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Home My WebLink About206-164T1IE STATE o1ALASKA GOVERNOR MICHAEL J. DUNLEA Y August 23, 2019 President FEX Limited Partnership 888 3rd Street SW, Suite 3400 Calgary, AB T2P 5C5 Dear Sir or Madam: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aog c c.a lasko. g ov According to AOGCC records, FEX Limited Partnership has four permitted onshore wellheads that have been properly plugged and abandoned, but the well locations have not been cleared in accordance with 20 AAC 25.170 (see enclosed list). Please arrange clearance inspections by submitting an AOGCC Test Witness Notification form before December 1, 2019. This form is available online at the AOGCC website: http://doa.alaska. ov/ogc/forms/TestWitnessNotifhtml If you have any questions, please contact Ms. Jody Colombie at 907-793-1221 or iodv.colombiena,alaska.gov or Mr. Dave Roby at 907-793-1232 or dave.robv(i ,alaska.gov . Sincerely, Daniel T. Seamount, Jr.2issioner . Chmielowski Commissioner Enclosure: List of Permitted Wellheads without Location Clearance Inspections FEX Limited Partnership *EXPLORATORY ,2051800 50-279-20014-00-00 -- -- - *EXPLORATORY 20700900— - 'S0-279-20019-0-0-00 *EXPLORATORY 2061650 50-279-20018-00-00 *EXPLORATORY 12061640 50-279-20017-00-00 AKLAQ_2 2006-04-10 P&A IAKLAQ 6 2007-04-23 I P&A AKLAQYAAQ 1 2007-04-18 P&A 'AMAGUQ2 2007-03-30 iP&A Alaska Oil and Gas Conservation CommisNan 2011-04-06 '.Loc Ready For inspect — ;2011-03-25 iLoc Ready For Inspect 2011-03-13_ Loc Ready For Inspect 12007-03-30 Loc Ready For Inspect Location Clearance 7/26/2019 Page 1 oft ~ ~ DATA SUBMITTAL COMPLIANCE REPORT 4/23/2009 Permit to Drill 2061640 Well Name/No. AMAGUQ 2 Operator FEX LIMITED PARTNERSHIP API No. 50-279-20017-00-00 MD 8750 TVD 8750 Completion Date 3/30/2007 Completion Status P&A Current Status P8~A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: Data to large for this data field see 10-407 (data 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 Scale Media No Start Stop CH Received Comments og 15087 Sample ~ 2 Col 2 8436 8710 Open 5/3/2007 Rotary Sidewall Coring Tool, GR, Caliper 19-Mar- 2007 w/Graphics LAS and META og 15087 Sample 2 Col 6897 7390 Open 5/3/2007 Rotary Sidewall Coring Tool, GR 9-Mar-2007 wlGraphics LAS and META '. ED C Las 15087 Density 2000 8728 Open 5/3/2007 og 15087 See Notes 2 Col 7150 8744 Open 5/3/2007 XMAC, MutliArray Accoustilog, GR, Caliper I 18-Mar-2007 w/Graphics ~~ LAS and META og 15087 See Notes 2 Col 7150 8744 Open 5/3/2007 Digital Specrta Log 18-Mar- I, 2007 w/Graphics LAS and META og 15087 Gamma Ray 5 Col 7100 8725 Open 5/3/2007 Slowness Analysis w/GR 27-Mar-2007 w/Graphics LAS and META ~ /Log 15087 See Notes 5 Col 8530 8725 Open 5/3/2007 Anisotropy Analysis 27- ', Mar-2007 w/Graphics LAS ', and META g 15087 Neutron 2 Col 7150 8744 Open 5/3/2007 Comp Z-Denisilog, Comp r~ Neu Log, GR 18-Mar-2007 ', w/Graphics LAS and META • DATA SUBMITTAL COMPLIANCE REPORT 4/23/2009 Permit to Drill 2061640 Well Name/No. AMAGUQ 2 Operator FEX LIMITED PARTNERSHIP API No. 50-279-20017-00-00 MD 8750 TVD 8750 Completion Date 3/30/2007 Completion Status P&A Current Status P&A UIC N og 15088 Induction/Resistivity 2 Col 470 8751 Open 5/3/2007 DGR, EWR, SLD, ALD, CTN, BAT, ROP 17-Mar- ' 2007 w/Graphics EMF, II PDF, CGM it pt 15089 Report: Final Well R 0 0 Open 5/3/2007 Final Well Report, General, ~~~ ~, Daily Reps and Ops, ', Morning Reps, Bit Rec, Mud Reps, Show Reps, Survey Reps, Days vrs Depth, w/Data Graphics in '~ PDS, EMF and LAS I'~rfD C Las 15089 Report: Final Well R 83 8751 Open 5/3/2007 EOW report data '~ og 15089 Mud Log 2 Col 83 8751 Open 5/3/2007 Combo Surface Data and ~~ Measured Depth Mud Log 17-Mar-2007 w/Graphics ~!IJ~ C Pdf 15094 Report: Final Well R 0 8750 Open 5/3/2007 EOW Dir Drilling and ~' ~~~ MWD/LWD Services apt 15150 See Notes 0 0 Open 5!22/2007 Daily Drilling Reports 2006- i 2007 w/Graphics PDF ~, ';`Rpt 15397 See Notes 0 0 Open 9/6/2007 Petrographic Rpt on Torok I! & Kuparuk Thin Sections 8 I, Side Wall Core Analysis ', w/Graphics in PDF ~' ', fzpt 15396 See Notes 0 0 Open 9/6/2007 Rotary Side Wall Core Analysis with Samples i w/Graphics in XLS ~ ', Rpt See Notes 0 0 1/15/2008 Sample Geochemistry, I!I Cuttings and Rotary Sidewall Core Samples. C 15843 See Notes 0 0 1/15/2008 Sample Geochemistry, Cuttings and Rotary Sidewall Core Samples. Graphics in XLS, PPT, and Word • DATA SUBMITTAL COMPLIANCE REPORT 4/23/2009 Permit to Drill 2061640 Well Name/No. AMAGUQ 2 Operator FEX LIMITED PARTNERSHIP API No. 50-279-20017-00-00 MD 8750 TVD 8750 Completion Date 3/30/2007 Completion Status P&A Current Status P&A UIC N C Las 15088 Induction/Resistivity 2 470 8751 Open 5/3/2007 DGR, EWR, SLD, ALD, ', CTN, BAT, ROP 17-Mar- 2007 w/Graphics EMF, ', C 15150 Report: Final Well R ~D C 15396 See Notes ~D C 15397 See Notes Well Cores/Samples Information: PDF, CGM !~ 0 0 Open 5/22/2007 Daily Drilling Reports 2006- I, 2007 w/Graphics PDF 0 0 Open 9/6/2007 Rotary Side Wall Core Analysis with Samples w/Graphics in XLS 0 0 Open 9/6/2007 Petrographic Rpt on Torok 8~ Kuparuk Thin Sections ik 'i Side Wall Core Analysis w/Graphics in PDF Sample Interval Set Name Start Stop Sent Received Number Comments Cuttings 20 8750 1169,/Cores and/or Samples are required to be submitted. This record automatically created ~, from Permit to Drill Module on: 12/22/2006. ADDITIONAL INFORMATION Well Cored? ~ N S Vt ~ cs Chips Received? -~Mh Analysis Y~N Received? Daily History Received? /~ Formation Tops ~!- / N Comments: Compliance Reviewed By: Date: • Transmittal To: State of Alaska January 9, 2008 Oil & Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 Attn: Steve Davies From: FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 RE: Geochemical Sample Analysis 1. Aklaqyaaq #1. Report and D ~ ~ _~~ 5 -TOC/Rock Evaluation Pyro ysis `~0 -Vitrinite Reflectivity/Ro .~ r~ l`~ ~ ~ ~ ~ ~ -Organic Petrology ~' -GC and GC-MS -~ ~ ~;°sl ~~ ~~~~4 ~g~~~~~i 2. Amaguq #2. Report an CD - TOC/Rock Evaluation Pyrolysis ~ScS~ -Vitrinite Reflectivity/Ro -Dispersed Organic Matter TA, Kerogen Type and Total Compositional Analysis Delivered by Received by Date C a O Date l ~ ~S ' D~ Please sign both copies and return one copy to FEX. Please retain one copy for your files. Thank you ~ 1. c~-~-//USX (°r7*~ ~s ~~ i Transmittal To: State of Alaska Oil & Gas Conservation Commission 333 W. 7~' Ave., Suite 100 Anchorage, AK 99501 Attn: Steve Davies From: FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 RE: Amaguq #2 C_! September 6, 2007 1. 1 print copy and CD Corelab Rotary Sidewall Cores -Core Analysis 2. 1 print copy and CD Talisman Sedimentological and Petrographic Analysis Report of Rotary Sidewall Cores Delivered by Received by Date `1 G 2~~ Date ~ ~ ` y w~'~~~/ ~~~39~ !~9 ~ S~,p 0 6 2007 Alaska Qil & Gas Cons. Commission Anchorage • I~E~EIVED F E X Date: May 30, 2007 To: Steve Davies Petroleum Geologist AOGCC 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 From: Tim Flynn Operations Drilling Engineer, FEX L.P. 3900 C Street Anchorage, AK 99503 MAY 3 0 20p7 Alaska Oil & Gas Cans. Commission Anchorage Re: Supplemental information for Amaguq #2 completion report Mr. Davies Enclosed are documents that support the abandonment of well Amaguq #2 drilled by FEX, L.P. in the NPRA. The cap plate was welded to the 9 5/8" casing stump on March 30~' 2007. The pad was scraped and all further activities were ceased by FEX at this location. If you have any further questions, I can be contacted by phone at 907 317 5504. Thank you Tim Flynn Operations Drilling Engineer ~~~/ ,_.- _ -- -- - - _ . Page 1!2 FEX L.P. - DDR Detail I Well Name: AMAGUQ #2 Job Type: Drilling -Original Dafe: 3/30/2007, Report: 63.0, DFS: 43.$1 Job Spud Date Rig Release Date Groun d Elevation (ftl Orig KB Elev (ft) KB-Ground Distance (ft) AFE~NO. Total AFE Amount Total AFE+gup 2i1520Q7 04:30 3;2112007 21:00 76.70 95.30 13.60 ~ AF62035 23,556,979.00 23,556,979.00 '' Safes _ ~ ~ ~ ~c,-, ~ r.a ~y~+~y,~"_ `-~ Target Depth (ftK8) Target Formation ' Type Date Comment Daily Cost Total Cum Cost To Date Daily Summary - -`- _ ~-- - ~ :. -, ~` - -192,787.75 21,461,243.14 'Daily Mud Cost Mud Cum To Date Weather Lease / Roatl Contlitions ~ Wellbore Condition Over (+) / Untler (-)AFE (+/-) Var Days - Good Good 407,940.00 Operations ~ 06:00 Depth Start (ftKB) Depth End (ftKB) Clean pad 8,750.0 8,750.0 Operations This Report Period , Depth Progress (ft) Drilling Hours (hrs) Weld cap plate on Amaguq #2 wellhead. Fill in cellar and place dirt mound over casing stump. _0.00 _ _ ,~ ~ ..Operations Next Repoli Period , t ,r ~ ! ~ ' Daily Foreman Contact ' _ , - --. - .. _. ...,, _~_ n s - - Job Contact CeN Pho 0 - - --- -~ - - - - - .-.-. _ - - _ I -- 'Time Log .:.; - -~ -- _ ; . ~ _ -. ` _ .. - _ - Start Dur tips Cat Scheduletl '~ E I I ~ r Time hrs) Typo Phase i Major Op .. ' ~ Depth End ~~-~~ ~'^ ~ ' ~ f ~Rigs:_Doyon, Arctic-Wolf Operation Trouble (ftKB) i Comment ` -~ Rig Supervisor - - - - - BOh Upton, Rig Manager -` --- Mud C hecks: ' - Mud Pum s: <No ?>t,Gardner-Denve... " ~ Density (Ib/gal) pH CEG forCutbngs Pf (mUmL) l° Water (h) Mud Lost(Hofe) (bbQ Calcium (mglL) No. Pwr (hp) Rod Diameter (in) 900.0 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent Oil (°~) Mud Lost (Sut'f) (bbl) Liner Size (in) Stroke (in) Vol/Stk OR (bblis... .: 9.02 PV Over (cp) Gel (tOs) (Ibf/t00f... Sand (%) MBT (Ib/bbl) Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) I Pump Checks YP Over (IbH10... Gel (tOm) (Ibf/100...'Solids (°h) LGS (°~) Polymer (ppm) LCM Mud Vol (Res) (bbl) ~ r Strokes l ~ Pres {psi)- Slow Spd (spm) Eff (/) ~ _._.. - -E Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Fiit (mU30... Alkalin (mL/mL) Whole Mud Add NO (bbl) __._ ~_. ,r , Mud Pumps: 1,Gardner-Denver, PZ_9 , Max Back Gas (%) Avg Back Gas (%) Max Conn Gas (%) Avg Conn Gas (%) Max Trip Gas (°~) Avg Trip Gas (%) No. Pwr (hp) Rod Diameter (In) 1 900.0 Silicate (%) Electric Stab (V) Comment Liner Size (in) SVOke (in) Vol/Stk OR (bbl/s... ' 5 1 /2 9.02 c D!'in~Shaker Data ''''' }; _ ~, Y ~':~ Pump Checks Description HG Dryer _ _ Make Derrick , Model Derrick . __ ~ Strokes L Pres (psi) Slow Spd (spmj Eff (%) Shaker Screens No -Deck No: -screen No. - -[ -- scr §z x (In) _ T - -- _ si:r Sz y (in) _ - - Mud-Pum s: 2, Gardner-Denver, PZ-9 i 1 1 1 200.000 No. Pwr (hp) Rod Diameter pn) • ~ 1 2 200.000 2 900.0 1 3 200,000 Liner Size (in) Stroke (in) Vol/Stk OR (bbl/s... 1 4 200.000 51/2 9.02 Shaker Checks Pum Checks - - - -.. ---- Dens OF (Ib/gal) -- --- ---- ---- - - Hrs (hrs) Strokes -- Pres (~1~ j Slow Spd ~ (spm) ~ Eff (%) Description Make Model No _ _ HG Dryer Derrick Derrick Shakers: <Description?> Shaker Screens Make Model . . ; Deek No. ' Screen No . i ---- Ser SzX (in} - -- Scr Sz Y (in) ---- i < i k nS r SCe ' L 1 2 200.000 ee screen I } o net 1 3 200.000 Scr Sz X in) Scr Sz Y (in) '< 1 4 200.0001 Shaker Checks Shaker Checks - -- - Dens OF (Ib/gal) Dens OF (Ib/gal) Hrs (hrs) Dens OF (Ib/gai) ~ Hrs (hrs) Description Make Model ;.: _ -- - - -- -- -- - . - ' HG Dryer Derrick Derrick make Model Shaker Screens -- - - T Centrifu elC clone Checks Deck No. - i Screen No. -- - Scr Sz X (ih) --- ScfSz Y_ sin) - Density Overflow Qb/gal) OverFlOw Rate (gpm) 1 1 200.000 1 2 200'000 Dens OF (Ib/gal) UnderFlow Rate (gpm) 1 3 ~ 200.000 1 41 200.000 Hours (hrs) Oil Under FI (%) Dens FD (Ib/gal) Shaker Checks _..--- - -- r DensUF Ib/ of __ ( g 1 ___ I Hrs hrs __ ( ) Mtid Additive Amounts ~ I p y - scri lion Cons... Dail Cost Vendor Drill Strings: - --- - - - - _ - - _ --- - -~ - - ~ -~-- ~ ~ ~ ~ ~ f ~ ~ Bit Run Make Bit Inventory Bit Type Item Cost ~ ( . Last Casing Check ~ IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles (/32") IADC Codes Data - Type -- - - -- - -- Report Printed: 5/30(2007 FEX LP. - Cement Report ~ Page vT '; Well Name:` AMAGUQ #2 ~ _, ' Original KB Elevation (ft) Ground Elevation (ft) CF Elev (K) KB-Ground Distance (fq KB-CF (k) Original Spud Date Original Rlg Release Date 95.30 76J0 73.30 12.60 22.00 2;1512007 4:30:00 3/21/2007 9:00:00 Cerrient Details - , _ _ _ ' ~; `"` '` -- - -- - - -- =~ -- -'emu - ~emenang stare uaca cemennng tna uate tivmg wenoore name 3/20/2007 01:30 3/20/2007 02:30 ORIGINAL HOLE Comment Plug Bottom __-__ Cement Stages: <Stg No.?>, 8,258.0-8,750.OftKB - s De cription Objective/Purpose Cmnt Top inter (hK6) Cmnt Btm Inter (ftKB) Cement Plug Packing Device Capped with Cement -Abandon the We 8,258.0 8,750.0 Top Plug? Bottom Plug? O (start) (bbl/min) Q (end) (bbl/min) ll (avg) (bbl/min) P (final) (psi) P (bump) (psi) Cmnt Rtrn (bbl) 2 3 3 1,000.0 Pipe Reciprocated? Reciprocation Stroke Length (ft) Pipe Rotated? Pipe RPM (rpm) 0 Depth Tagged (ftKB) Tag Method Depth Plug Drilled Out To (ftKB) Drill Out Diameter (in) Comment Set retainer @ 8358' md. Pump 7.7 bbls below, close retainer, pumped 4 bbls Type G above Cement Fluids_ :_ Ply _ _ Fluid Type Fluid Description Cement Amount (sacks) Cement Class Volume Pumped (bbl) Yield (ft /sack) Plug .2% CFR-3, .65% Halide 57 Class G 11.7 1.15 413 and .25% HR-S Mix H2O Ratio (gal/sack) Free Water (%) Density (Ib/gal) Plastic Viscosity (cp) Thickening Time (hrs) 1st Compressive Strength (psi) 15.80 58.0 4.00 V (bbl) Excess (%) Estimated Top (ftKB) Estimated Bottom (ftKB) Comment 11.7 25.0 8,258.0 8,750.0 Sting back into Retainer Mix & Pump Cement below Retainer as Programed and approved by AOGCC/ Pull out of Stinger & Cement 100' Above Retainer as per Prog./ Pull out of Cement Rack back 5 stds Comment Sting back into Retainer Mix & Pump Cement below Retainer as Programed and approved by AOGCC/ Pull out of Stinger & Cement 100' Above Retainer as per Prog./ Pull out of Cement Rack back 5 stds Cement Fluid Additives __ _ ~ Add j Type Amount ~ Amt Unit ~ Cone _~ _Conc Unlt_ ~ i kCelnent Fluids: Phic~ _ ~ _ ' !Fluid Type Fluid Description Cement Amount (sacks) Dement Glass Volume Pumped (bbl) Yield (ft /sack) ' Plug Surface plug 69 Class C 11.8 0.95 Mix H2O Ratio (gal/sack) Free Water (%) Density (Ib/gal) Plastic Viscosity (cp) Thickening Time (hrs) 1st Compressive Strength (psi) 15.60 58.0 2.75 V (bbl) Excess (%) Estimated Top (ftKB) Estimated Bottom (ftKB) Comment 11.8 25.0 0.0 325.0 Push Wiper Plug to 374' with 6 Stds of pipe / Cement C type Permafrost Cement from 374' to Surface Cement RETURNS At SURFACE Comment Push Wiper Plug to 374' with 6 Stds of pipe / Cement C type Permafrost Cement from 374' to Surface Cement RETURNS At SURFACE Cement Fluid Additives F_ Add Type Amount _ Amt Unit L Conc Conc Unit L - -- - --- --- I - _ I I I -- Report Printed: 5/30/2007 - - - - -T-_.__ -- - - -- _-Page ,1/1 FEX LP~ - :Cement Report Well Name: AMAGUQ #2 - -- - _ _ _ - ~Orlginal KB Elevation (fi) Ground Elevation (kl CF Elev (Ft) KB-Ground Distance (ft) KB•CF (ft) ~ Original Spud Date Original Rig Release Date 95.30 76.70 73.30 18.60 22.00 2i15i2007 4:30:00 3/212007 9:00:00 ,Cement Dtaails _ _ _ _ ` _ _ _ _ _ ~ _ _ _ __ _ _ __ __ _ _ _ _ Cementing Start Date ~ y Cementing Entl Date ~ ~ ~ SVing Wellbore Name 3/24/2007 16:45 ; 3/24!2007 18:15 ORIGINAL HOLE Comment Plug Back Backside _ ____T __ _ _ - __ I Cement Stages: <Stg No_?>, 0.0-4,500.OftKB _ _ - - - - --- - Description Ob. t /P rpose G m Top Inter (ftKB) Cmnt Btm Inter (ftKB) lec rve u m Cement Plug Cement Squeeze -Abandon Zone 0.0 4,500.0 lop Plug? Bottom Plug? Q (start) (bbl/min) q (end) (bbl/min) ~ Q (avg) (bbllmin) P (final) (psi) P (bump) (psi) Cmnt Rtrn (bbl) No No 1 3 2 300.0 500.0 Pipe Reciprocated? Reciprocation Stroke Langth (tt) Pipe Rotated? Pipe RPM (rpm) No No 0 Depth Tagged (ftKB) Tag Method Depth Plug Drilled Out To (ttK6) Drill Out Diameter (In) Comment Pump Fresh H2O to establish Feed Rate to Formation @ 3 bbl per min. Pumped 62 bbis of cement at 3 bbis per minute to cover the entire annulus + 25%. Flushed lines with 1.5 bbis of water and closed valve. Pressure behind valve was 300psi. - -- -__ Cement Fluids: Plu _ -_~. - -- Fluid Type Fluid Description Cement Amount (sacks) Cement Class Volume Pumped (bbl) Yield (fN/sack) Plug Type L Permafrost 62 Lightweigh 62.0 4.15 cement Mix H2O Ratio (gal/sack) Free Water (%) Density (Ib/gal) Plastic Viscosity (cp) Thickening Time (hrs) 7st Compressive Strength (psi) 10.70 13.0 5.00 V (bbl) Excess (%) Estimated Top (ftKB) Estimated Bottom (ftKB) Comment 62.0 25.0 0.0 5,000.0 established injection rate ' at 1 bbl/ min, increased to 3 bbl's/ min. wmmenr established injection rate at 1 bbl/ min, increased to 3 bbl's/ min. Cement Fluid Additives - - -- - -- - Add ~ Type Amount AmtUnit ~ Conc C°nc Unit i -- - --- i Report Printed: 5/30/2007. :.: :~ , ; _~,~ ~~ ___ _ .: v~~ ~,~ . ~-~%:t .. - - - , . __ z ~~ 4 _ `~ _ ~ .i_` _ -~_ - ... ~~. t.. _ ~ _ a . . ~!~. ~- _ ~ Welded cap on Amaguq #2 on April 30. 2007 y~~~~ RECEIVED STATE OF ALASKA APR 2 ~ ZOOT ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AI'~Dk~~' ~'as Cons_ Cammissian 1a. Well Status: Oil Gas Plugged Abandoned ~ Suspended WAG zoaac2s.~ae 2onac2a~~o GINJ^ WINJ^ WDSPL^ No. ofCompleUons Other 1b. Weil Class: Development ^ Exploratory0 Service ^ SLratigraphicTest[] 2. Operator Name: FEX L.P, 5. bate mp., Susp., or / and • March 30, 2007 12. Permit to drill Number. 206-184 ~ 3. Address: 3601 C Street, Suite 370 Anchorage AK 99503 6. Date Spudded: .~Gb~ }~ 2007 13. API Number: 50-279-20017-00 4a. Location of Well {Governmental Section): Surface: 1875'FWL,2522' FSL. Sec. 18, T12N, R15W. UM 7. Date TD Reached: March 17, 2007 ~ 14. Weil Name and Number: Amaguq #2 Top of Productive Horizon: 1875'FWL,2522' FSL. Sec. 18, T12N, R15W. UM 8. KB Elevation (ft): 95.3 15. FieldiPool(s): Total Depth: 1875'FWL,2522' FSL. Sec. 18, T12N, R15W. UM 9. Plug Back Depth(MD+TVD): NA Wildcat 4b. Locatfon of Well (State Base Plane Coordinates}: Surface: x- 278458.51 ` y- 5997095.6 '" Zone- 5 10. Total Depth (MD +TVD}: 8750 16. Property Designation: AA-085484 TPI: x- 279459.51 y- 5997095.6 Zone- 5 Total Depth: x- 279459.51 y- 5997095.6 Zone- 5 11. Depth Where SSSV Set: NIA 17. Land Use Permit: IJ1S 25297 18. Directional Survey: Yes ~ No ^ 19. Water Depth, if Offshore: N1A feet MSL 20. Thickness of Permafrost: 1090 21. Logs Run: MWD Gamma,Resistlvity, Neutron,Density,Sonicend Wiretine Resistivity imaging and rotary sidewall cares 22. CASING, LINER RND CEMENTING R ECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT ~. TOP BOTTOM TOP BOTTOM PULLED 18" 65# H-40 0 80 0 80 12.25" 157 bbis Leadl4l bbis taf! NA 9-5/8" 40# L-80 0 2115 0 2113 12.25" 0-2115 Cement to surface NA 7" 2ti# L-80 0 8423 0 8421 8.5" 4500-8750 Multi-stage NA 23. Perforations open to Produc tion (MO +TVD of lop and Bottom 24. TU81NG RECORD Interval, Slze and Number; If none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) N1A N/A N1A N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 8355-8508 (7" csg bore) 5.55 bbis class G cement below retainer 8255-8355 (7" csg bore) 3.82 bbis class G cement above retainer 0-4500 (9 518 annulus) 61.8 bbis Type L 0-325 (7" bore) 11.7 bbis Type L 26. PRODUCTION TEST Date First Production: NIA Method of Operatlon (Flowing, gas lift, etc.): N/A Date of Test: Hours Tested: Production for Test Period -- Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: F1owTubing Press. Casing Press: Calculated 24-Hour Rate r-- Oi[-Bbl: Gas-MCF: Water-ebl: Oil Gravity-API (corn): 27. CORE DATA Brief description of Iithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; If none, state "none". ~ a~~, , , No core was taken on this well t % ~~ ~+av .~ ~ zoos ~ ~~ lava ~ ~ tidw `~~ ~ .,.~.: ~... Form 10-407 Revised 12/2003 CONTINUED ON REVERSE ~ ~ S 3~' b? oR~~~NA~ r~. ~ ~~.o~ ~ ~ J • 28. GEOLOGIC MARKERS 29. FORMATION TESTS NAME MD TW Include and briefly summarize test results. List intervals tested, and attach Base Permafrost 1100 1100 detailed supporting data as necessary. [f no tests were conducted, state Nanushuk group 1250 1250 "None". Nanushuk topset sst.fi 2528 252$ Rotary sidewali cores taken in the Kuparuk and Alpine Sandstone Torok 2962 2962 Torok sand 1t 4315 4315 HRZ 7186 7186 LCU (Lower Cret. Unconformity) 7364 7364 Kuparuk Sandstone Mbr.~ 7365 7365 "Alpine" Sandstone" 8454 8454 BCU (Base Cret.Unconformity) 8509 8509 TD Jurassic Kingak Fm. 8610 8610 30. List of Attachments: Directional surve 31. I hereby certify that the foregoing is true and correck to the bast of my knowledge. Contact: Printed Name: Paul Mazzolfni Title: Operations Manager ' +t Signature: Phone: 907 771 1923 Date: 23-Apr-07 INSTRUCTIONS General: This form is designed for submitting a complete and cx2rrect well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10.404 well sundry report when the downhole well design is changed. item 1a: ClassiUcation of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, 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 Producir~ 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 farm and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 30.029-20123-00-00). Item 20: True vortical 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 produdng 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 lnformatbn, if none, state'None". Form 10-407 Revised 1212003 ~t'at~SCl11$~a~ To: State of Alaska May 22, 2007 Oil & Gas Conservation Commission 333 W. 7`" Ave., Suite 100 Anchorage, AK 99501 Attn: Steve Davies From: FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 RE: Amaguq #2 1. 1 print copy and 1 CD of Amaguq #2 Daily Drilling Reports Delivered by Received by Date 2-~ ~~~' Date -~ ~ ~- U ~~ - i~~l ~` ~ s~5~ ~ ~ Transmittal To: State of Alaska May 2, 2007 Oil & Gas Conservation Commission 333 W. T1' Ave., Suite 100 Anchorage, AK 99501 Attn: Steve Davies I~.ECEIVE From: FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 RE: Amaguq #2 MAY Q ~ 7~~?7 Alaska 0il & Gas Cans. Ca~rtmissior~ Anchorage 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 1 print copy of Directional Survey (included in end of well report) 1 print copy of DGR Dual Gamma Ray 1 print copy of EWR -Phase 4 Resistivity 1 print copy of SLD/ALD Density 1 print copy of CTN Compensated Thermal Neutron 1 print copy of BAT Bi-Modal Acoustic 1 print copy of ROP Rate of Penetration 1 CD copy of DGR Dual Gamma Ray, EWR -Phase 4 Resistivity, SLD/ALD Density, CTN Compensated Thermal Neutron, BAT Bi-Modal Acoustic, ROP Rate of Penetration 1 print copy and 1 CD of MWD/LWD End of Well report 1 print copy of XMAC/GR/CALI 1 print copy of Processed XMAC /Slowness 1 print copy of Processed XMAC /Anisotropy 1 print copy of STAR/GR 1 print copy of RCOR/GR 1 print copy of RCOR/GR/CALI 1 print copy of ZDL/CN/GR (Density/Neutron) 1 print copy of DSL (Digital Spectra Log-GR) 1 CD of XMAC/GR/CALI, Processed XMAC /Slowness, Processed XMAC /Anisotropy, STAR/GR, RCOR/GR, RCOR/GR/CALI, ZDL/CN/GR (Density/Neutron), DSL (Digital Spectra Log-GR) 1 print copy and 1 CD of Mud Log & Engineering Log 1 print copy and 1 CD of Mud Loggers End of Well Report I print copy of List of geology markers and depths 1 print c~of all logs run (excl. velocity surveys) ~o `~!~ Delivered by Received by Date ~ ~ O~ Date ~~ ' ~ ~ '~ • t • WELL NAME SURFACE LOCATION BOTTOM HOLE LOCATION API # FEDERAL LEASE NUMBER AOGC PERMIT NUMBER FIELD/REGION OPERATOR WELL DATA SUMMARY Am~q #2 _®_ _ _ _ _~ 2522' _FSL, 1875' FWL, S_ec 18, T12N, R15W, UM Bottom hole~rojection at TD 30.73 ft South and 9.08 f 50-2_79-20017-00 ~~ AA-085_84~______________._______.__ _____________________a___..___. 206-164 --___~.________.~ ____~ N_W NPR-A, Alaska, USA ______._~__~__~_______~ FEX L.P. ----___~___.~_____ SURFACE COORDINATES LAT: 70°23'38.347N LONG: 155°4752.498" W WELL CLASSIFICATION Wildcat _ y~ DRILLING CONTRACTOR Akita-Doyon Arctic Wolf (RTE 18'9") _______ ELEVATIONS GROUND LEVEL RT ELEVATION KELLY BUSHING DRILLING DATES SPUD DATE T.D. DATE RIG RELEASED 76.70 (ft) ______. 18.60 ~~~~_ 95.30 (ft) Februar~l5, 2007 m__ TIME _ ____0_4_30 hrs March 17_,_2_007_ TIME ____ 1930 hrs March 21, 2007_._______ TIME _______._____2100 hrs HOLE SIZE & MUD TYPE SURFACE 12_-1/4" KCL/Clayseal/Poly _______~~_ INTERMEDIATE 8-1/2" KCL/ClayseaUPoly ~ ~ _ MAIN 6-1/8" KCL/Clayseal/Po_ 1~____~ _ _ _________~ CASING DATA CONDUCTOR 2 jts 65 ppf 16" conductor set_at 83 ft _ __ _ _ SURFACE 5_1 joints of 9 5/8" OD, 40_ppf L-80 BT&C casi~ landed at 2116.37 INTERMEDIATE 205 jts 7-in 2~f L-80 BT & C casing run to 8433 ft -shoe set at 8423 ft ______ GEOLOGICAL DATA 30-ft samples from 83 ft to 6890 ft, 10-ft samples from 6890 ft to 8430 ft, 5-foot SAMPLE INTERVAL samples from 8430 ft to 8480 ft, 10-foot samples from 8480 ft to TD at 8750 ft _ ~~~ GAS DETECTION INTERVAL 83 ft to 8750 ft (Sperry-Su_ n gas chromato~raEh) _ ~ ~___~_____~ ROTARY CORES _R_otary coring~pr__opram_cancelled due to time considerations_y__.__W__~_________________. _ _ SIDEWALL CORES - See detail in Logging and SWC_sections (this report) RCOR/GR on 9 March 2007 XMAC/ZDL/CNL/DGR on 18 March 2007 WIRELINE LOGGING RCOR/GR on 18-19 March 2007 DGR/DIR/STAR on 19 March 2007 _ RFT SAMPLES __ _ RFT sampling~ro~ram cancelled due to time considerations~~~®~ ______ VSP STATIONS VSP program cancelled due to time considerations _ ________~____~ ____________. __ _ __.___________._____~~_ ______ DRILL STEM TESTS none WELL STATUS P & A RECEI~~E ~,~~ o ,3 ~r,« Alaska 0i1 & Gas Gons. Culnmission Anchorage • • FORMATION TOPS Amaguq #2 K.B.(ft): 95.30 G.L.(ft): 76.70 PROGNOSIS MWD c~ Samples ''' LWD Logs FO~i?1tfATION MD(f~) SS(ft) TVD(ft) SS(ft) Ti~D(ft) S`S(ft) Base of permafrost 1121.3 -1026.0 1090 -994.7 1090.0 -994.7 Nanushuk group 1271.3 -1176.0 1072 -976.7 1072.0 -976.7 Nanushuk topset sandstone 2549.3 -2454.0 2380 -2284.6 2379.9 -2284.6 Torok 2983.3 -2888.0 2834 -2738.7 2950.0 -2854.7 Torok sand 3 4336.3 -4241.0 4354.0 -4258.7 Torok sand 2 6829.0 -6733.7 Torok sand 1 7180.0 -7084.7 High Resistivity Zone (HRZ) 7207.3 -7112.0 7233 -7137.7 7233.0 -7137.7 Kuparuk Sandstone Member "C" 7385.0 -7289.7 Lower Cretaceous Unconformity (LCU) 7385.3 -7290.0 7406.0 -7310.7 Kuparuk Sandstone Member "A" 7386.3 -7291.0 7385 -7289.7 7406.0 -7310.7 Upper Kingak (Miluveach) 7423.3 -7328.0 7406 -7310.7 7619.0 -7523.7 Alpine Sandstone 8475.3 -8380.0 8424 -8328.2 8424.0 -8328.7 Base Cretaceous Unconformity (BCU) 8530.3 -8435.0 8490 -8394.7 8490.0 -8394.7 TD Jurassic Kingak Formation 8631.3 -8536.0 8750 -8654.7 8750.0 -8654.7 RECEIVED MAY 4 3 7t~07 Alaska Oil & Gas Cons. Commission Anchorage • • WELLSITE LOGGING REPORT -Event 1 Amaguq #2 2522' FSL,1875' FWL, Sec 18, T12N, R15W, UM NOL~ ~,~f;;;7'A Hole Size: 8 1/2 in TD Driller: 7400.00 feet Strap: -feet TD Logger: 7398.00 feet Casing Driller: 2116 feet Casing Logger: feet Hole Condition: Fair MUD D~f Ttl Type: 6% KCL/ClayseaUPoly Density: 10.7 ppg Viscosity: 51 sec W.L.: 8.0 pH: 8.9 LOGGI~'G COMPANI Logging Co.: Baker Atlas Engineer: Pinedo/Spencer Truck No.: Start Date: 8-Mar-07 Start Time: 4:30 PM End Date: 9-Mar-07 End Time: 4:30 PM Run Number Logged Interval From To Hours Los Remarks Descent 1 7390 7220 6.0 RCOR-GR Tool failure Descent 2 6847 6845 6.0 RCOR-GR Broken bit Descent 3 7388.2 6841 6.0 RCOR-GR Bit sheared off Total Hours: 18 LOGGING OPERATIO,'VS SUMMARY Date From To Description of Operation 8-Mar-07 5:15 7:00 Call out to location. 8-Mar-07 7:00 16:30 Arrive on location, set u equi ment. 8-Mar-07 16:30 18:00 Ri up. 8-Mar-07 18:00 0:00 Run RCOR-GR on Descent #1 9-Mar-07 0:00 5:00 Run RCOR-GR on Descent #2 9-Mar-07 5:00 11:00 Run RCOR-GR on Descent #3 9-Mar-07 11:00 14:00 Work tool free. 9-Mar-07 14:00 16:30 Rig out tools and equipment. ;nt #1: #8 bit type, cut 2 cores, no ROP on subsequent attempts, pull tool, hydraulic transmission failure ;nt #2 #11 bit type, cut 2 cores, no ROP on subsequent attempts, pull tool, broken bit at 6841'. ;nt #3: #8 bit type, cut 16 cores, core bit stuck at 6841', work tool, shear bit off, tool stuck at 6838', pulled cores requested/attempted - 32 cores recovered - 15 DECEIVE Alaska Oil & Gas Cons. Commission Anchorage ~ ~ WELLSITE LOGGING REPORT -Event 2 Amaguq #2 2522' FSL,1875' FWL, Sec 18, T12N, R15W, UM ;; HOLB;t7,4TA ,;> MUU UA1;/1 Y.'OGG/ti'G (i~hIP.4N'1', Hole Size: 6 1 /8 in TD Driller: 8750 feet Strap: na feet TD Logger: 8744 feet Casing Driller: 8418 feet Casing Logger: 8423 feet Hole Condition: Fair -low clearance Type: 6% KCUClaysea]/Po1y Density: 9.4 ppg Viscosity: 76 sec W.L.: 5.8 pH: 9.5 Logging Co.: Baker Atlas Engineer: Pinedo/Spencer Truck No.: 6698 Start Date: 18-Maz-07 Start Time: 10:00 AM End Date: 19-Maz-07 End Time: 11:00 AM >> LOGG/NG SE~C7,~'N~ L{, Run Number Logged Interval From To Hours Los Remarks Run # 1 8744 7150 7.5 XMAC/DIR/ZDL/CNL/DGR 1 hr tool failure Run #2 8710 8436.1 12.5 RCOR-GR 1 hr tool failure Run #3 8728 7150 5.0 DGR/DIR/STAR no lost time Total Hours: 25.0 LOGG[NG OPERA~ONS SUhfMAR l ~ ~~ :.. Date From To Descri lion of O eration 16-Maz-07 Final Alert to be on site on 17 March 2007 17-Mar-07 12:00 Lo ers on location - settin u e ui ment still drillin near TD 18-Mar-07 10:00 11:35 Ri u for Run # 1 18-Mar-07 11:35 12:50 Run in -transmitter failure - ull out to chap e & run back in 18-Mar-07 12:50 13:55 Run in to shoe 18-Mar-07 13:55 15:30 Lo in at er Glenn Gra 's instructions from bottom to 7150 ft 18-Mar-07 15:30 17:30 Pull out and ri down 18-Maz-07 17:30 20:15 Ri u RCORE and run in to shoe 18-Mar-07 20:15 21:15 Pull tool for electronics failure -run back in to shoe 18-19 March 07 21:15 4:15 Out of shoe -Cut cores as er Glenn Gra 's instructions 19-Mar-07 4:15 6:00 Pull tool to surface and ri down - sam les in tool house 19-Mar-07 6:00 8:50 Ri u tools and run in to bottom 19-Maz-07 8:50 9:13 Lo u from bottom into casin 19-Mar-07 9:13 9:35 Run back in to relo shoe area and back into casin 19-Mar-07 9:35 10:15 Pull tools to surface 19-Mar-07 10:15 11:00 Ri down tools All logging operations supervised by Glenn W. Gray, P. Eng -Talisman Energy Petrophycical Operations Run # 1: XMAC/ZDL/CNL/DGR (from bottom to top of string) Run #2: RCORE/GR (19 cores attempted -full or partial recovery on all 19 attempts) Run #3: DGR/DIR/STAR Very good professional crew. Two hours of lost rig time due to two tool failures. The logging was in a shaly section of the hole with minimal clearance between the tools and the wellbore requiring considerable skill from the operators to prevent sticking of the logging tools and possible fishing job. The presence of a professional petrophysicist on the location during the operations was critical to the quality of the logs and to the success of the core recovery. Selection of appropriate positions on the wellbore to take cores with minimal risk or sticking the tool was the responsibility of Glenn Gray. The wellsite geologist took charge of the cores only after they were recovered. Transmittal To: State of Alaska Apri124, 2007 Oil & Gas Conservation Commission 333 W. 7~' Ave., Suite 100 Anchorage, AK 99501 Attn: Steve Davies RE~EIV' ~p~ 2 ~ 20~~1 From: FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 RE: Amaguq # 2 Alaska Oil & bas Cons. Cntnmssian knchorape 1. 1 hard copy of AOGCC Well Completion Report and Log 2. 1 CD copy of AOGCC Well Completion Report and Log ao~- ~~y Delivered by Received by . ~ ~n Y Y "~-~" ~ ~ Date -~ ~ Date ~` ~~ ~ - (~~ Paul Mazzolini Operations Manager FEX L. P. 3601 C. Street Suite 370 Anchorage, AK 99503 Re: Exploration, Amaguq # 2 Sundry Number: 307-095 Dear Mr. Mazzolini: • Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed. form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court__ unless rehearing has been requested. DATED this ~ day of March, 2007 Encl. L`.' . (~~ Q i r l.nrn~c ~ RECEIVED tt~'.S 3~Za ~ • STATE OF ALASKA ~ MAR ALASKA OtL AND GAS CONSERVATION COMMISSION ~~}e7 1 9 ZOO7 APPLICATION FOR SUNDRY APPROVALS Alaska Oit & Gas Cons. Commission 20 AAC 25.280 . _ _,, 1. Type at Request: Ab~don Q • Suspend ^ Operational shutdown ^ Perforate ^ W aver Other ^ Alter caging ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension Change approved program ^ Puli Tubing ^ Perforate New Pool ^ Re-enter Suspended Welt ^ 2. Operator Name: 4. Current Well Ck-rss: 5. Pe.Rnit to Drill Number. FEX L.P. Development ^ Expkx~atory ~ . 2176-164 3. Address: Stratigraphic ~ Service ^ 6. API Number: 3601 C Street Suite 370 Anchorage AK 99503 50-279-20017-00 7. If perforating, chest approach in pad(s) opened by this operation to nearest 8. Well Name and Number. property line where ownership ~ landownership changes: Spacing Exception Required? Yes ^ No ^ Arna u # 9. Property Designation: 10. KB Elevation (ft}: 11. Field/Pod(s): AA-085484 " 18.fi Wildcat ' 12• PRESENT WELL CONDITION SUMMARY Toth Oepth MD (ft}: Total Depth TVD (ft}: Effective Depth MO (ft}: Effective Depth TVD (ft}: Pfugs (measured}: Junk (measured}: 8750 8750 8750 8750 Casing Length Size MD TVD Burst Collapse Structural Conductor 80 16" 100 100 1640 670 Surface 2115 95!8" 2115 2115 5780 3090 Intermediate 8423 7" 8423 8423 7240 5410 Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): none none Packers and SSSV Type: Packers and SSSV MD (ft): 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory Q ' Development ^ Service ^ 15. Estimated Oate for 18-Mar-07 16. Well Status after propped work: Commencing Operations: Oil ^ Gas ^ Plugged ^ Abandoned • Q 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: ~~ ~ ~ ~.~ ~ ~ 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name ~~~ / "(pZZOC,IIt! ( 7Tt- ~g23 Title t Signature ~ ~ ~ Phone Date Q~l ~ ~ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~~~-+ ~ ~t_Jr -'-~- Plug Integrity 0 BOP Test ^ Mechanical Integrity Test ^ Location Clearance ,~ ~ ~~ S o~ ~.~-o~- ~' rna~r-Qtr.~~ 5~~~ ~ ~c ©~~-v:~ h€ Subsequent Form Required: ~ + Q *--t ~~ ~~~ ~~ ~ ~DQ/ '1 ` APPROVED BY ISSIONER THE COMMISSION Date: 3'~~ "d A d b pprove y: ~~1~ ~~' ~3~~.0~ Form 10-403 Revised 06/2006 Submit in Duplicate,~~~~~, • Plug and Abandonment: A. Plua and Abandonment General Guidelines and Discussion: All plugging operations are to be conducted in accordance with AOGCC regulations as detailed in 20 ACC 25.105. Note: Provide a minimum of 24 - hournotice to AOGCC field inspectors prior to abandonment operations. General guidelines for abandonment cementing: • Obtain and review the Test Report from Halliburton on the job blend prior to pumping the cement. Include this report in the permanent well file. DO NOT pump cement if there are any doubts as to cement quality, quantities, pumping times or thickening times. • Confirm that adequate volume of heated (70° to 80°) mix water is ready. • Check any available caliper logs and confim~ volume. • Circulate and cement at or below safe ECD limits as indicated in the Halliburton cement hydraulics calculations. Drop the rate below 2 bpm for the last 10 bbls of displacement when setting balanced plugs. Under-displace a minimum amount to guarantee that pipe will pull dry. • Ensure suction pods on rig pump intake have been cleaned before beginning displacement. • Ensure that the cement unit is manifolded so that it can take over displacement of the slurry if there should be a failure of the rig pumps. • Keep the down time periods as short as possible. • Pretreat return pit and bulk storage tank w/ Sodium Citrate prior to job. B. Cased Hole Abandonment: The well will be cleaned out and the bottom hole cement plug will be set from 100ft below the intermediate casing shoe to 150 ft above the Intermediate casing shoe. A 7" retainer will be set 50 ft above the casing shoe. Mud will then be injected through the retainer to establish a breakdown and flow rate. The casing shoe cement plug will be set through the retainer and a 100 ft cement cap will be dumped on top of the retainer. Bottom Hole Plug, 8524 to ±8273': 1. Circulate and condition hole to run wire-line logs as per we{I plan Amaguq #2 Page 1 3/18(2007 FEX LP DriSling Program NW NPR-A 2006-2007 Qritting season • ~~ 2. Wire line fog use caliper logs to confirm cement volumes. 3. Assess hole conditions and run wiper as required. if wiper trip is deemed to be required spot a 100' water pill from 8423-8323' 4.15 barrels on the way out of the hole. 4. Run cement retainer to 8373' on wire-line. Be careful to not run past the casing shoe depth with the retainer. 5. Run in the hole with retainer stab in tool. Circulate above .retainer to be sure it is clean. Stab into retainer and confirm seal. Retainer must be pressure tested to confirm placement. When stabbed in pressure test back side to 0.25 psi/ft. 8424 *.25 psi/ft. = 2106 psi surface pressure. Record all results. 6. Confirm breakdown pressure and flow with mud before pumping. cement. Fracture gradient is expected to be 15.5ppg or a 2688psi applied surface pressure @ 8423' and 9.4 ppg mud wt. 7. R/U Halliburton lines. Test lines to 3000 psi. Use water and break circulation with cement unit and confirm desired cementing displacement rate is obtainable. 8. Cement per the final program with 15.8 ppg Premium class G. ~v~o Approximate TOC will be at 8273' a total slurry volume of 9.37 barrels will be pumped. Pump 5.55 barrels of cement while stung into retainer. Release out of retainer and pump 3.82 barrels of cement on top of retainer. 9. POOH to 8100' and flush drill pipe. 9 5/8" X 7" Casing annulus Plug, ± 5' to 2215': f 1. Rig up Halliburton cement lines to the annulus wing valves and test to 4000 psi. 2. establish breakdown pressure and rates with water or mud before pumping cement. Record pressures. ~5 ~h~ ~~ 3 ~~~~ 3. Mix and pump cement per the final program with 10.7 ppg Permafrost '`_° t~2o ~~ Type L. TOC will be at 5' and approximate slurry volume will be 61.8 bbl. ~ ~ Confirm all the cement and displacement volumes with any data as ~~-.~ indicated by caliper logs and as-drilled hole configuration. 4. Displace cement with just enough water to clean out lines Amaguq #2 Page 2 3/18(2007 FEX LP Drilling Program NW IYPR-A 2006-2007 Drilling season • • Surface Plug, 325' to 21.5': 1. POOH sideways from previous plug with drill pipe to 2600'. At 2600' stop filling hole this will leave +/- 325' of air space to force wiper plug through. 2. POOH and pick up 7" cement wiper plug push plug to 325' with drill pipe 3. Rig up Halliburton cement lines and mix and pump 11.7 bb! from (325- ~~©~ 18'} of 15.6 ppg Permafrost Type C cement. ~~~ 4. POOH to 21.5'(confirm this depth with ice thickness. The top of cement should be at 3' from original ground level. Do not allow top to be more then 5' from ground level.) and flush casing, wellhead and BOP. 5. POOH and UD stinger. Surface Abandonment: , 1. Nipple down BOP and wellhead. 2. Confirm TOC and top up to 5' sub surface if required. 3. Externally cut off 16" conductor and 9 5/8", 7" casing at least 3' below tundra surface. 4. Weld on prefabricated well cap and marker per AOGCC-and BLM requirements. 5. RDMO rig. 6. Remove cellar culvert wall and back fill with suitable material to original tundra level. 7. Clear and inspect location to BLM requirements. R~~~~ Amaguq #2 Page 3 3/182007 FEX LP Drilling Program NW NPR-A 2006-2407 Drilling season Re: FEX Amaguq 2 abandonment plan • • Subject: Re: FEX Amaguq 2 abandonment plan ~~~ ~~ ._ From: Thomas E Maunder <tom_maunder(c_r;admin.state.ak.us> Date: Sat, 17 Mar 2007 19:58:55 -0800 'I~o: "~~c~ll:, Scotty"'" 5~~~~I~ a-.talisman-ener~~y.com> CC: "!~1azzc~[ini, F'au~" L';~~1~~l.%OLI\[4r`lalisn~,~n-ener~~~.corn ~~1,)uick. ~lik~" --micl~~~el.yuiek(cc?asrccner~r~~.c~~in.~ "f~l~~t~c~. t~ii~t" ~ tnl.flyi~n ~l asi~ecnrr~~~.e~>m-~_ ~'ao<~cc f~rudhoe bayou admitl.state.ak.us=~ Scott, et al, I have looked at the proposed procedure. It looks appropriate except with regard to placing diesel in the casing. Since the well is being abandoned, no diesel should be left in the well. The mud you finish. drilling with should be left in the casing. With regards to the BOP test, since you will be finished drilling when you next trip and following the logging you will move to abandon, it is acceptable to waive the BOP test. Based on our discussion though, it appears that it would have been appropriate to test the whole stack when the annular was tested following the cement job. You already had the test plug in place. Was the choke manifold tested with the annular? Also, your reference for the plug specification is 20 AAC 25.112. A signed copy of the sundry and 1 copy should be submitted to Commission on Monday. Please notify the Inspectors regarding placing 'the plugs. If Tim Lawler is out there, then an Inspector will likely not come to the rig but that is their call. ~ Call or message with any questions. Tom Maunder, PE AOGCC ----- Original Messaq_e ----- From: "Volk, SCOtty" c~:Vo~.KCB-'~a_].ST'l~i~-et~lE'':~~.Ci~~?ll~ Date: Saturday, March 17, 2007 5:37 pm Subject: FEX Amaguq 2 abandonment plan To: tom maunuer~~admin.state.ak.us Cc: "Mazzolini, Paul" <PMAZZ~~LINI`=talisran-enercy.com>, "Quick, Mike" <~ITt1C:hael.glliCk~wcS~'":'eI.E;rgy.COT>, "Flynn, Tim" <tiiTi.fl'y~1=T~i~~iaSrCe1_e'rC:y.C.vm> Here is the abandonment plan and sundry application for approval as per our telephone conversation. Let me know what you think or if you have any questions or concerns. Paul Mazzolini will be coming into the office to sign the sundry shortlyl will send you a scan of the signed copy for your files at that time. Along with the abandonment approval I would also like to get your feed I back on if it would be ok to wave our upcoming scheduled 7 day BOP test.The test is scheduled for today we are currently drilling our rat hole for logging tools and are past our zone of interest. We are at 8712' we plan to TD at 8750' The sand we were looking for is not present. Planned operations are to log the 326' of open hole and abandon. We have just finished testing our annular and casing when we drilled out our casing last night, but have not done a full BOP test since March 10th. would it be possible to get a BOP test waver for the next few days of 2 3/19/2007 1:34 PM Re: FEX Amaguq 2 abandonment plan whilewe log and abandon? We have talked to your field personal about the possibility of a waver but they stated it would need to come from the Anchorage office.. « Copy of 10-403.x1s» « Plug and Abandonment.doc » Thanks, Scott Volk Drilling Engineer Arctic Wolf Office 907-771-1924 Cell 403-561-1763 2 oft 3/19/2007 1:34 PM ~ ~ Memo Date: 3/23/2007 Ta Tom Maunder AOGCC, Anchorage, AK 99501 907-793-1250 Cc: Paul Mazzolini Prom: Michael Quick RE: Weekly Update for FEX Exploration Project - Amaguq #2, Permit #: 206- 164 CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 16 March 2007 TD: `.8433°; MW: 9.7; Viscosity: 55. Lay down Tesco casing 0' running tool, P/U BHA #5. Test annular preventer to 2500 psi. RIH, drill out ES cementer, RIH to shoe-track at 8335', drill shoe track to 8378'. Test casing to 2500 psi for 30 minutes. 17 March 2007 TD: 8750'; MW: 9.4; Viscosity: 76. Drill out cement at shoe. 317' Drilled to 8750'. Short trip to 8712. Circulate bottoms up, condition for logs. 18 March 2007 TD: 8750'; MW: 9.6; Viscosity: 70. POOH, download 0' MWD/LWD data. Lay down MWD/LWD tools. Rig up Baker Atlas and run logging run #1. 19 March 2007 TD: 8750'; MW: 9.6; Viscosity: 70. Run logging run #2 and #3. Lay down HWDP. Make up cement retainer on DP and RIH. Set cement retainer at 8355', establish injection rate at 3 bbl/min at 2160 psi. Close annular preventer and test annulus to 2200 psi. 20 March 2007 TD: 8750'; MW: 9.6. Circulate bottoms up above retainer. Gas to surface at 9900 units -circulate out gas. Sting into retainer and pump cement. Pull out of stinger and pump 100' of cement on top of retainer. Pull 5 stands out, pump to clean out pipe. Lay down DP, slip and cut drill line, push wiper plug to 374' with 6 stands of DP. Pump Permafrost Type C cement from 374' to surface. Freeze protect annulus with diesel until more permafrost cement is delivered. Start Confidential Page 1 3/23/2007 to nipple down BOP's, and cleaning mud tanks. 21 March 2007 TD: 8750'. Clean mud tanks, rig down. Rig released at 21:00. 22 March 2007 Rig move to Aklaq #6. Confidential Page 2 3/23/2007 Memo Date: 3!16/2007 To: Tom Maunder AOGCC, Anchorage, AK 99501 907-793-1250 Cc: Paul Mazzolini From: Michael Quick RE: Weekly Update for FEX Exploration Project -Amaguq #2, Permit #: 206- 164 CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 9 March 2007 TD: 7400'; MW: 11.1; Viscosity: 58. Complete logging run #1. 0' Run wireline logging run #2. Run wireline logging run #3. Rig down logging tools and wireline. Prepare for BOP test. Pick up test plug. 10 March 2007 TD: 7400'; MW: 11.1; Viscosity: 78. Pressure test BOP per 0' regulations. Test witnessed by AOGCC inspector. Make up bit and BHA, load nuke sources, shallow test MWD tools, RIH to shoe. Circulate bottoms up, RIH to 7390', circulate bottoms up. 11 March 2007 TD: 8326'; MW: 11.1; Viscosity: 61. Drilled to 8326'. 926' 12 March 2007 TD: 8433'; MW: 11.2; Viscosity: 65. Drilled to 8389', circulate 10T out samples. Drilled to 8433', circulate out samples. Wiper trip to 7300' (tight spot at 7532'). RIH, 3' of fill on bottom. Circulate hole clean, spot pill, pump out of hole to 7300'. POOH to shoe, monitor well. 13 March 2007 TD: 8433'; MW: 11.2; Viscosity: 65. Finish POOH, lay down 0' BHA and down load LWD tools and lay down. Change upper pipe rams to 7", rams not correct for stack, notify AOGCC and BLM, verbal approval to continue. Rig up Tesco Casing Running System, Run 7" casing to shoe. Break circulation. Confidential Page ] 3/16/2007 • 14 March 2007 TD: 8433'; MW: 11.2; Viscosity: 65. Continue running 7" 0' casing. Started losing circulation just outside the shoe, casing running speed was slowed to 2 minutes per joint. Washed and reamed casing from 8305'. Hole started packing off and had loss of circulation. Gas count went from 500 to 8000 units, with an increase of returns, well was shut in with annular preventer and observed for 20 minutes. Pressure stabilized at 66 psi after 5 minutes. Pressure was bled off with the choke, flow had stopped. Reaming casing started and continued to bottom with no additional gas influx. Worked casing last 120 feet to bottom. 15 March 2007 TD: 8433'; MW: 11.2; Viscosity: 65. Land 7" casing. Rig 0' down Tesco, rig up cementer. Cement 7" casing. Confidential Page 2 3/16/2007 REVISED Date l Precautionary shut-in, 7" casing, Amaguq #2 • Subject: REVISED Date /Precautionary shut-in, 7" casing, Amaguq #2 ~~ ~~~~7 From: Doyon Arctic Wolf ~doyonaw cr,talisman-dc.con7% Date: Fri, 16 Mar 2007 21:46:14 -0800 ~~ To: jeff_jonesC~ulmin.~tate.ak.us CC: MichaelOuirl:_rr,tsrccnergy.e©m, "F;n~i~.~ich, ~~~1c1" ~n~knc:ze~ich~cr.(ali~nr~n-ener~,v.coir~-~- ,<< ~„ F1ynn,Tiro <Tim.Fl~TU~.~r~zisrcellergv.cc~m=,s~~~lk~cr.~~alisrr~~ui-cncr~~~~.c~~m From: Doyon Arctic Wolf [mailto:doyonaw~taiisman-dc.com] Sent: Friday, March 16, 2007 5:52 AM To: 'jeff_jones@admin.state.ak.us' Cc: Knezevich, Mel; pmazzolini@talisman-energy.com; Tim Flynn; (svolk@talisman-energy.com); (Michael.Quick@asrcenergy.com) Subject: Precautionary shut-in, 7" casing, Amaguq #2 ~ ~-p 20 ~- l6q Jeff A precautionary shut-in was performed (3114/07) at 21:30 hrs while running 7" casing on the Arctic-Wolf rig, Amaguq #2. The following is a summary of what happened leading up to the shut-in. 1. At 8408' MD, a spike in formation gas of 9000 units was encountered when bottoms up was circulated to the surface, This gas spike quickly fell back to nothing as circulation continued. When the mud pumps were shut off and the well observed, a loss rate of 2 BBLS per/hr was noted. At this point our mud weight in and out was 11.2 PPG, with no light or heavy spots. 2. POOH to run casing, a two barrel per/hr loss rate was observed. 3. Rig up and run casing. >From the start we had to RIH at two minutes per joint or longer. Anything faster than this would produce fluid loss rates of 25 to 30 bbls/per hour. When we stopped running pipe and observed the well it would flow back. It was determined to be well bore breathing. 4. Approximately two bbls were pumped into each joint while RIH. Fill pipe and break circulation every 20 joints. 1 of 2 3/19/2007 11:03 AM REVISED Date /Precautionary shut-in, 7" casing, Amaguc} #2 • 5. Running in hole slowly would stilt produce losses of 10 bbls/per hour. 6. The deeper we got, the worse it got. Harder to rotate, packing off, had to work pipe slowly to keep circulation. hole were 7. At 8305' MD we started reaming to bottom. Again, packing off, loss of circulation and tight big problems. 8. About this time we noticed a gas count starting to rise, It rose from 500 units to 8000 units very quickly. the annular PSI. greatly caution. decreased. It was decided to ream ahead using extreme 10. As reaming continued, it was noticed that the gas count and flow back had decreasing to an acceptable level. The well was observed, an increase in % of returns was noted. The well was shut in with preventer and observed for 20 minutes. Well bore PSI leveled off after five minutes to 66 9. The choke was opened to bleed of pressure. It was noticed that the flow from the well had 11. Operations continued without further incident. Mike Ross Co. man Artic-Wolf rig 907-771-0536 REVISED Date / Precautionary shut-in, 7" casing, Amaguq #2 2 of 2 3/19/2007 11:03 AM [Fwd: Precautionary shut-in, 7" casing, Amaguq #2] • C~ Subject: [Fwd: Precautionary shut-in, 7" casing, Amaguq #2] ~ ~1~~7 From:.Teff Jones <jeff_jones~zadmin.state.ak.us> Date: Fri, 16 Mar 2007 06:58:57 -0900 ~~~ ~ ~~~ To::~clmin ,-~OGCC Prudhoe i3~iv <io~er pruclhoe ha~~,~~?admin.state.ak.us ~ p,-~>i- ~~~ - ~~ Hello Jim, I was notified by phone last night that the Arctic Wolf rig (FEX) had shut in the annular preventer and were circulating out a "gas kick". I asked them to send the attached e-mail description of events. I spoke with Mike Ross (FEX Rep.) this morning and told him that he had to test BOPS after use and when anything is changed. I also asked him to notify Tim Lawler (BLM) and give him the opportunity to witness. Thanks, Jeff ';Precautionary shut-in, 7" casing, Amaguq #2' Content-Type: message/rfe822 1 of 1 3/16/2007 9:31 AM Precautionary shut-in, 7" casing, Amaguq #2 • • Subject: Precautionary shut-in, 7" casing, Amaguq #2 From: Doyon Arctic Wolf <doyonaw@talisman-dc.com> Date: Fri, 16 Mar ?007 05:52:13 -0800 To: jefF_jones ~i ~~clrnin.state.~ik.u CC: "Knezevi~h. ~1c1" <mknezevichCtalisin~u~-en~r~~v.rat~i>,~mar~~~lin~ ~i~tali~~l<ui-ci~crgy.com, 7iiT~ Fl~~nn °-lim.tl~nn u;asrcenergy.com>, s~~o1F@talis~l~an-energy.roin. hlic,hael.Q<<ick ~rasrcenergy.eom Jeff A precautionary shut-in was performed yesterday (3/15/07) at 21:30 hrs while running 7" casing on the Arctic-Wolf rig, Amaguq #2. The following is a summary of what happened leading up to the shut-in. 1. At 8433' MD, a spike information gas of 9000 units was encountered when bottoms up was circulated to the surface, This gas spike quickly fell back to nothing as circulation continued. When the mud pumps were shut off and the well observed, a loss rate of 2 BBLS per/hr was noted. At this point our mud weight in and out was 11.2 PPG, with no light or heavy spots. 2. POOH to run casing, a two barrel per/hr loss rate was observed. 3. Rig up and run casing. >From the start we had to RIH at two minutes per joint or longer. Anything faster than this would produce fluid loss rates of 25 to 30 bbls/per hour. When we stopped running pipe and observed the well it would flow back. It was determined to be well bore breathing. 4. Approximately two bbls were pumped into each joint while RIH. Fill pipe and break circulation every 20 joints. 5. Running in hole slowly would still produce losses of 10 bbls/per hour. 6. The deeper we got, the worse it got. Harder to rotate, packing off, had to work pipe slowly to keep circulation. hole were 7. At 8305' MD we started reaming to bottom. Again, packing off, loss of circulation and tight big problems. 1 of 2 3/16/2007 931 AM Precautionary shut-in, 7" casing, Amaguq #2 • 8. About this time we noticed a gas count starting to rise, It rose from 500 units to 8000 units very quickly. the annular PSI. greatly caution. The well was observed, an increase in % of returns was noted. The well was shut in with preventer and observed for 20 minutes. Well bore PSI leveled off after five minutes to 66 9. The choke was opened to bleed of pressure. It was noticed that the flow from the well had decreased. It was decided to ream ahead using extreme 10. As reaming continued, it was noticed that the gas count and flow back had decreasing to an acceptable level. 11. Operations continued without further incident. Mike Ross Co. man Antic-Wolf rig 907-771-0536 Precautionary shut-in, 7" casing, Amaguq #2 2 of ~ 3!16/2007 931 AM RE: Request for Waiver • Subject: RE: Request for Waiver From: "Mazzolini, Paul" <PMAZZOL[M~ci!talisman-energy.com> Date: Tue, 13 Mar 2007 13:4437 -0600 'ho: -f~homas Maun~l~~r -tc~m maun~ier~tatln~in.~t~it~.~~k.us>, Gre~~ '~~~hl~~ cr al:.hln~.'~c,~ CC: Uoyon l~~rc~ic ~~~~~lf <doyonaw@talism~in-~le..cc~m>; "Knezevich, Melville" ~MKnezevich ~« tal isrnan-energy.com> Tom/Greg, Your assistance in this matter is greatly appreciated and work is presently underway to get the correct rams for all casing and tubing. sizes to location as soon as practical. Regards, Paul -----Original Message----- From: Thomas Maunder [~railto:to:r r~aander~^~adnin.stat.e.ak.a~s] Sent: Tuesday, March 13, 2007 10:41 AM To : Greg_Nobl.e'@a:~'...~._b..='~'..~._~o~r Cc: Mazzolini, Paul; Doyon Arctic Wolf; Knezevich, Melville Subject: Re: Request for Waiver Paul, Greg lists the same points I was drafting. The AOGCC approves the waiver as well, given the circumstances. If 7" is planned on the next well, arrangements should be made to have the proper carriers/rams available. Good luck with the operation. Tom Maunder, PE AOGCC -, G~~~e ~loble?~k,b~n. oa wrote, On 3/13/2007 11:31 AM: Paul, Given the circumstances, BLM approves the waiver. As we discussed, I am making the following assumptions in addition to those you've noted. Pit volumes are monitored closely during the running of the 7". The rig crew has clear instructions as to casing running speeds and the measures that will be taken should an influx be experienced. "Mazzolini, Paul" <PMAZZOLINI@talis man-energy.com> To 03/13/2007 11:03 AM "Thomas Maunder" ~;t::Til [11c3.LiT:C'~.F'7'(pia.Cam..1..I"I......~:.t:;f:..;:zk.1.7.~>, <c~rect r).O,le~=%ak.:77.m.c~;;v: CC CMKne ZU'~r1Cf7CsrtallSm~?n c, TiergiJ.C'~[:1>, "Knezevich, Melville" ~~ ~ ~ ~~~~ 1 of 2 3/13/2007 12:28 PM RE: Request for Waiver "Doyon Arctic Wolf" Subject <:do°,%on-w?t lisman -dc . con: Request for Waiver ', Tom/Greg, While in the process of rigging up the Doyon Arctic Wolf to run 7" casing it was found that the ram carriers for the 7" pipe rams on the Shaffer BOP stack are the wrong style for the stack. We have found out that there are two styles of carriers that Shaffer makes. We do have a cross over on the location-that was built for the BOP test joint that goes from the 7" buttress connection to the 4" full hole connection that will be staged on the rig flpor. ', FEX is requesting that we be allowed to run the 7" casing utilizing the 11" annular preventer with the ability to pickup a joint of 4" drill pipe with the crossover so that the 4" pipe rams can be utilized should a well control incident be supected. The 8 1/2" hole is in excellent condition as of the trip out of the hole, there have been no losses on the trip or while we have been out of the hole and we have an 11.2 ppg mud in the hole for Miluveach shale stability. Hole fill was "on the money" during the trip out according to the trip sheet and flow show/PVT equipment. We would appreciate a verbal response at your earliest convenience to 382-4393. Regards, Paul 2 of 2 3/13/2007 12:28 PM 4 Mr. Paul Mazzolini Operations Manager FEX L. P. 3601 C Street, Suite 370 Anchorage, AK 99503 • SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE,AIASKA 99501-3539 PHONE (907).279-1433 FAX (907) 276-7542 Re: Exploratory, Amaguq #2 FEX L. P. Permit No: 206-164 Request to Waive 20 AAC 25.030(fl -FIT/LOT After Setting Casing Dear Mr. Mazzolini: A review of our files has indicated that the approval letter for the subject well issued December 20, 2006 omitted a response to your December 6 letter concerning a waiver to the Formation Integrity/Leak Off Test ("FIT/ LOT") requirements of 20 AAC 25.030(f). Your request is granted. Hole stability in the intermediate geologic sections drilled in NPRA can be variable with potential troublesome zones encountered immediately above prospective horizons. The solution to isolating these troublesome sections has been to set casing at the boundary of the zones. Where the troublesome sections do not exist, setting casing shallower is not necessary since the pore pressure gradient does not change as the strata is drilled. In either case, ultimate formation isolation is achieved by cementing the casing using standard techniques. The regulatory requirement to conduct aFIT/ LOT after setting casing is to demonstrate the competency of the newly drilled earth and the cemented casing to withstand higher pressures often needed to overbalance deeper horizons. Where casings are not drilled out, observation that the cementing operation was accomplished without problems is accepted in a large number of cases that satisfactory isolation of the casing and formations was achieved. 20 AAC 25.030(g) gives the Alaska Oil and Gas Conservation Commission ("Commission") discretion to approve variances to the casing and cementing requirements so long as the general requirements of 20 AAC 25.030(a) (1 - 8) are satisfied. The Commission finds that satisfactorily cementing the casing as planned should satisfy the regulatory requirements. 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 • • Mr. Paul Mazzolini March 13, 2007 Page 2 of 2 provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 65,9-3607 (pager). • Memo C~ Date: 3/9/2007 To: Tom Maunder AOGCC, Anchorage, AK 99501 907-793-1250 Cc: Paul Mazzolini From: Michael Quick RE: Weekly Update for FEX Exploration Project - Amaguq #2, Permit #: 206- 164 CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 2 March 2007 TD: 5188'; MW: 9.5; Viscosity,: 50. L/D LWD tools. Pressure 0' test BOPE per regulations. P/iJ BHA #3. 3 March 2007 TD: 5680'; MW: 9.8; Viscosity: 49. RIH to 2100', break 491' circulation, RIH to 5188'. Drill to 5680'. 4 March 2007 TD: 6553'; MW: 10.5; Viscosity: 46. Drill to 6553'. 873' 5 March 2007 TD: 6726'; MW: 10.5; Viscosity: 50. Drill ahead to 6726', with 173' pump problems (changed two swabs and pop off valve). 6 March 2007 TD: 7400'; MW: 10.5; Viscosity: 66. Drill to 7400', circulate 674' and work pipe per geologist, 10 bbl loss at 7400'. Pump sweep. 7 March 2007 TD: 7400'; MW: 10.5; Viscosity: 56. Circulate out sweep, 0' wiper trip to shoe at 2115' -tight spots at 6960', 6643', 5680', pump out of hole from 5680' to 4625'. Slip and cut drill line. RIH to 6668', wash and ream to 6800', RIH to 7400' - no fill on bottom. Circulate and condition hole for logs. 8 March 2007 TD: 2435'; MW: 9.4; Viscosity: 44. POOH, download and L/D 0' LWD tools. Rig up and run wireline logging run #1. Confidential Page 1 3/9/2007 L~ Memo o~c~: 3iv2oo7 To: Tom Maunder AOGCC, Anchorage, AK 99501 907-793-1250 Cc: Pau- Mazzolini From: Michael Quick RE: Weekly Update for FEX Exploration Project - Amaguq #2, Permit #: 206- 164 CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 22 February 2007 TD: 2133'. Clean pipe rams and change rubbers. Pressure test BOPE to BLM requirements. Test witness waived by AOGCC and BLM (Tim Lawlor). Nipple up riser 23 February 2007 TD: 2133'. Pick up 4" DP, rack back, pickup DP and pressure test casing to 2500 psi, POOH to pick up BHA. 24 February 2007 TD: 2250'; Mud Weight: 9.5; Viscosity: 54. M/U BHA, 117' shallow test LWD tools, RIH. Tagged cement at 1944', drill out cement, float and shoe, drill to 2155', circulate hole for FIT. Attempt LOT, no breakdown, shoe held at 16.0 ppg EMW. Drill to 2250'. 25 February 2007 TD: 2999'; Mud Weight: 9.4; Viscosity: 44. Drill to 2999' 749' 26 February 2007 TD: 3560'; Mud Weight: 9.6; Viscosity: 45. Drill to 3248'. 561' Weld torque tube in derrick. Drill to 3560' 27 February 2007 TD: 4308'; Mud Weight: 9.7; Viscosity: 42. Drill to 4308'. 748' 28 February 2007 TD: 4656'; Mud Weight: 9.8; Viscosity: 45. Drill to 4605'. 348' Blow down top drive for wiper trip. POOH to shoe at 2115', tight spots at 4603', 4520', 4341', 4015' 3772', 3019', 2887', 2719'. RIH to 4438', circulate hole clean, ream to 4605', drill fill to 4656'. Confidential Page 1 3/2/2007 1 March 2007 TD: 5188'; MW: 10.0; Viscosity: 48. Drill to 5188', bit quit 532' drilling, circulate and condition hole, POOH with no tight spots. Down load LWD tools. Confidential Page 2 3/2/2007 Re: Pressure Test Subject: Re: Pressure Test From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Thu, Ol Mar 2007 09:52:50 -090 To: DoyotlArctic Wolfe<doyona~~!u.talisnlan-dc.con~ CY`: l~im Flinn ~ -~l~in~.(]~~nn u-asrcerler~~~~.c~~m%. "hner_e~ ich, [~'lel" <-mknci.evich(~raafisman-enerw.com=~, AOGC`C Worth Slope Office =aogcc~rudhoe_ h<i~ ~«'a~lmin.state.ak.us..:- ~~c~ -«~ Ernie, Based on the information you have provided, your request is granted. The BOP test should be accomplished when you are next on the bank. Call or message with any questions. Tom Maunder, PE AOGCC Doyon Arctic Wolf wrote, On 3/1/2007 8:56 AM: Hi Tom. This is a request for a B.O.P. pressure test extension. The rig is the Doyon Artic Wolf drilling for FEX @ Amaguq #2 site. We pressure tested on 2/22/07 and drilled out on 2/24/07. We are currently drilling 8 1/2" hole, at a depth of 5000' at 0900 hrs 3/1/07. we are planning to drill to 7400'+-. We will then hoist to log. I am seeking an extension to that point. Thanks. Ernie Natte - FEX company man 907-771-0536 -----Original Message----- From: Thomas Maunder [m~;ilto: tom mau~~de.rctiad:ri~- .state . ak. us] Sent : Thursday, March O1, 2007-8:37 AM To: Doyon Arctic Wolf Subject: my eddress Ernie, Here is my eddress. Tom Maunder 1 of 1 3/1/2007 9:53 AM • Memo Date: 2/23/2007 To: Tom Maunder AOGCC, Anchorage, AK 99501 907-793-1250 Cc: Paul Mazzolini From: Michael Quick RE: Weekly Update for FEX Exploration Project -Amaguq #2, Permit #: 206- 164 CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 15 February 2007 TD: 489'; Mud Weight: 10; Viscosity: 56. Spud well at 04:00, 409' drill 12-1/4" hole to 489', POOH to P/U BHA #2 with LWD/MWD. 16 February 2007 TD: 1427'; Mud Weight: 10; Viscosity: 56. P/U BHA #2 with 938' LWD/MWD tools, drill to 986', repair topdrive compensator, drill to 1427' . 17 February 2007 TD: 2133'; Mud Weight: 10.3; Viscosity: 52. Drill to 2133', 706' well site geologist called surface casing point. Short trip to 1000', circulate at tight spots, RIH to TD, circulate and condition the hole for casing. 18 February 2007 TD: 2133'. Circulate and condition the hole, POOH, tight spots from 1000' to surface. Bit and motor stab were packed with clay. Download LWD/MWD tools, lay down 8" BHA. Rig up casing running tools, run 9-5/8" casing. 19 February 2007 TD: 2133'. Lay down casing tools, M/U centralizers and stab in sub, RIH. Stab in float collar, break circulation. Pump 285 strokes, pressured up to 2700 psi. Rigged down cement head, dart was gone. POOH, P/LT casing joint, could not circulate, L/D joint and casing tools. M/U BHA with 6-1/8" milltooth, tag landing collar and dart plug at 2031'. 20 February 2007 TD: 2133'. Drill landing collar and dart plug at 2031', Circulate Confidential Page 1 2/23/2007 ~ ~ clean, flow check, POOH, L/D BHA. Stab into casing stump, swedge into casing and hook up cement line, circ hole at slow pump rates, pull and reciprocate casing to get thick mud out. Cement 9-5/8" casing, took 45 bbls of good cement returns to surface. WOC. Nipple down diverter. 21 February 2007 TD: 2133'. Continue to N/D diverter, M/U casing head and pressure test. N/LT 5000 # BOP stack. Replace Upper seals on Pipe ram blocks. Confidential Page 2 2/23/2007 SARAH PAUN, GOVERNOR ALASKA OIL AND CAS 333 W. 7t6 AVENUE, SUITE 100 ANCHORAGE, ALASKA99501-3539 PHONE (907) 279-1433 CUNSERVArI`ION COMMISSION FAX c907) 276-75423 Mr. Paul Mazzolini Operations Manager FEX L. P. 3601 C Street, Suite 370 Anchorage, AK 99503 Re: Exploratory, Amaguq #2 FEX L. P. Permit No: 206-164 Surface Location: 2522' FSL & 1875' FWL Sec 18, T12N, T15W, UM Bottomhole Location: 2522' FSL & 1875' FWL Sec 18, T12N, T15W, UM Dear Mr. Mazzolini: Enclosed is the approved application for permit to drill the above referenced exploratory well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note that in addition to the proposed logging program, an openhole sonic or density porosity log must be recorded in the surface hole to enable evaluation of water salinity in shallow aquifers at this remote location. If formation testing is planned, a Sundry Notice (Form 403) should be submitted in advance of the operations. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 6: DATED this ~~day of December, 2006 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ALA . OfL ANO GAS CONSERVATION COM ~ ~I N PERMIT TO DRILL ~~ I~a` 20 AAC 25.005 ~~rw p~C Q 8 ZOn6 tllaelrg (l11 ~ G>its Cans. Clx>t~mission~ 1a. Type of Work: Drill 0 Redrill ^ Re-entry ^ 1b. Current Well Class: Exploratory ^, Stratigraphic Test ^ Service ^ Multiple Zone ^ Development Oil ^ Development Gas ^ Single Zone ^ 1c. Specify if well is proposed f R~tcharage Coalbed Methane ^ Gas Hydrates ^ Shale Gas 2. Operator Name: FEX LP. 5. Bond: Blanket o ~ Single Wefl ^ Bond No. SBGT736907 11. Well Name and Number: Amaguq #2 3. Address: 3601 C Street, Suite 370 Anchorage AK 99503 6. Proposed Depth: MD: 8427. ~~ 8427 12. Field/Pool(s): ' 4a. location of Well (Govemmentak Section}: Surface: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM 7. Property Designation: AA-085484 Wildcat Top of Productive Horizon: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM 8. Land Use Permit: LAS 25297 13. Approximate Spud Date: Total Depth: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM 9. Acres in Property: 11342 14. Distance to Nearest Pr pe :, ' ' 4b. Location of Well (State Base Plane Coordinates}: Surface: x- 279459.51 y_ 5997095.6 Zor 5 10. KB Elevation (Height above GL): 74.6 feet 15. Distance to Barest Welt Within Pool: 16 miles 16. Deviated wells: Kickoff depth: feet Maximum Hole Angle: degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 4306 Surface: 3379 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data} 20" 16" 65# H-40 BTC 80' 0' 0' 80' 80' Pemsafrost cement to surface 12-1/4" 9-5/8" 40# L-80 8TC 2300 0' 0' 2300 2300 197 sx Permafrost Lead, 201 sx 8.1/2" 7" 26# L-80 BTC 8272' 0' 0' 8272' 8272' 2 Stg (154 sx/186 sx} Class G ce 6 1/8" 5" 18# L-80 STL 295 8132 8132 8427 8427 37 sx Premuim Class G 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft}: Totaf Depth TVD (ft}: Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft}: Junk (measured}: Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft}: Perforation Depth TVD (ft}: 20. Attachm~~ejnts: ~,E' Filing Fee 0 BOP Sketch [~` Drilling Program Q Time v. Depth Ptot Shallow Hazard Analysis ~- /`'" ~ty'~ Property Plat 0, Diverter Sketch t~ Seabed Report ^ Drilling Fluid Program 0 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. thereby certify that the foregoing is true and correct. Printed Name Paul Mazzolini Signature ~_ _ _ Date Contact Title Operations Manager f Phone 907 339 7614 Date j ~/~ ~ Commission Use Only Permit to Drill ~~/ / ~ Number: .~O ` ~ API Number. 50- Z~' 20~ ~ 7-Q~ Permit Approval Date: See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce Coalbed methane, gas hydrates, or gas contained in shales: Other: ~~ r~ ~~ ~~~ ~~ `G~~' Samples req'd: Yes[ No^ Mud log req'd: Yes[/~ No^ \ HZS measures: Yes[ No^ t Directional svy req'd: Yes^ No[/~ silCj/i{/l.~b'A. ,S(~~-1/tn.( ~'~j t.~t~~ ,(~ tZ./~/• AP.PJROVED BY THE COMMISSION DATE: Z ~' yp ~ D v ,COMMISSIONER Form 10-401 Revised 12/2005 O R ~ ~ Submit in Duplicate Re: Amaguq #2 . • Subject: Re: Amaguq #2 From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Thu, 07 Dec 2006 10:05:35 -0900 ~_`,~ ~ - ~ ~ ~--i To: Thomas Maunder <tom_maunder@admin.state.ak.us> CC: "Flynn, Tizn'" <Tim.Flynn@asrcenergy.ec~rn>, "Volk, Scotty" <Scotty.Volk@asrcettergy.com> Scott, I have compared the answers with the permit package. It is probably appropriate to bring over a new 401 so that a "clean" copy is in the file. We need an original and copy of the completely filled out 401. It is not necessary to bring public information copies. All submitted information is confidential for a minimum of 25 months following completion unless a request is made to hold information confidential longer. Let me know when you are coming over. I'll be off to lunch about 11 or so and back around 1. Tom Maunder, PE AOGCC Thomas Maunder wrote, On 12/7/2006 8:10 AM: Tim and Scott, Let me take a look at these answers and I will let you know about bringing over the new permit. Thanks, Tom Maunder, PE AOGCC Flynn, Tim wrote, On 12/7/2006 7:00 AM: Tom I have a signed permit with the changes made. can have it sent over if needed. Here are the corrections '' I will be leaving town tonight and back in the office on the 1 gth Scott Volk will be in the Anchorage office available for questions or concerns regarding the APD. Thank you Tim Flynn Project Drilling Engineer 3900 C ST Suite 602 Anchorage, AK 99503 Cell 907 317-5504 Office 907 339-6271 Tim, 1 of 3 3/9/2007 3:00 PM Re: Amaguq #2 ~ • We have been reviewing the permit application and have some questions, not in any particular order. 1. The setting depth of the 7" casing (8214') given on the 401 does not agree with the depth given in "Operational Considerations - Lost. Circulation and Sloughing Shales" (8272'). '' The correct casing setting depth of the 7" Casing is 8272. The form has been updated. 2. 100' of overlap is the minimum rewired for liners. Using the numbers on the 401, only 82' is calculated. Using the 8272' depth mentioned above, the overlap is 140' which is likely what you intended. ', We will be setting at 8272'md to give us 140' of overlap. 3. Your planned surface casing cement volume is reduced from what was pumped on the well last year at similar depth. If a similar volume is left in the earth on this well only about 20 bbls is left to circulate. This is much "tighter" than I have seen other plans. Will you be running a caliper in the surface hole to adjust the volume? Not planned. I understand the need to keep waste volumes reduced, however not getting cement to surface is something to be avoided. I note you plan to use an inner string which does give you greater volume control. Your comments on this will be appreciated. The cement program this year is based on what was achieved in Aklaq #2 last year. After the job, we had calculated a 5% excess of cement based on the capacity of the hole. { Although we recovered 80 bbls during the job, we feel the cement job went well. A solid shoe was achieved and cement was brought to surface. We are performing an inner string job, so our intent is to achieve similar results as last year. We will have 300bb1s of cement on location which equates to 180°I° excess if the entire batch needs to be pumped. The samples last year reported high levels of clay and very low % of gravel, thus helping to keep the permafrost better in gauge. 4. 4306 psi at 8427' tvd is given as the maximum expected bottomhole pressure in "Operational Considerations - Pressures" with 3379 psi given as the calculated maximum anticipated surface pressure (HASP). In block 17 of the 401, 3379 psi is given as the maximum downhole pressure and 2116 psi is given as the HASP. Would you reconcile these pressures? In the pressure calculations and drilling risk section, 2116 psi is given as the resulting surface pressure based on fracturing the surface casing shoe. While considering the possibility of shoe fracture is prudent, the pressure possible neglecting fracture is what should be listed in block 17. This has been updated to 4306 and 3379 on the 401 5. In "Operational Considerations - BOP System and BOPS Testing" 2116 psi is also listed. This value should be reconciled as well. This has been changed to 3379 psi 6. There are some differences in the connection types listed on the 401 versus the time curve (liner in particular) versus the drilling procedure (liner, step 23) versus the "Casing Properties and Design" sheet. Please reconcile. The 401 has been changed to STL connection 7. Obtaining a waiver to the LOT after drilling out of the 7" casing i~ mentioned in step 16. This waiver should be requested as soon as practical so that it can be evaluated along with the permit application. The letter has been generated and will be sent today 2 of 3 3/9/2007 3:00 PM Re: Amaguq #2 • 8. Is there a possibility that the 5" liner will not be set if drilling/logging information does not prove encouraging? Due '.o our remote loca~ion ....1.~ yawing the li7ier o_~ loca`icn, it is hig~ilx== likely we ~~:ill run.. it. The cosy o^ moving it back is very sa~_taeaial. Even if the logs are not as good as expected, it keeps testing as an op`~ion for the next year. Thanks in advance for your reply. Call or message with any questions. Tom Maunder, PE AOGCC 3 of 3 3/9/2007 3:00 PM RE: Amaguq #2 • • Subject: RE: ;y~na~uq #2 From:.."Flinn, Tim" Tim.t~1ynn@asrcenergy.con~> Date: "[~hu, 07 Dec 2006 07:U0:24 -0900 To: hhomas Maunder °~-tom maunder(~iadmin.state.ak.us% CC: "Volk, Scotty" . _Scotty.~'olk(u-asrcener<w.com=~, Steve Davies =-stcve_davics~ci'~adll~in.siate.ak.us>, Dave Roby ~daveroh~~u;adnlin.state.ak.us> Tom I have a signed permit with the changes made. I can have it sent over if needed. Here are the corrections I will be leaving town tonight and back in the office on the 1 gth Scott Volk will be in the Anchorage office available for questions or concerns regarding the APD. Thank you Tim Flynn Project Drilling Engineer 3900 C ST Suite 602 Anchorage, AK 99503 Cell 907 317-5504 Office 907 339-6271 Tim, We have been reviewing the permit application and have some questions, not in any particular order. 1. The setting depth of the 7" casing (8214') given on the 401 does not agree with the depth given in "Operational Considerations - Lost Circulation and Sloughing Shales" (8272'). The correct casing setting depth of the 7" Casing is 8272. The form has been "~-'~ updated. 2. 100' of overlap is the minimum required for liners. Using the numbers on the 401, only 82' is calculated. Using the 8272' depth mentioned above, the overlap is 140' which is likely what you intended. _,~ We 5Rr~11 be setting at 8272'md to give us 140' of overlap. 3. Your planned surface casing cement volume is reduced from what was pumped on the well last year at similar depth. If a similar volume is left in the earth on this well only about 20 bbls is left to circulate. This is much "tighter" than I have seen other plans. Will you be running a Cali er in the surface hole to adjust the volume? Not planned. I understand the need to keep waste volumes reduced, however not getting cement to surface is something to be avoided. I note you plan to use an inner string which does give you greater volume control. Your comments on this will be appreciated. ,_,~,~, The cement program this year is based on what was achieved in Aklaq #2 last year. After the job, we had calculated a 5% excess of cement based an the capacity of the hole. 1 of 2 12/7/2006 8:10 AM RE: Amaguq #2 Although we recovered 8fl bbls during the job, we feel the cement job went well. A solid shoe was achieved and cement was braught to surface. We are performing an inner string job, so our intent is to achieve similar results as last year. We will have 3flflbbls of cement on location which equates to 180°I° excess if the entire batch needs to be pumped. The samples last year reported high levels of clay and very low % of gravel, thus helping to keep the permafrost better in gauge. 4. 4306 psi at 8427' tvd is given as the maximum expected bottomhole pressure in "Operational Considerations - Pressures" with 3379 psi given as the calculated maximum anticipated surface pressure (HASP). In block 17 of the 401, 3379 psi is given as the maximum downhole pressure and 2116 psi is given as the HASP. Would you reconcile these pressures? In the pressure calculations and drilling risk section, 2116 psi is given as the resulting surface pressure based on fracturing the surface casing shoe. While considering the possibility of shoe fracture is prudent, the pressure possible neglecting fracture is what should be listed in block 17. ,_,.,_~, This has been updated to 4306 and 3379 on the 401 5. In "Operational Considerations - BOP System and BOPS Testing" 2116 psi is also listed. This value should be reconciled as well. ~--~ This has been changed to 3379 psi 6. There are some differences in the connection types listed on the 401 versus the time curve (liner in particular) versus the drilling procedure (liner, step 23) versus the "Casing Properties and Design" sheet. Please reconcile. ~--? The 401 has been changed to STL connection 7. Obtaining a waiver to the LOT after drilling out of the 7" casing is mentioned in step 16. This waiver should be requested as soon as practical so that it can be evaluated along with the permit application. --~ The letter has been generated and will be sent taday 8. Is there a possibility that the 5" liner will not be set if drilling/logging information does not prove encouraging? Due to ou:r remote locat:Lon and having the I.:iner on l.ocat_i.on, .i..t :i.s i~.:zghl.y L.:i_k.e:1.y we w:i:]_1 run it. The cost cf rno~j:i.ng :i.t back :i.s ve:r..y substa.:nt:ial. '-"~ Eve:c~ .:i..f t<ze :Logs are not as good as expected, i.t keeps testing a.s an option fo:r the :next year. Thanks in advance for your reply Tom Maunder, PE AOGCC Call or message with any questions. 2 of 2 12/7/2006 8:10 AM • FEX. L. P. December 6, 2006 Mr. John Norman, Chair Alaska Oil and Gas Canservatian Commission 333 Nest 7~' Avenue, Suite t 00 Anchorage, AK 99501 RE: Request for FIT waiver: FEX L.P. Amaguq #2 Dear Mr. Norman: r FEX L.P. 3601 C Street, Suite 370 Anchorage, Alaska 99503 TEL (907) 644-4429 FAX (907) 644-4892 Lrt~ V t4laska Oil ~ GaS Cans, CommISSI0t1 Anchara~e FEX L.P. is hereby requesting a waiver to the FIT/Leak Off Test requirements of regulation ZO AAC 25.030(f}, as allowed per regulation 20 AAC 25.030(g), for the 7" intermediate casing shoe in the well named Amaguq #2, as noted within the APD previously submitted and currently under review by the AOGCC. This FIT waiver request is due to the fact that the 7" intermediate casing string is designed to mitigate time sensitive shale stability concerns prior to drilling into the primary objective; thereby ensuring that we have adequate time to completely evaluate the primary objective. The 7" casing string is not required for anticipated welIbore pressures or well control, only to secure the time sensitive shale that is directly on top of this objective. Conducting a pressure test on this 7" casing shoe will have a negative impact on our primary target, and will be detrimental to the wells evaluation needs. The AOGCC is requested to keep confidential all information included in this request, as information in these documents is drawn from research and data proprietary to FEX L.P. Ifyou have any questions ar require additional information, please contact me at 907- 339-7614. Sincerely, Paul Mazzolini Operations itrtanager FEX L.P. a Delaware Limited Partnership with Registered Office c/o CT Corporation 1209 Orange Srreet, Wilmington, DB, 19801 STATE OF ALASKA A~ OIL AND GAS CONSERVATION CON/iSION PERMIT TO DRILL ~n nnr ~~ nn~ 1 a. Type of Work: 1 b. Current Well Class: Exploratory Q v Development Oil ^ 1 c. Specfy if well is proposed for: ADChOfB 8 Drill Q . Redrill ^ Stratigraphic Test ^ Service ^ Development Gas ^ Coalbed Methane ^ Gas Hydrates ^ Re-entry ^ Multiple Zone ^ Single Zone ^ Shale Gas ^ 2. Operator Name: 5. Bond: Blanket Q ~ Single Well ^ 11. Well Name and Number: FEX L.P. Bond No. SBGT736907 ' Amaguq #2 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3601 C Street, Suite 370 Anchorage AK 99503 MD: 8427 • TVD: 8427 4a. Location of Well (Governmental Section): 7. Property Designation: Wildcat Surface: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM AA-085484 i Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM LAS 25 Total Depth: 9. Acres in Pro erty: 7; 14. Distance to Nearest 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM 1342 Pr a :i . o• 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevati 15. Distance to Nearest Well Surface: x-279459.51 y_ 5997095.6 Zor 5 (Height a GL): 74.6 feet Within Pool: 16 miles 16. Deviated wells: Kickoff depth: feet 17. M mum Antidpated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: degrees D Whole: 3379 Surface: 2116 18. Casing Program: Spedfications To p -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Len MD TVD MD TVD (induding stage data) 20" 16" 65# H-40 BTC 0' 0' 80' 80' ~ Permafrost cement to surface 12-1/4" 9-5/8" 40# L-80 BTC 2300 0' 0' 2300 2300 197 sx Permafrost Lead, 201 sx 8-1/2" 7" 26# L-80 BTC ~ 214' 0' 0' 8214' 8214' 2 Stg (154 sx/186 sx) Class G ce 6 1/8" 5" 18# L-80 TC- 295 8132 8132 8427 8427 37 sx Premuim Class G 19. PRESENT WELL C ION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Len Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production 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 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Paul Mazzolini Title Operations Manager Signature ~~„ ~ ~ Phone 907 339 7614 Date Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: ~^~~ 50- ~,7 - Zt~d/'7- UCj Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for; test, or produce coalbed methane, gas hydrates, or gas contained in shales: [~ Other: Samples req'd: Yes [.~ No ^ Mud log req'd: Yes [~ No ^ H2S measures: Yes [~No ^ Directional svy req'd: Yes ^ No [] ~''_ ~I~t~iK~.'~'ti-x•.'ft.L~"V6~ K~Gfrirt,rl•~ !!•3b~s APPROVED BY THE COMMISSION DATE: ,COMMISSIONER Form 10-401 Revised 12/2005 ~ ~ f CIA L ~~~~~~~~ NOV 2 2 2006 Alaska dii & Gas Cans. Commission x Submit in D licate .~~~~~- • • E~Ei1d~~ NOV 2 2 2006 Alaska Oii & Gas Cons. Cammission Anchorage FEX L.P. Application for Permit to Drill Amaguq #2 NW NPRA November 2006 • • November 22, 2006 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7a` Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill: FEX L.P. Amaguq #2 Dear Mr. Norman: FEX L.P. hereby applies for a Permit to Drill an onshore exploratory well in the NW NPRA area of the North Slope. The well, called the Amaguq #2, will be located approximately 38 miles ENE of the village of Atqasuk. FEX L.P. plans to spud the Amaguq #2 approximately January 21, 2066: 20~7~ Ice road/pad construction equipment has been mobilized via barge to the existing Cape Simpson staging area for this purpose. Upon receipt of all necessary permits and approvals (including tundra travel authorization), the ice road equipment will be mobilized from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) connecting the runway to the well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Doyon Arctic Wolf from ConocoPhilips 2P location, Deadhorse and Cape Simpson to the wellsite, drill the well to TD and test if applicable. At the completion of the drilling program, the drilling rig will be demobilized to Cape Simpson via approved tundra travel equipment. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) -1 copy 2. Form 10-401 Application for Permit to Drill - 2 copies 3. Fee of $100.00 payable to the State of Alaska 4. Well Prognosis and discussion of operational considerations 5. Location Plat and Drill Pad Layouts 6. Days vs. Depth Drilling Curve 7. Drilling Procedure 8. Wellbore and Wellhead Schematics 9. Pressure information including pore pressure, mud weight and fracture gradient curves, offset well mud weight curves, maximum anticipated surface pressure calculations, FIT and LOT procedures, and casing properties and design factors. 10. Diverter, BOP and Choke manifold schematics 11. Cement Program 12. Drilling Fluid Program • • Mr. John Norman Page 2 As part of this application, FEX L.P. also requests approval for the annular disposal of drilling wastes as discussed in the attachments. Form 10-103RD will be completed and submitted at the time the required well information becomes available, if necessary. FEX requests a leak off/formation integrity test waiver on the intermediate casing shoe. This casing string is designed for shale stability and is not required for pressure or well control. Conducting a pressure test will have a negative impact on our primary target and is detrimental to the well design. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to FEX L.P. For your information, this permit request is being simultaneously submitted to the U.S. Bureau of Land Management. If you have any questions or require additional information, please contact me at 907- 339-7614. Sincerely, r"~.-e riles- FEX L.P. Paul Mazzolini Operations Manager SV • FEX L.P. Amaguq #2 Overview and Timetable L~ FEX L.P. plans to drill an exploratory well, Amaguq #2, in the NW NPRA this winter. Amaguq #2 will be located approximately 38 miles east northeast of Atqasuk. The well will be drilled from a temporary ice pad with spudding estimated to occur approximately January 21, 2007. The well is planned as a vertical hole. The well will be accessible via aircraft to one of two potential ice runway locations, then via ice road across the frozen tundra and via tundra travel vehicles from the Meltwater 2P Pad. A map showing the details of the runway locations, ice road route, and tundra travel route as well as the drilling location are enclosed in this application. Ice road and pad construction will begin as soon as the necessary permits and approvals are available and the weather conditions allow. Ice road/pad construction equipment has been pre-mobilized via barge to the existing Cape Simpson staging area for this purpose. It is planned that the ice road equipment will be mobilized upon tundra travel opening from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) from the runway to any additional well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Doyon's ArcticWolf rig loads from Meltwater 2P and Cape Simpson to the wellsite. 'The rig will be supported with personnel and supplies flown into the ice runway and transported to the wellsite via ice road. Some heavy supplies and equipment may be brought overland via approved tundra travel equipment. Well testing may be performed. Current plans are to plug and abandon the well prior to the end of the 2006/2007 winter drilling season; however, the well maybe temporarily suspended and secured if well evaluation cannot be completed prior to the closing of tundra travel in the spring of 2007. If the well proved to be a dry hole, it will be plugged and abandoned prior to the rig being released from the wellsite. If the well is to be tested, it will be completed, and tested with the rig on the well after a testing tree is installed. If the well test is promising, the well may suspended until a following winter season. If there is insufficient time for testing, the well will be suspended and tested during a subsequent winter season. In either case, if the well test is discouraging, the well will be plugged and abandoned at the conclusion of testing. • • Operational Considerations Permafrost Based on offset wells and seismic data, the permafrost is assumed to be present from the surface to approximately 1100'. While drilling through the permafrost there is a slight chance of hydrates and shallow gas pockets. These risks will be mitigated by weighting . the mud to 10 ppg and minimizing circulating time to keep hole in gauge. The permafrost is not expected to present any drilling difficulties as neither thawing nor gas ~ hydrate problems were encountered in any of the offset wells. Surface Casing Shoe Depth The 2300' TVD setting depth for the 9-5/8" surface casing is located in the Nanushuk formation. The casing shoe will be set in competent shale within the Nanushuk in order to yield a strong shoe test, yet leave some of the sands in the middle Torok / Nanushuk exposed between the casing shoe and the Lower Torok for later annular disposal of waste drilling fluids. Lost Circulation and Slou in S Some of the wells in this general region encountered sloughing shales below the HRZ and lost circulation in and near their target horizons. The Amaguq #2 casing, evaluation, operating parameters, and mud programs have been designed to take these potential problems into account. The preferred well design for this well is a 7" casing string to be set at 8272 ft to cover off the problem shales then drill to TD and seta 5" liner. When TD is reached, the target interval(s) will be evaluated as an open hole, and if conditions are favorable, cased with a production liner. Pressures Anticipated pore pressures are derived primarily from the histories of offsetting wells in conjunction with a pore pressure analysis completed using seismic velocities. As shown on the attached pore pressure plot and maximum anticipated surface pressure (MASP) calculations, the highest expected pressure is at 8427' feet and is 4306 psi (9.82 ppg EMW) and will result in a maximum pressure at the surface, with a full column of gas, of 3379 psi (see included calculations). A 5,000 psi WP BOP and wellhead system will therefore be used on this well. Abnormally pressured shallow gas is not anticipated. The pore pressure prediction section of this application contains an evaluation of the risk of drilling high pressure zones as potentially recognized after seismic processing. Drilling Within Annular Blowout Preventer Limitations As shown in the included pore pressure prediction study, the highest pressure expected above the surface casing setting depth (7.71 ppg equivalent mud weight at 2300' TVD less a 0.11 psi/ft gas gradient) is 922 psi; which is within the 2,000 psi working pressure rating of the diverter. Below the surface casing, BOPs will be used in lieu of a diverter. Again, the MASP calculations show that all the anticipated surface pressures are well below the 5,000 psi working pressure rating of the annular preventer. • • BOP System and BOPE Testing The BOP system of Doyon ArcticWalf is rated at 5,000 psi working pressure and is described in the BOPS section of this application. Since the calculated maximum anticipated working pressure (at the surface) in this well is 3379 psi, it is planned to routinely test ail BOPE to 100% of its rated working pressure (~ 5,000 psi) (except the annular BOP which will be tested to 50% of its rated working pressure (2500 psi) .The BOP system will be tested initially (before spudding the well} and weekly thereafter to a low pressure of 200 psi and a high pressure of 5,000 psi (100% of rated working pressure). Well Deviation The Amaguq #2 will be drilled as a vertical hole. Directional control will be monitored via MWD in all hole sections. Depending on the outcome of the target horizon penetration, one or more wellbore directional sidetrack may take place. H2S None of the offsetting wells encountered measurable amounts of HZS in the intervals to be drilled, and it is not expect that drilling the Amaguq #Z well will encounter measurable amounts of H2S. However, the drilling rig will be wired with operating sensors, enhanced by additional sensors ties into the mud logging system, to continuously monitor for the presence of H2S. Research of fresh water in shallow formations A review of the water salinities was completed on Aklaq #2 between 2500' and 4500' to determine the possibility of fresh water aquifers. In this interval the formations are mostly shale with no water bearing sands The induction neutron/density wireline logs were examined and determined sands in Aklaq #2 at 2100ft, 2194ft and 2244ft have Rwa's of 0.789 at 70degF which results in a water salinity of approximately 7254ppm. Given. that salinities usually increase with depth we would not expect to encounter sands with salinities lower than this below our planned casing shoe at around 2500ft. The research concluded that the likelihood of any water with salinity lower than 3000 ppm in our drilling horizons was highly unlikely. Drilling Waste Handling Waste drilling mud from the well will be pumped into subsurface formations at approximately 3200' TVD via the 9-5/8" surface casing by 7" intermediate casing annulus. Cuttings will be hauled to an approved disposal facility for processing and disposal. ~ • BOP System and BOPE Testing The BOP system of Doyon ArcticWolf is rated at 5,000 psi working pressure and is described in the BOPE section of this application. Since the calculated maximum anticipated working pressure (at the surface) in this well is 2116 psi, it is planned to routinely test all BOPE to 100% of its rated working pressure (~ 5,000 psi) (except e annular BOP which will be tested to 50% of its rated working pressure (2500 ps' .The BOP system will be tested initially (before spudding the well) and weekly ther fter to a low pressure of 200 psi and a high pressure of 5,000 psi (100% of rated wor ng pressure). Well Deviation The Amaguq #2 will be drilled as a vertical hole. Directional via MWD in all hole sections. Depending on the outcome of the target horizon directional sidetrack may take place. H2S None of the offsetting wells encountered ~ be drilled, and it is not expect that drilling amounts of H2S. However, the drilling ri; enhanced by additional sensors ties into for the presence of H2S. ' ~} Research of fresh water in shallow f at ~a` will be monitored or more wellbore - e amounts of H2S in the intervals to aguq #2 well will encounter measurable be wired with operating sensors, l logging system, to continuously monitor A review of the water salinities as completed on Aklaq #2 between 2500' and 4500' to determine the possibility of fr sh water aquifers. In this interval the formations are mostly shale with no water Baring sands The induction neutron/density wireline logs were examined and det fined sands in Aklaq #2 at 2100ft, 2194ft and 2244ft have Rwa's of 0.789 at 70de which results in a water salinity of approximately 7250ppm. '' Given that salinities ually increase with depth we would not expect to encounter sands with salinities low than this below our planned casing shoe at around 2500ft. The research conclud d that the likelihood of any water with salinity lower than 3000 ppm in our drilling ho 'zons was highly unlikely. Waste rifling mud from the well will be pumped into subsurface formations at appr ximately 3200' TVD via the 9-5/8" surface casing by 7" intermediate casing ulus. Cuttings will be hauled to an approved disposal facility for processing and • • Prior to on-site disposal or hauling, the waste drilling mud will be temporarily stored within a bermed storage cell in heated tanks; while the drill cuttings will be temporarily stored in bermed storage areas on the ice pad. Diagrams are included with this application that shows the ice pad layouts with the proposed location of the storage cells. Additional Information Additional information on operations such as formation tops, logging, mud logging, etc. can be found on the attached Amaguq #2 Well Prognosis. Certified Location Plat An as-built location plat, certified by a Registered Land Surveyor, will be submitted shortly after construction of the drilling location is completed and the conductor pipe is ~ set. Contacts The contacts within FEX L.P. for information are: Reporting and Technical Information: Geological Data and Logs: Paul Mazzolini 907-339-7614 Tim Flynn 907-339-6271 Scott Volk 907-339-6309 Sue Love 403-693-2584 • • g A ~ ~~ 9 ,Js` ~~~ • N Q Z w ~ ~ 4v, _~v ~ O ~ m~ ~m~ IE gg ~ l ~ ~;~ _ ~ W V W ~ ~ ~~~ ~~ O ~ ~ ~ ~ C'J ~~ ~~m~ a ~.~ ~ z ~ O ~ ~ ~ I' ~ ~ O j W n i b < W m _ C ~ ~. ~ '~ ' .~ ~ ~ o N o ; ~ ~ ~Sa ~mH n. 111 ~ ~ ~ ~ ~ ~ ~ ~~ 1 ` LL r^ ~ W yp~ _ - . ~ V N 1 ~ p~~ i I~ ~ N ~ Z Z b y,. ~ W~ ~ 000 ' ~ ti N 3 ~ ~ J O ~~~~~~ I^ ~• ~ O ~ a w I-- -; .~' F ' -a- Z U b ~ ~-b ~ .~./ ~ its ^}~ , ~ ~~, ~ w < o _ ~ ~ w `~ ~~,: ~ ~ t, - ~ • ~, ~y U' ~Aj~', a _. s~ ' a O _ry_'__ L e a (j ~/; Z lti\ V 1i ~ ~ 1_ ~ 1 C~. V O I a t i ~ ,~ ~~ i - r w~ m m v~ o ;i=p F TA 7 L A , • ~ ~ Y},- m /f/ ~ a ~1 ~ f N ~ P x~c ~'~~y^' ~~ ',~ '. W.L.Q.. y~ IgIA, Q O ~ t~t~~ N/9SP~y ¢ ~p ! ^ 1 Xi i~ 1 ~ 25 b J N j C 'ate ~ ~ ~ ~ w ~ h ~C0" ~` ~` S ~~ ~~ x ~ w. [L c .. 4 H O{ ~, ~~ ~~~ ~,•; I , J \ ~I ax " \~t,~ ,, ~~---~ it D 0 1I ( • y C f0 ,.~ ~ ~ .. ~ fl '4 3 ~ 0 ~_ ~ Y ~~ ~ Y ~ ~ ___ I q ~ $ ~ S Ji N Q mm ~ ~ ~' a~ ~^ ~~ ~ I ~ y z m m a _ r __ ~ -- 3 ~ ~` -- zf "~--'--~--- , - ~ ,~ ~ . r W A -- v ~~ y~... i ~ ~ _ q • , Q ~ Q ~ .~ ._ A __ .~, ~~ i _ s~;~ ~~ L~ ~ Gar - ~ t i ' t III ~~ X 4 C T • • Projectbn. UTN Zone 5 (m1 NAO 27. Umigt Meridignlnharetl (2002) O6~ basema0 provided by the Bureau of Land Management (BLM). Ice Roads-Permitted 2005-06 ~~~~ Snow-Packed Roads-Permitted 2005-06 ~ 8 ~ Ice Runways-Permitted 2005-06 woo Ice Roads-Proposed 2006-07 R o< a~w Snow-Packed Roads-Proposed 2006-07 --~ Ice Runway-Proposed 2006-07 Drill Sites-Permitted 2005-06 • Drill Site-Permitted 2005-06 - (Drilled ~. Drill Sites-Added 2006-07 Q FEX lease Area CONFIDENTAL FEX L.P. WINTER ACCESS ROUTES NORTHN/EST NPR-A EXPLORATION DRILLING PROGRAM r~ ~.__,~ FEX L.P. Amaguq #2 Well Prognosis Well Name: Amaguq #2 Surface Location: 1875' FWL, 2522' FSL, Sec. 18, T12 N, R15W, UM Target Location: 1875' FWL, 2522' FSL, Sec. 18, T12 N, R15W, UM Bottomhole Location: 1875' FWL, 2522' FSL, Sec. 18, T12N, R15W, UM Elevation: Ground Level 74' AMSL Drill Floor (DF) 18' 9" AGL Kelly bushing (KB) 92' 9" AMSL Planned TD: 8427 `TVD Drilled Depth Error Bar TOpS TVD ft +/- ft TVD Base Permafrost 1118 200 Nanushuk group 1268 200 _~ Svc ~ ~S< Nanushuk topset sst. 2446 200 J Torok 2830 200 Torok sand 1 4183 150 H RZ 7004 150 LCU (Lower Cret. Unconformity) 7182 150 Kuparuk Sandstone Mbr."* 7183 150 Uppper Kingak {Miluveach) " " * 7220 ~ 150 ~,~~~~,~: ~-~ CS~ 0 Sandstone Alpine 8272 15 BCU (Base Cret.Unconformity) 8328 150 Kingak Fm. 8328 250 TD Jurassic Kingak Fm. 8427. 250 "Primary Objective 'Secondary • Depth errors reflect uncertainty associated with the depth conversion of the seismic interpretation, plus uncertainty in the seismic picks. • Cores: Planned Logs 60' core planned in the Alpine Sands • . ~-~`~ ~~~ . ~.~- Surface Hole: 80' to 2300' (+/- 200') ~ LWD only: Gamma Ray / Resistivity Intermediate Hole: 2300' to 8272'(+/- 200') LWD: Gamma Ray/Resistivity/Neutron/Density/Sonic/Pressure while Drilling Production Hole: 8272' to 8427'(+/- 200') LWD: Gamma Ray/Resistivity/Neutron/Denisty/Sonic/Pressure while Drilling Production Hole Wireline IoE~ing Description De th Lo Surface - TD VSP -only the recording tools will be provided by Baker. Veritas will (TD --8427' TVD) rovide the vibroseis truck. BSC - TD STAR -multi arm di meter/borehole ima er BSC - TD XMAC -cross dipole sonic with shear , TD -8427' TVD BSC - TD CDR-C -cont. directional survey w/GPIT combo TD --8427' TVD BSC - TD Density/Neutron, Spectral GR, Resistivity TD ~842T TVD BSC - TD RCI -for pressure and samples in primary and secondary zones, must have multi le sam le chambers and um out ca abilit BSC - TD MREX -for effective porosity analysis TD -8427' TVD BSC - TD Rotary Sidewall Cores (RCOR) -primarily over main target interval (TD -8427' TVD) and secondar tar et zones _-2428' - 8309' Mud Logging: 'Mud Logging will be in operation from the base of the conductor casing to well TD. Services will include sample collection; plotting of ROP, lithology, and drilling parameters; show description; gas analysis of cuttings; and gas chromatography. Samples will be collected every 30' from the base of surface casing to top of HRZ, and every 10' below the HRZ. The wellsite Geologist will adjust the interval or sampling rates as required. -~~ 500 ~ ' \ _-~ ~ ~•-•''~ ororY '\ Prod~o<s TemPSloro9e\ Mud Wo 50 XlpO \ fm ' wd\ cenl~eose ~ ne se ° e \ The ,Neat Nosh \e \ N ~' from , from ~ • ~ _ 'pocks piverler U`nO 20f ,ll \\ PrevolFng Wind \. 1 \ '\ \ ~ ~ 1 \ \ \ g \~ 1 ~ / ~1 \ \ N ~\ ~ t'•~) \ .,~ ~ ~ ~ ,~.. \ U .. 'a \ \ y 152' 5 1 ; \ \ Y ~~, 1 .\\ c y t 1 \ N ~ ~, \ \ ~ ~ .~ \ U C. i Y ' ' ' ~ i ~\ V l i \ S - l , , , 1\ ~~ ~~I .~ ~ ,.,. ~OYON DRILLING ~.~~~ DRILLING LTD. ARCTIC WOLF MOUSEHOLE DRILL 12' DEEP AT 3° TO WELL DEPTHS BASED ON A 44' RATHOLE & 26' MOUSEHOLE 2ATHOLE BRILL 31' DEEP AT 9° TO WELL 1 ~ 2p° FEX Amaguq 2 Days vs. Depth Curve • Days (d) 0 5 10 15 20 25 30 35 0 ----------- -__ -----_-- - - -- -- _. - ---- ------ - - Preset 16" 65# H40 BTC conductor set to 80' Cemented with Permafrost Type C cement 1000 { _ Ri u and test diverter notif re ulato a encies 48 hours rior to test. Drill 12-1/4" hole with 6%KCL/clay seal to 2300', drill vertical hole using MWD to collect surveys, and LW D to collect relevant geological data. Find good clean shale to set shoe 2000 - -- Run and cement 9-5/8" 40# L80 BTC casing. Rig up and test BOP to 5000psi 2500psi annular, Pressure test casing to 2500psi, perform LOT up to 16 ppg 3000 { 4000 r .. a m ~ 5000 6000 7000 rill 8-1/2" hole with 6%KCL/clay seal to 7220' (Top of Miluveach). Drill slick with WD for surveys and LWD to collect relevant geological data. Run at bit gamma tc id Miluveach top. \/ I lop to wire line log and collect rotary side wall cores. - --r- 8000 ~-Wire line log and run RCI on drill pipe. Abandon or suspend I well by running and cementing a 5" 17.83# ST-L flush joint BTCM liner. Rig down and Move 9000 40 Run and cement 7" 26# L80 BTC-Mod to bottom. Pressure test - casing to 2500 psi. Do not run a FIT (get waiver). Drill out shoe find Alpine top and trip for 6-1/8" fullhole core Drill 6-1 /8 "hole with 6%KCUclay seal to TD at +/- - ~ 8427' s • Amaguq #2 Drilling Procedure 1. Use pre set rig to dri1124" hole to +/- 80', set 16", 64#, H-40 BTC conductor casing. Pump sufficient cement to bring cement returns to surface. 2. Move in and rig up Doyon Arctic Wolf. 3. Attach landing ring to conductor. Install diverter and function test. Notify regulatory agencies 48 hours prior to test. 4. Drill 12-1/4" hole to the surface casing point of +/- 2300' MD/TVD find a good shale section to set shoe. Run and utilize MWD and LWD tools throughout this hole section to monitor hole angle and to ensure the hole remains vertical, as well as collect logging ~ data. 5. Condition hole for casing. POOH. ~/ 6. Run and cement 9-5/8", 40#, L-80 BTC casing to surface. Surface casing is to be cemented with an inner-string job. Employ a lightweight permafrost cement lead slurry followed by a high strength Class G tail slurry. Pump adequate excess cement to ensure cement reaches the surface. 7. Nipple down diverter and nipple up BOPE. Test BOPS. Notify regulatory agencies 48 hours prior to test. 8. Make up an 8-1/2" drilling BHA and RIH to the top of the 9-5/8" float equipment. Pressure test the casing to 2,500 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 9. Drill the float equipment and 20' of new hole. Perform a LOT (or FIT if the gradient exceeds 16 ppg EMW). Record the results and fax to the Anchorage office. 10. Drill an 8-1/2" straight hole to the base of the Kuparuk @+/- 7200' MD/TVD. Use LWD f logging tools to help find the bottom of the Kuparuk. 11. Condition hole to Log set a concentrated pill of bridging material on bottom as per mud program and wireline log. Side wall cores maybe required as per site geologist's request. 12. The Miluveach shale is brittle with fissility and natural fractures. Build up mud system to incorporated bridging materials to keep mud from getting into the fractures as per mud program. Make up slick BHA with at bit Gama to drill the Miluveach. Drill the Miluveach with extreme caution pa@g attention to the on bottom pressure and not swabbing or surging the sensitive shale. Drill ahead to the top of the Alpine sand, get as close to the Alpine top as possible. Geology will use gama signatures in the Miluveach ~ to help find the top of the Alpine @ +/- 8272' TVD/MD. (Note that the Miluveach is time sensitive, 4 day shelf life, and sensitive to changes in pressure). Care should be taken to drill and case this section quickly but also with very sensitive drilling practices and proper hole cleaning hydraulics. 13. Condition hole for casing. POOH. 14. Insert torque rings and make up reaming shoe to run and cement 7", 26#, L-80 BTC- Mod casing. Pay close attention to trip and casing running speeds as to not swab or surge the hole. Use Tesco running and circulating tool to ream and circulate the casing as necessary. If hydrocarbons are identified in the upper zones, pump cement 500' and over the hydrocarbon zones. If no hydrocarbon zones are identified, a contingency single ` stage cement job will be implemented covering a minimum of 1000' above the intermediate shoe. This will be confirmed once log data is available. • ~ 15. TOC should not be allowed to approach the 9-5/8" casing shoe because the 7"x 9-5/8" annulus will be used for annular injection of mud. 16. Make up a 6 1/8" drilling BHA and RIH to top of 7" float equipment. Pressure test 7" casing to 2,500 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. It is our request to get a formation integrity test waiver for the intermediate string. The intermediate string is not set as a pressure control string but only to get sensitive shale behind casing. A formation integrity test runs a risk of damaging our primary production zone. 17. Drill float equipment down to the top of the Alpine sand and core point at +/- 8272' MD/TVD and POOH for coring equipment. 18. Make up 6 1/8" coring assembly and RIH to core 60' of the Alpine Sand. POOH with core. 19. Make up, TIH and dri116 1/8" straight hole to TD in the Kingak formation at +/- 8427' MD/TVD. Run LWD logging tools in the drill string as required for formation data gathering and to help determine TD in the Kingak Shale. 20. Condition the hole for wireline logging. POOH. 21. Rig up wireline. Run wireline formation evaluation logs per logging program. Rig down wireline. A RCI tool is planned to be run on drill pipe, samples will betaken as per geology's request. 22. RIH with 6 1/8" BHA and condition hole for casing. POOH 23. Run and cement 5", 18#, L-80 STL. Pump sufficient cement to bring the cement 100' above liner top.(liner overlap must be a minimum of 100') See liner running procedures for details. 24. The plan is to abandon or suspend the well per applicable regulations, depending on results. ~EX - NPRA Exploration Amaguq #2 Wellbore Schematic CONFIDENTIAL ~ .~-- 24" Hole ~ 16" 65# Conductor @ +/-80' MD /TVD ~ X12-1/4" Hole j a a a ~~ 9-5/8" Top of Tail cement @ ~~ ~ ~ _ a +/-1700' MD /TVD .: 9-5/8" 40# L-80 BTC Casing @ +/-2300' MD /TVD i- i i ~f 1 j a i ~~ ~ ~~ a 9 ,~ 8-'/Z" Hole 7" Cement top of stage 2 cement job 4500' to be confirmed by logs '~* 7" Cement top of stage 1 cement job 7200' ** S" Liner Cement top 8072' ' 5" Liner top 8172' ~ ~ ~ 7" 26# L-80 BTC-Mod Casing ,; i i ; i @ +/- 8272' MD /TVD i< i i i i> ~ i' ~ i i ': i i> !~--- 6-1/8" Hole i ~ is ~ i l I ~ I 1; ~ I' I'- I S" 18# L-80 STL Liner Top Set @ +/- 8427' NID /TVD TD @ +/- 8427' MD /TVD ** See line #14 of drilling procedure for contingency single stage cement job ~ANOINL J~IR~ I LAwINC J.,,N~ s.oo .,38;.0 mm, ,y!~. 1 I/O-5000 IR-JSI 1342.9 mm; % CTIS CONNEC TOR I I ~ r O i J I/B-5000 M00 120 Ov j I ± 3 I/O-5000 M00 120 GV I t0~095imm1 00.659' O i O I 09.50' 10219.9 mm1 IO ~ 102Je.2 mm1 0121Y 10 ]91.9 mnu I i i'CASIxLR xANLER q 1 0 OOL 9%w'CaS.NL xpuLEq I 1204],9Tmm1 O I ! O I IOOSTi-0000 NO q i00'- PIpOSi I-0000 _ _ _ _ _ - _- _.~. ._- _ _ - _ _ O _.~_ -_ _ _ _ _ _ .+.._ _._ I ~ _ ~_ i 9 1 r10Z0i4.6 mm)) i -- -- - - -- - 1 I/0-5000 sOJUSipBIE CNOKE i 0 as 4].];' I a va-soot Moo ~zo cv 1128.11'T1 9 `+~-u~J 1965.20Omml 01.14' 10101.3 mm ] I/8-5000 NOp 120 OV I ~- ~ ~` - - TALL JOWL 9.50' 1241.] mm1 ] I/0-5000 IR-]51 0 0 e.6z } nso• t21B.9 mm, m) ~TESi PORT 1342.9 m 10 LOCKpOwN SCREwS SCSSV E%li _-_- - - - n-5000 IR%-541 I 26.49'm) I t6 TI.6 m 42.4 tl9.800' I I lmzz : m OIL.]6- ._- _ _ _ _ _ _ -_ 010.] m t026J.I mm1 ~ 10261.9 mm1 ®' E [LM01Nei10Rx lowAEN BOpOwL i IJ.J 1' OnL 90p: PROTECTOR PAC%O~P uIwL1NL ~ 1330.0 mmi 6 00. 95(' CASING 40-260-Si0 (1461,6 mmJ 6 2Ya-5000 NOOEL 120 LV 0-209-003 { ~iEST PORT - - --- - _ - - -' IO I.OCKBLRN SCREwS 4 II-5000 IR-541 010.31 22.15• 5 10262 91 TT.e mm1 ! ~ TooL Jo1xT~ __ ; - - - _ _ _ - -_ Om6er - - Itlzi4. mm 9.13' ®' 1211.9 mm1 TEST PORT ~ 2%-5000 MOpEI 20 GV 6.00• ~]m 12.0' I.00' 1152 < mml ~ ly M 1431.8 mml 2 Iy DOi.6 m ] I}.5 i' -{ 1446.) I 4.00' L06.3B' II m1 0 2.0 mm1 OIL.]I' 010.8 10261.9 mm1 10215.34mm1 16'00 CASInL SHORT BOWL PROTECTOR COMBIxpilOn UPPER BOwI BR r cwsmc r6si Pwc Axp 9Sp'00 CASIxL 48-200-402 BOwL PROTECTgV RUNNING 1001 40-261-503 rGp cpsxc Sy'op ruelxc 11-5000 THROUGH BORE SYSTEM 16 X 9 5/8 X 7 X 3 1/2 z2 1318.1 1mm) 014.25 ~ 29.0 IJ6I.95mm) 164I.35mm1 ITEM PART NJMBER DESCRIPTION eNOINL RING P 116068 LANDING RING P124800-0005 2 PIT60T0 CSG HANGER 3 PI 76063 CdSINL HEdO dSSEMOLY PIi6015 TBG HD ASSY 5 P12 ]2T 1-0002 CSG HGR ASST '; 6 2-150-0;6 PdC%OFF ASSY i P116120 T8G HGR ASSY B P120192-0002 ADAPTER ASSY 9 90-120-566 GV 4SST .6 Cp51NL 10 25-051-J 94 TEE ASSY 01 vE0.*ER NEeO 02-690-117 ADAPTER ASST SE el6 % 2~-I/4 2K w/ONE 2'~P OU -I.ET ¢-G9G-Ie4 9~ ov HcR •-~ =1 zss*e-Loa P.I eJJe-opos DEO_ NIPPLc _ 12-093-.12 T C-2~ NGR - %s s~ Gx T % 3/: O O i O I, O I J L' Amaguq #2 Pressure Calculations and Drilling Risks Maximum Anticipated Surface Pressure: The maximum anticipated surface pressure (MASP) for this well will be the lesser of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the last casing shoe (less a full gas column to the surface). Based on the attached study Offset well study and a "Pre-Drill Seismic Pore Pressure Prediction:. The MASP will be calculated using a pressure gradient derived from historical and seismic pore pressure data. From the historical and seismic pore pressure prediction, (See Pore Pressure Study section) the highest formation pressure expected in the final hole section is 3379 psi at a depth of 8427 TVD (or .511 psi/ft). This line was derived using maximum predicted fracture gradient data for this area based on historical regional data and seismic interpretation. Utilizing this data, at the 7" casing shoe of 8272'TVD the maximum predicted fracture gradient is 1.03 psi/ft or 19.8 PPG EMW. Complete evacuation of the wellbore, except fora 0.11 psi/ft gas gradient, is assumed. Pore Drilling Fracture Pressure below Casing setting Gradient Gradient MASP BOPE Casin size De th Seismic Seismic Drillin Ratin 16" 80 ft TVD 1.03 si/ft .511 si/ft 32 si 2000 si 9-5/8" 2300 ft TVD 1.03 si/ft .511 si/ft 2116 si 5000 si 7" 8272 ft TVD 1.03 si/ft .511 si/ft 3379 si 5000 si MASP Calculations Where: MASP =Maximum Anticipated Surface Pressure FG =Facture Gradient at the casing seat in ppg FPPs =Formation pressure gradient at next casing seat derived from siesmic in ppg FPPo =Formation pressure gradient at next casing seat derived from Maximum offset pressure in Hunter A in ppg D = Depth of casing shoe in ft Dn =Depth of next casing shoe in ft 0.052 =Conversion factor from ppg to psi/ft 0.11 =Gas gradient in psi/ft iJ Drilling below 16" Conductor MASP (shoe fracture) _ [FG - 0.11 ] x D =[(.511)-0.11]x80ft = 32 psi Or MASP = [FPPs - 0.11 ] x Dn (formation pressure) _[(.511) - 0.11 ] x 2300 ft (from seismic) = 922 psi As shown in the included pore pressure prediction study and the above calculations, the highest pressure expected above the surface casing setting depth (7.71 ppg equivalent mud weight at 2300' TVD less a 0.11 psi/ft gas gradient) is 922 psi; which is within the 2,000 psi working pressure rating of the diverter. Drilling below 9 5/8" Surface MASP (9 5/8"shoe fracture) _ [FG - 0.11 ] x D _[(1.03) - 0.11] x 2300 ft = 2116 psi nES~FC~~~S s~E °~~~~~ Or ~~ ' " 1 MASP (7" shoe fracture) _ [FG - 0.11 ] x D _ [(1.03) - 0.11] x 8272 ft = 7610 psi ~ ~ v~o~ P®sS V\j `,So Or MASP = [FPPs) - 0.11] x Dn (formation pressure) _[(.511) - 0.11 ] x 8427 ft ~- (from seismic) = 3379 psi Therefore, MASP in the 6 1/8" hole section is 3379.0 psi and the 5,000 psi BOPE system to be used will be adequate. '~ Well Proximity Risk: i>~ }l The nearest wellbore to the planned wellbore of the Amaguq #2, is the East Topagoruk test well located approximately 15.9 miles northeast. Therefore, there are no nearby wellbore proximity risks. • ~ Drilling Area Risks: 12-1/4" Surface Hole - 9-5/8" Casing Interval EVENT RISK LEVEL Miti ation Broach of Conductor Low Monitor cellar continuousl durin drilling interval. Gas Hydrates Low If observed: control drill, reduce pump rates, reduce drilling fluid temperatures, additions of Lecithin. Build cold mud fors ud to minimize circ time. GraveUSand Sloughing to Moderate Increase mud weight/viscosity, pump high viscosity +/- 500' swee s. Monitor fill on connections. Hole Swabbing /Tight hole Moderate Circulate hole clean prior to trip. Proper hole fill on Trips utilizing trip sheets, pumping out of hole as needed. Perform routine short trips and practice good h draulics techni ues. Possible Thaw Bulb / Low Watch return viscosity for signs of thinning. Water Flow Increased mud wei ht/viscosit as needed. Lost Circulation Low Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and increase viscosity along with the of LCM material. 8-1/2" Intermediate Hole and 6-1/8" Production hole EVENT RISK LEVEL Miti anon Shale stability in the High If possible drill within time window of four days and interval below HRZ run casing. Use bridging agents to prevent invasion of mud into the natural fracturing. Once the fractures are sealed maintain mud wt. to hold back shale. Shale is very sensitive to swabbing and surging, control trip speeds and follow proper drilling practices while paying close attention to the on bottom pressure data. Pay close attention to hole cleaning and mud hydraulics. Massive shale sloughing may overload the hole and packoff annulus. See hydraulics program for recommended h draulics. Lost Circulation Moderate Monitor hole cleaning efficiency. Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and lower mud rheolo ,use LCM material. Differential Sticking Low Periodic wiper trips as needed for hole conditions. Do not leave pipe static for extended periods. Utilize low fluid loss mud and minimize wall cake thinckness. Abnormal Reservoir Low Follow programmed mud weights, monitor well, Pressure increasing mud weights as needed. Ensure adequate kick tolerance prior to drilling pay interval(s) and minimize the use of drill solids to weight up system.. FEX L.P. Amaguq #2 Casing Prooerties and Design Internal Collapse Tensile Strength Size Weight Grade Connect. Yield Resistance Joint .Body TVD in Ib/ft si si 10001bs ft 9-5/8 40 L-80 BTC 5750 3090 979 916 2300 7 26 L-80 BTC-Mod 7240 5410 667 604 8272 5 18 L-80 STL 10140 10500 457 422 8427 * T = Tensile design safety factors are calculated using pipe weight less buoyancy. B = Burst design safety factors are calculated using Maximum Anticipated Surface Pressure. C = Collapse design safety factors are calculated assuming complete evacuation of the casing. MD Design Safety Factors* T B C 2300 11.54 2.72 2.87 8272 3.38 3.42 1.32 8427 3.34 4.79 2.52 U • ~ Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Note that the terms used in these procedures are defined as follows: Formation Integrit Test (FITS: Formation is tested to apre-determined equivalent mud weight. Leak-Off Test (LOT): Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak off point. LOT Limit: 16 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak-offs. Open Hole LOTs (OH LOTs): Leak-off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak- off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to support estimated mud weight. Procedure for LOT/FIT: 1. Dri1120' of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. Pull back up into the shoe. 3. Close the BOP (ram or annular). 4. Pump down the drill stem at 1/ to % barrel per minute. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) versus drillpipe pressure until the appropriate surface pressure is achieved for the FIT at the shoe. 6. Shut down at the required surface pressure. Hold for a minimum of 10 minutes or until the pressure stabilizes. Record time versus pressure in one- minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. Please note that this well is planned for aLOT/FIT waiver for the intermediate casing. The intermediate casing is to be run only to control fractured shale from sloughing. It is not required for well control and therefore a FIT waiver is requested. An FIT is considered to be detrimental to the well design because of the casing layout and risk of formation damage. • ~ The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measure are required. Annular disposal pumping is planned on this well; the formation below the surface shoe y is to be taken to leak-off. This ensures that future disposal fluids can be pumped away without risk of damage to the surface shoe. If two attempts at establishing aleck-off at the shoe are unsuccessful (using 16.0 ppg EMW LOT Limit per above), then an open hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at apre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with a FIT. Since this project will require the use of annular disposal once an annulus is available, our plan is to perform a LOT at the surface casing shoe, and then perform an OH LOT after drilling through a perspective sand zone below the casing shoe. i • Pore Pressure Study A review of the public records of the existing wells drilled in the NPRA and scouting information gathered from other operators indicate that the formations to be drilled are normally pressured. Although not identified at the drill location, care will be taken in case of encountering shallow gas pockets or possible anomalous pressures below the base of the permafrost (approximately 1100' below MSL). This shallow pressure increase has been noted in the local well control and was drilled with mud weights ranging between 10 and 10.5 ppg. There is also a potential for slight over-pressure (10+ppg EMW) from the top of the HRZ shale until TD. An examination of the shallow seismic at the location and ~, show no observable bright anomalies that may indicate shallow gas or hydrates. Y" u. ~j 1, i c~ , Pressure Prediction Procedure Well Modeling - Ikpikpuk #1. S. Simpson #1 ~ r e.. r` e. l ~.at~ ~ ~ s ~l~ y ~ °~ 1) A local normal compaction trend line (NCTL) was calculated using gamma ray and sonic logs from the Ikpikpuk #1 and S. Simpson #1 wells. The compaction trend was calculated using asemi-log methodology and was consistent in both slope and intercept at each well. 2) The difference in interval transit times (ITT) recorded by the wireline sonic logs and the calculated by the downward projection of the NCTL was measured. These values are the travel time differences, ODT. 3) A second-order polynomial translation trend model was developed which translates 4~T to pore pressure gradients. This model was found to be consistent with other trend models in the area: PP = C2*~~T2 + C1 *40T + CO where: C2 = 2.57x 10~ C 1 =.119231 CO = 8.94231 4) Interval transit times (ITT) were derived from high-resolution 2D seismic velocities recorded at each well location and compared to the NCTL calculated from gamma ray and sonic logs. The slope of the seismic NCTL was found to be an approximate match for the average NCTL measured in the wells below 1400 ft. • • The seismic NCTLs did not match the NCTL measured in the well above approximately 1400 ft; this is most likely due to low fold in the shallow seismic data. Seismic fold was sufficient and seismic data quality was reliable for pressure prediction below 1400 ft. Figure 9 shows the average NCTL measured from the sonic logs (brown line) plotted against the calculated interval transit times derived from the seismic velocities (green line) at the Ikpikpuk #1 and S. Simpson #1 wells. 5) Pressure gradients were calculated for the Ikpikpuk #1 and S. Simpson #1 using the translation trend model (Step 3 above). The predicted pressures were compared to mud weights and DST test results and found to be reasonable in value (Figure 9). Application of Model at Proposed Well Location 1) A best-fit normal compaction trend line (NCTL) was estimated at the Amaguq #2 proposed well location using the available seismic data. The slope of the best-fit NCTL matched the slope of the average NCTL measured at the Ikpikpuk #1 and S. Simpson #1 wells; the intercepts were slightly but not significantly different. ~ This difference in intercept is frequently observed when comparing seismic velocity data vs sonic log data and is attributed to the difference in the way velocities are measured in seismic data (large horizontal component) vs sonic logs (primarily a vertical measure). Although the seismic velocity data above 1300 ft sstvd matched the NCTL trend, the 2D seismic data is relatively low-fold and has a high uncertainty associated with pressure prediction. 2) The translation trend model developed at the Ikpikpuk #1 and S. Simpson #1 wells was used to estimate pore pressure directly from the NCTL trends measured from seismic data at Amaguq #2 (Figure 9). In addition to the investigation of the surrounding wells, apre-drill 3D seismic pore pressure prediction at this location was performed. Seismic velocity data was used to predict pore pressures likely to be encountered in the Amaguq #2 well location. A local compaction trend and a local velocity to pressure gradient translation trend model were established using control from the Aklaq #2, (Figure 6), and Puviaq #1 wells (Figure 7). The local compaction trend and the translation trend model were applied to velocities obtained from the recently processed 2006 3D seismic data to predict pore and fracture pressures. This method of prediction was performed at the Aklaq #2 location and shown to be applicable. Seismic based pore pressure attributes were derived using a high density Amplitude-Orientated Kinematic `A-OK' velocity field. This technique uses automated AVO analysis as a residual velocity indicator to fine tune NMO corrections. The Amplitude-Orientated Kinematics, (A-OK), algorithm is based on a concept developed by Herbert Swan (2001). The predictions show no apparent shallow hazards or large pressure anomalies at the proposed Amaguq #2 well location, figures 6, 7 & 8. The accuracy of seismic geopressure analysis is dependent on the accuracy of the input seismic velocity field. The seismic velocities used for pressure prediction in this area were generated from interpretation of velocity semblance plots calculated from 2D seismic data. • • Discovery of inaccuracies in seismic derived core pressure below 6000' MD The following are three justifications to assume the pore pressure for the proposed drilled formations are normally pressured and do not follow the trends defined in the attached model for Amaguq #2. (Fig 3) Regional Empirical Data The closest wells drilled have accurate pressure data reported and are represented in the attached charts (Fig.l and Fig. 2). If we assumed the highest reported gradient from Puviaq #1, (.509 psi/ft) the following calculations can be made: MASP (Pore pressure) = 8427 TVD (.509 - .l 1) = 3362.37 PSI MASP (Formation breakdown) = 2300 TVD (1.01 - .11) = 2070.0 PSI The Maximum anticipated surface pressure (MASP) for Amaguq #2 will be the lesser of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the casing shoe (less a full gas column to the surface). Therefore, MASP in the 6 1/8" hole section is 3362 psi and the 5000 psi BOPE system to be used will be adequate. A second justification references a study that encompassed 24 wells drilled in the NP12A. (Fig 4) The data represents reported pressures for each well and the corresponding measured depth. The highest pressure reported in the study was a well drilled approximately 72 miles west of the proposed drill location and followed a pressure gradient of .624 psi/ft. If we use this gradient as a worst case scenario, the following calculation can be done: MASP (Pore pressure) = 8427 TVD (.624 - .11) = 4331 PSI MASP (Formation breakdown) = 2300 TVD (1.01 - .11) = 2070 PSI The Maximum anticipated surface pressure (MASP) for Amaguq #2 will be the lesser of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the casing shoe (less a full gas column to the surface). Therefore, MASP in the 6 1/8" hole section is 4331.48 psi and the 5000 psi BOPE system to be used will be adequate. ~ GMI Justification A third justification references a rock stability study that was completed in 2006 by GMI (Geo Mechanical International). GMI is an independent Geo-Mechanics consulting company specializing in pore pressure and rock stability studies in all parts of the world. The study incorporated 3 wells in the surrounding area (NP1tA) with particular attention on shale stability. Chris Ward, PH.D a director with GMI summarized the following inaccuracy with seismic derived pore pressure along with rationale to what is truly correct. • • The techniques assume any overpressure is generated by under compaction. For this to be so the sediments need to be continuously loaded (buried), usually in recent geological time. Most under compaction occurs in recent deltaic environments. From what I understand this part of the North Slope has been uplifted and has had a recent ice load melt, and therefore unloaded and under compaction would not apply. These techniques for estimating pore pressures in shales assume the shale properties are not changing and the response from the logs (sonic, resistivity, density) is from trapped porosity, i.e. under compacted. It is likely here that the shales below the HRZ differ significantly petrologically from the Torok shales above. Some of them are organic-rich which will affect the density, sonic and resistivity, in a way that looks like overpressure (porosity) but is really due to the organic fraction. More significantly for pore pressure calculations from sonic and resistivity, the lower shales are probably (micro-fractured which affects the petrophysical transport properties resulting in anomalously high calculated pore pressures. Wellbore stability evidence also points to a low pore pressure. A log response that looks like overpressure is seen in the HRZ/LCU at Puviaq but there were no breakouts observed in the image log or calipers. The well was drilled with a 9.Sppg mud weight and if the pore pressure was 16-18ppg it would have been drilled severely underbalanced. These are weak shales and we would have predicted catastrophic failure for a well drilled some 6-8ppg underbalanced. Also, the image logs and presence of lost circulation suggest pervasive natural fractures through these formations. If they are permeable enough to lose while drilling then will not be able to trap overpressure over any sort of geological time. Fracture Gradient Prediction Fracture gradients were calculated for the proposed Amaguq #2 location using the Eaton Methodology. Overburden pressure, calculated pore pressure gradient profiles, and Poisson's Ratio profiles are the inputs. The results are derived from the 3D seismic data and are shown in figures 2, 3 & 4. Conclusions 1) Given the local well control and seismic data, we predict there to be no apparent ~ shallow hazards at the proposed Amaguq #2 well location. 2) Given the local well control and seismic data, there appears to be no zones of anomalously high pressure at the depths in the proposed Amaguq #2 well location. • • 3) The surrounding well data is and should be the primary data for pressure prediction. The justifications identifying the inaccuracies of seismic derived pore pressures should be taken into account. The uncertainty in pressure prediction from 2D & 3D seismic data should be borne in mind, however, the pressure prediction provided useable pressure estimates in line with actual occurrences in the surrounding wells. Based on the above justification and data from the pore pressure models, a best fit line was derived to be .511 psi/ft. (See figure 3) The best fit line was derived with a "worse case" factor applied. Aklaq #2 was drilled in 2006 and had a pressure gradient of .498 psi/ft. Pressures for Aklaq #2 Fig #1 Pressure (psia) 0 0 0 0 0 0 0 0 0 0 0 0 O N et (O c0 0 ~-----------------__._---------- __, • -------- -- -------_1 ~~~ ~~~ i c~c~~~ ~cc~.~~~ ~C~ ~ o 0 0 0 ~.~,,~ ~1,,,.~ l ~ c. , • • Pressures fir Pa~visiC #~ Fig #~ ,~f~ ~3 -~~ ~- _ Pressure (psis) ;"r ~'~.~ ~ ~~ ~ i ~ ~,Wn~.~- 2.3,~~,1, d.~q • ~ Estimated Pressures for Amaguq #2 Fig 3 O 1000 2000 3000 4000 5000 a 0 6000 7000 8000 9000 10000 Pressure (psia) 0 °o °o o° °o °o N ~ c~0 ~ ~ Seismic Pore (psi), Seismic Frac (psi) ~; Hydrostatic (psi) I~ Lithostatic (psi) Pressure (psia) • Hydrostatic (psia) ~, i ~ MW (psi) '~ I Unconformity ~~ I .I,' 9 a_,x a. 't ~ ~ t ~ r~ss u re d~ t~ ~ s~~- t{'Y~'. ~~. ~C ~ ~ ; ~l ~iaure 4 Pressure Profile From Offset Wells Aklaq Area 0 ~~~. ----- - ------ - ------- -- - -_- - -_ _- -- ___-_ _ - - ___ _ - - ~, rr' i S ~ -~ ~ -S ~ r ~ 4 S~ 5 P r- N (~~- ^ ~' P - ~ -r a g -rt v ~ ~~ ?~, t C ~ G ~ g N O `s° ~ --~ -y .~ ~ S _- ~ r`^ r ~lklaq 2 • • 4 ~#. ra~~t tirn~ ~ pre~sur~ calibrat~~~ :` .~ X /~~". Information derived from the 2006 3D Figure r ~ ~ ~~ ~ r ~' ~ • t ~ s ~ ~ - s- ~ ~ ~ ~ ~ ~ ~ cs- r c° ~. ~-- `tom ~ ~^ ~ H ~ • Transit ti a r~ssur~ calibrate Information derived from the 2006 3Q -- ~ Pressures Q ~" 9 a c~~ ~ S v Q r _6 F 5 c ~ r- ~ ~ S- r° (`~` ' y / ~ ~ ~~ ~ \ 1 ~ `c~ d ~^ ~ ~ n er .~.~ (p 1 , C F+gure r~, ~~~,~~~~~ ~~'~~ Transit time & ressure calibration lots for A~magu~ # p p ,, .~ Figure 8 Information derived from the 2006 3D --- - -- - - ---- -- - - Pressures Tra~ei Time ' kPa = kg/m2 = Ibs/inz x 1 kg/2.2151bs x (12in/ft x 0.3048ft/m)z i Pressure 1 Travel Time(ms) 0 100 200 300 400 500 600 ~~ O O O O ~ ......___.._.--..____..- _ _ O N ~ tD ~ Q - ~ ~i ~~ ~~ 500 500 --- I! looo E t 1500 g ~ S zooo 1000 t d 1500 I I 2500 _.__... -_ --.. .__- _.._... _ - -_. _. __ '~. i i i ~ ~ I ~ 3000 ~ ~ ~I 2000 2500 3000- - - - - - -Seismic Pore (kPa) -Seismic Frac (kPa) -Hydrostatic (kPa) -Lithostatic (kPa) - - (1 Pa = 0.000145 psi) iI N ~ ~: x ~r ~ia~ii j; i a ^ ^ ^ ~I« a~Cfh~ i~ ~u~fild~~~im~dNN~ll.,.. 2D Seismic derived pore pressures ~u~°~~I~r~y`,~~pI;~N~~d~ u mi6 ~, lh . .. .,~: Modeled at Ikpikpuk #1 & South Simpson #1 F'gure 9 Normal fcmpadian 1 Trarnd Lino y :ia Irderval Transit Trmv 1qA Itom Se+amic Vane .. _ __ >.w xa ~ I ~---- ~-_ _ .J___i---- I I:fNO ' 'Jr`illerb Mud Weight K ';C j i _I ~' ____~...~~.___.-r_ r 1 i>are r ....._._. __._... .. Y SU nU ~--,-~-- _ _.._...----- ----, - __ .._.. -~--r - ~ U RU 9U IUY '.BA _ai Otl IiW :11, +.~. ~'ft F'F°~~ Normal Compaction ` ~ ' Trwld Una i. ~. ..__ _ ._ _ _ . _.i ]110 ~ 1 ~ ~» 1 Ik~ided ikxe pressure ~yyf i~ j i ~~ r/ ~Ae ~a i ~~ t - - . __.. -- - --r--~-- - - . _ _ _; . _ _. _ ._ _ - ~ _ _ .__.. _. _- - -- -- -_ ~a .__ j ._----~. _ . _ - -- _ ____ _ - ----- j r~rrllx's Mud Wwptrt ~~ r ' ~ Interval TramR T'n.re 1 from Sciamic Vrrrm __ _ V _ .- - -- _ _ __ _.___ _._ _ ,~ ,~N r . ~_. ' fNa LAOS , ,_... ._. .._ .__ ..._.. ~ __;_..,_..__...~ i ~ ._j.___ ~ i ~ _. ' fn ~e YIf ?0 4B aU IUU WI ill U I1.M Itl n ,. fs F'F'G • • BOP Control System The BOPE control system on the Arctic Wolf is a T3-Oilco blowout preventer control unit with a 450 gallon volume tank. Main energy is provided by two (2) 25 HP Bear (Model BX-10) electric triplex pumps rated at 12 gpm /pump and 3000 psi. The pump charges twelve (12) fifteen gallon bladder-type separator accumulators. A second energy charging system consists of two (2) Bear (Mode18 %2", 40:1) air- powered pumps rated at 4 gpm /pump at 3,000 psi. The above two energy systems are backed up by six 337 cubic foot nitrogen bottles connected to the manifold system. All of the systems are controlled by a manifold with six manual control stations at the unit. _ ,-~ 1 ~~~ts 2etoPS~oro9° 1~1 ` Mud Pr W° 5°~.X10~ b t41~~10 Th West lp°f° ~ 1eOS° flM 1 troll` " From NOS ~.~ ' QOCke Orvstter u~° 1pt'~11 \ ~~ 1 P~°Qlo9 Wm° 1 1 `b 1 1 1 1 To 1~ \ ~ ~. _. ~.~ - Acct 1 1 ~ : - _ Frort Aca 1•``7 J 1 1 ~ 1 N. 1 1 - ~ '] 1 { 1 1- g~ t 3 1 1 t" ~ f c~ ~ ; t51 ~ ~' ~ 5 :: ,, _. • ~ , :., 1 ~ ~- 1 1 ~ c 1 0 .. ~ .::.. ~ .1 ~ ~' . 1 ~, i 1 1 `" J •~ ,, 1 ~ , ~. , , .1 , ,,, 1 ,,_, ~.,~-._ 16" Hydraulic g~ 16" ANSI 150 F 21 1/ ~OYON DRILLING DRILLING LTD. ARCTIC WOLF • TD FLA- Td FLARE PITS t ACK rY'E.0.1 Ldy". .....•... 1. aaxaFex;, crtact~ 2, r2~Rf:~Fg.CMptE; :3 ?'gi5.3~'S,Ap(l psFkN,Vks:S 1 fi, 2g~" titk#5 YAt.VF: ~,~ 0w fxlM/WNO LTti. 7 ^a em xurri. Hew AlbeAe 1U&: L2 FaKi~HGS~pIW ~M ~n{YIfFYN~~Otl Cnn1i(®B!j ~'4 enrvwingM 1Me atiie property of AKtT.t 4g 49d. My rtprcF9n~Cn Nt Whek m pauf Y.'Bi9FOeA tNr ezprsss wrlAten w.aleeM t# ttRiYA OrX1&ty LLSI. k preMtilbed: Ad1~T~ w.k . . w)e.*n• tX9#F ~.~~w ~ MAEtt4K~p'sd) AR£TIC Wp1F MAtd~%tF4.p 3-d) ~C:NEMA?'§C ft~V +,S? • • Amaguq #2 Cementing Program 16" Conductor Casing (set at 80' Lead Slurry: Top of slurry: Surface Permafrost type C cement, 15.6 ppg density 100% excess Yield: 0.95 cu ft/sk Volume: 49.7 bbls (297 sx) including excess 9-5/8" Surface Casing (set at 2300') PreFlush /Spacer: 10 bbl Water, 20 bbl lO.Oppg Alpha Spacer (358'fill gauge hole) Lead Slurry: Top of slurry: Surface Permafrost type L cement, 10.7 ppg density 50% excess across Permafrost, 80' to 1038' 25% excess below Permafrost from 1038' to 1720' Yield: 4.15 cu ft/sk Volume: 145.3 bbls (197 sx) including excess Tail Slurry: Top of slurry: 1800' Premium class G + 1 % Calcium Chloride, 15.8 ppg density 25% excess for 500' of annulus volume Yield: 1.15 cu ft/sk Volume: 41.3 bbls (201 sx) including excess 7" Intermediate Casing (set at 8272') Stage one PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Alpha Spacer Slurry: Top of slurry: +/- 7272' Premium class G + 0.65% Halad-413, +0.2% CFR-3 +/- 0.2% HR-5 (retarder) as required, 15.8 ppg density 25% excess Yield: 1.15 cu ft/sk Volume: 31.5 bbls (154 sx) including excess Stage two PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Alpha Spacer Slurry: Top of slurry: +/- 4500'(top dependent on geological data collected while drilling) Premium class G + 151b/sx Microlite 0.65% Halad-413, +0.2%CFR-3 + 0.15% EZ-Flo + 0.7% Versaset +/- 0.1 % HR-5 (retarder) as required, 12.5 ppg density 25% excess Yield: 2.36 cu ft/sk Volume: 78.3 bbls (186 sx) including excess In the likelihood that hydrocarbons are reported (MWD/wireline logs and mud samples) in the intermediate section, a second stage cement job is planned. Cement will be brought 500' past the shallowest hydrocarbon bearing formation. If no hydrocarbon zones are identified, a contingency single stage cement job will be implemented. Cement will be brought a minimum of 1000' above the shoe as per regulations. 5" Production Liner (set at 8427') PreFlush /Spacer: 10 bbl Water, 10 bbl 11.5 ppg Alpha Spacer Lead Slurry: Top of slurry: +/- 8072' (100' above top of liner) Premium class G + 0.65% Halad-413, +0.2%CFR-3 +/- 0.4% HR-5 (retarder) as required, 15.8 ppg density 30% excess Yield: 1.16 cu ft/sk Volume: 7.6 bbls (37.5 sx) including excess • Amaguq #2 Mud Program General Discussion ~J This exploration well will be drilled from an ice pad in the NPRA. Due to the extremely remote location, waste management is critical on this well. Storage tanks will be available but waste minimization will be key to a successful drilling operation. The well will be drilled vertically, spudding with a 12 %" bit, and drilling to a surface hole TD of 2,300' TMD where 9-5/8" casing will be run and cemented. An 8 %2" hole will then be drilled to 8,272' where 7" casing will be run and cemented. A 6 1/8" hole will be drilled to a planned TD at 8,427 where a 5" liner will be set and cemented. Spud the well with a 6% KCl/Clayseal mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with several mechanisms to provide effective wellbore stabilization, ionic inhibition (KCl} and anionic bonding (Clayseal). The KCL/Clayseal mud will be maintained through the intermediate interval. The weight will be adjusted to 9.6 ppg prior to drilling out of the surface casing. This weight will be raised to 11.2 ppg prior to drilling the Miluveach shale: Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for shale instability. After cutting the weight to 9.3 ppg, this same system will be maintained to the 6 1/8" TD, again controlling surge/swab pressures and ECD's. Special Considerations: i. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment ~ in the event gas hydrates are noted -not expected this far west on the North Slope. ii. Lime and zinc carbonate should be on location for H2S. '' iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@2000 sx barite on location at all times). ~ iv. Due to the remote nature of this location, maintain an adequate supply of LCM and ' other mud additives, which maybe required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drillpipe in the 140-150 fpm range. vi. Possible shale instability issues in the Jurassic sequence (tight filtrate control/mud weight). • Well Specifics: • Casin Pro ram MD TVD Foota e 12 ''/o" hole (9 5/8" casin) 2300 2300 2300 8 %2" hole (7" casing) 8272 8272 5972 6 1/8" hole (4.5" casin) 8427 8427 155 Surface Interval: 12 %" to 2,300'; 6% KCUClayseal Mud Properties Spud to Base of Permafrost Base of Permafrost to Total De th Initial Value Final Yalue Initial Value Final Value Density ) 10.0 10.0 10.0 10.0 Funnel Viscosity seconds) 50-90 45-75 45-75 45-75 Yield Point 25-35 19-27 19-27 19-27 (cP) Plastic Viscostiy (lb/100 s~ 10-24 10-24 13-24 13-24 10 second Gel Strength (lb/100 7-12 7-12 7-12 7-12 s~ 10 minute Gel Strength (lb/100 9-18 9-18 9-18 9-18 s H 9.5-10 9.5-10 9.5-10 9.5-10 API Filtrate(cc) 8-15 6-8 5-6 5-6 Solids (%) 6-12 6-12 6-12 6-12 Base. Formulation: COLD Water Bleach KCl Clayseal Dextrid Barazan-D KOH Baroid Baracor Barascav D Drill-N-Slide Aldacide G - 0.84 bbl - 0.1 ppb Must be premixed in the make up water - 201bs (30-32K ppm K+) - 0.84 gal (.21 gaUbbl in initial mix) - 21bs (API filtrate of 8-15 cc's) - 1-21bs (as required for an initia135 YP) - 0.25-0.751bs (pH =10.0) - as needed 10 ppg - 1 ppb - 0.5 ppb (to be added when first circulating) - %i% v/v (Shaker screen blinding from clay) - ONLY if required while drilling ahead ** Use Barite for any needed weight ups on this well. NOT drill solids. • • A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system, however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders / desilters, mud cleaners, and centrifuges to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste, but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for the hole being drilled. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 30-35 range then adjust as dictated by the actual hole cleaning requirements of the well (no gravel is anticipated -mostly clays and sand). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a ~20 YP. However, do not hesitate to quickly raise the viscosity if hole-cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity or Barolift sweeps to supplement the hole cleaning capabilities of the system in this large bore interval - if sweeps are needed. Spud the well with an 10.0 ppg density mud. Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some ~ inhibition of the hydrate break-out. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefits from treating with 1 % Dril-N- Slide. The mud engineers state that it acts to smooth out the rheology of the fluid which allows the hydrates to break out of the fluid more readily. • • Calcium hypochlorite will be added to all make up water for this well. It will need added to each vac truck prior to the vac truck filling up with water (Peak has offered this as the easiest and safest method for adding it). It should be added at 0.1 ppb. Care must be taken to ensure the proper amount will be added. If possible, use 6% KCl brine (COLD) to maintain volume while drilling ahead. Maintain the mud chlorides ~ 28K - 34K ppm with KCI. Maintain the potassium level between 30K-33K with KCI. Use Dextrid and PAC's for API filtration control. Target 8-15 cc's initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 10.0 range with KOH. Initial Clayseal concentration should be 0.21 gal/bbl. Increase this to the full concentration while drilling ahead. By the amine test, maintain the Clayseal concentration in the 2% by volume range. Keep penetration rates below 150'/hr for controlling clay "chunks" (as have been experienced on other NPRA wells). Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. Do not add Barascav D while adding the Aldacide G. High levels of corrosion have been seen when running KC1 fluids in other areas on the North Slope. Daily sulfite and phosphonate checks will be run. Sulfite levels at 300-400 ppm and phosphonate levels between 600-800 ppm will be targeted. Barascav D and Baracor 7001evels will be maintained at programmed levels. Heavy amounts of clay will be present immediately which will require additions of Dril- N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers program after the casing is on bottom. While drilling it is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Intermediate Interval: 8 %2" to 8,272'; 6% KCl/Clayseal Mud Properties Initial Yalue Final Yalue Densi ) 9.5 - 9.6 11.2 Funnel Viscosity (seconds) 40-65 40-65 Yield Point (cP 15-25 15-25 r • ~ Plastic Viscostiy (lb/100 s~ 13-25 14-35 10 second gel 4-8 4-8 10 minute el 6-13 6-14 pH 10.0 10.0 API altrate <6 <4 HTHP filtrate <14 <10 Solids % 6-12 6-12 Treat the mud with bicarb and citric acid prior to drilling out. After drilling out, maintain the mud as specified above until approximately 400' above the top of the LCU. The mud weight should be raised to 11.2 ppg at this depth to help control the Miluveach shales. Offset wells went into the Miluveach with a much lower mud weight which then required extremely high weights once the shale began running on them. We have also seen this happen in other areas of the slope. Once the shale begins running, a higher mud weight is required than if it had been cut with medium weight to begin with. Achieve this weight up by adding 20 ppb of Baracarb 25, 20 ppb of Baracarb 50, and finishing with Baroid. The Baracarbs will add bridging material to the system to help seal micro fracturing as it occurs. An 8 ppb treatment with Barotrol will also be made prior to drilling into the Miluveach. Mud weights in the 12 ppg range have had to be used in this section once the shale started running. **Please note that these old wells would frequently elevate the yp in order to support the pieces of shale. This allowed them to trip easier even though the wellbore was still unstable. If shale problems occur, Baroid wants to discuss this option with FEX. It seems counter intuitive but it helped the old wells get to TD. The HTHP should be lowered to <10 cc prior to drilling the HRZ. Maintain this tight filtration to TD of the well with N-Dril HT/Dextrid, PAC and Baranex. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH at 10.0 with KOH. Additions of Aldacide G/X-Cide 207 should be made only if tests indicate a bacteria problem. Maintain the potassium level between 30K and 33K with KCI. The chloride level should be kept in the 28-34K range through additions of KCI. Fresh KCl and KOH will need added after trips to replace the K ion which will deplete during the trip. The Clayseal concentration will be maintained at the concentration. A 15-25 YP should be maintained using Barazan D+. Aklaq #1 saw losses in the Torok sands. String in 3-5 ppb of Barofibre and/or Baracarb 50 while drilling these sands. Due to over balance, it maybe advisable to have a 25 ppb LCM pill (check with the MWD personnel to maximize the particle size and concentration of this pill) standing by before entering the Kugrua sand. Losses were noted in prior years drilling programs when drilling this zone. Also string in 4-8 ppb Barofibre as the zone is drilled. • • Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. Production Interval: 6 1/8" to 8,427'; 6% KCl/Clayseal Mud Properties Initial Value Final Value Densi ) 9.3 9.3 Funnel Viscosity (seconds) 40-65 40-65 Yield Point (cP) 15-25 15-ZS Plastic Viscostiy (lb/100 s 13-25 14-35 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 10.0 API filtrate <4 <4 HTHP altrate <10 <10 Solids % 6-12 6-12 Treat the mud with bicarb and citric acid prior to drilling out. After drilling out, maintain the mud as specified above. If more weight is required, the use of Baracarb 25 and Baracarb 50 for part of the weight up is recommended. The Baracarbs will add bridging material to the system to help seal micro fracturing as it occurs. The HTHP should be maintained <10 cc. Maintain this tight filtration with N-Dril HT/Dextrid, PAC and Baranex. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH at 10.0 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made if testing indicates bacteria are present. The chloride level should be kept in the 28-34K range through additions of KCI. Maintain the potassium level between 30K and 33K with KCI. Fresh KCl will need added after trips to replace the K ion which will deplete during the trip. The Clayseal concentration will be maintained at it's programmed concentrations. A 15-25 YP should be maintained using Barazan D+. Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. • Recommended Drilling Parameters: Penetration Rates: Please see the following optimization chart for maximum allowable penetration rates. 'These rates are set for rotating. Penetration rates may need to be controlled to minimize overloading the annulus with cuttings which can lead to higher ECD's and shale de- stabilization. Close monitoring of PWD data will assist in diagnosing this potential problem and allow real-time, timely remedial actions. Due to the vertical profile of this well, rpm has no effect on hole cleaning. Hydraulics Outimization Chart Actual P rates will need adjusted to how well the surface equipment can handle the flow and cuttings. 12 1/" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-> 500 600 700 60 m 133 174 210 80 m 133 174 210 8 %" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- 350 450 550 60 m 169 242 307 80 rpm 169 242 307 61/8" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM- 200 250 300 60 m 214 277 329 80 m 214 277 329 Elevated flowrates should be avoided in the 6 1/8" hole section as they cause increases in ECD and are not necessary to clean this vertical wellbore. Hole Cleaning: Maintaining the programmed flow properties is essential to a successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (drag, torque, partial pack off) should be countered by increasing the circulation time on subsequent connections and prior to trips. If high vis sweeps seem ineffective, other types of sweeps (Barolift, weighted, etc.) should be tried. The returns at surface of all sweeps should be monitored at the shakers to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. • ~ Risks and Contingencies: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid. To that end the rheology of the system needs to be run as low as possible while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long way toward reducing the risk of lost returns. Should lost returns occur check with MWD personnel prior to pumping any pills to ensure that no plugging will occur. Bacteria Control: Should signs of bacteria in the mud become evident, Aldacide G must be used. Do not add the Aldacide G while adding Barascav D. After adding any Aldacide G, test for its concentration and report daily. Wellbore Instability: The Kingak/Miluveach shales can be problematic. Ensure the mud has the HTHP reduced to less than 10 cc. Should any signs of shale splintering be seen, immediately raise the mud weight a minimum of 0.4 ppg. If "blocky" shale is seen, increase the Barotrol concentration a minimum of 2 ppb. As much as 12.1 ppg has been needed in other areas of the NPRA. Offset wells have had to raise the viscosity to ~30-35 YP to keep the shale suspended and avoid pack offs. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation. Pumps should be "staged" on line slowly -ALL THE TIME- to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning. Stuck pipe can occur if the hole isn't clean or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming is an invitation to packing off and resulting stuck pipe so backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Waste Minimization: 1. Solids Control Equipment - for reduced dilution volume. Monitoring shaker screen mesh size and checking for screen damage (holes) is a primary responsibility of both the fluids engineer and rig contractor. The centrifuges must be run as much as possible to reduce dilution throughout all hole sections. • • 2. Gauge Hole -for reduced cuttings volume. • Inhibitive Mud System -Use of 6%+ KCl Polymer system as outlined in the mud program to reduce washout in clay/shale sections • Hydraulics and Rheology as recommended in the mud program to reduce washouts in unconsolidated formations, especially on surface hole. • Use of near freezing water for mud make-up and dilution to reduce thawing of Permafrost. Note: the close proximity of heat generating equipment (power plants) to the mud pits on some rigs can increase the surface mud temperatures by 10 to 15 deg F while drilling surface hole. • Drilling the surface hole and running casing as efficiently as possible to reduce time, thus minimizing thawing and washout of the Permafrost. 3. Re-cycling of Fluid -for reduced mud volume disposal An Inhibitive KCl Polymer system, as outlined in the mud program, allows for re-use from interval to interval and from well to well (if storage is available). Tracking and Reporting of Waste Streams and Costs: We consider this to be of vital importance. TFM reports will be completed daily. Interval and well summaries will. also be done. Lubrication: Due to the vertical nature of this wellbore, lubricants should not be required. If required, 1-2% of EZ Glide or Torq Trim II and %2% DriI-N-Slide can be added. Corrosion Mitigation Barascav D and Baracor 700 will be run in this fluid system to mitigate the corrosion. Daily sulfite and phosphonate checks will be run to monitor this program. Sulfite levels should be maintained at 200-300 ppm and phosphonate levels between 600-800 ppm. Corrosion rings will be run on this well. Two rings should be run on each trip in the hole - one located in/near the saver sub and one just above the BHA. • • 4 0 010A W W IS '.R~cer, "" "Jll~'AN3S40J ". ~~~cblC ~N:.. ~__ _ ~~ ~~~% ~. ~/ ;.iH/~ /lain, ~F ~~~? i / ~ i ~ m a tf LL: 2 V ~ V _ ~ Rl.. 7 j j ~~~~ '/~ ~~ ~i ~/ j % ~ ~~~ ~_ J ~~~ ~ _W i._ ~ j =- LL ,. o ~ ~. _ ~~ i~ i ... ~j ~~,y = _ _ ,. - - p.-z -- i i„~ - /~ '> a ~ "' `i T J ~ „ ~ ~y,,. G c~ m S ~~ r ~--. -_*'\ }W}~ it s W - ~'' O~Z ~ - a~ U~MQ~rn o ~, U L (9 ~ W ~ T T f9 t9 a a i~,vAN ~.. _ _ ._. t'YSYitl j031Vi3 ~ol•~ed J rP1 ti O ~~ 0 .i f7J ~~ N C.0 0 • • ~`~i~S~II~'~~L LE~~ER ~'HEC'KI,~~T' ~'E L L v a CIE 1N12 ~-- >Pa®# Z ®eve8opment Service ~ Exploratorg" Stratigraphie Pest ~lon-Conventional ~~"el! Circle Appropriate Letter /Paragraphs to be Included in Transmitta9 setter CHECK ~ ADD-Otis TEXT FOR APPROV:4L LETTER ~'I-LAT (OPTIONS) APPLIES i' 1 NItiLTI LATERAL ~ The permit is for a new we(Ibore segment of existing i well ([f last two digits in Permit No. .API tiro. ~0- AP( number ar ~ - - between 60-69) e ~ ,Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 .-~aC '_5.00~(t~, all records, data and logs '' 'acquired for the pilot hole must be clearly differentiated in both well name ( PH) and AP[ number (~0- - -) from records, data and logs ,acquired for well 'SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION ~ 2~.0». Approval to perforate and produce % i>Ject is contingent upon issuance of a conservation order approving a spacing ' exception. assumes the I liability of any protest to the spacing exception that may occur. j i DRY D[TCH 'All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or ~' .from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: 'I 'Von-Conventional !production or production testing of coal bed methane is not allowed Well ;for name of well) until after ~ompanv Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing, '_ ! program. 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Y T c o, a a i ~ c, °~ °~ ° ~ ~; ~' ~ ~, ~ 4 °--; O m O ai ai ~ a; a; U ~ o ~ ¢, a. z o ~ U ~ ~ ~, ~, U U v ~ v. ca U ¢ a, d ~ - O, -; o; m ° O, ~ m U; ° °' ~ ~; ~' ~` i, o. a~, ~a ~, a cn a p cn U p ~ `~ U w a O , ~ N , : M e} t1') (° , , , O I~ W O N M r ~ , ~ ~~ Cp I~ `- , W O _____ __ . , : _ O N N N_N , : -, M st ~ N N N : (° N , - N W d) N N N , _ O M M_ N M C . M M M -- , , , , , ~ C° f~ 00 O M_ M M M M ' V / ~ / ~1 U ~ co ° to ° ~ ° c C C o m +'' N ° o ..+ N y o w N a~ V c Q'' ~ ~ « ~ O _~ ~ ~ C O N ~ D °r ~ o O N o ~ J N C a i ~% ~ o U O ¢ m W ¢ W d~ Q U' Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special efifort has been made to chronologically organize this category of information. F E X Alaska North Slope Northwest NPR-A Amaguq #2 Sample Geochemistry ;m (Cuttings and Rotary Sidewall Core Samples) m m ~~ ~ ~ m January 2008 ~~ N ~ ~~ ~ rn ~° ~ ~. TOC and ROCK-EVAL DATA REPORT Amaguq #2 Rock Eval and TOC data NOS No. OpwKO- YYNI NttrtM Top aPU h Ewltgn DpYt M~dlan Doplh EMtpN 8rurtpN Lrtoo TOC E1 82 E3 Tmtat Cdc. %Ro i1tNN. NI d SUES EIlTOC PI NoMs testa ryrapmr 07-4547-194113 FEX Amaguq #2 4220 _ 4250 4235 cuttin s 7.52 0.24 1.16 0.63 440 0.76 76 41 2 16 0.17 Ic n;ItS2sh 07-4547-194173 FEX Amaguq #2 4220 4250 4235 icked cuttin s 1.44 0.35 1.41 0.48 440 0.76 98 33 3 24 0.20 n 07-4547-194174 FEX Arna u #2 5000 5030 5015 cuttin s 1.87 0.46 2.02 0.56 443 0.81 tOB 30 4 25 0.19 n;ItS2sh 07-4547-194114 FEX Ama u #2 5000 5030 5075 icked cuttin s 1.71 0.46 1.69 0.47 441 0.78 99 27 4 27 0.21 n 07-4547-194115 FEX Ama u _#2_ 5900 5930 5915 cuttin s 1.83 0.53 1.86 0.64 442 0.80 102 35 3 29 0.22 n 07-4547-194115 FEX Amaguq #2 5900_ 5930 5915 icked cuttin s 1.89 0.61 1.37 0.68 440 0.76 72 36 2 32 0.31 n 07-454 7-194176 FEX Ama u #2 6800 6830 6815 cuttin s 1.54 0.53 1.24 0.65 452 0.98 81 42 2 34 0.30 n;ItS2sh _ 07-4547-194176 FEX Ama u #2 _6800 _ 6830 6875 Icked cuttin s 1.21 0.39 0.53 0.53 402 0.08 44 44 1 32 0.42 f 07-4547-194117 FEX Ama uc~#2 7230 7240 7235 cuttin s 3.55 1.90 3.86 0.70 457 1.07 109 20 6 54 0.33 Ic n;ItS2sh _ 07-4547-194117 FEX Arttac,Zuq #2 7230 7240 7235 icked cuttin s 2.89 1.32 3.14 0.66 455 1.03 109 23 5 46 0.30 Ic n;IlS2sh 07-4547-194118 FEX _ Ama u #2 7320 7330 7325 cuttin s 3.38 1.53 2.70 O.B6 455 1.03 80 25 3 45 0.36 n•IlS2sh _ 07-4547-194 118 FEX Arrtagu~C #2 7320 7330 7325 icked cuttin s 2.90 1.24 2.09 0.53 460 1.12 72 18 4 43 0.37 n;I1S2sh _ 07-4547-194179 FEX Amagug#2 7380 7390 7385 cuttin s 1.72 0.44 1.37 0.85 451 0.96 80 49 2 26 0.24 n;ItS2sh 07-4547-194119 FEX Ama u #2 7380 _ 7390 7385 icked cuttin s 2.08 0.70 1.35 0.37 460 1.12 65 18 4 34 0.34 n;IlS2sh 07-4547-194120 FEX Amaguq#2 7450 7460 7455 cuttin s 1.22 0.36 0.70 0.48 459 1,10 57 39 1 30 0.34 n _ 07-4 547-19 4121 FEX Ama u #2 8460 8 465 8462.5 cuttin s 1.08 0.16 0.51 0.97 431 0.60 47 90 i 15 0.24 n'ItS2sh _ _ 07-45 47-194121 FEX Amaguq #2 8460 _ 8465 8462.5 Icked cuttin s 1.06 0.24 0.44 0.90 413 0.2) 42 85 0 23 0.35 f _ 07-4547-194122 FEX Amaguq #2 866 0 8670 8665 cuttin s 1.56 0.30 1.09 1.04 433 0.63 70 67 7 79 0.22 Ic n 07-4547-194122 FEX Anta u #2 _ _ 8660 8670 8665 icked cuttin s 1.62 0.39 1.34 1.21 434 0.65 83 75 1 24 0.23 Ic mltS2sh _ 07-5059-215799 FEX _ Amaguq #2 7235.7 7235.1 7235.1 swc 1.81 1 3.23 0.4 453 0.99 178 22 8 55 0.24 c, Ic n;ItS2sh 07-5059-2758W _ FEX _ Arna~uq#2 7245.2 _ _7245.2 7245.2 swc 4.77 2.3 8.57 0.49 459 1.10 i80 10 17 48 0.21 Ic n;ItS2sh 07-5059-215801 FEX Amaguq#2 _7365_ _7365 7365 swc 0.84 0.09 0.53 0.19 481 1.50 63 23 3 it 0.15 Ic htS2p 07-5059-215802 _ FEX A macZug#2 8440 8440 8440 swc 7.50 0.04 0.69 0.04 525 2.29 46 3 17 3 0.05 Ic htS2p 07-5059-215803 FEX _ Ainac,~ucL#2 8495 8495 8495 swc 0.44 0.02 0.64 0.19 531 2.40 145 43 3 5 0.03 Ic htS2p 07-5059-215804 FEX Amaguq#2 _ _ 8510 _ 8510 8510 swc 0.71 0.04 0.67 0.06 536 2.49 94 8 11 6 0.06 Ic htS2p 07-5059-215805 FEX __ Amac,~ug#2 8530_ 8530 8530 swc 0.60 0.05 0.51 0.07 528 2.34 85 12 7 8 0.09 Ic htS2p 07-5059-275806 FEX Amaguq #2 8710 8710 8710 swc 1.05 0.04 0.37 0.07 508 1.98 35 7 5 4 0.1 c, Ic hIS2p Note: SWC data added to this sheet - so all Amaguq 2 data is here Note: '-1' indicates not measured or meaningless ratio ' Tmax data not reliable due to poor S2 peak TOC =weight percent organic carbon in rock S1, S2 = mg hydrocarbons per gram of rock S3 = mg carbon dioxide per gram of rock Tmax =°C HI =hydrogen index = S2 x 100 / TOC OI =oxygen index = S3 x 100 / TOC S7/TOC =normalized oil content = S7 x 1001 TOC PI =production index = St / (S1+S2) Calculcated % VRo = 0.0180 xTmax - 7.16 (Jarvis et al., 2001) Measured % Ro =measured vitrinite reflectance Notes: c =Rock-Fuel analysis checked and confirmed Ic = Leco TOC analysis checked and confirmed Pyrogram: n=normal ItS2sh =low temperature S2 shoulder ItS2p =low temperature S2 peak htS2p =high temperature S2 peak f =Flat S2 peak na =printer matfunctlon pyrogram not available HumbM GwcMmkal Servkaa ONisbn LOG 1: ORGANIC I I M ~ • I I ~ '~ i RICHNESS O O,eanic i Rich I i-- I I ~ •Amabuy N? 2000 10000 1 mica) Log °_nergy, AK LO G 4 : NORMALIZED OIL LOG S: CALCUI CONTENT TURITI a $ x ~ +c o ~ ~~ I ~ i ~ I of ~o ~ N I ~ ~ ' ; I `E o i E ~ E ~ ~ g ~ ~I i r8 E i o E ~ c I ~ ~ W ~ ! ~j ~ ~ ~ , a I ~ ~ I o ' ( I I i I I i I ^ ~ i i i i I ~ ^ 0.0 2.0 0.0 6.0 8.0 10.0 I 0 3 10 1 S 20 ! 0 200 000 600 800 1000 I 0 SO 100 I30 200 I 0.2 0.7 12 1 ', TOC (W'1.%~ I OIL POTENTIAL (52) I I IYpROUEN INDEX (Ilq ~ NORMALIZED OIL CONTENT ~ CALCULATED 7. Figure 1. Geochemicat log of TOC, remaining potential (S2), kerogen type (HI), normalized oil content, and calculated and measured vitrinite reflectance. Humble Geochemical Services Division 0 ~, ~ c o ~a a ~~ ~ v~ ~- ~o o a ~_ ~ O ~ ~~ ~, ~ ~ c i, O i w it _ a y O v . . _ 4 H ~], ~ .''S 4.f, ` e,, j yN~ 'Y'M _/ _~ - o °i a o ... '; ~ o ', U o~ ~~ Z O m oQ ~v U_ Z Q o~ M O J Q ~ O N ~ O , C O ~/O~ O O'/^~ O ~/O~ O /'1 O Y J O lC) M N N ~ ~ (~~oa 6/~H 6w) ~dI1N310d N0821t/~02laJlH JNINIdW3?! O O KEROGEN TYPE Talisman Energy, AK ~~o 900 800 _ 700 :~ V O t- v 600 i . ~ 'X ~: G a z D 400 O 0 ~„ 300 200 i 100 C Q ._ ___-- • Amaguq #2 ; Type 1 -- Oil Prone Type 11 (usu. marine) Oil Prone Mixed Type 11 / 111 Oil /Gas Prone Type 111 N~ Gas Prone ~~ ~• ~~• ~• ~• Type lV Gas Prone i ! 0 20 40 60 80 100 120 140 160 i80 200,E OXYGEN INDEX (Ol, mg COzlg TOC} ~~ ~ Figure 3. Kerogen type Humble Geochemical Services Division Tooo 800 800 700 U O E- a~ 600 Q ... WJOa Q Z_ g W `aoo 0 '; ~ ~ so0 ~. <: 200 fQQ i i Q KEROGEN TYPE and MATURITY Talisman Energy, AK Type 1 Oil Prone (usu. lacustrine) Type Il Oil Prone (usu. marine) Mixed Type 11 /lll Oil /Gas Prone Type 111 Gas Prone Type IV T -0.55% Ro ~~~ W ind°~ • Amaguq #2 •• -1.00%Ro ow sata'Wet ~a~tnd Conde° ~ ,paow -01.40% Ro as W. • • • • sso ssa aso aso sso Tmax (°C} Figure 4a. Kerogen Type and Maturity (Tmax) Humble Geochemicai Services Division KEROGEN TYPE and MATURITY Talisman Energy, AK 1000 ~~ eoa U O F ~_ p ~ m ~_ ~ ~uu W ~ O 2 Z LLt ~ 40Q O >- } i. ~ j i i 1(3(l f a 0 ~..._ _ O.sS°kVRo ~ ~jihd° Type 1 QI Oil Prone i-- (usu. lacustrine) • Amaguq #2 i Type 11 Oil Prone (usu. marine) Mixed Type H/lll Oil /Gas Prone 00%VRo d~W Type 111 • ~ ate Wet ~a5 Win Gas Prone COndenS • ~ ~ - t.ao°i°~ o D~ 0ag WindOW •Type IV f • a.2 a.a Os os ~ 1.2 ~.~ ~s ~s 2 z2 Calculated Vitrinite Reflectance Equivalertt {CaI.VReq.} Figure 4b. Kerogen Type and Maturity (Tmax calculated %VRo) Humble Geochemical Services Division S i ~ ~ ~ ~ ~ ~ ~ S ~ ~ i ~ ~ ~ ~ ~ ~ Talisman Energy, AK - __ _- 0. 0. .~. 0. 'a .. 0 0. z Z o. 0 v ~ o. 0 0 °' 0. 0. 0. Figure 5a. Kerogen conversion and maturity (based on Tmax). Humble Geochemical Services Division S ~ ~ ~ ~ ~ l~ ~ ~ ~ i ~ ~ ~ ~ S ~ ~ ~' Talisman Energy, AK • Amaguq #2 .-. 0.7 a x z 0.6 0 0.5 H U 0 0.4 ~ ~ a 0.3 '~ • ~~ • ~ ~ • 0.2 ~ ~~ A.1 Low Level Conversion 0- , • Hi~ Level Conversion -Expulsion ~- ~ 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 MATURITY (calculated vitrinite reflectance from Tmax) Figure 5b. Kerogen conversion and maturity (calculated %VRo from Tmax). 2 2.2 Humble Geochemical Services Division TOC and ROCK-EVAL DATA REPORT Amaguq #2 Rock Eval and TOC data IIOS No. C)pantor MMN dw» Top DoPw h Oollom apa M~dtin apb sonpio BampM T Lsoo Tp: tft 82 >sJ Tmax 1 Cato. XRO Mw. %Ra FII p 8?!E3 StlTOC M Rota Clreb hreW~ 07-4547-194113 FEX Ama u #2 4220 4250 4235 cuttin s 1.52 0.24 1.16 0.63 440 0.76 76 41 2 i6 0.17 Ic n;ItS2sh 07-4547-1 94113 FEX Ama u #2 4220 4250 _ 4235 icked cullin s 1.44 0.35 1.41 0.48 440 0.76 98 33 3 24 0.20 n _ 07-4547-194114 FEX Ama u #2 5000 5030 5015 cullin s 1.87 0.46 2.02 0.56 443 0.81 108 30 4 25 0.19 n;ItS2sh 07-4547-194114 FEX Ama u #2 5000 5030 5015 icked cullin s 1.71 0.46 1.69 0.47 441 0.78 99 27 4 27 0.21 n 07-4547-194115 FEX Ama u #2 5900 5930 5915 cullin s 1.83 0.53 1.86 0.64 442 0.80 102 35 3 29 0.22 n 07-4547-194115 FEX Ama u #2 _ 5900 5930 5915 Icked cullin s 1.89 0.61 1.37 0.68 440 0.76 72 36 2 32 0.31 n _ 07-4547-194116 FEX Amaguq #2 6800 6830 6815 cullin s 1.54 0.53 1.24 0.65 452 0.98 81 42 2 34 0.30 n;ItS2sh 07-4547-194116 FEX Ama u #2 6800 6830 6815 icked cuttin s 1.21 0.39 0.53 0.53 402 0.08 44 44 1 32 0.42 f _ 07-4547-194117 FEX Ama uq#2 7230 7240 7235 cuttin s 3.55 1.90 3.86 0.70 457 1.07 109 20 6 54 0.33 Ic n;IlS2sh 07-4547-194117 FEX Arnagu~ #2 7230 7240 7235 Icked cullin s 2.89 1.32 3.14 0.66 455 1.03 109 23 5 46 0.30 Ic n;IlS2sh _ 07-4547-194118 FEX __ . Ama u #2 7320 _ 7330 7325 cuttin s 3.38 1.53 2.70 0.86 455 1.03 80 25 3 45 0.36 n;IlS2sh 07-4547-194118 FEX Ama u #2 7320 7330 7325 icked cuttin s 2.90 1.24 2.09 0.53 460 1.12 72 1B 4 43 0.37 n;ItS2sh 07-4547-194119 FEX Ama u #2 7380 7390 7385 cuttin s 1.72 0.44 1.37 0.85 451 0.96 80 49 2 26 0.24 n;ItS2sh 07-4547-194119 FEX Ama u #2 7380 _ 7390 7385 Icked cuttin s 2.08 0.70 1.35 0.37 460 1.12 65 18 4 34 0.34 n;ItS2sh 07-4547-194120 FEX Ama u #2 7450 7460 7455 cuttin s 1.22 0.36 0.70 0.48 459 1.10 57 39 1 30 0.34 n _ 07-4547-194121 FEX Ama u #2 8460 8465 8462.5 cuttin s 1.08 0.16 0.51 0.97 431 0.60 47 90 1 15 0.24 mltS2sh 07-4547-194121 __ _ FEX Ama u #2 8460 _ _ 8465 8462.5 Icked cuttin s 1.06 0.24 0.44 0.90 413 0.27 42 85 0 23 0.35 f 07-4547-194122 FEX Ama u #2 8660 8670 8665 cuttin s 1.56 0.30 1.09 1.04 433 0.63 70 67 1 19 0.22 Ic n 07-4547-194122 FEX Ama ug#2 8660 8670 8665 icked cuttin s 1.62 0.39 1.34 1.27 434 0.65 83 75 1 24 0.23 Ic n•ItS2sh 07-5059-215799 FEX Ama u #2 7235.1 7235.7 7235.1 swc 1.81 1 3.23 0.4 453 0.99 178 22 8 55 0.24 c, Ic n;ItS2sh 07-5059-215800 FEX Amaguq #2 7245.2 7245.2 7245.2 swc 4.77 2.3 8.57 0.49 459 1.10 160 10 17 48 0.21 Ic n;ItS2sh 07-5059-215807 FEX Amagug#2 7365_ _ 7365 7365 swc 0.84 0.09 0.53 0.19 481 1.50 63 23 3 I1 0.15 Ic htS2p 07-5059-215802 FEX Ama u #2 8440 8440 8440 swc 1.50 0.04 0.69 0.04 525 2.29 46 3 17 3 0.05 Ic htS2p 07-5059-215803 FEX ~ Amaguq #2 8495 8495 8_495 swc 0.44 0.02 0.64 0.19 531 2.40 145 43 3 5 0.03 Ic htS2p 07-5059-215804 FEX Ama u #2 8510 8510 8510 swc 0.71 0.04 0.67 0.06 536 2.49 94 8 11 6 0.06 Ic htS2p 07-5059-215805 FEX Ama ug #2 8530 8530 8530 swc 0.60 0.05 0.51 0.07 528 2.34 85 12 7 8 0.09 Ic hlS2p 07-5059-215806 FEX Ama u #2 8710 8710 8710 swc 1.05 0.04 0.37 0.07 508 1.98 35 7 5 4 0.1 c, lc hlS2p Note: SWC data added to this street - so all Amaguq 2 data is here Note: "-1" indicates not measured or meaningless ratio ' Tmax data not reliable due to poor S2 peak TOC =weight percent organic carbon in rock S1, S2 = mg hydrocarbons per gram of rock S3 = mg carbon dioxide per gram of rock Tmax = "C HI =hydrogen Index = S2 x 100 / TOC OI =oxygen index = S3 x 100 / TOC S1/TOC =normalized oil content = S7 x 100 l TOC PI =production index = St / (S1+S2) Calculcated % VRo = 0.0180 xTmax - 7.16 (Jervis el al., 2001) Measured % Ro =measured vitrinite reflectance Notes: c =Rock-Eval analysts checked and confirmed Ic = Leco TOC analysis checked and confirmed Pyrogram: n=normal ItS2sh =low temperature S2 shoulder IlS2p =low temperature S2 peak htS2p =high temperature S2 peak f =flat S2 peak na =printer malfunction pyrogram not available HumbN Goocbam/cal Servbas DNlabn Geochemical Log Talisman Energy, AK +~~ y^~ ; lip 4 `~ ~ ^ • M LOC 3: ORGA MATTER TYP NIC E LO G 4 : NORMALIZED OIL CONTENT ~ I iac~ Mix ~ Oil f : Oil l i m l C y II c C ~ I (mw.) ( ac.) i '~ ~i ~ ~ ~ ~ E M ~ ~ I ~ o _ ~ ~ ~ ~ J OJ i pp~ i f ~ I a I, I i y O i I ~ I o ____ LOG S: CALCULATED. i LOG 6: MEASURED I}~1TURITY w M TURITY ~r I ~ i ~ c Iii c I ~ o ~I ° ~~ o _ N N N E i o~ r ~ E I >;~ E x ~ E ', O e~ t7 li I Z ^ ^ r ~ Y ~ ~~ I ~ ~ ~ i I ^ i ~ i ~ j I ~ ~~ ~ I ~ ~ ~ i I' ~ ~ ~ ' ' i I i i ~ I ! I ~ I ' ~ ~I 1 10000 1 ~ ~ j I ~ ~ I I i I i ~ I i ~ ~~^ 0. 2.0 t.0 6.0 8.0 10.0 ~ 0 0 S 10 IS ZO 0 200 400 600 800 IOOU 0 SO 100 ISO 20 0 ~ 0.2 0,7 1.2 L1 2.2 j O S 0.7 12 1.7 21 TOC(NR.%~ I O ILPOTENTIAL(S2) HYDROGEN INDEX (fiD NORMALIZED OIL CONTENT CALC ULA TEDS.Ro i VITFNITE REFLE CTANCE Figure 1. Geochemical log of TOC, remaining potential (S2), kerogen type (HI), normalized oil content, and calculated and measured vitrinite reflectance. Humble Geochemical Services Divlslon 0 o i . c = o Qa' c 0 ~'a o o ~ y ~ ~~ _ ~ ~ a (~ C7 ~ O O ... ~ ~o 900 ' • Amaguq #2 TYPe 1 ~ ' Oil Prone 800 700 :CJ O ~ E... as ~: v ''' B00 m E Type 11 (usu. marine) ' Z Oil Prone K SDQ W d 2 Z f. =' Mixed Type 11 /lll r 300 Oil /Gas Prone 200 Type 111 N~ Gas Prone 100 ~~~ .I• • -_ { ~• Type 1V 'I Gas Prone 0 I 0 20 40 60 80 100 120 140 160 ,180 200 J OXYGEN INDEX (Ot, mg COI/g TOC~ Figure 3. Kerogen type Humble Geochemica/ Services Division KEROGEN TYPE and MATURITY Talisman Energy, AK ~OOo - 900 80d 700 !-- 0 600 ~ :~ i o f f.. -~. y ~N I Z Z ,W,^ V ~ 400 0 300 ~: i. 20Q goo j i 0 Type 1 Oil Prone (usu. lacustrine) • Amaguq #2 ' Type ll Oil Prone (usu. marine) Mixed Type ll / 111 Oil /Gas Prone Type 111 Gas Prone Type !V •• -1.00%Ro ~ndaW ensat~'Wet ~a~ Cond was w;naow i, ^01.40% Ro • • • 330 380 430 480 530 Tmax (°C} Figure 4a. Kerogen Type and Maturity (Tmax) Humble Geochemical Services Division -580 KEROGEN TYPE and MATURITY Talisman Energy, AK 1000 - 0.55%VRv - _ , I 1N ~;nd° Type l Qf~ 300 Oil Prone I (usu. lacustrine) 8~ • Amaguq #2 ~- - J 700 U O F- ~' ~ 6~ TYPe II j ~ Oil Prone ~ Oay (usu. ~ marine) C ~ v ! ~ ~_ 0 Z Z :. ~.