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Home My WebLink About206-004THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY August 21, 2019 Mr. Wyn Menefee Executive Director Mental Health Trust Land Office 2600 Cordova Street, Suite 100 Anchorage, AK 99503 RE: Docket Number OTH-18-031 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 wv, v.aogcc.alaska.gov Notice of Violation -Failure to Plug and Abandon Northern Dancer 1 (PTD 206-004); Dear Mr. Menefee: The Mental Health Trust Land Office (MHT) has requested that the Alaska Oil and Gas Conservation Commission (AOGCC) release the $100,000 bond held to assure the proper plugging and abandonment of the Northern Dancer 1 well on MHT's land. The bond was posted by Storm Cat Energy Corporation (Storm Cat), the designated operator for the Northern Dancer 1 well. MHT, as landowner, became liable for the cost of plugging and abandoning Norther Dancer 1 when Storm Cat left the state and became insolvent. MHT has plugged and abandoned Northern Dancer 1 in compliance with AOGCC regulations. The Northern Dancer 1 surety bond was issued by RLI Insurance Company of Denver, Colorado. In order to obtain these funds, the AOGCC must first successfully make a claim against that bond. Since Storm Cat did not comply with its regulatory obligation to properly plug and abandon the Northern Dancer 1 well, the AOGCC will initiate a claim on the bond. The AOGCC requests that MHT provide an invoice that shows the total cost of the Northern Dancer 1 P&A for the record. If you have questions or need additional information, please contact Ms. Jody Colombie, at 907- 793-1221 or Jody. ColombienAlaska.gov. Sincerely, Jessie L. Chmielowski Commissioner August 15, 2019 Jessie Chmielowski, Commissioner Alaska Oil and Gas Conservation Commission 333 W.7' Avenue Anchorage, Alaska 99501-3572 Re: Docket Number OTH-18-031 n i I*[ I -)I Land Office -,600 Cordova Street, Suite too Anchorage, AK 99503 Tel 907-269 8658 www. trustlandoffice.com R hzkO MIZU AUG 1 50 2p19 Notice of Violation- Failure to Plug and Abandon Northern Dancer 1 (PTD 206-004) Dear Commissioner: Pursuant to the above referenced notice of violation, the Trust Land Office (TLO), on behalf of the Alaska Mental Health Trust Authority, initiated plugging and abandonment operations during the week of July 29, 2019 through its contractor, ASRC Energy Services. The work was completed, after inspection and approval by Alaska Oil and Gas Commission (AOGCC) Representative Lou Laubenstein, on August 8, 2019. Required documentation of the completed operations was filed in the Commission offices on August 15, 2019. Based on conversations with AOGCC personnel, it is the understanding of the TLO that the Commission has in place a $100,000 bond, the purpose of which is to contribute toward costs associated with the plugging and abandoning of this well according to Commission standards. The TLO incurred costs of $118, 900 to ensure that this was done. The TLO requests reimbursement of the amount of the bond to contribute toward the costs incurred for this operation. Sincerely' Wy2enefee Executive Director t°¢gin STATE OF ALASKA AUG 5' ?r,9 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND 1a. Well Status: oil 11 Gas❑ SPLUG❑ Other ❑ Abandoned 71 . Suspended❑ 20AAC 25105 20AAC 25.110 GINJ ❑ WINJ❑ WAGE] WDSPL❑ No. of Completions: lb. Well Class: Development ❑ Exploratory Service ❑ Stratigraphic Test ❑ 2. Operator Name: Trust Land Office 6. Date Comp., Susp., or Aband.: 8/8/2019 - 14. Permit to Drill Number / Sundry: - 206-004 / 319-325 3. Address: 2600 Cordova Street, Suite 100, Anchorage, AK 99503 7. Date Spudded: 2/14/2006 15. API Number: 50-009-20031-00-00 4a. Location of Well (Governmental Section): Surface: 2160' FSL, 2504' FWL, S 1 T17N R4W, SM Top of Productive Interval: 2160' FSL, 2504' FWL, S 1 T17N R4W, SM Total Depth: 2160' FSL, 2504' FWL, S 1 T17N R4W, SM 8. Date TO Reached: 3/14/2006 16. Well Name and Number: Northern Dancer#1 9. Ref Elevations: KJ 20.8 GL:Z1, F: $-. 17. Field / Pool(s): N/A 10. Plug Back Depth MD/TVD: Surface 18. Property Designation: MHT 9300054 4b. Location of Well (Stale Base Plane Coordinates, NAD 27): Surface: x- 514405.96 y- 2773699.1 Zone- 4 TPI: x- 514405.96 y- 2773699.1 Zone- 4 Total Depth: x- 514405.96 y- 2773699.1 Zone- 4 11. Total Depth MD/TVD: - 6233' MD/TVD 19. DNR Approval Number: N/A 12. SSSV Depth MD/TVD: N/A 20. Thickness of Permafrost MD/TVD: N/A 5. Directional or Inclination Survey: Yes ❑ (attached) No 0 Submit electronic and printed information per 20 AAC 25.050 13. Water Depth, if Offshore: N/A (ft MSL 21. Re-drill/lateral Top Window MD/TVD: I N/A 22. Logs Obtained: List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Types of logs to be listed include, but are not limited to: mud log, spontaneous potential, gamma ray, caliper, resistivity, porosity, magnetic resonance, dipmeter, formation tester, temperature, cement evaluation, casing collar locator, jewelry, and perforation record. Acronyms may be used. Attach a separate page if necessary 23. CASING, LINER AND CEMENTING RECORD CASING WT. PER SETTING DEPTH MD SETTING DEPTH TVDAMOUNT FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 18 surface 63' surface 63' driven N/A 13-3/8" 68# L80 surface 243' surface 243' 16" 225sks 15.8ppg Class G N/A 9-5/8" 40# HP110 surface 950' surface 950' 12-1/4" 141sx 12.8ppg, 145sx 15.8ppg N/A 5-1/2" 17# L80 surface 6192' surface 6192' 8-1/2" S1: 496sx 15.8ppg, S2: WA 2021bb1s 12.4ppg, 120 bbls 14.5ppg 24. Open to production or injection? Yes ❑ No p If Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number; Date Perfd): d 1- /TMJ D TE 5 V RIF EDDEPTH 25. TUBING RECORD SIZE DEPTH SET (MD) 1PACKER SET (MD/TVD) none 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes ❑ No O Per 20 AAC 25.283 (i)(2) attach electronic and printed information INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27._--+/+��-L._ PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): Dale of Test: Hours Tested: Production for Test Period -11- Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Press. Casing Press: I Calculated 24 -Hour Rate Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Form 10-407 Revised 5/2017�Z3 l�CONTINUED ON PAGERBDMS&f/ Submi/AUG 2 p 2plg Itl RIGINIAL only ,�o''lf 1L" ' q G 28. CORE DATA Conventional Core(s): Yes ❑ No ❑ Sidewall Cores: Yes ❑ No ❑ If Yes, list formations and intervals cored (MD/TVD, Fromrro), and summarize lithology and presence of oil, gas or water (submit separate pages with this form, if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No ❑ If yes, list intervals and formations tested, briefly summarizing test results. Permafrost - Top Permafrost - Base Attach separate pages to this form, if needed, and submit detailed test Top of Productive Interval information, including reports, per 20 AAC 25.071. Formation at total depth: 31. List of Attachments: Summary of daily operations, wellbore schematic. Photos of plate, cement to surface, and dirt mound. Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Authorized Name: Mike Franger Contact Name: Amanda Dial Authorized Title: Trust Resource Manager Contact Email: adial@asrcenergy.com Authorized Contact Phone: 907-382-0124 Signature: Date:filiv &6 e f O AL INSTIRILIC140INS General: This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item 1 a: 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 lb: Well Class - Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Item 4b: TPI (Top of Producing Interval). Item 9: The Kelly Bushing, Ground Level, and Base Flange 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 15: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 19: Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY-123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, fluid saturation, fluid composition, fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Item 30: 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. Item 31: Pursuant to 20 AAC 25.070, attach to this form: well schematic diagram, summary of daily well operations, directional or inclination survey, and other tests as required including, but not limited to: core analysis, paleontological report, production or well test results. Form 10-407 Revised 512017 Submit ORIGINAL Only August 15, 2019 Commissioner Jessie Chmielowski Alaska Oil and Gas Conservation Commission 333 West 7t' Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report Trust Land Office: Northern Dancer #1 (PTD 206-004) API: 50-009-20031-00-00 Dear Commissioner, n Laud Office 2600 Cordova Street, Suite ioo Anchorage, AK 99503 Tel 907.269.8658 w .trustlandofficacom E AUG 15 2019 !i° o��e� Trust Land Office (TLO) hereby submits a Well Completion Report for the permanent abandonment of Northern Dancer #1, located on MHT 9300054. The well was abandoned per Approved Sundry 319-325. Pertinent information attached to this application includes the following: 1. Form 10-407 Well Completion Report 2. Daily Summaries 3. Final Wellbore Schematic 4. Photo of Cement to Surface 5. Photo of P&A Marker Plate 6. Photo of Plate welded in place 7. Photo of mound If you have any questions or require additional information, please contact myself at 907-269- 8657 or Amanda Dial at 907-382-0124. Sincerely, Mike Franger Senior Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Northern Dancer #1 API: 50-009-20031-00-00 PTD#:206-004 Date Ac![yLty 1 Aug 2019 Clear pad access of overgrowth. Build platform around wellhead. Arrange equipment and Eline unit. Confirm 0 psi on 5-1/2" casing and IA. Remove tubing head adapter flange and M/U 11" 5M DSA flange with XO. M/U pump in sub. Secure location for night. 2 Aug 2019 R/U Eline. RIH w/4.5" GR to 4364' MD, POH. M/U and RIH w/ 5.5" CIBP and set at 1070' MD. POH w/setting tool. Dump bail 5.5 bbls of 17.8ppg Type 1/II cement on i top of CIBP. L/D bailer. M/U pump in sub. Fluid pack. Secure location for night. 3 Aug 2019 R/U Eline. P/U 4.5" GR and tag TOC at 844' MD. R/D Eline. R/U for pressure test. Pressure test 5-1/2" casing against CIBP/cement to 2500 psi for 30 mins, chart same —good. Tag and test witnessed by AOGCC Rep, Lou Laubenstein. R/D test equipment. R/U Eline. M/U and RIH w/ 5.5" CIBP and set at 170' MD. POH w/setting tool. Dump bail 3.5 bbls of 18.3ppg Type 1/II cement on top of CIBP bringing cement to surface. L/D dump bailer. R/D Eline. Confirm TOC in 13-3/8" x 18" annulus at 18ft below top. Fill annulus with 2.3 bbls of 18.3ppg Type 1/II cement. R/D cement equipment. Remove 11" SM DSA flange with XO. Secure location for night. 4 - 6 Aug 2019 No well operations. 7 Aug 2019 Excavate around cellar. Pull cellar. Excavate around well and grade access. Remove wellhead. Mix 16sx of cement and bring cement to surface in 9-5/8" x 5- 1/2" annulus. Dress top of casing in prep for welding. Secure location for night. 8 Aug 2019 Confirm cement to surface in all annuli. Final cut 40" below native soil. Witness of cement to surface, P&A plate, and final cut depth by AOGCC Rep, Lou Laubenstein. Weld 18" OD P&A name plate onto 18" outer casing. Backfill hole. Mound fill. Demob equipment. P&A Complete. M1 9 Northern Dancer #1 Aauasehe 20 . �.:... Actual P&A Schematic AR: 50 -009 -20031 -OD -00 ce nam t. 51 dace 5 abls cement CIBP @ 170' MD✓TVD -y`�- CIBP @ 1070' MDrIVD 1-8 ppg KWF -[ A,;` MD Trxh TD @ 6233' MD 3 I18" SWctural casareg @ 63' MDNO 16" hole 13-36- W L-80 @ 243' MDND `2-14" Hde t+5i8" 40N HCP -110 Casag @ 950' MDN'D Stage , 00i @ 48"77' MD 100 bbis of cement to surface on 2nd stage — ".- 7AM ACP Packer @ 4754' MD =: successfully after 1st stage cement 8-1R" Hde 5-7/7' 17# L80 Cashg @ 6192' MDRVD If., Wr, 5� Northern Dancer #1 (PTD 206-004) — Cement to surface in all annuli. Northern Dancer #1 (PTD 206-004) — P&A Plate welded in place. J. Northern Dancer #1 (PTD 206-004) — Backfill and mound. NOTE: L 00OfmINATE6 dtOtH AIS NAD 93 ALASKA BTAT6 PI.At ZOM 4 ]EASED ON F19115 CPB VALM5 ]. GEOGRAPHIC COOMNATES A1% NAD 63, 3. ALL D16tA M* ARE Qd M N LLS. SUEVET FEET. 4. VFRIW- DARtf IS BAAGO W F w NGTIGN COWER MAW EL+ 206"T"VOW NORTHERN DANCER No.) LorATED ]]6T wpm FmcH RIE 60uTH Le& CP SECTION I AND T6Ot I"? MMCH 1Ie3 EAST LINE OF ""ON L 7 tt N R A t4 =4t 0 MERIDIAN AT LAT, srM'1&4I064N Ld" 146', M60SM74 Aw rom 4 M."u646.12 E.1"40e4AS (NAD A31 GR<RISJ ELEVATION m MM' 3 IG 2 IS /! 14 T" a SECTION 35 I SECTION 36 N 89.45' W 526BA2'(cALC) J a v O o SECTION 1 o TOWNSHIP 17 NORTH, RANGE 4 WESL S.M. TRACr 8 NORTHERN U SECTION 2 DANCER No.l-'., .:r....._....,_ ... ... ...._._..._.......... - ........ _��..... s i WesT 5 ' �TIaN i III 2 SECTION iz J`CF LEGEND: I'1mAsuF*v DAtA 12.5 F£CORP DATA N 90`00'00" w •' 49 "",?-��`I��" MBE �Te L Mcude AT TNM OF THE SL"WM No.8f06-5 ASBUILT SURVEY CERTIFICATE: HAY PE CMjDQEP 6r E ,.�� Jo,,,l.,.u,,••" -q SIOd I HEREBY CEktIF''Y tFa t pR �p�IEOFffi LNDER MY bIREGT SUPERv1910N, NAvE M ASBUILT SURVEY GF ldOR1�F1EFE3 pMJCER Mai tRAct I% SECTIbN 1 tOLJFiIH1p h NDRttl. RAWsE-4 WEbt, W -t AND THE INFORMATION t-WeENTED ON TR5 ORALIM 16 TRUE 4 CORRECT TO Tt`e I NOR 7 SEC 30 SEC 6 7C AI m5T m o i GL c�JAS 'vT LV i :2 ,� MEMORANDUM TO: Jim Regg q/Yo P. I. Supervisor State of Alaska Alaska Oil and Gas Conservation Commission DATE: 8/8/19 FROM: Lou Laubenstein SUBJECT: Surface Abandonment Petroleum Inspector Northern Dancer #1 Mental HealthTrust Land Office PTD 2060040; Sundry 319-325 8/8/19: 1 traveled to the location of the Norther Dancer #1 well for inspection of the surface abandonment. a location clearance after the wellhead had been cutoff and cemented to surface. I arrived on location and met up with Amanda Dial (ASRC) who was overseeing the project for the Mental Health Trust Land Office. I witnessed hard cement to surface and confirmed the wellhead was cut off below the minimum required 3 -foot below original ground level. The marker plate had all the appropriate information on it and was easily able to be read. The area was free of any signs of spills of any kind. Attachments: Photos (4) ' 2019-0808_Surface _Abandon _NDancer-1 11.docx Page 1 of 3 O a O O t0 O N H a �Q C w l6 C Q � L 7 d L J J O � Z O I i C U d N C cU OU 'a (D r -o m Q T r lV0 o O 0 N 3 L W fn d 00 k U O S rye I r �1, IT �P' N I ViC I 41 � . W MEMORANDUM TO: Jim Regg IAl P.I. Supervisor 1 FROM: Lou Laubenstein Petroleum Inspector Section: 1 Township: Drilling Rig: N/A Rig Elevation: Operator Rep: Amanda Dial Casing/Tubing Data (depths are MD): Conductor: 13-3/8 O.D. Shoe@ Surface: 9-5/8 O.D. Shoe@ Intermediate: Cut@ O.D. Shoe@ Production: 5-1/2 O.D. Shoe@ Liner: Tbg O.D. Shoe@ Tubing: n/a O.D. Tail@ Plugging Data: Test Data: State of Alaska Alaska Oil and Gas Conservation Commission 17N DATE: August 3, 2019 SUBJECT: Plug Verification Norther Dancer #1 Mental Health Trust Land Office PTD 2060040; Sundry 319-325 ' Range: 4W - Meridian: Seward - Total Depth: 6233 ft MD , Lease No.: MHT 9300054 - Suspend: 243 - Feet 950 - Feet Feet 6192 - Feet Feet n/a Feet P&A: Yes ' TvDe Pluq Founded on Casing Removal: Csg Cut@ n/a Feet Csg Cut@ n/a Feet Csg Cut@ Feet Csg Cut@ n/a Feet Csg Cut@ Feet Tbg Cut@ Feet TvDe Pluq Founded on Depth Btm Depth To MW Above vended Fullbore Bridge plug ' 950 ft MD 844 ft MD - Wireline tag OA 0 0 0 Initial 15 min 3n min 45 min Result Tubing n/a n/a n/a 5.5 csg 2650 - 2600 2580 - P OA 0 0 0 Remarks: I traveled to location to witness the tag and pressure test of a cement plug for the P&A process. E -Line was on location for the tag with a tool string weight of 2001b. I witnessed two tags that showed the top of the cement plug @ 844 ft MD. The pressure 4,-- test /test was performed with passing results and recorded on a chart. Attachments: none rev. 11-28-18 2019-0803_Plug_Verification_NDancer-1_II THE STATE OIALASKA GOVERNOR MIKE DUNLEAVY Mike Franger Senior Resource Manager 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Re: Exploratory Field, Exploratory Oil Pool, Northern Dancer #1 Permit to Drill Number: 206-004 Sundry Number: 319-325 Dear Mr. Franger: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www. a ogc c. a laska. go v Enclosed is the approved application for the sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Jr,1.mlelowski Commissioner DATED this IT day of July, 2019. RBDMS�JUL 18 2019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 2n AA(' 9A 9An RECEIVED JU 08 2019 AOGC 1. Type of Request: Abandon O • Plug Perforations ❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Trust Land Office Exploratory 21 Development ❑ Stratigraphic ❑ Service ❑ 206-004 3. Address: 6. API Number: 2600 Cordova Street, Suite 100, Anchorage, AK, 99503 50-009-20031-00-00 ' 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No ❑ Northern Dancer #1 ' 9. Property Designation (Lease Number): 10. Field/Pool(s): MHT 9300054 N/A 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 6233' 6233' • 4702' 4702' 0 psi N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor Surface 243' 13-3/8" 243' 243' 5040 psi 2280 psi Intermediate 950' 9-5/8" 950' 950' 5750 psi 4230 psi Production 6192' 5-1/2" 6192' 6192' 7740 psi 6390 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): None None None N/A N/A Packers and SSSV Type: WA Packers and SSSV MD (ft) and TVD (ft): N/A 12. Attachments: Proposal Summary O Wellbore schematic p 13. Well Class after proposed work: Detailed Operations Program 21 BOP Sketch ❑ Exploratory 0 ' Stratigraphic ❑ Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 22 -Jul -19 OIL ❑ WINJ ❑ WDSPL ❑❑ Suspended GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned o. 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. w I "k � , „l �/•�� /�� Authorized Name: Mike Franger 1 Contact Name: Amanda Dial Authorized Title: Senior Resource Manager Contact Email: adial@asrcenergy.com —�7 Contact Phone: 907-382-0124 Authorized Signature: Date: 1 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: — n '/✓` / Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Telt W_ LLocation Clearance CYC Other: �Ro P/• NACU M?L•Yl.� QS dJ �sCP'i 06' Post Initial Injection MIT Req'd? Yes ❑ No ❑ RBDMSd" 18 2019 _ y iUL Spacing Exception Required? Yes ❑ No [� Subsequent Form Required: / �� T 1 / APPROVED BY I Approved by: COMMISSIONER . THE COMMISSION Date: G I N A L ---� 78./, June 281h, 2019 Commissioner Jessie Chmielowski Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Trust Land Office: Northern Dancer#1 (PTD 206-004) API: 50-009-20031-00-00 Dear Commissioner, 67) (`? � Land Office 2600 Cordova Street, Suite ioo Anchorage, AK 99503 Tel 907.269.8658 www. trustlandoffice.com Trust Land Office (TLO) hereby submits an Application for Sundry Approval for the permanent abandonment of Northern Dancer #1, located on MHT 9300054. The well was originally drilled in 2006 and considered suspended by the AOGCC in 2014. The well has never been completed and Trust Land Office has determined that the well does not have an economically producible formation. Therefore, TLO is requesting approval to permanently abandon the well, completing the operations rigless. Pertinent information attached to this application includes the following: 1. Form 10-403 Application for Sundry Approval — 2 copies 2. Abandonment Procedure 3. Current Wellbore Schematic 4. Proposed Abandonment Wellbore Schematic If you have any questions or require additional information, please contact myself at 907-269- 8657 or Amanda Dial at 907-382-0124. Sincerely, Mike Franger V�i4rY fR �V�dINL� Senior Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Northern Dancer #1 Well Summary Current Status: Suspended — no perforations Scope of Work: • Check casing, IA, and OA pressures. Verify well is dead. • Pressure test 5-1/2" casing to 2500 psi for 30 mins and chart same. • Rig up Eline. • Set CIBP at 1050' MD. • Dump bail 200'+ of cement on top of CIBP. • Set CIBP at 150' MD. • Dump bail 150' of cement on top of CIBP. • WOC. • Remove tree. • Recover cellar. • Cut casing 3' below original ground level. Weld on ID CAP. • Backfill pad leaving 3ft mound. General Well Information: Reservoir Pressure / TVD: MASP: Wellhead Type/Pressure Rating: BOP Configuration: Well Type: Estimated Start Date: No perforations 0 psi as of August 17, 2018 Vetco Grey — 5000 psi — Wellhead (no tree) N/A Gas well - Not completed July 22"d, 2019 2 15632 / 19-073 June 2019 VLO 260o Cordova Street, Suite loo I Anchorage, AK 99503 1 Tel 907.269.8658 1 www.trustlandoffice.corn Northern Dancer #1 Abandonment Program 1) Give 48 hours' notice to AOGCC for plugging operations and MIT. 2) Check casing, IA, and OA pressures. 3) Pressure test 5-1/2" casing to 2500 psi for 30 minutes and chart same. 4) Rig up Eline. 5) RIH and set 5-1/2" CIBP at 1050' MD, per AOGCC 20 AAC 25.112 (c)(3)(B). 6) RIH with 4" dump bailer and dump bail 4.7bbls (200'+) of cement on top of CIBP. / 7) RIH and set 5-1/2" CIBP at 150' MD, per AOGCC 20 AAC 25.112 (d)(1). 8) RIH with 4" dump bailer and dump bail 3.5 bbls (150') of cement on top of CIBP. 9) Rig down Eline. 10) WOC. 11) Dig out to 7' below original ground level and remove cellar. 12) Notify AOGCC inspector to witness casing cut off. 13) Cut off all casing strings (13-3/8", 9-5/8", and 5-1/2") at least 3' below original ground level. 14) Top off all annular space with cement if it is not to surface in all casing strings. a. Take pictures of cement at surface in all strings. 15) Weld a 13-3/8" cap of steel onto the casing stub with required well identification information bead -welded to the marker plate. (Regulation 20 AAC 25.120) TRUST LAND OFFICE PTD 206-004 Northern Dancer #1 50-009-20031-00-00 16) Take pictures of casing stubs with cement, welded cap, and final after grading pad. Submit to town for inclusion in final report. 17) Back fill cellar hole and mound same. Variance request for Step 8, to dump bail cement on top of CIBP at 150' instead of using the displacement method. AOGCC regulation 20 AAC 25.112 (d)(1) specifies using the displacement method to place cement plug at least 150 feet in length, with top of cement no more than 5' below original ground level, within the smallest diameter casing string. 2i.:5,%irnveylol�.CCo�4aGCL fo W711K�SS�af 6%� r� 3 15632 / 19-073 June 2019 V1.0 2600 Cordova Street, Suite loo I Anchorage, AK 99503 1 Tel 907.269.8658 1 www.trustlandoffice.com As of: 3/14/2006 Northern Dancer #1PTD: 206-004 Land Office API: 50-009-20031-00-00 Current Schematic Fresh Water 16" hole Conductor 13-3/8" 68# L-80 @ 243' MDlrVD -- 12-1/4" Hole 9-5/8" 40# HCP -110 Casing @ 950' MD/TVD Top Job required to bring cement to surface Stage Tool @ 4671' MD 100 bbls of cement to surface on 2nd stage ECP TAM ACP Packer @ 4754' MD Inflated successfully after 1st stage cement 10.8 ppg KWF d 8-1/2" Hole t PBTD @ 6097' MD Shoe Track. -'v 5-1/2" 17# L80 Casing @ 6192' MD/TVD TD @ 6233' MD Northern Dancer #1 Planned V1.0 PTD: 206-004 Land Office Proposed P&A Schematic API: 50-009-20031-00-00 TD @ 6233' MD 16" hole Set CIBP @ 150' MD/TVD Conductor 13-3/8" 68# L-80 @ 243' MD/fVD 12-1/4" Hole 9-5/&'40# HCP -110 Casing @ 950' MD/TVD Top Job required to bring cement to surface Set CIBP @ 1050' MD/TVD Stage Tool @ 4671' MD 100 bbls of cement to surface on 2nd stage ECP TAM ACP Packer @ 4754' MD Inflated successfully after 1st stage cement 8-1/2" Hole 5-1/2" 17# L80 Casing @ 6192' MD/fVD THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY February 7, 2019 CERTIFIED MAIL – RETURN RECEIPT REQUESTED 7015 0640 0003 5185 7110 Mr. Mike Franger Trust Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.00gcc.alaska.gov Re: Docket Number:OTH-18-031 Notice of Violation – Reconsideration Decision Failure to Plug and Abandon a Well Prior to Expiration of Owner's Rights in a Lease Northern Dancer 1 (PTD 206-004) Dear Mr. Franger: On February 1, 2005, the Mental Health Trust Land Office (MHT) approved Storm Cat Energy Corporation (SCEC) as the 100% working interest owner of MHT oil and gas lease 9300054 (MHT 9300054). SCEC drilled the Northern Dancer 1 exploration well on MHT 9300054 in early 2006 and suspended the well on March 18, 2006. On September 17, 2009, MHT extended the lease term to January 31, 2012. On July 18, 2013, lease MHT 9300054 expired. Northern Dancer 1 has never been properly plugged and abandoned. SCEC declared bankruptcy. As a result, the MHT—as land- owner for MHT 9300054—is responsible for plugging and abandonment of Northern Dancer 1. On May 4, 2018, the Alaska Oil and Gas Conservation Commission (AOGCC) issued a Notice of Violation (NOV) requiring MHT to submit an Application for Sundry Approvals (Sundry) for plugging and abandonment of Northern Dancer 1 within 30 days and to complete the plugging and abandonment operations proposed in that Sundry within 18 months. On May 24, 2018, MHT requested clarification from AOGCC regarding AOGCC's NOV and the Reconsideration and Appeal Notice attached to the NOV. On June 27, 2018, AOGCC re -issued the NOV accompanied by a Notice of Rights and Liabilities. On July 10, 2018, MHT requested an informal review with AOGCC regarding the NOV. The informal review was held on July 11, 2018. On August 2, 2018, MHT requested a public hearing to discuss relief from the submission of an Application for Sundry Approvals for plugging and abandonment of Northern Dancer 1. On October 17, 2018, the public hearing was held and MHT presented testimony. Docket Number: OTH-18-031 February 7, 2019 Page 2 of 2 Northern Dancer 1 was drilled and suspended in 2006 without testing. No further operations have been conducted. The well has been effectively abandoned for 12 years. The MHT lease containing the well expired in 2013. AOGCC regulations require all wells that have been permitted on a property under 20 AAC 25.005 must be properly abandoned before expiration of the owner's rights in that property. By May 1, 2020, MHT must either: 1) lease Northern Dancer 1 to a third party that establishes a separate bond dedicated to the plugging and abandonment of Northern Dancer 1, or 2) plug and abandon Northern Dancer 1 in compliance with the requirements of 20 AAC 25 Article 2. 4Sincerely, !/ / Cath. Foerster Commissioner AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No. OTH-18-031 ALASKA OIL AND GAS CONSERVATION COMMISSION In the Matter of the Request of the Trust ) Land Office for Reconsideration of Docket ) No. 18-031, Failure to Plug and Abandon ) Northern Dancer No. 1. ) t No.: OTH 18-031 ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska October 17, 2018 10:00 o'clock a.m. PUBLIC HEARING BEFORE: Hollis French Cathy Foerster Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Page 2 1 TABLE OF CONTENTS 2 Opening remarks by Chairman French 03 3 Remarks by Mr. Franger 05 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net F_C9IKQU 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 3 1 P R O C E E D I N G S 2 (On record - 10:00 a.m.) 3 CHAIRMAN FRENCH: Good morning. I'll call this 4 meeting to order. It's October 17, 2018, it's 10:00 5 o'clock in the morning. We are at 333 West Seventh 6 Avenue in Anchorage, Alaska. This is the Alaska Oil 7 and Gas Conservation Commission. To my right is 8 Commissioner Cathy Foerster, I'm Hollis French also a 9 Commissioner. 10 We're here today on docket number 0 like Oscar, 11 T -H 18-031, a motion for reconsideration for failure to 12 plug and abandon Northern Dancer number 1. The Trust 13 Land Office has requested this hearing and the AOGCC is 14 granting that request. 15 Computer Matrix will be recording the 16 proceedings. You can get a copy of the transcript from 17 Computer Matrix Reporting. 18 It appears that the Trust Land Office is here 19 ready to testify. Any other parties planning to 20 testify? 21 (No comments) 22 CHAIRMAN FRENCH: Commissioners may ask 23 questions during testimony, we may also take a recess 24 to consult with staff to determine whether additional 25 information or clarifying questions are necessary. If Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Arch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No. OTH-18-031 Page 4 1 a member of the audience has a question that he or she 2 feels should be asked please submit that question in 3 writing to Jody Colombie who's at the back of the room, 4 she will provide the question to us. The 5 Commissioners, if we feel that asking the question will 6 assist us in making our determinations, will ask it. 7 For those testifying please make sure that the 8 green light is on on your microphone when you begin 9 speaking and speak into that microphone so that the 10 audience and the court reporter can hear your 11 testimony. Remember to reference your slides if you 12 brought them so that someone reading the public record 13 can follow along. For example refer to slides by their 14 numbers if numbered or by the titles if not numbered. 15 Of course your testimony today has to be relevant to 16 the purposes of the AOGCC's statutory authority and 17 we'll ask you to keep your testimony focused in that 18 way. 19 Commissioner Foerster, do you have anything to 20 add before we get started? 21 COMMISSIONER FOERSTER: Nope. 22 CHAIRMAN FRENCH: If the witness will please 23 come forward I'll swear you in. Good morning. Just 24 hit that little button on the mic there. Is it lit up 25 green? Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 1 2 3 please. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-I8-031 Page 5 MR. FRANGER: Yes. CHAIRMAN FRENCH: Raise your right hand, (Oath administered) MR. FRANGER: I do. CHAIRMAN FRENCH: If -- please state your first and last name, your affiliation if any and whether you'd like to be recognized as an expert witness. MIKE FRANGER called as a witness on behalf of the Trust Land Office, testified as follows on: DIRECT EXAMINATION MR. FRANGER: My name's Mike Franger, I'm a senior resource manager with the Trust Land Office. I deal with oil and gas leasing and lease administration. I'm not an expert. CHAIRMAN FRENCH: Okay. You might want to pull that mic just a little closer to you, Mr. Franger. Thanks. 20 We received the letter that you brought with 21 you this morning and I know I read it and Commissioner 22 Foerster's read it as well. But the floor is yours to 23 make a presentation. Go ahead. 24 MR. FRANGER: Well, my plan was just to review 25 the submitted remarks. I simply want to read what I Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 6 1 said there so that I don't miss anything. 2 CHAIRMAN FRENCH: As you wish. 3 MR. FRANGER: Commissioners, the Trust Land 4 Office or the TLO manages land and resources owned by 5 the Alaska Mental Health Trust Authority or the Trust. 6 The Trust owns approximately 1 million acres of land 7 across the state of Alaska in a perpetual trust for its 8 beneficiaries for the sole purpose of generating 9 revenue from its land and resources to support mental 10 health programs in the state. Beneficiaries include 11 residents suffering from mental health illness, 12 developmental disabilities, chronic alcoholism, 13 traumatic brain injuries and Alzheimer's disease and 14 related dementia. 