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. . 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. ~ Q Y: - ~~ Well History File Identifier Organizing (done) v!Two-sided 1111111111111111111 D Rescan Needed 1111111111111111111 RJ8CAN \¢ Solar Items: ~eYSCale Items: D Poor Quality Originals: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, NolType: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: NOTES: Date y. ¡ I ~Û 0 7 Date it) /1)0 7 -+ X 30 =:;J.. Jo Date: D D Other:: BY: ~ 151 mfJ Project Proofing 11111111111111 "III Y\'1f BY: ~ 151 BY: +~ = TOTAL PAGES :J;;)-r¡ (Count does not include cover sheet) il\A {J 151 .L!t r /1/11111111111" III Scanning Preparation Production Scanning Stage 1 Page Count from Scanned File: ;:(30 (Count does include?r sheet) Page Count Matches Number in Scanning Preparation: V YES E¿ Date: LJ-J 1 q 1 07 If NO in stage 1, page(s) discrepancies were found: NO 151 W1 f NO BY: Stage 1 YES BY: Maria Date: 151 1/11111111111111 III Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: 151 Comments about this file: Quality Checked 11111111I11I111111I 10/6/2005 Well History File Cover Page. doc • • '/ Marathon Alaska Production LLC ft x.._11 P. Asset Team Marathon Oil P.O. . Box 1949 Kenai, AK 99611 Telephone (907) 283 -1371 Fax (907) 283 -1350 January 16, 2012 Mr. Daniel Seamount Alaska Oil & Gas Conservation Commission JAN 2012 333 W 7 Ave Anchorage, Alaska 99501 t,d113, o1nrnissio n Reference: 10 -404 Report of Sundry Well Operations 1 Field: Ninilchik Unit Well: Susan Dionne #4 Dear Mr. Seamount, Attached for your records is the10 -404 Report of Sundry Well Operations for SD -4 well. This report covers the work performed to install a velocity string. The 1 -3/4" velocity tubing was landed at a setting depth of 10,570' MD. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, JZAr „9-4 led--et. 5,,ANNEDJAN, 6 nii=. Kevin J. Skiba Regulatory Compliance Representative • Enclosures: 10 -404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary (2) KJS STATE OF ALASKA . ALASKA AND GAS CONSERVATION COMMISSI. REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon LJ Repair Well H Plug Perforations H StimulateH Other H Install Velocity Performed: Alter Casing ❑ Pull Tubing ❑ Perforate New Pool ❑ Waiver ❑ Time Extension ❑ String Change Approved Program ❑ Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Alaska Production LLC Development 111 Exploratory - 204 - 233 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 - 1949 f 50 133 - 20547 - 00 - 00 7. Property Designation (Lease Number): r 8. Well Name and Number: ADL 0384372 . Susan Dionne #4 9. Field /Pool(s): • Ninilchik Field / SD Tyonek Undefined Gas 11. Present Well Condition Summary: Total Depth measured 11,953' feet ,,, c , NE Plugs (measured) NA feet true vertical 8,367' feet "'- ''''' Junk (measured) 11,300' feet Effective Depth measured 11,820' feet ,gyp y sIiecineasured) 5,873' feet true vertical 8,234' feet l8 v,Ot1`/s - (true vertical) 3,298' feet op .ter t i „ - iw, Casing Length Size MD' TVD Burst Collapse Structural Conductor 101' 20' 122' 122' 3,060 psi 1,500 psi Surface 1,830' 9 -5/8” 1,851' 1,541' 5,750 psi 3,090 psi Intermediate 6,077' 7' 6,098' 3,397' 7,240 psi 5,410 psi Production 5,852' 4 -1/2" 5,873' 3,298' 8,440 psi 7,500 psi Liner 6,054' 4 -1/2" 11,927' 8,341' 8,440 psi 7,500 psi Perforation depth: Measured depth: 10,406' - 11,171' True Vertical depth: 6,821' - 7,585' Velocity String 1 -3/4" Tapered Work String 10,570' MD 6,985' TVD Tubing (size, grade, MD & TVD): Tie -back 4 -1/2" L -80 5,873' MD 3,298' TVD SSSV: NA - MD - TVD Packers and SSSV (type, MD & TVD): Packers: Baker 4 -1/2" ZXP 5,873' MD 3,298' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): Installed 1 -3/4" velocity string at 10,570' 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 5,802 1 340 569 Subsequent to operation: 0 2,975 1.5 340 780 13. Attachments: 14. Well Class after work: Copies of Logs and Surveys Run Exploratory "❑ Development el " Service ❑ Daily Report of Well Operations X 15. Well Status after work: Oil LJ Gas GI • 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: 311 - 126 Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative L Signature • v Phone (907) 283 -1371 Date January 16, 2012 " " et' . I% RBDMS JAN 18 20 Form 10 -404 Revised 7/2009 / j� Submit Original Only • • • /f%IL Operations Summary Report by Job Marathon Oil Well Name: SUSAN DIONNE 4 Qtr /Qtr, Block, Sec, Town, Range Field Name License # State/Province Country 6006001S013W01 I NINILCHIK - SUSAN DIONNE ALASKA USA Casing Flange Elevation (ft) 'Ground Elevation (ft) KB- Casing Flange Distance (ft) IKKB-Ground Distance (ft) Spud Date Rig Release Date 0.00 135.00 156.00 21.00 12/9/2004 Daily Operations Report Date: 11/29/2011 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU Baker CoilTech. Test BOP's. Prepare to run V string. Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Corn 08:00 09:00 1.00 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 09:00 15:00 6.00 RURD COIL Start equipment. Lay out drip liners. Move Rain for Rent open top tank into berm. Move choke into berm. Install end of berm. Spot BJ CoilTech equipment. Hammer up 2" hard lines from choke to flowback tank. ND tree cap. NU DSA. NU 4- 1/16" Dual combi BOP's. 15:00 16:00 1.00 TEST BOPE Function test Dual Combi BOP's. Test blind /cutters. 250 psi low /4500 psi high. Tat-TM-Install test bar. Test pipe rams /slips- 250 psi low /4500 psi high. Test good. Test cummi unit. 16:00 17:00 1.00 RURD COIL Carry injector out to WH. cable off to reel and WH. Install hydraulic control lines. Release reel brake. Pull coil end out to injector assmbly. Stab coil end and engauge chains. RIH with chains to run coil out the endof the injector. 17:00 17:30 0.50 SECURE WELL Secure equipment and location for the night. Turn in permit. Sign out and leave loc. Report Date: 11/30/2011 Job Category: R &M MAINTENANCE 24 Hr Summary Run coil in hole to 10,570'. The tag end of the coil had been trimmed since previous hangoff attemp in May. Cut coil and dual dimple -on from Mays attemps. Install coil hangers, grapples, and hangoff equipment. Dropped coil into well duringattempt to hangoff. RD for the night to plan forward. Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Corn 08:00 09:00 1.00 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 09:00 11:48 2.80 RURD COIL Start equipment. Transfer N2 to pump unit. Vetco and Baker check dimensions of hanger assembly. Determined we need 4' of additional 4- 1/16" lubricator. MU eqalizing line from flow cross to BOP's. Transfer 15 bbls water into MEOH tank. PU injector assembly. Carry to well head. Install walking dogs. 11:48 12:18 0.50 PUMP N2 Pumped two bbls of MEOH thru coil and displaced with N2 @ 500 psi. Coil is clear. 12:18 14:36 2.30 RURD COIL Bleed pressure in coil. ND injector. PU 4' of 4- 1/16" lubricator and 12' of 5- 1/16" lubricator. Install BHA grapple. Pull test to 15K. Test good. MU BHA and pull up into lubricator. Carry lubricator to WH. MU Bowen connection. Install walking dogs. 14:36 15:06 0.50 TEST EQIP Test shell with N2 to 1000 psi. Test good. Bleed N2 from lubricator. 15:06 18:36 3.50 RUNPUL COIL Open swab valve and RIH to 10,570'. Run dual dimple -on from previous attempt into lubricator. www.peloton.com Page 1/4 Report Printed: 1/16/2012 • • /MO Operations Summary Report by Job Marathon Oil Well Name: SUSAN DIONNE 4 Qtr /Qtr, Block, Sec, Town, Range Field Name I License # State /Province Country 6006001S013W01 I NINILCHIK - SUSAN DIONNE ALASKA USA Casing Flange Elevation (ft) !Ground Elevation (ft) KB- Casing Flange Distance (ft) IKKB-Ground Distance (ft) Spud Date Rig Release Date 0.00 135.00 156.00 21.00 12/9/2004 Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Com 18:36 22:06 3.50 RURD COIL Close pipe rams /slips. Bleed lubricator. Walk injector up coil and off BOP's. Install plate and C clamp. Cut weep hole. No pressure in v string. Cut coil. Pull coil ends straight. Prep ends and install dimple -on crossover. MU 2' centralizer and 3" GS (overal length 4'). Pull up into 5- 1/16" lubricator. MU Vetco hanger and 6' centralizer to GS. Spins freely in lubricator. Vetco preps ens of V string and installs grapple. MU 6' x 4" centralizer to grapple. Take measurements to lower lockdown screws. 19.34'. Remove clamp and C plate. Walk injector down onto BOP's. Shut in gas flow and wing valve and divert to 2- 1/16" annular valves. 5.3 MMscf /d @ 500 psi. Slowly equalize pressure in lubricator. Pull test to 16K. Unlock and open BOP's. Mark spool. Man lift too short to mark goose neck. Cann't RIH cann't pull up. PUH to 20K. Pipe doesn't move. Push in hole to 5K. Pipe doesn't move. Check BOP's. Flags indicator BOP's are released. Saw no weight change when pipe slips were released. Push in hole to 10K and pipe starts moving. RIH to marks. Run in lower lockdown screws. Continue RIH. Taking weight. Set down and run in upper lock down screws. Still takeing weight. Screws run in to far. Release upper screws and PUH a foot. Notriced no string weight. POOH 10' and close lower master. It closed 21 turns, indicating that we lost the string. 22:06 00:06 2.00 RURD COIL Pull up into lubricator. Close swab valve. Bleed lubricator. Carry injector off BOP's. RIH and we appear to have all of our hangoff equipment except the coil tubing. Appears that the coil pulled out of the grapple. Grapple is made up and no damaged noted. Allen lock screws in place to prevent backing off. Stand back the lubricator and tie off. LD the 4- 1/16" lubricator. Stand back the injector assembly and chain off. Install night cap. Leave well flowing thru the annulus. 00:06 00:06 Secure well and location for the night. Turn the well over to operations while we plan forward. Sign out and leave loc. Report Date: 12/2/2011 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU slick line to tag top of fish. RIH w/ 2.80" LIB. Tag top of fish @ 1149' kb. ✓ Ops .. Trouble Start Time End Time ♦ Our (hr) Ops Code Activity Code Status Code Corn 08:00 09:00 1.00 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 09:00 11:15 2.25 RURD SLIK MIRU slick line of top of BJ's BOP's. MU lubricator. MU 1 -3/4" tool string - RS, KJ, acceloratorjars,1 -3/4" x 15' stem, KJ, OJ, SJ, 3.5" LIB 11:15 11:30 0.25 TEST EQIP Test lubricator to 1500 psi. Test good. 11:30 12:30 1.00 RUNPUL SLIK ' RIH (1) w/ 3.5" LIB. Cann't get thru the tree with well flowing 5.7 MMscf /d. POOH. 12:30 13:06 0.60 RUNPUL SLIK RIH (2) w/ 2.80" LIB. Tag fish @ 1128' wlm: 1149' kb. LIB shows partial impression of top of coil. 13:06 13:21 0.25 RUNPUL SLIK Shut in well. RIH (3) w/ 3.70" LIB. Tag fish @ 1128' wlm. -1149' kb. LIB indicates top of coil hard up against the top wall of the casing. 13:21 14:21 1.00 WAITON ORDR Standby waiting to discuss tag results with Mr Mike Ellis. Decide not to attempt to "bait" fish at this time. Possibility of deforming top of coil, which looks good on LIB. 14:21 15:21 1.00 RURD SLIK RD slick line unit. 15:21 15:36 0.25 Secure well and location. Turn in permit and sign out. Report Date: 12/4/2011 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU Weatherford to fish coil. RIH. Tag fish at 1122' ctm. Start motor. Slack off and latch fish. Pu1133 -38K to pull fish uphole. Pull fish up into BOP's. Shut well in for the night. I I www.peloton.com Page 2/4 Report Printed: 1/16/2012 • • f Jj Operations Summary Report by Job Marathon Oil Well Name: SUSAN DIONNE 4 Qtr /Qtr, Block, Sec, Town, Range Field Name License # State/Province Country 6006001S013W01 I NINILCHIK - SUSAN DIONNE ALASKA USA Casing Flange Elevation (ft) !Ground Elevation (ft) I KB- Casing Flange Distance (ft) I KB- Ground Distance (ft) Spud Date Rig Release Date 0.00 135.00 156.00 21.00 12/9/2004 Ops Trouble Start Time End Time Dur (hr), Ops Code Activity Code Status Code Com 08:00 09:15 1.25 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 09:15 15:00 5.75 RURD COIL Start light plant and equipment. Wait for all clear on radioes ". PU 8' of 4- 1/16" lubricator. PU 12' od 5 -1/6" lubricator. Cut offf dimple -on. Prep end of coil for Weatherford coil grapple. Install Wford grapple. Pull test to 30K. Test good. Carry lubricator to WH. Load coil w/ MEOH. Can hear motor running. 15:00 17:00 2.00 RUNPUL COIL Open swab valve. RIH w/ motor and cut lip overshot. Tag fish @ 1122'. RIH at 30 fpm. Set down on fish. PU. No engaugement. Start motor at 1 bpm. Set down and engauge fish. Pull up to 38K fish coming slowly. Slowly dragging fish up hole at 33 to 36K. Pull fish up into lubricator. Close pipe rams /slips. 17:00 18:00 1.00 RURD COIL Bleed and break lubricator. Walk injector up coil. Cut coil. Lay down motor and overshot. Install 4' 4- 1/16" lubricator for tree cap. RD for the night. 18:00 18:15 0.25 SECURE WELL Sec ure well and location for the night. Freezing rain. Roads and location are very slick. Probably won't work tomorrow if this keeps up all night. Report Date: 12/6/2011 Job Category: R &M MAINTENANCE 24 Hr Summary MIRU Pollard to run slickline down thru coil. Looking for possible damage or kink. Unable to get tool string into the V string. RD slick (line. RU coil and hangoff V string. Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code- Corn 08:00 08:30 0.50 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 08:30 13:00 4.50 RURD SLIK RD equipment on SD 7. Move to SD 4. Spot equipment. PU lubricator. MU 1" tool string- RS, KJ, 5' Rstem, KJ, 10' Rstem,KJ, OJ, LSSJ, 3.5' X1.25 " Bailer to simulate PX plug. PU lubricator and carry to WH. Zero to V string hanger. Straighten coil stubb. Still can not get 1.25" bailer into coiol. Make an attemp w/ 1.25" LIB. RD. 13:00 15:00 2.00 RURD COIL RU Baker CoilTech. Start equipment. PU injector. Prep coil ends. Install dimple -on connector. Pull test to 30K. PU 8' x 4 -1/16" lubricator. PU 12' x 5 -1/16" lubricator. MU GS /centralizer on coil dimple -on. Pull up into lubricator. Vetco prep coil stub. Staighten coil strub. MU 6' centralizer /hanger assembly onto Vetco hanger. Pull 10K w/ crane. Measure distance from bottom of centralizer to lower lockscrews (12' 11- 1/2 "). Remove C clamp and plate. Walk injector down coil. Set walking dogs. Pull test Vetco hanger to 30K. Test good. Equalize well pressure in lubricator 600 psi. Mark Coil at goose neck( 19' 1 -1/2 ") 15:00 18:00 3.00 RUNPUL COIL PU coil to coil weight. Release pipe /slip rams. RIH 18' 8 ". Run in lower lockscrews. RIH 6 ". Set weight down on lower lockscrews. Run lower screws further. Run in upper lock screws. 18:00 18:30 0.50 TEST EQIP Negative test hanger packoff. NO gas flow. PTest packoff to 5K for 10 min. Test good. 18:30 19:06 0.60 PUMP N2 Pump MEOH to coil. Release GS. Break lubricator. LD GS and centralizer. Install nozzle. MU lubricator. Shut well in. Displace MEOH to tanks w/ N2. Start pumping N2 into coil. Pressure coil to 1900 psi. Pop off BHA barriers. 19:06 20:06 1.00 FLOW BACK Flow N2 back to flowback tank until LEL detected. Turn well over to operations. 20:06 21:06 1.00 RURD COIL RD coil for the night. Stand back 5" lubricator. LD 4" lubricator. Cable off injector assembly. Install night cap on BOP's. 21:06 21:21 0.25 SECURE WELL Secure well and location for the night. Report Date: 12/7/2011 Job Category: R &M MAINTENANCE 24 Hr Summary RD coil www.peloton.com Page 3/4 Report Printed: 1/16/2012 4 • " 0 411 jj Operations Summary Report by Job Marathon Oil Well Name: SUSAN DIONNE 4 Qtr /Qtr, Block, Sec, Town, Range Field Name License # State /Province Country 6006001S013W01 I NINILCHIK - SUSAN DIONNE ALASKA USA Casing Flange Elevation (ft) 'Ground Elevation (ft) KB- Casing Flange Distance (ft) IKKB-Ground Distance (ft) Spud Date Rig Release Date 0.00 135.00 156.00 21.00 12/9/2004 Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Com 10:15 11:00 0.75 SAFETY MTG Arrive location, sign in, receive safe work permit, hold PJSM - topics discussed - reviewed JSA, assigned jobs, slips, trips, falls, eye wash station, high pressure, emergency numbers, emergency vehicles, muster area, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, stop the job authority, and keeping the focus on the job. Emphasize that we are in no hurry today. 11:00 19:00 8.00 RURD COIL RD 2" hard line. ND BOP's. Install tree cap. PTest cap. Test good. RD equipment and prepare to move to PX 1. 19:00 19:15 0.25 SECURE WELL Secure well and location. Turn in permit and leave loc. • www.peloton.com Page 4/4 Report Printed: 1/16/2012 f fd 6 • Permit #: 204 -233 SD - 4 if,•k``�t_'l API #: 50- 133 - 20547 -00 -00 Ninilchik Unit Marathon o Prop. Des: ADL - 384372 KB Elevation: 156' (21'AGL) 104' FSL & 1,331' FEL Alaska Production LLC.. X: 213,102.309 Sec. 6, T1S, R13W SM Y: 2,236,587.738 Latitude: 60° 06' 46.287 "N Longitude: 151° 34' 21.711" W Conductor Spud: 12/10/2004 20" K - 55 133 ppf PE TD: 01/03/2005 T� Bottom Rig Released: TV D 0' 122' t• { Surface Casing 9 -5/8" L -80 40 ppf BTC Baker Chemical Injection Nipple log Bottom @ 2,396' MD (Top) 5.930" OD /3.858" ID; MD 0' 1,851' 8,430 psi burst/7,500 psi collapse TVD 0' 1,541' ' 12 -1/4" hole w \403 sks 12 ppg cement • ,1' KOP © 250' MD/TVD . • Build 4.0° / 100' from 250 - 1,980' Intermediate Casing Hold 64° from 1,980- 6,000' MD 7" L -80 26 ppf BTC Drop 2 °/ 100' to 8,200' MD Tom Bottom Hold 30.5 from 8,200 - 8,400' MD MD 0' 6,098' Drop 2 ° / 100' from 8,400'- 10,015' MD TVD 0' 3,397' Final angle of 2.6° @ TD of 11,953' MD 8 -1/2" hole cemented w1263 sks 12.5 ppg Azimuth: 265° 9,766' MD & 99° 11 953' TD @ @ � Lead & 185 sks 15.8 ppg Tail 1* t}' 1 Liner Tie -back 4 -1/2" L -80 12.6 ppf Hydril 533 4 -112" L -80 12.6 ppf IBT Mod - 1:3a Bottom Ton Bottom MD 5,873' 11,927' MD 21' 5,873' TVD 3,298' 8,341' TVD 21' 3,298' t 6-1/8" hole cemented w/ 498 sks 13.5 ppg v I. class -G f ZXP Liner Packer with 15' Tieback Extension © 5,873' MD (Top) ' Velocity String (installed on 12/5/2011) Flex -Lock Liner Hanger @ 5,897' MD (Top) )!: 1 -3/4" OD Marker Joint @ 8,115 - 8,131' MD T_oi Bottom Marker Joint @ 9,767 - 9,783' MD 1 MD 21' 10,570' Landing Collar @ 11,830' MD (Top) TVD 21' 6,985' Float Collar @ 11,863' MD (Top) 1 _ , BHA includes: 2.50" OD X 1.50" ID CT grapple Float Shoe @ 11,927' MD (Bottom) connector, 2.50" OD X 1.50" ID X 10' long box by 91 box straight bar, 1.91" OD X 1.25" PXN (1.135" no -go) profile nipple, and 2.50" OD AIL i (1.50" ID top box 2.0" ID bottom) wireline re -entry guide Used 6'x 4.0" OD centralizer(2 -3/8" pup joint) below coil Cement Top hanger @ 6,600' 1 i . 0 Expro Radial Bond Tyonek Perfs: Formation Tops: Log Formation Depth (MD) Depth (TVD) I 4-0,4-16' 0 TVD Net 10,140' . Ne Ft. 24 Owen-3-318 -14403/04- Patched Beluga 912' 884' 10,406'- 10,414' 6,821'- 6,829' 8' Owen 3-3/8" 6spf 05/31/06 Tyonek 6,120' 3,406' 10,420'- 10,435' 6,835'- 6,850' 15' Owen 3 -3/8" 6 spf 05/26/06 TD 11,953' 8,367' 10,458'- 10,472' 6,873'- 6,887' 14' Owen 3 -3/8" 6spf 05/09/06 i 10,559'- 10,602' 6,974-7,017' 43' Owen 3 -3 /8" 6 spf 03/19 &22/05 10,612'- 10,636' 7,027-7,051' 24' Owen 3 -3/8" 6 spf 03/19/05 r 10,769'- 10,782' 7,184-7,197' 13' Owen 3 -3/8" 6 spf 03/19/05 10,855'- 10,869' 7,270 - 7,284' 14' Owen 3 -3/8" 6 spf 03/19/05 I 10,876'- 10,890' 7,291 - 7,305' 14' Owen 3 -3/8" 6 spf 03/17/05 11,116' - 11,135' 7,530- 7,549' 19' Owen 3 -3/8" 6 spf 03/17/05 Owens Patch a: 10,112.5' - 10,143.5'. 3.1" ID ' 11,147' - 11,171' 7,561- 7,585' 24' Owen 3 -3/8" 6 spf 03/17/05 Buckled pipe at 10,125'. Min ID 3.69" July 08 - 3.72 GC to 10,225' after milling in Oct 08 L Tagged TD @ 11,690' w \Expro PLT (7/23/2010) Tagged @ 11,820' MD w12" nozzle on 1 -3/4" Coil Tubing L Perf Gun Fish: 3 -3 /8" Perf Gun after perforating 10,116 - 10,140' MD (24'). - . -0 • Top tagged at 11,300' MD with P -T Tool on 06/15/2007. 4 Gun Dimensions - Rope Socket - 1' L, 1.43" OD, Collar Locator - 2.5' L, 3.125" OD, PX -1 Det Housing 1.5' L, 3.125" OD, 3 -3/8" Perf Gun w/ 2 -5/8" Cores: Subs- 26.5' L, 3.375" OD. (Overall Length 31.5') 1. 8,256'- 8,346' KB (Cut 89' Recvd 84') 2. 10,940' - 10,969' KB (Cut 29' Recvd 25.5') 3. 10,969' - 11,031' KB (Cut 62' Recvd 62') TD PBTD 11,953' MD 11,820 MD 8,367' TVD 8,234' TVD Well Name & Number: Susan Dionne #4 Lease: Ninilchik Unit, ADL- 384372 Municipality: Kenai Peninsula Borough State: Alaska 1 Country:I USA Perforations (MD): 10,406' - 11,171' Perf (TVD): 6,821' - 7,585' Angle KOP & Depth: 3° / 100 ft A 250' MD Angle A Perfs: - 2° Date Completed: 3/18/2005 Ground Level: (AMSL) 1 RKB:) 21' (AGL) Revised by: Kevin Skiba Revision Date: 01/16/2012 • • SITAIrE OEF ALASKA SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Kevin J. Skiba Regulatory Compliance Representative - 3 Marathon Alaska Production, LLC 0 P.O. Box 1949 Kenai, AK 99611 -1949 Re: Ninilchik Field, Tyonek Undefined Gas Pool, Susan Dionne #4 Sundry Number: 311 -126 SwiMED APR 1 CT Lu Dear Mr. Skiba: 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. Sin 4 • i- DATED this /4 of April, 2011. Encl. • Mara, Alaska Production LLC Alaska Asset Team Marathon P.O. Box 1949 MARATH Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 April 13, 2011 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7 Ave RECEIVED Anchorage, Alaska 99501 4 ITE t $sko t it & f os Cons. Commission Reference: 10 -403 Applications for Sundry Approvals Ancflorge Field: Ninilchik Unit Well: Susan Dionne #4 Dear Mr. Aubert: Submitted for your approval is the10 -403 Applications for Sundry Approvals for the SD -4 well. Marathon proposes to install a 1.75" coil tubing velocity string in SD -4 to help prolong well life by reducing it's unload rate. This will also give the Operations Group increased flexibility to respond to future seasonal production fluctuations. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, 14i611* ,�2f11� y Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10 -403 Applications for Sundry Approvals cc: AOGCC Current Well Schematic Houston Well File Proposed Well Schematic Kenai Well File Operations Program KJS STATE OF ALASKA 1� /� J RECEIV;L ALASKA AND GAS CONSERVATION COMMISSIO 't "� 1 R 20't /` APPLICATION FOR SUNDRY APPROVALS VJerA 20 AAC 25.280 r S(� o it 1. Type of Request: Abandon 111 Plug for Redrill ❑ Perforate New Pool 111 Repair well El I CA a ogram Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ 'oof Extension ❑ Operational shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter casing ❑ Other: Install Velocity String -❑ 2. Operator Name: Marathon Alaska Production LLC 4. Current Well Class: 5. Permit to Drill Number: Development E _ Exploratory ❑ 204 -233 3. Address: PO Box 1949 Stratigraphic E Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20547 -00 -00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No D Susan Dionne #4 9. Property Designation (Lease Number): 10. Field /Pool(s): ADL 0384372 Ninilchik Field / SD Tyonek Undefined Gas - 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): 11,953' - 8,367' 11,820'. 8,234' - NA 11,300' Casing Length Size MD / TVD Burst Collapse Structural Conductor 101' 20' 122' 122' 3,060 psi 1,500 psi Surface 1,830' 9 -5/8" 1,851' 1,541' 5,750 psi 3,090 psi Intermediate 6,077' 7' 6,098' 3,397' 7,240 psi 5,410 psi Production 5,852' 4 -1/2" 5,873' 3,298' 8,440 psi 7,500 psi Liner 6,054' 4 -1/2" 11,927' 8,341' 8,440 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 10,406' - 11,171' 6,821' - 7,585' / Tie -back 4 -1/2" L -80 5,873' Packers and SSSV Type: SSSV: NA Packers and SSSV MD (ft) and TVD (ft): - / - Packers: Baker 4 - 1/2" ZAP 5,873' 3,298' 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development 0 Service ❑ 14. Estimated Date for 15. Well Status after proposed work: M 9,2011 Commencing Operations: Oil El Gas Q WDSPL ❑ Plugged ❑ 16. Verbal Approval: Dat WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 - 1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative Signature ti 61 - Phone (907) 283 -1371 Date April 13, 2011 COMMISSION USE ONLY /, Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3, c- t oco Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: I 0 — 4 • N / APPROVED BY Approved by: e •MMISSIONER THE COMMISSION Date: 4 9 - /4 -fl _ RBDMS APR 15 2011 ' '" ORIGINAL Form 10 -403 Revised 12/2009 Submit in Duplicate M MARATHON MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM Susan Dionne #4 Ninilchik Unit Susan Dionne Pad Coiled Tubing Velocity String Hang -off Procedure WBS # WO.11.24028.CAP.001 APPROVALS: Mike Sulley (3/21/2011) Program Writer Mike Ellis Lyndon Ibele Latest Version Date: 3/21/11 Well Status: The well is producing 6.8 MMSCFD at 680 psi with 2 BWPD. Notes: • This procedure covers work to install a 1.75" OD coil tubing velocity string to alleviate liquid loading. • Contact Vetco prior to MIRU to install Velocity String hanger and verify maximum hanger head ID & mandrel OD measurements. • Schedule Construction group to fabricate new pipe spools and I &E installation. • BJ CoilTech supervisor will drift all BHA connections prior to rig up to insure drift ID of individual connections. • Pollard Wireline will install 1.25" PXN equalizing blanking plug into coil tubing profile nipple and pressure test to 3000 psi in both directions prior to BJ CT arrival on location. • A taller well house will be required after CT hanger spool is added to the tree. Last PT was 7/23/2011. PT tools cleared to 11,690'. Coiled Tubing Velocity String Hang -off Procedure 3/21/2011 - 1 - • • Objectives: Install a 1.75" CT V- string to prolong well life by reducing unload rate and will give operations greater production flexibility in the future. Resources: Coiled tubing set up with pump and N2 pump Approx 11,000' of 1.75" CT Arctic Iron and choke skid, gas buster, tank set up Manlift / 2 Light plants Vetco Crew for wellhead modifications /hang -off assembly install. Procedure: Disconnect power to wellhouse (call electrician). MI man lift. MI crane. Remove well house. Paperwork: Sundry Notice, WBD, Work Permit, Well Ops transfer sheet. A. Install Coiled Tubing Head Talk to construction and make arrangements to complete instrumentation, electrical, logic, and FCO to minimize shut -in time. Shut in well. Vetco to set 4" Cameron Type -H BPV. Close bottom master. Bleed off pressure and check for flow. Remove top master and install new Vetco 4 -1/16 10M CT Head with 2- 1/16" 5M side outlet. Install 2- 1/16" gate valve and SSV to side outlet on coil tubing head. Orient as necessary. Reinstall and test (with diesel) top master and swab valve. Make final measurements to install flow -line to CT Head outlet. Pull BPV. B. Flow -line modifications for coil tubing string Hand over well to construction to modify flow -line and install V- string flow -line and choke. Velocity string flow -line does not need dedicated gas metering (IPR / indicates no appreciable rate gain for flowing up annulus). After complete, return well to production. C. MIRU MOC flowback equipment Coiled Tubing Velocity String Hang -off Procedure 3/21/2011 -2- • • This includes open -top flowback tank, choke skid, gas buster, and flowback iron. MIRU 80bbI vac truck with 6% KCI. Lay liner and berm area around tank. D. Hang Off 1.75" CT 1. MIRU BJ coiled tubing unit. Verify 24 hour notification has been made to AOGCC for BOP test. Rig up fluid and N2 pumps. RU pumping iron (BJ) and Arctic flow back iron (MOC). RU equalizing hose from BOP to top of lubricator. 2. Nipple up BJ,�T wellhead assembly (WHA). Current WHA is 4- 1/16" 5M swab /cap. A to include 4-1/16" - 5M X 4-1/16" - 10M DSA, 4-1/16" - 10M X 5' Flanged Riser, 4- 1/16" — 10M flow cross and 4- 1/16" - 10M Dual - Combi BOP (dressed for 1 -3/4" CT). Function test BOP. Stab 1 -3/4" CT into injector. Have BJ prep coil end off location prior to RU. Nipple up injector to WHA. 3. Perform complete BOP test and complete AOGCC BOP test report (Correct form dated 01/25/2010). Pressure test pump iron (200 low /4500 high psi). Pressure test WHA and flow back iron to choke manifold (200/4500 psi). Pressure test BOP rams (200/4500 psi). Note BOP test witness or waiver in WeIlView, including details. 4. Pig CT. Run end of CT with pig catcher onto Well head. Open valves on flow cross to flow back tank. Pump 5 bbls water, cleaning pig, and coil displacement +10% behind pig. 5. MU CT BHA. Nipple injector off WH. PU 10' of 4- 1/16" CQ lubricator. MU velocity string BHA to end of CT. Install dimple on connector. Pull test to 18K. Pressure test coil to 3200 psi. Blow down coil with approximately 10,000 scf of N2 to flow back tank. Continue installing BHA. BHA to include: a. 2.50" OD X 1.50" ID CT grapple connector, b. 2.50" OD X 1.50" ID X 10' long box x box straight bar, c. 1.91" OD X 1.25" PXN (1.135" no -go) pin x pin, d. 2.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline re- entry guide with 2.0 OD" x 2.50" OD 0-ring sealed aluminum pump - off plug. Strap and record velocity string BHA dimensions and lengths. Include record in WeIlView and on updated WBD. Coiled Tubing Velocity String Hang -off Procedure 3/21/2011 -3- • • 6. Nipple up iniector to WHA. Pressure test WHA using CT kill line (200/1500 psi). Bleed WHP to flow back tank. Prior to next Step, ensure that flowback line from WHA through choke manifold to gas buster is ready and available to keep TP at or below 1500 psi while RIH to eliminate possible CT collapse. This would serve as a backup if flow through the production flow line was unexpectedly curtailed or ceased. 7. RIH with coil tubing velocity string and BHA with well flowing to sales up annulus (running v- strings into shut -in wells has been very unsuccessful). 8. Cut coil tubing. POH to span WHA for final landing depth, 0,621 . Set CT in BOP tubing /slip rams. Lock tubing /slip rams. Slack • hector chain traction and roll chains to verify slips are set. Release WHP above tubing rams to the flowback tank. Nipple injector off of WHA. Walk injector up CT. Install C plate above BOP and polish rod clamp on CT. Cut weep hole. Cut CT above BOP high enough to allow Vetco to install CT connector and hanger mandrel assembly. 9. MU Vetco Coil Tubing Hanger and Weatherford Hydraulic Release GS Running Tool. (Only hand filing OD of CT above BOP. HOT WORK PERMIT REQUIRED for air grinder /carbide burr). GS running tool should be plugged to release on pressure, not rate. Swing Injector and lubricator away from WH. Vetco to connect VGCT Coil Tubing Hanger (4" Nom C/W 3" Weatherford Fishing neck with 2 -3/8" 8rd Box and 2" BPV) to hanging coil tubing with coil grapple. While Vetco is making up CT hanger, BJ CoilTech to connect Weatherford GS tool string assembly to coil on reel trailer. Dimple -on a 1 -3/4" CT connector. Pull test CT connector (25,000 lbs.) using 1.125" 10SA box X 1 -1/2" MT pin crossover and 1 -1/2" MT box pull plate. Tool string will consist of 1 -3/4" slimline dimple -on, 1 -3/4" DF check valve, 1.125' 10SA box X 1 -1/2" MT pin X- over and a plugged 3" GS spear. PU or lay down 4" lubricator as needed to cover GS tool string and Vetco CT hanger. 10. Latch GS spear to Vetco mandrel after PU injector. Remove polish rod clamp and C -plate from top of BOP. Accurately measure from hanger assembly to CT lock down screws. Walk injector down CT and nipple injector /lubricator to top of BOP. Pull test CT mandrel connection /GS spear assembly to CT string weight plus 5,000 lbs. Slack off weight to CT string weight. Measure and mark the exact distance that the CT has to move down to align the hanger. Make all measurements on the gooseneck with all rollers locked. Equalize WHP across tubing rams. Unlock tubing /slip rams. Open BOP tubing /slip rams. Coiled Tubing Velocity String Hang -off Procedure 3/21/2011 -4- 1 • 11. RIH and land Vetco CT hanger per Vetco procedures. Stop hanger 1' high and run lower lockdown screws to their landing position. Lower hanger onto the lockdown screws and then lock upper screws. Verify string and hanger are landed and secured per Vetco procedures. Slack off string weight to neutral. Tighten lock screws. Pressure test hanger between slab seals to 5000 psig for 10 min. with hand pump pressure test unit (Vetco Supplied). 12. Release GS Running Tool. Start pumping 6% KCL water or N2 to pressure up CT to release GS spear. Set down weight and then pick GS off of hanger 13. RD and release CT. RD equipment, clean location, and turn in work permit. E. Pressure Up and Blow Pump -Off Plug Shut in sales and allow WHP pressure to build up to 1100 psi. Jumper gas from annulus to coil tubing until CT WHP is 1100 psi. While leaving CT shut in, open annulus to sales. The differential pressure between the coil tubing and annulus should blow off the pump out plug. If the situation dictates, pump off plug with N2. F. Flow Test Well to Sales No more than a 60% drawdown with methane gas in wellbore is permitted for the lowest open interval. Obtain stabilized flow within the 60% drawdown limit. The unloading rate up 4 -1/2" casing and 1.75" coil tubing in a vertical well is 4.0 MMCFPD and 638 MCFPD, respectively, at 800 psig FCP. Flow well to sales observing recommended drawdown rates. G. Complete Well Ops Transfer Sheet and distribute. Coiled Tubing Velocity String Hang -off Procedure 3/21/2011 -5- • • Permit #: 204-233 SD 4 API PI #: 50-133-20547-00-00 Prop. Des: ADL - 384372 Ninilchik Unit KB Elevation: 156' (21'AGL) 104' FSL & 1,331' FEL MARATtlOM X: 2,236,587.7 Sec. 6, T1S, R13W SM Y: 2,236,587.738 Latitude: 60° 06' 46.287 "N Longitude: 151° 34' 21.711" W Conductor Spud: 12/10/2004 i 20" K - 55 133 ppf PE TD: 01/03/2005 Tom Bottom 0' Rig Released TVD 0' 122' Surface Casing 122' 9 -5 /8" L -80 40 ppf BTC Baker Chemical Injection Nipple Tom Bottom @ 2,396' MD (Top) 5.930" OD/3.858" ID; MD 0' 1,851' 8,430 psi burst/7,500 psi collapse TVD 0' 1,541' 12 -1/4" hole w \403 sks 12 ppg cement KOP @ 250' MD /TVD Build 4.0° / 100' from 250 - 1,980' Intermediate Casing Hold 64° from 1,980- 6,000' MD 7" L -80 26 ppf BTC Drop 2 °/ 100' to 8,200' MD Top Bottom Hold 30.5° from 8,200 - 8,400' MD MD 0' 6,098' Drop 2°1100' from 8,400' - 10,015' MD 1 TVD 0' 3,397' Final angle of 2.6° @ TD of 11,953' MD 8 -1/2" hole cemented w \263 sks 12.5 ppg Azimuth: 265° @ 9,766' MD & 99° @ 11,953' TD Lead & 185 sks 15.8 ppg Tail Liner Tie -back 4 -1/2" L -80 12.6 ppf Hydril 533 4 -1/2" L -80 12.6 ppf IBT Mod Tom Bottom Top Bottom MD 5,873' 11,927' MD 21' 5,873' TVD 3,298' 8,341' TVD 21' 3,298' 6 -1/8" hole cemented w/ 498 sks 13.5 ppg class -G ZXP Liner Packer with 15 Tieback Extension @ 5,873' MD (Top) Flex -Lock Liner Hanger @ 5,897' MD (Top) Marker Joint @ 8,115 - 8,131' MD Marker Joint @ 9,767 - 9,783' MD Landing Collar © 11,830' MD (Top) Float Collar © 11,863' MD (Top) 0 - Float Shoe © 11,927' MD (Bottom) r _r i1 - Lyonek Perfs: MD TVD Net Ft. 40,116' 10,140' 6 - 6,556' 24 Patched Cement Top 10,406'- 10,414' 6,821'- 6,829' 8' Owen 3 -3/8" 6spf 05/31/06 @ 6,600' 10,420'- 10,435' 6,835'- 6,850' 15' Owen 3 -3/8" 6 spf 05/26/06 Expro Radial Bond 10,458' - 10,472' 6,873'- 6,887' 14' Owen 3 -318" 6spf 05/09/06 Formation Tops: Log 10,559' - 10,602' 6,974- 7,017' 43' Owen 3-3/8" 6spf 03/19&22/05 Formation Depth (MD) Depth (TVD) 10,612'- 10,636' 7,027- 7,051' 24' Owen 3 -3/8" 6 spf 03/19/05 Beluga 912' 884' 10,769'- 10,782' 7,184 - 7,197' 13' Owen 3 -3/8" 6 spf 03/19/05 Tyonek 6,120' 3,406' 10,855' - 10,869' 7,270- 7,284' 14' Owen 3 -3/8" 6 spf 03/19/05 TD 11,953' 8,367' 10,876' - 10,890' 7,291- 7,305' 14' Owen 3 -3/8" 6 spf 03/17/05 1',116' - 11,135' 7,530- 7,549' 19' Owen 3 -3/8" 6 spf 03/17/05 1'.,147' - 11,171' 7,561- 7,585' 24' Owen 3 -3/8" 6 spf 03/17/05 Owens Patch (7a : 10,112.5' - 10,143.5'. 3.1" ID Buckled pipe 5110,125'. Min ID 3.69" July 08 3.72 GC to 10,225' after milling in Oct 08 ' A L Tagged TD @ 11,690' w\Expro PL.T (7/23/2010) Tagged @ 11,820' MD w12" nozzle on 1 -3/4" Coil Tubing Perf Gun Fish: 3 -3/8" Perf Gun after perforating 10,116 - 10,140' MD (24'). Top tagged at 11,300' MD with P -T Tool on 06/15/2007. Gun Dimensions - Rope Socket - 1' L, 1.43" OD, Collar Locator - 2.5' L, F` 3.125" OD, PX -1 Det Housing 1.5' L, 3.125" OD, 3 -3/8" Perf Gun w/ 2 -5/8" Cores: Subs- 26.5' L, 3.375" OD. (Overall Length 31.5') 1. 8,256' - 8,346' KB (Cut 89' Recvd 84') 2. 10,940'- 10,969' KB (Cut 29' Recvd 25.5') 3. 10,969'- 11,031' KB (Cut 62' Recvd 62') TD PBTD 11,953' MD 11,820 MD 8,367' TVD 8,234' TVD Well Name & Number: Susan Dionne #4 Lease: Ninilchik Unit, ADL- 384372 Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 10,406' - 11,171' Perf (TVD): 6,821' - 7,585' Angle A KOP & Depth: 3° / 100 ft (c, 250' MD Angle A Perfs: - 2° Date Completed: 3/18/2005 Ground Level: (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 8/10/2010 PROPOSED • • Permit #: 204 -233 SD - 4 API #: 50- 133 - 20547 -00 -00 Ninilchik Unit Prop. Des: ADL - 384372 KB Elevation: 156' (21' AGL) 104' FSL & 1,331' FEL MARATHON X: 213,102.309 Sec. 6, T1S, R13W SM Y: 2,236,587.738 Latitude: 60° 06' 46.287 "N Longitude: 151° 34' 21.711" W Conductor Spud: 12/10/2004 20 " K -55 133 ppf PE MD 0' 122' TD: 01/03/2005 Top Bottom Rig Released: ^ TVD 0' 122' J Surface Casing 9 -5/8" L -80 40 ppf BTC Tom Bottom Baker Chemical Injection Nipple MD 0' 1,851' @ 2,396' MD (Top) 5.930" OD /3.858" ID; 8,430 psi burst/7,500 psi collapse TVD 0' 1,541' 12 -1/4" hole w1403 sks 12 ppg cement KOP @ 250' MD /VD Build 4.0 / 100' from 250- 1,980' Intermediate Casing Hold 64° from 1,980- 6,000' MO 7" L -80 26 ppf BTC Drop 2 °/ 100' to 8,200' MD T Bottom Hold 30.5° from 8,200 - 8,400' MD MD 0' 6,098' Drop 2 °/ 100' from 8,400'- 10,015' MD + TVD 0' 3,397' Final angle of 2.6° @ TD of 11,953' MD Azimuth: 265° @ 9,766' MD & 99 @ 11,953' TD 8 -1/2" hole cemented w1263 sks 12.5 ppg Lead & 185 sks 15.8 ppg Tail Liner Tie -back 4 -1/2" L -80 12.6 ppf Hydril 533 4 -1/2" L -80 12.6 ppf IBT Mod Top Bottom - 132 Bottom MD 5,873' 11,927' MD 21' 5,873' TVD 3,298' 8,341' TVD 21' 3,298' 6 -1/8" hole cemented w/ 498 sks 13.5 ppg class -G ZXP Liner Packer with 15' Tieback Extension @ 5,873' MD (Top) Flex -Lock Liner Hanger @ 5,897' MD (Top) Velocity String (installed on ) Marker Joint @ 8,115 - 8,131' MD _ 1 -3/4" OD Marker Joint © 9,767- 9,783' MD Top Bottom • Landing Collar © 11,830' MD (Top) MD 21' 10620' - Float Collar © 11,863' MD (Top) J 4 TVD 21' 7035' Float Shoe © 11,927' MD (Bottom) - . BHA includes: 2.50" OD X 1.50" ID CT grapple ■ connector, 2.50" OD X 1.50" ID X 10' long box by I box straight bar, 1.91" OD X 1.25" PXN (1.135" t no -g o) profile nipple, and 3.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline Cement Top @ 6,600' Expro Radial Bond : Formation Tops: Log MD TVD Net Ft. Formation Depth (MD) Depth (TVD) 10,116' 10,1 ^0' 6,531'- 6,555' 24' Patched Beluga 912' 884' 10,406' - 10,414' 6,821' - 6,829' 8' Owen 3 -3/8" 6spf 05/31/06 Tyonek 6,120' 3,406' 10,420'- 10,435' 6,835'- 6,850' 15' Owen 3 -3/8" 6 spf 05/26/06 TD 11,953' 8,367' • 10,458' - 10,472' 6,873' - 6,887' 14' Owen 3 -3/8" 6spf 05 /09 /06 10,559'- 10,602' 6,974- 7,017' 43' Owen 3 -3/8" 6 spf 03/19 &22105 10,612'- 10,636' 7,027- 7,051' 24' Owen 3-3/8" 6 spf 03/19/05 10,769'- 10,782' 7,184 - 7,197' 13' Owen 3 -3/8" 6 spf 03/19/05 10,855'- 10,869' 7,270 - 7,284' 14' Owen 3 -3 /8" 6 spf 03/19/05 10,876'- 10,890' 7,291- 7,305' 14' Owen 3 -318" 6 spf 03/17/05 Owens Patch @: 10,112.5' - 10,143.5'. 3.1" ID i�11 , 11,116' - 11,135' 7,530- 7,549' 19' Owen 3 -3/8" 6 spf 03/17/05 Buckled pipe at 10,125'. Min ID 3.69" July 08 _ 11,147' - 11,171' 7,561- 7,585' 24' Owen 3-3/8" 6 spf 03/17/05 3.72 GC to 10,225' after milling in Oct 08 Tagged TD @ 11,690' w \Expro PLT (7/23/2010) Tagged @ 11,820' MD w12" nozzle on 1 -3/4" Coil Tubing ,. C Perf Gun Fish: 3 -3/8" Perf Gun after perforating 10,116 - 10,140' MD (24') ` c Top tagged at 11,300' MD with P-T Tool on 06/15/2007. G Dimensions Re - 1' L, 3" 0D, Collar Locator - 2.5' L, 3.125 " OD, PX -1 Det - Housing ope Sock 1.5 t ' 1 L, L 3.125 OD, 3 -3/8" Perf Gun w/ 2 -5/8" Cores: Subs -26.5' L, 3.375" OD. (Overall Length 31.5') 1. 8,256' - 8,346' KB (Cut 89' Recvd 84') 2. 10,940'- 10,969' KB (Cut 29' Recvd 25.5') 3. 10,969'- 11,031' KB (Cut 62' Recvd 62') TD PBTD 11,953' MD 11,820 MD 8,367' TVD 8,234' TVD I Well Name & Number: Susan Dionne #4 Lease: Ninilchik Unit, ADL- 384372 Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 10,406' - 11,171' Perf (TVD): 6,821' - 7,585' Angle A KOP & Depth: 3° / 100 ft A 250' MD Angle Cu? Perfs: - 2° Date Completed: 3/18/2005 Ground Level: (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 8/10/2010 Marathon rnnRaiHON Alaska Production LLB August 11, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 n ~~~~, ~lJ%~ ~ per ~u~ Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Susan Dionne #4 Dear Mr. Aubert: Mar~n Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~,:,~< ~_ 2Q1CI ~l~~~a ~! ~ 6~a I;~s, CoRt~rniss ~1~i~~~r~aQe x,33 ai'.,~ Attached for your records is the10-404 Report of Sundry Well Operations for SD-4 well. Marathon was granted approval to reperforate SD-4 after installing several casing patches, to isolate infiltrating water, under Sundry # 307-348. Wellbore obstructions prevented us from installing all but the upper most patch and eliminated the need to reperforate. Water production reduction associated with the single patch was substantial. Rates were reduced from 447 bbls/day to 6 bbls/day. This report is being submitted at this time to help keep our notices/reports current even though the approved work has not been fully completed. Anew notice will be submitted when we are ready to progress with the proposed SD-4 well work. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~~~.~~ Kevin J. Skiba Regulatory Compliance Representative Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Current Well Schematic Kenai Well File Operations Summary KJS STATE OF ALASKA ALASKA~AND GAS CONSERVATION COMMISSI~ REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ InStaIl Casing Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ patch Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Alaska Production LLC Development 0 Exploratory^ ~ 204-233 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20547-00-00 7. Property Designation (Lease Number): ~ 8. Well Name and Number: ~ ADL-0384372 Susan Dionne #4 9. Field/Pool(s): Ninilchik Field / SD Tyonek Undefined Gas 11. Present Well Condition Summary: Total Depth measured 11,953' feet Plugs (measured) NA feet true vertical 8,367' feet Junk (measured) 11,300' feet Effective Depth measured 11,820' feet Packer(measured) 5,$73' feet true vertical g,234' feet (true vertical) 3,288' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 101' 20' 122' 122' 3,060 psi 1,500 psi Surface 1,830' 9-5/8" 1,851' 1,541' 5,750 psi 3,090 psi Intermediate 6,077' 7' 6,098' 3,397' 7,240 psi 5,410 psi Production 5,852' 4-1 /2" 5,873' 3,298' 8,440 psi 7,500 psi Liner 6,054' 4-1 /2" 11,927' 8,341' 8,440 psi 7,500 psi Perforation depth: Measured depth: 10,406' - 11,171' True Vertical depth: 6,821' - 7,585' Tubing (size, grade, MD &TVD): Tie-back 4-1/2" L-80 5,873' MD 3,298' TVD SSSV: NA - MD - TVD Packers and SSSV (type, MD &TVD): Packers: Baker 4-1/2" ZXP 5,873' MD 3,298' TVD 11. Stimulation or cement squeeze summary: Intervals treated (measured): Set casing patch across 10,116' - 10,140' MD perforation interval. 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 9,200 447 415 770 Subsequent to operation: 0 6,875 6 275 800 13. Attachments: 14. Well Class after work: ~ Copies of Logs and Surveys Run Exploratory ^ Development ^~ Service ^ r, Daily Report of Well Operations X 15. 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: 307-348 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Representative ~ ~ Signature ~ ~ Phone (907) 283-1371 Date August 11, 2010 v RB~S auc r s 2010 v~~ ~ ~r~ ~ o Form 10-404 Revised 7/2009 Submit Original Only pn O~tions Summary Report by Job eu-rwrriox ®DIIComp~ily Well Name: SUSAN DIONNE 4 Qtr/Qtr, Block, Sec, Town, Range 6006001S013W01 Field Name NINILCHIK SUSAN DIONNE License No. State/Province ALASKA Country USA Daily Operations Re ort Date: 11/10/2007 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU ASRC crane to remove well house. MIRU Expro to run 3.75"" GR and to set patch across perforations from 10458- 10472'. - ----- Start Time End Time Dur(hrs) Ops Code Ops Activity Code Status Trouble Code Comment 09:45 10:15 0.50 SAFETY MTG AF Conduct PJSM. Obtain SW Permit. Discuss ASRC JSA and conduct prelift meeting to remove well house. 10:15 10:45 0.50 RURD ELEC AF Remove well house from SD #4. _ 10:45 11:15 0.50 SAFETY MTG AF Conduct PSM, discuss Expro SA and job scope. 11:15 11:30 0.25 RURD ELEC AF Start and spot equipment. 11:30 12:30 1.00 RURD ELEC AF PU lubricator. MU tool string. 3.75"" OD GR. 12:30 12:55 0.42 TEST EOIP AF PTest lubricator to 3500 psi. 12:55 14:15 1.33 DRIFT CSG AF RIH w/ 3.75"" OD GR., junk basket, and CCL. 14:15 14:30 0.25 LOG CSG AF Run correlation pass. 14:30 15:00 0.50 RUNPUL ELEC AF Set down @ 10125' (in top set of perfs- 10116-10140'). Work tool in tight spot without making any hole. Stuck-cann't go up or down. 15:00 16:00 1.00 RUNPUL ELEC AF Pull tool free. POOH. 16:00 17:00 1.00 RURD ELEC AF RD. PTest tree cap connection. Check location. 17:00 17:30 0.50 RURD ELEC AF Turn in permit. Sign out. Leave location. Report Date: 4/1/2008 Job Cate o R&M MAINTENANC E 24 Hr Summary MIRU Pollard crane to remove well house. MIRU Pollard to run 3.72"" swage to 10,500'. Worked 3.72 "" swage thru tight spot @ 10114"" KB. RIH and work 3.80"" swage. ' SqR Time End Time ~ D ur (hrs) Ops Code Ops Activity Code j Statu~ Trouble Cade Comment 07:50 08:30 _ 0.67 SAFETY ' MTG AF Conduct PJSM. Obtain SW Permit. Discuss Pollard JSA and conduct prelift meeting to remove well house. 08:30 09:15 0.75 RURD SLIK AF Remove well house from SD #4. _ 09:15 10:00 0.75 RURD SLIK AF Spot equipment. Begin RU. 10:00 10:45 0.75 RURD SLIK AF PU lubricator. MU tool string. PU 5"" lubricator. PU 4"" braided line brush. 10:45 11:10 0.42 TEST EOIP AF PTest lubricator to 3000 psi. 11:10 11:45 0.58 RUNPUL SLIK AF RIH w/ 4 roller boogies and a 4"" braided line brush to 10,500'. Work thru 10,125'. Some drag thru pert interval @ 10116-10140', but not bad. 11:45 12:25 0.67 RUNPUL SLIK AF POOH. 1000 Ibs of drag on bottom. 12:25 12:35 0.17 TEST EOIP AF OOH. Bleed lubricator. PU 3.80"" fluted swage. Test OTS. 12:35 13:25 0.83 DRIFT CSG AF RIH w/ 3.80"" OD fluted swage. Set down in ZXP Liner packer @ 5873'. PU and drop thru. RIH set down @ 10,114' KB'. Stuck. Jar loose. Set back down. Work tools. Jar out again. POOH to check for metal marks on tools. 13:25 13:45 0.33 RUNPUL SLIK AF POOH. _ 13:45 14:00 0.25 RURD SLIK AF OOH. Bleed lubricator. Metal marks 180 degrees around swage @ 3.68"" OD. PU 3.72"" swage. 14:00 14:25 0.42 RUNPUL SLIK AF RIH w/ 3.72"" Swage. 14:25 14:30 0.08 RUNPUL SLIK AF Tag @ 10114' KB. Work this area. Tap down and fall thru . Work up and work down thru this area. RIH to 10500. 14:30 14:50 0.33 RUNPUL SLIK AF PUH slowly. Pull thru tight spot at 10114' KB w/ no overpull. 14:50 15:10 0.33 RUNPUL SLIK AF POOH. 15:10 15:20 0.17 TEST EOIP AF OOH. PU 3.80"" swage. Test OTS. 15:20 15:40 0.33 RUNPUL SLIK AF RIH w/ 3.80"" fluted swage. 15:40 16:30 0.83 RUNPUL SLIK AF Tag @ 10117' KB. Work tools in this area. Sticky. Use jars to get swage unstuck. Twice. POOH to check tools for marks. 16:30 17:10 0.67 RURD SLIK AF OOH. RD. PTest tree cap connection. 17:10 17:30 0.33 RURD SLIK AF Return well to production. Continue RD. Send swage to be turned down to 3.75"". Will fabricate new 3.82"" OD tapered swage. 17:30 17:45 0.25 SECURE WELL AF Secure well and location. Turn in permit. Sign out. Leave location. Report Date: 4/2/2008 Job Category: R&M MAINTENANC E 24 Hr Summary MIRU Pollard to run 3.75"" swage to 10,500'. -- - - - _- - -- - - _ Ops ', Trouble Start Time End Time Dur hrs) ' Ops Code Activity Code Status Code Comment 07:50 08:30 0.67 SAFETY MTG AF Conduct PJSM. Obtain SW Permit. Discuss Pollard JSA and associated hazards. 08:30 09:05 0.58 RURD SLIK AF PU lubricator. MU tool string. PU 5"" lubricator. PU 4"" braided line brush. www.peloton.com Page 1/11 Report Printed: 8/10/2010 ~ O~ations Summary Report by Job • xwaarxor ®DIICOmpan'y Well Name: SUSAN DIONNE 4 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 135.00 156.00 21.00 12/9/2004 9/30/2008 _ - Start Tune End Time Dur (hrs) O' Code Ops Activity Code ~ Status 'I :Trouble Code -- - Comment 09:05 09:20 0.25 TEST EOIP AF - - PTest lubricator to 3000 psi. 09:20 10:00 0.67 RUNPUL SLIK AF RIH(1) w/ 4 roller boogies and a 4"" braided line brush to 10,500'. Work thru to 10,500' WLM. 10:00 10:10 0.17 TEST EQIP AF OOH. Bleed lubricator. PU 3.75"" fluted swage. Test OTS. 10:10 11:25 1.25 DRIFT CSG AF RIH(2) w/ 3.75"" OD fluted swage. RIH set down @ 10,114' KB'. Work tools. Tap down. Stuck. Jar loose. Tap down. Work tools. Jar out again. Tap down. Drop thru. RIH to 10521' KB. PUH. Hammer up. Jar UH. Repeat-working down thru again. Jar UH. POOH to cut wire and add more stem. 11:25 11:45 0.33 RUNPUL SLIK AF POOH. 11:45 12:40 0.92 RURD SLIK AF OOH. Bleed lubricator. Cut 100' of wire. Rehead. Add 5' stem and dress 3.75"" OD swage. 12:40 13:05 0.42 RUNPUL SLIK AF RIH(3) w/ 3.75"" Swage. 13:05 14:25 1.33 RUNPUL SLIK AF Tag @ 10118' KB. Work this area. Tap down and fall thru . Work up and work down thru this area. Appears to be two tight spots 10114' and 10118'. Continue tapping down thru and jarring back up thru tight spots. Initially it takes one jar lick to pull back up thru, but the more we work the area, the more jar licks it takes to hammer back up thru. Tapping down thru is not getting any easier, either. 14:25 14:45 0.33 RUNPUL SLIK AF POOH. Fluid level approx. 9500'. 14:45 14:55 0.17 TEST EQIP AF OOH. PU 3.72"" swage. Test OTS. 14:55 15:25 0.50 RUNPUL SLIK AF RIH(4) w/ 3.72"" fluted swage to 10138' KB. Make several passes. See little bump at 10116' KB. 15:25 15:40 0.25 RUNPUL SLIK AF POOH 15:40 16:40 1.00 WAITON EQIP TA At 5400', broke drive coupler chain on wireline unit. Install wireline clamp on wire. Repair unit. 16:40 17:10 0.50 RUNPUL SLIK AF POOH. 17:10 17:40 0.50 RURD SLIK AF RD. Slip/cut 100' of wire. Change packing in stuffing box. 17:40 18:00 0.33 RURD SLIK AF Return well to production. Continue RD. 18:00 18:30 0.50 SECURE WELL AF Secure well and location. Turn in permit. Sign out. Leave location. Daily Operations Report Date: 4/3/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary Pollard swaging 4-1/2"" casing to 10,500'. Start Time End Time pur hrs ( ) 0 s Code P Ops Trouble _Activit Code Status Code , Y _ Comment 07:50 08:30 0.67 SAFETY _ _ MTG AF Conduct PJSM. Obtain SW Permit. Discuss Pollard JSA and associated hazards. 08:30 08:45 0.25 RURD SLIK AF PU lubricator. MU tool string. PU 5"" lubricator. PU 3.75"" swage. 08:45 09:00 0.25 TEST EQIP AF PTest lubricator to 3000 psi. 09:00 10:00 1.00 DRIFT CSG AF RIH(1) w/ 3.75"" OD fluted swage. RIH set down @ 10,115' KB'. Work tools. Tap down six times-fall thru. Stuck. Jar 1 time-pull free. Tap down six times-fall thru. Jar up once, spang free again. Tap down. Drop thru. Hammer up. Jar up twice-spang free. 10:00 10:20 0.33 RUNPUL SLIK AF POOH. 10:20 10:35 0.25 RURD SLIK AF OOH. Bleed lubricator. PU 3.75"" LIB. Test OTS. 10:35 10:50 0.25 RUNPUL SLIK AF RIH(2) w/ 3.75"" LIB. 10:50 11:05 0.25 RUNPUL SLIK AF Tag @ 10118' KB. Tap down twice. Popped thru tight spot. POOH. 11:05 11:10 0.08 TEST EOIP AF OOH w/ 3.75"" LIB. Severe gash on edge of LIB from 3.5"" OD to outer edge. Radial cut at one end of gash similiar to torn tubing. Ragged. Perhaps flow cut. CBL indicates a collar @ 10115' - 10119'. PU 3.82"" swage. Test OTS. 11:10 12:45 1.58 RUNPUL SLIK AF RIH(3) w/ 3.82"" fluted swage to 10115' KB. Work tools hard-driving down. Jarring 6 licks to pull out of tight spot. Hammer down again. Stuck. Jar free with 7licks jarring. 12:45 13:15 0.50 RUNPUL SLIK AF POOH to check tools. 13:15 13:25 0.17 TEST EOIP AF OOH. Bleed lubricator. Check tools for metal marks. Heavy scuffing on swage. Indications of metal rolling on swage. Test QTS. 13:25 14:25 1.00 RUNPUL SLIK AF RIH(4) w/ 3.82"" fluted swage to 10115' KB. Work down to 10118'KB. Work tools. Couldn't pass. Start to beat up until unit broke. 14:25 15:00 0.58 WAITON EQIP TA W/L unit broke an a tension adjustment bolt. Shut down to fix it. www.peloton.com Page 2/11 Report Printed: 8/10/2010 ~ O~ations Summary Report by Job ,waann+or ®OiIC:1~1r1pa~/ Well Name: SUSAN DIONNE 4 Start Time End Time Dur (hrs) Ops Cade Ops Activity Code i Status Trouble Code ~ Comment i 15:00 15:05 0.08' RUNPUL SLIK TA --_ - _ Swage stuck. Attemp to spang out 15:05 19:00 3.92 RUNPUL SLIK TA Jarring. Jar down move a foot. Jar back up. Getting good licks( 200-3001bs). 19:00 20:10 1.17 RUNPUL SLIK TA WHP 1650 psi. Ask production operator to flow well at 1 MMscf inorder to decrease pressure above swage and to get some fluid movment past swage. Continue jarring. Increase flow rate to 2 MMscf. 20:10 23:05 2.92 RUNPUL SLIK TA WHP decrease to 1200 psi. Jarring at 10099'. Increase flow rate to 3 MMscf. Still jarring up. Shut well in and jar down-maybe a foot of movement 23:05 23:11 0.10 RUNPUL SLIK TA Discuss dropping cutter bar. Want best choice, with highest probability of reaching tool string in 65 degree deviated hole. 23:11 23:36 0.42 RUNPUL SLIK TA Close W/L BOP's. 23:36 23:45 0.15 RUNPUL SLIK TA Bleed lubricator. Walk lubricator up to give clearance to install cutter. 23:45 00:05 0.33 RUNPUL SLIK TA Arm Kinley cutter and install on wire. 00:05 00:13 0.13 RUNPUL SLIK TA Pressure lubricator to 1000 psi. Equalize pressure across BOP's. 00:13 00:51 0.63 RUNPUL SLIK TA Open BOP's and drop cutter. Hear it fall thru the tree. Pull tension and work wire. 00:51 01:45 0.90 RUNPUL SLIK TA Cutter went off-loose weight. POOH. 01:45 02:30 0.75 RURD SLIK TA Rig down. Leave well shut in. 02:30 03:00 0.50 SECURE WELL TA Secure well and location. Turn in permit. Sign out. Leave location. 03:00 03:05 0.08 TA 1-3/4"" Tool string left in the hole-Rope socket, knuckle joint, roller boogie, 10' of stem, knuckle joint, roller boogie, 5' of stem, knuckle joint, roller boogie, oil jars, spang jars, roller boogie, roller boogie, 3.813"" swage Daily Operations Report Date: 4/5/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary Pollard fishing stuck 1-3/4"" tool string. First run is 3.75"" LIB. Wire and sand marks on LIB. Flow well to lift sand. Re-run LIB. - Start Time ', End Time Dur (hrs) - - Ops Code - Activity Code Ops Status ! Trouble Code. - -- Comment 07:50 08:30 0.67 --_ SAFETY MTG AF - __ Conduct PJSM. Obtain SW Permit. Discuss Pollard JSA and associated hazards. 08:30 09:10 0.67 RURD SLIK AF MU 2-1/8"" tool string. PU 3.75"" LIB. 09:10 09:40 0.50 RURD SLIK AF PU lubricator. PU 5"" lubricator. 09:40 10:15 0.58 TEST EOIP AF PTest lubricator with low pressure gas. Wireline BOP leaks. Repair o-rings on BOP stem. 10:15 10:35 0.33 TEST EOIP AF PTest lubricator w/ low pressure gas. Test lubricator to 3000 psi. Test good. 10:35 11:20 0.75 RUNPUL SLIK AF RIH (1) w/ 3.75"" OD LIB. RIH set down @ 10,058' wlm. Bump twice. Fluid level approx 9700'. 11:20 11:40 0.33 RUNPUL SLIK AF POOH. 11:40 12:05 0.42 RURD SLIK AF OOH. LIB shows wire markings across face and two sides. It also shows traces of sand. Discuss w/ Wayne and decide to flow well to clean up and rerun LIB. LIB shows same abraided edge and radial tear that we saw two days ago. So we concluded that it was happening passing thru ZXP Packer-NOT damage in casing @ 10116' KB. Test OTS. 12:05 13:17 1.20 FLOW TEST AF Flow well. Initial WHP 1750 psi. Finial WHP 900 psi. 13:17 13:45 0.47 RUNPUL SLIK AF RIH (2) w/ 3.75"" LIB. 13:45 14:05 0.33 RUNPUL SLIK AF POOH. 14:05 14:13 0.13 RURD SLIK AF OOH. LIB shows fishing neck. NO trace of sand. _ 14:13 14:30 0.28 RUNPUL SLIK AF RIH (3) w/ Camco JDC. 14:30 15:00 0.50 JAR FISH AF Tag fish @ 10058' wlm. Latch fish. Jar. Slip off fishing neck. Got one good jar lick w/o slipping off. Slipped off four times. Did not see second set of jars hitting. Could see second set of spangs. I 15:00 15:15 0.25 RUNPUL SLIK AF POOH to check JDC. ' 15:15 15:50 0.58 TEST EOIP AF OOH. Check JDC. Pin sheared in JDC. Metal marks showed we were getting beside fishing neck. Repin JDC and install knuckle joint above. Test OTS. 15:50 16:05 0.25 RUNPUL SLIK AF RIH (4) w/JDC. 16:05 17:20 1.25 JAR FISH AF Set down on fish. Latch onto fishing neck. PU See both sets of spanges. Jar up 18 times getting good licks(300-400 lbs.) No movement. 17:20 17:35 0.25 JAR FISH AF Jar down. Shear off. POOH. www.peloton.com Page 3/11 Report Printed: 8/10/2010 -- ~ O~ations Summary Report by Job • ,Y,aM ®QjtCp~y~ny Well Name: SUSAN DIONNE 4 Siact Time Pnd Time Dur (hrs) Ops Cade Ops Activity Code I Status i Trouble Code Comment ~ 17:35 18:00 0.42 RURD SLIK AF OOH. Bleed lubricator. Cut wire. Get ready for morning. 18:00 18:50 0.83 RURD SLIK AF Rehead. LD lubricator. 18:50 19:00 0.17 SECURE WELL AF Secure well. Turn in pemit and leave loc. Daily Operations Re ort Date: 4/6/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary PU PWS fish 1-3/4"" tool string. MU 2.5""JDC with split skirt. RIH latch fish. Work tool string. Came off after a fewjar licks. POOH. Found JDC skirt cracked. MU full skirt on JDC. Add 5' 2.5"" stem. RIH latch fish work tools hard. Shear off. RD Start Time End Time Dur (hrs) Ops Code j Activity Code Ops Status Trouble Code Comment 08:00 08:20 0.33 SAFETY MTG AF Obtain permit, held PJSM. 08:20 10:55 2.58 RURD SLIK AF MU 2.5"" tool string w/ 2.5""JDC. PT to 2300 psig. Good test. Open well. WHP = 1800 psig. RIH to latch fish @ 10079' KBD. Tagged fluid level at 9000'. Made a couple of attempts. Latched fish. Work tool string. 10:55 12:35 1.67 RURD SLIK AF Tools came free. POOH with tool string. Checked tools, found broken skirt on JDC. MU JDC with a full skirt 12:35 13:15 0.67 TEST EOIP AF PU tools and go to well. PT connection with quick sub. Open well. RIH with JDC. Latch fsih. Work jars. After couple of jar licks. Jars started getting week. Possible gassed up. Shear off of fish. POOH wtih tool string. 13:15 14:00 0.75 TEST EOIP AF OOH, Rebuilt oil jars. Added bell guide to bottom of JDC. RIH with same. Latched fish. Work tool string. 14:00 15:10 1.17 RURD SLIK AF Tool string fish has no movement. After jarring for over an hour with 300 Ib jar licks. Had wire line operator shear off of fish. POOH 15:10 18:00 2.83 SECURE WELL AF OOH with tool string. RD wire line unit. Discussed Rig down portion of JSA with crew. Cleaned up around well head. Verified tree cap was not leaking. Well remains shut in. Report Date: 4/18/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU 1/4"" braided line hammer unit and ASRC Crane. i Start Time_ ----- End Time _ 1 --- ~ Dur (hrs O Code Activi Code ~ StOatus ty TCodee Comment _ i 18:30 18:45 0.25 SAFETY MTG AF Obtain ermlt, held PJSM. p 18:45 20:30 1.75 RURD SLIK AF Unload skid unit and crane. Spot equipment. RU 1/4"" braided line hammer unit and lubricator. 20:30 21:00 0.50 RURD SLIK AF Turn in permit. Sign out and leave loc. Re ort Date: 4/19/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary PU lubricator and tool string w/ 2.75"" Heavy service JDC. RIH w/ 1/4"" braided line. -- Ops ~' Trouble _. Start Time End Time Dur (hrs) Ops Code Adiwty Code j Status. Code Comment 08:00 09:00 1.00 SAFETY MTG AF Obtain permit, held PJSM. Discuss Pollard JSA, alarms and muster area. 09:00 09:55 0.92 RURD SLIK AF Finish rigging up hammer unit. PU 3-1/2"" and 4-1/2"" lubricator. MU 2.5"" tool string w/ 2.75"" Heavy service JDC. 09:55 11:00 1.08 TEST EOIP AF PTest lubricator w/ WHP. Needle valve open. Test again. O-ring leaking. Replace o-ring. Ptest lubricator to 2500 psi. Test good. 11:00 14:00 3.00 RUNPUL SLIK Shut in well. RIH w/ 2.75"" Heavy service JDC. New braided line so it is neccessary to condition line while RIH. Run in 1000'- POOH 200'. 14:00 14:56 0.93 RUNPUL SLIK AF Tag fish at 10058'. Latch fish. Work jars hitting 5200# licks. Both sets of '. jars are hitting. 14:56 15:20 0.40 RUNPUL SLIK AF Increase jar licks to 6200# on 2.5""jars. Both sets of jars still hitting. Tool string fish has no movement. 15:20 16:00 0.67 RURD SLIK TA Unit stuck in gear between 2nd and 3rd. Repair unit. 16:00 16:15 0.25 RUNPUL SLIK AF Unit repaired. Hit a few more jar licks. 16:15 17:00 0.75 RUNPUL SLIK AF Jar down to shear of fish. POOH. 17:00 18:20 1.33 RURD SLIK AF RD unit. Cut 50' of line. RD for the night. _ 18:20 18:30 0.17 SECURE WELL AF Turn well over to production. Turn in permit. Sign out and leave loc. Report Date: 4/22/2010 Job Cate o R&M MAINTENANCE _ 24 Hr Summary Fish Lost Tool String, retrieve fish www.peloton.com Page 4/11 Report Printed: 8/10/2010 M ~ O~ations Summary Report by Job Nu-RnrxoN ~OiIC:~~I'1'/ Well Name: SUSAN DIONNE 4 Start Time End Tfine ~ Dur (hrs) ~ Ops Code II Activity Cade Ops Status Trouble Code - - ' -- _ _- ' Comment 06:00 14:00 8.00 RUNPUL SLIK Rig up Pollard Slickline Pressure test lubricator to 2500PSI-good RIH with 2.75" Bell Heavy Service JDC to 10047ft BLM, strated hitting jar lick, chain broke chain fixed, Start hitting jar lick again, fish came free, moved 200' up hole. hung up, came free, POOH with RS, KJ, RB, KJ and 10' stem, Rebuild heavy service RIH, latch fish with 10001b overpull, rest of fish is free, POOH-have rest of fish RDMO Daily Operations Re ort Date: 5/24/2008 Job Category: R8:M MAINTENANCE 24 Hr Summary Run Side view camera t_o investigate ID problem at 10,116'. Unable to see with well flowing. Unable to see with well shut in. Start Time End Time Dur hr's) Ops Cade Ops Activity Code ! Status Trouble Code Comment 08:00 09:00 1.00 SAFETY MTG AF Hold pre job safety meeting. Discuss Expro JSA, job details, and manlift safety. 09:00 10:30 1.50 RURD ELEC AF Spot and rigup eline unit. Stab on well. 10:30 11:00 0.50 TEST EQIP AF Pressure test lubricator to 3000 psi with water. 11:00 12:30 1.50 RUNPUL ELEC AF RIH with surface readout side view /down view camera. Observe video while RIH 12:30 14:30 2.00 LOG CSG AF Loc casing and try to see perfs and collar at 10,116'. Unable to see due to I;arge amounts of water flowing. 14:30 14:45 0.25 LOG CSG AF Shut in well to try and see problem. When water covered camera it was too dirty to see. 14:45 16:00 1.25 RUNPUL ELEC AF POH. Fluid level at 7500' and rising. 16:00 16:45 0.75 RURD ELEC AF Rig down eline unit 16:45 17:00 0.25 SECURE WELL AF Secure well, turn in permit and leave location. Report Date: 6/7/2008 Job Cate o R&M MAINTENANC E 24 Hr Summary Ran dummy caliper and Kinley caliper to 10,547' ELMD. Good data recovery. __ Start Time End Time '~, Dur (hrs) ~ Ops Code ~ Ops Activity Code ~I Status Trouble;... Code Comment 08:00 08:45 0.75 SAFETY MTG AF Hold PJSM. Discuss Expro JSA, issue permit and assign tasks. 08:45 10:00 1.25 RURD ELEC AF Spot and RU unit. PU caliper dummy. 10:00 10:15 0.25 TEST EQIP AF Test lubricator to 3000 psi with water. Good test. 10:15 12:15 2.00 RUNPUL ELEC AF RIH with dummy caliper. Tie in at 10,550' and POH. No problems on dummy run. 12:15 13:00 0.75 RURD ELEC AF LD dummy and PU caliper. 13:00 13:15 0.25 TEST EQIP AF Test quick test sub. 13:15 15:00 1.75 RUNPUL ELEC AF RIH with 15 arm Kinley caliper. 15:00 16:30 1.50 LOG CSG AF Log with Kinley 15 arm caliper from 10,447' to 5,800'. No problems 16:30 17:30 1.00 RUNPUL ELEC AF POH with caliper. 17:30 18:30 1.00 RURD ELEC AF Checik caliper. No damage and good data recovery. Rig down eline unit 18:30 19:00 0.50 SECURE WELL AF Secure well. Close and turn in permit and leave location. Re ort Date: 7/4/2008 Job Cate o R&M MAINTENANC E 24 Hr Summary Ran 60 fpm, 90fpm, and 120 fpm PLT passes from 10000' to 11300'. Ran shut in passes at 1, 2, and 4 hours shutin time __ _- p , ~, O s Trouble ' Start Time End Time ~', Dur (hrs) Ops Code Activity Code Status Code Comment 07:00 08:15 1.25 SAFETY MTG AF Arrive on location. Issue permit, hold PJSM, discuss JSA and considerations of working on live well. 08:15 09:15 1.00 RURD ELEC AF RU eline unit for full PLT with fullbore spinner, P, and T. 09:15 09:30 0.25 TEST EQIP AF Test lubricator to 3000 psi with water. 09:30 10:45 1.25 RUNPUL ELEC AF RIH with PLT string 10:45 11:30 0.75 LOG CSG AF Log PLT from 10000 - 11300 and back to 10000' at 60 fpm. 11:30 12:15 0.75 LOG CSG AF Log 90 fpm passes up and down 12:15 13:00 0.75 LOG CSG AF Log 120 FPM passes down and up 10,000' - 11,300'. 13:00 14:30 1.50 LOG CSG AF Shut in well and log 1 hour shut in temperature pass from 10,000' to 11,300'. 14:30 15:30 1.00 LOG CSG AF Log 2 hour shut in temperature pass from 10,000' to 11,300'. 15:30 17:30 2.00 RURD ELEC AF Log 4 hour shutin temperature pass from 10,000' to 11,300'. www.peloton.com Page 5/11 Report Printed: 8110/2010 M Marathpn O~ations Summary Report by Job• Mnaarrior ®OiIC:Ompslly Well Name: SUSAN DIONNE 4 -- - , - OPs Trouble - _..- _._._-_-__- _.__-- Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 17:30 19:00 1.50 RUNPUL ELEC AF _ POH. 19:00 21:00 2.00 RURD ELEC AF Rig back unit to make shut in pass in AM. Well remains shut in for the night. 21:00 21:00 Daily Operations Re ort Date: 7/5/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary Ran a shut in temp_pass from 10,000_' - 11300'. SIWHP = 1629 psi Start Time End Tim__e Dur (hrs) '' Ops Code Activity Code Ops Trouble Status Code I Comment 06:00 06:30 0.50 SAFETY MTG AF _ Hold PJSM and issue permit. Discuss JSA and shut in well pressure. 06:30 07:45 1.25 RURD ELEC AF Stab on well and RIH. Caught fluid level at 9390'. 07:45 08:00 0.25 LOG CSG AF Logged Temp /Press from 10,000' to 11,300'. 08:00 09:00 1.00 RUNPUL ELEC AF POH PT tools 09:00 10:00 1.00 RURD ELEC AF RD eline truck and release Expro. Close permit and leave location. Report Date: 8/28/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU Pollard to swage tight spots. Start Time i End:Tiroe Dur (hrs) Ops Code Ops ActivQy Code I Status Trouble Code ~ Comment ~~ 08:00 09:00 1.00 SAFETY MTG AF _ _ Hold PJSM. Discuss alarms, muster area, and emergency response. Discuss Pollard JSA and specific job hazards. Make job assignments. Obtain SWP. 09:00 10:48 1.80 RURD SLIK AF Spot equipment. RU slick-line unit. PU lubricator and BOP's. Cut wire (.140"). Re-tie rope socket. MU tool string- rs,kj, rb, 1-3/4" stem, rb, kj, rb, oj, rb, rsj, rb, 1' stem, kj,rb, 3.72" swage.. 10:48 11:18 0.50 TEST EOIP AF Carry lubricator to WH. PTest lubricator to 2500 psi. Test good. 11:18 12:33 1.25 RUNPUL SLIK AF RIH (1) w/ 3.72" swage. PU wt. 1175 Ibs @ 10050'. Set down in tight spot @ 10,120' KB. Spange once and pull free. Set down again. Stuck. Attemp to spang out. Jar free with one jar lick. POOH to PU smaller swage. OOH. Metal marks 360 degrees around outer edge on the ramp of swage (approx. 3.68" OD.) 12:33 14:18 1.75 RUNPUL SLIK AF RIH (2) w/ 3.68" swage. Set down @ 10,120'. Stuck. 1 spang lick pull free. Tap down 3 times. Stuck. 1 jar lick pulls free. Tap down 6 times. Stuck. 1 jar lick pulls free. Tap down harder 5 times. Stuck. 4 jar licks to pull free. POOH to check swage. Metal marks around circumference of swage up on shoulder. Almost worked it thru tight spot. 14:18 16:06 1.80 RUNPUL SLIK AF RIH (3) w/ 3.68" swage. Set down in tight spot. Pull free. Tap down 10 times. 5 jar licks, pulls free. Set down. Tap down 10 times. 4 jar licks and spangs free. Set down. 10 taps down. 5 jar licks, pulls free. Work tools for an hour. POOH to check swage. Metal marks on outer circumference-up to top edge of flat section. Almost broke thru. 16:06 17:06 1.00 RURD SLIK AF RD slick line unit for the night.. LD lubricator and tool string. Install tree cap and PTest. Test good. Pull tool string out of lubricator and check for tightness. All joints tight. 17:06 17:18 0.20 SECURE WELL AF Secure well head and location. Turn in permitt. Sign out and leave loc. Report Date: 8/29/2008 Job Category: R&M MAINTENANCE 24 Hr Summary MIRU Pollard to swage tight spots. Starting w/ 3.66" swage this morning. ._-- T - _ - - - - Ops Trouble Start Time End Time Dur_ (hrs) ~ Ops Code Activity Code Status. Code ~ Comment 08:00 09:00 1.00 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discuss Pollard JSA and specific job hazards. Make job assignments. Obtain SWP. 09:00 09:42 0.70 RURD SLIK AF RU slick-line unit. PU lubricator and BOP's. MU tool string- rs,kj, rb, 1-3/4" stem, rb, kj, rb, oj, rb, rsj, rb, 1' stem, kj,rb, 3.66" swage. 09:42 09:54 0.20 TEST EOIP AF Carry lubricator to WH. PTest lubricator to 2500 psi. Test good. 09:54 11:00 1.10 RUNPUL SLIK AF RIH (1) w/ 3.66" swage. PU wt. 1050 Ibs @ 10050'. Drop thru tight spot with hadly a bobble. RIH to 10,500. No other obstructions. POOH to PU 3.68" swage. OOH. www.peloton.com Page 6/11 Report Printed: 8/10/2010 ~g~pn O~ations Summary Report by Job• ,utwm,oN ~Qj1(;p~1p~1y Well Name: SUSAN DIONNE 4 '..Start Time i, End Time --- - Du[ (hrs) j Ops Code - O s Actiw~y mod? ~ Status Trouble Code ~, Comment ~' 11:00 14:30 3.50 RUNPUL SLIK AF RIH (2) w/ 3.68" swage. Set down @ 10,120'. PU wt. 950 Ibs @ 10050'. Set down. Tap down 15 times. 1 jar lick pulls free. Tap down 20 times. Stuck. 4 jar lick pulls free. Tap down harder 15 times. Stuck. 3 jar licks to pull free. Set down. Tap down 15 times. 3 jar lick pulls free. Tap down 15 times. Stuck. 5 jar lick pulls free. Tap down harder 15 times. Stuck. 4 jar licks to pull free. Work tools for 1-1/2 hours. POOH to check swage and cut wire.. Metal marks around circumference of swage on ramp and up on shoulder. Very uniform markings except for one deep gouge. Almost worked it past top of swage. 14:30 17:00 2.50 RUNPUL SLIK AF RIH (3) w/ 3.68" swage. Set down in tight spot. Tap down 20 times. 5 jar licks, pulls free. Set down. Tap down 16 times. 4 jar licks and come free. Set down. 20 taps down. 2 jar licks, pulls free. Tap down 20 times. 6 jar licks, pulls free. Set down. Tap down 20 times. 6 jar licks and come free. Set down. 20 taps down. 3 jar licks, pulls free.Work tools for an hour and a half.. POOH to check swage. Metal marks on outer circumference-up to top edge of flat section. Almost broke thru. 17:00 18:00 1.00 RURD SLIK AF RD slick line unit for the night.. LD lubricator and tool string. Install tree cap and PTest. Test good. Pull tool string out of lubricator and check for tightness. All joints tight. 18:00 18:12 0.20 SECURE WELL AF Secure well head and location. Turn in permitt. Sign out and leave loc. Daily Operations Report Date: 8/30/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary MIRU Pollard to swage tight spots. Starting w/ 3.68" swage this morning. Exchanging one section of 2" stem w/ a section of 2.3" OD. -- Ops Troutite :Start Time End Time Dur (hrs) Ops ('.ode Activity Code ~ Status Code Comment - -- -- - 08:00 09:00 1.00 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discuss Pollard JSA and specific job hazards. Make job assignments. Obtain SWP. 09:00 09:45 0.75 RURD SLIK AF RU slick-line unit. PU lubricator and BOP's. MU tool string- rs,kj, rb, 5' x 2-1/8" stem, 5' x 2.3", 5' x 2" stem rb, kj, rb, oj, rb, rsj, rb, 1' stem, kj,rb, 3.66" swage. 09:45 09:57 0.20 TEST EOIP AF Carry lubricator to WH. PTest lubricator to 3000 psi. Test good. 09:57 12:27 2.50 RUNPUL SLIK AF RIH (1) w/ 3.68" swage. PU wt. 1050 Ibs @ 10070'. Set down @ 10121'. Tap down 5 times. Jar (1) out w/ 1 lick. Tap down 15 times. Jar (2) 3 licks-pull free. Tap down 15 times. Jar(3) 6 licks- pull free. Tap down 15 times. Jar(4) 5 licks to pull free. Tap down 15 times more. Jar (5) 4 licks to pull free. Tap down 15 times. Jar (6) 7 licks to pull free. Swage and jar for 1 hr-15 minutes. Not able to punch thru tight spot. POOH to PU 3.67" swage. OOH. No deep gouges on swage. Metal marks are inconclusive. 12:27 15:15 2.80 RUNPUL SLIK AF RIH (2) w/ 3.67" swage. Set down @ 10,120'. PU wt. 950 Ibs @ 10050'. Set down. Tap down 6 times. Fall thru. Jar up once and pull thru. Work tools for two hours tapping down thru and jarring back out. Doesn't seam to get any easier with time. POOH. 15:15 16:15 1.00 RURD SLIK AF RD slick line unit. LD lubricator and tool string. Install tree cap and PTest. Test good. 16:15 16:27 0.20 SECURE WELL AF Secure well head and location. Turn well over to production. Turn in permit. Sign out and leave loc. Report Date: 10/1/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary BOP test, shell test and displace coil with fluid. - _ Ops Trouble - - Start Time End Time Dur (hrs) pps.Code Activity Code Status Code .Comment 09:00 10:00 1.00 SAFETY MTG AF __ Held PJSM, Optained work permit, discussed job for day and safety hasardous around well head. 10:00 16:00 6.00 RURD COIL AF Set tanks, mixed KCL, set coil unit, crane and hard line around well. 16:00 18:00 2.00 RUNPUL COIL AF Test BOP, good test, rig back coil unit for AM start. Re ort Date: 10/2/2008 Job Ca_t_egory: R&M MAINTENANCE 24 Hr Summary RIH with motor and mill to 10120' to clean up tight spots in tubing to set a patch. www.peloton.com Page 7/11 Report Printed: 8/10/2010 O#ations Summary Report by Job xtnanniox ®Oi1CArr~pany Well Name: SUSAN DIONNE 4 -- - OPs Trouble Start Time - End Time Dur (hrs) qpg Code - Activi Code ' Status °- Code Gomment 09:00 10:00 1.00 SAFETY MTG AF - - _ Held PJSM, Optained work permit, discussed job for day and safety hasardous around well head. 10:00 11:00 1.00 RURD COIL AF PU injector, cut coil MU 1 3/4" coil connector to end of coil. Add 20' additional lubricator. Pull test coil connector to 20K. Good test. 11:00 12:00 1.00 RURD COIL AF MU BHA consisting of the following CC, dual flapper BPV, haydrulic disconnect, dual cir sub, 2 7/8" extreme motor with string mill with a step mill tappered to 3.8" OD ring gauge. Go to well with BHA. Shell test to 4500 psig. 12:00 15:00 3.00 WORK COIL AF Open well. WHP= 1090 psig, 4.2 MMCFPD, 520 BPDW. Pump through coil, verified pump is working. Open well, RIH with coil. Coil at 2600' problem with oiler, fix problem continue in well with tappered mill. 15:00 16:00 1.00 WORK COIL AF Coil at 10, 000' CTM. PIR at min = 0.3 BPM. WHP= 745 psig. Total 60 bbls pumped 16:00 17:00 1.00 WORK COIL AF Tagged up at 10108' CTM. PUH to 10900', increase PIR to 2.5 BPM, RIH with mill to 10100', WHP= 740 psig, PIP= 4700 psig. Stalled motor PUH with coil. PUW= 30 K. Coil @ 10093'. RIH with coil. Coil at 10103' CTM stalled -shut down pump. PU hole with coil to 10090', RIH with coil, motor stalled. Shut down pump, Pick up hole coil stuck - PU 36 K. 17:00 18:00 1.00 WORK COIL AF RIH to 10096' CTM. Varied pump rate, coil still stuck. S/D pump, PU coil = 40 K, open well to flow back tank. WHP= 400 psig. RIH with coil to 10097.3' CTM. PIP= 2206 psig, PIR = 1.5 BPM. PU coil came free. Pull up hole to 10050' CTM. Increased PIR= 1.75 BPM. Pumped 120 bbls total down well. No returns. 18:00 19:00 1.00 WORK COIL AF PU coil to 10029', no issues, RIH with coil PIP= 4700 psig, PIR =2.0 BPM. Continue running in hole with mill. Coil at 10092.8' CTM. PIP=4791 BPM.. PIR @ 2.0 BPM. 250 bbls pumped, no returns. 19:00 20:00 1.00 WORK COIL AF Coil down to 10101' Stalled motor. Shut down pump. PU coil. Pulled tight but did not stick up to 10094' CTM. RIH to 10101.3 CTM stalled motor. Shut down pump, PU hole with coil to 10094' CTM. 20:00 21:00 1.00 WORK COIL AF RIH with no motor turning tagged dry at 10103.1' CTM. PUH to 10098' Start pump at 2.0 BPM. RIH with coil. PIP= 4549 psig. Coil at 10101.2' Stalled motor. Shut down pump, PU coil to 10094' CTM. Decreased PIR = 1.5 BPM. PIP= 2480 psig. RIH to 10101.8' pump stalled. PUH to 10093' CTM. No progress. Changed rate to 1.0 BPM, RIH stalled @ 10101.8' CTM. No progress. POOH with coil 21:00 22:00 1.00 WORK COIL AF Coil @ 9500' CTM, chain on counter broke shut down to fix. Continue OOH with coil unit. WHP= 0 psig. Total fluid lost to well = 330 bbls. 22:00 00:00 2.00 WORK COIL AF Coil counter was not working wihile draging the coil to surface. Coil at surface, break out the Baker mill & motor. Layed down lubricator, injector and secured well. Cleaned up around well head. BJ left lease. Daily Operations Report Date: 10/3/2008 Job Cate o R8~M MAINTENANCE 24 Hr Summary RIH with motor and smaller 3.75" tappered mill to 10120' to clean up tight spots in tubing to set a patch. - - r i __ Qps - Trouble Start Time _~._ End Time .- Dur (hrs) - Ops Code ! Activit Code Status Code Comment 10:00 11:00 1.00 SAFETY MTG AF _ _ _ _ Held PJSM, Optained work permit, discussed job for day and safety hasardous around well head. 11:00 12:00 1.00 RURD COIL AF PU injector, cut 300' coil. Replace the mechanical counter with new one. MU 1 3/4" coil connector to end of coil. Add 20' additional lubricator. Pull test coil connector to 20K. Good test. 12:00 13:00 1.00 RURD COIL AF MU BHA consisting of the following CC, dual flapper BPV, hydraulic disconnect, dual cir sub, 2 7/8" extreme motor with 3.8" string mill with a step mill tappered to 3.75" OD ring gauge. Go to well with BHA. Shell test to 4500 psig. Tree fitting and Bowen connection leaked. Lay down fix connection continue with shell test. Test low to 250/4500 psig. Good test. 13:00 15:00 2.00 WORK COIL AF Open well. WHP= 250psig. Open well. RIH with coil. 15:00 16:00 1.00 WORK COIL AF Coil at 3, 000' CTM. PIR atmin = 0.3 BPM. WHP= 245 psig. www.peloton.com Page 8/11 Report Printed: 8/10/2010 -~ pn O~'ations Summary Report by Job• „,~ ®Qjj( Well Name: SUSAN DIONNE 4 tart Time I End Time Dur (hrs) ps Cade - Ops Activity Cade ~ Status Trouble Code - -- Comment 16:00 17:00 1.00 WORK COIL AF Coil at 10000', PU to 9990', PU weight = 24 K. Increase PIR- 2.0 BPM, PIP=1800 psig. RIH with coil. Tagged up at 10010'. Stalled motor. shut down pump, pick up coil. (Coil tubing counter reading +105') PUH to 10000'. 17:00 18:00 1.00 WORK COIL AF Increase PIR to 2.5 BPM, RIH with mill to 10007', WHP= 240 psig, PIP= 3300 psig. Stalled motor, Shut down pump. PUH with coil. PUW= 30 K. Coil @ 9999' CTM. 18:00 19:00 1.00 WORK COIL AF RIH with coil to dry tag the tight spot. Dry tagged at 10008' CTM. Increased PIR to 2.0 BPM. PIP= 2070 psig. RIH with coil at 10007.3' CTM, pump stalled -shut down pump. PU hole with coil to 10000' CTM. Total fluid pumped= 66 bbls. 19:00 20:00 1.00 WORK COIL AF Start pump rate at 2.0 BPM, PIP= 2177 psig. RIH to 10007.6' CTM. Stalled motor. Shut down pump, PU coil. RIH with coil tagged 10002' CTM. Pull up hole to 9999' CTM. 20:00 21:00 1.00 WORK COIL AF Start pump, PIR =1.25 BPM. Continue running in hole with mill. Coil at 10007.5' CTM. PIP=670 psig. Stalled motor. Appears that both the 3.8' and 3.75" step mill is to aggresive for smoothing out tight spot. 21:00 22:00 1.00 WORK COIL AF POOH with coil. Coil at surface, break off the Baker mill & motor. Layed down lubricator. Cut 50' coil off and continued rigging down the injector and secured well. Cleaned up around well head. BJ left lease. Daily Operations Report Date: 10/4/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary RIH with motor and smaller 3.68" tappered mill to 10120' to clean up tight spots in tubing to set a patch. - - _ _ - T ~ __ - --_ _ Ops Trouble ~ i Start Time I End Time Dur (hrs) 'i Ops Code Aetivit Code Status Code I Comment 07:00 08:00 1.00 SAFETY MTG AF _ _ Held PJSM, Optained work permit, discussed job for day and safety hasardous around well head. 08:00 09:00 1.00 RURD COIL AF PU injector, cut 100' coil. Replace the mechanical counter with new one. MU 1 3/4" coil connector to end of coil. Add 20' additional lubricator. Pull test coil connector to 20K. Good test. 09:00 10:00 1.00 RURD COIL AF MU BHA consisting of the following CC, dual flapper BPV, hydraulic disconnect, dual cir sub, 2 7/8" extreme motor with a step mill tappered to 3.67" OD ring gauge. Go to well with BHA. Shell test to 2000 psig. Test low to 250/2000 psig. Good test. 10:00 12:00 2.00 WORK COIL AF Open well. WHP= 250 psig. Open well. RIH with coil. 12:00 13:00 1.00 WORK COIL AF Coil at 3, 000' CTM. PIR atmin = 0.3 BPM. WHP= 0 psig. 13:00 14:00 1.00 WORK COIL AF Coil at 10, 190' CTM to dry tag, no tag up. PU weight on coil= 22 K. PU coil up t o 10100' KBD, Increase PIR= 2.0 BPM, PIP=2100 psig. RIH milling down to 10145'. 14:00 15:00 1.00 WORK COIL AF PU coil to 10086' KBD. Increased PIR to 2.5 BPM. RIH with coil down to 10170' KBD. Mill through tight spot with no problem. 15:00 16:00 1.00 WORK COIL AF Pull up through perforated area at same PIR of 2.5 BPM. No problem, POOH with coil. 16:00 17:00 1.00 WORK COIL AF OOH with coil. Break off the 3.67" step mill. MU 3.75" step mill built less agressive with no button bits on face. 17:00 18:00 1.00 WORK COIL AF PU injector and go to well with injector. Open will. WHP= 0 psig. 18:00 19:00 1.00 RURD COIL AF RIH with BHA consisting of the following CC, dual flapper BPV, hydraulic disconnect, dual cir sub, 2 7/8" extreme motor 3.75" tappered step mill. Go to well with BHA. 19:00 19:00 WORK COIL AF RIH with coil down to 7500' start PIR at min rate of 1.5 BPM to fill coil. When coil at 10090' CTM. Increased PIR to 2.0 BPM. 184 bbls fluid pumped today. Work coil down to 10124' CTM. Motor stalled. S/D pump. PU coil to 10108' CTM. 19:00 19:00 WORK COIL AF Bring pump up to 2.0 BPM. PIP= 2800 psig, RIH stalled motor at 10122.5' CTM. S/D pump, PU hole with coil to 10117' CTM. Increase PIR = 2.5 BPM. RIH with coil. 19:00 19:00 WORK COIL AF Coil at 10120' CTM, work very slow PIP= 3900 psig. Pumped total of 240 bbls. Continue to work coil down while milling. Coil down to 10124.1' , Stalled motor, S/D, PU coil to 10117.1' CTM. Start pumping at 1.5 BPM, PIR= 1600 BPM. www.peloton.com Page 9/11 Report Printed: 8/1012010 ~~pn O~'ations Summary Report by Job• ,~„~,1„0^ ®Oi~C:o~'1p®ny Well Name: SUSAN DIONNE 4 Ops Trouble __ -- _ _- - Start Time -- End Time Dur hrs) Ops Code Activity Code Status Code Comment - 19:00 19:00 WORK COIL AF - - RIH with coil milling, good penetration, Coil down to 10124.4' CTM, Work coil slowly. PIP= 1640 psig. Coil at 10140' CTM. Pull up hole while pumping at same rate. 19:00 19:00 WORK COIL AF PU weight = 22 K, PU coil to 10100'. Shut down pump. RIH dry down to 10145' CTM, Fell through with no tight spots. POOH with coil. WHP= 0 psig. Total 400 bblls pumped in well with no returns. 19:00 19:00 RURD COIL AF At surface with coil, tagged shut in swab valve. Break off lubricator. PU injector and go to ground with injector. Lay down BHA, motor, & mill. Lay down lubricator and rack up the injector. Secured well. Cleaned up around well head. BJ crew left lease. Daily Operations Re ort Date: 10/5/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary MO BJ coil tech, Move in Pollard wireline and run dummy patc __ - - h. ' Ops Trouble - - --- Start Time End Time Dur (hrs) Ops Code I Activity Code Status Code Comment 07:00 08:00 1.00 SAFETY MTG AF Held PJSM, discussed potential- safety issues around the well head. Optained work permit, discussed rig down safety hazardous and job scope. 