`_ 4~ - '> ', ~ _. ,' Mixed Type _. ` '300 11/lll Oil /Gas Prone ~~ t """"""'--. I 200 TYPe 111 • -~00%VRo Wet ~asW,ndOW Gas Prone ~onden5ate too ~ i ~YPe IV I • r 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 Calculated Vitrinite Reflectance Equivalent (CaLVReq,} Figure 4b. Kerogen Type and Ma#urity (Tmax calculated %VRo) Humble Geochemical Services Division ! i i i i i lis i i fiiiit i!! i! i!!! 1 0.9 0.8 a .. ~ 0.6 z ~ 0.5 t= U 0 0.4 'O a 0.3 '' 0.2 0.1 0 i Talisman Energy, AK _- I Figure 5a. Kerogen conversion and maturity (based on Tmax). Humble Geochemica/ Services Division Talisman Energy, AK ,___ 1_ Immature Oil Zone Condensate - ~ Wet Gas 0.9 Zone ~i j , ~! R 0.8 ... 0.7 a_ x ~ '' W 0.6 Stained or ~ ~ontarninated Z Z 0.5 - O H U 0 0.4 ~ ~ °- 0.3 •~ 0.2 - 0.1 - • ~~ • Dry Gas Zone j • Amaguq #2 -~ • ~ •~ •i • •~ • --- --- ', Hi~- Level Conversion -Expulsion i I caw I ~vPl C;onversic~r~ '' 0. 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 MATURITY (calculated vitrinite reflectance from Tmax) Figure 5b. Kerogen conversion and maturity (calculated %VRo from Tmax). 2 2.2 Humble Geochemical Services Division TOC and ROCK-EVAL DATA REPORT Tallaman Energy NO8 No. YWMt6m~ Tap O~plh YolEonr pptlr Iba~n pylh iM1PM lwco TOC 81 S2 83 Trrrs Cale. %Ito Mat. 'lino MI d Etfs7 E1/!OC PI -~ cn.ck. ryroyr.m 07-5059-215799 07-5059-215800 Amaguq #2 _ Amaguq#2 7235.1 7245.2 _ 7235.1 7245.2 swc swc 1.61 4.77 1.00 2.30 _ 3 23 _ 8.57 0.40 0.49 453 459 0.99 1.10 178 180 22 _ _ 10 6 17 55 48 0.24 0.21 _ c Ic __ n;ItS2sh Ic n;ItS2sh 07-5059-2151301 Amaguq#2 7365 7365 swc O.B4 _ 0.09 053 0_19_ 461 1.50 _ _ _ _63 23 3 11 0.15 Ic htS2p _ 07-5059-215602 _ Am~ug #2 8440 8440 swc 1.50 0.04 0,69 0.04 525 2.29 46 3 17 3 0.05 -- Ic htS2p _ -._ 07-5059-215803 _ #2 Am~uq - 8495 -_ 8495 _ swc _ 0.44 0.02 0.64 0.19 531 2.40 _ 145 43 3 5 0.03 Ic htS2p 07-5059-215804 _ _ Amaguq#2 _ , 8510 _ __ 8510 __ swc 0.71 0.04 0.67 0.06 536 2.49 94 8 71 6 0_06 Ic htS2 _ -- 07 5059-215605 _ - Amaguq#2 _ 8530 -_ 8530 .. - swc 0.60 0.05 _ 0.51 0.07 528 2.34 85 12 7 8 0.09 Ic htS2 _ _ 07-5059-215606 Am~uq#2_ 8710 ___ _ __ 8710 _ swc 1.05 0.04 0.37 0.07 508 1.98 35 7 S 4 0.10 c, Ic htS2 Note: "-1" indicates not measured or meaningless ratio Tmax data not reliable due to poor S2 peak TOC =weight percent organic carbon in rock S7, S2 = mg hydrocarbons per gram of rock S3 = mg carbon dioxide per gram of rock Tmax = °C HI =hydrogen index = S2 x 100 / TOC OI =oxygen index = S3 x 100 / TOC S1l1 OC =normalized oil wntent = S1 x 100 / TOC PI =production index = St / (S1+S2) Calculcated % VRo = 0.0160 xTmax - 7.16 (Jarvis et al., 2001) Measured % Ro =measured vitrinite reflectance Notes: c =Rock-Eval analysis checked and confirmed tc = Lew TOC analysis checked and confirmed Pyrogram: n=normal ItS2sh =low temperature S2 shoulder ItS2p =low temperature S2 peak htS2p =high temperature S2 peak f =flat S2 peak na =printer malfunction pyrogram not available Humble Geochemlcal Services D/Ylslen ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ A LOG 1: ORGANIC RICIINESS Oiy~nic Hicn ^ ~ ^ _I ~ LOG 2: HYDROCARBON I POTENTIAL Excellent ~~ Geochemical Log Talisman Energy LOG 3: ORGANIC I LOC 4: NORMALIZED OIL ~, LOG 3: CALCULATED CONTENT MATURITY 1 up` c ~ i ~ p~ GI 0- O c ~ ~ N N N 0~'0~ ~ ~ ~ ? '° 2 m o I Z^ C U O ~ E E ~ o ~ ~ U , i i a -, ~ W I ~ j i F a` "a ~ I ° ~ I , ++ I . ~I ! i I I~ I I ' I i i I I ( I I I I I 1 I I I I I I I ; I I 1 I 1 i i ~ I I I 1 i I I I I I i ~ ~ I 1 I 1 I i 1 1 I ~ I I 1 i I i I 1 1 , i I I ~ I I I I i i ~ ~ ' ~~ 1 i i i . ~ I 1 i 1 I i LOG 6: MEASURED MATURITY C O !3 N N a ja 6 °. t~ v ~ O i I I I I I I I I I U I I I I I 1 1 { I 1 1 I 1 I I 1 t ~ I I I 1 1 I I I I I I 1 1 1 I i 1 1 I 1 1 I I 1 I 1 I I I 1 1 I I 1 I I I I 1 I I I I ~ I ~ i i ~ I I I 1 I I 1 I I 1 I I I I I I I I 1 I 1 I i ~ 00 1.0 ~o e.o a.o Io.o j o s to Is 10 0 10o alMl mu >w iwu i o ~~ .w ~~~ ~,~. ~.~ ..• •.• , -._ . _ TOC (xt%1 OIL N7TENTIAL 151) HYDROGEN MDEX IHI) NORMALIZED OIL CONTENT CALCULATED Y.Ro I VITRNITE ,_ _ ____. I __ __.. ____.. _ __I, _.. _- ___._. .. ____.__ ______.. _.. _.. _. .1. _._ Figure 1. Geochemical log of TOG, remaining potential (S2), kerogen type (HI), normalized oil content, and calculated and measured vitrinite reflectance. Humble Geochemical Services Division ~ l~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r r ~ ~ KEROGEN QUALITY Talisman Energy Y 18 0 -°' 16 o~ ~ 14 J a ~ 12 Z w H a 10 z 0 ~ 8 Q U °~ 6 0 ~ 4 Z Z ~ 2 W Type I Oil Prone usu. lacusfrine TYPE 11 Oil Prone (usu. marine) Mixed Type 11 / l/l Oil /Gas Prone 0 Organic Lean ~ I ° ~ ° ° o 0 r- ~ r- 0 0.5 1 Type 111 ° Gas Prone Dry n ras Prone 1.5 2 2.5 3 3.5 4 TOTAL ORGANIC CARBON (TOC, wt.%) -- Figure 2. Kerogen Quality 4.5 5 Humble Geochemical Services Division KEROGEN TYPE Talisman Energy 1000 900 800 700 v O H v 600 x E 500 X W Z Z W O 400 0 300 200 100 0 OXYGEN INDEX (OI, mg COZ/g TOC) Figure 3. Kerogen type Humble Geochemical Services Division ... U O H as O E X W O Z_ Z W O O 2 1 KEROGEN TYPE and MATURITY Talisman Energy ----- - -, Tmax (°C) Figure 4a. Kerogen Type and Maturity (Tmax) Humble Geochemical Services Division KEROGEN TYPE and MATURITY ' Figure 4b. Kerogen Type and Maturity (Tmax calculated %VRo) ' Humble Geochemical Services Division Calculated Vitrinite Reflectance Equivalent (CaLVReq.) i Humble Geochemical Services Division 380 430 480 530 580 ~ MATURITY (based on Tmax (°C)) _~ Figure 5a. Kerogen conversion and maturity (based on Tmax). A ~ ~ f~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ r a x w ~ 0 z z , 0 i` U D O a 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00 MATURITY (calculated vitrinite reflectance from Tmax) Figure 5b. Kerogen conversion and maturity (calculated %VRo from Tmax). Humble Geochemical Services Division Talisman Energy Humble Geochemical Services Division of Humble Instruments & Services, Inc. P.O. Box 789 Humble, Texas 77347 218 Higgins Street Humble, Texas 77338 Telephone:281-540-600 Fas:281-540-2864 Web site: www.humble-inc.com Email: humble humble-inc.com December 10, 2007 Client: Talisman Energy Attn: Nick Wilson Well Name: Amaguq #2 Introduction: Ten SWC samples are analyzed for Vitrinite reflectance thermal maturity (%Ro), visual kerogen and thermal alteration index determination (TAI). Maturity data indicate that these samples increase from the (Condensate and /or wet-gas window) zone into the `Dry gas window' zone (Table 1). Ro data are consistent with the TAI (Thermal Alteration Index or `spore color') and fluorescence data. Amorphous dominates over terrestrial kerogen in all 10 samples. Discussion: Vitrinite reflectance values increase from 1.15% to 1.68%. There is good organic recovery for visual study in all 10 samples. However, vitrinite is sparse in most of these samples and the desired 40 vitrinite particle readings could not be obtained in 8 samples. Vitrinite reflectance data quality is considered to be reasonably good in 6 samples, fair in 3 samples and poor in 1 sample. Palynomorphs, which allow for more confident TAI determinations, are found in only 1 sample. For samples without palynomorphs, the TAI values are based on the color of the amorphous kerogen, which is less reliable. Framboidal pyrite is common to abundant in 8 of these 10 samples (Table 3). This may be indicative of marine influence. The sulfate reducing bacteria activity on organic matter in marine deposits reportedly can result in this type of pyrite. It is normally most common in hydrogen rich (reducing) marine source rocks. No marine palynomorphs are noted in these samples. Fluorescence of pollen and spores is generally lost in the approximate vitrinite reflectance range of 1.0% to 1.1 %. No fluorescence is visible in these samples, which is consistent with this general guideline (Table 2). Vitrinite and TAI values are generally divided into the following categories of thermal maturity: Immature: Oil window maturity:. 0.02% to 0.60% 0.60% to 1.10% TAI up to 2+ (2.3) TAI 2+(2.3) up to 3+(3.3) TAI 3+ (3.3) TAI 4-(3.7) and higher Condensate and /or wet-gas window: 1.10% to 1.40% Dry gas window: 1.40% to 3.0 or 4.0% Dan Pearson Amaguq #2 40 35 Unknown Formation 6897' SWC ~ 30 Mixed Kerogen ~ 25 ~ ^ Average %Ro = 1.15 ~ 20 as Std. Dev. = 0.07 ~ 15 No. Pts. = 37 LL 10 ^ CavelSuppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 R 07-5059-215797 0 Humble Geochemical Services Amaguq #2 4U 35 Unknown Formation 7045' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.15 ~ 20 ~ Std. Dev. = 0.08 ~ 15 No. Pts. = 37 10 ^ CavelSuppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 O~ O~ O~ O O~ -~~ -~`l' -~~` ~~O ~~ O 1. 0< <o O O 'y D< <o w O p 07-5059-215798 Humble Geochemical Services Amaguq #2 4U 35 Unknown Formation 7235.1' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.20 ~ 20 ~ Std. Dev. = 0.07 i 15 No. Pts. = 14 I.L 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 07-5059-215799 Humble Geochemical Services ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Amaguq #2 4U 35 Unknown Formation 7245.2' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.20 ~ 20 ~' Std. Dev. = 0.07 ~ 15 No. Pts. = 20 10 ^ CavelSuppress? Vit. ^ RecyclOxid Vitrinite 5 ^ Inertinite 0 o° oti off` o o~ ~° ~ti ~~` ~.`O ~~ o ti o~ ~ ~ o ti o~ o w o ti• ti• ti• ti• ti• o• ~• '~• '~• '~• ~• p 07-5059-215800 Humble Geochemical Services ^ IIII^ III^ IIII^ II^ ^ ^ II^ ^ ^ II^ IIIII^ IIIII^ ~^ IIIII^ IIIII^ I^ III^ II^ Amaguq #2 4U 35 Unknown Formation 7365' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.34 ~ 20 ~ Std. Dev. = 0.10 i 15 No. Pts. = 26 LiL 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 o° off' o°` o o~ -~° -~~' ~°` ~`•° ~~ ~° ti~ tip` ti~ ~~ ~° ~ti ,~ o~ ~~ ~~ ao p 07-5059-215801 Humble Geochemical Services ^ ^~ ^^ ^^ ^t ^~ ^^ II^ ~^ ^^ ^^ ~^ ^^ ^ I^ ^^ ^^ ~^ ^~ Amaguq #2 4U 35 Unknown Formation 8440' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.63 ~ 20 ~ Std. Dev. = 0.12 ~ 15 No. Pts. = 10 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 p 07-5059-215802 Humble Geochemical Services Amaguq #2 4U 35 Unknown Formation 8495' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.64 ~ 20 ~ Std. Dev. = 0.19 i 15 No. Pts. = 4 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 07-5059-215803 Humble Geochemical Services Amaguq #2 40 35 Unknown Formation 8510' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.63 ~ 20 ~ Std. Dev. = 0.08 ~ 15 No. Pts. = 11 11. 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 0 oti off` o o~ ~° ~ti ~~, ~`•° ~~ ~° tiry ti~ ti~O ~~ ~° ~ti ~~` ~~ ~~ ~° R 07-5059-215804 Humble Geochemical Services ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Amaguq #2 40 35 Unknown Formation 8530' SWC ~ 30 Mixed Kerogen = 25 ~ ^ Average %Ro = 1.65 ~ 20 ~ Std. Dev. = 0.11 ~ 15 No. Pts. = 10 Ll. 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 o° o~ off` o o~ ~° ~ti ~~ ~`•° ~~ ~° ti~ ti~ ~~ ,~~ ,~° ,~ti ~~` ~`•° ~~ ~° R 07-5059-215805 O Humble Geochemical Services Amaguq #2 4U 35 Unknown Formation 8710' SWC ~ 30 Mixed Kerogen ~ 25 ~ ^ Average %Ro = 1.68 ~ 20 ~ Std. Dev. = 0.10 i 15 No. Pts. = 22 LL 10 ^ Cave/Suppress? Vit. ^ Recyc/Oxid Vitrinite 5 ^ Inertinite 0 o° ory off` o o~ ~° ~ti ~~ ~`•° ~~ ~° ti~ ti~ ~`•° ~~ ,~° ~ti ~~` ~~ ~~ ~° 07-5059-215806 Humble Geochemical Services Table 1 Dispersed Organic Matter Thermal Alteration, Kerogen Type and Total Compositional Analysis Talisman Energy % S our ce Ma teria l P rese rvati on Re cov ery %Kero gen Com p. Vltri nfte 0 y w W c j e x 'E « ~ c ' Iq . ~ ~ •C d ~ p c d ~ C d ~ a ~ a a d c ~ 'c v ~ U d ~ ° ~ v i a w E ~ ~ E a = > ~ x c ~ Y ~ d ~ e ~ o 0 a i < o E ~ . c ~' ~ 1 o. °' ~' LL ar c E ° ° g ° ° ° ~ > d z m r W a rn v °c Z m ~ o E ~, '= o ~. ~ e ~ ,, g ' ~ a r m ' $ v ° e e LS ~ 5 0 ~ 9 c9 d a v a ¢ iL d x ~ o v ¢ ~o o. t, e a a d > a i '0 m ° c a i d c o 'c E o 0 f- at ~ Comments 07-5059-215797 Amaguq#2 6897 swc B'1 3.3? 78__ 3_ 19 _ X_ _ _ _X _ 15 _ 4 1 80 AO 1.17 37 1.15 07-5054-215798 Amaguq #2 _ 7045 swc_ B? 3.37 80 1 19 ~ _ X X _ IS _ 4 t 80_ 40 1.17 37 1.15 07-5059-215799 Amaguq #2 7235.1 swc_ B? 3.3? 94 2_ 4 _ _ _ __ _ X i X _ 1 3 3 93 18 1.30 14 1.20 7-5059-215800 Amaguq.#2 7245.2 swc B? 3.3? 94 2 4 X X I 3 l tr 95 29 1.30 20 1.20 07-5059-215801 Amaguq #2 7365 _swc_ B7 _ 3.3? 95 I __4 _ _ X _ __ X_ ' I _ _ 3 l ' 95 32 1.40 26 L34 07-5059-215802 _Amaguq #2 8440 swc B, DB_DG_ 3.3, 3.7 95 1 4 __ tr X _ X_ _ tr _ 4 l _ 95 l6 1.70 10_ 1.63 very rare palynomorphs 7-5059-215803 _Am~u~#2 _ _ 8495 swc _B?, D_BD_G_? _3.37, 3.7? 97 _ 1 2 __ __ _ X_ X _ _ tr _ 2 tr i ~ 98 15 1.95 4 1.64 7-5059-2!5804 Amaguq #2 8510 swc B?, DBDG_? 3.3?, 3.7? 95 3 2 _ _ X X 1 _ 1 tr_ 98 14 L75 11 1.b3 07-5059-215805 Amaguq #2 8530 swc B?, DBDG? 3.3?, 39? 78 20 2 X _ X _ 1 1 tr _ 98_ 21 1.78 10 L65 07-5059-215806 Amaguq #2 $710 swc B?, DBDG? 3.3?, 3.7? 96 1 3 X X 1 2 tr 97 31 1.81 22 1.68 tr =trace TAI cal 1=Unaltered 3+ or 3.5 Color Abrbreviations: 1+or 1.5 4=Strong alteration GLY Green-Light Yellow Brown 2=Slight alteration 4+ or 4.5 Y Yellow Dark Brown-Dark Gray 2+ or 2.5 S=Severe alteration YO Yellow-Orange Dark GrayBlack 3=Moderate alteration OB Orange-Brown Black LB Light Brown Humble Geochemical Services ~ ~ ~ l~ ~ l~ l~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ l~ Table 2. Kerogen Fluorescence colors and brightness intensities (subjective determinations) Talisman Energy 0 = No fluorescence noted 1 =very low intensity 2 =low intensity 3 =medium intensity 4 =high intensity 5 =very high intensity G =Green Y =Yellow O =Orange B =Brown NGS ID Well Depth Type Pollen/Spores Amorphous Mounting Medium Name ft. G Y O B G Y O B G Y O B 07-5059-215797 uq #2 Am ag 6897 swc ? ? ? ? 0 0_ 0 0 1 _ 07-5059-215798_ _ _ _ Amaguq #2 7045 _ swc ? ? ? ? 0 0 0 0 1 07-5059-215799_ Ama~ucL#2 _ 7235.1 swc ? ? ? ? 0 0 0 0 1 07-5059-215800 _ Am~ug #2 7245.2 _ swc ? ? ? ? 0 0 0 0 1 07-5059-215801 Amaguq #2 7365 __ swc ? ? ? ? 0 0 0 0 1 07-5_059-215802 Amaguq #2 8440 swc 0 0 0 0 0 0 0 0 1 07-5059-215803 Am~uq_#2 8495_ swc ? ? ? ? 0 0 0 0 1 07-5059-215804 Amaguq#2 8510 swc ? ? ? ? 0 0 0 0 1 07-5059-215805 Amaguq #2 8530 swc ~ ? ? ? ? 0 0 0 0 1 07-5059-215806 Amaguq #2 8710 swc ? ? ? ? _ 0 0 0 0 1 Humble Geochemical Services Table 3. Pyrite types and abundance in kerogen Talisman Energy 1 =very rare 2 =rare 3 =common 4 =abundant 5 =very abundant HGS ID Well Depth Type Pyrite types Name ft. Finely Disseminated Euhedral Framboidal 07-SOS9-215797 Amaguq #2 6897 swc 3 3 2 07-SOS9-2IS798 _____ _ __Ama~u~#2 7045 swc 3 _ 3 2 07-5059-215799 Amaguq #2 7235.1 swc 3 3 4 07-5059-215800 _ Amapu~c #2 _7245.2 swc__ _ 3 4 3 07-5059-21.5801__ AmaguQ #2 7365 _ _ swc 3 S 3 07-SOS9-215802 Amaguq #2 _ 8440__ swc 3 3 3 07-5059-215803 Amaguq #2__ _ 8495 swc 4 3 4 _07-5059-215804_ __Ama~ucL#2 8510 swc 4 4 3 07-SOS9-215805 Amaguq #2 8530 swc __ 3 3 4 07-5059-215806 Amaguq #2 8710 swc 4 4 3 Humble Geochemical Services ~ ~s ~ ~ ~ ~ ~^s ~ ~ ~ s ~ ~ ~ ~ ~ ~ ~ ~ Table 4. Individual Reflectance Readings HGSID - 5- 5 8 7-5 59-2 7 -5 5- 5 - 5- 15 0 -5 2 8 - 5- 4 Well Name Ama u #2 Ama u #2 Ama u #2 Ama u #2 Ama u #2 Ama u #2 Ama u #2 Ama u #2 Ama u #2 De th ft. 8897 7045 7235.1 7245.2 7365 8440 8495 8510 8530 Indigeno Indigeno Indigeno Indigeno Indigeno Indigeno Indigeno Indigeno Indigeno All Data All Data All Data All Data All Data All Data All Data All Data Atl Data ~ Data us Data us Data us Data us Data us Data us Data us Data us Data 1.02 1.02 1.02 1.02 1.09 4.09 1.03 1.1 1.14 1.14 1.41 1.41 1.42 1.42 1.53 .5 0.85 1.5 .1.03 1.03 1.02 1.02 1.11 1.11 1.07 1.1 1.16 1.16 1.45 1.45 1,56 1.56 1.56 1.56 0.94 1.54 1.04 1.04 1.04 1.04 1.15 1.15 1.1 1.12 1.19 1.19 1.59 1.59 1.77 1.77 1.56 1.56 1.5 1.56 1.04 1.04 1.04 1.04 1.15 1.15 1.1 1.12 1.2 1.2 1.61 1.61 1.82 1.82 1.57 1.57 1.54 1.57 1.04 1.04 1.05 1.05 1.15 1.15 1.12 1.13 1.21 1.21 1.63 1.63 1.86 1.6 1.6 1.56 1.64 1.06 1.06 1.05 1.05 1.17 1.17 1.12 1.13 1.27 1.27 1.65 1.65 1.88 1.61 1.61 1.57 1.64 1.06 1.06 1.06 1.06 1.2 1.2 1.13 1.16 1.27 1.27 1.66 1.66 1.89 1.62 1.62 1.64 1.67 1.08 1.08 1.07 1.07 1.2 1.2 1.13 1.17 1.27 1.27 1.74 1.74 1.89 1.67 1.67 1.64 1.73 1.09 1.09 1.08 1.08 1.21 1.21 1.16 1.18 1.3 1.3 1.75 1.75 1.93 1.67 1.67 1.67 1.81 1.11 1.11 1.09 1.09 1.22 1.22 1.17 1.18 1.31 1.31 1.78 1.78 1.95 1.72 1.72 1.73 1.81 1.12 1.12 1.1 1.1 1.26 1.26 1.18 1.18 1.31 1.31 1.8 2.14 1.8 1.8 1.81 1.13 1.13 1.11 1.11 1.27 1.27 1.18 1.19 1.33 1.33 1.8 2.25 2.07 1.81 1.14 1.14 1.11 1.11 1.32 1.32 1.18 1.22 1.35 1.35 1.82 2.27 2.18 1.92 1.15 1.15 1.12 1.12 1.33 1.33 1.19 1.22 1.35 1.35 1.84 2.29 2.32 1.95 1.15 1.15 1.12 1.12 1.41 1.22 1.28 1.36 1.36 1.85 2.32 1.98 1.15 1.15 1.13 1.13 1.59 1.22 1.28 1.37 1.37 1.85 2.07 1.15 1.15 1.13 1.13 1.69 1.28 1.29 1.37 1.37 2.08 1.16 1.16 1.13 1.13 1.83 1.28 1.29 1.38 1.38 2.16 1.16 1.16 1.14 1.14 1.29 1.3 1.42 1.42 2.21 1.16 1.16 1.14 1.14 1.29 1.34 1.43 1.43 2.34 1.17 1.17 1.15 1.15 1.3 1.43 1.43 2.41 1.17 1.17 1.16 1.16 1.34 1.43 1.43 1.17 1.17 1.16 1.16 1.45 1.44 1.44 1.17 1.17 1.18 1.18 1.52 1.45 1.45 1.18 1.18 1.18 1.18 1.61 1.48 1.48 1.18 1.18 1.19 1.19 1.63 1.49 1.49 1.19 1.19 1.19 1.19 1.71 1.56 1.19 1.19 1.2 1.2 1.79 1.61 1.19 1.19 1.2 1.2 1.96 1.62 1.2 1.2 1.2 1.2 1.78 1.21 1.21 1.21 1.21 1.78 1.22 1.22 1.21 1.21 1.81 1.22 1.22 1.23 1.23 1.23 1.23 1.27 1.27 1.24 1.24 L3 1.3 1.26 1.26 1.3 1.3 1.28 1.28 1.31 1.31 1.37 1.37 1.44 1.41 1.49 1.67 Avera a %Ro 1.17 1.15 1.17 1.15 1.30 1.20 1.30 1.20 1.40 1.34 1.70 1.63 1.95 1.64 1.75 1.63 1.78 1.65 Standard Dev. 0.0T 0.08 0.07 0.07 0.10 0.12 0.19 0.08 0.11 # of Points 40 37 40 37 18 14 29 20 32 26 16 10 15 4 14 11 21 f 0 Humble Geochemical Services -5 59- 0 Ama u #2 8710 Indlgeno All Data us Data 1.51 1.51 1.54 1.54 1.55 1.55 1.58 1.58 1.59 1.59 1.63 1.63 1.63 1.63 1.64 1.64 1.64 1.64 1.66 1.66 1.7 1.7 1.71 1.71 1.72 1.72 1.72 1.72 1.72 1.72 1.73 1.73 1.74 1.74 1.76 1.76 1.76 1.76 1.79 1.79 1.85 1.85 1.87 1.87 1.91 1.93 2.01 2.1 2.12 2.19 2.21 2.23 2.24 1.81 1.68 0.10 31 22 Humble Geochemical Services CORE ANALYSIS REPORT FOR TALISMAN ENERGY INC. TALISMAN AMAGUQ #2 AMAGUQ #2 ,ALASKA ~b~ -1~~/ ¢ 53S~ E~EiVED R SEP 0 6 2007 Alaska Oil & Gas Cons. Commission Anchorage THESE ANALYSES, OPINIONS OR INTERPRETATIONS ARE BASED ON OBSERVATIONS AND MATERIALS SUPPLIED BY THE CLIENT TO WHOM; AND FOR WHOSE EXCLUSIVE AND CONFIDENTIAL USE; THIS REPORT IS MADE. THE INTERPRETATIONS OR OPINIONS EXPRESSED REPRESENT THE BEST JUDGEMENT OF CORE LABORATORIES (ALL ERRORS AND OMISSIONS EXCEPTED); BUT CORE LABORATORIES AND ITS OFFICERS AND EMPLOYEES, ASSUME NO RESPONSIBILITY AND MAKE NO WARRANTY OR REPRESENTATIONS, AS TO THE PRODUCTIVITY, PROPER OPERATIONS, OR PROFITABLENESS OF ANY OIL, GAS OR MINERAL WELL OR FORMATION IN CONNECTION WITH WHICH SUCH REPORT IS USED OR RELIED UPON. CORE LABORATORIES IS COMMjT"fED TO CUSTOMER SATISFACTION AND WELCOMES YOUR FEEDBACK. YOU CAN E-MAIL THE GENERAL MANAGER WITH YOUR COMMENTS ATPSCANADA.FEEDBACRnn CORELAB.COM. 0 t~ r ~' E I# qt~~ ~ ~3 "~ ~ ~ ~t ~= ~J Core Lab RESERVOIR OPTIMIZATIUN May 11, 2007 Talisman Energy Inc. 3400, 888 - 3`d Street S.W. Calgary, Alberta T2P SCS Attention: Mr. Jason Lavigne Subject: TALISMAN AMAGUQ #2 (SIDEWALLS) Our File NLtmber: 52131-07-0118 Petroleum Services Division Core Laboratories Canada, Ltd. 2810 - 12 Street N.E. Calgary, Alberta, Canada T2E 7P7 Tel: (403) 250-4000 Fax: (403) 250-5120 www.corelab.com Rotary sidewall coring equipment and water base mud were used to core the subject well. The samples were labeled at the wellsite and transported to our Calgary laboratory for analysis. Representative samples were selected on a lithological basis and analyzed as described below. Conventional, Plug Type Analysis (Humidity Dried) Seven samples (25.4 mm diameter) were cleaned using cooled toluene and dried in a humidity oven at 60° Celsius and 50% relative humidity. Analysis includes porosity by Boyle's Law technique using helium as the gaseous medium and horizontal permeability to air. The results of these analyses are reported in both tabular and graphical form. Samples outside the 95% confidence interval (three standard deviations) on the Permeability X Porosity crossplot have been identified and have been checked and re-analyzed to ensure data integrity. Thank you for the opportunity to be of service. Yours truly, CORE LABORATORIES CANADA, LTD. Gam'`-- ....~. `~~~ David J. Brooks Supervisor, Routine Rock Properties DJB/qz enclosures CORE LABORATORIES Company TALISMAN ENERGY INC. Field AMAGUQ #2 File No. 52131-07-0118 Well TALISMAN AMAGUQ #~ Formation Date 2007-03-14 Location Coring Equip SIDEWALL Analysts DJB Province ALASKA Coring Fluid WATER BASE MUD Core Dia 1 inch CORE ANALYSIS RESULTS SAMPLE NUMBER DEPTH ft PERMEABILITY (nnAXimUn!) Kair mD POROSITY (HELIUM) y, BULK DENSITY (gm/cc) GRAIN DENSITY (gm/cc) DESCRIPTION SP 3 6845.0 0.12 9.5 2.40 2.65 ss of carb dol SP 4 6847.0 NA SP 18 6897.1 NO SAMPLE SP 17 6913.0 NO SAMPLE SP 16 7045.0 0.09 9.8 '2.39 2.65 ss of doi SP 15 7067.0 NO SAMPLE SP 14 7178.6 NA SP 13 7197.1 0.08 10.7 2.40 2.67 ss of dol SP 12 7202.0 0.07 9.5 2.41 2.66 ss of dol SP 11 7205.0 <0.01 1.7 2.61 2.66 ss vi dol SP 10 7215.0 NA SP 2 7220.0 0.09 13.2 2.29 2.64 ss of SP 9 7235.1 NA SP 8 7245.2 NA SP 7 7365.0 NA SP 6 7387.0 0.08 7.9 2.44 2.65 ss of dol glauc lam SP 5 7388.2 NA SP 1 7390.0 NA rage ~ cr i CODE KEY -DESCRIPTIONS ACA =Removed for advanced core analysts anhy =Anhydrite arg = Argillaceous AST =Appears similar to bit =Bitumen bk = Bi oak ~c =Coarse talc =Calcite (calcareous) carb =Carbonaceous cbl =Cobble cgl =Conglomerate cht = Chert coal =Coal/coal inclusion coq =Coquina dol =Dolomite f =.Fine_ fc =Filter cake on suface of core sample FD =Full diameter analysis including three directional permeabilities, porosity and densities foss =Fossil (fosslliferous) frac =Fracture (undifferentiated) fri =Friable glauc = Glauconite (glauconitic) grnl =Granule gyp =Gypsum hal =Halite (salt) hfrac =Horizontal fracture i = Intercrystalllne IFD =Inner Full Diameter (Full diameter sample is drilled from the bulk portion of the core in the vertical direction for permeability and porosity measurements) fncl =Inclusions lam =Laminae (laminated) Is =Limestone Iv =Large vug m =Medium mi =Mud Invaded my =Medium vug NA = Nnt analyzed by request NR =Not received OB =Overburden sample (permeability and porosity measured at net overburden stress) ool =Oolitic pbl =Pebble PFD =Preliminary Full Diameter sample ppv =Pinpoint vug PR =Preserved for future studies PSA =Particle size analysis PSP =Preliminary Small Plug sample pyr =Pyrite (pyritic) pyrbit Pyrobitumen ru =Rubble SA =Sieve analysis sdy =Sandy SEM =Scanning electron microscope analysis sh =Shale shy =Moderately shalt' (20% -40%) sid = Siderite sltst = Slltstone sift' = Slity SP =Small plug (sample drilled from core in maximum horizontal direction and parallel to bedding plane where possible) permeability porosity, and grain density are measured SPA = (Prefix A) Horizontal matrix permeability measured by pressure decay profile permeametry through a probe tip due to sample quality SPH =Humidity analysis of small plug sample at 60 degrees Celsius and 50 % relative humldty SPP =Small plug from preserved section of the core SPT =Small Plug used for tracer analysis ss =Sandstone ssdy =Slightly sandy (<20%) sshy = Slightly shalt' (<20%) sty = Stylolite (lc) suit =Sulphur sv =Small vug TEC =Thermal Extraction Chromatography to determine oil richness T5 =Thin section uncons =Unconsolidated vc =Very coarse of =Very fine vfrac =Vertical fracture VIS =Viscosity of oil measured VOB = Vertical overburden sample (vertical permeability measured at net overburden stress) vshy = Very shalt' (>40%) VSP =Vertical small plug drilled from whole core to measure vertical permeability (and occasionally porosity) vug = Vuggy (vuggular) ws =Water sand XRD = X•ray diffraction * =Data unavailable due to pobr sample quality 10240 =Permeability >10 Darcles, (maximum routine permeability measurement) Permeability vs Porosity 10 _..~. ~ t Log(Y) _ .0449* X -1.5138 ~ 1 = 0 103 Correlation Coef ---- . . X t4 ~ ---~ .~ > -~--- + r q~i w o N +- ~ p 0.1 0.01 0.0 4.0 8.0 12.0 Helium Porosity: ~o TALISMAN ENERGY INC. TALISMAN AMAGUQ #2 AMAGUQ #2 FINAL SELECTED SAMPLES (6845.0 - 7390 .0 ft) Core Laboratories Canada Ltd. 16.0 20.0 -LEGEND - CORE ANALYSIS REPORT FOR TALISMAN ENERGY INC. TALISMAN AMAGUQ #2 AMAGUQ #2 ,ALASKA ~~d~ELIf~INARY REF~RT .,-(~,t~~~ Y AND PERMEARli.ITY ~IA~.L~. ~E~Ia~SENT P~EPSURE~~ENTS ®N ~'~aRTIAl.L'Y EXTRACTED S~,~J~~LE" :JN~': THESE ANALYSES, OPINIONS OR INTERPRETATIONS ARE BASED ON OBSERVATIONS AND MATERIALS SUPPLIED BY THE CLIENT TO WHOM; AND FOR WHOSE EXCLUSIVE AND CONFIDENTIAL USE; THIS REPORT IS MADE. THE INTERPRETATIONS OR OPINIONS EXPRESSED REPRESENT THE BEST JUDGEMENT OF CORE LABORATORIES (ALL ERRORS AND OMISSIONS EXCEPTED); BUT CORE LABORATORIES AND ITS OFFICERS AND EMPLOYEES, ASSUME NO RESPONSIBILITY AND MAKE NO WARRANTY OR REPRESENTATIONS, AS TO THE PRODUCTIVITY, PROPER OPERATIONS, OR PROFITABLENESS OF ANY OIL, GAS OR MINERAL WELL OR FORMATION IN CONNECTION WITH WHICH SUCH REPORT IS USED OR RELIED UPON. CORE LABORATORIES IS COMMITTED TO CUSTOMER SATISFACTION AND WELCOMES YOUR FEEDBACK. YOU CAN E-MAIL THE GENERAL MANAGER WITH YOUR COMMENTS ATPSCANADA.FEEDBAC%nn CORELAB.COM. CORE LABORATORIES Company TALISMAN ENERGY INC. Field AMAGUQ #2 File No. 52131-07-0118 Well TALISMAN AMAGUQ #2 Formation PRELIMINARY SELECTED SAMPLES Location Coring Equip SIDEWALL Analysts DJB Province ALASKA Coring Fluid WATER BASE MUD Core Dia 1 inch CORE ANALYSIS RESULTS SAMPLE NUMBER DEPTH ft PERMEABILITY {MAXIMUM) Kair mD POROSITY (HELIUM) x BULK DEiJSi i r (gm/cc) GRAIN DENSITY (gm/cc) DESCRIPTION PSP 3 6845.0 0.10 9.2 2.41 2.65 PSP 4 6847.0 PSP 18 6897.1 NO SAMPLE PSP 17 6913.0 NO SAMPLE PSP 16 7045.0 0.06. 9.4 2.40 2.65 PSP 15 7067.0 PSP 14 7178.6 PSP 13 7197.1 0.07 10.7 2.38 2.66 PSP 12 7202.0 0.06 9.4 2.41 2.66 PSP 11 7205.0 <0.01 1.1 2.62 2.65 PSP 10 7215.0 PSP 2 7220.0 0.09 13.1 2.30 2.64 PSP 9 7235.1 PSP 8 7245.2 PSP 7 7365.0 PSP 6 7387.0 0.08 7.9 2.44 2.65 PSP 5 7388.2 PSP 1 7390.0 Page 1 of 1 re CODE KEY - DESCRIPTIONS bit bk c talc Garb cbl cgl cht coal coq dot f fc FD hat hfrac i IFD lncl = Removed for advanced core analysis = Anhydrite = Argillaceous = Appears similar to Bitumen = Break Coarse = Calcite (calcareous) = Carbonaceous = Cobble = Conglomerate = Chert = Coal/coal inclusion = Coquina = Dolomite _ .Fine = Filter cake on suface of core sample = Full diameter analysts Including three directional permeabilities, porosity and densities = Fossil (fossiliferous) = Fracture (undifferentiated) = Friable Glauconite (glauconitic) = Granule = Gypsum = Halite (salt) = Horizontal fracture = Intercrystalline = Inner Full Diameter (Full diameter sample is drilled from the bulk portion of the core in the vertical direction for permeability and porosity measurements) = Inclusions = Laminae (laminated) Is =Limestone Iv =Large vug m =Medium mi =Mud invaded my =Medium vug NA =Not analyzed by request NR =Not received OB =Overburden sample (permeability and porosity measured at net overburden stress) ool =Oolitic pbl =Pebble PFD =Preliminary Fuli Diameter sample ppv =Pinpoint vug PR =Preserved for future studies PSA =Particle size analysis PSP =Preliminary Small Plug sample pyr =Pyrite (pyritic) pyrbit = Pyrobitumen ru =Rubble SA =Sieve analysis sdy =Sandy. SEM =Scanning electron microscope analysis sh =Shale shy =Moderately shaly (20% - 40%) sid = Siderite sitst = Siltstone slty =Silty SP =Small plug (sample drilled from core in maximum horizontal direction and parallel to bedding plane where possible) permeability porosity,. and grain density are measured SPA = (Prefix A) Horizontal matrix permeability measured by pressure decay profile permeametry through a probe tip due to sample quality SPH =Humidity analysts of small plug sample at 60 degrees Celsius and 50 % relative humidty SPP =Small plug from preserved section of the core SPT =Small Plug used for tracer analysis ss =Sandstone ssdy =Slightly sandy (<20%) sshy =Slightly shaly (<20%} sty = Stylolite (ic) sulf =Sulphur sv =Small vug TEC =Thermal Extraction Chromatography to determine oil richness T5 =Thin section uncons =Unconsolidated vc =Very coarse of =Very fine vfrac =Vertical fracture VIS • =Viscosity of oil measured VOB =Vertical overburden sample (vertical permeability measured at net overburden stress) vshy =Very shaly (>40%) VSP =Vertical small plug drilled.from whole core to measure vertical permeability (and occasionally porosity) vug = Vuggy (vuggular) ws =Water sand XRD = X-ray diffraction =Data unavailable due to pobr sample quality 10240 =Permeability >10 Darcfes, (maximum routine permeability measurement) Permeability vs Porosity 10 ~_. S t ~ 1 Log(Y) _ .0517* X -1.6377 Correlation Coef. = 0.223 :.:. X cv A d a w N p 0.1 I 0.01 0.0 4.0 8.0 12.0 16.0 20.0 Helium Porosity: ~~o TALISMAN ENERGY INC. -LEGEND - TALISMAN AMAGUQ #2 AMAGUQ #2 PRELIMINARY SELECTED SAMPLES (6845.0 - 7390.0 ft) Core Laboratories Canada Ltd. .~ ~,,, rc - :^° I ~ t r - 4" _a +~ ~ .o ~~ ; 4~„ +~ ..6.c ;;J", 'S l r, 3 N ~ ~ Q Q Introduction Fifteen (15) sidewall cores from the Amaguk #2 well were sent to Calgary for rush analysis. All intact cores of sufficient length had 24 hours of cleaning and then routine porosity and permeability measurements were taken. Three (3) samples from representative sandstone intervals (two Torok and one Kuparuk) were selected for thin section analysis. The two Torok samples at 6847ft and 7215ft were chosen due to high gas readings while drilling. Photomicrographs of the thin sections were taken and point counts were conducted to help quantify the mineralogical constituents and determine reservoir quality. Routine Core Analysis (Preliminary) Plug # Depth (ft) Km~ (air) Porosity (He) (mD) (%) Bulk Density (g/cc) Grain Density (g/cc) 3 6845.0 0.1 9.2 2.41 2.65 4 6847.0 18 6897.1 0.05 9.4 2.44 2.69 17 6913.0 NO SAMPLE 16 7045.0 0.06 9.4 2.40 2.65 15 7067.0 NO SAMPLE 14 7178.6 13 7197.1 0.07 10.7 2.38 2.66 12 7202.0 0.06 9.4 2.41 2.66 11 7205.0 < 0.01 1.1 2.62 2.65 10 7215.0 2 7220.0 0.09 13.1 2.30 2.64 9 7235.1 8 7245.2 7 7365.0 6 7387.0. 0.08 7.9 2.44 2.65 5 7388.0 1 7390.0 Thin Section Point Count Data Quartz Qtz-mica Lithics Mudstone Lithics Feldspar (Kspar) Detrital Dolomite Chert Mica I Heavies I Illitic Clay Fe Dolomite Bitumen Kaolinite Grain Molds Fracture Pores Microporosity Total 6847.Of~ Torok 36.6 19.0 7.0 3.3 0.6 4.0 3.3 1.0 1.0 0.3 0.0 0 12.0 4.3 1.6 0.6 0.3 (Zrcon) 3.0 2.0 0.0 0.0 Total ~ =5.0 99.9 7215.Oft Torok 7.6 4.3 0.3 0.0 2.3 (Z~rCOn) 1.6 2.3 0.0 0.0 Total ~ =4.9 99.9 7390.Of~ Kuparuk 53.6 3.3 0.3 0.0 0.0 1.0 2.3 0.3 3.0 0.3 1.3 1.0 6.6 5.3 2.6 1.6 10.6 (Tourmaline) 3.6 2.0 0.6 0.6 Totals=6.8 99.9 TOROK Sandstones 0900-0824 Sn, ddY., m gy, blky, sbfiss, shy ip. SLTST, 40°4, m brnlgy, fm, erthy text, grdq to vt er ss. 8024-0880 SS, m Drnlgy, fm, upper vfJOwer f gr, qtz pred with mnr Inhic grs, some gleu & carb inct, sbrd, mod w srt, lr city Clay cmL 18-20% por, 25mD perm, no rls stop, ne nor, v weak 8 slow, pale wh s[rm cut, no apprec show. poorer sample quality at bottom of section. 8880.8890 SH, 80%, m gy, blky, sbliss, slry Ip. SLTST, 40%, m DrNgy, lm, erthy tsxt, grdg to N gr ss. 6690 Rare black heavy oil seen on shaker -bright light yellow preen Huorescence. 8890.8930 55, 30-00 % , It•m brnlgy, fm-Iri, upper vl-bwer 1 gr, qlz 8: Ihhic grs, sbrd w srt, stry clay cmt, 72-tSY, por, <SmD perm, no vis slog, no nor, no apprec show, interbeded SH, as end SLTST, as ~ Rotary Sidewall Core --- Thin Section O ti Cfl a~ L O Q Y Y ~' U - (p O ~ 'p C ~+ ~ O ~L U ^~ W U ~ ~ .~ Y ~ O ~ U• ~ ~ c E c~ ~ o ~ 7 ~ U p ~ ~ -p O "-' N ~ O ~ ~ (0 i ~ ~ ~ U Q ~ ~' U N ~ Q~ ~ '~ ~ ~oa~i~ ~oN.~ ~- ~ ~ _~ o .~ °~ ~,~o~ ~ Qm ~~~E c ~ ~ n. .o~~~ ~ ~ U ~ Q ~ C N ~^ f0 ~ ~ ~ O ~ ~ •~ ~~ ~ N C O ~ ~ ~ U p ~ ~ ~ ~ ,U ~ ~C (Q ~ C U +r (6 (6 ~ E o c~ ~ ~ c o c ~ c~ (n ~ L yi ~ ~ ~ ~ C ~ ~ ~, f0 (II C ~ ~ 0 L Lithic sandstone wacke composed largely of quartz, Ithic grains and feldspar. The pore system is a combination of secondary grainmolds (gm) and secondary intergranular pores (2BP) after dissolution of matrix clay. Note the partially leached feldspar grain (f) and ferroan dolomite cement (stained blue), the latter of which has nucleated on a detrital dolomite grain (dol). The black opaque material is likely a combination of organic material and clay. Scale is 100µm. Torok 6847.Oft Torok 6847.Oft Sparse pore system comprised largely of secondary grain molds. Note the high degree of sutured grain boundaries (accentuated by black opaque reside). This is evidence of compactional destruction of the pore system. Note also the pore-occluding ferroan dolomite cement (stained dark blue). The Scale is 100µm. TOROK Sandstones 5 x SE)j hrn ~ ~ 200 .9De~silyjglcr 2 .. _ C a 5~ -, m z .a z'vo f f - l , .f~. ~ _ j. ~ ~ 3 }, . f *r 1 -{ rt , _ 4_. ' _ _ ;. 1/ _. .._ ~ i ii c ~ _~ ~ l ~., ~ , _ ~ ~ I I~ r - ' ~J I _' , ~~ r r r ,,'~ h I } r ~ ~ 1 s ~, i _ _ ( ! i : i 1 ! ~ t + i .~ ' ( 1 ~ t § ~ A _ . C r _~~ -k '-~ fI ~ _ ~ ~1 i I - J I , iD20.704] SH, 60X, mdk gy, blky, mmlc Ip, erthy text, loe sl cerb. SLTST, ~0%, m gy, 3yVbrn, Im-sri, erg, arthy text. poor sample quallry, abnt nut plug LCM. r0,f,3-7075 SS, m brn/gy, fri, lower of gr, slty, >h R xhM lirhic nom: eMA, w+n, slty el.y :mt, 8.1U% por, <5mD perm, no stng, no epprec show. Intbdd SN B SLTST, gen ae. '075.7100 SH, 70%, m gy, blky, abuse, edhy ext, v slty, grdg to slut. SLTST, DO%, m gy, 11ky, erthy text. '100.7110 SH, 50%, aa, mnr ss strgs S Intbs, re. SLTST, a; erg, grdg to slty clyst. r710-7170 SH, BOY,, m gy, blky, abnss, edhy ext, v slty, grdg to sttst. SLTST, 00%, m gy, 11Ny, edhy text. SS, 10%, molt 6rnlgy, frl. ower vl gr, slry, qtz B Ilthlc grs, sbrd, w ad, 10-12% por, slry clay cmt, <5mD perm, ns. ~ Rotary Sidewall Core TOROK Sandstones 7110-7160 SLTST, BO%, m brnlgy, sit, sity ciysl, corny c, grdg to W gr ss. SH, 10%, ad 7780.7170 SLTST, 50%, gen, as SH, m gy, biky, sbllss, enhy text, v slry, grdg to altar 7770.7182 SH, 70%, dk•m gy, blNy, sMls:, cart tp. SLTST, 3074, as. 7782.7190 55, It•m brn, brnlgy, Irl, upper Waowvr 1 gr, ak pod, mnr Iithlc grs, sbrd, w srt, mnr sil clay cmt, 70.12% pot, c5m0 perm, no vis sing, no Ibr, v stow pNs wh Nrm eut, no ras ring. 7190-7210 55, m brnlgy, upper W gr, ea, ine in sity unt. 10-12% poL D Derm a4 no appnc show, as 7210.7220 55, mdk brnlgy, Im, upper W-lower f gr, qiz 8 mnr lithic gn, sbrd, w an, sity clay cmt, 12-15% pot, <Sm0 perm, nc 7220-72]3 SS, m hrn, m-0N brnlgy, aa, 12-i5y. pot, P Perm, tr oil slog, patchy h yN omg flor, cW, as HRZ 7233 tt MD (•7137.7 tt Subsea) 723}72505H, ~, dk gy, blky, sbplty, sb0ss, waxy Istr, Barb Ip, erthy text, high org content. SLTST, 70%, h-m gy, hd, uthy Uxl, SI calt, ff 7:S strg9. 7250-7260 SH, 00%, dk gy, m-0k gnlgy, blky, waxy Isfr. SLTST, 20%, sa 7260-7290 SN, 90%, mCk gy, gytbrn blky, enhy text, lams, strlatlons 8lollatbns, sity ip, pressure conteas, abndt org maL SLTST, 10%, m 9Y, blky, fm. -~ Rotary Sidewall Core -~- Thin Section Lithic sandstone comprised largely of quartz, lithic sedimentary rock fragments (metamorphosed) and detrital dolomite. The pore system is a combination of secondary grain molds (larger pores) and small secondary intergranular pores. The permeability is low. Scale is 200µm. Torok 7215.Oft ~ ~ ~ ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Torok 7215.Oft Large secondary grain molds after the dissolution of feldspar grains. Note the high amount of dark clay (probably illitic?). Some of this clay occurs as lithic mud clasts that have been compacted between more resistant quartz grains resulting in psuedomatrix which has effectively sealed off pore throats. This sample also contains abundant detrital dolomite (dol). Scale is 100µm. Torok 7215.Oft Secondary intergranular (2BP) and grain moldic pores (gmo) in a lithic-rich sandstone. Note the ferroan dolomite overgrowths (stained dark blue) nucleated on detrital dolomite grains (dol) and the quartz overgrowth cement (qtz). The darker brown grains are deformed mudstones. The blotchy yellow patches are excess feldspar stain that has washed off during the slide preparation. Scale is 50µm. KUPARUK Sandstone 7290.7310 SH, dk gy, Demg mAk gylbrn, blky, loliated, erthy text, some cart, abnt org mat, mnr brnlgy slut. 7310-733D SH, 80Ye, m4k gy, aa, Elsa, carb Ip, hl org content. SLTST, 20%, 14m brnlgy, molt, tm, erthy text, cslc Ip, ady. 7330-7310 SH, 90%, dk gy, charcoal, blky, flss, lam 8 foliations, carb Ip, abnt org met. SLTST, tOY., as 7340-7380 SH, m-0k gy, gylbn, sbply, }Iss, abndt org emt, waxy Intr. 7380-7370 SH, 80%, mdk gy, blky, arttry text, hi org content, sdy incl, of-m gr, tr pyr. SLTST, 407., m gy, gylbrn, sft, erg, stty ctyst, sdy. 7370-7385 SH, 80°k, m-0k gy, gylbrn, blky, aa, erthy text, carb ip, sdy, Ise t•m gr qtz, w rdd. SLTST, 40% ,erthy text. KUPARUK 738b tt MO (-7289.7 tt Subsea) 7385-7400 SS, It brnlgy, gynah, brlt, upper vl-lovrer t gr, qtz arende, sbang~sbM, mnr sil clay cmt, 12-1 S% por, streaky por to 18%, cSmD per, no slog, mnrl Ilor, no apprec cut. -~ Rotary Sidewall Core -- Thin Section ~~/~ A- 1 ~ ` • .R~~ • ~_ . ~_ -~ ~'~~~ ~~ i •'' _ ^~ ~ 'r"i .-~. ~ ~ ar 3~L ~~ ~' . ,' ~~ ~ .1 "~+`> rin ~.~ -- ~ ~ ''rw rte'' ~- ~ ~ ~ -~.•,^' ~ ~- Fine-grained sandstone with abundant glaucony (g) and phosphate (ph) grains, the later of which is at least partially concretionary. Note the stylolite (sty) which is demarcated by opaque stylocumulate (black). This is evidence of porosity-reducing compaction of the sandstone. Scale is 200µm. ... Kuparuk 7390.Oft ~ ~ ~ ~ ~ I~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i ~ v . ~ ;~ { ,'- ~~'~ *y J t~.. v r~ ~. / . ~ h. y ' car- r ~ ` ' ~ f ..~,~ r ~j ... ~`'~ ~ ~ .~~ , 'F'~ '~~~ mss. - ~~ r ~ ' ~ ~ ?~- ' , r' ,..yam a. ~. . ` + ' ,~ ~ . .. 1 .sfi '' A A ' ~~' a~ '~'' + . - ~ ur ,) '.; 3 ., The pore system in this quartz-rich sandstone consists of a combination of isolated grain molds and small intergranular pores, most of which have some degree of clay or residuum present. Many of the quartz grains are fused together due to compaction, further isolating pores. Note the pore lining bitumen (bit), the ferroan dolomite cement (stained dark blue) and the pore-filling kaolinite cement (k). Scale is 100µm. Kuparuk 7390.Oft i- ~~' ~' '~ G '',. ~~~, ~ /~ ` .~, ..~ , ~' ~, ~.' M a v - J j. r _. ,,~. ,, , .,,,, . ~ ~ ~ . ~' t ~ r y _ t' ~ . ~ ~~~ ... . ~.= ~ ~' ~: ~.. ~ 3 ~ ~, ,-. .. . .. '?i .-~ r +:~ i. .. , , ~ .. ~~ i '~. f•' ~ . ,, ~~~ i ~ ~}'A . .' A A~ ~. •. by ~ ti. '~,. - t ~f ~~!! "~ ~ y+ .o S` ~ t r. ~ . .j ,,, ~" a ~. ~~ ~ r ~ ~„~ . . pe - . ,~ ti Detailed view of stylolitic sutures (defined by black stylocumulate) in a compacted sandstone. Many of the larger pores are secondary grain molds. Note the glaucony grains (g) and minor Fe dolomite cement (dol). Scale is 100µm. Kuparuk 7390.Oft Conclusions Torok sandstones are lithic arenites that generally have low porosity (^'5% effective) and low permeability (~0.06mD). The main factors that contribute to porosity reduction are the presence of illitic(?) clays and compacted lithic grains that are deformed to occlude pores and block pore throats. Kuparuk sandstones are sublithic arenites that are generally cleaner than the Torok sandstones, but have undergone a significant degree of compaction. Permeability in the one measured sample is 0.08mD with a porosity of 7.9%. The major porosity-reducing phase is quartz overgrowth cement. F E X FEX L. P. 2006-2007 Drilling Season Amaguq #2 Daily Drilling Reports RECEIVED MAY 2. ~ 2007 Ica 0~ & Gas Cons. Comm ~~-~~~~ ~rsd5~ b Spud Date ,Rig Release Date Ground Elevation (k) Orlg KB Elev (k) KB-Ground Distance (k) IAFE No. Total AFE Amount Total AFE+Sup ?:{ 74.00 93.00 19.00 ~~~~I AF62035 23,556,979.00 zsssss7s.oo '" $dfe ~,,:,~°!w ~s „~~ ~ ,, ti `k ,,, ~ ~";'~ ?, -~~ (Target Depth (kKB) Target Formatlon Type Date Comment , ' 'Dally Cost Total q. ;~ .. , -' ~~ '-' a ' }" ' Cum Cost To Date : .: Dail Summa ;~~f~, ~ ~'~ . r r~ ~- Weather Lease /Road Conditions Wellbore Condition ~ Over (+) /Under (•)AFE (+/-) Var Days ,Daily Mud Cost Mud Cum To Date -13 wind NW Build Ice Road __ Operations @ 06:00 ,Depth Start (kKB) Depth End (kKB) Finished Ice Pad for Drill Rig - Depth Progress (k) Operations This Report Period Drilling Hours (hrs) Complete Ice Pad for Drill Rig ' ~ ~ ~ ~ ~ ~ ~ ~~ 't ~ - "'~~' ^ ~ ' Operations Next RePOrt Period ~~ :*~'s'r'~`"p~ ~~ ~ y ta e ~ ~~ y: man.Con c ~ ~ Cont To Move In Camp Units DaJ1y.For Job Contact Cell Phone ~ ~ £ „ ~ „~ ~ ~ ~ -~ ~ ~ i ~~ ; # y~ ~~ ~ ~ Start Dur Ops Scheduled Depth End Ri S:' DO On AW, .'" t ~ y ' Ti h C t T O g T bl (kKB) C me ( rs) a ommen ype Phase MaJor Op pera on rou e Rig Supervisor -: Mud Checks: °'t Mud Pum s: 1,Gardner-Denver PZ-9; " : Density (Ib/gal) pH CEC for Cuttings Pf (mLImL) Calcium (mg/L) °ti Water (%) Mud Lost (Hole) (bbl) No. Pwr (hp) Rod Diameter (in) 1 1,000.4 2.9921 " Vis (s/qt) Filtrate (mU30min) Filter Cake (132") Pm (mUmL) '. Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) ..Liner Size (In) Stroke (In) VoUStk OR (bbl/s... 9.02 PV Over (cp) Gel (10s- (Ibf/100f... Sand (%) MBT (Ib/bbl) ,Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) 'Pum Checks YP Over (Ibf/10... Gel (tOm) (Ibf/100... Solids (%) LGS (%) 'Polymer (ppm) LCM Mud Vol (Res) (bbl) SVOkes Pres (Psi) SlowSpd (spm) Eff %) Type Get (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalln (mUmL) Whole Mud Add (bbl) NO ' s: 2 .Gardner-Denver PZ-9 Mud Pum '~:~- Silicate (%) Electric Stab (V) Comment ~, No. Pwr (hp) Rod Diameter (in) 2 1,000.4 2.9921 - -. r~"'z ~€ .~ a„i, 3s -.~:- •- ° - "r-~+ - _ ~ ' ~ "Liner Size (in) SVoke (in) VoUStk OR (bblls... -,~ ' Sh k r-Data D i ~ ° _ n a e , . ,~ .. . ~. ~ :: -_ _. - ~ __ ,. 9.02 M d o el Description Make Pump Checks _ aker Screens strokes _ _ __ Pres i SlowSpd (sPrn) Eff % -beck No. Screen No. Ser Sz X (in) Scr Sz Y pn) ps No Shaker Checks Shakers::<Descrl"Ion?> , Dens OF Ib/ al Hrs hrs Make Model f DrillStrin s: ~;°; „~,,~.:~*?Shaker Screens ~ -~' Screen BitRun Make Bitlnventory BltType ItemCost Deck No. No. ' Scr Sz X (In) Scr Sz Y (In) : ':'. IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (fUhr) Noalas (/32") IADC Codes 'Shaker Checks ;?r, ,~ ~ a } ,, !Dena OF (IWgal) :Dena OF (Ib/gal) '~ Hrs hrs .,,.; _, '-„tie, ., _. i; ,, ~ .. ., ,~ BHA No. Cum Depth (k) SPP (psq Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) " Model WOB (10001bf) Interval ROP (fUhr) Total ROP (fVhr) Drilling Time (hrs) Drilling Torque PU HL (70001bf) Max. Over-Pull (Ibf) Make Bit RPM (rpm) Motor RPM (rpm) '-0um Drill Time (hrs) Off Bolcom Torque Torque Unite SO HL (10001bf) CentrlfUge/C clone Checks !Density Overflow (Ib/gal) Overflow Rate (gpm) i H draulic Calculations AV DP (ft/min) AV DC (ftlmin Erc Dens OF (Ib/gal) Undertlow Rate (gpm) Hours (hrs) Oil Under FI (%) Dens FD (Iblgaq Drill Strin COm OnentS _- Mtr Top elm 'Bend °Mu , , di iv~Ollr>tS.. ~ ~~~?"~~` Item Density Drik Conn Sz Conn Sz Btm Angle , Descri ion. Cons... Dally Cost Vendor Jts Description Len k OD In ((balk) Grade. ID (in (in) (ln) To Thrd '~ (In) Thrd Cum Len R."~'.- (°) x n k Ch L a C n ` ~ '"` .~ ;; ~ .: ec ,;:., .., ~ . k ~ ~ ~A ~h : ~ : as si. ~ " . Welibores .~~',~?.~ ,x~ x , ~:. my ~~~~ Date Type y : ` Klck Ok Depth (kKB) - Wellbore Name VS Dir (°) Original Hole ' =Last B0 Chec ,r•' Test Data Teat T ~ e 'Formations Sample Top Formatlon Name MD.(kK6) __ - -_ FEX ~~", - - OQR ~~~1~ Page. 112 ` Well Rtame: AMAGUQ #2 Job Type: pr~ilir~g ~ C}ria~ina! ~~~ ; 1f2Uf20Q7, Report: 2:0, pFSs ~b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance ?~:} ~~E No. Total AFE Amount Total AFE+Sup 979 35 23 556 00 7 AF 2 74.00 93.00 19.00 , . 23 5ss,s s.oo , 6 0 ,:~ ~~ ~ •. ~ - ,,. ; _ m. ~... , Target Depth (ftK6) (Target Formation Daily Cost Total 'Cum Cost To Date ~ ~.~ ,~ ~~ ~~~~- ' ~~' ~~, ~ ~ 1 1,000.4 2.9921 ~' Pf (mUmL) Calcium (mg/L) ' % Water (%) '. Mud Lost (Hole) (bbl) Liner Siu (in) SVoke (in) ?Vol/Stk OR (bl 9.02 Pm (mUmL) Potassium (mglL) '.Percent Oil (%) ',Mud Lost (Surf) (bbl) P_ m~ Checks . -""I"mo .. „^,"T'""~:f"~%. No Mud Vol (Res) (bbl) -~-F--~ k,,, ~ -^~~~ (mUmL) jWhole Mud Add (bbq 'No• Pvrt (hp) Rod Diameter 2 1,000.4 2.9921 ~ Liner sirs (in) ~ stroke (in) --vol/stk OR (DI 9.02 Shaker Screens Deck Nc. Shaker Checks Shaker Rate f Top 1 r ~Jptls t I Drift Conn Sz ~ C ` ~~. ~ #a s , ~~i ~.x~ (in) I (in) (in) TopTtnd Screens Hole FEX Lp. ~ !~C?R Deg - ~~yQ Ziz Jvb °Type: C3ri#~~ ~°~€~~$~~~ ~<~.~, ~ ~~~7, Report: 20, DFS: ->~.+ation (ft) Orig KB Elev (k) KB-G!our~;t D ~+~ r a ,~t 74.00 93.00 19.00 CsgRun Date OD (in)Grade ~Wt (Ibs/k) ~~ „ __ __ __ Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) !AFE No. Total AFE Amount Tolal AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 23 556,979.00 , y~ ' ~ N+ ~' !~~' ~V~ ~~ ° y~ d~:„ ~y T` .. ~ ~~~~ i ~ Safe , < wy ~. ~ ~ a Target Depth (kK8) Target Formation Type Date ' 'Comment '. Daily Cost Total Cum Cost To Date Dail Summa ' ~s~~n/, ~; ~-~.t. ~~~ :gym ,~ ~, ~ ~.:. _ > ~°.~ ,. - ~~.. ~ . . Weather Lease I Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/-) Var Days '.Daily Mud Cost Mud Cum To Date I- -11 windy NE @ 12mph Building Ice Road _. _ _ Operations @ 06:00 Depth Start (ftKB) Depth End (ftKB) Total of 14 Camp units /Placing Support System D illi h k H ' h P " Operations This Report Period r ours ( rs) rogress ( ) ng ,Dept Layed Down Herculite for Support System Behind Camp Units ,Burmed Herculite with Snow & Ice /Cont. to Recieve Camp Units /& Rig Units From 2P. Plan to Start Cellar to-morrow 22nd ~~~~ f. u'~.~~;'~r -~ - ° Foreman":Contact T ~.=": ~~~ _. ~~e:~-~-._ Dail Operations Next Report Period . .. . Job Contact Cell Phone Cont. to recieve Camp Units & Set together to Plug in a ~ ~.- _ _ Time Lo .w~ _. ... - ...e- ._: _ ::* ~ ~~. ~~ ~= ' jJ SRI s>Do on AW Start Dur Ops Scheduled Depth End ~RIg Supervisor i Time (hrs) Cat Type Phase Ma or Op ppereUon Trouble (ftKB) Comment Mud Ptim' s:1~Gerdrier-Denver PZ-9 r. ,. MUd Checks: - iNo. Pwr (hp) Rod Diameter (In) ~ i ' (bbl) Density (IWgal) pH CEC for Cuttings P((mLImL) Calcium (mg/L) % Water (%) Mud Lost (Hole) ', 1 1,000.4 2.9921 '.. Liner Slze (In) Suoke (in) Vol/Stk OR (bblbbl/s r Vis (slgt) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) ,Potassium (mglL) Percent Oil (%) Mud lost (Surf) (bbl) i. ~~ 9.02 1' PV Over (cp) Gel (1Os) (Ibf/t00E.. Sand (%) MBT (Ib/bbl) Llme (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) Pump Checks _ _ _ Strokes Pres (psi) Slow 5pd taPml ER (%) YP Over (IbfNO... Gel (tOm) (Ibf1100... Solids (%) LGS (%) ,Polymer (ppm) LCM Mud Vol (Res) (bbl) NO < -. Type Gel (30m) (Ibf/100... T (R) (°F) Chlorides (mglL) '~.HTHP Fllt (mU30... Alkalin (mLImL) Whole Mud Add (bbl) MIId PUm S; 2 ~.GardneFD@r1Ver PZ-9 ' <. No. Pwr (hp) Rod Diameter (In) 2 1,000.4 2.9921 Silicate (%) Electric Stab (V) Comment .Liner Size (in) Stroke (in) Vol/Stk OR (bblls... _ _ . ~ ' ~~ ""~ 9 02 ' ,; .a .. ,, .. . _ ,.. ,. ,~ ~ •,..h. in Shakei Data ~ ~~ scription Make Model Pump Checks _ k S `' _ _. __ _ _. _ tro es Pres (psi) Slow Spd (sPm) ER % Shaker SCre@nS NO °. Deck No. Screen No. - Scr Sz X pn) - Scr Sz Y. (In) . Shakersr<Descrl'tlon?>, a Shaker Checks Make Model __ __. Dens OF (IWgap _ _ _ .... Hre (hrs).._. , 'Shaker Screens r Screen Dfill Strln S: : ~ ' ~~ ' ~ ~' ~ '~ " '' ` "Deck No. No. Scr Sz X (in) Scr Sz Y (In) • . Bit Run Make Bit Inventory Bit Type Item Cost IADC Bit Dull TFA (foci Noz) (In') BHA ROP (ft/hr) Nozzles (/32") IADC Codes Shaker Checks Dena OF (Ib/gaq Dens OF IW al) Hrs (hrs) ~ F < ~~ TFO Reference Rot HL (10001... Max. Hook Load (Ibf) Cum Depth (k) SPP (psi) Flow Rate (gpm) BHA No. . Make Model WOB (10001bf) Interval ROP (Pohr) Total ROP (fVhr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) CentrifugelCyclone Checks Bit RPM (rpm) Motor RPM (rpm) Cum Drill Tlme (hrs) OR Bottom Torque Torque Units SO HL (t00011~ _Density Overflow (Ib/gal) Overlow Rate (gpm) ~ Dens OF (Ib/gaf) Undertlow Rate (gpm) ` H draUI1C CaICUlat10DS . AV DP (ftlmin) AV DC (Nmin) Err _ Houre (hrs) .Oil Under FI (%) bens FD (Iblgap --` Drill Strin Com onents ~°~ T -_- ~ Mu ,Mu ~AdtiitiveAmouh>fs~ ~~ : Top ! Btm !, Bend . ~ `Description Cans... Dell Cost Vendor Item Density Drift Conn Sz Conn Sz etm .Angle ?, ` (°) Jts Description Len (ft) OD (In) (Ibslk) ;Grade ID (In) (in) tin) Top Thrd i tin) Thrd Cum Len (ft) z c ~ ~x < ~ " t3t'Cas rt Check ,~~ `~~ '~ ' `~z 1~... '+'3 ~t ~~ ~a t,~ ;~ ,~, , ,~ _ w.. , ... ,. ':Date Type. -- Wellbore Name VS Dir (°) Kick OR Depth (ftKB) • ~ ;••,, ~ ~ r ~ " . Original Hole s l~0„P,wCheck . , . ~ ~ ~, P T ~ . estT e Testoate !.Formations I Sample Top Formation Name MD (ftKB) i I ~ar_n ai_... b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) '.AFE No. Total AFE Amount Total AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 zsssss~s.oo Safe ~~ ~' Fa~~' ss, ~`- E"" '~` ~~ `' 2 s+ ' Target Depth (ftKB) Target Formation Type Date - Comment Daily Cost Total Cum Cost To Date Dail Summa ~., ,; ; ~.. =~,-~ ~; , Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/~) Var Days ~, Daily Mud Cost Mud Cum To Date Building Ice Road - Operations dal 06:00 Depth Start (ftKB) Depth End (ftKB) Total of 16 Camp Units together " .., Depth Progress (ft) Drilling Hours (hrs) Operations This Report Period Cont. to recieve Camp Units & Rig Comp. From 2P Three Move Rollagons From 2P Auger for Condutor on it to set 16" Conductor/ Load up Units 17 & 18 @ C.S to Set Down the Trail .to Amaguq #2 t "~~, ~,~ ~°,.~ ~ ~ r`~'~,~''~ ^k~`~ ' _Contact +~~ ~:t~ ~ ,.~.~,,. Daii Fo reman . Operations Next Report Period Job contact cell Phone Start to Set Up Doyon Truck Shop /Start to Dig Cellar T r. , si -~ ~ ~~"'~ R Time Lo r ~ ~ ~ ~ _, .: ° ~ ,. r... ,.. . ~ ,:;, ., M... •*. ., ..: -. ~ ~ `s: Dd on AW 1 y Start Dur Ops Scheduled Depth End - -. Rig Supervisor Time (hrs) Cat Type Phase Major Op Operatlon Trouble (ftKB) Comment Mud'Pum s`: 1,Gardner-Denver PZ-9 . MUd Checks: ~~ ~~.4 ~• ` .,~' ~.i s~No. Pwr (hp) Rod Diameter(In) ,i ~ Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) iCalcium (mg/L) % Water (% ) Mud Lost (Hole) (bbl) I 1 1,000.4 2.9921 ' Liner Size (in) ~ Stroke (in) Vol/Stk OR (bblls... I Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) 'Potassium (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) ~~. 9.02 PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) '..Lime (IWbbl) OII Water Ratio Mud Vol (Act) (bbl) PUm Checks Strokes Pres (psi) Slow Spd (spm) Eff (% YP Over (Ibf/70... Gel (tOm) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) No T Mlid Ptirri st 2 .Gar:dner-Denvel• P2-9 ype Gel (30m) (Ibfl100... T (fI) (°F) Chlorides (mg/L) '~.HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbq '. No. Pwr (hp) Rod Diameter (In) Silicate (%) Electric Stab (v) Comment 2 1,000.4 2'9921 Liner Slze (In) '. Stroke (in) Vol/stk OR (bbUs... Iri `.Shaker Data ~~~r:~-- ~~ : ~ ..:~ 9.02 scription Make Model Pump Checks Strokes Shaker Screens _. __ _. __. _... _ _. _. __. _. _... Pres{PSl -SlowSpd (sPrn) Eft % Deck No. Screen No. - Scr SzX (In) Scr SzY. pn) NO Shakers: 2Desc~l `tion?> Shaker Checks '.Make Model Dens OF (IWgai) Hrs (hrs) Shaker Screens ,. ,. Screen DrilfStrin S: Deck No No ScrSzX(In ScrSzY In) ~ . . Item Cost Bit Run Make Bit Inventory Bit Type IADC Bit Duli TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles (l32") IADC Codes Shaker CheCkS Dena OF (IWgai) 'Dens OF (IWgai) Hrs (hrs) t. I BHA No. Cum Depth (ft) SPP (psi) Flaw Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) ~. ` " ~~ Make rMOdel WOB (t0001bf) Interval ROP (ff/hr) Total ROP (fUhr) Drilling Time (hrs) Drilling Torque PU HL (10001bt) Max. Over-Pull (Ibf) 'Centrifu elC clone Checks Bit RPM (rpm) Motor RPM (rpm) ',,Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (t0001bf) !.Density OverFlOw (Ib/gal) Overflow Rate (gpm) H draUIIC CatCUIatIOr1S ',.Dens OF (IWgai) Undernow Rate (gpm) AV DP (ft/min) AV DC (Wmin) Err Hours (hrs) Oil Under FI (%) ,Dens FD (Iblgel) Drill Strin Com onents ~ ~t~ ~ v , I My <hil_, Adtlit v_evAmount§ ~ t V d ti D li C D ri h C en or ons.:: e oa esc p o Top Btm Bend -~- I. Item Density I - Drill Conn Sz Conn Sz etm '. Angle , Jts Description Len (ft) OD (In) (Ibs/ft) .Grade ID (In) (in) (In) Top Thrd' tin) Thrd Cum Len (ft) ! t) y.._ ~-~~~ ~ ^~ b) 5 '~ Check `' ~ ' Las Casir' ~:" .:~ .x ~ s ~~ ~ -~ ~~t Q ~ ~ "x - Date Type Wellbore Name VS Dir (°) Kiek Off Depth (ftKB) ~ ' ~ `` st~BOP~GFteck~ ,' N ( :: '~ ~~~: Original Hole ~ ~ Teat Ty Test Date Formations Sample Top Formation Name MD (ftKB) b Spud Date Rlg Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) .AFE No. Total AFE Amount Total AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 Safe '=' 'b ~' ,r ~ ^~~ ~ ~ °' ~ "' +~ "t ,+"~ ' ~ ~ ~' ~ ~ ~'°~ ' .. ~ " , Target Depth (RKB) Target Formation Type Date Commem Daily Cost Total Cum Cost To Date Dail Summa L ~, ~ ~ ~, ~~,<=..e. ~d,..~> ~:, .; ~r:r ,~: .~ :~° ~ .:. . " ~ \ . ` , . Weather Lease !Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/-) Var Days Daily Mud Cost Mud Cum To Date CLEAR Building Ice Road Operations @ 06:00 Depth Start (RKB) Depth End (ftK6) 16 CAMP UNITS HOT / 4 READY TO INSTALL / 1 @ C.S. Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) RIG IN CAMP /CONTINUE W/ DOYON SHOP (90%) /START CELLAR (BACK HOE BREAK DOWN) Operations Next Report Period x '~ E .,~ ~ ~ ;` ~~ ~ ~~`ti INSTALL 4 MORE CAMP UNITS /INSTALL ROOF ON DOYON SHOP /FINISH CELLAR /START Dail Foreman Contact ,k t+ .~, -: CONDUCTOR Job Contact CeIlPhone j ~. t -Time Lo r ... ~rY`. '~~" -. , ° ~: , ~. - ~ ! RI 's: Do ' on AW Start Dur Ops 'Scheduled : Depth End Rlg Supervisor ! Time (hrs) Cat ~~ Type Phase Major Op Operation Trouble (RKB) Comment Mud Pum s: .. ; Mud Checks: ~ '.; . ' G ~ %. `; Na Pwr (hp) Rod Diameter (In) i . Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) • 'Liner Size (In) Stroke (in) Vol/Stk OR (bbl/s... Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) 'Potassium (mglL) Percent OiI (%) Mud Lost (Surf) (bbl) PV Over (cp) Gel (tOS) (Ibfl700L.. Sand (%) MBT (Ib/bbl)Lime (IG/bbl) OII Water Ratio Mud Vol (Act) (bbl) . Pum Checks SVOkes Pres (pal) Slow Spd (spm) ER (%) YP Over (Ibf/10... Gel (tOm) (Ibf/700... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) No Type Gel (30m) (IbfN00... T (R) (°F) Chlorides (mg/L) 'HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ShakQrS: <DQSCri lion?> ~ .:- Make Model '~ Silicate (%) Electric Stab (V) Comment j Shaker Screens D in ` ShakerData~~'s.:~~~` "~ ;~ -~- " "' "- "'~' ~ ~ x. ~ screen ^ Deck No. No. Ser Sz X in Scr Sz Y In scription Make Model Shaker Checks Shaker Screens Dens OF (Ib/gal) Dena OF (Iblgal ' Hrs hrs Deck No. Screen No. Scr Sz X (in) Ser St Y (In) Shaker CheCi(S Make Model Dens OF Ib/gal Hrs (hrs) Centrifu elC clone Checks Drill Strin s: ~ ~~ ~ .Density Overflow (Ib/gal) Overflow Rate (gpm) Bit Type Item Cost Bit Run Make Bit Inventory IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles (/32") iIADC Codes Dens OF (Ib/gal) Underflow Rate (gpm) Hours (hrs) OII Under FI (%) Dens FD (Ib/gal) BHA No. Cum Depth (R) 'SPP (psi) Flow Rate (gpm) TFO Reference IRot HL (70001... Max. Hook Load (Ibf) ~ _ .,:~ - ,K '.'s* ~E~~~ MiclAdditive=Am'ounts~ k u Description Cons... Dally Cost Vendor WOB (10001bf) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Tlme (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) w ~ .y ~ ~ Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) OR Bottom Torque Torque Units SO HL (10001bf) ~ , r~ ~'~" ^~'~ ~s ° `L`at#t Casili Check ~ _~ ' ~~ , . Date Type H draulic Calculations AV DP (ft/min) AV DC (Pomin) En ~ a~"" ~' ' BOP Checka~ ~ ;Lasf ~;fl'i i~~~1 u , , , , . ~ Test Date Teat Type Drill Strin Com onents Mtr Top ~ Btm !Bend Formations Item Density ~ Drift Conn Sz ~ Conn Sz Btm Angle Jts Description Len (R) OD (In) (IbsHt) ~ Grade tD (In) (In) (ln) Top Thrd ~ (In) Thrd Cum Len (R) ', (°) ' Sample Top Formation Name MD (RKB) .. ~ ~ ::., s a ~ r ~~~'~ ¢ ~ . _ , Wellbo e , .;: , ~. '_ r;,..r_, . _ . '~ ._._ ; . . . _ .. _ a, , ' ;. • _ ~ :~, . - i s Csg Run Date OD (In) Grade Wt (Ibslft) Wellbore Name VS Dir (°) Kick OR Depth (RKB) Original Hole ~-;. ~.~ ~~~, "rgG^f.~~~rj;~; Cmnt Des Commeirt b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Tolal AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 Safe . ~~~ ~ _ ~` ~ 4.~:" ,gin ` '~'_~;,°,,,~., ~, . :;_;~_ `s~,,~*~f ~ :t >,;x,~:;Target Depth (ftKB) Target Formation Type Date Comment ~. Daily Cost Total Cum Cost To Date '": ~~r~ " ; ,.~;~~, z€ . ~~ ~.; Dail Summa ~ ~~ '~ffi~ ;' '~ ~ ~ ~ ~ ~ . ~ ~ Dail Mud Cost Weather Lease! Road Conditions Wellbore Condition Over (a) /Under (-) AFE (+/-) Var Days Y Mud Cum To Date CLEAR Building Ice Road Operations @ 00:00 Depth Start (kKB) Depth End (kKB) 20 CAMP UNITS HOT (1 LEFT) /WORK ON CELLAR Operations Thls Report Period Depth Progress (k) Drllling Hours (hrs) RIG IN CAMP (20 UNITS HOT W/ LAST UNIT ENROUTE) /WORK ON CELLAR /INSTALL ROOF ON DOYON SHOP ~~~ ~~',. `~ ~`*'~ fi~ ;r~-' ,:~~~ „"~~~'^~~~ <,,;~ ~ ~ Daily Foreman Contact ,~ v . ~ ,? , . . "" .,,.. operancna Naxt Report Period . Job Contact Cell Phone INSTALL LAST CAMP UNIT & RIG IN CAMP /RIG UP INCINERATOR /WORK ON CELLAR Time Lo' ~~~~ r~~.4t~x ~, ~~, ~? ~~~ ~~~~~ ~s~Ka€5 ,tea '~~ ~'`.~~.. `~R( ~,,~. ~ `s: Do on AW Start Dur Ops Scheduled '~ Depth End '.Rig Supervisor Time (hrs) Cat Type phase Major Op Operation Trouble (ftKB) Comment Mud Ptjm st 1,Gardner-Denver, PZ-9' Mud Checks: ~ + " " , No. Pwr (hp) Rod Diameter (In) ~ Density (Ib/gaQ pH CEC for Cuttings Pf (mL/mL) '..Calcium (mg/L) % Water (%) Mud Lost (Hole)(bbl) '',. 1 1,000.4 2.9921 '~ Liner Size (in) ', Stroke (In) Vol/Stk OR (bbl/s... Vis (s/qt) Filtrate (mL/30min) Filter Cake (132") Pm (mL/mL) ',Potassium (mglL) P ercent Oil (%) Mud Lost (Surf) (bbl) '; ~~,. 9.02 PV Over (cp) Gel (10s) (Ibfl100f... Sand (%) MBT (Ibrobl) '.Lime (Ib/bbl) O II Water Ratio Mud Vol (Act) (bbl) ' PUm Che cks Strokes ~ Pres (psi) Slow Spd (spm) Eft (%) YP Over (Ibf/10... Gel (10m) (Ibf1100... Solids (%) LGS (%) Polymer (ppm) L CM Mud Vol (Res) (bbl) No ` Type Gel (30m) (Ibf1100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mIJ30... A lkalin (mlJmL) Whole Mud Add (bbl) MUd PUm S: 2 Gardner- Denver PZ-9 .' 'No. Pwr (hp) Rod Diameter (In) 'i 4 Silicate (/) Electric Stab (V) Comment 2 1,000. 2.9921 j. ~,Uner Slze (in) 'Stroke (in) VoUStk OR (bblls... p ! D in `Shalie~'Data , - ~~Y ~~; 9.02 scription Make Model Pump Checks ~, Strokes i d (s m) Eft % i l __ P Shaker SCfeenS p res (ps ow Sp ~ S Deck No. Screen No. Scr Sz X (In) Scr Sz Y (in) - NO i ___._... Shakers: <Descri tlon?> Shaker CheClCS .Make Model _ i _ ..Dens OF (Ib/gal) _ _ _ _ Hrs (hrs) Shaker Screens DrIII Strin s: screen ' Deck No. No. Ser Sz X (In) Scr Sz Y (In) Bit Run Make Bit Inventory Bit Type Item Cost ~. IADC Bit Dull TFA (Intl Noz) (lno) BHA ROP (ft/hr) Nossles (/32") laoc codes Shaker Checks Dens OF (Ib/gal) !, Dens OF (Ib/gaq ', Hrs (hrs) ~_ ~ ' BHA No. Cum Depth (k) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (70001... Max. Hook Load (Ibf) '"' - Make Model WOB (1000ibf) Interval ROP (ft/hr) Total ROP (ft/hr) Drllling Tlme (hrs) Drllling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) ~ ''Centrifu elC clone Checks ' Blt RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (t0001bf) ,Density Overflow (IWgal) Overflow Rale (gpm) H draUIIC C°a1CU18tIOt1S ',Dens OF (Ib/gal) UnderFlow Rate (gpm) AV DP (ftlmin) AV DC (fUmin Err ', Hours (hrs) Oil Under FI (%) !Dens FD (Ib/gal) Drill Strin Com onents ~ ~ ;, ' My Md#1 dlt_Y.e Atnounts~ i ~; w .w . Top Btm Bend { Descrption Cons... Dail Cost Vendor Item ~ Density ' Drift. Conn Sz Conn Sz gtm Angle '. Jts Description Len (k) OD (In) (Ibs/ft) Grade ID (In) (in) (In) Top Thrd ; (In) rt~ Thrd Cum Len (ft) i (°) ? ~ x a ~. ~~ * ~: tLast Casriri° Check ' ~ rY •xx':, - :~ F ~a,„,a »~ ~~~s ~ ,~`~„~ ~~ ~~~'~ '~ . ~~ .""~ Date Type , ~ ~ ~ ~ ~~ ~ ( vs otr °) KICkO1f Depth (kK8) ;,...; .a. ~,,,~ ,,,~ ~,-~„ Wellbore Name , g Last BOP"~heck:;,. ~' - ,~~; r~ . , , :..~~u On final Hole T t T e T t D t - es p - es a e Formations Sample Top Formation Name MD (kKB) levation (R) Orig KB Elev (R) KB-Grountl Distance (R) ~. - ~ _:,: 74.~~ 93.00 ~ 9.~0 Csg Run Date OD (in) Grade Wt (IbslR) Cmnt Des Comment - ;; 74.00 93.00 19.00 i Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ,AFE No. Total AFE Amount Total AFE+Sup ! 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 s •~ ~a~," EnM~ ~ ` ~".y. r ~ fit-+k ~~~~•° ter- Safe ~~'~ ~ - ~ . ~. , , t •' s.., . tea ~ ,}~~ ^-, `~;~ ~ ~;, r Target Depth (kK8) ~ _ .~, .. ': ~ ^_3 Targe! Formation Type Date Commem 'Daily Cost Total Cum Cost To Date Dail Summa -;` ., a ~.~ I . :rr~ - _§, .~ i_.v.s~. ~ ~ . Conditions Wellbore Condition Over (+) I Under (-) APE (+/-) Var Days Daily Mud Cost Weather Lease I Road Mud Cum To Date SNOW Building Ice Road - Operations @ 06:00 Depth Start (kKB) Depth End (ftKB) SET UP TO DRILL RATHOLE 8 MOUSEHOLE Operations This Report Period Depth Progress (k) Drilling Hours (hrs) PREP CAMP /RIG IN SEWAGE PLANT /RIG IN INCINERATOR /DRILL 24" CONDUCTOR HOLE & SET 16" CONDUCTOR @ 81' GL / 100' KB ~ `~ `'~ ~ - :~ ` ~ "' ~,w, ' ` ,Dail Foreman Contact ,' Operations Next Repoli Period Job Contact Cell Phone DRILL RAT HOLE 8 MOUSE HOLE /SET SUB MATTING /START INCINERATOR /RIG IN CAMP & SEWAGE PLANT : D AW , „ .. on Time LOg ~ ~. <: ~ .~. t '.` , .. ': ~ ., `'~3._., ; . .. ' ~- . _, ~h.« }. . ~ ,J,'.:.:' .. _..~`'~*~. , ~ . ~., Isor Start Dur Ops Scheduled Depth End BOb LUptOn, Rig Manager ~ Time (hrs) Cat Type Phase Major Op Operation Trouble (~B) comment `MudPurri's:1,Gerdner-DenverPZ-9 00:00 24.00 Drig Planned Cons Rig Other No Trbl 100.0 12 HR /DRILL No. Pwr (np) Rvd Diameter (In) Op Move/... RATHOLE & 1 1,000.4 2.9921 MOUSEHOLE / .Liner Size pn) stroke (In) Vol/Stk OR (bbl/s... SET 16" g,02 ~ CONDUCTOR @ - 100' KB 1 PREP Pum Checks PAD F/ RIG strokes Prea (psi) Slow Spd (spin) Eft (%) No Mud Checks: ' s: 2 Gardner-Denver PZ-9 Mud Pum Density (Iblgal) ,pH CEC for Cuttings 'Pf (mUmL) Calcium (mg/L) i % Water (%) Mud Lost (Hole) (bbl) No. Pwr (hp) Rod Diameter (in) Vis (s/qt) FIIVate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) 2 1 ,000.4 2.9921 Liner Size (In) .Stroke (in) Vol/Stk OR (bbl/s... PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) 9'02 Pump Checks _ Over (Ibf/10... Gel (10m) (ibfN00... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) Strokes Pres psi Slow Spd (spm) Ek % Type Gel (30m) (Ibf/100... T (k) (°F) Chlorides (mg/L) HTHP Filt (mL/30... Alkalin (mUmL) Whole Mud Add (bbl) NO Shakers:.<Descrl lon~> . Silicate (%) Eleetric Stab (V) Comment Make Model D in' Shaker Data. .-::. .~ .. "~" x .,..< :;', ~ ._.tl.. ..~.k _ ,, . ~ ~~: ,C,..`~ „ ~,+~ .,. ~:,~ .;. Shaker Screens Descrlpton Make Model Sereen Deck No. No. Scr Sz X In) scr sz Y (In) Shaker Screens Deck No. Sereen No. ScrSzX In) ScrszY(In) Shaker Checks Dens OF pb/gaq Dans OF (Ib/gaq Hrs (hre) Shaker Checks Dens OF (Iblgal) Hn (hrs ~ - - Make Model Drill Strin s: ~ Bit Run Make Bit Inventory Blt Type Item cost ' Centrjfu e/C clone Checks Density Overflow (Iblgal) Overflow Rate (gpm) IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (Whr) Nozzles (/32") IADC Codes Dens OF (Iblgal) Underflow Rate (gpm) ~ ~ Flow Rate (gpm) TFO Reference Rot HL (70001... Max. Hook Load (Ibf) Hours (hrs) Oil Under FI (%) 'Dens FD (Iblgal) Cum Depth (k) SPP(psi) BHA No. WOB (10001bf) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (100016f) Max. Over-PuD (Ibf) !~.Mta(i Addi i~. ,8..". ~ OUO~ ,-,. ~ ,w,~,. ~1:', Descrl Hon Cons... Dail Cost Vendor Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hre) Oft Bottom Torquo Torqua Units SO HL (10001bf) '- ~i~"' ~ ! '` ~ " °: i z, ii ~ _ ,~ } u #~ ~ Las .Casin "Check,:;~~~;'t,v~,'~I~q?;,et y~ .:` H draulic Calculations D T AV DP (ft/min) ype ace AV DC (ft/min) Err i ~ Drill Strin Com ~ ~•.~+'~': onents st, OP'°Ch k~. `"o ,~°~ T t T T D es y e ata _ est MV ' I D i ' Top ift Conn Sz D Btm ;Conn Sz Btm Bend Angle tem ens ty r I l FOrmatlOllS ' (°) Description Len (ft) OD (In) (Ibs/ft) Grade ... ID (In) n) tin) ( ..... o) Top Thrd.; ( Thrd Cum Lan (ft) , Sample Top Formation Name MD (kKB) - ~~ r ~ ~ ~ ~ ~ ~ ~~ a "~-; ~, ~- , f ^" ~ ~ ~ "~ ~ . a Base Permafrost 19.0 Wellbores K A ~: ~,~ ,~ ,~ ~ ~ ~ gas ,~.p, Wellbore Name VS Dir (°) Kick Ok Depth (kKB) ', ~ Original Hole ~ --J '. Report Printed`. 2/5/2007 b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance ~(ft) AFE No. ~ Total AFE Amount Total AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 .:- $afe .3?. ~' ~~' ,,...'_, a, . ~"u~ ~"~ %4f a'at . -""""da 3`~z, .a- ..: 1~ _., ~'~::_, _ ~ti °~..,, ;Ef?`Target Depth (ffK8) Target Formation Type Date Comment ' Safety Highlight 1!27/2007 SETTING CONDUCTOR 'DauyCostTotal cum Cost To Date ,. Dail Sumrtia " `; ~° Y~~z~,~~~~-,.'~~ ~'`~~~: ~~¢raa _.. ' r ' ~~ fi"m~ :~ - ~ ' Daily Mud Cost Weather Lease I Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/.) Var Days Mud Cum To Date CLEAR Building Ice Road Operations @ 06:00 Depth Start (ftKB) Depth End (ffKB) ' SET MATTING /PREP CAMP & SP Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) ''~~ i DRILL RAT HOLE & MOUSE HOLE /PREP PAD F/ MATTING 8~ RE SURVEY /RIG IN SEWAGE PLANT / ' PREP CAMP /RIG IN COMMS ~ '' ` Forerriali Contact Operations Next Report Period Dally ` SET MATTING & SUB /PREP CAMP /RIG IN SEWAGE PLANT 8~ COMMS Job Contact Celi Phone Time Lo ..... . ,^ ~ ~,~~~~~"..".~,~~,~r~~~':~ ~' ~"d~ ~ ~,~ ~~3~t°~ ,, ~^M~ ;*4 ~ ~ Start Dur Ops Scheduled - Depth End Rig Supervisor Time (hrs) Cat Type Phase Ma)orOp Operation ', Trouble (ftKB) Comment BOb LUpton Rlg Manager 00:00 24.00 Drlg Planned Rig Move/Up Rig Rig Up No Trbl 100.0 , 12 HR /RIG UP 'Mud Pum 't;: 1 Gardner-Denver PZ Op i MDVe/... , , No. Pwr (hp) Rod Diameter (In) Mud Checks: 1 1,000.4 i 2.9 921 I Density (Ib/gal) pH CEC for Cuttings Pi (mUmL) Calcium (mg/L) % Water (%) ', Mud Lost (Hole) (bbl) Liner Size (in) Stroke (in) _ Vol/Stk OR (bblls... 9.02 I ;= Vis (s/qt) Filtrate (mU30min) Filter Cake (132") Pm (mUmL) Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) ' 'Pum Checks PV Over (cp) Gel (tOs) (IbfN00f... Sand (%) MBT (Ib/bbl) ..Lime (Iblbbl) Oll Water Ratio Mud Vol (Act) (bbl) Prea psq SlowSpd Strokes (spm) Eff(%) NO YP Over (IbfNO... Gel (10m) (IbFl100... Solids (%) LGS (%) ..Polymer (ppm) ' LCM Mud Vol (Res) (bbl) '., Mtid Pum s': 7Gardner-Denver PZ-9 ° No. Pwr (hp) Rod Diameter (in) Type Gel (30m) (IbfN00... T (fl) ( F) Chlorides (mg/L) HTHP FOt (mL/30... Alkalin (mUmL) Whole Mud Add (bbl) 2 1,000.4 2.9921 Silicate (%) Electric Stab (V) Comment Liner Size (In) '_Stroke (in) Vol/Stk OR (bbl/s... 9.02 .'... in "Shake _. -. r Data ..; .. _ ~ ~. ,~k ~ - ~ Pum Checks ".~°;u~k <,~.(~.. , x, ,~'~, , ~. ~ .,., 4,,,. - '~ :. ~~:.~ ._ ~~'b•. P :_.,v scripson Make Model SVokes Prea 1 Slow Spd (sPm) Eff Shaker Screens No Deck No. SereenNo. ScrSzX(in) ScrSzY In Shakers:<D6SCrl tiOn~> ',Make Model Shaker Checks Dens uF pblgat) Hrs hrs Shaker Screens Screen ,,. , , Deck No. Nd. Scr S DriII Strings: _' '; ~ z x pn- scr Sz Y (in) ' Bit Run Intake ~BIt Inventory Bit Type ~ ~ ~ ~ ~ ~ -Item Cost Shaker Checks IADC Bit Dull TFA (loci Noz) (in') BHA ROP (fVhr) Nozzles (/32") IADC Codes Dena OF (Iblgal) :Dens OF (Iblgal) Hrs hrs) r ~~ s: ~ Rot HL (10001... Max. Hook Load (Ibi) - Make Model BHA No. Cum Depth (ft) SPP(psi) ~ Flow Rate (gpm) TFO Reference ' WOB (10001bf) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Tlme (hrs) Drilling Torque PU HL (f0001bf) Max. Over-Pull (Ibf) '~ C.entrlfU eg /Cyclone Checks 'Density OverFlow (Ib/gal) Overflow Rata (gpm) - Bit RPM (rpm) Motor RPM (rpm) ',,Cum Drill Tima (hrs) OR Bottom Torque Torque Units SO HL (10001bf) ' ,Dens OF (Iblgal) Underflow Rate (gpm) H draulic Calculations ' Hours (hrs) Oil Under FI (%) Dens FD (Iblgal) AV DP (tt/min) AV DC (fUmin) Err a-^~. _'~`^~ ~ ~sr-t=? ga. ° DriII Strin Com onents Mud ~df ive Amoiintsl'~^~~,~;,^~; ,' ~, Mtr Descrl lion Cons... Dally Cost Vendor Top Btm Bend Item Density Drift ConnSz Conn 3z Btm Angle ~~~. ~~~~~,~' ~ / 'ry ~.~ ,~ ;~ .„ ' Jls Description Len ft) OD Qn (Ibslft) :Grade ID in (in) `' (In) Top Thrd , (In) Thrd Cum Len ft ' O LBtt CaBln CheC ~r~;,. ~ fir' ' Date Type Wellbores ,. ~ ~,~;r-~x~~ x: m~~) ~ n ~ ~'~ *ka: h~ ~A `~. q s ~ ' _ ~ti ed~. ;~~ o ~~, ~ Lest BOP~,CheCk ~? ~ ~ Wellbore Name VS Dir (°) Kick Off Depth (ftl(8) Original Hole Test Date TestT pe Formations Sample Top FOrtnedon Nama MD (ftKB) Base Permafrost 19.0 74.00 ~ 93.00 ~ 19.00 csg Roo Dace oo pn- Grade Wt Qbs/R) 1 /26/2007 16 H-40 65.00 b Spud Date Rlg Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ,AFE No. Total AFE Amount Total AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 n ° ~° ;'~'~' " ~= x ~~^..? ~ ~ '~'v '" ~ ;Safe , z,, ,,~. , $ a; ,.eN ,fir.. h -~,,. °~"r~u` / • cad', ,, ~ r at.,(+' '~, r_ ~`,1~ws°~~ ~ .~ ,r ~ =,~ .~~ , u _ . ~,v =, k. , . .....~ - W_.. :.Tar et De th ftKB Tar at Formation : 9 P ( ) 9 Type. Date Comment Safety Highlight 1/28/2007 SETTING MATTING / RATHOLE & MOUSEHOLE COVERS 'Davy Cost7otal Cum Cost To Date .,.,Dail "Summa ' ,.. ,, ~~~ x .,, .N`~ ~ ~~~,~ ~ , y~,~~ r ~ `; !~~ ~~ ~,„~- ~~ r. _~- ~ ~ ~ I J Weather Lease I Road Conditions Wellbore Condition Over (+) I Under (•) AFE (+/.) Var Days , Daily Mud Cost Mud Cum To Date i CLEAR Building Ice Road ' Operations @ 06:00 Depth Start(ftK6) Depth End (ftK6) SET SUB ON PONY SUBS Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) LAY OUT HERCULITE & SET MATTING /SET PONY SUBS / RIG TO SET SUB /RIG IN CAMP, COMMS & SEWAGE PLANT < :' -- " D il F a C t a t Operations Next Report Period a orem n on c Job Contact _Ceu Phone SET SUB /RIG IN IRON ROUGHNECK 8~ WIND WALLS F/SUB /RIG IN CAMP, COMMS, & SEWAGE _ _ PLANT ' ~ ri~ ~ ~' AW R g ~rv o n ~ ,~ ~ ~ ~~ ° y~~~ n~. ;•~ '~ ~~:~ ~ ; ~;~~ 4~ s 'Time Lo~ ~~ .; ~ ~ , r ~ "" ° R i s~p s Start Dur Ops Scheduled ~~ - Depth End - BOb LUpton, Rig Manager Time (hrs) Cat Type Phase Major Op Operation Trouble (ftK6) Comment' Mud PUm 7 1, Gardher-DenVer,PZ-9 00:00 12.00 Drig Planned Rig Move/Up Rig Rig Up NO Trbl 100.0 SET HERCULITE & No. Pwr (hp) Rod Diameter (In) Op Move/... SUB MATTING! ' 1 1,000.4 2.9921 RIG IN CAMP, _ Liner Size (in) Stroke (In) Vol/Stk OR (bbi/s... COMMS, & 9.02 SEWAGE SYSTEM ' 'Pum Checks .Mud Checks: ~ sVOkes ° - Lost (Hole) (bbi) Pres psi) Slow Spd (spm) Eff (%) Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud No Vis (s/qt) Filtrate (mU30min) Fliter Cake (/32") Pm (mUmL) .Potassium (mg/L) Percent Oil (%) Mutl Lost (Surf) (bbi) Mud Pum-'s: 2 Gardner-Denver PZ-9 No. Pwr (hp) Rod Diameter (in) PV Over (cp) Gel (106) (Ibf/100f... Sand (%) M8T (Ib/bbl) Lime (Ib/bbi) Oil Water Ratio Mud Vol (Act) (bbl) 2 1,000.4 2.9921 -Liner Size (In) Stroke (in) Vol/Stk OR (bblls... YP Over (IbfNO... Gel (1Dm) (IbfH00... Solids (%) LGS (%) ;Polymer (ppm) LCM Mud Vol (Res) (bbl) 9.02 e Gel (30m) (IbfH00... T (fl) (°F) Chlorides (mg/L) 'HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) PUmP CheCkS ............. SVOkes Pres sl Slow Spd (sPrn) Etf % Silicate (%) Electric Stab (V) Comment :. No - ' ' 'Shakers: <Descrl tlon?> '" ~` '~ ~ ` 4 f ° ,-°,'c ~ ~. ,~+ a.: -;ex, -~_~ _ .~"'.v ~° ~ ""~~: D in 'ShakecData ~~ ?Make Model (Description Make Model Shaker Screens Shaker Screens screen Deck No. Screen No. Ser Sz X (In) Scr Sz Y In I Deck No. No. Ser Sz X (In) , Scr Sz Y (In) Shaker Checks 'Shaker Checks Dens OF (IWgai Hn hrs DenrOF (Ib/gal) ', Dens OF (Ib/gal) . Hrs (hrs) Drill Strjn s: ~~ •~ ,-a ,~.,;~ ~ ~,,; Bit Run Make Bitlnventory Bit Type ItemCost .Make Model (ADC Bit Dull TFA (loci Noz) (in') BHA ROP (ft/hr) Nozzles (/32"- (ADC codes Centrifu e/C clone Checks Density Overflow (IWgaq Overflow Rate (gpm) :. BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot NL (10001... Max. Hook Load (Ibf) Dens OF (Ib/gal) Underflow Rate (gpm) WOB (10001bf) Interval ROP (ft/hr) Total ROP (fUhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over•Pull (Ibf) .Hours (hrs) Oil Under FI (%) Dens FD (Iblgap Bit RPM (rpm) Motor RPM (rpm) ,Cum Drill Time (hrs) Oft Bottom Torque Torque Units SO HL (10001bf) `~ "~ ~`~:"mss x-fa"na~,~ c~-~ ^~,';'" Mid Additive Amount. ~:~~.x ,, ~ s-, ~,_~;; Description Cons... Daily Cost Vendor H draulic Calculations AV DP (fUmin) AV DC (fflmin) Err ~ ~ ~ ~~ ~*? „, ,,~ ~, ~ r a +t ' ,y~ f ~ ~ i :Last Casio "~"Check, -,~ M,, ,~ ; ` r ~ '~ . , .>at .: Drill Strin Com onents pate rype _ Mtr Top Btm Bend Angle It Drift Conn Sz ~I Co n S D lt e Last BOP CheCk~~~:',~ ',:~`>~, , ~ -5 F em n z ena y - . tm - ° Test Date Test Type Jts Description Len ft OD In (Its/ft) I Grade ID in (In) (in) To Thrd' (In) Thrd Cum Len (R) - ( ) _~ ~ ~ ~_, . ~,~$,,~ ~ 3 ~ - >~ , ~; ,~ F ~_~ ~ ~ ~;~ ~ " 'r ~~'~ Ilbores u ~ ~' TM~= ~ 'Formations 7 Sample Top ' r _ ~u._ , s elibore Name _ x VS Dir (°) Kick Off Depth (ftK6) . I ~ Formation Name MD (ftKB). Original Hole Base Permafrost 19.0 i ~r-- Spud Date Rig Release Date Ground Elevation (ft) Orfg KB Elev (ft) KB-Ground Distance (ft) ',AFE No. Total AFE Amount Total AFE+Sup - 74.00 93.00 19.00 AF62035 23,556,979.00 23ssss7s.oo ~ ~.,<; / '~ r~ ,C~~ ~ x~ r S ~ { •~ yet-. "G. ~ ~^° a ^~~ ~~' aTarget Depth (ftK8) Safe ~.~. ~~~.r~~ ~,~,~~~ _.:~;~~ ~~ r~,~. ~:. ~r ~.. ~~M ~~ ~-~~~ Target Formation Type Date Comment Safety Highlight 1/29/2007 RATHOLE&MOUSEHOLECOVERS IDailyCostTotal Cum Cost To Date . Dail Summa ',~~ . ~~r :?`~ ~ ~ ,~~ ;~N~" ~ ~ ~":'~~~'-~'~ w~ °!M .: ~ t '~ '~ ~ . . Weather .~ , ~, _ .. .., . Lease /Road Conditions r , . .~ „ ~'"'~~ ~ 'Dafly Mud Cost Welibore Condition Over (+) /Under (-) AFE (+/~) Var Days Mud Cum To Date SNOW Building Ice Road ~ Operations @ 06:00 Depth Start (RKB) Depth End (8K6) ~ CHINK UP HOLES IN SHOP Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) SET SUB ON PONY SUBS /RIG IN IRON ROUGHNECK & SET UP WIND WALLS Fl SUB /RIG IN CAMP, COMMS, & SEWAGE PLANT x+~`~' ''' ~~~ s ~l Deiljl Foreman Contact}~, ;; _ Operations Next Report Period Job Contact Ceu Phone SET DERRICK ON DRAWWORKS /LAY HERCULITE & SET MATTING /RIG IN CAMP, COMMS 8 SEWAGE PLANT RI • D -.._ .. n AW - ab , 'cif x ,~.`.f":~.'"2"~t .*~.~, ..=~~:-z '~-~.~s ~ a~3 = c~ ` ~ ~" ~ ~"~~"a r~ ®3'~u'~.a..,~~'~,+-~Rlg Supervisor .. T(me Lo , ~.~ ~ , ~ ~ ~ , , .. ,_ ~ ..~ _ . . ~ .. .. Depth End 'Bob LUpton, Rig Manager Start Dur OPS Scheduled Time (hrs) cat Type Phase Ma)orOp Operation ''. Trouble (RKB) Comment Mud Pum si 1, Gardner-Denver PZ-9 00:00 24.00 Drlg Planned Rig Move/Up Rig Rig Up No Trbl 100.0 12 HR /RIG UP No. Fwr (np) Rod Diameter (In) i' Op Movel... ' 1 1,000.4 2.9921 MUd CheckS:. ?Liner Size (in) Stroke (in) Vol/Stk OR (bblls... Density (Ib/gal) pH CEC for Cuttings- Pt (mUmL) ~ ~ Calcium (mg/L) ~ % Water (%)~ Mud Lost (Hole)~(bbl) ~ 9.02 PUm Checks ' Vis (s/qt) FIIVate (mU30min) Filter Cake (/32") Pm (mUmL) ',Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) ', SVOkes Pres{psi Slow Spd (SPmI ER (%) PV Over (cp) Gel (70s) (IbfN00L.. Sand (%) MBT (Iblbbl) 'Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) '... NO Mud Pum s: 2'Gardner-Denver PZ-9! YP Over (IbfNO... Gel (tOm) (Ibf1700... Solids (%) LGS (%) :Polymer (ppm) LCM Mud Vol (Res) (bbl) : No. Pwr (hp) Rod Diameter (in) ' 2 1'000'4 2.9921 Type Gel (30m) (IbH100... T (R) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalln (mUmL) Whole Mud Add (bbl) :Liner Size {In).Stroke (in) Vol/Stk OR (bblls 1, 9.02 Silicate (%) Eiectrie Stab (V) Comment (- Pump Checks SVokes in Shaker Data . ... r : ,` ~,.~ := ~ ~ ,.,` ~ „ .,, .,=_ ~~~ ; -;~^ t~ ~ p res (PSI) Slow Spd (spm) ER Description Make Model No Shakers:,<Descrl tion?> ``, l Shaker Screens Make Model Deck No._ Screen No. _. Scr Sz X (in) Scr Sz Y (in) _._ Shaker Screens Shaker Checks Screen Dens OF (Ib/gal) Hrs (hrs) '. Deck No. No. Scr Sz X (In) Scr Sz Y In) Stfln v ~~ ~ Shaker CheCkS ~ ~ ~ j ~~ ~ ~ Item Cost Bit Type Make Bit Inventory B t Ru Dena OF (Ib/gal) ' Dans OF (Ib/gal) ' Hrs (hrs) IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (Whr) Noules (/32") IADC Codes ,.. ~ ~. Model - Make .. , -. _ , , .,. .. ,, r BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) ;:: Centrifu elC clone Checks :. ' WOB (10001bf) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibt) ..Density Overflow (Ib/gal) Overflow Rate (gpm) - Bit RPM (rpm) Motor RPM (rpm) 'Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) Dens OF (Ib/gal) Underflow Rate (gpm) ~. ''.Houre (hrs) Oil Under FI (%) Dens FD (IWgal) H draulic Calculations AV DP (R/min) AV DC Wmin) Err ~- wa.. ~ ~-a; ; ~ ,sar. ~~~ .t , Mud'ditiv e Alno unts~~ .. ~ ~ a: tion Descri Cons DailyC Vendor ~ ost _ _ _ _ ,, _ _ ... p _ Drill Strin Com onents I ~ ~ Item Density ' Drift Cono Sz 'Con Sz gtm Angle LBSt CaSlllg Check _ - ~ Jts Description Len (ft) OD (tn) (Ibs/R) Grade ID (in) On) (in) Top Thrd' (in) Thrd Cum Len (R) (°) -Date ~ Type _ i f J % t F ~ J ~ v4 ~" y£(~" t i~ 5 d~L' f [5 t~R k 7Yq~N ~ ~' ~,: " ~. ~ ~ -~ 4k Last BOPJCheckr~'~*Y!G!i~q~'fi$, ~. .~~1 ~tt ~.~ ,G . ~111elltiores ;•r~~ r~. r, ~ t,. ~ ~ "" ~ ~ u,~~~ ~.~~~;~ ~ I~ ~:_ ~~, ~ P,~° ~ ~ Y~ .~'~ a ,.;'~ Tast Date Tese Type ° Welibore Name VS Dir (°) Kick Off Depth (RKB) Original Hole 'Formations '. Sample Top Formation Name MD (RKB) I Base Permafrost 19.0, ------^ IGfouna uevauvn pa I--~ - 19.00 Csg Run Date OD (In) oraae ~ 74 00 93 00 1/26/2007 16 H-40 65 00 F.,. a,, a ( ;~ Cement'', ~~~, ~t~ ;,~ a" ~,', , . z, Cmnt Dea Comment i 19 00 AF62035 74 00 93.00 ~ L ~~~~'~+~'Target Depth ( S Date Type ht 1130/2007 hli Hi CLEAR SIGNALS F/ OPERATORS a y os o _ s~ ~, J g g Safety ~~ , ~ ' ~ ' ' fi'°'~ ~' ~ a, Dally Mud Cost Mud Cum To Date ~ Dell SUmma - Over + 1 Under (-) AFE (+!-) Var Days I Lease 1 Road Conditions Wellbore Condition ( ) Weather SNOW ( Building Ice Road Depth start (ftKi3) Depth End (ftK8) 06:00 i ons @ Operat PHASE 3 BLOW I WORK IN SHOP ,Depth Progress (ft) Drilling Hours (hrs) Operations This Report Period WALLS & DRILLERS CONSOLE / ~ ,~ ~ ~~„,~~~ ~~ ` RIG IN CAMP, COMMS & a y ~ CHINK UP HOLES IN SHOP 1 SET UP WIND E ~ PX~`r=~~ `~ . ~~-~~'~ ~` t ta WAGE PLANT I INCINERATOR OPERATIONAL /BURN WAST • c ,t Daily Foreman Con SE Job Contaet Cell Phone - Operations Next Report Period RIG UP /RIG IN CAMP, COMMS, & SEWAGE PLANT ~.. ~ ' " '"P""k f ~ ~~~" " Time LO E~~ Depth End Rig Supervisor start Dur Ops Scheduled ation Trouble O ftKg) comment Bob Lupton, Ri Manager ( g Time (hrs) ~ Cat per Type Phase Major Op PZ 9 0 12 HR /RIG UP n V rdner-De 100 G `si 1 I D No Trbl Rig MovelUp Rig Rig Up Pianned' ( ) aT . a , Mud Pum g r 00:00 24.OO I Move/ D e ~ No. Pwr (hP) ,I ... Op ; ; 1 1,000.4 2.9921 UStk OR (bbl/s V d Checks: M ter (%) Mud Lost (Hole)(bbl) 'Uner Size (in) 'Stroke (in) % W . o u Calcium m IL H CEC for Cuttings Pf (mLImL) ( 9 ) a g 02 Density (Iblgal) p U30min) Filter Cake (/32") Pm (mUmL) .Potassium (mg/L) t ' Percent Oil (%) Mud Lost (Surf) (bbl) ' PUm Checks e (m FOtra Vis (s/qt) suokes Gel (1 Os) (Ibfl100f... Sand (%) MBT (Ib/bbi) Lime (Iblbbl) OII Water Ratio Mud Vol (Act) (bbl) ' Pres (psi) glow Spd (spm) EH % PV Over (cp) No ' ,Polymer (ppm) (%) LGS ~ ~) lid S LCM Mud Vol (Res) (bbl) Mud Pum s: 2 `Gardner-Denver PZ-9 s o -- YP Over (Ibf/10... Gel (10m) (Ibf/100... No. Pwr (hp) Rod Diameter (In) Chlorides (mg/L) HTHP Filt (mU30... T (U) (°F) Ibf1100 Alkalin (mLlml) Whole Mud Add (bbl) 2 1,000.4 2.9921 ~ ~ ... Type Gel (30m) ( '.Liner Size (in) Suoke (in) : VoUStk OR (bbl/s... t 9.02 Silicate (%) Elecuic Stab (V) Commen ~' `~ ~` .:,~ a. a~ ~ s ~ - F~-~,~ N . . ~..:~ ~ ,.,Pump Checks _ ~ :~ - suokes.. , . ~ ... Data + . ~.. in ;Shaker Makes Modei Pras (psi Slow S d (sPm) EH % ascription No Shakers:.<Df3scrl tlon?> ' Shaker Screens scr szx pn) Screen No. . scr szY pn- Make Model Deck No. Shaker Checks Hrs hrs Shaker Screens Dens OF (Iblgai) Deck No. Screen No. Scr Sz X in) Scr Sz Y In) Item min) Density Hole Top etm ' 6 A Drift Conn Sz Conn Sz Btm n... (Inl r~~ 7hrd . (In) Thrd Cum Len (ft) Formations Formation Name Base Permafrost e (gPrn) FD (Iblgap ; 74 00 I 93.00 I ~ 9.00 Csg Run Date -0D (In) Greae m pos~n~ 1 /26/2007 16 H-40 65.00 rlun ~..~.. ...... __-~--: Well Name: AMAGUQ #2 Date: 21112007, Report: 14.0, DFS: ~: b Type: Drilling -Original ,; Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) Ke-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup . ,556,97 79. Spud Date 74 00 93 00 19 00 P ( ) g Format on g Tar et ~e ,~° ~"`~ ~ s ~ aF` ~"^ zy,:~ 33N~. '~"~'+.t, ~.~,M. ?Ta 9e6DaOth5ftK83 a Safe `' x ~ ~- ~ F ~s x ~ Date Comment Type y ost Total um Cost To Date ail C C Safety Highlight 2/1/2007 FALL RESTRAINTS ~~ ~ ~~~~ ,~ 'D ..y ;:< h a»A~a 't .i +z F#~ r ..„ '° ~. Daily Mud Cost Mud Cum To Date Dail Summd f=~~ ~ ~~ .~ rz ~~- ~ Lease /Road Conditions Wellbore Condition Over (+) I Under (-) AFE (+l-) Var Days Weather CLEAR GOOD Depth Start (ftK8) Deplh End (ftK8) Operations @ 06:00 LAY DOWN MATTING I RIG RAMPS F/ DRAWWORKS pepth Progress (ft) Drilling Hours (hrs) Operations This Report Period LAY DOWN HERCULITE & MATTING /INSTALL DERRICK ON DRAWWORKS SKID I RIG IN CAMP, ~ ~_ ~ ;; . COMMS 8~ SEWAGE PLANT ~D~ilm"Foreman Contact Job Contact _ _Cell_Phone Operations Next Report Period ~ SET MATTING /SET DERRICK & DRAWWORKS IN SUB /RIG IN CAMP COMMS & SEWAGE PLANT ~ 5 .Start Dur Ops ~vSchedu s~ .~< x''""~,...~ _'„~~:,r.'~ . , i~.~r.,;;, r :sue-. ~ Time Lo `z led ' ° • Depth End Rig Supervisor ration Trouble (teKS) comment Bob Lupton, Rig Manager Time (hrs) cat Type Phase MaJorOp oPe Mtid•Pum s:.1,Gardner-Denver, PZ-9-_. 00:00 12.00 Drlg Planned Rig MovelUp Rig Rig Up No Trbl 100.0 12 HR I RIG UP ~ MOVe/...No. Pwr (hp) Rod Diameter (In) P 1 1,000.4 2.9921 MUd CiheC1C3: (Calcium ( ~ Water (%) Mud Lost (Hole) (bbl) ,..Liner Size (in) ,Stroke (in) Voi/Stk OR (bblls... Density (IWgal) pH CEC for Cuttings ~Pf (mLImL) ~ ~ ~ 9,02 Vis (slgt) FilVate (mU30min) Filter Cake (132") Pm (mLImL) Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) PUm Checks Strokes Mme (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbl) pre$ (psi) Slow Spd lspm) Eff (°k) PV Over (cp) Gel (tOs) (Ibf/100f... Sand (%) MBT (Ib/bbl) No -"-- LGS (%) ,,Polymer (ppm) LCM Mud Vol (Res) (bbl) .:. ~ ~- YP Over (Ibf/10... Gel (10m) (Ibf1100... Solids (%) Mud Pum -s: 2 Gardner-Denver PZ-9~- No. Pvrt (hp) Rod Diameter (in) Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mglL) ',HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) '' 2 1 000.4 2.9921 !. Liner Size (in) Stroke (in) VoIIStk OR (bbils... Silicate (%) ElecVic Stab (V) Comment 9.02 ~-~ q~Pum C ks -- _ __ ~r-.,r,.:. n~~~ , >~_: ~ ~ ~ _ .. utv'-. w,; ~; , •' .~ .. P h ~ C _ I Strokes JnaKer JCfet:na $tt 3zX(in) acrx~p~q Deck No. Screen No. Shaker Checks Hrs nrs) Dens OF IW al ' Bit ~ ~ ~ ~ ~ m - ~ _~-~ Drill Strings:.-~ ~...r_..__...-., ~' _ . • . ~ ~ _ ~ ~ Tree item core ran Screen I ~ No No. Scr Sz X (in) Scrl Sz Y (In) E. ker Checks i c 19.0 Ground Eievatlon (ft) Orig KB Elev (ft) ~IKB-Ground Distance (ft) COn(1UCt0~ Flp@ 100.UftK6 74.00 93.00 19.00 Csg Run Date OD (In) Grade TWt (Ibslft) 1 /26/2007 16 m ' ` H-40 65.00 r ,~. ~;` ~ys Ce ent ~,.i ~ ~ Cmnt Des ~+I€ . ~ ~~~, Comment KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Ori ft i ~ Amount Total AFE+Sup g ) on ( Ground Elevat Spud Date Rig Release Date 00 AF62035 23,556, 00 19 93 979.00 23.556,979.00 . . 74.00 ~ .~, ~ ~ ~ -;,, ' ~"9;~. '.Target Depth (ftKB) T _ ~ ~ ,~, ~, »~ ~ arget Formation ~ Y ~ ., .:' f ~~ ~ ~ fi' Comment ~ ~ ~~ ~ ~ ~ ~ ~~ Y ~~ ~ ~ Daily Cost Total T Cum Cost To Date T STOP WHEN IN DOUB Hi hli ht 2/2/2007 Safe 'S'f.4 b g 9 V:, ~~ ~ ' ~s, ~~.