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Home My WebLink About205-190 STATE OF ALASKA AL/-OKA OIL AND GAS CONSERVATION COM, SION S REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon ❑ Plug Perforations J Fracture Stimulate Li Pull Tubing U Operations shutdown ❑ Performed: Suspend ❑ Perforate ❑• Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ erforate New Pool ❑ Repair Well ❑ Re-enter Susp Well ❑ Other: Excape&CTU Perfs •_E 2.Operator 4.Well Class Before orlc: 5.Permit to Drill Number: Hilcorp Alaska,LLC („ Name: _ Development Exploratory L J 205-190 - 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service A 6.API Number: Anchorage,AK 99503 50-133-20557-00- 7.Property Designation(Lease Number): • 8.Well Name and Number: ADL0389737/ADL0384305 Ninilchik Unit G Oskolkoff(GO)04 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Ninilchik Field/Beluga-Tyonek Pool • 11.Present Well Condition Summary: C It \11 'r Total Depth measured 8,175 feet Plugs measured 8,093 feet JUN 0 8 2015 true vertical 4,828 feet Junk measured N/A feet AOGCC Effective Depth measured 8,093 feet Packer measured N/A feet true vertical 4,759 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 116' 13-3/8" 116' 116' 3,450 psi 1,950 psi Surface 3,284' 9-5/8" 3,284' 1,471' 5,750 psi 3,090 psi Intermediate Production 8,131' 3-1/2" 8,131' 4,791' 10,160 psi 10,540 psi Liner Perforation depth Measured depth See Attached Schematic SCANNED JUN 2 6 2015 True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 8,131'MD 4,791'TVD Packers and SSSV(type,measured and true vertical depth) N/A;N/A N/A;N/A N/A; N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 14 Subsequent to operation: 0 0 0 0 134 14.Attachments(required per 20 AAC 25.070.25.071,a 25.283) 15.Well Class after work: Daily Report of Well Operations Cl Exploratory Development❑ • Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas ❑ WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ • SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 315-164 Contact Taylor Nasse Email tnassehilcorp.com Printed Namei Taylor Nasse Title Operations Engineer Signature Phone 907-777-8354 Date C/7// RBDMSk JUN 1 1 2015 Form 10-404 Revised 5/2015 61 7 f s Submit Original Only s,5 /;- • Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date GO-04 50-133-20557-00 205-190 5/2/15 5/10/15 Daily Operations: 05/02/2015-Saturday Obtain PTW and hold safety meeting. Review JSA. Rig up CTU 12. Start BOP test. All rams and valves tested low 250 psi and high 4,500 psi. Pressure test good. AOG CC Notification sent 5/2/15 @ 0716 hrs. Witness waived by Jim Regg 5/2/15 at 1752. 05/03/2015-Sunday Obtain PTW. Hold safety meeting and review JSA. Fire equipment. Remove night cap and pick injector head. G rab 10 ft of lubricator. Make up connector. Pull test connector 25K. Make up MHA. Line up for fluid pack. Pressure test MHA 250 low/ 3,500 high. BHA consists of 2.125"coil connector,2.125"hydraulic disconnect,2.125" NOV BIDI jars and 2.50"jet swirl nozzle. Install injector head on well. Pressure test lubricator 250 low/4,500 high. G ood test. Bleed down. Open well and RIH. 71 psi initial WHP. WHP building at 1,386 ft. 500 psi. Bleed down to tank. Fluid returns at tank. Well is holding column of fluid. Perform weight checks every 2,500 ft or where needed. Tag first ceramic disk at 6,761 ft. Stack-9K 9 minutes for jars to hit. 5K hit. Looks like we broke disk. RIH 20ft past disk and POOH. Normal OOH weight 24K. Clean through disk area. Continue to RIH to second disk or module#4 7,193'-7,203' tagged module ceramic flapper at 7,183'CTMD. -10K stack. 5K jar hit after 12 minutes. Broke through. Stack weight on module#3 at 7,284 ft CTMD. -12K stack. 3 down jar licks and no luck at breaking through. Online with pump while stacked on top of disk. No increase in circulation pressure. No break back in weight. Stacked down on something hard. Not believed to be fill. Module 3 did not look like it fired when production shot. Weight checks look good. Stack down 5 more times at-12 K. No jar licks. Called town and decided to blow well down from 7,284'CTMD. Online N2 down coil. Returns at surface instantly. Calculated tank strap results in 62 bbls returned. 40 bbls from well and 22 from coil volume. Well blowing straight N2. Sniffed with gas detector 2%LEL reading at return tank. POOH . Down on N2 at 6,500 ft. 800 gallons of N2 used for blow down. Let well bleed down remaining N2 to tank. Z ero pressure at surface,close in choke. Continue to POOH while monitoring well head pressure. Well head slowly climbing. 25 psi and 158 psi before closing in swab to break off. Tools recovered. BHA looks to be all intact and functional. No sign of why jars stopped working from the outside. Break down tools. Stack down lubricator.Production ready to turn well over. Waiting on hands to install night cap. Stack down injector head. Shut down equipment. Wellsite secure. Production will flow through SLB flow cross and choke to open top tank. Crews off location. 05/04/2015-Monday Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date GO-04 50-133-20557-00 205-190 5/2/15 5/10/15 Daily Operations: Obtain PTW. Hold safety meeting and review JSA. Pick injector head and 20 ft of lubricator. Cut 30 ft of CT. Make up coil connector and pull test to 25K. Make up motor BHA. 2.125"cc,dfcv,jars,disconnect,circ sub, motor and a 2.5"3 blade junk mill. Pressure test 250 and 4,500. Good test. Stab on well. Pressure test lubricator to 250psi and 4,500 psi. G ood test. Bleed down. Open well and RIH.58 PSI WHP. Supply tank strap 268 bbls. Return tank 55bbls. Perform weight checks when needed. Stack weight at 7,125 ft CTMD. Normal RIH weight 0 and up weight 15K. Stack-4K down at 7,125'. Weight slowly breaking back. Stack 1K more. Weight breaking back. Looks like CT is in fill. Pick up 30K 13K overpull string weight. Parked at 6,500 ft lined up down coil to fluid pack. Returns at surface grey with sediment of cement. RIH pumping 1.2 bbls minute through motor. Free spin pressure 2,375 psi. Dirty returns at surface. Saw slight motor work and weight stack at 7,125'but making good hole 5 ft/min. Did not see Module 3 while RIH . Previous day tagged it at 7,284'CTMD. RIH,tagged hard and stalled motor at 7,787 ft CTMD. Great ROP from 7,125'to 7,787'. 3 Stalls at 7,789 ft CTMD. Stack 5001bs and milling. Milled to 7,796 ft ctmd. 6 ft/hr. CTMD correctecd to RKB puts us at module 2. Hard milling for 10 ft from top of module to bottom of module. Previous tags show CTMD tagging 10 ft higher than schematic. 7,800.5 ft CTMD drilling break. Able to RIH to 7,820'. Stack weight and stall at 7,820'CTMD.Pick up milling again .3ft/min. 7,823 ft another drilling break. RIH and stack weight at 7,835.7 ft CTMD. Vac trucks not able to keep up. Filter skid to transfer fluid sucking up cement and plugging up. Unable to keep up with fluids. Decison was made to POOH and resume with fresh 300 bbls tomorrow. Total bbls pumped for milling operation 265 bbls. 258 ft left before reaching PBTD. CT max depth 7,835.7 ft uncorrected. While pulling OOH pulled heavy at 1,500 ft CTMD. Assumed to be fill in dog leg. Able to RIH. Pull back up through 1,500 ft no problem. At surface. Swab closed and wellsite secure. Crews off location. 05/05/2015-Tuesday Obtain PTW. Hold safety meeting and discuss job scope and hazards wtih crews. Pick injector head and stab 20 ft of lubricator. Make up tools stab on well. Pressure test lubricator 250 low/4,500 psi high. Bleed down. Open well to RIH. Initial WHP 110psi. RIH. 303 bbls of fluid in supply tank. Start pumping min rate.25 bbls min at 6,400 ft. Fluid level seen at surface. Tag at 7,878.7 ft CTMD. Pick up. Start milling at 1.2 bbls/min. Small motor work from 7,878 FT to 7,884 ft. Sand in returns. Mill to 7,914 FT CTMD. Stall motor 4 times. Drilling break 6ft/min.Tag 7,931.5 ft CTMD. Milling hard from 7,931 to 7,945 ft. 12 stalls. Stuck unable to move in hole or POOH 22K over pull. Jar lick up able to POOH at 7,940 ft. Continue milling. Weight checks seem to be pulling less heavy each time. Returns are clean. Believed to be tagging up in module profile#1. Broke through module 1. 7,947 ft CTMD no weight stack. Making hole 3 ft/min . Attempt to make rat hole and tag PBTD. Clean RIH weight and no over pull seen on up weights once past last module#1. Tagged 3K down at 8,063 ft CTMD. Picked up and tagged again. Motor stall. Good indication on PBTD. Pick up off bottom. Start circulating bottoms up. 46 bbl bottoms up volume. Still getting some dirty returns pump additional 25 bbls. Load 3/8"circ sub ball in CT. Start -r A) cooling down N2. Pump 3/8" ball to seat. 22 bbls away ball on seat. Pressure up to shear pins. Pins shear at 3,850 psi. Additional 22 bbls pumped while getting ball to seat. Total clean up of 93 bbls from bottom. No sand or metal shaving in returns. Well is cleaned up. PT N2 lines 4,500 psi. Online down coil with N2 rate 1,500 scf/min. CT parked at 8,055 ft blowing well dry. Straight N2 seen at surface. Start POOH. Very sticky coming through first module. Move in and out of hole. Pulling 20K heavy. Worked out and POOH to surface. Shut N2 down at 5,000 ft. Well dry. 5%LEL on meter. Total N2 pumped 120,000 scf/min or 1,300 gallons. 46 bbl well volume recovered. 25 additional bbls from formation or 3.5in tubing annulus. Looked to be unset cement. SLB CTU broke down at 4,000 ft. G enerator water pump. Shut down generator and hooked up jumper cables to truck and batteries. Continue POOH.Swab shut and well turned over to production. 50psi on wellhead. CT crew is sourcing additional gen set. Maintenance day in field tomorrow for SLB. 05/08/2015-Friday Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date GO-04 50-133-20557-00 205-190 5/2/15 5/10/15 Daily Operations: Obtain PTW. Conduct safety meeting and review and discuss Job Safety Analysis and procedures. Fire equipment. Check night cap for no flow. Pull night cap off BOPs. Pick injector head. Stab 30 ft of lubricator. Make up BHA. Consists of CC/DFCV/straight bar,jet swirl nozzle. BHA Length 9ft. OD 1.75"and 2.5in nozzle. Z ero at packoff tag. Stab on well and pressure test 250psi low and 4,500 psi high. Good test no leaks. Bleed down lubricator. Open well and RIH. Initial WHP 90 psi.Perform weight checks as needed. Stack weight at 7283.5 ft. Believed to be stacking in module 3. Previous problems with stacking weight at module 3(7,294'-7,304'). Hard tag 4K down. Pick up weight clean at 17K. RIH and tag at 7,283.8 ft. Hard tag and clean pick up indicates not tagging on fill. Pick up clean 17K. RIH tag 7,283.8 ft. POOH to surface. Tagged up at surface. Bleed down stack. Pop off well. Break down BHA. 2.5 in nozzle was run to drift for 2.0in guns as well as 1.75in memory CCL and gamma ray tools. Rigged up slim BHA 1.75in OD. CC/DFCV/3 straight joints/1.75in slim nozzle. 16 ft length. Stabbed on well. Pressure test low 250 psi high 4,500 psi. Bleed down. RIH . WHP 41 psi. Tagged at 7,245.4'. 3 attempts to pass 7,245.4'with no luck. Clean pick up weights 17K. POOH to surface. Swab closed. Bleed off stack. Pop off well rig down BHA. Rigging up memory run. CC/DFCV/3 straight joints/knuckle joint/CCL gamma ray tools. 1.75"OD. CCL/GR 1.6875"OD. Tool string length from CCL to EOP=20.7ft. Tag pack off and zero depth. Stab on well. PT low 250/4,500 psi. Good test. Bleed down. Open well and RIH. Moving coil slow to prevent damage to memory tools. Tagged with 1,000 lbs down at 7,169.7'. PU weight clean. RIH 2 ft/min. Tagged 7,169.7 ft. Pick up 17K. RIH tag same depth 7,169.7 ft. No luck passing through escape modules with memory tools. Called town and decided to log from 7,173ft to 6,000 ft at 60 ft/min. Stopped at 6,730.6'and paint red flag. 50 ft above highest perf interval. Continue to log 60 ft/min. Tagged up at surface. Bleed down stack. Pop off well. Break down memory tools.and check for good data. G ood data confirmed. Rig down BHA. Stack down lubricator and set injector on deck. Secure well. Sent uncorrected tie in log to town for correlation. Wellsite secure. Crews off location. 05/09/2015-Saturday Hilcorp Alaska, LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date GO-04 50-133-20557-00 205-190 5/2/15 5/10/15 Daily Operations: Obtain PTW. Hold safety meeting and discuss job objectives and BOP test procedure. Fire equipment. Remove night cap. Start BOP test. Test all rams and valves 250 lowe 4,500 high. G ood test. BOPE test complete. State BOP test form sent off. Pick injector head and 30 ft of lubricator. RIH and make up coil connector. Pull test connector 25K. Make up DFCV and Hydraulic disconnect. Pressure test MHA to 250 low and 3,500 psi high. G ood test. Bleed down. Pre job safety meeting with TCP for gun runs. Install 3 firing heads on CT tool string.Stab on well. Isolate coil and fluid pack up back side. Pressure test firing head connections to ensure pin doesn't shift. 2,500 psi. Bleed down. Pop off well. Inspect firing pins. G ood PT pins did not shift. Break off two firing heads. Make up 20 ft gun loaded with h 13'interval 6 spf 2006PJNOVA. 2.00"G uns 6 SPF 60 Degree PJ Nova HMX 7.3gm. Stab on well with guns. Pressure test up back side of guns to 2,500 psi. G ood pt bleed down. Open well and RIH WHP 297 psi. Water returns at surface CT measured depth of 2,145 ft. Indications of unset cement in returns. Found flag at 6,740 ft CTMD. Ran past flag and picked to flag. Depth of flag while logging 6,730.60 ft. Tool length+ MHA 20.69 ft. Depth off set from correlation log from town 26 ft shift. Corrected end of pipe measurment 6,735.91ft. Uncorrected flag depth 6,739.6 ft. -tool reference of 20.69 ft=EOP at flag 6,735.91' +14.10' EOP to top shot=6,750.01'. Corrected coil depth at flag to 6,750.1 ft. RIH,made it past 3rd module without issue. Tagging up at 7,644 ft. 5 attempts to J5( make it past obstruction. No luck. Called town and was told to pick up to run 4 depth of 6,812'-6,824ft. Pick up to 6,812'. (_ "' Parked. Drop 1/2 in ball in reel. High gear stall 2,500 psi. Launch ball. Ball confirmed moving through coil at 1.5 bbls min. �l Z,L--%° Ball on seat at 22.6 bbls away. Pressure up at 1 bbl min to 3,100psi,guns fired. POOH 50 ft to flag depth. Park coil at 6,737 ft. No increase in pressure. Choke open. Coil static. Wellbore fluids slugging to open top tank. Cooling down N2. RIH below perforations and came online with N2 at 1,500 scf/min. Solid N2 at surface. Begin POOH down on N2. Wellbore capacity at perforation depth is 38 bbls=ct volume22. Total of 60 bbls. Total fluid recoverd from N2 lift 65 bbls. At surface. Swab closed. 56,000 scf pumped. While blowing down well kept wellhead pressure between 400 and 600 psi to help keep formation back. Rig down guns. 1/2 in ball recovered. Confirmed all shots fired. Lay down gun. Stack down lubricator. Injector head on deck. Shut down CTU equipment. Turn well over to production. 230 psi on wellhead when production opened up to vent. 05/10/2015-Sunday Obtain PTW. Hold safety meeting and review JSA. Discuss job procedures. Pick injector head and stab 30 ft of lubricator. Install pressure test plate and fluid pack coil with 22.3 bbls. Pressure test MHA(CC, DFCV,hydraulic disconnect) 250 low and 4,500 psi high. Pressure test good. Bleed down. Pick up-8'interval of 2.00'6 SPF 60 deg 2006 PJ NOVA HMX 7.3 gm with 21.1 Penetration. Stab on well. Line up down back side. Set trips to 1,500 online for PT. Pump trips work. Pressure test stack to 250 low and 2,500 psi high. G ood test. Bleed down. Open well and RIH. Initial WHP 185 PSI. Stop at flag. CT flag C depth 6,782 ft CTMD. Uncorrected flag depth 6,730.60 ft.-tool reference to EOP=20.69 ft+26 ft correlation depth shift ��+ decided by town. Corrected EOP at flag 6735.91'+EOP to top shot 9.1 ft=6745.01'tpp shot at flag. Input depth of 101 6,745.01'. RIH to 6,800 ft. Pull up hole in tension to 6,788 ft. On depth for interal. Load 1/2 in ball in coil. Come online with high gear stall. Open up production flow line to apply 350 psi gas pressure to wellhead. Ball confirmed moving through coil. Ball on seat after 22.3 bbls away. Pressure up to fire guns. 3,400 psi guns fired. Pick up OOH 50 ft. Stop coil and monitor well head for pressure change. Cooling down nitrogen. No change in WHP. Open choke and bleed off to tank. RIH to blow coil dry. No issues passing module 3. Tag at 7,164.9 ft. 5 attempts to make it past 7,154.9'. No luck. Online with N2 at 1,500 scf/min. Move pipe up and down through 7,164'to 7,000 ft. Straight N2 at return tanks. Start POOH to surface Down on N2 . Total N2 pumped 156,000 scf. Continue to POOH. At surface swab closed. Bleed off stack. Turn well over to production.Pop off well. Confirmed all shots fired. Recover 1/2" ball. Rig Down CTU 12. Well flowing at 80k MCF average. CTU 12 rigged down. Wellsite secure. Coil crew moving equipment to Cannery Loop. Crews off location. f G�-4 ACTUAL Ninilchik Unit 3,16T FSL & 2,399' FWL SCHEMATIC Sec. 23, TIN, R13W, S.M. Hilcorp Alaska,HA Permit#: 205-190 13-3/Conductor 8" K-55 68 ppf API#: 50-133-20557-00 Top Bottom Prop.Des: ADL389737/ADL384305 MD 0' 116' KB Elevation: 187' (21'AGL) ' TVD 0' 116' X: 229,136.00 Y: 2,255,130.00 1:1-' Latitude: Longitude: Surface Casing Spud: 12/09/2005 I 9-5/8" L-80/S-95 40 ppf BTC TD: 12/23/2005 Top Bottom Rig Released: 12/30/2005 @ 06:00 hrs. MD 0' 3,284' Date Shut In: 06/19/2006 TVD 0' 1,471' 12-1/4"hole Cmt w/713 sks(559 bbl)of 12.0 ppg, Type 1 cmt,102 sks(130 bbls) of returns Tree cxn=4-3/4"Otis Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod :" Top Bottom 8rd MD 0' 8,131' Top of Cement TVD 0' 4,791' (est. @ 2,784'MD 8-1/2"hole Cmt w/1,100 sks(428 bbls) (500'above 9-5/8"shoe) N. of 12.7 ppg,class G cmt .' 4 Excape System Details \� 'x -6 Conventional flappers C. 414441k, t, -Mod 1-no flapper *t�`" Ceramic flapper valves below ' \ iy each module as follows: qiia, A. Flappers MD(RKB): R.* \1 "r Module 7-6,459' Module 6-6,719' �"',i ,\ I 41,14.k, Module 5-6,789' Module 4-7,211' p� Module 3-7,313' ., \ .+►r, Module 2-7,819' 40 Module 1- NA Excape System Details , - 7 Excape modules placed -Green control line fired module 1 \ - contol line fired modules 2 thru 7 -Ceramic flapper valves below each module ' except for module 1 NItt Perfs MD(RKB) (All Tyonek Zones): MD TVD 1Medule-7---6440-646W ",lb. 411\k.. . , � + y Formation Tops: Formation Depth Module 5 6769-6779' 3,676'-3,684' ¢+11' \`,.�� Tyonek T2 7,800'MD 4,517'TVD Module 4 7193-7203' 4,022'-4,030' `.,, Tyonek T2 7,595'MD 7,017'TVD Module 3* 7294-7304' 4,104'-4,113' 6 TD 8,175'MD 4,828'TVD Module 2 7,800'-7,810' 4,518'-4,526' Markers: Module 1 7,948'-7,962' 4,639'-4,651' Geologic Depth *No indication that Module 3 successfully fired. ✓ TD PBTD Formation eptMD 1,244'TVD 8,175' MD 8,093'MD Beluga 2,007''MD 3,391'TVD Tyonek Perfs: 4,828'TVD 4,759'TVD TyonekMD Ft Size SPF Gun Type Date 6,788'-6,796' 8 2" 6 60 deg phase 05/11/15 6,812'-6,824' 12 2" 6 60 deg phase 05/10/15 )(------ t, Well Name&Number: Grassim Oskolkoff#4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough _ State: Alaska Country: USA Perforations(MD): 7,800'-7,960' Per((TVD): 4,518'-4,649' Angle @ KOP&Depth: 3.8°/100' @ 150 ft _ Angle @ Perfs: 350 Date Completed: 2/1/2006 Ground Level: 166' (AMSL) RKB: 21' (AGL) Revised by: Taylor Nasse Revision Date: 03/20/15 Tye(COY I jy, s THE STATE Alaska Oil and Gas • sQ��.='� fALAS�:A o Conservation Commission -�-�_ .011't 333 West Seventh Avenue � Anchorage, Alaska 99501-3572 GOVERNOR BILL WALKER 9 Main: 907.279.1433 OF ALASIJ.' Fax: 907.276.7542 www.aogcc.alaska.gov Taylor Nasse t4V° Operations Engineer SCik Hilcorp Alaska, LLC d — (9 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Ninilchik Field, Beluga-Tyonek Pool,Ninilchik Unit G Oskolkoff 4 Sundry Number: 315-164 Dear Mr. Nasse: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, /0/° Daniel T. Seamount, Jr. Commissioner DATED this // ay of April, 2015 Encl. CEIMED STATE OF ALASKA . ALASKA OIL AND GAS CONSERVATION COMMISSION MAR 2 3 Z015 APPLICATION FOR SUNDRY APPROVALS � �� 20 MC 25.280 1.Type of Request: Abandon El Plug for Redrill ❑ Perforate New Pool ❑ Repair Well 0 Change Approved Program 0 Suspend❑ Plug Perforations ❑ Perforate 2 . Pull Tubing❑ Time Extension 0 Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casing❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. Hilcorp Alaska,LLC Exploratory 2 - Development ❑ 205-190- '3.Address: Stratigraphic ❑ Service ❑ 6.API Number. 3800 Centerpoint Drive,Suite 1400,Anchorage AK,99503 50-133-20557-00 7.If perforating: B.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? C.O.701 • Will planned perforations require a spacing exception? Yes ❑ No E71 ).> Ninichik Unit G Oskdkoff 4 • 9.Property Designation(Lease Number): 10.Field/Pool(s): i5.za.dS ADL0389737/ADL0384305 Ninilchik Field/Beluga-Tyonek Pool • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 8,175 4,828' 8,093 4,759 8,093 N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 116' 13-3/8" 116' 116' 3,450psi 1,950psi Surface 3,284' 9-5/8" 3,284' 1,471' 5,750psi 3,090psi Intermediate Production 8,131' 3-1/2" 8,131' 4,790' 10,160psi 10,540psi Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): N/A and N/A N/A and N/A 12.Attachments: Description Summary of Proposal ❑., 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development E J - Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 03/31/15 Oil p Gas 0 • WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Taylor Nasse Email tnasseehilcorp.com Printed Name Tayl r Nasse Title Aerations Engineer Signature _ Phone 777-8354 Date 3/'), //,) COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 315 -1Le- Plug Integrity 0 BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance 0 Other: (Spacing Exception Required? Yes ❑ No L] Subsequent Form Required: /o._LI Q'( / APPROVED BY IApproved by: 10 COMMISSIONER THE COMMON MDate: g/,i4/15 /31? Ria # pp '��/y-/S SubmnFop and Form 10-403(Bevis toi of p r d c t a li for 12 months fr he date of approval. Attachments in Duplicate ; /s RBDMS APR 1 8 2015,40 - 3 s-is' Well Prognosis Well: GO#4 Mewl)Alaska,Lb Date:4/8/2015 Well Name: Grassim Oskolkoff#4 API Number: 50-133-20557-00 Current Status: Shut In Leg: Estimated Start Date: April 14, 2015 Rig: Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 205-190 First Call Engineer: Taylor Nasse (907) 777-8354(0) (907)903-0341 (C) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824(C) AFE Number: Estimated Bottom Hole Pressure: —2,045 psi at 4,544' TVD (Assumed 0.43 psi/ft gradient) Max. Anticipated Surface Pressure: —1,590 psi (0.10 psi/ft gas gradient) Brief Well Summary GO#4 is a well that was previously completed in the Tyonek sands but is currently shut in. The well consists of 9-5/8"surface casing and 3-1/2" production tubing. Objective of Work Add perforations in the Tyonek T1,T6,and T12 sands. Notes Regarding Wellbore Condition • Well is originally completed with an Excape System with unfired modules. Prior to perforating the well with coil tubing,we will pressure up the control line in an attempt to fire modules 3-5. • Verify tubing is pressured up to 750 psig prior to perforating. Excape Procedure 1. RU hydraulic pump equipment and pressure test to 250 psi low/10,000 psi high. 2. Connect to red (middle) control line. Pump hydraulic fluid into control line until 500 psi is reached and hold for 10 minutes to verify line integrity. 3. Begin pumping until firing pressure range is reached and monitor well for indication of module firing. See below for module surface pressure ranges. Firing Surface Pressure Top(MD) Btm (MD) FT Module 5 6,200-7,000 psig 6,769 6,779 ' 10 �KeAr Module 4 5,200-6,000 psig 7,193' 7,203' 10 0� Module 3 4,200-5,000 psig 7,294' 7,304' 10 4. After module#5 fires or upper pressure range is reached,stop pumping and bleed off hydraulic lines. RD pumping equipment. Well Prognosis Well: GO#4 IIilcora Alaska.LL Date:4/8/2015 Coiled Tubing Procedure 1. RU CTU and equipment. Notify AOGCC 24 hours prior to testing at http://doa.alaska.gov/ogc/forms/TestWitnessNotif.html 2. Shell test BOPE/lubricator to 250 psi low/4,500psi high (unless due for weekly BOPE test—then a full BOPE test will be done). 3. If modules 3-5 were successfully fired, RIH to break flappers. 4. Perforate the Tyonek T1,T6, and T12 sands with 2" 6 SPF 60 deg phased perf guns. Depths are from the Expro GR/CBL/CCL log dated January 28, 2006. Send the correlation pass to Taylor Nasse and David Buthman for confirmation. Proposed Perforated Interval Sands Top(MD) Btm (MD) FT Tyonek T1 ±6,756' ±6,838' ±82 Tyonek T6 ±7,169' ±7,189' ±20 rt,r {s Tyonek T12 ±7,910' ±7,983' ±73 5. POOH. 6. Flow well through test separator and record water and gas rates. 7. RD CTU. 8. Turn well over to production. 9. If any sands are not commercial,then the zones will be isolated with a tubing/casing patch. Attachments: Actual and Proposed Wellbore Schematics • Well Prognosis Well: GO#4 llikorp Alaska,LL Date:3/19/2015 Well Name: Grassim Oskolkoff#4 API Number: 50-133-20557-00 Current Status: Shut In Leg: Estimated Start Date: March 31, 2015 Rig: Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 205-19 First Call Engineer: Taylor Nasse (907) 777-8354(0) (907)903-0341 (C) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824 (C) AFE Number: Estimated Bottom Hole Pressure: —2,045 psi at 4,544'TVD ssumed 0.43 psi/ft gradient) Max. Anticipated Surface Pressure: —1,590 psi (0.10 psi/ft g gradient) Brief Well Summary GO#4 is a well that was previously completed in the Tyonek sands ut is currently shut in. The well consists of 9-5/8" surface casing and 3-1/2" production tubing. Objective of Work Add perforations in the Tyonek T1,T6, and T12 sands. / Notes Regarding Wellbore Condition fr +j�,! mew • Well is originally completed with an EXcape System. 1)E • Verify tubing is pressured up to 7504 sig prior to perforating. E-Line Procedure 1. MIRU e-line and pressure control equipment. PT lubricator to 250 psi low/2,500 psi high. 2. Perforate the Tyonek T1,T . and T12 sands with 2"6 SPF 60 deg phmegl Aerfg ins.These intervals are planned for 12 SPF so they will be shot twice. Depths are from the Expro GR/CBL/CCL log dated January 28, 2006. Send the correlation pass to Taylor Nasse and David Buthman for confirmation. Proposed Perforated/Interval Sands Top(MD) Btm (MD) FT ✓ Tyonek T1 ±6,756' ±6,838' ±82 Tyonek T6 ±7,169' ±7,189' ±20 Tyoney/ T12 ±7,910' ±7,983' ±73 3. POOH. 4. Flow well through test separator and record water and gas rates. Well Prognosis Well: GO#4 Ililcorp Alaska,LL Date: 3/19/2015 5. RD a-line. 6. Turn well over to production. 7. If any sands are not commercial, then the zones will be isolated with a tubing/casing patch. Attachments: Actual and Proposed Wellbore Schematics e -x�_ 3 ` D GO-4 ACTUAL Ninilchik Unit , n 3,167' FSL & 2,399' FWL SCHEMATIC Sec. 23, T1 N, R13W, S.M. Iileeorp Alaska,LL(: Permit#: 205-190 Conductor API#: 50-133-20557-00 LI 13-3/8" K-55 68 ppf Prop.Des: ADL389737/ADL384305 Top Bottom 1.. MD 0' 116' KB Elevation: 187' (21'AGL) ' ND 0' 116' X: 229,136.00 'r 1 Y: 2,255,130.00 f'4 Latitude: Longitude: Surface Casing Spud: 12/09/2005 9-5/8" L-80/S-95 40 ppf BTC TD: 12/23/2005 Two Bottom Rig Released: 12/30/2005 @ 06:00 hrs. A��III MD 0' 3,284' Date Shut In: 06/19/2006 N 0'D m sks 71' (5 ti 12-1V hole Cw/713 bbl)of 12.0 ppg, Type 1 cmt,102 sks(130 bbls) of returns ,ate, NINNIIIIIMV '11111 Production Tubing 3-1/2" L-80 9.3 ppf EUE Mod 1:011/4 Top Bottom 8rd MD 0' 8,131' Top of Cement ND 0' 4,791' (est. @ 2,784'MD IIN8-1/2"hole Cmt w/1,100 sks(428 bbls) (500'above 9-518"shoe) of 12.7 ppg,class G cmt ‘44- Excape System Details •'!;, \.� 6 Conventional flappers $_ -Mod 1-no flapper 6.4 I t -Ceramic flapper valves below ft., . ; each module as follows: Flappers MD(RKB): Module 7-6,459' `. Module 6-6,719' A. Module 5-6,789' N Module 4-7,211' No Module 3-7,313' Module 2-7,819' -)\ t Module 1- NA , Excape System Details , J4 I \ - 7 Excape modules placed -Green control line fired module 1 \; . contol line fired modules 2 thru 7 -Ceramic flapper valves below each module Formation Tops: pi,1 Formation Depth except for module 1 `•', `* Tyonek T2 7,800'MD 4,517'ND " `'' Tyonek T2 7,595'MD 7,017 ND Perfs MD(RKB) (All Tyonek Zones): may MD ND "^? TD 8,175'MD 4,828'TVD Module-7---6440-6460' Modules 3-7 Module 6 6700-6710' not completed Geologic Markers: Module-6--6769-677-8! TD PBTD e Formation Depth due to poor Beluga 2,007'MD 1,244'TVD cement quality 8,175' MD 8,093'MD Tyonek 6,420'MD 3,391'ND ule 7284-7304 4,828'TVD 4,759'ND 2 Module 2 7,800'-7,810' 4,518' , Module 1 7,948'-7,962' 4,639'-4,651' Well Name&Number: Grassim Oskolkoff#4 Lease:_ Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 7,800'-7,960' Perf(TVD): 4,518'-4,649' Angle @ KOP&Depth: 3.8°/100' @ 150 ft Angle @ Perfs: 35° Date Completed: 2/1/2006 Ground Level: 166' (AMSL) RKB: 21' (AGL) Revised by: Donna Ambruz Revision Date: 03/10/15 G�-4 PROPOSED Ninilchik Unit 3,16T FSL & 2,399' FWL SCHEMATIC Sec. 23, TIN, RI3W, S.M. Hik•orp Alaska. UA _._ Permit#: 205-190 Conductor API#: 50-133-20557-00 I.- 13-3/8" TTop 1 -553-3/8" B6ppf Prop.Des: ADL389737/ADL384305 Bottom MD 0' 116' KB Elevation: 187' (21'AGL) TVD 0' 116' X: 229,136.00 Y: 2,255,130.00 Latitude: Longitude: Surface Casing Spud: 12/09!2005 I 9-5/8" L-80/S-95 40 ppf BTC TD: 12/23/2005 Top Bottom Rig Released: 12/30/2005 @ 06:00 hrs. MD 0' 3,284' Date Shut In: 06/19/2006 TVD 0' 1,471' 12-1/4"hole Cmt w/713 sks(559 bbl)of 12.0 ppg, Type 1 cmt,102 sks(130 bbls) of returns Tree cxn=4-3/4"Otis Production Tubing '" !