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207-042
~ • ~~ ~ ~ ' ~" j~C~ ~~~ ~9~t~ ~~~~ ' ~~~9' ~ ~ ~~~,1Z~ This page identifies those items that ~ere no~ scanned during ~he initial productior~ scanning phase. They are available in the original file, may be scanned during a special rescan activity or are vie~vable by direct inspection of the file. ~Q~f ~ Q ~- ~ VNeI! Fiostory ~ile Identofier r Organizing (done) ^ Two-sided ~II II'III II III II ~II ^ Rescan Needed III II~III II II III III RE AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ^ Diskettes, No. ^ Maps: ~reyscale Items: ^ Other, No/Type: ^ Other Items Scannable by a Large Scanner ~ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: D /s/ Project Proofing II I II II ~~ (' (II li II) BY: Maria Date: ~ ~S~ ti P x 30 ~ ~ + =~ ~ = TOTAL PAGES~~~ on repara Scanning , _ (Count does not include cover sheet) BY: Maria Date: ~ ,~ ~/O9' /s/ Production Scanning Stage 1 BY: Stage 1 BY: Page Count from Scanned File: ~,J (Count does include cover sheet) Page Count Matches Number in Scanning Pre aration: ,J~~YES NO Maria Date: ~'~7 Q ~S~ ~ ~ ~ ~ q If NO in stage 1, page(s) discrepancies were found: YES NO Maria Date: /s/ .. „ _... ... ,. , . .,. Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Comments about this file: Date: Quality Checked /s/ II'lll II' II') II) 10/6/2005 Well History File Cover Page.doc • ~. ,_ ~ i ~ ~ ~ - ~ ~ ~~ ti. ~o ~ ~r s ~ . , - ~:~ MICROFILMED 6/30/2010 DO NOT PLACE ANY ..NEW MATERIAL UNDER THIS PAGE. C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ ~ ~ ~ ~~ DATA SUBMITTAL COMPLIANCE REPORT 6122/2009 Permit to Drill 2070420 Well Name/No. KENAI BELUGA UNIT 12-5 Operator MARATHON OIL CO API No. 50-133-20567-00-00 MD 8920 ND 7782 Completion Date 6/27/2007 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: Quad Combo, CBL, Gammr Ray (data taken from Logs Portion of Master Well Data Maint Well Log Information: Logl Electr Data Digital Dataset Log Log Run Interval OH / Ty e Med/Frmt Number ame Scale Media No Start Stop CH Received Comments D C 15335 Report: Final Well R Open 8/23/2007 Final Well Report, with Mudlogs, LAS Files and other Graphics PGD, TIF, LAS Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cores and/or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 4/9/2007. ADDITIONAL IPFORMATION Well Cored? Y/ N Daily History Received? N Chips Received? Y'XAL, Formation Tops ~ Analysis ~ / N Received? Comments: Compliance Reviewed By: Date: \ ~ ~J ~ ~ M1P~~tftl MARATHON Oil Company November 28, 2007 Mr. Tom Maunder Alaska Qil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-421 C?pen Flow Potential Test Report Field: Kenai Gas Fiefd Well: Kenai Beluga Unit 12-5 Dear Mr. Maunder: ~ Marathan Oil Company Alaska Asset Team p.o. e~ax ~sas Kenai, AK 99611 Telephone S07/283-13T1 Fax 907/283-1350 ~~~~~~~~ Nav ~ ~ zoa7 Alaska Qil & GnchoQage~ammissio~ A ~~ ~~ ~ Enclosed is the Open Flow Potential Test Report 10-421 for well KBU 12-5. This is an Excape well drilled in the Kenai Gas Field during April and May of 2007. Completion operations were condueted on the Tyonek and Beluga formations. Both formations were perforated and fracture stimulated utilizing 9 of the 11 modules. #6 and #7 modules, located in the Beluga formation, were perForated but not stimulated. If you have any questions or require additional information, please call me at (907) 283- 9 371. Sineerely, ` ~-,~jU'1,c~,, ' ~~~ Kevin J. Skiba Production Technician Enclosures: 10-421 Open Flow Report cc: Houston Well File Kenai Well File KJS KDW . . --~~~ W 7~~~„J a....' ` F... `. ..~ ~ ~ ( ~Q~ ~; ' f?(: i STATE C7F ALASKA ~'~~ ~ ALASKA QIL AND GAS C~NSERVATION COMMISSION ~~e~,~~ ~jj) $i ~ ; ~,; , ;,,:,y., . ;~,y;;, GAS WELL OPEN FLOW POTENfiIAL TEST REPORT ~.,,~s.~ Y..rv `~a. Tesfi ~ Initial Annual Speciai 1b. Type Test: Stabifized ~ Non Stabilized Multipoini ^ Constant Time ~ Isochronal Q ~ther Inetiai Wefl Test Data 2. pperator Name; Marafhon Oil Gompany 5. Date Complefed: s~zs~2oa~ 11. Permit to Drill Number; 2o~-oa2 3. Address PO BOX 1949 Kenai, Alaska 99611-1949 6. Date TD Reached: 5I5/2o07 12. API Number: 5n 133-ZU525-00.00 4a. Locatipn o# Wekl (Governmen#al Seetion): Surfacei ?7' FSL, 7,080' FEL, Sec. 6; TAN, R11 W, S.M. 7. KB Elevation (ft); 88' 13. Well Name and Numberc Kenai Beluga Unit ~12-5 Top of Produckive Horizon: 2697.09' FSL, 813.25' FWL, Sec. 5, T4N, R774V, 5.M. 8. Plug Back Depth(MD+TVD): 8850' MD / 7712` 1V~ 14. Fieltl/Poal(s}; Kenaf Gas Field Total Depth: 2800.21' FSL, $56.64` FlNL, Sec. 5, T4N, R11W, S.M.. 9. Total Depth (MD +'I'\/p): 8920' MD / 7782' ND Beluga and Upper Tyonek Pools 4b. Location of We11(State BasePlane Coordinates): Surface: x- 274,849.98 y- 2,362,041.22 Zone= 4 10. Land Use Permit; N/A 95. Properly Designatioa: FEDA - 028142 TPI: x- 276,773.4& y- 2,364,675.35 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 276,818.80 y- 2,364,T77.63 Zone- 4 Excape Gompletion, Multi Zone-Frac StimulaEed 17. Casing Size Weight per foot, lb: I.D. in inches Set at ft. 3-1/2" 9.3 2.992" 8895' MD 19. Perforations: From To MD: 7;513'-7,523'. 7.928'-7,938', 7,978'-3,988', 8,429'= 78. Tubing 5ize Weight per foot, Ib. I.D. in incMes Set a# ft. N/A N/A N/A N/A $,039', 8,084`-8,094', 8,132`-8,142', 8,27T-8,28'7', 8,322`- 8,332'; 8,451'-8,461', 8,764'-8,774', 8,808'-8,816' (All ~1' Excape Zones in AAQ} 20. Packer set at ft: N/A 21. GOR cf/bbL• N/A 22. API Liquid Hydrocarbons: N/A 23. Specific Gravity Flowing Fluitl (G): 0.564 24a. Producing through; ~ Tubing Q Casing 24b. Reservoir Temp: EsYd 134 F° @PBTVD 24c. Reservoir Pressure: at ~7os psi Estd StwM 6sYd 1709 psia @ Oatum 7678' PBTVD 24d. Barome#ric Pressure (pa): 14.73 psia 25, Length of Flow Channei (L): 8816' Verticai Depth (H): 7412' Gg: 0.564 °to GQ2: 0 % N2; 0 °lo H2S: 0 Prover. Meter Run: 4Velltester run Taps: 26. FLOW DATA TUBING DATA CASING DATA No. Prover Choke Line X Orifice Size (in.j Size (irt.) pressure Psig Diff, Hw Temp. ~° Pressure psig Temp• F° Pressure psi~ Temp. F° Duration of Flow Hr_ ~• 3.826 X 1.000 251.1 B7 65.4 - - - - 5.92 2• 3,826 X 1.000 324.3 66 61.5 - - - 6.17 3. 3,$26 X 1.OQ0 399.4 66 57.3 _ _ _ ` 5.92 4• 3.826 X 1;000 474.5 60 55.1 - - - - 6.08 5. No. Basic Goefficient (24-Mour) Fb or Fp h~ Pressure Pm Flow Temp. Factor Ft Gravity Factor F g Super Comp. Factor Fpv Rate of Flow Q Mcfd ~ 1. 42.5 66.21992736 265.83 1.Od 1.332 1.4153 2817 2. 42.8 63J1190Q12 339.03 1.00 1.332 1.D233 2726 3. 42.9 61.484&4613 414.13 1.00 1.332 1.0287 2640 4. 44.3 57.47302191 489.23 1.00 4.332 1.0370 2549` 5. No. Pr Temperatute T Tr z for Separator Cas Gg for Flowing Fluid G ~• 0.37 525.4q$937 1.53 0.970 0.564 N/R 2~ 0.48 521.503124§ 1.52 0.955 3• 0.59 517.27&5804 1.51 0.945 Critical Pressure 673.1 4• O.ZO 515.0524708 1.50 0.930 . Critical Terrtperature 3432 5, Form 1p-421 Revised ~# , GONTINUED ON REVERS~ SI Submit 1n Dupficate _ ~~ ~~~ t~~~. ~- ~ ~oo, ~,.~,o~ R ~ ~ ~ NA L • ~ Pc 1430 PcZ 2043899.1 Rf pp~ No. Pt pt~ p z-p Pw puv~ PcZ-Pv~ ~`S Ps2 Ff2-Ps2 1. 266 7EI648 1973250.854 2. 339 114$S7 t829Q32.1Q4 3. 474 171439 187246Q.159 4. 489 239250 1804649.495 5. 564 318212 1725687.556 25. AOF (Mcfd) 2,8g8 n ~.ooo Remarks: Excape well. SIBHP estimated at 1709 psig. Test data is obtained fram welihead measureme~ts. I hereby certify that the forego'ng ' true and carrect to the best of my knowledge. Si ned ~~~`-~ .~Q~~~en D. Walsh Ti I ni 1~l2s/2oo~ 9 ~ t e Se ~r rrorucfi~n En~ineer ~ate DEFfNITIONS OF SYMBOLS AOF Absolute Open Flow Potentiat. Rate of Flow that woufd be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd! h~ Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor- !1 Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing weUhead pressure, psia Pw Static column wellhead pressure coResponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Fortn 10-421 Revised 1/2004 Side 2 ~ ~ ~ Page 1 of 1 i Maunder, Thomas E (~OA) From: Skiba, Kevin J. [kskiba~marathonoil.com] Sent: Monday, August 27, 2007 3:33 PM To: Maunder, Thomas E (D~A) Cc: Walsh, Ken; Donovan Jr, Dennis M.; Rang, Craig L. Subject: RE: KBU 34-6 (207-064) and' ~:;~ Attachments: KBU 12-5 Operations Summary Report 061207.pdf; KBU 12-5 Operations Summary Report 041807.pdf; KBU 12-5 Operations Summary Report 050907.pdf Tom 1.) Attached are the Operations Summaries that were intended to accompany the KBU 12-5 Sundry Report 10- 407. , 2.) i presume that your 2nd inquiry relates to well KBU 34-6. Module # 1, on this well, was shot on 6/29/2007. The June 26th date is a typo. The actuai completion date is 6/29/2007. Sorry for the confusion. Please contact me if you have any additional inquiries. Thanks, Kevin Skiba Production Technician Marathon Oil Campany Office (907) 283-1371 ' Cell (9~7) 394-1332 Fax (907) 283-1350 From: Maunder, Thomas E (DOA) [maiito:tom.maunder@alaska.gov) Sent: Friday, August 24, 2007 9:41 AM To: Walsh, Ken; 5kiba, Kevin 7. Subject: KBU 34-6 (207-064) and KBU 12-5 (207-042) Ken and Kevin, We just received the 407 completion reports for these wells. A couple of items. 1. The operations summary attached to both 407s is for KBU 34-6. Would you please submit the reports for KBU 12-5? Email is fine. It does appear that the information on the 12-5 407 is correct, at least it is different from what is reported for 34-6. 2. CBL(s) are run on June 13, then there is a break in the summary until .luly 1. It appears that module ~ has already been fired by July 1, however the summary does not provide that information. 1 presume that module 1 was fired on June 26 which is the date you have listed as the completion date on the 407. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC 8/27/2007 i ara$~90 MARATHON ~II CO ~i~~~ August 23, 2007 Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7~' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon KBU #12-5 - API 50-133-20567-00 CONFIDENTIAL Dear Mr. Okland: Alaska Asset Team United States Production Operations P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3597 Fax 713-235-6322 Hand Delivery Enclosed is one CD containing confidential digital well data for the above referenced well, as described on the attached CD Contents document. Please indicate your receipt of this data by signing below and returning one copy to my attention at the letterhead address or fax to 713-235-6322. Thank you, °~ ~~~~~ C. Courtney McElmoyl Received by: Y Date: ~""z ~." ~= ~ '~ ~ ~ ~~'` . ~~. ~~ '~ ~ Enclosures ~~"a'~ ~a v`% 7 J ll l `,~~~~ ~y~ ~ -~~ ,;~ { ~ ~.,~;sl lS~iG;, ~y-j"~~~? / '~(~'~'-U~-10l ~ l s~-`~ • - ~ ~ M Marathon MARATHON Oil Company August 17, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-407 Sundry Notice Field: Kenai Gas Field Well: KBU 12-5 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 \ ~~~E~~E~ ~ ~~~ 2 0 Z`007 ~laska ~il & ' Gas Cons. C~~ssioq Anchorage . Attached and submitted for your records is the Form 10-407 for the completion work perFormed in the Kenai Beluga Unit 12-5. This well is an active Tyonek gas producer. Also attached for your records are the operational history, final directional survey, and well schematic. If you have any technical questions or need further information please call me at (907) 283-1311. Please send any return correspondence to Kevin Skiba at the letterhead address above. Non-technical questions should be directed to Kevin at (907) 283-1371. Sincerely, ~ ~,,,~,,,. ~j , ~ Ken D. Walsh Senior Production Engineer Enclosures: 10-407 Sundry Well Schematic Operations Summary Directional Survey cc: AOGCC Houston Well File Kenai Well File KDW - , ' STATE OF ALASKA Q~ , ~ ~?-~ ~~ ~~~~~~I V~ ~ ALA~ OIL AND GAS CONSERVATION COM SION D WELL COMPLETION OR RECOMPLETION REPOF~„T,A~~~oo7 1 a. Well Status: Oil ~ Gas ~ Plugged ~ Abandoned ~ Suspended ~ zoaacza~os zo.aaczai~o GINJ~ WINJ ^ WDSPL~ WAG ^ Other^ No. of Completions: 1 1 b. Well a. ~ Gas ConS, Development Q AnChp~xpror~ 1~1 S%On Service ^ Stratigr~~ic Test ^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp or Aband.: 6/2 /2007 12. Permit to Drill Number: 207-042 ~~ 3. Address: PO Box 1949, Kenai Alaska, 99611-1949 6. Date Spudded: 4/20/2007 13. API Number: ~ 50-133-20567-00-00 - 4a. Location of Well (Governmental Section): Surface: 27' FSL, 1,060' FEL, Sec. 6, T4N, R11W, S.M. 7. Date TD Reached: 5/5/2007 14. Well Name and Number: Kenai Beluga Unit 12-5 - Top of Productive Horizon: 2,697.09' FSL, 813.25' FWL, Sec.S, T4N, R11W, S.M. 8. KB (ft above MSL): gg' Ground (ft MSL): 67' 15. Field/Pool(s): Total Depth: 2,800.21' FSL, 856.64' FWL, Sec. 5, T4N, R11W, S.M. 9. Plug Back Depth(MD+TVD): 8,850' 7,712' . Kenai Gas Field / Beluga & Upper Tyonek 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 274,849.98 y- 2,362,041.22 Zone- 4 10. Total Depth (MD + TVD): $,g20' ' 7,782' ~ 16. Property Designation: FEDA - 028142 ~ TPI: x- 276,773.46 y- 2,364,675.35 Zone- 4 Total Depth: x- 276,818.80 y- 2,364,777.63 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): ~-q 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, CBL, Gammr Ray 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH ND HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM pULLED 0 2p" 133 K-55 0' 127' 0' 106' Driven NA NA 13-3/8" 68 J-55 0' 1,960' 0' 1,795' 16" 602 sks, 12ppg, type 1 NA 9-5/8" 40 L-80 0' 6,548' 0' S,414' 12-1/4" 385 sks, class G NA 3-1/2" 9.3 L-80 0' 8,895' 0' 7,757' 8-1/2" 1,080 sks, 15.8ppg, class G NA 0 23. Open to production or injection? Yes ~ 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) Eleven Excape Intervals 3-1/2" 8,895' NA MD: 7,513'-7,523', 7,928'-7,938', 7,978'-7,988', 8,029'-8,039', 8,084'- ' ' ' ' ' ' ' ' ' -8,332 8,094 , 8,132 -8,142 , 8,277 -8,287 , 8,322 , 8,451 -8,461 , 816' 8 764' 8 774' 8 806' 8 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. , - , , , - , ~ ND: 6 375'-6 385' 6 790'-6 800' 6 840'-6 850' 891'-6 901' 6 946'- 6 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED , , , , , , , , , , , , , 6,956', 6,994'-7,004', 7,139'-7,149', 7,184'-7,194', 7,313'-7,323', 7,513' - 8,816' (Gross) 220,402 Ib 20/40 white sand 7,626'-7,636', 7,668'-7678' 32,6491b 12/20 flex Modules #1 - #8: 2.375" 6 spf Modules #9 - #11: 2.625" 10 spf 26. PRODUCTION TEST Date First Production: 6/2812007 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: 7/28/2007 Hours Tested: 24 Production for Test Period Oil-Bbl: 0 Gas-MCF: 2,800 Water-Bbl: 9.3 Choke Size: 0.75" Gas-Oil Ratio: NA Flow Tubing Press. 345 Casing Press: 0 Calculated 24-Hour Rate ~ Oil-Bbl: 0 Gas-MCF: 2,800 Water-Bbl: 9.3 Oil Graviry - API (corr): NA 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+ND 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. ~ CO~tvl PLETtON ~,~~~IS ~~~ ~EP ~ ~ 2007 ~ Form 10-407 Revised 2/2007 CONTINUED ON REVERSE ~~ j' ~Rl~~~~,-~~ ~~+~~ ~~~'~/~~ 28. GEO~OGIC MARKERS (List all formations and m encountered): 29. FORMATION TESTS NAME MD ND Well tested? Yes ~ No 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 Zone Top MD Toa ND psia M Beluga 5,742' S,585' 2,066 Middle Beluga 6,551' 5,416' L Beluga 6,442' 6,285' 2,639 L Beluga 6,728' 6,571' 2,366 Tyonek 8,478' 7,280' L Beluga 6,770' 6,613' 2,182 L Beluga 6,812' 6,655' 2,196 L Beluga 6,854' 6,697' 3,348 L Beluga 7,008' 6,851' 2,466 L Beluga 7,120' 6,963' 3,621 L Beluga 7,210' 7,053' 2,821 Tyonek 72-8 7,370' 7,213' 2,597 Formation at total depth: 30. List of Attachments: 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: IJC./~/L ~ Phone: (907) 283-1311 Date: 8/17/2007 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry repoR when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for /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 repoRed 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 ND 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 ~ KBU 12-5 Pad 41-7 27' FSL, 1,060' FEL Sec. 6, T4N, R11W, S.M. RT-GL: 21.00' RT-TH F: 21.70' Tree cxn = 4-3/4" Otis Rig Released: OO:OOhrs 5/13/07 TOC (est.) - 500' above 9-5/8" shoe - Ceramic flapper valves below each module as follows: Module 1 - NA Module 2 - 8790' Module 3 - 8475' Module 4 - 8347' Module 5 - 8302' Module 6 - 8159' Module 7 - 8109' Module 8 - 8050' Module 9 - 8006' Module 10 - 7956' Module 11 - 7538' Drive Pipe: 20", 133 ppf, K-55, to 127' RKB Surface Casinq: 13-3/8", 68 ppf, J-55, BTC @ 1960' RKB, Cmt w! 262 bbis / of Class G Type 1 at 12.5 ppg. Int. Casinq: 9-5/8", 40 ppf, L-80, BTC @ 6548' RKB. Cmt w/ 105 bbl of class G lead @ 12.5 ppg and 84.5 bbis Class G tail @ 13.5 ppg Prod. Tubinq: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 8901' RKB. Cmt w/ 220 bbls Class G Cmt at 15.8 11 Excape modules placed Green control line for module 1 Yellow control line for modules 2 thru 5 Red control line for modules 6 thru 11 Ceramic flapper valves below each module xcept for module 1 Module 1 - 8806 - 8816' (Tyonek) Module 2 - 8764 - 8774' (Tyonek) Module 3 - 8452 - 8462' (Tyonek) Module 4 - 8322 - 8332' (Beluga) Module 5 - 8277 - 8287' (Beluga) Module 6 - 8132 - 8142' (Beluga) Module 7 - 8084 - 8094' (Beluga) Module 8 - 8029 - 8039' (Beluga) Module 9 - 7978 - 7988' (Beluga) Module 10 - 7928 - 7938' (Beluga) Module 11 - 7513 - 7523' (Beluga) Well Name & Number: KBU 12-5 Lease: Kenai Gas Field County or Parish: Kenai State/Prov. Alaska Country: USA Perforations (MD) See Above (ND) Angle/Perfs Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: 5/10/2007 Prepared By: C. A. Meese Last Revison Date: 5/10/2007 8/16/2007 6:01 PM TD - 8920' PBTD - 8864' ~ ~ ~ ~ a°P ~ ~ ~ .: ~'~ ~ iYi ~I:~~~~ ~~.~1~ t.~f~~~~~ 4'\-. • `~iT~ ~ G y~% ~,~ ~~ "~' ~~~ , . , ~ ~2~~ ~ Q ~ ~ ~ - ' .: _ ~ \ ~ _ y ~ y cl/ad. ~ : ~ ~ ~ 99 ~ o, .. . ,, pr~ ~~~I Q . w,i ~~ y ~~~7 ^~ ~~~ ~~' ~~ ~ ~ ~ s ~ ~ ~~ ~ H '~',a ~ ~ : \ ~ , i , ~ : . : \ '' ~ .: : ' . : ~ i ~ ~ ~ a ~ ~ ~.~ 3 ~~*Z .r, ,y ,. ,:: .. ,: ... .. ~..:': ~'~. ....:. ~.. ,.. .... . ...: ~.. I, ., „< ..I . : :i ...:°. ~ ~ ' z~s,m i .: , ~ : ~ < L~ .,, , '~ ,',;.. Legal Well Name: KE NAI BELUGA UNIT 12-5 Common Well Name: KE NAI BELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Name: ORIGINAL DRILLING Start: 4/18/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 ~}~a~ ~rr~r~ ; ~'c~ Hours Cod~ ~ ~ ~ ~s~ ; ~~ ~ ~esr~ptlc~r~ ~~ ~ ~,, ~ ~s ; . ,,,,,.. , ,. .. . : :a _~._ _ _ ~. .. .>. .. ~,., s ~r: 4/19/2007 06:00 - 20:30 14.50 RURD RIG_ MIRU Accept rig from KBU23X-6 @ 06:OOhrs 4/18/2007. Lay Herculite liner. Position mats. Spot sub and carrier, pumps and pits. I generators, boiler. Spot office and other trailers. Level carrier. Change pump liners to 5" on pump #1. 20:30 - 20:45 0.25 SAFETY MTG MIRU PJSM with crane and rig crews. 20:45 - 06:00 9.25 RURD RIG_ MIRU Raise derrick. Set-in stairways. Wind walls, set-in 'grey iron'. Set dog and choke houses. Change pump liners on #2. Set catwalk. 4/20/2007 ~ 06:00 -12:00 6.00 RURD_ RIG_ MIRU PJSM. P/U beaver slide and stairs. Instali cylinder socks. Run steam i around and heat water tank. Spot MI centrifudge van. PJSM P/U and install "T" bar. P/U and M/U torque tube and hang. Spot pump #3. R/U pump #3 suction line. R/U welding shop. Set cement silo. Unload trailers. Spot Epoch unit. 12:00 -13:00 1.00 SAFETY MTG MIRU 1 hour weekly safety meeting with both crews. 13:00 - 1430 1.50 RURD_ RIG_ MIRU PJSM. RU mud pump #3. RU mud maniflod, choke line chut, choke/kill hoses, install torque tube turnbukles. Install carrier roof bows. 14:30 - 21:30 7.00 RURD RIG_ MIRU PJSM. PU topdrive. RU bales and elevators. Dress #3 pump w/ 5" liners. replace agitator switch. Trouble shoot control line f/ aggitator. Hook-up shock hoses to mud pumps. RU gas buster. Check all Koomey bottles. Hang rig tongs and DP spinners. 2130 - 00:00 2.50 NUND BOPE SURDRL Bevel and dress 20" connductor for starting head.. Weld-on 2" threadlet. 00:00 - 00:45 0.75 NUND BOPE SURDRL Accept rig @ OO:OOhrs 4/20/2007. PJSM. MU Vetco 21-1/4" 2M SO ~ 00:45 - 06:00 525 NUND BOPE SURDRL starting head. Test same to 500psi / 5min - good test. NU 20" diverter and spool. NU 16" knife valve and diverter line toward the off-drillers side. Same time fill pits. 4/21/2007 06:00 - 09:30 3.50 NUND BOPE SURDRL Anchor down diverter line. Install mouse hole. Install tarps on carrier. Mix spud mud. Function diverter. Check gas alarms. Tie off lines in derrick. Weld crack on snub post. Set pipe racks and rack 5" DP. 09:30 - 10:30 1.00 TEST BOPE SURDRL Test 21 1/4"diverter equipment, gas alarms and PVT system (witnessed by Bob Noble, AOGCC, witness waved by Rob Braumbaugh, BLM). 10:30 -12:00 1.50 PULD DP_ SURDRL Rack and strap DP. R/U to P/U DP. Adjust torque tube. Finish rig inspection. Install new spring in mouse hole.R/U Geolograph. 12:00 - 12:30 0.50 SERVIC I RIG SURDRL PJSM. C/O oil in top drive gear box. 12:30 -17:30 5.00 PULD_ ~ DP_ ~ SURDRL PJSM. P/U 5" DP(64joints). P/U 5" HWDP(21joints) 1730 -17:40 0.17 SAFETY' MTG SURDRL PJSM for PU of BHA. Stress importance to watch for overhead loads ~ and to check slip segments in elevators for proper size. 17:40 - 21:00 3.33 PULD BHA SURDRL PU BHA #1 21:00 - 00:00 3.00 WASH FILL SURDRL Wash to 20" conductor shoe f/ 33' to 127'KB 400gpm to avoid washout i at shoe. I ~ Spudded well at 2100hrs 4-20-2007 ~ 00:00 - 02:30 2.50 DRILL_ ROT_ SURDRL Drill new hole f/ 127' to 212'. Pumps 400-500 gpm pp= 350-500psi 2-3k wob 40rpm's rot trq 1-2k. Drilled enough hole to allow picking up remaining Baker directional BHA tools. ROT = 2.00 hrs 02:30 - 03:00 0.50 TRIP DP SURDRL TOH. ~ 03:00 - 03:15 0.25 SAFETY MTG_ SURDRL PJSM review plan forward and PU BHA. 03:15 - 05:30 2.25 PULD BHA SURDRL PU remaining Baker BHA tools. Align toolfaces. 05:30 - 06:00 0.50 DRILL_ i _ ROT_ SURDRL Drill ahead f/ 212' to 225'. 500gpm 766psi 2-3k wob 40 rpm's 1-2k rot trq ROT .5hrs 4/22/2007 06:00 - 12:00 6.00 DRILL_ ; i ROT_ i SURDRL Dir drill and survey F/225' to 567'(ART=2.7hrs AST=1.4hrs). 1 Printed: S/27/2007 11:44:06 AM ~ ~ ~ ~ ~3~~, ~ Q ~1I~~'~~~lt? I't f~~ ~ ~M ~~y ~ F'~~~ ~~~ ~~ ~~ ~~ ; ' ~ ~ ~ ~ ~ v ~ ~~~~ ~,~ , ~ ~ ~~'~~~!CI~ ~~#~~~ ~,~~ ~ ~ ,~ ~ ~ ~~ ~ ~ ~ ; „: ~ R ~ ~ ; ~~~ ' ~ ~ ~ ~ r ~.,.,. ~ y.. ~..... ~, n..~ ...... ~ ~ Legal Well Name: KENAI BELUGA UNIT 12-5 Common Well Name: KENAI BELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Name: OR IGINAL DRILLING Start: 4/18/2007 End: Contractor Name: GLACIER DRIL LING Rig Release: Group: Rig Name: GLACIER DRIL LING Rig Number: 1 ~ ' ~ ~ ' , ~ ~d ~ ~~ . Ph~~e ~` ~ ~~~ .: ~ ~~ ~ f:~~~~~~ ~~CIS ~ ~ ~ ~ ~~.,w ` . , w: „ ~_~ ~ ~...,. :.u ~.~ . .~ .. ~. ~ ~ ,, ~~,~r _. '` s~ .. : ~ 4l24/2007 03:30 - 06:00 2.50 NUND BOPE SURCSG PJSM review ND procedures. Clean-up cellar area. Start ND 16" diverter system. 