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207-001
r~~ t Well Histo File Coser Pa e Image P o~ec ry g XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~~ ~ - ~ ~~ Well History File Identifier Organizing (done) RE AN Color Items: Greyscale Items:' ~~ ^ Poor Quality Originals: ^ Other: NOTES: BY: Maria Project Proofing BY: Maria Scanning Preparation QY: Maria Production Scanning /s/ I~IIIIIIIII~I) IIIII lsl ~ + ~ = TOTAL PAGES~_~n (Count does not include cover sheet) 'n/ ,~ /s/ r r ~ Stage 1 Page Count from Scanned File: (count aoes inciude cover sneet) Page Count Matches Number in Scanning Preparation: ~YES NO BY: Maria Date: ~ ~ Q ~ ~S~ ~ 9 Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: Scanning is complete at this point unless rescanning is required. /s/ III IIIIII IIIII (I II ReScanned ~I~ I~I~~IIIII~ ~I~I~ BY: Maria Date: ~S~ Comments about this file: Quality Checked III IIIIII III II~I ~II Date: Date: ~ ~ ~ ^ Two-sided III IIIIII (I III II III ^ Rescan Needed III II'lllll I) IIIIII DIGITAL DATA OVERSIZED (Scannable) ^ Diskettes, No. ^ Maps: ^ Other, No/Type: , p Other Items Scannable by ~ a Large Scanner ~~~ ~~~ ~.Q~ OVERSIZED (Non-Scannable) ^ Logs of various kinds: p Other:: / ~ x30=Q! Date: ~' ~ 10/6/2005 Well History File Cover Page.doc :,~; '~ ~ ,_~" -,~ *` ~,: ~ ~,` ~ ~~ ~° ~~ ~ ~ .. t ~ ~ ~ e - 1~ ~j~~. MICROFILMED 6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc IVlarathon MARiIiHON ®Alaska ProduCtian LLC Marathon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~~ b G~ January 5, 2010 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 ,a~~i ~ 7 2010 ,~i~~i~a iii I~~- Ccl~:~. Commission ,~ ~© r V ~' Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit i~;~v ~~ ~ ~~ ~~~ Well: Grassim Oskolkoff #5 ~'~ Dear Mr. Aubert: Attached for your records is the10-404 Report of Sundry Well Operations for GO-5 well. This report covers the acid stimulation and abandon of the perforations at 9,221'- 9,235' MD along with perforation additions at: ft MD TVD 12 7,475' - 7,487' 5,084' - 5,096' 21 8,746' - 8,767' 6,354' - 6,375' 6 8,802' - 8,808' 6,410' - 6,416' The approval for this work also included secondary perforation targets. With the lack of production from the class-1 intervals, it was determined that the secondary target perforations had minimal potential for success. Marathon is choosing to forgo perforating/ the secondary targets at this time and evaluate future options. Anew 10-403 will be submitted once this evaluation is completed and a new plan forward is developed. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ,,,~ j-~„~,~ Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS STATE OF ALASKA ALASK~L AND GAS CONSERVATION COMMIS REPORT OF SUNDRY WELL OPERATIONS ~~oglta o ~i~E~,f '7 ~r10 ~[lwsitrn l1~1 ~ d~~e, ~'nrcce ~a~mm~enin.c 1. Operations Abandon Repair Well Plug Perforations Stimulate ~ ter Performed: Alter Casing ^ Pull Tubin^ Perforate New Pool ^ ~'~=?Of~f!$~ Waiver^ Time Extension Change Approved Program ^ Operat. Shutdowr^ Perforate ^~ Re-enter Suspended Well ^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: .Permit to Drill Number: ame: Development ^~ Exploratory^ 207-001 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20565-00-00 7. KB Elevation (ft): \ ` Well Name and Number: ~ 187' 21' AGL Grassim Oskolkoff #5 8. Property Designation: . Field/Pool(s): ADL - 389737 Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 10,384' feet Plugs (measured) g,2$0' true vertical 7,g87' feet Junk (measured) NA Effective Depth measured g,2$0' feet true vertical g,ggg' feet Casing Length Size MD TVD Burst Collapse Structural ~ ~ Conductor 60' 20" 81' 81' 3,060 psi 1,500 psi Surface 2,243' 9-5/8" 2,264' 1,912' 5,750 psi 3,090 psi Intermediate 6,709' 7" 6,730' 4,365' 7,240 psi 5,410 psi Production Liner 3,607' 41/2" 10,099' 7,705' 8,440 psi 7,500 psi Perforation depth: Measured depth: 7,475' - 8,808' True Vertical depth: 5,084' - 6,416' Tubing: (size, grade, and MD) Tie-back 4-1/2" L-80 6,492' ZXP Liner Packer w/ Tie Packers and SSSV (type and measured depth) Back Extension 6,492' ~ 12. Stimulation or cement squeeze summary: The perforations at 9,221'-9,235' MD were acid stimulated and later Intervals treated (measured): abando ned. Perforations were then added across the intervals of: 7,475'-7,487' MD Treatment descriptions including volumes used and final pressure : 8,746'-8,767' MD ' ' 8,802 -8,808 MD 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 745 Subsequent to operation: 0 0 0 0 745 14. Attachments: .Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ^~ Service ^ Daily Report of Well Operations X 6. Well Status after work: Oil ^ Gas ^~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309-259 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician Signature ~ ~ Phone (907) 283-1371 Date January 5, 2010 Form 10-404 Revised 04/2006 ~~MS ~ - S ~~~ f '" ~ Submit Original Only `~ Mara'dton Orations Summary Report by Job, ,~„~~' ~pjj~~ny Well Name: GRASSIM OSKOLKOFF 5 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 54 0600951688N01512915781W NINILCHIK GRASSIM OSKOLKOFF ALASKA USA Daily Operations Report Date: 9/14/2009 Job Cate o R&M MAINTENANCE _ 24 Hr Summary Spotted tank and CTU. MI gas buster, iron, choke, BJ equipment Ops Trouble ' Start Time ~, End Time I Dur(hrs) i Ops Code ~ Activity Cade Status Cade '~~, Comment 08:00 08:30 0.50 SAFETY MTG AF Safety meeting 08:30 11:30 3.00 RURD COIL AF Set containment. Spot tank and choke. Spot BJ equipment. 11:30 12:00 0.50 SECURE WELL AF Secure location and leave. Re ort Date: 9/15/2009 Job Category: R&M MAINTENANCE _ 24 Hr Summary RU BJ CTU and flowback equipment. Test BOP. Test waived by AOGCC. ~.-- --- ' - - Ops Troubte '~ ___ _ Start Time End Time Dur (hrs) Ops Code Activit Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM. Discuss BJ JSA, ASRC JSA, Safety checklist. Assign jobs and issue permit 08:30 11:45 3.25 RURD COIL AF Rig up BJ equipment and flowback equipment. 11:45 13:00 1.25 TEST BOPE AF Test lines, valves, blind rams, and pipe rams 250 / 4500 psi. Good test. 13:00 13:30 0.50 SECURE WELL AF Secure location and leave well. Report Date: 9116/2009 Job Cate o R&M MAINTENANCE 24 Hr Summary Pump 35 bbl mud acid job. N2 lift well. Blew we ll dry. No influx. Shut in pressure after injection stabilized Ops Trouble Start Time End Time Dur (hrs).. Ops Code Activity Code Status Code ~ Comment _ 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM. Discuss BJ JSA, ASRC JSA, Safety checklist. Assign jobs and issue permit. 08:30 10:00 1.50 RURD COIL AF RU CTU. PU Weatherford CT packer. Stab on well. 10:00 10:30 0.50 TEST EQIP AF Fill CT and PT 250/4500 psi. ___ 10:30 11:15 0.75 PICKLE TUBE AF Pump 1 Bbl 5% HCI and displace to tank. 11:15 14:00 2.75 RUNPUL COIL AF RIH CT packer. 14:00 14:30 0.50 PUMP WTR AF Set CT packer at 9010'. Pump 12.5 Bbls 6% KCI to fill CT. Inject 0.25 BPM at 2200 psi. Release packer. 14:30 16:45 2.25 PUMP ACID AF Pump 18 bbl NH4CI preflush. Pump 4 Bbl 5% HCI preflush. Pum 23 I 15% HCI / 3% HF mud acid. Set CT packer. Pump 12 Bbls 15% I / 3% HF (35 Bbls total). Pressure dropped from 2200 at 0.2 BPM to a final injection of 1.1 BPM at 2600 psi. SD. Pressure stabilized at 1500 psi?? Pump 18 Bbl NH4CI overFlush and displace with 12 Bbl 6% KCI. SD. Pressure stabilized at 1600 psi. Tight Zone? Release packer. Pressure dropped to 0 psi. 16:45 18:30 1.75 PUMP N2 AF Unload well at 1000 SCF/min N2. Max pressure 2700 psi. Reduced to 750 SCF/min after most water was through. SI N2. Pump pressure dropped to 300 psi. Flowing pressure 175 psi and dropping. Resume pumping N2 after 15 min. N2 at 200 scf/min. pressure stabilized at 312 psi. No influx. 18:30 20:00 1.50 RUNPUL COIL AF POH CT with well open to tank. 20:00 21:00 1.00 __ RURD COIL AF LD injector head and secure well. Close permit and leave location. Re ort Date: 9/17/2009 Job Cate o R&M MAINTENANCE __ 24 Hr Summary RD and release CT _ --- Ops Trouble Start Time End Time Dur (hrs) Ops Code i, Activity Code Status Code '~. Comment 10:00 11:00 1.00 SAFETY MTG AF Hold PJSM. Discuss BJ and ASRC JSA's. Assign tasks and issue permit. 11:00 15:00 4.00 RURD COIL AF RD CTU and release all equipment. Foowback iron is connected to well. Report Date: 9/18/2009 Job Category: R&M MAINTENANCE 24 Hr Summary RU and bullhead N2 to push water down. Final SIP = 4500 psi Ops Trouble End Time Dur (hrs) ' Ops Code Adrv'iy Ccde Status Cade Comment Start Ti me _ __ 09:00 10:00 1.00 SAFETY MTG AF Hold PJSM. Discuss BJ and ASRC JSA's. Assign tasks and issue permit. 10:00 12:00 2.00 RURD OTHR AF Wait on electricians and RU N2 unit. SIWHP <25 psi. Shoot fluid level at 6700'. ZXP at 6500'. 12:00 12:30 0.50 TEST EQIP AF Test lines to 250 / 4500 psi. __ 12:30 13:45 1.25 PUMP N2 AF Pump 120,000 SCF N2. P = 3300 psi. 13:45 14:45 1.00 SHOOT FLVL AF SD N2. P = 3300 psi. Shoot fluid level at 6875'. wait 30 min. P = 3200 psi. Fluid level = 6915'. www.peloton.com Page 1/4 Report Printed: 12/30/2009 M Marathonrations Summary Report by Jobs ~~t~HOa ®OlConnpany Well Name: GRASSIM OSKOLKOFF 5 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 166.00 187.00 21.00 1 /15/2007 9/18/2009 - _ .- _ _ Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code '' Comment 14:45 16:00 1.25 PUMP N2 AF Resume pumping N2. Pump additional 68,000. P = 4500 psi. SD pump. Wait 15 min. P = 4150 psi. resume pumping. P = 4480 psi. SD pumping. Final N2 total = 212,000 SCF. 16:00 17:00 1.00 RURD OTHR AF RD and release N2. Flowback iron is connected, ready for perforating after plug. Daily Operations Report Date: 9/24/2009 Job Category: R&M MAINTENANCE 24 Hr Summary MIRU Expro wireline. Repair leaking BOP. RIH w/ 3.80" GR and tag @ 9,272' RKB. RIH w/ PT tool and find fluid level @ 9,210'. RD for night. - _ _ - - _ i Ops Trouble i , Start Time End Time Dur{hrs) Ops Code Activity Code I Status Code Comment 07:30 08:30 1.00 __ SAFETY MTG AF --- Held PJSM w/ Expro and operator. Discussed muster areas, crane operations, and working at heights. Obtained safe work permit. 08:30 10:45 2.25 RURD ELEC AF RU wireline truck and equipment. PU 5.5" lubricator. 10:45 11:15 0.50 TEST EOIP AF PT lubricator to 3000 psi (well pressure). Slight leak in BOP valve stem. 11:15 12:00 0.75 REPAIR EQIP TA MSOT Repair and rebuild BOP. 12:00 12:15 0.25 TEST EQIP TA MSOT _ PT lubricator to 3000 psi. Good test. 12:15 14:00 1.75 RUNPUL ELEC AF RIH w/ 21' weight bars, 2" CCL, 10' spang/oil jars, and 3.80" GR. Sat down @ 2200'. POOH f/ roller bogeys. 14:00 17:00 3.00 RUNPUL ELEC AF RIH w/ same BHA & roller bogeys. Pumped 9 gal diesel. Tag fill @ 9272'. POOH. 17:00 20:30 3.50 LOG PROD AF RIH w/ PT survey tool. Fluid level @ 9210'. POOH. 20:30 21:30 1.00 RURD ELEC AF LD lubricator and RD for night. Secured well. Signed out, left location, and turned in safe work permit. Report Date: 9125/2009 Job Cate o R&M MAINTENANCE 24 Hr Summary RU Expro wireline. RIH w/ 3.5" CIBP and set @ 9,205' RKB. Bleed well down to 1500 psi for a successful 1500 psi negative pressure test on CIBP. Shut down operation for high winds. RD Expro. - Ops Trouble Start 7me - End Time Dut (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed manlift ops, cellphone policy, and working with explosives. Obtained safe work permit. 08:30 09:15 0.75 RURD ELEC AF RU wireline equipment and PU lubricator. 09:15 09:30 0.25 SAFETY MTG AF Held explosives safety meeting. Discussed cell phone policy, visitors, and posting signs. 09:30 10:00 0.50 TEST EQIP AF Arm setting tool with 3.5" CIBP and stab on well. PT to 3000 psi (well pressure). Good test. 10:00 12:30 2.50 SETREL PLUG AF RIH w/ setting tool and 3.5" CIBP. Correlate and set plug @ 9,205' RKB. Tag plug after set. POOH. 12:30 13:30 1.00 RURD ELEC AF Conditions are too windy to continue safe work. Shut down for night. LD lubricator and secure well for night. Sign out, turn in work permit, and leave location. Report Date: 9/26/2009 Job Cate o R&M MAINTENANCE _ 24 Hr Summary RU Expro wireline. Dump bail 38' of cement on top of CIBP @ 9210' RKB. RIH w/ 12' pert guns and perforate 7475'-7487' (corrected depth from OH log). Monitor pressure and RD for night. Well lost 80 psi WHP overnight. _ _ . _ _-- i Ops Trouble Start Time I End Time .Dur (hrs) - Ops Code Activity Gode Status Code.. _ _ Comment - 07:30 . - 08:15 0.75 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed cement handling hazards, working at heights, and working with explosives. Obtained safe work permit. 08:15 09:15 1.00 RURD ELEC AF PU lubricator and RU wireline equipment. PT lubricator to 1500 psi (wellhead pressure). Good test. 09:15 14:30 5.25 DUMPBL CMT AF RIH 2x with 40' x 3" dump bailer and dump 25 gal of Class G cement on top of CIBP. Estimate of top of cement: 9167'. 14:30 15:00 0.50 SAFETY MTG AF Held explosives safety meeting and prepared pert gun. 15:00 16:00 1.00 TEST EOIP AF Armed gun and PT lubricator to 2000 psi. Good test. 16:00 18:00 2.00 PERF TBG AF Bled WHP down to 1240 psi and RIH w/ 12' of 3 3/8" HSD pert guns, 6 spf and 60 deg phasing. Shot the interval 7475' - 7487' (depth corrected 7' from OH log). Positive indication of firing, no change in pressure at surface. 18:00 19:00 1.00 RURD ELEC AF LD lubricator and RD wireline equipment for night. Secure well, sign out, leave location, and turn in work permit. www.peloton.com Page 2/4 Report Printed: 12/30/2009 ,j ~~~ rations Summary Report by Jo~ ,~,'~-' ~Qjj~y ell Name: GRASSIM OSKOLKOFF Daily Operations Report Date: 9/27/2009 Job Cate o R&M MAINTENANCE 24 Hr Summary RU Expro wireline. RIH w/ 21' of pert guns and tag fluid level, 9,030' and cement top, PBTD: 9,158'. Perforate interval 8,746'-8,767' with no change in well pressure (1250 psi). Spent pert gun became stuck where it was shot, WT and pull out of rope socket. RIH w/ weight bar and CCL. Bumped gun down to PBTD. RD for night. Wellhead gained 75 psi over night. Ops i Trouble Start Time End Time D ur (hrs) Ops Code. Activity Code Status Code Comment 07:30 08:30 _ 1.00 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed working in-the wind, working with explosives, and smoking/muster areas. Obtained safe work permit. 08:30 09:00 0.50 RURD ELEC AF PU lubricator and RU wireline equipment. 09:00 09:45 0.75 TEST EQIP AF Held explosives safety meeting. Armed pert gun, PU, and PT lubricator to 2500 psi. Good test. 09:45 13:00 3.25 PERF TBG AF RIH w/ 21' of 3 3/8" HSD pert guns, 6 spf and 60 deg phasing. Tag fluid level @ -9030'. Tag cement top @ 9158'. Shot the interval 8746' - 8767' (depth corrected 3' from OH log). Positive indication of firing, no change in pressure at surface (1250 psi). Gun stuck at firing depth. WT and wireline pulled out of rope socket w/ 1200 Ibs overpull. POOH. Left in hole: 1 7/16" x 1' rope socket 3 1/8" x 2.5' CCL 3 1/8" x 0.4' top sub 3 1/8" x 1.2' PX-1 blasting sleeve 3 3/8" x 0.4' top sub 3 3/8" x 21' spent pert gun (expanded to 3 5/8") 3 3/8" tandem sub 3 3/8" bottom sub total length: 26.5' 13:00 16:45 3.75 RUNPUL ELEC TA NDSW Rehead rope socket & make up 3.125" CCL and 3.125"x7' weight bar. RIH to tag gun @ 8745'. Sit down on gun again and it fell to TD @ 9130'. POOH. 16:45 17:30 0.75 RURD ELEC TA NDSW LD lubricator and RD wireline equipment. Sign out, turn in work permit, and leave location. Report Date: 9/28/2009 Job Category: R&M MAINTENANCE 24 Hr Summary RU Expro wireline. RIH w/ rope socket fishing tool and latch fish. POOH w/ spent pert guns. RIH w/ 6' pert guns to shoot interval 8802'-8808'. Positive firing, no change in well pressure. RD Expro for night and monitor well pressure over night- 40 psi increase. Ops Toubte Start Time End Time Dur (hrs) Ops Code Acdivity Cade Status Code Comment 07:30 08:15 0.75 SAFETY MTG TA NDJK Held PJSM w/ Expro and operator. Discussed fishing operations, working at heights, and emergency procedures. Obtained safe work permit. 08:15 10:00 1.75 RURD ELEC TA NDJK RU wireline equipment and PU lubricator. MU fishing string and PT to lubricator to well pressure, 1325 psi. Good test. 10:00 12:30 2.50 ENGAGE FISH TA NDJK RIH w/ 1' RS, 13' weight bars, OJ, LSSJ, 1' x 3" centralizer, and rope socket fishing tool. Latch on fish first attempt. Pulled on fish 5 times and came free w/ 2200 Ibs overpull. POOH with fish. Succesful retrieval. 12:30 13:30 1.00 PULD BHA TA NDJK LD fishing string and MU pert string. 13:30 14:00 0.50 TEST EQIP AF Held explosives safety meeting. Armed pert guns and PT lubricator to 2500 psi. Good test. 14:00 16:00 2.00 PERF TBG AF RIH w/ 6' of 3 3/8" HSD pert guns, 6 spf and 60 deg phasing. Tag cement top @ 9158'. Shot the interval 8802' - 8808' (depth corrected 3' from OH log). Positive indication of firing, no change in pressure at surface (1200 psi). POOH. 16:00 17:00 1.00 RURD ELEC AF LD lubricator and RD wireline equipment. Secured well for night, signed out, turned in work permit, and left location. Report Date: 9/29/2009_ _Job Category: R&M MAINTENANCE 24 Hr Summary Shot fluid level at 8050'. Blew well down from 1240 psi to 610 psi. Fluid level raised to 7850. Blew well to 300 psi and left location. Well is lined up to record on scada. www.peloton.com Page 3/4 Report Printed: 12130/2009 -= Marathon rations Summary Report by Jo~ ,,,~-, ®Qjj~~ny ell Name: GRaSSIM OSKOLKOFF Start Time End Time ~ Dur (hrs) Ops Code I'i Activity Code Ops Status TrOUble Code Comment 11:00 12:15 1.25 SAFETY MTG AF Hold PJSM. Discuss Expro JSA and job. Assign tasks and issue work authorization. 12:15 13:00 0.75 RURD ELEC AF RU echometer and a-line unit. 13:00 13:15 0.25 SHOOT FLVL AF Shoot 3 fluid levels at 8050'. 13:15 14:15 1.00 SHOOT FLVL AF Bleed well from 1240 psi to 610 psi. Wait 5 min and shoot fluid level at 7860'. Wait 20 min and shoot fluid level at 7835'. Abort perforating job and release Pollard. 14:15 17:00 2.75 RURD ELEC AF Bleed wellto 300 psi and line up to record data in scada. RD and release eline truck. II www.peloton.com Page 4/4 Report Printed: 12/30/2009 Chemical Injection Mandrel @ 2,418' MD rassim Oskolkoff #5 Ninilchik Unit 3,083' FSL, 2,988' FEL Sec. 23, T1 N, R13W, S.M. mtermealate casmq 7" L-80 & P-110 26 ppf Top Bottom L-80 BTC MD 0' 4,293' TVD 0' 2,715' P-110 MD 4,293' 6,730' TVD 2,715' 4,365' 8-112" Hole cmt w/ 258 sks (114 bbls) 12.5 ppg Lead plus 160 sks (34 bbls)15.8 ppg Tail. Bumped plug, 20 bbl spacer to surface, 100 returns, floats held. Tagged PBTD at 9,158' RKB with wireline on 9 /2 812 0 0 9. Tagged PBTD at 9,956' CTMD with coiled tubing on 3/1112007. Tagged PBTD at 9,960' ELMD with eline on 9/28!2007. ,; TD: PBTD: 10,384' MD 9,158' MD 7,987' TVD 6,766' TVD caner 4-1 /2" L-80 12.6 ppf Hydril 563 Top Bottom MD 6,519' 10,099' TVD 4,171' 7,705' 7" Hole 1st Stage cmt w/ 145 sks (77 bbls) 10.5 ppg, 100 % returns, w/ -10-15 bbls cmt to surface. 2nd Stage cmt w/ 132 sks (68.5 bbls)10.5 ppg, 100 % returns w/ -10 bbls cmt to surface. 3-3/8",60°, 6 SPF (9/25/09) 3.3/8",60°, 6 SPF (9126/09) 3.318",60°, 6 SPF (9/27/09) 33/8",60°, 6 SPF (11/19/07) 3-3I8",60°, 6 SPF (5/30/07) MD Ft TVD Proposetl GO Tyonek Perfs: 7,764'-7,772' 8' 5.372'-5,380' 8,579'-8,587' 8' 6.187'-6,195' Active GO Tyonek Perfs: 7,475'-7,487' 12' 5,084'-5,096' 8,746'-8,767' 21' 6,354'-6,375' 8,802'-8,808' 6' 6,410'-6,416' Perfs isolated by Cast Iron Bridge Plugs: - , 14' 682&--6,843' Well Name & Number: Grassim Oskolkoff #5 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 7,475' - 8,808' Perf (TVD): 5,084' - 6,416' An le KOP ~ Depth: 5° / 100' 800' Angle Perfs: -2.6° Date Completed: 5/30/2007 Ground Level: 166' (AMSL) RKB: 21' (AGL) Revised by, Kevin Skiba Revision Date: 1/5/2010 t#: 207-001 50-133-20565-00-00 Des: ADL - 389737 ovation: 187' (21' AGL) de: 60° 09' 51.69" N tude: 151 ° 29' 15.78" W 229,026.87 2,255,049.14 1/15/2007 12:00 hrs 2/4/2007 17:00 hrs :leased: 2/19/2007 06:OOhrs M MARATNOM l Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 81' TVD 0' 81' surface casmq 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 2,264' TVD 0' 1,912' 12-1 /4" Hole cmt w/ 532 sks (232 bbls) 12 ppg cmt w/ 206 sks (90 bbls) of cmt to surface, floats held ~ (, ~ ~ ~ ,~ kp ~y~ ~E { C {. ~ ~4I ..~ fl .~~.~ ~` ~ y., i~y ~ ~ ~ !, G ~' 1 ,1. Y p 4~ j 4 ~ k ~'~, y ~~ Y ~¢ d p ~ ~ ~ k.,~ ~ ~ ~ ~z. ~ b° 9" ~ ~ ~ ~. k ~ ~ ~ f ,. ~ ~ ~ " ~'F~ ~ ~~ ~ Y ~ ~ n a ~ t~ ~ ~ k ~ ~ ~`~ ~ "~ ~ ~ ~ ~ ~~ ~ ~ ' E ~~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~~~ ~~~~~~ ~ ~ ~ ' SEAN PARNELL, GOVERNOR ~ ° . ~~ ~r 9 , ~ ~ ~ ~.~ ~ ~ ~ ~ ~ ,r ~ ~ ~ ~+SA. ~r~~~+ ~-.7 ~~ ~D Vrv-7 ~ 333 W. 7th AVENUE, SUITE 100 CO1~TS~R`QATIOrIT CODIl-IISSIOl~ ~ ANCHORAGE,ALASKA 99501-3539 PHONE (907) 279-1433 ' FAX (907)276-7542 Mr. Kevin J. Skiba Regulatory compliance Technician Marathon Oil Company P.O. Box 1949 ~ Kenai, Alaska 99611-1949 ~a ~ ~' p ~. Re: Ninilchik Unit, 'I`yonek Pool, Grassim OskolKoff #5 Sundry Number: 309-259 `~- E J ~ ~ ~OQ~ ~~r!,~~6~~~ ~; ~ ti s Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~ Cathy P. Foerster Commissioner f~- DATED this~ day of August, 2009 Encl. • • ~~,~. .~<.~ -Q g~ SEAN PARNELL, GOVERNOR ~ t Mr. Kyle Miranda Production Engineer Marathon Oil Company P.O. Box 1949 Kenai, Alaska, 99611-1949 ~~~ ~ ~~ Re: Ninilchik Unit, Tyonek Pool, Grassim OskolKoff #5 Sundry Number: 309-259 n~ ~ ~:,,~~~,~~ ,,' , ~; ~ f ~~~i'~ ; ,~,,~~~.: L, :.~.~.~ Dear Mr. Miranda: 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 fa11s on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unl~ss rehearing has been requested. Sincerely, Daniel T, Seamount, Jr. %~ Cha.ir DATED this / day of August, 2009 Encl. • ~ Marathon MARATHON Oil Company • Marathon Oif Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Te{ephone 907/283-1371 Fax 907/283-1350 . ~~G~IVED July 23, 2009 Mr. Winton Aubert Alaska Oii & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Grassim Oskolkoff #5 Dear Mr. Aubert: JUL 2 7 2009 ~4laska Oii & Gas Cons. Commission Anchorag~2 GO-5 was first completed in May of 2007. Efforts to produce this well in commercial quantities have been unsuccessful to date. Marathon is submitting, for your approval, an Application for Sundry Approvals to acid stimulate and add perforations to the Ninilchik Unit GO-5 well. Plans are to first stimulate the existing Tyonek perforations and then add pertorations, as required, to establish suitable gas production. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, . ~~~/ ~ . ~r~~'V ~ - s Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Operations Procedure Houston Well File Well Schematic Kenai WePI File KJ S ~.o~l ~ STATE OF ALASKA .C/d~ ALAS OIL AND GAS CONSERVATION COMMI ON $~`~ APPLICATION FOR SUNDRY APPROVALS ~n n n~ ~r non ~ECEIV~~`~~ ~a~•~1 JUL 2 7 2f~~~ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ~ Waiver Other Alter casin Re air weil 9^ p ^ Plug Perforations ~ Stimulate ~ ~~~p~a~~ Time Extension Cha~ge approved program ~ Pull Tubing ~ Perforate New Pool ~ Re-enter Suspended Well ~ 2. operator Name: MarathOtl OII COtll all / 4. Current WeII Class: 5. Permit to Drili Number. p ~ Development ~ Expioratory ~ 207-001 3. Address: p0 BOX 1949 Stratigraphic ~ Service ~ 6. API Number: Kenai Alaska, 99611-1949 50-133-20565-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property Iine where ownership or landownership cha~ges: Spacing Exception Required? Yes ^ No ~ Grassim Oskolkoff #5 9. Property Designation: 10. KB Elevation (ft): 11. Fieid/Pool(s): ADL - 389737 187' (21' AGL) Ninilch ik Unit / Tyonek Pool 12~ PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,384' 7,987' 9,280' 6,888' 9,280' NA Casing Length Size MD TVD Burst Collapse Structural Conductor gp~ yp" 81' 81' 3,060 psi 1,500 psi Surface 2,243' 9-5/8" 2,264' 1,912' S,750 psi 3,090 psi Intermediate g 709~ 7" 6,730' 4,365' 7,240 psi 5,410 psi Production Liner 3,607' 4-1/2" 10,099' 7,705' 8,440 psi 7,500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9,221' - 9,337' 6,829' - 6,945' Tie-back 4-1/2" L-80 6,492' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer w/ Tie Back Extension 6,492' 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ~ Exploratory ~ Develop ment ~ Service ~ 15. Estimated Date for 16. Well Status after proposed work; August 20, 2009 Commencing Operations: Oil ~ Gas ~ Plugged ~ Abandoned ~ 17. Verbal Approval: Date: WAG ~ GINJ ~ WINJ ~ WDSPL ~ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kyle Mirdnda Title Production Engineer Signature ~ r Pho i Date (907) 283-1370 July 23, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~Qy ~~q Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ~ Location Clearance ~ Other. ` ~S~ ~jO~E '~(~ 'TSOO Q~a . 1 Subsequent Form Required: ( Q - G~.'~ 4• B ~ APPROVED BY Approved by: ^ qM IS IONER THE COMMISSION ~ ~ ~ ~ ~ ~ ~ ~ ~ 1.~.1 t Date: ~ v 9~ i v ~ 1!1 !-l L. . , Form 10-403 Rev~ ed 06/2006 " ~ - ~- ~~ ~~"' - ~ ~-~ ~'~~~~ ~°~ ~ ` ~uhmrt ~n n~~nr~a+o ~ • • MARATHON Marathon Oil Corporation Field: Ninilchik WBS: requested 7/23 ~s~~~ Acidize and Perforate Well Status: No flowrate @ 745 psi and 0 bwpd. July 16, 2009 Obiective: Acidize single existing zone at 9221' - 9235' and add perforations uphole at the T048, T087a, and T087b sands in the Tyonek formation. Secondary zones may be perforated if primary intervals show no rate improvement. Primary T048: 7482' - 7494' MD T087a: 8749' - 8770' MD T087b: 8805' - 8811' MD Secondary T056: 7764' - 7772' MD T079: 8579' - 8587' MD Historv: 02-16-09: PT tag fluid level 7650' MD. Tagged CIBP at 9280 with 2.60" GR 11-17-07: Perf 9221' - 9235', shot wet, no pressure response. Procedure: Haul Tanks and Rental Equipment to Location Make arrangements with ASRC to lay liner and berm around flowback equipment. Deliver diesel fueled man-lift, two light towers (seasonal), and MOFO to location. Deliver MOC flowback tank, gas buster, and 2" SK choke skid to location. Deliver 80-100 bbl freshwater vac truck from ASRC. Deliver clean Rain-for-Rent fluid tank and fill with 500 bbls of 6% KCL water. Deliver 50/50 methanol (seasonal) water tank to location. Steam on Wheels to heat tanks (seasonal). Well house to be removed. 2. MIRU Coiled Tubin~ Unit and Nitrogen Unit MIRU ASRC crane and BJ 1-3/4" coiled tubing unit and nitrogen unit. Hold PJSM. Install BJ 4-1/16" SK flow cross on 4-1/2" Otis connection on top of swab valve. RU MOC flow back iron to allow circulation of fluids from the flow cross, through the choke skid, to the gas buster and flow-back tank. ASRC crane PU coil tubing BOP's and flange to flow cross. Pressure test BOP's with 50/50 methanol (seasonal) water to 250/4500 psi. Function test BOP accumulator. Submit required BOP Test Report to AOGCC. Displace methanol to tank with 6% KCL water. Stab coil tubing in injector assembly. PU injector head and lubricator with crane. Install dimple-on connector and pull test to 15K. MU injector head and lubricator on top of BOP's. Shell test to 1500 psi. Ensure N2lines are pressure tested as well; as they will be needed immediately following acid job. ~ • Natifv AUGC~C:; James Reg~ (au 907-793-1236 (24hrs or moYe) prior to CT BOP Test 3. RIH pumuin~ KCl water, Acidize, N2 Jet 1. Hold PJSM. RIH while filling well with KCl water to surface. 2. RIH while filling well with KCl water to surface. Keep back side open relieving trapped air and flowback to tank to spot first returns. 3. When coil reaches bottom at 9235', close backside. Injection test KCl water 5-10 bbl to determine ideal rate and pump pressure. 4. Open backside. Spot 15% HCl acid across more than the length of perfs, from 9235' to 9200'. Let acid mingle and soak for 30 minutes to 1 hr. 5. Close backside. Pump 1 coil volume (~ 27 bbl) acid while coil is at 9200'. Observe perf breakdown. 6. Post flush with 27 bbl KCl water while moving coil down slowly from 9200' to 9250' . 7. Open backside. Jet N2 down coil and flow up backside, displace fluid column/flowback from reservoir. (If hydrostatic is too much, move coil uphole to begin, then stage down). 8. Pull coil OOH, flow test zone 9221' - 9235'. 9. Rig back coil, flow test well overnight. 4. Contin~encv #1: Expro Set CIBP at 9205' Foilo~v ihis ~ontinbency ift~ere are no positi~,~e ii~dicatars fr~i~1 the a~idiz~d z~~~e. Cast Iron Brid~e Plu~ 3.50" OD, Part No. PLG 3500-001, Setting Range 3.826 - 4.090" 1. Hold PJSM. MI Rig up Expro. Pressure test lubricator to 1000 psi. 2. RIH with pressure & temperature tools to determine new fluid level. 3. If fluid level is reasonably high enough to warrant N2; rig up N2 unit and push back fluid before proceeding. Otherwise, RIH Expro with tool string to set Owen 4-1/2" CIBP at 9205' MD. 4. Pick back up and set down on plug to verify plug is set. POOH. GO 5 acid and perf - Kyle Miranda 7/23/2409 1:51:28 PM ~ • 5. Contin~ency #2: BJ Coil iet fluid out with IV2 . „ s -. ,_ .~_ { - '~,_;, , , . . ~~ :~, ~ •.;; ., , . : ,~.~ , , ._ _ .__ ,,, „ ... `, _., .~ _ ,. .. -. '' - ~,, ~;,~: ~, ~~ ~ ~..,. ~, ~~" . , < . ... _. 1. Hold PJSM. Rig up BJ N2 unit. Pressure test N2lines as before. 2. RIH with coil and stage down, beginning N2 pumping at predetermined fluid level. Jet fluid out of the hole and monitor returns at flowback tank. 3. POOH and return well to Expro. 6. Contingencv #3: Perforate F ~l±ii,~.s tl_!• ..";n~~~. ~TL31i.;~ 1 . ~ ~ ~ , r - ' ,t ~-.~ - ~ ,. _ - . ~ , .. .. . . - ~ il , .. ~ .. . t ~:.., . .... . , ~..: . , > ~ 5 ...~ ..,:i ~~t,l,'~~.,;~ !..~il ~S~.j!.~ (l~'l:~~..74'~i , `1'.~i~'~t.'.:~:ill . .~t' t~ ~,~ '. t~it . S~~ . _ . { ~ _ „ ~ '1 '~'. t .~.. .?il~: ~~7t'.,':~ ` ii~(_ irSl'tTilZ?t i::ti ; ~ ~. l:lii:)~t~;C~. Perf Summarv Shoot in the following order. Shooting shallow to deep due to potential stYengths of top interval, and depletion cha~acteristics of the T087 correlation into GO 1. Interval Top Bottom Net Gun Len ths N2 Surface P to shoot at: CH4 Surface P to shoot at: T048 7482' 7494' 12' 2 x 6' 1100 si 1180 psi T087a 8749' 8770' 21' 2 x 10' 1200 psi 1290 psi T087b 8805' 8811' 6' 1 x 6' 1200 psi 1290 psi "E i)°(, '7;'?~ "°;7? ~~" 1 ~~ 1 ,' ~ ~?; F~si ~ "'~ ~3 ;,i 'rt) %~? ~`yn~" "_`~7' ~;' ; x ~ ;1' 1 ~(.)0 ,~s; ' ~'3(', ,Ysi Guns to be used: 3-3/8" HSD guns loaded 6 SPF 60 degree-phased Charge: SPD-3125-311NT3 charges and PX-1 firing head. API targetperformance: 0.36" entrance hole and 40.25" penetration. Max gun swell in air: 3.635" OD. l. Hold PJSM. Rig up Expro. Pressure test lubricator to 3000 psi. 2. RIH with dummy guns to minimum depth needed for CCL correlation. POOH. 3. RIH with designated guns and perforate intervals, leaving well shut in for 15 minutes to observe pressure buildup after each run. Observe pressure and flow for at least 2 hours before shooting the next interval. 4. Monitor new flow rate and flow to sales. RDMO Expro, MO BJ coil and nitrogen. CONTACT5 Ken Walsh: 907-283-1311 (w) Kyle Miranda: 907-283-1370 (w) 907-394-3060 (c) 907-394-8271 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 GO 5 acid and perf - Kyle Miranda 7/23/2409 1:51:28 PM ~ API #: Grassim Oskolkoff #5 Ninilchik Unit 3,083' FSL, 2,988' FEL Sec. 23, T1 N, R13W, S.M. ~ Lonqi ~ X= ~i Y ~ I Spud: i i TD: i I, Riq R i PA #: 1 ~I ~ I i / ,~ .~ KOP @ BOD' MD/TVD Build 5.0 degN00' from 800-2140' MD Hold 67 deg trom 2740-4440' MD ~~op 2 degN00'to 7790' MD Hold 0 deg from 7790' to TD at 10386' MD Azimuth: 342.22 deg. ~ie-Back Tubing String - 4.5'. 12.6ii, L-80, Buttress Mod ;asing String - 4.5', 72.6~, L-B0. HytlN 533I563 'Baker Chemical Injection Nipple ~ 2415' MO (Top) 5.930' OD/3.858" ID ro &a30 psi bursV/500 psi collapse 'Z7{P liner Packer with 15' Tieback Eutension ~a 6.452' MD (TOp) 'Liner top C 6,519' MD •Flex-LOCk Liner Hanger C 6,530.5' MD (Top) 'Marker Joint Top @ 7457' MD (19 39' long) 'HES valve L 8420' KB (~.52' long) 6028' ND 'Marker.lnint To~ f~ .r,7a9' Mfl {~o.~s~ i.,,,~~ _ ~ ' 'Landing Collar ~,a` 9972' MD (Top) ~ 'float Collar Q 10,014' MD (Top) , ~ 'Fioat Shoe ~ 10.099 4' MD (Bottom) I .1 from 9950' - r 8460- 1 1 Expro Radial Bond Log (all 10.5 PPG cement): Run main CBL pass - 6270'. Bond looks good-excellent 9950-8590', fair 8590-8460', poo 6110', and fair-good 8110~492' (TOC is at ZXP packer at 6492' MD). I i I ~ M Nuw-rnoM Conductor 20" K-55 ~33 ppf PE Top Bottom MD 0' 81' ' TVD 0' 81' aunace casina 9-5/8" L-80 40 ppf BTC Top Botlom MD 0' 2,264' TVD 0' 1,912' 12-1/4" Hole cmt w/ 532 sks (232 bbls) 12 ppg cmt w/ 206 sks (90 bbls) of cmt to sur(ace, floats held mtermeoia~e casmq 7" L-80 8 P-110 26 ppf Top Bottom L-80 BTC MD 0' 4,293' TVD 0' 2,715' P-110 MD 4,293' 6,730' TVD 2,715' 4,365' S-1/2" Hole cmt w/ 258 sks (114 bbls) 12.5 ppg Lead plus 160 sks (34 bbls) ~5.8 ppg Tail. Bumped plug, 20 bbl spacer to surface, 100% returns,floats held. CIBP set @ 9,280' KB (11116I07) a ¢ a Q Tagged slick line (2117109) ~- ~ ~~~-~ a1 '~ a ~ a Tagged PBTD at 9,956' CTMD with coiled tubing on 3/11/2007. ~~~,,J I Tagged PBTD at 9,960' ELMD with eline on 9/28I2007. I ~ ` TD: PBTD: 10,384' MD 9,280' MD 7,987' TVD 6,888' TVD Attive GO Tyonek Undefined Perfs: Santl MD Ft TVD Gun 7vne Date 9,221'.9,235' t4' 6,829'• 6,843' 3-3l8".60°, 6 SPF (~1119/O7) Isolated by Cast Iron Bridge Plug @ 9,280' 9,307'•9,337' 30' 6.915'•6,945' 3318",60", 6 SPP (5/34I07) Proposed GO Tyonek Undefinetl Perfs: Pri mary: 74E 7462~~7,1l4' 12 SA9i' S ~03 il7a e 7~9~-e.no~ s~ 6.357~ 6 37E' TL7D 8,E03'•l,811' 6' 6 Nl'•~6 4'19' Sec ondary: rst ~~sa ~ n-t e s 3~z s iao' P° E 579' P SA? d 6.18T-E '95~ Well Name & Number: Grassim Oskolkoff #5 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borough State: Alaska Country: USA Perforations (MD): 9,221' - 9,235' Perf (TVD): 6,829' - 6,843' le KOP 8 De tt~: 5` ! 100' 800' Mgle Q Peris: -2.6° Date Completed: Revised by: 5/30/2007 Kevin Skiba Ground Level: Revision Date: 166' (AMSL) RKB: 21' (AGL) 7123/2009 ~~: zo~-oo~ 50-~ 33-20565-00-00 Des: ADL - 389737 ~vation: 187' (21' AGL) de: 60° 09' SL69" N tude: ~ 51 ° 29' 15.78" W 229.026.87 2,255.049.14 1/15/2007 12:00 hr5 2/M2007 ~ 7:00 hrs eleased: 2/19/20D7 O6:ODhrs Chemical Injection Mandrel ~ 2,418' MD Liner 4-7/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 6,519' 10,099' TVD 4,171' 7,705' 7" Hole 1 st Staqe cmt w/ 145 sks (77 bbls) 10.5 ppg, 100% retums, wl-10-15 bbls cmt to surface. 2nd Staqe cmt w! 132 sks (68.5 bbls) 10.5 ppg, 100 % returns w/ -10 bbls cmt to surface. . • ~<~ ~~ ~ ~ .._-, d..~ ..~ ~~., ,:P. ~. ~ ~ ; p ~..,. ~~ ~~ ~ffi ~ \ ~~ ~ ~ ~ ~ ~o ~~~ ~`~ ,~ ~ ~ ~ ~ ~ ~~~ ~ ~ ~ ~ ~~n~ ~ ~ ~ ~ ~ ' SEAN PARNELL, GOVERNOR ~ ~.~- ~ ~ ~ ~ ~ ~ ~ 1 ~ ~ ° ~ t~~~ ~ ~~~~ ~_. ~,; ~ : ~~ ~,~ ~ ~ ~:> ~ ~~~~ DI~ ~1`a~ u~-7 % 333 W. 7th AVENUE, SUITE 100 CO1~T5ERQATIOI~T COMI~IISSIOI~T ~`" ANCHORAGE, ALASKA 99501-353 PHONE (907) 279-1433 2' FAX (907) 276-7542 Mr. Kyle Miranda Production Engineer Marathon Oil Company P.O. Box 1949 Kenai, Alaska, 99611-1949 9 fi~~~~~~;: ,~ ~ ? ~:; r ~' ~ ~ ` : ~~~, Re: Ninilchik Unit, 'I~onek Pool, Grassim OskolKoff #5 _~ a l Sundry Number: 309-259 0~,~~ Dear Mr. Miranda: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. ~ Chair DATED this2 ~day of July, 2009 Encl. 5~ M Marathon MARATHON Oil Company • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~+~' V ~~ July 23, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Well: Dear Mr. Aubert: Ninilchik Unit Grassim Oskolkoff #5 ~~~. 2 7 2~t~~ ~lask~ Qil & Ca~s ~ans, Gomrnis~~an ~In~h~ar~~~ GO-5 was first completed in May of 2007. Efforts to produce this well in commercial quantities have been unsuccessful to date. Marathon is submitting, for your approval, an Application for Sundry Approvals to acid stimulate and add perforations to the Ninilchik Unit GO-5 well. Plans are to first stimulate the existing Tyonek perforations and then add perForations, as required, to establish suitable gas production. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, , ~ ` ~Q~w . Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-403 Application for Sundry Approvals cc: AOGCC Operations Procedure Houston Well File Well Schematic Kenai Well File KJS ~ p~ ~ ~v~ ~ STATE OF ALASKA ALA~OIL AND GAS CONSERVATION COMM~ON APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 y~~~~ ~tI~~EIVEC~ ~~. 7~21r?.oot ~ JU~ 2 7 2t10~ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^~ - p~$S(~~~ ~g ~Q~S. ~4~T111fiR1 Alter casing ~ Repair well ~ Plug Perforations ^ Stimulate Q ~ Time Extension ti~~lA~a~~! Change approved program ^ Pull Tubing ^ Perforate New Pool ~ Re-enter Suspended Well 2. operator Name: MaPatIl011 OII C0111 an p y 4• Current Well Class: 5. Permit to Drill Number: Development ~, Exploratory ~ 207-001 - 3. Address: p0 BOx 1949 Stratigraphic ~ Service ~ 6. API Number: Kenai Alaska, 99611-1949 50-133-20565-00-00 ~ 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: S i E ti R ? ~ ^ Grassim Oskolkoff #5 ' on pac ng xcep equired No Yes 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL - 389737 187' (21' AGL) Ninilch ik Unit / Tyonek Pool " 12• PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10,384' - 7,987' - 9,280' ~ 6,888' 9,280` NA Casing Length Size MD / ND Burst Collapse Structural Conductor 60' 20" 81' 81' 3,060 psi 1,500 psi Surface 2,243' 9-5/8" 2,264' 1,912' S,750 psi 3,090 psi Intermediate 6,709' 7" 6,730' 4,365' 7,240 psi 5,410 psi Production Liner 3,607' 4-1/2" 10,099' 7,705' 8,440 psi 7,500 psi PerForation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9,221' - 9,337' 6,829' - 6,945' Tie-back 4-1/2" L-80 6,492' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer w/ Tie Back Extension 6,492' 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ~ Exploratory ~ Development ^~ - Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencin O erations: August 20, 2009 g p Oil ^ Gas Q- Plugged ^ Abandoned ~ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ~ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Kyle Miranda Title Production Engineer Signature ~~ . Pho Date (907) 283-1370 July 23, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number:~Q '~I-~~9 Plug Integrity ^ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: ~25~ ~Q ~ ~ ~0 Q-SDO ~~'j(,, Subsequent Form Required: ~ 0 - ~„~ [~ • APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 71~ ~ Form 10-403 Revised 06/2006 Submit in Duplicate ~ ~ ~~ .;~~~ ~ t± 2~0° ~ • • AAARATNON Marathon Oil Corporation Field: Ninilchik WBS: requested 7/23 GO#5 Acidize and Perforate Well Status: No flowrate @ 745 psi and 0 bwpd. July 16, 2009 Obiective: Acidize single existing zone at 9221' - 9235' and add perforations uphole at the T048, T087a, and T087b sands in the Tyonek formation`~Secondary zones may be perforated if primary intervals show no rate improvement. Primary T048: 7482' - 7494' MD T087a: 8749' - 8770' MD T087b: 8805' - 8811' MD Secondary T056: 7764' - 7772' MD T079: 8579' - 8587' MD Historv• 02-16-09: PT tag fluid leve17650' MD. Tagged CIBP at 9280 with 2.60" GR / 11-17-07: Perf 9221' - 9235', shot wet, no pressure response. Procedure• Haul Tanks and Rental Equiument to Location Make arrangements with ASRC to lay liner and berm around flowback equipment. Deliver diesel fueled man-lift, two light towers (seasonal), and MOFO to location. Deliver MOC ` flowback tank, gas buster, and 2" SK choke skid to location. Deliver 80-100 bbl freshwater vac truck from ASRC. Deliver clean Rain-for-Rent fluid tank and fill with 500 bbls of 6% ! KCL water. Deliver 50/50 methanol (seasonal) water tank to location. Steam on Wheels to heat tanks (seasonal). Well house to be removed. 2. MIRU Coiled Tubin~ Unit and Nitro~en Unit MIRU ASRC crane and BJ 1-3/4" coiled tubing unit and nitrogen unit. Hold PJSM. Install BJ 4-1/16" SK flow cross on 4-1/2" Otis connection on top of swab valve. RU MOC flow back iron to allow circulation of fluids from the flow cross, through the choke skid, to the gas buster and flow-back tank. ASRC crane PU coil tubing BOP's and fl ~ to flow cross. Pressure test BOP's with 50/50 methanol (seasonal) water to 25 /'4~5~0 '`psi. Function test BOP accumulator. Submit required BOP Test Report to A6rGCC. Displace methanol to tank with 6% KCL water. Stab coil tubing in injector assembly. PU injector head and lubricator with crane. Install dimple-on connector and pull test to 1 SK. MU injector head and lubricator on top of BOP's. Shell test to 1500 psi. Ensure N2lines are pressure tested as well, as they will be needed immediately following acid job. ~ . Notify AOGCC James Re~g (a~ 907-793-1236 (24hrs or more) prior to CT BOP Test ~ 3. RIH pumping KCl water, Acidize, N2 Jet 1. Hold PJSM. RIH while filling well with KCl water to surface. 2. RIH while filling well with KCl water to surface. Keep back side open relieving trapped air and flowback to tank to spot first returns. 3. When coil reaches bottom at 9235', close backside. Injection test KCl water 5-10 bbl to determine ideal rate and pump pressure. 4. Open backside. Spot 15% HCl acid across more than the length of perfs, from 9235' to 9200'. Let acid mingle and soak for 30 minutes to 1 hr. 5. Close backside. Pump 1 coil volume (~ 27 bbl) acid while coil is at 9200'. Observe perf breakdown. 6. Post flush with 27 bbl KCl water while moving coil down slowly from 9200' to 9250'. 7. Open backside. Jet N2 down coil and flow up backside, displace fluid column/flowback from reservoir. (If hydrostatic is too much, move coil uphole to begin, then stage down). 8. Pull coil OOH, flow test zone 9221' - 9235'. 9. Rig back coil, flow test well overnight. 4. Contingencv #1: Exuro Set CIBP at 9205' / ~'ollow this contingency if there are no positive indicators from the acidized zone. Cast Iron Bridge Plu~: 3.50" OD, Part No. PLG 3500-001, Setting Range 3.826 - 4.090" 1. Hold PJSM. MI Rig up Expro. Pressure test lubricator to 1000 psi. 2. RIH with pressure & temperature tools to determine new fluid level. 3. If fluid level is reasonably high enough to warrant N2, rig up N2 unit and push back fluid before proceeding. Otherwise, RIH Expro with tool string to set Owen 4-1/2" CIBP at 9205' MD. 4. Pick back up and set down on plug to verify plug is set. POOH. GO 5 acid and perf - Kyle Miranda 7/23/2009 1:51:28 PM ~ L~ 5. Contin~encv #2: BJ Coil iet fluid out with N2 Fo1lt~l~r thi~ cc~rltingene~~ if Ex~~rc~'s PT ~;urv~t% {C'c~l~tin~er~c~t ~1) indicates a tluid le~~cl at ~810' or turtl~~r upllole. O~~ly t<>llo~~~ t~li~ contiilg~ncy if Contitige:~~cy ~ 1 l~ as f~~llo~~=ed, 1. Hold PJSM. Rig up BJ N2 unit. Pressure test N2lines as before. 2. RIH with coil and stage down, beginning N2 pumping at predetermined fluid level. Jet fluid out of the hole and monitor returns at flowback tank. 3. POOH and return well to Expro. 6. Contin~encv #3: Perforate Follo~~• tl~i5 contir~gency if Expro`s ~'T surve_y (t~c~ntitz~~ncy ~~1} inc~icates no tluid ]~v~l, c~r t7uid l~v~l deeper t}ian 8~ I0°. ~~r upon 4c~mpletic~n c~f C`c~~zti~zgenc~' ~2. Only fc~l~~~t~ this contin~~~~~y if ~ontingetlcy ~ 1 was falloti~ed. Perf Summarv Shoot in the following order. Shooting shallow to deep due to potential strengths of top interval, and depletion characteristics of the T087 correlation into GO 1. ~ ~ ~ ~ ~. ~ ~, = a. . . . ~. ~~; T048 7482' 7494' 12' 2 x 6' 1100 psi 1180 psi T087a 8749' 8770' 21' 2 x 10' 1200 psi 1290 psi T087b 8805' 8811' 6' 1 x 6' 1200 psi 1290 psi TGS~ 776~' 7772' 8' 1 x 10' 1125 psi l20O psi T07~ ~~i79' 8587' 8' 1 x 10' 12t)() ~~si J2{)0 ~~si Guns to be used: 3-3/8" HSD guns loaded 6 SPF 60 degree-phased Charge: SPD-3125-311NT3 charges and PX-1 firing head. API tar e~t performance: 0.36" entrance hole and 40.25" penetration. Max ~un swell in air: 3.635" OD. 1. Hold PJSM. Rig up Expro. Pressure test lubricator to 3000 psi. 2. RIH with duinmy guns to minimum depth needed for CCL correlation. POOH. 3. RIH with designated guns and perforate intervals, leaving well shut in for 15 minutes to observe pressure buildup after each run. Observe pressure and flow for at least 2 hours before shooting the next interval. 4. Monitor new flow rate and flow to sales. RDMO Expro, MO BJ coil and nitrogen. CONTACTS Ken Walsh: 907-283-1311 (w) Kyle Miranda: 907-283-1370 (w) 907-394-3060 (c) 907-394-8271 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819(c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-2831305 GO 5 acid and perf - Kyle Miranda 7/23/2009 1:51:28 PM , Permlt #: 2U7-UU1 API#: 50-133-20565-00-00 Prop. Des: ADL - 389737 KB elevation: 187' (21' AGL) Latitude: 60° 09' S1.69" N Lonqitude: 151 ° 29' 15.78" W X= 229,026.87 Y= 2,255,049.14 Spud: 1/15/2007 12:00 hrs TD: 2/4/2007 17:00 hrs Rig Released: 2/19/2007 06:OOhr: ~ • Grassim Oskolkoff #5 Ninilchik Unit 3,083' FSL, 2,988' FEL Sec. 23, T1 N, R13W, S.M. M ~u~-n~oM Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 81' rvo o• sr Intermediate Casinq 7" L-80 8 P-110 26 ppf Top Bottom L-80 BTC MD 0' 4,293' ND 0' 2,775' P-110 MD 4,293' 6,730' ND 2,715' 4,365' 8•1/2" Hole cmt w/ 258 sks (114 bbls) 12.5 ppg Lead plus 160 sks (34 bbls) 15.8 ppg Tail. Bumped plug, 20 bbl spacer to surface, 100 % returns,floats held. Liner 4-1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 6,519' 10,099' ND 4,171' 7,705' 7" Hole 1st Staqe cmt w/ 145 sks (77 bbls) 10.5 ppg, 100 % returns, w/ -10-15 bbls cmt to surface. 2nd Staqe cmt w/ 132 sks (68.5 bbls) 10.5 ppg, 100 % returns w/ -10 bbls cmt to surface. / ~~ Tagged PBTD at 9,956' CTMD with coiled tubing on 3/71/2007. ~~., ~ Tagged PBTD at 9,960' ELMD with eline on 9/2 812 0 0 7. TD: PBTD: 10,384' MD 9,280' MD 7,987' TVD 6,888' TV D Surface Casinq 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 2,264' TVD 0' 1,912' 12-1/4" Hole cmt w/ 532 sks (232 bbls) 72 ppg cmt w/ 206 sks (90 bbls) of cmt to surface, floats held Active GO Tyonek Undefined Perfs: Sand MD Ft TVD Gun Tvce Date 9,221'-9,235' 14' 6,829'- 6,843' 3-3/8",60°, 6 SPF (11/19I07) Isolated by Cast Iron Bridge Plug @ 9,280' 9,307'-9,337' 30' 6,915'-6,945' 3318",60°, 6 SPF (5/30l07) Proposed GO Tyonek Undefined Perfs: Pri mary: T48 7,482'-7,494' 12' S,091'-5,103' T87a 8,749'-8,770' 21' 6,357'-6,378' T87b 8,805'-8,811' 6' 6,413'-6,419' Se condary: T56 T79 7.764'-7,772' 8,579'-8,587' 8' 8' S,372'-5,380' 6,187'-6,195' Well Name & Number: Grassim Oskolkoff #5 Lease: Ninilchik Unit Municipality: Kenai Peninsula Borou h State: Alaska Country: USA Perforations (MD): 9,221' - 9,235' Perf (TVD): 6,829' - 6,843' An le KOP & Depth: 5° / 100' 800' An le Perfs: -2.6° Date Completed: 5/30/2007 Ground Level: 166' (AMSL) RKB: 21' (AGL Revised by: Kevin Skiba Revision Date: 7/23/2009 o J ~~~ DATA SUBMITTAL COMPLIANCE REPORT 6/212009 Permit to Drill 2070010 Well Name/No. NINILCHIK UNIT G OSKOLKOFF 5 Operator MARATHON OIL CO API No. 50-133-20565-00-00 MD 10384 TVD 7987 Compietion Date 5/31/2007 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes - --- --- ------ --- - DATA INFORMATION Types Electric or Other Logs Run: Weatherford Quad Comco / MFT / CMT LOG (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset log Log Run Interval OH / i e mearrrmc rvumoer ame acme meaia No Start stop cn Kecervea comments ED C Las 15259 nduction/Resistivity 2263 10328 Open 7/3/2007 Directional data, Mud Log data, OH logging data, Graphics pt Report: Final Well R Open 12/15/2008 Final Well Report, Table of Cont, Equip and Crew, ~ Well Details, Geo Data, ~~ Drilling Data, Daily Reports, .9.Pt 17318 Report: Final Well R Open 12/15/2008 Final Well Report, Table of Cont, Equip and Crew, Well Details, Geo Data, Drilling Data, Daily Reports i w/PDS Mug log Graphics I og Mud Log 2 Col 37 10384 Open 12/15/2008 MD Formation Log ~og ~ Mud Log 2 Col 37 10384 Open 12/15/2008 TVD Formation Log r -LOg Mud Log 2 Col 37 10384 Open 12/15/2008 MD Drilling Dynamics ~ og Mud Log 2 Col 37 10384 Open 12/15/2008 TVD Drilling Dynamics ~ og Cement Evaluation 2 Blu 3682 9952 Case 12/15/2008 Dual Radial CBL, GR, CCL Log Neutron 2 Blu 1550 6648 Open 12/15/2008 MD Photo Dens, Dual Q ~ ~ ~ ° ~N ~' ` ~ "'~ Spaced Nuetron g Ste-Netas ~ 2 Blu 2263 6688 Open 12/15/2008 MD Composite Log Log Sect4isf~'s ~ ~,,~~;~ 2 Blu 2263 6677 Open 12/15/2008 MD Comp Dens, Nuetron, Caliper, GR. DATA SUBMITTAL COMPLIANCE REPORT 6/2/2009 Permit to Drill 2070010 Well Name/No. NINILCHIK UNIT G OSKOLKOFF 5 Operator MARATHON OIL CO API No. 50-133-20565-00-00 MD 10384 TVD 7987 Completion Date 5/31/2007 Completion Status 1-GAS Current Status 1-GAS UIC N g Induction/Resistivity 2 Blu 4365 7928 Open 12!15/2008 TVD Array Induction Focused Electric Log Induction/Resistivity 2 Blu 6730 10324 Open 12/15/2008 MD Array Induction Focused Electric ' pt Directional Survey 0 10384 Open pt Pressure 0 0 MFT Pressure Test Table J Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cuttings 2260 10384 2/14/2007 1165 ~ ~- - --- - - ADDITIONAL INFORMATION Well Cored? Y~ Daily History Received? /c~~~s"'~~ N Chips Received? 47N'- Formation Tops l.~/ N Analysis Y~-t~ Received? Comments: Compliance Reviewed By: Date: Marathon GO-5 10-407 ~ ~ ~ ~~~ Saltmarsh, Arthur C (DOA) From: Gorney, David L. [dgorney@marathonoil.com] Sent: Tuesday, May 05, 2009 10:54 AM To: Saltmarsh, Arthur C (DOA) Cc: Skiba, Kevin J. Subject: Marathon GO-5 10-407 Hi Art, Page 1 of 1 Below are the corrected section distances for the GO 5 well. Please let me know if there are any further discrepancies. 4a. Location afUUeli(GrnrernmentalSection): Surface: 3,063' FSL, 2,858' FEL, Sec. 23, T1N, R13W, S.M. Tap o#Productive Horizon: 1,105' Fwl, 1,510' FSL, Sec. 14, T1N, R13W, S.hA. Total D epth: 510' FVtrL, 2.270' FSL. Sec. 14. T1N. R13Vt+. S.M. Thanks, David L. Gorney Geologist North American Production -Alaska Asset Team Marathon Oil Company Ph: 713.296.3473 5/5/2009 L~ M Marathon MARATHON Oil Company December 11, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-407 Well Completion Report and Log Field: Ninilchik Unit Well: Grassim Oskolkoff #5 Dear Mr. Maunder: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Enclosed please find the Well Completion Report and Log, 10-407, for Ninilchik Unit GO-5 well. This well was completed into the Tyonek formation in May of 2007. Additional perforations were added in November of 2007. Efforts to establish commercial production, from this well, have been unsuccessful to date. GO-5 is currently closed in with 720 psi tubing pressure. Future options are presently being evaluated to determine their probability of success. Please call me at (907) 283-1371 if you have any questions or require additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10-407 Well Completion Report & Log cc: Houston Well File Reference Attachment List Kenai Well File KJS KDW ,,~~~ i ,~1,~ ~ STATE OF ALASKA ~ tit ALA OIL AND GAS CONSERVATION COM SION WELL COMPLETION OR RECOMPLETION REPORT ia~~~ AND LOG Oil ^ Gas ~, Plugged ^ Abandoned ^ Suspended ^ 2oanczs.~os zoa,~~czs.~~o GINJ^ WINJ ^ WDSPL^ WAG ^ Other^ No. of Completions: 1 1 b. Well Class: Development ^~ Exploratory^ Service ^ Stratigraphic Test ^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 5/3)/2007 12. Permit to Drill #: 207-001 Sundry#: 3. Address: PO Box 1949 Kenai Alaska, 99611-1949 6. Date Spudded: 1/15/2007 13. API Number: 50-133-20565-00-00- 4a. Location of Well (Governmental Section): Surface: 3,083' FSL, 2,988' FEL, Sec. 23, T1 N, R13W, S.M. 7. Date TD Reached: 2/4/2007 14. Well Name and Number: Grassim Oskolkoff #5 - Top of Productive Horizon: 1,529' FWL, 2,666' FSL, Sec. 14, T1 N, R13W, S.M. 8. KB (ft above MSL): 21' Ground (ft MSL): 166' 15. Field/Pool(s): Total Depth: 474' FWL, 2,314' FSL, Sec. 14, T1 N, R13W, S.M. 9. Plug Back Depth(MD+TVD): 9,960' 7,567' Ninilchik Unit / Tyonek Pool 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 229,026.8 Y- 2,255,049.1 Zone- 4 10. Total Depth (MD +TVD): 10,384' - 7,987'- 16. Property Designation: ADL - 389737 ' TPI: x- 227,900.8 Y- 2,258,851.3 Zone- 4 Total Depth: x- 227,642.5 Y- 2,259,553.0 Zone- 4 11. SSSV Depth (MD +TVD): NA 17. Land Use Permit: 18. Directional Survey: Yes ~ No (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: Nq (ft MSL) 20. Thickness of Permafrost (TVD): NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Weatherford Quad Combo, Multi Formation Test, Cement Bond Log 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 133 K-55 0' 81' 0' 81' Driven NA NA 9-5/8" 40 L-80 0' 2,264' 0' 1,912' 12-1/4" 532 sks of Class G 206 sks 7" 26 L-80 0' 4,293' 0' 2,715' 8-1/2" 418 sks of Class G 0 7" 26 P-110 4,293' 6,730' 2,715' 4,365' 8-1/2" " 4-1/2" 12.6 L-80 6,519' 10,099' 4,171' 7,705' 7" 277 sks of Class G _ 20-25 sks 23. Open to production or injection? Yes Q No ^ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Gun Type 4-112" 6,492' 6,492' 9,221' - 9,235' 6,829' - 6,843' 3-3/8" HSC gun, 6spf, 60° 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: NA Method of Operation (Flowing, gas lift, etc.): Date of Test: NA Hours Tested: Production for Test Period Oil-Bbl: 0 Gas-MCF: 0 Water-Bbl: 0 Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 0 Water-Bbl: 0 Oil Gravity -API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^ No Q If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. .'V //.' ~~ a. Form 10-407 Revised 2/2007 ~~/ {'~(~ ~ `~~~~~~~ ~ -~~~' ~ ~~~ (~ 28. GEOLOGIC MARKERS (List all formations and m encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ~ Yes No ff yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost -Top detailed test information per 20 AAC 25.071. Permafrost -Base Beluga 1,300' 1,093' 5/31/2007 Perforate 9,307' - 9,337' MD - No pressure change after perforating. Interval Tyonek 5,840' 3,604' isolated with Cast Iron Bridge Plug (CIBP). 11/19/2007 Perforate 9,221' - 9,235' MD - No change in pressure after perforating. Formation at total depth: Tyonek 10,384' 7,987' 30. List of Attachments: Directional Surve ,Well Schematic, O erations Summa ,Multi Formation Test, Quad Combo & Cement Bond Lo s 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Ken D. Walsh Title: Senior Production Engineer Signature: ~ ,, ~.l - Phone: (907) 283-1311 Date: December 11, 2008 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I 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 Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ~ ~ December 11, 2008 Grassim Oskolkoff #5 Ninilchik Unit Attachment List End of Well Report Well Schematic Directional Survey Multi Formation test Operations Summary Logs: • Cement Bond Log • Composite Log MD • Photo Density Dual Spaced Neutron MD • Array Induction Focussed Electric MD • Array Induction Focussed Electric TVD • Comp. Density /Neutron Caliper & Gamma Ray MD Compact Disc • Submitted July 2, 2007 M Nlargthon _ Operations Summary Report xtaaATeoir ®OilCompsny Well Name: GRASSIM OSKOLKOFF 5 Qtr/Qtr, Block, Sec, Town, Range Field Name License No. State/Province Country 54 0600951688N01512915781 W NINILCHIK GRASSIM OSKOLKOFF ALASKA USA Daily Operations Report Date: 119/2007 Job Cate o DRILLING 24 Hr Summary Rig Down Move To GO-5 Well. Wait On Weather -26 Below Ops Troutile Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 MOB RIG_ AF PJSM: Remove Roof And Tarp From Shop And Parts Houses. Spool Up Electrical Lines F- Dog House And Choke House. Thaw Out Boiler. 09:30 11:00 1.50 RURD_ RIG_ TA WD_ Wait on Weather -26 Below, Unable To Operate Crane For Heavy Lifts Dog House And Choke House Removal From Rig Floor). 11:00 06:00 19.00 RURD_ RIG_ AF PJSM; Remove Stairs And Landings. Crane Down Dog And Choke Houses, Fuel Tank ,Gray Iron And Windwalls. Remove Lights From Houses Pits And Support Buildings. Warm Up Oil On Carrier. Thaw Out Air Lines On Carrier. Make Up Trailer Loads. Set Carrier On Wheels. Chip Ice Around Pits And Pump Room. Work On Carrier (Frozen Air Lines) .Move Bop Stack, Cuttings Pit. Cat Walk Mattting Boards To Go 5 Well. Note Heater Hose Line To Carrier Cab Heater Split Causing 2 Cups Of Anti Freeze To Spill On Pad. Re ort Date: 1/10/2007 Job Cate o DRILLING 24 Hr Summary R/D & Move Rig To GO-5 Location Ops Trouble Start Time End Time _Dur (hrs) Ops Code Activity Code Status Code Comment __ 06:00 12:00 6.00 RURD_ RIG_ AF PJSM; Load Out PartsAnd Shop Trailers. Boiler, Water Tank, Generator Houses. Pit And Pump Units And Ship To Location. 12:00 16:30 4.50 RURD_ RIG_ TA WD_ Attempt To Move Carrier From Mud Boat, - 27 Deg. Cotta Box Shift System Not operating Due To Extreme Low Temp. R/U Air Heaters And Warm Up System. 16:30 06:00 13.50 RURD_ RIG_ TA WD_ Move Carrier From Mud Boat And Scope Down Sub. Cont. Heating Carrier. Thaw Out Air Lines. Remove Ice And Load Out Matting boards. Clean Up Location. Set Boiler, Water, Tank And Generator Houses. Set pit And Pump Units On GO-5 Report Date: 1/11/2007 Job Cate o DRILLING 24 Hr Summary Move And Rig Up On GO-5 - Ops Trouble:.- Start Time End Time Dur (hrs) Ops Code. Activity Code Status Code Comment 06:00 06:00 24.00 RURD_ RIG_ AF _ PJSM; Load Out Sub, Mud Boat And Carrier. RlD Camp And Trailers Move TO G05. Set Sub, Mud Boat And Carrier. R/U Camp. Run Electrical And Water Lines. PJSM; Crane. Set Fuel Tank. Set Walkways And Cable Trays. Scope Up Sub. Set Wind Walls Choke House And Stair ways. Set Gray Iron. Start Pulling Electrical Service Lines To Sub And Pits. No Acccidents Spills Or Near Misses. Re ort Date: 1/12/2007 Job Cate o DRILLING 24 Hr Summary R/U GD 1 Go-5 Well - - Ops Troutile a 'Start Time End Time Dur (hrs) Ops Code Actively Code Status Code Comment 06:00 12:00 6.00 RURD_ RIG_ AF PTSM; Set Conex, Flow Line Stairs And Landing. Prep Carrier And Mast For Scope Up. Set Epoch Unit R/U Probes For Pits. Run Electrical And Service Lines. 12:00 13:00 1.00 SAFETY MTG_ AF Weekly Safety Meeting 13:00 06:00 17.00 RURD_ RIG_ AF PTSM; Raise Mast To Floor. Set Back Windwalls Landings And Stairs. Install Lights On Dog House And Rig. Make Up Service Lines Between Modules and Rig. Spot BHI Unit. Set Trip Tank. R/U Pits Install Pop Off Lines Set # 3 Mud Pump. Scope Up Mast. Roll Out Canvis Cover Over Carrier. Set Guy Wires And Tighten Turnbuckles. Fire Boiler And Run Steam Around Rig And Pits Report Date: 1/13/2007 Job Cate o DRILLING 24 Hr Summary Rig Up GD-1 www.peloton.com Page 1/19 Report Printed: 9/11/2008 -' Nl~r~on Operations Summary Report ,Y,,,M ®Qj~(;p~ryy Well Name: GRASSIM OSKOLKOFF 5 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) K&Ground Distance (ft) Spud Date Rig Release Date 0.00 166.00 187.00 21.00 1 /15/2007 2/8/2007 Ops Trouble Start Time End Time. Dur (hrs , - Ops Code Activity Code. Status Code Comment 06:00 06:00 24.00 RURD_ SLIK AF PJSM; R/U Stairs From Conex To Rig Floor, Poor boy Degasser, And U-Tube. Work On Man Rider Controls. Install Torque Tube Trouble Shoot Draworks Drun Clutch Controls, P/U Top Drive. Thaw Out Cellar And Cuttings Tank. Troubleshoot Disc Brake Controls. Run Water Line To Draworks. String Up Geo Cable. Screen Up Shakers. Start Adding Water To Pits For Spud Mud. Complete Hook Up Of Service Lines Steam, Water Electrical And Control, To Rig. Daily Operations Re ort Date: 1114/2007 Job Cate o DRILLING 24 Hr Summary Complete R/U GD-1 On G05 ,Accept Rig 0500hrs, N/U Diverter Ops Trouble Siart Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD_ RIG_ AF PJSM; R/U Top Drive, Pump Cellar Set Base Plate On Conductor. Fill Pits With Water. R/U Hanson Tank. Install Flow Line Sensor. P/U Tongs ,Spinners,Slips Elevators, Sub Rack And Subs. M/U Choke Line And Kill Line Hoses. Complete R/U Of # 3 Mud Pump. Function Test Agitators, Mix Pumps And All Pit Equiptment. Repair Water Line #3 mud pump Room. 12:00 16:00 4.00 REPAIR RIG_ TA MSHS Repair Slide Extend Arms On Top Drive And Troubleshoot and Repair Disc Brake Control Plugs 16:00 05:00 13.00 RURD_ RIG_ AF Weld Brackets For Control Lines To Manriders. Complete Welding Of Base Plate And Drain On 20"" Conductor. Function Test Top Drive 05:00 06:00 1.00 NUND BOPE AF PJSM; Pull Out Bridge Crane I-Beams And Set Diverter Stack N/U Same. Accept Rig 0500hrs. 1-14-07 Report Date: 1115/2007 Job Cate o DRILLING 24 Hr Summary N/U And Test Diverter System. Rig Start Up Audit. Repair Rig. P/U 5"" D/P Ops Trouble StartTime End Time Dur{brs) Ops Code Activity Code Status Code Comment 06:00 20:30 14.50 NUND BOPE AF PJSM; Continue N/U Diverter System, Drilling Nipple Flowline, Trip Tank And Fill Up Lines. Install Diverter Line Hook Up Gas Alarms. Complete Mixing Spud Mud During N/U. 20:30 21:30 1.00 REPAIR RIG_ TA WD_ R/U Windwalls On Board, Thaw Out Trip Tank Lines Repair Rig Floor Drain. Repair And Adjust Crown-O-Matic 21:30 00:00 2.50 INSPCT RIG_ AF Rig Condition Audit Inspect Mast,Tugger Lines All Pins And Keepers, Mud And Water Lines. Function Test All Controls and Safety Shut Downs. 00:00 01:30 1.50 TEST_ BOPE AF Function Test Diverter System And Accumlator Test Successful. Witnessed By AOGCC Rep. Lou Grimaldi 01:30 02:30 1.00 REPAIR RIG_ TA MSHS Repair Crown-O Matic And Elevator Controls 02:30 06:00 3.50 PULD_ OP_ AF PJSM; R/U And P/U 5' Drill Pipe Re ort Date: 1/16/2007 Job Cate o DRILLING 24 Hr Summary Pick up 5"" drill pipe. Thaw line to drawworks brakes. Pick up 12.25"" assembly and clean out conductor to 81'. Drill ahead to 825'. Returns showing sand, silt, coal and gravel. Ops Trouble StartTime End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 PULD_ DP_ AF PJSM;Cont. P/U 5"" Drill Pipe 08:30 10:00 1.50 REPAIR RIG_ TA WD Water Line To Draworks Brakes Frozen Work To Thaw Out. 10:00 12:00 2.00 PULD_ BHA_ AF PJSM; P/U M/U 12 1/4 Conductor Clean Out BHA 12:00 20:00 8.00 DRILL_ ROT_ AF Tag Bottom At 37', Drill/ Clean Out 20"" Conductor To 81' Drill Ahead To 344' (Conductor Shoe Slick) Shoe. ART= 4.5 AST= 0. No Gain/ Loss Spud GO-5 @ 1200hrs 1-15-07 20:00 21:00 1.00 TRIP_ BHA_ AF POH For BHA At 344' Normal TQ Drag No Gain/ Loss 21:00 23:30 2.50 PULD_ BHA_ AF L/D Shock Sub. P/U Stab,Pony D/C, MWD, 2 Flex Collars And Shock Sub 23:30 00:00 0.50 TRIP_ BHA_ AF RIH W BHA, Pulse Test MWD. 00:00 06:00 6.00 DRILL_ SLID AF Drill Slide Survey F- 344' - 825' Normal TO Drag No Gain Loss. Increase Pump Rate To 650GPM No Excessive Loss Of Fluids Over Shakers. HVY Returns Of Sand, Silt Coal & Gravel Over Shakers. ART= 3.1 AST= .6 Up Wt= 55k DN. Wt.= 52K. Rt Wt = 55k TQ 7-9k ADT=3.1 AST=.6 www.peloton.com Page 2/19 Report Printed: 9/11/2008 -- Mere'thpn ~ Operations Summary Report ~ ~~ ®01~C017~nY Well Name: GRASSIM OSKOLKOFF Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 166.00 187.00 21.00 1 /15/2007 2/18/2007 Daily Operations Report Date: 1/17/2007 Job Cate o DRILLING 24 Hr Summary Slide drill 12.25"" surface hole from 820' to 2083'. Ops Trouble '. Start Time End Time f Dur (hrs): Ops Code Activity Code ~ Status Code i Comment 06:00 06:30 0.50 DRILL_ _ SLID AF Drill Slide Survey from 820-840. Art=O Ast =.2 06:30 07:00 0.50 REPAIR RIG_ TA MSPW Rig Generator Shut Down Due To Temp. Re-Start 07:00 12:00 5.00 DRILL_ SLID AF Drill Slide Survey F- 840'-1196' No Gain/ Loss. UP Wt.= 64k Dn. Wt.= 61 k Rt. Wt.= 62k Tq 3-4k Art=1.1 Ast=2.0 12:00 06:00 18.00 DRILL_ SLID AF PTSM; Drill Slide Survey F- 1196-2083' No Gain Loss. Up Wt. = 74k Dn. Wt.=65k Rt. Wt.=68k TO 3-4k. ART= 3.9 Ast=8.8 Pump Hi Vis Sweep No Inc In Cuttings Upon Return Of Sweep To Shakers. Report Date: 1/18/2007 Job Cate o DRILLING 24 Hr Summary Drill 2083'-2265'. TD surface section. Circ. POH wiper trip f/ 2265'. RIH circ/cond hole. TOH f/ surf csg. RU tools. Running 9-5/8"" csg. _ _ - Ops Trouble _ _S :rtTln,~ End Time Dur(hrs) OpsCode Activity Code Status Code Comment 06:00 10:00 4.00 DRILL_ SLID AF Drill Slide Rotate 2083-2265' TD Surface Section. Up Wt.= 75 Dn. Wt= 67 RT. Wt=7 = - _ .7 Ast=1.9 No Gain Loss Normal Tq & Drag 10:00 10:30 0.50 CIRC_ MUD_ AF Circulate bottoms-up. Pump dryjob. 10:30 15:00 4.50 TRIP_ WIPR AF PJSM. POH SLM wiper trip from 2265' to surface. No correction on SLM. No drag on trip, no mud aain/losses to hole. Bit was balled-up. 15:00 15:30 0.50 SERVIC RIG_ AF Service rig and topdrive. 15:30 17:30 2.00 TRIP_ DP_ AF Trip in hole. No problems. Tag bottom, no fill. 17:30 19:00 1.50 CIRC_ MUD_ AF Circulate hi-vis pill and condition hole for csg. 19:00 23:30 4.50 TRIP_ BHA_ AF TOH for csg. LD BHA. 23:30 00:00 0.50 CLEAN_ RIG_ AF Clean floor, blowdown mud lines. 00:00 03:00 3.00 RURD_ CSG_ AF PJSM. Changeout bails. RU floor and Weatherford csg tools. 03:00 03:30 0.50 SAFETY MTG_ AF Hold Safety Meeting with Weatherford and rig crews. Discuss procedures and identify hazards. 03:30 06:00 2.50 RUN_ CSG_ AF Make-up 9-5/8"" 40# L-80 BTC shoe track and test. Continue running csg. Re ort Date: 111912007 Job Cate o DRI LLING 24 Hr Summary Run 9 5/8 Csg To 2265' F/C At 2220.2' Shoe At 2264'. Circ. Cement 9 5/8 Csg. N/D Diverter System. WOC. Clean Pits. NU wellhead. OPs Trouble: --- Start Time End Time Dur (hrs) Ops Code Activity Code '~ Status Code Comment _ 06:00 08:30 2.50 RUN_ CSG_ AF Continue running 9-5/8"" 40# LL-80 cscs .Total Of 55Joints & 1 Pup Jt. F/C At 2~~b''~'31 oe~CtT1'fb~'T~o ~aln-Loss. Correct Disp. 08:30 09:00 0.50 RURD_ CMT_ AF R/U BJ Cement Head Amd Cmt. Lines 09:00 10:00 1.00 CIRC_ MUD_ AF Circ.And Condition Mud. B/ U Gas 46 Units Hvy Returns Of Clay Coal And Sand. Circ Shakers Cleaned Up 1.5X B/U 10:00 14:00 4.00 PUMP_ CMT_ AF PJSM; Cement 9 5/8 Csg. Pump 40bbls Mud Clean.W Rig Pumps. Drop Bottom Plug, Pump 2 bbls H2o Test Lines To 3000 psi Batch Up Cement, Pumo 232bb1s 532sx 12.Oppg Class G With A Yield Of 10.339 Gal/Sx. Drop Wiper Plug W/ 2 bbls H2o, Confirm Plug Dropped. Displace W 166bb1s 9.2 Mud@ 322psi, Bump Plug W/1032psi. At 170bb1s, 4bbls Over Calculated Displacement. Hold For 5min. Floats Held. BJ Flow Meter Not Operating And Pumps Only Able To Displace From 4.5 Down To 1.2bbls Per Min For Last 30 bbls. CIP @ 13:21 hrs. Note: Lost Circulation, 16bbls As Cement Turned Corner. BJ Increased Pump Rate To 6.5bbls Per Min. Reduced Rate To 3.5bbls & Reciprocate Pipe, Circulation Returned. No More Losses.Cement To Surface. 90bbls Excess Into Cellar. 14:00 15:00 1.00 RURD_ CMT_ AF Blow Down Mud lines, R/D Cement head, Clear Rig Floor 15:00 21:30 6.50 NUND BOPE AF WOC N/D Diverter Line, Clean Pits www.peloton.com Page 3/19 Report Printed: 9/11/2008 M MS~ip11 Operations Summary Report xuwtTxoM ~OIICOtt7peitly Well Name: GRASSIM OSKOLKOFF 5 Casing Flange Elevation (ft) Ground Elevation (ft) KB-Casing Flange Distance (ft) KB-Ground Distance (ft) Spud Date Rig Release Date 0.00 166.00 187.00 21.00 1 /15/2007 -- I Ops Trouble - _ _ _ Start Time End Time Dor (hrs) Ops,Code Activity Code Status Cade Comment 21:30 00:00 2.50 NUND BOPE AF PJSM. Check celllar for explosive gases. Make rough cut on 9-5/8"" csg and LD. ND diverter and set out from cellar. Remove 20"" starting head and remove. Observe cement level at surface. 00:00 06:00 6.00 NUND WLHD AF PJSM with new crews review plan forward. Vac all fluids from cellar. Warm wellhead with steam. Make final cuts on 9-5/8"" and 20"" csgs. (20"" full of cement making it difficult to cut) Same time NU HCR valve and DSA on BOP stack. MU Veco lower 11 "" 5M x 9-5/8"" Sliploc wellhead, DSA and spacer spool. Start mixing new mud. Daily Operations Report Date: 1/20/2007 Job Cate o DRILLING 24 Hr Summary N/U Wellhead. N/U BOPE & Test. PU drillpipe Ops Trouble - StartTime End Time Dur (hcS) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 NUND WLHD TA _ MSWH Remove Vetco Multi Bowl Well Head (Not Seating Properly, Rolled O- Ring) Re-Dress 9 5/8 Csg Top. N/U Wellhead. Test Slip Lock Seat To 2500 psi F-30min. Test Good. Mix 9.Oppg Flow Pro Mud 08:00 16:00 8.00 NUND BOPE AF PJSM; N/U BOPE. Set 11X 13 3/5 5000 DSA Set Bo Sta k. N/U Choke And Kill Ines / H K Valve& Wing Valves. R/U Flow Nipple, Flow line,& Trip Tank Lines. Install Koomey Lines. Mix new Flo-pro mud. 16:00 17:00 1.00 CHANGE EQIP AF P/U Rig Tongs Elevators. Rig up Floor 17:00 23:00 6.00 TEST_ BOPE AF PJSM; Shell Test BOPE to 2500psi. One leak oh choke line, P/U M/U Test Joint, upper/lower kelly valves. Following test witnessed by AOGCC rep Low Grimaldi. Tested H2S and methane detectors. First BOP test found leak on single gate door seal and lower flange tighened and continued testing all BOPE componets to 250 psi low and 2500 psi high for 5 min each. Drawdown tested accumulator. All passed w/o problems. Pulled test plug. 23:00 01:00 2.00 REPAIR EQIP TA MSFL Door Seal Leaking On single gate. replace seal, tighten flange bolts on choke line 01:00 02:00 1.00 RUNPUL WBSH AF Install wear bushing and run-in 2 lockdown screws. Clean-up tools and area from testing. Slowdown choke manifold. 02:00 05:30 3.50 PULD_ DP_ AF PU 64jts. drillpipe. 05:30 06:00 0.50 PULD DP_ AF POH standback 32 stds DP. Re ort Date: 1/21/2007 Job Cate o DRILLING 24 Hr Summary P/U DP. M/U Bha. Rih. 2050' Circ. Test 9 5/8 Csg. 2500psi./30min. Drill Shoe Track To 2265'.Drill 20' New Hole To 2285'.Circ Displace W 9.1 ppg Flow Pro Mud .Perform LOT.9.1ppg 840psi =17.6 EMW At 1920'tvd Drill 2265-3019'. - ---- - Ops Trouble .'Start Time End Time Dur(hrs) - Ops Code Activity Code Status Code Comment _ 06:00 06:30 0.50 PULD_ DP_ AF Continue standing back drillpipe. 06:30 10:00 3.50 PULD_ BHA_ AF PJSM; P/U M/U 8 1/2 BHA RIH, Pulse Test Mwd 10:00 10:30 0.50 SERVIC RIG_ AF Service Rig 10:30 12:00 1.50 CLEAN_ RIG_ AF Rig Inspection, Clean Rig, Remove excess Ice Build Up On Walk Ways Cellar and Berm Area 12:00 13:30 1.50 PULD_ DP_ AF PJSM ; P/U Drift RIH W/ 5"" DP. 13:30 14:00 0.50 PULD_ DP_ AF Stand Back Drillpipe 24 Stands 14:00 16:30 2.50 PULD_ DP_ AF P/U Drift RIH W/ 5"" Drillpipe To 2050' 16:30 17:00 0.50 CIRC_ CFLD AF Circulate And Condition Mud For Csg. Test. 17:00 17:30 0.50 TEST_ CSG_ AF PJSM; Test 9 5/8 Cs .2500 / 30 Min. „ 17:30 18:00 0.50 TRIP_ DP_ AF RIH tag at 2223'. 