15 The Trust is a public corporation of the state 16 of Alaska within the Department of Revenue and the 17 Trust land is not managed -- commingled or managed with 18 other state land. By regulation Trust land must be 19 managed consistently with Trust responsibilities 20 accepted by the state under the Alaska Mental Health 21 Enabling Act which was federal legislation passed in 22 1956. This means that management shall be conducted 23 solely in the best interests of the Alaska Mental 24 Health Trust and its beneficiaries. 25 The TLO is a unit within the Department of Computer Matrix, LLC Phone: 907-243-0668 - 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 7 1 Natural Resources that was established pursuant to 2 provisions contained in House Bill 201 which was 3 enacted on June 23rd, 1994 and which settled a 4 litigation between the state and the Mental Health 5 Trust plaintiffs regarding the management of Mental 6 Health Trust land within the state that had been 7 ongoing for over 10 years. HB 201 required that the 8 Alaska Mental Health Trust Authority contract with the 9 Department of Natural Resources to manage the land 10 assets and related natural resources of the Trust in 11 accordance with Trust land management principles 12 imposed on the state by the Alaska Mental Health 13 Enabling Act. 14 The TLO acts as a trust agent in the leasing of 15 Trust land for oil and gas exploration and development. 16 The TLO leased a tract of land which was Trust oil and 17 gas lease tract number 29 to Storm Cat Energy in 2005. 18 Storm Cat subsequently drilled the Northern Dancer 19 number 1 well to a total depth of 6,233 feet in March 20 of 2006. The well is not perforated, is cased to the 21 bottom and is cemented from surface to total depth. 22 The well pad is fully fenced. 23 Storm Cat demobed the drilling rig from the 24 site, but intended to test the well during the term of 25 the lease because it was felt that there were several Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 8 1 sands encountered in the well that were perspective for 2 gas. The well has never been tested because Storm Cat 3 went bankrupt before this testing could be done. 4 The lease with Storm Cat terminated on January 5 31st, 2011. On June 1, 2014 tract 29 was leased to 6 Metgas Industries, USA Limited. This firm was 7 interested in testing the Northern Dancer well for 8 conventional and unconventional gas resources. Lack of 9 funding prevented this from occurring and the lease was 10 terminated on May 31st, 2015 for failure to pay annual 11 lease rentals. 12 Currently the Trust is actively engaged in 13 leasing this tract. A stipulation in the lease will be 14 to provide bonding or some other fiscal instrument to 15 ensure that the well is properly plugged and abandoned 16 during the term of the lease. 17 On August 17, 2018 the Northern Dancer well was 18 visually inspected and pressure tested in the presence 19 of an AOGCC well inspector and shown to have zero 20 pressure in the wellbore. The well equipment and 21 cellar are in good condition, the well pad is in good 22 condition and is fenced around the perimeter and the 23 well itself is fenced and locked. 24 Storm Cat Energy, the lessee who drilled this 25 well, left it in a condition to complete and test and Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 9 1 indicated that they intended to do so. The belief is 2 that there is untested potential for gas resources in 3 this well and the TLO would like to have the 4 opportunity to lease the tract with the goal of having 5 the well tested. TLO is concerned that the 6 requirements and time frame imposed in the notice of 7 violation will preclude that from happening. 8 The TLO understands and accepts its 9 responsibility to ensure that this well's eventually 10 plugged and abandoned. However there is no health or 11 safety issue with this well that would prioritize that 12 work at this time. It is in the Trust's interests to 13 keep the well open to best market its use to a new 14 lessee. There is a potential financial advantage to 15 having this drilled and untested well as part of the 16 TLO leasing package as this land is marketed for gas 17 exploration and development. Plugging the well as is 18 currently being required could decrease the viability 19 of leasing the tract and potentially reduce the 20 revenues that the Trust could receive in including this 21 well in a lease offering. This devalues a Trust asset. 22 As previously mentioned the TLO is required by 23 regulation to manage Trust land for the best interests 24 of the Trust pursuant to the Trust principles imposed 25 by the Alaska Mental Health Enabling Act on the state Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sabilc@gci.net gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 10 1 of Alaska. The state of Alaska, including all of its 2 subdivisions, has a responsibility and an obligation to 3 not take unnecessary actions that harm the interests of 4 the Mental Health Trust or its beneficiaries. 5 Requiring plugging of the well at this time where there 6 is no health or safety concern that would warrant this 7 runs contrary to that obligation of the state. 8 Based on the above the TLO requests relief from 9 the submission of an application to submit sundry 10 approvals form 10-403 for the plugging and abandoning 11 of the Northern Dancer number 1 well as described in 12 docket number OTH-18-031 notice of violation for an 13 indeterminate amount of time so long as the well is 14 periodically tested according to applicable regulations 15 and proves to be in a safe condition. 16 That concludes my remarks. 17 COMMISSIONER FOERSTER: I have questions. 18 CHAIRMAN FRENCH: Commissioner Foerster has a 19 couple questions. 20 MR. FRANGER: Uh-huh. 21 CHAIRMAN FRENCH: Please. 22 COMMISSIONER FOERSTER: You state in your 23 letter and you read currently the TLO is actively 24 engaged in leasing this tract. What does that mean? 25 MR. FRANGER: We're marketing the tract and Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 11 1 I've talked to..... 2 COMMISSIONER FOERSTER: What does that mean? 3 MR. FRANGER: .....talked to perspective 4 lessees. 5 COMMISSIONER FOERSTER: Could you..... 6 CHAIRMAN FRENCH: Elaborate. 7 COMMISSIONER FOERSTER: .....elaborate? Yeah. 8 Good. 9 CHAIRMAN FRENCH: Is it being listed, I mean, 10 is it listed in the Oil and Gas Journal, is it..... 11 MR. FRANGER: No, we've been in discussion with 12 a perspective lessee. 13 COMMISSIONER FOERSTER: You have a viable 14 candidate that you're in negotiations with? 15 MR. FRANGER: Yes. 16 COMMISSIONER FOERSTER: Okay. Thank you. 17 Further down in your letter you state that the belief 18 is that there is untested potential for gas resources 19 in this well. What is the technical basis for this 20 belief? 21 MR. FRANGER: Just based on discussions that 22 the operator -- that we had with the operator at the 23 time the well was drilled and what they reported, 24 actually had been reported in a Petroleum News article 25 at the time that they felt like there was a -- Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 12 1 reasonably there was resources that were in the well. 2 COMMISSIONER FOERSTER: So no -- none of the 3 technical tools that an oil and gas operator uses to 4 identify and quantify potential, just they told so we 5 believe them? 6 MR. FRANGER: Well, they're -- I assume that -- 7 I'm not a well expert, I haven't reviewed the data, but 8 they had reviewed the data, they cased the well with 9 the expectation of testing it. 10 COMMISSIONER FOERSTER: So they just told you 11 there was something there and then that's the reason 12 for your belief? 13 MR. FRANGER: Yes. 14 COMMISSIONER FOERSTER: Okay. I don't have any 15 other questions. 16 CHAIRMAN FRENCH: Commissioner Foerster's asked 17 a couple questions about the same -- I mean, I had 18 three little check marks here for this hearing, you 19 know, is the well mechanically sound, it sounds like it 20 is; will it be inspected and maintained, sounds like it 21 will be; but the biggest question is whether it has 22 future utility. And, you know, what we have to decide 23 is sort of how long we wait for someone to step up and 24 say I'm going to invest money in this well, I'm going 25 to perforate this well, I'm going to, you know, flow Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 13 1 this well to surface and see what I get. And, you 2 know, there's obviously no statutory answer, but it's 3 been sitting in place now for over 10 years and, you 4 know, there has to be an end to this and that's what 5 we're trying to balance out this morning. 6 The photos were good, but remind me, is this on 7 the Kenai Peninsula, it's on the -- what I would call 8 the..... 9 MR. FRANGER: It's in the Mat -Su Valley 10 north..... 11 CHAIRMAN FRENCH: Oh, it's in the Mat -Su 12 Valley. 13 MR. FRANGER: .....north of Big Lake. 14 CHAIRMAN FRENCH: Okay. Okay. I had seen 15 that..... 16 MR. FRANGER: Horseshoe Lake area. 17 CHAIRMAN FRENCH: .....but I'd forgotten. So 18 it's accessible by road, it's not..... 19 MR. FRANGER: Yes. 20 CHAIRMAN FRENCH: .....remote, you can drive to 21 the site? 22 MR. FRANGER: Yes. 23 CHAIRMAN FRENCH: Okay. And just for 24 perspective what's the nearest flowing gas well to 25 yours that you know of offhand, five miles, 10 miles, Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-I8-031 Page 14 1 20 miles? When you..... 2 MR. FRANGER: That would be over in the -- in 3 the..... 4 CHAIRMAN FRENCH: Near Beluga. Right. 5 MR. FRANGER: .....Bay Refuge. Yeah, over in 6 that area. wells drilled. 7 CHAIRMAN FRENCH: Right. Right. And you're on 8 the -- you're on the east side of the Susitna River? 9 MR. FRANGER: Yeah. or, you know, 10 CHAIRMAN FRENCH: Right. Right. So it's not 11 -- I mean, I know you probably don't want to idea of how 12 characterize it this way, but it's not like it's in the 13 hot pocket of development, right, there's not a bunch 14 of other gas wells being drilled around there and 15 produced around there? You do have 16 MR. FRANGER: No. 17 CHAIRMAN FRENCH: Right. 18 MR. FRANGER: Not produced. There's been other 19 wells drilled. 20 CHAIRMAN FRENCH: Okay. And just to follow-up, 21 you don't have any logs or, you know, data that we 22 could review that would give us some idea of how 23 prolific or unprolific the reservoir may or may not be? 24 MR. FRANGER: I -- I think we have logs. 25 CHAIRMAN FRENCH: You do have logs? Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 15 1 MR. FRANGER: Yes. 2 CHAIRMAN FRENCH: Have we reviewed those logs, 3 do we -- we have..... 4 COMMISSIONER FOERSTER: We have those logs. 5 CHAIRMAN FRENCH: Okay. I beg your pardon. 6 Yeah. 7 MR. FRANGER: Okay. 8 CHAIRMAN FRENCH: Any other questions, 9 Commissioner Foerster? 10 COMMISSIONER FOERSTER: No. 11 CHAIRMAN FRENCH: I -- anything else you want 12 to add? 13 COMMISSIONER FOERSTER: No. 14 CHAIRMAN FRENCH: Anybody else here or online 15 wish to testify in this matter? 16 (No comments) 17 CHAIRMAN FRENCH: I don't hear or see any. 18 With that I think we'll adjourn and take the matter 19 under advisement. 20 Thank you. 21 (Hearing adjourned 10:13 a.m.) 22 (END OF REQUESTED PORTION) 23 24 25 Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net AOGCC 10/17/2018 ITMO: REQUEST OF THE TRUST LAND OFFICE Docket No.OTH-18-031 Page 16 1 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) )ss 3 STATE OF ALASKA ) 4 I, Salena A. Hile, Notary Public in and for the 5 State of Alaska, residing in Anchorage in said state, 6 do hereby certify that the foregoing matter in Docket 7 No.: OTH 18-031 was transcribed under my direction to 8 the best of our ability; 9 IN WITNESS WHEREOF I have hereunto set my hand 10 and affixed my seal this 20th day of October 2018. 11 12 Salena A. Hile 13 Notary Public, State of Alaska My Commission Expires: 09/16/2022 14 15 16 17 18 19 20 21 22 23 24 25 Computer Matrix, LLC Phone: 907-243-0668 135 Christensen Dr., Ste. 2., Arch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Docket Number: OTH-18-031 October 17, 2018 at 10:00 am NAME AFFILIATION Testify (yes or no) Z A v CTV. l JC nr_`n/ 1 LCA ✓liJ IAP, f3NAA'L I a 11,-6 tj a NAME AFFILIATIION Testify (yes or nol --p., .. LOA, .Orin Doe^ V\(b c kr\ Mlllew- QNB � ECOVED OICT 1 11 10,18 October 17, 2018 Daniel T. Seamount, Commissioner Alaska Oil and Gas Conservation Commission 222 W. 7th Avenue Anchorage, Alaska 99501 Trust Land Office 2.600 Cordova Street, Suite ioo Anchorage, AK 99503 Tel 907 269.8658 w .trustlandoffice.corn Re: Docket No. OTH-18-031 Notice of Violation Failure to Plug and Abandon Northern Dancer No. I Well (PTD 206-004) Dear Mr. Seamount: The Trust Land Office (TLO) manages land and resources owned by the Alaska Mental Health Trust Authority (the Trust). The Trust owns approximately one million acres of land across the state of Alaska in a perpetual trust for its beneficiaries for the sole purpose of generating revenue from its land and resources to support mental health programs in the state. Beneficiaries include residents suffering from mental health illnesses, developmental disabilities, chronic alcoholism, traumatic brain injuries, and Alzheimer's Disease and related dementia. The Trust is a public corporation of the State of Alaska within the Department of Revenue, and Trust land is not comingled or managed with other state land. By regulation, Trust land must be managed consistently with trust responsibilities accepted by the state under the Alaska Mental Health Enabling Act (P.L. 84-830, 70 Stat. 709 (1956)), which means that management shall be conducted solely in the best interest of the Alaska Mental Health Trust and its beneficiaries. The TLO is a unit within the Department of Natural Resources that was established pursuant to provisions contained in HB 201, which was enacted on June 23, 1994 and in turn settled the litigation between the state and the mental health trust plaintiffs regarding the management of mental health trust land within the state that had been on going for over 10 years. HB 201 required that the Alaska Mental Health Trust Authority contract with the Department of Natural Resources to manage the land assets (and related natural resources) of the Trust in accordance with trust land management principles imposed on the state by the Alaska Mental Health Enabling Act. The TLO acts as the Trust's agent in the leasing of Trust land for oil and gas exploration and development. The TLO leased a tract of land (Trust Oil and Gas Lease Tract 29) to Storm Cat Energy (Storm Cat) in 2005. Storm Cat subsequently drilled the Northern Dancer No. 1 Well (Northern Dancer) to a total depth of 6,233 feet in March of 2006. The well is not perforated, is cased to the bottom and is cemented from surface to total depth. The well pad is fully fenced. Storm Cat demobilized the drilling rig from the site but intended to test the well during the term of the lease because it was felt that there were several sands encountered in the well that were prospective for gas. The well has never been tested because Storm Cat went bankrupt before testing could be done. The lease with Storm Cat Energy terminated on January 31, 2011. Page 1 oft On June 1, 2014 Tract 29 was leased to MetGas Industries (USA) Ltd. This firm was interested in testing the Northern Dancer well for conventional and unconventional gas resources. Lack of funding prevented this from occurring, and the lease was terminated on May 31, 2015 for failure to pay annual lease rentals. Currently, the TLO is actively engaged in leasing this tract. A stipulation in the lease will be to provide bonding or some other fiscal instrument to ensure that the well is properly plugged and abandoned during the term of the lease. On August 17, 2018 the Northern Dancer well was visually inspected and pressure tested in the presence of an AOGCC well inspector and shown to have zero pressure in the well bore. The well equipment and cellar are in good condition. The well pad is in good condition and is fenced around the perimeter, and the well itself is fenced and locked. Storm Cat Energy, the lessee who drilled this well, left it in a condition to complete and test and indicated that they intended to do so. The belief is that there is untested potential for gas resources in this well, and the TLO would like to have the opportunity to lease the tract with the goal of having the well tested. The TLO is concerned that the requirements and time frame imposed in the Notice of Violation will preclude that from happening. The TLO understands and accepts its responsibility to ensure that this well is eventually plugged and abandoned. However, there is no health or safety issue with this well that that would prioritize that work at this time. It is in the Trust's interest to keep the well open to best market its use to a new lessee. There is a potential financial advantage to having this drilled and untested well as part of the TLO leasing package as this land is marketed for gas exploration and development. Plugging the well, as is currently being required, could decrease the viability of leasing the tract, and potentially reduce the revenues that the Trust could receive when including this well in a lease offering. This devalues a Trust asset. As previously mentioned, the TLO, as required by regulation, manages Trust land for the best interests of the Trust pursuant to the trust principles imposed by the Alaska Mental Health Enabling Act on the state of Alaska. The State of Alaska, including all its subdivisions, has a responsibility and an obligation to not take unnecessary actions that harm the interests of the Mental Health Trust or its beneficiaries. Requiring plugging of the well at this time, where there is no health or safety concern that would warrant this, runs contrary to that obligation of the state. Based on the above, the TLO requests relief from the submission of an Application to Submit Sundry Approvals Form (Form 10-403) for the plugging and abandoning of the Northern Dancer No. 1 Well, as described in Docket Number OTH-1 8-031 -Notice of Violation, for an indeterminate amount of time, so long as the well is periodically tested according to applicable regulations and proves to be in safe condition. Sincerely, V" W Menefee Executive Director ' State of Alaska, Alaska Oil and Gas Conservation Commission, Report of Sundry Well Operations Pa e2of2 2600 Cordova Street, Suite roo I Anchorage, NK 99503 1 Tel 907.269.8658 1 www.trustlandoffice.com STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 1 Operations Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Pull Tubing❑ Operations shutdown ❑ Performed: Suspend 0 Perforate ❑ Other Stimulate ❑ Aller Casing ❑ Change Approved Program ❑ Plug for Redrill 13 Perforate New Pool ❑ Repair Well 0 Re-enter Susp Well Well ❑ 2. Operator Trust Land Office 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development ❑ Exploratory 0 Stratigraphic ❑ Service ❑ 208-004 3. Address: 2600 Cordova Street, Suite 100 6. API Number: Anchorage AK 99503 50-009-20031-00 7. Property Designation (Lease Number MHT 930OD54 8. Well IN, and Number: Northern Dancer #1 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): I N/A N/A 11. Present Well Condition Summary: Total Depth measured 6223' KB feet Plugs measured N/A feet true vertical 6223' TVD feet Junk measured feet Effective Depth measured 6097' KI3 feet Packer measured NA feet true vertical 6097' TVD feet true vertical feet Casing Length Size MD TVD Burst Collapse Slructural Conductor NIA Surface 243' 13-3/8" 243' KB 243' KB 5040 psi 2280 psi Intermediate 950' 9.518" 950' KB 950' KB 5750 psi 4230 psi Production 6192' 5-1/2" 6192' KB 8097' TVD 7740 psi 6390 psi Liner Perforation depth Measured depth N/A feet True Vertical depth N/A feet Tubing (size, grade, measured and true vertical depth) NIA Packers and SSSV (type, measured and true vertical depth) N/A 12. Stimulation or cement squeeze summary: WA Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas -MW Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 D 0 0 1 0 Subsequent to operation: 0 0 0 D 0 14. Attachments (r lmd per 20 AAC 23.070, 25.071. d 25.283) 15. Well Class after work: Daily Report of Well Operations O Exploratory 0 Development❑ Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil ❑ Gas ❑ WDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ W INJ ❑ WAG ❑ GINJ ❑ SUSPIRI $PLUG❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Authorized Name Mike Franger Contact Name: Tim Flynn Authorized Title: Senio esource na er Contact Email Tim.FlvnniMak-dc.com Authorized Signature: p Date. -,c ( Contact Phone: 9073175504 Ufl Northern Dancer #1 Current Wellbore Schematic TD @ 6233' Rig RKB: 20.8' Elevation with Pad Thickness:??' RKB to MSL: 77 16" Hole 13-3/8" 64# L-80 Conductor @ 243' MD 12-1/4" Hole 9-5/8" 40# HP -110 Casing @ 950' MD/TVD Bridge Plug @ 1050' MD with 10 bbls class G cement ETOC @ 800' MD a 8-1/2" Hole Pressure tested after 1" stage to 4100 psi Stage Tool at 4671' MD 100 bbls of cement to surface on 2"d stage ECP TAM ACP @ 4754' MD Inflated successfully after I" stage cement Plug Back Depth: 6097' MD 5-1/2" 17# L-80 Casing @ 6192' MD/ 6097' TVD Drafted on: 4/8/2018 / Flvn Northern Dancer #1 Daily Operations Summary API: 50-009-20031-00 Permit #: 206-004 Date and Description of ActivitV Activit 17 August 2018 Arrived at Northern Dancer location and cleared fences for access. Cellar was dry and no signs of tampering with. Needle valve on tree cap was cleaned of debris and pressure gauge attached. AOGCC Inspector arrived on location at 9:00 hrs and witnessed the opening of the needle valve resulting in zero pressure in the 5-1/2" bore. The 9-5/8" x 5-1/2" annulus ball valve was opened and confirmed zero pressure. This annulus had been fully cemented when the well was drilled. Pressure gauge was removed from tree cap and site was secured with fences. �_. E CE Woo ' �/, •1000 Yl I s u �.yY� f�a Vii'✓ � � �� w%"�. elf', �.� ,. �� t 0-7 YYT A u �.yY� f�a Vii'✓ � � �� w%"�. elf', �.� ,. �� t 0-7 YYT Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: OTH-18-031 Motion for Reconsideration Failure to Plug and Abandon Northern Dancer No. 1 The Trust Land Office has requested a hearing upon reconsideration of the above docket. The Alaska Oil and Gas Conservation Commission (AOGCC) grants their request. The AOGCC has scheduled a public hearing on the application for October 17, 2018, at 10:00 a.m. at 333 West 7s Avenue, Anchorage, Alaska 99501. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC at (907) 279-1433, no later than October 2, 2018. Hollis S. French Chair, Commissioner Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number:OTH-18-031 Motion for Reconsideration Failure to Plug and Abandon Northern Dancer No. 1 The Trust Land Office has requested a hearing upon reconsideration of the above docket. The Alaska Oil and Gas Conservation Commission (AOGCC) grants their request. The AOGCC has scheduled a public hearing on the application for October 17, 2018, at 10:00 a.m. at 333 West 7 1 Avenue, Anchorage, Alaska 99501. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC at (907) 279-1433, no later than October 2, 2018. //signature on fileH Hollis S. French Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWNG ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COW OFADWRTISMENT. ADVERTISING ORDER NUMBER (� AO-19-005 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 8/6/2018 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907) 276-7542 TO PUBLISHER: Anchorage Daily News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 LEGAL DISPLAY S CLASSIFIED - OTHER (Specllybalow) n±.»- DESCRIPTION PRICE OTH-18-031 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SoMI7 DV.1'.OIF1/3HOWA'G ADYERT191NG: . OBDERNO.; CERTIFIED AFFIDAYR DF.-: '.� PUBLieliiorvwiie:eizadlinacoer.oF-. :xnyERpsMENr:�g AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae 1 of I Total of All Pages $ REF Type I Number Amount Date Comments I PVN JVCO21795 2 Ao AO-19-005 3 4 AMOUNT SY Acl Template PGM LGR Ohl, FY DIST LIQ 19 A14100 3046 19 0AO ri Title: Purchasing Authority's Signature Telephone Number antl rweiAng a cy name mustappear on all invoices and documents relating to this purchasete is registered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use ofthe state and not for DISTRIBI TIOP .: Dlvlslon.Fiscal/Orf@I}alAO Coptes..Pu... . ..fazed},lllv... .. .. ...... Sng Form: 02-901 Revised: 8/6/2018 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, August 06, 2018 11:13 AM To: Bell, Abby E (DOA); Bixby, Brian D (DOA); Boyer, David L (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Cook, Guy D (DOA); Davies, Stephen F (DOA); Earl, Adam G (DOA); Erickson, Tamara K (DOA); Foerster, Catherine P (DOA); French, Hollis (DOA); Frystacky, Michal (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Laubenstein, Lou (DOA); Loepp, Victoria T (DOA); Martin, Teddy J (DOA); McLeod, Austin (DOA); Mcphee, Megan S (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Rixse, Melvin G (DOA); Roby, David S (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Wallace, Chris D (DOA); AK, GWO Projects Well Integrity; AKDCWellIntegrityCoordinator; Alan Bailey; Alex Demarban; Alicia Showalter, Allen Huckabay; Andrew Vanderlack; Ann Danielson; Anna Raff; Barbara F Fullmer; Barbara Kruk, bbritch; bbohrer@ap.org; Ben Boettger; Bill Bredar; Bob Shavelson; Bonnie Bailey; Brandon Viator; Brian Havelock; Bruce Webb; Caleb Conrad; Candi English; Cody Gauer; Cody Terrell; Colleen Miller; Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Danielle Mercurio; Darci Horner; Dave Harbour; David Boelens; David Duffy; David House; David McCaleb; David Pascal; ddonkel@cfl.rr.com; Diemer, Kenneth J (DNR); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elizabeth Harball; Elowe, Kristin; Elwood Brehmer; Evan Osborne; Evans, John R (LDZ)O; Brown, Garrett A (DNR); George Morris; George Pollock, Gordon Pospisil; Greeley, Destin M (DOR); Greg Kvokov; Gretchen Stoddard; gspfoff,, Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jason Brune; Jdarlington Qarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jill Simek; Jim Shine; Jim Watt; Jim White (im4thgn@gmail.com); Young, Jim P (DNR); Joe Lastufka; Radio Kenai; Burdick, John D (DNR); Easton, John R (DNR); Larsen, John M (DOR); Jon Goltz; Joshua Stephen; Juanita Lovett; Judy Stanek, Kari Moriarty, Kasper Kowalewski; Kazeem Adegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Frank, Kevin J (DNR); Kruse, Rebecca D (DNR); Kyla Choquette; Gregersen, Laura S (DNR); Leslie Smith; Lori Nelson; Luke Keller; Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Michael Bill; Michael Calkins; Michael Moora; Michael Quick, Michael Schoetz; Mike Morgan; MJ Loveland; Motteram, Luke A; Mueller, Marta R (DNR); Nathaniel Herz; knelson@petroleumnews.com; Nichole Saunders; Nick Ostrovsky, NSK Problem Well Supv; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Renan Yanish; Richard Cool; Robert Brelsford; Robert Tirpack; Robert Warthen; Ryan Gross; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly, Sharon Yarawsky; Skutca, Joseph E (DNR); Smith, Kyle S (DNR); Spuhler, Jes J (DNR); Stephanie Klemmer; Stephen Hennigan; Stephen Ratcliff; Sternicki, Oliver R; Moothart, Steve R (DNR); Steve Quinn; Suzanne Gibson; sheffield@aoga.org; Tanisha Gleason; Ted Kramer, Teresa Imm; Terry Caetano; Tim Mayers; Todd Durkee; Tom Maloney, Tyler Senden; Umekwe, Maduabuchi P (DNR); Vern Johnson; Vinnie Catalano; Well Integrity; Well Integrity, Weston Nash; Whitney Pettus; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andy Bond; Bajsarowicz, Caroline J; Bruce Williams; Casey Sullivan; Corey Munk; Don Shaw, Eppie Hogan; Eric Lidji; Garrett Haag; Smith, Graham O (DNR); Heusser, Heather A (DNR); Fair, Holly S (DNR); Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Keith Lopez; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Matt Armstrong; Melonnie Amundson; Franger, lames M (DNR); Morgan, Kirk A (DNR); Umekwe, Maduabuchi P (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Rachel Davis; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Scott Pins; Pollard, Susan R (LAW); Talib Syed; Tina Grovier (tmgrovier@stoel.com); William Van Dyke; Zachary Shulman Subject: Public Notice Mental Health Trust Attachments: Oth-18-031 Public Hearing Mtn for Reconsideration.pdf PLEASE disregard previous Public Notice 0TH -18-031. NOTE new date of hearing. Jody J. Cotombie A06CC Speciat"Assistant ACaska OiCandGas Conservation Commission 333 -Nest 7'R ,avenue Anchorage, ACaska 99501 Office: (907) 793-1221 fax: (007) 21 -CI -7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iodv.colombie@alaska.00v. Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 Joleesa Stepetin being first duly sworn on oath deposes and says that he/she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on August 07, 2018 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Jai it a Steoetin Subscribed and swam to before me this 8th day of Au ust, 2018 YU Notary Public and for The State o leaks. Third Division Anchorage, Alaska MY COMMISSIONEXPI ESAQ,Q ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: OTH-18-031 Motion for Reconsideration Failure to Plug and Abandon Northern Danceb No. 1 The Trust Land Office has requested a hearing upon reconsideration of the above docket. The Alaska Oil and Gas Conservation Commission (AOGCC) grants their request. The AOGCC has scheduled a public hearing on the application for October 17, 2018, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC at (907) 279-1433, no later than October 2, 2018. Hollis S. French Chair, Commissioner Notary Public BRITNEY L. THOMPSON State of Alaska My Commission E)(plres Feb 23, 2019 AUG 10 2018 AFFIDAVIT OF PUBLICATION ,AOGCC Accounts: 270227 OrdeA 0001425858 Product ADN -Anchorage Daily News ST OF AK/AK OILAND GAS cost $129.50 Placement 0300 CONSERVATION COMMISSION Position 0301 333 WEST 7TH AVE STE 100 AklrwnRAGF AK 0051111910 STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he/she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on August 07, 2018 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Jai it a Steoetin Subscribed and swam to before me this 8th day of Au ust, 2018 YU Notary Public and for The State o leaks. Third Division Anchorage, Alaska MY COMMISSIONEXPI ESAQ,Q ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: OTH-18-031 Motion for Reconsideration Failure to Plug and Abandon Northern Danceb No. 1 The Trust Land Office has requested a hearing upon reconsideration of the above docket. The Alaska Oil and Gas Conservation Commission (AOGCC) grants their request. The AOGCC has scheduled a public hearing on the application for October 17, 2018, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC at (907) 279-1433, no later than October 2, 2018. Hollis S. French Chair, Commissioner Notary Public BRITNEY L. THOMPSON State of Alaska My Commission E)(plres Feb 23, 2019 Land Office 2600 Cordova Street, Suite coo Anchorage, AK 9950; Tel 907.269.8658 v w vtrustlandof ce.com August 2, 2018 Daniel T. Seamotmt, Commissioner Alaska Oil and Gas Conservation Commission 222 W. 7th Avenue Anchorage, Alaska 99501 Re: Docket No. OTH-18-031 Notice of Violation Failure to Plug and Abandon Northern Dancer No. 1 Well (PTD 206-004) Dear Mr. Seamount: The Trust Land Office (TLO) requests a hearing pursuant to 20 AAC 25.540 to discuss relief from the submission of an Application to Submit Sundry Approvals (Form 10-403) for the plugging and abandoning of the Northern Dancer Well, as described in the above referenced Notice of Violation. The reasons for this request will be discussed at the hearing, and will include but may not be limited to the following: 1. Current condition of the well. 2. Potential value of the resource to the Trust. 