� 3-1/2" L-80 9.3 ppf EUE Mod Top Bottom Ord MD 0' 8,131' Top of Cement 1 TVD 0' 4,791' (est. @ 2,784'MD , '\ 8-1/2"hole Cmt w/1,100 sks(428 bbls) (500'above 9-5/8"shoe) \ r of 12.7 ppg,class G cmt Excape System Details \\ -6 Conventional flappers t \ -Mod 1-no flapper 1-, -Ceramic flapper valves below Alach module as follows: Nit `� Flappers MD(RKB): {';►' \714" 4. A'4 `?.x* Module 7-6,459' Module 6-6,719' Module 5-6,789' Module 4-7,211' \ .9,,..n 1, Module 3-7,313' .As \ Module 2-7,819' . Module 1- NA • 4. Excape System Details {4 , k, 'A J - 7 Excape modules placed \ -Green control line fired module 14 -Red contol line fired modules 2 thru 7 # -Ceramic flapper valves below each module '4 except for module 1 %. 1 ''., . Perfs MD(RKB) + ) (All Tyonek Zones): �� .r:. MD TVD , Formation Tops: /KLw�{ -,' Formation Depth �woou{e i -6769-6ris- 3,67ti'3,684' iil ' , 7, Tyonek T2 7,800'MD 4,517 TVD {/Module 4 -7191-7203' 4,022'4,030' 4 Tyonek T2 7,595'MD 7,017'TVD Pule 3- 1' 4,104' 3'i TD 8,175'MD 4,828'TVD Module 2 7,800'-7,810' 4,518'4,526' Geologic Markers: Module 1 7,948'-7,962' 4,639'-4,651' TD PBTD Formation Depth Proposed Tyonek Perfs: 8,175' MD 8,093'MD Beluga 2,00T MD 1,244'TVD MD Ft ailsram Gun Tvoe QIt2 4,828'TVD 4,759'TVD Tyonek 6,420'MD 3,391'TVD 6,766'-6,838' 2" 6 60 deg phase Proposed 7,169'-7,189' 6 60 deg phase Proposed 7,910'-7,983' I 60 deg phase Proposed Well Name&Number: Grassim Oskolkoff#4 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD): 7,800'-7,960' Peri(TVD): 4,518'-4,649' Angle @ KOP&Depth: 3.8°/100' @ 150 ft Angle @ Perfs: 35° Date Completed: 2/1/2006 Ground Level: 166' (AMSL) RKB: 21' (AGL) Revised by: Taylor Nasse Revision Date: 03/20/15 S • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Wednesday,April 08, 2015 10:36 AM To: 'Taylor Nasse' Cc: Chad Helgeson;Jeff Allen; David Buthman Subject: RE:GO#4 perfing (PTD 205-190) Taylor, I agree with your proposed plan below. Please submit a new perforating plan for the sundry to cover the two different contingencies since you are going to try to use the existing perf modules (4-7) in the well completion. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell y 1-//-0' 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Taylor Nasse [mailto:tnasse(d)hilcorp.com] Sent: Wednesday, April 08, 2015 9:25 AM To: Schwartz, Guy L(DOA) Cc: Chad Helgeson; Jeff Allen; David Buthman Subject: RE: GO #4 perfing (PTD 205-190) Hi Guy- Sorry for the delayed response. The CBL run during the initial drilling of this well did not show good isolation or consistent bond throughout the entire wellbore. It appears that there are areas with cement, but there is no clear good cement bond or top of cement. Based on drilling records, there was enough cement pumped to take it up to 830'. We think there is channeled cement due to the near horizontal nature of this wellbore based on logs we have seen in similar wells. We are not planning on fracing through these intervals and would be more concerned with the cement quality if this were the case (we believe this is why Marathon elected to not fire the upper modules). We feel that this cement is approximately the same quality of other wells in Ninilchik which have been perforated in areas with questionable bond. We have been talking with the Designer/Engineer that patented the Excape completion about shooting with the unfired modules and the potential of firing through the modules. He thinks there may be a 50/50 chance that the charges may still be functional if the control lines still have integrity. Would you be open to us updating our procedure with the idea of trying to fire the modules by pressuring up the control lines? We feel this is low risk,as it would fire the charges and close the flapper valves to isolate each zone. After which we would probably remove the flappers utilizing a coil tubing unit. Afterwards,we would need to perforate the additional zones with coil tubing or tractors on e-line. If you have any additional questions please feel free to contact me. Thanks, 1 IPS Taylor W. Nasse, PE Operations Engineer Kenai Asset Team Hilcorp Alaska, LLC (907) 777-8354 office (907)903-0341 cell From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Wednesday, April 01, 2015 11:42 AM To: Taylor Nasse Subject: GO #4 perfing (PTD 205-190) Taylor, The schematic indicates that modules 3-7 were never perfed and frac'd due to poor cement quality. You are planning on shooting into the Escape system into"live"guns on the other side of the tubing. Any concerns with this? ... Also what is the cement quality on the completion like? How bad is it? Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226)or(Guy.schwartz@alaska.gov). 2 ~ i 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. 02, Q ~ - 1 ~ ~ Well History File Identifier Organizing done) ^ Two-sided III II~III II III II III ^ Rescan Needed III II'lll II II III II R SCAN C for Items: Greyscale Items: ~ ~~ ^ Poor Quality Originals: ^ Other NOTES: BY: l Maria DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: ~ f ~ ~ /Q OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: hiuiuiimiwmu P Project Proofing BY: Maria _ Scanning Preparation BY: Maria Date: r ~' , ~ I D _x30= Date: 5' ~~ + ~ =TOTAL PAGES~~ Q ~ (Count does not include cover sheet) /s/ Production Scanning 1 IIIIIIIIIIIIIIIIIII Stage 1 Page Count from Scanned File: ~~,~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES NO BY: Maria Dater f ~ ~ ~ /s/ Stage 7 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Oate: /s/ Scanning is complete at this point unless rescanning is required. II I II II II I II II I I III ReScanned BY: Maria Date: Comments about this file: o , ~,~k,d iiiuiiiiiiiuiiii P P 10/6/2005 Well History File Cover Page.doc ~ .~. ~~ ~' .~ ;,;;: -t .-_ _ V ~ ,~_ ~' ~~_ * } W MICROFILMED 6/30/201.0 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\TemporazyTnternet Files\OLK9\Microfilm_Mazker.doc ~~- DATA SUBMITTAL COMPLIANCE REPORT 5/12/2008 Permit to Drill 2051900 Well Name/No. NINILCHIK UNIT G OSKOLKOFF 4 Operator MARATHON OIL CO API No. 50-133-20557-00-00 MD 8175 TVD 4828 Completion Date 2/3/2006 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION / Mud Log Yes Samples No Directional Surve Yes ` DATA INFORMATION Types Electric or Other Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Si ngle Arm Caliper jdata taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run interval OH / Type Med/Frmt Number Name Scate Media No Start Stop CH Received Comments C Pdf 13453 Airectional Survey 0 0 1!31/2006 DIRECTIONAL SURVEY / PDF FORMAT QED C Pdf 13453 Mud Log 2 50 8150 1/31/2006 MUD LOGS X 3 QED C Wrd 13453 Report: Final Well R 1/31/2006 Final Well Report QED C Wrd 13453~Report: Final Well R 1/31/2006 Final Well Report .~D C Tf 13453/ Induction/Resistivity 650 8164 1/31/2006 MD ARRAY INDUCTION FOCUSED ELETRIC ~~ -QED G 13453) 0 0 1/31/2006 AS BUILT/DIRECTIONAL SURVEY/DRILLING REPORTlMUD LOGS/PERMIT DATA/PRECISION WELL ' DATA/WELLBORE DIAGRAM PDF/EXEULAS/LIS/WORD I'I lTIF/BITMAP FILE 1 Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Co ments Cuttings 3300 8175 1199 Cores and/or Samples are required to be submitted. This record automatically created ~' from Permit to Drill Module on: 11125/2005. DATA SUBMITTAL COMPLIANCE REPORT 5/12/2008 Permit to Drill 2051900 Well Name/No. NINILCHIK UNIT G OSKOLKOFF 4 Operator MARATHON OIL CO MD 8175 TVD 4828 ADDITIONAL INFORMATION Well Cored? Y~ Chips Received? 1~`hPl, Analysis ~'-T'1~ Received? Comments: Compliance Reviewed By: Completion Date 2!3!2006 Completion Status 1-GAS Current Status 1-GAS Daily History Received? ~ N Formation Tops ~ i N API No. 50-133-20557-00-00 UIC N Date: _ _ s MARATHON ~aska Business Unit Domestic Production Marathon Oil Company November 15, 2006 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 Reference: Completion Report 10-407 for Permit #205-190 Field: Ninilchik Unit, Infield Wildcat (Beluga ~ Tyonek Pool) Well: Grassim Oskolkoff #4 Dear Mr. Aubert: Enclosed please find the Well Completion Report with associated attachments for Grassim Oskolkoff Well No. 4. This well has been completed cased hole with a 3.5" Excape monobore production string to surface. Only two of the seven excape modules were completed due to poor cement bond issues. The well is currently shut in and will not flow commercial quantities of gas. Prior to any future well work, Marathon will submit Sundry form 10-403 for AOGCC approval. I apologize for the delay in getting this completion notice to you. If additional information is required, please contact me at 713-232-9347 or 713-296-2730 or by email, JRThompson@MarathonOil.com. Sincerely, >~ i':y ~ames R. Thompson Senior Completions Engineer JRT/smw Attachments: AOGCC Form 10-407 Directional Survey Wellbore Diagram Well Operations Summary 11/15/2006 1:55:12 PM ~ ~ ~ ~, ~ ~~; :- „~;r STATE OF ALASKA ALASKA~AND GAS CONSERVATION COMMISSI '' ~`"~ WELL COMPLETION OR RECOMPLETION REPORT A1~1~ LOC , ~ ~. 1a. Well Status: Oil Gas ~ Plugged Abandoned 20AAC25.105 GINJ^ WINJ^ WDSPL^ No. of Completions Suspended WAG 2oAAC2s.11o 1 Other 1b. Well Class: Development ^~ Exploratory Service ^ StratigraphicTest^ 2.Operator Name: Marathon Oil Company 5. Date Comp., Susp ~~,,~~~~ Aband.: ~6~~1~~R6d1ri~(° 12. Permit to Drill Number: 205-190 3. Address: P. O. Box 3128, Houston, TX 77253 6. Date Spudded: December 9, 2005 13. API Number: 50-133-20557-00 4a. Location of Well (Governmental Section): Surface: 3167' FSL, 2399' FWL, Sec. 23, T1 N, R13W, S.M. 7. Date TD Reached: December 24, 2005 14. Well Name and Number: Ninilchik Unit-Grassim Oskolkoff #4 Top of Productive Horizon: 1333.03' FNL, 1450.31' FWL, Sec. 23, T1 N, R13W, S.M. 8. KB Elevation (ft): 187' (RT-GL: 21.00') 15. FieldlPool(s): Ninilchik Unit Total Depth: 1187.86' FSL, 2430.97' FEL, Sec. 15, T1 N, R13W, S.M. 9. Plug Back Depth(MD+TVD): 8093' MD ! 4759' TVD (Beluga & Tyonek Pool} 4b. Location of Well (State Base Plane Coordinates): Surface: x- 229,135.56 y- 2,255,129.78 Zone- 4 10. Total Depth (MD +TVD): 8175' MD / 4828' TVD 16. Property Designation: ADL 389737 /ADL 384305 TPI: x- 228,204.68 y- 2,255,930.90 Zone- 4 Total Depth: x- 224,381.22 y- 2,258,538.49 Zone- 4 11. Depth Where SSSV Set: N/A 17. Land Use Permit: NA 18. Directional Survey: Yes ~ No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: NA 21. Logs Run: SP/GR-IEL-Density/Neutron-Sonic-Single Arm Caliper 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13 3/8 68# K-55 0 116' 0 116' Driven NA 9 5/8" 40# Laoisss 0 3284' 0 1471 12 114" 713 sks Type 1 3 1/2" 9.3# L-80 0 8130' 0 4790 8 112" 1100 sks Class G 23. Perforations open t o Produc tion (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) MD RKB TVD (RKB 3 1/2" 8130' NA Module 1: 7948-7962 4639-4651 Module 2: 7800-7810 4518-4526 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Modules 3 through 7 not completed d ue to poor cement quality DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Module 1:7948-7962' BJLightning V 1800 wtr based & 33,232 Ibs prop Module 2: 7800-7810' BJLightning V 1800 wtr based & 27,038 Ibs prop Modules 3 through 7 not completed due to poor cement quality 26. PRODUCTION TEST Date First Production: NA Method of Operation (Flowing, gas lift, etc.): SI -Not Flowin Date of Test: 6/12/2006 Hours Tested: 1.5 Production for Test Period Oil-Bbl: NA Gas-MCF: 0 Water-Bbl: 12 Choke Size: open Gas-Oil Ratio: NA Flow Tubing Press. 100 Casing Press: 0 Calculated 24-Hour Rate ...~ Oil-Bbl: NA Gas-MCF: 0 Water-Bbl: 288 Oil Gravity -API (corr): NA 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''.._ , ~'~ ` _~ ~~;, k~~7`t( `~ `( Z~Q~ ~" ~ " None ( Y ~ y~ Form 10-407 Revised 12/2003 + t ! ~ ~ GO-4 AOGCC 10-407 Cm Lxls Date 1:40 PM CONTINUED ON REVERSE / _ 2$. GEOLOGIC MARKERS 29. RMATION TESTS NAME MD 7VD Include and briefly summarize to Its. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". Zone Top MD Top TVD Pressure Beluga 2007 1244 Tyonek T2 7800 4517 None Tyonek 6420 3391 Tyonek T2 7950 4641 None 30. List of Attachments: Directional Survey, Wellbore Diagram, Well Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: James R. Thompson Title: Senior Completions Engineer ~ Signature: . ~~~---- Phone: 713-296-2730 Date: 11!15/2006 INSTRUCTIONS Genera :~iis 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 weft sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". GO-4 AOGCC 10.407 Cmpl.xls 11/15/2006 1:40 PM ~i MARATHON Oil Company,MGO#4 M MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY LISTING Page 1 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ~r NJS INTE(1 Wellbore Name Created Last Revised I MGO#4 _ _ _ _ 12-Dec-2005 28-Dec-2005_ _ J Well Name Government ID Last Revised MGO#4 28-Jul-2005 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East ~ MGO#4 _ _ 2255129.7800 229135.5600 N60 9 52.5063 W151 29 13.6698 3180.14N _ __ 2406.14E Installation Name Eastin Northin Goord S stem Name North Ali nment ~ MGO _ 226657.8540 2252005.1620 AK-4 on NORTH AMERICAN DATUM 1927 datum - __ True _ Field Name Eastin Northin Coord S stem Name North Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum _ _ True 'Created ~-- - -- -- ~- _ ~ --- Comments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oii Company,MGO#4 M MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) C] SURVEY LISTING Page 2 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 gp ~I~.a^ ~IQ#~F.S INTEQ -Weis ath Grid Re ort MD[ft] Inc[deg] Azi[deg] ND[ft] North[ft] East[ft] Dogleg de /100ft Vertical Section ft Fasting Northing 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 229135.56 2255129.78 138.00 2.10 4.90 137.97 2.52N 0.22E 1.52 1.30 229135.83 2255132.29 199.00 6.90 6.00 198.76 7.28N 0.69E 7.87 3.71 229136.42 2255137.04 259.00 12.60 2.70 257.87 17.41 N 1.38E 9.54 9.10 229137.33 2255147.15 319.00 18.00 359.70 315.73 33.23N 1.64E 9.09 18.18 229137.95 2255162.96 378.00 21.30 356.00 371.28 53.04N 0.84E 5.97 30.46 229137.60 2255182.79 440.00 23.70 350.40 428.57 76.57N 2.02W 5.19 46.59 229135.26 2255206.37 500.00 25.30 345.70 483.17 100.88N 7.20W 4.20 65.06 229130.64 2255230.80 562.00 25.80 340.30 539.11 126.43N 15.02W 3.84 86.38 229123.39 2255256.51 623.00 26.50 332.50 593.88 151.OON 25.78W 5.75 109.52 229113.19 2255281.32 683.00 27.60 322.10 647.35 173.86N 40.51 W 8.08 134.87 229098.98 2255304.50 743.00 29.70 313.20 700.03 195.01N 59.89W 7.92 162.98 229080.07 2255326.09 808.00 31.50 309.00 755.98 216.73N 84.83W 4.30 195.91 229055.63 2255348.36 871.00 32.80 310.30 809.32 238.12N 110.64W 2.34 229.37 229030.31 2255370.33 934.00 35.60 309.10 861.42 260.73N 137.89W 4.57 264.70 229003.58 2255393.54 998.00 40.00 306.20 911.98 284.64N 168.96W 7.41 303.89 228973.05 2255418.15 1060.00 42.60 305.10 958.56 308.48N 202.22W 4.35 344.80 228940.34 2255442.73 1121.00 48.10 305.20 1001.41 333.45N 237.68W 9.02 388.18 228905.45 2255468.49 1183.00 54.80 303.50 1040.03 360.77N 277.71W 11.02 436.62 228866.05 2255496.70 1245.00 60.60 303.90 1073.14 389.84N 321.29W 9.37 488.96 228823.14 2255526.74 1308.00 65.20 303.40 1101.83 420.90N 367.96W 7.34 544.98 228777.17 2255558.85 1370.00 71.70 302.00 1124.60 452.02N 416.47W 10.69 602.52 228729.38 2255591.06 1434.00 78.30 301.60 1141.15 484.58N 468.98W 10.33 664.14 228677.61 2255624.79 1498.00 80.30 299.40 1153.04 516.49N 523.16W 4.60 726.74 228624.17 2255657.91 1561.00 79.70 299.60 1163.97 547.04N 577.16W 1.00 788.39 228570.87 2255689.67 1621.00 79.50 298.70 1174.81 575.79N 628.70W 1.51 846.99 228519.99 2255719.56 1686.00 78.90 300.50 1186.99 607.32N 684.22W 2.87 910.44 228465.20 2255752.34 1748.00 79.80 303.80 1198.45 639.74N 735.79W 5.43 971.23 228414.37 2255785.91 1812.00 80.20 304.00 1209.56 674.89N 788.11 W 0.70 1034.22 228362.86 2255822.24 1876.00 79.40 303.60 1220.90 709.94N 840.45W 1.39 1097.16 228311.32 2255858.44 1939.00 79.10 303.40 1232.65 744.10N 892.06W 0.57 1159.00 228260.49 2255893.76 2004.00 81.60 301.40 1243.54 778.42N 946.16W 4.90 1222.95 228207.18 2255929.30 2128.00 82.00 301.40 1261.23 842.37N 1050.92W 0.32 1345.29 228103.89 2255995.58 2255.00 82.80 301.30 1278.02 907.86N 1158.43W 0.63 1470.77 227997.89 2256063.48 2318.00 83.00 301.50 1285.81 940.43N 1211.79W 0.45 1533.09 227945.28 2256097.24 2381.00 80.80 300.60 1294.69 972.60N 1265.22W 3.77 1595.23 227892.58 2256130.60 2444.00 80.10 301.00 1305.14 1004.41N 1318.58W 1.28 1657.10 227839.95 2256163.61 2510.00 79.40 300.90 1316.88 1037.82N 1374.28W 1.07 1721.80 227785.02 2256198.25 2573.00 79.50 300.20 1328.42 1069.30N 1427.62W 1.10 1783.46 227732.40 2256230.93 2636.00 79.70 300.70 1339.79 1100.70N 1481.04W 0.84 1845.14 227679.71 2256263.52 2698.00 79.30 300.50 1351.09 1131.73N 1533.51 W 0.72 1905.84 227627.95 2256295.73 2761.00 78.30 300.10 1363.33 1162.91N 1586.87W 1.71 1967.34 227575.31 2256328.10 2824.00 78.20 300.20 1376.16 1193.89N 1640.20W 0.22 2028.70 227522.68 2256360.27 2951.00 78.40 300.10 1401.91 1256.35N 1747.74W 0.18 2152.42 227416.58 2256425.14 3075.00 77.50 299.80 1427.80 1316.90N 1852.81 W 0.76 2273.03 227312.90 2256488.03 3225.00 78.40 299.30 1459.11 1389.24N 1980.42W 0.68 2418.80 227186.95 2256563.23 3292.00 78.30 299.10 1472.64 1421.25N 2037.70W 0.33 2483.97 227130.41 2256596.52 3353.00 77.30 299.20 1485.53 1450.30N 2089.77W 1.65 2543.17 227079.01 2256626.73 3417.00 76.20 299.40 1500.20 1480.78N 2144.10W 1.75 2605.05 227025.38 2256658.43 3480.00 74.30 299.80 1516.24 1510.87N 2197.07W 3.08 2665.59 226973.10 2256689.71 3543.00 72.50 300.40 1534.24 1541.15N 2249.30W 3.00 2725.65 226921.57 2256721.15 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) :7 SURVEY LISTING Page 3 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ~It~ 1NfiEQ We lt ath G rid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ftJ East[ft] Dogleg de /100ft Vertical. Section ft Fasting Northing ` 3604 .00 70 .40 300 .00 1553 .64 1570 .24N 2299. 28W 3.50 2783. 19 226872 .26 2256751. 36 3668. 00 68 .40 300 .50 1576 .16 1600 .41 N 2351. 03W 3.21 2842. 79 226821 .20 2256782. 69 3731 .00 66 .80 301 .40 1600. 17 1630. 37N 2400. 98W 2.86 2900. 82 226771 .94 2256813. 76 3794 .00 65 .40 303 .00 1625. 69 1661 .05N 2449. 72W 3.21 2958. 29 226723 .90 2256845. 53 3857 .00 64 .00 305 .50 1652. 62 1693 .10N 2496. SOW 4.22 3015. 21 226677 .56 2256878. 63 3921 .00 62 .30 305 .50 1681 .52 1726 .26N 2543. 28W 2.66 3072. 31 226631 .84 2256912. 83 3984 .00 61 .90 306 .70 1711 .00 1759 .06N 2588. 27W 1.80 3127. 98 226587 .60 2256946. 63 4048 .00 61 .70 306 .60 1741.25 1792 .73N 2633. 52W 0.34 3184. 38 226543 .12 2256981. 31 4111 .00 61 .80 306 .60 1771. 07 1825 .82N 2678. 07W 0.16 3239. 87 226499 .32 2257015. 39 4175 .00 61 .90 307 .50 1801 .26 1859 .81 N 2723. 11 W 1.25 3296. 29 226455 .06 2257050. 40 4238 .00 61 .60 308 .20 1831 .08 1893 .87N 2766. 93W 1.09 3351. 76 226412 .02 2257085. 43 4300 .00 60 .20 307 .10 1861 .23 1926 .96N 2809. 82W 2.74 3405. 91 226369 .89 2257119. 47 4363 .00 58 .90 306 .10 1893 .16 1959 .34N 2853. 42W 2.48 3460. 21 226327 .03 2257152. 83 4426 .00 57 .90 306 .60 1926. 17 1991 .14N 2896. 63W 1.73 3513. 87 226284 .54 2257185. 60 4489 .00 56 .60 306 .10 1960. 25 2022 .55N 2939. 31 W 2.17 3566. 85 226242 .59 2257217. 96 4552 .00 55 .30 304 .40 1995 .53 2052 .68N 2981. 93W 3.04 3619. 04 226200 .66 2257249. 04 4616 .00 54 .30 304 .10 2032 .42 2082 .11N 3025. 15W 1.61 3671. 31 226158 .11 2257279. 43 4678 .00 53 .20 303 .70 2069 .08 2110 .OON 3066. 65W 1.85 3721. 28 226117 .25 2257308.25 4741 .00 51 .90 304 .10 2107. 39 2137 .89N 3108. 17W 2.12 3771. 26 226076 .37 2257337. 07 4804 .00 50 .60 303 .50 2146. 82 2165 .23N 3148. 99W 2.19 3820. 36 226036 .17 2257365. 31 4866 .00 49 .40 303 .50 2186 .67 2191 .44N 3188. 60W 1.94 3867. 81 225997 .17 2257392. 41 4929 .00 48 .30 303 .20 2228 .13 2217 .52N 3228. 22W 1.78 3915. 20 225958 .14 2257419. 38 4993 .00 47 .30 304 .40 2271 .12 2243 .89N 3267. 62W 2.09 3962. 57 225919 .35 2257446. 63 5056 .00 46 .10 302 .90 2314 .32 2269 .30N 3305. 78W 2.57 4008. 38 225881 .77 2257472. 89 5119 .00 45 .10 304 .60 2358. 40 2294 .30N 3343. 21 W 2.50 4053. 36 225844 .92 2257498.72 5183 .00 43 .90 304 .30 2404 .05 2319 .68N 3380. 20W 1.90 4098. 20 225808 .51 2257524. 93 5246 .00 42 .70 302 .90 2449 .90 2343 .59N 3416. 18W 2.44 4141. 37 225773 .07 2257549. 64 5310 .00 41 .50 304 .10 2497 .39 2367 .26N 3451. 96W 2.26 4184. 23 225737 .84 2257574. 12 5373 .00 40 .20 303 .00 2545 .04 2390 .04N 3486. 30W 2.36 4225. 40 225704 .02 2257597. 66 5436 .00 39 .10 303 .00 2593. 55 2411 .94N 3520. 01 W 1.75 4265. 55 225670 .81 2257620. 31 5499 .00 38 .20 303 .60 2642 .75 2433 .54N 3552. 90W 1.55 4304. 85 225638 .42 2257642. 65 5563 .00 37 .50 303 .30 2693 .28 2455 .18N 3585. 66W 1.13 4344. 08 225606 .15 2257665. 02 5626 .00 36 .00 303 .40 2743 .76 2475 .91 N 3617. 15W 2.38 4381. 74 225575 .14 2257686. 45 5688 .00 35 .20 304 .00 2794 .18 2495 .93N 3647. 18W 1.41 4417. 80 225545 .57 2257707. 14 5814 .00 35 .50 305 .70 2896 .95 2537 .59N 3706. 99W 0.82 4490. 68 225486 .71 2257750. 13 5940 .00 35 .30 305 .40 2999 .65 2580 .02N 3766. 38W 0.21 4563. 67 225428 .29 2257793. 90 6065 .00 35 .30 305 .30 3101 .67 2621 .81 N 3825. 29W 0.05 4635. 90 225370 .33 2257837. 00 6191 .00 35 .40 306 .70 3204 .44 2664 .66N 3884. 27W 0.65 4708. 79 225312 .34 2257881. 17 6318 .00 35 .40 306 .60 3307 .96 2708 .58N 3943. 29W 0.05 4782. 36 225254 .32 2257926. 40 6445 .00 35 .20 305 .60 3411 .61 2751 .82N 4002. 58W 0.48 4855. 74 225196 .02 2257970. 96 6570 .00 35 .30 306 .20 3513 .69 2794 .12N 4061. 02W 0.29 4927. 88 225138 .55 2258014. 57 6697 .00 35 .20 305 .20 3617 .41 2836 .89N 4120. 54W 0.46 5001. 18 225080 .01 2258058. 67 6824 .00 35 .40 306 .20 3721 .06 2879 .72N 4180. 14W 0.48 5074. 56 225021 .39 2258102. 82 6950 .00 35 .40 305 .70 3823 .76 2922 .57N 4239. 23W 0.23 5147. 55 224963 .29 2258146. 99 7076 .00 35 .40 306 .00 3926 .47 2965 .31N 4298. 39W 0.14 5220. 54 224905 .10 2258191. 06 7203 .00 35 .20 304 .00 4030 .12 3007 .40N 4358. 49W 0.92 5293. 91 224845 .96 2258234. 49 7329 .00 35 .30 304 .20 4133 .02 304$ .17N 4418. 71 W 0.12 5366. 59 224786 .68 2258276. 61 7455 .00 35 .40 302 .70 4235 .79 3088 .35N 4479. 53W 0.69 5439.42 224726 .78 2258318. 15 7580 .00 35 .20 301 .50 4337 .81 3126 .74N 4540. 72W 0.58 5511. 48 224666 .47 2258357. 90 7665 .00 35 .30 301 .90 4407 .23 3152 .52N 4582. 46W 0.30 5560. 41 224625 .33 2258384. 61 7748 .00 35 .30 301 .70 4474 .97 3177 .79N 4623. 22W 0.14 5608. 24 224585 .14 2258410. 79 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY LISTING Page 4 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 gp~~f~ ~itS NTEQ Well ath Grid Re ort i MD[ft} 1nc[deg] Azi[deg] TVD[ft} North[ft] East[ft] Dogleg :Vertical de /100ft Section ft Fasting Northing 7909.00 34.30 300.80 4607.17 3225.46N 4701.76W 0.70 5699.82 224507.69 2258460.22 8001.00 34.40 300.90 4683.13 3252.08N 4746.33W 0.12 5751.52 224463.74 2258487.84 8122.00 33.50 299.90 4783.50 3286.28N 4804.61 W 0.88 5818.78 224406.25 2258523.34 8175.00 33.50 299.90 4827.69 3300.86N 4829.97W 0.00 5847.87 224381.22 2258538.49 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) SURVEY LISTING Page 5 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ~Ga~ iNTEt1 Comments MD ft TVD ft North ft East ft Comment 8175.00 4827.69 3300.86N 4829.97W _ _ _ _ _ _ _ Protection to TD_ _ _ Hole Sections Diameter in Start MD ft Start fiVD ft Start North ft Start East ft End MD ft End TVD ft End North ft Start East ft Wellbore 121/4 120.00 119.98 1.91N 0.16E 3300.00 1474.27 1425.06N 2044.55W MGO#4 81/2 3300.00 1474.27 1425.06N 2044.55W 8175.00 4827.69 3300.86N 4829.97W MGO#4 Casin s Name .Top MD ft Top TVD ft Top. North ft Top East ft Shoe MD ft Shoe TVD ft Shoe North ft Shoe East ft Wellbore 13 3/8" Conductor 0.00 0.00 O.OON 0.00E 116.00 115.98 1.78N 0.15E MGO#4 9 5/8" Casin 0.00 0.00 O.OON 0.00E 3283.00 1470.82 1416.97N 2030.OOW MGO#4 3 1i2" Liner 0.00 0.00 O.OON 0.00E 8175.00 4827.69 3300.86N 4829.97W MGO#4 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated API: 50-133-20557-00 RT-GL: 21.00' RT-TH F: 21.70' 3167' FSL, 2399' FWL, Sec. 23, T1 N, R13W, S.M. Tree cxn =4-3/4" Otis TOC (est.) - 500' above 9-5/8" shoe - Ceramic flapper valves below each module as follows: Module 1 - NA Module 2 - 7819' Module 3 - 7313' (NA) Module 4 - 7211' (NA) Module 5 - 6789' (NA) Module 6 - 6719' (NA) Module 7 - 6459' (NA) G O #4 ~ M nawRwTUOM Drive Pipe: 13-3/8"", 68 ppf, K-55 to 116 ' Surface Casing: 9-5/8", 40 ppf, L-80/S-95, BTC @ 3284' Cmt w/ 713 sx. of Type 1 at 12 PP9• Prod. Tubing: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 8130' Cmt w/ 1100 sx of class G at 12.7 ppg - 7 Excape modules placed - Green control line fired module 1 - Red contol line fired modules 2 thru 7 - Ceramic flapper valves below each module except for module 1 Module 1 - 7950-7960' (Open) Module 2 - 7800-7810' (Open) Module 3 - 7294-7304' (Not shot) Module 4 - 7193-7203' (Not Shot) Module 5 - 6769-6779' (Not Shot) Module 6 - 6700-6710' (Not Shot) Module 7 - 6440-6450' (Not Shot) Well Name 8 Number: GO #4 Lease: Ninilchik Gas Field County or Parish: State/Prov. Alaska Country: USA Perforations (MD) See Above (TVD) Angle/Perfs Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: 2/2/2006 Prepared By: J. R. Thompson Last Revison Date: 11/15/2006 TD - 8175' PBTD - 8093' • • Marathon Oil Company - Page 1 of 5 Operations Swmmary Repor# Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL DRILLING Start: 12!412005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To 'Hours Code Phase Description of Operations Code 12/6/2005 18:00 - 06:00 12.00 RURD_ RIG_ MIRU PJSM, load out all rig loads, move in on GO #4. Repair carrier while load out. Delay due to nightfall, (permitting) Move = 10%, Rig Up = 5% 12/7/2005 06:00 - 06:00 24.00 RURD_ RIG_ MIRU PJSM, complete load out, move in on GO #4. Offload and spot all major components 1 modules. Begin make up plumbing /elect / hyd connections. Camp 100% move, 100% rig up. Rig 100% move, 50% rig up. No acc / do time 12/8/2005 06:00 - 06:00 24.00 RURD_ RIG_ MIRU PJSM, offload / spot remaining modules. M/U elect and plumbing connections, test same. Pick up top drive. Move = 100%, Rig up = 90% No acc / do time 12/9/2005 06:00 - 00:00 18.00 RURD_ RIG_ MIRU PJSM. Complete rig up of Glacier #1 on GO #4. Run in all pumps and test all connections. 00:00 - 02:30 2.50 RURD_ CSG_ STRCSG PJSM, Place drive hammer on floor, RU same. 02:30 - 03:30 1.00 DRILL_ HAMR STRCSG PJSM, commence drive 13 3/8 conductor to 31 ft (RKB). 03:30 - 06:00 2.50 DRILL_ HAMR STRCSG Cut 20 ft jts, re-align, modify alignment guides. Accept Glacier rig #1, this date, 0000 hrs 12/10/2005 06:00 - 07:30 1.50 DRIVE_ CSG_ STRCSG PJSM, drive 13 3/8 conductor to 58 ft RKB (refusal). 07:30 - 08:30 1.00 RURD_ CSG_ STRCSG Rig do drive hammer, clear floor. 08:30 - 13:30 5.00 RURD_ OTHR STRCSG Rig up floor, prepare for rotary drill out of 13 3!8" drive shoe with 12 1/4" assembly. 13:30 - 15:00 1.50 PULD BHA_ STRCSG PJSM, MU 12 1/4" BHA for 13 3/8" drive shoe drill out. 15:00 - 18:00 3.00 DRILL_ ROT_ STRCSG Spud well. Drill! 12 1/4" hole from 29' to 120 ft. Boulders and rocks at shoe (58 ft) to 120 ft. No losses, wellbore clean. 18:00 - 18:30 0.50 CIRC_ MUD_ STRCSG Circ clean 18:30 - 19:00 0.50 TRIP_ BHA_ STRCSG Stand back BHA, break bit. 19:00 - 05:30 10.50 DRIVE_ CSG_ STRCSG PJSM, PU hammer, resume drive 13 3/8 conductor 58 - 116 ft RKB (refusal) 05:30 - 06:00 0.50 RURD_ CSG_ STRCSG Lay do hammer, all related equip, release unit. 12!11/2005 06:00 - 10:00 4.00 NUND WLHD SURDRL PJSM. Cut 13 3!8" drive pipe. Install "multi bowl" wellhead. Test wellhead to 1500 psi / 10 min. Test successful. 10:00 - 23:00 13.00 NUND BOPE SURDRL PJSM, NU diverter /BOP system 23:00 - 00:00 1.00 TEST_ BOPE SURDRL Test Diverter. Test was successful. Test witnessed by Mr Lou Grimaldi AOGCC 00:00 - 01:30 1.50 NUND BOPE SURDRL Complete NU BOPE (flowline /drip pan) 01:30 - 06:00 4.50 PULD_ DP_ SURDRL PJSM. Strap 5" drill pipe and commence picking up same for surface section. No acc / do time. 12!12/2005 06:00 - 07:30 1.50 PULD_ DP_ SURDRL Continue to strap, drift & pickup 5 " drillpipe. Stand back in derrick. Pick up total Of 100 Jts. 07:30 - 08:00 0.50 TRIP_ BHA_ SURDRL PJSM; M/U 12 1/4" Mill assembly to clean out drive pipe. 08:00 - 09:00 1.00 CLNOUT CSG_ SURDRL Mill & clean out drive pipe from 98' To 120'. Shoe clean. No problems with conductor shoe. There were trace amounts of metal at shakers. 09:00 - 09:30 0.50 CIRC_ MUD_ SURDRL Circulate gravel and fill out of conductor at 120' (tight hole). 09:30 - 10:30 1.00 TRIP_ BHA_ SURDRL Pull out of hole and lay down Mill Bha. 10:30 - 12:00 1.50 CLEAN_ RIG_ SURDRL Clear/Clean Rig Floor 12:00 - 14:30 2.50 TRIP_ BHA_ SURDRL M/U 12 1/4" directional assuembly. Run in hole to 120'. It was slow going. Changed motor to 1.5 deg. 14:30 - 15:30 1.00 CIRC_ MUD_ SURDRL Circulate and cond mud @120'. Mud became floculated prior to drill out of the conductor, while adding Klaguard. Mix Desco and water to thin out. 15:30 - 21:30 6.00 DRILL ROT SURDRL Slide drill from 120' to 548'. Printed: 11/15/2006 1:50:16 PM • • Marathon Oil Company `Page 2 of 5 Opelrations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10!2005 Event Name: ORIGINAL DRILLING Start: 12/4/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Phase Description of Operations Code 12/12/2005 15:30 - 21:30 6.00 DRILL_ ROT_ SURDRL Note: Shaker screens blinding off due to sand. Reduce circulation rate to 400 Gpm. Control! drill at 100 Fph. Mud loss over shaker's is 50 bbls per hr. ART= .5 hr. AST= 3.75hr. 21:30 - 22:30 1.00 CIRC_ MUD_ SURDRL Reduce circulation rate and change shaker screens from 150 to 120 Mesh. Transfer mud from cuttings tank back to active system. Circ over shakers. 