18:00 19:30 1.50 DRILL_ CMT_ AF Drill float equipment and cement from shoe track. 400gpm 775 psi 10-15k WOB 19:30 20:00 0.50 DRILL_ ROT_ AF Drill new formation from 2265' to 2285'. CBU 20:00 20:45 0.75 CIRC_ MUD_ AF Mix and pump 30bb1 spacer pill ahead then follow with new 9.1 ppg Flo-Pro mud. Displace spacer to surface. 20:45 21:30 0.75 TEST_ LOT_ AF Shut-in well with annular. Using rig pump perform FIT LOT wi mud. Leak-off seen at 8 psi. serve or min pressure down to 720psi. i Repeat test with pipe rams with same results. LOT= 17.6poa EMW (after 10min stabilized to 16.3 www.peloton.com Page 4/19 Report Printed: 9/11/2008 M~'srdtort '~ Operations Summary Report. ~ xtnaa~xon ®OIICOmperly Well Name: GRASSIM OSKOLKOFF www.peloton.com Page 5/19 Report Printed: 9/11/2008 - Ops Trouble ------------- -- Start Time End Time Dur (hrs) Ops Code Activi Cale Status Code Comment 21:30 06:00 8.50 DRILL_ ROT_ AF Directionally drill ahead with tangent section fl 2285'. Both crews made Floor Valve drill. 585gpm 1350psi W06= 10-14k ROP= 200-230'/hr AST= 1 hr ART= 4hrs Daily Operations Report Date: 1/22/2007 Job Cate o DRILLING 24 Hr Summary Drill 3019'-3761'. Circ. Wiper Trip 3761'-2250'. Service Rig. Continue drilling 3761' - 4835'. ----- 4ps _ Trouble - - Start Time End Tme Dur (hrs) Ops Code Activity Code Status Cale Comment 06:00 13:30 7.50 DRILL_ ROT_ AF Continue drilling ahead f/ 3019'-3761' up Wt.= 73 Dn. Wt=52 Rt Wt.=62 Tq = 7-9 Art=3.7 Ast.=.5 No Gain/ Loss. 13:30 14:00 0.50 CIRC_ MUD_ AF Circ. B/U condition hole for wiper trip. 14:00 16:30 2.50 TRIP_ WIPR AF Poh Wiper trip f- 3781'- 2250' ,Wash and clean up tight hole at 3300', 2940' And 2845' 16:30 17:00 0.50 SERVIC RIG_ AF Service Rig 17:00 17:30 0.50 REPAIR RIG_ TA MSPW Replace Turbocharger #2 carrier motor 17:30 18:30 1.00 TRIP_ WIPR AF TIH wiper trip 2250'-3761' No gain/loss. hole slick, no fill on bottom. 18:30 19:00 0.50 CIRC_ MUD_ AF CBU make connection and survey. Pump hi-vis sweep. 19:00 00:00 5.00 DRILL_ ROT_ AF Continue directionally drilling ahead f/ 3761' to 4265'. Of= 565gpm ,Qp= 1600psi, MW= 9.5ppg Torq off-btm 4k on btm 5k, RPM= 85/190 W06= 5-6k, upwt= 77k, dwn wt= 53k, rot wt= 60k Have turned on MI Swaco's solids control van. 00:00 04:00 4.00 DRILL_ ROT_ AF Continue directionally drilling ahead f/ 4265' to 4650'. Of= 580gpm, Qp= 1742 MW= 9.6 Tq on btm= 5k RPM= 85/190 Pumped 30 bbl hi vis sweep at 4265' and 4650'. Brought up large amount of cuttings and cowpatty size clays. 04:00 06:00 2.00 DRILL_ ROT_ AF Continue directionally drilling ahead f/ 4650' to 4835'. Qf= 594, Op= 1755 MW 9.5+ Tq btm 6-7k Last 24hrs ART= 9.6 AST= 1.1 Report Date: 1/23/2007 Job Cate o DRILLING 24 Hr Summary Drill 4835-5216. Circ. Wiper Trip 5216'-3564'- 5216'. Drill 5216' - 5995' Ops Trouble Start Time End Time Dur (hrs) Ops Code At~vity CodE Status Code Comment 06:00 11:00 5.00 DRILL_ SLID AF Continue drilling ahead f/ 4835' - 5216' Up wt=100 Dn Wt.= 65 Rt=75 Tq=5=7 Art =1.7 Ast= 1.1 Mw 9.5+ 11:00 12:00 1.00 CIRC_ MUD_ AF Circ B/U At 5216' For Wiper Trip 585gpm 300spm 1850psi. 12:00 16:00 4.00 TRIP_ WIPR AF Poh f-5216-3564' wiper trip.work through tight hole 4840',4810,4336'. Wash & Rotate At 4315' & 3805' Max over Pull 20- 30k 16:00 16:30 0.50 SERVIC RIG_ AF Service rig 16:30 17:00 0.50 TRIP_ WIPR AF Rih 3564-5216 Wiper trip. hole slick no gain /loss, or fill 17:00 00:00 7.00 DRILL_ SLID AF Drill f/ 5216' to 5594' Up wt= 110k Dwn wt= 65k Rot wt= 80k Trq= 9-12k ART= 2.5hrs AST= 1.5hrs MW= 9.5+ppg 00;00 06:00 6.00 DRILL_ SLID AF Drill f/ 5594' to 5998 Up wt= 115k Dwn wt= 70k Rot wt= 85 Trq= 6-10k ART 1.8 hrs AST= 1.6 hrs Report Date: 1/24/2007 Job Cate o DRI LLING 24 Hr Summary Drill 5998'-6736'. CBU Pump sweep. Wiper trip 6736' to 2265'-6736' - - -- - i--, - Ops Trouble 8tartTime End Time i, Dur (hrs) Ops Code Activity Code Status - Code Comment 06:00 20:30 14.50 DRILL_ SLID AF _ _ Drill f/ 5998' to 6736' Up wt= 130k Dwn wt= 80k Rot wt= 105 Trq= 9-10k ART= 4.1hrs AST= 4.8hrs 20:30 21:00 0.50 CIRC_ MUD_ AF CBU. Pump Hi-Vis sweep divert high solids returns to cuttings tank. 21:00 03:00 6.00 TRIP_ WIPR AF Wiper trip to surface csg shoe. Tight f/ 5756' - 5660', 5628' - 5550 03:00 04:00 1.00 SERVIC RIG_ AF Service rig 04:00 06:00 2.00 TRIP_ WIPR AF RIH wiper trip 2265'-6136' Hole Slick. No Gain/Loss Report Date: 1/25/2007 Job Cate o DRILLING 24 Hr Summary RIH to 6736'. Drill F/6736'-6744'. Circ. clean. POOH. UD BHA. PU logging tools. RIH. Circ. hi-vis pill around. Start logging operations. -- ry~ ~ Operations Summary Report ~ „~-' ®Qj~ny Well Name: GRASSIM OSKOLKOFF 5 '~ Ops Trouble .Start Time End Time Dur (hrg) -0ps Code Activity Code Status Code i CommenP 06:00 06:30 0.50 TRIP_ DP_ AF RIH to 6736' Wash f/ 6668' to 6736' (no fill). 06:30 06:45 0.25 DRILL_ ROT_ AF Drill F/6736' to 6744'. ART= 0.1hrs 06:45 09:00 2.25 CIRC_ MUD_ AF Circ. clean(pump hi-vis sweep, CBUx3, MW in/out 9.6ppg). Flow check(well static). 09:00 15:30 6.50 TRIP_ DP_ AF Pump dryjob. Drop 2 7/8"" drift. Blow down top drive. POOH. SLM no correction. Recover drift on top of jars. 15:30 17:30 2.00 TRIP_ BHA_ AF UD BHA. Clean rig floor. 17:30 21:30 4.00 PULD_ BHA_ AF PJSM. PU Precision/Weatherford Shuttle logging BHA and tools. 21:30 03:15 5.75 TRIP_ DP_ AF RIH. Drift w/ 2-7/8"" the 4 jts HWDP that were below jars and drift jars w/ 1.90"" drift. RIH with remaining DP. Stopped at several depths to pressure test.Tagged at 6739'. RU to circ to bottom. 03:15 05:15 2.00 CIRC_ MUD_ AF Circulate wash to bottom at 6744' wo problems. Circulate hi-vis pill to surface at 5.5bpm. Very little 'extra' cuttings seen. 05:15 06:00 0.75 SAFETY MTG_ AF PJSM review log speeds, setting slips. Setback 1 std LD single. Drop shuttle dart. Daily Operations Report Date: 1126/2007 Job Cate o DRILLING 24 Hr Summary POH logging w/ WE Quad combo shuttle. Change out to 7"" csg rams and test. RU to run csg. Run 7"" 26 #/ft L-80 casing. _ Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 LOG_ OH_ AF Pump down shuttle(positive indication of tool deployment). Pump dryjob. 06:30 13:30 7.00 LOG_ OH_ AF Log Weatherford Quad combo shuttle service (6697 to surface). 13:30 15:00 1.50 TRIP_ BHA_ AF PJSM JHA an ogging tools. 15:00 16:00 1.00 RUNPUL WBSH AF Pull wear bushing. Gauge run 7"" hanger assy. Check for landout and mark. UD 7"" hanger assy. 16:00 17:30 1.50 TEST_ BOPE AF Run test plug and test jnt. C/O 2 7/8"" X 5 1/2"" u er variable rams to 7"" rams. Test door seals against ago psi. 17:30 22:30 5.00 RURD_ CSG_ AF PJSM review plan forward to run csg. RU stabbing board, Weatherford tongs, adjust topdrive torque tube, swap to long bales. Bring csg accessories to floor. 22:30 22:45 0.25 SAFETY MTG_ AF PJSM discuss hazadous areas, ice build-up around pipe racks, proper use of tongs, positions of people and STOPing the job whenever needed. 22:45 00:00 1.25 RUN_ CSG_ AF PU 7"" 26# L-80 BTC shoe track. RU circulate and test floats. 00:00 00:15 0.25 SAFETY MTG_ AF Crew change. Hold PJSM with new crew review same topics as above while circ through shoe track. 00:15 04:45 4.50 RUN_ CSG_ AF Continue runnin 7"" 26# P110 and L-80 BTC intermediate casin to the surface csg shoe 265'. 04:45 06:00 1.25 RURD CSG_ AF RU fill-up tool and 350t elevators. _ Re ort Date: 1/27/2007 Job Cate o DRILLING 24 Hr Summary Run 7"" CSG to 6730'. Circ. CSG. Cement 7"" CSG. Install/test pack-off. RD csg running equip. RU and start LD 5"" DP. Start Time End Time -Dur (hrs) -0ps Code. Activity Code Ops Status Trouble Code Comment _ 06:00 12:00 6.00 RUN_ CSG_ AF Cont. running 7"" 26# P110 & L-80 BTC casing to 6730'. Land out on Vetco 7"" X 10 7/8"" hanger assy. 12:00 12:30 0.50 RURD_ CSG_ AF R/D Circ. tool and R/U BJ cement head. 12:30 14:30 2.00 CIRC_ MUD_ AF Circ. 7"" CSG(56PM 750psi). PJSM prior to cementing 7"" CSG. 14:30 15:30 1.00 PUMP_ CMT_ AF Pump 5bbls water ahead. Test cement lines to 3500psi. Mix and pump 30bbls 10.Oppg Spacer. Drop bottom plug. Mix and pump 258sxs Class""G"" cement w/20% MPA-1, 2%SMS, 1% CaCl2, .3% FL-52, .2% CD-32, .05% Static Free, 1 GPHS FP-6L to yield 114bb1s 12.5oop slurry. Tail in with 160sxs Class""G"" w/2%KCL, .6% FL-63, .5% EC-1, .3% CD-32, .1 % ASA-301, .1 % R-3, 1 GPHS FP-6L to yield 34bbls 15.8oag slurry. 15:30 16:30 1.00 PUMP_ CMT_ AF Drop top plug. Displace w/5bbls water from BJ. Switch to rig pumps and displace w/248bb1s 9.6ppg mud(avg dis. 6BPM) Bump plug w/1600psi, 1000psi over last displacement pressure. CIP@16:20hrs. 100% returns during cement job. 20bbls spacer to surface. Release pressure and check floats. 16:30 17:30 1.00 RURD_ CMT_ AF R/D BJ cement head. Flush and blowdown lines. 17:30 19:00 1.50 TEST_ WLHD AF Install 11" x 7" pack-off. Energize upper/lower'P' seals to 5000psi. Test between failed. www.peloton.com Page 6/19 Report Printed: 9/11/2008 ~ Operations Summary Report rturtaTxor ®OIICOy Well Name: GRASSIM OSKOLKOFF 5 Start Time ~ End Time Dur(hrs} OpsCode ----- Activity Code Ops Status ..Trouble Code -- Comment 19:00 21:30 2.50 TEST_ WLHD TA MSWH Pull pack-off and redress. Re-land pack-off and RILDS. Energize seals with 3000psi .Test to 5000psi for 10min. Test good. New seal design first time run. Pack-off tested fine in the shop but was not redressed for this installation. Another possible problem was the 2 steel split spacer rings (1 above/below each 'P' seal) had their'overlap' lined up rather than 90-180 deg out from each other. And 5k maybe too high a pressure to energize these seals. Vetcogrey will investigate further. 21:30 21:45 0.25 SAFETY MTG_ AF PJSM review THA/JSA for DP LD procedures and hazards ie. breakout tongs, open v-door, overhead loads. 21:45 00:00 2.25 PULD_ DP_ AF LD jars and 5"" HWDP. 00:00 00:15 0.25 SAFETY MTG_ AF Crew change PJSM review THA/JSA for LD DP review same topics. 00:15 06:00 5.75 PULD_ DP_ AF Continue to LD 5"" DP. Same time fill pits and start making new Flo-Pro mud. Chg out liners/swabs in pump #3 from 5"" to 4"" Daily Operations Report Date: 1/28/2007 Job Cate o DRILLING 24 Hr Summary Continue laying down 5"" drill pipe. Change out pipe rams. Test BOPE. Pick up 4"" drill pipe. Review plan for drilling production hole section with 7"" Reaming While Drilling assembly. -- Ops Trouble , Start Time End Time Dur hrs) Ops Cotle Activity Code Status Code Comment --- 06:00 09:00 3.00 PULD_ DP_ AF Continue UD 5"" DP. 09:00 12:00 3.00 RURD_ OTHR AF PJSM. C/O u er pipe rams from 7"" to 2 7/8""X5 1/2"" variable rams. C/O lower pipe rams rom to rams. 12:00 16:30 4.50 TEST_ BOPE AF PJSM. R/U test equipment. Test Upper variable rams, annular, blind rams, lower pipe rams, inner and outer kill line valves, check valve, inner choke line valve, choke HCR, upper and lower top drive valves,CMV1-12, TIW valve, and IBOP valve to 250/2500psi 5min Lower pipe rams failed first test, open rams doors and found junk in rams, retest OK. Perform Koomey performance test. Set wear bushing. Note: AOGCC waived witness of test. 16:30 17:30 1.00 TEST_ CSG_ AF Test CSG to 2500psi/30min. 17:30 23:00 5.50 PULD_ DP_ AF PJSM review hazards procedures for PU drillpipe. PU RIH w/ 120jts 4"" 14# S-135 HT38 drillpipe. 23:00 00:00 1.00 TRIP_ DP_ AF TOH standback 60stds DP 00:00 01:30 1.50 TRIP_ DP_ AF Crew change. PJSM continue TOH w/ DP 01:30 04:00 2.50 PULD_ BHA_ AF PJSM review plan forward for BHA. PU pilot bit, 7"" RWD, motor and MWD. Scribe and align toolfaces. Same time install 4"" swab/liners in pumps 1 & 2. 04:00 06:00 2.00 REPAIR RIG_ TA MSHS Elevators are slowly closing by themselves. Suspect a leaky continental valve. Find that and some loose wiring. Re ort Date: 1/29/2007 Job Cate o DRILLING 24 Hr Summary Complete making repairs to elevator controls. Pick up BHA and drill pipe. Drill shoe track. LOT. Displace old mud to new Flow-Pro. Drill ahead to 6890'. Ops Trouble Start Time End Time Dur hrs Ops Code Activit Code ' Status Code _ Comment 06:00 11:30 5.50 REPAIR RIG_ TA MSHS Cont. making repairs to DP elevator controls. 11:30 12:30 1.00 PULD_ BHA_ AF P/U 4"" HWDP. 12:30 19:30 7.00 PULD_ BHA_ AF P/U DP. Tagged TOC at 6655'. 19:30 22:00 2.50 DRILL_ CMT_ AF Break circulation. Drilling cement and float equiment with old 9.7+ ppg mud circulating through isolated pit #4. Of= 245gpm Op= 1450psi rotary= 40 wob= 2-4k Top/bottom plugs gave a little trouble wedging around RWD but easy to clear. Drilled good hard cement. Drilling float equipment not a problem. Cleaned out rathole to 6744'. 22:00 22:30 0.50 DRILL_ ROT_ AF Drill new formation to 6764'. ART .40 hrs 22:30 23:00 0.50 CIRC_ MUD_ AF CBU 23:00 00:00 1.00 TEST_ LOT_ AF Shut pipe rams. Line-up to pump down DP and annulus. Perform LOT using 9.8ppg mud. Formation broke down at 18.4ppq EMW. Stabilized after 6min to 16.1 EMW and held for another 4min. Bleed off pressure and blowdown lines. www.peloton.com Page 7/19 Report Printed: 9/11/2008 `` ~~pn Operations Summary Report ,~„~~,~ ®Qji~y Well Name: GRASSIM OSKOLKOFF 5 Ops Trouble Start Time End Time Dur hrs) Ops Code Activi Code Status Code Comment 00:00 00:15 0.25 SAFETY DRIL AF ___ New crews tonight. Reviewed plan forward and past well history. 00:15 01:45 1.50 DRILL_ ROT_ AF Drill ahead slowly f/ 6764' to 6792' and same time displace old 9.8ppg mud with 30bb1 hi-vis spacer then to new 9.1 ppg Flo-Pro 01:45 02:45 1.00 DRILL_ SLID TA MDMW Slide to 6796' then had problems with slow MWD acquisition of toolfaces. Cycled pumps a few times problem solved. 02:45 06:00 3.25 DRILL_ ROT_ AF Continue drilling ahead f/ 6796' to 6890'. Op= 260gpm ART= 1.40 AST= 1.60 Slide ROP=14Ft/hr Rot ROP=58Ft/hr. Daily Operations Re ort Date: 1/30/2007 Job Cate o DRILLING 24 Hr Summary Drilled f/ 6890' to 7568'. -- Ops Trouble ~, Start Time End Time Dur (hrs) Ops Coda Activity Code Status ' Code Comment 06:00 06:00 24.00 DRILL_ ROT_ AF Dir drill and survey F/ 6890' to 7568'(increase Lubtex F/0-3°{° Increase EP Lube F/0-1%, Before Lubricants Up 120K, Dn 55K, Rot 75K, Tq 7K After Up100K, Dn65K, Rot 85K, Tq 6K). ART= 5.7 hrs AST= 10.5 hr Slide ROP=23.3ft/hr Rot ROP=76ft/hr. Report Date: 1/31/2007 Job Cate o DRI LLING 24 Hr Summary Drill F/7568' to 8430'. Start Time Ertl Time Dur (hrs) Ops Code j Activity Code Ops Status Trouble Code Comment 06:00 12:00 6.00 DRILL_ ROT_ AF Dir drill and survey F/7568' to 7799'. ART= 2.1 hrs AST= 2.31 hrs upwt= 110k dwn wt= 70k rot wt= 85k tq= 6-8K Rot Rop=77 ft/hr Slide ROP=26ft/hr 12:00 00:00 12.00 DRILL_ ROT_ AF Directionally drill f/ 7799' to 8240' . ART= 8hrs AST= 1.8hrs upwt= 130k dwnwt= 75k rotwt= 95k Tq 6-8k Rot ROP=52 fUhr Slide ROP=14ft/hr 00:00 06:00 6.00 DRILL_ ROT_ AF Directionally drill f/ 8240' to 8430' ART= 5.2 AST= Ohr Rot ROP=37ft/hr. Re ort Date: 2/1/2007 Job Cate o DRIL LING 24 Hr Summary Drill F/8430' to 8617'. Circ. clean. POOH to CSG shoe. __~_ Ops Trouble -- - - 'StartTime Ford Time Dur (hrs) i Ops Code Activity Cade Status Code Comment 06:00 17:00 11.00 DRILL_ ROT_ AF Dir drill and survey F/ 8430' to 8617'(Pump 30bb1 high vis sweep@8556' increased cuttings by50% ART=2.5 AST=6.4 Rot ROP=43ft/hr Slide ROP=13Ft/hr). 17:00 18:00 1.00 CIRC_ MUD_ AF Circ. B/U(CBUX1, 1800psi 265gpm). 18:00 21:00 3.00 TRIP_ DP_ AF Flow check(well static). Pump dryjob. POOH(hole in good condition). 21:00 22:00 1.00 SERVIC RIG_ AF Service rig. Tighten and Grease Top Drive Stuffing Box. 22:00 23:30 1.50 TRIP_ WIPR AF PJSM; RIH F/6700' to 8550' Ream to 8617'. 23:30 06:00 6.50 DRILL_ ROT_ AF Dir drill and survey F/ 8617' to $932'. ART= 5.5 AST=O ROP=34.9 Report Date: 2/2/2007 Job Cate o DRIL LING 24 Hr Summary Drill F/8932' to 9373'- POOH F/ Bit. - Ops " Trouble - Start Time End Time Dur (hrs) i Ops Code Activity Code Status Code Comment _ 06:00 12:00 6.00 DRILL_ ROT_ AF _ Dir drill and survey F/8932' to 9150'(ART=5.3hrs AST=Ohrs Rot ROP=41ft/hr Pump sweep @ 9121' 20% increase in cuttings Up wt=145K DN wt=85k Rot wt=110K Tq=6-9K). 12:00 21:30 9.50 DRILL_ ROT_ AF Dir. Drill and Surveys F/9150' to 9373' (ART= 12.8 AST= 0 )Up Wt. _ 165K Dn. Wt.= 95K Rot. Wt.=125K Max. Gas=188 Units No gains No losses. 21:30 22:30 1.00 CIRC_ MUD_ AF PJSM;Circ. Bottoms Up-Pump Dry Job. 22:30 06:00 7.50 TRIP DP_ AF PJSM; POOH For Bit Change and Motor(5min flocheck at shoe OK). _ Re ort Date: 2/3/2007 Job Cate o DRIL LING 24 Hr Summary L/D BHA and Bit. P/U new bit, motor, mwd. Incident investigation. RIH . Repair swivel packing and work on hydraulics on electric motor on carrier. Test MWD. RIH. Drill F/9373'-9415' ' Ops Trouble Start Time, End Time .Dur (hrs) Ops Code Activity Code ~ Status Code Comment 06:00 07:00 1.00 TRIP BHA AF _ L/D BHA and BIT. www.peloton.com Page 8/19 Report Printed: 9/11/2008 M Marathon Operations Summary Report rwnrwrnon ®oilCOmpsny Well Name: GRASSIM OSKOLKOFF 5 Start Time End Time Dur(hrs) Ops Code Ops Activity Code Status Trouble Code. Comment 07:00 07:30 0.50 TRIP_ BHA_ AF P/U new motor, new 4 3/4"" bit w/7""RWD, and MWD tool. 07:30 09:00 1.50 SAFETY MTG_ TA ESSI Stand fell from elevators(near miss). Shut down operation and investigate and solve problem. 09:00 09:30 0.50 TRIP_ BHA_ AF RIH w/BHA. 09:30 11:00 1.50 REPAIR RIG_ TA MSTD Attempt surface test of MWD. Swivel packing leaking. C/O swivel packing. 11:00 16:00 5.00 TRIP_ DP_ AF Test MWD RIH to CSG shoe. 16:00 16:30 0.50 CIRC_ MUD_ AF Fill Drill Pipe at 6700' 16:30 17:30 1.00 SLPCUT DLIN AF PJSM;SIip and Cut Drilling Line. Adjust Crown O Matic 17:30 18:30 1.00 REPAIR RIG_ TA MSPW Remove Hyd. Pump from Elec. Motor on Carrier 18:30 19:00 0.50 REPAIR RIG_ TA MSPW Trouble Shoot Hyd. on Carrier #2 19:00 19:30 0.50 SERVIC RIG_ AF Service Rig and Equip.Work on Manrider Equip 19:30 22:00 2.50 TRIP_ DP_ AF PJSM;RIH W/ Drill Pipe F/ 6700' to 9270' 22:00 23:00 1.00 REAM_ OH_ AF Wash and Ream Open Hole F/9270' to 9373'-No Fill 23:00 06:00 7.00 DRILL_ ROT_ AF Drill Rotate Slide F/9373' to 9415' AST=4.2 ART=.3 Up Wt.=160K Dn. Wt.=80K Rt. Wt.=125K No Gain No Loss Trip gas =535 Units Bottoms Up Daily Operations Re ort Date: 2/4/2007 Job Cate o DRILLING 24 Hr Summary Drill F/9415' to 9491'. Circ. and repair hydraulics Drill F/9491' to 10058' Start Time End Time Dur (hrs) Ops Code Activity Code i Ops Status Troutile Code - Comment 06:00 09:30 3.50 DRILL_ ROT_ AF Dir drill and survey F/9415' to 9491'.Art= 2.4 Ast.=1.2 Up. Wt.=165K Dn. Wt.=85K Rot wt.=110K No Gains No Losses 09:30 10:30 1.00 REPAIR RIG_ TA MSPW Circ. 102GPM 750psi while repair rig hydraulics system 10:30 06:00 19.50 DRILL_ ROT_ AF Dir drill and survey F/9491' to 10058' Art=13.3 Ast= 0 Up Wt.= 170K Dn. Wt.=90K Rot. wt.=120K No Gains No Losses Max. Gas=128 Units Re ort Date: 2/5/2007 Job Cate o DRIL LING 24 Hr Summary Drill F/10,058' to 10,384'. Circ. clean.Wiper Trip.POOH for Logs - Start Time - End Time Dur (hrs) Ops Code Activity Code Ops ' Status Trouble Code - Comment 06:00 12:00 6.00 DRILL_ ROT_ AF Dir drill and survey F/10,058' to 10,225'(ART=5.4hrs AST=Ohrs) Up 170K DN 90K ROT 120K TQ 7-9K 12:00 17:30 5.50 DRILL_ ROT_ AF it drill and surve F/1 = _ Up Wt.=175K Dn Wt=100K Rot Wt=128K Tq.=8-9K 17:30 19:30 2.00 CIRC_ MUD_ AF Pump 30bb1 hi-vis sweep and circ. clean. 19:30 20:00 0.50 SAFETY MTG_ AF PJSM; Monitor Hole-Pump Dry Job 20:00 21:30 1.50 TRIP_ WIPR AF POOH F/10384' to 9114' and RIH to 10384' TD 21:30 23:00 1.50 CIRC_ MUD_ AF Circ. Hole Clean and Condition Mud for Logs-Monitor WeII,Static No Gains No Losses 23:00 06:00 7.00 TRIP_ DP_ AF PJSM; POOH F/ Logs 10384' TD SLM out of Hole Report Date: 2I6/2007 Job Cate o DRIL LING 24 Hr Summary POOH. UD BHA. R/U logging tools. RIH w/logs. Log F/8665' to 6730'(bridge at 8665'). R/D E/L logs. P/U and run logs with shuttle. Start Time End Time Dur (hrs) j ! Ops Code Activity Code Ops ~tus Trouble Code- Comment 06:00 07:30 1.50 TRIP_ DP_ AF _-- Cont. POOH w/DP(SLM, no correction). 07:30 09:00 1.50 TRIP_ BHA_ AF PJSM prior to UD BHA. L/D BHA and bit. 09:00 10:30 1.50 RURD_ ELEC AF PJSM prior to R/U Weatherford logging services. R/U Logging tools on E/L. 10:30 13:30 3.00 RUNPUL ELEC AF RIH W/Weatherford Quad combo. Tagged bridge @ 8665' -attempt to work through bridge, could not pass. 13:30 16:30 3.00 LOG_ OH_ AF Run Quad combo F/8665' to 6730'. POOH w/logs. 16:30 17:00 0.50 PULD_ LOG_ AF UD E/L tools and equipment. 17:00 20:30 3.50 PULD_ BHA_ TA NDHI PJSM prior to P/U BHA. P/U Weatherford shuttle BHA w/5 13/16 reamer shoe. ~ 20:30 03:30 7.00 TRIP_ EOIP TA NDHI PJSM; RIH W/ Weatherford Logs in Shuttle Tagged Bridge and Reamed at 9712' and 10218' 03:30 06:00 2.50 CIRC MUD TA NDHI Tag Bottom at 10384' Work Pipe Circ. Condition mud www.peloton.com Page 9/19 Report Printed: 9/11/2008 ~ ~ Operations Summary Report ,~„~,r„oN ®Qj~(,py Well Name: GRASSIM OSKOLKOFF 5 Daily Operations Report Date: 217/2007 Job Cate o DRILLING 24 Hr Summary Pump messenger down. POOH wet. Strip Out Logging Tools.Ck. Tools. Pick-up Logging Tools And Run Hole Start Time- End Time ~ Dur (hrs) ~ pps Code Activity Code ~ S tus TCodee Comment ~ 06:00 06:30 0.50 LOG_ OH_ TA NDHI Pum Weatherford messen er down. Did not eta ositive indication that tool de to ed. ull up and try to release tool - no positive indication. 06:30 13:00 6.50 LOG_ OH_ TA MDLG POOH logging the Quad-combo on shuttle -pulling wet pipe. 13:00 13:30 0.50 TRIP_ DP_ TA MDLG PJSM; POOH w/ Shuttle Drop Rabbit on Wire @ Std. # 68 - 5147' 13:30 18:30 5.00 TRIP_ BHA_ TA MDLG Continue to POOH W/ BHA Stand Back HWDP Found. Logging Tool 95' From Bottom of BHA 18:30 19:00 0.50 TRIP_ EOIP TA MDLG Make Plate to Lay Down Logging Tools 19:00 23:30 4.50 PULD_ LOG_ TA MDLG Stripping Logging tools Out Of 3 1/2 Drill Pipe. Bottom 12' of Logging Tools Stuck in Non Mag Stablizer 23:30 01:30 2.00 PULD_ LOG_ TA MDLG Get Logging Tools Ready to Run In Hole-Clean Rig Floor and Blow Down Mud Lines 01:30 03:30 2.00 PULD_ LOG_ TA MDLG PJSM; Pick-up Shuttle and Quad Combo Logging Tools Re Measure And Drift Tools. 03:30 06:00 2.50 TRIP_ DP_ TA MDLG Trip in Hole with Shuttle run #3 -Quad Combo Logs Flow Check Tools at 1040' Re ort Date: 2/8/2007 Job Cate o DRIL LING 24 Hr Summary RIH W/ Shuttle-Circ.-@10384'-Log Out Of Hole-Run Wireline Logs Start Time ~ End Time Dur (hrs) Ops Code Activity Code Ops Status Trouble ., -- Code Comment 06:00 10:00 4.00 TRIP_ DP_ TA MDLG Cont. rib w/ shuttle run # 3 Flow ck tools at 4069', 7051', 9990, Tag Bridge at 10300' , circ and clean up. 10:00 12:30 2.50 CIRC_ MUD_ TA MDLG Circ. And Condt. Mud Circ b/u for gas. max gas 450units 12:30 13:00 0.50 LOG_ OH_ TA MDLG Pull up to 10240' Drop messenger to deploy logging tools 13:00 14:00 1.00 LOG_ OH_ TA MDLG P m Messen er Dart to De to Lo in Tool F-10243' to 10344' 14:00 18:30 4.50 LOG_ OH_ TA MDLG Lo Shuttle F-10344' to 5874' at 2 mins. er std. 18:30 22:30 4.00 LOG_ OH_ TA MDLG Continue Pulling Logging Tool at 1 min. per std. to BHA 22:30 01:00 2.50 PULD_ LOG_ TA MDLG PJSM; Stand Back Hvy Wall and Lay Down 3 1/2 Drill Pipe Shuttle And Logging Tools 01:00 02:30 1.50 RURD_ ELEC AF PJSM;Rig-up Wireline-Pick-up and Test MFT Tools 02:30 04:00 1.50 RUNPUL ELEC AF Run in Hole With MFT Logging Tool to 7"" Csg. Shoe 04:00 06:00 2.00 WAITON ORDR AF Wait on Logging Data at 7"" Csg. Shoe Re ort Date: 2/9/2007 Job Cate o DRIL LING 24 Hr Summary Run MFt logs. R/D logging tools.move to Completion @ 1630hrs --- Start lime ~ End Time - , Dur (hrs). Ops Code Ops Activity Code Status: Trouble Code ., Comment 06:00 08:30 2.50 WAITON ORDR AF Cont wait on pick points for MFT logging .Monitor well with flow to trip tank. Well Static no gain/ loss. 08:30 16:00 7.50 LOG OH AF Run mft to in suite as er M _ _ 8370' no go. Run MFT at. 6800' to 7784' 16:00 16:30 0.50 RURD_ ELEC AF R/D Weathetord/ Precision logging tools. Move to Completion Phase 1630hrs 2-8-07 Report Date: 2l9/2007 Job Cate o COM PLETION 24 Hr Summary Work on Rig Hyd.,Make-up BHA RIH, Cut drlg Line,RlH,Circ. Hi-Visc. Pill -POOH - Start Time I End Time Dur (hrs) ' Ops Code Activity Coda Ops Status Trouble`; Coda _ Comment 16:30 17:30 1.00 REPAIR RIG_ TA MSPW Work On Hyd. on Rig PJSM; Fab Carrier Fioor F/ Plumbing New Hyd. Pump -Fix Leak on #1 Dennision Pump 17:30 18:00 0.50 PULD_ BHA_ AF PJSM;Make-up Bit and Bottom hole Assy. 18:00 21:30 3.50 TRIP_ DP_ AF RIH With 4' Drill Pipe -Fill Pipe At, 3385' and 6700' 21:30 22:30 1.00 SLPCUT DLIN AF PJSM; Hang Blocks and Slip Drilling Line F/21 Wraps To 26 Wraps 22:30 01:00 2.50 TRIP_ DP_ AF Continue In Hole F/6700' Tag Bridges at 8455', 8488', 10225', 10350', and Wash to10384' With 6' Fill 01:00 04:30 3.50 CIRC_ MUD_ AF Circ. Condition Mud-Pump High Visc Red Dye Pill Sweep- Check for Flow. Pump Weight Pill( High Visc Pill Came Back 38 Bbls. Over Calculated) 04:30 06:00 1.50 TRIP DP AF Drop Rabbit and POOH www.peloton.com Page 10/19 Report Printed: 9/11/2008 ', M M ~ Operations Summary Report ~ ,Y,n,~,,,oN ®Qj~ny Well Name: GRASSIM OSKOLKOFF Daily Operations Re ort Date: 2/10/2007 Job Cate o COMPLETION 24 Hr Summary POH 9000' UD D.P. 3370' And Bha. Test BOP. R/U Csg Tools. Repair Power Pack. Run 92 jts 4 1/2"" 12.6 #/ft Hydril 563 L-80 liner. Cement stage tool installed between joints 44 and 45 designed for 8545'. -- ---- Start Time End Time Dur (hrs) Ops Code Activity Code Ops Status Trouble Code.. Comment 06:00 10:30 4.50 TRIP_ DP_ AF Cont. poh-9000'-3370' No gain/loss hole slick 10:30 14:00 3.50 PULD_ DP_ AF PJSM; UD 4' drillpipe,hwdp and bha f-3370 14:00 16:30 2.50 TEST_ ROPE AF M/U test joint pull wear bushing, set test plug, test varable ram w/ 4 1/2 landing joint 250/2500. Test Good. Set wear bushing r/d test jt. Note Normal BOP test waved by Jim Regg AOGCC 16:30 19:30 3.00 CHANGE EQiP AF PJSM; C/O bails, elevators And csg. tools 19:30 21:00 1.50 REPAIR EQIP TA MSTB Troubleshoot and repair Weatherford power unit dump valve. 21:00 05:00 8.00 RUN_ CSG_ AF PJSM; Run 92'ts 3844.63' of 4 1/2 12.6# L-80 563 h dril Liner. Install Cement stage tool point a een ~ an 544.79') M/U Shoe track and test floats. Floats Held. 05:00 06:00 1.00 CHANGE EQIP AF PJSM; C/O bails and Csg tools to continue running 4 1/2 Liner on Drillpipr Report Date: 2111/2007 Job Cate o : COMPLETION 24 Hr Summary R/D Csg. Tools. M/U bot hanger. Circ. Cont. Run 4 1/2 liner On drillpipe. 6655'- 9520' Circ B/U. Rlh to 10366'. Circ. hole packing off. hanger set prematurley. Poh. w/ liner on dp 10331-3879. UD Hanger. R/U Csg Tools to pull 4 1/2 liner & UD Start Time End Time Dur (hrs) Ops Code Ops Activity Code Status Trouble Cade Comment __ 06:00 07:00 1.00 RURD ~ CSG_ AF Complete R/D of csg tools elevators and bails. 07:00 08:30 1.50 PULD EQIP AF P/U M/U baker 80ksi Hyd. Flex lock Hanger 08:30 10:30 2.00 RUN_ CSG_ AF RIH W- 4 1/2 liner assy. on 4"" Drillpipe to 6655' 10:30 11:00 0.50 RURD_ CMT_ AF P/U Cmt Head And Torque Up. 11:00 12:00 1.00 CIRC_ MUD_ AF Circ. Liner And Csg. Volume At 6655' W/ 650psi 195gpm. Hold PTSM; For Crew Change 12:00 15:00 3.00 RUN_ CSG_ AF Cont. Run 4 1/2 Liner On Drillpipe F- 6655' Up Wt 80k Dn. wt. 55k Rt. wt. 70 20 rpm= 4300fp. Tq. At 6655' To 10305'-Break Circ. At 7343'-Wash thru Bridge at 7690'-7723' -Break Circ. at 8919'-9520' 15:00 16:30 1.50 CIRC MUD_ AF Circ. Bottoms Up at 9520' Circ 4bbls Min 675psi 16:30 17:00 0.50 _ RUN_ CSG_ AF RIH with csg. F-9520'-10305' 17:00 17:30 0.50 WASH FILL AF Break Circ. and Wash F-10305'-10366' 17:30 18:00 0.50 WORK_ PIPE TA NDHI Working Liner to Bottom Packing off Around Liner. Circ. Rates From zero Flow to 40 % at 2-4 Bbls min. Liner Han er set Premature) A 1 1' 18:00 22:00 4.00 CIRC_ CFLD TA NDHI Try to Est. Circ. Rate for Cement Job. Still Packin Off. No Consistent ae 22:00 22:30 0.50 RUN, CSG_ TA NDHI Work Csg. up Hole F-10331'-10305' Still Not Able To Get Consistent Circ. 22:30 00:00 1.50 TRIP_ TOOL TA NDHI PJSM;Mix and Pump Dry Job-Blow Down Top Drive And Mud lines 00:00 01:00 1.00 TRIP DP TA NDHI POH W/ Liner On Drillpipe F- 10305 No Excess Overo~ll-No Gains Na_ _ losses 01:00 01:30 0.50 REPAIR RIG_ TA MSPW Electrical power failure. Elect J box behind mast on Rig Floor shorted out 01:30 05:30 4.00 TRIP_ DP_ TA NDHI Cont Pooh w/ liner on drillpipe F-10150' -3879' No Gain Loss Liner pulled slick no over pulls 05:30 06:00 0.50 TRIP_ EQIP TA NDHI Lay-Down 7"" X 5"" Liner Hanger -Confirmed Han er Was set Report Date: 2/12/2007 Job Cate o COMPLETION 24 Hr Summary R/U Csg Tools. POH UD 4 1/2 Liner 3867- sfs. R/D csg. tools. M/U 6 1/8 bha. Rih. P/U 67jts 4"" D.P. Circ 6730' Rih. Circ Wash F- 10300'- Start Time . End Time __- - - ~ i i Dur (hrs) Ops Code Ops Activity Code Status Trouble Code - --- - Comment 06:00 08:00 2.00 RURD_ CSG_ TA NDHI C/O Bails Elevators. R/U Weatherford Csg. Tools To Pull & UD 4 1/2 lines , 08:00 15:00 7.00 TRIP_ EQIP TA NDHI POH f- 3867' & UD 4 1/2 liner. Stop at 1841' Heat and Remove Baker Locked D/V Stage Tool. And Shoe Track. Total Of 92jts UD. No Gain/ Loss. Note All Cnts And Stop Rings Recovered. 15:00 17:00 2.00 RURD_ CSG_ TA NDHI R/D Weatherford Csg. Tools. C/O Bails Elevators 17:00 20:00 3.00 PULD BHA TA NDHI PJSM; Measure and Caliper BHA and Run in Hole www.peloton.com Page 11/19 Report Printed: 9/11/2008 _, ~ ~ Operations Summary Report ,'-' ®pjjny Well Name: GRA-SSIM OSKOLKOFF ----- - - Stag Time ~ Entl Time Dur (hrs) Ops Code Activity Code Ops ..Status Trouble Code Comment 20:00 03:00 7.00 TRIP_ DP_ TA NDHI RIH W/ 4"" Drilf Pipe to 6730'-Pick-up 100 jts.Off Pipe Racks 03:00 04:00 1.00 CIRC_ MUD_ TA NDHI Circ. at Csg. 250 Bbls. - 925 psi-260 gals. Min. Bottoms Up W/ 564 Units Gas-No Gains No Losses 04:00 06:00 2.00 TRIP_ WIPR TA NDHI Continue RIH W/ 4"" Drill Pipe f- 6730' 10060' Work Through Tight Spot At 10030'. Wash F -10300' At 0600hrs. No Gain /Loss. Note Rih At Reduced Rate. Daily Operations Re ort Date: 2/13/2007 Job Cate o COMPLETION 24 Hr Summary Wash f-10300'-10384',Circ. Clean Cond. Hole,Wiper Trip,Circ.,Spot Hi-Visc. 15.5# Pill ,POOH - Start Time Fsd Time Dur (hrs) Ops Code Activity Code Ops Status Trouble Code Comment 06:00 12:30 6.50 CIRC MUD TA NDHI _ _ Wash F- 10300-10384'. Cirs B/U. Hw Return of sluffing coals over shakers. _ _ Cont Circ. clean up hole. Max gas 600 units on b/u. Circ 264spm 330gpm 1705psi. Pump Sweep, cuttings returned hvy coals sand .Cont. Circ inc mud wt to 9.5 condition mud add 3.5 ppb asphasol. Sweep returned 1000stk/ 32bbls past caculated hole volume. 12:30 13:00 0.50 MIX PILL TA NDHI Monitor well. pump dry job 13:00 15:30 2.50 TRIP_ WIPR TA NDHI POH wiper trip f- 10384'-6730' No excessive over pulls. No Gain Loss. Hole slick 15:30 19:00 3.50 SERVIC RIG_ TA NDHI Service rig.Monitor Well and Allow to Stabilize 19:00 21:30 2.50 TRIP_ WIPR TA NDHI PJSM; RIH F-6707'-10119' Pump and Rotate thru Bridge at 10119'-10125'. Continue RIH to 10384' No Fill ,No Gains No Losses 21:30 00:00 2.50 CIRC_ MUD_ , TA NDHI Circ. Hole Clean ,H .Coals and Sand Circ. Bottoms U Without Rotatio and Working Pipe Iowly,Pump and Spot 13 1/2 Bbl. Hi-Visc.11.5# Balanced Pill on Bottom. Max Gas 57 Units 00:00 06:00 6.00 TRIP_ WIPR TA NDHI POOH F/ 10384' to Run 41/2"" Liner. Depth at Report Time 2692' Report Date: 2/1412007 Job Cate o COMPLETION 24 Hr Summary POH. UD BHA. R/U Csg Tools. Run 85jts 4 1/2 12.60 # Hyd. 563 -Csg. To 3557.68 Run 4 1/2 liner on DP to10100'. Circ. Start Time End Time Dur; hrs) Ops Code Ops Activity Code Status Trouble Code Comment 06:00 07:30 1.50 TRIP_ DP TA NDHI Cont poh to 560' No Gain Loss 07:30 09:00 1.50 TRIP_ BHA_ TA NDHI POH UD hwdp,jars drill collars and stablizers. break out bit 09:00 11:30 2.50 RURD_ CSG_ TA NDHI C/O bails, elevators. and R/U Weatherford Csg. Tools 11:30 12:30 1.00 RUN_ CSG_ TA NDHI 4 1/2 1 L-8 shoe track float shoe 2jts. F/C 1jt. landing collar. Ck. Floats. Note: Baker locked all connections in shoe track 12:30 17:00 4.50 RUN_ CSG_ TA NDHI Con't to P/U and run 4 1/2"" csg. install Stage Collar on jt # 40 Run a total of 85jts and 2 pups (marker Jts.) = 3557.68 17:00 18:30 1.50 RURD_ CSG_ TA NDHI C/O Bails eleavtors R/D Csg tools 18:30 19:30 1.00 PULD_ EOIP TA NDHI PJSM;Pick-up 5"" X 7"" Flexlock Hanger 19:30 20:00 0.50 CIRC_ MUD_ TA NDHI Circ. While Rigging Down Weatherford Fill Liner 590 PSI -167 GPM-134SPM 20:00 22:30 2.50 RUN_ CSG_ TA NDHI Cont. to Run In Hole With 4 1/2 liner on 4"" Drill Pipe F-3580'-6680' 22:30 23:30 1.00 CIRC_ MUD_ TA NDHI Circ. Bottoms Up At Shoe and Get Torque and Drag Perameters. Up wt= 76 Dn. Wt.=52k Rt. Wt.= 62k T0= 2.5k Pump 1.5bpm =260psi 23:30 02:30 3.00 RUN_ CSG_ TA NDHI Continue to Run In Hole With 4 1/2 liner on Drillpipe f- 6680' to 10100' No i gains or loss. hole slick. 02:30 04:00 1.50 CIRC_ MUD_ TA NDHI Circ Recp Liner at 10100' Circ2.5bb1. min 565psi. no pack offs at this rate. ote; na e o ro a e mer 04:00 04:30 0.50 RURD_ CMT_ AF PJSM; R/U Baker Cement head .Begin Batch Mixing Of Cement 04:30 05:00 0.50 CIRC_ MUD_ AF Cont Batch Mix Cement. Circ W/ Rig Pumps 05:00 06:00 1.00 PUMP CMT_ AF Pomp 3 bbls H2o Test Lines to 5000psi. Pump 20 bbls 10ppg mcs spacer. _ Report Date: 2115/2007 Job Cate o COMPLETION 24 Hr Summary Cement 1st stage 4 1/2 liner Circ/WOC. Cement 2nd Stage 4 1/2 liner. Circ. POH lay down drillpipe. shoe set at 10099.43' Stage Collar At 8419.91'Liner top at 6530.54' RIH w/mill to cleanout PBR. www.peloton.com Page 12119 Report Printed: 9/11/2008 -~ MerAtttort ~ Operations Summary Report ~ ,~„~ ®a~nY Well Name: GRASSIM OSKOLKOFF 5 Ops Trouble i Start Time End Time Dur (hrs} Ops Code Activity Code Status Code Comment .06:00 07:00 1.00 PUMP_ CMT_ AF Cont. 1st Stage cement job. Pump 77bbls (145sx) batch mixed 10.5ppg Class G Cement +22%LW-7-6+15%BA-90+1.5FL-52+ 1 %CD-32+.5%A-2+1 %R-3+ .05 Static Free. Close valve to drillpipe pump 5bbls H2o. To wash lines. Close Valve. Drop plug pump30 bbls kcl and 93 bbls 9.5 mud (total disp 125 bbls) Disp at 2.4bb1 min slow rate to 1.5 bbl/min for plug to pass stage collar at 65 bbls. Bump Plug With 545psi Inc to 1200psi. Bleed Off, Floats held. Cement in place at 0700hrs 2-14-07. 100% returns. Pressure Up To release hanger to 2000psi Slack off to 62k. Hanger Not Set. P/U 5' Pressure up to 2400 psi. Set Down To 30k. Confirm hanger set @6530.54'. Pressure Up to 3000. psi to open Stage Collar, pressure dropped to 900psi and established Circ Through Stage Collar at 8419.91' Liner set at 10,099.43'. 07:00 09:00 2.00 CIRC_ MUD_ AF Circ through stage collar at 8419.91' 2.5bb1 min 950psi. Pressure inc 1300 slow pump rate to 1.5 bblmin 1200psi. Well packing off at 2.4bb1 min. Continue Circ Between 1.5 - 2.5 bblmin. At 5750stks. MCS spacer returned total of 20 bbls spacer and est 10 -15 bbls CementTo Surface.' 09:00 14:00 5.00 WAITON CMT_ AF Circ And WOC. Circ Through Stage Collar 8419.91' 1.5-3bbls min 1100- 1300psi Note at 1230hrs pump rate at 3bbls min 1050psi 14:00 15:00 1.00 RURD_ CMT_ AF R/D BOT Cmt Head. R/U BOT plug dropping/ cmt head. Batch mix Cement for 2nd stage 15:00 19:00 4.00 PUMP_ CMT_ AF Complete Batch Mixing Cmt to 10.5ppg. Pump 3bbls H2o Test lines 5k Pump 68.5bbls (132sx) Class G 10.5ppg cement+22%LW-7-6+ 15%BA90+1.5%FL-52+1%Cd-32+.5A-2+.05%Static Free+1gps P6LDrop 2 plugs pump 30 bbls KCL and 69.60bbls 9.5mud. Total displacement 99.60bbls. Pump at 2.4bbls min 750 -1100psi slow rate to 1.5bbls min after 66bbIs750psi to pass plugs through liner hanger. as plugs passed hanger psi increased to 1200psi increase rate to 2.4bbls min 1000-1200psi. Bump stage tool w 800psi increase to 1800psi. stage tool closed..lncrease psi to 2300 Hold For 5 min. Confirm stage tool closed. Bleed off pressure. no flow. switch to rig pump. pressure up to 500psi. Pull up out of liner hanger seal assy. Wash out of seal assy. pump at 240stks 335gpm 1200psi. Circ B/U . 20 bbls MCS spacer and 10 bbls cement est. Returned to surface. Cement in lace at 17 rs - - ° re urns. Note: left 1 bbl Cmt on top of Stage tool. 19;00 19:30 0.50 CIRC_ MUD_ AF R/D Cement head. Pump drillpipe wiper dart. Circ Drillpipe volume. Pump Dry job 19:30 21:30 2.00 TRIP_ DP_ AF POH W/ 4"" drill pipe from 6516' to 3332' 21:30 23:00 1.50 SLPCUT DLIN AF Slip Cut 146' drilling Line 23:00 02:30 3.50 TRIP_ DP_ AF Poh UD drillpipe F- 3332 Total of 106 jts UD 02:30 03:30 1.00 PULD_ BHA_ AF UD liner running tools. P/U polish bore cleanout assembly. 03:30 06:00 2.50 TRIP_ DP_ AF TIH with mill and 4"" DP from derrick. Daily Operations Re ort Date: 2/16/2007 Job Cate o COMPLETION 24 Hr Summary cleanout top of liner. RIH and set ZXP packer. At 6491.71'Test 7"" casing. LDDP Ops Trouble , Start Tlme I End Time Dur (hrs) -0ps Code Activity Cotle `Status Code Comment ---- 06:00 06:30 0.50 TRIP_ DP_ AF - Cont. RIH W/ Polish mill clean out assembly to top of liner At 6516'. 06:30 07:30 1.00 CLNOUT CSG_ AF Polish Tie ac sleeve W/ bot polish mill assy. At 6519' Circ B/U 07:30 11:30 4.00 TRIP_ DP_ AF POH w 4 "" drillpipe f-6516'. Lay down polish mill. Note: begin clean pits 11:30 12:00 0.50 PULD_ PKR_ AF PJSM; Pick up and make up BOT- ZXP Packer assy 12:00 16:30 4.50 RUNPUL PKR_ AF RIH W/ZXP acker on 4"" drill ipe to top of liner at 6519'. Up wt 98k dwn wt c. et down on top o finer with 40K. 16:30 17:30 1.00 SETREL PKR_ TA MDCE Dropped 1-7/16"" steel ball wait 1/2hr. Pressure up to set packer but only able to achieve 2500 psi then seeing returns. Need 4000psi to set. Possible bad seal on seat. www.peloton.com Page 13119 Report Printed: 9/11/2008 -- ~ Operations Summary Report ~ ,~~, ®Qj~ny Well Name: GRASSIM OSKOLKOFF - - --- Ops Trouble -- Start Time End Time Dur (hrs) Ops Code ..Activity Code Status. Code Comment -- -- 17:30 20:00 2.50 WAITON EOIP TA MDCE Packer has secondary 1.50"" seat above the lower 1"" seat but Baker didn't bring the required ball. Wait for 1.75"" ball. Tried once more and only able to reach 1500psi before seeing returns. 20:00 21:00 1.00 SETREL PKR_ AF Drop 1.75"" steel ball and wait 1/2hr. While waiting hold PJSM and discuss plan forward and review correct way to fill out vJSA's and importance to have discussion while holding the PJSM's. Pressure up on ball at 1/2bpm to 3600psi and then see a pressure drop-off that appears the ball/seat are leaking. Increase rate to 1bpm and packer set at 3800 si. PU to up wt plus 14' confirm pkr released.. Slack off and see s eer at surface. 21:00 21:30 0.50 TEST_ CSG_ AF Test 7"" annulus to 1500 si for 30min. Good test. 21:30 00:00 2.50 PULD_ DP_ AF PJSM reivew DP LD procedures. POH LDDP. 00:00 05:30 5.50 PULD_ DP_ AF Crew change. PJSM continue to LDDP 05:30 06:00 0.50 PULD_ BHA_ AF LD ZXP packer running tools. Clean floor. Daily Operations Re ort Date: 2117/2007 Job Cate o COMPLETION 24 Hr Summary Ran 4-1/2"" 12.6 #/ft IBT L-80 production tie-back tbg. Circ. Displace .Space out to 6489.15' N/D BOPE. Start Time ~, End Time Dur (hrs) Ops'Code Activity Code Ops Status Troutile Code --- Comment __ _ 06:00 06:30 0.50 CLEAN_ RIG_ AF Clean rig floor 06:30 07:00 0.50 RUNPUL WBSH AF R/U test joint pull wear bushing 07:00 09:30 2.50 RURD_ CSG_ AF R/D rig floor. spinners, tongs and drillpipe handling tools. C/O bails. R/U Weatherford tubing tongs and elevators 09:30 14:30 5.00 RUNPUL TBG_ AF M/U Bot seal assy. Run 4 1/2 12.60# IBT Tubin to 4080' 98jts 14:30 15:30 1.00 RURD_ ELEC AF Install chemical injection mandrel, R/U Pollard to run chem. injection 1/4 0.049 SS control line. M/U to Chem injection nipple and test to 2000psi. test good. hold 700psi on line 15:30 19:15 3.75 RUNPUL TBG_ AF Cont. run 4 1/2"" tubing with 1/4"" chem. injection line, placing 2 ss bands per joint to 6460'. 19:15 20:00 0.75 RUNPUL TBG_ AF MU TIW and circulation line on jt# 156. Pumping 1bpm 200psi RIH 38' and tag top of ZXP and see pressure increase. SD pump. MU jt# 157 and continue RIH wo pump and bottom out in PBR. Calculate spaceout pups. LD jts 157,156,155. 20:00 21:45 1.75 RUNPUL TBG_ AF MU spaceout pups, PU jt #155. (total 122 chemical line bands installed) MU tbg hanger and MU landing jt 16-1/2 turns. MU circulation line. 21:45 00:00 2.25 RUNPUL TBG_ AF Pumping 1bpm 200psi RIH 12' and tag top of ZXP to confirm correct spaceout. PU 3' to clear PBR. Displace tbg and annulus at 6.4bpm 500psi with 40 bbls water followed by 40 bbl ChemKlean spacer then 250 bbls 6% KCI water which included corrosion inhabiter. 00:00 01:15 1.25 SETREL LNR_ AF Weight check 80k up 45k dwn. Land tbg in wellhead. RILD$. Test hanger to 5000psi for 10min. Good test. 01:15 02:05 0.83 TEST_ TBG_ AF Pressure test tbg to 500 psi. Had several surface lumbin leaks. Good to 02:05 03:00 0.92 CLEAN_ RIG_ AF Flush lines and BOP stack with freshwater. RD Weatherford. 03:00 06:00 3.00 NUND BOPE AF PJSM. Install TWC. ND BOP stack and DSA. Re ort Date: 2/18/2007 Job Cate o COMPLETION 24 Hr Summary N/D bope. N/U & test tree. R/D GD-1 . Ops _ Trouble ~ Start Time End Time i Dur (hrs) Ops Code Activity Code .Status: Code Comment 06:00 06:30 0.50 NUND ROPE AF Complete N/D BOPE. 06:30 10:00 3.50 NUND TREE AF Install production tree. Test void to 2000/10min test tree to 5000/10min test good. Pull TWC install BPV. Freeze protect tree. 10:00 06:00 20.00 RURD_ RIG_ AF Ri down GD-1 re for m v (RD topdrive, changeout #1 Denison hyd motor in carrier. Swap to 5"" liners in all mud pumps and pickle same. Cleanout Hanson tank. RD all mud lines, shock hoses, rig floor, beaver slide, topdrive torque tube, etc.) Complete cleaning of pits Re ort Date: 2/19/2007 Job Cate o COMPLETION 24 Hr Summary Rig down GD-1 Prep for move to NS-3 Rig Released To NS-3 0600hrs 2-19-07 www.peloton.com Page 14/19 Report Printed: 9/11/2008 M Maratho~t ~ Operations Summary Report ~ ,Y,,,~,t„o„ ®i~l"1 Well Name: GRASSIM OSKOLKOFF 5 - - --- - - Ops Trouble ~ Start Time End Time Dur (hrs) OpaCode Activity Code Status Code ' Cornment 06:00 06:00 24.00 RURD_ RIG_ AF R/D GD-1. Blow down water & steam lines Pull electrical and service lines. R/D choke lines & dog house. scope down mast Remove gray iron. Crane down choke, dog houses&windwalls R/D back landing & stairs. Complete R/D GD-1. Rig Released 0600hrs 2-19-2007 to NS3 Daily Operations Re ort Date: 319/2007 Job Cate o COMPLETION 24 Hr Summary MIRU coil uni PT lubricator, and move water into supply tank. --_ Ops Trouble - - -- Start Time End Time Dur.{hrs) i Ops Code Activit Code - Status Code Comment ___ 07:30 09:00 1.50 SAFETY MTG_ AF Held PJSM, saftey meeting and discussed procedure. Uptained work permit and discussed environmental issues. Vetco pulled BPV. 09:00 12:30 3.50 RURD_ COIL AF BJ coil tech, spot up all equipment. Tanks set on liner. Moved 100 bbls fluid to supply tank. 12:30 16:30 4.00 RURD_ COIL AF MU BOP to top of tree. Ran hard lines, set gas buster and ran flow back iron to choke to gas buster. Function tested BOPS. 16:30 18:00 1.50 RURD_ COIL TA MDCT MU coil connector to 1 3/4"" coil. Pull test coil connector to 15, 000 lbs. Computer in unit lost mother board. Lay back equipment, BJ left lease. Report Date: 3/11/2007 Job Cate o COMPLETION 24 Hr Summary PT shell, conduct BOP test, and MU BHA to mill out ES plug at 8420' KBD. ~ Ops Trouble --- _- - Start Time ~ End Time Dur (hrs} Ops Code Activity Code ~ Status Code ' Comment 07:30 10:50 3.33 SAFETY MTG_ AF _ Held PJSM, saftey meeting and discussed procedure. Uptained work permit and discussed environmental issues. 10:50 11:10 0.33 RURD_ COIL AF Change out stripper on injector. 11:10 12:00 0.83 RURD_ COIL AF Load surface lines with fluid to do shell test and test BOP's. Fix surface pipe leaks. 12:00 13:00 1.00 RURD_ COIL AF PT surface lines low pressure test to 200 psig. Shell low 200 psig, high test to 4500 psig. Leak at surface, Fix leak. Retest, good shell test. Remove night cap. ~~ 13:00 13:30 0.50 RURD_ COIL AF Installed test bar, low 200 psig, high 4500 psig. Found leak in pump van. Shut in blow down. Fixed leak. 13:30 14:00 0.50 RURD_ COIL AF Test Tbg rams low at 200 psig, high at 4500 psig. Ground lines low to 2500 psig, high 6000 psig. BOP's tested. 14:00 15:20 1.33 RURD_ COIL AF Load coil with 50/50 Methanol. CT low 250 psig low pressure, CT high pressure test to 3000 psig. 15:20 17:00 1.67 RURD COIL AF Bled off fluid pump down, secured well head. BJ left location. _ Re ort Date: 3/12/2007 Job Cate o COMPLETION 24 Hr Summary MU BHA to mill out ES plug at 8420' KBD, PT shell open well. Ops Trouble Start Time Ertd Time Dur (hrs) Ops Code Ii Activity Code Status Code. Comment 07:00 09:00 2.00 SAFETY MTG_ AF Held PJSM, saftey meeting and discussed procedure. Uptained work permit and discussed environmental issues. 09:00 11:00 2.00 RURD_ COIL AF Startup all equipment. PU injector and add 16' lubricator to work motor and mill. Load surface lines with fluid to do shell test. 11;00 12:00 1.00 PULD_ BHA_ AF MU 1 3/4"" coil with Coil connedctor, 2 7/8"" DFCV, 2 7/8"" Boss, cir sub, Navidrill PDM and 3.83"" OD mill for BHA. MU to well. 12:00 13:00 1.00 TEST_ EOIP AF PT surface lines low pressure test to 200 psig. 13:00 13:10 0.17 WAITON WTHR TA WD_ Load pump skid with fluid to displace coil with KCL fluid. Frozen valve on supply tank. Thaw valve, displacement Methanol to Methanol tank. 13:10 13:15 0.08 CIRC_ CFLD AF Displace coil with 25 bbl 6% KCL, shell test to 1000 psig. Good test. Open to coil. 13:15 15:25 2.17 RUNPUL COIL AF RIH at 65 fpm, coil at 100 ft., start pump rate at 0.25 bpm. CT at 7043' CTM. Tagged ES valve at 8410.0' CTM 15:25 16:40 1.25 MILL_ PLUG AF Continue down hole with coil to 8410' CTM. Start pump rate to 1.9 BPM, Start milling on top of ES valve. Shut down pump, engine leaking oil, switch to other pump. 16:40 17:40 1.00 MILL_ PLUG AF Work mill down @ PIP 3300 psig, PIR= 1.9 BPM. Stalled motor. S/D pump, PU hole 10' ,start pump. RIH with coil to top of ES valve. Continue milling. www.peloton.com Page 15/19 Report Printed: 9/11/2008 Nlaraifton Operations Summary Report ira~anrxor ~Oi1COr1'1(~IYy Well Name: GRASSIM OSKOLKOFF 5 - __ - StartTime End Tim®: Dur (hrs) - Ops Code -- Activit Code Ops Status Trouble Code Comment 17:40 17:50 0.17 MILL_ PLUG AF Coil at 8406' CTM, work mill down @ PIP 3300 psig, PIR= 1.9 BPM. Stalled motor. S/D pump, PU hole 10' ,start pump. RIH with coil to top of ES valve. Continue milling. 17:50 19:25 1.58 MILL_ PLUG AF Continue working motor mill down through ES valve. Stalled motor PU and repeat shut down of pump to start up again. Work through valve milling below 8416.0' CTM 19:25 20:00 0.58 RUNPUL COIL AF Continue down hole to 9350' CTM. Shut down pump, block in real and drop ball to shift sub on motor. 20:00 20:30 0.50 CIRC_ CFLD AF Drop ball, pumped 27 bbls while continuing down well with coil. Ball at sub, pressure increased then went down. Increased PIR to 2.0 BPM. 20:30 21:25 0.92 RUNPUL COIL AF R!H with coil to 9956' CTM, tagged bottom. Parked coil 9956' CTM, pump bottoms up. POOH with coil 21:25 21:40 0.25 WORK_ COIL TA NDSP Coil at 8408' CTM. Coil would not move up or down. Made several a empts o or u s wou no move. 21:40 22:55 1.25 RUNPUL COIL AF Pull 39 000 Ibs on coil came free, POOH with coil. Dragging something up hole or mill stic ing on co ars w i e POOH . 22:55 23:30 0.58 CIRC_ CFLD AF Coil at 2500' cut PIR back to .8 BPM, displace coil with 50/50 Methanol. 23:30 01:40 2.17 PULD_ EOIP AF Continue out of hole with soul. Coil at surface, Lay down lubricator. Displace surface lines with Methanol. Vac truck pulled water off lines. 01:40 03:40 2.00 RURD_ COIL AF Break out Baker motor and mill, rig back injector. Clean up filter pot and area. BJ left lease. Daily Operations Report Date: 3/13/2007 Job Cate o COMPLETION 24 Hr Summary Run main CBL pass from 9950' - 6270'. Run repeat pass. Bond looks fairly good (all 10.5 PPG cement) and TOC is at packer. _ I Start Time End Time Dur (hrs) Ops Code Activity Code Ops - Status - Trouble Code Comment _ 10:00 10:30 0.50 SAFETY MTG_ AF Held safety meeting and discussed procedure. Issue Permit 10:30 11:00 0.50 RURD_ ELEC AF RU Eline unit and PU 3.75"" gauge ring. 11:00 12:30 1.50 LOG_ CSG_ AF MRIH 3.75"" GR. Worked through 6496' and tagged at 9955'. POH. 12:30 13:00 0.50 RURD_ ELEC AF LD GR and PU CBL tools. 13:00 13:45 0.75 RUNPUL ELEC AF RIH CBL. Unable to pass 2090'. POH. 13:45 14:05 0.33 RURD_ ELEC AF LD bottom centralizer and Stab on. 14:05 15:40 1.58 RUNPUL ELEC AF RIH CBL to 9950' 15:40 17:15 1.58 LOG_ CSG_ AF un main pass from 9950' - 6270'. Run repeat pass. 17:15 18:45 1.50 RUNPUL ELEC AF POH. 18:45 20:00 1.25 RURD_ ELEC AF RD and release Eline truck. Bond looks fairly good (all 10.5 PPG cement) and TOC is at packer. - Report Date: 5/23/2007 Job Cate o COMPLETION 24 Hr Summary MIRU liner on job site. Spot tanks, gas buster and choke skid. Haul fluids. Start Time ~ End Time Dur (hrs) Ops Catle Activity Code Ops Status Trouble Code Comment 08:00 08:30 0.50 SAFETY MTG_ AF Held safety meeting and discussed rig up plan. Issue Permit 08:30 11:00 2.50 MOB RIG_ AF MIRU felt and pit liner. 11:00 15:00 4.00 RURD_ COIL AF MIRU crane, flow back tank, and KCL tank. Install gas buster on flow back tank. Set choke skid. 15:00 15:30 0.50 RURD ELEC AF .Secure location for night. _ Report Date: 5/24/2007 Job Cate o COMPLETION 24 Hr Summary Spot coil tubing and N2 equipment. Install BOP on WH. RU 2"" hard lines. Test BOP's. ---- - Ops Trouble - - Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:00 07:30 0.50 SAFETY MTG_ AF Held safety meeting and discussed rig up plan. Issue Permit 07:30 10:30 3.00 RURD_ COIL AF Spot coil unit to wellhead. Rig up gas buster/choke skid. 10:30 12:00 1.50 RURD_ COIL AF Install CT BOP's on tree. Rig up 2"" hard lines. 12:00 12:15 0.25 RURD_ COIL AF PTest hard lines, 250 si/4500 si hi h. 12:15 13:15 1.00 RURD_ AF Test BOP's, 250 si low ressue/4500 si hi h ressure. 13:15 14:00 0.75 RURD AF Secure location for night. _ Report Date: 5/25/2007 Job Cate o COMPLETION 24 Hr Summary PU injector. Install new dimple-on connection. Pull test 15k. PTest shell. RIH to jet production string dry. www.peloton.com Page 16/19. Report Printed: 9/11/2008 ``,,~~ ~ ! Operations Summary Report ~ ,t,,,,~, ®~~nY Well Name: GRASSIM OSKOLKOFF 5 Start Time End Time Dur hrS): Ops Code Activity Code Ops Status Trouble Cede Comment _ _ _ 07:00 08:00 1.00 SAFETY MTG_ AF Held safety meeting and discussed rig up plan. Issue Permit 08:00 09:00 1.00 RURD_ COIL AF PU injector. Install new dimple-on connector. Pull test to 15K. Test good. MU jet nozzle. 09:00 10:15 1.25 RURD_ COIL AF Install CT injector on WH. Load coil for PTest. 28 bbls. 10:15 10:20 0.08 RURD_ COIL AF PTest CT shell to 1000 psi. Test good. 10:20 10:35 0.25 RUNPUL COIL AF Open master valves. Open swab valve. RIH to 500'. Start N2. Return tank strap 15.5"". (55 bbls) Returns at surface as we GIH. Hole full. Hole capacity 9955x .01522= 151 bbls. '- 10:35 11:00 0.42 RUNPUL COIL AF Start N2 11:00 11:15 0.25 RUNPUL COIL AF Good returns. approx 1 bpm. 11:15 11:45 0.50 RUNPUL COIL AF CT @5000'. Pull test 5K. tank strap 27.5"" 98 bbls.-84==14 bbls recovered. 11:45 12:10 0.42 RUNPUL COIL AF CT @7200'. tank strap 31""-110 bbls-84=26 bbls N2 rate 500 scf 12:10 13:00 0.83 RUNPUL COIL AF CT @7200' tank strap 42.5"" 151 bbls-84=67 bbls. 13:00 13:10 0.17 RUNPUL COIL RU vac truck offload 65 bbls. 13:10 13:30 0.33 RUNPUL COIL AF CT @7900' tank strap 53.7""-191 bbls-84= 107 bbls 13:30 14:00 0.50 RUNPUL COIL AF CT @8602' tank strap 38"" -135bb1s +65bb1 to vac truck=200bb1-84=116 bbls returns 14:00 14:13 0.22 RUNPUL COIL AF CT @ 8602' tank strap 41"" 146 bbls + 65=211 bbls-84 bbls initial=127 bbls returns 14:13 14:34 0.35 RUNPUL COIL AF CT @9357' tank strap 44""-157 bbls +65 bbl=222 bbl-84 initial=138 bls returns 14:34 15:00 0.43 RUNPUL COIL AF CT @9955' tank strap 45.25""-161 bbls+ 65bb1s=226 bbls-84 bbls=142 bbls returns. 15:00 15:41 0.68 RUNPUL COIL AF CT @6500' tank strap 46.75""-166.4 bbls+ 65bb1s=231.4 bbls-84 bbls=147 bbls recovered from well. 15:41 16:30 0.82 RUNPUL COIL AF POOH. 16:30 16:35 0.08 RUNPUL COIL AF OOH. WHP 950 psi. Begin pressuring tubing with N2. 16:35 16:35 RURD_ COIL AF WHP 2115 psi. Shut down N2 pumpe. Close master and swab valves. 16:35 16:55 0.33 RURD_ COIL AF Hold ""tool box"" talk to discuss rig down. 16:55 18:45 1.83 RURD_ COIL AF RD/MO. Secure well and location for the night. Daily Operations Report Date: 5/31/2007 Job Cate o COMPLETION 24 Hr Summary MIRU Expro, arm 30' gun, RIH perforate from 9307' - 9337', Run SBHP and test well to production. Ops Trouble- Start Time End Time Dur (hrs) Ops Code Activity Cade Status Code Comment _ _ 07:00 08:00 1.00 SAFETY MTG_ AF Held PJSM and discussed perforating procedure. Uptained work permit. Stagged equipment. 08:00 10:00 2.00 SAFETY MTG_ AF Went to communication black out on pad prior to arming the gun. Shut off all cell phones and maned gate. 10:00 11:00 1.00 RURD_ ELEC AF MU 30' 3.375"" HSD gun, 6 SPF, 60 degree phased, W/SDP-3125-311NT3 charges. 11:00 11:30 0.50 RURD_ ELEC PU gun, PT lubricator to 2500 psig with water. Good test. Open swab valve and RIH with gun. 11:30 12:00 0.50 RURD_ ELEC AF RIH to perforate from 9307' to 9337' DIL. Correlate Expro CBL 3-12-07 to Precision MDC log 2-7-07, Made 10' correction. Veifed on depth. ~ 12:00 12:10 0.17 RURD_ ELEC AF Blew well down to 2000 si erforate while monitorin ressure au a nq c ange in su ace pressure after 5 minutes. POOH with un. 12:10 12:30 0.33 RURD_ ELEC AF OOH with gun. Blew down lubricator and layed gun down. Gun had no fluid inside appears to be dry. 12:30 12:40 0.17 RURD_ ELEC AF MU logging 1 11/16"" PT logging tool with capacitance. PU and go to well to run SBHP. 12:40 12:55 0.25 RURD_ ELEC AF MU to lubricator, PT to 2000 psig. Good test, open well. RIH with PT tool string. 12:55 13:50 0.92 LOG_ OTHR AF PT tool at midpoint perforation. Pressure at 9315' recorded at 2515 psig. Surface pressure at 2000 psig. Drop down to 9800'. POOH with tools. 13:50 15:46 1.93 LOG_ OTHR AF OOH shut top swab valve, blow down lubricator. Produce well to sales. Plan to maintain flowing pressure at 1300 psig at surface. 15:46 16:30 0.73 RURD ELEC AF Rig back a-line unit. www.peloton.com Page 17119 Report Printed: 9/11/2008 ~ ~ Operations Summary Report ~ ,~,t,,,R„op ®Qj~~,p~ny Well Name: GRASSIM OSKOLKOFF 5 Daily Operations Re ort Date: 6/1/2007 Job Cate o COMPLETION 24 Hr Summary RD a line and move to SD pad. WHP= 1312 psig. Start Time End Time ~ Dur (hrs) '; Ops Code Activity Code Ops Status Trouble Code Comment 07:00 10:00 3.00 SAFETY MTG_ AF Held PJSM and discussed perforating procedure. Uptained work permit. RD wire line valve and moved to SD#5. Re ort Date: 9/29/2007 Job Cate o COMPLETION 24 Hr Summary RU slickline and RIH 3-1/4"" swage. Had to pump 50 gal diesel 2 times to get to bottom. Tagged TD at 9969' Start Time End Time Dur (hrs) Ops Code Activi .Code Ops Status Trouble Code Comment 13:00 13:15 0.25 SAFETY MTG AF _ _ Held PJSM and issued safe work permit. Discuss Pollard JSA. 13:15 13:35 0.33 RURD_ SLIK AF RU slickline unit and PU 3-1/4"" swage. Stab on well. 13:35 13:45 0.17 TEST_ EQIP AF Test lubricator to 3000 psi. 13:45 14:30 0.75 RUNPUL SLIK AF RIH 3-1/4"" swa e. Unable to et dee er than 2300' u stick i e. Call for diesel to um and clean i e. 14:30 16:45 2.25 WAITON OTHR AF Wait on diesel to cut eline grease. 16:45 17:00 0.25 AF Pump 50 gal diesel. 17:00 17:30 0.50 AF RIH to 7400'. Sticky again. Pump 50 gal diesel 17:30 17:50 0.33 AF RIH and tag TD at 9960'. POH 17:50 18:30 0.67 RURD SLIK AF RD and move unit to State Pad. _ Report Date: 11/2/2007 Job Cate o COMPLETION 24 Hr Summary RU slickline and RIH 2.30"" GR. Tagged TD at 9969' KB. ._ Start Time End Time ~i Dur {hrs) i, Ops Code Activity Code ~ Ops Status Trouble Code --_ Comment 08:30 09:30 1.00 SAFETY MTG_ AF Held PJSM and issued safe work permit. Discuss Pollard JSA. 09:30 10:20 0.83 RURD_ SLIK AF RU slickline unit and PU 2.30"" GR. Stab on well. WHP 1850 psi. 10:20 10:45 0.42 TEST_ EOIP AF Test lubricator to 3000 psi. Test good. (Swab valve leaks on this well.) 10:45 11:05 0.33 RUNPUL SLIK AF RIH 2.30"" GR. Tag TD at 9969' KB. 11:05 11:30 0.42 RUNPUL SLIK AF POOH. 11:30 11:45 0.25 RURD_ SLIK AF OOH. PU PT gauges 11:45 11:50 0.08 TEST_ EQIP PTest OTS. Test good. 11:50 13:10 1.33 RUNPUL SLIK AF 5 min bench @ surface. RIH at 120 fpm to 9922'KB. 13:10 13:20 0.17 RUNPUL SLIK AF Hold @ 9922"" KB for 10 min. 13:20 15:10 1.83 RUNPUL SLIK AF POOH with 3 min. stops@ 9,000', 8500', 8000', 7500', 7,000', 6,500', 6,000', and 5,000'. 15:10 15:15 0.08 RUNPUL AF @ 21' for 5 min stop. 15:15 16:15 1.00 RURD_ SLIK AF OOH. Bleed down lubricator. RD. 16:15 16:30 0.25 RURD SLIK AF Turn in Permit. Sign out. Leave location. _ Re ort Date: 11/3/2007 Job Cate o COMPLETION 24 Hr Summary MIRU BJ Coil pumping truck to top of tree to bull KCL down well. Vac truck on location with 60 BBLS 6% KCL. Ready to pump. Expro America on location to run stim gun after fluild. Shut down pump job, RD equipment. Release pump tuck and Expro . Start Time End Time Dur (hrs} ' Ops Code Activity Code Ops Status Trouble Code Comment 08:00 09:00 1.00 SAFETY MTG_ AF _ Held PJSM and issued safe work permit. Discuss Pollard JSA. 09:00 10:00 1.00 PUMP_ WTR_ AF RU pumping unit to well, back in vac truck with 6% KCL. Shut down pump job. Expro Amercia on location to perforate well after oumoina 26 bbls fluid down well. Released unit and crew. RD equipment and move off of well. 10:00 11:00 1.00 RURD OTHR AF Equipment personnel left lease. _ Report Date: 11/9/2007 Job Cate o COMPLETION 24 Hr Summary MIRU BJ n2 unit and psi well to 3,500 psi to squeeze away water to formation. _ I Start Time Fsd Time Dur (hrs) Ops Code ~ Activity Code Ops Status Trouble Code _ Comment 09:00 09:30 0.50 SAFETY MTG_ AF Held PJSM and issued HOT work permit. Discuss BJ JSA. 09:30 10:45 1.25 RURD_ OTHR AF Spot in and rig up BJ N2 unit 10:45 11:00 0.25 TEST_ EOIP AF PT hard line to 4,000 psi. 11:00 12:30 1.50 PUMP_ N2_ AF Open well, start pumping N2 at 1,000 scfm, slowly ramping up to 1,500 scfm /WHP=1,900psi 12:30 13:00 0.50 RURD_ OTHR AF WHP=3,500psi /Shut down N2 unit, shut in well trapping 3,500 psi. Close and flag all valves on tree. www.peloton.com Page 18/19 Report Printed: 9111/2008 M ~ ~ Operations Summary Report ~ ,~„~,,,,oN ®Oi~Corrq~anY Well Name: GRASSIM OSKOLKOFF - Start Time End Tlme . Dur (hrs) Ops Code' Activity Code OpS Status __ Trewble i Code I Comment 13:00 13:15 0.25 SECURE WELL AF --- - - N2 unit rigged down, well secured. NOTE: WAM calculations based on the static log indicate 100% N2 from the fluid level to surface. Daily Operations Re ort Date: 11/17/2007 Job Cate o COMPLETION 24 Hr Summary MIRU Expro. Run PT log to determine fluid level .Fluid level @ 8750' KB. Set CIBP @ 9,280' KB. Start Time ' EndTime Dur (hrs) Ops Code Ar~ivity Code 'Ops Status Trouble Code ' Comment 08:00 08:30 0.50 SAFETY MTG_ AF Hold PJSM-discuss Expro JSA. Obtain Safe Work Permit. Discuss job scope. 08:30 11:25 2.92 RURD_ ELEC AF MIRU equipment. PU lubricator. MU PT gauge string. 2905 psi on WH. 11:25 11:35 0.17 TEST_ EOIP AF PTest Lubrcator to 3000 psi. Test good. 11:35 12:30 0.92 RUNPUL ELEC AF RIH w/ PT gauges to determine fluid level. Log to 9,200'. Establish fluid level 8 750' WLM. Capacitance probe and pressure gradient in good agreement. 12:30 12:40 0.17 RUNPUL ELEC AF Stopped log @ 9200'. 12:40 13:40 1.00 RUNPUL ELEC POOH. 13:40 14:20 0.67 RURD_ ELEC AF OOH. Wait on orders. 14:20 14:55 0.58 Lay down 3-1/2"" lubrcator and pick up the 5-1/2"". 14:55 15:20 0.42 SAFETY MTG_ AF Hold Explosives Safety meeting. Shut down all cell phones and two way radioes on location. Shut down SCADA. Post placards and guard at front entrance to location. Arm setting tool for CIBP. 15:20 15:35 0.25 TEST_ EOIP AF PTest lubrcator to 3000 psi. Test good. 15:35 17:05 1.50 RUNPUL ELEC AF RIH w/ Owen 4-1/2"" CIBP. 17:05 17:15 0.17 RUNPUL ELEC AF Run collar locator log. Pull up into position. 17:15 17:20 0.08 RUNPUL ELEC AF Set CIBP ~ 9,280' KB. (47 seconds) PU and set back down on plug to verify that plug is set. Plug takes weight. Test good. 17:20 18:15 0.92 RUNPUL ELEC AF POOH. 18:15 18:55 0.67 RURD_ ELEC AF OOH. Rig down. 18:55 23:10 4.25 RURD_ ELEC AF Secure well for the night. Verify PT on tree cap connection. Turn in permit. Sign out and leave locaton. Close and lock gate. Re ort Date: 11/20/2007 Job Cate o COMPLETION 24 Hr Summary Bleed off N2 on well from 2900psi to 1522 psi. Shoot 14' - 3-3/8"" HSC - 9221'-9235' OH (9219-9233' CH). Leave well shut in for 1 hr. Well built no pressure after perforating. Flowed well down to 1110 psi and shut in to see if it would build pressure. Start Time End Time DUr.(hrs) Ops Code Activity Code Ops Status Trouble Code I Comment _ 08:00 08:30 0.50 SAFETY MTG_ AF Arrive on location, obtain work permit and sign in. Hold PJSM. Discuss Expro JSA and job scope. 08:30 09:30 1.00 RURD_ ELEC AF RU lubricator. PU 14' of 3-3/8"" 6 spf, 60 degree phased guns. PU tool string. 09:30 09:45 0.25 SAFETY MTG_ AF Hold explosive safety meeting and inform all pad workers of explosive operations, cellphones and welders are turned off. Post placarding and post guard at the gate. 09:45 10:10 0.42 RURD_ ELEC AF Arm and PU 14' - 3-3/8"" -HSC 6spf, 60 degree phased - perf gun. 10:10 10:30 0.33 TEST_ EQIP PU lubricator and 14' perf gun. Pressure test Lubricator to 2500 psig, Test good 10:30 11:40 1.17 RUNPUL ELEC AF RIH with 1542 psi on well 11:40 11:45 0.08 RUNPUL ELEC AF Tag CIBP @ 9280' 11:45 11:50 0.08 RUNPUL ELEC AF Pull into osition and bleed well down to 1522 si SCADA . 11:50 12:00 0.17 PERF_ CSG_ AF Shoot un 9221'-9235' OH -- 9219'-9233' CH (2 foot off depth from coorelation), POOH. Lost a little weight on the tool string when we perforated. Time: Pressure:(SKADA) 1150 1522psi 1200 1526psi 1230 1522psi 1300 1518psi 12:00 13:00 1.00 RURD_ ELEC AF OOH, Lay down tools, Inside of the Gun body was wet. Shot in fluid. 13:00 13:10 0.17 RURD ELEC AF Move over to GO #6. www.peloton.com Page 19/19 Report Printed: 9/11/2008 KOP @ 800' MDI7VD Build 5.0 deg/100' from 800.2140' MD Hold 67 deg from 2140.4440' MD Drop 2 deg/100'to 7790' MD Hold 0 deg from 7790' to TD at 10386' MD Azimuth: 342.22 deg. ' Grassim Oskolkoff #5 Ninilchik Unit 3,083' FSL, 2,988' FEL Sec. 23, T1 N, R13W, S.M. M Mwww-rMOM Conductor L 20" K-55 133 ppf PE Top Bottom MD 0' 81' TVD 0' 81' Surface Casino 9-518" L-80 40 ppf BTC Top Bottom MD 0' 2,264' TVD 0' 1,912' 12.1/4" Hole cmt w/ 532 sks (232 bbls) 12 ppg cmt w/ 90 bbls of cmt to surface Tubing String - 4.5", 12.6#, L-80, Buttress Mod Casing String - 4.5", 12.6#, L-80, Hydril 533/563 Baker Chemical Injection Nipple @ 2415' MD (Top) 5.930" OD/3.A58" ID 8430 psi bursU7500 psi collapse ZXP Liner Packer with 15' Tieback Extension @6492' MD (Top) Flex-Lock Liner Hanger @ 6530.5' MD (Top) Marker Joint Top @ 7451' MD (19.39' long) HES valve @ 8420' KB (2.52' long) 6028' TVD Marker Joint Top @ 9249' MD (19.35' long) Landing Collar @ 9972' MD (Top) Float Collar @ 10,014' MD (Top) Float Shoe @ 10,099.4' MD (Bottom) Expro Radial Bond Log (all 10.5 PPG cement): Run main CBL pass from I I 9950' - 6270'. Bond looks good-excellent 9950.8590', fair 8590-8460', poor J L 8460-8110', and fair-good 8110-6492' (TOC is at ZXP packer at 6492' MD). ~ c ~ c ~ c ~ C CIBP set @ 9280'KB (11/16/07) Tagged PBTD at 9,956' CTMD with coiled tubing on 3/11/2007. Tagged PBTD at 9,960' ELMD with eline on 9/28/2007. Formation Tops: -~ TD: Formation Deoth (MD1 Deoth (TVD1 10,384' MD Beluga 7,987' TVD Tyonek TD Well Name & Number: Grassim Oskolkoff #5 Lease: ADL 389737 Count or Parish: Kenai Peninsula Borou h State/Prov.: Alaska Count USA An le/Perfs: An le @KOP and Depth: KOP (TVD Date Completed: KB Elevation above MSL : 187' RKB above GL : 21' Revised B : Mike Sulle Last Revision Date: 314/2008 Aetive Tvonek Perfs: MD Net Ft TVD 9,221'- 9,235' 1d ft 6,829'- 6,843' 3-318" HSC gun, 6spf, 60° 1111 9/2 0 0 7 ISOLATED BY CAST IRON BRIDGE PLUG @ 9280' 9,307'- 9,337' 30 ft 6,915'- 6,945' 3-3/8" HSD gun, 6spf, 60° 5130/2007 Proposed Tvonek Perfs: MD Net Ft TVD Est SBHP Primary 9,307'- 9,337' 30 h 6,915'-6,945' 3257 psi 9,281'- 9,300' 19 h 6,889'-6,908' 3240 psi 9,211'- 9,221' 10 ft 6,819'-6,829' 3209 psi Secondary 9,172'- 9,202' 30 ft 6,780'-6,810' 3194 psi 8,804'- 8,830' 26 h 6,412'-6,438' 3019 psi 8,742'-8,770' 28ft 6,350'-6,378' 2991 psi Intermediate Casino 7" L-80 8: P-110 26 ppf BTC Top Bottom MD 0' 6,950' TVD 0' 6,440' L-80 0' - 4,293' P-110 4,293'- 6,610' 8-1/2" Hole cmt w/ 258 sks (114 bbls) 12.5 ppg Lead plus 160 sks (34 bbls) 15.8 ppg Tail. Bumped plug, 20 bbl spacer to surface, 100% retums, floats held. Liner 4.1/2" L-80 12.6 ppf Hydril 563 Top Bottom MD 6,592' 10,099' TVD 4,237' 7,705' 7" Hole 1st Staae cmt w/ 145 sks (77 bbls) 10.5 ppg, 100 % returns, w/ 10-15 bbls cmt to surface. 