3. Leasing activity for this tract. 4. Obligations of the state to the Trust Si erel , Mike Franger Senior Resource Mana er Colorl Jody J (DOA) From: Davies, Stephen F (DOA) Sent: Friday, July 13, 2018 10:39 AM To: Franger, James M (DNR) Cc: Colombie, Jody J (DOA) Subject: RE: Northern Dancer 1 (PTD 206-004; Docket OTH-18-031) —Informal Review Regarding Notice of Violation Dated June 27, 2018 Mike, The best way forward on the Notice of Violation is for MHT to submit its request for public hearing by August 6, 2018. The AOGCC will not enforce the demand for a Sundry Application to plug and abandon Northern Dancer 1 pending resolution after the public hearing. At the hearing, MHT should be prepared to introduce evidence in support of its application. By way of example, based on MHT's statements at the informal review, MHT should be prepared to demonstrate the well is mechanically sound, has future utility, and will be inspected and maintained in accordance with AOGCC regulations. While AOGCC's hope is that MHT is successful at finding another operator, if it is unable to do so, MHT will be responsible to plug and abandon the well. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) 907-793-1224 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.daviesPalaska.gov. From: Franger, James M (DNR) Sent: Thursday, July 12, 2018 11:43 AM To: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: RE: Northern Dancer 1 (PTD 206-004; Docket 0TH -18-031) — Informal Review Regarding Notice of Violation Dated June 27, 2018 Hi Steve, Can you please clarify for me the deadline by which we need to submit a request for a hearing to address the issues we talked about? Thanks. Mike Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street # 100 Anchorage, Alaska 99503 (907)-269-8657 mike. franeer(a), alaska. Qov From: Davies, Stephen F (DOA) Sent: Wednesday, July 11, 2018 2:08 PM To: Menefee, Wyn (DNR) <wyn.menefee@alaska.gov>; Doucet, Jusdi R (DNR) <iusdi.doucet@alaska.gov>; Franger, James M (DNR) <mike.franger@alaska.gov> Cc: Colombie, Jody 1 (DOA) <iody.colombie@alaska.gov>; Roby, David S (DOA) <dave.robv@alaska.gov>; Rixse, Melvin G (DOA) <melvin.rixse@alaska.gov>; Boyer, David L (DOA) <david.boyer2@alaska.gov> Subject: Northern Dancer 1 (PTD 206-004; Docket 0TH -18-031) —Informal Review Regarding Notice of Violation Dated June 27, 2018 Wyn, Jusdi and Mike: Thank you for participating in the informal review regarding the Notice of Violation for Northern Dancer 1. 1 believe that the participating AOGCC senior staff members were able to answer all of your questions. If not, please feel free to contact Dave (reservoir questions), Mel (drilling and well construction/integrity questions) or me (geology, bonding or general/procedural questions). Hyperlinks to pertinent AOGCC regulations are: • Suspended wells (includes inspection requirements) — 20 AAC 25.110 • Abandonment of wells— 20 AAC 25.105 • Well plugging— 20 AAC 25.112 • Onshore location clearance — 20 AAC 25.170 • Bonding — 20 AAC 25.025 If these links should fail, you can access AOGCC's regulations through our home page at doa.alaska.gov/ogc/. Click on "Links", select "Regulations" from the drop-down menu, and then scroll downward to the Alaska Administrative Code section of the page. Please let me know if I can help you further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) 907-793-1224 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCQ State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Franger, James M (DNR) Sent: Wednesday, July 11, 201810:51 AM To: Colombie, Jody J (DOA) <iodv.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov>; Menefee, Wyn (DNR) <wvn.menefee@alaska.gov>; Doucet, Jusdi R (DNR) <iusdi.doucet@alaska.gov> Subject: RE: Request for informal review Please see attached. Mike Franger Senior Resource Manager Vast Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike.franeer(a alaska.gov From: Colombie, Jody J (DOA) Sent: Tuesday, July 10, 2018 3:12 PM To: Franger, lames M (DNR) <mike.franger@alaska.Rov> Subject: RE: Request for informal review Informal Review set for July 11, 2018 at 1:00 p.m. From: Franger, James M (DNR) Sent: Tuesday, July 10, 2018 1:53 PM To: Colombie, Jody J (DOA) <iody.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: Request for informal review Hi Jody, I'd like to request an informal meeting for 10 am tomorrow (Wed, 7/11) with Steve Davies regarding the Northern Dancer well. Steve mentioned I should contact you regarding this request. Please let me know at your earliest convenience if this is a workable time. Thanks. Mike Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike.frangerAalaska.gov Colombie, Jody J (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, July 11, 2018 2:08 PM To: Menefee, Wyn (DNR); Doucet, Jusdi R (DNR); Franger, James M (DNR) Cc: Colombie, Jody 1 (DOA); Roby, David S (DOA); Rixse, Melvin G (DOA); Boyer, David L (DOA) Subject: Northern Dancer 1 (PTD 206-004; Docket OTH-18-031) — Informal Review Regarding Notice of Violation Dated June 27, 2018 Wyn, Jusdi and Mike: Thank you for participating in the informal review regarding the Notice of Violation for Northern Dancer 1. 1 believe that the participating AOGCC senior staff members were able to answer all of your questions. If not, please feel free to contact Dave (reservoir questions), Mel (drilling and well construction/integrity questions) or me (geology, bonding or general/procedural questions). Hyperlinks to pertinent AOGCC regulations are: • Suspended wells (includes inspection requirements) — 20 AAC 25.110 • Abandonment of wells — 20 AAC 25.105 • Well plugging -20 AAC 25.112 • Onshore location clearance — 20 AAC 25.170 • Bonding — 20 AAC 25.025 If these links should fail, you can access AOGCC's regulations through our home page at doa.alaska.gov/oec/. Click on "Links", select "Regulations" from the drop-down menu, and then scroll downward to the Alaska Administrative Code section of the page. Please let me know if I can help you further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) 907-793-1224 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies(oalaska.aov. From: Franger, lames M (DNR) Sent: Wednesday, July 11, 2018 10:51 AM To: Colombie, Jody J (DOA) <jody.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov>; Menefee, Wyn (DNR) <wyn.menefee@alaska.gov>; Doucet, Jusdi R (DNR) <jusdi.doucet@alaska.gov> Subject: RE: Request for informal review Please see attached. Mike Franger Senior Resource Manager I rust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-657 mike franeerAalaska.gov From: Colombie, Jody J (DOA) Sent: Tuesday, July 10, 2018 3:12 PM To: Franger, James M (DNR) <mike.franaer@alaska.gov> Subject: RE: Request for informal review Informal Review set for July 11, 2018 at 1:00 p.m. From: Franger, James M (DNR) Sent: Tuesday, July 10, 2018 1:53 PM To: Colombie, Jody J (DOA) <iodv.colombie(dalaska.eov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.Rov> Subject: Request for informal review Hi Jody, I'd like to request an informal meeting for 10 am tomorrow (Wed, 7/11) with Steve Davies regarding the Northern Dancer well. Steve mentioned I should contact you regarding this request. Please let me know at your earliest convenience if this is a workable time. Thanks. Mike Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike franeer(aalaska.gov Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, July 11, 2018 2:08 PM To: Menefee, Wyn (DNR); Doucet, Jusdi R (DNR); Franger, James M (DNR) Cc: Colombie, Jody J (DOA); Roby, David S (DOA); Rixse, Melvin G (DOA); Boyer, David L (DOA) Subject: Northern Dancer 1 (PTD 206-004; Docket OTH-18-031) — Informal Review Regarding Notice of Violation Dated June 27, 2018 Wyn, Jusdi and Mike: Thank you for participating in the informal review regarding the Notice of Violation for Northern Dancer 1. 1 believe that the participating AOGCC senior staff members were able to answer all of your questions. If not, please feel free to contact Dave (reservoir questions), Mel (drilling and well construction/integrity questions) or me (geology, bonding or general/procedural questions). Hyperlinks to pertinent AOGCC regulations are: • Suspended wells (includes inspection requirements) — 20 AAC 25.110 • Abandonment of wells — 20 AAC 25.105 • Well plugging — 20 AAC 25.112 • Onshore location clearance — 20 AAC 25.170 • Bonding — 20 AAC 25.025 If these links should fail, you can access AOGCC's regulations through our home page at doa.alaska.gov/oac/. Click on "Links", select "Regulations" from the drop-down menu, and then scroll downward to the Alaska Administrative Code section of the page. Please let me know if I can help you further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) 907-793-1224 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies(dalaska.gov. From: Franger, James M (DNR) Sent: Wednesday, July 11, 2018 10:51 AM To: Colombie, Jody J (DOA) <jody.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov>; Menefee, Wyn (DNR) <wyn.menefee@alaska.gov>; Doucet, Jusdi R (DNR) <jusdi.doucet@alaska.gov> Subject: RE: Request for informal review Please see attached. Mike Franger Senior ,:'source Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike. franaerna,alaska. eov From: Colombie, Jody 1 (DOA) Sent: Tuesday, July 10, 2018 3:12 PM To: Franger, James M (DNR) <mike.franger@alaska.gov> Subject: RE: Request for informal review Informal Review set for July 11, 2018 at 1:00 p.m. From: Franger, James M (DNR) Sent: Tuesday, July 10, 20181:53 PM To: Colombie, Jody J (DOA) <iodv.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: Request for informal review Hi Jody, I'd like to request an informal meeting for 10 am tomorrow (Wed, 7/11) with Steve Davies regarding the Northern Dancer well. Steve mentioned I should contact you regarding this request. Please let me know at your earliest convenience if this is a workable time. Thanks. Mike Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 m i k e. fra n ee rg.a l a s k a. g o v STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Docket Number: OTH-18-031 Notice of Violation Failure to Plug and Abandon the Northern Dancer 1 Well (PTD 206-004) July 11, 2018 at 1:00 p.m. NAME AFFILIATION �r—L C) AW Ropy /TO& cc, Y'lle—v( Rtx5� �9©G-6_1r_ �r Land Office 260o Cordova Street, Suite too Anchorage, AK 99503 Tel 907.269.8658 w vxrustlandoffice.com July 11, 2018 Daniel T. Seamount, Commissioner Alaska Oil and Gas Conservation Commission 222 W. 7th Avenue Anchorage, Alaska 99501 Re: Docket No. OTH-18-031 Notice of Violation Failure to Plug and Abandon Northern Dancer No. 1 Well (PTD 206-004) Dear Mr. Seamount: During the informal meeting scheduled for today, issues to be discussed by Trust Land Office (TLO) personnel include but may not be limited to the following: 1. Implications of completing and submitting the Application for Sundry Approvals (Form 2. Status of the AOGCC bond for this well. �� "a �� ` �'� y`S �` - we//�wk� 3. Potential value to the Trust of this resource. 4. Options for managing this resource. 5. Obligations of the state to the Trust. xere Mike Franger Senior Resource Manager THE STATE ALASKA GOVERNOR BILI. WALKER July 10, 2018 Via E-mail Mr. Mike Franger Trust Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 west Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.claska.gov Re: Docket Number:OTH-18-031 Notice of Violation Failure to Plug and Abandon the Northern Dancer 1 Well (PTD 206-004) Dear Mr. Franger: As part of the informal review process, Mental Health Land Trust has the opportunity to submit documentary material and make written and oral statements regarding the above referenced Notice of Violation. The informal review is scheduled for July 11, 2018 at 1:00 p.m. in the AOGCC's Anchorage office located at 333 West Vh Avenue, Anchorage, Alaska 99501. Copies of all written submissions and summaries of any oral statements planned by Mental Health Land Trust should be provided to the AOGCC no later than July 11, 2018 at 11:00 a.m. Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, July 10, 2018 3:12 PM To: Franger, James M (DNR) Subject: RE: Request for informal review Attachments: SKM_C454e18071015120.pdf Informal Review set for July 11, 2018 at 1:00 p.m From: Franger, James M (DNR) Sent: Tuesday, July 10, 2018 1:53 PM To: Colombie, Jody) (DOA) <jody.colombie@alaska.gov> Cc: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: Request for informal review Hi Jody, I'd like to request an informal meeting for 10 am tomorrow (Wed, 7/11) with Steve Davies regarding the Northern Dancer well. Steve mentioned I should contact you regarding this request. Please let me know at your earliest convenience if this is a workable time. Thanks. Mike Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike.fran er alaska.gov N. Dancer #1 (StormCat) Suspended Well PTD 2060040 Photos by AOGCC Inspector J. Crisp 9/9/2011 Well is located on Mental Health Trust (MHT) land; operator (StormCat Energy Corporation) has left state with no intent to return according to MHT representative Mike Franger (DNR: 269-8657). Attempts by MHT to contact StormCat have been unsuccessful. N. Dancer #1 appears to be an orphaned well. AOGCC Inspector John Crisp accompanied Mr. Franger on 9/9/2011 to site to understand condition of well and location. Well Sign Wellhead; ball valve on OA; gate valve on IA Suspended Well — N. Dancer #1 9-9-11 jc 0 0 Wellhead and well cellar Water well on N. Dancer pad Suspended Well — N. Dancer #19-9-11 jc 2 0 • N. Dancer pad and fencing Suspended Well — N. Dancer #1 9-9-11 jc Comprehensive Well Report 50-009-20031-00-00 Well Name NORTHERN DANCER NO. 1 Field Name *EXPLORATORY Basin COOK INLET BASIN Quad Name Anchorage Operator STORM CAT ENERGY CORPORATION Orig Operator Deepest Form TYONEK Mult Lateral No Slant Directional Type Stats Suspended well Cmpl Catgry OrgTyp OrgCat Facility/Project ELEVATION From MD TVD Dur Survey Production KB 20.5 Kickoff Required? ❑ Class DF Plug Back 6097 6097 Method Gr Hole 6233 6233 1 Recvd _ ❑ Commingled Sri Logger _ J _ _ _ Dwn Hole ❑ Drilling Unit Mineral Interest Fed I!] St W Native ❑J SmpRq? H2S? A[ Surf El Dt Srf Apr #Error Acres 5970 MH ❑J Fee❑_ _ ] Desc_ Surf Legal S: 1 T: 17N R: 4W PM: S 2287 Ft from S Line, 2601 Ft from E Line BH Legal S: I T: 17N R: 4W PM: S 2287 Ft from S Line, 2601 Ft from E Line Geologic Markers X Y 514572.4238535 2773839.90013251 514572.423853499 2773839.90013251 Status Dt Prmt App Prmt Exp Spudded TD Rchd Cmpltd 1st Prod Ist Inj PB Dt P/A Rel Dt 206-004-0 3/18/2006 1/25/2006 2/14/2006 3/14/2006 6/1/2008 IS1P Nat Prod ❑ Nat Treat Oil Gas Brine Lat Long 61.591907123247 -149.916343882207 61.591907123247 -149.916343882207 Boreholes, Strings, Equipment Specifications Specifications for Strings/Tubulars Strings Cemented, Intervals, Dates Cement & Plug Desc Info Completion Information for Screens, Open Hole, or Perforated Intervals Well -Specific Zones Well -Specific Stimulations Downhole Geophysical Logs, Drill Cores, Samples Zone Formations Comprehensive Well Report 50-009-20031-00-00 206-004-0 Log Type Legacy Log Description Logging Contractor Confidential End Conf Run Date Recvd Dt Top Base Ref Elev Measd BH Temp Missing Interval Leeacv Lae Description / Comments Induction/Resistivity Schlumberger ❑ 6/1/2008 3/15/2006 4/11/2006 50 6242 ❑ Array Induction Litho -Density Comp Neutron GR BHCS FMI DIP Induction/Resistivity Schlumberger ❑ 6/1/2008 3/15/2006 4/11/2006 50 6242 21 G 120 ❑ PEX Array Induction Litho -Density Comp Neutron GR Sonic Schlumberger ❑ 6/1/2008 3/15/2006 4/11/2006 950 6242 21 G 120 ❑ Borehole Compensated Sonic GR Dip Schlumberger El6/1/2008 3/15/2006 4/11/2006 950 6242 21 G 120 ❑ FMI / Dipmeter Mud Log ScannedFile ❑ 6/1/2008 243 6233 ❑ MD 00243-06233 Mud Log Other ❑ 6/1/2008 4/11/2006 243 6233 238 K ❑ Horizon Well Loggiing Inc Mud Log Other ❑ 6/1/2008 4/11/2006 243 6233 ❑ Plus PDF files Well History Effect Dt Sundry N 1/11/2006 1/24/2006 1/24/2006 1/25/2006 1/25/2006 2/14/2006 Form Rcvd Type of Work Sub Rpt Req Rpt Req Date 401 Dt Application Received (10-401) Geolo. Commissioner Appvd Permit Engin. Commissioner Appvd Permit 401 Dt Well Permit Issued 401 Dt Well Permit Approved 407 Dt Well Spudded Comments New Application for Permit to Drill received. Geologic Commissioner Dan Seamount approved permit. Engineering Commissioner Cathy Foerster approved permit. Wednesday, July 11, 2018 Page 2 of 4 Comprehensive Well Report 50-009-20031-00-00 User Comment 206-004-0 3/10/2006 OTHER Report: Well Flowed while Drilling Well Flowed: Daily Drilling Report (3/10/2006): Drill well intent is natural gas target. SFD 4/1/2014 8-1/2" hole from 5843'to 5967; Circulate & condition Pho Well Flowed: Daily Drilling Report (3/10/2006): Drill 8-1/2" hole from 5843'to 5967'; Circulate mud; Rig service; Circulate & condition mud - 212 u from 9.5 tp 9.6; S/D pumps for 30 minutes - monitor for gas influx; Circulate & condition mud - gas peak - increase mud weight from 9.5 tp 9.6; S/D 230 u gas peak. Weight mud to 9.7#; S/D pumps - monitor well - well flowing; Circulate & pumps for 30 minutes - monitor for gas influx; well flowing; Circulate & condition mud - 160 u gs peak - increase weight to 10.1#; monitor well Circulate & condition mud - 230 a gas peak. Weight with 10.1# - no flow; Circulate & condition mud - 116 u gas peak - increase mud weight to 10.3# mud to 9.7#; S/D pumps - monitor well - well flowing; Circulate & condition mud - 230 u gas peak - increase weight to 9.9#; S/D pumps & monitor for gas influx - _ well flowing; Circulate & condition mud - 160 u gs peak - increase weight to 10.1#; monitor well with 10.1 # - no flow; Circulate & condition mud - 116 u gas peak - increase mud weight to 10.3# for trip margin. 3/14/2006 407 Dt Total Depth Reached 3/18/2006 Change of Well Status The Current Well Status was changed to SUSP on the effective date. This change was performed by user GLS. 4/12/2006 306-086 403 Dt Application Withdrawn (by email/letter) 4/23/2009 Report: Well Data Correction Incomplete permit & 10-407 some data calculated by the agency from various data provided by the operator BFL. Alternate API Well Numbers Well Comments Date / Time User Comment 7/2/2014 11:35:15 AM GLS Changed status to Suspended after review of well file history. 4/1/2014 2:21:42 PM SFD Permitted Status changed to 1 -Gas based on page 86 of well history file which staes the proposed well intent is natural gas target. SFD 4/1/2014 5/8/2012 2:52:40 PM Pho Well Flowed: Daily Drilling Report (3/10/2006): Drill 8-1/2" hole from 5843'to 5967'; Circulate & condition mud; Rig service; Circulate & condition mud - 212 u gas peak - increase mud weight from 9.5 tp 9.6; S/D pumps for 30 minutes - monitor for gas influx; Circulate & condition mud - 230 u gas peak. Weight mud to 9.7#; S/D pumps - monitor well - well flowing; Circulate & condition mud - 230 u gas peak - increase weight to 9.94; S/D pumps & monitor for gas influx - well flowing; Circulate & condition mud - 160 u gs peak - increase weight to 10.1#; monitor well with 10.1# - no flow; Circulate & condition mud - 116 u gas peak - increase mud weight to 10.3# for trip margin. SFD 5/8/12 4/23/2009 7:18:44 AM RFO Location information calculated from as -built 4/22/2009 1:35:37 PM RFO Incomplete and inaccurate data given on 10-407. Repeated calls and emails addressing the data were not addressed by the operator. Directional Survey Data Page 3 of 4 Wednesday, July 11, 2018 n T Land Office 260o Cordova Street, Suite too Anchorage, AK 99505 Tel 907.269.8658 www.trustiaridoffice.com July 11, 2018 Daniel T. Seamount, Commissioner Alaska Oil and Gas Conservation Commission 222 W. 7th Avenue Anchorage, Alaska 99501 Re: Docket No. OTH-18-031 Notice of Violation Failure to Plug and Abandon Northern Dancer No. 1 Well (PTD 206-004) Dear Mr. Seamount: During the informal meeting scheduled for today, issues to be discussed by Trust Land Office (TLO) personnel include but may not be limited to the following: 1. Implications of completing and submitting the Application for Sundry Approvals (Form 10-403). 2. Status of the AOGCC bond for this well. 3. Potential value to the Trust of this resource. 4. Options for managing this resource. 5. Obligations of the state to the Trust. ia7l�^ Mike Franger Senior Resource Manager Davies, Stephen F (DOA) From: Franger, lames M (DNR) Sent: Wednesday, July 11, 2018 10:51 AM To: Colombie, Jody 1 (DOA) Cc: Davies, Stephen F (DOA); Menefee, Wyn (DNR); Doucet, Jusdi R (DNR) Subject: RE: Request for informal review Attachments: AOGCC letter signed.pdf Please see attached. Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike.franger@alaska.gov From: Colombie, Jody J (DOA) Sent: Tuesday, July 10, 2018 3:12 PM To: Franger, James M (DNR) <mike.franger@alaska.gov> Subject: RE: Request for informal review Informal Review set for July 11, 2018 at 1:00 p.m. From: Franger, James M (DNR) Sent: Tuesday, July 10, 2018 1:53 PM To: Colombie, Jody J (DOA) <iody.colombiePalaska.aov> Cc: Davies, Stephen F (DOA) <steve.daviesc@alaska.gov> Subject: Request for informal review Hi Jody, I'd like to request an informal meeting for 10 am tomorrow (Wed, 7/11) with Steve Davies regarding the Northern Dancer well. Steve mentioned I should contact you regarding this request. Please let me know at your earliest convenience if this is a workable time. Thanks. tikrjM Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street #100 Anchorage, Alaska 99503 (907)-269-8657 mike.franeer(a alaska.e�ov r r Land Office 26cea Cordova Street, Suite too Anchorage, AK 99503 Tel 9oi.269.8658 www.tru tlando[7AC.Cont July 11, 2018 Daniel T. Seamount, Commissioner Alaska Oil and Gas Conservation Commission 222 W. 7th Avenue Anchorage, Alaska 99501 Re: Docket No. OTH-18-031 Notice of Violation Failure to Plug and Abandon Northern Dancer No. 1 Well (PTD 206-004) Dear Mr. Seamount: During the informal meeting scheduled for today, issues to be discussed by Trust Land Office (TLO) personnel include but may not be limited to the following: 1. Implications of completing and submitting the Application for Sundry Approvals (Form 10-403). 2. Status of the AOGCC bond for this well. 3. Potential value to the Trust of this resource. 4. Options for managing this resource. 5. Obligations of the state to the Trust. i erel Mike Franger Senior Resource Manager THE STATE °fALASKA GOVERNOR BILL WALKER June 27, 2018 CERTIFIED MAIL — RETURN RECEIPT REQUESTED 7015 0640 0003 5185 6489 Mr. Mike Franger Trust Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Re: Docket Number: OTH-18-031 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.oloska.gov Notice of Violation Failure to Plug and Abandon the Northern Dancer 1 Well (PTD 206-004) Dear Mr. Franger: The AOGCC is in receipt of your letter dated May 24, 2018 regarding the AOGCC's Notice of Violation (NOV) to the Mental Health Trust (MHT) based on the failure to properly plug and abandon the Northern Dancer 1 well. AOGCC does not agree with MHT's interpretation of its regulations. AOGCC clearly has authority to order a landowner to plug and abandon a well on the landowner's land. AS 31.05.030; 20 AAC 25.105. The plain language of 20 AAC 25.105 explicitly contemplates that the owner and the landowner may be the same person or entity. DNR records indicate Storm Cat's lease expired in 2013. Storm Cat no longer has the right to drill into and produce from the MHT lease. MHT is liable to properly plug and abandon the well. As to the boilerplate appellate language, you are correct that the NOV is not a final decision or order. A reconsideration and appeal notice was erroneously included at the conclusion of the NOV. The NOV should have notified MHT of its right to concur in whole or in part, to request informal review, or to request a hearing. Although AOGCC does not agree with MHT's contention that it needs to further explain the basis of its authority or provide additional information, given the potential confusion created by the inclusion of the appeal notice, enclosed you will find an amended NOV regarding MHT's failure to properly plug an abandon the Northern Dancer 1 well. Docket Number: OTH-18-031 June 27, 2018 Page 2 of 2 If you have questions regarding the NOV or if MHT wants to schedule an informal review, please contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Sincerely, Hollis French Chair, Commissioner THE STATE °fALASKA. GOVERNOR BILL WALKER June 27, 2018 CERTIFIED MAIL — RETURN RECEIPT REQUESTED 7015 0640 0003 5185 6489 Mr. Mike Franger Trust Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov Re: Docket Number: OTH-18-031 Notice of Violation Failure to Plug and Abandon the Northern Dancer 1 Well (PTD 206-004) Dear Mr. Franger: On February 1, 2005, the Mental Health Trust Land Office (MHT) approved Storm Cat Energy Corporation (SCEC) as the 100% working interest owner of MHT oil and gas lease 9300054 (the lease). SCED drilled the Northern Dancer 1 exploration well (Northern Dancer 1) on the lease in early 2006. On March 18, 2006, Northern Dancer 1 was suspended. On September 17, 2009, MHT extended the lease term to January 31, 2012. On July 18, 2013, the lease expired. The lease has terminated. Northern Dancer 1 has not been properly plugged and abandoned. Because the lease has expired, MHT is currently both the landowner and the owner — the entity with the right to drill into, and appropriate the oil and gas produced from, the lease — and is responsible for plugging and abandonment of Northern Dancer 1. Within 30 days of receipt of this letter, MHT shall submit an Application for Sundry Approvals (Form 10-403) for plugging and abandonment of Northern Dancer 1. Once approved, the operations proposed in the Sundry shall be completed within 18 months from the of the date of this letter. If you have questions regarding this NOV or if MHT desires an informal review, please contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. Docket Number: OTH-18-031 June 27, 2018 Page 2 of 2 The AOGCC reserves the right to pursue enforcement action in connection with the failure to properly plug and abandon this well prior to 18 months from the of the date of this letter. Sincerely, 1 Hollis French Chair, Commissioner NOTICE Within 15 days after written notice of the entry of this order, or such further time as the commission grants for good cause shown, a person may file with the commission a written response that concurs in whole or in part with the order, request informal review or request a hearing under 20 AAC 25.540. If the notice was mailed, then the period of time shall be 18 days. If a person fails to file a timely written response, the commission will deem matters set forth in this order or decision as accepted by the party failing to respond. If a hearing is requested, the commission will schedule a hearing under 20 AAC 25.540. If a person requests informal review, the commission will provide an opportunity for the person to submit documentary material and make a written or oral statement. The commission will then issue a proposed decision or order. A proposed decision or order becomes final I I days after it is issued unless within 10 days after it is issued the person files a written request for a hearing. If a request for hearing is filed the commission will schedule a heating under 20 AAC 25.540. If a person concurs in a proposed action or if after informal review or a hearing the commission finds that a person has violated or failed to comply with a provision of AS 31.05 or 20 AAC 25 or a commission order, permit or other approval, the commission may order one or more of the following: 1. Corrective action or remedial work; 2. Revocation or suspension of a permit or other approval; 3. Payment under the bond required by 20 AAC 25.025; 4. Imposition of penalties under AS 31.05.150. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. MAY 2 4 218 May 24, 2018 Hollis French, Chair and Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7' Avenue Anchorage, Alaska 99501-3572 Re: Docket Number OTH-18-031 67) trII�-)t � Land Office 2600 Cordova Street, Suite too Anchorage, AK 99503 Tel 907.269.8658 www.trusdandoffice. crn Notice of Violation- Failure to Plug and Abandon Northern Dancer 1 (PTD 206-004) Dear Mr. French: This letter is in response to your letter dated May 4, 2018, regarding a Notice of Violation under Docket Number OTH-18-031. It indicates it is a Notice of Violation for "Failure to Plug and Abandon a Well Prior to Expiration of Owner's Rights in a Lease" and pertains to the Northern Dancer 1 well drilled by Storm Cat Energy Corporation on land leased from the Alaska Mental Health Trust Authority ("Trust'D, through the Trust Land Office ("TLO"). Your letter does not explain the statutory or regulatory basis for alleging that the Trust, as the landowner, "is responsible for plugging and abandonment of Northern Dancer 1." The Trust is the landowner and lessor, not the lessee or "owner" as defined in 20 AAC 25.990(47) (and AS 31.05.170). Without any explanation of what the nature of the Trust's alleged violation is or the reasons that the Commission considers the Trust to have committed the violation, we cannot determine whether or not we agree with your conclusion. Please provide additional information so that we can have an effective dialogue with you about this well. Your letter also contains a "Reconsideration and Appeal Notice." That notice indicates that the Trust/TLO has "20 days after written notice of the entry of this order or decision" to seek reconsideration of the "order or decision" in the letter. We believe that this notice is in error because it appears that your letter was intended either to simply start a dialogue with the Trust/TLO regarding this well ("The AOGCC irserves the right to pursue enforcement action', or to start an enforcement proceeding ("Notice of Violation', but was not an appealable order. Either an open dialogue or an enforcement proceeding would give the Trust/TLO several opportunities to engage with the Commission over an alleged violation before an order subject to reconsideration and appeal to superior court would be issued (20 AAC 25.535). Nevertheless, if you intended this letter to be an order or decision, then please consider this response a request for reconsideration for the reasons stated above and for the reason that the Trust/TLO does not believe it violated any provision of statute or regulation or any Commission order, permit, or approval. However, as stated above, we cannot fully respond to the allegation without additional information from the Commission. Page 1 of 2 The TLO considers this well to be a potentially significant asset of the Trust and has been 'attempting to lease the tract containing this well and hopefully get it tested before it is plugged. The well has been inspected by Commission personnel in the past and found to be in a stable and safe condition. To our knowledge this is still the case and the well does not represent any present danger. We look forward to working with you regarding the best path forward on this well. Please provide the information requested above so that we can evaluate the Cormnission's concerns, and let us know in what status the Commission believes this matter to be. Sincerely, V�v � Wyn Menefee Executive Director Pa 2 ocf ?tn 2600 Cordova Street, Suite too I Anchorage, AK 99503 1 Tel 907.269.8658 1 www.trustland�ice. o THE STATE OfALASKA GOVERNOR BILL WALKER May 4, 2018 CERTIFIED MAIL – RETURN RECEIPT REQUESTED 7015 0640 0003 5185 6458 Mr. Mike Franger Trust Resource Manager Mental Health Land Trust 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.oagcc.ciaska.gov Re: Docket Number: OTH-18-031 Notice of Violation Failure to Plug and Abandon a Well Prior to Expiration of Owner's Rights in a Lease Northern Dancer I (PTD 206-004) Dear Mr. Franger: On February 1, 2005, the Mental Health Trust Land Office (MHT) approved Storm Cat Energy Corporation (SCEC) as the 100% working interest owner of MHT oil and gas lease 9300054 (MHT 9300054). SCEC drilled the Northern Dancer 1 exploration well on MHT 9300054 in early 2006, and suspended the well on March 18, 2006. On September 17, 2009, MHT extended the lease term to January 31, 2012. On July 18, 2013, lease MHT 9300054 expired. . Northern Dancer 1 has never been properly plugged and abandoned. SCEC declared bankruptcy. As a result, the MHT—as landowner for MHT 9300054—is responsible for plugging and abandonment of Northern Dancer 1. Within 30 days of receipt of this letter, MHT shall submit an Application for Sundry Approvals (Form 10-403) for plugging and abandonment of Northern Dancer 1. Once approved, the operations proposed in the Sundry shall be completed within 18 months from the of the date of this letter. Docket Number: OTH-18-031 May 4, 2018 Page 2 of 2 The AOGCC reserves the right top _ properly plug and abandon the North - As provided in AS 31.05.080(a), within 20 days after AOGCC grants for good cause shown, a person affecte determined by it. If the notice was mailed, then the per— respect er respect in which the order or decision is believed to be The AOGCC shall grant or refuse the application for r on it within 10 -days is a denial of reconsideration. If a denial of reconsideration are FINAL and may be appe on which the AOGCC mails, OR 30 days if the AOGCC the denial is by inaction, in which case the appeal reconsideration was filed. If the AOGCC grants an application for reconsideration reconsideration will be the FINAL order or decision of- filed ffiled within 33 days after the date on which the AOGCC_ on reconsideration. In computing a period of time above, the date of the ev the period; the last day of the period is included, unless — — p.m. on the next day that does not fall on a weekend or �.— Docket Number: OTH-18-031 May 4, 2018 Page 2 of 2 The AOGCC reserves the right to pursue enforcement action in connection with the failure to properly plug and abandon the Northern Dancer 1. Sincerely, Hollis S. French Chair, Commissioner AND As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 nm —1h.—n A.... 1..e.. --.1-n ___I . .. . ... XHVZE Image Project Well History File Cover Page This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. QC) L� Well History File Identifier Organizing (done) ❑ Two -sided III IIIII II III II III ❑ Rescan Needed (II IIIII II II III III RE CAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: Other Items Scannable by ❑ Poor Quality Originals: a Large Scanner LP Other: OVERSIZED (Non - Scannable) ❑ ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: ra / Q D /s/ Project Proofing III IIIIIIIIIII II III BY: Maria Date: I ! o 0 /s/ Scanning Preparation _ x 30 = Jo + o © =TOTAL PAGES 1 O (Count does not include cover sheet) BY: Maria Date: ar /s/ Production Scanning III !IlIIIIIIII IIIII Stage 1 Page Count from Scanned Filer (Count does include cov heet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: l C/ // 0 / 0 7 /s/ MP Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: Scanning is complete at this point unless rescanning is required. II I II'I II I II II IIIII ReScanned III II�IIIII II III BY: Maria Date: Comments about this file: Quality Checked III IIIII III IIIIIII 10/6/2005 Well History File Cover Page.doc . • 0 - STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Suspended Well Inspection Report Date Inspected: 09/09/11 Inspector: John Crisp Operator: Alaska Mental Health Trust Well Name: Northern Dancer #1 Oper. Rep: Mike Franger PTD No.: 206 -004 Oper. Phone: 907 269 -8657 Location Verified? Yes Oper. Email: Mike Franaeraalaska.gov If Verified, How? Other (specify in comments) Onshore / Offshore: Onshore Suspension Date: 05/01/06 Date AOGCC Notified: 09/07/11 Sundry No.: None Type of Inspection: Initial Wellbore Diagram Avail.? No Well Pressures (psi): Tubing Plugged Photos Taken? Yes IA Plugged OA Plugged . t. , j S p -' ii ' 1.1. 1 1 . 1 ' ! Condition of Wellhead: Wellhead in good condition. Cellar dry with absorb left in botton. Ball valve on OA plugged. Gate valve on IA plugged but operable. Dry hole tree has needle valve installed that is also plugged. Tubing hanger lock downs look to be backed out as far as possible. No record of kill string installed or tubing hanger. Condition of Surrounding Surface Location was fenced but was broken into during the last month. Well head looked untouched. Water well fenced beside rock location. Location: Follow Up Actions Inspection in support of MHTL decisions and planning for abandonment of well Needed: Attachments: Photos (3 pgs) REVIEWED BY: Insp. Supry 4l ,( Comm PLB 08/2010 Suspended Well Northern Dancer #1 Mental Health Trust 09 -09 -11 jc.xls • • N. Dancer #1 (StormCat) Suspended Well PTD 2060040 Photos by AOGCC Inspector J. Crisp 9/9/2011 Well is located on Mental Health Trust (MHT) land; operator (StormCat Energy Corporation) has left state with no intent to return according to MHT representative Mike Franger (DNR: 269 - 8657). Attempts by MHT to contact StormCat have been unsuccessful. N. Dancer #1 appears to be an orphaned well. AOGCC Inspector John Crisp accompanied Mr. Franger on 9/9/2011 to site to understand condition of well and location. i I 11 ! ; i \ a ' C \i '! 1 ' ,, i0.01 1 r t * ' ' ' Nor Daneer No l D � � O w ; �' t, 11 �* 50 0-2N3 1 API T Location. L Well Sign ' 2 FSI, 25 4W sM c 1. T17N, Se C. to Dr d !: 206 Wellhead; ball valve on 0 - OA; gate valve on IA k " ._....sic Suspended Well — N. Dancer #1 9 -9 -11 jc 1 • • fi a ,% ., ' � / r Wellhead and well cellar Q .5 s : , ,�, xs y ,` ` j 4 :1 d . ii:i.,- -.11.,..: , ,4t ) i i-,,,-, -......,:t.;:.,,,..,-,,. , ,.-_-. ..,.......„ ,,....; ,,,., .. . , ,,,-, . '.r , . t , N + .4,, , ,,1, t' , f ,I , < . t Water well on N. Dancer \' ,), . . ' pad ,', ;•,,,..),..,,,w4),:k.'..•.,,.__44...\••,:-'•.?:."):41) \ -'-' '''.'''''.'•:':--.''''''''''''' .‘, 2 Suspended Well — N. Dancer #1 9 -9 -11 jc • • • � ,1 y N. Dancer pad an ., fencing oi .. YTW I • . . ., .1.. i _ S .. Suspended Well — N. Dancer #1 9 -9 - 11 j c 3 ~~ ~.i 9hr.. ~ ~E_y~ ` ` • . 7 MICROFILMED 6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc I DATA SUBMITTAL COMPLIANCE REPORT 12/3/2009 Permit to Drill 2060040 Well Name /No. NORTHERN DANCER NO. 1 Operator STORM CAT ENERGY CORPORATIO API No. 50- 009 20031 -00 -00 MD 6233 TVD 6233 Completion Date 5/1/2006 Completion Status P&A Current Status P&A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey No DATA INFORMATION Types Electric or Other Logs Run: Text to long for this data field. See 10 -407 (data taken from Logs Portion of Master Well Data Maint Well Log Information: r Log/ Electr Data Digital Dataset Log Log Run Interval OH Ty Med /Frmt Number Name Scale Media No Start Stop CH Received Comments og Mud Log 2 Col 243 6233 Open 4/11/2006 Horizon Well Loggiing Inc t C Las 13775 Log 243 6233 Open 4/11/2006 Plus .PDF files -D C Las 137761duction /Resistivity 1 50 6242 Open 4/11/2006 Array Induction Litho 1 Density Comp j BHCS FMI DIP Neutron GR 4)g Cog Induction /Resistivity 25 Col 1 50 6242 Open 4/11/2006 PEX Array Induction Litho Density Comp Neutron GR -L/' og Sonic 5 Col 1 950 6242 Open 4/11 /2006 Borehole Compensated Sonic GR .Wog Dip 5 Col 1 950 6242 Open 4/11/2006 FMI Dipmeter Well Cores /Samples Information: Sample Interval Set III Nyrie Start Stop Sent Received Number Comments 1 c✓Cuttings 240 6233 3/29/2006 1196 Cores and /or Samples are required to be submitted. This record automatically created from Permit to Drill Module on: 1/26/2006. 1 DATA SUBMITTAL COMPLIANCE REPORT 12/3/2009 Permit to Drill 2060040 Well Name /No. NORTHERN DANCER NO. 1 Operator STORM CAT ENERGY CORPORATIO API No. 50- 009 20031 -00 -00 MD 6233 TVD 6233 Completion Date 5/1/2006 Completion Status P&A Current Status P &A UIC N ADDITIONAL INFORMATION n Well Cored? Y Daily History Received? l�0'/ N Chips Received? -'Y N Formation Tops N Analysis rY N Received? Comments: Compliance Reviewed By: Date: 3 II STATE OF ALASKA Rr6 S11 ALASKA PAND GAS CONSERVATION COMMISSI 4 WELL COMPLETION OR RECOMPLETION REPORT AND 4.0G C ep la. Well Status: Oil❑ Gas 12 Plugged Abandoned Suspended❑ WAG lb. Well Class: fss 4) 20AAC 25.105 20AAC 25.110 Development [1] tory[ e GINJ WINJ WDSPL No. of Completions Other Service El Stratigraphic L 2. Operator Name: Storm Cat Energy Corporation 5. Date Co l S p or 12. Permit to Drill Number: 4, 't �t �s: c Aban 'fn roc 206 -004 04, 3. Address: 6. Date Spudded: 13. API Number: 1125 17th Street, Suite 2310 Denver, CO 80202 February 14, 2006 50- 009 20031 -00 4a. LocatigfJ pf�1 /eII n ental Section): 7. Date TD Reached: 14. Well Name and Number: 8P' Surface: FSLFFF ,S 1 T17N R4W SM March 14, 2006 Northern Dancer #1 Top of Productive Horizon: n__ j 8. KB Elevation (ft): 15. Field /Pool(s): 4,28 FSL 2661' F,L,S 1 T17N R4W SM 20.8 elevation Total Depth: 9. Plug Back Depth(MD +TVD): ,2287 FSL 2.699' F /L,S 1 T17N R4W SM 6097' KB MD 4b. Location of Well (Sta e 6se Plan; Coor Q9 10. Total Depth (MD TVD): 16. Property Designation: Surface: x� y- 59 T Zone- 4 I 6233' KB MD MHT 9300054 TPI: x- 1664564.45 y- 2773G4G.13 Zone- 4 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- 1654664745^ y- 2773516.19 Zone- 4 NA NA 18. Directional Survey: Yes No p 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA 21. Logs Run: Schlumberger Platform Express (Array -Ind -Litho Density-Comp Neutron -GR -Cal) FMI- Borehole Comp Sonic aborted TD to 5466' 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 13 3/8" 68# L -80 Surface 243' KB Surface 243' KB 16" 225 sks Class G /Cal. Ch1.15.8 None 9 5/8" 40# HP -110 Surface 950' KB Surface 950' KB 12 1/4" 141 sks 12.8 ppg lead and None 5.5" 17# L -80 Surface 6192' KB Surface 6097' KB 8.5" 496 sks 15.8# set stage tool None 043 11 23. Perforations open to Production (MD TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none SIZE DEPTH SET (MD) PACKER SET (MD) None none 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED none 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): NA NA Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period Flow Tubing Casing Press: Calculated Oil-Bbl: Gas -MCF: Water -Bbl: Oil Gravity API (corr): Press. 24 -Hour Rate .41. 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none �iDI41PLE'i'iC ^d Core chips previously submitted on March 29, 2006. vb f 1 4 S "L APR 2 `2 2009 i Form 10 -407 Revised 12/2003 CONTINUED ON REVERSE 28. GEOLOGIC MARKERS 29. MATION TESTS NAME MD TVD Include and briefly summa e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state See attached mud log. "None 30. List of Attachments: Survey Plat Mud Log 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Keith Knapstad Title: Vice President Operations, USA Signature: f Phone: 303 991 -5070 Date: April 11, 2006 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas Injection, Water Injection, Water Alternating -Gas Injection, Salt Water Disposal, Water Supply for injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 20123- 00 -00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: If no cores taken, indicate "none Item 29: List all test information. If none, state "None Form 10 -407 Revised 12/2003 Daily Drilling Reports for Storm at Northern Dancer #1 Page 1 of 1 Ill McMains, Stephen E (DOA) From: Corri Feige [ags @mtaonline.net] Sent: Saturday, March 22, 2008 9:35 AM To: McMains, Stephen E (DOA) Cc: 'Keith Knapstad' Subject: Daily Drilling Reports for Storm Cat Northern Dancer #1 Attachments: Storm Cat Energy ND #1 Daily Drilling Reports.pdf Hi Steve. Per our telephone conversation, please find attached a PDF file containing copies of all Daily Drilling Reports for operations at the Northern Dancer #1. If you require any additional information, please don't hesitate to call. Cheers, Corri Corri Feige The Castle Mountain Group, Inc. (Regulatory, Permitting, and Project Management Services) PO Box 1208 19900 E. Chickaloon Road Chickaloon, AK 99674 (907) 232 -1192 (907) 745 -7864 (fax) Email: agOonm tonlinc.net DISCLAIMER: The information in this email and in any attachments is confidential and may be privileged. If you are not the intended recipient, please destroy this message, delete any copies held on your systems and notify the sender immediately. You should not retain, copy or use this email for any purpose, nor disclose all or any part of its content to any other person. 3/24/2008 I Am i 'WIN NOTE: 7M L COolai7!N z. ATEB e140141 AIa WAD 83 ALA8KA STATE 3 2 6 PLATE NE 4 13A8ED GN 118E Gra VALUEe. 2. GEOGRAWHIc COOI�INATEa.4 WAD 83, 3. ALL DletANGEe ARE GROItIP *4 UAL SURVEY FEET. 4. VERTICAL DAttUI 13 BACCD Gt'! FGU EC BECTION E COMER 2/1/11.42 EL: 3 2.811 12 na. w 7 NORTHERN DANCER No.1 LOCATED 2281' NOl tH 1920111 THE *m114 LrNE Oc IF SEctiON 1 AND 73 mm 01' u Pots -t THo rA9t LIFE cr SEGtictt 1. T F7 N. la 4 IA eE I ARP 11ERIDIA:4 AT LAT. etr6>S'28,420$4'1�l LO I& Iar'99+a1.60E83T.1 ASP z 4 N•2TI3646.13 E08841584,48 [NAD 83J 15 18 GRrJUJV ELEVATION 2T1.04' 14 4, r 1" i MILE SECTION 35 SECTION 36 SEC iION 30 *I"IN N 89•45' W 5268.l2`(CALC) a c a (]4 o° sECTtol31 o TOWt SHIP 17 NORTH. RANGE 4 WEST, S.M. tft I z TRACT 8 73 NORTHERN j DANCER 14o..1 SECTION 2 Q SEC 2601.38' Q. 3 t e. I V 0:.•.."4 a,,. co P �z o -g� r i i 2 :1 WEST 5 F S CTICIN 11 t P12 SECTIONS 12 �,�ot+l rti� SEC I'11:ASURED DATA 42.5' 4 a 49i,. .a L rJ izzcoRts DATA N 9D'00'et3" W Aroref 1 L S ilinn.ilon.;df,iueli,iup. i,u 8Tie.GnIIe?& 811GiN W-Te L HEcodemue MEM vienva AT ME .1• II o R vs sower. 7 Ro.91i36 -S Av ASBUILT SURVEY CERTIFICATE: covEl Sy �h 14 S1411 as s t oTr a i N °ER Mr DIRE CT supERVIEIO HAvE PERPO 1ED A tie.Act Is, 3Ect(a+11 fid.N614I1 11 NoRtl'1. ROUGE 4 WEet, B.M. AND Ti-t INFoIRHATIoN PREeENTED ON T1418 pgAL.11NG Is TRUE A CORRECT T TO THE BEST OF MY I<NOL1LEOGE. NORTHERN DANCER No: i acjk compailii PERMIT DRAWING i. ,.lu o fifer, slut tmi *MW. NC +b ka 2 an a, -sdeo 641 m WO -w ,0-44,0/6 1 "0 I000 I P' 1 i•k tAN P °m"' 7L.N °"'O APRIL lo, 2006 k IA ,05- 14- 01141WL1C7 1 J Daily Drilling Report Sample for rm Cat Northern Dancer #1 Page 1 of 2 Maunder, Thomas E (DOA) From: Corri Feige [ags @mtaonline.net] Sent: Friday, January 25, 2008 10:35 AM To: Maunder, Thomas E (DOA) Subject: RE: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Hi Tom I also found the summaries that we were emailing to John Crisp and Winton. I'll forward those to you presently. They will not have the cost information and are in more of a narrative form, taken from the drillers daily sheets. Corri From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Friday, January 25, 2008 10:29 AM To: Corri Feige Subject: RE: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Corri, That looks to have sufficient information. One thing, generally cost information is not included in the reports we send to file. In addition to the cost sheet, there is a daily and cumulative cost shown on the report. CaII or message with any questions. Tom Maunder, PE AOGCC From: Corri Feige [mailto:ags @mtaonline.net] Sent: Friday, January 25, 2008 10:13 AM To: Maunder, Thomas E (DOA) Subject: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Importance: High Hi Tom. Please see attached Daily Drilling Report. If this does not contain the information that you need, please let me know what additionally you would require and we will get it put together. Have a nice weekend. Cheers, Corri 2/17/2008 ID DAILY DRILLING REPORT Operator Storm Cat Energy Operation Run GYRO for deviation Depth 1,451 Date 02/27/06 Day 14 PTD IDMC WOB 0 Well Northern Dancer #1 AFE AK05001 CMC i RPM 0 Legate S1 T17N R4W Seward Mer. DWC 24HrFtge 3 Pump Psi. 0 Weather Clear Cold CWC 0.00 Pen/Rate #DIV /0! Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt On Out) 8.8 Gel ,Ports) 1 Bit #4 Bit Bit Near Stab 5.04 Vis (In Out) 42 Lime Liner 5" Size 8 1/2" Size X/O 2.00 PV/YP 13/10 Caustic Stroke 10" MFG Reed MFG 3 DC's 89.78 Gels 2/7/2012 Bicarb SPM Type 011 Type X/O 2.15 PH/Cake 9.5/2 Bar GPM SIN L45742 SIN 1-4.5 HWDP 30.09 Oil/Sand 0/.1 LIG Pump it 2 Jets 3/15's Jets X/O 1.76 Solids 3.7 Baranex Liner 5.5" Out Out Jars 32.08 WL 10.4 Extend Stroke 9" In 950 In X/O 0.93 CA/CL 120/600 Citric SPM Footage Footage 6-DC's 181.29 Filler Fibe,SD GPM Hours Hours 14-4.5 HWDP 423.43 Time Distribution TGPM 0 Ft/Hr #DIV /01 Ft/Hr #DIV /0! XJO's Ghost 12.74 Activity Previous Daily Comm AV/DP Grade 4 HWDP 120.46 Drifting 651/2 65 1/2 AV /DC Hours On Lit ology Total BHA 901.75 Survey 31/2 31/2 HSI BHA 18 DC/OD 6.25 Ser Rig 2 2 JetVel Motor DC/ID 2.2500 Trip 2212 1 23 1/2 ECD Shook BG Gas WT/FT 68# W &R 16 16 Hydstc Jars 18 C Gas DC/Con. 41/2" H90 Cut Ori Line 0 0 Casing BOP Trip Gas DP /Con. 4 12" XH Repairs 14 14 Size 95/8 Deviation Weights DPCap 0.01422 CkdCond 27 21 1/2 48 1/2 Depth 950' 100-.86 200-.37 BHA NT DC Cap. 0.00491 Cementers 312 31/2 Burst 5750# 300' -.72 400' -.59 DP/WT DP/Hole WOC 19 19 Size 500-.9 600-1.68 String Wt DP/Csg. Di Cement 0 0 Depth 700- 2.13 800-2.88 Pick UP DC/Hole Run Csg 2612 261/2 Burst 9003.37 1000-3.95 Slack Off Total Cap. 0.02 NU BOP 281/2 281/2 Liner 1100-4.28 1200' -5.19 Drag 0 PVT Weld Head 6 6 ID 8.835 13005.9 1400-6.99 Torque STR/Cap. 0.02 PresTest 19 191/2 Drift 8.679 #2stk/bit #1sWbit ANN/Cap. 0.00 Jet Pits 0 0 Test 2500# #2stk/snu #tstklsur System Total 0.02 Fishing 0 0 Accidents None Log 0 0 Safety meetings: Slip, falls, trips, and maintenance Other(Gyro) 58 1 1/2 60 Awaenes of new operations (wirelkte) Total 312 24 336 Man Hours Hands Hours Worked Previous Fours Daily Hours Cumulative fours Total Man Rig 15 12 2,340 180 2,520 Flours Toolpusher 2 12 312 24 336 Company Man 1 24 306 24 330 Mud Logger 2 12 132 24 156 Casing Crew 56 0 56 3,818 Cementers 56 0 56 Mud Engineer 1 24 312 24 336 Other 28 0 28 Daily/Total Haul off 184.6 1 Daily/Total Shale 1 Bbgasp JSTR/FavOisp From To Total SPR Strokes/Pressure 11 I Strokes/Pressure 92 0000 2130 21 12 Circulate hole inside surface casing. W/O Sperry Tools to gyro well. 2130 2230 1 Run in hole to 1451'. Circulate condition hole for Gyro (Tools on location) 2230 2400 1 1/2 RIO Alaska Pipe Recovery E -line unit and P10 Sperry Gyro tool. Go in hole and run gyro stating at surface. Take reading at surface and every 100' to 1400 with foal reading at 1440'. Well is 7.69 degrees off vertical fit 1440'. Well is heading to south with 67' displacement. 100 03! .86 1200' 051 5.19 200'x.37 1300'5.9 300' .72 1400' 03)6.99 400' (81.59 1440' 7.59 500' 600'1.66 700' 2.13 800' (a( 2.88 900' 05) 3.37 1000' 1100'4.28 Other man hours Sperry Sun Men (3) 6 18 Supervisor Tom Majors Wireline Unit (2) 6 12 Contractor Kuukpik 9 5 Fuel en Hand Fuel Used Fuel used Feel used Tootpueher Ono Previous Only Cumulative Mud Company Baroid 4,550 13,277 950 14,227 Total 30 Mud Engineer Hilton I )TAL 24 Rig Phone 907- 223 -2804 Mobile 9 307- 752 -2539 Crews Full IRON CREEK ENERGY GROUP I RON CREEK CODY,WYOMING R 5I0 MCAT Energy Group (307) 587- 7232 1 Maunder, Thomas E (DOA) From: Corri Feige [ags @mtaonline.net] Sent: Friday, January 25, 2008 10:37 AM To: Maunder, Thomas E (DOA) Subject: FW: Storm Cat Northern Dancer #1 Weekly Update Importance: High Attachments: Picture (Metafile) From: Corn Feige [mailto:ags @mtaonline.net] Sent: Friday, March 03, 2006 2:50 PM To: 'john_crisp@admin.state.ak.us'; 'winton aubert@admin.state.ak.us' Cc: 'Tom Majors' Subject: Storm Cat Northern Dancer #1 Weekly Update Importance: High Good day, Gentlemen. Provided below is the weekly summary for the Northern Dancer L 2/26/06: Hole diameter 8.5 Depth 1451', Mud wt 8.85. Drilling suspended in order to correct deviation in hole. Ordered directional tool to straighten hole. Circulated hole without tools. 2/27/06: Depth 1451', Mud wt 8.8. Directional tools on location (Alaska Pipe Recovery E -line unit Sperry Gyro tool). Ran gyro from surface to 1440', with readings every 100', and a final reading at 1440'. Well was 7.69° off vertical at 1440', heading south with a 67' displacement. 2/28/06: Depth 1848', Mud wt 9. Correcting deviation. Drilled ahead, running periodic gyro surveys to gradually bring hole back to vertical. Hole deviation at 0.18° at 1803'. Surveyed again at 1848' bit depth. 3/01 /06: Depth 2399', Mud wt 9.1. Drilled ahead, surveying at approximately 30' intervals. Well staying within 1° of vertical. Changed swab on pump #1 at 2337'. 3/02/06: Hole diameter 8.5 Depth 3050', Mud wt 9.15. Continued deviation surveys as drilled ahead with no problems. Well maintaining vertical within 1°. 3/03/06: 0800 morning report from rig indicates depth 3200' and drilling ahead with no problems. BOP test scheduled for Saturday, 3/4/06. If you have questions about the information contained in this report, please contact Tom Majors at 307- 752 -2539 or myself at 907 -232 -1192. Sincerely, Corri Corri Feige 1 II Maunder, Thomas E (DOA) From: Corri Feige lags c©mtaonline.net] Sent: Friday, January 25, 2008 10:36 AM To: Maunder, Thomas E (DOA) Subject: FW: Storm Cat Northern Dancer #1 Weekly Update Attachments: Picture (Metafile) From Corri Feige [mailto:ags(amtaonline.net] Sent: Friday, March 10, 2006 9:45 AM To: 'john_crisp @admin.state.ak.us'; 'winton aubert @admin.state.ak.us' Cc: Tom Majors' Subject: Storm Cat Northern Dancer #1 Weekly Update Good morning, Gentlemen. Storm Cat's weekly update is as follows: 3/3/06: Hole diameter 8.5 hole depth 3817', mud weight 9.2 Drilled interval from 3050' to 3817' without problems. Periodic deviation surveys continued with well staying within 1.5 degrees. 3/4/06: Hole depth 4002', mud weight 9.2 Drilled 3817' to 3998' before TOH for weekly BOP test. BOP test completed with no problems. TIH with bit #6 and did a precautionary ream from 3940' to 3998', then drilled ahead to 4002'. 3/5/06: Hole diameter 8.5 hole depth 4550', mud weight 9.15 Drilled interval 4002' to 4550'. Changed pump swabs in #1 #2. Deviation survey at 4305' indicated 2.75 degree deviation. 3/6/06: Hole depth 4906' mud weight 9.15 Drilled 8.5" hole from 4550' to 4704'. Deviation survey at 4649' indicated 2.5 degree deviation. Drilled from 4704' to 4906 Deviation survey at 4830' indicated 3 degree Y g ree deviation. Circulated bottoms up and spotted LCM pill. 3/7/06: Hole depth 5112', mud weight 9.1 Changed bit and serviced rig. TIH to 4863' and circulated bottoms up. TIH to 4906' and showed no fill in the hole. Drilled new hole from 4906' to 5112'. 3/8/06: Hole diameter 8.5 hole depth 5518', mud weight 9.15 Drilled ahead 5112' to 5414'. Deviation of 4.5 degrees at 5353'. Drilled to 5444' and circulated while changing piston in pump #2. Drilled ahead to 5518'. 3/9/06: Hole depth 5843', mud weight 9.3 Drilled from 5518' to 5570'. Conditioned mud and drilled to 5574'. Serviced pump #2 then drilled 5574' to 5818', and began to increase mud weight in prep for bit trip and weekly BOP test. Deviation survey at 5782' showed 3 degrees. Drilled to 5834' and did rig repair on top drive and change 'BOP. Drilled ahead to 5843.' 3/10/06: As of 0700 this morning, hole depth at 5950' and mud weight is at 9.5 Will TOH for bit change and weekly BOP test today. Y If you have any questions, or need any additional information, please contact either myself at (907) 232 -1192 or Tom Majors at (307) 752 -2539. Sincerely, Corti Feige 1 Maunder, Thomas E (DOA) From: Corri Feige fags c©mtaonline.net] Sent: Friday, January 25, 2008 10 :36 AM To: Maunder, Thomas E (DOA) Subject: FW: Weekly Report Storm Cat's Northern Dancer #1 Attachments: Picture (Metafile) From: Corri Feige [mailto:ags@)mtaonline.net] Sent: Friday, March 17, 2006 11:23 AM To: 'john_crisp@admin.state.ak.us'; winton_aubert@admin.state.ak.us' Cc: 'Tom Majors' Subject: Weekly Report Storm Cat's Northern Dancer #1 Good morning. Storm Cat's weekly report on the Northern Dancer #1 is as follows: 3/10/06: Hole diameter 8.5 Hole depth 5967', Mud Weight 10.3 Drilled hole from 5843' to 5967' then circulated and conditioned mud. Mud weight was increased from 9.5# to 10.3# over the course of the day in preparation for TOH for weekly BOP test. Flow was halted at mud weight of 10.1#, increased to 10.3# for trip_ margin: 3/11/06: Hole depth 5967', Mud weight 10.8 JohrrCrisp on location for BOP test. Prepared for BOP test, but well flowing again. Circulated and conditioned mud, increasing weight to 10.8 Detected salt water entry at 5967' (chlorides went from 600ppm to 3000ppm). Treated mud for clabbering and salt water. 3/12/06: Hole depth 5967', Mud weight 11.0 Circulated hole and increased mud weight to 11.0# to control flow in well. Tripped out of hole for BOP test. Tested BOP: 250 #13500# on all equipment, Koomey test, choke manifold, kill valves, HCT, Hydrii, top rams, IBOP, floor valve and blind rams. 3/13/06: Hole diameter 8.5 Hole depth 6057', Mud weight 10.8, Tested Dart Valve (250/3500). Attempted to test lower pipe rams changed out lower pipe rams and tested (250/3500). Made up bit #8 (Reed 8'/2" EHP61). TIH to 5700' and circulated 11.2# pill off bottom. Loss of fluid while circulating 8 bbls. TIH to 5967' and drilled ahead to 6057'. 3/14/06: Hole depth 6233', Mud weight 10.85 Drilled well from 6057' to 6233'. TD well at 6233'. Prepared to log well. Circulated and conditioned mud, pumped LCM sweep. Loggers arrived on location. Prepared to spot weighted pill on bottom and started TOOH at slow rate. 3/15/06: Hole depth 6233', Mud weight 10.9 Circulated and conditioned mud. Pulled pipe to 5700' to spot 11.2# weight pill. TOOH for open hole logs. Schlumberger ran Platform Express and FMI- Borehole Comp. Sonic. Stuck tool on FMI run. Freed tool and stopped FM1 run. TOOH and found large chuck of shale stuck in pad. Released loggers. TIH with drill string, circulated and conditioned hole. 3/16/06: Hole depth 6233', mud weight 10.8 TIH with 8.5" bit to 6220'. Tag fill at 6220'- washed to bottom at 6233' and circulated bottoms up. Circulated and conditioned hole while waiting for cement to be blended and delivered to location. Pulled up -hole to 5700' and spotted 11.2# weighted pill. TOOH with drill pipe. 3/17/06: As of 0700 this morning, picking up casing crew tools to start running 5V2 casing. As always, should you have any questions about the information contained in this summary, please contact either Tom Majors at 307- 752 -2539 or myself at 907 -232 -1192. Sincerely, Corri Feige 1 Northern Dancer #1 1 Subject: Northern Dancer #1 From: Winton Aubert <winton_aubert a@admin.state.ak.us> Date: Mon, 12 Jun 2006 09:01:38 -0800 To: Robert J Fleckenstein <bob f ecdens r?admin.state.ak.us> To file: Northern Dancer #1 (PTD 206 -004) is currently inactive, awaiting completion operations. Per telephone conversation with George Pollock on 6/12/2006, the Aurora Well Service rig is scheduled for the completion. The rig is available about 9/1/2006. WGA 1 of 1 6/12/2006 10:03 AM 4110 1110 ri 7NC t1...1 APR 1 2 'z', ;;0 April 12 2006 Alaska Oil Mr. Winton Aubert Petroleum Engineer Alaska Oil Gas Conservation Commission 333 W. 7 Avenue, Suite 100 Anchorage, Alaska 99501 Re: Northern Dancer #1 Interim Well Completion Submission Dear Mr. Aubert: On behalf of Storm Cat Energy Corporation, I am pleased to submit this interim Well Completion Report and Log (Form 10 -407) for the Northern Dancer #1 well. Drilling activities were completed in late March 2006 and subsequent well completion activities are anticipated to occur within 60 to 90 days. Accompanying this letter are the completed 10 -407 form, the stamped survey plat, and a copy of the mud log. Core chip samples were previously submitted to AOGCC on March 29, 2006. Electronic copies of the log files will be delivered as a separate submission. Please contact me if you require any further information at 907 273 -1640. Regards, George Pollock Construction/Operations Manager Baker Energy Alaska enclosures 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: ND Gas -IA Plugged Li Abandoned Suspended WAG rib. Wei Class: 20MC 25.105 20AAC 25.110 Developrnent Exploratory 0 GINJ WINJ WDSPL 0 No. of Completions Other Service Stratigraphic Test 0 2, Operator Name: Stor► Cat Energy Corporation 5, Date Comp.. Susp., or 12. Parmil to Dill Number: Abend.: In Process 206-004 Address: 6. Delae Spudded: 13. API Number: 1125 17th Street, Suite 2310 Denver. CO 80202 February 14, 2006 50-009- 20031 -00 4a. Location of Walt (Governmental Section): 7. Date TD Reached: 14, Well Name and Number: Surface: 2287* FSL 2601' FEL,S 1 T17N R4W SM March 14, 2006 Ncdhern Dancer 81 op of Productive Horizon: 8. KB Elevation (ft) 15. Fta ktiPoot(s) 2287* FSL 2601' FELS 1 T17N R4W SM 218 elevation Total Depth: 9. Plug Back DeptiVI)+TVD) 228T FSL 2601' FEL,S 1 T17N R4W SM 6097* KB MD 4b, Location of Well (State Base Plane Coordinates): 10. To Depth (MD TVD): 16. Property Designation: x- 1654564.45 y- 2773548.19 Zone- 4 6233' KB MD MI-IT 9300054 TPt: x- 1654564.45 y- 2773546.19 Zone- 4 11. Depth Where SSSV Set 17. Land Use Permit Total Depth: x- 1854564.45 y- 2773546.19 Zone- 4 NA NA 18. Directorial Survey: Yes p No gg 19. Water Depth, If Offshore: 20. Thickness of Permafrost NA feet MSL NA 21. Logs Run: Schtumberger Platfoma Express (Array- lrui -Litho Density -Comp Neskon -GR -Cat) FMI- &xehote Comp Sonic aborted TD to 5466' 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD CASING GRADE AMOUNT FT. TOP BOTTOM TOP 1 BOTTOM HOLE SIZE cEME N r1NG R E. ORD PULLED 133/8" 688 )1.