~Y: ~' ~r13:a~',.. ~ 4~3^~r:~'. A~4.~4 „ .'~~. ~°'i~/w ~~'``4~,p.' ~ - .Dail ~$Umma "-`' ,~ „`!~., --~ - '.Daily Mud Cost . llbore Conddlon Over (+) I Under (-) AFE (+l-) Var Days W Mud Cum To Date e Weather Lease /Road Condltlons CLEAR GOOD Depth Start (ftKB) Depth End (ftK6) Operations @ 06:00 RIG TO HOIST DERRICK Depth Progress (ft) Drilling Hours (hrs) ..Operations This Report Period IST DERRICK! RIG UP _ LAY DOWN MATTING I INSTALL DERRICK & DRAWWORKS IN SUB /RIG TO HO .:, CAMP, COMMS, & SEWAGE PLANT / RELIEVE SHAKERS & BLOCKS F/ AK LEASE Daily Foreman Cont act ~'' ' Operatlons Next Report Period Job Contact Cell Phone --- NKS & SHAKERS /RAISE DERRICK /RIG UP CAMP COMMS & SEWAGE PLANT ~hk ~ RIG UP /SET MUD TA ~.~ ~~~ ~rl ~ *,~~'~.;~'~~RI s:Do on AW 1 s. '~ x . ~ ~t ~` ~` ~: t ~:x -. .~ f~ ~~ ; ~ ~ ~ ~ , ~~ ~ ~s ~;, Time Lo Depftth End Start Dur Ops Scheduled RlgSupervisor Time (hrs) Cat Type Phase Ma or Op Operadon Trouble (KB) Comment BOb LUpton, Rig Manager No Trbl 100.0 12 HR /RIG UP 00 Drlg Planned Rig MovelUp Rig Rig Up Mud Pum s: 1;Gardner-Denver PZ-9 00:00 24 •. . Op I MOVe/... No. Pwr (hp) Rod Diameter (In) ~. 1 1,000.4 2.9921 Vol/Stk OR (bbl/s I e Mud Checks: % Water (%) Mud Lost (Hole) (bbi) Liner Size (in) Slrok /L ~ ~ ) Calcium (mg Density (Iblgal) pH CEC for Cuttings Pf (mLImL) ~2 Vis (slgt) Filtrate (mL130min) Filter Caka (132") Pm (mLImL) -Potassium (mg1L) Percent Oil (%) Mud Lost (Surf) (bbl) ',~ PUm Checks Strokes ,~ Ibf/100f Sand (%) MBT (Ib/bbl) 'Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) Pres jpai glow Spd (spm) Eff (%) ~ PV Over (cp) ... Gel (10s) ( N '~ o YP Over (IbfNO... Gel (tOm) (Ibf/100... Solids (%) LGS (%) (Polymer (ppm) LCM Mud Vol (Res) (bbq Mud Pum s: 2 Gardner-Denver' PZ-9 No. Pwr (hp) Rod Diameter (in) Type Gel (30m) (Ibfl100... T (fl) (°F) Chlorides (mglL) HTHP Filt (mU30... Alkalin (mLImL) Whole Mud Add (bbq 2 1,000.4 2.9921 Liner Slze (in) Stroke (in) VoAStk OR (bbl/s... Silicate (%) Electric Stab (V) Comment 9.02 :, ~ Pum Checks in Shaker -Data . , ~--;~ r ~ ~ ~~ ~. -€~ ~•::. r ~: .... P __ ~ _, ~... 5.~ . - Strokes ., ascription Make Modal pry psi SlowSpd (spm) Eff(% No Shaker Screens scrszY(In) Shakers:'zDescrl ton?> ' Deck No. Screen No. Scr Sz X (in) ,Make Model Shaker Checks Shaker Screens Hrs hrs) Screen Dens OF (Ibl al) Deck No. No. Scr Sz X (in) Scr Sz Y (In) ; _. _:.. ., .~ ,u. __ .. s: Drill Strin - ~ __ g Item Cost -- - ~ - - Bit Run Make Bit Inventory Bit Type $haker Checks Dens OF (Iblgaq Dens OF (Iblgal) Hrs (hrs (ADC Bit Dull TFA (incl Noz) (ink BHA ROP (ft/hr) Nozzles (132") (ADC Codes :` Make_ Model BHA No. Cum Depth (ft) SPP (psi) Flow Rate {gpm) ,TFO Reference Rot HL 00001... (Max. Hook Load (Ibf) -;. WOB (10001bf) Interval ROP (ftlhr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Centrifu elC clone Checks Density Overflow (Iblgal) Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) ,Cum Drili Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) Dens OF (Ib/gal) Underflow Rate (gpm) H draUI1C CaICUIatiOrlS Hours (hrs) OII Under FI (/) ,Dens FD (Iblgal) I AV DP (Rlmin) AV DC (ft/min) Err ,. ~''~ ~ `" ~' ' ~2 ,.~~ ~"~x, Ari,o ts~ INudl~dditive ... f Dauy cost vendor Drill Strin Com onents Mtr Descrtpflon cons..: Top Btm Bend ' ~ ~ ~y ` # ~ Angle ~'~' ~ r Y. ~, ~~' Item Density Drift Conn Sz 'Conn Sz Btm £~ ~~ ~ '~ ~' Ce sin Check ~~, T Thrd (in) Thrd Cum Len R O Lask i (In) T D n) op Jts Descrip0on Len (ft OD (In (Ibs/ft) Grade ID (in) ( YPe ~ ~ y s. rr.ir~ ~~ .y ~2fry <~., ,.~ gs .Y$1 A u c.,. fast BOP.Check nu.~~ ~z~ ~~~.a~. ~.a :~~~~~x~~ z: ~ A ~~ -° - ''; ~ a~, ~ '~ x ~„ ~~ ~ ~; ~' l6 - _,_ . ,. ,. ~ ~~ . , ores Wel Wellbore Name VS Dir (°) Kick Off Depth (ftK8) Test Date Test Type Original Hole -- Formations Sample Top Formation Name MD (ftKB) -.Base Permafrost 19.0 f2eport Printed: 21512007 , _, ~.~ r x < ~ ~_, .~ ,, ti . ,.:., ~,,. Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup Spud Date Rig Release Date 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 ^~+ ~. ~ E Target Depth (ftK8) (Target Formation . ' :S ~ J 1 , _ _ afe : - - ,~~. { .. ~.~ ;;~'; ~ ~ ~g`:a,~ ~~ r ;~es~ ~ r ~ ~ Comment Type Date ..Dally Cost Total Cum Cost To Date S afety Highlight 2!312007 HERC LOAD SAFETY t ,. fir. D dil SUmma ?°~~xe y,',.F ~`,r, ~~.~s.~r.~.anr~:^' ~.~~"°~ •~...~~°"~'~_- +. '";Daily Mud Cost Mud Cum To Date ditions Wellbore Condition Over (+) I Under (-) AFE (+l-) Var Days d C I R W on oa eather Lease C LEAR GOOD Depth Start (ftK8) Depth End (ftKB) O perations @ 00:00 S ET IN SHAKER TANK Depth Progress (ft) Drnnng Hours (hrs) ;. O perations This Repoli Period TO HOIST DERRICK /INSTALL 8~ STRING BLOCKS !SET SHAKERS ON SHAKER TANK /RIG IN P REP ANT / RELIEVE 2 MUDMUMPS 8 PUMP HOUSE #1 F/ AK LEASE tact C m o C on an re Daily F AMP, COMMS, & SEWAGE PL ~ . ' O perations Next Report Period Job Contact _ Cell Phone UD TANKS /STAND DERRICK /RIG IN CAMP COMMS & SEWAGE PLANT S ET M Do on AW R s : Y fi ~ a, ~ ~r~- ~ ~~ ~ ~~ t ~ ~ p ~-~~r~..,,~ Depth End Rig Supervisor Start Dur Ops Scheduled Major Op Operation Trouble lftK6) Comment BOb Lupton, Rig Manager T h ype P ase Time (hrs) Cat Planned Rig MovelUp Rig Rig Up No Trbl 100.0 12 HR /RIG UP Mtid Pum s: 1, Gardner-Df3nver PZ-9 00 Drl 00 24 00 g . : ~p MOVe/... No. Pwr (hp) Rod Diameter (In) 1 1,000.4 2.9921 Vol/Stk OR (bblls... 1 e ( Mud Checks:'- Water (°/) Mud Lost (Hole) (bbl) I, Liner Size (in) Strok /L ~°/ l i ~~ ~~ 2 O O ) . um (mg c Ca Density (Iblgal) pH CEC for Cuttings Pf (mUmL) Vls (s/qt) Filtrate (mU30min) Filter Cake Q32") Pm (mLImL) ',Potassium (mglL) Percent OII (%) Mud Lost (Surf) (bbl) PUm Checks . Strokes PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) '~.Llme (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbl) Pires.(psi) Siow Spd (spm) Eft (%) No -- YP Over (Ibf110... Gel (10m) (Ibf1100... Solids (%) LGS (°~) 'Polymer (ppm) LCM Mud Vol (Res) (bbl) ,MUd PUm ~ S: 2 GafdneM1D6nVe~ PZ-9 . No. Pwr (hp) Rod Diameter (in) Type Gel (30m) (IbfN00... T (ft) (°F) Chlorides (mg/L) 'HTHP Flit (mU30... Alkalin (mLlml) Whole Mud Add (bbq 2 1,000.4 2.9921 Liner Size (in) Stroke (in) VollStk OR (bblls... ~~ Electric Stab (V) Comment 9.02 Silicate (%) ( ~- :, ,~,° zr,. ~ _ =~ ~,2 Pump Checks ~. »-~~, .. .. Y Strokes in Shaker Data ,.-~'.~~± ~f~ ^; ~ -.~,.~ ~F$~,_ ~ :° _ _ _ _ "~"` - `. e;,"' ~ Model ascription Make Pres (psi Slow Spd (spm) Eft (% No Shaker Screens scrszr In) Shakers:<Descrl tlon?> Deck No. Screen No. Scr Sz X (In) Make Model Shaker Screens Shaker Checks ~ Hro hre Dens OF Ib/ al) Screen ~~ ,. ~ Deek No. No. Ser Sz X (In) Scr Sz Y (In) ,,, ._ _ , ill Sfrjn s: - . .' ° _ D r °' BitT pe Item Cost Bit Run Make ~ Blt Inventory ~ Y Shaker CheClCs '.'DensOF (Ibigal).~ Dens OF (IWgap Hrs hrs) ' (ADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ff/hr) Nozzles (132") (ADC Codes i 4--_-_-_'- i ,,. - :. - ~ ;: .. ,., _ ,. .,e, Make Medal _ BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) WOB (10001bf) Interval ROP (ftlhr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) (-.entrlfU e/C clone Checks Density Overflow (Iblgaq Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) ' Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (1000Ibt) ~, Dens OF (I Wgaq Underflow Rate (gpm) H draUI1C CaICUIatlOn3 Hours (hrs) ,Oil Under FI (%) Dens FD (Iblgal) AV DP (ftlmin AV DC (it/min) Err =Ad it~ve %~mounts ~`~'^~ ~ °~~~: ~ Deserfpnon cons... Dauycose Vendor -Drill Strin Com onents ~, ;, Bend Top Btm Density ' Drift Conn Sz Conn Sz Btm A(j a Last Ca~s~I`n 'C et:k~'~ ~~3 . Item . Jts DescrlpUon Len (ft) OD in (Ibs/ft) Grade ID (in (In) t ) Top Thrd ~ ) Thrd Cum Len ft) Date TYPe ~, ~ s ~ ~ ~ •~ ~.. u ,.'* . ~ , a.~ ,., Last BOP.Check. ~:~P~~~ ~ u'~1~,~.. ,~ , .. F 4'F ~kf~s~~~ ' Vlleltbores~ • ~ , . ~ , . . , Kick Off Depth (ftK8) Test Date Test T pe V3 Dir (°) Wellbore Name Original Hole Formations Sample Top Formation Name MD (ftK6) 'Base Permafrost 19.0 Well. Name: E Job Type: Dr 74 00 I 93.00 I 19.00 ,Csg Run Date oD pn) Grade wt (iosm~ 1 /26/2007 16 H-40 65.00 aoo apua ~aaa -- I 74.00 93 00 y U HrOGUJA LJ,JJV,o ~ 9 ' ~ ~ -~ ~~ ~ ~ ~ ° Formation # .)Target Depth (kKe) Tar et ~;~ tf~ ~ .. ,; " . • ; ~~ ~;~ ~ , ~ ~ ~ , ~,{ ~ Safe , ~ ~ ,~ ~~ l Type Date Comment Daily Cost Total Cum Cost To Date Safety Highlight 2/4/2007 RAISE DERRICK ,, _ ~ ~ x ~ ,Daily Mud Cost Mud Cum TO Date ~'~ Daii Summa . _ • - ~= + = w ~ ~ °'- "<~+x ' "~" ~'}~ k•°s~ ~ ~ Wellbore Condition Over (+) I Under (-) AFE (+I-) Var Days Weather Lease 1 Road Condiflons O.C. GOOD 'DepthStart (kK6) Depth End (kK8) Operations @ 06:00 RIG IN TESCO Depth Progress (k) Drilling Hours (hrs) Operations This Repoli Period & SEWAGE PLANT COMMS SE DERRICK /RIG IN CAMP _J_ _ _ , -- , , SET MUD TANKS /RAI 4 + a operations Next Repoli Period DRIVE i RIG UP DOGHOUSE /RIG IN CAMP COMMS & SEWAGE PLANT ct •i~aily Foreman Cont __ Job Cont Gell Phone act " ~ ~~~ n? _ RIG IN TOP T~ ~~'1~' 't•" y3f~ ~ F 8~~'&-3 ~'i. '~?Yy . _ _ ~ __ _ ~ .'_~S+' ~ ~ . ,, . _ ~.' Time Lo ;... r.. .. ~r ~. _.....;.,~~.~.,..-, ~~~` ~ ~, ... ~, Depth End ~ x ? _, C~.Tr ~+ " Rf s: Do on AW Start Dur Ops Scheduled Time (hrs) Cat Type Phase Major Op Operation Trouble (i1K8) Comment Rig Supervisor 00:00 24.00 Drlg Planned Rig Move/Up Rig Rig Up No Trbl 100.0 12 HR /RIG UP gob Lupton, Rig Manager pp Movel... Mud Pum s: 1; Gardner-Denver PZ-9 • '. ~ ! ;No, Pwr (hp) Rod Diameter (In) 9921 ks: ' 4 2 d Ch ~~ ec Mu Calcium (mglL) % Water (%) " Density (Ib/gal) pH CEC for Cuttings Pi (mL/mL) . Mud Lost (Hole) (bbl) , 1 1,000. Liner Size (in) Stroke (In) Vol/Stk OR (bblls... Filter Cake (/32") Pm (mLImL) Potassium (mglL) Percent Oil (%) 0 i Mud Lost (Surf) (bbl) '. 9.Q2 n) m Vis (s/qt) Filtrate (mL/3 PV Over (cp) Gel (t Os) (Ibf/100t... Sand (%) MBT (Iblbbl) .Lime (ItJbbi) OII Water Ratio Mud Vol (Act) (bbq PUm Checks SVOkes Pres (psq Siow Spd tspm) Eff %) : YP Over (Ibf/10... Gel (tOm) (IbfN00... Salida (%) LGS (%) ,Polymer (ppm) LCM Mud Vol (Res) (bbl) NO Mud Pum 's: 2, Gardner-Denver, PZ-9 Mud Add (bbl) l Wh ~ Type Gel (30m) (Ibf1700... T (fl) (°F) Chlondes (mg/L) '.HTHP Filt (mLBO... Alkalin (mlJmL) e o Rod Diameter (In) No Pwr (hp) 2 1,000.4 2.9921 .Silicate (%) Electric Stab (V) Comment Liner Size (In) ' Stroke Qn) Vo1/Stk OR (bbl/s... ~~ _ _ 9.02 in Shaker Data •.~ ~" ~ ~-• Model Pump Checks - scription Make ~~- SVakes _ _ Pres pal Slow S tsPnt) Eft °~ Shaker Screens scr Sz x (in) scr sz Y (in) NO Deck No. Serean No. __ _ SFakers::<DBSCrI tion?> - Make Model Shaker Checks _ _ Hrs (hn) - Dens OF (Ib/ aq !Shaker Screens screen Deck No. No. Scr Sz X (In) Scr SzY (In) Drill Strin S: Bit Type Item Cost .Bit Run Make Bit Inventory Shaker Checks '.'` IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ftlhr) Noules (/32") IADC Codes -.,Dens OF (IWgal) Dens OF (Ibfgal) Hrs (hrs) ~ ~ " y _ ~ " Rot HL (1 Flow Rate (gpm) TFO Reference BHA No. Cum Depth (k) SPP (psi) 0001... Max. Hook load (Ibf) • Model Make i WOB (10001bf) Interval ROP (R/hr) Total ROP (ftlhr) Drilling Tlme (hrs) Drilling Torque PU HL (10001bf) Max.Over-Pull (Ibf) CentrlfU9eIC)ICIOrte Checks ~_ ~ Density Overflow (Ib/gal) Overflow Rate (gpm) Cum Drill Time (hrs) OR Bottom Torque Torque Units SO HL (10001bf) Bit RPM (rpm) Motor RPM (rpm) .Dens OF (Ib/gal) Underflow Rate (gpm) Hydraulic Calculations Erc AV DP (ftlmin) AV DC ftlmin .Hours (hrs) Oll Under FI (%) I,Dens FD (Iblgal) '~ ~'~ ~ ' Drill Strin Com onents I .~:~ " ~ ~ 1' ~I fVtA~un ~~t Mtr Mud Bend Description Cons... Dally Cost Vendor Top Btm Drift Conn Sz Conn Sz Btm Angle Density ~ ~ + ' ~ ~ : r () ~ ~ « Item ~ ,~ ,s ~, ; ~;~, .~ ~,,~ ~`~, Description Len k OD In (Ibslft) ,Grade ID (In) (In) tin) Top Thrd' (in) Thrd Cum Len (k) ~~ () Last Casin Check ~. ~;~ ~. t ~ ~ e _ ~x~ ~ , ~ n ~ Date TYPe ~ ~, Welibores ,,~ ~ ~ ,x~" ~~ ~, . ,~.v ~~ k. VS Dir (°) Klek Off Depth (kK6) _ ~ ~, Ott` ~ ;LastISOP`Cf~eck,'~:,.~ ...r ~ , , ;,.~... Wellbore Name Original Hole Test Date Test Type Formations Sample Top Formation Name MD (kK8) Base Permafrost 19.0 ud Date Rig Release Date S n (ft) ~ ~ t lo Ground EI E No. Once~(ft) AF v (ft)~~ ~ KB-Groun19is 83 l e Orlg~K Total AFE Amount Total AFE+Sup p O ~~ O A g O g g F62035 23,556,979.00 zs.556,979.00 , ~~ Target Depth (RKB) ~ *~ ..~ ~.~ { $: ,~ "s ~ ~ Target Formation S , r y ~ afe ~~~ ,~,,~ ,~, ~ , ~ ~, ~ ~~ , ~; ~~ ..~.-:•~~.~. ~ . t S Type Date afety Highlight 2!512007 Commen SNOW 8~ STEEL SLIPPERY 'Daily Cost7otal u ~ Cum Cost To Date D W x°' Dauy Mad cost Mua cam Tc Data ail" :Summa ~_ . p.~- , ~„~ - > r ~ ~ ..~ r °~ - eather Lease /Road Condlflons M ° Wellbore Condition ~ Over (+) /Under (-) AFE (+/-) Var Days C LEAR GOOD ,Depth Star! (ftK8) Depth End (ftK6) .O perations @ 06:00 ' RIG IN PUMP /ALL BUILDINGS IN PLACE Depth Progress (ft) Drilling Hours (hrs) ~. O perations This Report Perlod RIG IN DOG HOUSE ~ WATER TANK /RIG IN PUMP BUILDINGS 8 MOVE IN PUMPS /SPOT GEN ~, ~, SHACKS 8~ BOILER /BUILD SHALE CONTAINMENT /RIG IN CAMP, COMMS, Z3< SEWAGE PLANT Daih Foreman Contact •. .O perations Next Report Period Job Contact Cell Phone STEAM & FUEL LINES I RIG IN TOP DRIVE /RIG IN CAMP & SEWAGE PLANT _ ~ ELEC WATER , , RIG IN a~ r i~ M <.~ ~ k M t ~K•wr~ Y 16 ~ ~ F ~" ~r ,~a i ,~~-M~ t - , ~~u ~» 1. ~ ~ .~"~~~RI s: Do on~AW ~"~'~" w s ~~ .~ ?~ ~ '~ ~ ~ ` ~ . . ..b„ ,x.a . ,~~ k .• , .~ ~~, . ,. > . ~a o ~ Time L StaA Dur Opa Scheduled Depth End Rig Supervisor pe Phase Major Op O eration Trouble (fuc6) Comment Bob Lupton, Rig Manager Cat T h Ti y rs) me ( 00:00 24.00 Drig Planned Rig MovelUp Rig Rig Up ' No Trbl 100.0 RIG UP Mud Purl s: 1,Gardner-Denver PZ-9 pp Move/... ~ No. Pwr (hp) Rod Diameter (in) 1 1,000.4 2.9921 Stroke (in) Vol/Stk OR (bbl/s... ~' i bi Si • 3. d r n) ) Liner ze ( (mg/L) % Water (%) Mud Lost (Hole) (b pH CEC for Cuttings Pf (mlJmL) Calcium ity (b gak Dens 9.02 '~ Vis (s/qt) Filtrate (mU30min) Filter Cake (132") Pm (mUmL) ,Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbi) '~_ PUm Checks strokes ~, PV Over (cp) Gel (tOs) (IbfN00E.. Sand (%) MBT (Ib/bbl) 'Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbi) Pres (psi) Slow Spd (spm) Eff (%) ~ No .~' YP Over (Ibf/10... Gel (tOm) (Ibf/100... Solids (%) LGS (%) ,Polymer (ppm) LCM Mud Vol (Res) (bbl) MUd PUm - S: 2 Gardner-D@nVer PZ-9 ~~~ Rod Diameter (In) No. Pwr (hP) . '' Type Gel (30m) (Ibf1100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mL/mL) Whole Mud Add (b 2 1,000.4 2.9921 ~~.. Liner Size (I n) Stroke (in) Vol/Stk OR (bblls... Silicate (%) Electric Stab (V) Comment I '~.. 9.1)2 ~ in ShakerData -? ~ ~~ .~t~ ~~ ~ *.~ ,mow ~-~~. `.>~ ~d ~~~".~•,'.~_: ~ -~~~~ ,.~s, , ~' w~: Pump Checks _ . ~.~, ,~- ~ ~• ~ svoiies ascription Make Modal .Free psi SlowSpd (sPm) Eff(k No Shaker Screens Shakers: <Descrl Ion1> Scr 3z Y (In) Deck No. Screen No. Scr Sz X (In ~, Make Model Shaker Checks Hrs (h~- Shaker Screens Dens OF (Ib/ al Screen - ~ Deck No. No. Scr Sz X (In) Scr Sz Y In) DriII Strin s: '; _ __ _ _: C : .... .::.. . ~ ..:. - ost . .. - Item Bit Run Make Bit Inventory I,Bit Type ' Shaker CtteCkS Dena OF (Ib/gal) Dens OF (IWgal) Hrs (hrs) ' . IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (ft/hr) Noules (/32") IADC Codes ~ ~. ~ . l Model Make BHA No. Cum De th ft SPP si Flow Rate m iTFO Reference Rot HL (10001... Max. Hook Load (Ibf) (9P 1 WOB (10001bt) Interval ROP (Whr) Total ROP (ftlhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) CentrifU e/C clone Checks Density Overflow (Ib/gal) Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) ' Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) ~~ Dens OF (Ib/gal) Underflow Rate (gpm) H draUI1C CalCUIatIOnS Hours (hrs) OI(Under Fl (%) '',Dens FD (Ib/gal) '; E rr AV DP (it/min) AV DC ftlmin) ` A ' ~ ~` ~~~ t.~ ~ =Mu~ATaati~~~e ~„o~nts~ DriII Strin Com onents Mtr Description Cons... Dagycost vendor Top Btm Bend ~T~ ~ " j a~¢ ~ An le g „~~ ~ Sz t r ~ , m B Item Density Drift Conn Sz Conn m (°) =Las~Oasn Ch ck ~ ,~~ ~:e (Ibs/ft) Grade ID in) (In) (1n) Top Thrd' ( ) Thrd Cum Len (ft OD i i n ~~ Descript on Len (ft) Date TYpe -..y .. ~. ,J-`^1~' sw;~o ,Y'~''-~i`r `~~` rid ~ r~`.~ .. ~ ~Y '~' ~r ;`~Kr~"~~~'~a>".-~^ ~k~.6.. ,s~z '~.~',.. y'~" C~-,'" ~-~ * ~'{~ ~i: last;BOP Cht#ck,< - ~ "~ ~~' ~ ~" ~: Wellli . ores .-- ~ • ~ Wellbore Name VS Dir (°) Kick Off Depth (RKB) Test Date Test Type Original Hole Formations Sample Tap Formation Name Mp (ftK6) '.Base Permafrost 19.0 - •` Report Printed:. 216/2007 ~~ ' i Total AFE Amount Total AFE+Sup (ft) AFE No t Di . ance s e Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground R l i eas g e b Spud Date R 00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 74 . S x .. ~cr .~•sy s~` ~ ~~Target Depth (ftKB) Target Formation _ ~..,~ S . ~ ~ ~ ~ ~ ~ ; ~~ ~ Y. ~ afe - ~.~Bn Type ~~ Date Comment Daily Cost Total Cum Cost To Date S afety Highlight ~ 2/6/2007 Spicks !Footwear Y ~. ,,; x i~ ` -'~' r~" D >_ - .:~ ail $Umma x' ~" .Dally Mud Cost ,Mud Cum To Date Wellbore Condition a ~ Over (+) l~er (-) AFE (+/-) Var Days W eather Lease I Road Conditions C lear GOOD Depth Start (ftKB) Depth End (ftKB) O perations @ 06:00 C ontinue to Rig up Top Drive .Depth Progress (ft) Drilling Hours (hrs) .O perations This Report Period Boilers,Fuel hotwell Complex ,Place Air Heaters on Both ~ ----~- ~_ r~ Generator #1 & 2 lex C S , , omp pot #2 Mud Pump out before starting them String Power Cords ,Lift Shaker auger between Pitts Bump back 'Dail' ForBrd~n Contact t d t ~ ' G S o ry ors enea --T®b ~Qntact _Cell Phone __ haker Complex ,Connect Air Lines, Steam Lines ,Respot Shaker Pit . (Lineup) Start to hook up Tourgue Tub -- ~ `f - or Top drive . RI 8: D0 On AW ~ `: O ' perations Next Report Period Continue on To Dnve/ Work on Pumps back together Rig supervisor ~" p "` Rig Manager ~~-~. ~« ~' ;f Bob Lupton, ~ ~: .T - ~ ~ ~ .; ~ 1 t enp er PZ-9: rdner-D ime l:o 4.. .. u~~,a; ;• =~~ ~-~~-~ ~ °~' ~ De th End Muti Pum 's: ~ ~ p Start Dur Ops Scheduled ration '~ Trouble (ftKB) Comment No. Pwr (hp) lameter (in) e Phase MaJor Op Ope _ t T C 21 _ yp a Time (hrs) 0,4 2.99 1 00 . ~ ,~ ';Liner Size (In) 'Sroke (inj VollStk OR (bblls... .. 9 02 . Mud Checks: .:. s Pf (mUmL) Calcium (mg/L) /° Water (%) Mud Lost (Hole) (bbl) CEC for Cutting ° Density (Iblgal) pH 'Pum Checks bl ) - Strokes t) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent Oil (%) Mud Lost (SurQ (b Vls (s/ m) Eff (%) s q P Pres (psp Slow Spd ( PV Over (cp) Gel (1 Os) (Ibf/t00f... Sand (%) MBT (Iblbbl) 'Lime (Iblbbq Oil Water Ratio Mud Vol (Act) (bbl) NO PZ 9 , D - enver Mud Pum s: 2, Gardner- YP Over (Ibfl10... Gel (10m) (IbfN00... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbq No p~ lhP) Rod Diameter (in) 921 2 1,000.4 2.9 T Gel (30m) (IbH100... T (fl) (°F) Chlorides (mg/L) ~ HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) '. Liner Size (in) ,Stroke (in) VollStk OR (bblis... ype 9.02 ilicate (%) ElecVic Stab (V) Comment PUmp Checks __ ~- _ ~ s ; ~ 3 Eff% r ~~-~~, SlowSpd (spur) ;.a::..~n~,. s . ~.,..c_. , Prespsl) ,, ~ ,. ., .: ?~:a~~* .:~x'_ rl`... M D~ in`Shake`r`.Data _ .~~~ - r°°"'°°' l ' "" " "` ~~ Mode Description Make NO ?> < rC'ti on < Desc Sfiakers: Shaker Screens Scr S2 Y (In) Make Model _ (In) Ser SzX . _. _ _... Deck No. Sereen No. -. __. -._ _ Shaker Screens Shaker Checks screen No. Scr Sz X (in) Scr Sz Y In) Hro (hro) 'Deck No . Dens OF (Iblgal) Drill Strin s: 'Shaker Checks h C t ' H ' rs) os ro ( Dens OF (Iblgal) Bit Type Item pens OF Qblgap Bit Run Make Bit Inventory IADC Bit Dull TFA (Incl Noz) (in') BHA ROP (ft/hr) Nozzles (/32") IADC Codes __ Make Model ,,. , ,_1 .• ~ Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) , C6ntrlfU e1C clone Checks BHA No. Cum Depth (ft) SPP (psi) Density Overflow (Iblgal) Overflow Rate (gPm) ` - WOB (10001bf) Interval ROP (ft/hr) Total ROP (Whr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) ~., Dens OF (Ib/gal) Underfloor Rate (gpm) Blt RPM (rpm) Motor RPM (rpm) !Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (tD001bf) ,Hours (hrs) Oll Under FI (%) 'Dens FD (Iblgal) H draulic Calculations Err ~''"~~*. ,~ ~~'`~` ~ ~ ~~b ~u e ~~ ? ^.~ '~° dIt~Y@ ~P 1 1~ d ~ a ^ . , . ~ - . , > U ~4 AV DP (ft/min) AV DC (ftlmin) - Description Cons.... Dally Cost Vendor Drill Strin Com onents Mtr - ~: ~- ~ ~~ ~~ Top S Btm Conn Sz Btm ~ 4 Band ~ ~ Angle ~•l:ast`Casln _C eck ~ av~x«~ T Item D I Density (Ibs/ft) ' Grade z Drift Conn in ID (In) hn) ( ) ~ ~ (in) Thrd Top Thrd (.) Data YPe Cum Len (ft) ~~ Description Len (ft) ( n) O .. ' ' :~.. ~ 'Las ~.~~. t~BOI'D sec : ,:. ~ ; ~~ ~ ~ ~ ~ Y _ - strype Well bores •~~ ~ -~:- - ~'~ ' VS Dlr (°) Kick Off Depth (ftKB) Welibore Name Original Hole Formations Sample Top Formation Name MD (ftKB) Base Permafrost 19.0 Report Printed: 21812007 r- 74.00 ~ 93.00 ~ 19.00 1 /26/2007 16 I H-40 I 65.00 --'~~,~~~~~ r ~ ., 'errient ~~ ~ ~~ ~ ~ ~ - ~ - --- -, J ob Spud Date - 'Rig Release Date Ground Elevation (ft) Orig K8 Elev (R) KB-Ground ulstanee tn/ nre rvo. iowi iarc rvnoune ~ocai nrc~aup - 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 -:vzc .~-.f. ~'~= et' ~- ~ ~ ".~r~. ~ - ~ -iTarget Depth (kK8) Safe ~ ~ . _ ~,z ~ ~,~.~ ~ ~"~~. ~ ter- _- ~_ ~ ~ _ ~~~ ~ Targef Formation Type Date Comment ,Daily Cost Total Cum Cost To Date ~. D il Su ~ a ^~a ~S.y~:• Y:'. t .y '.~ . 3 4~ s., ~` ~ 4 , 4r . ~.: . .0 i WY Y ...Y '~ c mma > a (+/-) Var Days Dally Mud Cost Mud Cum To Date Weather -Lease I Road Conditions Wellbore Condition Over (+) /Under (-) AFE Clear GOOD Depth Start (ftK6) Depth End (ftKB) Operations @ 06:00 Continue Rigging up Top Drive /Rig in Pumps ~ Depth Progress (ft) Drilling Hours (hrs) '~~ Operations This Report Period Trucks Moving Herc Loads from #7 Strip to Amaguq /Continue Rigging Top Drive /Spot Pump in Pump House ~' ~ , 8~ Start Rigging in !Spot Sperry Sun Connex/ Fuel Lines Hooked up ~ ~'~ ~ ~ ~ ~<` ' ,Dail ~,Ffi~emarr'Cfirttact. ,~ ~` ~ ~~ 7~ ''- Operations Next Report Period Job Contact Cell Phone Continue on Top Drive Hookup/ Boiler Running Time Co w...; ... ~ ~~``_:. ~ ,~, x~^ ~ „ t ~` ~ .~. ~-> ~. w°~ `~ ~ ; :~ ~ , ~ ~` ~ `.: RI s: Do on AW Start Dur Ops Scheduled Depth End. Rig Supervisor Time (hrs) Cat Type Phase Ma)orOp -0peretlon I Trouble l~Bl Commont BOb Lupton, Rig Manager Mud~Puin`s:1,Gar'dner-Denver'PZ-9 i1AUd~CheckS: ?.. _ `~ No. Pwr (hp) Rod Diameter (in) Density (Ib/gal) pH CEC for Cuttings Pf (mlJmL) .Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) ~, 1 1,000.4 2.9921 Liner Size (In) ISVOke (in) VollStk OR (bblls... Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mLImL) .Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) ', '. 9.02 PV Over (cp) Gel (f Os) (Ibfl100L.. Sand (%) M8T (Ib/bbl) 'Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) PUm CheCICS ' SVokes ~ Pres (psi) Slow Spd (spm) Eff (%) ! ;. YP Over (Ibf/10... Gel (10m) (IbN100... Solids (%) LGS (%) Polymer (ppm) LCM Mutl Vol (Res) (bbl) No iiAUd PUm "~ S: 2 Gardner.-Denver PZ-9 ~,:. Type Gel (30m) (Ibf/100... T (Fl) (°F) Chlorides (mg/L) HTHP Flit (mL130... Alkalin (mUmL) Whole Mud Add (bbl) NO. Pwr (hp) Rod Diameter (In) ~ 2 1,000.4 2.9921 ~~ Silicate (%) Electric Stab (V) Comment ILiner Size (in) SVOke (in) VollStk OR (bblls... „ 9 02 .' ~~"~' ~r~''ti~':~~ ~,' ,s~s;~ . ~ ~ , ~ . ~„>~ ~ D in 'Shakerbata` ~ . .. ~ ,.., Description Make Model Pump Checks SVOkes _ _ _ _ Pres (psi Slow Spd tsPm) Eff %) Shaker SCreenS { NO Deck No. Screen No. Scr Sz X (In) Ser Sz Y (In) ' ` Shakers: sDescrt tion?> : Make Model Shaker Checks -_ _.. ..._..._ __ Hra (hrs) Dens OF (Iblgal) . :Shaker Screens Screen Drill Strin S: ~' Deck No. No. Ser Sz X (In) Scr Sz Y (In) Bit Run Make Bit Inventory BR Type Item Cost Shaker Checks " ) IADC codes IADC Bit Dull TFA (loci Noz) (in') BHA ROP (Whr) Nozzles (/32 i Dens OF Iblgal) 'Dens OF (Ib/gaq Hrs (hrs) ~ ~~ BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) -, ~ Make Model ' WOB (10001bf) Interval ROP (tUhr) Total ROP (ft/hr) Drilling Tlme (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ili ',Centrifu elC clone Checks Bit RPM (rpm) Motor RPM (rpm) '~ Cum Drill Time (hrs) OR Bottom Torque Torque Units 50 HL (10001bf) Density Overflow (Iblgal) Overflow Rate (gpm) - Dens OF (Ib/gal) UnderFlOw Rate (gpm) H draUIIC Ca1CUlatiOriS AV DP ft/min) AV DC (ft/min) '' Err Hours (hrs) OIIUnder Fl (%) 'Dens FD (Iblgal) Drill Strin Com onents ~ ~ ~~ s~' ~ ~ i noin IiA a aadit ( Mtr ~ ~ , Al t e , ~; Top etm Description ' Bend . Cons:.. Dally Cost - Vendor Item Density ' Drift Conn Sz Conn Sz Btm ' Angle - ° - Jts Description Len (ft) OD In (Ibs/ft) Grade ID (in) ' (In) iIN Top Thrd I (In) Thrd Cum Len (ft) ( ) w,, _ ~ ;; ~ i ' ~' ~' ~ 4r '~°~ ' ~ ~' ~ ~ ~~ ~ y r^^t~ _ ` .~: CastCasin Check Date ~ TYm~ " . ~ ~ ~„~. . ~. d *~ ~. I VS Dir (°) Kick Off Depth (ftK6) Wellbore Name k~ ' ~ ' ~x'°~~ °B !<Ch 'La .~ , „ ~ ec st OP Original Hole Test Date Test Ty Formations Sample Top Formation Name MD (ftK6) 'Base Permafrost 19.0 Report Printed: 21812007. Ground Elevation (ft) Orig KB Elev (ft) KB Ground Dista 74.00 93.00 19.00 1 /26/2007 16 H-40 65.00 ~ ~ ~ v apua uace .rug rceiease uate ~rountl Elevation (n) Orig KB Elev (ft) KB-Ground Distance (ft) '..AFE No. Total AFE Amount Total AFE+Sup '.; 74.00 93.00 19.00 AF62035 23,556,979.00 23,556,979.00 , . ~,";Target Depth (ftK6) Target Formation $af@ ^x- ~ e,;^ ;.~ c~ .~~i n, ~ r`~vx7" "r` ,,~;-, .~~= ~ _, Type Date Comment Dally Cost Total Cum Cost To Date Dell Sumrna~ ;r "~. a,~!~L~7= .~~ - y., ~ '. Daily Mud Cost Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (~) AFE (+!-) Var Days - Mud Cum To Date Clear GOOD Operations Q 06:00 i Depth Star) (ftK6) Depth End (ftK6) Restring T.Drive S.Loop/Plan to Cmt Cond.this aft. ' Operations Thls Report Period -.Depth Progress (ft) Drilling Hours (hrs) Problems with Support Lines for the Top Drive 1/3 of the Lines were hooked up back wards 8~ Spooled onto the Reel ,Was not discovered till Lines were wrapped 8~ Strung in Derrick /Install #2 Pump back in Pumphouse / " s ° ~ ~~,~'~~ ~;~*` sk~' ,~~ ~ "`~, Restring Top Drive Support Lines /Spot Sperry Connex's /PSI Running & setting up their equipment/ Fired Dail ~Foreman;Ctintact ` ~~ ~`;~:, ~, ~ Boiler ~ Run Steam Thru Modules up to Sub /Cruz building Berm for Fuel ISO's Job Contact _ Cell Phone Operations Next Report Period RI 8: DO On AW .: Cement Conductor Pipe/Continue with Top Drive Hookup Rig Supervisor ~ ' - ~ ~ .-, ., , _ _ ~ `' `" z Bob Lupton, Rig Manager Time Lo ~- < . ~ ~W-~ ', 3_. r~ ~< ~ ~ ~~~ Start Dur Ops scheduled ~ Depth end - ~ ~-~ Mud Pum' s: 1,Gardner-Denver'-PZ-9 Time (hrs) Cat Typa Phase MajorOp Operation Trouble (ftKB) Comment No. Pwr(hp) RodDlameter(fn) 1 1,000.4 2.9921 iVIUd CheCkS: , `' ~ r "' s ' Liner Size (in) Stroke (in) VoUStk OR (bbl/s... ~ _ Density (Ib/gal) pH CEC for Cuttings Pf (mL/mL) -- Calcium (mg/L) ~~ % Water ~(%) "~ Mud Lost (Hole) (bbl)~'~. ~ 9.02 Vis (slgt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) ;Potassium (mg/L) Percent Oil (%) Mud Lost (Surd (bbl) ~' PUm Checks Strokes Pres (psi) Slow Spd (spm) Eff (%) PV Over (cp) Gel (1Ds) (Ibf/100f... Sand (%) MBT (Ib/bbl) ' Lime (IlNbbl) OII Water Ratio Mud Vol (Act) (bbl) ~.. NO YP Over (Ibf/10... Gel (10m) (IbfA00... Soilds (%) LGS (%) Polymer (ppm) LCM Mud vol (Res) (bbq Mud Pum ~ s: 2~Gerdner-Denver PZ-9 ' NO. Pwr (hp) Rod Diameter (in) Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mglL) '~.HTHP Filt (mU30... Alkalln (mUmL) Whole Mud Add (bbl) 2 1'000'4 2.9921 Llnar Size (in) .Stroke (In) VoUStk OR (bbl/s... 9.02 Silicate (%) ElecWC Stab (1/) Comment Pump Checks strokes `. -~ D in Shaker'Data - `: ~ o ~~ b .~ `' `~~`` ~'~~ '~ ~ ~~ ~ - ~` ~ ~ , . ,~ ~r . ~, . .. _; :.. ;_, .. 'T'` ` `- '~.' ° '"' °• - Pres psi Slow Spd isPm) Eft (% Description Make Model No Shaker Screens Shakers::SDescri tion?> ' Deck No. Screen No. _ Scr Sz X (in) Scr SzY (In) '.Make Model _, Shaker Checks Shaker Screens Dens OF (Ib/gal Hre hre Screen ' - ' Deck No. No. Scr Sz X (In) .Scr Sz Y (In) _ ,,, , ., , Drill3trin s: ~ ' _+" ~ ` ' ~ ~~ ' -~~ -~~ ~ShakerChecks _ Bit Run Make Bit Inventory Bit Type Item Cost Dens OF (Ib/gal) f Dens OF (Ib/gal) Hrs (hre) ~s IADC Bit Dull TFA (incl Noz) (In') BHA ROP (ft/hr) Noales (!32") IADC Codes ' t`:`~ ,,~ ,'Make Model ~ ~~ ~~ BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001 .. Max. Hook Load (Ibf) Centrifu e/C clone Checks WOB (10001bf) Interval ROP (ft/hr) Total ROP (Whr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Density Overflow (Ib/gal) Overflow Rate (gpm) Bit RPM (rpm] Motor RPM (rpm) ~CUm Drill Tlme (hrs) Off Bottom Torque Torque Units SO HL (1DOOIbf) Dena OF (Ib/gal) Undernow Rate (gpm) Hours (hrsj -',Oil Under FI (%) ',Dens FD (Ib/gal) H draulic Calculations AV DP (ft/min) AV DC (ftlmin) Erc ~ ,. f° ~di~t' ~d n ~ , ~ ~' ~ ~ c . ve, m ou a~ Description Cons... Daily Cost Vendor Drill Strin Com onents -- - Mv ' ' ' `r ~ =~ ~~ i : s ~'~~~ ~+.~ 4 ~ ~ Top Blm -Bend ~ Angle Last Casin ''Ch'eCiE.~ ~"?"`''~~' '` v~~~..F:. Item Density Drift 'Conn Sz ' Conn Sz Bt '' , , , m Jts Description Len (ft) OD (In) (Ibalft) I Grade ID (Inj (in) Pn) Top Thrd (In) Thrd Cum Len (ft) ' i°) Date Type.. ~, .. v:~ ;. F ~~ -, '~ ~,A, ;~ ~ ~~ 4~~ ~; ~.~~-g:~,R=-,; Y ...~ La BOP~Check~~ R_~x~... ~. '~ ,ha. i~ Wellbores "~" "~"`~ ~ ~ ` ':~^ ~ ~ ~: ; ~ ~ ~~ ' , . : . ~ ~ , , , ~, ~ ~ ._: y .. ,~ . ,~ Teat Date Teai T Pe Wellbore Name VS Dir (°) ~ Klek Off Depth (ftKB) Original HOIe Formations Sample Top i Formation Namo MD (ftK6) 'Base Permafrost 19.0 ,r ~ «r*~~ ;~ ' .,~ tgx ~;'' , :1" r ~~ .~ ~ ~.~~ ~`, ,~s ,~ ~ ~,~;; h~ ~ , Report Printed: 2112/2007. Job Spud Date Rig Release Date Ground Elevation (k) Orlg KB Elev (ft) KB-Ground Distance (ft) ,AFE No. Total AFE Amount Total AFE+Sup 74.00 93.00 19.00 AF62035 23,556,979.00 z3,556s7s.oo $af@ < :'~ ~k~•v~-, ~~~".:.~`~~'~`tta~ ~ ,x ~-~ ~aW ti~"'A yr y~~yc ~~~N ~ ~~.~ x. ~~ aR ..rs r" ~a~s. f at ~ °~'~„Targat Depth (ftKB) Target Formation Type Date Comment Safety Highlight 2!9/2007 Tundra Damage Report Immediatly iDauycostrotal Cum Cost To Date Dail 'Summa~i' ~~~. , ~atli ~'~~" ~ ~.~ :~~ .,~.. ~ ~ .,"~`' ' , _•' '~ .~,x~~ ny, '~ ~ Weather Lease I Road Conditions Over (+) /Under (-)AFE (+1-) Var Days -,Dally Mud Cost Wellbore Condition Mud Cum To Date GOOD Operations @ 06:00 Depth Start(ftK8) Depth End (kK8) Iso tanks 8 Containment 97°/a Boilers RNG. Steam Cir Operations This Report Period ~' Depth Progress (k) Drilling Hours (hrs) Rig Down Service Loop on Top Drive /Resting 3 Lines in Loop /Restring Loop /Froze up Steam In Sub /Unthaw _~ _ e /Cement Conductor ,Cement Job Went Well /Reassemble Pumps Rig in Mud Line Hang Lights in Derrick / - ~ ~ . s Top Drive Function Test- Links Control & Brake.Welders Assiting with Rig up Modifications Daily Foreman Contact . _+ Job Contaet C¢II Phone Operations Next Report Period ----~~---- - _"~-- Continue Rlgup PlpeBams 8 Rock Wash & Centrifuge etc Ri s• Do on AW _ -. ~. , ., w?^ ~ : l ~~' ~^~ ~~*r ~- ' * ~ ~ ~ ~,- r a,~ ~ t RlgSupervisor Ti117f3 LO ."r , + e ~;h'/~^ ,~xa~ c .. $"s ~.. , a""•a 3x ... A~ ~ start Dur Ops Scheduled Depth End BOb LUptOn, Rig Manager Time (hrs) cat type Phase MaJorOp Operedon Trouble (kK6) comment MudPum''s:1 Gardner-Denvel•.PZ-9 `:. ' No. Pwr (hp) Rod Diameter (in) Mud Checks: 1 1,000.4 2.9921 ~ Density (IblgaQ pH CEC for Cuttings Pf (mLImL) Calelum (mg/L) % Water (%) Mud Lost (Hole) (bbl) , Liner Size (in) Stroke (in) VoUStk OR (bbl/s... 9.02 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) Pum Checks PV Over (cp) Gel (f Os) (Ibf/t00f... Sand (°h) MBT (Ib/bbl) Llme (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) Strokes Pres (psi) Siow Spd (spm) Ek (%) No YP Over (IbN10... Gel (10m) (Ibf/100... So11ds (%) LGS (%) .Polymer (ppm) LCM Mud Vol (Res) (bbl) ' Mud Pum s: 2 Gardner-Denver PZ-9 Type Gel (30m) (IbfN 00... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (mU30... Alkalin (mL/mL) Whole Mud Add (bbl) No. 'IPwr (hp) Rod Diameter (in) 2 1,000.4 2.9921 Silicate (%) Electric Stab Liner Size (in) :Stroke (in) VoUStk OR (bbl/s... (V) Comment 9.02 ~-.t m=, .~. - - - D "` in Shaker-Data , ~ ,,~~ ~ ~._y ~^ .~'~. ~ k,~ . r~ ~~~ r ~ s'Kr •" ,~ ,~rz ~ Pum Ghecks _.._.~ , t. _. n r: _ ~.~ .sue. ,~~~".~. P_ _ __ Description Make Modal Strokes Pres psi Slow Spd (spm) Eff (% Shaker Screens No Deck No. Screen No. Scr Sz X In) Ser Sz Y in) $hek@r8::<DeSCri tion?> Make Model Shaker Checks , Dens OF (Iblgal Hre hre Shaker Screens Screen ., ,. ,,' Deck No. No. Scr Sz X (In) 3cr sz Y (In) .- .. brill Strin s: -' - < ,, .. Bit Run Make Bit Inventory Blt Type Item Cost Shaker Checks IADC Bit Dull TFA (incl Noz) (in') BHA ROP (fUhr) Nozzles (/32") IADC Codes Dens OF (Ib/gal) Dens OF (Ibgal) , Hre (hre) BHA No. Cum Depth (k) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) Make Model I WOB (10001bf) Interval ROP (iNhr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) CentrlfU e/C clone Checks Density Overflow (Iblgal) Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) OfF Bottom Torque Torque Unib SO HL (10001bf) ' ,Dens OF (Ib/gal) Underflow Rate (gpm) H draulic Calculations Hours (hrs) i0il Under Fl (%j 'iDens FD (Ib/gal) AV DP (ft/min AV DC (fUmin) Err :MudA`ddiiive`Airtou is ~` ~~~TM ~ t ~~'~ ;-. , , , Drill Strin Com onents D i ti D il t V C C d escr p on ons... a y en or os Mtr It D i ' D ik Top Conn Sz etm Conn 3z B Bend ;Angle ~ e ~ , ~ ~ + ~ ° '~ ~' ` em ens ty , r tm ,~~ ~ ~,~ „ ~ , ~ y ~ . ~ y~ ` , " Jts Description Len ft OD In (Ibs/k) ;Grade ID in (In) On) Top Thrd (In) Thrd Cum Len ft '. t) q~ st Casin Check:w ~ ~ ~:~ ~' , . •;.;~... Date Type i ,< ~~~~ ,~r~,~~, ~ ~r7 ~~, ~ti~ '~ ~~ ~~" ~ ~~ ~~• ,,r~~' ' Wellbbres 's~; ,~ ~.r ' - BOP.„;C,heCk *~xf °~^'?~ t r ~ rg .~ „ :" Wellbore Name VS Dlr (°) Kick Off Depth (kK6) ,Last Original Hole Test Data Test Type Formations Sample Top ' Formation Name MD (kK8) Base Permafrost ~ 19.0 a Job Spud Date Rlg Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Totai AFE Amount Total AFE+Sup 76.70 95.30 18.60 AF62035 23,556,979.00 zs,sss,s7s.oo $afe ` ` .,"_.r. ~~ ., yr'a, :~.,4~.w~» °' ~,r? , ~° -r..~: ,t?cA.~'' z~ gx~~ ~a"'',n'~..5 w t`E~ `_3,..°.`.,~~`•~ie~a , ..,: ;Target Depth (ftKB) Target Formation Type Date Comment Safety Highlight 2/10/2007 Proper signal when setting loads, wear proper fall protection, be ware of work Dally Cost Total cum cost To Date equipment in your area, fire watch -don't wander. „y.,: r ~ ~; , s Da0 Summa` ;~fi ....:~x~~,._. -_'°~,~r~~~~~.,~ s,.:~f ~w,~.,. ~ :.x " Daily Mud Cost Mud Cum To Date Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/-) Var Daya FOg GOOD ,Depth Start (ftK6) Depth End (ftK8) Operations (~ 06:00 Plumb in Rock Washer Depth Progress (ft) Drilling Hours (hrs) Operations This Report Period ,,, _. ,,, ~ P/U beaver slide, set cat walk and chute to drill floor, set pipe barns and pipe bam heaterslhook up same, ~' "~ ~ r r o n move and spot rock washer, place and set up gas buster, make final cut on conductorPnstall landing ring, RKB Dail Fo e na C ntact ~ r, u~:~r. to pad = 18.60, RKB to top of landing rig = 22:30, set cuttings auger and hookup, work on top drive/install and - Job contact __cell Phone torque saver sub/XO. Rigs: Doyon, AW Operations Next Report Period RIg Supervisor ,Continue rigup rock washer, install conductorlanding ring, continue working on mud pits and shakers. Bob Lupton, Rig Manager Time Log .` ,~ s '~~~ ' ~~s k . . ~ ~~ ~ ~ ~, a ~~ ~~~ • 4.. sr ~r, - "Mud Pum s: i,Gardner-Denver PZ-9 Start i Our _ Ops Scheduled ... ... . .. „ ' Depth End No. Pwr h (P) Rod Diameter in ( ) Time (hrs) Cat Type Phase Major Op Operation Trouble (ftK6) Comment 1 1,000.4 2.9921 '~ Liner Size (in) SVOke (in) VollStk OR (bbl/s... Mud Checks: 9'02 Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) Pump CheCICS Vis (s/qt) FIIVate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg1L) Percent Oil (%) Mud Lost (Surf) (bbl) SVokes pres (psi) Slow Spd (spm) Eff (9L) No PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) time (Ib/bbl) Oil Water Ratio Mud Vol (Aet) (bbl) MUd PUm s: 2 'Gafdner-Dt:nVer PZ-9 ' No. Pwr (hp) Rod Diameter (in) YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Rea) (bbl) 2 1,000.4 2.9921 Liner Size (in) Stroke (In) VollSdr OR (bbUs... Type Gel (30m) (IbN100... T (fi) (°F) Chlorides (mg/L) HTHP Filt (mL130.,. Alkalin (mUmL) Whole Mud Add (bbl) 9 Q2 ilirate (%) Electric Stab (V) Comment Pump Checks - - Strokes Pre SI D in" Shaker Data ~ ~. a psi ow spd taPm) Erf °/. Description Make Model -." `Shakers: <Descri Ion?> Make Model Shaker Screens Deck No. Screen No. Scr Sz X (In) Scr Sz Y pn) Shaker Screens Shaker CheCkS Screen -Deck No. No. Su Sz X (In) Scr Sz Y (In) Dens OF (Ib/gal) Hre (hrs) -.._. Shaker Checks Drill Strin S: Dena OF pb/gaq Dens OF (Ibfgal) Hra (hrs) Bit Run Make Bit Inventory Bit Type Item Cost " ) ~IADC Codes IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (fUhr) Nozzles (f32 Make Model Hook Load (Ibf) Cen~ fu e/C cl9 ne Checks ~ ( Max m) TFO Reference Rot HL 70001 ' si) Flow Rate ( BHA No Cum De th ft SPP ( ( . ... , . p ) p gp Densi Overfow (Ibf al) Overflow Rate (gpm) WOB (10001bf) Interval ROP (ft/hr) Total ROP (ftfhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Dens OF (Ib/gal) Underflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) 'Cum Drill Time (hre) Off Bottom Torque Torque Units SO HL (10001bf) Hours (hrs) Oil Under FI (%) .Dens FD (IWgal) H draulic Calculations - `'"~`~ "°~ 4 ~ ; ~~ t~r-y'~ tom; ~'~~ mua dddltiV@ AI170Ur1~S ~ AV DP (1t/min) AV DC (ft/min) Err - - ~ „,:. ~ ~ Description Cons... Dally Cost Vendor Drill Strin Com onents Mo- Checic i Last Casirig Top etm Bend An le C S _ Date Type g onn z Btm Item Denalty : Drift Conn Sz ° Jts i Description Len (ft OD In (Ibslft) Grade ID in (in) tin) Top Thrd l(n) Thrd Cum Lan (ft) - ( ) . k .~, ,, ~ ,,. t'~ y ' " ~ , , a `Last BQP~Check~;~ ~',,k •';sr ~ ,;. ,. . _ -es.~ x:: .,..'~ ~ fig" -ti ~. t,~ a~: _.i Test Date T9st Tyke ` . . x s ~ Off Depth (ftK6) Welibore Name Vs Dir (°) KIck Formations Original Hole Sample Top Formation Name MD (RKB) Base Permafrost 19.0 Report Printed: 2!15/2007 r Job Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup 76 70 95 30 18 60 AF62035 23,556,979.00 23,sss,979.00 Safe a ,~ ~, ~~ ~'~ . ~, ~ - ~ ~ .. ,, .` ~' ~ ~. A*`~-. R>~ a, s~.,,,.~ ~t af,, ,>~t „ -..e ,,,,„~c.. `y Target Depth (ftK8) Target Formation ~ Type Date Comment Safety Highlight 2/11/2007 Using duck ponds under equipment. finish a job before you start another one, USe 'Daily Cost Total Cum Cost To Date proper PPE, discuss MSDS sheets handling mud products. t~ a ~a~)u y-" x x# ` ~ Doll Sumrriar t ~ ~;~. J ~ ; ~~~ Dally Mud Cost Mud Cum To Date d _, Y Weather Lease /Road Conditions Wellbare Condition Over (+) /Under (-) AFE (+/-) Var Days r Clear GOOD Depth Start(ftK6) Depth End (ftKB) Operations @ 06:00 Continue diverter nipple up Depth Progress (n) Drilling Hours (hrs) Operations This Report Period Continue Rigging UP Pipe Barn, weld 2 - 3" collars on conductor for ball valves adjust bails on to drive ri u ~ , p g , p electric lines to pipe shed, set and test landing ring - no test, pull and reseal, set landing ring again, test to Dail Foreman Contact ~ ,~ "~ ~` .f'? -~ - 4000 PSI/10 min, test OK __ Job Contact _ Cell Phone Operations Next Report Period ~ Pick up drill pipe mix mud make up BHA RI S: DO On AW RI s I g uperv sor _ Time Lo ~"' `, ~x ~,z~ ~ ~~ ~~~,~ ~,,f , . ~~~? ~ ~ "~-~- ~ ~ ~~ Bob Lupton, Rig Manager _ . :. start Dur Ops Scheduled Depth End ~MUd PUm s: 1, Gardner-Denver; PZ-9 .. Time (hrs) Cat Type phase Mayor Op Operation Trouble (ftK6) Comment No. Pwr (hp) Rod Diameter (in) 1 1,000.4 2.9921 Mud C_ hecks: +Liner Size (in) ,Stroke (In) Vol/Stk OR (bbl/s... ~ - ~~' Densi ty (Ib/gal) pH CEC for Cuttings Pf (mIJmL) Calcium (mg/Lj % Water (/) Mud Lost (Hole) (bbq " ' 9.02 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mLImL) ',Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) ',Pump Checks SVokes PV Over (cp) Gel (10s) (IbfN00f... Sand (%) MBT (Ib/bbQ Lime (Ib/bbl) OII Water Ratio Mud Vol (Aet) (bbl) i Prea (psi) Slow Spd (spm) Eft (%) ~...... NO YP Over (Ibf/10... Gel (10m) (IbfN00... Solids (%) LGS (%) ',Polymer (ppm) LCM Mud VoI (Res) (bbl) "Mud PIJm 5:2 GBrdn@M1DenVer PZ-9 . 'i No. Pwr (hp) Rod Diameter (In) Type Gel (30m) (IbT/700... T (fl) (•F) Chlorides (mg/L) 'HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ~' 2 1'(1011'4 2.9921 Liner Size (in) Stroke (in) Vol/Stk OR (bblls... Silicate (%) iEleetric Stab (V) Comment 9'02 Pump Checks _ D in` Shaker Data ._` -~,. !`:; :i~ ;~~ ~,y = .a{°:~?~ ~=~ ~ ~ +;',:: ~r#a-~+~:~ (~ k)s ~ , . _- ~ Description Make Model p ~ Pres psi SlowSpd s m Efr o/,) No Shaker Screens Shakers: <Descrf tlon?> Deck No. Screen No. Scr Sz X (In) Scr Sz.Y (In) Make Model Shaker Checks ,Shaker Screens Dens OF Ib/gal) Hrs (hrs Deck No. S No. n Scr Sz X (In) Scr Sz Y (in) ', DrIIIStrin s: ~ "~ `" Bit Run Maka Bit Inventory Bit Type Item Cost Shaker Checks f Dens OF (Ib/gal) ~ Dens OF (Ib/gal) ', Hrs (hrs) .IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Noales (/32") IADC Codes . ..Make Model 3. ,Y 8HA No. I Cum Depth (ft) SPP (psi) Plow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) '. Centrifu elC clone Checks WOB (100016f) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (100016f) Max. Over-Pull (Ibf) Density Overflow (Iblgal) Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) ~. Cum Drill Tlme (hrs) Off Bottom Torque Torque Units SO HL (10001bf) Dens OF (Ib/gal) Underflow Rate (gpm) H draulic Calculations 'Hours(hrs) OII Under Fl (%) '.Dens FD (Ib/gal) AV DP (ft/min) AV DC (ff/min) Err - n ~~( ,o;~g~•. a z s 1~ _ y., all~ud Addtitve Miounts „~,r Drill Strin Com onents Description Cons... Dally Cost Vendor - MV Top ~ Btm ~ Bend ,~„"'1„s~~~~~, ' a~~ ~''f ` ~ `"~~ i~~' r `~k ~ . " ~ Item Density Drift Conn Sz .Conn Sz Btm 'Angle s~,Cas ~ CheCk`4 _~'i ~'~.r`° , ,;~,, _^. Jts Description Len (ft) OD (In) (Ibs/R) ;Grade ID (in) (In) Pn) Top Thrd tin) Thrd Cum Len (ft) C) Date _ Type "" ~ ~~t ,g~~~ ~;~ ~ - r YVellbtres s '' x``~. ~ ~ ~ , ~ Lai st BO'P<Chec~C;~i~: ~~~. ~. < a ~.,;. . ~. , ~ . :~'--a= ~. i ~ ~:,~~ ~k Wellbore Name VS Dir (°) Kick Off Depth (ftK8) Test Date TestTYpe Original Hole 'Formations Sample Top Formation Name MD (ftK6) 'Base Permafrost 19.0 76.70 95.30 18.60 1!26/2007 16 ~ H 40 65 00 CmOt DBS Comment ', , ~ k Report Printed : 2/15/2 007 Safe ~ - ~ ,;. '_ ' ~~ -,~ ~' - [ '": a1 i ;;,~ -:~ ~ ,Y~,Target Depth (ffK6) ~ .Target Formation -. - -_ Type Date Commern Daily Cost Total Cum Cost To Date aa~~~~ Dail Summt~ `` ., ~~.: ~.+: ~ .w ~ u ~' Weather Lease !Road Conditions Wellbare Condition ' Daily Mud Cost Over (+) /Under (•) AFE (+/-) Var Days Mud Cum To Date GOOD - Operations @ 06:00 .Depth Start (ttK8) Depth End (flKB) Continue building mud, Operations This Report Period ,Depth Progress (ft) Drilling Hours (hrs) Continue with rig up. hookup rig tongs, function test iron roughneck, hang escape line from derrick. Nipple up __ starter spool on wellhead, then XO, Hydrill and one joint of diverter line. Weld on flow line and bell nipple. work -" ' :? on spud mud. wire up crown-o-matic, mud pump controls and weight indicator. Rig up intercom to pipe shed Dail Fd~einan Contact and mud pits. Job contact tali Pnone I Operatlons Next Report Period RI S:.DO on AW - Continue Mixing Mud & Dress 9 5/8 Casrng /Pickup Pipe in Derrick Rig s~pervlsor k a ~ '~ ,_,*~ `~ { ~`` ~~~~~~' Bob Lupton, Rig Manager Tirneto _ ~ Start Dur Ops Scheduled " ~ ~ - - - Depth End MUd PUm s: 1;Gardner-Denver PZ-9 Tlme (hrs) Cat Type Phase Major Op OparaUon Trouble (fUC6) Comment ; No. Pwr (hp) Rod Diameter (in) __ _ _ _ 1 1,000.4 2.9921 Mud Checks: ~ ,! ': Liner Size (in) Stroke (In) Vol/Stk OR (bbl/s... - ~ Density (Ib/gal) pH CEC for Cuttings PT (mUmL) Calcium (mg/L) ~ ~ /° 1Nater(%) Mud Lost (Hole) (bbl) ~~ 9.02 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) '~..Potasslum (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) ',PUm CheCICS Strokes '. Pres (psl) Slow Spd (spm) Eff (% ) PV Over (cp) Gel (10s) (IbFl100E.. Sand (%) MBT (Iblbbl) Lime (Ib/bbl) OII Water Ratlo Mud Vol (Act) (bbl) NO YP Over (Ibf/10... Gel (10m) (IbfN00... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) MUd PUm s: 2`Gardner-Denver PZ-9 No. Pwr (hp) Rod Diameter (In) Type Gel (30m) (Ibf/700... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) 2 1,000.4 2.9921 Liner Size (in) Stroke (in) Vol/Stk OR (bbl/s... Silicate (%) Electric Stab (V) Comment 9'02 ump Checks _ `~ ~~.`, ~-~~~ ,~ .~:,~ ,,~~ti~~ s ~,~ ~'~~ ~ strokes D in Shake~Data,..~~~~ ~~v ~ ~..a; , ~ ~ ~., _ ~ , ~ : ~ '~~ . , , ~ n , : f. « .. W, ; z~.,,~, -^- , Prea psi Slow 5pd (sPrn) Eff % Description Make Model No Shaker Screens Shakers: <Descrl tlon?> 'Make Model Deck No. Screen No. Scr Sz X (in) Scr Sz Y (In) Shaker Checks .Shaker Screens - Dens OF (Ib/gal) Hrs (hrs) Screen Deck No. No. Scr Sz X (In) Scr Sz Y (In) .. ,. <~ ,... ,; ~ , . J DriIlStrin s: '? ~ ~ ~ ~ ~ `; ~ Item cost Shaker Checks BIt Run Make Bit [nvento 61t type Dena OF (Ib/gaq Dens OF (Ib/gal) Hrs (hrs) IADC Bit Dull TFA (incl Noz) (In') BHA ROP (Whr) Nozzles (/32") IADC Codes ,,,.;,... ....Make Model BMA No. Cum Depth (ft) ~SPP (psi) Flow Rate (gpm) TFOReference Rot HL (1000L.. Max Hook Load (Ibf) CentrifugelCyclone Checks WOB (10001bf) Interval ROP (fllhr) Total ROP (fUhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) .Density Overflow (Ib/gal) Overflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) Cum Drlll Time (hrs) Off Bottom Torque Torque Unlts SO HL (10001bf) ,Dens OF (Ib/gal) Undertlow Rate (gpm) Hours (hrsj Oil Under FI (%) Il)ens Fl) (Iblgal) H draulic Calculations AV DP (ft/min) AV DC (ft/min) Err ~.~ ~~ .,,R. ~,~ ~ ~+ ~ I lNud Adjifiv Arrf t ~~ ~ ~"` k e o.un s w, u; , Descrlption Cons... DailyCost '. Vendor Drill Strin Com onents Mu Top etm Bend 'rxm"~"'e ' ~ ` ~ , ~~~4 c Item Density Drift Conn Sz Conn Sz gbn Angle .1:8St Casln Check_ at ~~ ~ ~~~.,`~ ~ Jts Descriptor Len (ft) OD (in) (Ibs/ff) Grade ID (in) (In) (IN Top Thrd (In) Thrd Cum Len (ff) -' (°) Date Type. .. ~- '~" ~- ;z.N ; ~, ~ , ~° .~ • xLdstBOP:Ch : = ~ ~ ;~ ~~ ~'-~~, ~~ ;; ~~ ; ~_ ~ ,~: F eck fs ~ , ,-~ _r€ ~' a. Welibores Test Date Wellbore Name VS Dir (°) Kick Off Depth (ftKB) ~:u~ „ ~TestType~ ry Original Hole Formations Sample Top Formation Name MD (flKB) ,Base Permafrost 19.0 Job Spud Date ',Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup ' 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 Safe ' , , ,. ~ s, ,,.: .. , r ~ }.~. ,. , , *~, , , \,; ~ ~ J y,~ +~ h a :: '~ s ~ ~ryrv. , :: ~' r Target Depth (ftKB) Target Formation ~._, war.,,~+. Type Date Commem Safety Highlight 2/13/2007 SPILL AWARENESS ON PAD & ROAD ',Dally Cost Total Cum Cost To Date Dail "-Summa :; ; :~~, :., , ~~".,, a , ~... , ~ ..~ " r.. a ~ ~~` , ~~~; ~ Weather Lease /Road Conditions Welibore Condition Over (+)1 Under (-) AFE (+/-) Var Days Daily Mud Cost Mud Cum To Date -18 __ GOOD .Operations @ 06:00 Depth Starl (ftKB) Depth End (ftKB) Preparing to spud Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) Performed rig inspection, State man approved diverter, accumulator and Hydril operation. Built 780 bbls of spud' ~~_-___ mud and calibrated top drive. Picked up 2300 ft of drillpipe and 18 jts of HWDP. ~ ~ i '" ' Operations Next Report Period Da_-i~~FOCBmar1 9;017taCt mob Contact ~ CeII Phone Spud well, P/U BHA, load MWD drill ahead - ---- ~~ . -.~ ~;. ~ ~ ~ti,r~, .,, .~e~c.~ ~. ~~a-;~:~~~ ~.N~t~, ~~ ..... _ ~i n AW ', l G O ~ Start Dur Ops Scheduled De th End g Pe Rl sa rvso r Time (hrs) Cat Type Phase Ma or Op Operation Trouble (ftKB) Comment '~ Bob Lupton, Rig Manager - Mud Pum`s: 1, Gardner-Denver; PZ-9 MUd h@CkS:' ' 'N C O. Pwr (hp) Rod Diameter (in) ' . ( ~ t ) ) ( 9 ( ) ( 9 ) Densi iblgal) pH CEC for Cuttin s Pf mUml .Calcium m /L % Water %) Mud Lost Hole bbl 1 1,000.4 2.9921 'Liner Size (in) ,Stroke (in) Vol/Stk OR (bbl/s... Vis (s/qt) Filtrate (mU30min) Filter Cake (132") Pm (mL/mL) Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) 9.02 PV Over (cp) Gel (709) (Ibf/100f... Sand (%) MBT (Ib/bbl) :Lime (Iblbbl) OII Water Ratio Mud Vol (Act) (bbl) PUm Checks Strokes YP Over (Ibf/10... Gel (10m) (Ibi/100... Solids (%) LGS (%) I Polymer (ppm) LCM Mud Vol (Res) (bbl) - Pres (psi) Slow Spd (spm) Eff (%) No Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (m1J30... Alkalin (mUmL) Whole Mud Add (bbl) MUd PUrn 5:2 Gardner-Denver PZ-9 No. Pwr (hp) Rod Diameter (in) silicate (%) Electric Stab (V) Comment 2 1,000.4 2.9921 Liner Size (in) ;Stroke (in) Vol/Stk OR (bbl/s... D in Shaker Data `xF ~~ ~ ~~,~~ ~~ k ~~ *_ .¢ ~ 9.02 Description Make Model Pump Checks _. Strokes Pres I Slow Spd (spm) Eft %) Shaker Screens ~ Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In) NO Shakers: <Dest:rl ion?> Shaker Checks 'Make _ Model Dens OF (IWgal) Hrs (hrs) _. . Shaker Screens ' Screen DrillStrin s: - +- Bit Run Make Bit Inventory Bit Type ~ Item Cost ', Deck No. No. Scr Sz X (ln) Scr Sz Y {in) IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (ft/hr) Nozzles (/32") IADC codes ~ Shaker Checks ~ ' Dena OF (IWgal) ;Dens OF (Ib/gag ' Hrs (hrs) BHA No. Cum De th ft SPP sI Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) :; I- - P O (P ) Make Model WOB (10001bf) Interval ROP (fUhr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Centrifu e/C clone Checks Bit RPM (rpm) Motor RPM (rpm) Cum Drill Tlme (hrs) Off Bottom Torque Torque Units SO HL (t0001bf) ',Density Overflow (Ib/gal) Overflow Rate (gpm) H draulic Calculations :Dens uF (Ib/gal) Underflow Rate (gpm) AV DP (ft/min)' AV DC (ft/min) Err Hours (hrs) Oil Under FI (%) ;Dens FD (iblgal) ' Drill Strin Com onents Ma ~Mu~uAdditly~ Amounts ~~'~ ~,~~:r. '~~ Top Btm Bend j Description Cons... Dally Cost Vendor Item ' Density ' Drift Conn Sz Conn Sz Btm ' .Angle ' Jts Description Len ft OD In Ibs/ft () ) ( ) Grade ID (In) (In) (In) Top Thrd (In) Thrd Cum Len (ft) ' () "~' ~ ~ ~ ~ L ~ ,~ , ' " ~~~ ~, t F : ~as~ca~in cne~k,~~~~ ~ ~ ~~. ~ ~ ;„ uuTM ~ a~~z ~r,'q ~y, s ~+ti r 't' ,tiw~ a kY~t L '~'~ a~x ~'r'~, :.'~ y ~,,, ~^ 7 ~ Date Type. ;, ~ ~~~""';~ Welibores ~ ~ ~ a ~ s~~ ~ ~ ~A ~?"~ s ~ ~ ~' ' ~ ~` ~~ ~ ~ ~~~ .. . ~ ~. ~ , r . r ; .," ~ , k~.,- w .: ~ . Wellbore Name ~ VS Dir (°) Klck Off Depth (ftKB) _ _ ; } ~ , Original Hole ast:BOP'Check:a.w~,~, ~,.,~ ~„ Test Date Test Type 'Formations ~' Sample Top ' Formation Name MD (ftKB) Base Permafrost 19.0 _~ - Report Printed:. 2/15/2007 Well Job Date: 2/13/2007, Report:. 26.0, DFS: levation (ft) Orlg K6 Elev (ft) KB-Ground Distance (ft) Conductor Pie 100.OftKB 76.70 95.30 18.60 c5g Run Date oo pn) trade wt pbs/rt) 1/26/2007 16 H-465.00 Job Spud Date :Rig Release Date Ground Elevation (k) Orig KB Elev (ft) KB-Ground Distance (k) 'AFE No. Total AFE Amount Total AFE+Sup 76.70 95.30 18.60 AF62035 23,556,979.00 zs,55s,s~s.oo Saf@ ~ Vii; ~ = ,~ , ,, ~ ral,~`- w«r. r:k... a.«ey ~r ~ ~* "''++ '~ ~" a s. ~~,~ ~" "~ r, Target Depth (kKB) Target Formation TyPe Date Comment Safety Highlight 2/14/2007 Pre- Spud Meeting No Smoking On Pad Except Designated Area /Picking up BHA Dany cost meal Cum Cost To Date /clear Directions/watch pinch points /tag lines used Deli $Umma ~ ,~,- ~ ~~ ~- ,~, ~ t a .'':'` ' ; c ~~,. ~~~ ~ ~s,?~ ..,~-~_,,, ;,Daily Mud Cost Mud Cum To Date `. , :. x.._ _ F ~ ... .. .. ~ ~ , . ,,''wry! k~" ~' 4;...4' ,- ,. Weather Lease /Road Conditions Wellbore Condition Over (+) I Under (-) AFE (+l-) Var Days -15 degrees, 15mph GOOD Depth Start (ftKB) Depth End (ftKB) wind 'Operations @ 06:00 __ Depth Progress (ft) Drilling Hours (hrs) Spudin 12.25" Hole @ 04:30 operaelons Tms Report Period ~~ Rig up to spud/P/U DP/ Dress Casing/Test rock washer, centrifuge operationlfop drive Pason malfunction Dally Foreman Contact = ~ , , Loss time 4 hrs/ PU HWDP/ Rabbit frozen jts/PU mud motor, MU Bit/ Pressure test mud lines to 2500 psi/ BD Job Contact Cell Phone _ - - --- lines/ RIH w/ stand HWDP i Rigs:. Doyon, AW Operations Next Report Period Rig Supervisor Repair Flow T/Spud well/Dr111 ahead Bob Lupton, Rig Manager .. "~ ~ z ~ °' Time Lo - -_ ,.. '~.< _ u >? t_ ,~°~" Mud Pum s: 1 Gardner-Denver PZ-9 Start Dur Ops Scheduled ~ ~ Depth End ~ No. Pwr (hp) Rod Diameter (in) ' Time (hrs) Cat Type Phase Major Op Operotlon Trouble (ftKB) Comment 1 1 ,000.4 , 2.9921 OO:OO 1.00 Drlg (Liner Size (in) ,Stroke (In) Vol/Stk OR (bblls... - Mud Checks• '.)' ' 9.02 ~ • ' Density (Ib/gal) pH CEC for Cukings Pf (mL/mL) ',Calcium (mg/L) /, Water (%) Mud Lost (Hole) (bbl) Pump Checks Strokes Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) Pres (psi) Slow Spd (spm) ER (% No PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) Llme (Iblbbl) Oil Water Ratio Mud va (Act> (bbq Mud Pum s: 2 ~Gardnel•-Denver PZ-9 ' YP Over (Ibf/10... Gel (10m) (Ibf/700... Solids (%) LGS (%) ~i, Polymer (ppm) LCM Mud Vol (Res) (bbl) ~~ No. Pwr (hp) Rod Diameter (in) 2 1 ,000.4 2.9921 - .Liner Size (In) .Stroke (in) Vol/Stk OR (bblls... Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Flit (mU30... Alkalin (mUmL) Whole Mud Add (bbl) 9.02 ilicate (%) Electric Stab (V) Comment Pump Checks SVokes _ , - ~- a w , y r+ p y~ ~ P ~ ~ ~ V 'A~ D in'" Shaker Data ~~.F C K~ ~~~ fi ~ ~ Proa ~ slows d (afro) ER P$ s r y,'Y " q..~, ,^ „• , . . ~ ~ k, . ~ iS n! .5~. ` T ~ e:~'vi. -e.~"k'k''Y £3{a: t , Description Make Motlel ~~ NO 'Shakers: <Descrl tion?> Shaker Screens _ .Make Model Deck No. Screen No. Scr Sz X (in) Scr Sz Y (in) Shaker Screens Soaker Checks Screen ~ Dens OF (IWgap _ Hro (hrs) ' Deck No. No. Scr Sz X (In) Scr Sz Y (In) Drill Strin S: ,, Shaker Checks ' Bit Run Make 81t Invento Bit T ry ype Item Cost Dens OF (Ib/gal) Dens OF (Ib/gal) Hro (hrs) ( (ADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) fNoales (/32") fIADC Codes i Make Model ~ ~ BHA No. Cum Depth (k) SPP (psi) Flow Rate{gpm) TFO Reference Rot HL (10001... Max. Hook Load(Ibf) ~ Centrifuge/CyClOne CheCi(S i Density Overfow (Ib/gal) Overflow Rate (gpm) WOB (10001bf) Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) .Dens OF (ib/gal) Underflow Rate (gpm) Bit RPM (rpm) Motor RPM (rpm) ..Cum Drill Time (hrs) Off Bolcom Torque Torque Units SO HL (10001bf) Hours (hrs) Oil Under Ft (%) ', Dens Fl) (Ib/gap :~' H draulic Calculations -~., ~ ~cl. ~~~, 3r,~~~; ,~,~ ~. - . AV DP (ft/min) AV DC (k/min) 'En Mild Additive bmounts^~ ~ ~~ ~ , „~ 4•,.%4 Description Corts... Daily Cost Vendor Drill Strin Com onents s ~ Mtr Top Btm !. Bend c xa 3' r^ ~ €~x c ;. 'i.ast ~`iBS~n(~-i1@Ck';l? „~~..,~~ .~~,;±'~ . Date T e Item Density Drift Conn sz ~ Conn Sz etm ~ Angle yp Jts Description Len (ft) O~In) (ibs/R) 'Grade ' ID (In): (in) tin) lop Thrd tin) Thrd Cum Len k) ; t) „ ~ ,: Last BOP Check ~r ,~ ~~ .~ Test Date Test Type tom. ~, _ ~~ _ ; Wellbore Name V3 Dir (°) ~ Kick Off Depth (kKB) Ofl9lnal HOIe FOrmatlOrlS Sample Top Formation Name MD (ftKB) I Base Permafrost 19.0 Report Printed: 2/15/2007, ob Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (k) KB-Ground Distance (ft) ,AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 zs,55ss7s.oo $afe M,k~:x~ .•t.~..~_ >. ~m:~5~x. ~~tt *~~~~s$:""lu v"~.~`~^~~5~:s~ .~.~1~~.w :~) r~£~'~'~4 ,,~~~e ~.,.,.,..Y „yjTarget Depth (ftKB) Target Formation Type Date .Comment Safety Highlight 2/15/2007 Discuss good houskeeping on Pad and on rig Dany cost total cum cost To Date ,,; Dail'` Summa ~ ~ ~ _~-:. ~^ ,> ~~H.:~k~ ~ ;~ ~-~~z ~, ~u., •"~ ~~ -x,;. Y, ... ~ - .. ~. :;~ .:~, ~ ~ ~ ~~~~ ~ 2,380.00 j Weather Lease /Road Conditions . Wellbore Condition Over (+) /Under (-) AFE (+/.) Var Days Daily Mud Cost Mud Cum To Date -15/ ZOm/hr wind GOOD Good Operations @ 06:00 Depth Start (ftKB) Depth End (ftKB) Drill Ahead 12.25"@ 615' Operations Thls Report Period Depth Progress (ft) Drllling Hours (hrs) Leak in Flow Tee! Rig Repair / ****Spudin 12.25" Surface @ 04:30 Hrs **** Drill Ahead to 489' trip for Mwd tools/ Back Ream Thru Mud Ring /Handle BHA / ~"~~' ,. _~~~ '~~~ Dail Foreman Cont "~ =~r _ ~ ~~ act ~' y - ~ Operations Next Report Period .bob Contact Cell Phone Drill Ahead 12.25" Surface Hole -- ,Time Lti~ , ak ~ .~4 ~ ~ ~~~x ~ ..:,3 : ~~~~~~,, '~~ " . ~ ~~.,, ~.~. ,. ,, ~~ ;~': RI o on AW . ~ Start Dur Ops Scheduled Depth End RIg Supervisor Time (hrs) Cat Type Phase Ma or Op Operation Trouble (fie) Comment g°b Lupton Rig Manager __ , 00:00 4.00 Drlg Planned Rig Move/Up BOP / Rig Repair / BOP/WH 80.0 Repair flow line "T". Mud Pum s: 1 Gardner-Denver PZ-9 , Op WH / Service Required No. Pwr (hp) Rod Diameter (in) Drillout disconnecting 1 1,000.4 2.9921 flowline, lifting "T" .Liner Size (in) SVoke (in) VollStk OR (bbl/s... and Katcher can to 9 02 seal. Pum Checks 04:00 1.00 Drlg Planned Drig Surt Drilling Drill -Motor BOP/WH 180.0 Drilled 100' - strokes Op Vert Pros (psi) Slow Spd (spm)~ Eff (%) 05:00 2.00 Drlg Planned Drlg Surf Drilling Repair Other 'Repair 180.0 Tightened up No _ Op Other factory built spline Mud Pum s: 2'Gardner-Denver PZ-9 `" 07:00 6.00 Drig Planned Drlg Surf Drilling Drill -Motor No Trbl 489.0 Drill to 489' trip out No. Pwr (np) Rod Diameter (In) 2 1,000.4 2.9921 Op Vert forMWD Liner Size (In) Stroke (in) Vol/Stk OR (bbl/s... 13:00 2.00 Drlg Planned Drlg Surt Drilling Trip Out No Trbl 489.0 Trip out to PU BHA g.p2 Op 5:00 9.00 Drlg Planned Drlg Surf Drilling Handle Tools No Trbl 489.0 P/U MWD Pump Checks so-okes Op download tools pros I SlowSpd (spm) Eff %) Mud Checks: 489.OftKB 2115/2007 00:00 NO Density (Iblgal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) $hak@rs: <D@SCrI ~ tlon?> 10.00 8.0 Make Model Vis (slat) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) !Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) 56 5.4 ~ Shaker Screens PV Over (cp) Gel (tOs) (Ibf/100f... Sand (%) MBT (Ib/bbl) (Lime (Iblbbl) OII Water Ratio Mud Vol (Act) (bbl) Screen 11.0 11.000 Deck No. No. Scr Sz X (In) Scr Sz Y (in) YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 28.000 16.000 6.0 Shaker Checks Type Gel (30m) (IbN100... T (fl) (°F) Chlorides (mg/L) -HTHP Filt (mL/30... Alkalin (mL/mL) Whole Mud Add (bbl) Dens OF (Iblgal) Dens OF (Iblgal) Hrs hrs) Water Base Silicate (%) jElectric Stab (V) Comment - Make Model ,, D iri $hakerData - , ~ ,`` ~.~>~~J~~~n ~:,,., ~ ~: '~ _~ ~~ .,,. ~ ,~._. V Description Make Model ; CentrlfU elC clone Checks _ I Density Overflow (ib/gal) Overflow Rate (gpm) Shaker Screens _Deck No.... Screen No. ___ _ ___ Scr Sz X (In) __ ._,,._: Scr Sz Y.(in) 'Dens OF (Ib/gaq UnderFlow Rate (gpm) Shaker CheCkS 'Hours (hrs) Oil Under FI (%) Dens FD (16/gal) DensUF(Iblgal).. ___ __..Hrs hro) - `A ~ ~ Mud A ddlfive Amounts ~~"~~ , ~~ ° ~, Drill Strln 8: Description Cons... Dally Cost Vendor __ Bit Run Make Bit Inventory Bit Typa Item Cost :. ,. t .„3 u IADC BIt Dull TFA (Intl Noz) (in') BHA ROP (Whr) Noales (/32") IADC Codes .~;BSt CaSln-„ Check `~: _':..., s Date Type *,, ,.~ ~ BHA No. Cum De th k SPP ) (9P ) ( ( O a.,., p O (psi Flow Rate m TFO Reference Rot HL 10001... Max. Hook Load Ib Last BOPuGheC c"~„ ~ ,k, t.. ~~~ ~`~ v `=-"~ Test Date Test Type WOB (10001bf) Interval ROP (Whr) Total ROP (ftlhr) Drllling Tlme (hrs) Drllling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Formations RPM (rpm) Motor RPM (rpm) ',Cum Drill Tlme (hrs) Off Bottom Torque Torque Units SO HL (10001bf) Sample Top Formation Name MD (ftKB) ~ r` .... ob Spud Date Rig Reloase Date Ground Elevation (k) Orig KB Elev (k) KB-Ground Distance (k) AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 $af@ ~" ~~' _ = .~ r ~ r x~ ~ ~ .Target Depth (kK8) Target Formation Type Date Comment Safety Highlight 2/16/2007 ~ Discussed wildlife in area and hazards associated. Daty costTotal Cum Cost To Date Dail -Summa'`:; ~ ~" ' ~~~ ~ ~ ' ' ~ ~ ,• <-' k° ~ " -~" 61,350.00 63,730.00 Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/_) yar Days ,Daily Mud Cost Mud Cum To Date Wind @ 10 mph I GOOD Good Operations @ 06:00 ~ Depth Start (kKB) Depth End (ttK6) Drill ahead to 1720' _489.0 1,4_27.0 Operations This Report Period Depth Progress (tt) Drilling Hours (hrs) P/U Bha ,Load Source Install Corrosion Rings /Work on Top Drive /Break Circ. / Tag @ 468 ' /Drill ahead 494 938.00 ~ 8.00 to 990' /Sheared Bolts on Compensator ai ~ a opara0o ns Next Report P eriod D ly Foreman Cont ct Drill Ah ead Su rface Hole dob Contact Cell Phone ---- Time Lo ~ ~ ~a~ .' ~ ~ ~ _...f f ~ "'~ '~~ ~~~~~~ ~r~ ~ ~. ;~ ' { h~~-~ ~ ~~ ~~- °.. RI s: Do on AW ~ Start Dur Ops Scheduled Depth End .Rig Supervisor Time (hrs) Cat Type Phase MaJorOp Opersdon Trouble (ftKB) .Comment Bob Lupton, Rig Manager 00:00 3.50 Drig Planned Flat Surf Drilling Handle Tools No Trbl 489.0 Cold weather, PU Mud Pum sc 1 Gardn D ni PZ 9 Op , er- e er, - BHA/Calibrate No. Pwr (hp) Rod Diameter (in) draworksencoder 1 1,000.0 0 03:30 0.50 Drlg Planned Flat Surf Drilling Drill -Motor Repair 489.0 Recalibrate TESCO tuner sl:e pn1 Stroke (In) Vol/Stk OR (bblls... Op Vert .Other torque indicator 6 9.02 3.300 04:00 8.00 Drig Planned Drig Surf Drilling Orill -Motor No Trbl 986.0 Drill ahead ' p ump Checks Op Vert ' SVOkes 12:00 4.00 Drlg Trbl 3rd Drig Surf Drilling Drill -Motor I Repair 986.0 Sheared plates off Prss (psp slow spa (spm)_ Err (%~ Party Vert Other compensator on 1,200.0 No 79 95 TESCO topdrive. 216.0 Yes 45 95 Removed Mud Pum s: 2, Gardner-Denver, PZ-9 components, No. Pwr (hp) Rod Diameter (in) operate w/out 2 1,000.0 0 ~ COmpenSatOfS. Liner Size (in) Stroke (In) Vol/Stk OR (bblls... 6 9.02 3.300 :00 8.00 Drig Planned Drlg Surf Drilling Drill -Motor Repair 1,427.0 Drill ahead Op Vert Other pum Checks SUOkes Mud Checks: <De ?>ftKB 2/16/2007 00:00 _ ,; Pres(psl slowspd (spm) Ek(%) Density (Iblgaq pH CEC for Cuttings Pf (mUmL) '..Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) 1,200.0 NO $0 95 10.00 8.0 91.0 0.0 216.0 Yes 45 95 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) ',Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) ShakerS:,<D@scri ti0n?> 56 5.4 1 0.5 'Make Model PV Over (cp) Gel (tOs) (Ibf/t00f... Sand (%) MBT (Ib/bbl) ~Llme (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) I. 11.0 11.000 0.6 1.7 0.5/99.5 ' Shaker Screens YP Over (Ibf/10... Gel (10m) (Ibf/100... . Solids (%) LGS (%) ',Polymer (ppm) LCM Mud Vol (Res) (bbl) g 28.000 16.000 creen 6.0 1.9 N Type Gel (30m) (Ibf/100... Deck No. o. Scr Sz X (in) Scr Sz Y (In) T (fl) (°F) Chlorides (mg/L) '..HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) Polymer 20.000 49.0 31,000.000 0.260 Silicate (%) Electric Stab (V) '.Shaker Checks Comment - Dens OF Ib/gap :Dens OF pblgal) Hrs (hrs) Mud is in good shape, PI@Ce5 Of C081 Over Shaker. Mud Checks: <De ?>ftKB 2/16/2007.20:00 Density (Ib/gal) HGS Centr(fugfa, Brandt, <Model?> pH CEC for Cuttings Pt (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) 10.00 MakeModel 8.0 Vis (s/qt) Filtrate (mU30min) Filter Cake (132") Pm (mUmL) TPotassium (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) Bfandt 56 1 Centrifuge/C clone Checks PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbq Density Overflew (Ib/gaq Overflow Rate (gpm) 11.0 11.000 0.6 1.7 YP lNer (Ibf/10... Gel (10m) (IbfN00... Solids (%) LGS (%) '...... Polymer (ppm) LCM Mud Vol (Res) (bbl) Dens OF (Ib/gal) Underflow Rata (gpm) 28.000 16.000 6.0 Type Grl (30m) (Ibf/700... T (k) (°F) Chlorides (mg/L) !HTHP Fllt (mU30... Alkalin (mUmL] Whole Mud Add (bbl) '~ Hours (hrs) 'Oil Under FI (%) '..pens FD (Ib/gal) Polymer 20.000 49.0 . Silicate (%) Electric Stab (V) Comment MUd~AddlfiV e Amo unts r ^t` :4 x ,~~t ~yr ~3 Description Cons... Daily Cost. Vendor D in ShakerlData ;:~'•,~ , ` *~ ~~_ ~r ,a~3s ~+~ of ±~ ~ ' 8.0 HALLIBU... Description p-«jel I Maka ENERGY HG Dryer Derrick 001 ! SERVICES Shaker Screens , .~'"°° Deck No. Screen No. Scr SzX (in) ScrSzY (in) Last Casin Check ~' 1 1 100.000 80.000 Date _' ryas 1 2 100.000 80.000 .. 1 3 80.000 80.000 Last BOP Check,k T t D t Shaker Checks es a e Test Type Dens OF (Ib/gal Hrs hrs) 10.00 Report Printed: 2/20/200 7 ob Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (fl) AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 z3,sss,s7s.oo Safe s ~ E ,?~`~?`~ ~,~,,~, x„ '' s,., r y ~;~,*`t~ ., ~ y •+~. ~} ,; ~,,°,~'7 Target Depth (ftKB) Target Formation Type Date Comment Safety Highlight 2/17/2007 Discussed rescent hand injuries and meathods to mitgate Daily cost Total Cum Cost To Date Dail .Summa _ ~;~,.~ , :~;~,~~ ,F,,~_,q; fi • ,~~.,;.~ ~~k.s~~ 111,437.70 ~ 175,167.70 Weather Lease I Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+!-) Var Days Daily Mud Cost Mud Cum To Date -20 light wind GOOD Tight on Trip out 95,312.70 95,312.70 Operations @ 06:00 -Depth Start (ftK6) Depth End (ftK6) Circulate bottoms up 1,427.0 2,133.0 Operations This Report Period Depth Progress (H) Drilling Hours (hrs) Drill ahead to TD of 2133', Circulate 2 bottoms up/Short trip to 1000', POOH 706.00 11.50 Operations Next Report Period a;~ea , y~'. y 3 .,~tf LID BHA, Run 9 5/8" Casing, Cement Dail Foreman Contact, l~.t o- ~c,;x. .~,~ca~ .~-~,. - ~ Job Contact Cell Phone T 49 a5 N. TFh ~~~". ^nF ~ z ~ ~ - ~ - ~ ~ ~ ~ ,~,y ~ a~ l ~ a ~ ~1 6 ~, Time Lo 3~~;~~, 1 ~. ~~ ; ~ ~ ~ .-<.:-,. ~ ~~ Start Time Dur (hrs) Ops Cat Scheduled Type phase Malor Op Operation Trouble Depth End (ftK6) fj( S: DO On AW Comment 00:00 9.00 Drig Planned Drlg Surf Drilling Drill -Motor No Trbl 1,864.0 RI Su Drill 12.25" Surface g pervlsor Bob Lupton, Rig Manager Op Vert Hole Mud Pum s: 1,Gardner-Denver PZ-9' 09:00 0.50 Drig Planned Drlg Surf Drilling Rig Repair / No Trbl 1,864.0 Rig Service No. Pwr (hp) Rod Diameter Qn) Op Service 1 1,000.0 0 09:30 5.50 Drlg Planned Drlg Surt Drilling Drill -Motor No Trbl 2,133.0 Drlg Surface Liner Size (in) stroke (in) VoUStk OR (bbl/s... Op Vert 6 9.02 3.300 15:00 2.00 Drlg Planned Drlg Surf Cond Circ &Cond No Trbl 2,133.0 Circ. Hole Pum Checks Op Trip Mud strokes 17:00 4.00 Drlg Planned Flat Surt Cond Trip Out .Tight 2,133.0 Trip out to 1000' Pres (pal) SlowSpd (spm) Efl(%) Op Trip Hole No __ 21:00 1.00 Drig Trbl Flat Surf Cond Circ &Cond '.Tight 2 133.0 Circ. Tight Hole Mud Pum s 2 Gardner-Denver PZ-9 Well Trip Mud Hole , No. IROdDIam eter(in) 'Pwr,h 22:00 1.50 Drlg Planned Flat Surf Cond Trip In No Trbl 2 133.0 O 2 000.O Trip in Op Trip , user size (in) stroke (in) Vol/Stk OR (bblls... 6 9.02 3.300 3:30 0.50 Drlg Planned Flat Surf Cond Clrc 8~ Cond No Trbl 2,133.0 Circ. ~ Cond. Hole P Ch Op Trip Mud um ecks _ P _ _ _. Strokes Mud C hecks: 1,887. OftKB, 2N 712007 09:00 Pres i slows (spm) Efl % Density (Iblgai) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) i % Water (%) i Mud Lost (Hole) (bbl) NO 10.30 9.8 _ t 0.150 80.000 89.0 Shakers: <Descri tion?> Vis (s/qt) FIIVate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent Oii (%) Mud Lost (Surf) (bbl) ..Make Model 52 4.8 2 0.200 0.5 PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) Shaker SCreenS 16.0 10.000 2.8 2.4 0.6/99.4 Screen YP Over (IbfNO... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) Deck No. No. Scr Sz X (In) Scr Sz Y (In) - 24.000 20.000 8.2 3.8 Type Gel (30m) (Ibf/700... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mL/30... Alkalln (mUmL) Whole Mud Add (bbl) .Shaker Checks Potassium 28.000 29,999.999 0.000 Dens OF (IWgal) Dens OF (Iblgai) Hra (hrs) Salt Base Silicate (%) Electric Stab (V) Comment HGS Centrifu e; Brandt, <Model?> Make Model D iri,' Shaker''Data x ~.r y~ A ~::,.~. ~ ~ „ ~ ~+ ~ ,~ ,,,, ~, ~, ~., ~,,. 3~,.~ ,~R . .mow ~ ,~, u< .:. ~.~. z ~*~ .. ,s Brandt ' ~~` Description Make Model Centrifuge/Cyclone Checks HG Dryer Derrick 001 _ Density Overflow (Ib/gal) Overflow Rate (gpm) Shaker Screens Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In) _...._ _ ...... __.. .DensUF(Ib/gal) UnderflowRate(gpm) 1 1 100.000 80.000 1 2 1 OO.000 80.000 Hours (hrs) Oil Under FI (%) Dens FD (Ib/gal) 1 3 80.000 80.000 Shaker Checks :Mud Additive Amounts~,.t ~R ti, &z~~ +~,;~ Dens OF (Iblgai Hrs (hrs) Description Cona... Daily Coat Vendor 10.00 Baracor 700 21.0 3,038.91 HALLIBU... bescriptlon Make Model - ~ ~ ENERGY HG Dryer Derrick 002 SERVICES Shaker Screens Baradefoam 9.0 988.65 HALLIBU... Deck No. Screen NO. ScrSzX In ScrSzY In HP ENERGY 1 1 100.000 100.000. SERVICES 1 2 100.000 100.000 Barascav D 12.0 765.24 HALLIBU... 1 3 80.000 80.000 ENERGY 1 4 80.000 80.000'- SERVICES aker Checks Barazan D+ 120.0 19,045.... HALLIBU... Dens uF pb/gaq _ _ Hre (hrs)_ ENERGY SERVICES Descriptton Make Model HG Dryer Derrick 003 -•--°- -°---._.. ,.-, I ---~ --- ---- ,.., --- ----°- ----- --- ~--~ muaraaalctve .„mv uncs ~. x~ r~~ - 76.70 95.30 18.60 Description Cons... Dally Cost Vendor ShakerScreens Baroid 1,6... 16,674.... HALLIBU... Deck No. Screen No. Scr Sz X (In) Scr Sz Y In) ENERGY 1 1 100.000 100.000': SERVICES 1 2 100.000 100.000',CLAYSEAL 8.0 6,345.04 HALLIBU... 1 3 80.000 80.000 ENERGY 1 4 80.000 80.000'. SERVICES Shaker Checks CON DET 2.0 867.60 HALLIBU... Dens uF (Iwgaq Hrs hrs ENERGY SERVICES Drill Strin s: BHA#1, Motor-vertical 'DEXTRID ~ 54.0 366.36 3 HALLIBU... Bit Run Make Bit Type Bit Inventory Item Cost LT , ENERGY Hughes 12 1/4in, MX-1 , 510623 Mill Tooth SERVICES IADC Bit Dull TPA (foci Noz) (In') BHA ROP (ft/hr) Nozzles (/32") IADC Codes ------- 1.07 84.3 20/14/20/20 1-1-5-W DRIL-N-S... 6.0 4,648.68 HALLIBU... 1,427.0 =2,133.0 ftKB ` '. ~~ ~ ENERGY BHA No. Cum Depth (H) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) I. SERVICES 1 1,644.00 1,500.0 520 100 35 'Potassium 776.0 .12,633.... HALLIBU... WOB (t0001bf) Interval ROP (ft/hr) Total ROP (Whr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) ; Chloride ENERGY 20,000 61.4 84.3 11.50 4.0 92 30.0 SERVICES Bit RPM (rpm) Motor RPM (rpm) ,Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (t0001bQ 'Potassium 6 0 14 358 HALLIBU 360 280 19.50 3.0 Ftibs 100 . . ... Hydroxide Hydraulic Calculations SERV CES AV DP (R/min) _ AV DC (ftlmin) Err 22.8 24.9' Unable to calculate ECD because unable to interpolate TVD WALL-NUT _ _ M 28.0 736.40 HALLIBU... ERGY Drill Strin Com onents EN My SERVICES Top Btm Bend BA DM 16 0 12 600 HALLIBU... . Item Density , Drift Conn Sz Conn Sz gtm Angle Jts Description Len (k) OD (in) (Ibs/ft) ': Grade ID (in _ (In) (In) Top Thrd'I Pn) Thrd Cum Len (it) '.. (°) 'Tech . , .... ENERGY Motor with 31.17 8 104.39'. 735.53 Service/L... SERVICES Stabilizer 1.0 HALLIBU... Drill Collar 15.30 8 147.00 5.000 704.36: ENERGY -Pony SERVICES Stabilizer 5.50 8 150.32 8.000 689.06. BA. DM 2.0 1,575.00 HALLIBU... ' MWD (Dir 45.78 8 161.44 1.920 683.56', .Tech ' ENERGY Service/L... & Logging) SERVICES Drill Collar 31.28 8 149.85 2.813 637.78 Baradefoam 1.0 109.85 HALLIBU... Drill Collar 31.22 8 149.85' 2.813 606.50' HP ENERGY Drill Collar 31.28 8 149.85'.. 2.813 575.28' SERVICES XO Sub 3.00 8 154.58! 2.560 544.00 CON DET 1.0 433.80 HALLIBU... HWDP 540.00 4 27.20'.. 2.750 541.00'.. ENERGY w~: ~ ~ ~,~ ~ ~~~;, ~ ~ ~ ~` 4". ~~3~;g, - a ,~~, LL ~ :~ s ~~~ ;r .~- a ~ z W llbo e ~ SERVICES ,. ., . r e s w, .r.~~ ,~-~, .. ~a ~~ ~. Depth (RKB) '~.. Baracor 7O0 Wellbore Name VS Dir (°) Kick Otf 2.O 289.42 HALLIBU... Original Hole ' ENERGY __ _ SERVICES 'DRIL-N-S... 2.0 1,549.56 HALLIBU... ENERGY SERVICES 'PAC-L 3.0 475.20 HALLIBU... ENERGY SERVICES Mudlab 4.0 180.00 'CLAYSEAL 4.0 3,172.52 HALLIBU... ENERGY ~~ SERVICES 'Potassium 5.0 298.45 HALLIBU... Hydroxide ENERGY SERVICES DEXTRID 8.0 498.72 HALLIBU... LT ENERGY ' SERVICES Barazan D+ 8.0 1,269.68 HALLIBU... ENERGY SERVICES -:WALL-NUT 25.0 657.50 HALLIBU. 'M ENERGY SERVICES • .'7 • .. - , , ,., t, _ Report Printed: 2/20/2007 ~1,,N 76.70 95.30 18.60 Descrlptlon Cons.. DallyCosx t .,, ..,. ..,,W Vendor Potassium 80.0 1,302.40 HALLIBU... Chloride ENERGY SERVICES `i 'Baroid 140.0 1,432.20 HALLIBU... ENERGY '' SERVICES LastCasin cCheck ~~ c~.~ _;, ~„w,.,,r~,, Date _ Type Last BOP Ctieck~K~; u~~,3 ,~ uF Fr ~"~ , ?Test Date Test T pe Formations Sample Top Fortnetion Name MD (ftK6) 'Base Permafrost 19.0 `• Contlut:fo`r Pi a 100a)ftKB Csg Run Date OD (in) Grade Wt (Ibsltt) ;' 1/26/2007 16 H-40 65.00 Surface.Casin , 2;1 15.4ftKB Csg Run Date IOD (In) Grade Wt (IbslK) 2/16/2007 i 9 5/8 L-80 40.00 ' dement. ,~s,e;~ .~ ors,, _,,; ~ Spud Date ';Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) _. ,AFE No. Total AFE Amount Totai AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 Safe ~ ` ~'` ,fit ., ~-~ ~:. u.a ~,~, ' ~~" ~ ~ ,~~t., '" ~ '~'~'^"Tar et De th ftKB Tar et Formation - =~. ~,' a :~~ g p ( ) g Type Dala CommeM Safety Highlight 2/18/2007 Discuss pinch points while running casing. Daily cost rote/ Cum Cost To Date Dail Summa ~~~ , } ~ ,r :-k~„ ,,,~ 4~~~~ ~"~ ~,~~~ °`., #"' ~ 28,811.52 203,979.22 'Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-)AFE (+/~) Var Days ..Daily Mud Cost Mud Cum To Date Clear ~ GOOD Tight on Trip out 10,010.27 105,322.97 Operations @ 06:00 Depth Start (ftkBj Depth End (ttK6) Sting in Stinger to Cmt. Csg. 2,133.0 2,133.0 Operations This Report Period Depth Progress (tt) Drilling Hours (hrs) Circ i£ Cond Hole /Hoist to Run Csg. /Tig ht from 1013' out/ Handle Tools /Service Rig /"'Safety Prejob Mtgs"'/ 0.00 Run Casing with Powertongs /Giro. & Tag Btm /Land Csg. in Hanger -' ` ~ ~ - ~ Operations Next Report Period Dai-y foreman Contact ; - •~ . - j Job Contact Cell Phon Cement casing/Nipple down dlverter/nipple up BOP stack --- --- Tune Lo~ '^~ ~~ ~`z*>.a _ ~~,~.ffi~~ `,~; _J_..~.~ ~"~,~ ..~~ ~ ~* :. ~~ ~ xRl 's: Do on AW -- Start Dur Ops Scheduled I, Depth End ". Rig Supervisor Time (hrs) Cat Type Phase MaJorOp' OperaOon Tble (ftK6) Comment Bob Lupton, Rig Manager 00:00 1.50 Drlg Planned Flat Surt Drilling Circ ~ Cond No Trbl 2,133.0 Circulate hole clean Mud Pum sc 1 GardnervDenver PZ-9 Op Mud prior to POOH, , No. Pwr (hp) Rod Diameter (In) ECD dropped from ' 1 1,000.0 0 11.2 to 10.8. Hole ',Liner size (in) 'SVoke pn) Vol/Stk OR (bblls... clean 6 ' 9.02 3.300 01:30 2.50 Drlg Planned Flat Surf Drilling Trip Out I No Trbl 2,133.0 Pulled tight from is pum Checks Op 1000'md to surtace. . - strokes Bit and motor stab Prett (psq Slow 3pd (spm) EfT (°k) were packed with No clay `Mud Puin' s: 2' Gardner-Denver, PZ-9 04:00 2.00 Drig Planned Flat Surf Drilling Handle Tools ~ No Trbl 2,133.0 PJSM/UD 2 collars No. Pwr (np) Rod Diameter (in) 2 1,000.0 0 Op remove nukes from Li Si I k i S V O k R b t001 ner ze ( n) tro e ( n) o St (b lls... O 6 9.02 3.300 6:00 5.00 Drig Planned Flat Surt Drilling Handle Tools ; No Trbl 2,133.0 Download Op MWD,L/D 8"BHA, pump Checks -_ ._ - Strokes 1:00 1.00 Drlg Planned Flat Surt Drilling Safety Meeting ' No Trbl 2,133.0 PJSM, Clan floor Pres (psi slow spd (spm) Eff Op No 12:00 0.50 Drlg Planned Flat Surf Drilling Rig Repair / ' No Trbl 2,133.0 Service topdrive Shakers:'<Descrl tlon?> Op Service IMake Model 12:30 3.00 Drlg Planned Flat Surf Drilling Handle Tools No Trbl 2,133.0 Rig up casing Op running tots 'Shaker Screens 15:30 1.00 Drl Planned Flat Surf 9 Drillin Handle Tools No Trbl g 2,133.0 Make u hen er P g screen Deek No. No. Scr Sz X (in) Ser Sz Y (In) Op assembly/Make dummy to ensure - - i proper placement 'Shaker Checks ~' " Dena OF (Ib/gal) ,Dens OF (Ib/gal) Hrs hrs) 16:30 3.50 Drlg Planned Flat Surt Drilling Run Casing No Trbl 2,133.0 Run 9 5/8 Casing OP HGS Centrifu a Brandt,'<Modei?> 20:00 1.00 Drlg Planned Flat Surf Drilling Handle Tools ' No Trbl 2,133.0 RU Cement .Make Model Op '; Head/Rig down 'Brandt cement head : 'Centrifu elC clone Checks 21:00 2.00 Drlg Planned Flat Surf Drilling Circ Casing No Trbl 2,133.0 Circulate and De"a'ty Overflow pb/gaq Overtlow Rate (gpm) Op reClprOCate CBSIng ;Dens OF (Ib/gal) Undergoes Rate (gpm) 23:00 1.00 Drlg Planned Flat Surf Drilling Cmnt Casing No Trbl 2,133.0 Land Casing Op Hanger Hours (hrs) ',OII Under FI (X) 'Dens FD (Iblgaq ... _+ _. __ Mud Checks: 2145.OftKB 2/18/2007 10:00 ..., „ __ s ',: , ~ ~ ~~ Densi Ib/ al Pf mUmL Calcium m /L b ( 9 I PH CEC for Cuttings ( I (9) %Water /°) Mud Lost(Hole)(bbi) ( '~ ~~`~"~~~~'4 ~ '~ ' ~~ 'fir-; Mud Additive Amounts '~! . " 10.30 8.0 0.150 200.000 88.0 Description Cons.. Dail Cost vendor Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mlJmL) .Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) '. MUdlab 1 .I) 45.00 57 8.2 2 0.130 2,200.000 0.1 BA. DM 2.0 1,575.00 HALLIBU... PV Over (cp) Gel (105) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Ib/bbl) OII Water Ratio Mud Vol (Aet) (bbl) '.-rgCil ENERGY 21.0 11.000 2.8 10.0 0.1/99.9 Service/L... SERVICES YP Over (Ibf/10... Gel (10m) (IbfN00... Solids (%) LGS (%) ~. Polymer (ppm) LCM Mud Vol (Res) (bbl) '.. CLAYSEAL 3.0 2 379.39 HALLIBU... 29.000 21.000 8.2 Type Gel (30m) (Ibf/100... T (fl) (°F) 6.5 Chlorides (mg/L) HTHP Filt (mU30... , ENERGY Alkalin (mL/mL) Whole Mud Add (bbq ' SERVICES Potassium 26.000 32,000.002 It Base ',Baradefoam 10.0 1,098.50 HALLIBU... ate (%) Electric stab (v) Comment HP ENERGY SERVICES D in 'Shaker Data c . :•;~ ~,~ z . ~t>, ~, ~`~ ,~ y~*' ,'~+ ,, , ,,~~ ~ . ; ,.. ~~,,t ~~~ ' PAC-L 19.0 3,009.60 HALLIBU... Description Make Model '- ENERGY HG Dryer Derrick 001 SERVICES 1 Ground Elevation (k) Orig KB Elev (ft) KB-Ground Distance (ft) Mud'Additlvl3~AmountS ~~~~ 76.70 95.30 .. , 18.60 Descrlptlon Cons... Dauy Cost Vendor Shaker Screens Baroid 1186.0 1,902.78 HALLIBU... Deck NO. ScreanNo. ScrSzX(In) SerszY(In) , ENERGY 1 1 100.000 80.000 ,SERVICES 1 2 100.000 80.000 ~~ ~' 1 r;. r 1 3 80.000 80.000 Las~Casln '.Check'.:; ,~~~. - ShakerChecks - Date __ _- ----- T_YPe_- Dens OF (Ib/gal) Hrs hrs) 10.00 Last. BOP,/Check ~ , ~?~ ~ ~.~~~' ~i. rr m', ~ S uYrv f0.~P D in $hakerData ~' ~``"~ ~-~ I '" h~ .' ' ~°~ , 7f~.t N ?~ ,~ ~ ~ ~~ ~~~ ..~ Test Date rescType ~ ,2 ~""..t. Descrlptlon Make Model HG Dryer Derrick 002 'Formations Shaker SCfeens Sample Top Formation Name MD (kKB) Deck No. Screen No. Scr Sz X (In) Scr Sz Y (in) 000 Base Permafrost 19.0 100 1 1 1 2 100.000 100.000 . 100.000 Conductor Pi e;100.OftK6 1 3 80 000 000 Csg Run Date OD (in) Grade Wt (Ibslk) 80 . . 1/26/2007 16 H-40 65.00 1 4 80.000 80.000 Surface Cat;ln 2115.4ftKB Shaker Checks Csg Run Date OD (In) Grade Wt (Ibs/k) Dens uF Ib/ al Hra hra 2/16/2007 9 5/8 L-80 40.00 ': Ce em nt •>:~ fir; ~j~ ~"~" >; ~~ ~ ~ ` ~ Description Make Model ~~ . , a t ~ x,. : -~ ±, , ; > Cmnt Des Comment HG Dryer Derrick 003 Shaker Screens Deck No. Screen No. Scr Sz X (In). Ser Sz Y (I n) 1 1 100.000 100.000', 1 2 100.000 100.000', 1 3 80.000 80.000 1 4 80.000 80.000 Shaker Checks Dens OF (Ib/gal Hrs (hrs) ill Strin s: Bit Run Make Bit Inventory Bit Type Item Cost IADC Bit Dull TFA (loci Noz) (In') BHA ROP (ff/hr) Nozzles (132") IADC Codes ... k , ,. BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (ibf) WOB (10001bf) Interval ROP (Whr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. OvervPull (Ibf) Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Off Boftom Torque Torque Uolffi SO HL (10001bf) Hydraulic Calculations - - ~_-- -~ ~ ~ _ _ ___ AV DP (klmin) AV DC (ft/min) Err i Drill Strin Com onents Mtr Top Btm Bend Item Density Drift Conn Sz Conn Sz Btm Angle Jts Description Lan (k) OD (In) (Iba/k) Grade ID (in) (in)- , (In) Top Thrd Pn) _ Thrd Cum Len (ft)'. (°) -i ,,.. .. r~.. - ~ -,. ,~._ Wellbores ~~~ ~ ° ~~ ~~~''e"' ~_ ~.~, , t. ,~.,- ; ~n ~ : x~, -~ Wellbore Name VS Dir (°) Kick Off Depth (kK6) Original Hole i b Spud Date ' Rig Release Date Ground Elevation (ft) Orlg KB Elev (ft) KB-Ground Distance (ft) 'AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 2s,esss7s.oo $af@ ; ~<.. ;;~~ i`~-Y'°'~~=~ #~,~ r ~ _~_ ~ F'S ~ .` ~~~~°'a -t;#~~3TargetDepth(ftKB) TargetFOrmation Type Date Comment Safety Highlight 2/19/2007 Bear Sighting @ 10 mi north east of Camp/ be alert use Buddy system Daily cost total cum costro Date Dail Summ '"-•~ ,~ s "~ ,. ;'k ~~ ~ .r ~ ;- ~ ~~~° ~ efi: _,; 1,620.00 205,599.22 Weather Lease /Road Condttlons Wellbore Condition Over (+) /Under (-) AFE (+/~) Var Days ~'~~ Daily Mud Cost Mud Cum To Date Clear GOOD Good ' 1,620.00 - ~ 106,942.97 Operations @ 06:00 Depth Start (ftKB) Depth End (ftKB) Circulating above float shoe 2,133.0 2,133.0 Operations This Report Period :Depth Progress (ft) Drilling Hours (hrs) Makeup Stinger on Drill Pipe & Run in to Cmt. 0.00 Operatio ns Next Report P eriod m~~~ ~~~ '~ - ~% ' POOH ,Circ cs g/Cmt 9 5/8 FDrernari"CDeatact ~ Aa ~ ' ' " Job Contaot ~ Ceil Phone Time L O ~ ~ ~ y~ ,~ F. ~;t ;~ ~ ~ .-~ , ~'.:~,,.~~ i^ ~~~;;~' , ~ ci ~,'~,~~ ~ ~^~~,~; Start Time Dur (hrs) - Ops Cat Scheduled Type -. Phase MajorOp ~ Operation Trouble Depth End (ftKB) _ ,RI 5: D~O Ott AW '' Comment 00:00 2.00 Drlg Planned Flat Surf Drilling Handle Tools ' No Trbl 2,133.0 RI Su UD extra jt casing, g pervisor Bob Lupton, Rig Manager Op Land casing Mud Pum s: 1, Gardner-Denver PZ-9 ' hanger/LDcasing No. Pwr(hp) Rod Diameter(In) running tools ' 1 1,000.0 0 02:00 1.00 Drlg Planned Flat Surt Drilling Handle Tools No Trbl 2,133.0 Make up centrilizers' caner size pn- ',stroke pn) Vol/Stk OR (bbils... Op and stab in sub 6 9.02 3.300 03:00 2.00 Drlg Planned Flat Surf Drilling Trip In No Trbl 2,133.0 Trip in hole/Steam j pump Checks Op every stand strokes 05:00 2.00 Drlg Planned Flat Surf Drilling Handle Tools ' No Trbl 2,133.0 P/U pup,Stab in Pres (psi) slowspd (spm) Eft(%) Op float collar, RU No cement head,BK Mud Purn s: 2, Gardner-Denver PZ-9 CIrCUIatIOn No. ~Pwr (hp) Rod Diameter (In) 2 1,000.0 0 07:00 1.50 Drlg Planned Flat Surf Drilling Circ Casing Tool 2,133.0 Pump 285 STKS, .Liner Size (In) .Stroke (in) VoUStk OR (bblls... Op Failure PSI to 2700,Rig DN 6 9.02 3.300 cement head,Dart ' was gone,Blow Pump Checks __ . down lines strokes Pres sl Slow Spd (spm) Eft % 08:30 2.50 Drig Planned Flat Surf Drilling Trip Out Tool 2,133.0 POOH, break off No Op Failure XO 8r Stab in sub Shakers: <Descri tion?> ` 11:00 1.00 Drlg Planned Flat Surf Drilling Handle Tools Tool 2,133.0 Clean Rig floor, P/U ',Make Modei Op Failure bit sub 12:00 2.00 Drlg Planned Flat Surt Drilling Handle Tools Tool 2,133.0 P/U Casing Jt, '.Shaker Screens Op Failure Screen attempt break cira, ' Deck No. No. set sz x pn) Scr Sz Y (In) Attempt failed, P/U casing equipment Shaker Checks 14:00 0.50 Drlg Planned Flat Surf Drilling Rig Repair / No Trbl 2,133.0 LUbrlCate top drlVe 'Dens OF (Ib/gal).', Dens OF (Ib/gal) Hrs (hrs) Op Service 14:30 2.00 Drlg Planned Flat Surf Drilling Handle Tools Tool 2,133.0 UD casing HGS Centr•fu ~e Brandt, <Model?> '' Op :Failure equipment and one ,Make Model joint of casing,ciean' Brandt floor ICentrifu e/C clone Checks 16:30 0.50 Drlg Planned Flat Surf Drilling Safety Meeting No Trbl 2,133.0 PJSM !Density Overflow pb/gal) Overflow Rate (gpm) Op Dens OF (Ib/gal) Underflow Rata (gpm) 17:00 2.00 Drlg Planned Flat Surf Drilling Handle Tools 'Tool 2,133.0 M/U Bottom hole Op 'Failure assembly #2, Hours (hrs) OII Under FI (%) ,Dens FD (Ib/gal) service break jars ' 19:00 3.00 Drlg Planned Flat Surt Drilling Trip In Tool 2,133.0 r ,~ Trip in hole 24 'Mud Additive Amounts ~~ ~ ``" { ~ Op Failure vendor stds,tagged plug Description cons... osuycost 22:00 2.00 Drlg Planned Flat Surt Drilling Milling Tool 2,031.0 Drill plug @ 2031 BA. DM 2.0 1,575.00 HALLIBU... Op Failure .Tech ENERGY Service/L... SERVICES Mudlab 1.0 45.00 ,~~ a ~ ,f_a`s~,Caslri Check~~ .~,~, '" Date _ Type .u Test Type Test Date Z/75/ZUU/ U4:3U !t).!V ao.au lo.ou r+rvcuoa cv,avv ,~r~.vu zs,ooo,aro.w ~ ~af@ '`~' z f ,*~~' ,~h+' s~e* .~`r ~; ;.rt'~ rr~"v ;;,~..~.:;~, ~ '~d/, ~,~'.~~. a~rr~ ;:~ ~x. «R/;~-:~"~t<~y~..~ tuTargetDepth(ftKB) Target Formation Type Date Comment Safety Highlight 2!20/2007 Cold Temperature discussion frostbite awareness Dally cost role/ Cum Cost To Date y-~ 73,000.68 ~^a?~;a,.~ ;~ ~:~o: 'p.R.~„~~,,sr~a~rK. ,)'". ~'...;h~~!