2nd Staoe cmt wl 132 sks (68.5 bbls) 10.5 ppg, 100 % returns w/ 10 bbls cmt to surface. ACTUAL WELLPATH REPORT (CSVversion) Prepared by Baker Hughes INTEQ Software System: WellArchitectT"'1.2 ~~ Q 1 O REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Area Cook Inlet, Alaska (Kenai Penninsula) Field Ninilchik Field Facility MGO Slot MGO#5 Well MGO #5 /~ ~ t Wellbore MGO#5 Wellpath NaviTrak MWD <0-10384'> Sidetrack (none) REPORT SETUP INFORMATION Projection System North Reference Scale Wellbore Last Revised Software System User Report Generated DataBase/Source file WELLPATH LOCATION Slot Location Facility Reference Pt Field Reference Pt WELLPATH DATUM Calculation method Horizontal Reference Point Vertical Reference Point ~o t ~3 1~ ti CS~ 6d NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet TRUE 0.999984 7/2/2007 WellArchitectT"^ Jonethoh 02/07/07 at 10:01:37 WA Anchorage/ev01.xm1 Local North Local East [ft] [ft] 3097.05 2299.31 Minimum curvature Slot Glacier #1 (RKB) Grid East Grid North [ft] [ft] 229026.9 2255049.14 226657.9 2252005.16 226657.8 2252005.119 Latitude [°l 60 09 51.688N 60 09 21.189N 60 09 21.189N Longitude [°l 151 29 15.781 W 151 30 01.220W 151 30 01.220W MD Reference Point Glacier #1 (RKB) Field Vertical Reference Mean Sea Level Glacier #1 (RKB) to Facility Vertical Datum 187.00 feet Glacier #1 (RKB) to Mean Sea Level 187.00 feet Facility Vertical Datum to Mud Line (Facility) 0.00 feet Section Origin X 0.00 feet Section Origin Y 0.00 feet Section Azimuth 341.62° W E L L P A T H DATA Wellbore: MGO#5 Wellpath: NaviTrak MWD <0-10384'> t=interpolated/extrapolated station MD feet Inclination deg Azimuth deg TVD feet Vert Sect feet North feet East feet Grid East us survey feet Grid North us survey feet DLS deg/100ft Build Rate Turn Rate deg/100ft deg/100ft 0 0 0 0 0 0 0 229026.9 2255049 0 0 0 275 2.9 16 274.88 5.74 6.69 1.92 229028.9 2255056 1.05 1.05 0 335 3.6 16.5 334.79 8.54 9.95 2.87 229030 2255059 1.17 1.17 0.83 396 3.3 14.8 395.68 11.58 13.49 3.86 229031 2255063 0.52 -0.49 -2.79 454 3 13.5 453.59 14.27 16.58 4.64 229031.9 2255066 0.53 -0.52 -2.24 514 2.1 11 513.53 16.56 19.18 5.22 229032.5 2255068 1.51 -1.5 -4.17 575 1.7 4.3 574.49 18.37 21.18 5.5 229032.9 2255070 0.75 -0.66 -10.98 636 1.9 1.9 635.46 20.15 23.1 5.6 229033 2255072 0.35 0.33 -3.93 696 2 2.2 695.43 22.06 25.14 5.68 229033.1 2255074 0.17 0.17 0.5 759 1.9 1.2 758.39 24.08 27.28 5.74 229033.2 2255076 0.17 -0.16 -1.59 822 3.3 344.6 821.33 26.87 30.07 5.28 229032.8 2255079 2.5 2.22 -26.35 886 6.1 335.7 885.11 32.1 34.95 3.39 229031.1 2255084 4.51 4.38 -13.91 949 9 334.5 947.55 40.32 42.45 -0.11 229027.7 2255092 4.61 4.6 -1.9 1010 12.6 335.8 1007.46 51.67 52.83 -4.89 229023.2 2255102 5.91 5.9 2.13 1074 15.3 338.6 1069.57 67.05 67.06 -10.83 229017.6 2255116 4.35 4.22 4.37 1137 18.1 339.9 1129.91 85.14 83.99 -17.23 229011.5 2255134 4.48 4.44 2.06 1201 21.3 340 1190.15 106.7 104.25 -24.63 229004.6 2255154 5 5 0.16 1264 24.9 338.7 1248.09 131.39 127.37 -33.36 228996.4 2255177 5.77 5.71 -2.06 1328 28.1 339 1305.36 159.91 154 -43.66 228986.7 2255204 5 5 0.47 1391 30.2 340.1 1360.38 190.58 182.76 -54.37 228976.6 2255233 3.44 3.33 1.75 1455 32.2 340.8 1415.12 223.72 214 -65.46 228966.3 2255265 3.18 3.13 1.09 1518 34.2 341 1467.83 258.21 246.59 -76.74 228955.7 2255297 3.18 3.17 0.32 • LJ 1582 37.1 341.3 1519.83 295.51 281.89 -88.79 228944.5 2255333 4.54 4.53 0.47 1645 40.1 340.7 .1569,06 334.81 319.05 -101.59 228932.5 2255370 4.8 4.76 -0.95 1708 43.3 341.1 1616.1 376.71 358.65 -115.3 228919.7 2255410 5.1 5.08 0.63 1772 46.4 340.8 1661.46 421.83 401.31 -130.03 228905.9 2255453 4.86 4.84 -0.47 1835 49.2 340.8 1703.78 468.5 445.38 -145.38 228891.6 2255498 4.44 4.44 0 1899 52.8 340.8 1744.05 518.22 492.34 -161.73 228876.3 2255545 5.63 5.62 0 1962 57.1 340.1 1780.22 569.77 540.93 -179 228860.1 2255594 6.89 6.83 -1.11 2026 60.9 340.4 1813.18 624.6 592.55 -197.53 228842.7 2255646 5.95 5.94 0.47 2089 64.6 341.5 1842.02 680.6 645.48 -215.8 228825.7 2255699 6.07 5.87 1.75 2153 67.1 342 1868.2 738.99 700.94 -234.08 228808.6 2255755 3.97 3.91 0.78 2208 66.8 342.9 1889.74 789.59 749.19 -249.34 228794.5 2255804 1.6 -0.55 1.64 2320 66.1 341.5 1934.49 892.26 846.95 -280.72 228765.3 2255902 1.31 -0.62 -1.25 2383 65.6 341.2 1960.26 949.74 901.41 -299.11 228748.2 2255957 0.9 -0.79 -0.48 2446 66.5 341.4 1985.84 1007.32 955.95 -317.57 228730.9 2256012 1.46 1.43 0.32 2510 66.5 341.1 2011.36 1066.01 1011.53 -336.43 228713.3 2256068 0.43 0 -0.47 2573 66.1 341.2 2036.68 1123.69 1066.12 -355.07 228695.9 2256123 0.65 -0.63 0.16 2637 66.7 341.5 2062.3 1182.34 1121.69 -373.82 228678.4 2256179 1.03 0.94 0.47 2700 66.5 341.2 2087.32 1240.16 1176.47 -392.31 228661.2 2256234 0.54 -0.32 -0.48 2764 66.2 341.5 2112.99 1298.78 1232.01 -411.06 228643.7 2256290 0.64 -0.47 0.47 2827 66.7 341.5 2138.17 1356.53 1286.78 -429.39 228626.6 2256345 0.79 0.79 0 2890 66.5 341.6 2163.19 1414.35 1341.63 -447.68 228609.5 2256400 0.35 -0.32 0.16 2953 66.1 341.1 2188.51 1472.04 1396.29 -466.13 228592.3 2256456 0.97 -0.63 -0.79 3016 66.8 341.4 2213.68 1529.79 1450.97 -484.69 228575 2256511 1.19 1.11 0.48 3079 66.7 341.5 2238.55 1587.67 1505.85 -503.11 228557.8 2256566 0.22 -0.16 0.16 3142 66.5 341.1 2263.57 1645.49 1560.62 -521.65 228540.5 2256621 0.66 -0.32 -0.63 3205 66.1 340.6 2288.89 1703.17 1615.11 -540.57 228522.8 2256676 0.97 -0.63 -0.79 3268 67.1 341.7 2313.91 1760.98 1669.83 -559.25 228505.4 2256731 2.26 1.59 1.75 3331 67.7 341.9 2338.12 1819.15 1725.08 -577.41 228488.5 2256787 1 0.95 0.32 3394 67.3 341.9 2362.23 1877.35 1780.4 -595.5 228471.6 2256842 0.63 -0.63 0 3457 67 341.9 2386.7 1935.4 1835.59 -613.53 228454.9 2256898 0.48 -0.48 0 3520 66.7 342 2411.47 1993.33 1890.66 -631.48 228438.1 2256954 0.5 -0.48 0.16 3584 66.5 341.6 2436.88 2052.07 1946.46 -649.83 228421.1 2257010 0.65 -0.31 -0.62 3646 66 341.9 2461.85 2108.82 2000.36 -667.6 228404.5 2257064 0.92 -0.81 0.48 3709 66.6 342.8 2487.18 2166.5 2055.33 -685.09 228388.3 2257119 1.62 0.95 1.43 3773 68.3 343.1 2511.72 2225.59 2111.83 -702.42 228372.2 2257176 2.69 2.66 0.47 3836 68 343 2535.17 2284.04 2167.77 -719.46 228356.4 2257233 0.5 -0.48 -0.16 3900 67.7 343.2 2559.3 2343.3 2224.48 -736.7 228340.5 2257290 0.55 -0.47 0.31 3963 67.4 342.8 2583.35 2401.51 2280.17 -753.72 228324.7 2257346 0.76 -0.48 -0.63 4027 67.1 343 2608.1 2460.51 2336.58 -771.07 228308.6 2257402 0.55 -0.47 0.31 4091 66.8 342.8 2633.16 2519.39 2392.86 -788.39 228292.6 2257459 0.55 -0.47 -0.31 4154 66.3 343.3 2658.23 2577.17 2448.15 -805.24 228277 2257515 1.08 -0.79 0.79 4217 66 342.6 2683.71 2634.77 2503.24 -822.13 228261.3 2257570 1.12 -0.48 -1.11 4280 65.5 343.1 2709.58 2692.2 2558.12 -839.07 228245.6 2257625 1.07 -0.79 0.79 4342 65.1 342.8 2735.49 2748.51 2611.97 -855.59 228230.3 2257680 0.78 -0.65 -0.48 4406 64.8 342.6 2762.59 2806.48 2667.33 -872.83 228214.4 2257735 0.55 -0.47 -0.31 4469 63.5 342.6 2790.06 2863.17 2721.43 -889.78 228198.6 2257790 2.06 -2.06 0 4532 63 342.2 2818.41 2919.42 2775.06 -906.79 228182.8 2257844 0.98 -0.79 -0.63 4596 62.6 342.4 2847.67 2976.34 2829.28 -924.1 228166.8 2257898 0.68 -0.63 0.31 • 4658 61.7 342.7 2876.63 3031.15 2881.58 -940.54 228151.5 2257951 1.51 -1.45 0.48 4720 61.3 343.1 2906.21 3085.62 2933.66 -956.56 228136.6 2258004 0.86 -0.65 0.65 4783 60.2 342.4 2937 3140.58 2986.15 -972.86 228121.5 2258056 2 -1.75 -1.11 4846 59.8 342.5 2968.5 3195.13 3038.17 -989.31 228106.3 2258109 0.65 -0.63 0.16 4910 58.3 342.4 3001.41 3250.01 3090.5 -1005.86 228090.9 2258161 2.35 -2.34 -0.16 4973 57.4 342.6 3034.93 3303.34 3141.37 -1021.9 228076 2258213 1.45 -1.43 0.32 5035 55.8 342.8 3069.06 3355.09 3190.79 -1037.29 228061.7 2258262 2.59 -2.58 0.32 5099 54.5 343 3105.63 3407.6 3240.99 -1052.74 228047.4 2258313 2.05 -2.03 0.31 5162 52.9 343.1 3142.93 3458.36 3289.55 -1067.54 228033.7 2258362 2.54 -2.54 0.16 5225 51.5 343.5 3181.54 3508.11 3337.23 -1081.84 228020.5 2258410 2.28 -2.22 0.63 5289 51.3 343.8 3221.47 3558.1 3385.23 -1095.92 228007.5 2258458 0.48 -0.31 0.47 5352 49.6 343.1 3261.58 3606.65 3431.79 -1109.76 227994.7 2258505 2.83 -2.7 -1.11 5416 48.7 343.2 3303.45 3655.04 3478.12 -1123.79 227981.7 2258552 1.41 -1.41 0.16 5479 47.6 343.3 3345.48 3701.95 3523.06 -1137.32 227969.2 2258597 1.75 -1.75 0.16 5543 46.6 343.2 3389.04 3748.82 3567.95 -1150.83 227956.7 2258642 1.57 -1.56 -0.16 5606 45.1 343.7 3432.92 3793.99 3611.28 -1163.7 227944.8 2258686 2.45 -2.38 0.79 • 5670 44 343.7 3478.53 3838.86 3654.37 -1176.31 227933.2 2258729 1.72 -1.72 0 5733 42.7 343.9 3524.34 3882.08 3695.9 -1188.37 227922.1 2258771 2.07 -2.06 0.32 5796 41.3 344.2 3571.16 3924.19 3736.43 -1199.96 227911.4 2258812 2.24 -2.22 0.48 5859 40.1 343.5 3618.92 3965.24 3775.89 -1211.38 227900.9 2258851 2.04 -1.9 -1.11 5921 38.9 343.1 3666.76 4004.66 3813.67 -1222.71 227890.4 2258889 1.98 -1.94 -0.65 5984 37.4 342.3 3716.3 4043.57 3850.82 -1234.28 227879.7 2258927 2.51 -2.38 -1.27 6047 36.3 341.5 3766.72 4081.35 3886.73 -1246.01 227868.7 2258963 1.9 -1.75 -1.27 6110 34.7 342.4 3818 4117.93 3921.51 -1257.35 227858.2 2258998 2.67 -2.54 1.43 6173 33.4 342.7 3870.2 4153.2 3955.17 -1267.93 227848.4 2259032 2.08 -2.06 0.48 6236 31.7 342.4 3923.3 4187.09 3987.5 -1278.1 227838.9 2259064 2.71 -2.7 -0.48 6299 30.4 343.3 3977.28 4219.58 4018.55 -1287.68 227830.1 2259096 2.19 -2.06 1.43 6362 29.2 344.6 4031.95 4250.86 4048.63 -1296.34 227822.1 2259126 2.16 -1.9 2.06 6424 27.9 345.1 4086.4 4280,44 4077.23 -1304.09 227815 2259155 2.13 -2.1 0.81 6488 26.5 344.3 4143.33 4309.65 4105.45 -1311.8 227807.9 2259183 2.26 -2.19 -1.25 6551 25.2 343 4200.02 4337.1 4131.81 -1319.53 227800.8 2259210 2.25 -2.06 -2.06 6615 23.5 342.6 4258.33 4363.48 4157.02 -1327.33 227793.5 2259235 2.67 -2.66 -0.62 6678 21.9 341.8 4316.44 4387.79 4180.16 -1334.76 227786.6 2259258 2.59 -2.54 -1.27 6802 19.9 341 4432.28 4432.03 4222.09 -1348.85 227773.5 2259300 1.63 -1.61 -0.65 6865 19.7 340.3 4491.56 4453.36 4242.23 -1355.92 227766.9 2259321 0.49 -0.32 -1.11 6927 18.9 340.5 4550.07 4473.85 4261.53 -1362.8 227760.4 2259340 1.29 -1.29 0.32 6991 16.9 341.1 4610.97 4493.52 4280.1 -1369.27 227754.4 2259359 3.14 -3.12 0.94 • 7053 15.5 339.2 4670.51 4510.81 4296.37 -1375.13 227748.9 2259375 2.41 -2.26 -3.06 7116 14.7 342 4731.33 4527.21 4311.85 -1380.59 227743.8 2259391 1.72 -1.27 4.44 7179 14.2 341.2 4792.34 4542.93 4326.76 -1385.55 227739.2 2259406 0.85 -0.79 -1.27 7242 11.9 340.9 4853.71 4557.15 4340.22 -1390.17 227734.8 2259419 3.65 -3.65 -0.48 7305 9.6 338 4915.6 4568.89 4351.23 -1394.26 227731 2259431 3.75 -3.65 -4.6 7368 7.7 336.7 4977.88 4578.34 4359.98 -1397.9 227727.6 2259439 3.03 -3.02 -2.06 7431 7.5 340.2 5040.33 4586.66 4367.72 -1400.96 227724.7 2259447 0.8 -0.32 5.56 7494 6.5 338.8 5102.86 4594.33 4374.91 -1403.64 227722.2 2259454 1.61 -1.59 -2.22 7556 4.8 341.7 5164.55 4600.43 4380.65 -1405.73 227720.2 2259460 2.78 -2.74 4.68 7619 3.4 337.7 5227.39 4604.93 4384.88 -1407.26 227718.8 2259465 2.27 -2.22 -6.35 7682 1.8 333.5 5290.32 4607.77 4387.49 -1408.41 227717.7 2259467 2.56 -2.54 -6.67 7745 0.8 297.9 5353.31 4609.07 4388.59 -1409.24 227716.9 2259468 1.97 -1.59 -56.51 7871 1.5 314.2 5479.28 4611.17 4390.15 -1411.2 227714.9 2259470 0.61 0.56 12.94 7997 1.4 282.3 5605.24 4613.42 4391.63 -1413.89 227712.3 2259471 0.64 -0.08 -25.32 8123 1.8 291 5731.19 4615.46 4392.66 -1417.24 227709 2259473 0.37 0.32 6.9 8249 2.1 302.7 5857.12 4618.51 4394.62 -1421.03 227705.2 2259475 0.39 0.24 9.29 • 8375 2.5 304.4 5983.02 4622.5 4397.42 -1425.24 227701.1 2259477 0.32 0.32 1.35 8501 0.8 201.6 6108.98 4624.01 4398.15 -1427.83 227698.5 2259478 2.21 -1.35 -81.59 8626 1.8 176.6 6233.94 4621.44 4395.38 -1428.04 227698.2 2259475 0.9 0.8 -20 8750 0.9 235.6 6357.91 4619.29 4392.89 -1428.73 227697.5 2259473 1.24 -0.73 47.58 8878 1 253 6485.9 4619.04 4391.99 -1430.62 227695.6 2259472 0.24 0.08 13.59 9005 1 289.9 6612.88 4619.76 4392.05 -1432.73 227693.5 2259472 0.5 0 29.06 9132 1.5 302.7 6739.85 4621.74 4393.32 -1435.17 227691 2259474 0.45 0.39 10.08 9258 2.2 326.4 6865.78 4625.35 4396.23 -1437.89 227688.4 2259477 0.81 0.56 18.81 9321 3.1 327.4 6928.72 4628.17 4398.67 -1439.48 227686.9 2259479 1.43 1.43 1.59 9445 2.1 334 7052.59 4633.67 4403.54 -1442.28 227684.2 2259484 0.84 -0.81 5.32 9572 2.6 334.9 7179.48 4638.84 4408.24 -1444.52 227682 2259489 0.39 0.39 0.71 9701 3.5 331 7308.3 4645.62 4414.33 -1447.67 227679 2259495 0.72 0.7 -3.02 9822 4.3 328.2 7429.01 4653.66 4421.42 -1451.86 227675 2259502 0.68 0.66 -2.31 9952 5.1 328.9 7558.58 4664.04 4430.51 -1457.41 227669.7 2259511 0.62 0.62 0.54 10074 6 326.4 7680 4675.48 4440.46 -1463.74 227663.5 2259521 0.76 0.74 -2.05 10202 6.9 325.9 7807.19 4689.33 4452.4 -1471.75 227655.8 2259533 0.7 0.7 -0.39 10330 7.7 323.9 7934.15 4704.9 4465.69 -1481.11 227646.7 2259547 0.66 0.63 -1.56 10384 8 323.9 7987.65 4711.93 4471.65 -1485.46 227642.5 2259553 0.56 0.56 0 HOLE AND CASING S ECTIONS Ref Wellbore: MGO#5 Ref Well path: NaviTrak MWD <0-10384'> String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S End N/S Start E/W End E/W feet feet feet feet feet 20in Conductor 0 80 80 0 80 0 0 0.57 0.16 9.625in Casing Surface 0 2264 2264 0 1911.95 0 0 798.23 -264.75 Tin Casing Intermediate 0 6731 6731 0 4365.77 0 0 4198.58 -1340.87 WELLPATH COMPOSITION Ref Wellbore: MGO#5 Ref Wellpath: NaviTrak MWD <0-10384'> Log Name/Comment Start MD End MD Pos Unc Model feet feet NaviTrak MWD <0-2265'> 0 2208 NaviTrak (Standard) NaviTrak MWD <2320 - 6744'> 2208 6678 NaviTrak (Standard) NaviTrak MWD<6802 - 10384'> 6678 10384 NaviTrak (Standard) WELLPATH COMMENTS MD Inclination Azimuth TVD Comment feet degrees degrees feet 2265 66.442 342.189 1912.35 Projection to Section TD 6744 20.835 341.392 4377.91 Projection to Section TD 10384 8 323.9 7987.65 Projection to TD SURVEY LOG COMMENTS MD Inclination Azimuth TVD Comment feet degrees degrees feet^ " 10384 8 323.9 7987.65 Projected Data - No Survey^ ^ Marathon Oil Company GO #5 MFT Pressure Test Table est No. epth(ft) VD(ft) Quartz Pressure Before psig Quartz. Pressure Final Shut-in psig Quartz Pressure After psig omments 1 7784 5392.30 2688.00 2608.00 2688.00 NO SEAL 2 7782 5390.30 2687.00 88.00 2687.00 TIGHT 3 7772 5380.30 2669.20 2642.19 2671.98 NO SEAL 4 7770 5378.30 2670.34 326.51 2670.62 TIGHT 5 7766 5374.30 2678.15 2630.00 2678.00 NO SEAL 6 7754 5362.31 2661.76 2657.66 2662.24 NO SEAL 7 7753 5361.31 2662.20 2558.00 2661.00 NO SEAL 8 6638 2117.00 0.00 2115.00 GOOD/TIGHT PIPE CHECK 9 7735 5343.31 2648.91 0.00 2649.26 TIGHT 10 7737 5345.31 2652.29 158.00 2652.37 TIGHT 11 7728 5336.31 2649.40 2424.00 2649.09 GOOD 12 7723 5331.31 2646.99 2646.99 2646.99 NO SEAL 13 7722 5330.31 2647.04 0.00 2646.22 TIGHT 14 7493 5101.87 2531.77 0.00 2530.88 TIGHT 15 7487 5095.91 2527.79 2527.79 2527.79 NO SEAL 16 7490 5098.89 2528.92 2528.92 2528.76 NO SEAL 17 7483 5091.94 2525.12 2482.36 2524.68 NO SEAL 18 7479 5087.97 2522.13 172.00 2521.26 TIGHT 19 7180 4793.31 2371.67 2371.67 2371.67 NO SEAL 20 7178 4791.37 2370.59 2122.95 2370.42 GOOD 21 7164 4777.81 2363.82 1111.80 2363.40 TIGHT 23 7144 4758.44 2353.41 2108.40 2353.24 GOOD 24 7048 4665.71 2306.45 2306.45 2306.25 NO SEAL 25 7049 4666.67 2307.02 2307.02 2307.02 NO SEAL 26 7040 4658.03 2302.41 2302.41 2302.41 NO SEAL 27 7043 4660.91 2303.43 2303.43 2303.43 NO SEAL 28 6812 4441.69 2193.77 1977.87 2193.39 GOOD 29 6807 4436.98 2190.18 2023.14 2190.84 GOOD 30 6802 4432.28 2188.34 2188.34 2188.34 NO SEAL 31 6799 4429.48 2186.86 2186.86 2186.86 NO SEAL 32 6800 4437.92 2187.03 2187.03 2187.03 NO SEAL 33 34 35 36 37 38 39 40 ,j,U?-cSC~I M Marathon MARATHON Oil Company December 20, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Sundry Report Field: Ninilchik Unit Well: Grassim Oskolkoff #5 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Attached for your records is the Sundry Report 10-404 for GO-5 well. This sundry covers the Tyonek zone perforating work that Marathon completed under sundry #307-312. The original perforations did not appear to made contact with the formation. Marathon's initial plan was to stimulate the original perforations with Geo Dynamic Stim guns. Water infiltration into the weiibore demonstrated that there was a connection between the formation and the wellbore. The Geo Dynamic guns were on longer applicable for this situation. 3-3/8" 6spf 60° phased guns were utilized to complete the perforating operation. Please contact me at (907) 283 -1371 if you have any questions or need additional information. ~~~~~~ Sincerely, ,~~..~ s~ t~EC 2 4 2007 ;Alaska Oil & lass Cnr~. l~ommissiort An~l~~ra~ Kevin J. Skiba Production Technician Enclosures: 10-404 Sundry Report Operations Summary Well Schematic cc: Houston Well File Kenai Well File KJS KDW ~b~-(3U1 a 1 i/ I~ STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMMISSION DEG ~ `~ 2~~7 REPORT OF SUNDRY WELL OPERATIONS asks Qvl c~ (?a~ I::~k~~. ~:Ot1°e~i~~i®rs 1.Operations Abandon Repair Well Plug Perforations Stimulate Othe Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver ^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate Q Re-enter Suspended Well ^ 2.Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ^ Exploratory^ 207-001 '~ 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20565-00-00 7. KB Elevation (tt): 9. Well Name and Number: 18T 21' AGL - Grassim Oskolkoff #5 8. Property Designation: 10. Field/Pool(s): ADL 389737 ' Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 10,384' ' feet Plugs (measured) NA true vertical 7,987' feet Junk (measured) NA Effective Depth measured 9,960' feet true vertical 7,587' feet Casing Length Size MD TVD Burst Collapse Structural 0 0 0 0 0 0 Conductor 60' 20" 81' 81' 3,060 psi 1,500 psi Surface 2,243' 9-5/8" 2,264' 1,912' 5,750 psi 3,090 psi Intermediate 6,709' 7" 6,730' 4,365' 7,240 psi 5,410 psi Production 0 0 0 0 0 0 Liner 3,607' 4-1/2" 10,099' 7,705' 8,440 psi 7,500 psi Perforation depth: Measured depth: 9,221' - 9,337' True Vertical depth: 6,829' - 6,945' Tubing: (size, grade, and measured depth) 4-112" L-80 6,492' Packers and SSSV (type and measured depth) ZXP Liner Packer w/Tie Back Extension 6,492' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation: 0 0 0 0 126 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development 0 Service ^ Daily Report of Well Operations 16. Well Status after work: Oil ^ Gas ^/ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 307-312 Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Se nior Production Engineer Signature ~, -~ Phone (907) 283-1311 Date December 20, 2007 Form 10-404 Revised 04/2006 ~~~ ~~~. ~iµlV F) ~ ~~~~ ~~~ ~ Submit Original Only • • Grassim Oskolkoff #5 Ninilchik Unit 3,083' FSL, 2,988' FEL Sec. 23, T1 N, R13W, S.M. M MARATNOM KOP @ 800' MD/TVD Build 5.0 deg/100' from 800-2140' MD Hold 67 deg from 2140.4440' MD Drop 2 deg/100' to 7790' MD Hold 0 deg from 7790' to TD at 10388' MD Azimuth: 342.22 deg. Tubing String - 4.5", 12.6#, L-80, Buttress Mod Casing String - 4.5", 12.6#, L-80, Hydril 533/563 Baker Chemical Injection Nipple @ 2415' MD (Top) 5.930" OD/3.858" ID 8430 psi bursU7500 psi collapse ZXP Liner Packer with 15' Tieback Extension @6492' MD (Top) Flex-Lock Liner Hanger @ 6530.5' MD (Top) Marker Joint Tap @ 7451' MD (19.39' long) HES valve @ 8420' KB (2.52' long) 6028' ND Marker Joint Top @ 9249' MD (19.35' long) Landing Collar @ 9972' MD (Top) Float Collar @ 10,014' MD (Top) Float Shoe @ 10,099.4' MD (Bottom) Expro Radial Bond Log (all 10.5 PPG cement): Run main CBL pass from ~ ~ ~ C 9950' - 6270'. Bond looks good•excellent 9950-8590', fair 8590-8460', poor -i~ 8460-8110', and fair-good 8110-6492' (TOC Is at ZXP packer at 6492' MD). ~ c ~ c Tagged PBTD at 9,956' CTMD with coiled tubing on 3111/2007. Tagged PBTD at 9,960' ELMD with eline on 912812007. Formation Tops: TD: Formation Depth (MD) Depth (ND) 10,384' MD BOluga 7,987' ND Tyonek TD Well Name 8 Number: Grassim Oskolkoff #5 Lease: ADL 389737 Count or Parish: Kenai Peninsula Borou h State/Prov.: Alaska Count USA An le/Perfs: An le KOP and De lh: KOP ND Date Com leted: KB Elevation above MSL : 187' RKB above GL : 21' Pre ared B : Kevin Skiba Last Revision Date: 1212012007 L Conductor 20" K-55 133 ppf PE Top Bottom MD 0' 81' ND 0' 81' Surface Caslna 9-518" L-80 40 ppf BTC Top Bottom MD 0' 2,264' ND 0' 1,912' 12.114" Hole cmt w/ 532 sks (232 bbls) 12 ppg cmt wl 90 bbls of cmt to surface AcOw Tvonek MD Perh: Net Ft TVD 9,221'- 9,235' 14 R 6,829'- 6,843' 3J18" HSC pun, 6spr, 60° 1111912007 9,307'• 8,337' 30 K ~ 6,915'- 6,915' 3JI8" HSD gun, 6spt, 60° 513012007 Proposed Tvo MD nek Perfs: Nel Ft TVD Est SBHP Prlmarv 9,307'- 9,337' 30 ft 6,915'-6,945' 3257 psi 9,281'- 9,300' 19 ft 6,889'-6,908' 3240 psi 9,211'- 9,221' 10 fl 6,819'-6,829' 3209 psi 8,742'- 8,770' 28 fl 6,350'E,378' 2991 psi Gonda 9,172'- 9,202' 30 ft 6,780'-6,810' 3194 psi 8,804'- 8,830' 26 K 6 412'-6,438' 3019 psi Intermediate Caslna 7" L-80 & P-110 26 ppf BTC Top Bottom MD 0' 6,950' ND 0' 6,440' L-80 0' - 4,293' P-110 4,293' - 8,810' 8.112" Hole cmt wl 258 aks (114 bbls) 12.5 ppg Lead plus 160 aks (34 bbls) 15.8 ppg Tail. Bumped plug, 20 bbl spacer to surface, 100 returns, Floats held. Liner 4-112" L-80 12.6 ppf Hydrll 563 Top Bottom MD 6,592' 10,099' ND 4,237' 7,705' 7" Hole 1st Staae cmt w/ 145 sks (77 bbls) 10.5 ppg, 100 % returns, w/ 10-15 bbls cmt to surface. 2nd Staae cmt w/ 132 sks (68.5 bbls) 10.5 ppg, 100 % returns w/ 10 bbls cmt to surface. • • Marathon.Oil Company Page 3 of 5 Operations Siummally Report Legal Weil Name: GRASSIM OSKOLKOFF 5 Common Well Name: GRASSIM OSKOLKOFF 5 Spud Date: 1/15!2007 Event Name: ORIGINAL COMPLETION Start: 3!812007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From.- To Hours Code Code Phase Description of Operations 11/2/2007 08:30 - 09;30 1.00 SAFETY MTG_ PRIEVL Held PJSM and issued safe work permit. Discuss Pollard JSA. 09;30 -10:20 0.83 RURD_ SLIK PRIEVL RU slickline unit and PU 2.30" GR. Stab on well. WHP 1850 psi. 10:20 - 10:45 0.42 TEST_ EQIP PRIEVL Test lubricator to 3000 psi. Test good.. (Swab valve leaks on this well.j 10;45 -11:05 0.33 RUNPUL SLIK PRIEVL RIH 2,30" GR. Tag TD at 9969' Kt3. a~~rnd• ~at~nMnm C~ • Marathon Oil Company Page 4 of 5 Operations Summary Report Legal Well Name: GRASSIM OSKOLKOFF 5 Common Well Name: GRASSIM OSKOLKOFF 5 Spud Date: 1/15/2007 Event Name: ORIGINAL COMPLETION Start: 3/8/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - 7o Nours Code Code Phase Description of Operations 11/2/2007 11:05 - 11:30 0.42 RUNPU SLIK PR1EVL POOH. 11:30 - 11:45 0.25 RURD_ SLIK PR1EVL OOH. PU PT gauges 11:45 - 11:50 0.08 TEST_ EOIP PR1 EVL PTest OTS. Test good. 11:50 - 13:10 1.33 RUNPU SLIK PR1EVL 5 min bench @ surface. RIH at 120 fpm to 9922'KB. 13:10 - 13:20 0.17 RUNPU SLIK PR1EVL Hold @ 9922" KB for 10 min. 13:20 - 15:10 1.83 RUNPU SLIK PR1EVL POOH with 3 min. stops@ 9,000', 8500', 8000', 7500', 7,000', 6,500', 6,000', and 5,000'. 15:10 - 15:15 0.08 RUNPU PR1 EVL @ 21' for 5 min stop. 15:15 - 16:15 1.00 RURD_ SLIK PR1EVL OOH. Bleed down lubricator. RD. 16:15 - 16:30 0.25 RURD_ SLIK PR1 EVL Tum in Permit. Sign out. Leave location. 11/3/2007 08:00 - 09:00 1.00 SAFETY MTG_ PR1 EVL Held PJSM and issued safe work permit. Discuss Pollard JSA. 09:00 - 10:00 1.00 PUMP_ WTR PR1 EVL RU pumping unit to well, back in vac truck with 6% KCL. Shut down pump job. Expro Amercia on location to perforate well after pumping 26 bbls fluid down well. Released unit and crew. RD equipment and move off of well. 10:00 - 11:00 1.00 RURD_ OTHR PR1EVL Equipment personnel left lease. 11/9/2007 09:00 - 09:30 0.50 SAFETY MTG_ WBPREP Held PJSM and issued HOT work permit. Discuss BJ JSA. 09:30 - 10:45 1.25 RURD_ OTHR WBPREP Spot in and rig up BJ N2 unit 10:45 - 11:00 0.25 TEST_ EOIP WBPREP PT hard line to 4,000 psi. 11:00 - 12:30 1.50 PUMP_ N2_ WBPREP Open well, start pumping N2 at 1,000 scfm, slowly ramping up to 1,500 scfm /WHP=1,900psi 12:30 - 13:00 0.50 RURD_ OTHR WBPREP WHP=3,500psi /Shut down N2 unit, shut in well trapping 3,500 psi. Close and flag all valves on tree. 13:00 - 13:15 0.25 SECUR WELL WBPREP N2 unit rigged down, well secured. NOTE: WAM calculations based on the static log indicate 100% N2 from the fluid level to surface. 11/17/2007 08:00 - 08:30 0.50 SAFETY MTG_ PR1EVL Hold PJSM-discuss Expro JSA. Obtain Safe Work Permit. Discuss job scope. 08:30 - 11:25 2.92 RURD_ ELEC PR1EVL MIRU equipment. PU lubricator. MU PT gauge string. 2905 psi on WH. 11:25 - 11:35 0.17 TEST_ EOIP PR1 EVL PTest Lubrcator to 3000 psi. Test good. 09:55 - 10:50 0.92 RUNPU ELEC PR1 EVL RIH w/ PT gauges to determine fluid level. Log to 9,200'. Establish fluid level @ 8,750' WLM. Capacitance probe and pressure gradient in good agreement. 10:50 - 11:00 0.17 RUNPU ELEC PR1 EVL Stopped log @ 9200'. 11:00 - 12:00 1.00 RUNPU ELEC PR1EVL POOH. 12:00 - 12:40 0.67 RURD_ ELEC PR1 EVL OOH. Wait on orders. 12:40 - 13:15 0.58 PR1EVL Lay down 3-1 /2" lubrcator and pick up the 5-1/2". 13:15 - 13:40 0.42 SAFETY MTG_ PR1 EVL Hold Explosives Safety meeting. Shut down all cell phones and two way radioes on location. Shut down SCADA. Post placards and guard at front entrance to location. Arm setting tool for CIBP. 13:40 - 13:55 0.25 TEST_ EOIP PR1 EVL PTest lubrcator to 3000 psi. Test good. 13:55 - 15:25 1.50 RUNPU ELEC PR1EVL RIH w/ Owen 4-1/2" CIBP. 15:25 - 15:35 0.17 RUNPU ELEC PR1 EVL Run collar locator log. Pull up into position. 15:35 - 15:40 0.08 RUNPU ELEC PR1EVL Set CIBP @ 9,280' KB. (47 seconds) PU and set back down on plug to verify that plug is set. Plug takes weight. Test good. 15:40 - 16:35 0.92 RUNPU ELEC PR1EVL POOH. 16:35 - 17:15 0.67 RURD_ ELEC PR1 EVL OOH. Rig down. 17:15 - 21:30 4.25 RURD_ ELEC PR1 EVL Secure well for the night. Verify PT on tree cap connection. Turn in permit. Sign out and leave locaton. Close and lock gate. 11/20/2007 08:00 - 08:30 0.50 SAFETY MTG_ CMPPRF Arrive on location, obtain work permit and sign in. Hold PJSM. Discuss Expro JSA and job scope. 08:30 - 09:30 1.00 RURD ELEC CMPPRF RU lubricator. PU 14' of 3-3/8" 6 spf, 60 degree phased guns. PU tool Printed: 12/20/2007 8:43:32 AM ~. Marathon Oil Company Page 5 of 5 Qpera#ions Summary Report Legal Well Name: GRASSIM OSKOLKOFF 5 Common Well Name: GRASSIM OSKOLKOFF 5 Spud Date: 1/15/2007 Event Name: ORIGINAL COMPLETION Start: 3/8/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Cod Phase Description of Operations 11/20/2007 08:30 - 09:30 1.00 RURD_ ELEC CMPPRF string. 09:30 - 09:45 0.25 SAFETY MTG_ CMPPRF Hold explosive safety meeting and inform all pad workers of explosive operations, cellphones and welders are turned off. Post placarding and post guard at the gate. 09:45 - 10:10 0.42 RURD_ ELEC CMPPRF Arm and PU 14' - 3-3/8" - HSC 6spf, 60 degree phased - perF gun. 10:10 - 10:30 0.33 TEST_ EQIP CMPPRF PU lubricator and 14' pert gun. Pressure test Lubricator to 2500 psig, Test good 10:30 - 11:40 1.17 RUNPU ELEC CMPPRF RIH with 1542 psi on well 11:40 - 11:45 0.08 RUNPU ELEC CMPPRF Tag CIBP @ 9280' 11:45 - 11:50 0.08 RUNPU ELEC CMPPRF Pull into position and bleed well down to 1522 psi (SCADA). 11:50 - 12:00 0.17 PERF_ CSG_ CMPPRF Shoot gun p~,9221'-9235' (OH) - 9219'-9233' (CH) (2 foot off depth from coorelation), POOH. Lost a little weight on the tool string when we perforated. Time: Pressure:(SKADA) 1150 1522psi 1200 1526psi 1230 1522psi 1300 1518psi 13:00 - 14:00 1.00 RURD_ ELEC CMPPRF OOH, Lay down tools, Inside of the Gun body was wet. Shot in fluid. 14:00 - 14:10 0.17 RURD ELEC CMPPRF Move over to GO #6. Printed: 12/20/2007 8:43:32 AM Maunder, Thomas E (DOA) From: Ibele, Lyndon [Icibele@marathonoil.com] Sent: Monday, December 17, 2007 11:37 AM To: Maunder, Thomas E (DOA) Subject: Sundry status Page 1 of 1 Tom-- FYI, just wanted to let you know that we have had an on-going, company-wide IT problem that may affect our ability to file sundry notices timely for a few wells. The data-base system that is used to generate all of our downhole activity reports crashed on December 8th, and all the king's horses and all the king's men haven't been able to put Humpty-Dumpty back together yet and we have been given no timeline for completion. 0~ -~Q ~ We know we are close to the 30 day deadlines for submitting Form 404 for recent work performed on Wells G03 and G05, and the 407 for G06. However, should the afore-mentioned database not be functional in the next few days, we will be unable to retrieve operations summaries that are required with the sundries, and it is likely these sundry reports could be tardy. I will keep you posted if that looks likely to occur. RE Forms 10-421, there are several pending. However, we have not yet achieved stable production rates and have been unable to perform multi-point tests on Sterling Unit wells 41-15rd and 43-9x. Those tests will be performed and submitted as soon as possible. For Wells NS-3 and GO-6, we have single-point tests only to report, because the wells are producing at maximum capacity but at very low rate. The only means to achieve multiple flow points would require that the wells be choked-back, but doing so would cause them to be produced below the unloading rate. This would not only be meaningless from amulti-point test perspective, but would also jeopardize .killing the wells. We will submit a cover letter with this explanation when we submit the form 10-421 for these two wells. ~~ 4/9/2009 , T • • ~~Q~[~ 0~ Q~Q~aQ / ~...~~ao~„~ ~~ O~ ~ G~ 333 W. 7th AVENUE, SUITE 100 COI~SERQA~'IOI~T CO1rII~'II5SIOIQ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907} 276-7542 Dennis Donovan Production Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611-1949 Re: Ninilchik Unit, Tyonek Gas Pool, Ninilchik Unit - Grassim Oskolkoff #5 Sundry Number: 307-312 Dear Mr. Donovan: 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 October, 2007 Encl. Sincerely, STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMM SION APPLICATION FOR SUNDRY APPROVALS ~n nnr. ~~ stn F ~, .. . 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ Waiver ^ Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate Q Time Extension ^ Run Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ Stim Tubes 2. Operator Name: hAarathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ^ Exploratory ^ 207-001 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20565-00-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ Ninilchik Unit - Grassim Oskolkoff #5 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL 389737 21' AGL Ninilchik Unit - T onek Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 10384' 7987' 9960' 7567' N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 81' 20" 81' 81' 3,060 1,500 Surface 2264' 9-5/8" 2264' 1912' 5,750 3,090 Intermediate 6730' 7" 6730' 4365' 7,240 5,410 Production Liner 3607' 4-1/2" 6492'-10099' 4147'-7705' 8,440 7,500 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9307'-9337' 6915'-6945' 4-1 /2" L-80 6492' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer w/ Tie Back Extension 6492' top 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: Oct 17th 2007 Oil ^ Gas ^~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283-1371 Printed Name Dennis Donovan Title Production Engineer Signature Phone 907-283-1333 (W) 907- Date 10/10/2007 • 398-1362 (Cell) COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~ ~ ~../~ ~, Plug Integrity ^ BOP Test ^ Mechanica l Integrity Test ^ Location C learance ^ \ Other: S~.-. / ~= ~ ~O~ Q~ V~1 P 1`r~fc+~"t v C \ DEC- c~ Q.psL~ S• v <S~ , ` (3'oP '~ sir-cs ~ \ c,.~~E~ . Subsequent Form Required: ~O APPROVED BY Approved by: C ISSIONER THE COMM SSI D ! D~~ . D Form 10-403 Revised 06/2006 ('1 ("~ ~ n' n I Submit in Duplicate Marathon Oil Company M marathon Alaska Asset Team P.O. Box 1949 MARATHON Q~~ Carnpany Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 October 10, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission -- 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals -Run Stim Tubes Field: Ninilchik Unit -Grassim Oskolkoff Pad Well: Grassim Oskolkoff #5 (PTD-207-001) Dear Mr. Maunder: Enclosed is the 10-403 sundry requesting to run StimTube in Grassim Oskolkoff #5 (GO #5). Marathon intends to stimulate existing perforations at 9307' to 9337' MD (30' interval). After perforating this interval with conventional guns, the well pressure did not change. It is Marathon's contention that we simply did not have sufficient contact with the reservoir. We propose to run a solid propellant stick, StimTube, on electric line and detonate it across from the perforated interval. This type of stimulation develops a great deal of pressure within a very short time frame. The end result expected. is to break down the perforations and establish contact with the reservoir. Attached with the 10-403 is the detailed operations program, current wellbore diagram and proposed wellbore diagram. Please send any sundries or pertinent documentation to Kevin Skiba at the above address listed. If you have any questions or need further information please call me at (907) 398-1362. Dennis Donovan Production Engineer Enclosures: 10-403 App. For Sundry Approvals cc: AOGCC Detailed Operations Program Houston Well File Current Well Schematic Kenai Well File Proposed Well Schematic DMD KJS • M MARATHON OIL COMPANY MARATHON ALASKA REGION Ninilchik Field Grassim Oskolkoff No. 5 Stimulate WBS # DD.06.14432.CAP.CMP.02 Objective: Stimulate from 9307' - 9337' (30') using 2" Stim Tube 1) MIRU Pollard Wireline Unit and Mast Truck a. Hold PJSM and complete Work Permit form b. PU and Roundtrip with 3.50" OD Blind Box to tag PBTD. c. PU and Roundtrip a 1-11 /16" OD memory P-T gauge on slickline to record static BHP and fluid level. MIRU BJ Coil Tech pumping unit. d. Hold PJSM and complete Work Permit form. e. MI rig up BJ Coil Tech pumping unit. f. Pu1160 bbls 60%KCL on vac truck. g. Pump 3000' of 6%KCL above perforations. Approximately (46 bbls) down tubing prior to stimulating the zone. h. RD pumping unit. Move out BJ pumping unit. MI Rig up Expro America i. Hold PJSM and complete Work Permit form. j. Install 3-1/8", SKcrescent-shaped flange with 6-1/2" Otis connection to tree. k. Install BOPE with pump in sub to 6-1/2" Otis connection. 1. MU sufficient lubricator for 30' of 2.0" stim tube perforating gun. m. MU 2.5" - 12' StimTube. MU CCL 10' 2.0" OD n. Prior to arming go to Communication Black out on Pad. PU and go to well with gun. o. Test BOPE and lubricator to 250/3500 psi with methanol water. p. RIH and position StimTube across middle of perforated interval, 9307'- 9337' MD. Initiate StimTube firing sequence. q. POOH with gun after stimulation. Note rate of surface pressure build for 15 minutes. r. POOH. s. Replace tree cap flange connection. t. RDMO Expro. 2) Flow well to production facility. Ninilchik Unit 3083' FSL 8r 2988' FEL Sec. 23-T1 N-R13W S.M. • M MARATHON Updated 8123/2007 by KDW Conductor 20" K-55 133 ppf TOD Bottom MD 0' 81' TVD 0' 61' KOP ~ 800' MDffVD Bulld 5.0 deg1100' from 800-2140' MD Hold 67 deg from 2140.4440' MD Drop 2 dag1100' to 7790' MD Hold 0 deg hom 7790' to TD at 10388' MD AaJmuth: 342.22 dsg. nq smog - v.o~, iz.os, L-tsu, tlURreaa MOd nq String - 4.5, 12.6#, L-80, Hydril 533/583 x Chemical Injection Nppb ~ 2415' MD (Top) 5.930' OD/3.858' ID 8430 psl bursU7500 psi c011apse Liner Packer wah 15' Tieback Extension ~ 6497 MD (Top) Lock Liner Hanger (~ 6530.5' lu1D (Top) er Joint Top ~ 7451' MD (19.39' bog) valve ~ 8420' KB (2.52' long) 6028' TVD er Jdnt Top @ 9249' MD (19.35 loop) ing Coaar ~ 9877 MD (Top) Coaar ~ 10,014' MD (Top) Shae (~ 10,098.4' MD (Bottom) • PE Surface Caslna 9.518" 40 ppf L-80 BTC TOD Bottom MD 0' 2264' TVD 0' 1912' 12-1/4" hde with 532 sks (232 bbla) 1T ppg cement with 90 bbls cement to surface. Intermediate Caalnc 7" 28 ppf P-110 & L-80 BTC P-110 from 4293'610' MD I3~ a°nom MD 0' 6730' TVD 0' 4365' 8.1/2" hole with 258 aka (114 bbla) 12.5 ppg Lead + 160 sks (34 bbla) 15.8 ppg Tall Bumped plug, 20 bbl spacer to surface, 100% returns, floats held 30 tt 6816~84b' Owen 33/8" 8 SPF 6/30/2007 P. Bond looks good-excellent9950-8590', fair 8590-8460', poc and fair-good 8110.8492' (TOC Ia at ZXP packer at 6492' MD). Net Ft TVD Eat SBHP 19 tt 8889.8808' 3240 psi 23 R 8818.6842' 3209 psi 28 tt 8360.8378' 2991 psl 30 tt 6760-8810' 3194 psi 28 tt 6412-8438' 3079 psi Tagged PBTD at 9956' CTMD with coiled tubing on 3/11/2007. Tagged PBTD at 9960' ELMD with aline on 9/28/2007 TD: 10,384' MD / 7987' TVD Formatton Topa: F rm tin peoth IMDI Deoth (TVD) Beluga Tyonek TD Liner 4.1/2" 12.6 ppf L$0 Hydril 563 Too Bottom MD 5592 10099 TVD 4237 7705 7" hole 1 at Stage - 20 bbl 10 ppg spacer followed by 145 sks (77 bbis) 10.5 ppg cement Displace with 30 bbls 6 % KCL water + 93 bbla 9.5 ppg mud 100% Returns with 20 bbla spacer and 10-15 bbis cement to surface. 2nd Stage - 132 sks (68.5 bbls) 10.5 ppg cement Displace with 30 bbis 6 % KCL water * 69.6 bbls 9.5 ppg mud 100 % Returns with 10 bbla cement to surface. • KOP @800' MDlTVD Build 5.0 degI100' from 800.2140' MD Hold 67 deg tram 21104440' MD Drop 2 degI100' to 7790' MD Hold 0 deg from 7790' to TD at 10388' MD Azimuth: 342.22 dag. Grassim Oskolkoff #5 Ninilchik Unit 3083' FSL 8 2988' FEL Sec. 23-T1 N-R13W S.M. PROPOSED STIM TUBE ng String - 4.5-, 72.6itl, L-80, Buttress Mod ng 361ng • 4.5', 12.6p. L-00, Hydril 5331563 r Chemical InjecSOn Nippb (~ 2415' MO (Top) 5.990" ODJ3.858" ID 8430 psitwrsU7500 psico8epse Liner Packer wdh 15' Tieback Extension @8497 MD (Top) Lock liner Hanger @6530.5' MD (Top) er Joint Top @ 7451' MD (19.39' long) valve @ 8420' K8 (2.5T bng) 8028' TVD er Joint Top @ 9249' MD (19.35' kxg) Irg CoMer @ 997T MD (Top) Collar @ 10,014' MD (Top) Shoe @ 10,099.4' MD (Bottom) Proposed S timulation of Ex istinD Tvonek Per fs: 307-9337' 30 1 X945' 2" Sti mT un '0'. Bond looks goodexcellent 9950-8580', fair 8580-8460', poor ', and fair-good 8110-6482' (TOC la at ZXP packer at 6492' MD). • M ~wmton Updated 10I10f2007 by DMD Conductor 20" K-55 133 ppf Ton Bottom MD 0' 81' TVD 0' 81' PE Surface Caalna 9.518" 40 ppf L-80 BTC T~ B M D 0' 2264' TVD 0' 1912' 12.1/4" hole with 532 sks (232 bbla) 12 ppg cement with 90 bbla cement to surface. Intermediate Casino 7" 26 ppf P-110 & L$0 BTC P-110 from 4293'-6610' MD Too Bottom M D 0' 6730' TVD 0' 4365' 8-1/2" hole with 256 sks (114 bbla) 12.5 ppg Lead + 160 aka (34 bbls)15.8 ppg Tall Bumped plug, 20 bbl spacer to surface, 100% retuma, floats held 30 tt 6816-6946' Owen 3-3/8" 6 SPF 6/3012007 MD Net Ft TVD Eat SBHP niarv 1-9300', 19 tt 6888908' 3240 psi 1.8234', 23 tt 8818-b842' 3209 psi 2.8770', 28 tt 8360.6378' 2991 psi 30 tt 6780-6810' 3194 psi 26 tt 8412.6438' 3019 psi rn i u at asap ~ i mu vnm cones tuomg on si PBTD at 9960' ELMD with aline on 9/28/2007 TD: 10,384' MD 17987' TVD Formatlon Tops: Formation Depth IMDI Dents (TVD1 Beluga Tyonek TD Liner 4-112" 12.6 ppf L-80 Hydrll 563 Too Bottom MD 6592 10099 TVD 4237 7705 7" hole tat Stage - 20 bbl 10 ppg spacer followed by 145 sks (77 bbls) 10.5 ppg cement Displace with 30 bbls 6 % KCL water + 93 bbls 9.5 ppg mud 100 % Retums with 20 bbls spacer and 10-15 bbls cement to surface. 2nd Stage - 132 sks (68.5 bbls) 10.5 ppg cement Displace with 30 bbls 6 % KCL water * 69.6 bbls 9.5 ppg mud 100 % Retums with 10 bbls cement to surface. RE: GO #5 PTD #207-001: Regulatory Reporting Requirements Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, August 31, 2007 3:33 PM To: 'Walsh, Ken' Subject: RE: GO #5 PTD #207-001: Regulatory Reporting Requirements Page i of 2 Sorry about that Ken. I confirm our conversation. Since there has been some time since the initial perforating, it is appropriate to submit a 403 for the stim-tube work. All the activities can be covered by the same 407. Hopefully there will be gas flow to report as well. Call or message with any questions. Tom Maunder, PE AOGCC Prom: Walsh, Ken [mailto:kdwalsh@marathonoit.com] Sent: Friday, August 31, 2007 3:28 PM To: Maunder, Thomas E (DOA) Subject: RE: GO #5 PTD #207-001: Regulatory Reporting Requirements Tom, I have not heard back from you regarding my email below. Do you concur with the summary of our conversation? ~~ Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) From: Walsh, Ken Sent: Thursday, August 23, 2007 1:35 PM To: Thomas Maunder' Subject: GO #5 PTD #207-001: Regulatory Reporting Requirements Tom, I have tried to summarize (below) our conversation this morning and provide detail concerning sundry reporting requirements for the Grassim Oskolkoff #5 completion. Marathon released the drilling rig on 2/19/2007 after drilling, running and cementing a production liner, and running a production tie-back string. The well was perforated on 5/30/2007 in one single Tyonek interval, 9307'-9337' MD. The non-rig related completion work including running the CBL, jetting the well dry, and perforating is covered in the drilling 8131/2007 RE: GO #5 PTD #207-401: Re latory Reporting Requirements ~ Page 2 of 2 prognosis submitted with the approved Permit to Drill application. After perforating this interval, the well pressure did not change. It is Marathon's contention that we simply did not have sufficient contact with the reservoir. We propose to run a solid propellant stick, StimTube, on electric line and detonate it across from the perforated interval. This type of stimulation develops a great deal of pressure within a very short time frame. The end result expected is to break down the perforations and establish contact with the reservoir. We anticipate that this technique may also be required on Tyonek intervals uphole in this same wellbore. We will cover this contingency in our 10-403 application. You and 1 discussed this morning that Marathon would be required to submit a Form 10-403 application to run the StimTube to try to establish flow from the perforations in the GO #5 well. We also agreed that Marathon would be required to submit a Form 10-407 to cover the original completion work (perforating the Tyonek intervals} and the StimTube work proposed under the Form 10-403. A Form 10-404 would not be required for the work described herein. I look forward to your response, .7leii Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) 8/31/2007 • M Marathon MARATHON OII C0111pc1n~/ • Alaska Asset Team United States Production Organization P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3597 Fax 713-235-6322 ~~ July 2, 2007 Alaska Oil & Gas Conservation Commission FedEx Attn: Howard Okland 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Grassim Oskolkoff No. 5 (GO-5); API# 50-133-20565-00 CONFIDENTIAL Dear Mr. Okland: ~!~ Alaska flfi ~. ley ,~~~~~. G~rrritnission An~i~arapR ~~ \ The following confidential digital well data are enclosed for the above referenced well. GO-5 As-Built Plat .................................................................................................................. digital Daily Drilling Reports .................................................................................................... digital Directional Survey ......................................................................................................... digital EPOCH Mud Log Data .................................................................................................. digital Weatherford Well Log Data ........................................................................................... digital One CD containing digital well logs and above data (see attached CD contents)..........digital Please indicate your receipt of this data by signing below and returning one copy to my attention at the above address or fax to 713-235-6322. Thank you, ~_ Courtney McElmoyl Advanced Geoscience Technician Enclosures Received by: Date: CD Director: ............................... . I Directional Data l ......................................... Mudlog i~ Wireline Data ""~`" Gd-5 As-BuiR Plat 11-2-06,pdf ~GO-5_Daily Operations.xls Directional Data: ....................................................... iG05_aogcc dir sur.dat Mudlog: 1(~DML DATA Ij~FINAL WELL REPORT i;~LAS FILE FLOG PDF FILES Ij~MORNING REPORTS REMARKS FILE Wireline Data: ij~GOS~RUN_I I~GOS_RUN_2 GOS Runl: ......mm DPK i U ~ ............ ~'PDF 1=1 348904 1-Marakhon GO5 runl,las 3489041-COMP.pbm.gz 3489041-DEN,pbm,gz 3489041-IND.pbm.gz 3489041-INDTVD.pbm.gz 3489041-SONIC.pbm,gz GOS Runl: I~DPK .exe 3489042-Composite-MD. pbmgz 3489042-Density-MD.pbmgz 3489042-Induction-MD, pbmgz 3489042-Induction-TVD,pbmgz 3489042-MFT,pbmgz 3489042-Sonic-MD. pbmgz • GO-5 API 50-133-10091-01 CD CONTENTS Confidential Re: New Well 10-403 Application-GO #5 (2~1) Subject: Re: New Well 10-403 Application-GO #5 (207-001) From: Thomas Maunder <tom maunder@admin.state.ak.us> Date: Fri, 09 Mar 2007 11:24:03 -0900 To: "Walsh, Ken" <kdwalsh@marathonoil.com> Ken, Including the plans for after rig work in the drilling permit application will be fine. You mentioned that any drillout work will be with coil and that BOP tests are performed as required. With regard to send in those reports, I would expect that your Foreman would be in contact with the Inspectors regarding an opportunity to witness a BOP test. I don't know how often an Inspector might be able to witness a test, but I do know that they do witness an occasional coil test. I would think that your contractor as well as Marathon would maintain files with the test records. Good luck with the well operations. Call or message with any questions. Tom Maunder, PE AOGCC Walsh, Ken wrote, On 3/9/2007 10:49 AM: Tom, A couple of weeks back during one of our telephone conversations, the topic of filing a Form 10-403 application for new completions in the Ninilchik wells came up. I told you that Winton Aubert was not requiring Marathon to file the 10-403 in this case if it was a similar completion style to those in the past. He wanted a small description of the intended completion inserted in the drilling prognosis filed with the 10-401 for the well. This description would be something like what was placed in the Grassim Oskolkoff #5 and the Ninilchik State #3 drilling applications. The description for the NS #3 is as follows: The completion will encompass work to run a cement bond log, displace the KCL water in the wellbore with nitrogen, perforate several Tyonek intervals, and test the well for rate and pressure. No stimulation of the perforating intervals is anticipated. Therefore, Marathon has not been submitting a 10-403 for new well completions for our Ninilchik area wells but we do submit the 10-407 following the work. My question is how do you wish me to handle this in the future? We are currently setting up to drill out the DV tool and log the CBL on the GO #5 over this weekend. We do not intend to perforate for a week or two. ';' Regards, Ken Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) s SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company PO Box 3128 Houston, TX 77253 Re: Ninilchik Unit, Tyonek Gas, Grassim Oskolkoff P.A., Grassim Oskolkoff #5 Marathon Oil Company Permit No: 207-001 Surface Location: 3,083' FSL, 2,988' FEL, SEC. 23, T1N, R13W, S.M. Bottomhole Location: 2,146' FSL, 4,381' FEL, SEC. 14, T1N, R13W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Marathon Oil Company assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or 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. 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 inspe~ at (907) 659-3607 (pager). Chairman DATED this ~® day of January, 2007 cc: Department of Fish 8s Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ~p~ ALASKA OIL AND GAS CONSERVATION COM~ION ~7 PERMIT TO DRILL ~ l'~,D 20 AAC 25.005 ~~ ~~"~ V~~. '~. %t~p7 ia. Type of Work: 1 b. Current Well Class: Exploratory ^ Development Oil ^ ic. Specify if well is proposed for: ~ •~~'~ +~x Drill Q Redrill ^ Stratigraphic Test ^ Service ^ Development Gas Q Coalbed Methane ^ Gas Hydrates ^ Re-entry ^ Multiple Zone ^ Single Zone Q Shale Gas ^ 2. Operator Name: 5. Bond: Blanket ~ Single Well ^ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 Niniichik Unit - Grassim oskolkoff #5 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 3128, Houston, TX 77253 MD: 10,386 TVD: 7,987 Ninilchik Unit 4a. Location of Well (Governmental Section): 7. Property Designation: Tyonek Pool Surface: 3,083' FSL, 2,988' FEL, Sec. 23, Ti N, R13W, S.M. ADL 389737 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1,537' FSL, 4,186' FEL, Sec. 14, Ti N, R13W, S.M. January 12, 2007 Total Depth: 9. Acres iri Property: 14. Distance to Nearest 2,146' FSL, 4,381' FEL, Sec. 14, Ti N, R13W, S.M. 3,096 Property: 2127'(ADL3aa3os) 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x - 229,026.870 y - 2,255,049.140 Zone - 4 (Height above GL): (21' AGL) 187 feet Within Pool: 1,971 ft to GO #1 16. Deviated wells: Kickoff depth: 800 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 67 degrees Downhole: 3,738 Surface: 1,908 18. Casing Program: Specifications To p -Setting Depth -Bottom Cement Quantity, c.f, or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 L-80 PE 60' 0' 0' 81' 81' 12 1/4" 9 5/8" 40 L-80 BTC 2,235' 0' 0' 2,256' 1,900' 545 sacks 8 1/2" 7" 26 L-80 8TC 6,698' 0' 0' 6,719' 4,344' 426 sacks 7" 4 1/2" 12.6 L-80 Hydril 563 3,386' 6,500' 4,144' 10,386' 7,987' 260 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch Q Drilling Program Q Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat ^~ Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 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 Willar d J. Tank Title Advanced Senior Drilling Engineer // Signature l/~ ~f~/ Phone 713-296-3273 Date January 2, 2007 Commission Use Only Permit to Drill N b ~D~- API Number: ' Permit Approrval See cover letter for other um er: o DO~ -0o 50-~,~ v~b~5 Date: ~ ~~ V - (~ 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^ `, , ~`~~ `` y~ 1 APPROVED BY THE COMMISSION DATE: .~ O~ Q ,COMMISSIONER Form 10-401 Revised 12/2005 ~ ~ f ~~ v ~ ~ 1 V Submit in Duplicate • M Marathon MARATHON Oil Company January 2, 2007 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 '~ ~~~ska + , <:,: :,fnu;r,~~;(~rt ~rt~;i~nr~dg Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit - Grassim OskoNkoff #5 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill) a Tyonek development well. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@marathonoil.com. Sincere) , ' ~~ ~ wzr Willard J. Tank Advanced Senior Drilling Engineer ', Enclosures • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit MARATHON OIL COMPANY DRILLING PROGRAM Grassim Oskolkoff #5 Originator: Will Tank Reviewed by: Pete Berga Brian Roy December 30, 2006 Date r /-Z-~7 Da e Date 1/2/200 CONFIDENTIAL MATERIAL Page 1 of 20 • Grassim Oskolkoff #5 Drilling Program TABLE OF CONTENTS Marathon Oil Company Northern Business Unit 1. Emergency Response Information .................................................................................................................. 4 1.1 Directions to Location ..................................................................................................................................... . 4 1.2 Rig Contact Numbers ..................................................................................................................................... . 4 1.3 Marathon Emergency Response Contacts .................................................................................................... . 4 1.4 Outside Emergency Response ...................................................................................................................... . 4 1.5 Marathon Contact List .................................................................................................................................... . 5 2. Regulatory Agency Contacts ......................................................................................................................... . 5 2.1.1. Internal Regulatory Contact ........................................................................................................................... . 5 2.1.2. External Regulatory Contact ........................................................................................................................... 5 3. Regulatory Compliance ................................................................................................................................... 5 4. Drilling Program Summary .............................................................................................................................. 6 4.1 General Well Data ........................................................................................................................................... 6 4.2 Working Interest Owners Information ............................................................................................................. 6 4.3 Geologic Program Summary ........................................................................................................................... 6 4.4 Summary of Potential Drilling Hazards ........................................................................................................... 7 4.5 Formation Evaluation Summary ...................................................................................................................... 7 4.6 Drilling Program Summary .............................................................................................................................. 8 4.7 Casing Program Summary ............................................................................................................................ 10 4.8 Casing Design ............................................................................................................................................... 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) .:......................................................... 10 4.10 Casing Test Pressure Calculations ............................................................................................................... 12 4.11 Blowout Prevention Equipment, Testing and General Procedures ............................................................... 12 4.11.1. Function Testing ............................................................................................................................................ 12 4.11.2. Pressure Testing ..............................................................................................:............................................ 13 4.12 Wellhead Equipment Summary ................................................................................................................... 13 4.13 Directional Program Summary ...................................................................................................................... 13 4.14 Directional Surveying Summary .................................................................................................................... 14 4.15 Drilling Fluid Program Summary ................................................................................................................... 15 4.16 Drilling Fluid Specifications ........................................................................................................................... 15 4.17 Solids Control Equipment .........................................................:.................................................................... 16 4.18 Cement Program Summary .......................................................................................................................... 17 4.19 Regulatory Waivers and Special Procedures ............................................................................................... 17 4.20 Bit Summary .................................................................................................................................................. 18 4.21 Hydraulics Summary ..................................................................................................................................... 18 4.22 Formation Integrity Test Procedure .............................................................................................................. 19 5. Detailed Drilling Procedure ........................................................................................................................... 19 5.1 Pre -Rig Mobilization .................................................................................................................................... 19 5.2 Conductor (20", +/- 100') ............................................................................................................................... 19 5.3 Drilling 12-1/4" Hole Section (+/- 2,256') ....................................................................................................... 19 5.4 Surface Casing (9-5/8") ................................................................................................................................. 19 5.5 Drilling 8-1/2" Hole (+/- 6,719') ...................................................................................................................... 19 5.6 Intermediate Casing (7„) ............................................................................................................................... 20 5.7 Drilling 7" Hole (+/- 10,386') .......................................................................................................................... 20 5.8 Production Casing Liner and Tie-Back (4-1/2") ............................................................................................. 20 5.9 Completion .................................................................................................................................................... 20 1/2/2007 CONFIDENTIAL MATERIAL Page 2 of 20 • Grassim Oskolkoff #5 Drilling Program • Marathon Oil Company Northern Business Unit Attachments Grou Attachment Attached Commercial Information AFE Da s/Cost vs. De th Curves X Pro'ect Ob'ectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulato / HES Information Emer enc Evacuation Plan X H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations Risk Anal sis Miscellaneous Pro rams Vendors) Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead E ui ment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Tem erature Curves Geolo is Structure Ma s Geolo is Cross Section Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee in Anal sis -Moorin /DP n/a Stress Check Casin Desi n File X Maximum Allowable Over ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 1/2/2007 CONFIDENTIAL MATERIAL Page 3 of 20 • Grassim Oskolkoff #5 Drilling Program 1. Emerqencv Response Information 1.1 Directions to Location • Marathon Oil Company Northern Business Unit Method Directions Air Latitude - 60°09'51.688"N Longitude - 151 °29'15.781 "W From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go 16.9 miles. Turn South on Sterling Highway, go 14.4 miles. Turn West onto road to the pad (Sterling Highway milepost 124.1). 1.2 Rip Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emerqencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emerqencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 4 of 20 • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Scott Szalkowski Geologist 713-296-3390 713-301-9834 Clyde Scott Reservoir Engineer 713-296-2336 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 Dan Byrd Drilling Supervisor 907-283-1312 907-283-1313 John Nicholson Drilling Supervisor 907-283-1312 907-283-1313 2. Requlatorv Agency Contacts 2.1.1. Internal Requlatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Re ulato Com liance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Requlatorv Contact ~ ~~ ,8~~r~~~ ~S Contact Title Office Phone Facsimile 24 hr Emer enc Pa er AOGCC ~,~88-#~' BLM 907-267-1442 3. Regulatory Compliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 a 10 F Requirement fora 24 hour notice to AOGCC prior to BOP test. Comments 1/2/2007 CONFIDENTIAL MATERIAL Page 5 of 20 Grassim Oskolkoff #5 Drilling Program 4. Drilling Program Summary 4.1 General Well Data Marathon Oil Company Northern Business Unit Well Name Grassim Oskolkoff #5 Lease /License Surface Location 3,083' FSL, 2,988' FEL, Sec. 23, Ti N, R13W, S.M. WBS Code DD.06.14432.CAP.DRL Slot/Pad Pad sim Oskolkoff Field Ninilchik Unit Spud Date 01/12/07 (est.) KB (above MSL) 187' County/Province Kenai Peninsula API No. GL (above MSL) 166' State /Country Alaska Permit No. Perm. Datum KB Total MD 10,386' Well Class Development Water Depth N/A Total TVD 7,987' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 60% P.O. Box 196168 907-561-5311 907-565-3076 Anchora e, AK 99519-6168 Chevron -Texaco 40% 4.3 Geologic Program Summary Surface Location Coordinates From Lease/Block Lines 3,083' FSL, 2,988' FEL, Sec. 23, T1 N, R13W, S.M. Latitude 60° 09' 51.688" N Longitude 151 ° 29' 15.781 " W UTM North (Y) 2,255,049.140' UTM East (x) 229,026.870' Tolerance Pore Pore MD -RKB TVD -RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Tyonek (Primary Target) 5,839 3,587 3.80 - 9.00 Sandstone Gas 1/2/2007 CONFIDENTIAL MATERIAL Page 6 of 20 • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit Depth (KB) Horizontal Displacement (ft) Target MD (ft) TVD (ft) Location +N/-S (Y) +E/-W (X) Tolerance (ft) Tyonek T-1 5,389 3,587 1,537' FSL, 4,186' FEL, Sec. 14, Ti N, R13W, S.M. 3,734 -1,198 Circle 250' radius Tyonek T-2 6,765 4,387 .1,973' FSL, 4,325' FEL, Sec. 14, T1 N, R13W, S.M. 4,170 -1,337 Circle 250' radius Tyonek T-3 8,286 5,887 2,146' FSL, 4,381' FEL, Sec. 14, Ti N, R13W, S.M. 4,343 -1,393 Circle 250' radius TD 10,386 7,987 2,146' FSL, 4,381' FEL, Sec. 14, Ti N, R13W, S.M. 4,343 -1,393 Circle 250' radius 4.4 Summary of Potential Drilling Hazards Hazard Event Depth KB (TVD) Discussion Precautions Bit or BHA balling Surface Hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Excessive Torque Intermediate & Production Use good hole cleaning techniques with high pump Excessive pumping on bottom could Hole rates. Add lubricant where necessary. result in hole washout. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H2S is anticipated. Gas sands will be encountered from +/- 5,389' MD (3,587' TVD) to total depth of the well. These sands will run from slightly depleted to slightly above normal pressure. The Flo-Pro mud system that will be properly weighted to hydraulically control all sands and lost circulation materials will be available on location, if required. Best Practices: 1 Comments: 4.5 .Formation Evaluation Summarv Interval LWD .Electric Logs Mud Logs Surface None None None 0' - 2,256' MD Intermediate None Reeves Quad Combo. Pull GR-Neutron to Basic with GCA, shale density, temperature in and 2,256' - 6,719' MD surface inside casing. out, sample collection (10' samples). Production None Reeves Quad Combo, MFT, Formation ' Basic with GCA, shale density, temperature in and 6,719 - 10,386' MD Imager. Pull GR-Neutron to tie into out, sample collection (10' samples). Intermediate run. Completion N/A GR, CCL, CBL N/A Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 7 of 20 • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 100', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/-100 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 12-1/4" hole to +/- 2,256' set 9-5/8" casing. 1. Drill a 12 1/4" hole to 2,256' MD (1,900' TVD) per the directional plan. 2. Run and cement 9 5/8" casing. 3. Cut off 9 5/8" casing. ND diverter. 4. Install 9 5/8" slip lock connection X 11 " 5M flanged multibowl wellhead. 5. NU 11" 5M X 13 5/8" adapter spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 250/2,500 psi. 6. Set wear bushing. Test surface casing to 2,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 8-1/2" hole to +/- 6,719' set 7" casing. 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 18.5 ppg. 3. Drill 8 1/2" directional hole to 6,719' MD (4,344' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs on drill pipe utilizing the shuttle system. TOOH with logging tool. Pull wear bushing. 6. Change out pipe rams with 7" casing rams in single ram. Run test plug and test casing rams to 2,500 psi. 7. Run and cement 7" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 7" casing rams with pipe rams. Run test plug and test BOP's to 250/2,500 psi. 9. Set wear bushing. Test intermediate casing to 2,500 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Production Liner: Drill 7" hole to +/- 10,386' set 4-1/2" liner. Tie back to surface with 4-1/2" tubing. 1. PU 6 1/8" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to .leak off. Estimated EMW 16.5 ppg. TOOH to change out bit for 7" hole. 3. PU 4 3/4" pilot bit, 6" X 7" DOSRWD2 and directional BHA. 1/2/2007 CONFIDENTIAL MATERIAL Page s of 20 • ~ Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4. Drill a 7" hole to an anticipated TD of 10,386' MD (7,987' TVD) as per the directional program, short tripping as required. 5. At TD circulate hole clean. Make wiper trip. TOOH. 6. RU logging company. Run open hole logs as per plan. RD logging company. 7. TIH w/ 6 1/8" tri-cone bit to TD for wiper trip. TOOH and laydown BHA and drill pipe. Pull wear bushing. 8. RU and run 4 1/2" Hydril 563 casing liner with hanger on drill pipe. Place cementing tool (DV tool) in the liner string so that it will be at approximately 8,465' MD (6,066' TVD). Run liner to TD. On bottom reciprocate and rotate liner while circulating the hole. 9. RU cementing company. Cement is' Stage of 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up set the liner hanger (liner top at approx. 6,500' MD (4,144' TVD)) and then open the DV tool. Circulate hole clean above DV tool. WOC. Cement 2"d Stage. Drop wiper plug to displace pipe and shift DV tool closed. (see detailed DV tool procedure) 10. Circulate hole clean.. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 11. Once cement is either circulated or the liner top is squeezed, PU mill for 4 1/2" along with string mill for 7" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. Polish 4 1/2" liner seal bore. 12. Run 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. TOOH laying down drill pipe. 13. Run 4 1/2" tubing with seal unit. Displace hole with 6 %KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. 14. Rig down and move out drilling rig. Best Practices: 1 Drill out the shoe track with a 61/8" mill tooth or insert bit to eliminate damage to the 6" x 7" RWD system that occurs in the casing where the bit offset causes excessive contact with casing. 2 In order to fully utilize one 6" x 7" RWD system, BOP testing should occur prior to drilling the production section if there is any chance it will be needed during this hole section. 3 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. Comments: Completion: Completion will be done without a rig. The completion will encompass work to run a cement bond log, displace the KCL water in the wellbore with nitrogen, perforate several Tyonek intervals, and test the well for rate and pressure. No stimulation of the perforating intervals is anticipated. Best Practices: 1 Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 9 of 20 Grassim Oskolkoff #5 Drilling Program s Marathon Oil Company Northern Business Unit 4.7 Casing Program Summary MD (ft) Connection A PI Ratings Casing Makeup Hole ~, _. a = o ~, Size Weight ID Drift O. D. Torque Size m a U ~- (in) Top Bottom (Ibs/ft) (in) (in) Grade Type (in) (ft-Ibs) (in) 9 5/8 0 2,256 40 8.835 8.679 L-80 BTC 10.625 N/A ` 12 1/4 5,750 3,090 979 7 0 6,719 26 6.276 6.151 L-80 BTC 7.656 N/A' 81/2 7,240 5,410 667 41/2 6,500 10,386 12.60 3.958 3.833 L-80 Hydril563 5.2 10,080 7 8,430 7,500 288 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. * -Make up buttress connection to proper mark, not to a torque value. Comments: 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface a~ a ~ o Size Weight TVD When Set Grad Press Pressure ~ o (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m U r 9 5/8 40 L-80 1,900 9.4 18.5 8.5 983 2.21 3.33 3.61 7 26 L-80 4,344 10.0 16.5 8.7 1,908 2.21 2.40 2.60 41/2 12.60 L-80 7,987 10.2 16.5 9.0 1,908 1.10 1.77 1.49 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP ` MASP " Mud/Gas (in) (ft) (psi) (psi) Percentage 9 5/8 1,900 3,916 983 30/70 7 4,344 4,932 1,908 30/70 4 1 /2 7,987 4, 932 1,908 30/70 MAWP =Maximum allowable working pressure '* MASP =Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psifft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 1/2/2007 CONFIDENTIAL MATERIAL Page 10 of 20 ~ ~ Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit Surface casing: 9 5/8" (2,256' MD, 1,900' TVD) MASPfrac =((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (18.5 ppg x .052 x 1,900') - (0.1 psl/ft x 1,900') MASPfrac = 1,828 psi - 190 psi MASPfrac = 1,638 pSl. MASPbnP = BHPoPer, Hole fd -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = (8.7 ppg x .052 x 4,344')) - (0.3 x 10.0 ppg x .052 x 4,344') - (0.7 x 0.1 psi/ft x 4,344') MASPbnP = 1,965 psi - 678 psi - 304 psi MASPbnP = 983 psi MASP =MASPbnP = 983 psi MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.4 - 8.3) x .052 x 1,900' MAW P = 4,025 psi - 109 psi = 3,916 psi Intermediate casing: 7" (6,719' MD, 4,344' TVD) MASPfrac =((Fracture gradient at shoe) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (16.5 ppg x .052 x 4,344') - (0.1 psl/ft x 4,344') MASPfrac = 3,727 psi - 434 psi MASPfrac = 3,293 psi. MASPbnP = BHPoPen noie,d -Hydrostatic pressure of a gas column MASPbnP = (9.0 ppg x .052 x 7,987') - (0.3 x 10.2 ppg x .052 x 7,987') - (0.7 x 0.1 psi/ft x 7,987') MASPbnP = 3,738 psi - 1,271 psi - 559 psi MASPbnP = 1,908 psi MASP =MASPbnP = 1,908 psi MAW P = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 7,240) - (10.0 - 9.4) x .052 x 4,344' MAW P = 5,068 psi - 136 psi = 4,932 psi Production liner: 4 1/2" (Top - 6,500' MD, 4,144' TVD) (Bottom - 10,386' MD, 7,987' TVD) MASP = MASP~~~ = 1,908 psi MAW P = MAW P~~~ = 4,932 psi Best Practices: 1 Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 11 of 20 • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.10 Casing Test Pressure Calculations Casing test pressures calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Best Practices: 1 Comments: 4.19 Blowout Prevention Equipment, Testing and General Procedures BOP PROGR AM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 9 5/8 3,916 983 2,500 9.4 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 7 4,932 1,908 2,500 10.0 (1) 135/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 4 1/2 4,932 1,908 2,500 10.2 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 1/2/2007 CONFIDENTIAL MATERIAL Page 12 of 20 ~ ~ Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 11" 3M X 9-5/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 10 3/4" x 7" Fluted Mandrel Tubing Head 11" 3M Studded Bottom X 11" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, U,AA,PSLI,PR1 11" x 4 1/2" Manual Slip Adapter Flange 11" 5M X 4-1/16" 5M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Use a drilling spacer spool on the 9-5/8" casing head to allow for a B-Section contingency. 4.13 Directional Program Summarv Build Turn Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 342.221 0 0 0 2 KOP 800.00 800.00 0 0 0 0 342.221 0 0 0 3 Build up Section 5.00 0 5.00 342.221 4 End of Build 2,140.00 1,854.82 5.00 0 5.00 67.000 342.221 664.83 -213.18 698.17 5 Hold Section 0 0 0 67.000 342.221 6 End of Hold 4,439.99 2,753.50 0 0 0 67.000 342.221 2,680.87 -859.65 2,815.33 7 Drop Section -2.00 0 2.00 342.221 8 End of Drop 7,789.99 5,390.55 -2.00 0 2.00 0.00 342.221 4,342.94 -1,392.61 4,560.75 9 TD 10,386.44 7,987.00 0 0 0 0.00 342.221 4,342.94 -1,392.61 4,560.75 1/2/2007 CONFIDENTIAL MATERIAL Page 13 of 20 ~ • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit GO #5 - Tyanek T1 ~ '~. ~'_ --_---~--GO#5-TymekT2 GO #5 - Tyonek T10 ~ ,~\ ~~ 4000 ~ i ~ I .~ r ~- ~ - i I r GO #5 - TD I GO #5 - Tyanek T3 o soon - i I I _ -_ `, -r-- o _ I ~ __.-----_- _. c --- `~ I ~ GO #5 - Tyanek T90 + I __- - - I L ~ I J Z 2000 ~ I 1000 i 0 I i 0 --- - -------- ... .- -. _ -i --- -3000 -2000 -1000 0 1000 West(-)/East(+) (1500 fUin) cen from surface location to bottom hole location. anticollision analysis for more details. ~lultishot Gyro Multishot Other Survey Tool Remarks VTIAL MATERIAL Page 14 of 20 • Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.15 Drilling Fluid Program Summary Interval -TVD Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, Polypac 0 1,900 8.6 - 9.4 Gel / Gelex Spud Mud Supreme UL, Sodium Meta Bisulfate Flo-Vis, Polypac UL, KCI, SafeCarb 10 & 40, 1,900 4,344 9.4 - 10.0 6% Flo-Pro w/ Safecarb Asphasol Supreme, Lubetex, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 4,344 7,987 9.6 - 10.2 6% Flo-Pro w/ Safecarb 10, Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex Best Practices: 1 Comments: 4.16 Drilling Fluid Specifications Interval -TVD LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (sec/qt) 1 min (Ib./100ftZ) PV (cP) YP (Ib/100 ft2) Fluid Loss (cc) pH Solids (%) 0 1,900 8.6 - 9.4 50 - 75 N/A 25 - 35 NC - 12 +/- 9.5 < 7 1,900 4,344 9.4 - 10.0 20 - 30,000 8 - 12 7 - 9 +/- 9.5 +/- 7.5 4,344 7,987 9.6 - 10.2 20 - 30,000 10 - 14 5 - 7 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for tie-back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of fluid. Comments: See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to control leakoff. • 1/2/2007 CONFIDENTIAL MATERIAL Page 15 of 20 Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.17 Solids Control Equipment o ~ N N ~^ U ~ ;~ (C N ~ ~ N ~ O y ~ N U ~ Y ~ ~ U ~ m m p ~ a`~i a`~i ~ a~i > > ~ m Interval ~ o o ~ U U U N Comments 0 - 10,386' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Shaker 2 -Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 16 of 20 Grassim Oskolkoff #5 Drilling Program Marathon Oil Company Northern Business Unit 4.18 Cement Program Summary De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (in) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) With OFi Excess (ft3) Density LeadlTail (PPg) Open Hole Excess (%) Thickening Time (hrs) 20 81 81 Driven N/A 95/8 2,256 1,900 121/4 0 0 790 1,335 12.0 75 8 7 6, 719 4, 344 8 1 /2 2,100 1, 839 591 834 12.5 / 15.8 40 8 4 1/2 10,386 7,987 7 6,500 4,144 598 777 10.5 / 10.5 30 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty WL FW .Strength (psi) (in) Slurry Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 545 2.45 1,335 0 10.20 Fresh 547 0 183 675 Lead Class"G" 12.5 259 2.47 639 2,100 13.78 Fresh 559 0 92 645 7 Tail Class"G" 15.8 167 1.17 195 5,719 4.99 Fresh 40 0 428 3,437 is` Stage Class "G" 10.5 103 2.99 308 6,500 12.36 Fresh 20 0 50 1,755 4 1/2 2nd Stage Class"G" 10.5 157 2.99 469 8,465 12.36 Fresh 20 0 50 1,755 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. 