08:00 11:00 3.00 RURD COIL AF Rig down unit, pu lines, equipment, MU line to displace the coil with N2. Problem with N2 unit catching prime. Continue rigging down coil unit. Truck moved supply tank to KGF. 11:00 13:00 2.00 RURD COIL TS MSCT N2 pump valve on unit broke. Wait on the other unit to be delifvered to blow down reel. Pump arrived. Continue with Rig down on Coil unit after blowing reel dry. BJ left lease. Pollard arrived. 13:00 15:00 2.00 SAFETY MTG AF Held PJSM, discussed operation & hazardous around well head. 15:00 16:30 1.50 RURD SLIK AF Spot equipment, MU 3.75" 13' dummy to simulate patch. PT, RIH with dummy. Sat down at 6740' KBD. Could not work past, POOH with dummy patch. Tagged fluid at 2600' KBD. OOH no marks on bottom. 16:30 18:30 2.00 WORK SLIK AF MU same tool string with 3.75" swage. RIH tagged up at 10153' KBD. (patch to be set from 10,116' - 10140') Work easy but did not try to jar past. POOH with the swage. 18:30 20:00 1.50 RURD SLIK AF OOH with swage. RD wire line unit. Cleaned up around well head. PWS left lease. Well shut in with 100 PSTG. Plan forward to set 3.718" patch and verify depth with a-line. Report Date: 1 011 3/2 0 0 8 Job Cate o R&M MAINTENANCE 24 Hr Summary RIH 3.75 gauge cutter tag at 10,123'. RIH 3.625 gauge cutter and tag at 10,180'. Ops i Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:00 09:00 1.00 SAFETY MTG AF _ MI spot up equipment, held PJSM, discussed hazardous around wll head, Obtain work permit and talked safety concerns. 09:00 11:00 2.00 RURD ELEC AF Lay out lubricator, MU tool string with 3.75" GR, 10 stem, CCL and bull nose on bottom. PU go to well. Open well, WHP= 1400 psig, go to well with GR. Correlate log with perforation log. 11:00 13:00 2.00 WORK ELEC AF RIH with tool string. Tagged high at 10123' DIL, 7' into perforation @ 10114' - 10134'. Work 3.75" GR, POOH. Discussed operations with eline operator and chance of 30' patch with 3.72" OD elements making past tag depth. Decide to run smaller GR. 13:00 14:00 1.00 WORK ELEC AF OOH with GR, bled down lubricator. MU 3.65" GR. PU and go to well with GR. RIH tools falling slow. 14:00 16:00 2.00 WORK ELEC AF RIH to 10180' DIL with 3.65" GR. POOH with GR. 16:00 18:00 2.00 RURD ELEC AF OOH, blow down lubricator. RD E-line tools string. Clean up around well head. Expro left lease. WHP= 1400 psig, wll shut in until decision made to flow well. Report Date: 10/15/2008 Job Cate o R&M MAINTENANCE 24 Hr Summary Run 3.72 gauge cutter to 10,225_'. PU 31' patch and set from 10,112.5' - 10,143.5'. - - i _ Ops Trouble ~ - -- - - ___~ l ~ ~ P y Start Time End Time Dur (hrs) O s Code Activit Code Status Code ~ Comment 08:00 09:00 1.00 SAFETY DRIL AF Hold PJSM. Discuss Expro JSA, issue permit aned assign jobs. 09:00 11:30 2.50 RURD ELEC AF RU eline unit to run 3.72" gauge ring. 11:30 12:00 0.50 TEST EOIP AF Test Lubricator. 12:00 15:45 3.75 RUNPUL ELEC AF RIH 3.72" gauge ring to 10.225'. No tag. No sign of bad casing. POH. www.peloton.com Page 10/11 .Report Printed: 8/10/2010 M h ,Naw-rxox ®OiIC;Omp~tty 0~'ations Summary Report by Job, Well Name: SUSAN DIONNE 4 r Start Time i ~ End Time ~ i Dur (hrs) Ops Code Activity Cade Ops Status Trouble Cade Comment 15:45 16:45 1.00 RURD CMT AF Lay out lubricator, patch, and running tool. 16:45 17:00 0.25 SAFETY MTG AF Hold explosive safety meeting with well services crew, construction supervisor, and operators. SD corns and phones. Post guard on road 17:00 17:15 0.25 RURD ELEC AF Arm patch setting tool. 17:15 19:15 2.00 RUNPUL ELEC AF RIH patch and position to patch 10,112.5' - 10,143.5' 19:15 19:30 0.25 RUNPUL ELEC AF Set patch. All indications correct that patch is set. 19:30 20:45 1.25 RUNPUL ELEC AF POH 20:45 22:15 1.50 RURD ELEC AF RD. Close permit, sign out and release Expro. www.peloton.com Page 11/11 Report Printed: 8/10/2010 #: 50-133-20547-00-00 p Des: ADL - 384372 Elevation: 156' (21' AGL) 213,102.309 2,236,587.738 tude: 60° 06' 46.287"N itg ude: 151° 34' 21.711" W d: 12/10/2004 01 /03/2005 Released: SD - 4 Ninilchik Unit 104' FSL & 1,331' FEL Sec. 6, T1 S, R13W SM Baker Chemical Infection Nipple @ 2,396' MD (Top) 5.930" ODI3.858" ID; 8,430 psi burst17,500 psi collapse KOP @ 250' MD1ND Build 4.0° / 100' from 250-1,980' Hold 64° from 1,980-6,000' MD Drop 2°/ 100' to 8,200' MD Hold 30.5° from 8,200-8,400' MD Orop 2°/ 100' from 8,400'-10,015' MD Final angle of 2.6° @ TD of 11,953' MD Azimuth: 265° @ 9,766' MD & 99° @ 11,953' TD Tie-back 4-1/2" L-80 12.6 ppf IBT Mod Tom Bottom MD 21' 5,873' ND 21' 3,298' ZXP Liner Packer with 15' Tieback Extension @ 5,873' MD (Top) Flex-Lock Liner Hanger @ 5,897' MD (Top) Marker Joint @ 8,115-8,131' MD Marker Joint @ 9,767-9,783' MD Landing Collar @ 11,830' MD (Top) Float Collar @ 11,863' MD (Top) Float Shoe @ 11,927' MD (Bottom) Cement Top @ 6,600` Expro Radial Bond Formation Tops: Log i Formation Depth (MD) Depth (ND) Beluga 912' 884' Tyonek 6,120' 3,406' TD 11,953' 8,367' Owens Patch CrD: 10,112.5' - 10,143.5'. 3.1" ID Buckled pipe at 10,125'. Min ID 3.69" July 08 3.72 GC to 10,225' after milling in Oct 08 TD @ 11,690' w\Expro PLT (712 312 0 1 0) @ 11,820' MD w12" nozzle on 1-314" Coil Tubing 2-5/8" Cores: 1. 8,256'-8,346' KB (Cut 89' Recvd 84') 2. 10,940'-10,969' KB (Cut 29' Recvd 25.5') 3.10,969'-11,031' KB (Cut 62' Recvd 62') Conductor 20" K-55 133 ppf PE Tom Bottom MD 0' 122' ND 0' 122' Surface Casing 9-5/8" L-80 40 ppf BTC To,~ Bottom MD 0' 1,851' ND 0' 1,541' 12-1/4" hole w1403 sks 12 ppg cement Tvonek Perfs: MD TVD Net Ft. ;g,.~;&~10~g0' 6,533'-.&,,555'. 24' Patched 10,406'-10,414' 6,821'- 6,829' 8' Owen 3-318" 6spf 05/31/06 10,420'-10,435' 6,835'- 6,850' 15' Owen 3-318" 6spf 05/26/06 10,458'-10,472' 6,873'- 6,887' 14' Owen 3-318" 6spf O5/09/O6 10,559'- 10,602' 6,974- 7,017' 43' Owen 3-3/8" 6spf 031198.22/05 10,612'- 10,636' 7,027- 7,051' 24' Owen 3-3/8" 6spf 03/19/05 10,769'-10,782' 7,184.7,197' 13' Owen 3-3/8" 6spf 03119/05 10,855'-10,869' 7,270- 7,284' 14' Owen 3-3/8" 6spf 03119/05 10,876'-10,890' 7,291- 7,305' 14' Owen 3-3/8" 6spf 03/17/05 11,116' -11,135' 7,530.7,549' 19' Owen 3-3/8" 6spf 03/17/05 11,147' -11,171' 7,561- 7,585' 24' Owen 3.318" 6spf 03117/05 ~ ~ Perf Gun Fish: 3-3/8" Perf Gun after perforating 10,116-10,140' MD „, ( 24'). Top tagged at 11,300' MD with P-T Tool on 06/15/2007. °. ~ '; Gun Dimensions -Rope Socket - 1' L, 1.43" OD, Collar Locator - 2.5' L, ;3 .125" OD, PX-1 Det Housing 1.5' L, 3.125" OD, 3-3/8" Perf Gun wl : Subs- 26.5' L, 3.375" OD. (Overall Length 31.5') TD PBTD 11,953' MD 11,820 MD 8,367' ND 8,234' ND Well Name & Number: Susan Dionne #4 Lease: Ninilchik Unit, ADL-384372 Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 10,406' - 11,171' Perf (TVD): 6,821' - 7,585' Angle @ KOP & Depth: 3° / 100 ft @ 250' MD Angle @ Perfs: - 2° Date Completed: 3/18/2005 Ground Level: (AMSL) RKB: 21' (AGL) Revised by: Kevin Skiba Revision Date: 8/10/2010 M MARATHON Intermediate Casing 7" L-80 26 ppf BTC Tom Bottom MD 0' 6,098' ND 0' 3,397' 8-112" hole cemented w1263 sks 12.5 ppg Lead & 185 sks 15.8 ppg Tail Liner 4-112" L-80 12.6 ppf Hydril 533 Tom Bottom MD 5,873' 11,927' ND 3,298' 8,341' 6-1/8" ho le cemented w/ 498 sks 13.5 ppg class-G • • M N Laboratories, Inc. (832) 23T-4000 Fax: (832) 237-4700 8845 Failbrook Drive, Houston, Texas 77064 Release Form Date: 4/25/2005 OMNI Employee Authoring Release: Jaime Shannon /Jennifer Benefield Meana iOf Detmber: A-N87010racking #811 8892 961 y R p~ cS ~ ~~~~ ~~ H f !d Weil Irrtormation: Marathon Oil Company Susan Dionne No. 4 Well Ninild~ik Field Kenai Pennisula Borough, Alaska Material Released: State of Alaska Chip Samples Individual Requesting Release: David Brimt~rry -Marathon Individual Authorizing Release: David Brimherry -Marathon Purpose Of Release: Per client request Address Material Was Deihrered To: State of Alaska Phone.: 333 7th Ave Anchorage, AK 99503 Delivery Accepted By: ~ Date: ' ,,,~ ~tS Printed Name: O ~ i~~a ---~ ~:.~ ~ - a. 33 • r: MNI . ~.. Marathon Oil Company Susan Dionne No. 4 Well Ninilchik Field Kenai Pennisula Borough, Alaska File: A-87010 Date: 4/25/05 Routine Plus Plug Diamefer: 1.0" Requested Actual Plug Length: LAP Driller Date Sample Sample Drillin Fluid: Li uid Nitro en Name Drilled Tube Core Sample Depth, Depth, Comments: Orientate End Trim No. No. No. feet feet otchin W/Trim Saw "U -Hole" Direct ion 1 1 1-1 8256.50 8256.50 P. Presto 1/28/2005 1 1 1-2 8257.50 8257.45 P. Presto 1/28/2005 1 1 1-3 8258.50 8258.35 P. Presto 1/28/2005 2 1 1-4 8259.50 8259.50 P. Presto 1/28/2005 2 1 1-5 8260.50 8260.55 P. Presto 1/28/2005 2 1 1-6 8261.50 8261.30 4 P. Presto 1128/2005 3 1 1-7 8262.50 8262.5 P. Presto 1/28/2005 3 1 1-8 8263.50 8263.50 P. Presto 1/28/2005 3 1 1-9 8264.50 8264.50 P. Presto 1/28/2005 4 1 1-10 8265.50 NIA Whole Core Section {8265-8266.5) P. Presto 1/28/2005 4 1 1-11 8266.50 8266.75 P. Presto 1/28/2005 4 1 1-12 8267.50 8267.50 P. Presto 1/28/2005 5 1 1-13 8268.50 NIA Whole Core Section (8268-8269.7 P. Presto 1/28/2005 5 1 1-14 8269.50 8269.90 Whole Core Section (3/4" Length) P. Presto 1/28/2005 5 1 1-15 8270.50 8270.50 ~ P. Presto 1/28/2005 6 1 1-16 8271.50 8271.50 P. Presto 1/28/2005 6 1 1-17 8272.50 8272.50 P. Presto 1!28/2005 6 1 1-18 8273.50 8273.50 P. Presto 1/28/2005 7 1 1-19 8274.50 NIA NO PLUG REQUESTED -COAL P. Presto 1128!2005 7 1 1-20 8275.50 N/A NO PLUG REQUESTED -COAL P. Presto 112812005 8 1 1-21 8276.50 NIA NO PLUG REQUESTED -COAL P. Presto 1/28/2005 8 1 1-22 8277.50 N/A NO PLUG REQUESTED -COAL P. Presto 1/28/2005 9 1 1-23 8278.50 NIA NO PLUG REQUESTED -SHALE P. Presto 1/28/2005 10 1 1-24 8279.50 NIA NO PLUG REQUESTED -SHALE P. Presto 1/28/2005 10 1 1-25 8280.50 8280.50 Cla Anal sis P. Presto 1/28/2005 10 1 1-26 8281.50 NIA NO PLUG REQUESTED -SHALE. J. M ers 1/31/2005 11 1 1-27 8282.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 11 1 1-28 8283.50 NJA NO PLUG REQUESTED -SHALE J. ers 1131/2005 11 1 1-29 8284.50 8284.5 Cta Anal sis J. M ers 1/31/2005 12 1 1-30 8285.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 12 1 1-31 8286.50 NIA NO PLUG REQUESTED -SHALE J. ers 1/31/2005 12 1 1-32 8287.50 N/A Whole Core Section (828T-8288') J. Myers 1/31/2005 13 1 1-33 8288.50 8288..5 J. M ers 1/31/2005 13 1 1-34 8289.50 8289.50 J. M ers 1/31/2005 13 1 1-35 8290.50. 8290.50 J. ers 1 /31/2005 14 1 1-36 829L50 8291.50 J. M ers 1/31/2005 • • 14 1 1-37 8292.50 8292.50 J. M ers 1/31/2005 14 1 1-38 8293.50 8293.50 J. M ers 1/31/2005 15 1 1-39 8294.50 8294.50 J. M ers 1/31/2005 15 1 1-40 8295.50 8295.50 J. M ers 1/31/2005 15 1 1~1 8296.50 8296.50 J. M ers 1/31/2005 16 1 1-42 8297.50 8297.50 J. M ers 1!31!2005 16 1 1-43 8298.50 8298.50 J. M ers 1131!2005 16 1 1-44 8299.50 8299.50 J. ers 1/31/2005 17 1 1-45 $300.50- 8300.50 J. Myers 1/31/2005 17 1 1-46 8301.50 8301.50 Cla Anal sis J. M ers 1/31!2005 17 1 1-47. 8302.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 18 1 1-48 8303.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 18 1 1-49 8304.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 18 1 1-50 8305.50 N/A NO PLUG REQUESTED -SHALE J. ers 1/31/2405 19 1 1-51 8306.50 8306.50 Cla Anal sis J. M ers 1!31/2005 19 1 1-52 8307.50 N/A NO PLUG REQUESTED -SHALE J. ers 1!31/2005 19 1 1-53 8308.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 20 1 1-54 8309.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 20 1 1-55 8310.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1131!2005 21 1 1-56 8311.50 8311.50 Cla Anat sis J. ers 1/31/2005 21 1 1-57 8312.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 21 1 1-58 8313.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 22 1 1-59 8314.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 22 1 1-60 8315.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1/31/2b05 22 1 1-61 8316.50 8316.50 Cla Anal sis J. M ers 1/31/2005 23 1 1~2 8317.5 N/A NO PLUG REQUESTED -SHALE J. M ers 1!31/2005 23 1 1-63 8318.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1!31/2005 23 1 1-64 $319.50 N/A NO PLUG REQUESTED -SHALE J: M ers 1/31/2005 24 1 1~5 8320.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1131!2005 24 1 1-66 8321.50 $321.50 Cla Anal sis J. M ers 1!31/2005 24 1 1-67 8322.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 25 1 1-68 8323.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 25 1 1-69 8324.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1!31!2005 25 1 1-70 8325.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1!31!2005 26 1 1-71 8326.50 8326.50 Cla Ana sis J. ers 1/31!2005 26 1 1-72 8327.50 NIA NO PLUG REQUESTED -SHALE J. ers 1!31!2005 26 1 1-73 8328.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1!31!2005 27 1 1-74 8329.50 NIA NO PLUG REQUESTED -SHALE J. M ers 1!31/2005 27 1 1-75 8330.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 27 1 1-76 8331.50 8331.50 Cla Anal sis J. ers 1/31!2005 28 1 1-77 .8332.50 N/A NO PLUG REQUESTED -SHALE J. ers 1/31/2005 28 1 1-78 8333.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 28 1 1-79 8334.50 NIA NO PLUG REQUESTED -SHALE J. ers 1/31/2005 29 1 1-80 8335.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 29 1 1-81 8336.50 8336.50 Cla Anal sis J. M ers 1/31/2005 29 1 1-82 8337.50 NIA NO PLUG REQUESTED -SHALE J. ers 1/31/2005 30 1 1-83 8338.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31/2005 30 1 1-84 8339.50 N/A NO PLUG REQUESTED -SHALE J. M ers 1/31!2005 31 1 1-85 8340.50 N!A NO PLUG REQUESTED -SHALE J. M ers 1131!2005 31 1 1-86 8341.40 8341.40 Cla Ana sis J. M ers 1131!2045 • ~MNI Marathon Oil Company Susan Dionne No. 4 Well Ninilchik Field Kenai Pennisula Borough, Alaska File: A-87010 Date: 4/25/05 Routine Plus Plug Diameter: 7.0" Requeste Actual Plug Length: LAP Driller Date Sample Sample Drillin Fluid: Li uid Nitro en Name Drilled Tune Core Sample Depth, Depth, Comments: Orientate End Trim No. No. No. feet feet Notchin W/Trim Saw "U -Hale" Direction 1 2 2-1 10940.5 NIA NO SAMPLE REQUESTED -SHALE J. M ers 2/1/2005 1 2 2-2 10941.5 10941.50 Cla Anal sis J. M ers 2/1/2005 1 2 2-3 10942.5 N/A NO SAMPLE REQUESTED -SHALE J. M ers 2/1/2005 2 2 2~ 10943.5 10943.50 Cla Anal sis J. M ers 2/1/2005 2 2 2-5 10944.5 10944.50 J. AA ers 2/1/2005 2 2 2-6 10945.50 14945.50 J. M ers 2/1/2005 3 2 2-7 10946.50 10946.50 J. M ers 2/1/2005 3 2 2-8 10947.50 10947.50 J. M ers 2/1/2005 3 2 2-9 10948.50 10948.50 J. M ers 2/1/2005 4 2 2-10 10949.5 10949.50 J. M ers 2/1/2005 4 2 2-11 10950.50 10950.50 J. M ers 2/1/2005 4 2 2-12 10951.50 0951.50 J. M ers 2/1/2005 5 2 2-13 10952.5 10952.50 J. M ers 2/1/2005 5 2 2-14 10953.50 10953.50 J. M ers 2/1/2005 5 2 2-15 10954.5 10954.54 J. M ers 2/1/2005 6 2 2-16 10955.50 10955.50 J. M ers 2/1!2005 6 2 2-17 10956.50 10956.50 J. M ers 2/1/2005 6 2 2-18 10957.50 10957.50 J. M ers 211/2005 7 2 2-19 10958.50 10958.50 J. M ers 2/1/2005 7 2 2-20 10959.50 N/A Whole Core Section (10959'-10964' J. M ers 2/1/2005 7 2 2-21 10960.50 N/A Whole Core Section 10959'-10964' J. M ers 2/1/2005 8 2 2-22 10961.50 N/A Whole Core Section 10959'-10964' J. M ers 2/1/2005 8 2 2-23 10962.50 N/A Whole Core Section (10959'-10964' J. M ers 2/112005 8 2 2-24 10963.50 N1A Whole Core Section (10959'-10964' J. M ers 2/1/2005 9 Z 2-25 10964.50 964.54 J. M ers 2/1/2005 9 2 2-26 10965.40 NIA J. M ers 2/112005 ~ ~ OMNI Marathon Oil Company File: A-87010 Susan Dionne No. 4 Well Date: 425/05 Ninilchik Field Kenai Pennisula Borough, Alaska Routine Plus Plug Diameter: 7.0" Requested Actual Plug Length: LAP Driller Date Sample Sample Drillin Fluid: Li uid Nitro en Name Drilled Tube Core amp! Depth, Depth, Comments: Orientate End Trim No. No. No. feet feet Notchin W/Trim Saw "U -Hole" Direction 1 3 3-1 10969.50 10969.50 J. M ers 2/1/2005 1 3 3-2 10970.50 10970.50 J. M ers 2/1/2005 2 3 3-3 10971.50 10971.50 J. M ers 211 /2005 2 3 3~ 10972.50 10972.50 J. M ers 2/1!2005 2 3 3-5 10973.50 10973.50 J. M ers 2/1/2005 3 3 3~ 10974.50 10974.50 J. M ers 2/1/2005 3 3 3-7 10975.50 0975.50 J. M ers 2/1/2005 3 3 3-8 10976.50 10976.50 J. M ers 2/1/2005 4 3 3-9 10977.50 10977.50 J. M ers 2/1/2005 4 3 3-10 10978.50 10978.50 J. M ers 2/1/2005 4 3 3-11 10979.50 10979.50 J. M ers 2/112005 5 3 3-12 10980.50 10980.50 J. M ers 2/1/2005 5 3 3-13 10981.50 10981.50 J. M ers 2/112005 5 3 3-14 10982.50 10982.50 J. M ers 2/1/2005 6 3 3-15 10983.50 10983.50 H. Perale 2/212005 6 3 3-16 10984.50 10984A0 H. Perale 2/2/2005 6 3 3-16A 10984.50 10984.50 H. Perale 2/2/2005 6 3 3-17 10985.50 10985.50 H. Perale 2/2/2005 7 3 3-18 10986.50 10986.50 H. Perale 2/212005 7 3 3-19 10987.50 10987.50 H. Perale 2/2/2005 7 3 3-20 10988.50 10988.50 H. Perale 2/2!2005 8 3 3-21 10989.50 10989.50 H. Perale 2/2/2005 8 3 3-22 10990.50 10990.50 H. Perale 2/2/2005 8 3 3-23 10991.54 10991.50 H. Perale 2/2!2005 9 3 3-24 10992.50 10992.50 H. Perale 2/3/2005 9 3 3-25 10993.50. 10993.50 H. Perale 2/3/2005 9 3 3-26 10994.50. ' 10994.50 H. Perale 2/3!2005 10 3 3-27 10995.50 10995.50 H. Perale 2/3/2005 10 3 3-28 10996.50 10996.50 H. Perale 2/3!2045 10 3 3-29 10997.50 10997.60 H. Perale 2/3!2005 11 3 3-30 10998.50 10998.50 H. Perale 2/3/2445 11 3 3-31 10999.50 0999.65 H. Perale 2/3/2005 11 3 3-32 11000.50 11000.50 H. Pena 2/3/2005 12 3 3-33 11001.50 NIA WHOLE CORE SECTION 11401'-11006` .Perale 2/3/2005 13 3 3-34 11002.50 WA WHOLE CORE SECTION (11001'-11fl(~` .Perale 2!3!2005 13 3 3-35 11003.50 N!A WHOLE CORE SECTION 11401'-1100' .Perale 2/3/2005 13 3 3-36 11004.50 NlA WHOLE CORE SECTION (11401'-11406' .Perale 2/3/2045 ~ • 14 3 3-37 11005.50 N/A WHOLE CORE SECTION 11001'-11006' .Perale 2/3/2005 14 3 3-38 11006.50 NIA H. Perale 2/3/2005 14 3 3-39 11007.50 N/A H. Perale 2/3/2005 15 3 3-40 11008.50 11008.50 H. Perale 2/3/2005 15 3 3-41 11009.50 ~ 11009.50 H. Perale 2/3/2005 15 3 3-42 11010.50 1010.50 H. Perale 2/3/2005 16 3 3-43 11011.50 11011.50 H. Perale 213/2005 16 3 3-44 11012.50 11012.50 H. Perale 2/3/2005 16 3 3-45 11013.50 11013.50 H. Perale 2/3/2005 17 3 3-46 11014.50 11014.50 H. Perale 2/3/2005 17 3 3-47 11015.50 11015.50 H. Perale 2/3/2005 17 3 3-48 11016.50 11016.50 H. Perale 2/3/2005 18 3 3-49 11017.50 11017.50 H. Perale 2/3/2005 18 3 3-50 11018.50 11018.50 H. Perale 2/3!2005 18 3 3-51 11019.5 11019.50 H. Perale 2/3/2005 19 3 3-52 11020.50 N/A NO PLUG REQUESTED -COAL .Perale 2/3/2005 19 3 3-53 11021.50 N/A HOLE CORE SECTION (11021' -11022' .Perale 213/2005 19 3 3-54 11022.50 NIA NO PLUG REQUESTED -COAL .Perale 2/3/2005 20 3 3-55 11023.50 N/A NO PLUG REQUESTED -COAL .Perale 2/3/2005 20 3 3-56 11024.50 N/A NO PLUG REQUESTED -COAL .Perale 2/3/2005 20 3 3-57 11025.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 21 3 3-58 11026.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 21 3 3-59 11027.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 21 3 3-60 11028.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 22 3 3-61 11029.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 22 3 3-62 11030.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 22 3 3-63 11031.50 N/A NO PLUG REQUESTED -SHALE .Perale 2/3/2005 PVC 3 3-64 11032.40 NIA NO PLUG REQUESTED -SHALE .Perale 2/3/2005 -~ ~-. MICRaFI~MED 03101/2008 Da NOT PLACE r~~ ~~,,.; ~~~~ ~, ANY NEW MATERIAL UNDER THIS PAGE F:~L.aserFichelC'vrPgs_InsertslMicrofilxn Maxker.cbc • 6„., t.. t! ~Y )u;t «_6 _.,._.~ ~ ~:'.~ ~' _~ .'_f~ L.~ i ~:.~ lr.l i ~ I ~.~s L3 ~.:k ~..1~„ AI.ASSA OII, AI~TD GGA,S C01~5ERQATIOI~IT COMr-IISSIOI~T Ken Walsh Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai, AK 99611-1949 • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 nn ~'~- d~ Re: Ninilchik Field, Susan Dionne Tyonek Undefined Sundry Number: 307-348 ~~+~~ NOV ~ 3 20Q7 Dear Mr. Walsh: Gas Pool, Susan Dionne #4 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this~day of November, 2007 Encl. Sincerely, • Marathon MARATHON Oil Company November 15, 2007 Tom Maunder AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Reference: 10-403 Sundry Notice Field: Ninilchik Unit Well: Susan Dionne #4: PTD #204-233 Dear Mr. Maunder: Alaska Business Unit P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 9071283-6175 Attached and submitted for your approval is the Form 10-403 to set casing patches across the four uppermost perforated intervals in the Susan Dionne #4 well. These patches are intended to shut off the high produced water volume from this well and determine exactly which interval is contributing the bulk of the water. Based on the flow tests following the installation of each casing patch, the intervals that tested with relatively low water production will be reperforated through the casing patch. A procedure and a wellbore diagram are also included. This form is being submitted as a follow-up to the verbal procedure that you granted on 2/28/2007 for this work. Marathon will complete and submit the Form 10-404 for the work once it has received the written approval of this Form 10-403. If you would like any other information, please contact me at 394-3060 or kdwalsh _marathonoil.com. Sincerely, l~~ ~ ~ Ken D. Walsh Senior Production Engineer Enclosures: 10-403 Sundry cc: AOGCC Well Schematic Houston Well File Operations Procedure Kenai Well File KDW • ~j~` 11' ~5'`'` ~s~ ~~` ~ECG~ Y ~~ STATE OF ALASKA ( ~~~ ~ ~~~~ ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPRC3VAL~ska Oil & Gas Cons. Oammisslan 20 AAC 25.280 Anchorage 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate /^ Waiver ^ Other ^ Alter casing ^Q Repair well ^ Plug Perforations ulate ^ Time Extension ^ Change approved program ^ PuFl Tubing ^ Perforate New Pool ~~ Re-enter Suspended Well ^ 2. Operator Name: 4. Curcent Well Class: 5. Permit to Drill Number. Marathon Oil Com an Development O Exploratory ^ 204.233 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Bax 1949, Kenai Alaska, 99611-1949 50-133-20547-00 7. If perforating, cosest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacng Exception Required? Yes ^ No CJ Susan Dionnne #4 9. Property Designation: 10. KB Elevation (ft): 11. FieldlPool(s): ADL - 384372 156' ~ Ninilchik / Belu a-T onek 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): 11,953' 8,367 - 11,820" 8,234• Casing Length Size MD ND Burst Collapse Structural Conductor 122' 20' 122' 122' 3,060 psi 1,500 psi Surface 1,851' 9-5/8" 1,851' 1,541' 5,750 psi 3,090 psi Intermediate 6,098' 7' 6,098' 3,397' 7,240 psi 5,410 psi Production 11,927' 4-1/2" 11,927' 8,341' Liner 5,873' 4-1 /2" 11,927' 8,341' 8,440 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 10,116' - 11,171' Gross 6,531' - 7,585' Gross 4-1/2" L-80 5,873' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 5,873' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work; Detailed Operations Program 0 BOP Sketch ^ Exploratory ^ Development Q Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas Q Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skibe (907) 283.1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature ~ Phone (907) 283-1311 Date 11115/2007 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. ~0 ~ ~' ~' Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Gearance ^ Other. Subsequent Form Required: ~O~ ~' ~~~ ~~~ ~ ~ 207 ved b : A APPROVED BY ~~ /~+0~ MMISSIONER THE COMMISSION Date: y ppro Form 10-403 Revised 06/2006 `~ ~/ p ~ ~ ~ 1 N A L .Submit in Duplicate • KOP @ Z50' MD/TYD Build 4.0 deg1100' from 250.1980' Hoid 64 deg from 1960.6000' MD Drop 2 deg/100' to 8200' MD Hold 30.5 deg from 8200-84D0' MD Drop 2 deg/100' from 6400'-tOD15' MD Final angle of 2.6 deg at TD of 11,953' MD Azimuth: 265 deg. @ 9766' MD and 99 deg @TD' Susan Dionne #4 Ninilchik Unit 104' FSL 8r 1331' FEL ral~TMOM Sec. 6-T1 S-R13W Conductor 20" K-55 133 ppf PE Tog Bottom MD 0' 122' TVD 0' 122' SuAace Caslna 9-518" 40 ppf L-BO BTC Top B MD 0' 1851' TYD 0' 1541' 12-1/4" hole with 403 sks 12 ppg cement ng String - 4.5", 12.6#, L-80. Buttress Mod ng String - 4.5", 12.6#, L-80. Hyddl 533 r Chemical Injection Nipple @ 2396' MD (Top) 5.930' OD/3.858' ID 8430 psi hursU7500 psi collapse Liner Packer with 15' Tieback Extension @ 5873' MD (Top) Lock Liner Hanger @ 5897' MD (Top) er Joint @ 8115-8131' MD er Joint Q 9787-9783' MD ing Collar @ 11,830' MD (Top) Collar @ 11,863' MD (Top) Shoe @ 11,927' MD (Bottom) Tvonek Perfs: MD TVD 10,116-10,140, 24 ft 6531-6555' Owen 3-3/B" 6 SPF 1113106 10,406-10,414, 8 ft 6821-6829' Owen 3-318" 6 SPF 5/31/06 10,420-10,435, 15 ft 6835-6850' Owen 3-318" 6 SPF 5/26106 10,458-10,472, 14 ft 6873-6867' Owen 3-318" 6 SPF 5/9/06 10,559-10,602, 43 ft 6974-7017' Owen 3-3/8" 6 SPF 3/19&22105 10,612-10,636, 24 ft 7027-7,051' Owen 3-3/8" 6 SPF 3/19105 10,769-10,782, 13 ft 7184-7197' Owen 3.3/8" 6 SPF 3N9I05 10,855-10,869, 14 ft 7270-7284' Owen 3-318" 6 SPF 3/19105 10,876-10,890, 14 ft 7291-7305' Owen 3-318" 6 SPF 3/17105 11,116-11,135, 19 ft 7530-7549' Owen 3-318" 6 SPF 3/17105 11,147-11,171, 24 ft 7561-7585' Owen 3-3/8" 6 SPF 3/17105 TD: 11,953' MD / 6367' TVD Formaton Tops: Formation Deoth IMD- Deoth (TVD1 Beluga 912' 884' Tyonek 6120' 3406' TD 11,953' 8367' 2-5/8" Cores- 1.8256'-8346' KB (Cut 89' Recvd 84') 2.10940'-10969' KB (Cut 29' Recvd 25.5') 3.10969'-11031' KB (Cut 62' Recvd 62') Intermediate Casino 7" MD TVD 8-1/2" hole with 263 s 26 ppf L-80 BTC TOg- Bottom 0' 8098' 0' 3397' ks 12.5 ppg Lead + 185 sks 15.8 ppg Tall Cement Top at 6600' Expro Radial Bond Log Perf Gun Fish: 3-3/8" Perf Gun after perforating 10,116-10140' MD (24'). Top tagged at 11,300' MD with P-T Tool on 0611512007, Gun Dimensions -Rope Socket - 1' L, 1.43" OD, Collar Locator - 2.5' L, 3.125" OD, PX-1 Det Housing 1.5' L, 3.125" OD, 3-318" Perf Gun w/ Subs- 26.5' L, 3.375" OD. (Overall Length 31.5') Tagged PBTD at 11,820' with Expro CBLIGR Tagged at 11820' MD with 2" nozzle on 1-314" Coll Tubing Liner 4.112" 12.6 ppf L-80 Hydril 533 Tom Bottom MD 5873' 11,927' TVD 3298' 8341' 6-1/8" hole with +1- 498 sks 13.5 ppg Updated 4/4/2007 • MARATHON OIL COMPANY ALASKA REGION MARATHON Ninilchik Field Susan Dionne #4 Set Owen Casing Patches/Reperf Patched Intervals as Necessary WBS # W0.07.16463.EXP 11/15/2007 History: New Tyonek perforations were added in May and November 2007. The well production increased from 1.1 MMscfd at about 1000 psi FTP to about 1.3 MMscfd at 1000 psi FTP after the May perf event and then to 1.8 MMscfd at 2000 psi FTP after the November perforations were added. The well flowed with minimal produced water production until June 2007. After June 2007, water production increased to its present level of 275 BWPD and gas production has decreased to 7.0 MMscfd at 1375 psi FTP. A PLT was run in this well on June 15, 2007, and an Expro WIT (downhole video and quasi-PLT) was run on September 28, 2007. Both logs indicated that the majority of the produced water was coming from the top interval, 10116'-10,140' KB. However, these two PLT's also suggested that the next three perforation intervals, 10, 406'-10,472' gross, below the tap interval could be contributing a significant volume of produced water. On October 9, 2007, a 3.75" gauge ring was run on Expro wireline. The gauge ring became stuck twice at 10,125' KB (in the top perforation interval 10,116'-10,140' ICB). The gauge ring was pulled out of the well without penetrating any deeper than the stuck point. Objective: Cleaz any obstruction(s) incasing with gauge ring, swage, and brush on slickline to prepare well for casing patch installation. Set four casing patches to isolate and determine the source of the 275 BWPD. Test the well between each casing patch installation to determine gas and water rate decreases attributable to each patch set. Reperforate those intervals, based on the previous post-patch test rates, should be reperforated to maximi~~ gas rate while limiting produced water flow. 1) MIRU Pollard Wireline to swedge casing and run dummy casing patch. a. Hold PJSM. b. MU pump-in tee and wireline valve to Otis tree cap connection. PU lubricator and pull centralized 3.75" OD swage, spang jars, oil jars, stem, and weight bars into lubricator. Shut well in. c. Take lubricator to wellhead. Pressure test lubricator with methanol water to 250/2800 psi. d. RIH with swage to work tight spots to 10,550' I{B. POOH. e. RIH with 3.80" OD swage, spang jars, oil jars, stem, and weight bars on slickline to 10,550' KB. POOH. f. R1H with 3.80" OD wire brush, spang jars, oil jazs, stem, and weight bars on slickline to 10,550'. POOH. g. RIH with bottom 3.80" dummy patch element, 10' section of 3.75" OD patch sleeve, and top 3.80" OD dummy patch element, crossover, 8' 2-3/8" tubing pup, crossover, bait sub, spang jars, oil jars, and stem on slickline to 10,500' ICB. POOH. h. RIH with bottom 3.80" dummy patch element, 25' section of 3.75" OD patch sleeve, and top 3.80" OD dummy patch element, crossover, 8' 2-3/8" tubing pup, crossover, bait sub, spang jars, oil jars, and stem on slickline to 10,500' KB. POOH. i. RDMO Pollard Wireline. Page 1 of 3 11/15/2007 Susan Dionne #4 Casing Patch/Reperf • 2) MIRU Expro Wireline Unit. to efFirst, casine patch across 10,458'-10,472' 1{8: a. Hold PJSM and complete Work Permit form. b. NU Wireline valve with pump-in sub to 4-1/$" SK tree.. e. MU and PU sufficient 5" lubricator to seta 25' long casing patch. d. MU and pull. into lubricator 2' Owen PAT-4500-OQS, 11.6-.12.6 ppf short assembly, 20' Casing Patch„ setting taol, 2' Owen PAT-4500-005, 11.6-12.6 ppf short assembly ,setting tool, and CCL. Go to Radio Silence and arm setting tool. e. Take lubricator to wellhead. Pressure test lubricator to 250/2800 psi with methanol water; ItIH to desired space out for depth correlation below perforation interval, 10,458'-14,472' KB. Set correlation patch. POOH and LD setting tool. LD lubricator. f. RDMO Expro. g. Flow test well through test separator with particular emphasis on measuring the daily produced water and gas. volumes at a stabilized. FTP. 3) MIRU Expro Wireline Unit.. to set Second casing patch across 1.0,420'-10,435' KB. a. Hold PJSM and complete Work Permit farm. b. Ni.J Wireline valve with pump-in sub to 4-1/8" SK tree.. c. MU' and PU sufficient 5" lubricator tv seta 25' long casing patch:.. d. MU and pull into lubricator 2' Owen PAT-4500-005, 11.6-12,6 ppf short assembly, 20' Casing Patch, setting tool, 2' Owen PAT-4500-005, 11.6-1.2.6 ppf short assembly ,setting tool, and CCL. Go to Radio Silence and arm setting tool e: Take lubricator to wellhead. Pressure test lubricator to 250/2800 psi with methanol water. RIH to desired space out for -depth correlation below perforation. interval, 10,420'-10,435' KB. Set correlation patch with top at 10,41 T KB. POOH and LD setting tool. LD lubricator. f. RDMO Expro. g. Flow test-well through test separator with particular emphasis on measuring the daily produced water and gas volumes at a stabilized FTP. 4) MIRU Expro Wireline Unit to set Third canine patch across 1:0,406'-10,414' I~B. a. Hold PJSM and complete Work Permit form. b: NU Wireline valve with pump-in sub to 4-1/8" SK ixee. c. MU and PU sufficient 5" lubricator to seta 15' long casing patch. d. MU and pull into lubricator 2' Owen PAT-4500-005; 11.6-12,6 ppf short assembly, 10' Casing Patch,. setting tool, 2' Owen PAT-4500-005, 11.6-12.6 ppf short assembly ,setting tool, and CCL. Go to Radio Silence and ann setting tool. e. Take lubricator to wellhead. Pressure test lubricator to 250/2800 psi with methanol water. RIFI to tag top of previous casing patch at 10,417' KB. Set correlation patch with bottom at 10,417' KB and across perforation intervai, 10,406'-10,414' KB. POOH and LD setting tool. LD lubricator. f. 1tDM(1 Expra. g: Flow test well through test separator with particular emphasis on measuring the daily produced water and gas volumes at a stabilized FTP. 5) MIRU Expro Wireline Unit to set Fourth canine patch across .10,116'-10,.140' KB. a. Hold PJSM and complete Work Permit form.. b, N[1 Wireline valve with pump-in sub to 4-1/8" 5K tree. c. MU and PU sufficient 5" lubricator to seta 30' long casiu ;patch. Page 2 of 3 11/15/2007 Susan Dionne #4 Casing Patch/Reperf • • d. MiJ and pull into lubricator 2' Owen PAT-4500-005, 1.1.6-12:.6 ppf short assembly, 25' Casing Patch, setting tool, 2' Owen PAT-4500-005, 11.6-12.6 ppf short assembly ,setting tool,.. and CGL. Go to Radio Silence ,and arm setting tool, e. Take lubricator to wellhead. Pressure test lubricator to 250/2800 psi. with methanol water. RIH to desired space out for depth correlation below perforation interval, 10,116'-..10,140' I{B. POOH and LD setting tool. LD lubricator. f. RDMO Expro. g, Flaw test well through test separator with particular emphasis on measuring the daily produced. water and gas volumes at a stabilized FTP. 6) FIow well to production facility. 7) Reperforate intervals that werepatched above but showed low water production from flow test. Based on flaw test data, determine which of the four casing patch intervals can be reperforated to regain lost gas production without gaining significant produced water production. Reperforate a selected interval with 2 3/8"Owen hollow steel carriers at 4 SPF and b0 deg phasing. Flow test for at east one day or until the production rate is stabilized. 8) Flow well to production facility. Patch Dimensional and Pressure Data: Burst = 4,000 psi Collapse = 4,990 psi. Top and bottom swage running OD = 3.80" Sleeve OD = 3.75" Patch ID after setting = 3.375" CONTACTS Ken Walsh:. 907-283-1311 (w) Scott Szalkowski: 713-296-3..390 (w) 907-394-3060 (c) 713- 301-9834 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w} 907-748-2819 (c) Ninilchk Operators: 907-260-7660 ar 907-567-3248 (Susan Dianne Padj KGF Operators: 907-283-13.05 Page 3 of 3 11/15/2007 Susan Dionne #4 Easing Patch/Reperf . ~ M~ Marathon MARATHON Oil Company June 29, 2007 Tom Maunder AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Dear Mr. Maunder: . Alaska Region Domestic Production P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-1350 RECEIVED JUL 0 3 Z007 Alaska Oil & Gas Cons. Commission Anchorage ~b4- ~"?J~ Attached and submitted for your records is the Form 10-404 addressing completed work to perforate additional Tyonek gas pay in the Marathon Susan Dionne #4 well bore. This well is an active Tyonek gas producer. Also attached for your records is the well schematic, and Operations Summary Report. We have elected to wait on perforating the zone from ~-1 ~ at a latter date. At that time we will submit a 10-403 to perforate the upperzone.~ .. . \'\ \CJ<:J'\.<15 - \\J()<ts~ <=:::.~ So",:) \'~~( 107>/1/1 ?<J.');... v l ç {1. -0 '"\ If you would like any other information, please contact me at 394-3060 or wecissell@marathonoil.com. Sincerely, Wayne . Cissell Work Over Supervisor Enclosures: Well schematic Operations summary Form 10-404 Cc: AOGCC Kenai Well files WEC KJS 5CA.NNED JUL 0 6 2007 1 . Operations Abandon Performed: Alter Casing 0 Change Approved Program 0 2. Operator Name: 3. Address: . STATE OF ALASKA . ~ RECEIVED ALÄ OIL AND GAS CONSERVATION COM ION REPORT OF SUNDRY WELL OPERATIONS JUL 0 3 Z007 Repair Well Pull Tubing 0 Operat. Shutdown 0 n Plug Perforations Perforate New Pool 0 Perforate [] 4. Well Class Before Work: Development [] Stratigraphic 0 ther 'I. \ '. a I!! Waiver 0 Time Extension 0 ,·,,,,,d,, <2,,1 ' Re-enter Suspended Well 0 5. Permit to Drill Number: Exploratory 0 204-233 Service 0 6. API Number: 50-133-20547-00 Marathon Oil Company PO Box 1949, Kenai Alaska, 99611-1949 7. KB Elevation (ft): 8. Property Designation: 9. Well Name and Number: Susan Dionne #4 156' 10. Field/Pool(s): ADL - 384372 11. Present Well Condition Summary: Ninilchik I Belu a-T onek Total Depth Effective Depth Casing Structural Conductor Surface Intermediate Production Liner Perforation depth: measured true vertical measured true vertical Length 122' 1,851' 6,098' 11,927' 5,873' Measured depth: True Vertical depth: Tubing: (size. grade. and measured depth) 11,953' feet 8,367' feet 11,820' feet 8,234' feet Size MD 20' 122' 9-5/8" 1,851' 7' 6,098' 4-1/2" 11,927' 4-1/2" 11,927' Plugs (measured) Junk (measured) TVD Burst Collapse 122' 3,060 psi 1,500 psi 1,541' 5,750 psi 3,090 psi 3,397' 7,240 psi 5,410 psi 8,341' 8,341' 8,440 psi 7,500 psi 10,116' - 11,171' Gross 6,531' -7,585' Gross 4-1/2" L-80 5,873' Packers and SSSV (type and measured depth) ZXP Liner Packer 5,873' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: R8DMS BfL JUL 0 61DD7 Representative Daily Average Production or Injection Data Gas-Met Water-Bbl Casing Pressure 13500 2 n/a 17400 100 n/a 15. Well Class after work: Exploratory 0 16. Well Status after work: OilO Gas [] 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 13. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Contact Printed Name Signature Oil-Bbl o o Tubing Pressure 1114 1615 Development [] Service 0 WAG 0 o o o Kevin Skiba (907) 283-1371 Form 10-404 Revised 04/2006 'rl Title Work Over Supervisor Date ~2-~ 67 Phone (907) 283-1308 ORIGINAL þ (, ~~bmit Original Only . . MARATHON OIL COMPANY Page 1 of 1 Daily Maintenance/Repair Report Flow Assurance WELL NAME KB IGL 124 HR PROG TMD TVD IDFSO I DOLO IRPT#1 DATE SUSAN DIONNE 4 21.0 135.00 04-Nov-2006 SUPERVISOR RIG NAME & NO. AUTH MD WBS SAP/WBS COST Mickev Mullin DD0614405EXP FIELD NAME RIG PHONE MOCWI NRI I DAIL v ...~.. --~T I cr ,,, \An::I I r:O$T NINILCHIK - SUSAN DIONNE 60.0000 50.5673 . .- STATE/PROV COUNTY/OTHER LAST CASING I NEXT CASING 1 LEAKOFF ALASKA Kenai Borouqh 4.500 (in) ~ 11,927 (ft) (in) ~ 0 (ft) CURRENT STATUS @ 6AM 124 HR FORECAST Perforated new Tvonek 10116'-10140' MD. Flow well to sales. OPERATION COMMENTS Perforated new Tyonek 10116'-10140' MD. Lost String in hole 31.5' Overall Length (see ops comments for tool string dimensions) SAFETY SUMMARY MANHRS WORKED I ACCIDENT TYPE I LAST SAFETY MTG I BOP PSI TEST I LAST STOP CARD AUDIT I ~EGULATORY INSP? I LAST RIG INSPECTION 54.00 None ACCIDENT DESCRIPTION: SAFETY MTG TOPICS: Perforating safety and crane operations. Expro JSA. OPERATIONS SUMMARY FROM TO HRS FROM TO SUB PHASE OP SUBOP TRBL DESCRIPTION 08:00 08:45 0.75 AF CMPPRF SAFETY MTG_ Held PJSM with Expro and MOC personnel to review Safe Work Permit, operational hazards, Slips Trips Falls, Crane Safety 08:45 09:50 1.08 AF CMPPRF RURD ELEC Begin rigging up for explosive operation. 09:50 11 :10 1.33 AF CMPPRF SAFETY MTG Hold Explosive safety Meeting 11 :10 11:27 0.28 AF CMPPRF RUNPUL ELEC Start in hole wI 24' 3-3/8" EHSC, Run to 10116'-10140' 11:27 12:15 0.80 AF CMPPRF RUNPUL ELEC Sat down with gun @ 2270'. Pinched flow rate back to 4.4 MMCF allowing gun to drop. 12:15 12:30 0.25 AF CMPPRF RUNPUL ELEC Start Correlation Run. 12:30 13:00 0.50 AF CMPPRF RUNPUL ELEC Pull into position (10110.5' CCL depth) 10116'-10140', Wait on well to build to 1830 psig. 13:00 13:30 0.50 AF CMPPRF PERF - TBG - Shot guns @ 1700 psig (did not build to 1830 psig) and lost wait. Pressure jumped to 2000 psig. Gun fell oft line. POOH. Gun Dimensions - 3-3/8" Perf Gun @ Rope Socket - l' L, 1.43" OD, Collar Locator - 2.5' L, 3.125" OD, PX-1 Det Housing 1.5' L, 3.125" OD, 3-3/8" Perf Gun wI Subs- 26.5' L, 3.375" OD. (Overall Length 31.5') 13:30 13:45 0.25 TA CMPPRF SAFETY MTG Shut down @ 2000' and hold JSA meeting. 13:45 14:00 0.25 TA CMPPRF RUNPUL ELEC Begin Pulling line on Truck 14:00 14:30 0.50 TA CMPPRF RUNPUL ELEC Line Sticks in grease head and jumps sheave. 14:30 15:15 0.75 TA CMPPRF RUNPUL ELEC Fixed line and sheave and pulled line to within 65' of bump up depth. 15:15 15:30 0.25 TA CMPPRF RUNPUL ELEC Shut Swab Valve confirming wire is above valve. Bleed oft pressure. 15:30 17:00 1.50 AF CMPPRF RURD_ ELEC Lay down lubricator and cut 300' of line. Could possibly of left 50' of wireline in hole with full tool string. PERSONNEL DATA POB @ 06:00: COMPANY I SERVICE I NO. I HOURS II COMPANY I SERVICE I NO. I HOURS Marathon I Supervision I 21 18.00 II EXPRO AMERICAS INC I Wireline I 41 36.00 CASING SUMMARY LAST BOP TEST: LAST CASING TEST: NEXT BOP TEST: SIZE (in) ID (in) ISHOE TEST (ppq)1 MAX SICP I MD (ft) I TVD (ft) I WT (lb/ft) I GRADE I BURST (psi) 4.500 3.958 I (psi) @ (ppg) I 11,927 I 8,341 I I I Printed: 6/29/2007 5:36:02 PM J L Conductor 20" K·55 133 ppf PE Bm.. Bottom MD 0' 122' TVD 0' 122' Surface CasiOQ 9·5/8" 40 ppf L.·80 Bm.. MD 0' TVD 0' 1541' 12·1/4" hole with 403 sks 12 ppg cement TD: 11,953' MD I 8367' TVD Formation Tops: ormation Depth (MD) Depth (TVD) 912' 884' 6120' 3406' 11,953' 8367' Tyonek TD Updated 4/4/2007 Intermediate Casinq 7" 26 ppf Bm.. 0' 0' L.-80 ~ 6098' 3397' MD TVD 8-1/2" hole with 263 sks 12.5 ppg L.ead + 185 sks 15.8 ppg Tilil Tagged PBTD at 11,820' with Expro CBUGR Tagged at 11820' MD with 2" nozzle on 1-314" Coil Tubing Liner 4-1/2" 12.6 ppf L.-80 Bm.. ~ MD 5873' 11,927' TVD 3298' 8341' 6-1/8" hole with +1- 498 sks 13.5 ppg Hydril fi33 Permit to Drill 2042330 MD 11953/" ~~-_.~---_.._- REQUIRED INFORMATION ~----- J~~ DATA SUBMITTAL COMPLIANCE REPORT 4/11/2007 Well Name/No. NINllCHIK UNIT, S DIONNE 4 Operator MARATHON OIL: CO TVD 8367'/ Completion Date 3/18/2005 / Completion Status 1-GAS )¡Jt1¿ /(J ~ ~'1 API No. 50-133-20547-00-00 Current Status 1-GAS --...-- ---,~-~~.~._--"- ---- Mud Log No Samples No UIC N Directional Survey Yes -_._.~ ~.~-~~._- DATA INFORMATION Types Electric or Other logs Run: Well log Information: Electr Digital Dataset ed/Frmt Number C Las 13311 -"-~-~--- (data taken from Logs Portion of Master Well Data Maint Name I nd uction/Resistivity log log Scale Media Interval Start Stop 250 11936 OH/ CH Open Run No Well Cores/Samples Information: Name ADDITIONAL INFORMATION Well Cored? Y ® Chips Received? """Y+N-- Analysis Received? Y ..