~ d,; ,~ SUlTI a, -';.' ' `" 322,238.90 P " Dally Mud Cost ase /Road Conditions Welibore Condition Over (+) !Under (-) AFE (+/-) Var Days Weathe Le Mud Cum To Date -32 F / 8m h Wind GOOD Good 2 936 68 109 879.65. ' Operations @ 06:00 Depth Start (ftKB) Depth End (ftKB) 33 0 Install Wellhead W/FMC Tech 2,133.0 2,1 . '';. Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) POOH, Hoid Pre-job Safety Mtg./Rig up & Cement 9 5/8" casing/45 bbls of Good CMT Returns /Close in 0 00 Cement Head & Hold Back Press. 2Hrs /Nipple Down Diverter / (PRE-JOB) Safety Mtgs Held Prior to ea Task ^~ w f'~ s ,,~ ~ ~~ ~ ~ c f . Foreman Conta t . at Hand Dai Job Contact ___ Cell Phone _ Operatio ns Next R eport Pe riod : I Nipple up,Tes t stack PU BHA RI s` Do 0 n AW Time L o ~ N ~' ~. ~`» ~5 .~'. ~, ~ g> ~ '~~ ~~ ~.*? ~~.~~"= ~ Rig supervisor Start Dur Ops Scheduled Depth End ' BOb LUpton, Rig Manager Time (hrs) Cat Type phase MaJor Op Operation Trouble (ftKB) Comment MUd PUm S: 1, GardrleM1Denver, PZ-9: 00:00 6.00 Drlg Planned Flat Surf Case & Milling Tool 2,033.0 Drill plug @ No. Pwr (np) Rod Diameter (ln) Op Cmnt Failure 2031,16-35 RPM, 1 1,000.0 0 2.5-5 WOB, 2500 'Liner Size (in) SVOke (in) Vol/Stk OR (bblls... Torque average I 6 9.02 3.300 06:00 2.50~ Drlg Planned Flat Surt Case & Trip Out Tool 2,033.0 Flow check, Static, ', pum Checks Op Cmnt Failure POOH, LD BHA svokes 08:30 3.50 Drlg Planned Fiat Surf Case & Handle Tools Tool 2,033.0 Break collar offjoint' pres (psp slowspd (spm) Eft(%) Op Cmnt Failure of casing, PU pony No collar,Stab into Mtid Pum 's: 2 Gardner-Denver PZ-9 stump, swedge into No. Pwr (hp) Rod Diameter (In) casing and hookup 2 1,000.0 0 cement line 'user sl:e pn) svoke pn) VogStk OR (bbl/s... 6 9.02 3.300 00 . 2.50 Drig Planned Fiat Surf Case & Circ & Conti ,Tool 2,133.0 Circulate hole @ k P Ch ~ Op Cmnt Mud Failure s ump ec slow rate, 44SPM, svokes to 70 SPM. Pull and Pres psi Slow Spd (spm) EfF % recipricate casing to No get thick mud out Shakers: <Descrl'tion?~ 14:30 0.50 Drlg Planned Flat Surf Case i£ Safety Meeting No Trbl 2,133.0 B/D & PJSM on Make 'Model i Op Cmnt cementjob !` 15:00 1.00 Drig Planned Flat Surf Case 8~ Drill - Cmnt No Trbl 2,133.0 Head up Shaker Screens Op Cmnt cementers,pressure' screen Deck No. No. Scr Sz X (In) Ser Sz Y (In) ' test lines, test OK ' 16:00 1.75 Drlg Planned Flat Surf Case 8~ Cmnt Casing No Trbl 2,133.0 Cement 9 5!8" Shaker Checks Op Cmnt casing Dens of pwgaq ; Dens uF pagaq Hrs (hrs) 17:45 0.75 Drig Trbl 3rd Flat Surf Case 8~ Cmnt Casing ,Other 2,133.0 Lost Time & Had Party Cmnt j Low Turbulent Flow HGS Centrifu a Brantit,`~Model?> for Last 80 bbis of Make Model Displacement :Brandt /REFER to Centrifu e/C clone Checks DOWNGRADE '.Density OverFlOw (Iblgal) Overflow Rate (gpm) 18:30 3.00 Drlg Planned Flat Surf BOP / Wait on Cmnt ', No Trbl 2,133.0 W.O.C ,Dens uF (Ib/gaq UnderFlow Rate (gpm) Op WH / i Drillout Hours (hrs) Oil Under FI (%) Dens FD (Iblgal) 21:30 2.50 Drlg Planned Flat Surf BOP / BOP ' No Trbl 2,133.0 Nipple Down Op WH / Diverter / to Install Mud Additive f4rriounts:' ~ ,.~~~~ °~ •.~~ ~ ; Drillout Wellhead Descrlpnon cons... Dauycose Vendor 32 HALLIBU id 4 0 432 A Ci i 'Mud C hecks C 2,116 .OftKB, 2 /20/2007 09:0 0 r c c . . ... ENERGY Density (Ib/gal) pH CEC for Cutting s Pf (mLIm L) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) SERVICES 10 .00 9.6 Vts (s/qt ) Filtrate (mU30min) Filter Cake (/32" ) Pm (mUm L) ,Potassium (mg/L) Percent Oil (% ) Mud Lost (Surf) (bbl) 2.0 5 2 8.2 BA. DM 2.0 1,575.00 HALLIBU... PV Over (cp) Gel (10 5) (Ibf/100f... Sand (%a) MBT (Iblb bl) Lime (Ib/bbl) Oil Water Rati o Mud Vol (Act) ~bbl~ T2Ch ENERGY 1 9.0 1 1.000 Service/L... SERVICES YP Over (Ibf/10.., Gel (10 m) (Ibf/100... Solids (%) LG3 (%) ':Polymer (ppm) LCM Mud Vol (Res) (bbl) i r„___`__ _,_ „ n ~ ~ n nc u n i ~ ioi i -~ Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) "last,CaSirl ' Ch@Ck=~7!at ~ '~ f# ~ " ' 76.70 95.30 . 18.60 Date Type { .Mud Checks: 2116.OftKB 2/20/2007 23:30' : " " Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) i % Water (%) Mud Lost (Hole) (bbl) ~n Cast"BOP; Check s - . , 9.90 8.8 . , , Test Date TestT pe Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) 84 9.2 'Formations PV Over (cp) Gal (7DS) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) Sampla Top 20.0 13.000 Formation Name MD (ftK8) YP Over (Ibfl10... Gel (tOm) (Ibf1100... Solids (%) LGS (%) .Polymer (ppm) LCM Mud Vol (Res) (bbl) BBSe PeRnafrOSf '~ 19.0 34.000 22.000 5.8 ConductorPi e, 100.OftKB Type Gel (30m) (Ibf/100... T (Fl) (°F) Chlorides (mg/L) HTHP Filt (mL130... Alkalin (mUmL) Whole Mud Add (bbl) Csg Run Date OD (in Grade Wt (Ibslft) Potassium 1/26/2007 16 H-40 65.00 Salt Base _ _ _ _ _ Surface Casin 2115.4f4K6' Silicate (%) Electric Stab (V) Comment ',Csg Run Date ',OD (in) Grade Wt (Ibsltt) - L 80 40 0 0 / ~ D in Shaker Data {~~ ~~ : _ ~~-~~ ~~ ,~`, ~~~~~ '. ~ , ~ ~~;7 ~"~ ,, ~ -~~ ~ ~ ,~ ; .. _... - ., . ~ , ~ ~C ~~, ~l ~ ' ~ ~ ~ ~~~ Description Make Model _. e ~ •w~ ~ ~" " " " ~ '' " ` "~ ' " ~ Cmnt Des Comment HG Dryer Derrick 001 Surface Casing Second Attempt to Shaker Screens Cement Surace Went Deck No. Screen No. Scr Sz X (In) scr sz Y pn> Well / Refer to Down 1 1 100.000 80.000', Grade For 1st Atempt 1 2 100.000 80.000', - 1 3 80.000 80.000'. Shaker Checks Dens OF Ib/ al Hrs hrs 10.00 Description Make Model HG Dryer Derrick 002 Shaker Screens Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In) 1 1 100.000 100.000 1 2 100.000 100.000 1 3 80.000 80.000 1 4 80.000 80.000 Shaker Checks Dens OF (Ib/gal) Hrs (hrs) Description Make Model HG Dryer Derrick 003 Shaker Screens Deck No. Screen No. Scr Sz X (In Scr Sz Y (In) 1 1 100.000 100.000 1 2 100.000 100.000 1 3 80.000 80.000 1 4 80.000 80.000'.. _ Shaker Checks Dens OF Ib/gal Hrs hrs Dr•III Strin s: l ," .. ;, a. > . ~ ~ , _a,,. . .. . Bit Run Make Bit Inventory Bit Type Item Cost '~ IADC Bit Dull TFA (loci Noz) (In') BHA ROP (Whr) Nozzles (/32") IADC Codes ~ TFO Reference Rot HL (10001... BHA No. Cum Depth (ft) SPP(psl) Flow Rate (gpm) Max. Hook Load(Ibf) WOB (10001bf) Interval ROP (ft/hr) Total ROP (Whr) Drilling Time (hn) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bt) H draulic Calculations AV DP (fUmin) AV DC (fUmin) _ _.. _... _ _ _.. Err_ _ __ _. Drill Strin Com onents Mtr Top Btm 'Bend Item Density Drift Conn Sz Conn Sz Btm ' (In) Thrd i Ib D ti /ft Pn) Th n ': Angle - L ft (°) C p escr s } ,Grade ID (In) Q ) rd on Lan (ft) OD (in) ( Top um en ( ) 76.70 95.30 18.60 ., ... Welibore Name VS Dir (•) Klck Oft Depth (ftK6) Original Hole 0.00 Directional S urve s Date Description 2/20/2007 MWD surveys Surve Data MD (ftK6) Incl (•) Azm (°) ND feKB NS (ft) EW (ft) V3 (ft) DLS ('l100ft) Survey Company 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 HALLIBURTON 382.00 0.76 57.97 381.99 1.34 2.15 1.34 0.20 HALLIBURTON 445.57 0.64 73.87 445.55 1.67 2.85 1.67 0.36 HALLIBURTON 508.92 0.52 85.02 508.90 1.79 3.47 1.79 0.26 HALLIBURTON 568.22 0.48 83.94 568.20 1.84 3.99 1.84 0.07 HALLIBURTON 631.18 0.47 94.24 631.16 1.85 4.51 1.85 0.14 HALLIBURTON 699.00 0.53 107.56 698.97 1.73 5.08 1.73 0.19 HALLIBURTON 819.73 0.50 104.90 819.70 1.43 6.13 1.43 0.03 HALLIBURTON 881.50 0.53 122.72 881.47 1.20 6.63 1.20 0.26 HALLIBURTON 942.21 0.53 109.26 942.17 0.96 7.13 0.96 0.20 HALLIBURTON 1,001.69 0.45 114.44 1,001.65 0.77 7.60 0.77 0.15 HALLIBURTON 1,064.21 0.53 108.50 1,064.17 0.58 8.10 0.58 0.15 HALLIBURTON 1,192.91 0.59 117.26 1,192.86 0.09 9.25 0.09 0.08 HALLIBURTON 1,255.55 0.66 122.13 1,255.50 -0.25 9.84 -0.25 0.14 HALLIBURTON 1,319.12 0.70 129.28 1,319.07 -0.69 10.45 -0.69 0.15 HALLIBURTON 1,379.59 0.68 138.66 1,379.53 -1.20 10.98 -1.20 0.19 HALLIBURTON 1,443.09 0.66 136.99 1,443.03 -1.75 11.48 -1.75 0.04 HALLIBURTON 1,504.67 0.63 153.52 1,504.60 -2.31 11.87 -2.31 0.30 HALLIBURTON 1,629.32 0.62 151.29 1,629.25 -3.51 12.50 -3.51 0.02 HALLIBURTON 1,755.17 0.64 166.10 1,755.09 -4.79 12.99 -4.79 0.13 HALLIBURTON 1,881.43 0.57 172.92 1,881.34 -6.10 13.24 -6.10 0.08 HALLIBURTON ,005.52 0.67 179.50 2,005.42 -7.44 13.32 -7.44 0.10 HALLIBURTON '~ b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ,AFE No. Total AFE Amount Total AFE+Sup 2115/2007 04:30 ' 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 , ~ x y r ~' , ~ ~~ ~"~:~ ~ .,„~' ~ ~ a ~'(~rm „„ ~'~~" ~, ~ ~ ~a' ~a' ~: ~"~ ~, ,~,v- ~y ~~ Target Depth (ftK6) Target Formation `Safe ~ a ~~ . Type Date Comment Safety Highlightl2/22/2007 Buddy System Watch ea other with Wlndchlils as low as 60F 'Dally cost total ~ Cum Cost To Date IDaii Summa - _ . ~ .~. ~ 4782,437.92 ~ -~ y ,~ ~ tr wf ~~~ q s~ :~. ~. .' ~ s , ~.~ <•~ .,.. .:~r~.~:^ ~s~= ~.,~.s ~ _~ ; :~,, -~~-~?- - 17,209,583.99 Weather . . _ Leasa /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/-) Var Days Daily Mud Cost Mud Cum To Date -40F 3mph Wind Cased 4,718.92 GOOD 122,000.74 __ Operations @ 06:00 ,Depth Start (ftK8) Depth End (ftK8) . Picking Up DPlRacking Back STDs 2,133.0 2,133.0 Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) Continue to Clean out Lower Pipe Rams & Change Rubbers /Pressure test Hydril 250 psi Low 8 2500 psi Hlgh 0 00 (10 min ea.)/Kill line Check Valve Leaked /take apart Clean & Retest /Kill Line Hcr & Manifold Valves i;< Chokes f>+ ~ ~ ~ ~~ ~ ~''~ ail Tested 250 psi Low 8 5000 psi High/ Remove Test Plug /Install Wear Bushing/Flangeup Flownipple 8~ Ketch .Daily'Forf:man Cfintact Kan...Start Picking up DP. Job contact cell Phone Operatio ns Next R eport Pe riod Rt S: DO On AW Pick up Drill Pi pe & R ack Back / PU BHA /RIH /Press. T est Csg. Drill Out /LOT/ D rill Ahead 8 .5" Int. Hole Rig Supervisor ,Time L o'ry ~.:~ . -~ . ~ ...,.:'` ~l ~~s ..-. N.. car, ~ - _ .. M ~ ~ + .~'~"~ s~ c~.:~ ...r~. _ .,,.,.. r ~~3' z,~~:,~ ~ ~ ~...~~,~x r 3~, Bob Lupton, Rig Manager a ~ ~.~~ Start Dur Ops scheduled ', Depth End Mud Pum s 1, Gardner-Denver, PZ-9 Time (hrs) Cat Type Phase Major Op Operation ~ Trouble (ftKel Comment No. Pwr (hp) Rod Diameter (in) 00:00 1.501 Drlg Trbl 3rd Flat Surf BOP / BOP BOP/WH 2,133.0 Continue to Clean 1 1,000.0 0 Party WH / Pipe Rams of Old liner size (In) svoke (in) Vol/Stk OR (bbl/s... Drillout Mud & Change 6 9.02 3.300 Rubbers .Pum Checks 01:30 18.50 Drig Planned Flat Surf BOP / BOP No Trbl 2,133.0 PRESSURE TEST strokes Op WH / B.O.P. /P.T. Pres (psq Slow Spa (sptn) Eff (%) Drillout ' ANNULAR 250 PSI ' No i & 2500 PSI (10 Mud Pum s: 2 Gardner-Denver PZ-9: MIN. EACH) O,K. / No. Pwr (hp) Rod Diameter (in) P.T. UPPER PIPE 2 1,000.0 0 RAMS, MANUAL .Liner size (in) Stroke (In) VoUStk OR (bbl/s... KILL & CHOKE 6 9.02 3.300 VALVES, H.C. KILL ~ H.C.R. VALVES, Pump Checks s CHOKE stroke Pros (psi slowspd (spm) Etf MANIFOLD, TRW No VALVE & STABBING VALVE 'Shakers <Deacri lon7> - 250 PSI & 5000 Make Model PSI (ALL TESTS 10 MIN. EACH) Shaker Screens Screen Deck No. No. Scr Sz X pn) scr Sz Y (In) 20:00 1.00 Drlg Trbl 3rd Flat Surf BOP / BOP BOP/WH 2,133.0 Test Plug Pulled Shaker Checks Party WH / /Install Wear Ring Dena of (rb/gaq Dens uF phfgaq Hrs (hrs Drillout /Had to turn Single Upside Down to Set HGS Centrifu e''Brandt, <Mode17> Wear Bushing /Not .Make Model Right X/O sub for ', Brandt setting tool 'Centrifu e/C clone Checks 21:00 3.00 Drig Planned Flat Surf BOP / Rig Up Riser No Trbl 2,133.0 Nippleup Riser /Jet ', Danslty Overnow pb/gaq Overflow Rate (gpm) Op WH / ~ Lines 8~ Hole FIII Drillout Dens OF (Ib/gal) Undertlow Rate (gpm) Mud C hecks: 2133 .OftKB; 21 22!2007.23;3 0 = ` ' ', ;Hours (hrs) ou und er Fl (%) Dens FD pb/gal) Density (Ib/gal) pH ~CEC for Cuttings Pf (mUmL ) Calcium (mg/L) % Water (k) Mud Lost (Hole) (bbl) 9. 50 9.9 s" ~,~~ x°~ex,~sc~w ~Aud Af3ditive Am ~ ~ ..- a a~: ohs, ~~, ~. , ;, Vis (s/qt) Filtrate (mU30min) Fllter Cake (/32") Pm (mL/ml) Potassium (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) Descrl tlon Cons... Dally Coat Vendor 54 6.4 ', DRIL-N-S... 1.0 774.78 HALLIBU... PV Over (ep) Gel (106) (Ibf/100f... Sand (%) MBT (Ib/bbl) 'Lime (Ib/bbl) Oil Water Ratio mud vol (Act) (bbq ENERGY 21.0 10.000 SERVICES YP Over (IbfAO... Gal (10m) (Ibf1f00... Solids (%) LGS (%) ''Polymer (ppm) LCM Mud Vol (Res) (bbl) !AldaClde G 2.0 331.86 HALLIBU... 27.000 20.000 4.1 ENERGY Type Gel (30m) (IbN100... T (fl) (°F) Chlorides (mg/L) 'HTHP Filt (mU30... Alkalln (mUmL) Whole Mud Add (bbl) SERVICES Potassium Salt Base 'THERMA-... 2.0 124.94 HALLIBU... Iicate (%) ,Electric Stab (V) Comment ENERGY SERVICES ~~ ~_ in `Shaker Data ~~'~.r <~.~~,.~ ;~ :.o-.~~g/~su~ p"~~,~ ~. ~ ~~ ,~- .:~ ~ xk;BarazanD+ 2.0 317.42 HALLIBU... Description Make Model I ENERGY HG Dryer Derrick 001 SERVICES -, Report Printed: 2/23120.07 Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) Miitl AdditiveAmo unts _, = ~ ,,:';, t 76.70 95.30 18.60 Description Cons... Daily Cost Vendor Shaker Screens BA. DM ' 2.0 ~ 1,575.00 HALLIBU... Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In , Tech ENERGY 1 1 100.000 80.000, Service/L... SERVICES 1 2 100.000 80.000',Potassium 2.0 119.38 HALLIBU... 1 3 80.000 80.000'; Hydroxide ENERGY Shaker Checks SERVICES Dens uF (Ib/gaq Hrs (hra) PAC-L 3.0 475.20 HALLIBU... 1000 ENERGY D in 'Shake"r Data ~ ~ ~` „~~ ~~ ~~e ~~~ ~ se. ~~~k „~ r '~~~ ~ ~~~3 ;a<=; SERVICES Description Make Model HG Dryer Derrick 002 'Potassium 25.0 407.00 HALUBU... ' Chloride ENERGY Shaker Screens SERVICES Deck No. Screen No. Scr Sz X In) Scr SzY (in) 1 1 100.000 100.000' Baroid 58.0 593.34 HALLIBU... 1 2 100.000 100.000 ENERGY 1 3 80.000 80.000 ,SERVICES 1 4 80.000 , 80.000 „ ~ Shaker Checks Last Ca;9iri Check ~ ='v Dens OF (Ib/gal) Hrs (hrs) Date _ Type Description Make Model ~st<BOPCheck° `` ~ `, ~ a, ~; - HG Dryer Derrick 003 'resinate Test Type Shaker Screens Deck No. Screen No. Ser Sz X (In) Scr Sz Y (in ~~ Formations 1 1 100.000 100.000 sample Top 1 2 100.000 100.000 Formation Name MD (ftK6) N h k G 1 072 0 1 3 80.000 anus u roup 80.000 Base Permafrost , . 1,090.0 1 4 80.000 80.000 Conductor Pi e;`100.OftKB Shaker Checks Csg Run Date OD (in) Grade Wt (Ibs/ft) Dens uF pb/gaq Hrs hrs) 1 /26/2007 16 H-40 65.00 ~ Surface Casin 2 t15.4ftK6 , , rill $trln9S_ ~- ~ , `- ~,~ ~~ ~~ ~ Csg Run Date OD (in) Grade Wt (Ibs/ft) IBitRun intake Bitlnventory 'Bit Type ItemCost 2!16/2007 95/8 L80 40.00 ~~ ~ ~~ >~ ~. Cement r . e , IADC Bit Dull 'TFA (incl Noz) (in') BHA ROP (ft/hr) Nozzles (/32") IADC Codes -~-- Cmnt Des ~-~-~ °•~`~-w~-'~ ~=-- Comment ~ ~ BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference iROt HL (10001... Max. Hook Load (Ibf) WOB (10001bf) Interval ROP (fUhr) Total ROP (fUhr) i Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Bit RPM (rpm) Motor RPM (rpm) !Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (t0001bf) I, Hydraulic Calculations _ _ _ ___ AV DP (ft/min) AV DC (ft/min) Err Drill Strin Com onents _ Top Btm MM Bend ' Item Density DrNt Conn 3z I Conn Sz etm ,Angle''. Jts Description Len (ft) OD (In) (Ibs/ft) '~, Grade ID (in). (In) (In) TopThrd'~. tin) Thrd Cum Len (ft ', ' t°) e ~ ~~ `'~ `~ ~?" ~.~ ~~}5~~{ = ~ ? ` J ~ ,~°~ *° " ~ ~~ J .~ ~,~ Welibor s „~ ~f ; 4~~1. '~G *.k , y * Y W.//+Yxrw! P'y"t "~M1 ~~,M., Welibore Name VS Dir (°) Kick OH Depth (ftK8) ', _Original Hole 0.00 Directional Surve s Date Description 2/20/2007 MWD surveys ^ I 'Rt:port Printed: , .2/23/2007 b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) :AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 z3,sss,s79.oo Safe ~• k r ' ,p '~ ~` ~ ~ "`~ ~ d ~t~ ~ `§' ~ a "- :YM t~,k., ~~a.t '.rr n~ '~. « r. .T M , .. , . , .. .. ..,. x - - . .. K ., ., . ,. a ~~ e r Target Depth (ftKB) . e~.d• .fin,. b'6, 5' --~ a . Mx zz ._ -. t. Target Formation Type Date Comment ~ ! Dany cost Total Safety Highlight 2/23/2007 Wind Chill Factor /Take All Precautions/ Use Buddy System Cum Cost To Date 3 e ~ r D il" S ' ~ ~ '' ~ ' ~ ~ ~` z ~ n ~~ 240,841.58 5° `~, 4,914,078.57 a ., a ~^€ : ~ w ~ ~ „~~ ., ~ . ~.:.,; . ; t ~ . ., ~ £~ ,~ ~ ' ' ~ ~~' ~ Daily Mud Cost Weather Lease! Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/-) Var Days Mud Cum To Date -38F 20mph Wind GOOD Cased 2,080.58 124,081.32 Operattons @ 06:00 ~, Depth Start (ftKB) Depth End (ftK8) Trip in hole With Smart Tools 2,133.0 2,133.0 Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) Finish rigging up Spill Protection on Flow Nipple /Ketch Kan /Make up Bit on HWDP Pick Up DP Drift ea. Jt. 8~ 0.00 TRIP in Rack Back/PU enough pipe to TD Well /Circ. Csg. Prior to Racking back last 1500' /Press. Test CSG "''~ z.~* ~, , _~ :.; to 2500 /Rack Back DP in Derrick / Start to PU Sperry ToolslDowngradel Makeup Smart Tools /Safety Mtg. Dail :Fort man' Contact .,. :..,_, Prior to ea. Change of Task . Job contact Cell Phone Operations Next Report Periotl RI S: DO On AW ,. Makeup Smart Tools RIH & DRILL OUT /LOT /Drill Ahead 8.5" Hole Rig supervisor TimeL'o "`,,~r~'~'~r: ~ .~z4~. ~,:~. ~.,`:.~" ~t.,~t ~ , F ~ ~=~~?~~`>'~.=~~~`~~,...~ ~,: `Bob Lupton, Rig Manager ~ start Dur Ops schedmed Depth End Mud Pum s:1, Gardner-Denver PZ-9 Time (hrs) Cat Type Phase Major Op Operation Trouble (~B) Comment No. Pwr (hp) Rod Diameter (In) 00:00 1.50 Drlg Planned Flat Surf BOP / BOP No Trbl 2,133.0 RIG UP SPILL 1 1,000.0 0 Op WH / PROTECTION @ liner Size (in) Stroke (in) - rVoilstk OR (bbl/s... Drillout FLOW NIPPLE 6 ' 9.02 I 3.300 (KATCH KAN) 'Pum Checks 01:30 8.50 Drlg Planned Flat Surf Drilling Trip In ~ No Trbl 2,133.0 PICKUP 4" D.P. & strokes Op RACK IN DERRICK' Pres(psi) siowSpd (spm) Eft(%) 10:00 0.50 Drlg Planned Flat Surf Drilling Rig Repair / No Trbl 2,133.0 SERVICE RIG & _ No Op Service TOP DRIVE Mud Pum s: 2 Gardner-Denver PZ-9 10:30 5.50 Drlg Planned Flat Surf Drilling Trip In No Trbl ~. No. Pwr (hp) Rod Diameter (in) 2,133.0 PICK UP 4" D.P. & 2 1,000.0 0 Op RACK IN DERRICK ' ' Liner Size (in) Stroke pn) VoUStk OR (bblls... 16:00 0.50 Drlg Planned Flat Surf Drilling Circ 8 Cond No Trbl 2,133.0 Circ. Prior to Press. 6 9.02 3.300 Op Mud Test Casing :30 0.50 Drlg Planned Flat Surf Drilling Other No Trbi 2,133.0 Press. Test Csg. to Pump Checks Svokes Op 2500 psi pros ul Slow S d (spm) Eff ,6 17:00 2.00 Drlg Planned Flat Surf Drilling Trip Out No Trbl 2,133.0 Trip out Rack Back ' No Op DP &HWDP Shakers: <Descrl tion?> ~._. 19:00 2.00 Drl Trbl 3rd Flat Surf Drillin Handle Tools Wait on 9 9 p ry ,Make Model 2,133.0 S er Tools Had to' Party ,Other be Re-aranged in Pipe Bam when Shaker Screens time to Pick Up soroen Deck No. No. Ser Sz X (In) Scr Sz Y (In) 21:00 3.00 Drlg Planned Flat Surt Drilling Handle Tools ' Wait on 2,133.0 Handle Sperry Op Other Tools Shaker Checks Mud Checks: 2,133.OftK6, 2/23/2007 23:10 Dens OF pb/gap ,Dens OF pWgai) Hrs (hrs) Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) '.. 9.50 9.2 ' HGS Centrifu e, Brandt <Model?> ' Vis (s/qt) Filtrate (mU30min) Filter Cake (!32") Pm (mUmL) 'potassium (mg/L) Pereent Oil (%) Mud Lost (Surf) (bbl) ,Make Model 53 6.4 ' 'Brandt PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) '.Lime (Ib/bbl) _ OII Water Ratio Mud Vol (Act) (bbl) i CentrlfU e/C clone Checks 21.0 10.000 _. ~, Density Overflow (Ib/gal) Overflow Rate (gpm) YP Over (Ibf/10... Gel (70m) (Ibf/100... Sotlds (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 28.000 20.000 7.4 Dens OF (Ib/gal) Undertlow Rate (gpm) Type GeI (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) POtaSSIUm Hours (hrs) ,Oil Under Fl (%) '.Dens FD (Iblgal) Salt Base Silicate (%) Electric Stab (V) Comment ~~` `s""~~"~"-"~'"~^ ~~ ~a~,,. ~ + Maud AiJditiVe dmounts < ~,,:<:,r~ ~' ~ v . . Description Cons... Dally Cost Vendor D `in ShakerData~ ~ '~ ~ - ~ti~ _ .,~'. , _~~,~~ .w_ „~;.- . 'r~,,i=~,i~BA. DM 2.0 1,575.00 HALLIBU... Description Maka Model Tech ENERGY HG Dryer Derrick 001 'Service/L... SERVICES Shaker Screens Baracor 700 2.0 289.42 HALLIBU... Deck No. Screen No. Scr Sz X (in) Scr.Sz Y (in ENERGY 1 1 100.000 80.000', SERVICES 1 2 100.000 80.000' 1 3 80.000 80.000'CiricAcid 2.0 216.16 HALLIBU... ENERGY aker Checks SERVICES Dens OF (Iblgal) - Hrs hrs) 10.00 ", , ,~ '~" ~`~ 7 ' ~ ~sn"~?k~s~a,r.a'~ ~~'ary~ " Deserlpdon Make HG Dryer Derrick . t s Gasinc Check s:^r 4~ „4 ~ ~z .':. Model Le Date Type 002 1 Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ti •_ ~St BQR_Ch@Ck >; , . ~., ` ~ " ~ k __ _ 76.70 95.30 , ,, 18.60 Test Date Test Type Shaker Screens Deck No. Screen No. Scr Sx X In). SC[Sz Y (In) ' FOrmatlOnS 1 1 100.000 100.000 Sample Top 1 2 100.000 100.000 Formation Name MD (ftKB) 1 3 80.000 80.000. Nanushuk Group 1,072.0 1 4 80.000 80.000'Base Permafrost 1,090.0 Shaker Checks Nanushuk topset sst. 2,380.0 Dens OF (ib/ al Hrs hrs) Torok 2,834.0 .. 00. e c ~u ao Po ft D in `iShalier'Data ~. ~;~''#~ ~F{ ,-~ ~ ~~`~^`~41:,`, ..,~. ~~ ~° ~> ". ~a j '~ ;,~,x:,„~ ~ yR np a o c ag wi(Ibsirt) Description . . Make Model 1/26/2007 16 H-40 65.00 HG Dryer _ Derrick 003 Surface Casin , 2115.4ftKB Shaker Screens csg Run Date oo (In) trade we (Ibsirt) Deck No. Screen No. Scr Sz x pn) Ser Sz Y m) 2/16/2007 9 5/8 ~ L-80 40.00 1 1 100.000 100 OOO,~elnent ,; .,:~ =-~ ..: ~~ 1 2 100.000 100.000: cmnt Des comment 1 3 80.000 80.000! 1 4 80.000 80.000' Shaker Checks Dens OF (Ib/gal) Hrs (hrs)' Drill Strin s: Bit Run Make Bit Inventory Bft Type Item Cost I i IADC Bit Dull TFA (incl Noz) (In') BHA ROP (ft/hr) Nozzles Q32") IADC Codes ' ~ BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) I WOB (10001bf) Interval ROP (ft/hr) 'Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) t RPM (rpm) Motor RPM (rpm) .Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) Hydraulic Calculations __ AV DP ft/min AV DC (fUmin) _ Err _._ ... Drill Stringy Com onents 1 Mtr Top. Btm Bend Item Density Drift Conn Sz Conn Sz gtm Angle ' Jts Description Len (ft) OD (In) (Ibs/tt) Grade ID in) (In) (In) Top Thrd Pn) Thrd Cum Len (ft) t°) S ', 1',.eS Yz { .~1 Welibores s ~ ~ G k v x" }.~' 23 Tr - ,~ri~ ~~ + ~x~, r ~~~ ~ z ~ eeyy k ' ti „ a r~ ~, ry ~ x a~ ~ ~~ Wellbore Name ..ry. ' b. I ,M,$ S r "<.b , ,>ft VTM k~~Yi . °`t' ~ VS Dir (°) Kick Off Depth (ftKB) Original Hole 0.00 Directional Surve s Date Description 2/20/2007 MWD surveys b Spud Date Rig Release Dete ~ Ground Elevation (k) ~ Orlg KB Elev (k) ~ KB-Ground Distance (k) ,AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 Saf@ ,; Yt. { a ~ ~~ ~s„'~K , s HS ;~ a '~' ' r ~ ~'r,"-`., "''ate ' ;~..r~, .` ~,5 r ~~~r a%Target Depth (kKB) Target Formation Type Date Commem Daily Cost Total Cum Cost To Date Dail Surrirria ;, _ ~~-~~ .. = 'rte ~ ;~~s .,^~- ~~- ~ 271,285.47 5,185,364.04 , ..Weather Lease /Road Conditions Welibore Condition Over (+) /Under (-) AFE (+/.) Var Days .Dally Mud Cost Mud Cum To Date -22F 12mph Wind GOOD _ _ Good 7,113.47 _ 131,194.79 Operations @ 06:00 ~ Depth Start (kK8) Deplh End (kK8) DRLG Ahead 8.5" @ 2433' 2,133.0 2,250.0 Operatio ns This Report P eriod ',Depth Progress (fl) ,Drilling Hours (hrs) Makeu p Sper ry Tool s / Surtac e Test /Safety Mtg. Prio r to handling Source Tools /Make up Smart Iron /Trip in 117.00 10.50 Hole/T ag Cem ent @ 1944' /D rill out Cmt. & Shoe /Dr ill Ahead to 2155' /Stop 8rC irc Hole Cl ean /Perform L.O.T ~ ~ - / No B reak Do wn @ 16# EMD /Continue to Drill Ahea d 8.5" hole to 2250' Daily Foreman Contact Job Contact Cell Phone Operatio ns Next Report P erbd -- - - - Drill Ah ead 8. 5"Hole f/ 2250' ~ ~- ' ;M ~1 +r. ` ~ s y, .. i - rx.,. K a ,~. x RI"`s: Do on'`AW ` ~ Time Lo r ~ ~ , ;~ ~ -~„",,, r.° _ ~ -~ . ~ RIg Supervisor ~~r start Dur Ops Scheduled Depth End BOb LUptOn, Rig Manager Time (hrs) cat Type Phase Ma)orOp Operatlon Trouble (itK6) Comment Mud Pum s: t, Gardner-Denver PZ-9 ' 00:00 5.00 Drig Planned Flat Surf Drilling Handle Tools No Trbl 2,133.0 , , MAKE UP & No. Pwr (np) Rod Diameter (in) OP , SHALLOW TEST 1 1,000.0 0 LWD TOOLS ,Liner Size pn) Stroke (ln) Vol/Stk OR (bblls... 05:00 1.00 Drlg Planned Flat Surt Drilling Trip In ', No Trbl 2,133.0 RUN IN W/ LWD 6 9.02 3.300 OP TOOLS /TAG ',pum Checks CEMENT @ 1944' svokes - KB Pres(psl) SlowSpd (spm) Ek(%) 06:00 6.00 Drlg Planned F-at Surf Drilling Drill - Cmnt No Trbl 2,133.0 DRILL OUT NO OP CEMENT, FLOAT, Mud Pum' s: 2,. Gardner-Denver PZ-9' & SHOE No. Pwr (hp) Rod Diameter (in) 12:00 3.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 2,155.0 2 1,000.0 0 DRILL 8 1/2" HOLE 'Liner size pn) stroke (In) VoUStk OR bbll ' OP ( s... F/ 2133' - 2155' ' 6 9.02 3.300 15:30 1.00 Drlg Planned Drig Int 1 Drilling Circ & Cond No Trbl 2,155.0 CIRCULATE & Op Mud pum Checks CLEAN HOLE __ P PRIOR TO F.I.T. strokes Pres i SlowSpd (spm) Ek % 16:30 0.50 Drig Planned Drlg Int 1 Drilling Other ', No Trbl 2,155.0 ATTEMPT L.O.T. No OP (NO BREAK Shakers: SDescrl' tion?> ' DOWN) /PUMP 'Make Model UP TO 714 PSI @ 7 GPM / F.LT. @ Shaker Screens . 714 PSI (16 PPG screen E.M.D.)10 MIN. ' DackNo. No. Scrszx(In) ScrSzY(In) (OK) _ 'Shaker Checks 17:00 7.00 Drlg Planned Drlg Int 1 Drilling Drill -Hole ' No Trbl 2,250.0 Drill ahead 8.5" Dens OF (Ib/gal) .Dena OF (Ib/gal) Hre (hrs) Op Opening hole F/ 2155' to 2250' HGS Centrifu t3 Blaridt `<Model?> Mud C het:ks: 2'155. OftK6 2/ 24/2007 09:00 _ ~ .~ .. .. `~" . -;Make ~ Model Density ( Ib/gal) pH CEC for Cuttings Pf (mUmL ) Calcium (mg/L) Y Water (%) Mud Lost (Hole)(bbl) ~: Brandt 9. 50 9.7 'Centrifu e/C clone Checks Vis (s/qt) GUtrate (mU30min) Filter Cake (/32") Pm (mUmL) potassium (mg/L) Percent OII (%) Mud lost (Surf) (bbl) ,Density Overflow (Iblgal) Overflow Rate (gpm) 54 7.2 PV Over (cp) Gel (tOs) (Ibf/100f... Sand (%) MBT (Ib/bbl) Lime (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbl) Dens OF (Ib/gal) UnderFlow Rate (gpm) 21.0 10.000 YP Over (Ibf/10... Gel (70m) (IbfN00... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Ras) (bbl) .Hours (hrs) Oil Under FI (%) Dens FD (Iblgal) 27.000 21.000 5.2 Type Gal (30m) (IbfN 00... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (mU30... Alkalin (mL/mL) Whole Mud Add (bbl) MUd A~dditiveNdmourits ~ ~ "~ *:'~ ~ X~~ ~~ . , POtaSSIUm I Description Cons... Dail Cost Vendor Salt Base -CON DET 1.0 433.80 HALLIBU... Silicate (%) Electric Stab (V) Comment ENERGY SERVICES THERMA-... 2.0 124.94 HALLIBU... ENERGY SERVICES Baracor 700 2.0 289.42 HALLIBU... ENERGY SERVICES !BA. DM 2.0 1,575.00 HALLIBU... Tor•ti cnir=or_v ~N~~ ..a.r Rig rceiease uare e;rouna elevation (R) Orig KB Elev (R) KB-Ground Distance (R) AFE No. Total AFE Amount Tolal AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,55s,9~9.00 Safe ~ ~x- ,:.,~; - ~ ~ ~~_~ ~j -~~~ ~ ~ . ~,. _,., ,_,_ - 5ti _ iii +,>s ~ ; ~~ . H ~ r ,.. ~ '~%' ,;.,, ,r-~'<-.vr , ~ ~ Target Depth (ftKB) Target Fortnatlon Type Date Comment Safety Highlight 2/25/2007 Medical Patient Transported Via Two Pickups Lead By Loader clearing Road 8~ A Dairy costrotal Cum Cost To Date Second Loader Coming to Meet them to Escort Patient to Aircraft Staged at 290,242.29 5,475,606.33 Aklaqyaaq Airstrip/ Visibility to 1 /4 mile Dairy Mid coat Mud Cum To Date Patient Was on Twin Otter heading for Barrow @ 04:15 2/26/07 with Medic at side 7,856.29 139,051.08 MOnlfOfing VItaIS .Depth StaA (ftKB) Depth End (ftKB) Dail .$UtflmB .... ~ ~` ~ ,~ ~',",x ~,'.,~,'3.s~~-~~~ a.~a~~~ , ~ 2,250.0 ~'~ ~ ~' D 2,999.0 , ,~ .. :; .M.LL , s: epth Progress (R) Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+/.) Var Days 749 O!J Drilling Hours (hrs) 23 50 -10 Blow less than GOOD Go d . 1/4milevisiblity o ~ .Dail ,Foreman Cont act ',a,< ~~ Operations ~ 06:00 Job Contact Cell Phone DRLG Ahead 8.5" @ 3104' - --- Operations Thls Report Period RI S: DO On AW Pre-tour Safety Mtgs / ***DLRG 8.5" Int. Hole F/ 2250' to 2999' ***/ Weekly Sfty Mtg / -Rig supervisor Video on Stops & Hand Placement ' Bob Lupton, Rig Manager Service Rig & T op Drive Mud Putn s't 1;Gardner-Denver. PZ-9 Operations Next Report Period No. Pwr (hp) Rod Diameter (in) Drill Ahead 8.5" Int.Hole F/ 2999' 1 1,000.0 0 ` "` ~ "~ ` Time Lo ~ _~ : ~~ .~ ~ "~' "~.,~r °`' ~ ' ~" .: Liner Size in ',SVoke in VoUStkOR bbl/s... ~ ~~, ~, ~ d () ,~ Start Dur Ops Scheduled ~!1 ., .~~ , ~~,~ ; , ~ 4 4 . 6 9.02 3.300 Depth End Time (hrs) Cat Type .Phase Mayor Op - Operation Trouble (ftKB) Comment- ' PUm Checks 00:00 15.00 Drig Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 2,749.0 DRILL 8 1/2" HOLE ! svokes OP F/ 2250' - 2749' KB Pres (psi Slow Spd (spm) ER %) 15:00 0.50 Drlg Planned Drig Int 1 Drilling Rig Repair / ' No Trbl 2,749.0 SERVICE RIG i3< No Op Service TOP DRIVE Mud Pum's: 2 Gardner-Denver'PZ-9 - 15:30 8.50 Drlg Planned Drig Int 1 Drilling Drill -Rotary No Trbl 2 999.0 DRILL 8 1!2" HOLE NO. Pwr (hp) ,.Rod Diameter (in) OP ~ , 2 1,000.0 ~ 0 F/ 2749' - 2999' Mud C hecks: 2,310. OftKB,,2/ 25/2007 04:00 ..Liner Size (In) !SVOke (In) VoUStk OR (bblls... 6 9.02 3.300 Density (Ib/gal) pH CEC for Cuttings iPf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) 9.60 10.4 1.000 180.000 91.0 Pump Checks ~~ - is (s/qt) FIIVate (mU30min) Filter Cake (!32") Pm (mUmL) Potassium (mg/L) ' Percent Oil (%) Mud Lost (Surf) (bbl) SVokes 44 6.4 1 1.000 0 Pres psi SlowSpd (spm) ER % 1.0 146 PV Over (cp) Gel (tOs) (Ibfl100f... Sand (%) MBT (Ib/bbl) .Lime (Ib/bbl) . Oil Water Ratio Mud Vol (Act) (bbl) NO 12.0 9.000 7.5 1.1/98.9 Shakers:"<Descri` hin't> ' YP Over (Ibf/10... Gel (70m) (IbfN00... Solids (%) LGS (%) ,Polymer (ppm) LCM Mud Vol (Res) (bbl) Make Model 21.000 15.000 5.1 3.4 Type Gel (30m) (Ibf1100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) -~. Shaker $CreenS Potassium 18.000 74.0 37,000.001 0.000 screen Salt 62Se Deck No. No. Ser Sz X (In) Scr Sz Y (In) Silicate(%) EIecVlcStab(V) Comment -~~ --- Treating Mud as per program. Adding ConDet & Walnut plug for bit balling. 'Shaker Checks Starting clayseal addition today. Centrifuge active mud system as needed to Dens of pwgal Dens uF pwgaq Hrs hrs) contro drill solids. ~~ ° ~ ~~~ ~ ~_ ~ ~ Mud Checks: 2,900.OftKB, 2/25/2007 18A0 , ~~ - - ~ HGS Centrifu e, Brandt, <Model?> ~ ~ , Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) ..,.Make Model % Water (%) Mud Lost (Hole) (bbl) Brandt 9.40 9.7 0.500 140.000 91.0 Vis (slgt) FilVate (mU30min) Filter Cake (/32") Pm (mUmL) ',Potassium (mg/L) Centrifu e/C clone Checks Percent Oil (%) Mud Lost (Surf) (bbl) 45 6.4 1 0.500 Density Overflow (Iblgal) Overflow Rate (gpm) 1.0 PV Over (cp) Gel (10s) (Ibf/t00f... Sand (%) MBT (Ib/bbl) !Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) ; 13.0 9.000 7.5 Dens OF (ib/gal) UnderFlow Rate (gpm) 1.1 /98.9 YP Over (Ibf/10... Gel (10m) (IbU100... Solids (%) LGS (%) 'Polymer (ppm) LCM Mud Vol (Res) (bbl) H b y ~ ' 23.0 00 18.000 5.5 ours ( ra OII Under FI (%) Dens FD (Iblgal) .- . Type Gel (30m) (IbfN00... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ,,~ . ~ .. ~ ,~„ ~: , ,~ Potassium 20.000 93.0 31,000.000 ~ ~ ~{ ~ 0.000 ~ . d ddCt e , ounts~' ~~~ „+.r $alt BBSe Descri Pori Cons... Daily Cost Vendor Silicate (%) Electric stab (v) Comment Aldacide G 1.0 165.93 HALLIBU... - ENERGY ~. D in 'Shake~`t)ata ~~ ~uK-=s~~~..~~= n.~?x~~` ~ ~ .. ~ ' ~ _, ;~ ~ ~fi~n "' "~ SERVICES ~ Description Make '" THERMA-... 1.0 62.47 HALLIBU... Modei HG Dryer Demck 001 ENERGY Shaker Screens SERVICES Deck NO. Screen No. ScrSzX In) SerSzY(In) MUD LAB 1.0 45.00 1 1 100.000 80.000 CLAYSEAL 1.0 793.13 HALLIBU... 1 2 100.000 80.000. ENERGY 1 3 80.000 80.000. SERVICES Shaker Checks CON DET 1.0 433.80 HALLIBU... Dens OF (Ib/gal) Hrs hra) ENERGY 10.00 SERVICES -- - _ . Repol-t Pri~t~e~e 2126!2007 76 70 95 30 .._~ w- .p _.... 18 60 Desert Non Cons... Dally Cost Vendor D in Shaker D ata,,, `' .. °~~..';, , . ,. ,;.,. ..`~ '~, _...F _ `.R :_ ` a =t , 3 .,~.'~" ~' ~..A`" ~~. A,~ , y_ Barascav D 2.0 127.54 HALLIBU... Descrlptlon Make Model ENERGY HG Dryer Derrick 002 SERVICES Shaker Screens X-Cide 207 2.0 240.56 HALLIBU Dock No. Screen No. Scr Sz X (In) Scr Sz Y In) ... ENERGY 1 1 100.000 100.000 SERVICES 1 2 100.000 100.000!BA DM 1 3 80.000 . 80.000. T h 2.0 1,575.00 HALLIBU... 1 4 80.000 ec 80.000! Service/L... ENERGY SERVICES Shaker Checks Dens uF ib/ al Hra ham) Ciric Acid 3.0 324.24 HALLIBU... ENERGY Description Make Model - SERVICES HG Dryer Derrick 003 IBaradefoam 4.0 439.40 HALLIBU... Shaker Screens ' HP ENERGY Deck No. Screen No. Scr SzX (In) Scr Sz Y (in) SERVICES "' 1 1 100.000 100.000'; Potassium 4.0 238.76 HALLIBU 1 2 100.000 100.000'' Hydroxide .. ENERGY 1 3 80.000 80.000: SERVICES ' 1 4 80.000 80.0001 PAC-L 6.0 950.40 HALLIBU... Shaker Checks ENERGY Dens OF (Ib/gal) Hra (hrs) SERVICES Drill Strin s: BHA #2 Slick ° ` { Barazan D+ 6.0 952.26 HALLIBU... Bit Run Make B it Inventory Bit Type Item Cost - ENERGY SERVICES 2 Hughes 8 1/tin, HCM506Z, 7114299 PDC IADC Bit Dull TFA (incl Noz) (in') BHA ROP (ft/hr) Nozzles (/32") IADC codes WALL-NUT 14.0 368.20 HALLIBU... ~. _____ 1.18 25.5 16/16116/16116/16 M-3-2-3 M ENERGY 2 250.0 - 2 999.0 ftK6 _ • ~ SERVICES . BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibt) '', POtaSSIUm 70.0 1,139.60 HALLIBU... 2 866.00 1,615.0 495 117 129 Chloride ENERGY OB (f0001bf) :Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Tima (hrs) Drilling Torque PU HL (f0001bf) Max. Over-Pull (Ibf) SERVICES 18 31.9 25.5 23.50 1,890.0 125 10 0 Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Unfts . SO HL (10001bf) ~ `=_~ ' ~ n"" a t Ca , c Ch ~• ~ n v~} ~y. 150 34.00 980.0 Am s p s s e 4_ 110 f Date - , ,,., ~.;:,~,~ , Typa Hydraulic Calculations i AV DP (fUmin) __ _ AV DC (fUmin) Err _ . ' L ~ ` - BQP~~ k ~ ;: A t i t I ll l I , , • a eC tx+;~ CBSIng S r ng COn a rlS anu Va ue n Depth Teat Date Test Type Drill Strin Com onents Mtr Formations Top etm ,Bend Item Density Drift Conn Sz 'Conn Sz Btip Angle Sample Top Jts Descrlptlon Len (ft) OD (in) (Ibs/ft) Grade ID (in) tin) (In) Top Thrd I (ih) ~: Thrd Cum Len (ft) (°) ' -Formation Nama MD (ftK6) 72 Drill Pipe 2,245.... 4 11.85,X95 3.476 4 1/2 FH 4 1/2 FH 2,999.09 Nanushuk Group 1,072.0 10 HWDP 310.28 4 27.201 2,750 4 1/2 FH 4 1/2 FH 753.83! 'Base Permafrost 1,090.0 1 Drilling 22.45 4 2.000 4 112 FH 4 1/2 FH 551 ' Nanushuk topset sst. 443 2,380.0 ~, Jars- . 'Torok 2,834.0 '- Hydraulic ~ ~', ,,`Conductor-pi'"e ~100.OftK6'~~~ 8 HWDP 248.74 4 27 20 2 750 41/2 FH 41/2 FH 10' CsgRunDate 'oD(In) 421 Grade Wt(Ibs/ft) 1 XO Sub 2.00 6.28 . . 2.500 4 1/2 FH 4 1/2 IF . 1/26/2007 16 172 36'- H-40 65.00 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF . Surtace Casiri 2115.4ftK6 170 36: 7s n D n t D C . l g Ru ate OD p ) Grade wt pbs/t ) . . 2/16/2007 9 5/8 L-80 40.00 1 NM FLEX 30.87 63/4 2.880 41/2 IF 41/2 IF 139.28' ? sment *'t ~~ ~''" ~' ~"~ ~ ~x ~ D.C. ,, , ~ Cmnt Des , „ . Comment 1 Stabilizer 5.62 63/4 2.810 41/2 IF 41/2 IF 108.41; 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.79 & Logging) BAT 1 MWD (Dir 10.00 6.76 4.880 4 1/2 IF 4 112 IF 80.37', & Logging) TM 1 MWD (Dir 9.21 6.79 4.560 4 1/2 IF 4 1/2 IF 70.37! 8~ Logging) PM3 1 MWD (Dir 29.98 6.73 4.630 4 1/2 IF 4 1/2 IF 61.16' & Loggingp NUKE I ;: • , . '' ~ Report Printed:. 2/26/. 0 __ Job Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ',AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00! 23,556,979.00 Safe ^=` . `-~, ..~.~-s~._.. ~ ~~4x'~ °.~ ~_,', a,"-.".a -„ `?.. .._ 1- -~ ~ ~'.TargetDepth(ftKB) TargetFormatlon Type Date ~ Comment ' Safety Highlight 2/26/2007 Vis ability Phase 1, & 2 Throughout the Day Cautions taken /when Travel was Dany cost rote/ Cum Cost To Date needed Two Vehicals with Radio's, Communicating Back to Base 390,531.64 5,866,137.97 ~~,. ~~ ,Dally Mud Cost Mud Cum To Date ~,~..~s ~ ~~~ x ' :o ~~' ~~ ~` * `'?' Doll Summa ` ' ~ ~ . ~ E s; . ~. : < ; -.. ~:s . .. ., . .. .ma ~ .. ,`. ~r.~ ,.. , 7,353.64 146,404.72 ~ (•/-) Var Days _ Weather Lease /Road Condltlons Wellbore Condltlon Over (+)1 Under (-) AFE Depth Start (ftKB) Depth End (ftKB) -22 W/ Gusts to 40mph Heavy Drifting Good 2,999.0 3,560.0 Winds ' Depth Progress (ft) Drilling Hours (hrs) Operations @ 06:00 561.00 19.50 DRLG Ahead 8.5" Hole @ 3675' ~ ~ ~ h .r ~ { ~ ' ` ' " ~ Operations This Report Period ~ ~, = - Day.foreman Contact . _, ., Drill ahead 8.5" Hole F/ 2999' - 3186' /Service Ri 8~ T.Drive ,Blocks, Crown /Drill ahead to 3248' Re air g P Job Contact Cell Phone Tesco Top Drive -Torque Tube Broke Brackets Above Board /Hot Permit issued to Weld up in Derrick /Pre- - --- ~ " Job Safety MTg./ Drill Ahead to 3560' / Rigs: Doyon, AW ` ',` Operations Next Report Period Rig Supervisor Drill Ahead 8.5" Hole F/ 3560' (Possible Trip for Bit & Down Load BAT. Tools Bob Lupton, Rig Manager q, ' "'m Mud Pum' s: 1 Gardner-Denver PZ-9 - 'J .. t' . ~' f ~ ~ ~~ ~ ~ ~~ u ~ ~~ . , ~ ~ ~ Time Lo , ~~ .;~"~~ "~ ,~ ~: ~ ' " ' ' `~ ~ ' ~ ~ ~ - No. Pwr (hp) Rod Diameter (In) Start Dur Ops Scheduled Depth End Time (hro) Cat Type Phase Ma)orOp OperoOon ! Trouble (ftKB)' Commenl 1 1,000.0 0 `' 00:00 9.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 3,248.0, DRILL 8 1/2" HOLE Liner size (in) suoke pn) Vol/Stk OR (bbl/s... Op F/ 2999' - 3248' KB 6 9.02 3.300 09:30 0.50 Drlg Planned Drlg Int 1 Drilling Rig Repair / No Trbl 3,246.0 Service Rig 8~ Top ' pum Checks Op Service Drive suokes 10:00 3.50 Drlg Trbl 3rd Drig Int 1 Drilling Rig Repair / 'Rig 3,248.0 Hot Permit Issued Pres (psi) slow spd (spm) Eff (%) Party Service ;Repair To Weld In Derrick No on Torque Tube / Mud'Pum s: 2 Gardner-Denver PZ-9 Pre- JOb Safety No. Pwr (hp) Rod Diameter (in) Mtg. 2 1,000.0 0 !... Liner Size (in) '.Stroke (in) VollStk OR (bblls... 13:30 10.00 Drlg Planned Drig Int 1 Drilling Drill -Rotary No Trbl 3,560.0 Drill Ahead 8.5" 6 9.02 3.300 Op Hole Pump Checks 3:30 0.50 Drl Planned Drl Int 1 Drillin Ri Re air / No Trbl 3,560.0 Service Ri 9 9 9 9 P 9 strokes Op Service Pres psi SlowSpd (spm) Eff Mud Checks::3 116OftKB 2126/2007 00:00 , No ' Density (Iblgal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) MudLost (Hole) (bbl) Shakers: <Descrf tlon?>, 9.40 10.4 91,0 Make Model Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) .Potassium (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) 45 42 1 0.250 3.0 Shaker Screens PV Over (cp) Gel (10s) (Ibfl700L.. Sand (%) MBT (Ib/bbl) Llme (Ib/bbl) OII Water Ratio Mud Voi (Act) (bbl) Screen 12.0 8.000 6.5 3.2/96.8 Deck No. No. scr sz x (in) Scr Sz Y (In) YP Over (Ibf/10... Gel (10m) (Ibf1100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 21.000 11.000 3.3 '.Shaker Checks Type Gel (30m) (Ibf/100... T (Fl) (°F) Chlorides (mg/L) ~HTHP Flit (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ; DehsOF Iblgal) . Dens OF (Iblgal) '... Hro (hrs) Potassium 15.000 95.0 33,999.998 0.000 Salt Base HGS Centrifu a .Brandt, <Model?> Silicate (%) Electric Stab (V) Comment --,Make Model 'Brandt Mud Checks: 3 316.OftK6 21 2612007 23:45 ~' Centrifu e/C clone Checks ~ I~ Density (Iblgal) pli CEC for Cuttings Pf (mUmL) ..Calcium (mg/L) % Water (%) MudLost (Hole) (bbl) :Density Overflow (Iblgal) Overflow Rate (gpm) 9.60 9.8 91.0 :- Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent Oil (%) Mud Loat (Surf) (bbl),Dens OF (Ib/gal) UnderFlow Rate (gpm) 44 5.1 1 0.400 3.0 122.0 PV Over (cp) Gal (70s) (Ibf/100f... Sand (%) MBT (Ib/bbl) ;Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) Hours (hrs) OII Under FI (Y)';Dens FD (Ib/gal) 14.0 8.000 8.5 ' 3.2/96.8 917.0 ` YP Over (Ibf/10... Gal (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) _ ~~ ~~ ~ '"h~'~ i~A~df~lv ~T~~"•"^~~T` e; gu ~ ~"~` g ns tkt' ?~~ ,q 22.000 19.000 3.6 Descrlptlon Cons... Dally Cost Vendor Type Gel (30m) (IbfN00... T (fl) (°F) Chlorides (mg/L) ~HTHP Fllt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ', AldaClde G 1.0 165.93 HALLIBU... Potassium ~ 20.000 90.0 29,999.999 0.000 130.0 ENERGY Salt Base ' SERVICES Silicate (%) Electric Stab (v) Comment MUD LAB 1.0 45.00 Making tourly treatments as prescribed by mud program. Treating corrosion, e to control mud DRIL-N-S... centrifu nnin ib R ith d b t i 1.0 774.78 HALLIBU... g g a prescr program. u a, oxygen w e ac er ' ERGY ' wt at 9.4-9.5 ppg. (Centrifuge has been kicking off on it's own lately. Electrician EN is addressing this problem.) SERVICES ~. ICON DET " 1.0 433.80 HALLIBU... ..: ~ , ' - ~ 4 in''Shaker;Data ~: '~ ~° u ~ ~' E scrlpdon Make Model SERVICES G Dryer Derrick 001 Shaker Screens Barascav D 2.0 127.54 HALLIBU... GY Deck No. Screen No. Scr Sz X in Bcr Sz Y In) ENER SERVICES 1 1 100.000 80.000'... i I-- - Report Printed: 2127/2007 Ground Elevation (k) Orig KB Elev (k) KB-Ground Distance (R) `MUd AddltlV e AmO Un ts ,'.. ~ 76.70 95.30 18.60 Description Cons... Dally Cost Vendor Shaker Screens Ciric Acid 2.0~ 216.16 HALLIBU... Deck No. Screen No. ScrSzX in ScrSzY n) ENERGY 1 2 100.000 80.000 SERVICES 1 3 80.000 80.000 gA. DM 2.0 1, 575.00 HALLIBU... ' Shaker Checks .Tech ENERGY Dens OF (Iblgal) Hrs hrs SBrVICe/L... SERVICES 10 00 . ~Barazan D+ 3.0 476.13 HALLIBU... .~ D in `Shaker,Da ~ ,; ~~ .:.~ -~ ,: ta x. ,~~,,~r~ . ~ ~~~ `.~.~ ... a::. 7~ . ,~,~ tp; .y?~..,.~~ ~f~b ,~ ~ ,~: .r .~.~ ;~ .~;~..~~ NERGY Description Make Model SERVICES '` HG Dryer Derrick 002 Shaker Screens PAC-L 4.0 633.60 HALLIBU... ' Deck No. Screen No. Scr Sz X (In) Ser Sz Y in) ~ ENERGY 1 1 100.000 100.000 SERVICES 1 2 100.000 100.000:Potassium 5.0 298.45 HALLIBU... 1 3 80.000 80.000', Hydroxide ENERGY 1 4 80.000 80.000: SERVICES Shaker Checks Baroid 35.0 358.05 HALLIBU... ' Dens OF (IWgal) Hrs (hrs) ENERGY ' SERVICES ~-: Description Make Model '!WALL-NUT 36.0 946.80 HALLIBU... HG Dryer Derrick 003 M ENERGY . Shaker Screens ' SERVICES Deek No. Screen No. Scr Sz X (In) Ser Sz Y (In) ' 1 1 100 000 100.000 Potassium 80.0 1,302.40 HALLIBU... 1 2 . 100 000 Chloride 100 000 ENERGY . , . SERVICES 1 3 80.000 80.000 ~ 1 4 80.000 80.000 ~Y '~~'~° Last Casin ~''~ 'Check "~" ~ '~ Y`'" Via. ` Shaker Checks Dato ___ Type Dans OF (Ib/ al Hrs hrs k ~' Last130P;Che ~~ ~~"~ ~ rill Strin s: BHA#2 Slick c TesiDate ; ~;~,;,; rest Type Run Make Bit Inventory Bit Type Item Cost 2 Hughes 8 1/tin, HCM506Z, 7114299 PDC Formations IADC Bit Dull 7FA (Intl Noz) (in') BHA ROP (k/hr) Nozzles Q32") LkOC Codes Sample Top ---- 1.18 26.7 16/16/16/16/16/16 M-3-2-3 Formation Name MD (ttKB) ' 2,999 0 = 3,560 0 ftKB ~ ``' Nanushuk Group 1,072.0 . . . . BHA No. Cum Depth (k) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) ', gaSe PerrTratrOSt 1,090.0 2 1,427.00 1,943.0 570 117 129 Nanushuktopsetsst. 2,380.0 WOB (10001bf) Interval ROP (klhr) Total ROP (rUhr) Drilling Time (hrs) Drilling Torque PU HL (10001bfJ Max. Over-Pull (Ibf) TOrok 834.0 2 22 28.8 26.7 19.50 1,890.0 125 10.0 , Bit RPM (rpm) Motor RPM (rpm) Cum Dril(Time (hrs) OBBottomTorque Torque Units SO HL(t0001bf) COhdUCtOf PI a 100. OftKB .~. 155 53.50 980.0 Amps l 110 Csg Run Date 'OD (In) Grade Wt (Ibslk) H draulic Calutlations 1/26/2007 16 H-40 65.00 AV DP tt/min AV DC klmin ' Err $UlfdCe CiaSln 2'11 5.4ftKB A casing str ing co ntains a null val ue in Depth csg Ran Date oD pn) 2/16/2007 ' 9 5/8 trade wt pbslk) L 80 40 00 - . DriII Strin Com onents ~ ~,~,,, 4 ~ { ~ ~ " I ~.~ G;~t ny " , i . : L196 N ~ Mtr Cetnen ~ ~ ~ uN,s~~ ~ i~~ 19 Top Btm i Bend r Cmnt DBa Comment Item Density { Drik Conn Sz j Conn Sz Btm Angle Jts Description Len (k) OD (In (Ibslk) 'Grade ID (in) (in) (in) Top Thrd tlnl Thrd Cum Len (ft) " (~) ' 90 Drill Pipe 2,806.... 4 17.44''TS... 3.240 4 FH 4 FH 3,560.50, 10 HWDP 310.28 4 27.20 2.750 4 FH 4 FH 753.83' 1 Drilling 22.45 4 2.000 4 FH 4 FH 443.551 ' Jars - Hydraulic 8 HWDP 248.74 4 27.20'. 2.750 4 FH ' 4 FH 421.10 1 XO Sub 2.00 6.28 2.500 4 FH 4 1/2 IF 172.36 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF 170.36' D.C. 1 NM FLEX 30.87 6 3/4 2.880 4 1/2 IF 4 1/2 IF 139.28 D.C. 1 Stabilizer 5.62 6 3/4 2.810 4 1/2 IF 4 1/2 IF 108.41 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.79 & Logging) _ BAT 1 MWD (Dir 10.00 6.76 ', 4.880 4 1/2 IF ', 4 1/2 IF 80.37` ii Logging) ' TM t; . ' 76.70 95.30 18.60 Drill Strin Com onents Mtr Top Btm Bend Item Doneity , Drift Conn Sz Conn Sz gtm ', Angle Jts Description Len (tt) OD (in) (Itnlrt) :.Grade ID (In (in) (fin) Top Thrd : Pn) Thrd Cum Len (tt) (°) 1 MWD (Dir 9.21 6.79 4.560 4 1/2 IF 4 112 IF 70.37''. & Logging} PM3 1 MWD (Dir 29.98 6.73 4.630 4 1/2 IF ', 4 1/2 IF 61.16'x, i 8 Logging) NUKE 1 MWD (Dir 27.96 6.76 ' 4.630 4 1l2 IF 4 1/2 IF 31.18' & Logging) FE I 1 Bit Sub 2.22 6.51 2.750 41/2 IF 41/2 Reg 3.22~I w/Float ' ', Original Hole 0.00 Directional Surve s Date 2/20!2007 Description MWD surveys Surve Data MD (ttK6) Inc! (°) Azm ) TVD (ftK8) NS (tt) EW (tt) VS (tt) DI.S (°HOOtt Survey Company 3,117.02 3,305.43 3,491.09 1.05 1.70 1.83 209.71 213.14 224.19 3,116.85 3,305.21 3,490.78 -18.44 -22.28 -26.71 9.38 7.00 3.43 -18.44 -22.28 -26.71 0.07 0.35 0.20 HALLIBURTON HALLIBURTON HALLIBURTON Job Spud Date ' Rfg Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 ~ .70 76 95.30 18.60 ' AF62035 23,556,979.00 23,556,979.00 Safe ~ xr:S.. ; -.4, ^,,. ~, ~:fi,S ~t .,. ~ , :~ X r~r ~ ~~+,. ~ :.".^e . ~x. r.~ ,~ t, :. " a.r ~, ,).^w :.;.. ~-..~~Target Depth (kKB) Target Formation Type Date Comment '' Safety Highlight 2/27/2007 Use proper PPE when mixing all chemicals, be aware of other people trailing iDauy cost total Cum Cost To Date through mixing area 294,608.75 6,160,746.72 ~- - - -a• :: • ~- _ ~ ;Dally Mud Cost Mud Cum To Date .. .° .~. _*~$ :~'^ ~ a~ :' - ; - . . ; .. 10,182.75 156,587.47 Weather Lease /Road Conditions Welibore Condition Over (+) /Under (-) AFE (+/-) Var Days -20 W! Gusts to 15 Moderate Drifting Good 3.$ Depth Start (ftKB) Depth End (ftK8) i 3,560.0 4,308.0 Operations ~ 06:00 DRILL 8 1/2" HOLE /DEPTH 4555' KB Depth Progress (ft) Drilling Hours (hrs) Operations This Report Period 748.00 ~ 23.00 Drill Ahead 8.5" Hole F/ 3560'- 4308'. Service Rig and Top Drive, Held Daily Tour Safety Meetings. No p ` a€i Foreman Contact ~ ` accidents No spills. Kept ECD's Below 10.36 y Jib Contact Cell Phone ~~` Operations Next Report Period -- -- DRILL AHEAD F/ 4308 /SHORT TRIP ` ~.,~,..~'Rigsupervisor ,T.im@L'0 ~Fxdc'..,:. {.;,;,~•,-evt~ .,.:~ ~~j...~zr.~.::'~ ,~l,.s.-. stare our ops scheduled Doptn End Bob Lupton, Rig Manager rime (hrs) cat Type Pnase nna)oiop - operadon I Trouble (ftK6) comment Mud Purti s: 1 Gardner-Denver PZ-9 ,: , 00:00 5.00 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 3,685.0 DRILL 8 1/2" HOLE No. Pwr (hp) Rod Diameter (in) OP ' F/ 3560' - 3685' KB ' 1 1,000.0 0 05:00 0.50 Drlg Planned Drlg Int 1 Drilling Rig Repair / ', No Trbl 3,685.0 SERVICE RIG 8~ ',liner size pn) ',stroke pn) Vol/Stk OR (bbl/s... Op Service I TOP DRIVE 5 1/2 9.02 0.066 ^. 05:30 12.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary ! No Trbl 4,183.0 DRILL 8 1/2" HOLE pum Checks OP ' F/ 3685' - 4183' strokes 18:00 0.50 Dlig Planned Drig Int 1 Drilling Rig Repair/ No Trbl 4,183.0 SERVICE RIG & ' Prea(psp slowspd (spm) Eff(% Op Service ' TOP DRIVE 230.0 Yes 50 95 2,400.0 No 110 95 18:30 5.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 4,308.0 DRILL 8 1/2" HOLE ' . OP F/ 4183' - 4308' Mud Pum s: 2 Gardner-Denver PZ-9 ,•,No. Pwr (hp) Rod Diameter (in) Mud Checks: 3 669 OftK6 2/27/200704.30 ` ~ , . 2 1,000.0 0 Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calclum (mg/L) % Water (% ) Mud Lost (HOIe)(bbl) Lin r Si I k I SV V 11Stk OR bb e ze ( n) e ( n) o o ( Us... 9 70 10 0 0 180 90 0 . . . . 51/2 9 02 0 066 is (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent Oil (%) . . Mud Lost (Surf) (bbl) 42 5.6 1 0.510 28,999.999 2.5 15.0 Pum Checks PV Over (cp) Gel (106) (Ibf/100f... Sand (%) MBT (Iblbbl) Llme (ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) - Strokes ~ 14.0 7.000 8.5 2.7197.3 ' Pres (psq Slow spd (sPml Eff (%) '' 230 0 Y YP Over (Ibf/70... Gel (10m) (Ibf1700... Solids (%) LGS (%) Polymer (ppm) LCM . eS $O 95 Mud Vol (Res) (bbl) ': 19.000 19.000 4.6 1.5 2,400.0 No 110 95 . Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mL130... Alkatln (mUmL) Whole Mud Add (bbl) .Shakersi <Descri Ion?> Potassium 21.000 90.0 37,000.001 0.000 Make Model Salt Base Silicate (%) Electric Stab (V) comment Shaker Screens Added 2 5-gal. pails Aldacide-G and 1 6-Ibs. pail of X-CIDE for bacteria control screen Added 4 55-gal. drums CLAYSEAL for shale stabilization. Added 5 sacks 'Deck No. No. scr szx In) scr szY pn) BARAZAN for viscosity. Added 1 55-gal. drum DRIL-N-SLIDE for lubricity. Added 2 sacks BARASCAV and 2 5-gal. buckets BARACOR 700 for corrosion ::Shaker Checks inhibition. Added 10 sacks PAC-L for filtration control. Added 55 sacks KCL for Dens of pwgaq Dens uF pWgap Hrs (nre) chloride content and K ion. Added 6 sacks (18 total) WAL-NUT Medium in 3 lost circulation/hole cleaning sweeps. HGS Centrifu a Der'r(t:k <Model?> Mud Checks: 4,121.OftKB 2/ Make Model 27/200718:00. Derrick ' Density (Ib/gal) pH CEC for Cuttings Pf (mL/mL) Calclum (mg/L) % Water (%) Mud Lost (Hole) (bbl)' CentrlfU e/C clone Checks 9.70 9.7 0.150 $8.0 Vis (s/qt) Filtrate (mU30min) Filter Cake Q32") Pm (mUmL) Potassium (mg/L) Percent Oil (%) Density Overflow (Iblgaq Overflow Rate (gpm) Mud Lost (Surf) (bbl) 42 6.4 1 0.410 2.0 PV Over (cp) Gel (106) (IbfN00L.. Sand (%) MBT (Ib/bbq Lime (Ib/bbl) 0(i Water Ratio - -Dens OF (Ib/gal) Underfloor Rate (gpm) Mud Vol (Act) (bbl) 15.0 7.000 8.0 2.2/97.8 1102.0 Hours (hrsJ -011 Under Fl (%) Dens FD (Ib/gal) YP Over (IbfNO... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 21.000 25.000 7.5 7.0 - Type Gel (30m) (IbfH00... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (mL/30... Alkalin (mUmL) Whole Mud Add (bbl) MUtl Addltlvs.AmOllfltS3,.,M"~K sf~h z'~"c ax"~. Potassium 26.000 104.0 32,000.002 0 000 Description Cons... Dally Cost Vendor Salt Base i . BA. DM 2.0 1,575.00 HALLIBU... Tech ENERGY Slticate (%) Electric stab (V) Comment ',. $ervlCe/L... SERVICES p In°' Shake r U'ata{, ~~~~,~.~~ : r ~,~.,~-w ~ .~~ ~ ~~; ,`': ~ r :- ~ •~ , . ... .:.MUD LAB ~ .~. .~~~ .,;,. e.: 1.0 45.00 Description Make Model CLAYSEAL 4.0 3,172.52 HALLIBU... Dryer Derrick 001 ' ENERGY ker Screens SERVICES Deck No. Screen No. Scr SzX In Ser Sz Y In :PAC-L 10.0 1,584.00 HALLIBU... 1 1 1 2 100.000 100.000 80.000'!. ENERGY 80.0001 SERVICES 1 3 80.000 80.000 _ _ Ground Elevation (ft) .: Orig KB Elev (ft) KB-Ground Distance (ft) "iNud Ad`ditiv e,Arritiun ts~~ ,~~ ~ ~~ :~'_ 76.70 95.30 18.60 Description Cons... Dally Cost ~V odor Shaker Checks Potassium , 55.0 895.40 HALLIBU... Dens uF Ib/gal Hro (hro Chloride ENERGY 10.00 SERVICES D in `Shaker'Da ~~. ~~ ..~~~,~ ~`~. ~, ~~~ ~ _~,,,;, ~_ "~ .. ;-~ .__ ~ ,F.w Barazan D+ 5.0 793.55 HALLIBU... Description Make Model ENERGY HG Dryer Derrick 002 SERVICES Shaker Screens Deck No. Screen No: Scr SzX (In) ' DRIL-N-S... Scr Sz Y (In 1.0 774.78 HALLIBU... 1 1 100.000 100.000 ENERGY 1 2 100.000 . 100.000'. SERVICES 1 3 80.000 000'' WALL-NUT 80 18.0 473.40 HALLIBU... 1 4 80.000 . 80.000 M Shaker Checks SERV CES Dens uF (Ib/gaq Hrs hrs) AIdaClde G 2.0 331.86 HALLIBU... ENERGY Description Make Model ~. SERVICES HG Dryer Derrick 003 Baracor 700 2.0 289.42 HALLIBU... Shaker Screens ENERGY Deck No. Screen No. ScrSzX(In) ScrSzY(In) SERVICES 1 1 100.000 100.000 1 2 100.000 ,, Barascav D 100.000 2.0 127.54 HALLIBU... 1 3 80.000 80.000''' ENERGY SERVICES 1 4 80.000 80.000'X-Cide 207 . 1.0 120 28 HALLIBU Shaker Checks . ... ENERGY Dens OF (Ib/gaQ Hro (hro) ~ e ~ - i SERVICES Drill Strin s: BHA #2 Slick , L _ _,.: i st C ~ _ Gh k ' ::..fin , ~ Bit Run Make Bit Inventory Bit Type a as o Item Cost Date ec . ~ ~ ~~~ rype 2 Hughes 8 1/tin, HCM506Z, 7114299 PDC _ IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (ft/hr] Nozzles (/32") IADC Codes ,~.,.~ ` ' --- 1.18 28.4 ~ 16/16/16/16/16!16 M-3-2-3 Last BOPCheck~ I " t~'`- ' -~ - ,560.0 - 4,308.0 ftKB ' Test Date Test Type BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... iMax. Hook Load (Ibf) F 2 2,175.00 2,450.0 550 ormations 151 160 ~ WOB (10001bf) Interval ROP (Whr) Total ROP (Whr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) Formation Name Sample Top MD (HKB) 20 32.5 28.4 23.00 4,000.0 140 10.0 ,Nanushuk Group 1 072.0 Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) OR Bottom Torque Torque Units SO HL (10001bf) , 150 76.50 980.0 Base PermatrOSt Amps 160 1,090.0 H draulic Calculations Nanushuk topset sst. 2,380.0 AV DP (itlmin AV DC ft/min ' Ert Torok 2,834.0 A casing string contains a null value in Depth Conductor;Pi a 100'.OftKB Drill Strin Com onents csg Run Date oD (In) Grade Wt (Ibs/ft) Mtr 1/26/2007 16 H-40 65.00 Top i Item 'Densit Drift Conn 9z Ban send Surfat:e Casio 2 1]5.4ftKB i A le Conn Sz B , y Jls Description Len (ft) OD (In) tlbs/ft) ' Grade ID In (In) (In) Top ThrdI ( ) tm Csg Run Date OD (in) Thrd; Un) Cum Len (ft) ' Grade Wt (Ibslft) , , . 2/16/2007 9 5/8 L-80 40.00 90 Drill Pipe 2,806.... 4 14.00' X95 3.340 4 FH 4 FH 3,560.50' ~ ~~~. , ~ , ~ 10 HWDP 310.28 4 27.20~~ 2.750 4 FH ~ ~ ~'~~~ 83 Cement ..~~ 4 FH 753 J J „~„ ~.~,-~. ry~~ _ ~`~~ E 1 Drilling 22.45 4 2.000 4 FH . Cmnt Des 4 FH 443.55' I Comment Jars - Hydraulic o u~nino n~o ~~ ~ n-r nn,. n ~~n . ~~ ~ ~. ~. , ..,. ...~ _ _ _ __ _ _ _ Job Spud Date ', Rig Release Date Ground Elevation (k) Orlg KB Elev (k) KB-Ground Distance (k) '~~AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 ' AF62035 23,556,979.00 zsssss7s.oo :Safe ~* ~~ > v ~ ~ ~~_(~ ~ ~ rn $~~' x g, a ~,~*~ ~' ~. ~' tp„„ Target Depth (kK8) Target Formation Type Date Comment Safety Highlight 2/28/2007 Preventing the spreading of Flu germs. Dauy costTotal ~ Cum Cost To Date 231,294.78 .. x*: 4 .a "v" ~:_~ ~ ~ ~` ''~,~"~~ z ~ ~' ~" x" ball'.Suinma 'r ` 3 ~ 6,392,041.50 _ , ~'~~ a. t ~s,~ex~. ~ ~ { ~ ~~ " t ~'~ ~~ ; Daily Mud Cost Weather Lease /Road Conditions Wellbore Condition Over (+) /Under (-) AFE (+!) Var Days Mud Cum To Date -20 W/ Slight Wind Clear of all Snow Good 3.5 3,358.03 159,945.50 - Depth Start (ftK6) Operations @ 06:00 Depth End (kK6) DRILL 8 1/2" HOLE /DEPTH 4870' KB 4,308.0 _ 4,656.0 Operations This Report Period ~, Depth Progress (ft) Drilling Hours (hrs) DRILL F/ 4308' TO 4656', SHORT TRIP AT 4605' TIGHT SPOTS WITH 20K MAX OVERPULL AT 4603', 4520', 348.00 8.00 4341', 4015', 3772', 3440', 3019' 2887 AND 2719'. ~"'' ~` ~ ;' D ' a_" ily.Fareman Contact .~ Operations Next Report Period Job contact Cen Phone _ _ DRILL F/ 4656' TO CASING POINT Time Loy ~~, ~_' SS :t .;v ~~~:~.`~' ?k.~~' .;~Wt,~~...~ ,,,yrRl s: Do on AW Start Dur Ops Scheduled - Depth End Rlg Supervisor Time (hrs) Cat Type Phase MaorO Operation Trouble (kK6) Comment Bob Lupton Rig Manager 00:00 5.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 4,556.0 , DRILL 8 1/2" HOLE Mud Pum s: 1 GardnervDenver i?Z-9 Op , F/ 4308' - 4556' K B No. Pwr (hp) Rod Diameter (fn) 05:30 1.00 Drlg Trbl 3rd Drlg Int 1 Drilling Rig Repair/ Rig 4,556.0 REPAIR LINER 1 1,000.0 0 Party Service Repair COOLING PUMP Liner Size (In) Stroke (In) Voi/Stk OR (bbl/s... ON #1 MUD PUMP 5 1/2 9.02 0.066 06:30 1.00 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 4,605.0 DRILL 8 112" HOLE pump Checks Op F/ 4556' - 4605' KB strokes 07:30 2.00 Drlg Planned Drlg Int 1 Drilling Circ i3< Cond No Trbl 4,605.0 MIX & PUMP HIGH Pres (psq slowspd (spm) Eff (%) Op Mud VIS. SWEEP / 265.0 Yes 50 95 PUMP PILL / 2,650.0 No 110 95 BLOW DOWN .Mud Pum s: 2, Gardner-Denver, PZ-9 - STAND PIPE F/ No. Pwr (hp) Rod Diameter (in) WIPER TRIP 2 1,000.0 0 9:30 6.00 Drlg Planned Drlg Int 1 Drilling Short Trip No Trbl 4,605.0 Liner Size (in) Stroke (in) Vol/Stk OR (bbl/s... SHORT TRIP TO 9 5 1/2 9.02 0.066 Op 5/8" CASING SHOE @ 2115' KB 'Pum Checks 15:30 0.50 Drlg Planned Drlg Int 1 Drilling Rig Repair! No Trbl 4,605.0 SVokes SERVICE RIG & Pres (psq SlowSpd (spm) EB(%) Op Service TOP DRIVE 260.0 Yes 50 95 16:00 1.00 Drlg Trbl 3rd Drlg Int 1 Drilling Rig Repair / .Repair 4,605.0 WELD TORQUE 2,650.0 No 110 95 Party Service Other TUBE BRACE / Shakers: <Descrl tlon?> SHUT DOWN TOP Make Model DRIVE F/ SERVICE Shaker Screens 17:00 2.50 Drl g Planned Drl Int 1 g Drillin g Short Tli No Trbl p 4,438.0 RUN IN F/ 2115' screen ~, Deck No. No. scr Sz X (In) Scr Sz Y In) Op KB TO 4438', HOLE STARTED TO TAKE WEIGHT Shaker Checks SO WE STOPPED 'Dens OF (Iblgaq Dens OF (Ib/gaq ' Hrs (hrs) 76.70 95.30 ~ 18.60 m~pmol uici l 1 l 1 4,611.61 0.56 266. """ OperetlOOS @ 06:00 •uepcn scan p~nol uapw cnu pino~ . '': PRESSURE TEST BOP 4,656.0 ~ 5,188.0 , Depth Progress (K) Drilling Hours (hrs) Operations Thfs Report Period Drill F/ 4656' to 5188'. At 5188' Rotary Torque Jumped to 9K Then Fell off right away, Rotary Torque fell to Zero 532.00 13.50 And Could Not make It Drill At All. ~ ', ~`~v.~~-~~a ~ti ~' 'Dat Foreriman Contact, ,., ., L Operations Next Report Period Cali Phone Job Contaet Test BOP, RIH and Drill To Logging Point. Time Lo ~~~~4 ,~ ~> ' s.~ a..n_. ~,_: RI's: Do~ o Start Dur i Ops Scheduled - Depth End ~, Rig Supervisor Time t (hrs) Cat Type Phase MaJorOp Operation Trouble (~B) Comment BOb Lupton, Rig Manager 00:00 13.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 5,188.0 DRILL 8 1/2" HOLE .Mud Pumps: 1,Gardner-Denver PZ-9 Op , F/ 4656' To 5188 No. Pwr (hp) Rod Diameter (in) 1330 2.00 Drla Planned Drla Int 1 Drilling Drill -Rotary ' No Trbl 5.188.0 Trv To Make Bit 1 ~ 1.000.0 I 0 1 3 80.0001 80.000 Barazan D+ 6.0 952.26 HALLIBU... Shaker Checks ENERGY Dens OF Ib/gal) Hro (hro) SERVICES ' 10.00 ' ~ ` - < . ..: ,,~ DRIL-N S... , 1. 0 774.7 8 .. HALLIBU . A in Shaker,D ,,, . .' , ata ~ ~ :~' _ .~~._-,~A ~ °.- ~~;. x~~.-_r. ~ ENERGY ' Descriptlon Make Model SERVICES HG Dryer Derrick 002 ' Shaker Screens DEXTRID 12.0 748.08 HALLIBU... GY Deck No. Screen No. Scr Sz X (in Scr Sz Y (ln) LT ENER 1 1 100.000 100.000 SERVICES 1 2 100.000 100.000'Aldacide G 4.0 663.72 HALLIBU... 1 3 80.000 80.000_ ENERGY 1 4 80.000 80.000 SERVICES ' Shaker Checks Baracor 700 4.0 578.84 HALLIBU... Dens OF Ib/gal Hro (hro ENERGY SERVICES Descriptlon Make Model !. Baradefoam 4.0 439.40 HALLIBU...' HG Dryer Derrick 003 . 'HP ENERGY Shaker Screens SERVICES . Deck No. 1 Screen No. 1 Scr Sz X In 100 000 Scr Sz Y (In . WALL-NUT 000' 100 12.0 315.60 HALLIBU... 1 2 . 100 000 , . 000 M 100 . . SERV CES 1 3 80.000 80.000 1 4 80.000 80.000 Potassium 2.0 119.38 HALLIBU... Shaker Checks 'Hydroxide ENERGY SERVICES Dens OF (IWgaq Hro (hro) Barofibre 4.0 100.64 HALLIBU... ill Strin s: BHA #2 Slick ~ ~~ ~~~ ENERGY Run Make Bitlnventory Bit Type ItemCOSt ~ SERVICES 2 Hughes 8 1/tin, HCM506Z, 7114299 PDC 15,166.50 IADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles Q32") IADC Codes Last CdS)n Check • `,.~ 1-1-PN-N-X-O-NO-PR 1.04 31.2 15/15/15/15/15/15 M-3-2-3 Date Type 656.0 - 5,188.0 ftKB ~ ~, - ~ ~> ~~ ~ BHA No. Cum Depth (tt) SPP(psi) Flow Rate (gpm- TFO Reference R ot HL (10001... Max. Hook Load (Ibt) ~gt Bt)f~ CtieCiC",~ '"~ „+~~Yr~~~~.~'~~ 2 3,055.00 3,000.0 550 188 18$ Test Date TeslType WOB (10001bf) Interval ROP (ft/hr) Total ROP (fUhr) Drilling Time (hro) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) 20 39.4 31.2 13.50 4,500.0 178 25.0 ', Formations Bit RPM (rpm) Motor RPM (rpm) - ,Cum Dr111Yime (hrs) Off Bottom Torque Torque Units SO HL (t0001bf) Sam 150 98 .00 I 980.0 Amps 192 Formation Name MD (tttce) 1 H drautic Calculations NanUS11Uk GrOUp 072 0 1 AV DP itlmin Av DC ttlmin err ~. ~. Base Permafrost 1,090.0 'A casing string contains a null value in Depth ! Nanushuk topset sst. 2,380.0 Drill Strin Com onents ':.Torok 2,834.0- My Contluctor Pi e,100.t)ftKB - Ib I G d Wt /ft ~~ OD Item Density : =Drift Conn Sz :Cone Sz gtm n) ( Ang @ Csg Run Date S 1 /26/2007 16 ° ra e ( s ) H-40 65 00 Jts Descriptlon Len (ft) OD (in) (Ibs/ft) 'Gra de ID (In) ' (ln) (i^) Top Thrd P^) Thrd ) Cum Len (R) `' ( . 143 Drill Pipe 4,436.... 4 14.00 X95 3.340 4 FH 4 FH 5,189.83': Surface Casin , 2,11 5.4ftKB 10 HWDP 310 28 4 27.20 2.750 4 FH 4 FH 753.83- 'Csg Run Data 'OD pn) Grade Wt (Ibs/h) . 2/16!2007 9 5/8 L 80 40 00 1 Drilling 22.45 4 2.000 4 FH 4 FH 443.55 ` `~ . ~ r ' ' Jars- ~~ Cernent ~°~~~.~~ ~ ~ n?i~ s~ ~~ ~~ HydraUllC CmntDes Comment 8 HWDP 248.74 4 27.20: 2.750 4 FH 4 FH 421.10- 1 XO Sub 2.00 6.28 2.500 4 FH 4 1/2 IF 172.36. ' 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF 170.36! D.C. 1 NM FLEX 30.87 6 3/4 2.880 4 112 IF 4 1/2 IF 139.28', D.C. 1 Stabilizer 5.62 6 314 ' 2.810 4 1/2 IF ' 4 1/2 IF 108.41'' 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.79' & Logging) BAT 1 MWD (Dir 10.00 6.76 4.880 4 1/2 IF 4 1/2 IF 80.37', & Logging) ', TM '~ Report Printed: 312/2007 76.70 95.30 18.60 Drill Strin Com onents Mtr ' Top Btm : Bend Item Density DrNt Conn 3z i ConnSz gtm - '.Angle.. Jts Description Len (ft) OD (In) (Ibs/R) Grade ID tin) (In) (h) Top Thrd ' (In) Thrd. Cum Len (ft) ~~) 1 MWD (Dir 9.21 6.79 4.560 4 1/2 IF 4 1/2 IF 70.37" & Logging) PM3 1 MWD (Dir 29.98 6.73 ~ 4.630 4 1/2 IF ~ 4 1/2 IF 61.16'; 8~ Logging) I NUKE I, 1 MWD (Dir 27.96 6.76 4.630 4 1/2 IF 4 1/2 IF 31.18! ' & Logging) FE 1 Bit Sub 2.22 6.51 2.750 4 1/2 IF 4 1/2 Reg 3.22' w/Float ,, ~ Wellbore Name VS Dlr (°) , Kick OK Depth (ftK8) Original Hole 0.00 Directional Surve s Date Description 2/28/2007 MWD surveys Surve Data MD (ftKB) InG (°) Azm (°) TVD ftKB) NS ft) EW (ft) VS (ft DLS l100ft) Survey Company 4,800.15 0.33 210.26 4,799.51 -40.19 -18.85 -40.19 0.25 HALLIBURTON 4,988.24 0.57 265.98 4,987.59 -40.72 -20.05 -40.72 0.25 HALLIBURTON 1 Spud Date Rig Release Date Ground Elevation (ft) _ _. .. Drig KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup 2/1512007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 tc..+y~x ~.~ '~• ro m r ~, ~ y xr~:' .' :; " Target Depth (ftKB) Safe {..,.,,.~ ~. ~ -: ~ .~ .~~ ~ ~ . s-ar .y w, Target Formation Type Date Comment Safety Highlight 3/2/2007 Safety When Laying Down Sperry Sun Nuke Tools .Daily cost Tow/ Cum Cost To Date `• 376,574.00 :;,~ ~`"r ,~r~~ ~+, ~~ n~ ~ ~- ; ~ ~ 4s " ~`~~ il Summa ,- D ' = ~ ~'"~ ~' `` 'r` 7,273,717.09 . , ; a ,.. =t . .u r . .~, <.~ ._ _ - r a +~ • - ,Dally Mud Cost Weather ~ Lease /Road Conditions- Wellbore Condition Over (+) I Under (-)AFE (+/-) Var Days 620 00 1 Mud Cum To Date 172 650.09 , . -20 W/ Slight Winds Clear of all Snow Good 4 Depth Start (ftKB) , Depth End (ftKB) Operations @ 06:00 5,188.0 l t Sh RIH B k Ci ti 5,188.0 on a oe rea rcu a , Depth Progress (ft) Drilling Hours (hrs) Operations This Report Period Change Bit and Pick Up BHA 0 00 Test All BOPE MWD Data and Rack Back BHA Dum FINISH POOH , , , p a Operation s Next R eport Pe rl od C,OntaCt ~ ma Dally FO ~ e l RIH to TD Dnl .: g l to Lo g In Poin g ~ ~ ~ t ,~ : - w ~ ~ -~ ; ~ o~ ~ ~ ~ Phone C l ~ ~ ' Time L Stag ~,,, o Dur ,~ ~ . OPs ~ y~, V y Scheduled ~ u ~ ~~ . - ; .~ rf ~' Depth End ftKB ~ ' w"~: '. RI S:-DO on AW C t Time (hrs) Cat Type Phase MaJor Op Operation Trouble ) ( ommen 'Rig Supervisor 00:00 5.50 Drig Planned Drlg Int 1 Drilling Trip Out No Trbl 5,188.0 HOIST BHA /LAY gob Lupton, Rig Manager OP DOWN PULSER, 'Gia~dhervDenver' PZ•9 Mud Pum s; 1 , TM, & BAT SONIC No. Pwr (hp) Rod Diameter (In) 05:30 2.00 Drlg Trbl 3rd Drig Int 1 Drilling Repair Other .Repair 5,188.0 BREAK OUT 1 1,000.0 0 party Other SAVER SUB ON uner Size pn) Stroke pn) Vol/Stk OR (bblls... TOP DRIVE & 5 1/2 9.02 0.066 REPAI R HYDRUALIC MUD Pum Checks SAVER strokes Prea (psi) Slow Spd (aPm) EH (%) 07:30 1.00 Drlg Planned Drlg Int 1 Drilling BOP No Trbl 5,188.0 PULL WEAR 3,000.0 No 110 95 Mud Pum s: 2 Gardner-Denver PZ-9 Op BUSHING 08:30 2.00 Dri 9 Trbl 3rd Drl Int 1 9 Drillin 9 Re air Other Re air P P 5,188.0 CONTINUE NO• Pwr (np) Rod Diameter (In) 2 1,000.0 0 party Other REPAIR ON '.uner size (in- woke pn) VollStk OR (bblls... TESCO 51/2 9,02 0.066 HYDRUALIC MUD SAVER Pump Checks ___ Strokes 0:30 8.50 Drlg Planned Drlg Int 1 Drilling BOP No Trbl 5,188.0 PRESSURE TEST Pres psi slows (sPn+) Eft % pp BOP-TEST No ANNULAR 250 & Shakers:.<Descrl tion?> 2500 PSI /TEST 'Make Model UPPER & LOWER PIPE RAMS, Shaker Screens BLIND RAMS, HCR screen VALVES, INNER Deck No. No. scrSzXpn) scrSzY(in) BOP VALVES, UPPER KELLY Shaker Checks COCK, ~ CHOKE Dens OF (Ib/gal) Dena OF (Ib/gal) Hro hro) MANIFOLD - 250 & 5000 PSI. ALL TESTS 10 MIN HGS Centrifu e, DeFrick, 2Modell> EACH (OK) / Make Model ' .Derrick PERFORM ACCUMULATOR Centrifu elC clone Checks TEST /BLOW Density overflow pblgaq Overflow Rate (gpm) DOWN CHOKE MANIFOLD & Dens OF pblgap Underflow Rate (gpm) LINES W/ AIR :Hours (hrs) OII Under FI (%) Dens FD (Iblgal) 19:00 0.50 Drig Planned Drig Int 1 Drilling Rig Repair / No Trbl 5,188.0 Mud Additive Arne omits ~' .~.;~~F~~~ Service Rig Description Cons... Daily Coat Vendor MUD LAB 1.0 45.00 Op Service T l 188 0 5 ll Mud BA. DM 2.0 1,575.00 HALLIBU... wn Bl D 19:30 1.00 Drig Planned Drlg Int 1 Drilling rb BOP No . , ow o a Tech ENERGY Pull test lu Li es Op g p n , and Set Wear Service/L SERVICES Bushing k asln~aCh s 20:30 0.50 Drig Planned Drig Int 1 Drilling Safety Meeting No Trbl 5,188.0 ec La t C PJSM on Picking Date. Type pP Up Nuke Tools :00 3.00 Drlg Planned Drig Int 1 Drilling Trip In No Trbl 5,188.0 Pick Up BHA #3 Last BOP~Ghec ~' ~c,:~,~;• Op Test Date Tast Type - -- - -~ Report Printed: 3/5/2007 76.70 ~ 95.30 ~ 18.60 ORIGINAL HOLE I 0.00 2/28/2007 I MWD 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23 556 979.00 n - a ~ `, `.¢~:ab~w~, ., ~~' - ~ Safe - ,- ~, , , iTarget Depth (flK6) Target Formation , Type Date Comment Safety Highlight 3/3/2007 Proper orientation of all new personnel. Daily cost cowl Cum Cost To Date . .. ' `_ ~~ Dail Summa ~'~ J ~ ±~~ ~ ~ -~ '1 ` " ~'' ; 254,520.83 7,528,237.92 ~: . Weather . . w _, ,. , .. >< s ; ;... , . Lease /Road Conditions Wellbore Condition ~ : ; Over (+) /Under (-) AFE (+/_) Var Days Daily Mud Cost Mud Cum To Date -30 W/ Slight Winds Clear of all Snow Good 5 8,866.83 181,516.92 Operations @ 06:00 Depth Swrt (ftKB) Depth End (itKB) ° DRILL 8 112" HOLE /DEPTH 5950' KB 5,189.0 5,680.0 Operations This Report Period Depth Progress (ft) Drilling Hours (hrs) No accidents, No spills, Held Safety Meetings. Pick Up BHA, RIH, Drill to 5680, No problems running in hole, 491.00 11.00 ream last 60 feet to bottom. Drag up = 190K, Down = 202K, Rotate = 182K and Rotary Torque is 4800 fUibs ~:°~ .*~ ~ .,+ -~. ~' YM1 Pumped nut plug sweep (six sacks) at 5700' MD sweep brought up a fair amoumt of cuttings Dail .Eortiinan;Cfinta , . Job Convect Cell Phone Operatio ns Next Report P eriod Drill to Loggin g Point As/Per G eologists Inst ructions R( s: Do on AW Time L O~ s + . _ ~..~.va~ .>..,.. P ~ `~"~ ~ ;~ G '~~ ~ ~`~, , w , ~ ~,,.,,~,~=: r, ~"'''` s'^ w ~,g`Rig supervisor Start Dur Ops Scheduled Depth End BOb LUPtOn, Rig Manager Time (hrs) Cat Type Phase Ma)orOp Operation ! Trouble (ftK6) Comment Mud Ptim" s: 1 GardnervDenver PZ-9' 00:00 4.00 Drlg Planned Drlg Int 1 Drilling Handle Tools No Trbl 5,188.0 MAKE UP LWD , No. Pwr (np) Rod Diameter (In) Op BHA ~ SHALLOW 1 1,000.0 0 TEST .Liner Size (In) .Stroke (in) VoVStk OR (bbl/s... 04:00 3.50 Drlg Planned Drig Int 1 Drilling Trip in ' No Trbl 5,188.0 RUN IN HOLE TO 5 1/2 9.02 0.066 Op 2100' 'Pum Checks 07:30 0.50 Drig Planned Drlg Int 1 Drilling Circ Casing ' No Trbl 5,188.0 BREAK strokes Op CIRCULATION @ 9 Pres (psp SlowSpd (spm) Ett(%- 5/8" CSG SHOE / No BLOW DOWN Mud Pum s: 2 Gardner-Denver PZ-9 `' MUD LINES W/ No. Pwr(hp) RodDlameterpn) ' AIR 2 1,000.0 0 Liner Size (In) Stroke (In) Vol/Stk OR (bbl/s... ~:; 08:00 2.50 Drlg Planned Drlg Int 1 Drilling Trip In '. No Trbl 5,188.0 RUN IN HOLE W/ ~ 5 1/2 9.02 0.066 Op LWD TOOLS & 8 1/2" BIT Pump Checks __. Strokes.. . 0:30 2.00 Drlg Planned Drig Int 1 Drilling Ream & Wash No Trbl 5,188.0 CLEAN & WASH Pres psi SlowSpd (spm). EH(%) Op TO BOTTOM F/ 3,000.0 No 110 95 5134' - 5188' KB Shakers: tDescrl tlon?> 12:30 2.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary i No Trbl 5,306.0 Drill F/ 5189' to Make Model Op 5306'. 15:00 0.50 Drlg Planned Drlg Int 1 Drilling Rig Repair / No Trbl 5,306.0 Service Rig 'Shaker Screens Op Service ;screen Deck No. ; No. Scr Sz X (In) Scr Sz Y (In) 15:30 8.50 Drig Planned Drlg Int 1 Drilling Drill -Rotary ,No Trbl 5,680.0 Drill F/ 5306'to Op 5680'. Shaker Checks Mud C hecks: 5,417. OftKB,-3/ 3/2007 17:00- ' ~ Dens OF (Iblgal) ;Dena OF IWgal ' Hrs hre) Density (Ib/gal) pH CEC for Cuttings Pf (mL/mL) Caklum (mg/L) % Water (%) Mud Lost (Hole) (bbq 9.80 9.0 0.180 89.5 HG5 Centrifu e, l)errii:k <Model?> ` Vis (slgt) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) jPowssium (mglL) Percent Oil (%) Mud Lost (Surf) (bbl) .Make Model 49 6.2 1 0.300 1.5 97.0 Derrick PV Over (cp) Gel (70s) (Ibf/100f... Sand (%) MBT (Ib/bbl) .Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbq Centrifuge/C clone Checks 18.0 10.000 8.5 1.6/98.4 :Density Overflow pblgaq Overflow Rate (gpm) YP Over (Ibf/10... Gel (70m) (Ibf1100... Solids (%) LGS (%) Polymer (ppm) LCM MudVol (Res) (bbq 21).000 32.000 6.6 4.4 Dens OF (Ib/gal) Underflow Raw (gpm) type Gel (30m) (Ibf1700... T (fl) (°F) Chlorides (mg/L) I,HTHP Ftlt (mL130... Alkalin (mlJmL) Whole Mud Add (bbl) Potassium 30.000 94.0 31,000.000 Q000 Hours (hrs) OII Under FI (%) 'Dens FD (Iblgaq Salt Base Silicate (%) Electric Stab (V) Comment "' ~~ q ~. ~,~*?" Mu l ive A ount ~ ~ ~ ' Maintain mud wt at 9.5 as Centrifu a allows, until 5600 when mud wt. to 10.5 in g " m : dd t s k , „,~ ~ Description Cons Daily Cost Vendor . preparation for logging at 7100. Maintaining viscosity at 47-50 Funnei Vis for gA 0 1 DM 2 575 00 HALLIBU hole cleaning. Beginning to add Baro-trot Plus to system as per Mud Program. . , ... . . Tech ENERGY ~: ~e = D in ' Shakf:~Data ' ~ ~ ' ~~ "'. "` ~ ~ Service/L... SERVICES ~ ~ , ,. ~ > .. ,~ ~' ,- .~ *: ~ _ Description Make Model :MUD LAB 1.0 45.00 HG Dryer Derrick 001 Baro-Trol 30.0 1 906.20 HALLIBU... Shaker Screens , Plus ENERGY Deck No. Sereen No. Scr SzX Ih Scr Sz Y In SERVICES '" 1 1 200.000 1 2 200 000 ~DRIL-N-S•.. 2.0 1,549.56 HALLIBU... . ENERGY 1 3 200.000 1 4 200 000 SERVICES . Shaker Checks ,CLAYSEAL 1.0 793.13 HALLIBU... Dens OF IW al Hre hrs ENERGY SERVICES 10.00 b Spud Date -Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) 'AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 Safe ,z,~. _ ...:~ r ~~`,..~ , .~.'-;` .-,~.-.:: ~.~ .,. - .. <. ," , r ,~~t~^~'"„~~„'`~`TargetDepth (kK6) Target Formation Type Date Commend Safety Highlight 3/4/2007 Talked About Stop Program. '.Davy cost Total Cum Cost To Date Dail Summa ~` `_~ ~',. ~.~pa~,' ~;: ~..z`,~~~~.~~.3~~n~ ~- `7;: s ~}"~~ .~ ~~;, .~ 242,731.95 .~..~ ~ ~ 7,770,969.87 (+/•) Var Days ~. Daily Mud Cost Weather Lease /Road Conditions Wellbore Condition Over (+) / Under O AFE Mud Cum To Date -30 W/ Slight Wind Clear of all Snow Good 5 19,910.95 ~ 201,427.87 Operations @ 06:00 , Depth Start (kKB) Depth End (kKB) DRILL 8 1/2" HOLE /DEPTH 6600' KB 5,680.0 6,449.0 Operations This Report Period '. Depth Progress (k) Drilling Hours (hrs) Drill F/5680' to 6449', Weight Up Mud System to 10.5 PPG. No Hole Problems. 769.00 _ X1.00 L Operations Nezt Repoli Period ~°~i : ' ~ ~ ~ `- ' ~ r ~~. ~ Drill to Logging Point As1Per Geologists Instructions Daily Foreman Contaot `~. -< ~'` :''. „ `:a `f" '' ~° ~"H. ~ a "r~s `: `t -r ~.~:* Job Contact - ~_ CallPhona ~ rwt ttf k ~ Time Lo . ~., ~ ,~:..~K-~:::. ~'~~~~ ~> ~ ,-~~=,w~.>~:, .. ., ~ .- il~•~ ~ ~ , ~. ,. ~~~ ~~ ~~ Start Dur Ops Scheduled Time (hrs) Cat Type Phase Ma)or Op Operation Trouble Depth End (ffK6) Comment R~gB-Do On AW ~ • " 00:00 9.50 Drig Planned Drlg Int 1 Drilling Drill -Rotary No Trbl Rig Supervisor 6,115.0 DRILL 8 1/2" HOLE gob Lupton, Rig Manager Op F/ 5680' - 6115' KB Mud Pum" s: 1 Gardner-D rtiv r' P2-9 09:30 1.50 Delg Trbl 3rd Drlg Int 1 Drilling Rig Repair / 'Rig , e e .: 6,115.0 CIRCULATE & No. Pwr (hp) Rod Diameter (in) Party Service ',Repair REPAIR.#1 PUMP 1 1,000.0 0 (REPLACE SWAB) ,Liner size (m) stroke (tn) ~VollStk OR (bblls... 11:00 0.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary I No Trbl 6,135.0 DRILL 8 1/2" HOLE ' 5 1/2 9.02 ~ 0.066 Op F/ 6115' - 6135' KB ~ Pump Ghecks 11:30 1.00 Drig Trbl 3rd Drlg Int 1 Drilling Rig Repair / !Rig 6,135.0 CIRCULATE'& strokes Party Service ~ Repair REPAIR #1 PUMP Pres (psi slow spd (spin) _ Eft (%) ~' (REPLACE LINER 355.0 Yes 50 95 GASKET) I 3,300.0 No 110 95 12:30 8.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary ' Rig 6,242.0 DRILL 8 1/2" HOLE Mud Pum ` s: 2, Gardner-Denver, PZ-9 ",. . Op Repair F/6315' TO 6429' No. Pwr (hp) Rod Diameter (In) 2 1,000.0 0 21:00 0.50 Drig Planned Drlg Int 1 Drilling Rig Repair / ,Rig 6,242.0 LUBRICATE RIG liner size pn) Stroke (In) Voi/SUc OR (bbl/s... Op Service .Repair 51/2 9.02 0.066 1:30 2.50 Drlg Planned Drlg Int 1 Drilling i Drill -Rotary Rig 6,449.0 DRILL 8 1/2" HOLE 'P Ch k Op ~ Repair um ec s F/6429' TO 6553' strokes Mud Checks:5912.OftK6 3/4/200704:00:. Pres(psq slowspd (spin) Eft(%) Densi ly (Iblgal) pH CEC for Cuttings Pf (mUmL) Calcium (mglL) % Water (%) Mud Lost (Hole) (bbl) 350.0 YeS 55 95 10.50 8.5 0.170 86.0 3,300.0 No 95 95 Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent OII (%) Mud Lost (surf) (bbl) Shak@rs::<Descri tion?> 43 6.8 1 1.000 33,999.998 1.5 97.0 Make Model PV Ovar (cp) Gel (tOS) (Ibf1100f... Sand (%) MBT (Ib/bbl) 'time (Ib/bbl) OII Water Rato Mud Vol (Act) (bbl) 15.0 9.000 0.5 9.0 1.7/98.3 YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (%) LGS (%) ',Polymer (ppm) ',Shaker Screens LCM Mud Vol (Res) (bbl) Screen 15.000 20.000 10.2 6.2 ' 'Deck No. No. scr sz x pn- Scr Sz Y (In) Type Gel (30m) (Ibf/700... T (fl) (°F) Chlorides (mg/L) '..HTHP Filt (mU30... Alkalln (mUmL) Whole Mud Add (bbl) Potassium 27.000 110.0 31,000.000 0.000 Shaker Checks Salt Base Dens OF (Iblgal) .Dens OF (Iblgal)°, Hrs (hrs) Silicate (%) Electric Stab (V) Comment Started 4 Ib/bbl of Barotrol into active system. Weighting up 10.5 w/ BARACARB .HGS Centrifu e' Derrick <ilAodelT> 25 & 50 and BARITE. Set water at 3-4 gpm (5 /o dilution). Continue to sweep - hole every 300 ft. w/ 20 bbis of hi-vis sweeps. Make Model Derrick Mud Checks: 6,318.OftK6" 3/412007 18:00 ~':.~~... .. '.'"i Centrifu e/C clone Checks ~ ~~ Density (Iblgal) pH CEC for Cuttings Pf (mUmL) ',Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) ',Density Overflow (Ib/gal) Overflow Rate (gpm) 10.40 8.5 0.150 ' 86.0 Vis (slgt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) 7.Potasslum (mg/L) Percent OII (%) Mud Lost (Surf) (bbl) ~ Dens OF (Ib/gal) UnderFlow Rate (gpm) ~ 46 9.0 2 0.000 1.0 PV Over (cp) Gel (10s) (Ibf/100f... Sand (%) MBT (Ib/bbl) LLIme (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbl) ~. Hours (hrs) '~OII Under FI (%) ',, Dens FD (Iblgal) 16.0 15.000 10.0 1.1198.9 1156.0 YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) M a dltlVe t ~ttl0 ~ ~(1tS~ ~r~">~'~-~ ~'" '*i 20.000 36.000 ~ 10.4 7.7 t . , . 115.0 ~ y"'"""' Description Cons... Dally Cost Vendor Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalln (mlJmL) Whole Mud Add (bbl) '.MUD LAB 1.0 45.00 Potassium 34.000 116.0 35,000.000 0.000 gq. DM 2.0 1,575.00 HALLIBU... Salt Base Tech ENERGY Silicate (%) Electric Stab (V) comment Service/L... SERVICES ' " ~ _- Baro-Trol 53.0 3,367.62 HALLIBU... D In ;Shaker`Da#a . ~~ ,. ,~.. ~r f . ,~,.. , -_ _ ..:. < . ..<. ~e ~ =~.,~ . .." ~'~~ Plus ENERGY escriptlon Make Model SERVICES Dryer Derrick 001 haker Screens Barazan D+ 12.0 1,904.52 HALLIBU... Deck.No. screenNO. ScrSzX(In) - ScrSzY(In)-°. ENERGY 1 1 200.000 SERVICES 1 2 200.000 76.70 95.30 18.60 Description Cons.:. . F _ Dally Cost _._ ..._...._.. Vendor : Shaker Screens Baracarb 25 90.0 1,753.20 HALLIBU... Deck No. Screen No. Scr Sz x In) Ser Sz Y (In) ENERGY 1 3 200.000 I SERVICES 1 4 200.000 'Baracarb50 90.0 1,693.BOHALLIBU... Shaker Checks ENERGY Dens OF IW al Hro (hro) SERVICES 10.00 m F„ 'CLAYSEAL 2.0 1 586.26 HALLIBU... _ ;~- D.. in `Shakes Data„~ -+~~ ~ ,~- s , ENERGY Description Make Model SERVICES HG Dryer Derrick 002 ' Shaker Screens DRIL-N-S... 2.0 1,549.56 HALLIBU... Deek No. Screen No. Scr Sz X in Scr SzY Qn) - ENERGY 1 1 200.000 SERVICES 1 2 200.000 ;CON DET 3.0 1,301.40 HALLIBU... 1 3 180.000 ' ENERGY 1 4 180 000 ' SERVICES . ` Shaker Checks PAC-L 7.0 1,108.80 HALLIBU... Dens OF Ib/gal Hro (hro) ENERGY SERVICES ?` Description Make Mosel '. Potassium 15.0 895.35 HALLIBU... HG Dryer Derrick 003 'Hydroxide ENERGY ''" Shaker Screens ' SERVICES Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In) 1 1 200.000 garOld 80.0 818.40 HALLIBU... 1 2 200.000 ENERGY SERVICES 1 3 200.000 1 4 200.000 DEXTRID 7.0 436.38 HALLIBU... LT ENERGY Shaker Checks SERVICES Dens OF Ib/gal) Hro (hro) Baracor 700 3.0 434.13 HALLIBU... rill-S4rin' s: BHA#3 Siick ~ ~;• ~ ~ ~~ ,~~: `~~ ~, ~ ~,' ENERGY t Run ,Make Btt Inventory Bit Type Item Cost SERVICES 3 Hughes 8 1/tin, HCM605, 7101484 PDC 22,833.00 potassium 25.0 407.00 HALLIBU... •. IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (ft/hr) Nozzles (/32") IADC Codes Chloride ENERGY ------- 0.65 39.4 13/13/13/13/13 M-3-2-3 SERVICES 0.0 - 6,449.0 ftK6 5,68 !-. '- >_ a v. .. ' f ~`~~~ ~ ~~ I Aldacide G 2.0 331.86 HALLIBU... No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference BHA Rot HL (10001... Max. Hook Load (Ibf) ENERGY 3 1,260.00 330.0 550 205 200 SERVICES WOB (10001bf) Interval ROP (ft/hr) Total ROP (fVhr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) 15 36.6 39.4 21.00 6,500.0 215 10.0 WALL-NUT 12.0 315.60 HALLIBU... -' Bit RPM(rpm) Motor RPM (rpm) - ~~Cum Drill Time (hrs) otf Bottom Torque Torque Units SO HL (10001bf) .', M ENERGY 150 32.00 3,000.0 Ftlbs 225 SERVICES H draulic Calculations ' Barascav D 3.0 191.31 HALLIBU... AV DP (ft/min AV DC ft/min) En ENERGY A casing string contains a null value in Depth SERVICES ' Drill Strin Com onents X-Cide 207 1.0 M 120.28 HALLIBU... Top Btm ; ' tr Bend l A ENERGY SERVICES Item Density Drift Conn sz , Conn Sz etm ng e ' Jts Description Len (ft) OD In) (Ibs/ft) Grade ID (In) (In) (In) Top Thrd pnl Thrd Cum Len ft) ( ("> ! garofibre 3.0 75.48 HALLIBU... 186 Drill Pipe 6,553.... 4 14.00 X95 3.340 4 FH 4 FH 7,307.38, ENERGY 10 HWDP 310.26 4 27.20 2.750 4 FH 4 FH 753.62 SERVICES 1 Drilling 22.47 4 2.000 4 FH 4 FH 443.36 ~ X„t t : a- ,, ° Jars - ~~ ~ ~~„ ~ ~~t Z P Last Casin - Chec~t~~ ~ '~' ~~ ~'~ ;_ Hydraulic I Date : ~ Type 8 HWDP 248.78 4 27.20' 2.750 4 FH 4 FH 420.891 1 XO Sub 2.00 6.28 2.500 4 FH 4 1/2 IF 172.11 L'a OP Check"` ,: ~ m ~~ ~ ~~` ~ 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF 170.11; rest Date rest Type D.C. 1 NM FLEX 30.87 6 3/4 2.880 4 1/2 IF 4 1/2 IF 139.03 Formations D.C. Sample Top Formation Name MD (ftK6) 1 Stabilizer 5.62 6 3/4 2.810 4 1/2 IF I 4 1/2 IF 108.16. ,Nanushuk Group ~ 1,072.0 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.54; ',.Base Permafrost 1,090.0 & Logging} Nanushuk topset sst. 2,380.0 BAT Torok ~ 2,834.0 1 MWD (Dir 10.00 6.76 4.880 4 1/2 IF 4 1/2 IF 80.12.. 1 Conductor Pipe 00 OftKB `' LOgging} , Csg Run Date OD (In) . Grade Wt (Ibs/ft) TM 1/26/2007 16 H-40 65.00 ob Spud Date Rlg Release Date Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) 'AFE No. Total AFE Amount Total AFE+Sup ; 2/15/2007 04:30 76.70 95.30 18.60 ' AF62035 23,556,979.00 2x,556,979.00 ' : $afe ''r '~ '~ * ~ ~.-. ~'~. ~,'' - l "`" " ""~ ~ _ ' ~°.Tar at De th kKB Tar et Formation Type Date Comment Safety Highlight 3/5/2007 Discuss ice on stairways. Dany cost total Cum Cost To Date ,' ' "" r~: ~ 244,742.80 Dall~`$ummar ~&s, ~'' ~, , n')~ a 1r"~i( '~J ~, ~ ". ° , ,-~~ ,..' ~,~ ~' '".. ,: ~ ".~ _ ~ ''~~- '-., 8,015,712.67 '. , Daily Mud Cost Weather Leasa /Road Conditions Wellbore Condition Over (+) /Under (-)AFE (+/-) Var Days Mud Cum To Date ' -35 W/ Slight Wind Clear of all Snow Good 5 21,921.80 223,349.67 ,`~ Operations @ 06:00 Depth Start (ftK8) Depth End (ftK8) ' ,. DRILL 8 1/2" HOLE /DEPTH 6935' 6,553.0 ~ 6,726.0 °, ~, Depth Progress (ft) Operations This Report Period Drilling Hours (hrs) '% 173.00 Drill F/6553' To 6726' Pump Sweeps As Needed 17.50 , . ~ Operations Next Report Period ~' ° ~~~{ ~ +=` a;~ ~ , .. . ~ Drill to Logging PolntAs/Per Geologists Instructions Da. (ly Foreman"Contact~~ "'„W ~; r: ~ ~~,., ,~ - - ` _ " ~ ~ ~, ~ Job Contact Cell Phone - ° Time L ti .,_ y ~,R , ~' °~-:~ ,~ ..-~~-. :, ~ ~ ~ Start Time Dur (hrs) Ops Cat Scheduled Type Ph M O O ti T bl Depth End (ftK8) RI s: <Contracfor?> <RI No.Z> C 00:00 1.00 Drlg Planned ase Drlg Int 1 ajor p Drilling pera on rou e Drill -Rotary No Trbl 6,570.0 ommehT Rlg Supervisor DRILL 8 1/2" HOLE g b L t Ri M 0 Op o on, up g anager F/ 6553' - 6570' KB .Mud Ptam s: 1:00 1.50 Drig Trbl 3rd Drlg Int 1 Drilling Rig Repair / Rig 6,570.0 GENERATOR No. Pwr (hp) IRod Diameter (in) Party Service Repair WENT DOWN / REGAIN POWER & ;Liner Size (in) Stroke (In) ~ Vol/Stk OR (bbl/s... ' POWER UP ALL E SYST MS ' Pump Checks 02:30 6.00 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 6,633.0 DRILL 8 1/2" HOLE 6' strokes Op F/ 6570' - 6633' KB ' Prea Pal) slow Spd (spm) Eft (% 08:30 3.50 Drlg Trbl 3rd Drlg Int 1 Drilling Rig Repair/ Rig 6 633 0 CIRCULATE & No Party Service I Repair , . REPAIR #2 MUD Shakers:::<Dest:ri tion7> PUMP (REPLACE '.Make Model SWAB) 12:00 0.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary No Trbl 6,637.0 DRILL 8 112" HOLE .Shaker Screens Screen Op F/6633' TO 6637 Deck No. No. scr Sz X In scr Sz Y in) ; :30 0.50 Drlg Planned Drig Int 1 Drilling .Rig Repair/ Rig 6,637.0 CHANGE RUBBER Op Service :Repair GASKET IN 'Shaker Checks HAMMER UNION Dens OF (Ib/gal) ,Dens OF (IWgal Hrs hrs ON STANDPIPE _ 13:00 0.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary Rig 6 638 0 DRILL F/6637 TO Op 'Repair , . Make 6638', PUMP Model SWEEP 13:30 0.50 Drl 9 Planned Drl Int 1 9 Drillin 9 Ri Re air/ Ri 9 P 19 6 638 0 CHANGE POP Centrtfu e/C clone Checks ' , . ,Density overnow pwgaq Overflow Rate (gpm) Op Service. Repair OFF ON PUMP #2 ', 14:00 5.50 Drlg Planned Drlg Int 1 Drilling Drill -Rotary .Rig 6,694.0 DRILL F/ 6638' TO !Dens OF (Ib/gal) Underflaw Rate (gpm) Op Repair 6694' 19:30 0.50 Drag Planned Drlg Int 1 Drilling Rig Repair / Rig 6,694.0 CHANGE SWAB IN 'Hours (nrs) on under Fl (%) ',Dens FD pb/gaq Op , Service :Repair #1 PUMP 20:00 4.00 Drlg Planned Drlg Int 1 Drilling Drill -Rotary Rig 6 726 0 ~- ~ x A Y:i fiSs~aS ~* DRILL F/ 6694' TO Mud Additive Amounts. -" , : , ,'*t. f Op Re air , . PUMP Description 6726' cons... Dally Cos! vendor ~ p , SWEEP AT 6726' MUD LAB i 1.0 45.00 I BA DM 2 0 1 575 00 HALLIBU Mud Checks) 6,641.OftKB' 3/ . 5/2007 12:30 =Tech ~ . , . ... ENERGY Density (Ib/gal) ipN ICEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) ' $erVlCe/L... SERVICES 10.46 9.0 0.200 86.5 ? Vls (s/qt) Filtrate (mU30min) Fllter Cake (/32") Pm (mUmL) .Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) PAC-L 27.0 4,276.80 HALLIBU... - 50 7.6 2 0.400 31,000.000 1.5 50.0 ENERGY PV Over (cp) Gel (10x) (Ibf/100f... Sand (%) MBT (Ib/bbl) ,Lime (Ib/bbl) Oil Water Ratio Mud Vol (Act) (bbl) SERVICES 17.0 11.000 1.5 8.5 1.7/98.3 Baroid 370.0 3,785.10 HALLIBU... -': YP Over (Ibf/10... Gel (10m) (IbfH00... Solids (%) LGS (%) '~~,Polymer (ppm) LCM Mud Vol (Res) (bbl) ~~. ENERGY 21.000 27.000 9.6 5.4 SERVICES Potassium Gal (31 000100... T (fl1 120.0 Chi 32 OOO OOZ HTHP Filt (mU30... AlkalO OOO L) Whole Mud add bbq DRIL-N-S... 3.0 2,324.34 HALLIBU... ; Salt Base ENERGY r SERVICES -. Silicate (%) Electric Slab (V) Comment Set water dilution at 2-3 gal/min. Addition of Baracarb 25 ~ 50 shows up in low LCLAYSEAL 2.0 1,586.26 HALLIBU... grav. solids calculations. Sand content indicates there is a low amount of sand ENERGY in mud. ', SERVICES '" DEXTRID 25.0 1,558.50 HALLIBU... LT ENERGY SERVICES ~x Report Printed: -31612007: rrt;u I~anIG. _ rilrlrav~~.t ftc s~ ~ .. ~ ~h Job Type: Drilling -Original Date: 3/5/2007 Re ort: 46 0 DFS 18:81 , p . , ~: : Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (ft) ' - ""' .Mud Additive Amo P ' ~ ~ ~' unts, r~.:~.,,P;.~ - _ 76.70 95.30 18.60 Description Cons... Dally Cost Vendor Mud Checks:6682:OftKB 3/51200718:00 >:: ' WALL-NUT ~ 43.0 1,130.90 HALLIBU... Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calelum (mg/L) % Water (%) Mud Lost (Hole) (bbl) M ENERGY 10.60 9.5 0.140 85.0 SERVICES Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent OII (%) Mud Lost (Surf) (bbQ, BarO-Tr01 15 0 953 10 HALLIBU ' 55 6.4 2 0.280 31,000.000 ' 1.0 PIUS . . ... ENERGY ' ~~! PV Over (cp) Gel (10s) (Ibf/100t... Sand (%) MBT (Ib/bbl) .Lime (Ib/bbl) OII Water Ratio Mud Vol (Act) (bbl) SERVICES . 