2 A KCL spacer will be utilized and will be sized to 2/3 of the normal volume (20 bbl) to try and minimize the possibility of bridging in the liner lap. 3 A cementing valve (DV tool) will be placed in the casing string at approximately 8,465' MD (6,066' TVD). This should be set mid-point TVD of the production liner. This is to ensure that hydrostatic pressure stays below expected frac gradients. Comments: See cement prognosis for details and spacer specifications. 4.19 Regulatory Waivers and Special Procedures Regulation Deviation Comments: 1/2/2007 CONFIDENTIAL MATERIAL Page 17 of 20 :] Grassim Oskolkoff #5 Drilling Program 4.20 Bit Summary Marathon Oil Company Northern Business Unit Interval - MD Type Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (Whr) 0 2,256 12 1/4 Christensen MXL-1 117 20 - 50 80 - 300 2,256 6,719 8 1/2 Christensen HCM605 M223 Up to 25 Motor 6,719 10,386 4 3/4 Christensen DOSRWD46.000 M233 3 - 5 100 - 350 Best Practices: 1 Comments: See bit prognosis for additional information. Back up bits for the 8 1/2" hole section will consist of PDC and mill tooth bits. Back up bits for the 7" hole section will consist of 6 1/8" mill tooth and TCI tricone bits. 4.21 Hydraulics Summary Qty Make Model Liner ID (in) Stroke (in) Max Press ~ 90% WP (psi) Displacement ~ 95% Vol. eff (gal/stroke) Max Rate ~ 95% Vol. eff (spm/gpm) Hole Sections Used On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle ~P at Depth-MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32"s) si) Remarks (Drill string configuration) 3 - 18's 0 - 2,256 12 1/4 600+ 1,600 118 9.4 Actual Data from NS #1 (C~ 1,550' MD) 1-16 2,256 - 6,719 8 1/2 500+ 2,150 259 9.4 5 - 15's Actual Data from NS #1 (~ 5,570' MD) 6,719 - 10,386 6 x 7 300+ 2,900 223 9.8 6 - 11's Actual Data from SD #2 (C~ 11,094' MD) Best Practices: 1 Comments: See mud program (Virtual Hydraulics) for additional information. r 1/2/2007 CONFIDENTIAL MATERIAL Page 18 of 20 • Grassim Oskolkoff #5 Marathon Oil Company Drilling Program Northern Business Unit 4.22 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curare departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 5. Detailed Drilling Procedure 5.1 Pre - Rig Mobilization Best Practices: 1 Drill pipe inspection to ..... standard 2 No hard banding on tool joints Comments: 5.2 Conductor (20", +/-100') Best Practices: 1 Comments: 5.3 Drilling 12-1/4" Hole Section (+/- 2,256') Best Practices: 1 2 Comments: 5.4 Surface Casing (9-5/8") Best Practices: 1 Comments: 5.5 Drilling 8-1/2" Hole (+/- 6,719') Best Practices: v2/2oo~ CONFIDENTIAL MATERIAL Page 19 of 20 t ~ Grassim Oskolkoff #5 Drilling Program 1 Directional hole -use of drill pipe screens? Comments: 5.6 Intermediate Casing (7") Best Practices: 1 Comments: 5.7 Drillinp 7" Hole (+/-10,386') Best Practices: 1 Comments: 5.8 Production Casing Liner and Tie-Back (4-1/2") Best Practices: 1 Directional hole -use of drill pipe screens? Comments: 5.9 Completion Best Practices: 1 Comments: Marathon Oil Company Northern Business Unit t/v2oo7 CONFIDENTIAL MATERIAL Page 20 of 20 Marathon Oil Well Grassim Oskolkoff #5 Diverter 21 1/4" 2M Diverter ~ 16" Automatic Knife Valve Diverter Spool 16" Diverter Line r-~ Marathon Oil Well Grassim Oskolkoff #5 BOP Stack Flow Nipple 13 5/8" SM Annular Preventer ~ 13 5/8" 5M Double Ram Preventer Pipe Ram ~~ 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually Operated Valves ~~ ~LN--L_-4-~lJLW-I-~LJ Kill 13 5/8" 5M Cross Pipe Ram 13 5/8" 5M Single Ram Preventer Flow Line Choke • 3 1/8" 5M Manually Operated Valve ~~~ ~ )II II II I ~I II I I 3 1/8" 5M Hydraulically Operated Valve Bottom of Single gate must be 24-45"from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M Drilling Spool ~11"5Mx135/8"5MDSA • Marathon Oil Well Grassim Oskolkoff #5 Choke Manifold From BOP Stack To Gas Buster To Blooey Line Bleed off Line to Shakers • GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT • • 5 4 cLAM ULCh~ 1 X 2 ~'~'Z's CREE ~ FC 4 ~ CO A CREEK 8 9 10 1 1 id 7 s 7 16 GO-1 G X514 13 18 0 21 ~ 2'° ti . ~ 3 2 4 GO-3 ~ - ~~ NS-8 28 2 26 25 30 NS-1 -z ' 3 4 3 31 Northern Ninilchik Area, AK 1 mile N i• i• Marathon Oil Company ~ ':. ~ rj r» vae~ ' - ~ ' - Project: GrassimOskolkoff#5 '1. ~;,~ r."*- - -~.: ..;.- - i ' - ' '~- ~ a., f f r'at'. ~ .xs = ~ ~ + - `~ I ~ N ^ II + t _ ~ r ..~ ~ _ Mo ~ ~_ -r r. ',~~tr 1~_.Yl ~i ~ .~.__ -1 iiMe F'.n; ,~ i i'i 'f~ ~ > `~ '. a~~p Project Location I ~ rf• ~ '> =~'l ;,-°~'"'* - ~ ' ~ .- - - --- °~ SE 1/4, NW 1/4, Sec 23, T1N, R13W ~ f~ J'ti 1 ~ ~~_ ~ ~', __' '~~- - i_~ ~ -•~~ I ffi~~ ~ r~3 ~ - ' '~, is .'' iT---yO' --. es~ - .. - i~ 1, , _~ G~Tv • ~ ~ ~ -iF '"'- -_ ~ A ' !. J"~. ~ SJ '. ~ .. .. -r- ~ , r ~re~ e ~ j.n ~- F - ,.~ 1- ~. ~ ., / ~., t ~ ~ s i '~°~ ~_ ~' t ~ ~ ~~ t i + i .Y-'_ ~a 1 ~ ~- ~; c f ~ ~ -r '' ~~ ,' ~ i 1L 2 y~ ~. r~~ iii ~~~. t - l - / ~~ ' - ~ ~ - ((- ~ ~~ ... L7 ~. ~ ~~~ k ~5 ; ~ ~ { '~IlSGS • Surface Use Plan for Ninilchik Unit -Grassim Oskolkoff #5 Surface location: 3,083' FSL, 2,988' FEL, Sec. 23, T1 N, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Grassim Oskolkoff #5 well and is shown on the attached map. Ninilchik, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Grassim Oskolkoff #5. 3) Location of existing wells Well Grassim Oskolkoff #5 will be drilled on Grassim Oskolkoff pad. A pad drawing is enclosed that shows existing wells and the proposed location of Grassim Oskolkoff #5. 4) Location of existing and/or proposed facilities The locations of existing production facilities on the Grassim Oskolkoff pad are shown on the enclosed pad drawing. A flowline will be installed from the Grassim Oskolkoff #5 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Grassim Oskolkoff #5 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals • • Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Grassim Oskolkoff #5 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Grassim Oskolkoff #5 and the other existing wells on the pad. 10) Surface ownership Marion Oskolkoff is the surface owner of the land at the Grassim Oskolkoff pad. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: / - Z - o ~ Name and Title: ~J~ .l~r~ /~N~ ~ / . w ~ ~ ~--- Willard J. Tank, Advanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 • • T M Project: NINILCHIK Azimuths to TrueNOrth Site: GRASSIM OSKOKOFF PAD Magnetic North: 19.14° Magnetic Field Well: GO 5 Strength:55271.5snT Wellbore: GO 5 - OH Dip Angle: 73.04" MARATHON Date: 10/24/2006 Design: Final INTEQ Plan Model: IGRF200510 REFERENCE INFORMATION Co-ordinate (N/E) Reference: Well GO 5, True North Vertical (TVD) Reference: WELL @ 187.OOft (Original Well Elev) Section (VS) Reference: Slot - (O.OON, O.OOE) Measured Depth Reference: WELL @ 187.OOft (Original Well Elev) Calculation Method: Minimum Curvature LEGEND WELLBORE TARGET DETAILS Name TVD +N/-S +E/-W Shape GO #5 - Tyonek T1 3587.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T2 4387.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T10 4642.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T3 5887.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T90 6837.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 - TD 7987.00 4350.54 -1395.22 Circle (Radius: 250.00) - GO 1, GO 1 - OH, Original wellbore VO GO 2, GO 2 - OH, Original wellbore V1 GO 3, GO 3 - OH, Original wellbore VO - GO 4, GO 4 - OH, OH Original hole VO Final INTEO Plan ~ - -- ' ..-. I -.--: - - -.. .....- , 9 5/8" • ,. , ' - 0 y _ ~" ~: .. - , , ___ 9 5/8" ~ -" -- ~ _ 9 5/8" 9 5/8'8" i0 y GO #5 -Tyonek T1 7 ,' " ~'~ ~O ~ ~ GO #5 -Tyonek T10 . - 3 1/2' - .. ~O ' ' T " - ~ ~„ ~ / ~ ~, ~.. I i ' I `i. . . '~, -.. '` GO #5 -Tyonek T3 -..- ..--.~i-~~' ' GO #5 -Tyonek T90 ~OO 4 1/2" O ~0 .. „ GO #5 - TD 4 1l2" 41/2 _- ~~~~ . 41/2' IgOpO -~.._ . .....-. •. •. ... .. ~~~p0 ..... ..:......... -. .... ., . ~6~ . .. -.-. ~p0 ...... ,5 , .....-.....- ~~~ ,~ ~~~ ~ ,3 G ~ ~OO - ~ L ~ CASING DETAILS DO ~ TVD MD Name Size ~ ~ 1900.00 2255.63 9 5/8" 9-5/8 4344.00 6718.65 7" 7 Q 7987.00 10386.44 41/2" 4-1/2 T M Azimuths to True North Magnetic North: 19.14° Magnetic Field Strength: 55271.SsnT Dip Angle: 73.04° Date: 10/24/2006 Model: IGRF200510 50 100 150 200 250 300 .~ 350 0 0 0 X400 L d N ~ 450 r N a~ ~ 500 H 550 600 650 700 750 800 850 -1000 -500 ~ ~;o~ • Project: NINILCHIK ~'~ Site: GRASSIM OSK~(OFF PAD Well: GO 5 ~n1 Wellbore: GO 5 - OH Design: Final INTEQ Plan 'M' MARATHON WELLBORE TARGET DETAILS I Name TVD +N/-S +E/-W Shape 22 Circle (Radius: 250 00) T k T1 3587 00 4350 54 1395 GO #5 I ' . yone . . - . - GO #5 -Tyonek T2 4387.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T10 4642.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T3 5887.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T90 6837.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 - TD 7987.00 4350.54 -1395.22 Circle (Radius: 250.00) REFERENCE INFORMATION I I 9 ~ /8" Co-ordinate (N/E) Reference: Well GO 5, True North Vertical (TVD) Reference: WELL @ 187.OOft (Original Well Elev) Section (VS) Reference: Slot - (O.OON, O.OOE) Measured Depth Reference: WELL @ 187.OOft (Original Well Elev) Calculation Method: Minimum Curvature j I i I I i GO #5 -Tyonek T1 I 7 A ~ ~ GO #5 -T onek y I GO #5 -Tyonek T1 I GO #5 - Tyonek ~ _ GO #5 - Tyonek T I i 'i -- 4 1/2" -- 0 - - ---- - - -- - --- _ - _ - - -- - --- - ._ ..... -- -- GO #5 - TD - 0 500 1000 1500 2000 250U 3000 35UU 4000 45UU SUUU SSUU Vertical Section at 342.22° (1000 ft/in) T M Azimuths to True North Magnetic North: 19.14° Magnetic Field Strength: 55271.SsnT Dip Angle: 73.04° Date: 10/24!2006 Model: IGRF200510 4001 3001 .E 200 0 O N L 0 100 Z L_ 7 O 100 -200 Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEQ Plan 'M' MARATHON GO#5-TyonekT~ j- LEGEND ~ GO #5 -Tyonek T2 - GO 1, GO 1 - OH, Original wellbore VO ~ ~GQ #5 -Tyonek T90 GO 2, GO 2 - OH, Original wellbore V1 `- GO 3, GO 3 - OH, Original wellbore VO GO #5 - Tl~ - GO 4, GO 4 - OH, OH Original hole VO - Final INTEQ Plan ~ GO #5 -Tyonek T3 WELLBORE TARGET DETAILS Name ND +N/-S +E/-W Shape GO #5 -Tyonek T1 3587.00 4350.54 -1395.22 Circle (Radius: 250.00) _ - __ _ __ GO #5 -Tyonek T2 4387.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T10 4642.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 -Tyonek T3 5887.00 4350.54 -1395.22 Circle (Radius: 250.00) - _ _. GO #5 -Tyonek T90 6837.00 4350.54 -1395.22 Circle (Radius: 250.00) GO #5 - TD 7987.00 4350.54 -1395.22 Circle (Radius: 250.00) ~- - " -- - REFERENCE INFORMATION --- - - - - - - - Co-ordinate (N/E) Reference: Well GO 5, True North - Vertical (ND) Reference: WELL @ 187.OOft (Original Well Elev) I _ Section (VS) Reference: Slot - (O.OON, O.OOE) Measured Depth Reference: WELL @ 187.OOft (Original Well Elev) Calculation Method: Minimum Curvature ' i I - -I -~ I i I --------~- -_ *-- --- -t- ) -- i i i a -- - - ~ _ _ .. _ I ---_ _- ~- - I !-- _.--- - ~ ----- - - ' ~ - - - - -- I - I I i ~ - ~ - • I I I I I I I I I I I I I I I I I I I I I I I I I I i i i ~ ~ ~ ~ ' ~ ~ , , I ~ ~ ~ ~ I ~ ~ ~ ~ I ~ ~ ~ I -10000 -9000 -8000 -7000 -6000 -5000 X000 -3000 -2000 -1000 0 1000 West(-)/East(+) (1200 ft/in) • • MARATHON ALASKA NINILCHIK GRASSIM OSKOKOFF PAD GO 5 GO5-OH Plan: Final INTEQ Plan Standard Planning Report 05 December, 2006 • MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wettbore: GO 5 - OH Design: Final INTEO Plan Marathon Oil Planning Report Local Co-ordinate Reference: TVO Reference: MD Reference: North Reference: Survey Calculation Method: • Well GO 5 WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature Project NINILCHIK, USA Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Site GRASSIM OSKOKOFF PAD Site Position: Northing: 2,255,307.OOft Latitude: From: Map Easting: 229,197.OOft Longitude: Position Uncertainty: 0.00 ft Slot Radius: 0" Grid Convergence: Weli GO 5, 2007 Development WeH Well Position +N/S 0.00 ft Northing: +E/-W 0.00 ft Easting: Position Uncertainty ~___ 0.00 ft Wellhead Elevation: Welibore GO 5 - OH 2,255,049.14 ft Latitude: 229,026.87 ft Longitude: ft Ground Level: 60° 9' 51.688 N 151°29'15.781 W' 166.00 ft Dip Angle Field Strength (°) (nT) 73.044 55, 272 I Tie On De the 0.00 i +E/-W Direction (ft) (°) 0.00 342.221 Magnetics Model Name Sample Date Declination (°) IGRF200510 10/24/2006 19.138 Design Final INTEO Plan Audit Notes: Version: Phase: PROTOTYPE Vertical Section : Depth From (TVD) +N/-S (ft) (ft) 0.00 0.00 Plan Sections Measured Vertical Depth Inclination Azimuth Depth +N/-S +E/-W lft) (°) (°) (ft1 (ft) (ft) 0.00 0.000 0.000 0.00 0.00 0.00 800.00 0.000 0.000 800.00 0.00 0.00 2,140.00 67.000 342.221 1, 854.82 664.83 -213.18 4,439.99 67.000 342.221 2,753.50 2,680.87 -859.65 7,789.99 0.000 243.435 5,390.55 4,342.94 -1,392.61 8,286.44 0.000 243.435 5,887.00 4,342.94 -1,392.61 10,386.44 ~ _ _ 0.000 243.435 _- 7,987.00 4,342.94 -1,392.61 Dogleg Build Turn Rate Rate Rate TFO (°l100ft) (°/100ft) (°1100ft) (°) 0.00 0.00 0.00 0.000 0.00 0.00 0.00 0.000 5.00 5:00 -1.33 342.221 0.00 0.00 0.00 0.000 2.00 -2.00 -2.95 -180.000 0.00 0.00 0.00 0.000 0.00 0.00 0.00 0.000 Target i 60° 9' 54.265 N 151 ° 29' 12.535 W -1.290 ° 12/5/2006 12:05:13PM Page 2 COMPASS 2003.16 Build 42 MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEO Plan Planned Survey Marathon Oil Planning Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well GO 5 WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +FJ-W Section Rate Rate Rate (ft) (°) (°) (ft) (ft) (ft) (ft) (°/100ft) (°I100ft) (°/100ft) ', 0.00 0.000 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ', 100.00 0.000 0.000 100.00 0.00 0.00 0.00 0.00 0.00 0.00 200.00 0.000 0.000 200.00 0.00 0.00 0.00 0.00 0.00 0.00 300.00 0.000 0.000 300.00 0.00 0.00 0.00 0.00 0.00 0.00 400.00 0.000 0.000 400.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 0.000 0.000 500.00 0.00 0.00 0.00 0.00 0.00 0.00 600.00 0.000 0.000 600.00 0.00 0.00 0.00 0,00 0.00 0.00 700.00 0.000 0.000 700.00 0.00 0.00 0.00 0,00 0.00 0.00 800.00 0.000 0.000 800.00 0.00 0.00 0.00 0.00 0.00 0.00 900.00 5.000 342.221 899.87 4.15 -1.33 4.36 5.00 5.00 0.00 ~ 1,000.00 10.000 342.221 998.99 16.58 -5.32 17.41 5.00 5.00 0.00 1,100.00 15.000 342.221 1,096.58 37.18 -11.92 39.05 5.00 5.00 0.00 I 1,200.00 20.000 342.221 1,191.93 65.81 -21.10 69.11 5.00 5.00 0.00 1,300.00 25.000 342.221 1,284.28 102.24 -32.78 107.36 5.00 5.00 0.00 1,400.00 30.000 342.221. 1,372.96 146.19 -46.88 153.52 5.00 5.00 0.00 I ', 1,500.00 35.000 342.221 1,457.27 197.34 -63.28 207.24 5.00 5.00 0.00 1,600.00 40.000 342.221 1,536.58 255.29 -81.86 268.09 5.00 5.00 0.00 1,700.00 45.000 342.221 1,610.28 319.60 -102.48 335.63 5.00 5.00 0.00 1,800.00 50.000 342.221 1,677.82. 389.79 -124.99 409.34 5.00 5.00 0.00 ', 1,900.00 55.000 342.221 1,738.68 465.31 -149.20 488.65 5.00 5.00 0.00 2,000.00 60.000 342.221 1,792.39 545.60 -174.95 572.96 5.00 5.00 0.00 2,100.00 65.000 342.221 1,838.55 630.03 -202.02 661.63 5.00 5.00 0.00 2,140.00 67.000 342.221 1,854.82 664.83 -213.18 698.17 5.00 5.00 0.00 2,200.00 67.000 342.221 1,878.26 717.42 -230.04 753.40 0.00 0.00 0.00 2,255.63 67.000 342.221 1,900.00 766.19 -245.68 804.61 0.00 0.00 0.00 ~ 9 5/8" 2,300.00 67.000 342.221 1,917.34 805.08 -258.15 845.45 0.00 0.00 0.00 2,400.00 67.000 342,221 1,956.41 892.73 -286.26 937.50 0.00 0.00 0.00 ~ I 2,500.00 67.000 342,221 1,995.48 980.39 -314.36 1,029.55 0.00 0.00 0.00 2,600.00 67.000 342.221 2,034.55 1,068.04 -342.47 1,121.60 0.00 0.00 0.00 2,700.00 67.000 342.221 2,073.63 1,155.70 -370.58 1,213.66 0.00 0.00 0.00 2,800.00 67.000 342.221 2,112.70 1,243.35 -398.68 1,305.71 0.00 0.00 0.00 2,900.00 67.000 342.221 2,151.77 1,331.00 -426.79 1,397.76 0.00 0.00 0.00 3,000.00 67.000 342.221 2,190.85 1,418.66 -454.90 1,489.81 0.00 0.00 0.00 3,100.00 67.000 342.221 2,229.92 1,506.31 -483.00 1,581.86 0.00 0.00 0.00 3,200.00 67.000 342.221 2,268.99 1,593.97 -511.11 1,673.91 0.00 0.00 0.00 3,300.00 67.000 342.221 2,308.06 1,681.62 -539.22 1,765.96 0.00 0.00 0.00 3,400.00 67.000 342.221 2,347.14 1,769.28 -567.32 1,858.01 0.00 0.00 0.00 3,500.00 67.000 342.221 2,386.21 1,856.93 -595.43 1,950.06 0.00 0.00 0.00 3,600.00 67.000 342.221 2,425.28 1,944.59 -623.54 2,042.11 0.00 0.00 0.00 ~ 3,700.00 67.000 342.221 2,464.36 2,032.24 -651.64 2,134.16 0.00 0.00 0.00 3,800.00 67.000 342.221 2,503.43 2,119.90 -679.75 2,226.21 0.00 0.00 0.00 ', 3,900.00 67.000 342.221 2,542.50 2,207.55 -707.86 2,318.26 0.00 0.00 0.00 4,000.00 67.000 342.221 2,581.57 2,295.20 -735.97 2,410.31 0.00 0.00 0.00 4,100.00 67.000 342.221 2,620.65 2,382.86 -764.07 2,502.36 0.00 0.00 0.00 4,200.00 67.000 342.221 2,659.72 2,470.51 -792.18 2,594.41 0.00 0.00 0.00 4,300.00 67.000 342.221 2,698.79 2,558.17 -820.29 2,686.46 0.00 0.00 0.00 4,400.00 67.000 342.221 2,737.87 2,645.82 -848.39 2,778.52 0.00 0.00 0.00 4,439.99 67.000 342.221 2,753.50 2,680.87 -859.65 2,815.33 0.00 0.00 0.00 4,500.00 65.800 342.221 2,777.52 2,733.23 -876.44 2,870.31 2.00 -2.00 0.00 4,600.00 63.800 342.221 2,820.10 2,819.39 -904.07 2,960.79 2.00 -2.00 0.00 4,700.00 61.800 342.221 2,865.81 2,904.08 -931.22 3,049.73 2.00 -2.00 0.00 4,800.00 59.800 342.221 2,914.59 2,987.20 -957.87 3,137.02 2.00 -2.00 0.00 12/5/2006 12:05:13PM Page 3 COMPASS 2003.16 Build 42 • MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEO Plan Planned Survey Marathon Oil Planning Report Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: • Well G05 WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/_yy Section Rate Rate Rate (ft) ( °) (°) (ft) (ft) (ft) (ft) (°I100ft) (°/100ft) (°1100ft) 4,900.00 57.800 342.221 2,966.39 3,068.64 -983.99 3,222.55 2.00 -2.00 0.00 5,000.00 55.800 342.221 3,021.14 3,148.32 -1,009.54 3,306.22 2.00 -2.00 0.00 5,100.00 53.800 342.221 3,078.78 3,226.13 -1,034.49 3,387.93 2.00 -2.00 0.00 ~, 5,200.00 51.800 342.221 3,139.24 3,301.97 -1,058.81 3,467.58 2.00 -2.00 0.00 5,300.00 49.800 342.221 3,202.44 3,375.76 -1,082.47 3,545.07 2.00 -2.00 0.00 5,400.00 47.800 342.221 3,268.31 3,447.41 -1,105.44 3,620.31 2.00 -2.00 0.00 5,500.00 45.800 342.221 3,336.76 3,516.82 -1,127.70 3,693.20 2.00 -2.00 0.00 5,600.00 43.800 342.221 3,407.71 3,583.91 -1,149.22 3,763.66 2.00 -2.00 0.00 5,700.00 41.800 342.221 3,481.08 3,648.61 -1,169.96 3,831.60 2.00 -2.00 0.00 5,800.00 39.800 342.221 3,556.78 3,710.83 -1,189.91 3,896.94 2.00 -2.00 0.00 5,900.00 37.800 342.221 3,634.71 3,770.49 -1,209.04 3,959.60 2.00 -2.00 0.00 6,000.00 35.800 342.221 3,714.77 3,827.53 -1,227.33 4,019.50 2.00 -2.00 0.00 '~ 6,100.00 33.800 342.221 3,796.89 3,881.88 -1,244.76 4,076.56 2.00 -2.00 0.00 6,190.22 31.995 342.221 3,872.64 3,928.54 -1,259.72 4,125.57 2.00 -2.00 0.00 GO #5 -Tyonek T1 6,200.00 31.800 342.221 3,880.94 3,933.46 -1,261.30 4,130.73 2.00 -2.00 0.00 6,300.00 29.800 342.221 3,966.83 3,982.21 -1,276.93 4,181.93 2.00 -2.00 0.00 6,400.00 27.800 342.221 4,054.46 4,028.08 -1,291.64 4,230.11 2.00 -2.00 0.00 6,500.00 25.800 342.221 4,143.71 4,071.02 -1,305.41 4,275.19 2.00 -2.00 0.00 6,600.00 23.800 342.221 4,234.48 4,110.96 -1,318.22 4,317.14 2.00 -2.00 0.00 ', 6,700.00 21.800 342.221 4,326.66 4,147.86 -1,330.05 4,355.88 2.00 -2.00 0.00 6,718.65 21.427 342.221 4,344.00 4,154.40 -1,332.15 4,362.75 2.00 -2.00 0.00 7.. 6,800.00 19.800 342.221 4,420.14 4,181.67 -1,340.89 4,391.39 2.00 -2.00 0.00 6,825.79 19.284 342.221 4,444.45 4,189.88 -1,343.53 4,400.02 2.00 -2.00 0.00 GO #5 - Tyonek T2 i, 6,900.00 17.800 342.220 4,514.80 4,212.35 -1,350.73 4,423.62 2.00 -2.00 0.00 7,000.00 15.800 342.220 4,610.53 4,239.87 -1,359.56 4,452.52 2.00 -2.00 0.00 i 7,060.13 14.597 342.220 4,668.55 4,254.89 -1,364.37 4,468.28 2.00 -2.00 0.00 GO #5 -Tyonek T10 7,100.00 13.800 342.220 4,707.21 4,264.20 -1,367.36 4,478.06 2.00 -2.00 0.00 7,200.00 11.800 342.220 4,804.72 4,285.29 -1,374.1.2 4,500.22 2.00 -2.00 0.00 7,300.00 9.800 342.220 4,902.94 4,303.14 -1,379.84 4,518.95 2.00 -2.00 0.00 7,400.00 7.800 342.219 5,001.76 4,317.70 -1,384.52 4,534.25 2.00 -2.00 0.00 ~' 7,500.00 5.800 342.218 5,101.05 4,328.98 -1,388.13 4,546.09 2.00 -2.00 0.00 7,600.00 3.800 342.216 5,200.70 4,336.94 -1,390.69 4,554:46 2.00 -2.00 0.00 7,700.00 1.800 342.211 5,300.57 4,341.59 -1,392.18 4,559.34 2.00 -2.00 -0.01 7,789.99 0.000 243.435 5,390.55 4,342.94 -1,392.61 4,560.76 2.00 -2.00 -109.76 7,800.00 0.000 243.435 5,400.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 7,900.00 0.000 243.435 5,500.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,000.00 0.000 243.435 5,600.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,100.00 0.000 243.435 5,700.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,200.00 0.000 243.435 5,800.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,286.44 0.000 243.435 5,887.00 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 GO #5 -Tyonek T3 8,300.00 0.000 243.435 5,900.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,400.00 0.000 243.435 6,000.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,500.00 i 0.000 243.435 6,100.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,600.00 0.000 243.435 6,200.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,700.00 0.000 243.435 6,300.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,800.00 0.000 243.435 6,400.56 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 8,900.00 0.000 243.435 6,500.56 4,342.94 -1,392.61 4,560.75 0.00 0.00 0.00 9,000.00 0.000 243.435 6,600.56 4,342.94 -1,392.61 4,560.75 0.00 0.00 0.00 12/5/2006 12:05:13PM Page 4 COMPASS 2003.16 Build 42 Marathon Oil M MARATHON Planning Report Database: EDM 2003. 16 Single User Db Local Co-ordinate Reference: Well GO 5 Company: ALASKA TVD Reference: WELL @ 187.OOft (Original Wel l Elev) Project: NINRCHIK MD Reference: WELL @ 187.OOft (Original Wel l Elev) Site: GRASSIM OSKOKOFF PAD North Reference: True Well: GO 5 Survey Calculation Method: Minimum Curvature Wellbore: GO 5 - OH Design: Final INTEO Plan Planned Survey Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +NI-S +E/_W Section Rate Rate Rate (ft) (° ) (°) (ft) (ft) (ft) (ft) (°I100ft) (°/100ft) (°/100ft) 9,100.00 0.000 243.435 6,700.56 4,342.94 -1,392.61 4,560.75 0.00 0.00 0.00 9,200.00 0.000 243.435 6,800.56 4,342.94 -1,392.61 4,560.75 0.00 0.00 0.00 9,236.44 0.000 243.435 6,837.00 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 !, GO #5 -Tyonek T90 9,300.00 0.000 .243.435 6,900.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 ~~ 9,400.00 0.000 243.435 7,000.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 9,500.00 0.000 243.435 7,100.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 9,600.00 0.000 243.435 7,200.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 9,700.00 0.000 243.435 7,300.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 9,800.00 0.000 243.435 7,400.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 9,900.00 0.000 243.435 7,500.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 10,000.00 0.000 243.435 7,600.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 I 10,100.00 0.000 243.435 7,700.56 4,342.94 -1,392.62 4,560.75 0.00 0.00 0.00 10,200.00 0.000 243.435 7,800.56 4,342.93 -1,392.62 4,560.75 0.00 0.00 0.00 10,300.00 0.000 243.435 7,900.56 4,342.93 -1,392.62 4,560.75 0.00 0.00 0.00 10,386.44 0.000 243.435 7,987.00 4,342.94 -1,392.61 4,560.76 0.00 0.00 0.00 41/2" - GO #5 - TD Targets -- - - - - Target Name - hiUmiss target Dip Angle Dip Dir. TVD +N/-S +EI-W Northing Easting - Shape {°) (°) (ft) (ft) (ft) (ft) (ft) Latitude Longitude GO #5 -Tyonek T2 0.00 0.00 4,387.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 178.28ft at 6825.79ft MD (4444.45 TVD, 4 189.88 N, -1343.53 E) - Circle (radius 250.00) GO #5 -Tyonek T3 0.00 0.00 5,887.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 8.03ft at 8286.44ft MD (5887.00 TVD, 4342.94 N, -1392 .61 E) - Circle (radius 250.00) GO #5 -Tyonek T90 0.00 0.00 6,837.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 8.03ft at 9236.44ft MD (6837.00 TVD, 4342.94 N, -1392.62 E) - Circle (radius 250.00) GO #5 -Tyonek T10 0.00 0.00 4,642.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 - plan misses by 103.95ft at 7060.13ft MD (4668.55 TVD, 4254.89 N, -1364.37 E) - Circle (radius 250.00) GO #5 - TD 0.00 0.00 7,987.00 4,350.54 -1,395.22 2,259,430.00 - plan misses by 8.03ft at 10386.44ft MD (7987.00 TVD, 4342.94 N, -1392.61 E) - Circle (radius 250.00) GO #5 -Tyonek T1 0.00 0.00 3,587.00 4,350.54 -1,395.22 2,259,430.00 - plan misses by 527.29ft at 6190.22ft MD (3872.64 TVD, 3928.54 N, -1259.72 E) -Circle (radius 250.00) Casing Points 60° 10' 34.534 N 151 ° 29' 43.364 W !, 227,730.00 60° 10' 34.534 N 151° 29' 43.364 W 227.730.00 60° 10' 34.534 N 151 ° 29' 43.364 W Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (~~) (~~) 2,255.63 1,900.00 95/8" 9-5/8 12-1/4 6,718.65 4,344.00 7" 7 8-1/2 10,386.44 7,987.00 41/2" 4-1/2 7 12/5/2006 12:05:13PM Page 5 COMPASS 2003.16 Build 42 • MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEO Plan Marathon Oil Planning Report Local Co-ordinate Reference TVD Reference: MD Reference: North Reference: Survey Calculation Method: • Well GO 5 WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature 12/5/2006 12:05:13PM Page 6 COMPASS 2003.16 Build 42 • MARATHON ALASKA NINILCHIK GRASSIM OSKOKOFF PAD GO 5 GO5-OH Plan: Final INTEQ Plan • Standard Planning Report -Geographic 05 December, 2006 • MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEO Plan • Marathon Oil Planning Report -Geographic Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well GO 5 WELL @ 187.OOft (Original WeIL Elev) V~/ELL @ 187.OOft (Original Well Elev) True Minimum Curvature Project NINILCHIK, USA Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Site GRASSIM OSKOKOFF PAD Site Position: Northing: 2,255 ,307.00 ft Latitude: 60° 9' 54.265 N From: Map Easting: 229 ,197.OOft Longitude: 151° 29' 12.535 W Position Uncertainty: 0.00 ft Slot Radius: 0" Grid Convergence: -1.290 ° Well GO 5, 2007 Development Well Well Position +N/-S 0.00 ft Northing: 2,255,049.14 ft Latitude: 60° 9' 51.688 N ~ +E/-W 0.00 ft Easting: 229,026.87 ft Longitude: 151 ° 29' 15.781 W ', Position Uncertainty 0.00 ft Wellhead Elevation : ft Ground Level: 166.OOft ~ Wellbore GO 5 - OH Magnetics Model Name Sample Date Declination Dip Angle Field Stre ngth ~- IGRF200510 10/24/2006 19.138 73.044 55,272 Design Final IN TEO Plan i Audit Notes: Version: Phase: PROTOTYPE Tie On Depth: 0.00 Vertical Section: Depth From (TVD) +NI-S +EJ-W Dir ection Ift) {ft) (ft) (°) 0.00 0.00 0.00 34 2.221 Plan Sections Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +NI-S +E/-W Rate Rate Rate TFO (ft) ( °) (°) (ft) (ft) (ft) {°/100ft) (°I100ft) (°/100ft) (°} Target 0.00 0.000 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.000 ~ 800.00 0.000 0.000 800.00 0.00 0.00 0.00 0.00 0.00 0.000 2,140.00 67.000 342.221 1,854.82 664.83 -213.18 5.00 5.00 -1.33 342.221 4,439.99 67.000 342.221 2,753.50 2,680.87 -859.65 0.00 0.00 0.00 0.000 7,789.99 0.000 243.435 5,390.55 4,342.94 -1,392.61 2.00 -2.00 -2.95 -180.000 8,286.44 0.000 243.435 5,887.00 4,342.94 -1,392.61 0.00 0.00 0.00 0.000 10,386.44 0.000 243.435 7,987.00 4,342.94 -1,392.61 0.00 0.00 0.00 0.000 12/5/2006 12:05:34PM Page 2 COMPASS 2003.16 Build 42 Marathon Oil MARATHON Planning Report -Geographic Database: EDM 2003.16 Single User Db Local Co-ordinate Reference: Well GO 5 Company: ALASKA ND Reference: WELL @ 18 7,OOft (Original Well Elev) Project: NINILCHIK MD Reference: WELL @ 18 7.OOft (Original Well Elev) Site: GRASSIM OSKOKOFF PAD North Refe rence: True Well: GO 5 Survey Cal culation Method: Minimum Curvature Wellbore: GO 5 - OH Design: Final INTEO Plan Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth +W-S +E!-W Northing Easting (ft) (°) (°) (ft) (ft) (ft) (ft) {ft) Latitude Longitude 0.00 0.000 0.000 0.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151 ° 29' 15.781 W I, 100.00 0.000 0.000 100.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 200.00 0.000 0.000 200.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 300.00 0.000 0.000 300.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 400.00 0.000 0.000 400.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 500.00 0.000 0.000 500.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151 ° 29' 15.781 W 600.00 0.000 0.000 600.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151 ° 29' 15.781 W 700.00 0.000 0.000 700.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 800.00 0.000 0.000 800.00 0.00 0.00 2,255,049.14 229,026.87 60° 9' 51.688 N 151° 29' 15.781 W 900.00 5.000 342.221 899.87 4.15 -1.33 2,255,053.32 229,025.63 60° 9' 51.729 N 151° 29' 15.808 W 1,000.00 10.000 342.221 998.99 16.58 -5.32 2,255,065.83 229,021.93 60° 9' 51.852 N 151° 29' 15.886 W 1,100.00 15.000 342.221 1,096.58 37.18 -11.92 2,255,086.58 229,015.79 60° 9' 52.054 N 151° 29' 16.017 W 1,200.00 20.000 342.221 1,191.93 65.81 -21.10 2,255,115.41 229,007.26 60° 9' 52.336 N 151° 29' 16.198 W 1,300.00 25.000 342.221 1,284.28 102.24 -32.78 2,255,152.09 228,996.40 60° 9' 52.695 N 151° 29' 16.429 W 1,400.00 30.000 342.221 1,372.96 146.19 -46.88 2,255,196.35 228,983.30 60° 9' 53.128 N 151° 29' 16.708 W 1,500.00 35.000 342.221 1,457.27 197.34 -63.28 2,255,247.86 228,968.05 60° 9' 53.632 N 151° 29' 17.032 W 1,600.00 40.000 342.221 1,536.58 255.29 -81.86 2,255,306.21 228,950.78 60° 9' 54.202 N 151° 29' 17.399 W 1,700.00 45.000 342,221 1,610.28 319.60 -102.48 2,255,370.97 228,931.61 60° 9' 54.836 N 151° 29' 17.807 W 1,800.00 50.000 342,221 1,677.82 389.79 -124.99 2,255,441.64 228,910.69 60° 9' 55.527 N 151° 29' 18.251 W 1,900.00 55.000 342.221 1,738.68 465.31 -149.20 2,255,517.69 228,888.19 60° 9' 56.271 N 151° 29' 18.730 W 2,000.00 60.000 342.221 1,792.39 545.60 -174.95 2,255,598.54 228,864.26 60° 9' 57.062 N 151° 29' 19.239 W 2,100.00 65.000 342.221 1,838.55 630.03 -202.02 2,255,683.57 228,839.09 60° 9' 57.893 N 151° 29' 19.774 W 2,140.00 67.000 342.221 1,854.82 664.83 -213.18 2,255,718.60 228,828.72 60° 9' 58.236 N 151° 29' 19.994 W 2,200.00 67.000 342.221 1,878.26 717.42 -230.04 2,255,771.56 228,813.04 60° 9' 58.754 N 151° 29' 20.328 W 2,255.63 67.000 342.221 1,900.00 766.19 -245.68 2,255,820.66 228,798.51 60° 9' 59.234 N 151° 29' 20.637 W 9 5/8" 2,300 .00 67. 000 342. 221 2,400 .00 67. 000 342. 221 2,500 .00 67. 000 342. 221 2,600 .00 67. 000 342. 221 2,700 .00 67. 000 342. 221 2,800 .00 67. 000 342. 221 2,900 .00 67. 000 342. 221 3,000 .00 67. 000 342. 221 3,100 .00 67. 000 342. 221 3,200 .00 67. 000 342. 221 3,300 .00 67. 000 342. 221 3,400 .00 67. 000 342. 221 3,500 .00 67. 000 342. 221 3,600 .00 67. 000 342. 221 3,700 .00 67. 000 342. 221 3,800 .00 67. 000 342. 221 3,900 .00 67. 000 342. 221 4,000 .00 67. 000 342. 221 4,100 .00 67. 000 342. 221 4,200 .00 67. 000 342. 221 4,300 .00 67. 000 342. 221 4,400 .00 67. 000 342. 221 4,439 .99 67. 000 342. 221 4,500 .00 65. 800 342. 221 4,600 .00 63. 800 342. 221 4,700 .00 61. 800 342. 221 4,800 .00 59. 800 342. 221 4,900 _00_ _ 57. 800 342. 221 1,917.34 805.08 -258.15 1,956.41 892.73 -286.26 1,995.48 980.39 -314.36 2,034.55 1,068.04 -342.47 2,073.63 1,155.70 -370.58 2,112.70 1,243.35 -398.68 2,151.77 1,331.00 -426.79 2,190.85 1,418.66 -454.90 2,229.92 1,506.31 -483.00 2,268.99 1,593.97 -511.11 2,308.06 1,681.62 -539.22 2,347.14 1,769.28 -567.32 2,386.21 1,856.93 -595.43 2,425.28 1,944.59 -623.54 2,464.36 2,032.24 -651.64 2,503.43 2,119.90 -679.75 2,542.50 2,207.55 -707.86 2,581.57 2,295.20 -735.97 2,620.65 2,382.86 -764.07 2,659.72 2,470.51 -792.18 2,698.79 2,558.17 -820.29 2,737.87 2,645.82 -848.39 2,753.50 2,680.87 -859.65 2,777.52 2,733.23 -876.44 2,820.10 2,819.39 -904.07 2,865.81 2,904.08 -931.22 2,914.59 2,987.20 -957.87 2,966.39 3,068.64 -983.99 2,255,859.83 228,786.92 2,255,948.09 228,760.79 2,256,036.36 228,734.67 2,256,124.62 228,708.54 2,256,212.89 228,682.42 2,256,301.15 228,656.29 2,256,389.42 228,630.17 2,256,477.69 228,604.04 2,256,565.95 228,577.92 2,256,654.22 228,551.79 2,256,742.48 228,525.67 2,256,830.75 228,499.54 2, 256, 919.01 228, 47 3.42 2,257,007.28 228,447.29 2,257,095.54 228,421.16 2,257,183.81 228, 395.04 2,257,272.07 228,368.91 2,257,360.34 228,342.79 2,257,448.60 228,316.66 2,257,536.87 228,290.54 2,257,625.14 228,264.41 2,257,713.40 228,238.29 2,257,748.69 228,227.82 2,257,801.42 228,212.22 2,257,888.18 228,186.54 2,257,973.46 228,161.30 2,258,057.15 228,136.52 2,258,139.17 228,112.25 60° 9' 59.617 N 60° 10' 0.480 N 60° 10' 1.344 N 60° 10' 2.207 N 60° 10' 3.070 N 60° 10' 3.933 N 60° 10' 4.797 N 60° 10' 5.660 N 60° 10' 6.523 N 60° 10' 7.386 N 60° 10' 8.250 N 60°10'9.113N 60° 10' 9.976 N 60° 10' 10.839 N 60° 10' 11.703 N 60° 10' 12.566 N 60° 10' 13.429 N 60° 10' 14.292 N 60° 10' 15.156 N 60°10'16.019N 60° 10' 16.882 N 60° 10' 17.745 N 60° 10' 18.091 N 60° 10' 18.606 N 60° 10' 19.455 N 60° 10' 20.289 N 60° 10' 21.107 N 60°10'21.910N 151° 29'.20.883 W I 151°29'21.439W 151 ° 29' 21.994 W 151 ° 29' 22.550 W 151 ° 29' 23.105 W 151 ° 29' 23.661 W 151°29'24.217W 151 ° 29' 24.772 W 151 ° 29' 25.328 W I 151 ° 29' 25.883 W 151 ° 29' 26.439 W 151 ° 29' 26.995 W 151 ° 29' 27.550 W 151 ° 29' 28.106 W ~I 151 ° 29' 28.661 W ', 151°29'29.217W 151 ° 29' 29.773 W 151 ° 29' 30.328 W 151 ° 29' 30.884 W 151 ° 29' 31.440 W 151 ° 29' 31.995 W 151 ° 29' 32.551 W 151 ° 29' 32.774 W 151 ° 29' 33.106 W 151 ° 29' 33.652 W 151°29'34.189W 151°29'34.716W 151 ° 29' 35.232 W 12/5/2006 12:05:34PM Page 3 COMPASS 2003.16 Build 42 MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEQ Plan Planned Survey • Marathon Oil Planning Report -Geographic Local Co-ordinate Reference: TVD Reference: MD Reference: North Reference: Survey Calculation Method: Well GO 5 WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature Measured Vertical Map Map Depth Inclination Azimuth Depth +N/-S +E/-W Northing Easting (ft) (°) (°) (ft) (ft) (ft) (ft) (ft) Latitude Longitude 5,000.00 55.800 342.221 3,021.14 3,148.32 -1,009.54 2,258,219.40 228,088.50 60° 10' 22.694 N 151° 29' 35.737 W 5,100.00 53.800 342.221 3,078.78 3,226.13 -1,034.49 2,258,297.75 228,065.31 60° 10' 23.461 N 151° 29' 36.231 W 5,200.00 51.800 342.221 3,139.24 3,301.97 -1,058.81 2,258,374.12 228,042.70 60° 10' 24.207 N 151° 29' 36.712 W 5,300.00 49.800 342.221 3,202.44 3,375.76 -1,082.47 2,258,448.43 228,020.71 60° 10' 24.934 N 151° 29' 37.179 W 5,400.00 47.800 342.221 3,268.31 3,447.41 -1,105.44 2,258,520.57 227,999.36 60° 10' 25.640 N 151° 29' 37.634 W 5,500.00 45.800 342.221 3,336.76 3,516.82 -1,127.70 2,258,590.47 227,978.67 60° 10' 26.323 N 151° 29' 38.074 W 5,600.00 43.800 342.221 3,407.71 3,583.91 -1,149.22 2,258,658.03 227,958.67 60° 10' 26.984 N 151 ° 29' 38.499 W ~ 5,700.00 41.800 342.221 3,481.08 3,648.61 -1,169.96 2,258,723.18 227,939.39 60° 10' 27.621 N 151° 29' 38.909 W 5,800.00 39.800 342.221 3,556.78 3,710.83 -1,189.91 2,258,785.83 227,920.84 60° 10' 28.234 N 151° 29' 39.304 W I 5,900.00 37.800 342.221 3,634.71 3,770.49 -1,209.04 2,258,845.91 227,903.06 60° 10' 28.822 N 151° 29' 39.682 W 6,000.00 35.800 342.221 3,714.77 3,827.53 -1,227.33 2,258,903.35 227,886.06 60° 10' 29.383 N 151° 29' 40.044 W 6,100.00 33.800 342.221 3,796.89 3,881.88 -1,244.76 2,258,958.07 227,869.86 60° 10' 29.918 N 151° 29' 40.389 W 6,190.22 31.995 342.221 3,872.64 3,928.54 -1,259.72 2,259,005.05 227,855.95 60° 10' 30.378 N 151 ° 29' 40.684 W GO #5 -Tyonek Ti 6,200.00 31.800 342,221 3,880.94 3,933.46 -1,261.30 2,259,010.01 227,854.49 60° 10' 30.426 N 151° 29' 40.716 W 6,300.00 29.800 342.221 3,966.83 3,982.21 -1,276.93 2,259,059.10 227,839.96 60° 10' 30.907 N 151 ° 29' 41.025 W 6,400.00 27.800 342.221 4,054.46 4,028.08 -1,291.64 2,259,105.30 227,826.28 60° 10' 31.358 N 151° 29' 41.316 W ', 6,500.00 25.800 342.221 4,143.71 4,071.02 -1,305.41 2,259,148.53 227,813.49 60° 10' 31.781 N 151° 29' 41.588 W ', 6,600.00 23.800 342.221 4,234.48 4,110.96 -1,318.22 2,259,188.74 227,801.58 60° 10' 32.174 N 151° 29' 41.841 W 6,700.00 21.800 342.221 4,326.66 4,147.86 -1,330.05 2,259,225.90 227,790.58 60° 10' 32.538 N 151° 29' 42.075 W 6,718.65 21.427 342.221 4,344.00 4,154.40 -1,332.15 2,259,232.49 227,788.63 60° 10' 32.602 N 151° 29' 42.117 W 7" 6,800.00 19.800 342.221 4,420.14 4,181.67 -1,340.89 2,259,259.95 227,780.51 60° 10' 32.871 N 151 ° 29' 42.290 W 6,825.79 19.284 342.221 4,444.45 4,189.88 -1,343.53 2,259,268.22 227,778.06 60° 10' 32.952 N 151° 29' 42.342 W GO #5 -Tyonek T2 6,900.00 17.800 342.220 4,514.80 4,212.35 -1,350.73 2,259,290.85 227,771.36 60° 10' 33.173 N 151° 29' 42.484 W 7,000.00 15.800 342.220 4,610.53 4,239.87 -1,359.56 2,259,318.56 227,763.16 60° 10' 33.444 N 151° 29' 42.659 W 7,060.13 14.597 342.220 4,668.55 4,254.89 -1,364.37 2,259,333.68 227,758.68 60° 10' 33.592 N 151° 29' 42.754 W GO #5 -Tyonek T10 7,100.00 13.800 342.220 4,707.21 4,264.20 -1,367.36 2,259,343.05 227,755.91 60° 10' 33.684 N 151 ° 29' 42.813 W 7,200.00 11.800 342.220 4,804.72 4,285.29 -1,374.12 2,259,364.30 227,749.62 60° 10' 33.891 N 151 ° 29' 42.947 W ~, 7,300.00 9.800 342.220 4,902.94 4,303.14 -1,379.84 2,259,382.26 227,744.30 60° 10' 34.067 N 151° 29' 43.060 W 7,400.00 7.800 342.219 5,001.76 4,317.70 -1,384.52 2,259,396.93 227,739.96 60° 10' 34.211 N i51° 29' 43.152 W 7,500.00 5.800 342.218 5,101.05 4,328.98 -1,388.13 2,259,408.28 227,736.60 60° 10' 34.322 N 151° 29' 43.224 W 7,600.00 3.800 342.216 5,200.70 4,336.94 -1,390.69 2,259,416.31 227,734.22 60° 10' 34.400 N 151° 29' 43.274 W 7,700.00 1.800 342.211 5,300.57 4,341.59 -1,392.18 2,259,420.99 227,732.84 60° 10' 34.446 N 151° 29' 43.304 W 7,789.99 0.000 243.435 5,390.55 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 7,800.00 0.000 243.435 5,400.56 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W 7,900.00 0.000 243.435 5,500.56 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W' 8,000.00 0.000 243.435 5,600.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W ~ 8,100.00 0.000 243.435 5,700.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,200.00 0.000 243.435 5,800.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,286.44 0.000 243.435 5,887.00 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W GO #5 -Tyonek T3 8,300.00 0.000 243.435 5,900.56 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W 8,400.00 0.000 243.435 6,000.56 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W 8,500.00 0.000 243.435 6,100.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,600.00 0.000 243.435 6,200.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,700.00 0.000 243.435 6,300.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,800.00 0.000 243.435 6,400.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 8,900.00 0.000 243.435 6,500.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 9,000.00 0.000 243.435 6,600.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W 9,100.00 0.000 243.435 6,700.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 12/5/2006 12:05:34PM Page 4 COMPASS 2003.16 Build 42 Marathon Oil nlaeaTeoa Planning Report -Geographic Database: EDM 2003.16 Single User Db Local Co-ordinate Reference: Well GO 5 Company: ALASKA TVD Reference: WELL @ 187.OOft (Original Well Elev) Project: NINILCHIK MD Reference: WELL @ 187.OOft (Original Well Elev) Site: GRASSIM OSKOKOFF PAD North Reference: True Well: GO 5 Survey Calculation Method: Minimum Curvature Wellbore: GO 5 - OH Design: Final INTEO Plan Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth +N!-S +EI-W Northing Easting (ft) (°) (°) (ft) (ft) (ft) (ft) (ft) Latitude Longitude 9,200.00 0.000 243.435 6,800.56 4,342.94 -1,392.61 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.312 W 9,236.44 0.000 243.435 6,837.00 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151 ° 29' 43.312 W GO #5 -Tyonek T90 9,300.00 0.000 243.435 6,900.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.313 W 9,400.00 0.000 243.435 7,000.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151 ° 29' 43.313 W 9,500.00 0.000 243.435 7,100.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151 ° 29' 43.313 W ', 9,600.00 0.000 243.435 7,200.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.313 W 9,700.00 0.000 243.435 7,300.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.313 W 9,800.00 0.000 243.435 7,400.56 4,342.94 -1,392.62 2,259,422.34 227,732.43 60° 10' 34.459 N 151° 29' 43.313 W 9,900.00 0.000 243.435 7,500.56 4,342.94 -1,392.62 2,259,422.34 227,732.42 60° 10' 34.459 N 151° 29' 43.313 W 10,000.00 0.000 243.435 7,600.56 4,342.94 -1,392.62 2,259,422.34 227,732.42 60° 10' 34.459 N 151° 29' 43.313 W 10,100.00 0.000 243.435 7,700.56 4,342.94 -1,392.62 2,259,422.34 227,732.42 60° 10' 34.459 N 151° 29' 43.313 W 10,200.00 0.000. 243.435 7,800.56 4,342.93 -1,392.62 2,259,422.34 227,732.42 60° 10' 34.459 N 151 ° 29' 43.313 W i 10,300.00 0.000 243.435 7,900.56 4,342.93 -1,392.62 2,259,422.34 227,732.42 60° 10' 34.459 N 151 ° 29' 43.313 W i 10,386.44 0.000 243.435 7,987.00 4,342.94 -1,392.61 2,259,422.35 227,732.43 60° 10' 34.459 N 151° 29' 43.31 2 41/2" - GO #5 - TD Targets Target Name - hiUmiss target Dip Angle Dip Dir. TVD +N/-S +E/-W Northing Easting -Shape (°) (°) (ft) (ft) (ft) (ft} (ft) Latitude Longitude ' GO #5 -Tyonek T2 0.00 0.00 4,387.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 178.28ft at 6825.79ft MD (4444.45 TVD, 4189.88 N, -1343.53 E) - Circle (radius 250.00) GO #5 -Tyonek T3 0.00 0.00 5,887.00 4,350.54 -1,395.22 2,259,430,00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 8.03ft at 8286.44ft MD (5887.00 TVD, 4342.94 N, -1392.61 E) - Circle (radius 250.00) GO #5 -Tyonek T90 0.00 0.00 6,837.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 8.03ft at 9236.44ft MD (6837.00 TVD, 4342.94 N, -1392.62 E) -Circle (radius 250.00) GO #5 -Tyonek T10 0.00 0.00 4,642.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 103.95ft at 7060.13ft MD (4668.55 TVD, 4254.89 N, -1364.37 E) - Circle (radius 250.00) GO #5 - TD 0.00 0.00 7,987.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W ', -plan misses by 8.03ft at 10386.44ft MD (7987.00 TVD, 4342.94 N, -1392.61 E) ~ - Circle (radius 250.00) GO #5 -Tyonek T1 0.00 0.00. 3,587.00 4,350.54 -1,395.22 2,259,430.00 227,730.00 60° 10' 34.534 N 151 ° 29' 43.364 W - plan misses by 527.29ft at 6190.22ft MD (3872.64 TVD, 3928,54 N, -1259.72 E) - Circle (radius 250.00) Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (~~) (~7 2,255.63 1,900.00 9 5/8" 9-5/8 12-1/4 6,718.65 4,344.00 7" 7 8-1 /2 10,386.44 7,987.00 41/2" 4-1/2 7 12/5!2006 12:05:34PM Page 5 COMPASS 2003.16 Build 42 M MARATHON Database: EDM 2003.16 Single User Db Company: ALASKA Project: NINILCHIK Site: GRASSIM OSKOKOFF PAD Well: GO 5 Wellbore: GO 5 - OH Design: Final INTEO Plan Marathon Oil Planning Report -Geographic Local Co-ordinate Reference: ND Reference: MD Reference: North Reference: Survey Calculation Method: • Well GO 5 WELL @ 187.OOft (Original. Well Elev) WELL @ 187:OOft (Original Well Elev) True Minimum Curvature 12/5/2006 12:05:34PM Page 6 COMPASS 2003.16 Build 42 • + ^I ~xjI , ~ ~' ~ . ... 3 . . ; 1 i I ~ ~ ~ I ,,, '. ~ ~ f.~ I ~ I - I I , ' ~ ~~~~~ ~ ~'. ~ ~~' ^ ' ~ ~ I ~~ m ~~ ~ ~~~ , ~ ` ' ~ ; , i~ ~ i I ~ I~ I ~ ~ I ' ~ , ~ ~ ~ ~ N ~i N N' V 61' Q1 ~1~ N~. . ~ ~ i i i i i i ~ ~~~. 41 ~ J J] 7 7 J~ I S V V V V V V" C I _' ,~+ ,o ~n ~ .~ ~ •.~ m a~ ~ a 0 G U.G~.O.~~ a ~i :: o o ri o.i!).o~~o ~ ~ O ~ C1 O~.T~.O.O~ E '~-' O~~+ O N~', O O". , C p a ~ j d ~ ~ H ~ r i ~. . ~ , . ~.r ~ I O O 0~-0~~0 O O~ O O.O'O~:O O O '-' O ~~In'.O~~N~O~~O 31 li ~ ~ ~'~. ~': m t_ ~ ~ ; y)' , ~ ~ o~~0 30~o°o'oi OIO N O O O O ~ ~ ~ O~O N O~O O~O I ~ O: O N~ O_~~, O~ O O ~ ~ ~ LL .~.~ . ': l7 ~: O ] _ ~ ~ F I ( L '. ~. . ~~ 4 ~ ~ I O70`O ~i0..~.p., ~ 2 i OaOtO;0i0;0~.0= . ~ , i ~O oio~lfl~o~NjO~oj ~ ~ ~ I ~ ~ . . . . ~.. ' '. i I ~ c, o r.. ~n ~ ~ri ~n .n . ~. O O ~+~.~l~R h~R~ O O C7 N G~.C~ G~ '_ ,~' N'..' ~il ~ ~~.tfl N. . . 61 ~'~ N d' ~~. T T . . ~ ~ I 7 v ~ I N O O F ~ ~ O~',O'0.]~~lj-'~:-~ -~~_ ~ ~ ~~. pi~ 0~..3~D ~D ~D~~D' ' ~ ~ Typ O;O~~ T N N N~ ~ p I O ~S ~ ~ N OND ~ M C~'1 i ~ I ~ ~ W v ~' I ; , ; , ~ T i O~~~. O; f"1 h V 7 7 f V1 ~ O: C~.~, N Q~ U~ T Q~i - O i O'~~0;? O N N Ni 1~0 OD T V3V t ~~. ~ O ' 2'~ :~ N ~ vlvi ~'~ ~ ~ ~ i ~~' L v : i ; ~ ' 8 °~~~~ N~g ° : oo~~o~~ ~i J o~~~,~m ~ ~ ~ ~ m,ro n m~oo m y ~~. .. N NiN,f~: ~ { W ___ ~ ' , .. . . ~ m w:.J Q1 ~ . . . ~ n 3 I C, ~j O O N~:IiY N~~ I I 2 ~ ~~.1 C * O O N N~l`7:O~.C1. ~ ~~ ~ O O N.N~7:7.C'~ ~. i I O O N N!f•i~~.f•i C1~ 3 _ ;~ .,D ~ ~ i1 Q•°_.. l`~j M N~N N_ .. . p C , ~ ~~ , ' . , .. i 3;~ ° ~ ~ ~ N' ~ ~ ~~O O O,O~O~G~ ~ ~ F,~,~~~ 0000;00~ ~ O~~ o O O ~ w I~ C O i ' 3 - N Q I 1 t y~ (-~ ~ d1 ~ ~ i 3 t ~- y a ,~.a otrn o`u~'o! ~ ~. I m ~ ~oamo;co~ {,,, o°, ~ II ~ i.o o m o~m o ! ~ I- - ~ 'Om'~!N'~ a ° ~i v, o ~ V LL- .. ~, ni ~~. !n ~ ~~ j,~ °e°e°a I ~ ' ~~' ~' ~~I I T , ~ Q' ~ ~~ O O O~'T~~.O~~T~T I .......... i ........ Q.O O Q~ P~~T~T } II ~ IL I,,[ p'~i O100J .~-~'~'~~'N.M. ~ , I~ ~' ~.'~_. ~ N O" f~ 00. U { ~ ~ ~~~i I ~ .'.. . . ti ~ . _w1 ~, ~~ j ~ V I ~ ~ '~ • ~ N LL i .-.~ I :_ ..~. _ M1, ,., .. ~., .., ,. ~, a L- . I I~ rG ~. T M AzimuthstoTrueNorth Project: NINILCHIK Magnetic North: 19.14° Site: GRASSIM OSKOKOFF PAD Magnetic Field Well: GO 5 Strength: 55271.SsnT Dip Angle: 73.04° WellbOre: GO 5- OH ModeltelGRF2005~0 Design: Final INTEQ Plan MARATH~N 10.OC 8AC 0 6AC U N LL C O .~ t6 Q N ~ 4.0( 2.0( 0.0( - ' ___ ~ - - __ --- _ _ ! II , ! ~I LEGEND - GO 1, GO 1- OH, Original welibore VO - GO 2, GO 2- OH, Original welibore W - GO 3, GO 3- OH, Original welibore VO - - GO 4, GO 4- OH, OH Original hote VO - Final INTEQ Plan --- _ _ - --- _ _ -- - - - ----- ~ - - - - I - ---- - , -i - ' I ~ , i i ~ ~, _ _ i ~' ~I ~ , . I I . . I I I I . . . _ ' i i i I i ~ I . I I I I , I Monitor Shut-in and ; - - ~ -- monitor - - -- - ,- - , - - - , --- ~ - --- - - -- . _ - Stop Drilling i ) 1500 3000 4500 6000 7500 9000 10500 • ~ Measured Depth ~ MARATHON ALASKA NINILCHIK GRASSIM OSKOKOFF PAD GO 5 G05-OH Final INTEQ Plan Anticollision Report 05 December, 2006 ~ ~ ~ Marathon Oii Anticoilision Report MARATHON NINILCHIK GRASSIMASKOKOFF PAD O.OOft GO 5 G05-OH Final INTEQ Plan I~efsrence , Final INTEQ Plan . ,, „ Filter type: NO GLOBAL FILTER: Using user defined selection & filtering criteria Interpolation Method: Stations Error Model: Systematic Ellipse Depth Range: Uniimited Scan Method: Closest Approach 3D Results Limited by: Maximum center-center distance of 9,999.98ft Error Surface: Elliptical Conic Warning Levels Evaluated at: 2.00 Sigma iv,oov.VY r~nai u~ i ~~t rion ~uv .~ - vi ~~ t.~Ny ~~ mvvuro r rtv '~fl1#It~(~YY . . . , , , . ~ s . ~ ~~ Reference ~set ~f~~ce ~ i ° Nlea~t~cl , Meas~-red. ` ~8#~en 8~tvvesn ~e~a~fa~bn W~ SI~e N~FYtB Fle,pikh, OB~ffh ~ ~"iRr3A~~ €III(JSes ~d~##f ~ a j , ;~etWe1!-IN~ItborB'-D~sign ~ - t~) ~) ~ ~~Y'~ (ft? ~ ';<r~'' • ~,> ~„ ~ '~' GRASSIM OSKOKOFF PAD GO 1- GO 1- OH - Original wellbore 2,084.25 1,861.86 214.51 180.91 6.385 CC GO 1- GO 1- OH - Original wellbore 2,140.00 1,904.28 216.14 180.41 6.050 ES GO 1- GO 1- OH - Original wellbore 2,300.00 2,024.35 245.67 203.48 5.822 SF GO 2- GO 2- OH - Original wellbore 1,465.54 1,451.60 U 0.24 89.20 5.240 CC, ES GO 2- GO 2- OH - Original wellbore 1,500.00 1,475.88 112.28 90.50 5.155 SF GO 3- GO 3- OH - Original wellbore 760.67 774.62 119.81 110.37 12.702 CC, ES GO 3- GO 3- OH - Original wellbore 900.00 897.00 130.76 119.20 11.320 SF GO 4- GO 4- OH - OH Original hole 0.00 0.00 135.82 GO 4- GO 4- OH - OH Original hole 100.00 97.59 136.70 135.73 140.319 ES GO 4- GO 4- OH - OH Original hole 6,000.00 5,754.66 2,783.96 2,546.16 11.707 SF CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min eilipse separation 12/5/2006 12:06:02PM Page 2 of 15 COMPASS 2003.16 Build 42 ~ ~ Marathon Oil M MARATHON Anticoilision Report Coin~tanY: ., . ALASKA t,qcs~l ~o-tri~l~rtate ~sF~r~ " Wetl GO 5 Ri~'jech ~ ~i NINlLCHIK ~ 7'~-~~(e~~tc~a ; ~ ~~~ WELL @ 187.OOft (Original Well Elev) ~ ~ 1~~}'#~Sft~:' '-GRASSIM OSKOKOFF PAD ~IIp ~~~W~a~YC$ ; ;~; ~~ ! WELL @ 187.OOft (Original Well Elev) , $it~~lr#a~r, 70.OOft ~ ~ NaE#hR~fereiic~~' '., , ~,,: True ~ ~ ~t~etl~e YiCell: ~ ~ GO 5 Sur~ey C~tc~l~ion Met(ttk3~R, ,- ~ Minimum Curvature ~ ~ ~ 4iCe`f~~~trarr: i 0.00ft ~ ~ ~ ~titpuE ~rtoF~,~r~~~ " ~ ~ ~~ 2.00 sigma I~efer~et~ YITi~llptir~';: -' GO 5- OH ~ Da~taba~ec ~ EDM 2003:16 Single User Db ~ ~ ~ ~$+~f~renc~ pssi~n; , Final INTEQ Plan ~'lffset'Y~fL~ i~ef~e~nae, Offset Datum ~t~fiF~~fgn , GRASSIM OSKOKOFF PAD - GO 1- GO 1- OH - Original wellbore ~~~~`~r*' ~~~ - . sw"vey arog~am:'. ;ts5-KAN±C,trCaYtz~ ' ~ r ' otts~we~~ Sto~; Y4 ~~R` : "~ RePoranes ; „- Urtf;B[ ~. ~ ~. $entt Ma1nrAXfs , , ~ '. ; ' , ' ~. ' , Cisqn+ce , ; „ ~ . r Meesurad VerpctlF ~ i~silk4d ~ ~`alN~~I Ret"arent» G~Ai~ ~ MIgM1de ~, Efi(~at+NY§NbonCieMrB ~9lW,~a~. BeLVld~eri:~ ~nIYnNM S~p~[si~IsNh .,, , q~~xi ' , aspth. ' tA~pH1} :~ ` `68p~Y ' ~DeAth~ . i6a4facs ';,~}~„g' , +ENW tf~tie~' ~ EIN{1~6b ffi9¢~~8quh ~s2ha1 ' ` ~~ (t~}: ~:. {RY (~ ' fRl -G'# , <" (nl t!~Y t'nt`' : {tci (#~-,y. ~ ' . . „ ~.~, „ ~ , ~ ~. , ~ ~,, , < 0.00 0.00 0.00 0.00 0.00 0.00 32.125 261.63 164.28 308.93 ~ 0.00 0.00 0.00 0.00 0.00 0.00 32.125 261.63 16428 308.93 100.00 100.00 98.75 98.75 0.40 0.69 32.113 261.83 164.33 309.13 308.04 1.09 264.550 200.00 200.00 197.53 197.53 0.90 1.38 32.077 262.44 164.48 309.73 307.46 228 135.983 300.00 300.00 297.43 297.36 1.40 2.08 31.521 264.72 162.35 310.55 307.07 3.48 89.316 400.00 400.00 396.68 396.17 7.90 278 29.829 270.22 154.93 311.51 306.83 4.67 ~ 66.678 500.00 500.00 493.80 492.32 2.40 3.47 27.347 27821 143.89 313.31 307.45 5.87 53.416 . 600.00 600.00 589.44 586.54 2.90 4.19 24.414 288.00 130.73 316.57 309.49 7.08 44.696 700.00 700.00 684.65 679.90 3.40 4.91 21.174 299.55 116.03 321.86 313.56 8.30 38.793 800.00 800.00 776.45 769.37 3.90 5.60 77749 ~ 312.32 99.97 329.35 319.87 9.49 34722 900.00 899.87 866.82 856.33 4.60 628 31.802 327.92 81.01 336.90 326.04 ~ 10.86 31.020 1,000.00 998.99 957.01 941.67 5.30 7.05 28.256 346.13 5827 340.49 328.17 12.31 27.651 1,100.00 1,096.58 1,047.67 1,025.70 6.05 7.96 24.662 366.83 3128 339.94 325.98 13.96 24.357 1,200.00 1,191.93 1,139.04 1,109.11 6.81 8.88 21.137 389.32 1.56 334.71 319.11 15.60 21.454 1,300.00 1,284.28 1,225.34 1,186.08 7.82 9.87 17.539 412.42 -29.88 325.37 307.87 17.55 18.538 1,400.00 1,372.96 1,308.63 1,257.71 7.82 10.92 13.397 436.95 -64.55 31327 29470 18.56 16.878 1,500.00 1,45727 1,393.15 1,328.16 9.08 11.99 8.567 463.98 -102.60 298.85 278.02 20.83 14.349 1,600.00 1,536.58 1,47722 1,396.45 9.08 13.05 3.044 492.55 -142.45 282.13 26029 21.85 12.915 1,700.00 1,610.28 1,559.48 1,461.37 10.76 14.12 -3.391 521.98 -183.49 264.00 239.49 24.51 10.770 ~ 1,800.00 1,677.82 1,640.98 1,52374 7076 15.48 -11.133 . 552.43 -22621 245.85 220.02 25.83 9.517 ~ 1,900.00 1,738.68 1,720.71 1,583.01 12.80 16.80 -20.129 583.84 -269.31 229.58 200.45 29.13 7.682 2,000.00 1,792.39 1,798.04 1,638.55 ' 12.80. 18.09 30247 615.95 -312.47 216.01 187.60 30.41 7.168 ~ 2,08425 1,831.80 1,661.66 1,682.64 14.95 19.16 -39.445 643.51 -349.46 214.51 180.91 33.60 6.385 CC ~ 2,100.00 1,838.55 1,873.81 1,690.72 15.35 19.36 -41.198 648.83 -356.49 214.64 180.44 34.20 6.277 2,140.00 1,854.82 1,90428 1,711.00 16.37 19.87 -45.642 662.71 374.51 216.14 180.41 35.73 6.050 ES 2,200.00 7,87826 1,949.16 1,740.05 17.88 2070 -52.052 683.90 -001.35 222.64 184.53 38.11 5.842 2,300.00 1,917.34 2,024.35 1,786.10 20.40 2223 -61.508 720.77 -447.95 245.67 203.48 42.19 5.822 SF 2,400.00 1,956.41 2,105.08 1,832.41 22.91 23.86 -69.4~9 762.07 -499.60 27922 232.85 46.37 6.022 2,500.00 1,995.48 2,182.69 1,874.67 25.43 25.42 -75281 80279 -550.37 319.12 268.66 50.45 6.325 2,600.00 2,034.55 2,26328 1,915.44 27.94 27.31 -79.603 845.89 -604.90 363.86 309.03 54.85 6.634 2,700.00 2,073.63 2,347.65 1,955.17 30.44 29.44 -82.687 892.63 -662.62 410.66~ 351.19 59.47 6.906 2,800.00 2,112.70 2,430.24 1,992.68 32.95 31.52 -84.912 938.85 -720.07 458.70 394.66 64.04 7.163 2,900.00 2,151.77 2,520.48 2,033.38 35.46 33.78 -86.860 989.31 -782.83 507.48 438.68 68.80 7.376 3,000.00 2,190.65 2,611.91 2,074.53 37.96 36.07 -88.434 1,041.39 -845.~2 555.52 ~ 481.94 73.58 7.550 3,100.00 2,229.92 2,699.41 2,114.15 40.47 3827 -89720 1,091.33 -905.66 603.53 525.26 7827 7.711 ~ 3,200.00 2,268.99 2,787.04 2,154.19 42.97 40.46 -90.858 1,14123 -965.55 651.66 568.71 82.96 7.855 3,300.00 2,308.06 2,871.89 2,193.34 45.47 42.58 -91.853 1,189.34 -1,023.44 699.98 612.40 87.58 7.993 3,400.00 2,347.14 2,954.35 2,231.77 47.98 44.65 -92.746 1,235.56 -1,079.90 748.93 656.78 92.14 8.128 3,500.00 2,38621 3,041.98 . 2,272.91 50.48 46.84 ~-93.612 1,284.40 -1,139.91 798~.18 701.35 96.83 8243 3,600.00 2,42528 3,128.44 2,313.68 52.98 49.00 -94.383 1,332.56 -1,199.00 847.46 745.97 101.49 8.350 3,700.00 2,464.36 3,217.19 2,355.61 55.49 51.23 -95.094 1,381.95 -1,259.67 896.89 790.68 10621 8.445 3,800.00 2,503.43 3,321.96 2,40525 57.99 53.85 -95.637 1,441.18 -1,330.41 945.33 834.02 111.32 8.492 3,900.00 2,542.50 3,40124 2,442.85 60.49 55.83 -96.341 1,486.34 -1,383.62 993.34 877.54 115.80 8.578 4,000.00 2,581.57 3,477.45 2,478.95 62.99 5774 -96788 1,52922 -1,435.24 1,04223 922.02 12021 8.670 4,100.00 2,620.65 3,549.99 2,513.31 65.49 59.55 -97.186 1,569.37 -1,484.95 1,09223 967.69 124.53 8.771 4,200.00 2,659.72 3,620.87 2,546.98 67.99 61.32 -97.559 1,607.82 -1,534.05 1,143.38 1,014.57 128.81 8.876 4,300.00 2,69879 3,690.19 2,580.36 70.50 63.06 -97.932 1,644.50 -1,582.48 1,195.73 1,062.68 133.05 8.987 4,400.00 2,737.87 3,782.49 2,625.57 73.00 64.96 ~ -98.439 1,692.63 -1,646.98 1,248.57 1,111.12 137.46 9.083 4,439.99 2,753.50 3,821.86 2,645.15 74.00 65J5 -98.658 1,71325 -1,674.21 1,269.47 1,13022 13924 9.117 . 4,500.00 2,777.52 3,872.58 2,670.54 75.49 6676 -99.627 1,739.83 -1,709.15 1,300.65 1,158.90 14175 9.175 4,600.00 2,820.10 3,954.00 2,711.46 77.98 68.39 -101.071 1,782.35 -1,76524 1,352.36 1,206.48 145.88 9270 4,700.00 2,865.81 4,033.94 2,751.46 80.46 70.39 -102.318 1,823.95 -1,820.56 1,403.81 1,253.43 150.38 9.335 CC - Min cen2re To center distance or covergent point, SF - min separation factor, ES - min eliipse separation 12/5/2006 12:06:02PM Page 3 of 15 COMPASS 2003.16 Build 42 Marathon Oil ~ MARATHON Anticollision Report ComP~+~Y: . ALASKA ~. ~. Gvcal Co-or~#inate l~'~reei+~~. ~ ~ . . - WeII GO 5 RI~Je~': ~NINILCHIK ~ ~ 'C1lp;;~+~~erence, >; ~ ~ WELL @ 187.OOft (Original Well Elev) f~ef$r~i!t~~Sif~: ~- '~ GRASSIM~OSKOKOFF PAD ~ N~~~~r~lkt~^ ~~~ WELL @ 187.OOft (Original Well Elev) ~~ S7f~Lrrdr.~ ` 'O.OOft ~ ~-l~iOrt#-T~i~t'~~nce: ~ True !~#~ce7~~~kY~f1: ~ "~ " ~' GO S ~it~~l~cll~y~pi~ NC~tho~1: ,. ~ Minimum Curvature ~ ~ ~1t~11 ~rror: ' ' O.OOft Out~ut'srrisT~ ~r~ aY " 2.00 sigma Refer~}~tce W~~tbore , t GO 5- OH ~1~aq~~; `: ~~ EDM 2003.16 Single User Db ~~$k~ p~sigh; " ; ~ ' Final INTEQ Plan ~ ~~tT1fb }~elferen~: ~ Offset Datum ~Tfl'set;CYesigtt ' GRASSIM OSKOKOFF PAD - GO 1- G0 1- OH - Original wellbore `` ~~g~~~`a~, ~~~~ 5urv~YPrs~gram ?95-Rrt4Vr0`t~VRO.' ~ „ ;'. , . ~~~ ,, ~ L%~sa~Yftei~~mrr:, ~ptid~i~~~ l~aPar' ery`ce ,'. ; . , . {SFft+ f! ; ~etni MejorY4~ck ~. . {3lftanae : ` , bMaa~dY~q ~+et~fa$1 " , tipeasarsd '~ veetM,st~ '- FSeisrveKCe iiEtsat „-M18~~fi~ ;f`r~~~ WW~'+ Get~tra" `; 6aMresn 6etwoerr.: NNlhhti~n 9s~~1cn x;; ~y9 ~ep}~ti f3s~,,., ~Claptfi' DeP~t ` : :' 7~oWfac¢i ~~.:g ~. , 4~{~ C~ntiss~ EIRpa6ni:; ~i~qrdtlan fa~ t~ t t : t~;',:. , (~t1 '~ !ftl ; Ifft' ., r ., t~1 - . . {n! .,. ("t , ~~ q~y " ' ~ ~ ~y fPtf ~; t~l. :' .:.. ,.(iU . . „ , . 4,800.00 2,914.59 4,114.99 2,791.54 82.45 7225 -103.375 1,866.00 -1,877.08 1,455.05 1,300.82 154.23 9.434 4,900.00 2,966.39 4,200.52 2,834.14 84.43 73.96 -104.260 1,910.16 -1,936.67 1,505.72 1,347.78 157.94 9.534 5,000.00 3,021.14 4,26924 2,868.17 86.42 75.64 -105.110 1,945.45 -1,984.83 1,556.12 1,394.51 161.61 9.629 5,100.00 3,07876 4,335.00 2,699.66 88.40 77.30 -105.820 1,979.00 -2,031.80 1,606.88 7,441.62 16526 9723 5,200.00 3,13924 4,412.48 2,936.07 90.38 79.24 -106.332 2,018.30~ -2,087.77 1,657.67 1,488.47 169.19 9797 5,300.00 3,202.44 4,503.09 2,978.52 92.02 81.51 -106.625 2,064.15 -2,153.40 1,708.03 1,534.92 173.11 9.867 5,400.00 3,268.31 4,607.35 3,024.37 93.65 83.96 -106722 . 2,114.82 -2,224.01 1,756.84 1,579.64 17721 9.914 ~ 5,500.00 3,336.76 4,664.07 3,053.56 9529 85.53 -107.109 2,146.97 -2,269.26 1,805.50 1,625.07 160.43 10.007 5,600.00 3,407.71 4,730.40 3,084.38 96.92 87.19 -107.414 2,180.38 -2,317.57 1,854.59 1,670.86 183.74 10.094 5,700.00 3,481.08 4,606.59 3,119.53 98.55 89.10 -107.542 ~ 2,218.56 -2,373.34 1,903.65 1,716.36 18729 10.164 5,600.00 3,556.78 4,892.43 3,158.95 99.79 91.25 -107.482 2,261.63 -2,43628 1,952.41 1,761.72 190.68 10.239 5,900.00 3,634.71 4,982.78 3,200.67 101.02 93.50 -107.309 2,307.19 -2,502.21 2,000.48 1,806.29 194.19 10.302 6,000.00 3,714.77 5,05724 3,23522 10226 95.37 -107.309 2,344.83 -2,556.37 2,048.10 1,850.80 197.30 10.381 6,100.00 3,796.89 5,121.89 3,265.18 103.49 96.98 -107.417 2,37721 -2,603.63 ~ 2,096.01 1,895.84 200.17 10.471 6,200.00 3,880.94 5,183.46 3,29370 104.73 98.52 -107.551 2,4077~ -2,648.88 2,144.33 1,941.37 202.96 10.565 ~ 6,300.00 3,966.83 5,243.13 3,321.41 10572 100A2 -107703 2,436.83 -2,692.97 2,193.15 1,98770 205.45 10.675 6,400.00 4,054.46 5,312.61 3,353.75 106.70 101.75 -107.688 2,470.37 -2,744.52 2,242.39 2,034.20 208.19 10.771 6,500.00 4,14371 5,387.35 3,388.56 107J0 103.62 -107.567 2,506.45 -2,799.94 2,291.67 2,080.61 211.06 10.858 6,600.00 4,234.48 5,455.38 3,420.43 108.70 105.32 -107.541 2,539.16 -2,850.36 2,341.09 2,127.33 213.76 10.952 6,700.00 4,326.66 5,528.16 3,454.94 10970 107.14 -107.433 2,57379 -2,90428 2,390.77 2,174.19 216.58 11.039 ~ 6,800.00 4,420.14 5,670.04 3,523.86 110.45 110.53 -106.178 2,642.09 -3,007.79 2,439.71 2,218.98 220.72 11.053 Q900.00 4,514.80 5,79229 3,585.03 111.20 112.97 -105.224 2,703.03 3,094.33 2,486.49 2,262.58 223.91 11.105 7,000.00 4,610.53 5,867.13 3,62323 111.95 114.46 -105.034 2,74027 -3,146.81 2,533.35 2,307.19 226.16 11202 7,100.00 4,707.21 5,946.29 3,663.80 172.70 176.04 -104.760 2,779.79 -3,202.12 2,580.41 2,351.92 228.49 11293 7,200.00 4,804J2 6,023.31 3,703.08 113.45 11).59 -104.503 2,818.73. -3,25572 2,62770 2,396.92 23078 11.386 7,300.00 4,902.94 6,103.50 3,744.18 114.15 119.30 -104.183 2,859.54 3,31L18 2,67521 2,442.02 233.19 11.472 7,400.00 5,00176 6,170.14 3,778.17 114.85 120.97 -104.086 2,893.83 -3,357.10 2,723.17 2,487.62 235.55 11.561 . 7,500.00 5,101.05 6,233.40 3,610.09 115.55 122.56 -104.043 2,926.81 -3,400.63 2,771.78 2,533.96 237.83 11.655 7,600.00 5,20070 6,290.10 3,838.43 716.25 123.90 -104.117 2,95671 -3,439.59 2,821.14 2,58L28 239.86 11761 7,700.00 5,300.57 6,337.92 3,862.30 116.95 124.85 -104.363 2,981.90 -3,472.50 2,871.43 2,629.91 241.52 11.889 7,789.99 5,390.55 6,37921 3,882.94 117.39 125.68 -122.427 . 3,003.55 3,500.97 2,917.53 2,674.53 243.00 12.006 7,800.00 5,400.56 6,383.71 3,885.19 117.45 125.77 -122.343 3,005.90 3,504.07 2,922.71 2,679.57 243.14 12.021 7,900.00 5,500.56 6,427.47 3,907.11 117.95 126.64 -121.535 3,02872 -3,534.30 2,975.42 2,730.90 244.52 12.169 8,000.00 5,600.56 ~ 6,470.98 3,928.96 118.45 127.57 -120.742 3,05123 3,564.45 3,029.79 2,783.91 245.88 12.322 6,100.00 5,700.56 6,521.00 3,954.15 118.95. 128.51 -119.845 3,076.91 -3,59920 3,08574 2,838.36 24738 12.474 8,200.00 5,800.56 6,60722 3,997.81 119.45 13024 -118.325 3,121.52 3,658.69 3J42.75 2,893.15 249.60 12.591 8,286.44 5,887.00 8,189.14 5,202.09 119.88 151J2 -102202 3,684.92 -4,435.54 3,187.71 2,91626 271.45 11743 8,300.00 5,900.56 8204.52 5,21674 119.95 151.83 -102.139 3,687.57 -0,439.40 3,190.62 ~2,918.98 271.64 11746 8,400.00 6,000.56~ 8,318.15 5,325.07 120.45 152.68 -101.682 3,707.15 -0,467.59 3,211.65 2,938.87 272.98 11766 8,500.00 6,100.56 8,432.11 5,433.86 120.95 153.53 -101232 3,726.83 -4,49521 3,232.68 2,958.34 274.34 11784 8,600.00 6,200.56 8,545.89 5,542.73 121.45 154.39 -100.794 3,746.35 -4,521.87 3,252.83 2,977.14 275.69 11.799 8,700.00 6,300.56 8,618.91 5,612.48 121.95 154.93 -100.509 3,75924 -4,53925 3,273.45 2,996.70 27675 11.828 8,800.00 6,400.56 8,691.44 5,681.52 122.45 155.48 -100218 3,772.52 -4,557.07 3294.87 3,017.07 277.80 11.861 8,900.00 6,500.56 8,759.00 5,745.61 122.95 155.99 -99.941 3,785.33 -4,574.17 3,317.10 3,03829 D8.81 11.897 9,000.00 6,600.56 8,827.89 5,810.75 123.45 156.69 -99.654 3,798.68 -0,592.17 3,34024 3,06023 280.01 11.929 9,100.00 6,700.56 8,892.32 5,871.48 123.95 157.34 -99.384 3,811.30 -0,609.61 3,364.38 3,06323 ~ 281.15 11.966 ~ 9,200.00 6,800.56 8,956.35 5,931.64 124.45 157.99 -99.114 3,823.95 -4,627.50 3,389.52 3,107.22 262.30 12.007 9,300.00 6,900.56 9,019.96 5,99121 124.95 158.64 -98.846 3,836.65 -4,645.83 3,415.65 3,13220 283.45 12.050 . 9,400.00 7,000.56 9,104.53 6,070.16 125.45 159.40 ~-98.489 3,853.66 -4,670.91 3,442.71 3,157.99 284.72 12.092 9,500.00 7,100.56 9,277.65 6,232.73 125.95 160.69 -97796 3,887.38 -4,719.96 3,46870 3,18220 286.50 12.107 9,600.00 7,200.56 9,415.16 6,362.78 126.45 161.72 -97.280 3,913.22 -4,756.37 3,493.05 3,205.02 288.03 12.127 9,700.00 7,300.56 9,757.00 6,692.41 126.95 16426 -96.279 3,964]9 -4,629.38 3,510.5~ 3,219.51 291.07 12.061 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 4 of 15 COMPASS 2003.16 Build 42 ~ ~ MARATHON ~p~~-Y~ . ~ , ~~ , ALASKA Pi~3jact: . iNINILCHIK ~F~'F~tl'~rtC~ aik~' '~ ~ ~ ' GRASSIM OSKOKOFF PAD 5-fe ~rrpr:' O.OOft Refet~hce Wett;; ~GO 5 GY~II ~~r > ; ^A.OOft ~ I~"e~~~'eiice Wailbore ', GO 5- OH Refere]~fc~a~Des~gn,~, ~ "-~:Final INTEQ Plan CY#t~~iSes3i~t1 :„~;r~s GRASSIM OSKOKOFF PAD - GO 1- GO 1 Marathon Oil Anticoilision Report welibore ~ Well GO b ~ ~ WELL @ 187.OOft (Original Well Elev) WELL @ 187.OOft (Original Well Elev) True Minimum Curvature 2.00 sigma EDM 2003.16 Single User Db Offset Datum 9,800.00 7,400.56 9,787.58 6,722.09 127.45 164.49 -96.201 3,968.87 -4,835.51 3,528.99 3,237.19 291.80 12.094 9,900.00 7,500.56 9,844.00 6,776.51 127.95 164.92 -96.039 3,977.42 -0,847.69 3,548.99 3,25626 292J3 12.124 10,000.00 7,600.56 10,196.42 7,119.95 128.45 167.55 -95.142 4,026.49 -4,908.94 3,563.10 3,267.24 295.85 12.043 10,100.00 7,700.56 10,326.39 7,247.64 128.95 168.51 -94.861 4,042.32 -4,927.19 3,576.13 3,278.81 297.31 12A28 10,200.00 7,800.56 10,436.17 7,355.70 129.45 169.28 -94.639 4,054.91 -4,941.93 3,588.66 3,290.08 298.58 12.019 10,300.00 7,900.56 10,546.53 7,464.45 129.95 170.05 -94.429 4,066.91 -4,956.36 3,600.92 3,301.07 299.85 12.009 10,386.44 7,987.00 10,642.45 7,559.08 130.38 17073 -94256 . 4,076.80 -0,968.56 3,61128 3,310.33 300.95 72.000 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 5 of 15 COMPASS 2003.16 Build 42 Marathon Oil ~ MARATHON Anticollision Report CamP~Y~ " > ' ALASKA Cooal Co-arditv,~ta R~ePeti~e,. ~Well GO 5 ~ . p~'dj~c~: • NINILCHIK ~ '('yp R~}e~n~; ~, . ~ '~ WELL~@ 187.OOft (Original Well Elev) ~ ~~iF~FI~~ $3kL `, ~_ ~ ~ +GRASSIM OSKOKOFF PAD ~ ~ #fAl~ Re~'eqcs; ~i ~ '~ WELL @ 187.OOft (Original Well Elev) 53t~'+~r~ar ~ Q.OOft t~lart~ 12bf~renCSv" ' ~~ True ~ Refel'eitc~s 1t~ttell:~ ~~~~ ~ '~ GO 5 9~trveg ~aEcui,~fian NtgtFio!t~ ~ ~ ~ ` , ~'~ Minimum Curvature ~ ~}IFgi4 ~~Nbr~ '' O.OOft t7Gt~5ufi srtt~rs ~r~ ~# ~' 2.00 sigma ~te#t{r9-xGe 1N8111iot~ ,? GO 5- OH ~}~g~~z ~ ~~ EDM 2003.16 Single User Db E~f~renes Desigi~:~ ,~ '~~ Final INTEQ Plan ~ (?ffset'T`~T~~R~f9re[(Ce: •; ~, ~~ Offset Datum ~eYD~slgt~ . " GRASSIM OSKOKOFF PAD - GO 2- GO 2- OH - Original wellbore ~*sr~~ '~~~ `' ' `$~w9yPfa9r~arer; 7~DQ,MN~fV4~1'7Z~,2524-M?NG?f6YR0 ~~.. ` ;': , ¢ffost'#dfa~il~trtrh: ~k~tQfl~ r i~efersn5s ; CHset ' . ~ Skmt A1~1or Ax~'~ ~ " ~ 0lgt~neu ~ ~ AlkResUlY~t1 y~tl4a1 N~tlA~4d ~4~~ 5~ti}9Cet1cM `. '+E NEaiet , t~6sNfs , ' 4~Yiet~fV51ib4J~C4~tr4 ~ , 8atw~en 88riv9@~i" r 1~7,i4nyYn ~~~ataNuw 1~~If~ 4a~m; f~aeh; Il~ep~n ~[sepen ~ ~~row~aea ~ +~u•s +~w " : c~re. Idepsea" Sap~~~+~n" ~~ac~ „ 3 (s~" f ~~1 ; tttl : , tr4 ~ tftl ~ ~ ' (~1 t°3 .: C~ ~ ~ , ~ , ~~! 1~1 ~ft~ ` ` , _. ~ ~ . t. . 0.00 0.00 0.00 0.00 0.00 0.00 45.072 239.08 . 239.68 _ 338.53 0.00 0.00 0.00 0.00 0.00 0.00 45.072 239.08 239.68 338.53 100.00 100.00 98.25 9825 0.40 0.69 45.037 239.40 239.71 338.79 337.71 1.08 312.905 200.00 200.00 197.69 197.69 0.90 1.38 44.934 24026 239.71 339.40 337.12 2.28 148.933 ~ 300.00 300.00 309.88 309.79 1.40 2.17 44.302 242.03 236.21 338.33 334.77 3.56 94.922 400.00 400.00 423.94 423.34 1.90 2.97 42.760 24426 225.87 333.50 328.64 4.86 68.570 500.00 500.00 53928 537.42 2.40 3.80 40.490 244.76 208.97 324.01 317.81 6.19 52.324 . 600.00 600.00 ~ 647.55 643.56 2.90 4.61 37.538 244.21 187.64 311.04 303.53 7.51 41.437 700.00 700.00 749.86 742.90 3.40 5.38 33792 243.89 16322 296.58 . 287.81 877 33799 500.00 800.00 849.47 838.87 3.90 6.13 29.235 244.01 136.57 282.31 27229 10.02 28.168 900.00 899.87 953.15 ~937.52 4.60 6.92 42.189 244.35 104.71 26525 253.74 11.51 23.054 1,000.00 998.99 1,053.92 1,031.42 5.30 7.94 36.916 244.04 68.16 241.23 228.02 1321 18260 1,100.00 1,096.58 1,147.94 1,116.82 6.05 8.88 30.532 243.92 28.87 211.69 196.80 14.89 14.215 1,200.00 1,191.93 1,238.89 1,197.03 &.81 9.90 21.468 243.72 -13.97 178.13 161.50 16.63 10.712 1,300.00 1,284.28 1,323.98 1,269.85 7.82 Y0.97 8.043 243.09 -57.97 143.82 125.16 18.66 7.708 1,400.00 1,372.96 1,403.16 1,335.74 7.82 11.96 -11.583 24223 -101.85 116.75 97.14 19.62 5.952 1,465.54 1,428.75 1,451.60 1,374.92 8.65 12.57 -27.172 241.61 .-130.34 11024 8920 21.04 5.240 CC, ES 1,500.00 1,45727 1,475.88 1,394.19 9.08 12.88 35.339 241.31 -145.09 112.28 90.50 21.78 5.155 SF 1,600.00 7,536.58 1,543.41 1,446.54 9.08 13.91 -55.662 240.62 -18775 139.77 116.92 22.85 6.117 ~ 1,700.00 1,61028 1,609.70 1,49670 10.76 15.01 -69.595 240.14 -231.08 189.09 163~.45 25.64 7.375 , 1,800.00 1,677.82 1,669.51 1,541.09 10.76 16.00 -77.302 239.88 -271.16 250.07 223.41 26.66 9.381 1,900.00 1,738.68 1,724.34 1,580.66 12.80 16.91 -81.199 239.74 309.11 318.47 288.89 29.58 10.767 2,000.00 1,792.39 1,775.48 1,616.62 12.80 1776 -82725 23978 -345.47 39179 361.36 30.43 12.875 2,100.00 1,838.55 1,822.41 1,648.74 15.35 18.54 -82.490 240.03 379.68 468.72 435.01 33.71 13.906 2,140.00 1,854.82 1,839.96 1,660.53 16.37 18.83 -81.999 240.16 -392.66 500.31 465.31 35.00 14296 2,200.00 1,87826 1,86626 1,678.00 17.88 1927 -84.880 240.40 -012.34 548.53 511.59 36.94 14.848 2,300.00 1,917.34 1,910.19 1,706.69 20.40 20.04 -88.962 240.91 -445.60 630.71 590.49 40.22 15.682 2,400.00 1,956.41 1,950.00 1,732.04 22.91 20.84 -91.978 241.46 -476.29 714.57 671.04 43.53 16.417 2,500.00 1,995.48 1,994.40 1,759.60 25.43 21.73 -94721 242.12 -511.09 799.62 . 752.69 46.92 17.041 2,600.00 2,034.55 2,041.97 1,788.40 27.94 22.69 -97.08~ 242.97 -548.94 885.42 835.04 50.38 17.575 2,700.00 2,073.63 2,087.45 1,81525 30.44 23.61 -98.903 244.09 -585.63 971.61 917.82 5379 18.062 2,800.00 2,112.70 2,133.51 1,841.71 32.95 24.53 -100.385 245.42 -623.32 1,058.19 1,000.97 57.22 18.494 2,900.00 2,151.77 2,179.19 1,866.98 35.46 25.46 ,-101.538 247.07 -661.33 1,145.01 1,084.37 60.63 18.884 3,000.00 2,190.85 2,223.67 1,890.48 37.96 2635 -102.394 248.99 -699.05 1,232.06 -1J68.03 64.03 19243 3,100.00 2,229.92 2,267.93 1,912.84 40.47 27.33 -103.040 251.12 -737.18 1,319.34 1,251.83 67.50 19.545 3,200.00 2,268.99 2,310.96 1,933.6J 42.97 28.42 -103.509 253.41 -77476 1,40679 1,335.71 71.08 19.791 3,300.00 2,308.06 2,357.95 1,955.63 45.47 29.60 -103.898 255.93 -81623 1,494.50 1,41975 7476 19.992 3,400.00 2,347.14 2,44374 1,994.35 47.98 31.76 -104.366 26225 -892.52 1,581.56 1,502.17 79.39 19.922 3,500.00 2,366.21 2,523.60 2,026.65 50.48 33.79 -104.581 270.54 -964.05 1,667.40 1,583.53 83.87 19.882 3,600.00 2,42528 2,564.03 2,045.94 52.98 34.80 -104.646 275.10 -1,000.41 1,753.03 1,665.65 87.38 20.062 3,700.00 2,464.36 2,598.89 2,060.67 55.49 35.67 -104.704 278.67 -1,031.80 1,839.15 1,748.40 90.76 20265 3,800.00 2,503.43 2,633.92 2,075.48 57.99 36.55 -104762 281.96 -1,063.38 1,92570 1,831.56 94.13 20.457 ~ 3,900.00 2,542.50 2,668.03 2,089.89 60.49 37.40 -104.819 284.89 -1,094.16 2,012.63 1,915.15 97.49 20.645 4,000.00 2,581.57 2,707.30 2,106.49 62.99 38.39 -704.886 287.93 -1,129.62 2,099.96 1,998.99 100.97 20.797 4,100.00 2,620.65 2,73329 2,117.47 65.49 39.04 -104.930 289.73 -1,153.10 2,187.63 2,083.50 104.13 21.010 4,200.00 2,65972 2,772.50 2,134.04 67.99 40.02 -104.998 292.15 -iJ88.55 2,275.68 2J68.07 107.61 21.148 4,300.00 2,698.79 2,795.30 2,143.69 70.50 40.59 -105.038 293.39 -1,209.18 2,364.03 2,253.35 110.68 21.359 4,400.00 2,737.87 2,833.60 2,159.92 73.00 41.55 -105.107 295.19 -1,243.82 2,45272 2,338.58 114.14 21.489 4,439.99 2,753.50 2,833.60 2,159.92 74.00 41.55 -105.107 295.19 -1,243.82 2,488.25 2,373.11 115.14 21.611 4,500.00 2,777.52 2,852.50 2,167.92 75.49 42.02 -107.366 295.94 -1,260.92 2,541.62 2,424.51 117.10 21704 4,600.00 2,820.10 2,878.04 2,178.72 77.98 42.66 -110.968 296.79 -1,284.06 2,630.45 2,51023 12022 21.680 4,700.00 2,865.81 2,896.10 2,186.33 80.46 43.11 -114.476 29727 -1,300.43 2,719.09 2,595.93 123.16 22.078 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 6 of 15 COMPASS 2003.16 Build 42 Marathon Oil ~ MARaTHON Anticoilision Report ~omp~ny ALASKA Lt+CC~t ~o~rs#m~te l~~e "r~t1~ ., Welt G0 5 „ #~~~~ ~ NINILCHIK T{/p~{~~p~~ ~ `'r WELL @ 187.OOft (Original Weli Elev) l~f~i`~~er~i~~ .; , iGRASSIM OSKOKOFF PAD MDI~e#~~i~ri~w ;; ~~ WELL @ 187.OOft (Original Well Elev) 5ifi~~Errd~`: `~ ' O.OOft ~ Nork~t R8fer4t#it:e: ~ ~' True ~ F~f~ret-caklMelt: '~~ ~~GO 5 r~t~rv~~tG~leala#~on-Methfbi~; , ~~~ Minimum Curvature Vltel~'~l~r t, O.OOft O~ttput~~rol's,8t#~!at . 