-80 Surface 243' KB Surface 243' KB 15' 25 sks Class G /Cat. Ch1.15.8 None 9 5!8" 40# HP -110 Surface 950' KB Surface 950` KB 12114" 141 sks 12.8 ppg lead and None .5" 17# L-80 Surface 6197 KB Surface 6097' KB 8.5' 496 sks 15.8# set stage tool None Perforations open to Production (MD TVD of Top and Bottom 24. TUBING RECORD interval, Size and Number, if none, state "none': SIZE DEPTH SET (MD) PACKER SET (MD) none 25. ACID, FRACTURE, CEMENT SQUEEZE. ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED rlorle 26. PRODUCTION TEST Date First Production: (Ms4hod of Operation (Flowing, gas WI, etc.): NA NA Date of Test Hours Tested: Production for obi: Gas -MCF: Water -Bbl: r Cholse Size: (Gas -OII Ralto: Test Period FimnrTutlirlg 9 Pres A Czfcldaied 6 -Bb1: Gas -MCF: Water -Bbl OB Gravity API (corr): 24 -Hour Rabe r 7 CORE DATA Brief description of lithology. porosity, fractures, apparent dips and presence of olt, gas or water (attach separate sheet, 8 necessary). core chips; If none, state "none" chips previously submitted on March 29, 2006. Farm 10-407 Revised 12/2003 CONTINUED ON REVERSE 28. GEOLOGIC MARKERS 29. FORMATION TESTS NAME MD TVD Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state See attached mud log. "None". 30. List of Attachments: Survey Plat Mud Log 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Keith Knapstad Tithe: Vice President Operations, USA Signature: i/4 Phone: 303- 991 -5070 Date: April 11, 2006 INSTRUCTIONS General: This form is designed for submitting a complete and correct well oompletlon report and log on all types of lands and leases In Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10 -404 well sundry report when the downhole well design Is changed. Item la: Classification of Service wells: Gas Injection. Water Injection, Water- Alternating -Gas Injection, Salt Water Disposal, Water Supply for injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given In other spaces on this form and In any attachments. item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the locatlon of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing Intervals for only the Interval reported in Item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing. Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: If no cores taken, indicate "none Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 NOM ii t. cottosto 85 WW1 Ali s tura as A4Aelc4 arms a z 8 t+1 bl zoos 4 OM di hood aro YAL 2.6E0 01a OOOiiraikaTt s ARE 140 at a ALL ou4Anta a Alai sRQ' *4 ILL elootirf MEET. 4. Va faiCAL DAI% 41s S A9UD C04 POMO ee otictot4 t o01iaR 2I au 300.21044:424110 NON1NERN bANCER Noi LacATito nwr NoittN totes 4 two 8ot4N Lela Ct' e TN* 1 AND *or taw 184:84 ma NA* Lam co eagatTt7iL iZ coxliov 1 ip1Yi AT LAT. orarsoAsetkOti Law krol+otooesit4 t 5 f8 4 0 �TCFB :+s gagibtoa4,ia n eyi 1a0tND etEVAttvAucN ak I1LY4' i" iii iMILE SECTION 35 SOH 36 SEC Tim MN N 89'4V W 5 268.12 4 (CALC) N0 N M sELntOtN 1 TOMS14Ip 17 NORTH. RANGE 4 WEST, S.M. z TRAC B DANCER NORTHERN S g r DANCES I SEC SECTION 2 1 r n 60 t lb t '42 NI i.,.. 444 VP g1 2 A r ii... 4 t 1 s sEcT<orN to �c LEGEND: pp. :,n 1.21A01 7 DAM R.S' At 4. >i►. $20001481 DatA N 90'00•O0" W .,�.a; Aare v TN6 N1c rtPla CP 12111 11~Y.. 140.0100-3 ASBUILT SURVEY CER 1FICA'ME: PiY %1 ,n" t +a7 i tas Y v� 4 pAN I t dv MAR l !r DINE= eut ievIblGN.1&4vE i D A t t 11 NORtit Raiii6E 4 4.Reet 614. .E1), losimfato oN tiffs DRA1112* mug 1 CDI T ro Ti E! Rev AF NORTHERN DANCER No: t a i 1o, 200 corn= PER bRA INN "..,.t� �kli >M tea. a a. i ial000' 1:414 j vr e A4 13 ,ob- 14- ou.IP.DU S DAILY DRILLING REPORT Operator Storm Cat Energy Operation R/U pum water mix spud mud Depth 59 Date 02/14/06 Day* 1 PTD DMC WOB Well Northern Dancer #1 AFE# AK05001 CMC r-< RPM Legals St- T17N -R4W SM DWC 24HrFtge Pump Psi. Weather Clear Cold CWC <2 Hrs /Dri Pen/Rate 'D'3 i1I Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.6 Gel Pump Bit 1 Bit Bit 1.48 Vis (In Out) 90 Lime Liner Size 16" Size Bit Sub 2.10 PV/YP Caustic Stroke MFG Reed MFG X/O 195 I Gels Soda ash SPM Type T11C Type X/O 0 92 PH /Cake Bar GPM S/N L15605 S/N 1 -DC 30.30 011/Sand LIG Pump Jets 3/20 -1/10 Jets Kelly (Top Dr) Solids NewPHPA Liner Out Out WL Polymer Stroke In 59' In CA/CL PAC SPM Footage Footage Filler Fiber /SD GPM Hours Hours Time Distribution TGPM Ft/Hr l,h Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling AV /DC Hours On Lithology Total BHA 4 Survey f HSI BHA DC /OD 6.25 SerRig JetVel Motor DC /ID Trip ECD Shock BG Gas WT /FT w &R Hydstc Jars C Gas DC/Con Cut Dd Line Casing BOP Tnp Gas DP /Con. Repairs r' Size 18" Deviation Weights DPCap Circ/Cond Depth 59'KB BHA/WT DC Cap. Cementers n Burst DPANT DP /Hole WOC t Size String Wt 22,000 DP /Csq Dd Cement Depth Pick UP DC/Hole Run Csg Burst Slack Off Total Cap. x NU BOP Liner Drag 1 2:' PVT Weld Head Top Torque STR/Cap. Pres Test Burst #2stkiba #1stk/bit ANN /Cap .'1 Jet Pits Test #2stk/sur #tstk/sur System Total Fishing Accidents None Log Other 0 24 Total J4 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 Man Hours Toolpusher 2 12 Company Man 1 18 Mud Logger Casing Crew 444 Cementers Mud Engineer 1 24 Other Daily/Total From Haul To off 1 Total SPR Strokes/Pe sure h #1 I S #y (STR/FIII/Disp 0 00 0600 6 R/U tongs, Spinners, Elevators, Bails, Flow Line 06:00 12.00 6 Fill mud pits w/ water to spud Check all coons for leaks run fluid thru all lines. R/U mudline gas detectors- bleeder line geronimo line 12:00 13 00 1 Install saver sub on top dnve. Continue filling pits w/ water 13:00 18 00 5 Continue filling pits water tank w/ water. Test run mud pumps Move BHA to pipe racks. Install blind flange on flow line kill line 18.00 24.00 6 Mix Baroid gel in pits. Mix spud mud P/U 16" Mill Tooth bit BHA. TIH tap a 59'. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Jerry Otto Previous Daily Cumulative Mud Company Baroid 6,200 300 600 Total Mud Engineer J. Richardson TOTAL Rig Phone Mobile Crews Full 1 IRON CREEK ENERGY GROUP I CODY, WYOMING 4 +3 (307)587 -7232 III 1 1 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling 16" conductor hole Depth 79' Date 02/15/06 Day 2 PTD DMC :'2. WOB 4 Well Northern Dancer #1 AFE AK05001 CMC _:.2 RPM 70 Legals Sl- T17N -R4W Seward Mer DWC 7 24HrFtge 20 Pump Psi. 230# Weather Cool /cloudy CWC Hrs /Drl 1.50 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.5 Gel 174 Pump #1 Bit #1 Bit Bit 1.48 Vis (in Out) 118 Lime Liner 5" Size 16" Size Bit Sub 2.10 PV/YP 20/90 Caustic Stroke 10" MFG Reed MFG X/O 195 Gels 25/50/0 Soda ash SPM 70 Type T11C Type X/O 0.92 PH /Cake 8/0 Bar GPM 171 S/N L15605 S/N 2 -DC 30.30 Oil /Sand 0/0 LIG Pump #2 Jets 3/20 -1/10 Jets 30.02 Solids 2 7 NewPHPA Liner 5.5" Out Out WL 10 Polymer Stroke 9" In 59' In CA/CL PAC SPM 70 Footage 0 Footage Filler Fiber /SD GPM 187 Hours 1.50 Hours Time Distribution TGPM FUHr FUHr r;.i';i',: Activity Previous Daily Cumm AV /DP 29.7 Grade Dnning 1 1/2 1 -2 AV /DC 40.4 Hours On Lithology Total BHA Survey HSI BHA DC /OD 6 375 SerRig 33 JetVel Motor DC /ID 68# Trip i. ECD Shock BG Gas WT /FT 684 W &R Hydstc 35# Jars C Gas DC /Con 4 1/2" H90 Cut Dd Line ii Casing BOP Trip Gas DP /Con 4 1/2" XH Repairs i Size 18" Deviation Weights DPCap 001422 Circ/Cond Depth 59'KB BHANVT DC Cap. 0 00491 Cementers Burst DP/WT DP /Hole wOC Size Stnnq Wt 22,000 DP/Csg. Dd Cement i Depth Pick UP DC /Hole Run Csg Burst Slack Off Total Cap. NU BOP 3 Liner Drag i PVT Weld Head Top Torque 1000 STR/Cap. Pres Test Burst #2stk/bit distk/bit ANN /Cap. Jet Pits a Test #2stk/sur #1stk/sur System Total Fishing Accidents None Log Other 24 221/2 Total _`4 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 180 ,''t Man Hours Toolpusher 2 12 24 Company Man 1 24 18 Mud Logger Casing Crew Cementers Mud Engineer 1 24 24 Other Daily/Total Haul off Daily/Total Shale I Bbl/Disp ISTR /Fill/Disp From To Total SPR Strokes /Pressure #1 Strokes /Pressure #2 0'00 6:00 6 Continue mixing mud to build volume. Unload 13 3/8" casing on pipe racks. W/O casing (2 joints) 6'00 12 00 6 Pressure test surface lines Check system for leaks. W/O casing 12:00 22:30 10 1/2 W/O casing. N/U diverter line knife valve for diverter. Circ condition mud. Unload casing strap. 22'30 24:00 1 1/2 Spud and drill 16" hole o(� 2230 hours. Drill to 79'. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 5,700 900 500 Total Mud Engineer Richardson TOTAL Rig Phone 907 223 -2804 Mobile 307-752.2539 Crews Full C Oxon.. exISMCornFegrE,Oocumn./cere*nbne...nc■ a: ■bowrn Dam AI Daly co, RePPIS MYel Canc.!, Cry 2 +.10.^9 R.P IRON CREEK ENERGY GROUP I CODY, WYOMING s} (307) 587 -7232 i DAILY DRILLING REPORT Operator Storm Cat Energy Operation Running 13 3/8" casing Depth 255' Date 02/16/06 Day 3 PTD DMC Y WOB 6000 Well Northern Dancer #1 AFE AK05001 CMC a -,:j" RPM 70/80 Legals S1- T17N -R4W Seward Mer DWC 24HrFtge 196 Pump Psi. 300# Weather Cool /Cloudy CWC i Hrs/Drl 10.50 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.8# Gel 155 Pump #1 Bit 1 Bit 16" Bit 1.48 vis (In Out) 237 Lime Liner 5" Size 16" Size Bit Sub 2.10 PV/VP 14/61 Caustic Stroke 10" MFG Reed MFG X/O 1.95 Gels 40/49/0 Soda ash SPM 70 Type T11C Type X/O 0.92 PH /Cake 8/0 Bar GPM 171 S/N L15605 S/N 7 6.25 "DC 21090 Oil /Sand 0/2 LIG Pump #2 Jets 3/20 -1 -10 Jets X/O 2.00 Solids 3 7 NewPHPA Liner 5 5" Out 255' Out X/O 1 11 WL 10 Polymer Stroke 9" In 59' In 1 4.5" HWDP 30 00 CA/CL PAC SPM 70 Footage 196' Footage Filler Fiber /SD GPM 187 Hours 12.00 Hours Time Distribution TGPM c Ft/Hr _Ft/Hr Activity Previous Daily Cumm AV /DP Grade Dulling 1 1/2 10 1/2 AV /DC Hours On Lithology Total BHA Survey 1 1/2 r.. HSI BHA Gravel Boulders DC /OD 6.25 Ser Rig 1/2 J. j JetVel Motor Sand DC /ID 22500 Trip 2 1/2 I. ECD Shock BG Gas 0 WT /FT 68# W&R Hydstc 116 7# Jars C Gas 0 DC /Con. 4 1/2" H90 Cut Dr! Line Casing BOP Trip Gas 0 DP /Con. 4 1/2" XH Repairs 2 J Size 18" Deviation Weights DPCap 0 01422 Circ/Cond 5 Depth 59' KB 126' -.3/4 BHA/WT DC Cap 0 00491 Cementers Burst 245' .95 DP/WT DP /Hole WOC Size Stnnq Wt 28,000 DP /Csq Dd Cement Depth Pick UP 32,000 DC /Hole Run Csg 2 Burst Slack Off 28,000 Total Cap NU BOP i Liner Drag PVT Weld Head J Top Torque STR/Cap. Pres Test Burst #2stk/bit #lstk/bit ANN /Cap. Jet Pits Test #2stk/sur #lstk/sur _System Total Fishing r Accidents None Log Other 46 1/2 0 Total .4 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 360 l, Man Hours Toolpusher 2 12 48 Company Man 1 24 42 Mud Logger Casing Crew r s Cementers Mud Engineer 1 24 48 Other Daily/Total Haul off I Daily/Total Shale Bbl/Disp STR/Fill/Disp From To Total SPR Strokes/Pressure #1 Strokes /Pressure #2 I 0:00 3:00 3 Drill 16" hole from 79' to 102' (Gravel Boulders) 3:00 3:30 1/2 Rig service troubleshoot loose wire on brake board 3•30 6:00 2 1/2 Condition mud circulate Rig Repair. 6.00 9.30 3 1/2 Dnll 16" from 102' to 156' 9:30 10:00 1/2 Run deviation survey ofd 126' -.75 10 00 1200 2 Dnll 16" hole from 156' to 237' 12;00 14 00 2 Drill 16" hole from 237' to 255' (casing point) 14:00 15.30 1 1/2 Condition mud and circulate high viscosity pill for hole clean 15.30 16 00 1/2 Deviation survey misnrn (51 245' 1600 16 30 1/2 Condition mud and pump high viscosity pill 9' fill 16.30 1700 1/2 Deviation survey a 245' .95 17.00 17 30 1/2 Condition mud circulate. 17 30 1800 1/2 Make short trip pull 2 stands back to bottom circulate bottoms up 1800 20 00 2 TOOH break off 16" bit to run casing 20 00 22:00 2 R/U GBR casing Crew to run 13 3/8" casing 22 00 24:00 2 Make up float equipment Run 2 jts of 133/8 Tag at bottom of conductor casing 59" KB Work thru tight spot Run to 88'. Unable to get thru Other man hours Supervisor Tom Majors Contractor Kuukpik #5 Fuel on Hand Fuel Used Fuel used Fuel used Previous Daily Cumulative Toolpusher Otto Mud Company Darold 4,400 1,400 1,300 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile# 307. 752.2539 _Crews Full n...,,., ".d W "s+w m..n.+a K...A�„ s wm.,, Dance <1 „a """amoa.I do Dilsng "w.,, irw,"„Darc"., Ow RV.. IRON CREEK ENERGY GROUP I CODY, WYOMING ,u (307)587 -7232 0 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Reaming Conductor Hole Depth 255' Date 02/17/06 Day# 4 PTD DMC S WOB 0 Well Northern Dancer #1 AFE# AK05001 CMC i RPM BO Legals S1- T17N -R4W seward Mer. DWC 24HrFtge 0 Pump Psi. 325 Weather Cool/ Cloudy CWC ,--'s Hrs /Drl 0.00 Pen /Rate 9. ^t Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.6# Gel 10 Pump #1 Bit #1 Bit 16" Bit 1 48 Vis (In Out) 200 Lime Liner 5" Size 16" Size Bit Sub 2.10 PV/YP 14/51 Caustic Stroke 10" MFG Reed MFG X/O 195 Gels 30/37/0 Soda ash SPM 70 Type T11C Type X/O 0.92 PH /Cake 7.5/0 Bar GPM 171 S/N L15605 S/N X/O 1.54 Oil /Sand 0/1 LIG Pump #2 Jets 3/20 -1/10 Jets 16" Stabilizer 4.43 Solids 3 7 NewPHPA Liner 5 5" Out 255' Out 16" Stabilizer 5 10 WL 10 Polymer Stroke 9" In 59' In X/O 1.48 CA/CL PAC SPM 70 Footage 196' Footage 7 -DC's 210 90 Filler Fiber /SD 5sx GPM 187 Hours 12 00 Hours Time Distribution TGPM Ft/Hr _Ft/Hr ;V :0 Activity Previous Daily Cumm AV /DP Grade 1 -1 -E -1 Dnlhng 12 AV /DC Hours On Lithology Total BHA Or,ri Survey 1 1/2 HSI BHA DC /OD 6 25 SerRig 1/2 1/2 JetVel Motor DC/ID 22500 Trip 2 1/2 3 1/2 ECD Shock BG Gas WT /FT 68# W &R 6 Hydstc 114# Jars C Gas DC /Con. 4 1/2" H90 Cut DO Line Casing BOP Trip Gas DP /Con. 4 1/2" XH Repairs 2 Size 18" Deviation Weights DPCap 001 Circ/Cond 5 1/2 Depth 59' KB BHA/WT DC Cap. 0 00 Cementers Burst DP/WT DP /Hole WOC Size String Wt DP /Csq. Chi Cement Depth Pick UP DC/Hole Run Csg 2 9 1/2 Burst Slack Off Total Cap. NU BOP Liner Drag PVT Weld Head ii Top Torque STR/Cap Pres Test Burst #2stk/bit #lstk/bit ANN /Cap. Jet Pits Test #2stk/sur #istk/sur System Total Fishing Accidents None Log I' Other 461/2 4 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rio 15 12 540 Man Hours Toolpusher 2 12 72 Company Man 1 24 66 Mud Logger Casing Crew Cementers Mud Engineer 1 24 72 Other f 6 Daily/Total Haul off Daily/Total Shale 1 L Str /Di s p Pressure #2 ISTR/Fill /Disp I From To Total SPR Strokes /Pressure #1 0:00 2 00 2 Run 13 3/8" casing No Go a 3rd jt. (88') 2:00 5:00 3 TOOH UD casing 5:00 06'30 1 1/2 TIH w/ Bit 1 DC's to ream hole 6:30 7:00 1/2 Rig service 7:00 11'30 4 1/2 Reaming 88' to TD. 10' Fill on btm. 11'30 12:00 1/2 Condition mud circulate 12 00 14:30 2 1/2 Reaming w/ Bit 1 to 255' Tight 88' 14.30 15:30 1 TOOH standback dnll stnng to run casing 15 30 16.30 1 R/U GBR to wn casing 16:30 1900 2 1/2 Run 13 3/8" casing No Go o@ 88', Could not work past tight spot 19:00 21 2 TOOH UD casing Prepare to ream hole 21:00 24 00 3 P/U 2 16" Stabilizers and run tandem UD DC's from dernck to ream to bottom with. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Harold 3,600 2,700 800 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full =a,.." «"ns.",,. —.,i .,,,,c„+M." ".,.,.ea..r r. u.,, .o.�..,� ,w IRON CREEK ENERGY GROUP I[ CODY, WYOMING a t (307)587 -7232 le DAILY DRILLING REPORT Operator Storm Cat Energy Operation WOC a 255' Depth 255' Date 02/18/06 Day 5 PTD DMC WOB _Well Northern Dancer #1 AFE AKo5001 CMC i:'.1 RPM Legals S1- T17N -R4W Seward Mer. DWC 24HrFtge 0 Pump Psi. Weather Cool /Cloudy CWC Hrs/Drl 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.6 Gel 41 Pump 1 Bit #1 Bit 16 RR Bit 1.48 Vis (In Out) 140 Lime Liner 5" Size 16" Size Bit Sub 2.10 PV/YP 17/31 Caustic Stroke 10" MFG Reed MFG X/O 1.95 Gels 25/30/0 Soda ash SPM Type T1 1C Type X/O 0.92 i PH /Cake 8/0 Bar GPM S/N L15605 S/N X/O 1 54 Oil /Sand 0/1 LIG Pump 2 Jets 3/20's -1/10 Jets 16" Stabilizer 4.43 Solids 2.7 NewPHPA Liner 5.5" Out 255' Out 16" Stabilizer 5.10 WL 10 Polymer Stroke 9" In 59' In X/O 148 CA/CL PAC SPM Footage 196' Footage 7 -DC's 210.90 Filler Fiber /SD 26 -Jan GPM Hours 12.00 Hours Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling 12 AV /DC Hours On Lithology Total BHA Survey 11/2 HSI BHA DC /OD 625 Ser Rig 1 JetVel Motor DC /ID 2.2500 Trip 6 3 ECD Shock BG Gas WT /FT 68# W &R 6 8 1/2 Hydstc Jars C Gas DC /Con 4 1/2" H90 Cut Dri Line Casing BOP Trip Gas DP /Con. 4 1/2" XH Repairs 2 Size 18" Deviation Weights DPCap 0.01 Cur/Cond 5 1/2 3 Depth 59' KB BHANVT DC Cap 0.00 Cementers Burst DPNVT DP /Hole WOC O Size 13 3/8" String Wt DP /Csg. Ori Cement Depth 243' KB Pick UP DC /Hole Run Csg 11 1/2 4 Burst 3450# Slack Off Total Cap. NU BOP {i Liner Drag II PVT Weld Head i Top Torque STR/Cap. Pres Test Burst #25tk/bu #1stk/bit ANN /Cap. Jet Pits I, Test #2stk/sur #lstk/sur System Total Fishing Accidents None Log Other 50 1/2 5 1/2 Total 2 i.0 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 720 Man Hours Toolpusher 2 12 96 Company Man 1 24 90 1 Mud Logger Casing Crew 4 6 Cementers 4 6 Mud Engineer 1 24 96 Other Daily/Total Haul To Total SPR DailyfTotal l Strokes/Pressure Pressure #p ISTR/Fill /Disp I 0:00 1:00 1 P/U BHA DC's (2 -16" Stabilizers) X/O's 1 3:30 2 1/2 Ream 70' to 130' (Loss of mud came up in cellar from annulus of drive pipe) 3.30 4:00 1/2 Monitor trip tank for possible flow No Flow 4 00 1000 6 Ream 130' to 255' Tag Fill 230' (25') 10 00 10:30 1/2 Condition mud circulate 10.30 11:30 1 Short trips and tag for fill 1130 12:30 1 Condition mud circulate 12 30 13:30 1 TOOH break off lad 1 1330 14:30 1 R/U GBR casing crew to run conductor casing 14.30 16:30 2 Run 6 jts of 133/8" 68# BTC L80 247 86' KB. Ran w/ drive shoe on bottom Float collar 201' Ran 3 centralizers Land 243' KB. Make up cement head Chain down casing. 16 30 18.00 1 1/2 Circulate hole and reciprocate casing Hold pre cement job planning and safety meeting 18 00 19.00 1 Schlumberger pnmed pumps. Mixed mix water Pump 2 bbls. Pressure test surface lines to 1000# OK. Pump 1 gal red dye and 5 bbls water Pump 5 bbls water spacer. Mix and pump 225 sx Class G w/ Cal Chl. 15.8 ppq A 1 16 yield 44.5 bbls slurry Observe red dye surface Stop mix of cement. Drop top plug Clear lines w/ 2 bbls water. Switch to rig pump Displace w/ 28 bbls 12# gel. Land plug pressure to 400# Release pressure check float OK S/I casing WOC (12 hours minimum) 1900 24.00 5 R/DSchlumberger. WOC. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 8,500 3,500 1,100 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full c o.,.,,.,,.." ro 0,.. w wm..,, .,.,kw.Amawwwwm.,,�.....ww"� low., craw 1....,o-" 0 :M aw+ T IRON CREEK ENERGY GROUP t CODY, WYOMING a+ (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Break -out L/D Conductor BHA Depth 255' Date 02/19/06 Day# 6 PTD DMC s., WOB Well Northern Dancer #1 AFE AK05001 CMC RPM Legals S1- 117N-R4W Seward Mer. DWC t t: 24HrFtge 0 Pump Psi. Weather Cool/ Clear CWC �'1 /_Hrs /Drl 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.7 Gel 40 Pump 9 1 Bit Bit Vis (In Out) 90 Lime Liner 5" Size Size PV/YP Caustic Stroke 10" MFG MFG Gels Bicarb 6 SPM Type Type PH /Cake Bar GPM 2 S/N S/N Oil /Sand LIG Pump 5.5" Jets Jets Solids NewPHPA Liner 9" Out Out WL X -Tend 6 Stroke In In CA/CL Citric 3 SPM Footage Footage Filler Fiber /SD GPM Hours Hours Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling 12 AV /DC Hours On Lithology Total BHA Survey 11/2 HSI BHA DC/OD Ser Rig 1 JetVel Motor DC /ID Trip 9 ECD Shock BG Gas WT /FT W &R 14 1/2 .6 Hydstc Jars C Gas DC /Con. Cut Od Line Casing BOP Trip Gas DP /Con. Repairs 2 Size 13 3/8" Deviation Weights DPCap Circ/Cond 8 1/2 '.7 Depth 243' KB BHA/WT DC Cap. Cementers Burst 3450# DP/WT DP /Hole WOC 7 Size String Wt DP /Csg i Dd Cement 5 Depth Pick UP DC /Hole Run Csg 15 1/2 1 Burst Slack Off Total Cap NU BOP 6 Liner Drag PVT Weld Head 6 Top Torque STR/Cap Pres Test 3 Burst #2stk/bit #lstk/bit ANN/Cap Jet Pas Test #2stk/sur #tstk/sur System Total Fishing Accidents None Log Other 56 2 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 900 Man Hours Toolpusher 2 12 120 Company Man 1 24 114 Mud Logger Casing Crew 24 Cementers 24 Mud Engineer 1 24 120 Other Daily/Total Haul off Daily/Total Shale I Bbl /Disp ISTR /Fill/Disp From To Total SPR Strokes /Pressure #1 Strokes/Pressure #2 0:00 07 00 7 WOC 07.00 08.00 1 Remove cement head and manifold 8.00 08 30 1/2 R/D rotary table pull mouse hole 8.30 0930 1 Cut off drive pipe riser LID cut section 9 30 11:00 1 1/2 Cut off 13 3/8" conductor casing (at 4" above GL 11:00 1300 2 Set VETCO temporary flange on 13 3/8" conductor casing. Test seal w/ hydraulic pump to 16009 10 min. 13:00 19 00 6 N/U 13 3/8" 50009 Diverter, diverter line, knife valve and flow line nipple 19:00 22'00 3 Test diverter for function test w/ Alaska Oil Gas Conservation Commission inspector John Cnsp witness Problems with diverter opening warm w/ steam and actuated open close OK Timing for opening of OK. Conducted drop -off and build test on accumulator. Passed inspection w/ AOGCC. 2200 24 00 2 UD 16" BHA (blades "tight I Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 5,800 4,600 700 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307. 752 -2539 Crews Full 0 ^.O' 0 My 0.c.....K.silgocesSlcmCa.aPen, mcen,wx" c.o....0 9 Reparn D"".., wr s ama na"+ IRON CREEK ENERGY GROUP I .T WYOMING YOMING (307)587 -7232 S DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling 12 1/4" Surface Hole Depth 783' Date 02/20/06 Day 7 PTD DMC V WOB 6 to10 Well Northern Dancer #1 AFE AK05001 CMC •'3 RPM 90to100 Legals SI- T17N -R4W Seward Mer. DWC 24HrFtge 588' Pump Psi. 700 Weather Cold/Cloudy CWC Hrs /Drl 17.50 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 Gel 168 Pump 1 Bit 2 Bit 12 1/4" Bit 1 06 Vis (In Out) 120 Lime Liner 5" Size 12 1/4" Size Bit Sub 435 PV/YP 22/21 Caustic Stroke 10" MFG Reed MFG X/O 1.58 Gels 12/40 Bicarb SPM 78 Type S13GJ Type X/0 2 00 PH /Cake 10 Bar GPM 191 S/N AA351 S/N Ghost Reamer 5.69 Oil /Sand 0/2 LIG _Pump #2 Jets 3-15's Jets X/O 201 Solids 2.7 Baranex 15 Liner 5.5" Out Out 6 DC 180 60 WL 12 Extend 2 Stroke 9" In 255 In X/O 200 CA/CL Citric SPM 68 Footage 588 Footage X/O 111 Filler Fiber /SD GPM 181 Hours 17.50 Hours 6HWDP45 181.37 Time Distribution TGPM Ft/Hr Ft/Hr 0.00 Activity Previous Daily Cumm AV /DP 68 Grade Drilling 12 17 1/2 AV /DC 82 Hours On Lithology Total BHA 'a I Survey 11/2 11/2 HSI 0.78 BHA 171/2 Clay -Silt DC/OD 6 250 SerRig 1 JetVel 230 Motor Gravel DC /ID 2.2500 Trip 9 2 1/2 ECD 9.13 Shock BG Gas WT /FT 68# W &R 14 1/2 Hydstc 366 Jars C Gas DC /Con. 4 1/2" H90 Cut Dr! Line Casing BOP 17 1/2 Trip Gas DP /Con. 4 1/2" XH Repairs 2 Size 133/8" Deviation Weights DPCap 0 01422 Circ/Cond 8 1/2 2 1/2 Depth 243' KB 300' 1 degree BHANVT DC Cap. 0.00491 Cementers ri Burst 3450# 501' 1 degree DP/WT DP /Hole WOC 7 Size 685' 1 3/4 degree String Wt 36,000 DP /Csq. Dr! Cement Depth Pick UP 36,000 DC /Hole Run Csg 15 1/2 Burst Slack Off 34,000 Total Cap Nu BOP 6 Liner Drag PVT Weld Head 6 Top Torque 1/3 STR/Cap Pres Test 3 Burst #2stk/bit #lstk/bit ANN /Cap Jet Pits Test #2stk/sur #tstk/sur System Total :,,I. Fishing Accidents None Log I Other 58 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 1,080 Man Hours Toolpusher 2 12 144 Company Man 1 24 138 Mud Logger 2 12 0 Casing Crew 24 Cementers 24 Mud Engineer 1 24 144 Other Daily/Total Haul off I Daily/Total Shale Bbl/Disp STR /FilUDisp From To Total SPR Strokes/Pressure #1 I I Strokes/Pressure #2 I I 000 0 30 1/2 L/D old BHA 0.30 230 2 P /U new BHA TIH- tag @195' 2•30 4 00 1 1/2 Circulate condition mud 4 00 6:00 2 Drll cement tag drill cement plug drill thru float collar and drill cement (firm) to 243' (shoe) 6 00 10:00 4 Dnll 12 1/4" hole to 381' (Gravel) 10'00 10 30 1/2 Deviation survey 317' w/ 1 degree 10 30 13.30 3 Drill to 562' 13 30 14.00 1/2 Circulate condition mud 14 00 14 30 1/2 Deviation survey a 501' w/ 1 degree 1430 2030 6 Drill to 747' 20 30 21'00 1/2 Circulate condition mud 21 00 21 30 1/2 Deviation survey 685' w/ 2 degree (1.75) 21 30 24 00 2 1/2 Drill to 783' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 4,300 5,300 1,500 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307- 752.2539 Crews Full Cacms mnSoungsCon Fern os ecoverNopch,54,nfal w",.,�..,,.,ewnDa al.* oar .00re iw., ance MtnP.^a RM IRON CREEK ENERGY GROUP I CODY, WYOMING (307) 587-7232 0 S DAILY DRILLING REPORT Operator Storm Cat Energy Operation Circulate condition mud for casing Depth 960' P gY P g ep Date 02/21/06 D 8 PTD 2/2 Day DMC WOB 618k Well Northern Dancer #1 AFE AK05001 CMC r' s•• RPM 90 /160 Legals SI- 717N -R4W Seward Mer. DWC 24HrFtge 177 Pump Psi. 750 Weather Clear& Cold CWC -3 "s' Hrs /Drl 18.00 Pen /Rate y s Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.25 Gel 37 Pump 1 Bit 2 Bit 3 12 1/4" bit 1.06 vis (In Out) 95 Lime Liner 5" Size 12 114" Size 12 1/4" Stabilizer 4.35 PV/YP 29/32 Caustic Stroke 10" MFG Reed MFG Reed X/O 1.58 Gels 11/38/0 Bicarb 1 SPM 70 Type S13GJ Type S21G X/O 2.00 PH /Cake 9.0/2 Bar GPM 170 S/N AA351 S/N Y29809 Ghost Reamer 5 69 Oil /Sand 0/2 LIG Pump #2 Jets 3 -15's Jets 3 -15's X/O 201 Solids 6 8 Baranex 5 Liner 5 5" Out 850' Out 960' 6 DC's 180.60 WL 10 Extend 1 Stroke 9" In 255' In 850' X/O 2.00 CA/CL Citric 1 SPM 70 Footage 595' Footage 110' X/O 1.11 Filler Fiber /SD 34 GPM 171 Hours 23.50 Hours 11.50 6 HWDP 4 5" 181.37 Time Distribution TGPM Ft/Hr i Ft/Hr 0.00 Activity Previous Daily Cumm AV /DP 72 5 Grade 8 -8 -8 -E Drilling 29 1/2 18 AV /DC 87 5 Hours On Lithology Total BHA Survey 3 1/2 I.. HSI BHA 35 Claystone Coal DC/OD 6.25 Ser Rig 1 1/2 1 -2 JetVel 245 Motor DC /ID 2.2500 Trip 11 1/2 2 1/2 i ECD 9.42 Shock BG Gas Trace WT /FT 68# W &R 14 1/2 1 Hydstc 461# Jars C Gas DC/Con. 4 1/2" H90 Cut Dd Line 0 Casing BOP Trip Gas DP /Con. 4 1/2" XH Repairs 2 Size 13 3/8" Deviation Weights DPCap 0.01422 Circ/Cond 11 1 1/2 Depth 243' KB 901' 3 degrees BHAM? DC Cap. 0 00491 Cementers 0 Burst 34508 DP/WT DP /Hole WOC 7 Size String Wt 42,000 DP /Csq. Drl Cement 0 Depth Pick UP 42,000 DC/Hole Run Csg 15 1/2 Burst Slack Off 40,000 Total Cap. NU BOP 6 Liner Drag PVT 323 Weld Head 6 Top Torque 2000 STR/Cap Pres Test 3 Burst #2stk/bit #lstk/bit ANN /Cap. Jet Pits 0 Test #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 34 Other 58 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 1,260 v�,p Man Hours Toolpusher 2 12 168 Company Man 1 24 162 2.= Mud Logger 2 12 24 Casing Crew 24 Cementers 24 Mud Engineer 1 24 168 Other 1 12 0 Daily/Total Haul off 1 Daily/Total Shale Bbl /Disp ISTR /FilVDisp From To Total SPR Strokes /Pressure #1 I Strokes /Pressure #2 I 0000 0600 6 Drill 12 1/4" w/ bit 2 from 783' to 850' 0600 0630 1/2 Drill 850' no penetration. Prepare to TOOH 0630 0730 1 TOOH. Ream from 810' to 750' (rite) 0730 0900 1 1/2 TOOH. Stand back BHA Bit 2 worn out (no teeth shanks worn 1/4" gauge) Pick up Bit 3 0900 0930 1/2 Service ng 0930 1030 1 TIH w/ same BHA. Bit 3 12 1/4" Reed S21G w/ 3 -15's. Tag tite hole 750'. Ream from 750' to 850'. 1030 2000 9 1/2 Drill 12 1/4" hole to 853' (gravel rock) Drill ahead to 932'. Slow clay siltstone. 2000 2030 1/2 Circulate condition hole for survey. 2030 2100 1/2 Survey a 901' of 3 degrees. 2100 2300 2 Drill 12 1/4" hole to 960' for surface casing. 2300 2400 1 Circulate condition hole. Pump high ins sweep Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Previous Daily Cumulative Toolpusher Otto Mud Company Baroid 2,900 6,800 1,400 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223 -2804 Mobile 307- 752.2539 Crews Full o.. ..."as.M..e.a.w...n+. o,..s .w..,,c...1...r.,......,.a"„ m a+....,,w...,wa «u,,.,v IRON CREEK ENERGY GROUP CODY, WYOMING (307)587 -7232 116 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Wait On Cement. Depth 955' Date 02/22/06 Day 9 PTD DMC ,i,1 WOB Well Northern Dancer #1 AFE AK05001 CMC lff,52 RPM Legals S1-717N-R4W Seward Met DWC 24HrFtge 0 Pump Psi. Weather Clear Cold CWC 2 Hrs/Drl 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 93 Gel Pump 1 Bit #3 Bit Vis (In Out) 107 Lime Liner 5" Size 12 1/4" Size PV/YP 28/38 Caustic Stroke 10' MFG Reed MFG Gels Dec-44 Bicarb 4 SPM Type 521G Type PH/Cake 0 Bar 57 GPM S/N Y29809 S/N Oil/Sand 0/1.25 LIG Pump #2 Jets 3/15's Jets Solids 7 8 Baranex Liner 5.5" Out 960 Out WL 96 Extend Stroke 9" In 850 In CA/CL Citnc SPM Footage 110 Footage Filler Fiber/SD GPM Hours 11.50 Hours Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Comm AV/DP Grade 1-1-NO-A-E-IN Drilling 47 1/2 AV/DC Hours On Lithology Total BHA i'f iq Survey 3 1/2 HSI BHA DC/OD 628 Ser Rig 11/2 JetVel Motor DC/ID 2.2500 Trip 14 2 1/2 ECD Shock BG Gas WT/FT 68# W&R 15 1/2 1/2 Hydstc Jars C Gas DC/Con. 4 1/2" I-190 Cut Dr' Line 0 f Casing BOP Trip Gas DP/Con 4 1/2" XH Repairs 2 Size 13 3/8" Deviation Weights DPCap 0.01422 Circ/Cond 12 1/2 2 Depth 243' BHAAA/T DC Cap. 0.00491 Cementers 0 2 Burst 3450# DP/WT DP/Hole WOC 7 6 Size 9 5/8" Stnnq Wt DP/Csq. Dli Cement 0 Depth 950 Pick UP DC/Hole Run Csg 15 1/2 11 ,`i Burst 5750# Slack Off Total Cap. NU BOP 6 i. Liner Drag PVT Weld Head 6 Top Torque STR/Cap. Pres Test 3 Burst #2stk/bit #1stk/bit ANN/Cap. Jet Pits Test #2stk/sur #1 stk/sur System Total Fishing Accidents None Log Other 58 Total ".32 7 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Man Rig 15 12 1,440 i Hours Toolpusher 2 12 192 e Company Man 1 24 186 21/ Mud Logger 1 12 48 Casing Crew 4 8 24 '1 Cementers 4 8 24 Mad Engineer Engineer 1 24 192 Other 12 Daily/Total Haul off Daily/Total Shale I Bbl/Disp 'SIR/Fill/Dui From To Total SPR Strokes/Pressure #1 1 Strokes/Pressure #2 I 0000 0130 1 1/2 TOOH tile A812 to 875' ream thru pull 10 200' 0130 0200 1/2 TIH to bottom hole in good shape 0200 0300 1 Circulate condition mud on bottom. Pump gel/walnut hull sweep. Hole in good shape. 0300 0400 1 TOOH standback in demck to run surface casing 0400 0500 1 R/LI casing crew from GBR 0500 0700 2 Make -up shoe and float collar. Pick up casing in V-door 0700 1500 8 Run 95/8" HP110 40# 8rd LTC casing. Problems making up pipe cross threaded #3 #2 joints. TOOH. End for end running order Make up w/ shoe. 2 Its csg and float shoe. Continue running casing. Ran total of 22 jts of 9 5/8" casing. Length a 955.08. Install 13 centralizers on stnng Tag bottom with 10' fill Float collar 863'. Land 950' KB 1500 1600 1 R/U cement head manifold. 1600 1700 1 Reciprocate casing 20/25 feet and circulate Hole in good shape. 1700 1800 1 Schlumberger cement surface casing as follows: 15 bbl water w/ red dye, 20 bbl mud flush, mix pump 141 sx (50 bbl) Lead 12 8#, mix pump 145 sx Tail a 15 8#, drop rubber plug, displace w, 5 bbls water, switch to rig pump pump 10.2 mud, bump plug pressure to 750#(450# over circ pressure) Check float OK S/I WOC DID NOT CIRCULATE CEMENT TO SURFACE (mud cut cement only) 1800 2000 2 WOC Flush diverter and lines. 2000 2400 4 WOO SPILL OF 3 GALS CEMENT/MUD ON LOC BY VAC TRUCK CLEANED UP NOTED IN LOG. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 5,600 8,200 736 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile it 307-752-2539 Crews Full c wv vm v-■ svmmm.mv. sv,,,......... Ns... cr.. v, Da, Wimp Re*. Orem p 1 9 .1.,, pe,,,,. IRON CREEK ENERGY GROUP '1 CODY, WYOMING .4 (307) 587-7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation N/U BOP Depth 960' Date 02/23/06 Day 10 PTD DMC a. WOB 0 Well Northern Dancer #1 AFE AK05001 CMC I /.3.: RPM 0 Legals S1- T17N-R4W Seward Mer DWC 24HrFtge 0 Pump Psi. 0 Weather Clear Cold CWC :.t r! Hrs /Drl 0.00 Pen/Rate 0'., :l Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 Gel Pump 1 Bit Bit Vis (In Out) 94 Lime Liner 5" Size Size PV/YP 21/24 Caustic Stroke 10" MFG MFG Gels 12/55/69 Bicarb SPM Type Type PH /Cake 8.5/2 Bar GPM S/N S/N Oil /Sand 0/1 LIG Pump #2 Jets Jets Solids 5 8 Baranex Liner 5.5" Out Out WL 104 Extend Stroke 9" In In CA /CL Citric SPM Footage Footage Filler Fiber /SD GPM Hours Hours Time Distribution TGPM FVHr #7 Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling 47 1/2 2 AV /DC Hours On Lithology Total BHA Survey 31/2 HSI BHA DC /OD 6.25 Ser Rig 11/2 JetVel Motor DC /ID 22500 Trip 16 1/2 ECD Shock BG Gas WT /FT 68# W &R 16 Hydstc Jars C Gas DC /Con. 4 1/2" H90 Cut Dd Line 0 Casing BOP Trip Gas DP /Con 4 1/2" XH Repairs 2 Size 9 5/8" Deviation Weights DPCap 0 01422 Circ/Cond 14 1/2 Depth 950' BHANVT DC Cap 0 00491 Cementers 2 11/2 Burst 5750# DP/VVT DP /Hole WOC 13 6 Size String Wt DP /Csq. Dd Cement 0 Depth Pick UP DC/Hole Run Csg 26 1/2 Burst Slack Off Total Cap. r.it.: NU BOP 6 16 1/2 -'2 Liner Drag PVT Weld Head 6 Top Torque STR/Cap. Pres Test 3 Burst #2stk/b0 #lstk/bit ANN /Cap t Jet Pits 0 Test #2stk/sur #1sthsur System Total Fishing 0 Accidents None Log 0 Other 58 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 1,620 Man Hours Toolpusher 2 12 216 Company Man 1 24 210 Mud Logger 60 t Casing Crew 56 i Cementers 4 56 Mud Engineer 1 24 216 Other 12 Daily/Total Haul off I Daily/Total Shale BbVDisp STR/Fill /Disp From To Total SPR Strokes /Pressure #1 I Strokes /Pressure #2 0000 1200 12 WOC UD cement head and lines Prepare BOP for install. Nipple down diverter. Cut flange from 13 3/8" Run 1" down backside to tag cement. Tag 18' below GL. Call AOGCC state inspector John Spaulding AOGCC said to 1" cement Prepare to 1" annulus. 1200 1330 1 1/2 R/U Schlumberger and prepare to 1" cement. Schlumberger cement thru 1" as follows. displace all mud from annulus mix and pump 4 bbls Class G at 15 2. Cement to surface. R/D wash up Schlumberger. 1330 1700 3 1/2 Cut off and dress 9 5/8" casing for wellhead install. Install VETCO VG-100 11" 5000# x 95/8" Slip Loc Bottom w/ 2" LP outlets. Test to 3400 Hold 10 minutes. OK 1700 2400 7 Stack N/U Single Gate. Mud Cross, Double Gate, Annular Preventer, adapter Spool N/U Choke Line and Kill. And Kill line Other man hours Supervisor Tom Majors Contractor Kuukpik #5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Ono Previous Daily Cumulative Mud Company Baroid 4,750 8,936 850 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full c...—...r.,,,,,,,,,v,o...—r.,...m....,,........,....,,r—r,ra,ar. �,o,um.,re wra IRON CREEK ENERGY GROUP I CODY, WYOMING '4- (307) 587 -7232 0 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Pressure test casing to 2500# Depth 960 Date 02/24/06 Day 11 PTD DMC i..' WOB 0 Well Northern Dancer #1 AFE AK05001 CMC ;,0.2 RPM 0 Legals S1- 717N-R4W Seward Mer. DWC -•i 24HrFtge 0 Pump Psi. 0 Weather COLD /Clear CWC Hrs /Drl 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8 8 Gel Pump 1 Bit #4 Bit Vis (In Out) 56 Lime Liner 5" Size 8 5" Size PV/YP 17/18 Caustic Stroke 10" MFG Reed MFG Gels 6/34/47 Bicarb 7 SPM Type D11 Type PH /Cake 2 -Aug Bar GPM S/N L45742 S/N Oil /Sand 0/.1 LIG Pump #2 Jets 3/15's Jets Solids 3.7 Baranex Liner 5 5" Out Out WL 11.2 Extend Stroke 9" In 960' In CA/CL Citric SPM Footage Footage Filler Fiber /SD GPM Hours Hours Time Distribution TGPM '1 Ft/Hr r= :J' Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling 47 1/2 rt1 AV /DC Hours On Lithology Total BHA Survey 3 1/2 7 I: HSI BHA DC /OD 6 25 Ser Rig 1 1/2 1 JetVel Motor DC /ID 2.2500 Trip 16 1/2 5 r ECD Shock BG Gas WT /FT 68# W &R 16 7 7, Hydstc Jars C Gas DC /Con. 4 1/2" H90 Cut DC Line 0 Casing BOP Tnp Gas DP /Con. 4 1/2" XH Repairs 2 Size 95/8 Deviation Weights DPCap 0.01422 CirciCond 14 1/2 Depth 950' BHA/WT DC Cap. 0.00491 Cementers 3 1/2 i. Burst 5750# DP/WT DP /Hole WOC 19 Size Stnng Wt DP /Csq. DC Cement 0 Depth Pick UP DC /Hole Run Csg 26 1/2 7/ Burst Slack Off Total Cap. NU BOP 22 1/2 6 ;17 Liner Drag PVT Weld Head 6 0 t: ID 8.835 Torque STR/Cap. Pres Test 3 13 Drift 8.679 #2st /bit #1stk/bit ANN /Cap. Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total I:, Fishing 0 Accidents None Log 0 1 Safety Meetings Antifall Blocks, Testing, P/U BHA Other 58 Total :::t Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 1,800 Mar Hours Toolpusher 2 12 240 Company Man 1 24 234 Mud Logger 2 12 60 Casing Crew 56 Cementers 56 Mud Engineer 1 24 240 Other 1 4 12 Daily/To Haul To Total 1 SPR Strokesl/Pr Shale I Strokes/Pressure #2 ISTR/FilUDisp I 0000 0400 4 Nhammer all conn Install bell nipple, flowline, choke hoses and center stack on hole 0400 0600 2 Function test Koomey Fix leaky hoses P/U test it and plug 0600 0730 1 1/2 Test BOP. Fill stack test to 2000#/15 min 0730 0900 1 1/2 Test all equip to 250# Low 3500# High. Hydril outside kill #7, 16- #15 Low high Fix leak on choke hose Retest OK State of Alaska supervisor John Spaulding witnessed all test. 0900 1200 3 Test Inside kill#4- #5- #6 -#11. Inside kill Top variables #3- #13- #10 -#2- #12-#9 OK 1200 1330 1 1/2 Test dart valve floor valve to 250#/3500 OK. 1330 1430 1 Pull test plug set wear bushing in head. UD test jt. 1430 1730 3 Break out UD BHA from 12 1/4" hole 1730 2230 5 Make up new BHA for 8 1/2" hole. Run in hole to 800' I 2230 2330 1 Test casing to 2500# per AOGCC. John Spaulding, supervisor for AOGCC, approved test 2330 2400 1/2 R/D all test hoses All test witnessed by State of Alaska Inspector John Spaulding and approved All test pressure per permit as issued by State of Alaska. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Previous Daily Cumulative Toolpusher Otto Mud Company Baroid 3,550 9,786 1,200 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full «,..m..a .Mon.K. venom ...mf,,,.eo,."o"c".,,wn,.n�r, rri, pm,* 0",.. i3,„ A.,,,,« IRON CREEK ENERGY GROUP I CODY, WYOMING (307) 587 -7232 I r DAILY DRILLING REPORT Operator Storm Cat Energy Operation Repair drivehead Depth 1021' Date 02/25/06 Day 12 PTD DMC ',5c,"' WOB 7/15 Well Northern Dancer #1 AFE AK05001 CMC RPM 90 gals S1- T17N-R4W Seward Mer. DWC 24HrFtge 71 Pump Psi. 850 weather Clear /Cold CWC i 3: Firs/Dr! 6.50 Pen/Rate Mud Properties Mud Mixed �rdraulics Bit Data BHA wit In Out) 8.7 G el 31 Purl() 1 Bit #4 Bit Near Bit Stab 4.21 Vis (In Out) 39 Lime Liner 5" Size 8 1/2" Size X/O 2.00 PV/YP 10 -Oct Caustic Stroke 10" MFG Reed MFG 3/DC's 89.78 Gels 2/5 /2011 Bicarb 16 SPM 70 Type D11 Type X/O 2.15 PH /Cake 10 5/2 Bar GPM 171 S/N L45742 S/N 1-4.5 HWDP 30 09 Oil/Sand 0 /.1 LIG Pump 2 Jets 3/15's Jets X/O 1 76 Solids 2.7 Baranex 12 Liner 5.5" Out Out Jars(Hyd/Bum) 3208 WL 11.6 Extend Stroke 9" In 950 In X/O 0.93 CA/CL 20/600 Citric 4 SPM 70 Footage 71 Footage 6 -DC's 181.29 Filler Fiber /SD GPM 185 Hours 6.50 Hours 14 -4.5 HWDP 423 43 Time Distribution TGPM Ft/Hr °i Ft/Hr L= V, i X/O's Ghost 9.63 Activity Previous Daily Cumm AV /DP Grade 4- 45HWDP 120.46 Drilling 47 1/2 6 1/2 AV/DC Hours On Lithology Total BHA Survey 31/2 HSI BHA 61/2 Sand/Coal DC /OD 6.25 Ser Rig 11/2 1/2 JetVel Motor DC /ID 2.2500 Trip 211/2 1/2 ECD Shock BGGas WT /FT 68# w &R 16 Hydstc Jars 6 1/2 C Gas DC/Con 4 1/2" H90 Cut Dri Line 0 i Casing BOP 6 1/2 Trip Gas DP /Con. 4 1/2" XH Repairs 2 12 Size 9 5/8 Deviation Weights DPCap 0.01422 Circ/Cond 14 1/2 1/2 Depth 950' BHA/WT DC Cap. 0 00491 Cementers 31/2 Burst 5750# DP/WT DP /Hole WOC 19 Size Stnnq Wt 50,000 DP /Csq. Dri Cement 0 Depth Pick UP DC /Hole Run Csg 26 1/2 Burst Slack Off Total Cap. NU BOP 28 1/2 Liner Drag iY PVT Weld Head 6 ID 8.835 Torque STR/Cap. Pres Test 16 3 1/2 Drift 8.679 #2stk/bit #lstk/bit ANN /Cap Jet Pits Test 2500# #2stk/sur #tstk/sur System Total Fishing Accidents None Log Other 58 1/2 Safety Meetings' Blowdown BOP Test/Leak -off Test Total t 'Z 'T Reapirs Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 1,980 r Hoouurs Toolpusher 2 12 264 Company Man 1 24 258 .i.tzi Mud Logger 2 12 84 Casing Crew 56 Cementers 56 Mud Engineer 1 24 264 Other 1 8 16 Daily/Total Haul off 184.6 I Daily/Total Shale I BbUDisp ISTR /FiIVDisp From To Total SPR Strokes /Pressure #1 Strokes /Pressure #2 I 0000 0330 3 1/2 Test BOP: Top drive valves 250/3500 IBOP Manual IBOP 0330 0400 1/2 Service rig 0400 0600 2 Drill cement w/ bit 4 8 1/2" Reed D11. Tag cement 1)5 871'. Drill plug, float, cement 0600 0800 2 Drill cement tag shoe. Drill thru and wash to 960' 0800 0830 1/2 Dnll new 8 1/2" hole to 980' (20') for FIT 0830 0900 1/2 Condition mud for FIT 0900 0930 1/2 FIT. Estimated mud weight method p 118#. Mud p 11.2# at TD 0930 1130 2 Dnll to 1021' 1130 2330 12 Repair top dnve motor Change out. 2330 2400 1/2 TIH to 1021' to drill. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 6,750 10,986 1,041 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full ,00,.,.we e.Setbr,Ccen it, w oo..,wkae..orn ,UwA,"n On..,�,«N"e. Dena v mi. O41.7 Reimer ,w-,",. Ounce o.. zw10.N .7. i IRON CREEK ENERGY GROUP 1 CODY, WYOMING (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Circulate. W/O tools. Depth 1,451 Date 02/25/06 Day 13 PTD DMC I WOB 2/4 Well Northern Dancer #1 AFE AK05001 CMC 21.1 s RPM 80 Legals Si- T17N -R4W Seward Mer DWC 24HrFtge 430 Pump Psi. 900 Weather Cloudy -Cold CWC Hrs /Drl 11.50 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8 85 Gel 29 Pump 1 Bit #4 Bit Bit NearStab 5 04 Vis (In Out) 41 Lime Liner 5" Size 8 1/2" Size X/O 2.00 PV/YP 13/10 Caustic Stroke 10" MFG Reed MFG #/DC's 89.78 Gels 2/8/2011 Bicarb SPM 70 Type D11 Type X/O 2.15 PH /Cake 2 -Oct Bar GPM 170 S/N L45742 S/N 1 -4.5 HWDP 3009 Oil /Sand 0/ 25 LIG Pump 2 Jets 3/15's Jets X/O 1 76 Solids 4.7 Baranex Liner 5 5" Out Out Jam (Hyd/BUm) 32 08 WL 10.8 Extend Stroke 9" In 950 In X/O 0.93 CA/CL 40/550 Citric 1 SPM 70 Footage 501 Footage 6 /DC's 181.29 Filler Fiber /SD 5 GPM 185 Hours 18.00 Hours 14- 4.5HWDP 42343 Time Distribution TGPM FUHr Ft/Hr ,C1. X/O's Ghost 12.74 Activity Previous Daily Cumm AV /DP Grade 4 -4.5 HWDP 120.46 Drilling 54 11 1/2 i., 1;2 AV /DC Hours On Lithology Total BHA #(2 Survey 3 1/2 1.. HSI BHA 18 Coal Sand DC /OD 6.25 Ser Rig 2 7 JetVel Motor DC /ID 2.2500 Trip 22 1/2 2. 1 2 ECD 8.85 Shock BG Gas 2/3 WT /FT 68# W &R 16 Hydstc 667' Jars 18 C Gas DC /Con. 4 1/2" H90 Cut Dr! Line 0 Casing BOP 18 Trip Gas DP /Con 4 1/2" XH Repairs 14 Size 95/8 Deviation Weights DPCap 0 01422 CirciCond 15 12 Depth 950' 1174'- 4 degrees BHAM? DC Cap. 0 00491 Cementers 31/2 Burst 5750# 1354' Misrun DP/WT DP /Hole WOC 19 Size 1421' 7 degree String Wt 58,000 DP /Csq. Dri Cement 0 i• Depth Pick UP 58,000 DC /Hole Run Csg 26 1/2 2 Burst Slack Off 59,000 Total Cap. NU BOP 281/2 Liner Drag PVT Weld Head 6 ID 8.835 Torque STR/Cap. %i Pres Test 19 1/2 Drift 8.679 #2stk/bit #lstk/bit ANN /Cap. t' i= Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 Other 58 1/2 Safety Mtgs: Dulling ahead connections Total i Pad safety proper PPE Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 2,160 Man Hours Toolpusher 2 12 288 Company Man 1 24 282 Mud Logger 2 12 108 Casing Crew 56 Cementers 56 Mud Engineer 1 24 288 1 Other 1 4 24 f 1 Daily/Total Haul off 184 6 I Daily/Total Shale Bbl /Disp ISTR/Fill/Disp From To Total SPR Strokes/Pressure #1 Strokes/Pressure #2 0000 0100 1 Wash and ream to 1021' 0100 0600 5 Drill from 1021' to 1225' Survey o( 1111/misrun 1174' o0.4 degrees. 0600 0900 3 Drill 1225' to 1391' Survey a 1354'- misrun. 0900 1130 2 1/2 Drill 1391' to 1451'. Survey N/ 1421' 7 degrees. 1130 1430 3 Circulate condition hole Call Storm Cat. Order directional tools to straighten hole 1430 1500 1/2 Pull drill string to surface casing shoe 0 950'. 1500 2400 9 Circulate hole. W/O tools. Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 5,500 12,027 1,250 Total Mud Engineer Hilton TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full IRON CREEK ENERGY GROUP I CODY, WYOMING m. (307)587 -7232 1 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Run GYRO for deviation Depth 1,451 Date 02/27/06 Day 14 PTD DMC '.'r WOB 0 Well Northern Dancer #1 AFE AK05001 CMC RPM 0 Legals S1- 717N-R4W Seward Met. DWC ,.A 24HrFtge 0 Pump Psi. 0 Weather Clear Cold CWC 3 Hrs /Drl 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 8.8 Gel Pump 1 Bit #4 Bit Bit Near Stab 5.04 Vis (In Out) 42 Lime Liner 5" Size 8 112" Size X/O 2.00 PV/VP 13/10 Caustic Stroke 10" MFG Reed MFG 3 DC's 89.78 Gels 2/7/2012 Bicarb SPM Type D11 Type X/O 2.15 PH /Cake 9.5/2 Bar GPM S/N L45742 S/N 1- 45HWDP 3009 Oil /Sand 0 /.1 LIG Pump #2 Jets 3/15's Jets X/O 1.76 Solids 3 7 Baranex Liner 5 5" Out Out Jars 32 08 WL 10.4 Extend Stroke 9" In 950 In X/O 093 CA/CL 120/600 Citric SPM Footage Footage 6 -DC's 181.29 Filler Fiber /SD GPM Hours Hours 14-4.5 HWDP 423 43 Time Distribution TGPM Ft/Hr Ft/Hr X/O's Ghost 12.74 Activity Previous Daily Cumm AV /DP Grade 4 -4.5 HWDP 120.46 Drilling 65 1/2 3 AV /DC Hours On Lithology Total BHA V Survey 31/2 HSI BHA 18 DC /OD 6.25 Ser Rig 2 JetVel Motor DC /ID 2 2500 Tnp 221/2 1 ECD Shock BG Gas WT /FT 68# W &R 16 Hydstc Jars 18 C Gas DC /Con. 4 1/2" H90 Cut od Line 0 Casing BOP Trip Gas DP /Con 4 1/2" XH Repairs 14 Size 95/8 Deviation Weights DPCap 001422 Circ/Cond 27 21 1/2 Depth 950' 100' -.86 200'- 37 BHA/WT DC Cap 0 00491 Cementers 31/2 j Burst 5750# 300' -.72 400' -.59 DP/WT DP /Hole WOG 19 Size 500'- 9 600' -1 68 String Wt DP /Csq DU Cement 0 Depth 700' -2.13 800' -2 88 Pick UP DC /Hole Run Csg 26 1/2 Burst 900' -3 37 1000' -3.95 Slack Off Total Cap I:./ 2 NU BOP 28 1/2 a Liner 1100' -4.28 1200' -5 19 Drag PVT Weld Head 6 ID 8.835 1300' -5.9 1400' -6.99 Torque STR/Cap Pres Test 19 1/2 Drift 8 679 #2stk/bit #lstk/bit ANN /Cap. },r Jet Pits 0 6 Test 2500# #2stk/sur #1stk/sur System Total Z Fishing 0 0 Accidents None Log 0 Safety meetings: Slip, falls, tnps, and maintenance Other(Gyro) 58 1/2 1 1/2 Awarenes of new operations (wireline) Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Riq 15 12 2,340 Man Hours Toolpusher 2 12 312 Company Man 1 24 306 Mud Logger 2 12 132 Casing Crew 56 Cementers 56 Mud Engineer 1 24 312 Other 28 Daily/Total Haul off 184.6 f Daily/Total Shale I I Bbl/Dikes/Pressure #2 ISTR/Fill/Disp From To Total SPR Strokes /Pressure #1 0000 2130 21 1/2 Circulate hole inside surface casing. W/O Sperry Tools to gyro well. 2130 2230 1 Run in hole to 1451'. Circulate condition hole for Gyro (Tools on location) 2230 2400 1 1/2 R/U Alaska Pipe Recovery E -line unit and P/U Sperry Gyro tool. Go in hole and run gyro starting at surface. Take reading at surface and every 100' to 1400' with final reading at 1440' Well is 7.69 degrees off vertical as 1440' Well is heading to south with 67' displacement. 100' 1200' 200' (a) 37 1300' 0 5.9 300' .72 1400' a(). 6.99 400' 0 .59 1440' S 7.59 500' (7a, .9 600' 1.68 700' Cat 2.13 800' 2 88 900' 1000' 0 3 95 1100' Other man hours Sperry Sun Men (3) 6 18 Supervisor Tom Majors W reline Unit (2) 6 12 Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Previous Daily Cumulative Toolpusher Otto Mud Company Baroid 4,550 13,277 950 Total Mud Engineer Hilton TOTAL Rig Phone 907. 223.2804 Mobile 307.752 -2539 Crews Full o0- ....,..",..,.�.s ,«m." o.,.. c ww,n o.n crong R.oe..,iw.,"".... c, „".iow om. IRON CREEK ENERGY GROUP CODY. WYOMING I .I '.7 (307)587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Survey w/ yro 1848' Depth 1,848 Date 02/28/06 Day 15 PTD DMC WOB 2/5 Welt Northern Dancer #1 AFE AK05001 CMC ;'6 RPM M130/R90 Legals S1- 117N-R4W Seward Mer. DWC .r Fil 24HrFtge 397 Pump Psi. 1700 Weather Clear /Cold CWC ,::',.1.1 Hrs/Drl 25.60 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 Gel 28 Pump 1 Bit #4 Bit 7" Sperry 6/stp 25 15 Vis (In Out) 41 Lime Liner 5" Size 8 1/2" Size UBHO /Non -maq 583 PV/VP 10 -Dec Caustic 1 Stroke 10" MFG Reed MFG X/O's 13.95 Gels 2/7/2011 Bicarb SPM 105 Type D11 Type 9 -DC's 27107 PH /Cake 9.5/2 Bar GPM 255 S/N L45742 S/N 14 -4.5" HWDP 573 98 Oil /Sand 0/.1 LIG Pump #2 Jets 3/15 "s Jets Jars 32.08 Solids 5.8 Baranex Liner 5.5" Out Out Ghost reamer 5.63 WL 10.2 Extend Stroke 9" In 950 In CA/CL 120/550 Citric SPM 95 Footage 898 Footage Filler fiber /SD 2 GPM 251 Hours 33 50 Hours Time Distribution TGPM Ft/Hr a" Ft/Hr -L• Activity Previous Daily Cumm AV /DP 201 Grade Drilling 65 1/2 15 1/2 AV /DC 291 Hours On Lithology Total BHA •IF Survey 31/2 11/2 HSI 307 BHA 331/2 Sand DC/OD 625 Ser Rig 2 JetVel 284 Motor 151/2 DC /ID 2.2500 Tnp 231/2 5 2 ECD 9.34 Shock BG Gas 3/5 WT /FT 68# W &R 16 Hydstc 897# Jars 33 1/2 C Gas DC/Con. 4 1/2" H90 Cut Dr1 Line 0 Casing BOP 96 Tnp Gas DP /Con. 4 1/2" XH Repairs 14 'i Size 9 5/8 Deviation Weights DPCap 0.01422 Circ/Cond 481/2 1 Depth 950' 1451' -7.59 BHAANT 54,931 DC Cap. 0.00491 Cementers 31/2 3.1 Burst 5750# 1496-6.1 DP/WT DP /Hole WOC 19 Size 15565.04 String Wt 60,000 DP /Csg. On Cement 0 Depth 1619' -4 26 Pick UP 60,000 DC /Hole Run Csg 26 1/2 Burst 1681' -2.88 Slack Off 58,000 Total Cap. NU BOP 28 1/2 i- 1 Liner 1741' -2.04 Drag PVT 378 Weld Head 6 ID 8.835 1803' -.18 Torque STR/Cap. Pres Test 19 1/2 +:2 Drift 8 679 #2stk/bit #1stk/bit ANN /Cap 21 Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total C :2, Fishing 0 Accidents None Log 0 Safety Metings: Gyro survey safety Other 60 1 Drilling parameters Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 2,520 M Hours s Toolpusher 2 12 336 Company Man 1 24 330 Mud Logger 2 12 156 '1 Casing Crew 56 Cementers 56 Mud Engineer 1 24 336 Other 1 10 28 DaiFo Haul To off Total 1 SPR Strokess /Pressureh #fie I I Strokes/Pressure #2 (STR/FiIVDisp I 0000 0100 1 Survey Gyro 0100 0330 2 1/2 TOOH. UD BHA 0330 0430 1 P/U New BHA w/ 7" (6stg) Sperry Performance Motor UBHO sub onent tool 0430 0600 1 1/2 TIH w/ new BHA to 1451' 0600 0700 1 Drill 1451' to 1480' 0700 0730 1/2 Circulate condition mud for survey 0730 0800 1/2 Survey Gyro 0800 1200 4 Drill 1480' to 1597'. Survey O. 1496' 6.1, survey 1556 5 04. Slide 1475' -1495' 1540' -1554' 1200 2230 10 1/2 Drill, survey, slide to 1848'. Survey 1619' 4 26, 1681' -2.88, 1741' -2 04, 1803' .18 degrees. 2230 2300 1/2 Circulate bottoms up for survey 2300 2400 1 Survey 1848' bit depth survey 1803' Other man hours Sperry (3) 24 72 Supervisor Tom Majors Wueline (2) 24 48 Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 3,020 14,227 1,530 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307. 752.2539 Crews Full CoW.In.0 end SePor i FegaMy Osun¢n15 Rep.S.SkinICal wA""o,,..rt,..w„ o"m., oat, [rung ,,n....,,w. w.,,.. ■M W IRON CREEK ENERGY GR OUP CODY, riti (307) 587 -7232 0 0 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling 8 1/2" hole. Depth 2399' Date 03/01/06 Day 16 PTD DMC WOB 1/5 Well Northem Dancer #I AFE AK05001 CMC RPM 50/ Legals S1 -T17N -R4w Seward Mer. DWC 24HrFtge 551 Pump Psi. 1500 Weather CLEAR/Cold CWC 20 Hrs /Drl 18.50 Pen/Rate .<:•:F Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.1 Gel 22 Pump 1 Bit #4 Bit #5 Hycalog DS70 0.83 Vis (In Out) 47 Lime Liner 5" Size 8 1/2" Size 8 1/2" 7" Sperry (6stg) 25.15 PV/VP 47/16 Caustic 1 Stroke 10" MFG Reed MFG Hycalog Nonmag Fl Sub 2.49 Gels 3/8/2014 Bicarb SPM 100 Type D11 Type DS7OF X/O's 13.62 PH /Cake 2 -Sep Bar GPM 243 S/N L45742 S/N 15 -Nov 9 -DC's 271.07 Oil /Sand 0/.1 LIG Pump #2 Jets 3/15's Jets 6/12's Jam 3208 Solids 6.8 Baranex Liner 5.5" Out 1,848 Out 19 -HWDP 573.98 WL 8.6 Extend Stroke 9" In 950 In 1,848 IBS 5.63 CA/CL 80/550 Citric SPM 90 Footage 898 Footage 551 Filler Fiber /SD GPM 238 Hours 33.50 Hours 18.50 Time Distribution TGPM 'Ii Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP 210 Grade 2- 2WT- A -E1 -NO -BHA Drilling 81 18 1/2 V.9 P2 AV /DC 303 Hours On Lithology Total BHA Survey 5 3 HSI 2.15 BHA 181 /2 Sand- Siltstone DC /OD 6.25 Ser Rig 2 JetVel 232 Motor 34 Coal DC /ID 2.2500 Trip 28 1/2 5 31 '•2 ECD 9.42 Shock BG Gas 20/30u WT /FT 68# W &R 16 Hydstc 1135 Jars 52 C Gas 30u DC /Con. 4 1/2" H90 Cut Dr! Line 0 is Casing BOP 120 Trip Gas DP /Con. 4 1/2" XH Repairs 14 1/2 1n Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 491/2 'lv Depth 950' 1875' 1/2 BHA/WT 54,931 DC Cap. 0.00491 Cementers 3 1/2 2 Burst 5750# 1938' 1 DP/WT DP /Hole WOC 19 ',iii Size 1999' misrun Stnnq Wt 70 DP /Csq. Dv Cement 0 0 Depth 2029' 3/4 Pick UP 70 DC /Hole Run Csg 26 1/2 2/, '1 Burst 2152' 1/4 Slack Off 68 Total Cap. B2 NU BOP 281/2 20 1 Liner 2337'- 1 Drag PVT 378 Weld Head 6 U ID 8 835 Torque STR/Cap 12 Pres Test 191/2 Dnft 8.679 #2stk/bit #lstk/bit ANN /Cap i.iil Jet Pits 0 Test 2500# #2stk/sur #tstk/sur System Total 3;0 02 Fishing 0 Accidents None Log 0 Safety Mtq: Last tour stay focused Other 61 PPE Inspection drlg ahead Total I Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 2,700 Man Hours Toolpusher 2 12 360 Company Man 1 24 354 2 Mud Logger 2 12 180 Casing Crew 56 Cementers 56 Mud Engineer 1 24 360 Other 1 12 158 Daily/Total Haul off 184.6 I Daily/Total Shale I Strokes /Pressure #2 0154# Bbl/Disp STR 3p From To Total SPR Strokes /Pressure #1 30/47# 40/784 0000 0300 3 TOOH. UD Sperry BHA 0300 0500 2 P/U motor w/ changed bend and new BHA. TIH to 1848' 0500 0600 1 Drill 8 1/2" hole from 1848' to 1900' 0600 0900 3 Dnll to 1965'. Survey 1/2 degree 0900 1200 3 Drill to 2029'. Survey 1 degree 1200 1400 2 Drill to 2061'. Survey misrun. 1400 1500 1 Drill to 2091'. Survey 3/4 degree 1500 1830 3 1/2 Drill to 2214'. Survey (8) 1/4 degree 1830 2200 3 1/2 Drill to 2337'. 2200 2230 1/2 Change swab in pump 1 2230 2400 1 1/2 Drill to 2399' Drilling hours do not reflect survey time Next day report will break out survey time versus dolling time Other man hours Sperry (3) 12 36 Supervisor Tom Majors Wireline (2) 12 24, Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 1,300 15,757 1,720 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307. 752.2539 Crews Full =os,.,b,. S. ,v.os k.4. a..s"„wrb...1w2".. w.,". w..,., ow, N.,* iwr, ""c.. lay Is.wo,wsRm IRON CREEK ENERGY GROUP CODY, WYOMING (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling 3050' Depth 3,050 Date 03/02/06 Day# 17 PTD DMC WOB 2/4 Well Northern Dancer #1 AFE AK050O1 CMC RPM 50/140 Legals SI- T17N -R4W Seward Mer. DWC 24HrFtge 651 Pump Psi. 1600 Weather Cloudy Cold -Lt Snow CWC i /4. :ii I Hrs /Drl 16.50 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 15 Gel 8 Pump 1 Bit #5 Bit Hycalog DS7O 083 Vis (In Out) 45 Lime Liner 5" Size 8 1/2" Size 7" Sperry (6stq) 25.15 PV/YP 15/12 Caustic 1 Stroke 10" MFG Hycaloq MFG Nonmag Fl Sub 2.49 Gels 3/11/2026 Bicarb SPM 102 Type DS7OF Type X/O's 13.62 PH /Cake 9.5/2 Bar 45 GPM 248 S/N 21504 S/N 9 -DC's 271.07 Oil /Sand 0/.1 LIG Pump 2 Jets 6 /12's Jets Jam 32.08 Solids 6 8 Baranex 4 Liner 5.5" Out Out 19-4 5 HWDP 573.98 WL 7.2 Extend Stroke 9" In 1,848 In IBS 563 CA/CL 80/550 Citnc SPM 90 Footage 1202 Footage Filler Fiber /SD GPM 238 Hours 50.00 Hours Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP 193 Grade Drilling i 99 1/2 16 1/2 AV /DC 303 Hours On Lithology Total BHA 1 1, 1 -.1.1 Survey 5 3 HSI 216 BHA 35 Sand/Coal /Silt DC /OD 625 Ser Rig 2 1/2 JetVel 232 Motor 501/2 DC /ID 2.2500 Trip 331/2 3 ECD 9.41 Shock BG Gas 20/30 WT /FT 68# W &R 16 Hydstc 1451/149 68 1/2 C Gas DC/Con. 4 1/2" H9O Cut Dd Line 0 Casing BOP 148 Tnp Gas DP /Con. 4 1/2" XH Repairs 14 1/2 1 a Size 9 5/8 Deviation Weights DPCap 0 01422 Circ/Cond 491/2 1 :1' Depth 950' 2521' -3/4 BHA/WT 54,931 DC Cap. 000491 Cementers 31/2 Burst 5750# 2707' -11.4 DP/WT DP /Hole WOC 19 Size 2953' -1 String Wt 82,000 DP /Csq, Di1 Cement 0 Depth Pick UP 80,000 DC /Hole Run Csg 26 1/2 Burst Slack Off 76,000 Total Cap NU BOP 28 1/2 '1 Liner Drag c;,1,-4 PVT 409 Weld Head 6 ID 8.835 Torque 2 STR/Cap Pres Test 19 1/2 1 Drift 8 679 #2stk/bit #tstk/bit ANN /Cap Jet Pits i 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 .i Safety Mtgs.Tripping Other 61 CI Awareness Total 4{:d Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 2,880 Man Hours Toolpusher 2 12 384 Company Man 1 24 378 Mud Logger 2 12 204 Casing Crew 56 i Cementers 56 Mud Engineer 1 24 384 Other 1 12 230 Daily/Total Haul off 184 6 I Daily/Total Shale I Bbl /Disp 1STR/Fill /Disp From To Total SPR Strokes/Pressure #1 30140 812 Strokes /Pressure #2 I 35/40 I #1/104 0000 0030 1/2 Deviation survey 1 degree 2337' 0030 0130 1 Drill 8 1/2" hole to 2459' 0130 0230 1 Circulate 7 condition hole for trip 0230 0400 1 1/2 TOOH to base of surface casing no problems 0400 0430 1/2 Service rig 0430 0600 1 1/2 TIH to 2459 no problems 0600 0900 3 Drill 2459' to 2583' 0900 1000 1 Survey of 3/4 degree (o, 2521' 1000 1430 4 1/2 Drill to 2768' 1430 1530 1 Survey of 1 1/4 degree 2707' 1530 2230 7 Drill to 3014' 2230 2300 1/2 Survey of 1 degree 2953' 2300 2400 1 Drill to 3050' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Precious Daily Cumulative Mud Company Baroid 3,980 17,477 1,580 Total Mud Engineer Hilton TOTAL Rig Phone 807. 223 -2804 Mobile 307. 752.2539 Crews Full a.'..em mss. o.. orn we.,,,.v.a erns sten,. ,e.,..Dev..1,..n* ell, ow„ A. o...., p....., pa Repel IRON CREEK ENERGY GROUP I CODY, WYOMING .k (307) 587 -7232 I DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 3817' Date 03/03/06 Day 18 PTD DMC WOB 5/10 Well Northern Dancer #1 AFE AK05001 CMC RPM 60 /130 Legals S1- T17N-R4W Seward Mer DWC 515 24HrFtge 767 Pump Psi. 1700 weather Cloudy -Cold CWC i t' 51s Hrs /Drl 21.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.2 Gel 6 Pump 1 Bit #5 Bit Hycaloq DS70 0.83 Vis (In Out) 46 Lime Liner 5" Size 8 1/2" Size 7" sperry (6stq) 25.15 PV/YP 15/15 Caustic 1 Stroke 10" MFG Hycaloq MFG Nonmaq Fl Sub 2 49 Gels 4/16/2026 acerb SPM 98 Type DS7OF Type X/O's 13.62 PH /Cake 2 -Sep Bar GPM 239 S/N 21504 S/N 9 -DC's 271.07 OiVSand 0 /.1 LIG Pump 2 Jets 6/12's Jets Jars 32.08 Solids 68 Baranex Liner 5.5" Out Out 19 -4.5" HWDP 573.98 WL 76 Extend Stroke 9" In 1,848 In IBS 5.63 CA /CL 80/600 Citric SPM 90 Footage 1969 Footage Filler Fiber /SD GPM 238 Hours 71.00 Hours Time Distribution TGPM Ft/Fir 73 Ft/Hr Li:;' <i; Activity Previous Daily Cumm AV /DP 193 Grade Dolling 116 21 AV /DC 303 Hours On Lithology Total BHA Survey 8 21/2 HSI 2.17 BHA 56 Coal /Sand DC /OD 6.25 Ser Rig 2 1/2 1/2 JetVel 232 Motor 71 1/2 Max a 278u DC /ID 2.2500 Trip 36 1/2 ECD 9.47 Shock BG Gas 30/40 WT /FT 68# W &R 16 Hydstc 1879# Jars 89 1/2 C Gas 30/40 DC /Con. 4 1/2" H90 Cut Dd Line 0 Casing BOP 172 Top Gas DP /Con. 4 1/2" XH Repairs 141/2 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 50 1/2 Depth 950' 3260' 1 degree BHA/VVT 54,931 DC Cap 0.00491 Cementers 3 1/2 Burst 5750# 3629' 1 1/2 degree DP/WT 40,000 DP /Hole WOC 19 Size String Wt 94,000 DP /Csg. Dd Cement 0 Depth Pick UP 94,000 DC /Hole Run Csg 26 1/2 Burst Slack Off 86,000 Total Cap. 2 NU BOP 28 1/2 Liner Draq PVT Weld Head 6 ID 8.835 Torque 3 STR/Cap Pres Test 191/2 Drift 8.679 #2stk/bit #lstk/bit ANN/Cap. Jet Pits 0 Test 2500# #2stk/sur #1stk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtgs Lock Out/Tag Out Other 61 Pinch Points Total 2.a Man Hours Hands Hours Worked Previous Hours Daity Hours Cumulative Hours Total Rig 15 12 3,060 It': Man Hours Toolpusher 2 12 408 ,Z- Company Man 1 24 402 2 mud Logger 2 12 228 24 Casing Crew 56 Cementers 56 5 Mud Engineer 1 24 408 24 Other 1 12 242 12 r Daily/Total octal Haul To Total 184.6 I PR Strokes /Pressure h #1 30/40 68/105 BbVDis30 /40 ISTR 710/ I 0000 0700 7 Drill 8 1/2" hole from 3050' to 3321' 0700 0830 1 1/2 Deviation survey of 1 degree iS) 3260' 0830 1300 4 1/2 Drill 8 1/2" hole 3321' to 3490' 1300 1330 1/2 Rig service 1330 1900 5 1/2 Drill 8 1/2" hole 3490' to 3690' 1900 2000 1 Deviation survey of 1 1/2 degree IS) 3629' 2000 2400 4 Drill 8 1/2" hole 3690' to 3817' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 2,120 19,057 1,860 Total Mud Engineer Hilton TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full a,",.,..va ,«.,"„d,.. e„ne,.,,m .,,o.. wre w.om. m<.., C,a:n1...0 n.m IRON CREEK ENERGY GROUP I CODY, WYOMING 0, (307) 587 -7232 I 41111 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 4002' Date 03/04/06 Day 19 PTD DMC WOB 2/6 Well Northern Dancer #1 AFE AK05001 CMC RPM 50/130 Legals S1-T17N-R4W Seward Mer DWC 6.'''1"6" 24HrFtge 185 Pump Psi. 1800 Weather Cloudy-Cold CWC 1 1 Hrs/Drl 5.00 Pen/Rate P: Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.2 Gel 5 Pump #1 Bit #5 Bit #7 Reed EHP 51 0.86 Vis (In Out) 45 Lime Liner 5" Size 8 1/2" Size 8 1/2" 7" Sperry Motor 25 15 PV/YP 14/12 Caustic 1 Stroke 10" MFG Hycaloq MFG Reed Nonmag Fl Sub 2.49 Gels 3/14/1931 Bicarb SPM 98 Type DS7OF Type EHP51A X/O's 13.62 PH/Cake 2-Sep Bar 40 GPM 238 S/N 21504 S/N KH7418 9-DC's 271.07 Oil/Sand 0/.1 LIG Pump #2 Jets 6/12's Jets 3/16's Jars 32 08 Solids 68 Baranex Liner 5.5" Out 3,998 Out 19-4.5 HWDP 573.98 WL 7.8 Extend Stroke 9" In 1,848 In 3,998 IBS 563 CA/CL 80/600 Citric SPM 90 Footage 2150 Footage 4 Filler Fiber/SD 3 GPM 238 Hours 75.50 Hours 0.50 Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV/DP 194 Grade 3-2-WT-T-X-1-BT Drilling 137 5 i. AV/DC 305 Hours On Lithology Total BHA Survey 101/2 1/2 HSI 2.21 BHA 61 Sand/Silt DC/OD 625 Ser Rig 3 JetVel 233 Motor 761/2 Coal DC/ID 2.2500 Trip 36 1/2 10 ECD 9 41 Shock BG Gas 25/30 WT/FT 68# W&R 16 t Hydstc 1914 Jars 95 C Gas DC/Con. 4 1/2" H90 Cut Dr1 Line 0 Casing BOP 196 Tnp Gas 908u DP/Con. 4 1/2" XH Repairs 141/2 1/2 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cund 50 1/2 1 1/2 3; Depth 950' 3933'- 2 degree BHA/VVT 54,931 DC Cap 0.00491 Cementers 3 1/2 :s Burst 5750# DP/WT DP/Hole wOC 19 Size String Wt 92,000 DP/Csg. Dn Cement 0 Depth Pick UP 100,000 DC/Hole Run Csg 26 1/2 Burst Slack Off 86,000 Total Cap. NU BOP 28 1/2 Liner Drag I' PVT Weld Head 6 ID 8 835 Torque STR/Cap Pres Test 19 1/2 5 1/2 Drift 8.679 #2stk/bit #1stk/bit ANN/Cap. Jet Pits 0 Test 2500# #2stk/sur #1stk/sur _System Total Fishing 0 Accidents None Log 0 1 Safety Mtgs: Kick drill Other 61 1 Testing BOP's Total 43 Man Hours it Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Man Rig 15 12 3,240 1;f_. Hours Toolpusher 2 12 432 3" Company Man 1 24 426 Mud Logger 2 12 252 Casing Crew 56 it t;' Cementers 56 Mud Engineer 1 24 432 4 S Other 1 12 254 Daily/Total Haul off 184.6 I Daily/Total Shale I Bbl/Disp ISTR/Fill/Dap From To Total SPR Strokes/Pressure #1 I Strokes/Pressure #2 I 0000 0430 4 1/2 Drill from 3817' to 3998' 0430 0530 1 Circulate hole pump high vis sweep for trip 0530 0600 1/2 Deviation survey of 2 degree a 3933' 0600 1100 5 TOOH for BOP test 1100 1200 1 Repair change savor sub solenoid switch on make-up head 1200 1730 5 1/2 Conduct 7day BOP test per AOGCC Rules 1730 1800 1/2 Pull test plug from BOP. End of test. 1800 2300 5 TIN w/ bit 6. Precautionary ream from 3940' to 3998' 2300 2330 1/2 Circulate bottoms up 908u gas Second show at 400u. Circulate hole. No flow. 2330 2400 1/2 DnI18 1/2" hole from 3998' to 4002' Other roan hours Supervisor Tom Majors Contractor Kuukpik #5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 5,720 20,917 942 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full IRON CREEK EhERGY GROUP f CODY, WYOMING .44 (307)587-7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 4550' Date 03/05/06 Day 20 PTD DMC WOB 16/20 Well Northern Dancer #1 AFE AK05001 CMC RPM 63/130 Legals S1 -717N -R4w Seward Mer. DWC .r. 24HrFtge 548 Pump Psi. 1860 Weather Cloudy -Cold CWC Hrs/Drl 22.50 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.15 Gel 13 Pump 1 Bit #7 Bit Reed EHP 51 0 86 Vis (In Out) 44 Lime Liner 5" Size 8 1/2" Size 7" Sperry Motor 25 15 PV/YP 13/12 Caustic 1 Stroke 10" MFG Reed MFG Nonmag Fl Sub 2 49 Gels 3/16/2026 Bicarb SPM 91 Type EHP 51 Type X/O's 13.62 PH /Cake 9.5/2 Bar GPM 222 S/N KH7418 S/N 9 -DC's 271.07 Oil/Sand 0/.1 LIG Pump #2 Jets 3 /16's Jets Jars 3208 Solids 6.8 Baranex Liner 5.5" Out Out 19-4.5 HWDP 573.98 WL 8.4 Extend Stroke 9" In 3,998 In IBS 5.63 CA/CL 40/500 Citric SPM 93 Footage 552 Footage Filler Fiber /SD 36 GPM 246 Hours 2300 Hours Time Distribution TGPM i Ft/Hr Ft/Hr -•:a•� Activity Previous Daily Cumm AV /DP 179 Grade Ddllmg 142 221/2 e AV /DC 281 Hours On Lithology Total BHA ,t L`:a Survey 11 1/2 1':' HSI 2.17 BHA 831/2 Coal-Sand DC/OD 625 SerRig 3 JetVel 241 Motor 99 Siltstone DC/ID 22500 Trip 46 1/2 ECD 9.36 Shock BG Gas 20/40 WT /F7 68# W &R 16 Hydstc 2214 Jars 117 1/2 C Gas 40/50 DC/Con, 4 1/2" H90 Cut Oil Line 0 Casing BOP 220 Trip Gas DP /Con. 4 1/2" XH Repairs 15 Size 9 5/8 Deviation Weights DPCap 0 01422 Circ/Cond 52 1 s.