Œ,..... Comments: ~--,- Compliance Reviewed By: Interval Start Stop Sample Set Number Comments Sent Received Daily History ReCeiVed?VN Formation Tops (5/ N -- ----~---- e Received Comments 5/9/2005 GR SP paRa DENS SONIC INDUCTION (.Ias) Dir Survey (.txt, .Ias, .pm) As-Built (.pdt) Daily Drilling Rpt (.tit) - Date: ICf fLr~7 --~~ ,. . FRANK H. MURKOWSK/, GOVERNOR ALASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" 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 99611-1949 Re: Ninilchik Field, Susan Dionne Tyonek Undefined Gas Pool, Susan Dionne #4 Sundry Number: 306-340 Dear Mr . Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, DATED thiS¥, day of October, 2006 Encl. !)ùLl-.;)ò3 · f/I¿ Marathon Oil Company September 29,2006 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W ih Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Ninilchik Unit Well: Susan Dionne #4 Dear Mr. Aubert: /dhlol. . Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1311 Fax 907/283-1350 RECEIVED OCT 0 3 2006 Alaska Oil & Gas Cons. Commission Anchorage Attached and submitted for your approval is the Form 10-403 to add new Tyonek perforations in the Susan Dionne #4 wellbore. A procedure and a wellbore diagram are also included. This well is currently a Tyonek gas producer. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, fÚ-M- b. LJ~ Ken D. Walsh Senior Production Engineer Enclosures: 10-403 Sundry Well Schematic Operations Procedure cc: AOGCC Houston Well File Kenai Well File Ken Walsh VJ-s kJ I ~ I~ I 'þë;;;:" L" (4-{z..o(J(, . STATE OF ALASKA . /1 OCT 0 3 2006 AL~ OIL AND GAS CONSERVATION COM ION . APPLICATION FOR SUNDRY APPROVALS Alaska Oil & Gas Cons. Commission Anchorage 20 MC 25.280 1. Type of Request: Abandon 0 Suspend 0 Operational shutdown 0 Perforate [2] Waiver 0 Other 0 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: I 5. Permit ~ill Number: MARATHON OIL COMPANY Development [2] Exploratory 0 204-233 3. Address: Stratigraphic 0 Service 0 6. API Number: P. O. Box 1949, Kenai, AK 99611-1949 50-133-20547·00 / 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: Ninilchik Unit, Susan Dionne #4 /~ Spacing Exception Required? Yes 0 No [2] 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool( s): ADL-384372 156' Ninilchik/Beluga- Tyonek 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): 11,953' 8367' 11,820' 8234' Casing Length Size MD / TVD Burst Collapse Structural 122' 20" 122' 122' N/A N/A Conductor 1851' 9-5/8 " 1851' 1541' 3060 psi 1500 psi Surface 6098' 7" 6098' 3397' 5750 psi 3090 psi Intermediate 7240 psi 5410 psi Production 11927' 4-1/2" 11927' 8341' Liner 5873' 4·1/2" 11927' 0' 8430 psi 7500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 10406-11171' Gross / 6921·7585' Gross 4-1/2" / L·80 5873' , ./ Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 5873' / 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: / Detailed Operations Program ~ BOP Sketch 0 Exploratory 0 Development 0 Service 0 15. Estimated Date for 1 &!!J006 16. Well Status after proposed work: Commencing Operations: Oil 0 Gas [2] Plugged 0 Abandoned 0 17. Verbal Approval: Date: WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Ken D. Walsh Printed Name Ken D. Walsh Title Senior Production Engineer Signature \ ~ b ' uj~ Phone 907-394-3060 Date 9/29/2006 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: '1/)¡ IJ - ~ </)() Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 Other: RBDMS 8Ft 0 CI I} 5 2DD6 Subsequent Form Required: \CD - Ln~. w~/A APPROVED BY /~9:-06 Approved by: COM~SIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 :(p181NÀf Submit in Duplicate . . MARATHON OIL COMPANY ALASKA REGION Ninilchik Field Susan Dionne #4 Perforate Additional Pay WBS # WO.06.14405.EXP 09/28/2006 Objective: Perforate additional Class 1 Tyonek pay zones 10,078-10,082' and 10,116-10,140'. / Note the casing short joint locations at 8115-8131' and 9767-9783' KB. Perforating gun data includes 3-3/8" OD Hollow Steel Carrier loaded 6 SPF with 3- 1/8", SDP-3125-311NT3 charges. Maximum gun swell in air is 3.635" O.D. with an average entrance hole of 0.36" and penetration of 40.25". Interval Perforating 30% Underbalance SITP Recommendations 60% Underbalance FTP Recommendations 10,078-10,082' 10,116-10,140' 1821 psig 1834 psig 1050 psig 1058 psig 1) MIRV Expro perforators. a. Hold PJSM and complete Safe Work Permit form. b. Install wireline valve with pump in sub to Otis tree cap connection. c. Install sufficient lubricator for 24' of3.375" perforating guns. d. Test BOPE and lubricator to 250/3000 psi with water or methanol water /' as required by the weather conditions. e. ND lubricator and MV perforating gun. f. While RIH with perforating guns on each separate run, choke production rate to achieve the recommended surface SITP recommended above for each perforated interval. Immediately begin POOH with gun after perforating. Note rate of surface pressure build for 5 minutes. Then open well back up to flow while POOH with spent gun and RIH with new gun. If surface pressure and flow characteristics following a gun run indicates the influx of a relatively large amount of produced water, curtail further perforating and consult Reservoir and Production Engineering to decide the next step to be undertaken. g. MU and RIH with CCL, PX-l firing head, and 3.375" OD, 6 SPF loaded perforating guns as outlined in Step #2. h. Correlate cased hole bond log depth to recommended perforation intervals picked from Precision Array Induction Log run 04-Jan-2005. (Note casing short joint locations on Expro CBL). Shut well in and Page 2 of2 . . perforate while monitoring surface pressure. POOH and begin flowing well to sales after 5 minutes. 2) Continue perforating per the following schedule observing Interval Loaded Footage 10,116-10,140' 24' 10,078-10,082' -±:. Total 28' 3) RDMO Expro Wire1ine. 4) Flow well to production facility. CONTACTS Ken Walsh: 907-283-1311 (w) Dave Martens: 907-394-3060 (c) 713-296-3302 (w) 832-472-6249 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 907-748-2819 (c) 713-296-2336 (w) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 Susan Dionne #4 October 2006 Perf Adds KDW- 9/28/200611:54:31 AM TD: 11,953' MD f 8367' TVD Formation Tops: ation Beluga Tyonek TD Depth (MDI Depth (TVDI 912' 884' 6120' 3406' 11,953' 8367' 104' FSL & 1331' FEL Sec.6-T1S-R13W J Conductor 20" K-55 !.QQ. MD O' TVD O' Surface CasinQ 9-5/8" 40 ppf L-80 !.QQ. MD 0' 1851' TVD 0' 1541' PE BTC 12-1/4" hole with 403 sks 12 ppg cement Intermediate CasinfJ 7" 26 ppf !.QQ. 0' 0' L-80 Bottom 6098' 3397' MD TVD BTC 8-1/2" hQle with 263 sks 12.5 ppg Lead + 185 sks 15.8 ppg Tail Tagged PBTD at 11,820' with Expro CBLfGR Tagged at 11820' MD with 2" nozzle on 1·3/4" Coil Tubing Uner 4-1/2" 12.6 ppf L·80 !.QQ. ~ MD 5873' 11,927' TVD 3298' 8341' 6·1/8" hole with +1- 498 sks 13.5 ppg Hydrii 533 " . 116 ct/31!oC- . Alaska Business Unit I .. Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 August 29, 2006 Winton Aubert AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Dear Mr. Aubert: RECE.\\lE.O " þ..\JG 3 1 'LGaå . c,QffiO'\\SS\on .~ &. Gas Cons. I\\as\(ð Q\ ~nchOfa\\e Attached and submitted for your records is the Form 10-404 to add new Tyonek perforations in the Susan Dionne #4 well bore under AOGCC sundry approval number 306-159. A copy of the operational summary of the work performed and the current well bore diagram are also included. This well remains a Tyonek gas producer. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, {~t. W~_ Ken D. Walsh Senior Production Engineer Enclosures ...,. ~)O L[ - d3S K1:l"=fVEU . STATE OF ALASKA a ALA OILANDGASCONSERVATIONCOM~ON AUG 3 1 2006 REPORT OF SUNDRY WELL OPERA TIONSAlaska Oil & Gas Cons. Commission . ". 1. Operations Abandon U RepairWell U Plug Perforations U Stimulate U Other U -... Performed: Alter Casing D Pull Tubing D Perforate New Pool D WaiverD Time Extension D Change Approved Program D Operat. Shutdown D Perforate [] Re-enter Suspended Well D 2. Operator MARATHON OIL COMPANY 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development [] Exploratory D 204-233 3. Address: P. O. Box 1949, Kenai, AK 99611-1949 Stratigraphic D ServiceD 6. API Number: 50-133-20547-00 7. KB Elevation (ft): 9, Well Name and Number: 156' Ninilchik Unit, Susan Dionne #4 8, Property Designation: 10. Field/Pool(s): ADL-384372 Ninilchik/Beluga- Tyonek 11, Present Well Condition Summary: Total Depth measured 11953' MD feet Plugs (measured) true vertical 8367' TVD feet Junk (measured) Effective Depth measured 11,820' feet true vertical 8234' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 122 20" 122 122 3060 psi 1500 psi Surface 1851 9-5/8" 1851 1541 5750 psi 3090 psi Intermediate 6098 7" 6098 3397 7240 psi 5410 psi Production Liner 5873 4-1/2" 11927 8341 8430 psi 7500 psi Perforation depth: Measured depth: 10406-10414'.10420-10435',10458-10472' True Vertical depth: 6821-6829'.6835-6850'.6873-6887' Tubing: (size, grade, and measured depth) 4-1/2" L-80 5873' Packers and SSSV (type and measured depth) ZXP Liner Packer 5873' 12. Stimulation or cement squeeze summary: Intervals treated (measured): N/A 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 10682 2 N/A 1100 psig Subsequent to operation: 0 13450 2 N/A 1114 psig 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory D Development [] Service D Daily Report of Well Operations 16. Well Status after work: OilD Gas 0 WAG D GINJ D WINJ D WDSPL D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. I~Undry Number or N/A if C.O, Exempt: 306-159 Contact Ken D. Walsh Printed Name Ken D, Walsh Title Senior Production Engineer Signature ~ÚAA- b. uJ~ Phone 907-394-3060 Date 8/29/2006 --- :or",1 -~ Drl - AUt; ;1 1 lUUb Form 10-404 Revised 04/2006 ORIGlt~AL Submit Original Only . . . Marathon Oil Company Page 10f 1 Operations Summary Report .. Legal Well Name: SUSAN DIONNE 4 Common Well Name: SUSAN DIONNE 4 Spud Date: 12/9/2004 Event Name: MAINTENANCE/REPAIR Start: 5/9/2006 End: Contractor Name: Rig Release: Group: Rig Name: Rig Number: Date From- To Hours Code Sub Phase Description of Operatiof1ls Code 5/10/2006 08:00 - 08:45 0.75 SAFETY MTG_ CMPFLW Held PJSM and issue permit. 08:45 - 09:50 1.08 RURD ELEC CMPFLW RU Expro eline truck. 09:50 - 12:40 2.83 RUNPUL ELEC CMPFLW RIH with 3.75" Junk basket gauge ring to 10550' EL POOH 12:40 - 12:45 0.08 SAFETY MTG - CMPFLW Explosives safety meeting and start radio silence 12:45 - 12:55 0.17 PERF _ CSG_ CMPFLW Arm Gun 3-3/8" EHSC 14' 6spf 12:55 - 14:07 1.20 PERF _ CSG_ CMPFLW Perf Gun RIH 14:07 - 14:11 0.07 PERF - CSG_ CMPFLW Tie into short joint 14:11 -14:26 0.25 PERF _ CSG - CMPFLW Position gun. Close well and shoot 10458'-10472' CBL (14' Perfs) ISIP=1580psig, 5min=1700psig, 10min=1750psig, 15min=1780psig 14:26 - 15:11 0.75 RUNPUL ELEC CMPFLW Open well and POOH 15:11 - 16:30 1.32 RURD - ELEC CMPFLW OOH, RD, Leave locaton. 5/27/2006 07:00 - 07:30 0,50 SAFETY MTG_ CMPFLW Held PJSM with Expro and MaC personnel to review Safe Work Permit, operational hazards, and concurrent operation considerations, 07:30 - 09:00 1.50 RURD - ELEC CMPFLW MIRU Expro perforators to add new Tyonek perforations. Well flowing at 11.22 MMscfd at 1041 psig FTP. 09:00 - 09:45 0.75 PERF _ CSG_ CMPPRF Armed perforating gun and pulled into lubricator, Took lubricator to wellhead. Pressure tested lubricator and WL valve to 2500 psi with water. 09:45 - 11 :00 1.25 PERF - CSG_ CMPPRF RIH with 21' 3.375" OD perforating gun loaded 15' with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Had to cut flow rate to 5.8 MMscfd to get past 2100' MD. Left well flowing at 5.8 MMscfd while RIH, Correlated depth with open hole Array Induction log, Shut well in. 11 :00 - 12:30 1.50 PERF - CSG - CMPPRF Perforated 10420-10435' KB with 1575 psi WHP at 1100 hrs, SITP increased to 1700 psig in 15 min. Began flowing well at 5,8 MMscfd while POOH with gun. All shots fired and round. 12:30 - 13:00 0.50 RURD - ELEC CMPFLW RDMO Expro perforators. Left well flowing to sales. 6/1/2006 07:00 - 07:30 0,50 SAFETY MTG_ CMPFLW Held PJSM with Expro and MOC personnel to review Safe Work Permit, operational hazards, and concurrent operation considerations. 07:30 - 08:30 1.00 RURD - ELEC CMPFLW MIRU Expro perforators to add new Tyonek perforations. Well flowing at 11.89 MMscfd at 1085 psig FTP. 08:30 - 09:00 0,50 PERF _ CSG_ CMPPRF Armed perforating gun and pulled into lubricator. Took lubricator to wellhead. Pressure tested lubricator and WL valve to 2500 psi with water. 09:00 - 11 :00 2.00 PERF _ CSG_ CMPPRF RIH with 10' 3.375" OD perforating gun loaded 8' with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Had to cut flow rate to 6.2 MMscfd to get past 1900' MD. Left well flowing at 6.2 MMscfd while RIH. Correlated depth with open hole Array Induction log, Shut well in, 11 :00 - 12:30 1.50 PERF - CSG_ CMPPRF Perforated 10406-10414' KB with 1700 psi WHP at 1100 hrs. SITP increased to 1800 psig in 15 min. Began flowing well at 6,2 MMscfd while POOH with gun. All shots fired and round. 12:30 - 13:00 0,50 RURD_ ELEC CMPFLW RDMO Expro perforators. Left well flowing to sales. Printed: 8/28/2006 2:47:06 PM · 104' FSL & 1331' FEL Sec. 6- T1 S-R13W TD: 11,953' MD / 8367' TVD Depth (MDI Depth (TVDI 912' 884' 6120' 3406' 11,953' 8367' Conductor 20" K-55 133 ppf PE IillL ~ MD 0' 122' TVO 0' 122' Surface Casinq 9-5/S" 40 ppf L-80 aTe IillL aottom MD 0' 1851' TVD 0' 1541' 12-1/4" hole with 403 sks 12 ppg cement Intermediate Casinq 7" 26 ppf L-SO aTC IillL ~ MD 0' 6098' TVD 0' 3397' S-1/2" hole with 263 sks 12.5 ppg Lead + 185 sks 15.S ppg Tail Tagged pam at 11,820' with Expro CaLlGR Tagged at 11820' MD with 2" nozzle on 1-3/4" Coil Tubing Liner 4-112" 12.6 ppf L-SO IillL Bottom MD 5873' 11,927' TVD 3298' 8341' 6-1/S" hole with +/- 498 sks 13.5 ppg Hydril 533 · Alaska .t Team Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/565-3076 ì= ,~ June 27, 2006 " "j ~~. I~¡'. 'I,. ¡',)' 0 ¡;;:",: JLj¡\!, . ~ _ :,} j~¡~3k:a 8~ C ¡}ffif\1Î ~¡Û Q n Mr. Robert Crandall Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Ani:h(lraG~ 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, ¡d f/P Keith Wiles Senior Land Professional Enclosures 8(~Ll-'d3-) ,- - - ~-;l;W - - -l- - - - 3:1~3W - - - T- - - -;2-1N-13;- - - - ¡ - - - ;-;-~ - - - ¡ I I I I I I I I I I I I I : TRACT#ó : I I I ADL 389180 : I r-J-------,--l---- ____,__J I 2-1S-14W I 1-lS-14W 6-1S-13W 5-1S-13W I I I I I I TRACT # 10 I ADL 359242 CT #124 I I I I I I I I I TRACT# 8 I I ADL 384372 I I I I I I ¡ - - -1~S:4; - - - 12-1S-14W- - - - - - -8-1S-~ - - - -l I I I I I I I I I I I I I I I I I I I L_________~__________~__________L_________~ MARATIION OIL COMPANY NINILCH1K UNIT DIONNE PAR'fICIPATION AREA July 1,2003 NINILCHIK UNIT SUSAN DIONNE PARTICIPATION AREA EXHIBIT "C" JULY 1, 2003 Page 1 of 2 Schedule of Leases State: Alaska RECORDING DATA Ninilchik DESCRIPTION OF PROPERTY GROSS TRACT LESSOR! ROYALTY OWNERS ROYALTY ORRIS LESSEEI WI OWNER WI% BOOK PAGE DISTRICT Unit Tract ACRES PARTICIPATION No. FACTOR STATE OF ALASKA LANDS T1N, R 13W, S.M. 360.00 20.4479231% State of Alaska 12.50% Marathon Oil Company 60% 6 Sec. 32: SEl4 & EJ2SW/4 & SW/4SW/4 ADL #389180 Union Oil Co. of California 40% Sec. 33: W/2SW/4 T1S, R 14W, S.M. 522.57 29.6818644% State of Alaska 12.50% Marathon Oil Company 60% Sec. 1: NEJ4NEJ4 & S/2NEJ4 & SEl4 & ADL #384372 Union Oil Co. of California 40% 8 NEJ4SW/4 & S/2SW/4 Sec. 12: N/2NEl4 & NEl4NW/4 T1S, R 13W, S.M. 708.72 40.2551446% State of Alaska 12.50% James W. White 3.5% Marathon Oil Company 60% Sec. 5: All tide and submerged land ADL #359242 James L. Thurman 1/3 x 3% Union Oil Co. of California 40% 10 Sec. 6: All tide and submerged land Tucson, Ltd. 1/3 x 3% Sec. 7: All tide and submerged land lying within Metro National Bank and/or V. Paul Gavora 1/3 x the N/2NW/4 (56.72 acres) 3% . State Total: 1591.29 COOK INLET REGION INC. (CIRI) TRACTS CIRI Total: 3.0399246% Cook Inlet Region, Inc. 20.00% Marathon Oil Company Union Oil Co. of Camornia T1S, R 13W, S.M. See 7: GLO Lot 1 . 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 ArthurT. Maze 50% Union Oil Co. of California 40% 321 654 123 Subdivision (Plat # H-79-5) that lies within the NEJ4NW/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 NEJ4NW/4, a part of GLO Lot 2 (estimated 0.Q1 acres) T1S, R 13W, S.M. 9.67 0.5492539% Richard L. Millett 50% 12.50% Marathon Oil Company 60% 311 541 Homer See, 5: That part of Lots 8, 9 & 10 of Sunset Arthur T. Maze 50% Union Oil Co. of California 40% 321 654 125 Bluffs Subdivision (Plat # H-79-5) that lies within the NEJ4NW/4, a part of GLO Lot 2 (estimated 9.67 acres) NINILCHIK UNIT SUSAN DIONNE PARTICIPATION AREA EXHIBIT "C" JULY 1, 2003 Page 2 of 2 Schedule of Leases State: Alaska RECORDING DATA Ninilchik DESCRIPTION OF PROPERTY GROSS TRACT LESSOR! ROYALTY OWNERS ROYALTY ORRIS LESSEE! WI OWNER WI% BOOK PAGE DISTRICT Unit Tract ACRES PARTICIPATION No. FACTOR PATENTED FEE LANDS (continued) T1S, R 13W, S.M. 46.20 2.6241501% Wayne Findley & E. Irene Findley 100% 16.67% Marathon Oil Company 60% 247 322 Homer Sec. 5: That part of GLO Lot 3 lying within the Union Oil Co. of California 40% 135 SW/4NW/4 (estimated 8.0 acres and all of GLO Lot 4 (38.2 acres) T1S. R 13W, S.M. 10.06 0.5714059% Bea Bachner 100% 12.50% Marathon Oil Company 60% 250 399 Homer Sec. 6: GLO Lot 1 Union Oil Co. of California 40% 144 T1S, R 13W, S.M. 49.52 2.8127254% Paul H. & Susan M. Dionne 100% 16.67% Intrepid Production Company 5.33333% Marathon Oil Company 60% 243 195 Homer Sec. 6: GLO Lot 2 Union Oil Co. of California 40% 145 . Fee Land Total: Total of all Tracts: 115.76 1760.57 100.0000000% RECAPITULATION BY LAND CATEGORIES: 1 2 3 State of Alaska Tracts Cook Inlet Region, Inc. Tracts Fee Tracts TOTAL: 3 Tracts 1 Tract 6 Traèts 1591.29 Acres 53.52 Acres 115.76 Acres 1760.57 Acres 90.3849322% 3.0399246% 6.5751433% 100.0000000% WORKING INTEREST RECAPITULATION 1 2 Marathon Oil Company Union Oil Company of California 1056.34 Acres 704.23 Acres 1760.57 Acres 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. '~ '''''-'"' Amended Ninilchik 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 Ninilchik Unit Agreement NINILCHIK UNIT AGREEMENT RECIT ALS 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 Ninilchik T Tnit A CTrppml'"nt 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 In 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. A _ _~ ..J _..J .,., T ~ __ ~ 1 _ L ~ L T L_ ~ L A - 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. A ......""....r1""r1 lIt.T~....~1,...t..a,. T T....~4- ^ ~,...,...___4- '- ~" 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 shall 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. A mpnrlprl N1n11~h1k T Tn1t A OTPP1TIpnt D,..,...... 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 Ninil~hik r Jnit A OTPpmpnt n_ __ :: \;c~_ 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 11 t'YI13nrl13rll\.T1n11r-h11r T Tn1t 11 n?""""~""nt T1I_ _ _ r 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") shaH 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. A mpnnpn Ninilr'hi1c T Tn;t A OT~~1'Y1Øt"lt n "- 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 shall 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 will be considered a Unit Well 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 shall 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 shall notify the Commissioner when Sustained Unit Production begins from each Participating Area. 9.2. Each application for approval of a Participating Area shall include Exhibits C, D, E and F. If approved by the Commissioner, the area described in Exhibit C and depicted in Exhibit D shall be a Participating Area, and the allocation of Participating Area Expenses and Unit Expenses described in Exhibits E and F shall be effective on the effective date of the Participating Area. 9.3. A separate Participating Area shall be established for each Reservoir in the Unit Area. If one Reservoir underlies another Reservoir in whole or in part, separate Participating Amenc1ec1 Nini1chik T Jnit Aprp,p,mp,nt Po::1ICTP Q 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. If the 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 thermal 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 AQfeement p<;¡(1'~ 0 ~ """'.~j' 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 83.3 71 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 A mended Ninilchik T Tnit A PTeement p,;¡(1'P> 1 () 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 83.3 71 (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 Amendeci Ninil~hlk T Tnit A or~pm~nt n~ ~_ 1 1 ~~ '~/ 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  n1pnrtPrt Ninilf'hi1r T Tnit  CTrPPn1pnt D,.."""" 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 require 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 minimum royalty obligation. The rental due under State law, as amended, must be paid in lieu of minimum royalty. 12.9. All rights and obligations relating to the State's net profit share will be determined in accordance with 11 AAC 83.201 - 11 AAC 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 mpnc1pc1 NinilC'hik T Tnit A O"rppmpnt n~ __ 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.  mpn~p~ N;n11t"h1'lr T Tn;t  OTPpmpnt D............. 1 A 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 Interest 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 Unit AQTeement P~ap 1" '~ 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, aH improvements such as roads, pads, and wens 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 aU further responsibility as to their maintenance, repair, and eventual abandonment and rehabilitation. Subject to the above conditions, the Unit Operator shaH deliver up the Unit Area in good condition. ARTICLE 16: COUNTERPARTS 16.1. The signing of counterparts of this Agreement shaH have the same effect as if an 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 shaH 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 permissible, 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. AH 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 Nini1chik Unit A[ITeement P-::tCl'P 1 r... Address of/he Unit Ooerator: Fax: Address of/he 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. A mpnnpn NinilC'hik T Tnit A OTPpmpnt n~ ~~ 1..., "'-> 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 If there is no well certified as capable of producing ünitizeà 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, terminate this Agreement after giving the Unit Operator notice and an opportunity to be heard. The Commissioner will give notice, by mail, of the termination, 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 terminate 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. ~\\\\\UII"fllbl~ ~ ~'\.o\.. J. <'þ ~ ~ ~~...........~~ ~ ~ ~..... .....~ ~~.. " , .. ~ .~ : N' '-()TARY\ ~ ; \ P"UB' . '" L' Tc j v..æ ~., .... ~~.I ..: ~~ ~~ <P .... ....~.~ "~~ ?:t ¡.¡;.... ....~. ~~ ~ ~ ç OF þ..\.. ~ . VI/I/'IIIm m\\"~ ~in~f~ My Commission Expires: 10... 9,. oS Amended Ninilchik Unit AQ1"eement P~H),P. 1 ~ IN WITNESS OF THE FOREGOING, the parties have executed this Unit Agreement on the dates opposite their respective signatures. WORKING INTEREST OWNERS UNION OIL COMPANY OF CALIFORNIA BY:~c{~ vin A. Tabler Attorney in Fact Date: 'i!....1/-;).003 STATE OF ALASKA ) )5S. THIRD JUDICIAL DISTRICT ) This certifies that on August 8, 2003, before me, a notary public in and for the State of Alask~ duJy commissioned and sworn, personally appœared Kevin A. Tabler, Attorney in Fact for Union Oil Company of Califorina known to JUe 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. ~\\\\mlllllll~ ~.. '" A. S ~~ ~g~.~~i1;;;,J.:,A~~ $jf~ ..'c1"" ~;~~ '~l~ ,\~~ :: i NOTARY1 iË :i ~ \ PUBLIC./ tJ'~" ~ ...... " ~ ~'::',!.' fe. ~QI!..,.....~,,", ~'i' ÔF·'~\.~~~ "IIIIII"\\\\~ ~d tJ§k.-4b TARY PUBLIC in an for Alaska My Commission Expires: ,;; -I 0/ - a ~ '~ Amended Ninilchik Unit Agreement Page 19 T () I J aon J en'? no 'f"IU vu ,I rn.,n., ." """'In I I I nf'. T" T" If'''''''' nf'\ P'\nl I "'-" TABLE OF CONTENTS 1. INTRODUCTION AND BACKGROUND.............. ................................................................ 1 n. APPLICATION FOR THE FORMATION OF THE NINILCHIK UNIT ................................ 2 m. 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 U ni t 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 (ND Tract 5), ADL 384314 (ND Tract 2), ADL 384318 (ND 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-l. 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 D:MEM-27-83 (royalty revised 7/83). As a result of a litigation settlement agreement, the primary 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 NINILCffiK 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 05.010(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 Nini1chik 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 P::.crpo d ""-" 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 Ninilchik. 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 Ninilchik 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 Ninilchik 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 seisllÙc data along the intertidal trfuîsition 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 Ninilchik 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 Ninilchik anticline to delineate gas potential within both the Tyonek and overlying Sterling reservoirs. Marathon has justified the size of the Ninilchik 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 Ninilchik 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 Ninilchik 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. P~crp h ~ 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 Ninilchik 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 Nini1chik 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 Ninilchik 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 1, 2001, 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 and even longer before the state receives royalties and taxes on any commercial production. The potential long-term economic benefit of exploration and earlier development of the Ninilchik Unit area outweighs the short-term loss of potential bonus payments. The ten State of Alaska leases proposed for the Ninilchik 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 Ninilchik 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 Ninilchik Unit area. 11 MC 83.306(3) and 11 AAC 83.3 28. Furthermore, Marathon and U nocal, 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 AAC 83.316(c). The majority WIGs 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 and 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 administrati ve burdens of operating and regulating this unit. The formation of the Ninilchik 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 perrnits on performance of mitigation measures in addition to those in the modified leases and the Agreement, if necessary or appropriate. Compliance with mitigation measures will minimize, 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 determined 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 Nini1chik Unit. Page 10 '~ "0_' 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 Vnocal 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 warranted 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 AAC 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 m.A.2 of this Decision. The unit operator must also submit 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, economic benefits to the state outweigh the economic 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 dnr_appeals@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:OGOI03001NUAGREEMENTAPPRV ~Q~. Mark D. Myers, Director Division of Oil and Gas a'¡'o{;~ 30/ 26"1 Date Attachments: 1. Exhibit B, Map of the Unit Boundary 2. Cook Inlet Areawide 1999 Mitigation Measures Ninilchik_ U ni CDecision 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 will 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 lease 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 p'lan of operations from the Director before conducting exploratory or development activities (11 AAC 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, stats, 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, critical 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 uGovernmental powers to Regulate Oil and Gas Exploration, Development, Production, and Transportation" Chapter Eight of this finding. In addition, Appendix 8 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 Conservation 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 alternative 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 AONR 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), AOEC (Alaska Department of Environmental Conservation), OL (Division of Lands) and OOF (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: Chame 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 fishbearing waterbodies must be surrounded by a screened enclosL,_ 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, KasHof, 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 T6N, R10W and Section 6 in T5N, R10W; and all land within Section 1 in T5N, R11W. f. A fre$h 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 jess 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 iocal 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 KPS, MOA, MSS 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 0. 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 prehi~toric, historic, or archaeological 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 fishbearing 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 wâste 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 AAC 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 will comply with the applicable provisions of 18 AAC 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 wilt be allowed as necessary to facilitate annular injection and/or backhaul operations in accordance with ADEC solid waste regulations 18 AAC 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 wi!l 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 area: 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 AAC 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 Area management plans. Directional drilling from adjacent sites may t 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 nesting 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 lessee. *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 habitats 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 burled 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 human/bear 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 privatb 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 Tule 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. TIN - RI4W I I I I I I + I I I I I I T2N - RI2W T2N - R13W EE DETAlL "G" FOR TR.'cCTS 45A -45AH TIN - R13W FOR TRACTS 46-70 I I I I I MARATHON OIL COMPANY -~--- NINILCHIK UNIT · KEN· I PENINSULA BOROUGH, AK SEE DETAIL "C" FOR TRACTS 100-140 TIN -RI2W tv1CC 50% "INION 40% EXHIBIT "8" ~TRACT NUMBEe TATE OF ALASKA LANDS EDERAL LÞ..NDS T1S - R13W IVRsrTY OF ALASKA LANDS 22 IRI LANDS 1S - R14W PATENTED FEE LANDS t; ð ~ ð ~ ~~ NJINILCHIK UNIT - DETAR. I'AII (TRACTS 46 -10) @ @ @ @~~ ~ @ NINILCHIK UNIT = DETAIL "B" (TRACTS 00 -98) @ cw Q I g @ .....Y-..T......... ~TTTTT 1\rT-...TT""'" -..........,,.....,........... 8"_.8 s'nr<I......... J.. ".....M\M....... ................ ..01 A^-.. 12 (ú) @ (@ @ 0] @ o (!i9 (@ @ (@ NINILCHIK UNIT - DETAIL "D" (TRACTS 148-156) NINILCHIK UNIT - DETAIL "E" (TRACTS 164 -186) @ @ @ ~TINILCHI UNIT... DETAIL "F" (TRACTS 44A.. 44AL) c 45AG 45AF 45B 45R 458 45T 45U 45C 45AC 45AE 45AB 45X 45D 45Q 45W 45E 45P 45N 45F 450 ~G 45Y 45H 451 45J @ NINILCmK UNIT em DETAIL UGH (TRACTS 45A = 45AH) "-" NINILCIDK UNIT œ DETAIL "H" (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 55.6390000/0 37.092666% 4.4413140/0 2.827020% Unit Total 25806.79030 100.0000000/0 Ninilchik 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°,10 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 T 1 N - R 13W 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% I ChAvron lJSA Inr. 65% 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% Cnevron USA Inc. 6.5% 16 T 1 N - R 13W 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 T1N-R13W 120.0000 U.S,A. Uncommitted Section 34: NW/4SW/4 & S/2NW/4 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 2-5-05,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 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 Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Page 2 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 STATE OF ALASKA (CONTINUED) 1 T 2N - R 13W 320.0000 ADL #384318 State of Alaska 12.5% Marathon 30% Section 36: S/2 12/31/0 1 Union 20% Aurora 50% 12 T 1 N - R 12W 59,9600 ADL #390363 State of Alaska Marathon 60% Section 5: Lot 3 & 9/30/201 0 Union 40% E/2SE/4NW/4 13 T 1 N - R 12W 40.0000 ADL #390363 State of Alaska Marathon 60% Section 7: SE/4NW/4 9/30/2010 Union 40% 3 T1N-R 12W 3095.5500 ADL-389737 State of Alaska 5% during royalty Chevron USA, Inc. 6.5% x 100% Marathon 60% Section 6: That part of 1/27/60 reduction & 12.5% after royalty Union 40% the E/2 lying below the reduction (as to that part of the lease in line of mean high tide the Falls Creek Field) and 12.5% as to (estimated at 30.56 that part of the lease lying outside the acres) Falls Creek Field T 1 N- R 13W Section 1: NW /4 and W/2NE/4 and NE/4NE/4 and W /2SW /4 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 ~. '- 1.........,./ Marathon == Marathon Oil Company Union = Union Oil Company of California Aurora == Aurora Gas, L.L.C. Page 3 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT itA" 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 & SEl4SW/4 reduction Sec. 12: NE/4NW/4 & N/2NE/4, except that part lying above the line \ of mean high tide T1 N, R 12W, S.M. , Sec. 6: W /2 except that part lying above the line of mean high tide 4 T 1N - R 13W 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 & SW/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, 5, 6, 7 & 8 and all tide and submerged land 5 T1N-R13W 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 EXHIBIT "A" NINILCHIK UNIT AREA, KENAI PENINSULA BOROUGH, ALASKA Tract No, Description of Lands Number of Serial Number & Basic Royalty & Ownership Percentáge Overriding Royalty & Percentage Working Interest & Notes Acres Expiration Date of Percentage Lease STATE OF ALASKA (CONTINUED) 6 T 1 N - R 13W 4607.0200 ADL #389180 State of Alaska 12.5% Marathon 60% Section 20: E/2 & SW/4 1/31/07 Union 40% 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 7 T 1 N - R 14W Section 160.0000 ADL #390085 State of Alaska Marathon 60% 36: SE/4 11/30/09 Union 40% 10 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 I C'. ...: q........ "A H'" 11 T 1 S - R 13W 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 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) 8 T1S-R14W 3507.8400 ADL #384372 State of Alaska 12.5% Marathon 60% Section 1 :AII 12/31/01 Union 40% 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 . I~nrl 9 T1S-R14W 160.0000 ADL #390105 State of Alaska 12.5% Marathon 60% Section 15:SE/4 11/30/09 Union 40% 185 T1S-R14W 12.2420 ADL #390105 State of Alaska 12.5% Marathon 60% Section 13: State of 11/30/09 Union 40% Alaska Highway Project Number F-021-1(3), ., .þ- 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 ( Marathon:;::: Marathon Oil Company Union:;::: Union Oil Company of California Aurora:;::: Aurora Gas, L.L.C. Page 6 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 STATE OF ALASKA (CONTINUED) 186 T1S-R14W 0.5030 ADL #390105 State of Alaska 12.5% Marathon 60% Section 13: A 0.503 11/30/09 Union 40% 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 ALASKA TOTAL: 19995.8650 Marathon::;; Marathon Oil Company Union::;; Union Oil Company of California Aurora::;; Aurora Gas, L.L.C. Page 7 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2·5-05.xls EXHIBIT IIA" NINllCHIK 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 T1N-R12W 40.0000 Tract #2 University of Alaska 12.5% Marathon 60% , Section 6: SE/4NE/4 12/31/07 Union 40% 20 T1N-R13W 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 T1S-R13W 40.0000 #2-05 University of Alaska 12.5% Marathon 60% Section 8: NE/4NE/4 6/30/02 Union 40% UNIVERSITY TOTAL: 661.3500 Page 8 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. 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 T 2N - R 12W 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 I' 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.n:=\o;:\ 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 T 1 N - R 13W 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 and 18 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 EXHIBIT "A" NINllCHIK 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 (continued) 29 T1N-R13W 1.9000 C-061505 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 33: 9/22/2003 Union 40% Government Lot 5 30 T 1 S - R 13W 694.7800 C-061505 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 4: SW/4NW/4 9/22/2003 Union 40% 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 T1 S-R14W ~ 1?'lnt1 31 T1S-R13W 163.2500 C-060385 Cook Inlet Region, Inc. 100% x 20% Marathon 60% Section 9: NW/4NW/4 6/1/05 Union 40% Section 18: Lots 1, 2, 3, NW /4SE/4NW /4 and N/2NW/4NE/4 CIRI TOTAL: 1519.6500 Marathon = Marathon Oil Company Union = Union Oil Company of California Aurora = Aurora Gas, L.L.C. Page 10 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls EXHIBIT II 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 T2N-R12W 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 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 33B 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 33C 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 33D 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) 33E 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 33F 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 EXHIB. f "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 34 T2N-R12W 158.0000 8/1/08 JWYW, LLC 5/6 x 12.5% Marathon 60% Section 28: N/2NW/4 & 1/10/08 Stephen Rex & Marilyn Lange 1/6 x Union 40% SW /4NW /4 (less the 2 12.5% 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) 35 T 2N - R 12W 40.0000 Leonard & Evelyn D. Keener 100% x Aurora Gas, LLC Section 28: Tracts A & 12.5% B of plat #79-4 and Lots B-1 & B-2 of Plat #81-118 a/d/a SE/4NW /4 36 T 2N - R 12W 2.0000 12/1/2011 Harold A. Pederson Marathon 60% Section 28: A tract Union 40% beginning at the SE/c of the SW/4NW/4; TH. North 500'; TH. West 175'; TH. South 500'; TH. East 175' to POB. 37 T2N-R12W 160.0000 Rodney & Vicki Andrews 100% x Aurora Gas, LLC Section 28: NE/4 12.5% 38 T 2N - R 12W 147.4500 1/9/2008 Mary R. Hawkins 75% x 12.5% Marathon 60% Section 29: Lots 2 & 3 Charles F. Hawkins 5% x 12.5% Union 40% & N/2SE/4 less a tract Richard B. Hawkins 5% x 12.5% in the Northeastern corner of the N/2SE/4 owned by Vernon Andrews and Leonard Keener (excluded tract is Tract #39 of this exhibit) Marguerite Hawkins 5% Uncommitted James Hawkins 5% Ian Hawkins, deceased 5% Page 12 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 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 3.9100 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 .11 00 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% 42 T 2N - R 12W 22.0000 1/1 0/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: The 100% X 12.5% Union 40% SE/4NW/4Iying 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 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 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 8cre) 44A-2 T2N-R12W 0.5000 1/10/2008 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) 44B-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 1/10/2008 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 T2N-R12W 1 .4200 1/1 0/2008 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% 44G 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. SaQe 50% Uncommitted 44H T 2N - R 12W 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 EXHIBIT II 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 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 44K 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 44L 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) 44M 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 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 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% 440 T 2N - R 12W 25.5260 1/1 0/2008 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) 44P 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 44Q T 2N - R 12W 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 - R 12W 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 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 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 44Z T2N-R12W 0.4000 7/1/2011 Virgil Robbins 100% Marathon 60% Section 32: Lot 12, Union 40% Clam Gulch Subdivision, plat #90- 28 44AA T2N-R12W 0.8000 Deborah Lee Murphy 100% Uncommitted Section 32: Lot 13A, Clam Gulch Subdivision, plat #90- 28 44AB T 2N - R 12W 0.4600 7/1/2011 Lawrence R. & Caroline E. Rebischke Marathon 60% Section 32: Lot 6, Clam 100% Union 40% Gulch Subdivision, Conley 1977 Addition, plat #78-43 44AC T 2N - R 12W 0.9600 6/20/2011 Karen Lorraine Landwehr 100% Marathon 60% Section 32: Lots 7 & 8, Union 40% Clam Gulch Subdivision, Conley 1977 Addition, plat #78 43 Page 20 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 44AD T 2N - R 12W 0.6700 7/1/2011 Lawrence R. & Caroline E. Rebischke Marathon 60% Section 32: Tract 8, 100% Union 40% Clam Gulch Subdivision, plat #K509 44AE T 2N - R 12W 4.0200 1/1 0/2008 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 Arlvn 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 8. 