2.00 sigma ~ ~2e~~~~~e;V~i~kljl~rr`e `:GO 5- OH p'atabage ~' EDM 2003.16 Single UserDb ER~rence desigf~: , Final INTEQ Plan (~#Fsea# Typ ttefe~ernasJ' , Offset Datum ~ ~fse~~Destgn ~~~ GRASSIM OSKOKOFF PAD - GO 2- GO 2- OH - Original wellbore ,~~~~`~`~~~ ~~~; ~` ': 9urv9y progrdmr i09-M#Y{3tfiaY#ZCk. ~SZd,MN+L11frTft{1 ' tQ~sV~Y,Y1fe~'~q~f^ ' , ii.tSb~l~ ; ' . ~ 1~~i@I'~PQB . : (~f¢~ i S~Ki~ ~IIB~Df A7~115 : ~. : ' , ~.. ,,~q L7/4kJEl~.`hr ~. . ~ , ' ~ rae~+,ma - veraapF t~ra~ ~ ~ar~oai ti.fie+em~ a~see eNg~ ~ weub~e ~ ' ~aetaveoti ~a~+; MnNmw,r ~a~m , ~w~ u~~iz GeWM ~ . DeqMY beMh ~ Yri~s~e! +HI-s , +Et.Nt " `~ Ca~ss~ `~IUpsas ~ra~ion fa~ ~ ~~ ` ~~i; {~H ~i tftl tt~}, {n1 (~) ~~ (~, (°~ i {e3 {fi~i 4~~'~;t ~ ... tflh tR7,,,r , , , `~ :s. , 4,800.00 2,914.59 2,929.12 2.20025 82.45 43.94 -117.556 297.88 -1.330.37 2,807.39 2,887A2 125~97 22286 4,900.00 2,966.39 2,957.30 2,272.15 84.43 44.65 -120.506 298.14 -1,355.91 ~2,895.33 2,766.67 128.66 22.504 5,000.00 3.021.14 2,980.84 2,222.10 86.42 45.23 423.296 298.17 -1.37724 2,982.79 2,857.55 13124 22728 5,100.00 3,078.78 3,02020 2,238.78 88.40 46.22 -125.680 297.89 -1,412.89 3,069.75 2,935.54 13427 22.873 5,200.00 3,13924 3,03674 2,24579 90.38 46.63 -128.170 297.66 ~ -1,427.87 3,156.00 3,019.39 136.61 23.102 5,300.00 3,202.44 3,069.83 2,259.80 92.02 47.46 -130247 297.10 -1,457.84 3,241.55 3,102.46 139.08 23.307 5,400.00 3268.31 3,104.14 2,274.30 93.65 48.32 -132.128 296.38 -1,488.93 3,32627 3,184.69 141.58 23.494 . 5,500.00 3,336.76 3,14420 2,291.18 95.29 49.32 -133.758 295.39 -1,52524 3,410.12 3,265.89 14423 23.644 5,600.00 3,407.71 3,186.31 2,308.94 96.92 50.38 -135.210 29425 -1,563.41 3,492.96 3,346.03 146.92 23.774 5,700.00 3,481.08 3,228.52 2,326.77 98.55 51.43 -136.528 293.09 -1,601.65 3,574.67 3,425.05 149.63 23.891 5,800.00 3,556.78 3,269.70 2,344.22 99.79 52.46 -137.746 291.81 -1,638.93 3,655.35 3,503.45 751.90 24.064 5,900.00 3,634.71 3,314.81 2,363.33 701.02 53.59 -138798 290.34 -1,679J6 3,734.89 3,580.62 15427 24209 6,000.00 3,714.77 3,36428 2,38425 10226 54.83 -139.687 28877 -1,724.57 3,813.19 3,656.43 156.76 24.325 6,100.00 3,796.69 3,412.30 2,404.54 103.49 56.03 -140.516 28725 -1,768.07 3,89022 3,731.01 15920 24.435 6,200.00 3,880.94 3,456.50 2,42326 104.73 57.14 -141.326 285.81 -1,608.07 3,965.99 3,804.44 161.56 24.549 6,300.00 3,966.83 3,495.88 2,439.95 105.72 58.12 -742.137 284.45 -1,843.72 4,040.55 3,877.02 163.54 24.707 6,400.00 4,054.46 3,522.90 2,451.38 10670 58.80 -143.060 283A5 -1,868.18 4,113.95 3,94874 ~ 165.21 24.901 6,500.00 4,143.71 3,562.38 2,468.07 107.70 59*79 -143.743 281.83 -1,903.93 4,186.16 4,018.97 167.19 25.038 6,600.00 4,234.48 3,601.83 2,464.73 10870 60.77 -144.373 280.01 -1,939.63 4,25722 4,088.04 169.18 25.164 ~ 6,700.00 4,326.68 3,664.19 2,511.09 109.70 62.34 -144.638 27727 -1,996.08 4,326.62 4,155.09 171.73 25.195 6,800.00 4,420.14 3,710.50 2,530.71 110.45 63.49 -145.082 275.29 -2,037.99 4,394.96 4,221.32 173.64 25.311 6,900.00 4,514.80 3,749.18 2,547.10 11120 64.46 -145.587 273.59 -2,072.98 . 4,46177 4,286A2 175.35. 25.445 7,000.00 4,610.53 3,786.95 2,563.08 111.95 65.41 -146.063 271.82 -2,107.16 4,527.30 4,35026 177.04 25.572 7,100.00 4,707.21 3,832.14 2,562.21 112.70 66.54 -146.407 269.63 -2,148.04 4,591.47 4,412.55 178.92 25.662 7,200.00 4,80472 3,891.45 2,607.33 113.45 68.02 -146.538 266.85 .~ -2,20170 4,654.17 4,473.02 181.15 25.693 7,300.00 4,902.94 3,956.18 2,634.69 114.15 69.fi4 -146.574 264.10 -2,26029 4,71529 4,531.83 183.46 25J02 7,400.00 5,00176 4,02128 2,66220 114.85 7127 -146.583 261.66 -2,31925 4,774.80 4,589.02 16578 25701 7,500.00 5,101.05 4,09222 2,692.18 115.55 73.05 -146.498 259.42 -2,383.51 4,832.67 4,644.41 188.25 ~ 25.671 7,600.00 5,200.70 4,132.35 2,709.14 116.25 74.05 -146.763 25825 -2,419.85 4,889.04 4,699.09 189.95 25.738 7,700.00 5,300.57 4,181.11 2,72974 116.95 75.27 -146.897 256.83 -2,464.03 4,944.02 4,752.15 191.87 25768 7,789.99 5,390.55 4,224.86 2,748.17 117.39 76.36 -164.792 255.68 -2,503.69 4,992.23 4,798.49 193.73 25.768 7,800.00 5,400.56 4,228.61 2,749.75 117.45 76.46 -164.748 255.58 -2,507.09 4,997.53 4,803.65 193.88 25.777 7,900.00 5,500.56 4,266.18 2,765.61 117.95 77.40 -164.309 254.56 -2,541.14 5,051.13 4,855.81 195.32 25.861 8,000.00 5,600.56 4,306.97 2,782.66 118.45 76.42 -163.834 253.39 -2,578.07 5,105.80 -4,908.96 196.84 25.939 8,100.00 5,700.56 4,347.82 2,800.17 118.95 . 79.44 -163.362 252.17 -2,615.05 5,161.49 4,963.12 198.36 26.020 8,200.00 5,800.56 4,38674 2,816.65 119.45 80.41 ~ -162.915 251.00 -2,65029 5,218.18 5,018.34 199.84 26.112 8,286.44 5,887.00 4,41528 2,82872 119.88 81.13 -162.588 250.13 -2,676.15 5,267.98 5,067.00 200.98 26211 8,300.00 5,900.56 4,419.30 2,830.42 119.95 8123 -t62.542 250.00 -2,67978 5275.86 5,07471 201.15 26228 8,400.00 6,000.56 4,448.96 2,642.98 120.45 81.97 -162205 248.97 -2,706.64 5,334.56 5,132.16 202.39 26.357 8,500.00 Q100.56 4,489.68 2,860.25 120.95 82.99 -161745 247.45 -2,743.48 5,39420 5,19029 203.91 26.453 5,600.00 6,200.56 4,543.65 2,883.15 121.45 84.34 -161.140 245.49 -2,792.30 5,454.67 5,248.90 205.76 26.509 8,700.00 6,300.56 4,605.38 2,909.41 121.95 85.68 -160.452 243.48 -2,848.14 5,515.80 5,307.99 207.81 26.543 . 8,800.00 6,400.56 4,652.03 2,929.17 122.45 87.05 -159.936 242.15 -2,890.38 5,577.66 5,368.18 209.48 26.627 8,900.00 6,500.56 4,694.89 2,947.33 122.95 88.12 -159.464 240.95 -2,929.18 5,64028 5,42923 211.05 26.725 9,000.00 6,600.56 4,753.91 2,972.45 123.45 89.59 -158.821 23927 -2,982.56 5,703.61 5,490.58 213.02 26.774 9,100.00 6,700.56 4,808.66 2,995.84 123.95 90.97 -158227 237.97 -3,03227 5,767.51 5,552.61 214.90 26.838 9,200.00 6,800.56 4,850.32 3,013.44 124.45 92.01 -157.781 237.09 -3,069.80 5,832.09 5,615.65 216.44 26.946 9,300.00 6,900.56 4,882.31 3,026.98 124.95 92.81 -157.439 236.39 3,09877 5,897.40 5,679.66 21774 27.085 9,400.00 7,000.56 4,937.06 3,050.12 125.45 94.18 -156.857 235.18 -3,148.37 5,963.41 5,743.80 219.61 27.155 9;500.00 7,100.56 5,009.13 3,080.64 125.95 95.98 -156.097 234.02 3,213.65 6,029.85 5,807.94 221.91 27.173 9,600.00 7,200.56 5,05323 3,099.39 126.45 97.08 -155.637 233.40 -3,253.57 Q096.80 5,87329 223.51 27277 9,700.00 7,300.56 5,091.18 3,115.46 126.95 98.03 -155.243 232.91 3,287.94 6,164.39 5,939.42 224.96 27.402 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min eilipse separation 12/5/2006 12:06:02PM Page 7 of 15 COMPASS 2003.16 Build 42 ~ ~ MARdTHOq Marathon Oil Anticollision Report ! ALASKA Lvcat Go~trrclin~ ~~NINILCHIK 'ry~.~~~~;, ! GRASSIM OSKOKOFF PAD 141p Re~~~tftt~~ ~', i O.OOft North Ite#erence: GO 5 Sunra}r C~#aulsficl O.OOft k~ieE~ut ~o1f~ ar#' GO 5 - OH ~ p~~gg, `~~ ~~.; Final INTEQ Plan ~ Qffs~i'l1TD R~fere C~ +~rre~iics~', ; . , ;; Well GO 5 CJ~gef[~igtt ; GRASSIM OSKOKOFF PAD - GO 2 - GO 2 - OH - Original wellbore ~ ~ ~ ~ ;z~~~~~~~~ ~~~ ~ `~ ~uMey P~~B~'Afl~ 7Q4! MWA~«~ ~~r~tft%l~6tGkYRQ ~, ~ ? ~ ; - , -; ~ek1NA1F~+fh7r; A~SYth @ , ,RefeYpryc~ ` ' 'i OPPaafi ' ~ ' ' Sem) MajoF'A~tis~; , ~ - i ~g ' ,: ., NloasitY4tl YeFifcal ~'~ ~MBas4red Yea'tlGat Ret'grenee tfH9it -" NCgfHt#da ilffaet YJellbu~ CaMre , 9etw~-Y ~ai,vraqm ~+iMimulY~ S4~':"dt~in ~'~jY°~i'~5~11~ ~eM~ IXsi~ DePth ~P~h •, ~ ~~`ac~(fdc8 i~/*5 ' a~J~W Cen~ss• k~~pse~s $apavi-krf ~ac~t , C#ek ~ ' r aHtl' tftk' , ~~tt (tt1 ~. ~` - t"# t~~ „ ~) .`, : fff! ~ {~ , t~Si;, 3+ ~ ~ 9,800.00 7,400.56 5,151.30 3,140.86 127.45 99.54 -154.624 232.30 -3,342.43 6,232.50 6,005.64 226.97 2Z460 9,900.00 7,500.56 5,184.08 3,154J2 127.95 100.36 -154288 232.00 3,372.13 6,301.16 6,072.87 22829 27.602 10,000.00 7,600.56 5,218.67 3,169.34 126.45 10122 -153.937 231.59 3,403.46 6,370.43 6,14078 229.65 27740 10,100.00 7,700.56 5,286.52 3,198,07 128.95 102.92 -153.254 230.87 3,464.94 6,440.18 6,208.33 231.85 27.778 10,200.00 7,800.56 5,361.61 3,229.86 129.45 104.80 -152.504 230.73 -3,532.97 6,51020 6,275.97 23423 . 27.795 10,300.00 7,900.56 70,266.00 6,762.47 129.95 18071 -129.477 246.30 -6,366.29 6,543.32 6,23272 310.60 21.067 10,386.44 7,987.00 10,363.91 6,858.17 130.38 181.44 -129.367 245.29 -6,386.96 6,558.09 6,246.32 311.77 21.035 . CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 8 of 15 COMPASS 2003.16 Build 42 Marathon Oil MARATHON AntICOIIISI0C1 RBp01"t ~~impany: ALASKA I~ocal Go»ordinat~ Refs~liice: Well G0 5 f~k~je~: " • 1NINILCHIK ~T51tili~ferenCi~;;; ~~ WELL @ 187.OOft (Original Weli Elev) l~~~erenceSite: ' '~~~GRASSIM OSKOKOFF PAD ~ MD Refere~sce: '~ ~~.~ WELL @ 187.OOft (Original Well Elev) S~'f+x.~cror: O.OOft Ngitfi I~ef~rgtty~~~, True ~~eteTtC~Vll4elt:~: " " ~"-G05 ~~rrre~.CaCCttYa;ti¢~[~k~I~dW. ~~ MinimumCurvature ~II L~iqr: ~ O.OOft ~Outputterrnrs ark ~t ~ 2.00 sigma ~ ~ Refbrence W~Ilhore GO 5- OH flatabase: ' EDM 2003.16 Single User Db Refere~C~ p~sggn ~'"=Final INTEQ Plan ~ p#(~~#'~/pR~~¢~scx; ~ Offset Datum ~ ~4YfF9et17esi~it - ~ GRASSIM OSKOKOFF PAD - GO 3 - GO 3 - OH - Original wellbore ~ ~ ~ ~ ~~~~~~ °~{~?~ ~~' ~ S~frveYfi~ugraM~ "; T69-MWUiG'YRC} ' , ~~t6afWejl~rro~' `'~~0~# ;<; ; iietersrne :~ , „- 4Nfs' gt 5am)Ma~orAx~ „~ ~~~ '~. - , - WsmnC~ .: ~;;~ ~ ,'. If+k~li~ WB~Y MBSSUisd- Yettlca6 t~e#er~rfce 4 Hfss4,; , Hfyl~MrfM 1~lfs$kWblNb6a4~'islabb, ~ 9elwa0n w ~ BetWaeAi Mbi1fh4m ~Bp~~`Con ~ r~ IAi~ilt~4 GRpMv ~ ~Rtry pepth ' 6epth ,~ ; , . TunNac~ , ' ; +N/+S ' ! +E~, ?~aMY~ -: ; E~li¢§#S $ep~ibn `~dct~r . ,C~~g , „ _ , ~ '~~ , f~l~, ~ _ ~ {~~" ; , "~ . , , . _ ~ (tk} = „ T ~~ i (~ ~ {ttl „ i~~:~ ~ ~ ~1+~ (ft4 =' ° 0,00 0.00 0.00 0.00 0.00 0.00 27.996 138.55 73.66 156p92 0.00 0.00 0.00 0.00 0.00 0.00 27.996 138.55 73.66 156.92 100.00 ~ 100.00 98A2 98.42 0.40 0.60 28.027 138.95 73.96 157.42 156.42 1.00 157.662 200.00 200.00 19870 198.69 0.90 124 28.085 10.0.06 7474 158.75 156.6t 2.14 74217 300.00 300.00 305.21 305.16 7.40 1.99 27.338 139.99 72.37 157.67 154.29 3.38 46.586 400.00 400.00 413.00 412.49 1.90 2.74 24.573 137.72 62.97 151.95 147.31 4.64 32.753 500.00 500.00 516.51 514.64 2.40 3.49 19257 134.01 46.82 142.71 136.82 5.89 24.242 . 600.00 600.00 61928 614.62 2.90 427 10.411 129.01 23.70 131.98 124.83 7.16 18.439 700.00 700.00 718.38 708.65 3.40 5.18 3.104 121.62 -6.60 122.10 113.53 8.57 14252 760.67 760.67 774.62 760.67 370 575 -13205 116.64 -2737 119.61 110.37 9.43 12702 CC, ES 800.00 800.00 810.19 793.03 3.90 6.11 -20.245 113.25 -41.77 120.91 110.92 9.98 12.110 900.00 899.87 897.00 870.13 4.60 6.98 -20.327 103.88 -80.49 130.76 119.20 11.55 11.320 SF 1,000.00 998.99 977.83 939.61 5.30 8.00 36.241 93.92 -120.55 150.95 137.69 13.26 11.384 1,100.00 1,096.58 t,050.53 999.71 6.05 8.92 -48.553 8420 -16027 183.31 168.38 14.92 12284 ~ 1,200.00 1,191.93 1,118.71 1,053.80 6.81 978 -57.605 7475 -200.67 22673 210.20 16.53 13.715 1,300.00 1,28428 1,189.00 1,10825 7.82 10.66 -64.669 64.88 -244.03 277.51 259.09 18.42 15.066 1,400.00 1,372.96 1,254.94 1,158.97 7.82 11.68 -69.447 5576 -285.16 33279 313.35 19.44 17.120 . 1,500.00 1,45727 1,309.45 1,200.03 9.08 12.59 -71.857 4776 320.10 393.07 371.47 21.59 18202 1,600.00 1,536.58 1,357.32 1,235.01 9.08 13.38 -72.762 40.11 -351.67 458.42 436.03 22.39 20.475 1,700.00 1,61028 1,397.00 1,26326 10.76 14.05 -72221 33.49 376.93 527.93 503.24 24.69 21.381 1,800.00 1,677.82 1,441.12 1,294.04 1076 1478 -71.616 25J2 -009.58 600.69 575.27 25.42 23.633 1,900.00 1,738.68 1,474.81 1,317.16 12.80 15.34 -69.569 19.39 -433.24 676.16 64820 27.96 24.183 . 2,000.00 1,792.39 ~ 1,502.52 1,335.66 t2.80 15.80 -66.614 13.95 -452.95 753.90 725.50 28.40 26.547 2,100.00 1,838.55 1,524.00 1,350.13 15.35 16.16 -62.839 9.59 -468.41 833.35 802.13 31.22 26.693 2,140.00 1,85482 1,524.00 1,350.13 16.37 16.16 -60.449 9.59 -468.41 865.56 833.36 32.20 26.880 2,200.00 1,87826~ 1,54475 1,363.67 17.88 16.58 -62.487 5.33 -483.54 914.40 88027 34.14 26785 ~ 2,300.00 1,917.34 1,563.66 1,37575 20.40 16.96 -64271 1.48 -497.56 99820 961.16 37.04 26.951 ~~ 2,400.00 1,956.41 1,589.00 1,391.51 22.91 17.48 -66.545 3.62 -516.74 1,084.29 1,04422 40.07 27.062 2,500.00 1,995.48 1,601.30 1,399.01 25.43 17.73 -67.599 -6.09 -526.18 1,172.09 1,12926 42.82 27.369 2,600.00 2,034.55 1,619.86 1,410.15 27.94 18.10 -69.133 -9.82 -540.55 1,261.31 1,215.60 45.77 27.593 2,700.00 2,073.63 1,638.11 1,420.89 30.44 18.47 -70.571 -13.50 554.83 1,351.68 1,303.09 48.59 27.818 2,800.00 2,112.70 1,652.00 1,428.94 32.95 18.75 -71.621 -16.31 -565.80 1,442.98 1,391.60 51.38 28.086 2,900.00 2,151.77 1,670.82 1,439.62 35.46 19.13 -72.978 -20.12 -580.83 1,535.07 1,480.80 54.27 28288 3,000.00 2,190.85 1;685.77 1,447.87 37.96 19.44 -74.000 -23.16 -592.90 1,627.85 1,570.77 57.07 28.521 3J00.00 2229.92 1,700.35 1,45575 40.4~ 1973 -74.952 -26.14 -604.81 1,72121 1,661.34 59.88 28746 3,200.00 2,268.99 1,715.00 7,463.48 42.97 20.03 -75.863 -29.14 -616.89 1,815.08 1,752.40 62.68 28.959 3,300.00 2,308.06 1,731.15 1,471.82 45.47 20.44 -76.820 -32.45 -630.32 1,909.36 1,843.77 65.59 29.110 3,400.00 2,347.14 1,747.49 1,480.12 47.98 20.85 -77741 -35.82 -643.99 2,003.99 1,935.46 ~ 68.51 29252 3,500.00 2,386.21 1,763.52 1,488.11 50.48 2125 -78.600 39.12 -657.48 2,098.92 2,027.50 71.42 29.390 ~ 3,600.00 2,42528 1,778.00 1,49521 52.98 21.62 -79.347 -42.12 -669.74 2,t94.12 2,119.83 7429~ 29.536 3,700.00 2,464.36 1,797.14 1,504.43 55.49 ~ 22.10 -80.269 -46.07 -686.05 2,289.54 2,21227 7727 29.629 3,800.00 2,503.43 1,814.69 1,512.71 57.99 22.55 -81.070 -49.67 -701.09 2,385.16 2,304.94 80.22 29.733 . 3,900.00 2,542.50 1,840.00 1,524.37 60.49 23.18 -82.149 -54.84 -722.95 2,480.97 2,397.61 83.36 29761 4,000.00 2,581.57 1,840.00 1,524.37 62.99 23.18 -62.149 -54.84 -722.95 2,576.93 2,491.07 85.86 30.012 4,100.00 2,620.65 1,865.53 1,535.78 65.49 23.83 -83.149 -60.02 -745.20 2,673.00 2,583.99 89.01 30.030 4,200.00 2,659.72 1,881.87 1,542.88 67.99 24.24 -83.744 -63.31 -759.54 2,769.23 2,677.31 91.92 30.125 4,300.00 2,69879 1,904.00 1,55227 70.50 24.80 -84.499 -67.74 -779.08 2,865.59 2,770.61 94.98 30.169 ~ 4,400.00 2,737.87 1,904.00 1,55227 73.00 24.80 -84.499 -6774 -779.08 2,962.07 2,864.59 97.48 30.385 4,439.99 2,753.50 1,919.35 ~ 1,558.62 74.00 25.19 -84.988 -70.81 -79271 3,000.66 2,90179 98.87 30.349 4,500.00 2,77752 1,928.32 t,56229 75.49 25.41 -89.728 -72.60 -800.71 3,058.63 2,958.03 100.61 30.402 ~ 4,600.00 2,820.10 1,943.65 1,568.44 77.98 ~ 25.80 -97.573 -75.66 -814.40 3,155.31 3,051.83 103.49 30.490 4,700.00 2,865.81 1,967.00 1,577.59 80.46 26.39 -105.113 -80.33 -835.37 3,251.98 3,145.42 106.56 30.519 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 9 of 15 COMPASS 2003.16 Build 42 Marathon Oil ~ MARATHON Anticoilision Report ~ ~~-tfp~jny: ~ ~ ALASKA ~ ~ ~~ L+t~al ~kli~i~EClirtat~ li~8t+~~•. "~' „ , , ~ WeII G0 5 #~~k~jkk~ ~~ NINILCHIK ~ ~ ~ 7Vt~~f~+~fi~ten¢~: !~ WELL @ 187:OOft (Original~ Well Elev)~ R~f,~rehce5ika: ~~ ~ '~GRASSIM~OSKOKOFF PAD A~6~~{gretrce; ,~% ~ ' WELL @ 187.OOft (Original Well Elev)~~ ~ S~#~ ~t'~+ar O.OOft ~ ~ Nai~fi I~f~r~h~t~; ,~ ; True ~~ ~ ~ R~fet~fi~ ~At~if;.;' . ~i GO 5 SuTVey CalculaEiqh fNethb!~t ~ '~ Minimum Curvature {Neil;~rror: ~O.OOft ~ (I~tp~~;~rrqtsar#at ~, ~ ~'2.OOsigma ~ I~f¢h~(~ce Wel#bore '~ GO 5- OH ` {latab~ ,~ EDM~2003.16 Sfngle User Db ~#~~tGe ~iegp~tt;. ~. . : Final INTEQ Plan QfF~~'f5f[~,~hhp~n~; Offset Datum ~ ~ K34`fs~! Q~~~ ; '! , GRASSIM OSKOKOFF PAD - GO 3- G0 3- OH - Original wellbore '~sne~t 4~o~ft' = 1 , ,BNrr;e~ Pr~ri~, ' ;; f69.Mt~YptGYRO ' ?' ,'' .YlFlsetV11e11 frrae; , i ~ ~ ,'D.W ft~. '~ - ~~. 'Refetghca ~i,Afi~gt SemlMa)oFARI~~. tYtg'tahcd ..- e Moasu~afl~ S~ertlcai Meeswed Yerfkat-' ~afeYence' t~fs8f . Ht~ilisld~ `. ~~"Clf~strfYXdlli}rir4C9aMa;,~:~;, iietrvqCn 'E~elwe~n~ M~1fhiGm Sep'~"a~n ~ry~ t~4pYfi tt,aYeh; ~t41~h t7~h ". ~ , ~. F7qpkFp;~ .' '+ta~,g > *Ef.`~N '' e 'CUtlfts~ ' ~1NHses. SeP~e'di~wf E$~a' . ~) , ~1 ~q Ik~ t~) t~l G'3~ (t~ ~ ~~ ~ (~ 6 d # e , , , ~ ~ . ~ 4,800.00 2,914.59 1,976.62 1,581~30 82.45 26.63 -112.032 -8225 -844.04 3,348.45 3,239.68 108.77 30785 4,900.00 2,966.39 1,995.39 1,588.50 84.43 27.10 -118.260 -86.03 -860.96 3,444.66 3,333.45 ii121 30.974 5,000.00 3,021.14 2,014.50 1,595.78 86.42 27.58 -123.740 -89.91 -878.20 3,540.49 3,426.83 113.66 31.150 5,100.00 3,078.78 2,037.57 1,604.51 88.40 28.16 -128.437 -94.63 -899.03 3,635.83 3,519.62 11621 31.286 5,200.00 3,13924 2,076.30 1,618.98 90.38 29.13 -132.157 -102.43 -934.09 3,730.51 3,617.35 119.16 31.307 5,300.00 3202.44 2,093.00 1,625.15 92.02 29.55 -135760 -10573 -94925 3,824.45 3,70324 12121 31.553 5,400.00 3,268.31 2,093.00 1,625.15 93.65 29.55 -139276 -10573 -94925 3,917.80 3,794.96 122.84 31.893 . 5,500.00 3,33676 2,122.75 1,635.99 9529 30.30 -14i.733 -11173 -976.30 4,01023 3,885.00 12522 32.024 . 5,600.00 3,407.77 2,134.13 1,640.07 96.92 30.59 -144.260 -114.11 -986.66 4,101.99 3,974.84 127.15 32.261 5,700.00 3,481.08 2,156.00 1,647.83 98.55 31.14 -146266 -118.80 -1,006.56 4,192.96 4,063.62 129.34 32.418 ~ 5,600.00 3,55678 2,156.00 1,647.83 99.79 31.14 -148.492 -116.60 -1,006.56 4,282.96 4,152.38 ~ 130.58 32799 5,900.00 3,634.71 2,182.64 1,657.19 101.02 31.80 -149.939 -124.64 -1,030.80 4,372.00 4,239.51 132.50 32.997 6,000.00 3,714.77 2,208.16 1,666.15 10226 ~ 32.44 -151241 -73027 -1,054.03 4,459.95 4,325.57 134.38 33.189 ~ 6,100.00 3,796.89 2,234.47 1,675.37 103.49 33.10 -152.384 -136.12 -1,077.97 4,54675 4,410.46 13628 33.362 6,200.00 3,880.94 2,261.59 1,684.93 10473 3378 ~-153.390 -14221 -1,102.60 4,632.35 4,494.14 ~13821 33.517 6,300.00 3,966.83 2,292.52 1,695.90 105.72 34.56 -154225 -14923 -1,130.66 4,716.71 4,576.73 139.98 33.696 6,400.00 4,054.46 2,333.95 1,710.64 106.70 35.60 -154.799 -158.63 -1,16822 4,799.71 4,657.70 142.01 33.798 6,500.00 4,143.71 2,387.88 1,729.91 107.70 36.95 -155.109 -170.74 -1,217.11 4,88127 4,736.91 144.36 33.814 6,600.00 4,234.48 2,466.78 1,758.03 108.70 38.93 -154.994 -187.77 -1,288.83 4,961.12 4,813.80 147.33 33.675 6,700.00 4,326.66 2,49825 1,769.10 10970 3971 -155.572 -194.35 -1,317.55 5,039.45 4,890.35 149.11 33798 6,800.00 4,420.14 2,525.00 1,778.41 110.45 40.39 -156.162 -199.92 -1,342.00 5,116.35 4,965.83 150.52 33.991 6,900.00 4,514.80 2,551.64 1,787.64 11120 41.05 -156702 -205.49 -1,366.36 5,191.82 5,039.89 151.93 34.171 7,000.00 4,610.53 2,585.00 1,799.13 111.95 41.89 -157.103 -212.54 -1,396.87 5,265.87 5,112.35 153.52 34.302 7,100.00 4,70721 2,585.00 1,799.13 11270 41.89 -157.910 -212.54 -1,396.87 5,338.44 5,184.16 15426 34.607 7,200.00 4,804.72 2,585.00 1,799.13 113.45 41.89 -158.660 -212.54 -1,396.87 5,409.68 5,254.67 155.00 34.900 7,300.00 4,902.94 2,616.86 1,810.08 114.15 42.69 -758.955 -219.53 -1,425.96 5,47927 5,322.77 156.50 35.011 ~ 7,400.00 5,001.76 2,648.00 1,82078 114.85 43.47 -159231 -226J6 -1,454.30 5,547.57 5,389.60 757.98 35.117 ~ 7,500.00 5,101.05 2,648.00 1,820.78 115.55 43.47 -159.855 -226.76 -1,454.30 5,61420 5,455.53 158.67 35.383 7,600.00 5,200.70 2,697.43 1,837.80 11625 44.70 -159.856 -238.38 -1,49923 5,67929 5,518.70 160.60 35.363 7,700.00 5,300.57 2,711.00 1,842.49 116.95 45.04 -160251 -241.51 -1,511.57 5,742.60 5,580.97 161.63 35.529~ 7J89.99 5,390.55 2,74027 1,852.58 117.39 4578 -178.184 -248.35 -1,538.18 5,798.13 5,634.97 163.16 35.537 7,800.00 5,400.56 2,741.91 1,853.15 117.45 45.82 -178.166 -24873 -1,539.67 5,80424 5,640.99 16325 - 35.554 7,900.00 5,500.56 2,75829 1,85879 117.95 4623 -177.982 -252.65 -1,554.54 5,865.85 5,701.68 164.16 35.732 8,000.00 5,600.56 2,776.00 1,864.88 118.45 46.67 -177.784 -256.95 -1,570.61 5,928.40 5,763.29 165.11 35.907 8,100.00 5,700.56 2,919.29 1,913.97 118.95 50.71 -176.189 -289.71 -1,701.18 5,991.23 5,821.59 169.64 35.317 8,200.00 5,800.56 2,947.00 1,923.47 119.45 51.40 -175.683 -295.81 -1,726.48 6,054.85 5,884.01 170.84 35.442 8,286.44 5,887.00 2,991.64 i,938.85 119.88 52.71 -175.393 -305.70 -1,76721 6,110.49 5,937.91 172.58 35.407 8,300.00 5,900.56 3,006.10 1,943.80 119.95 53.18 -175234 308.83 -1,780.42 6,11925 5,946.14 173.11 35.349 8,400.00 6,000.56 3,045.43 1,95721 120.45 54.31 -174.803 -317.16 -1,816.45 6,184.24 6,009.49 17475 35.389 8,500.00 6,100.56 3,067.48 1,964.73 120.95 54.86 -174.563 321.87 -1,836.63 6,250.02 6,07421 175.80 35.551 8,600.00 6,200.56 3,094.00 1,97379 121.45 ~ 55.53 -174275 327.64 -1,860.88 6,316.58 6,139.61 176.97 35.694 8,700.00 6,300.56 3,125.40 1,984.54 121.95 56.31 -173.935 -334.53 -7,889.56 6,383.86 6,205.60 17825 35.813 ~ 8,800.00 6,400.56 3,157.00 1,995.39 122.45 57.10 -173.595 -341.46 -1,918.42 6,451.79 6,27224 179.54 35.934 6,900.00 6,500.56 3,174.72 2,001.47 122.95 57.67 -173.406 -345.38 -1,934.60 6,520.42 6,339.80 180.61 36.102 9,000.00 6,600.56 3J89.45 2,006.51 123.45 58.14 -173248 348.70 -1,948.04 6,589J8 6,408.19 181.59 36290 9,100.00 6,700.56 3,279.00 2,016.60 123.95 59.09 -172.934 355.50 -1,974.97 6,659.88 6,476.84 183.03 36.386 ~ 9,200.00 6,800.56 3,219.00 2,016.60 124.45 59.09 -172.934 -355.50 -1,974.97 6,730.58 6,547.05 183.53 36.672 9,300.00 6,900.56 3,258.04 2,029.90 124.95 60.07 -172.522 -364.63 -2,010.51 6,801.93 6,616.92 185.01 36765 9,400,00 7,000.56 3,29132 2,04128 125.45 60.90 -172.173 -372.42 -2,040.81 6,873.80 6,687.46 186.34 36.888 9,500,00 7,100.56 3,315.66 2,049.64 125.95 61.51 -171.919 378.19 -2,062.92 6,94623 6,75878 187.45 37.056 9,600.00 7,200.56 3,341.00 2,058.37 126.45 62.14 -171.656 38429 -2,085.92 7,01922 6,830.63 188.59 37220 9,700.00 7,300.56 3,369.12 2,068.09 126.95 62.85 -171.367 391.15 -2,111.40 7,09274 6,902.95 18979 37.372 ~ CC - Min centre to center distance or covergent point, SF - min separatio~ factor, ES - min eliipse separation 92/5/2006 12:06:02PM Page 10 of i5 COMPASS 2003.16 Buiid 42 ~ ~ ~ Marathon Oil MARATHON Anticollision Report NINIICHIK GRASSIM OSKOKOFF PAD O.OOft GO 5 O.OOft G05-OH Final INTEQ Plan JVeII G0 5 JVELL @ 187.OOft (Original Well Elev) JVELL @ 187.OOft (Original Well Elev) frue Vlinimum Curvature ?.00 sigma =DM 2003.16 Single User Db Jffset Datum GRASSIM OSKOKOFF PAD - GO 3- G0 3- OH 9,800.00 7,400.56 3,398.34 2,07821 9,900.00 7,500.56 3,457.78 2,098,76 10,000.00 7,600.56 3,483.00 2,107.43 10,100.00 7,700.56 3,501.55 2,113.79 10,200.00 7,600.56 3,530.00 2,123.53 10,300.00 7,900.56 3,530.00 2,123.53 10,386.44 7,987.00 3,559.14 2,133.54 127.45 63.58 -171.067 127.95 65.06 -170.462 128.45 65.70 -170.206 128.95 66.16 -170.018 129.45 66.87 -169732 129.95 66.87 -169732 130.38 67.60 -169.442 wellbore -398.34 -2,137.84 7,16676 6,97574 191.02 37.516 -412.80 -2,191.71 7.24120 7,048.20 193.01 37.517 -418.80 -2,214.63 7,316.03 7,121.89 194.14 37.684 -423.27 -2,231.47 7,391.37 7,196.26 195.10 37.884 -43021 ~ -2,257.28 7,46721 7,270.89 196.32 38.037 -43021 -2,257.28 7,543.51 7,346.70 196.82 38.328 -437.50 -2,283.66 7,609.84 7,411.86 197.98 38.438 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 11 of 15 COMPASS 2003.16 Build 42 ~ ~ 5 G05-OH Final INTEQ I rue 4inimum Curvature .00 sigma :DM 2003.16 Single User Db )ffset Datum ~ltfaet;F~sig-t , ~ ` ~ GRASSIM OSKOKOFF PAD - GO 4 - GO 4 - OH - OH Original hole ~ ~ ~ ~ ~~ ~ 4 ~~: :~_ ` Sue,reyProgram: `.t3$-rN4wlGYao - ~ .. _ ~~ DttsBCViteiF~;rCtl~re k~A„4ft<. Referer~ee ~ - OF[S6t , ; ~ , , ;, See~t MajryeAAtIF ~ ; , ; , tltatanee - ; , ; - "-;, r AAe?16um! Yerllcai Mseawed VarlG~t ; Refs[anas'- ' UHq!# r,~iigM'sid~. ~'~ Qffsat Wetlbu7e Cetdcdi, `! BaCv~iasn~~, BalWOen~ ~N±n4 S~partltlon ,; °,,,, „ 4YaCliYiY~ t 7ie pktt ptl+~ 1Ja ~ Oa p'~ Ra ~ ~ ~:. : '4"oo Hat'6;, ; `;~yp.g - ,,. +~ r ' Cetkrp6' pN~. ~~ Fab~r ;+ f - ~ ~: ' ~ h ~' y M1~ „ { t'~t' ' y~ ` 5!*~.' /µ ~ ,A'.`1 .. ~ j~C~ ` . . ~ ~'~ / i~ „ ~. ~{~ t' ~ y ~~ ~ ' ~ ~~ ~ ' {g }"~ '~. l . '~~ ~~ P ~ . ~ .. . . ~ ; . , ~ ~~ ~~~ , ~ ~~ t . , .:.. : , , , / t, ..,... ~ .. I ,,.~:, , , r ,.:,~ ~ 0.00 0.00 O.W 0.00 0.00 0.00 52.173 83.30 10728 135.82 0.00 0.00 . 0.00 0.00 0.00 0.00 52.173 83.30 107.28 135.82 t00.00 100.00 97.59 97.58 0.40 0.58 51.783 64.56 107.39 136.70 135.73 0.97 140.319 ES 200.00 200.00 789.39 18922 0.90 1.18 50.318 89.49 107.86 140.57 138.49 2.07 67.771 300.00 300.00 274.73 273.18 1.40 1.82 46.203 104.32 108.80 153.10 149.89 3.21 47.685 400.00 400.00 359.71 354.19 1.90 2.57 39.685 129.86 108.52 175.33 170.88 4.45 39.376 500.00 500.00 449.17 436.95 2.40 3.47 32.613 163.51 104.62 204.10 19825 5.85 34.886 600.00 600.00 543.04 522.03 2.90 4.42 25.176 201.94 94.92 236.37 229.08 7.29 32.416 700.00 700.00 647.09 615.41 3.40 5.46 17.354 243.70 76.15 268.96 260.13 8.83 30.453 800.00 800.00 753.09 708.78 3.90 6.56 8.819 281.73 43.77 299.33 288.92 10.42 28.739 900.00 899.87 839.13 782.43 4.60 7.64 19.286 310.43 9.75 328.21 316.00 1220 26.897 1,000.00 998.99 916.98 847.51 5.30 8.62 73.716 337.81 -23.01 355.60 341.73 13.87 25.642 1,100.00 1,096.58 990.05 905.86 6.05 9.55 8.830 364.92 -57.59 381.93 366.42 1.5.52 24.615 1,200.00 1,791.93 1,060.00 958.56 6.81 10.68 4256 391.77 -94.93 407.64 39027 17.37 23.471 1,300.00 1,284.28 1,121.00 1,001.41 7.82 11.71 0.422 41675 -130.40 434.13 41478 19.35 22.439 1,400.00 1,372.96 1,167.71 1,031.04 7.82 12.67 -2.467 43721 -160.14 463.06 442.81 2026 22.861 1,500.00 1,45727 1,214.50 1,057.52 9.08 1378 -5266 458.56 -19225 494.65 472.09 22.56 21.926 1,600.00 1,536.58 1,260.85 1,080.79 9.08 14.96 -7.876 480.87 -225.54 528.47 504.78 23.69 22.310 ~ 1,700.00 1,610.28 1,308.00 1,101.83 10.76 16.16 -70.316 50420 -260.68 563.58 537.11 26.47 21292 1,800.00 1,677.82 1,347.10 1,116.95 10.76 17.44 -12.143 523.80 -290.93 600.06 572.38 27.68 21.675 1,900.00 1,738.68 1,370.00 1,124.60 12.80 18.19 -12.956 535.32 309.19 638.43 608.08 30.35 21.033 2,000.00 1,792.39 1,434.00 1,141.15 12.80 20.27 -15.833 567.88 -361.70 677.85 645.48 32.38 20.937 2,100.00 1,838.55 1,461.43 1,146.51 15.35 21.35 -16.641 58178 38473 717.37 681.49 35.88 19.991 2,140.00 1,854.62 1,481.59 1,15020 16.37 22.14 -17.413 59178 -401.84 733.09 695.42 37.67 19.461 .2,200.00 1,87826 1,520.50 1,156.87 17.88 23.51 -19.358 610.68 -435.19 757.56 716.97 40.59 18.665 2,300.00 1,917.34 1,598.67 1,170.75 20.40 26.02 -23.064 648.48 -50220 800.92 75524 45.68 17.533 ~ 2,400.00 1,956.41 7,689.35 1,187.63 22.91 28.94 -27.019 69229 -579.77 846.96 79579 51.17 16.553 2,500.00 1,995.48 1,771.54 1,202.59 25.43 31.74 30.017 735.94 -647.76 89420 837.67 56.53 15.819 2,600.00 2,034.55 1,852.09 1,216.56 27.94 34.61 -32.596 78020 -713.61 94325 881.30 61.94 15228 2,700.00 2,073.63 1,935.79 1,232.04 30.44 37.30 35.101 825.66 -782.15 99327 926.11 67.16 14.789 2,800.00 2,112.70 1,978.57 1,239.61 32.95 38.95 36.314 848.49 -817.53 1,045.77 974.43 71.34 14.659 2,900.00 2,151.77 2,029.29 1,24722 35.46 40.94 37.687 874.76 -860.24 1,101.93 1,026.08 75.85 14.528 3,000.00 2,190.85 2,100.11 1,257.32 37.96 4370 39.471 911.28 -920.07 1,159.86 1,07872 81.15 14294 3,100.00 2,229.92 2,168.33 1,26675 40.47 46.37 -41.049 946.47 -97775 1,218.97 1132.63 86.34 14.119 3,200.00 2,268.99 2,234.57 1,275.44 42.97 48.96 -02.456 980.63 -1,033.83 1,27928 1,187.83 91.45 13.989 . 3,300.00 2,308.06 2,305.50 1,28428 45.47 51.73 -43.837 1,01725 -1,093.92 1,340.60 1,243.86 96.74 13.858 3,400.00 2,347.14 2,416.89 1,300.55 47,98 56.08 -45.902 1,073.98 -1,188.37 1,401.60 1,296.00 103.60 13.529 3,500.00 2,386.21 2,510.00 1,316.88 50.48 5925 -47.543 1,121.11 -1,267.00 1,461.47 1,352.19 10928 13.374 ~ 3,600.00 2,42528 ~ 2,573.00 1,328.42 52.98 61.26 -46.602 1,152.59 -1,320.34 1,521.81 1,408.00 113.81 13.372 3,700.00 2,464.36 2,653.44 . 1,342.93 55.49 63.84 -49.860 1,192.75 -1,388.51 1,582.82 1,463.93 118.89 13.313 3,800.00 2,503.43 2,739.39 1,359.01 57.99 66.59 -51.125 1,235.57 -1,46128 1,643.93 1,51978 124.15 13.241 ~ 3,900.00 2,542.50 2,822.50 1,375.85 60.49 6925 -52.309 1,276.45 -1,531.65 1,704.89 1,575.58 129.32 13.184 ~ ~ 4,000.00 2,581.57 2,893.99 1,390.40 62.99 71.54 -53263 1,311.63 -1,592.16 1,766.18 1,632.06 134.11 13.169 4,100.00 2,620.65 2,967.52 1,40525 65.49 73.89 -54.186 1,34776 -1,654.46 1,827.95 1,688.98 138.97 13.153 4,200.00 2,659.72 3,050.80 1,422.60 67.99 76.56 -55.186 1,388.44 -1,725.02 1,889.86 1,745.72 144.14 13.111 4,300.00 2,69879 3,N8.56 1,437.13 70.50 78.73 -55.968 1,42129 -1,782.47 1,951.95 1,803.13 148.81 13.117 ~ 4,400.00 2,737.87 3,179.42 1,449.84 73.00 80.68 -56.633 1,450.65 -1,834.25 2,014.79 1,861.52 153.27 13.145 4,439.99 2,753.50 3,203.61 1,45479 74.00 81.46 -56.886 1,46227 -1,854.88 2,040.12 1,665.07 155.05 13.158 4,500.00 2,777.52 3,24223 1,462.58 75.49 82.69 -58.113 1,48079 -1,887.86 2,078.62 1,920.82 157.80 13.172 4,600.00 2,820.10 3,329.83 1,480.51 77.98 85.50 -60.344 1,522.56 -1,96274 2,144.07 1,980.95 163.12 13.144 4,700.00 2,865.81 3,991.77 1,714.66 80.46 103.88 -67.073 1,846.45 -2,486.48 2,205.12 2p21.14 183.98 11.966 4,800.00 2,914.59 4,077.89 1,755.40 82.45 106.04 -68.681 7,89172 -2,547.37 2,251.73 2,063.60 188.13 11.969 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min eliipse separation 12/5/2006 12:06:02PM Page 12 of 15 COMPASS 2003.16 Build 42 Marathon Oil ~ MARATHON Anticollision Report ~ ~amp~riy: ALASKA Lccal GG-oi'~~~~~ 12e1crexice: ,„ Well GO 5 , P1`~j~ct; ~ ~=NINILCHIK `T"Vt~ R~f~c~~:?~~ ~ WELL@ 187.OOft (Original Well Elev) ~ ' F'~~f~r,eSnc~3ifq. ~' ~~~ ~?GRASSIM OSKOKOFF PAD I~1~ RefeTextc~: ~~ ~ '~ WELL @ 187.OOft (Original Well Elev) ~ Si#e Erxar~: ~~ O.OOft ~ ~;~ftixtC~ I~ef~rence:~~~~ True ~ E~feretrce4Ve11:! ~ `~~G05 $urvey~a(CUla~att~AN'siF~tXd.,`~ ` ~MinimumCurvature 4Ye~k`~r~'Yr~r;; " 'O.OOft ~7t~tPkt~tr#rs~~aC ~ .,;~ `'; <" 2.OOsigma ~ ~ ~ R~Per~j~~e1NeN1b~'tS~ , '' GO 5- OH f~ata~; . ~ ~ EDM 2003.16 Single User Db ~ ~ff~~A~~~1~s[gn: ~ ~~; Final INTEQ Plan ~ ~ ~ ~1{fset'~~t3~Refs~'~t~~ea ~ . ~~... ' Offset Datum ~ ~ dffset E~sign "°{ ; GRASSIM OSKOKOFF PAD - GO 4- GO 4- OH - OH Original hole `~~~ ~,,, ~•~~°~ ? ~~r¢9 PEp9ramt ; ,.13~~h+6W[31C~1'Rf3 ~ ~ ~~. ~ t= • '~ ' r wr G~ AQ ~ ~~`'a4~r~ ~~ , , - ;' f#~is,rsryae , ~ ~ ~: URes t ~ Semb, ~ls~:~IS . ~ ! , ~Jaed+~ae ,' ` , , , , r , ~ ~AsbBui~1 ,~Vdi`dt81 Mea~ured~ ~ V9e#Ical - M~efel`9ns9~ , 4{fast ' MighSi~4, 4kaet4~oer Ceobe 9e4v1~'#n Eishv4$~i~ klNiilmum 5ep~bn Wi~~d,~ {~.' „qep~tM1 ' (7svtti , .. , OeP1t1 ~ , 4epYh '~ '~. 7Ao1~~ . . ~fs ., , «EFyv C~ntie~ ~~t~Bd~s; 8e~tt8iai~srt~ Faah1Y ~ ~~ Nt}~ ttt) ~ if~). iKl I~) ~(~] ~~.1°} t~~}" ' ~ (flH #~lt. ~~ t~'~-. , (~ ` ~ ~ ~ ~ 4,900.00 2,966.39 4,194.68 1,810.54 84.43 108.95 -70.377 1,95370 -2,629.58 2299.35 2,106.31 193.04 11.911 5,000.00 3,021.14 4,300.42 1,867.44 86.42 111.59 -71.895 2,010.48 -2,702.83 2,346.66 2,148.98 197.68 11.871 5,100.00 3,07878 4,426.99 1,926J0 88.40 114.11 -73.512 2,074.94 -2,790.03 2,394.67 2,192.47 20220 11.843 5,200.00 3,13924 4,521.34 1,97827 90.38 115.98 -74.958 2,121.53 -2,853.87 2,442.07 2,235.98 206.08 . 11.850 5,300.00 3,202.44 4,615.45 2,032.10 92.02 117.86 -76.417 2,165.16 -2,917.50 2,490.50 2,280.89 209.61 11.882 5,400.00 3,268.31 4,770.94 2,125.99 93.65 120.95 -78.082 2,234.30 3,020.34 2,538.38 2,324.03 214.35 11.842 5,500.00 3,33676 4,91327 2,217.69 9529 123.40 -79.654 2,294.37 3,111.10 ~ 2,584.68 2,36622 218.46 11.832 5,600.00 3,407.71 5,133.36 2,368.56 96.92 727.01 -81.432 2,383.35 -3,24428 2,62878 2,405.06 22372 11750 5,700.00 3,487.08 5,236.73 2,443.90 98.55 12870 -82J09 2,423.46 -3,303.62 2,670.37 2,443.31 227A7 11760 5,800.00 3,55678 5,415.91 2,578.00 99.79 131.47 -84218 ~ 2,488.31 -3,402.06 2,710.38 2,479.30 231.09 11729 ~ 5,900.00 3,634.71 5,575.38 2,703.13 101.02 133.45 -85.588 2,542.61 3,484.66 2,748.45 2,514.13 234.32 11.729 6,000.00 3,714.77 5,754.66 2,848.59 102.26 135.68 -86.926 2,601.00 3,571.64 2,783.96 2,546.16 237.80 11.707.SF 6,100.00 3,796.89 5,862.67 2,936.54 103.49 137.03 -87.896 2,637.32 3,622.63 2,818.40 2,578.07 240.39 11.724 6,200.00 3,880.94 5,95470 3,011.65 104.73 138.18 -88754 2,668.24 -3,666.02 2,852.91 2,610.12 24279 77J50 6,300.00 3,966.83 6,046.66 3,086.70 105.72 139.33 -89.544 2,698.99 -3,709.36 2,887.56 2,642.62 244.94 11.789 6,400.00 4,054.46 6,166.32 3,184.32 106.70 140.82 -90239 2,739.44 3,765.51 2,921.94 2,674.51 247.43 11.809 6,500.00 4J43.71 6,26523 3,264.95 10770 142.06 -90.841 2,773.64 3,811.47 2,955.63 2,705.97 249.66 11.838 6,600.00 4,234.48 6,352.4T 3,336.02 10870 143.15 -91.395 2,803.71 3,852.03 2,989.37 2,737.61 25175 11.874 6,700.00 4,326.66 6,432.85 3,401.69 10970 144.15 -91.918 2,831.03 3,889.61 3,023.40 2,769.64 25376 11.914 6,800.00 4,420.14 6,532.70 3,48324 110.45 145.40 -92.329 2,864.72 3,936.33 3,057.52 2,801.77 255.75 11.955 6,900.00 4,514.80 6,619.71 3,55427 11120 146.48 -92718 2,89429 -3,976.97 3,091.44 2,833.85 257.59 12.001 7,000.00 4,610.53 6,697.06 3,617.46 111.95 147.45 ~-93.107 2,920.21 -0,01329 3,12570 2,866.39 259.31 12.054 7,100.00 4,707.27 6,80528 3,705.80 11270 148.60 -93.291 2,956.62 -4,064.10 3J59.91 2,898.50 261.41 12.088 7,200.00 4,80472 6,891.03 3,775.69 113.45. 149.88 -93.527 2,985.87 -4,10424 3,193.89 2,930.66 26323 12.133 7,300.00 4,902.94 6,975.15 3,84426 114.15 150.93 -93733 . 3,014.37 -4,143.77 3,228.16 2,963.18 264.98 12.183 . 7,400.00 5,001.76 7,068.85 3,920.64 114.85 152.10 -93.831 3,046.18 -4,187.75 3,262.47 2,995.62 266.85 12226 ~ 7,500.00 5,101.05 7,134.31 3,974.03 115.55 152.92 -94.095 3,06822 -4218.56 3,297.12 3,028.75 268.37 12286 7,600.00 5,20070 7,203.00 4,030.12 116.25 153.77 -94.325 3,09070 -4,25121 3,332.56 3,062.63 269.93 12.346 7,700.00 5,300.57 7,279.06 4,09226 11fi.95 154.73 -94.474 3,11528 -4,287.56 3,368.55 3,096.97 271.58 12.403 7,789.99 5,390.55 7,347.44 4,148.07 117.39 755.58 -112.380 3,137.45 -0,320.26 3,401.19 3,128.32 272.87 12.464 7,800.00 5,400.56 7,353.51 4,153.02 117.45 155.66 -112.327 3,139.40 -4,323.17 3,404.85 3,131.85 273.00 12.472 7,900.00 5,500.56 7,414.14 4,202.48 117.95 156.42 -111.805 3,158.79 -0,352.40 3,442.03 3,167.77 274.25 12.551 8,000.00 5,600.56 7,477.40 4,254.06 118.45 15721 -111272 3,178.64 -4,383.18 3',48025 3,204.71 275.54 12.631 8,100.00 5,700.56 7,546.37 4,310.34 ~ 118.95 158.07 -110705 3,199.85 -4,416.93 3,519.35 3,242.45 276.90 12.710 8,200.00 5,800.56 7,625.15 4,374.69 119.45 159.05 -110.073 3,223.68 -4,455.62 3,559.19 3,280.81 278.38 12.765 8,286.44 5,887.00 7,696.55 4,432.97 119.88 159.95 -109.507 3,245.44 -4,490.66 3,593.97 3,31426 27970 12.849 8,300.00 5,900.56 7,706.96 4,441.47 119.95 160.08 -109A25 3,248.61 -0,495.77 3,599.46 3,319.56 279.90 12.860 8,400.00 6,000.56 7,79223 4,511.12 120.45 161.14 -108765 3,274.43 -4,537.64 3,640.24 3,358.77 261.46 12.933 8,500.00 6,100.56 ~ 7,888.19 4,589.99 120.95 162.33 -108.051 3,30274 -4,584.40 3,68122 3,398.06 283.15 13.001 8,600.00 6,200.56 7,97229 4,659.43 12Y.45 163.38 -107.446 3,327.06 -4,625.13 3,722.40 3,437.70 284.70 13.075 8,700.00 6,300.56 8,064.32 4,735.52 121.95 164.53 -106.801 3,353.50 -4,669.64 3,763.94 3,477.60 286.34 13.145 8,800.00 6,400.56 8,157.03 4,612.71 122.45 165.68 -106.180 3,37922 -4,714.09 3,805.55 3,517.56 267.99 13214 ~ 8,900.00 6,500.56 8,175.00 4,827.69 122.95 165.91 -106.062 3,384.16 -4,722.69 3,848.00 3,55928 288J2 13.328 9,000.00 6,600.56 8,175.00 4,827.69 123.45 165.91 -106.062 3,384.16 -4,722.69 3,892.52 3,603.30 28922 13.459 9,100.00 6,700.56 8,175.00 4,827.69 123.95 165.91 -106.062 3,384.16 -4,722.69 3,939.07 3,649.35 289.72 13.596 9,200.00 6,800.56 8,175.00 4,827.69 124.45 165.91 -106.062 3,364.16 -4,722.69 3,987.58 3,697.36 29022 13740 9,300.00 6,900.56 8,175.00 4,827.69 124.95 165.91 -106.062 3,384.16 -4,722.69 4,037.99 3,74727 29072 13.890 9,400.00 7,000.56 8,175.00 4,827.69 125.45 165.91 -106.062 3,384.16 -4,722.69 4,09023 3,799.01 29122 14.045 9,500.00 7,100.56 8,175.00 4,827.69 125.95 165.91 -106.062 3,384.16 -4,722.69 4,14422 3,852.49 291.72 14206 9,600.00 7,200.56 8,175.00 4,827.69 126.45 165.91 -106.062 3,384.16 -4,722.69 4J99.89 3,907.67 29222 14.372 9,700.00 7,300b6 8,175.00 4,827.69 126.95 765.91 -106.062 3,384.16 -4,722.69 4,257.19 3,964.47 29272 14.543 9,800.00 7,400.56 6,175.00 4,827.69 127.45 ~165.91 -106.062 3,384.16 -0,722.69 4,316.04 4,022.82 29322 14.719 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 13 of 15 COMPASS 2003.16 Build 42 ~ ~ Marathon Oil ~ MARATHON Anticollision Report ~:~tpaY~r= . _ ~ALASKA ~„ M»~I ~~-c~t~lit~~ Re#errt~h~~ ~ ~ _ , ,, ~ ~„ ~Well GO 5 ~ Pr~~~~ ,.~ ~~ NINILCHIK T{fp [t~fet~tic~; ~` ~ ~ ~~~ WELL @ 187.OOft (Original Well Elev) ~t~#eretec~ Sif~s '~ ~ ~GRASSIM OSKOKOFF PAD kND Ref~renEs; ,~; ~ ~"- WELL @ 187.OOft~(Original Well Elev) ~ „ ~Stfe F~w" ~~~: O.OOft ;, r~. ~ 3!Iurth:l'~isrnrfce~' i '~{ ,r :. True ~ R~i~qc131)Iteliz;'~~ '~~ GO 5 9'atvey ~ctilaE~ofe Methdtft + Minimum Curvature Weik~~rr~r: !O.OOft (}yt~u~ errCr~ ~r~;;ak . ~- 2.00 sigma ~ ~ Ref~t^~i~ce IAf~~il~?te'~ GO 5- OH ly,at~b~e ' EDM 2003.16 Single User Db R4~fek-~t1~!s p~S~gh: ' Final INTEQ Plan C~Sat ~.Ete~gFgnce; ' Offset Datum t~E~~i'7~Cgii `~ ~~ ~ GRASSIM OSKOKOFF PAD - GO 4- GO 4- OH - ~ ~ OH Original hole ~, ~ ~~~~~~~ °,s ~~~~'' '~uurv~!~ram;, ;taa-~aw~r~rExu. , F~~~VsN~r~rr: ,~~~k ; , .. ,'fRefsr6ncs, i 6ffast ,~ ,~ , sem~ kWJar;4~s '. , . , nlsta ~y, nsr ; t ~ . . , ' u~ ` !A~§~iVd~i~ vertlcai N~vsesraeH ' uetklsal Reteraoae 9[f~et fiilstislde oFtcetAYetlbo~sCenb~. ~ ~dwaen , @etweetu, .,MNdtn+im: ~ 8e~at n r,ti,z ; ~,~.'~ ~, ;WarMng `,` ~ePth~: QaPtl~+ Q~Pth .;`~< ~spth ' Fo~iface ?tWt~4. '~. aElaN 4AMre91 EtNP~~~: SeqBYa~,bm , FaCt4+' , . t~9 ! (~Y ` ` tft)..; , ~N; (~fil , , „ (~k , : , i°I f~l; , ~ : ~ ~~ f~ . :' ~ ' , ~1.~. ~, , . ,.: (t4' _ ~~ ~ 9,900.00 7,500.56 8,175.00 4,827.69 127.95 165.91 -106.062 3,384.16 -4,722.69 4,376.39 4,082.67 29372 14.900 10,000.00 7,600.56 6,175.00 4,827.69 128.45 165.91 -106.062 3,384.16 -4,722.69 4,438.17 4,143.95 29422 15.064 10,100.00 7,700.56 8,175.00 4,827.69 128.95 165.91 -106.062 3,384.16 -4,722.69 4,501.33 4,206.60 29472 15273 10,200.00 7,800.56 8,175.00 4,827.69 129.45 165.91 -106.062 3,384.16 -4,722.69 4,565.80 4,270.57 29522 15.466 10,300.00 7,900.56 8,175.00 4,827.69 '129.95 165.91 -106.062 3,384.16 -4,722.69 4,631.53 4,335.81 29572 15.662 10,386.44 7,987.00 8,175.00 4,827.69 130.38 165.91 -106.062 3,384.16 -4,722.69 4,689.34 4,393.18 296.16 15.834 CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 14 of 15 COMPASS 2003.16 Build 42 ~ ~ Marathon Oil M MARATNON Anticollision Report Company: Project: ALASKA NINILCHIK Local Co-ardinate Reference: ND Reference: Well GO 5 WELL @ 187.OOft (Original Well Elev) Reference Site: GRASSIM OSKOKOFF PAD MD Reference: WELL @ 187.OOft (Original Well Elev) Site Error: O.OOft North Reference: True Reference Well: GO 5 Survey Calculation Method: Minimum Curvature Well Error: O.OOft Output errors are at 2.00 sigma Reference Wellbore GO 5- OH Database: EDM 2003.16 Single User Db Reference Design: Final INTEQ Plan Offset ND Reference: Offset Datum Reference Depths are relative to WELL @ 187.OOft (Original Well Elev) Coordinates are relative to: GO 5 Offset Depths are relative to Offset Datum Coordinate System is US State Plane 1927 (Exact solution), Alaska Zone 04 Central Meridian is 150° 0' 0.000 W° Grid Convergence at Surface is: -1.291 ° Ladder Plot $ooo 6000 c 0 ~ m m d ~ ~ ~ ~ 4000 U 0 ~ C N U 2000 ~ 0 2000 4000 6000 8000 10000 12000 Measured Depth LEGEND ~r GO 1, GO 1- OH, Original wellbore b'~- GO 3, GO 3- OH, Original wellbore VO -~ GO 2, GO 2- OH, Original wellbore `d~~ GO 4, GO 4- OH, OH Original hole VO ~ ~ _ _ _ _'_ _ _ _ . I I _ _ J _ _ _ _ _ _ I I I ~ ~ ~ ~ _ _ _ _I_ _ _ _ _ I I I I ~ ~ ~ _ _ _ J _ _ _ _ _ I I I I ~ ~ _ _ _ J _ - - I _ _ I I ~ ~ ~ ~ _ _ _ J _ - _ ._ _ I _ I I I _ . _ - _ ~ i ~ ~ - _ _ J _ _ _ - - I I I I ~ i i ~ _ _ _ J _ - - _ - ' I I I ~ i i J - _ - _ -. I - I I ~ i ~ _ - _ J _ _ _ _ _ f I I I ~ i i ~ _ _ _ J _ _ _. _ i I I I ~~ ~~~ ' _. __ , ~ ~ i i _ __J____ _ I _ I i i ~ i __ _ _ _ I I i ~ ~ i i • __ _ _ . I _ _ I 'i ~ -~~ i ~~ ____i_ _ _ _ _ - i ~ ~ ~ ~ i i _ _ _..i__. _ I I i i ~ ~ ~ ~ ~ . _ . _ _ _ J _ _ _ _ _ _I_ _ _ _ I I I ~ ~ ~ , ~ ~ ~ ~ _ _ _ J _ _ _ - _ _ _ J _ _ _ _ I I I I ~ ~ ~ ~ _ _ _ J _ _ _ . I I CC - Min centre to center distance or covergent point, SF - min separation factor, ES - min ellipse separation 12/5/2006 12:06:02PM Page 15 of 15 COMPASS 2003.16 Build 42 ~ ~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. INTEGRATED FLUID~ ENGINEERING PRO~]E~T RL~.14N ~ = _~ IFE • Prepared For: MARATHON OIL COMPANY Well Grassim Oskoloff #5 Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank Revised December 29th, 2006 ~~ ~ ~ Kenai Peninsula, Alaska ~ = '~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will ~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. Enclosed is the revised recommended drilling fluid program for the Grassim Oskoloff #5 Well to be drilled next year. The following is a brief synopsis of the program. Overview: GO #5 is a development well targeting the Tyonek formation at the Grassim Oskoloff field. A GeUGelex spud mud is recommended for the surface interval. Two Flo-Pro fluids will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 4-1/2" liner cemented in place. Surface Interval: A standard fresh water Gel/Gelex spud mud will be used. Initial funnel viscosity should be in the 50 - 75 sec/qt range. Lower funnel viscosity to 45 - 60 sec/qt after gravel has been drilled. Lower fluid loss to 10 - 12 cc's API prior to running surface casing. Intermediate Interval: This interval will be drilled with the same type of Flo-Pro fluid used on the GO #3 well. After drilling out the surface cement, the well will be displaced to the new fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Lubricants should be added on a as-needed basis. Production Interval: This interval will be drilled with the standard non-damaging Flo-Pro fluid used on non-excape wells. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to the new fluid. Fluid loss should be maintained @ 5- 7 cc's API for this interval. Completion: The completion will consist of a 4-1/2" liner cemented in place. This will be tied back to the surface with a 4- 1/2" completion string. Corrosion control will be added to the 6% KCl brine that will remain in the 4-1/2" x 7" annulus prior to tie-back. Tony Tykalsky Project Engineer M-I Drilling Fluids Reference Well: GO #1, GO #2, GO #3 NOTE: This program is provided as a~uide onlv. Well conditions will alwavs dictate fluid properties required. '~ ~ - '~ ,~r~',~~ , "~~* x ~ ~ ~~ ~ ~ ~ ~_ ~ ;. ~'~'-~ara~~~P ~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no M-I/Swaco HSE incidents while providing fluids and solids control services to our customer. Qnr goal fi~r ~Q #5 is to remove cirill s~a~~ids from t~e mue~ system at ~~ast of l~ss than SQ.~9 ~~r p~~nd. This has he~n the ~vera~e for the I~si ~~~ years ~f eentrif~ge ~ ' '' ~ v~~ o~~~atio~~ ~ t)~r ~t~~l ~pr GQ ~~ i~ to dri~1 t6e we~l at ~ flu~d ~c~st a~~ ~~ss t~~n. ~~4.~ p~r foa~~ with a t~tal vQl~r~e of fluid used less than ~2?4 barrels. Use of the MI Swaco centrifuge van for the last five years has provided an estimated '~ savings in dilution and disposal costs to Marathon Oil of over $1,000,000. With continued usage of our equipment, we expect to provide more savings to you during _ future operations. I i~ ~ ~ - '~ Marathon Oil Company = Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Benchmarks and Targets 'Drillin~ Int~rv~ls , ~e~th Benchm~rk 1 Benchmark 2 ~en+~hmark 3 Benchmar~ 4 interv~l ~~~ Fluid cost per foot Volume Usage Solids Removal 0- 2256' <$5.80 ft < 1715 bbls 2256 - 6719' <$26.46 ft < 1662 bbls 6719 - < $34.55 ft < 1697 bbls 10386' Total Project Avg. Max. Targets for <$24.83 < 5274 bbls <$0.29 lb o Spills from Centrifuge Drilling Van Operation Interval ~~ C1L.~` • ! ~'~ Marathon Oil Company - Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Proj ect Summary T I 9-5/8" I 12-1 /4" 7" I 8-1 /2" 4-1/2" I 7" 4-1 /2" ~ 7" ~ Completion ~ 8.55 6 $134,180 $14,576 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost does not include any considerations for whole mud losses. - Cost includes 3% Lubetex concentration for intermediate and production interval. Depth (ft) ND (ft) Mud System Solids Control Mud Weight (ppg) Sum Days Interval Mud Cost 2256' 1900' Gel/Gelex Spud 8.6 - 9.4 7 $18,892 Mud Screens 150/180 mesh Desilter Centrifuge Van 6719' 4334' F1oPro 9.4 - 10.0 7 $123,882 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 10386' 7987' F1oPro 9.6 - 10.2 9 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 10386' 7987' 6% KCl ~~ ~~ %~- ~ • - !'~ Marathon Oil Company = Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Product Usage Summary PR~}Di~CT Surface 121/4" 'f Inter~edi~t~ 8-1J2" Produc~ion ~~~ ~ampleti+~n 3-l.l~~~ T~ta1 Usage °~9 Qf ~otal Cost M-I Bar 0 249 1358 0 1607 4.69 M-I Gel 515 0 0 0 515 1.75 Gelex 21 0 0 0 21 0.13 Soda Ash 9 8 17 0 34 0.24 Caustic Soda 9 17 17 0 43 0.70 Con or 404 0 4 6 0 10 4.89 Sodium Meta Bisulfate 17 17 17 1 52 1.32 Bicarb 9 8 17 0 34 0.23 Con or 303A 0 0 0 1 1 0.18 FloVis 0 116 119 0 235 18.84 Desco CF 23 0 0 0 23 0.42 DualFlo 0 0 102 0 102 3.10 Polypac UL 34 54 0 0 88 5.34 Greencide 25G 0 0 2 0 2 1.27 KCl 0 698 713 84 1495 10.7 Kla ard 0 23 23 0 46 12.39 Safecarb 0 232 339 0 571 4.22 Lubetex 0 40 40 0 80 22.75 Defoam X 0 9 9 0 18 0.65 Asphasol Su reme 0 133 68 0 201 6.58 En ineer Service 7 7 9 6 29 ~~ ~ ~ '~ Marathon Oil Company ~ Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments GO #1 12.25" 945 8.6 14 26 9.9 Spud in, drlg ahead 1479 8.8 20 32 7.4 Short trip, OK 1897 8.9 20 35 7.3 Trip for bit & motor 2468 9.6 22 32 7.6 Drig ahead w/short trip 2500 9.4 18 26 9 Drig to T.D., run casing 8.5" 3488 9.45 8 22 9.8 Drig out, displace mud, drig ahead 4138 9.55 9 27 9.8 Run solids van, add lubetex for siiding 4762 9.7 9 24 10.8 Added DD for clays, running solids van 5248 10.1 13 29 8.8 Running centrifuge van for dry jobs 5617 9.75 10 23 8.1 Drlg ahead, diff stuck, work free, short trip 6290 9.75 10 24 6.9 Condition mud, drlg ahed 6567 9.8 10 21 7.2 Drlg ahead POH for BOPs & BHA 6976 9.55 9 23 8.5 RIH drlg ahed 7358 9.8 8 18 7.3 Drlg ahead, short trip, weight up for runriing shale 7578 10 9 17 7.5 Ream to bottom, drlg ahead 8086 9.6 14 30 6.2 Drlg to casing point, condition hole for logs, add lubetex 8086 10 9 27 6.3 Finish logging, run and cement casing 6.125" 8765 10 9 23 7.3 Drlg out, blend old/new mud drlg ahead 9393 9.9 9 22 6.4 Drlg ahead, POH, lost cone 9393 10.1 10 21 6.4 Fish for bit cone 9404 10.1 10 20 6.5 RIH w/mill, work to td, RIH w/drlg assembly 9718 10 9 28 6.4 Drill ahead 10010 10 9 28 5 CBU, POH 10443 10 12 31 5.6 5' fill on bottom, increased connection gas 11016 10 12 29 5.8 Drig ahead, run van for drill solids 11305 10.05 12 28 6.4 Drlg ahead 11600 10 11 27 6.2 POH for logs, 11600 10 11 27 6.2 Run & cement 4-1/2" liner '~ ~ = '~ • Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. Offset Well Information GO #2 12.25" 866 9 15 33 10 Spud in, drlg to 866, trip for BHA 1163 9.65 21 42 7.2 Drlg ahead, hard to slide 1495 9.6 16 44 6.2 Drlg ahead, added Lubetex to help slide 1695 9.45 13 40 6.9 Drlg ahead, trip fo new BHA, drlg ahead 2240 9.8 13 37 8 Drlg ahead, run centrifuge and desilter for solids 2500 9.75 14 38 8 Drig to csg point, cond hole run casing 8.5" 2935 10.1 8 28 7.8 Drlg out, disp to new mud, drlg ahead 3639 10.05 10 29 7 Solids building up, start centrifuge van, 4355 10.1 11 30 8.4 Drlg ahead; run centrifuge van 4702 10.1 13 31 8.2 Drlg ahead, run centrifuge van 5344 10.15 14 31 8 MBT increasing, dump and dilute 5727 10.2 13 26 8.2 MBT increasing, dump and dilute 6247 10.25 14 24 7.5 Rig repair, circulate & cond mud 6507 10.1 14 31 8.9 POH test BOPE 6667 10.35 17 33 8 RIH, mad pass log well, 7030 10.2 16 28 7.3 Drlg ahead 7345 10.2 17 23 7 Short trip, backream as needed 7788 10.3 16 28 7.5 Stuck @ 7113', coal, backream, add lubetex to 2% 8118 10.35 18 29 9 Increase lubetex concentration to 3°/o 8422 10.35 18 28 8.8 Centrifuge mud for fines (MBT) 8530 10.3 18 30 8.6 Sweep hole, POH for logs 7" 8644 9.5 7 20 5.5 Drlg out, disp to new mud, drlg ahead 9402 9.6 8 23 4.5 Drlg ahead 10018 9.95 10 26 5.2 Increase mud weight to 9.9 PPG 10835 9.95 12 28 5.8 Dump & dilute to reduce drill solids 11338 10.15 11 23 5.8 Inc mud weight for high trip tgas 11995 10.25 10 27 6.6 Losing mud to hole after weight up 12026 10.4 11 26 6.4 Swabbing, increase mud weight, pump (~OH 12026 10.4 8 24 6.5 Logs hit bridge at 8640' 12026 10.45 8 24 6 Difficulty logging, engr released 11l4 1~ ~ ~ - '~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 12 _ Location: Kenai, Alaska. Offset Well Information GO #3 12.25" 1078 8.8 12 27 15 Spud in 2396 9.3 14 20 11.8 Drill ahead, short trip, OK 2508 9.65 15 22 8.2 Drlg to casing point 2508 9.6 15 21 8.8 Run and cement surface casing. OK 8.5" 2528 9.4 17 34 4.8 Drlg casing shoe, displace to new mud, drig ahead 3858 9.55 15 29 5.6 Drill ahead with autotrack 4891 9.7 14 23 6.2 Drlg to 4891, short trip, tight in spots, drig ahead 6414 9.5 22 27 4.6 Drlg ahead, pump sweeps every 300' 7332 9.6 19 32 5 Drlg to casing poiint, conditon mud, POH 7332 9.65 17 23 4.1 Log interval, run & cement casing, all OK 7~~ 8190 9.6 10 24 4 Drlg out, displace to new mud, drlg ahead 9598 9.6 10 21 4.2 Drlg ahead 9794 9.75 10 26 5.2 Drlg to core point, short trip, OK, POH 9814 9.8 10 25 5.6 RIH, Core 50 9814' 9842 9.75 12 24 4.8 Recover core, RIH continue coring 9875 9.75 11 22 5.4 Finish coring, log cored section 10662 9.8 11 24 4.4 repair top drive, drill ahead 11529 9.8 12 23 5.2 Drlg ahead 12212 10.3 13 26 5.8 Dril to core point, treat lost circulation, ~~eight up to 10 3 PPG 12212 10.75 12 19 6.2 Hole appears to be breathing 12250 10.7 13 22 6.4 Core well 12331 10.7 12 23 5 Finish coring, RIH ream core run, drlg ahead 12967 10.7 13 19 4.2 Drlg ahead 13233 10.7 12 19 4.6 Drlg ahead, POH for MWD 13358 10.5 10 21 4.8 RIH, ream tight spots, cirs out 1800 units gas, drlg ahead\ 13436 10.2 11 20 4.8 Drlg ahead, lost returns, pump ICM pills, lower mud weight 13771 10 10 20 5 Drlg ahead, lost 510 bbls, slow pumps, reduce lossed 13771 10.1 11 19 5.2 POH, RIH w/log tools on DP, 13771 10.25 11 20 5.4 Circ out gas, log well 13371 10.2 9 13 4.2 Run liner, cement with lost returns, 13371 9.8 9 11 5.2 Squeeze liner top, displace well to KCL, run completion strring 1~ ~ ~ - '~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION - The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the formation - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7- 9 cc's range. In the production interval the API fluid will be maintained in the 5- 7 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . It is particularly important to maintain a low hardness (<200 ppm Ca) for effective use of DualFlo, therefare cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme UL after consultation with town. ~ LSRV - When drilling with a F1oPro fluid, the low shear rate rheology should be maintained around 30,000 cps. In addition to adequate additions of F1oVis Plus, this will also require keeping reactive drill solids to a mmimum in order to reduce or eliminate false and unwanted high LSRV. ~ DRILL SOLIDS - MBT - The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS - Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Conqor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. ~ SOLIDS VAN USAGE - The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP - All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~~ • ~ - ,~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary -12-1/4" hole o - Z~sc~ Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL / Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./100ftz) (mU30min) (%) 0- 2256' 8.6 - 9.4 50 - 75 25 - 35 NC - 10/12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 75 sec.qt funnel viscosity. - Lower funnel viscosity to +/- 60 after any gravel has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add 2- 5 PPB of M-I Seal Fine to mud system if seepage losses becomes a problem.. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1715 barrels. - Estimated haul off volume - 2630 barrels. ~~ ~..1.~' ~ ~ ~:'~ Marathon Oil Company - Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary -12-1/4" hole Virtual Hydrualics Snapshot ~~ T.D. M~ swAy~,~m OO 1985-2006kM-~ L.L.C. .~.....,: . ~ . i.i.c. VIRTUAL NYDRAULICS' SnapShot' Depih Geometry Angle Density (k) MUITVD Csg OD/ID (°) (Iblgal) un iiro a as 90 9 z~ _ i8.OC0 BC 15_000 aoo eoo I z,ao ~ izsso szoo ~ess System Data Flow Rate 645 gal/min Pene6ation Rate 100 ft/hr Rotary Speed 80 rpm WeightonBit 6 10001b BitNoales 18-18-18-16-0 0-0-0-0-0 Pressure Losses Modifed Power Law Drill SMng 684 psi Bit 405 psi Bit On/Off 0 psi Annulus 22 psi Surtace Equip 34 psi U-Tube ERect 16 psi TotalSystem 1161 psi ESD ECD +Cut Csg Shce 9.37 9.54 9.71 TD 9.37 9.60 9.77 - Hole cleaning deteriarates as angle build to +/- 70 degrees. Recommend a high viscosity sweep at interval T.D. prior to POH for casing run. MD: 2140 ft Operator. Marethon Oil Company NO: 1855 k Well Name: Grassim Oskokoff #5 BilSize: 72.25 ~n Location: Ke~zi Peninsula Date: 12i282006 Country: USA PV (cP) Tempara[ure Va Hole Clean Pressure Distribution VP, LSVP (IbI100k') (°F) (klmin) Index (°/) o i so ea ~oo a eo isa vc c F P ~~ ~ DS = 67.6 ~ - - ~ '~ P ~ ~ ' I Drilling Fluid ~ Water-Based Mud ~ ~' Mutl Weight 9.3 Ib/gal ~ Test Temp 120 °F ~~ ~ . ~ ~'~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 _ Locat~on: Kenai, Alaska. Interval Summary -12-1/4" hole Virtual Hydrualics Hole Cleaning Index M~ SWAC ~01995-2005 M-I LLC ~- ~ ' . MD: 2140 R Operetor. Marathon Oil Company '~- MaM1OIM-ILLC ~ TVD: 1855 R Well Name: Grassim Oskokoff #5 VIRTUAL NYDRAULICS' VRDH' e~~ S;=e: ,Z.ZS ;~ Location: Kenai Peninsula _ Date: 12/28/2006 Country: USA Hole Cleaning Marathon Oil Company Grassim Oskokoff #5 1.00 :~: _ - '~ - ROP 50 ft~hr ~ .~ . ~ ~ ; - ROP 7ti fVhr ' „,~, '` '~.. - ROP 100 ft/hr I Poor Hole Cleaning . - ROP 125 fUhr _ _ - ROP150ftlhr ~'-°.- - _.. 0.75 , - ROP 175 ft/hr ~ _.___ ' ' ~ - R~P 2nn fl:hi , ___ ., . X . . . .. .. ....... A W ~ ~ ~ ~ . . . .._ _ . . . . . . . •~ Q.S~ W U _ ~ Good Hole Cleaning O ..... ., _ __ _ _ _. __ _ 2 , ~ , _ _ . _. ozs Very Good Hole Cleaning 0 540 560 580 600 620 640 660 Flow Rate (gal/min) - Avoid hole cleaning issues by maintaining high flow rate (+/- 650 GPM), and ROP < 125 ft/hr ~~ ~ ~ ~ - '~ Marathon Oil Company = Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Ke,nai, Alaska. Interval Summary - 8-1/2" hole 2256 - 6719' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac UL / KCl / SafeCarb 10 & 40, Asphasol Supreme Lubetex / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Kla ard Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 200 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nt~~val ]]r~~Iin~ Flu~d ~roper~es Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (mU30min) (°/a) 2256 - 6719' 9.4 - 10.0 8- 12 20 - 30,000 7- 9 +/- 9.5 +/- 7.5 % - Use one rig pit to drill out surface casing. In other rig pits, build new F1oPro fluid using the enclosed formula. ~ - After drilling out surface casing, displace hole to FloPro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Conqor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval - 1662 barrels. - Estimated haul off volume - 2505 barrels. - Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ CZLr' ~ ~ '~ Marathon Oil Company ~ Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Fluid Formula - 8-1/2" hole ~~ ~~~~ MUDCALC 4.5 - Water-Based Mud Calculation ~~ 8-1/2" Interval from 2256 - 6719' ~nn~~+ D~scri` tian GO #5 Intermediate Interval Mud U16ei ht ' 9.4 Preh drated ~el i No Wei ht Mater~a[ Goiie ~ MI Bar F+rekr tira#ed Cel Conc. Wei ht 1~laterj~l SG ~ ~~ 4.2 KC( ~hf~rid~ Wei ht Material Price KGl Wt°fo 6 - 1 bbl 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 4.00 4.00 0.010 3.33 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 30.24 30.24 0.021 7.20 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If tor ue becomes a roblem add u to 5% of the followin : 13 Lubetex 14.00 14.00 0.041 14.43 Lubricitv 394.8 394.8 9.400 29600 1662 barre 1~ ~~ ~ ~ ~'~ Marathon Oil Company - Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Virtual Hydrualics Snapshot ~~ T.D. MI ~7YYACO OO 1995-2005 M-I L.L.C. ~~ 'MaMMM-ILL.C VIRTUAL NYDRAULICS" SnapShot' Depth Geometry Angle Density (ft) MD/ND Csg OD/ID (°) (Iblgal) _ MD: 6719 /t ND:4344 k Bit Size: 8.5 in Date: 1 212 712 0 06 Temperature Va (°F) (fUmin) Operator: Marathon Oil Company Well Name: Grassim OskokoH It5 Location: Kenai Peninsula Country: USA Hole Clean Prassure Dlstribution Index ( % ) vG G F P Bit = 36.6 Ann = 15.5 DS = 4~.8 Drilling Fluid FLOPRO NT -- ~, Mud Weight 9.5 Iblgal TestTemp 120 °F _ System Data Flow Rate 581 gallmin 0 ~ Penetration Rate BS R/hr Rotary Speed 70 rpm ~ Weight on Bit 6 1000 Ib ~ Bit Noules 15-15-15-1545 0•0-0-0-0 i Pressure Losses ~. Modified Power Law Drill String 522 psi MWD 225 psi Motor 225 psi Bit 400 psi Bit OnIOH 0 psi Annulus 170 psi Surtace Equip 34 psi U-Tube Effect 18 psi Total System 1593 psi - ESD ECD +Cut Csg Shoe 9.59 10.21 10.29 ~ TD 9.59 1035 10.42 I - .. VROH ~ Venlon ].0 O~BBOVd% ipp~~~ File~GOtS.MOB - Hole cleaning should not be an issue while rotating drillstring. If extended periods of sliding is required, then added circulation and high viscosity sweeps may be needed. ~~ ~ PV (cP) YP, LSYP (IbN00ft') 2 ~ ~ ~'~ Marathon Oil Company - Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Virtual Hydrualics Hole Cleaning Index , M~ sWACO 01995-2005 M-I L.L.C. MD: 6719 ft Operator: Marathon Oil Company . •Ma~`°`M-~~.~.c. , ND:4344 ft We1lName: GrassimOskokoffit5 VIRTUAL NYDRAULICS' VRDH' B~~ S,=e: 8 5 ~~ Location: Kenai Peninsula _ _ Date: 7Z28l2006 Country: USA Hole Cleaning Marathon Oil Company Grassim Oskokoff #5 1.00 - ROP 50 fl!h~ ~ ~ ~ ~ ~ _._ --~__ _,-- -=-----~ - ROP 75 ft/hr -~--. . _ ~ - ROP 100 ft/hr ~I , I I ' ~ Poor Hole Cleaning - ROpt2=,rt.~„ ------------ ~ . . . . _ . - ROP 15~) tC~~.i ~~ . ~ 0.75 i _~~~""--"`_---L- x I , ----,--__-~ d '~ C ~ C ~ 0.50 d U a~ O 2 Fair Hole ~.._..._ ----_ _ _.__ Good Hole Cleaning ~ ~ I , Very Good Hole Cleaning _} .... i ~ 0 '- __,_- __ - -- -- _ _ 480 500 520 540 560 580 600 Flow Rate (gal/min) - Maintain flow rates above 550 GPM along with ROP < 125 ft/hr. ~~ ~ 1~ ~ ~ - '~ Marathon Oil Company = Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary - 7" hole ~~~~ - l~~s~~ Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / Greencide 25G / SafeCarb 10/ MI Bar / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / la ard / Lubetex / As hasol Su reme Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 200 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions, stuck pipe. nt~rval Drilling F~~id P~op~rti~s Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (mU30min) (%) 6719 - 10386' 9.6 - 10.2 10 - 14 20 - 30,000 5- 7 +/- 9.5 +/- 5% - Use one rig pit for drilling out intermediate casing. In other rig pits, build new F~o-Pro fluid using the enclosed formula. - NOTE: Initial formula does not call for Lubricant. However lubricant additions should be monitored for there effectiveness with the enclosed data sheet. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Periodic additions of Greencide 25G will be needed to control bacteria build-up. - Estimated volume usage for interval - 1697 barrels. - Estimated haul off volume - 2327 barrels. - Condition mud prior to running 4-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ CJ_Lr' ~ ~ _ '~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 12 _ Location: Kenai, Alaska. Fluid Formula - 7" hole ~~ ~~~~~+'~~~ MUDCALC 4.5 - Water-Based Mud Calculation M-I L.L.C. 7" Interval from 6719 - 10386' ~nn~~+ DesCri fion GO #5 Production Interval Mud UUei ht 9.4 reh 'drated Gel No Wei hf Material Code MI Bar drated Gel C~nc. ! Wei ht Ma#eria{ 5G 4.2 KCI Chlc~ride Wei ht Material Price KCC Wt°1Q` 6 ut - 1 bbl 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.50 1.50 0.040 1.00 Viscosit 4 DuaiFlo 5.00 5.00 0.010 3.33 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 4.00 4.00 0.010 3.33 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 51.42 51.42 0.035 12.24 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If tor ue becomes a roblem add u to 5% of the followin : 13 Lubetex 14.00 14.00 0.041 14.43 Lubricitv 411.6 411.6 9.800 29600 1697 '~ ~~j I I!r ij.~.r • ~ ~:'~ Marathon Oil Company - Well Naine: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary - 7" hole Virtual Hydrualics Snapshot ~~ T.D. Mi SWACC~ N,~ ~` 1995-2005 M-I LLC. 'MaA d M~I L.L.C. VIRTUAL HYDRAULICS" SnapShoY Depth Geometry Angle Density (ft) MDIND Csg ODIID (°) (Iblgal) a PV (cP) YP, LSYP (Ib1100ft') 2 40 ~ MD: 10386 ft Operetor. Marathon Oil Company ND: 7987 ft Well Name: Grassim Oskokoff #5 Bit Size: 7 m Location: Kenai Peninsula Date: 72!2712006 Country: USA amperature Va Hole Clean Pressu~e DistribuNon (°F) (fGmin) Index ( % ) 8a 120 160 i0 vG G F P Bit ~ DS = 45 9 '~ ~ I. ~. .....__ ~ II~ i Drilling Fluid FLOPRO NT ; Mud Weight 9.6 Iblgal TestTemp 120 °F System Data ~ Flow Rate 275 gallmin ~I~ Penetration Rate 85 ft/hr ~ RoWry Speed 70 rpm ~ ~ Weight on Bit 6 1000 16 I Bit Noules 11-17-11-11-11 11•0•0-0-0 Pressure Losses Modified Power Law '. ~ Drill String 609 psi ' I MWD 225 psi ~. Motor 225 psi ~. Bit 222 psi . ~ ~. Bit On/Off 0 psi ~ Annulus 494 psi '~, SurTace Equip 8 psi , j U-Tube Effect 44 psi ~~ Total System 1828 psi ESD ECD +Cut - Csg Shoe 9.90 11.59 11.69 ~' ~ TD 9.90 11.09 11.20 ~ Annulus vaoH -ve..ioo a.a ~ pnIISIn~B I File-GOASS.MDB - Tangent section of T' casing may develop cuttings beds. Consider low/high viscosity sweeps while bit is inside 7" casing only (not in open hole). _" l IFE Q.I.r ~: I - ECD+CUt I • ~ ~:'~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 _ Location: Kenai, Alaska. Interval Summary - 7" hole Virtual Hydrualics Hole Cleaning Index MI ~7YrMVO n1995-2005 M-I LLC. 'MaM N M-I L.L.C VIRTUAL HYDRAULICS' VR~H` x m ~ MD: 70386 R Operator: Marathon Oil Company TVD: 7987 R Well Name: Grassim OskokoN#5 Bit Size: 7 in location: Kenai Peninsula Date: 12l2812006 Country: USA Hole Cleaning _ ~feic.dpLCleaning ~ C ~ 0.50 d V -~-- ~ - _.. _._._ _ ------- - ~ Good Hole Cleaning O 2 Very Good Hole Cleaning 0 200 220 240 260 280 300 Flow Rate (gal/min) - Flow rates of 250 - 275 GPM are adequate to clean this interval. NOTE: Hi~her flow rates mav increase ECD's to a level to hi~h for the formation. ~~ C~ ~ ~ Marathon Oil Company _'`'I;'~ Well Name: Grassim Oskoloff #5 Ver 1.2 - Location: Kenai, Alaska. Interval Summary - Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Grassim Oskoloff #5 Volumes: Tubing Volume a-~l2" Tubing 104.06 barrels AnnUlaY Volume Casing x Tubing 124.97 barrels 3.992 x 6719 ft Total Annular Volume 124.97 Tubing Volume ~oa.os Packer @ 6639 ft MD Total Hole Volume 229.02 6.276 @ 6719 ft MD 4.50 @ 103586 ft MD Treatment Procedures. 1. After the 4-1/2" tubing is run and the drilling fluid is conditioned, build at least 230 barrels of 6% KCL brine. 2. Displace mud out of well with the 6% KCL brine. Add 1 drum of Conqor 303A and 2 sack of Sodium Meta Bisulfate to the first 125 barrels of brine pumped., 3. Displace the 135 barrels of treated fluid with an additional 105 barrels of brine prior to setting the tubing hanger. 4. This procedure will place corrosion control in the 4-1/2" x 7" annulus. 1~ ~ ~ ~ ~ - '~ Marathon Oil Company = Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures far handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4, When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. ~~ CJ..1~~~ ~ ~ ~'~ Marathon Oil Company - Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit r~e~~tivi PPE M-I BAR Weighting Agent *~ Q ~ E M-I GEL Viscosity control *~ 1 (} E GELEX Bentonite Extender ~ ~ ~ E FLOVIS Viscosifier ~ 1 E DUAL-FLO Modified Starch ~ ~ `' ~} ~" E POLYPAC Fluid Loss Reducer *~ 1 4' E HEC ~oss Circulation Material ~ ~ ~ E Safe-Carb 10,40,250 Bridging and weighting agent *~ Q ~ E Nut Plug Loss Circulation Material *~ 1 ~, E M-I Seal F, M, C Loss circulation Material *~ 1 E Mix II F,M,C Loss circulation Material *~ 1 E DESCO CF Dispersant ~ 1 E SALT (Solar) Densifier 1 0 E POTASSIUM CHLORIDE Shale Inhibitor ~ 0 E CAUSTIC SODA Alkalinity control 3 0 X BORAX Inorganic Borate ~ 0 E SAPP Sodium Pyrophosphate *1 0 E SODA ASH Alkalinity control ~ 1 E SODIUM BICARBONATE Alkalinity control 1 0 !~ E CITRIC ACID pH Adjuster 1 0 0 E BIOBAN BP-PLUS Biocide *2 0 0 J GREEN CIDE 25G - Biocide 3 0 0, ~~ .1 DEFOAM X- Defoamer 1 1 .1 GSEAL Sized graphite LCM ~ 1 _ - E SteelLube Lubricant 1 1 ~ .1 LUBE TEX Lubricant 1 1 ~ .1 D-D CWT Detergent 2 1 ~ J Concor 404 Corrosion Inhibitor 1 1 (} .1 SAFEKLEEN Drilling fluid additive 1 1 .1 Asphasol Supreme Shale Inhibitor 1 1 .1 Sodium Meta Bisulfate Oxygen Scavenger 1 1 J ~~ ~ ~ - '~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS ~ ~ ~ \~' ~ c- HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses . B - Safety Glasses, Gloves C- Safety Glasses, Gloves, Synthetic Apron D- Face Shield, Gloves, Synthetic Apron E- Safety Glasses, Gloves, Dust Respirator F- Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G- Safety Glasses, Gloves, Vapor Respirator H- Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I- Safety Glasses, Gloves, Dust and Vapor Respirator J- Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K- Air Line Hood or Mask, Gloves, Full Suit, Boots X- Consult your supervisor for special handling directions ~~ ~ ~ - '~ Marathon Oil Company Well Name: Grassim Oskoloff #5 Ver 1.2 Location: Kenai, Alaska. C ontacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathou Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-SOll 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field gratefulmen@hotmail.com 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) John Nicholson / Dan Drilling Foremen 907 283-1312 Bird Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Fie1d Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ . Alaska Department of Natural Resources Land Administration System . • • Page 1 of 8 ;,~ Alaska Mapper Land RecardslStatus Plats Recorder's Search State Cabins ~~~~~ ~~~'~r~+~~ Alaska DNR Case Abstract File Type: ADL File Number: 3s9737 ; ~ I Printable Case File Abstract See Township, Range, Section and Acreage? ~ Yes ~ No t_AS_Me_nu_ ~ Case Summarv ~ Case Detail ~ Land Abstract File: ADL 389737 ~.~~~ As of O1/04/2007 Customer: 000159642 MARATHON OIL COMPANY ATTN: CONTRACT DEPARTMENT P.O. BOX 68 HOUSTON TX 7700 10068 Case Type: 784 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 35 ISS/APPRV/ACTV AUTH Status Date: 11/21/2002 Total Acres: 3095.550 Date Initiated: 10/31/2001 Offce ofPrimary Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 10/07/2005 Case Subtype: CI COOK INLET Last Transaction: CCN CUSTOMER CHANGED NAME Meridian: S Township: OO1N Range: 012W Section: 06 Sectio~ Acres: 31 Search Plats Meridian: S Township: OO1N Range: 012W Section: 07 Section Acres: 9 M~ridian: S Township: OO1N Range: 013W Section: Ol Section Acres: 400 Search Plats Meridian: S Township: OO1N Range: 013W Section: 02 Section Acres: 320 Meridian: S Township: OO1N Range: 013W Section: 06 Section Acres: 1 Meridian: S Township: OO1N Range: 013W Section: 10 Section Acres: 160 Meridian: S Township: OO1N Range: 013W Section: 11 Section Acres: 640 Meridian: S Township: OO1N Range: 013W Section: 12 Section Acres: 301 Meridian: S Township: OOlN Range: 013W Section: 13 Section Acres: 35 Meridian: S Township: OOlN Range: 013W Section: 14 Section Acres: 558 Meridian: S Township: OOlN Range: 013W Section: 15 Section Acres: 640 Case Actions 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000002176 BURGLIN, BRIAN WORKING INTEREST % 3 http://www.dnr.state.ak.us/las/Case_Abstract.cfm?FileType=ADL&FileNumber=389737&... 1 /4/2007 , Alaska Department of Natural Resources Land Administration System Page 2 of 8 . ~ ~ ROYALTY INTEREST % 2.625000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000005467 STATE OF ALASKA ROYALTY INTEREST % 12.500000 10-31-Z001 INITIAL OWNER , SEGMENT CODE 1 CID NUMBER 000131220 BURGLIN, CLIFFORD ~ WORKING INTEREST % 44 ROYALTY INTEREST % 38.500000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NLTMBER 000106539 CHEVRON U.S.A. INC WORKING INTEREST % 30 ROYALTY INTEREST % 26.250000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000002354 GUSTAFSON, MARY WORKING INTEREST % 6 ROYALTY INTEREST % 5.250000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000003753 SEXTON, MICHAEL R WORKING INTEREST % 5 ROYALTY INTEREST % 4.375000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000131216 BURGLIN, BRUCE WORKING INTEREST % 3 ROYALTY INTEREST % 2.625000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000131215 RIMA, BARBARA C WORKiNG INTEREST % 3 ROYALTY INTEREST % 2.625000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 http://www.dnr.state.ak.us/las/Case Abstract.cfm?FileType=ADL&FileNumber=389737&... 1/4/2007 . Alaska Department of Natural Resources Land Administration System Page 3 of 8 ~ • ~ CID NUMBER 000001958 BURGLIN, JOSEPH WORKING INTEREST % 3 ROYALTY INTEREST % 2.625000 10-31-2001 INITIAL OWNER SEGMENT CODE 1 CID NUMBER 000001951 BURGLIN, DAVID WORKING INTEREST % 3 ROYALTY INTEREST % 2.625000 10-31-2001 TRACT DEFINED SALE DATE 12-10-1959 STATUS (11) 21 ACTNE BID TYPE 1 FIXED ROYALTY RATE SALE NUMBER 1 TRACT NUMBER 5-13-13-2 FORM NUMBER 3 DL-1 CONDITIONAL Y/N N PRIMARY TERM 5 LEASE'SEGREGATED FROMADL 590, COMMITTED TO UNIT OS-O1-2002 NOTIFICATION LESSEE CHANGED NEW NL (20) 20 NOTIFICATION LESSEE OLD NL (20) 20 NOTIFTCATION LESSEE NEW NOTIF LESSEE CID# 159642 MARATHON OIL COMPANY OLD NOTIF LESSEE CID# 106539 CHEVRON U.S.A. INC OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000002176 BURGLIN, BRIAN ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 3 ROYALTY INTER % ASSIGNED 2.625000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000131220 BURGLIN, CLIFFORD ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 44 ROYALTY INTER % ASSIGNED 38.500000 http://www. dnr. state. ak.us/las/Case_Abstract. cfm?FileType=ADL&FileNumbe~3 89737&... 