4/25/2007 06:00 - 12:00 6.00 NUND BOPE SURCSG Cont. ND 16" diverter line. Make rough cut on 13 3/8" CSG. UD cut joint. N/D 21 1/4" diverter. Clean pits. 12:00 - 13:30 1.50 NUND BOPE SURCSG PJSM. Cont. N!D 21 1!4" diveRer. Fill pits with water. 13:30 - 14:30 1.00 NUND WLHD SURCSG Remove wellhead. 1430 - 17:00 2.50 NUND WLHD SURCSG Make cut on 20"CSG and final cut 13 3/8" CSG(observe cement in I annulus). Dress final cut. ~ 17:00 - 18:00 1.00 NUND WLHD SURCSG Install Vetco 13 5/8" 5M X 13 3/8" SO multibowl wellhead. Pressure test I to 1500psi for 5 min. Good test. I 18:00 - 02:00 8.00 NUND BOPE SURCSG N/U 13 3/8" 5M spacer spool N/U S,Rd,A 13-5/8" 5M BOPE. Mix new Flo-Pro mud 02:00 - 06:00 4.00 TEST BOPE SURCSG MU test jt. Install test plug. Open annulus valve. Test manual choke line valve, HCR, inner and outter kill line valves, check valve, blind rams, annular, 2 7/8" X 5 1/2" variable rams,upper artd lower top drive valves, safety valve and IBOP valve to 250psi / 3000psi 10 min ea test~tness of test waved by AOGCC and BLM). 4/26/2007 06:00 - 07:00 1.00 TEST_ BOPE SURCSG Cont. testing 13-5/8" 5M BOPE. Pertorm koomeyr test._ _„____~ 07:00 - 07:30 0.50 RUNPU WBSH SURCSG L/ test plug and set wear bushing. 0730 - 08:30 1.00 TEST_ CSG_ SURCSG Test 13 3/8" CSG to 1500psi/30 min. 08:30 -12:00 3.50 PULD DP SURCSG PJSM. P/U 5" DP. 12:00 - 14:00 2.00 RURD OTHR SURCSG PJSM. R/U RPM sensor for Epoch. Run cable through service loop. i4:00 - 20:00 6.00 PULD_ DP_ SURCSG Cont. P/U 5" DP(total 928jnts). 20:00 - 23:00 3.00 PULD BHA_ SURCSG PJSM; Pick-up BHA and Bit #2 ~ 23:00 - 23:30 0.50 TRIP_ BHA_ SURCSG PJSM; RIH with HWDP from Derrick 23:30 - 00:00 0.50 SERVIC RIG SURCSG PJSM; Srev. Rig and Top Drive 00:00 - 01:00 1.00 TRIP DP SURCSG PJSM. RIH W/DP to 1820'. 01:00 - 03:00 2.00 DRILL_ CMT_ SURCSG Tag cement @1910'. Drill cement and float collar @1916' and shoe @ 1960'. 03:00 - 03:30 0.50 DRILL CMT SURCSG Clean old hole to to 1970'. 03:30 - 04:00 0.50 DRILL ROT SURCSG Drill F/1970' to 1990'. 04:00 - 05:00 1.00 CIRC_ MUD_ SURCSG Displace hole w/new flopro mud. Circ. and condition for FIT test. 05:00 - 06:00 1.00 TEST LOT_ SURCSG Perform FIT to 12ppg. Pump up to 280psi bled off to 160 psi EMW with 9.2# mud and 160psi = 10.9 #. 4/27/2007 06:00 -12:00 6.00 DRILL ROT_ IN1 DRL Dir drill and survey F/1990' to 2365'(ART=3.Ohrs AST=.4hrs). 12:00 -18:00 6.00 DRILL_ ROT_ IN1 DRL Dir drill and survey Fl2365' to 2764'(ART=2.2hrs AST=2.Ohrs). 18:00 - 06:00 12.00 DRILL_ ROT_ IN1 DRL Dir drill and survey F/2764' to 3648' (ART= 7.4 AST= 1.0 ) I I Up Wt.=105K Dn. Wt.=75K Rt Wt. =90K +Tq.=5600K No Gains No Losses 4/28/2007 06:00 - 12:00 6.00 DRILL ROT_ IN1 DRL Dir drill and survey F/3648' to 4154(ART=3.3hrs AST=.5hrs). 12:00 - 1230 0.50 DRILL ROT IN1 DRL Dir driil and survey F/4154' to 4217'(ART=.4hrs AST=Ohrs) 12:30 - 14:00 1.50 CIRC_ CFLD IN1 DRL Circ. clean(CBU X 2@4217', 600GPM 1450psi). Ck. F/ Flow 14:00 -16:30 2.50 TRIP_ DP_ IN1 DRL POOH to CSG shoe(pulled 25-30k over @3428', 3313',3215', 2645' to 2615', 2590'). 16:30 -17:30 1.00 REPAIR RIG IN1 DRL Rig Repair 17:30 -18:30 1.00 SERVIC RIG IN1 DRL Serv. Rig 18:30 - 20:00 1.50 i TRIP_ DP_ IN1 DRL PJSM; RIH from 1929' to 4217' No fill ~ 20:00 - 06:00 10.00 DRILL_ ROT_ IN1 DRL Dir.drill and survey F/42t7' to 4786' AST= 1.3 ART=5.3 Up Wt.= 145K Dn Wt.= 90K RT Wt =110K Tq.=6-9K j Max. Gas=60 Units 4/29/2007 ; 06:00 - 08:30 2.50 DRILL ROT_ IN1 DRL Dir drill and survey F/4786' to 4843'(ART=.4hrs AST=.4hrs). j 08:30 - 10:00 1.50 CIRC MUD IN1 DRL Circ. while PJSM and UD 6 stands of DP from derrick that was Printed: S/27/2007 11:44:06 AM ~ ~ ~ ~ ~x ~ ~ ~ ~ ~~~ ,,~~ ~ ~~~ ~~~ , , ~~ ~ r~~~~ ~ ~ ~" ~~~ ~~ ~tl ~1 ~i~N7~~~~Y ~ ,~ ~'~ ~ ~?~~@ ~ ~ ~~ ~ ~ ~~~ ~ ~ ~ ~~~~ ~%~_ ~ ~ ~ ~ ~ ~ ~ ~~~ ~~ `~~ ~,~ ~3~~ ~ '~~ ~"~'~~t~~ ~1"~~t~ (~~ ~ ~ ~ ~ ~ . ~ ~ ~ , :. . ,. .. ~~. ~. ~,., . ,. ~ ;:.. .. ~ f ,~ ~C' ~.~ ~ ~,~ `~ Legal Well Name: KENAI BELUGA UNIT 12-5 Common Well Name: KENAI BELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Name: ORIGINAL DRILLING Start: 4/18/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 ' F ~~~ ~ '. ~""d ~y ~\ ~~ E ~~~ ~ E Sp ~~ . ~~~ ~~+~ . - ~ ~ - ~\\ r ~ ~ ~~ /~r : ~ ~ FL~ ~ ~ ~ ~ ~~ -: \ ~ ` ;~ \r~ , ~A/~~ . r ".~: ~ ~ : i : ~ ~ £~ ~ ~ ..,.... . ..a. : ,,,... .v,z.1, . . , ,~ .~.....,, , ,,, ,,. , ,,,~ .: . . .... ... ~ ......£,,,,~, ~ ~ 5/1/2007 08:30 - 15:00 6.50 TRIP DP_ IN1 DRL Mud Losses to hole 15bbis(2.3BPH). 15:00 -16:00 1.00 SERVIC RIG IN1 DRL Service rig. 16:00 -16:30 0.50 SLPCUT DLIN IN1 DRL Slip drilling line(lost 2.56PH mud to hole while at CSG shoe). 1630 - 21:00 4.50 I TRIP_ DP_ IN1 DRL RIH w/DP. (Work tight spots at 4070',F/4590'-4630',F/4963'-5012' 6440') Wash and ream from 6440'-6564'. 21:00 - 00:00 3.00 CIRC MUD IN1 DRL Circulate and condition mud.Had a large amount of Material over shaker Mostly sand and some Gay.Ran cent. while circ.Mud wt. was 9.4+ down to 9.3.Mixed in Mix II ,polypac,and safe-carb. I Up wt.=180K Dn. wt.=125K Rt wt.=145K Tq.=9-12K Losses at 2.5BPH 00:00 - 06:00 6.00 TRIP_ DP_ IN1 DRL PJSM; Monitor WeII,POOH to run 9 5/8 csg(SLM no correction).(pulled , tight and wiped clean at 6402'-6429' , 6179'-6210' ,5040'-5030' ,4910' ,4890'). Losses at 2.5 BPH 5/2/2007 06:00 - 08:00 2.00 DRILL ROT IN1 DRL UD BHA. 08:00 - 09:30 1.50 RUNPU WBSH IN1CSG Pull wear bushing. Test run 9 5/8" CSG hanger assy. Run Test Plug. 09:30 -10:30 1.00 RURD OTHR IN1CSG C/O to 9 5/8" CSG rams. 10:30 - 12:00 1.50 TEST BOPE IN1 CSG Test door seals 250/3000psi. Pull test plug and UD. 12:00 -17:00 5.00 RURD_i CSG_ IN1 CSG C/O to long bales. R/U circ. tool. Adjust top drive torque tube. R/U spider elevators and slips. 17:00 - 18:30 1.50 RUN CSG_ IN1 CSG PJSM. P/U Shoe joints and Bakerlok. Engage circulation tool and circulate through shoe track. Check floats. 18:30 - 06:00 11.50 RUN CSG_ IN1 CSG PJSM; P/U 9 5/8-40# Buttress Csg. RIH at 40 sec. per joint Tag up and stuck at 6478' for 45 min. break free and wash down to 6528' 4 bbis. min. work pipe slowly trying to pack off.Max. press 750 psi Max. wt up=325,000 Slack off wt. 150,000 5/3/2007 06:00 - 06:30 0.50 RUN CSG_ IN1CSG Cont to wash down and land CSG hanger assy and landing joint(total 160jnts shoe @ 6548'). 06:30 - 0730 1.00 CIRC MUD_ IN1 CSG Circ CSG while hold PJSM with BJ for cement job(195gpm @ 600psi). 07:30 - 08:00 0.50 CIRC MUD IN1 CSG R/U BJ cement head and cement line and cont. to circ CSG. 08:00 - 09:30 1.50 PUMP ~ CMT_ IN1 CSG Cont. to circ. CSG while Batch up 205bb1s 10.5ppg slurry. 09:30 - 13:00 3.50 PUMP CMT_ IN1CSG Pump 5bbls water ahead. Test lines to 2500psi. Mix and pump 30bbls 10ppg spacer ahead, Drop bottom plug. Pump 385sxs batch mixed Glass"G" cement w/22%LW-6-7, 15%BA-90, .5%SMS, 1%CD-32, ~ 15%BA-90, 1.5%FL-52, .5% Static free, 1 GPHS FP-6L to yield 205bbs ~ I ~ 10.5ppg slurry. Drop top plug and kick out with 5bbls H2O. Switch to ~ ! rig pumps and displace w/485bb1s 9.4ppg mud. Bum~ olua with 1400psi 1000psi over last disolacement oressure, Bleed off and check floats. CIP 12: h 1°o retums durin entire 'ob. 13:00 - 14:30 1.50 RURD CSG IN1 CSG C/O to short bales and DP elevators. 14:30 -15:30 1.00 PULD EQIP IN1CSG Install 13 5/8 X 9 5/8" packoff assy. Test to 5000psi/10min. 15:30 - 17:00 1.50 RURD OTHR IN1CSG PJSM. Pull riser and repair. Fold up stabing board. R/U tongs and B/O packoff running tool. 17:00 - 19:00 2.00 TEST_ BOPE IN1CSG PJSM; C/O to 2 7/8" X 5 1/2"variable pipe rams.Realign top drive rail. 19:00 - 22:00 3.00 TEST_ BOPE IN1 CSG PJSM; Pick-up test tools, Test BOP 250 psi low to 3000 psi high 22:00 - 22:30 0.50 RUNPU WBSH IN1 CSG PJSM; Set wear ring (run in two anchor screws) 22:30 - 0230 4.00 PULD_ BHA_ IN1 CSG PJSM; Pick-up BHA #3 for 8 1/2" hole.Surface test MWD 02:30 - 06:00 3.50 PULD DP IN1 CSG PJSM; Pick up 82Jts. 5" Drill pipe RIH Out of derrick 5/4/2007 06:00 - 07:00 ' 1.00 TRIP DP INICSG RIH to 5842'. ~ 07:00 - 08:30 1.50 ~ SERVIC RIG IN1CSG PJSM. Service rig. 08:30 - 09:30 1.00 ~ TEST_ ' CSG_ IN1 CSG Test 9 5/8" CSG 1500psi/30min. 09:30 -10:30 1.00; TRIP ~ DP IN1CSG Cont. RIH and TAG cement @ 6458'. 10:30 -1230 2.00 DRILL_ CMT_ IN1 CSG Drill shoe track and shoe @ 6548'. Clean old hole to 6564'. Printed: 8/272007 11:44:06 AM ~ ~ ` y\ , ~~ ~~ > ~ ~ ~ '` ~ '~~~ ~ ~ ~. ~~ `~ ~ ~ ~ ~.~ .; ~ ~, ~ ~ ~ ~ ~ ~~ ~~t{~ R F'~~~: ~ C~t~ ~~ ~ ~ ~ ~~ . ~ ~° : z ~ ~ ~~ ~ ~ - ~ ~ ~,, ~ ~- ~ ,,. ~ ~ : : ~a.~.~-~. ~ ~ y~. ~ ~ ~ ~~~+i ~';~ - ~ ~~ ~ \ ~ ~ ~ ~~ ~ ~ ~a~ r ~ : c ~ ~ ~~ ~~ ~~~ Tr~ :. : . : ' : ~ , ~ ~',-_,'~~.,, ,r, , ,,, ; ,,,,, , , , S ~, .~_a,. ,r_'~',''~"~, _, . ~ ~ ..- ....._ _ ~ , ~~„ ,. : ,. : -, ; , .. ...,i,, ~ .~~:~ : „ , :; > ~... Legal Well Name: KENAI B ELUGA UNIT 12-5 Common W ell Name: KENAI B ELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Nam e: ORIGIN AL DRIL LING Start: 4/18/2007 End: Contractor Name: GLACIE R DRILL ING Rig Release: Group: Rig Name: GLACIE R DRILL ING Rig Number: 1 \~,{~ ~:~~ ~~~ ~ \ \ ~ ~ \ ~ ~ f ~ . ~~ 3 3 ~~~~+~~~\~ ,j"~ f~~ ' ~ y ~ ,,,. ,;; ~. :. ,-..,.,... ... _.. . . .: ..u~., . e~ l~ , ,,,,,, , , ,,,,,., , . .,. . ....,, . , ;; , , ! 9 , , ,,.,,.. , , r,,,. ~, , . . . , , . ,,, , . ... . . ,i,,,,~., u. .......,. _„ 5/4/2007 12:30 -13:00 ~ 0.50 DRILL_ ROT_ INi CSG Drill 20' new hole F/6564' to 6584'(ART=.2hrs). 13:00 - 14:00 ~ 1.00 CIRC MUD IN1 CSG CBU @ 6584'. 14:00 - 15:00 1.00 TEST LOT_ IN1 CSG Pertorm FIT to 13.~p~ EMW(Max pressure 1050psi dropped to 990psi ~ in 10min). 15:00 -18:00 3.00 DRILL_ ROT_ PR1 DRL Dir drill and survey F16584' to 6725'(ART=.7hrs AST=.8hrs). 18:00 - 06:00 12.00 DRILL_ ROT_ PR1 DRL Dir drill and survey F/6725' to 74&4' (ART=5.7 AST=1.7) Up wt.=185K Dn.wt.=130K Rt. wt.= 150K Tq.=9-12K Max. Gas=84 Units No gains No Losses 5/5/2007 06:00 - 12:00 6.00 DRILL_ ROT_ PR1 DRL Dir drill and survey F/7484' to 7800'(ART=4.2hrs AST=Ohrs). increase lubtex to 5°k @ 7500' before TQ 12-14K ft-Ib After TQ 9-11 K ft-Ib. 12:00 -14:30 2.50 DRILL_ ROT PR1 DRL Dir drill and survey F/7800' to 7989'(ART=1.7hrs AST=Ohrs). 14:30 - 1530 1.00 CIRC MUD_ PR1 DRL Circ. clean(CBUX2 450gpm 1700psi). 15:30 - 19:30 4.00 TRIP_ WIPR PR1 DRL POOH(tight @7850'. W/R F/7850' to 6550'). 1930 - 20:30 1.00 CIRC MUD PR1 DRL Circ. Bottoms up @6590' PJSM;Service rig,carrier and top drive. 20:30 - 21:00 0.50 TRIP_ DP_ PR1 DRL PJSM;RIH F/6590'-7926' Wash and ream from 7926'-7989' Hole slick and no fill. Wiper gas 40units. 21:00 - 06:00 9.00 DRILL_ ROT_ PR1 DRL Dir. drill and survey F/7989'-8493' (ART= 6.4 AST= 0) Increase lubtex to 6% at 8360' Before lube Tq.=12000 After 10000 ~ Up wt.=200K Dn. Wt.=14K Rt wt.= 168K Tq.=10K No gains no losses Max. gas= 285 Units 5/6/2007 06:00 -13:00 7.00 DRiLL ROT_ PR1 DRL Dir drill and survey F/8493' to 8800'(ART=5.6hrs). 13:00 -14:30 1.50 CIRC MUD_ PR1 DRL Circ. samples. 14:30 - 15:00 0.50 DRILL_ ROT_ PR1 DRL Dir driil and survey F/8800' to 8855'(ART=.Shrs). 15:00 -16:00 1.00 CIRC MUD PR1 DRL P/U circ. out gas(1450units conn gas). Background gas dropped to below 100units 2ftef B/U. .~e9in inr.rease mud wt to 10.OODDq. 16:00 - 16:15 0.25 DRILL_ ROT_ PR1 DRL Drill F/8855' to 8871' (ART=.25hrs)while increase MW. 16:15 -16:30 0.25 CIRC MUD_ PR1 DRL Circ. @ 8871'. Raise MW to 10.Oppg. 16:30 -17:00 0.50 DRILL_ ROT_ PR1 DRL Drill F/8871' to 8900'(ART=.5hrs). 17:00 -19:00 2.00 CIRC_ MUD PR1 DRL Circ. samples(conn. gas 1436units). Beoin increase MW to 10.2ppq. 19:00 -19:30 0.50 DRILL_ ROT PR1 DRL Check flow F/ 10 min. ,Slight flow,Dril( F/8900'-8920' ART=.20 AST=O Up Wt.=210K Dn wt.=145K Rt.wt.=175K Tq.=10k-12K Max. gas=230 units 19:30 - 21:00 1.50 CIRC MUD PR1 DRL Circulate and brinq ud Wt. u4 to 10.4# Check flow and pump up survey. No flow. 21:00 - 03:00 6.00 TRIP WIPR PR1 DRL PJSM; POOH to shoe at 6548'(Start back reaming from 8780' to shoe). 03:00 - 04:00 ; 1.00 SERVIC RIG PR1 DRL PJSM; Serv. rig carrier,top drive,blocks and crown o matic ~ Work on Mud pumps. 04:00 - 05:00 I 1.00 SLPCUT DLIN PR1 DRL PJSM;Cut Drilling line 140'. 05:00 - 06:00 I 1.00 TRIP DP PR1 DRL PJSM;Trip in hole F1Shoe @6548'. 5/7/2007 06:00 - 07:00 I 1.00 TRIP DP PR1 DRL Cont. RIH to wash last 45' to bottom 8' fili on bottom. 07:00 - 08:00 I 1.00 CIRC_ MUD_ PR1 DRL CBU(450gpm, 1850psi, 70RPM). Had 2360 units gas @ 75% of B/U. Had 5% lel in pits. Shut-in and circ. through open choke. Complete B/U and see decreasing gas. Open well and cont. to circ. no LEL in pits) and quickly fell to below 100units. Max trip gas 2388units. 08:00 -10:00 2.00 ~ CIRC_ MUD_ PR1 DRL Circ. and increase MW to 10.6ppg(440gpm, 1575psi, 70RPM). Waves I I of coal coming over shakers som'eTialf dollar size. 10:00 - 11:30 I 1.50 TRIP DP PR1 DRL POOH to 7991'(hole in good condition). 1130 -12:00 ~ 0.50 TRIP DP PR1 DRL RIH to 8920(2' fii~, hole in good condition). 12:00 - 13:3Q ! L50I TRIP_ _ i DP_ PR1 DRL CBUX2(450gpm, 65RPM, 1750psi). Trip gas 125units. Waves of coal i ~, ~ across shaker some half dollar size. 13:30 -14:00 I 0.50I FLOW CHEK PR1 DRL Flow check. Pump dry job. Drop 2 7/8" rabbit. 14:00 -19:00 i ( 5.00 j ~ TRIP_ I ~ DP_ PR1 DRL PJSM; POOH(SLM, no correction). Printed: 8l27/2007 11:44:06 AM • ~ Legal Well Name: KENAI BELUGA UNIT 12-5 Common W ell Name: KENAI B ELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Nam e: ORIGIN AL DRIL LING Start: 4/18/2007 End: Contractor Name: GLACIE R DRILL ING Rig Release: Group: Rig Name: GLACIE R DRILL ING Rig Number: 1 f~ ,, ~ ~, .._.... ~r~ _: Tfl ; . H~uC~" GE~ ; `~wd~ .. ~"~~ ~ ~ =~ ' _ ~~ ~~-~J~trr~~~3~C~~6cs~s . , z ~ ~.. < , ..,,... ,:; , 5/7/2007 19:00 - 21;00 2.00 PULD_ BHA PR1 DRL PJSM;Lay down BHA ,Lay out tools and clear rig floor 21:00 - 21:30 0.50 PULD_ LOG PR1 EVL PJSM; Rig up wireline and pick-up Quad combo tools 21:30 - 04:00 6.50 RUNPU ELEC I PR1 EVL Run,pull Quad combo tools on "E" line.ln open hole Tagged bottom at 8923' Wireline measurement. Log F/8923' to 6548'. 04:00 - 06:00 , 2.00 RUNPU ELEC PR1 EVL Start logging inside casing from 6543' Wireline depth. I I Corrected depth back to original csg. 6548'. 5/8/2007 06:00 - OT.00 07:00 - 10:00 1.00 ~ 3.00 LOG TRIP OH DP PR1 EVL PR1 EVL I PJSM. POOH and UD Weatherford Quad combo E/L tools. ~ M/U 5" mule shoe sub. RIH to CSG shoe @ 6548'. 10:00 - 10:30 ~ 0.50 SERVIC RIG PR1 EVL ~ Service rig. 10:30 - 12:30 2.00 ~ REPAIR RIG_ PR1 EVL ~ Repair #1 charge pump. 1230 - 13:30 1330 - 15:30 1.00 i 2.00 ~ TRIP CIRC DP MUD PR1 EVL PR1 EVL ~ Cont. RIH to 8903'. ! Circ. clean 450GPM, 1100psi, 45RPM. Max trip gas 65units. 15:30 - 16:30 ~ 1.00 TRIP_ DP PR1 EVL j POOH to 7890'. 1630 - 05:00 12.50 LOG_ ~ OH_ PR1 EVL I R/U Weatherford loggers./ Make up MFT tools RIH to 8804' ~ ~ i Log from 8804',Test Points-8804',8776',8469',8463',8446',8330',8138', ; 8080',8031'8003',7985',7936', 05:00 - 06:00 1.00 LOG_ OH PR1 EVL i POOH With MFT. 5!9/2007 06:00 - 06:30 0.50 LOG OH ~ PR1 EVL ~ POOH W/MFTand set back E/L tools. 06:30 - 07:00 0.50 LOG OH PR1 EVL POOH w/5" DP to 7386'. 07:00 - 14:30 7.50 LOG_ ~ OH_ PR1 EVL i R/U Weatherford tools. RIH. Pertorm MFT @ 7668', 7658', 7637', 7530', 7512. POOH and R/D Weathertord. 14:30 - 15:00 15:00 - 19:00 0.50 4.00 CIRC TRIP_ MUD DP~ PR1 EVL PR1 EVL ( PJSM;Pump Dry job i PJSM;POOH W/ 5" Muleshoe. j i Moved to completion phase @ 19:OOhrs 5/08/2007 Printed: 8/27/2007 11:44:06 AM • ~ ! ~ • ~ • ~ . ~ Legal Well Name: KENAI BELUGA UNIT 12-5 Common Well Name: KENAI BELUGA UNIT 12-5 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING 6/27/2007 23:48 - 00:15 ~ 0.45 RUNPU COIL CMPSTM 00:15 - 01:31 I 1.27 RUNPU COIL CMPSTM 01:31 - 01:55 ~ 0.40 RUNPU COIL CMPSTM 01:55 - 02:30 ~ 0.58 RUNPU COIL CMPSTM 02:30 - 03:20 0.83 RUNPUI ~ COIL CMPSTM 03:20 - 06:00 ( 2.67 i CMPFLW 6/28/2007 06:00 - 08:00 2.00 FLOW TEST CMPFLW 08:00 - 16:30 8.50 FLOW TEST CMPFLW i 16:30 - 06:00 13.50 FLOW TEST CMPFLW i 6/29/2007 ( 06:00 - 10:00 4.00 FLOW _ TEST CMPFLW 8l15/2007 ( 0730 - 08:30 ~ 1.00 ~ SAFETY ~ MTG_ I CMPFLW 08:30 - 09:00 I 0.501 RURD I ELEC I CMPFLW 09:00 - 09:20 0.33 RURD ELEC CMPFLW 09:20 - 10:02 0.70 RUNPU ELEC CMPFLW 10:02 - 10:04 0.03 RUNPU ELEC CMPFLW 10:04 - 10:09 0.08 RUNPU ELEC CMPFLW 10:09 - 10:10 ~ 0.02 RUNPU ELEC CMPFLW 10:10 - 10:12 ; 0.03 RUNPU ELEC CMPFLW 10:12 - 10:13 ~ OA2 RUNPU ELEC CMPFLW 10:13 - 10:16 ~ 0.05 RUNPU ELEC CMPFLW 10:16 - 10:18 i 0.03 RUNPU ELEC CMPFLW 10:18 - 10:19 ~ 0.02 RUNPU ELEC CMPFLW 10:19 - 11:10 ~ 0.85 RUNPU ELEC CMPFLW 11:10 - 11:20 I 0.17 RURD ELEC CMPFLW 11:20 - 11:40 ~ 0.33 RURD ELEC CMPFLW 11:40 - 11:55 ~ 0.25 RURD ELEC CMPFLW 11:55 - 12:10 ~ 0.25 RURD ELEC CMPFLW 12:10 - 12:25 0.25 RUNPU ELEC CMPFLW 12:25 - 14:02 1.62 RUNPU ELEC CMPFLW 14:02 - 14:20 ' 0.30 RUNPU ELEC CMPFLW 14:20 - 1425 ~ 0.08 RUNPU ELEC CMPFLW 14:25 - 15:30 ( 1.08 RUNPU ELEC CMPFLW 15:30 - 16:00 ~ 0.50 RUNPU ELEC CMPFLW 16:00 -16:15 I 0.25 RUNPULI ELEC CMPFLW 16:15 - 16:22 i 0.12 RUNPUL~ ELEC CMPFLW 16:22 - 17:00 I 0.631 RUNPUl1 ELEC I CMPFLW Spud Date: 4/20/2007 Start: 6/12/2007 End: Rig Release: Group: Rig Number: 1 Continue working CT from PBTD to top Pert @ 7500'. Reduced N2 to 500 SCFM jetting from bottom. PU to 7250' Jetted @ 500 SCFM for 25 mins. Stopped N2, let well flow @ 286 psi WH rec sand. Well flowing to surFace @ 227 PSIG WH. Total N2 puped = 277,000 SCF. POOH w/CT Rig back CT. Tumed well over to weN testers. Continue unloading well, by-passing test seperator. WHP = 150 - 300 psi / WHT = 45 degrees / 200-400 bwpd Cont to flow well to tank Flowing well through test equip. Int rate 1.137 mmscfd @ 176psi with 200 bwpd. Placed well to low pressure sales. Int rate 1.774 mmscfd @ 260 psi with 100 bwpd. 05:00 rate 2.265 mmscfd @ 355 psi with 43 bwpd. Cont to test well and turned over to production to allow test equip mobilization to KBU 34-6. Int rates to production were 2.6 mmscFd @ 360psi with 50 bwpd. Well continuing to clean up. Final Report. Hold PJSM and obtain Safe Work permit. Discuss overhead loads, man lift safety. "Don't work under the man lift". PU 1" swage, 2- 1-11/16" weight bars, 2-1/4" fluted centralizer, spange jars. PU lubricator. PTest lubricator to 1000 psi. Test good. RIH with 1" swage, and 2-1/4" fluted centralizer. (398 psi on well. Well flowing 2.4 MMc Sat down on module #7 flapper at 8109'. Broke thru #7. Proceed down hoel Sat down on module #4 flapper at 8347'. Broke thru #4. Proceed down hole. Sat down @ module #3 flapper at 8475'. Broke thru #3. proceed down hole. Sat down @ mocule 2 flapper at 8790". Broke thru #2. Proceed down hole. Tagged TD @ 8809.. Moddule #1 perfs 8806'-8816'. POOH. OOH. PU PLT string. QTS pressure test. test good, Open well to RIH. (406 psi on well) RIH. Spinner stopped. past wellhead. POOH. Spinner full of grease. RIH. Spinner stopped. past welihead. POOH. Spinner full of grease. PU 2.812 GR/junk basket and make two passes thru wellhead. MU PLT string and RIH. (458 PSI on well) Run 90 fpm down pass. Good spinner above Module #8. Loossin spinner siqnal at Module #3 End 90 fpm down pass. PU 90 fpm up pass ( 8790') End 90 fpm down pass (7300'). Start 60 fpm down pass. End 60 fpm down pass (8790'). Start 60 fpm up pass, End 60 fpm up pass (7300'). Start 30 fpm down pass. Having trouble with spinner. Loosing signal above Module #8, which has been the best interval thus far. Decide to run 120 fpm to get better spinner action. Pull up to 7300' start 120 ipm down pass. End 120 fpm down pass (8500'). Start 120 fpm up pass. No spinner signal below Module #3. Had problems getting stuck in Modules #1 and 2 on previous run. Elect not to go down below 8500'. End 120 fpm up pass(7300'). POOH. Printed: 827/2007 11:5128 AM • ~ ~ ~ ~~~~~ ~ ~'~~ :~ %~,y~ ~ ~~~~~ " ~ ~~~~ ~I ~z ~ ~ ~ _ 5 P~~B ~ ~f ~; ' ~~ ~~ ~ ~~ ..,; ~ ~~~ ~5~. ~ ~ : ~ "~ a~ ~ ~ F '.~~'~~? '- ~i ~i~~~/~~~ ~'~~~~~ ~~~i ~~ ~~ f .a~ ~" r i ~1 ~ _,,;: ~' " ~ : ,: : - _ r ..: s ' ' ' ' ~~~ r! .... , : ~ .s,* . ~ :~ . , , . ,: ck t ,.,,- , , i „ -„ ;- ..,,.a.~. . . ,,, a~„i'ema ": '~. , ,..a~a,,.z..=l z .~ . :~ Legal Well Name: KENAI BELUGA UNIT 12-5 Common Well Name: KENAI BELUGA UNIT 12-5 Spud Date: 4/20/2007 Event Name: ORIGINAL COMPLETION Start: 6/12/20 07 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRlLLING Rig Number: 1 ~~y ~ ~ ~ ~ ~} ~ ~'~ ~~~f ~y " '~ ~ ~ 7~ ~ ~~ ~~ ~~ ~ i y / - ~ { ' , „, . - ' : . f fa~ ~ ' ,~ . i : ..:~ ~~ - . , -: : ~: ~~~~" \ ~ ,il~ ~'~/~ ~~/ ' ~~ ,~; . . . . „ „ ...,..r,~ . _.~- . . ~ . . , 5/.. ..,....;.~. .... ::: ... ...... ~- ::.. .. : : . . . .. . . ,-. „ i /. r .'