23.0 14.000 0.5 10.0 1.2/98.8 1174.0 I YP Over (Ibf/70... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) CON DET 2.0 $67.60 HALLIBt~... ~:', 23.000 42.000 11.6 8.4 ' ENERGY Type Gel (30m) (Ibf/100... T (ft) (°F) Chlorides (mg/L) IHTHP FIIt (mU30... Alkalin (mL/mL) Whole Mud Add (bbQ Potassium 42 000 109 0 33 000 000 ' SERVICES '~ . . , . 0.000 ;Potassium Salt Base 50.0 814.00 HALLIBU... ' Chloride ENERGY Silicate (%) Electric stab (V) Comment SERVICES __ : _ ,. ~: ~~ , _ , Po assium D in Shaker'Data ~~ ~~ ~:,: -- t _ - ~ ~ b 11.0 656.59 HALLIBU... ., , ~ . ., . ._ - = Hydroxide Description Make Model ENERGY SERVICES Shaker Screens Barazan D+ 4.0 634.84 HALLIBU... ' Deck No. screen No. Scr szX (in) 3cr sz Y pn) ENERGY SERVICES .. Shaker Checks Baracafi 25 25.0 487.00 HALLIBU... Dens OF (Ib/gaQ Hrs (hrs ENERGY SERVICES Drill Strln s: BHA#3 Slick ;.. ~ ,,,•, >I. ~' ~' ~~ '~~Aldacide G 2 0 331 66 HALLIBU '. Blt Run Make B it Inventory Bit Type Item Cost ' . . ... ENERGY 3 Hughes 8 U2in, HCM605, 7101484 PDC 22,833.00 I SERVICES ' IADC Blt Dull TFA (Intl Noz) (In') BHA ROP (fUhr) Nozzles (/32") IADC Codes ------ 0.65 31.1 13/13/13/13/13 M-3-2-3 ', Baracor 700 2.0 289.42 HALLIBU... 6,553A~- 6 726A ftKB ` , . ~ ~° ~ : ~~ <,` ~ ; •, ~ ~ ENERGY ` BHA No. 3 Cum Depth (ft) 1,537.00 SPP (psi) 2,950.0 Flow Rate (gpm) TFO Reference Rot HL (10001... 550 210 Max. Hook Load (Ibf) 225 'BarascavD 4.0 255.08 SERVICES HALLIBU... • '' OB (10001bQ Interval ROP (ft/hr) Total ROP (ft/hr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) ENERGY 30 9.9 31.1 17.50 6,500.0 210 10.0 SERVICES ' it RPM (rpm) Motor RPM (rpm) .Cum Drill Time (hrE) Off BoKom Torque Torque Units SO HL (10001bQ 'X-Cede 207 2 0 240 $6 HALLIBU ' 150 49.50 2,000.0 Ftlbs 225 . . ... ENERGY H draulic Calculations ~ SERVICES - ' AV DP (fUmin) AV DC (ft/min) Err ~~, ~,A casing string contains a null value in Depth I Baradefoam 1.0 109.85 HALLIBU... '' HP ENERGY Drill Strin Corn onents ' ~ I , Mtr SERVICES Top Btm ;Bend ~ o ;~ s + , +~° wx Item Density I Drift Conn Sz Conn Sz ' Btm Angle Last CaSltl Ch@Ck : "~'" Jts Description Lan (ft) OD (In (Ibs/ft) ,Grade ID (in) (In) Pn) Top Thrd Pn) Thrd Cum Len (ft) (°) Date ~. Type _ - 192 Drill Pipe 5,972.... 4 14.00,X95 3.340 4 FH 4 FH 6,725.62', 10 HWDP 310.26 4 27.20 2.750 4 FH 4 FH 753.62' ;Last BOP~rCh ~ eck, -=E ,~ :~~ ~ f ~ ~ _; ~~K,, ~M.~ M, .' 1 Drilling 22.47 4 2.000 4 FH 4 FH 443.36 resiDate Teserype Jars - Hydraulic Formations 8 HWDP 248.78 4 27.20 2.750 4 FH 4 FH 420.89: Sample Top 1 XO Sub 2.00 6.28 2.500 4 FH 4 1 /2 IF 172.11 ! Formation Name MD (ftKB) 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF Nanushuk Group 1,072.0 170.111 Base Permafrost 1 090 0 D.C. , . 1 NM FLEX 30 87 6 3/4 2 880 4 1/2 IF 4 1/2 IF Nanushuk topset sst. 2,380.0 139 03! . . . ,, ' Torok 2 834 0 `'' D.C. , , . 1 Stabilizer 5.62 6 3/4 2.810 4 1!2 IF 4 1/2 IF 108.16 Conductor Pie 100.OftK6 -, . ° ` Csg Run Date OD (In) Grade Wt (Ibs/ft) 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.54', 1/26/2007 16 H-40 65 00 8~ Logging) BAT . Surfarse Casln 2`115.4ftKB' -. ~.Csg Run Date ~..OD (In) Grade Wt (Ibslft) 1 MWD (Dir 10.00 6.76 4.880 4 1/2 IF 4 1/2 IF 80.12', ' 2/16/2007 9 5/8 L-80 40.00 & Lo In 99~ 9) ;;., ;~ 4 ~Gemeri a TM ~ .2~ Cmnt Des Comment 1 MWD (Dir 9.21 6.79 4.560 4 1/2 IF 4 1/2 IF 70.12' & Logging) PM3 1 MWD (Dir 29.73 6.73 4.630 4 1/2 IF ' 4 1/2 IF 60.91'. ', & Logging) ~ NUKE ~ S~iv 2/15!2007 04:30 76.70 ~ 95.30 ~ 18.60 AF620_35 -~-~- w ._ ~. , ~c5' :.:.y '~ -s'w. btia e.~-~~' as,.. - r ~, {~. , Target Depth ( ,~ .... , Tvoe Date- Comment. ~. - - Dally:;;ummarY ' .~ .~,.'. ~ ;~:. ~~ _~,. ~ ~~~~~~u.. ~~ N~ _ ~, ..w f c--- ___ Weather ~ ~ lease I Road Conditions ~ Wellbore Condition pY~~ i• I r ~ 232,184.06 9,612,163.73 er (+) I Under (-) AFE (H) Var Days , Daity Mud Cost Mud Cum To Dale -20 W/Slight Wind Clear of all Snow Good 5 9,363.06 232,712.73 _ -._.... ...__ ....__ ____--- --..._ _..._- _ ..--- .........- ....--- ....... - ...._. . Depth Start (ttK8) Depth End (ftK6) - Operadons @ 08:00 ' WIPER TRIP /DEPTH 7400' KB 6,726.0 7,400.0 -_. ......... _.._. ....... __... ._....._ _. _. .. ..__._..-._ ..__ -Depth Progress (k) Drilling Hours (hrs) Operations This Report Period Drill F/6726' To 7400'. Well Took A 10 BBL drink At 7400'. (~74 00 ~ 20 00 Operations Next Report Period `° Short Tri POOH La Down BHA Lo ~ Daliy Fprernan Confact " . `"~. ;, P Y g nta Cell Phone o o ct TIme~LO 3,~~ -sF ~,q. ,,,,`?~ k'a~^~, _.. ~'~ ~;,~tta,~fr~..2A=~:~u,.~a r ~~`~t'' I.. ..9 ... .. F~ . a . ~~~ r, , ~ .' .~ ._ ~,~~,~ ~ ~ :w. '~ start Dur ops scheduled Depth End Rigs; Doyon, Arctic;WDlf, 00:00 18 00 D lat Planned Drl Ints1 Dr ilin~ Drill Rotan NorTrbl 7 379.0 DRILL 8 1/2" HOLE 'Rig supervisor 9 9 9 rY ~ I Bob Lupton, Rig Manager pp ~ ' F/ 6726' KB to 7379 I KB. 4950 Units Of fMuti Pumps: 1,Gardner-Denver, PZ-9 No Pwr (hp) Rod Diameter (In) I I ~ i ~- ----- 18:00.. 1.00 Drig Planned Drlg Int 1 Drilling Circ &Cond No Trbl 7,379.0 Caculate At 7379' user size pn) - str000i0 I voustk of (iieus... , {; Op Mud KB As/Per 5 112 9.02 0.066 __ _ _ 'Geologists pump Checks Instructions. strokes ' 19:00 0.50 Drlg I, Trbl Drlg Int 1 Drilling I, Rig Repair / .Rig 7,379.0 Change Discharge ~ Fres (psi) _siow spa (slNr?) - Err (%) Well Service Repair Valve And Seat On 610.0' -Yes I 55 95~ Pump #1 I 3,400.0 No 90 95 - - ,Mud Ptimps 2, Gardner Denver, PZ-9, , I: 19:30 1.50 Drlg Planned Drlg lnt 1 Drilling Drill -Rotary No Trbl 7,393 0 Dnll F/7379' t0 No Pwr (hp) Rod Diameter (in) Op 7393 2 ~ 1 000.0 21:00 0.50 Drlg i Planned Drlg lnt 1 Dulling Circ &Cond No Trbl 7,393.0 Circulate And Work user size pn) istroke pn) voUSlk OR (bt>I/s... Op Mud Pipe At 7393' 5 112 L 9_02 0.066 As/Per Geoligist Instructions. Pum Checks __ . 21:30 0.50 Drlg Planned Drlg Int 1 ` Dnlling ,Drill -Rotary No Trbl 7,400.0 Drill F/ 7393' To Pres (psi) slowspd (spm) Err(%) ) f - 7400'. Well Took A 630.0 Yes stroke 55 ~ 95 . '' Op -10 BBL Dunk At 3,400.0 No I 90 95 z 7400' Shakers: <Descriptian?> 22:00 1.00 Drig Planned Drlg Int 1 ^Drilling Circ &Cond No Trbl 7,400.0 Circulate And Work ,Make Model I. SOP Mud Pipe As/Per __ - ____ _ - -_ -~. l Geologists 'Shaker Screens _,T ~ IrIStrUC(IOr1S ( 'Screen -.. ~;,. I Deck No. No. Scr Sz X (In) Scr Sz Y (in) 23:00 1.00 Drig Planned Drlg Int 1 Drilling .Circ &Cond No Trbl 7,400.0' Pump Sweep. pp Mud Around. ~_-~ -~-- Shaker Che s _ _ _ Hrs (hrs) _ Dens OF (Ib/gal) Dens OF (Iblgal) Mud Checks: 7,400.OftKB, 31612007 23:30 ~~ ` `~ ~-- '~ ~, ~ _.___ _ Ck -_.._ _ _ - --- ';~ Density (Iblgal) pH CEC for Cuttings Pf (mUmL) ~ Calcium (mglL) % Water (%) Mud Lost (Hole) (bbl) T I ~ ,~ 10.50 9.0 0.140 _ 84.0 Vis (s/qt) Filtrate (mt130minj Filter Cake (l32") Pm (mUmL) Potassium (mgll) Percent Oil (%) Mud Lost (Surf) (bbl) Make Model I ' 66 7.6 2 0.140 33,000.000 3.0 i. PV Over (cp) Gel (1 Os) (Ibf/100f... Sand (%) MBT (Ib/bbQ Lime (Ib/bbq Oil Water Ratio Mud Vol (Act) (bbl) Centrifuge/C11CIOne Ch@CkS __ :, 18.000 0.5 11.0 3.4/96 6 1079.9 ;Density overflow (IMgaq Overflow Rate (gpmi iYP Over (Ibf/10... Gel (10m) (IbfH00... Solids (Yo) LGS (%) Polymer (ppm) LCM Mud Vol-(Res) (bbl) _ 40.000 10.6 7.0 _,'~Dens OF (Iblgal) Underflow Rate (gpm) Type Gel (30m) (Ibf1700... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mV30... Alkalin (mUmL) Whole Mud Add (bbl) Polymer 44.000 116.0 33,000.000 - ~HOUrs Ihrs) --7011 Under FI (%) Dens FD (Iblgal) HG 1 1 r _~ Shaker Checks Dens OF (Iblgal) Derrck ----- 2 3 4 'Model ,MUD LAB 1.OI 45.00 Derrick _ _ IAldacideG 2.0 ;331.86 HALLIBU... ~ ENERGY ___ ___SerszY(In) ~ - - --- _ __ SERVICES _ 200.000 Baracor 700 2.0 289.42 HALLIBU... 200.000 ENERGY 200.000 ' SERVICES 200.000 Bai-adefoam 2.0 219:70 HALLIBU... Hrs (hrs) HP ENERGY V SER ICES 76.70 95.30 18.60 Description' Cons... Dally Cost Vendor i `DryingShakertUata ,~ ;.~~~~..,~ ..cz+~ .~~~~~~,_< "~`~.,~,~F.~r•~,~ ° "+im;~#N ~k, ~..~' .rya. ..,. A<s,"~~BA. DM 2.0 1,575.00 HALLIBU... Descripdon Make Model Tech ENERGY 4 HG Dryer Derrick Derrick Service/L... SERVICES -° Shaker Screens f Barascav D 4.0 255.08 HALLIBU... ' - Deck No. Screen No. Ser Sz X (in)_ __ Ser Sz Y (in) ___ ENERGY ---_ -._. _.-..__- _ _ ~ - - --- --_ ------- 1 --------- 200.000 - - ---------- -~ 5ERVICES 1 3 200.000 THERMA-... 4.0 249.88 HALLIBU... 1 4 200.000 ENERGY - --- - - -- __ ._.------- SERVICES -_. _ ..- -Shaker Checks -- ~Barathin 4.0 204.24 HALLIBU... , Dena uF (Ib/gaq Hrs (hrs) ENERGY Description -------- --~-~----~-- Make I Model ~ SERVICES HG Dryer _ _ Derrick Derrick I Barazan D+ 6.0 952.26 HALLIBU... Shaker Screens ENERGY - Deck No. Screen No. - Scr SzX (in) ~ Scr SzY (In) SERVICES i- 1 1 200.000 i Potassium 6.0 358.14 HALLIBU... 1 2 200.000 Hydroxide ENERGY 1 3 200.000 SERVICES '` j~ 1 __ 4 ___ 200.0_00 PAC-L 10.0 1,584.00 HALLIBU.... Shaker Checks ' ENERGY i Dens OF (Ib/gaq Hrs (hrs) SERVICES --- _ ~ ~ ~k ~DEXTRID 10.0 623.40 HALLIBU... Drill Strin s: BHA #3, SIIck =~ ~ ~, ~ ~-~ ~~ . . „ ~ • r r` ~ ' ~ ~'". ~ _,`, ~~ '' ~~~. Bit Run Make Bit Inventory Bll Type ~ Kem Cost " ' LT SERVICES '' 3Hughes 8 1/tin, HCM605, _7101484 _ PDC _ _ 22,833.00 ~ rIADC Bit Dull ~ TFA (Intl Noz) (In') BHA ROP (fUhr) Nozzles (132°> ~ IADC Codes '. Baro-Trot 10.0 635.40 HALLIBU... - 1 1-NO-A-X-O-NO-LOG, 0.65 i 31 8 13/13/13/13/13 I M 3-2 3 '.Plus ENERGY ..6,726.0 - 7,400.0 ftKB - ~ j ~ ~ - SERVICES " BHA No. ICum Depth (K) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) iBaracarb 50 25.0. 470.50 HALLIBU... _ 3 2,211.00 3,400.0 500 216 225 ENERGY OB (t0001bf) :Interval ROP (ft/hr) Total ROP (K/hr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over•Puli (Ibf) ; SERVICES ~~ "~ 30 I 33.7 31.8 20.00 6,500.0 220 15.0 __Jlpotassium 25.0 407.00 HALLIBU... -- --1- - - -- --- -- , Bit RPM (rpm) Motor RPM (rpm) ..Cum Drill Time (hrs) Olf BoKam Torque Torque Units 30 HL (10001bf) 150 69.50 2,000.0 ~ Ftlbs 230 Chloride ENERGY _.. ----- - - - -- -------- SERVICES Hydraulic Calculations - _ _ AV DP (ft/min) AV DC (mmin) Err `Baracarb 25 25.0 487.00. HALLIBU... A casing component contains a null value in ID ~ ENERGY -Drill String Components SERVICES ' Mtr ° Baroid 66.0 675.18 HALLIBU... I Top Btm Bend ENERGY ~' Item Density Drift Conn Sz ' Conn Sz Btm Angle SERVICES Jts Description '. Len (K) OD (in) ', (Ibs/ft) ; Grade ID (fn) - (In} (in) ITOp Thrd (in) Thrd .Cum Len (K} : P1 214~Drill Pipe ~ 6,646....1 4 14.00 X95 13.3401 4FH j 41FH ~ 7,400.001 ~~F~^~ ay ~q' r 10 H1NDP 310.26 4 27.20 2.750 4 FH 4 FH 753.62 ~st Gasmg Check '' , ;~~~~ ' ~ _ ,~;t ~~~` :: 1 Drilling 22.47 4 - ~ 2.000 _ -4 FH ~ 4 FH __ _. - -443.36 - ~ Date Type Jars - _ Hydraulic ~ Last BQ<i Check„j~4 ~, ~ ~`;,_,;; ,._ _ . ~" ~' ~~ Test Date Test T pe , Y -----_._____. _. .-_....._I. _-.....__ - ._-._._~ 8 HWDP 248.78 4; 27.20 2.750 4 FH 4 FH 420.89 1 IXO Sub I 2.001 6.281. ; 2.5001 _ 41FH _ 1...4 1/2IF _ 172.111_- Formations 1 NM FLEX 31.08 6.68 .2.880 41/2'IF 4 1/2 IF 170.11' Sample Top D,C, Formation Name MD (KKB) 1 NM FLEX 30.87 6 3141 12.880 4 1/2IIF 4 1/2lIF I 139.031 Nanushuk Group 1,072.0 Base Permafrost 1,090.0 D.C. 1 Stab111zer 5.62 6 3/4 2.810 4 1/2, IF 4 112 IF 108.16 Nanushuk topset sst. 2,380.0 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 1/2 IF 102.54 Torok 2,834.0 & Logging) I HRZ 7,233.0 BAT Kuparuk Sandstone Mbr 7,385.0 ' 1 MWD (Dir 10.00 6.76' 4.880 4 1/2' IF 4 1/2 IF 80.12; Upper Kingak (Mtluveach) 7,406.0 . & Logging) ConductorPipe, 100 OftifB ', TM Csg Run Date OD (In) Grade Wt (Ibs/ft) 1 MWD (Dir 9.21 6.79 4.560 4 1/2 IF 4 1/2 IF 70.12 1/26/2007 16 H-40 65.00 ~'„ PM3gging) ~ CSurface Casing, 2,1,15.4ftKB:~ Csg Run Date OD (In) Grade Wt (IbsIK) 2/16/2007 9 5/8 L 80 40 00 1 & OD Dir 29.73 6.73! - 4.630 4 1/2',1F 4 1/2 1F 60.91,:. Cgment ~~ ~~~~~r'~~~~~~,,," ~`,"~~~'~,~~. I, Cmnt Des Comment .... NUKE ---_ ___ __ ;' X _= ~" _';:-. ~:~s Report Printed:: 3112/2007. _._I 9 ~ ~ V fm Q O ~ ~ N O CO ~ ~ I ~ ~ j M M r E 0 v ~a °0 m ~ u- ~ ~ M ~ N ~~ ~ r N r N r ~ m c ~- V ~ 7 O) U _ -_ _ I ~ -y ~ m F.lL LL ~ ~ N N N ~ ~ ~ r COI ~ I ~c O - ~ ~ _-._ _.. N m a C7 ~ j ~~ ~ N ma ~ O .r i ~n ~ - ~ O O O O i ~ O N ~ N N C a J O £ . O V ~ ~ O u ~ C . E~ .~ ~L . >.. m ym'J ~ ~ ~lL 'i ~ °~atluW.. m 3 ~ ~ _ . ' ' 1 . _.:_ __ _ ;_ { i i L '..O O .O O :~ V ~ ~ . O', O O!O iO '`1 OD ~! O ':~0 O O ~O ~ h V O W -N ~ j I OOOIOM MM ~: ' N -O O O!.O ~ V ~ O- m j T d -O -O O ~O ~ c0 M ! 'Y M N W O p 7 i 0 - CO CO 1~ t~ 111 N t ~ : . > ~F J ' ' O N 1~ ' = I O ~ , . 7 M h N Z~ ~ '. M T O OD I [¢ _~ ~ ~ '. ~. ~ I 0 , N p ~ '' ~ N 1` M '~ O CO ~ - ' 3 N ,p O ~ ~ O. N OI pi5 L N p~ -N V O '. , d ' p N .-- N 1~. im V ~ m r -M N O S i O m o i ~'p f~ 6) O N N!f IO O ~ ti.. • 2/15/2007 04:30 -25 W/ 20 MPH Winds ~ Clear of all Snow HOIST TO LOG Operations Thls Report Period Short Trip F/ 7400' to Shoe, RIH to 7400', Operatlons Next Report Period POOH to Surtace, Rig Up And Log. 18.60 AF62035 ~ 23,556,979.00( 23,556,979.00 Dally Cost Total ~ g t a 236,430.: AFE ~(H) Var Days Dally Mud Cost g 13,609.2 -~"~ ~~~" - _'~ 'Depth Start (ttK6) 7,400.0 (Depth Progress (t 0.00 ~ ~ ( ups scneoweo Cat Type Phase MaJor Op - Operation Trouble Depth End (ttK6) 's; poyon, Arctic_ W Comment g 00:00 1 00 Drig Planned Drl Int 1 Drillin I g ~ 9 Circ &Cond ,No Trbl ~ 7,400.0 Bo supervisor CIRCULATE OUT b Lupton Rig Manag Op ~ I Mud , SWEEP/PUMP Mud Purnps: 7, Gardrn i` 01:00. 3.50 Drlg Planned Drlg Int 1 Drilling Short Trip No Trbl 7,400.0 PILL /BLOW DOWN LINES No. 1 ~1h000.0 WIPER TRIP / `user size (In) Stroke (In) Op TIGHT SPOTS @ 5 1/2 9.02 __ _. 6960',.6643', 5680' pump Checks .. 04:30 6.50 drlg Planned Drig Int 1 1 Drilling Short Trip fVo Trbl i 7,400.0 BACK REAM F/ 1 O I Pr I 81 S a P ~ 5680 - 4625 W/ __BS (p$) ...,_, °NC.._n ~ i PUMP 610.0( Yes ~ 3 400.0 No 11:00. 0.50 Drlg Planned Drig Int 1 Drilling Circ &Cond No Trbl 7,400.0 PUMP NUT PLUG _ . ~ u. Op Mud SWEEP Mud Pumps: 2, C 9,848,593.98 Cum To Date 246,321.98 h End (ttK8) 7,400.0 ceu 0.066 s Frf !a/ 1 90 ~ - No. Pwr (hp) Rod Diameter j; 11:30 3.50 Drlg Planned Drlg Int 1 ~ Drilling Short Trip No Trbl 2,000.0 WIPER TRIP TO OP 2115' (9 5/8" 2 1,000.0 SHOE) /SLOW diner size (In) Stroke pn- vousdc oR (w HOIST TO AVOID - 5 1i2 9.02 0.066 i SWABBING Pump Checks i St ke 15:00 1.50 Drl 9 __9.. _ _9 _ _-- Planned Drl Int 1 Drillin Other - - - - - - __ (P ro s No Trbl 2,000.0 SLIP AND CUT Pres sp SiowSpd (spm) Ett(~) OP DRILLING LINE, 630.0 Yes 55 9`. CLEAN FLOOR, 3,400.0 No 90 9: ' HOLD PRE/JOB Shakers: <Description?> I I- ,, SAFETY Make MEETING. Model 16:30 0.50 Drlg Planned ~Drlg Int 1 (Drilling Rig Repair/ No Trbl 2,000.0 SERVICE RIG Shaker Screens OP $efVlCe Screen ,, ;.;;17:00 3.50. Drig Planned Drlg Int 1 Drilling Trip In Deck No. No. Scr Sz X (In) Scr Sz Y (In) No Trbl 6,668.0 RIH to 6668', NO ~ I OP _ -."".___ -- _ HOLE PROBLEMS - Shaker Checks 20:30 2.00 Drlg Planned ' Drig Int 1 Drilling Ream & Wash ' No Trbl 6,785.0 WASH AND REAM, ~ Dens OF (Iblgal) 'Dens OF (Iblgal) -Hrs (hrs) ~ OP _ TIGHT AT 6668', T 6732 AND 6785'. '.22:30 0.50; Drlg Planned Drig Int 1 brilling Trip In No Trbl 7,400.0 RIH to 7400' Make Model Op ~~' 23:00 1.00 Drig Planned Drtg Int 1 Drilling Circ &Cond No Trbl ' 7,400.0 TAG BOTTOM Centrifuge/Cyclone Checks - i Op Mud WITH NO FILL, 'Density Overflow (Ib/gaq Overflow Rate (gpm) BREAK ---- - Dena OF (IWgalj CIRCULATION Underflow Rate (gpm) SLOWLY, THEN ~'. _ BRING UP PUMPS 'r,AOUrs (hrs) Oil Under FI (k) Dens FD (Iblgal) i SLOWLY, PUMP ~ i SWEEP AND MUi1,~A,dditlYe Artlourits~~+~ ~~~ .,~ ~~ ~ CONTINUE TO Descri y ptlon Cons . Dail Cost Ventlor ~` ~~, CIRCULATE TILL MUD LAB ~ 1.0~ 45.00 I; HOLE IS CLEAN. Aldacide G 4.0 663.72 HALLIBU... ~ ENERGY ~ --- ---- -----~ 1 ---- - SERVICES ,. - 76 70 l 95.30 ~ 18 60 ~ nescripdon _ r.COns Dany cost ~ ~ vendor _ "_ r' ` ~ '. " ~ ~ ~ ~ ~ ~ GON DET 1.0 433.80 HALLIBU... Mud Checks: 7;400:OftKB 3/712007 23.30: ~ ~., ~~., _,~~ a-~ ~~ .~~.~A _~ , `Density (Iblgap pH CEC (or Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Haej (bbq ' ENERGY 10.5.0_ 8.7 __ _ 0.200__ _ _ 84.0 _ SERVICES Yis (s/qt) Filtrate (mU30min) Filter Cake (!32") Pm (mL/mL) Potassium (mglL) Percent Otl (%) Mud lost (Surf) (bbl) (Barazan D+ 2.0 317.42 HALLIBU... 56 5.0 1 ___ __ 0.100 27,999.999__ 3.0 PV Ovor (cp) Gel (10s) (IbH100f... Sand (%) MBT (Iblbbl~ ~ Lime (Iblbbl~ 011 Water Ratio Mud Vol (Act) (bbl) i ENERGY 5.000 0.6 _ 9.5 _ _ 3.4.196_.6 1040.9 SERVICES -"---- -:BA. DM 2.0 1,575.00 HALLIBU... YP Over (Ibf/10 .. Gel (10m) (Ibf/700... Solids (%) LGS (%} Polymer (ppm) LCM Mud Vol (Res) (bbl) 17 000 10 7 _ _ 7.1 ~ .Tech ENERGY Type Gel (30m) (Ibf1100... T (fl) (°F) - Chlorides (mg/L) HTHP Fllt (mU30... Alkalin (mUmL) (Whole Mud Add (bbl) _ S2rVICe/L... SERVICES Polymer 21.000 98 0 32,000.002 sincere(%j Electric stab --------- - ------ - -"- - ,BarascavD 4.0 255.08HALLIBU... (V) Comment ENERGY SERVICES Mud Checks; 7,400.OftKB, 3'1812007 14:30 ~ Baracor 700 4.0 578.84 HALLIBU... '. Density (Iblgal) pH CEC for Cuttings Pf (mUmL) ~ Calcium (mg/L) ~ % Water (%) Mud Lost (Hole) (bbl) ENERGY 10.55 8.0 0.020__ 84.0 SERVICES ~Vis (slgt) Filtrate (mU30min) Filter Cake Q32") Pm (mUmL- Potassium (mglL) Percent OII (%) Mud lost (Surf) {bbl) 59 __ 7.0 2 __ 0.000_____ 28,999.99_9__ 3.0 PAC-L 12.0' 1,900.80 HALLIBU... PV Over (cp) Gsl (10s) (Ibtlt00f.. Sand (%) MBT (Ib/bbl) Lime (]blbbQ OII Water Ratio Mud vol (Aci) (bbl) ENERGY ~~ 12.000 0.0 9.0 3.4!96.6 ~ SERVICES '; YP-over (tbfi~o.:: c~i ~iomj penioo .~ souas 1~) - t_GS (%- - Polymer (ppm) _ LcM --- Mud vol (Res) (bbl) WALL-NUT 12.0 315.60 HALLIBU... __ 35.000 10.8 __ 6.8 M ENERGY -Type Gel (30m) (Ibfl100... T (fl) (°F) Chlorides (mglL) HTHP Flit (mL/30... Alkalin (mUmL) Whole Mud Add (bbl) SERVICES Polymer 36.000 29,_999.999 21.0 _~ _„_ _. (V) common{ - -- _--- -- -- -~" -- --" Potassium 12.0 716.28 HALLIBU... Silicate (%) Electric Stab Hydroxide ENERGY ~Mud'Checks: 7;400.11ftKB, 3/8I2007~22:00~"` `"~ ~ ~ ' ~ ?~ '' ` ~` ~~~ SERVICES _ ~ ~ ,~ ~ ,y ~ ... ~ ,7~ ~ ~.... Density (Iblgal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) N. Water (%) fdud Lost (Haej {bblj 111 DEXTRID 18.0 1,122.12 HALLIBU... 10.70 8.5 _ 0.070 83.0 LT ENERGY l' Vis (slgt) Fiitrate (mU30min) Filter Cake (132") Pm (mUmL) Potassium (mg/L) Percent Oil (•ti) Mud Lost (Surf) (bbl) , SERVICES 51 8.0 2 0.000 26,000.001 3.0 --------- --- - - {Baranex 24.0 1,857.36 HALLIBU... PV over (cp) - Gel (ills) (Ibf/10oL . sand (tip ---~ MB7 (Ib/btip -- Lime (ib/bW) ou water Ratio Mud Vol (Act) (bbl) ENERGY 13.0_00 _ 0.0 _ 8.9 3.5/96. 1034.3 --- Over (Ibt710... Gel (10m) (Ibfl100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bW~; SERVICES 37.000 12.0 8.0 _ Baro-Trol 42.0 2,668.68~HALLIBU... Type Gol (30m) (Ibf/100 . T (fl) (°F) Chlorides (mglL) HTHP Fllt (mU30... Alkalin (mL/mL) Whole Mud Add (bbi) PIUS ENERGY Polymer 39 000 27,000.001 ~ SERVICES Silicate (%j Electric Stab (v) comment __ Potassium ' 60.0 976.80 HALLIBU... Chloride ENERGY D m Shaker Data x;~: '°~`~'`* '~ ~ ~ * ' ~~ .~ ¢ ~ '' '" "* ~ ~ ,. t ry. 9 .. .: ,~..,~~..~a. q,, ..._~~ ... „fi~~M1.r~..,..~ r,~„a. ~..~ ... SERVICES . Description Make Model A .~ HG Dryer !Dernck (Derrick _ -._- Last Casing Check i - ;: , Shaker Screens _._ Dace Type - -- ~ Deck No. Sereen No. -, Scr_Sz X (in) _^_ _ _ .".,_,,,_._"_S__cr Sz_Y_(in) _ - - - -- 1 1 200.000 ~. a ~ 1 2 200.000 L~as'~'BOP Check ;,; °~ ~~~~~ " _. Test Date ~ Test Type 1 3 200.000 =- 1 4 200.000 'Formations ~ 'Shaker Checks ~ sample Top Dens OF (Ib/gaq Hrs (hrs) Formation Name MD (ftK6) Nanushuk Group 1,072.0 ~: Descriptlon Make Model ..Base Permafrost 1,090.0 HG Dryer _ _ Derlck Derrick I Nanushuk topset sst. 2,380.0 Shaker Screens .Torok 2,834.0 Deck No. Screen No. Scr Sz X (in) Scr Sz Y pn) HRZ 7,233.0 1 1 200.000 Kuparuk Sandstone Mbr 7,385.0 1 2 200.000 Upper Kingak (Miluveach) 7,406.0_ 1 3 200.000 Conductor Pipe, 100.OftKB . 1 4 200.000 ` .-_- __._ .._...__ _-._____ __ ".___ Csg Run Date OD (In) Grade Wt (Ibslfl)~~~ - ' Shaker Checks ' 1/26/2007 16 H-40 65.00 - -- _ (Surface Casing, 2;715.4ftK6 Dens OF (Ib/gaq Hrs (hra) Csg Run Date OD (in) Grade Wt (Ibs/R) ----- - `nescription - " -Make, - - - -Model "_" 2!16/2007 9 5/8 L-80 40.00 HG Dryer ~errick _..--- - _ --- ShakerScreens Deck No. Screen No. Scr Sz X (in) 1 1 1 2 1 3 1 4 _ _ Dernck Scr Sz Y (in) 200.000 200.000 200.000 200.000 76.70 95.30 18.60 Shaker Checks Dens OF (Iblgaq Hrs (hrs) . ~ ~ ,; ~ - Drill Strings: _BHA #3, Slick ~? ,. , Y.-, .N: ~;: ~ E~ ,~ ,. Bit Run Make Bit Inventory Bit Type kem Cost 3 Hughes 81/21n HCM605 7101484 PDC _ 1 22,.833.00 (ADC B1t Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles (132") (ADC Codes 1-1-NO-A-X-O-NO-LOG( 0.65 31 8 [ 13/13113/13113 ~ M 3-2 3 -: z. ~. `7,400.0 -..7;400.0 ftKB __ '' -BHA No. Cum Depth (tt) SPP (psq Fiow Rate {gpm) TFO Reference Rot NL (10001... Max. Hook Load (Ibf) 3 I 2,211.00 3,400.0 500 216 225 WOBWOB (10001b1) i,Interval ROP (Whr) Total ROP (fVhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) 20 I 31.8 0.00 6,500.0 220 20.0 Bit RPM (rpm) (Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) 150 _ 69.50 2,000.0 Ftlbs _ 230_ Hydraulic Calculations ~~ AV OP (ft/min) AV DC (fUmin) Err __ ., ___ __ ! _ A casing component contains a null value in ID Drill String Components :. Mtc. .Top Btm Bend Stem Density Drift Conn Sz Conn Sz Btm Angle. -Jts Description Len{ft) OD(In), (Ibsltt) Grade (D(in) (in)s (ln) ;Top Thrd tIN Thrd Cum Len(tt) ':.t°) 2141 Drill Pipe 6,646.... ~ 4I 14.00 X95 3.3401 4I FH 4 FH ~ 7,400.00 10 HWDP 310.26 4 27.20 2:750 4 FH 4 FH 753.62 1 Drilling 22.47 4 ' 12.000 4 FH 4 FH 443.36 Jars - Hydraulic 8 HWDP- 248.78 4 27.20 12.750 _ 4 FH 4 FH 420.89 1IXOSub ~ 2.001 6.28 X2.5001 ~ 4FH 41/2~IF I 172.111 , 1 NM FLEX 31.08 6.68 2.880 4 112 IF 4 112 IF 170.11 D.C. 1 NM FLEX 30.87 6 3/4 i~ 2.880 4 112 IF 4 1/2IF 139.03 D.C. __ _ . _. __ __ .___: 1 Stabilizer 5.62 6 3/4 2.810 4 1/2 IF 4 1/2 IF 108.16: 1 MV1ID (Dir 22.42 6.71 - -- - -4.630 - -4 112 IF 4 1%2' IF -- -~ 102.54 & Logging} 1 I ~ I BAT I 1 MWD (Dir 10.00 6.76 4.880 4 112 IF 4 1/2 IF 80.12 & Logging} _ TM 1 MWD (Dir 9.21 6.79 ' 4.560 4 112 IF L 4 1/2 IF 70.12 & Logging} L PM3 1 MWD (Dir 29.73 6.73 4.630 4 1/2 IF 4 1/2 IF 60.91 & Logging} NUKE 1 MWD (Dir 27.96 6.76 ~4.630~ ~ 4 1/2 IF 4 1/2TIF ~ 31,18 & Logging) FE i ±- 1 Bit Sub 2.22 6.51 2.750 4 1/2 IF 4 1/2 Reg 3.22 w/Float 6.51 4 112 Reg 4 1 /2 Reg 1.00 w .ar '~ .p.a "` ~ k f f ~ dr- ~a~.='=. ,^~ : ~ ~.~ x _,~, ,ca,"~s(.... ;~~s~ ~53~" .,n. 3~-k . t ..) t,r~. .~„Y~rS. ; °) ~' , iWellbOres ~~ , ~.,*a r o- ~ .~,.. ~ ~ ~ ~ r~x .. ~~( 3 .eN ,, ~;, ,..~,. _ "-3 'Wellbore Name ~ VS Dir (°)~ Kick Off Depth (ttKB) _ _ ORIGINAL HOLE ~ 0.00 Directional Suroe s _ 'Date--_~__._______ - ~.~~ Descrlptlon -: 2/28/2007 MWD surveys -- 2/15/2007 04:30 76.70 95.30 18.60 ~~ AF62035 I23,556,979.00~ 23 ssss~g.oo safety' .',' z'~ ~ ~. ~,`~ 1a`.a~,.~ a, ,..~"~r~: ~~~2 +§ } s ~ £.£b~. ~ : ~ .,w , a ~'a .~. 7 'r.~ ~s ~ ~'~v Target Depth (kKe) _. Target Formation _ - YP .. ent T e Data Comm s -Daily Summary ~ ~~ : ~~ ~ `~'~ ~ F ~ ~ ~_ 227,680.51 `~~ ~,~ ~ 10,076,274_49 ; Weather r .~ w . ' `~ ~ " ' Lease I Road Conditions , „ ~~.,. Wellbore Condition , ~ ~'" Over (+)1 Under (-) AFE (+/ - Var Days '~' Daily Mud Cost - Mud Cum To Date -20 W/Slight Wind Clear of all Snow ~ Good 6 ~ 4,859.51 251,181.49 - Operatlons@ 08:00 _ ____ _____ _ ...___ -..- ....._....__..__ _ _- -__ _ _.-. _.....- ---;Depth Start (ftK8) Depth End (ftK6) Core wlAtlas E-Line Logs _ 7,400.0 7,400.0_ --- ~~ ;Operations ThIS Report Period ....... .... _ _-. ..-- ........ ....-..._ ................ __..__ _.___. .--....... .-......Depth Progress (ft) Drilling Hours (hrs) POOH, Dump MWD Data Then Rack Back in Derrick, Rig Up and Run Baker Atlis E-Line Log. 0.00 Operations Nezt Report Period - ~ , ~`. 1 ' ' Flmsh E-line Logs, Test all BOPE M/U BHA #4 RIH ~ Dai(y Fireman Contact ~ ' " 'x~. , . ', - - ~---- -- i i Time Log ~, .... ~ ~: Y,.. ~...~, r~ r K .~ ..s~ .~~ ~ ~~~ ~~ ~.f ~ f_ ._ ,. ,-- ~-•y- ~ s ~ ~ ~,, ..~: ,;> ~-.~;, ~.~ k,-,~. z ~~~.~.'~ u -~ -.. Job Contact Cell Phone _. - Start Dur Ops Scheduled Depth End Rigs; Doyon Arctic Wolf ' ' : Time (hrs) Cat Type Phase Major Op OperaOon - Trouble (kKB) Comment , , RlgSupervisor 00:00 1.50 Drlg !Planned Drlg Int 1 (Drilling Circ &Cond No Trbl 7,400.0 CIRCULATE gob Lupton, Rig Manager Op Mud SWEEP /PUMP II PILL & BLOW MUD I Mud Pum st 1, Gardner-Denver,P2-9 P LINES W/AIR No. 1 Pwr (hp) Rod Diameter (in) 1,000.0 01:30 5.50: Drlg Planned Drig Int 1 :Cond Trip Out No Trbl 7,400.0 HOIST TO LOG / Liner Size (In) - Stroke (In) VoUStk OR (bbl/s..~ Op Trip .MAX OVERPULL 5 1/2 ~ 9.02 0 066 7K @ 6960' KB --- __ (WIPE CLEAR) pump Checks 07:00 0.50 Drlg Planned Drlg Int 1 i Cond Rig Repair / No Trbl 7,400.0 RIG SERVICE ! Strokes ~ Pres (psi) .Slow Spd (spm) ER (%) _ - Op Trip Service FLOW CHECK @ b15 O .Yes ~ 551 95 ( SHOE 3,400.0 No 90 95 U/::iU z.SV Urlg h'lannea Urlg Int 1 C:ono Inp Vut NO Irbl 7,4UU.U HVIS1 IC Op :Trip LAY DOV1 - _ --- 10:00 6.50 Drlg Planned IDrlg Int 1 (Cond (Handle Tools No Trbl ~ 7,400.0lLAYbOV1 ~,Op (Trip ~ ITOOLS& 8.9 NNLOAD DATA -------_ _~ -- ------1-- - -- UPAND RUN Pump Checks :ER ATLAS Strokes Pres (psg Slow Spd (spm) Ek (%) INE LOGS. RIH 535.0( Yes 55 95 7396' (4 feet of 3,400.0 No 90 95 "UT CORES, JH W/ E LINE Shakers: <Desc~iption?> . - , Make Model ~S TO 4NGE CORE --- ---- ShakerScreens Scraen _- . Deck No. No. Scr Sz X (In) Scr Sz Y (in) 11.20 8.5 Vis (s/qt) Filtrate (mU30min) Filter Cake 51 8.0 2 PV Over-(cp) Gel (10s) (Ibd100f Sand (% ) 14.0 13 000 0.0 YP Over (Ibf/10... Gel (tOm) (Ibf/100... Solids(% ) 15.000 37.000 Type Gol (30m) (Ibf/100... T {fl) (°F) Polymer 39.000 HG Dryer Shaker Screens Deck No. HG 8.0 83.0 N JARS. No. Pwr (hp) Rod Diameter 2 1,000.0_ N LWD Liner Size (In) Stroke (in) VollStk OR (b 5 1 /2 ~ 9.02 i 0.066 Dens of (Ib/gal- I Dens uF pp/gaq -_ - Rrs (nrs) I (- Make Model _~--- Centrifuae/Cyclone Checks I ~Demck Derrick ~mua Aaamve f-rnou nrs~~~~~, '~:.,~~=& Description Cons... Dally Cos! Vendor Screen No. scr Sz X (inj Scr Sz Y (in) MUD LAB 1.0 45.00 j 1 1 200 000 I Barazan D+ 2.0 317.42 HALLIBU... . ~ ENERGY 1 2 200.000 SERVICES 1 3 200.000 I _- 1 4 200.000 BA. DM 2.0 1,575.00 HALLIBU... -- - 'Tech ~ ENERGY Service/L... SERVICES Dens uF Itu aq _ - g -- - - -- -- __ ._ __.... ---- --- -- -- - "`~ (ham) - - - -- - --- ----- -- - ~ Bicarbonate 3.0 83.22 HALLIBU... Make - Model jofSoda ENERGY Derrick Derrick I SERVICES 76.70 95.30 18.60 _ Description '~=Cons Dairy Cost vendor 3hakerScreens ,Potassium 3.0 179.07 HALLIBU... Deck No. Screen No Scr Sz X (In) Scr Sz Y (In) : HydrOXlde ~ ENERGY , ~'. 1 _. __ _...-.1 _ _. - - __ 200.000 - -- - - ---. _ _ -- ---- SERVICES 1 2 200.000 Baroid 260.0 2,ti59.80 HALLIBU... 1 3 200.000 ~ ENERGY 1 4 200.000 SERVICES >haker Checks - ~`, . Dens OF (Iblaall Hrs (hrs/ Lasf Cacin n Char•.k '~, .- HG Dryer Derrick Test Date restrype Derrick - - Shaker Screens _ _ __ - - f _ _-__ _____ _ _-_- _ __ _ Deck No. Screen No. Scr Sz X (in) _ _ .. Scr Sz Y (in) FOrmatIO17S 1 1 __ 200.000 Sample Top Formation Name '. N MD (ftKB) 1 3 200.000 anushuk Group 1,072.0 1 4 200.000 ..Base Permafrost 1,090.0 _ _ - --- -Nanushuk topset sst. 2,380.0 i Shaker Checks Dens l1F (Ib/gal) Hrs (hrs) -~ "'Torok _ _ 2,834.0 ' HRZ 7,233.0 Drill Strings BHA #3 Slick ~ Kuparuk Sandstone Mbr ~ . = ' 7,385.0 , Bh R e 1 ~ , , .k ,~ v Upper Kingak (Miluveach) e hem c 7,406.0 3 Hu hes 8 1/2ine HCM605 7101484 PDC g 2 1 ,833.00 Conductor Pipe, 100.OftK6 _ _ _ ` ~~IADC Bit Dull TFA (Incl Noz) (in') BHA ROP (tt/tlr) Nozzles (132") 1-1-NO-A-X-O-NO-LOG 0.65 1 31.8 13/13/13/13/13 IADC Codes Csg Run Date OD (In) Grade ~ M-3-2-3 1/26/2007 16 H-40 Wt (Ibs/ft) 65.00 400.0 - 7 400.® ftKB ~ ~ ~ ° 7 ~~ _ ~ ~~ - u 2,115 Surface Casing 4ftK6 , , BHA No. ',Cum Depth (ft) SPP (psi) Flow Rate (gpm) i7F0 Reference S h - , . , Rot HL (10001... Max. Hook Load (Ibf) Csg Run Date OD (in) IGrade /8 i L 80 2/16/2007 9 5 Wt (Ibs/ft) 40 00 r) _ ~ Drrllling Tf ~. WOB(10 Olbf) -Interval ROP iVhr) Total ROP ~ m (hrs) Drilling Torque `,' ~ ~ PU HL (1 OOlbf) Max. Over-Pull (ibf) - Cement ~ ~ ~ a ~ ~ 31.8 0.00 6 500.0 s , ._^, ~ ~ ,.,~;,...~ v~..~t...-• 220 ~ _s ~..... ::~ :.. ~3 _..... RPM (rpm) Motor RPM (rpm) Cum Orlll Time (hrs) Off Bottom Torque Torque Units 30 HL (t0001bf) _ __.- ~__ __.69.50 ~ 2,000.0 T _Ftlbs _ _ 230 __ --- -- - Hydraulic Calculations _ _ AV DP (ft/min) - AV DC (ftlmin)_ _ _ _ i_ Err L - _ A casing component contains a null value in ID `ill String Components I Top i Mtr Btm Bend Item I Density Drift .Conn Sz Conn Sz Btm Angle ~ is Description Len (ft) OD (in) (Ibslft) Gratle ID (in) (in) IIn1 Top Thrd (Inl Thrd Cum Len (ft) ( ) 141 Drill Pipe 6,646.... 4I 14.00 X95 3.3401 4 FH 4 FH 7,400.001 10 HWDP 310.26 4 27.20 2.750 ,;, 4 FH 4 FH 753.62 `- 1 Drilling 22.47 4 ', 2.000 4 FH 4 FH 443.36 Jars - Hydraulic ', 8 NWUF' 1IXOSub...... 148.78. 2.001 4,17.1U 6.28.1 _ 1.7bU ._.__ ~2500~ _ 4 FF1 -__~ _ 4LFH _...1 4 t-Fi 41U.t5y 41%2~IF - _ --172.11~I- - , 1 NM FLEX 31.08 6.68 2.880 4 112' IF 4 112 IF 170.11 D.C. r 1 NM FLEX 30.87 6 314 2.880 4 1/2 IF 4 1/2 IF 139.03 D.C. 1 i 1 Stabilizer 5.62 6 3/4 2.810 4 1/2 1F 4 1/2 IF 108.16: j 1 MWD (Dir 22.42 6.71 ~ 4.630 4 1/2 IF r 4 1!2 _. IF __ 102.54 ~ gging) BAT 1' MWD(Dir 10.00 6.76'x 4.880 41/2 IF 41/2 IF 80.12 & Logging} , , TM 1 MWD (Dir 9.21 6.79 --~ 4.560 - 4 1/2 IF 4 1/2 IF - 70.12 3 I & Logging) PM3 1 MWD (Dir 29.73 6.73 4.630 4 112 i IF 4 1/2 IF 60.91 & Logging) NUKE 1 MWD (Dir 27.96 6.76 (4.630 4 1/2 IF 4 1/2I IF 31.18 _. o99in9) FE i ORIGINAL HOLE ~ 0.00 Y --- Directional Surveys Date - - ~ Descrlptloa 2/28!2007 ~MWD surveys f ~ 1 Report Printed: 3!12!2007 .. _ ,,. 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 2s 5sss7s.oo i ;Safety ' ` '_"" x ~~ .~,k ~` c _ ~ ;r"t: ~~ ,yy~`"' Target Depth (ftK8) Target Formation -- Type Date Comment SafetyHlghllght~3l9/2007~SafetywhentestingBOPs .Dairy cost Total Cum Cost To Date ~- c ~ ~a~ ~ A, ~ ~. A .r~, ^n~ e; ;;'~~ ;~' 2,205,863 7_0 12,282 138.19 Dally Summary. ,. . ,a .,. ' ~.a~.,,u~a~, ,~,..-. ,t~'.usa ~ ~ .,., b~ :<;....- ...a ~` ~` " ~ 3"c;~ - - - - '"' Deily Mud Cost Mud Cum To Date ~~' Weather Lease I Road Conditions Wellbore Condition Over (+) / Under O AFE (+/) Var Days ' 10,909.70 262,091 19 -35 W! Sh ht Wind Clear of all Snow Good 5 9 ___- __. _- ___ _........._.._. __ -Depth Start (ftK8) Depth End (ftKB) ..._.-..... Operations ~ 08:00 _...._..-. _... .. __..__.-. _..-..... Pick up BHA #4 7,400.0 7,400.0 - _ - .... .---..--- --_-_.._ ._. ..........- _---_ -.._._- Depth Progress (ft) Drilling Hours (hrs) - Operations This Report Period Cut were Ilne cores with Baker Atlas, POOH and lay down same Test all BOPE 0 00 - _. - --_ - A iE 1',F%~ z~+~R4' 4~ In r: y56 9 q. ' Operations Next Report Period '~ f~~ '~-~ ^~ ~ ~*~ ~. a€.e '' ~'' ;~ - Make up BHA #4 RIH to 7400 Drill to casing point DaiCy FPreman Contact „ ~~p~°,~~ ~,~.~,,,~ ~ _ . _ .. _ . _ ,z, ~ -~ Job Contact Cell Phone ;, - - - -- ~Tlme Log .. ~ ~~ ..>.~,~~s~~;w....,., :~..,~ ~x ~k~.2a,~,.~ .~ , sw- . ~ . , ~.~. ,.~~~:.~, Start Dur Ops Scheduled Depth End RIgS: DDyon, Arctic Wolf Time (hrs) Cat Type Phase - Ma)or Op Operation Trouble (ftK8) Comment. Rlg Supervisor 00:00 1.00 Eval Planned Drlg Int 1 'Logging Log No Trbl ~ 7,400.0 LOGGING /RUN gob Lupton, Rig Manager Op #1 - RCOR-GR ! 13 CORE ATTEMPTS ~ Mud"Pu`~nps~: 1, Gardner-Deriver, PZ-9 - 2 CORES No. Pwr (hp) I~ Rod Diameter (In) RECOVERED ~~ 1,000.0 I ~~ 1 R U ... I I i r ke n VoUStk O bb s LnarSze(n) Sto ( ) I 101:00 5.50 Eval IPlannedlDrlglnt1 ILogginglLog ~NoTrtil 7,400.0 LOGGING/RUN -__51/2 9.02 ~I .._.0.066 Op #2 - RCOR-GR / 2 _ - '' CORE ATTEMPTS Pump Checks ; Strokes ~ -RECOVER 2 Pres (psi) slow spd (spm) Err (%) ~, , CORES /INSTALL - ~ NO T. _ l NEW BIT 8~ Mud Pumpti 2, Gardner-Denver, PZ-9 SAMPLE TUBE No. Fwr (hp) Rod Diameter pn) . _ 2 1,000.0 i 06:30 6.50 Eual Planned DrI 1nt 1 Lo In Lo No Trbl 7,400.0 LOGGING IRUN - ----- ~ - - - 9 99 9 9 Liner Size (In) Stroke (in) voiis~ oR (bbus... ' " Op #3 - RCOR-GR / 15 5 1/2 I _ 9.02 ~ 0.066 I' I CORE ATTEMPTS - -- - -RECOVER 11 ,Pump Checks CORES Strokes Pres (psi) _ Slow Spd _ (spml. Eff (%)_ -- -- ,-; 13:00 2.00 Eval Trbl'3rd Drlg Int 1 .'Logging Log Tool 7,400.0 SIDE CORE BIT ~ No 1 I: Party Failure STUCK /SHEAR Shaker's: <Descrlptlon?> '' OFF @ 6841' (3l8" Make Model j STICK OUT INTO E WELL BORE)! Shaker Screens ~~. y [ ...., ,, RCOR TOOL screen , x ~ STUCK/PULL Deck No. No. ScrSz%jin) ScrSzY(in) ~` FREE & HOIST TO I SURFACE ~~....------L--~ Shaker Checks Dens OF (Ib/gal) Dens OF (Iblgal) Hrs (hrs) i 15:00 1.50 Eval '~PlannedDrlg Int 1 'Logging Log No Trbl 7,400.0 RIG DOWN I LOGGING TOOLS r •' & WIRELINE IMaka c. MOdeI _ _ - - 1- ~ 16:30 0.50 Drlg planned Drlg Int 1 Drilling BOP No Trbl 7,400.0 CLEAN UP RIG --- i ~ Op FLOOR, HOLD CentrifugelCyclone Checks -... ' SAFETY MEETING Density Overflow(IWQaq OverFlowRate(gpm) FOR BOP TEST _ __ '~ __:_ -. ___.---_--_..,DensUF(Ib/gal) UndarflowRate(gpm) - 17:00 1.50 Drlg Planned Drlg Int 1 Drilling BOP 'No Trbl 7,400.0 DRAIN STACK, ~ Op ' PULL WEAR RING, 'Hours (hrs) loll under FI (%) Dens FD (Ib/gaq PICK UP TEST . PLUG ;• ,~ :~ #~ Mud~Additi3e Amounts ~;, 31~ ,, , --_ _-. ... _.. -. -. __ ... _.. __ ___- --! -.. --....---- -_-.-_ ~ Description Cons... Daily Cost Vendor N-DRIL HT+ 10.0 950.40 HALLIBU... ''' ENERGY ' SERVICES " ` jBaracarb 25 40.0' 779.20 HALLIBU... ENERGY SERVICES IMUD LAB 1.O 45.00 IBA: DM 2.0 1,575.00 HALLIBU... ITech ENERGY Service/L... SERVICES - - -- ~Barazan D+ 4.0 634.84 HALLIBU... 'i, ENERGY SERVICES - --- ,~e ~ ~ ,~, ~ ~ : ~`~ -~ Y ` Report Printt:d: 3H 2/2007 18 60 Descriptlon _ Cons . Daily Cost Vendor ' _ ~ , ~~ ~;~m ~ t Potassium 8 0 477.52 HALLIBU... ~ Hydroxide ENERGY Comment - TEST ANNULAR SERVICES pAC-L TO 250 LOW 2500 14.0 2,217.60 HALLIBU... , HIGH FOR 10 ENERGY SERVICES MINUTES, TEST ALL RAMS, DART Baranex 26.0 2,012.14 HALLIBU... VALVE,TIW, ENERGY CHOKE AND KILL SERVICES LINES, UPPER garacarb 50 , 40.0 752.80 HALLIBIJ... AND LOWER IBOP ENERGY VALVES AND ALL CHOKE VALVES SERVICES TO 250 LOW AND Potassium 90.0 1,465.20 HALLIBU... 5000 HIGH FOR 10 Chloride ENERGY MINUTES. SERVICES ~ ti ..y ~ .~~ Las, Casm ~nnro ~ fk g~Chec' ` ~`r~i ~ Tvoa 11.15 "--- Vis (s/qt) 58 8.8 -`- Filtrate (mU30min 4.7 ) ilter Cake (132') 2 0.020 m mUmL) ( 0.000 otassium (mglL) 27,000.001 82.0 ercent Oil (%) 2.0 ' Last BOP~Checir~~ ~'~ h„ :, ~' Mud Lost (Burt) (bbl) Test Date - Test Type_ __ -- -- ~ - - _ PV Over (cp) Gal (10s) (IbfH00f... Sand (°h) MBT (Ib/bbl) Lime (Iblbbl) Oil Water Ratio Mud Vol (Act) (bbl) FOrmatlOnS 7.000 0.0 7.5 2.4/97.6 1207.3 ~( sample Top YP "Over (Ibf/10 Gel (70m) (Ibf1100... Solids (°~) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbq Formation Name MD (ttKB) 'NanushukGroup 1,072.0 24.000 14.0 8.6 __ „, Type Gel (30m) (IbN100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) Base PermatrOSt 1,090.0 ' Polymer 27.000 27,999.999 14.8 Nanushuk topset sst. 2,380.0 Snicate (%) Electric stab (V) Comment Torok 2,834.0 HRZ 7,233.0 ud Checks: 7,400.OftKB, 319!2007 20:00 _ ~ Vry °= '' Kuparuk Sandstone Mbr 7,385.0 ~ ~~ (bbl) _ Calelum (mg/L) % Water (/) Mud Lost (Hole) nsiry (Iblgal) pH CEC for Cuttings Pf (mUmL) Upper Kingak (Miluveach) 7,406.0 11.00 9.5 0.380 82.0 Vis (s/qt) FIIVate (mU30min) Filter Cake (132") Pm (mUmL) Potassium (mglL) Percent Oil (Y.) Mud Lost (Surf) (bbl) Conducto~;Pipe, 100.OftKB. ` Ib /R) Wt G d D i ( s ra e ( n) 63 3.8 2 0.400 28,999.999 2.0 Csg Run Date O ' PV Over (cp) Gel (1 Os) (Ibf/100f... Sand (%) MBT (Ib/bbi) Ume (Ib/bbl) Oil Waler Ratfo Mud Vol (Act) (bbl) 1/26/2007 16 H-40 65.00 ~ 6.000 0.0 6.0 2.4/97.6 1207.3 Surface Casing 2 115.4ftKB " ~ YP Over (Ibf110... Gel (10m) (Ibf/100... Solids (%) LGS (%) Polymer (pprn) LCM Mud Vol (Res) (bbl) Csg Run Date OD (in) Grode Wt (Ibs1R) 25.000 13.6 9.4 2/16/2007 9 5/8 ~ L 80 40 00 ~ "Type Gol (30m) (Ibf/100... T (fl) (°F) Chlorides (mgll) HTHP FIIt (mU30... Alkalin (mUmL) ~,~ Whole Mud Add (bbl) 4erY16 {3,~~~1i~~ a~ tt ~a'..~~+~~'~u~ ,y~..5i' ~! 'Polymer 29.000 33,000.000 12.0 Cmnt Des Comment ' -- - - Silicate (%) Electric Stab (V) Comment ~~ , ""Dryirig Shaliet! ®ata =~ ~ . `. ~ _ ~3~:"~:,'"`~-~,: ~ ~` .: ,,_~ .._ ~~ .~ ~,~ ~ _•,i ',~ __ ._~~ ''~~~:~ ~~I Description Make ~ Modal HG Dryer ___ Derrick Derrick Shaker Screens Deck No. Screen No. Scr Sz X (in) Scr Sz Y Qn) _ ._ ~ 1 1 200.000 I 1 2 200.000 '. ~~~ 1 3 200.000 n~,' 1 4 200.000 ;Shaker Checks ~~ Dens OF (Iblgal) - - -- -~ =. Hrs.(hq~ __._-. _ ~ Description Make - -~~ - - ~ Modal -. HG Dryer Derrick _ Lerrick Shaker Screens ', Dack No. Screen No. Scr Sz X (In) __..- ------ ____- __-___, _-__,____,_ Scr Sz Y (fn) ___ __.-___, _, _ __ _ _ __._. _ -~ ____ --------- ---- --~ -- --- 200.000 I 1 2 200.000 1 3 200.000 1 4 200.000 hakerChecks H h ~ Dens OF (Iblgal)_ ...._ .__._. -- ---- ---- ---- rs ( rs)- --'--~- -- . L Descriptlon -~ - HG Dryer ~- -~-- - -- -- Make Dernck Model _ Derrick '~, t , ~ '. Report Printed: 311,212007 ~ J 76.70 95.30 ~ 18.60 -- ----- ShakerScreens Deck No. Screen No. Ser Sz X (In) Scr Sz Y.(in) 1 1 200.000 1 2 200.000 ', 1 3 200.000 1 4 200.000 _ ____ _ _ _ -- --- ShakerChecks Dens OF (Ib/gal) Hrs (hrs) DrillBtrinys: BltRun Make IBltlnventory BitType jkemCost Hook Load Hydraulic Calculations AV DP (ftlmin) II AV DC (ft/min) Err .._._ _I ..._ _-___ _._ _.._ ..... ...... ...------ -- ___.__..--~----- -~-----. .. .._._..._......._...i Drill String Components Mtr Top Btm Bend Item Density Drift Conn Sz Conn Sz gtm Angle Jts Description Len (ft) OD (in) (Ibs/ft) Gratle ID (in) (In) (in) Top Thrd (In) Thrd Cum Len (ft) (~) Ilbore Name VS Dlr (') Kick l'M Depth (ftK6) ORIGINAL HOLE _ 0.00 Directional Surveys __ _ Date DescriptlOn 2/28!2007 MWD surveys iI ~; i 2/15/2007 04:30 Y, ° s~`~ Type Date 76.70 wY~~ ~~ k t~~~P 95.30 18.60 ~u~ «~ ~ ~~'~ ~1:~. s,,~~'t~~ AF62035 23,556,979.00 Safety Highhght3l10/2007 (Lock out tag out procedure ~~r Delrycostrotal cum ~.~, y ~ ,-„ , x~ ~~ ~~.~'-;~.€ , '~rJv ~"~Yy~F=e ~„'~ '~'~ 244,375.02 1 :Daily Summary . -, .ar=: , `~ ~1., s ~.~~~~.a~ ..-~., ~- ~ ~ ~~ k~~,l~.~ ~,, ~ ~ €t~ 8x ~,'~ - Weather Lease /Road Conditions Wellbore Condition Over (+) / Under O AFE (+/.) yar Days ;Dally Mud Cost Mud -35 No_Wind Clear of all Snow Good C6 13,958.77 -.. _....._. _.-------- -._._.... --- ~------ ---.... -----_. ..--- .... .Depth Start(ftK6)--~ Depth Operations @ 08:00 ~'! DRILL 8 1/2" HOLE /DEPTH 7550' KB 7,400.0 _ - ---_ --_._-_ ..._.__........_...--- ----- ----___._..-------------- ~ ---.'Depth Progress (ft) Drlllin Operations This Report Period Finish Testing ail BOPE, Make up BHA #4, RIH, Circulate and condition mud at TD. 0 00 Operations Next Report Period- _ _--- -~--- -- ~~-- - --- ---- ~~ `~ ~~ ~ ' `~~; ~~ Drill to casing point as/per geologist instructions. Dail Foreman.Coritac~ :; _ _. ... ~ ~-.,-,~ , a„.. -, Job Contact .Time LOg ., ,: .:, rY af` -, ~. ~~ as +, a`t:-a4 '~` "-t~ri ~;(~ } ~ `F vii'",. '~ ~ sj .__' . _..~.... ,.. '.~ ..v' ~ ....-:~ ~.»..`.;,... .~"~'i_.:sti`~~s~. - ~ ~ ~. ~`a?.s .-a,.-z... ,ate-.:.,.; i Start Dur Ops Scheduled Depth End RIg$: DOyOn, AfCtil: WOH ~ Time (hrs) Cat Type Phase Major Op Operation Trouble {ftKB) Comment RI Su rvlsor ,' 00:00 4.50 Drl Planned Drl Int 1 I Drillin I BOP No Trbl 7,400.0 PRESSURE TEST g ~ 9 9 9 ~ Bob Lupton, Rig Manager Op ~ B.O.P. -TEST i LOWER PIPE Mud Pumps: 1, Gardner- ( RAMS, BLIND No. Pwr(hp) j RAMS, & CHOKE 1 1,000.0 1 I MANIFOLD (250 '~Iner size pn) Stroke (inj Cost To Date 2,526,513.2.1 Cum To bate 276,049.96 End (ftK8) h 7,400.0 i i ~ i ! 5 1 /2 l 9.02. 0.066 PSI & 5000 PSI) 10 ............. _.. MIN EACH (OK) / pump Checks TIGHTEN LEAK strokes (spm) Eff (%)_ BETWEEN KILL ~ Pres (psi) Slow Spd ', _ LINE HCR & 545.01 Yes 55 9.' CHECK VALVE / 3,100.0 No 77 9°, ALL TESTS Z i rdn 9 ui P s` - tirt p . 2, Ga er-Denver, P M WITNESSED BY NO. Pwr (hp) Rod Diameter pn) AOGCC REP. / 2 1,000.0 BLOW DOWN '':Liner Size pn) Stroke pn) VollStk oR (bbus... LINES & CHOKE 51/2 9.02 0 . 066 I __ _ W/AIR/INSTALL '-_ ~ ~ WEAR BUSHING .Pump Checks %` 04:30 07:30 I 3.00 Drlg 5.50 brig I Planned Drlg Int 1 Drilling Handle Tools No Trbl 7,400. Op Planned Drlg Int 1 1 Drilling Trip In No Trbl f 7,400. Op Strokes Pres (psI) Slow Spd (spm) Eff (%) 545.0( Yes I 55I 9: MAKE UP BIT, 3,100.0 No 77 9: MUD MOTOR & Shakers:'<Det;criptfon?> LWD BHA Make Model PICK UP BIT ..-_ - --- _-..- _ _ - - MOTOR MWD Shaker_Screens __ _._._--__.__ TOOLS AND LOAD ~ screen NUKES, THEN .Deck No. No. Scr Sz X (In) Scr Sz Y (in) L I L . SHALLOW PULSE __. -___- -_ _____-_ ,-_ _ _... - TEST, FINISH Shaker Checks _ _ - --- PICKING UP THE Dens OF (Iblgal) Dens OF (Iblgal) Hrs (hrs) ~ I REST OF BHA. ~ -a ~~ 13:00 1.00 Drlg Planned Drlg Intl Drilling (Trip In No Trbl 7,400A RIH TO SHOE.Make Nodal , OP --- 14:00 0.50 Drlg (Planned Drlg Int 1 (Drilling ~ Circ &Cond No Trbl 7,400.0 CIRCULATE Centrifuge/Cyclone Checks _ _ ~ Op ' ~ Mud ~ BOTTOMS UP ',Density overflow (Iblgap Overflow Rafe (gpm- '. 14:30 4.50 Drlg Planned Drlg lnt 1 Drilling - Trip 1n No Trbl 7,400.0 RIH TO 7390' pens uF (imgai- ---- Undernow Bale (9pmj -- Op 19:00 2.50 Drlg Planned Drlg Int 1 (Drilling ;Circ &Cond No Trbl 7,400.0 CIRCULATE ,Hours (hrs) OIIUnder FI (•h) Dens FD (Ib/gal) ~Op ~ ! Mud I BOTTOMS UP, ~I CONDITION Mu! Addi,~ive Amou_ risy ~ „~~ ~~~ ~~;, COMPLETE MUD `Description Cons .. ~ Daily Cost Vendor ' ~ SYSTEM TO 11.2 ,MUD LAB 1.OI 45.00( PPG IBA. DM 2.0 1,575.00 HALLIBU... i i~ 21:30 1.50 Drlg Planned Drlg Int 1 Drilling Rig Repair / No Trbl 7,400.0 SERVICE RIG AND (Service/L... SERVICES Op Service CHANGE VALVE IN PUMP #2 Potassium 4.0 238.76 HALLIBU... 3:00 0.00 Drlg Planned Drlg lnt 1 Milling Other No Trbl One hour correction, Hydroxide ENERGY ,_~ Op for daylight savings ' SERVICES ~_ time. PAC-L 5.0 792.00 HALLIBU... _.___ __ .- - ___ . _ -- -_____ .-_-- ENERGY SERVICES ,. _„des!~a;~::,.r~~~s:.K,.~r.'~`~~°"~~`~"s:<'+~ ~J: , , ,,., ,a .... _.o. ,.., ..... ......... ....,w...", , m,ya Aaa(t)ve wmoun.><s ~ ~ ~ ~ ~ ~ :~. 76.70 95.30 18.60 Description .Cons . Dally Cost Vendor 'Mud Checks: 7,400.OftKB, 3M 0/2007.09:30 = ' "- ~ ; , ` N-DRIL HT+1 5.0 475.20 HALLIBU... Density (Iblgal) pli CEC for Cuttings Pf (mUmL) Calcium (mglL) % Water (%) MUd Loat (Hole) (bbl) ' ~ ENERGY 11.15_ _ 9.5 _ 0.350 _ _ _ 82.0 i ~ SERVICES . Vis (slgt) - Filtrate (mU30min) Fllter Cake (/32") Pm (mUmL) Potassium (mg/L) Percent Oil (%) IMud Lost (Surf) (bbl ~- -- J Baracor 700 6.0 868.26 HALLIBU... 66 4.1 2 _ 0.350 __ 32,000.002 2.0 ~ ENERGY i ~PV Over ~cp) Gel (tOs) (Ibf1100f Sand (%) - ~~~-~ ~ MBT (Ib/bbl) -~ Lime (IWbbl) -Oil Water Ratio Mud vol (Act) (bm) SERVICES 5.000 0 0 7 5 2.4/97.6 _ .- - - _ - - --- ____--- --__-- - 1_.___ - --,Baranex 6.0 464.34 HALLIBU... i, YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (/e) LGS (%) - - Polymer (ppm) LCM i Mud VOI (Res) (bbl) - ENERGY Type Gel 30m) (IbU100... T fl) (°F) Chlorides m /L) HTHP Filt mU30... Alkalin mUmL Whole Mud Add bbl SERVICES Polymer 26.000 - _ 33,000.000 13.2 ~ L ' _- ( ( (3e ( ( ) ( ) ' Barascavb 7.0 446.39 HALLIBU... '-.:- Silicate (%) Electric Stab (V) Comment ENERGY SERVICES :, k :MudtCh 9cks: 7 400.OftKB 3/1012007 20:90. ( = 'j ; , (,; g ., .. '~ (~~',.. .., . ^ ~ `~ ...:~~' ~ , Barofibre 24.0 603.84 HALLIBU... Dens/ Ib! al pH ~ CEC for Cuttin s Pf mL/mL Calcium m /L k Water % Mud Lost Hole bbl ~ 11._15______ 8.5 __ 0.180__ ___ 82.0 I SERV CES Vis (s/qt) Filtrate (mU30min) Fllter Cake (132") Pm (mUmL) ~ Potassium (mglL) Percent OII (%) Mud Lost (Surf) (bbq ', I ~ 78 _ 4.9 2_ _ 0.180_ _ 29,999.999 2.0 ~Baroid !826.6 8,449.98 HALLIBU... PV Over (cp} - Gel (1 Os) (Ibt/100f .. Sand (%) - MBT (Ib/bbl) - Lime (Iblbbl) Ofl Water Ratio Mud Vol (Act) (bbl) ~ ENERGY 6.000 0.0 9.0 2.4/97.6 1217.5 ~ SERVICES YP Over (Ibf110 Gel (10m) (Ibf/100 Solids (H) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) ~, ~ 7 y v.~ ~.. ~+~ k~~ ,~ ra ~,~ ~ ~ 7t ~ ~ ~ ' 25.000 13 8 8 4 La tCasing Che~rck,;,~'~`~ii;~~~~~'~' ` Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mL/30... Alkalin (mUmL) WbOla Mud Add (bbl) Date Type _. Polymer 28.000 31,000.000 13.5 -suicate j%- eitictrlc swe jv) commem - - - - --- kLast BOP~Check z.o„'~ ~~` ~~~: ~.~:~u. ~w:~i '' Test Date _ _ Test Type ,. ,,,. Drying`Shaker°Uata c tip: ta rye, ~a ,,,~ ~`~' '"~ ~~~~: ~ ~ ._ ;.;,~ ~ _ ~- a ~ - - - - - -- _ _ ,. ~_. _ ~.,~, _ I - _ - - - J Description Make Model Formations HG Dryer Demck Derrick _ ~ - sample Top - - -- --- F"Shaker Screens 1 Formation Nama MD (itlc6) Deck No. Screen No. ScrSzX(In) ScrSzrpn) Nanushuk Group 1,072.0 1 1 200.000 Base Permafrost 1,090.0 1 2 200.000 Nanushuk topset sst. 2,380.0 1 3 200.000 -Torok 2,834.0 ' 1 4 200.000 ____________ :HRZ 7,233.0 Shaker Checks Kuparuk Sandstone Mbr 7,385.0 --- Dens OF (Iblgal)-_ - ___._ - Hrs (hrs)_ _ -_. _ -_ _ ----- --- ------ ------- _.__ - -------------- - -.Upper Kingak (Miluveach) 7,406.0 -Description - Make Model --Conductor Pipe, 100.OftKB ,:. --. '. Csg Run Date OD (In) Grade Wt (Ibslft) HG Dryer Derrick Derrick 1/26!2007 16 H-40 ( 65.00 -- - -- ~ Shaker Screens Surface Casin (2 115.4ftK6 ,; ~ ,Deck No.-.:.._. _.. -......._. ,_ Screen No _ .......... ...Scr Sz X (In).__.,:. __. _ -_ ,- -., Scr Sz Y (In) . Cti16/2007 0 9,i5/8 IGrL-80 Wt40S00 1 1 200.000 1 2 200.000 ement~ ~.y~ ~ ~'~•~;~;~~,~~ ~;=;~ 1 3 200.000 '° ` `~°~~ Cmnt Des Comment 1 4 200.000 `--- - ---~_-------- -- - ~~', Shaker Checks Dens OF (Iblgal),,.,,, Hrs (hrs),._,..:_ _,.:..:._.__..._. Descripton Make ~ Modal HG Dryer Derrick Derrick I Shaker Screens - _ Deck No. Screen No. Scr Sz % Qn) _- _ ____._ - .._._..___... Scr Sz Y (in) - _----_ __ _ - 1 _ _._ _ - __ --- -1 -- - 200.000 1 2 200.000 1 3 200.000 K- 1 4 200.000 I"Shaker Checks ~ .-.-.- -----._. Dens,UF(Ib/gal)..----.._.__-.. ..___-- .. __._- .------.....----H~-~h~)------- _ ` Drill $trin s: BHA #4, Motor • Viar~ical .:., ~ , Blt Run Make Bit Inventory Bit Type kem Cost 3RR1 1Hughes 8 112in, HCM605, 7101484_ _ _ _ _ ~PDC __ _ _1 22,833_00 ~f - IADC Bit Dull TFA (Intl Noz) (in') IBHA ROP (R/hr) lNozzles (/32") IADC Codes - - - -- - ----~ _ __ 0.65 1 - 40.3 _I_ _..1 311 311 3/1 3/1 3...._ 1 M-3-2-3 '~ 76.70 95.30 j 18.60 4 (ft) IsPP (psI) (Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook pal (rpm) Motor RPM (rpm) ~~,Cum Drill Timo (hrs) Off Bottom Torque Torque Units AV DP (ftlmin) _ _ _ _ _ ~ AV UL (rUmin) ur _ _ A casing component contains a null value in ID ', Drill String Components - Mtr Top Btm Bend Item Density Drift Conn Sz Conn Sz Btm Angle (°) Jts Description Len (ft) OD (In) (Ibsfft) Grade ID (In) (in) (in) Top Thrd Pnl Thrd Cum Len (ft} 2421 Drill Pipe 7,547.... 4 14.00 X95 ~ 3.3401 ~ 4 FH I 4 ~ FH ~ 8,326.00 10 HWDP 310.26 4 27.20 2.750 4 FH 4 FH 779.00 1 Drilling 22.47 4 1 2.000 4 FH 4 FH 468.74 Jars - Hydraulic ~' 8 HWDP 248.78 4 27.20 2.750 4 FH 4 FH 446.27 ._1XOSub ... . 2.001 6.281...._ __ I2.500~ __l __4IFH_ __l_..._41I2IF 1._....197.49......__ 1 NM FLEX 31.08 6.68 2.880 4 112 IF 4 1/2 IF 195.49 D.C. '; 1 NM FLEX 30.87 6 3l4 2.880 4 1/2 IF 4 1/2 IF 164.411 D.C. I 1 Stabilizer ~ 5.62 6 3/4 2.810 4 112 IF 4 1/2 IF 133.54 , .. 1 MWD (Dir 22.42 6.71 ~ `4.630 4 112 IF .. 4 1/2 11F . 127.92 t gging) L BAT 1 MWD (Dir 10.00 6.76 4.880 4 1/2 IF 4 1/2 IF 105.50 & Logging) TM ~ 1 MWD (Dir 9.21 6.79 4.560 _ - 4 112 IF 4 1l2l IF 95.50 -- ~ & Logging) PM3 i ' 1 MWD (Dir ;. 29.73 6.73 4.630 4 112 IF 4 1l2 1F 86.29 & Logging) I " 1 MWD(Dir 27.96 6.76 4.630 4112 1E 41/2~IF 56.56 ~~ 8 Logging) i , FE 1 ~ 1 Float Sub 2.58 6.8 2.750 4 1/2 IF 4 1/2 IF 28.60 I 1 Mud Motor 25.02 7 .. 1.500 4 1/2 IF j 4 1/2 IF 26.02 0.00 Weilbores r ~ `t ~'_~ Y`` ~: ,, ~ ~ :r ~ t~~ "-„~ ~ J - ...M, ~ ' : _.,~.. ~ ~-"~ ~ s v .}. ~,: ~,,~ .`! Wellbore Name . , ` _ . x. ~ VS Dir (°) ~ Kick Off Depth (ftK6) . L HOLE ORIGINA 1 0.00 ~ _ Directional Surve s -- -_Y -- - -- -- - - - --- -- Date Description 2/28/2007 MWD surveys ''' I, 1~ i r _ !. i ,• 2115/200704:30 76.70 ~ 95.30 ~ 18.60 AF62035 ~23,556,979.OOLS,esssls.oo ._, ~; :,~ ':$afe ~"', c ~ ~.~ ~`'It ,uy - ~ x ~ ~ f ,. '~ ,~, "~:'!'" 'y''~ , °,~ ,I.3 Target Depth (kK8) ~ r~~: ` F b ~ - Target Formation ~ ... w~ _. a. ana.~.rs..,ti.a.xa ..~.x. r.r. s .._ ~.. 7r, o Type Date I SafetyHghllght~3%11/2007 ~Safetywhenrunningcasing ..: ,: t .,..x?a,: fi.k~ a.,a+aa , >a. e .. ,.., .a ., Comment _ _ baiiycosiTotal - - umcoslroDate - ~ g rr~,,, ~ r,~~, ,~ - Datl Summa ~ >~ ~ ''~ Y ~ ~5= y ry n ~ : ~~ ~ *;~ ~~ ~ 252,047.16 _ ,, ,~~", s ~ 7 ~~~ ~ r ~x '~ ' 12,778 560 3_7_ _ . ~,,,_~. , a~. ~ . a•r... . , ~ _ "` ' "' ` ~°" ' Daiy Mud Cost Weather Lease /Road Conditions Wellbore Condition trier (+)! Under (-) AFE (+/) Var Deys Mud Cum To Date -30 !CLEAR l Clear of ail Snow l Good 6 25,797.91 301,847.87 ---- ._ -_- ......_._ .._..-.-__ _ Operations ~ 06:00 ___-_._-. __--- -___. __.__. __.__... -....Depth Star) (kK8) Depth End (kK8) CIRCULATE UP SAMPLE @ 8433' KB 7,400.0 8,326.0 OperatlonaThis Re{wrt Period _ ~ "' - Depth Progress (k) Drilling Hours (hrs) Drill ahead to casing point aslper geologists ins uctions. 926.00 23 00 ~~ tr Operations Next Report P eriod F c ~ ` a C p g p p Pr dd ,l ~ € ~ta ~~ P ~ Circulate bottoms u at cash olnt short to to 7400 MD circulate bottoms u POOH y mat sus --- : } ob Co Tl me, Lo ~: ,~~ ~ ~ ~ ." ~ v ~° _~. . . ~ .v ~" c$ ~~...~: ~ 'ts's t~~ r " ~~~~ . ~ , .. .. . Start Dur Ops Scheduled - . . - Depth End ~ R19S: DOyOfI ArctlC WOIf ~ .~ -~` " , Time (hrs) Cat Type Phase Major Op Operation Trouble (ftK8) Comment Rig Supervisor 00:00 2.00 Drlg ~Plpnned Drlg Int 1 (Drilling Drill -Rotary No Trbl 7,450.ODRILL 8 112" HOLE gob Lupto Rig Manager 450' KB ' ~ (Mud Pum 1 d er-Denver PZ-9"''; 02:00 1.00 Drlg Planned Drlg int 1 Drilling Other o , No Trbl 7,450.0 CHANGE BACK F/ No. Pwr (hp) ~ Rod blameter{In) Op I DAYLIGHT 1 OOO i - SAVINGS TIME Liner Slze (I n) Stroke (In) ~Vol/Stk OR (bblls... .:03:00 21.00 Drlg Planned Drig Int 1 Drilling ~ Drill -Rotary No Trbl 8 326.0 DRILL 8 1/2" HOLE _ _5 1/2 9.02 .0.066 Op F/ 7450' to 8326' ., Pump Checks _ _ l 1. ~ l ~ .. _ _ . .. - Mud Checks: 8,324.OftK6, 3/11/2007 10:00 , , . Strokes- _ g ( Densi ry (1 a1) PH CEC for Cuttln s Pf mu ° ~ ( ) Mud Lost Hole) (bbq i Pres (Psi) Slow 3pd _ laPml Ek (%) _ Calcium (mg1L) % Wa ( l 15 9.0 0.250 605.Oj Yes ~ 55~ 95 81 .0 Vls (s/qt) Filtrate (mlJ30min) Fllier Cake (l32") Pm (mL/mL) Potassium (mg/L) Percent Oil (%) 'Mud Lost (SurQ (bbl) 3,220.0 NO 75 95 60 4.4 2 0.450 35,999.999 2.0 Mud Pumps: 2, Gardner-Denver, PZ-9 _ PV Over (cp) Gsl (10s) pbf/100f.. Sand (%) MBT (Iblbbq Lime (Iblbbq OII Water Ratio Mud Vol (Act) (bbl) ',No. Pwr (hp) Rod Diameter (in) 6.000 0.2 _ 7.5 2.4/97.6 2 1,000.0 ~ YP Over (Ibf/10... Gel (10m) (IMN00... Solids (%) LGS (%) Polymer (ppm) LCM _ _ Mud Vol (Res) (bbl) Liner Slze (In IStroke (in) VollStk OR (bbl/s... _ 27.000 14.7 10.3 -9.02 - 0.066 __-- 5 1/2 1 ~pe Gel (30m) (IbfH00... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mL/30... Alkalin (mL/mL) _ _ . _ . Whole Mud Add (bbl) '. oIR ymer 30.000 33.000.000 12.8 ,Pump Checks Strokes -- Silicate (%) --------~- Electric Stab (V) - Comment Pres (psi) .Slow Spd (spm) Ek (%) 605.0 Yes 55 95 Mud Checks: - ! 8,324:OftK6, 3/11/2007 21:30 : _ ~. ~;<.;'.. 3,220.0 No 77 95 11.15 9.0 0.210 82.0 60.0 (Jnewera. wrar:r,lpuyn r~ ;. ~~ - ~ ~';- Vis (s/qt) Filtrate (mL130min) Filter Cake (/32") Pm (mL/mL) Potassium (mglL) Percent Oil (%) Model Mud Lost (Surf) (bbl) i Make 61 4.0 2 0.190 29,999.99 9 1.0 185.7 '---.--------- -----_- . ---- PV Over (cp) Gel (10s) (IbN100f... Sand (%) _ MBT (Ib/bbl) . Lime (Ib/bbl) Oil Water RaOo _ Mud Vol (Act) (bbl) Shaker Screens ___ ~ 7.000 0.2 8.0 1. 2/98.8 1 190.4 n S _ YP Over (Ibf/10... Gel (10m) (Ibf/100... Solids (%) _ LGS (Y.) Polymer (ppm) _ LCM Mud Vol (Res) (bbl) No. Scr Sz X (In) 'Scr Sx Y (In) Deck No. ~ 26.000 14.9 10.6 ._-----______- ~- _ -- --- ~--__ Type Gel (30m) (IbfH00... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (m1J30... Alkalin (mL/mL) Whole Mud Add (bbl) Shaker Checks Polymer 28.000 _ 29,999.999 12.0 Dens OF (Ib/gal) Hrs (hrs) - Dens OF (Ibfgal) ,Silicate (%) ~ Electric Stab (V) Comment I ..--.-s--._. Drying.Shake r Data ,.~x~ ~ ,.. ,-a : 4 :. ~~~,~,~ ~~ `4w~ ._"~r..~~.~,..~ ~ .,,~?, : ~ ~', ~.`"ay;~~ . ~~ yM M ake ode/ i.Description Make - Motley _ ' HG Dryer Derrick Derrick Centrifuge/Cyclone Checks _ _ Shaker Screens Denalty Overflow (Iblgal) Overflow Rate (gpm) i; Deck No. Screen No. Scr Sz X (In) Scr Sz Y (in) __ -_- _ ____. _ __ _._.-__ __ __ - 1 1 _ -.... 200.000 . .. ... .Dens OF (Ib/gal) Underflow Rate (gpm) 1 2 200.000 " k 1 3 200.000 Hours (hrs) Oil Under FI (%) ;Dens FD (Ib/gal) ~ = 1 4 200.000 ~e ~ ~-;_ :.::..,~~aal.t....~...,....:.~.~~.,~ ,r~.s~.:; `Shaker Check: _ _._.. I, -----_ - ~,, Descrip0on i HG Dryer I: Shaker Screen 'i Deck No. ~_ - Descriptiony ~ Cons .. Daily Cost Vendor ^~ _ __ ___ _ _-_____ _. Aldacide G 10.0 1,659.30 HALLIBU... ENERGY MOOeI Derrick 1 1 1 Make Derrick 200 200 -iMudlab 1.0 45.00 SERVICES -BA.DM 2.0 1,575.00 HALLIBU... - -Tech ENERGY Service/L... SERVICES Barazan D+ 4.0, 634.84.HALLIBU... ENERGY - SERVICES ~. _ _... _._ • Descri tlon Cons Daily Cost Vendor i ---p --- --_ __ Shaker Checks N-DRIL HT+I 8.0 760.32 HALLIBU... ' ._ _.. _ _._.__.___ Dens uF pblgal)____-__-_ -- Hrs (hrs--- ENERGY ~ --- - ~-~"°~ ~ ,~.~ ,~ ;.. ~,~ ^:;: ",~ ~ ~ -- -' SERVICES Drying Shakes Data-, ~ .._ =-,~r~,.' : ~~~~ < ~ ~ ~ _-- - .k.,.~ ~ ` . .~"~,x: ~~'y~ ,.,~ ~,s~„~~.,~~ ,_ Barofibre 10.0 251.60. HALLIBU... Description Make (Model ~ ENERGY HG Dryer Demck IDernck ~ ' SERVICES Shaker Screens. --Potassium ~ 12.0 716.28 HALLIBU... i Deck No. Screen No. - -- ~ -Scr SzX (in) - - Scr SzY (In) Hydroxide iI ENERGY 200.000 J SERVICES . 1 2 200.000 1 3 200.000 ~ Baro-Trot 14.0 889.56 HALLIBU... Plus ENERGY 1 4 200.000 SERVICES i Shaker Checks Dens uF pb/gaq Hrs (hrs) Barascav D 15.0 956.55 HALLIBU... ENERGY ~I Dril Sarin s: BH BIt3RR1 Hueh A #4 Motor - vertical °~~ • ~ ~ - ~ ~ ~ ~ f. SERVICES ~ ~ talc Inventory BnTypeItem cost ~ Baracarb 50 25.0 470.50 HALLIBU... 1 g e_ s 8 1/tin, HCM605 7101484 PDC_ _ 22,833.00 ENERGY ~_ - --- (ADC Bit Dull TFA (Intl Noz) Qd) BHA ROP (ft/hr) Nozzles (132") (ADC codes SERVICES ------- ~ 0.65 40.3 13/13113/13/13 l M 3 2 3 pAC-L i 26.0 4,118.40 HALLIBU... 7,400.0 - 7,400.0 ftKB ENERGY it BHA No. Cum Depth (ft) SPP(psi) Flow Rate (gpm) ~ TFO Rehrence Rot HL (10001... Max. Hook Load (Ibf) ', SERVICES 4 WOB (100016f) Interval ROP (tVhr) Total ROP (ft/hr) Drllling Time (hrs) Drllling Torque PU HL (10001bf) Max. Over-Pull (IbQ ~ Baracarb 25 37.0 720.76 HALLIBU... ~ ENERGY Bit RPM (rpm) Motor RPM (rpm) .Cum Drill Time (hrs) 1Off Bottom Torque Torque Units 'SO HL (t0001bf) SERVICES _. Potassium II 66.0 1,074.48 HALLIBU... II -- -_..__ _..__..~ __..- _. __.._----------- - -~1-._ __. _ _.~.. -~---- ', Hydraulic Calculations ',Chloride j ENERGY Av DP (ft/min) Av Dc (fumin) err j SERVICES A casing component contains a null value in ID --Jga~anex 88.0, 6,810.32 HALLIBU... 400.0 - 8,326.0 ftKB - ~ .. _ ~'~s w; r ~'~ ENERGY A No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) ITFO Reference Rot HL (70001 Max. Hook Load (Ibf) ' SERVICES 4 ~ 926.00 3,200.0 425 232 240 ~ WOB (100016f) Interval ROP (Whr) Total ROP (ttlhr) Drllling Time (hrs) Drllling Torque PU HL (10001bf) Max. Over-Pull (Ibf) BarOld 500.0 5,115.00 HALLIBU... j 20 40.3 40.3 23.00 4,500.0 232 10.0 ENERGY Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (10001bf) SERVICES __ 345 ; 125 23.00 2,000.0 Ftlbs 230 ~ 4 ,; I' Hydraulic Calculations Lasf Caslrig`Check !'° «' r L nv DP (roman)-_nv Dc ~rumir,)~- - A casing component contains a-null vralue in ID _ L~as~BOP Check' ~3~ ~`y~t " t ' ~~~ "~I ~I DnllStnn Com onents ~_,. ~ _..>~ ~ ~"l~~ + ~ s .~ ~' 9 p __ ~ ~ _u..,~ ~~ ~.. ~'~ ,r , _ ~ Mtr - Test Date Tett Typo i Top Btm Bend Item Density Drift Conn Sz Conn Sz Btm Angle --- -- - - Jts Description Len (ft) OD (In) ... (Ibs/ft) Grade ID (in) Qn) ', (in) !Top Thrd _ Pn) Thrd Cum_Lan (ft) .^O Formations ., . , _ .._.. , _ Sample Top 2421 Dnll Pipe ~ 7,547.....1 4 ~ 14.00 X95 ~ 3.3401 I 4I~FH ~ 4 i FH ~ 8,326.OOr ~ Formation Name MD (ftK8) I 10 HViIDP 310.26 4 27.20 _ ._2.750 ___ _'~ 4;FH 4 FH 779.00; Nanushuk Group 1,072.0 ~ 1 Drilling 22.47 4.. 2.000 4 FH 4 FH 468.74 ',Base Permafrost 1,090.0 - Jars - I ', Nanushuk topset sst. 2,380.0 Hydraulic !Torok 2,834.0 8 HWDP ', 248.78 4i 27.20 2.750 4'FH 4 FH 446.27 HRZ 7,233.0 li 11X0 Sub 2.001 6.281 2 500 4FH ~ 4 1/2~IF ~ 197 491 Kuparuk Sandstone Mbr 7,385.0 _ _. 1 _'..._ ,.,.,. _ 1 NMFLEX 31.08 6.68 2.880 , 41/2 IF 41/2 IF 195.49' UpperKingak(Miluveach) 7,406.0 D.C. -. r ____ _ ___ _ - __..____ __ __ Conductor Pipe, 100:OftKB, _~. ---- i 1 D CFLEX I 30.87 6 3/4T- 2.880T r 4 1/2lIF ( 4 1/211F 164.41-- c1/26/2007 oD 16 G H-40 wt65g00 1 Stabilizer 5.62 6 3/41- 2.8101 I 4 1121 IF 4 1/2 IF 133.54: Surface Casing, 2;115.4ftKB . 1 MWD (Dir 22.42 6.71 4.630 4 1/2 IF 4 112 IF 127.92 csg Run Date oD pn> Grade cwt jros/ft) i & Logging} 2!16/2007 9 5/8 L 80 ~ 40 00 BAT ~Ceme~t'~~~,~'~~`..~.>~~' ~ . .s ! ,Xy .~ .un.. ,,. 1 MWD(Dir 10.00 6.76 4.880 4112 IF 4112 IF 105.50 --GmntDes__ Comment _ & Logging} I ----- TM '1 MWD (Dir 9.21 6.79 14.560 4 112 IF 4 1/2 IF 95.50 & Logging) I PM3 _ i 1 MWD (Dir 29.73 6.73'; 4.630 4 1/2, IF 4 1/2 1F 86.29' ~ Logging}' i i ~ ~ ~ ~ ~~ ~ Report Printed: 311,212007 ~., , . _ x n , . ~ ~ ~'~ ~ - . ~, .,.., ~-~ .............,w,,,,o,.., 95.30 18.60 Mtr Top Btm Bend ttem Density Drift Conn Sz Conn Sz Btm Angle Jts Description Len (ft) OD (in) - (Ibslft) Grade ID (In) ' (in) (i^) Top Thrd Pn1 Thrd `Cum Len.(ft) (~) 1 MWD (Dir 27.96 6.76 4.630 4 1/2 IF 4 112 IF 56.56 & Logging) FE 1 FfoatSub 2.58 6.8 i 2.750 4112 1F 41/2 1F 28.60 1 Mud Motor ~ 25.02 7~ ~ 1.500 ~ 4 1I2~IF 4 1/2IF ~ 26.02 0.00' ORIGINAL HOLE 0.00 Date Descriptton 2/28/2007 MWD surveys _ _ Survey Data MD (ftK6) Incl (°) 7,545.441 0.41 Azm (°) 52.961 TVD (kKB) 7,544.701 NS (ft) -41.931 EW (ft) -12.781 ` VS (ft) -41.931 DLS {°1100ft) Survey Company 0.121 HALLIBURTON 7,794.20 0.41 28.91 7,793.46 -40.61 -11.63 -40.61 0.07 HALLIBURTON 7,982.531 0.571 3.281 7,981.781 -39.091 -11.261 -39.091 0.14HALLIBURTON ~ 8,170.38 0.48 23.14 8,169.62 -37.43 -10.89 -37.43 0.11 HALLIBURTON I. ad Date 'Rig Release Date Ground Elevation 2/1512007 04:30 76.70 aG -~ c f r k~a... ~ _/ ~:. ~ V . ~+ .; ~# ~x .. ~,~..~ ,~ Type Date - ..d -30 No Wind ~ Clear of all Snow Good Operations ~ 08:00 DOWNLOAD LWD TOOLS / 8433' KB Operadons This Report Period Drill to 8433', Circulate bottoms up, Short trip. Circulate bottoms up, POOH Operations Next Report Period POOH and lay down BHA, Rig up and run casing. 95 30 ~ 18 60 AF62035 23,556 ,979.OO zssass7s.oo ~~ ,^'!~'~ ..W ~I~C~~!)~iai Target Depth (ftKB) ~--- Target Formation _--~- Daily Cost Total Cum Cost To Date a ~~ ~ ~ Y-~ ~ ~~ ~~~,~~' 242,835.61__ __ .. 13,021,395.9.8 __ _ _ Daly Mud Cost Over (+) /Under (-) AFE +h Var Days ( ) Mud Cum To Date ~ 6 16,586.36 318,434.23 - ~~~ - Depth Start (ftK6) _ Depth End (ftK6) 7,400.0 7,4 00.0 _ -....-.. ....._ _ ..........._. .',.Depth Progress (R) --- _ Drilling Hours (hrs) -... 0.00 Cell Phone Start Dur -.. Ops Scheduled Depth End - R19S: -DOyOn,AfCtIC WOIf _'- Time (hrs) Cat Type Phase MaJor Op Operation Trouble (ftK6) Comment Rig Supervisor 00:00 3.50 Drlg II Planned ~ Drlg Int 1 'Drilling Drill -Rotary ' No Trbl 8,389.0 DRILL 8 1 /2" HOLE .gob Lupton, Rig Manager IOp II I F! 8326 - 8389' KB Mud Pumps; 1, Gardner-De ;03:30 0.50 Drlg Plarined Drlg Int 1 Drilling Circ &Cond No Trbf 8,389.0 CIRCULATE OUT No. Pwr (hp) Roc Op Mud SAMPLE @ 8389' 1 1,000.0 KB Liner size (ln) stroke (ink Vol 04:00 1.50 Drlg jPlanned Drlg Int 1 Drilling Drill -Rotary ',No Trbl 8,433.0 DRILL 8 1/2" HOLE ___ 5 1/2 ) 9 02 _. IOp F/ 8389' - 8433' KB pump Checks ..05:30 2.50, Drlg Planned Flat Int 2 Drilling Circ &Cond No Trbl 8,433.0 CIRCULATE UP stroke Op Mud SAMPLE 8~ CLEAN __Pres (ps[) _Slowspd (spm- _- .. .. HOLE 633.0 Yes __..- 08:00 4.50 Drlg Planned' Flat Int 2 TDrilling Short Trip No Trbl 8,433.0 WIPER TRIP / 3,000.0 No Op BACK REAM F/ (Mud Pumps: 2, Gardner-Oe 8433' - 7300' KB / No. Pwr (hp) Roc TIGHT SPOT @ 2 1,000.0 7523' (WIPE liner size pn) Strokke pn) Vol ~ CLEAR) _ 5 1/2 i 9.02 i _ ~:30 1.00. Drig Planned Flat Int 2 Drilling Short Trip No Trbl 8,433.0 BLOW MUD LINES pump Checks skokel Op /RUN IN HOLE C3' pres(psq Slowspd (spm) ..FILL 633.0 Yes 13:30 2.00 Drlg 1Plarried Flaf Int 2 Drilling Circ &Cond No Trbl 8,433.0 CIRCULATE ~ ~ 3.,000.0 No Op ~ Mud SWEEP 8 CLEAN Shakers,:_<Desiiriptlon?> ~~ HOLE Make (Model 15:30 0.50 Drlg Planned Flat Int 2 Drilling Circ &Cond No Trbl 8,433.0 MONITOR WELL, _ ___. _l__- Op Mud SPOT PILL Shaker Screens 0.066 , s Eff (%) 551. __951 .. 75 951 (Inl 0.066 Eff (%) 5~ 95 7 95 16:00 2.00 Drlg Planned' Flat Int 2 ! Drilling Trip Out No Trbl 8,433.0 PUMP OUT OF ! screen Deck No. No. Scr Sz X (In) Scr Sz Y (In) Op ! HOLE TO 7300' _ _ ~ __ ~ I _, _. L__ I _ _ ~-- --- `18:00 6.00 Drlg Planned Flat Int 2 Drilling Trip Out No Trbl 8,433.0 POOH TO SHOE, Shaker Checks _ Op 'MONITOR WELL Dehs OF (Ib/g/gal) Dens OF (Ib/gal) Hrs (hrs) J 11.2.0_ ViS (sfgt) 65 - - - PV Over(cp) Polymer _ Silicate (%) 13.OftKB, 3H2/2007 16:30 `;',.; CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) ( Mud Lost 9.0 _ _ _ 0.300_ _ _ 81.0 to (mL/3pmin) Filter Cake (/32") Pm (mUmL) _ PoWSSIum (mglL) Percent OII (%) Mud Lost 4.3 2 __ __ 0.35_0 35,000.0 0 0 1.0 _ IOs) (IbN700t... Sand (%) _ MBT (Ib/bbq . . Lime (Ib/bbl) OII Water Ratio Mud Vol ( 5.000 _ _ 7. 5 _ 1.2/98.8 IOm) (IbfN00... Solitls (%) _ _ _ _ LGS (%) __ _ Polymer (ppm) _ __ LCM _ _ Mud Vol ( 26.000 15.6 12.0 30m) (IbfH00... T (ft) (°F) Chlorides (mg/L) _ HTHP Filt (mU30... Alkalin (mUmL) Whole Mr 29.000 81.0 33,999.998 12.8 Make Checks ~mua r-aa(>:(ve Description rtmyuncs r~ ~__~~~, Cons... Daily Cost ~ Vendor MUD LAB j 1.O 45.00 'BA. DM 2.0 1,575.00 HALLIBU... Tech ENERGY i ServicelL... SERVICES ! CLAYSEAL ~ 2.0 1,586.26 HALLIBU... ENERGY SERVICES iWALL-NUT 4.0 105.20 HALLIBU... M ENERGY I SERVICES ' _._ _- ---. ~. 76.70 95.30 18.60 ~ Description Cons .. Daily Cost vendor I' Mud Checks: 8,433.OftKB, 3/12/2007 21:50 , "z Aldacide G 4.0 663.72 HALLIBU... li, ;Density (Ib/gaq pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) I ENERGY 11.20 9.2 0.200_____ _ 82.0 SERVICES --- - - .. Vis (slgt) Filtrate (mU3l)minj~ Filter Cake (/32") Pm (mUmL) Potassium (mglLj Percent OII (•k) Mutl Loat (Surf) (bbl) -- ~ --- - --- ` _ 65 _ 4.2 2___ 0.220___ 33,999.9.98 _ 1.0 ~Barazan D+ 4.0 634.84 HALLIBU... PV Ovor c - Gel tOs IbNt00f . Sand %) MBT Iblbbl Lime Ib/bbl) pil Water Ratio Mutl Vol Act J ENERGY 1 P) ( ) l ( ( 1 1 ( j (~I) SERVICES ' _ _ 6.000 _ _ 7.5 _ __ _ __ _1.2/98.8 1195.6 ' ~ YP Over (Ibf/10... Gel (10m) (Ibf/100.. Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) POtaSSIUm 6.O 358.141 HALLIBU.... ;°~ _ _ _ 27.000 14.7 10.1 'Hydroxide ENERGY Type Gel (30m) (Ibf/100... T (fl) (°F) Chloridea (mg/Lj HTHP Filt (mU30 . Alkalin (mUmL) Whole Mud Add (bbl) SERVICES - Polymer 30.000 86.0 32,000.002 12.6 ---_ _ Silicate PAC-L 7.0 1,108.80 HALLIBU... (%) Electric Stab (V) Comment _ -_ ___ - _.___ ENERGY Dryjng Shaker Data " - ,.z .~. ~~`~ a~Y. z~ -ru:~~~°- ~ ~bl~' ._ ~,~ ~ ~ t,~ ~ . , SERVICES ., <: ` `.. ~_ '`' -~'" ~`~ "° • ~°- ~ ~' " ~.--k f ~` Barablok 21.0 758.521 HALLIBU... " DescripUon Make Model (ENERGY HG Dryer 1Demck _ 1Derrick ' SERVICES Shaker Screens I ; ' Deck No. Screen No. Scr Sz x (tn) Scr Sz Y (In) ~ 68f0-Trol 22.0 1,397.88 HALLIBU... - , 1 1 200.000 Plus ENERGY 1 2 200.000 SERVICES ~ 1 3 200.000 ~Barofibre 28.0 704.48 HALLIBU... ~. 1 4 200.000 ENERGY -- --- - iSERVICES ' Shaker Checks _. i Dens OF pb/gaq__ _ ___ Hrs {hrs) _ _ - _ _ Baranex 55.0 4,256.45 HALLIBU... .: ' ENERGY ' DescripUon Make Model SERVICES HG Dryer _ _ Derrick __ _ Derrick potassium 72.0 1,172.16 HALLIBU... - --- Shaker Screens !Chloride ENERGY -------- Deck No. Screen No. Scr sz x (In)_ ScrSzY (in) SERVICES _ .- _. 1 _ 1 _ _ 200.000 _ _ `; 1 2 200.000 !Baroid 217.0 2,219.91 HALLIBU... 1 3 200.000 ~ ENERGY ~___ 1 4 200.000 SERVICES Shaker Checks a =,~ n t ~~ *~ ~ w,y; $ Dens OF (Ib/gal) Hrs (hrs) _ ~,t~CiaStng C e „~ ,~ ~,~ <F%~,~ _ _ .. _. -- -_ h c _ _ _- __ __ _ ~ _ _..---_- -~ Date y TYPa --- DescripUon "~~-- --~-~~-- -^-~-~-- Make ----~ ~~~~- Motlel HG Dryer Dernck Derrick Last~BOP C~eck¢ s _.^~, p~a~~ ,;2 ~,~';~ - TaslDate Test Type _ - --...- hakerScreens ` Deck No. Screen No. Scr Sz X (in) _ Scr 5z Y (In) ____.__ -_._, FOrnlatlOn3 _ _ 1 1 _ _ 200.000 _ . --- - -- ------- ; ' i '~ Sample Top 1 2 200.000 Formation Name MD (ftK6) 1 3 200.000 Nanushuk Group 1,072.0 '- 1 4 200.000 __ _ ~ Base Permafrost 1,090.0 Shaker Checks Nanushuk topset sst. 2,380.0 ~~, Dens OF (Ib/gal)___ Hrs (hrs)__. _. .--_____.._..~,.... __ _..TOrOk 2,834.0 r- _ _ HRZ 7,233.0 Drill Strings:, '- = Kuparuk Sandstone Mbr 7,385.0 ` Bit Run Make Bit Inventory Blt Type 'hem Cost 1 J_ j .Upper Kingak (Miluveach) 7,406.0 (ADC Bit Dull ITFA Intl Noz in' BHA ROP ff/hr) ~NOZZIes (132") (ADC codes -Alpine Sandstone $,423.5 ( its ( ~ 1 Conductor Pipe, 1 OO.OftKB . .... _ , ° : ~ Csg Run Date OD (in) Grade Wt (IbsIR) ,...BHA No. ,: Cum De h ~ r ", k . , t pt (ft) SPP (pal) Flow Rate (ppm) ~ TFO Reference ~~Rot HL (70001... Max. Hook Load~(Ibf) 1 /2612007 16 H-4O 65.00 (Surface Casing,,2,115.4ftKB; WOB (10001bf1 Interval ROP (ftlhr) Total ROP (ft/iv) Drilling Time (hrs) Drllltng Torque PU HL (10001bf) Max. Over-Pull (Ibf) Cag Run Date OD (in) Grade Wt (Ibs/ft) - ~ 2/16/2007 9 518 L 80 40 00 Bit RPM (rpm) .Motor RPM (rpm) '.Cum Drill Time (hrs) Off Bottom Torque Torque Units '.SO HL (t0001bf) ~~I71 nt ~ a e ~~'' 7~ ~- .~ - Cmnt D ea ~ Comment ' Hydraulic Calculations _ L__ __ AV.DP (ftlmin),,, AV DC (ftlmin)_,,.._ ._ _._..__~._._.~____-_.. _. Err 1 .".- ', Drill String Comeonents ' _.....__._ -- -- -------_ -....------ ----.--mir- Top Btm Bend Item ~ Density Drift Conn Sz Conn Sz Btm Angle Description Len (ft) OD (In) (Ibs/ft) Grade ID (In) (in) (in) Top Thrd (in) Thrd Cum Len (ft) (°) I I-__ - -1 -1 _ _ _1- - - 1-~--- -L_1-_ _ 1_ __-~__ 1----1- _ _- I _ Report Printed: 3!14!2007 76.70 95.30 pp18.60 BS ,t, s, .... ~ .4.~~i.~, ,~~'~,', ~?~ -,,s, '~~~., »...:x,as' ~'Y,..r....~ .. ~:a , ~ .». '~R~Ni,'~, >r r.,,,i~~' r,:v. lame VS Dir (°) Klck Off Depth (ftK8) ORIGINAL HOLE 0.00 -------- -------- nal Surveys Descrlptlon 2/28!2007 MWD surveys • f;, ~; I ~. i " 2/15/2007 04:30 76.70 95.30 18.60 AF620 35 23,556 ,979.00 2s,55ssls.oo Safety t ~+?;-*~ _ _ _ ,,~ ~ ,,~. - ~ ~~ Target Depth (ttKB)-- Target Formation -- --- Type Date Comment - Safety Highlight 13113/2007~Running Casing _ ' Daly cost rotei -- cum cosi To Date--- Dail Summa Q '` y4 ~~.~ 5 '~ ~~ °'~~' `~"~~' z: 'hrs, "s•" ~ „•' ~~ k 229,169.2 13,250 565.2 3 Weather Lease !Road Conditions _ ____ Wellbore Condition Over (+) /Under (-) AFE I(~/) Var Days ,Daily Mud Cost . Mud Cum To Date ~- -35 No Wind lClearofallSnow /Good L6 1,620.00 320,054.23 __ -- Operations ~ 08:00 _ _ _. _.... _- -..-.- - -------Depth Start (ttKB) Depth End (ttKB) 8,433.0 8,433.0 Operations Thls Report Period ` -"'~'-~ - ------- - --------- Depth Progress (tt) Drilling Hours (hrs) Lay down BHA #4, Pick up Tesco Top Drive, Rig up and run casing 0 00 ~ OperationsNeztReportPerlod -- - - - - ~'~?~ ~` ~ y~~,,-~~;#~"~,~3~ it~~~~~'i n ~ ." Run casing and cement ai_y~~Fol~eman G , .ct~~a;~, t}'r~^~~~A~s Time. L n.. -_-- Job Contact O Cell Phone p w ~ :t +"" °*''* aid ) s ~ '~ t ~z" v 9 ~ .. ;,~~ .moo-., ~,.~?'„~ ...~ ;. w:.~~: ~ .. ?~.: ,~'~~~..:~~ ~' , Start Dur ~ pps scheduled Depth End Time (hrs) Cat Type Phase Ma)or Op Operation Trouble (ttKB) Comment Rlg$:,QOyOr1, AfCtIC IIUOIf - Rig supervisor 00:00 4.00 Delg Planned (Flat Int 1 Drilling (Trip Out No Trbl ' 8,433.0 FLOW CHECK gob Lupton, Rig Manager ' Op i (STATIC) /HOIST I,. TO RUN 7" Mod Pumps: i, Gardner-Denver, PZ-9 CASING /LAY No. Pwr (hp) Rod DI I ' ~Llner3ize in st~000i0 jvoi/stameterpn) - ~ DOWN MONEL -- - - ~ --- •. D.O. ~ ( ) ( ) k OR (bolls... I I STABALIZER ___5 1/2 ~ 9.02. I 0 066 Pump Checks 04:00 5.00 Drlg Planned Flat Int 1 Drilling Handle Tools No Trbl 8,433.0 LAY DOWN & strokes Op DOWN LOAD LWD Pres (psi) 31ow Spd . - (spm) Eft (%) TOOLS/LAY _ I NO_ ~ __~ DOWN MUD Mind Pum 2, Gardner-Denver PZ-9 MOTOR & BIT No. ` ~Pwr (hp) Rod Diameter (in) Op Case & 'BOP No Trbl 8,433.0 PULL WEAR 2 1,000A _ 09:00 3.00 Drlg !~ Planned Flat Int 1 liner size (In) stroke (in) iVollStk OR (boos... I ~ Cmnt BUSHING / 5 1/2 9.02 0.066 ~ CHANGE UPPER --- ------- i PIPE RAMS TO 7", Pump Checks ~ DID NOT HAVE I strokes CORRECT RAMS, i Pres (psq _Slow spd_ _ (spm- _ EH (~,) __ GET OK FROM ~ NO ~ i ~; ,: ~; ~ ~ STATE AND BLM (Shakers: <Descrlption~> - TO PROCEED .Make Model ~? ~ WITH ALTERNATE PLAN. Shaker Screens II Screen ( ) .. i .. .__ __L. _ _.. _._. _ _ ---- ~I Dack No. No. scr Sz X In Sor Sz Y (In) .12:00 5.00 Drlg Planned Flat Int 1~ Case & Run Casing No Trbl 8,433.0 RIG UO TESCO - Op Cmnt CASING RUNNING. ShakerChecks TOOL. Dens OF (Iblgal) Dens OF (IWgal) Hrs (hrs) 17:00 6.00 Drlg Planned -Flat Int 1 Case & Run Casing ' No Trbl 8,433.0 RUN CASING TO Op i Cmnt SHOE - f 23:00 1.00' Drlg Planned Flat Int 1 Case & ' Circ & Cond No Trbl 8,433.0 BREAK Make Modei Op Cmnt Mud 'CIRCULATION AT _ - 1 -- - -. SHOE Centrifuge/Cyclone Checks _..... ~ ,_ - - -" ~ ~ ~ ~ DensityOverflow(Iblgal) Overflow Rate(gpm) `; Mud Checks: 8,433.OftKB, 3/13/2007 14:00 • , Density pb/gal) pH CEC for Cuttings Pf (mlJmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) - .Dens OF (IlNgal) - Underfiow Rate (gpm) 11.20 _ 9.5 0.400_____ _ _ 82.0 j Vis (slgt) Filtrate (mlJ30min) Filter Cake (/32") Pm (mLlmL) Potassium (mg/L) Percent Oil (k) Mud Lost (Surf) (bbl) Hours (hrs) OII UnderFl (%) Dens FD (Ib/gal) ~~ 65 4.0 2 0.500_ 31,000.000 1.0 I PV Over (cp) Gel (70s) (Ibf/100E.. Sand (%) MBT (Ib/bbi) Lime (Iblbol) Oil Water Ratio Mud Vol (Act) (bbl) ! Mud Additive Amounts y ~~ ~ 5.000 7.5 1.2/98.8 -~_--.:.. ~ • _. ~~:. j - - - - - --- --- --- - ---- - ---------; Description Cons... Daily Cost Vendor YP Over (IDf/'10... Gel (70m) (IbfN00... Solids (%) LGS (%) Potymer (ppm) LCM Mud Vol (Res) (bbl) 25.000 14.6 9.6 MUD LAB I 1.01 45.001 I -. I ---------- - ---- - -- --- 'BA. DM 2.0 1,575.00 HALLIBU. °,° Type Gel (30m) (IbfN00... T (fl) (°F) Chlorides (mg/L) HTHP Fllt (mU30... Alkalin (mUml) whole Mud Add (bbl) Tech ENERGY j Polymer 27.000 _ 33,000.000 120 _L. ___- --aServiceiL.. SERVICES .. .:.Silicate.%)___.... ElectrlcStab(V) Comment--.._- ~-------.._.-------- ------------- -------- ~` f ~ Last.Casmg,Chec[c? ' ~" fit, .. ~--Date _-- -. --.____ TYPa___... _..__.._ `: 1 L' ILafft BOP CheckT`'~~"' ~ -`~',`~`~~;~~- , _ ~ Test Date Test Type .. Well Name:: AMAGUQ #2 Job Type: Drilling -Original `. Date: 3/13/2007, Report:.;54.0, DFS: 26.81 Ground Elevation (ft) Orig ~KB Elev (ft) ~~ KB-Ground Distance (k} FOrmatlOnS 76.70 95.30 ~ 18.60 sample Top - ~; Mud Checks: 8,433.OftKB, 3/13/2007 22:00' - Formation Name MD (kK6) Density (Ib/gal) pH CEC for Cuttings Pf (mUml) Calcium (mg/L) q Water (%) Mud t.ost (Hole) (bbl) Nar1UShUk GrOUp 1,072.0 _ 11.20 9.4_ 0.300___ 82.0 !.Base Permafrost 1,090.0 - , Vis (s/qt) - Filtrate (mU30min) Filter Caka (/32") Pm (mUmL) Potassium (mg/L) Pareant Oil (%) Mud Loci (surd robq ! Nanushuk topset sst. 2,380.0 I 65 4.3 _ 2 0.40_0 _ _ 31,000.0.00 LO Torok 2,834.0 PV Over (tip) Gal (1OS) (Ibflt00f... Sand (h) MBT (Ib/bbl) Lima ~1b/bbl) OII Water Ratio Mud Vol (Act) (bbl) '..., HRZ 7,233.0 ' _ 6.000 7.5 1.2/98.8 1196.0 Kuparuk Sandstone Mbr 7,385.0 ,! YP Over (IDf/10... Gel (70m) (Ibf/700... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Ras) (bbl) _ _ 26.000 _ 14.7 10.1 ',Upper Kingak (Miluveach) 7,406.0 ' Type Gel (30m) (Ibf/700... T (fl) (°F) Chlorides (mg/L) HTHP FUt (mU30... Alkalin (mL/mL) Whole Mud Add (bbl)', AlPlne SandStOne 8,423.5 -~,~ Polymer _ 28.000 32,000.002 12.6 ____ ___ _ ___Conductor Pipe, 100.OftKB Silicate (%) Electric Stab (V) Comment Csg Run Date OD (in) Grade Wt (Ibs/fl) 1/26/2007 16 H-40 65.00 Drying~SFia~ke`rbata* '~~~.'~nr.:~'"~,~. ~..~-,a'~._ #Ea _'„., ,.t~~~~~n~:~~*,..k ..~~~^~ x ~.,~,;~:, -~.~~~_~`:Surfiai:e,Casing,2.115.4ftKB Descripton Make J Model Csg Run Date OD (In) Grade Wt (Ibs/ft) HG Dryer Derrick Derrick ' 2!1612007 9 5/8 L-80 40.00 _ _ --- -- i Shaker Screens ~ement ' ~ ~r rF~ I ~?;,~~ ,.. ,, , ... ~t~a~..~ , ~ ~. iE <. , ~,a . Deck No. Screen No. Scr Si X (In) Scr Sz Y (in) CmM Des Comment , 1 1 200.000 :, : 1 2 200.000 1 3 200.000 ~ 1 4 200.0_0.0 _ _ Shaker Checks ', HG Dryer ( Derrick (Derrick I Shaker Screens Deck No. Screen No. Scr Sz X (in) Sc[Sz Y (in) 1 1 200.000 I 1 2 200.000 1 3 200.000 ~ 1 4 200.000 Shaker Checks ~. Dens OF (Iblgal) - Hrs (hrs) ~ :Drill Strings: BHA #4, Motor =vertical ~: ,~ _ ~ _ ~ ~ Blt Run Make Bit Invanto Blt Type hem Cost ~~ 3RR1 Hughes 8 1/tin HCM605, 7101484 PDC _- - - -- ---- 22,833.00 (ADC Bit Dull ITFA (Intl Noz) (in') BHA ROP (tf/br) Nozzles Q32") I (ADC Codes ~ 1-1-NO-A-X-O-NO-TD 0.65 13/13/13/13/13 M 3-2 3 8,433:0 - 8,433.ID ftKB ~ ~ 7, ~+ W BHA No. Cum De h ft SPP pt O (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) 'I 4 3,100.0 425 232 240 _ _ I~ WOB (10001bf) ~ Interval ROP (fflhr) Total ROP (ftlhr) Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) . 20 ~_ 4,500.0 232 ', Bit RPM (rpm) (Moto PRr M (rpm) !Cum Drill Time (hrs) Off Bottom Torque Torque Units SO HL (t0001bQ 345 ~ 125 ~ 2,000.0 Ftlbs 230 _ Hydraulic Calculations ~~, AV DP (itlmin) AV DC (klmin) Err A casing component contains a null value in ID Drill String Components _ - Mu Top Btm Bend Item Density Drift Conn Sz Conn Sz Btm Angle Description Len (ft) OD Qn) (Ibs/ft) Grade ID (in) (in) On) Top Thrd On) Thrd -Cum Len (k) (~) 246 Drill Pipe 7,654.... 4I 14.00 -X95 3.3401 I 4 FH I 4 FH 8,433.00 10 HWDP 310.26 4 27.20 2.750 4 FH ~ 4 FH 779.00 , 76.70 95.30 18.60 Top Btm Mtr Bend ~ Item - Density Orift Conn Sz Conn Sz Btm Anple Jts Description Len (ft) OD (in) (Ibslft) Grade ID (in) (in) Pnl .Top Thrd Pn) Thrd Cum Len (ft) (°) 1 Drilling 22.47 4 2.000 4 FH i 4 ~ FH 468.74 Jars - f y, Hydraulic -. 8 HWDP 248.78 4 27.20 2.750 4 FH 4 FH 446.27 1XOSub. 2.001 6.281 2.SOOL I 4IFH L 41/2IF 197.49_. _J "~ 1 NM FLEX 31.08 6.68 2.880 4 1/2 IF 4 1/2 IF 195.49 i. i~- D.C. _ ' 1 NM FLEX 30.87 6 314 2.880 4 112 ` _ _ IF _ 4 1%2 IF 164.41 _ 4 (.; D.C. 1 1 Stabilizer 5.62 6 314 2.810 4 1/2 IF 4 1/2 IF 133.54 1 MWD (Dir 22.42 6.71 4.630 4 1l2 IF 4 1/2 IF 127.92 991ng) ~, BAT ," 1 MWD(Dir 10.00 6.76 4.880 41/2 IF 41/21F 105.50 ~:: 8 Lo In ) 99~ 9 . i~': TM i. _ - - 1 MWD (Dir - 9.21 - 6.79 - _ ... ..- - - _ 4.560 --- -- _ 4 1/2 IF _ __ 1 -- ._ 4 1/2~IF ---- -, 95.50 & Logging] i PM3 1 MWD (Dir 29.73 6.73 4.630 4 1/2 1F 4 1/2 1F 86.29 I _ & Logging) '` 1 MWD (Dir 27.96 6.76 ' 4.630 4 1/2 IF I 4 1/2 IF 56.56 99ing) ~ IFE 1 Float Sub 2.58 6.8 2.750 4 1/2 IF 4 1/2 IF 28.60 1 Mud Motor ~ 25.02 7~ ~ 1.500 ~ 4 112~IF ~ 4 1/2~IF ~ 26.02 0.00 VS Dir (°) iKlek OH Depth (ftKB) ORIGINAL HOLE 0.00 2/2a/zao7 r. I I' ~' °'' ~: :< ~; ,, ~`• ,> ~, i -~ 211512007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23 5sss~s.oo - ~~~ .:_{ yn+~' fi ~ ~r# ~a ~. I ~ ~! ~ }~~ . e4 ' FY , _' $1, • `Safe ~~ x i~" ~, . r ~" ~ ~ a' ~Q ~Yk e < a ~ ~S • f' "U~ W 'd rP ~~ ,Target Depth (HKB) - - Target Formation --- . ~ . . . ,. r . .x~ ,. ,. . .. u. u >, ~ ..,. aR s.. r.. .. ,, . >. . Type Date Comment /14/2007 (And Freeze leak less than one gallon ACS conducted clean up Safety Highlight~3 ;DauycostTotai cum costrol)ate r. ~,~z ,~ ~a ~~~£~~~ g"N , w ~y~~;,~*K ; ~x/a~v ~ ~ s ~ 340,598.15 13,591 163 3_8_ _ _ Dail Summa :.~ ~.~,.,~,' %-~.+.~~ 2k',..`,~'-~F:.+~kk'."~v;'; '` .: aafvs~.~r`~ ~`#rm'~'~- , . n:. ,,,. .~ i-'s ~.., ..:. ~,.. Y ~ ". . - _ .. . . . .. Weather Lease 1 Road Conditions Wellbore Condition Over (+) !Under () AFE (+1) Var Days ~ ~ / Mud Cum To Date Daly Mud Cost 329 708 76 654 53 9 7 Good -15 No Wind Clear of all Snow . _ , . , - OpereUona @ 06:00 -- - _._- -- _ _ :..Depth Start (ftK6) Depth End (ftKB) Reaming casing to bottom at 8415'. 8,433.0 8,433.0 - -_-__ __ - ..... .____--- __. ____ .-..___-.-...---- --------.- ~ OperaUons Thls Report Period -,Depth Progress (tt) Drilling Hours (hrs) Run 7 "Casing /Formation taking Fluid I While Pumping @ 111 GPM ...returns only at Less than 30% ... !Shut 0 00 Pumps Off Fluid slowly Flows Back ... Total loses While Running 7" Casing at 227BBIs @ 24.00 Hrs ;~ ~.~ ~ ~~~~y~~E ~ ~ ~, ~ HS ~ tnan Contac DaiiyFort: ~ ~~" ~r"' OperaUansNextReportPeriod . , r ; , _ Ceil Phone Job Contact ~ t 7 Continue to Wash Down Csg Thru Mlluveach 8 Land Csg Hanger to Cm ' " _ __ _ amen Harris 21 9401 D (780 6 ' ) .~s .~ G&~ v t~A+'~' R. .x& S,. & m"~ '` r -_ } ~~.~' 7 ; '~ ~T ~ f~:.,^4F.g+~, x Z ~ 4 a 4 Time Lo ~ *Y 4 ~* ~ ~ ~~ ~~ _ ` ~s' ~ ` _' '~ ~° `'~"" `t ` ~.; ''~s~= ~ ~" ~Tµ ~ " €? ~ Completions Foreman Depth Ena opa Scheduied °` start our Darren Harris, (780) 621-9401 Time (hrs) Cat Type Phase _ Major Op Operation Trouble (nK6) comment Completions Foreman 00:00 24.00 Drlg `Trbl /Flat Int 1- Case & Run Casing Lost Circ 1 8,433.0 Lost 12 Hrs . Well ! Cmnt Running Casing Rigs: Doyon, Arctic Wolf; °" ~ Due CO Formation ''..Rig Supervisor ~ Fluid losses While Bob Lupton, Rig Manager Runnig Csg. Had to Mud,Ptirrlps 1,Gardner-Denver, P2-9 ' I ` Run Csg. At 1/2 No. Pwr (hp) Rod Diameter (in) ~ Speed Due to i 1 _ 9_00._0 ~~ ~ILInerSize In Stroke In Formation Taking O (1 VollStk OR (bolls... ~ Fluid while Running',` 5 1/2 9.02 in Hole With Casing Pump Checks ~` /When Btms Gas strokes i t0 10000 Units Had pros (psq _ slow spd _ (spm) EH (%) ' To Shut in To 450.01 No 441 Record Pressures Mud Pumps; 2, Gardner-Denver, PZ-9 oas a Precaution, 'No. Pwr (hp) Rod Diameter (In) Not Knowing the 2 900.0 j Exact Size of Gas -Liner size (in) stroke (ln) ivoustk OR (bolls... Bubble due to Fluid 5 1/2 9.02 Loses .... Continue ,.....-- _ _ i ____ to Circ. at Slow 'Pump Checks I Rate & Work Csg. strokes To Btm Last 120 _ Pres (psi) Slow Spd (spm) Eff (%) _ __'-- - 4,275.0, No ~ 95 ~M kekers: <Descripti'on?> ` ~ del 8,433.QftKB d "' 3114/2007 11 3 ~MudChecks: ~ Pf(murnL~~ ....:~ ;; , ~' ------------- . Density (Iblgai) pFl cec for cuttings Shaker Screens Calcium (mg/L) °/ Water (%) Mud Lost (Hole) (bbq , _ 11.25 9.0 0.150 200 000 81 0 291 2 I~ screen Vis s/qt) (mU30min Filter Cake (/32") Pm (mUmL) Potassium m /L) Peresnt OII (%) Mud-Lost (Surf) (bbl LDeek No _ No. _scr Sz X (in) Scr Sz Y (In) ( Filtrate ) ( g ) 72 4.2 2 0.150 28,999 999 2.0 --~- 1- -~ -- --- PV Over (cp) Gul (tOs) (Ibf/100f... sand (%) MBT (Ib/bbl) Llme (Iblbbl) OII Water Ratio Mud Vol (Act) (bbl) Shaker Ct1eCkS $,000 7.5 2.4/97.6 1216.0 I Dens OF (Ib/gal) Dens l1F (Iblgai) Hrs (hrs) ~~~~ YP Ovar (Ibf/10... Gel (10m) (Ibf1100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 25.000 14.7 9.6 ~ ` '~ ~~- ~ ' ` Type Gel (30m) (Ibf/100... T (fl) (°F) Chlorides (mg/L) HTHP Filt (mU30... Alkalin (mL/mL) Whole Mud Add (bbl) Maka Model ` Polymer 32.000 32,000.002 12.6 _ _ ~_ __ __ Silicate (%) Electric Stab (v) comment ' CentrifugelCyclone Checks Density Overflow (Iblgai) OveAlow Rate (gpm~ ;Drying.$haker,Data .. ..~a? 5'~k~.a,..:":~ ~ ~ ~~ s,~.~,4 ,.: .~~.~ :: , ~~ ~, ~'~.'----- - Description Make Model -Dens OF (Iblgai) Underflow Rate (gpm) HG Dryer_ __ Derrick _ _ (Derrick _ _- 'Shaker Screens 'Hours (hrs) Oil Under FI (%) '.,Dens FD (Ib/galj Deck No. Screen No. Scr Sz X (In) Scr Sz Y pn) _ _ 1 1 200.000 Mu"tl Atlditive.~rtloun~ yw>,~~~ g~,~A_'" ~. 1 2 200.000 ~Descriptionµ~ Cons... Dally Cost Vendor 1 3 200.000 MUD LAB 1.O) 45.001 BA. DM 2.0 1,575.00 HALLIBU... 1 4 200.000 Tech ENERGY -- - - -- - ---------- - -------- Shaker Checks .Service/L.,. SERVICES Dens,UF(Ib/gal)-.-_ Hrs(hrs)_ .. '.." -_.- -- -- Barazan D+ 10.0 1,587.10 HALLIBU... - - -- - --- ---- - ENERGY ~cription Make Model ~f"G Dryer _ - Derrick __- Derrick _ SERVICES ---- ShakerScreens _ Potassium 41.0 667.48 HALLIBU... Deck No.-- - ~ Screen No. scrSzX (in) ScrszY{inl Chloride ENERGY ----- 1 _.._ _.---------------1 200.000 SERVICES _ _1_ -~------ ~-------- ,~ - _ ,, ~~ _ Report Printed: 3/15/20 76.70 95.30 18.60 ` Description '~ cons . natty cost , - vendor - Shaker Screens Baroid 7565.0 5,779.95 HALLIBU... Deck No. Sereen No. Ser Sz x (In) __ 5cr 5z Y_pn) . I ENERGY _..._ - -- -- _ - -~:.- _ _ ------_ - 2 --. -------- 200.000 -- -- ~ SERVICES ' 1 3 200.000 •` ~ ~ & , 1 4 200.000 f.as~~CastngCheck~?;~,txst~ti~~ ;Pt~.y~,d - ' -'-~ - Date Type Shaker Checks _ Dens OF (Iblgaq Hre (hrs) _ I _ ILast_;BOP Check""~`'~' " °)~ ~~( i . ' ~ 7 h ~ j ~ r~ ~Y T 1 ~ ~ z*` "r ~, c ~ 's'~t"f,? 3 TCSt Date - - -Test Type _ . Drying Shaker Data. ~ ~'~ ~M,.-~.~ °. ~~ ;«~-~:~~°:~. ~ ,_ ~ ._-~. t .~. ~ ~.a„~~: 11 -- Description Make Model ,__-_.__._-__--_I- -____-_- HG Dryer _ Derrick Derrick Formations - - --- - - - - - -- Sample Top Shaker Screens Formation Name MD (ftK6) I- Deck No Screen NO. Ser Sz x in) ___~ ___ ScrszY pn) _ -_ __, NanUShllk GrOUp 1,072.0 1 1 200.000 1 2 200.000 .Base Permafrost 1,090.0 I! 1 3 200.000 Nanushuk topset sst. 2,380.0 1 4 200.000 Torok 2,834.0 - _ - -_ __ -- - ---- - - _ _ -- - --- -- -----' HRZ 7,233.0 Shaker Checks - Dena uF (ib/gal) Hrs (nre) Kuparuk Sandstone Mbr 7,385.0 I Upper Kingak (Miluveach) 7,406.0 Drill Strings: J Alpine Sandstone 8 423.5 Bu Run Make Bninveneory ~ ~ sn~Type ~ ~ ~ °iiemcost ~ ° ~ (Conductor_Pipe,:100.OftKB ;~ '~ Csg Run Date OD (in) Grede ~ Wt (Ibs/ft) ' IADC Bit Dull TFA (Intl Noz) (In') BHA ROP (ft/hr) Noales (/32") IADC Codes -~, 1 /26/2U07 16 H-40 65.00 ..; _~Stirface Casing 2 115 4ftKB ' ' `-- -- " =-A, - ~ ~ ~;'~ Csg Run Date ~OD (In) Grade Wt (Ibslft) BHA No. Cum Depth (ft) SPP(psi) Flow Rate (gpm) ~ TFO Reference Rot HL (10001. Max. ~HOOk Load (I4F) 2/16/2007 9 5/8 L 8A 4Q 00 --- Cie111~11~a,~-``~~t`~-~,')c~,X~st)3~w;P.r ~;i .... t.. .~- ~ WOB (10001bf) Interval ROP (ft/hr) Total ROP (Pohr) Drilling Time (hre) Drilling Torque PU HL (10001bf) Max Over Pull (Ibf) Cmnt Des Comment - -- _ _ __ -- - - - I -- - - tRPM (rpm) Motor RPM (rpm) Cum Drill Tlme (hre) OH Bottom Torque Torque Units SO HL (10001bf) _-_. _ -~ - _ __ --1---- l _ ydraulic Calculations AV DP (ftlmin) AV DC (ft/min) Err _ _ _.1 ------_ - ----- -- - --, Mtr Drill String Components ~, ..... ~~.. Top etm Bend Item ' Density Drift •. Conn Sz ~ Conn Sz $tm ~ Angie Jts Description Len (fti OD (inl (Ibs/ft) Grede ID (in) (in) (i^) Top Thrd PN Thrd 'Cum Len (ft) (°) ORIGINAL HOLE nal Surveys Descrfp 2!2812007 MWD Dlr (°) Klek Oft Dapth (ftK6) -- 0.00 - - ---- - ----- -- Job Type: Drilling -Original _, ~` "Date: :3/15/2007, Report: 56.0, DFS: 28.81 ~b Spud Date Rig Release Date Ground Elevation (ft) Orig KB Elev (ft) ,KB-Ground Distance~(ft) AFE No. Total AFE~Amount Total AFE+Sup 2115/2007 04 30 76 70 ~ 95 30 18 60 AF62035 .23,556,979.00 23 ssss~s.oo - __ ,.; _ - - - - ---- ~Saf@ty.'' . ~~I ...,~~Ir... "+..,~_'~,~h~.~;, _.~,~ n~1, W=~:,+..:'`~...a:,~i5~x ~,u'~x'~i3zrvrG »ti~G...4-,,~~` ai(,.TergetDepth(ftKB) Target Formation Type Date Comment ___ _ _ _ _ _ _ _ _ _ ----_ ' Safety Highlight 3/15/2007 Laying down Tesco casing running tool. - _ "-~ ~ oaijy cost roiai cum coati To Date _-- +. , ~?~ 202,495.25 13,768 958.63 ;Daily Summary s ,~ ~z ~s,~r,~a~6~~~ae6.~.`~!:~ ~ ~ ~`~ ~~y~~c.~°~,.{,~~y'.~ ~,~~!~~° --- ---------- ----- ----- ~ ~ ~s,-~, ~""~ •"~ '~ Dai Mud Cost Mud Cum To Date Weather Lease I Road Conditions Wellbore Condition Over (+) I Under ()AFE (+I) Var Days ry -20 No Wind Clear of all Snow Good 7 7,541.25 337,250.01 `Operations ~ 08:00- _ _ --- - _.. --_-- _ _.._ _ _ .............. __..... -_ ... -----------..._.. Depth Start (ftK8) Depth End (ftK6) Make up BHA, RIH 8,433.0 8,433.0 Operations Thls Report Period_ .......... ...