1/4/2007 , Alaska Department of Natural Resources Land Administration System Page 4 of 8 ~ • . OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000131216 BURGLIN, BRUCE ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 3 ROYALTY INTER % ASSIGNED 2.625000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000001958 BURGLIN, JOSEPH ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 3 ROYALTY INTER % ASSIGNED 2.625000 OS-03-2002 ASSIGNMENT APPROVED EFFECTNE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000001951 BURGLIN, DAVID ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 3 ROYALTY INTER % ASSIGNED 2.625000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000002354 GUSTAFSON, MARY ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 6 ROYALTY INTER % ASSIGNED 5.250000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000003753 SEXTON, MICHAEL R ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 5 ROYALTY INTER % ASSIGNED 4.375000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 http://www.dnr.state.ak.us/Ias/Case Abstract.cfin?FileType=ADL&FileNumber=389737&... 1/4/2007 I . Alaska Department of Natural Resources Land Administration System Page 5 of 8 ~~ i i SEGMENT CODE 1 ASSIGNOR'S CID 000131215 RIMA, BARBARA C ASSIGNEE'S CID 000106539 CHEVRON U.S.A. INC WORKING INTER % ASSIGNED 3 ROYALTY INTER % ASSIGNED 2.625000 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-O1-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000106539 CHEVRON U.S.A. INC ASSIGNEE'S CID 000159642 MARATHON OIL COMPANY WORKING INTER % ASSIGNED 100 ROYALTY INTER % ASSIGNED 81 OS-03-2002 ASSIGNMENT APPROVED EFFECTIVE DATE OS-01-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000106539 CHEVRON U.S.A. INC ASSIGNEE'S CID 000039607 OVERRIDING ROYALTY ROYALTY INTER % ASSIGNED 6.500000 AN INITIAL SEPARATION FROM THE WORKING INTEREST HAS BEENAPPROVED. IN- DIVIDUAL OVERRIDING ROYALTYINTERESTSARE NO LONGER TRACKED SEPARATELY OS-31-2002 COMMENTS FIXED TRANSACTIONS THAT APPEARED TO BE DUPLICATES BECAUSE OF IDENTICAL DATE AND TIME, BY CHANGING THE TIME ON THE TRANSACTIONS OS-31-2002 COMMENTS FIXED TRANSACTIONS THAT APPEARED TO BE D UPLICATES BECA USE OF IDENTICAL DATE AND TIME, BY CHANGING THE TIME ON THE TRANSACTIONS 07-23-2002 ASSIGNMENT APPROVED EFFECTIVE DATE 08-01-2002 SEGMENT CODE 1 ASSIGNOR'S CID 000159642 MARATHON OIL COMPANY ASSIGNEE'S CID 000106901 UNION OIL COMPANY OF WORKING INTER % ASSIGNED 40 ROYALTY INTER % ASSIGNED 35 11-21-2002 ISSUE/APPROVE/ACTIVE AUTHORIZATION R&B http://www.dnr.state.ak.us/las/Case Abstract.cfin?FileType=ADL&FileNumber=389737&... 1/4/2007 , Alaska Department of Natural Resources Land Administration System Page 6 of 8 ~ i ~- EFFECTIVE DATE 01-2?-1960 EXPIRATN DATE O 1-26-1965 STATUS 35 35 ISS/APPRV/ACTV AUTH ENTIRE LEASE COMMITTED TO NINILCHIK UNIT 11-21-2002 CASE BY SEGREGATION EFFECTIVE DATE 10-31-2001 ANNIVERS DATE 01-27-1960 EXPIRAT DATE 01-26-1965 STATUS CODE 21 AWRD/NON-OBJ/INTERIM OLD FILE TYPE ADL ALASKA DIV OF LANDS OLD FILE NUMBER 590 CREATED BY SEGREGATION FROM 590, (IN FALLS CREEK UNIT). THIS LEASE IS COMMITTED IN ENTIRETY TO NINILCHIK UNIT. 12-31-2002 STATUS CODE STANDARDIZED STATUS CODE 35 ISS/APPRV/ACTV AUTH * * * * * STtITiIS CODE STANDARDIZATION * * * * * STATZ~S CODE CHANGED BYBATCH UPDATE 11-11-2003 COMMENTS LEASE COMMITTED INENTIRETY TO NINILCHIK UNIT, PERMANENTLY AMENDED, MINIMUMROYALTY CLAUSE DELETED, RENTAL RATE AT $3.00/ACRE. 11-12-2003 PARTICIPATING AREA ESTABLISHED EFFECTIVE DATE 07-01-2003 UNIT CODE 1 NK NINILCHIK UNIT TRACT 3 TOTAL LEASE ACRES 3095.550000 LTNITIZED ACRES 1 3095.550000 PARTICIPATING ACRES 1 951.850000 LEASE INCORPORATED IN PART INTO GOPA ~ FALLS CRK 10-07-2005 CUSTOMER CHANGED NAME NEW NAME: MARATHON OIL COMPANY OLD NAME: MARATHON OIL COMPANY Legal Description 10-31-2001 *** CASE CREATED BY SEGREGATION FROM ADL 590 **** * * * * * UNITIZED AND LEASE LEGAL DESCRIPTION* * ~ * http://www.dnr.state.ak.us/las/Case_Abstract.cfin?FileType=ADL&FileNumber=389737&0.0 1/4/2007 ^ Alaska Deparhnent of Natural Resources Land Administration System Page 7 of 8 ~ ~ NINILCHIK UNIT UMT TRACT 3 T. IN, R. 13W, SM SEC. 1: NI/2N1/2, SI/2NW1/4, SWI/4NE1/4, Nl/2SW1/4, SWI/4SW1/4 SEC. 2: EI/2 SEC. 10: SEl /4 SEC. 11: ALL SEC. 12: FRACT., NWI /4NW1 /4, SI /2NW1 /4, SI /2NE1 /4, SI /2, EXCEPT THAT PORTION LYING ABOVE THE LINE OF MEAN HIGH TIDE. SEC. 13: FRACT., ALL, EXCEPT THAT PORTIONLYING ABOVE THE LINE OF MEAN HIGH TIDE. SEC. 14: FRAC'T., ALL, EXCEPT THAT PORTION LYING ABOVE THE LINE OF MEAN HIGH TIDE. SEC. I5: FRACT., ALL T. IN, R. 12W, SM SEC. 6: FRACT., EI /2, EXCEPT THAT PORTION LYING ABOVE THE LINE OF MEAN HIGH TIDE. SEC. 7: FRACT., ALL, EXCEPT THAT PORTIONLYING ABOVE THE LINE OF MEAN HIGH TIDE. CONTAINING 3095. SS ACRES, MORE OF LESS. 07/Ol /2003 * * * * * PARTICIPATING AREA ESTABLISHED * * * * * * * * * * * * * * LEASE INCORPORATED IN PART INTO GRASSIM OSKOLKOFF PA NINILCHIK UNIT TRACT 3(PARTIAL) GRASSIM OSKOLKOFF PARTICIPATING (GOPA) T. IN, R. 13W, SM http://www.dnr.state.ak.us/las/Case Abstract.cfin?FileType=ADL&FileNumber=389737&... 1/4/2007 I~ ~ Alaska Department of Natural Resources Land Administration System Page 8 of 8 ~ ~ ~ SEC. 14: UNSURVEYED, S/2NW/4, NW/4SW/4, 120ACRES; SEC. 1 S: PROTRACTED, ALL EXCLUDING THE W/2NW/4, 560 ACRES; CONTAINING 680. 00 ACRES, MORE OR LESS. 07/01 /2003 * * * * * PARTICIPATING AREA ESTABLISHED * * * * * * * * * * * * * * LEASE INCORPORATED IN PART INTO FALLS CREEK PA NINILCHIK UNIT TRACT 3 (PARTIAL) FALLS CREEK PARTICIPATING AREA T. 1N, R. 13W, SM SEC. 1: PROTRACTED, NE/4SW/4, SW/4SW/4, CONTAINING 80 ACRES; SEC. 11: PROTRACTED, E/2NE/4, CONTAINING 80 ACRES; SEC. 12: UNSURVEYED, W/2NW/4, CONTAINING 80ACRES; T. 1N, R. 12W, SM SEC. 6: UNSURVEYED, FRACTIONAL, THAT PART OF THE W/2NE/4 LYING BELOW THE LINE OF MEAN HIGH TIDE, 31. 85 ACRES. CONTAINING 271.85 ACRES, MORE OR LESS. End af Case Abstract Last updated on 01/04/2007. Not sure who to contact? Have a question about DNR? Visit the Pu_blic Tnformatica~~t_ Center. Report technical problems with this page to the 1rUebmaster. Site optimized for Netscape 7, IE 6 or above. This site also requires that all CQdKIES must be accepted. Stete of Alaska Natural_Resaurces LAS Hame Copyright Privacy S_ystem Sta#us http://www.dnr.state.ak.us/las/Case_Abstract.cfm?FileType=ADL&FileNumber=389737&... 1 /4/2007 Ch¢ck No Check Date Bank Bank No Vendo Marathon Oil Company ~ Direct Inquiries to: f1CCOUNTS PAYABLE DEPARTMEN Hndig P. O. Box 22164 T 1249789 12J12J2006 CBAS 7780 50011 ruisa, oK 7at zt -2t sa Accts Payable Comact Center ;:;>:•:::;::::;;:.;::.;:;:~;:.;:;:;;::z: E:::;;.::. N~%WdC43~1tqribet : ;: :z::;;: :;:<:::;::>:.::: i:: :. ItavW62l3~: ::::; ;;:;;:;::;:;.; ; ; ;E~4CEN~f€fell'I~P ;:.;:;;.;:<:;:;:.;:.;: ::.:. 3 > :.:::::::.. :.::::.::: :............... R@Aii#C,~jinplli ' , ; Phone: 91 . :: .... &925-6097 '` HS L 100 . 00 12/12@006 1~005439 3 ; ;: ~~:!~~t`;'.;' .; ': `';:;;i.t7is~Oiri~f ;s? ' ', k~Yiri relPeie`llitmttrtli:. :; . TOTAL: 100.0 0 100. 100.0 0 100. ' ~T~~.~~~. ,. (FOL D ON PERFOqATION BELOW AN~ ~FTar-~ rucru cTi ic occnor n~ o..~~r~.~... ; ~~~~Ill~hl~lllllllll~l~ll~. ~ ~ ~~ ~~~~~ ~~ ~ I~~~%!II ~'~~~ e ~ 02:~,. ; . .. ~ ~' ~~ ~ ;,,~ r~~'~ ~i'000 1 249 789i~' ~:04 L 203895~: 0 L83484~i' ~ ~ T~2ANSMIT"TAL LET"TER C'~i~CKLIST wELL N~NiE G•e,Qss~:~-~ ~s,~ro~.~o.~ ~s P~'D# 0~70,~-OD/ / Development Sec-vice Exploratory Stratigraphic ~'est Non-Conventional Well C'ircle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK i ADD-ONS w'HAT ~ (OPTIONS) APPLIES I TEXT FOR APPROVAL LETTER ; I MliLTI LATERAL ~ The permit is for a new we(lbore segment of existing ~ i I ~ ~ well , ; ~(If last two digits in I Permit No. , API No. ~0- '' ' i API number are ; ; between 60-69) ; Production should continue to be reported as a function of the i ~ original API number stated above. i ~ ~ ~ - , ; ; ; PILOT HOLE i In accordance with 20 A.4C 25.00~(~, all records, data and (ogs i ; ; ! acquired for the pilot hole must be clearly differentiated in both ~ I i ~ well name ( PH) and API number ~ j ~ !(50- - -_) from records, data and lo~s I I i ~ acquired for well , ~ i i SPACING The permit is approved subject to ful ompliance with 20 AAC ~,Q~ ; EXCEPTION ~ 2~.0>j. Approval to perforate and roduc / in'ect is contingent !~ ; I upon issuance of a conservation approving a spacing ~~ ,~~ I ~ exception. it.~i0,ei0yfih~O~L C'O. assumes the ' ~. b ~ I liability of any protest to the spacing exception that may occur. i 4 J ~ ' ~ DRY DITCH ( All dry ditch sample sets submitted to the Commission must 6e in ', i SA'.~IPLE I no greater than 30' samp(e intervals from below the permafrost or !' I i from where samptes are first caught and 10' sample intervals i ;' ~ through target zones. i , ! ! ~ Please note the fo[lowing special condition of this permit: ~ Non-Conventiona! ~ j production or production testing of coal bed methane is not allowed ;' I~'z~I ' for (name of well) until after (Companv IVame) has desi~ned and ~ ~ '. implemented a water we(1 testing program to provide basetine data ~ j ; on water quality and quantity. lCompanv Name) must contact the I ~ ~ Commission to obtain advance approval of such water well testing i ~ _ _ _ ~ program. 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I o. ~ m o m _ a~ ~; -o ` Y ~o ~ ~ ~.~ a~, _ u _ c ~ m ~ ti ~, m ~ - ~''~... Q o~ o 0 0 ~~ ~~ a~ o , o o 3, ~ ~ 3 m~ v ~, -C vs u ~' ~ ~' v i m' d oi' ~ a °' --.-~ ;~~ a~ , ~ ~~ °~ °~ °~ ~, ~, a~ 4~ a~ ~ ~ 3~ o I o ~' ~' ~; ~' m a~ a t ~ c O O ° a a°i' I a m' ~a af6 o, p ~ ~ ~ , a i a ~ ~ S' ~~; cn, _ . o, o a' a ~ ~ Q a z,~ ~ , ~n v: ~, , ~ . c~ ¢~ Q, , . - q m m c~, ~; y' ~' ~ a o i v~, cn, ~ ~- Q ~ ~.. ~ " O.-- N M V U7 CO N ~ ~ N N N N M M M M M M M M --~ \ ,. ' p ~ ___ N ___ M d' ~fI (O __ __ ._.. ___ _ I~ 00 __ ~ ~ e- - _ ~ ___ ~ ~ ~ ~ __. _.__ _._ ..._ _ e- __ N . N N N M N N - - M ...._ __ _. __.___ _ ~` : ~ V _ _ __ _.. _ __. _. -, ~ ~ d °o ~ ~; °o I ~ w? o c o ~ jp N ~ O) ~p N ~ ~ 10 N 0 V O tn O :=~ ~ I p~ ~ , . ~ O W O f6 ~~ ~ ~ ~7 p N y • ~ ~ I ~ ~ ~ .: ~ o ~ c~ , W tq U ~ \ Q Q Q W Q ~ ~ Q Ua ~ . Well History File APPE~IDIX Information of detailed nature that is not particulariy geRnane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simpl'rfy finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. ~ • ~ Grassim Oskolkoff #5 SEC 23 T1N R13W SM January 15, 2007 - February 04, 2007 Craig Silva: Senior Logging Geologist John Lundy: Senior Logging Geologist ~o'~-aac ~ ?~-3l~ M MARATHON OIL COMPANY Grassim Qskolkoff #5 • TABLE OF CONTENTS 1 MUDLOGGtNG EQUIPMENT AND CREW ...............................................................................................2 1.1. EQUlP1U1~NT SUM~9ARY ........................................................................................ ....2 1.2. PERSONNEL ...... .. . . . . ... ..... .. ..... ..... . . . . . . . . . . . . . . . . . . . . . .... ... . . ... . ....... ... . ... ... . ... . . .... .. ... . . . . . . .. .. ... 2 2. GE NERAL WELL DETAILS ......................................................................................................................3 2 .1. OBJECTlVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.2. WELL RESUME ....................................................................................................... ... 3 2.3. HOLE DATA ................................................................................................................3 3. GEOLOGiCAL DATA ................................................................................................................................4 3.1 _ LITHOLOGY REVJEW ...................................................................... . ...................... .... 4 3.2. SAMPLIIVG PROGRAM AND DlSTR18UT/OA1 ......................................................... ..17 4. DR ILLING DATA ...............•---•--..............................................,................................................................18 4.1. DAILY ACTIVITY SUMMARY ...................................................................................18 42. SURVEY RECORD ................................................................................................. ..27 4.3. MU~ RECORD ..........................................................................................................32 4.4. B/T RECORD........--~~---...--• .......................................................................................35 . 4.5. DRILLING PROGRESS CHART .............................................................................. 36 DA1LY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III ~ ~ EPOCH ~ M MARATHON OIL Ct)MPANY Grassim Oskoikoff #5 • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY ~ Parame#er Equipment Type And Position T~~~ Downtime Comments Standard Air Drive Trap Mounted In Ditch Gas Possum Belly; FlD Total Hydrocarbon 0 Anal zer And Chramato raph Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On ~ Drum Shaft Pump stroke counters ~~~alty Mounted Magnetic Proximity ~ Sensor Hookload / Weight on bit (VNOB) Hydraulic Pressure Cell 0 Drill string torque Digital Signal From Top Drive 0 Top drnre rotary (RPM) Functional on Glacier #1 Q Requires new source signal Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI f MFO) ~FI Derived From SPM / MFO From ~ Flow Paddle Pit volumes Vega Sonic Pit Sensors In All Pits 0 and theTrip Tank Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Expiosion Proof Touch Screen 0 1.2. PERSONNEL ~ U Unit Number: MLOOfi Grassim Oskolkoff #5 Mudloggers Years Experience Days at well Sample Catchers Days at well Technician Days at well Craig Silva 29 39 Scott Oliver 14 Steve Forrest 4 John Lundy 17 37 Paul VEfaiker 92 Ramon Mejia-~dal 7 Paullverson 5 ~~ EPOCH 2 M MARATHON QIL CQMPANY t~rassirn Oskalkoff #5 ~ 2. GENEI2AL WELL DETAILS 2.1. OBJECT/VES The objective of Grassim Oskolkoff #5 is to successfully drill and log a Singls Zone Development Gas wetl in the Ninilchik Unit gas field (Tyonek Pool), with a minimum of hole problems or other concems, and then #olfaw Marathan production procedures until the free is in ~tace and tested. A standard completion without the rig is planned. 2.2. WELL RESUME fJperator: MARATHON OfL C~MPANY WeH Name: Grassim Oskolkoff Field: Ninifchik Unit (UpperTyonek Pool) County: Kenai Peninsula Borough State: Alaska Company Representatives: John Nicholson Mike Feketi Dan Byrd Rowland Lawson Location: 3083' FSL 2988' FEL, Sec23 T1N R13W SM, X=229026.87Q, Y=2255049.140 Classification: Single Zone Development Gas API #: 50 -133 - 20565 - 00 Permit #: 207 - 001 ActivityCode: {V1BS#s) DD.06.14432.CAP.DRL, DD.06,14432.CAP.CMP Rig Name / Type: Glacier #1 / Land / Qouble Elevation: Ground, RKB 166.40' GL, 187.40' RT ary Targets: / Target Depths: Upper Tyonek /(8706', 6314'~ econdary Targets: l Target Depths: None Spud Date: January 15, 2007 Total Depth 10384' Total Depth Formatian: Tyonek Total Depth Date: February 4, 20d7 MWD Company: / Taols Run: 8aker Hughes Infeq / Directional MWD Directional Drilling: Baker Hughes Infeq Drilling Ruids Company: M-I Drilling Fluids Logging Companies: Weatherford Wiretine Services: (ntermediate hole Quad-Combo on shuttte. Weatherford Wireline Services: T.D Quad-Combo on shuttle and MFT on wireline. 2.3. HOtE DATA ~ Grassim Oskolkoff #5 Hole Maximum Depth T.D. Mud Deviatian Shoe Depth F.I.T. Section MD SSTVD Formation ~p ~~}t (°inc} Gasing MD SSTVD EMW 12'/° 2265' 1725.51' Sterling 9.3 66.4 9 5!" 2264' 1725.11' 17.3 8'/2" 6744' 4191.09' Betuga 9.6 20.8 7' 6730' 4178.01' 18.4 4$/. x 7" 103$4' 7800.65' Tyonek 9.5 8.0 ~ y~2A Liner 10097' 7515.85' Standard Completion ~ El'OCH 3 M MARATHQN OIL COMPANY Grassim Qskolkoff #5 ~ 3. GEOLOGlCAL DATA 3.1. LITHOLOGY REVIEW Tuffaceaus Ctaystone (2265'-2500'} = medium light gray to medium gray; common light brownish gray secondary hues; many thinty {ocalized variations of secondary huss and lightness value; in general the "ashier" fhe zone, fhe iighter the cotoration; soft to slightly firm; shapeless and globular when soft and hydrated, to irregular, slightfy blocky cuttings with rounded down edges when slight firm; trace of firmer claystone that is gradational to tuff shale; dayey texture overall, with siltier or ashier beds, zones, streaks or patches; earthy to dull to oecasional microsparkly luster (when abundarrt discernible glass shards); fair to goQd adhesiveness and cahesiveness when well hydrated; trace to common to locally abundant very dark brown to black micro thin carbonaceaus laminations and partides; soluble clay is apparen# supporting matrix #or sandstones. Sand/Sandstone/Conglomeratic Sand (2265'-2750'j = medium dark gray to medium gray; local dark gray; very common mixed dark and light gray, and slightly dirty, pepper with sc,attered salt appearance; locatly has very faint light brownish gray or very faint olive gray secondary hues; very fine lower to medium upper with tocalized trace to spotty fractions of coarse lower to very coarse lower fraations; 85- 95°la moderate to moderately wefl sorted within fine lower to medium lower range; very fine fraction, and especially very fine fower appear to be nearly all glass shards winnowed from volcanic ash; 85~o to near 100% is angular to subangular and discoidal to subdiscoidal, but local zones have significant (and occasionatly slightly dominant) sub rounded to rounded and sub spherical to spherica! grains; very dominantly disaggregated; evident that supporting matrix is very soluble tuffaceous clay; trace to s~tty cansofidated sandstane ranges from clay matrix supported to grain supparted calcite cemented; most sandstone pieces display mixed sup~rt. Sand/Sandstonel~Conglomeratic Sand (2265'-275d') = dominant compositional graywracke {>30% . lithics) to lithic arenite; estimate 20-50°k quartz and volcanic glass; trace feldspar, ~-15% chert, chalcedony and other minor forms of cryptosilica; 30-75'~0 lithic grains and mafic minerals; mafic minerals dominantly dark gray to black; most mafics are not easily identifiable, but augite appears dominant; 80-90°~ of lithics consist of dark medium gray to grayish black to black phyllite rack fragments; most phy!lite grains have a very dis#inctive dense surface "graininess" and some have a slightfy schistose appearance; 5-15% of lithics are dark gray to black argillite fragments, and the remaining trace-10% of lithics are dominated by grayish green to variegated green to light green low grade metamorphic greenstone rock fragments; 80~0 of quartz is colorless to very pale gray to very pale brawn and translucent, and 20% of quartz and nearly 100°~ of volcanic glass is colorless and transparent. Tuffaceous Claystone/Tuffaceaus SittstonelTuffaceaus Shale/Votcanic Ash (2500'-3000') = group of closely associated lithologies all originally derived from vofcanic ash, and overall can be considered as clayey-silty tuffaceous mudstone with localized and oRen subtle variations in texture and composition; the tuffaceous clay fraction is dominant and is also the most abundant supporting material for most of the adjacent sands; clays are followed in abundance by tuffaceous siltstone, then tuffaceous shate and finally volcanic ash; though many ctay sections may appear massive, many cuttings pieces of tuffaceous mudracks reveal micro thin irrterbedding of the various lithatogies; tuffaceous mudracks are mostly medium gray to light brownish gray with many subtle variations of gray and brown primary cofors and secondary hues; most common variation is darker brownish gray from the addition of brownish black organiGcarbonaceous material; overall soft to slightly firm; easily hydrated; shale fradion is often firmer, and will separate in a rough sub-fissile planar fashion; mostly clayey texture, but locally common silty to ashy to various soft rqatte and mixed textures; earthy to dull to spotty microsparkly fusters; note that identified valcanic ash on the log is almost always closely gradational ta the bufk tuffaceous clay, but appears to have been less disturbed by reworking, is discemibly more shard-rich, and is consistently "ashisr" and "glassier" overall than the earthy-looking day; note rare individual pieces of volcanic ash have a very faint secondary te~cture that appears to mimic the ash's original vitriGastic texture; soft days have moderate to good adhesiveness and poor to moderate cohesiveness when well hydrafed; neariy ati ~ clays and sitts are hydrophiiic, but same of the "glassier" ash appears to be hydrophabic. ~ EP+C)~H 4 M MARATHON OIL COMPANY Grassim Clskolkaff #5 ~ Sand/SandstonelConglomeratic Sand (2750'-3300') = dark gray to medium dark gray to medium gray; carr~mon contras#ing mix of dark and light gray; has a pepper with scattered salt appearance; "cleaner" sands often have very fain# otive gray secondary hue; some "dirtier" sands have light brownish gray secondary hue; very fine lower to medium lower with localized spotty fractions of inedium upper to very coarse lower fractions; 85-95% moderate to moderately well sorted within fine lower to medium lower range; very fine grains, and especially very fine lower, are very abundantty glass shards winnowed from volcanic ash; 85% to near 95% is angular to subangular and discoidal to subdiscoidal, but minor zones have predominant sub rounded to rounded and sub-spherical #t~ spherical grains; very dominantly disaggregated; evidenf that supparting matrix is very solubte tuffac:eous clay; trace ta spatty consoiida#ed sandstons ranges from clay matrix supported to grain supported calcite cemented; most sandstone pieces display mixed support. Sand/Sandstone/Conglomeratic Sand (2750'-3300') = pervasive compositional graywacke (>30% lithics) to t~ace tithic areni#e; estima#e 20-4Q% quartz and volcanic glass; trace feldspar, trace-10% chert, chatcedany and a#her minor forms of ayptosiiica; 40-80°~ lithic grains and mafic minerals; mafic minerals dominantly vitreous, translucent to marginally opaque brorrvnish black to black; augite dominates; 80-90°/4 of lithics fraction is dark medium gray to grayish black to black phyllite rock fragments; most phyllite grains have a very distinctive dense surface "graininess" and also often have a near schistose appearance; 5-15°~ of lithics are dark gray to biack argillite fragments, and the remaining trace-10% of lithics are dominated by grayish green to variegated green to light green tow grade mefamorphic greenstone rock fragmenfs; 86% of quartz is colorless to very pate gray to very pale brown and translucent, and 20°k of quartz and near 100R~o of volcanic glass is coloriess and transparent. Tuffaceous Claystone (3000'-3400') = medium light gray to medium gray with light brownish gray secondary hues; note many subtle variations of gray and brown primary cotors and secondary hues; loeal variations in lightness value; generaily, the "ashier" the zone, the lighter the coloration; saft to slightly firm; shapeless and globular when soft and hydrated, to irregular, slightly blocky cuttings with ~ rounded down edges when slight firm; traces of firmer claystone that is grades to tuffaceous shale; overatf cfayey texture, with siMtier or ashier beds, zartes, streaks or patches; earthy to dull to occasional microsparkly luster (when abundant discemibie glass shards); fair to go~od adhesiveness and cohesiveness when well hydrated; trace to common to locally abundant very dark brown to black micro thin carbonaceous iaminations and particles; solubie day is apparent supporting matrix for sandstones. Sand/Sandstone (3300'-3500') = dark gray to medium dark gray; faint olive black and brownish gray secondary hues; fine lower to medium lower, moderately well sorted in fine lower fo fine upper range; very fine fraction nearly all glass shards; note decreasing grains of inedium upper and larger grains; angular to subangular and discoidal-subdiscoidal very dominant; nearly all disaggregated; evident support by very soft soluble tuffaceous clay matrix; compositional graywacke; some zones have up to 80% lithics; 20-40~o quartz, trace feldspar, trace-1 Q% chert, chalcedony and other minor cryptosilica, 50- 80°Jo lithics and mafic minerals; mafic dominantly dark grayish brown and black vitreous, translucent to opaque grains; augite is discemible, trace biotite; lithic grains 80-90~o phyflite rock fragmenfs, followed by 10-15% argillite, and trace-10°!o all other lithic types; trace of greenstone (ithics; minor very fine clastic coaL Tuffaceous ClaystoneJSiltstone (3400'- 3700') = light to medium gray with a persistent light brown secondary hue; soft to accasionally moderately firm in samp(es; gtabutar to occasional slightty tabular cuftings habit; generaity slightty silty to slightfy sandy; grades to and inferbedded with clayey sand/sandstone/tuffaceous sittstone; fair to good adhesiveness/ cahesiveness; moderately hydrophilic; hydrates rapidly; soluble; trace to common micro thin carbonacsous inclusionsllaminations; trace to abundant micrafine to fine volcanic glass partieles impart a microsparkly luster; occasional thin coalfcarbonaceous shale interbeds; very slightly to non caicareous; locally slightly shaly in part. ~J ~~ EP~CH 5 M MARATHON OIL COMPANY Grassim Qskolkoff #5 ~ Sandstone (3500'-3800') = medium to dark gray overall with a slight brownish to olive secondary hue; soft to uncons+~lidated or disconsolidated; rare soft, very clayey matrix supported sandstone fragments; appears to be primarily ma#rix supported in silty ash/clay matrix; matrix is moderateiy to very hydrophilic, moderateiy cohesive, slightiy adhesive; poorly sorted overatl locally well sorted; very fine to fine upper predominates, with aceasianal zones where medium lower is common; indiv~ual grains consist primarily of inedium to dark gray lithiGmafrc minerat fragments with up to 25°~ clear to translucent white quartzlvoleanics grains; volcanic glass shards are common in the very fine to fine grain size range; generaliy silty; grades to and irrterbedded wifh associated tuffaceous claystonelsiltstone; very slightly catcareous. Tuffaceous Claystone/Siltstone (3704'- 380Q') = light to medium gray with a persistent light brown secondary hue; in the upper part of the section, grading to tigM and medium blue gray to light gray beginning at 3800; cuttings are saft/clayey to slightty and very sandy; globular amorphous to increasingiy tabular and irregular slightly eroded cui#ings habit; upper portion of the zone has abundant rr-icro fhin carbonaceous laminations and very fine carbonaceous inclusions; lower clays (bluish gray) are cleaner and have rare to very slight trace inclusions as above grades to and irrterbedded with clayey sand, sandstQ~e, a~d tuffaceous siltstone; fair to good adhesiveness and cohesiveness; moderately hydrophilic; easily washed away by water or mud system; trace to abundant micro-fine volcanic glass shards irnpart a microsparkly luster, occasional thin coal, tuffaceo~s shale and car~bonaceous material interbeds non to very stighfiy catcareous. Sandstone (3800'-4d00'} = medium to dark gray overati with a slight brownish to olive secondary hue; soft, appears as loose unconsolidated or disconsolidated grains in sample with common to rare very clayey matrix supported sandstone fragments; appears to be primarily supported in silty-ash-clayey matrix; matrix is moderately to very hydrophilic, moderately cohesive, slightly adhesive; poorly sorted overall locally well sorted; very fine to fine upper predominates, with occasional zones where medium lower is common; trace to occasionai{y common angular to moderately spherical medium upper lithic ~ fragments; generally angu{ar to subangular ta subdiscoidal grains; individual grains consist primarily of medium to dark gray lithic fragments and mafic minerals with up to 25% clear to translucent white quartz and volcanic glass grains; volcanic glass shards are common in the very fine to fine grain size range; generally silty; grades to and irrter~dded with associated tuffaceous claystone/siltstone; very siightly calcareous. Tuffaceaus Claystane (3800~-a2aa'} = medium light gray to medium gray with light brownish gray secondary hues; note many subtle variations of gray and brown primary colors and secondary hues; local variations in lightness value; generally, the "ashier" the zone, the lighter the coloration; soft to slightly firm; shapeless and globular when soft and hydrated, to irregular, slightly blocky cuttings with rounded down edges when slight firm; traces of firmer claystone #hat is grades to tuffaceous shale; overall dayey te~dure, with local siftier or ashier zones or streaks or pafches; earthy to dull ta accasional microsparkly luster (when abundant discemibfe glass shards); fair to good adhesiveness and cohesiveness when well hydrated; trace to common to locatly abundant very dark brown to black micro thin carbonaceous laminations and particles; soluble clay is apparent supporting matrix for sandstones. Tuffaceous Shale {415d'-4600') = medium gray overall; light medium to dark gray range; common faint brownish gray secondary hues; soft to slightly firm; occasionalty firm fo slightly briftle; note that tuffaceaus shale (and associated tuffaceous claystone) appears massive and structureless when soft and hydrated, but firmer and more brittle cuttings pieces will part in either rough or clean planar fasnion; despite thin lineations with concentrations of discernible shards, appears dominantly more argillaceous than ashy; where the locatized te~cture does become "ashier", the shards, though sparse, appear to be more evenly and widely distributed; clayey to slightly ashy texture; earthy to dull luster; some clay faces at separations have a sfick appearance; occasional micrasparkly luster if "ashier"; abundant pieces with micro thin carbonaceous laminatians; non to rare very slighfiy calcareous. ~ ~~ EPOCH 6 M MARATHQN OIL COMPANY Grassim Qskoikoff #5 ~ SandlSandstone (4000'-4700'} = dark gray to medium dark gray; occasionally higher lightness value to medium gray; IocaNy is mixed light and dark gray; some has the appearance of pepper with scattered satt; commonly has fairrt olive black or brownish gray secondary huss; very fine lower to medium upper; mostly moderately well sorted in fine lower to fine upper range; apparent gradual fining upward through massive-laoking sand sections, wnere the same degree of sorting is extended through a wider ra~ge of grains sizes (very fine upper to medium lower); grains larger than medium tavyer are present in only trace amounts; note that most of the very fine fraction, and neariy all very fine lower grains appear to be glass shards that have l~en winnarhred from volcanic ash; ~-99°,~ of sand is angular to subangular and discoidal to sut~iscoidal; trace to minor fradion (especialiy in upperrrzost zones a# massive fining upward sections) are sub rounded to rounded and sub spherical to sphet~cal; extremely abundant disaggregated grains {most retums are near 100°l0); consolidated sandstone present is mostly supporked by soft soluble tuffaceous claystone, which with constant jetting when washed will be quickly reduced to loose grains; a smal! fraction of sandstone is both matiix and grain supported by a mix of day-silt-ash and calcite and/or silica cements; rare more brittle, harcier sandstone is calcareous and grain supported. Sand/Sandstone (4040"-4700'j = nearly all is compositional graywacke (>30% lithics}; locaf very thin zones are borderline lithic arenite; estimate 20-60°~ quartz and volcanic glass, trace feldspar, trace-15% chert, chalcedony and other minor f4rms of cryptositica; 30-80% lithic grains and mafic minerals; other than augite and many of the micas, most of the mafic minerals as cuttings are not easily iderftifiable; most mafics are opaque to translucent in part, dominantly vitreous-looking, and mostty variegated black, gray, brown, greenish brown, brownish black and greenish black colors; most of the black and grayish black mafics are difficutt to distinguish from the black colared lithics; "goldish, yellawish" brown color phase biotite can be difficutk to distinguish from "coppery" colored phlogopite; magnetite can be discerned; 80-90°!0 of entire lithics-mafics fraction is dark medium gray to grayish black to black phyllite rock fragmenfs; many phyllite grains have a very distinctive dense surface "graininess" and also have a slightly schistose appearance; 5-15°~ of lithics are dark gray to black argillite fragments, and the remaining trace-10% of lithics are dominated by grayish green to variegated green to light green low ~ grade metamorphic greenstone rock fragments; 75-80°1o af quartz is colorless to very pale gray to very pale brown and translucent, while 20-25°~ of the quartz {especially the finer grains) and nearly 100% of fhe grains of volcanic g(ass is colorless and transparent. Tuffaceous Claystone/Tuffaceous Siltstone/Tutfaceous Shale/Volcanic Ash (4600'-5000') = all are c{osely associated lithalogies that have been derived from volcanic ash, and overafl can be considered as clayey-silty tuffaceous mudstone with lacalized and often subtle variations in te~cture and camposition; the tuffaceous clay fraction is dominarrt and is also the most abundant supporting material for most of the adjacent sands; clays are fiollowed in abunda~ce by tuffaceous sittstone, then tuffaceous shale and finaity volcanic ash; though many clay sections may appear massive, many cuttings pieces of tuffaceous mudrocks reveal micro thin irrterbedding of the various lithologies; tuffaceous mudrocks are mostly medium gray to light brownish gray with many subtte variations af gray and brown primary colors and secandary hues; most common variation is darker brownish gray from the addition of brownish black organic/carbona+ceous material; overall soft to slightly firm; easily hydrated; shale fraction is often the firmest, and pieces will separate in a rough sub fissile planar fashion; mostly Gayey texture, but locally common silty to ashy to various soft matte and muced textures; earthy to dult to spotty microsparkly lusters; note that iden#ified volcanic ash on the log is almost always closely gradational to the bulk tuffaceous clay, but appears to have been less disturtied by reworking, is discemibly more shard-rich, and is consisterrtly "ashier" and "glassier" c~verafl than the earthy-looking clay; note rare individual pieces of volcanic ash have a very faint secondary texture that appears to mimic the ash's original vitriclaskic te~dure; soft clays have moderate to good adhesiveness and poor to m~erate cohesiveness when well hydrated; nearly a11 days-siRs appear hydrophilic, but some of the "glassie~' ash is possibly more hydrophobic. ~ ~~ EPOCH 7 M MARATHON OIL COMPANY Grassim Qskolkoff #5 ~ Sandstone (4700'-52Q0') = medium: to dark gray overall with a slight brownish to alive secondary hue; sample washing praduces extremely abundan# loose separated grains and trace to minor soft very clayey matrix supported sandstone blebs and fragments; appears primarily supported in sifty ash/clay matri~c; matrix is moderately to very hydrophific, moderately cohesive, slightly adhesive; poorly sorted overall locally well to moderately v,rell sorted in either the fine upper or medium lav~rer grain size range; there are oceasional zones where medium lov~rer is common; trace to occasiona)ly eommon angular to moderately spherical medium upper to coarse lower lithic fragments in distinct local zones; generally angular to sub- angular ta sub-discaidal grains; individuai grains co~sist primarily af inedium to dark gray !i#hicfmafic mineral fragments with up to 25°k clear to translucent white quartz/valcanics grains; volcanic glass shards are comman in fhe very fine to fine grain size range; generaily silty; grades to and interbedded with associated tuffaceaus claystane/silts#one, very slightly calcareous. Tuffaceous Claystone/Siltstone (4600'- 5200') = light to medium gray with a slight very light brawn secondary hue; saft to occasionaily moderately firm in samples; gtobuiar to occasional slightly tabular cuttin~s habit; generalty siightly sitty to sfightiy sandy; grades to and interbedded with clayey sand/sandstone/tuffaceous siftstone; fair to goad adhesiveness and cohesiveness; moderately hydrophilic; easily washed away the mud system and water; trace micro thin carbonaceous particlss and laminations; trace thin shale, coal and carbonaceous material interbeds trace fine it micro-fine volcanic gfass shards impart a microsparkly luster; non to very slightly calcareous. Sandstone (5200'~460') =medium to light gray overall with a pervasive slight brownish secondary hue, prima-ily in the abundant soft ashy/day matrix; saft ta disaggregated in samptes, locally well sorted; frne lower to very fine upper predominates; occasional zones with abundant medium lower to trace medium upper and coarse sand grains and rare to trace coarse pebble fragments; sand is becoming more predominantly subspherical with mino-ity angular to sub angular grains; angular and subangular sand and pebble fragments are almost exctusively in the medium to lower coarse size range; occasional thin zones where more angular material is grain supported but ma#rix support predominates; matrvc is light to ~ very light brownish gray clay/ash, moderately to slightly hydrophilic and easily washes away in wash water and in the mud system; individual grains are becaming more predominately translucenf light gray to clear quartz and volcanic glass with minority angular to subangular light to medium gray colared lithics; trace bright to brick red, green, rose blue gray, and mottled o~ange grains; trace dark gray to t~ack mafic minerals and lithic grains; trace to abundarrt fine carbonaceous inclusions; trace thin coal interbeds; grading to and interbeded with light gray tuffaceous claystone/ siltstone; very slightly calcareous. Tuffaceous Claystone (5000'-54G0'} = light to very light gray; same with a siight bro~rnish secondary hue; generaNy as soft giobuiar masses; common slightly tabular to irregular fragments of firmer material; dull earthy luster predominates; common microsparkly fragments; common to abundant micro-thi~ carbonaceous laminations; commonly found as flakes washed from the clay matrix; trace very fine carbonaceous inclusians; slightly silty in part; trace ta common thin carbonaceous shale; trace thin shaly coal interbeds; Gay grades to tuffac:eous siltstone and sandstone; very slightly to non calcareous. ~~ ~~ EPOCH $ M MARATH4N QIL CQMPANY Grassim Q~kolkoff #5 ~ Sand/Sandstone {5460'-5960') = medium dark gray to dark gray; loca[ very faint olive gray and brownish gray secandary hues; very fine lower to medium lower; very sparsety scattered larger grains to coarse lower; mostly maderately well sorted in fine lower to fine upper range; appears imperFect fining upward; uppermost zones of massive sand sections are often very fine upper; very fine sand overafl, and espsciatly vsry fine lower consist almost entirely of glass shards vvinnowed from volcania ash, the most abundant sand size fraction is just below the fine upper-medium lawer boundary; angular to subangular and discaidal to subdiscoidal still very dominant, but note increased fracfion of sub rounded and sub spherical grains; continued very abundant disaggregated sand grains, but observe sign~cant increase of clay matrix supported sandsfone; matrix cfays appear to be stickier and less susceptible ta going ir~to solution; much of the supporting clay displays increased glass shards, micro mica, carbonaceous micro particles, rare blebs of devitrified ash, soft marfy specks, microcrystaiiine calcite and larger silt fraction; minar slightly brittle sandstone is both grain and matrix supported by a combination of soft mariy tuffaceous claystone and powdery to microcrystalline calcite; note that after 5530' that there is a consistent minor fraction of sandstone supported by a distinetively shard-rich and ashy tuffaceous clay matrix; rare "clean" grain supparted calcareous sandstone; continued dominant sand type is campasitional graywacke, but also lacally grading to lithic arenite; overall increase in quartz; estimate 40-70% quarkz and volcanic glass, trace feldspar, 5-15% et~ert, chalcedony and other cryptosilica, 25- 60°!0 lithics and m~c minerals; most identifiable mafics corrtinue to be augite ~iotite mica; other m~c minerals are very difficult to identify in cuttings, but dominarrtly are opaque to translucenf in part, generally vitreous-looking, and mostly variegated black, gray, brown, greenish brown, brownish black and greenish black colors; micas are dominant a goldish or yeilowish brown color phase af L~atite or coppery yellow phlogopite; local black magne#ite mir,~o-particles; lithics-mafics fraetion is 74-90°/a dark medium gray to grayish black to bleck phyllite rock fragments, with many grains having a rough slightly schistase surface appearance, followed by 10-20°~ dark gray to black argillite fragments, and trace-10% other lithics dominated by grayish green to variegated green to light green low grade metamorphic greenstone rock fragments; 75-80% of quartz is colorless to very pale gray to very pale brown and translucent, while 20- 25°k of the quartz (especially the finer grains) and nearly 100% of the grains of valcanic glass is colorless ~ and transparent. CoaUCarbonaceous Shale (5300'-6000'j = black to brownish black to very dusky brown; ranges low grade sub bituminous to very low grade lignite that itself is grading to carbonaceous shale; coal is brittle and fragils to tough; carbonaceous shale is generally fragile and flaky to very firrn; smooth to very dense matte texture; dull to occasionally resinous or vitreous luster, carbonaceous shale commoniy has an organic ar dayey texture and dull luster; mostly irregular subplaty to hackly fracture; accasionatly planar fracture or birci eye frac~ure; higher grade coal displays some conchoidal to subconchoidal fraature; very minor visible outgassing; many coal/carU pieces have micro-thi~ irrterbedding of different coal grades, or coal and other lithologies. Sand/SandstonelTuffaceous Sandstone (598fl'-6300') = light gray to medium gray; dominantly medium light gray; abundant, nea~ly pervasive very faint yeliawish gray and pale yellowish brown secondary hues; coloration generally due to slight yellawish color of matrix volcanic ash and tuff cfays; parts of sandstone can appear claysy, silty or micromicaceous, but when separated sand grains are always the dominant fraction; microshards are abundant in the matrix, generally easily discemible, and often encapsulate the denser blotchy patches af "cleaner" sandsfone; very fine fower to meciium up{~r; mostly moderately well to locally well sorted in very fine lower to medium lower range; dominantly size mode is fine upper, dominant angular to subangular and discoidal to subdiscoidal but some sections have significant fraction (15-25%) of subrounded to raunded and spherica{ to subsphericaf; thaugh nearly all matrix supported, many sand grains have a micro thin "skin" of ash and some sandstone is borderline grains supported; locally the tuffaceous sandstone "cleans up", the color assumes higher lightness value, the grains will separate more easily ( and usualiy disaggregate) and the now non-tuffaceous sandstone often becomes slightly calcareous; note significant change in overall composition to sublithic areni#e and lithic arenite; estimate 65-85°~ quartz and volcanic glass; trace feldspar, trace-10% cryptosilica (chaicedony, chert} 15-25% lithics and mafic minerals; lithics fraction has significan#ly less phy8ite- argillite group rock fragments and in+creased variable-green a~d light green low grade meta greenstone ~ fragments. ~~ EPOCH 9 M MARATHON 01L GOMPANY Gra~ssim Oskolkaff #5 ~ SandstonelTuffaceaus Sandstone (&3QQ- 6460') =light te medium to very light gray; generally with a siight yeNowish to occasionaliy brownish secondary hue; trace brown carbonaceous sand; moderately wetl sarted in the sand grain sizes; genera4ty fine upper with locally dominant medium to very fine sand; generally loosely aggregated in a soft yellowish to very light brownish gray clay/ash matrix; matrix is moderately to very hydraphilic and is easily washed away by dNling fluid and wash water; individual sand grains and minority coal and lithic fragments commonly retain a residual stain from washed away ashJc~ay matrix maferiat, poorty cohesive and adhesive; individual grains are predominately subspherical fo subangular to moderately rounded in the fine size range to angufar or subangular in the larger grain sizes; clear to transluce~t white qua~tzlvcrlcanics makes up to 60°k of the sample, abundant gray cotor~d quartz/volcanics, ar~d abundant very fine to medium clear angular volcanic glass fragments; common to very abundant light gray to black mafic minerals and lithic grains; trace angular grayish green lithic fragments; non to very slightly calcareaus overall; trace light gray calcareous tuff; traces of very #hin carbonaceous laminations, fine coal partides and thinly interbedded carbonaceous shale. Tuffaceous Claystone {6200'-6500') = light to very light to medium gray; slight brownish secondary hue in part; soft globufar to sligh#ly firm irregular fragmerrts; clayey #o slightly silty/ gritty texture; dutl earthy luster; occurs as thin interbeds where trace to abundant carbonaceous shale and thin coal interbeds are found; trace microscopic gtass shards impart a microsparkly luster; common black carbonaceous micro- laminations; non to very stightly calcareous. Coa! (6300'-6500') = black ta very dark gray to dark grayfbrown and browrn; maderafely hard to hard to firm; brittle in part; grades to carbonaceous shale and brown sitfy carbonaceous materiat; subbituminous to iignite; abundant ash and sift micro tamina in the carbonaceaus materiai; some conchoidal fracture and discemible cleating in higher grade coals; hackly and fragile in part. SandstonelTuffaceous Sandstone (6460- 6800') = light to medium to very light gray; generally writh a slight yellowish to occasionaHy brownish secondary hue; trace brawn carbonaceous sand below 6660 ; ~ moderately weft to locally weft sorted; mostfy fine upper; very fine to medium range; appears weakly aggregated by a soft yellowish to very light brownish gray hydrophilic ctay/ash matrix; matrix material soluble in part, and easily jetted away during washing; sand, coal and lithic grains commonly display a clay residue after washing; poorly cohesive/adhesive; individual grains are dominantly subangular to sub spherical and sub rounded when fine, and angular to subangular when coarser; colorless and transparent to very pale gray translucent quartz and volcanic glass are up to 6Q°to of sample, followed by abundant medium gray franslucent quartz-chalcedony-chert, common to abundant gray to black mafic minerals and fithics, and consistent trace of grayish green angular (ithic fragments; overall non to very slightly calcareous; trace light gray cat~areous tuff; traces of very thin carbonaceous {aminations, fine coal partiGes and thinly interbedded carbonaceous shale. Caal/Carbonaceous Shale/Carbonaceous Tuffaceous ShaletTufFaceous Shale (6820'-6880') _ overall appears #o be a coaly cart,~naceaus shaty tuffaceous mudstane v5r~h #hin zones that are exctusively a single litholagy; prominent light brownish gray with local zones that darken to brownish black; caal is black to brownish blacl~; various very faint gray and brown sec hues, and also some with v faint but distinctive grayish red to pale red secondary hue; soft to slightly firm; firmer pieces often will separate in imperfect sub planar fashion. C~ ~~ EPOCH 'o M MARATHON C)IL CQMPANY Grassim Oskolkoff #5 ~ Sand/Sandstone/Tuffaceous SandstQne (68Q0'-72Q0'} =light gray fia medium gray; dominantiy medium light gray; abundaR#, nearly pervasive very faint yellowish gray and pale yellowish brown secondary hues; coloration is due to coloration of matrix ash and tuffaceous clays; fractions of sandstone appear clayey, silty or micromicaceous, but disag~rega#ed sand very dominan#; mod to moderately well sorted in very fine lower to med lower range; mostly fine lower to fine upper; massive sands display fining upward; lowermost zanes are generally medium lower to medium upper to borderfine caarse Irnnrer; rare welt rounded v coarse to granute quartz and chalcedony Gasts represent a 2nd made; tra~siucent quartz and c4eae vo4canic gfass grains are dominarrt; common to abundant light to medium gray t~fhics; trace fo occasionaffy common m dark gray to black lithics and mineral fragments; trace blue gray, green and brown grains; commonly matrix supported in very light gray with to whi#e ash and clay; matrix occasionally has a slight yellowish secondary hus; massive sandstone is very often adjacent to thinly interbedded sandy tuffaceous claystone-siltstone and trace ta spotty tuffaceous shale and coat; trace tight gray fo gray brown calcareous tuff; non to slightty caicareous overali. Tuffaceous ClaylTuffaceous Siltstane (7000'-7200') = light to very light to medium gray; slight brownish secondary hue in part; saft globuiar to sfightly firm irregufar fragments; clayey to slightly siity/ griity te~cture; dull earthy luster; occurs as thin interbeds where trace to abundan# carbonaceous shale and thin coal interbeds are found; trace microscopic glass shards impart a microsparkly luster; common black carbonaceous micro-laminations; non to very slightty calcareous. CoaUCarbonaceous Shale {7200'-730d') = very dark gray to black; slightly firm to firm; brittle; angular irregular to trace tabular fragments; hackty in part general(y sfightfy silty; trace visible very thin volcanic ash on bedding surtaces; sub-bituminous to lignitic; #race fragments show slight reddish brown woody residue; no weli deveioped conchoidal fracture; trace to common dark gray to black sifty carbonaceous shale interbeds throughout. SandlSandstane/Tuffaceous Sandstone (7200'-760Q') = light olive gray with pervasive strong light ~ brownish gray and patchy faint medium light gray secondary hues; often has a"di~ty green pepper and salt" appearance; overall color is influenced by the residue color af the supporting clay-ash matrix; nearly all sandstone appears clayey, silty or micromicaceous, but disaggregated sand grains always appear relatively "Gean"; generally abundant microshards in the matrix, often easily discemible, and locally encapsulate denser blotchy zones af "day-poor" sandstone; very fine lower to medium upper, mostly moderately well to locally well sorted in very fine lower to medium lower range; dominantly size mode is fine upper; dominantly angular to surrounded and discoidaf fo sub spherical; note abundant very fine lower grains and rare coarser grains are well rounded and spherical. #haugh nearty ail matrix supported, many sand grains have only a thin "film" of ash and abundant sandstone is bo~cierline grain supported; as the tuffaceous sandstone "clsans up", the color assumes higher lightness value, the matrix becomes more brittle and overafl the rock becomes slightly more calcareous; overall composition is sublithic arenite and lithic arenite; estimate 65-90°k quar#z and volcanic gtass; trace feldspar, trace-10% cryptosilica (chalcedony, chert} 10-20% fithics and mafic minerals; lithics fraction has minor phyltite- argillite group medium grade dark gray to black rock fragments and minor grayish green, variable-green, and light green low grade meta greenstone fragme~ts; augite and biotite are daminarrt mafic minerals, other mafics are translucent to opaque mostly grayish multiple colors and not always discemible from lithic fragments of similar colors; note abundant sedimentary lithics; appears many variations of silt-day micro fragments; very common ta locally abundant grains of light yeltowish brown calcareous tuff; local zanes with very common dastic carbanaceous shale/caal fragments. ~ ~~I EPOCH 11 M MARATHON Q1L C(,IMPANY Grassim Qs~kolkQff #5 ~ Tuffaceous Shale (730Q'-77QQ'} = medium gray overall; light medium to dark gray range; common faint brownish gray secondary hues; soft to slightly firm; locally firm to slightiy brittle; tuff shale (and assaciated tuffaceous claystone appear massive and structureless if hydrated and soft, but when tenacity changes to firm-brittle many cuttings pieces will start to part in rough (to clean) planar fashion; appears more argillaceous than ashy, despite thin lineations-zones of discemible shards; when gradational to non-shaly tuffaceous claystone the texture is not distirtctly "ashier", but sparse visible shards are more evenly and widely distributed; Gayey to slightly ashy texture; earthy to dull luster; some shale pieces have slick ap{~arance at separation points; same wifh floating macrosharrds have micrasparkly luster; often abundant micro thin carbonaceous laminations; generally non-calcareous. Coal (7300'-7700') = black to brownish black to dusky brown; lower grade lignite to sub bituminous; brittle and fragile to brittle and tough to sfightly hard; common associated carbonaceous shale; very dense matte to smooth texture; sub vitreous to vitreous to resinous luster, dominantly irregular planar fracture. Sand/Sandstone (7700'-7900') =light to medium gray with a slight yellowish secondary hue; mod weH to poorly sorked in very fine lower to med upper range; traces of angular coarse lower grains to pebble fragments; most is moderate to moderately well sorted in fine lower to fine upper range; angular fo dominantly subangular to surrounded; individual grains are predominantly clear to translucent white, with common light to medium gray lithic/mineral grains; trace to common dark gray to black lithiclmineral grains trace bluish gray fithics and ye{fowish brown calcareous fuff; common fo abundant angular valcanic gfass shards; averall the material is supported in a fine off white to very light gray white ash/clay matrix with oc~asional slight yellowish secondary hue; occasional areas where at teast pafial grain support is present matrix is very to moderately hydrophilic and easily washes away in wash water and in the mud system; common thin to very thin tuffaceous clay/siltstone, coal and carbonaceous shale interbeds; very slightly calcareous. ~ Tuffaceous Clay/Tuffaceous Siltstone (7700'-7904`) =light to medium to very light gray; slight brownish secondary hue to light and medium gray brown, the latter ~coming more dominant with increasing dep#h; clayey to occasionally gritty to slightly sandy texture; dull earthy luster with slight microsparkly appearance due to minute volcanic glass shards; slightly firm to soft and firrn; globularlamo[phaus to irregular fragments; clayey ta s{ightly silty/ gritty te~cture; duH earthy {uster; accasional fragments display very abundant thin carbanaceous taminatians; common pdc bit gouge striatians on frrmer fragments; accurs as thin in#erbeds in the upper portion of the zone, becoming more massive and containing more frequertt coal/carbonaceous shale beds as depth increases; slightly to very slightly calcareous. Coal {7700'-8Q00') = very dark gray #o black to trace brownish gray; rt~oderately hard to firm; occasionally hard; brittfe; predominantly hackty; occas'ronal thin beds of dean hard caal with marked conchoidal fracture, and sub- vitreous to resinous luster particularly an fradures norma! to the bedding planes; irregular angular to sub tabular fragmerrts; comman ash res~cfue on bedding planes and fractures; comman carbonaceous shafe, tuffaceous claystonelsiltstone and sand inferbeds. ~ ~~ EPOCH 12 M MARATHON OIL COMPANY Grassim Oskoikaff #5 ~ Sand/Sandstone/Tuffaceous Sandstone (7900'-8300'} = note that a significant amount of sandstone and #uffaceous sandstone is matrix supported by a large percentage volume of clay and ash, and consistently is ciosety gradationai to very sandy tuffaceous claystone and/or sand-rich volcanic ash; pervasive light brownish gray; overail co{or is derived from matrix clay-ash; when inter grain matrix volume is reduced the sandstone color becames dominant light olive gray with strong tight brownish gray hues; disaggregated often has a"dirty green pepper and salt" appearance; note that the sandstone adjacent to coal and carbonaceous shale is often a darker brownish gray color due to the accumulations af cc~a! micra-particles ar,~uired during de~sitian; generalfy abundant discemit~e micrashards in the matrix; even when disaggregated the sand grains often have a very thin surface residue af clay; grain supported sandstone with visible cementa#ion is rare; very fine lower to medium upper range; mostly rnoderately well sorted in very fine lower to medium lower; most abu~dant size fraction is ciose to the fine upper-medium lower boundary; rare second mode of much largervery coarse to granufe well rounded quartz and chalcedony fragments "floating" in finer sand; very fine sand is almost all glass shards winnowed from reworked volcanic ash; angular to dominant subangular to subspherical, discaidal ta daminant subdiscoidai ta surraunded; trace to spofty weil rounded; note overall sands appear massive, with subtle fining u~nnrard. Sand/Sandstone/Tuffaceous Sandstone (7900'-8300') = generally non-calcareous but as the matrix "cleans up" there are slightly calcareous consolidated pieces; rare ashy-clayey lithic quartz arenite to lithic arenite; estimate 70-90% quartz and volcanic glass; trace feldspar, trace-10% cryptosilica (chalcedony, chert) 5-20% lithics and mafic minerals; most sandstone has minor phyllite-argillite medium grade meta dark gray fo k~ack rock fragments and minor grayish green, variable g~een and light green low grade meta greenstone fragments; augite and biotite are easity discernible mafic minerals; most other mafics are translucent to opaque multi- hued grayish to grayish btack, and not always discemible from various lithics; abundant sedimentary lithics; many tuffaceous silt-day micro fragments, spotty to common pale yellowish brown calc tuff and clastic coal/carb micro fragmerrts. ~ Sand/Sandstane/Tuffaceous Sandstone (8300'-8500') = most characteristics are the same as in the inferval just descrit~d at 7900'-8300', but note several sign~cant changes: color varies from medium light gray to light alive gray, v+rith the primary calor af one having a very strong secondary hue of the other; the reduced presence of light brownish gray is due to major decrease of tuffaceous ciay matrix volume; commonly appears mottled, since very light gray volcanic ash matrix is contrasted against browner colored tuffaceous claystone; note that overall sorting is slightly diminished, writh more medium grains, but fining upwrard is more evident; the supporting often has more abundant discemible glass shards; roughly same composition but lithics and mafics slighfly more diverse, and very pale brown translucent chalcedany is more abundant; also note trace-2% feldspar. Sand/Sandstone/Conglomerate Sandstone (8500'-8620') = light to medium gray with a slight ~olive to occasionally yellowish secandary hue; poorly to m~erately sorted; predominantly medium lower with variable amounts of fine upper to medium upper grains; coarse lower increasing to the common to abundant range with increasing depth; trace coarse upper in the lower part of zone; individual grains are generally angular to subangular to trace subrounded transtucent white to dear quartz and volcanic glass grains; trace to abundant fight to medium gray lithics; trace ta common dark gray to black lithics and mineral grains; trace brownish gray calcareous tuff grains; y~rcentage of grain supported mater+at is increasing, though matri~c sup~rt stil! predominates; matroc consists of mottled very light gray to off-white and occasionalty very light brownish gray ash and clay; matmc is hydrophilic and solu~e. • ~~ EPOCH 13 M MARATHt)N QIL CQMPANY Grass~im f.~skolkoff #5 ~ CoallCarbonaceous Shale (8000'-9000'} = black to brnwnish black to very dusky brown; coai ranges from low grade lignite to sub bituminous; lowest grade of coal is also grading to carbonaceous shale; coat is brittle and fragile, to brittle and tough, to marginaily hard; coal has very dense matte to smooth texture and wide range of luster from dull to very dense earthy #o sub vitreous to vi#reous #o resinous; carbonaceous shale has organic clayey-sifty to dense matte to near smooth textures and earthy to dull lusters; towest grade coal and carbonaceous shale occasianally have imprirrted and/or imbedded woody material on open faces; most coal displays irregular planar fracture, but some coal displays severa{ variations on habit and fracture type; lower grade coals are generally irregular shaped to sub-blocky or sub-tabular, and very aften have a hackly #racture; higher grade coals more aften have a massive blocky appearance and more distinative fracture #ypes; higher grade lign~e and sub-bituminous have a more distinctively parallel planar fracture, and common sub-conchoidal, conchoidal, and bird eye fracture; translucent to #ransparent, very pale yellow, #o orangish yellow to reddish brown resinite (amt~r) is present in higher grade coals in trace amounts; note many fragments of coal display micro-thin alternating iaminar zones of d'rfferent grade types andtor ather fithofagies; some very distinckive fragments have thin i~er-laminations of coal and volcan"rc ash. Sand/SandstoneJTuffaceous Sandstone (8620'-9100') = medium light gray to light gray with varying faint to strong light brownish gray to IigM olive gray secondary hues; note ~rvasive slightly "dirty" salt and pepper appearance; note that supporting tuffaceous clay matrix has less adhesiveness than above, loose disaggregated grains have less clay residue and appear to be "c{eaner", sand is quartz-rich with relatively few lithics and the result is an overall much grayer color after 8620'; ve[y fine lower to medium upper with trace (and possibly bi-modal) coarse to granule size grains; mocieratefy wel! sorted in shifting range from very fine lower to medium lower; apparent fining up~nrard; very fine-fine in uppermost zones of massive sand sections, and medium lower to medium upper (with trace coarse to very coarse} in basal zones; note very fine fraction, and especialiy very fine lower grains, consists almost entirely of glass shards winnowed from volcanic ash; note that the supporting matrix of the sand is often very "ashy" and a signficant fraction of the matrix has abundarrt shards which may be released during sarr-ple washing; ~ 98-99°~ angular to subangular and discoidaf to subdiscoidal; remaining spotty rounded- surrounded, spherical-sub spherical grains also ap~ar very slightfy more weathered and may t~ 2nd mode; many tiny sandstone fragments are slightly calcareous and have a very slight resistance when pressed rather than "mush down"; abundant fragments ap~ar to be mixed grain and matrix support; lithic quartz arenite to sublithic arenite Sand/Sandstane/Conglomerate Sandstone/Congfomerate {9100'-9370'} = light to medium gray to very light brownish gray with a slight olive to occasionally yellowish secondary hus; poorly to moderately sorted; predominantly fine upper with variable amourrts of fine lower to medium upper grains; coarse lower in trace amounts above 9320' with ocxasional coarse upper and very angular granule; abundant very angular quartzJchert/chalcedony pebble fragments after 9320'; individual sand grains are angular to subanguiar, translucent white ta clear quartz and dear volcanic glass; trace to abundant light to medium gray lithics; trace to camman dark gray to black lithics and mineral gains; trace brownish gray calcareous tuff grains; ve[y abundant Gean matrix free sand from 9100' to 9170'; below 9170' matrix sup~rt becomes dominant; matrix is mottled light to very light gray white with some brownish areas; in part, ash has a slight brownish secondary hue; contains abundant very fine volcanic glass shards and thin to very thin light gray stained areas and partially weathered mica flakes; matrvc is moderately to very hydrophilic and saluble; interbedded with very thin beds of clean whife ash, occasiona( thin tuffaceous ctaystone/siltstane and thin to massive caals; non to very slightly cafcareous. Coal (9100'-9370') = very dark gray to black to trace brownish gray; moderately hard to firm; occasionally hard; brittle; predominantly hackly; predominantly sub-bituminous; lignitic in part occasional thin to moderately thick thin tabular fragmerrts display marked conchoidal fracture, and sub- vitreous to resinous luster particularly on fractures normal to bedding ~anes; irregular angular to sub- tabular fragmeMs; common ash residue at beciding planes and fractures; trace very thin ashy laminations; trace fragments have visible deats; common carbonaceous shafe, tuffaceous claystone/siRstone and sand interbeds; most shale is ashy/ silty with poor to maderate fissility; trace ~ brownish lignitic shale. ~~ ~~~~H 14 M MARATH(~N OIL COMPANY Grassim (JskolkofF #5 • Tuffaceous Claystone (9380'-9500') = Note that a significant fraction is carbonaceous tuffaceous claystone; light brownish gray to brownish gray with strong medium light secondary hues; note many subtle vaeiations of gray and brown primary colors and seeondary hues; generally medium dark hues with lighter zones or streaks when the content of glass shards increases; soft to slightly firm; shapeless and globular when soft and hydrated, to irregular, slightly blocky cuttings writh rounded down edges when slight firm; traces of firmer claystone grading to tuffaceous shale; overall dayey texture, with local siltier or ashier zones-streaks-patches; eaRhy to dull to partially microsparkly if microshards are abundant; fair to good adhesiveness and cohesiveness after hydration; hydrophilic, soluble; common to locally abundant very dark brown to black cart~naceous particles and micralaminations; is the abundant supporting matrix materiaf of adjacent sandstane. Sand/Sandstone/Conglomerate Sandstone/Conglomerate (9374'-9700'~ = light to medium gray to very light brownish gray with a slight olive secondary hue; poorly to moderately well sorted predominantly fine upper to medium lower in the top of the zone; becomes increasingly coarser with depth to predominant medium upper to coarse tower; occasional coarse upper and very angular granule; abundant very angular quartzlchert/chalcedony pebble fragments in locafly high percentages particularly betow coal beds; sand grains are angular ta subangular, translucent white to clear quartz and volcanics; trace to abundant light to medium gray lithics; trace to common dark gray to black lithi .rs/mineral grains; trace brownish gray calcareous tuff grains; locally abundant clean sand; matrix support becomes dominant between 9500' and 9680'; matrix is mottled light to very light gray white with some brownish areas; trace ash has a slight brownish secondary hue; contains abundant very fine volcanic glass shards and thin to very thin light gray stained areas and partially weathered mica flakes; matri~c is moderately to very hydrophilic and is easily washed away in wash water; very commonly ir~terbedded with thin beds of mottled brownish white to light gray white ash; less commonly irrterbedded with thin (to marginally thick) beds of tuffaceous claystone, tuffaceous siltstone, carbonaceous shale and coal; non to very slightly calcareous. • Coal (9500'-9800') = black to very dark gray to trace brownish gray; moderately hard to hard; occasionally harcf; sub-bituminous to very high grade lignite; brittle in part; hackly; fragments tending to be larger and display more mature coal features; fragments are predominantly angular to irregular to sub tabular; abundant to comman conchoidal fracture; common clsating; generally sub-vitreous to resinous luster; cleaner; trace of firm silty and shaly fragmerrts; trace of ash residue on bedding planes and fractures; common brown to brownish gray carbonaceous shale; interbedded with adjacent tuffaceous claystone, tuffaceous siltstone and sandstone. Tuffaceous C{aystone/Carbonaceous Tuffaceous Claystone (9500'-10000'j =light brownish gray to brownish gray to brown; many subtle variatians of gray and brown primary colors and secondary huss; soft to firm; locally slight to moderately brittle; dayey to silty to ashy to various soft matte textures; localized micro-gritty texture when larger glass shards are abundant; earthy to dull luster, microsparkly when shards are very abundant; common to abundant to locally pervasive very dark brown to black carbonaceous particles and micralaminations; atsa nate tighter zanes ar streaks when fraction of glass shards increases; shapeless, globular when hydrated and very soft; irregular slightfy blocky cuttings with sotution- rounded edges whe~ firmer; soft clays are hydrophilic and soluble; fair to good claystone grading to tuffaceous shale; overall dayey texture, with local sittier or ashier zones-streaks-patches; earthy to dull to paftial microsparkly when abundant microshards; moderate to good adhesiveness and cohesiveness when well hydrated; elosely grades to tuffaceous siltstone and shale. ~J ~~ EPOCH 15 M MARATHON OIL GQMPANY Grassim Qskolkoff #5 ~ Sand/Sandstone/Tuffaceous Sandstone (9700'-10100') = note many minor variations of color and grain sup¢ort in this interval; abuctdant sandstone is stil{ dominant medium light gray to medium gray, but significant fractian is influenced by the large amount of adjacent coal and carbonaceous shale and other carbonaceous material that pervades the interval and is medium dark gray to brownish gray; the darker rock is a very carbonaceous tuffaceous sandstone; also note that though the grain size range predaminantly eemains within very frne upper to medium upper, the overall sorting is moderately paor; the lighter colored sandstone often has very mottled appearance with a wide mix of clay, ash, sift, minor calcite cementation, and rare iron oxide staining; carbonaceous sandstone is somewhat better sorted in fine range, but has secand mode of larger floating quartz in additian to caaly fragments; mastly sublithic arenite; dominant greenstone metalithics. Tuffaceous Sandstone/Sandstone/Sand (10100'-10300') = light medium gray to light gray; patches with small spots of very light gray; common very fair~t yellowish brown secondary hue; very fine lower to medium upper with trace "floating" grains to granule; moderately well sorted in fine lower to medium lower range; apparent fining upward; angular to subangular, and discaidal to subdiscoidal; consistent spotty amount of suROUnded-rounded; abundant volcanic ash-tuffaceous Gay matrix support; mast matrix is slightfy devitrified ash and has a clayey tex~ure some matrix consists of "fresher' microshards, is distinctly glassier, and separates easily; very ashy lithic quartz arenite to sublithic arenite. Tuffaceaus Sandstone/SandlConglomerate (10100'-10384') = light to medium gray to mottled medium and light gray brown; m~erately well to poorly sorted; firm to soft; fine upper to fine lower to medium lower; angular to subangular; translucent white to Gear quartz and volcanic glass; abundant minerals and lithic grains are light to medium gray to light greenish gray; trace to locally common mafic minerals and dark lithics are dark gray to black; sandstone is very abundantly matci~c supported by soft to firm medium light gray to very light gray to light brownish gray volcanic ash and tuffaceous Gaystone; matriu clays continue to be hydrophilic, but becoming less soluble; clayey sandstone is non to v slightly calcareous, but note traces of thin flaky "cleaner-looking" calaite-cemented sandstone fragments; visible ~ poros~y is rare; slightly to very sifty when thinly bedded-interbedded with adjacent tuffaceous mudrocks; facaEty high carbonaceaus corrtent; occu~rence and habit of thin and micrathin carbonaceous laminations in tuffaceous rocks is similarly displayed in the sandstones; claystone-siltstone characteristics are unchanged in last 1000'; coals in lower half of this interval are somewhat siltier, shalier and softer than above. • ~~ EPOCK 16 M MARATHON OIL COMPANY Grassim Oskoikoff #5 ~ 3.2. SAMPL/NG PROGRAM AND DISTR/BUTIOtV Gra~im Oskolko~f #5 ~~ Set Type and Purpose Interval Frequency Distribution Marathon Oil Companv clo C~ M Storage, Inc. 2a' 3311 S U.S. Highway 77 A Washed and Dried 2265' -10384' Intervals Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 AOGCC Alaska Oif and Gas Conservation Washed and Dried ~0' Commission th B 2265' -1Q384' Intervals Ave., Suite 100 333 W. 7 Anchorage, AK 99501 Attn: Howard Oakland CHEVRON , 909 West 9th Avenue C Washed and Dried 2265' -10384' Intervals Anchorage AK 99501 Attn: Debra Oudean (90~ 276-7600 SEQUENTIAL BOX INTERVALS : 9 TOTAL: 2565' - 3400', 3400' - 4400', 4400' - 5200', 5200' - 620Q', 6200' - 720Q', 7200' - 8200', 8200' - 9100', 9100' - 9900', 9900' -10384' TD. ~~ EPOCH 17 M MARATH~N (JIL COMPANY Grassim Qskolkoff #5 • 4. DRILLING QATA 4.1. DA1LY ACTfVITY SU~IAMARY 1/08/2007 to 1/10/2007: Drive and transport all Glacier No.1 rig and camp components to the Marathon Ninilchik Unit, Grassim Oskolkoff pad location. Spot the rig on the pad and begin a general rig up to spud Grassim Oskolkoff #S. Position, set up, install plumbing and get power to all camp trailers. Install communications for the job site. Epoch persannel Craig Silva, John Lundy and Steve Forrest travel from Anchorage to Kenai on ~/7D/2007. 