22:30 - 02:00 3.50 DRILL_ ROT_ SURDRL Slide drill from 548' to 739'. Continue to control! drill at 100fph and 400 GPM pump rate due to shaker screens blinding off due to sand and large mud volume loss over shakers. ART= .4 hr. AST= 1.3 02:00 - 02:30 0.50 CIRC_ MUD_ SURDRL Circulate and change out shaker screens on # 2 shaker from 125 mesh to 110 mesh. After screen change mud loss over shakers reduced to 10 to 15 bbls per hour. 02:30 - 06:00 3.50 DRILL_ ROT_ SURDRL Slide drill from 739' to 929'. Continue to control) drill at 100 fph with pump rate Of 400 gpm. ART=.4hr. AST= 1.4 hr. No gain or toss to hole. Tq 8~ Drag Normal No acc J do time 12/13/2005 06:00 - 10:00 4.00 DRILL_ ROT_ SURDRL Slide drill from 929' to 1116'. Continue to control! drill 100' To 150' fph. Increase pump pate to 440 gpm. Loss over shakers is 10 bbl per hr. No G/L Normal Torque & Drag. ART= .25 AST=1.5 10:00 - 10:30 0.50 CIRC_ MUD_ SURDRL Circulate bottom up two times @ 420 Gpm 216 spm 700, psi. Returns over shakers 80% sand and 20% ash & volcanics. 10:30 - 12:00 1.50 TRIP DP_ SURDRL F{ow check. Pull out of hole for BHA change with D/P F- 1116' T/ 805'. No gain or loss. No excessive torque /drag. Hole slick 12:00 - 13:00 1.00 TRIP_ BHA_ SURDRL Flow check. Pull out of hole for BHA change. Lay down string stablizer. 13:00 - 13:30 0.50 TRIP_ TOOL SURDRL Re-orient motor and check bit 13:30 - 14:00 0.50 SERVIC RIG_ SURDRL Service drawworks, carrier, blocks, and crown. 14;00 - 14:30 0.50 TRIP_ BHA_ SURDRL Flow check. TIH with BHA to 120'. 14:30 - 15:00 0.50 CUT_ WIRE SURDRL PJSM; Slip Drilling tine 15:00 - 16:00 1.00 TRIP_ DP_ SURDRL Flow check, TIH W 5" D/P To 1116'. No gain/ loss -correct displacement 16:00 - 16:30 0.50 CIRC_ MUD_ SURDRL Circ & Cond. mud at 1116', 420 gpm, 216 spm, and 700psi. 16:30 - 02:00 9.50 DRILL_ ROT_ SURDRL Drill Slide F-1116' T- 1487' Continue To Control Drill Slide @ 100' T-150' per Hr Pump Rate 226 spm= 444 gpm 02:00 - 02:30 0.50 CIRC_ MUD_ SURDRL Circ, C/O Shaker Screens F- 150 Mesh 70 110 Mesh On # 2 Shaker 02:30 - 06:00 3.50 DRILL_ ROT_ SURDRL Drill Slide F- 1487' To 1738'. Control drill at 100 to 150fph and pump rate 226 spm, 444 gpm, and 700psi. No gian or loss and torque & drag normal. Last 24 hr. AST=8.1 ART= 2.4. No acc 1 do time 12/14/2005 06:00 - 07:30 1.50 DRILL_ ROT_ SURDRL Drill rotate from 1738' to 1801' @ 150fph with 216 spm, 430 gpm, and 800 psi pump rate. ART= 1 AST=O No G/L Tq 3-5k 07:30 - 08:30 1.00 CIRC_ MUD_ SURDRL Pump Hi Vis Sweep @ 1801'. Circ @ 440 gpm, 220 spm, 840 psi. Sweep returned with 100% increase In cuttings over shakers. 08:30 - 11:30 3.00 TRIP_ DP_ SURDRL Check flow. Pull out of hole. Pump out from 1801' to 1551' due to tight hole. 11:30 - 12:30 1.00 TRIP_ DP_ SURDRL Pull out of hole from 1551' without pump. Hole slick. No gain or loss or excessive drag. 12:30 - 14:00 1.50 TRIP_ BHA_ SURDRL Pull out of hole with BHA. Add W!B slab and pony collar. Reset motor from 1.5 AKO to 1.3 AKO. TIH to 120'. 14:00 - 19:00 5.00 CLEAN_ RIG_ SURDRL Blow down rig water, steam and mud lines. Shut down all electrical systems on rig. Repair main breaker and connector to # 3 mud pump. Change out shaker screens to 1-140 mesh & 2- 110 mesh on both shakers. 19:00 - 20:00 1.00 TRIP_ DP_ SURDRL TIH with BHA #4 drilling assy from 120' to 1801'. Slick to bottom. No Fill. Printed: 11/15/2006 1:50:16 PM • • Marathon OiI Company Page 3 of 5 Operations-Sulmrnary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL DRILLING Start: 12/4/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To `Hours Code Phase Desbription of Operations Code 12/14/2005 20:00 - 20:30 0.50 CIRC MUD_ SURDRL Circ. Pump Hi Vis Sweep W Pump Rate Of 640 GPM 110 Spm, and 1650psi At 1801'. Heavy returns over shakers. Pump pressure decreased from 1650 To 1450 psi as shakers cleaned up. Drag decreased 5K on Up Dn & Rt Weight. No excessive mud loss over shakers. 20:30 - 06:00 9.50 DRILL_ ROT_ SURDRL Directionally drill from 1801' to 2470'. Pump sweep at 2450 with 330 spm, 650 gpm, and 1450psi 15% increase In cuttings over shakers. No gain or loss, drag or swab.ART = 4.2 hrs, AST = 2.7 hrs No acc / do time 5 hrs 12/15/2005 06:00 - 00:30 18.50 DRILL_ ROT_ SURDRL Dir drill and survey from 2470' to 3300'. ART=13.1hrs AST=1.2hrs. Pump sweeps at 2470' and 3036' with small increase in cuttings. 00:30 - 01:30 1.00 CIRC_ MUD_ SURDRL Pump sweep and circ. clean. Flow check -hole static. 01:30 - 01:45 0.25 SAFETY MTG_ SURDRL Discuss near miss incident and tripping pipe JHA. 01:45 - 06:00 4.25 TRIP_ WIPR SURDRL POOH wet. Back ream: 2735' to 2675', 2510' to 2488', 2338' to 2304', 2231' to 1864'. POOH 1864' - 1100'. 1100' @ 06:OOhrs. 12/16/2005 06:00 - 07:00 1.00 TRIP_ WIPR SURDRL Cont. POOH to CSG shoe @ 116'. 07:00 - 08:00 1.00 SERVIC RIG_ SURDRL Service Top drive, blocks, crown, carrier motors, and drawworks brake linkage. 08:00 - 10:00 2.00 TRIP WIPR SURDRL RIH. Hit bridge at 1854'. Circulate and rotate through bridge. Top drive malfunctioned. 10:00 - 13:00 3.00 TRIP_ WIPR SURDRL POOH. Inspect BHA and bit(small amount of balling). 13:00 - 15:00 2.00 REPAIR RIG_ SURDRL Trouble shoot and repair engine throttle assignments(PLC). 15:00 - 17:30 2.50 TRIP_ WIPR SURDRL RIH to 3300'. Tight @ 1280', 1650', 1686'. Wash down 1717'-1779'. RIH tight @ 2050',2450', 2492'. Wash down 2515'-2526'. 17:30 - 19:00 1.50 CIRC_ MUD_ SURDRL Circ clean(CBUX3, 650gpm, 80RPM, 1750psi, 157 units trip gas, large volume of sand and clay across shakers). 19:00 - 22:00 3.00 CIRC_ MUD_ SURDRL Cont to circ. and reduce MW F/9.6ppg to 9.4ppg. 22:00 - 00:00 2.00 CIRC_ MUD_ SURDRL Cont. to circ. and add 6% lubtex to mud. String weights before Lubtex - Up 67K, Down 30K, Rotating 47 K, Torque 6-6.5 K. String weights after Lubtex Up 63 K, Down 32 K, Rotating 47 K, and torque 5-6K. Flow check and welt is static. 00:00 - 03:30 3.50 TRIP_ DP_ SURDRL Pull out of hole wet to 150' SLM. Hole in good condition. 03:30 - 05:30 2.00 TRIP_ WIPR SURDRL RIH to 3300' - no fill and hole is in good condition. 05:30 - 06:00 0.50 CIRC_ MUD_ SURDRL Circulate clean with 471gpm and 900psi. 12/17/2005 06:00 - 07:30 1.50 CIRC_ MUD_ SURDRL Cont. to circ. clean with 471 gpm, 900psi, and 80RPM. Carbide indicated 48% washout. 07:30 -11:00 3.50 TRIP_ DP_ SURDRL POOH -SLM, no correction. Hole in good condition. 11:00 - 13:00 2.00 PULD_ BHA_ SURDRL Lay down BHA and bit. 13:00 - 13:30 0.50 RUNPUL WBSH SURCSG Pull wear bushing. 13:30 -14:00 0.50 RURD_ CSG_ SURCSG Gauge run 13 3/8" X 9 5/8" CSG hanger and L/D. 14:00 - 17:30 3.50 CHANG EOIP SURCSG C/O to long bales. R/U casing running tools. Adjust torque tube. 17:30 - 18:30 1.00 RUN_ CSG_ SURCSG Bakerlok 9 5/8" shoe track. Pump through shoe track and check floats. 18:30 - 23:30 5.00 RUN_ CSG_ SURCSG Cont. to run 9 5/8" 40ppf L-80 and S-95 Butt CSG. Run total of 78 joints. Land out on 13 3/8" X9 5/8" vetco hanger with casing shoe @ 3284'. 23:30 - 00:30 1.00 CIRC_ MUD_ SURCSG Circ. and condition mud. 48units B/U gas. 00:30 - 01:30 1.00 RURD_ CSG_ SURCSG Rig down casing tools. 01:30 - 02:00 0.50 RURD_ CMT_ SURCSG Rig up BJ cement head. 02:00 - 04:30 2.50 PUMP_ CMT_ SURCSG Mix and pump 40bbls 8.4ppg mud clean ahead. Pump 5bbls water ahead. Test BJ lines to 2700psi. Release bottom plug. Mix and pump 713sxs Type "1" cement w/2°fobwoc CaCI, 22%bwoc LW-6, .3%bwoc CD-32, 1 gphs FP-6L, 1 %bwoc Sodium Metasilicate, 20%bwoc MPA-1 to yield 315bb1s 12ppg slurry. 04:30 - 05:30 1.00 PUMP_ CMT_ SURCSG Release top plug. Displace w/BJ unit 236bb1s 9.4ppg mud(4bbls over). Printed: 11/15/2006 1:50:16 PM • • Marathon Oil Company Rage 4 of 5 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL DRILLING Start: 12/4/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date. From - To Hours- Code Phase Description of Operations '` Code 12/17/2005 04:30 - 05:30 1,00 PUMP CMT_ SURCSG Did not bump plug. 100% returns W1110bb1s spacer contaminated mud and 130bb1s cement to surface. Check floats. 05:30 - 06:00 0.50 PUMP_ CMT_ SURCSG Flush cement from stack and lines. 12/18/2005 06:00 - 07:00 1.00 RURD_ CMT_ SURCSG R/D cement head and fill up tool. 07:00 - 09:00 2.00 CHANG EQIP SURCSG R/U DP elevators. P/U stand of 5" HWDP and 13 518" X 9 518" packoff. Set packoff and test to 5000psi/15min. 09:00 - 10:30 1.50 CLEAN_ TANK SURCSG Clean cement from cuttings tank and cellar. 10:30 -12:00 1.50 CHANG EQIP SURCSG Remove elevators and long bales. R/U rig floor for handling DP. 12:00 - 13:30 1.50 CHANG EOIP SURCSG PJSM. Cont. to R/U rig floor for handling DP. R/U short bales and DP elevators. R/D stabing board. Adjust top drive torque tube. 13:30 - 18:30 5.00 NUND BOPE SURCSG N/D diverter line, knife valves and diverter line adaptor spool . Install blind flange on diverter line outlet. Begin empty and clean pits. 18:30 - 19:00 0.50 REPAIR RIG_ SURCSG Replace hydraulic line to top drive grabber box. 19:00 - 20:00 1.00 TEST_ BOPE SURCSG R/U to test BOPE. 20:00 - 02:00 6.00 TEST_ BOPE SURCSG Test 2 7/8"X5 1/2" variable rams, 13 5/8" annular, upper and lower top drive valves, inner and nutter choke and kill line valve, TIW and IBOP valves, all choke manifold valves to 250/2000psi 5min. There were 2 failures on kill line valves, greased and tested OK. 02:00 - 03:00 1.00 TEST_ BOPE SURCSG L/D tesl tools. Set wear bushing. Begin mixing new flopro mud. 03:00 - 03:30 0.50 TEST_ CSG_ SURCSG Test 9 5/8" casing to 2000psi for 30min. 03:30 - 04:00 0.50 BLOWD EQIP SURCSG Blow down lines. 04:00 - 06:00 2.00 PULD_ DP_ SURCSG P/U 5" DP. 12/19/2005 06:00 - 13:00 7.00 PULD_ DP_ SURCSG Continue picking up 5" DP -total 140 jnts. Mix new flopro mud. 13:00 - 14:00 1.00 RURD_ OTHR SURCSG Rig up Autotrak surface equipment. 14:00 - 15:30 1.50 PULD_ DP_ SURCSG Pull out of hole and rack back DP. 15:30 - 18:30 3.00 TRIP_ BHA_ SURCSG PJSM. Pickup BHA#7. 18:30 - 20:30 2.00 TRIP_ DP_ SURCSG Run in hole to 2950'. Wash down to 3150' and tag cement. 20:30 - 22:30 2.00 DRILL_ CMT_ SURCSG Drill cement and shoe tract to 3284'. Clean old hole to 3300'. 22:30 - 23:00 0.50 DRILL_ ROT_ SURCSG Drill F/3300' to 3320'. 23:00 - 00:00 1.00 CIRC_ MUD_ SURCSG Circulate bottoms up. 00:00 - 01:30 1.50 CIRC_ MUD_ SURCSG PJSM. Mix and pump spacer. Displace well to new Flopro mud. 01:30 - 02:30 1.00 TEST_ LOT_ SURCSG Perform LOT to 17.2ppg EMW - 622psi 9.1 MW. 02:30 - 06:00 3.50 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 3300' to 3500' with ART=2.5hrs. Added 3%Lubtex. String weights before Lubtex: Up 85, DN 20, Rot45, and Torque 6-7. String weights after Lubtex: Up 75, DN 25, Rot 45, and Torque 5-6. 12/20/2005 06:00 - 06:00 24.00 DRILL_ ROT_ PR1 DRL Directionally dril{ and survey from 3500' to 5344' with ART=18.2hrs. 12/21/2005 06:00 - 08:30 2.50 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 5344 to 5534' with ART=1.6hrs. 08:30 - 10:30 2.00 CIRC_ MUD_ PR1 DRL Circulate clean. CBU four times with 560 GPM, 1920 psi, 53 RPM. Flow check and well is static. 10:30 - 14:30 4.00 TRIP_ WIPR PR1 DRL Pull out wet to 3273'. Tight @ 5226', 5211', 5086', 5071', 5036', 5018', 5005, 4981', 4970', 4967', 4960'. Back ream from 4963' to 4904'. Tight @ 4862', 4851', 4828', 4796', 4730', 4703', 4671', 4658', 4631', 4610', 4578', 4551', 4541', 4454', 4392', 4349', 4329', 4313', 4283', 4232', 4209', 4197', 4186'. Back ream from 4217'-4156'. 4093', 4038', 3985', 3883', 3665', 3541', 3417', 3357'. 14:30 -15:30 1.00 REPAIR RIG_ PR1DRL Pump up compensator on top drive. Change oil and filter on #2 generator. 15:30 - 17:00 1.50 SLPCUT DLIN PR1 DRL PJSM. Slip and cut drlg line. 17:00 - 18:00 1.00 SERVIC RIG_ PR1 DRL Service top drive, blocks, crown, carrier. Change oil and filter#2 mud pump. 18:00 - 19:30 1.50 TRIP_ WIPR PR1DRL RIH to 5470'. Wash and ream to 5533'. Pump hi-vis sweep around. 19:30 - 06:00 10.50 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 5533' to 6275' with ART=8.7hrs. 12/22/2005 06:00 - 21:00 15.00 DRILL_ ROT_ PR1 DRL Dir drill and survey F/6275' to 7180 (ART= 13.5hr.) Printed: 11/15/2006 1:50:16 PM • • Marathon Oil Company Page 5 of 5 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common WeN Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL DRILLING Start: 12/4/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Phase Description of Operations Date From- To ::Hours Code' C . ode 12!2212005 21:00 - 21:30 0.50 REPAIR RIG_ PR1 DRL Repair Drive Line To #2 Dennison Hyd. Pump 21:30 - 06:00 8.50 DRILL_ ROT_ PR1 DRL Dir Drill And Survey F/ 7180 To 7494(ART=4.9hrs). Pump sweeps to clean hole due to excessive torque. 12/23/2005 06:00 - 09:30 3.50 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 7494' to 7575' with ART=3.3 hrs. 09:30 - 16:30 7.00 DRILL_ ROT_ PR1 DRL Decision made to drill well deeper than planned. Directionally drill and survey from 7575' to 7702' with ART=6.5hrs. 16:30 - 18:30 2.00 CIRC_ MUD_ PR1 DRL Circulate bottoms up two times @ 7702' with 255 spm, 510 GPM, and 2000 PSI. Circulate shakers cleaned up. 18:30 - 20:00 1.50 TRIP_ DP_ PR1 DRL PJSM. Monitor well. POH Work tight spots from 7285' to 6389'. Back ream and wash from 6350' to 6288'. No Gain/ Loss/ Hole. Fill Correct 20:00 - 20:30 0.50 CIRC_ MUD_ PR1 DRL Circ B!U @ 6290' At 240 SPM 480 GPM 1750 PSI 20:30 - 02:00 5.50 TRIP_ DP_ PR1 DRL Continue pulling out of hole from 6290' To 797' (top of BHA). Back ream @ 6226' to 6162'. Work tight spots from 6112' to 5359'. Hole slick from 5359' To 3283' (9 5/8 Shoe). No Gain/ Loss Hole Fill Correct. 02:00 - 04:00 2.00 TRIP_ BHA_ PR1 DRL PJSM. Pull out of hole with Auto Track BHA and lay down. 04:00 - 04:30 0.50 SERVIC RIG_ PR1 DRL Service Rig, Top drive draw works, blocks, and carrier. 04:30 - 06:00 1.50 TRIP_ BHA_ PR1 DRL PJSM; Make up Bha. Pickup Bit, Motor, MWD, Pony DC, and W/B Stabs. Run in hole. 12/24/2005 06:00 - 10:30 4.50 TRIP_ DP_ PR1 DRL Continue running in hole with 5" DP. Tagged @ 7478'. 10:30 - 12:30 2.00 WASH FILL PR1 DRL Wash and ream to 7702'. 12:30 - 18:30 6.00 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 7702' to 7964'. No Gain/ Loss and ART= 5.8 hr. TG 215 units. 18:30 - 20:30 2.00 CIRC_ MUD_ PR1 DRL Circulate bottoms up for samples as per MOC Geology Department at 7964'. Extend T/D To 8175' with a verbal approval from AOGCC Eng. Winton Aubert. 20:30 - 02:30 6.00 DRILL_ ROT_ PR1 DRL Directionally drill and survey from 7964' To 8175'. No Gain/ Loss/ TQ 3000 3800 ART= 5.9 Hr. 02:30 - 03:30 1.00 CIRC_ MUD_ PR1 DRL Circulate bottoms up for samples as per MOC Geology Department at 8175'. Confirm T/D @ 8175' 03:30hr. 03:30 - 04:30 1.00 CIRC_ MUD_ PR1 DRL Circulate Hi Vis Sweep At 8175' @ 250spm 2050 psi 500 gpm. Shakers Cleaned Up 04:30 - 06:00 1.50 TRIP_ DP_ PR1 DRL PJSM. Monitor Well. POH (Wiper Trip) from 8179' To 7050' @ 0600. 12/25/2005 06:00 - 06:30 0.50 TRIP_ WIPR PR1 DRL POOH to 6500 -hole in good condition. 06:30 - 07:30 1.00 TRIP_ WIPR PRIDRL RIH to 8175'. 07:30 - 09:00 1.50 CIRC_ MUD_ PRi DRL Circulate clean -Circulate bottoms up two times, 1950 psi, 470 gpm, 350 units gas. Flow check and pump dry job. Drop 2.75" Rabbit. 09:00 - 14:00 5.00 TRIP_ BHA_ PR1 DRL POOH - SLM, no correction. 14:00 - 15:00 1.00 REPAIR RIG_ PR1 DRL Repair top drive hydraulic leak. 15:00 - 16:00 1.00 TRIP_ BHA_ PR1 DRL POOH UD bit and BHA. 16:00 - 02:00 10.00 REPAIR RIG_ PR1 DRL Repair top drive link tilt problem. Troubleshoot top drive robotics & hydralics system. 02:00 - 04;30 2.50 RURD_ ELEC PR1 EVL PJSM; P/U M/U Precision Logging BHA (Shuttle Assy.) 04:30 - 06:00 1.50 TRIP_ DP_ PR1 EVL TIH Precision shuttle assembly for drillpipe conveyed logging tools to 3150' @ 0600 hr. 12/26/2005 06:00 - 09:00 3.00 TRIP_ DP_ PR1 EVL Cont. RIH w/Precision DP conveyed logging tools. Circ. last stand to 8175'. POOH to 8070' 09:00 - 10:30 1.50 CIRC MUD_ PRi EVL Circulate out gas - 252 gpm, 1600 psi, 80 units trip gas. 10:30 - 11:30 1.00 CIRC_ MUD_ PR1 EVL Drop messenger and circ. down with positive indication of tool deployment. Pump dryjob. 11:30 - 17:30 6.00 TRIP_ DP_ PR1 EVL POOH logging Precision Squad Combo on 5"DP 17:30 - 19:00 1.50 RURD_ EOIP PR1 EVL PJSM; UD Precision Logging Tools. Printed: 11/15/2006 1:50:16 PM • • Marathon Oil Company Page 1 of 2 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/14/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 .Date From - To Hours Code Cod Phase Description of Opet•ations 12/26/2005 19:00 - 20:00 1.00 PULD_ BHA_ PR1 CSG PJSM. Make up 8 1/2" clean out BHA 20:00 - 21:00 1.00 TRIP_ BHA_ PR1 CSG Trip in hole with 5" Drillpipe To 3283'. No gains or losses. Correct displacement 21:00 - 21:30 0.50 SLPCUT DLIN PR1CSG PJSM; Slip and cut drilling line (30'). 21:30 - 22:30 1.00 SERVIC RIG_ PR1 CSG Service Rig, tube draw works, top drive blocks draw works and crown. Change out carrier denninson drive line. 22:30 - 00:00 1.50 TRIP_ BHA_ PR1CSG TIH W/ 5" Drillpipe F-3283' T- 8175'. No gains or losses with correct displacement. Hole Slick On Trip In 00:00 - 02:00 2.00 CIRC_ MUD_ PR1 CSG Circulate bottoms up two times and condition mud at 8175'. Flow rate - 520 gpm, 1850 psi, and 275 spm. B/U Gas 350 units. 02:00 - 05:30 3.50 TRIP_ BHA_ PR1 CSG PJSM. Monitor Well. Pull out of hole from 8175' to 3283'. No gains or loses. Normal Drag. Correct Hole Fill. 05:30 - 06:00 0.50 WAITON ORDR PR1 CSG Wait On MOC Geo.Dept. Log Analysis . 12127!2005 06:00 - 08:30 2.50 WAITON ORDR PR1 CSG Perform rig maintenance while waiting on orders. 08:30 - 21:00 12.50 TRIP_ DP_ PR1 CSG PJSM; Monilor well. Pull out of hole and lay down drill pipe and heavy weight drill pipe. 21:00 - 21:30 0.50 RUNPUL WBSH PR1 CSG R/U 8 Pull Wear Bushing 21:30 - 00:00 2.50 RURD_ CSG_ PR1CSG PJSM; Rig down tongs spinners clear floor of rotary tools. Change out bails and rig up Weatherford Csg. Tools 00:00 - 01:00 1.00 RURD_ CSG_ PR1 CSG PJSM; R/U Expro Control Lines And Tension Cable 01:00 - 06:00 5.00 RUN CSG_ PR1 CSG PJSM; Run 3 1/2 Excape System As Per MOC Program. 7 Modules Total . 2 Control Lines ~ 1 Tension Cable. Total Of 46 Jts To 1743' At 0600. 12/28/2005 06:00 - 08:00 2.00 RUN_ CSG_ PR1CSG Continue to run 3 1/2" 9.3ppf L-80 8rd-mod casing to 3260'. 96 Joints run. 08:00 - 09:00 1.00 CIRC_ MUD_ PR1 CSG Circulate casing - 195GPM, 470psi. 09:00 - 15:30 6.50 RUN_ CSG_ PRICSG Continue running casing to 8134' - total of 256 joints. 15:30 -17:00 1.50 CIRC_ MUD_ PR1CSG Rig up circulating head and circulate. 325 GPM,1855 psi 17:00 - 21:30 4.50 LOG_ OTHR PR1CSG PJSM. Rig up Expro WLS & RIH W/ G/R correlation log and confirm setting depth of modules. POH W/ E- line & R/D Final shoe depth after correlation adjust = 8130.58 ft Up wt = 85K, Dn = 45K 21:30 - 22:30 1.00 CIRC_ MUD_ PR1CSG Spot 200 bbls 10.1 Inhibited Flow Pro Mud Back Side Of 3 1/2 Csg. 22:30 - 01:00 2.50 PUMP_ CMT_ PRICSG PJSM; Cmt 3 1/2 Csg. Pump 5 bbls H2o, Test Lines 3000 psi. Mix/ Pump 45 bbls 10.5ppg MCS-4 Spacer,Mix/ Pump 1100 sks. (428 bbls.) " G". 12.7 ppg Cmt. Flush Lines W/ 5 bbls H2o. Drop Plug, Confirm Plug Droped. Displace W 70.3 bbls KCt. Bump Plug W 1575 psi, Hold F- 10 min Bleed Pressure Off, Floats Held. 100% Returns, no Gain/ Loss No Cmt to surface. Note: Recip Pipe During Pumping Operations. Plug Bumped. Cement in place @ 0045 Hr. 12/28/2005 01:00 - 02:00 1.00 RURD_ CMT_ PR1 CSG R/D BJ And Cmt Head, Blow Down Lines 02:00 - 06:00 4.00 NUND BOPE PR1 CSG PJSM; Flush Mud Lines,Stack, Choke & Mud Pumps R/D Drip Pan And Flow Nipple. N/D BOPE WOC (12 hr. ) 12/29/2005 06:00 - 00:00 18.00 WAITON CMT_ PR1 CSG WOC, Clean Pits, Begin Rig Down During Woc Time, Flush all Mud Lines,Steam Clean Cellar/ Sub, Pickle Mud Pumps R/D Pits, Prep MI, Epoch, BHI Units For Transport, Load Out Same. Clean Cuttings& Hanson Tanks. 00:00 - 01:30 1.50 NUND TREE PR1 CSG PJSM. Suspend 3 1/2 casing with 85 K. Cut casing, install slips, pack off. Test To 5000 psi/ 10 Min. Test Successful. 01:30 - 02:30 1.00 NUND BOPE PR1 CSG PJSM; Break BOP stack down 8~ load out. 02:30 - 03:30 1.00 NUND TREE PRICSG PJSM; Install production tree. 03:30 - 05:00 1.50 TEST_ TREE PR1CSG Test primary and secondary packoff to 5000 psi for 10 Min. Test tree to 10,000 for 10 Min. All tests successful. Pull TWC. Install BPV. Freeze Printed: 11!15!2006 1:53:48 PM • • Marathon fJil Company Page 2 of 2 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10(2005 Event Name: ORIGINAL COMPLETION Start: 12/14/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group; Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code ` Code Phase Description of Operations 12/29/2005 03:30 - 05:00 1.50 TEST_ TREE PR1 CSG protect tree. 05:00 - 06:00 1.00 RURD_ RIG_ RDMO PJSM; Rig Down G/D # 1 Prep For Move No acc / do time. 12/30/2005 06:00 - 06:00 24.00 RURD_ RIG_ RDMO Complete Rig Down, Prep. Loads For Transport To KBU 24-6 . No Accidents Near Miss Or Spills. PJSM on all phases of rig down. Note: Glacier Rig #1 Released From GO # 4 At 0600 Hr. 12/30/05 Printed: 11/15/2006 1:53:48 PM • • Marathon Oil Company Page 1 of 9 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To 'Hours Code Phase Description of Operations Code 1/26/2006 08:00 - 09:00 1.00 SAFETY MTG_ PR1 CSG Show up at SD pad and obtain work permit. Hold PJSM. 09:00 - 10:15 1.25 RURD_ ELEC PR1 CSG RU a-line and MU CBL and tractor tool string into lubricator. 10:15 - 10:30 0.25 RUNPUL ELEC PR1CSG RIH with CBL/tractor to 1450' RKB at stopped due to hole angle at 80 degrees. 10:30 - 10:45 0.25 LOG_ CSG_ PR1 CSG Obtain 200' of CBL in free pipe. RIH to 1496' RKB where tools stopped due to hole angle. 10:45 - 11:00 0.25 LOG_ CSG_ PR1 CSG Start tractor and RIH to 1513' RKB when electrical system shorted out. 11:00 - 11:15 0.25 LOG_ CSG_ PRICSG Trouble shoot electrical system in surface equipment. 11:15 - 11:45 0.50 RUNPUL ELEC PR1 CSG POOH with a-line and LD tools from lubricator. 11:45 - 12:30 0.75 TEST_ EQIP PR1CSG Test electircal system. Rope socket connection good. Line good. Tractor good and operational. Suspect E-line spool collector short. 12:30 - 14:00 1.50 RURD_ ELEC PRICSG RD a-line equipment. Secure well and close out permit. Leave location. 1/27/2006 06:00 - 18:00 12.00 RURD_ STIM CMPSTM Lay down matting and liner for frac equipment foot print. Move in and spot 5 frac tanks. Manifold same together. Move in and spot sand buster, choke manifold, and flowback tank. 1/29/2006 08:00 - 08:45 0.75 LOG_ CSG_ CMPSTM Arrive at GO pad. Hold PJSM and obtain work permit. Start filling up ftac tanks with GO pad well water. 08:45 - 09:45 1.00 RURD_ ELEC PR1 CSG RU lubricator. MU tractor and CBL tool assembly. 09:45 - 10:15 0.50 RUNPUL ELEC PR1 CSG RIH with CBL/Tractor. Log 200' free pipe from 1000' to 800'. RIH to 1644' where tools stopped due to hole angle. 10:15 - 11:00 0.75 RUNPUL ELEC PR1 CSG Activate tractor and tractor in hole from 1644' to 3700'. Shut down tractor. 11:00 - 11:30 0.50 RUNPUL ELEC PR1 CSG RIH to 8060'. Log repeat secction. RIH to 8060' 11:30 - 13:45 2.25 LOG_ CSG_ PRICSG Log hole with CBL to 650'. 13:45 - 14:00 0.25 RUNPUL ELEC PR1 CSG POOH with toots, RD CBL, and MU GR onto tractor. 14:00 - 14:15 0.25 RUNPUL ELEC PR1 CSG RIH ti 1666' where tools stopped due to hole angle. 14:15 - 14:45 0.50 RUNPUL ELEC PR1 CSG Activate tractor and tractor in hole to 3278' when tool string shorted out. 14:45 - 15:30 0.75 RUNPUL ELEC PRICSG POOH with tools. 15:30 - 16:15 0.75 INSPCT EQIP PRICSG Troubleshoot electrical system. Found short in rope socket. Rehead line and MU tool string and Test equipment on surface. 16:15 - 16:45 0.50 RUNPUL ELEC PRICSG RIH with GR and tractor to 1520' where tools stopped due to hole angle. 16:45 - 17:15 0.50 RUNPUL ELEC PR1 CSG Activate tractor and tractor tools in hole to 3700'. 17:15 -17:30 0.25 RUNPUL ELEC PR1 CSG RIH to 8060' 17:30 - 19:30 2.00 LOG_ GSG_ PR1CSG Log hole with GR from 8060 to 3200' 19:30 - 19:45 0.25 RUNPUL ELEC PR1CSG POOH with GR and tractor. 19:45 - 20:30 0.75 RURD_ ELEC PR1 CSG RD lubricator and tools. Secure well. Cloase out work permit and leave location. 20:30 - 06:00 9.50 RURD_ STIM CMPSTM Finish filling up frac tanks with water. 1/30/2006 08:00 - 06:00 22.00 RURD_ STIM CMPSTM Heat water in frac tanks prior to KCL mixing. 1/31/2006 06:00 - 18:00 12.00 RURD_ STIM CMPSTM Mix and heat 5 frac tanks with 6% KCL. Move in and stage well test equipment. Move in and stage CTU equipment 2/1/2006 06:00 - 13:00 7.00 RURD_ STIM CMPSTM Continue to heat 6% KCL in frac tanks. Spot well test equipment and start RU of well test lines and equipment. Start RU of CTU lines and equipment. Finish blowing sand and flex sand. 2/2/2006 06:00 - 13:00 7.00 RURD_ STIM CMPSTM Continue to heat 6% KCL in frac tanks. Finished well test equipment RU. Finished RU of CTU equipment and pressure test same to 4500 psig. Freeze protect same. 13:00 - 15:00 2.00 PERF CSG_ CMPSTM RU Expro firing lines to wellhead excape line terminations. Pressure test same to 10000 psig. Open up green line and pressure same to 4300 psig and fire module guns. Had good indication of guns firing. RD expro. 15:00 - 18:00 3.00 RURD_ STIM CMPSTM Finish frac truck and line RU. Verify ftac truck start up. Finish RU MOC flowback iron and pressure tested same to 4500 psig. Freeze protect same. Secure location and SDFN. 2/3/2006 06:00 - 08:30 2.50 RURD_ STIM CMPSTM Arrive location. Start up frac trucks /equipment and warm up same. RU Printed: 11/15/2006 1:49:13 PM • ~ Marathon Oil Company Page 2 of 9 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code .Code Phase Descrip#iort of Operations 2/3/2006 06:00 - 08:30 2.50 RURD_ STIM CMPSTM expro onto red firing line for module 2 perforating. 08:30 - 09:00 0.50 SAFETY MTG_ CMPSTM Hold PJSM. Discuss high pressure frac operations, line testing, frac tracing, well testing, perforating services. Discuss slips trips and falls. discuss production alarms. 09:00 - 11:45 2.75 PUMP_ FRAC CMPSTM Prime frac truck pumps and all chemical add pumps. Pressure test frac lines to 10500 psig. Good test. Pressure test well testers flowback lines to 4500 psig. Good test. Gell up fluids in blender and verify lightning fluid integrity. Troubleshoot enzyme chemical pump and LSA chemical delivery hose. Open up well. SITP = +/- 140 psig equating to an estimated BHP of 2215 psig or .477 psi/ft. Start pumping with max surface pressure = 5800 psig. Shut down due to chemical delivery problem. Estimated FG. _ .99 psi/ft based upon pressure falloff. Troubleshoot Floback 30 chemical delivery hose. (total load = 28 bbls) 11:45 - 12:20 0.58 PUMP_ FRAC CMPSTM Frac mod 1 perfs at 7950-7960' w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 5100 psi. Ramp 2.0 - 8.0 ppa. Place 33,232 Ibs prop (87.5 % 20/40 Ottawa & 12.5% 12/20 Flex Sand) per design. Tot Load = 251 bbl. Tagged w/ ProTechnics CFT 2500 chemical tracer, EPT 1000 field tracer, and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 279 bbls) (Strap all chem tanks afterjob) 12:20 - 12:45 0.42 PUMP_ FRAC CMPSTM Perforate Module 2 at 7800 - 7810' with 3750 psig on red line. frac mod 2 perfs w/ BJ Lightning_V_1800 wtr based system at 15 BPM at max TP = 3526 psi. Ramp 2.0 - 8.0 ppa. Place 27038 Ibs prop (87.5 °fo 20140 Ottawa & 12.5°!° 12/20 Flex Sand) per design. Tot Load = 211 bbl. Tagged w/ ProTechnics CFT 2400 chemical tracer and Sc-46 and Ir-192 RA markers in pad and slurry volumes, respectively. (cumm. load = 490 bbls) (Strap all chem tanks afterjob) 12:45 - 14:00 1.25 RURD_ STIM CMPSTM Hold RD and cleanup safety meeting. RD frac lines, sand kings, pumps, and blender 14:00 - 15:30 1.50 RURD_ COIL CMPSTM RU CTU. Stab injector head. Pressure test to 4500 psig. Good test. Displace coil with 6% KCL 15:30 - 17:00 1.50 RUNPUL COIL CMPSTM RIH with coil tubing pumpingn fluid at minimum rate to 7500' CTM. take test pulls on way in and at 7500' CTM. Increase fouid rate to 1.75 bpm and RIH. 17:00 - 17:45 0.75 RUNPUL COIL CMPSTM RIH and tag module 2 flapper at 7810' CTM. Set down 4000 Ibs without breaking. PU coil tubing to 7790' CTM. RIH to 7850' CTM without tagging flapper. PU to 7790' CTM and shut down pumps. RlH to 7850' without tagging flapper. PU again to 7790' CTM and RIH to 7850 without tagging flapper. 17:45 -18:00 0.25 RUNPUL COIL CMPSTM Start pumping fluid at 1.25 bpm and Nitrogen at 500 scfm. RIH to PBTD of 8072' CTM 18:00 - 19:00 1.00 JET_ N2_ CMPSTM Jet well in with nitrogen from below perforations at 8070' CTM. Well unloading broken frac fluid. WHP up to 400 psig. 19:00 - 19:45 0.75 JET_ - N2 CMPSTM POOH to above perforations at 7750' CTM. Shutdown nitrogen and monitor well. Well loading up with WHP decreasing towards 0 psig. 19:45 - 23:45 4.00 JET_ N2_ CMPSTM Start jetting nwith nitrogen again at 500 scfm and RIH to 8000' CTM. Work CT up and down through perfs but mainly below perfs jetting with 500 scfm. WHP fairly consistant between 280-340 psig. Fluid rate consistant at +/- 1000 bpd. No signs of well strengthening and no detectable signs of gas to surface. 23:45 - 03:30 3.75 JET_ N2_ CMPSTM Increase nitrogen to 750 scfm and work CT from 8000' to 7750'. WHP = 320 - 370 psig and fluid rate +/- 750 bpd. 03:30 - 04:30 1.00 RUNPUL COIL CMPSTM POOH with CT to get crews some rest and monitor well. Printed: 11/15/2006 1:49:13 PM • • Marathon Oil Company 'Page 3 of 9 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From.