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% ( ( Page 21 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 44AH-2 T2N-R12W 0.2372 1/10/2008 Per Eric Osmar 50% Marathon 60% Section 32: Lot 4, S,F. & Francis B, Rebischke 50% Union 40% 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 8/1/2011 William Donald Reeder 50% Marathon 60% Section 32: Lots 5 & 6, Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies within Tract "A" of former plat #K- 509 (est. 0.137 acre) Arlvn H. & June C. Thomack 50% Uncommitted 44AH-4 T 2N - R 12W 0.2372 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lots 5 & 6, 50% x 12.5% Union 40% Thomack Subdivision, Plat #K-1575 in so far as it lies outside Tract "A" of former plat #K- 509 (est. 0.2372 acre) Arlvn H. & June C. Thomack 50% Uncommitted 44AI T2N-R12W 3,0300 1/10/2008 Per Eric Osmar & Frances L. Osmar Marathon 60% Section 32: Lot C-10 of 50% x 12.5% Union 40% Thomack Subd., Plat #1502 Arlvn H. & June C. Thomack 50% Uncommitted 44AJ T2N-R12W 0.2800 Arlyn H. & June C. Thomack 50% Uncommitted Section 32: Lot 3, Thomack Subdivision, Plat #K-1575 7/1/2011 Robert C. & Rosemary C. Johnson Marathon 60% 50% Union 40% Page 22 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 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- ,..1'\ .J::mAt & Rnnalrl - 50% L 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% 458 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 it7~-AQ Theodore L. & Ann C. Morris 37.5% Uncommitted Phvllis Edwards 12.5% 45C T 2N - R 12W 0.4600 1/1 0/2008 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 #7r:._~Q 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&;'_Ra -. . I R. Ann r. Mnrri~ ~7f)Ofn I rµr' 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 T2N-R12W 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 45H T 2N - R 12W 0.4800 1/1 0/2008 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 nAn 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 Theodore L. & Ann C. Morris 37.5% Uncommitted Mildred A. Drum 12.5% 45L 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 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% t 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 1/1 0/2008 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 1/1 0/2008 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 1/1 0/2008 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 1/10/2008 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 II 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. Brookino 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 1/10/2008 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 & Marv 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 1/10/2008 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 1/10/2008 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 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 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 Sallv A. Lawrence 12.5% 45AC T 2N - R 12W 0.5100 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 1/1 0/2008 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 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 45AF T 2N - R 12W 0.8800 1/10/2008 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 T2N-R12W 0.8800 1/10/2008 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 T2N-R12W 0.3900 1/1 0/2008 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 Nini/chík Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon::: Marathon Oíl 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 46 T 2N - R 12W 128.0500 12/19/2009 Trudy S. Webb 100% x 12.5% Marathon 60% Section 32: Lot 3 and Union 40% SW /4SW /4 T1N-R12W 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- 47 T1N-R12W 41.0000 5/1/2003 William N. Wallner 50% x 12.5% Marathon 60% Section 5: Lot 4 Union 40% Section 6: All of Lot 1 lying to the south and east of the Sterling Highway Helen L. Maaionos 50% Uncommitted 48 T1N-R12W 2.6690 10/13/1970 JoAnn Steik 1/3 x 50% x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Tract #1 of James Thebaut 1/3 x 50% x 12.5% 6.5% x 100% Union 40% Udelhoven Subdivision Shirley Cox 1/3 x 50% x 12.5% (Plat #H77-70), a part Ashley Udelhoven 1/6 x 50% x 12.5% of government Lot 2 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% ( Page 31 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 49 T1N-R12W 29.9510 10/13/1970 JoAnn Steik 1/3 x 50% x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Tracts 2, 3, James Thebaut 1/3 x 50% x 12.5% 6.5% x 100% Union 40% 5, 6 and 7 of Shirley Cox 1/3 x 50% x 12.5% Udelhoven Subdivision Ashley Udelhoven 1/6 x 25% x 12.5% (Plat #H77-70), a part Jesse Udelhoven 1/6 x 25% x 12.5% of government Lot 2, Jennifer Wiederspohn 1/6 x 25% x less that part of Tracts 12.5% 2 and 3 lying outside Ann Davis 1/6 x 25% x 12.5% the SW/4NE/4 and also Dawn Dutton 1/6 x 25% x 12.5% any mineral rights lying Sandra Udelhoven-Taylor 1/6 x 25% x under the roadbed of 12.5% the Sterling Highway James Udelhoven 25% x 12.5% right of way passing through GLO Lot 2 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 "Au 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 51 A 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/4 lying 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 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 54 T1N-R12W 2.6600 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc. Marathon 60% Section 6: Block 3, Lot Charles Weyhaupt 1/4 x 3/4 x 12,5% 6.5% x 100% Union 40% 2 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 Roberta Ann Kizer 1/4 x 12.5% S/2SE/4 55 T 1 N - R 12W 2.8800 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% 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 David William Petty1/4 x 12.5% S/2SE/4 56 T1N-R12W 18.6100 3/21/1963 James Reinhardt 1/4 x 3/4 x 12.5% Chevron USA, Inc, Marathon 60% Section 6: Block2, Lots Charles Weyhaupt 1/4 x 3/4 x 12.5% 6.5% x 100% Union 40% 2, 3, 5, 6, 7 and Block Thomas Weyhaupt 1/4 x 3/4 x 12.5% 3, Lots 1, 3 and 4 and David Weyhaupt 1/4 x 3/4 x 12.5% Block 4, Lots 1 and 2, Norma Jeanne O'Riorden now Nichols and Block 5, Lots 2 and 1/6 x 12.5% 3 of Clammers Haven Walter G. Williams 1/12 x 12.5% 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 Page 34 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls 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: B/ock5, 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 T1N-R12W 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 EXHIBIT IIAII 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 62 T 1 N - R 12W 34.9900 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 lying Thomas Weyhaupt 1/4 x 3/4 x 12.5% in the SE/4SW/4, less David Weyhaupt 1/4 x 3/4 x 12.5% Block 1, Lot 9 and Norma Jeanne O'Riorden now Nichols Block 2. Lots 3 and 4 of 1/6 x 12.5% Clammers Haven Walter G. Williams 1/12 x 12.5% 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 Page 36 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 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 T1N-R12W 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, 14and 15 of Falls Creek Ridge 1978 Subdivision (Plat #H78- 23 replatted #H78-71), a part of government Lot 2 67 T1N-R12W 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 2-5-05.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 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 1N - 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 10,3100 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 T 1 N - R 13W 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 8.6100 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 T1N-R13W 7.7300 Dale Wayne Woodhead 100% Uncommitted Section 23: A part of Government Lot 4 described as Tract D of the Woodhead Subdivision platted in Plat #H-83-11 0 77 T1N-R13W 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 T 1 N - R 13W 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 80 T1N-R13W 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 80A 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% Doualas F. Blossom 1/5 x 12.5% 81 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% Hiahwav Doualas F. Blossom 1/5 x 12.5% ( Page 41 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 82 T1N-R13W 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 T 1 N - R 13W 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 T1N-R13W 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- 1!1 \ 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- 1 !1\ Page 42 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 86 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\ 87 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- 115\ 88 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- 1f\\ 89 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 I PATENTED FEE LANDS 90 T 1 N - R 13W 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- L151 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 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 94 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\ 95 T1N-R13W 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\ 96 T1N-R13W 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) 97 T1N-R13W 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- 115\ ( ( 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 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 98 T1N-R13W 44.3700 4/1/2004 Janet M. Clucas 1/5 x 12.5% Marathon 60% Section 27: All of the Martha E. Ogren 1/5 x 12.5% Union 40% S/2SE/4 lying north and Judith A. Johnson 1/5 x 12.5% west of the Sterling Kathleen M. Jackinsky 1/5 x 12.5% Highway, less and Douglas F. Blossom 1/5 x 12.5% except Lots 1 - 24, inclusive of Corea Bend Subdivision (platted as Plat #H-85- .. ~\ 99 T 1 N - R 13W 81,7600 1/01/05 Lois B. Jones 50% x 12.5% Marathon 60% Section 33: That part of 4/01/04 Michael Thomas Russ & Deborah Lee Union 40% Government Lots 3 and Russ (H&W) 48% x 12.5% 4 and the SE/4SE/4 lying east of Sterling l-linhlA/<:I\/ Gaylord O. Smith & Luella Smith (H&W) Uncommitted 1% Basil S. Bolstridge & Elizabeth W. ~ II-IR. 'AI' 10/_ Page 46 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 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- 1 01, 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 IH&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 EXHIBrf "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. Bolstridae lH&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. Bolstridae lH&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 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 104 T1N-R13W 4.6700 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 8 of Seaside Terrace, platted in Plat #H82-101 Norman E. Seitz & Linda L. Seitz Uncommitted (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae lH&W) 1% 105 T1N-R13W 5.2800 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 9 of Seaside Terrace, platted in Plat #H82-101 Kallie R. Mousaw 50% Uncommitted Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridoe lH&W) 1 % ( ( Page 49 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 106 T1N-R13W 2.5700 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 10 of Seaside Terrace, platted in Plat #H82-101 and the minerals underlying Seaside Court Kenneth W. Battley 2/3 x 50% (note- Uncommitted 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% 107 T1N-R13W 2.5400 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 11 of Seaside Terrace, platted in Plat #H82-101 James E. Troutman & Susan E. Uncommitted Troutman (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae lH&W) 1% Page 50 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 108 T 1 N - R 13W 2.5100 1/1/05 Donald L. Caulkins & Denise D. Marathon 60% Section 33: A part of 2/1106 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. Bolstridae (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. Bolstridae lH&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 EXHIBIT "An 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 110 T1N-R13W 1.8700 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 14 of Seaside Terrace, platted in Plat #H82-101 Donald L. Caulkins & Michelle L. Uncommitted Caulkins (H&W) 50% Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae (H&W) 1% 111 T1N-R13W 5.3000 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 Charles A. & Ann C. Musarra Trust 4 and SE/4SE/4 lying dated 4/25/02 50% x 12.5% west of the Sterling Highway more particularly described as Lots 15 & 16 of Seaside Terrace, platted in Plat #H82- 101 Gaylord O. Smith & Luella Smith (H&W) Uncommitted 1% Basil S. Bolstridge & Elizabeth W. Bolstridae (H&W) 1 % Page 52 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 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. Bolstridae lH&W) 1% 112A T1N-R13W 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. Bolstridae lH&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 Serial Number & Basic Royalty & Ownership Percentage Overriding Royalty Working Interest Notes Acres Expiration Date of & Percentage & Percentage Lease PATENTED FEE LANDS 113 T1N-R13W 2.4800 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 20 of Seaside Terrace, platted in Plat #H82-101 C. Edward Jenkins 50% Uncommitted Gaylord O. Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae IH&W) 1 % 114 T 1N - R 13W 3.8600 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 21 of Seaside Terrace, platted in Plat #H82-101 Kenai Peninsula Borough 50% Uncommitted Gaylord 0, Smith & Luella Smith (H&W) 1% Basil S. Bolstridge & Elizabeth W. Bolstridae lH&W) 1% 115 T1N-R13W 40.0000 1/9/2008 Mary R. Hawkins 75% x 12.5% Marathon 60% Section 34: NE/4NW/4 Charles F. Hawkins 5% x 12.5% Union 40% Richard B. Hawkins 5% x 12.5% Marguerite Hawkins 5% Uncommitted James Hawkins 5% Ian Hawkins deceased 5% Page 54 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 116 T1S-R13W 40.0400 7/13/2003 Leon A. Windeler 100% x 12.5% Marathon 60% Section 4: Lot 4 Union 40% 117 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 Hiahwav 118 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 lin PI~t #H.79.fi 119 T 1 S - R 13W 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-79-5 120 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 lin Plat #H-79-5 ( ( Page 55 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 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 I 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 PIHt #H-79-5 124 T 1 S - R 13W 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 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California EXHIBIT IIAII 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 125 T1S-R13W 14.7288 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 Lots 8,9, 10 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 1 S - R 13W 1.1700 John Inman & Dee Ann Inman (H&W) Uncommitted Section 5: A part of 100% Government Lot 2 more particularly described as Lot 12 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 127 T1S-R13W 2.0700 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 13 and 14 of Sunset Bluffs Subdivision as platted in Plat #H-79-5 ( Page 57 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 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 I in Plat #H-79-5 129 T 1 S - R 13W 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 T 1S - R 13W Section 5: 8.4000 7/13/2003 Leon A. Windeler 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 T 1 S - R 13W 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 flAil 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 i132A T1S-R13W 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 T1S-R13W 2.0000 7/13/2003 Ronald Ord Wìndeler 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 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 136 T1S-R13W 104.6300 3/19/2008 Clarence Eugene Herman 100% x Marathon 60% Section 5: A part of the 12,5% Union 40% 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 8, respectively, of Herman Tracts Subdivision as platted in Plat #H-95-36 including the minerals under the Sterling Highway and Bannard Circle, Fellin Lane and Herman Drive in so far as they lie within SW/4NE/4 & N/2SE/4 136A T1S-R13W 2.8100 3/19/2008 James C. & Kay E. Forrest 100% x Marathon 60% Section 5: Lots 11 & 12 12.5% Union 40% of Bud's Acres Subdivision as platted in plat #H-85-69 136B T 1S - R 13W 1.5700 3/19/2008 Mark S. & LeAnn Herman (H&W) Marathon 60% Section 5: Lot10 of 100% x 12.5% Union 40% Bud's Acres Subdivision as platted in plat #H-85-69 136C T 1S - R 13W 3.4900 3/19/2008 Ed J. & Jean F. Adamson (H&W) 100% Marathon 60% Section 5: Lots 13 & 14 x 12.5% Union 40% of Bud's Acres Subdivision as platted in plat #H-85-69 Page 60 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 137 T1S-R13W 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 1 S - 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 T1S-R13W 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 Wavne 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 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 149 T1S-R13W 20.6200 Laura Lee Tieman Life Estate (W. Lee Uncommitted Section 7: That part of McKinley, remainderman) 100% the NE/4SW/4 more particularly described as Lot 2 of Tieman Subdivision as platted in Plat :ltH-8fi-129 150 T 1 S - R 13W 10.5400 Boyd Daniel Leman 100% Marathon 60% Section 7: That part of Union 40% 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 151 T1S-R13W 31.7100 Kenai Peninsula Borough 100% Uncommitted 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 I PI::d il:1-I_QR_1 ~ ( Page 63 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 152 T1S-R13W 1 ,2900 Aurora Communications International, Uncommitted Section 7: That part of Inc. 100% 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 T1S-R13W 7.0000 Steve Bates and Rebecca Bates Uncommitted Section 7: That part of (H&W, TBE) the NW/4SE/4 lying south of the Sterling Hiahwav 154 T1S-R13W 13.0000 lIiamna International, Ltd. 100% Uncommitted Section 7: That part of (Note: Tom E. & Janet L. McCormick the NE/4SE/4 lying may also own some interest) north of the Sterling Hiqhway 155 T1S-R13W 27.0000 Shirley J. Provence 100% Uncommitted Section 7: That part of the NE/4SE/4 lying south of the Sterling Hiahwav 156 T1S-R13W 77.4600 Laura Lee Tieman Life Estate (W, Lee Uncommitted Section 7: That part of McKinley, remainderman) 100% 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- ,M,\ Page 64 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 156A T 1 S - R 13W 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 T1S-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 I?~ 160 T1S-R13W 40.0000 7/31/2004 Elizabeth B. Quick 100% x 12.5% Marathon 60% Section 8: NW/4SW/4 Union 40% 161 T 1S - 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 ~hHnes E Gates 1/Fi 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 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 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 ...... 1;1IIHS F ~;::¡tA~ 1/f\ 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 T 1S - R 14W 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- B6-17\ ;::¡/rl/;::¡ GLO LotJ 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:::It 1J.7FV~? lDeirlfA F It John 0 IVlr ~ unn.. 7!ï0/n It 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 iJ.7fV),? 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 A PI;::¡t #7R-~? 8/8/2005 Gailan B. & Carol Lane-Johnson 75% Marathon 60% I Inion AJ)o/... 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 i.i7R_~? 6/14/2005 Robert Flygenring & Cheryl King 75% Marathon 60% Illninn .dOOfn 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 i.i7R_~? Rnhhv.1 R. ~olon<:1 no nonrtinn 7F\O/n I 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 i.i7R. ':t? 4/24/2005 Michael Roy Smith 75% Marathon 60% Illninn L10O/n 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% '73 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 73A 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 ( ( Page 67 of 71 Ninilchik Unit Exhibit Reintegrated Falls Creek updated 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of Cà/ifornia EXHIBIT "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 174 T1S-R14W 47.3490 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Tracts B&C Union 40% of Catledge Subdivision, plat #74- 2075 Darwin Waldsmith 75% Uncommitted 175 T1S-R14W 1 ,9900 2/22/2004 Carolee Pickett 100% Marathon 60% Section 13: Tract D of Union 40% Catledge Subdivision, plat #74-2075 176 T1S-R14W 23.2000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: That part of 7/1/11 John L. Stengl 25% Union 40% GLO Lot 2, SE/4NW4 Gregory A. & Darlene M. Rozak 25% described as the Unsubdivided remainder of Red Bluff Terrace, except Lots 9, 18. 19.22.23 & 24 of Judith Ballentine 25% Uncommitted 176A T1S-R14W 1.0000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lot 9 of 7/1/11 David M. & Jeanine B. Shea 50% Union 40% Red Bluff Terrace Addition No, 2 (plat # H 2004-42) Judith Ballentine 25% Uncommitted 176B T1S-R14W 3,0900 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lots 22, 23 7/1/11 John L. Stengl 25% Union 40% & 24 of Red Bluff Theodore W. Rozak Living Trust dated Terrace Addition NO.2 October 15, 1997 25% (plat # H-2004-42) Judith Ballentine 25% Uncommitted 176C T1S-R14W 2.0000 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lots 18 & 7/1/11 John L. Stengl 25% Union 40% 19 of Red Bluff Terrace Larry M. Rozak 25% Addition No, 2 (plat # H 2004-42) Judith Ballentine 25% Uncommitted Page 68 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 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 I 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 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 182 T1S-R14W 9,2500 2/22/2004 Carolee Pickett 25% Marathon 60% Section 13: Lots 7/1/11 John L. Stengl 25% Union 40% 1 A,5,7 & 8, Block 3, Gregory A. & Darlene M, Rozak 25% 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 Judith A. Ballentine 25% Uncommitted 183 T1S-R14W 0.9150 William Kenneth DeFrang & Irene Uncommitted Section 13: A tract in Marie DeFrang (H&W, TBE) 100% NE/4SW/4 lying east (possibly John & Ethel Pherson own an of Sterling Highway, interest) 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 13-1S- 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 100'; TH. north 89 deg. 20 min. 15 sec. west A ') 1_,:\' to. Pf"'\Q Page 70 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" 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 184 T1S-R14W 7.9970 John Pherson and Ethel Pherson Uncommitted Section 13: That part of (H&W) 100% the SE/4NW/4 & NE/4SW/4 lying 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 184A T1S-R14W 5.5530 Tim Moerlein Uncommitted Section 13: Tract "A" of Pherson Acres Subdivision, plat #H- 2001-19 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 of200.4 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 feet to 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 teet to the N0l1hwest 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 of Cook 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 2-5-05.xls Marathon = Marathon Oil Company Union = Union Oil Company of California -, ~ '~ FRANK H. MURKOWSKI, GOVERNOR ALASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Ken Walsh Senior Production Engineer Marathon Oil Company PO Box1949 Kenai, AK 99611-1949 20Lt-~~3 Re: Ninilchik Unit, Beluga-Tyonek Gas Pool, Susan Dionne #4 Sundry Number: 306-159 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 J' enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4: 30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this~ day of May, 2006 Encl. /¥fr?\ ~ {tJ ~ ff~ /I.J/O" Alaska Business Unit Marathon Oil Company P.O. Box 1949 Kenai, AK 99611-1949 Telephone 907/283-1311 Fax 907/283-6175 May 2,2006 Winton Aubert AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 MAY 0 3 2006 Aleske on & Gas Cons. Commission Anchorage Dear Mr. Aubert: Attached and submitted for your approval is the Form 10-403 to add new Tyonek perforations in the Susan Dionne #4 wellbore. A procedure and a wellbore diagram are also included. This well is currently a Tyonek gas producer. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, l~b.uJ~ Ken D. Walsh Senior Production Engineer Enclosures STATE OF ALASKA AU",-,Å OIL AND GAS CONSERVATION COMI\~ION APPLICATION FOR SUNDRY APPROVALS 20 MC 25.280 Operational shutdown Plug Perforations D Perforate New Pool D 4. Current Well Class: Abandon Alter casing D Change approved program D 2. Operator Name: 1. Type of Request: MARATHON OIL COMPANY 3. Address: P. O. Box 1949, Kenai, AK 99611-1949 7. KB Elevation (ft): 156' 8. Property Designation: ADL-384372 11. Total Depth MD (ft): 11953' MD Total Depth TVD (ft): 8367' TVD Casing Structural Conductor Surface Intermediate Production Liner Length 122' 1851' 6098' 5873' 'Â7' ~EIVED MAy~3 (žm;6 Suspend Repair well D Pull Tubing D . sian Development Stratigraphic o / Exploratory D D Service D 6. API Number: 50-133-20547-00 / 9. Well Name and Number: Ninilchik Unit, Susan Dionne #4 10. Field/Pools(s): Ninilchik/Beluga- Tyonek PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): 11,820' 8234' // Plugs (measured): Junk (measured): Size TVD Collapse N/A 1500 psi 3090 psi 5410 psi Burst N/A 3060 psi 5750 psi 7240 psi 20" 9-5/8" 122' 1851' 6098' 122' 1541' 3397' 7" 4-1/2" 8430 psi 7500 psi Tubing MD (ft): 5873' 11927' 8341' Tubing Grade: Perforation Depth MD (ft):/ Perforation Depth TVD (ft): 10559-11171' Gross 6974-7585' Gross Packers and SSSV Type: ZXP Liner Packer Tubing Size: 4-1/2" L-80 5873' / Packers and SSSV MD (ft): 12. Attachments: Description Summary of Proposal 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 Ken D. Walsh Printed Name Ken D. Walsh Title Senior Production Engineer Signature 13. Well Class after proposed work: Exploratory D Development 0 Service D 15. Well Status after proposed work: Oil D Gas 0 / Plugged D Abandoned D WAG D GINJ D WINJ D WDSPL D Date: Phone 907-394-3060 Date COMMISSION USE ONLY 5/2/2006 Conditions of approval: Notify Commission so that a representative may witness Sundry Number: - 15C) Plug Integrity D BOP Test D Other: Subsequent Form Required: Approved by: Form 10-403 Revised 07/2005 Mechanical Integrity Test D Location Clearance D RBDMS BFl MAYO 4 2006 APPROVED BY THE COMMISSION Date: ~ ., of; ORIGINAL Submit in Duplicate ",,-", ~ MARATHON OIL COMPANY ALASKA REGION Ninilchik Field Susan Dionne #4 Tyonek Recompletion Procedure WBS# 1. MIRU Expro with wireline unit and boom truck. Hold Safety and environmental awareness meeting. PU tool string consisting of weight bars, spang jars, and 3.80" 00 gauge ring into lubricator. RIH w/3.80" gauge ring and junk basket to tag and record PBTD. 2. PERFORATE NEW TYONEK INTERVALS Measured Depth TVD SBHP / (0.469 psi/ft) Surface Wellhead Pressure 50% DD60% DD 0.96 N2 0.57 2as 10,560-10,570, /10 ft 10,458-10,472, 14 ft 10,420710,435, 15 ft 10,406-10,414, 8 ft 6975-6985 ' 6873-6887' 6835-6850 ' 6821-6829' 3276 3230 3213 3203 1299 1284 1279 1275 1116 1103 1098 1095 a) RU Expro wireline service with full lubricator (pump in sub and flow tubes) and pressure control equipment. Hold safety and environmental awareness meeting. Trap 1116 psi wellhead gas pressure 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" 00. Correlate depth to Expro CBUGR/CCl log. Perforate 10,560-10,570' MD. b) Flow test open perf intervals to sales to check for excessive produced water flow. After a sufficient observation period confirms no excessive water flow, perforate 10,458-10,472' KB observing perforating drawdown limits. c) Flow test open perf intervals to sales to check for excessive produced water flow. After a sufficient observation period confirms no excessive water flow, perforate 10,420-10,435' and 10,406-10,414' KB observing perforating drawdown limits. d) RDMO Expro wireline. Produce well to sales. 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) 907-748-3589 (c) Clyde Scott: 713-296-2336 (w) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 TD: 11,953' MD I 8367' TVD Formation Tops: Formation Beluga Tyonek TD Depth (MD) Depth (TVD) 912' 884' 6120' 3406' 11,953' 8367' Ninilc¡'ik Unit 104' FSL & 1331' FEL Sec.6-T1S-R13W Conductor 20" K-55 133 ppt PE I2Q. Bottom MD 0' 122' TVD 0' 122' Surface CasinQ 9-518" 40 ppt I2Q. MD 0' TVD 0' L-80 ~ 1851' 1541' BTC 12-114" hole with 403 sks 12 ppg cement Intermediate CasinQ 7" 26 ppf L-80 BTC I2Q. Bottom MD O' 6098' TVD O' 3397' 8-112" hole with 263 sks 12.5 ppg Lead + 185 sks 15.8 ppg Tail Tagged PSTD at 11,820' with Expro CBUGR. Tagged at 11820' MD with 2" nozzle on 1-3/4" Coil Tubing Liner 4-1/2" 12.6 ppf L-80 I2Q. Bottom MD 5873' 11,927' TVD 3298' 8341' 6-1/8" hole with +/- 498 sks 13.5 ppg Hydril 533 . . Alaska Asset Team Northern Business Unit Marathon Oil Company P.O. Box 3128 Houston, TX 77253 Telephone 713-296-2384 Fax 713-499-8504 May 9, 2005 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Certified Mail RE: Marathon Susan Dionne #4 CONFIDENTIAL )~ -I)J- 4C1 rf('l-M-(:I~ ;Zól.{- ~JJ WI»)\\ Dear Mr. Oakland: The following confidential well data are enclosed for the above referenced well. SD#4 AOGCC Drilling Pennit..................................... .................... ....................................... digital As-Built Plat.................................................................................................................. digital Daily Drilling Reports.................................................................................................... digital Directional Survey......................................................................................................... digital EPOCH ReportlData...................................................................................................... digital One CD containing digital well logs and above data (directory list attached)................ digital ,:jlf ð - II q~ .3 Please indicate your receipt of this data by signing below and returning one copy to me at the letterhead address. Thank you, 1(~ Kaynell Zeman Geological Technician Received by: Date: /LJdM )I ~ ~l'-- Enclosure ) tJcf- Æ)) ~l t.- . Marathon Oil Company Susan Dionne #4 CD Contents . R.~iI.t}?~~li~R~~P°rt .. 'li SD4 Daily Drilling Report - Part l.tif iii SD4 Daily Drilling Report - Part 2,tif Directional Survey [J SD4 final surveys asci, txt @i} SD4 final surveys asci, prn l!:) susan_dionne _4 _tvd_dir _sur ,Ias As-Built Plat ·NðIhe ~iSusan Dionne #4 As-Built Plat II +04.pdf ~susan Dionne #'" AOGCC Approved Permit.pdf Precision Run I [;)~~_"'_mar,las ? )-G - ~ Ie:. b - Ii!] FINAL_Data_Marathon_Sd_ "'_Rl_complete,dpk Ii!] FINAL_Data_Marathon_Sd_ "'_Rl..,plotted,dpk c.,-«v I Sf) P(J,.~J Jj~v.5 / PI, 1'4 J,^I.-'f Precision Run 2 l!) SD4_R2_MAINDEPTH,las ;<f '1 ~ - (/1 3 ~ Ii!] FINAL_Data_Marathon_Sd_ 4_R2_complete,dpk Ii!] FINAL_Data_Mar athon_Sd_ 4 _R2..,plotted ,dpk G(2...)S()) P~.,..c¡ DÞt<cI¡ 1)'1) l""J,M...··r . Marathon Oil Company Susan Dionne #4 CD Contents . ... ...-~ EPOCH Mud LogIMorning Reports directory: ¡f}2OO11210.htm :l)2OO11211.htm :l)2OO11212.htm :l)2OO11213,htm oIJ2OO1121'1.htm .f 2OO11215.htm :l)2OO11216.htm :l)2OO11217.htm ¡f}2OO11218.htm :l)2OO11219.htm .f 2OO11220.htm iì2OO11221.htm .l]2OO11=.htm :l)2OO11223,htm iì2OO1122'1.htm :l)2OO11225.htm , .l]2OO11226.htm :l)2OO11227.htm :l)2OO11228.htm iì2OO11229.htm :l)2OO'I1230.htm -IJ2OO'I1231.htm -IJ20050101.htm :l)20050I02.htm ;(J20050100,htm -IJ20050 (J4.htm -IJ200501œ.htm ;(J20050 (J6.htm -IJ20050107.htm .l]20050108.htm ;f]20050I09.htm :l)2005011O.htm :l)20050111.htm :l)20050112.htm I t)20050113.htm EPOCH Mud Log! ASCII Data directory: L!.)SD'I.1as EPOCH Mud Log/DML Data directory: ~SD'I.dbf ~sdoI.hdr ~SD4.mdx ~SD'I....scL.D6f ~ SD'I_sa.MDX ~SDuvd.dbf ~SD'I_tvd.mdx ~sdoIr.dbf ~sd'Ir.mdx EPOCH Mud LoglFinal Well Report directory: i!IDWeI Report SD'I.doc "!3wel Report SD'I,pdt EPOCH Mud LoglPDF Files directory: ~'SD'I Drilling Dynemics.pdf .¡;;; SD'I Formotion MD.pdt "!i'SD'I Fa'metion TVD.pdf EPOCH Mud Log/Remarks File directory: ~ROITIðI'ks.dat . . 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 May 27,2005 RECEIVED MAY 04 2005 Alaska Oíi & Ga~ Cons. Commission Anchorage Winton Aubert AOGCC 333 West 7th Ave Suite 100 Anchorage, AK 99501 Dear Mr. Aubert: Attached and submitted for your records is the Form 10-407 for the completion work performed in the Susan Dionne #4. This well is an active Tyonek gas producer. Also attached for your records are the operational history, final directional survey, and well schematic. If you would like any other information, please contact me at 283-1311 or kdwalsh@marathonoil.com. Sincerely, I(~t, \,~ Ken D. Walsh Senior Production Engineer Enclosures 'Ú·-,_ · STATE OF ALASKA RECElVED ALASKAW AND GAS CONSERVATION COMMISe '. .. . WELL COMPLETION OR RECOMPLETION REPORT ANDt"'ê·4 2005 1a. Well Status: OilLJ GaslJ Plugged U Abandoned [J Suspended 0 WAGU 1b, Well CIA1allka Oil & Gas GOrHL Sr 20AAC 25.105 20AAC 25.110 Development 0 lftltatory GINJD WINJD WDSPL D No. of Completions Other Service D Stratlgf1p PJ~~t D 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: MARATHON OIL COMPANY Aband.: 03/18/05 204-233 3, Address: 6. Date Spudded: 13, API Number: P. O. Box 1949, Kenai, AK 99611-1949 December 10, 2004 50-133-20547-00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1331' FEL & 104' FSL Sec. 6-T1S- R13W, SM January 3, 2005 Ninilchik Unit, Susan Dionne #4 Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): 1197' FEL & 270' FNL Sec. 12-T1S-R14W, SM 156' Ninilchik/Beluga- Tyonek Total Depth: 9. Plug Back Depth(MD+ TVD): 3048' FEL & 446' FNL Sec. 12-T1S-R14W, SM 11,820' 8234' 4b. Location of Well (State Base Plane Coordinates): 10, Total Depth (MD + TVD): 16. Property Designation: Surface: x- 213,102.31 y- 2,236,587.74 Zone- 4 11953' MD 8367' TVD ADL-384372 TPI: x- 208453.00 y- 2236213.50 Zone- 4 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- 206442.55 y- 2236038,25 Zone- 4 18, Directional Survey: Yes o No U 19. Water Depth, if Offshore: 20. Thickness of Permafrost: feet MSL 21. Logs Run: Reeves Quad Combo: GRlCal/Den/Neutron/SoniclRes 22, CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED N/A 20" 133# K-55 0' 122' 0' 122' Driven NIA 9-5/8" 40# L-80 0' 1851' 0' 1541' 12-1/4" in place, 403 sx NIA 7" 26# L-80 0' 6098' 0' 3397' 8-1/2" in place, 448 sks NIA NIA 4-1/2" 12.75# L-80 5873' 11927' 3298' 8341' 6-1/8" in place, 498 sx NIA 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) 10,559-10,602, 43 ft 6974·7017' Owen 3·3/8" 6 SPF 3/19&22/05 4-1/2" 5873' 5873' 10,612-10,636, 24 ft 7027·7,051' Owen 3·3/8" 6 SPF 3/19/05 10,769-10,782, 13 ft 7184-7197' Owen 3-3/8" 6 SPF 3/19/05 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC, 10,855-10,869, 14 ft 7270-7284' Owen 3-3/8" 6 SPF 3/19/05 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 10,876-10,890, 14 ft 7291-7305' Owen 3-3/8" 6 SPF 3/17/05 11,116-11,135, 19 ft 7530-7549' Owen 3-3/8" 6 SPF 3/17/05 11,147-11,171, 24 ft 7561-7585' Owen 3-3/8" 6 SPF 3/17/05 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): 3/18/2005 Flowinç¡ Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: IGaS-Oil Ratio: 3/27/2005 24 Test Period -.0 8161 3.4 46/64" N/A Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. N/A 1959 24-Hour Rate ... 0 8161 3.4 NIA 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". Lithology - interbedded gas charged sandstone, shale and coal. Core chips submitted. f';"~'_';;"".""---~." ... RBDMS 8FL MAYO 42005 , ¡~. 1" c:. ¡ . ~. Gr: j ~1 mìssi(Jr¡ Form 10-407 Revised 12/2003 CONTINUED ON REVERSE NAME GEOLOGIC MARKER M TVD 29. Include and briefly su detailed supporting dat' "None". e test results. List intervals tested, and attach necessary. If no tests were conducted, state 28. Beluga Tyonek 912 6120 884 11147 'Perf: 11147-11171 (3/17/2005)' - 'N2 cush 1050#, no pressure increase.' 3406 11116 'Perf (add): 11116-11135(3/17/2005)' - 'N2 cush 1050# 5ITP, increase to 1070# in 10 min.,' - 'inc. to 1090# in 30 min., inc. to 1130 in 45 min.,' - 'inc. to 1160# in 60 min.' 10876 'Perf (add): 10876-10890 (3/17/2005)' - 'Bled down to 1050# 5ITP, increase to 1070 in 10 min.,' - 'inc. to 1070# in 30 min., inc. to 1140# in 30 min.,' - 'inc. to 1200# in 45 min.,' - 'Flow 1600 me! @ 762# FTP' 10855 'Perf (add): 10855-10869 (3/18/2005)' - 'Bled to 1050# SITP, increase to 1193# in 10 min.,' - 'Flow 1625 me! @ 1050# FTP' 10769 'Perf (add): 10769-10782 (3/18/2005)' - 'Flowing 1700 me! @ 1060# FTP' - 'Inc. to 1930 me! @ 1060# FTP' 10612 'Perf (add): 10612-10632 (3/18/2005)' - 'Flowing 1875 me! @ 1056# FTP' - 'Inc.to 2713 me! @ 1056# FTP' 10582 'Perf (add): 10582-10602 (3/18/2005)' - 'Flowing 2713 me! @ 1056# FTP' - 'Inc. to 5700 me!@ 2130# FTP' 10559 'Flowing 5500 me!@ 2100# FTP' - '51 buiit to 2470#' - 'Flowing 7700 me! @ 1770#' 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Ken D, Walsh Printed Name: Ken D. Walsh 'l~Jv'-b' uJ(~ Title: Senior Production Engineer Signature: Phone: 907-283-1311 Date: 4/26/2005 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 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 prod Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one inteNal (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional in 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 , 4 . . Marathon Oil Company Operations Summary Report 6.00 TRIP _ DP _ PR1CSG PJSM, MIU 61/8 clean out BHA, RIH same, follow with 4112 DP to btm at 11953 ft. Precaution wash 60 ft, 10 ft fill No gain I loss, correct displacement. 5.50 CIRC_ MUD_ PR1CSG Circ I cond fluids, cut wt to 10.1 ppg, well bore clean, cuttings normal quantity I quality. 8.00 TRIP _ DP _ PR1CSG Note 300 psi press drop at end of eire, PJSM, POH, inspect for washout. Discover washout top of std 149. Resume POH, lay dn 80 jts 4 1/2 DP. Break bit, clear floor. No swab I gain I loss. PJSM, prepare floor, RIU for 4 1/2 liner run. No ace I dn time. Cont RIU for 4 1/2 liner run. PJSM, commence run 4 1/2 liner as follows: MIU shoe track (guide shoe, 2 jts 4 1/2, L80, 12.6, Hyd 533) Thread lock all conn's, follow with 4 1/2, Hyd 533 to 7163 ft. Discover damaged tube section (flattened) at tong area, repair Weatherford Hyd tongs (bent jaw pin), POH 4 1/2 csg, layout 11 jts damaged csg. Mobilize Pollard slickline, wait on arrival PJSM, place Pollard equip rig floor, RIU same, RIH 3.839 gauge ring, no go at 90 ft, POH slickline. POH, layout 7 jts 4 1/2 csg, (3 damaged jts) Wait on arrival 3.75 gauge ring. RIH slick line 13.75 gauge ring, drift to Idg collar. Function test two sets Weatherford hyd tongs, Identical results (torque 5500, no deflection, 6500 deflect 1/8", 8500 deflect 1/4 "), permanent distortion. Attempt run 3.800 gauge ring, no go 120 ft PJSM, C/O Weatherford hyd tongs, prepare floor, POH laying dn 4 1/2 liner Flow check, layout Weatherford equip, clear floor, prepare PIU 4" DP. MIU 6 1/8 bit clean out BHA, RIH same Flow check, PfU 80 jts 4" DP, cont RIH, precaution wash 60 ft to btm. 5 ft fill. Correct displacement, no gain floss Circ I cond fluids for liner run. Circ I cond fluids for liner run Note decrease SPP, 300 psi 130 min, test surface equip, POH for washout. Discover washout std #157 (10445 ft) Layout washed jt DP, flow check, RIH 11953 ft, no fill. Resume circ I cond fluids, pump timed sweep, (50 bbl excess) No gain I loss. Shaker clean, no abnormal cuttings at any time. PJSM, flow check, POH laying dn 80 jts 4" DP. Pump wt pill, flow check. Resume POH 4" DP for liner run. No drag I swab I gain I loss PJSM, place Weatherford equip rig floor, RIU same Run previous 4 1/2 shoe track from mast. Guide shoe, 2 jts 4 1/2, Baker Ldg collar. Check floats. Follow shoe track with 4 1/2, L80, Hydril 533, Reduced torque 5500 ft Ibs, Drift with slick line (3.800" gauge ring) at 1000 ft intervals, 1100 ft at 0600, initial drift successful. No ace I dn time Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Date Sub From-To Hours Code Code Phase 1/7/2005 08:30 - 14:30 14:30 - 20:00 20:00 - 04:00 04:00 - 06:00 2,00 RURD - CSG_ PR1CSG 1/8/2005 06:00 - 09:00 3.00 RUN - CSG - PR1CSG 09:00 - 20:00 11.00 RUN - CSG - PR1CSG 20:00 - 21 :00 1.00 REPAIR EQIP PR1CSG 21:00 - 22:00 1.00 PULD TBG - PR1CSG 22:00 - 01 :00 3.00 WAlTON EQIP PR1CSG 01 :00 - 01 :30 0.50 WORK SLlK PR1CSG 01 :30 - 03:30 2.00 PULD TBG_ PR1CSG 03:30 - 06:00 2.50 WAlTON EQIP PR1CSG 1/9/2005 06:00 - 07:30 1.50 WORK SLlK PR1CSG 07:30 - 09:00 1.50 TEST_ EQIP PR1CSG 09:00 - 09:30 0.50 WORK SLlK PR1CSG 09:30 - 21 :00 11.50 LAYDW CSG_ PR1CSG 21 :00 - 22:00 1.00 RURD - CSG_ PR1CSG 22:00 - 22:30 0,50 PULD - BHA_ PR1CSG 22:30 - 05:30 7.00 PULD - DP - PR1CSG 05:30 - 06:00 0.50 CIRC_ MUD - PR1CSG 1/10/2005 06:00 - 07:30 1.50 CIRC_ MUD - PR1CSG 07:30 - 09:00 1.50 TRIP - DP - PR1CSG 09:00 - 10:00 1.00 TRIP - DP - PR1CSG 10:00 - 15:30 5.50 CIRC_ MUD - PR1CSG 15:30 - 19:00 3.50 PULD - DP - PR1CSG 19:00 - 19:30 0.50 CIRC_ MUD - PR1CSG 19:30 - 01 :00 5.50 TRIP - DP - PR1CSG 01 :00 - 02:30 1.50 RURD_ CSG_ PR1CSG 02:30 - 03:30 1.00 RUN - CSG_ PR1CSG 03:30 - 06:00 2.50 RUN - CSG_ PR1CSG 1 Start: 12/31/2004 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Ðescription of Printed: 4/26/2005 1 :12:56 PM ... . . Marathon Oil Company Operations Summary..RepPr;t! Cont, RIH 4 1/2 liner, drift (3.800 gauge ring) at 2000 ft intervals with slickline. Rig dn Pollard slickline equip, release unit. PJSM, MIU liner hgr I running tool, resume RIH 4 1/2 liner on 4" DP. Work stuck pipe at 11265 ft, work right I left rotation dn hole. Spot Lube pill in annulus, pipe free. Resume RIH 4 1/2 liner to 11933 ft. Hgr at 5903 ft. Rotate various intervals maintaining downward movement. Circ I cond fluids, (6% Lube in system), liner free, normal drag, Up 150, Dn90, Rot 112 No gain I loss No ace I dn time 5.00 CIRC_ MUD_ PR1CSG Cont. eire, including two carbide rounds, recip I rot liner. 