~ ..,,,..,, . ,,, i,,, „ ~ ~ , • ) 8/15/2007 ~ ~ ~ ~ i ~ ~ I ~ I i 17:00 -17:10 0.17 I f2URD ELEC ~ CMPFLW OOH. Rig down. Move to KBU 34-6. i i i i i t i i i ~ I ~ I Printed: 8l27/2007 11:51:28 AM KBU12-5 ~ • Major Minor Vertical Course Vertical Grid Grid Build Turn Semi- Semi- Semi- Minor MD Length Inc Azimuth TVD Section North East East North DLS Rate Rate Axis Axis Axis Axis Azim US survey US survey feet feet deg deg feet feet feet feet ft ft deg/100ft deg/100ft deg/100ft feet feet feet deg 0 0 0 0 0 0 0 0 274849.98 2362041.2 0 0 0 0 0 0 0 212 212 0.19 63.08 212 0.31 0.16 0.31 274850.3 2362041.4 0.09 0.09 0 0.22 0.22 2.31 127.815 272 60 0.29 135.31 272 0.37 0.1 0.51 274850.49 2362041.3 0.49 0.17 120.38 0.34 0.34 2.32 121.852 333 61 0.22 95.18 333 0.4 -0.02 0.73 274850.71 2362041.2 0.31 -0.11 -65.79 0.48 0.46 2.33 119.943 392 59 1.48 37.79 391.99 1.21 0.57 1.31 274851.3 2362041.8 2.33 2.14 -97.27 0.68 0.58 2.34 83.404 452 60 2.93 43.18 451.95 3.5 2.3 2.84 274852.86 2362043.5 2.44 2.42 8.98 0.98 0.74 2.36 83.761 513 61 4.09 42.9 512.83 7.2 5.03 5.39 274855.46 2362046.2 1.9 1.9 -0.46 1.13 0.94 2.37 101.625 574 61 5.87 40.86 573.6 12.45 8.98 8.91 274859.06 2362050 2.93 2.92 -3.34 1.31 1.08 2.39 110.759 632 58 8.09 39.01 631.16 19.47 14.4 13.42 274863.67 2362055.4 3.85 3.83 -3.19 1.56 1.23 2.4 115.409 693 61 9.79 34.85 691.42 28.94 21.99 19.08 274869.48 2362062.8 2.98 2.79 -6.82 1.82 1.41 2.42 115.03 753 60 11.95 35.1 750.34 40.25 31.26 25.57 274876.14 2362072 3.6 3.6 0.42 2.04 1.63 2.44 111.067 816 63 12.83 36.15 811.87 53.77 42.24 33.45 274884.22 2362082.8 1.44 1.4 1.67 2.26 1.9 2.46 110.643 879 63 13.8 34.68 873.18 68.27 54.07 41.85 274892.84 2362094.5 1.63 1.54 -2.33 2.41 2.19 2.49 100.487 942 63 15.26 34.15 934.16 84.08 67.11 50.78 274902.02 2362107.4 2.33 2.32 -0.84 2.63 2.45 2.52 72.762 1005 63 17.52 34.51 994.6 101.85 81.79 60.81 274912.32 2362121.8 3.59 3.59 0.57 2.97 2.68 2.54 53.518 1068 63 20.02 34.88 1054.24 122.12 98.45 72.35 274924.18 2362138.3 3.97 3.97 0.59 3.4 2.96 2.57 45.262 1131 63 21.62 36.33 1113.13 144.51 116.65 85.39 274937.56 2362156.2 2.67 2.54 2.3 3.89 3.21 2.61 40.836 1195 64 22.34 37.09 1172.48 168.45 135.85 99.71 274952.24 2362175.2 1.21 1.12 1.19 4.42 3.39 2.66 38.496 1258 63 23.17 36.74 1230.57 192.8 155.33 114.35 274967.24 2362194.4 1.33 1.32 -0.56 4.97 3.53 2.71 37.886 1321 63 25.37 35.98 1288 218.68 176.19 129.69 274982.98 2362214.9 3.53 3.49 -1.21 5.56 3.71 2.75 37.678 1385 64 27.88 34.78 1345.21 247.36 199.58 146.29 275000.01 2362238 4.01 3.92 -1.87 6.21 3.96 2.82 37.604 1448 63 30.94 33.72 1400.08 278.29 225.16 163.68 275017.89 2362263.2 4.93 4.86 -1.68 6.92 4.23 2.89 37.481 1510 62 33.43 32.88 1452.55 311.3 252.76 181.81 275036.53 2362290.5 4.08 4.02 -1.35 7.68 4.5 2.99 37.183 1573 63 35.42 33.25 1504.52 346.9 282.6 201.24 275056.53 2362320 3.18 3.16 0.59 8.49 4.73 3.09 36.699 1637 64 37.19 34.04 1556.09 384.78 314.15 222.24 275078.12 2362351.1 2.86 2.77 1.23 9.36 4.95 3.2 36.194 1701 64 38.86 34.15 1606.51 424.2 346.79 244.34 275100.83 2362383.3 2.61 2.61 0.17 10.28 5.17 3.32 35.847 1764 63 40.79 34.99 1654.89 464.55 380.01 267.23 275124.35 2362416.1 3.18 3.06 1.33 11.21 5.38 3.45 35.653 1826 62 43.44 36.22 1700.88 506.12 413.8 291.45 275149.2 2362449.4 4.48 4.27 1.98 12.18 5.6 3.6 35.537 1890 64 46.51 36.58 1746.15 551.33 450.21 318.29 275176.73 2362485.3 4.81 4.8 0.56 13.24 5.85 3.79 35.506 2014 124 45.39 37.45 1832.36 640.37 521.37 371.94 275231.71 2362555.4 1.03 -0.9 0.7 15.17 6.14 4.16 35.665 2141 127 44.61 37.63 1922.16 730.06 592.58 426.65 275287.76 2362625.6 0.62 -0.61 0.14 17.02 6.21 4.32 35.93 2266 125 42.75 34.53 2012.57 816.33 662.3 477.51 275339.93 2362694.3 2.27 -1.49 -2.48 18.86 6.33 4.54 35.889 2391 125 42.7 34.25 2104.4 901.14 732.29 525.41 275389.15 2362763.4 0.16 -0.04 -0.22 20.73 6.51 4.81 35.584 2517 126 42.75 35.17 2196.96 986.63 802.56 574.09 275439.14 2362832.7 0.5 0.04 0.73 22.61 6.66 5.04 35.519 2644 127 43.56 34.61 2289.61 1073.49 873.82 623.78 275490.17 2362903 0.71 0.64 -0.44 24.54 6.86 5.3 35.481 2771 127 44.55 34.92 2380.88 1161.8 946.36 674.13 275541.88 2362974.6 0.8 0.78 0.24 26.53 7.11 5.61 35.443 2897 126 45.69 36.07 2469.79 1251.07 1019.04 725.98 275595.09 2363046.3 1.11 0.9 0.91 28.55 7.38 5.95 35.443 3023 126 43.89 35.53 2559.2 1339.81 1091.03 777.9 275648.37 2363117.3 1.46 -1.43 -0.43 30.59 7.68 6.34 35.455 3149 126 46.54 36.22 2647.96 1429.21 1163.48 830.32 275702.15 2363188.7 2.14 2.1 0.55 32.64 8.04 6.79 35.473 3275 126 45.77 36.55 2735.24 1520.04 1236.64 884.22 275757.42 2363260.8 0.64 -0.61 0.26 34.75 8.43 7.27 35.52 3401 126 45.61 37.11 2823.25 1610.14 1308.8 938.27 275812.82 2363332 0.34 -0.13 0.44 36.84 8.76 7.68 35.608 3527 126 45.4 36.66 2911.56 1699.95 1380.69 992.21 275868.12 2363402.8 0.3 -0.17 -0.36 38.94 9.1 8.08 35.688 ~ 3654 127 45.11 37.32 3000.96 1790.07 1452.74 1046.5 275923.74 2363473.8 0.43 -0.23 0.52 41.04 9.45 8.49 35.764 3780 126 44.87 37.81 3090.08 1879.04 1523.35 1100.8 275979.37 2363543.4 0.33 -0.19 0.39 43.13 9.81 8.91 35.861 3907 127 44.09 35.67 3180.69 1967.95 1594.64 1154 276033.94 2363613.7 1.33 -0.61 -1.69 45.22 10.19 9.34 35.908 4034 127 43.84 36.02 3272.1 2056.09 1666.11 1205.7 276086.92 2363684.1 0.27 -0.2 0.28 47.3 10.58 9.77 35.904 4160 126 43.66 36.49 3363.12 2143.19 1736.37 1257.2 276139.76 2363753.4 0.29 -0.14 0.37 49.34 10.98 10.2 35.925 4224 64 43.66 36.72 3409.42 2187.35 1771.84 1283.5 276166.77 2363788.4 0.25 0 0.36 50.38 11.18 10.41 35.942 4287 63 42.87 36.51 3455.3 2230.5 1806.5 1309.3 276193.18 2363822.5 1.27 -1.25 -0.33 51.4 11.38 10.63 35.959 4350 63 41.9 36.05 3501.83 2272.95 1840.73 1334.4 276218.95 2363856.3 1.62 -1.54 -0.73 52.4 11.58 10.84 35.968 4413 63 41.74 35.41 3548.78 2314.95 1874.83 1358.9 276244.12 2363889.9 0.72 -0.25 -1.02 53.38 11.79 11.05 35.966 4476 63 41.61 36.27 3595.84 2356.83 1908.79 1383.5 276269.29 2363923.4 0.93 -0.21 1.37 54.37 11.99 11.25 35.967 4539 63 40.12 35.77 3643.48 2398.04 1942.12 1407.7 276294.15 2363956.3 2.42 -2.37 -0.79 55.34 12.2 11.46 35.97 4603 64 39.22 35.13 3692.74 2438.89 1975.4 1431.4 276318.48 2363989.1 1.54 -1.41 -1 56.29 12.42 11.67 35.964 4666 63 38.99 35.18 3741.63 2478.62 2007.89 1454.3 276341.97 2364021.1 0.37 -0.37 0.08 57.23 12.62 11.86 35.953 4729 63 38.53 35 3790.76 2518.06 2040.17 1477 276365.25 2364053 0.75 -0.73 -0.29 58.15 12.83 12.05 35.942 4792 63 37.62 33.87 3840.35 2556.91 2072.21 1498.9 276387.82 2364084.6 1.82 -1.44 -1.79 59.06 13.04 12.24 35.921 4854 62 37.02 32.79 3889.66 2594.49 2103.61 1519.6 276409.06 2364115.6 1.43 -0.97 -1.74 59.94 13.25 12.43 35.885 ~ 4919 65 36.35 32.58 3941.78 2633.3 2136.29 1540.6 276430.65 2364147.9 1.05 -1.03 -0.32 60.85 13.47 12.61 35.84 4982 63 34.85 32.82 3993.01 2669.95 2167.15 1560.4 276451.04 2364178.3 2.39 -2.38 0.38 61.7 13.68 12.79 35.799 5045 63 34.22 32.64 4044.91 2705.65 2197.2 1579.7 276470.92 2364208 1.01 -1 -0.29 62.53 13.89 12.97 35.76 5108 63 34.09 33.11 4097.04 2741 2226.9 1598.9 276490.67 2364237.3 0.47 -0.21 0.75 63.36 14.1 13.13 35.725 5171 63 33.28 33.49 4149.46 2775.93 2256.11 1618.1 276510.4 2364266.2 1.33 -1.29 0.6 64.18 14.31 13.3 35.697 5234 63 32.49 33.39 4202.37 2810.13 2284.65 1636.9 276529.79 2364294.4 1.26 -1.25 -0.16 64.98 14.51 13.46 35.671 5298 64 31.55 33.32 4256.63 2844.05 2312.99 1655.6 276548.98 2364322.3 1.47 -1.47 -0.11 65.77 14.73 13.62 35.646 5361 63 29.61 32.85 4310.86 2876.09 2339.85 1673.1 276566.98 2364348.9 3.1 -3.08 -0.75 66.51 14.93 13.77 35.619 5424 63 29.01 32.46 4365.8 2906.91 2365.81 1689.7 276584.11 2364374.5 1 -0.95 -0.62 67.23 15.14 13.92 35.59 5487 63 28.11 31.72 4421.13 2937 2391.33 1705.7 276600.59 2364399.7 1.53 -1.43 -1.17 67.93 15.34 14.06 35.556 5549 62 27.04 31.27 4476.09 2965.66 2415.8 1720.7 276616.05 2364423.9 1.76 -1.73 -0.73 68.6 15.53 14.19 35.519 5614 65 26.43 30.97 4534.14 2994.84 2440.83 1735.8 276631.63 2364448.6 0.96 -0.94 -0.46 69.28 15.73 14.33 35.478 5677 63 25.87 31 4590.69 3022.55 2464.63 1750.1 276646.38 2364472.2 0.89 -0.89 0.05 69.92 15.92 14.46 35.439 5740 63 24.96 31.57 4647.59 3049.54 2487.74 1764.2 276660.85 2364495 1.5 -1.44 0.9 70.55 16.11 14.58 35.405 5803 63 23.9 31.63 4704.95 3075.56 2509.93 1777.8 276674.92 2364516.9 1.68 -1.68 0.1 71.16 16.3 14.7 35.375 5865 62 23.17 31.3 4761.79 3100.28 2531.05 1790.7 276688.24 2364537.8 1.2 -1.18 -0.53 71.73 16.48 14.82 35.346 5927 62 22.41 30.46 4818.95 3124.24 2551.66 1803.1 276700.95 2364558.2 1.33 -1.23 -1.35 72.29 16.66 14.93 35.314 5991 64 21.11 30.02 4878.39 3147.9 2572.15 1815 276713.29 2364578.4 2.05 -2.03 -0.69 72.84 16.83 15.04 35.278 6054 63 19.67 30.71 4937.44 3169.78 2591.09 1826.1 276724.74 2364597.2 2.32 -229 1.1 73.35 17.01 15.15 35.247 6117 63 18.58 31.01 4996.97 3190.38 2608.81 1836.7 276735.66 2364614.7 1.74 -1.73 0.48 73.83 17.17 15.25 35.221 6180 63 17.52 30.63 5056.86 3209.86 2625.57 1846.7 276745.98 2364631.2 1.69 -1.68 -0.6 74.28 17.34 15.34 35.197 • 6243 63 16.27 30.31 5117.14 3228.12 2641.35 1856 276755.56 2364646.8 1.99 -1.98 -0.51 74.7 17.49 15.43 35.173 6306 63 15.26 30.87 5177.77 3245.19 2656.09 1864.7 276764.54 2364661.4 1.62 -1.6 0.89 75.1 17.64 15.52 35.151 6370 64 14.02 32.09 5239.69 3261.34 2669.89 1873.1 276773.24 2364675 2 -1.94 1.91 75.48 17.78 15.61 35.135 6433 63 13.06 31.86 5300.94 3276.07 2682.4 1880.9 276781.29 2364687.4 1.53 -1.52 -0.37 75.82 17.92 15.69 35.123 6496 63 11.62 32.95 5362.49 3289.52 2693.77 1888.1 276788.71 2364698.6 2.32 -2.29 1.73 76.14 18.05 15.77 35.114 6607 111 9.7 33.5 5471.56 3310.05 2710.95 1899.4 276800.28 2364715.6 1.73 -1.73 0.5 76.58 18.19 15.89 35.106 6670 63 7.74 32.02 5533.83 3319.6 2718.97 1904.6 276805.61 2364723.5 3.13 -3.11 -2.35 76.77 18.21 15.95 35.1 6733 63 6.96 30.53 5596.32 3327.64 2725.86 1908.8 276809.92 2364730.3 1.27 -1.24 -2.37 76.93 18.23 16.01 35.091 6797 64 6.15 27.25 5659.9 3334.91 2732.24 1912.3 276813.58 2364736.6 1.39 -1.27 -5.13 77.08 18.24 16.07 35.079 6859 62 5.46 25.19 5721.58 3341.11 2737.87 1915.1 276816.47 2364742.2 1.16 -1.11 -3.32 77.2 18.25 16.13 35.064 6923 64 4.61 23.67 5785.33 3346.64 2742.98 1917.4 276818.89 2364747.3 1.34 -1.33 -2.37 77.31 18.26 16.19 35.048 6986 63 4.16 24.18 5848.15 3351.37 2747.38 1919.3 276820.93 2364751.6 0.72 -0.71 0.81 77.4 18.27 16.25 35.033 7049 63 3.14 23.27 5911.02 3355.31 2751.05 1921 276822.61 2364755.3 1.62 -1.62 -1.44 77.48 18.28 16.32 35.021 7112 63 2.36 21.21 5973.94 3358.26 2753.84 1922.1 276823.82 2364758.1 1.25 -1.24 -3.27 77.54 18.29 16.38 35.011 7175 63 1.57 15.47 6036.91 3360.34 2755.89 1922.8 276824.55 2364760.1 1.29 -1.25 -9.11 77.59 18.31 16.45 35.002 7238 63 1.13 11.92 6099.89 3361.73 2757.32 1923.2 276824.94 2364761.5 0.71 -0.7 -5.63 77.62 18.32 16.52 34.994 ~ 7302 64 1.17 12.23 6163.88 3362.91 2758.58 1923.4 276825.23 2364762.8 0.06 0.06 0.48 77.64 18.33 16.59 34.987 7366 64 1.07 4.97 6227.86 3364.04 2759.81 1923.6 276825.45 2364764 0.27 -0.16 -11.34 77.67 18.34 16.66 34.978 7491 125 1.14 3.85 6352.84 3366.12 276222 1923.8 276825.68 2364766.4 0.06 0.06 -0.9 77.71 18.37 16.8 34.96 7617 126 0.95 1.66 6478.82 3368.07 2764.51 1923.9 276825.83 2364768.7 0.15 -0.15 -1.74 77.76 18.4 16.95 34.941 7744 127 0.83 352.94 6605.8 3369.64 2766.48 1923.9 276825.79 2364770.6 0.14 -0.09 -6.87 77.8 18.44 17.1 34.923 7871 127 0.92 347.9 6732.79 3371.03 2768.39 1923.5 276825.5 2364772.6 0.09 0.07 -3.97 77.83 18.47 17.26 34.903 7996 125 0.81 341.12 6857.78 3372.24 2770.21 1923 276825.04 2364774.4 0.12 -0.09 -5.42 77.87 18.51 17.42 34.881 8123 127 0.75 323.83 6984.76 3373.05 2771.73 1922.2 276824.28 2364775.9 0.19 -0.05 -13.61 77.89 18.56 17.59 34.858 8250 127 0.51 303.65 7111.76 3373.31 2772.71 1921.3 276823.34 2364776.9 0.25 -0.19 -15.89 77.91 18.6 17.77 214.838 8374 124 0.52 295.71 7235.75 3373.21 2773.26 1920.3 276822.39 2364777.5 0.06 0.01 -6.4 77.92 18.64 17.94 214.822 8500 126 0.49 288.74 7361.75 3372.98 2773.68 1919.3 276821.37 2364777.9 0.05 -0.02 -5.53 77.92 18.69 18.12 214.806 8627 127 0.4 269.11 7488.74 3372.57 2773.85 1918.3 276820.42 2364778.1 0.14 -0.07 -15.46 77.93 18.73 18.31 214.793 8753 126 0.25 238.9 7614.74 3372.06 2773.7 1917.7 276819.74 2364778 0.18 -0.12 -23.98 77.93 18.77 18.51 214.786 8867 114 0.46 246.03 7728.74 3371.45 2773.39 1917 276819.1 2364777.7 0.19 0.18 6.25 77.92 18.81 18.69 214.781 8920 53 0.46 246.03 7781.74 3371.08 2773.21 1916.6 276818.71 2364777.5 0 0 0 77.92 18.83 18.77 214.777 ~ ~ ~ • ~~ ~ ~ ~ ~ ~~ ~~~ ~. ~~ ~~ ~+ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ SARAH PALfN GOVERNOR ~~ ~ ~ ~ q ~-~ , ~:~ ~ , . : . "~ .,..+~ ~i~ ~ L ~ ~ .~ `a._...r° 1..: ~ ~ ~..f c .: ~5~~ OJW Lu`~ ~S f 333 W. 7thAVENUE, SUITE 100 COI~TSER`QA~'I011T COMI-II5SIOI~T r~' ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 FAX (907) 276-7542 Craig Rang Sr. Completions Engineer Marathon Oil Company PO Box 196168 Anchorage, AK 99519-6168 ~~ ~ 0~-~ ~ Re: Kenai Field, Upper Tyonek Beluga Gas Pool, Kena.i Beluga Unit 12-5 Sundry Number: 307-163 Dear Mr. Rang: 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 fwrther 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 /~ DATED this ~lo day of May, 2007 Encl. ~ ~ • M Marathon MARATHON Oil Company May 11, 2006 ~ ~ e~ Wl A~,c.~v y~.~2 Alaska Oil & Gas Conservation Commission 333 West 7t" Ave, Suite ~ 00 Anchorage, AK 99501 p U-`)- Reference: Application for Sundry Report 10-403 for permit 207=~ Field: Kenai Gas Field Well: Kenai Beluga Unit 12-5 (KBU 12-5) Pad: 41-7 Dear Mr. Aubert, ~~~~! V ~~ MAY ~. 4 2C10~ ~I~aska Qif & ~~s C~n~, ~catrxriissian An~har~~~ Enclosed please find an Application for Sundry Approvals form 10-403 for Kenai Beluga Unit Well #12-5 and associated attachments. This well has been completed cased hole with a 3.5" Excape monobore production string to surface. Request for approval is being made to perforate, fracture stimulate the 11 Excape modules placed in the well, and vent gas during the initial post fracture treatment flowback period. Should you require further information, I can be reached at 907-283-1372 / 907-394- 1824, or by e-mail at Crang@MarathonOil.com. Sincerely, /~ ~ "4 ~ .~~/ U Craig Rang Completions Engineer CR Enclosures: AOGCC Form 10-403 Well bore Diagram Description Summary of proposal Request for approval to vent gas KBU 12-5 Cover Letter AOGCC Form 10-403.doc Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 5/10/2007 11:15:52 PM STATE OF AL~KA`~~ Sy~~ ALA~ OIL AND GAS CONSERVATION COMM~ION ~5; ~~,, APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1. Type of Request: Abandon Suspend Operational shutdown Perforate ~ Waiver I1C~i01~~r Alter casing ~ Repair well ~ Plug Perforations ^ Stimulate 0 Time Extension ~ Change approved program ~ Pull Tubing ~ Perforate New Pool ~ Re-enter Suspended Well ~ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: MARATHON OIL COMPANY Development Q Exploratory ~ 207-042 ' 3. Address: Stratigraphic ^ Service ~ 6. API Number: P.O. BOX 196168, ANCHORAGE ,AK 99519-6168 50-133-20567-00 ' 7. KB Elevation (ft): 9. Well Name and Number: 88 feet (21 feet AGL) ~ Kenai Beluga Unit 12-5 8. Property Designation: ~E~ ~ 10. Field/Pools(s): A~61L - 028142 S~/,f-d~ Kenai Gas Field/Beluga - Upper Tyonek Pool ~ 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 8920' 7782' 8864' 7725' NA NA Casing Length Size MD ND Burst Collapse Structural Conductor 106 20" 127 127 3060 1500 Surface 1939 13 3/8" 1960 1792 3450 1950 Intermediate 6047 9 5/8" 6068 4950 5750 3090 Production 8880 31/2" 8901 7762 10160 10540 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): eleven int. 7513'-8816'. eleven int. 6375'- 7680' 3-1/2" L-80 8901' Packers and SSSV Type: Packers and SSSV MD (ft): N/A N/A 12. Attachments: Description Summary of Proposal ~ 13. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ^ Exploratory ^ Development ^~ Service ^ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 6/4/2007 Oil ~ Gas ^~ Plugged ^ Abandoned ~ 16. VerbalApproval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Craig Rang Title Sr. Completions Engineer Signature ° Phone 907-283-1372 Date May 11, 2006 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: v~ ~' ~ Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ~ Location Clearance ~ Other: ~Di~ `~~ C"c.~v'Let`^~v~~~~c~~P~1~L~-Scaob~~~~ ) +~ ~.. t SL ~P ~v~p~~-~,~c-~~ r~r~~a-~ ~a~-~ Subsequent Form Required: ~~~ APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ~/(p "O~ ( Form 10-403 Revised 07/2005 ORIGINAL ~ ~~~AY~~~~a~ RECEIVED MAY 1 4 2007 Alaska Oil & Gas Cons. Commissioi Submit in Duplicate • • ~KBU 12-5 Fracture Stimulation Desription Summary of Proposal Kenai Beluga 12-was drilled and cased as a 3.5" Monobore Excape completion containing eleven Excape perforating modules. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Fracture stimulation operations will commence with the perforating and treatment of Module 1 followed by modules 2 through 11. All fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been perFormed, coiled tubing will be utilized to cleanout the wellbore of module isolation flappers and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant, that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Kenai Gas Field, typical vent times are less than 48 hours. However, due to the uncertainty of exactly how long KBU 12-5 will be required to vent to atmosphere, this request is for a maximum vent period of 72 hours with a maximum vent volume during that period of 6 MMCF of inethane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please get in touch with the contact person indicated on the Form 403. ` M ~ RT-GL: 21.00' RT-THF: 21.70' 27' FSL, 1060' FEL, Sec. 6, T4N, R11 W, S.M. ree cxn = 4-3/4" Otis TOC (est.) - 500' above 9-5/8" shoe Prod. Tubinq: 3-1/2", 9.3 ppf, L-80, EUE 8rd with 6.25" OD control line protectors to 8901' RKB. Cmt w/ 220 bbls Class G Cmt at 15.8 Excape Svstem Details - Ceramic flapper valves below each module as follows: Module 1 - NA Module 2 - 8790' Module 3 - 8475' Module 4 - 8347' Module 5 - 8302' Module 6 - 8159' Module 7 - 8109' Module 8 - 8050' Module 9 - 8006' Module 10 - 7956' Module 11 - 7538' KB U 12-5 ~ M Mw~ewrNOM Drive Pipe: 20", 133 ppf, K-55, to 127' RKB Surface Casinq: 13-3/8", 68 ppf, J-55, BTC @ 1960' RKB, Cmt w/ 262 bbls / of Class G Type 1 at 12.5 ppg. Int. Casinq: 9-5/8", 40 ppf, L-80, BTC @ 6548' RKB. Cmt w/ 105 bbl of class G lead @ 12.5 ppg and 84.5 bbls Class G tail @ 13.5 ppg - 11 Excape modules placed - Green control line for module 1 - Yellow control line for modules 2 thru 5 - Red control line for modules 6 thru 11 - Ceramic flapper valves below each module except for module 1 Perfs MD (RKB) (Beluqa/Tvonek Zonesl: Module 1 - 8806 - 8816' (Tyonek) Module 2 - 8764 - 8774' (Tyonek) Module 3 - 8452 - 8462' (Tyonek) Module 4 - 8322 - 8332' (Beluga) Module 5 - 8277 - 8287' (Beluga) Module 6 - 8132 - 8142' (Beluga) Module 7 - 8084 - 8094' (Beluga) Module 8 - 8029 - 8039' (Beluga) Module 9 - 7978 - 7988' (Beluga) Module 10 - 7928 - 7938' (Beluga) Module 11 - 7513 - 7523' (Beluga) Well Name 8~ Number: KBU 12-5 Lease: Kenai Gas Field County or Parish: Kenai State/Prov. Alaska Country: USA Perforations (MD) See Above (TVD) Angle/Perfs Angle @ KOP and Depth BHP: BHT: Completion Fluid: 6% KCL Dated Completed: 5/10/2007 Prepared By: C. A. Meese Last Revison Date: 5/10/2007 5/10/2007 11:05 PM TD - 8920' PBTD - 8864' r jj ill •perations Summary Report by J• Marathon Oil Well Name: KENAI BELUGA UNIT 12 -5 ?TV V Zolb Qtr /Qtr, Block, Sec, Town, Range Field Name License # State /Province Country Northing - 274,849.98', Easting - 2,3620,41.22' KENAI ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 0.00 66.00 87.00 21.00 4/20/2007 5/9/2007 Daily Operations Report Date: 6/12/2007 Job Category: COMPLETION 24 Hr Summary MIRU Expro to run CBL log. - - - - - Ops Trouble - Start Time End Time Dur (hr) Ops Code Activity Code Status - Code Com 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM and obtain Safe Work Permit. 08:30 09:30 1.00 RURD ELEC AF MIRU logging truck. PU lubricator and wireline BOP's. PU CBL tool string. 09:30 10:30 1.00 RURD ELEC AF Start in hole with tool string. 10:30 11:15 0.75 PULD LOG AF Run free pipe pass. Run to bottom. 11:15 11:30 0.25 PULD LOG AF Tag bottom @ 8815'KB. 11:30 13:20 1.83 LOG CSG AF Start main pass log. 13:20 13:45 0.42 LOG CSG AF End up pass @ 5500'. POOH. 13:45 14:45 1.00 RURD ELEC OOH. Close swab and master valves. Rig down. Report Date: 6/25/2007 Job Category: COMPLETION 24 Hr Summary Frac crew set up. Pressure test and fired Mod 1. Pressure test flow back iron to 4500 psi. - - - - Ops - Trouble . Start Time -. End Time Dur(hr) Ops Code .. Activity Code • - Status . Code - Com - . 08:00 09:30 1.50 SAFETY MTG AF Held pre frac safety meeting. 09:30 10:00 0.50 PREP LOC AF Work through equipment warm up and pre frac ops check. 10:00 10:30 0.50 PERF CSG Pressure test and shot Module 1 with good results. 10:30 17:00 6.50 PREP LOC AF Verify all equipment ready for frac operations. PT flow back iron to 4500 psi. Report Date: 6/26/2007 Job Category: COMPLETION 24 Hr Summary Safety meeting. PT well test and frac lines. Screened out, tried to flow back. Called in Coil. RU Coil Tubing. RIH w/ CT. Tag Sand @ 5300'. Circulate Sand to Coil Tbg PBTD © 8840'. Circ Hole Clean. POOH w/ CT. Shutin Well. RD CT. SDFN. . Ops Trouble - - Start Time ,: End Time Dur(hr) - Ops Code Activity Code . Status - Code Com 07:30 08:30 1.00 SAFETY MTG AF Held pre frac safety meeting. Discussed slips trips and falls, high pressure frac ops, flowback, frac tracing, etc. 08:30 08:55 0.42 RURD STIM AF Pressure test frac lines to 9500 psi. Good Test. Gel up for frac job. Test Nitro lines. 08:55 11:00 2.08 PUMP FRAC AF Open well. 720 psi. Begin frac ops on Module No. 1 (8806 - 8816'). Initiate frac with BJ Lightning 1800 frac fluid. Broke down the perfs 4300 psi STP at 1.5 bpm. Screened out with 8.0 ppa on the perfs placing 8949 Ibs 20/40 frac sand in the formation and leaving 6177 Ibs in the well. Attempted to flow back the well with no success. Call Coil Tubing. 11:00 12:30 1.50 FLOW BACK AF Open well and attempt to flow back tubing volume. Weill flowed back 30 bbls and died. 12:30 12:45 0.25 PUMP FRAC AF Attempt to pump flush volulme to module 2. Pumped total of 25 bbls and pressured three separate times without success. Oopen well to flowback. Call for coil tubing. 12:45 15:00 2.25 FLOW BACK AF Monitor flow back waiting on coil tubing. 15:00 17:00 2.00 RURD COIL AF Hold prejob safety meeting. RU CTU. STab injector head. PT to 4500/250 psig. Load coil tubing. 17:00 20:30 3.50 RUNPUL COIL AF RIH @ 25 ft/min pump pressure @ 1500 psi with CT pumping 2 bpm. Tag Sand @ 5300' @ 19:30 hrs. See Sand Returns @ Surface @ 17:45 hrs. Increase CT running rate to 50 ft/min. Pump Pressure @ 1750 psi, pumping 2 bpm, Wellhead pressure @ 150 psi. Increase CT running rate to 80 ft/min. Pump Pressure @ 1750 psi, pumping 2 bpm, Wellhead pressure @ 150 psi. r Stop @ 6800' and conducted Pull test on Coil Tubing. Continue running CT in J t u !� 1 ,t) '1L, hole @ rate of 80 ft/min. Pump Pressure © 1900 psi, pumping 2 bpm, Wellhead pressure @ 100 psi. Stop @ 7800' and conducted Pull test on Coil Tubing. Continue running CT in hole © rate of 30 ft/min. Pump Pressure @ 2000 psi, pumping 2 bpm, Wellhead pressure @ 121 psi. Increased Coil Tubing running rate to 52 ft/min @ 8300'. Pump Pressure @ 2100 psi, pumping 2 bpm, Wellhead pressure @ 120 psi. Tag PBTD @ Coil Tubing depth of 8840'. PBTD Should be @ 8864' (Bottom Perforation @ 8816'. 