- To Hours Code Cod Phase Description of Operations 2/3/2006 04:30 - 06:00 1.50 RURD_ COIL CMPSTM Attempt to take well through tree Howling. Same frozen. Thaw out flowline wing valve and SSV. WHP = 30 psig with indications of gas out the top of gas buster with small amounts of fluid. WHP increased to 55 psig and a little stronger fluid flow. 2/4/2006 06:00 - 07:30 1.50 RURD_ COIL CMPSTM Thawed out tree flowline and valves and rerouted well stream through same. Isolated CT and RD Injector head. Secure CT equipmjent and send crews home fo nest. 07:30 - 19:00 11.50 FLOW_ TEST CMPSTM Monitor well for production. At 0600 hrs well venting small amount of gas and flowing water at 342 bpd with FTP = 130 psig. Throughout most of the day well flowed an average of 353 bpd with an average FTP = 85 psig. Still just venting small amount of gas. At 1600 hours well started to die and by 1900 hours FTP = 10 - 35 psig with water at 85 bpd. 19:00 - 22:00 3.00 RURD_ COIL CMPSTM CTU crew arrived location. Held PJSM. RU injector head and pressure tested body to 4500 psig. Started cooling down nitrogen unit. 22:00 - 00:00 2.00 RUNPUL COIL CMPSTM RIH slowly while handling line freezing problems in flowback iron. Started jetting with nitrogen at 1000 scfm to load coil and then slowed to 500 scfm. RIH to below perfis and tag PBTD at 8085' CTM. 00:00 - 06:00 6.00 JET_ N2_ CMPSTM Continue jelling with 500 scfm. Pump presssure just a little more than half of previous jetting operations pump pressure at same nitrogen rate indicating very little water in wellbore. Water rate started at 256 bpd with initial slug coming to surface but gradually decreased. As of 0600 hrs Nitorgen = 500 scfm WHP = 96 psig, 43 bwpd, BHP = 671 psig, CL = 8000 ppm, Trace of formation fines no frac solids, Cumm Water = 617 bbls or 126% of total frac load of 490 bbls. 2/5/2006 06:00 - 09:30 3.50 JET_ N2! CMPSTM Continue to jet with 500 scfm nitrogen. Well unloading 43 bwpd WHP = 125 psig Chlorides at 6000 ppm 09:30 - 10:30 1.00 RUNPUL COIL CMPSTM Shut down nitrogen and POOH with CT. Cum fluid recovery = 629.5 bbls or 128% of total frac load of 490 bbls. 10:30 -13:30 3.00 RURD_ COIL CMPSTM Switch well over to testers through tree flowline. Had problems with lines freezing up. Had to thaw out lines. RD injector head, flowcross, and stinger frac head. and install tree cap. Install spidr gauge on treecap for SITP recording. Data trap set up on green control line for BHP monitoring 13:30 - 06:00 16.50 TEST_ PBU_ CMPSTM Shut in well for pressure build up. Initial pressures SITP = 45 psig SIBHP = 351 psig. As of 0600 hrs 2/5/06 SITP = 1475 psig and SIBHP = 1673 psig. 2(612006 06:00 - 06:00 24.00 TEST_ PBU_ CMPFLW Monitor shut if pressures. As of 0600 hours SITP = 1520 psig and SIBHP = 1689 psig. 2/7/2006 06:00 - 06:00 24.00 TEST_ PBU_ CMPFLW Monitor shut if pressures. As of 0430 hours SITP = 1520 psig and SIBHP = 1695 psig. Purged BHP line at 0430. As of 0500 BHP line at 2214 and falling. 2710/2006 06:00 - 08:00 2.00 SERVIC EQIP CMPFLW PWS personnel on location to fire up well test unit and ensure equipment working properly. SITP was 1520 psig and BHP (control line) was 2227 psig at 0800 hrs today. Change of scope to evaluate modules 1 and 2 frac heights and to reperforate same. 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, Expro, Welltec, and PWS personnel. Discussed hazards associated with weather, eline tractor, weft pressure, and machinery. 08:30 - 10:00 1.50 RURD_ ELEG CMPFLW MIRU Expro wireline with Welltech eline tractor to run swedge and static real-time P-T survey. MU flow tee to top of swab. MU lubricator. MU 2.50" OD fluted swedge, spang jars, oil jars, CCL, roller bogie, tractor, and roller bogie. Surface tested tractor OK. Took lubricator to wellhead. Printed: 11/15/2006 1:49:13 PM • • Marathon. Oil Company Page 4 of s .Operations Summary Report ' Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code ..Code Phase Description of Operations' 2!10/2006 08:30 -10:00 1.50 RURD_ ELEC CMPFLW Pressure tested lubricator with WHP. 10:00 - 11:00 1.00 RUNPUL ELEC CMPFLW RIH with tools to 1240' KB and would not fall further. Tried to power up tractor slowly but would not pull. Signal reaching tractor but would not power up wheels. POOH to check tractor and tools. 11:00 -13:30 2.50 REPAIR EOIP CMPFLW Diagnosed shorting problem to pin in the seal sub in the bottom roller bogie. Removed roller bogie and tractor working well on surface. Tractor test on surface was successful. 13:30 - 14:30 1.00 RUNPUL ELEC CMPFLW RIH with tools on wireline to 1355' KB. Made several unsuccessful attempts to get tractor working. POOH with tools. Tractor tests good on surface. 14:30 - 15:30 1.00 RUNPUL ELEC CMPFLW RIH with tools on wireline to 1386' KB. Made several unsuccessful attempts to get tractor working. PUH 300' and tried to function tractor again without success. POOH with tools. Tractor tests good on surface. 15:30 - 17:30 2.00 RUNPUL ELEC CMPFLW Retied rope socket and checked seal sub. Changed out tractor. Surface tested new tractor-OK. 17:30 - 20:00 2.50 RUNPUL ELEC CMPFLW RIH with tools on wireline to 1360' KB. Tractor began working. Tractor tools in hole to 4700' KB. Deactivated tractor and continued RIH with swedge. Tagged up high at 7505' and worked down to 7513' in 20 minutes. 20:00 - 21:00 1.00 RUNPUL ELEC CMPFLW POOH with wireline tools and tractor. 21:00 - 22:30 1.50 RURD_ ELEC CMPFLW LD lubricator and tools. Secure well. Plan to remove the bottom roller bogie (2.70" OD) and rerun the 2.50" fluted swedge via tractor tomorrow AM. 2/11/2006 08:00 - 08:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, Expro, Welltec, and PWS personnel. Discussed hazards associated with weather, eline tractor, well pressure, and machinery. SITP was 1520 psig and BHP (control line) was 2224 psig at 0800 hrs today. 08:30 - 09:15 0.75 RURD_ ELEC CMPFLW MU 2.50" OD fluted swedge, spang jars, oil jars, CCL, roller bogie, and tractor. Surface tested tractor OK. 09:15 - 10:00 0.75 RURD ELEC CMPFLW Troubleshot Expro grease pounder. Pressure tested lubricator with WHP. 10:00 - 13:15 3.25 RUNPUL ELEC CMPFLW RIH with tools on wireline and set down at 1350' KB. Activated tractor and tractored tools in hole to 4700' KB. Deactivated tractor and continued RIH with swedge. Tagged up high at 7513' (between Modules #2 and #3) and worked for 10 minutes with no progress downward. Logged up to 6100' tying into the CBL to verify set down depth. 13:15 - 14:30 1.25 RUNPUL ELEC CMPFLW Swapped 2.50" swedge for 1.90" OD swedge and 2.25" OD centralizer. Began RIH while waiting on orders. Elected to discontinue running tool string. POOH with tools. NOTE: After running in the well with the tractor both today and yesterday, noticed that each run added fine (about the width of a dime) scribe marks circumferencially in various spots over the length of the tractor. The scribe marks are somewhat equally spaced over 1-1 /2" length. They appear to have been made while the tool was turning but not moving up or down. No marks were made on the tractor during the runs yesterday while attempting to get the tractor started at 1350' KB. Took a photo of the marks. 14:30 - 15:30 1.00 RURD_ ELEC CMPFLW RDMO Welltec tractor and Expro wireline equipment. Will evaluate point-forward plans with consideration of utilizing coil tubing next. Completed work permit and left location. 6/6/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, and ASRC crane, roustabout, and vac truck personnel. Discussed hazards and operational plan. Printed: 11/1512006 1:49:13 PM • • Mara#hon 0if Company- Page S oft ..Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date .From - To Hours Code .Code Phase Description of Operations 6/6/2006 07:30 - 11:00 3.50 RURD_ COIL CMPFLW Weaver Bros delivered 4 pallets of sack KCL (from MI) and BJ CoilTech hoses and choke manifold to location. Spotted and began rigging up BJ CoilTech coifed tubing unit and pump equipment. Two ASRC vac trucks on location at 7 am loaded with fresh water from KGF. Vac trucks mixed 6% KCL and placed in supply tank. ASRC roving roustabouts on location at 8 am to lay and burm liner under fluid supply and flowback tanks and to RU MOC chicksan. Rain-for-Rent delivered 500 bbl supply tank and United Rental delivered manlift at 9 am. R&K delivered MOC gas buster from SD Pad. Stabbed coil tubing into injector head. 11:00 - 13:00 2.00 RURD_ COIL CMPFLW Opened well and noted 1600 psig SICP. Tree valves not holding pressure completely. Called out Vetco to inspect and grease valves. Managed to get top master to hold while waiting on Vetco. Bled off pressure and removed tree cap. MU crossover flange connection to top of swab. Flange up BJ CoilTech flow cross and BOP to crossover flange. Vetco greased and functioned all tree valves. Rain-for-Rent delivered open top flowback tank. Set MOC gas buster on flowback tank and chained down. ASRC roustabouts began making up MOC chicksan to gas buster and BJ flow cross. 13:00 - 14:00 1.00 RURD COIL CMPFLW Spotted BJ choke manifold with ASRC crane. Vac trucks still mixing KCL and loading supply tank. PU injector head and MU to CT BOP's. Make final pump line tie-in to flow cross and coil tubing reel. Made final chicksan tie-in from BJ flow cross to choke manifold and gas buster. 14:00 - 15:00 1.00 TEST_ BOPE CMPFLW Pressure tested pump lines to choke manifold to 200/6500 psig with 6% KCL water. Pressure tested BJ CT BOP rams to 200/4500 psig with 6°I° KCL water. 15:00 - 16:00 1.00 RURD_ COIL CMPFLW LD injector head and installed night capon CT BOP. SWIFN. Vac trucks finished mixing KCL water and loading supply tank. Roustys finished berming liner around tanks. 6R/2006 07:00 - 07:30 0.50 SAFETY MTG CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 - 09:30 2.00 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. MIRU BJ nitrogen unit. PU injector head. MU 1.75" straight bar, double flapper check valve, and Tornado Tool to crossover on CT dimple-on connector. MU 2.62" OD flapper breaking nozzle to Tornado Tool. Took injector head to well. Shell tested CT BOP to 2500 psig with 6% KCL water. Opened well noting 1575 psig SICP. 09:30 - 11:00 1.50 JET_ N2_ CMPFLW RIH at 85 fpm jetting nitrogen at minimum rate of 450 scfm. Fluid to surface when coil tubing was at 2500'. Continued RIH jetting with nitrogen at 450 scfm until tagged solid twice at 6705' CT KB. Obtained sample of return fluid which appears to be fine grey Beluga formation fines with a small amount of FlexSand. PUH and prepared to pump commingled 6% KCL water and nitrogen. 11:00 - 13:30 2.50 JET_ WTR_ CMPFLW RIH at 85 fpm pumping N2 at 400 scfm and KCL water at 1.0 BPM. Spent about one hour circulating on top of bridge at 6708' KB with 2-4K negative slackoff weight. Broke through bridge and continued RIH at 20-25 fpm pumping N2 and KCL water. Tagged and quickly worked through 7807' CT KB (Module #2 flapper is at 7819' KB). PBTD at 8073' CT KB (tagged PBTD at 8085' KB during CT frac cleanout). 13:30 - 15:30 2.00 JET_ WTR CMPFLW Dropped and pumped ball down CT to shift Tornado Tool port direction to point up the wellbore. POOH at 30 fpm to 7700' pumping KCL water at 1 BPM and N2 at 450 scfm. Obtained a considerable amount of formation fines (fine sand and coal) to surface after circulating and pulling off bottom. Printed: 11/15/2006 1:49:13 PM • • Marathon Oil Company Page 6 of 9 ` Operations Summary :Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code ...Phase Description of Operations 6/7/2006 13:30 - 15:30 2.00 JETV WTR_ CMPFLW Fines dropped off after POOH about 1500'. Continued jetting out of hole at 90 fpm to 500' KB. Returns are clean. 15:30 - 18:30 3.00 JET_ N2_ CMPFLW RIH jetting only N2 at 450 scfm. Tagged up at 8023' CTM which was 50' higher than depth during today's cleanout run with fluid. Attempted to RIH cleaning out with nitrogen without success. Since Tornado Tool is positioned to jet upwards and no further penetration could be achieved, decided to POOH jetting only nitrogen and trapping 1600 psig surface nitrogen pressure to attempt to hold back fluid entry into the wellbore. Recovered a total of 44 bbls of fluid today. 18:30 - 20:30 2.00 RURD_ COIL CMPFLW SIWFN. Bled off nitrogen pressure from coil tubing. Transferred fluid from flowback tank to supply tank through BJ filter pod. LD injector head and installed night cap on CT BOP's. Cut off coil tubing connector after breaking out wash nozzle assembly. Installed new dimple-on CT connector and pull tested same. 6/8/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 - 09:00 1.50 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. PU injector head. Pull tested dimple-on CT connector to 20K lbs. MU 2-118" OD double flapper check valve and hydraulic disconnect assembly to connector and pull tested to 10K. MU 20' of CT lubricator to injector head. 09:00 - 10:30 1.50 WAITON EQIP CMPFLW Wait on Expro to drive to Nikiski to retrieve 12V adaptor for P-T tool. MU Expro memory Pressure/Temp/GR/CCL tool string with 2-1/8" scalloped gun carrier shroud (with single ported bullplug on leading end) to double flapper check assembly on coil tubing. 10:30 - 11:00 0.50 RURD_ COIL CMPFLW Took lubricator and injector head to well. Shell tested BOP and lubricator connections to 1500 psig with 6% KCL water. Opened well noting 1578 psig SICP. 11:00 - 13:30 2.50 RUNPUL COIL CMPFLW RIH with memory P-T tool on coiled tubing to 485' KB. Pumped one bbl over 27 bbls CT capacity to place KCL water at tool. Connected Expro depth encoder to BJ depth counter. Continued RIH with P-T tool. Had to stop repeatedly to adjust, reposition, and reset the Expro depth encoder. Corrected problem and continued into the wellbore. Tagged PBTD at 8066' CT KB (corresponds with paint mark from previous days tag). Pumped 1 bbl of KCL water through CT to clear any obstruction in bottom of P-T tool shroud. 13:30 - 16:30 3.00 LOG_ CSG_ CMPFLW PUH logging at 30 fpm to 7500'. Wait for 5 minutes and then RIH at 80 fpm logging. Tagged at same depth of 8066' CTM. Wait 5 min and PUH logging at 30 fpm to 7500'. Stopped and marked pipe at 7500.1' with blue paint. POOH logging at 100 fpm taking static benches at 7166' RKB, 5940' RKB, 4560' RKB, 1119' RKB, (4000', 3000', 2000', 1000' ND, respectively) and at surface. 16:30 - 18:00 1.50 RURD_ COIL CMPFLW SWIFN. Break out P-T tools and downloaded data-Data is good. LD lubricator and injector head. From GR log, frac height for Module #1 appears to be from 7926-7996' KB (70' overall) across Module #1and 7790-7826' KB (36' overall) across Module #2. 6!9!2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 - 09:00 1.50 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. PU injector head. MU 2-1/8" OD double flapper check valve and hydraulic disconnect assembly to connector. MU 20' of CT lubricator to injector head. MU 15' of 2-1/8" TCP guns loaded with BH charges at 6 SPF, 60 deg phasing, Printed: 11/15/2006 1:49:13 PM ~~ • Marathon Oil Company Page ~ of 9 Qperatiolns Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name; GRASSIM OSKOLKOFF 4 Spud Date: 12/10/2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From -To Hours Code Code Phase Description of Operations ~ 6/9/2006 07:30 - 09:00 1.50 RURD_ COIL CMPFLW and hydraulic TCP firing head. Took lubricator and injector to well. Shell tested BOP and lubricator to 1500 psig. Opened well noting 1530 psig SICP. 09:00 - 12:30 3.50 RUNPUL COIL CMPFLW RIH with TCP perforating assembly on coiled tubing to find blue paint mark at 7505.2' CT KB. Adjusted digital CT measurement back to 7500.1' to reflect depth recorded during yesterday's P-T log run. Blew down well i pressure from 1530 to 910 psig. Target 50% underbalance at perforating i depth is 943 psig surface nitrogen pressure to achieve 1107 psig (50% of 2214 psig reservoir pressure estimate) at depth. j 12:30 - 13:30 1.00 PERF CSG_ CMPFLW RIH to 7971.7 CTM to place perforating gun at 7947.5-7962.5' KB. Blew down WHP from 910 to 80 psig while pumping 1/2" ball through coil tubing I 1o fire perforating guns. Total 6% KCL water pumped into the well while I displacing the ball was 38 bbls. Pump pressure climbed to 4900 psig to I shear and release mechanical firing head. 13:30 - 14:30 1.00 RUNPUL COIL CMPFLW POOH with perforating assembly. SIWHP increased from 80 to 215 psig ~ in 40 min. Discussed options with Houston Engineering. Decided to try to flow well through gas buster this evening. Depending on overnight flow ~ ~ results, will be ready to jet the well in with a slick assembly and nitrogen or make another reperforating TCP run on CT. SIWHP at 150 psig when coil ~ tubing at surface. ~ 14:30 - 15:30 1.00 RURD_ COIL CMPFLW SWI. Took lubricator from wellhead. LD spent perforating gun. All shots ~ fired and round. LD double flapper and disconnect. LD lubricator and ~ injector head. Closed CT BOP blind/shear rams and manually locked ~ them closed. Installed night cap on top of GT BOP. ~ 6/10/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ ~ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. i 07:30 - 09:30 2.00 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. Opened well noting i 440 psig SITP. Blew down well to gas buster in 1 minute. Decided to i proceed with nitrogen jetting on coil tubing. PU injector head. MU 2-1/8" ~ OD double flapper check valve and hydraulic disconnect assembly to connector. MU XO, 1-3/4" OD x 3' straight bar, and 2.62" OD flapper breaking nozzle. MU 8' of CT lubricator to injector head. Took lubricator i and injector to well. Shell tested BOP and lubricator to 1500 psig. Cooled down N2 pump and purged KCL water from CT to flowback tank. Opened well with 0 psig. 09:30 -11:30 2.00 JET_ N2_ CMPFLW RIH at 100 fpm jetting nitrogen at 500 scfm. Began getting fluid to surface when CT at 2500' KB. Continued RIH jetting nitrogen and tagged PBTD at 8083' CT KB. Jetted nitrogen at 500 scfm at PBTD for 20 minutes. Recovered 91 bbls of relatively clean fluid to surface with just a trace of solids in the fluid. 11:30 - 12:30 1.00 JET, N2_ CMPFLW POOH jetting nitrogen to 7070 'and then shut down nitrogen pumps -well appears to be flowing on its own and making about 0.75 BPM of produced fluid. Continued POOH with coiled tubing. When CT at surface, well still producing on its own at 160 psig FTP and unloading produced water to the gas buster. 12:30 - 17:00 4.50 RURD_ COIL CMPFLW Blew down nitrogen from coil tubing. Closed and manually locked CT blind/shear rams. Installed night cap on top of CT BOP. LD jetting assembly, lubricator, and injector head. Left well flowing to gas buster. Total fluid recovered today at 16:30 hrs was 283 bbls. Well is flowing about 10 bbls of fluid each 1/2 hour. Unloading calculations for an 80 deg tangent angle in 3-1/2" tubing is around 1.7 MMscfd at 150 psig. ASRC roustabouts on location to RU chicksan from the flowline to the sand buster Printed: 11/15/2006 1:49:13 PM • Marathon Oil Company Page 8 of 9 Operations .Summary Report ' Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Spud Date: 12/10/2005 Start: 12/19/2005 End: Rig Release: Group: Rig Number: 1 I Date From - To Hours .Code. Code Phase Description. of Operations 16/10/2006 12:30 - 17:00 4.50 RURD_ COIL CMPFLW and gas buster. Plan to have MOG personnel monitor flow over the weekend. Called out two ASRC vac trucks to begin hauling off produced water to injection site. 6/13/2006 07:00 - 07:45 0.75 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. i 07:45 - 09:50 2.08 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. Rerigged choke i manifold and rigged gas buster. I 09:50 - 10:55 1.08 TEST_ BOPE CMPFLW Fill CT and perform full BOP test 250 14500 psi. Good test on stripper, pipes, blinds, and lines. 10:55 - 12:20 1.42 FLOW_ TEST CMPFLW Observe well. Flowing at 100 psi and 12 BBIs per hour water. i 12:30 - 13:30 1.00 PUMP_ N2_ CMPFLW Coll down N2 and purge CT to gas buster with well flowing. Continuous gas to gas buster. 13:30 - 15:10 1.67 RUNPUL COIL CMPFLW RIH CT and tag TD at 7969' RKB. 15:10 - 16:20 1.17 RUNPUL COIL CMPFLW POH CT. 16:20 - 17:30 1.17 RURD_ COIL CMPFLW Rig back CT for night. Close blinds, cap BOP, and leave location 6/14/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 - 07:45 0.25 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. 1 07:45 - 09:05 1.33 RURD_ OTHR CMPFLW Rig up and pick up hydraulic firing head and 15' pert gun with deep penetrating charges. 09:05 - 09:15 0.17 TEST_ BOPE CMPFLW Perform shell test to 1500 psi. Good test. ~ 09:15 - 10:45 1.50 RUNPUL COIL CMPFLW RIH CT and tag TD at 7959' RKB. ~ 10:45 - 14:20 3.58 RUNPUL COIL CMPFLW POH to flag depth. Tie in to CBL and adjust counter. 14:20 - 16:10 1.83 CMPFLW RIH and position gun to shoot 7948' - 7962'. 16:10 - 16:35 0.42 PERF_ CSG_ CMPFLW Perforate 7948' - 7962' CBL depth. ~ 16:35 - 17:40 1.08 RUNPUL COIL CMPFLW POH CT. 17:40 - 18:30 0.83 RURD_ COIL CMPFLW Rig back CT for night. Close blinds, cap BOP, and leave location 6/15/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 -11:30 4.00 WAITON ORDR CMPFLW Stand by and evaluate well. Well flowing at 80 psi and 9 Bbls/hour water. 11:30 -12:00 0.50 RURD_ COIL CMPFLW Warmed up BJ CoilTech coiled tubing unit and pump. 12:00 -12:30 0.50 RURD_ OTHR CMPFLW Rig up and pick up hydraulic firing head and 10' pert gun with deep penetrating charges. 12:30 - 12:40 0.17 TEST_ BOPE CMPFLW Perform shell test to 1500 psi. Good test. 12:40 - 14:20 1.67 RUNPUL COIL CMPFLW RIH CT and tie into flag at 7500'. 14:20 - 14:30 0.17 RUNPUL COIL CMPFLW Tie in to CBL and adjust counter to top shot on pert gun at flag.. 14:30 - 14:45 0.25 RUNPUL COIL CMPFLW RIH and position gun to shoot 7910' - 7920'. 14:45 - 15:05 0.33 PERF_ CSG_ CMPFLW Perforate 7910' - 7962.5' CBL depth. 15:05 - 16:10 1.08 RUNPUL COIL CMPFLW POH CT. Well died. 16:10 - 17:15 1.08 RURD_ COIL CMPFLW Rig back CT for night. Close blinds, cap BOP, and leave location. Well starting to unload water. Observe well for night. 17:15 - 22:10 4.92 CMPFLW Flow well. made 116 bbls and gas buster washed out. Shut in well and flag leak. 6/16/2006 07:00 - 07:30 0.50 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 07:30 - 08:00 0.50 RURD_ OTHR CMPFLW Well has been shut in since 10 PM. Lay down damage gas buster and release BJ crew. 08:00 - 09:30 1.50 WAITON EOIP CMPFLW Wait on replagas buster and crew. 09:30 - 10:30 1.00 RURD_ OTHR CMPFLW Rig up gas buster. Printetl: 11/15/LOU(i 1:4y:13 PM ~ • Marathon Oil Company Page 9 of 9 Operator>rs Summary Report Legal Well Name: GRASSIM OSKOLKOFF 4 Common Well Name: GRASSIM OSKOLKOFF 4 Spud Date: 12/10!2005 Event Name: ORIGINAL COMPLETION Start: 12/19/2005 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 .Date From - To Hours Code Coati Phase Description of Operations . 6/16/2006 10:30 - 10:50 0.33 FLOW_ BACK CMPFLW Open well to gas buster. 10:50 - 18:00 7.17 FLOW_ BACK CMPFLW Water to surface. Flowing about 20 Bbls/hour at 100 psi. 18:00 - 06:00 12.00 CMPFLW Flowing about 2 Bbls/hour at 50 psi, Observe well for night 6120!2006 10:15 - 10:50 0.58 SAFETY MTG_ CMPFLW Held PJSM to review conditions of Safe Work Permit with MOC, BJ CoilTech, Expro, and ASRC crane personnel. Discussed hazards and operational plan. 10:50 - 12:30 1.67 RURD_ COIL CMPFLW RU CTU. THP = 980 psi. Open well to gas buster. 12:30 -13:20 0.83 TEST_ BOPE CMPFLW THP = 40 psi. Close well. Test CT ande purge to tank 13:20 - 13:40 0.33 RUNPUL COIL CMPFLW RIH CT to 2000' and start N2 at 500 scf/min. 13:40 - 14:30 0.83 RUNPUL COIL CMPFLW RIH to 7100'. Found fluid around 6000'. Start KCI at 0.75 PM, comingling with N2. 14:30 - 14:40 0.17 RUNPUL COIL CMPFLW Tag hard at 7201'. 14:40 -15:25 0.75 JET_ N2_ CMPFLW Allow water to reach nozzle. 15:25 - 17:45 2.33 JET_ N2_ CMPFLW Attempt to jet down. Unable to jet. Attempt to break flapper??. Tagged very hard 11 times from 40 to 70 fpm. Set 6 - 12 ksi on flapper. Final tag at 7201'. SD N2 and observe well. CT pressure bled to 400 psi (approximate BHP at 7200'. 17:45 - 18:45 1.00 RUNPUL COIL CMPFLW POH CT. Well flowing at 50 psi with very little water. 18:45 - 19:30 0.75 RURD COIL CMPFLW Rig back CT for night. Will rig off well during day tomorrow. Printed: 11/15/2006 1;49:13 PM r M Ma/r~a~t~hon MARATHON OII VVf1 I Rpany January 26, 2006 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 W. 7`t' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Grassim Oskolkoff #4 CONFIDENTIAL Dear Mr. Oakland: Alaska Asset Team Northern Business Unit ~ ~a~ ~~ The following confidential well data is enclosed for the above referenced well. GO #4 P.O. Box 3128 Houston, TX 77253 Telephone 713-296-2384 Fax 713-499-8504 FEDERAL EXPRESS AOGCC Approved Drilling Permit ............................................................................... digital AOGCC Spacing Exception Approval .......................................................................... digital As-Built Plat .................................................................................................................. digital Daily Drilling Report Summary ..................................................................................... digital Wellbore Diagram .......................................................................................................... digital Directional Survey ......................................................................................................... digital Epoch Mud Log Data ..................................................................................................... digital Precision Well Data MD-Compensated Sonic-FINAL ................................................................................. digital MD-Photo Density-Dual spaced Neutron-FINAL ....................................................... digital MD-Array Induction-Vectar Processed-FINAL ........................................................... digital TVD-Array Induction-Focused Electric-FINAL .......................................................... digital MD-Array Induction-Focused Electric-FINAL ............................................................ digital Please indicate your receipt of this data by signing below and returning one copy to me at the letterhead address or fax to 713-499-8504. Thank you, ~~~ Kaynell Zeman r~~~~_ Geological Technician Received b Date: Enclosures a ` ~ ALASSA OIL A1QD GAS COI~TSERQATI011T CODII~IISSIOI~T January 12, 2006 P.K. Berga Drilling Superintendent Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 ~`f i'+ FRANK H. MURKOWSKI, GOVERNOR J~ r'V ~~ 333 W. 7T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 ~~ PHONE (907) 279-1433 FAX (907) 276-7542 Re: Application for Permit to Drill Well Ninilchik Unit Grassim Oskolkoff #4 Permit No. 205-190 Dear Mr. Berga: The attached Permit to Drill reflects changes to the originally permitted bottom hole loca- tion of your Ninilchik Unit Grassim Oskolkoff #4 well (PTD 205-190). Winton Aubert of the Alaska Oil and Gas Conservation Commission verbally approved the changes on December 23, 2005. Please update your records accordingly. ~o Orman Chairman Jan-11-O6 02:26pm From-MARATHON -~ - -,, -#--W..---~ „ - - ~. +9155646469 ~ T-356 P.02/02 F-896 ~Au~'~Dra G~~~ LLB www.aurorapower. tom ]s~nu~try I !, 2ROti M~~za.l'liG=i C)il t~ompany J. (;rc,ck ,R.iddle, Latld Maclt~gur P.fl_ Box 1461 fib A~~chni•F1gC, ~„~, ~?~S'i9-61ti8 KC: M,U(:'s Cifatisim t~SlsQlkt~ff#~ ~~•assi.m UskolkaffPA Ninilchik Unit Kcr~ai lianiust~la 8urotjgh, Rlaska lae;:lr E3rnck: Aurora is it1 rccci~t ~ f ll~~ clala provitictl by Marathon rcgarciing the Captioned well anti the additional foatttgc +lrillcci suh~tsyuen~ tea tl~e issu~lilCC ~l.