1.00 RURD_ CMT_ PR1CSG PJSM RlU cement head. 2.00 PUMP _ CMT_ PR1CSG PJSM, Pump 2 bbls water ahead, Test lines to 4500psi. Mix and pump 40bbls 10ppg MCS-4D spacer. Mix and pump 498SXS Class "G" cement w/1 0% SA-90, .5% CaCI2, 2.5% SA-56, .4% CD-32, .1 % ASA-301, 1 GPHS FP-6L, .5% Sodium Metasilicate to yield 161 bbls 13.5ppg slurry. Drop plug. Displace w/144bbls Gelled 6% KCL brine. CIP@ 13:30hrs. Reciprocate and rotate until last 11 bbls of displacement fluid, last torque 7700ft-lb, 185K up, 50K down, 100K rotating. Set Saker 4 1/2"X7" Hydraulic liner hanger and release from hanger. P/U and circ. Circulated out spacer and 3bbls contaminated cement. Set Saker 4 1/2"X7"ZXP Mechanical set liner top packer. RID cement head. Slow down lines. POOH. LID HWDP and drill collars. POOH w/4" DP. LID running tool. P/U polish mill assy. Slip and cut drilling line. Service rig, RIH wlpolish mill assy. Tag TOL@5868'. Dress TOL@5868'. Pump 50bbls pacer ahead. Displace well to 6%KCL brine w/inhibitor. Test CSG and liner to 1500psi/30min. Cont. to rack, strap and drift 41/2" 12.6PPF L-80 1ST-Mod TSG while empty and clean pits. PJSM. Cont. to rack ,drift and strap 4 1/2" DP while empty and clean pits(total 150jnts). POOH and LID 4" DP. LID polish mill assy. RIH w/4" DP. POOH and LID 4" DP. Pull wear bushing, M/U landing joint and TSG hanger. Test run hanger. Clean and organize rig floor. RlU Weatherford. PJSM. MIU Saker seal assy. P/U and RIH w/4 1/2" TSG(34jnts run@06:00hrs). Cont. run 4 1/2" 12.6ppf L-80 1ST mod TSG to 3480'. MIU Saker 5.78" chem inj. mandrel. Test control line to 2000psi. Cont. RIH w/4 1/2" TSG holding 500psi on control line, Land out TGS @ 5873'(top of liner) (up 60K, down 40K). Test seals to 500psi. Space out TSG and land Vetco 10 13/16" X 41/2" Hanger, Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Date From...To Hours Code Sub Phase Code 1/11/2005 06:00 - 16:30 10.50 RUN - CSG_ PR1CSG 16:30 - 17:00 0.50 RURD - SUK PR1CSG 17:00 - 01 :30 8.50 RUN - CSG_ PR1CSG 01 :30 - 04:30 3.00 WORK PIPE PR1CSG 04:30 - 05:30 1.00 RUN - CSG_ PR1CSG 05:30 - 06:00 0.50 CIRC_ MUD - PR1CSG 1/12/2005 06:00 - 11 :00 11 :00 - 12:00 12:00 - 14:00 1/13/2005 14:00 - 15:00 1.00 SETREL LNR_ PR1CSG 15:00 - 15:30 0.50 SETREL PKR_ PR1CSG 15:30 - 16:30 1.00 RURD - OTHR PR1CSG 16:30 - 18:00 1.50 TRIP_ TOOL PR1CSG 18:00 - 21 :30 3.50 TRIP _ TOOL PR1CSG 21 :30 - 22:30 1.00 TRIP - TOOL PR1CSG 22:30 - 23:30 1.00 SLPCUT DUN PR1CSG 23:30 - 00:00 0,50 SERVIC RIG_ PR1CSG 00:00 - 02:30 2.50 TRIP - SHA_ PR1CSG 02:30 - 03:00 0.50 MILL_ PKR_ PR1CSG 03:00 - 05:30 2.50 CIRC_ CFLD PR1CSG 05:30 - 06:00 0.50 TEST_ CSG_ PR1CSG 06:00 - 12:00 6.00 DRIFT_ TSG - PR1TIE 12:00 - 13:00 1,00 DRIFT_ CSG_ PR1TIE 13:00 - 20:30 7.50 PULD_ DP - PR1TIE 20:30 - 21 :30 1.00 TRIP - DP - PR1TIE 21 :30 - 01 :00 3.50 PULD - DP - PR1TIE 01 :00 - 03:30 2.50 RUNPU WSSH PR1TIE 03:30 - 06:00 2.50 RUNPU PR1TIE 06:00 - 08:30 2.50 RUNPU PR1TIE 08:30 - 09:30 1,00 RUNPU PR1TIE 09:30 - 13:30 4.00 RUNPU PR1TIE 13:30 - 14:30 1.00 TEST_ PR1TIE 14:30 - 16:00 1.50 RUNPU PR1TIE 1/14/2005 Start: 12/31/2004 Rig Release: Rig Number: Spud Date: 12/912004 End: Group: Description of Opera~Qns Printed: 4/26/2005 1:12:56 PM ""w Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date 1/14/2005 1/15/2005 1/16/2005 1/17/2005 1/18/2005 . Marathon Oil Company Operatiol1$ Summélt'YRepórt SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Sub Code ;,Code Phasè 0.50 TEST_ TBG_ PR1TIE 1,00 RURD_ OTHR PR1TIE 1.00 RURD_ OTHR PR1TIE From - To Hours 16:00 - 16:30 16:30 - 17:30 17:30 - 18:30 18:30 - 22:00 22:00 - 23:00 23:00 - 01 :30 01 :30 - 06:00 06:00 - 12:00 12:00 - 00:00 00:00 - 06:00 06:00 - 12:00 12:00 - 00:00 00:00 - 06:00 06:00 - 12:00 12:00 - 00:00 00:00 - 06:00 06:00 - 12:00 3.50 NUND BOPE PR1TIE 1.00 REPAIR RIG_ PR1TIE 2,50 NUND BOPE PR1TIE 4,50 NUND TREE PR1TIE 6.00 RURD_ RIG_ RDMO 12.00 RURD_ RIG_ RDMO 6.00 RURD_ RIG_ RDMO 6.00 RURD_ RIG_ RDMO 12.00 RURD_ RIG_ RDMO 6.00 RDMO 6.00 RURD_ RIG_ 12.00 RURD_ RIG_ RDMO RDMO 6.00 RURD RIG_ RDMO 6,00 RURD_ RIG_ RDMO Start: 12/31/2004 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Description Test TBG seals to 500psi/10min. Test hanger seals to 5000psi/10min, RID Pollard. RID Weatherford. UD LJ. Set BPV. Flush pumps 1 and 2, Top drive, mud line, choke manifold, and blow down. NID choke and kill line. NID fill up and trip tank lines. UD mouse hole, bell nipple, and flowline, Steam clean BOP stack. Repair bridge crane. Blow down and freeze protect drawworks. Prep disc brake for repair. NID kill line check valve. NID BOP stack. NIU X-mas tree. Test tree void to 5000psi/10min. Bull BPV and install TWC. Test tree to 5000psi/10min. Pull TWC. Install BPV. Begin drawworks disc brake repair and modification, RID Koomey lines, mud line shock hoses, panic line, trip tank scaffolding, bridge crane beams and clean pits. Load pipe racks. P/U donage. cIa liners #3 mud pump F/4" to 5". PJSM. Continue work on drawworks disc brake modification. Clean pits, thaw water return line and choke line. RID choke hoses and mud manifold. UD subs, handling tools, sub rack, and rig tongs. Loat out Hanson tank and cuttings tank. Load trailers, C/O liners in#2 pump F/4" to 5". Fab jig Flmachinist to reface disc brake. RID spinners, snubing post and mise rig floor equipment. Complete cIa of liners in#2 mud pump. C/O liners in#1 pump F/4" to 5". RID pop off lines, dresser sleeves, u-tube and de-gasser, choke flow lines, top drive, TD torque tube and load on trailers. Hang blocks, cut drlg line and pull line off of drum, Freeze protect test pump. RID stairs from rig floor to conex, beaver slide and catwalk. RID geolograph line, Epoch recorders, Auto driller and trip tank gauge. RID Geronimo line, cylinder socks, derrick board windwalls and electric. Prep derrick, Change oil in#1 carrier motor. Change out valves and seats in #1,#2 and #3 mud pumps. Cont. modlrepair on drawworks disc brake rotor. PJSM, Resurface rotor for disc brake. Prep GO location for rig move. Change suction rubber and fix handle in Pill Pit. Load out Catwalk and #3 pump. Change oil in light plant. Weld suction pod and cap on #2 pump. Change 4" suction valve in pit#1. Clean up location. Continue modlrepair disc brake. Load out Epoch and trip tank. Rebuild pump parts. Clean location. RID panic line. Cont. modification on Drawworks disc brake. PJSM. Install caliper on disc brake. Blow down water and steam lines. Slip on Drlg line. Remove carrier tarps and roof frame. RID exhaust. Scope down derrick and layover, Crane down windwalls and landing. Pull wires, Crane down stairs, dog house, choke house, windwalls, flow line, and outriggers. RID air, water and steam lines. Fuel up support equipment. Drain and winterize mud man and dir drillers houses. Prep carrier and move off mud boat. Pull wires. Prep pits, generator house, boiler house and water tank to be moved. Release rig to Go#3 @ 12:00hrs 01/17/2005. Printed: 4/26/2005 1 :12:56 PM · Page 1 of6 Marathon Oil Company Operations Summary RepQrt 0.50 SAFETY MTG_ CMPFLW Held PJSM with Expro and MOC personnel to discuss potential hazards and operational plan, Filled out and reviewed work permit. 1.50 RURD_ ELEC CMPFLW Spotted and rigged up Expro wireline unit and crane truck to run gauge ring and cement bond log. MU 3.80" aD gauge ring, spang jars, and two weight bars to wireline and pull into lubricator. Take lubricator and pump-in tee to wellhead. RIH with 3.80" gauge ring and tagged at 5868' MD (top of ZXP packer at 5873' MD). Tried to pass several times without success. POOH with gauge ring. RIH with 3,60" gauge ring and tagged PBTD (uncorrected to GR) at 11825' MD (top of landing collar at 11830' MD), Tried to pass several times without success. POOH with gauge ring. Became temporarily stuck at 5880' MD while POOH. LD gauge ring and PU 1-11/16" OD CBUGRlCCL. RIH to about 4600' MD. Expro spent 1-1/2 hrs calibrating CBL and resolving new data acquisition software issues. RIH and tagged PBTD at 11,818' MD correlated to openhole logs. POOH logging CBUGRlCCL at 1800 fph, Recorded 200' repeat log off bottom. Troubleshot computer memory problem at around 7940' MD. Drop down to 8000' and began pulling another strip with depth tied into pass to 8000'. Logged up to 5700' MD. POOH and LD logging tools. LD lubricator. Secure well. Plan to make CBL pressure pass tomorrow. Held PJSM with Expro and MOC personnel to discuss potential hazards and operational plan. Filled out and reviewed work permit. PU Expro CBUGRlCCL into lubricator and pump-in tee, Take lubricator to wellhead. RIH with CBL and tagged PBTD at 11819' MD. Correlated depth to MaC Geology composite openhole log. Expro pumped methanol water to achieve 500 psi surface pressure for CBL pressure pass. Made short pass from bottom without significant change in log characteristics. RIH to bottom and pressured well to 1000 psi. POOH logging CBUGRlCCL at 1800 fph and with SITP of 1000 psi Recorded 200' repeat log off bottom. Logged up to 5700' MD, POOH with logging tools. Shut well in. RDMO Expro wireline. Continue with rigging up on well head, Spotting equipment, PU gas buster and finish making up chicksan to flow back tank, Held PJSM and discussed environmental issues with personnel. Secured a work permit. 1.00 RURD_ COIL CMPFLW PU coil to circulate coil to run pig through the coil. Pump fozen up. Move heater over and put heat in pump unit to thaw out the pump, Continue to displace coil with 50/50 Methanol. Coil displaced. 2.50 RURD_ COIL CMPFLW Displaced coil. PT shell to 250 Ibs low and 4500 psig high. No leaks. Closed blinds and pressured up low test at 270 psigl high to 4500 psig. Open blinds and closed tubing rams, pressure tested low to 250 psig high to 4500 psig. Good test. 1.50 RURD_ COIL CMPFLW Bled off pressure and opened up lubricator to connect BHA to coil. Lay down injector. Weavers delivered 30 bbls of Methanol to site. 2.50 RURD_ COIL CMPFLW MU the 1 3/4" coil with a coil connector, 36" straight bar, 2" bull noze Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Date Sub Code Code Phase From - To Hours 1/26/2005 08:00 - 08:30 08:30 - 10:00 10:00 - 10:30 0.50 RUNPU CMPFLW 10:30 - 11 :30 1.00 RUNPU CMPFLW 11 :30 - 13:00 1.50 RUNPU CMPFLW 13:00 - 14:00 1.00 RUNPU CMPFLW 14:00 - 14:30 0.50 RUNPU CMPFLW 14:30 - 18:00 3.50 RUNPU CMPFLW 18:00 - 20:00 2.00 RUNPU ELEC CMPFLW 20:00 - 21 :00 1.00 RUNPU ELEC CMPFLW 21 :00 - 22:00 1.00 RURD - ELEC CMPFLW 1/27/2005 09:00 - 09:30 0.50 SAFETY MTG - CMPFLW 09:30 - 10:00 0.50 RURD - ELEC CMPFLW 10:00 - 11 :30 1.50 RUNPU ELEC CMPFLW 11 :30 - 13:30 2.00 PUMP _ WTR_ CMPFLW 13:30 - 16:30 3.00 RUNPU ELEC CMPFLW 16:30 - 17:00 0.50 RUNPU ELEC CMPFLW 17:00 - 18:30 1.50 RURD - ELEC CMPFLW 2/1/2005 07:00 - 10:30 3.50 RURD - COIL CMPFLW 10:30 - 11 :30 11 :30 - 14:00 14:00 - 15:30 15:30 - 18:00 Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: DescriptionQf Operati()l'l~ Printed: 4/26/2005 1 :00:48 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date . . Marathon Oil·Company dp~..ations Summary Report 6 SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Sub Code Phase 21112005 15:30 - 18:00 From - To Hours of 2/3/2005 07:00 - 10:00 10:00-11:15 11:15-12:00 12:00 - 13:00 13:00 - 13:30 13:30 - 14:00 14:00 - 14:50 14:50 - 16:30 16:30 - 16:55 16:55 - 17:30 17:30 - 17:50 17:50 - 19:00 19:00 - 21 :00 ,2.50 RURD_ COIL CMPFLW nozzle. Ready to go to well with coil, decided to secure injector and complete reverse circulation in am. Secured well and BJ left lease 3.00 SAFETY MTG_ CMPFLW BJ coil arrived. Start all equipment and get a work permit. Discussed procedure and safety environmental issues. 1.25 RURD_ COIL CMPFLW Displacesd coil with Methanol. BHA same as day before, 1 3/4" coil, coil connector, 36" staright bar, 2" bull nose nozzle, Tested shell to 1000 psig. No leaks. RIH with coil pumping at 100 SCFM. 0.75 JET_ N2_ CMPFLW Good returns to tank. Increase N2 rate while running in hole to 500 SCFM. 58 bbls to flow back tank. 1,00 JET_ N2_ CMPFLW Coil tubing at 8551' CTM, parked coil. Set tubing packoff. Increase N2 rate to 1000 SCFM. started getting N2 to surface, Total returns 92 BBLS to flow back tank. 0.50 REPAIR EQIP CMPFLW Went to roll coil down hole. Increased pack off pressure to 2500 psig. Pressure fluctuated 500 psig down, coil would not move up or down. Suspect crimpped pipe. Shut down N2, Shut tubing rams. 0.50 REPAIR EQIP CMPFLW Opened up injector window. Found the packing on the tubing packing crushed. Inspected tubing, tubing crushed. Cannot move the coil either direction, 0,83 REPAIR EQIP CMPFLW Open choke through conventional return lines to flow back tank. Shut in reverse circulation returns. Wait on well to blow down. 1.67 REPAIR EQIP CMPFLW Well blown down to flow back tank, 0 psig on coil and well. Held safety meeting to discussion new project scope on cutting coil and reconnecting to real. Tarp coil and hard lines to try and keep lines from freezing off during shut down for cutting and reconnecting the coil. 0.42 REPAIR EQIP CMPFLW Opened up lubricator connection, dropped chains, had crane pickup the injector and coil 7'. Coil exposed underneath injector. Set tubing rams and slips. Crane set pressure down on slips to verify tubing rams holding. Confirmed tubing rams holding. 0.58 REPAIR EQIP CMPFLW Hosited 2 men up in man basket to cut weep hole in the tubing prior to cutting the coil. Confirmed no pressure on the coil. Cut the coil. Crane lowered the injector head down to ground, Checked pack off to see condition of coil through injector window. Pipe curshed about 10" at packoff location, Cut off the coil and repacked the packing, 0.33 REPAIR EQIP CMPFLW Dressed up the tubing above the BOP's to install a tubing connector. Verified the brass in good shape in the injector. Install the roll on x roll on tubing connector below the injectors. 1.17 REPAIR EQIP CMPFLW Drop injector down close bowen connection. Pull test coil at 23,500 Ibs for 5 minutes, test good. Chain down the injector, Reset locks on ram, manually release the blinds. Open slips. RIH 5' with coil. Started N2 unit cool down to displace the water out of coil to well. 2.00 REPAIR EQIP CMPFLW Start N2 to verify hard lines not frozen, Coil pressured up to 2300 psig. Coil froze between the tarped coil and the injector. No way to head overhead coil. Decide to RIH with coil to use well heat to help thaw out the coil. RIH with coil. When coil 8920' CTM plug released to well head. PUH with coil. SID N2, pump 3 bbls Methanol down coil. SID pump, start N2 at 1000 SCFM for 15 minutes. SD N2. Open well to flow back tank to blow down well head pressure before pulling the coil connector above the injector and well bore. Well blown down POOH with coil Coil connector on real with no problem bring coil on reel. SD N2, continue OOH with coil. OOH \with coil. SI well. RD and get the reellaoded out on a trailer to move to BJ shop to cut and weld the coil. 21:00-21:15 0.25 RUNPU COIL CMPFLW 21:15-21:45 0.50 RURD - COIL CMPFLW 21 :45 - 22:00 0.25 RURD - COIL CMPFLW 22:00 - 03:00 5,00 RURD - COIL CMPFLW Printed: 4/26/2005 1 :00:48 PM .. . . Marathon Oil Company Operations Summary Report BJ coil arrive on location with coil and cab, Held PJSM and uptained a work permit prior to starting job. Started equipment and spotted up coil. Displacesd coil with Methanol. BHA same as day before, 1 3/4" coil, coil connector, 36" staright bar, 2" bull nose nozzle. PU injector and connect to BOP's, Start N2 cool down to PT shell prior to opening up well. Open up Methanol tank to pump, pump 27 BBLs to displace coil with methanol. Do shell test at low pressure of 260 psig, High to 4500 psig. No leaks. Open coil and displace 30 bbls 50/50 Methanol to the well. Total fluid to recover is 209 bbls. Recovered 92 bbls on previous failed attempt to jet well dry. Total remaining fluid to recover is 117 bbls. CMPFLW RIH with coil, N2 rate at 1000 SCFM, PIP= 960 psig, WHP= 0 psig. CMPFLW Coil tubing at 7800' CTM. PIP = 150 psig, PIR= 0 SCFM. WHP= 0 psig. Continue down hole with coil. CMPFLW Start N2 at 400 SCFM, PIP= 788 psig, Rotating stock started leaking at the coil reel. Block in and isolated the rotating stock from the hard line to the flow back tank. Block in and greased fitting, open up return line to Flow back tank. Continue down hole with coil. Coil at 8500' CTM, increased N2 rate to 1500 SCFM, total = 30379 SCF. PIP= 1120 psig, WHP= 0 psig. Returns to tank, 9 bbls start fluid in tank, continue pumping N2 @ 1200 SCFM. PIP= 2000 psig, Shut in well. Pump 5 bbls. methanol water through coil tubing and displace with nitrogen to flowback tank. Blow down coil tubing to gas buster. RD Coil tubing injector head, BOP, and pump-in tee from tree. Pollard Slickline on location to run gauge ring. Held PJSM and uptained a work permit prior to starting job. Spotted slickline unit and crane truck. Expro spotted crane truck and wireline unit. Layed out liner and MU lubricator. 0.50 RURD_ SLlK CMPFLW MIRU Pollard slickline. Borrowed Expro tree cap connection and installed. PU 3.80" OD gauge ring and weight stem into lubricator. Took lubricator to wellhead. Pressure tested with 1500 psi nitrogen WHP. RIH with 3.80" gauge ring and tagged at 5863' WLM (5884' KB). Top of liner top packer at 5873' KB and liner hanger at 5897' KB. POOH and LD gauge ring and weight stem, PU and RIH with 3.80" swedge and roller stem to 11,400' WLM. POOH. RDMO Pollard Slickline. Held PJSM with Expro wireline and MOC personnel to discuss potential hazards and operational plan to perforate Tyonek interval. Reviewed and signed safe work permit. Bled down nitrogen pressure to 1050 psi overnight. Warmed up Expro equipment while holding PJSM. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Date From - To Hours Code Sub Phase Code 2/6/2005 09:10 - 11 :00 1.83 SAFETY MTG_ CMPFLW 11:00-13:10 2.17 RURD - COIL CMPFLW 13:10 - 14:20 1.17 RURD - COIL CMPFLW 14:20 - 14:45 0.42 RURD - COIL CMPFLW 14:45 - 16:30 16:30 - 16:50 1.75 JET_ N2_ 0.33 JET _ N2_ 16:50 - 17:05 0.25 JET _ N2_ 17:05 -17:10 0.08 JET_ N2 - CMPFLW 17:10 -17:20 0.17 JET_ N2 - CMPFLW 17:20 - 17:30 0.17 JET_ N2 - CMPFLW 17:30 - 19:00 1.50 JET_ N2 - CMPFLW 19:00 - 20:30 1.50 JET_ N2 - CMPFLW 20:30 - 22:30 2.00 RUNPU COIL CMPFLW 22:30 - 23:30 1.00 RURD - COIL CMPFLW 23:30 - 00:30 1.00 RURD_ COIL CMPFLW 3/16/2005 13:00 - 13:30 0.50 SAFETY MTG_ CMPFLW 13:30 - 14:00 14:00 - 15:30 1.50 RUNPU SLlK CMPFLW 15:30 - 17:00 1.50 CMPFLW 17:00 - 18:00 1.00 RURD SLlK CMPFLW 3/17/2005 07:00 - 07:30 0.50 SAFETY MTG - CMPFLW Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Description of Operations WHP= 30 psig, PIP= 2300 psig, good returns to tank. RIH with coil tubing to 9600' pumping N2 at 500 scfm. Recovered 90 bbls fluid. RIH pumping nitrogen to 10,300' MD. Recovered 96 bbls. fluid, RIH pumping nitrogen to 11,000' MD. Recovered 112 bbls. fluid. RIH pumping nitrogen to 11,820' MD and tagged PBTD with coil tubing. POOH with coil tubing trapping 1300 psi surface pressure on wellhead. Printed: 4/26/2005 1 :00:48 PM Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date . . Marathon Oil Company aperations Summary Report of6 SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION 3/17/2005 07:30 - 08:30 From- To Hours 1,00 Sub Code Code Phase CMPFLW 08:30 - 09:30 09:30 - 14:00 3/18/2005 14:00 - 15:30 15:30 - 17:00 08:00 - 08:30 08:30 - 10:00 10:00 - 11 :00 11 :00 - 13:00 13:00 - 14:00 14:00 - 17:00 1.00 RURD_ ELEC CMPPRF 4.50 RUNPU ELEC CMPPRF 1.50 RUNPU ELEC CMPPRF 1.50 RURD_ ELEC CMPPRF 0.50 SAFETY MTG_ CMPFLW 1.50 RUNPU ELEC CMPPRF 1.00 PERF _ CSG_ CMPPRF 2.00 RUNPU ELEC CMPPRF 1.00 PERF _ CSG_ CMPPRF 3.00 RUNPU ELEC CMPPRF 17:00 - 18:00 1.00 PERF _ CSG_ CMPPRF 18:00 - 19:00 1.00 RURD - ELEC CMPPRF 3/19/2005 07:30 - 08:30 1.00 CMPFLW 08:30 - 11 :00 2.50 CMPFLW Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Description of Operati~t'\s MU grease head to lubricator. MU tree cap connection and WL valve to top of swab valve. Armed firing head for PX-1. Pulled gun into lubricator. Took lubricator to wellhead and pressure tested to 1050 psi nitrogen with WHP. RIH with 24' loaded 3.375" aD perforating gun with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. RIH with 3.375" OD perforating gun with well shut in, Progress slowed considerably at 10150' MD. Worked guns down to 10530' MD in 3 hrs. Tried lubricating in one bbl of diesellmethanol mixture to "slick up" low side of hole but did not aid progress. It appears that the restriction is the wireline passing the new grease tubes, This wireline has not seen much previous service at this depth. Once the line is worked past tubes, it will pass easily. Decided to POOH to change out grease tubes. POOH and LD lubricator and live guns. Disarmed guns. Changed out grease tubes and retied rope socket. Held PJSM with Expro wireline and MOC personnel to discuss potential hazards and operational plan to perforate Tyonek interval. Reviewed and signed safe work permit. Warmed up Expro equipment while holding PJSM. Armed firing head for PX-1. Pulled gun into lubricator. Took lubricator to wellhead and pressure tested to 1050 psi nitrogen with WHP. RIH with 24'Ioaded 3.375" aD perforating gun with SDP-3125-311NT3, 25 gm. charges, 6 SPF on CCL. Correlated depth with Reeves Array Induction open hole log run Jan-06-2005 and Expro CBL run Jan-26-2005. Perforated 11147-11171' KB with 1050 psi nitrogen WHP. POOH with gun - all shots fired and round. No pressure response at wellhead after perforating. WHP still at 1050 psi after 30 minutes. Armed firing head for PX-1. Pulled gun into lubricator. Took lubricator to wellhead and pressure tested to 1050 psi nitrogen with WHP. RIH with 19' loaded 3,375" 00 perforating gun with SDP-3125-311NT3, 25 gm, charges, 6 SPF on CCL. Correlated depth. Perforated 11116-11135' KB with 1050 psi nitrogen WHP, Pressure climbed to 1070 psi in 10 min, 1090 psi in 30 min, 1130 in 45 min, and 1160 psi in 60 min. POOH with gun - all shots fired and round. Armed firing head for PX-1. Pulled gun into lubricator. Took lubricator to wellhead and pressure tested to 1250 psi nitrogenlmethane with WHP. RIH with 14' loaded 3.375" OD perforating gun with SDP-3125-311 NT3, 25 gm. charges, 6 SPF on CCL. Blew well down from 1250 to 1050 psi twice while RIH. Spent about 1/2 hr unwrapping twisted wire below top sheave. Correlated depth. Perforated 10876-10890' KB with 1050 psi nitrogenlmethane WHP. Pressure climbed to 1070 psi in 10 min, 1140 psi in 30 min, and 1200 in 45 min. POOH with gun - all shots fired and round. LD lubricator and installed night cap on WL valve. Expro arrived on location. Uptained a work permit from operations. Held PJSM and discussed safety issues with operators. WHP = 2800 psig from previous days perforating. Contacted Houston about well head pressure and decided to open well up to production to see if well would flow. Dropped well down to pipeline pressure at 760 psig, well flowing at 1010 MCFPD rate with no water production. Well flowed 1 bbl of water when first open well up to Printed: 4/26/2005 1 :00:48 PM . . Marathon Oil Company Operé1tionsSummary Report production. Discussed well rate with reservior and instructed to let the well flow to production over night to see how the well performs. Lay down Expro equipment and secured well. CMPFLW Installed the spidr gauge on tree and continue to flow well over night. Pipeline pressure rose to 800 psig from pipeline pigging operations, Expro arrive on location. Held PJSM and discussed previous days hazardous and any stop cards that were issued, Secured a work permit and started equipment. Continued rigging up on well. WHP= 762 psig, Well flowing at 1600 MCFPD rate, o BBLS fluid MU 3 3/8", 6 spf, 60 deg phased, 14' tag type perf gun with CCL. RIH with well flowing. Correlate CCL to CBL and verifed the open hole log on depth to the CBL. Tied into the short joint at 9755' DIL. Dropped down to 11000' and pull gun into depth to perforate, Shut in well to build pressure up to a 50% draw down. When pressure at 1050 psig continue with perforating. WHP= 1050 psig, perforated run#1, from 10,855' - 10, 869' DIL, 14' gun, POOH with gun after perforating. Wait 10 minutes after perforating before flowing well. Pressure build to 1193 psig in 10 minutes, Continue OOH with gun. Opened well to 3000 MCFPD, pressure down to 1074 psig. OOH with gun #1, run #5. All shots fired. WHP = 1050 psig, 1625 MCFPD rate, no water MU gun#2, 3 3/8",6 spf, 60 deg phased, 13' perf gun with CCL. RIH with well flowing. Correlate CCL to CBL and verifed the open hole log on depth to the CBL. Tied into the short joint at 9755' DIL. Drop down to 11020', PU hole with tool string to get on depth to perforate, the CCL was not picking up the collars to verify the depth. Had operator drop back down to 11000', PU hole with tools good collars. Pulled run#2 into perf intervals at 10769' - 10782' DIL, 13'. Well flowing at 1060 psig, 1700 MCFPD rate. Fired gun, POOH with gun. Monitored well while POOH with gun, WHP maintained at 1060 psig, flow rate up to 1930 MCFPD, no water after 1 hour. + 250- 300 MCFPD. OOH with gun, all shots fired, gun body dry, MU gun #3. RIH with gun. MU run#3, with 3 3/8", 6 spf, 60 deg phased, 24' tag type perf gun with CCL. RIH with well flowing. Correlate CCL to CBL and verifed the open hole log on depth to the CBL. Tied into the short joint at 9755' DIL. Drop gun down to 10800', PU gun into perf interval at 10612' - 10636' DIL, 24'. Veified well head pressure at 1056 psig, flow rate @ 1875 MCFPD. Fired gun, POOH with gun. OOH with gun#3, all shots fired, WHP= 1056 psig, 2713 MCFPD rate. Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Date From -To Hours Code Sub Phase Code 3/19/2005 08:30 - 11 :00 2.50 CMPFLW 11 :00 - 13:00 2.00 CMPFLW 13:00 - 14:00 1,00 3/20/2005 07:30 - 09:30 2.00 09:30 - 10:00 0.50 10:00 - 10:10 0,17 10:10 - 10:30 0.33 10:30 - 10:45 0.25 10:45 - 11 :30 0,75 11 :30 - 11 :40 0.17 11 :40 - 11 :50 0.17 11 :50 - 12:00 0.17 12:00 - 12:45 0.75 12:45 - 13:30 0.75 13:30 - 13:55 0.42 13:55 - 14:10 0.25 14:10 - 15:00 0.83 15:00 - 17:05 2.08 17:05 -17:10 0.08 Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Description of Operations Well increased +800 MCF from perforation MU gun#4, with 3/8", 6 spf, 60 deg phased, 20' tag type perf gun with CCL. RIH with well flowing. Correlate CCL to CBL. Tied into the short joint at 9755' DIL. WHP= 1056 psig, 2713 MCFPD rate. Dropped gun down to 10, 900', Pu gun to perf interval from 10582'- Printed: 4/26/2005 1 :00:48 PM . . Marathon Oil Company Op~rations Summary Reþort Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: SUSAN DIONNE 4 SUSAN DIONNE 4 ORIGINAL COMPLETION Start: 1/15/2005 Rig Release: Rig Number: Spud Date: 12/9/2004 End: Group: Date From- To Hours Code Sub Phase Code 3/20/2005 17:05 - 17:10 0.08 17:10 - 17:40 0,50 Desçription of Operations 17:40 - 18:00 0.33 18:00 - 18:20 0.33 18:20 - 19:20 1.00 10602' DIL, 20'. On depth with gun, fired gun. Well was at 1056 psig, 2710 MCFPD rate, no water. After gun fired gun moved up hole, In 2 minutes WHP was up to 1400 psig, Rate increased to 4600 MCFPD. Continue out of hole with gun #4. Choked back the well to keep the gun from getting blown up hole incase water was entering Well. Held flow at 3000 MCFPD rate while pulling gun out of the hole. WHP up to 2256 psig, Flow rate held at 2956 MCFPD. + 1200 psig, + 3000 MCF at held back rate. OOH with gun #4, Layed down lubricator, all shots fired, Wireline unit will be sent in for wire change out over the next two days. Secured well and had the operator open the well up to unload rate of 5500 MCFPD rate. WHP= 2130 psig at 5700 MCFPD, no water 3/23/2005 08:00 - 09:30 1.50 Expro left lease after signing out. Expro arrived on location, Held PJSM and secured a work permit for continued perforating in well. Discussed potential changes around well head with operations. Weill flowing at 5.5 MMCFPD, 2100 psig, 0 H20, 09:30 - 11 :20 1.83 11 :20 - 12:20 1.00 12:20 - 12:35 0.25 12:35 - 12:50 0.25 12:50 - 13:05 0.25 13:05 - 14:05 1.00 14:05 - 17:30 3.42 17:30 - 18:30 1.00 MU 33/8",6 SPF, 60 deg, phased, 23' tag type peforating gun with CCL. Open well and RIH with well flowing. Drop below short joint at 9755' tried to tie the CCL into the short joint. There was to much noise could not make out any collars. Had operator shut in well to get tied in to correct depth. Dropped down to 10400' , Shut well in and correlate depth to open hole gammay ray. Pulled the 23' gun into correct depth to perforate from 10559' - 10582' DIL, 23' gun. Well remained shut in to perforate. Production operator had to make repair to the Daniel senior fitting it was leaking condensate while wel shut in to perforate. WHP= 2470 psig while shut in. Peforated from 10559' - 10582' DIL, 23'. POOH with gun. OOH with gun, blew down lubricator. All shots fired. Continue to RD expro. Production opened well. Well flowing at 1595 psig, 7130 MCFPD. Expro RD and continue to clean up around well head where oil had spilled on liner around their boom truck. WHP= 1770 @ 7700 MCFPD Expro left lease. Plan to open well up to 8000 MCFPD. Printed: 4/26/2005 1 :00:48 PM Susan Dionne #4 Ninilchik Unit 104' FSL & 1331' FEL Sec.6-T1S-R13W J Conductor 20" MD TVD K-55 Ism.. 0' 0' 133 ppf Bottom 122' 122' PE Surface Casing 9-5/8" 40 ppf Ism.. MD 0' 1851' TVD 0' 12-1/4" hole with 403 sks 12 ppg c¡¡roent Intermediate Casinq 7" 26 ppf L-80 BTC Ism.. ~ MD 0' 6098' TVD 0' 3397' 8-1/2" hole with 263 sks 12.5 ppg Lead + 185 sks 15.8 ppg Tail TD: 11,953' MD 1 8367' Tve Tagged PBm at 11,820' with Expro CBUGR Tagged at 11820' MD with 2" nozzle on 1·3/4" Coil Tubing F9rmation Tops: Formation Beluga Tyonek TD Depth (MD) Depth (TVD) 912' 884' 6120' 3406' 11,953' 8367' Liner 4-1/2" 12.6 ppf L·80 Ism.. Bottom MO 5873' 11,927' TVD 3298' 8341' 6-1/8" hole with +1- 498 sks 13.5 ppg Hydril 533 ~ . . SURVEY LISTING Page 1 Well bore: SD #4 Wellpath: MWD <0-11953> Date Printed: 24-Jan-2005 .i. -- MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska INTEQ Wellbore Name I Created I Last Revised SO #4 I 13-Dec-2004 I 4-Jan-2005 Well Name I Government 10 I Last Revised SD#4 I I 28-0ct-2004 Name SD#4 Slot Latitude N60 6 46.2866 North 196.09N East 1339.22W Name Susan Oionne Coord S stem Name AK-4 on NORTH AMERICAN DATUM 1927 datum Name Ninilchik Field Coord S stem Name AK-4 on NORTH AMERICAN DATUM 1927 datum All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig ( Glacier 1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . SURVEY LISTING Page 2 Wellbore: SD #4 Wellpath: MWD <0-11953> Date Printed: 24-Jan-2005 .i. .... MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska INTEQ WellDath (Grid) Re :>ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ft 8ectionlftl 0.00 0.00 0.00 0.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 122.00 0.00 0.00 122.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 167.00 1.20 356.20 167.00 0.47N 0.03W 2.67 0.00 213102.29 2236588.21 226.00 2.00 314.10 225.97 1.80N 0.81W 2.32 0.67 213101.54 2236589.56 287.00 5.20 294.30 286.85 3.68N 4.10W 5.55 3.80 213098.30 2236591.52 347.00 9.40 285.00 346.35 6.07N 11.31W 7.25 10.81 213091.15 2236594.08 408.00 11.60 280.00 406.33 8.43N 22.16W 3.90 21.45 213080.35 2236596.69 469.00 12.80 276.30 465.95 10.23N 34.92W 2.35 34.04 213067.64 2236598.80 529.00 15.10 270.80 524.18 11.07N 49.34W 4.42 48.35 213053.24 2236599.98 589.00 17.40 265.60 581.78 10.49N 66.11W 4.53 65.11 213036.47 2236599.80 649.00 18.20 265.80 638.91 9.12N 84.40W 1.34 83.45 213018.15 2236598.86 709.00 19.30 265.70 695.72 7.69N 103.63W 1.83 102.74 212998.89 2236597.89 769.00 20.90 264.40 752.07 5.90N 124.17W 2.77 123.35 212978.32 2236596.59 834.00 22.10 264.70 812.54 3.64N 147.88W 1.85 147.17 212954.56 2236594.89 895.00 24.20 266.50 868.63 1.81N 171.79W 3.63 171.15 212930.61 2236593.64 958.00 27.40 267.50 925.34 0.39N 199.17W 5.13 198.56 212903.21 2236592.87 1020.00 30.70 268.20 979.53 0.738 229.25W 5.35 228.63 212873.11 2236592.47 1082.00 33.00 266.30 1032.20 2.318 261.92W 4.05 261.33 212840.41 2236591.66 1146.00 35.30 264.30 1085.16 5.288 297.72W 4.00 297.25 212804.55 2236589.55 1208.00 37.90 263.80 1134.93 9.118 334.48W 4.22 334.20 212767.71 2236586.59 1271.00 40.60 263.20 1183.71 13.63S 374.08W 4.33 374.03 212728.01 2236583.01 1333.00 42.70 264.30 1230.04 18.118 415.04W 3.59 415.21 212686.96 2236579.51 1396.00 45.10 265.30 1275.43 22.068 458.54W 3.97 458.88 212643.38 2236576.60 1458.00 47.70 264.70 1318.18 25.98S 503.26W 4.25 503.78 212598.57 2236573.75 1520.00 50.30 263.80 1358.86 30.67S 549.81W 4.33 550.55 212551.92 2236570.16 1580.00 52.60 263.80 1396.24 35.748 596.46W 3.83 597.45 212505.17 2236566.21 1643.00 54.90 263.80 1433.49 41.228 646.97W 3.65 648.22 212454.55 2236561.92 1705.00 57.10 265.00 1468.16 46.238 698.12W 3.89 699.61 212403.30 2236558.13 1767.00 59.90 265.20 1500.56 50.758 750.78W 4.52 752.46 212350.54 2236554.87 1803.00 61.70 264.70 1518.12 53.51S 782.08W 5.14 783.89 212319.18 2236552.85 1880.00 61.50 265.00 1554.74 59.598 849.54W 0.43 851.61 212251.59 2236548.38 1945.00 63.50 266.70 1584.76 63.768 907.04W 3.85 909.26 212194.01 2236545.58 2004.00 65.30 266.90 1610.25 66.73S 960.17W 3.07 962.46 212140.84 2236543.88 2066.00 65.30 267.00 1636.16 69.728 1016.41W 0.15 1018.77 212084.53 2236542.22 2128.00 65.10 267.00 1662.16 72.678 1072.62W 0.32 1075.03 212028.27 2236540.62 2190.00 64.90 266.00 1688.36 76.108 1128.70W 1.50 1131.22 211972.12 2236538.52 2252.00 64.90 266.00 1714.66 80.028 1184.71W 0.00 1187.36 211916.04 2236535.94 2315.00 64.80 266.30 1741.44 83.848 1241.61W 0.46 1244.39 211859.06 2236533.46 2377.00 64.80 264.80 1767.84 88.20S 1297.54W 2.19 1300.48 211803.05 2236530.44 2439.00 64.90 264.90 1794.19 93.23S 1353.43W 0.22 1356.60 211747.05 2236526.74 2501.00 64.70 264.50 1820.59 98.428 1409.29W 0.67 1412.69 211691.08 2236522.89 2563.00 65.00 264.90 1846.93 103.60S 1465.18W 0.76 1468.81 211635.09 2236519.03 2627.00 64.80 264.10 1874.08 109.16S 1522.87W 1.17 1526.75 211577.29 2236514.85 2688.00 64.00 263.70 1900.44 115.00S 1577.57W 1.44 1581.74 211522.47 2236510.31 2750.00 63.80 263.10 1927.72 121.40S 1632.87W 0.93 1637.38 211467.02 2236505.23 2812.00 63.90 263.30 1955.04 127.998 1688.14W 0.33 1692.98 211411.62 2236499.96 2874.00 64.00 264.60 1982.27 133.868 1743.53W 1.89 1748.66 211356.11 2236495.41 2935.00 63.90 263.50 2009.06 139.548 1798.03W 1.63 1803.44 211301.48 2236491.03 2997.00 63.90 263.90 2036.34 145.658 1853.37W 0.58 1859.08 211246.01 2236486.24 3061.00 64.00 263.60 2064.44 151.918 1910.53W 0.45 1916.55 211188.72 2236481.34 3123.00 63.70 263.50 2091.77 158.168 1965.83W 0.51 1972.17 211133.29 2236476.40 All data is in Feet unless otherwise stated Coordinates are from 810t MD's are from Rig and TVD's are from Rig (Glacier 1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . SURVEY LISTING Page 3 Wellbore: SD #4 Well path: MWD <0-11953> Date Printed: 24-Jan-2005 _i. -- MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska INTEQ Well path (Grid) Re port MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ftl 5ectionlftl 3185.00 63.90 263.70 2119.14 164.365 2021.11W 0.43 2027.76 211077.87 2236471.52 3246.00 63.90 263.90 2145.98 170.285 2075.57W 0.29 2082.52 211023.29 2236466.90 3309.00 64.00 263.70 2173.64 176.395 2131.84W 0.33 2139.09 210966.89 2236462.13 3372.00 64.10 264.70 2201.21 182.12S 2188.20W 1.44 2195.72 210910.41 2236457.75 3434.00 63.90 263.70 2228.39 187.755 2243.64W 1.49 2251.43 210854.86 2236453.44 3496.00 64.00 265.30 2255.62 193.09S 2299.08W 2.32 2307.11 210799.30 2236449.42 3558.00 64.10 264.60 2282.75 197.995 2354.61W 1.03 2362.86 210743.67 2236445.84 3621.00 64.20 265.10 2310.22 203.08S 2411.08W 0.73 2419.55 210687.10 2236442.09 3683.00 63.90 264.20 2337.35 208.28S 2466.59W 1.39 2475.29 210631.49 2236438.22 3744.00 64.00 265.10 2364.14 213.395 2521.15W 1.34 2530.08 210576.82 2236434.41 3807.00 64.00 264.90 2391.76 218.325 2577.56W 0.29 2586.70 210520.31 2236430.82 3871.00 63.90 265.30 2419.86 223.245 2634.85W 0.58 2644.20 210462.92 2236427.27 3931.00 64.10 266.20 2446.17 227.235 2688.62W 1.39 2698.13 210409.06 2236424.56 3993.00 64.10 265.70 2473.25 231.175 2744.26W 0.73 2753.90 210353.35 2236421.94 4055.00 64.00 266.00 2500.38 235.205 2799.86W 0.46 2809.65 210297.67 2236419.23 4117.00 63.80 265.00 2527.66 239.575 2855.36W 1.48 2865.32 210242.08 2236416.19 4179.00 63.80 265.40 2555.03 244.235 2910.80W 0.58 2920.95 210186.55 2236412.85 4241.00 63.90 265.90 2582.35 248.455 2966.29W 0.74 2976.61 210130.97 2236409.95 4304.00 63.90 265.40 2610.07 252.745 3022.71W 0.71 3033.18 210074.47 2236407.00 4366.00 63.80 265.40 2637.40 257.205 3078.18W 0.16 3088.83 210018.91 2236403.86 4428.00 64.00 266.30 2664.67 261.235 3133.71W 1.34 3144.51 209963.29 2236401.16 4491.00 64.00 265.50 2692.29 265.28S 3190.19W 1.14 3201.13 209906.74 2236398.45 4556.00 63.90 265.40 2720.84 269.915 3248.40W 0.21 3259.53 209848.43 2236395.21 4616.00 63.90 265.00 2747.23 274.425 3302.09W 0.60 3313.41 209794.65 2236391.98 4678.00 64.20 265.80 2774.36 278.895 3357.66W 1.26 3369.16 209738.99 2236388.83 4740.00 64.00 266.00 2801.44 282.885 3413.29W 0.43 3424.93 209683.28 2236386.17 4803.00 63.90 265.50 2829.11 287.075 3469.74W 0.73 3481.53 209626.75 2236383.32 4864.00 64.20 266.30 2855.80 291.005 3524.45W 1.28 3536.38 209571.97 2236380.70 4927.00 64.00 266.10 2883.32 294.755 3580.99W 0.43 3593.05 209515.35 2236378.29 4989.00 63.90 264.90 2910.55 299.125 3636.52W 1.75 3648.75 209459.73 2236375.24 5051.00 63.90 265.70 2937.83 303.685 3692.01W 1.16 3704.42 209404.15 2236372.00 5114.00 63.90 265.30 2965.54 308.125 3748.41W 0.57 3761.00 209347.66 2236368.91 5175.00 64.10 265.90 2992.28 312.335 3803.08W 0.94 3815.82 209292.91 2236366.00 5237.00 63.90 265.20 3019.46 316.655 3858.63W 1.06 3871.55 209237.26 2236363.00 5299.00 64.30 266.40 3046.55 320.74S 3914.26W 1.86 3927.32 209181.56 2236360.25 5359.00 64.10 265.50 3072.66 324.55S 3968.14W 1.39 3981.34 209127.60 2236357.71 5422.00 63.90 265.20 3100.28 329.14S 4024.58W 0.53 4037.96 209071.07 2236354.47 5484.00 63.90 265.40 3127.55 333.705 4080.07W 0.29 4093.64 209015.49 2236351.23 5547.00 63.80 265.50 3155.32 338.19S 4136.44W 0.21 4150.19 208959.03 2236348.08 5610.00 64.20 266.40 3182.94 342.19S 4192.92W 1.43 4206.81 208902.47 2236345.43 5671.00 63.90 266.20 3209.63 345.73S 4247.66W 0.57 4261.66 208847.66 2236343.20 5735.00 64.10 266.00 3237.69 349.645 4305.05W 0.42 4319.18 208790.20 2236340.65 5796.00 64.10 265.90 3264.33 353.515 4359.78W 0.15 4374.05 208735.38 2236338.08 5858.00 63.90 265.90 3291.51 357.505 4415.36W 0.32 4429.77 208679.72 2236335.42 5920.00 64.20 266.10 3318.64 361.395 4470.98W 0.56 4485.52 208624.03 2236332.85 5982.00 63.90 265.10 3345.77 365.665 4526.56W 1.53 4541.27 208568.36 2236329.90 6043.00 64.00 266.00 3372.56 369.925 4581.20W 1.34 4596.07 208513.64 2236326.95 6215.00 63.30 264.60 3448.91 382.545 4734.80W 0.84 4750.19 208359.78 2236317.99 6277.00 63.00 265.10 3476.91 387.505 4789.90W 0.87 4805.50 208304.59 2236314.33 6339.00 62.60 266.00 3505.25 391.785 4844.87W 1.44 4860.65 208249.52 2236311.36 6402.00 62.00 265.90 3534.53 395.72S 4900.51W 0.96 4916.42 208193.81 2236308.75 All data is in Feet unless otherwise stated Coordinates are from 510t MD's are from Rig and TVD's are from Rig (Glacier 1 156.0ft above Mean Sea Level) Vertical 5ection is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 4 Well bore: SD #4 Well path: MWD <0-11953> Date Printed: 24-Jan-2005 .i. --=- INTEQ Well path (Grid) Report MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ftl Sectionlftl 6463.00 61.30 264.00 3563.50 400.44S 4953.98W 2.97 4970.10 208140.24 2236305.30 6526.00 61.00 264.30 3593.90 406.07S 5008.88W 0.63 5025.26 208085.23 2236300.99 6588.00 60.60 263.60 3624.15 411.77S 5062.70W 1.18 5079.36 208031.29 2236296.56 6652.00 60.00 264.30 3655.86 417.63S 5117.98W 1.33 5134.93 207975.88 2236292.02 6714.00 59.20 265.40 3687.23 422.445 5171.24W 2.00 5188.40 207922.53 2236288.49 6777.00 58.40 266.90 3719.87 426.065 5225.00W 2.40 