• Depth 950' 4305' 2 3/4 degrees BHA/WT 54,900 DC Cap 0.00491 Cementers 31/2 1 Burst 5750# DPM/T DP /Hole WOC 19 Size String Wt 99,000 DP /Csg. Dri Cement 0 Depth Pick UP 106,000 DC/Hole Run Csg 26 1/2 [6 Burst Slack Off 94,000 Total Cap. NU BOP 28 1/2 Liner Drag i'; PVT Weld Head 6 ID 8.835 Torque 3 STR/Cap. Pres Test 25 Dnft 8 679 #2stk/bit #istk/bit ANN /Cap. Jet Pits 0 Test 2500# #2stk/sur #tstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtgs: Safety Harness Usage Other 62 Lost circulation and spill prevention Total .J.'! Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 3,420 Man Hours Toolpusher 2 12 456 Company Man 1 24 450 Mud Logger 2 12 276 Casing Crew 56 .r 2= Cementers 56 a I Mud Engineer 1 24 456 Other 1 12 266 ,i DailyROtal Haul off 184 8 Daily/Total Shale Strokes/Pressure #2 ISTR/FiIUDisp From To Total SPR Strokes /Pressure #1 30/84 40/118 30184 I 40/128 0000 0400 4 Drill 8 1/2" hole from 4002' to 4111' 0400 0430 1/2 Circulate change pump swab in 1 0430 1000 5 1/2 Drill 8 1/2" hole to 4253' 1000 1030 1/2 Circulate change pump swab in 2 1030 1600 5 1/2 Drill to 4368' 1600 1630 1/2 Deviation survey of 2 3/4 degree at 4305' 1630 2400 7 1/2 Drill to 4550' Max gas of 494u at 4475 (Coal) 1 Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 3,870 21,859 t,850 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307 752 -2539 Crews Full IRON CREEK ENERGY GROUP CODY. WYOMING (307) 587 -7232 0 DAILY DRILLING REPORT Operator Storm Cat Energy Operation TOOH for bit Depth 4906' Date 03/06/06 Day 21 PTD DMC 3.?.), WOB 20/25 Well Northern Dancer #1 AFE# AK05001 CMC :5.7',C RPM 65/130 Legals S1- T17N -R4W Seward Mer. DWC 24HrFtge 356 Pump Psi. 2000 Weather Lt Snow Cold CWC s Hrs /Drl 20.00 Pen/Rate i' ,31'O Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 15 Gel 4 Pump 1 Bit #7 Bit Reed EHP 51 0.86 Vis (In Out) 47 Lime Liner 5" Size 8 1/2" Size 7" Sperry Motor 25 15 PV/YP 16/14 Caustic 1 Stroke 10" MFG Reed MFG Nonmaq Fl Sub 2 49 Gels 4/20/1932 Bicarb SPM 98 Type EHP51 Type X/O's 13.62 PH /Cake 9.5/2 Bar 40 GPM 239 S/N KH7418 S/N 9 -DC's 27107 Oil /Sand 0/.1 LIG Pump #2 Jets 3/16's _Jets Jam 3208 Solids 6.8 Baranex Liner 5.5" Out 4,906 Out 19-4.5 HWDP 573.98 WL 7.8 Extend Stroke 9" In 3,998 In IBS 5.63 CA/CL 80/550 Citnc SPM 90 Footage 908 Footage Filler Fiber /SD 75 GPM 238 Hours 43.00 Hours Time Distribution TGPM Ft/Hr Ft/Hr ;Div: Activity Previous Daily Cumm AV /DP Grade Drilling 164 1/2 20 1/ AV /DC Hours On Lithology Total BHA /'l 8i; Survey 111/2 2 HSI BHA 1031 /2 Sand/Coal /Silt DC /OD 6.25 Ser Rig 3 JetVel Motor 119 Max Cd1 177u DC /ID 2 2500 Trip 46 1/2 iiiii ':,2 ECD 9 15 Shock BG Gas 30/40 WT /FT 68# W &R 16 Hydstc 2334 Jars 137 1/2 C Gas 38/40 DC /Con 4 1/2" H90 Cut Dd Line 0 Casing BOP 248 Trip Gas DP /Con. 4 1/2" XH Repairs 15 Size 9 5/8 Deviation Weights DPCap 0.01422 Circ/Cond 53 2 Depth 950' 4649' -2 1/2 degree BHAANT 54,900 DC Cap. 0 00491 Cementers 3 1/2 r Burst 5750# 4830' -3 degree DP/WT DP /Hole WOC 19 Size String Wt 106,000 DP /Csq. Dd Cement 0 Depth Pick UP 112,000 DC/Hole Run Csg 26 1/2 i. Burst Slack Off 98,000 Total Cap. NU BOP 28 1/2 Liner Drag PVT Weld Head 6 ID 8.835 Torque STR/Cap. Pres Test 25 Drift 8.679 #2stk/bit #tstk/bit ANN/Cap. Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtg: Lock outffag out Other 62 Pinch Points Total %6(1 1:124 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 3,600 7.iii Man Hours Toolpusher 2 12 480 /4'. Company Man 1 24 474 498 Mud Logger 2 12 300 "i2 -5 Casing Crew 56 i>4• -.C12 Cementers 56 Mud Engineer 1 24 480 Other 1 12 278 Daily/Total Haul off 184.6 I Daily/Total Shale Bbl/Disp s/Pressure #2 ISTR/ 3g 95 40/148 From To Total SPR Strokes /Pressure #1 30/101 40/140 0000 0800 8 Drill 8 1/2" hole from 4550' to 4704' 0800 0900 1 Deviation survey (a 4649' of 2 1/2 degree 0900 2100 12 Drill from 4704' to 4906' 2100 2200 1 Circulate bottoms up check gas 2200 2300 1 Deviation survey a 4830' of 3 degrees 2300 2400 1 Circulate bottoms up spot LCM pill prepare to TOOH for new bit Other man hours Supervisor Tom Majors Contractor Kuukpik It 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Harold 5.900 23,709 1,686 Total is Mud Engineer Hilton TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full IRON CREEK ENERGY GROUP CODY. WYOMING (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 5,112 Date 03/07/06 Day# 22 PTD DMC 'i WOB 21/24k Well Northern Dancer #1 AFE# AK05001 CMC s_: RPM 40/130 Legals S1- T17N -R4W Seward Mer. DWC 4/, 11 24HrFtge 206 Pump Psi. 1750 weather Lt Snow -Cold- Cloudy CWC 1 1 i Hrs /Drl 11.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.1 Gel Pump 1 Bit #7 Bit Reed EHP 61 0.86 Vis (In Out) 45 Lime Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PV/YP 15/14 Caustic 1 Stroke 10" MFG Reed MFG Nonmaq Fl Sub 2.49 Gels 3/19/1939 Bicarb SPM 98 Type EHP61 Type X/O's 13.62 PH /Cake 2 -Sep Bar GPM 239 S/N QR6153 S/N 9 -DC's 271.07 Oil /Sand 0 /.1 LIG Pump #2 Jets 2/15&1120 Jets Jam 32.08 Solids 6.8 Baranex Liner 5.5" Out Out 19 -4.5 HWDP 573.98 WL 8.2 Extend Stroke 9" In 4,906 In IBS 5.63 CA/CL 40/600 Citric SPM 90 Footage 206 Footage Filler Fiber /SD 21 GPM 238 Hours 11.00 Hours Time Distribution TGPM 4. Ft/Hr i Ft/Hr Activity Previous Daily Cumm AV /DP 193 Grade Drilling 184 1/2 11 1 1'2 AV /DC 303 Hours On Lithology Total BHA Survey 13 1/2 HSI 2 72 BHA 114 1/2 Coal- Sand -Clay DC /OD 6.25 Ser Rig 3 1/2 JetVel 261 Motor 130 DC /ID 2.2500 Tnp 46 1/2 9 ECD 9.34 Shock BG Gas 20/30 WT /FT 68# W &R 16 Hydstc 2483 Jam 148 1/2 C Gas 30 DC /Con 4 1/2" H90 Cut Dri Line 0 Casing BOP 272 Trip Gas 2350 DP /Con. 4 1/2" XH Repairs 15 2 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 55 1 1/2 2 Depth 950' BHA/WT 54,900 DC Cap. 0.00491 Cementers 3 1/2 Burst 5750# DPM/T DP /Hole WOC 19 Size String Wt 107,000 DP /Csq Dd Cement 0 Depth Pick UP 118,000 DC /Hole Run Csg 26 1/2 .d Burst Slack Off 100,000 Total Cap NU BOP 28 1/2 Liner Drag i'i PVT Weld Head 6 ID 8.835 Torque 3k STR/Cap. Pres Test 25 Drift 8 679 #2stk/ba #lstk/bit ANN /Cap. Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtg. Anti -Fall Device Other 62 Possible gas entry Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 3,780 Man Hours Toolpusher 2 12 504 Company Man 1 24 498 Mud Logger 1 12 324 Casing Crew 56 Cementers 56 Mud Engineer 1 24 504 Other 1 12 290 f_ Daial Haul off 184.6 I Daily/Total Shale I 30/93 40/127 I Bbl/Disp #2 0199 40/140 STR/F From From To Total SPR Strokes /Pressure #1 0000 0430 4 1/2 TOOH and break off bit 0430 0500 1/2 Rig service 0500 0700 2 TIH w/ bit 7 0700 0900 2 Rig repair 0900 1130 2 1/2 TIH to 4863' 1130 1230 1 Circulate 4863' Max gas C8( 2350u. Circulate bottoms up. TIH to 4906'. No fill in hole 1230 2100 8 1/2 Drill new hole from 4906' to 5060' 2100 2130 1/2 Circulate hole Chage swab in Pump 2 2130 2400 2 1/2 Dull to 5112' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Dally Cumulative Mud Company Baroid 4,330 25,395 1,570 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full ,a. .v.w.,. a.we--»,a,∎ ,..s ,..w "m"../.w.,"„� „m„ DAM a.�.iw. PTV e I aw n«r .w IRON CREEK ENERGY GROUP I CODY, WYOMING mk 13071587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 5518' Date 03/08/06 Day 23 PTD DMC F C WOB 15/18 Well Northern Dancer #1 AFE AK05001 CMC ?8(// RPM 40/130 Legals S1- T17N -R4W Seward Mer. DWC 24HrFtge 406 Pump Psi. 1900 Weather Clear Cold CWC i Hrs /Drl 22.50 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9.15 Gel 32 Pump 1 Bit #7 Bit Reed EHP61 0 86 Vis (In Out) 44 Lime Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PV/YP 16/14 Caustic 2 Stroke 10" MFG Reed MFG Nonmag Fl Sub 2.49 Gels 4/28/1946 Bicarb SPM 98 Type EHP61 Type X/O's 13.62 PH /Cake 2 -Sep Bar GPM 239 S/N QR6153 S/N 9 -DC's 271.07 Oil /Sand 0/.1 LIG Pump #2 Jets 2/15&1/20 Jets Jars 32.08 Solids 6.8 Baranex Liner 5.5" Out Out 19 -45 HWDP 573.98 WL 7.6 Extend 4 Stroke 9" In 4,906 In IBS 5.63 CA/CL 40/550 Citric SPM 90 Footage 612 Footage Filler Fiber /SD 16 GPM 238 Flours 33.50 Hours Time Distribution TGPM Ft/Hr 1S _Ft/Hr Activity Previous Daily Cumm AV /DP 193 Grade Drilling 195 1/2 22 1/2 AV /DC 303 Hours On Lithology Total BHA Survey 131/2 1 4 HSI 2.74 BHA 137 Sand Siltstone DC /OD 6.25 Ser Rig 31/2 i JetVel 261 Motor 1521/2 Clay DC /ID 2.2500 Trip 55 1/2 ECD 9 41 Shock BG Gas 20 WT /FT 68# W &R 16 Hydstc 2700 Jars 171 C Gas 37 DC /Con. 4 1/2" H90 Cut Dd Line 0 Casing BOP 296 Tnp Gas DP /Con. 4 1/2" XH Repairs 17 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 56 1/2 1/2 Depth 950' 5353' 4 1/2 degree BHANVT 54,900 DC Cap 0.00491 Cementers 31/2 Burst 5750# DP/WT DP /Hole woC 19 Size String Wt 112,000 DP /Csq. On Cement 0 Depth Pick UP 122,000 DC/Hole Run Csg 26 1/2 Burst Slack Off 102,000 Total Cap. NU BOP 28 1/2 Liner Drag .10 010 PVT Weld Head 6 ID 8 835 Torque 3k STR/Cap. Pres Test 25 Drift 8.679 #2stk/bit #1stk/bit ANN /Cap. Jet Pits 0 Test 2500# #2stk/sur #1stk/sur System Total Fishing 0 Accidents None Log 0 Safety Mfg Sling Inspection Other 62 Safe Briefing Area Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rip 15 12 3,960 Man Hours Toolpusher 2 12 528 Company Man 1 24 522 Mud Logger 2 12 336 Casing Crew 56 Cementers 56 Mud Engineer 1 24 528 i Other 1 12 302 Daily/Total Haul off 184.6 I Daily/Total Shale Bbl /Disp I STR/FilVDisp From To Total SPR Strokes /Pressure #1 30/98 40/130 Strokes /Pressure #2 30/109 I 40/154 0000 1200 12 Drill 8 1/2" hole from 5112' to 5406' 1200 1300 1 Drill to 5414' 1300 1400 1 Deviation survey of 4 1/2 degree aa, 5353' 1400 1600 2 Drill to 5444' 1600 1630 1/2 Circulate while changing piston in Pump 2 1630 2400 7 1/2 Drill to 5518' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 6,580 26,965 1,750 Total Mud Engineer Hilton TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full IRON CREEK ENERGY GROUP CODY, WYOMING y ,4 M7) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Dnllinq Depth 5843' Date 03/09/06 Day 24 PTD DMC WOB 18/20 Well Northern Dancer #1 AFE AK05001 CMC 's.:«-' RPM 67/140 Legals S1- T17N -R4W Seward Mer. DWC i 24HrFtge 325 Pump Psi. 2330 Weather Clear -Cold CWC xi Hrs /Drl 17.50 Pen/Rate -.I Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 9 3 Gel 18 Pump 1 Bit #7 Bit Reed EHP 61 0.86 Vis (In Out) 52 Carbonox 4 Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PVA'P 16/16 Caustic 2 Stroke 10" MFG Reed MFG Nonmag Fl Sub 2.49 Gels 6/49/79 Bicarb SPM 99 Type EHP61 Type X/O's 13.62 PH /Cake 2 -Sep Bar GPM 241 S/N QR6153 S/N 9 -DC's 271.07 Oil/Sand 0 /.1 LIG Pump #2 Jets 2/15 &1/20 Jets Jars 32.08 Solids 7 8 Baranex 4 Liner 5.5" Out Out 19 -4.5" HWDP 573.98 WL 8 Extend Stroke 9" In 4,906 In IBS 5.63 CA/CL 40/600 Citric SPM 99 Footage 937 Footage Filler Fiber /SD GPM 262 Hours 51.00 Hours Time Distribution TGPM i•'i Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP 208 Grade Drilling 218 17 1/2 215 AV /DC 326 Hours On Lithology Total BHA ?+%=-?i. Survey 141/2 1 I HSI 3.46 BHA 1541/2 Sand- Siltstone DC /OD 625 Ser Rig 31/2 s ?i's JetVel 280 Motor 170 DC/ID 2.2500 Trip 55 1/2 .5 2. ECD 9.62 Shock BG Gas 40 WT /FT 68# W &R 16 18 Hydstc 2825 Jars 188 1/2 C Gas 37 DC/Con. 4 1/2" H90 Cut DP Line 0 'r Casing BOP 320 Tnp Gas DP /Con. 4 1/2" XH Repairs 17 2 /1 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 57 31/2 Depth 950' 5782' 3 degree BHAM7T 54,900 DC Cap. 0.00491 Cementers 31/2 Burst 5750# DP/2VT 59,100 DP /Hole WOC 19 Size Stnnq Wt 114,000 DP /Csq. Dd Cement 0 i Depth Pick UP 128,000 DC/Hole Run Csg 26 1/2 Burst Slack Off 104,000 Total Cap. NU BOP 28 1/2 Liner Drag r r f_ PVT Weld Head 6 ID 8.835 Torque 5k STR/Cap Pres Test 25 1_ Drift 8.679 #2stk/bit #lstk/bit ANN /Cap. Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mfq' STOP Probram Other 62 Slips -Trips -Falls Total .s. Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 4,140 4 :,20 Man Hours Toolpusher 2 12 552 Company Man 1 24 546 t. -.1 Mud Logger 2 12 360 Casing Crew 56 Ii F;:r Cementers 56 Mud Engineer 1 24 552 Other 1 1 314 .313 DaiF octal Haul To off 273.7 Total 4 SPR Strokes/Pressure #1 I 30/98 40/130 I St /Pressure #2 I STR /3i y 09 I 40/154 0000 0500 5 Drill 8 1/2" hole from 551' to 5570' 0500 0600 1 Circulate condition mud change swab in pump 2 liner in pump 1 0600 0630 1/2 Drill to 5574' 0630 0700 1/2 Circulate condition mud change swab in pump 2 0700 1700 10 Drill 8 1/2" hole from 5574' to 5818' Shut off mud centrifuge to start mud weight increase Cod 1500 hours 1700 1800 1 Deviation survey 0 5782' of 3 degrees Change finer swab in pump 2 1800 1900 1 Dn11 to 5834' 1900 2100 2 Circulate condition mud change liner swab in pump 2 2100 2300 2 Rig repair Repair top drive and change IBOP. 2300 2400 1 Drill 8 1/2" hole to 5843'. 1040 u gas after ng repair Drill ahead until 0700 Weight up mud to 9.5# for bit tnp and weekly AOGCC mandated BOP test Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 4,600 28,715 1,980 Total Mud Engineer Hilton TOTAL Rig Phone 907423.2804 Mobile 307 752 -2539 Crews Full Dun a-dwi" s i..r w wo s..,," v«� e.. A ces.er„- mw.," "qvc" «,.w.,"„u�.,'a. o«re "vimi eee e, ow r .ero+* .em IRON CREEK ENERGY GROUP I CODY, WYOMING o (307)587 -7232 S r DAILY DRILLING REPORT Operator Storm Cat Energy Operation TOOH for weekly BOP Test Depth 5967' Date 03/10/06 Day 25 PTD DMC WOB 20000 Well Northern Dancer #1 AFE AK05001 CMC RPM 68/150 Legals S1- T17N -R4W Seward Mer DWC 24HrFtge 124 Pump Psi. 2350 Weather Clear Cold CWC Hrs/Drl 8.50 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt an Out) 10 3 Gel Pump 1 Bit #7 Bit Reed EHP 61 0.86 Vis (In Out) 53 Carbonox Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PV/YP 15/20 Caustic 1 Stroke 10" MFG Reed MFG Nonmaq Fl Sub 2.49 Gels 7/50/81 Bicarb SPM 103 Type EHP61 Type X/O's 13.62 PH /Cake 2 -Sep Bar 1097 GPM 251 S/N QR6153 S/N 9 -DC's 271.07 Oil /Sand 0/.1 LIG Pump #2 Jets 2/15&1/20 Jets Jam 32.08 Solids 6.8 Baranex 16 Liner 5.5" Out 5,967 Out 19 -4.5" HWDP 573.98 WL 8 Extend Stroke 9" In 4,906 In IBS 5.63 CA/CL 40/600 Citric SPM 100 Footage 1061 Footage Filler Fiber /SD GPM 264 Hours 59.50 Hours Time Distribution TGPM Ft/Hr Activity Previous Daily Cumm AV /DP Grade Drilling 235 1/2 8 1/2 AV /DC Hours On Litholoyy Total BHA Survey 151/2 HSI BHA 163 Sand- Siltstone DC /OD 625 Ser Rig 31/2 1/2 JelVel Motor 1781/2 DC /ID 2.2500 Trip 551/2 ECD Shock BG Gas 20/40 WT /FT 68# W &R 16 Hydstc Jars 197 C Gas DC/Con 4 1/2" /190 Cut Drl Line 0 Casing BOP 344 Trip Gas DP /Con 4 1/2" XH Repairs 19 Size 9 5/8 Deviation Weights DPCap 0 01422 Circ/Cond 60 1/2 15 Depth 950' BHNWT 54,900 DC Cap. 0 00491 Cementers 31/2 Burst 5750# DPIWT 63,100 DP /Hole WOC 19 Size String Wt 118,000 DP /Csq. Od Cement 0 Depth Pick UP 128,000 DC /Hole Run Csg 26 1/2 t Burst Slack Off 108,000 Total Cap. NU BOP 28 1/2 Liner Drag PVT Weld Head 6 ID 8 835 Torque 4/6k STR/Cap. Pres Test 25 Drift 8 679 #2stk/bit #lstk/bit ANN/Cap Jet Pits 0 Test 2500# #2stklsur #lstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtgs: Fire Resistant Clothing Other 62 Review Procedures Slips Tops Falls Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Man Rig 15 12 4,320 Hours Toolpusher 2 12 576 Company Man 1 24 570 Mud Logger 2 12 384 Casing Crew 56 s Cementers 56 i Mud Engineer 1 24 576 Other 1 12 315 Daily/Total Haul off 4583 Daily/Total Shale I I StroesPressure #2 30/109 40/154 kP ST S D From To Total SPR Strokes /Pressure #1 30/98 40/130 0000 0830 8 1/2 Drill 8 1/2" hole from 5843' to 5967' 0830 0900 1/2 Circulate condition mud 0900 0930 1/2 Rig service 0930 1130 2 Circulate condition mud 212u gas peak increase mud weight from 9.5 to 9.6 1130 1200 1/2 S/D pumps for 30 minutes monitor for gas influx 1200 1430 2 1/2 Circulate condition mud 230u gas peak. Weight mud to 9 7# 1430 1500 1/2 S/D pumps monitor well well flowing 1500 1630 1 1/2 Circulate condition mud 230u gas peak increase weight to 9 9# 1630 1700 1/2 S/D pumps monitor for gas influx well flowing 1700 2130 4 1/2 Circulate condition mud 160u gas peak increase weight to 10 1# 2130 2200 1/2 Monitor well with 101 -noflow 2200 2400 2 Circulate condition mud 116u gas peak increase mud weight to 10.3# for trip margin Increase Mud Weight to 10.3# for Trip Margin Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 6,300 30,695 2,300 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full Ca...,e," end s.ngCom Fe, Irtyanm.." xoveRgc"v"n.1w..0" Prue, *1eb.,.m a„.. a.. o., M., as.., o-; a "aep.. IRON CREEK ENERGY GROUP 1 CODY, WYOMING -s .n (307) 587 -7232 I DAILY DRILLING REPORT Operator Storm Cat Energy Operation Circulatin• to condition mud -salt water Depth 5967' Date 03/11/06 Day# 26 PTD DMC 2.2212 WOB 0 Well Northern Dancer #1 AFE AK05001 CMC :,..1 RPM 20/130 Legals S1 -T17N -R4w Seward Mer DWC 24HrFtge 0 Pump Psi. 2300 Weather Clear -Cold CWC Hrs /Dri 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 10.8 Gel Pump 1 Bit #7 Bit #8 Reed EHP 61 0.86 Vis (In Out) 53 Carbonox 1 Liner 5" Size 8 1/2" Size 8 1/2" 7" Sperry motor 25.15 PV/VP 17/21 Caustic Stroke 10" MFG Reed MFG Reed NonmagFl Sub 2.49 Gels 20/70/0 Bicarb SPM 96 Type EHP61 Type EHP61 X/O's 13.62 PH /Cake 9/2 Bar 160 GPM 234 S/N QR6153 S/N OR6155 9 -DC's 271.07 Oil/Sand 0/.1 LIG Pump #2 Jets 2/15&1/20 Jets 2/20 &1 /1€ Jars 32.08 Solids 9.7 Baranex Liner 5.5" Out 5,967 Out 19-45" HWDP 57398 WL 9 Extend Stroke 9" In 4,906 In 5,967 IBS 5.63 CA/CL 80/2400 Citric SPM 103 Footage 1061 Footage 0 Filler Fiber /SD GPM 273 Hours 5950 Hours 0.00 Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP 120 Grade 2- 3- LT- G- F -I -BT -Test BOP& Hrs. Drilling 244 AV /DC 188 Hours On Lithology Total BHA 24 Survey 151/2 HSI 0.78 BHA 163 DC /OD 6.25 Ser Rig 4 1/2 JetVel 162 Motor 1781/2 DC /ID 2.2500 Trip 55 1/2 13 ECD 11 16 Shock BG Gas 40/60 WT /FT 68# W &R 16 Hydstc 3462# Jars 197 C Gas DC /Con. 4 1/2" H90 Cut Dd Line 0 2 Casing BOP 368 Trip Gas 1480u DP /Con. 4 1/2" XH Repairs 19 lc Size 95/8 Deviation Weights DPCap 001422 Circ/Cond 75 1/2 81/2 Depth 950' BHA/WT 54,900 DC Cap. 0.00491 Cementers 31/2 3 1;7 Burst 5750# DP/WT 63,100 DP /Hole WOC 19 Size String Wt 118,000 DP /Csq. Drl Cement 0 Depth Pick UP DC/Hole Run Csg 26 1/2 .:1 'i 2 Burst Slack Off Total Cap °z.. NU BOP 28 1/2 2b 1.2 Liner Drag PVT Weld Head 6 s ID 8.835 Torque STR/Cap. Pres Test 25 2 Drift 8.679 #2stk/bit #lstk/bit ANN /Cap. i Jet Pits 0 lIi Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 0 Safety Mtg: Kick while drilling Other 62 Tripping pipe Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 4,500 Hours Toolpusher 2 12 600 Company Man 1 24 594 Mud Logger 2 12 408 Casing Crew 56 Cementers 56 Mud Engineer 1 24 600 Other 1 12 327 DaiF octal Haul To off Total 4 SPR Stroke Pressure #1 I 30/98# 40/130# I Strokes/Pressure #2 I STw 30/109# 40/154# 0000 0200 2 TOOH to 4422' 0200 0330 1 1/2 Circulate condition mud to monitor gas in mud. 60u to 65u background. 0330 0900 5 1/2 TOOH to surface. Make up new bit 0900 0930 1/2 Service rig 0930 1130 2 Prepare to test BOP per AOGCC Pull wear ring. Monitor well. Well flowing. L/D test plug. Reset wear ring. Run function test Koomey draw down w/ John Crisp from AOGCC 1130 1330 2 TIH to 1500' 1330 1400 1/2 Circulate background gas 0 30u 1400 1500 1 TIH to 3000' 1500 1530 1/2 Circulate background gas n, 50u 1530 1630 1 TIH to 4500' 1630 1700 1/2 Circulate background gas increase to 1150u 1700 1930 2 1/2 TIH to 4750' 5250'. Circulate w/ gas increase 100u- 680u -640u in 2 bottoms up of fluid 1930 2000 1/2 TIH to 5967' 2000 2100 1 Circulate 1450u gas mud clabbered check chlorides (a) 3000ppm (norm a 600ppm)- salt water entry 2100 2400 3 Circulate weight mud to 10.7# pull pipe to 5450' spot 19 bbls of 11# mud pull tp 5250' circulate and weight pit and hole to 10 84. Treat mud for clabbering and salt water. Continue to circulate hole. ECD 0 bit: 11 16 ECD i( shoe(950')' 11 15# Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Previous Dairy Cumulative Toolpusher Otto Mud Company Baroid 4,975 32.995 1,325 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307. 752.2539 Crews Full IRON CREEK ENERGY GROUP I CODY, WYOMING (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Weekly BOP Test Depth 5967' Date 03/12/06 Day# 27 PTD DMC WOB 0 Well Northern Dancer #1 AFE# AK05001 CMC ...2? RPM 0 Legals St- T17N -R4W Seward Mer DWC 24HrFtge 0 Pump Psi. Weather Clear -Cold CWC 7 Hrs /Drl 0.00 Pen /Rate w Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 11 0 Gel Pump 1 Bit #8 Bit Reed EHP 61 0.86 Vis (In Out) 53 Carbonox Liner 5" Size 8 1/2" Size 7" Sperry Motor 25 15 Pv/YP 17/20 Caustic Stroke 10" MFG Reed MFG NonmagFl Sub 2.49 Gels 20/70/0 Bicarb SPM Type EHP61 Type X/O's 1362 PH /Cake 9/3 Bar 320 GPM S/N OR6155 S/N 9 -DC's 271.07 Oil /Sand 0/.1 LIG Pump #2 Jets 3/20's Jets Jars 3208 Solids 10/7 Baranex Liner 5.5" Out Out 19-4.5 "HWDP 573.98 WL 90 Extend Stroke 9" In 5,967 In IBS 5.63 CA /CL 64/2700 Citric SPM Footage Footage Filler Fiber /SD GPM Hours Hours Time Distribution TGPM i Ft/Hr Ft/Hr 'ft' Activity Previous Daily Cumm AV /DP Grade Drilling 244 t AV /DC Hours On Lithology Total BHA 24.8•• Survey 151/2 f HSI BHA 163 DC/OD 6.25 Ser Rig 41/2 JetVel Motor 0 DC /ID 22500 Tnp 68 1/2 8 ECD Shock BG Gas WT /FT 68# W &R 16 Hydstc Jars 197 C Gas DC /Con. 4 1/2" H90 Cut Dd Line 0 Casing BOP 392 Tnp Gas DP /Con. 4 1/2" XH Repairs 19 Size 95/8 Deviation Weights DPCap 0.01422 Circ/Cond 84 11 Depth 950' BHANVI 54,900 DC Cap. 0.00491 Cementers 31/2 Burst 5750# DP/WT 63,100 DP /Hole WOO 19 Size Stung Wt 118,000 DP /Csq Dd Cement 0 Depth Pick UP DC /Hole Run Csg 26 1/2 Burst Slack Off Total Cap. NU BOP 281/2 Liner Drag .',:::20 PVT Weld Head 6 ID 8.835 Torque STR/Cap. Pres Test 27 5 Drift 8.679 #2stk/bit #1stlUbit ANN/Cap. Jet Pits 0 Test 2500# #2stk/sur #1 stk/sur System Total 7 Fishing 0 r Accidents None Log 0 Safety Mtg. PPE Other 62 Tripping hole fill Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 4,680 Man Hours Toolpusher 2 12 624 Company Man 1 24 618 Mud Logger 2 12 432 -i a: Casing Crew 56 av Cementers 56 s7 Mud Engineer 1 24 624 Other 1 12 339 Daily/Total Haul off 194.7 853 I Daily/Total Shale Bbl /Disp STR/Fill/Disp From To Total SPR Strokes /Pressure #1 30/180# 40/220# Strokes /Pressure #2 30/210# 40/245# 0000 0430 4 1/2 Circulate mix mud add barite to increase mud weight to 108# 0430 0500 1/2 TIH from 5229' to 5475' tight at 5270' 0500 0530 1/2 Circulate condition hole 0530 0600 1/2 TIH to 5967' 0600 0800 2 Circulate mud weight in o(7, 10.8# out 5 10 3# gas (M 550u dump 70 bbls mud from bottom 0800 1100 3 Circulate weight system to 11# 1100 1130 1/2 Pull pipe to 5700' 1130 1200 1/2 Circulate spot 11 2# pill for TOOH 1200 1230 1/2 Trip pipe to 5300' 1230 1300 1/2 Circulate gas A. 18u background 1300 1630 3 1/2 Tnp out of hole to 440' 1630 1700 1/2 Monitor well for flow no flow fill tnp tank 1700 1900 2 Tnp out of hole w/ BHA 1900 2000 1 Test BOP. Pull wear nnq set plug -R/U floor for test 2000 2400 4 Test BOP's 250#/3500# on all equipment Koomey Test Choke manifold kill valves- HCR -Hydnl Top Rams -I BOP -Floor valve -Blind rams Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 3,525 34,320 1,450 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307. 752.2539 Crews Full IRON CREEK ENERGY GROUP I CODY, WYOMING Nt (307)587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Drilling Depth 6057' Date 03/13/06 Day 28 PTD DMC WOB 20000 Well Northern Dancer #1 AFE AK05001 CMC RPM 58 /159 Legals S1 -T17N -R4w Seward Mer. DWC 24HrFtge 90 Pump Psi. 2275 Weather Clear Cold CWC Hrs /Drl 6.50 Pen /Rate /2/;` Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 10 8 Gel Pump 1 Bit #8 Bit Reed EHP61 0.86 Vis (in Out) 51 Carbonox 6 Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PV/YP 17/20 Caustic 4 Stroke 10" MFG Reed MFG Nonmaq FISub 2.49 Gels 18/90/0 Bicarb SPM 102 Type EHP61 Type X/O's 13.62 _PH /Cake 9.0/3 Bar 11 GPM 248 S/N QR6155 S/N 9 -DC's 271.07 Oil/Sand 0/.1 LIG Pump #2 Jets 3/20's Jets Jars 32.08 Solids 9.7 Baranex Liner 5.5" Out Out 19 -4.4" HWDP 573.98 WL 90 Extend Stroke 9" In 5,967 In IBS 563 CA/CL 56/3200 Citric SPM 100 Footage 90 Footage Filler Fiber /SD 12 GPM 265 Hours 6.50 Hours Time Distribution TGPM Ft/Hr Ft/Hr Activity Previous Daily Cumm AV /DP 208 Grade Drilling 244 6 1/2 '/a5 1'2 AV /DC 326 Hours On Lithology Total BHA t. Survey 151/2 1 "i -2 HSI 1.65 BHA 1691/2 Sand Siltstone DC /OD 625 Ser Rig 41/2 3 U2 JetVel 180 Motor 61/2 Coal DC/ID 2.2500 Trip 76 1/2 9 ,,2 ECD 11.2 Shock BG Gas 30/40 WT /FT 68# W &R 16 Hydstc 3401 Jars 203 1/2 C Gas 35/40 DC /Con 4 1/2" H90 Cut Dd Line 0 Casing BOP 416 Trip Gas 1300 DP /Con 4 1/2" XH Repairs 19 Size 9 5/8 Deviation Weights DPCap 0.01422 Circ/Cond 95 2 1/2 .2 /1' Depth 950' BHA/WT 54,900 DC Cap 0.00491 Cementers 3 1/2 Burst 5750# DP/WT 84,775 DP /Hole WOC 19 Size String Wt 128,000 DP /Csq. Sri Cement 0 Depth Pick UP 138,000 DC /Hole Run Csg 26 1/2 Burst Slack Off Total Cap. a of NU BOP 281/2 Liner Drag PVT ,c. Weld Head 6 ID 8.835 Torque 3/4k STR/Cap. Pres Test 32 6 Dnft 8.679 #2stk/bit #1stk/bit ANN /Cap. ;s.4f,' Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total 4/i r= Fishing 0 Accidents None Log 0 Safety Mtg: Lock Out -Tag Out Procedure Other 62 Locl Out Tag Out Procedure Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rip 15 12 4,860 Mar Hours Toolpusher 2 12 648 Company Man 1 24 642 Mud Logger 2 12 456 ,-t Casing Crew 56 a. Cementers 56 Mud Engineer 1 24 648 Other 1 12 351 Daily/Total Haul off 653 bbls. I Daiy/Total Shale Bbl/Disp STR/FiIt/Disp From To Total SPR Strokes/Pressure #1 l 30/157 40/191 I Strokes/Pressure #2 I 30/155 I 40/184 0000 0600 6 Test Dart Valve (250/3500) attempt to test lower pipe rams change out lower pipe rams test lower pipe rams (250 -3500) pull plug set wear nnq 0600 0900 3 P/U new motor (Sperry 7" High Performance) froze (temp an -14 degrees) thaw out w/ steam Makeup bit 8 Reed 8 1/2" EHP61 0900 1130 2 1/2 TIH to 2155' 1130 1200 1/2 Circulate hole to check for gas I I 1200 1300 1 TIH to 3500' 1300 1330 1/2 Circulate hole to check for gas 60 units 1330 1430 1 TIH to 5000' 1430 1500 1/2 Circulate hole to check for gas 200 units 1500 1600 1 TIH to 5700' 1600 1630 1/2 Circulate hole to check for gas and circulate 11.2# pill off bottom (loss of fluid while circulating a 8 bbls) 1630 1700 1/2 TIH to 5967' 1700 1730 1/2 Circulate hole gas CDC 300units max 1730 2400 6 1/2 Drill new hole 8 1/2" from 5967' to 6057' Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative i Mud Company Baroid 2,150 35,770 1,375 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 8 307-752-2539 _Crews Full .ac,m.,.a,SenpseCs,.e. w ac,.. 4w. mks c.n.. Cancer O. ow., a....0 a, 1 a, 28 +znwo<g IRON CREEK ENERGY GROUP I CODY, WYOMING (307)587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Condition Hole for Logs Depth 6233' Date 03/14/06 Day 29 PTD DMC :0/iT WOB 23 Well Northern Dancer #1 AFE AK05001 CMC 0/) RPM 74/160 Legals St- T17N -R4W Seward Mer. DWC 24HrFtge 176 Pump Psi. 2180 Weather Clear Cold CWC :,1 r_Hrs /Dd 8.00 Pen /Rate 02 fq". Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 10 85 Gel Pump 1 Bit #8 Bit Reed EHP61 0.86 vis (In Out) 62 Carbon. 1 Liner 5" Size 8 1/2" Size 7" Sperry Motor 25.15 PV/YP 15/21 Caustic Stroke 10" MFG Reed MFG NonmagFlSub 2 49 Gels 20/90/0 Bicarb SPM 104 Type EHP61 Type X/O's 13.62 PH /Cake 9.0/3 Bar 42 GPM 253 S/N QR6155 S/N 9 -DC' 27107 Oil /Sand 0 /.1 LIG Pump #2 Jets 3/20's Jets Jars 3208 Solids 9 7 Baranex Liner 5.5" Out 6,233 Out 19 -4.5" HWDP 573 98 WL 9 Extend Stroke 9" In 5,967 In IBS 5.63 CA/CL 60/3200 Citric SPM 100 Footage 266 Footage Filler Fiber /SD 5 GPM 265 Hours 14.50 Hours Time Distribution TGPM Ft/Hr ,,:"5, Ft/Hr 0,)10.0' Activity Previous Daily Cumm AV /DP 186 Grade Drilling 250 1/2 8 AV /DC 292 Hours On Lithology Total BHA '.:.34 Survey 151/2 HSI 119 BHA 1771/2 DC /OD 6.25 Ser Rig 41/2 Ji JetVel 161 Motor 141/2 DC /ID 2.2500 Tnp 85 1/2 i ECD 11.26 Shock BG Gas 20 WT /FT 68# W &R 16 1, Hydstc 3516 Jars 211 1/2 C Gas DC /Con 4 1/2" H90 Cut Dd Line 0 8 Casing BOP 440 Trip Gas DP /Con. 4 1/2" XH Repairs 19 in Size 95/8 Deviation Weights DPCap 001422 Circ/Cond 97 1/2 16 .2 Depth 950' BHA/WT 54,900 DC Cap. 0.00491 Cementers 31/2 3 7 Burst 5750# DP/WT 73,100 DP /Hole WOC 19 Size String Wt 128,000 DP /Csq Drl Cement 0 Depth Pick UP DC/Hole Run Csg 26 1/2 ;r: Burst Slack Off Total Cap. NU BOP 28 1/2 1,.; Liner Drag PVT Weld Head 6 ii ID 8.835 Torque 6k STR/Cap. Pres Test 38 11/ Drift 8.679 #2stk/brt #1stk/bit ANN /Cap. .0 Jet Pits U 4 Test 2500# #2stk/sur #1stk/sur System Total 0111.: Fishing 0 0 Accidents None Log 0 1'i Safety Mtq: Pinch Points Other 62 Pit Monitonnq Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 5,040 Man Hours Toolpusher 2 12 672 Company Man 1 24 666 Mud Logger 2 12 480 Casing Crew 56 Cementers 56 Mud Engineer 1 24 672 Other 1 12 363 Dail o Haul To Total SPR Strokes P essu a #1 I 30/157 40/191 Strokes/Pressure #2 I STR/Fil I 40/184 0000 0800 8 Drill 8 1/2" hole from 6057' to 6233'. Received OK to stop drilling Prepare to log well 0800 1200 4 Circulate condition mud Pump LCM sweep. Gas 0 50u. 1200 2400 12 Circulate condition mud for logs Loggers arrive on location. Prepare to spot weighted pill on bottom and start TOOH on, slow rate Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daly Cumulative Mud Company Baroid 4,525 37,145 2,150 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307. 