•~~caitscrvatiun C)rtlGr Nu_ StiO (Sp~lcirig ~F.xcel~t,iaa~). After reviewing said data, ~lcasc he sdvi~eil thal Aurora leas no abjection to the liatlran~hole Ioet~l:inn ar drilling ofthc Urassitn Uskc~lkc~il'#4 well cr airy sul~seque~~t pruclucti~an tl7t~'Tl) fi'cnn_ 'Very 'T`ruly Yr~ti,r~, Ftattidstll n. ,Tongs, C"-PL, lvlialia~er, l.a:ail & NCoI'Jllc~i1~111s 1j~on~sCa)auraranrrwcr.cnrr~ mc~c grasc~skc~ wa.ivel- T09$9 Hichn-ron~ Avenue. $u~e 71 P • Houatoll, Tiexas 77042 • (719} 977•B7A9 » fax (779) 9771947 Ygpp West 9e,nson 91vd., Suite 4f0 * AaahPraOe~ Ale~ka 99509 • (907) 277-7QQ9 -Fax (80?)177--1006 Re: Marathon Grassim Oskolkoff #4 Location Exception Subject: Re: Mar~ithon Grassim Oskolk~ff ~4 LocationException From: Robert Crandall = hob_crandall aacin~in.state.ak.us> llate: 'ion. Off) .Ian ~OC~(~ 1(1:?7:i) -090(3 To: "13rimhcrr~, Da~~i~1" ~ -~lbrin~bca-r~~r~inrirathonoiLcom% CC: "IZidcil~, J I3roc1~' ~_jbricldle~~~marathonoiLc~~m=°. "f3er~~a_ 1'e~r" ~_~~khcr~~a~'urnarathonoiLeom>, "~[~ank, ~t~ill" <~~ jlank~~i`n~ar<~lhonoil.coill:= David; Thanks for looking at this well. basically what has happened here is the well was drilled in a way that did not conform to the description used for the spacing exception. The actual well is within 3,000' of the Aurora lease to the west while the proposed well (description used in the spacing exception) was more than 3000' from the Aurora lease. Aurora was not notified in the spacing exception application and this must be done before the well can go on regular production. The best way to do this is for Marathon to write a letter to Aurora (with a copy to us C/O me), the notification you provide Aurora must also go to all other owners and landowners in that lease. The letter should describe the chronology of the well and how Aurora became an affected party. I would also point out the well is more than 1500' from the Aurora lease. Ask Aurora to send a letter ofnon-objection to the well to me with a copy to Marathon and when we receive the letter the GO No. 4 can begin regular production. Let me know what you think. BC Brimberry, David wrote: Bob As we spoke on the phone last week, Marathon drilled the Grassim Oskolkoff #4 (G04) six hundred feet deeper than the permitted depth We received a verbal approval to extend the well's total depth; one hundred feet deeper than the AOGCC allowable five hundred foot latitude. We have since submitted an amended drilling permit for the deeper drilling. The deeper drilling also changed the relationships of the bottom hole location (BHL) to the adjacent leases (See attached file). «go4 loc postdrill loc except 010906.ppt» The BHL relationships to the section and lease lines for the plan and the final TD are: Plan BHL 7575' MD; 4350' TVD 3122' FWL & 1000' FSL Sec. 15 T1N-R13W 1 of 2 1/9/2006 2:07 PM Re: Marathon Grassim Oskolkoff #4 Location Exception Final BHL 8175' MD; 4829' TVD 2849' FWL & 1188' FSL Sec. 15 T1N-R13W A location exception was approved for the original plan location. This location exception was necessary for the plan well because the planned productive interval crossed the lease line between Sections 15 and 22 T1 N-R13W. Additionally, the proximity of the G04 well to the ', G01 well also required a location exception. The deeper drilling changes the BHL relationship to the lease west of Section 15 and also incorporates an interval that could be completed in the nearby G01 well. The lease to the west of Marathon's Section 15 lease is held by Aurora Limited (assigned by ARCO Alaska). With the deeper drilling, the 3000' notification radius now inches into the Aurora lease; however the G04 well does not encroach within the 1500' lease Alaska Statue offset requirements. The Excape completion (perforation guns run on casing) included the zone that was found in deeper drilling of GO 4 and is approximately 300' (map coordinates) away in the G01 well. This correlative zone in the G01 well is not scheduled to be completed until the future because deeper reservoirs will need to be completed and depleted before bringing this reservoir on line. I would appreciate an understanding of the documentation necessary to allow Marathon to move forward with the completion (set off perforation charges that are on the casing and fracture stimulate) of the well. We have scheduled this work on February 2, 2006. The operation requires mobilizing equipment and personnel to Alaska. From our discussion, this email should suffice to document what Marathon accomplished with the additional drilling in G04. It sounded as if a letter of non-objection could be requested from Aurora. I am unclear how this comes about; through Marathon or through the AOGCC? Your direction is greatly appreciated. Thanks David David L. Brimberry Alaska Asset Team Northern Business Unit Marathon Oil Company «David L. Brimberry (dlbrimber marathc~noil.com).vcf» 2 of 2 1/9/2006 2:07 PM Marathon MARATHON Oil Company December 29, 2005 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 u Aiask~ ~~~$r~0~~ ~' Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit - Grassim Oskolkoff #4 Redrill Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The well has been drilled and completed and this paperwork is a follow up to the verbal approval given by Winton Aubert on December 22 to drill deeper than our approved permit. The original approved permit to drill the GO #4 well(Permit number 205-190 and API number 50-133-20557) was for 7575' md/4350' tvd. Verbal permission was granted to drill to 8175' md. If you require further information, I can be reached at 907-565-3032 or by e-mail at pkberga@ marathonoil .com. Sincerely, Peter K. Berga Drilling Superintendent Enclosures t--•. STATE OF ALASKA ~'~ ~~ ~~w ~• -~ ALA OIL AND GAS CONSERVATION COI~SION ~ ~ ~ ~ ~ ;~ ,~ ~iJ~1 PERMIT TO DRILL ~~-~--fi~r(( / ~-+~i~ 20 AAC 25.005 /NJ H ~9~ ~:,_ ~~4~d~~l~~~1~ 1a. Type of Work: Drill Redrill ~ Re-entry ~ - - _ _,.._ 1 b. Current Well Class: Exploratory evelopment Oil ~ .pit Zone ~ Stratigraphic Test ~ Service ~ Development Gas ~ Single Zone 2. Operator Name: Marathon Oil Company 5. Bond: Blanket ~ Single Well Bond No. 5194234 11. Well Name and Number: Ninilchik Unit - Grassim Oskolkoff #4 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: ~ MD: 8,175 ~ TVD: 4,844 12. Field/Pool(s): Ninilchik Unit 4a. Location of Well (Governmental Section): Surface: 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. ~' 7. Property Designation: ADL 389737 /ADL 384305 Infield Wildcat (Beluga) & Tyonek Pool Top of Productive Horizon: 650' FNL, 368' FWL, Sec. 23, T1N, R13W, S.M. ~ 8. Land Use Permit: 13. Approximate Spud Date: December 22, 2005 Total Depth: 1,123' FSL, 2,365' FEL, Sec. 15, T1N, R13W, S.M. ~ 9. Acres in Property: 3,096 / 2,158 14. Distance to Nearest Property: 1,600 ft (fee-private) 4b. Location of Well (State Base Plane Coordinates): Surface: x - 229,136.00 ~ y - 2,255,130.00 ~ Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 187 feet 15. Distance to Nearest Well Within Pool: 200 ft. to GO #1 16. Deviated wells: Kickoff depth: 150 feet Maximum Hole Angle: 83 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 2,310 ~ Surface: 1,827 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 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(RKB-21') TVD(RKB-21') Structural 95' 13 3!8" Driven 116' 116' Conductor Surtace 3263' 9 5/8" 713 sacks 3284' 1470' Intermediate Production 8113' 3 1/2" 1100 sacks 8134' 4794' Liner Perforation Depth MD (ft); Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch Drilling Program ~ Time v. Depth Plot Shallow Hazard Analysis Property Plat ~ Diverter Sketch ~ Seabed Report ~ Drilling Fluid Program ~ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: ~,~~,~~,,~ ~~,; !~ Date 12/22/2005 /-~~~c3~ 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Winton Aubert Printed Name P. K. Berga Title Drilling Superintendent Signature ~~ Phone 907-565-3032 Date 12/29/2005 Commission Use Only Permit to Drill _ ~~ Number, ~l ~j ~ l /L:' API Number: _ 50- ~ <~ ~ ~~ ~ ~' C~ Permit Approval ~. Date: ~ See cover letter for other requirements. Conditions of approval Samples required s [~ No ~ Mud log required Yes [/]~ No \ Hyddrogen sulfide ea r s ~ ~ ~ No [t~ Directional survey required Yes [~ No Other: ~l~ D W A .G ~ ~2t.~/ ~ ~" S ~,p dG' I _. -f APPROVED BY Approved by: THE COMMISSION Date: ~ iD Form 10-401 Revised 06/2004 a ~ ~~ A ~ Submit in Duplicate • • / ~ MARATHON MARATHON OIL. COMPANY DRILLING PROGRAM Ninilchik Unit Grassim Oskolkoff #4 Original 12/29/05 Originator: P. K. Berga Drilling Superintendent: P.K. Berga North America Drilling Manager: 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 ..............................................................................................................................................9 Drilling Fluid Program Summary ...........................................................................................................................................10 Drilling Fluid Specifications ....................................................................................................................................................11 Solids Control Equipment ......................................................................................................................................................11 Cement Program Summary ...................................................................................................................................................12 Regulatory Waivers and Special Procedures ........................................................................................................................12 Bit Summary ..........................................................................................................................................................................12 Hydraulics Summary .............................................................................................................................................................13 Formation Integrity Test Procedure .......................................................................................................................................13 Page 2 of 13 • • General Well Data Well Name Grassim Oskolkoff #4 .Lease/License Surface Location 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. WBS Code DX.05.12585.CAP.DRL Slot/Pad Padssim Oskolkoff Field Ninilchik Unit Spud Date 12/9/05 KB Elev.. 187 County/Province Kenai Peninsula API No. 50-133-20557 Ground Level Elev. 166 State /Country Alaska Weil Class Development Perrn. Datum KB Total MD 8175' Rig Contractor Glacier Drilling Water Depth N/A Total TVD 4,828' Rig. Name #1 Water Protection Depth Comments: Geologic Pros~ram Summary Formation MD -RKB (ft) TVD -RKB (ft) Pore Pressure (psi) Pore Pressure (ppg) Lithology Possible Fiuid Content Beluga (Target) 2,573 1,357 8.5 Sandstone Gas /Water Tyonek (Target) 6,385 3,387 9.2 Sandstone Gas Comments: Surface Location Coordinates From Lease/Blodc Lines 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. Latitude 60° 09' 52.509" N Longitude 151° 29' 13.661" W UTM North (Yj 2,255,130.00' UTM East (x) 229,136.00' Tolerance Depth Horizontal Displacement (ft) MD TVD +N/_g +EI W Tolerance Directional Target (ft) (ft) Location (Y) (X) (ft) Beluga 3,306 1,500 650' FNL, 368' FWL, Sec. 23, T1N, R13W, S.M. 1,473 -2,031 Circle 250' radius TD 8,175 4,828 1,123 FSL, 2,365' FEL, Sec. 15, T1 N, R13W, S.M. ~ 3,301 -4,830 Circle 250' radius Comments: Page 3 of 13 Summary of Potential Drilling Hazards Hazard Event Discussion Coal stability in production hole section Utilize an asphanol chemical to protect coals. Use proper mud weight to stabilize coals. Torque concerns in surface and production hole sections Use good hole cleaning techniques with high pump rates. Add lubricant where necessary. 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 (BOPS or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No HZS is anticipated. Gas sands will be encountered from +/- 3,306' MD (1,500' 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 0' - 3,204' MD None None None Production 3,204' - 8,175' MD None Reeves Quad Combo. Pull GR-Neutron to surface inside casing. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). - Completion N/A GR, CCL N/A Coring Requirements: None. Comments: Page 4 of 13 • • Drilling Program Summary CONDUCTOR:' 1. Move in and rig up rotary drilling rig. Drive first joint of 13 3/8" structural casing. 2. Drill out to +/- 100' RKB. POOH. 3. PU hammer. Drive 13 3/8" conductor to depth. RD hammer. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. Nipple up 13 5/8", 5M diverter spool, 11"diverter valve, and 16" diverter line. 6. On top of the diverter, NU 13 5/8" 5M BOP's. Function test diverter and diverter valve. 7. Set wear bushing. SURFACE: 1. Drill 12 1/4" directional hole to 3,204' MD (1,480' TVD) as per directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). 2. At TD circulate hole clean. Make wiper trip. TOOH. 3. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,000 psi. 4. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 5. Back out {anding joint. ND 13 5/8" 5M diverter spool, NU 13 5/8" 5M BOP. 6. Change out 9 5/8" casing rams with variable pipe rams. Run .test plug and test rams to 250/2,000 psi. 7. Set wear bushing. Test casing to 2,000 psi. PRODUCTION: 1. PU 8 1/2" PDC bit and rotary steerable directional BHA. Drill float equipment and 20' of new formation w/ 8 1/2" bit. CBU. 2. Test shoe to leak off. Estimated EMW 17.0 ppg. 3. Drill an 8 1/2" hole to 8,175' MD (4,82$' TVD) per the directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper-trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and laydown BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Sump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Run control and electric lines out tubing head outlet. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8° 5M X 3 1/8" 5M tubing head adapter and 3 1/8" 5M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will. be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. COMPLETION: Completion will be done without a rig. Page 5 of 13 • • Casing Program MD (ft} Connection API Ratings Casing Makeup a ._ o y Size Weight O. D. Torque Hole Size m a ~ a ~ -,°-~ (in) Top Bottom (Ibs/ft} Grade Type (in} (ft-Ibs) (in) 9 5/8 Surface 3,204 40 L-80 BTC 10.625 N/A' 12 1/4 5,750 3,090 916 31/2 Surface 8,175 9.3 L-80 8rd 4.5 3,200 81/2 10,160 10,530 207 Comments: * The make up of the buttress connection will be to the proper mark. Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Frac. Form Maximum Surface. n, o Size Weight Depth When Set Grad Press Pressure ~ c (in) (Ib/ft) Grade (TVD) (Ib/gal) (Ib/gaf) (Ib/gal) (psi) 0° V ~ 9 5/8 40 L-80 1,480 9.4 19.0 9.2 1,353 3.63 4.28 3.17 31/2 9.3 L-80 4,828 9.6 17.0 9.2 1,646 1.17 11.38 1.41 Comments: Maximum Anticipated Surface Pressure Setting Depth Casing Size TVD MAWP' MASP *' Mud/Gas (in) (ft) (psi) (psi) Ratio 9 5/8 1,480 3,940 1,353 0/100 31/2 4,828 7,067 1,827 ~ 0!100 `' MAWP =Maximum allowable working pressure *" MASP =Maximum anticipated surface pressure Comments: MASP /MAWP CALCULATIONS: Surface casing: 9 5/8" (3,204' MD, 1 480' TVD) MASPfrac _ ((Fracture gradient at shoe + S.F.) x .052 x TVDshoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (19.0 ppg + 0.5 ppg) x .052 x 1,480' - (.1 psi/ft x 1,480') MASPfrac = 1,501 psi - 148 psi MASPfrac = 1,353 psi MASPbnp = BHPope~ no~eta -Hydrostatic pressure of a gas column MASPbnp = (9.2 ppg x .052 x 4,828') - (0.1 psi/ft x 4,828') MASPbnp = 2,310 psi - 483 psi MASPbnp = 1,827 psi Page 6 of 13 ~ • MASP = MASPfrac = 1,353 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x ND MAWP = (0.7 x 5,750) - (9.4 - 8.3) x .052 x 1,480' MAWP = 4,025 psi - 85 psi = 3,940 psi Production casing: 3 1/2" (8,175' MD, 4,844' TVDI MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x NDshoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (17.0 ppg + 0.5 ppg) x .052 x 4,$28' - (.1 psi/ft x 4,828') MASPf~c = 4,394 psi - 483 psi MASPfrac = 3,911 psi. MASPbhP = BHPoPer, Hole cd -Hydrostatic pressure of a gas column MASPbhP = (9.2 ppg x .052 x 4,828') - (0.1 psi/ft x 4,828') MASPbr,P = 2,310 psi - 483 psi MASPbhP = 1,827 psi MASP =MASPbhP = 1,827 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x ND MAWP = (0.7 x 10,160) - (9.6 - 9.4) x .052 x 4,828' MAWP = 7,112 psi - 50 psi = 7,062 psi Page 7 of 13 • • BOPE Program Casing Test Test Casing Test Fluid Pressure Size MAWP MASP prp,~ 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 9 5/8 3,940 1,353 2,000 9.4 (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M diverter spool with 11" 5M valve (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 31/2 7,067 1,827 2,000 9.6 (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1 /8" 5M outlets (1) 13-5/8" 5M diverter spool with 11" 5M valve Comments: Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. A diverter spool will be placed below the blowout preventer and the annular will be used with the diverter valve during surface drilling operations. After the surface hole is completed, the diverter spool will be removed and the BOP will be nippled up on the wellhead. This is due to the need to use a 13 3/8" available well head, set on the 13 3/8" conductor. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, 13 5/8" x 9 5/8" Fluted PR1 Mandrel Tubing Head 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual U,AA,PSL1,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/8" 5M W/ Seal Pocket and 3" H BPV Threads Comments: Control lines and electric cable for the EXCAPE system will be routed through the tubing head side outlet. Directional Program Summary Build Tum Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°l100') Rate (°/100') Dogleg (°/100') InGination (deg) Azimuth (deg} +N/-S (ft} +E/-W (ft} VS (ft) 1 Tie On 0 0 0 0 0 0 355.00 0 0 0 2 KOP 150.00 150.00 0 0 0 0 355.00 0 0 0 3 Build up Section 6.00 0 6.00 355.00 4 End of Build 350.00 348.54 6.00 0 6.00 12.00 355.00 20.79 -1.82 13.68 5 Build /Turn Section 6.00 -1.07 5.91 355.00 6 End of Build /Turn 1,542.61 1,155.92 6.00 -1.07 5.91 78.75 303.00 530.92 -580.34 .781.50 7 Hold Section 0 0 0 78.75 303.00 8 End of Hold 3,353.00 1,500.00 0 0 0 77.30 299.00 1,450.30 -2,089.77 2,543.17 9 Drop Section -2.00 0 2.00 303.00 10 End of Drop 5,688.00 2,794.18 -2.00 0 2.00 36.00 304.00 2,495.93 -3,647.18 4,417.80 11 TD 8,175.00 4,828.00 0 0 0 36.00 299.90 3,300.86 -4,829.97 5,847.87 Comments: Vertical section calculated from a reference azimuth of 255.91 ° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MDl Grassim Oskolkoff #1 113.74 773.70 Grassim Oskolkoff #2 136.83 701.30 Grassim Oskolkoff #3 40.89 470.68 No serious interference exists. See attached directional plan and anticoflision analysis for more details. Directional Surveyina Summary Interval - MD MWD Survey Magnetic Multishot Gyro Multishot Comments 0 - 3,204' X 3,204' - 8,175' X Comments: Page 9 of 13 • • Drilling Fluid Program Summary Interva l - TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Visc~sifier Barite Gel, Flo-Vis, Soda Ash, Caustic, Barite, Polypac 0 1,480 8.6 - 9.4 Gel / Gelex Spud Mud Supreme UL, Sodium Meta Bisulfate, D-D, Lubetex Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 1,480 .4,828 9.2 - 9.6 6% Flo-Pro w/ Safecarb F&M, Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard, Lubetex Comments: See mud prognosis for details. Sized CaCOs (SafeCarb) wilt be used to control leakoff. Page 10 of 13 • • Drilling Fluid Specifications Interval - TVD LSRV From (ft) To (ft) Density (Ib/gal) Vis (sec/gt) 1 min (Ib./100ftZ) PV (cP) YP (Ibl100 ftz) Fluid Loss (cc) pH Drill Solids (°!°} 0 1,480 8.6 - 9.4 60 - 100 N/A 25 - 35 < 10 +/- 9.5 < 5 1,480 4,828 9.2 - 9.6 ~ 30,000 8 - 12 < 7 +/- 9.5 +/- 7.5 Comments: As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3 %" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud prognosis fordetails. Solids Control Eauipment o ~ d ~ ~ ~ iu ~ ~ m ~ i~ ~ rn ~ p m ~ :? U = c c f6 ~ ~ ~ .y ~ ~ ~ C U ~+" U Y. V ^~ Interval Comments 0 - 8,175' MD X X X X Closed Loop System, Full Containment Item Equipment Specifications (quantity, design type, brand, model, flow gpacity, etc) Shaker 2 -Derrick Model 2E48-90F-3TA Desander N/A Desitter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&1 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 Program Summary De pth Gauge Top of Cement Open Casing Size (in) MD (ft) TVD (ft} Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ftg) Sluny Vol (ft3) WOC Time (ham) Hole Excess (°f°) 9 5/8 3,204 1,480 12 1/4 0 0 1,003 1,539 8 50 31/2 8,175 4,828 81/2 2,700 1,382 1,791 2,398 24 40 Mix Water Compressive Casing Size Density Qty veld Sltarry Vol TOC MD Qty WL FW Strength (~~} (in) Slurry Cement Description (Ib/gag (sx} (fts/sx) (ft3} (ft} (gallsx} Type (cc) (°f°) 8 hr 21 fir 9 5/8 Tail Type I Cement 12 613 2.51 1,539 0 11.28 Fresh 812 0 500 31/2 Tail Class"G" 12.7 1,100 2.18 2,398 2,700 9.22 Fresh 0 500 Comments: See cement prognosis for details and spacer specifications. Restulatorv Waivers and Special Procedures AOGCC Regulation 20 ACC 25.035 (c) (1) (b) Requirement for diverter diameter to be at least 16 inches or to meet or exceed hole size. Marathon is requesting a waiver from the above regulation for KBU 11-7. The surface casing for this well is 9 5/8", with a 13 3/8" conductor string. The wellhead system currently available for EXCAPE completions is 13 3/8" slip loc x 13 5/8" flanged. Our intentions are to fit the multibowl head to the 13 3/8" conductor pipe. From there a 13 5/8" 5M diverter spool would be placed on the head and our 13 5/8" 5M BOP stack would be rigged up on top of the diverter spool. The diverter spool has an 11" 5M outlet and valve configuration. The planned surface hole size is 12 1/4". To date, 3 wells have been drilled on the Grassim Oskolkoff pad. The TD of the surface hole (1,480' TVD) on this well is shallower than the 3 existing wells and no gas was detected in these wells above this TVD. No flow control issues have been seen in the surface hole of any of these wells. Once the surface casing is set and cemented, the diverter spool will be pulled and the BOP system will be nippied up on the wellhead, Bit Summary Interva l - MD Type Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours ROP (ft/hr) 0 3,204 12'/4 Christensen MXL-1 117 20 - 50 80 - 300 3,204 8,175 8 Yz Christensen HCM 605 M223 Up to 25 Motor Comments: See bit prognosis for additional information. Page 12 of 13 • Hydraulics Summary Rig mud pumps available are shown below. • Max Press @ Displacement @ Liner iD Stroke g0°~ WP 95% eff Max Rate Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) (spm/gpm) On 3 National Oil A600PT 5 8 2,597 2.04 125 ! 255 Surface Well 5 8 2,597 2.04 125 / 255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Hole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size (ft) (in) (gpm) (psi) (fpm) (Ib/gal) (32"s) Remarks 3 - 18's, 0 - 3,204 12 1/4 662 1,915 135 Actual Data from GO #3 (@ 2,508' MD) 1-16 3,204 - 8,175 8 1/2 552 2,300 322 5 - 15's Actual Data from GO #3 (@ 7,332' MD) Comments: See separate hydraulics calculations. Annular velocities in the 12'/4", and 8 %2" holes were calculated using 5" drillpipe. 5" drillpipe should be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. Formation Intes~rity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 INTEQ MARATHON Oil Com ny Location: cook Inlet, Alaska (Kenai Penninsula) SIOt: MGO#4 Field: Ninilchik Field Well: MGO#4 Installation: MGO Wellbore: MGO#4 MARATHON Scale 1 cm = 200 ft East (feet) -> -5600 -5200 -4800 -4400 -4000 -3600 -3200 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 4000 4= O -400 N U ~ _Np U ~ 400 800 1200 ~+ d w 1600 .... Z r ~ 2000 I' ~ 2400 d `> 2800 ry L I- 3200 V 3600 4000 4400 4800 5200 -400 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 6400 Scale 1 cm = 200 ft Vertical Section (feet) -> Azimuth 305.95 with reference 0.00 N, 0.00 E from MGO#4 S MARATHON Oil Company,MGO#4 M MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) • SURVEY LISTING Page 1 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ~S^ S I[;\ i ~~ Wellbore Name Created .Last Revised MGO#4 12-Dec-2005 28-Dec-2005 Well ~ Name Government ID Last Revised MGO#4 28-Jul-2005 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East MGO#4 2255129.7800 .229135:5600 ~ N60 9 52.5063 W151 29 13.6698 3180.14N 2406.14E Installation Nam Eastin Northin Coord S stem Name North Ali nment MGO 226657.8540 2252005.1620 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum True -~ i Created By 'Comments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 M MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) • SURVEY LISTING Page 2 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ~~~ NuQRA#S INTEQ Well ath Grid Re ort MD[ftJ Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de l100ft Vertical Section ft Easting Northing 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 229135.56 2255129.78 138.00 2.10 4.90 137.97 2.52N 0.22E 1.52 1.30 229135.83 2255132.29 199.00 6.90 6.00 198.76 7.28N 0.69E 7.87 3.71 229136.42 2255137.04 259.00 12.60 2.70 257.87 17.41 N 1.38E 9.54 9.10 229137.33 2255147:15 319.00 18.00 359.70 315.73 33.23N 1.64E 9.09 18.18 229137.95 2255162.96 378.00 21.30 356.00 371.28 53.04N 0.84E 5.97 30.46 229137.60 2255182.79 440.00 23.70 350.40 428.57 76.57N 2.02W 5.19 46.59 229135.26 2255206.37 500.00 25.30 345.70 483.17 100.88N 7.20W 4.20 65.06 229130.64 2255230.80 562.00 25.80 340.30 539.11 126.43N 15.02W 3.84 86.38 229123.39 2255256.51 623.00 26.50 332.50 593.88 151.OON 25.78W 5.75 109.52 229113.19 2255281.32 683.00 27.60 322.10 647.35 173.86N 40.51 W 8.08 134.87 229098.98 2255304.50 743.00 29.70 313.20 700.03 195.01N 59.89W 7.92 162.98 229080.07 2255326.09 808.00 31.50 309.00 755.98 216.73N 84.83W 4.30 195.91 229055.63 2255348.36 871.00 32.80 310.30 809.32 238.12N 110.64W 2.34 229.37 229030.31 2255370.33 934.00 35.60 309.10 861.42 260.73N 137.89W 4.57 264.70 229003.58 2255393.54 998.00 40.00 306.20 911.98 284.64N 168.96W 7.41 303.89 228973.05 2255418.15 1060.00 42.60 305.10 958.56 308.48N 202.22W 4.35 344.80 228940.34 2255442.73 1121.00 48.10 305.20 1001.41 333.45N 237.68W 9.02 388.18 228905.45 2255468.49 1183.00 54.80 303.50 1040.03 360.77N 277.71 W 11.02 436.62 228866.05 2255496.70 1245.00 60.60 303.90 1073.14 389.84N 321.29W 9.37 488.96 228823.14 2255526.74 1308.00 65.20 303.40 1101.83 420.90N 367.96W 7.34 544.98 228777.17 2255558.85 1370.00 71.70 302.00 1124.60 452.02N 416.47W 10.69 602.52 228729.38 2255591.06 1434.00 78.30 301.60 1141.15 484.58N 468.98W 10.33 664.14 228677.61 2255624.79 1498.00 80.30 299.40 1153.04 516.49N 523.16W 4.60 726.74 228624.17 2255657.91 1561.00 79.70 299.60 1163.97 547.04N 577.16W 1.00 788.39 228570.87 2255689.67 1621.00 79.50 298.70 1174.81 575.79N 628.70W 1.51 846.99 228519.99 2255719.56 1686.00 78.90 300.50 1186.99 607.32N 684.22W 2.87 910.44 228465.20 2255752.34 1748.00 79.80 303.80 1198.45 639.74N 735.79W 5.43 971.23 228414.37 2255785.91 1812.00 80.20 304.00 1209.56 674.89N 788.11 W 0.70 1034.22 228362.86 2255822.24 1876.00 79.40 303.60 1220.90 709.94N 840.45W 1.39 1097.16 228311.32 2255858.44 1939.00 79.10 303.40 1232.65 744.10N 892.06W 0.57 1159.00 228260.49 2255893.76 2004.00 81.60 301.40 1243.54 778.42N 946.16W 4.90 1222.95 228207.18 2255929.30 2128.00 82.00 301.40 1261.23 842.37N 1050.92W 0.32 1345.29 228103.89 2255995.58 2255.00 82.80 301.30 1278.02 907.86N 1158.43W 0.63 1470.77 227997.89 2256063.48 2318.00 83.00 301.50 1285.81 940.43N 1211.79W 0.45 1533.09 227945.28 2256097.24 2381.00 80.80 300.60 1294.69 972.60N 1265.22W 3.77 1595.23 227892.58 2256130.60 2444.00 80.10 301.00 1305.14 1004.41 N 1318.58W 1.28 1657.10 227839.95 2256163.61 2510.00 79.40 300.90 1316.88 1037.82N 1374.28W 1.07 1721.80 227785.02 2256198.25 2573.00 79.50 300.20 1328.42 1069.30N 1427.62W 1.10 1783.46 227732.40 2256230.93 2636.00 79.70 300.70 1339.79 1100.70N 1481.04W 0.84 1845.14 227679.71 2256263.52 2698.00 79.30 300.50 1351.09 1131.73N 1533.51 W 0.72 1905.84 227627.95 2256295.73 2761.00 78.30 300.10 1363.33 1162.91 N 1586.87W 1.71 1967.34 227575.31 2256328.10 2824.00 78.20 300.20 1376.16 1193.89N 1640.20W 0.22 2028.70 227522.68 2256360.27 2951.00 78.40 300.10 1401.91 1256.35N 1747.74W 0.18 2152.42 227416.58 2256425.14 3075.00 77.50 299.80 1427.80 1316.90N 1852:81 W 0.76 2273.03 227312.90 2256488.03 3225.00 78.40 299.30 1459.11 1389.24N 1980.42W 0.68 2418.80 227186.95 .2256563.23 3292.00 78.30 299.10 1472.64 1421.25N 2037.70W 0.33 2483.97 227130.41 2256596.52 3353.00 77.30 299.20 1485.53 1450.30N 2089.77W 1.65 2543.17 227079.01 2256626.73 3417.00 76.20 299.40 1500.20 1480.78N 2144.10W 1.75 2605.05 227025.38 2256658.43 3480.00 74.30 299.80 1516.24 1510.87N 2197.07W 3.08 2665.59 226973.10 2256689.71 3543.00 72.50 300.40 1534.24 1541.15N 2249.30W 3.00 2725.65 226921.57 2256721.15 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) • SURVEY LISTING Page 3 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 /~ S t:`TEC1 Well ath Grid Re ort MD[ft] Inc[deg} Azi[deg] TVD[ft] North[ft] East[ftj Dogleg de /100ft Vertical Section ft Easting Northing 3604 .00 70 .40 300. 00 1553 .64 1570. 24N 2299 .28W 3.50 2783 .19 226872 .26 2256751 .36 i 3668 .00 68 .40 300. 50 1576 .16 1600. 41N 2351 .03W 3.21 2842 .79 226821 .20 2256782 .69 3731 .00 66 .80 301. 40 1600 .17 1630. 37N 2400 .98W 2.86 2900 .82 226771. 94 2256813 .76 3794 .00 65 .40 303. 00 1625 .69 1661.05N 2449 .72W 3.21 2958 .29 226723 .90 2256845 .53 3857 .00 64 .00 305. 50 1652 .62 1693. 10N 2496 .80W 4.22 3015 .21 226677. 56 2256878 .63 3921 .00 62 .30 305. 50 1681 .52 1726. 26N 2543 .28W 2.66 3072 .31 226631. 84 2256912 .83 3984 .00 61 .90 306. 70 1711 .00 1759. 06N 2588 .27W 1.80 3127 .98 226587. 60 2256946 .63 4048 .00 61 .70 306. 60 1741 .25 1792. 73N 2633 .52W 0.34 3184 .38 226543. 12 2256981 .31 4111 .00 61 .80 306. 60 1771 .07 1825. 82N 2678 .07W 0.16 3239 .87 226499. 32 2257015 .39 4175 .00 61 .90 307. 50 1801 .26 1859. 81 N 2723 .11 W 1.25 3296 .29 226455. 06 2257050 .40 4238 .00 61 .60 308. 20 1831 .08 1893. 87N 2766 .93W 1.09 3351 .76 226412. 02 2257085 .43 4300 .00 60 .20 307. 10 1861 .23 1926. 96N 2809 .82W 2.74 3405 .91 226369. 89 2257119 .47 4363 .00 58 .90 306. 10 1893 .16 1959. 34N 2853 .42W 2.48 3460 .21 226327. 03 2257152 .83 4426 .00 57 .90 306. 60 1926 .17 1991. 14N 2896 .63W 1.73 3513 .87 226284. 54 2257185 .60 4489 .00 56 .60 306. 10 1960 .25 2022. 55N 2939 .31 W 2.17 3566 .85 226242. 59 2257217 .96 4552 .00 55 .30 304. 40 1995 .53 2052. 68N 2981 .93W 3.04 3619. 04 226200. 66 2257249. 04 4616 .00 54 .30 304. 10 2032 .42 2082. 11 N 3025 .15W 1.61 3671. 31 226158.11 2257279. 43 4678 .00 53 .20 303. 70 2069 .08 2110. OON 3066 .65W 1.85 3721. 28 226117. 25 2257308. 25 4741 .00 51 .90 304. 10 2107 .39 2137. 89N 3108.17W 2.12 3771. 26 226076. 37 2257337. 07 4804 .00 50 .60 303. 50 2146 .82 2165. 23N 3148 .99W 2.19 3820. 36 226036. 17 22 7365. 31 4866 .00 49 .40 303. 50 2186 .67 2191. 44N 3188. 60W 1.94 3867. 81 225997. 17 2257392. 41 4929 .00 48 .30 303. 20 2228 .13 2217. 52N 3228. 22W 1.78 3915. 20 225958. 14 2257419. 38 4993 .00 47 .30 304.40 2271 .12 2243. 89N 3267. 62W 2.09 3962. 57 225919. 35 2257446. 63 5056 .00 46 .10 302. 90 2314 .32 2269. 30N 3305. 78W 2.57 4008: 38 225881. 77 2257472. 89 5119 .00 45 .10 304. 60 2358 .40 2294. 30N 3343. 21 W 2.50 4053. 36 225844. 92 2257498. 72 5183 .00 43 .90 304. 30 2404 .05 2319. 68N 3380. 20W 1.90 4098. 20 225808. 51 2257524. 93 5246 .00 42 .70 302. 90 2449 .90 2343. 59N 3416. 18W 2.44 4141. 37 225773. 07 2257549. 64 5310 .00 41 .50 304. 10 2497 .39 2367. 26N 3451. 96W 2.26 4184. 23 225737. 84 2257574. 12 5373 .00 40 .20 303. 00 2545 .04 2390. 04N 3486. 30W 2.36 4225.40 225704. 02 2257597. 66 5436 .00 39 .10 303. 00 2593 .55 2411. 94N 3520. 01 W 1.75 4265. 55 225670. 81 2257620. 31 5499 .00 38 .20 303. 60 2642 .75 2433. 54N 3552. 90W 1.55 4304. 85 225638. 42 2257642. 65 5563 .00 37 ,50 303. 30 2693 .28 2455. 18N 3585. 66W 1.13 4344. 08 225606. 15 2257665. 02 5626 .00 36 .00 303. 40 2743 .76 2475. 91 N 3617. 15W 2.38 4381. 74 225575. 14 2257686. 45 5688 .00 35 .20 304. 00 2794 .18 2495. 93N 3647. 18W 1.41 4417. 80 225545. 57 2257707. 14 5814 .00 35 .50 305. 70 2896 .95 2537. 59N 3706. 99W 0.82 4490. 68 225486. 71 2257750. 13 5940 .00 35 .30 305. 40 2999. 65 2580. 02N 3766.38W 0.21 4563. 67 225428. 29 2257793. 90 6065 .00 35 .30 305. 30 3101 .67 2621. 81 N 3825. 29W 0.05 4635. 90 225370. 33 2257837. 00 6191 .00 35 .40 306. 70 3204 .44 2664. 66N 3884. 27W 0.65 4708. 79 225312. 34 2257881. 17 6318 .00 35 .40 306. 60 3307 .96 2708. 58N 3943. 29W 0.05 4782. 36 225254. 32 2257926. 40 6445 .00 35 .20 305. 60 3411 .61 2751. 82N 4002. 58W 0.48 4855. 74 225196. 02 2257970. 96 6570 .00 35 .30 306. 20 3513. 69 2794. 12N 4061. 02W 0.29 4927. 88 225138. 55 2258014. 57 6697 .00 35 .20 305. 20 3617 .41 2836. 89N 4120. 54W 0.46 5001. 18 225080. 01 2258058. 67 6824 .00 35 .40 306. 