----......- - ---._-_._ _ ..---.-----...-- -----...-_-. -----_-- _...--------.- ...-...Depth Progress {ft) Drilling Hours (hrs) Run casing and cement. 0.00 i O rations Next Re rt Period - - ~ ~ s ~t ~ y d PB Po ,' M1t lay down Tesco Plck up BHA RIH ~Dai ~~Foreman Contact,,,, .,, Set FMC pack off i- --^-;~-~--°- ~°- i ~ ., ~, ~-;.~- ~~~~, Job Contact Cell Phone '~~4 ~ ;~~,~_, ~„~" ,~ s~ , n ~„ ~`' ~ ' ` ~ r' Mike Ross, Drillin :Time Lag ° , .~ .faro . ,.- . a_ ,... A_ _-.. rx ..- . u~.,, ,. ~,~~~ ff. ~_•~ ~r.~.~ 9 Start Dur Ops Scheduled Depth End Foreman ~ Time (hrs) Cat I Type Phase Major OP Operatlon Trouble (ftKB) Comment Mike Ross, Drilling 00:00 10.50 Drlg iPlanned IDrIg Prod Case & (Run Casing -Hole 8,433.0 REAM T CASING Foreman iOp Cmnt Cleaning 8395' TO 8433 I .... ' 10:30 0.50 DrlgPlanned ~Drlg Prod Case & /Run Casing No Trbl 8,433.0 LAYbOWN ONE Rigs: Doyon, Arctic Wolf Op Cmnt JOINT OF CASING Rig Supervisor AND PICKUP Bob Lupton, Rig Manager j LANDING JOINT. Mud Pumps: <No.?>, Gardner-Denve... _ _ _ _ No. Pwr (hp) jRod Diameter (In) :11:00 2.00 Drlg ~PlannedlDrlgProd Case& ~RunCasing NoTrbl 8,433.0 CIRCULATE 900.0 I Op i Cmnt 4- - --- BEFORE CEMENT toner size tht stroke jGj valsdc oR (bbus... I JOB, _ I 9.02 _ _ -- 13:00 2.00; Drlg (Planned Drlg Prod Case & Run Casing No Trbl 8,433.0 PERFORM FIRST pump Checks Op ' Cmnt STAGE OF strokes CEMENT JOB. Pres (psq slow spd (spm) Eff (%} 15:00 4.00 Drlg Planned! Drlg-Prod Case & ~ Run Casing tVo Trbl 8,433.0 WAIT ON CEMENT i NO ~ I p Cmnt Mlad Pum 1 Gardner Rod Diameter(in) O I ~ -_. _ ~ No. 1 (900.0 Denver; PZ-9 ~:00 2.00 Drlg Planned Drlg Prod Case 8 Run Casing No Trbl 8,433.0 PUMP SECOND li Op Cmnt STAGE OF Liner Slze (in) Stroke (In) ,IVoVStk OR (bbl/s... CEMENT 5 1/2 „ 1 9.02 ' -.21:00 3.00 Drlg (Planned IDrIg Prod (Case & Run Casing No Trbl 8,433.0 RIG DOWN ~Op I Cmnt CEMENT HEAD, Pump Checks ' i SET PACK OFF, Pres (psi) Slow Spd _ (spur)s Eff (q_) RIG DOWN T No ~ I TECSO. i M P mps: 2, Gardner-Denver, PZ-9 MudChecks:8,433.OftKB,3115)200723:30 ~ ~'~~!=" ~ ~ ~ No. Pwr(hp) Rodoiameter(In) ., =,~ Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (% )~ "Mud Lost (Hole) (bbl) 2 900.0 11.20 8.8 0.100 180.000 81.0 Liner Size (In) Stroke Qn) - VollStk OR (bbl/s... I; Vis (slgt) Filtrate (mU30min) Filter Cake (132") Pm (mUmL) Potassium (mg/L~ Percent Oil (%) !Mud Lost (Surf) (bbl) _ 5 1/2 i 9.02 65 _ _ 4.4 2 0.100 1.5 PV Over (ep) Gel (tOs) (IbU100L.. Sand (%) MBT (Iblbbl) Lime (Ibrobp OII Water Ratio jMud Vol (Act) (bbl) PUm Checks Strokes 6.000 0.2 _ 8.0 1.8/98.2 I ~ Pres (pap slow spd (spm) Eff (%) 'i, ` YP Over (IbN10... Gel (10m) (Ibfl100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) '. NO ________ 25.000 15.4 11.2 ____~Shakers: <Descrlptlon?a ' Type Gel (30m) (Ibf1100... T (fl) (°F) Chlorides (mglL) HTHP Filt (mU30... Alkalin (mUmL) Whole Mud Add (bbl) ,Make Model Polymer ___ 27.000 _ _ ___ _ 29,999.999 12.8 -- -- - ~ .Silicate (%) Electric Stab (vj Comment _- --- __ Shaker Screens _ _ ._....__. .. _ -._ . -.. --- ---- -....._.. -- - --------- --- - J Screen Mud Checks: 8,433.OftKB, 3/15/2007 23:30 `' :. '` :" ; *? ~ . , Deck No. No. ser sz x pn) ' scr sz Y (In) Density (Ib/gal) pH CEC for Cuttings Pf (mUmL) ~ Calcium (mg/L} % Water (%) Mud Lost (Hole) (bbl) _ I-__..- .._ -- __ -I_. _ 11.10 9.0 0.260 180.000 82.0 144.8 Shaker Checks ~ - i Vis (s/qt) Filtrate (mU30min) Filter Cake (/32") Pm (mUmL) Potassium (mglL) Percent OII (N.) MUd Lost (Surf) (bhp i Dens OF (Iblgap Dens OF (Iblgal) Hrs (hrs) 67 4.4 2 0.500 1.5 PV Over (cp) Gxl (10s) (IbU100f... Sand (%) MBT (Ib/bbl- Lime (ib/bbp Oil Water Ratio Mud Vol (Act) (bbQ _ 7.000 0.2 8_.5 1.8/98.2 1119.2 _Make MOdei YP Over (Ibf/10... Gel (10m) (Ibf1100... Solids (%) LGS (%y - Polymer (ppm) LCM Mud Vol (Res) (bbl) 28.000 14.9___ 11_ .0 _ ~ --" -- L----- -- ----- Type Gel 30m Ibf/100.. T fl F Chlorides m !L HTHP Filt mU30... Alkalin mUmL Whole Mud Add bbl-C@ntrlfUO@/C r~CIOn@ CheCkS - _ _ ( ) ( {) (°) -- ( g ) ( ( ) ( )Density Overflow (Iblgal) Overflow Rate (gpm) Polymer 31000 _ 28,999.999 13.4 Silicate (%) Eloctric Stab (V) Comment Dens OF (ib/gal) Undertlow Rate (gpm) ~ :~.- . Ing;$hak@r Data, ?d~h_s'?-.-~At'i` _. :r ~ ~ ~~`~~~ ~ Fx ~ ~ "~~a ,~.„,~~ r Hours (hrs) Oil Under FI (%) .Dens FD (Ib/gap ripdon Make Model :.; Dryer _ Derrick Derrick Mud Add(tNe Amounts ~r `" :. _ ',sta.. .~..e~.: Shaker Screens _Descriptlon Cons . Dally Cost vendor Deck No. Screen No. Scr Sz X (In) Scr Sz Y (in) MUD LAB- I 1.OI - - 45.00 ~ - -?1 -- 11 200.00 -- - _ _- - _ _ --- 1 '. ~ ., ~ " - to Report Prin d: 4/2/2007 Ground Elevation (ft) Orig KB Elev (ft) KB-Ground Distance (k) Mud Additive Amoiintsm~,~a ~ ~` ~ ~' ' 76.70 95.30 ~ 18.60 ° ~' Y"'""' '~'""" ' '. . __- ____ _ _ __ Descrlptlon Cons... Daily Cost Vendor - - -- Shaker Screens BA. DM 2.0 1,575.001HALLIBIJ... Deek No. Ser_ee_ n No - Scr Sz X (In) _ Scr Sz Y (In) _ _ Tech ,ENERGY - 1 2 200.000 ServicelL... I, ~ SERVICES 1 3 200.000 CiricAcid 4.0 432.32~HALLIBU... _ 1 4 200.000 ENERGY j; Shaker Checks SERVICES Dens OF (Ib/gal) Hrs (hrsi - - - ---- - -- - Barazan D+ 5.0 793.55 HALLIBU... : , . R, a ~ wa ~ x ~ c `zze €r^ J , r. ~ ENERGY `D Sh"aker;Data ~ra. ~~# ~.~~~~~ .~ ..F . "~ v~~ "~ ~ ~~s~i~s~r~ i~ ~ <~ "`~!', rYlln9.., . ~ ~ ~ SERVICES Description Make Model _ -.. HG D er _ Derrick Derrick Bicarbonate 7.0' 194.18 HALUBU... ry- --- -- -- --- - of Soda ENERGY -.: Shaker Screens ' Deck No. Screen No _ Scr Sz X (in) - _ ~ Scr Sx Y (in) SERVICES 1 1 200.000 Baroid 440.0 4,501.20~HALLIBU... ! 1 2 200.000 ENERGY 1 3 200.000 SERVICES is 1 4 200.000 ~`°~~ ~r~w~; ~ ~~~ ~ ~;~ - _- - __ _ _ ---- - ---- -- l.astCasm Check` ~C~_ "a"~." ' Shaker Checks ~~~ I ( 9 1 - Hrs (hrs) _.... _.. Date ~ _ TYPe _ ~ '. -----------_ DensUF Ib! al ~ ~ ~ i Description Mak~ Modal Last BOP Check~,%~~~`"~,„;~ ~ ~) ;~~: ,_ HG Dryer Derrick Derrick ~ _ Test Date Test Type --- - ---- Shaker Screens _ _ Deck No. soreen No. ~ scr sz x pn) scr sz Y (ln) Formations __ _ __ 1 1 200.000 < sample Top ~ 1 2 200.000 Formation Name i MD (kK6) Nanushuk Group 1,072.0 1 3 200.000 Base Permafrost 1,090.0 i 1 4 200.000 Nanushuk topset sst. 2,379.0 - - j Shaker Checks Torok 2,950.0 ! Dens OF (Ib/gaq Hrs (hrs) TOfOk Sand 1 7,180.0 ~iIlStrings: ~ ~-- ~ ~ ~: „ ~ .HRZ 7,233.0 _,~ BleRon IMake 1eittnveneory IBitl'ype Ikemcost ~,KuparukSandstoneMbr 7,406.0 _ _ fI Upper Kingak (Miluveach) 7,619.0 `IADC Bit Dull TFA (Intl Noz) (fn'- fBHA ROP (fUhr) Nozzles (%32") IIAIk C°dea ,Alpine Sandstone 8,424.0 ~ I ' BCU (Base Cret. 8,490.0 ', ~ F ~,~~ ~~~ ": `Unconfarmity) i; BHA No. 'Cum Depth (ft) SPP (psq ~ Flow Rate (gpm)f~~ TFO Rehronca ~ROt HL (10001... Max. Hook Load (Ibf) Conductor Plpe,;100:OftKB i WOB (10001bf) Interval ROP (tt/hr) Total ROP (ftlhr) Drilling Time (hrs) Drilling Torque PU HL (70001bf) Max. Over-Pull pbf) Csg Run Date OD (In) Grade Wt (Ibsfk) ----- - - -- 1 /26/2007 16 H-40 65.00 ' ' Bit RPM (rpm) ~ Motor RPM (rpm) Cum Drill Time (hrs) Off Bottom Torque Torque Units 30 HL (10001bfJ S ~ S grface Casing, 2,115.4ftK6 i- -- - - ---- -~ ~- --~-_ ~ ---- Run Date OD (In) Groda Wt Qbs/k) i Hydraulic Calculations 2/16/2007 9 5/8 L-80 i 40.00 ;- AV DP (klmin) AV DC (k/min) - Err - ~ - ... - . - - _ - - Intermediate Casing,8,423.OftKB: - - -- ~ - _ -- ---- - - - -- - Csg Run Date OD (In) Grode Wt (Ibs/k) Drill String Components _ _ 3/15!2007 7 L 80 ~ 26 00 Top Btm Bend Cgm,nt~~.'~~~.~~.~.~r~ ~ ~.,+.,,,..~: t: I~ Item Density Drift Conn Sz Conn Sz Btm Angle Cmnt Des Comment Jts Descrlptlon Len (ft) -. OD (in) (Ibslft) ,Grade - ID (in) (In) - '. (in) ~: Top Thrd (In) ThrtlA Cum_Len (k) _O __ Intermediate Perform tW0 StBgl? ~ _ Casing cement job on 7" h, snF° ,.". ,~ r~ cn ~~ty'~~. yi,~.r~ y +:('^ ~ g' .. ~^jr° #'°°o„~ ~' E,I' s ~r ~ .- ,~, ~. ~, ,,i~ CaSln I -_~elfbOrl;B , .. ~ a :c. r. i ~... tr ... -.i. ~ "wu~,"krit~~O ~~,~t~ s~f`h"~'~~'p (~~r*`'s.~ ~ ~ ~~~'•~'~., .~' ---.._.._.._.. g-'-'--- ~- '---'-- ~~ Wellbore Name VS Dlr ° K k Off De th ftKB ~'~ ORIGINAL HOLE 0.00 _ __ --- - _ __ --- ---- ~ Directional Su_rv_eys __ Date Descrlptlon 2/28/2007 MWD surveys --- - II '~ r ` "' ~ ~ ` ~ Rt:port Printed: ' 4/2!2007 _ .. *` - ". 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23.556,979.00 - ,: ,.. - ' "" ~' ,,~ Target Depth (flK8) Target Formation Y ~~ f' s;_. rf .,:fix....`.- 3. ~:.a '~. C-.,.y. -~ o .~.Na- ,,mr ,.; .. da.' _- ~,. ...-. .; ~. ... ..,, Tvee Date CemmaM vreamer Lease ~ rcoaa t,omm~ons wenoore conmuon ever p/ t unaer t-/ art ty-/ vat uay 0 F 10mph Wind Clear of all Snow ,Good 7 Operotlons Q 08:00 Drill ahead 6.125 Operatons This Report Period Pick up BHA #5, RIH /Drill out Stage Tooll Lower Mud Properties Back to #9.4 Drill Out Float Clr. & Pressure Test Casing Too 2500 psi for 1/2 Hr. Operations Next Report Period DRILL OUT 6.125" Hole Hoist to TD Hoist to Log Hole Time Lo ~,,, x~ 341,124.27 ~ 14,110,082.90 8,433.0 rogress (f 0.00 8,433.0 Foreman Start Dur ops Scheduled Depm Enri Mike Ross, Drilling Time (hrs) Cat type Phase _ - _ Mayor Op operation - _ trouble (flK8) _ _ comment ,Foreman . 00:00 1.50 Drlg !Planned Drlg Prod Case 8 Run Casing No Trbl 8,433.0 LAY DOWN Op ~ Cmnt TESCO CASING ~ Rigs:' Doyon, Arctic Wolf ~ RUNNING TOOL Rig supervisor ~ _ L _ __~ _ ..._ Bob Lupton, Rig Manager 01:30 7.00 Drlg Planned Drlg Prod Drilling Trip In No Trbl 8,433.0 PICK UP BHA #5 Mud Pumps: <No.?>, Gal Op No. Pwr (hp) 108:30 1.00 Drlg Planned ~ Drlg Prod I Drilling BOP- No Trbl 8,433.0 TEST ANNULAR 900.0 Op ~ PREVENTER TO Uner size pn) Stroke (lo) 2500 PSI 9.02 09:30 6.50 Drlg Planned Drlg Prod Drilling Trip In No Trbl 8,433.0 RIH TO ES Pump Checks I! Op CEMENTER stn 16:00 2.00 Drlg j Planned Drlg Prod Drilling Drill - Cmnt No Trbl 8,433.0 DRILL ES i ?res (psq _ slow spd (sl iOp CEMENTER I NO COLLAR Mud Pumps:,i, Gardner- g Drig Prod Drilling Rig Repair / No Trbl 8,433.0 WORK OtJ-TOP No. Pwr (hp) 8:00 1.00 Drl ITrbl3rd II I 1 900.0 Party Service DRIVE, PROBLEM Liner 31ze (In) - 1Stroke (In) FIXED 51/2 ~ 9.02 19:00 1.00 Drlg Planned i Drlg Prod i Drilling Trip In . No Trbl 8,433.0 RIH TO STOP pump Checks 0p _ l I I COLLAR AT 8335' ~ stn 20:00 1.00 Drlg Planned Drlg Prod Drilling brill - Cmnt ~No Trbl 8,433.0 DRILL SHOE ~ Pres (psi) slow spd (sl Op TRACK 8335' TO ~ No 8378' Mud,Pumps: 2, Gardner- '.. 21:00 3.00 Drlg 'Planned ~~ Drlg Prod Drilling ~ BOP No Trbl ~ 8,433.0 TEST CASING TO NO' 2 Pwr (900.0 Op I ! 2500 PSI FOR 30 liner size pn) stroke pn) I MINUTES 51/2 9.02 Mud Checks: 8,433.OftKB, 3f16/2007~12:30 - ---`----- Density (Ib/gal) pH CEC for CuCings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) ,Pump Checks 9.70_ 10.8 ( 0_.250 _ _ _ 240.00) 90.0( __ ( ~ (~I~ ' stn Vis (s/qt)- Filtrate (mU30min) Filter Cake Q32")~ Pm mUmL) ~ ~ - Potassium m L Percent Oil ~%) Mud Lost su -I Pros (Psi) Slow Spd (sl 55 5.9 2 1.000 32,000.002 1.0 No `~PV Over(cp) Gel(t S )000100( .. sand (O)O ~ _ MBT (Ib 510 ~ - -Lime-(Ib/bbq - -~-Oil 1 a~ ~98 t~lo Mud Vol(ACt) (bbl)) Makekers-,,<Descrlpti,Mode'~ YP Over (Ibf/10... Gel (10m) (IbU100... solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl 1 Diameter (In) EI (In) Eff Eff (%) 22.000 6.7 __ _ 5.3 _ _ __ _ _ Shaker Screens -- ---- _ Type Gel (30m) (Ibf/700 T (fl) (°F) Chlorides (mgtt.) HTHP Fllt (mU30.. Alkalin (mUmL) Whole Mud Add (bbl) ~ Screen I Polymer 24.000 28,999.999 17.5 Deck No. No. Scr sz X (in) Scr Sz Y (in) move, ' silicate (%) ElecMc stab (1/) ' Mud Checks: 8,433.OftKB, 3l Density (Ib/gal) pH 9.45 9.0 Vis (s/qt) Filtrate (mL%30min) S0 7.6 '. PV Over (cp) Gel (10s) (Ibf/100E.. 6.000 YP Over (Ibf/10... Gel (10m) (Ibf1100... 17.000 Type ~ _ - Gel (30m) (Ibf/100... ~Iymer 20.000 0.000 ;eke (/32") Pm (mUmL) 2 0.330 ''/o) MBT (Ib/bbl) 0.0 4.0 ~,~~ -- - LGS (%_ ---- 5.2 --.- 4.1 F) Chlorides (mg/L) --`-.--. __ . ~_. -_- ---... _I_------ r Checks (Ib/gal) Dens OF (Iblgal) Hrs (hrs) 320.000 I 92.0 tassium (mglL) Percent Oil (%.) Mud Loat (Surf 27,999.999 0.5 102.3 ne (ib/bbl) Oil Water Ratio Mud Vol (Act) I 0 .5/9 9 . 5 1 1024.: _ _ lymer (ppm) _ . _ _ - LCM - ---- Mud Vol (Res) HP Filt (mU30... Alkalin (mUmL) Whole Mud Ad 18.3 Model Derrick 28,999.999 Drying Shakelt~Data ~; .. ,.:'~: ~ ~a_,,.:.~ ~. _.` '. Descriptlon Mal HG Dryer De Checks 1 r. r ...:_ _: - COST .. 76.70 95.30 18.60 Description Cons Dally Cost vendor ~ ;Shaker Screens ' BA. DM ~ 2.0 1,575.00 HALLIBU... Deck No screen No. scr Sz X (In)- __ _ Scr sz Y (In) - ~ Tech ENERGY 1 1 200.000 'Service/L... I SERVICES f 1 2 200.000 Baracarb 20.0 495.40 HALLIBU... 1 3 200.000 150 ENERGY 1 4 200.000 SERVICES I --- - _ - ------- __ - ----- - _ _ _ ------ -------------- . _. !Shaker Checks Baracarb 50 20.0 376.40 HALLIBU... Dens OF pb/gaq ------ _~_~_.___~ __.__.___-----~-_.__.Hrs (hrs)-------- ENERGY I - - - ~D In Shaker Data °~" &~'"~~"~ ~ ~ t,a,i~.~~c~~gn..~,,.. ~ ~ , s' Y~ ~ - ~° ~+ ~ ~, SERVICES rY g " s ~~.~[.. ,-~~+~, ~ ~ M k _ ~ a ~-~~r odei `~t'~~,~'"~ s ~~'K. Descript3on~~` -" '~° ~'~ Baracal'b 25 20.0' 389.60 HALLIBU... i HG Dryer Derrick _ _ Derrck ~ ENERGY ~ Shaker Screens SERVICES beck No. screen No. scr sz X pn) Scr Sz Y (In) Barazan D+ 37.0 5,872.27 HALLIBU... 1 1 200.000 ENERGY I 1 2 200.000 SERVICES 1 3 200.000 Baroid 42.0 429.66 HALLIBU... 1 4 200._000 ENERGY '`'`Shaker Checks SERVICES Dens uF pWgaq Hrs (hra) _ Barofibre 54.0 1,358.64 HALLIBU... ENERGY ~;:: Description Make Model ~ SERVICES _ __ HG Dryer Derrick Derrick Shaker Screens Potassium 246.0 4,004.88 HALLIBU... Chloride ENERGY i Deck No. Screen No. Scr Sz X (in) Scr Sz Y (in) SERVICES 1 1 200.000 - ~ 1 2 200.000 Baranex ~ 3.0 232.17jHALLIBU... 1 3 200.000 ENERGY 1 _ 4 200.000 SERVICES Shaker Checks ~~"~~~~ ~~~~° t ~ ~ ~~ Y,,,: I.asfiCasing;Check~-~~~- ~~~.. Dens OF (Ib/gal) Hre (hrs) _ _ e _ _ _ _ _- _ .._ _ ~T _ _ - lags B Check~`~,`f~ Type ;, Drill Strings: BHA #5, Motor vertical ~ ~,at ,~. r 5 Bit Run 'Make Bit Inventory ~ ~ ~ Bit Type • them Cost r OP °_ ~ ~- -„ ~; za. °." ~" ~ ^a'• 4 Hughes 6 1/bin, STX-1 , 5117049 Mill Tooth ~ 7,233 00 L-~ Tess Dare __ ro_stType _ ---~_ _- -- - - -- - -- - -- 1 - IADC Bit Dull TFA (Intl Noz) (in') ?BHA ROP (ftlhr) Nozzles p32") ~IADC Codas ~ - 13-3-WT-A-E-O-NO-TD l 0.45 I 18.6 14!14/14 I 1.1.7_ Formations --- Sample TOp 1..8,433.0 - 8,433.0 ftKB ' Formation Name MD (ttlce) `: BHA No. Cum Depth (fl) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Its ', NanUShUk GrOUp 1,072.0 5 I -_ - _ -_ - _ - Base Permafrost 1,090.0 WOB (100016f) 9nterval ROP (Pohr) Total ROP (ft/hr) Drllling Tlme (hrs) Drllling Torque PU HL (10001bf) Max. Over-Pull (Ibf) NanUShUk tOPSet Sst. 2,379.0 -~ - - --- ------- - 0.00 __ -- ---- ------ -Torok 2,950.0 Bit RPM (rpm) IMotor RPM (rpm) -Cum Drill Time (hrs) OR Bottom Torque TTorque Units 50 HL (10001bf) _ --- - . - l.- -- ---- --- -- --_ --- - _ ~_ I __ Torok sand 1 7,180.0 1 -- - - - ~- --- - HRZ 7,233.0 ~-Hydraulic Calculations AV DP (tUmin) Av Dc (tt/min). err _ _ _ _ Kuparuk Sandstone Mbr 7,406.0 I A casing component contains a null value in ID Upper Kingak (Miluveach) 7,619.0 8,433.0 - 8,433.0 ftKB r `Alpine Sandstone 8,424.0 BHA No. iCum Depth (tt) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) ' BCU (68Se Cret. 8,490.0 5 ----I----------- ------ ___ __ _ __ Unconformib) ~;. WOB (100016f) llnterval ROP (it/hr) Total ROP (fUhr) Drllling Tlme (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibf) Bit RPM (rpm) 1 Motor RPM (rpm) ,Cum Drill Tlma (hrs) OR Bottom Torque Torque Units SO HL (t0001bf) Conductor..,Fipe,°1 OO.OftKB !: .~; .. ;> .~ ' ~', Csg Run Date OD (in) Grade Wt (Ibsltt) ---` ------ ----.._ ...---... _....----...- - ------ ----- ---- - 1 /26/2007 16 H-40 65.00 Hydraulic Calculations av DP (wmin) Av Dc (rtlmin) err ~urtace using, 2,115.4ftKH ~~ -.. - -- __ -.._.. ...: _.--._. .._... _.._ ___._ _ ...._ - ---...:-- - Csg Run Date OD (in) Grade Wt Ibs/ft - alns anull value in ID ( ) cash componen con - -- I - -- g - 2116/2007 9 5/8 ~ L-80 40.00 ~ Drill String Components , > • - Mtr Intermediate Casing, 8,423.OftKB ', Top ', Btm Bend Csg Run Date OD (In) Grade Wt (Ibsltt) item Density Drift i Conn sz i Conn Sz Btm Angle 3115/2007 7 L-80 26.00 Jts Description '.. Len (ft) OD (in) ' (Ibs/ft) Grade ID (In) ~ (in) lln) Top Thrd On) Thrd Cum Len (tt)' O ~'~"^~ N ~~z ij4~," ' : as y ~--~s Drill Pie ~ 8,017.... 4.72 ~ ~ ~ ~ ~ ~ ~ 8,750.34 ~C~~nenf ~, ,~ ~ ,~~~~, ~ ,.r ,~ zFs ~ .~,u p Cmnt Des Comment _ - --__ __ HWDP 248.78 4.72 733.34 Drilling 34.28 51/4 484.56 Jars - Hydraulic .HWDP 310.26 4.72 ~ 450.28' 1X~-----L 1.69 4.821._.. _- 1~ --1-----1- -. 1- -~-- - 140.021--- ;;; ~' ~` '` Report Printed: •4!2!20 .. r . . i Drlll String Components 76.70 i 95.30 18.60 i Mtr Top Btm Bend Item Density Drift Conn Sz Conn Sz etm Ah81e Jts Description Len (ft) OD (In) (Ibs/ft) Grade ID (in) 6v) (in) Top Thrd iJnl Thrd Cum Len (ft) (~) (Stabilizer 5.541 4.771 ~ 2.1301 ~ 138.331 f 2 MN Flex 62.16 4.72 1.250 132.79 Drill Collars IMWDTM L 10.98( 4.56 ~~ T [1.250( ~ I ~ ~~~ ~ 70.631 i MWD PM3 8.56 4.69 1.250 J59.65 is TOOL MWD FE 25.59f 4.721 ._ __ 1.250 ___ ._ _..~ r--_--- --~- -- -- _ 51.0 L TOOL ~ 9 Float Sub 2.17 4.78 2.130 25.50 Motor with 22.73 5 i 2.000 i 23.33 0.00 Stabilizer _ ORIGINAL HOLE Directional Su_rv_eys Date Descrlpth - __ 2/28/2007 - --~WD s vrt uepm tnnesl 2115!2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23 ssss7s.oo r 3Safe ~„_~, , ~_ ~ ~"' ~` ~ ~u ~'~°~ s , ~ ,~~, ~ ~ Target Depth (ftK6) Target Formation ~,,. w.. »~ ~ ~~,~ • ~.. ,., Type Date Comment ~ 3afetyHighhghtl3/17/2007~LayingdownDrlllPlpe - ~ ~ oeilycoe{Total ---cumcoseroDate -_ ~° ll„ a~r~«$xs,~ r , ~ ~ , ~ ~; x . gw ~ ,~ r„~-: + ~+. ~t ~+w t~ 414,425.03 14 524 507 93 ~ DaIIY Summary '; ": ~.~ ~. f~fi`,. €k. _ a.'.y~ `~ a'"R~ ~a~=~~,~' °°,:~. .?i~4ii~~.e''•~~~~ ` ~~~"~~~~+~ ~ - - - _ - _ L WeatherLease /Road Conditions Wellbore Condition Over (+) / Under O AFE~(+/) Var Days 'Dally Mud Cost Mud Cum To Date 0 F No Wlnd Clear of all Snow 11 Good 6 21,220.73 __ 373 249 76 - ~_. Operations @ 06:00 ~ ~~~ _-~ _-~ -- ~ ~ ~ -~~ _'- ',Depth Start (ftKB) Depth End (ftK6) POOH 8,433.0 _ 8,750.0 - Operations This Report Period __-_ ....... ........ .....-_.._- ............. ........._._ ........ _ ..,........__ .~_-.--. ---I Depth Progress (tt) Drilling Hours (hrs) ----- Drill as/per geologists instructions, TD well at 8750' MD 317.00 17.00 ~ operations Next-Report Period.... _ --------- - - --- ----- - pail ~~Forernan Ctintac~ ~ ~"~ ~~`~ POOH to run logs. Start P & A. Y .. ' - ~ ,~ ~ ,~ ~-~---- ~ ~,,, -~~~.. Job Contact Cell Pho a xa - r, ~ ~ ~ t,,,. ° s ~„~ Time Lo ~ , ~ '~~, ~ ~, ~F. "~" ~`~ „'~ '~,~~,,,~'~~,~.. ` '~ Mike Ross, Drilling w U:.-..•.~s., ~. Start Our x.. Ops Scheduled ,,, - Depth End Foreman Time (hrs) Cat Type Phase Mayor Op Operaflon Trouble (ftK8) Comment f .00:00 2.50 Drlg Planned Drlg Prod Drilling Drill - Crnnt No Trbl 8,433.0 DRILL SHOE Mike Ross, Drilling Op , I TRACK Foreman ~ _ _- ~ _ _ _ Rigs: Doyon, Arctic WDIf ~ _, .02:30 17.00 Drlg Planned Drlg Prod Drilling brill -Motor Dir No Trbl 8,750.0 DRILL FROM 8433 = ~ ` ° i Op TO 8750 R~9 supervisor Bob Lupton, Rig Manager 119:30 2.50 Drlg Planned Drlg-Prod brilling 1Short Trip No Trbl ~ 8,750.0 SHORT TRIP TO Mud Pum <No.?>, Gardner-Denve... P ~' 0 8712 No. Pwr (hp) iRod Diameter (In) 22:00 2.00.: Drlg Planned Drlg Prod Drilling Circ & Cond No Trbl 8,750.0 CIRCULATE 900.0 Op Mud BOTTOMS UP une- size pn) stroke pnj -?voilstk oR (bblrs... - ~ 9.02 j Mud Checks: 8,65D.OftKB, 3/17/2007 13:30 - ,; .... --~- - .______ ___---_ ' Density (Iblgal) pH CEC for Cultings Pf (mUml) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbl) 'Pump Checks 9.40___ 10.8 0.200 600.000 91.0 _ strokes Vis (sfgt) Filtrate (mLl30min) Filter Cake (l32") Pm (mlJmL) Potassium (mg)L) Percent 011(%) Mud Lost (Surf) (bbl) ~ pres (psi) Slow Spd (spm) Eff (% ) 51 5.0 2 1.200 28,999.999 1.0 I No PV Ovar (cp) Gel (105) (Ibf/100f... Sand (%) MBT (Ib/bbl) Llme Qb/bbl) OII Water Ratio Mud Vol (Act) (bbl) ~ Mu'd Pumps; 1; Gardner-Deriver; PZ-9-. ~'~ 5.000 0.0 4.5 1.1 /98.9 No. Pwr (hp) !Rod Diameter (In) Over (Ibf/10... Gel (70m) (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbl) 1 900.0 I 11.000 5.5 5.4 --~ ------i-- pe Gei (30m) (Ibfl100... T (fl) (°F) Chlorides m _Llner Size (In)Stroke (in) VoI/Stk OR (bbl/s... ( g/L) HTHP Fllt (mU30... Alkalin (mUml) Whole Mud Add (bbl) 5 1 /2 9.02 I Polymer 16.000 31,000.000 13.0 - - ---- -----.. _...-.._._...... Silicate (%) -Electric Stab (V) comment ---Pump Checks 5Vokes Pres (psi) Slow Spd tspm) Etf (% ) Mud Checksi 8,751.OftKB, 3H 7/2007 21;00 ~--900.0 Yes _ 44~ - -- ' Density (Iblgal) pH CEC for Cuttings Pf (mUmL) Calcium (mg/L) % Water (%) 'MudLOSt (Hole) (bbl) ~ ~ ~- ---- 9.40 9.5 0.210 240.000 91.0 2,700.0 No 100 Vis js/gtj _ - Fiivate (mu3bmGj Fnte~ cake ~fsz^j Pm (mLJmL- Poiassium (mglL) Percene oli (%i Mud Loci jSuri) (bbq ~.iNud Pumps,: 2, GardnerDenver, PZ-9 76 5.8 2 _ 0.450 _ 27,000.001 1.0 53.9 No. Pwr (hp) Rod Diameter pn)' ~ PV Over (cp) Gel (1 Os) (Ibf/100f Sand (%) -MBT (Ib/bbl) Lime (I Wbbl) Oil Water Ratio Mud Vol (Act) (bbq ~ 2 90D.0 7 000 0 0 7 0 1 1 /98.9 903.1 Liner Size (In) stroke (Inj Vol/stk oR (bblls- YP Over (Ibf/10... Gel (tOm) (Ibft700... Solids (%) LGS (N.) - Polymer (ppm) -LCM Mud Vol (Res) (bbl) 5 1I2 ~ 9.0J2 _- --------- - 9.000 6 0 _ 5 9 __ _ Pum Checks _ Type - - ~- Gel~(30m) (IbfN00... T (fl) (°F) ~ ~ Chlorides ~(mg/L) HTHPFiIt (mL130... Alkalin (mLrmL) Whole Mud Add (bbl) ~ Strokes Polymer 13.000 25,000.000 13.2 Pres (psi) Slow Spd (spm) EH (% ) Silicate (%) Electric Stab (V) comment 900.0 Yes 44 95 ~ 2,700.0 No 100 95 r:-~ ~ ~ ,~ ~~ ~~~ ", Drymg Shaker ~~ta ~ ~ ' - ry - ~ _x' r ~_ ~ ~~- :<:M.s - ~.-~ ~?-~ ~r~a~~. >.~`~.~z~~ShakerS: <DescrlptiOn?> . ' Description Make Model Make Model HG D er Derrick Derrick Shaker Screens 'Shaker Screens Deck No. Sc_reen_NO. ScrSzX In ScrSZY In - _-__ __ __-- ____.___ _._. ..___ (.1..-_...-.. .__-._- _ ----...:._ _ .-..-_~.) __._:-._-- Screen ..~-~ .. 1 1 200.000 ~ Deck No. No Scr Sz X (In) Scr Sz Y (In) 1 2 200.000 ----....-~_.__-- _ _ ~.._____ __.-~._ 1 3 200.000 Shaker Checks 1 4 200.OOD L Dens OF (Iblgal) Dens OF (Iblgaq Hrs (hrs) Shaker Checks _. l.. ... .,. ~ ,_.__ ~ __. .-.~. i - - Dens OF (Iblgali _ Hrs (hrs) .S. ~:: , . . ,_ ' ~+ .. _:_., MekO ~ MOtleI -- --- - - - --- I --- - --- -- fl ~ Descripdon Make Model ,___-- __._ -- -.. - HG Dryer Derrick Derrick ~ CentrifugelCyclone Checks - -- -__ -- - - -- _..- ---- --- ---- --- _--- ,Density Overflowpb/gaq Overflow Rate(gpm) .-- Shaker Screens. _ - Deck No. Screen No. - Scr Sz X (in) Scr Sz Y (In) _ _ _ _ _ _ , _ _ _ 1 1 2DI).OOD .Dens OF (Iblgal) UnderFlow Rate (gpm) 1 2 2DD.OOD '.Hours (hrs) Oil Under FI (%) ,Dens FD (Ib/gal) 1 3 200.000 L 1 4 200.000 J - -- __ _ __ Report Printed: 4!2120 .,up type: unning- vngtnat uaie: srur~uui, rceport: ai!s u, urs su.ts7 ~~- Ground Elevation (ft) ~ Orlg KB Elev {ft) ~KB-Ground D(stance (ft) IMud,Addltive Amoiintsx, , c ~- 76.70 95.30 _ 1 1x.60 Descrlptlon Cons... Dally Cost Vendor Shaker Checks MUD LAB 1 1.0 45.001 - Dens OF (Ib/gaq _ - Hrs (hrs) _ - _ PAC-R 2.0 309.30 HALLIBU... 7 ENERGY Drying Shaker Data _~ ,~a<r.t .., . ~: r~rlf ~s.~ r ~' ~~:~~G~~ ~~: ~~~~"~ ~~'`. k~ . '' ~"s~~":~~.`;~ ~-,> SERVICES . Description Make Model j HG Dryer Derrick Derrick IBA. DM 2.0 1,575.00 HALLIBU... -- -- Tech ENERGY Shaker Screens Service/L SERVICES Deck No. Screen No. Scr Sz X (in) ~-. ScrSzY (In) Aldacide G - 4.0 - 663.72HALLIBU... 1 1 200.000 ENERGY 1 2 200.000 1 3 200.000 ~ SERVICES 1 4 200.000 THERMA-... ~ 4.0 249.88 HALLIBU... ' ------ - --- ENERGY Shaker Checks (SERVICES _.. Dens uF pbfgaq Hn (hrs) Bicarbonate 5.0 138.70 HALLIBU... Drill Strings: BHA #5, Motor -vertical .:, !; ;' !- ~ *~ ° of Soda ENERGY _~; ~~ ,., Blt Run Make Bit Inventory ~ ~ Bn Type Item Cost SERVICES - 4 ~ Hughes 16 1/bin, STX-1 , 5117049 _ ~MIII Tooth _~ _ 7,233 00 garacor 700 5.0 723.55 HALLIBU... (ADC Bit Dull TFA (Intl Noz) (in') BHA ROP (ft/hr) Nozzles Q32") (ADC Codes ENERGY 3-3-WT-A-E-O-NO-TD 0.45 18.6 ~ 14/14!14 l 1-1-7- SERVICES 5,433.0 - 8,433.0 ftKB = " .., .. ., _ , --~. .F. Barazan D+ 6.0 952.26 HALLIBU... BHA No.S '.Cum Depth ft~ ~ ~ ~ ~~ ~ ' '^ .. -. O 3PP (psq Flow Rate (gpm) TFO Reference Rot HL (10001... Max. Hook Load (Ibf) ENERGY (NOB (10001bf) Interval ROP (ft/hr) Total ROP (it/hr~ Drilling Time (hrs) Drilling Torque PU HL (10001bf) Max. Over-Pull (Ibft SERVICES _ __ CiricAcid ~ 10.0 1,080.80 HALLIBU... . - - - ----- . Bit RPM (rpm) Motor RPM (rpm) Cum Drill Time (hrs) Ofl Bottom Torque Torque Units ~.SO HL (10001bf1 ENERGY _ - - _ _ __ SERVICES HydraulicCalculatlons ;Barg-Trol 25.0 1,588.50 HALLIBU... "` - AVDP (tUmin) Av Dc (ftlmm) Err Plus' ENERGY A casing component contains a null value in ID I SERVICES 433.0 - 8,750.0 ftKB < . -` ~~ _ Barofibre 39.0 981.24 HALLIBU... .- A No. 'Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001 .. Max. Hook Load (Ibf) ENERGY 5 __ 317.00 _ 220 (SERVICES WOB (10001bf) Bnterval ROP (fUhr) Total ROP (fUhr) Drilling Time (hrs) Drilling Torque PU HL (t0001bf) Max. Over-Pull (Ibf) .. ......... . 20 18.6 18.6 17.00 4.0 248 10.0 Baranex 42.0' 3,250.38 HALLIBU... i 'Bit RPM (rpm) Motor RPM (rpmj (Cum Drill Time (hrs) Off Bottom Torque Torque units ~so HL (totialb0 ENERGY I ' 340 I 120 17.00 2.0 224 SERVICES -- - - Hydraulic Calculations PAC-L 61.0 9,662.40 HALLIBU... Av DP (ftlmin) _ Av Uc(ft/min) _E~r _ ENERGY A casing component contains a null value in ID l SERVICES Drill String Components Mtr r f` ~1f ~ ~'~~~ ~,,,, "'~~~~, ~ ~ , ~ ~ ' rop Btm Bend Lash GasingCheck'~ ~..,~aM. ~at,~,,,,;~ Item ,Density Drift ConnSz' ConnSz gtm Angle -Date Type Jts Descrlptlon ~ Len (ft) OD (In) j,. (Ibslft) -Grade ID (In) (in) (In) 'TOpThr_d (ini Thrd Cum Len (ft), _ O ~ r Drill Pipe 8,017.... 4.72 _I 8,750 34 L..BStyBOP Chet:k ~ t- ~ "'"~+``~' x.~. ~ _ . ~ C I I I I I I ~ L_- 1 l _ ~ ._. .. ~ ... ,- ~ . ~~e ~ ~.,,.,; . Test Oate Test Type HWDP 248.78 4.72 _ 733.34 Drilling 34.28 5 114 ; 484.56 - ~- -~ Jars - .Formations ~' HydraUllC Sample Top I , _FOrmatlon N_a_m_ a MD (ftKB) HWDP 310.26 4.72 ~ 450.28 Nanushuk Group -~ 1,072.0 ~ ° IXO ( 1.69 4.821 1 ~ ~ L I 140.021 Base Permafrost 1,090.0 ' ' Stabilizer 5.54' 4.77 2.130 138.33 Nanushuk topset sst. 2,379.0 j 2 MN Flex 62.16 4.72 1.250 ~ 132.79 ;Torok 2,950.0 "' ' Drill (:: Torok sand 1 7,180.0 fir: Collars ! HRZ 7,233.0 ; . MWD TM 10.98 4.56 1.250 70.63 Kuparuk Sandstone Mbr 7,406.0 ~: MWD PM3 8.56 4.69 ~ 1.250 59.65 U I' TOOL peer Kingak (Miluveach) 7,619.0 I ~ ',Alpine Sandstone 8,424.0 ~ MWD FE 25.59 4.72 1.250 ' -51.09` BCU (Base Cret. 8,490.0 :, p ~ TOOL Unconformity) ', Float Sub 2.171 4.781 2.130 ( I 25.501 Motor with 22.73' 5' 2.000 23.33_ 0.00 Conductor Pipe, 100:OftK6 Stabilizer C n Date OD In Grade Wt Ibs/ft sg Ru ( ) ( ) ' ,:F"~ ~~~. ~~~ }.~~ ~~,~~~'-~,~`~', ~,.a~~~ ~ ~ ,~.v "~, ~ * ~x " 1/26!2007 16 H-40 65.00 . ~.. .~,... , ~..;, ._ Surface Casin 2,1~15.4ftKB'.: Wellbore Name ~ VS Dlr (°) Kick Off Depth (ftKB) I g, ORIGINAL HOLE , 0.00 L _-- tag Run Date OD (In) (Grade wt pbs/ftj ---..._ ------------------------------ ----- --, 2/16/2007 95/8 i L-80 40.00 ~ .Directional Surveys ___ i Date - --- - -- - -~~- DescrlF 2/28/2007 MWD ~. ~'. 1 i I; 76.70 _L 95.30 18.60___ Csg Run Date OD (In) ~~~iaxade we (~bs~ft) --- - 3/15/2007 7 L-80 26.00 - ,. - Spud Date Rig Release Date Ground Elevation (ft) Orlg KB Elev (ft) KB-Ground Distance (ft) AFE No. Total AFE Amount Total AFE+Sup 2/15/2007 04:30 76.70 95.30 18.60 AF62035 23,556,979.00 23,556,979.00 ,'. '. r '~ ': .,,,~, ~. ~ ~, ~. ~ '"~' ~. ~ .i"t b "-, "`~ Tar ------- ~ ------ `Safety '.'- :- '. . >} . ae':, ~~I ~, d~ „w~ a`,.« ,; ..;s( f~. ',~. '"~ z..,:~; ~, <.v'~.i°r" ~*,s~~;'~,4~ .a'~~r:~e~ ~" 98t Depth (itKB) Target Formation «~ .<. .: Type Date Comment SafetyHlghllght~3%18/20071MIxingchemlcalsafely. oalrycostro4sl - cum costroUate - r r~ ~^ -~,~^-~ r~ .~ ~+ ~~ ~ ,~.gixa 289 831.23 _ 14 814,339.16 f)atlp Sgi~mary '. ~ -- ~ Weather ~ ,4. ,r `Lei '»e x.,.,r.~.~l~.~a. ~..~~g~`:`.~#~ri4,~r~'.,,...w'~~h~~)s~i ~~u'a~~'~~w.,..~.,..aw~'~ -~ ;~F.~~ "° "° Dally Mud Cost- Mud Cum To Date ase /Road Conditions Wellbore Condition Over (+) I Under (•)AFE (+J-) Var Days -25 No Wind Clear of all Snow Good 5 4,169.46 377,419.22 `, -Operetions @ 08:00 . - __.....-_.. -._.. _...- ,,,Depth Start (ftK8) -...-_ Depth End (ftK6) --- - Logging 8,750.0 8,750.0 i. , Operatons This Report Period ........... _..... ............. ___...... ._--_--_.-- _--......_ ......._-... -..-.... _ ..Depth Progress (ft) Drilling Hours (hrs) 0 00 i -POOH with BHA #5, Rig up and run Baker E-Line Logs ' --~- Operations Nezt Report Period ~ ~ `~ r~~ ' awR~~; ~ ~ 1a ` ' Da)I Fo~emenContact ~, ~. ~~; Fnlsh E Llne Logs Plug and Abandon _ Doti contact Cell Phone Time Log _ :_`,,x. ~„ ffi,f...~ 'f . ~. .~~.. ~ ~ :~~._ ~~ r~,~.;:~~;: Mike Ross, Drilling start Dur Ops Scheduled ~~ Depth End Foreman Time (hrs) Cat Type Phasa Major Op Operation Trouble (ftK6) Comment . , ~ 00:00 10.00 Drlg (Planned Drig Prod iDrilling ;Trip Out No Trbl 8,750.0 POOH, DUMP (Mike Ross, Drilling Op I MWD DATA, LAY (Foreman DOWN ALL MWD Rigs: Doyon, Arctic Wolf `` TOOLS. Rlg Supervisor Bob Lupton, Rig Manager f 10:00 14.00 Drlg .Planned Drig Prod Drilling Log No Trbl 8,750.0 RIG UP AND RUN ~: Mud Pumps::<No.?> Gardner-Denve..:'? Op BAKER.-ATLAS No. Fwr (hp) Rod Diameter (In) E-LINE LOGS 900.0 i Mud Checks: <Depth?>ftKB, 3119!2007 01:16 ' Liosr sl:e pnj 1Stroke ~h~ vousti< oR (trtius.:- Density (Iblgal) pH CEC for Collings Pf (mUmL) Calcium (mg/L) % Water (%) Mud Lost (Hole) (bbi) 9.60 10.5 400.000 90.0 Pump Che '.- Vis (slgt) Filtrate (mll30min) Filter Cake (/32") Pm (mL/mL) Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) 70 4.2 2 0.250 27,999.999 1.0 Pres (psq PV Over (cp) Gel (10s) (Ibf/1001... Sand (%) MBT (Ib/bbl) Lime (Iblbbl) OII Watar Ratio Mud Vol (Act) (bbl) ~ 23.0 5.000 0.0 5.0 1.1/98.9 631.0 Mud Pufn YP Over (IbH10... Gel (tOm) (Ibf/100... Solids (%) LGS (% - Polymer (ppm) LCM ( Mud Vol (Rest' (bbl) No. 26.000 10.000 6.6 6.0 1 Gel (30m) (IbfH00... T (fl) (°F) Chlorides (mglL) HTHP Fllt (mLl30... Alkalin (mL/mL) Whole Mud Add (bbl) 'Liner Size (In) tassium 13.000 29,999.999 12.0 0.000 56.0 51/2 Salt Base - - ~_Silicate(%) Electric Stab (V) Commem PumpChe i~ Pres (psi) - 9.02 --- cks Strokes Slow Spd (sPm) Eff(%) No ps: 1,Gardner-Denver, PZ-9 Pwr (hp) ;Rod Diameter (In) 900.0 - -- Stroke (in) ~Vol/Stk OR (bblfs... 9.02 cks Strokes SI spm Eft(%) D in Shaker Ua~a wl~~ "~" ' ~ ¢ r.W x, ~r'r3s ~~' >Ty~~ d-'. '~~, ~, I ~,¢ ~~ ,~ _ ow spd ~ _ - _ _ - ry. g ._ , „ .."~'; -+.. t ~er.._ ~.~ea ...~ ';v`..,u~te:, :4~,4r~`~s.,~,~;5 ~ NO bescripdon Make (Model - HG Dryer Derrick Derrick ~Mul Pumps: 2 Gardner Denver PZ 9 , _ __ -_._____ _._-.- -_.-._ -- _._1 _.___ -_ 'NO. Pwr(hp) Rod Diameter(in) -- ''ShakerScreens Deck No. Screen No. Scr Sz X (in) Scr Sz Y (in) 2 ~ 900 0 1 1 200.000 Liner Size (in) Stroke (in) VollStk OR (bbl/s... 5 1 /2 I 9.02 1 2 200,000 - ------- ---- -------- 1 3 200.000 Pump Checks 1 4 200.000 strokes --_- -- ___ --- ----_- - - --~res (psi} Slow Spd (semi Eff (%) h Shaker Checks ~ No DensUF(IWgall-.__...-------- -..._---------------._.----------Hrs (hrs)---------~----- '.. .. . ., .,,.-. _-__-__ _ __-_ - ,3fiakers;<Description?> , - -- _ -. _------------ - _ Make IIMOtlaI Descrip0on Mak~- - ---- Modal -- 1 HG Dryer Derrick Derrick - - ------ III - -.--. - - --------- --- -.Shaker Screens Shake_ r Screens __ _ _ --.-- --- ___- _._.._._.. -----_-_ _..-.._.1 _screen Deck No. ~ ~ Screen No. Scr Sz X in)- - Scr Sz Y in .. -. -- _---- -._- __ .__ _- ----_._---- ( -_ _-- ------------------~ ) --_ Deck No. No. Scr Sz X (In) ,Scr Sz Y (in)_ _ _ -- ~ 200.000 - 1 2 200.000 - I - (- - -- 'ShakerChecks 1 3 200.000 Dens OF (Iblgal) Dens OF (Ib/gal) Hrs (hrs) 1 4 200.000 Shaker Checks _ ~? Dens l1F Ibf al) _ Hrs (hrs) _ _. ~ JMake Model _ _. _ __ ( 9 -_._ ~ Description ~---~~~~~-- - _ - Make Model Centrifuge/Cy_clone Checks HG Dryer _ Derrick DerrlCk ,Density overnow Qb/gaq Overflow Rate (gpm) Shaker Screens - - Deck No. _ _ _ Screen No. ! Sor Sz X in Ser Sz Y in _~ Dens OF Ib/ al UndeAlow Rate ~~ __ ---- ---- _ --- --- ~ -~---- - _------ ------~ ~ ( 9 1 (9Prn) 1 1 200.000 ,. 1 2 200.000 !Hours (hrs) ~ OII Under FI (%) Dens FD (Iblgaq 1 3 200.000 I -- 1 4 200.000 Shaker Checks - Dens OF tlbtaall 4Hughes `6 1/bin, STX-1 , 5117049 ADC Bit Dull 1TFA (Intl Noz)~(tn') BHA ROP (Wi 3-3-WT-A-E-O-NO-TD 0.45 18.6 3,750.0 -;8,750.0 fitKB 3HA No. Cum Depth (ft) ~SPP (psi) Flow 5 317.00 76.70 Mill Tooth 32") ...._ 14114/14 95.30 18.60 Hre Ihre1 7,23 1-1-7- ! 18.6 4.0 248 _ 1..-~ -- Btt RPM (rpm) jMOtor RPM (rpm) ~~'.,Cum Drill Time (hrs) Off Bottom Torque Torque Units '.SO HL (t0001t~ 120 I 120 17.00 2.0 -_ 224 ~draulic Calculations ~. AV DP (ft/min) AV DC (tt/min) Err _ A casing component contains a null value in ID _ Drill String Components ' Top Btm Item Density Drift . Conn Sz Conn Bz Btm '. ' Jts Description '.. Len (ft) OD (in) (Ibslft) Grade ID ((n) On) On) !Top Thrd Pn) Thrd Cum Len (ft)' Drill Pipe 8,017.... 4.721 ~ ~ 8,750.341 ENERGY SERVICES i VIIIV r1V1V V.V V~V.'7V 1 ,l"~t-,-ivV... ENERGY SERVICES Barofibre 18.0 452.88 HALLIBU... ENERGY SERVICES ~Baracarb 50 30A 564.60.HALLIBU... 'ENERGY SERVICES tBarablok 6.0 216.721HALLIBU... ENERGY SERVICES ..v _... vvv~V V ENERGY .. SERVICES Baranex 2.0 154.78 HALLIBU... ENERGY I SERVICES HWDP 248.78 4.72! 733.34 ".";s - ,~r~~v ~~ ~,; Drilling 34.28 5 1/4 484.56 ~soCle smg`;Chegk ~ Tye ,G~~~"~ .,~,;~ Jars - ,; Hydraulic - _ ___ _ __ _ _ _ _ ._.. ._ __ ___. _ _ _ ______ ~LastBOPCheck ,,,~"~ ., .,~~ _~ .,;.m ` HWDP 310.26 4.72 450.28~~ __._ Testoate Testrype ~XO ~ 1.69 4.82 ~ ~ ~ ~ ~ ~ ~ 140.02 ~_ _____ i= Stabilizer 5.54 4.77 2.130 138.33 Formations 2 MN Flex 62.16 4.72 1.250 132.79 Sample Top Drill j Formation Name MD (RKB) Collars Nanushuk Group 1,072.0 ' __._.__ _.______ ..___..-- ----- _.._ _ ....._. _...__. ____ Base Permafrost 1,090.0 ~_. MWD TM 10.98 4.56 __ 1.250 _ _ _ __,_ _____.... -_..__ __: _ __. _70.63 _ _ Nanushuk topset sst. 2,379.0. ~ MV11D PM3 8.56 4.69 (1.250 ~ 1 ~ ~ 59.65 .Torok 2,950.0 TOOL l Torok sand 1 7,180.0 ~; M1ND FE _ 25.59- 4.72., 1.250 - _._. _. ._ 51.09,........... TOOL HRZ 7,233.0 _ _ _ ____ __ _ _ ~ _ _. ! __ ___ _ _ _ _ _ _-_ ___ , Kuparuk Sandstone Mbr 7,406.0 ~~ -Float Sub 2.17 4.78 2.130 25.50 ' _ ] ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Upper Kingak (Miluveach) 7,619.0 Motor with 22.73 5 2.000 i 23.33 0.00 Alpine Sandstone 8,424.0 `. Stablhzer S s c~ ~ ~, ~ ~ ~ ~ ~ ~ v BCU (Base Cret. 8,490.0 ,; Welibo~t3s -> `~ ..1~ ~ ~ ` a `~` ' ~ ~ ~~ ~ ~~ "' '" a~~~ Unconformity) - ;; .: , .: ~.._ ,,.., .~... u ~ ~"` A,,~ - ~w I Wellbore Name ~ ~ . ~ .. ~ _ ~ ~ ~ LL VS Dir (°) ~ ~:.a Kick OH Depth (ftK8) ORIGINAL HOLE 1 0.00 --- ' ~ ^- _v - _.__- -Conductor Pipe, 100.OftKB ~ ' Directional Surveys Csg Run Data OD (in) (Grade Wl pbs/ft) - ----------- Date - IDescriptlon _ -____ _ __- _._ --. ---- 1126/2007 16 H-40 65.00 2128/2007 _ -- MWD surveys _ ____ - _-__-___-__ - - Surface Casing, 2,115.4ftKB Csg Run Date OD (in) - (Grade Wt (Ibs/ft) 2116!2007 9 518 ~ L-80 40.00 C Intermediate Casing.,, 8,423.OftKB Csg Run Date OD (in) Grade Wt (Ibslft) ~ 3/15/2007 7 L-80 26.00 ., , . ~r, Cmnt Des Comment ` ------1---------------- _-- --~ i° '~ '. ~ r F°~ " ~'.'f Report Printed: 4/2/2007 ._ ' F ~T 2/15/2007 04 30 76 70 95 30 18 60 AF62035 23,556,979.00 23 556,979.00 ;$afCty r+ y!~Cr ,,` r ~ ~ y:,s F' ~~.a.... " a..."~d;.3~' z~`•.,,~.u`~.J ~~~'+.~N~...~ r~i' ~~~;~.,w -~ r~ '~~''~,TargetDepth(ftKB)-~ TargetFormatlon ...----~-- .4~ +u.t. ,u, k.t, .~. .,.,'+~'4.. i~ .ss.ia';2x,.~w - ,i _ Type Date - - - _ Comment 'SafetyHighlight~3/19/2007 ~CemenUng -DaitycosiTota( - cum cost Tonate - ~ Dally Summary ... ' ` ., ~ .~?.-?, " _ ~~~~~ .~~w`,~ ,.zr ~,~~'~ ~.~a ::~ ~ ~^ttE,~~°~ ~,' £ ~~ ' -~i ~,' 603,069.29 _ 15,417,408.45 Weather Lease I Road Conditions wellbore Condltlon Over (+)! Under (-) AFE (+l-) Var Days Dalty Mud Cost Mud Cum To Date -15 Light wind Good Good 5 10,134.00 _387,553.22 '. -Operations ~ 06:00 _.. _..._. __-__ _._.-_-- _ ---- --- - --- -------._ ..... ......._.- ---__ ._. __--_-,Depth Start (ftK8) Depth End (ftK6) POOH Laying Down Drill Pipe 8,750.0 8,750.0 I.._ Operations This Report Period --- _ ..__..__.___..._____. ----.--...-.---'Depth Progress (ft) Drilling Hours (hrs) Finish Sidewall Coring & Logging /with Baker Atlas-Baker Huges /Held Safety Mtg./RIH HWDP ...Lay Down 0 00 -Same /Makup Retainer on Drill Pipe & RIH to 8358' /SET RETAINER/Unsting from Retainer .. Circ. Casing ~ ~`~~~ ~~~' ~ ~' "' ~`~ r -Volume to Circ. out any Gas invading the Wellbore/ Close Annular & Pressure Test to Insure Retainer Sealed [bafy Foreman Contac , ~ ,~, ''~ ~`~ ; ..____ ____. _ _._ __ _ __ --__ ____ Job Contact Cell Phone Operations Next Report Period Mike Ross, Drilling Abandon Well Pugging Program as Planned :Foreman Time Log - ~ j., _. .. ~ D ~ ~: '~'" xv~.~~:~~,~ zx~.~f;~'~t~~,'~;~"'~ .> R,... ~ t„' Mike Ross, Drilling start Dur ops `selieduled - _ Depth End Foreman .Time (hrs) Cat Type Phase Malor Op Operation Trouble (ftK8) Comment 00:00 12.00 Eval Planned Flat Prod Logging Log No Trbl Logging with Baker I Rigs:~Doyon; Arctic- Wolf ` `` Op Wireline / Sidwall Rig supervisor Coring /Nuke Log Bob Lupton, Rig Manager V 12:00 0.50' Drl Planned Abnd Plu & ' Tri In No Trbl Tri In 7 Stds of Mud Pumps;. <No.?> Gardner-Denve.. g 9 P P ~ No. Pwr (hp) Rod Diameter (in) Op Abnd HWDP 11 900.0 12:30 1.00 Drlg I Planned Abnd Plug & (Trip Out No Trbl Lay Down 14 une~ size jIn) - stroke (i~j vo1/stk OR (bbl/s... Op Abnd HWDP ~._ 9.02 - 13:30 8.00 Drlg Planned Abnd Plug & `Trip In No Trbl 'Makeup Retainer ,pump Checks Op Abnd on DP 8~ RIH strokes 21:30 2.00 Drlg Planned Abnd I Plug & ~ Circ &Cond Other Set Retainer at Tres (psi) slow spd (spm) Err (%) Op Abnd Mud 8355', Establish ~ NO Injection Rate - 3 Mud Pumps: 1, Gardner-Denver, PZ-9''` BBLS/MIN = 2160 No. Pwr (ftpj (Rod Diameter (in) PSI. Close Annular 1 900.0 Preventer and Test ,Liner size pn) Stroke (Inj ~VollStk OR (bblls... • Annulas to 2200 5 1/2 I 9.02 PSI. Pump Checks 23:30 0.50 Drl Planned Abnd Plu ~ `Circ 8 Cond ~ I Other Circulate I Pros strokes 9 g ----(Ps'~ -Slow Spd_ (sr+n+l Eff (%)_ Op Abnd Mud _ _ ~ No Mud Checks: 8 751.OftKB 3/19/2007 15:30, ~" ' . °, ~:: _ bensi9 60 al PH 10.2 CEC ror Cuttings Pf mUO OOO Calcium m /L ~ watOerO 0 ~ Mud Pumps: 2, Gardner-Denver PZ 9''' ry ( g ) ( ) ( g ) ( Mud Lost (Hole) (bbl) No. Pwr (hp) Rod Diameter (In) __ __ __ 2 --_~-_ so0 0 _ Vis (slgt) Filtrate (mU30min) Filter Cake (/32") Pm (mL/mL) Potassium (mg/L) Percent Oil (%) Mud Lost (Surf) (bbl) Liner Slze (In) Stroke (In) Vol/Stk OR (bblls.. 70 4.4 2 _ _ 0.20.0__ _ 27,999.99.9_ _ 1.0 110.0 5 1/2 9.02 i- PV Over (cp) Gel (10s) (Ibf/t00L.. Sand (%) - MBT (Ib/bbl) Lime (IWbbl) - OII Waler Ratio Mud Vol (Act) (bbl) ., pum Checks 23.0 6.000 - _0.0 _ _ 5.0 _ 1.1_/9_8_ .9_ 876.0 strokes YP Over (Ibf/10 .. Gel (10mj (Ibf/100... Solids (%) LGS (%) Polymer (ppm) LCM Mud Vol (Res) (bbi) I pres (psi) Slow Spd (spm) Eff ('Yo) 26.000 11.000 6.6 54.5 _ No Type Gel (30m) (IbfH00... T (R) (°~ Chlorides (mglL) HTHP Filt (mU30... Alkalin (mLImL) Whole Mud Add (bbi) $hakerS: <D@SCrIptlOn?> Potassium 13.000 29,999.999 12.2 0.000 Salt Base I Make iMOdel ;Drying Shaker: Data ` ~ ., ,,: a '~ ~,:;: -~ ~s,:~,:_`, .:~"~". ~~:".., „ . '" ..~;~,>, ~' '~ at Deck No. S No. n Scr Sz X (In) Scr Sz Y (in) Description Make Model _ _ I - _ _, _L._ ___~, HG Dryer _ Derrick (Derrick Shaker Checks Shaker Screens ,Dens OF (Iblpal) Dens OF (Iblgaq Hrs (hrs) Deck No. Screen No. Sor Sz X (in) Scr Sz Y (in) L; 1 1 200.000 _ ~ . 1 2 200.000 ,Make Model 1 3 200.000 ~___ ____ I__ _ 1 4 200.000 CentrifugelycloneChecks __ Shaker Checks --_-_--_ --- ------- -'Density Overnow (Ib/gal) OveAlow Rata (9Pm) Dens OF (Iblgal)_._.-_ -, Hrs (hrs),___. _ _:___..... _ _ .. _ _ _._.._ ._~:__.._ ~ __... ._ __._- . ---.___.._ -- •Dens OF (Ib/gal) --~- Underflow Rate (gP~nl escripgon Make Model Hours (hrs) OII Under Fi (N) ',Dena FD (Ib/gap Dryer Derrick .Derrick aker Screens ~ -___._` _ Deck No. Scroen No.. '~ Scr Sz X (in) __ Scr Sz Y (In} 1 _ 1 __ ___. ......200.000 1 ~ --- 2l 200.000]_ ._ A ~ " Report Printed: 4/2/2007 _ ,_~...._ n ,~ . _ _ 76.70 _ _ _ _9.5.30__L 18.60_ ~ oescnptioo - _cons deny cost venaor_ Shaker Screens Baracor700 Deck No. Screen No. Scr Sz X (In) Scr Sz Y (In) i 25.0 3,617.75 HALLIBU... ~~ I-----_ ___ --- -- .______ _-_-___----- -------------~..- --------- __ ENERGY 1 3 200.000 N-DRIL HT+ SERVICES , 1 4 200.000 i -- - __~ --... - 32.0. 3,041.28 HALLIBU... Shaker Checks ENERGY Dens OF (Ib/galj_ __ Hrs (hn) _ SERVICES, i WALL-NUT 36.0 928.80 HALLIBU... ' `.Dryirig Shaker Data°~~ ~ ~ ~.~ ~ ,s sY ~ , .~., ~..-;: , ~,~ ~ ..., ~,x,Y ~, '= ~ °~`~~~~..~ ~ ~'..,~~~~.~- -. . ~~ ~ . ,~ ` ~~~;' F ENERGY ~ Description Make Model SERVICES HG Dryer Dernck Derrick ~~ Shaker Screens ---- - Baracarb 71.0 1,758.67 HALLIBU... Deck No. Screen No. Scr SzX pn) _ - Scr Sz v pn) 150 ENERGY __ _. ---..__,_ __.__.___._1 SERVICES __ _ 1 , . _.. .. ..._._. _.___~ ___ .. 200.000 1 2 200.000 IBA. DM 1.0 787.50 HALLIBU... - i 1 3 200.000 Tech I ENERGY 1 4 200.000 ServlcelL SERVICES Te 3. 4 Shaker Checks ~~~~~ ~ ~~r ~ ~ .~~ ~~ ~~ ,~~ri , ~( ~ _____ DensuFpwyai)J_ __.____:w_____~_ ---_._--Hrs(hrs)___~`_,,_~,Lasi:CasingCheck~~,~,~ ~~r,~s~,a~ '' - ....._. _ Date T y r -~ - Drill Strings: ~ ~ ,'" y ~ ~ I BnRun Make ~ ~Bhinvento ~ ~ ~BR ~ ~kemcosi;~~ _ ~ LaSt~6~'P_CMeck ~~ ~ ~'^ ~`," ~; rY ~ TYPe ~.. _... c a. ~~ , Test Date Test Tvne ,. ~ ;. SampleTOp ' BHA No. Cum Depth (ft) SPP(psi) FIowRate (gpm) ~ TFO Reference ~ Rot HL (10001... Max. Hook Load (Ibf) ~ Formation Name MD (ftKB) Nanushuk Group I 1,072 WOB (10001b1j Interval ROP (fUhr) Total ROP (ftlhr) Drilling Tlme (hra) Drilling Torque PU HL (10001bf) Max. Over-P~u pt>0 .Base Permafrost 1,090 Nanushuk topset sst. 2,379 ', Bit RPM (rpm) ',Motor RPM (rpm) ICum Drill Time (hrs) Off Bottom Torque Torque Units 'SO HL (10001bQ iTOrok 2,950 ~~ _..~ Torok sand 1 7,180 draulic Calculations HRZ 7,233 -- Av DP (ft/min) nv ~c (ttrmhj_ _ _ __ -- -- err .___-._ Kuparuk Sandstone Mbr 7,406 ... ___ _ _ - _ __ __ --- - ------ - 1 Drill String Components Upper Kingak (Miluveach) 7,619 Alpine Sandstone 8,424 To Btm a a BCU (Base Cret. 8,490 P i Item Density Drift Conn Sz, Conn Sz gtm 'Angie Unconformity) ll Jts Description '. Len (ft) OD (in) (Ibslft) Gra de ID (in) (In) (In) Top Thrd liN Thrd Cum.Len (ft) (~) v r r P OO. B " 4 B ~~ 3 t"'~ WellborBS ~ ." ~ Wellbore Name ~ -~~ D (' j r ., a v~~: Csg Run Oa e ` "'^°'~s~'~ . fi~ r~fi't ~~ Wt (Ibslk) Grede _ a ~` ~n 3 ~,~F iY ~~ ~ VS Dl~r~( ) ~~ ~r ~ Kick OHDepth3(ftKB) ~ ! 1/26!2007 16 H-40 65.00 ORIGINAL HOLE 0.00 Surface Casing, 2,1]5.4ftKB Directio s lbs/ft) Data Description 2128 2 2/16/2007 9 5!8 L-80 40.00 I 007 IMWD surveys 1 j ~Intermediat Casin ~ 8 423.OftKB 9 _ .. __ _- _ _ _ _ __ , Csg Run Date OD (in) Grade Wt (Ibslk) 3/15/2007 7 L-80 26.00 ~± I. L.. ~~ G L ~ Cmnt Des _ Comment ` ____ ---- ~'; I i I I - - ~: `~ ;; .- .- . ' Report Printed: 4121 , 2115/2007 04.30 76.70 95.30 18.60 AF62035 23,556,979.00 zs,556,979.00 ` "` ~~"~ r ~ :'F'r,~ - ~ r ~' " ~ ~ ~"' Target Depth (ftKB) _ - _ Tar et Formation y''. ...., '.~, P .,.- ~•. ~ .,u-~•~..w ,~st „; ,ut ::.zv'v..u;.v. .~;. ,z.. mu ,. ~W.',. .,r„ ~!,.~; 9 Type Date Comment ~; ~ : s ~ - ~ ~~ ~ ~ ~ ~ ~ ~ ` , ~r ~`~~- ~ ~- : r ~, ~~ Summary - ` t ~ ~ ~ ~~~ ~ 231,825.25 15,649,233.70 ,. ; .~r ~sw ~.~ ,,, - Lease l Road Conditions w ~`~~ ~ we en ~ " ~ elltwre Condition Over (+) / Under O AFE (+/) Var Days Dally Mud Cost Mud Cum To Date '~ - -- -- -- -20/ light vend l Good Good 5 _ 387,55322 -- -- Operations ~ 06:00 _ ',Depth Start (ftKB) Depth End (ttKBj - Nipple Down /Clean Tanks _ 8,750.0 8,750.0 -0peratlons This Report Period ~ _ ...._...-_ _._-_-.._..__... _.____ - - 'Depth Progress (tt) Drltling Hours (hrs) Circ. Btms up above Retainer / *** Gas to Surface peaked to 9900 UNITS .... Total Length of Gasssy Mud 0.00 Column was over 3000' ***/ Sting back into Retainer Mix 8 Pump Cement below Retainer as Programed and i - ' approved by AOGCC/ Pull out of Stinger & Cement 100' Above Retainer as per Prog./ Pull out of Cement Rack Daily Fo~ernan Contact .., back 5 stds /Pump to Clean out Pipe at this same time Halliturton was hooked to Well head to squeeze Permafrost Cement to Backside pumping the same time **** MAJOR Mess the Cement Line was hooked to Job contaot cell Phone upper Valves instead of Lower /Thus Cement was pumped to Pitts ****while rig was flushing pipe /Continue ~ Rigs: Doyon, Arctic Wolf LD.DP /SLip & Cut I Push Wiper Plug to 374' with 6 Stds of pipe / Cement C type Permafrost Cement from Rig supervisor 374' to Surface Cement RETURNS At SURFACE /Squeeze Freeze protect Fluid to back side of Casing till Bob Lupton, Rig Manager /More Perafrost Cement delivered to site /Nipple down & Clean Tanks IMud Pumps: <No.?>, Gardner-Denve., ~ No. Pwr (hp) Rod Diameter (In) Operadons Next Report Period ~ 900.0 __ ____...-__--._-_,._.---,.- Nipple Down /Clean Tanks /Move Loads to Aklaq #6 uner size pn) Stroke (In) IIVoi/Stk OR (bolls... ..;- :~. Time Lo yk ~ Y~ rK ---- -- _ Start Dur Ops Scheduled Depth End ~ Pump Checl(S Time (hrs) Cat Type Phase Major Op Operation Trouble (ftKB) Comment Strokes 00 00 1 50 D i Pl d Ab d 'Pl & C Pl h i •ul i B O tms UP Leas (psq slow spd _ (spm) Eff (%) : . r g anne n mnt ug ugs t er C l at ng Op Abnd after setting C ,. NO Retainer there ~M~d Pumps'i 1, Gardner-Denver, PZ-9`- W8S** 9900 UNIT No. Pwr (hp) Rod Diameter (In) Gas Spike *** to 1 1 900.0 Surface ,Liner Size (in) _ --- . Stroke (In) - 'IVollStk OR (bbl/s, 51/2 9.02 L 1:30 2.50_ Drlg Planned Abnd Plug 8 Cmnt Plugs No Trbl _ .. ___ String in to Retainer P Ch k Op Abnd ump ec s /.Cement Plug #1 svokes as per Plan /Pull Pres (psq slow spd (spml _ Erf (%) _ out of Retainer. ~ ~~~ N /Cement. Plug #2 as ~ ° ~ l I Mud Pumps 2Gardner-Denver PZ-9 Plan NO• 2 ~~ (900.0 Rod Diameter {In) 04:00 1.50 Drlg Planned Abnd -Plug & Cmnt Plugs No Trbl (Pump Wiper ball __ Op Abnd down pipe / to 'user size pn) Stroke (in) . Vol/Stk OR (bbl/s... (Ib/gal) ~pH CEC for Cuttings dace cement _____ 5 1/2 _ 9.02 of pipe/while pum Checks . ,. ~ Strokes ~.:~l.i Pres (psi) Slow Spd (spm) Eff (%) Lost PV Over (cp) - Gsl (t Os) (Ibfl100f... Santl (% ) -Type HG Dryer I Shaker Screens F-.~-._..._.._. Deck No. i 1 1 Lime (/blob/) IOiI Weter Ratio Shaker Screens __. _. Screen Deck No. No. Scr Sz X (In) Scr Sz Y (In) ~-___ __~__---- _T---------- ShakerChecks Dens OF (Ib/gal) Dens OF (Ib/gal) Hrs (hrs) Derrick ~ Derrick 1 3 200.000 1 r - 4 ---- ----- 200.000 ---- -- - -- .----- ~:ShakerChecks Dens OF (Iblgalj - l Hrs (hrs) ', -- - - escrlption Make T Model HG Dryer Derrick , Derrick .,. ~,,. 76.70 95.30 18.60 ~` Test Base _ ~ ~ " ~ Test Type _ __ --- - Shaker Screens Deck No. screen No scr sz x pn),i____ scr sz r (m)_~__~ Formations 1 1 200.000 Sample Top 1 2 200,000 ~ Formation Name MD (ftKe) 1 3 200.000 INanushuk Group 1,072.0 1 4 200.000 (Base Permafrost 1,090.0 'Shaker Checks Nanushuk topset sst. 2,379.0 ...Dens uF ptUgai)_____-- -+rs (hrs)---= _ Torok 2,950.0 (Torok sand 1 7,180.0 ~ ;Drying ShakerD`ata .... ~~g _;~~..~ ,.,`"~:. _~ ~,~~~~~ )?rte'g°".'~~.~:~~-~~`~+',~:~~a~~a.~'.~`s'#. ~~`t,~" aHRZ 7,233.0 Description Meke /Model Kuparuk Sandstone Mbr 7,406.0 ~ HG Dryer Derrick I Derrick -___ ____ __._ __.._..__.--__ _..____ _ _~_ ___._ Upper Kingak (Miluveach) 7,619.0 Shaker Screens !Alpine Sandstone 8,424.0 Deck No. Screen No. Scr Sz X (In) ~ Scr Sz Y (in) -. -. BCU (68S@ Cret. 8,490.0 1 1 200.000 Unconformity) = 1 2 200.000 ~ 1 3 200.000 1 4 200.000 Conductor PIpe,100':OftKB ;; ~ _ ~~- _ " -~Csg Run Date OD (in) Grade Wt (Ibslft)~ ~~ Shaker Checks.. 1/26/2007 16 H-40 65.00 Dens OF (Iblgal) Hrs (hrs) ,; (Surface Casing, 2,115 4ftK8~- I DriI1 Strin s: ~ ~ ~~~ ~~-F~~ ~ csg Run Date oD pn) Grade Wt (Ibsfft) 9 , .. ~: ~ ,.,~^t . „- , , 2/16/2007 9 5/8 L-80 40.00 ~ Bit Run (Make Bit Inventory Bk Type kem Cost ~ ~ ~ g 8 423.OftKB Intermediate Casin , ~_- ~_ __~_ ~- _ Csg Run Date OD (In) 'Grade Wt (Ibs/ft)~ (ADC Bit Dull TFA (Intl Noz~ {in')~BHA ROP (Whr) Nozzles (/32") (ADC Codes 3/15/2007 7 L a0 26 00 ( ~ ,>~ at ~~ r+~~ ~s;~ _, ,... ,. _ ,: . ~ :: ..=~ ~ .. ~ Cmnt Des _ , Comment BHA No. ',Cum Depth (ft) ~SPP (psi)Flow Rate (gpm) ~TFO Reference Rot FIL (10001... Max. Hook Load~(Ibf) `rome..~ ~i~-,~ ~~~ 1oi~.,, d.,a.,.., ORIGINAL HOLE j .0.,00 1 Directional Surveys__ __. _ __ __ __ ___' Date ~ Description '~, 2/28/2007 ~MWD surveys ', ' 11512007 04 30 76.70 95.30 18.60 AF62035 23,556,979.0~23,55ss79.oo .~ ,~.,~ !' °~,~.° ~ _ ..._~ ~,~~ ~(:~'r~ATar Bt De th ftK6 T Safety~ ~ ' .: ~rt_- ~ ~ ~~~;.: ,,,~, _ . g p ( ) argetFOnnatlon Type ~ Date ~ Comment _ Safety Highlight~9/21/2007 The Rig move Is Going very Smooth with Cruz Coordinating rt !Deny cost total -- cum costro~ata • -_ "" ~~ ~~ '~'~'"t~` ' f` "' ~ ~~~`~_ T "~ ~`% ~ -t=om 'F`~'~~ t fi: 303,113 25 15,952,346.95 y ry ! ' ~ ~ ~~~ ~~w ~~ ~ ' Daily Mud Cost Mud Cum To Dale ~ WealtheSUmma ~ ~ Lease /Road Conditions ~ Wellbore Condition fr~ sus Ov+- I Under ) AFE ~+`Va 0 3 Y ~ --- - -- - -- ays -25 light wind Good Good 5 387,553 22 ~__. Operatlans ~ 06:00 ',Depth Stag (RKB) - _- Depth End (ftKB) ° - - - Plan to have Derrick Layed Over by 09:OOAM 8,750.0 8,750.0 Operatlans Thls Report Period -.-........ _......".. ..-.... -.-. -__... ....__.._...._.. _ _ ........ .......- --._.......... ....-jDeptn Progress (nj -- DrIIIIng~HOUrs (his) -- -Rig Down Top Drive & Clean Tanks /Rig Down I 0 00 *******RIG RELEASED @ 21:00 HRS*** ~ ~ ,~,~; ~ ~,,~~ ~ ~,~ bon *****03/21107 ************ ~Daily4Forernan,Contac ~ r _~ ~4A'~; ~ Ili, Rig Down For Move /Moving Mud Products 8 Suport Equip.(25 Loads Moved Today) Job Contact Cell Phone ~ Operations Next Report Period_-_-- -------- -- --- -- I _ _, Rig Down & Move Rig to Aklaq #6 ~Rigs'Doyon, Arctic. Wolf ~ ~_ _ Rig Supervisor - ,s s a D z 4 r~ mar a, ,~ ~ tr - - Time Log ,.~ , ~,,,~I`"~r. c t)^~`,~,~~.nrc, 4 ~"°,a,. . ~~.a.m .:~ s, a,,. ~- ~ ~ . ~~„ ~ Bob Lupton. Rig Manager seart Dur ~ ops scnedulea -~ Depth End ~ Mud Pump§e <Nq.?>,,Gardne'r Denve;,~~~. Time (hrs) Cat Type Phase Ma)o~ Op Operation Trouble (nK6) Comment No. Pwr (hp) (Rod Diameter (In) 00:00 21.00 Drlg (Planned Rig Down 'Rig Rig Down No Trbl 8,750.01 ~-900.0^ i ',, ~ Op ~ Down Liner Size (in) Stroke (in) Volf3tk OR (bons... ,a . Mud Checks:': - __ :.: 9.02 a ._ ,,. _--___ _ - Density pwgaq pH CEC for Cunings Pf (ml/mL) Calcium (mg/L) % Water (%) hMud Lost (Noiej (bop pump Checks Strokes ! Vis s! - Filtrate mU30min Filter Cake /32" Pm mUmL -- Potassium m R -Percent Oil %) Mud Lost Su ~ ~ -- NO .l ~ ) PV Over)(cp) Gel (tOs) (IbH100f.,. Sand (/) ( ) MBT (Iblbbl) Lime (Ib/bbl) g ) OII Water Ratio Mud Vol (Act) bob) I Pres (psi) Slow Spd (spm) Eff (% IMud,Pumps: 1,Gardner-Denver, PZ-9.. I - _______-_ _____-___ ___ .___ ____ __ No. Pwr (hp) Rod Diameter (in) YP Over (Ibf/10... Gel (tOm) (Ibf/100... Solids (%) LGS (%- Polymer (ppm) LCM Mud Vol (Res) (bbl) 1 900.0 ~' Type Gel (30m) (IbfN00... T (fi) (°F) Chlorides (mgll) HTHP Filt (mL/30... Alkalin (mUmL) Whole Mud Add (bbl) .Liner Slze (Inj ~oke (in) ~VoI/Stk OR (bbl/s... -- - - - 5 1 /2 9.02 ! --- --- ulcate(j- Elecmcswb(v) commem - -- - - ~ ---Pump Checks .. ~ ,, ~ ~ ~sr~ .-~~~. ~yr~~'s,.{ ~~'~' ~ m ~.~`~. ~ ~ ?,I. Pres(psl) SlowSpd _ Slspmis Enl%)- Drying $hakeF'Data ~ ~ -- --- ._ ~ .+:. t5k .~ ~ YS? ~~ y" ~Y~ t ~k d , ~',£.. ~ a~ ~ „..,v ~...a .~ - .~ r.3 ... 'Descriptlon Make ~ Model T NO ~ ~ ~- HG Dryer 1Derrick 1Derrick Mud Pumps: 2, Gardner-Denver, PZ-9 _- ~ -- -~-- ~- -- -- - ~ - - ---- No. Pwr (hp) Rod Diameter (In) i Shaker Screens 2~ 900.0 J Deck No. Screen No. Sor Sz X (In) Scr Sz Y (In) ,Liner Slze (In) Stroke (ink Vol/Stk OR (bolls... 1 1 200.000 1 2 200.000 5 1 /2 9.02 -~_ _- _ 1 3 200.000 Pum Checks_ 1 4 200.000 Strokes - __ ----- - ---- -- ------- --- - Pres (psi) Slow Spd (spm) Eff (%) Shaker Checks_ ~ No Dens OF (Ib/gal)...- Hrs (hrs)--__-, _-_ - - -- --- -- -- Shakers: SDescrlptlon?>' ...._. _-.. - __..- -- ..... L... ....... ..-.___-_.. - ............... ........- ...-.-_ .......`.`.1Make ~ Model ~-. ; xc Descriptlon Make Model HG Dryer IDemck .(Derrick ~- ---- - _ _.-. _ _ - ---- - _ . _ __.--- Shaker Screens Shaker Screens I screen Deck No. Sereen No. Scr Sz X in --. -_._._._.._ _____..._-_-_.--- -. ------_--.(-~ -------------Scr:SzY(in)-_----- -Deck No No. ScrSzX(in) SccSzY(in)- _ ____ _. 1 1 _ ---- 200.000 1 __ ~_ __ _~_ ___ 1 2 200.000 -- Shaker Checks ' 1 3 200.000 ~ bens OF (Iblgal) Dens OF Qblgalj Hrs (hrs) 1 4 200.000 i ~. ~ Shaker Checks + '- `. - -~-~- - Dens OF (Ib/gal)-. .. Hrs (hrs) _ _ Make Model Descriptlon ----~ -~ - Make Mods Centrifuge/Cyclone Checks '' HG Dryer _ Derrick Derrick banally overflow pwgaq overflow Rate (gpm)- Shaker Screens ---- - '~. Deck No. Screen No. Scr Sz X_(in) _ - - Scr Sz Y (in) _ - _ _ Dens OF (Ib/gal) Underflow Rate (gpm) 1 1 200.000 1 2 200.000 'Hours (hrs) -~ - Oil Under FI (%) ',Dens FD (Iblgal) 1 3 200.000 1 4 200.000 M, i~Additl~e~,Amours;s~~k~~~'t$E ,,,~~ `~~ +!~ ~i ~ ~~--~~~- ~----~- ~'- ---- -~ - bescription_ Cons. Daily Cost Vendor akerChecks - Dens OF (Ib/gaq Hrs (hrs). ,: ~~.~^~~ ~, 'v ,~ " ~ . ~ ~A ~ i t ~° - __ - s - - _ - -- ----- - --- ---- LastCastng"Check..:; . ~~'• ' ~7' -- -- ~----Date---- --- .-_ ___TYPe ------------ .. .~.., ~ r.~ - ~° ~ ~ 3 ., Report Printed• 4/2!201 76.70 j 95.30 18.60 """`" Test Date Bltlnventory ~ ~ ~~ ,~ ~ ~ ~~ ~BltType ~ ~~ ~ ~kemCost~ ~ ~ _. Cnm.~l;..nc .___. _._ I__ ____-.___L__ __ _.____.._-____. _ _ I _-__-__ ___ 1____ aampin i IADC Bit Dull TFA (Intl Noz) (ink BHA ROP (ft/hr) Noales (/32") IADC Codss Formation Name MD (ftKE Nanushuk Group 1,07 h, ,;ti .,, _ Base Permafrost 1,0° BHA No. Cum Depth (ft) SPP (psi) Flow Rate (gpm) TFO Reference Rot HL (10001.. Max. Hook Load (Ibf) NanUShuk tOpSet SSt. 2,37 _--_-- _.__. __ _ _...._._ _ Torok 2.95 WOB (10001bf) Interval ROP (fUhr) Total ROP (fuhrj Drllllny Time (hrs) Drilling Torque PU Hl. (10001bq Max. Over-r ull (Ibfj TOrOk Samd 1 7,18 Bit RPM (rpm) ~ ~MOtor RPM (rpm) ~ Cum Drill Time (hre) Off Bottom Torque Torque Units SO HL (t0001bf) HRZ 7,23 ~___ __ _ Kuparuk Sandstone Mbr 7,4C _ -- ~ - --- - - ---------Upper Kingak (Miluveach) 7,61 Hydraulic Calculations AV DP (ft/min) AV DC (klmin) err _ ___ _ ____ ____ _ Alpine Sandstone 8,42 _ _.__ .... __... i _. _ _ _ _ - ___.._ _.. -- - _ -- ------------ - _ BCU (Base Cret. 8,45 .Drill String Components Unconformity) Mtr Top Btm Bend Item Density Drift Conn 3z Conn sz gtm Angle COr1dUCt0~ Pipe, 1QO.OftK6 Jts Description Len (tt) OD (in) (Ibslft) Grade ID (in) tint lln) Top Thrd On) Thrd -0um Len (ft) (% Csg Run Data OD (in) Grade Wt (Ibs/l ..",.y,.,Q ""~~~" ORIGINAL HOLE Directional Surveys -- -- --. Date Descrip ___ _2/28/2007 _ _ MWD i. j i i v2s/2oo7 1s H-4o ~ 65.00 Surface Casing, 2,115.4ftKB -a:i.'+C.~"~..4oS.~.w`niiR~$:r'. ~- ~;~ - ~ 3. ~~`C'~n'°~s5:.£3~i:~] 1;u1 Csg Run Date OD (in) Grede I Wt (Ibs/ft) Kick Off Depth (ftKB) 2/16/2007 9 5/8 L-80 j 40.00 0.00 - I lnfermediate Casing, 8,423.1)ftK6 _ -- ._-_Csg Run Date OD (In) Grade Wt (Ibslft) 3115!2007 7 L-80 26.00 i~ 1 1 HALLIBURTON Sperry Drilling Services Surface Data Logging ,~ END OF WELL REPORT FEX, L.P. Amag uq #2 RECEIVED MAY 0 3 ~(}n? Abska Oil & Gas Cons. Cammis~io~.~ Anchorage TABLE OF CONTENTS 1. General Information 2. Daily Summary 3. Daily Operations (I.A.D.C.) 4. Morning Reports 5. Bit Record 6. Mud Reports 7. Show Reports 8. Survey Report 9. Days vs Depth 10. Data CD 11. Formation Evaluation Logs 12. Engineering Log HALLIBURTON Sperry Drilling Services GENERAL WELL INFORMATION ' Company: Rig: Well: Field: Borou h: g State: t Country: API Number: Sperry-Sun Job Number: ' Job Start Date: Job End Date (TD): Rig Release Date: ' Total Depth: North Reference: Declination: Dip Angle: Total Field Strength: Date Of Magnetic Data: ' Wellhead Coordinates N: Wellhead Coordinates W ' RKB: Ground Elevation: SDL Engineers: FEX, L.P. Doyon Arctic Wolf Amaguq #2 Exploration Barrow Alaska United States 50-279-20017-00 AK-AM-0004844276 8 Feb 2007 20 Mar 2007 21 Mar 2007 8751' MD; 8750' TVD True 20.315° 80.242° 57377 nT 11 Feb 2007 North 70° 23' 39.87" West 155° 47' 40.59" 95.30' 76.70' Tom Mansfield; Eugene Payne; Michelen Brinston Company Geologist: SSDS Unit Number: Jaque Ledbetter, Z. Kotelko 115 ~ HALLIBURTON Sperry Drilling Services ~~ DAILY SUMMARY FEX AMAGUQ #2 2_ DAILY SUMMARY 15 Feb 2007 Run in hole with 12 '/4" drilling assembly to drill surface hole. Drill from 80 ft measured depth (MD) to 487 ft MD. Pull out of hole to pick up measure while drilling (MWD) tools. While coming out of the hole tight spots were encountered at which time it was decided to circulate, and ream to bottom. Upon reaching total depth began to pull out of the hole; fewer tight hole sections encountered. Ran in hole and continued to drill surface section. 16 Feb 2007 ' Drill ahead from 487-1550 ft MD. The maximum total gas encountered was 151 units. Halt drilling operations for 3 hrs for top drive maintenance. 17 Feb 200T Complete drilling the 12'/4 in. section of the borehole by drilling from 1550 ft MD to casing point at 2133 ft MD. The maximum gas experienced was 244 units. Encountered tight spots while pulling out of the hole, ran back in, circulated and pulled out. 18 Feb 2007 Finished pulling the drill string out of the borehole, lay down the bottom hole assembly (BHA). Rig up for running casing and run the casing to total surface casing depth. Circulate hole clean, then clean and rearrange mud pits. 19 Feb 2007 Run into the hole with 32 stands of 4" drill pipe when the dart was accidentally dropped ahead of schedule. Pulled out of hole and ran back in with 8 %2" drilling assembly. Began to drill to remove the rubber dart and drill collar. 20 Feb 2007 ' Finish drilling out the rubber dart and drill dollar. Circulate high viscosity sweep to dean mud of rubber and metal cuttings. Cement casing while taking all cement returns at the cellar with a vac truck in place to dispose contaminated cement. While waiting on cement, crew nipple up, and blow out preventers, (BOP). 21 Feb 2007 Nipple down diverter stack and dismantle starter spool. Make up casing head and pressure test to 1100 psi for 10 min. Nipple up and test BOP to 5000 psi. Upper seals damaged on pipe ram blocks. These seals are replaced with new ones. ' 22 Feb 2007 Pressure test BOPE. Test annular pipe ram at 250 psi and 2500 psi, hold pressure for 10 mins each. Test upper pipe rams, manual kill and choke valves, HC kill, HCR valves, choke manifold, ' TRW valve and stabbing valve at 250 psi and 5000 psi, hold preesure for 10 mins each. Nipple up riser/jet lines and hole fill assembly. ' 23 Feb 2007 Rig up spill protection at flow nipple. Service rig and top drive and start picking up 4" drill pipe to rack in derrick. Circulate prior to pressure testing casing to 2500 psi. Trip out of hole and rack- ' back drill pipe and heavey weight drill pipe. Re-arrange Sperry tools in pipe barn. DAILY SUMMARY FEX AMAGUQ #2 24 Feb 2007 Make up and shallow test MWD tools. Run in hole with BHA and tag cement at 1944'. Drill out cement, float, and shoe. Drill 8%2" hole from 2133' to 2155'. Circulate and clean hole. Complete leak off test without formation breakdown. Pressure up and hold 10 minutes for a leak off equivalent of 16.0 ppg. Drill 8'/2" hole from 2155' to 2250'. 25 Feb 2007 Drill 8%2" hole from 2250' to 2749'. Service the rig and top drive. Continue drilling 8%2" hole from 2749' to 2999'. 26 Feb 2007 Drill 8'/2" hole from 2999' to 3186'. Service rig, top drive, blocks, and crown. Continue drilling 8%2" hole from 3186' to 3248'. Repair top drive. Resume drilling 8%2" hole from 3248' to 3435'. Lubricate rig. Continue drilling from 3435' to 3560'. 27 Feb 2007 Drill 8%" hole from 3560' to 4308' 28 Feb 2007 Drill 8%2" hole from 4308' to 4605'. Circulate high viscosity pill Trip out to shoe, swabbing occurred during trip with an overpull drag of 20,000 lbs. Continue pulling out of hole, drag occurring at 3440', 3019', 2887', and 2719'. Run in the hole from 2001' to 4438'; circulate bottoms up and work pipe. Tagged a bridge at 4532', kelly up and worked through it. Drill 8%" hole from 4605' to 4656'. 1 Mar 2007 Drill 8%2" hole from 4656' to 5188'. Attempt to unball bit at 5181' to 5188', sweep hole and drill seven feet. Circulate sweep around and work pipe. Pump slug and blow down all mud lines. Pull out of hole from 5188' to 108'. 2 Mar 2007 Finish with trip, stand back and lay down part of BHA. ' 3 Mar 2007 Pick up of BHA and the smart iron. Trip in the hole 22 stands of 4" drill pipe, circulate at the shoe and blow down top drive and mud lines. Continue to run in hole with remaining drill pipe. Ream from 5134' to 5189'. Drill from 5306' to 5680'. 4 Mar 2007 Drill from 5680' to 6149'. Pump sweeps at 6242' and 6449'. Some pump repairs necessary, during this. 5 Mar 2007 Continue drilling from 6553' to 6570' until generator went down. Repair generator, restore the power and reset all systems. Drill from 6570' to 6694'. Pump a sweep at 6726'. 6 Mar 2007 Drill from 6726' to 7379'. The maximum gas encountered was 4950 units. A sweep was pumped ' at 7309'. Circulate and work pipe at 7379' as per geologist orders. Change discharge valve and seat on #1 pump, and continue to drill to 7393'. Circulate and work pipe as per geologist orders, ' DAILY SUMMARY FEX AMAGUQ #2 continue to drill to 7400' with a 10 bbl loss to hole. Circulate and work pipe as per geologist orders and pump sweep around. 7 Mar 2007 Short trip back inside the shoe at 2115'. During the trip the hole pulled tight at 6960', 6643' and 5680', back-ream from 5680' to 4625'. During trip pump a lost circulation nut plug sweep at 5680' to control mud losses. Slip and cut drill line then ran back in the hole to 6668' without a problem.. At 6668' the hole became tight. Washed and reamed the tight spots at 6732' and 6785'. ' Continued to run in hole to 7400', tagged bottom, no fill had accumulated. Hole took approximately 120 bbls of mud over past 24 hours. Broke circulation and brought the pumps up slowly. 8 Mar 2007 Circulated a sweep, pumped dry job and blew down mud lines with air. Pulled out of the hole and lay down jars and MWD tools. Down loaded the MWD tools and then rigged up Baker Atlas E-line ' and log. Ran in hole with E-line tools to 7396', 4' of fill had developed. Cut sidewall cores and pulled out of hole to change core bit. ' 9 Mar 2007 Cut wireline cores with Baker Atlas. Pulled out of hole and rigged down wireline and logging tools. Test all components of the BOP stack'. 10 Mar 2007 Finish testing BOP. The drill crew and MWD personell made up BHA #4. Run in the hole, conduct a MWD shallow pulse test and circulate bottoms up at 2151 feet. Run in the hole to 7390', and there circulate and condition mud to 11.2 ppg. The bit tagged fill two feet off bottom. 11 Mar 2007 Control drill from 7400 to 7450 at a rate of 20 to 25 feet per hour. Drill ahead without control drilling to 8326'. 12 Mar 2007 Drill ahead from 8326' to 8389' and circulate out samples for geologist. Control drilled ahead from 8389' to 8433' and again circulated out samples. Circulate hole clean and short trip, pumping out backreaming in preparation for running 7" casing. A tight spot was encountered at 7523'. Ream back from 7513' to 7300'. Monitored the well for flow and ran back to bottom, 3' of fill. Circulate hole until clean. During circulation 20 bbls of mud lost to the formations. Spot pill and pump out of hole to 7300' then pull out. A tight spot at 7025'. Pull out of hole and monitor well at shoe. 13 Mar 2007 Pull out of the hole, down load MWD tools, and rig up for casing. Start running casing to 2190' and circulate two bottoms up with gas reaching 178 units. Static losses while running first 45 joints of casing joints 3.5 bbls.(0.6 bbls/hr). 14 Mar 2007 Continue running casing at 2 minutes per joint to 6049'. Sixty eight percent of mud pumped lost, mud losses to this point 271.4 bbls. Continue running casing to 8273 and break circulation, trip gas 9980 units. Rotate casing from 8273' to 8392'. Circulate and wash through bridges and fill. 15 Mar 2007 DAILY SUMMARY FEX AMAGUQ #2 Rotate casing from. 8395' to 8433'. Casing did not go to total depth, had to lay down one joint of casing and pick up landing joint and casing hanger. Landed casing at 8423' with total mud losses of 385 bbls. Cement the casing into place with a two stage cement job. 16 Mar 2007 Pick up BHA #5 and run in hole. Tag cement collar at 7384', and drill it out. Run in hole to 8335' and drill out #2 stage collar. Drill out cement and float at 8378' and test the 7" casing. Circulate and lower mud weight to 9.4 ppg. 17 Mar 2007 From 8405' to 8433' drill out cement and casing shoe. At 8426' 7725 units of gas recorded. The hole was extended by drilling new formation from 8433' to a total depth of 8750'. Circulate bottoms up and short trip to the casing shoe. Run to bottom and ream from 8712' to 8751'. Circulate and condition hole for wireline logs. Short trip back, toal gas units of 7158. 18 Mar 2007 Run wireline logging tools. 4 #2 DAILY ACTIVITY (LA.D.C.) FEX - AMAGUQ ' 3_ DAILY ACTIVITY ~I_A_D_C_) Time El apsed Operations Breakdown Shrs) Time 02-15-2007 00:00-04:00 4.00 Repair flow line "T". Required disconnecting flowline, lifting "T" & catcher can to seal. 04:00-05:00 1.00 Drill 12 '/a" hole from 83' to 100'. 05:00-07:00 2.00 Tightened up factory built spline. 07:00-13:00 6.00 Drill 12 '/a" hole from 100' to 489'. Trip out for MWD. 13:00-15:00 2.00 Trip out to pick up BHA. 15:00-24:00 9.00 Pick up MWD & download tools. 02-16-2007 00:00-03:30 3.50 Cold weather. Pick up BHA. Calibrate draworks enconder. ' 03:30-04:00 0.50 Recalibrate TESCO torque indicator. 04:00-12:00 8.00 Drill 12 '/n" hole from 489 to 989'. 12:00-16:00 4.00 Sheared plates off compensator on TESCO topdrive. Removed components & operate without compensators. ' 16:00-24:00 8.00 Drill 12 '/a" hole from 989 to 1415'. 02-17-2007 00:00-09:00 9.00 Drill 12 ~/a" hole from 1415 to 1863'. 09:00-09:30 0.50 Rig Service. 09:30-15:00 5.50 Drill 12 '/a" hole from 1863 to 2133'. 15:00-17:00 2.00 Circulate hole. 17:00-21:00 2.00 Trip out to 1000'. 21:00-22:00 1.00 Circulate tight hole. 22:00-23:30 1.50 Trip in hole. 23:30-24:00 0.50 Circulate & condition hole. 02-18-2007 00:00-01:30 1.50 01:30-04:00 2.50 04:00-06:00 2.00 06:00-11:00 5.00 11:00-12:00 1.00 12:00-12:30 0.50 12:30-15:30 3.00 15:30-16:30 1.00 16:30-20:00 3.50 20:00-21 :00 1.00 21:00-23:00 2.00 23:00-24:00 1.00 02-19-2007 00:00-02:00 2.00 02:00-03:00 1,00 03:00-05:00 2.00 05:00-07:00 2.00 07:00-08:30 2.50 08:30-11:00 2.50 11:00-12:00 1.00 12:00-14:00 2.00 14:00-14:30 0.50 14:30-16:30 2.00 16:30-17:00 0.50 17:00-19:00 2.00 19:00-22:00 3.00 22:00-24:00 2.00 Circulate hole clean prior to POOH. ECD dropped from 11.2 to 10.8. Hole clean. Pulled tight from 1000' to surface. Bit & motor were packed with clay. PJSM, Lay down 2 collars, remove nukes from tool. Download MWD, Lay down 8" BHA. PJSM, clean floor. Service topdrive. Rig up casing running tools. Make up hanger assembly. Make dummy assembly to ensure proper placement. Run 9 5/8" casing. Lay down cement head. Rig down cement head. Circulate & reciprocate casing. Land Casing Hanger. Lay down extra joint casing. Land casing hanger & Lay down casing running tools. Make up centrilizers & stab in sub. Trip in hole /steam every stand. Pick up pup. Stab in float collar. Lay down cement head. Break circulation. Pump 285 stks to 2700 psi. Rig down cement head. Dart was gone. Blow down lines. POOH. Break off XO & stab in sub. Clean Rig floor. Pick up bit sub. Pick up casing joint. Attempt to break circulation -attempt failed. Pick up casing equipment. Lubricate top drive. Lay down casing equipment & one joint of casing. Clean floor. PJSM. Lay down Bottom hole assembly #2, service break jars. Trip in hole 24 stands. Tagged plug. Drilled plug C~ 2031'. 1 DAILY ACTIVITY (I.A.D.C.) FEX - AMAGUQ #2 Time Elapsed Operations Breakdown (hrs) Time 02-20-2007 00:00-06:00 6.00 06:00-08:30 2.50 08:30-12:00 3.50 12:00-14:30 2.50 14:30-15:00 1.00 15:00-16:00 1.00 ' 16:00-17:45 1.75 17:45-18:30 0.75 18:30-21:30 3.00 21:30-24:00 2.50 Drill plug C~ 2031' with 16-35 rpm, 2.5-5K WOB, 2500 ft/Ibs Torque average. Flow check -static. POOH & lay down BHA. Break collar off joint of casing. Pick up pony collar. Stab into stump. Swedge into casing & hook up cement line. Circulate hole ~ slow rate of 44 spm to 70 spm. Pull & reciprocate casing to get thick mud out of hole. Blow down lines & PJSM on cement job. Head up Cementers. Pressure test lines -test OK. Cement 9 5/8" casing. Lost Time & had low turbulent flow for Fast 80 bbls of displacement. Wait on cement. Nipple down diverter / to install wellhead. ~ 02-21-2007 00:00-06:30 6.50 Nipple down diverter stack & dismantle starter spool. 06:30-08:00 1.50 Make up casing head & pressure test to 1100 psi for 10 min - OK. 08:00-21:00 13.00 Nipple up 5000# BOPE 21:00-24:00 3.00 Upper Seals Shot on pipe ram blocks -replace with new ones. 02-22-2007 00:00-01:30 1.50 Continue to clean pipe rams of old mud & change rubbers. 01:30-20:00 18.50 Pressure test ROPE. Test annular 250/2500 psi for 10 min each (OK). Test upper pipe rams, manual kill & choke valves, H.C. kill & H.C.R. valves, choke manifold, TRW valve & stabbing valve at 250/5000 psi (all tests 10 min each). 20:00-21:00 1.00 Test plug pulled 7 install wear -ring. Had to turn single upside down to set wear bushing. Incorrect X/O sub for setting tool.. 21:00-24:00 3.00 Nipple up riser. Jet lines & hole fill. ' 02-23-2007 00:00-01:30 1.50 Rig up spill protection at flow nipple (Katch Kan). 01:30-10:00 8.50 Pick up 4" DP= & rack in derrick. 10:00-10:30 0.50 Service rig & top drive. 10:30-16:00 5.50 Pick up 4" DP & rack in derrick. 16:00-16:30 0.50 Circulate prior to pressure testing casing. 16:30-17:00 0.50 Pressure test casing to 2500 psi. 17:00-19:00 2.00 Trip out. Rack back DP & HWDP 19:00-21:00 2.00 Sperry tools had to be re-arranged in pipe barn when time to pick ' up. 21:00-24:00 3.00 Handle Sperry tools. 02 24-2007 : 00:00-05:00 5.00 Make up & shallow test MWD tools 05:00-06:00 1 1.00 Run in with MWD tools & tag. cement at 1944' KB. 06.00-12.00 6.00 Drill out cement, float, & shoe. 12:00-15:30 3.50 Drill 8'/z" hole from 2133' to 2155'. 15:30-16:30 1.00 Circulate & clean hole prior to F.I.T. 16:30-17:00 0.50 Attempt formation LOT - no break down. Pump up to 714 psi at 7 gpm, FIT at 714 psi for 10 min (16.0 ppg EMW). 17:00-24:00 7.00 Drill 8'/z" hole from 2155' to 2250'. 02-25-2007 00:00-15:00 15:00 Drill 8'/z" hole from 2250' to 2749'. 15:00-15:30 0.50 Service rig & top drive. 15:30-24:00 8.50 Drill 8'h" hole from 2749'-2999'. ' 02-26-2007 00:00-07:30 7.50 Drill 8'/z" hole from 2999' to 3186' 07:30-08:00 0.50 Service rig, top drive, blocks, & crown. 08:00-10:00 2.00 hole from 3186' to 3248'. Drill SYz 10:00-12:00 2.00 ;; Repair Tesco top drive- tube anchor bracket broke off torq tube. 12:00-13:30 1.50 Continue repairs to top drive. 13:30-18:00 4.50 Drill 8'/z hole from 3248' to 3435'. 18:00-18:30 0.50 Lubricate rig. 18:30-24:00 5.50 Drill 8'/z" hole from 3435' to 3560'. 2 DAILY ACTIVITY (LA.D.C.) FEX - AMAGUQ #2 Time Elapsed Operations Breakdown (hrs) Time 02-27-2007 00:00-05:00 5.00 05:00-05:30 0.50 05:30-12:00 6.50 12:00-18:00 6.00 18:00-18:30 0.50 18:30-24:00 5.50 02-28-2007 00:00-05:30 5.50 05:30-06:30 1.00 06:30-07:30 1.00 07:30-09:30 2.00 09:30-12:00 2.50 12:00-15:30 3.50 15:30-16:00 0.50 16:00-17:00 1.00 17:00-19:30 2.50 19:30-20:30 1.00 20:30-22:30 2.00 22:30-24:00 2.00 Drill 8'/z" hole from 3560' to 3685'. Lubricate rig. Drill 8'/z" hole from 3685' to 3872'. Drill 8'/z" hole from 3872' to 4183'. Lubricate rig. Drill 8'/z" hole from 4183' to 4308'. Drill 8'/z" hole from 4308' to 4556'. Repair liner cooling pump on #1 mud pump. Drill 8'/z" hole from 4556' to 4605'. Circ HiVis pill & build mud volume. Pump slug down topdrive & mud lines. Trip out to shoe. Hole swabbing & dragging -max overpull 20k. Continue POOH from std # 15 to std # 42, dragC~3 3440', 3019',2887' ,2719' ,wiped C~ shoe. Lubricate rig. Weld torque tube brace, shut down top drive for service. RIH from 2001' to 4438'. Circulate bottoms up & work pipe. Tag bridge ~ 4532', kelly up & work thru bridge. Drill 8'/z" hole from 4605' to 4656'. ' 03-01-2007 00:00-12:00 12.00 Drill 8'/z" hole from 4656' to 5119'. 12:00-13:30 1.50 Drill 8'/z" hole from 5119' to 5188'. 13:30-15:30 2.00 Attempt to unball bits 5181' to 5188', sweep hole & drill 7'. 15:30-16;30 1.00 Circulate sweep around & work pipe. 16:30-17:00 0.50 Pump slug & blow down all mud lines. 17:00-22:00 6.00 POOH from 5188' to 753 . 22:00-24:00 2.00 POOH with BHA #3 to stablizer 108'. 03-02-2007 00:00-02:30 2.30 Finish with stand back & lay down part of BHA. 02:30-03:30 1.00 PJMS for nuke sources, remove sources, lay down pony collar, down load MWD. 03:30-05:30 2.00 Break out bit, lay down pony collar & stand back last collar. 05:30-07:30 2.00 Break out saver sub on top drive & repair hyddaulic mud pump. 07:30-08:30 1.00 Change elevators, pick up box down joint XO & wear ring puller, pull & clean wear ring. 08:30-10:30 2.00 Change mud saver on top drive, problem with backoff ring. 10:30-12:30 1.50 Rig up to test BOP. 12:30-19:00 7.00 Test BOP's. 19:00-19:30 0.50 Lubricate rig. 19:30-20:30 1.00 Blow down all lines from test & all mud lines, pull test plug, ~, install wear ring. ~ 20:30-21:00 0.50 PJSM on picking up BHA#4. 21:00-24:00 3.00 Picking up BHA#4. 03-03-2007 00:00-01:00 1.00 Pick up BHA "smart iron". 01:00-02:00 1.00 Plug in & upload MWD. 02:00-03:00 1.00 Pick up bat tool, PJSM on nuke sources, load nuke sources. 03:00-04:00 1.00 Pick up NMF & XO, topdrive on, pump up shallow hole test & survey. 04:00-07:30 3.50 Blow down topdrive & mud lines, continue with HWDP & RIHI with 22 stds. 07:30-08:00 0.50 Cirulate at shoe, blow down topdrive & mud lines. 08:00-10:30 2.50 RIH with remaining DP. ' 10:30-12:00 1.50 Ream from 5134 to 5189. 12:00-12:30 0.50 Wash to bottom. 12:30-15:00 2.50 Drill 8'/z" hole from 5189 to 5306'. 15:00-15:30 0.50 Lubricate rig. 15:30-24:00 8.50 Drill 8'/z" hole from 5306 to 5680'. 03-04-2007 00:00-09:30 9.50 Drill 8'/z" hole from 5680 to 6115'. 09:30-11:00 1.50 Condition mud & circulate, repair #1 mud pump. 11:00-11:30 0.50 Drill 8'/z" hole from 6115 to 6135'. 11:30-12:00 0.50 Condition mud & circulate. Repair #1 mud pump. 12:00-12:30 0.50 Circulate & condition mud while fixing #1 pump, work pipe. 3 DAILY ACTIVITY (LA.D.C.) FEX - AMAGUQ #2 Time Elapsed Operations Breakdown (hrs) Time ' 12:30-21:00 8.50 Drill 8'/z" hole from 6135 to 6429' -pump sweep C~ 6242'. 21:00-21:30 0.50 Lubricate rig. 21:30-24:00 2.50 Drill 8'/z" hole from 6429 to 6553' -pump sweep ~ 6449'. 03-05-2007 00:00-01:00 1.00 01:00-02:30 1.50 02:30-08:30 6.00 08:30-12:00 3.50 12:00-12:30 0.50 12:30-13:00 0.50 13:00-13:30 0.50 13:30-14:00 0.50 14:00-19:30 5.50 19:30-20:00 0.50 20:00-24:00 4.00 03-06-2007 00:00-12:00 12.00 12:00-18:00 6.00 18:00-19:00 1.00 19:00-19:30 0.50 19:30-21:00 1.50 21:00-21:30 0.50 21:30-22:00 0.50 22:00-23:00 1.00 23:00-24:00 1.00 03-07-2007 00:00-01:00 01:00-04:30 04:30-11:00 11:00-11:30 11:30-15:00 15:00-16:30 16:30-17:00 1 7:00-20:30 20:30-22:30 22:30-23:00 23:00-24:00 03-08-2007 00:00-01:30 01:30-07:00 07:00-07:30 07:30-10:00 10:00-16:30 16:30-24:00 Drill 8'/z" hole from 6553 to 6570'. Generator went down, get power on, reset all systems. Drill 8'/z" hole from 6570 to 6633'. Condition mud & circulate. Repair #2 mud pump. Drill 8'/z" hole from 6570 to 6637'. Work on changing rubber in 4" stand pipe under rig floor. Drill 8'/z" hole from 6637 to 6638' -pump sweep ~ 6637'. Change pop off valve on #2 pump. Drill 8'/z" hole from 6638 to 6694'. Change swab in #1 pump. Drill 8'/z" hole from 6694 to 6726' -pump sweep C~ 6726'. Drill 8'/z" hole from 6726 to 7177'. Drill 8'/z" hole from 7177 to 7379' - 4950 units of gas ~ 7239, sweep ~ 7309. Circulate & work pipe ~ 7379' as per Geologist orders. Change discharge valve & seat on #1 pump. Drill 8'/z" hole from 7379 to 7393'. Circulate & work pipe as per Geologist orders. Drill 8'/z" hole from 7393 to 7400' - well took a 10 bbl drink ~ 7400'. Circulate & work pipe as per Geologist orders C~ 7400'. Pump sweep around. 1.00 Circulate out sweep & pump pill. Blow down lines. 3.50 Wiper trip. Tight spots at 6960', 6643' & 5680'. 6.50 Back ream from 5680' to 4625' with pump. 0.50 Pump nut plug sweep. 3.50 Wiper rip to 2115' (9 5/8" shoe). Slow hoist to avoid swabbing. 1.50 Slip & cut drilling line. Clean floor, hold pre-job safety meeting. 0.50 Service Rig. 3.50 RIH to 6668' - no hole problems. 2.00 Wash & ream. Tight at 6668', 6732', & 6785'. 1.00 RIH to 7400' 1.00 Tag bottom with no fill. Break circulation slowly. Pump sweep & continue to circulate until hole clean. 1.50 Circulate sweep, pump pill & blow mud lines with air. 5.50 POOH to log -max overpull 7 L at 6960' (wipe clear). 0.50 Rig service. Flow check at shoe. 2.50 POOH to log. Lay down jars. 6.50 Lay down MWD tools & download data. 7.50 Rig up & run Baker Atlas E-line logs. RIH to 7396' (4 feet of fill). Cut sidewall cores. POOH with E-line tools to change core bit. 03-09-2007 00:00-01:00 1.00 01:00-06:30 5.50 06:30-13:00 6.50 13:00-15:00 2.00 15:00-16:30 1.50 16:30-17:00 0.50 17:00-18:30 1.50 18:30-24:00 5.50 03-10-2007 00:00-03:30 3.50 Logging Run #1 - RCOR-GR / 13 Core attempts -recover 2 cores. Logging Run #2 - RCOR-GR / 2 Core attempts -recover 2 cores. Install new bit & sample tube. Logging Run #3 - RCOR-GR / 15 Core attempts -recover 11 cores. SideWall core bit stuck -shear off at 6841' (3/8" stick out into well bore). RCOR tool stuck, pull free & hoist to surface. Rig down logging tools & wireline. Clean up rig floor, hold safety meeting for BOP test. Drain stack. Pull wear ring. Pick up test plug. Test annular to 250/2500 psi for 10 minutes. Test all RAMS, Dart valve, TIW, choke & kill lines, upper & lower IBOP valves & all choke valves to 250/5000 psi for 10 minutes. Continue with BOP test. Test #7 lower pipr rams. Test #8 blind rams valves 3, 6 ,9 & 10. Tighten flange betweedn kill HCR & choke. Test blinds valves 2,5 & 10. 4 DAILY ACTIVITY (LA.D.C.) FEX - AMAGUQ #2 Time Elapsed (hrs) Time Operations Breakdown 03:30-04:30 1.00 Rig down BOP test. Blow down test pump, choke manifold, choke & kill lines. Install wear bushing. Run in 2 lockdowns. Line up choke & BOP valves. 04:30-07:30 3.00 Pick up motor, float sub & bit from shed. Latch RLL & Nuke from derrick. Break in mousehole. Heat RLL & change out lithium power source. Install pulser. 07:30-10:30 3.00 Lay down topdrive to MWD. Pump through & steam to warm tools. Upload info. 10:30-11:00 0.50 Shallow hole pulse test. Blow down top drive & mud lines. 11:00-12:00 1.00 PJSM-Nukes & load sources in MWD. 12:00-14:00 2.00 Pick up BHA #5. 14:00-15:00 1.00 RIH to 2151'. 15:00-15:30 0.50 Circulate bottoms up & blow down lines. 15:30-17:00 1.50 RIH to 4271' 17:00-17:15 0.25 Fill pipe & blow down lines. 17:15-18:30 1.25 RIH to 6268'. 18:30-18:45 0.25 Fill pipe & blow down lines. 18:45-20:00 1.25 RIH to 7390'. 20:00-22:30 2.50 Circulate & condition mud to 11.1+ ppg. 22:30-23:00 0.50 Lubricate rig., 23:00-24:00 1.00 Make connection. Work on Pump. Tag 2 feet of fill. 03-1 1 -2007 00:00-02:00 2.00 Drill 8'/z" hole from 7400 to 7450'. Control drill at 20-25 ft/hr. 02:00-03:00 1.00 Time change 02:00 to 03:00. 03:00-12:00 9.00 Drill 8'/z" hole from 7450 to 7827'. 12:00-13:00 1.00 Drill 8'/z" hole from 7827 to 7889' 13:00-13:15 0.25 Slow pump rate 44 spm at 385 psi, 55 spm at 605 psi at 7889'. 13:15-24:00 10.75 Drill 8'/z" hole from 7889 to 8326'. 03-12-2007 00:00-03:30 3.50 Drill 8'/z" hole from 8326 to 8389' 03:30-04:00 0.50 Circulate out sample from 8389'. 04:00-05:30 1.50 Control drill 8'/z" hole from 8389 to 8433'. 05:30-08:00 2.50 Circulate up sample from 8433'. Continue to circulate hole clean. 08:00-12:00 4.00 PJSM & pump out of hole from 8433' backreaming. Tight spot at 7523'. Wipe tight spot clear. 12:00-12:30 0.50 Wash & ream from 7513' to 7300'. 12:30-13:30 1.00 Monitor well. Blow down all mud lines. RIH to 8433' - 3' of fill. 13:30-15:30 2.00 Circulate sweep around & circulate until clean. Pump away 20 bbls. 15:30-16:00 0.50 Monitor well, pump pill & spot. 16:00-18:00 2.00 Pump out of hole to 7300'. 18:00-19:00 1.00 POOH. 19:00-19:15 0.25 Pump out of hole at 7025'. Tight spot. Went through without pumps. 19:15-20:30 1.25 POOH. 20:30-21:00 0.50 Pump slug & blow down all mud lines. 21:00-24:00 3.00 POOH to 2094'. Monitor well at the shoe. 03-13-2007 00:00-02:30 2.50 Monitor well at shoe. Continue to POOH to BHA. Monitor well. Stand back HWDP & Lay down jar. 02:30-03:00 0.50 Lay down NMF collars & stabilizer. 03:00-04:00 1.00 PJSM. Unload nuke sources. 04:00-06:30 2.50 Lay down Bat collar. Download RLL. 06:30-08:00 1.50 Lay down all "smart iron", mud motor, bit, XO's & handling subs. 08:00-08:30 0.50 Pull wear bushing. 08:30-11:30 3.00 7" rams on location don't fit BOP. Obtain variance from state. Build 4"X7" safety joint. Load Tesco casing tool in pipe shed. 11:30-12;00 0.50 PJSM & begin to rig up Tesco casing tool. 12:00-17:00 5.00 Continue with rig up of Tesco casing tool. Torque up landing joint. Make dummy run. 17:00-23:00 6.00 PJSM. Make up shoe. Run 51 joints casing to 2190'. 23:00-24:00 1.00 Break circulation. Circulate 2 bottoms up. Monitor well. 5 DAILY ACTIVITY (LA.D.C.) FEX - AMAGUQ #2 ' Time Elapsed Operations Breakdown (hrs) Time 1 03-14-2007 00:00-12:0012.00 Run 7" casing. Slack off slowly 2 min per joint.. Loosing fluid at 68% of fluid pumped & pipe displacement while running. 12.00 hrs - joint 145 at 6049'. 12:00-20:00 8.00 Continue running casing from 6049 to 8273'. Break ' circulation. 