5242.28 207868.69 2236286.15 6839.00 57.90 265.80 3752.59 429.41 S 5277.56W 1.71 5294.94 207816.07 2236284.05 6902.00 57.80 266.60 3786.11 432.945 5330.78W 1.09 5348.28 207762.78 2236281.78 6964.00 56.60 265.00 3819.70 436.755 5382.75W 2.91 5400.39 207710.73 2236279.21 7028.00 54.60 266.70 3855.86 440.585 5435.41W 3.82 5453.19 207658.00 2236276.63 7090.00 52.60 265.30 3892.65 444.065 5485.19W 3.70 5503.09 207608.15 2236274.34 7153.00 51.50 265.90 3931.39 447.875 5534.72W 1.90 5552.76 207558.54 2236271.71 7215.00 49.40 267.20 3970.87 450.76S 5582.44W 3.75 5600.56 207510.77 2236269.96 7277.00 48.20 265.40 4011.71 453.76S 5628.98W 2.92 5647.20 207464.17 2236268.07 7339.00 47.20 266.10 4053.43 457.16S 5674.72W 1.82 5693.06 207418.37 2236265.76 7401.00 46.50 266.40 4095.84 460.125 5719.85W 1.18 5738.29 207373.18 2236263.87 7463.00 45.30 266.00 4138.98 463.075 5764.28W 1.99 5782.81 207328.69 2236261.98 7525.00 44.10 267.10 4183.05 465.705 5807.81W 2.30 5826.41 207285.12 2236260.39 7587.00 42.70 265.70 4228.10 468.36S 5850.32W 2.74 5869.00 207242.55 2236258.73 7649.00 41.10 266.60 4274.25 471.15S 5891.63W 2.76 5910.40 207201.19 2236256.93 7713.00 39.60 266.50 4323.02 473.645 5932.99W 2.35 5951.83 207159.78 2236255.42 7774.00 39.10 267.70 4370.19 475.605 5971.61W 1.49 5990.50 207121.12 2236254.38 7836.00 38.20 267.70 4418.61 477.155 6010.31W 1.45 6029.19 207082.40 2236253.75 7898.00 36.70 266.20 4467.83 479.155 6047.95W 2.83 6066.88 207044.72 2236252.65 7960.00 35.40 266.80 4517.96 481.385 6084.37W 2.17 6103.36 207008.26 2236251.29 8022.00 34.50 266.10 4568.77 483.58S 6119.81W 1.59 6138.87 206972.77 2236249.94 8084.00 33.00 264.80 4620.32 486.30S 6154.15W 2.69 6173.32 206938.38 2236248.03 8147.00 32.10 265.90 4673.43 489.06S 6187.93W 1.71 6207.21 206904.54 2236246.08 8200.00 31.90 264.70 4718.38 491.365 6215.92W 1.26 6235.29 206876.51 2236244.45 8273.00 32.00 265.30 4780.32 494.72S 6254.40W 0.46 6273.92 206837.95 2236242.00 8335.00 32.90 264.70 4832.64 497.625 6287.54W 1.54 6307.19 206804.76 2236239.89 8395.00 31.10 263.60 4883.52 500.86S 6319.17W 3.15 6338.97 206773.06 2236237.41 8461.00 29.70 264.90 4940.44 504.21S 6352.40W 2.34 6372.35 206739.76 2236234.84 8521.00 27.60 263.40 4993.09 507.13S 6381.01W 3.70 6401.11 206711.09 2236232.61 8583.00 26.70 262.90 5048.26 510.505 6409.1 OW 1.50 6429.37 206682.93 2236229.90 8644.00 26.60 263.90 5102.78 513.655 6436.28W 0.75 6456.71 206655.68 2236227.41 8706.00 25.60 263.30 5158.46 516.685 6463.39W 1.67 6483.97 206628.51 2236225.02 8767.00 23.90 263.80 5213.85 519.565 6488.76W 2.81 6509.49 206603.07 2236222.75 8831.00 22.60 265.00 5272.66 522.035 6513.90W 2.16 6534.75 206577.88 2236220.87 8893.00 20.70 266.10 5330.28 523.815 6536.71W 3.13 6557.62 206555.04 2236219.63 8955.00 19.10 267.30 5388.58 525.045 6557.77W 2.66 6578.72 206533.95 2236218.91 9017.00 18.10 267.20 5447.34 525.995 6577.52W 1.61 6598.49 206514.18 2236218.43 9079.00 17.20 266.40 5506.42 527.03S 6596.29W 1.50 6617.28 206495.40 2236217.84 9141.00 16.30 265.10 5565.79 528.355 6614.11W 1.57 6635.15 206477.55 2236216.94 9203.00 15.20 264.40 5625.46 529.89S 6630.87W 1.80 6651.97 206460.76 2236215.80 9266.00 13.50 264.80 5686.49 531.36S 6646.41W 2.70 6667.59 206445.19 2236214.70 9326.00 12.80 265.80 5744.92 532.48S 6660.02W 1.23 6681.23 206431.56 2236213.90 9390.00 10.90 267.00 5807.55 533.32S 6673.13W 2.99 6694.37 206418.43 2236213.38 9453.00 9.00 269.40 5869.60 533.685 6684.01W 3.09 6705.25 206407.55 2236213.28 9515.00 7.50 271.60 5930.96 533.62S 6692.90W 2.47 6714.11 206398.66 2236213.55 9577.00 6.80 269.80 5992.47 533.525 6700.62W 1.19 6721.80 206390.95 2236213.83 All data is in Feet unless otherwise stated Coordinates are from 510t MD's are from Rig and TVD's are from Rig (Glacier 1 156.0ft above Mean 5ea Level) Vertical 5ection is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 5 Wellbore: SD #4 Well path: MWD <0-11953> Date Printed: 24-Jan-2005 ... ..,. INTEQ Well oath (Grid) Report MD[ft] Inc{deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing fdea/100ftl Sectionfftl 9640.00 4.70 266.30 6055.15 533.70S 6706.93W 3.38 6728.10 206384.64 2236213.80 9702.00 4.00 266.70 6116.98 533.995 6711.62W 1.13 6732.80 206379.94 2236213.63 9766.00 3.20 265.00 6180.85 534.275 6715.63W 1.26 6736.82 206375.93 2236213.44 9827.00 1.50 247.10 6241.80 534.735 6718.06W 3.00 6739.28 206373.48 2236213.04 9889.00 0.40 279.90 6303.79 535.01S 6719.02W 1.91 6740.26 206372.52 2236212.78 9952.00 0.20 329.30 6366.78 534.875 6719.29W 0.49 6740.52 206372.25 2236212.92 10015.00 0.10 336.60 6429.78 534.73S 6719.37W 0.16 6740.58 206372.17 2236213.07 10075.00 0.30 140.70 6489.78 534.805 6719.29W 0.66 6740.51 206372.25 2236212.99 10138.00 0.40 144.20 6552.78 535.115 6719.06W 0.16 6740.30 206372.48 2236212.68 10200.00 0.50 135.60 6614.78 535.48S 6718.74W 0.19 6740.02 206372.78 2236212.30 10263.00 0.70 152.70 6677.78 536.02S 6718.37W 0.42 6739.69 206373.14 2236211.76 10324.00 0.70 131.00 6738.77 536.59S 6717.92W 0.43 6739.28 206373.58 2236211.17 10385.00 0.90 121.60 6799.77 537.095 6717.23W 0.39 6738.63 206374.25 2236210.66 10448.00 1.00 114.20 6862.76 537.575 6716.31W 0.25 6737.75 206375.17 2236210.15 10510.00 1.00 106.20 6924.75 537.955 6715.30W 0.23 6736.77 206376.17 2236209.76 10570.00 1.20 107.40 6984.74 538.285 6714.19W 0.34 6735.70 206377.26 2236209.40 10633.00 1.50 116.50 7047.72 538.84S 6712.83W 0.58 6734.37 206378.62 2236208.80 10694.00 1.50 105.40 7108.70 539.41S 6711.34W 0.48 6732.94 206380.09 2236208.20 10757.00 1.50 118.60 7171.68 540.035 6709.82W 0.55 6731.47 206381.59 2236207.55 10820.00 2.00 108.30 7234.65 540.77S 6708.06W 0.93 6729.76 206383.34 2236206.76 10881.00 1.90 110.10 7295.61 541 .45S 6706.1 OW 0.19 6727.86 206385.28 2236206.04 10945.00 1.90 110.90 7359.58 542.195 6704.11W 0.04 6725.94 206387.25 2236205.25 11069.00 2.40 114.50 7483.49 544.005 6699.82W 0.42 6721.81 206391.49 2236203.33 11194.00 2.70 109.30 7608.37 546.065 6694.66W 0.30 6716.82 206396.60 2236201.15 11319.00 2.60 102.60 7733.23 547.655 6689.12W 0.26 6711.41 206402.11 2236199.43 11445.00 2.10 96.00 7859.13 548.515 6684.03W 0.45 6706.41 206407.17 2236198.45 11532.00 2.40 100.80 7946.06 549.025 6680.66W 0.41 6703.08 206410.53 2236197.86 11629.00 2.90 96.20 8042.96 549.675 6676.23W 0.56 6698.71 206414.95 2236197.11 11752.00 2.60 89.90 8165.82 550.005 6670.34W 0.35 6692.87 206420.82 2236196.63 11879.00 3.10 89.10 8292.66 549.945 6664.03W 0.39 6686.57 206427.14 2236196.54 11896.00 2.60 98.70 8309.64 549.99S 6663.19W 4.06 6685.73 206427.98 2236196.47 11953.00 2.61 98.71 8366.58 550.38S 6660.63W 0.02 6683.21 206430.53 2236196.02 All data is in Feet unless otherwise stated Coordinates are from 510t MD's are from Rig and TVD's are from Rig (Glacier 1 156.0ft above Mean 5ea Level) Vertical Section is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska SURVEY LISTING Page 6 Wellbore: SD #4 Wellpath: MWD <0-11953> Date Printed: 24-Jan-2005 mi. .,. INTEQ Comments Comment Pro'ection to TD Hole Sections Diameter Start Start Start Start End End End Start Wellbore finl MDfftl TVDfftl Northfftl Eastfftl MDfftl TVDfftl Northfftl Eastfftl 121/4 0.00 0.00 O.OON O.OOE 1861.00 1545.68 58.13S 832.91W SD#4 81/2 1861.00 1545.68 58.13S 832.91W 6116.00 3404.73 374.82S 4646.54W SD#4 61/8 6116.00 3404.73 374.82S 4646.54W 11953.00 8366.58 550.385 6660.63W SD#4 Casinas Name Top Top Top Top Shoe Shoe Shoe Shoe Wellbore MDfftl TVDfftl Northfftl Eastfftl MDfftl TVDfftl Northfftl Eastfftl 20" Conductor 0.00 0.00 O.OON O.OOE 122.00 122.00 O.OON O.OOE SD#4 9 5/8" Casino 0.00 0.00 O.OON O.OOE 1851.00 1540.92 57.35S 824.15W SD#4 7" Casino 0.00 0.00 O.OON O.OOE 6097.00 3396.33 373.48S 4629.56W SD#4 41/2" Liner 0.00 0.00 O.OON O.OOE 11953.00 8366.58 550.38S 6660.63W SD#4 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Glacier 1 156.0ft above Mean Sea Level) Vertical Section is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6683.33 Feet on azimuth 265.28 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated .. ~~~~Œ (ID~ ~~~~[K\~ AI,ASKA. OIL AND GAS CONSERVATION COMMISSION Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Hou~on, Texas 77253 FRANK H. MURKOW5KI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Susan Dionne #4 Marathon Oil Company Permit No: 204-233 Surface Location: 104' FSL, 1331' FEL, SEC. 6, TIS, R13W, S.M. Bottomhole Location: 410' FNL, 3095' FEL, SEC. 12, TIS, RI4W, 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 Company 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. Faìlure 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. Please provide at least twenty-four (24) hours notice for a representative of the Commission to 'tness any required test. Contact the Commission's petroleum field inspector at (907 659- 0 ger). BY ORDER O~HE COMMISSION DATED this /1:. ay of November, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. . . Worldwide Drilling North America Marathon Oil Company P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 November 15, 2004 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West th Ave, Suite 100 Anchorage, AK 99501 7'\\U4 Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit - Susan Dionne #4 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a Tyonek exploitation well. /' If you require further information, I can be reached at 713-296-3273 or bye-mail at wjtan k@marathonoil.com. Sincerely, }/¡jkJ }~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures OR~GiNAL ~GI\- il /1(,1 2.0Qt 1a. Type of Work: Drill lJ Redrill D 1 b. Current Well Class: Exploratory D Development Oil lJ· Multiple Zone [] Re-entry D Stratigraphic Test D Service D Development Gas 0 <$Íngle Zone D 2. Operator Name: 5, Bond: Blanket lJ Single Well U 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Ninilchik Unit - Susan Dionne #4 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 3128, Houston, TX 77253 MD: 11,616 TVD: 8,000 Ninilchik Unit 4a. Location of Well (Governmental Section): 7, Property Designation: Tyonek Pool Surface: 104' FSL, 1,331' FEL, Sec. 6, T1S, R13W, S.M. ADL 384372 Top of Productive Horizon: 8. Land Use Permi!: 13. Approximate Spud Date: 264' FNL, 1,193' FEL, See, 12, T1S, R14W, S.M. November 24, 2004 Total Depth: 9. Acres in Property: 14. Distance to Nearest 410' FNL, 3,095' FEL, Sec. 12, T1S, R14W, S.M, 3,508 Property: 1,100 ft (ADL 359242) 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x - 213,102.309 Y - 2,236,587.738 Zone - 4 (Height above GL): (21' AGL) 156 feet Within Pool: 2,700 ft. to SO #3 16. Deviated wells: Kickoff depth: 250 feet 11'. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 64.11 degrees Downhole: 3,744 Surface: 1,986 / 18. Casing Program: Specifications Setting Depth Quantity of Cement Size Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K-55 PE 101' 0' 0' 122' 122' 12 1/4" 95/8" 40 L-80 BTC 1,832' 0' 0' 1,853' 1,539' 453 sacks /" 81/2" 7" 29 L-80 BTC 6,095' 0' 0' 6,116' 3,400' 429 sacks /" 61/8" 4 1/2" 12.75 L-80 Hydril 533 5,716' 5,900' 3,306' 11,616' 8,000' 398 sacks / 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drillinç Program ~ Time v. Depth Plot U Shallow Hazard Analysis U Property Plat 0 Diverter Sketch 0 Seabed Report D Drilling Fluid Program 0 20 AAC 25.050 reqLHrements D 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer ),i (J/J '/1) }: A/\ )! Signature 'it/VY /l. ' Phone 713-296-3273 Date November 15, 2004 {/ Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: '2-04 - L ~~ 50- 1?3 - '2054 ? Date: /¿,p~ft V requirements. C"d't'", of app""V(':;i 6 amp'" ,"'c" Yes D No ~ Mud log required Yes D No ~ H sulfide measures Yes D No gr Directional survey required Yes ~ No D Othec i,;;'t;, to 1- SOO pç ¿ . Approv by: ~~ APPROVED BY hit; IfJt? THE COMMISSION Date: '-" "-"" .. I lsubmi~nDuPlicate Form 10-401 Revised 06/200 . STATE OF ALASKA ... LASKA OIL AND GAS CONSERVATION MMISSION PERMIT TO DRILL 20 MC 25 005 OR!GINAL . . MARATHON MARATHON Oil COMPANY DRilliNG PROGRAM Ninilchik Unit Susan Dionne #4 Original 11/15/04 Originator: Drilling Superintendent: North America Drilling Manager: W.J. Tank #Ii cd 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,.,..,.,.,.......,................,.,.....".".,.,.,.,.,.,.,.,.,.,.,.,.,...,.,.,.,.,...,.,...,.,...,...,.......,....................... ....10 Drilling Fluid Program Summary..,.,.,.,...........,.,.".,.,.,...,.................................,.........,.,.,.,...,.,...,.,.,.,.,.,..,..,.,.,.,.,.,.,.,......,. ,.,.,10 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 Susan Dionne #4 LeaselLicense Surface Location 104' FSL, 1,331' FEL, Sec. 6, T1S, R13W, S.M. / WBS Code DD.04.10980.CAP.DRL Slot/Pad Susan Dionne Pad Field Ninilchik Unit Spud Date 11/24/04 (est.) KB Elev, 156 County/Province Kenai Peninsula API No. Ground Level Elev. 135 State I Country Alaska Well Class Development Perm. Datum KB Total MD 11,616' Rig Contractor Glacier Drilling Water Depth NIA Total TVD 8,000' Rig Name #1 Water Protection Depth Comments: Geoloaic Proaram Summary MD - RKB TVD - RKB Pore Pressure Pore Pressure Possible Fluid Formation (ft) (ft) (psi) (ppg) Lithology Content Beluga (Not a Prod Target) 925 900 8.46 Sandstone Water Tyonek (Target) 6,336 3,496 9.00 Sandstone Gas Tyonek T-2 (Target) 7,491 4,131 9.00 Sandstone Gas Tyonek T-3 (Target) 9,348 5,736 7.80 - 9.00 Sandstone Gas Comments: Surface Location Coordinates From Lease/Block Lines 104' FSL, 1,331' FEL, See, 6, T1S, R13W, S.M. Latitude 60° 06' 46.287" N Longitude 151" 34' 21.711"W UTM North (Y) 2,236,587.738' UTM East (x) 213,102.309' Tolerance Depth Horizontal Displacement (ft) MD TVD +N/-S +E/-W Tolerance Directional Target (ft) (ft) Location (Y) (X) (ft) Tyonek 6,336 3,496 264' FNL, 1,193' FEL, Sec. 12, T1S, R14W, S.M. / -370 -4,826 Circle 200' radius Tyonek T-3 9,348 5,736 405' FNL, 3,031' FEL, Sec. 12, T1S, R14W, S.M. -511 -6,664 Circle 200' radius TD 11,616 8,000 410' FNL, 3,095' FEL, Sec. 12, T1S, R14W, S.M. / -516 -6,728 Circle 200' radius Comments: Page 3 of 13 . . Summarv of Potential Drilling Hazards Hazard Event Discussion Bit or BHA balling in surface hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Torque concerns in intermediate and Use good hole cleaning techniques with high pump rates. Add lubricant where necessary. production hole sections Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed, A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered, No H2S is anticipated. Gas sands will be encountered from +1- 2,566' MD (1,850' TVD) to total depth of the well. These sands will run from slightly depleted to slightly above normal pressure. The Flo-Pro mud system that will be properly weighted to hydraulically control all sands and lost circulation materials will be available on location, if required, Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' - 1,853' MD Intermediate None Reeves Quad Combo on shuttle. Pull GR- Basic with GCA, shale density, temperature in and out, 1,853' - 6,116' MD Neutron to surface inside casing. sample collection (10' samples). Production None Reeves Quad Combo and MFT Pressures. Basic with GCA, shale density, temperature in and out, 6,116' - 11,616' MD sample collection (10' samples). Completion NIA GR, CCL N/A Coring Requirements: 2 - 90' cores. One to be taken at approximately 4,800' TVD and one at approximately 7,000' TVD. Final depths to be determined during drilling operations. Comments: Page 4 of 13 . . Drillina Proaram Summary CONDUCTOR: 1. 2. 3. 4, 5, Drive 20" conductor to +1-100 ft. RKB, Move in and rig up rotary drilling rig. Install starting head 20" SLC x 21 1/4", 2M flanged. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. Function test diverter and diverter valve, / SURFACE: 1. Drill a 12 1/4" hole to 1,853' MD (1,539' TVD) per the directional plan, 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. Test surface casing to 2,500 psi INTERMEDIATE: 1. 2, 3. 4, 5. PU 8 1/2" POC bit and rotary steerable directional BHA. Drill out float equipment and 20' of new formation. CBU. Test shoe to leak off. Estimated EMW is 18,5 ppg, Drill 8 1/2" directional hole to 6,116' MD (3,400' 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 drill pipe utilizing the shuttle system, TOOH with logging tool. Pull wear bushing. Change out pipe rams with 7" casing rams in single ram, Run test plug and test casing rams to 2,500 psi. Run and cement 7" casing. Land hanger in multibowl wellhead, / Back out landing joint. Change out 7" casing rams with pipe rams. Run test plug and test BOP's to 250/2,500 psi. / Set wear bushing. Test intermediate casing to 2,500 psi, 6. 7. 8. 9. PRODUCTION: 1, PU 6 1/8" PDC bit and rotary steerable directional BHA. Drill float equipment and 20' of new formation, CBU. 2, Test shoe to leak off. Estimated EMW 17.5 ppg, 3, Drill a 6 1/8" hole to approximately 8,332' MD (4,800' TVD) as per the directional program, short tripping as required, POOH for coring assembly. TIH with core bit and barrel and cut 90' of core. TOOH with core. 4. TIH with 6 1/8" directional assembly and continue drilling per directional program, short tripping as required. Drill to approximately 10,616' MD (7,000' TVD), POOH for coring assembly, TIH with core bit and barrel and cut 90' of core. TOOH with core. 5, TIH with 6 1/8" directional assembly and continue drilling to an anticipated TO of 11,616' MD (8,000' TVD). 6. At TD circulate hole clean, Make wiper trip, TOOH. 7. RU logging company. Run open hole logs as per plan. RD logging company. 8. TIH w/6 1/8" tri-cone bit to TO for wiper trip. TOOH and laydown BHA and drill pipe, Pull wear bushing. 9. Run 4 1/2" Hydril 533 casing liner with hanger and liner hanger packer on drill pipe to TD. On bottom reciprocate and rotate / liner while circulating the hole. Cement casing as per the attached cementing program, while reciprocating and rotating liner, displacing cement with gelled KCI. Bump plug with 500 psi over displacement pressure, 10. Set liner hanger and packer (liner top at approx. 5,900' MD (3,306' TVO), disconnect from liner, circulate hole clean. TOOH. 11. PU mill for 4 1/2" along with string mill for 7" casing, Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe, 12. Polish 4 1/2" liner seal bore. TOOH laying down. 13. Run 41/2" tubing with seal unit. Displace hole with 6 % KCL. Space out tubing and land hanger, ND BOP, NU tree and test/ to 5,000 psi. / 14. Rig down and move out drilling rig. COMPLETION: Completion will be done without a rig. Page 5 of 13 . . Casina Proaram MD (ft) Connection API Ratings Casing Q) c Makeup - ~ ~~ 0 íñ f!! ¡ii ('0 tJ) .¡¡¡ a. Size Weight O,D. Torque Hole Size ::J .8: = a. c ;g II:I o~ Q) (in) Top Bottom (Ibs/ft) Grade Type (in) (ft-Ibs) (in) Ü I- 95/8 Surface 1,853 40 L-80 BTC 10.625 NIA * 12 1/4 5,750 3,090 916 7 Surface 6,116 29 L-80 BTC 7.656 NIA * 81/2 8,160 7,030 676 41/2 5,900 11,616 12.75 L-80 Hydril 533 4.926 13,120 61/8 8,430 7,500 288 Comments: Make-up torque shown for the Hydril 533 is 80% of yield. The final make up torque for the liner should be above any potential torque that would be used to release the running tool from the hanger. See liner running procedure for more details, * The make up of the buttress connection will be to the proper mark. Casina Desian Casing Shoe Safety Factors Q) c Casing Setting Mud Wt Frac, Form Maximum Surface tJ) a. 0 - J!! .¡¡¡ Size Weight Depth When Set Grad Press Pressure f!! '0 c ::J Q) (in) (Ib/ft) Grade (TVD) (Ib/gal) (Ib/gal) (Ib/gal) (psi) II:I Ü I- 95/8 40 L-80 1,539 9.4 18,5 9.00 844 3.63 3.23 3,83 7 29 L-80 3,400 9.6 17.5 9.00 1,986 2,59 3.35 2.96 41/2 12,75 L-80 8,000 9.6 17.5 9.40 1,986 2.21 1.88 1.95 Comments: Maximum Anticipated Surface Pressure Setting Depth Casing Size TVD MAWP * MASP ** MudlGas (in) (ft) (psi) (psi) Ratio 95/8 1,539 3,937 844 30/70 7 3,400 5,635 1,986 30170 41/2 8,000 5,635 1,986 30170 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure Comments: MASP I MAWP CALCULATIONS: Surface casino: 95/8" (1,853' MD. 1.539' TVD) MASPfrac = {(Fracture gradient at shoe + SF) x ,052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (18,5 ppg + 0.5 ppg) x .052 x 1,539' - (.1 psilft x 1,539') MASPfrac = 1,521 psi - 154 psi MASPfrac = 1,367 psi. Page 6 of 13 . . MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (9.00 ppg x .052 x 3,400') - (0,3 x 9.6 ppg x ,052 x 3,400') - (0.7 x 0.1 psilft x 3,400') MASPbhp = 1,591 psi - 509 psi - 238 psi MASPbhp = 844 psi MASP = MASPbhp = 844 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x ,052 x TVD MAWP = (0,7 x 5,750) - (9.4 - 8,3) x ,Qt¡2 x 1,539' MAWP = 4,025 psi - 88 psi = 3,937 psi Intermediate casina: 7" (6.116' MD, 3.400' TVD) MASPfrac = (Fracture gradient at shoe + SF) x ,052 X TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (17.5 ppg + 0,5 ppg) x .052 x 3,400' - (.1 psilft x 3,400') MASPfrac = 3,182 psi - 340 psi MASPfrac = 2,842 psi. MASPbhp = BHPopen holetd - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbhp = (9.00 ppg x ,052 x 8,000') - (0.3 x 9.6 ppg x ,052 x 8,000') - (0,7 x 0.1 psi/ft x 8,000') MASPbhp = 3,744 psi - 1,198 psi - 560 psi MASPbhP = 1,986 psi MASP = MASPbhp = 1,986 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 8,100) - (9.6 - 9.4) x .052 x 3,400' MAWP = 5,670 psi - 35 psi = 5,635 psi Production liner: 41/2" (Top - 5.900' MD. 3.306' TVD) (Bottom -11,616' MD. 8.000' TVD) MASP = MASPg 5/8" = 1,986 psi MAWP = MAWPg 5/8" = 5,635 psi Page 7 of 13 . . BOPE Proaram Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS LowlHigh Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 95/8 3,937 844 2,500 9.4 (1) 13 5/8" 5M blind ram 250/2,500 (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 Intermediate 7 5,635 1,986 2,500 9.6 (1) 13 5/8" 5M blind ram 250/2,500 ,/ (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 Production Liner 41/2 5,635 1,986 2,500 9.6 (1) 13 5/8" 5M blind ram 250/2,500 ../ (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram / Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-518" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets, and a 13-518" x 5000 psi single pipe ram. The choke manifold will be rated 3-118" 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 convenient 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 Summarv Component Description Casing Hanger Type Casing Head 11" 3M X 9-5/8" Slip Loc W/2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL 1, PR1 10 3/4" x 7" Fluted Mandrel Tubing Head 11" 3M Studded Bottom X 11" 5M Fig Top, W/2, 2-1/16" 5M Studded Outlets, 11" x 4 1/2" Manual Slip U,AA,PSL 1 ,PR1 Adapter Flange 11" 5M X 4-1/16" 5M WI Seal Pocket and 3" H BPV Threads Comments: Directional Proaram Summarv Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N/-S +E/-W VS No. Description (ft) (ft) (°/100') C/100') (°/100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 265.62 0 0 0 2 KOP 250.00 250.00 0 0 0 0 265.62 0 0 0 3 Build up Section 4.00 0 4.00 265.62 4 End of Build 1,852.82 1,538.66 4.00 0 4.00 64.11 265.62 -61.69 -804.64 807.01 5 1st Hold Section 0 0 0 64.11 265.62 6 End of 1st Hold 6,550.00 3,589.47 0 0 0 64.11 265.62 -384.72 -5,018.12 5,032.85 7 1st Drop Section -2.00 0 2.00 265.62 8 End of 1st Drop 8,235.00 4,716.56 -2,00 0 2.00 30.41 265.62 -477.97 -6,234.38 6,252.67 9 ;t'd Hold Section 0 0 0 30.41 265.62 10 End of 2nd Hold 8,435.00 4,889.04 0 0 0 30.41 265.62 -485.71 -6,335.32 6,353.92 11 ;t'd Drop Section -2.00 0 2.00 265.62 12 End of 2nd Drop 9,955.63 6,339.27 -2.00 0 2.00 0.00 265.62 -515.84 -6,728.36 6,748.10 13 TO 11,616.37 8,000.00 0 0 0 0.00 265,62 -515,84 -6,728.36 6,748,10 Comments: Vertical section calculated from a reference azimuth of 265.62° taken from surface location to bottom hole location. Potential Well Interference: Well Susan Dionne #1 Susan Dionne #2 Susan Dionne #3 Distance (ft) 51.49 144.96 155.82 Depth (MD) 922 Surface Surface No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 . 0 1000 2000 300 '2 ~ 0 0 0 ~ J::: 5000 ã. Q) 0 13 6000 1: Q) > Q) 700 :J ¡:: 800 9000 10000 -1000 0 1000 2000 3000 4000 5000 6000 7000 8000 Vertical Section at 265.62° [3000ft/in] Directional Survevina Summary . West(-)/East(+) [2000ft/in] 3000 2000 1000-. c ~ o o o ~ +' :c t: o z -10oìì: J::: "5 o C/) -2000 -3000 Interval MWD Survey Magnetic Multishot Gyro Multishot Comments o - 1,853' X 1,853' - 6,116' X 6,116' - 11,616' X Comments: Drillina Fluid Proaram Summary Interval - TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite 0 1,539 8.6 - 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Sodium Meta Bisulfate Flo-Vis, POlyPac UL, KCI, SafeCarb F&M, 1,539 3,400 9.0 - 9.6 6% Flo-Pro wI Safecarb Asphasol Supreme, Lubetex, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard 90-@ Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 3,400 8,000 6% Flo-Pro wI Safecarb F, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard, Lubetex, EMI 920 Comments: See mud prognosis for details, Sized CaC03 (SafeCarb) will be used to controlleakoff, Page 10 of 13 . . Drillina Fluid Specifications Interval - TVD LSRV From To Density Vis 1 min PV YP Fluid Loss Drill Solids (ft) (ft) (Ib/gal) (sec/qt) (lb.l10Off) (cP) (1b/1 00 tf) (cc) pH (%) 0 1,539 8.6 - 9.4 60 - 100 NIA 25 - 35 NC - 10/12 +1- 9.5 <7 1,539 3,400 9.0 - 9.6 30,000 8 - 12 8 - 10 +1- 9.5 +1- 7,5 3,400 8,000 9.0 - 9.6 30,000 10 - 14 6-8 +1- 9.5 +1- 5 Comments: As a standard practice for tie-back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of fluid. See mud prognosis for details. Solids Control EQuipment c::: 0 Q) Q¡ Q¡ t5 ~ ~ Q) !II .... c::: Q) a :E .s:: !II 0 Q) Q) 0) UI UI UI 'tJ .... .a .... Æ ë3 0) 0) is Q) c::: :s c::: c::: .>C !II ëñ 'tJ 33 :e e !II UI c::: .s:: Q) Q) :::I ð :::I :::I Q) Interval C/) a a :E ü Ü N Comments 0-11,616'MD X X X X Closed Loop System, Full Containment Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) 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 N/A 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 1,853 1,539 12 1/4 0 0 690 1,136 8 75 7 6,116 3,400 81/2 1,300 1,208 620 827 8 35 41/2 11,616 8,000 61/8 5,900 3,306 539 728 NIA 35 Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (Ib/gal) (sx) (f¡3/sx) (f¡3) (ft) (gallsx) Type (cc) (%) 8 hr 24 hr 95/8 Tail Type I Cement 12 453 2.51 1,136 0 11.28 Fresh 812 0 500 Lead Class "G" 12.5 250 2.47 618 1,300 13.79 Fresh 7 Tail Class "G" 15,8 179 1.17 209 5,000 4.99 Fresh 4 1/2 Tail Class "G" 13.5 398 1.83 728 5,900 9.22 Fresh Comments: See cement prognosis for details and spacer specifications. Bit Summary Interval - MD Type Recommended Estimated From To Size WOB Rotating ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ftIhr) 0 1,853 12 1/4 Christensen MX-C1 117 2-5 80 - 300 1,853 6,116 81/2 Christensen HCM 605 M223 Up to 25 Motor 6,116 11,616 61/8 Christensen HCM 505Z M323 Up to 25 Motor Comments: See bit prognosis for additional information, Page 12 of 13 . . Hvdraulics Summary Rig mud pumps available are shown below. Max Press @ Displacement @ Liner ID Stroke 90% WP 95% eff 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 3 National Oil A600PT Intermediate Well 5 8 2,597 2.04 125/255 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 - 1,853 12 1/4 575 1,588 103 5 - 15's MI Virtual Hydraulics 1,853 - 6,116 81/2 525 2,368 217 5 - 15's MI Virtual Hydraulics 6,116-11,616 61/8 270 2,825 296 3 - 24's Actual Data from SD #3 (@ 10,254' MD) Comments: See separate hydraulics calculations, 4" drill pipe used in all hole sections, Formation Intearitv Test Procedure Surface and Intermediate casing shoes will be tested to Leak-oft, 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 drill pipe 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 e Marathon Oil Well Susan Dionne #4 Diverter I Flow line ~ / 116" Automatic I ~I I :::::: ~ \ - I I \ 116" Diverter Line I Knife Valve ../ / . Marathon Oil Well Susan Dionne #4 BOP Stack . I Flow Nipple I -------.. I Flow Line I 13 5/8" 5M Annular Preventer ~ 13 5/8" 5M Double Ram Preventer I Pipe Ram I L -------. 21/16" 5M Manually Operated Valves ¡Blind Ram I ; 31/8" 5M Manually Operated Valve ¡~ []I[JJ1]OI0IIJOI0IIJ ŒÐ ¡Choke I 135/8"5MCross I ~ / rnøIJOI0IIJ Î 13 5/8" 5M Single Ram Preventer I Pipe Ram I 4 3 1/8" 5M Hydraulically Operated Valve .. Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. 135/8" 5M x 13 5/8" 5M Drilling Spool ~113 5/8" 5M Tubing Head Flange . . Marathon Oil Well Susan Dionne #4 Choke Manifold /" ITO Gas Buster IT 0 Blooey Line I Bleed off Line to Shakers ~ ~ ~ ~o8 C g ~ ~ t 13" 5M Valves Î DR2TID[I[@ '\ I 2 9/16" 10M Swaco Hydraulically Operated Choke 3 1/8" 5M Manually Adjustable Choke I From BOP Stack . . Surface Use Plan for Ninilchik Unit· Susan Dionne #4 Surface location: Anticipated at 104' FSL, 1,331' FEL, See, 6, T1S, R13W, S,M. 1) Existing Roads The Sterling Highway will be used for access to the Susan Dionne #4 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 #4, 3) Location of existing wells Well Susan Dionne #4 will be drilled on Susan Dionne pad. A pad drawing is enclosed that shows existing wells and the proposed location of Susan Dionne #4. 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 #4 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Susan Dionne #4 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad, 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194), d) Chemicals Unused chemicals will be returned to the vendors that provided them, Efforts will be . . made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the suñace Susan Dionne #4 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Susan Dionne #4 and the other existing wells on the pad. 10) Suñace 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: /1 !~5"/61 µdbwJ~~~ Willard J, Tank, dvanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 Name and Title: . "'-'-'\\"" -' '~~..9.f. '~{At ~ 1 II _ .L~., ...V.L ~ _ 1_......... '.;.' _ r¡ - -oJ· .-y ... * :'49 IIi ". * I; .......................................; ... '" '" ... "..,.......,.....,',.................... ; ~ ". M. SCOTT McLANE.: ff _ ,/' ''''- ¡~ .J'~"" 4928-S .,:~_ r '~" .' 0/ - /"1 O,~~~;i~~~~(,'- 'h",,-'-'-' ~~ \ ~ ~ ..~ ~~ o DIONNE #3@ DIONNE #1 . AIJRORA COIMJNCATIONS f'RICPER1Y . LEGENDINOTES 1. BASIS OF HORIZONTA~ COORDINATES AND E~EVATIONS IS NGS MONUMENT VB2 AT MI~E POST 127.B OF THE STERLING HIGHWAY. THE E~EVATION OF VB2 IS 2B3.59 FEET (NGVD 29). THE HORIZONTA~ COORDINATES ARE A~ASKA STATE P~ANE NAD 27 ZONE 4 AND ARE BASED DN PUBLISHED COORDINATES FROM THE STATE DF A~ASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES GEOREFERENCING PROJECT PHASE I AND II GPS CONTROL POINTS N 2240672.397 E 21B213.2B9. e NA TURA~ GAS WE~~ SURFACE ~OCA TION TRACT J DIONNE S¡{) NO.2 PAD 7 8 . SUSAN DIONNE #2 ~ o SECTION 6 T1S.. R13W., S.M., AK SUSAN DIONNE #5 SUSAN DIONNE #4 / -= ..J If) ... ;,. o 6 5 PAUl.. AND SUSAN DIOhWE PROPERTY SUSAN DIONNE #4 1331' FEL 104' FSL SECTION 6 T1S., R13W., S.M., AK GRID N: 2236587.738 GRID E: 213102.309 LA TITUDE: 60'06' 46.287"N LONGITUDE: 151'34'21.711 "w ELEV. 135 FT. SUSAN DIONNE #5 1257' FEL 150' FSL SECTION 6 T1S., R13W., S.M., AK GRID N: 2236631.970 GRID E:213176.667 LA TITUDE: 60'06'46. 740"N LONGITUDE: 151'34'20.265"W ELEV. 135 FT. COl15uLting <1 roup Testing SURFACE ~OCATION DIAGRAM No. OA1E BY APP. RE\1S1ONS DATE OF SURVEY:11 4- 04 BOOK NO.: TEL 9C7.2B3.421 e FAX 907.283.3265 PR()..£CT NO.; 04J079 ORAMNO NO.: 043079 1".HX" DRAWN BY: WSW PRo.£CT S1AI)CT. PROCESS Ð.£CT. INSTRUM. ARCH. (~) Marathon MARAlHON Oil Company . Alaska Region ENGINEER APPROVAL SUSAN DIONNE PAD NINILCHIK, ALASKA SUSAN DIONNE NO. 4 & 5 SURFACE LOCATIONS AS-BUlL T BY DA 1E SCALE OWN._ CHKD. 1"·1 APP. APP. 0,,1£ 1I/04/Ø4 DAlE DAlE R<V FILE NO. NINILCHIK R r-----, I I ¡ I ŒNTRIFU6E) 1 UNIT I : 4' X lD" r I I 1 r I I I DlH' I ,-\ I I ...." I I I I.._____J I 1 I L_______ I j I I I I I I I I r --... , , ·,~r' ¡~ I' I , , '-- ~-----i ~-----l~.... I..__.J II : 1 I I I 1 I I r--' " I r I II 1 I I II I . r p; II I I ... t !I:I II 1 ~ I :5 II I I i r C; II I J :1S: ~ u: . !Ii I If¡ . 1 r.!.====.:!__,L-----.J 1 I _" ..." II! \J \J 1 - 1 ICDOKY 3' X 12' 75.. 6 X 5 n- _ 'lID&! 7'511' 6X5 U' I,.¡.:. I ~ ~ m'_-fø- æ m'. , GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ..... ----, 5V 9L A-6IXI PT 5\0/ 9L Ao-600 PT 7S HP 6 X :5 U' 7'5 If' 6X~ U' r . ... ~ . .... I'I.L m . 13'.... ~ e fSiiiï ~ Created by: Planner Date plotted: 5-Nov-2004 Plot reference is SO #4 Ver 2. Ref well path is SD #4 Ver 2. Coordinates are in feet reference SO #4. 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. . MARATHON Oil Company Location: Kenai Peninsula, Alaska Slot: SD#4 Field: Ninilchik Field Well: SD#4 Installation: Susan Dionne Wellbore: SD #4 Ver2 = 0 -500 LO N II E () 0 ( ) ro () en 500 1000 1500 2000 2500 - - CI) CI) 3000 'Iii. - .c - Co 3500 CI) 0 'ii 4000 (.) :e CI) > 4500 CI) ::s II.. I- 5000 I V 5500 6000 6500 7000 7500 8000 8500 Scale 1 em = 500 ft East (feet) -> -8000 -7000 -6000 -5000 -4000 -3000 -2000 -1000 o 1000 {\ 1000 Z ~O 0 ;::¡. (' :T L-- -$- 0 æ: CD v- +0 ~ c9 (J) '%>. ~ () I» -1000 CD (I i:i>&. () ~ 3 " -2000 tn 0 0 ;:: ! 1, Q "&f /:. .91' L-- O¡;r ~ '>" -?Q' (I o....i:i>~, '5ó'?9 ~ KOP 8.00 16.00 DLS: 4.00 deg/1 OOft 32.00 44.00 52.00 ~ 60.00EOC 9 5/8" Casing V 'il' ~',0 (~ ~ &..... ? $=~~ 1, Q~.; Q 0. /:. "&f 0",,-;. ~'" ~"\9~&,,, <J'/:. ~?~ Q ",." 0..... ~ ""& 0. ~ "I' 0....,. ? ~ '&1. IIAKIR HUGI_ INTEQ ~ 7" Casing V Tyonek Tgt End of Hold 60.11 56.11 DLS: 2.00 deg/100ft 48.11 44.11 40.11 36.11 Begin Tangent for Coring End Coring Tangent 26.41 22.41 DLS: 2.00 deg/100ft 14.41 Tyonek T-3 Top Tgt 8.41 4.41 0.41 End of Drop WELL PROFILE DATA Point MD Inc Azi TVD North East deg/100ft V.Sect Tie on 0.00 0.00 265.62 0.00 0.00 0.00 0.00 0.00 KOP 250.00 0.00 265.62 250.00 0.00 0.00 0.00 0.00 End of Build 1852.82 64.11 265.62 1538.66 -61.69 -804.64 4.00 807.01 Target 6335.92 64.11 265.62 3496.00 -370.00 -4826.09 0.00 4640.25 End of Hold 6550.00 64.11 265.62 3589.47 -384.72 -5018.12 0.00 5032.85 End of Drop 8235.00 30.41 265.62 4716.56 -477.97 -6234.38 2.00 6252.67 End of Hold 6435.00 30.41 265.62 4889.04 -485.71 -6335.32 0.00 6353.92 End of Drop 9955.63 0.00 265.62 6339.27 -515.84 -6728.36 2.00 6748.10 T.D. & End of Hold 11616.37 0.00 265.62 8000.00 -515.84 -6728.36 0.00 6748.10 4 1/2" Liner TO Tgt -500 -0 500 Seale 1 em = 250 ft 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 Vertical Section (feet) -> Azimuth 265.62 with reference 0.00 N, 0.00 E from SD #4 . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: SD #4 Ver 2 Wellpath: SD #4 Ver 2 Date Printed: 5-Nov-2004 .i. ..,. INTEQ Well bore Name I Created I Last Revised SD #4 Ver 2 I 28-0ct-2004 I 5-Nov-2004 Well Name I Govemment ID I Last Revised SD#4 I I 28-0ct-2004 Name SD#4 Slot Latitude N60 6 46.2866 North 196.09N East 1339.22W Name Susan Dionne Coord S stem Name AK-4 on NORTH AMERICAN DATUM 1927 datum Name Ninilchik Field Coord S stem Name AK-4 on NORTH AMERICAN DATUM 1927 datum 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 265.62 degrees Bottom hole distance is 6748.10 Feet on azimuth 265.62 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Well bore: SD #4 Ver 2 Wellpath: SD #4 Ver 2 Date Printed: 5-Nov-2004 .i. ...,. INTEQ Wellpath (Grid) Re Jort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ft' 8ectionlftl 0.00 0.00 265.62 0.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 100.00 0.00 265.62 100.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 200.00 0.00 265.62 200.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 250.00 0.00 265.62 250.00 O.OON O.OOE 0.00 0.00 213102.31 2236587.74 350.00 4.00 265.62 349.92 0.27S 3.48W 4.00 3.49 213098.82 2236587.55 450.00 8.00 265.62 449.35 1.078 13.90W 4.00 13.94 213088.39 2236587.00 550.00 12.00 265.62 547.81 2.398 31.21W 4.00 31.30 213071.05 2236586.09 650.00 16.00 265.62 644.82 4.248 55.33W 4.00 55.49 213046.90 2236584.81 750.00 20.00 265.62 739.91 6.608 86.13W 4.00 86.38 213016.05 2236583.19 850.00 24.00 265.62 832.61 9.47S 123.47W 4.00 123.84 212978.65 2236581 .21 950.00 28.00 265.62 922.47 12.828 167.18W 4.00 167.67 212934.88 2236578.90 1050.00 32.00 265.62 1009.05 16.64S 217.02W 4.00 217.66 212884.96 2236576.27 1150.00 36.00 265.62 1091.94 20.91 S 272.76W 4.00 273.56 212829.13 2236573.32 1250.00 40.00 265.62 1170.72 25.628 334.14W 4.00 335.12 212767.66 2236570.08 1350.00 44.00 265.62 1245.03 30.73S 400.84W 4.00 402.02 212700.85 2236566.55 1450.00 48.00 265.62 1314.48 36.238 472.55W 4.00 473.94 212629.04 2236562.77 1550.00 52.00 265.62 1378.74 42.088 548.91W 4.00 550.52 212552.55 2236558.73 1650.00 56.00 265.62 1437.51 48.278 629.56W 4.00 631.41 212471.78 2236554.47 1750.00 60.00 265.62 1490.49 54.758 714.10W 4.00 716.20 212387.11 2236550.00 1850.00 64.00 265.62 1537.43 61.50S 802.12W 4.00 804.4 7 212298.96 2236545.35 1852.82 64.11 265.62 1538.66 61.698 804.64W 4.00 807.01 212296.43 2236545.22 1900.00 64.11 265.62 1559.26 64.93S 846.97W 0.00 849.46 212254.04 2236542.98 2000.00 64.11 265.62 1602.92 71.818 936.67W 0.00 939.42 212164.20 2236538.24 2100.00 64.11 265.62 1646.58 78.698 1026.37W 0.00 1029.39 212074.36 2236533.50 2200.00 64.11 265.62 1690.24 85.578 1116.08W 0.00 1119.35 211984.52 2236528.76 2300.00 64.11 265.62 1733.90 92.44S 1205.78W 0.00 1209.32 211894.68 2236524.02 2400.00 64.11 265.62 1777.56 99.328 1295.48W 0.00 1299.28 211804.84 2236519.28 2500.00 64.11 265.62 1821.22 106.208 1385.18W 0.00 1389.25 211715.00 2236514.54 2600.00 64.11 265.62 1864.88 113.078 1474.89W 0.00 1479.21 211625.16 2236509.79 2700.00 64.11 265.62 1908.54 119.958 1564.59W 0.00 1569.18 211535.32 2236505.05 2800.00 64.11 265.62 1952.20 126.838 1654.29W 0.00 1659.14 211445.48 2236500.31 2900.00 64.11 265.62 1995.86 133.718 1743.99W 0.00 1749.11 211355.64 2236495.57 3000.00 64.11 265.62 2039.52 140.588 1833.69W 0.00 1839.08 211265.80 2236490.83 3100.00 64.11 265.62 2083.18 147.46S 1923.40W 0.00 1929.04 211175.96 2236486.09 3200.00 64.11 265.62 2126.84 154.348 2013.10W 0.00 2019.01 211086.12 2236481.35 3300.00 64.11 265.62 2170.51 161.228 2102.80W 0.00 2108.97 210996.29 2236476.61 3400.00 64.11 265.62 2214.17 168.098 2192.50W 0.00 2198.94 210906.45 2236471.87 3500.00 64.11 265.62 2257.83 174.978 2282.20W 0.00 2288.90 210816.61 2236467.13 3600.00 64.11 265.62 2301.49 181.858 2371.91W 0.00 2378.87 210726.77 2236462.39 3700.00 64.11 265.62 2345.15 188.728 2461.61W 0.00 2468.83 210636.93 2236457.65 3800.00 64.11 265.62 2388.81 195.608 2551.31W 0.00 2558.80 210547.09 2236452.91 3900.00 64.11 265.62 2432.47 202.488 2641.01W 0.00 2648.76 210457.25 2236448.17 4000.00 64.11 265.62 2476.13 209.358 2730.72W 0.00 2738.73 210367.41 2236443.43 4100.00 64.11 265.62 2519.79 216.238 2820.42W 0.00 2828.69 210277.57 2236438.69 4200.00 64.11 265.62 2563.45 223.118 2910.12W 0.00 2918.66 210187.73 2236433.95 4300.00 64.11 265.62 2607.11 229.998 2999.82W 0.00 3008.63 210097.89 2236429.21 4400.00 64.11 265.62 2650.77 236.868 3089.52W 0.00 3098.59 210008.05 2236424.47 4500.00 64.11 265.62 2694.43 243.748 3179.23W 0.00 3188.56 209918.21 2236419.73 4600.00 64.11 265.62 2738.09 250.628 3268.93W 0.00 3278.52 209828.37 2236414.99 4700.00 64.11 265.62 2781.75 257.508 3358.63W 0.00 3368.49 209738.53 2236410.24 4800.00 64.11 265.62 2825.41 264.378 3448.33W 0.00 3458.45 209648.69 2236405.50 All data is in Feet unless otherwise stated Coordinates are from 810t MO's are from Rig and TVO's are from Rig (Oatum #1 156.0ft above Mean 8ea Level) Vertical 8ection is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6748.10 Feet on azimuth 265.62 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: SD #4 Ver 2 Wellpath: SD #4 Ver 2 Date Printed: 5-Nov-2004 rei. -&. INTEQ WellDath (Grid) Re oort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing rdea/100ftl Sectionrftl 4900.00 64.11 265.62 2869.07 271.255 3538.03W 0.00 3548.42 209558.85 2236400.76 5000.00 64.11 265.62 2912.73 278.13S 3627.74W 0.00 3638.38 209469.01 2236396.02 5100.00 64.11 265.62 2956.39 285.005 3717.44W 0.00 3728.35 209379.17 2236391.28 5200.00 64.11 265.62 3000.05 291.885 3807.14W 0.00 3818.31 209289.33 2236386.54 5300.00 64.11 265.62 3043.71 298.765 3896.84W 0.00 3908.28 209199.49 2236381.80 5400.00 64.11 265.62 3087.37 305.63S 3986.55W 0.00 3998.24 209109.65 2236377.06 5500.00 64.11 265.62 3131.03 312.51S 4076.25W 0.00 4088.21 209019.81 2236372.32 5600.00 64.11 265.62 3174.69 319.39S 4165.95W 0.00 4178.18 208929.97 2236367.58 5700.00 64.11 265.62 3218.35 326.27S 4255.65W 0.00 4268.14 208840.13 2236362.84 5800.00 64.11 265.62 3262.01 333.145 4345.35W 0.00 4358.11 208750.29 2236358.10 5900.00 64.11 265.62 3305.67 340.025 4435.06W 0.00 4448.07 208660.45 2236353.36 6000.00 64.11 265.62 3349.33 346.905 4524.76W 0.00 4538.04 208570.61 2236348.62 6100.00 64.11 265.62 3392.99 353.778 4614.46W 0.00 4628.00 208480.77 2236343.88 6200.00 64.11 265.62 3436.66 360.658 4704.16W 0.00 4717.97 208390.93 2236339.14 6300.00 64.11 265.62 3480.32 367.535 4793.87W 0.00 4807.93 208301.09 2236334.40 6335.92 64.11 265.62 3496.00 370.005 4826.09W 0.00 4840.25 208268.82 2236332.69 6400.00 64.11 265.62 3523.98 374.418 4883.57W 0.00 4897.90 208211.26 2236329.66 6500.00 64.11 265.62 3567.64 381.288 4973.27W 0.00 4987.86 208121.42 2236324.92 6550.00 64.11 265.62 3589.4 7 384.725 5018.12W 0.00 5032.85 208076.50 2236322.55 6650.00 62.11 265.62 3634.69 391.548 5107.05W 2.00 5122.03 207987.43 2236317.85 6750.00 60.11 265.62 3682.99 398.235 5194.34W 2.00 5209.58 207900.00 2236313.23 6850.00 58.11 265.62 3734.33 404.795 5279.90W 2.00 5295.40 207814.31 2236308.71 6950.00 56.11 265.62 3788.62 411.215 5363.63W 2.00 5379.37 207730.46 2236304.29 7050.00 54.11 265.62 3845.82 417.485 5445.41W 2.00 5461.39 207648.55 2236299.96 7150.00 52.11 265.62 3905.84 423.608 5525.15W 2.00 5541.37 207568.68 2236295.75 7250.00 50.11 265.62 3968.61 429.555 5602.76W 2.00 5619.20 207490.96 2236291.65 7350.00 48.11 265.62 4034.07 435.325 5678.14W 2.00 5694.80 207415.47 2236287.67 7450.00 46.11 265.62 4102.12 440.92S 5751.19W 2.00 5768.07 207342.31 2236283.81 7550.00 44.11 265.62 4172.69 446.34S 5821.83W 2.00 5838.91 207271.56 2236280.07 7650.00 42.11 265.62 4245.69 451.56S 5889.97W 2.00 5907.25 207203.31 2236276.4 7 7750.00 40.11 265.62 4321.02 456.595 5955.52W 2.00 5973.00 207137.65 2236273.01 7850.00 38.11 265.62 4398.61 461.41S 6018.42W 2.00 6036.08 207074.66 2236269.68 7950.00 36.11 265.62 4478.35 466.025 6078.58W 2.00 6096.42 207014.41 2236266.50 8050.00 34.11 265.62 4560.15 470.42S 6135.93W 2.00 6153.93 206956.98 2236263.47 8150.00 32.11 265.62 4643.90 474.60S 6190.39W 2.00 6208.56 206902.43 2236260.59 8235.00 30.41 265.62 4716.56 477.97S 6234.38W 2.00 6252.67 206858.38 2236258.27 8300.00 30.41 265.62 4772.62 480.48S 6267.18W 0.00 6285.57 206825.52 2236256.54 8400.00 30.41 265.62 4858.86 484.355 6317.66W 0.00 6336.20 206774.97 2236253.87 8435.00 30.41 265.62 4889.04 485.715 6335.32W 0.00 6353.92 206757.27 2236252.94 8535.00 28.41 265.62 4976.15 489.465 6384.29W 2.00 6403.02 206708.24 2236250.35 8635.00 26.41 265.62 5064.91 492.985 6430.19W 2.00 6449.06 206662.26 2236247.92 8735.00 24.41 265.62 5155.23 496.26S 6472.98W 2.00 6491.97 206619.41 2236245.66 8835.00 22.41 265.62 5246.99 499.305 6512.59W 2.00 6531.70 206579.73 2236243.57 8935.00 20.41 265.62 5340.09 502.095 6548.99W 2.00 6568.21 206543.28 2236241.64 9035.00 18.41 265.62 5434.40 504.635 6582.13W 2.00 6601.45 206510.09 2236239.89 9135.00 16.41 265.62 5529.81 506.92S 6611.97W 2.00 6631.37 206480.21 2236238.32 9235.00 14.41 265.62 5626.21 508.95S 6638.46W 2.00 6657.94 206453.67 2236236.92 9335.00 12.41 265.62 5723.48 510.725 6661.59W 2.00 6681.14 206430.51 2236235.69 9435.00 10.41 265.62 5821.49 512.235 6681.32W 2.00 6700.93 206410.75 2236234.65 9535.00 8.41 265.62 5920.14 513.485 6697.63W 2.00 6717.28 206394.42 2236233.79 9635.00 6.41 265.62 6019.30 514.475 6710.49W 2.00 6730.18 206381.53 2236233.11 All data is in Feet unless otherwise stated Coordinates are from 510t MD's are from Rig and TVD's are from Rig (Datum #1 156.0ft above Mean 5ea Level) Vertical Section is from O.OON O.OOE on azimuth 265.62 degrees Bottom hole distance is 6748.10 Feet on azimuth 265.62 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARA THON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: SD #4 Ver 2 Wellpath: SD #4 Ver 2 Date Printed: 5-Nov-2004 8i. .JI.s INTEQ Wellpath (Grid) Re Jort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical Easting Northing Idea/100ft Sectionlftl 9735.00 4.41 265.62 6118.85 515.19S 6719.89W 2.00 6739.61 206372.12 2236232.61 9835.00 2.41 265.62 6218.67 515.65S 6725.83W 2.00 6745.56 206366.17 2236232.30 9935.00 0.41 265.62 6318.63 515.84S 6728.28W 2.00 6748.03 206363.71 2236232.17 9955.63 0.00 265.62 6339.27 515.84S 6728.36W 2.00 6748.10 206363.64 2236232.16 10000.00 0.00 265.62 6383.