20 3721. 06 2879. 72N 4180. 14W 0.48 5074. 56 225021. 39 2258102. 82 6950 .00 35. 40 305. 70 3823. 76 2922. 57N 4239. 23W 0.23 5147.55 224963. 29 2258146. 99 7076 .00 35 .40 306. 00 3926. 47 2965. 31 N 4298. 39W 0.14 5220. 54 224905. 10 2258191. 06 7203 :00 35. 20 304. 00 4030. 12 3007. 40N 4358. 49W 0.92 5293. 91 224845. 96 2258234.49 7329.00 35 .30 304. 20 4133 .02 3048. 17N 4418. 71 W 0.12 5366: 59 224786. 68 2258276. 61 7455 .00 35. 40 302. 70 4235. 79 3088. 35N 4479. 53W 0.69 5439. 42 224726. 78 2258318. 15 7580. 00 35. 20 301. 50 4337. 81 3126. 74N 4540. 72W 0.58 5511. 48 224666. 47 2258357. 90 7665 .00 35. 30 301. 90 4407. 23 3152. 52N 4582. 46W 0.30 5560. 41 224625. 33 2258384. 61 7748. 00 35. 30 301. 70 4474. 97 3177. 79N 4623. 22W 0.14 5608. 24 224585.14 2258410. 79 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated r: MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska. (Kenai Penninsula) SURVEY LISTING Page 4 Wellbore: MGO#4 WeNpath: MWD <0-8175> Date Printed: 28-Dec-2005 RAKE~• MU6-!~S ><\TTE(1 Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg Vertical de /100ft Section ft Easting Northing 7909.00 34.30 300.80 4607.17 3225.46N 4701.76W 0.70 5699.82 224507.69 2258460.22 8001.00 34.40 300.90 4683.13 3252.08N 4746.33W 0.12 5751.52 224463.74 2258487.84 8122.00 33.50 299.90 4783.50 3286.28N 4804.61 W 0.88 5818.78 224406.25 2258523.34 8175.00 33.50 299.90 4827.69 3300.86N 4829.97W 0.00 5847.87 224381.22 2258538.49 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertica{ Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Cook Inlet, Alaska (Kenai Penninsula) • .SURVEY LISTING Page 5 Wellbore: MGO#4 Wellpath: MWD <0-8175> Date Printed: 28-Dec-2005 ^ lv~rl~c~ Comments MD ft TVD ft North ft East ft Comment _ 8175.00 I 4827 69 I ~~n0 RRrv an~a a~~nr Projection to TD Hole Sections Diameter in Start MD ft Start TVD ft Start North ft Start East ft End MD ft End TVD ft End North ft Start East ft Wellbore 121/4 120.00 119.98 1,91N 0.16E 3300.00 1474.27 1425.06N 2044.55W MGO#4 81/2 3300.00 1474.27 1425.06N 2044.55W 8175.00 4827.69 3300.86N 4829.97W MGO#4 Casin s Name Top MD ft Top TVD ft Top North ft Top East ft Shoe MD ft Shoe TVD ft Shoe North ft Shoe East ft Wellbore 13 3/8" Conductor " 0.00 0.00 O.OON 0.00E 116.00 115.98 1.78N 0.15E MGO#4 9 5/8 Casin " 0.00 0.00 O.OON 0.00E 3283.00 1470.82 1416.97N 2030.OOW MGO#4 3 1/2 Liner 0.00 0.00 O.OON 0.00E 8175.00 .4827.69 3300.86N 4829.97W MGO#4 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5850.15 Feet on azimuth 304.35 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~R ^ MARATHON Oil Company ~~ Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: MGO#d Field: Ninilchik Field Well: MGO#4 INTf?Q Installation: MGO Wellbore: MGO#4 MARATHQN 4800 4400 4000 3600 3200 2800 ^ 2400 .-. r 2000 t 0 1600 Z 1200 800 400 ~ 0 O O N II -400 U -eoo U Scale 1 cm = 200 ft East feet) -> -8000 -7600 -7200 -6800 -6400 -6000 -5600 -5200 -4800 13400 -4000 - 600 -3200 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 800 O MGO #1 10000 O 1 fO00 ^00 0 0 000 00 O `000 00 a~ o° h O MGO#4 b b~~°o00 b^ 00 b° 00 00 ~ `~., 00 O b~ byOb OO 00 ~. 000 ~Op 0 b'~ 00 ~ n~0° 00 O O 090~Oh0000 h ^.~O 00 ^~"~ 00 n~'h 00 '~'~ `L000 00 n~~l. 00 `L1 00 'h^ 000 rlh O '~ 00 0^~ (y00 O `L0' 00 0, ^p 0 ti0 00 0, ry00 00 ~,1 00 '.°j 00 `LSO 00 ~0 ^~00 0 ~ ~ by b00 X60 `L „~00 0000 0 ~h00 ~ ~ rL~00 00 O '~ 0^ 00 b00 ~ ~~, 0' 00 0 h0 0 ~. `L0 O ~O'10 0'10 Op O ^00 00 0j00 ~.. y0 00 ^,y0 ~0 O h0 00 y0 O ~ y0 000 O 00 00 O ~ ~'~ ~ ~b0000 MGO #2 ti., '~ ,100 X000 00 00 00 ~.Yb~O 00 00 00 00 OO r000 000 b00 X00 0j X00 ~_ . - ~ - . .~ . - ~ ~°` ~y ~ ,~~° oA ~o ti~ ti~ tip- ti ti .`~ __ - , ~ 0000 ~^OOO,~pO 0~j00 b00~ 00 b00 by0~,~0~0000000 0000 ,'~00 Ora00 000 ~Op. _O. 0`L00 .~~.00 gyp- n~0~00 00 X000 ~~00 0'^00 `L000 ~°~00 0000 ~10~~ ~ .80 O ~0 y0 000 ObOp O b ,, n~'1 00 O ~ ~~ '~ ' 7F ~?~ 000 O O,yO 000 O "., n~h 000 X00 900 O0; 7 - '76, Sp Op O h b~0 500 00 O ~` -~ - ~ X00 00 0 O O . - _, - ? b ~~ ~jOO O • 00 O^ O 0'00 ti,100 000 00 ~ - 00 ti ~,1o v~ `L 4800 4400 4000 3600 3200 2800 2400 ^ Z 2000 ~' 1600 ~ ..i 1200 800 • 400 -0 ~ N (D -400 n -ao0 0 O -8000 -7600 -7200 -6800 -6400 -6000 -5600 -5200 -4800 13400 -4000 -3600 -3200 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 800 Scale 1 cm = 200 ft East (feet) -> ! i MARATHON Oil Company CLEARANCE LISTING Page 1 MWD <0-8175>, MGO#4 Date Printed: 28-Dec-2005 MARATHON MGO#4, MGO Ninilchik Field, Cook Inlet, Alaska (Kenai Penninsula) 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/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard 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 • Nt~GI~ ttiT)EQ Wellbore Name Created Last Revised MGO#4 12-Deo-2005 28-Dec-2005 Well Name Government ID Last Revised MGO#4 28-Jul-2005 Slot Name Grid Northin Grid Eastin Latitude Lon itude North East MGO#4 2255129.7800 229135.5600 N60 9 52.5063 W151 29 13.6698 3180.14N 2406.14E Installation Name Eastin Northin Coord S stem Name North Ali nment MGO 226657.8540 2252005.1620 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum True Cleara nce Sum ma Offset WeIlName Offset Wellbore Offset Slot Offset Structure Minimum Distance ft MD[ft] Diverging From[ft] Ellipse Separation ft Ellipse MD[ftj Clearance Factor Clearance MD[ftj MGO #3 MGO #3 MGO #3 MGO 39.94 368.82 368.82 38.26 368.82 20.92 410.10 MGO #1 MGO #1 MGO #1 MGO 66.82 695.16 7580.00 61.47 705.38 1.87 7808.40 MGO #2 MGO #2 MGO #2 MGO 115.13 634.79 634.79 110.71 639.76 24.70 705.38 Reference Wellbore Surve Tool Pro ram Surve Name MD ft Surve Tool Error Model MWD <0-1686> 1686.00 Navi Trak Ma Corrected MWD <1748-3225> 3225.00 Navi Trak Standard MWD <3292-3480> 3480.00 Navi Trak Ma Corrected MWD <3543-8175> 8175.00 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • M MARATHON MARATHON Oil Company MWD <0-8175>, MGO#4 MGO#4, MGO CLEARANCE LISTING Page 2 Date Printed: 28-Dec-2005 Ninilchik Field, Cook inlet, Alaska (Kenai Penninsula) ~~~ I?~~T~Q Clearance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ftj Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E MGO #1 0.00 0.00 178.57N 57.44E 17.8 187.58 187.58 16:40 16.40 0.04N 0.00E MGO #1 16.14 16.14 178.59N 57.44E 12.9 187.56 187.35 138.00 137.97 2.52N 0.22E MGO #1 136.68 136.68 178.96N 57.54E 13.1 185.53 184.90 199.00 198.76 7.28N 0.69E MGO #1 196.99 196.98 179.38N 57.63E 12.4 181:28 180.42 259.00 257.87 17.41 N 1.38E MGO #1 255.24 255.22 180.37N 56.92E 16.4 172.19 171.06 319.00 315.73 33.23N 1.64E MGO #1 312.09 312.00 182.26N 54.77E 20.7 158.26 156.83 378.00 371.28 53.04N 0.84E MGO #1 367.68 367.36 185.22N 50.80E 26.0 141.36 139.60 440.00 428.57 76.57N 2.02W MGO #1 425.65 424.90 189.34N 45.05E 34.2 122.26 120.07 500.00 483.17 100.88N 7.20W MGO #1 481.72 480.38 194.07N 38.53E 42.8 103.84 101.16 562.00 539.11 126.43N 15.02W MGO #1 540.06 537.95 199.68N 30.90E 54.4 86.46 83.16 623.00 593.89 151.OON 25.78W MGO #1 597.81 594.76 205.91 N 22.64E 71.3 73.22 69.12 683.00 647.35 173.86N 40.51 W MGO #1 655.22 651.09 212.76N 13.91E 93.5 67.00 61.94 695.16 658.10 178.26N 44.11 W MGO #1 667.07 662.68 214.27N 12.00E 97.3 66.82 61.57 705.38 667.12 181.93N 47.20W MGO #1 676.87 672.27 215.52N 10.41E 101.9 66.89 61.47 743.00 700.03 195.01 N 59.89W MGO #1 713.15 707.74 220.26N 4.41E 115.3 69.51 63.58 808.00 755.98 216.73N 84.83W M O #1 776.82 769.72 229.32N 6.95W 131.5 80.09 73.44 871.00 809.32 238.12N 110.64W MGO #1 839.04 829.71 239.82N 19.70W 138.7 93.21 85.99 934.00 861.42 260.73N 137.89W MGO #1 903.10 890.86 251.86N 34.45W 146.1 .107.91 100.18 998.00 911.98 284.64N 168.96W MGO #1 968.96 952.83 265.68N 51.95W 153.3 125.38 117.14 1060.00 958.56 308.48N 202.22W MGO #1 1030.99 1010.33 279.82N 70.40W 157.5 144.49 135.74 1121.00 1001.41 333.45N 237.68W MGO #1 1090.65 1065.08 294.19N 89.26W 159.6 166.21 156.95 1183.00 1040.03 360.77N 277.71 W MGO #1 1150.34 1119.30 309.18N 109.21 W 162.9 193.23 183.47 1245.00 1073.14 389.84N 321.29W MGO #1 1213.71 1175.83 326.13N 132.28W 164.1 224.34 214.04 1308.00 1101.83 420.90N 367.96W MGO #1 1281.06 1234.30 345.53N 159.47W 166.2 258.26 247.42 1370.00 1124.60 452.02N 416.47W MGO #1 1337.31 1281.80 362.85N 184.12W 168.1 294.36 282.99 1434.00 1141.15 484.58N 468.98W MGO #1 1393.80 1328.69 381.14N 209.77W 168.7 336.25 324.30 1498.00 1153.04 516.49N 523.16W MGO #1 1449.01 1373.72 399.71 N 235.75W 171.7 380.72 368.19 1561.00 1163.97 547.04N 577.16W MGO #1 1501.73 1416.01 418.15N 261.26W 171.9 424.18 411.03 1621.00 1174.81 575.79N 628.70W MGO #1 1561.62 1463.02 439.71 N 291.45W 173.0 464.02 450.20 1686.00 1186.99 607.32N 684.22W MGO #1 1623.61 1510.58 462.77N 323.84W 171.5 505.45 490.88 6570.00 3513.69 2794.12N 4061.02W MGO #1 6442.53 3914.67 2953.45N 3651.59W 138.9 594.81 458.32 6697.00 3617.41 2836.89N 4120.54W MGO #1 6557.50 3972.59 3012.59N 3731.36W 136.1 555.42 407.81 6824.00 3721.06 2879.72N 4180.14W MGO #1 6666.64 4028.54 3068.85N 3806.31 W 131.7 519.68 360.08 6950.00 3823.76 2922.57N 4239.23W MGO #1 6774.50 4086.45 3122.22N 3879.99W 128.4 487.77 316.41 7076.00 3926.47 2965.31 N 4298.39W MGO #1 6878.30 4146.05 3172.20N 3948.72W 124.8 461.83 279.15 7203.00 4030.12 3007.40N 4358.49W MGO #1 6988.02 4213.53 3222.86N 4018.81 W 122.8 442.09 248.79 7329.00 4133.02 3048.17N 4418.71 W MGO #1 7104.40 4289.62 3273.35N 4090.95W 119.4 427.39 224.69 7455.00 4235.79 3088.35N 4479.53W MGO #1 7220.09 4369.66 3320.41 N 4159.93W 117.9 417.03 206.45 7580.00 4337.81 3126.74N 4540.72W MGO #1 7323.60 4445.37 3361.02N 4217.63W 116.9 413.33 196.46 7665.00 4407.23 3152.52N 4582.46W MGO #1 7393.82 4498.84 3388.41 N 4253.96W 115.6 414:67 194.39 7748.00 4474.96 3177.79N 4623.22W MGO #1 7474.25 4562.06 3419.02N 4293.15W 114.9 418.00 194.74 7808.40 4524.37 3195.96N 4652.83W MGO #1 7533.20 4609.74 3439.85N 4320.85W 114.9 420.69 195.73 7909.00 4607.17 3225.46N 4701.76W MGO #1 7624.86 4685.98 3470.49N 4361.44W 115.3 426.70 199.66 8001.00 4683.12 3252.08N 4746.33W MGO #1 7705.35 4755.03 3495.69N 4394.22W 115.6 434.16 206.13 8122.00 4783.50 3286.28N 4804.61 W MGO #1 7818.15 4855.07 3527.35N 4435.52W 117.7 446.61 218.36 8175.00 4827.69 3300.86N 4829.97W MGO #1 7867.90 4900.29 3539.64N 4452.23W 118.4 452.73 224.88 Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Model MGO #1 MGO #1 MWD <0-11600'> .11600.00 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated M MARATHON • MARATHON Oil Company MWD <0-8175>, MGO#4 MGO#4, MGO • CLEARANCE LISTING Page 3 Date Printed: 28-Dec-2005 Ninilchik Field, Cook Inlet, Alaska (Kenai Penninsula) All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Datum #2 187.Oft 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 ~~AKlR`~ M~ t~TFQ MARATHON MARATHON Oil Company MWD <0-8175>, MGO#4 MGO#4, MGO CLEARANCE LISTING Page 4 Date Printed: 28-Dec-2005 Ninilchik Field, Cook Inlet, Alaska (Kenai Penninsula) ~t~ INTE(? Clearance Data Reference MD[ft] Reference ND[ft] Reference Norkh[ft] Reference East[ft} Offset Well Offset MD[ft] Offset ND[ft] Offset North[ft] Offset East[ft] Angle From Highside de .Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E MGO #2 0.00 0.00 156.OON 132.83E 40.4 204.90 204.90 16.40 16.40 0.04N 0.00E MGO #2 16.12 16.12 156.03N 132.84E 35.5 204.89 204.72 138.00 137.97 2.52N 0.22E MGO #2 136.74 136.74 156.63N 132.88E 35.8 203.35 202.78 199.00 198.76 7.28N 0.69E MGO #2 197.39 197.39 157.19N 132.86E 35.6 199.85 199.02 259.00 257.87 17.41 N 1.38E MGO #2 260.26 260.23 158.04N 131.74E 40.9 191.76 190.67 319.00 315.73 33.23N 1.64E MGO #2 321.36 321.24 159.19N 128.59E 47.4 178.93 177.51 378.00 371.28 53.04N 0.84E MGO #2 381.95 381.60 160.41 N 123.55E 55.9 163.37 161.56 440.00 428.57 76.57N 2.02W MGO #2 443.26 442.51 161.42N 116.60E 68.0 146.51 144.19 500.00 483.17 100.88N 7.20W MGO #2 503.42 502.05 161.74N 108.03E 81.2 131.68 128.74 562.00 539.11 126.43N 15.02W MGO #2 562.60 560.35 161.60N 97.93E 96.6 120.19 116.56 623.00 593.89 151.OON 25.78W MGO #2 620.90 617.52 161.28N 86.49E 115.1 115.19 110.92 634.79 604.43 155.62N 28.34W MGO#2 632.93 629.27 161.21N 83.94E 117.5 115.13 110.74 639.76 608.87 157.57N 29.42W MGO #2 637.49 633.73 161.19N 82.95E 121.0 115.15 110.71 683.00 647.35 173.86N 40.51 W MGO #2 679.87 675.03 160.99N 73.45E 135.6 117.98 113.21 688.98 652.64 176.04N 42.23W MGO #2 685.41 680.42 160.97N 72.14E 137.5 118.66 113.85 705.38 667.12 181.93N 47.20W MGO #2 701.63 696.17 160.91 N 68.29E 142.5 120.93 116.04 743.00 700.03 195.01N 59.89W MGO#2 737.35 730.79 160.83N 59.49E 152.9 127.94 122.86 808.00 755.98 216.73N 84.83W MGO #2 .800.90 792.17 160.81 N 43.06E 164.5 144.19 138.89 871.00 809.32 238.12N 110.64W MGO #2 861.79 850.67 160.99N 26.19E 169.0 162.42 156.94 934.00 861.42 260.73N 137.89W MGO #2 923.72 909.70 161.24N 7.47E 175.2 182.64 176.99 998.00 911.98 284.64N 168.96W MGO #2 988.32 970.54 161.23N 14.26W -177.5 206.37 200.54 1060.00 958.56 308.48N 202.22W MGO #2 1048.76 1026.66 160.99N 36.68W -173.0 231.93 225.87 1121.00 1001.41 333.45N 237.68W MGO #2 1110.72 1083.28 160.85N 69.85W -169.9 259.64 253.28 1183.00 1040.03 360.77N 277.71 W MGO #2 1171.55 1137.88 160.83N 88.65W -165.1 292.05 285.30 1245.00 1073.14 389.84N 321.29W MGO #2 1229.35 1188.72 160.69N 116.13W -162.9 328.57 321.33 1308.00 1101.83 420.90N 367.96W MGO #2 1284.90 1236.67 160.35N 144.17W -160.1 368.98 361.17 1370.00 1124.60 452.02N 416.47W MGO #2 1335.20 1279.28 159.91 N 170.89W -155.7 411.79 403.33 1434.00 1141.15 484.58N 468.98W MGO #2 1387.34 1322.74 159.34N 199.69W -152.3 459.65 450.40 1498.00 1153.04 516.49N 523.16W MGO #2 1439.04 1364.83 158.70N 229.70W -149.2 508.91 498.76 Offset Wellbore. Surve Tool Pro rams We{I Wellbore Surve Name MD ft Surve Tool Error Model MGO #2 MGO #2 PGMS <0-2500 2500.00 Gyrodata Unknown Gyro Type 1-Sep-0 THJ MGO #2 MGO #2 MWD<2500-12026'> 12026.00 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #2 187.Oft above Mean Sea Level ) Reference MD's are from Rig; Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • M MARATHON MARATHON Oil Company MWD <0-8175>, MGO#4 MGO#4, MGO r ~ L_J CLEARANCE LISTING Page 5 Date Printed: 28-Dec-2005 Ninilchik Field, Cook Inlet, Alaska (Kenai Penninsula) ~~~ I\TTEt~ Clearance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E MGO #3 0.00 0.00 55.49N 33.19W -30.9 64.66 64.66 16.40 16.40 0.04N 0.00E MGO #3 16.34 16.34 55.52N 33.16W -35.8 64.64 64.49 138.00 137.97 2.52N 0.22E MGO #3 137.65 137.64 56.29N 32.56W -36.3 62.98 62.53 199.00 198.76 7.28N 0.69E MGO #3 198.35 198.34 56.98N 32.11 W -39.6 59.56 58.88 259.00 257.87 17.41 N 1.38E MGO #3 257.12 257.10 57.19N 32.71 W -43.9 52.40 51.45 319.00 315.73 33.23N 1.64E MGO #3 313.87 313.80 56.82N 34.97W -57.5 43.59 42.32 368.82 362.71 49.78N 1.05E MGO #3 359.59 359.40 56.09N 38.26W -77.0 39.94 38.26 378.00 371.28 53.04N 0.84E MGO #3 368.09 367.86 55.91 N 39.OOW -80.7 40.09 38.34 410.10 401.07 64.96N 0.32W MGO #3 396.32 395.93 55.17N 41.92W -93.1 43.05 40.99 440.00 428.57 76.57N 2.02W MGO #3 422.81 422.21 54.33N 45.15W -103.3 48.94 46.68 500.00 483.17 100.88N 7.20W MGO #3 474.88 473.69 52.53N 52.73W -116.7 67.09 64.42 562.00 539.11 126.43N 15.02W MGO #3 528.68 526.57 50.44N 62.41 W -122.4 90.43 87.34 623.00 593.89 151.OON 25.78W MGO #3 580.50 577.11 48.05N 73.59W -121.2 114.75 111.18 683.00 647.35 173.86N 40.51 W MGO #3 631.54 626.41 45.17N 86.44W -115.6 138.23 134.13 743.00 700.03 195.01 N 59.89W MGO #3 681.02 673.53 41.60N 101.10W -110.4 161.05 156.34 808.00 755.98 216.73N 84.83W MGO #3 736.08 725.13 37.02N 119.73W -109.5 185.65 180.15 871.00 809.32 238.12N 110.64W MGO #3 790.55 775.21 32.OSN 140.57W -112.8 210.98 204.58 934.00 861.42 260.73N 137.89W MGO #3 842.04 821.60 26:94N 162.31 W -112.4 238.41 231.05 998.00 911.98 284.64N 168.96W MGO #3 894.57 868.01 21.10N 186.21 W -109.8 267.74 259.26 1060.00 958.56 308.48N 202.22W MGO #3 944.28 911.04 15.08N 210.32W -109.6 297.33 287.63 1121.00 1001.41 333.45N 237.68W MGO #3 992.88 952.24 8.89N 235.36W -108.8 328.28 317.23 1183.00 1040.03 360.77N 277.71 W MGO #3 1040.52 991.57 2.50N 261.44W -105.8 361.90 349.33 1245.00 1073.14 389.84N 321.29W MGO #3 1086.81 1028.72 3.87S 288.32W -105.0 397.57 383.34 1308.00 1101.83 420.90N 367.96W MGO #3 1132.54 1064.57 10.27S 315.98W -104.2 435.88 419.78 1370.00 1124.60 452.02N 416.47W MGO #3 1176.25 1098.39 16.41 S 342.97W -101.5 474.89 456.83 1434.00 1141.15 484.58N 468.98W MGO #3 1218.60 1131.09 22.25S 369.26W -99.2 516.65 496.52 Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Model MGO #3 MGO #3 MWD <0-13771> 13771.00 Navi Trak Ma~orrected _ All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Datum #2 187.Oft 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 Check No Check Date Bank Bank No v o Marathon Oil Company P Direct Inquiries to: ACCOUNTS PAYABLE DEPARTMENT Hndlg 1203845 12/28/2005 NCBAS 7780 5001123 . O. 8ox22164 Tulsa,oK 74tzt-2tsa Accts Payable Contact Center Phone' 918-925-6097 AL InvOi¢eNUmb~r Invgice Dare Document No ..Remit Comment ; Gloss Amount Discount '.Inuaice/Pay Amowt L100.00 12/27/2005 1900068265 100.00 100.00 TOTAL: 100.00 100.00 ~~ ~~~ ;~~~e~~s QI~ ~ G8S ~~t1 s~ wE3al -flitw~90~# AnC~dCl~g~ Tru~u UN rtHroHAt ION BEI.oW AND DETACH CHECK STUB BEFORE DEPOSITING) --•, ' e; : ... ~„.~.~..q- 2 ~,. ~ ~ ~ ' ~~- ' .. .. .,. ~,~ _ __ _ ~ 7780 ACCOUNTS PAYABLE CHECK PAY TO THE ORDER OR ALASKA OIL 8~ GAS CONSERVATION COMMISSION 333 WEST 7TH AVE STE 100 ANCHORAGE, AK 99501-3~'^ Marathon Oi{ Company P. O. Box 22164 Tulsa, OK 74121-2164 U.,S. Funds 66-389/412 CHECK DATE CHECK NUMBER 12/28/2005 1203845 VOID AFTER ' 80 DAYS ,~ ,' ,. MATCH AMOUNT IN WORDS WITH NUMBERS ,' NATIONAL CITY BANK Ashland, Ohio - -.n . 4, -, - .~ II^000 L ZO384511° x:04 L 203895: 0 L8348411' • • TR.ANSvIITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRaNS~'IITTAL LETTER WELL NAME ~~~a ~~'~~~ ~,~ /4"'/~~'~ ~~ ~~,~~`~~ CHECK WHAT I ADD-ONS "CLUE" APPLIES (OPTIOVS) ~ MULTI ~ The permit is for a new wellbore segment of ', LATER4L ~ existing well ~ ~ Permit No, API No. (If A.PI number Production should cantinue to be reported as ' last two (Z) digits ' a function of the original API number stated li are between 60-69) I above. PILOT HOLE ~~ ~, In accordance with 20 AAC 2S.OOS(t), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) 4 and API number (SO - i 70/80) from records, data and logs acquired 4 for well (name on permit). SPACL~iG ;The permit is approved subject to full '. EXCEPTION 'compliance with - 25.Oa~. Approval to perforate an ro oduce 'n'ect is contingent ~ ~ upon issuanc conservation order j ~ ~ approving a ~ ..~ spy iin~a ~~~exception. ~~~ ~~~l~Zrz z~"~--~f~omCwanv/ Na assumes 'the liability of any protest to tie spacing i ~~ exception that may occur. Ail dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. DRY DITCH SAMPLE Rev: 04/01,'05 C\jodyltransmittai_checklist • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMiVIISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF MARATHON OIL ) COMPANY ("MOC") for an order granting )Conservation Order No an exception to the spacing requirements ) of 20 AAC 25.055 (a)(4), allowing drilling, )Grassim Oskolkoff No completion, testing and regular production )Exploratory Gas Well within the same governmental section as ) a well capable of producing from ) the same pool. )November 28, 2005 IT APPEARING THAT: 560 4 MOC, by letter dated October 7, 2005, has requested the Commission issue an order in conformance with 20 AAC 25.055 (a)(4) allowing drilling, completion, testing and regular production of the Grassim Oskolkoff No. 4 (GO No.4) gas exploration well, which if productive may be open to regular production within the same governmental section as a well capable of producing from the same pool. 2. The Commission published notice of opportunity for public hearing in the Anchorage Daily Ne,~vs on October 23, 2005, pursuant to 20 AAC 25.540. MOC supplied additional information to the Commission on November 8, 2005. 4. No protests to the application or requests for hearing were received. FINDINGS: The GO No.4 well is proposed as a deviated well with a surface location 2399 feet from the West Line and 3167 feet from the South Line of Section 23 T1N, R13 W, Seward Merdian (S.M.) and a bottom hole location 2158 feet from the East Line and 1000 feet from the South Line of Section 15, T1N, R13W, SM. 2. The GO No. 4 well will test the Beluga Formation and Upper Tyonek Formation in the central portion of the exploratory Ninilchik Unit. The projected top of the Beluga Formation in the GO No. 4 well is constrained by abundant well and seismic data and is anticipated to be penetrated at a distance greater than 2000 feet from the external boundary of the Ninilchik Unit. 4. The GO No. 4 well will be drilled within 3000 feet of the GO No. 1 development gas well. The GO No.l well is currently producing natural gas from sandstone reservoirs within the Tyonek Formation, from intervals deeper than the section the GO No. 4 will test. The productive portion of the GO No. 1 well is located within the Grassim Oskolkoff Participating Area of the Ninilchik Unit. t Conservation Order 560 November 28, 2005 Page 2 of 2 The GO No. 4 well is anticipated to encounter Beluga Formation gas reservoirs south of Grassim Oskolkoff Participating Area and across to a lease boundary within the Ninilchik Unit. 6. MOC sent notice of the application for exception to the well spacing requirements of 20 AAC 25.055 for the GO No.4 well to all owners, landowners and operators within 3000 feet of the section within the GO. No. 4 well anticipated to be gas bearing. 7. MOC will not complete gas bearing intervals common to the GO No. 1 well within the GO No. 4 well. 8. An exception to the well spacing provisions of 20 AAC 25.055 (a)(4) is necessary for the drilling, completion, testing and regular production of the GO No. 4 well. 9. The Commission received no objections or protests from the public notice regarding the GO No. 4 well. CONCLUSIONS: An exception to the well spacing requirements of 20 AAC 25.055 (a)(4) is necessary to allow drilling, completion, testing and regular production of the Ninilchik Unit, Grassim Oskolkoff No. 4 gas exploration well. 2. Granting a spacing exception to allow drilling, completion, testing and regular production of the Ninilchik Unit, Grassim Oskolkoff No. 4 gas exploration well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Marathon Oil Company's application for exception to the spacing requirements of 20 AAC 25.055 for the purpose of drilling, completion, testing and regular production of the Ninilchik Unit, Grassim Oskolkoff No. 4 gas exploratio,w 11 is granted. '"~~pT anchorage, Alaska and date o e be 2 t ~ ,,~ _ , ;; .~ ~ ~ rn- ~ a 7 F- Chairman ,1 +. ~ ~ v 7• ~, i ~ ^j. Cathy . Foerster, Commissioner ~a, ~~ Vi'i', A$ 33 OS (}8{S provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may File "=~ __`. " vi~~i;,Fhe irommission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23`" day Following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the l0-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appea{ the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10`h day after the application for rehearing was filed). _ t~~ ~" ~ i"r ' ~ ~ ~' ~ ~ Y a~ ;~ ~ ~ ~ ~ ~ i 1~ x a y ~ ~ j ~ , ~ y 1 ~ ~ ~ ~ ! ! ~ ~ ~ .~" ~ ' ' } ~ i 1 I t i ii +~' a ~ 7 9s..i ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~"`, -0 i " q ~ ~ l 16 1 t i Mfrr 1 ~t ~ ~ ~ 1 1 ~ ~ ~ :~ ~~ i.®a A ~ ~ t~._~ m ~ ~ 3..+ ~ .~~ 3 i®h ` i as i h~s~ ~ ~.~ Y 1 ~ uj ALASFA OIL A1QD GAS COI~TSF.R'QATIOI~T CO1rII-IISSIOIQ Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Houston, TX 77253 • FRANK H. MURKOWSKI, GOVERNOR 333 W. 7T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Grassim Oskolkoff # 4 Marathon Oil Company Permit No: 205-190 Surface Location: 3167' FSL, 2399' FWL, Sec. 23, T1N, R13W, S.M. Bottomhole Location: 1000' FSL, 2158' FEL, Sec. 15, T1N, R13W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce /inject 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. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result Permit No: SOS-190 • in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). Sincerely, Cathy . Foerster Commissioner rd DATED this. day of November, 2005 cc: Department of Fish & Game, Habitat Section w/ o encl. Department of Environmental Conservation wJo encl. M Marathon MARATHON Oil Company November 21, 2005 Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 7 ~~~~~~ Fax 713-499 6 NCl V , .~ 205 Alaska Oil $ Gas Eons. Commission Anchorage John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit - Grassim Oskolkoff #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 well in the Beluga / Upper Tyonek. Please note that Marathon is requesting a waiver for 20 ACC 25.035 (c) (1) (b) requiring the ~, vent line to be as large as the hole drilled. The request is specified on page 12 of the attached drilling prognosis. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@marathonoil.com. Sincerely, Willard J. Tank Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA ~ NQV ~ 2005 ALA ~ OIL AND GAS CONSERVATION COMNI.~ION PERMIT TO DRILL 20 AAC 25.005 Alaska Oil & Gaa Cons. Commission llnrhernwe 1a. Type of Work: Drill ~ Redrill Re-entry ~ 1b. Current Well Class: Exploratory Development Oil Multip a Zone ~ Stratigraphic Test ~ Service ~ Development Gas ~ Single Zone 2. Operator Name: Marathon Oil Company 5. Bond: Blanket ~ Single Well Bond No. 5194234 11. Well Name and Number: Ninilchik Unit - Grassim Oskolkoff #4 3. Address: 5 A/L GC - L txlG P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 7,575 ND: 4,350 12. Field/Pool(s): Ninilchik Unit 4a. Location of Well (Governmental Section): Surface: 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. ` 7. Property Designation: ADL 389737 /ADL 384305 Infield Wildcat (Beluga) & Tyonek Pool Top of Productive Horizon: 650' FNL, 368' FWL, Sec. 23, T1N, R13W, S.M. 8. Land Use Permit:. 13. Approxima pud Date: Decem er6 005 Total Depth: 1,000' FSL, 2,158' FEL, Sec. 15, T1N, R13W, S.M. ~ 9. Acres in Property: 3,096 / 2,158 14. Distan Nearest Property: 1,600 ft (fee-private) 4b. Location of Well (State Base Plane Coordinates): Surface: x - 229,136.00 y - 2,255,130.00 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 187 feet 15. Distance to Nearest Well Within Pool: 200 ft. to GO #1 16. Deviated wells: Kickoff depth: 150 feet Maximum Hole Angle: 78.75 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 2,081 Surface: 1,646 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) Driven 13 3/8" 68 L-80 PE 100' 0' 0' 121' 121' 12 1i4" 9 5/8" 40 L-80 BTC 3,183' 0' 0' 3,204' 1,480' 613 sacks / 8 1/2" 3 1/2" 9.3 L-80 EUE 7,554' 0' 0' 7,575' 4,350' 1,194 sacks / 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Votume MD ND Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Plot Shallow Hazard Analysis Property Plat Q Diverter Sketch 0 Seabed Report ~ Drilling Fluid Program 0 20 AAC 25.050 requirements 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 Signature ~ Phone 713-296-3273 Date November 21, 2005 Commission Use Only Permit to Drill Number: API Number: 50- ~ 3 .3 ' Z ® SS 7 Permit pprov Date: ~' ` ~ See cover letter for other requirements. Conditions of approval Samples required Yes ~ No ~ Mud log required Yes ~ No Hydrogen sulfide measures Yes ~ No ~ Directional survey required Yes' No Other ~? ~,.'~, ~ r i.~~' ~ -~ J `.'. i C'~ ~~ ~ ~v . ,,/ ~2r Ztlr r4 Z~- ri,~y Ci~~~C g,(~ APPI~OVEDBY ) . Approved b . THE COMMISSION Date: . ~~ ~~11~~,~ ~. ,~?~ F 10-4 1 Revised 06!2004 ~ t ~ ~ ~~ t ~ Submit inDuplicate ~ ~ ~I ~c • • 'M' MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik Unit Grassim Oskolkoff #4 Original 11/21/05 Originator: W.J. Tank Drilling Superintendent: P.K. Berga North America Drilling Manager: 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 Regulatory Waivers and Special Procedures ........................................................................................................................ 12 Bit Summary .......................................................................................................................................................................... 12 Hydraulics Summary ............................................................................................................................................................. 13 Formation Integrity Test Procedure ....................................................................................................................................... 13 Page 2 of 13 • • General Well Data Well Name Grassim Oskolkoff #4 Lease/License Surface Location 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. WBS Code DX.05.12585.CAP.DRL SlotlPad Grassim Oskolkoff Pad Field Ninilchik Unit Spud Date 12/6/05 (est.) KB Elev. 187 County/Province Kenai Peninsula API No. Ground Level Elev. 166 State !Country Alaska Well Class Development Perm. Datum KB Total MD 7,575' Rig Contractor Glacier Drilling Water Depth NIA Total TVD 4,350' Rig Name #1 Water Protection Depth Comments: Geologic Pro~tram Summary Formation MD -RKB (ft) TVD -RKB (ft) Pore Pressure (psi) Pore Pressure (ppg) Lithology Possible Fluid Content Beluga (Target) 2,573 1,357 8.5 Sandstone Gas /Water Tyonek (Target) 6,385 3,387 9. Sandstone Gas Comments: Surface Location Coordinates From Lease/Block Lines 3,167' FSL, 2,399' FWL, Sec. 23, T1N, R13W, S.M. Latitude 60° 09' 52.509" N Longitude 151° 29' 13.661" W UTM North (Y) 2,255,130.00' UTM East (x) 229,136.00' Tolerance Horizontal Depth Displacement (ft) MD TVD +N!-S +E/ W Tolerance Directional Target (ft) (ft) Location (Y) (X) (ft) Beluga 3,306 1,500 650' FNL, 368' FWL, Sec. 23, T1 N, R13W, S.M. 1,473 -2,031 Circle 250' radius TD 7,575 4,350 1,000 FSL, 2,158' FEL, Sec. 15, T1 N, R13W, S.M. 3,113 -4,557 Circle 250' radius Comments: Page 3 of 13 • • Summary of Potential Drilling Hazards Hazard Event Discussion Coal stability in production hole section Uti{ize an asphanol chemical to protect coals. Use proper mud weight to stabilize coals. Torque concerns in surface and production hole sections Use good hole cleaning techniques with high pump rates. Add lubricant where necessary. 