20:30 21:15 0.75 CIRC CFLD AF Circ for 45 min at 8836' CTM. Moving Coil while circulating. Circulate 90 bbls @ 2 bpm. www.peloton.com Page 114 Report Printed: 8/4/2011 •perations Summary Report by J. Marathon Oil Well Name: KENAI BELUGA UNIT 12 -5 Qtr/Qtr, Block, Sec, Town, Range Field Name I License # State /Province Country Northing - 274,849.98', Easting - 2,3620,41.22' KENAI ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) I KB- Ground Distance (ft) Spud Date Rig Release Date 0.00 66.00 87.001 21.00 4/20/2007 5/9/2007 Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Com 21:15 22:00 0.75 RUNPUL COIL AF POOH with CT @ 100 ft/min rate, pumping at 2 bpm, pump pressure @ 2300 psi, Wellhead pressure @ 84 psi. Increase CT to 180 ft/min rate, pumping at 2 bpm, pump pressure @ 2300 psi, Wellhead pressure @ 106 psi. CT out of hole and Closed Valves on Tree @ 22:00 hrs. 22:00 22:45 0.75 RURD COIL AF RD CTU injector head and secure well. Close out Permit. Sign out on sign out sheet. SDFN. Report Date: 6/27/2007 Job Category: COMPLETION 24 Hr Summary Safety meeting. PT well test and frac lines. Excape Frac module 2 -11. Clean well out and jet in with coil tubing. Turn well over to well testers. Ops Trouble Start Time End Time Dur (hr) Ops Code Activity Code Status Code Com 06:00 07:50 1.83 SAFETY MTG AF Held pre frac safety meeting. Discussed slips trips and falls, high pressure frac ops, flowback, muster location, evac route, etc. 07:50 08:00 0.17 PUMP FRAC AF Pressure test frac lines to 9500 psi. Good Test. Gel up for frac job. 08:00 08:20 0.33 PUMP FRAC AF Open well SITP = 720 psig. Loaded hole with 76 bbl linear gel. Fired Mod 2 guns and perforated 8764' - 8774' RKB (Regular flapper). Shot at 3011 psi. Pumped into module 2 (Tyonek) w /BJ lighting 1800. Frac mod 2 with 22,672 Ibs 20/40 white & 3,240 lbs 12/20 flex = 25,912 lbs TOTAL. Ramped 2 -6 ppa. 08:20 09:23 1.05 PUMP FRAC AF Module 3- (Tyonek) regular flapper - ( 8451'- 8461'RKB) fired at 5001 psi. Frac mod 3 with 23,123 Ibs 20/40 white and 3,303 lbs 12/20 Flex = 26,426 Ibs TOTAL. Ramped 2 - 6 ppa. 09:23 09:49 0.43 PUMP FRAC AF Module 4 (Beluga)regular flapper- (8322' - 8332' RKB) fired at 6400 psi. Frac mod 4 with 10,521 lbs 20/40 white and 1503 Ibs 12/20 Flex = 12,024 Ibs TOTAL. Ramped 2 -10 ppa. 09 :49 10:39 0.83 PUMP FRAC AF Module 5 ( Beluga) regular flapper - (8277' - 8287' RKB) fired at 8300 psi. Frac mod 5 with 35,280 Ibs 20/40 White and 5,037 lbs Flex = 42,347 lbs TOTAL. Ramped 2 -10 ppa. 10:39 11:14 0.58 PUMP FRAC AF Module 6 (Beluga) regular flapper - (8132' - 8142' RKB) fired at 3200psi. NO FRAC. Module 7 (Beluga) regular flapper - (8084' - 8094' RKB) fired at 4500psi. NO FRAC. 11:14 11:29 0.25 PUMP FRAC AF Module 8 (Beluga) regular flapper - (8029' - 8039' RKB) fired at 5300psi. Frac mod 8 at 27,524 lbs 20/40 white & 3,032 lbs 12/20 Flex = 31,456 lbs TOTAL. Ramped 2 -8 ppa 11:29 12:09 0.67 PUMP FRAC AF Module 9 (Beluga) Reclosing flapper - (7977' - 7988 RKB) fired at 6013psi. Frac mod with 19,688 Ibs 20/40 white & 2,813 Ibs Flex = 22,500 lbs TOTAL. Ramped 2 -8 ppa. 12:09 12:49 0.67 PUMP FRAC AF Module 10 (Beluga) Reclosing flapper - (7928' - 7938' RKB) fired at 7100psi. Frac mod with 33,341 Ibs 20/40 white & 4,746 Ibs 12/20 Flex = 40,107 Ibs TOTAL. Ramped 2 -8 ppa. Attemped to ramp to 10 ppa but had to prematurely flush due to increasing treating pressure. 12:49 13:29 0.67 PUMP FRAC AF Module 11 (Beluga) Reclosing flapper - (7512' -7523' RKB) fired at 8250psi. Frac mod with 39,304 lbs 20/40 white and 5,611Ibs 12/20 flex = 46,429 lbs TOTAL. Ramped 2 -10 ppa. (Total load fluid - 2500 bbls) 13:29 16:47 3.30 RURD COIL AF Rig up coil tubing. PU BHA. Stab injector head. Break circ and shell test. 16:47 18:54 2.12 RUNPUL COIL AF Open well and RIH @ 70 fpm while circulating. 18:54 19:24 0.50 RUNPUL COIL AF Encountered first flapper (mod 11) only a slight bump @ 7538'. Cont to 7956' (mod 10) no ind of tag. No indication © mod 9, tagged and broke through @ 8055' (mod 8). No tag @ 8109' (Mod 7) & 8302' (mod 6) tagged & jarred through @ 8305'. Tag TD © 8850' 19:24 20:13 0.82 RUNPUL COIL AF Did not engage modules 4,3 or 2 flappers. Start bottoms up. Recover large amounts of frac sand. 20:13 20:39 0.43 RUNPUL COIL AF PU to 8745', RIH to find bottom flapper © 8790' - No flapper. 20:39 23:27 2.80 RUNPUL COIL AF Start cool down on N2 pump. RIH @ 20 FPM start N2 @ CT depth 8266'. Circ at 1.5 BPM/ 475 SCFM N2 moving large voulme of sand. Run back to PBTD 6% @ 1.5 BPM/ N2 750 SCFM. 23:27 23:54 0.45 RUNPUL COIL AF Continue working CT from PBTD to top Perf @ 7500'. 23:54 01:10 1.27 RUNPUL COIL AF Reduced N2 to 500 SCFM jetting from bottom. www.peloton.com Page 2/4 Report Printed: 8/4/2011 liA.1 . Sperations Summary Report by J• Marathon Oil Well Name: KENAI BELUGA UNIT 12 -5 Qtr /Qtr, Block, Sec, Town, Range Field Name License # State /Province Country Northing - 274,849.98', Easting - 2,3620,41.22' KENAI ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) I KB -Ground Distance (ft) Spud Date Rig Release Date 0.00 66.00 87.001 21.00 4/20/2007 5/9/2007 Ops Trouble Start Time ' End Time Our (hr) Ops Code Activity Code Status Code Com 01:10 01:34 0.40 RUNPUL COIL AF PU to 7250' Jetted @ 500 SCFM for 25 mins. 01:34 02:09 0.58 RUNPUL COIL AF Stopped N2, let well flow @ 286 psi WH rec sand. Well flowing to surface @ 227 PSIG WH. Total N2 puped = 277,000 SCF. 02:09 02:59 0.83 RUNPUL COIL AF POOH w /CT 02:59 05:39 2.67 AF Rig back CT. Turned well over to well testers. Continue unloading well, by- passing test seperator. WHP = 150 - 300 psi / WHT = 45 degrees / 200 -400 bwpd Report Date: 6/28/2007 Job Category: COMPLETION 24 Hr Summary Tested well and placed in sales. Well cleaning up and current rate is 2.265 mmscfd @ 355 psi with 43 bwpd. Ops Trouble Start Time End Time Dur(hr) . Ops Code Activity Code Status Code - Com 06:00 08:00 2.00 FLOW TEST AF Cont to flow well to tank 08:00 16:30 8.50 FLOW TEST AF Flowing well through test equip. Int rate 1.137 mmscfd @ 176psi with 200 bwpd. 16:30 06:00 13.50 FLOW TEST AF Placed well to low pressure sales. Int rate 1.774 mmscfd @ 260 psi with 100 bwpd. 05:00 rate 2.265 mmscfd @ 355 psi with 43 bwpd. Report Date: 6/29/2007 Job Category: COMPLETION 24 Hr Summary Turned well over to production at 10:00 to all equipment mobilization to KBU 34 -6. Rate of 2.6 mmscfd @ 360 psi with 50 pwpd. Final Report. ps Trouble . StartTlme - End Time : Our (hr) Ops Code Activity Code - Status ' Code - - - Com 06:00 10:00 4.00 FLOW TEST AF Cont to test well and turned over to production to allow test equip mobilization to KBU 34 -6. Int rates to production were 2.6 mmscfd @ 360psi with 50 bwpd. Well continuing to clean up. Final Report. Report Date: 8/15/2007 Job Category: COMPLETION 24 Hr Summary Break flappers on Modules #7, 4, 3, and 2. POOH. Run PLT survey. Tagged TD 8809 "" KB. - Ops ` Trouble .Star(Tkne • End Time - Dur {hr) Ops Code , - ActivityCode Status ., Code . Com 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM and obtain Safe Work permit. Discuss overhead Toads, man lift safety. " "Don't work under the man lift" ". 08:30 09:00 0.50 RURD ELEC AF PU 1 "" swage, 2- 1- 11/16 "" weight bars, 2 -1/4 "" fluted centralizer, spange jars. PU lubricator. 09:00 09:20 0.33 RURD ELEC AF ' PTest lubricator to 1000 psi. Test good. 09:20 10:02 0.70 RUNPUL ELEC AF ' RIH with 1 "" swage, and 2 -1/4 "" fluted centralizer. (398 psi on well. Well flowing 2.4 MMc 10:02 10:04 0.03 RUNPUL ELEC AF Sat down on module #7 flapper at 8109'. 10:04 10:09 0.08 RUNPUL ELEC AF Broke thru #7. Proceed down hoel 10:09 10:10 0.02 RUNPUL ELEC AF Sat down on module #4 flapper at 8347'. 10:10 10:12 0.03 RUNPUL ELEC AF Broke thru #4. Proceed down hole. 10:12 10:13 0.02 RUNPUL ELEC AF Sat down @ module #3 flapper at 8475'. 10:13 10:16 0.05 RUNPUL ELEC AF Broke thru #3. proceed down hole. 10:16 10:18 0.03 RUNPUL ELEC AF Sat down @ mocule 2 flapper at 8790 " ". 10:18 10:19 0.02 RUNPUL ELEC AF Broke thru #2. Proceed down hole. 10:19 11:10 0.85 RUNPUL ELEC AF Tagged TD @ 8809.. Moddule #1 perfs 8806'- 8816'. POOH. 11:10 11:20 0.17 RURD ELEC AF OOH. PU PLT string. QTS pressure test. test good, 11:20 11:40 0.33 RURD ELEC AF Open well to RIH. (406 psi on well) 11:40 11:55 0.25 RURD ELEC AF RIH. Spinner stopped. past wellhead. POOH. Spinner full of grease. 11:55 12:10 0.25 RURD ELEC AF RIH. Spinner stopped. past wellhead. POOH. Spinner full of grease. 12:10 12:25 0.25 RUNPUL ELEC AF PU 2.812 GR/junk basket and make two passes thru wellhead. 12:25 14:02 1.62 RUNPUL ELEC AF MU PLT string and RIH. (458 PSI on well) Run 90 fpm down pass. Good spinner above Module #8. Loossin spinner signal at Module #3 and below. 14:02 14:20 0.30 RUNPUL ELEC AF End 90 fpm down pass. PU 90 fpm up pass ( 8790') 14:20 14:25 0.08 RUNPUL ELEC AF End 90 fpm down pass (7300'). Start 60 fpm down pass. 14:25 15:30 1.08 RUNPUL ELEC AF End 60 fpm down pass (8790'). Start 60 fpm up pass, 15:30 16:00 0.50 RUNPUL ELEC AF End 60 fpm up pass (7300'). Start 30 fpm down pass. Having trouble with spinner. Loosing signal above Module #8, which has been the best interval thus far. Decide to run 120 fpm to get better spinner action. www.peloton.com Page 3/4 Report Printed: 8/4/2011 erations Summary Report by JD /l'��..� /, p rY p Y Marathon Oil Well Name: KENAI BELUGA UNIT 12 -5 Qtr /Qtr, Block, Sec, Town, Range Field Name License # State /Province Country Northing - 274,849.98', Easting - 2,3620,41.22' KENAI ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB -Ground Distance (ft) Spud Date Rig Release Date 0.00 66.00 87.00 21.00 4/20/2007 5/9/2007 Ops Trouble Start Time _ End Time Dur (hr) Ops Code Activity Code Status Code Com 16:00 16:15 0.25 RUNPUL ELEC AF Pull up to 7300' start 120 fpm down pass. 16:15 16:22 0.12 RUNPUL ELEC AF End 120 fpm down pass (8500'). Start 120 fpm up pass. No spinner signal below Module #3. Had problems getting stuck in Modules #1 and 2 on previous run. Elect not to go down below 8500'. 16:22 17:00 0.63 RUNPUL ELEC AF End 120 fpm up pass(7300'). POOH. 17:00 17:10 0.17 RURD ELEC AF OOH. Rig down. Move to KBU 34 -6. www.peloton.com Page 4/4 Report Printed: 8/4/2011 ~ ~ ~ ~ Q ~ ~ SARAH PAUN, GOVERNOR ~~ ~~ ~`~ t7[~,7 333 W. 7thAVENUE, SUITE 100 CO1~TS~RQA7`IO1~T CO1~II~II5SI011T ANCHORAGE, ALASKA 99501-35 m PHONE (907) 279-1433 FAX (907) 276-7542 Willazd J. Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C Street Ste 800 Anchorage, AK 99503 39 Re: Kenai Gas Field, Beluga/Upper Tyonek Pool KBU 12-5 Marathon Oil Company Permit No: 207-042 Surface Location: 27' FSL, 1,060' FEL, Sec. 6, T4N, R11 W, S.M. Bottomhole Location: 2,791' FSL, 873' FWL, Sec. 5, T4N, R11 W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling opera.tions 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. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, conta t the Commission's petroleum field inspector at (907) 659-3607 (pager). ~ DATED this~day of April, 2007 Chairman cc: Deparhnent of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA ALA:~OIL AND GAS CONSERVATION COM ,~ION PERMIT TO DRILL 20 AAC 25.005 ~~ ~~~'~r~~d~ 5~a ~~ ~vt.'~:=~ ~ ~ 2007 ~~~.a.a: , .: ' ~ ~;~ ~:~ #~as Cons. Commission 1 a. Type of Work: Drill Q Redrill ~ Re-entry ~ 1 b. Currenf Well Class: Explorafory ~ Stratigraphic Test ~ Service ~ Multiple Zone Q Development Oil ~ Development Gas Q Single Zone ~ 1c. Specify if well is proposed for: +t~C Dr3~g Coalbed Methane ~ Gas Hydrates ~ Shale Gas ^ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket Q Single Well ~ Bond No. 5194234 11, Well Name and Number: KBU 12-5 3. Address: 3201 C. Street, Suite 800, Anchorage, AK 99503 6. Proposed Depth: MD: 8,990 ND: ,837 12, Field/Pool(s): Kenai Gas Field 4a. Location of Well (Governmental Section): SurFace: 27' FSL, 1,060' FEL, Sec. 6, T4N, R11W, S.M. 7. Property Designation: / A-028142 ~~/~L `~ Beluga / Upper Tyonek Pool Top of Productive Horizon: 2,791' FSL, 873' FWL, Sec. 5, T4N, R11 W, S.M. 8. Land Use Permit: 13. Approximate Spud Date: A ril 9, 2007 Total Depth: 2,791' FSL, 873' FWL, Sec. 5, T4N, R11W, S.M. 9. Acres in Property: 2,560 14. Distance to Nearest Property: 2,715 ft 4b. Location of Well (State Base Plane Coordinates): Surface: x- 274,849.98 y- 2,362,041.22 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 87 feet 15. Distance to Nearest Well Within Pool: 1,575 ft. to KBU 42-6 16. Deviated wells: Kickoff depth: 400 feet Maximum Hole Angle: 45.16 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 4,320 Surface: 2,475 18. Casing Program: Specifications To p - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD ND MD TVD (including stage data) Driven 20" 133 K-55 PE 106' 0' 0' 127' 127' 16" 13 3/8" 68 L-80 BTC 1,929' 0' 0' 1,950' 1,786' 607 sacks 12 1/4" 9 5/8" 40 L-80 BTC 6,540' 0' 0' 6,561' S,412' 387 sacks 8 1/2" 3 1/2" 9.3 L-80 EUE 8,969' 0' 0' 8,990' 7,837' 1,125 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) 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 ND ConductodSUuctural Surface Intermediate Production liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee ~ 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: 22. I hereby certify that the foregoing is true and correct. Printed Name Willard J. Tank Signature ~ Date Contact Title Advanced Senior Drilling Engineer Phone 713-296-3273 Date March 21, 2007 Commission Use Only Permit to Drill Number: ~Q ~ a API Number: 50- f~3•~Q,S'6 ~ QQ-0O Permit Ap ov Date: • . See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed me~hane, gas hydrates, or gas contained in 1shales: Other: Samples req'd: Yes'U No^ Mud log req'd: YeslJl No~ HZS measures: Yes^ No~] Directional svy req'd: Yes~j No^ ~~~~ QS~ ME1~\ M~9~~~ j~S`~ ~ APPROVED BY THE COMMISSION DATE: "S'~O~ , COMMISSIONER Form 10-401 Revised 12/2005 Submit in Duplicate ~ ~ I ~ ~ ~ Y ~ ~ • M Marathon MARATHON Oil Company March 2~, 2007 ~ Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 ~~~~~ i/ ~D MAR ~ 2 20Q7 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7t" Ave, Suite 100 Anchorage, AK 99501 ~~asi~a ~iE ~ Gas Cnns, CornrnissiOD Anchnrage „ ; Reference: Drilling Permit Application Field: Kenai Gas Field Well: KBU 12-5 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 well in the Beluga / Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling pool. If you require further information, I can be reached at 713-296-3273 or by e-mail at wjtank@marathonoil.com. Sincerely, ~y.c~,~ ~'~=~,~,1~~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures KBU 12-5 Drilling Program C~ r Marathon Oil Company Alaska / ` MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 12-5 Originator: Will Tank ~ Reviewed by: Pete Berga March 21, 2007 Date Date Brian Roy Date 3/21/2007 CONFIDENTIAL MATERIAL Page 1 of 18 KBU 12-5 ~ ~ Marathon Oil Company Dnlling Program Alaska TABLE OF CONTENTS 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 Bit Summary .................................................................................................................................................. 17 4.20 Hydraulics Summary ..................................................................................................................................... 18 4.21 Formation Integrity Test Procedure .............................................................................................................. 18 3/21/2007 CONFIDENTIAL MATERIAL Page 2 of 18 KBU 12-5 ~ Drilling Program ~ Attachments Marathon Oil Company Alaska 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 endors Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Welihead 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 ic Structure Ma s Geolo ic 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 Oocument Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 3/21/2007 CONFIDENTIAL MATERIAL Page 3 of 18 KBU 12-5 ~ Drilling Program ~~ Marathon Oil Company Alaska 1. Emerqencv Response information 1.1 Directions to Location Method Directions Air Latitude - 60°27'34.528"N Longitude - 151 °14'50.351 "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 approximately 5 miles, just past the Kenai Gas Field office at Pad 34-31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14-6. Go through pad and continue East 0.5 mile to pad 41-7. 1.2 Riq 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 Altemative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOGCERT 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: 3~2~/2007 CONFIDENTIAL MATERIAL Page 4 of 18 KBU 12-5 ~ Drilling Program ~ Marathon Oil Company Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-2963273 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 Jennifer Enos Geologist 713-296-3319 713-408-3583 Moksh Dani Reservoir Engineer 713-296-3140 832-692-4700 Craig Meese Completion Engineer 713-296-2214 713-725-7114 Ken Walsh Production Engineer 907-283-1311 907-3943060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Mike Feketi Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Rowland Lawson Drilling Supervisor 907-283-1312 907-394-0953 907-283-1313 2. Requlatorv Aqencv Contacts 2.1.1. Internal Requlatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Re ulatory Compliance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Requlatorv Contact Contact Title Office Phone Facsimile 24 hr Emer enc Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Requlatorv Comuliance Regulation Requirement 20 AAC 25.035 e 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 e 10 F Requirement for a 24 hour notice to AOGCC prior to BOP test. Comments 3/21/2007 CONFIDENTIAL MATERIAL Page 5 of 18 KBU 12-5 ~ Drilling Program 4. Drillinq Proqram Summarv 4.1 General Well Data ~ Marathon Oil Company Alaska Well Name KBU 12-5 Lease / License Surface Location 27' FSL, 1,060' FEL, Sec. 6, T4N, R11W, S.M. WBS Code DD.07.14828.CAP.DRL Slot/Pad KGF Pad 41-7 Field Kenai Gas Field Spud Date 04/9/07 (est.) KB (above MSL) 88' County/Province Kenai Peninsula API No. GL (above MSL) 67' State / Country Alaska Permit No. Perrn. Datum KB Totai MD 8,990' Well Class Development Water Depth N/A Total TVD 7,837' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: Comments: 4.2 Workinp Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 100% P•O. Box 196168 907-561-5311 907-565-3076 Anchora e, AK 99519-6168 4.3 Geolopic Propram Summarv Surface Location Coordinates From LeaselBiock Lines 27' FSL, 1,060' FEL, Sec. 6, T4N, R11W, S.M. Latitude 60° 27' 34.528" N Longitude 151 ° 14' S0.351" W UTM North (1~ 2,362,041.22' UTM East (x) 274,849.98' Tolerance Formation MD - RKB (ft) ND - RKB (ft) Pore Pressure (psi) Pore Pressure ( g) Lithol y Possible Fluid Content Sterling A-8 (Not a Prod Target) 4,578 3,647 0.8 - 6.5 Sandstone GasNVater Beluga (Not a Prod Target) 5,862 4,742 1.5 - 7.3 Sandstone Gas Middle Beluga (Primary Target) 6,584 5,435 5.8 - 8.6 Sandstone Gas Lower Beluga (Primary Target) 7,290 6,137 5.8 - 10.6 Sandstone Gas Tyonek (Secondary Target) 8,460 7,307 5.8 - 10.6 Sandstone Gas 3/21/2007 CONFIDENTIAL MATERIAL Page 6 of 18 KBU 12-5 ~ Driiling Program ~ Marathon Oil Company Alaska Depth (KB) Horizontal Displacement (ft) MD ND +N/-S +E/_W Tolerance Target (ft (ft) Location (Y) (X) (ft) Lower Beluga 7,290 6,137 2,791' FSL, 873' FWL, Sec. 5, T4N, R11W, S.M. 2,764 1,933 Circle 200' radius TD 8,990 7,837 2,791' FSL, 873' FWL, Sec. 5, T4N, R11W, S.M. 2,764 1,933 Circle 200' radius 4.4 Summarv of Potential Drillinq Hazards Hazard Event De~ ~ B Discussion Precautions p Lost Circulation in Low Pressure Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or Bl.M 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 +/- 4,578' MD (3,647' TVD) to total depth of the well. These sands will run from highly depleted to slightly above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summarv Interval LWD Electric Logs Mud logs Surface 0' -1,950' MD None None None Intermediate 1,950' - 6,561' MD None None Basic with GCA, shale density, temperature in and out, sample colleetion (10' samples). Production 6,561' - 8,990' MD None Reeves Quad Combo, MFT. Pull GR- Neutron to surface. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 3/21/2007 CONFIDENTIAL MATERIAL Page 7 of 18 KBU 12-5 Drilling Program ~ ~ Marathon Oil Company Alaska 4.6 Drillin Pro ram Summa 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 16" hole to +/- 1,950' set 13-3/8" casing. 1. Drill a 16" hole to 1,950' MD (1,786' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab-in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2,500 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 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 12-1/4" hole to +/- 6,561' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 15 ppg. 3. Drill 12 1/4" directional hole to 6,561' MD (5,412' ND) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,500 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/2,500 psi. 8. Set wear bushing. Test casing to 1,500 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. 3/21/2007 CONFIDENTIAL MATERIAL Page 8 of 18 KBU 12-5 ~ ~ Marathon Oil Company Drilling Program Alaska Production: Drill 8 1/2" hole to +/- 8,990' set 3-1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW 13 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 8,990' MD (7,837' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. Best Practices: 1 Comments: 3/21/2007 CONFIDENTIAL MATERIAL Page 9 of 18 ~ KBU 12-5 Drilling Program C~ Marathon Oil Company Alaska 4.7 Casinq Proqram Summarv MD (ft) Connection A PI Ratings Casing Size (in) op ottom Weight (Ibs/ft) ID (in) Drift (in) rade ype O. D. (in) Makeup Torque (ft-Ibs) Hole Size (in) ~ ~~ m g Q_ ~6 a U o~, c °- ~ v 133/8 0 1,950 68 12.415 12.259 L-80 BTC 14.375 N/A" 16 5,020 2,260 1,545 9 5/8 0 6,561 40 8.835 8.679 L-80 BTC 10.625 N/A " 12 1/4 5,750 3,090 979 31/2 0 8,990 9.3 2.992 2.867 L-80 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on ail equipment to the pin end and not make up to box below, due to rig height restrictions. 2*- Make up buttress connection to proper mark, not to a torque value. Comments: 4,8 Casinp Desiqn Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface a o Size Weight ND When Set Grad Press Pressure ~ ~ c (in) (Ib/ft) Grade (ft) (Ib/gai) (IWgal} (Ibigal) (psi) m U ~ 13 3/8 68 J-55 1,786 9.4 15.0 8.4 0 3.09 2.60 3.91 9 5/8 40 L-80 5,412 9.5 13.0 1.5 2,475 1.85 1.16 2.57 31/2 9.3 L-80 7,837 10.6 15.0 10.6 2,475 1.17 2.44 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size ND MAWP " MASP ** Mud/Gas (~n) (ft) (Psi) (psi) Percentage 13 3/8 1,786 3,412 0 30/70 9 5/8 5,412 3,997 2,475 30/70 3 1/2 7,837 6,664 2,475 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 psi/ft 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. 3/21/2007 CONFIDENTIAL MATERIAL Page 10 of 18 KBU 12-5 Drilling Program • . Marathon Oil Company Alaska Surface casing: 13 3/8" (1,950' MD. 1.786' TVD) MASPf~e~ _((Fracture gradient at shoe) x.052 x TVDsnoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac =(15.0 ppg x.052 x 1,786') -(0.1 psi/ft x 1,786') MASPfrac = 1,393 pSi - 179 psi MASPfrac = 1,214 psi. MASPbnp = BHPoPe„ noie cd - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbnp =(1.50 ppg x.052 x 5,412') -(0.3 x 9.5 ppg x.052 x 5,412') -(0.7 x 0.1 psi/ft x 5,412') MASPbnp = 422 psi - 802 psi - 379 psi MASPbnP = 0 psi MASP = MASPbnP = 0 psi MAWP =(0.7 x Casing Burst) -(Mud Wt. - Backup Fluid Wt.) x.052 x ND MAWP =(0.7 x 5,020) -(9.4 - 8.3) x.052 x 1,786' MAWP = 3,514 psi -102 psi = 3,412 psi Intermediate casing: 9 5/8" (6.561' MD. 5.412' TVD) MASPr~a~ _((Fracture gradient at shoe) x.052 x TVDsnoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac =(13.0 ppg x.052 x 5,412') -(0.1 psl/ft x 5,412') MASPf~a~ = 3,659 psi - 541 psi MASPfrac = 3,118 psi. MASPbnP = BHPoPe„ noie ~a - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbnP =(10.6 ppg x.052 x 7,837') -(0.3 x 10.6 ppg x.052 x 7,837') -(0.7 x 0.1 psi/ft x 7,837') MASPbnP = 4,320 psi -1,296 psi - 549 psi MASPbnP = 2,475 psi MASP = MASPbnP = 2,475 psi MAWP =(0.7 x Casing Burst) -(Mud Wt. - Backup Fluid Wt.) x.052 x TVD MAWP =(0.7 x 5,750) -(9.5 - 9.4) x.052 x 5,412' MAWP = 4,025 psi - 28 psi = 3,997 psi Production casing: 3 1/2" (8.990' MD, 7.837' TVD) MASPf,a~ _((Fracture gradient at shoe) x.052 x TVDgnoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac =(15.0 ppg x.052 x 7,837') -(0.1 psl/ft x 7,837') MASPfrac = 6,113 pSi - 784 pSl MASPtrac = 5,329 psl. MASPbnP = BHPoPe~ noie ~a - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbnp =(10.6 ppg x.052 x 7,837') -(0.3 x 10.6 ppg x.052 x 7,837') -(0.7 x 0.1 psi/ft x 7,837') ~~~~ f~. ~~.