200:00-24:00 4.00 Rotate from 8273 to 8392'. Circulate & wash through bridges & fill. 03-15-2007 00:00-10:3010.50 10:30-11:00 0.50 11:00-12:00 1.00 12:00-13:00 1.00 13:00-15:00 2.00 15:00-19:00 4.00 19:00-21:00 2.00 21:00-24:00 3.00 03-16-2007 00:00-01:30 1.50 01:30-02:00 0.50 02:00-06:30 4.50 06:30-07:30 1.00 07:30-08:30 1.00 08:30-09:30 1.00 09:30-10:00 0.50 10:00-11:00 1.00 11:00-12:00 1.00 12:00-16:00 4.00 16:00-17:45 1.75 17:45-19:00 1.25 19:00-20:00 1.00 20:00-21:00 1.00 21:00-21:30 0.50 21:30-24:00 2.50 03-17-2007 00:00-00:30 0.50 00:30-02:30 2.00 02:30-12:00 9.50 12:00-19:30 7.50 19:30-20:00 0.50 20:00-22:00 2.00 22:00-24:00 5.00 Rotate & pump 7" casing from 8395' to 8433'. Lay down 1 joint 7". Pick up landing joint & hanger. Land 7" casing at 8423'. Circulate at 48 spm to establish loss rate. Circulate & condition mud. Rig up cement head & cement. Circulate & wait on cement. PJSM & cement stage #2. Rig down cement head. Blow down lines. Lay down landing joint. Set pack off & pressur up to 5000 psi. Held for 10 min. Rig down Tesco casing running tool. Lay down casing tool. Put bales, stabbing guide & safety lines on top drive. Install wear bushing. PJSM & pick up BHA#6, bit, motor, MWD. Upload MWD. Pick up NMF's, STB, XO. Pump shallow hole pulse test. Test annular to 2500 psi for 10 minutes (Pason charted). Blow down topdrive, mud line, kill line. Run in 5 stands HWDP. Pick up jars & 4 stands HWDP. TIH with 4" DP. Continue to RIH from 1045 to 7384'. Tag stage collar. Break circulation. Drill out collar. Trouble shoot Tesco, repair. Continue to RIH to 8335'. Drill out #2 stage collar at 8335'. Cement, float at 8378'. Blow down top drive. Rig up to test casing. Test 7" casing. Blow down kill line, choke line, choke manifold. Drill cement & shoe from 8405' to 8433'. Drill 6" hole from 8433' to 8615'. Drill 6" hole from 8615' to 8750' TD. Reciprocate pipe & circulate bottoms up. Blow down top drive. Monitor well, static. POOH to shoe. Break circulation. Ream shoe track. Monitor well, static. RIH to 8712'. Ream to 8750.3' Reciprocate & circulate bottoms up. Pump 51 bbls pill. Spot 5 bbls outside bit. 6 Customer: FEX Report No.: 1 ' ? . ~~ Well: Amaguq #2 Date: 16/02/2006 Sp®rry Drilling SBrVICBB Area: North Slope Depth 473 Mudiogger's Morning Report Lease: Exploration Footage Last 24 hrs: 395 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-MW-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 50 ft/hr ( 278 ft/hr C~ 124 ) Gas* 0 units 1 unit: ( 2 units (~ 105 ) Sample Quality ~ Good ~ Fair ~ Poor Pump and Flow Data Drilling Pumps 45 spm Flow rate 280 gpm Pump Capacity 4.67 gps Pump Liner & Strk 6X9 in. Pump Pres 300 psi Mud Wt In 10.00 ppg Visc 11 secs API filt 7.0 ml HTHP ml Mud Wt at Max Gas 10.0 ppg Mud Wt Out 10.00 ppg PV 28 cP YP 28 Ibs/100ft2 Gels 10 \ 17 \ 21 MBT 1.0 pH 7.8 Sd 0.6 Bit No.: 1 Type: HGC MXL-1 Bit Size: 12 1/4 Jets: 3 x 20 1 x 10 x TFA: 1.5460 Wt On Bit: 8.00 RPM: 60 Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 473 ft Trip Gas: 0 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 80 % %Coal 10 %Sst 10 %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 78 to 473 2 1 5 0 0 0 0 to to to to to 24 hr Recap RIH to drill. Drill to 473 ft MD. POOH to ick up MWD tools. Ex erienced ti ht s ots while POOH. Make u 12.25" drillin assembl .RIH and start to drill. Logging Engineer: Tom Mansfield/Eugene Payne * 10000 units = 100% Gas In Air Customer: FEX Report No.: 2 ~°. Well: Amaguq #2 Date: 17/02/2006 Sperry Orillir~g Services Area: North Slope Depth 1550 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 750 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 75 ft/hr 93 ft/hr ( 212 ft/hr ~ 1288 ) Gas' 0 units 1 unit: ( 151 units C~ 1066 ) Sample Quality ~ Good ~ Fair x^ Poor Pump and Flow Data Drilling Pumps 80/82 spm Flow rate 511 gpm Pump Capacity 8.52 gps Pump Liner & Strk 6X9 in. Pump Pres 1390 psi Mud Wt In 10.10 ppg Visc 53 secs API Tilt 6.4 ml HTHP ml Mud Wt at Max Gas 10.0 ppg Mud Wt Out 10.10 ppg PV 13 cP YP 29 Ibs/100ft2 Gels 10 \ 14 \ 26 MBT 1.5 pH 9.0 Sd 2.2 Bit No.: 1 Type: HGC MXL-1 Bit Size: 12 1/4 Jets: 3 x 20 1 x 10 x TFA: 0.9970 Wt On Bit: 30.00 RPM: 87 Hrs. On Bit: 18.2 Total Revs on Bit: Footage for Bit Run 1463 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm. Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 90 % %Coal 10 %Sst %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 690 to 785 45 26 2901 0 0 0 0 785 to 1100 151 59 6305 0 0 0 0 1100 to 1370 65 41 4502 0 0 0 0 1370 to 1550 121 78 8498 7 1 0 0 to to 24 hr Recap RIH to drill 12 1/4" section from 487 ft MD. Stop for top drive maintence for 3 hrs. Drill forward. Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air : 3 Customer: FEX Report No ~ . Well: Amaguq #2 Date: 18/02/2006 sp®rry drilling S®rvices Area: North Slope Depth 2133 udlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 583 Rig: Arctic Wolf Rig Activity: POOH Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 56 ft/hr ( 180 ft/hr C°3 2036 ) Gas` 0 units 78 unit: ( 244 units C°3 1774 ) Sample Quality ~ Good x^ Fair ~ Poor Pump and Flow Data Circulating Pumps 85/79 spm Flow rate 520 gpm Pump Capacity 8.67 gps Pump Liner & Strk 6X9 in. Pump Pres 1516 psi Mud Wt In 10.40 ppg Visc 51 secs API filt 4.8 ml HTHP ml Mud Wt at Max Gas 10.3 ppg Mud Wt Out 10.40 ppg PV 16 cP YP 25 Ibs/100ft2 Gels 10 \ 21 \ 28 MBT 2.4 pH 10.0 Sd 2.75 Bit No.: 1 Type: HGC MXL-1 Bit Size: 12 1/4 Jets: 3 x 20 1 x 10 x TFA: 0.9970 Wt On Bit: 30.00 RPM: 83 Hrs. On Bit: 27.0 Total Revs on Bit: Footage for Bit Run 1470 Trip Depth: 2133 ft Trip Gas: 26 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom:. ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 1770 to 1780 244 90 29121 0 8 0 0 to to to to to 24 hr Recap Drill 12 1/4" section from 1550 ft MD to Casin Point of 2133 ft MD. Ex erienced ti ht s ots and started to run back in hole from 1053 ft MD to TD. Circulate. Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air : 4 Customer: FEX Report No ~a . Well: Amaguq #2 Date: 19/02/2006 Sparry Grilling s®.-..~~®s Area: North Slope Depth 2133 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Prepare to cmt Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 0 ft/hr ( 0 fUhr @ 0 ) Gas" 0 units 0 unit: ( 0 units C°3 0 ) Sample Quality ~ Good x0 Fair ~ Poor Pump and Flow Data Pumps 0 spm Flow rate 0 gpm Pump Capacity 0 gps Pump Liner & Strk 6x9 in. Pump Pres 0 psi Mud Wt In 10.30 ppg Visc 57 secs API filt 8.2 ml HTHP ml Mud Wt at Max Gas 10.3 ppg Mud Wt Out 10.30 ppg PV 21 cP YP 29 Ibs/100ft2 Gels 11 \ 21 \ 26 MBT 10 pH 8.6 Sd 2.5 Bit No.: Type: Bit Size: Jets: x x x TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 2133 ft Trip Gas: 116 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to _ to to 24 hr Recap POOH and la down BHA. Ri ed u for casin 'ob. Run casin to TD. Circulated hole clean. Clean and rearran a mud in its. Waitin to start cementin Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX : 5 Re ort No ~ ~ ~° ' Well: Amaguq #2 . p Date: 20/02/2006 Sperry drilling Services Area: North Slope Depth 2133 Mudlogger's Morning Report Lease: Rig: Job No.: Exploration Footage Last 24 hrs: 0 Arctic Wolf Rig Activity: Drilling Collar AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 0 ft/hr ( 0 fUhr C~ 0 Gas` 0 units 0 unit: ( 0 units C~ 0 Sample Quality ~ Good ~ Fair ~ Poor ) ) Pump and Flow Data Circulating Pumps 61 spm Flow rate 193 gpm Pump Capacity 3.21 gps Pump Liner & Strk 6X9 in. Pump Pres 233 psi Mud Wt In 9.90 ppg Visc 5o secs API filt 8.5 ml HTHP ml Mud Wt at Max Gas 9.9 ppg Mud Wt Out 9.90 ppg PV 15 cP YP 23 Ibs/100ft2 Gels 10 \ 19 \ 21 MBT 5.0 pH 8.0 Sd 1.0 Bit No.: 2 Type: HGC MXL-1 Bit Size: Wt On Bit: 2.40 RPM: 24 Hrs. On Bit: 8 1/2 Jets: 3 x 16 x x TFA: 1.7700 4.1 Total Revs on Bit: Footage for Bit Run Trip Depth: 2133 ft Trip Gas: Short Trip Depth ft Short Trip Gas: Tight Spots: to to 18 Mud Cut: ppg Trip CI: ppm Mud Cut: _ppg Short Trip CI: ppm to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ft units ft units ft units ppg ft units ppg ppg ft units ppg ppg ft units ppg ppg ft units ppg Depth Gas in units Max Background to to to to to to GAS PEAKS Chromatograph in ppm C1 C2 C3 C4 Tot C5 Tot 24 hr Recap Run in hole with 32 stands of drill pi Start drillin collar. Continue. e. Accident) dro dart. POOH. RIH with 8.5" drillin assembl . Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Alr : 6 Customer: FEX Report No t""°L~ - . Well: Amaguq #2 Date: 21/02/2006 Sparry drilling S®rvicBS Area: North Slope .Depth 2133 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Nipple up BOP Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 0 ft/hr ( 0 ft/hr C°3 0 ) Gas" 0 units 0 unit: ( 0 units @ 0 ) Sample Quality ~ Good x0 Fair ~ Poor Pump and Flow Data Pumps 0 spm Flow rate 0 gpm Pump Capacity 0 gps Pump Liner & Strk 6X9 in. Pump Pres o psi Mud Wt In 9.90 ppg Visc 84 secs API filt 9.2 ml HTHP ml Mud Wt at Max Gas 9.9 ppg Mud Wt Out 9.90 ppg PV 20 cP YP 34 Ibs/100ft2 Gels 13 \ 22 \ 22 MBT 10 pH 8.8 Sd 1.8 Bit No.: 2 Type: HGC MXL-1 Bit Size: 8 1/2 Jets: 3 x 16 x x TFA: 1.7700 Wt On Bit: 0.00 RPM: 0 Hrs. On Bit: 0.0 Total Revs on Bit: Footage for Bit Run Trip Depth: 2133 ft Trip Gas: 7 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to to to 24 hr Recap Drilled out rubber dart. Circulated hi-vis swee around to clean casin volume of rubber and metal cuttin s. POOH to cement casin .Circulated 2 casin volumes. Cemented casin Waitin on cement/ ni lin u BOP Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air : 7 Customer: FEX Report No ~ " ~ . Well: Amaguq #2 Date: 22/02/2007 Sp®rry Grilling S®rvicBS Area: North Slope Depth 2133 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Nipple up BOP .lob No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 0 ft/hr ( 0 ft/hr Cam? 0 ) Gas" 0 units 0 unit; ( 0 units @ 0 ) Sample Quality ~ Good x0 Fair ~ Poor Pump and Flow Data Pumps 0 spm Flow rate 0 gpm Pump Capacity 0 gps Pump Liner & Strk 6X9 in. Pump Pres 0 psi Mud Wt In 9.80 ppg Visc 72 secs API filt 7.2 ml HTHP ml Mud Wt at Max Gas 9.8 ppg Mud Wt Out 9.80 ppg PV 15 cP YP 27 Ibs/100ft2 Gels 10 \ 18 \ 20 MBT 8 pH 9.4 Sd Bit No.: Type: Bit Size: Jets: x x x TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %COaI %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to _ to to I 24 hr Recap Ni le down, Start to ni le u BOPs, Built 150 bbls of new mud in pre aration for drillin . Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No.: 8 ~~.1L.1~ 1 Well: Amaguq #2 Date: 23/02/2007 Sp®rry Grilling S®r..ic®s Area: North Slope Depth 2133 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: RIH w/ DP Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 ft/hr 0 ft/hr ( 0 ft/hr C°3 0 ) Gases 0 units 0 unit; ( 0 units C~ 0 ) Sample Quality ~ Good Q Fair ~ Poor Pump and Flow Data Pumps 0 spm Flow rate 0 gpm Pump Capacity 0 gps Pump Liner & Strk 6x9 in. Pump Pres 0 psi Mud Wt In 9.50 ppg Visc 54 secs API filt 6.4 ml HTHP ml Mud Wt at Max Gas ppg Mud Wt Out 9.50 ppg PV 21 cP YP 27 Ibs/100ft2 Gels 10 \ 20 \ 20 MBT 8 pH 9.9 Sd Bit No.: Type: Bit Size: Jets: x x x TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to to to 24 hr Recap Continue to clean out lower i e rams & chan a rubbers; Pressure test H dril 250 si low & 2500 si hi h 10 min each ;Kill line check valve leaked - take a art, clean & retest; Kill line HCR & manifold valves & chokes all tested 250 psi low & 5000 psi high; Remove test plug; Install wear bushing; Flangeup flow nipple & Ketch Kan; Start picking up DP Logging Engineer: Tom Mansfield/Eugene Payne `' 10000 units = 100% Gas In Air Customer: FEX Report No : 9 W ~ ~~ t . Well: Amaguq #2 Date: 24/02/2007 sp®rry 17rilling Services Area: North Slope Depth 2133 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: MU BHA Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Current 24 hr Avg 24 hr Max R.O.P. 0 fUhr 0 ft/hr ( 0 ft/hr C~ 0 ) Gas"' 0 units 0 unit: ( 0 units C~ 0 ) Sample Quality ~ Good Q Fair ~ Poor Pump and Flow Data Pumps 0 spm Flow rate 0 gpm Pump Capacity 0 gps Pump Liner & Strk 5.5X9 in. Pump Pres 0 psi Mud Wt In 9.50 ppg Visc 53 secs API filt 6.4 ml HTHP ml Mud Wt at Max Gas ppg Mud Wt Out 9.50 ppg PV 21 cP YP 28 Ibs/100ft2 Gels 10 \ 20 \ 22 MBT 7 pH 9.2 Sd Bit No.: 3 Type: HCM5062 Bit Size: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 40 % %Coal %Sst 20 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to to to 24 hr Recap Continue P/U DP & rack back; Circulate hole to test cs ; Test cs to 2500 si; Rack back DP & HWDP. Break down BHA; Start P/U BHA #3; Pulse test MWD; Continue handlin BHA #3 Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No.: 10 t ~ Well: Amaguq #2 Date: 25/02/2007 Sp®rry Drilling s,~r..ic®s Area: North Slope Midnight Depth 2250 udlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 117 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Jaque Ledbetter and Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max R.O.P. 11.1 ft/hr 11.1 ft/hr ( 106 ft/hr C~ 2252 ) Gas' 20 units 11 unit; ( 22 units ~ 2253 ) Sample Quality ~ Good Q Fair ~ Poor Pump and Flow Data Pumps 94/92 spm Flow rate 490 gpm Pump Capacity 8.17 gps Pump Liner & Strk 5.5X9 in. Pump Pres 1403 psi Mud Wt In 9.50 ppg Visc 54 secs API filt 7.5 ml HTHP ml Mud Wt at Max Gas 9.5 ppg Mud Wt Out 9.50 ppg PV 21 cP YP 27 Ibs/100ft2 Gels 9 \ 14 \ 15 MBT 8 pH 9.7 Sd Bit No.: 3 Type: HCM5062 Bit Size: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 Wt On Bit: 12.00 RPM: 150 Hrs. On Bit: 10.5 Total Revs on Bit: Footage for Bit Run 117 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 50 % %COaI %Sst 10 %Sh 40 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to to to 24 hr Recap Makeu S err tools; Surface test; Safet mt riot to handlin source tools; Make u Smart Iron; Tri in hole; Ta cmt C«3 1944'; Drill out cmt & shoe; Drill ahead to 2155'; Sto & circ hole clean; Perform LOT - no break down C°3 16 ppg EMD; Continue to drill ahead in 8 1/2-in hole to 2250' Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air : 11 Customer: FEX Report No _ _ ~~ ~ ;~~ - - ' " . Well: Amaguq #2 Date: 26/02/2007 Sperry Drilling S®rvices Area: North Slope Midnight Depth 2999 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 749 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Jaque Ledbetter and Zenon Kotelko Midst-3 AM 24 hr Avg 24 hr Max R.O.P. 35.8 ft/hr 31.9 fUhr ( 184 ft/hr C~ 2395 ) Gas` 38 units 28 unit; ( 78 units C°3 2841 ) Sample Quality x^ Good ~ Fair ~ Poor Pump and Flow Data Pumps 93/94 spm Flow rate 492 gpm Pump Capacity 8.2 gps Pump Liner & Strk 5.5X9 in. Pump Pres 1631 psi Mud Wt In 9.40 ppg Visc 45 secs API Tilt 6.4 ml HTHP ml Mud Wt at Max Gas 9.5 ppg Mud Wt Out 9.40 ppg PV 13 cP YP 23 Ibs/100ft2 Gels 9 \ 18 \ 20 MBT 8 pH 9.7 Sd Bit No.: 3 Type: HCM5062 Bit Size: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 Wt On Bit: 11.00 RPM: 150 Hrs. On Bit: 34.0 Total Revs on Bit: Footage for Bit Run 866 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 10 % %Sltst 20 %Sst 10 %Sh 60 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 2835 to 2845 78 36 6554 273 64 64 2 to to to to to 24 hr Recap Continue to drill ahead in 8 1/2-in hole from 2250' to 2999' Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No.: 12 _ '~ Well: Amaguq #2 Date: 27/02/2007 ^aparry Grilling S®rvices Area: North Slope Midnight Depth 2250 udlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 117 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Jaque Ledbetter and Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max R.O.P. 41.4 fUhr 11.1 ft/hr ( 95 ft/hr (~ 3327 ) Gas' 33 units 37 unit: ( 83 units C°? 3536 ) Sample Quality x^ Good ~ Fair ~ Poor Pump and Flow Data Pumps 102/104 spm Flow rate 544 gpm Pump Capacity 9.1 gps Pump Liner & Strk 5.5X9 in. Pump Pres 2158 psi Mud Wt In 9,40 ppg Visc 45 secs API filt 4.2 ml HTHP ml Mud Wt at Max Gas 9.4 ppg Mud Wt Out 9,40 ppg PV 12 cP YP 21 Ibs/100ft2 Gels 8 \ 11 \ 15 MBT 6.5 pH 10.4 Sd Bit No.: 3 Type: HCM5062 Bit Size: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 Wt On Bit: 18.00 RPM: 155 Hrs. On Bit: 10.5 Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst 10 % %Sltst 20 %Sst 10 Sh 60 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 3534 to 3537 83 48 6251 167 77 54 0 to to to to to 24 hr Recap Makeu S err tools; Surface test; Safet mt prior to handlin source tools; Make u Smart Iron; Tri in hole; Ta cmt C~ 1944'; Drill out cmt & shoe; Drill ahead to 2155'; Sto & circ hole clean; Perform LOT - no break down Q 16 ppg EMD; Continue to drill ahead in 8 1/2-in hole to 2250' Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX : 13 Report No - ~ ~ - ` _ . Well: Amaguq #2 . Date: 28/02/2007 Sp®rry drilling Services Area: North Slope Midnight Depth 4308 Mudlogger's Morning Report Lease: Rig: Job No.: Exploration Footage Last 24 hrs: 748 Arctic Wolf Rig Activity: Drilling AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max R.O.P. 41.4 ft/hr 32.5 ft/hr ( 147 ft/hr C~ 4246 ) Gas' 33 units 37 unit: ( 96 units C~ 4381 ) Sample Quality Q Good ~ Fair ~ Poor Pump and Flow Data Pumps 103/103 spm Flow rate 544 gpm Pump Capacity 9.1 gps Pump Liner & Strk 5.5X9 in. Pump Pres 2346 psi Mud Wt In 9.70 ppg Visc 42 secs API filt 6.4 ml HTHP ml Mud Wt at Max Gas 9.4 ppg Mud Wt Out 9.70 ppg PV 15 cP YP 21 Ibs/100ft2 Gels 7 \ 25 \ 26 MBT 8.0 pH 9.7 Sd 1.0 Bit No.: 3 Type: HCM5062 Bit Size: Wt On Bit: 15-20 RPM: 155 Hrs. On Bit: 8 1/2 Jets: 6 x 15 x x TFA: .1.0400 76.5 Total Revs on Bit: Footage for Bit Run 2175 Trip Depth: ft Trip Gas: Short Trip Depth ft Short Trip Gas: Tight Spots: to to Mud Cut: ppg Trip CI: ppm Mud Cut: _ppg Short Trip CI: .ppm to Feet of Fill on Bottom: ft Current Lithology: Clyst 10 % %Sltst 20 %Sst 10 %Sh 60 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ft units ft units ft units ppg ft units ppg ppg ft units ppg ppg ft units ppg ppg ft units ppg Depth Gas in units Max Background 3621 to 4370 40 4370 to 4393 96 63 4393 to 4455 51 to to to GAS PEAKS Chromatograph in ppm C1 C2 C3 C4 Tot C5 Tot 3491 65 28 2 0 5795 77 33 1 0 4448 77 35 1 0 24 hr Recap Drill 8-1/2" hole from 3560' to 4308' Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No.: 14 Well: Amaguq #2 Date: 01/03/2007 £3p®rry drilling s®r..ic®s Area: North Slope Midnight Depth 4656 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 348 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midst-3 AM 24 hr Avg 24 hr Max R.O.P. 41.1 ft/hr 43.5 ft/hr ( 95 ft/hr C~ 4585 ) Gas" 68 units 51 unit: ( 188 units C°3 4696 ) Sample Quality x^ Good ~ Fair ~ Poor Pump and Flow Data Pumps 106/107 spm Flow rate 563 gpm Pump Capacity 9.4 gps Pump Liner & Strk 5.5X9 in. Pump Pres 2657 psi Mud Wt In 9.90 ppg Visc 45 secs API filt 7.0 ml HTHP ml Mud Wt at Max Gas 9.8 ppg Mud Wt Out 9.90 ppg PV 22 cP YP 9 Ibs/100ft2 Gels 6 \ 25 \ 29 MBT 8.0 pH 9.3 Sd 0.3 Bit No.: 3 Type: HCM5062 Bit Size: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 Wt On Bit: 15-20 RPM: 155 Hrs. On Bit: 84.5 Total Revs on Bit: Footage for Bit Run 2523 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 50 %Sst 15 Sh 35 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 4455 to 4685 46 4087 90 42 1 0 4685 to 4705 188 80 8446 144 71 11 0 4705 to 4726 42 3820 89 42 0 0 4726 to 4739 170 104 9982 168 88 19 0 to to 24 hr Recap Drill ahead 8-1/2" hole from 4308' to 4656', short trip at 4605', tight spots with 20K max overpull at 4603', 4520', X341', 4015', 3772', 3440', 3019', 2887', 2719 Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No : 15 `-°~ "` ' - - Well: Amaguq #2 . Date: 02/03/2007 Sperry drilling S®rvices Area: North Slope Midnight Depth 5188 Mudlogger's Morning Report Lease: Rig: Job No.: Exploration Footage Last 24 hrs: Arctic Wolf Rig Activity: AK-AM-4844276 Report For: 532 POOH Zenon Kotelko Midst-3 AM 24 hr Avg 24 hr Max R.O.P. ft/hr 39.4 ft/hr ( 100 ft/hr C~ 4987 ) Gas' units 73 unit; ( 504 units C°3 4836 ) Sample Quality x^ Good ~ Fair ~ Poor Pump and Flow Data Pumps 109/107 spm Flow rate 570 gpm Pump Capacity 9.5 gps Pump Liner & Strk 5.5X9 in. Pump Pres 2958 psi Mud Wt In 10.00 ppg Mud Wt Out 10.00 ppg Visc 48 secs API filt 5.6 ml HTHP ml Mud Wt at Max Gas 9.9 ppg PV 16 cP YP 26 Ibs/100ft2 Gels 8 \ 19 \ 26 MBT 8.5 pH 10.3 Sd 1.8 Bit No.: 3 Type: HCM5062 Bit Size: Wt On Bit: 18.00 RPM: 155 Hrs. On Bit: 8 1/2 Jets: 6 x 15 x x TFA: 1.0400 98.0 Total Revs on Bit: Footage for Bit Run 3055 Trip Depth: 5188 Short Trip Depth Tight Spots: to ft Trip Gas: ft Short Trip Gas: to 0 Mud Cut: ppg Trip CI: ppm Mud Cut: _ppg Short Trip CI: ppm to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 60 %Sst 5 %Sh 35 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ft units ft units ft units ppg ft ppg ft ppg ft ppg ft units ppg units ppg units ppg units ppg Depth 4739 to 4760 4760 to 4787 4787 to 4798 4798 to 4830 4830 to 4845 4845 to 5065 5065 to 5122 5122 to 5188 Gas in units Max Background 136 91 60 46 290 i35 75 46 504 204 138 41 472 226 65 47 GAS PEAKS Chromatograph in ppm C1 C2 C3 C4 Tot C5 Tot 8671 139 74 12 0 4202 95 49 1 0 11706 198 109 24 0 4291 102 52 3 0 17104 429 304 123 24 3473 105 60 8 0 20813 615 434 179 13 3617 154 114 44 0 K BG PK BG PK BG PK BG 24 hr Recap Drill ahead 8-1/2" hole from 4656' to 5188', rotary torque drops to zero, no ROP, circulate, POOH for bit. Logging Engineer: Tom Mansfield/Eugene Payne 10000 units = 100% Gas In Air : 16 Customer: FEX Report No - ' ~ . Well: Amaguq #2 Date: 03/03/2007 Sparry drilling S®rvic~s Area: North Slope Midnight Depth 5188 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: MU BHA #4 Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max R.O.P. ft/hr ft/hr ( ft/hr C~ ) Gas* units unit; ( units C~ ) Sample Quality ~ Good ~ Fair ~ Poor Pump and Flow Data Pumps spm Flow rate gpm Pump Capacity gps Pump Liner & Strk 5.5X9 in. Pump Pres psi Mud Wt In 9.50 ppg Visc 50 secs API filt 5.2 ml HTHP ml Mud Wt at Max Gas ppg Mud Wt Out 9.50 ppg PV 13 cP YP 26 Ibs/100ft2 Gels 6 \ 16 \ 21 MBT 7.2 pH 10.1 Sd 0.0 Bit No.: 4 Type: HCM605 Bit Size: 8 1/2 Jets: 5 x 13 x x TFA: 0.6500 Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 5188 ft Trip Gas: n/a Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 60 %Sst 5 %Sh 35 Connection Gas and Mud Cut ft units ppg ft units ppg ft units .ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot to to to to to to to to 24 hr 9ecap Finish POOH, recover LWD memory data, rack back BHA, pressure test BOP, change bit and pick up BHA. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air : 17 Customer: FEX Report No m ~ ~ . Well: Amaguq #2 Date: 04/03/2007 Sparry Grilling SarvicBS Area: North Slope Midnight Depth 5680 Mudlogger's Morning Report Lease: Exploration Footage Last 24 hrs: 491 Rig: Arctic Wolf Rig Activity: Drilling Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max R.O.P. 62.5 ft/hr 44.6 ft/hr ( 196 ft/hr ~ 5347 ) Gas" 7 units 72 unit; ( 426 units C~ 5368 ) Sample Quality ~ Good ~ Fair ~ Poor Pump and Flow Data Pumps 97/101 spm Flow rate 525 gpm Pump Capacity 8.75 gps Pump Liner & Strk 5.5X9 in. Pump Pres 3105 psi Mud Wt In 9.80 ppg Visc 49 secs API filt 6.2 ml HTHP ml Mud Wt at Max Gas 9.8 ppg Mud Wt Out 9.80 ppg PV 18 cP YP 20 Ibs/100ft2 Gels 10 \ 32 \ 30 MBT pH 9.0 Sd Bit No.: 3 Type: HCM506Z Bit Size: 8 1/2 Jets: 5 x 13 x x TFA: 0.6500 Wt On Bit: 13-15 RPM: 155 Hrs. On Bit: 11.0 Total Revs on Bit: Footage for Bit Run 491 Trip Depth: 5188 ft Trip Gas: 233 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 60 %Sst 5 %Sh 35 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Background C1 C2 C3 C4 Tot C5 Tot 5188 to 5302 53 36 No Chromat readings, due to failure to ignite BG 5302 to 5330 121 76 8343 240 122 31 0 PK 5330 to 5415 426 159 1F263 482 257 79 6 PK 5415 to 5679 198 60 5808 228 120 33 0 BG to M to to to 24 hr Recap Pick up BHA, RIH, ream 60' to bottom, drill ahead to 5680'. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air 1 1 0 Customer: FEX Report No : 18 Well: Amaguq #2 . Date: 05/03/2007 Spar~ry Grilling s®.-..~~~~ Area: North Slope Midnight Depth 6553 Lease: Exploration Footage Last 24 hrs: 873 Rig: Arctic Wolf Rig Activity: Drilling Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 14.4 fUhr 41.6 ft/hr ( 205 fUhr ~ 5874 ) Pumps 98/96 spm Flow rate 510 gpm Gas' 113 units 162 unit: ( 1721 units @ 5981 ) Pump Capacity 8.5 gps Pump Liner & Strk 5.5x9 in. Sample Quality x^ Good ~ Fair ~ Poo r Pump Pres 3388 psi tv1ud Wt In 10.40 ppg Visc as secs API filt 9.0 ml HTHP ml Mud Wt at Max Gas 9.9 ppy Mud Wt Out 10.40 ppg PV 16 cP YP 20 Ibs/100ft2 Gels 15 \ 36 \ 34 MBT 10 pH 8,5 Sd Bit No.: 3 Type: HCM506Z Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: 15.00 RPM: 155 Hrs. On Bit: 32.0 Total Revs on Bit: Footage for Bit Run 1364 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 65 %Sst 20 %Sh 15 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 5679 to 5800 99 75 7253 292 138 37 0 BG 5800 to 5952 192 137 13488 588 243 73 0 BG 5952 to 5960 341 185 19875 912 420 131 1 PK 5960 to 5974 410 171 14719 768 373 116 0 PK 5974 to 5990 1721 249 23894 1070 476 137 10 PK 5990 to 6160 337 118 10835 588 287 95 0 BG 6160 to 6185 350 183 18296 798 291 86 0 PK 6185 to 6210 444 221 21535 1011 392 117 0 a_ PK 6210 to 6383 231 147 13901 760 293 93 0 BG 6383 to 6393 323 177 17643 973 390 133 4 PK 6413 to 6425 333 185 20421 1045 368 117 1 PK 6425 to 6520 529 239 24030 1229 394 _ 120 1 BG 6520 to 6547 1191 425 44231 2292 695 203 13 PK to 24 hr Recap Drill ahead from 5680' to 6553', weight up mud system to 10.5 ppg . Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air : 19 Customer: FEX Report No i _ . Well: Amaguq #2 Date: 06/03/2007 sp®rry Drilling Services Area: North Slope Midnight Depth 6726 Lease: Exploration Footage Last 24 hrs: 173 Rig: Arctic Wolf Rig Activity: Drilling Mudlogger's Morning Report .lob No.: AK-AM-4844276 Report For: Zenon Kotelko Midst-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 23.4 ft/hr 9.9 ft/hr ( 115 ft/hr C~ 6623 ) Pumps 93/90 spm Flow rate 483 gpm Gas' 31 units 56 unit: ( 248 units ~ 6557 ) Pump Capacity 8.05 gps Pump Liner & Strk 5.5X9 in. Sample Quality Q Good ~ Fair ~ Poor Pump Pres 3313 psi Ivtud Wt In 10.60 ppg Visc 55 secs API filt 6.4 ml HTHP ml Mud Wt at Max Gas 10.5 ppy Mud Wt Out 10.60 ppg PV 23 cP YP 23 Ibs/100ft2 Gels 14 \ 42 \ 42 MBT 10 pH 9.5 Sd 0.5 Bit No.: 3 Type: HCM506Z Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: 15-20 RPM: 151 Hrs. On Bit: 49.5 Total Revs on Bit: Footage for Bit Run 1537 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 55 %Sst %Sh 45 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 6547 to 6633 248 98 8460 555 217 80 0 BK 6633 to 6729 233 19 1665 114 46 16 0 BK to to to to to to to to to to to to 24 hr Recap Drill ahead from 6553' to 6726', pump sweeps as needed. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No : 20 .~ Well: Amaguq #2 . Date: 07/03/2007 Sparry Grilling St.rvic®s Area: North Slope Midnight Depth 7400 Lease: Exploration Footage Last 24 hrs: 674 Rig: Arctic Wolf Rig Activity: POOH Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr 33.7 fUhr ( 244 ft/hr C~ 6805 ) Pumps 81/83 spm Flow rate 434 gpm Gas"` units 455 unit; ( 5639 units ~ 6837 ) Pump Capacity 7.23 gps Pump Liner & Strk 5.5X9 in. Sample Quality Q Good ~ Fair ~ Poor Pump Pres 3073 psi fvlud Wt In 10.50 ppg Visc ss secs API Tilt 7.6 ml HTHP ml Mud Wt at Max Gas 10.5 ppy Mud Wt Out 10.50 ppg PV 20 cP YP 30 Ibs/100ft2 Gels 18 \ 40 \ 44 MBT 11 pH 9.0 Sd 0.5 Bit No.: 3 Type: HCM506Z Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: 10 RPM: 151 Hrs. On Bit: 69.5 Total Revs on Bit: Footage for Bit Run 2211 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ ppg Short Trip CI: ppm Tight Spots: to to to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst 90 %Sh 10 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 6729 to 6820 66 40 3083 207 62 12 0 BK 6820 to 6839 5639 2504 416684 21229 5548 1408 306 PK 6839 to 6861 2992 1335 301123 13109 3579 962 127 PK 6861 to 6888 136 81 6817 515 158 45 0 BK 6888 to 6900 813 443 82468 4554 1162 307 7 PK 6900 to 6920 762 383 78558 4302 1130 291 18 PK 6920 to 6940 914 314 93381 5736 1600 432 49 PK 6940 to 7043 144 90 7602 633 _214 67 0 BG 7043 to 7060 379 242 37021 2549 740 214 19 PK 7060 to 7084 853 472 84346 5298 1505 423 71 PK 7084 to 7177 460 97 17041 1420 451 214 20 BG 7177 to 7240 4932 2133 420651 24737 6416 1663 377 PK 7240 to 7383 228 142 10866 1132 422 164 6 BG 7383 to 7400 160 98 14826 690 195 96 4 PK 24 hr Recap Drill ahead from 6726' to 7400'. 10 bbl loss at 7400'. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air : 21 Customer: FEX Re ort No _ p . Well: Amaguq #2 Date: 08/03/2007 Sp®rry drilling Ser..ices Area: North Slope Midnight Depth 7400 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: POOH Mudlo gger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr ft/hr ( ft/hr ~ ) Pumps spm Flow rate gpm Gas' units unit: ( units C~ ) Pump Capacity gps Sample Quality Q Good ~ Fair ~ Poor Pump Liner & Strk 5.5X9 in. Pump Pres psi fvlud Wt In 10.50 ppg Visc 56 secs API filt 5.0 ml HTHP ml Mud Wt at Max Gas 10.5 ppy Mud Wt Out 10.50 ppg PV 28 cP YP 19 Ibs/100ft2 Gels 5 \ 17 \ 21 MBT 9.5 pH 8.7 Sd 0.6 Bit No.: 3 Type: HCM506Z Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: RPM: Hrs. On Bit: 69.5 Total Revs on Bit: Footage for Bit Run 2211 Trip Depth: 2200 ft Trip Gas: 847 Mud Cut: ppg Trip CI`. ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: 6668 6732 6785 6785 to 7400 Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst 90 %Sh 10 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to to to to to to to ~ 24 hr Recap ~ Short trip from 7400' to shoe, RIH to 7400', tight hole at 6668', 6732', and 6785'. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air : 22 Customer: FEX Report No ®1_P ' ......... _..........._ .................................. . Well: Amaguq #2 Date: 09/03/2007 Sperry Grilling Services Area: North Slope Midnight Depth 7400 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Logging Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ff/hr ft/hr ( ft/hr C~ ) Pumps spm Flow rate gpm Gas"' units unit; ( units C~ ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality Q Good ~ Fair ~ Poor Pump Pres psi Ivtud Wt In 10.70 ppg Visc 51 secs API filt 8.0 ml HTHP ml Mud Wt at Max Gas ppg Mud Wt Out 10.70 ppg PV 14 cP YP 15 Ibs/100ft2 Gels 13 \ 37 \ 39 MBT 8.9 pH 8.5 Sd 0.0 Bit No.: Type: Bit Size: Jets: _x _ x _x _TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst 90 %Sh 10 Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to _ _ to to to to to to 24 hr Recap POOH, download MWD data and rack back tools, rig up and run log. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air : 23 Customer: FEX Report No ~ ......... _L.....-....:..,_ ......... .................................... . Well: Amaguq #2 Date: 10/03/2007 Sperry drilling Services Area: North Slope Midnight Depth 7400 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Testing BOP's Mudlo gger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr ft/hr ( ft/hr ~ ) Pumps spm Flow rate gpm Gas' units unit: ( units C~ ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality Q Good ~ Fair ~ Poor Pump Pres psi tvtud Wt In 11.00 ppg Visc 63 secs API filt 3.8 ml HTHP ml Mud Wt at Max Gas ppy Mud Wt Out 11.00 ppg PV 24 cP YP 17 Ibs/100ft2 Gels 6 \ 25 \ 29 MBT 6.0 pH 9.5 Sd 0.0 x _ x _x _TFA: Bit No.: Type: Bit Size: Jets: _ Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst 90 %Sh 10 Connection Gas and Mud Cut ft units ppg ft units ppg ft units .ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to to to to to to to 24 hr Recap Cut wireiine cores with Baker Atlas. POOH and rig down same, test all BOPS. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air ; 24 Customer: FEX Report No . "t i . Well: Amaguq #2 Date: 3/111/2007 Sparry Grilling sg.-vicBS Area: North Slope Midnight Depth 7400 Lease: Exploration Footage Last 24 hrs; 0 Rig: Arctic Wolf Rig Activity; Circulate Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 14.2 ft/hr ff/hr ( 11 ft/hr @ 7402 ) Pumps spm Flow rate gpm Gas" 67 units unit; ( 113 units C~ 7402 ) Pump Capacity gps Pump Liner & Strk 5.5x9 in. Sample Quality ~ Good ~ Fair ~ Poor Pump Pres psi fvlud Wt In 11.15 ppg Visc ss secs API fill 4.1 ml HTHP ml Mud Wt at Max Gas ppg Mud Wt Out 11.15 ppg PV 22 cP YP 14 Ibs/100ft2 Gels 5 \ 20 \ 28 MBT 7.5 pH 9.5 Sd 0.1 Bit No.: 3rr Type: PDC Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 7362 ft Trip Gas: 368 Mud Cut: 11.2 ppg Trip CI: 33000 ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst %Sh Connection Gas and Mud Cut 7362 ft 338 units 11.2 ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to to to to to to to 24 hr Recap Finish testing all ROPE, make up BHA #4, RIH, circulate and condition mud at 7400'. Logging Engineer: Michelen Brinston/Eugene Payne 10000 units = 100% Gas In Air Customer: FEX Report No : 25 i ' Well: Amaguq #2 . Date: 12/03/2007 Sperry drilling S arvic~s Area: North Slope Midnight Depth 8326 Lease: Exploration Footage Last 24 hrs: 926 Rig: Arctic Wolf Rig Activity: Drilling Mudlo gger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. 21 ft/hr 40.2 fUhr ( 178 fUhr ~ 7881 ) Pumps spm Flow rate gpm Gas" 228 units 636 unit: ( 2861 units ~ 8021 ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality Q Good ~ Fair ~ Poor Pump Pres psi N1ud Wt In 11.15 ppg Visc 61 secs API filt 4.0 ml HTHP ml Mud Wt at Max Gas 11.2 ppy Mud Wt Out 11.15 ppg PV 26 cP YP 17 Ibs/100ft2 Gels 7 \ 26 \ 28 MBT 8.0 pH 9.0 Sd 0.2 Bit No.: 3rr Type: PDC Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: 18 RPM: 65 Hrs. On Bit: 23.0 Total Revs on Bit: 136.9 Footage for Bit Run 926 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fiil on Bottom: ft Current Lithology: Clyst % %Sltst %Sst 100 %Sh Connection Gas and Mud Cut 7828 ft 151 units 11.2 ppg ft units ppg ft units ppg 8137 ft 336 units 11.2 ppg ft units ppg ft units ppg 8200 ft 352 units 11.2 ppg ft units ppg ft units ppg 8262 ft 325 units 11.2 ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 7402 to 7480 153 91 13581 815 154 50 0 BG 7480 to 7575 689 451 68758 4797 997 250 33 BG 7575 to 7639 1001 789 97097 7203 1506 243 52 BG 7639 to 7830 999 641 96019 7926 1426 336 50 BG 7830 to 7890 2861 1795 257215 20654 3720 827 181 PK 7890 to 8015 1191 720 116317 9278 1649 468 109 BG 8015 to 8032 2862 1445 264310 18303 3503 872 188 PK 8032 to 8290 843_ 465 82802 5827 1126 330 62 BG to to to to _ to to 24 hr Recap Drill ahead to casing point. Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air : 26 Customer: FEX Report No ® , .i ~ , ` ...........................................:.....:............................:............................ . Well: Amaguq #2 Date: 13/03/2007 Sperry Drilling Sarvic®s Area: North Slope Midnight Depth 8433 Lease: Exploration Footage Last 24 hrs: 107 Rig: Arctic Wolf Rig Activity: POOH Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko Midst-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr 21.4 ft/hr ( 145 ft/hr ~ 8393 ) Pumps spm Flow rate gpm Gas' units 796 unit: ( 7768 units C~ 8024 ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality x^ Good ~ Fair ~ Poor Pump Pres psi Mud Wt In 11.20 ppg Visc 65 secs API fill 4.2 ml HTHP ml Mud Wt at Max Gas 11.2 ppy Mud Wt Out 11.20 ppg PV 23 cP YP 17 Ibs/100ft2 Gels 6 \ 27 \ 30 MBT 7.0 pH 9.2 Sd 0.1 Bit No.: 3rr Type: PDC Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: 8 RPM: 65 Hrs. On Bit: 28.0 Total Revs on Bit: 190.9 Footage for Bit Run 1033 Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth 8415 ft Short Trip Gas: 5972 Mud Cut: _ppg Short Trip CI: ppm Tight Spots: 7063 6968 to Feet of Fill on Bottom: ft Current Lithology: Clyst % 5 %Sltst 5 %Sst 90 %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 8290 to 8360 377 273 25579 1640 377 148 24 BG 8360 to 8389 732 500 79958 2675 475 165 37 PK 8389 to 8422 396 267 25435 1229 256 108 14 BG 8422 to 8433 7768 4663 522266 22233 2359 299 52 PK to to to to to to to to _ to to 24 hr Recap s Drill ahead to 8433' (casing point), circulate bottoms up, short trip, circulate, POOH. Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air f : 27 Customer: FEX Report No . Well: Amaguq #2 Date: 14/03/2007 Sperry Grilling se.-vooBS Area: North Slope Midnight Depth 8433 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Running casing Mudlogger's Morning Report .lob No.: AK-AM-4844276 Report For: Zenon Kotelko & Jaque Ledbetter Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. fUhr ft/hr ( fUhr C~ ) Pumps spm Flow rate gpm Gas` units unit: ( units C~ ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality ~ Good ~ Fair ~ Poor Pump Pres psi N1ud Wt In 11.20 ppg Visc s5 secs API filt 4.3 ml HTHP ml Mud Wt at Max Gas 11.2 ppg Mud Wt Out 11.20 ppg PV 26 cP YP 18 Ibs/100ft2 Gels 6 \ 26 \ 28 MBT 7.5 pH 9.4 Sd 0.2 Bit No.; Type: Bit Size: Jets: _x _ x _x _TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 1868 ft Trip Gas: 178 Mud Cut: 11.2 ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % 5 %Sltst 5 %Sst 90 %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to _ _ to to to to to to 24 hr Recap POOH, down load MW D tools, ri u for casin ,start runnin casin to 2774.2', tri as reached 178 units. Static losses while runnin first 45 casin 'oints 3.5 bbls 0.6 bbls/hr -from tri sheet Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air : 28 Customer: FEX Report No g ~, ~ t "~iLe t ,~ ~" ............................ . Well: Amaguq #2 Date: 15/03/2007 Sperry drilling sar..icBS Area: North Slope Midnight Depth 8433 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: Running casing Mudlo gger's Morning Report Job No.: AK-AM-4844276 Report For: Zenon Kotelko & Jaque Ledbetter Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. fUhr ft/hr ( fUhr C~ ) Pumps spm Flow rate gpm Gas' units unit: ( units ~ ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality ~ Good ~ Fair ~ Poor Pump Pres psi iv1ud Wt In 11.25 ppg Visc 72 secs API filt 4.2 ml HTHP ml Mud Wt at Max Gas 7.8 ppg Mud Wt Out 11.25 ppg PV 22 cP YP 18 Ibs/100ft2 Gels 8 \ 25 \ 32 MBT 7.5 pH 9.0 Sd Bit No.: Type: Bit Size: Jets: _ x _ x _ x _ TFA: Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 8355 ft Trip Gas: 9980 Mud Cut: 7.8 ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % 5 %Sltst 5 %Sst 90 %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Mud Cut C1 C2 C3 C4 Tot C5 Tot time 19:49 1840 10.5 193438 8344 1405 302 2 tri time 21:34 9980 7.8 580802 51669 9847 2628 496 tri time 22:40 7858 10.0 536108 22835 2781 526 72 trip to to to to to to to to to to to ~ 24 hr Recap Continue running casing to 8369', trip gas reached 9980 units. ~ losses to this oint 271.4bbls with loss rate ran in from 10bbls/hr to 151 bbls/hr. Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air : 29 Customer: FEX Report No It ~ - . Well: Amaguq #2 Date: 16/03/2007 Sperry Grilling S~rvic®s Area: North Slope Midnight Depth 8433 Lease: Exploration Footage Last 24 hrs: 0 Rig; Arctic Wolf Rig Activity: wait on cement Mudlogger's Morning Report Job No.; AK-AM-4844276 Report For: Zenon Kotelko Midnt-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr fUhr ( fUhr C~ ) Pumps spm Flow rate gpm Gas* units unit: ( units C~ ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality xQ Good ~ Fair ~ Poor Pump Pres psi N1ud Wt In 11.10 ppg Visc 67 secs API filt 4.4 ml HTHP ml Mud Wt at Max Gas ppy Mud Wt Out 11.10 ppg PV 21 cP YP 17 Ibs/100ft2 Gels 7 \ 28 \ 31 MBT 8.5 pH 9.0 Sd 0.2 Bit No.: 3rr Type: PDC Bit Size: 8 1/2 Jets: 5 x 13 x _x _TFA: 0.6500 Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: ft Trip Gas: Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to to to to to _ to to 24 hr Recap Continue runnin casin to bottom, loss for the whole 'eb was 385 bbls. Ri u for cement 'ob, um first sta a with 30 bbl lost, um second sta a with 13 bbl lost. Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air Customer: FEX : 30 Re ort No ~ ~ __. _ Well: Amaguq #2 p . Date: 17/03/2007 Sp®rry drilling s®.-vices Area: North Slope Midnight Depth 8433 Lease: Exploration Footage Last 24 hrs: 0 Rig: Arctic Wolf Rig Activity: RIH, press. Test Mudlogger's Morning Report Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Midst-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. ft/hr ft/hr ( fUhr C~ ) Pumps spm Flow rate gpm Gas* units unit: ( units C~ ) Pump Capacity gps Sample Quality ~ Good ~ Fair ~ Poor Pump Liner & Strk 5.5X9 in. Pump Pres psi Iv1ud Wt In 9.70 ppg Visc 57 secs API Tilt 5.9 ml HTHP ml Mud Wt at Max Gas ppy Mud Wt Out 9.70 ppg PV 11 cP YP 14 Ibs/100ft2 Gels 5 \ 22 \ 24 MBT 5.0 pH 10.8 Sd 0.0 Bit No.: 4 Type: HTC STX-1 Bit Size: 6 1/8 Jets: 3 x 14 x _x _TFA: 0.4510 Wt On Bit: RPM: Hrs. On Bit: Total Revs on Bit: Footage for Bit Run Trip Depth: 8426 ft Trip Gas: 7725 Mud Cut: ppg Trip CI: ppm Short Trip Depth ft Short Trip Gas: Mud Cut: _ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst %Sst %Sh Connection Gas and Mud Cut ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot to to to to to to to to __ to to to to to to 24 hr Recap P/U BHA #5; RIH; Drill out stage tool; Lower mud ro erties to 9.4 ;Drill out float collar & ressure test casin to 2500 si for 1/2 hour Trip gas of '725 u at 8426 ft Logging Engineer: Michelen Brinston/Tom Mansfeild 10000 units = 100% Gas In Air u u 1 0 : 31 Customer: FEX Report No L _............ . Well: Amaguq #2 Date: 18/03/2007 Sperry Drilling Services Area: North Slope Midnight Depth 8751 Lease: Exploration Footage Last 24 hrs: 318 Rig: Arctic Wolf Rig Activity: POOH for E-Log Mudlo gger's Morning Report Job No.: AK-AM-4844276 Report For: Jaque Ledbetter Midst-3 AM 24 hr Avg 24 hr Max Pump and Flow Data R.O.P. na ft/hr 40.8 ft/hr ( 62 ft/hr Q 8528 ) Pumps spm Flow rate gpm Gas' na units 270 unit: ( 436 units @ 8657 ) Pump Capacity gps Pump Liner & Strk 5.5X9 in. Sample Quality x^ Good ~ Fair ~ Poor Pump Pres psi tv1ud Wt In 9.40 ppg Visc 51 secs API Tilt 5.0 ml HTHP 13.5 ml Mud Wt at Max Gas 8.8 ppy Mud Wt Out 9.40 ppg PV 15 cP YP 20 Ibs/100ft2 Gels 5 \ 11 \ 16 MBT 4.5 pH 10.8 Sd 0.02 Bit No.: 5 Type: PDC Bit Size: 6 1/8" Jets: 3 x 14 x _x _TFA: 0.4510 Wt On Bit: 23 RPM: 70 Hrs. On Bit: 7.8 Total Revs on Bit: Footage for Bit Run 318 Trip Depth: 8433 ft Trip Gas: 844 Mud Cut: ppg Trip CI: ppm Short Trip Depth 8751 ft Short Trip Gas: 7158 Mud Cut: 8.8 ppg Short Trip CI: ppm Tight Spots: to Feet of Fill on Bottom: ft Current Lithology: Clyst % %Sltst 20 %Sst %Sh 80 Connection Gas and Mud Cut 8464 ft 2251 units ppg 8713 ft 1781 units ppg ft units ppg 8525 ft 1310 units ppg ft units ppg ft units ppg 8590 ft 1140 units ppg ft units ppg ft units ppg 8650 ft 4070 units ppg ft units ppg ft units ppg GAS PEAKS Depth Gas in units Chromatograph in ppm Max Average C1 C2 C3 C4 Tot C5 Tot 8433 to 8440 548 382 37190 1257 123 5 2 8495 to 8510 6501 1783 86247 2480 255 10 0 8648 to 8660 1070 399 48965 1352 129 6 0 8740 to 8751 2793 535 27697 1171 126 10 0 to to to to _ to to to to to to 24 hr Recap : Drilled to a Total Depth of 8751 ft. Circulated bottom up; short trip to the casin shoe; circulated bottom u ; tri back to T.D. Logging Engineer: Chuck Stringer /Tom Mansfeild 10000 units = 100% Gas In Air HALLIBURTDN WELL NAME: OPERATOR: CONTRACTOR: Sperry Drilling Services BIT RECORD Amaguq #2 LOCATION FEX AREA: Doyon -Arctic Wolt STATE: North Slope Barrow Alaska BHA # Bit # Bit Type Bit Size Depth IN Depth OUT Footage Bit Hours TFA AVG ROP WOB RPM PUMP PRESS PUMP GPM Bit Grade Remarks 1 1 Hughes MX-1 12.25 83 2133 2050 24.80 0.997 82.7 zs 80 1500 520 T1-B1-IG POOH for casing 2 2 Hughes HCM506Z 8.50 2133 5188 3055 76.70 1.040 39.8 20 120 3000 550 1-1-PN-N-X-O-NO-PR POOH for bit change 3 3 Hughes HCM605 8.50 5188 7400 2212 55.70 0.650 39.7 25 120 3200 510 1-1-NO-A-X-O-NO-LOG POOH for E-Logs and sidewall cores 4 4 Hughes HCM605 - RR3 8.50 7400 8433 1033 21.90 0.650 47.2 20 100 3100 400 1-1-NO-A-X-O-NO-TD TD 8.5" section 5 5 Hughes STX-1 6.13 8433 8750 317 14.80 0.450 21.4 15 80 2000 230 3-3-ET-A-E-O-NO-TD TD 6.125"hole. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1~ HALLIBURTON Casing Record j~ $ePV1~g Water-based Mud Record Company: FEX L.P. Well Amaguq #2 Rig Arctic Wolf Mud Co Baroid Area Barow -Alaska Job No: AK-AM-4844278 Spud Date 09 Feb 07 TD Date: 12-Mar-07 18" CSG 83 ft MD 9 5/8" Csg 2116.37 ft MD 7" Csg 8423 ft MD Date Depth ft - MD Wt ppg Vis sec PV YP Ib/100 Gels Ib/100R` Filt m/30m R800/R30 Cake 3znds Solids % Water °~ Sd °k Pm pH MBT Pf/Mf Chlor ppm(k Hard Ca++ Remarks 14-Feb 80 10.00 52 10 20 11/15/- 5.6 40.0/30.0 1/- 5.6 92.0 7.8 -/0.30 30.0 180 Ri u and finish mixin mud 15-Feb 487 10.00 56 11 28 11/16/20 5.4 50.0/39.0 1/- 6.0 91.0 0.60 8.0 1.7 -/0.26 31.0 160 Drill to 487 ft, POOH and MU 12 1/4" BHA 16-Feb 1400 10.10 53 13 29 14/22/26 6.4 55.0/42.0 1/- 7.6 90.0 2.20 0.70 9.0 1.5 0.10/1.18 30.0 160 RIH, Cont. Drill Surtace Hole 17-Feb 2133 10.40 51 16 25 10/21/28 4.8 57.0/41.0 2/- 7.9 89.2 3.50 0.24 10.0 3.0 0.16/1.10 31.0 80 TD surface hole, POOH to run Casin 18-Feb 2133 10.30 57 21 29 11/21/26 8.2 75.0/50.0 2/- 9.4 88.0 2.50 0.13 8.6 10.0 0.15/1.12 32.0 200 RIH with Casin 19-Feb 2133 9.90 50 15 23 10/19/21 8.5 53.0/38.0 2/- 5.6 92.0 1.00 8.0 5.0 0.17/1.21 29.0 80 Accidentl dro dart, RIH to drill out Dart 20-Feb 2133 10.00 84 20 24 13/22/22 9.2 74.0/74.02 2/- 5.8 91.0 1.75 0.27 8.8 10.0 -/1.87 28.0 120 Drill out dart. Cement casing 21-Feb 2133 9.80 72 15 27 10/18/20 7.2 57.0/42.0 1/- 5.2 91.0 0.54 9.4 7.5 0.35/1.88 35.0 120 Ni le down, ni le u ,test BOP's. 22-Feb 2133 9.50 54 21 27 10/20/20 6.4 69.0/48.0 1/- 4.1 92.0 0.20 9.9 7.5 0.50/1.90 36.0 120 Ni le u and Test BOP 23-Feb 2133 9.50 53 21 28 10/20/22 6.4 70.0/49.0 1/- 6.8 90.0 0.20 9.2 6.8 0.15/1.10 35.0 140 Finish PU i e, MU BHA 24-Feb 2170 9.50 54 13 22 9/14/15 7.6 48.0/35.0 1/- 4.2 91.0 1.10 9.7 7.5 0.32/3.32 41.0 200 Drillin 25-Feb 2900 9.40 45 13 23 9/18/20 6.4 49.0/36.0 1/- 5.5 91.0 0.50 9.7 7.5 0.21/2.91 31.0 140 Drillin 26-Feb 3316 9.40 45 12 21 8/11/15 4.2 45.0/33.0 1/- 3.3 91.0 0.25 10.4 6.5 0.20/1.80 34.0 180 Drillin 27-Feb 4121 9.70 42 15 21 7/25/26 6.4 51.0/36.0 1/- 7.5 88.0 1.00 0.41 9.7 8.0 0.15/0.87 32.0 120 Drillin 28-Feb 4618 9.70 45 22 9 6/25/29 7.0 53.0/31.0 1/- 6.1 88.0 0.25 0.37 9.3 8.0 0.20/1.90 38.0 120 Drill to 4606', Wi er Tri to Casin Shoe, RIH, Drill 01-Mar 5188 10.00 48 16 26 8/19/26 5.6 58.0/42.0 1/- 6.7 88.0 1.75 0.60 10.3 8.5 0.65/2.20 36.0 120 Drill to 5188, POOH for bit Chan e 02-Mar 5188 9.50 50 13 26 6/16/21 5.2 52.0/39.0 1/- 3.8 90.5 0.60 10.1 7.2 0.25/2.20 36.0 120 Test BOP's, RIH 03-Mar 5417 9.80 49 18 20 10/32/30 6.2 56.0/38.0 1/- 6.6 89.5 0.30 9.0 0.18/2.38 31.0 120 Drillin 04-Mar 6318 9.40 46 16 20 15/36/34 9.0 52.0/36.0 2/- 10.4 86.0 8.5 10.0 0.15/2.15 35.0 120 Drilin 05-Mar 6682 10.60 55 23 23 14/42/42 6.4 69.0/46.0 2/- 11.6 85.0 0.50 0.28 9.5 10.0 0.14/2.14 33.0 120 Drillin 06-Mar 7240 10.50 66 20 30 18/40/44 7.6 70.0/50.0 2/- 10.6 84.0 0.50 0.14 9.0 11.0 0.14/2.20 33.0 360 Drill to 7400, POOH to Lo 07-Mar 7400 10.50 56 28 19 5/17/21 5.0 75.0/47.0 1/- 10.7 84.0 0.60 0.10 8.7 9.5 0.20/2.60 32.0 350 POOH to 2200, RIH to 7400 08-Mar 7400 10.70 51 14 15 13/37/39 8.0 43.0/29.0 2/- 12.0 83.0 0.02 8.5 8.9 0.07/2.30 27.0 440 POOH, Log 09-Mar 7400 11.00 63 24 17 6/25/29 3.8 65.0/41.0 2/3 13.6 82.0 0.00 0.40 9.5 6.0 0.38/3.60 33.0 200 Lo in ,Test BOP's 10-Mar 7400 11.15 78 25 19 6/25/28 4.9 69.0/44.0 2/3 13.8 82.0 0.05 0.18 8.5 9.0 0.18/2.75 31.0 180 Test BOP's, RIH, wash to bottom. 11-Mar 8032 11.15 61 26 17 7/26/28 4.0 69.0/43.0 2/3 14.9 82.0 0.20 0.19 9.0 8.0 0.21 /2.80 30.0 100 Drill from 700' to 8324' 12-Mar 8433 11.20 65 23 17 6/27/30 4.2 63.0/40.0 2/3 14.7 82.0 0.10 0.22 9.2 7.0 0.20/2.34 32.0 180 Drill to 8433'. Condition for Casin . 13-Mar 8433 11.20 65 26 18 6/26/28 4.3 70.0/44.0 2/3 14.7 82.0 0.20 0.40 9.4 0.30/2.30 32.0 160 RIH w/ 7" 26# Casin 14-Mar 8433 11.25 72 22 18 8/25/32 4.2 62.0/40.0 2/3 14.7 81.0 0.15 9.0 7.5 0.15/2.10 32.0 200 Run Casin and cement 15-Mar 8433 11.10 67 21 17 7/28/31 4.4 59.0/38.0 2/3 14.9 81.5 0.20 0.50 9.0 8.5 0.26/2.24 29.0 180 ri u and ri down 16-Mar 8433 9.45 50 12 14 6/17/20 7.6 36.0/25.0 2/3 6.7 90.0 0.02 1.00 10.8 5.0 0.25/1.20 29.0 240 Test 7" Casin 17-Mar 8751 9.40 76 24 21 7/9/13 5.8 69.0/45.0 2/3 6.0 91.0 0.01 0.45 9.5 0.21/2.23 25.0 240 POOH w/ 6" BHA 18-Mar 8751 9.60 70 23 26 5/10/13 4.2 72.0/49.0 2/3 6.6 90.0 0.02 0.25 10.5 5.0 0.25/2.00 30.0 400 Run wireline to s t ..... . , i ::.:i:: :•:i!:i!i :! ~ i iii iiii!i,.:l..,.I.l. :::i : Ua :i: ~: !!! ! i:l! t. ~~!. iiil': . : .. i ! . ~ : :. ii!.. !.. 2iiiiiti':ii i :i:i ~!i3 .I!:ei,i;iiii:!:i:i 9n ::.:. :ii9i:.iii.::...siNi:ir,.... !:! iii ~ iili sperry-sun Well Name: Amaguq#2 Depth (MD) 6850 to 6930 ft ~ ! ~! Location: NPRA (TVD) 6849 to 6929 ft .,; '~ DRILLING SERVICES ii, Operator: FEX p ;r Show Re ort No. 1 !~'! Show Report ~~ Report Prepared By: Michelen Brinston/Eugene Payne Date/Time: 06-Mar-07 €!€ iii i '~ Report Delivered To: Zenon Kotelko ~~;i :.: iiii InterpretatlOn: Chromatograph gas in air analysis from gas trap at possum belly. Formation: Sandstone: It - m gy,clr, occ dk gy, v f - f ~~j~ ii: gr, rd - sb rd, mod - w srtd,strg sil cem, occ carb mat, occ v carb, fr -poor por, occ dll yell grn flor no cut, free oil on sample. Vii!; Pixler plots indicates a gas zone. Steep slope of curve indicates a tight zone. Samples indicate no oil with poor to porosity. i II I I ! ~; ::i! . : : . iiii ::: i:; n . i:n : : i!:i i.'e'.i:..i ::1.9i:!:9iiiii : ~, , ~ .: !.. :.. .:::.. :::: !:i.:i: ~ °i° . ... . .. .. .. ..... . : . Hydrocarbon Ratios ~~~' Depth 6837 ft Gas x Units 5639 i Mud Chlorides (1000's) 32 C1 C1 C1 C1 _ _ i --------------------------------- i Flowline Back round $how ~C - g - C2 _ C3 C4 C5 f m m m ~I~ pp PP pP ~; Hydrocarbon Ratios 1000 0 i . - C1 416684 - 4694 = 411990 IP C1/C2 = 19.7 21229 304 20925 I} = - C2 ~ C1/C3 = 75.5 a C3 5548 - 88 = 5460 C1/C4 = 299.2 -- ~i C4 1409 - 32 = 1377 C1/C5 = 1350.8 NPH C5 305 - 0 = 305 . - -------------------------------------------------------------------------------------- Production 100.0 -- --------- ~~ ~ __ - - - Analysis x Gas Oil Water Y Non-Producible Hydrocarbons _ - - - 2 % th 6847 ft G D it 2992 U M d Chl id 1000' 32 ep as n x s u or es ( s) Gas - li--------------------------- --- Fl l B k ---------- ------ d $h ------------------------------------ ~ ow me ac roun ow - - - - pPm PPm PPm ~ __--- _-__ Hydrocarbon Ratios 10.0 - , -- - - l C1 294515 - 4694 = 289821 CvC2 = 22.6 ' __ C2 13109 - 304 = 12805 C1/C3 = 98.8 - - oil .r C3 3022 - 88 = 2934 CvCa = x57.1 - - - ---- ~j C4 666 - 32 = 634 C11C5 = 4391.2 -- - - ;i!! C5 66 - 0 = 66 ----------------- NPH 1 0 i iiii -------------------------------------------------- Production ------------------- . ~!i ii i i~' Analysis x Vas OII Water Non-Producible Hydrocarbons iiii is 3 % ! Hydrocarbon Ratios i ~!~ iii Depth 6912 ft Gas x Units 732 ,!: Mud Chlorides (1000's) 32 C1 - C1 C1 C - - - ~i 1 `' ! _ _ ---------------------- ---9 ------------- ------ ~, Flowline Back round $how ------------------------------------ C2 C3 C4 C !;- 5 ppm ppm ppm x; Hydrocarbon Ratios 1000.0 f~ ~' C1 78558 - 11228 = 67330 C1/C2 = 19.2 _- ~i C2 4302 - 801 = 3501 C1/C3 = 74.8 ~'!, I' C3 1130 - 230 = 900 C1/C4 = 314.6 NPH . i"' ii! C4 291 - 77 = 214 C1/C5 = 3740.6 ~li~ C5 18 - 0 = 18 - - ii'li 'i' !ii` -------------------------------------------------- Production ------------------------------------ 100.0 _ ~ --~- - ------- ~~ ~., Analysis x Gas OII Water Non-Producible Hydrocarbons _ ! - - ~ -- a ''~ 4 % i Depth 6932 ft Gas x Units 787 Mud Chlorides (1000's) 32 Gas - !! ! .! '! ---------Flowline ----Background--------$how -- -!. .. ------------------------------------ _-~ --~ ___ ~ ~: ~ '" Ppm pPm PPm ~i _ __ _ ; ~!. ~: Hydrocarbon Ratios 10.0 - ---- ~~ C1 93381 - 11228 = 82153 C1/C2 = 16.6 --- - - - iil' I'l 'ii C2 5736 - 801 = 4935 i CvC3 = 59.9 Oil l ii ' C3 1600 - 230 = 1370 i C1/C4 = 231.4 - ni 432 77 i" C4 - = 355 1747.9 C1/C5 = ~ 'il3 3i C5 47 - 0 = 47 NPH ~~ ------------------------------------------------------------------------------ Production 1.0 iiii Analysis nGas ~C) Water ~' Non-Producible Hydrocarbons 7Yf ~ i !i3i iiii' . f':: :y. i I I::. ': ~fi:i'il i iii I!!: !:i i.3 iii:: ! l l I ii. iliiiii il,';ih!y:i li i!~{' i. t.!:e{,. sperry-$un DRILLING SERVICES Show Report N Well Name: Amaguq#2 Depth (MD) 7065 to 7220 ft ,I; Location: NPRA (ND) 7064 to 7219 ft li Operator: FEX Show Report No. 2 Report Prepared By: Michelen Brinston/Eugene Payne Date/Time: 06-Mar-07 Report Delivered To: Zenon Kotelko ~.I Interpretation: Chromatograph gas in air analysis from gas trap at possum belly. Formation: Sandstone: It - m gy,clr, occ dk gy, v f - f gr, rd - sb rd, occ sb ang, mod - w srtd,strg sil cem, occ Garb mat, occ v carb, fr -poor por, brt orng flor, no cut. Pixler plots indicates a gas zone. Steep slope of curve indicates low permeability. Samples indicate no oil with poor to low porosity. ' r' ~ °i° Depth 7065 ft Gas x Units 753 Mud Chlorides (1000's) 35 ---------Flowline ----Background--------$how -------------------------------------- Hydrocarbon Ratios C1 C1 C1 C1 C2 C3 C4 C5 ~; ~~ ppm ppm ppm Hydrocarbon Ratios 1000 0 . C1 75463 - 9362 = 66101 CvC2 = 17.1 - ii C2 4621 757 = 3864 C1/C3 = 65 1 i j - . l C3 1267 - 252 = 1015 C1/C4 = 242.1 I~~ C4 360 - 87 = 273 C1/C5 = 13220.2 NPH __ __ C5 5 - 0 = 5 Production Analysis x Gas OII Water Non-Producible Hydrocarbons 100.0 _ ~ -=--- I! 2 De th 7071 ft G U it 847 M d Chl id 1000' 35 p as ---------------------------9 --- Flowlme Back r x n s u or es ( s) ---------- ----------------------------------------- nd $h Gas ou ow PPm PPm PPm Hydrocarbon Ratios 0.0 __-_- - _ _~__ _ _ - :, ~~' '~~ C1 84346 - 9362 = 74984 C1/C2 = 16.5 C2 5298 - 757 = 4541 C1/C3 = 59.8 C3 1505 252 = 1253 C1/C4 = 222 5 Oil - - . C4 424 87 = 337 C1/C = 530 3 - j! - 5 1 . C5 49 0 = 49 - -- NPH 1 0 ~~I iii ,, Production Analysis x Gas Oil Water Non-Producible Hydrocarbons . ;; 3 °i° Depth 7121 ft Gas x Units 279 Mud Chlorides (1000's) 35 ---------------------------9 __________--- ---------------------------~--------______ Flowline Back round $how C C Hydroca 1 C 2 C rbon Ratio 1 3 s C1 C C4 C II 1 I fir. 5 ppm ppm ppm Hydrocarbon Ratios 1000 0 24703 1 1 . - ~ C1 534 - 9362 = C1/C2 = 11.7 ' C2 2067 - 757 = 1310 C1/C3 = 37.4 C3 662 - 252 = 410 C1/C4 = 122.7 NPH - `" C4 212 - 87 = 125 C1/C5 = 8o7.a ~` C5 19 - 0 = 19 Production 100.0 ~_ ~ ~ _ - Analysis Gas x OII Water Non-Producible Hydrocarbons _ 4 De th 7215 ft Gas x Units 4932 Mud Chlorides (1000's) 35 Gas -- p --------------•-------- ---g ------------- ------------------------------------------ Flowline Back round $how PPm PPm PPm Hydrocarbon Ratios 0.0 - _ - - _ _ _ _ -_ _ _ _ , - : C1 420651 - 27197 = 393454 C1/C2 = 17.4 Oil C2 24737 - 2161 = 22576 C1/C3 = 68.5 C3 6416 678 = 5738 C1/C4 = 271 7 - . C4 1663 215 = 1448 C1/C5 = 10 2 "'` - 1 5. C5 377 21 = 356 ~ . - - I -- ----------------------- ---------------------------------------------- - 1 0 "^ (ii i'roduction Analysis nGas nOil nWater nNOn-Producible Hydrocarbons . ~~e ~' sperry-sun DRILLING SERVICES i'i Show Report k . Well Name: Amaguq#2 Depth (MD) 8424 to 8433 ft Location: NPRA (TVD) 8423 to 8432 ft Operator: FEX Show Report No. 3 Report Prepared By: Michelen Brinston/Tom Mansfield Date/Time: 12-Mar-07 Report Delivered To: Zenon Kotelko , . ~i. Interpretation: Chromatograph gas in air analysis from gas trap at possum belly. Formation: 95% Shale - dk gry-blk, fis, v carb, slty- ~~ sli sdy, micr mica, sme v fnly dissem micr pyr, talc frac fill, frm. 5% Sandstone - clr-v It brn, of gr, occ f gr, sb ang, mod srtd, pred uncons. Although very minor amounts of Sandstone were present in the sample, the appearance of calcite fracture filling raises the possibility that !'~ porosity for this gas show may be due to fractures rather than intergranular porosity. Gas ratios indicate Gas. ~ °i° Depth 8427 ft Gas x Units 7259 Mud Chlorides (1000's) 30 Flowline Background dhow Hydrocarbon Ratios C1 C1 C1 C1 C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000 0 C1 517752 - 16790 = 500962 CvCZ = 2a 5 . _ - - . C2 21430 1015 = 20415 C1/C3 = 235 4 - . - C3 2359 - 231 = 2128 C1/C4 = 1782.8 ~~ C4 387 - 106 = 281 C1/C5 = 9822.8 NPH ___ ' C5 61 - 10 = 51 _ Production 100.0 --- ~~--- ~~~' ----------------- il Anal sis x G Oil W r N n-Pr ibl H dr rb n t d y y as a e o o uc e oca o s > .. 2 % _ ~' D th 8428 ft G it 7128 M d Chl id 1000' 30 U -- ep as -------------------------------- Fl li B k x n u or s) s es ( ------------------------------------------------------ d Sh Gas - ow ne ac groun ow PPm PPm PPm Hydrocarbon Ratios 10.0 - __-_- - ~ _'__ _ ------- __ C1 522266 - 16790 = 505476 CvC2 = 25.3 - _ C2 21020 - 1015 = 20005 C1JC3 = 254.5 - - li~ 2217 2 9 Oil _ _ _ _ C3 - 31 = 1 86 C1/C4 = 1907.5 ,!, 71 - ~` l C4 3 - 106 = 265 C1/C5 = 9190.5 `! C5 65 - 10 = 55 - -------------------------------------------------------- NPH 1 0 --~-- -- u. ,~ I': Production i. Analysis x Gas Oil Water Non-Producible Hydrocarbons I . I ,! ° ! 3 /° ~:: - Depth 8429 ft Gas x Units 6719 Mud Chlorides (1000's) 30 ----------------------- ---9 -------------- ------------------------------------------ Flowline Back round Show Hydrocarbon Ratios C1 C1 C1 C1 - - - - tl C2 C3 C4 C5 i i PPm PPm PPm Hydrocarbon Ratios lii~ 0 I 1000 C1 517478 - 16790 = 500688 C1/C2 = 27.6 . _ -_ ;~ C2 19169 - 1015 = 18154 C1/C3 = 288 9 !~I . , C3 1964 - 231 = 1733 C1/C4 = 2069.0 NPH ~ '~ C4 348 - 106 = 242 C 1 /C5 = 8784.0 C5 67 - 10 = 57 Production 100.0 - _ _ - ~ ~ ~ ~ ---------- Analysis Gas x Oil Water Non-Producible Hydrocarbons _ ;i5 4 % - De th 8430 ft Gas x Units 5554 Mud Chlorides (1000's) 30 Gas p ----------------------- ---9 -------------- ------------------------------------------ Flowline Back round Show PPm PPm PPm Hydrocarbon Ratios 0.0 _ _ - - _ _ _ _ _ _ _ _ . _ _ - - - - - - ' _ _ C1 478175 - 16790 = 461385 CvC2 = 32.a Oil ' C2 15262 - 1015 = 14247 C1/C3 = 335.6 C3 1606 231 = 1375 C1/C4 = 2116 4 ' - . 324 106 218 ~h I i C1/C5 = 9227.7 C4 = l~» C5 60 - 10 = 50 `~------------------------------- ---------------------------------------------- NPH 1 0 l 'ii Production Analysis I~Gas I-IUi; rlwater f~NOn-Producible Hydrocarbons . Halliburton Company Survey Report Company: FEX Date: 4/25/2007 Time: 17:30:21 Page: 1 Field: NPRA (zone 5) Co-ordinate(NE) Reference: Well: Amaguq#2 , True North Site: Amaguq #2 Vertical (TVD) Reference: Amaguq#2: 95.3 Well: Amaguq#2 Section (VS) Reference: Well (O.OON,O.OOE,195.60Azi) Wellpath: Amaguq#2 Survey Calculation Method: Minimum Curvature Db: Oracle Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 18.60 0.00 0.00 18.60 -76.70 0.00 0.00 5997097.30 279459.40 TIE LINE 382.62 0.76 57.97 382.61 287.31 1.28 2.05 5997098.52 279461.48 MWD 445.77 0.64 73.87 445.75 350.45 1.60 2.74 5997098.82 279462.19 MWD 508.92 0.52 85.02 508.90 413.60 1.72 3.36 5997098.92 279462.81 MWD 568.22 0.48 83:94 568.20 472.90 1.77 3.88 5997098.96 279463.33 MWD 631.18 0.47 94.24 631.16 535.86 1.78 4.40 5997098.95 279463.85 MWD 699.00 0.53 107.56 698.97 603.67 1.67 4.98 5997098.82 279464.42 MWD 819.73 0.50 104.90 819.70 724.40 1.36 6.02 5997098.48 279465.45 MWD 881.50 0.53 122.72 881.47 786.17 1.14 6.52 5997098.25 279465.95 MWD 942.21 0.53 109.26 942.17 846.87 0.89 7.02 5997097.99 279466.44 MWD 1001.69 0.45 114.44 1001.65 906.35 0.71 7.49 5997097.79 279466.91 MWD 1064.21 0.53 108.50 1064.17 968.87 0.51 7.99 5997097.58 279467.40 MWD 1192.91 0.59 117.26 1192.86 1097.56 0.02 9.14 5997097.05 279468.54 MWD 1255.55 0.66 122.13 1255.50 1160.20 -0.32 9.74 5997096.69 279469.12 MWD 1319.12 0.70 129.28 1319.07 1223.77 -0.76 10.35 5997096.24 279469.72 MWD 1379.59 0.68 138.66 1379.53 1284.23 -1.26 10.87 5997095.72 279470.23 MWD 1443.09 0.66 136.99 1443.03 1347.73 -1.81 11.37 5997095.15 279470.71 MWD 1504.67 0.63 153:52 1504.60 1409.30 -2.37 11.76 5997094.58 279471.08 MWD 1629.32 0.62 151.29 1629.25 1533.95 -3.58 12.39 5997093.36 279471.68 MWD 1755.17 0.64 166.10 1755.09 1659.79 -4.86 12.89 5997092.06 279472.14 MWD 1881.43 0.57 172.92 1881.34 1786.04 -6.17 13.13 5997090.75 279472.34 MWD 2005.52 0.67 179.50 2005.42 1910.12 -7.50 13.22 5997089.41 279472.39 MWD 2183.36 0.49 182.22 2183.25 2087.95 -9.30 13.19 5997087.61 279472.31 MWD 2369.60 0.62 187.16 2369.49 2274.19 -11.10 13.04 5997085.82 279472.10 MWD 2557.97 0.31 216.90 2557.85 2462.55 -12.52 12.61 5997084.42 279471.63 MWD 2746.20 0.50 209.35 2746.08 2650.78 -13.64 11.90 5997083.31 279470.89 MWD 2930.40 0.93 207.31 2930.26 2834.96 -15.67 10.82 5997081.32 279469.75 MWD 3117.02 1.05 209.71 3116.85 3021.55 -18.50 9.27 5997078.53 279468.12 MWD 3305.43 1.70 213.14 3305.21 3209.91 -22.34 6.89 5997074.77 279465.63 MWD 3491.09 1.83 224.19 3490.78 3395.48 -26.77 3.32 5997070.44 279461.93 MWD Field: NPRA (zone 5) Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 5 Geo Datum: NAD27 (Clarke 1866) Coordiuate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Amaguq#2 Slot Name: Well Position: +N/-S 0.00 ft Northing: 5997097.30 ft Laritude: 70 23 39.888 N +E/-W 0.00 ft Easting : 279459.40 ft Longitude: 1 55 47 40.594 W Position Uncertainty: 0.00 ft Wellpath: Amaguq#2 Drilled From: Well Ref. Point Tie-on Depth: 18.60 ft Current Datum: Amaguq#2: Height 95.30 ft Above System Datum: Mean Sea Level Magnetic Data: 2/11/2007 Declination: 20.32 deg Field Strength: 57377 nT Mag Dip Angle: 80.24 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 18.60 0.00 0.00 195.60 Survey Program for Definitive Wellpath Date: 4/25/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 382.62 8656.28 Amaguq#2 (382.62-8656.28) MWD MWD -Standard Halliburton Company Survey Report Company: - FEX Date: 4/25/2007 Tim e: 17:30:21 Page: 2 Field: NPRA (zone 5) Co-ordinate(NE) Reference: Well: Amaguq#2 , True North Site: Amaguq #2 Vertical (TVD) Reference: Amaguq#2: 95.3 Well: Amaguq#2 Section (VS) Reference: Well (O.OON,O.OOE,195.60Azi) Wellpath: Amaguq#2 Survey Calculation Method: Minimum Curvature Db: OraGe Survey MD Incl Azim TVD Sys TVD N/S E/W MapN MapE Tool ft deg deg ft ft ft ft ft ft 3678.97 1.86 253.84 3678.57 3583.27 -29.77 -1.70 5997067.59 279456.82 MWD 3866.78 1.60 228.81 3866.29 3770.99 -32.35 -6.60 5997065.16 279451.85 MWD 4054.29 1.67 221.81 4053.73 3958.43 -36.11 -10.39 5997061.52 279447.95 MWD 4239.98 0.94 256.93 4239.37 4144.07 -38.47 -13.68 5997059.25 279444.59 MWD 4428.62 0.58 243.32 4427.99 4332.69 -39.25 -16.04 5997058.54 279442.21 MWD 4611.61 0.56 266.14 4610.97 4515.67 -39.72 -17.76 5997058.12 279440.48 MWD 4800.15 0.33 210.26 4799.51 4704.21 -40.25 -18.95 5997057.62 279439.27 MWD 4988.24 0.57 265.98 4987.59 4892.29 -40.79 -20.16 5997057.13 279438.05 MWD 5175.28 0.48 248.53 5174.63 5079.33 -41.14 -21.82 5997056.82 279436.38 MWD 5362.49 0.25 239.17 5361.83 5266.53 -41.64 -22.90 5997056.36 279435.29 MWD 5549.19 0.12 77.94 5548.53 5453.23 -41.80 -23.06 5997056.20 279435.12 MWD 5737.05 0.14 106.59 5736.39 5641.09 -41.83 -22.64 5997056.16 279435.53 MWD 5924.48 0.50 175.21 5923.82 5828.52 -42.71 -22.36 5997055.27 279435.80 MWD 6172.32 0.09 138.62 6171.66 6076.36 -43.93 -22.14 5997054.04 279435.98 MWD 6359.67 0.33 25.28 6359.00 6263.70 -43.56 -21.81 5997054.41 279436.32 MWD 6547.57 0.64 357.30 6546.90 6451.60 -42.02 -21.63 5997055.94 279436.54 MWD 6735.21 0.14 33.34 6734.53 6639.23 -40.78 -21.55 5997057.18 279436.66 MWD 6922.12 1.02 117.10 6921.43 6826.13 -41.35 -19.94 5997056.56 279438.25 MWD 7099.24 0.87 106.72 7098.53 7003.23 -42.45 -17.25 5997055.38 279440.90 MWD 7294.70 0.58 81.27 7293.97 7198.67 -42.73 -14.85 5997055.03 279443.29 MWD 7545.44 0.41 52.96 7544.70 7449.40 -42.00 -12.88 5997055.70 279445.28 MWD 7794.20 0.41 28.91 7793.46 7698.16 -40.68 -11.74 5997056.99 279446.46 MWD 7982.53 0.57 3.28 7981.78 7886.48 -39.16 -11.36 5997058.50 279446.89 MWD 8170.38 0.48 23.14 8169.62 8074.32 -37.50 -11.00 5997060.14 279447.30 MWD 8532.66 0.62 20.24 8531.89 8436.59 -34.26 -9.73 5997063.34 279448.67 MWD 8592.22 0.79 13.16 8591.44 8496.14 -33.56 -9.52 5997064.03 279448.89 MWD 8656.28 0.80 21.02 8655.50 8560.20 -32.71 -9.26 5997064.87 279449.18 MWD 8750.00 0.80 21.02 8749.21 8653.91 -31.49 -8.79 5997066.08 279449.68 PROJECTED to TD i o I 1000 I 2000 I 3000 ~ 4000 I 5000 I 6000 I 7000 I 8000 FEX, L.P. AMAGUQ #2 Days -vs- Depth - -- - Prognosed - Actual I I 6 I 9000 10000 + 0 ~~ ~ # I I } 5 10 15 20 25 30 35 40 Rig Days FEX, LP AMAGUC~ #2 API # 50-279-20017-00 DAT C -J Amaguq #2 "J O1-COVER PAGE 02-TABLE OF CONTENTS ~~ 03-GENERAL INFO >J 04-DAILY SUMMARY - .~ 05-Daily Activity IADC -'•J O6-MORNING REPORTS J 07-BIT RECORD ~~ 08-MUD REPORTS -~J 09-SHOW REPORTS ?~ 10-SURVEY DATA .. ~ 11-DAYS vs DEPTH -'~ Ascii Data '~ INSITE Database ~_.~ ~~ -~~ EMFs ~~ Insite Plot DeF --'._J PDFs Sperry ®rilling Services FEX, LP AMAGU #2 API # 50-279-20017-00 83 ft. 0 8751 ft. FORMATION EVALUATION LOG Sperry Drilling Services FEX, LP AMAG~JC~ #2 API # 50-279-20017-00 ENGI EERING LOG a Sperry ®rilling Services HALLIBURTOIV Sperry Drilling Services END OF WELL REPORT Amaguq #2 NPRA Exploration Directional Drilling & MWD/LWD Services RECEIVED ~~~1Y 0 3 2007 ~,{ ~lasc<a ~~i~ & Gas Cons. Commiasbn ~.d ~0'~ ~ ! ~' /S'b gychorage ~ HALLIB~JRTC~ End of Well Report for FEX L.P. Rig Doyon Arctic Wolf Well : Amaguq #2 Field :Exploration Country :U.S.A. Job Number : AK-MW-00©4844276 Date : 14-Feb-07 API Number : 50-279-20017-00 ~-perr~ T~rillir~c~ ~iervir~e I~ ii n fl HAL~.C-~URTt~N Company: Rig: Well: Field: Lease Name: State: County: Country: API Number: Sperry-Sun Job Number: Job start date: Job end date: North reference: Declination: Dip angle: Total magnetic field: Date of magnetic data: Wellhead coordinates N: Wellhead coordinates E: Vertical section direction Unit Number: MWD Engineers: Company Representatives: Company Geologist: Sperry ~rillr~,g service General Information FEX L.P. Doyon Arctic Wolf Amaguq #2 Exploration NW NPR-A Alaska North Slope U.S.A. 50-279-20017-00 AK-MW-0004844276 14-Feb-07 17-Mar-07 True 20.315 deg 80.242 deg 57377 nT 11 February, 2007 70 deg. 23 min 39.87 sec North 155 deg. 47 min 40.59 sec West 0.00 deg Unit 117 P. Orth, L. Albitre, A. Munro, J. Zimmerman, J. Stephens, R. French, P. Bement, T. Onyekwelu G. Fischer, E. Natte J. Ledbetter, Z. Kotelko Job No.: AK-MW-0004844276 Well No.: Amaguq #2 End of WeN Report Page 3 HALLIBURTON 1 ~p~rry [~ril~ing Service Operational Overview ,Sperry Drilling Services was called out on February 9, 2007 to provide MWD/BHA services for FEX L.P. In NW NPRA, Alaska, well Amaguq #2 with API 50-279-20017-00. MWD Run 100 was a 12'/0' hole utilizing 8" Directional with Dual Gamma Ray, 4 Phase Electromagnetic Phase Resistivity, and Stabilized Litho- ' Density. This run spudded the well, drilling down to 9 5/8"surface casing point at 2133' MD. The casing shoe was set at 2115' MD. MWD Run 200 was a 8'/i' hole utilizing 6.75" Directional, Dual Gamma Ray, 4 Phase Electromagnetic Phase Resistivity, Compensated Thermal Neutron, Stabilized Litho-Density, Pressure White Drilling, and recorded only Bi-Modal Acoustic. This run drilled out of the casing shoe and continued to 5188' M D where a trip was made for the bit. MWD Run 300 was a 8'/2' hole utilizing 6.75" Directional, Dual Gamma Ray, 4 Phase Electromagnetic Phase Resistivity, Compensated Thermal Neutron, Stabilized Litho-Density, Pressure While Drilling, and recorded only Bi-Modal Acoustic. This run continued the intermediate section, drilling to 7400' MD where a trip was made for wireline sidewall R-Cores. MWD Run 400 was a 8 YZ' hole utilizing 6.75" Directional, Dual Gamma Ray, 4 Phase Electromagnetic Phase Resistivity, Compensated Thermal Neutron, Stabilized Litho-Density, Pressure While Drilling, and recorded only Bi-Modal Acoustic. This run continued the intermediate section, drilling to 8433ft. This was section TD. ' MWD Run 500 was a 6-1/8" hole utilizing 6.75" Directional, Dual Gamma Ray and 4 Phase Electromagnetic Phase Resistivity. The section was drilled entirely during this run to a total MD of 8751ft. Additional Wireline logging was also performed. MWD Runs 100-500 represent well Amaguq #2 API #50-279-20017-00. Il fl Ic~b No.: A'rC-MV1/-0004844276 `:Plelt No.: Amaguq #2 End of Wall Report Page 4 r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1-I1~.~..1E3~.JRTC~V Sperry C~ritling ~~rvice Summary of MWD runs Run No. Bit No. Hole Size (in) MWD Service Start Depth (ft) End Depth (ft) Drill/Wipe Distance (ft) Run Start Date Time Run End Date Time 07 05:Q0 b BRT Hrs. 52 00 Oper. Hrs. 54 060 Circ. Hrs. 33.300 Max Temp. (degF) 82.50 Serv. Int. No Trip MWD No Failure Type 1 250 12 PFE 470.00 2133.00 1663.00 16-Feb-07 01:00 - 18-Fe . . 100 . 47 22 145 200 145 130 109 00 127 No No 200 300 400 2 3 4 8.500 8.500 8.500 PFE PFE PFE 2133.00 5188.00 7400.00 5188.00 7400.00 8433.00 3055.00 2212.00 1033.00 24-Feb-07 00:34 03-Mar-07 01:41 10-Mar-07 12:00 02-Mar-07 01: 08-Mar-07 12:00 13-Mar-07 08:00 38 07 06 . 130.32 68.00 65 3 . 131.840 64.990 900 48 . 87.900 40.130 24.950 . 148.50 161.80 80.32 No No No No No No 500 5 6.130 PFE 8433.00 8751.00 318.00 16-Mar-07 03:00 : 16-Mar- . . End of Well Report Page 5 Job No.: AK-MW-0004844276 Well No.: Amaguq #2 i HAL.1_~E3UF~T~7N S-p~:rry C~r~ll~rtt~ ~errr~ic+ Bitrun Summary 1 MWD Run :100 Run Start 16-Feb-07 01:00 BRT Ars :52.00 hr Circ. Hrs :33.30 hr Rig Bit No 1 Run End 18-Feb-07 05:00 Hole Size :12.250 in Oper. Hrs :54.06 hr l t Start Depth 470.00 ft Footage 1663.00 ft Avg RPM 80 rpm Avg ROP :82.00 fph End Depth 2133.00 ft Avg Flow Rate :510.00 gpm Avg WOB :25.0 klb Avg SPP :1350 psig ' i Mud Type :Fresh Water Gel ;P 13 YP :82.00 fph Weight :10.10 ppg Viscosity t :53.00 spgt PV Chlorides :34000.00 ppm Max Temp. :82.50 degF % Solids :3.00 % % Sand :1.50 ' pH :9.00 pH Fluid Loss 6 mptm % Oil :0.00 % O:W :0/100 1 Tool OD :8.00 in Type PFE Min. Inc. :0.45 deg Min. Inc. Depth :1001.69 ft Final Az. :0.00 deg Max Op. Press. :1110 psig Max Inc. :0.76 deg ded % :100 WD R Max Inc. Depth :382.62 ft MWD Real-time % 99 % ecor M Length Dist From Length Dist From (fl) Bit (ft) (ft) Bit (ft) 752.10 TM HOC ' 4" X 3.24" - 15.7# 5-I/4" X 2-13/16" NC 40 (4 FH) 4.00 in OD / 3.24 in [D 30.00 8.00 in OD F 1.92 in ID SN :197545 * TM - SN :83657 ,_ q,42 0.00 722.10 HWDP 4.00 in OD / 2.56 in ID 540.00 , i ' 8" DM Colla 106.95 X-Over Sub 2 58 182.10 g,00 in OD! 1.92 in ID g,g5 8.00 in OD / 2.50 in ID 179.52 SN :128581 * DM Sonde - SN :154729 NMDC 88 in ID OD / 2 0 i 28.99 I ' . n 8.0 ] 50.53 NMDC 8.00 in OD / 2.88 in ID 30.01 120 52 8" SLD Collar 95.17 56 19 . 8 00 in OD! 2.38 in ID . *SLD Insert - SN : 0 ' MWD 65.40 Welded Blade Stabilizer ~ I 55.12 5.73 8.00 in OD / 2.80 in ID 49.39 Collar Pon 22 15 ' 74.38 y 8.13 in OD / 3.25 in ID . 8" MWD G1R/ RES/ PWD 34.17 8.00 in OD Y 1.92 in ID SN :1288291 ' 66.08 57 27 Float Sub 2 23 . 00 in OD / 2.88 in ID 8 * PWD Insrrt - SN : 0 . 31.94 «EWR-P4~nsert-SN:67981 , * DGR Ins¢rt - SN :141029 1 r 583 8 8" SperryDrill Lobe 4/5 - 5.3 stg 30.74 8.00 in OD / 5.00 in ID ~ ' ricone 1.20 1.2 0 12.25 in OD / 3.00 in ID Tight Hole t 6 P Job No.: AK-MW-0004844276 Well No.: Amagt~ #2 age End of Well Report i~ HALLIBURTON Sperry C~rillir~g :~errrice Bitrun Summary MWD Run :200 Run Start 24-Feb-07 00:34 BRT Hrs :145.22 hr Circ. Hrs :109.13 hr Rig Bit No 2 Run End 02-Mar-07 01:47 Hole Size :8.500 in Oper. Hrs :145.20 hr ~ ~ Start Depth 2133.00 ft Footage 3055.00 ft Avg RPM :120 rpm Avg ROP :39.57 fph End Depth 5188.00 ft Avg Flow Rate :550.00 gpm Avg WOB :20.0 klb Avg SPP :3000 psig Mud Type :Polymer Weight :9.70 ppg Viscosity :43.00 spgt PV 15 cP YP :39.57 fph Chlorides :36000.00 ppm Max Temp. :127.00 degF % Solids :6.70 % % Sand :0.13 pH :9.30 pH Fluid Loss 7 mptm % Oil :2.50 % O:W :2.5:88.0 Tool OD :6.75 in Type PF'E Min. Inc. :0.31 deg Min. Inc. Depth :2558.00 ft Final Az. :265.98 deg Max Op. Press. 0 psig Max Inc. :1.86 deg Max Inc. Depth :3677.00 ft MWD Real-time % 99 % MWD Recorded % :100 Length Dist From Length Dist From (ft) Bit (ft) (ft) B it (ft) 783.87 4" X 3.24" - 15.7# 6" X 3" NC 46 (IF) 30.00 4.00 in OD / 3.24 in ID 6-3/4" BAT Collar 6.71 in OD / 4.63 in ID ' 22.42 91.62 753.87 SN :9012890806 4" X 2-9/16"HWDP #29.7 - NC40(FH) 310.26 * BAT Insert 4.00 in OD / 2.56 in ID 443.61 TM HOC 4-3/4" Sledgehammer Jar 22,47 6.76 in OD / 4.88 in ID SN :728188 ~ 1 10.00 0.00 4.00 in OD / 2.00 in ID * TM - SN :83657 421.14 4" X 2-9/16" HWDP #29.7 - NC40(FH) 248.78 6 3/4" PM3 Collar r 4.00 in OD / 2.56 in ID 6.79 in OD / 4.56 in ID 9 21 65.97 SN :129369 X-Over Sub 2 00 172.36 * DM Sonde - SN :124189 6.28 in OD / 2.88 in ID 170.36 NM Flex Collar 31.08 6.68 in OD / 2.88 in ID 6 3/4" ALD CTN Collar 57.16 139 28 6.73 in OD / 4.63 in ID . SN :129309 29.98 NM Flex Collar 30 87 * CTN Insert - SN :228615 43.83 6.75 in OD / 2.88 in ID *ALD Insert - SN :224808 M Welded Blade Stabilizer ~ ~ 5.62 108.41 - 6.75 in OD / 2.81 in ID 102.79 6 3/4" MWD GR/ RES/PWD ' 22.90 6.76 in OD / 4.63 in ID MWD 99.57 SN:129367 , 27.96 14.61 *PWD Insert - SN : 0 * EWR-P4 Insert - SN :157645 Bit Sub w/float cavity 2 22 3.22 * DGR Insert - SN :58725 , 6.95 6.51 in OD / 2.75 in ID DC - Madel HCM5062 t 00 L00 8.50 in OD / 1.81 in ID I Drill to 5188' MD. Stopped drilling. POOH. Job No.: AK-MW-0004844276 Well No.: Amaguq #2 End of Well Report Page 7 I NALI..IBURTG~IV Sperry ~'lrll~ng Service Bitrun Summary 1 MWD Run :300 Run Start 03-Mar-07 01:41 BRT Hrs :130.32 hr Circ. Hrs :87.90 hr Rig Bit No 3 Run End 08-Mar-07 12:00 Hole Size :8.500 in Oper. Hrs :131.84 hr Start Depth 5188.00 ft Footage 2212.00 ft Avg RPM :120 rpm Avg ROP :39.00 fph End Depth 7400.00 ft Avg Flow Rate :510.00 gpm Avg WOB :22.0 klb Avg SPP :3200 psig Mud Type :Polymer Weight :10.30 ppg Viscosity :52.00 spgt PV 18 cP YP :39.00 fph Chlorides :33000.00 ppm Max Temp. :148.50 degF % Solids :9.60 % % Sand :1.00 ' pH 9.00 pH Fluid Loss 6 mptm % Oil :2.50 % O:W :2.5:88 Tool OD :6.75 in Type PFE Min. Inc. :0.09 deg Min. Ine. Depth :6172.00 ft ' Final Az. :81.27 deg Max Op. Press. 0 psig Max Inc. :1.02 deg Max Inc. Depth :6922.00 ft MWD Real-time % 98 % MWD Recorded % :100 Length DistFroml (ft) Bit (ft) 80.121 65.971 60.911 31.181 1 ' Drilled through HRZ zone and decided to POOH for wireline or mud motor. ~ Job No.: AK-MW-0004844276 Well No.: Amaguq #2 End of Well Report Page 8 HALLIBURTON ~~ Slperry ~rllrng 5iervice Bitrun Summary MWD Run :400 Run Start 10-Mar-07 12:00 BRT Hrs :68.00 hr Circ. Hrs :40.13 hr Rig Bit No 4 Run End 13-Mar-07 08:00 Hole Size :8.500 in Oper. Hrs :64.99 hr ~ ~ Start Depth 7400.00 ft Footage 1033.00 ft Avg RPM :100 rpm Avg ROP :92.95 fph End Depth 8433.00 ft Avg Flow Rate :400.00 gpm Avg WOB :20.0 klb Avg SPP :3100 psig Mud Type :Polymer Weight 11.15 ppg Viscosity :60.00 spgt PV 23 cP YP :92.95 fph Chlorides :33000.00 ppm Max Temp. :161.80 degF % Solids :14.70 % % Sand :0.15 pH :9.00 pH Fluid Loss 4 mptm % Oil :2.00 % O:W :2.0:81.0 Tool OD :6.75 in Type PFE Min. Inc. :0.41 deg Min. Inc. Depth :7545.00 ft Final Az. :23.14 deg Maz Op. Press. :5187 psig Max Inc. :0.57 deg Max Inc. Depth :7982.00 ft MWD Real-time % 99 % MWD Recorded % :100 Length Dist From Leng[h Dist From (ft) Bit (ft) (ft) Bit (ft) 809.00 127.92 4" X 3.24" - 15.7# 6" X 3" NC 46 (IF) 30.00 4.00 in OD / 3.24 in ID 6-3/4" BAT Collar 779.00 6.71 in OD / 4.63 in ID 22 42 SN :9012890806 4" X 2-9/16"HWDP #29.7 - NC40(FH) 310.26 • BAT Insert 4.00 in OD / 2.56 in ID 468.74 4-3/4" Sledgehammer Jar 22,87 TM HOC 105.50 4.00 in OD / 2.00 in ID 6.76 in OD / 4.88 in ID 10.00 SN :728188 446.27 4" X 2-9/16" HWDP #29.7 - NC40(FH) 248 78 ' 4.00 in OD / 2.56 in ID i 6 3/4" PM3 Collar 91 10 -Over Sub 2.00 197.49 6.79 in OD / 4.56 in ID ' 9.21 . 6.28 in OD / 2.88 in ID SN :129369 195.49 s DM Sonde - SN :124189 M Flex Collar 31.08 6.68 in OD / 2.88 in ID 164.41 86.29 M Flex Collar 75 in OD / 2.88 in ID 6 30.87 6 3/4" ALD CTN Collaz . 6.73 in OD / 4.63 in ID 29.73 SN:129309 NM Welded Blade Stabilizer +~ 5 62 ]33.54 • SLD Insert 6.75 in OD / 2.81 in ID 1 127.92 MWD 99.32 56.56 Float Sub 2 58 28.60 6.80 in OD / 2.75 in ID 6 3/4" MWD GR/ RES/ PWD 26.02 6.76 in OD / 4.63 in ID 27.96 7" SperryDrill Lobe 7/8 - 6.0 stg 25.02 SN :129367 7.00 in OD / 4.95 in ID DC-Model HCM605 8.50 in OD / 1.81 in ID +~ - 1.00 1.00 Drill to intermediate TD. POOH for casing. Job No.: AK-MW-0004844276 Well No.: Amaguq #2 End of Well Report Page 9 'HALLIBURTON ^~ Sperry ar~~ll~rrg Servrrce Bitrun Summary MWD Run :500 Run Start 16-Mar-07 03:00 BRT Hrs :3.65 hr Rig Bit No 5 Run End 16-Mar-07 06:38 Hole Size :6.130 in ~ ~ ~ Circ. Hrs :24.95 hr Oper. Hrs :48.90 hr Start Depth 8433.00 ft Footage 318.00 ft Avg RPM 80 rpm Avg ROP :15.00 fph End Depth 8751.00 ft Avg Flow Rate :230.00 gpm Avg WOB :15.0 klb Avg SPP :2000 prig Mud Type :Polymer Weight :9.40 ppg Viscosity :76.00 spgt PV 24 cP YP :15.00 fph Chlorides :25000.00 ppm Maz Temp. :80.32 degF % Solids :6.00 % % Sand :0.01 pH :9.50 pH Fluid Loss 0 mptm % Oil :0.00 % O:W :0:100 Tool OD :4.75 in Type PFE Min. Inc. :0.62 deg Min. Inc. Depth :8532.66 ft Final Az. :21.02 deg Max Op. Press. :2500 psig Max Inc. :0.80 deg Max Inc. Depth :8656.28 ft MWD Real-time % 99 % MWD Recorded % :100 Length Dist From Length Dist From (ft) Bit (ft) (ft) Bit (ft) 734.34 4" X 3.24" - 1 S.7# 6" X 3" NC 46 (IF) 1.00 4.00 in OD / 3.24 in ID 733.34 MWD TM 0.00 4" X 2-9/16" HWDP #29.7 - NC40(FH) 78 248 4.56 in OD / 1.25 in ID ''~ 10.98 4.00 in OD / 2.56 in ID ' SN :130887 ' TM - SN :83657 484.56 6-1 /2" Sledgehammer Jar 34.28 5.25 in OD / 2.50 in ID 450.28 4" X 2-9/16" HWDP #29.7 - NC40(FH) 310.26 4.00 in OD / 2.56 in [D 140 p2 MWD PM3 Collar SS.90 -Over Sub 5.29 in OD / 1.25 in ID . 1'69 4.69 in OD / 1.25 In ID 8.56 Stabilizer J 138.33 S4 S SN :163633 4.77 in OD / 2.13 in ID 1' . • DM Sonde - SN :163633 132.79 NM Flex Collar 31.01 ~ 4.72 in OD / 1.25 in ID `, 101.78 NM Flex Collar 31.15 4.56 in OD / 1.25 in ID t 70.63 MWD FE 36.39 4.72 in OD / 1.25 in ID ' 2S.S9 MWD 45.13 SN :1309578 • Slim P4 Insert - SN :228501 Float Sub 2 17 2S.S0 4.78 in OD/2.13 in iD 23.33 5" EPR SperryDrill Lobe 6/7 - 6.0 stg 22 73 5.00 inOD/3.12inID PDC y ~ 0.60 °~60 6.13 in OD / 1.25 in ID ^5 ~T Drilled to Well TD 8751ft. Good detection. Job No.: AK-MW-0004844276 Well No.: Amaguq #2 End of Well Report Page 10 ~ ~ r ~ Project: NPRA Site: 06 Exploration Well: Amaguq #2 Wellbore: Amagug #2 Design: Amaguq #2 WELL DETAILS: Amaguq#2 Ground Level: 0.00 +N/-S +E/-W Northing Easting Latittude Longitude 0.00 0.00 0.00 0.00 NaN°NaN'NaN NaN°NaN'NaN i-1;~& Imo, i,° E U R T Q 1'1~ Sperry Drilling Serrrioee REFERENCE INFORMATION Co-ordinate (N/E) Reference: Sile O6 E:~kration, True Nonh Slot Vertical (TVD) Reference: WELL @ 40.OOft (Original Well Ekv) Measured Depth Reference: WELL ~ 40.OOtt (Original Well Ekv) CWCWWion Method: Minimum Cun~ature CASING DETAILS No casings on this weRhore. COMPANY DETAII.S: FEX L.P. Calculation Method: Mutimum Curvature Ertor System ISCWSA Scan Method: Trav. Cylinder North Ertor Surface: Elliptical Conic Warning Method: Rules Based C fD N _~ ~_ v m 7' V O O 7 -880 0 680 1360 2040 2720 3400 4080 4760 5440 6120 6800 7480 8160 8840 9520 10200 10680 11560 12240 12920 13600 14280 Halliburton Company Survey Report s 1 Company: FEX llate: 4/25/2007 Time: 17:30:21 Yage: ] Field: NPRA (zone 5) Co- ordinatc(NE) R eference: Well: Amaguq#2, True North Site: Amaguq #2 Ver tical (TVD) Reference: Amaguq#2: 95.3 Well: Amaguq#2 Sec tion (VS) Reference: Well (O.OON,O.OO E,195.60Azi) Wellpath: Amaguq#2 Survey Calculation Method: Minimum Curvature Db: Oracle Survey _ Doll Incl Azim TVD Sys TVD N/S E/W MapN MapF, Tool ft deg deg ft ft ft ft ft ft 18.60 0.00 0.00 18.60 -76.70 0.00 0.00 5997097.30 279459.40 TIE LINE 382.62 0.76 57.97 382.61 287.31 1.28 2.05 5997098.52 279461.48 MWD 445.77 0.64 73.87 445.75 350.45 1.60 2.74 5997098.82 279462.19 MWD 508.92 0.52 85.02 508.90 413.60 1.72 3.36 5997098.92 279462.81 MWD 568.22 0.48 83.94 "568.20 472.90 1.77 3.88 5997098.96 279463.33 MWD 631.18 0.47 94.24 631.16 535.86 1.78 4.40 5997098.95 279463.85 MWD 699.00 0.53 107.56 698.97 603.67 1.67 4.98 5997098.82 279464.42 MWD 819.73 0.50 104.90 819.70 724.40 1.36 6.02 5997098.48 279465.45 MWD 881.50 0.53 122.72 881.47 786.17 1.14 6.52 5997098.25 279465.95 MWD 942.21 0.53 109.26 942.17 846.87 0.89 7.02 5997097.99 279466.44 MWD 1001.69 0.45 114.44 1001.65 906.35 0.71 7.49 5997097.79 279466.91 MWD 1064.21 0.53 108.50 1064.17 968.87 0.51 7.99 5997097.58 279467.40 MWD 1192.91 0.59 117.26 1192.86 1097.56 0.02 9.14 5997097.05 279468.54 MWD 1255.55 0.66 122.13 1255.50 1160.20 -0.32 9.74 5997096.69 279469.12 MWD 1319.12 0.70 129.28 1319.07 1223.77 -0.76 10.35 5997096.24 279469.72 MWD 1379.59 0.68 138.66 1379.53 1284.23 -1.26 10.87 5997095.72 279470.23 MWD 1443.09 0.66 136.99 1443.03 1347.73 -1.81 11.37 5997095.15 279470.71 MWD 1504.67 0.63 153.52 1504.60 1409.30 -2.37 11.76 5997094.58 279471.08 MWD 1629.32 0.62 151.29 1629.25 1533.95 -3.58 12.39 5997093.36 279471.68 MWD 1755.17 0.64 166.10 1755.09 1659.79 -4.86 12.89 5997092.06 279472.14 MWD 1881.43 0.57 172.92 1881.34 1786.04 -6.17 13.13 5997090.75 279472.34 MWD 2005.52 0.67 179.50 2005.42 1910.12 -7.50 13.22 5997089.41 279472.39 MWD 2183.36 0.49 182.22 2183.25 2087.95 -9.30 13.19 5997087.61 279472.31 MWD 2369.60 0.62 187.16 2369.49 2274.19 -11.10 13.04 5997085.82 279472.10 MWD 2557.97 0.31 216.90 2557.85 2462.55 -12.52 12.61 5997084.42 279471.63 MWD 2746.20 0.50 209.35 2746.08 2650.78 -13.64 11.90 5997083.31 279470.89 MWD 2930.40 0.93 207.31 2930.26 2834.96 -15.67 10.82 5997081.32 279469.75 MWD 3117.02 1.05 209.71 3116.85 3021.55 -18.50 9.27 5997078.53 279468.12 MWD 3305.43 1.70 213.14 3305.21 3209.91 -22.34 6.89 5997074.77 279465.63 MWD 3491.09 1.83 224.19 3490.78 3395.48 -26.77 3.32 5997070.44 279461.93 MWD Field: NPRA (zone 5) Map System:US State Plane Coordinate System 1927 Map Zone: Alaska, Zone 5 Geo Datum: NAD27 (Clarke 1866) Coordinate System: Well Centre Sys Datum: Mean Sea Level Geomagnetic Model: bggm2006 Well: Amaguq#2 Slot Name: Well Position: +N/-S 0.00 ft Northing: 5997097.30 ft Latitude: 70 23 39.888 N +E/-W 0.00 ft Easting : 279459.40 ft Longitude: 1 55 47 40.594 W Position Uncertainty: 0.00 ft Weltpath: Amaguq#2 Drilled From: Well Ref. Point Tie-on Depth: 18.60 ft Current Datum: Amaguq#2: Height 95.30 ft Above System Datum: Mean Sea Level Magnetic Data: 2/11/2007 Declination: 20.32 deg Field Strength: 57377 nT Mag Dip Angle: 80.24 deg Vertical Section: Depth From (TVD) +N/-S +E/-W Direction ft ft ft deg 18.60 0.00 0.00 195.60 Survey Program for Definitive Wellpath Date: 4/25/2007 Validated: No Version: 1 Actual From To Survey Toolcode Tool Name ft ft 382.62 8656.28 Amaguq#2 (382.62-8656.28) MWD MWD -Standard i~ ~' 1 I_~ 0 C ~7 Halliburton Company Survey Report Company: FEX llate: 4/25/2007 Time: 17:30:21 Page: 2 Field: NPRA (zone 5) Co-or dinate (NE) R eference: Well: Amaguq#2 , True North Sitr. Amaguq #2 Vertical (TV D) Reference: Amaguq#2: 95.3 Well: Amaguq#2 Section (VS) Reference: Well (O.OON,OAO E,195.60Azi) Wellpath: Amaguq#2 Snrvey Calc ulation ATethod: Minimum Curvature Db: Oracle Sun~ey A1D I ncl Azim TVD Sys TV D N/5 E/W NIapN ~7apE Tool ft deg deg ft ft ft ft ft ft 3678.97 1.86 253. 84 3678. 57 3583. 27 -29.77 -1. 70 5997067.59 279456.82 MWD 3866.78 1.60 228. 81 3866. 29 3770. 99 -32.35 -6. 60 5997065.16 279451.85 MWD 4054.29 1.67 221. 81 4053. 73 3958. 43 -36.11 -10. 39 5997061.52 279447.95 MWD 4239.98 0.94 256. 93 4239. 37 4144. 07 -38.47 -13. 68 5997059.25 279444.59 ' MWD 4428.62 0.58 243. 32 4427. 99 4332. 69 -39.25 -16. 04 5997058.54 279442.21 MWD 4611.61 0.56 266. 14 4610 .97 4515. 67 -39.72 -17. 76 5997058.12 279440.48 MWD 4800.15 0.33 210. 26 4799 .51 4704. 21 -40.25 -18. 95 5997057.62 279439.27 MWD 4988.24 0.57 265. 98 4987 .59 4892. 29 -40.79 -20. 16 5997057.13 279438.05 MWD 5175.28 0.48 248. 53 5174 .63 5079 .33 -41.14 -21 .82 5997056.82 279436.38 MWD 5362.49 0.25 239. 17 5361 .83 5266 .53 -41.64 -22 .90 5997056.36 279435.29 MWD 5549.19 0.12 77. 94 5548 .53 5453. 23 -41.80 -23 .06 5997056.20 279435.12 MWD 5737.05 0.14 106. 59 5736 .39 5641 .09 -41.83 -22 .64 5997056.16 279435.53 MWD 5924.48 0.50 175. 21 5923 .82 5828 .52 -42.71 -22 .36 5997055.27 279435.80 MWD 6172.32 0.09 138. 62 6171 .66 6076 .36 -43.93 -22 .14 5997054.04 279435.98 MWD 6359.67 0.33 25. 28 6359 .00 6263 .70 -43.56 -21 .81 5997054.41 279436.32 MWD 6547.57 0.64 357 .30 6546 .90 6451 .60 -42.02 -21 .63 5997055.94 279436.54 MWD 6735.21 0.14 33 .34 6734 .53 6639 .23 -40.78 -21 .55 5997057.18 279436.66 MWD 6922.12 1.02 117 .10 6921 .43 6826 .13 -41.35 -19 .94 5997056.56 279438.25 MWD 7099.24 0.87 106 .72 7098 .53 7003 .23 -42.45 -17 .25 5997055.38 279440.90 MWD 7294.70 0.58 81 .27 7293 .97 7198 .67 -42.73 -14 .85 5997055.03 279443.29 MWD 7545.44 0.41 52 .96 7544 .70 7449 .40 -42.00 -12 .88 5997055.70 279445.28 MWD 7794.20 0.41 28 .91 7793 .46 7698 .16 -40.68 -11 .74 5997056.99 279446.46 MWD 7982.53 0.57 3 .28 7981 .78 7886 .48 -39.16 -11 .36 5997058.50 279446.89 MWD 8170.38 0.48 23 .14 8169 .62 8074 .32 -37.50 -11 .00 5997060.14 279447.30 MWD 8532.66 0.62 20 .24 8531 .89 8436 .59 -34.26 -9 .73 5997063.34 279448.67 MWD 8592.22 0.79 13 .16 8591 .44 8496 .14 -33.56 -9 .52 5997064.03 279448.89 MWD 8656.28 0.80 21 .02 8655 .50 8560 .20 -32.71 -9 .26 5997064.87 279449.18 MWD 8750.00 0.80 21 .02 8749 .21 8653 .91 -31.49 -8 .79 5997066.08 279449.68 PROJECTED to TD