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 (dri-ler or relief driller) is responsible for shutting the well in (ROPE 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 +/- 3,306' MD (1,500' 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 0' - 3,204' MD None None None Production 3,204' - 7,575' MD None Reeves Quad Combo. Pull GR-Neutron to surface inside casing. Basic with GCA, shale density, temperature in and out, i sample collection (10' samples). Completion N/A GR, CCL N/A Coring Requirements: None. Comments: Page 4 of 13 • ! Driilinp Program Summary CONDUCTOR: 1. Move in and rig up rotary drilling rig. PU 16" bit and collars. 2. Drill to +/- 100' RKB. POOH. 3. PU hammer. Drive 13 3/8" conductor to depth. RD hammer. / 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. Nipple up 13 5/8", 5M diverter spool, 11" diverter valve, and 16" diverter line. 6. On top of the diverter, NU 13 5/8" 5M BOP's. Function test diverter and diverter valve. 250/2,000 psi. 7. Set wear bushing. SURFACE: Test BOP's and choke manifold to ~' 1. Drill 12 1/4" directional hole to 3,204' MD (1,480' TVD} as per directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). 2. At TD circulate hole clean. Make wiper trip, TOOH. 3. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,000 psi. 4. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. j 5. Back out landing joint. ND 13 5/8" 5M diverter spool, NU 13 5/8" 5M BOP. 6. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 25012,000 psi. 7. Set wear bushing. Test casing to 2,000 psi. ~' PRODUCTION: PU 8 112" PDC bit and rotary steerable directional BHA. Drill float equipment and 20' of new formation w/ 8 1/2" bit. CBU. Test shoe to leak off. Estimated EMW 19.0 ppg. Drill an 8 1/2" hole to 7,575' MD (4,350' TVD) per the directional program, short tripping as necessary (1,000' or 24 hours, but / can be extended depending on hole conditions). At TD circulate hole clean. Make wiper trip. TOOH. RU logging company. Run open hole logs as per plan. RD logging company. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and laydown BHA and drill pipe. Pull wear bushing. / RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Run control and electric lines out tubing head outlet. Set slips. Cut 3 1/2" casing. ~ 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/8" 5M tubing head adapter and 3 1/8" 5M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. COMPLETION: Completion will be done without arig. / Page 5 of 13 • Casing Program MD (ft) Connection API Ratings ~ Casing Makeup ~ .y o..= ---- o ~, Size Weight O. D. Torque Hole Size m ~- ~ ~- ~ Y (in) Top Bottom (Ibs/ft) Grade / Type ~ (in) (ft-Ibs) (in) C 9 5/8 Surface 3,204 40 L-80 BTC 10.625 N/A * 12 1/4 5,750 3,090 916 31/2 Surface 7,575 9.3 L-$0 8rd 4.5 3,200 81/2 10,160 10,530 207 ~ Comments: * The make up of the buttress connection will be to the proper mark. Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Frac. Form Maximum Surface N a c o Size Weight Depth When Set Grad Press Pressure (in) (Ib/ft) Grade (T'VD) (Ib/gai) (Ib/gal) (ib/gal} (psi) m U ~ 9 5/8 40 L-80 1,480 9.4 19.0 9.2 1,353 3.63 4.28 3.17 31/2 9.3 L-80 4,350 9.6 17.0 9.2 1,646 1.17 11.38 1.41 Comments: Maximum Anticipated Surface Pressure Setting Depth Casing Size TVD MAWP * MASP ** Mud/Gas (in) (ft) (psi) (psi) Ratio 9 5/8 1,480 3,940 1,3 0/100 31/2 4,350 7,067 16 ~ 0/100 * MAWP =Maximum allowable working pressure _/ ** MASP =Maximum anticipated surface pressure Comments: MASP /MAWP CALCULATIONS: Surface casing: 9 5/8" (3,204' MD, 1,480' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (19.0 ppg + 0.5 ppg) x .052 x 1,480' - (.1 psi/ft x 1,480') MASPfrac = 1,501 psi - 148 psi MASPfrac = 1,353 psi MASPnnp = BHPoper, Hole td -Hydrostatic pressure of a gas column ~ MASPnnp = (9.2 ppg x .052 x 4,350') - (0.1 psi/ft x 4,350') MASPnnp = 2,081 psi - 435 psi MASPnnp = 1,646 psi ~ Page 6 of 13 • MASP =MASPfrac = 1,353 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x ND MAWP = (0.7 x 5,750) - (9.4 - 8.3) x .052 x 1,480' MAWP = 4,025 psi - 85 psi = 3,940 psi Production casing: 3 1/2" (7,575' MD, 4,350' ND) • MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. `~ MASPfrac = (17.0 ppg + 0.5 ppg) X .052 X 4,350' - (.1 psi/ft x 4,350') MASPfrac = 3,959 psi - 435 psi MASPfrac = 3,524 psi. MASPbnp = BHPopan node fd -Hydrostatic pressure of a gas column ~ MASPbnp = (9.2 ppg x .052 x 4,350') - (0.1 psi/ft x 4,350') MASPbnp = 2,081 psi - 435 psi MASPbnp = 1,646 psi ~ MASP =MASPbnp = 1,646 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x ND MAWP = (0.7 x 10,160) - (9.6 - 9.4) x .052 x 4,350' MAWP = 7,112 psi - 45 psi = 7,067 psi Page 7 of 13 • • BOPE Program Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gap Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5l8" 5M pipe ram Surface 9 5/8 3,940 1,353 2,000 g q (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1/$" 5M outlets i (1) 13-5/8" 5M diverter spool with 11" 5M valve (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram (1) 13 5/8" 5M blind ram Production 3 1/2 7,067 1,646 2,000 g g 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1l8" 5M outlets (1) 13-518" 5M diverter spool with 11" 5M valve Comments: Blowout Preventers The blowout preventer stack will consist of a 13-518" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. j A diverter spoof will be placed below the blowout preventer and the annular will be used with the diverter valve during surface drilling operations. After the surface hole is completed, the diverter spool will be removed and the BOP will be nippled up on the wellhead. This is due to the need to use a 13 3/8" available well head, set on the 13 3/8" conductor. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 • Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, 13 5/8" x 9 5/8" Fluted PR1 Mandrel 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSL1,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/8" 5M W/ Seal Pocket and 3" H BPV Threads Comments: Control lines and electric cable for the EXCAPE system will be routed through the tubing head side outlet. Directional Program Summary Build Tum Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°/100'} Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/.g (ft) +E/_W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 355.00 0 0 0 2 KOP 150.00 150.00 0 0 0 0 355.00 0 0 0 3 Build up Section 6.00 0 6.00 355.00 4 End of Build 350.00 348.54 6.00 0 6.00 12.00 355.00 20.79 -1.82 13.68 5 Build /Turn Section 6.00 -1.07 5.91 355.00 6 End of Build /Turn 1,542.61 1,155.92 6.00 -1.07 5.91 78.75 303.00 530.92 -580.34 781.50 7 Hold Section 0 0 0 78.75 303.00 8 End of Hold 3,306.29 1,500.00 0 0 0 78.75 303.00 1,473.04 -2,031.07 2,509.00 9 Drop Section -2.00 0 2.00 303.00 10 End of Drop 5,443.79 2,625.86 -2.00 0 2.00 36.00 303.00 2,430.93 -3,506.10 4,265.44 11 TD 7,574.94 4,350.00 0 0 0 36.00 303.00 3,113.18 -4,556.67 5,516.44 Comments: Vertical section calculated from a reference azimuth of 255.91 ° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft} Depth (MD) Grassim Oskolkoff #1 113.74 773.70 Grassim Oskolkoff #2 136.83 701.30 Grassim Oskolkoff #3 40.89 470.68 No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 • • i ~ ~ -, -0 ~ _ ;_ 9.62ti "Surface Casing ~ .. _ i 1000 - --._~ ~ . w ~~ O ~. r ~ t '_ i i ~ , 2000 _ ~_.. _~ ~ . } _ - -. _ ~ ~ ~ GO #4 Top Target ' U ~ ~ j 3000 - --*- - ~. -_. N i ~ _. F- i 4000 .- +-- ~ -..._- .- ~ _ _.... 3500"Production Casing ~ I GO #4 TD Target _ I 0 1000 2000 3000 4000 5000 Vertical Section at 304.34° (1700 ft/in) --~ 1 - __ 4000 --~ . ._ ~ - } _ - GO #4 TD Target I f - ,.'' { 3000 ' ~ ~- ,. 7i i 2000 , ~ ~ ~ .' _ ', .. 1000 -I - --~- -, _- { GO #4 Top Target ~ ~~ 0 ~ ~~- , ~_ X000 .1000 3000 -2000 -1000 0 West(-)/East(+) (1500 ft/in) c L Z s Directional Surveyinct Summary Interval - MD MWD Survey Magnetic Multishot Gyro Multishot Comments 0 - 3,204' X 3,204' - 7,575' X Comments: Drilling Fluid Program Summary Interva l - ND Minimum Inventory From To Density Gel {ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite Gel, Flo-Vis, Soda Ash, Caustic, Barite, Polypac 0 1,480 8.6 - 9.4 j Gel / Gelex Spud Mud Supreme UL, Sodium Meta Bisulfate, D-D, Lubetex Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 1,480 4,350 9.2 9.6,~~ 6% Flo-Pro w/ Safecarb F&M, Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard, Lubetex Comments: See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to control leakoff. Page 10 of 13 • • Drilling Fluid Specifications Interval - TVD LSRV From (ft) To (ft) Density (Ib/gal) Vis (seclgt) 1 min (Ib./100ftz) PV (cP) YP (Ib/100 ftz) Fluid Loss (cc) pH Drill Solids (%) 0 1,480 8.6 - 9.4 60 - 100 N/A 25 - 35 < 10 +/- 9.5 < 5 1,480 4,350 9.2 - 9.6 l 30,000 8 - 12 < 7 +/- 9.5 +/- 7.5 Comments: As a standard practice for long string completions, the dritling mud that will remain above the top of cement on the 3 %" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud prognosis for details. Solids Control Equipment 0 N N ~ U N ~ f0 ~ f0 ~ w ~ rn C a U N ' Y ~ °? U w w ~ p Interval ca ~ u> ~ '~ o 'a ~ c U U U o N Comments 0 - 7,575' MD X X X X Closed Loop System, Fuli Containment Item Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Shaker 2 -Derrick Model 2E48-90F-3TA Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A 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 Program Summary De pth Gauge Top of Cement Open Casing Size (in) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) Slurry Vol (ft3) WOC Time (hrs) Hole Excess (%) 9 5/8 3,204 1,480 12 1/4 0 0 1,003 1,539 8 50 31/2 7,575 4,350 81/2 2,700 1,382 1,611 2,185 N/A 40 Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty WL FW Strength (psi) (in) Slurry Cement Description (Ib/gal} (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 9 5/8 Tail Type I Cement 12 613 2.51 1,539 0 11.28 Fresh 812 0 500 3 1/2 Tail Class "G" 13.5 1,194 1.83 2,185 2,700 9.22 Fresh Comments: See cement prognosis for details and spacer specifications. Regulatory Waivers and Special Procedures AOGCC Regulation 20 ACC 25.035 (c) (1) (b) Requirement for diverter diameter to be at least 16 inches or to meet or exceed hole size. Marathon is requesting a waiver from the above regulation for KBU 11-7. The surface casing for this well is 9 5/8", with a 13 3/8" conductor string. The wellhead system currently available for EXCAPE completions is 13 3/8" slip loc x 13 5/8" flanged. Our intentions are to fit the multibowl head to the 13 3/8" conductor pipe. From there a 13 5/8" 5M diverter spool would be placed on the head and our 13 5/8" 5M BOP stack would be rigged up on top of the diverter spool. The diverter spool has an 11" 5M outlet and valve configuration. The planned surface hole size is 12 1/4". To date, 3 wells have been drilled on the Grassim Oskolkoff pad. The TD of the surface hole (1,480' TVD) on this well is shallower than the 3 existing wells and no gas was detected in these wells above this TVD. No flow control issues have been seen in the surface hole of any of these wells. Once the surface casing is set and cemented, the diverter spool will be pulled and the BOP system will be nippled up on the wellhead. Bit Summary Interval - MD TYPe Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours ROP (ft/hr) 0 3,204 12 '/4 Christensen MXL-1 117 20 - 50 80 - 300 3,204 7,575 8'/2 Christensen HCM 605 M223 Up to 25 Motor Comments: See bit prognosis for additional information. Page 12 of 13 • Hydraulics Summary Rig mud pumps available are shown below. Max Press @ Displacement @ Liner ID Stroke g0% WP 95% eff Max Rate Hole Sections Used Qty Make Model {in) (in) (psi) (gal/stroke) (spm/gpm} On 3 National Oil A600PT 5 8 2,597 2.04 125 / 255 Surface Well 5 8 2,597 2.04 125 / 255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Hole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size {ft) (in) (gpm) (psi) (fpm) (Ib/gal) (32"s) Remarks 0 - 3,204 12 1/4 662 1,915 135 3 - 18's, Actual Data from GO #3 (@ 2,508' MD) 1-16 3,204 - 7,575 8 112 552 2,300 322 5 - 15's Actual Data from GO #3 (@ 7,332' MD) Comments: See separate hydraulics calculations. Annular velocities in the 12'/4", and 8 %" holes were calculated using 5" drillpipe. 5" drillpipe should be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe pressure. Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPS and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 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. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 Marathon Oil Well Grassim Oskolkoff #4 Diverter Stack 13 5/8" 5M Annular Preventer 2 1/16" 5M Manually Operated Valves ~~ ~13 5/8" 5M Cross 13 5/8" 5M Diverter Spool 11" 5M Diverter Outlet 13 5/8" 5M Tubing Head Flange Marathon Oil • Well Grassim Oskolkoff #4 BOP Stack 13 5/8" 5M Cross • To Gas Buster x ooog Marathon Oil Well Grassim Oskolkoff #4 Choke Manifold To Blooey Line x ~~~ x X o00 0 R o008 3" 5M Valves X t 2 9116" 10M Swaco Hydraulically Operated Choke From BOP Stack • Bleed off Line to Shakers x o,08 3 1/8" 5M Manually Adjustable Choke • • Surface Use Plan for Ninilchik Unit -Grassim Oskolkoff #4 Surface location: Anticipated at 3,167' FSL, 2,399' FWL, Sec. 23, T1 N, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Grassim Oskolkoff #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 Grassim Oskolkoff #4. 3) Location of existing wells Well Grassim Oskolkoff #4 will be drilled on Grassim Oskolkoff pad. A pad drawing is enclosed that shows existing wells and the proposed location of Grassim Oskolkoff #4. 4) Location of existing and/or proposed facilities The locations of existing production facilities on the Grassim Oskolkoff pad are shown on the enclosed pad drawing. A flowline will be installed from the Grassim Oskolkoff #4 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Grassim Oskolkoff #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 surface Grassim Oskolkoff #4 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Grassim Oskolkoff #4 and the other existing wells on the pad. 10) Surface ownership Marion Oskolkoff is the surface owner of the land at the Grassim Oskolkoff 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: f ~ Z 4.S Name and Title: Willard J. Tank, dvanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 • //~/ /\ 0~; Fy oa 0 GO N0. 1 WELL ~~//~ GO N0. 2 WELL RM2 PAT 1979 N: 2,255,179.160 E: 228,974.156 GON0.3WELL ELEV. = 163.08' C,O N0.4 WELL PROPOSER LocnnoN 881' FE ` ELEVATED PRODUCTION PAD /.~ ~~ QED J nI /~ \ SECTION LINE OFFSETS ooa BASED ON SURVEYED CORNERS ~ GON0.4 2881' FEL 2399' FWL 3167' FSL SECTION 23 T1 N., R13W., S. M., AK GRID N: 2255130.000 GRID E: 229136.000 I LATITUDE: 60'09'52.509"N LONGITUDE: 151'29'13.661 "W ELEV. 166 FT. 23 24 26 25 LEGEND/NOTES 1. BASIS OF HORIZONTAL COORDINATES AND ELEVATIONS IS NGS MONUMENT V82 AT MILE POST 127.8 OF THE STERLING HIGHWAY. THE ELEVATION OF V62 IS 283.59 FEET (NGVD 29). THE HORI20NTAL COORDINATES ARE ALASKA STATE PLANE NAD 27 ZONE 4 AND ARE BASED ON PUBLISHED COORDINATES FROM THE STATE OF ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES GEOREFERENCING PROJECT PHASE I AND II GPS CONTROL PaNTS. ® NATURAL GAS WELL SURFACE LOCATION SURFACE LOCATION Consulting CICOIJP DIAGRAM Iv~cLane Testing DATE a suRVer.a 8001( N0.: TEL 907.283.421 B FAX 9CI7.2B3.32fi5 PROJECT NO: 053039 DRAWING NO.: 053069 LE t'=100' DRANK BV: MSM ENGINEER APPROVAL Y DAT NORTH 61CT PROCESS ELECT. ~~,~~ OF A~.q ~~~ ~.~~ v %..A .: .............................~ / i+ •:M. SCOTT McLANE;' ~ . /I, s~~'~.. 4928-S . ' `~ ,,/ II~\\\~~~``` M Marathon MARATHON 01 I Company Aloeke Region GO PAD NINILCHIK, ALASKA GO N0. 4 WELL AS-STAKED SURFACE LOCATION KALE DWN. ,~.,, DATE o/x/ae FlLE NO. 7W ORG MOD MSC SVST DWG NQ T NO REV CHND. DATE I'=100 Am. DATE S 0 00 0 00 0001 1 0 I Marathon Oil Company I ,~ ~,% ~ ,• ~ c~~" Project: Grassim Oskolkoff #4 ~,f - . _ ~ ,_r= _ • '' 5 . f 5 J ~ ~' . ~d • i I ~ y . ^~ - . 6 ... t.-_ l G f ~ '~ a _ s - tr` _ r~. ;! ~; ( ^. - J` ""~ ~ _ _ _ ~ >~ r' `~t ~ ~ ~1 fir~Y'-a'te' rt's;'" ~. ; I { ~3' f f~ ~ .. ~'-1 U Project Location ! 1 J>< p ~•--- •--•:. _ - •- ` -~ ~~ _ ~ SE 1/4, NW 1/4, Sec 23, T1N, Rl3W ' ~~, ~:~;~' + ~ ~~ ~ __ - ~ ` ~''~~ _ '~; ;- ~t ~ ~ y -y _ ~ -. ~r t I 7 _ ~ ~ : , I } ~ P /+r' ~ .,~ -j I:. _ I 1 b . 18 r 17. _ ~ .s _ _ ]~(i.. - . - 1 I _ `. ~'~ !_J! y r 1 I ,:.-i .dal`` •'4 ;J_ -i -. y `9fi'v `_. .: ?~i:--" ` - z~ ~ _ _ __= i . t ~ ~, 1 ~°' ~J I L o f ' ' ., ~ ~ - i >" r t .. ,~., _ ~. ,~ ~ Vii. '~ .~~ ~' .. r r ! I ~,,. _ f p-./ t. ~ ~ 2b da r`r i t~ ~-~ 3St .r; ~9 .` ~~`~?93r1 1 't 2 :.p,n [r`, I f r~ i, ~_" g sl ~- Lr . I ._~~, s '~ I.~ ,:.'j : i ``~ , ' ' ' :r' ' ! I _ ~ f. ,~ - /'_-".° `- 'I ham, , _-~~~ ~~ ~ . :~i -- ~e4' _ ~:; - - < '~ - - ~~ .. ~. ~.. ~ . _ ~__ _^31AiK_ L4*K _ i ~,_'~.__../~.-..~~~~--__..._.~~~~T~.. .p. ~~-t~'dCO - 3~::. z}; ~~. ~~- P "Jt C ... i ,T I 1 ~ i1 GLACIER DRILLING RIG #1 ~- MUD PITS AND PUMP ROOM LAYOUT [NTEQ MARATHON Oil Company Location: Kenai Peninsula, Alaska Slot: MGO#4 Field: Ninilchik Field Well: MGO#4 Installation: MGO Wellbore: MGO#4 ,M, MARATHON scale ~ cm = 25o ft East (feet) -> t -5000 -4500 -4000 -3500 -3000 -2500 -2000 -1500 -1000 -500 0 500 o -400 fV 1= U -0 N ~ 400 800 . r 1200 d w ... t 1600 Q. d ~ 2000 t6 _V '~' 2400 d ~ 2800 L V 3200 3600 4000 4400 4800 WELL PROFILE DATA Point - MD Inc Azi TVD NorN East tlep110011 V. Sect Tie on 0.00 0.00 355.00 0.00 0.00 0.00 0.00 0.00 End of Holtl 150.00 0.00 355.00 150.00 0.00 0.00 0.00 0.00 KOP 350.00 12.00 355.00 348.54 20.79 -1.82 6.00 13.68 End of BUildlrurn 1542.61 78.75 303.00 7755.92 530.92 -580.34 6.00 781.50 Target 3308.29 78.75 303.00 7500.00 1473.04 -2031.07 0.00 2509.00 End of Drop 5443.79 36.00 303.00 2625.86 2430.93 -3506.10 2.00 4265.44 T.D. 8 End of Hold 7574.94 36.00 303.00 4350.00 3113.18 -0558.67 0.00 5516 44 MGO#4 T/Target - 9/30/05 3500 3000 2500 2000 ;~ Z O 1500 ~ .-. 1000 rt .-. 500 -0 ~ n 3 II -500 ~ 0 • Created by : Planner Date plotted : 30-Sep-2005 lot re erence is Ref wellpath is MGO#4 Ver 4. Coordinates are in feet reference MGG#4. True Vertical Depths are reference Rig Datum. Measured Depths are refererus Rg Datum. Rig Datum: Glacier 1 Rig Datum to Mean Sea Level. 187.00 ft. Plot North is aligned to TRUE North_ -400 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 4800 5200 5600 6000 Scale 1 cm = 200 ft Vertical Section (feet) -> Azimuth 305.95 with reference 0.00 N, 0.00 E from MGO#4 • MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Kenai Peninsula, Alaska • PROPOSAL LISTING Page 1 Wellbore: MGO#4 Wellpath: MGO#4 Ver 4 Date Printed: 30-Sep-2005 ~~ INTEQ Wellbore Name Crea ed Last Revised MGO#4 28-Jul-2005 30-Se -2005 Well Name Government 1D Last Revised MGO#4 28-Jul-2005 Stot N me Grid No in Grid Eastin Latitude Lon itude No h Eas MGO#4 2255130.0000 229136.0000 N60 9 52.5086 W151 29 13.6612 3180.37N 2406.57E Field Name Eas in Northin Coord S stem Name Aorth Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum True (Created_B_Y_ Comments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5518.61 Feet on azimuth 304.34 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Wellbore: MGO#4 Wellpath: MGO#4 Ver 4 Date Printed: 30-Sep-2005 lNTEQ Well ath Grid Re ort MD[ft] tnc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg. de /1OOft Vertical: Section ft Fasting _ Northing 0.00 0.00 355.00 0.00 O.OON 0.00E 0.00 0.00 229136.00 2255130.00 100.00 0.00 355.00 100.00 O.OON 0.00E 0.00 0.00 229136.00 2255130.00 150.00 0.00 355.00 150.00 O.OON 0.00E 0.00 0.00 229136.00 2255130.00 250.00 6.00 355.00 249.82 5.21N 0.46W 6.00 3.43 229135.66 2255135.22 350.00 12.00 355.00 348.54 20.79N 1.82W 6.00 13.68 229134.65 2255150.82 400.00 13.95 44.81 397.27 31.79N 3.85W 6.00 21.78 229132.87 2255161.86 500.00 18.69 331.57 493.24 57.54N 14.65W 6.00 45.64 229122.65 2255187.85 600.00 23.99 323.76 586.37 88.05N 34.31 W 6.00 79.47 229103.68 2255218.80 700.00 29.54 318.69 675.63 123.OON 62.63W 6.00 122.92 229076.15 2255254.38 800.00 35.23 315.12 760.05 162.OON 99.29W 6.00 175.49 229040.38 2255294.19 900.00 41.00 312.44 838.70 204.62N 143.90W 6.00 236.62 228996.75 2255337.80 1000.00 46.82 310.32 910.71 250.39N 195.95W 6.00 305.63 228945.74 2255384.73 1100.00 52.67 308.57 975.30 298.82N 254.88W 6.00 381.77 228887.91 2255434.48 1200.00 58.54 307.08 1031.77 349.37N 320.06W 6.00 464.20 228823.90 2255486.48 1300.00 64.43 305.76 1079.49 401.48N 390.75W 6.00 552.03 228754.40 2255540.17 1400.00 70.33 304.56 1117.94 454.60N 466.19W 6.00 644.28 228680.17 2255594.97 1500.00 76.23 303.45 1146.69 508.13N 545.55W 6.00 739.95 228602.04 2255650.28 1542.61 78.75 303.00 1155.92 530.92N 580.34W 6.00 781.50 228567.77 2255673.84 1600.00 78.75 303.00 1167.12 561.58N 627.55W 0.00 837.72 228521.26 2255705.55 1700.00 78.75 303.00 1186.63 615.OON 709.81 W 0.00 935.66 228440.23 2255760.81 1800.00 78.75 303.00 1206.14 668.41N 792.06W 0.00 1033.61 228359.20 2255816.06 1900.00 78.75 303.00 1225.65 721.83N 874.32W 0.00 1131.56 228278.17 2255871.32 2000.00 78.75 303.00 1245.16 775.25N 956.57W 0.00 1229.51 228197.14 2255926.57 2100.00 78.75 303.00 1264.66 828.67N 1038.83W 0.00 1327.46 228116.11 2255981.83 2200.00 78.75 303.00 1284.17 882.08N 1121.09W 0.00 1425.41 228035.08 2256037.08 2300.00 78.75 303.00 1303.68 935.50N 1203.34W 0.00 1523.35 227954.05 2256092.34 2400.00 78.75 303.00 1323.19 988.92N 1285.60W 0.00 1621.30 227873.02 2256147.59 2500.00 78.75 303.00 1342.70 1042.34N 1367.85W 0.00 1719.25 227791.99 2256202.85 2600.00 78.75 303.00 1362.21 1095.75N 1450.11 W 0.00 1817.20 227710.96 2256258.10 2700.00 78.75 303.00 1381.72 1149.17N 1532.36W 0.00 1915.15 227629.93 2256313.36 2800.00 78.75 303.00 1401.23 1202.59N 1614.62W 0.00 2013.10 227548.90 2256368.61 2900.00 78.75 303.00 1420.74 1256.01 N 1696.87W 0.00 2111.04 227467.86 2256423.87 3000.00 78.75 303.00 1440.25 1309.42N 1779.13W 0.00 2208.99 227386.83 2256479.12 3100.00 78.75 303.00 1459.76 1362.84N 1861.39W 0.00 2306.94 227305.80 2256534.38 3200.00 78.75 303.00 1479.26 1416.26N 1943.64W 0.00 2404.89 227224.77 2256589.63 3300.00 78.75 303.00 1498.77 1469.68N 2025.90W 0.00 2502.84 227143.74 2256644.89 3306.29 78.75 303.00 1500.00 1473.04N 2031.07W 0.00 2509.00 227138.65 2256648.36 3406.29 76.75 303.00 1521.22 1526.26N 2113.03W 2.00 2606.59 227057.91 2256703.41 3506.29 74.75 303.00 1545.83 1579.04N 2194.31 W 2.0 2703.38 226977.84 2256758.01 3606.29 72.75 303.00 1573.81 1631.33N 2274.82W 2.00 2799.25 226898.53 2256812.10 3706.29 70.75 303.00 1605.13 1683.05N 2354.46W 2.00 2894.09 226820.07 2256865.60 3806.29 68.75 303.00 1639.74 1734.14N 2433.14W 2.00 2987.78 226742.56 2256918.45 3906.29 66.75 303.00 1677.60 1784.55N 2510.76W 2.00 3080.21 226666.10 2256970.59 4006.29 64.75 303.00 1718.67 1834.20N 2587.22W 2.00 3171.26 226590.77 2257021.96 4106.29 62.75 303.00 1762.90 1883.05N 2662.44W 2.00 3260.82 226516.68 2257072.48 4206.29 60.75 303.00 1810.23 1931.02N 2736.31 W 2.00 3348.79 226443.91 2257122.10 4306.29 58.75 303.00 1860.60 1978.07N 2808.76W 2.00 3435.05 226372.54 2257170.77 4406.29 56.75 303.00 1913.96 2024.13N 2879.68W 2.00 3519.51 226302.67 2257218.41 4506.29 54.75 303.00 1970.24 2069.15N 2949.OOW 2.00 3602.06 226234.39 2257264.98 4606.29 52.75 303.00 2029.37 2113.07N 3016.63W 2.00 3682.59 226167.76 2257310.41 4706.29 50.75 303.00 2091.27 2155.84N 3082.49W 2.00 3761.01 226102.88 2257354.65 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5518.61 Feet on azimuth 304.34 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Kenai Peninsula, Alaska • PROPOSAL LISTING Page 3 Wellbore: MGO#4 Wellpath: MGO#4 Ver 4 Date Printed: 30-Sep-2005 ~'rr t INT1E(~ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de /1 OOft Vertical Section ft Easting Northing 4806. 29 48. 75 303. 00 2155. 88 2197. 40N 3146 .50W 2.00 3837 .23 226039 .83 2257397.64 4906. 29 46. 75 303. 00 2223. 11 2237. 72N 3208 .57W 2.00 3911 .15 225978 .68 2257439.34 5006. 29 44. 75 303. 00 2292. 89 2276. 73N 3268 .65W 2.00 3982 .68 225919 .50 2257479.70 5106. 29 42. 75 303. 00 2365. 12 2314. 39N 3326 .64W 2.00 4051 .74 225862 .37 2257518.65 5206. 29 40. 75 303. 00 2439. 72 2350. 65N 3382 .48W 2.00 4118 .23 225807. 36 2257556.16 5306. 29 38. 75 303. 00 2516. 0 2385. 47N 3436 .11W 2.00 4182 .09 225754 .54 2257592.19 5406. 29 36. 75 303. 00 2595. 67 2418. 82N 3487 .45W 2.00 4243 .23 225703 .96 2257626.68 5443. 79 36. 00 303. 00 2625. 86 2430. 93N 3506 .10W 2.00 4265 .44 225685 .58 2257639.21 5500. 00 36. 00 303. 00 2671. 34 2448. 92N 3533 .81 W 0.00 4298 .43 225658 .29 2257657.82 5600. 00 36. 00 303. 00 2752. 24 2480. 94N 3583 .11 W 0.00 4357 .13 225609 .73 2257690.93 5700. 00 36. 00 303. 00 2833. 14 2512. 95N 3632 .40W 0.00 4415 .83 .225561 .16 2257724.05 5800. 00 36. 00 303. 00 2914. 04 2544. 96N 3681 .70W 0.00 4474 .53 225512 .60 2257757.16 5900. 00 36. 00 303. 00 2994. 94 2576. 98N 3730 .99W 0.00 4533 .23 225464 .04 2257790.28 6000. 00 36. 00 303. 00 3075. 84 2608. 99N 3780 .29W 0.00 4591 .94 225415 .48 2257823.39 6100. 00 36. 00 303. 00 3156. 75 2641. OON 3829 .58W 0.00 4650 .64 225366 .92 2257856.50 6200. 00 36. 00 303. 00 3237. 65 2673. 02N 3878 .88W 0.00 4709 .34 225318 .36 2257889.62 6300. 00 36. 00 303. 00 3318. 55 2705. 03N 3928 .18W 0.00 4768 .04 225269 .79 2257922.73 6400. 00 36. 00 303. 00 3399. 45 2737. 04N 3977 .47W 0.00 4826 .74 225221 .23 2257955.85 6500. 00 36. 00 303. 00 3480. 35 2769. 05N 4026 .77W 0.00 4885 .44 225172 .67 2257988.96 6600. 00 36. 00 303. 00 3561. 26 2801. 07N 4076 .O6W 0.00 4944 .14 225124.11 2258022.08 6700. 00 36. 00 303. 00 3642. 16 2833. 08N 4125 .36W 0.00 5002 .84 225075 .55 225 055.19 6800. 00 36. 00 303. 00 3723. 06 2865. 09N 4174 .65W 0.00 5061 .54 225026 .99 2258088.30 6900. 00 36. 00 303. 00 3803. 96 2897. 11 N 4223 .95W 0.00 5120 .24 224978. 42 2258121.42 7000. 00 36. 00 303. 00 3884. 86 2929. 12N 4273 .25W 0.00 5178 .94 224929 .86 2258154.53 7100. 00 36. 00 303. 00 3965. 76 2961. 13N 4322 .54W 0.00 5237 .64 224881 .30 2258187.65 7200. 00 36. 00 303. 00 4046. 67 2993. 15N 4371 .84W 0.00 5296 .34 224832 .74 2258220.76 7300. 00 36. 00 303. 00 4127. 57 3025. 16N 4421 .13W 0.00 5355 .04 224784. 18 2258253.87 7400. 00 36. 00 303. 00 4208. 47 3057. 17N 4470 .43W 0.00 5413 .74 224735 .62 2258286.99 7483. 06 36. 00 303. 00 4275. 67 3083. 76N 4511 .38W 0.00 5462 .50 224695 .28 2258314.50 7500. 00 36. 00 303. 00 4289. 37 3089. 19N 4519 .73W 0.00 5472 .44 224687. 05 2258320.10 7574. 94 36.00 303. 00 4350. 00 3113. 18N 4556 .67W 0.00 5516 .44 224650 .66 2258344.92 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 187.Oft above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5518.61 Feet on azimuth 304.34 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,MGO#4 MGO, MARATHON Ninilchik Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: MGO#4 Wellpath: MGO#4 Ver 4 Date Printed: 30-Sep-2005 ~Sr 1NTEQ Tar ets Name North ft Eas ft TVD ft Latitude Lon itud Eastin Norhtin as R vi d MGO#4 TD - 9/30/05 3111.73N 4522.24W 4350.00 N60 10 23.14 W151 3043.05 224685.05 2258342.70 10-Feb-2003 MGO#4T/Target- 9/30/05 1511.89N 2221.60W 1500.00 N60 10 7.39 W151 2957.57 226949.04 2256691.50 10-Feb-2003 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 187.Ott above Mean Sea Level ) Vertical Section is from O.OON 0.00E on azimuth 305.95 degrees Bottom hole distance is 5518.61 Feet on azimuth 304.34 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ,~~~• MARATHON Oil Company - _ M Location: Kenai Peninsula, Alaska Slot: MGO#4 IN"t'F:(1 Field: Ninilchik Field Well: MGO#4 MARATHON Scale 1 cm = 10o n Installation: MGO _ Wellbore: MGO#4 East (feet) -> East (feet) -> Scale 1 cm = 100 ft -1800 -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 200 -3000 -2800 -2600 -2400 -2200 -2000 -1800 -1600 -1400 -1200 1400 -1- _._L__--~ 2400 MOp., 2400 „3300 1200 .3200 2200 2200 1000 .3100 Mc~ 2000 v 1900 ,3000 ~ 2000 800 1800 ,2900 Z O 1800 /~ 1700 ,2800 ~ - 18~ 600 ~ 1600 . . ,2700 ~ - Q 1600 ~ 2600 ~ 1600 .. , 400 L 2500 , 1400 Q - 1400 Z ,2400 200 ti x - cn ~ o 2300 ~' 0 ~ ~ 1200 i i 1400 1200 ~ 0 3 v u ~* ~ - 3 n a v 1000 +.~ - 1000 0 o ~ o -200 ~ ~ - ~ - -1800 -1600 -1400 -1200 -1000 -800 -600 -400 -200 0 200 -3000 -2800 -2600 -2400 -2200 -2000 -1800 -1600 -1400 -1200 Scale 1 cm = 100 ft East (feet) -> Scale 1 cm = 100 ft East (feet) -> Scale 1 cm = 200 ft East (feet -> -760D -7200 -6800 -6400 -6000 -5600 -5200 -4800 -4400 -4000 -3600 32 0 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 800 3600 -1- i i~-J__L_ i i i i i i i i i i i i i i i i i- i i i i i i A N 3200 t ~ 2aoo O Z ~ 2aoo 0 N u ~ 2D00 ~ 1600 -,- - ~- ~ ~ - r- --~ - -r---~ --~ ~ _ T i - r - ~ - ~-7 -_r--r -7600 -7200 -6600 -6400 -6000 -5600 -5200 -4800 -4400 -4000 -3600 -3200 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 800 Scale 1 cm = 200 ft East (feet) -> 3600 • n 3200 Z O ~" 2800^,, ~D 2aoo v, 2000 3 i N 1600 ~ MARATHON Oil Company 3600 3500 3400 3300 3200 3100 A r 3000 N .... ~ 2900 O Z 2soo 2700 2600 2500 ~ 2400 I I ~ 2300 N (6 U ~ 2200 Location: Kenai Peninsula, Alaska Slot: MGO#4 Field: Ninilchik Field Well: MGO#4 Installation: MGO Wellbore: MGO#4 Scale 1 cm = 50 ft East (feet -> -4800 -4700 -4600 -4500 -4400 -4300 -4200 -4100 -4000 -3900 -3800 37 0 -3600 -3500 -3400 -3300 -3200 -3100 -3000 -2900 -2800 -2700 I I I I I I I ~ ~I 1-_1 I I I I I I I I I I_ I I I I I I I I I I I I I I I I I I I I I I 4800 4600 3600 3500 3400 3300 • 3200 3100 n 3000 Z 2900 ~D 2600 `-' 2700 3600 2600 ~~ 2500 ~~ 3400 2400 ~ CD n 2300 3 M°Oa, II O 2200 ~ -4800 -4700 -4600 -4500 -4400 -4300 -4200 -4100 -4000 -3900 -3800 -3700 -3600 -3500 -3400 -3300 -3200 -3100 -3000 -2900 -2800 -2700 Scale 1 cm = 50 ft East (feet) -> ~ RATHON Oil Comp~y~ BAKER Location: Kenai Peninsula, Alaska Slot: MGO#4 Hu~NES i - Field: Ninilchik Field Well: MGO#4 IfYTEQ Installation: MGO Wellbore: MGO#4 Created by : Planner Date plotted : 40Q-2005 Plot reference is MGO#4. Ref wellpath is MGO#4 Ver 4. Coordinates are in feet reference MGO#4. True Vertical Depths are re/erence Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Glacier 1 Rig Datum to Mean Sea Level: 187.00 ft. Plot North is aligned to TRUE North. 