1H1/2007: Continue rig up of all Glacier No_1 rig modules and rig components. Pre-spud meeting to review all plans for G05. Epoch personnel Jim Carson, Craig Silva, John Lundy and Steve Forrest arrive on location at Glacier No.1. Craig Silva, John Lundy and Jim Carson attend pre-spud meeting for all hands. Craig Silva, John Lundy and Steve Forrest inspect layout of rig and pad, spot Epoch Unit ~lS, run power and Ga~ronics communications to the unit, and begin rig up of the new Rigwatch 8.7 system and the new Vega sonic pit probes while unit warms up. 1/12/2047: Continue ng up of ail Glacier No.1 rig modules and rig components. Continue Epoch rig up the Rigwatch 8.7 system, the new sonic pit probes, the gas system, all unit computers and intemal equipment, the outside work stations, the wireless network to camp and the Starband Satellite system. • 1/13/2807: Continue rig up of all Glacier No.1 rig modules and rig components. Continue Epach rig up, calibration and "fine tuning" of the Rigwatch 8.7 system, the new sonic pit probes, the gas system, all unit computers and irrtemal equipment, the outside work stations, the wireless network to camp and the Starband Satellite system. 1/14/2007: Continuing rig up operations. Accept rig. Set up and nipple up diverter, knife valve and choke and kill Ilines. Lubricate, charge, roll and test run a!I three mud pumps. Continue nipple up of diverter system, drilling nipple, flowline, trip tank and fill-up lines. {nstall diverter line. Hook up gas alarms. Complete mi~cing spud mud. Rig up wind walls on boarci_ Thaw out and repair trip tank lines. Rig floor drain. Repair and adjust crown-o-matic. Rig up, condition, audit and inspect mast, tugger lines, pins and keepers, mud lines and water lines. Function test aH safety contrals and shut dcmms. Epach completes rig up of all its logging and communication systems. Unit #6 is organized and prepared to prior to lagging. Craig Sitva caGbrates the gas sys#em before the drilling commenees. 1/15/2007: Calibrate gas alarms. Test diverter and accumulator, Repair and reset crown-o-matic_ Repair elevator and Gose button_ Rig up to pick up 5" drill pipe. Pick up, drift, make up, stand back and strap 5" drill pipe (1586' total, SO joints). Thaw water lines. Lay out, strap, drift, pick up and make up short bottom hole assembly {with shock sub). Run in conductor and tag at 37'. Clean out conductor from 37' fo 81'. Spud wefl and drill ahead from 81' to 344'. Circulate out and pull out of hole. Lay down shock sub. Blow down mud iines. Pick up and make directional k~attam hole assembly (mudmatar, short NMDC, crossover subs, NM CSDPs, shock sub, MWD). Orient MWD tools. Run in hole to 344' and test MV1tD tool. Drill from 344' to 391'. 1/16/2007: Drill {rotating and sliding} from 391' to 840'. Lose rig power. Traubleshoot generators. Drill ~ (ratating and stiding) from 840' to 1808'. ~~ EP(~~H '~ M MARATH~N QIL CQMPANY Grassim askolkoff #5 ~ 1/17/2007: Drill (rotating and sliding) from 1808' to 2265'. Circulate bottoms up. Pump dry job. Puli out of hole. Lay down shock sub. Stand back CSDPs. Lay down MWD toals. Glean and grade bit. Clean rig floor. Service rig and Topdrive. Change out switch for Topdrive. Pick up, make up and run in MWD tools. Run in CSDPs. Continue running in hole to bottom (2265~. Circulate bottoms up. Mix and pump around Hi-Vis sweep. Circulate hole clean. Pull out of hole. Lay down directional toois {CSDPs, short NMDC, MWD collar, stabilizer, cross-overs, motor, bit). Rig down and lay down drill pipe handling tools. C(ear and clean rig floor. Biow down mud lines. Clean ceflar. 1/18/2007: Change out bails, elevators, s~ub post and tongs. Rig up floor and Weatherford casing running tools. Hold pre job meeting on cementing procedures and safety. Make up, run in and test {4QIb, L-80~ 9 5/8" shoe tract. Continue running in 9 5/8" casing and set shoe at 2264'. (Float collar at 2222'j. Rig down and toad off Weatherford equipment. Rig up BJ cementing head and cement lines. Circulate bottoms up and continue to arculate, condition and dean mud. (1 1/2 bottoms up total}. Record 46 units of trip gas. Pump 40 bbls of mud ctean (with red dye added) with rig pumps. Drop bottom plug. Switch over to BJ pumping unit. Pump 2 b~s of water and test lines to 3000psi. Batch up cement. Pump 232 bbls of 12.Oppg cement slurry. (532 sacks Type 1 cement with acceleratbr chemicals to 131 bbls water for 10.339 gaVsack yield). Drop wiper plug with 2 bbls of water to confirm. Displace (at 320ps~ with 166 bbls of (9.2ppg) mud. Bump plug with overpressure {1032psi total). Pump total of 170 bbls {4 bbls over calculated displacemerrt). Note 16 bbls of lost circulation as cement tumed comer. BJ tempararily increased pump rate to 8.5bpm, then reduced rate to 3.5bpm while reapracating, and arculation returned without further losses. Cement was retumed to the surface, and 90 bbls excess cement was pumped into cellar. Note BJ flow meter stopp~ o~rating during latter part of displacement and pumps only a~e fo displace from 4.5bpm to 1.2bpm for last 30 minutes. Hold for 5 minutes after plug bumped. Floats held. Cement in place. Begin wait on cement. Flush stack and mud lines. Rig down cementing head. Blow down mud lines. Clear and dean rig floor. Begin hauling off mud. Nippfe down diverter line. C{ean cel{ar. Remove knife valve. Pull and load aff mouse hale. Rig down fitt, bleed and trip tank lines. Nipple down and move aside flow line extension. Fiu throttle solenoid and haur meter an #2 mud pump. Mal~e ~ rough cut on 9 5/8" casing and lay down cut section. Remove betl nipple. Change out flow line e~ctensions. Nipple down diverter stack and set in rack and load off. Spot new BOP stack. Begin cleaning pits. Remove starting head. 1/19/2007: Raugh cut 20" canductor. Goad cement to top of 20". Rough cut 9 5/8" casing. Dress 9 5/8" cut. Stage BOP stack with crane. Set and install 9 5/8" slip lock connection with 11" (5M) flanged multibowl wellhead. We(Ihead woutd not adjust smoothfy at contact pants. Pu!! off wellhead and observe cut o-ring caused by burr on 9 5/8". Redress 9 5/8" casing and change out aring. Reinstall wellhead without problems. Successfully test slip-lock seal to 2500psi for 14 minutes. Finish cleaning pits and begin mixing newr mud. Nipple up BOPs, DSA and HCR. Install DSA for mud cross and then inside kill valve. Change out bails. Nipple up outside kilt and '90'. Nipple up check valve, kill line hose, bell nipple, riser, flowline e~ckension and then choke, fill-up, trip tank and bleeder lines. Nipple up accumulator hose. Continue mi~ang new mud. Rig up efevators and rig tong5. Pick up, set up and install test equi~xner~t and test joint. Function test BOPs. Change fitting on lower pipe rams. PerForm shell test to observe for leaks. Fix leak at choke line connection. Fix sensor on chart ~;corder. Begin testing of all BOPE. Test annular to 250psi low / 2500psi high. Observe leaking door seal on single gate. Change out door seai. (Observe bad thread). Tighten DSA to single gate flange. Continue testing all BOPE to 250psi low / 2504psi high. (Successively test annular, upper pipe rams, upper and lower kelly cock, dart and floor valves, inside and outside kill valves, check valve, HCR, manual choke and lower pipe rams while also testing CMVs 9 ,2,5,6,7,8,9,1 ~,11,12). ~~ ~~ EPOCH ~ 9 M MARATH4N OIL CQMPANY Grassim C)skolkoff #a ~ 1/20/2007: Continue testing BOPE to 250psi Low / 2500psi High. {Finish testing lower pipe rams, then test blind ram and CMVs 3,4). Do accumulator perforrnance test. Pull test plug and rig down testing equipment. Install wear ring. Blow down choke manifold. Dnft, pick up, make up, run in, pull out and stand back 5" drill pipe. Pick up, make up and run in hole new directional bottom hole assembly. Fill pipe. Test MWD tools. Blow down equipment. Service (lubricate} rig. Inspect rig and do safety Gean up. Pick up, make up, drift, run in, pull out and stand back (34 joiMs, 17 stands) of 5" drill pipe. Rack and tally 44 joirrts of 5" drill pipe_ Pick up, drift, make up and run in hole to 2057'. Circulate bottoms up. Test 9 5/8" casing to 2500psi for 30 minutes. Tag cement at 222a'. Drill out float equipment and continue drilling out remaining shoe track to 2265'. Drill 20' of new hole from 2265' to 2285'. Circulate bottoms up. Clean pill pit. Make and pump spacer. Displace hole with new 9.1ppg FlaPro Mud. Run two consecutive Formation Integrity Tests to 17.3 EMW (9.1 ppg, 820psi, 192Utvd). Drill (rotating and sliding) from 2285' to 2499'. 1/21/2007: Oirill (rotating and sliding) from 2499' to 3761'. (Pump sweep at 3690~. Circulate bottoms up and circulate hole clean. Pull out of hole on wiper trip to shoe. ~Pulled tight at 3d38', 2775', 2659'). Service rig and Topdrive. Clean rig floor. Change out bad turbo-charger on #2 carrier. Clean cellar and trip tank. Run back in hole to 3699'. Wash down from 3699' to 3761'. Drill (rotating and sliding} from 3761' to 4269'. 1/ZZf2807: DriH (rotating and sliding} from 4269'to 5213'. Circulate bottoms up. Circulate hole ctean. Check for flow. Pump dry job. Pull out of hols on wiper trip to 3636'. Backream at 4810, 4356', 4315', 3938', 38Q5' while pulling out. Run in hole to 5151'_ Wash down from 5151' to 5213'. Drill (rotating and sliding} from 5213' to 5594'. 1/23/2007: Drill (rotating and sliding) from 5594` to 6736'. Circuiate bottoms up. Pump around Hi-Vis sweep. Circulate hole clean. Check far flaw. Pull out of hote on wiper trip to shoe. ~ 1/24/2007: Continue pulling out of hole {from 5596' to 2243~ on wiper trip to shoe. (Pulled tight and wiped back through at 5575' to 5550', 5390', 3861', 3155' ). Lubricate rig {Topdrive, crown, blocks, drivelines). Run back in hole from 2243' to 6668'. Wash down from 6668' to 6736' with no flll. Tag and drill (rotating) from 6736' to 6744'. Circulate bo#toms up. Pump around Hi-Sweep. Clean and condition mud. Check for flow. Drop 2 7/8" rabbit. Pump dry job_ Pull out of hote from 8744' to 133' {SLM}. Pull out af hole laying down directionaf BHA (crossavers, NM CSDPs, MWD colfar, stabilizer, short NMDC, mudmotor, bit}. Clean and grade t~t. Clean rig floor. Blow dawn mud lines. Hold pre job meeting on making up shuttle Ic~gging system. Pidc up and make up reamer, CLS, stabilizer, 31/2" drill pipe and lower latch. Pick up and make up Weatherford Quad-Combo logging tools, upper latch and float. Install, seat and latch up logging assembly. Run logging assembly on 5" HWDP in hole to 915'. (Drift 3 stands of HWDP}. Perform pressure check on tool assembly (185psi at 2 bblslmin, 419psi at 4 bblsJmin, 923psi at 6 bbl~min}. Run in hole to 2235'. Perfarm pressure check on too! assembiy (224psi af 2 bblslcnin, 525psi at 4 bbls/min, 1000psi at 6 bbls/min). Blow down mud lines. ~ ~ EPOCH 20 M MARATHQN QIL GC?MRANY Grassim C?skolkczff ~#~ ~ 1/25/2007: Continue running in hole with shuttle logging assembly on 5" drill pipe from 2239' to 4009'. Pertorm pressure check on tool assembly (263psi at 2 bbls/min, 573psi at 4 bbls/min, 1024psi at 6 bbls/min}. Continue running in hole to 6534'. Perform pressure check on tool assembly (330psi at 2 bblsJmin, 661 psi at 4 bbls/min, 1041 psi at 6 bbls/min). Continue running in hole to 6739'. Wash down through 5' of fill from 6739' to 6744'. Circulate bottoms up. Pump around HI-Us sweep. Record 28 units of trip gas. Circulate hole clean. Stop circulating and pull out of the hole from 6744' to 6596' (to allow space for tool deployment below base of 3 1/2" drill pipe). Drop and pump down Messenger. Engage, push out and deploy shuttle logging toots to 6697'. Pressure up untif the seating plug is sheared. Check for flow. Pump dry job. Pull out of hole (at 30' per minute) logging up with shuttle deploys~l Quad-Combo tools from 6697' to surface. Stand back 5" HWUP while pulling out to 308'. Break and lay down 31/2" drill pipe. Remove neutron sources. Break, lay down and load off Weatherford Logging Service logging tools. Break and load off running equipment (upper and lower latches, float, CLS, stabilizer, reamer}. Clear rig floor. Pull wear bushing. Wash up and dean rig floor. Pickup and dumrny run landing joint. Clean cellar. Stage 7" rams and ready taols for change out. Change pipe rams to 7" and test to 250psi Low 12540psi High. F~ig up stabbing board. Change out saver sub and grabber dies. Fix broken bo(t on die keeper. Adjust torque tube. Change bails and elevators. Rig down rig pipe tongs. Rig up Weatherford tongs, slips and elevators. Rig up fill-up hose. Stage centralizers. Hold pre-job meeting on procedures and safety for running casing. Run in hole with 7" casing as per Marathon program. Pick up, make up and run in shoe jaint, second jaint and flaat collac Check float equipment. 1/26/2007: Fi~ish checking float +equipment. Continue running in h~le with 7" casing to 2440'. Change out elevators. Rig up Lafleur fill-up tool. Continue running in hole with 7" casing. Rig up cemerrting lines while running in hole. Pick up landing joint. Land 7" casing on hangar at 6730' (shoe). Rig down WeatherFord casing running equipment. Install BJ cementing head with top and bottom p(ugs pre- instalted. Circulate and condition mud for 1 1/2 circulations tatal (at 140spm, 800psi, 270g~xn). Record 22 units of trip gas. Hold pre-job meeting on procedures and sa€ety for cement jab. Transfer mud fram pit to Hanson Tank. Switch to BJ pumping unit. Pump 5 bbls af water ahead to fill cementing lines. Test ~ lines to 3500psi. Mix and pump 33 bbls of 10.Oppg MCS-4 spacer. Drop first (bottom) plug. Batch up and pump 113.61 bbls of 12.5ppg cement lead slurry {with 258 sacks of Class G cemerrt to 84.74 bbls mix water plus chemical additives for 2.47 cu ft/sack yield) and then pump 33.25 bbls of 15.8ppg cement tail slurry (with 180 sacks Class G cemerrt to 19.01 bbls mix water plus chemical additives for 1.17 cu ft/sack yield). Finish pumping cement. Drap second (top) plug. Pump 5 bbls water ta kick out plug. Switch over to rig pumps_ Displace cemerrt writh 247 b~s of mud. Total displacemerrt is 254.03 bbls. Pump at slower rate after 23Q bbls away. Bump plug with 1000psi over displacement pressure. Bleed off. Check floats. Cement in place. There was no lost circulation and appro~amately 20 bbls of spacer observed at surtace. Treat retum pit with citric acid. Wait on cement. Lay down landing joint. Blow down, rig down and lay down cementing head and cementing lines. Clear rig floor. Install pack-off and begin pressure test. Test failed to pressure up. Pull pack-off and fuc leaking seal. Reinstall packoff and successfully test to 5000psi far 10 minutes. Rig down stabbing board_ Adjust torque tube. Change out bails. Instafl elevators, pipe tongs and spinners. Clear and clean rig floor. Rig up and prepare for laying down 5" drill pipe from derrick. Start cleaning pits. Begin laying down 5" drill {~pe. 1/27/2007: Continue laying down 5" drill pipe. Finish cleaning pits and begin mixing new FlaPro mud. Change out upper pipe rams from 7" to 2 7/8" by 5 1/2" variable. Change out lower pipe rams from 5" to 4". Pull wear bushing. Rig up test equipment. lnstall test jaint. Test at! BOPE to 254psi Low / 2500psi High {annular, upper and lower pipe rams, blind rams, inside and outside kill valves, check valve, manual choke, floor valve, dart valve, upper and lower Topdrnre IBOPs and CMVs 1-12). Remove piece of inetal in lower pipe rams and retest. Do accumulator performance test. Remove test joint. Rig down test equipment. lnstall wear bushing. Test 9 518" casing to 2500psi for 30 minutes. Rig up floor and make preparations for picking up 4" drill pipe. Hold pre job meeting on safety and procedures far picking up drill pipe. Pick up, drift, make up and run in hole 120 joints of 4" drill pi~. Pull out hole standing back 4" drill pipe. ~ ~~ EPOCH 2~ M MARATHQN QIL CC?MPANY Grassim C~skolkoff #5 ~ 1/28/2007: Finish pulling out of the hole standing back 4" drill pipe. Pick up, make up, or~ent and run in hole directional bottom hole assembly (to 130'). Troubleshaot Topdriv~ robatics (elevators were opening and closing erratically}. Solve Topdrive robotic problem. Continue picking up and running in hole with bottom hole assembly to 256'. Pick up, make up, drift and run in hole jars and HWDP. Do shallow test of MWD tool. Pick up, make up, drift and run in hole 4" drill pipe to 2444'. Rack and tally additional loads of 4" drill pipe. Continue to pick up, make up, drift and run in hole with 4" drill pipe to 4147'. Rack and tally remaining loads af 4" drill pipe. Continue to pick up, make up, drift and run in hole with 4" drill pipe and tag up on float at 6655'. Drill out float collar and remaining shoe tract (cement, shoe, rathole) from 6655' to 6744'. Dri1120' of new hole from 6744' to 6764'_ Circulate bottoms up. Pertorm Leak Off Test (with 9.7ppg mud) to 18.4ppg ENMI {maximum at break over). Pressure held at 16.1 E(1A1N after 10 minutes. 1t29/2007: Mix spacer. Prepare to displace mud. Pump spacer ahead. Drill from 6764' to 6793', displacing old Flo-Pro mud writh new 9.1 ppg FlaPro m~ on the fly. Continue to drili (rotating and sliding) from 6793` to 7329'. 1l30/2007: Drill (rotating and sliding) from 7329' to 8243'. 1/31/2007: DriO (rotating and sliding) from 8243' to 8617'. Circulate bottoms up. Monitor well. Pump dry job. Pull out of hole to 7" shoe (6700~ on wiper trip. Service rig (lube camer, Topdrive, block and crown). Run back in hole to 8550'. Wash down from 8550` to 8617'. Drill (rotating) from 8617' to 864Q'. Z/01/2007: Drill (rotating) from 8640' to 9373'. Circulate bottoms up. Pull out of hole. 2/02/2007: Pull out of hole to shoe. Do 5 minute flow check. Continue pulling out of hols. Inspect bit and other directional tools. Break and lay down directional tools (bit, RWD, mudmotor, 2 lead collars, stabilize~, AAWD collar). Pick up and make up alf new directiona! tools (less 1 tead collar). Orient motor to MWD collar. Note that stand made up with flex collar fell out of the elevators while preparing to run in. ~ Investigate incident. Repair and correct problem. Run bottom hole assembly in hole to first skand of drill pipe. Attempt surface test of MWD. Observe swivel wash pipe leaking. Change out wash pipe. Surface test MWD tools. Continue running in hole to 6700'. (Stop and fill pipe on way in at 4515' and 6700~. Hold pre job meeting on cut and slip procedures. Cut and slip drill line. Hang block and Topdrive. Change over brake hands and control line to carrier. Remove hydraulic pump from electric motor on carrier. Troubleshoot hydraulics on #2 carrier motor. Work on man rider controls. Service camer, Topdrive, blodc and crown. Continue running in hole from 6700' to 9270'. Wash and ream from 9270' to 9273'. Drill (rotating and sliding) from 9273' to 9285'. 2/03/2007: Drill (sliding and ratating} from 9385' to 9490'_ Reinstall the drive line for the hydraulic pump of the #2 carrier engine. Dri!! (rotating} from 949t~' ta 9875'. 2/04/2007: Drill (rotating) from 9875' to 10384'_ (Total Depth of well). Circulate bottoms up. Pump sweep around. Circulate hole clean. Monitor well. Pump dry job. Pull out of hole from 10384' to 9114' on wiper trip. Run back in hole to 10384'. Circulate bottoms ups. (Record 81 units of wiper gas). Circulate hole clean and condition mud. Monitor well. Pump dry job. Pull out of hole (to 9300'}. Z/05/2007: Continue pulling out of hole SLM (from 93~~. Break, lay down and load off all directional tools. Hold pre-job meeting on procedures and safety for wireline Icx,~ging. Rig up Weatherford ~reline Service. Pidc up and make up Quad-Combo wireline logging assembly. Load saurces. Run logging assembly in hole and hit bridge at 8665'. Una~e to work past bridge. Log up from 8665' to 6200'. Pull out of hole with wireline assembly. Unload sources. Lay down wireline logging tools. Hold pre-job meeting on procedures and safety for handling Weatherford's shuttle lagging system. Load, pick up and make up reamer, CLS, stabilizer, 5 joints of 3'/2" " drill pipe and lower latch. Pick up and make up inner string of Weatherford's Qued-Com~ logging tools, upper fatch and float. Install, seat and latch up logging assembly in 3'/zA drill pipe. Run shuttle logging assembly on 5" HUVDP in hole to 826'. Flow ~ check tool assembly . Corrtinue running shuttle in hote on 5" drill pipe to 4d42'. Flow check tool assembly. Continue running shuttle in hole ta 4990'. ~~ EPOCH 22 M MARATHON QIL COMPANY Grassim Qskolkoff #5 ~ 2/06/2007: Continue running shuttle in hole on 5" drill pipe from 4990' to 7036'. Flow check tool assembly. Continue running shuttle in hole from 7036'. Break circulatian, wash, ream and rotate through bridges tagged at 9712' and 10218' while continuing to run in. Tag bottom at 10384'. Circulate bottoms up and continue circulating to clean and condition mud and hole. Record 410 units of trip gas. Pull up hole to 10247'. Drop and pump down Messenger dart to engage, release, push out and deploy shuttie logging tools. When pressuring up to shear the seating plug, the tool string appeared to start deployment, but there was no quick reduction of pressure to indicate that shear out had occurred. lnstead, the pressures continued increasing to over 4040psi before the pumps were shut down and the string pressure was bled back. Pull up 1 more stand. Begin pumping to attempt shear out, but the pressure increased to over 4200psi almost immediately and would not release. Stop pumping and bleed off pressure. Check for flow. Shuttle tool depth set at 10348' (if there was full deployment). Pull out of hole (at 30' per minute) logging up with Quad-Combo logging tools from 10348' to 5872'. Pull out of hole at normal rate from 5872' to 5147'. Drop 2" rabbit on wire. Continue pulling to out of hole to top of bottom hole assembly at 858'. Pull and stand back 4" HWDP and encounter rabbit 1 stand above jars at 393'. Pull rabbit and begin pulling and checking each joint of HWDP, jars and 3'/2" drill pipe as it is pulled until the top of togging tools is found. Logging assembly had sheared and partially deployed downward, but lodged in the string stabilizer and never made it past the CLS and reamer. Rig up the hang off ptate for the logging tools. Begin to strip out logging tools from 3'/2" drill pipe. Remove radioactive sources. Break and lay down enough tools and 3%2' drill pipe to pull the remaining drill pipe aut of the hole, cover the wel! at the rotary table and break down the remaining tools above the rig floor. Continue to strip out, break and lay down the logging tools and tast componerrts of pipe assembly. Break and lay down reamer and then lay down string stabilizer with 12' section of the induction logging tools stuck in it. Blow down mud line and Gean up rig floor. 2107/2007: Service rig. Prepare logging tools. Hold pre Job meeting on procedures and safety for handling Weatherford L~ging Services' shuttle lagging system_ Pick up and make up reamer, CLS, 5 joirrts of 3%2° drit! pipe and lower latch. Pick up and make up inner string of WLS Quad-Combo logging ~ tools, upper latch and float. Install, seat and latch up logging assembly inside 3'/2" drill pipe. Run shuttle logging assembly on 5" HWDP in hole ta 858'. Continue running shuttle in hole on 5" drill pi~, stopping ta flow test tool assembly at 1040', 4069', 7031' and 999Q' on way in. Run shuttle in hole and tag bridge at 10300'. Make up Topdrive and wash to bottom at 10384'. Circulate bottom up and continue to circulate hole dean and condition mud before logging pass. Record 284 units of trip gas_ Pull up hole to 10243'. Drop and pump down AAessenger dart to engage assembly. Pressure up until the seating piug is sheared and inner string released. Push out and deploy shuttle logging assembly to 10344'. Check for flow. Pump dry job. Pull out of hole at controtled rate of 30' per minute logging up with Quad-Combo from 10344' to 5874'. Pull out of hole at normal rate from 5874' to surface. Stand bactc 4" HWDP and jars while pulling out. Break and lay down 3'h" driN pipe. Remove neutron sources. Break, lay down and load off Weatherford Logging Service fagging tools. Break and load off running equipment (upper and lawer latches, flaat, CLS, reamer). Clear rig flqor. Prepare to rig up and run wireline tog. 2/08/2007: Finish laying down shuttle logging tools. Hold pr+e-job meeting with Weatherford Wireline Service on safety and procedures for handling wireline tools. Rig up WWS. Pick up and make up wireline MFT logging assembly. Run MFT tool in hole ta shoe and wait on selection of pressure points. Receive selections and continue running in hole with MFT tool. Tag bridge with MFT assembly at 8370'. Unable to get past bridge after 15 attempts to break through. Pull MFT tool up to 7784'. La~ upward, doing 32 pressure tests from 7784' to 6799'. Finish testing and pull logging assembly out of hoie. Lay down logging tools. Rig down 1MNS. Refabricate carrier floor for plumt~ng new electric hydraulic pump. Fix leak on #1 Denison. Replace ball valve in gun lines in pit. Pick up and make mill tooth bit and bit sub to 4" HWDP (plus jars) for Gean out run. Run dean out assembly in hole to 3385'. Fill pipe (at ZOOspm, 555psi). Continue running in hole to 6700' (near shoe). Fill pi~ (at 200spm, 900psi). Hold pre job meeting on procedures and safety for sfipping drill line. Slip drifl line from 21 wraps to 26 wraps. Cantinue running in hole with clean out assembly to 8455' and start taking weigh#_ Wash dawn from 8455' to 8488'. Continue running in hole from 8488' to 9181'. ~ ~~ EPOCH 23 M MARATHON QIL COMPANY Grassim QskQlkoff #5 ~ 2/09/2007: Continue running in hole from 9181'with ciean out assembly and tag bridge at 10225'. Wash through bridge. Continue running in hole ta 1 Q354'. Wash from 1 Q354' ta bottom at 103&4'. Circulate bottoms up. Record 232 units of trip gas. Pump sweep around_ Continue circulate, Gean and condition hole. Check for flow. Pump dry job. Pull out of hole with clean out assembly standing back 147 stands. Gontinue pulling out of hoie laying down remaining 4" drill pipe, 4° HWDP, jars, bit sub and bit. Pull wrear ring (9" !D). Set hanger with landing joint. Test 2%$" by 5'/z° rams ta 250psi Low / 2500psi High. Pull hanger and ianding joint. Set wear ring. Clear rig floor and set up Weatherfiord for running 4'h" liner. Change links and elevatars. Switch out fi!1-up line. Troubleshoot Weatherford power unit. Hold pre job meeting on safety procedures for running liner. Run in hole with 4'/z° liner as per Marathon program. Pick up and make up shoe joints and run in hole. Continue running in hole with 4'/2 " liner. 2/10/2007: Continue running in hole with 4'h" liner to 3844' as per Marathon program. Change bails and install elevators. Pick up 5" by 7" flex lock hanger. Break circulatian and arculate liner volume. Run in hoEe with liner assembly to 6655', fitfing every stand with the fill-up hose. Pickup, torque up and then lay down cementing head. Ci~ulate bottoms up and continue to circulate a~d condition at 6655'. Continue running liner assembly from 6655' to 7343'. Break arculation and briefly arculate at 7343'. Continue running in hole with liner assembly. Tag bridge at 7690'. Wash and ream from 7690' to 7723'. Continue running in hole from 7723' to 8919'. Break circulation and briefly circulate at 8919'. Continue running liner in hole from 8919' to 9520'. Circulate bottoms up at 9520'. Continue running liner in hole from 9520' to 103Q5'. Break circulation and wash down from 10305' to 10366'. Affempt to wark tiner to bottam at 10366', but hole packing off (apparently due to coal in the well bore). While working pipe and circulating to wash the well bore ahead of the liner, the hanger is prematurely set at 10331'. Circulate at varying pump rates #o find and establish enough flow to perform a cemeM job. A11 attempts to establish a su~cient flow rate are unsuccessful. Return flow rates are very inconsistent due to packing-off problems. Pult finer up the hale from 10331' to 10305' (with 40K overpull and pick-up weight of 190F(}. Hold pre job meeting on safety and procedures for pulling 4'/2' liner. Mix and pump dry job. Blow down mud pumps and lines. • 2/11/2007: Pull aut of hole standing back 4" drill pipe to 9477'. Repair eledric cable for derrick lights. Continue pulling and standing back 4" drill pipe out of hole to 3874'. Break off and lay down hanger. Change bails and prepare rig far laying down liner. Rig up power tongs. Pull out of hole from 3844' laying down 41/2" liner. Rig dawn Weathertord's finer running taols. Change links and elevators. Clear rig floor. Rig up to pick up clean out assembly. Strap, pick up and run in hole bottom hole assembly to 531' for clean out run. Rabbit, pidc up aff cafinralk, make up and run in 67 joints of 4" drill pipe to 2642'. 2/12/2007: Continue to rabbit, pick up off catwalk, make up and run in hole joirrts of 4" drill pipe to 3680'. Run in hole with stands of 4" drill pipe in derrick from 3680' to 6710' (just inside 7" shoe). Circulate bottoms up and briefly continue circu{ating and conditioning (at 210spm/263gpm, 260spm/326gpm). Record 542 units of trip gas at 6710'. Corrtinue running in hole with 4" drill pipe to 10235'. Wash down from 10235' ta bottom at 10384'. Circulate bottoms up. Record 602 units of trip gas. Mix and pump around Hi-Vis sweep. Corrtinue to circulate, dean and condition mud. Check for flow. Pump dry job. Pull out of hole from 10384' to 6707' on wiper trip to shoe. Monitor well. Allow hole to stabilize for 3 hours. Run back in hole from 6707' and tag tight spot at 10119'. Pump, rotate, ream and wash from 1011 S' to 10167`. Continue running in hofe to battom at 10384'. Circulate bottams up (while rotating). Record 57 units of wiper gas. Without rotating, circulate 2nd bottoms up and briefly continue to arculate, clean and condition mud. Mix 11.5ppg Hi-Vis weighted pill and pump and spot on bottom. Let pill staticalfy balance before pul~ing out of ho1e. ~ €~ EPOCH 24 M MARATHQN OIL GQMPANY Grassim Qskolkoff #5 • 2/13/2007: Pull slowiy out of hole from 1 ~384' to 9980'. Check for flow. Pump dry job. Continue puiling out of hoi~ from 9980' ta 531'. (Puiled tight at 7655'). Pull out of h~le laying down 4" HWDP and remaining bottom hole assembly (jars, drill collars, stabilizers, bit sub and bit). Change out bails and elevators. Rig down pipe spinner. Rig up fill-up hose. Rig up Weatherford liner running tools. Set Weatherford stage centralizers on rig floor. Hold pre job meeting on safety and procedures for running liner. Run 4 1/2" liner as per Marathon program. Pick up and make up shoe track and check floats. Run 41/2" liner to 3565'. Change out bails and elevatars. Pick up, maKe up and run in 5" x 7" Flexlock hanger. Girculate while rigging down Weatherford. Continue running in hole with 4" drill pipe from 3587' to 6680' (just inside shoe). Circulate bottoms up. Record 26 units of shoe gas. Continue running 4" drill pipe in hole to 7059'. 2/14/2007: Continue running 4 1/2" liner assembly in hole on 4" drill pipe from 7059' to 10033' (filling every stand with the fifl-up hose). Break circulation and wash down from 10033' to 10096'. Continue to circulate while reciprocafing. Unable to rotate after several successive attempts. Circulate 6611 strokes total at 90-140spm while trying to rotate, but higher rates causing packoffs. Pickup single and make a connection. Wash from 100~' to 1010d'. Continue to circula#e and reaprocate liner, but still unable to rotate and still packing off at higher pump rates. Remaining arculation before cementing at 105gpm, 85spm, 565psi without pack-offs. Circulate bottoms up at 10100'. Record 134 units of trip gas. Continue to arculate, reciprocate and condition hale. Hold pre-job meeting with BJ on procedures and cementing for 1st stage of cementing. Pickup, torque up and rig up cementing head. Begin batch mixing cement and continuing to circulate with rig pumps until 2 pods of cemerrt are mixed to correct weight. Switch to BJ pumping unit. Pump 3 bbls water and fill cement lines. Test lines to 5000psi. Mbc and pump 17.9 bbls of 10.Oppg MCS4 sweep, followed by 76.4 bbls of 10.5ppg cement slurry (145 sacks Class G cement to 42.26 bbls of mix water plus chemicals). Close valve to dritl pipe. Pump 9.3 bbls of water to Gean lines. Close valve. Drop ptug. Pump 28.3 b~s of KCL brine and 98.8 b~s of mud. Displace at 2.5 bpm, slowing ta 1.0 bpm for plug to pass stage coDar at 65.1 bbls. Bump p{ug with 744psi increasing to 1644psi. Bleed off. Float held. Cemerrt in place. 100 percent retums. Pressure up to release hanger to ~ 1998psi. Slack off to 62K. Hanger not set. Pick up 5'. Pressure up to 2457psi. Set dawn to 3QK. Confirm hanger set at 10100'. Pressure up to 2911 psi to open up stage callar DV tool. Pressure dropped to 815psi and establish circulation through stage collar at 8423'. Circulate through stage collar (at 2.5bpm, 950psi). Pressure increased to 1300psi. Slow pump rafe to 1.5bpm, 1200psi. (V11e11 was packing off at 2.4b~n}. Continue circulating ~tween 1.5 and 2.4 bpm. At 5750 strokes MCS4 spacer and estimated 10-15 bbls of cemerrt retumed to surface. Circulate and condition mud at 1.5-2.3 bpm at 1100-1300psi #hrough stage collar and wait on cemerrt. Eventually increase pump rate to 3 bpm at 1050psi. Rig down BOT cementing head. Rig up BOT plug dropping cementing head. Hold pre job meeting on procedures and safety for 2nd stage of cementing. Continue circulating and batch mix 2 pods af cement s{urry. Tum ng pumps over to BJ pumping unit. Pump 3.8 bbls of water into lines and test to 4920psi. Pump 22.3 bbls of 10.Oppg MCS4 sweep, followed by 76.Obbls of 10.5ppg cement slurry {132 sacks Class G c~merrt to 42.04 bbls of mix water plus chemicals). Drop plug. Disptace with 29.3 bbls of KGL brine and 77.7 bt~s of 9.5ppg mud. Record maximum 46 units of gas whife displaang. Pump at 2.6- 2.9 bpm, 750-1100psi and slaw to 1.0-1.3 bpm to pass plugs through liner hanger. Pidc up first wiper plug at 65.3 bbls of displacement and second wiper plug at 77.7 bbls of displacement on way to total displacment of 107.0 bbls. After plugs passed hanger the pressure increased to 1142psi. Pump rate increased to 2.1-2.4 bpm at 1247-1500psi. Bump stage tool with 594psi increase from 1202psi to 1796psi. Stage tool closed. Increase pressure to 2317psi and hold for 5 minutes. Confirm stage tool closed. Bleed off pressure. No flow. Switch to rig pumps. Pressure up to 500psi. Pull out of liner hanger and seal assembly. Pump at 240spm, 335gpm, 550psi_ Circulate ~ttoms up. Record 20 units maximum gas. Retum MCS4 spacer and estimated 10bbls of cement to surface. Cement in place. Rig down and lay down cementing head. Pump drill pipe wiper dart. Circulate drill pipe votume. Record 3 units maximum gas. Pump dry job. Pult out of hole with 4" drill pipe from 6516' to 3340'_ Cut 146' and slip 114' of drill line. Hold procedure meeting and set up for laying down drill pipe. Lay down 4° drill pipe from 3340' to 2900'. ~ ~~ EPOCH 25 M MARATH~N OIL COMPANY Grassim Oskolkoff #5 • 2/15/2007: Pull out of hole from 2900' to surface laying down 4" drill pipe. Lay down setting tools. Service rig and Tapdrive. Grease crown. Pick up and make up mi{I and crassover. Run mi{I in hole on 4" drill pipe to 6516'. Polish tie-back sleeve from 6516' to 6522'. Circulate bottoms up. Pull 4" drill pipe out of hole and lay down mill. Pick up ZXP packer with hydraulic pusher tool and run in hole on 4" drill pipe. Tag top of liner at 6516.76' and stab iMo polish bore receptacle. Drop ball. Attempt to set packer, but would not set. Test surFace equipment. No problems with surface equipment. Drop second ball and set packer. Rig up and test annulus to 1500psi for 30 minutes. Blow down surface equipment. Pull out of ho{e wet, laying down 4" drill pipe from 6516' to 5399'. 2/16/2007: Pull out af hole from 5399' to surface laying down 4" drill pipe. Break down and lay down setting tool. Lay down iast stand of 4~ drill pipe in derrick. Clear and clean rig floor. Pull wear bushing. Rig down rig tongs and pipe spinner. Change bails and elevators. ~ay down and laad off pipe handting tools and subs. Rig up Weatherford to run 4'/2 ~ tubing. Hold pre job meeting on procedures and safety for running tubing. Pick up and make up seal assembfy to 4%2 a tubing. Run 4'/2 ~ tubing in hole as per Marathon's pragram to 4080'. Rig up Pollard Oilfiefd Seroiee to da banding of control line. Hang sheave for running chemical injection line. Make up injedion nipple and attach line. Continue running in 4'/2 " tubing from 4080' to 6516'. Tag #op of liner_ Record up weight and down weight_ Space out. Change out tubing hanger. Rig down Pollard banding equipmerrt. Rig down and load off Weathertord hydraulic tongs, power slips and other tubing-casing handling equipment and taols. Cut and tie off chemical injection line. Rig down and lay down sheave for running chemical injection fine and spool back unused line. Load remaining equi~nent off of rig floor. Ctean pilt p~t. Build Safe Clean spacer. Pump 401ead bbls of water, followed by 45 bbls of Safe Clean spacer, and then displace well with 6°k KCL brir~e. 2/17l2007: Sting into seal bore. Land out and set hanger. Test hanger body seals to 5000psi for 10 minutes. Test contact seal at 7" casing to 4'h ~ tubing to 1000psi for 30 minutes. Ftush all surface equipment (mud pumps 1-2-3, choke manifofd, stack, choke and kill lines, cementing lines, Topdrive, poorboy, stand pipe manifold and lirtes ta pits}. Begin cleaning pits and sump. Set Bfowout Prevention ~ Valve. Rig down drip pan, tumbuckles, fill-up line, trip tank line, flowline, and choke and kill lines. Nippte down check and kill valves, spacer spool, BOP stack, and DSA. Load off BOP stack. Clean and inspect gas buster. Prepare and install the tree. Remove BPV. Install 2-way check valve. Test void to 5000psi for 10 minutes. Test free to 5000psi for 10 minutes. Pull 2-way check vabe and reinstall BPV. Begin rig down af a!t Glacier No.1 rig components for move ta Ninilchik State #3 tacation. Craig Silva rigs down the Rigwatch 8.7 system at Glacier No.1, the gas system, all of Epoch Unit #6's computers and internal equipment, the work station in Unit #6, all the camp computers, the wired network to camp, the Starband Satellite system, the on site rig communications and unit power. Unit #6 is organized and secured for moving to the Ninilchik State #3location. • ~~ EPOCH 26 M MARATHON OIL COMPANY Grassim Oskolkoff #5 4.2. SURVEY RECORD Measured Depth ~nclination Azimuth ND Vertical Section Rectangular Coordinate (+) N/S (-} Rectangular Coordinate (+) E/W (-) Closure Closure Azimuth DLS ( ft) de ) ( de ft ft ft ft ft de de /100 ft 0 0.0 292.8 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275 2.9 16.0 274.88 5.78 6.69 1.92 6.96 16,00 1.05 335 3.6 16.5 334.79 8.60 9.95 2.87 10.36 16.09 1.17 396 3.3 14.8 395.68 11.66 13.49 3.86 14.03 15.99 0.52 454 3.0 13.5 453.59 14.37 16.58 4.64 17.22 15.65 0.53 514 2.1 11.0 513.53 16.67 19.18 5.22 19.88 15.22 1.51 575 1.7 4.3 574.49 18.49 21.18 5.50 21.89 14.56 0.75 636 1.9 1.9 635.46 20.28 23.10 5.60 23.77 13.64 0.35 696 2.0 2.2 695.43 22.20 25.14 5.68 25.77 12.73 0.17 759 1.9 1.2 758.39 24.22 27.28 5.74 27.88 11.88 0.17 822 3.3 344.6 821.33 27.02 30.07 5.28 30.53 9.96 2.50 886 6.1 335.7 885.11 32.24 34.95 3.39 35.11 5.54 4.51 949 9.0 334.5 947.55 40.45 42.45 -0.11 42.45 359.85 4.61 1010 12.6 335.8 1007.46 51.80 52.83 -4.89 53.05 354.71 5.91 1074 15.3 338.6 1069.57 67.16 67.06 -10.83 67.93 350.82 4.35 1137 18.1 339.9 1129.91 85.24 83.99 -17.23 85.74 348.41 4.48 1201 21.3 340.0 1190.15 106.79 104.25 -24.63 107.12 346.71 5.00 1264 24.9 338.7 1248.09 131.47 127.37 -33.36 131.67 345.32 5.77 1328 28.1 339.0 1305.36 159.98 154.00 -43.66 160.07 344.17 5.00 1391 30.2 340.1 1360.3$ 190.63 182.76 -54.37 190.67 343.43 3.44 1455 32.2 340.8 1415.12 223.77 214.00 -65.46 223.79 342.99 3.18 1518 34.2 341.0 1467.83 258.25 246.59 -76.74 258.26 342.71 3.18 1582 37.1 341.3 1519.83 295.54 281.89 -88.79 295.55 342.52 4.54 1645 40.1 340.7 1569.06 334.83 319.05 -101.59 334.83 342.34 4.80 1708 43.3 341.1 1616.10 376.72 358.65 -115.30 376.73 342.18 5.10 1772 46.4 340.8 1661.46 421.84 401.31 -130.03 421.85 342.05 4.86 1835 49.2 340.8 1703.78 468.50 445.38 -145.38 468.50 341.92 4.44 1899 52.8 340.8 1744.05 518.21 492.34 -161.73 518.22 341.81 5.63 ~ EPO~H z7 ~ ~ ~ M MARATHON OIL COMPANY Grassim Oskolkoff #5 Measured Depth ~nclination Azimuth ND Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/IN (-) Closure Closure Azimuth DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft) 1962 57.1 340.1 1780.22 569.75 540.93 -179.00 569.77 341.69 6.89 2026 60.9 340.4 1813.18 624.56 592.55 -197.53 624.60 341.56 5.95 2089 64.6 341.5 1842.02 680.55 645.48 -215.80 680.60 341.51 6.07 2153 67.1 342.0 1868.20 738.94 700.94 -234.08 738.99 341.53 3.97 2208 66.8 342.9 1889.74 789.55 749.19 -249.34 789.59 341.59 1.60 2320 66.1 341.5 1934.49 892.21 846.95 -280.72 892.26 341.66 1.31 2383 65.6 341.2 1960.26 949.69 901.41 -299.11 949.74 341.64 0.90 2446 66.5 341.4 1985.84 1007.26 955.95 -317.57 1007.32 341.62 1.46 2510 66.5 341.1 2011.36 1065.94 1011.53 -336.43 1066.01 341.60 0.43 2573 66.1 341.2 2036.68 1123.62 1066.12 -355.07 1123.69 341.58 0.65 2637 66.7 341.5 2062.30 1182.26 1121.69 -373.82 1182.34 341.57 1.03 2700 66.5 341.2 2087.32 1240.07 1176.47 -392.31 1240.16 341.56 0.54 2764 66.2 341.5 2112.99 1298.69 1232.01 -411.06 1298.78 341.55 0.64 2827 66.7 341.5 2138.17 1356.44 1286.78 -429.39 1356.53 341.55 0.79 2890 66.5 341.6 2163.19 1414.25 1341.63 -447.68 1414.35 341.55 0.35 2953 66.1 341.1 2188.51 1471.93 1396.29 -466.13 1472.04 341.54 0.97 3016 66.8 341.4 2213.68 1529.68 1450.97 -484.69 1529.79 341.53 1.19 3079 66.7 341.5 2238.55 1587.56 1505.85 -503.11 1587.67 341.53 0.22 3142 66.5 341.1 2263.57 1645.37 1560.62 -521.65 1645.49 341.52 0.66 3205 66.1 340.6 2288.89 1703.04 1615.11 -540.57 1703.17 341.49 0.97 3268 67.1 341.7 2313.91 1760.84 1669.83 -559.25 1760.99 341.48 2.26 3331 67.7 341.9 2338.12 1819.00 1725.08 -577.41 1819.15 341.49 1.00 3394 67.3 341.9 2362.23 1877.21 1780.40 -595.50 1877.35 341.51 0.63 3457 67.0 341.9 2386.70 1935.26 1835.59 -613.53 1935.41 341.52 0.48 3520 66.7 342.0 2411.46 1993.19 1890.66 -631.48 1993.33 341.53 0.50 3584 86.5 341.6 2436.88 2051.92 1946.46 -649.83 2052.07 341.54 0.65 3646 66.0 341.9 2461.85 2108.67 2000.36 -667.60 2108.82 341.54 0.92 3709 66.6 342.8 2487.18 2166.36 2055.33 -685.09 2166.50 341.57 1.62 3773 68.3 343.1 2511.72 2225.46 2111.83 -702.42 2225.59 341.6Q 2.69 3836 68.0 343.0 2535.17 2283.92 2167.77 -719.46 2284.04 341.64 0.50 3900 67.7 343.2 2559.30 2343.19 2224.48 -736.70 2343.30 341.68 0.55 ~~ EPOC~-I 28 ~ ~ ~ M MARATHON OIL COMPANY Grassim Oskolkoff #5 Measured Depth ~nclination Azimuth ND Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) ENV (-) Closure Closure ,qZimuth DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft) 3963 67.4 342.8 2583.35 2401.41 2280.17 -753.72 2401.51 341.71 0.76 4027 67.1 343.0 2608.10 2460.43 2336.58 -771.07 2460.52 341.74 0.55 4091 66.8 342.8 2633.16 2519.32 2392.86 -788.39 2519.40 341.76 0.55 4154 66.3 343.3 2658.23 2577.11 2448.15 -805.24 2577.18 341.79 1.08 4217 66.0 342.6 2683.71 2634.72 2503.24 -822.13 2634.79 341.82 1.12 4280 65.5 343.1 2709.58 2692.16 2558.12 -839.07 2692.22 341.84 1.07 4342 65.1 342.8 2735.49 2748.48 2611.97 -855.59 2748.53 341.86 0.78 4406 64.8 342.6 2762.59 2806.46 2667.33 -872.83 2806.51 341.88 0.55 4469 63.5 342.6 2790.06 2863.15 2721.43 -889.78 2863.20 341.89 2.06 4532 63.0 342.2 2818.41 2919.41 2775.06 -906.79 2919.45 341.90 0.98 4596 62.5 342.4 2847.67 2976.33 2829.28 -924.10 2976.38 341.91 0.68 4658 61.7 342.7 2878.63 3031.15 2881.58 -940.54 3031.19 341.92 1.51 4720 61.3 343.1 2906.21 3085.63 2933.66 -956.56 30$5.67 341.94 0.86 4783 60.2 342.4 2937.00 3140.60 2586.15 -972.86 3140.63 341.95 2.00 4846 59.8 342.5 2968.50 3195.15 3038.17 -989.31 3195.19 341.96 0.65 4910 58.3 342.4 3001.41 3250.04 3090.50 -1005.86 3250.07 341.97 2.35 4973 57.4 342.6 3034.93 3303.38 3141.37 -1021.90 3303.41 341.98 1.45 5035 55.8 342.8 3069.06 3355.14 3190.79 -1037.29 3355.16 341.99 2.59 5099 54.5 343.0 3105.63 3407.65 3240.99 -1052.74 3407.68 342.01 2.05 5162 52.9 343.1 3142.93 3458.42 3289.55 -1067.54 3458.44 342.02 2.54 5225 51.5 343.5 3181.54 3508.19 3337.23 -1081.84 3508.21 342.04 2.28 5289 51.3 343.8 3221.47 3558.19 3385.23 -1095.92 3558.20 342.06 0.48 5352 45.6 343.1 3261.58 3606.75 3431.79 -1109.76 3606.76 342.08 2.83 5416 48.7 343.2 3303.45 3655.16 3478.12 -1123.79 3655.17 342.09 1.41 5479 47.6 343.3 3345.48 3702.Q8 3523.06 -1137.32 3702.08 342.11 1.75 5543 46.6 343.2 3389.04 3748.95 3567.95 -1150.83 3748.96 342.12 1.57 5606 45.1 343.7 3432.92 3794.14 3611.28 -1163.70 3794.15 342.14 2.45 5670 44.d 343.7 3478.53 3839.03 3654.37 -1176.31 3839.03 342.16 1.72 5733 42.7 343.9 3524.34 3882.26 3695.90 -1188.37 3882.26 342.18 2.07 5796 41.3 344.2 3571.16 3924.38 3736.43 -1199.96 3924.39 342.20 2.24 5859 40.1 343.5 3618.92 3965.45 3775.89 -1211.38 3965.45 342.21 2.04 ~~ EPO~H 29 ~ ~ ~ ""M MARATHON OIL CaMPAiVY Grassim Oskolkoff #5 Measured Depth -nciination Azimuth ND Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/1N (-) Closure Closure qZimuth DLS (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft} (deg) (deg/100ft) 5921 38.9 343.1 3666.76 4004.88 3813.67 -1222.71 4004.88 342.22 1.98 5984 37.4 342.3 3716.30 4043.79 3850.82 -1234.28 4043.79 342.23 2.51 6047 36.3 341.5 3766.72 4081.58 3886.73 -1246.01 4081.58 342.23 1.90 6110 34.7 342.4 3818.00 4118.16 3921.51 -1257.35 4118.16 342.22 2.67 6173 33.4 342.7 3870.20 4153.43 3955.16 -1267.93 4153.43 342.23 2.08 6236 31.7 342.4 3923.30 4187.32 3987.50 -1278.10 4187.32 342.23 2.71 6299 30.4 343.3 3977.28 4219.82 4018.55 -1287.68 4219.82 342.23 2.19 6362 29.2 344.6 4031.94 4251.11 4048.63 -1296.34 4251.11 342.25 2.16 6424 27.9 345.1 4086.40 4280.71 4077.23 -1304.09 4280.71 342.26 2.13 6488 26.5 344.3 4143.33 4309.93 4105.45 -1311.80 4309.94 342.28 2.26 6551 25.2 343.0 4200.02 4337.39 4131.81 -1319.53 4337.39 342.29 2.25 6615 23.5 342.6 4258.33 4363.78 4157.02 -1327.33 4363.78 342.29 2.67 6678 21.9 341.8 4316.44 4388.Q9 4180.16 -1334.76 4388.09 342.29 2.59 6$02 19.9 341.0 4432.28 4432.32 4222.09 -1348.85 4432.32 342.28 1.63 6865 19.7 340.3 4491.56 4453.65 4242.23 -1355.92 4453.65 342.27 0.49 6927 18.9 340.5 4550.07 4474.13 4261.53 -1362.80 4474.13 342.27 1.29 6991 16.9 341.1 4610.97 4493.79 4280.10 -1369.27 4493.79 342.26 3.14 7053 15.5 339.2 4670.51 4511.08 4296.37 -1375.13 4511.d8 342.25 2.41 7116 14.7 342.0 4731.33 4527.48 4311.85 -1380.59 4527.48 342.25 1.72 7179 14.2 341.2 4792.34 4543.20 4326.76 -1385.55 4543.20 342.24 0.85 7242 11.9 340.9 4853.71 4557.42 4340.22 -1390.17 4557.42 342.24 3.65 7305 9.6 338.0 4915.60 4569.15 4351.23 -1394.26 4569.15 342.23 3.75 7368 7.7 336.7 4977.88 4578.59 4359.98 -1397.90 4578.59 342.22 3.Q3 7431 7.5 340.2 5040.33 4586.90 4367.72 -1400.96 4586.90 342.22 0.80 7494 6.5 338.8 5102.86 4594.57 4374.91 -1403.64 4594.57 342.21 1.61 7556 4.8 341.7 5164.55 4600.67 4380.65 -1405.73 4600.67 342.21 2.78 7619 3.4 337.7 5227.39 4605.17 4384.88 -1407.26 4605.17 342.21 2.27 7682 1.8 333.5 5290.32 4608.01 4387.49 -140$.41 4608.01 342.20 2.56 7745 0.8 297.9 5353.31 4609.30 4388.59 -1409.24 4609.30 342.20 1.97 7871 1.5 314.2 5479.28 4611.39 4390.15 -1411.20 4611.39 342.18 0.61 7997 1.4 282.3 5605.24 4613.61 4391.63 -1413.89 4613.62 342.15 0.64 ~ EPOCH 30 ~ ~ ~ M MARATHON OIL COMPANY Grassim Oskolkoff #5 Measured Depth ~nclinatian Azimuth T~~ Vertical Section Rectangular Coordinate (+) N/S (-) Rectangular Coordinate (+) E/1N (-) Closure Closure ,qZimuth ~~s (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft) 8123 1.8 291.0 5731.19 4615.62 4392.66 -1417.24 4615.63 342.12 0.37 8249 2.1 302.7 5857.12 4618.64 4394.62 -1421.03 4618.66 342.08 0.39 8375 2.5 304.4 5983.02 4622.60 4397.42 -1425.24 4622.62 342.04 0.32 8501 0.8 201.6 6108.98 4624.09 4398.15 -1427.83 4624.12 342.01 2.21 8626 1.8 176.6 6233.94 4621.51 4395.38 -1428.04 4621.54 342.00 0.90 8750 0.9 235.6 6357.91 4619.35 4392.89 -1428.73 4619.39 341.98 1.24 8878 1.0 253.0 6485.90 4619.07 4391.99 -1430.62 4619.12 341.96 0.24 9005 1.0 289.9 6612.88 4619.77 4392.05 -1432.73 4619.82 341.93 0.54 9132 1.5 302.7 6739.85 4621.73 4393.32 -1435.17 4621.79 341.91 0.45 9258 2.2 326.4 6865.78 4625.32 4396.23 -1437.89 4625.40 341.89 0.81 9321 3.1 327.4 6928.72 4628.14 4398.67 -1439.48 4628.22 341.88 1.43 9445 2.1 334.d 7052.59 4633.63 4403.54 -1442.28 4633.71 341.86 0.84 9572 2.6 334.9 7179.48 4638.79 4408.24 -1444.52 4638.88 341.86 0.39 9701 3.5 331.0 7308.30 4645.55 4414.33 -1447.87 4645.65 341.84 0.72 9822 4.3 328.2 7429.01 4653.57 4421.42 -1451.86 4653.69 341.82 0.68 9952 5.1 328.9 7558.58 4663.93 4430.51 -1457.41 4664.06 341.79 0.62 10074 6.0 326.4 7680.00 4675.34 4440.46 -1463.74 4675.49 341.76 0.76 10202 6.9 325.9 7807.19 4689.15 4452.40 -1471.75 4689.34 341.71 0.70 10330 7.7 323.9 7934.15 4704.67 4465.69 -1481.11 4704.90 341.65 0.66 *10384* 8.0 323.9 7987.65 4711.67 4471.65 -1485.46 4711.93 341.62 0.56 "TD Pro"ection* ~ E~Q~~ 31 ~ • ~ M MARATHON OIL COMPANY Grassim ~skolkoff #5 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Tv~e: Saud Mud: 81' - 2265' 6% KCI FloPro: 2265' - 10384' DATE MD ! ND MW VIS PV YP GELS FL FC SOL OIUH2O SD MBT pH Alk CI- Ca+ 1/14/07 81 / 81 8.8 59 20 25 14/21 /27 17 2 3 O197 25 9.2 0.4 220 20 1/15/07 148 / 148 8.8 89 19 34 15/26/ 0.5 1/15/07 344 / 344 80 60 19 28 14/22/30 16.4 2 3 0/97 0.5 27 8.9 0.3 140 Tr 1/16/07 839 / 834 8.8 55 13 26 21/30 8•9 1/16/07 1327 / 1304 8.9 53 12 24 22/33 8.7 1l16/07 1733 / 1634 9.0 50 11 24 23/31/37 2 4 0/96 0.5 23 8.8 0.3 100 40 1/17/07 2108 / 1850 9.3 45 9 24 15/20 8.7 1/17/07 2265 / 1912 9.4 42 9 20 13/18/21 9.8 2 5 0/95 0.25 18 8.5 0.2 80 40 1/18/07 2265 / 1912 9.35 43 10 19 12/17 10.2 2 5 0/95 0.25 16 8.4 Tr 60 0 1/19/07 2265 / 1812 9.1 43 10 19 12/17 10.2 2 5 0/95 0.25 16 8.4 Tr 60 Tr 1/19/07 2265 / 1912 9.35 64 8 23 5/5 8.6 1 5 1/94 0 0 9.2 0.4 34000 Tr 1/20/07 2265 / 1912 9.1 59 9 22 5/5 8.6 1 5 1/94 9.2 0.4 34000 Tr 1/20/07 2265 I 1912 9.1 52 11 19 6/7 7.4 1 5 0.5/94.5 9.6 0.5 34500 Tr 9/21/07 3068 / 2223 9.2 51 13 21 6/9 S.6 1 5 1/95 0.25 1 10.1 0.65 35000 40 1/21/07 3689/2479 9.4 50 17 18 5/10 6.3 1 7 Tr/93 0.25 2.4 10.Q 35000 40 1/21 /07 4187 / 2672 9.6 55 17 22 9/15 6.5 1 8 Tr/92 0.1 4 9.8 0.6 34500 40 1/22/07 4962 ! 3029 9.5 56 15 22 8/13 6.6 1 7.5 0/93 0.1 9.9 0.6 33000 40 1/22107 5468 / 3338 9.5 52 14 21 9/15 6.2 1 7.5 0/93 0.1 6 9.8 0.6 32000 40 1/23/07 6102 / 3811 9.5 50 14 23 9/14 6.6 1 7.5 2/91 0.1 6.5 9.9 0.6 31000 40 1/23I07 6736 / 4371 9.6 53 15 22 9/13 6.8 1 8 4/88 Tr 7 9.9 0.6 32000 40 1/24/07 6744 / 4378 9.6 53 13 21 7/9/11 5.5 1 10 4/86 Tr 7.5 9.8 0.6 31 d00 40 1/25/07 6744 ! 4378 9.8 59 14 20 7/9/ 1/25/07 6744 ! 4378 9.7 53 14 19 7/9i11 5.8 1 8 2/9Q Tr 5 9.5 0.5 30000 40 Contractor: MI Drilling Fluids E~ EPOCI-~ 32 ~ ~ ~ M MARATHON OIL COMPANY Grassim Oskolkoff #5 Muri TvnP• R% KCI FlnPrn~ 77R5' - 1038a' - -- DATE MD / ND MW VIS PV YP GELS FL FC SOL OIUH2O SD MBT pH Alk CI- Ca+ 1/26/07 6744 / 4378 9.7 56 1/27107 6744 / 4378 9.7 56 1/28/07 6744 l 4378 9.7 56 1/29/07 6942 / 4564 9.1 50 8 14 6/8/9 5.6 1 10 6/84 0.25 5 9.2 0.5 31500 80 1/29/07 7193 / 4806 9.1 53 12 24 12/14/16 5.2 1 9 4/87 0.25 5 8.7 0.5 350Q0 60 1129/07 7297 / 4908 9.1 52 14 24 11/14/16 4.1 1 10 4/86 0.25 2.5 S.7 0.5 295000 40 1/30107 7680 / 5288 9.1 48 9 23 8/12/14 4 1 6 4/90 0.025 5 10.1 0.7 29000 50 1/30/07 8095 ! 5703 9.2 48 10 25 9/13/15 3.9 1 6.5 4/90 0.025 5 10.0 0.55 31000 40 1/30/07 8242/5850 9.2 48 10 24 9/12l14 3.9 1 6.5 4/90 0.025 5 10.0 0.5 30000 40 1l31/d7 8492/6100 9.3 48 10 23 9/13/15 4.1 1 7 4/$9 0.25 5 9.9 0.45 32000 40 1/31 /07 8618 / 6226 9.35 49 11 22 9/14 4.4 1 7 4/89 0.25 5 10.0 0.5 32000 40 2/01 /07 8991 / 6599 g.5 53 11 23 11 /16 4.6 1 8 4/86 0.25 5 10.0 0.5 32000 40 2/01/07 9310 / 6918 g.4 52 11 24 11l15 4.5 1 7 5/88 0.1 6 9.9 0.5 31000 40 2/02/07 9373 / 6981 9.4 47 11 22 10/14/ 1 0.1 9.9 0.5 2/02107 9385 / 6993 9.5 49 11 23 10/14/ 4.8 1 8.0 5/87 0.1 6.0 9.8 0.5 30000 40 2/03/07 9681 ! 7288 9.35 51 12 22 10/16 4.2 1 7 5/88 Tr 6 9.8 0.5 30000 40 2/03/07 9865/7472 9.4 49 11 24 11/16 3.8 1 7 5/88 0.1 6 9.6 0.4 29000 40 2/04/07 10069 / 7702 9.4 48 11 24 11/16 4 1 7 5/88 Tr 6 9.6 0.4 29000 40 2/04107 10384 / 7988 9.5 42 11 19 8/12/17 3.8 1 8 4.5/87.5 Tr 5 10.0 0.6 30000 Tr 2/05/07 10384 / 7988 9.5 44 10 21 7/11 /15 4 1 8 5/88 Tr 5 9.9 0.6 30000 Tr 2/08/07 10384/7988 9.5 43 11 20 6/8 4.2 1 8 5/88 5 10.0 0.6 30000 Tr 2/07/07 10384 / 7988 9.3 43 7 18 6/11 /13 4.6 1 8 4/88 Tr 5 10.2 0.75 27500 40 2/07/07 10384 / 7988 9.3 43 7 18 6/11 /13 4.6 1 8 4/88 Tr 5 1 Q.2 0.75 275Q0 40 2108/07 10384 / 7988 9.3+ 46 7 18 6/11 /13 4.6 1 8 4/88 Tr 5 10.2 0.75 275000 40 2/08/07 10384/7988 9.3+ 43 7 17 6/8/10 4.5 1 7.5 4/89 Tr 5 10.1 0.75 27000 40 2/09/07 10374/7988 9.4 42 8 18 7/9/11 4.8 1 7.5 4/89 Tr 5 9.9 0.5 28000 40 2/09/07 10384/7988 9.4 43 8 18 7/9/11 4.8 1 7.5 4/89 Tr 5 S.9 0.5 28000 40 ~~ EPtJC~I 33 f ~ ~ M MARATHON OIL COMPANY Grassim Oskolkoff #5 Contractor: MI Drilling Fluids Muri Tvne• 6% KCI FloPrn~ 2265' - 10384' DATE MD / ND MW VIS PV YP GELS FL FC SOL OIUH2O SD MBT pH Alk CI- Ca+ 2/10/07 10384 / 7988 9.4 43 8 18 7/9/11 4.6 1 8.0 4/88 Tr 5.0 9.8 0.5 25000 40 2/10/07 10384 / 7988 9.4 47 9 20 9/11 /13 4.6 1 7.5 5/88 Tr 5.0 10.1 0.65 26QOQ 40 2/11/07 10384 / 7988 9.4 45 9 20 8/10/12 5.0 1 8.0 5/87 Tr 5.0 9.5 0.4 26000 40 2/11/07 10384 / 7988 9.4 45 9 19 8/10/12 4.8 1 8.0 5/87 Tr 5.0 9.7 d.55 30000 40 2/12/07 10384 / 7988 9.5 47 9 22 8/11/13 4.5 1 8.5 5/87 Tr 5.0 9.7 0.65 26000 40 2/12/07 10384 / 7988 9.5 46 9 21 8/11/13 4.7 1 8.5 5/87 Tr 5.0 9.8 0.65 27000 40 2/13/07 10384 / 7988 9.5 46 9 21 8/11/13 4.7 1 8.5 5/87 Tr 5.0 9.8 0.65 27000 40 2/13/07 10384 / 7988 9.6 47 8 23 9/11 /13 5.4 1 9.0 5/86 Tr 5.0 10.0 0.9 26000 60 2/14/07 10384 / 7988 9.6 47 8 22 8/10/ 5.2 1 9.0 5/86 0.25 5.0 9.7 0.9 25000 7r 2/14/07 10384 / 7988 9.6 43 8 18 7/9/ 5.6 1 9.0 5/86 0.25 5.0 10.2 1.0 26000 180 2/15/07 10384 / 7988 9.6 43 8 17 7/8/ 5.6 1 9.0 5l86 0.1 5.0 10.1 1.0 26000 160 2/16J07 6516 / 4169 8.65 28 1 1 KCI Brine 1.0 0/99 8.5 30000 ~~ ~~~C~ 34 ~ i ~ M MARATHON OIL COMPANY Grassim Oskoikoff #5 4.4. BIT RECORD PP BIT SIZE T~PE S/N JETS/ IN OUT FT HRS AVE WOB RPM Lo - Avg CONDITION NO. " TFA ROP Lo - Avg - Hi - Hi 1 ~ 2 25 HCC 5092250 3x18 g1 344 263 4.90 93,g 0.3 -3.0 - 62.0 333 - 486 - 1-1-NO-A-E-1-NO-BHA RR1 MXL-1 1 x16c' 8.9 657 1 ~ 2 25 HCC 5092250 3x18 344 2265 1921 22.32 117.5 0.5 -11.4 - 8~ 3 909 -1561 - 2_2_WT-A-E-1-BU-TD RR2 MXL-1 1 x16c' 382 2046 2 8 5 HCC 7104387 5x15 2265 6744 4479 34.94 175.6 0.4 -18.7 - 85 5 724 - ~ ~2~ - 1-1-WT-A-X-1-NO-TD HCM605 56.2 2275 3 4'75 x HCC ~008752 2x11 6744 9373 3029 67.01 67.0 1.1 - 8.2 - 78•0 1263 -1967 8'8'RO-A-X-2/16-NO-PR HCM305 3x12 49 8 - 3137 7RWD '~ 4.75 X HCC ~003484 4x11 9373 10384 1011 30.95 41.9 1.0-3.6- 78.3 1581 -2171 1-4-OC-G-X-4/16-BT-TD HCM404 29 9 _ 2868 7RWD ~O d~ 6 125 5043882 3x20 10384 10384 0 0 n/a n/a n/a n/a NG (C~ean out run on~y) ~ . STX-1 6 125 5043882 3x20 10384 10384 0 0 n/a n/a n/a n/a NG (Clean out run only) (o a) . TX-1 ~ ~~~~~ 35 ~ ~ ~ M """""°" MARATHON OIL COMPANY Grassim Oskolkoff #5 4.5. DRILLING PROGRESS CHART 0' 1000' 2000' 3000' 4000' LL 5000' x ~ w 6000' 0 7000' 8000' 9000' 10000' 11000' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ __ ~ _ ~ ~ ~ ~ c ~ & @ e ~ 3 S ~ ~ ~ ~ ~ ~ ~ a `a 'DATE ~~ EPOCH 36 S ~ ~ ~ ~ Daily Report Page 1 of 1 Marathon Oil Company "~^~'~h~k u~~t DAILY WELLSITE REPORT E+ ~~~H Grassim Oskolkoff #5 REPORT FOR John Nicholson DATE Jan 14 , 2007 DEPTH 81 PRESENT OPERATION Continuing rig up operations. Function testing lines. TIME 24:00 YESTERDAY 81 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ ST SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYpE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PS~ DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ ~ TRIP GAS CUTTWG GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (G1) @ ~ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(G5) ~ p~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY Continuing rig up operations. Accept rig. Set up and nipple up diverter and knife valve. Lutie, charge, roll and test run all three mud pumps. ACTIVITY Continue nipple up of diverter system, drilling nipple flowline, trip tank and fill-up lines. Install diverter line. Hook up gas alarms. Complete SUMMARY mixing spud mud. Rig up windwalls on board. Thaw out and repair trip tank lines. Rig floor drain. Repair and adjust crowno-matia Rig, condition, audit and inspect mast, tugger lines, pins and keepers, mud lines and water lines. Function test all safety controls and shut downs. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20 Wells\... 1/ 16/2007 ~ \J Daily Report Page 1 of 1 Marathon Oil Company rvi~i~cnikunit DAILY WELLSITE REPORT ~ ~~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholsan DATE Jan 15, 2007 DEPTH 391 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 81 24 HOUR FOOTAGE 310 CASING INFORMATION 20" @ 8T DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA z~5 2•9 016.0 274.88 335 3.3 016.5 334.79 396 3.6 014.8 395.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC MXL-1 5092250 3x18, 1z16cj 81 344 2fi3 4,90 1-1-NO-A-E-1-NO-BHA Change BHA 1RR1 12.25 HCC MXL-1 5092250 3x18, 1x16cj 344 391 47 0.49 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 276.5 @ 82 9.6 @ 93 96.7 67.2 FTlHR SURFACE TORQUE 1797 @ 379 737 @ 128 976.6 893.2 AMPS WEIGHT ON BIT 19 @ 379 0.3 @ 128 3.4 2.0 KLBS ROTARY RPM @ @ R PUMP PRESSURE PM 1236 @ 379 333 @ 121 577.2 976.0 PSi DRILIING MUD REPORT DEPTH 344 / 344 TVD MW 8.8 VIS 60 PV 19 YP 28 FL 76.4 Gels 14/22/30 CL- 140 FC 2 SOL 3.0 SD 0.5 OIL 0/97 MBL 27.0 pH 8.9 Ca+ Tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGW LOW AVERAGE DITCH GAS 3 @ 140 0 @ 314 A.5 TRIP GAS 0 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 666 @ 740 17 @ 277 g4.4 CONNECTION GAS HIGH ETHANE(G2) @ @ PROPANE(G3) AVG @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0.5 / 1 A PENTANE(GS) pc ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Calibrate gas alarms. Test diverter and accumulator. Repair and reset crown-o-matic. Repair elevator and close button. Rig up to pick up 5" drill DAILY P~PB• Pick up, d~ift, make up, stand back and strap 5" drill pipe (1586' total, 50 joints). Thaw water lines. Lay out, strap, drift, pick up and make up ACTIVITY short bottom hole assembly (with shock sub). Run in conductor and tag at 37'. Clean out conductor from 37' to 81'. Spud well and drill from 81' to ' . Circulate out and SUMMARY 344 pull out of hole. Lay down shock sub. Blow down mud lines. Pick up and make directional bottom hole assembly (mudmotor, short NMD ' C, crossover subs, NM CSDPs, shock sub, MWD). Orient MWD tools. Run in hole to 344' and test MWD tool Drill from 344 to 391'. . EPOCH PERSONNEL ON BOARD 2 DAILY COST ML; 2525 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 / 16/2007 Daily Report Page 1 of 1 Marathon Oil Company N~~a~n~kun~t DAILY WELLSITE REPORT ~~'~~~ G~assim Oskolkoff #5 REPORT FOR John Nicholson DATE Jan 16, 2007 DEPTH 1808 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 391 24 HOUR FOOTAGE 1417 CASING INFORMATION 20" @ 8T DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 454 3:0 013.5 453.59 SURVEY DATA 822 3.3 344.6 821.33 1201 21.3 340.0 1190.15 1582 37.1 341.3 1519.83 1835 49.2 340.8 1703.76 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25 HCC MXL-1 5092250 3x18, 1z16cj 344 1464 15.56 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION 298.9 @ 700 13J @ 1725 124.8 59.7 FT/HR SURFACE TORQUE 1840 @ 1685 0 @ Sliding 887.3 388.1 AMPS WEIGHT ON BIT 32 @ 980 0.9 @ 1006 8.6 14.5 KLBS ROTARY RPM 113 @ 1514 0 @ Sliding 86.6 84.0 RPM PUMP PRESSURE 1826 @ 1424 938 @ 1726 1517.4 1629.4 PSI DRILLING MUD REPORT DEPTH 1733 / 1634 ND MW 9.0 VIS 50 PV 11 Yp 24 FL 10.8 Gets 23/31/37 CL- 100 FC 2 SOL 4.0 SD 0.5 OIL 0/96 MBL 23.0 pH 8.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 43 @ 1750 0 @ 392 11:4 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (G1) 8782 @ 1750 69 @ 1401 2231.2 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 10 / 23 PENTANE(G5) ~ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 391' to 840'. Lose rig power. Troubleshoot generato rs. Drill (rotating and sliding) from 840' to 1808'. ~ EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 435 REPORT BY Craig Silva file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /17/2007 ~~ L ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ E~~~H Grassim Oskolkoff #5 REPORT FOR John Nicholson DATE Jan 17, 2007 DEPTH 2265 PRESENT OPERATION Preparing to run 9 5/8" casing TIME 24:00 YESfERDAY 1808 24 HOUR FOOTAGE 457 CASING INFORMATION 20" @ 8T DEPTH INCUNATION AZIMUTH VERTICAL DEPTH 1899 52.8 340.8 1744.05 SURVEY DATA 1962 57.~ 34p.~ ~~80 2Z 2089 64,6 341.5 1842A2 2153 67.1 342:0 1868.20 2208 66.8 342.9 1889J4 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1RR1 12.25 HCC MXL-1 5092250 3z18, 1z16cj 344 2265 1921 22.32 2-2-WT-A-E-1-BU-TD Casing pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 232:4 @ 21fi7 9.7 @ 2152 95.3 91.6 FTIHR SURFACE TORQUE 3200 @ 2227 0 @ Sliding 2871.2 3006.8 AMPS WEIGHT ON BIT 38 @ 2060 2 @ 2246 20.7 23.9 KLBS ROTARY RPM 134 @ 2193 0 @ Sliding 53.6 121.0 RPM PUMP PRESSURE 2046 @ 2260 909 @ 1834 1750.6 1918.3 PSI DRILLING MUD REPORT DEPTH 2265 / 1912 TVD MW 9.4 VIS 42 PV 9 YP 20 FL 9.8 Gels 13/18/21 CL- 80 FC 2 SOL 5.0 SD 0.25 OIL 0/95 MBL 18.0 pH 8.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 86 @ 2235 9 @ 1901 30.9 TRIP GAS 145 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 17300 @ 2235 1887 @ 1901 6183.5 CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) Q @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill (rotating and slidin g) from 1808' to 2265'. Circulate bottoms up. Pump dry job. Pull out of hole. Lay down shock sub Stand back CSDPs . . DAILY Lay down MWD tools. Clean and grade biL Clean rig floor. Service rig and Topd~ive. Change out switch for Topdrive. Pick up, make up and run ACTIVITY in MWD tools. Run in C SDPs. Continue running in hole to bottom (2265'). Ci~culate bottoms up. Mix and pump around Hi-Vis sweep. Circulate SUMMARY hole clean. Pull out of fiole. Lay down directional tools (CSDPs, short NMDC, MWD collar, staBilizer, cross-overs, motor, bit). Rig down and lay down drill pipe handling tools. Clear and clean rig floor. Blow down mud lines. Clean cellar. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 435 REPORT BY Craig Silva ~ file://C: \Marathon\Morning%20Reports\20070117.htm 1/18/2007 Daily Report ~ ~ Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ E~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 18, 2007 DEPTH 2265 PRESENT OPERATION Preparing to nipple up BOPs TIME 24:00 YESTERDAY 2265 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2264' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2265 (Projection) 66.8 342.9 1912.19 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLINGPARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS INEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2265 / 1912 ND MW 9:35 VIS 43 PV 10 YP 19 FL 10.2 Gels 12/17/ CL- 60 FC 2 SOL 5.0 SD 0.25 OIL 0/95 MB~ 16.0 pH 8.4 Ca+ 0 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 46 @ 2265 (Trip gas) 1@ Displacing N/A TRIP GAS 46 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Changeout bails, elevators, snub post and tongs. Rig up floor and Weatherford casing running tools. Hold pre-job meeting on cementing procedures and safety. Make up, run in and test (401b, L-80) 9 5I8" shoe tract. Continue running in 9 5/8" casing and set shoe at 2264'. (Float collar at 2222') Rig down and load ff W th . o ea erford equipment. Rig up BJ cementing head and cement lines. Circulate bottoms up and continue to circulate, condition and clean mud. (1 1/2 bottoms up total). Record 46 units of trip gas. Pump 40 btils of mud clean ith d d d (w re ye a ded) with rig pumps. Drop bottom plug. Switch over to BJ pumping unit. Pump 2 bbls of water and test lines to 3000psi. Batch up cement. Pump 232 bbls of 12.Oppg cement slurry. (532 sacks Type 1 cement with acceler t h mi l a or c e ca s to 131 bbls water for 10.339 gal/sack yield). Drop wiper plug with 2 DAILY bbls of water to confirm. Displace (at 320psi) with 166 bbls of (9 2p ) mud B m l ith . pg . u p p ug w overpressure (1032psi total). Pump total of 170 bbls (4 ACTIVITY bbls over calculated displacement). Note 16 btils of lost circulation as cement turned corner. BJ temporarily increased pump rate to 8 5b m then SUMMARY d d . p , re uce rate to 3.5bpm while reciprocating, and circulation retumed without further losses. Cement was returned to the surface, and 90 bbls excess cement was pumpetl into cellar Note BJ flow t t . me er s opped operating during latter part of displacement and pumps only able to displace from 4.5bpm to 1.2bpm for last 30 minutes. Hold for 5 minutes after plug bumped. Floats held. Cement in place Be in wait on c nt Fl h . g eme . us stack and mud lines. Rig down cementing head. Blow down mud lines. Clear and clean rig floor. Begin hauling off mud. Nipple down diverter line. Clean cellar. Remove knife valve Pul~ and load off mouse h l Ri d f . o e. g own ill, bleed and trip tank lines. Nipple down and move aside flow line extension. Fix throttle solenoid and hour meter on #2 mud pump Make rou h c t 9 5/8" . g u on casing and lay down cut section. Remove bell nipple. Change out flow line extensions. Nipple down diverter stack and set in rack and load off. Spot new BOP stack Begin cleanin it R a i . g p s. emove st rt ng head. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%ZOand%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /19/2~(17 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT E+~~~H Gressim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 19, 2007 DEPTH 2265 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 2265 24 kOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 2264' SURVEY DATA DEPTH WCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTlHR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE ~ @ PS~ DRILLING MUD REPORT DEPTH 2265 / 1912 ND MW 9:35 VIS 43 PV 10 YP 19 FL 10:2 Gels 12/17/ CL- 60 FC 2 SOL 5:0 SD 0.25 OIL 0/95 MBL 16.0 pH 8.4 Ca+ Tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ p~ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ Q CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Rough cut 20" conducto~. Good cement to top of 20". Rough cut 9 5/8" casing. Dress 9 5/8" cut. Stage BOP stack with crane. Set and install 9 5!8" slip lock connection with 11" (5M) flanged multibowl wellhead. Wellheatl would not adjust smoothly at contact points. Pull off wellhead and observe cut o-ring caused by burr on 9 5/8". RedCess 9 5/8" casing and change out o-ring. Reinstall wellhead without problems. Successfully test slip-lock seal to 2500psi for 10 minutes. Finish cleaning pits and begin mixing new mud. Nipple up BOPs, DSA and HCR. Install DSA for mud cross and DAILY then inside kill valve. Change out bails. Nipple up outside kill and'90'. Nipple up check valve, kill line hose, bell nipple, riser, flowline extension and ACTIVITY then choke, fill-up, trip tank and bleeder lines. Nipple up accumulator hose. Continue mixing new mutl. Rig up elevators and rig tongs. Pick up , set SUMMARY up and install test equipment and test joint. Function test BOPs. Change fitting on lower pipe rams. Perform sFiell test to observe for leaks. Fix leak at choke line connection. Fix sensor on chart recorder. Begin testing of all BOPE. Test annular to 250psi low / 2500psi high. Observe leaking door seal on single gate. Change out door seal. (Observe bad thread). Tighte~ DSA to single gate flange. Continue testing all BOPE to 250psi low / 2500psi high. (Successively test annular, upper pipe rams, upper and lower kelly cock, dart and floor valves, inside and outside kill valves, check valve, HCR, manual choke and lower pipe rams while also testing CMVs 1,2,5,6,7,8,9,10,11,12). ' EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 435 REPORT BY Craig Silva file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20 Wells\... 1 /20/2007 Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ ~-+~~~~H Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 20, 2007 DEPTH 2499 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2265 24 HOUR FOOTAGE 234 CASING INFORMATION 9 5/8" @ 2264' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2320 66.1 341.5 1934.49 SURVEY DATA 238g 65.6 341.2 1960.26 2446 66.5 341.4 1985.84 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B!C PULLED 2 8.5 HCC HCM605 7104387 5x15 2265 234 1.85 In Hole DRILLINGPARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION 263.8 @ 2457 14.0 @ 2266 153.3 195.6 FT/HR SURFACE TORQUE 1909 @ 2459 0 @ Sliding 1664.1 1772.3 AMPS WEIGHT ON BIT 12 @ 2452 1 @ 2327 4.2 5.7 KLBS ROTARY RPM 101 @ 2325 0 @ Sliding 75.7 87.1 RPM PUMP PRESSURE 1409 cQ 2459 724 @ 2267 1208.1 1331.8 PSI DRILLING MUD REPORT DEPTH 2414 / 1973 ND MW 9.1 VIS 52 PV 11 YP 19 FL 7.4 Gels 6/7/ CL- 34500 FC 1 SOL 5.0 SD 0 OIL 0.5/94.5 MBL 0 pH 9.6 Ca+ Tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 45 @ 2360 2 @ 2332 14J TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 8984 @ 2402 345 @ 2332 2782.9 CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE(C3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 4/ 24 PENTANE(G5) @ ~ HYDROCARBON SHOWS NONE INTERVAL LITWOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Sand/Sandstone. Minor Tuffaceous Siltstone, CoaVCarbonaceous Shale, Tuffaceous Shale, Volcanic Ash. PRESENT LITFiOLOGY ..........TUFFACEOUS CLAYSTONE..........SAND/SANDSTONE.......... Continue testing BOPE to 250psi Low / 2500psi High. (Finish testing lower pipe rams, then test blind ram and CMVs 3,4). Do accumulator performance test. Pull test plug and rig down testing equipment. Install wear ring. Blow down choke manifold. Drift, pick up, make up, run in, pull DAILY out and stand back 5" drill pipe. Pick up, make up and run in hole new directional bottom hole assembly. Fill pipe. Test MWD tools. Blow down ACTIVITY equipment. Service Qubricate) rig. Inspect rig and do safety clean up. Pick up, make up, drift, run in, pull out and stand back (34 joints, 17 stands) SUMMARY of 5" drill pipe. Rack and tally 44 joints of 5" drill pipe. Pick up, drift, maRe up and run in hole to 2057'. CirculAte bottoms up. Test 9 5/8" casing to 2500psi for 30 minutes. Tag cement at 2220'. Drill out float equipmerit and continue drilling out remaining shoe track to 2265'. Drill 20' of new hole from 2265' to 2285'. Circulate bottoms up. Clean pill pit. Make and pump spacer. Displace hole with new 9.1ppg Flo-Pro Mud. Run two consecutive Formation Integrity Tests to 17.3 EMW (9.1 ppg, 820psi, 1920tvd). Drill (rotating and sliding) from 2285' to 2499'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C: \Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /22/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilctiikUnit DAILY WELLSITE REPORT ~P~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 21, 2007 DEPTH 4269 PRESENT OPERATION Driliing TIME 24:00 YESTERDAY 2499 24 HOUR FOOTAGE 1770 CASING INFORMATION 9 5/8" @ 2264' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2510 66.5 341.1 2011.36 SURVEYDATA 2953 66.~ 34~•~ 2188.51 3394 67.3 341.9 2362.23 3836 68.0 343A 2535.17 4280 65.5 343.1 2709.58 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HCM605 7104387 5x15 2265 2004 12.32 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENTAVG RATE OF PENETRATION 312.3 @ 3201 18.7 @ 3008 202.1 225.4 FTlHR SURFACE TORQUE 2695 @ 3944 0 @ Slitling 1851.9 1872A AMPS WEIGHT ON BIT 25 @ 2822 1 @ 3780 12.7 18.5 KLBS ROTARY RPM 114 @ 3134 0 @ Sliding 89.3 89.8 RPM PUMP PRESSURE 1795 @ 4261 1234 @ 2626 1529.0 1721.0 pg~ DRILLING MUD REPORT DEPTH 4187 / 2671 TVD MW 9.6 VIS 55 PV 17 YP 22 FL 6.5 Gels 9/15/ CL- 34500 FC 1 SOL 8A SD 0.1 OIL Td93 MBL 4.0 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 63 @ 3118 3 @ 3960 22.5 TRIP GAS CUTTING GAS @ @ WIPER GAS 22 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 12750 @ 3118 24 @ 3960 4460.5 CONNECTION GAS HIGH ETHANE(G2) @ @ PROPANE (C-3) @ @ AVG BUTANE (C-4) @ @ CURRENT C URRENT BACKGROUND/AVG 8/ 23 PENTANE(G5) ~ @ HYDROCARBON SHOWS NONE INTERVAI. LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Sand/Sandstone. Minor Tuffaceous Siltstone, Tuffaceous Shal e, Coal/Carbonaceous Shale Volcanic Ash. , PRESENT LITHOLOGY ......:...TUFFACEOUS CLAYSTONE:.........SAND/SANDSTONE.......... DAILY ACTIVITY Drill (rotating and sliding) from 2499' to 3761'. (Pump sweep at 3690'). Circulate tiottoms up and cir culate hole dean Pull out of hole on wi er . p SUMMARY trip to shoe. (Pulled tight at 3038', 2775', 2659'). Service rig and Topdrive. Clean rig floor. Change out batl turbo-charger on #2 carriec Clean cellar and t~ip tank. Run back in hole to 3699'. Wash down from 3699' to 3761'. Drill (rotating and sliding) from 3761' to 4269'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva file:UC:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /22/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ ~P~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 22, 2007 DEPTH 5594 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4269 24 HOUR FOOTAGE 1324 CASING INFORMATION 9 5/8" @ 2264' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4342 65.1 342.8 2735.49 SURVEY DATA 4658 61.7 342.7 2876.63 4973 57.4 342.6 3034.93 5289 51.3 343.8 3221.47 5606 45.1 343.7 3432.92 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8:5 HCC HCM605 7104387 Sz15 2265 3329 22 .51 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 294.4 @ 4965 8.4 @ 5584 171:0 114.8 FT/HR SURFACE TORQUE 3398 @ 5389 0 @ Sliding 2239.9 2286.8 AMPS WEIGHT ON BIT 48 @ 4906 1 @ 5529 20.8 6.9 KLBS ROTARY RPM 113 @ 4449 0 @ Sliding 87.1 81.1 RPM PUMP PRESSURE 2073 @ 5216 1587 @ 4332 1848.1 1814.4 PSI DRILLING MUD REPORT DEPTH 5468 / 3338 TVD MW 9.5 VIS 52 PV 14 YP 21 FL 6.2 Gels 9/15/ CL- 32000 FC 1 SOL 7.5 SD 0.1 OIL 0/93 MBL 6.0 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 4743 1 @ 5292 17B TRIP GAS CUTTING GAS @ Q WIPER GAS 53 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 7389 @ 4743 110 @ 5236 3492.7 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE(C3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDIAVG 6/ 16 PENTANE(G5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Claystone. Minor Tuffaceous Siltstone, Coal/Carbonaceous Shale, Volcanic Ash, Tuffaceous Shale. PRESENT LITHOLOGY ..........SAND/SANDSTONE..........TUFFACEOUS CLAYSTONE.......... DAILY ACTIVITY Drill (rotating and sliding) from 4269' to 5213'. Circulate bottoms up. Circulate hole clean. Check for flow. Pump dry job. Pull out of hole on SUMMARY Wiper trip to 3636'. Backream at 4810, 4356', 4315', 3938', 3805' while pulling out. Run in hole to 5151'. Wash down from 5151' to 5213'. Drill (rotating and sliding) from 5213' to 5594'. EPOCH PERSONNEL ON BOARD 4 DAILY CpST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20 Wells\... 1 /23/2007 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSIT EREPORT E+~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Feketi DATE Jan 23, 2007 DEPTH 6736 PRESENT OPERATION Wiper Trip to shoe TIME 24:00 YESTERDAY 5594 24 HOUR FOOTAGE 1142 CASING WFORMATION 9 5/8" @ 2264' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5670 44.0 343.7 3478.53 SURVEY DATA 5921 38.9 343.1 3666.76 6173 33.4 342.7 3870.20 6424 27.9 345.1 4086.40 6678 21.9 341.8 4316.44 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8:5 HCC HCM605 7104387 5z15 2265 6736 4471 34.84 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 256.3 @ 6165 6.8 @ 6626 145.0 28.5 FT/HR SURFACE TORQUE 3763 @ 6730 0 @ Sliding 2643.0 2577.0 AMPS WEIGHT ON BIT 71 @ 6383 2 @ fi512 28.6 4.2 KLBS ROTARY RPM 107 @ 5929 0 @ Sliding 87.3 86.4 RPM PUMP PRESSURE 2249 @ 6187 1733 @ 5622 1999.7 1999.3 PSI DRILLING MUD REPORT DEPTH 6736 / 4371 TVD MW 9.6 VIS 53 PV 15 YP 22 FL 6.8 Gels 9/13/ CL- 32000 1 SOL 8.0 SD Tr OIL 4788 MBL 7.0 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 192 @ 6639 1 @ 6721 28.5 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 38453 @ 6639 294 @ 6721 5459.8 CONNECTION GAS HIGH ETHANE (C-2) 6 @ 6041 0 @ 0.1 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG NIA PENTANE (C-5) @ ~ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, CoaUCarbonaceous Shale. Minor Tuffaceous Siltstone, Volcanic Ash, Calcareous Tuff. PRESENT ,..,,,.,,,SANDISANDSTONEITUFFACEOUS SANDSTONE......... LITHOLOGY . DAILY ACTIVITY Drill (rotating and sliding) from 5594' to 6736'. Circulate bottoms up. Pump around Hi-Vis sweep. Circulate hole clean. Check for flow. SUMMARY Pull out of hole on wiper trip to shoe: EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C: \Marathon\Morning%20Reports\20070123.htm 1/24/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~+~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 24, 2007 DEPTH 6744 PRESENT OPERATION Running In hole with shuttle logging assembly TIME 24:00 YESTERDAY 6736 24 HOUR FOOTAGE 8 CASING INFORMATION 9 5/8" @ 2265' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6744 20.4 341.8 4378.00 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HCC HGM605 7104387 5X15 2236 6744 4479 34.94 1-1-WT-A-X-1-NO-TD Casing pt. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 304.1 @ 6740 54.5 @ 6744 172.8 54.5 FT/HR SURFACE TORQUE 3b85 @ 6738 3262 @ 6737 39022 3434.2 AMPS WEIGHT ON BIT 13 Q 6743 3 @ 6738 10.9 12.2 KLBS ROTARY RPM 86 @ 6741 79 @ 6739 95.5 85.2 RPM PUMP PRESSURE 2275 qe 6740 2134 @ 6738 2509.6 2157.9 PSI DRILLING MUD REPORT DEPTH 6744 / 4378 ND MW 9.6 V1S 53 PV 13 YP 21 FL 5.5 Gels 7/9/11 CL- 31000 FC 1 SOL 10.0 SD Tr OIL 4/86 MBL 7.5 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 28 @ 6737 14 @ 6744 23.0 TRIP GAS CUTTING GAS @ @ WIPER GAS 76 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1j 5750 @ 6737 2802 @ 6744 4596.4 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 14 / 23 PENTANE(G5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone, Tuffaceous Sandstone. PRESENT LITHOLOGY ..........SAND/SANDSTONE..........TUFFACEOUS SANDSTONE....:..... Continue pulling out of hole (from 5596' to 2243') on wiper trip to shoe. (Pulled tight and wiped back through at 5675' to 5550', 5390', 3861', 3155' ). Lub~icate rig (Topdrive, crown, blocks, drivelines). Run back in hole from 2243' to 6668'. Wash down from 6668' to 6736' with no fill. Tag and drill (rotating) from 6736' to 6744'. Circulate bottoms up. Pump around Hi-Sweep. Clean and condition mud. Check for flow. Drop 2 7/8" rabbit. DAILY Pump dry job. Pull out of hole from 6744' to 133' (SLM). Pull out of hole laying down directional BHA (crossovers, NM CSDPs, MWD coliar, ACTIVIT'Y stabilizer, short NMDC, mudmotor, bit). Clean and grade bit. Clean rig floor. Biow down mud lines. Holtl pre-job meeting on making up shuttle SUMMARY logging system. Pick up and make up reamer, CLS, stabilizer, 3 1/2" drill pipe and lower latch. Pick up and make up Weatherford Quad-Combo logging tools, upper latch and float. Install, seat and latch up logging assembiy. Run logging assembly on 5" HWDP in hole to 915'. (Drift 3 stands of HWDP). Perform pressure check on tool assembly (185psi at 2 bblslmin, 419psi at 4 bbls/min, 923psi at 6 bbls/min). Run in hole to 2239'. Perto~m pressure check on tool assemtily (224psi at 2 bbls/min, 525psi at 4 b61s/min, 1000psi at 6 6bls/min). Blow down mud lines. EPOCH PERSONNEL OP1 BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva file: //C: \Marathon\Morning%20Reports\20070124.htm 1/25/2007 ~ ~ ~, I u Daily Report Page 1 of 1 Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 25, 2007 DEPTH 6744 PRESENT OPERATION Running 7" Casing TIME 24:00 YESTERDAY 6744 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5IB" en 2265 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 6744 / 4378 TVD MW 9J VIS 53 PV 14 YP 19 FL 5.8 Gels 7!9/11 CL- 30000 FC 1 SOL 8 SD Tr OIL 2I90 MBL 5.0 pH 9.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 28 @ 6744 (TG) 3@ (while circ) N/A TRIP GAS 28 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) pe @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole with shuttle logging assemtiy on 5" drill pipe from 2239' to 4009'. Perform pressure check on tool assembly (263psi at 2 bbis/min, 573psi at 4 bbls/min, 1024psi at 6 bbis/min). Continue running in hole to 6534'. Perform pressure check on tool assembly (330psi at 2 bblslmin, 661 psi at 4 bbls/min, 1041 psi at 6 btils/min). Continue running in hole to 6739'. Wash down through 5' of fill from 6739' to 6744'. Circulate bottoms up. Pump around HI-Vis sweep. Record 28 units of trip gas. Circulate hole clean. Stop circulating and pull out of the hole from 6744' to 6596' (to allow space for tool deployment below base of 3 1/2" drill pipe). Drop and pump down Messenger. Engage, push out and deploy shuttle DAILY logging tools to 6697'. Pressure up until the seating plug is sheared. Check for flow. Pump dry job. Pull out of hole (at 30' per minute) logging up ACTIVITY W~th shuttle deployed Quad-Combo tools from 6697' to surface. Stand back 5" HWDP while pulling out to 308'. Break and lay down 3 1l2" drill pipe. SUMMARY Remove neutron sources. Break, lay down and load off Weathertord Logging Service logging toots. Break and load off running equipment (upper and lower latches, float, CLS, stabilizer, reamer). Clear rig floor. Pufl wear bushing. Wash up and clean rig floor. Pickup and dummy run landing joint. Clean cellar. Stage 7" rems and ~eady tools for changeout. Change pipe rams to 7" and test to 250psi Low / 2500psi High. Rig up stabbing board. Change out saver sub and grabber dies. Fiz broken bolt on die keeper. Adjust torque tutre. Change bails and elevators. Rig down rig pipe tongs. Rig up Weatherford tongs, slips and elevators. Rig up fill-up hose. Stage centralizers. Hold preyob meeting on procedures and safety for running casing. Run in hole with 7" casing as per Marathon program. Pick up, make up and run in shoe joint, second joint and float collar. Check float equipment EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva file://C: \Marathon\Morning%20Reports\20070125.htm 1/26/20Q7 • ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~CH Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 26, 2007 DEPTH 6744 PRESENT OPERATION Laying down 5" drill pipe TIME 24:00 YESTERDAY 6744 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 6744 /4378 TVD MVV 9.7 VIS 56 PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 22 @ 6730 (TG at 7" shoe) 1@ Displacing w/ mud N/A TRIP GAS 22 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(GS) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGYlREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish checking float equipment. Continue run~ing in hole with 7" casing to 2440'. Change out elevators. Rig up Lafluer fiil-up tool. Continue running in hole with 7" casing. Rig up cementing lines while running in hole. Pick up landing joint. Land 7" casing on hangar at 6730' (shoe). Rig down Weatherford casing running equipment. Install BJ cementing head with top and bottom plugs pre-installed. Circulate and condition mud for 1 t/2 circulations total (at 140spm, 800psi, 270gpm). Record 22 units of trip gas. Hold pre-job meeting on procedures and safety for cement job. Transfer mud from pit to Hanson Tank. Switch to BJ pumping unit. Pump 5 bbis of water ahead to fill cementing lines. Test lines to 3500psi. Mix and pump 33 bbis of 10.Oppg MCS-4 spacer. Drop first (bottom) plug. Batch up and pump 113.61 bbis of 12.5ppg cement lead slurry (with 258 DAILY sacks of Class G cement to 84.74 bbls mix water plus chemical additives for 2.47 cu ftlsack yield) and tfien pump 33.25 tibls of 15.8ppg cement tail ACTIVITY slurry (with 160 sacks Class G cement to 19.01 bbls mix water plus chemical additives for L17 cu ft/sack yield). Finish pumping cement. Drop SUMMARY second (top) plug. Pump 5 bbls water to kick out plug. Switch over to rig pumps. Displace cement with 247 btils of mud. Total displacement is 254.03 bbls. Pump at slower rate after 230 bbls away. Bump plug with 1000psi over displacement pressure. Bleed off. Check floats. Cement in place. There was no lost circulation and approximately 20 bbls of spacer observed at surface. Treat retum pit with citric acid. Wait on cement. Lay down landing joint. Blow down, rig down and lay down cementing head and cementing lines. Clear rig floor. Install pack-off and begin pressure test. Test failed to pressure up. Pull pack-off and fix leaking seal. Reinstall packoff and successfully test to 5000psi for 10 minutes. Rig down stabbing board. Adjust torque tube. Change out bails. Install elevators, pipe tongs and spinners. Clear and clean rig floor. Rig up and prepare for laying down 5" drill pipe from derrick. Start cleaning pits. Begin laying down 5" drill pipe. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva • file://C: \Marathon\Morning%20Reports\20070126.htm 1/27/2007 • ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 27, 2007 DEPTH 6744 PRESENT OPERATION Pulling and standing back 4" drill pipe TIME 24:00 YESTERDAY 6744 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TOR~UE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDlAVG PENTANE(G5) @ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue laying down 5" drill pipe. Finish cleaning pits and begin mixing new Flo-Pro mud. Change out upper pipe rams from 7" to 2 7/8" by 5 1/2" variable. Change out lower pipe rams from 5" to 4". Pull wear bushing. Rig up test equipment. Install test joint. Test all BOPE to 250psi Low / DAILY 2500psi High (annular, upper and lower pipe rams, blind rams, inside and outside kill valves, check valve, manual choke, floor valve, dart valve, ACTIVITY upper and lower Topdrive IBOPs and CMVs 1-12). Remove piece of inetal in lower pipe rams and retest. Do accumulator performance test. SUMMARY Remove test joint. Rig down test equipment. Install wear bushing. Test 9 5/8" casing to 2500psi for 30 minutes. Rig up floor and make preparations for picking up 4" drill pipe. Hold pre-job meeting on safety and ptocedures for picking up drill pipe. Pick up, drift, make up and run in hole 120 joints bf 4" drill pipe. Pull out hole standing back 4" drill pipe. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva • file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /28/2007 . ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 28, 2007 DEPTH 6764 PRESENT OPERATION Performing Leak Off Test TIME 23:10:30 YESTERDAY 6744 24 HOUR FOOTAGE 20 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 4.74 x 7 RWD HCC HCM305 7008752 2x11, 3x12 6744 20 0.46 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 141.9 @ 6746 15.0 @ 6755 71.8 43.0 FT/HR SURFACE TORQUE 2224 @ 6752 1673 @ 6745 21592 2107.7 AMPS WEIGHT ON BIT 9 @ 6750 5 @ 6745 8.4 7.8 KLBS ROTARY RPM 71 @ 6758 32 @ 6748 56.8 61.0 RPM PUMP PRESSURE 2020 @ 6763 1477 @ 6745 1906.7 2008.2 PSI DRILLING MUD REPORT DEPTH 676414394 TVD MW 9.7 VIS 56 PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 6745 4 @ 6760 13.3 TRIP GAS 50 (Shoe gas) CUTfING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 7306 @ 6745 978 @ 6759 2668.6 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(GS) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone PRESENT LITHOLOGY ..........SAND/SANDSTONE/TUFFACEOUS SANDSTONE.......... Finish pulling out of the hole standing back 4" drill pipe. Pick up, make up, orient and run in hole directional bottom hole assembly (to 130'). Troubleshoot Topdrive robotics (elevators we~e opening and closing erraticaliy). Solve Topdrive robotic problem. Contfnue picking up and running DAILY ~n hole with tiottom hole assembly to 256'. Pick up, make up, drift and run in hole jars and HWDP. Do shailow test of MWD tool. Pick up, make up, ACTIVIN drift and run in hole 4" drill pipe to 2444'. Rack and tally additional loads of 4" drill pipe. Continue to pick up, make up, drift and run in hole with 4" SUMMARY drill pipe to 4147'. Rack and tally remaining loads of 4" drill pipe. Continus to pick up, make up, drift and run in hole with 4" drill pipe and tag up on float at 6655'. Drill out float collar and remaining shoe iract (cement, shoe, rathole) from 6655' to 6744'. Drill 20' of new hole from 6744' to 6764'. Circulate bottoms up. Perform Leak Off Test (with 9.7ppg mud) to 18.4ppg EMW (maximum at break over). Pressure held at 16.1 EMW after 10 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva • file: //C : \Marathon\Morning%20Reports\20070128 . htm 1/29/2007 ~ u Daily Report Page 1 of 1 Marathon Oil Company "~~~~~h~ku~~t DAILY WELLSITE REPORT E1~p~H Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 29, 2007 DEPTH 7329 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6764 24 HOUR FOOTAGE 565 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6802 19.9 341.0 4432.28 SURVEY DATA 6927 18.9 340.5 4550.07 7053 15.5 339.2 4670.51 7179 14.2 341.2 4792.34 7368 7.7 336.7 4977.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 4.75 x 7 RWD HCC HCM305 7008752 2x11 3x12 6744 585 16.37 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 195.4 @ 7109 4.0 @ 6801 64.9 96.7 FT/HR SURFACE TORQUE 2341 @ 6992 0 @ Sliding 1877.1 1893.6 AMPS WEIGHT ON BIT 49 @ 6794 1 @ 7053 9.2 4.8 KLBS ROTARY RPM 89 @ 7228 0 @ Sliding 43.6 68.0 RPM PUMP PRESSURE 2828 @ 7240 1263 @ 6795 1785.8 2048.7 PSI DRILUNG MUD REPORT DEPTH 7297 / 4908 ND MW 9.1 VIS 52 PV 14 YP 24 FL 4.1 Gels 11/14/16 CL- 29500 FC 1 SOL 10.0 SD 025 OIL 4186 M8L 2.5 pH 9.7 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 57 @ 6844.00000 2 @ 7201.00000 14.1 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 13736 @ fi883.00000 125 @ 7027.00000 2911.4 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 6/ 17 PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGYIREMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone. Minor Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash, CoallCarbonaceous Shale. PRESENT ,,,.,,.;,,SAND/SANDSTONElfUFFACEOUS SANDSTONE.......... LITHOLOGY DAILY ACTIVITY Mix spacer. Prepare to displace mud. Pump spacer ahead. Drill from 6764' to 6793', displacing old Flo-Pro mud with new 9.1 ppg Flo-Pro SUMMARY mud on the fly. Continue to drill (rotating and sliding) from 6793' to 7329'. EPOCH PERSONNEL ON BOARD DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva • file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /30/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT E~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / Rowland Lawson DATE Jan 31, 2007 DEPTH 8243 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7329 24 HOUR FOOTAGE 914 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7431 SURVEY DATA 7.5 340.2 5040.33 7745 p,g 297.9 4609.30 8249 2.1 302.7 5857.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B!C PULLED 3 4.75 x 7 RWD HCC HCM305 7008752 2z11 3x12 6744 1499 34.65 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.8 @ 7517 5.3 @ 8162 80.5 22.8 FT/HR SURFACE TORQUE 2237 @ 7516 0 @ Sliding 2050.0 2023.4 AMPS WEIGHT ON BIT 48 @ 7675 1 @ 8119 11.3 3.5 KLBS ROTARY RPM 91 @ 7811 0 @ Sliding 80.3 81.0 RPM PUMP PRESSURE 2558 @ 7968 1514 @ 8159.00000 2001.5 1670.2 PSI DRILLING MUD REPORT DEPTH 8242 / 5850 MW 9.2+ VIS 48 PV 10 YP 24 FL 3.9 Gels 9/12/14 CL- 30000 FC 1 SOL 6.5 SD 0.025 OIL 4/90 MBL 5.0 pH 10.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 123 @ 8177 4 @ 7946 25.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 24775 @ 8177 9g5 @ 7946 5180.1 CONNECTION GAS HIGH ETHANE (C-2) 5 @ 7879 0 @ 0.1 AVG PROPANE (C-3) @ @ BUTANE (C-4) @ @ CURRENT CURRENT BACKGROUNDIAVG 8/26 PENTANE(G5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOlOGY Major Sand/Sandstone/Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Shale, Coal/Carbonaceous Shale Volcanic Ash Minor Tuffaceous Siltstone, Calcareous Tuff. , . PRESENT ,,,,,., SAND/SANDSTONE/TUFFACEOUS SANDSTONE.. LITHOLOGY ........TUFFACEOUS CLAYSTONE. .........COAL.......... DAILY ACTIVITY SUMMARY Drill (rotating and slitling) from 7329' to 8243'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 1 /31 /2007 `_~ ~ Daily Report Page 1 of 1 Marethon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~+~~~ ~ Grassim Oskolkoff #5 , REPORT FOR Rowland Lawson / Dan Byrd DATE Jan 31, 2007 DEPTH 8640 PR ESENT OPERATION Driliing TIME 24:00 YESTERDAY 8243 24 HOUR FOOTAGE 397 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8375 2.5 304.4 5983 02 SURVEY DATA 8501 0.8 201.6 . 6108.98 8626 1.8 176.6 6233.94 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIB/C PULLED 3 474 x 7 RWD HCC HCM305 7008752 2x11 3x12 6744 1896 49.21 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 114.9 @ 8619 2.5 @ 8511 45.8 50.6 FT/HR SURFACE TORQUE 2691 @ 8545 0 @ Sliding 1733.0 2263.36 AMPS WEIGHT ON BIT 49 @ 8433 1 @ 8283.00000 5.8 4A KLBS ROTARY RPM 106 @ 8630 0 @ Sliding 62.2 90.9 RPM PUMP PRESSURE 3137 @ 8545 1473 @ 8434 1843.3 2087.2 PSI DRILLING MUD REPORT DEPTH 8618 / 6226 TVD MW 9.35 VIS 49 PV 11 YP 22 FL 4.4 Gels 9/14/ CL- 32000 FC 1 SOL 7.0 SD 0.25 OIL 4/89 MBL 5.0 pH 10.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH lOW AVERAGE DITCH GAS 91 @ 8600 3 @ 8543 21.3 TRIP GAS CUTTING GAS @ @ WIPER GAS 228 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 17969 @ 8600 699 @ 8543 4511.1 CONNECTION GAS HIGH ETHANE (G2) 7 @ 8389 0 @ 0.1 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 20 / 37 PENTANE (C-5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone, Tuffaceous Claystone, Coal/Carbonaceous Shale. Minor Volcanic Ash, Tuffaceous Siltstone, Tuffaceous Shale, Calcareous tuff. PRESENT ,,,,,,,,,SAND/SANDSTONE/TUFFCEOUS SANDSTONE..........TUFFACEOUS CLAYSTONE.......... LITHOLOGY DAILY ACTIVITY Drill (rotating and sliding) from 8243' to 8617'. Circulate bottoms up. Monitor well. Pump dry job. Pull out hole to 7" shoe (6700') on wiper SUMMARY trip. Service rig (lube carrier, Topdrive, block and crown). Run back in hole from 6700' to 8550'. Wash down from 8550' to 8617'. Drill (rotating) from 8617' to 8640'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\m... 2/ 1 /2007 ~ i Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ E~`~~~ Grassim Oskolkoff #5 REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 01, 2007 DEPTH 9373 PRESENT OPERATION Pulling out of hole for new bit TIME 24:00 YESTERDAY 8640 24 HOUR FOOTAGE 733 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8750 0.9 SURVEY DATA 235.6 6357.91 9005 1.0 289.9 6612.88 9258 2.2 326.4 6865.78 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 4.75 x 7 RWD HCC HCM305 7008752 2x11 3x12 6744 9373 3029 67.01 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 132.2 @ 9197 3.2 @ 9344 63.5 5.4 FT/HR SURFACE TORQUE 2620 @ 9217 2003 @ 8681 2320.6 2185.5 AMPS WEIGHT ON BIT 12 @ 9345 2 @ 9185 5.0 8.0 KLBS ROTARY RPM 106 @ 9150 59 @ 8831 82.0 79.6 RPM PUMP PRESSURE 2542 @ 9229 1730 @ 9311 2142.8 2364.5 PSI DRILLING MUD REPORT DEPTH 9310 / 6918 ND MW 9.4 VIS 52 PV 11 YP 24 FL 4.8 Gels 11/15/ CL- 31000 FC 1 SOL 7.0 SD 0.1 OIL 5/88 MBL 6.0 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 322 @ 8754 14 @ 9126 63.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 64379 @ 8754 2807 @ 9126 12739.4 CONNECTION GAS HIGH 188 ETHANE (C-2) 74 @ 8755 0 ca 7.1 AVG 95 PROPANE (C-3) 11 @ 8755 0 @ 1.0 CURRENT 101 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ ARBON 4 Fair to Poor Shows in massive sand intervals with gas over 100 units. SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 8745-8780, 8810- General massive sands that fine upward, matrix and 322 Max, 25 SD/SSlTuffSS/Conglomerate = med It gry, vfn-cgl dom fn- 8822, 9182- grain supported by mix of volcanic ash,tuffaceous clay background pre- , med, mod w-mod srtd if fn, poor if coarser; ash/cly spprt 9150,9270-9350 and calcite cementation that have locally "cleaned up" interval, 136 Avg , some calc gr spprtd, lithic qtz arenite-lithic arenite; good Por and display apparent fair visible porosity through interval inferred from ease that it disaggregates. LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone, Tuffaceous Claystone, Volcanic Ash, Coal/Carbonaceous Shale. Minor Tuffaceous Siltstone Conglomeratic Sand/Conglomerate, Tuffaceous Shale, Calcareous Tuff , PRESENT CONGLOMERATE..........COAL.......... LITHOLOGY """"° DAILY ACTIVITY SUMMARY Drill (rotating) from 8640' to 9373'. Circulate bottoms up. Pull out of hole. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C: \Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20 Wells\m... 2/2/2007 ~ C J~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT E~~~~ Grassim Oskolkoff #5 REPORT FOR Rowland Lawson ! Dan 8yrd DATE Feb 02, 2007 DEPTH 9385 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 9373 24 HOUR FOOTAGE 12 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA gp5g 2.2 326.4 6855.78 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 475 x 7 RWD HCC HCM305 7008752 2x11 3x12 6744 9373 3029 67.01 8-8-RO-A-X-2/16-NO-PR Bit failure 4 4.75 x 7 RWD HCC HCM404 7003484 4x11 9373 12 0.40 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 56.2 @ 9383 21.2 @ 9385 38.6 21.2 FT/HR SURFACE TORQUE 2269 @ 9377 0 @ Sliding 1782.7 0 AMPS WEIGHT ON BIT 29 @ 9385 2 @ 9382 12.0 4.9 KLBS ROTARY RPM 86 @ 9381 0 @ Sliding 84.0 Sliding RPM PUMP PRESSURE 2042 @ 9379 1730 @ 9376 2020.4 1735.0 PSI DRILLING MUD REPORT DEPTH 9385 / 6993 ND MW 9.5 VIS 49 PV 11 YP 23 FL 4.8 Gels 10/14/ CL- 30000 FC 1 SOL 8.0 SD 0.1 OIL 5/87 MBL 6.0 pH 9.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 38 CUTTiNG GAS @ 9374 25 @ 9384 33.1 TRIP GAS 535 ~ °~ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 7745 @ 9374 5088 @ 9384 6621 CONNECTION GAS HIGH ETHANE (C-2) t @ 9374 0 @ 0.2 AVG PROPANE(G3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 5/ 32 PENTANE(G5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone, Conglomeratic Sand/Conglomerate, Coal PRESENT LITHOLOGY ..........SAND/SANDSTONE/TUFFACEOUS SANDSTONE..........CONGLOMERATIC SAND/CONGLOMERATE.......... Puil out of hole to shoe. Do 5 minute flow check. Continue pulling out of hole. inspect bit and other directional tools. Break and lay down directional tools (bit, RWD, mudmotor, 2 lead collars, stabilizer, MWD collar). Pick up and make up all new directional tools (less 1 lead collar). DAILY Orient motor to MWD collar. Note that stand made up with flex collar fell out of the elevators while preparing to run in. Investigate incident. Repair ACTIVITY and correct problem. Run bottom hole assembly in hole to first stand of drill pipe. Attempt surface test of MWD. Observe swivel wash pipe leaking. SUMMARY Change out wash pipe. Surface test MWD tools. Continue running in hole to 6700'. (Stop and fill pipe on way in at 4515' and 6700'). Hold pre-job meeting on cut and slip procedu~es. Cut and slip drill line. Hang block and Topdrive. Change over brake hands and control line to carrier. Remove hydreulic pump from electric motor on carrier. Troubleshoot hydraulics on #2 carrier motor. Work on man rider controls. Service carrier, Topdrive, block and crown. Continue running in hole from 6700' to 9270'. Wash and ream from 9270' to 9273'. Drill (rotating and sliding) from 9273' to 9285'. EPOCM PERSONNEL ON 80ARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file: //C : \Marathon\Morning%20Reports\20070202. htm 2/3/2007 ~~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ ~~~~~ Grassim Oskolkoff #5 REPORT FOR Rowland Lawson / Dan By~d DATE Feb 03, 2007 DEPTH 9875 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 9385 24 HOUR FOOTAGE 490 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9321 3.1 327.4 6928.72 SURVEY DATA g5~2 2.6 334.9 7179.48 9822 4.3 328.2 7429.01 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 4.75 x 7 RWD HCC HCM404 7003484 4x11 9373 502 16.32 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 85.8 @ 9710 3.7 @ 9402 42.1 49.1 FT/HR SURFACE TORQUE 2773 @ 9493 0 @ Sliding 1558.6 2764.5 AMPS WEIGHT ON BIT 27 @ 9386 1 @ 9618 3.5 2.9 KLBS ROTARY RPM 95 @ 9515 0 @ Sliding 78.3 64.6 RPM PUMP PRESSURE 2518 @ 9720 1581 @ 9387 2112.8 2435.3 PSI DRILLING MUD REPORT DEPTH 986517472 ND MW 9.4 VIS 49 PV 11 YP 24 FL 3.8 Gels 11/16/ CL- 29000 FC 1 SOL 7.0 SD 0.1 OIL 5/88 MBL 6.0 pH 9.6 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 128 @ 9842 6 @ 9422 23.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 25742 @ 9842 1231 @ 9422 4676.4 CONNECTION GAS HIGH 75 ETHANE (C-2) 26 @ 9842 0 @ 0.2 AVG 32 PROPANE (C-3) 5 @ 9842 0 @ 0.0 CURRENT 10 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 8/ 25 PENTANE(G5) @ @ HYDROCARBON SHOWS NONE (All gases over 100 units are coals). INTERVAL LITHOLOGYlREMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone, Tuffaceous Claystone, Volcanic Ash, Coal/Carbonaceous Shale, Carbonaceous Tuffaceous Claystone. Minor Tuffaceous Siltstone, Tuffaceous Shale, Conglomeratic Sand/Conglomerate. PRESENT CARBONACEOUS SHALE. LITHOLOGY """"° .........SAND/SANDSTONE/TUFFACEOUS SANDSTONE..... ..... DAILY ACTIVITY Drill (sliding and rotating) from 9385' to 9490'. Reinstall the drive line for the hydraulic pump of the #2 carrier engine. Drill (rotating) SUMMARY from 9490' to 9875'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file: UC: \Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20 Wells\m... 2/4/2007 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPOF2T ~ ~~~~~ Grassim Oskolkoff #5 REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 04, 2007 DEPTH 10384 PRESENT OPERATION Pulling out of hole TIME 24:00 YESTERDAY 9875 24 HOUR FOOTAGE 509 CASING INFORMATION 7" @ 6730' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9952 5.1 328.9 7558.58 SURVEY DATA 10074 6.0 326.4 7680.00 10202 6.9 325.9 7807.19 10330 7.7 323.9 7934.15 10384 (Projection) 8.0 323.9 7987.65 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JE7S IN OUT FOOTAGE HOURS T!B/C PULLED 4 4.75 x 7 RWD HCC HCM404 7003484 4x11 9373 10384 1011 30.95 In Hole TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 87.7 @ 10074 9.0 @ 10340 41.9 29.3 FTIHR SURFACE TORQUE 3181 @ 10369 2471 @ 10156 2815.4 2494.4 AMPS WEIGHT ON BIT 8 @ 10183 1 @ 10341 3.5 3.1 . KLBS ROTARY RPM 77 @ 10370 37 @ 10307 63.0 59.1 RPM PUMP PRESSURE 2868 @ 10183 1801 @ 10341 2239.2 1898.9 PSI DRILLING MUD REPORT DEPTH 10384 / 7988 ND MW 9.5 VIS 42 PV 11 YP 19 FL 3.8 Gels 8/12/17 CL- 30000 FC 1 SOL 8.0 SD Tr OIL 4.5/87.5 MBL 5.0 pH 10.0 Ca+ Tr CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 109 @ 9971 11 @ 10274 26.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 81 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 21789 @ 9971 2301 @ 10250 5346.0 CONNECTION GAS HIGH 32 ETHANE (C-2) 21 @ 9907 0 @ 1A AVG 19 PROPANE (C-3) 4 @ 9907 0 @ 0.2 CURRENT 24 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(GS) @ @ HYDROCARBON SHOWS NONE (All gases over 100 units are coals). INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Major Sand/Sandstone/Tuffaceous Sandstone, CoallCarbonaceous Shale, Tuffaceous Claystone, Carbonaceous Tuffaceous Claystone, Volcanic Ash. Minor Tuffaceous Siltstone, Conglomeratic Sand, Conglomerate. PRESENT ,,,.....,,TUFFACEOUS SANDSTONE.......... LITHOLOGY DAILY ACTIVITY Drill (rotating) from 9875' to 10384'. (Total Depth of well). Circulate bottoms up. Pump sweep around. Circulate hole clean. Monitor well. Pump SUMMARY dry job. Pull out of hole from 10384' to 9114' on wiper trip. Run back in hole to 10384'. Circulate bottoms ups. (Record 81 units of wiper gas). Circulate hole clean and condition mud. Monitor well. Pump dry job. Pull out of hole (to 9300'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20 Wells\m... 2/5/2007 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ E~pCH Grassim Oskolkoff #5 REPORT FOR Rowland Lawson / Dan Byrd DATE Feb 05, 2007 DEPTH 10384 PRESENT OPERATION Running in hole with shuttle tool TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 9730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/BIC PULLED 4 4.75 x 7 RWD HCC HCM404 7003484 4 x 11 9373 10384 1011 30.95 1-4-OC-G-X-4/16-BT-TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTlHR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.5 VIS 44 PV 10 YP 21 FL 4.0 Gels 7/11I15 CL- 30000 FC 1 SOL 8.0 SD Tr OIL 5188 MBL 5.0 pH 9.9 Ca+ Tr CCI MWD SUMMARY INTERVAL TO 700LS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE(C3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue pulling out of hole SLM (from 9300'). Break, lay down and load off all directional tools. Hold pre-job meeting on procedures and safety for wireline logging. Rig up N/eathertord Wireline Service. Pick up and make up Quad-Combo wireline logging assembly. Load sources. Run DAILY logging assambly in hole and hit bridge at 8665'. Unable to work past bridge. Log up from 8665' to 6200'. Pull out of hole with wireline assembly. ACTIVITY Unload sources. Lay down wireline logging tools. Hold pre-job meeting on procedures and safety for handling Weatherford's shuttle logging SUMMARY system. Load, pick up and make up reamer, CLS, stabilizer, 5 joints of 3 1/2" drill pipe and lower latch. Pick up and make up inner string of Weathertord's Quad-Combo logging tools, upper latch and float. Install, seat and latch up logging assembly in 3 112 drill pipe. Run shuttle logging assembly on 5" HWDP in hole to 826'. Pressure check tool assembly . Continue running shuttle in hole on 5" drill pipe to 4042'. Pressure check tool assembly . Continue running shuttle in hole to 4990'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 REPORT BY Craig Silva ~ file://C: \Documents%20and%20 Settings\EpochAdmin\My°/o20Documents\My%20 Wells~m... 2/6/2007 Daily Report ~ ~ Page 1 of 1 Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR Rowland Lawson / Dan Byrd DATE Feb O6, 2007 DEPTH 10384 PRESENT OPERATION Cleaning up after stripping logging tools out 3 1/2" drill pipe TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.5 VIS 43 PV 11 YP 20 FL 4.2 Gels 6/8/ CL- 30000 FC 1 SOL 8.0 SD 0 OIL 5I88 MBL 5A , pH 10.0 Ca+ Tr CCI MWD SUMMARY INTERVAL TO TOOLS ` GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 410 @ TG at 10384 21 @ before pump shut down N/A TRIP GAS 410 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (G1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running shuttle in hole on 5" drill pipe from 4990' to 7036'. Flow check tool assembly. Continue running shuttle in hole from 7036'. Break circulation, wash, ream and rotate through bridges tagged at 9712' and 10218' while continuing to run in. Tag bottom at 10384'. Circulate bottoms up and continue circulating to clean and condition mud and hole. Record 410 units of trip gas. Pull up hole to 10247'. Drop and pump down Messenger dart to engage, release, push out and deploy shuttle logging tools. When pressuring up to shear the seating plug, the tool string appeared to start deployment, but there was no quick reduction of pressure to indicate that shear out had occurred. Instead, the pressures continued increasing to over 4000psi before the pumps were shut down and the string pressure was bled back. Pull up 1 more stand. Begin DAILY Pumping to attempt shear out, but the pressure increased to over 4200psi almost immediately and would not release. Stop pumping and bleed off ACTIVITY Pressure. Check for flow. Shuttle tool depth set at 10348' (if there was full deployment). Pull out of hole (at 30' per minute) logging up with Quad- SUMMARY Combo logging tools from 10348' to 5872'. Pull out of hole at normal rate from 5872' to 5147'. Drop 2" rabbit on wire. Continue pulling to out of hole to top of bottom hole assembly at 858'. Pull and stand back 4" HWDP and encounter rabbit 1 stand above jars at 393'. Pull rabbit and begin pulling and checking each joint of HWDP, jars and 3 1/2" drill pipe as it is pulled until the top of logging tools is found. Logging assembly had sheared and partially deployed downward, but lodged in the string stabilizer and never made it past the CLS and reamer. Rig up the hang off plate for the logging tools. Begin to strip out logging tools from 3 1/2" drill pipe. Remove radioactive sources. Break and lay down enough tools and 3 1!2" drili pipe to pull the remaining drill pipe out of the hole, cover the well at the rotary table and break down the remaining tools above the rig floor. Continue to strip out, break and lay down the logging tools and last components of pipe assembly. Break and lay down reamer and then lay down string stabilizer with 12' section of the induction logging tools stuck in it. Blow down mud line and clean up rig floo~. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3425 RW: 435 Consulting: 1100 REPORT BY Craig Silva • file://C: \Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20Wells\m... 2/7/2007 ~ ~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT E1~~~H Grassim Oskolkoff #5 REPORT FOR John Nicholson / Dan Byrd DATE Feb 07, 2007 DEPTH 10384 PRESENT OPERATION Laying down shuttle assembly TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATfON INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ ~ PS~ DRILLWG MUD REPORT DEPTH 10384 / 7988 ND MW 9.3+ VIS 43 PV 7 YP 18 FL 4.6 Gels 6/11/13 CL- 27500 FC 1 SOL 8.0 SD Tr OIL 4/88 MBL 5.0 pH 10.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 284 @ TG at 10384 12 @ before pump shut down TRIP GAS 284 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Service rig, Prepare logging toots. Hold pre-job meeting on procedures and safety for handling Weatherford Logging Services' shuttle logging system. Pick up and make up reamer, CLS, stabilizer, 5 joints of 3 1/2" drill pipe and lower latch. Pick up and make up inner string of WLS Quad- Combo logging tools, upper latch and float. Install, seat and latch up logging assembly inside 3 1/2" drill pipe. Run shuttle logging assembly on 5" HWDP in hole to 858'. Continue running shuttle in hole on 5" dritl pipe, stopping to flow test tool assembly at 1040', 4069', 7031' and 9990' on way DAILY in. Run shuttle in hole and tag bridge at 10300'. Make up Topdrive and wash to bottom at 10384'. Circulate bottom up and continue to circulate ACTIVITY hole clean and condition mud before logging pass. Record 284 units of trip gas. Pull up hole to 10243'. Drop and pump down Messenger dart to SUMMARY engage assembly. Pressure up until the seating plug is sheared and inner string released. Push out and deploy shuttle logging assembly to 10344'. Check for flow. Pump dry job. Pull out of hole at controlled rate of 30' per minute logging up with Quad-Combo from 10344' to 5874'. Pull out of hole at normal rate from 5874' to surface. Stand back 4" HWDP and ja~s while pulling out. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and load off Weatherford Logging Service logging tools. Break and load off running equipment (upper and lower latches, float, CLS, stabilizer, reamer). Clear rig floor. Prepare to rig up and run wireline log. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2812 RW: 435 Consulting: 1100 REPORT BY Craig Silva file: //C: \Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\m... 2/8/2007 ~ C~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~ ~~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson ! Dan Byrd DATE Feb 08, 2007 DEPTH 10384 PRESENT OPERATION Running in hole for clean out run TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 6.125 Mill tooth bit 10384 Clean out run only DRiLLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ ~ PS~ DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.3+ VIS 43 PV 7 YP 17 FL 4.5 Gels 6/8/10 CL- 27000 FC 1 SOL 7.5 SD Tr OIL 4/89 MBL 5.0 pH 10.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 9@ Brief circ RIH 1@ pump shut down NIA TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUNDIAVG N/A PENTANE(G5) @ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish laying down shuttie logging tools. Hold pre-job meeting with Weatherford Wireline Service on safety and procedures for handling wireline tools. Rig up WWS. Pick up arid make up wireline MFT logging assembly. Run MFT tool in hole to shoe and wait on selection of pressure points. Receive selections and continue running in hole with MFT tool. Tag tiridge with MFT assembly at 8370'. Unable to get past bridge after 15 DAILY attempts to break through. Pull MFT tool up to 7784'. Log upward, doing 32 pressure tests from 7784' to 6799'. Finish testing and pull logging ACTIVITY assembly out of hole. Lay down logging tools. Rig down WWS. Refabricate carrier floor for plumbing new electric hydraulic pump. Fix leak on #1 SUMMARY Denison. Replace ball valve in gun lines in pit. Pick up and make mill tooth bit and bit sub to 4" HWDP (plus jars) for clean out run. Run clean out assembly in hole to 3385'. Fill pipe (at 200spm, 555psi). Continue running in hole to 6700' (near shoe). Fill pipe (at 200spm, 900psi). Hold pre-job meeting on procedures and safety for slipping drill line. Slip drill line from 21 wraps to 26 wraps. Continue running in hole with clean out assembly to 8455' and start taking weight. Wash down from 8455' to 8488'. Continue running in hole from 8488' to 9181'. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2812 RW: 435 Consulting: 1100 REPORT BY Craig Silva file://C: \Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20 Wells\m... 2/9/2007 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT E~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Dan Byrd DATE Feb 09 2007 DEPTH 10384 PRESENT OPERATION Running in 4 1/2" Liner TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 5RR (old bit) 6.125 HTC STX-1 5043882 3x20 10384 10384 0 0 NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.4 VIS 43 PV 8 YP 18 FL 4.8 Gels 7/9/11 CL- 28000 FC 1 SOL 7.5 SD Tr OIL 4/89 MBL 5.0 pH 9.9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 232 @ TG at 10384 2@ at pump shut down N!A TRIP GAS 232 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ Cp CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole from 9181' with clean out assembly and tag bridge at 10225'. Wash through bridge. Continue running in hole to 10354'. Wash from 10354' to bottom at 10384'. Circulate bottoms up. Record 232 units of trip gas. Pump sweep around. Continue circulate, clean and DAILY condition hole. Check for flow. Pump dry job. Pull out of hole with clean out assembly standing back 107 stands. Continue pulling out of hole ACTIVfTY laying down remaining 4" drill pipe, 4" HWDP, jars, bit sub and bit. Pull wear ring (9" ID). Set hanger with landing joint and test 2 7/8" by 5 1/2" SUMMARY rams to 250psi Low / 2500psi High. Pull hanger and landing joint. Set wear ring. Clear rig floor and set up Weathertord for running 4 1/2" liner. Change links and elevators. Switch out fill-up line. Troubleshoot Weatherford power unit. Hold pre-job meeting on safery procedures for running liner. Run in hole with 4 1l2" liner as per Marathon program. Pick up and make up shoe joints and run in hole. Continue running in hole with 4 1/2" liner. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 2/ 10/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company Ni~i~~nikunit DAILY WELLSITE REPORT ~+~~~,~ Grassim Oskolkoff #5 REPORT FOR John Nichoison / Dan Byrd DATE Feb 10, 2007 DEPTH 10384 PRESENT OPERATION Preparing to pull out of hole with 4 1/2" liner TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED ORILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 ND MW 9.4 VIS 47 PV 9 YP 20 FL 4.6 Gels 9/11/13 CL- 26000 FC 1 SOL 7.5 SD Tr OIL 5/88 MBL 5.0 pH 10.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 108 @ TG at 10366 9@ at pump shut down NIA TRIP GAS 108 CUTfING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LfTHOLOGYlREMARKS GAS DESCRIPTION ~ LITHOLOGY PRESENT LITHOLOGY Finish running in hole with 4 1/2" liner as per Marathon program. Change bails and install elevators. Pick up 5" by 7" flex lock hanger. Break circulation and circulate liner volume. Run in hole with liner assembly to 6655', filling ever stand with the fill-up hose. Pickup, torque up and then lay down cementing head. Circulate bottoms up and and continue to circulate and condition at 6655'. Continue running liner assembly from 6655' to 7343'. Break circulation and briefly circulate at 7343'. Continue running in hole with liner assembly. Tag bridge at 7690'. Wash and ream from DAILY 7690' to 7723'. Continue running in hole from 7723' to 8919'. Break circulation and briefly circulate at 8919'. Continue running liner in hole from ACTIVITY 8919' to 9520'. Circulate bottoms up at 9520'. Continue running liner in hole from 9520' to 10305'. Break circulation and wash down from 10305' to SUMMARY 10366'. Attempt to work liner to bottom at 10366', but hole packing off (apparently due to coal in the well bore). While working pipe and circulating to wash the well bore ahead of the liner, the hanger is prematurely set at 10331'. Circulate at varying pump rates to find and establish enough flow to perform a cement job. All attempts to establish a sufficient flow rate are unsuccessful. Return flow rates a~e very inconsistent due to packing-off problems. Pull liner up the hole from 10331' to 10305' (with 40K overpull and pick-up weight of 190K). Holtl pre-job meeting on safety and procedures for pulling 4 1/2" liner. Mix and pump dryjob. Blow down mud pumps and lines. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 2/ 11 /2007 ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Dan Byrd DATE Feb 11, 2007 DEPTH 10384 PRESENT OPERATION Picking up 4" DP and running in hole TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 l 7988 ND MW 9.4 VIS 45 PV 9 YP 19 FL 4.8 Gels 8/10/12 CL- 30000 FC 1 SOL 8A SD Tr OIL 5/87 MBL 5.0 pH 9.7 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH lOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ AVG PROPANE(C3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LiTHOLQC,Y PRESENT LITHOLOGY Pull out of hole standing back 4" drill pipe to 9477'. Repair electric cable for derrick Iights. Continue pulling and standing back 4" drill pipe out of DAILY hole to 3874'. Break off and lay down hanger. Change bails and prepare rig for laying down liner. Rig up power tongs. Pull out of hole from 3844' ACTIVITY laying down 4 1/2" liner. Rig down Weatherford liner running tools. Change links and elevators. Clear rig floor. Rig up to pick up clean out SUMMARY assembly. Strap, pick up and run in hole bottom hole assembly to 531' for clean out run. Rabbit, pick up off catwalk, make up and run in hole 67 joints of 4" drill pipe to 2642'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 2/ 12/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company Ninilchik Unit DAILY WELLSITE REPORT ~~+ ~'~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Dan Byrd DATE Feb 12, 2007 DEPTH 10384 PRESENT OPERATION Circulating hole clean TIME 24;00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/8/C PULLED 5RR2 (Old bit) 6.125 NTC STX-1 5043882 3x20 10384 10384 0 0 In Hole Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FTIHR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE ep ~ PS~ DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 602 @ TG at 10384 6@ Circ and contl N!A TRIP GAS 602 CUTTING GAS @ @ WIPER GAS 57 CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE(C3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 6 PENTANE(P5) @ ~ HYDROCARBON SHOWS INTERVAL LITHOLOGYlREMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to rabbit, pick up off catwalk, make up and run in hole joints of 4" drill pipe to 3680'. Run in hole with stands of 4" drill pipe in derrick from 3680' to 6710' (just inside 7" shoe). Circulate bottoms up and briefly continue circulating and conditioning (at 210spm/263gpm, 260spm/326gpm). DAILY Record 542 units of trip gas at 6710'. Continue running in hole with 4" drill pipe to 10235'. Wash down from 10235' to bottom at 10384'. Circulate ACTIVITY bottoms up. Record 602 units of trip gas. Mix and pump around Hi-Vis sweep. Continue to circulate, clean and condition mud. Check for flow. SUMMARY Pump dry job. Puil out of hole from 10384' to 6707' on wiper trip to shoe. Monitor well. Allow hole to stabilize for 3 hours. Run back in hole from 6707' and tag tight spot at 10119'. Pump, rotate, ream and wash from 10119' to 10167'. Continue running in hole to bottom at 10384'. Circulate bottoms up (while rotating). Record 57 units of wiper gas. Without rotating, circulafe 2nd bottoms up and briefly continue to circulate, clean and condition mud. Mix 11.5ppg Hi-Vis weighted pill and pump and spot on bottom. Let pill statically balance before pulling out of hole. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva file: //C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20 Wells\... 2/ 13/2007 ~ ~ Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT E+~'~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Dan Byrd DATE Feb 13, 2007 DEPTH 10384 PRESENT OPERATION Running in hole with 4 1/2" liner TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING WFORMATION 7" @ 6730' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS TIB/C PULLED 5RR2 (Old bit) 6.125 HTC STX-1 5043882 3x20 10384 10384 0 0 NG Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ Q AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.6 VIS 47 PV 8 YP 23 FL 5.4 Gels 9/11/13 CL- 26000 FC 1 SOL 9.0 SD Tr OIL 5/86 MBL 5.0 pH 10.0 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 26 @ Circ at shae 7@ at pump shut down N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull siowly out of Hole from 10384' to 9980'. Check for flow. Pump dry job. Continue pulling out of hole from 9980' to 531'. (Puiled tight at 7655'). Pull out of hole laying down 4" HWDP and remaining bottom hole assembly Qars, drill collars, statiilizers, bit sub and bit). Change out bails and DAILY elevators. Rig down pipe spinner. Rig up ~II-up hose. Rig up Weathertord liner running tools. Set Weatherford stage centralizers on rig floor. Hoid ACTIVITY pre-job meeting on safety and procedures for running liner. Run 4 1/2" liner as per Marathon program. Pick up and make up shoe track and check SUMMARY floats. Run 4 1/2" liner to 3565'. Change out bails and elevators. Pick up, make up and run in 5" x 7" Flexlock hanger. Circulate while rigging down Weatherford. Continue running in hole with 4" drill pipe from 3587' to 6680' Qust inside shoe). Circulate bottoms up. Record 26 units of shoe gas. Continue running 4" drill pipe in hole to 7059'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20 Settings\EpochAdmin\My%20Documents\My%20 Wells\... 2/ 14/2007 Daily Report ~ ~ ~ Page 1 of 1 Marathon Oil Company ~ Ninilchik Unit DAILY WELLSITE REPORT Ei ~~~~ Grassim Oskolkoff #5 REPORT FOR John Nicholson / Mike Felieti DATE Feb 14, 2007 DEPTH 10384 PRESENT OPERATION Laying down 4" drill pipe TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 10100' SURVEY DATA DEPTH INCL~NATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON N0. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACETORQUE @ @ AMPS WEIGHT ON BIT @ (n~ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ ~ PS' DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.6 VIS 43 PV 8 YP 18 FL S.6 Gels 7/9/ CL- 26000 FC 1 SOL 9.0 SD 0.25 OIL 5/86 MBL 5.0 pH 10.2 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 134 @ TG with liner in 1 CUTTING GAS @ at final pump shut down TRIP GAS 134 @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) ~ @ AVG PROPANE(C3) @ ca CURRENT BUTANE (C-4) @ @ CURREN7 BACKGROUND/AVG N/A PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Contihue running 4 1/2" liner assembly in hole on 4" drill pipe from 7059' to 10033' (filling every stand with the fill-up hose). Break circulation and wash down from 10033' to 10096'. Continue to circulate while reciprocating. Unable to rotate after several successive attempts. Circulate 6611 strokes total at 90-140spm while trying to rotate, but higher rates causing packoffs. Pickup single and make a connection. Wash from 10096' to 10100'. Continue to circulate and reciprocate liner, but still unable to rotate and still packing off at higher pump rates. Remaining circulation before cementing at 105gpm, 85spm, 565psi without pack-offs. Circulate bottoms up at 10100'. Record 134 unifs of trip gas. Continue to circulate, reciprocate and condition hole. Hold pre-job meeting with BJ on procedures and cementing for 1st stage of cementing. Pickup, torque up and rig up cementing head. Begin batch mixing cement and continuing to circulate with rig pumps until2 pods of cement are mixed to correct weight. Switch to BJ pumping unit. Pump 3 bbls water and fill cement lines. Test lines to 5000psi. Mix and pump 17.9 bbls of tO.Oppg MCS4 sweep, followed by 76.4 bbls of 10.5ppg cement slurry (145 sacks Class G cement to 42.26 bbls of mix water plus chemicals). Close valve to drill pipe. Pump 9.3 bbls of water to clean lines. Close valve. Drop plug. Pump 28.3 bbls of KCL brine and 98.8 tibls of mud. Displace at 2.5 bpm, slowing to 1.0 bpm for plug to pass stage collar at 65.1 bbls. Bump plug with 744psi increasing to 1644psi. Bleed off. Float held. Cement in place. 700 percent returns. Pressure up to release hanger to 1998psi. Slack off to 62K. Hanger not set. Pick up 5'. Pressure up to 2457psi. Set down to 30K. Confirm hanger set at 10100'. Pressure up to 2911 psi to open up stage collar DAILY DV tool. Pressure dropped to 615psi and establish circulation through stage collar at 8423'. Circulate through stage collar (at 2.Sbpm, 950psi). Pressure increased to ACTIVITY 1300psi. Slow pump rate to 1.Sbpm, 1200psi. (Well was packing off at 2.4bpm). Continue circulating between 1.5 and 2.4 bpm. At 5750 strokes MCS4 spacer and SUMMARY estimated 10-15 bbls of cement returned to surface. Circulate and ondition mud at 1.5-2.3 bpm at 1100-1300psi through stage collar and wait on cement. Eventually increase pump rate to 3 bpm at 1050psi. Rig down BOT cementin~head. Rig up BOT plug dropping cementing head. Hold pre-job meeting on procedures and safety for 2nd stage of cementing. Continue circulating and batch mix 2 pods of cemeni slurry. Tum rig pumps over to BJ pumping unit. Pump 3.8 bbls of water into lines and test to 4920psi. Pump 22.3 bbis of tO.Oppg MCS4 sweep, foliowed by 76.Obbls of 10.5ppg cement slurry (132 sacks Class G cement to 42.04 bbls of mix water plus chemicals). Drop plug. Displace with 29.3 bbls of KCL brine and 77.7 bbls of 9.Sppg mud. Record maximum 46 units of gas wnile displacing. Pump at 2.6-2.9 bpm, 750-t t00psi and slow to 1.0-1.3 bpm to pass plugs through liner hanger. Pick up first wiper plug at 65.3 bbls of displacement and second wiper plug at 77.7 bbls of displacement on way to total displacment of 107.0 bbls. After plugs passed hanger the pressure increased to 1142psi. Pump rate increased to 2.1-2.4 bpm at 1247-1500psi. Bump stage tool with 594psi increase from 1202psi to 1796psi. Stage tool dosed. Increase pressure to 2317psi and hold for 5 minutes. Confirm stage tool closed. Bleed off pressure. No flow. Switch to rig pumps. Pressure up to SOOpsi. Pu~l out of liner hanger and seal assembly. Pump at 240spm, 335gpm, 550psi. Circulate bottoms up. Record 20 units maximum gas. Return MCS4 spacer and estimated tObbis of cement to surface. Cement in piace. Rig down and lay down cementing head. Pump drill pipe wiper dart. Circulate drill pipe volume. Record 3 units maximum gas. Pump dry job. Pull out of hole with 4" drill pipe from 6516' to 3340'. Cut 146' and slip 114' of drill line. Hold procedure meeting and set up for laying down drill pipe. Lay down 4" driil pipe from 3340' to 2900'. ~ EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva file://C:\Documents%20and%205ettings\EpochAdmin\My%20Documents\My%20Wells\... 2/ 15/2007 ~ `J Daily Report Page 1 of 1 Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~~H Grassim Oskolkoff #5 REPORT FOR Mike Feketi / John Nicholson DATE Feb 15, 2007 DEP7H 10384 PRESENT OPERATION Pulling out of hole laying down 4" drill pipe TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 10097' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10384 / 7988 TVD MW 9.6 VIS 43 PV 8 YP 17 FL 5.8 Gels 7/8/ CL- 26000 FC 1 SOL 9.0 SD 0.1 OIL 5/86 MBL 5.0 pH 10.1 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6@ TG on polish run 1@ at pump shut down N/A TRIP GAS 6 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION UTHOLOGY PRESENT LITHOLOGY Pull out of hole from 2900' to surface laying down 4" drill pipe. Lay down setting tools. Service rig and Topdrive. Grease crown. Pick up and make DAILY up mill and crossover. Run mill in hole on 4" drill pipe to 6516'. Polish tie-back sleeve from 6516' to 6522'. Circulate bottoms up. Puil 4" drill pipe ACTIVITY out of hole and lay down mill: Pick up ZXP packer with hydraulic pusher tool and run in hole on 4" drill pipe. Tag top of liner at 6516.76' and stab SUMMARY into polish bore receptacle. Drop ball. Attempt to set packer, but would not set. Test surface equipment. No problems with surface equipment. Drop second ball and set packer. Rig up and test annulus to 1500psi for 30 minutes. Blow down surface equipment. Pull out of hole wet, laying down 4" drill pipe from 6516' to 5399'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 435 REPORT BY Craig Silva ~ file://C:\Documents%20and%20Settings\EpochAdmin\My°/o20Documents\My%20Wells\... 2/ 16/2007 Daily Report ~ Marathon Oil Company Ninilchik Unit Grassim Oskolkoff #5 REPORT FOR Mike Feketi / John Nicholson Page 1 of 1 DAILY WELLSITE REPORT ~ Ei ~~~~ DATE Feb 16, 2007 DEPTH 10384 PRESENT OPERATION Displacing well with KCL brine TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1!2" @ 1009T SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS CONDITION REASON T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ SURFACE TORQUE ~ FT/HR WEIGHT ON BIT @ ~ AMPS ROTARY RPM @ ~ KLBS PUMP PRESSURE @ ~ RPM @ PSI DRILLING MUD REPORT DEPTH 6516 / 4169 TVD MW 8.65 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH 8.5 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GASSUMMARY ' (unrts) HIGH LOW AVERAGE DITCH GAS 2@ inside pipe p@ N~q CUTTING GAS @ @ CHROMATOGRAPHY(ppm) TRIP GAS WIPER GAS SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ @ PROPANE(G3) AVG ~ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG N/A PENTANE(GS) ~ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Pull out of hole from 5399' to surface laying down 4" drill pipe. Break down and lay down setting tool. Lay down last stand of 4" drill pipe in derrick. Clear and clean rig floor. Pull wear bushing. Rig down rig tongs and pipe spinner. Change bails and elevators. Lay down and load off pipe handling tools and subs. Rig up Weatherford to run 4 1!2" tubing. Hold pre-job meeting on procedures and safety for running tubing. Pick up and DAILY make up seal assembly to 4 1/2" tubing. Run 4 1/2" tutiing in hole as per Marathon's program to 4080'. Rig up Pollard Oilfield Service to do ACTIVITY banding of control line. Hang sheave for running chemical injection line. Make up injection nipple and attach line. Continue running in 4 1/2" tubing SUMMARY from 4080' to 6516'. Tag top of liner. Record up weight and down weight. Space out. Change out tubing hanger. Rig down Pollard banding equipment. Rig down and load off Weatherford hydraulic tongs, power slips and other tubing-casing handling equipment and tools. Cut and tie off chemical injection line. Rig down and lay down sheave for running chemical lnjection line and spool back unused line. Load remaining equipment off of rig floor, Clean pill pit: Build Safe Clean spacer. Pump 40 lead bbls of water, followed by 45 bbls of Safe Clean spacer, and then displace well with 6% KCL brine. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1275 RW: 435 REPORT BY Craig Silva u file://C:\Documents%20and°/o20Settings\EpochAdmin\My%20Documents\Mv%20Wells\... ~./17/~nm Daily Report Page 1 of 1 ~ Marathon Oil Company NinilchikUnit DAILY WELLSITE REPORT ~~~~~ Grassim Oskolkoff #5 REPORT FOR Mike Feketi / John Nicholson DATE Feb 17,2007 DEPTH 10384 TIME 24:00 YESTERDAY 10384 24 HOUR FOOTAGE 0 CASING INFORMATION 4 1/2" @ 10097' SURVEY DATA DEPTH PRESENT OPERATION Rigging down for move to Ninilchik State #3 INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS CO 'ON T B C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ SURFACE TORQUE ~ FT/HR @ @ WEIGHT ON BIT ~ AMPS ROTARY RPM @ @ ~ KLBS PUMP PRESSURE ~ RPM ~ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ CUTTING GAS @ @ TRIP GAS WIPER GAS CHROMATOGRAPHY(ppm) SU RVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE(G2) @ ~ PROPANE(C3) AVG @ ~ CURRENT BUTANE (C-4) @ Q CURRENT BACKGROUND/AVG PENTANE(G5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Sting into seal bore. Land out and set hanger. Test hanger body seals to 5000psi for 10 minutes. Test contact seal at 7" casing to 4 1/2" tubing to 1000psi for 30 minutes. Flush all surtace equipment (mud pumps 1-2-3, choke manifofd, stack, choke and kill lines, cementing lines, Topdrive, DAILY poorboy, stand pipe manifold and lines to pits). Begin cleaning pits and sump. Set Blowout P~evention Valve. Rig down drip pan, tumbuckles, fill- ACTIVITY up line, trip tank line, flowline, and choke and kill lines. Nipple down check and kill valves, spacer spool, BOP stack, and DSA. Load off BOP SUMMARY stack. Clean and inspect gas buster. Prepare and install the tree. Remove BPV. Instali 2-way check valve. Test void to 5000psi for 10 minutes. Test tree to 5000psi for 10 minutes. Pull 2-way check valve and reinstall BPV. Begin rig down of ali Glacier No.1 rig components for move to Ninilchik State #3 location. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 Rig Down: 2025 REPORT BY Craig Silva file://C:\Documents%20and%20Settings\EpochAdmin\My%20Documents\My%20Wells\... 2/ 17/~.(l m