-- MASPnr,P = 4,320 psi -1,296 psi - 549 psi ~ ~ , MASPbnP = 2,475 psi ~~ 3 JC, ~~p QS ~ ~,'~3a~j _'~~', a MASP = MASPbnP = 2,475 psi ~~~~ ~„~ 1-y MAWP =(0.7 x Casing Burst) -(Mud Wt. - Backup Fluid Wt.) x.052 x ND MAWP =(0.7 x 10,160) -(10.6 - 9.5) x.052 x 7,837' MAWP = 7,112 psi -448 psi = 6,664 psi 3/21/2007 CONFIDENTIAL MATERIAL Page 11 of 18 KBU 12-5 Drilling Program Best Practices: 1 Comments: ~ ~ 4.10 Casinq Test Pressure Calculations Marathon Oil Company Alaska Casing test pressure 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. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. ~ Best Practices: ~~~-~~ ~ ~~~~~~4 ~~~~ Comments: ~ ~~~ 4.11 Blowout Prevention Eauipment, Testinq and General Procedures BOP PROGR AM Casin g Test Test Casing Test Fluid Pressure Size MAWP ~SP press Density BOPS Low/High Casin9 (in) (PS~) (PS~) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 133/8 3,412 0 1,500 9.4 250/2,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/S" 5M pipe ram Intermediate 9 5/8 3,997 2,475 1,500 9.5 250/2,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 3 1/2 6,664 2,475 1,500 10.6 250/2,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testinq Function Regularly. 3/21/2007 CONFIDENTIAL MATERIAL Page 12 of 18 • KBU 12-5 Drilling Program 4.11.2. Pressure Testinq ~ Marathon Oil Company Alaska 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 Epuipment Summarv Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 13 5/8" x 9 5/8" Fluted Mandrel Tubing Head 13-5/8" 3M Studded Bottom X 13-5/8" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual U,AA,PSLI,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Proqram Summarv Buiid Tum Coordinates Sec. No. Description MD (ft) ND (ft) Rate (°l700') Rate (°/100') Dogleg (°l100') Inclination (deg) Azimuth (deg) +r1/-S (~) +E/_W ({~) VS (ft) 1 Tie On 0 0 0 0 0 0 34.968 0 0 0 2 KOP 400.00 400.00 0 0 0 0 34.968 0 0 0 3 Build up Section 3.00 0 3.00 34.968 4 End of Build 1,905.21 1,754.16 3.00 0 3.00 45.16 34.968 461.42 322.71 563.08 5 Hold Section 0 0 0 45.16 34.968 6 End of Hold 4,279.85 3,428.69 0 0 0 45.16 34.968 1,841.16 1,287.68 2,246.78 7 Drop Section -1.50 0 1.50 34.968 8 End of Drop 7,290.28 6,137.00 -1.50 0 1.50 0 34.968 2,764.01 1,933.11 3,372.93 9 TD 8,990.28 7,837.00 0 0 0 0 34.968 2,764.01 1,933.11 3,372.93 3/21/2007 CONFIDENTIAL MATERIAL Page 13 of 18 KBU 12-5 Drilling Program ~ CJ Marathon Oil Company Alaska a ~ooo ' 13 3/8" ~~ ~ ' 2000 c a~- p 3000 0 ~ N L4000 a a~ ~ v 5000 9 5/8" ~ ~ KBU 1 2-5 M. Be luga ~ ~ ~ ~6000 ' KBU 1 2-5 L. Bel uga~ - F- 7000 ,.3 12^ KBU12-5TD - -- -____ -2000 -1000 0 1000 2000 3000 4000 5000 6000 Vertical Section at 34.97° (2500 ~n) c ~ °o ~ + ~ 0 Z 0 ~ Comments: Vertical section calculated from a reference azimuth of 34.97° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KBU 43-7X 52.73 850 KBU 41-6 56.35 865 KU 43-6RD 118.81 1,610 KBU 33-6 123.80 1,067 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Survevinq Summarv Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot ~ther Survey Tool Remailcs Surface 0 - 1,950' X Intermediate 1,950'-6,561' X Production 6,561' - 8,990' X Best Practices: 1 Comments: 3/21/200~ CONFIDENTIAL MATERIAL Page 14 of 18 -1000 -0 1000 2000 3000 West(-)/East(+) (1500 ~n) KBU 12-5 ~ Drilling Program ~ Marathon Oil Company Alaska 4.15 Drillinq Fluid Proqram Summarv Interval -ND Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite 0 1,786 8.6 - 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Sodium Meta Bisulfate Flo-Vis, PolyPac Supreme UL, KCI, SafeCarb 1,786 5,412 9.0 - 9.5 6% Flo-Pro NT w/ Safecarb 10,40,250, Mix II, Barite, Caustic, Conqor 404, Sodium Meta Bisuifate, Lubetex Flo-Vis, PolyPac Supreme UL, KCI, SafeCarb, 5,412 7,837 9.4 -10.6 6% Flo-Pro NT w/ Safecarb Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, SteelLube, Lubetex Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re-used for the production hole after cleanup through the on-site centrifuge. Comments: 4.16 Drillinq Fluid Specifications Interval - TVD LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (sedqt) 1 min (Ib./100it~) PV (cP) YP (Ib/100 ft~) Fluid Loss (cc) PH Solids (°~) 0 1,786 8.6-9.4 60-100 N/A 25-35 NC-12 +/-9.5 <7.5 1,786 5,412 9.0 - 9.5 40,000 + 8- 12 7- 9 +/- 9.5 +/- 5 5,412 7,837 9.4 - 10.6 30,000 + 10 - 16 5- 8 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that wili remain above the top of cement on the 3'/z" production casing will be treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to control leakoff. 3/21/2007 CONFIDENTIAL MATERIAL Page 15 of 18 KBU 12-5 ~ Drilling Program ~~ Marathon Oil Company Alaska 4.17 Solids Control Eauipment ~ 0 d a~ ~ ~ d -~ ~. '~° N rn ~ ~ Vl = 41 ~ N . Y m ~ U ~ c c 0 ~0 a`~ N ~ N ~ ~ ~ Interval ~ ~ ~ ~ V v V N Comments 0- 8,990' MD X X X X Closed Loop System, Full Containment, Run shakers wifh finest screens possible Item Equipment Specifications (quantity, desi n 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 siop pit to more efficientiy puil 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: 3/21/2007 CONFIDENTIAL MATERIAL Page 16 of 18 KBU 12-5 ~ Drilling Program 4.18 Cement Proqram Summarv \ J Marathon Oil Company Alaska De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (~n) MD (~) TVD (~) Hole Size (~n) MD (~) TVD (~) Ann Vol To TOC (~3) With OH Excess ~ft~ Density LeacUTail (pP9) Open Hole Excess (%) Thickening Time (hrs) 20 100 100 Driven N/A 13 3/8 1,950 1,786 16 0 0 872 1,523 12.0 75 8 95/8 6,561 5,412 121/4 4,000 3,231 802 1,157 10.5 40 8 31/2 8,990 7,837 81/2 6,000 4,871 996 1,316 15.8 40 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty W~ ~ Strength (psi) (in) Slurry Cement Description (Iblgal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (°~) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 607 2.51 1,523 0 11.28 Fresh 812 0 196 818 9 5/8 Tail Class "G" 10.5 387 2.99 1,157 4,000 12.39 Fresh 24 0 145 1,441 3 1/2 Tail Class "G" 15.8 1,125 1.17 1,316 6,000 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 4.19 Bit Summarv Interval - MD Type Recommended Estimated From (ft) To (ft) Size (in) Manufacturer Modei No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (ft/hr) 0 1,950 16 Christensen MX-1 115 1- 4 80 - 350 1,950 6,561 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 6,561 8,990 8 1/2 Christensen HCM605 M323 Up to 25 Motor Best Practices: 1 Comments: See bit prognosis for additional information. If a second bit is necessary for the 12 %<" hole a MX-C3 (IADC 137) should be used to finish this section. Back up bits for the 8'/" hole section will consist of mill tooth and TCI tricone bits. 3/21/2007 CONFIDENTIAL MATERIAL Page 17 of 18 KBU 12-5 Drilling Program 4.20 Hvdraulics Summarv ~ ~ Marathon Oil Company Alaska Qty Make Model Liner ID (in) Stroke (in) Max Press @ 90% WP (psi) Displacement (a3 95°/a Vol. eff (gallstroke) Max Rate Q 95% Vol. eff (spmlgpm) 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 AAW ECD Size bit (ft) in) (gpm) (psi) fpm) (ppg) (ppg) (32"s) si Rema~lcs (Drill string cor-figuration) 0- 1,950 16 650+ 1,400 69 9•3 2- ~$ S Actual Data KBU 24-7X (@ 1,636' MD) 1 - 16 1,950 - 6,561 12 1/4 663 2,050 130 9•5 6- 13's Actual Data KBU 24-7X (@ 6,077' MD) 6,561 - 8,990 8 1/2 477 1,850 249 9•~ 5- 15's Actual Data KBU 24-7X (@ 8,176' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 16", 12 %4", and 8'/Z" holes were calculated using 5" drillpipe. 4.21 Formation Inteqritv 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 (LOl) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 3/21/2007 CONFIDENTIAL MATERIAL Page 18 of 18 ~ ~ Marathon Oil Well KBU 12-5 Diverter Flow line 21 1/4" 2M Diverter ~ 16" Automatic Knife Valve I I~ Diverter Spool -• ~ 16" Diverter Line ~ Marathon Oil Well KBU 12-5 BOP Stack Flow Nipple 13 5/8" 5M Annular _* Preventer 13 5/8" 5M Double ~ Ram Preventer ~i 2 1/16" 5M Check Valve 2 1/16" 5M Manually Operated Valves ~ ~~ ~~~ ~X~ ~~~~~~ ~X~ ~~~ Kill Lu-E_J-~LJLU-~WJ 13 5/8" 5M Cross / ~ 13 5/8" 5M x 13 5/8" 5M ~ Drilling Spool Pipe Ram Blind Ram Flow Line Choke ~ 3 1/8" 5M Manually Operated Valve ~ ~111IIII I~I ilI I 3 1/8" 5M Hydraulicaliy Operated Valve Bottom of mud cross must be 24-45" from ground level for Glacier 1 rig placement. ~ 13 5/8" 5M Tubing Head Flange ~ ~ Marathon Oil ~ Well KBU 12-5 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers x~ cx~ cx oo~ oo~ oo~ x x x x ~Q~~ °°~ ~Q~~ x ~ ~ 3" 5M Valves X 1 ~ 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke From BOP Stack ~ ~ Surface Use Pian for Kenai Beluga Unit, well KBU 12-5 Surtace location: 27' FSL, 1,060' FEL, Sec. 6, T4N, R11W, S.M. 1) Existing Roads Existing roads which will be used for access to KBU 12-5 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KBU 12-5. 3) Location of existing wells Well KBU 12-5 will be drilled on Kenai Gas Field (KGF) pad 41-7. A pad drawing is enclosed that shows existing wells and the proposed location of KBU 12-5. 4) Location of existing and/or proposed facilities The locations of existing production facilities in the KGF pad 41-7 are shown on the enclosed pad drawing. A flowline will be installed from the KBU 12-5 wellhead to an existing line heater and separator. 5) Location of Water Supply A water supply well exists on the pad that KBU 12-5 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. The recent pad expansion has already been completed and is sufficient. 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 Y~ 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. S& R wilt collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KBU 12-5 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KBU 12-5 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from Salamatof Native Association prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the Salamatof Native Association. 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 sfatements 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 0 7 Name and Title: Willard J. Tank, Advanced Senior Drilting Engineer Marathon Oil Company P.O. Box 3128 Houston, TX 77253 (713) 296-3273 WELL K. B. U. 12-5 ~ ASBUILT WELL LOCATION 8' DIA. WELL CE~LAR ASP ZONE 4 NAD27 N: 2362041.22 E: 274849.98 LAT: 60°27'34.528" N LONG: 151°14'50.351" W FEL = 1060' FSL = 27' ELEV = 66.2' (MSL) SECTION 6, TOWNSHIP 4N RANGE 11 W, SM AK EDGE OF PAD KENAI GAS FIELD PAD41-7 SECTION 6 K.B. U. 11-8Y 8' WELL CELLAR N:2362098.81 E: 275205.83 OO K.B.U.41-6 K.B.U.43-7X 8' DIA. WELL CELLAR 8' DIA. WELL CE~LAR N: 2362053.16 N:2362054.63 E:274996.71 E: 274916.45 K.B.U.33-6X K.B.U.42-6 8' DIA. WELL CELWR 8' DIA. WELL CELLAR N:2362053.94 N:2362054.15 I K.B.U.11-8X E: 275050.91 E: 27510524 8' DIA. WELL CELLAR N: 2362053.64 O O O I E:275155.87 1060' FEL CONCRETE VAULT Y I ~ w~ PIPE GUARD 1806.13 SECTION LINE ~ ~ _ _ - - - - - ^ - 27~ FSL METHONAL K.B.U. 24-6H 76' DlA. WELL SILO - - K.B.U.44-6 WELL SILO 16' DIA - ~ ~ ~ SKID N: 2361975.18 E:275073.31 . N:2361967.24 I O ~ D O O O E:2751091.17 O W Z K.B.U.33-6 K.B.U.42-7 K.B.U.32-7 J 16' DIA. WELL SILO 16' DIA. WELL SILO 16' DIA. WELL SILO Z N:2361974.75 N:2361975.39 N:2361972.17 I O E:274973.34 E:275022.43 E:275138.30 C°O ~ SECTION 7 I w K.T.U.32-7H ~ 16' DIA. WELL SILO N:2361929,50 CONTROL POINT 3 E: 275232.75 I 2" ALCAP N = 2361855.33 I E = 275081.95 ELEV. = 66.21 O I NOTES 1. BASIS OF COORDINATES IS U.S.C. & G.S. TRI STATION AUDRY IN A.S.P. ZONE 4. (NAD 27) AVERAGE CONVERGENCE OF POINTS SHOWN: 01°5'58". 2. AUDRY LOCATION: LAT: 60°30'50.559"N LO N G: 151 ° 16'37.445"W NORTHING = 2,382,045.42 EASTING = 269,866.75 / 1-iL~l~i i 1ON PR0.IECT M OIL COMPANY ARATHON • A[A9BA RB(~~i KENAI GAS FIELD PAD 41-7 WELL K.B.U. 12-5 ASBUILT SURFACE LOCATION DIAGRAM Consultin Grou ENGINEERING/MAPPINCa/SURVEVING/TESTING 9 P P.O.BOX488SOLDO7N0.AK.99669 IOCATION cLane Testing VOIEMAIL90SAMClANE~MCLANECG.CZBOM~S S6 T4N R11W SEWARD MERIDIAN, ALASKA CONCRETE O O VAULT p REVISION: DATE: 2l7/07 DRAWNBV: CRM scn~: r = sa PR0.IECT NO. 07300 BOOK NO. 6-21 SHEET ~ ~F '~ ~ • , : _ _ ~~~.,,,,,,, ----; ~~ NORTH ~ ~ "~ .~-~r ' ~1..=.. _ _ -- -~'s- - p~0°i~~ ._ _ _ ~ ~ ct~arei I ~ --__ . ,o ' ~t ~j .-. ,H,-~'?J'~~ .. ~," 2 25 ~' I . ~~~:~s WeY ~~ ~ i,_ ~ ~ ~' ~ . ('~ ~ ~ Pad 33-30 ~_ ~ ~~ I~ . ~•1_ ~ • I . ~ . ~PoPPY Lan'~ '+CARP Y~y ~ . ' ; '~ ~ ; . , "~< j ; ' ; ~ Privat~,~~ioad - r ' 23~~ ~ ~ _ ` i~ ~ 'I i_ . ~ 3T, ` i~, u ih , ~~ ; ~ • 1 I ' "' ._ _ f . '. ~ . ' ~. ' ~ Pad 43-32 ' ~~~'~ ~ ~ i ' ~/ ~ -~~~ ~~ ~ ~ ~ P e d 3 4 - 3 1 ~ ,~ ass weus_ _ _ _ . _ _ . ~ sn~Ps . , ~ " ~., r~. T,= . ~~ ~ o` ~ ~ KENA1 (iA3 FIELD ~ ~ : ~ ~ Graval ~ ~ . 5 4 i. ; ~-- ~ Pits I~ ' c ! 11 6 ~• ~~. -'--. .. ~I ~ . ~d~ 14-6 = -_.. -_-_-'. . p ,w ~~ ~ Pad~ 33-1u `~' ~ ~ . I~ f, ~; j '~ ~ ~s Wells . . _ . . . ..~ il •4. ,I ' -~ Pad 41-7 Pad 14-4 ~ I ~ , , , ' undfoQ I; ~ ~) ProjecY Location ? _ : '' s'"p `~ N •!~ ._ . 7 :' 8 ~ 9 . ~~;J , 1: ..+ o ~ ~ Privat~~ Road ~ i, ~ , o ~' I ' y .I . , ~ I:..i ' . . _ • ! ~ Pad A1-1d ~ t ~ ; ' ~ ~~FCIID ~ _ ~ r $ , . . I , .. ~.~ke "~, i4 ; : ~ ~~ ~ • ~ ~~`.~~ ~ ii COOK INLET t P~1~~4-18 - ' ~~,,- _ ~ ~! ~ _ . . . i ~ ~ Abandon~d ~' ' :. s s ,y~~~•- .• ,F _ •w ~ ~A c..w..° > f~ ` .~_ ~. _, - ~ ~ ~anai~ `~~~ ; j ~ ' ,~ ~ _`~. .. strlP ./ 2u • a ~ f - ^ • t~ --= 2~/ •; j~ ~ 2G ~ ~ '~ ~ K~~si Uait Boundary ~~` ,,~~~~ ' , '~ I . Kali(omky a~ ~ _ .r • •'~ ~I • ~ ' '~~-~-' - ={ 25' '~ ~ ~ - j-_ -..- - +~ts I , • . • I' 1 ..'.> i • . - ~ , , 4~~ I , • . ~ ?,`' ~ 3O 29 2~, R~~` ~• -: h G ~ ~ • ~ j .:,~ 4 ; ~~ ~ .~.~~ ~ . • . ~, ~ - - ~ -. _"r-1. _ _ ~ - . ~; . ~ -~; ~ + ~, . ~ ' - ' f A '`~d<~' "i.r' ~~:. • ' ReJledion s. 36 ~ 31 ,-° ~.. sh Lalce . ., 34 35 Kasllof Rfv~r ~~ , + w . - . ~4+ . ~~ ~ I ~ ~ .,poi.,~~ _ - ~ .. ~ r~.pgj~ ~~ ~ ~ ~ '~ ~, 61a .. , . ~ ~ ~ ' '----- -'t' ~----------~-_-__ ~- ~-~ `^-- r- . ' _ ~~.~ -------------- ~ ' /r " ~ - ' - - •~~ ~ . an ' ~ • ~,•~ ~ • ~, 6 , 5( . - . -y - a • t . ~ 2 i ~ ~ '~ , ~. ~- ~ ' ~n ~ ~' - • ' W~ ~ ~~~~ ~ ~ I m a'_ .. _ , S ~~ . ~ ._ ~c• , ~ Sourc• Map: US(i8. 1961 K~n~i~ Alask~ B-4, 1:83.360 SCALE 163360 1 ' G [ t t M4~ ~. S!~1_4 1__L-SJ_ I.'}1_l._,~_.: _'"_ "~ "L___' .' _ _"'_"'-_...3:..r- _-:>_:'...=_=:.?EI_.:'.:.._'_"__._ "'__"'"_' 1 lp(1/ p YWI lRCYI 900D 17000 ISOOD i110Q~ 71UOD ~EEi ~=i"=F~"~=i"- i- -! ..~ .F-i._ ._.1:-i ~ -._k-_-_i~ . .!-f_ "F.=3 }.=-i. _t=-1 _ _'.2--~-L_ ".i~=.~_: i'_ 'i:= -~-t y :, i I 1 i J S Nll(WEt[RS .:~~1-t-T~ :~ i "'~ .' _"_i_. . 1 ..--~_-._--r:_ i_.._ _ . _i_-:.--" --_] Marathon Oii Company Kenai Gas Field Area Map O nupsA~3F.1~rnAGpJ~ • ~ N 3 2 2 14.1 ~ U 2 3 p~ ~ N ~4-32 34-3t ~ 4 3 'L t~ 34 2 ~ 0 ~_g ~Q/ ~ KBU4'I-B P y -B ~ ~~ 5 ~ 9 5 9 21-8X ~ ~ 6 ~~ ~ 1 6 ~ K6U 22-6 ~ Ik s ~ KBU 12-5 5 5 ~i U_42-B F(TU 43-BXR G ^ % . ~ I~U 23X-~ 9 8 3 8 ? . . 5 ~~ 4 • 6 33-6 9 ~ i !~U ~ 'BX 43-6A ~ ,T 5 ; a 5 I 6 5 @• ~~ 6 6 6 24-6H 5 K 24AR 3 ~ ERD YmU 5 5 A 6 IQl 24-5 ~ U 24- ' 5 4 WJ S 24-5RD 2 1 '1 O b 3 5 ~P 6, 3. imU 8 a' ~ . ~ ~~ 24-6 3 .7 3 2 ~ m J I~U 1 P 3 ~_7 L T ~ l A ? A y 2 J ~ ~~ 2 , ' KU 2 41 A h ^ m K 1 I 7 y Y~U X ~QJ 5 4 ~i '1-7RD ~ '1~-9 3 6 0 ~ a V 3 K.~ 3 2 1 ~U 32-7H ~ 9 5 '~ 2-~ 5 6 3 9 4 ~ + 6 l 32 7 ~' ~ ~ 6 5 ~ 5 1~~ tl ~ 13-8 I~U ~ 0 33-7 ~ 5 3-12 B -~ e ~ 9 4 -7 ~ ~ 6 3-7 X S 6 9 Marathon Oil Company KBU 2A- '~ !QJ IQJI-1 4I-t8 J 7 9~ h e 9 ' ._ 3 ~ y ~ 3 ~ ~ 11-17 } ~ ~ J z ~O ~ A N A ~,~~„~ ~ "'F , Beluga/Tyonek PA ~ .;~~-;~Za9K".G?.qR`~,~E.~.'.. _ -. _ ~:._,:~-~:'~. ~ , ~ Kenai Gas Field, Alaska 0.25 mi GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ~ ~ ~ MARdTNQM ~RATHON Oil Company Loca6on: Cook Inlet, PJaska (Kenai Penninsula) Slot slot #KBU125 Field: Kenai Gas Field Well: KBUt25 ~...~.~.~„~„~~ aa~w~.~.K.arow.a«ncr+n rMSYs4m:NACPITMANaRV3bteNane,ID~w<50Op,USHet m...~..aa.ro...~w.~«weewi.n wn e+ <nn ro m.,~... i...e e~ ~.N Fa (F.diry. Paa ~1-T: a tsx Depma ne ~ Cn~tee .t.Sd~NYOOn3HrzaU! r ~~~~ ~uaN~s II~tTEQ Location InformaGon Fad Nams 6NA East USfl OitA Norlh USfl lstlWM LO YYtl! Pad41~7 T/(61Q070 238206,9.9]0 60'2T34.012'N 151'iGOB.)86YJ SM LxW N(1p ocsl E(II) L GM Eesl (USM1 Gritl Norih (U8fl) letlWES L Nda aMiKBU12-5 53.07 3~U.80 2]4849.880 7183M1320 e0°2T34.528"N 151'1<'50.351'W GlaciarYf (RT) le MuE Pm (Facilily - Patl It-)) 8]II sea kve~M M W I'vw (Faciiy- PaO <t-)) 011 GlaclerYl (RT) fo mean sea kvel 8111 ~file Data rvo ~n> ~xai N~~q o~.i e~n> ~ o~s(•noon) vs ~rt~ o.oo o.oo o.oo o.oo o.oo .. eoo.m o.ao o.oo o.oo o.m ~ nse.ie a~t~ 3re.n 3.ao ssa.oa 171te.~ 1841.18 1287.68 O.oo aq8.~e 8137.UO z761.b1 1933.11 150 Aan.9o ]831.0o ZI&.OI 1933.11 0.00 93]2.93 $ L Q ~ 0 Vertical Section (ft) s""„"`"°,~°°" Azimuth 34.97° wilh reference 0.00 N, 0.00 E from wellhead • MwRATHON . MARATHON Oil Company Location: Cook Inlet, PJaska (Kenai Penninsula) Slot: slot #KBU125 Field: Kenai Gas Field Well: KBU12-5 Easting (ft) 800 1000 1200 1400 1800 TD:7837.OOR ND,2764.01ft N,1933.17ft E KBU12-5 TD 22-Feb-07 nver Beluga - EOD : 8137.OOft ND. 2764.01ft N, 1933.17ft E KBU12-5 Lower Beluga 22-Feb-07 Casing Production : 7837.OOft ND, 2764.01R N, 1933.11R E n Casing Intertnedlate : 5412.OOR TVD, 2707.17ft N, 7893.31ft E ~ ~ W E BGGM (194SA b 3U08.0) Dip:13.39° FIeW:55932.8 nT Megnetlo NoM le 18.24 Ceprees Eael of True Nort~ (at 02133q~ To corteq aiNnu[~ Rom MagnNlo b hu< atlE 18.20 tlegrees Begin Drop : 3428.69R ND, 1841.16R N, 1287.68ft Yl00 2400~0 0 2800 2800 2400 2200 2000 1800 1800 Z 0 ~ 1400 ~ co ~ 1200 1000 3.375in Casing Surtace : 1785.74R ND, 487.45fl N, 340.9~ft E d of Build : 1754.'16ft ND, 461.42ft N, 322.71ft E OP : 400.OOft ND, O.OOft N, O.OOft E sbt #KBU12-5 ~~~ ~R~ ilVT~Q Targets .uPO rvoau ~.w.m mie~ro ~~ad. Well Profile Data De' nCOmma~d MO R liw ° K(° ND LocelN fl Loea~E 11 OL3 '/100R VS 11 Tie On 0.00 0.000 3~868 0.00 0.40 0.00 0.00 0.00 KOP 400.00 0.000 3~.868 400.00 0.00 0.00 0.00 0.00 EnA ol BuNE 190511 45.156 3~988 7759.18 461.02 3Y1.71 3.00 583.08 B~91n Dmp /3]B.BS 45.156 ]~968 3128.69 78d1.18 1287.68 0.00 ]246.78 iarget-~owerBeluaa-EOD ]I90.]8 O.WO 3~b88 8737.W 1761.01 1933.11 1.50 337I.83 TD &990.t8 0.000 3~.988 ]B3].00 2789.01 1933.11 000 33]3.83 800 600 400 200 0 enn • ~ MARATHON Planned Wellpath Report KBU12-5 Version 2 Page 1 of 4 ri~~ BAKER HYt~r1~lES INTEQ . Operator , MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore ' KBU12-5 Faciliry Pad 41-7 MARATHON s ~ Planned Wellpath Report KBU12-5 Version 2 Page 2 of 4 ri~~ BAKER N1~6MES INTEQ , , Operator .. ~ ~ MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 MD [feet] Inclination [°] Azimuth [°] TVD [feet Vert Sect [feet] North [feet] East [feet] Grid East [us survey feet] Grid North us survey feet] DLS [°/100ft] Build Rate [°/IOOftj Turn Rate [°/100ft] 0.00 0.000 34.968 0.00 0.00 0.00 0.00 274849.98 2362041.22 0.00 0.00 0.00 100.00 j' 0.000 0.000 100.00 0.00 0.00 0.00 274849.98 2362041.22 0.00 0.00 0.00 200.00~' 0.000 0.000 200.00 0.00 0.00 0.00 274849.98 2362041.22 0.00 0.00 0.00 300.00 j~ 0.000 0.000 300.00 0.00 0.00 0.00 274849.98 2362041.22 0.00 0.00 0.00 400.00 0.000 34.968 400.00 0.00 0.00 0.00 274849.98 2362041.22 U~~O 0.00 ~ 0.00 500.00 j' 3.000 34.968 499.95 2.62 2.14 1.50 274851.52 2362043.34 3.00 3.00 0.00 600.OOj' 6.000 34.968 599.63 10.46 8.57 6.00 274856.14 2362049.68 3.00 3.00 0.00 700.00 j~ 9.000 34.968 698.77 23.51 19.27 13.48 274863.82 2362060.23 3.00 3.00 0.00 800.00 j~ 12.000 34.968 797.08 41.74 34.20 23.92 274874.54 2362074.96 3.00 3.00 0.00 900.00~ 15.000 34.968 894.31 65.08 53.33 37.30 274888.28 2362093.83 3.00 3.00 0.00 1000.00~ 18.000 34.968 99018 93.48 76.60 53.57 274904.99 2362116.79 3.00 3.00 0.00 ll00.00 j~ 21.000 34.968 1084.43 126.85 103.95 72.70 274924.63 2362143.77 3.00 3.00 0.00 1200.00 j~ 24.000 34.968 1176.81 165.12 135.31 94.63 274947.15 2362174.70 3.00 3.00 0.00 1300.00 j~ 27.000 34.968 1267.06 20816 170.58 119.30 274972.49 2362209.50 3.00 3.00 0.00 1400.00 j' 30.000 34.968 1354.93 255.87 209.68 146.65 275000.56 2362248.08 3.00 3.00 0.00 1500.00~ 33.000 34.968 1440.18 308.12 252.49 176.59 275031.31 2362290.31 3.00 3.00 0.00 1600.00 fi 36.000 34.968 1522.59 364.75 298.90 209.05 275064.64 236233610 3.00 3.00 0.00 1700.00~' 39.000 34.968 1601.91 425.62 348.78 243.93 275100.46 236238530 3.00 3.00 0.00 1800.00~ 42.000 34968 1677.95 490.56 402.00 281.15 275138.68 2362437.80 3.00 3.00 0.00 1900.00~ 45.000 34.968 1750.47 55938 458.40 320.60 27517919 2362493.44 3.00 3.00 ^ 0.00 1905.21 45.156 34.968 1754.16 563.08 461.42 322.71 275181.36 2362496.43 3.00 3.00 0.00 2000.00 j' 45.156 34.968 1821.00 630.28 516.50 361.23 275220.91 2362550.76 0.00 0.00 0.00 2100.00 j' 45.156 34.968 1891.51 701.19 574.60 401.87 275262.64 2362608.08 0.00 0.00 0.00 2200.00 j~ 45.156 34.968 1962.03 772.09 632.70 442.50 275304.37 2362665.40 0.00 0.00 0.00 2300.OOj~ 45.1~~ ~~,~~,,~, ~~}32:55 842.99 690.81 483.14 ~ 275346.09 2362722.72 ';: 0 '' 0.00 0.00 2400.00 j~ 45.156 34.968 2103.07 913.90 74891 523.78 275387.82 2362780.04 0.00 0.00 0.00 2500.00 j~ 45156 34.968 2173.58 984.80 807.01 564.41 275429.55 2362837.36 0.00 0.00 0.00 2600.00 fi 45.156 34.968 2244.10 1055.70 865.12 605.05 275471.28 2362894.68 0.00 0.00 0.00 2700.00~ 45.156 34.968 2314.62 1126.61 923.22 645.69 275513.01 2362952.00 0.00 0.00 0.00 2800.00j' 45.156 34.968 2385.14 1197.51 981.32 686.32 275554.73 2363009.32 0.00 0.00 0.00 2900.00~' 45.156 34.968 2455.65 1268.41 1039.43 726.96 275596.46 2363066.65 0.00 0.00 0.00 3000.00 j~ 45.156 34.968 2526.17 1339.32 1097.53 767.59 275638.19 2363123.97 0.00 0.00 0.00 3100.00 fi 45156 34.968 2596.69 1410.22 1155.63 808.23 275679.92 2363181.29 0.00 0.00 0.00 3200.00 j~ 45.156 34.968 2667.21 1481.12 1213.74 848.87 275721.64 2363238.61 0.00 0.00 0.00 3300.00 j' 45.156 34.968 2737.72 1552.03 1271.84 889.50 275763.37 2363295.93 0.00 0.00 0.00 3400.00 j~ 45.156 