290 280 270 260 250 ~0 80 90 100 10 200 .900 160 190 180 170 Normal Plane Travelling Cylinder - FeetAll depths shown are Measured depths on Reference Well TRUE NORTH 350 0 10 MARATHON 340 20 MARATHON Oil Company CLEARANCE LISTING Page 1 ~l•~ MGO#4 Ver 4, MGO#4 Date Printed: 30-Sep-2005 MARATHDN MGO#4, MGO Ninilchik Field, Kenai Peninsula, Alaska INTEQ Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ff/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard 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 Created Last Revised. MGO#4 28-Jul-2005 30-Sep-2005 Well Name Government ID' Last Revised MGO#4 28-Jul-2005 Slot Name Grid Northin Gri Ea 'n Latitude Lon itude North ast MGO#4 2255130.0000 229136.0000 N60 9 52.5086 W151 29 13.6612 3180.37N 2406.57E Fnstallation N me E' stin N rthin Coord 5 stem Name North Ali nm nt I MGO 226657.8540 2252005.1620 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Ninilchik Field 226657.8482 2252005.1188 AK-4 on NORTH AMERICAN DATUM 1927 datum .True Cleara nce Sum ma Offset WeIlName Offset Wellbore Offset Slot Offset Structure Minimum Distahce ft MD[ft] Diverging From[ft] Ellipse.. Separation ft Ellipse MD[ft] Clearance Factor Clearance MD(ft] MGO #3 MGO #3 MGO #3 MGO 40.89 470.68 470.68 38.79 477.58 16.99 541.34 MGO #1 MGO #1 MGO #1 MGO 113.74 773.70 7574.94 107.97 787.40 1.91 7483.06 MGO #2 MGO #2 MGO #2 MGO 136.83 701.30 701.30 132.55 705.38 28.34 820.21 Reference Wellbore Surve Tool Pro ram' Surve Name. MD ft Surve Tool Error Model Planned 7483.06 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 187.Oft 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 MARATHON Oil Company MGO#4 Ver 4, MGO#4 MGO#4, MGO • CLEARANCE LISTING Page 2 Date Printed: 30-Sep-2005 Ninilchik Field, Kenai Peninsula, Alaska ~r INTEQ C learance`Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle. From Highside de Closest Approach Distance ft Ellipse Separatidn [ft] 0.00 0.00 O.OON 0.00E MGO #3 0.00 0.00 55.26N 33.62W -31.3 64.68 64.68 16.40 16.40 O.OON 0.00E MGO #3 16.34 16.34 55.30N 33.59W -31.3 64.70 64.55 100.00 100.00 O.OON 0.00E MGO #3 99.80 99.79 55.69N 33.29W -30.9 64.88 64.51 150.00 150.00 O.OON 0.00E MGO #3 149.65 149.65 56.20N 32.89W -30.3 65.12 64.60 250.00 249.82 5.21N 0.46W MGO#3 249.12 249.11 56.98N 32.95W -27.2 61.12 60.27 350.00 348.54 20.79N 1.82W MGO #3 346.63 346.48 56.11 N 37.61 W -40.7 50.33 49.06 400.00 397.27 31.79N 3.85W MGO #3 393.90 393.53 55.01 N 42.08W -43.6 44.88 43.34 470.68 465.35 49.49N 10.58W MGO #3 460.21 459.21 52.82N 50.88W -60.2 40.89 38.82 477.58 471.94 51.35N 11.46W MGO #3 466.79 465.70 52.59N 51.89W -61.1 40.92 38.79 500.00 493.24 57.54N 14.65W MGO #3 487.56 486.18 51.84N 55.27W -67.6 41.62 39.34 541.34 532.15 69.59N 21.71 W MGO #3 525.40 523.35 50.34N 62.21 W -79.8 45.69 43.00 600.00 586.37 88.05N 34.31 W MGO #3 578.23 574.90 47.93N 73.50W -93.9 57.24 54.09 700.00 675.63 123.OON 62.63W MGO #3 665.30 658.63 42.57N 96.67W -107.4 88.98 84.83 800.00 760.05 162.OON 99.29W MGO #3 749.78 737.82 35.58N 125.18W -112.9 130.94 125.54 900.00 838.69 204.62N 143.90W MGO #3 831.34 812.03 27.82N 158.07W -114.8 179.35 172.47 1000.00 910.71 250.39N 195.95W MGO #3 908.70 880.32 19.19N 193.36W -115.0 233.21 224.64 1100.00 975.30 298.82N 254.88W MGO #3 984.40 945.13 9.77N 231.30W -114.5 291.58 281.12 1200.00 1031.77 349.37N 320.06W MGO #3 1058.77 1006.34 0.23S 272.31 W -113.4 353.76 341.19 1300.00 1079.49 401.48N 390.75W MGO #3 1131.66 1063.88 10.37S 315.87W -111.8 418.90 404.05 1400.00 1117.94 454.60N 466.19W MGO #3 1202.56 1118.73 20.27S 359.71 W -110.1 486.66 469.49 Offset Wel1'bore Surve Toole. Pro rams Well Welibore Surve Name MD ft Surve Tool .Error Model MGO #3 MGO #3 MWD <0-13771> 13771.00 Navi Trak Ma Corrected All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 187.Oft 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 CLEARANCE LIST{NG Page 3 ~~'~ M MGO#4 Ver 4, MGO#4 Date Printed: 30-Sep-2005 MARATHON MGO#4, MGO Ninilchik Field, Kenai Peninsula, Alaska INTEQ Clearance Data Reference MD[ft] Reference ' TVD[ft] Reference North[ft] Reference East[ft] Offset WeIF ,Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From.... Highside d Closest Approach Distance Ellipse Separation [ft] 0.00 0.00 O.OON 0.00E MGO #2 0.00 0.00 155.77N 132.40E 40.4 204.44 204.44 16.40 16.40 O.OON 0.00E MGO #2 16.12 16.12 155.80N 132.40E 40.4 204.46 204.29 100.00 100.00 O.OON 0.00E MGO #2 99.14 99.14 156.11 N 132.43E 40.3 204.72 204.29 150.00 150.00 O.OON 0.00E MGO #2 148.76 148.75 156.49N 132.45E 40.2 205.02 204.37 250.00 249.82 5.21 N 0.46W MGO #2 252.06 252.04 157.67N 131.60E 46.1 201.71 200.73 350.00 348.54 20.79N 1.82W MGO #2 357.29 357.06 159.69N 125.38E 48.5 188.53 187.16 400.00 397.27 31.79N 3.85W MGO #2 409.68 409.17 160.70N 120.19E 60.6 179.30 177.68 500.00 493.24 57.54N 14.65W MGO #2 514.53 513.02 161.50N 105.81E 80.5 160.34 158.06 600.00 586.37 88.05N 34.31 W MGO #2 615.60 612.33 161.O8N 87.15E 99.0 144.08 140.91 700.00 675.63 123.OON 62.63W MGO #2 713.70 707.88 160.65N 64.91E 118.1 136.84 132.61 701.30 676.76 123.48N 63.06W MGO #2 714.90 709.03 160.65N 64.62E 118.3 136.83 132.60 705.38 680.31 125.OON 64.40W MGO #2 718.66 712.68 160.64N 63.70E 119.1 136.84 132.55 800.00 760.05 162.OON 99.29W MGO #2 808.53 799.52 160.60N 40.55E 136.7 145.31 140.21 820.21 776.44 170.34N 107.68W MGO #2 827.54 817.81 160.63N 35.37E 140.2 149.23 143.96 900.00 838.69 204.62N 143.90W MGO #2 903.68 890.67 160.94N 13.30E 152.8 171.23 165.59 1000.00 910.71 250.39N 195.95W MGO #2 996.67 978.34 160.98N 17.67W 165.5 210.60 204.62 1100.00 975.30 298.82N 254.88W MGO #2 1091.76 1066.05 160.63N 54.35W 175.6 259.89 253.56 1200.00 1031.77 349.37N 320.06W MGO #2 1186.34 1150.99 160.58N 95.93W -176.5 316.37 309.55 1300.00 1079.49 401.48N 390.75W MGO #2 1274.97 1228.16 160.19N 139.49W -170.2 378.76 371.29 1400.00 1117.94 454.60N 466.19W MGO#2 1359.75 1299.86 159.42N 184.71W -164.7 446.61 438.34 Offset Wellbore Surve Tool Pro rams ' WWell Wellbore Surve :Name MD ft Surve Tool Error Model MGO #2 MGO #2 PGMS <0-2500 2500.00 Gyrodata Unknown Gyro Type 1-Sep-O THJ MGO #2 MGO #2 MWD<2500-12026'> 12026.00 Navi Trak Standard All data is in Feet unless othervvise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 187.Oft 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 CLEARANCE LISTING Page 4 ~e~ M MGO#4 Ver 4, MGO#4 Date Printed: 30-Sep-2005 ~j MARATHON MGO#4, MGO Ninilchik Field, Kenai Peninsula, Alaska INTEQ C learance. Data :Reference MD[ft] Reference TVD[ft] Reference North[tt] Reference East[ft] Offset Well' Offset MD[ft] Offset TVD[ft] Offset `North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separatioh [ft] 0.00 0.00 O.OON 0.00E MGO #1 0.00 0.00 178.34N 57.00E 17.7 187.22 187.22 16.40 16.40 O.OON 0.00E MGO #1 16.14 16.14 178.36N 57.01E 17.7 187.25 187.04 100.00 100.00 O.OON 0.00E MGO #1 99.22 99.22 178.56N 57.06E 17.7 187.46 186.96 150.00 150.00 O.OON 0.00E MGO #1 148.69 148.69 178.82N 57.12E 17.7 187.72 187.05 250.00 249.82 5.21 N 0.46W MGO #1 246.93 246.92 179.94N 56.69E 23.2 183.86 182.88 350.00 348.54 20.79N 1.82W MGO #1 343.85 343.65 183.59N 52.29E 23.7 171.63 170.23 400.00 397.27 31.79N 3.85W MGO #1 391.99 391.50 186.62N 48.09E 34.3 163.42 161.76 500.00 493.24 57.54N 14.65W MGO #1 488.65 487.23 194.46N 37.24E 50.1 146.55 144.26 600.00 586.37 88.05N 34.31 W MGO #1 584.93 582.11 204.21 N 24.11E 64.3 130.09 126.90 700.00 675.63 123.OON 62.63W MGO #1 680.13 675.47 215.71 N 9.45E 80.5 117.43 112.94 773.70 738.36 151.38N 88.88W MGO #1 749.78 743.46 225.04N 2.36W 94.4 113.74 108.07 787.40 749.71 156.88N 94.23W MGO #1 762.74 756.06 226.95N 4.74W 97.1 113.84 107.97 800.00 760.05 162.OON 99.29W MGO #1 774.49 767.47 228.73N 6.94W 99.5 114.18 108.14 900.00 838.69 204.62N 143.90W MGO #1 869.31 858.69 245.12N 26.87W 117.9 125.44 117.93 1000.00 910.71 250.39N 195.95W MGO #1 967.88 951.83 265.21 N 52.07W 133.3 150.37 141.74 1100.00 975.30 298.82N 254.88W MGO #1 1061.94 1038.79 286.98N 80.52W 144.1 185.94 176.47 1200.00 1031.77 349.37N 320.06W MGO #1 1154.50 1123.05 310.02N 111.08W 151.9 231.41 221.20 1300.00 1079.49 401.48N 390.75W MGO #1 1260.31 1216.47 339.18N 151.23W 158.2 282.87 271.85 1400.00 1117.94 454.60N 466.19W MGO #1 1357.31 1298.49 369.OON 193.53W 162.2 338.03 326.21 1500.00 1146.69 508.13N 545.55W MGO #1 1451.61 1375.82 400.38N 237.43W 165.0 398.81 386.11 1542.61 1155.92 530.92N 580.34W MGO #1 1491.03 1407.49 414.12N 256.44W 165.9 426.43 413.35 1600.00 1167.12 561.58N 627.55W MGO #1 1545.06 1450.14 433.46N 283.40W 167.0 463.63 450.03 6400.00 3399.45 2737.04N 3977.47W MGO #1 6295.30 3841.03 2876.13N 3550.47W 144.4 629.81 494.61 6500.00 3480.35 2769.05N 4026.77W MGO #1 6387.33 3887.01 2924.48N 3613.87W 141.8 600.01 456.32 6600.00 3561.25 2801.07N 4076.O6W MGO #1 6481.11 3934.05 2973.14N 3678.77W 138.9 571.34 418.59 6700.00 3642.16 2833.08N 4125.36W MGO #1 6567.80 3977.81 3017.72N 3738.89W 136.0 544.16 381.96 6800.00 3723.06 2865.09N 4174.65W MGO #1 6656.37 4023.15 3063.44N 3799.70W 132.8 519.61 347.35 6900.00 3803.96 2897.11 N 4223.95W MGO #1 6745.75 4070.65 3107.93N 3860.95W 129.6 497.33 315.15 7000.00 3884.86 2929.12N 4273.25W MGO #1 6827.23 4116.23 3147.57N 3915.63W 126.8 478.69 287.03 7100.00 3965.76 2961.13N 4322.54W MGO #1 6912.07 4166.30 3187.84N 3971.02W 123.9 463.87 263.31 7200.00 4046.67 2993.15N 4371.84W MGO #1 7000.31 4221.33 3228.17N 4026.97W 121.2 452.42 243.76 7300.00 4127.57 3025.16N 4421.13W MGO #1 7094.31 4282.83 3268.90N 4085.22W 118.7 443.12 227.26 7400.00 4208.47 3057.17N 4470.43W MGO #1 7'185.39 4345.19 3306.34N 4140.03W 116.6 435.82 213.79 7483.06 4275.67 3083.76N 4511.38W MGO #1 7257.42 4396.50 3334.89N 4181.74W 115.3 431.65 205.24 7500.00 4289.37 3089.19N 4519.73W MGO #1 7270.01 4405.66 3339.83N 4188.83W 115.0 431.09 7574.94 4350.00 3113.18N 4556.67W MGO #1 7335.82 4454.55 3365.56N 4224.58W 114.1 430.01 Offset Welibore Surve Tool Pro rams Well Wellbore S rve N me MD ft Surve Tool Error Mod l ' MGO #1 MGO #1 MWD <0-11600'> 11600.00 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 187.Oft 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 I File Edit Profiles Table Tools Offset Data Units Window Help J J~ ~ ~ ~J~ -J ~~° ~ ~ ~ ~3D ~ ~~ /ellbore Details) Dffset Data Wellpath ITargetsl Comments) Errors) Hole SectionsJCasi Name MG02t4Ver4 Start MD ~~ ft TVD ~ ft Section r' Default t " SF MD [ft] Inc [deg] i Azi (deg] TVD [ft] 154' 3301... .. ...... 5443 -I _ __ ___. 7574 -11 - i ~i I i North [ft] _1s1 XJ =L1gJI ~JJ~JQJ xJ~J~1 J ID 778560 North ~- East ~- Azimuth ~ r East [ft] DL5 Tface VS (ft] rae.,~innr~i rae.,i 355.000: 15QC10 N 0.00: 4 N 20 7 4s ' E U i ii i' r r r 303.000: :, ~ . ' 1155.5? N 530.52 ~, W F r r n r r r r N 1473.04 .......... W LIJ ~~ 1 __._.. .r r.r r• 2625.8E. fJ 243CI 93: _. W ~Ffll 1 i'~; 303.000~ ~ ~ ~ N 311318, __W 455E F 7 __ ~....... 1: 781 tie • • L~.ar: ai_a~e - Target. {" St.raiglit l" 2D 8~_nId C' 'D Drop C` 3D Arc ~l: ';+.:'ellp.yth C `.;~;r'I t' Field OtJE Coordinates MD TVD Field (' Installation ~: Slot f" Slot C: Rig Datum (~' Field C' Installation C Slot C: Rig Datum Datum P: Glacier 1 [187.0] 28Ju1-2005 Paradigm Geophysical Ltd. 2003 • • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN Well Grassim Oskoloff #4 Prepared by: Ton3~ Tykalsky Reviewed by: Hal Martins Presented to: Will Tank November 4, 2005 IFE Kenai Peninsula, Alaska C: ~rrf Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the Grassim Oskoloff #4 Well to be drilled later this year. The following is a brief synopsis of the program. Overview: GO #4 is an excape development well targeting the Beluga formation at the Grassim Oskolkoff field. A modified spud mud is recommended for the surface interval. This spud mud will rely on a limited amount of MI Gel and but be enhanced with F1oVis for hole cleaning. Due to the high angle of the well, it is expected that products such as D-D, Lubetex, and Klagard maybe needed in the surface interval. The production interval will be the standard Ninilchik production interval fluid used in the past. After logging the production interval, the well will be completed with 3-1/2" tubing string cemented in place. Surface Interval: The spud mud will be made up of between 5 - 10 ppb Gel and 1 - 1.5 PPB F1oVis. Drilling detergent and Lubetex may be required to reach TD of the interval. Drill solid should be kept to a minimum to maximize the effectiveness of lubricants. The centrifuge van maybe utilized in this interval in order to keep drill solids to a minimum. Fluid loss should be kept below 10 cc's API throughout the interval. 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 3-1/2" completion string cemented in place. Corrosion control will be added to the F1oPro fluid that will be left in the 3-1/2" x 9-5/8" annulus. Tony Tykalsky Project Engineer M-I Drilling Fluids Reference Well: GO #1, GO #2, GO #3. NOTE: This program is provided as a wide only. Well conditions will always dictate fluid properties required. IFE • • _~~.'~~ Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids HSE control services to our customer. Our goal for GO #4 is to remove drill solids from the mud system at a cost of less than $0.42 per pound. /~ Our goal for GO #4 is to drill the well at a fluid cost of less than $37.12 per foot with a total volume of fluid used less than 3977 barrels. Use of the MI Swaco centrifuge van for the last five years has provided an estimated ~, savings in dilution and disposal costs to Marathon Oil of over $1,000,000. With :' IFE continued usage of our equipment, we expect to provide more savings to you during future operations. IFE • • '~~ Marathon Oil Company ~° Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 i Benchmark 4 Interval ft ~~ Fluid cost per foot Volume Usage Solids Removal 0 - 3204' < $18.37 ft < 1801 bbls 3204 - 7575' < $50.87 ft < 2176 bbls Total Project Avg. Max. Targets for < $37.12 < 3977 bbls < $0.421b o Spills from Centrifug Drilling Van Operation Interval IFE • • Marathon Oil Company Well Name: Grassim Oskoloff #4 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" 3204' 1480' Gel/F1oVis Mud 8.6 - 9.4 5 $62,762 Screens 150/180 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" 7575' 4350' Flo-Pro 9.2 - 9.6 % 7 $226,250 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 3-1/2" 8-1/2" Completion 7575' 4350' 6% KCl 8.55 3 $5,598 - 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 & 2% EMI 920 concentration for the production interval. IFE • .~: == IFE • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Product Usage Summary PRODUCT Surface 12-1/4" Production 7" Com letion P 3-1/2" Total Usage % of Total Cost ', M-I Bar 0 1306 0 1306 3.38 M-I Gel 180 0 0 180 0.53 Soda Ash 9 22 0 31 0.16 Caustic Soda 9 22 0 31 0.37 Con or 404 0 7 0 7 3.04 Sodium Meta Bisulfate 18 22 4 44 0.99 Bicarb 9 22 0 31 0.19 Con or 303A 0 0 4 4 0.66 F1oVis 108 174 0 282 1911 Desco CF 9 0 0 9 0.15 DualFlo 0 87 0 87 2.45 Polypac UL 36 0 0 36 1.94 Greencide 25G 0 6 0 6 3.39 EMI 920 0 35 0 35 11.71 KCl 0 917 42 959 4.15 Kla and 0 49 0 49 11.71 Safecarb 0 218 0 218 1.43 D-D 14 0 0 14 2.31 Lubetex 29 87 0 116 29.28 Defoam X 0 12 0 12 0.36 Asphasol Su reme 0 87 0 87 2.53 En ineer Service 5 7 3 15 IFE • • Marathon Oil Company IFE Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Offset Well Information Well Hole Size GO #1 12.25" .5" MD 945 1479 1897 2468 2500 3488 4138 4762 5248 5617 6290 6567 6976 7358 TVD 931 1396 1710 2010 2024 2473 2762 3100 3293 3495 3840 3977 4202 4474 PPG 8.6 8.8 8.9 9.6 9.4 9.45 9.55 9.7 10.1 9.75 9.75 9.8 9.55 9.8 PV YP 14 26 20 32 20 35 22 32 18 26 8 22 9 27 9 24 13 29 10 23 10 24 10 21 9 23 8 18 FL Comments 9.9 Spud in, drlg ahead 7.4 Short trip, OK - 2% lubetex 7.3 Trip for bit & motor - 2-1/2% lubetex 7.6 Drlg ahead w/short trip -added D-D with good results 9 Drlg to T.D., run casing/added D-D w/good results 9.8 Drig out, displace mud, drlg ahead 9.8 Run solids van, add lubetex for sliding 10.8 Added DD for clays, running solids van 8.8 Running centrifuge van for dry jobs 8.1 Drlg ahead, dill stuck, work free, short trip 6.9 Condition mud, drlg ahed 7.2 Drlg ahead POH for BOPS & BHA 8.5 RIH drlg ahed 7.3 Drlg ahead, short trip, weight up for running shale GO #2 12.25" 866 853 9 15 33 10 Spud in, drlg to 866, trip for BHA 1163 1121 9.65 21 42 7.2 Drlg ahead, hard to slide/added D-D &lubetex 1495 1430 9.6 16 44 6.2 Drlg ahead, added Lubetex to help slide 1695 1559 9.45 13 40 6.9 Drlg ahead, trip fo new BHA, drlg ahead 2240 1897 9.8 13 37 8 Drlg ahead, run centrifuge and desilter for solids 2500 2012 9.75 14 38 8 Drlg to csg point, cond hole run casing 8.5" 2935 2197 10.1 8 28 7.8 Drlg out, disp to new mud, drlg ahead 3639 2501 10.05 10 29 7 Solids building up, start centrifuge van, 4355 2803 10.1 11 30 8.4 Drlg ahead, run centrifuge van 4702 2950 10.1 13 31 8.2 Drlg ahead, run centrifuge van 5344 3224 10.15 14 31 8 MBT increasing, dump and dilute 5727 3384 10.2 13 26 8.2 MBT increasing, dump and dilute 6247 3604 10.25 14 24 7.5 Rig repair, circulate & cond mud 6507 3714 10.1 14 31 8.9 POH test BOPE 6667 3782 10.35 17 33 8 RIH, mad pass log well, 7030 3936 10.2 16 28 7.3 Drlg ahead 7345 4107 10.2 17 23 7 Short trip, backream as needed 7788 4422 10.3 16 28 7.5 Stuck @ 7113', coal, backream, add lubetex to 2% GO #3 12.25" 1078 1028 8.8 12 27 15 Spud in, drlg ahead 2396 1740 9.3 14 20 11.8 Drlg ahead, short trip, OK 2508 1774 9.65 15 22 8.2 Drlg to csg point, cond hole run casing 2508 1774 9.6 15 21 8.8 Run & cement casing, OK 8.5" 2528 1781 9.8 13 37 8 RIH drlg out shoe, POH, M/U Autotrack BHA, RIH 3858 2238 9.55 15 29 5.6 RIH w/autotrack, drlg ahead 4891 2591 9.7 14 23 6.2 Drlg ahead, short trip, tight, RIH drlg ahead 6414 3112 9.5 22 27 4:6 Drlg ahead, pump sweeps every 300' 7332 3428 9.6 17 23 5 Drlg to csg point, sweep hole, POOH for logs 7332 3428 9.7 16 23 4.4 Log well, condition hole, run & cmt 7" casing 6.125" 7332 3428 9.6 10 24 4 Drlg out cmt, disp to new mud, drlg ahead 8190 3724 9.6 10 24 4 Drlg ahead 9598 4469 9.6 10 21 4.2 Drlg ahead, short trip, OK POH for core. • C Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the formation - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained 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 F1oPro fluid, the low shear rate rheology should be maintained around 30,000 cps. In addition to adequate additions of F1oVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - 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 determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. IFE ~~ Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 0 - X204' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / F1oVis /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate / D-D /Lubetex Solids Control Shale Shakers / Desilter /.Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, bit balling, hole cleaning nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./100ft2) (ml/30min) (%) 0 - 3204' 8.6 - 9.4 60 - 100 25 - 35 < 10 +/- 9.5 < 5% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 5 - 10 PPB M-I Gel and 1 - 1.5 PPB F1oVis. - Add 1 - 2 PPB Polypac UL to maintain API fluid loss < 10 cc's. - Add more F1oVis as needed to maintain sufficient viscosity for hole cleaning. - Add D-D if bit balling occurs. - Add Lubetex if needed to aid in directional control. - Run centrifuge van to keep drill solids to a minimum. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1801 barrels. - Estimated haul off volume - 3737 barrels. IFE E~~ • • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Interval Summary - S-1/2" hole 3204 - 7575' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / SafeCarb F & M, Asphasol Supreme / Lubetex / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Kla and Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (ml/30min) (%) 3204 - 7575' 9.2 f . ' 8 - 12 20 - 30,000 < 7 +/- 9.5 +/- 7.5 .~ - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Conqor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval - 2176 barrels. - Estimated haul off volume - 3385 barrels. - Condition mud prior to running 3-1/2" excape completion. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. IFE ~~ • • Marathon Oil Company ~ IFE Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Intermediate Interval Fluid Formula M~ SVVi4C__~_ f~ MUDCALC 4.5 -Water-Based Mud Calculation 8-1/2" Interval from 3204 - 7575' Innu+ Descri tion GO #4 Production Interval Mud Wei ht ` 9.4 Preh drated Gel `'' No Wei ht Material Code MI Bar Preh drated Gel Conc. Wei ht Material SG 4.2 KCI Chloride Wei ht Material Price KCl Wt% 6 Out ut -1 bbl Order of Products Concentrati on Volume Product Addition. Field, Ib Lab, m Field, bbl Lab, ml Usa e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosi 4 DualFlo 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 8.00 8.00 0.021 7.26 Inhibition 7 As hasol Su reme 4.00 4.00 0.010 3.33 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 30.24 30.24 0.021 7.20 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If for ue becomes a roblem add u to 5% of the followin 13 Lubetex 14.00 14.00 0.041 14.43 Lubrici 14 EM1920 7.00 7.00 0.020 7.21. Lubricity Total 394.8 394.8 Calculated Mud Wei ht 9.400 Total Chloride 29600 Estimated Volume 2176 8 barrels IFE ~,;~ • Marathon Oil Company Well Name: Crrassim Oskoloff #4 Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Grassim Oskoloff #4 Volumes: Tubing Volume 4-1 i2"Tubing 117.31 barrels Annular Volume Casing x Tubing 196.51 barrels 3.50 x 3.992 x 7575 ft Total Annular Volume 196.51 Tubing Volume 117.31 Total Hole Volume 313.82 r 9.625 x 8.681 @ 3204 ft MD ~ 8.500 x 3.50 @ 7575 ft MD Treatment Procedures. 1. After the 3-1 /2" tubing is run and the drilling fluid is conditioned, build at least 150 barrels of 6% KCL brine. 2. Prior to cementing, add 2 drums Conqor 303A and 4 sacks Sodium Meta bisulfate to 200 barrels of drilling fluid. 3. Pump the 200 barrels of drilling fluid and begin the cement job.Displace the cement with 6% KCI brine. 4. This procedure will place corrosion control in the 3-1 /2" x 9-5/8" annulus. IFE E~i.r • • Marathon Oil Company ~FE Well Name: Crrassim Oskoloff #4 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. IFE • • ~'~~ Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~~ 'IFE • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE M-I BAR Weighting Agent *1 0 0 E M-I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E XCD Viscosifyer 1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Garb F,M,C Bridging and weighting agent *1 0 0 E LO WATE Weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SPERSENE CF Dispersant 1 1 0 E TANNATHIN Dispersant 1 1 0 E VENTROL 401 Surfactant ? ? ? ? SALT (Solar) Densifier 1 0 0 E BROMIDE (Naar) & Brine Solution Densifier 1 0 0 F POTASSIUM CHLORIDE - Shale Inhibitor 1 0 0 E IFE • ~ i~ IFE Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE CAUSTIC SODA Ikalinity control 3 0 ~ X CAUSTIC POTASH pH Modifier 3 0 ~ X BORAX SAPP SODA ASH SODIUM BICARBONATE Inorganic Borate Sodium Pyrophosphate Ikalinity control Ikalinity control ~ 0 *~ 0 ~ ~ ~ 0 0 0 0 0 E E E E CITRIC ACID 310BAN BP-PLUS pH Adjuster Biocide ~ 0 *2 0 0 0 E J GREEN CIDE 25G - Biocide 3 0 0 J )EFOAM X - ~-SEAL Defoamer Sized graphite LCM ~ ~ ~ ~ 0 0 J E :LA-GARD UBE TEX -D CWT oncor 404 4FEKLEEN ~phasol D ~Itex u'Ifate eta Shale Control agent Lubricant Detergent Corrosion Inhibitor Drilling fluid additive Shale Inhibitor Shale Inhibitor Oxygen Scavenger 0 ~ ~ ~ 2 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1 0 0 0 0 0 0 0 0 J J J J J J J ~ • • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~~ • ~~ • Marathon Oil Company Well Name: Grassim Oskoloff #4 Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 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 / Dave Drilling Foremen 907 283-1312 Morris Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. IFE WELL PERMIT CHECKLIST Field & Pool NINILCHIK, GO TYONEK UNDEF GAS -562540 Well Name: NINILCHIK UNIT GRASSIM OSKOLKOFF 4 Program EXP __ Well bore seg ^ PTD#:2051900 Company MARATHON OIL CO Initial ClasslType EXP / 1-GAS GeoArea _ Unit On1Off Shore On Annular Disposal ^ Administration 1 Permikfeeattached- - - - Yes - - - ~ 2 Lease number appropriate_____________ Yes- ___________--__- 3 Uniquewell_nameandnumber_-______________________________ _____ Yes_ .__-,--._--_-____-__. ~ 4 Well located in.a-defined-pool No_ - This well is classed. as-exploratory because it will evaluate_the Beluga and Upper Tyonek interval for gas. - - - - - j 5 Well located proper distance from drilling unh_boundary- - - Yes - _ - There are 3 deeperTyonek interval p[oduce[s within 200' of_the su_rface_location_and this_well wilLbedrilled- - 6 Well located proper distance-fro_m other wells_ - _ _ _ _ _ _ No_ _ _ _ _ _ _ - as_a twin to the GO No. 1 well. A_spacing_excepiion_will berequired prior to-approval, draft order atfached, _ _ . _ - 7 Sufficient acreage available in_drilling unit_ Yes - _ _ - - -RPC 8 If deviated, is-wellboreplat_included______________________________ _____Yes- -_________-___---_ 9 Operator only affected party____--------------------------- -----Yes- ---------------,- - - 10 Operatorhas-appropriate_bondinforce..------------------------- _-.--Yes- --------------------------------------------------------____-- 11 Permit_canbeissuedwithoutconservaiionorder__---- ---------___._ -_-_No_- -__----__-_____-____-__-_-____--__-.----_-._----_-_ ---------------------- Appr Date 12 Permit_can be issued without administraiiv_e-approval _ - - Yes - _ - - - - - - - - - - - - - - - -- RPC 11!22!2005 13 Can permit be approved before 15-day wait No 14 Well located within area and strata authorized by Injection Order# (ps~t1O# in_comments)_(For_ NA- - - - - - - - - - - - - - - 15 All wells-within1/4_milearea_ofreyiewjdentified(Forservicewellgnly),______-- __--_ NA__ __________________________________________________________________________ 16 Pre-produced injector: duration of pre production Less than_ 3 months-(For service well only) NA- - - - - - - _ - - - . ------------------------------------------------- 17 ACMP-Finding of Consistency_h_asbeenissued-forthisproject- ------------ --__ NA__ ___________ _---------._-.--_-__-_- -____ --------------------------------- Engineering 18 Conductorstring_provided__-_-..--.-___---__ Yes_ _____13-318"-@121'___________________________ 19 Surface casing-protects all known USDWs - - - -Yes - - 20 CMT_v_ol adequate-to circulate-on conductor_& surf_csg - _ - - - - - - - Yes _ - - - - . -Adequate excess. ------------------------------------------------- 21 CMT_v_ol.adequate_totie-in long string tosu_rfcsg---.-..--_------------ -----Yes_ .-_-______________-___ ___---_--_-__--_-_-_-______________ -____ - --_- 22 CMT_willcoverallknown-productiyehorizgn_s________ ________________ _____Yes_ ____.---.--.--_---..-- 23 Casing designs adequate for C, T 6 &-permafrost_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ ___ _ _Yes _ _ _ _ _ _ _ _ _ _ _ _ - - - 24 Adequate tankage_o_r re_serye pit - . _ _ _ _ _ _ _ _ - _ _ - _ _ _ _ Yes _ - _ - . _ Glacier-Rig 1. - - _ _ - - - - - - 25 If a_re-drill, has a 10x403 for abandonment been approved . - - - . - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ _ - - _ _ -New well, _ _ _ _ _ _ - - _ - - _ _ - - - 26 Adequatewellboreseparation.proposed --- -- -- --- -- ------ -- -Yes- ----------- --- -- --- -- ----------- -- --------- ------ -- 27 If diverterrequired,doesitmeetregu_la_tions_-_______ ____________-. --_-_ No-_ ---__-Variance_requested-ll"vah±e,--__--__---_---_-________________--_----- ----- Appr Date 28 Drillingfluid-programschematic&equiplistadequate-------------------- -----YeS_ --_-_-MaxMW_9,6ppg.___--_-___._--___-_---.--_-_-_--______________-_----__-_-- WGA 11!22!2005 29 BOPEs,dotheymeetregu_lotion--_-_________________________ ___ _Yes_ _____--.- __.__--_-.--- 30 BOPE_pressratingappropriate;iestto_(putpsigincomments)_______________ _____Yes_ --__--Test to 2000 psi.-MSP1646 psi,_______-_----,_-__________-__________- 31 Choke_manifoldcomp-IieswlAPI-RP-53(M_ay84)------- -------------- -----Yes_ -__--_--__-___--____ - - -- -- 32 Work will occur without operation shutdown_------------------------ -----Yes_ --__--_--__-___---___-,________ - - 33 Is presence of H2S gas probable - - N0 None in area. - - - - - - 34 Mechanical_condition of wells within AOR yer~ed (Forservice well only) NA- _ - _ _ - . - - - Geology 35 Permit_can be issued w!o hydrogen_sulfide measures - - - - - - - - - Yes - _ _ - - _ As described above this_is an_ in-field extension or d_evelocat. There is abundant adjacent - 36 Data-presented on potential overpressure zones- - - - - NA_ well_control thathas demonstrated- near normal pore pressures_and a Appr Date 37 Seismic analysis of shallow gas_zones_ _ - - - - - _ NA_ - - _ _ - - - Iackof H2S-RPC_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . RPC 11/2212005 38 Seabed condition survey_(if off_-shore) . _ _ - - _ - - _ - NA- - 39 -Contact name/phone for_weekly progress_reports [exploratory only]- - - . - - - _ _ - _ _ _ Yes _ _ _ Willard J, Tank 713-296-3273 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ Geologic Engineering Public Commissioner: Date: Commissioner: Date Commi Date ~/~~~. /~ z3-as ~ /- Z 3-~ a