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10100.00 0.00 265.62 6483.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10200.00 0.00 265.62 6583.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10300.00 0.00 265.62 6683.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10400.00 0.00 265.62 6783.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10500.00 0.00 265.62 6883.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232,16 10600.00 0.00 265.62 6983.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10700.00 0.00 265.62 7083.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10800.00 0.00 265.62 7183.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 10900.00 0.00 265.62 7283.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11000.00 0.00 265.62 7383.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11100.00 0.00 265.62 7483.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11200.00 0.00 265.62 7583.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11300.00 0.00 265.62 7683.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11400.00 0.00 265.62 7783.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11500.00 0.00 265.62 7883.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11600.00 0.00 265.62 7983.63 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 11616.37 0.00 265.62 8000.00 515.84S 6728.36W 0.00 6748.10 206363.64 2236232.16 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 265.62 degrees Bottom hole distance is 6748.10 Feet on azimuth 265.62 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . MARATHON Oil Company,SD #4 Susan Dionne, Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Wellbore: SD #4 Ver 2 Well path: SD #4 Ver 2 Date Printed: 5-Nov-2004 -.. ..,. INTEQ Comments MDfftl TVDfftl Northfftl Eastfftl Comment 250.00 250.00 O.OON O.OOE KOP 1852.82 1538.66 61.69S 804.64W EOC 6335.92 3496.00 370.00S 4826.09W Tvonek Tat 6550.00 3589.47 384.72S 5018.12W End of Hold 8235.00 4716.56 477.97S 6234.38W Beain Tanaent for Corina 8435.00 4889.04 485.71S 6335.32W End Corina Tanaent 9347.82 5736.00 510.93S 6664.31W Tvonek T-3 Too Tat 9955.63 6339.27 515.84S 6728.36W End of Droo 11616.37 8000.00 515.84S 6728.36W TDTat Hole Sections Diameter Start Start Start Start End End End Start Wellbore finl MDfft1 TVDfftl Northfftl Eastfftl MDfftl TVDfftl Northfftl Eastfftl 12 1/4 0.00 0.00 O.OON O.OOE 1853.00 1538.74 61.70S 804.81W SD #4 Ver 2 81/2 1853.00 1538.74 61.70S 804.81W 6116.05 3400.00 354.88S 4628.85W SD #4 Ver 2 61/8 6116.05 3400.00 354.88S 4628.85W 11616.37 8000.00 515.84S 6728.36W SD #4 Ver 2 Casinas Name Top Top Top Top Shoe Shoe Shoe Shoe Wellbore MDfftl TVDfftl Northfftl Eastfftl MDfftl TVDfftl Northfftl Eastfftl 9 5/8" Casino 0.00 0.00 O.OON O.OOE 1853.00 1538.74 61.70S 804.81W SD #4 Ver 2 7" Casina 0.00 0.00 O.OON O.OOE 6116.05 3400.00 354.88S 4628.85W SD #4 Ver 2 4 1/2" Liner 0.00 0.00 O.OON O.OOE 11616.37 8000.00 515.84S 6728.36W SD #4 Ver 2 Taraets Name Northfftl Eastfftl TVDfftl Latitude Lonaitude Eastino Norhtino Last Revised SD#4 TD - 11/3/04 516.27S 6732.14W 8000.00 N60 6 41.18 W151 3634.53 206359.85 2236231.82 10-Feb-2003 SD#4 Tyonek T-3 511.37S 6668.09W 5736.00 N60 6 41.23 W151 3633.27 206423.99 2236235.20 10-Feb-2003 TOD - 11/3/04 SD#4 Tyonek - 370.43S 4829.87W 3496.00 N60 6 42.62 W151 3557.00 208265.03 2236332.35 10-Feb-2003 11/3/04 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 265.62 degrees Bottom hole distance is 6748.10 Feet on azimuth 265.62 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated 0 -100 -200 a= -300 ( ) -400 rn (.) (f) MARATHON Oil Company Field: Ninilchik Field Installation: Susan Dionne Seale 1 em = 50 ft -2000 -1900 -1800 Well: SD #4 Well bore: SD #4 -1400 -1300 -1200 East (feet) -> -1100 -1000 -900 -800 -600 -1700 -1600 -1500 1000 900 ~ <;J" f:J -~ 800 700 600 500 ^ 400 , - ... CI> .æ 300 - J:: 1::: 200 0 Z 100 r;:," ,"v'1) '-- ------ "v""" -- s::," __ ~ rf5 -, s::," "os - --~ [sOli,] {p" -\" <;J" "rßJ ,," ", ,,'::\ r;:," " ,,'1) s::, \,," fb(j '--, "I:! 0"" " "cs ~" '-, "" 10"10 -,_ - q,os ~,\(j ~,,~ '- _ -J Ý.¡"'''J''' 10 -, Qj q,"3 ,,(j s::," 10 ",_ q, <oOS :,\(j <;J" 10 , <0 <00 ~(j ,," s::, ----,__,<0 <0" ,\q,(j ,\,,"0"" "J" 10 ','\ ," ,\"3 '\ ,,(j "'-""'-- ----",",- "J" ,,'8 -"""- -~------+--- ___ _ r--~ ~--------------~-------------~----~'º <2,.>; <2000 DO 00 7(9, 1/0 ,," <;J" 10 <0'1) <o(j 'J:,(j "J" ,," -- ~,0'Ö <:f r;:," _ 0'1) <;J" 10 --~-- _ 0(j <o(j "J" ,_ IX ~ -700 ,," ,::\ -'....., "J" ,,'Ö --'", "J" ,,0 "J" ~ -'''--., """- s::," <;J <oOS :\(j s::," _, <0 <00 -- _---T ------ ----<- ------- 7.>- 00 76) DO 76: DO -2000 -1900 -1800 -1700 -1600 -1500 -1400 -1300 -1200 Seéd¡,; 1 em = 50 ft -600 -500 o -400 -300 -200 -100 ~ \7 \ \ \ \ \ \ \ \ 1500 \ \ \\ \ \ 1400 \ \ \ \ \ 1300 \ \ \ \1200 \ \ 1100 7';7; 00 \ \ \ \ 1000 ,," \\900 ,,'1) ,," \ ,," s::," \800 -',+- ,~~Ç,J ~Ç) \ 700 Qj <;J .~ ' -- __,<o(j ,," 500 -," <0"" " "v(j - - 200 t)<"" r;:," <;J" ,," <;:) "J~~ ~,tß5+~:,,"o(j~~ ---p--~-'-~-~- +-$- ---,--' ----+----;---7,.>; 712 .900 <1'00->00 ó'ojþo 7û! i'12 00 DO 1/0 D <;J" ,,"3 - -- --~ -'-+.. -500 -100 o 100 1000 900 800 700 600 500 400 ^ . Z 300 0 ;::¡. :::r - 200 at (1) 100 0 -100 -200 (f) 0 ill ¡¡¡ -300 ->. 0 3 II -400 Ü1 0 MARATHON Oil C Field: Installation: Ninilchik Field Susan Dionne Well: Well bore: SD#4 Created by: Planner "~"'-~'-~--~-l Date plotted : 5~Nov~2004 Plot reference is SO #4 Ver 2. Ref well path is SD #4 Ver 2. Coordinates are in feet reference SD #4. True Vertical Depths are reference Rig Datum, Measured Depths are reference Rig Datum Rig Datum: Datum #1 Rig Datum to Mean Sea Leve!; 156.00 ft Plot North is aligned to TRUE North. ._.~._.~._..._m-' 250 TRUE NORTH o 10 20 30 320 40 310 300 60 290 280 80 270 90 260 240 120 230 220 210 150 200 160 190 180 170 Normal Plane Travelling Cylinder - Feet All depths shown are . . MARATHON Oil Company SD #4 Ver 2, SD #4 Ver 2 SD #4, Susan Dionne CLEARANCE LISTING Page 1 Date Printed: 5-Nov-2004 Ninilchik Field, Kenai Peninsula, Alaska ... -.:t- 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 sizelCasings 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 Wellbore Name I Created I Last Revised SD #4 Ver 2 I 28-0ct-2004 I 5-Nov-2004 Well Name I Govemment ID I Last Revised SD#4 I I 28-0ct-2004 Name SD#4 Slot Latitude N60 6 46.2866 North 196.09N East 1339.22W Installation Name I Eastina I Northina I Coord Svstem Name T North Alionment Susan Dionne I 214436.4990 I 2236359.9870 I AK-4 on NORTH AMERICAN DATUM 1927 datumT True Field Name I Eastino I Northina I Coord Svstem Name T North Alionment Ninilchik Field I 226657.8482 I 2252005.1188 I AK-4 on NORTH AMERICAN DATUM 1927 datumT True Clearance SummarY Offset Offset Offset Offset Minimum MD[ft] Diverging Ellipse Ellipse Clearance Clearance Well Name Wellbore Slot Structure Distance From[ft] Separation MD[ft] Factor MD[ft] Iftl Iftl SD#1 SD#1 SD#1 Susan Dionne 51.49 922.07 922.07 34.64 922.07 3.04 935.04 SD#2 SD#2 SD#2 Susan Dionne 144.96 0.00 0.00 144.66 131.23 39.60 1377.95 SD#3 SD#3 SD#3 Susan Dionne 155.82 0.00 0.00 155.60 65.62 12.56 2181.76 Surve Name Planned Tool Pro Surve Tool Navi Trak Error Model Standard 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 . . MARATHON Oil Company SD #4 Ver 2, SD #4 Ver 2 SD #4, Susan Dionne CLEARANCE LISTING Page 2 Date Printed: 5-Nov-2004 Ninilchik Field, Kenai Peninsula, Alaska -.. ..,. INTEQ Clearance Data Reference Reference Reference Reference Offset Well Offset Offset Offset Offset Angle Closest Ellipse MO[ft] TVD[ft] North[ft] East[ft] MO[ft] TVD[ft] North[ft] East[ft] From Approach 8eparation Highside Distance [ft] [deal rftl 0.00 0.00 O.OON O.OOE 80#2 0.00 0.00 115.23N 87.95W -37.4 144.96 144.96 0.00 0.00 O.OON O.OOE SO #2 0.00 0.00 115.23N 87.95W -37.4 144.96 144.96 16.40 16.40 O.OON O.OOE 80#2 16.28 16.28 115.26N 87.94W -37.3 144.97 144.81 100.00 100.00 O.OON O.OOE SD#2 99.63 99.63 115.50N 87.83W -37.3 145.10 144.70 131.23 131.23 O.OON O.OOE 80#2 130.87 130.87 115.65N 87.76W -37.2 145.18 144.66 200.00 200.00 O.OON O.OOE SO #2 197.87 197.86 116.26N 87.62W -37.0 145.60 144.84 250.00 250.00 O.OON O.OOE SO#2 243.38 243.34 117.72N 87.87W -36.7 147.05 146.12 350.00 349.92 0.27S 3.48W 80#2 332.93 332.54 125.25N 89.72W 59.6 153.28 152.04 450.00 449.35 1.07S 13.90W SO#2 427.91 426.64 137.73N 92.71W 64.0 161.22 159.59 550.00 547.81 2.398 31.21W SO#2 513.00 510.23 153.08N 96.57W 69.5 172.79 170.68 650.00 644.82 4.24S 55.33W SO #2 599.32 593.81 173.34N 103.83W 75.3 191.03 188.31 750.00 739.91 6.60S 86.13W SO#2 683.28 674.16 195.70N 113.45W 80.7 214.47 210.97 850.00 832.61 9.47S 123.47W SO#2 759.07 745.03 219.97N 124.73W 84.8 245.59 241.15 950.00 922.47 12.828 167.18W SO #2 834.63 813.65 248.03N 139.31W 88.0 284.01 278.41 1050.00 1009.05 16.648 217.02W 80#2 905.65 876.00 277.63N 155.94W 90.0 328.68 321.74 1150.00 1091.94 20.91 S 272.76W 80#2 979.08 938.44 311.08N 175.28W 91.6 378.53 370.03 1250.00 1170.73 25.628 334.14W 80#2 1054.50 1001.37 346.95N 196.28W 92.9 431.85 421.57 1350.00 1245.02 30.738 400.84W 80#2 1126.74 1060.93 382.17N 217.05W 93.8 488.01 475.83 1377.95 1264.94 32.238 420.39W 80#2 1144.52 1075.37 391.07N 222.34W 93.9 504.33 491.59 Well 80#2 Wellbore 80#2 8urve Name MWO <0-11094> All data is in Feet unless otherwise stated Coordinates are from 810t and TVO's are from Rig ( Oatum #1 156.0ft above Mean 8ea Level) Reference MO's are from Rig, Offset MO'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 SD #4 Ver 2, SD #4 Ver 2 SD #4, Susan Dionne CLEARANCE LISTING Page 3 Date Printed: 5-Nov-2004 Ninilchik Field, Kenai Peninsula, Alaska .i. ...,.. INTEQ Clearance Data Reference Reference Reference Reference Offset Well Offset Offset Offset Offset Angle Closest Ellipse MD[ft] TVD[ft] North[ft] East[ft] MD[ft] TVD[ft] North[ft] East[ft] From Approach Separation Highside Distance [ft] [deal Iftl 0.00 0.00 O.OON O.OOE 80#3 0.00 0.00 85.87N 130.03W -56.6 155.82 155.82 0.00 0.00 O.OON O.OOE SO#3 0.00 0.00 85.87N 130.03W -56.6 155.82 155.82 16.40 16.40 O.OON O.OOE 8D#3 16.05 16.05 85.90N 130.05W -56.6 155.86 155.67 65.62 65.62 O.OON O.OOE 8D#3 65.27 65.26 85.98N 130.13W -56.5 155.97 155.60 100.00 100.00 O.OON O.OOE 80#3 98.94 98.94 86.12N 130.27W -56.5 156.17 155.71 200.00 200.00 O.OON O.OOE 80#3 197.75 197.74 86.74N 130.87W -56.5 157.02 156.19 250.00 250.00 O.OON O.OOE 80#3 246.54 246.53 87.34N 131.48W -56.4 157.89 156.87 350.00 349.92 0.278 3.48W 80#3 340.06 339.98 89.69N 134.20W 38.8 158.99 157.65 450.00 449.35 1.078 13.90W 8D#3 431.23 430.77 94.80N 140.35W 41.2 159.77 158.01 550.00 547.81 2.398 31.21 W 8D#3 517.33 515.84 102.99N 150.71W 44.7 162.51 160.23 650.00 644.82 4.248 55.33W SO #3 605.27 601.48 114.28N 167.06W 49.0 168.55 165.63 750.00 739.91 6.608 86.13W SO #3 692.60 684.80 127.75N 189.37W 53.3 178.17 174.43 850.00 832.61 9.478 123.47W 80#3 780.81 766.75 142.34N 218.50W 57.1 190.82 186.01 950.00 922.47 12.828 167.18W 8D#3 870.29 847.30 156.79N 254.62W 60.2 205.10 198.93 1050.00 1009.05 16.648 217.02W 8D#3 959.03 924.43 172.1 ON 295.71W 63.0 221.31 213.49 1150.00 1091.94 20.918 272. 76W 80#3 1051.79 1003.43 189.62N 341.06W 66.4 238.37 228.53 1250.00 1170.73 25.628 334.14W 8D#3 1142.55 1079.67 208.47N 386.54W 70.3 256.58 244.40 1350.00 1245.02 30.738 400.84W 8D#3 1235.61 1157.13 228.57N 434.03W 74.9 275.79 260.93 1450.00 1314.48 36.238 472.55W 8D#3 1324.90 1229.45 247.78N 482.73W 79.0 296.64 278.87 1550.00 1378.74 42.088 548.91W 80#3 1412.01 1297.15 267.51 N 533.86W 82.5 320.52 299.67 1650.00 1437.51 48.278 629.56W 8D#3 1497.00 1360.80 287.89N 586.36W 85.7 347.49 323.46 1750.00 1490.49 54.75S 714.10W 8D#3 1583.55 1422.71 309.93N 642.65W 88.5 377.74 350.33 1850.00 1537.43 61.508 802.12W SO#3 1670.46 1481.87 332.90N 702.02W 91.0 410.67 379.77 1852.82 1538.66 61.698 804.64W 8D#3 1672.99 1483.54 333.58N 703.80W 91.1 411.64 380.64 1900.00 1559.26 64.938 846.97W SD#3 1711.50 1508.55 344.18N 731.09W 92.7 428.22 395.62 2000.00 1602.92 71.818 936.67W SD#3 1796.04 1560.50 368.83N 793.04W 95.2 465.40 429.34 2100.00 1646.58 78.698 1026.37W 8D#3 1882.42 1608.78 395.58N 859.46W 96.8 504.20 464.56 2181.76 1682.28 84.318 1099.71W 8D#3 1955.28 1647.06 419.00N 916.87W 97.6 536.65 493.92 Well SO#3 Wellbore 80#3 Surve Name MWO <0-10255> Error Model Standard All data is in Feet unless otherwise stated Coordinates are from 810t and TVD's are from Rig (Oatum #1 156.0ft above Mean 8ea Level) Reference MO's are from Rig, Offset MO's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Saker Hughes Incorporated . . MARATHON Oil Company SD #4 Ver 2, SD #4 Ver 2 SD #4, Susan Dionne CLEARANCE LISTING Page 4 Date Printed: 5-Nov-2004 Ninilchik Field, Kenai Peninsula, Alaska _I. ..,. INTEQ Clearance Data Reference Reference Reference Reference Offset Well Offset Offset Offset Offset Angle Closest Ellipse MD[ft] TVD[ft] North[ft] East[ft] MO[ft] TVD[ft] North[ft] East[ft] From Approach Separation Highside Distance [ft] ideol rftl 0.00 0.00 O.OON O.OOE SD#1 0.00 3.00 39.51 N 158.29W -76.0 163.17 163.17 16.40 16.40 O.OON O.OOE 8D#1 13.40 16.40 39.51 N 158.29W -76.0 163.15 161 .43 100.00 100.00 O.OON O.OOE 80#1 97.00 100.00 39.51 N 158.29W -76.0 163.15 158.56 200.00 200.00 O.OON O.OOE 80#1 197.00 200.00 39.51 N 158.29W -76.0 163.15 156.48 250.00 250.00 O.OON O.OOE 8D#1 247.00 250.00 39.51 N 158.29W -76.0 163.15 155.63 350.00 349.92 0.278 3.48W 80#1 346.92 349.92 39.51 N 158.29W 18.8 159.84 150.89 450.00 449.35 1.078 13.90W 8D#1 446.35 449.35 39.51 N 158.29W 20.3 149.98 139.71 550.00 547.81 2.398 31.21 W SD#1 544.81 547.81 39.51 N 158.29W 23.1 133.81 122.28 650.00 644.82 4.248 55.33W 8D#1 641.82 644.82 39.51 N 158.29W 28.3 111.87 99.13 750.00 739.91 6.60S 86.13W SD#1 736.91 739.91 39.51 N 158.29W 38.7 85.63 71.64 850.00 832.61 9.47S 123.47W SD#1 829.61 832.61 39.51 N 158.29W 61.2 60.09 44.58 922.07 897.68 11.83S 154.36W 8D#1 894.68 897.68 39.51 N 158.29W 90.0 51.49 34.64 935.04 909.22 12.298 160.24W 80#1 906.22 909.22 39.51 N 158.29W 95.8 51.83 34.80 950.00 922.47 12.82S 167.18W SD#1 919.47 922.47 39.51 N 158.29W 102.4 53.07 35.87 1050.00 1009.05 16.648 217.02W SO#1 1006.05 1009.05 39.51 N 158.29W 136.0 81.25 63.32 1150.00 1091.94 20.918 272.76W 80#1 1088.94 1091.94 39.51 N 158.29W 151.8 129.44 110.85 1250.00 1170.73 25.628 334.14W 80#1 1167.72 1170.73 39.51 N 158.29W 159.6 187.52 168.15 1350.00 1245.02 30.738 400.84W 80#1 1242.03 1245.02 39.51 N 158.29W 163.8 252.51 232.34 1450.00 1314.48 36.238 472.55W 80#1 1311.48 1314.48 39.51 N 158.29W 166.4 323.25 302.29 1550.00 1378.74 42.088 548.91W 80#1 1375.74 1378.74 39.51 N 158.29W 168.1 399.05 377.33 1650.00 1437.51 48.278 629.56W 8D#1 1434.51 1437.51 39.51 N 158.29W 169.1 479.37 456.94 Well 80#1 Wellbore 80#1 Surve Name M88 <2498-14931> Error Model Standard All data is in Feet unless otherwise stated Coordinates are from 810t and TVO's are from Rig ( Datum #1 156.0ft above Mean 8ea Level) Reference MO's are from Rig, Offset MO's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (10) Prepared by Baker Hughes Incorporated Marathon Oil Company Well Name: Susan Dionne #4 Rev. Location: Kenai, Alaska. Prepared MARAT ON OIL COMPANY Well Susan Dionne #4 Kenai Peninsula, Alaska Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Win Tank November . . _.FE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 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 #4 Well to be drilled this year. The following is a brief synopsis of the program. Overview: SD #4 is a development well targeting the Tyonek formation at the Susan Dionne field. A GellGelex 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 4-1/2" liner cemented in place. Surface Interval: A standard ftesh water GellGelex 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 SD #2 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 @ 5 - 7 cc's API for this interval. Completion: The completion will consist of a 4-112" liner cemented in place. This will be tied back to the surface with a 4- 1/2" completion string. Corrosion control will be added to the 6% KCl brine that will remain in the 4-112" x 7" annulus prior to tie-back. Tony Tykalsky Project Engineer M - I Drilling Fluids Reference Well: Susan Dionne #2 & 3 NOTE: This pr02ram is provided as a 2uide only. Well conditions will always dictate fluid properties reQuired. ~.IÆ ~ - .IFE m ~ ~ IIIÆ . . Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. Our goal for SD #4 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 four years of centrifuge van opera.tions Our goal for Susan Dionne #4 is to drill the well at a. fluid cost of less than $18.70 per foot with a total volume of fluid used less than 4590 barrels. Use of the MI Swaco centrifuge van for the last four years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $800,000. With continued usage of our equipment, we expect to provide more savings to you during future operations. ~.IFE ~ . . _IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Interval (ft) Bånchmark 4 Benchmark 1 Benchmark 2 Fluid cost per foot Solids Removal Volume Usage 0-1853' < $3.83 ft < 1345 bb1s 1853 - 6116' < $25.71 ft < 1732 bb1s 6116 - 11616' < $18.28 ft < 1413 bb1s Total Project Targets for Drilling Interval Avg. < $18.70 < $0.23 1b o Spills from Centrifuge Van Operation Max. < 4590 bb1s ~.IFE ~ . . .FE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 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" 1853' 1539' Gel/Gelex Spud 8.6 - 9.4 5 $7,103 Mud Screens 150/180 mesh Desilter Centrifuge Van 7" 8-1/2" 6116' 3400' Flo-Pro 9.0 - 9.6 10 $109,604 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 4-1/2" 6-1/8" 11616' 8000' Flo-Pro 9.0 - 9.6 7 $100,528 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 4-1/2" 6-1/8" Completion 11616' 8000' 6% KCl 8.55 2 $3,314 ~ 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 running casing for all intervals. ~ Cost does not include any considerations for whole mud losses. ~ Cost includes 3 % Lubetex concentration for intermediate and production interval. ~.IFE ~ . . Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Product Usage Summary M-I Bar 0 87 141 0 228 1.36 M-I Gel 269 0 0 0 269 1.74 Gelex 17 0 0 0 17 0.11 Soda Ash 9 12 10 0 31 0.22 Caustic Soda 13 17 14 0 44 0.53 Conqor 404 0 4 5 0 9 4.82 Sodium Meta 8 10 8 1 27 0.82 Bisulfate Bicarb 13 12 10 0 35 0.29 Conqor 303A 0 0 0 1 1 0.25 FloVis 0 139 113 0 252 23.08 Desco CF 13 0 0 0 13 0.28 DualFlo 0 0 113 0 113 4.62 Polypac UL 8 69 0 0 77 5.61 Greencide 25G 0 0 2 0 2 1.53 Bioban BP Plus 0 69 57 0 126 1.29 KCI 0 728 593 105 1426 7.97 Klagard 0 20 16 0 36 11.63 Safecarb 0 346 283 0 629 5.12 Lubetex 0 39 32 0 71 24.23 EMI920 0 0 8 0 8 3.41 Defoam X 0 19 8 0 27 1.11 Engineer Service 5 10 7 2 24 ~ _.FE Œf~ . . ~UÆ Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments SO #3 12.25" 254 8.6 15 38 NIC Spud in, drlg ahead 1370 9.1 16 30 14 Orlg ahead 1875 9.1 15 29 13.8 Trip for motor, drlg ahead 1972 9.2 11 14 14.8 Orlg to TO, 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 Orlg 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 Orlg 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 Orlg ahead no problems 7745 9.55 13 29 5.9 Orlg ahead, log to 6879' 8445 9.6 14 30 6.2 Orlg 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 Orlg ahead, trip for washout, RIH 10100 9.75 12 22 5.7 Orlg ahead 10254 9.7 12 22 6.2 Orlg to TO, log hole, fish for logging tool 10254 9.7 10 14 7.2 Run liner, briefly stuck, reduce PPG. run liner & cement same SO #2 12.25" 618 8.85 16 26 15.2 Spud in, trip for MWO 1723 9.4 16 23 7.8 Drlg ahead, no hole problems 1927 9.45 13 14 8.2 Orlg to TD, run surface casing, cement same 8.5" 3154 9.25 12 26 8 Drlg out, disp to new mud, drlg ahead 4924 9.4 11 22 8.2 Orlg ahead, short trip OK, drlg ahead 5692 9.55 15 23 7.2 Orlg to csg point, trip out tight in spots. (5100 - 4558') 5692 9.75 12 23 7.6 Long hole on O.P., RIU & run 7" casing 7" 5987 9 10 18 6.2 Orlg out, displace to new mud, LOT 18.8 PPG, drlg ahead 6362 9 12 23 4.8 Orlg ahead add 5% lubricant for sliding/torque 6696 9.2 12 23 4 Orlg ahead, short trip OK, drlg ahead 7216 9.15 13 24 3.8 Drlg ahead, centrifuge mud for weight control 7968 9.25 13 24 3.6 Orlg ahead, short trip OK, drlg ahed 8517 9.2 14 27 3.8 Drlg ahead, run centrifuge for PPG 9253 9.35 12 30 4.4 Orlg ahed, Ok 9573 9.4 13 33 4.4 Trip for BHA, OK, drlg ahead 9967 9.5 12 33 4.4 Orlg ahead 10657 9.5 12 32 4 Orlg ahead, POH for washout 11094 9.7 13 32 4.2 Replace joint, drlg to TO, wiper trip to shoe, OK, 11094 9.85 14 31 4.4 Circ hole clean, Log hole on OP. 11094 9.7 13 30 4.8 Condition hole, centrifuge fluid down to 9.7 PPG 11094 9.7 13 30 5 Run 4··1/2" tubing, stuck @ 8000', pump Lubetex pill, free string, run to TO, cement casing, (possible diff. sticking) r:zj _.FE ~~ . . lalFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 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 fonnulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intennediate and production intervals. => FLUID LOSS CONTROL - In the intennediate 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 in the 5 - 7 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 - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm => 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 detennining 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. rnJ _.FE rmr~ . . _IÆ Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Interval Summary - 12-1/4" hole ;' 0-1853' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel 1 Gelex 1 Soda Ash 1 Caustic Soda 1 MI Bar 1 PolyPac Supreme UL 1 Sodium Meta Bisulfate Solids Control Shale Shakers 1 Desilter 1 Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./t OOft2) (mI/30min) (%) 0-1853' 8.6 - 9.4 60 - 100 25 - 35 NC -10/12 +1- 9.5 <7% y Treat drill water with Soda Ash to reduce hardness. y Build spud mud with 20 - 25 PPB M-I Gel to +1- 100 sec.qt funnel viscosity. y Lower funnel viscosity to +1- 60 after gravel zone has been drilled. y Add Gelex as needed to maintain sufficient viscosity for hole cleaning. y Increase funnel viscosity if fill on connections begins to occur. y Reduce fluid loss with additions ofPolypac Supreme UL prior to running surface casing. y Add 2 - 5 PPB of M - I Seal Fine to mud system if seepage losses becomes a problem.. y Condition mud prior to cementing casing to reduce yield point and gel strengths. y Estimated volume usage for interval- 1345 barrels. y Estimated haul off volume - 2160 barrels. ~ _.FE ~~ . . -- ~IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Drilling Fluid System Flo-Pro Fluid 1853 - 6116' Key Products Flo- Vis / PolyPac UL / KCl/ SafeCarb F & M, Asphasol Supreme / Lubetex / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Klagard 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 IntervalD)"iUip.g Fluid Prop~rties Depth Mud Plastic LSRV Interval Weight Viscosity 1 min (ft) (ppg) (cp.) (cps) 1853 - 6116' 9.0- 9.6 8 - 12 20 - 30,000 Drill Solids (%) +/- 7.5 % API Fluid Loss (mIl30min) 8 - 10 pH +/- 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 offtest. >- Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. >- Maintain Conqor 404 concentration of 2000+ ppm. >- If running coals become a problem, increase Asphasol Supreme additions. >- Estimated volume usage for interval- 1732 barrels. >- Estimated haul off volume - 2393 barrels. >- Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~ ..FE Œr~ . . elÆ Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Intermediate Interval Fluid Formula 8-1/2" Interval from 1853 - 61 16' Input I !Description Susan Dionne #4 f\ì1ud Weight 9.0 +/- Prehydrated Gel .. No Weight MåteriaL.(:ode MI Bar PrehYdrated Gel Conc.. WeiahfMaterialSG 4.2 KCIWt% < 6 Output - 1 bbl I Order of Products Concentration ..... ,. Addition Field,lb Lab,gm F.i~lêtf;bb . Ii;¡~b, rnl 1ft!!!!a",,.,"" .. 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 BridQinQ AQent 9 KlaQard 5.00 5.00 0.045 5,00 Inhibition 10 Sodium Meta Bisulfate 0.50 0.50 0.002 0.50 Oxygen Scavenger If bit balling becomes a problem, add the following: 11 D-D CWT 1.00 1.00 0.003 I 1,00 Reduce BHA BallinQ If toraue becomes a problem, or sliding is difficult, add up to 5% of the followina: 12 Lubetex 14.00 14,00 0.041 14.43 Lubricity T otéll 399 399 1.000 350 Calculated Mud VV~ight 9.05 Estimated Mdlume Us:ác:(ø; 1732 Barrels Total<Chlol"ide 29600 r:ziSIFE .~ . . - _IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Interval Summary - 6-1/8" hole Drilling Fluid System Flo-Pro Fluid 6116 - 11616' Key Products Flo-Vis / DualFlo / KCI/ Greencide 25G / SafeCarb F/ MI Bar / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / lagard / Lubetex / EMI 920 Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions, stuck pipe. nterval Drilling Fluid Properties Depth Mud Plastic LSRV Interval Weight Viscosity 1 min (ft) (ppg) (cp.) (cps) 6116 - 11616' 9.0 - 9.6 10 - 14 20 - 30,000 API Fluid Loss (ml/30min) 6-8 pH Drill Solids (%) +/- 5% +/- 9.5 ~ Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. ~ NOTE: Initial formula does not call for Lubricant. However lubricant additions should be monitored for there effectiveness with the enclosed data sheet. ~ 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 - 1413 barrels. ~ Estimated haul off volume - 3025 barrels. ~ Condition mud prior to running 4-112" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~ ..FE ~~ . . - _IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Production Interval Fluid Formula From 61 16 - 1 1616' Input DescriDtion Susan Dionne #4 Mud WeÎaht 9.0 +1- Prehydrated Gel No Weíaht. MaterialOode SafeCarb Prehydra.ted .Gel Conc. WeidhtMaterià.I$G 2,8 KCI Chloride Weiaht MaterÎalPrìce 0.35 KCI wt% 6 Sea Water No KCI Price 0.2516 Sea Salt No NaCI Chloride M-IGèl NaCI Wt% M-I Gel Price ...... NaCI Price Output - 1 bbl I Order of Products Concentration Volume » Addition Field,lb Lab, am Field,ÞPI Lab..mt Üsaåe 1 Water 325,19 325.19 0,929 325,19 2 Soda Ash 0.25 0,25 0,000 0.10 Reduce Hardness 3 FloVis Plus 1.50 1,50 0.040 1.00 Viscosity 4 DualFlo 4.00 4,00 0.080 2.68 Fluid Loss Control 5 SafeCarb Fine 10.00 10.00 0.010 3.80 Bridaina AQent 6 Potassium Chloride 20.76 20.76 0.025 8,68 Inhibition 7 Klaaard 5.00 5.00 0,100 5,00 Inhibition 8 Greencide 25G 0.25 0.25 0.001 0.30 Biocide 9 CONQOR 404 2,00 2.00 0.004 1.43 Corrosion Control 10 Caustic Soda 0.50 0,50 0,001 0.23 DH Control 11 Sodium Meta Bisulfate 0.50 0,50 0.020 0.50 Oxyaen Scavenaer NOTE: Monitor Lubricant additions for their effectiveness usinQ enclosed data sheet. 12a Lubetex (1 %) 3,50 3.50 0.021 I 3.50 Lubricity 12b EMI - 920 (0.5%) 1.75 1.75 0,010 1.75 Metal to Metal Lubricant If Bit ballinc becomes a Droblem, add the followinQ 13 D-D 4.00 4.00 0.011 I 4,00 Reduce BHA BallinQ If sloughing coals become a Droblem add 2 - 4 ppb of the following 14 ASDhasol SUDreme 2.00 2.00 0.004 I 1.33 Well bore Stability Mix fluid in the order listed above. Wait for 1 -2 circulations before adding Sodium Meta Bisulfate to the system. Alternate additions of Greencide 25G and Sodium Meta Bisulfate 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 Total 380.1 380,1 EstimateØ~ôJume U$~Öe 1413 Barrels Calculated Mud Welaht 9.050 Total Chloride 29600 r:zj ..FE ~ - ~IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Lubricant Testing Data Status After drilling out intermediate casing Sequence Date Depth Time Rotating Rotating Up Down of day Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) with old mud I I I I I I I I I I I Depth Time Rotating Rotating Up Down of day Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) with new mud I I I I I I I % Depth of Start time Surface to Rotating Rotating Up Down Product Addition addition of addition Surface (min.) Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) EMI 920 I I I I I I I I I I I I I I % Depth of Start time Surface to Rotating Rotating Up Down 2nd addition? Addition addition of addition Surface (min.) Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) EMI 920 I I I I I I I I I I I I I I % Depth of Start time Surface to Rotating Rotating Up Down Product Addition addition of addition Surface (min,) Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) Lubetex I I I I I I I I I I I I % Depth of Start time Surface to Rotating Rotating Up Down 2nd addition? Addition addition of addition Surface (min.) Weight (Ibs) Torque (fVlbs) Weight (Ibs) Weight (Ibs) Lubetex I I I I I I I I I I I I I I ~.IFE ~ Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Corrosion Control Additive in Casing x Tubing Well Susan Dionne #4 Volumes: 4·1/2" Tubing Annular Volume Casing x Tubing 3.992 x 5916 ft Total Packer @ 5916 ft MD Total 6.276 @ 6116 ft MD 4.50 @ 11616 ft MD Treatment Procedures. fluid is conditioned, build at 1. After the 4-1/2" tubing is run and 2. Displace mud out of well with the 6% KCL brine. Add 1 drum of Conqor 303A and Bisulfate to the first 115 barrels of brine pumped., 3. Displace the 114 barrels oftreated fluid with an additional 92 barrels of brine hanger. 4. This procedure will place corrosicm control in the 4-1/2" x annulus. . . ~IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 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 Safe-Care 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 Loss Reducer Viscosifyer Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Loss Circulation Material Bridging and weighting agent Weighting agent Loss Circulation Material Loss circulation Mate Loss circulation Mate Dispersant Dispersant Dispersant Surfactant Densifier Densifier Shale Inhibitor pH Adjuster BIOBAN BP-PlUS Biocide Product CAUSTIC SODA CAUSTIC POTASH Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Function alinity control Inorganic Borate Sodium Pyrophosphate kalinity control Ikalinity control GREEN CIDE 25G - Biocide or 404 FEKlEEN um Meta ulfate Defoamer Sized graphite LCM hale Control agent etergent orrosion Inhibitor rilling fluid additive hale Inhibitor hale Inhibitor xygen Scavenger . . Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard 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 ~ ..FE ~~ . . - _IFE Marathon Oil Company Well Name: Susan Dionne #4 Rev. #2 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907227-2412 MI SW ACO Gus Wik Warehouse Manager gwik@miswaco.com 907776-8722 907776-8680 MI SWACO Michael Barry Senior Field gratefulmen@hotmail.com 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Roland Lawson / Drilling Foremen 907283-1312 Larry Myers / Dave Morris Marathon Resp()nsibilities )i.> MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. )i.> Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. )i.> Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. )i.> Field Engineers will communicate with office personnel (Marathon & MI SW ACO) for approval of any changes in the mud program (including introduction of new products). )i.> Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~ ..FE am'~ . . . . MCLAN J;.. CON f)U L TINe;'. INc. C 1: V I L .E N GIN E E R S & L AN D SUR V E \1 0 a$ 907-289-4218 Fax:!>()'7·)83-3265 ,¿'":" ) ,AC~1MJLJil TRAN'SHXTTALSJIE:.&T r::: J: ~ '1'0: Yv'; \ ,-r--d.1""t t;. __.. ..."1.. , COMPANY: J-1c.x.... 'i'" .. PAX NUMB!1\.: sÞ G. .~ '"'!. Q Î l.- 'P.t£ONB NWSWl: FROM; Sc-ø -H- DArn: \1/ L 'iJ ftc::.¡.... . TOTAL PAGES: -z. . 10:111 SENDmt'S EMAIL APDIœSS: ~ Tn U; <$,. D .. -::!:d:: 4- :......: '1111I.11.- ... ~ cmO!N'!' ¡:¡ :p.ott ~vmw C A.S UQO~$Tm> t) PUA'ß R.WL y tJ J?U.MJ! uaVCLS - ... ... ··--~.rr ~ - NOTBS/CoMMBNTS: 1__ lr,:'!; :=¡:¡:¡T -:¡ P.O. SOX 468 Sol.dotna( Ala.ska 995G!) ""- " . . .# SUSiTn Di.onno #4- Section Lùte CoordiIUltes for Tyonek & m ~ t' <::::? ~ '\.-<./; J J . .-A... "J . "'=- Page 1 ofl M. SCOtt McLilne From: Tanl<. Will (wjtank@marathonoil.carn] Sent: Monday, NO\lðmber 115, 20043:55 PM To; M. scott Mcl..aoa SubJect: Susa:n PIOl1nlil#4 - section Une Ccol'cllnatesfor 'Tyonèk & TO scott, As per our CQt'1versatlt)l1, toUldyou plBãge supply me with the distances from seal:fon Jines for the fotlOWingt\ND points èdøng our planned·Suaan Dianna #4wel1påttJ. ~L- C'¡:::· ¡::.. ~ e.... -r- ":::> '2,.<;. cq.. / F,.....¡, I..... \ 193/ Þ-r;: :\ . TO 2.236.23tß2' N 206,359.85' E 4- LC ' ~ ~L... 'ßoq$ 1=--e..1 ...... lfyøt.loQl.dd, plllØ$&e-maD thi$ to me. but also couldYÇILl ølease fåx the results to oor Anehor:asa ·fåX. 56.6..3016 since our computer eY$tem ¡ç ~ to go down at 5:00 pm today for same ..mOllnt of time. \:S I'L -r1~VYJ Susan Pionne #4 Stette Plane Cøordlnates. Toþ of Tyonøk. ~,236,sa2.3&' N 208,265.031 ~ ) Thanks. Wi11 1~(:OJmugxnail iå ¢ertifieð VitJ.1ìif'Jet. Cheoked 1?Y AVa (hUp:lIwww.po£tcom). V'orsiœ: 6.a:7881 Virus ase:533 - Itel~P*; 11/112004 ...~ \ . i IS I . "\ .,,' .Çb . ,T' . . . - ~ ,,\, ~ , ./ '\'Z ~I Y¡ C::. '5 e 7 4/ Check No Check Date Bank Bank No Vendor No Marathon Oil Compan P. o. Box 3128 Houston, TX 77253 ~~ó~~~~'ii'Ä~~BLE DEPARTMENT Accts Payable Contact Center Phone: 918-925-6097 :bJ~~(::.: . ..................... Hndlg 1150013 11/09/2004 NCBAS 7780 5001123 iii%.@ij¡iM~( ....JiM.M~~ ..·Þ9~Gi@iiØ~ l1 00.00 11/08/2004 1900033993 TOTAL: HS 100.00 100,00 J~~~A¥@f"·. . 100. 100. (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) . . . nnn , , r-nn , ., .- n I , ., n ., n n r-.- n' n :J I n I III . . TRANSMIT AL LETTER CH:ECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER /' /) l' :II c...j WELL NAME ~ Qõ¿P/7 ~/O/V'Ve- / PTD# 20 7" -- .2 3 3 ><: Development Service CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two. (2) digits are between 60-69) PILOT (PH) Exploration Stratigraphic ~'CLUE"· Tbe permit is for a new weUboresegment of existing weD ~-' . Permit No, _~ API No. Production. sbould continue to be reponed as a function 'of tbe original API number. stated above. HOLE In accordance 'witb' 20 AAC 25.005(1), all records, data and logs acquired .for tbe pilot bole must be dearly differentiated In botb name (name on permit plus PH) and API Dumber (SO 70/80) from records, datJI and logs acquired for well (name 0]0 permit). SPACING EXCEPTION DRY DITCH SAMPLE Tbe permit is approved subject ·to fuU compliance witb 20 AAC 25..055~ Approval to perforate and produce is contingent upon issuance of ~ conservation order ~r~vinÇ. a spacing . e:Heption. ~... (Company Namti.8ssumes tbe liability of any protest to tbe spacing .eJception ebatmay occur. ~:Y An dry ditch sample sets submitted to tbe Commission must be in DO greater 1baD 30' sample intervalis from below tbe permafrost or from where samples are fint caugbt and ] 0' sample iIi1ervals through target zones. . . o o Well bore seg Annular Disposal Program DEV On/Off Shore On NINILCHIK, SD TYONEK UNDEF GAS - 562560 Well Name: NINILCHIK UNIT, S DIONNE 4 Initial ClasslType DE'lLL1-GAS GeoArea Unit - Administration Peol)it fee attached - - - - - - - - - .... Y.es - - - - - 2 .Leas.e.numberappropriate. . . . . . . . . . . · Yes 3 .u.niqueweltnarne.andoumb.er.............. -... -...... . . _ _ . . . . .Y.es v _ _ _ ø . _ _ _ _ _ _ _ _ _ _ _ _ __ 4 Well .located in a. c{efioe.d .1'901. - - - - - - - - - - - - - - - - - - ... .No 5 WelUocated proper _distance from drilling uoit bouod.ary. . . - - - - - .No. 6 Well .located pr.operdistance. from otber wells . . . - - - - .No. - - - - 7 .S.ufficieotacreage.aYailable in.drilliog unit. - - - - ... Yes 8 Jtdeviç¡ted, .is. wellbore plaUoclu.ded . - - - - - .. Yes 9 .Qpe(ator ooly affected Pé!rty. . . . . - - - - .. Yes 10 .Qper.ator bé!s.appr9priate. bond inJorçe. . . . . . _ . . . _ . . . _ . . . . . . .__.____.Y.e$ . - - - - - . - - - - - - - - - - - - - -- 11 Permit can be issued .w.itbout co.nserva.tioo order. . . . - - - - .No Appr Date 12 Permit cao be issued witbout aclmioistrative. appr.oVé!1 . . . - - - - No. - - - -- - - - - RPC 11/15/2004 13 Can permit be approved before 15-day wait No 14 Well .located within ç¡reé! and.str.itaauthorized b}'lojecti9o Ord.er # (put loti in. commeots). (For.NA - - - - - - 15 .AU wells.witJ1in.1l4.rt1ile.area.of reyieW id.eotified (F.or ser"j~.we!l OOly). . . _ . . . . . . _ . . . . .NA. - . - - - - - - - - - - - - - - - - - - 16 Pre-produ.cecl injector; .duratiQn.of pre-pro.ductioo tess than 3 montbs. (For.service welt only) . . .NA - - - - 17 ACMP.F:inding.of Consisteocy.has Þeen.issued. for. this pr.oject . NA - - - - - Engineering 18 C.ondu.ctor string. provided . . . Y.es 20" @ 122'.. . - - - - - - - - - 19 .S.urfa~.casingprotects all. known USDWs . ... Yes 20 .CMT. v.ot é!deQuate. to circ.ulate o.n.cood.uctor. & surf. C$g . - - - - - . . . .Yes Ade~Ué!te excesS, . 21 .CMT. ".01. é!deQuate. to tie-inJong .string to. surf csg . .. Y.es 22 CMT. will çoyeraJI J<oown.productiye borizon.s. - - - - - .... Yes - - - - - - - - - - - 23 .C.asing designs aclec¡ua.te for C,. T, B.& perroafr.ost Y.es - - - - - - - - - - - 24 Adequate tankage. or reserve pit . - - - - - - - - -- Yes Glacier.Rig 1, 25 Jta.re-.drilt has.a to,.403for abé!ndonment be.eo approved. .. .NA New welt . 26 .Mequatewe!lboreseparatio.n.proposeø. . . . . . . . . . _ . . . . . . . . . . . . Y.es - - - - - - - - - - - - - - - - - - -- 27 Jf.diverter req.uired, doe$ it meet rßguJatiolJs. . . Yes - - - - - - - - - Appr Date 28 DJiUiog fluid. program schßmatic.& eq.uipJistadequate. . . Ye$ MaxMW9..6ppgc. WGA 11/16/2004 29 .B.DP.Es,.d.o.they .meet rßguJatioo . - - - - - - - -- - - - - - - Yes 30 B.DPEpress ra.tiog approprié!te;.test to.(pu.t psig i.n.comO'1ßots). · . Y.es Test to 25QO psi. .MS~ 19.86 psi.. 31 .Choke.rt1é!nifold complie~ w/API R~-53 (May 84) · Yes 32 Work will oCC.U( withoutoper¡¡tjon .shutdown. . . . . . . . . . . · . .Y.es 33 J~ pre~ence. of H2S gç¡s probaÞIß. . - - - -- - - - - · . No. 34 Mecbanicalcooclition .of wells witlJio AOR yerifiecl (For. servicß well only) .NA Geology 35 Permit cao be issueø wlo hydrogen. ~ulfide measures. . . · .Y.es 36 .D.atapreselJtecl on. potential ove.rpre~s!Jrezooe$. - - - - - .. .NA Appr Date 37 S.eisO'1ic.analys.is. Qf $ballow gas.z.ooes. . . . NA RPC 11/15/2004 38 .Seç¡beøcooditi.oo survey.(if Off-shore) . . NA - - - - - - - - - - - 39 . Conta.ct nam.elphonefor.weekly progress reports [exploratory.onIYl .. .NA - - Geologic Date: Engineering Date Date Commissioner /r(lõ!+ Commissioner: I(;t /tJ ~'5