34.968 2808.24 1622.93 1329.94 930.14 275805.10 2363353.25 0.00 0.00 0.00 3500.OOj' 45.156 34.968 2878.76 1693.83 1388.04 970.78 275846.83 2363410.57 0.00 0.00 0.00 3600.00~' 45.156 34.968 2949.28 1764.74 1446.15 1011.41 275888.56 2363467.89 0.00 0.00 0.00 3700.OOt 45.156 34.968 3019.79 1835.64 1504.25 1052.05 275930.28 2363525.21 0.00 0.00 0.00 ~ MARATHON u Planned Wellpath Report KBU12-5 Version 2 Page 3 of 4 ri~~ BAKER 1~11~6HES INTEQ . . Operator ,. ~ ~ MARATHON Oil Company Slot stot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North feet] East [feetJ Grid East us survey feet Grid North [us survey feet] DIS ~°/100ft] Build Rate [°/100ft] Turn Rate [°/100ft] 3900.00 j' 45.156 34.968 3160.83 1977.45 1620.46 1133.32 276013.74 2363639.85 0.00 0.00 0.00 4000.00 j' 45.156 34.968 3231.35 2048.35 1678.56 1173.96 276055.47 2363697.17 0.00 0.00 0.00 4100.00~ 45.156 34.968 3301.86 2119.26 1736.66 1214.60 276097.19 2363754.49 0.00 0.00 0.00 4200.00 j~ 45.156 34.968 3372.38 2190.16 1794.77 1255.23 276138.92 2363811.81 0.00 0.00 0.00 4279.85 45.156 34.968 3428.69 2246:78 1841.16 1287.68 276172;~ 4 2363857.58 ~ 0.00 0.00 0.00 4300.00~ 44.854 34.968 3442.93 2261.02 1852.84 1295.85 276180.63 2363869.10 ' 1 50 -1.50 0.00 4400.00~ 43.354 34.968 3514.74 2330.62 1909.87 1335.73 276221.59 2363925.37 1.50 -1.50 0.00 4500.00~' 41.854 34.968 3588.34 2398.31 1965.34 1374.53 276261.42 2363980.09 1.50 -1.50 0.00 4600.OOfi 40.354 34.968 3663.69 2464.05 2019.21 1412.21 276300.11 2364033.24 1.50 -1.50 0.00 4700.OOj' 38.854 34.968 3740.74 2527.80 2071.45 1448.74 276337.63 2364084.77 1.50 -1.50 0.00 4800.00 j~ 37354 34.968~ 3819.42 2589.50 2122.02 1484.11 276373.94 2364134.66 1.50 -1.50 0.00 4900.OOj~ 35.854 34.968 3899.70 2649.13 2170.88 1518.28 276409.03 2364182.86 1.50 -1.50 0.00 SOOO.OOj~ 34354 34.968 3981.51 2706.64 2218.00 1551.24 276442.88 2364229.35 1.50 -1.50 0.00 S 100.00 j' 32.854 34968 4064.79 2761.98 2263.36 1582.96 276475.45 2364274.09 1.50 -1.50 0.00 5200.00~ 31.354 34.968 4149.50 2815.12 2306.91 1613.42 276506.72 2364317.05 1.50 -1.50 0.00 5300.OOj' 29.854 34.968 4235.57 2866.03 2348.62 1642.59 276536.68 2364358.21 1.50 -1.50 0.00 5400.OOj' 28.354 34.968 4322.94 2914.67 2388.48 1670.47 276565.31 2364397.53 1.50 -1.50 0.00 SSOO.OOj~ 26.854 34.968 4411.55 2961.01 2426.45 1697.02 276592.58 2364434.99 1.50 -1.50 0.00 5600.OOj~ 25.354 34.968 4501.35 3005.01 2462.51 1722.24 276618.47 2364470.56 1.50 -1.50 0.00 5700.00 f 23.854 34.968 4592.27 3046.64 2496.63 1746.10 276642.97 2~64504.22 1.50 -1.50 0.00 5800.OOj~ 22354 34.968 4684.24 3085.88 2528.78 1768.59 276666.07 2364535.94 1.50 -1.50 0.00 5900.00~ 20.854 34.968 4777.22 3122.70 2558.95 1789.69 276687.74 2364565.71 1.50 -1.50 0.00 6000.OOfi 19.354 34.968 487112 3157.07 258712 180939 276707.96 2364593.49 1.50 -1.50 0.00 6100.00~ 17.854 34.968 4965.89 318897 2613.26 1827.68 276726.74 2364619.28 ~ 1.50 -1.50 0.00 __T 6200.00~ 16.354 34.968 5061.47 3218.38 2637.36 1844.53 276744.05 2364643.0 ~ ~~~; _" ~' -1.SU 0.00 6300.OOj~ 14.854 34.968 5157.78 3245.28 2659.40 1859.95 276759.88 2364664.80 1.50 -1.50 0.00 6400.OOj' 13.354 34.968 5254.76 3269.65 267937 187391 276774.22 2364684.50 1.50 -1.50 0.00 6500.OOj' 11.854 34.968 5352.35 3291.47 2697.25 1886.42 276787.06 2364702.14 1.50 -1.50 0.00 6600.00-~ 10.354 34.968 5450.47 3310.73 2713.04 1897.46 276798.39 2364717.71 1.50 -1.50 0.00 6700.00 j' 8.854 34.968 5549.07 3327.41 2726.71 1907.02 276808.21 2364731.20 '` 1.50 -1.50 0.00 6800.00~ 7.354 34.968 5648.07 3341.51 2738.26 1915.10 276816.51 2364742.60 1.50 -1.50 0.00 6900.00~ 5.854 34.968 5747.40 3353.01 2747.68 1921.69 276823.28 2364751.90 1.50 -1.50 0.00 7000.OOt 4.354 34.968 5847.00 3361.90 2754.97 1926.79 276828.51 2364759.09 1.50 -1.50 0.00 7100.00~ 2.854 34.968 5946.80 3368.19 2760.13 1930.39 276832.21 236476417 1.50 -1.50 0.00 7200.00 f 1.354 34.968 6046.73 3371.86 2763.13 ~ 1932.49 276834.37 2364767.14 1.50 -1.50 0.00 729028 0.000 34.968 6137.001 3372.93 2764.01 1933.11 276835.00 2364768.00 1.50 -1.50 0.00 7300.00 j' 0.000 0.000 6146.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 7400.00~' 0.000 0.000 6246.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 7500.001' 0.000 0.000 6346.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 ~ MARATHON ~~ Planned Wellpath Report KBU12-5 Version 2 Page 4 of 4 ri~~ BAKER I~IY6I~IES INTEQ , . Operator ,. ~ ~ MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 ELLPATH DATA (94 stations) -~ = inter olated/extra olated station MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East [feet] Grid East [us surve feet] Grid North [us survey feet] DLS [°/100ft] Buiid Rate [°/100ft] Turn Rate [°/100ft] 7700.00~ 0.000 0.000 6546.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 7800.00~' 0.000 0.000 6646.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 7900.00~' 0.000 0.000 6746.72 337293 2764A1 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8000.00-~ 0.000 0.000 6846.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8100.00 j~ 0.000 0.000 6946.72 3372.93 2764.01 1933.ll 276835.00 2364'~6~i~i~ OAO ~„'O.U4 0.00 8200.OOfi 0.000 0.000 7046.72 3372.93 2764A1 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8300.00 j~ 0.000 0.000 7146.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8400.00 j' 0.000 0.000 7246.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8500.00 j' 0.000 0.000 7346.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8600.00 j~ 0.000 O.Q00 7446.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8700.00 j' 0.000 0.000 7546.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8800.00 j~ 0.000 0.000 7646.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8900.00 j~ 0.000 0.000 7746.72 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 8990.28 0.000 34.968 7837.00 3372.93 2764.01 1933.11 276835.00 2364768.00 0.00 0.00 0.00 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [feet] [feet] [feet] [feetJ [feet] [feet] [feet] [feet] [feet] 13.375in Casing Surface 0.00 1950.00 1950.00 0.00 1785.74 0.00 0.00 487.45 340.91 9.625in Casing Intermediate 0.00 6560.85 6560.85 0.00 5412.00 0.00 0.00 2707.11 1893.31 3.Sin Casing Production 0.00 8990.28 8990.28 0.00 7837.00 0.00 0.00 2764.01 1933.11 MD TVD North East Grid East Grid North Latitude Longitude [feet] [feet] [feet] [feet] [us survey [us survey [°] [°] ~1) KBU12-5 Lower Beluga 22- 12-5 TD 22-Feb-07 933.11 I 276835.00 28 01.746N~ 151 14 11.794 SURVEY PROGRAM Ref Wellbore: KBU12-5 Ref Wellpath: KBU12-5 Version 2 Start NID [feet~ - End MD [feet) Positional Uncertainty Model ' Log Name/Comment . - ---~~ - Wellbore _. . -- - -__ 0.00 _ _ -__---- 8990.28 - --- _ _ - ----__- _ _ NaviTrak (Standard) _ ~~~ ~ KBU12-5 ~ MARATHON ~ Wellpath Design Summary Report Wellpath: KBU12-5 Version 2 Page 1 of 2 ri~~ BAKER 1~11~6M ES INTEQ , . Operator ,. ~ ~ MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 ~ ~ ~ ~ ~ Projection System ~ ~ ~ NAD27 / TM Alaska State Plane, Zone 4(5004), US feet Software System WellArchitectT"' 1.2 North Reference True User Michwilg Scale 0.999958 Report Generated 03/Ol/07 at 10:43:57 Wellbore last revised 02/23/07 Database/Source file WA Anchorage/KBU12-S.xml '• ~ ~ ~ Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location 53.07 3933.84 274849.98 2362041.22 60 27 34.528N 151 14 50351 W Facility Reference Pt 270916.01 2362063.97 60 27 34.012N 151 16 08.796W Field Reference Pt 270993.19 2361975.05 60 27 33.151N 151 16 07.223W ~ . ~, Calculation method Minimum curvature Glacier#1 (RT) to Facility Vertical Datum 87.00 feet Harizontal Reference Pt Slot Glacier#1 (RT) to mean sea level 87.00 feet Vertical Reference Pt Glacier#1 (RT) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt Glacier#1 (RT) Field Vertical Reference mean sea level MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East [feet] DLS [°/100ft] esign Comments 0.00 0.000 34.968 0.00 0.00 0.00 0.00 0.00 ie On 400.00 0.000 34.968 400.00 0.00 0.00 0.00 0.00 OP 1905.21 45.156 34.968 1754.16 563.08 461.42 322.71 3.00 nd of Build 4279.85 45.156 34.968 3428.69 2246.78 1841.16 1287.68 0.00 egin Drop 7290.28 0.000 34.968 6-,., .. 3372.93 1:50 arget - Lower Beluga - EOD 8990.28 0.000 34968 7837.00 3372.93 2764.01 1933.11 0.00 TD String/Diameter Start NID End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E!W [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] 13.375in Casing Surface 0.00 1950.00 1950.00 0.00 1785.74 0.00 0.00 487.45 340.91 9.625in Casing Intermediate 0.00 6560.85 6560.85 0.00 5412.00 0.00 0.00 2707.11 1893.31 3.Sin Casing Production 0.00 8990.28 8990.28 0.00 7837.00 0.00 0.00 2764.01 1933.11 • • MARATHON Wellpath Design Summary Report Wellpath: KBU12-5 Version 2 Page 2 of 2 ri~~ BAKER I~IV6I~IES INTEQ . . Operator ,. ~ ~ MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 TARGETS Name 1) KBU12-5 Lower Beluga 22- MD [feet] 7290.28 TVD North [feet] [feet] East Grid East Grid North [feet] (us survey feet] [us survey feet] Latitude [°] Longitude [°] Shape circle Feb-07 KBU12 5 TD 22 F 07 b 7837.00 2764.01 1933.11 276835.00 2364768.00 60 28 01.746N 151 14 11.794W circle - - e - SURVEY PROGRAM Ref Wellbore: KBU12-5 Ref Wellpath: KBU12-5 Version 2 Start MD [feet] End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8990.28 aviTrak (Standard) U12-5 ~ • ~ MARATHON MARATHON Oil Company Localion: Cook Inlet, Alaska (Kenai Penninsula) Slot: slol #KBU12-5 Field: Kenai Gas Field FaciliN~ Pad 41-7 Well: KBU12-5 WeOhore~ KB1112-5 ~~:~; ~~ ~ BAKER 11tIt~NE~i INTEQ w~wn, n ~. ze~.. saa. u r.~......e .~,.r.~.,me.,c.e..~ n NonnR.r.,.~~..r~,.~m, ~e~~.~~ ~a ~.,.o~_.e. i....r. ei r..~ s~ab r~,. w..yz. a2- _- __ _ ___ _ ~~..~:..i.~.imm~ai~.¢.ou~n_a.a~i.i>~.ar..~ u.pm.,~.~~~..~ _ _ __-- ~ _ " 1ti3oo> b '5 i0 !5 10 5 0 Z 0 ~ 5 ~ ~ ~ 0 s~w„~_~R Easting (ft) ~ ~ M MARATNON MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU12-5 Field: Kenai Gas Field Well: K8U12-5 r. •;~;';.1 ~ BAKER HUaHES INTEQ Z 0 ~ ~ ~ ~ ~ N~r~ z~rt Easting (ft) ~em ~ MARATHON ~ ~ MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slo~: slot #KBU12-5 Field: Kenai Gas Field Well: KBUi2-5 ~.o,,,.,..~....,,.~.P,.~. _ ~~ ~~ BAKER MtIQ~HE~'r INTEQ Z 0 ~ ~ ~ ~ x ga,,,~~~,_~,~ Easting (ft) 10 ~ ~ M MARATHOM Traveling Cylinder: Map North ". 9 _ i BAKER 1 Nt~6NES INTEQ ~ a. r~ uo• i . / j /~ ~• i /f , j /h~ ' ~~.~ ! %'/~ z~ ,~ ,. ` ~~~~` , ., ,, r, k :\ MARATHON Oil Company LocaUon: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU12-5 Field: Kenai Gas Field Well: KBU12-5 ~~t> ITM ~i~~F~ St~t~ Pi~n~ 2 Gbcb SuM ! 1 laze _4•~ i1~o ~~e~veLeGh]ee~p n~e~n rn~~n~eala~el~oMUaime{Fac~1:ry-Paaal->'Oleet Oapin~aininlee~ 2,~~ '-- ~. !ar ~.l (1 \ ~ 5~t , \ ~ ~~ '~;~J x~;~ ~, !~'/ ,. ~ ~ ..7~,. ~~ \~ ~i \' 100d ~ 0 00 ~~~ ,.~ ~• ` 10C ~ ,~ 800 Q~ \ \ \ eo• . \ ' `\k' ,~ Siot KE / .~ / l 800 1 i MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 1 of 24 ~ ri~~ BAKER NV6HES INTEQ ~ . ~. ~ ~ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 . ~~~ ~ Projection System ~. ~ NAD27 / TM Alaska State Plane, Zone 4(5004), US feet Software System WellArchitectTM 1.2 North Reference True User Michwilg Scale 0.999958 Report Generated 3/1/2007 at 10:36:48 AM Wellbore last revised 2/23/2007 Database/Source file WA Anchorage/KBU12-S.xml '~ ~ ~ ~ Local coordinates Grid coordinates Geographic coordinates NoMh [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [o] Slot Location 53.07 3933.84 274849.98 2362041.22 60 27 34.528N 151 14 50.351 W Facility Reference Pt 270916.01 2362063.97 60 27 34.012N 151 16 08.796W Field Reference Pt 270993.19 2361975.05 60 27 33.151N 151 16 07.223W ~ ~ Calculation method Minimum Curvature Glacieri#1 (RT) to Facility Vertical Datum 87.00 feet Horizontal Reference Pt Slot Glacier#1 (RT) to mean sea level 87.00 feet Vertical Reference Pt Glacier#1(RT) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt Glacier#1(RT) Field Vertical Reference mean sea level ~..U .. ._... I Ellipse Confidence Limit ~ 3.00 Std Dev Ellipse Start Depth 0.00 feet Surface Position Uncertainty included Declination ~ 19.24° East af 'i'N I Dip Anglc ~ 73.39° ~° ~ Magnetic Fi~ld Str~ngth ~~ i ~5433 nT ANTI-COLLISION RULE I Rule Name E-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 Rule Based On Ellipsoid Separation w/Surface Uncert Plane of Rule Closest Approach Threshold Value 0.00 feet Subtract Casing & Hole Size yes Apply Cone of Safety no ~ ~ Clearance Report Closest Approach MARATHON KBU12-5 Version 2 Page 2 of 24 EtATHON Oil Company Slot slot #KBU12-5 k Inlet, Alaska (Kenai Penninsula) Well KBU12-5 ai Gas Field Wellbore KBU12-5 41-7 ri~~ BAKER N116MES INTEQ ~.~.~„s~._.~~-:,.. ~ SURVEY PROGRAM Ref Wellbore: KBU12-5 Ref Wellpath: KBU12-5 Version 2 Start NID End NID Positional Uncertainty Model Log Name/Comment Wellbore feet [feet 0.00 8990.28 aviTrak (Standard) U12-5 OFFSET WELL CLEARANCE SUMMARY (20 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min GC Diverging Ref MD of Min GC Min GC ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min GC EII Sep Ell Sep Status [feet] [feet] [feet] EII Sep [feet] Dvrg from [feet] [feet] Pad 41- 7 Slot #KBU33-6X KBU33- 6X KBU33-6X MWD <0-8405> 1105.42 159.27 1105.42 1117.41 143.23 1117.41 PASS Pad 41- 7 Slot #KBU41-6 KBU41-6 KBU41-6 MWD <0-9733> 864.75 56.35 864.75 885.87 39.57 885.87 PASS Pad 41- Slot 7 #KBU42-6 ~U42-6 KBU42-6 MWD <0-8624> 1861.89 166.93 1861.89 1916.51 140.44 1916.51 PASS Pad 41- Slot KBU43- KBU43-7X MWD <0-8610> 849 65 52 73 849 65 853 30 37 74 30 853 PASS 7 #KBU43-7X 7X . . . . . . Pad 41- ~ slot #24-6 KTU24- KTiJ24-6H MWD <0-10960> 939 18 198 18 $0 939 94992 1$~ ,~~~ q49 92 PASS ~ 6H . . . ~; ,~ . Pad 41- slot #24-6 KTU24- KTU24-6H UNKN ~gg20-9010> 939 18 198 80 939 18 949 92 183 81 92 949 PASS 7 6H (Pilot) . . . . . . Pad 41- slot #24-6 KTU24- KTU24-6H MWD <8844-8940> 939.18 198.80 939.18 949.92 183.81 949.92 PASS 7 6H RD Pad 41- slot #KBUI l- KBU11- 7 8X 8X ~U11-8X MWD <0-7659> 0.00 306.15 0.00 0.00 293.04 0.00 PASS I Pad 41- slot #KBU33- KBU33-6 KBU33-6 GMS <0-7902>, MWD 1066 72 123 80 1066 72 1084 96 107 15 1084 96 PASS ~ 7 _ _ 6 .__----- - _ <7902-8110> . . . ~ . . . Pad 41- ' ~ .._..._ slot #KBU42- ~ .._..._.~_'__. --- - KBU42-7 _ _..._ __._.._ - ~ KBU42-7 I f „.. ___._ _ . _. _ ---_ _-- - ~ MWD <0-7570> i . . --- 551.82 L ---_ _ _. i 181 73 ~ ._ _ _ . ___ _ 551.82 I 78.69 ~ 167 53 . ..... _ .. 578.69 . _~..~...v I _ PASS ; _. ~ , Pad 4l- 7 slot #KDU 4 KDU4 __"_r.-_... KDU4 s~.e.<.<._.._. ,. ..._...._, . ,....'___.~._'__- GMS <0-5549> ____.~..r 0.00 _.~_.__~ 39439 r~~..._,~,........_ 0.00 ~.."__ 0.00 . _._,.__. 381.27 . ... ._ . ... . 0.00 . ,. PASS ' Pad 41- slot #KTLJ13- KU13-5 KU13-5 GMS <0-8120> 0 00 297 70 0 00 0 00 285.14 0.00 PASS 7 5 . . . . Pad 41- slot #KTIJ43- KTU43- 7 6X 6X KTU43-6X GMS <0-8370'> 0.00 _ 340.56 0.00 0.00 327.44 0.00 PASS Pad 41- slot #KTCJ43- KTU43- KTU43- MWD <'7'700-9470> 00 0 340 56 0 00 0 00 327 81 0.00 PASS 7 __.. 6X __..._. ...._ _-- 6X - --- 6XRD2 _ -- -- . . . . . -- _ _- --- Pad 41- ~ slot #KTU43- ~ KTiJ43- KTU43-6XRd -- - - -j MWD <7670-9464> ~ - 0.00 ~ ~ 340.56 j ' 0.00 i 0.00 ~ 327.44 i ' 0.00 i PASS 7 6X ~ _~ .~. ~ ~ _- __~_ 6X ~~. a. `_- __. . - ~ I . a~ . ~~ i m __~~ ~~a_ s_._.___ .~~ 6~ ~~._.,.., ~ _ _ Pad 41- slot #KU I1-8 KU11-8 , _ KUl l-8 ~ ,_, GMS <0-5350> -__ 0 00 ,.~ . ,. ... 526.39 0.00 0.00 513.27 . 0.00 PASS . 7 . -- I ~ Pad 41- slot #KU 43-6 KU43-6 KU43-6 GMS<0-4129>, 1609 73 118 81 1609 73 1614 76 94 08 1614 76 PASS 7 . . . . . . MSS<4174-5701> Pad 41- slot #KU 43-6 KU43-6 KU43-6Rd MWD <4250-5740> 1609 73 118 81 1609 73 1614 76 94 08 1614 76 PASS 7 . . . . . . Pad 41- slot #KU 43- KU 43- 7 6A 6A KU43-6A MSS <0-5300> 0.00 467.07 0.00 0.00 459.93 0.00 PASS Pad 41- I slot #KU 43-7 KU 43-7 KU 43-7 MSS <0-5707> 0.00 - 525.79 ~ r--- 0.00 0.00 512.68 0.00 I PASS MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 3 of 24 ,~.^ BAKER Nu6NEs INTEQ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 CLEARANCE DATA - Offset Wellbore: KBU33-6X Offset Wellpath: MWD <0-8405> Facility: Pad 41-7 Slot: Slot #KBU33-6X Well: KBU33-6X Threshold Value=0.00 feet -~ = interpolated/extrapolated station Ref MD Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Status ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl Ifeetl f°l ffeetl 0.00 0.00 0.00 0.00 0.00 4.60 16.52 200.66 85.29 201.39 188.28 1311 PASS 100.00 fi 100.00 0.00 0.00 95.34 99.94 16.55 200.67 85.29 201.36 188.23 13.12 PASS 200.00-~ 200.00 0.00 0.00 195.27 199.87 16.65 200.72 85.26 201.41 188.26 13.14 PASS 300.00 300.00 0.00 0.00 295.26 299.86 16.80 200.78 85.22 201.48 188.29 13.19 PASS 4Q~~~ ~~~~ 4};~Q 0.00 0.00 395.62 400.22 16.94 200.77 85.18 201.49 188.21 13.27 PA i SOO.OOf 499.95 2.14 I.50 494.39 498.99 16.88 200.88 85.77 199.93 186.38 13.55 PASS 600.00 f 599.63 8.57 6.00 593.59 598. l8 16.99 201.53 87.54 195.72 181.51 14.21 PASS 700.OOj~ 698.77 19.27 13.48 693A1 697.60 17.45 202.20 90.55 188.74 174.23 14.51 PASS 800.OOj- 797.08 34.20 23.92 790.44 795.03 17.52 203.05 95.32 17991 165.14 14.77 PASS 900,OOt 894.31 53.33 37.30 887.71 &92.29 ~„~~~;82 204.26 ~, ,- 102.~~ ;~,~,, .~ 170.71 155,6~ ~ : 15.04 PASS 1000.00-~ 990.18 76.60 53.57 983.59 988.16 1815 205.56 111.04 162.85 147.47 15.38 PASS 1100.OOf 1084.43 103.95 72.70 1077.82 108238 18.26 206.95 122.55 159.28 143.33 15.95 PASS 1105.42j- 1089.49 105.55 73.82 1083.44 1088.00 18.26 207.03 123.24 159.27 143.27 16.00 PASS 1117.41-~ 1100.65 10912 7632 1094.32 1098.88 18.26 207.20 124.77 159.33 143.23 16.11 PASS 1200.9~ „~;$I 135.31 94.63 ?~~2.55 11-77:10 18.73 208.09 ,- 135.7~ 7~ ~~; ~~ 162.67 145~.77 16.91 PA~~ 1300.OOj~ 1267.06 170.58 (19.30 1263.79 1268.33 19.90 208.90 149.26 17532 157.18 18.14 PASS 1400.OOt 1354.93 209.68 146.65 1352A2 1356.54 21.13 209.90 161.46 198.89 179.52 1937 PASS GC Clearance llistance Cutoff: Z00.00 feet WELLPATH COMPOSITION Offset Wellbore: KBU33-6X Offset Wellnath: MWD <0-8405> ~ Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8405.00 NaviTrak (Magconl) MWD<0-8405'> KBU33-6X OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU33-6X Offset Wellpath: MWD <0-8405> MD Reference: Nabors 129 (RKB) Offset TvD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 4 of 24 INTEQ HOLE & CASING SECTIONS Offset Wellbore: KBU41-6 Offset Wellpath: MWD <0-9733> t~rz~ String/Diameter Start NID [feet] End NID [feet] Interval [feet] Start TVD [feet) End TVD [feetJ Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 16in Open Hole 137.00 1862.00 1725.00 137.00 1647.11 8.89 40.40 210.00 54.79 12.25in Open Hole 1862.00 7220.00 5358.00 1647.11 5346.15 210.00 54.79 1373.19 123.75 8.Sin Open Hole 7220.00 9733.00 2513.00 5346.15 7837.11 1373.19 123.75 1436.36 127.90 20in Conductor 0.00 137.00 137.00 0.00 137.00 8.94 40.36 8.89 40.40 13.375in Casing Surface 0.00 1862.00 1862.00 0.00 1647.11 8.94 40.36 210.00 54.79 9.625in Casing Intermediate 0.00 7214.00 7214.00 0.00 5340.56 8.94 40.36 1372.52 123.72 3.Sin Liner 0.00 9733.00 9733.00 0.00 7837.11 8.94 40.36 1436.36 127.90 WELLPATH COMPOSITION Offset Wellbore: KBU41-6 Offset Wellpath: MWD <0-9733> ~ Start MD feet End NID [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 9733.00 NaviTrak (Nlagconl) MWD <0-9733> KBU41-6 ~ ri~~ BAKER Nu~NEs GC Clearance Distance Cutoff: 200.00 feet ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 5 of 24 INTEQ OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU41-6 Offset Wellpath: MWD <0-9733> NID Reference: Glacier #1 (RKB) (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ~ ri~~ BAKER M~16NES ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 6 of 24 INTEQ HOLE & CASING SECTIONS Offset Wellbore: KBU42-6 Offset Wellpath: MWD <0-8624> ~ I String/Diameter Start NID [feet] End NID [feet) Interval [feet] Start TVD (feet] End TVD [feet] Start N/S [feet] Start E/W [feet) End N/S [feet] End E/W [feet] 16in Open Hole 0.00 1525.00 1525.00 0.00 1434.27 10.83 155.44 138.34 16531 12.25in Open Hole 1525.00 6176.00 4651.00 1434.27 5366.95 138.34 16531 841.62 208.33 8.Sin Open Hole 6176.00 8624.00 2448.00 5366.95 7812.54 841.62 208.33 872.02 201.54 20in Conductor 0.00 139.00 139.00 0.00 139.00 10.83 155.44 10.87 155.35 13.375in Casing 0.00 1517.00 1517.00 0.00 1427.62 10.83 155.44 136.99 165.17 9.625in Casing 0.00 6172.00 6172.00 0.00 5362.96 10.83 155.44 841.54 208.34 3.Sin Liner 0.00 8624.00 8624.00 0.00 7812.54 10.83 155.44 872.02 201.54 ~ ri~~ BAKER HU6NES GC Clearance Distance Cutoff: 200.00 feet MARATHON ~ATHON Oil ~ '~ Inlet, Alaska ai Gas Field 41-7 ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 7 of 24 slot #KBU12-5 ri~~ BAKER I~IYGMES INTEQ WELLPATH COMPnSiTinN nff.cet Wellbnre: KRiI42-6 nffset Wellnath: MWD <0-R624> ~ Start NID feet] End NID feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8624.00 NaviTrak (Ma corrl) MWD <0-8624> KBU42-6 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU42-6 Offset Wetlpath: MWD <0-8624> MD Reference: Glacier 1(RKB) (RKB) Offset TVD c~ local coordinates use Reference Wellpath settings (See WELLPATH DATUM on nage 1 of this renort) MARATHON 'LEARANCE DATA - Offset Wellbore: KBU43-7X Offset Wel acility: Pad 41-7 Slot: Slot #KBU43-7X Well: KBU43-7X ~ = interpolated/extrapolated station .ef MD Ref Ref Ref Offset Offset Offset Offset [feet] TVD North East MD TVD North East ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 8 of 24 ri~~ BAKER NY6NES INTEQ :h: MWD <0-8610> Threshold Value=0.00 feet Horiz GC Clear Dist Ellipse ACR MASD ACR Bearing [feet] Sep [feet] Statu: f°1 ffeetl 0.00 0.00 0.00 0.00 0.00 0.00 14.71 146.48 84.27 147.22 134.11 13.11 PASS 100.00t 100.00 0.00 0.00 101.61 101.60 15.21 145.87 84.05 146.67 133.55 13.12 PASS 200.00 j- 200.00 0.00 0.00 203.16 203.13 16.70 144.05 83.39 145.04 131.90 13.14 PASS 300.00 f 300.00 0.00 0.00 305.35 305.24 18.89 140.90 82.36 142.25 129.05 13.20 PASS 400.00 440.00 0.00 0.00 414.03 413.67 20.41 133~96 81.34 136.1g 122.83 ~n; ;e` 6 PASS SOO.OOj~ 499.95 2.14 1.50 518.49 5U.25 20.24 120.46 81.35 121.56 107.71 13.85 PASS 600.00-~ 599.63 8.57 6.00 618.13 615.75 18.24 105.55 84.46 101.31 86.80 14.51 PASS 700.00 f 698.77 19.27 13.48 715.27 711.49 14.03 89.68 93.93 77.44 62.74 14.69 PASS 800.OOt 797.08 34.20 23.92 809.29 803.89 7.88 73.49 117.97 56.54 41.88 14.66 PASS 849.65 f 845.51 43.18 30.20 854.57 848.28 •~9:03 65.41 138.03 52.73 ' 37.76 14.97 PASS 85330t 849.06 43.88 30.69 857.98 851.62 3.72 64.79 139.66 52.75 37.74 15A1 PASS 900.00 fi 89431 53.33 37.30 899.64 892.37 -0.33 57.15 159.70 57.25 41.47 15.77 PASS IOOO.OOj~ 990.18 76.60 53.57 982.93 97330 -10.87 40.59 188.44 90.02 72.82 17.20 PASS 1100.00-~ 1084.43 103.95 72.70 1059.00 1046.29 -2435 23.97 200.80 142.44 124.48 17.96 PASS c.-~ ~iearance liistance c:utott: ~UU.UU teet WELLPATH COMPOSITiON Offset Wellhnre: KRiJ43-7X (lff.cet Wellnath~ MWn <0-R610> I Start NID feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8610.00 NaviTrak (Standard MWD<0-8610'> KBU43-7X OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU43-7X Offset Wellpath: MWD <0-8610> NID Reference: Glacier#1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ~ ~ Clearance Report Closest Approach MARATHON KBU12-5 Version 2 Page 9 of 24 ri~~ BAKER Nu6NEs INTEQ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 DATA - Offset Wellbore: KTU24-6H Offset Wellpath: MWD <0-10960> Facility: Pad 41-7 Slot: slot #24-6 Well: KTU24-6H Threshold Value=0.00 feet j- = interpolated/extra polated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR M~' MD TVD North East MD TVD North East Bearing [feet] Sep [feet] ffeetl ffeetl ffeetl ffeetl Ifeetl ffeetl ffeetl ffeetl f°1 ffeetl 0.00 0.00 0.00 0.00 0.00 0.00 -61.81 224.55 105.39 232.90 219.79 13.11 PASS 100.00f 100.00 0.00 0.00 102.47 102.47 -61.49 224.07 105.35 232.37 219.25 13.12 PASS 200.OOt 200.00 0.00 0.00 204.92 204.90 -60.54 222.64 105.21 230.77 217.63 13.14 PASS 300.00~- 300.00 0.00 0.00 307.21 30715 -59.18 220.20 105.04 228.13 214.94 13.19 PASS 400.00 400.00 0.00 0.00 407.63 407.52 -59.50 216.72 105.3~ ~;;~ > 224.86 211.58 13.28 PASS SOO.OOt 499.95 214 1.50 507.81 507.62 -59.70 213.11 106.29 220.59 207.09 13.51 PASS 600.00-~ 599.63 8.57 6.00 606.87 606.62 -59.86 209.54 108.58 214.85 200.88 13.97 PASS 700.00 j~ 698.77 19.27 13.48 705.15 704.84 -60.15 206.19 112.40 208.52 194.37 1416 PASS 800.OOt 797.08 34.20 23.92 802.46 802.10 -60.57 203.08 117.88 202.75 188.36 14.38 PASS 900.00 fi 894.31 53.33 37.30 898.54 898.15 -61.OS 200.31 ~~Z5,Q6 199.17 184.43 14.75 PASS 939.18t 932.05 61.96 43.33 935.61 935.20 -61.25 199.32 128.30 198.80 183.84 14.96 PASS 949.92-~ 942.35 64.43 45.06 945.90 945.48 -61.31 199.06 129.23 198.84 183.81 15.03 PASS 1000.00f 990.18 76.60 53.57 992.83 992.40 -61.53 198.02 133.72 199.88 184.54 1534 PASS GC Clearance Distance Cutoff: 200.00 feet WF,i,i.PATH CnMPnSiTTnN nffset Wellhnre: KTiT24-6H nffset Wellnath~ MWn <0-10960> I Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 10960.00 NaviTrak (Standard) MWD <0-10960> KTU24-6H OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KTU24-6H Offset Wellpath: MWD <0-10960> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ! MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 10 of 24 ri~r BAKER Nu6NEs INTEQ . . ~, ~ . ~ Operator __ _ MARATHON Oil Company , ~~Y4 _ ~ ~Slot ~ - __-_ __ _- _ ..._,._____-~-__ slot #KBU12 5 ~. _ __....~~_.T Area __ Cook Inlet, Alaska (Kenai Penninsula) - -- Well _ KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 CLEARANCE DATA - Offset Wellbore: KTU24-6H (Pilotl Offset Wellnath: UNKN <8820-9010> Facility: Pad 41-7 Slot: slot #24-6 Well: KTU24-6H Threshold Value=0.00 feet ~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Aoriz GC Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet feet] [°] [feet] 0.00 0.00 0.00 0.00 0.00 0.00 -61.81 224.55 105.39 232.90 219.79 13.11 PASS 100.00-~ 100.00 0.00 0.00 102.47 102.47 -61.49 224.07 105.35 232.37 219.25 13.12 PASS 200.00 200.00 0.00 0.00 204.92 204.90 -60.54 222.64 105.21 230.77 217.63 1314 PASS 300.00 300.00 0.00 0.00 307.21 307.15 -59.18 220.20 105.04 228.13 214.94 1319 PASS ~Iq~;~ .,~ ~`,_ 0.00 , 0.00 ~~ , ..~ 't~: : ~ 407.52 -59.50 ~ ~ 216.72 ".~ ~ ,~.~5.35 ~' ~, .'.3;r~2~4.86 ~ 21~1~.58 ~~ ~ ~13.28 PASS'~ SOO.OOt 499.95 2.14 1.50 507.81 507.62 -59.70 213.11 106.29 220.59 207.09 13.51 PASS 600.00 f 599.63 8.57 6.00 606.87 606.62 -59.86 209.54 108.58 214.85 200.88 13.97 PASS 700.00-~ 698.77 19.27 13.48 705.15 704.84 -60.15 206.19 112.40 208.52 19437 14.16 PASS 800.00~- 797.08 34.20 23.92 802.46 802.10 -60.57 203.08 117.88 202.75 18836 14.38 PASS 900.00-~ 894.31 53.33 37.30 898.54 89815 -61.05 200.31 125.06 199.17 184.43 14.75 PASS 939.18t 932.05 61.96 4333 935.61 935.20 -61.25 19932 12830 198.80 183.84 14.96 PASS 94992~ 94235 64.43 45.06 945.90 945.48 -61.31 199.06 129.23 198.84 183.81 15.03 PASS 1000.00t 990.18 76.60 53.57 992.83 992.40 -61.53 198.02 133.72 199.88 184.54 15.34 PASS C-C Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KTU24-6H (Pilotl Offset Wellnath: UNKN <8820-9010> ~ Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8794.00 NaviTrak (Standard) MWD <0-10960> KTU24-6H 8794.00 9010.00 Unknown Tool (Standard) iJNKN <8820-9010> KTU24-6H (Pilot) OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KTU24-6H (Pilot) Offset Wellpath: UNKN <8820-9010> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon paQe 1 ofthis report) r MARATHON DATA - Offset Wellbore: KTU24-6H RD Offset ~ ! Clearance Report Closest Approach KBU12-5 Version 2 Page 11 of 24 ri~~ BAKER NV6HES INTEQ MWD <8844-8940> acility: Pad 41-7 Slot: slot #24-6 Well: KTU24-6H Threshold Value=0.00 feet fi = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR M~ MD TVD North East MD TVD North East Bearing [feet] Sep [feetJ ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl f°1 (feetl 0.00 0.00 0.00 0.00 0.00 0.00 -61.81 224.55 105.39 232.90 219.79 13.11 PASS 100.00~- 100.00 0.00 0.00 102.47 102.47 -61.49 224.07 105.35 23237 219.25 13.12 PASS 200.OOt 200.00 0.00 0.00 204.92 204.90 -60.54 222.64 105.21 230.77 217.63 13.14 PASS 300.OOj- 300.00 0.00 0.00 307.21 307.15 -59.18 220.20 105.04 228.13 214.94 13.19 PASS 400.00 400.00 0.00 0.00 407.63 407.52 -59.50 216.72 105.35 x,~~x~24:86 211.58 13.28 PAS5 500.00 f 499.95 2.14 1.50 507.81 507.62 -59.70 213.11 106.29 220.59 207.09 13.51 PASS 600.00-~ 599.63 8.57 6.00 606.87 606.62 -59.86 209.54 108.58 214.85 200.88 13.97 PASS 700.OOj~ 698.77 19.27 13.48 705.15 704.84 -60.15 206.19 112.40 208.52 194.37 14.16 PASS 800.OOt 797.08 34.20 23.92 802.4b 802.10 -60.57 203.08 117.88 202.75 188.36 14.38 PASS 900.00 894.31 53.33 37.30 898.54 898.15 -61.05 200.31 125.06 199.17 184.43 14.75 PASS 939.18 f 932.05 61.96 43.33 935.61 935.20 -61.25 199.32 128.30 198.80 183.84 14.96 PASS 949.92t 942.35 64.43 45.06 945.90 945.48 -61.31 199.06 129.23 198.84 183.81 15.03 PASS 1000.00t 990.18 76.60 53.57 992.83 992.40 -61.53 198.02 133.72 199.88 184.54 15.34 PASS GC Clearance D istance Cutoff: 2 00.00 feet WELLPATH COMPOSITION Offset Wellbore: KTU24-6H RD Offset Wellnath: MWD <8844-8940> ~ Start MD End MD Positional Uncertainty Modei Log Name/Comment Wellbore [feet] feet 0.00 8794.00 NaviTrak (Standard) MWD <0-10960> KTU24-6H 8794.00 8940.00 NaviTrak (Standard) MWD <8844-8940> KTU24-6H RD ~ ~ Clearance Report Closest Approach MARATHON KBU12-5 Version 2 Page 12 of 24 ri~~ BAKER Nuc~NEs INTEQ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 CLEARANCE DATA - Offset Wellbore: KBUll-8X Offset Wellpath: MWD <0-7659> !, Facility: Pad 41-7 Slot: slot #KBU11-8X Well: KBU11-8X Threshold Value=0.00 feet I ~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR ~ MD TVD North East MD TVD North East Bearing [feet] Sep [feet] 'Status" [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 0.00 0.00 0.00 0.00 0.00 0.0 0 18.21 305.61 86.59 306.15 293.04 13.11 PASS GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSiTinN nffset Wellhnre: KRIJI l-RX nff.cet Wellnath~ MWn <0-7659> I Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 7659.00 NaviTrak (Magcorrl) MWD <0-7659> KBU11-8X OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBUll-8X Offset Wellpath: MWD <0-7659> NID Reference: RKB (Glacier i) (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 13 of 24 ~ ri~~ BAKER NuaNEs INTEQ . . ~. 1 ~ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 DATA - Offset Wellbore: KBU33-6 Offset Wellpath: GMS <0-7902>, MWD <7902-8110> acility: Pad 41-7 Slot: slot #KBU33-6 Well: KBU33-6 Threshold Value=0.00 feet fi = interpolated/extrapolated station ef MD Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR MASD ACR [feet] TVD North East MD TVD North East Bearing [feet] Sep [feet] Statu! ~feetl ffeetl ffeetl ffeetl ffeetl ffeetl ffeetl f°1 ffeetl 0.00 0.00 - 0.00 - - 0.00 - - 0.00 - - 0.00 - - -64.13 - - 124.60 -- 117.23 140.14 - - 127.02 13.11 PASS 100.00-~ 100.00 0.00 0.00 100.10 100.10 -64.54 124.35 117.43 140.10 126.98 13.12 PASS 200.00 f 200.00 0.00 0.00 200.31 200.30 -65.38 123.77 117.84 139.98 126.83 13.15 PASS 300.00-~ 300.00 0.00 0.00 300.64 300.63 -66.21 122.94 118.31 139.63 126.43 13.21 PASS 400.00 400.00 0.00 0.00 400.87 400.85 -67.08 121.86 118.83 139.10 125.81 ~ 13.29 PASS 500.00 f 499.95 2.14 1.50 501.22 501.18 -68.00 120.49 120.52 138.14 124.67 13.47 PASS 600.00 f 599.63 8.57 6.00 603.56 603.50 -68.33 118.40 124.38 136.24 122.48 13.77 PASS 700.00 f 698.77 19.27 13.48 705.94 705.79 -65.95 114.75 130.08 132.55 118.61 13.94 PASS 800.00 f 797.08 34.20 23.92 807.02 806.67 -61.28 110.63 137.76 129.33 115.11 14.22 PASS 900.OOf 894.31 53.33 37.30 910.06 909.24 -52.73 106.07 147.04 : = 127.2$ 112.52 '14.'76 PASS 1000.00f 990.18 76.60 53.57 1017.83 1015.57 -36.17 100.97 157.20 124.93 109.25 15.68 PASS 1066.72j- 1053.26 94.40 66.02 1085.05 1081.19 -22.02 97.54 164.85 123.80 107.25 16.55 PASS 1084.96j~ 1070.37 99.58 69.65 1103.62 1099.26 -17.86 96.54 167.10 123.90 107.15 16.74 PASS 1100.OOj~ 1084.43 103.95 72.70 1118.71 1113.92 -14.41 95.71 169.00 124.13 107.23 1691 PASS =1200.00~ 1176.81 135.31 94 63 r~~~Z8.78 1210.70 10.33 89.79 18~;~ 129.58 111.59 17.99 PA3S 1300.00-~ 1267.06 170.58 119.30 1318.76 1306.42 38.45 83.32 195.23 142.49 123.58 18.91 PASS 1400.OOj~ 1354.93 209.68 146.65 1418.33 1400.39 70.72, 76.88 206.66 162.00 142.32, 19.67 , PASS , 1500.OOt 1440.18 252.49 176.59 1510.72 148694 ~ 102.3~1 702G i 215.30; .(g9.34: Ifi9.~F5 20.39 P~SS c:-(: c:learance liistance (;utoff: 2UU.UU feet WELLPATH COMPOSITION Offset Wellbore: KBU33-6 Offset Wellnath: GMS <0-7902>. MWD <7902-8110> ~ Start MD [feet End MD feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 7902.00 Generic gyro - continuous (Standard) GMS <0-7902'> KBU33-6 7902.00 8110.00 NaviTrak (Magcorrl) MWD<0-8ll0> KBU33-6 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU33-6 Offset Wellpath: GMS <0-7902>, MWD <7902-8110> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 14 of 24 WELLPATH COMPOSITION Offset Wellbore: KBU42-7 Offset Wellpath: MWD <0-7570> ri~~ BAKER I~IY6MES INTEQ Start MD [feet End MD [feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 7570.00 NaviTrak (Magcorrl MWD <0 - 7570> KBU42-7 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KBU42-7 Offset Wellpath: MWD <0-7570> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) GC Clearance Distance Cutoff: 200.00 feet ~ ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 15 of 24 ,~.^ BAKER I~IY6I~IES INTEQ ~ ~ ~. 1 ~ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 CLEARANCE DATA - Offset Wellbore: KDU4 Offset Wellpath: GMS <0-5549> Facility: Pad 41-7 Slot: slot #KDU 4 Well: KDU4 Threshold Value=0.00 f = interpolated/extrapolated station feet Ref Ref Ref Ref Offset Offset Offset Offset Horiz C C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feetJ Sep [feet] Status; [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 0.00 0.00 0.00 0.00 8.00 0.00 -292.64 26439 137.90 394.39 381.27 13.11 PASS i GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KDU4 Offset Welluath: GMS <0-5549> ~a...,, . ~_,~~..... _~...~ ~_, ~, ~ :~ Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 5549.00 Level Rotor Gyro (Standard) GMS <0-5549> KDU4 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KDU4 Offset Wellpath: GMS <0-5549> NID Reference: Actual Datum (RKB) Offset TVD dc local coordinates use Reference Wellpath settings (See WELLPATHDATUMon paQe 1 of this report) ~ MARATHON [tATHON Oil ~ k Inlet, Alaska ai Gas Field 41-7 Clearance Report Closest Approach KBU12-5 Version 2 Page 16 of 24 ~_ _ _ _ ___ - --- lot ~ #KBU12-5 CLEARANCE DATA - Offset Wellbore: KU13-5 Offset Wellaath: GMS <0-8120> ri~~ BAKER Nu~NE_s INTEQ Facility: Pad 41-7 Slot: slot #KTU13-5 Wetl: KU13-5 Threshold Value=0.00 feet ' j~ = interpolated/extrapolated station ! Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR MASD ACR ; MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status~ [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feetj 0.00 0.00 0.00 0.00 3.90 -0.10 -192.67 226.94 130.33 297.70 285.14 12.56 PASS ` GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KU13-5 Offset Well~ath: GMS <0-8120> ..~_.~~.~.~,~.. ~ Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8120.00 SRG (Standard) GMS <0-8120'> KU13-5 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU13-5 Offset Wellpath: GMS <0-8120> MD Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on pa~e 1 of this report) MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 17 of 24 CLEARANCE DATA - Offset Wellbore: KTU43-6X Offset Wellnath: GMS <0-8370'> r~~~ BAKER NuaNEs INTEQ Facility: Pad 41-7 Slot: slot #KTU43-6X Well: KTU43-6X Threshold Value=0.00 feet ~- = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD T`VD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 0.00 0.00 0.00 0.00 0.00 0.00 -261.18 218.55 140.08 340.56 327.44 13.12 PASS C-C Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KTU43-6X Offset Welbath: GMS <0-8370'> y`;~~'~~H ~~J ~ Start MD feet] End MD feet Positional Uncertainty Model Log Name/Comment Wellbore -14.00 8356.00 Level Rotor Gyro (Standard) GMS <0-8370> KTU43-6X OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KTU43-6X Offset Wellpath: GMS <0-8370'> MD Reference: Glacier 1(RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATHDATUMon paAe 1 of'this report) MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 18 of 24 CLEARANCE DATA - Offset Wellbore: KTU43-6XRD2 Offset Wellnath: MWD <'7'700-9470> Facility: Pad 41-7 Slot: slot #KTU43-6X Well: KTU43-6X Threshold Value=0.00 feet ~ j~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] 0.00 0.00 0.0 0 0.00 0.00 0.00 -261.18 218.55 140.08 340.56 327.81 12.75 PASS GC Clearance Distance Cutoff: 200.00 feet HULE & CASING SECTIONS Offset Wellbore: KTU43-6XRD2 Offset W ellpath: M WD <7700-9470> String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 6in Open Hole 7700.00 9355.00 1655.00 7109.40 8729.29 615.53 -8.94 649.49 74.37 4.125in Open Hole 9355.00 9470.00 115.00 8729.29 8843.55 649.49 7437 649.17 78.32 4.Sin Liner -14.00 9355.00 9369.00 -28.00 8729.29 -159.22 133.23 649.49 74.37 WELLPAT H COMPOSITION Offset Wellbore: KTU43-6XRD2 O ffset Well ath: MWD <770 0-9470> Start NID feet End NID feet] Positional Uncertainty Model Log Name/Comment Wellbore -14.00 7473.00 Level Rotor G ro (Standard) GMS <0-8370> KTU43-6X 7473.00 7700.00 MTC (Collar, pre-2000) (Standard MWD <7670-9534> KTU43-6XRd 7700.00 9470.00 NaviTrak (Magcorrl) MWD <7700-9470> KTiJ43-6XRD2 ri~~ BAKER Nu6NEs INTEQ MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 19 of 24 ri~~ BAKER Nu6NEs INTEQ CLEARANCE DATA - Offset Wellbore: KTU43-6XRd Offset Wellpath: MWD <7670-9464> Facility: Pad 41-7 Slot: slot #KTU43-6X Well: KTU43-6X Threshold Value=0.00 feet -~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] °] [feet] 0.00 0.00 0.00 0.00 0.00 0.00 -261.18 218.55 140.08 340.56 327.44 13.12 PASS GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KTU43-6XRd Offset Well~ath: MWD <7670-9464> ry~ Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore -14.00 7473.00 Level Rotor Gyro (Standard) GMS <0-8370> KTU43-6X 7473.00 9507.00 MTC (Collar, pre-2000) (Standard) MWD <7670-9534> KTU43-6XRd OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KTU43-6XRd Offset Wellpath: MWD <7670-9464> MD Reference: Glacier 1(RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ~ MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 20 of 24 . ri~~ BAKER Mt~6NES INTEQ CLEARANCE DATA - Offset Wellbore: KU11-8 Offset Wellpath: GMS <0-5350> Facility: Pad 41-7 Slot: slot #KU 11-8 Well: KU11-8 Threshold Value=0.00 feet ~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz GC Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet [feet] [feet] [feet] [feet] [feet] [°] [feet] 0.00 0.00 0.00 0.00 7.20 0.20 -414.02 325.07 141.86 52639 513.27 13.11 PASS C-C Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITiON Offset Wellhnre: KiJI l-R nffset Welbath: GMS <0-5350> ~ Start NID feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 5350.00 SRG (Standard) GMS <0-5350'> KU11-8 u MARATHON Clearance Report Closest Approach KBU12-5 Version 2 Page 21 of 24 ` J ri~~ BAKER M1~6NES INTEQ ~ . ~. 1 ~ Operator MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 WELLPATH COMPOSITION Offset Wellbore: KU43-6 Offset Well ath: GMS<0-4129>, MSS<4174-5701> Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore -5.00 4174.00 Generic gyro - continuous (Standard) GMS <0-4129> KU43-6 4174.00 5701.00 Photomechanical Ma netic (Standard) MSS <0-5706'> KU43-6 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU43-6 Offset Wellqath: GMS<0-4129>. MSS<4174-5701> IMD Reference: Sidetrack Datum (RKB) IOffset TVD & local coordinates use Reference Wellpath settings I (See WELLPATH DATUM on nage 1 of this renort) GC Clearance Distance Cutoff: 200.00 feet MARATHON ~ . Clearance Report Closest Approach KBU12-5 Version 2 Page 22 of 24 ri~~ BAKER N~16NES INTEQ WELLPATH COMPOSITION Offset Wellbore: KU43-6Rd Offset Wellpath: MWD <4250-5740> ~ ~ Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore feet] [feet] -5.00 4174.00 Generic gyro - continuous (Standard) GMS <0-4129> __._ KU43-6 ._ __~~__ ; ~ 4174.Q0 ~ ~. 5~40.00 ---.~~- _. ~T~_ ~ M'I'C; (Coilar, p~•e-?~0(?) {Stanc~ard) ___._----_. MWD <4?_50-57~~> _ ~ KU43-bI~d _ GC Clearance Distance Cutoff: 200.00 feet ~ ~ Clearance Report ~~~~ Closest Approach BAKER KBU12-5 Version 2 NY6i1ES MARATHON Page 23 of 24 INTEQ , . ,. ____ _---- _____ - ----- _.. __.~ Operator MARATHON Oil Company Slot slot #KBU 12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 ~ Field Kenai Gas Field Wellbore KBU12-5 Facilitv Pad 41-7 CLEARANCE DATA - Offset Wellbore: KU43-6A Offset Wellpath: MSS <0-5300> Facility: Pad 41-7 Slot: slot #KU 43-6A Well: KU 43-6A Threshold Value=0.00 feet ~ = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist' Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing [feet] Sep [feet] Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] feet] [°] [feet] 0.00 0.00 0.00 0.00 6.21 0.21 -313.73 346.0 2 132.20 46'7.07 459.93 7.14 PASS GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSITION Offset Wellbore: KU43-6A Offset Welbath: MSS <0-_5300> ~ Start MD feet End MD feet _ _ Positional Uncertainty Model - Log Name/Comment Wellbore 0.00 5300.00 Photomechanical Magnetic (Standard) MSS <0-5300'> KU43-6A OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU43-6A Offset Wellpath: MSS <0-5300> MD Reference: Actual Datum (RKB) Of.fset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) MARATHON ~ ~ Clearance Report Closest Approach KBU12-5 Version 2 Page 24 of 24 ri~~ BAKER Nu6NEs INTEQ . . Operator ,. , . ~ MARATHON Oil Company Slot slot #KBU12-5 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU12-5 Field Kenai Gas Field Wellbore KBU12-5 Facility Pad 41-7 CLEARANCE DATA - Offset Wellbore: KU 43-7 Offset Wellpath: MSS <0-5707> Facility: Pad 41-7 Slot: slot #KU 43-7 Well: KU 43-7 Threshold Value=0.00 feet f = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing (feet] Sep [feet~ Status [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet [°] feet] 0.00 0.00 0.00 0.00 5.21 0.21 -439.25 288.99 146.66 525.79 512.68 13.12 PASS GC Clearance Distance Cutoff: 200.00 feet WELLPATH COMPOSiTinN nffset Wellhnre~ Kit d3_7 nff.cet Wellnath~ ~vrcc <n_s~m> ~ Start MD feet End MD feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 5707.00 Photomechanical Magnetic (Standard) MSS <0-5707'> KU 43-7 OFFSET WELLPATH MD REFERENCE - Offset Wellbore: KU 43-7 Offset Wellpath: MSS <0-5707> NID Reference: Actual Datum (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on nage 1 of this renort) • • Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. I NTEG RATE D FLU I D~ ENGINEERING PRO~ECT PLAN M~ S~NACO .,- _-_ __._:.~.~~~ Prepared For: MARATHON OIL COMPANY Well KBU 12-5 Prepared by: Tony Tykalsky Reviewed by: Mark Fairbanks Presented to: Will Tank March 15, 2007 IFE Kenai Peninsula, Alaska • '~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the KBU 12-5 Well to be drilled this year. The following is a brief synopsis of the program. Overview: KBU 12-5 is a development well targeting the Tyonek formation at the Kenai Gas Field. Flo-Pro fluid will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with a 3-1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel/Gelex spud mud. No problems were noted in this interval while drilling the offset wells. Intermediate Interval: This interval will be drilled with a Flo-Pro NT fluid. After drilling out the surface cement, the well will be displaced to a modified Flo-Pro KCl fluid. While the pro~ram calls for the standard SafeCarb bridging material, Mix II should be added to the mud svstem prior to drillin~ the Sterling A8 sand (+/- 4565' MD). This is a highly porous depleted zone that has contributed to losses of whole mud in the past. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre-treated with Bicarb and/or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7- 9 cc's API far this interval. Based on offset well historv, mud wei~hts above 10.0 PPG mav be required. Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 303A and Sodium Meta Bisulfate will be added to the drilling fluid that will be left between the 3-1/2" completion string and the 9-5/8" casing on the final circulation prior to cementing. Tony Tykaisky Project Engineer /M-I SWACO Reference Wells: KBU 22-6; KBU 11-8Y; KBU 41-6; KBU 11-7 NOTE: This nrogram is nrovided as a suide onlv. Well conditions will alwavs dictate fluid properties required. ~~ ~ ~ '~ Marathon Oil Company Well Name: KBU 12-5 _ Location: Kenai, Alaska. EXECUTIVE SUMMARY Our overall goal is no spills and no incidents while providing fluids and solids control services to Marathon Oil Company. n ` . ... Qur goal for F(Bl! 12-5 is to remove dril! solids from th~ mud system at ~ ca~t of less than $0.34 per pound. ~ ~ With the revised fluid fo~rmulation (utili~ing th~ interm~diate int~rval fluid fear the production interval), we expect to drill this w~ll for a product cost ~f les~ th~n $28.51 per foot. We estimate the use of less that 6802 barrels to complete this weli, not ~ withstanding any un-anticipated losses to the formation. ~ I~ 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 ~ I~ $1,250,000. With continued usage of our equipment, we expect to provide more savings to you during future operations. In addition, the installation of Mongoose - shakers has allowed the utilization of finer mesh screens on intermediate and production intervals. Running finer mesh screens has reduced the need for the centrifuge van. IFE ~ ~ '~ Marathon Oil Company Well Name: KBU 12-5 _ Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth ; Benchmark 1 Benchm~rk 2' Benchmark 3 Benctimark 4 Interval ~~) Fluid cost per foot Volume Usage Solids Removal 0 -1950' < $4.95 ft < 2340 bbls 1950 - <$44.68 < 3715 bbls 6561' 6561 - < $16.78 ft < 648 bbis 8900' Total Avg. Max. Project <$2g.51 ft <6802 bbis <$0.34 Ib No Spills from Targets for Centrifuge Van Drilling Operation Interval ,~ ~ ~ .; ~ ~ . ~'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth ND Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13-3/8" 16" 1950' 1768' Gel/Gelex Spud Mud 8.6 - 9.4 6 $16,125 Screens 165/175 mesh Desilter Centrifuge Van 9-5/8" 12-1/4" 6561' S412' Flo-Pro w/SafeCarb 9.0 - 7 $213,579 Screens 200 mesh < 9.5 Desi Iter Centrifuge Van 3-1/2" 8-1/2" 8900' 783T Flo-Pro w/SafeCarb 9.4 - 6 $47,159 Screens 200 - 230 10.6+/- mesh Desilter Centrifuge Van 3 1/2" 8-1/2" Completion 8900' 7837' 6% KCI 8.55 4 $11,144 - 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 includes provision for whole mud losses in the intermediate interval (336 barrels) - Cost includes 2% Lubetex concentration in intermediate and production interval. IFE ~ w ~ , ~ -"'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Estimated Product Usage Summary PRODUCT Surface 16" Intermediate 12-1/4" Production 8-1/2" Completion 3-1/2" Total Usage % °~ `Z`otal Cost M-I Bar 0 371 259 0 630 1.86 M-I Gel 468 0 0 0 468 1.75 Gelex 29 0 0 0 29 0.18 Soda Ash 12 19 6 0 36 0.25 Caustic Soda 12 56 13 0 80 1.28 Conqor 404 0 11 3 0 14 639 Sodium Meta Bisulfate 23 37 13 2 75 1.86 Bicarb 0 19 6 0 25 0.17 Conqor 303 0 0 0 4 4 0.72 FloVis 0 260 39 0 299 23.22 Desco CF 9 0 0 0 9 0.16 Polypac UL 12 130 23 0 164 9.67 KCl 0 1560 272 42 1874 13.00 Safecarb 0 1672 194 0 1866 1337 Lubetex 0 59 10 0 69 19.13 Mix II 0 149 0 0 149 139 SteelLube 0 0 4 0 4 1.27 Citric Acid 0 0 13 0 13 0.57 Defoam X 0 8 4 0 12 0.42 Engineer Service 6 7 6 4 23 ~~ ~ ~'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments KBU 22-6 76 182 8.7 14 35 14.6 Spud in, drill ahead 1550 9.2 14 22 6.4 Drlg ahead 1680 9.2 14 20 7.8 Drlg to casing point, run surface casing 12.25 3453 9.3 8 11 9.2 Drlg out, displace to FloPro, Run LOT, drlg ahead 4649 9.4 12 14 8.8 Drlg ahead 5338 9.2 14 18 5.8 Lost partial returns @ 4929' spot 50 bbl LCM pill, regain returns 6032 9.3 14 16 5.4 Lost partial returns @ 5840', add LCM to mud 6535 9.6 17 19 5.2 Reduce ppg, pump LCM pills, run casing, cement same 8.5 7095 9.85 17 21 5.8 Drlg out cmt, LOT, drlg ahead 8136 9.85 17 23 5 Drlg ahead, short trip OK, drlg ahead 8855 10.3 19 21 5.2 Drlg to csg point, short trip, some tight spots, POH for logs 8855 10.45 19 22 5.8 Logging well 8855 10.65 19 20 5.2 RIH, weight up to 10.6 PPG, condition mud, POH 8855 10.65 19 19 5.8 Run excape string, cement same, no losses, disp to brine KBU 11-8Y 16 498 8.65 11 16 17 Spud in, drill ahead 155U 9 9 16 8.8 Drig to csg point, short trip OK, POH 1550 9.1 9 19 10.6 Run & cement surtace casing 12.25 3774 9.1 9 17 7 Drlg out, disp to FloPro, drlg ahead 5033 9.3 13 15 7.8 Drig to 3884', short trip OK, drlg ahead 5820 9.45 17 23 5.8 Drlg to csg point, add 3% Lubetex (torque), POH 5820 9.55 19 22 5.8 Log well, wiper trip, 5820 9.7 20 26 5.4 Run csg, cement same, lost partial returns 8.5 5840 9.3 94 18 6.2 Drlg out, LOT, drlg ahead, add EMI-920 and Lubetex for torque 7574 9.75 17 27 5 Drlg ahead 8220 10 16 27 5.4 Drlg to TD, increase PPG to 10.0 for gas 8220 10.5 17 28 5.8 POH, wireline well, increase PPG to 10.5 for gas 8220 10.8 17 26 5.2 Run and cement excape string, disp to brine IFE E~.i ~' ~ ~ '~ Marathon Oil Company Well Name: KBU 12-5 _ Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments KBU 41-6 16 1616 9.05 18 24 9.6 Spud in, drill ahead 1862 9.3 16 17 7.8 Drlg to casing point, run surface casing 1862 9.3 12 14 7.2 Cement surface casing 12.25 3431 9.3 12 16 8 Drlg out, displace to FloPro, Run LOT, drlg ahead 5044 9.2 13 17 8.4 Drlg to 4206', wiper trip OK, drlg ahead, pump sweeps every 500 ft 6289 9.2 13 19 7.4 Drlg to 5278' lost returns, stopped with LCM, drlg ahead 7105 9.3 14 23 7.6 Drlg to 6897', wiper trip OK, drlg ahead 7220 9.3 11 23 8.6 Drlg to casing point, wiper trip Ok, POH to run casing 7220 9.8 12 18 8.4 Run 9-5/8" csg, cement same, bump plug 8.5 7374 9 12 17 6.4 Drlg out, disp to new fluid, LOT = 16.0 PPG, drlg ahead 7735 9.2 10 16 5.3 Trip for core #1 7776 9.3 12 13 5.1 Core #1 7835 9.5 14 14 5.2 Core #2 8445 9.7 14 16 5 Drlg to core point 8535 9.95 14 19 5 Core #3 8807 10.1 16 20 4.6 Drlg ahead, increase Lubetex to 4% 9733 10.3 16 19 4.6 TD well, 9733 10.6 15 78 4.4 Wiper trip, inc PPG to 10.6 for gas, POH for logs 9733 10.8 15 20 5.2 Log well, wiper trip, treat for running coals, POH 9733 10.8 14 21 5.6 Run and cement excape string, disp to brine KBU 11-7 76 187 8.7 7 28 16 Clean out conductor, spud in 1477 9 8 23 9.2 Drlg ahead 7725 9.2 9 20 6.2 Drlg to casing point, run surface casing 1725 9.3 8 22 7.4 Cement casing, no losses, BOP's 12.25 2822 9.4 8 18 7.2 Drlg out, displace to FloPro, Run LOT = 15.2 PPG, drlg ahead 4460 9.1 11 18 7.8 Drlg ahead with miminal losses 5080 9.3 11 75 8.6 Short trip, OK, drlg to core point (d15080' 5160 9.4 12 20 7.5 Core #1 5249 9.3 15 20 6.7 Core #2 5449 9.4 15 12 7 Open core runs to 12-1/4", drlg ahead 5585 9.6 17 23 7.3 Logging 5585 9.5 16 24 7 Fish for RFT tool parts 5585 9.5 17 21 7.4 Recover fish, log with RFT tools 5585 9.5 17 22 8.2 Run & cmt 9-5/8" casing 8.5 5869 9.5 22 26 6.8 Drlg out, LOT = 15.2 PPG, drlg ahead 6940 9.9 21 23 5.8 Drlg ahead, weight up for gas, wiper trip, backreaming needed 7770 10.3 26 27 6 RIH, drlg ahead, weight up for stability, add asphasol for coals 7900 70.5 27 29 5.8 TD well, wiper trip, extensive backreaming, POH for logs 7900 10.5 23 23 5.8 Log well on drlg pipe 7900 10.6 26 30 5.1 Cleanout run prior to compleiton. 7900 10.65 26 28 5.2 Run and cement excape string, disp to brine '~ ~ ~'~ ~ Marathon Oil Company Well Name: KBU 12-5 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 Stering A8 and Upper & Middle Beluga Sands - 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 between 6- 8 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 . ~ INTERMEDIATE INTERVAL - PPB. Also. whenever aossible ~ DRILL SOLIDS - MBT - The MBT should be kept at less than 7.5 ppb in the intermediate and production intervals 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 KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ SOLIDS VAN USAGE - The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP - All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. IFE ~ ~'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Interval Summary -16" hole 0 -1950' Drilling Fluid System GeUGelex 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 - 165 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, hole cleaning. nterval Drilling Fiuiti Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (!b./100fta) (mU30min) (%) 0- 1950' 8.6 - 9.4 60 - 100 25 - 35 NC - 12 +/- 9.5 < 7.5% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 seconds/quart funnel viscosiTy. - Lower funnel viscosity to +/- 75 after gravel zone has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme LJL prior to running surface casing. - Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 2340 barrels. - Estimated haul off volume - 3879 barrels. ~~ ~.L~ ~ '~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 1950 - 6561' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac Supreme IIL / KCl / SafeCarb 10, 40, 250 / Mix II /MI Bar / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate Lubetex 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 nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Sotids (ft) (ppg) (c .) (c s) (mU30min) (%) 1950 - 6561' 9.0 -< 9.5 8-12 40,000+ 7- 9 < 7.5 +/- 5% - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed fluid formula. Pre-heat makeu~ water with steam hoses as much as possible. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test - As mud heats up, increase F1oVis concentration to 2 PPB as needed. - NOTE: Be prepared for whole mud losses in the Sterling A8 sands (+/- 4465' MD). - If torque or sliding problems occur, add 1- 3% Lubetex. - NOTE: This fluid will be used in the nroduction interval. It is inherent to maintain nroner fluid properties for that ~urpose. - Estimated volume usage for interval - 3715 barrels. - Estimated haul off volume - 4033 barrels. - Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ ~ 1~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Fluid Formula -12-1/4" Interval 12-1 /4" I nterval from 1950 - 6561' Inuut Descri ion ` KBU 12-5 Mud 1Atsi ht 9.0 - 9.5 Preh wa#ed Gel ' No e' ht Mate~ial Code SafeCarb Preh drated Gel Gonc: W' ht RAateriai SG 2.8 KCI Wt°~ : 6 NOTE: Pre-heat makeup water with steam hoses as much as possible. Output -1 bbl t3Fnrl~trtc ' ('`nnncsrx~mtinr~ 1lnhEmo ~_ P 1 Water 298.70 298.70 0.853 298.70 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.25 1.25 0.003 0.83 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 Potassium Chloride 19.07 19.07 0.023 7.98 Inhibition 7a SafeCarb 10 4.00 4.00 0.040 1.44 Brid in A ent 7b SafeCarb 40 12.00 12.00 0.012 4.32 Brid in A ent 7c SafeCarb 250 4.00 4.00 0.004 1.44 Brid in A ent 8 KlaGard 4.00 4.00 0.008 2.25 Inhibition Plan on addin 2.5 - 5 PPB Mix II to the mud s stem rior to drillin into the Sterlin A8 sand +/- 4565' MD 9 Mix II 5.00 5.00 0.010 3.12 LCM If tor ue becomes a roblem or slidin is difficult add 1- 3% of the followin : 10 Lubetex 14.00 14.00 0.041 14.43 Lubricit If bit ballin becomes a roblem add the followin : 11 D-D CWT 1.00 1.00 0.003 1.00 Reduce BHA Ballina 399 399 1 ec! ~It~td ttt 9.500 EstFi ~iorid~ 29600 ~~ ~~ ~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Bridging Formula -12-1/4" hole Opsrator: Marathon Oil Compeny Max Permeability : 3000 mDarcy M~ ~~, 0 PT I B R 1 ~G E T"" wNl Name: KeU 12-5 Sand Control Device : - ~ LceaUon: Kenai Gas Field ~ 1999 -2006 Ma L.L.C. -All Righis Reserved Commenta: Fixed Blend A-8 Sands Optimum Bridging Agent Blend for Fixed Input c O i7 7 a ~ N 0 N .y ~ ~ u C a a m a ~ E ~ U D.1 0'~ Particle Size (microns) D10-D50-D90 D70 Target I Blend: 2.2 I 2.3 miero~s 0.50 Target I Blend: 54.8 / 43.7 mierona D90 Target I Blend: 777.5 / 276.2 microns Fixed Blend for 0 to 700 % CPS Range Brend Name BAdaina Aaentllb/ bbll Vol Y. 6=SafeCarb 10 (F) 4.0 20.00 D=Safe-Carb 40 (M) 72.0 80.00 E=3afe~Carb 250 (C) 4.0 20.00 B 20.0 . E ~ zo.or ~` D 60.0X Simulation Accuracy Calcium Carbonate added : 20 Iblbbl Avg Ertor 0- 100 X CPS Range : 2.74 Ye Max Error 0- 100 % CPS Range : 14J9 ~ IFE ~i'~~ i 1~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 6561- 8900' Drilling Fluid System Fto-Pro Fluid Key Products Flo-Vis / Polypac Supreme UL / KCl / SafeCarb / MI Bar / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / SteelLube / Lubetex 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 nterval Drilling Fluid Properties ` Depth Interval (ft) Mud Weight ( pg) Plastic Viscosity (cp.) LSRV 1 min (c s) API Fluid Loss MBT (mU30min) Drilt Solids (%) 6561 - 8000' 9.4+/- 10 -14 30,000+ 6- 8 < 7.5 +/- 5% 8000 - 89Q0' 10.0 -10.6 12 -16 30,000+ 5- 7 < 7.5 +/- 5% - Pre-treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume as needed. - NOTE: Plan on increasin~ the mud wei~hts to 10.0 - 10.6 PPG to control nressures in the Tvonek formation (+/- 8460' MD). However. mud weight increases should not be needed while drilling the lower Belu~a formation. - NOTE: If inetal-to-metal toraue is a nroblem after drilling out the 9-5/8" casin~, then add 0.5 - 1% SteelLube~rior to addin~Lubetex. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Estimated additional volume for interval - 648 barrels. - Estimated haul off volume - 2294 barrels. - Condition mud prior to running 3-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ L~ ~'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Dilution Formula - 8-1/2" Interval 8-I12" Interval from 6561 - 8900' Inout descri' tion KBU 12-5 Allud lttte' ht 9.4 -10.0+ Preh r~t~! Gel No Wei ht Ma#eri~! Code MI BaR Pre ' rat~f Ge1 Conc. Ws ht Mat~riaf SG ' 4.2 KC1 Wt% 6 Additi~r~ Fietd tb ', Lab rn Fietd bb! t~a~ ml U~ " e 1 Water 325.19 325.19 0.929 325.19 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 FloVis Plus 2.00 2.00 0.005 1.34 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.33 Fluid Loss Control 5a SafeCarb 10 15.00 22.50 0.017 5.67 Brid in A ent 5b SafeCarb 40 5.00 7.50 0.006 1.89 Brid in A ent 6 Potassium Chloride 20.76 20.76 0.025 8.68 Inhibition 7 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Contro~ 8 Caustic Soda 0.50 0.50 0.001 0.23 H Control 9 Sodium Meta Bisulfate 0.50 0.25 0.001 0.25 O en Scaven er If hi h tor ue in incured while drillin out t he 9-5/8" cas in add 0.5 -1.0 % SteelLube 10 SteelLube 3.50 3.50 1.500 3.50 Metal to Metal Lub If slidin or hi h tor ue becomes a roblem add 1- 3% of the followin 11 Lubetex 7.00 7.00 0.021 7.00 Lubrici If sloughing coals become a roblem add 2- 4 b of the followin 12 As hasol Su reme 2.00 2.00 0.004 1.33 WeAbore Stabilit Mix fluid in the order listed above. Tot~l 380.1 380.1 Estimat~d'Y~1urn+~ Usa e 648 Barrels Galculatec! Aaud W~ ht ` 9.050 Tota1 Chloritle 29600 ~ ~~ ~i~.l^~i ~ ~ ~ - -' 1~ C~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Interval Summary - Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 12-5 VOlumes: Tubing Volume s-~i2" Tubing 77.43 barrels Annular Volume Casing x Tubing 402.39 barrels bg 3.50 x 2.992 x 8900 ft Open Hole x Tbg 120.23 barrels Total Annular Volume 522.63 Tubing Volume ~~.a3 Total Hole Volume soo.os ~9.625 x 8.681 @ 6561 ft MD ~, 8.500 x 3.50 @ 8900 ft MD Treatment Procedures. 1. After the 3-1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 400 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 100 barrels of drilling fluid pumped (4 drums 8 4 sacks total) 3. After the 400 barrels of drilling fluid with corrosion inhibitors have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3-1/2" x 9-5/8" annulus. IFE Fjir~ ~ 1~ HSE Issues ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. IFE ~ ~zA ~`~'~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit Reactivit PPE M-I BAR Weighting Agent *1 ~ 0 E M-I GEL Viscosity control *1 1 0 E GELEX eentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Carb 10,40,250 Bridging and weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SALT (Solar) Densifier 1 0 0 E POTASSIUM CHLORIDE Shale Inhibitor 1 0 0 E CAUSTIC SODA Alkalinity control 3 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Alkalinity control 1 1 0 E SODIUM BICARBONATE Alkalinity control 1 0 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 J DEFOAM X- Defoamer 1 1 0 .l G-SEAL Sized graphite LCM 1 1 0 E SteelLube Lubricant 1 1 0 .1 LUBE TEX Lubricant 1 1 0 J D-D CWT Detergent Z ~ Q ~ Concor 404 Corrosion Inhibitor 1 1 0 .1 SAFEKLEEN Drilling fluid additive 1 1 0 .1 Asphasol Supreme Shale Inhibitor 1 1 0 .1 Sodium Meta Bisulfate Oxygen Scavenger 1 1 0 J IFE ~ '~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1- Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C- Safety Glasses, Gloves, Synthetic Apron D- Face Shield, Gloves, Synthetic Apron E- Safety Glasses, Gloves, Dust Respirator F- Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G- Safety Glasses, Gloves, Vapor Respirator H- Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I- Safety Glasses, Gloves, Dust and Vapor Respirator J- Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K- Air Line Hood or Mask, Gloves, Full Suit, Boots X- Consult your supervisor for special handling directions !~ ~ ~ 1~ ~ Marathon Oil Company Well Name: KBU 12-5 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8722 907 252-4218 MI SWACO Oliver Amend Field Engineer 907 283-0895 907 590-3636 MI SWACO (home) Locke Rooney Field Engineer lrooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) John Nicholson / Dan Drilling Foremen alaska drilling@marathon 907 283-1312 Byrd oil.com Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~ nsniar~ c~nm ~ ~~ ~ e+%+!.~:?ee~u~~:~r:~ucxsi~.t-m,~ ~_,~ . ~:::> .. ~,~:: . ;,~; . ...:,., .,:.. _ _ ~ i ~~'000 i 26 154 7u' ~;p4 1 20 389 5~: 0 18 3484u' ~ ~ ~`~2.A~(SI~I'~"~L~I. I.E'~"~'EI$ C$~~CKI,IS'~ `VEI.L ~ANtE J~,~~ ~v7 c~ PTD# a?O~d~~ / Developmeat Service Exploratory Stratigraph~c ~'est Yon-Conventional Wetl Circle 4ppropriate Letter / Paragraphs to be Included in Transmitta! Letter ~ ' CE[ECK I ADD-ONS , ! TEXT FOR APPROVAL LETTER ,' VVHAT ~ (OPTIONS) ! ~ APPLIES ~ ! ~ ~ ; I MliLTI LATERAL ~ T'he permit is for a new we[Ibore segment of existing i ~ ~ ~ well i ~(If last two digits in ~ permit ~Io. , AP[ No. ~0- - - ~ i i APi number are ; , ; between 60-69) Production should continue to be repoRed as a function of the ~ ' j ~ original API number stated above. ; ~ , ~ ~ PILOT F[OLE i ~ i[n accordance with 20 A..4C 2~.00~(~, all records, data and logs ; i ; ; acquired for the pilot hole must be c(early differentiated in both ~ I i ; we(1 name ( PF-n and API number ~ j ~ '(50- - -_~ from records, data and lo~s ~ ' ~ ~ ~ acquired for we(1 ~ i ~ SPACING The permit is approved subject to full compliance with 20 AAC ~ ~ ' EXCEPTION ~ 2~A». Approval to perforate and produce / iniect is contingent ~ i ; I upon issuance of a conservation order approving a spacing ~ ; i l exception. assumes the ~ ; i ~i liability of any protest to the spacing exception that may occur. l ' ;~ DRY D[TCH y ( Al( dry ditch samp(e sets submitted to the Commission must be in ; i i SA!V[PLE I no oreater thart 30' sample intervals from below the permafrost or ; ~ ! I from where samples are first caught and 10' sample intervals j ' ; ; ~ through target zones. ; ; ~ N i l C ~ Please note the fo(lowing specia! condition of this permir: ~ ; ; on- onvent ona ~ i production or production testing of coal bed methane is not allowed ~ i I~' z~~ ; for (name of wetl) until after (Companv Iv`ame) has desi~ed and ! ~ ' imp[emented a water welI testing program to provide basetine data ~ ~ j ! on water quality and quantity. (Company Name) must contact the ~ ~ Commission to obtain advance approval of such water well testing ! I I ~ D[OEr3[ri. ~ Rev: l!2~i06 C:' j ody ~ transmi ttal_checlcl i st ~ ~ ~^ ~ ~ , , , , , , ~ m d o a , , , , , , ~ , ! , , ~ ~ ~ ~ ~ ~ ~~ ~~ ~ , ~~ ~~ ~~ ~ ~ ~~ ~~ , ~~ ~ ~~ _ , ~ ~~ , ~ ~~ ~ ~~ ~~ ~~ ~~ ~ ~ ~ ~ Q ~ ~ , , , ' , , ~ , , , , , , ~ g , , a , ~ ~ , ~ ~ ~ ~ ~ ~ , ~ ~ , ~ ~ ~ N~ ~ ~ ~ ~ ~ ~ ~ ~ N~ ~ ~ ~ ~ ~ ~ ~ , , ~ ~ ~ ~ ~~ ~ ~ ~ ~ , ~ , , ~ ~ ~ ~ , ~ ~ ~ ~~~ , , ~ , N~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . ~ Oj , , , ~ 3 , ~ ~ ~~ ~~ . ~~ ~ ~~ ~~ ~~ , ~~ ~~ , ~~ ~ ~ i V~ ~ ~ ~ o , ~ o ~ ~ ~ ~ ~ ~ ~ _ , , °~' ~ ~ , w u~ , , ~ ~ , ~a co ~, O , ° E m , , , ~ , ~ , x a a , , o> 'a~ a o , ; , , I ~ m , 3 ~ , a , . , I ~ o ~ a, a ~, ~Q j ~ ~ ~ , ~ , ~ , ~ , , , ~ ~ p~ o ~ ~ ~~~ ~~, ~ E~ ~ o, ~ ~ o ~ ~ ~ ~ ~ ~ , o , , , , , ~ , , ~ 3 ~~ ~ M; { ~ ~ ~ ~ ~ ~ ~ , , ~ c' ~~ ~ ~ ~ - ~ Q~ iv' ~ U c ~ (6~ ~ T , ~ ~ ~ ~ ~ ~ ~ , , ~ , ~ ~ , ~ ~ ~ , , ~ ~ ,~~ ~ ~ ~ ~ ~ L~ ~ a~ ~ ~~ , ~ ~ ~ ~ ~ ~ 'C ~ ~ ~ ~ , ~ , ~ ~ ~ ~ , , ~ ~ ~ ~ ~ , ~ ~ ~ ~ , ~ . N~ ~ ~ ~ ~~ ~ N~ ~ p, ~ ~ , N~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ , ~ , ~ ~ ~ , , ~ ~ ~ . , , , ~ , ~ , , , ~ , , ~ ~ ~ ~ , ~~ ~ " ~ ~ ~ ~ ~ C~ ~ N~ ~ ~ ~ G ~ ~ ~ (6 ~ ~ ~ ~ ~ , ~ w ~ G ~ O~ ~ , , , ~ ~ ~ ~ ~ ~ , ~ ~ ~ , . , , ~ , , ~ ~ , a~ ~ ~ . ~ {y , ~ ~ y~ ~ ~ V~ ~ ~ , ~ LL7 ~ ~ ~ ~ ~ ~ ~ , ~ ~ ~ ~ , ~ ~ ~ . . , , ~ . , ~ , . , ~ . , ~ . ~~ ~ ,~~ ~, ~ ~ ~ ~ ~.. ~ 4 ~~~ ~ U~ ~ tD~ ~ O. , ~ O~ ~, ~fY~ , ~ ~~ ~ ~~ ~ ~ ~ ~ ~ ~ ~, ~ ~ ~ ~ ~ ~ ~ ~ ~. , ~ , ~ . . ~ ~ , ~ ~ ~ , N ~ ~L~ p) ~, C~ M ~ N, , M, , ~ fl' , ~ , , Z , ~ ~ ~ ~ ~ , . , ~ ~ . . ~ ~ ,, . fC~ , , ~ ~ N~ ~ ~~ ~ 3~ , , , y ~ . . , ~ Q ~ ~ , ~ , , ~ . , , ~ . . , ~ , .-~ ~ Q ~ ~ ~ ~~ ~>, ~ , , y~ ~. ~ ~ ~ °! ~ pp ~ , ~ ~ ~ , ~ ~ , . , , ~ j~ ~ ~ ~ o ~ ~' F- ' Q 0 ' a J ~ ~ ~ Q~ ~ ~ , , ~p~ ~p~ , p~ , ~ ~ ~ , ~ ~ ~ M~ ~ W [0 ~ ~ ~ Q~ , p„ ~ ~ ~ , , ~ ~ ~ ~ ~ ~ ~ ~ ,~ ~ , ~ ~ , ~ ~ fl. , ~ , , ~ ~ ~ ~ ~ ~ , ~ ~ N Q ~ N ~ , ~ O1 ~ ~ ~, , ~ ~ ~ , ~ ~ ~ , ~\ , ~ ~ ~ ~ ~ ~ , ~~ ~~ , O ~ E~ ~ w~ ~ d , ~ ~ ~ ~~ ~~ Z W pp ~ ~ ~ ~~ ~ ~ ~ ~ ~ , ~ ~ ~ ~ ~ ~ V ~ ~ ~ ~ . .. ~ y~ , p~ ~ a~ , o ~ , ~ ~ ~ ~ , ~ ~ M Y ip ~ m, , , ~ , u~i~ , '~, ~ , '~ , ~ , r°i , a~i , ~ r' ~ ~ , , , , ~ ~ ~ ~ ~ , ~ 3, ~ ~ , ~, ~ C~ a 3 ~ ~ ~ ~ ~ ~ ~ N E O ~ ~ ~ ~ G , o ~ , , ~ ~ ~ ~ ~ ~ , ~ ~ , , .N ~ ~ a ~, ~~ , l0~ , , n , O , I ~ , Y ~ f6 f0 Z ~ ~ , T ~ ~,~ ~ , , , , ~ ~ ~ ~ ~ , U~ ~ U , p_ , T , ~, ,,d.~ , _~ , N~ . ~ ~ , ~~ , ~ ~ ~ ~ a~ o ~ ~ ; Q ~ ~ ~ ~ ~ :; ~ ~ ;~ ~ ,t ~ ~ , ~ 6 ~ ~ , ~~ ,• , ~ ,•~' ,°-' x ~ r' ~ ~ ~ ~ , ~ ~ a~ ~ m ~ w ~ ~ , , , ~q ~ ` p,, ' g ~ _ ~, a , , , , , , W ; ~ ; ' ; ' ; ~ ; 1 `` o ~ , , , I , , O ~ ~ N~ m ~, N~ a~, ~, NI ~~ a~' a~ >-, ~-~ N~ y~ ~~ ~~ N, a~ m, a~ a~ a~, >-~ >-~ ~, ~, ~- N' N~ y~ a~f m a~ ~-, ~-~ ~, N a~ ~ . ~ , o; Q; Q; Q Z, Z, Z, Z, N~ N~ y~ a~ m, m ~. ~, ~, U1~ a~ ~, y~ a~, ~, N~ N~ a~ a~, >-~ ~-, . h~ d; a~1 Z ~, y~ f/~ N~ N~ N~ a~, a~ m, a~, a~, ~'. ~-~ Y, >-~ ~', y~ ~ ~ a~, o Q ~ ~', Z~ Z, ~ f~~~ a~, ~-, ~ Q, Z, N~ Q Q°~ Z, Z, ~', ` ~ I ~ ~ V , ~ ~ ~ ~ o~ c , ~ , , , , , ~~ , , , , E , 3, , , , , , , , , , - , , , ~ ~ ~, , , , , , , , , ~ , ~, ~ ~, , , , , , , , , ~ , ~ ~ ~ ~ , , ~ , , , , , , , ~ a i ~, , N , , , ~ , ~ ~ ~ , ~ ~ O~ , o, ~ ~ ~ ~ ~ , ~ ~ , ~ ~ _' , ~ ,,, ~, ~, , ~ ~ , ~ ~~ `~ , °~ c L ° I E a o . , ~~ O~ C~ ~ , , . ~ T O `r ~ , , , ~ ~ ~ , , . , ~ ~ , a~, m, ~ ~~ 3~ , ~ , ~ ~ . ~ , , , , ~ N~ , 3, ~ ~ , ~ o ~ ~ N M O ~ . ~ . ~~ ~ U ~ ~ ~ ~ . ~ ~ ~ ~~ ~ ~ ~ ~ , ~ ~ . ~ , ~ ' ' O~ ~~ L~ ~~ , ~ , ~ ~ ~ ~ N~ ~ , ~ , ~~ , , ~ N~ ~ ; ~ ~ O ~ ~ . ~ ~ ~ ~ ~ , , ~ ~ ~ ~~ ~~ ~, Q' ~ N, ~ y, O ~ N . ~ p~ ~ ~ y U ~ ~ , , ~ ~ ~ ~ ~~ ~ , ~~~ , ~~ ~ ~ ~ O~ , , ~ ~ ~ ~ O~ ~ Ul~ , ~ ~ Q ^ J W ~ ~ ~ ~ ~ ~ ~ ~ C~ ~ ~ , ~ ~ ~ ~ ~ ~ ~ ~ j, ~ ~ O~ ~ N~ G ~ C~ ~ , ~ , ~ ~~ , ~ ~ ~ y~ ~ Q ~ N~ ~ ~ (6~ ~ V~ : C~ ~ ~ ~„ ~ ~ ~ J, ~ ~ ~ ~~ ~ , ~ ~ ~ u~ ~ ~ ~ ~ ~\ (1 m ~ ~ ~ ~ O ~ ~ ~ , ~ ~ ~~ Q. 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