752.2539 Crews Full C �".w, cpa Sear, Dom Fe h, oma,e,a ACIVeRern Nalban anew*, wmn Cans n, wry Dwyaevn r,".av�a.,Pry m,D IRON CREEK ENERGY GROUP I CODY, WYOMING (307) 587 -7232 S DAILY DRILLING REPORT Operator Storm Cat Energy Operation Circulate condition hole for casing Depth 6233' 1 Date 03/15/06 Day 30 PTD DMC i 3,. WOB 0 Well Northern Dancer #1 AFE AK05001 CMC :1,2 f, 1 RPM 0 Legals SI-T17N-R4W Seward Mer DWC ::-1 24HrFtge 0 Pump Psi. 1900 Weather Clear-Cold CWC i Hrs/Drl 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 10 9 Gel Pump #1 Bit #8 Bit Reed EHP61 0.86 Vis (In Out) 54 Carbonox Liner 5" Size 8 1/2" Size X/O's 14.64 PV/YP 17/19 Caustic Stroke 10" MFG Reed MFG 9-DC's 271.07 Gels 19/73/0 Bicarb SPM 90 Type EHP61 Type Jam 32.08 PH/Cake 9/3 Bar 60 GPM 219 S/N QR6155 S/N 19-4 5" HWDP 573.98 Oil/Sand 0/1 LIG Pump #2 Jets 3/20's Jets IBS 5.63 Solids 9.7 Baranex Liner 5 5" Out 6,233 Out WI 9 Extend Stroke 9" In 5,967 In CA/CL 58/3100 Citnc SPM 90 Footage 266 Footage Filler Ftber/SD GPM 238 Hours 14 50 Hours Time Distribution TGPM Ft/Hr :e.3.: Ft/Hr Activity Previous Daily Cumin AV/DP 150 Grade 2-2-WT-A-E-I-BT-TD Drilling 258 1/2 AV/DC 235 Hours On Lithology Total BHA 9l, Survey 151/2 HSI 063 BHA 177 1/2 TD DC/OD 6.25 Ser Rig 4 1/2 JetVel 272 Motor DC/ID 2.2500 Trip 85 1/2 10 ECD 11.28 Shock BG Gas 20/30 WT/FT 68# W8R 16 Hydstc 3533 Jars 211 1/2 C Gas DC/Con 4 1/2" H90 cut On Line 0 Casing BOP 464 Trip Gas 1200 DP/Con 4 1/2" XH Repairs 19 Size 95/8 Deviation Weights DPCap 0 01422 Circ/Cond 113 1/2 3 i Depth 950' BHA/WT 45,000 DC Cap. 0.00491 Cementers 3 1/2 Burst 5750# DP/WT 88,566 DP/Hole WOC 19 Size String Wt 133,000 DP/Csq Da Cement 0 Depth Pick UP 140,000 DC/Hole Run Csg 26 1/2 Burst Slack Off 110,000 Total Cap. NU BOP 28 1/2 Liner Drag /.247 PVT Weld Head 6 ID 8.835 Torque STR/Cap. Pres Test 38 Drift 8.679 #2stk/bit #1stk/bit ANN/Cap. Jet Pus 0 Test 2500# #2stk/sur _tt1stkisur System Total Fishing 0 Accidents None Log 0 11 Safety Mtg: Barricades Keeping mind on task Other 62 Trip Sheets Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Man Rig 15 12 5,220 'l21. Hours Toolpusher 2 12 696 71 Company Man 1 24 690 2 t Mud Logger 2 12 504 24 Casing Crew 56 n Cementers 56 3 Mud Engineer 1 24 696 I Other 1 12 375 Daily/Total Haul off 653 bbls. 1 Daily/Total Shale I Bbl/Disp STR/Fill/DIsp From To Total SPR Strokes/Pressure #1 30/157 40/191 Strokes/Pressure #2 30/155 I 40/184 0000 0030 1/2 Circulate condition mud 0030 0100 1/2 Pull pipe to 5700' to spot weighted pill 0100 0130 1/2 Circulate spot 11.2# weight pill 0130 0700 5 1/2 TOOH for open hole logs 0700 0800 1 R/U Schlumberger and hole pre-job safety meeting 0800 1800 10 Schlumberger ran Platform Express (Array Ind-Litho Density-Comp Neutron-GR-Cal) Log TD 6242' Run FMI-Borehole Comp Sonic GR. Log off bottom to 5466' stuck tool work tool to max wire pull Free tool stop log run TOOH found large chunk shale stuck in pad. UD log tools. Release loggers 1800 1830 1/2 UD mud motor sub 1830 2400 5 1/2 TIH w/ drill string_ Stop 15)1500-3000-4500' circulate to check gas condition hole. Other man hours Schlumberger 5 55 Supervisor Tom Majors Contractor Kuukpik #5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 3,450 39,295 1,075 Total Mud Engineer Richardson TOTAL Rig Phone 907-223-2804 Mobile 307-752-2539 Crews Full C Pre,6.61cm■Cal N.alarn Oates CI.Pareredn Osnaw il Orsly On, Rprts Morn Dares 1 1.,0 61,1:. Cc., IRON CREEK ENERGY GROUP I CODY, WYOMING 14 0 (307) 587-7232 1 DAILY DRILLING REPORT Operator Storm Cat Energy Operation LDDP to run casing Depth 6233' Date 03/16/06 Day 31 PTD DMC et; i WOB 0 Well Northern Dancer #1 AFE AK05001 CMC h RPM 0 Legals S1- 717N-R4W Seward Mer DWC 24HrFtge 0 Pump Psi. 1800 Weather Clear -COLD CWC k-^ Hrs /Drl 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) 10.8 Gel 16 Pump 1 Bit #8 Bit Reed EHP61 0.86 Vis (In Out) 47 Carbonox 28 Liner 5" Size 8 1/2" Size X/O's 14.64 PV/VP 15/20 Caustic 2 Stroke 10" MFG Reed MFG 9 -DC's 271.07 Gels 17/68/0 Bicarb SPM 98 Type EHP61 Type Jam 32.08 PH /Cake 9/3 Bar 284 GPM 239 S/N QR6155 S/N 19 -4.5" HWDP 573.98 Oil /Sand 0/.1 LIG Pump #2 Jets 3/20's Jets IBS 5.63 Solids 9.7 Baranex Liner 5 5" Out 6,233 Out 0 00 WL 9 Extend Stroke 9" In 5,967 In CA/CL 63/3100 Citric SPM 90 Footage 266 Footage Filler Fiber /SD GPM 238 Hours 14 50 Hours Time Distribution TGPM Ft/Hr c Ft/Hr N'., Activity Previous Daily Cumm AV /DP 64 Grade 2- 2- WT- A- E- I -BT -TD Drilling 258 1/2 i AV /DC 100 Hours On Lithology Total BHA Survey 151/2 HSI 0.05 BHA 1771/2 DC /OD 625 Ser Rig 41/2 JetVel 55 Motor DC /ID 22500 Trip 2 1/2 95 1/2 ECD 11.07 Shock BG Gas WT/FT 68# W &R 1/2 16 i. Hydstc 3500 Jars 211 1/2 C Gas DC /Con. 4 1/2" H90 Cut Drt Line 0 Casing BOP 488 Trip Gas DP /Con. 4 1/2" XH Repairs 19 Size 9 5/8 Deviation Weights DPCap 0.01422 Circ/Cond 21 1161/2 Depth 950' BHANVT 45,000 DC Cap. 0.00491 Cementers 31/2 Burst 5750# DP/VVT 88,500 DP /Hole WOC 19 Size String Wt 133,000 DP /Csq Dd Cement 0 Depth Pick UP 130,000 DC /Hole Run Csg 26 1/2 Burst Slack Off 110,000 Total Cap. NU BOP 28 1/2 Liner Drag PVT Weld Head 6 ID 8.835 Torque STR/Cap. Pres Test 38 Drift 8.679 #2stk/bit #lstk/bit ANN /Cap. 1 •i 'i" Jet Pits 0 Test 2500# #2stk/sur #lstk/sur System Total Fishing 0 Accidents None Log 11 Safety Meeting. Tnpping Pipe Strap Insp. Other 62 Rolling Csq, Slippery Uneven footing Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 5,400 Man Hours Toolpusher 12 720 Company Man 1 24 714 Mud Logger 1 24 528 Casing Crew 56 •,f, Cementers 56 Mud Engineer 1 24 720 Other 1 12 442 Daily/Total Haul off 653 bbls.1 Daily/Total Shale I Bbl/Disp JSTR/Fill/Disp From To Total SPR Strokes /Pressure #1 30/118 40/146 Strokes /Pressure #2 30/112 40/143 0000 0100 1 TIH w/ 8 1/2" bit to 6220' 0100 0130 1/2 Tag fill A 6220' wash to bottom aa, 6233' circulate bottoms up 0130 0600 4 1/2 Circulate condition hole circultae max gas a 1480u 0600 2200 16 Circulate hole and wait for cement to be blended and delivered to location 2200 2230 1/2 Pull up hole to 5700' 2230 2300 1/2 Spot 11.2# weighted pill (v)a, 5700' 2300 2400 1 TOOH w/ DP. Break each connection and stand back in derrick Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 4,200 40,370 1,853 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307.752 2539 Crews Full <Dv...", """s rn Frnettmenes ...Ma NeMern Cancet w.,"" Crew mn oAne Rerniallmtn Dame ow3,..7*Cosv IRON CREEK ENERGY GROUP l CODY, WYOMING c (307)587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Cementin. 1st Stage of Production Depth 6233' Date 03/17/06 Day 32 PTD DMC o. WOB 0 Well Northern Dancer #1 AFE AK05001 CMC i RPM 0 Legals S1- T17N -R4W Seward Mer. DWC 2., 3 e 24HrFtge 0 Pump Psi. 300/525 Weather Lt Snow Cold CWC n 2' Hrs /DrI 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data CASING Wt (In Out) Gel Pump 1 Bit Bit Fl. Shoe 1 31 Vis (In Out) Carbonox Liner 5" Size Size 1 jt csg 46 88 PV/YP Caustic Stroke 10° MFG MFG Fl. Collar 1.22 Gels Bicarb SPM Type Type 1 jt csg 46.50 PH /Cake Bar 50 GPM S/N S/N Latch Baffle PI. 0.00 Oii /Sand LIG Pump 2 Jets Jets 29 jts csg 1341 27 Solids Baranex Liner 5.5" Out Out X/O 1.42 WL Extend Stroke 9" In In TAM ACP 847 CA/CL Citric SPM Footage Footage 1 jt csg 46.70 Filler Fiber /SD GPM Hours Hours Stg Tool 2 20 Time Distribution TGPM Ft/Hr Ft/Hr 100 jts csg 4671.56 Activity Previous Daily Cumm AV /DP Grade Sub Hang -UJT 24 26 Dolling 258 1/2 ".1 AV /DC Hours On Lithology Total Cap. I:e1,t;= Survey 151/2 HSI BHA DC /OD 6.25 Ser Rig 41/2 JetVel Motor DC /ID 2.2500 Trip 98 9 Y ECD Shock BG Gas WT /FT 68# W &R 16 1/2 ..r Hydstc Jars C Gas DC /Con. 4 1/2" H90 Cut DA Line 0 1 Casing BOP 512 Trip Gas 2000u DP /Con. 4 1/2" XH Repairs 19 ,.r Size 95/8 Deviation Weights DPCap 001422 Circ/Cond 137 1/2 2 133 Depth 950' BHA/WT DC Cap. 0 00491 Cementers 3 1/2 a i. Burst 5750# DP/WT DP /Hole WOC 19 a Size String Wt DP /Csq. Drl Cement 0 Depth Pick UP DC/Hole Run Csg 26 1/2 12 iS• '2 Burst Slack Off Total Cap. f 02 NU BOP 28 1/2 i2 Liner Drag PVT Weld Head 6 ID 8 835 Torque STR/Cap. 0:.52 Pres Test 38 Dnft 8 679 #2stk/btt #1 stk/bit ANN /Cap. 0 Jet Pas 0 Test 2500# #2stk/sur #lstkisur System Total /12 Fishing 0 Accidents None Log 11 Safety Mtq: UD Collars HWDP Other 62 1 Running Casing Cement Total 1 Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 5,580 Man Hours Toolpusher 2 12 720 Company Man 1 24 738 r .2. Mud Logger 1 24 552 Casing Crew 3 10 56 1.0. Cementers 4 12 56 Mud Engineer 1 24 744 ItIt Other 3 12 454 Daily/Total Haul To Total 705.4 I PR Strokes/Pressure h #1 I Strokes/Pressure #2 ISTR/FilUDisp I 0000 0900 9 TOOH w/ DP to 1500' UD part of drill string monitor well LID BHA 0900 1000 1 Pull wear bushing 1000 1100 1 R/U GBR Casing crew to run production casing 1100 1930 8 1/2 Run 132 jts of 5.5" 17# L80- LT &C 6191 79'. Insert baffle 6095' TAM Packer 4754' Stage Tool 4671'. Ran 55 centralizers. (See attached file for casing tally) 1930 2130 2 Circulate condition mud. Circulate 7 5 bpm 325 Circulate 2000u gas peak 2130 2300 1 1/2 R/U Schlumberger manifold hold pre/job safety meeting pressure test lines to 5000# 2300 2400 1 Pump 1st Stage cement w/ Schlumberger 27 bbl mud push 103 bbls 15.8# cement 496 sx Class G Drop plug displace w/ Schlumberger and rig pump Land plug. Pressure up. OK Other man hours MRO Tool Hand 12 Supervisor Torn Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 2,700 42,223 1,500 1 Total Mud Engineer Richardson TOTAL Rig Phone 907 223 -2804 Mobile 307 752 -2539 Crews Full cmt•.n I wo°.,...,..,....a.,.s w.,"....".,wa°„�mo. s eon.nerineE,o...,,o IRON CREEK ENERGY GROUP CODY, WYOMING Nt (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Nipple Down BOP Set Top Flange Depth 6233' Date 03/18/06 Day* 33 PTD 4702'KB 609TKB DMC WOB 0 Well Northern Dancer #1 AFE AK05001 CMC RPM 0 Legals 31 -T17N -R4w Seward Mer. DWC '5 .,f 24HrFtge 0 Pump Psi. 0 Weather Lt Snow -Cold CWC 02 Hrs /Drl 0.00 Pen /Rate t:.,:'.r; Mud Properties Mud Mixed Hydraulics Bit Data CASING Wt (In Out) Gel Pump 1 Bit Bit Fl Shoe 1.31 Vis (In Out) Carbonox Liner 5" Size Size 1 jt Csg 46 88 PV/YP Caustic Stroke 10" MFG MFG Fl Collar 1.22 Gels Bicarb SPM Type Type 1 jt Csg 46 50 PH /Cake Bar GPM S/N S/N Latch Baffle PI. 0.00 OiI /Sand LIG Pump #2 Jets Jets 29jts csq 1341.27 Solids Baranex Liner 5.5" Out Out X/O 1.42 WL Extend Stroke 9" In In TAM ACP 847 CA /CL Citric SPM Footage Footage 1 jt Csq 46 70 Filler Fiber /SD GPM Hours Hours Stg Toot 2 20 Time Distribution TGPM Ft/Hr 2'C22 O: Ft/Hr 100 Its csg 4671.56 Activity Previous Daily Cumm AV /DP Grade Sub Hang -UJt 24.26 Dolling 258 1/2 1- AV /DC Hours On Lithology Total BHA Survey 1512 1 .'2 HSI BHA DC /OD 6.25 Ser Rig 41/2 v 1 :2 JetVel Motor DC /ID 22500 Trip 98 •.s` ECD Shock BG Gas WT /FT 68# W &R 16 1/2 2 Hydstc Jars C Gas DC /Con 4 1/2" H90 Cut Dr! Line 0 Casing BOP 536 Tnp Gas DP /Con. 4 1/2" XH Repairs 19 Size Deviation Weights DPCap 001422 Circ/Cond 137 1/2 10 1/2 i Depth BHA/WT DC Cap 0 00491 Cementers 31/2 8 Burst DP/WT DP /Hole WOC 19 1 12 2'. 1 .2 Size 5 1/2" String Wt DP /Csq. Dri Cement 0 Depth 6192' Pick UP DC /Hole Run Csg 26 1/2 2 Burst 7,740 Slack Off Total Cap. +i 02 NU BOP 28 1/2 4 Liner Drag PVT Weld Head 6 ID 4.892 Torque STR/Cap I.2 Pres Test 38 Drift 4.767 #2stk/brt #tstk/bit ANN /Cap. Jet Pits 0 Test #2stk/sur #1stk/sur System Total Fishing 0 Accidents None Log 11 Safety Mtgs. Cementing LDDP Other 62 Cementing Double Check Equipment Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 5,760 Man Hours Toolpusher 2 12 768 Company Man 1 24 762 2 Mud Logger 576 Casing Crew 86 2 Cementers 4 14 104 Mud Engineer 1 24 768 Other 4 12 502 Daily/Total Haul To Total 1030.5 SPR Strokes/Pressure #1 I I S #2 ISTR/FiIVDisp I 0000 0130 1 1/2 Continue displacement of 1st stage cement bump pluto 1000# Set TAM ACP Packer land csq in casing hanger pressure casing to 4100# open stage tool circulate 0130 1330 12 Circulate casing thru stage tool W/O delivery of bulk blended cement from Fairbanks, AK 1330 1700 3 1/2 Hold pre -job safety meeting and job description for 2nd Stage Cement job. Pump 20 bbls CW -100 Lead Cement 12.4# w/ yield of 2 4 cubic feet (202 bbls) and Tail 145# w/ yield of 1 41 cubic feet (120 bbls). Drop closing plug. Displace w/ 109 bbls fresh water 4 -5 bpms Land plug and pressure to 3000# Shut stage tool. Release pressure No flow back Job complete Circulate +100 bbls cement to pit. 1700 2000 3 Open BOP flush cement mud clean out possum belly R/D cement equipment 2000 2100 1 Nipple down BOP rotary pull mouse hole flow line 2100 2400 3 Nipple down BOP nser spool single gate mud cross Koomey kill lines choke valves Hauling dnllinq mud to Emerald Alaska disposal Palmer, AK KB Measure 20.5' NOTE: Stage Tool Plug Back 4702' KB PBTD 6097' KB Shoe 6191' KB Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 4,000 43,723 1,162 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223 -2804 Mobile it 307. 752.2539 Crews Full u,.. t ,...wm ",Yt -s s—o,ww-oF. ",tvw,,, m,wos., .s m..�.. ",w,m".t., I IRON CREEK ENERGY GROUP g t CODY, WYOMING •,a K (307) 587 -m32 S DAILY DRILLING REPORT Operator Storm Cat Energy Operation Rigging Down Drilling Rig Load Out Depth 6233' Date 03/19/06 Day 34 PTD 4702'KB- 6097'KB DMC WOB 0 Well Northern Dancer #1 AFE AK05001 CMC RPM 0 Legals S1- 1"17N-R4W Seward Mer. DWC ,3:IJ 24HrFtge 0 Pump Psi. 0 Weather Lt Snow -Cold CWC ,'ti',Z Hrs /Drl 0.00 Pen /Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) Gel Pump 1 Bit Bit Fl Shoe 1 31 vis (In Out) Carbonox Liner 5" Size Size 1 jt Csq 46.88 PV/YP Caustic Stroke 10" MFG MFG Fl Collar 1 22 Gels Bicarb SPM Type Type 1 jt Csq 46.50 PH /Cake Bar GPM S/N S/N Latch Baffle Pl. 0.00 On /Sand LIG Pump 2 Jets Jets 29 jts csg 1341 27 Solids Baranex Liner 5.5" Out Out X/O 1.42 WL Extend Stroke 9" In In TAMACP 8.47 CA/CL Citric SPM Footage Footage 1 jt Csg 46 70 Filler Fiber /SD GPM Hours Hours Stg Tool 2 20 Time Distribution TGPM Ft/Hr Ft/Hr 100 its Csg 4671 56 Activity Previous Daily Cumm AV /DP Grade Sub- Hang -UJt 24.26 Drilling 258 1/2 AV /DC Hours On Lithology Total BHA is 1'> '9 Survey 151/2 HSI BHA Ser Rig 41/2 JetVel Motor Trip 98 ECD Shock BG Gas W &R 16 1/2 1 Hydstc Jars C Gas Cut On Line 0 Casing BOP Trip Gas Repairs 19 Size 51/2" Deviation Weights Circ/Cond 148 Depth 6192'KB BHA WT Cementers 111/2 Burst 7740# DP/VVT WOC 20 1/2 Z Size String Wt DO Cement 0 Depth Pick UP Run Csg 26 1/2 Burst Slack Off NU BOP 32 1/2 3 Liner Drag Weld Head 6 ID 4 892 Torque Pres Test 38 Drift 4.767 #2stk/bit #1stk/bit Jet Pits 0 14 Test 2500# #2stk/sur #1stk/sur Fishing 0 Accidents None Log 11 Safety Mtgs: Fork Lift Safety Other 62 7 Cleaning Pits Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 5,940 Man Hours Toolpusher 2 12 792 Company Man 1 24 786 Mud Logger 576 Casing Crew 86 Cementers 160 Mud Engineer 792 Other 3 12 550 3:' Daily/Total Haul To Total 1292.8 SPR Strokes/Pressure h I #1 Strokes/Pressure #2 'STR /FiIVDisp 1 0000 0300 3 N/D ouble, annular, choke line 0300 0500 2 N/U tree test pack -off to 5000# test for 20 minutes OK 0500 1200 7 LDDP from demck 1200 2400 12 Clean mud pits assist rig down of Schlumberger cement equipment flush mud pumps, lines, gas buster. Rig released from drilling operations a 2400 hours on 3 -19 -06 Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 3,000 44,885 1,000 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full «.m... C.,, "g".», w.....uxw 17..6 .NII. DaMe cancer In rant oong Rem Nee. o., 3..., IRON CREEK ENERGY GROUP lt CODY, WYOMING so (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation Rigging Down Load Out Rig Depth 6233' Date 03/20/06 Day 35 PTD 4702'KB -609TKB DMC i WOB 0 Well Northern Dancer #1 AFE AK05001 CMC d is RPM 0 Legals S1- T17N -R4W Seward Mer DWC 3 24HrFtge 0 Pump Psi. 0 weather Lt. Snow -Cold CWC t Hrs /Drl 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) Gel Pump 1 Bit Bit Fl. Shoe 1.31 Vis (In Out) Carbonox Liner 5" Size Size 1 jt Csq 46.88 PV/YP Caustic Stroke 10" MFG MFG Fl. Collar 1.22 Gels Bicarb SPM Type Type 1 jt Csq 46.50 PH /Cake Bar GPM S/N S/N Latch Bafle Fl. 0 00 OiVSand LIG Pump 2 Jets Jets 29 its Csq 1341.27 Solids Baranex Liner 5.5" Out Out X/O 142 WL Extend Stroke 9" In In TAM ACP 8.47 CA/CL Citnc SPM Footage Footage 1 jt Csq 46.70 Filler Fiber /SD GPM Hours Hours Stg Tool 2.20 Time Distribution TGPM Ft/Hr Ft/Hr 100 jts Csg 4671.56 Activity Previous Daily Cumm AV /DP Grade Sub Hang -Wt 2426 Dulling 258 1/2 AV /DC Hours On Lithology Total BHA Survey 151/2 HSI BHA Ser Rig 41/2 JetVel Motor Trip 98 ECD Shock BG Gas W &R 16 1/2 Hydstc Jars C Gas Cut Dd Line 0 Casing BOP Trip Gas Repairs 19 Size 5 1/2" Deviation Weights Circ/Cond 148 Depth 6192'KB BHANVT Cementers 111/2 Burst 7740# DPNVT WOC 20 1/2 Size String Wt Dd Cement 0 Depth Pick UP Run Csg 26 1/2 Burst Slack Off NU BOP 35 1/2 Liner Drag Weld Head 6 ID 4 892 Torque Pres Test 38 Drift 4 767 #2stk/bit #lstk/bd Jet Pits 14 Test 2500# #2stk/sur #lstk/sur Fishing 0 Accidents None Log 11 Other 69 24 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rip 15 12 6,120 Man Hours Toolpusher 2 12 816 Company Man 1 12 810 Mud Logger 576 Casing Crew 86 Cementers 160 Mud Engineer 792 Other 3 12 586 Daily/Total From Haul To Total 1 S PR Strokes/Pressure t #1 l S Pressure #2 ISTR /Fill/D5p I 0000 2400 24 R/D and move drilling equipment load out drill pipe load out BOP's Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Baroid 2,500 45.885 500 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile# 307. 752.2539 Crews Full IRON CREEK ENERGY GROUP I CODY, WYOMING .4 (307) 587 -7232 DAILY DRILLING REPORT Operator Storm Cat Energy Operation R/D Move Equipment Off Loaction Depth 6233' Date 03/21/06 Day# 36 PTD 4702'- KB- 609TKB DMC j° WOB 0 Well Northern Dancer #1 AFE AK05001 CMC u• j RPM 0 Legals S1- T17N -R4W Seward Mer DWC 24HrFtge 0 Pump Psi. 0 Weather Clear -Cold CWC HrslDrl 0.00 Pen/Rate Mud Properties Mud Mixed Hydraulics Bit Data BHA Wt (In Out) Gel Pump 1 Bit Bit Fl. Shoe 1.31 Vis (In Out) Carbonox Liner 5" Size Size 1 jt Csq 46 88 PV/YP Caustic Stroke 10" MFG MFG Fl. Collar 1.22 Gels Bicarb SPM Type Type 1 jt Csg 46.50 PH /Cake Bar GPM S/N S/N Latch Butte PI. 0.00 Oil /Sand LIG Pump 2 Jets Jets 29 jts Csg 1341 27 Solids Baranex Liner 5.5" Out Out X/O 1.42 WL Extend Stroke 9" In In TAM ACP 8.47 CA/CL Citric SPM Footage Footage 1)t Csg 46.70 Filler Fiber /SD GPM Hours Hours Stg Tool 2.20 Time Distribution TGPM i Ft/Hr Ft/Hr 100 its Csg 4671.56 Activity Previous Daily Cumm AV /DP Grade Sub Hang -UJt 24 26 Drilling 258 1/2 -,:t AV /DC Hours On Lithology Total BHA Survey 151/2 HSI BHA Ser Rig 41/2 i JetVel Motor Trip 98 ECD Shock BG Gas W &R 16 1/2 Hydstc Jars C Gas Cut Dd Line 0 Casing BOP Tnp Gas Repairs 19 Size 5 1/2" Deviation Weights Circ/Cond 148 Depth 6192'KB BHA/WT Cementers 111/2 Burst 7740# DP/WT WOC 201/2 Size String Wt Dd Cement 0 Depth Pick UP Run Csg 26 1/2 1 0 Burst Slack Off NU BOP 35 1/2 Liner Drag Weld Head 6 ID 4 892 Torque Pres Test 38 Drift 4 767 #2stk/bit #lstk/bit Jet Pits 14 Test 2500# #2stk/sur #lstk/sur Fishing 0 Accidents None Log 11 Other 93 24 Total Man Hours Hands Hours Worked Previous Hours Daily Hours Cumulative Hours Total Rig 15 12 6,300 r. ',,f it; Man Hours Toolpusher 2 12 840 Company Man 1 12 822 F Mud Logger 576 Casing Crew 86 n6 Cementers 160 v. c Mud Engineer 792 Other 3 12 622 Daily/Total m Haul To Total 1806.9 SPR Strokes/Pre su a #1 Strokes/Pressure es Pressure #2 ISTRIFi9/Disp I 0000 2400 24 R/D move drilling rig off location. Clean out cuttings tank, water tank, excess mud tank. Haul to Emerald yard Palmer, AK Other man hours Supervisor Tom Majors Contractor Kuukpik 5 Fuel on Hand Fuel Used Fuel used Fuel used Toolpusher Otto Previous Daily Cumulative Mud Company Garold 46,385 Total Mud Engineer Richardson TOTAL Rig Phone 907. 223.2804 Mobile 307-752-2539 Crews Full c a(---........., w. Dare am"iw,.,.,, w. ".1,.,"pmam IRON CREEK ENERGY GROUP I CODY, WYOMING s>' ,i (307) 587-7232 Daily Drilling Report Sample for torm Cat Northern Dancer #1 Page 1 of 2 Maunder, Thomas E (DOA) From: Corri Feige [ags @mtaonline.net] Sent: Friday, January 25, 2008 10:35 AM To: Maunder, Thomas E (DOA) Subject: RE: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Hi Tom I also found the summaries that we were emailing to John Crisp and Winton. I'll forward those to you presently. They will not have the cost information and are in more of a narrative form, taken from the drillers daily sheets. Corri From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Friday, January 25, 2008 10:29 AM To: Corri Feige Subject: RE: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Corri, That looks to have sufficient information. One thing, generally cost information is not included in the reports we send to file. In addition to the cost sheet, there is a daily and cumulative cost shown on the report. Call or message with any questions. Tom Maunder, PE AOGCC From: Corri Feige [mailto:ags @mtaonline.net] Sent: Friday, January 25, 2008 10:13 AM To: Maunder, Thomas E (DOA) Subject: Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Importance: High Hi Tom. Please see attached Daily Drilling Report. If this does not contain the information that you need, please let me know what additionally you would require and we will get it put together. Have a nice weekend. Cheers, Corri 3/21/2008 Daily Drilling Report Sample for Storm Cat Northern Dancer #1 Page 2 of 2 Corri Feige The Castle Mountain Group, Inc. (Regulatory, Permitting, and Project Management Services) PO Box 1208 19900 E. Chickaloon Road Chickaloon, AK 99674 (907) 232 -1192 (907) 745 -7864 (fax) Email: ads @mtaonline,net DISCLAIMER: The information in this email and in any attachments is confidential and may be privileged. If you are not the intended recipient, please destroy this message, delete any copies held on your systems and notify the sender immediately. You should not retain, copy or use this email for any purpose, nor disclose all or any part of its content to any other person. 3/21/2008 APR 2 April 12, 2006 Mr. Robert Crandall Petroleum Geologist Alaska Oil Gas Conservation Commission 0 6 333 W. 7 Avenue, Suite 100 0 if Anchorage, Alaska 99501 Re: Northern Dancer #1 Application for Annular Disposal Dear Mr. Crandall: On behalf of Storm Cat Energy Corporation, I formally withdraw from consideration the application for annular disposal of fluids for the Northern Dancer #1 well. This application was submitted to Alaska Oil Gas Conservation Commission on March 10, 2006. Please contact me if you require any further information at 907 273 -1640. Regards, George Pollock Construction/Operations Manager Baker Energy Alaska Re: Northern Dancer #1 top of formation Subject: Re: Northern Dancer #1 toga formation From: Robert Crandall <bob crandall@a admin.state.ak,us> Date: Tue, 14 Mar 2006 07:52:40 -0900 TO: Mike Belowich <m @aak..n CC: Winton G Aubert inton�aubert @ad in:state,ak us>, dan amount. <dan seamount�min.state.ak Mike; Thanks, we can evaluate your application for annular disposal once we know the formation water salinity at the surface casing shoe. Density porosity and resistivity logs would be optimal but sonic porosity is ok. I hope everything is going well Cheers BC Mike Belowich wrote: Bob, Tom Majors wanted me to respond to your question on the depth to the top of the Tyonek Formation in the Northern Dancer #1 exploratory well being presently drilled near Horseshoe Lake. I am well site geologist for this well. We hit the top of Tyonek at 870 feet below the surface which I think has a true topographic elevation of 204 feet at this location. Our surface casing was set to 950 feet or 80 feet into the formation. I don't have salinity readings as of yet which is another of your questions. Will try to get that info to you on Tuesday. If you have any questions, I can be reached on my cell phone at (907) 232 -9538. Mike Belowich Belowich Coal Consulting 1 of 1 3/14/2006 8:08 AM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Alaska 0' (2 F Cons. Commission ANNULAR DISPOSAL APPLICATION i.ai;i,if31, 6 20 AAC 25.080 1. Operator Name: Storm Cat Energy Corporation 3. Permit to Drill No: 206-004 4. API Number. 50- 009- 20031 -00 2. Address: 1125 17th Street 5. Well Name: Northern Dancer #1 Suite 2310 Denver, CO 80202 6. Field: 7. Publicly recorded wells 8. Stratigraphic description: a) Interval exposed to Tyonek Formation sland Sandstone a) All wells within one- open annulus: quarter mile: NA b) Waste receiving Tyonek Forma Bell Island Sandstone zone: b) water wells within Two (2) Domestic Water Wells (per WELTS) one mile: 1) Del Birch, well depth 40' c) Confinement: 950' to T• 2) S. Sterling, well depth 60' 9. Depth to base of 10. Hydrocarbon zones permafrost: NA above waste receiving zone: 11. Previous volume disposed in annulus and date: 12. Estimated slurry density: 13. Maximum anticipated pressure at shoe: NA 10.2 I Estimated 550 psi 14. Estimated volume to be disposed with this request: 15. be disposed: 0 750 bbl F ter Ben 1 ent Water 16. Estimated start date: March 15, 2006. )611 17. Attachments: Well Schematic (Include MD and TVD) 1" ement Bond Log (if required) FIT Records w/ LOT Graph 0 Surf. Casing Cementing Data El Other 18. I hereby certify that the foregoing is true and correct best of my knowledge. Signature: Title: Vice President, Operations USA Printed Keith Knapstad Phone (303)991 -5070 March 10, 2006 Name: Number: Date: Commission Use Only Conditions of approval: LOT review and approval: Subsequent form Approval o required: number: �X Approved APPROVED BY by: COMMISSIONER THE COMMISSION Date: O RIGNAL RBDMS BR, APIA 3 2006 Form 10 -403AD Rev.6/2004 INSTRUCTIONS ON REVERSE Submit in Duplicate Schiumberger ementing Job Report CemCAT v1.0 Well Northern Dancer 1 Client Stormcat Field Wildcat SIR No. 2200941068 Engineer Job Type 13 3/8" Conductor Pipe Country United States Job Date 02 16 2006 Time Pressure Rate Density Pressure Messages ovlvsrr 20.0 18:04:28 Start Pumping Water Shutdown Reset Total, Vol 2.03 bbl 18:09:00 Pressure Test Lines Start Pumping Water W/ Red 18:14:00 Reset Total, Vol 2.71 bbl Shutdown Start Pumping Water Shutdown Reset Total, Vol 10.11 bbl 18:19:00 Start to Batch Up Tub Reset Total, Vol 0.40 bbl 18:24:00 Start Cement Slurry 18:29:00 18:34:00 18:39:00 Shutdown Drop Top Plug Start Displacement 18:44:00 Rig Pumps To Displace 18:49:00 Bump Top Plug Stopped Acquisition 18:56:21 hh:mm:ss 0.00 1000 2000 3000 4000 5000 000 20 40 6.0 L0 100 rA 10.0 15.0 10.0 250 1 0.00 1000 21100 3000 4000 5000 alv+ra uxn PSI -000 0 0000 B/N 1.8/G PSI 02/18/2006 20:09:31 0 Customer. scat y Maw District: KENAI Representative: Tom Majors DS Supervisor. Albin Hale Job Date: 02 -16 -2008 Welt Northern Dancer 41 Time Treating Pressure WHP Flow Rate CMT DENS CMT STG VOL Volume mm:dd:yyyy:hh:mm:ss psi psi bbUmin lbtgal bbl bbl 02:18:2006:18:04:28 125 121 0.1 -3.13 0.0 0.0 02:18:2006:18:04:58 -4 -0 0.1 0.05 0.0 0.0 02:18:2006:18:05:04 Start Pumping Water 02:18 :2006:18:05:04 -3 -2 0.5 0.05 0.0 0.0 02:18:2008:18:05:28 -5 -0 0.9 0.05 0.3 0.3 02:18:2006:18:05:59 9 25 1.3 0.05 0.9 0.9 02:18:2008:18:08:29 20 28 1.3 0.05 1.5 1.5 02:18:2008:18:06:51 Shutdown 02:18:2006:18:08:51 18 7 1.0 0.04 2.0 2.0 02:18:2008 :18:08:59 13 11 0.1 0.04 2.0 2.0 02:18:2006:18:07:04 Reset Total, Vol 2.03 bbl 02:18:2006:18:07:04 13 9 0.1 0.04 2.0 2.0 02:18:2006:18:07:29 17 17 0.1 0.05 0.0 2.1 02:18:2008:18:07:59 37 36 0.0 0.05 0.1 2.1 02:18:2006:18:08 :29 35 35 0.0 0.05 0.1 2.1 02:18:2006:18:08:59 559 560 0.0 0.05 0.1 2.1 02:18:2006:18:09:29 531 533 0.0 0.05 0.1 2.1 02:18:2008:18:09:59 1134 1134 0.0 0.05 0.1 2.1 02:18:2008:18:10:09 Pressure Test Lines 02 :18:2008:18:10:09 1123 1124 0.0 0.05 0.1 2.1 02:18:2008:18:10:29 4 6 0.0 0.05 0.1 2.1 02 :18:2006:18:10:59 8 10 0.1 -3.13 2.2 4.2 02:18:2008:18:11:29 8 11 0.1 0.05 2.2 4.3 02:18:2006:18:11:59 13 19 0.3 0.05 2.4 4.4 02:18:2006:18:12:29 5 4 0.4 0.04 2.5 4.8 02:18:2006:18:12:59 8 7 0.0 0.04 2.7 4.7 02:18:2006:18:13:29 8 10 0.0 0.04 2.7 4.7 02:18:2008:18:13:34 Start Pumping Water Wt Red Dye 02:18:2006:18:13:34 39 31 0.1 0.04 2.7 4.7 02:18:2006:18:13:35 Reset Total, Vol 2.71 bbl 02:18:2006:18:13:35 0 2 0.6 0.04 2.7 4.7 02:18:2008:18:13:59 18 25 2.3 0.04 0.8 5.3 02 :18:2006:18:14:29 9 28 2.4 8.30 1.7 6.5 02:18:2006:18:14:59 9 81 2.4 8.34 2.9 7.7 02:18:2006:18:15:29 25 43 3.1 8.34 4.5 9.2 02:18:2008:18:15:48 Shutdown 02:18:2008:18:15:46 9 14 1.8 8.34 5.3 10.1 02:18:2008:18:15:54 Start Pumping Water 02:18 :2006:18:15:54 19 17 1.2 8.34 5.5 10.2 02:18:2008:18:15:59 24 21 1.2 8.34 5.8 10.3 02:18 :2008:18:16:29 37 39 2.4 8.35 6.7 11.5 02:18:2006:18 :18:59 39 38 2.4 8.35 7.9 12.8 02:18:2008:18:17:30 29 67 2.4 8.34 9.1 13.9 02:18:2006:18:17:53 Shutdown 02:18:2008:18:17:53 19 18 1.9 8.34 10.1 14.8 02:18 :2006:18:18:00 19 20 0.0 8.34 10.1 14.8 02:18 :2006:18:18:09 Reset Total, Vol 10.11 bbl 02:18:2008:18:18:09 18 17 0.0 8.34 10.1 14.8 02:18 :2008:18:18:30 13 14 0.0 8.34 0.0 14.8 02:18 :2008:18 :19:00 29 33 0.0 8.34 0.4 15.2 02:18 :2008:18:19:30 30 33 0.0 8.34 0.4 15.2 02:18:2008:18:20:00 30 33 0.0 8.34 0.4 15.2 02:18:2006:18:20:30 30 32 0.0 8.31 0.4 15.2 02:18:2006:18:21:00 29 32 0.0 8.38 0.4 15.2 02:18:2006:18:21:26 Start to Batch Up Tub 0218:2006 :18:21:28 29 33 0.0 8.39 0.4 15.2 02:18:2006:18:21:30 29 33 0.0 8.40 0.4 15.2 02:18:2006:18:21 :49 Reset Total, Vol 0.40 bbl 02:18:2006:18:21:49 29 33 0.0 8.39 0.4 15.2 02:18:2006:18:22 :00 30 32 0.0 8.75 0.0 15.2 02:18:2008:18:22:30 30 31 0.0 9.29 0.0 15.2 02:18:2006:18 :23:00 30 31 0.0 9.55 0.0 15.2 02:18:2008:18:23:30 30 31 0.0 9.91 0.0 15.2 02 :18:24:00 29 31 0.0 11.52 0.0 15.2 0218:2008:18:24 :30 30 31 0.0 14.24 0.0 15.2 02:18:2006:18:25:00 30 31 0.0 15.94 0.0 15.2 02 :18:2006:18:25:30 31 31 0.0 15.94 0.0 15.2 02:18:2006:18:28:00 30 32 0.0 15.94 0.0 15.2 02:18 :2008:18:26:30 30 31 0.0 15.94 0.0 15.2 02:18:2006:18:27:00 29 31 0.0 15.95 0.0 15,2 02:18:2006:18:27:30 31 31 0.0 15.95 0.0 15.2 0218:2006:18:28:00 10 9 0.0 15.95 0.0 15.2 02:18:2006:18:28:20 Start Cement Slurry 02:18:2006:18:28:20 23 29 1.5 -3.13 0.0 15.3 02:18:2008:18:28:30 35 38 0.8 -3.13 0.3 15.5 02:18:2006:18:29:01 28 28 0.9 15.87 0.7 16.0 1 02:18:2006:18:29:31 270 225 2.8 16.38 2.1 17.3 02:18:2006:18:30:01 155 172 2.9 15.32 3.5 18.8 Page 1 of 2 0 Well: Northern Dancer S 1 Job Date: 02 -16 -2008 1 Time Treating Pressure WHP Flow Rate CMT DENS CMT STG VOL Volume mm:dd:yyyy:hh:mm:ss psi psi bdlmin Iblgal bbl bbi 02:18:2006:18:31:01 220 187 2.8 16.15 6.4 21.6 02:18:2006:18:31:31 265 345 3.3 15.67 7.9 23.2 02:18:2006:18:32:01 334 362 4.6 15.69 9.9 25.2 02:18 :2008:18:32:31 485 380 5.1 15.79 12.3 27.5 02:18:2006:18:33 :01 360 452 5.1 15.83 14.8 30.0 02:18:2006:18:33:31 451 408 5.1 15.89 17.3 32.6 02:18:2006:18:34:01 584 500 5.1 15.78 19.9 35.1 02:18:2006 :18:34:31 574 488 5.1 15.94 22.4 37.6 02:18:2006:18:35:01 319 581 5.1 16.25 24.9 40.2 02:18:2006:18:35:31 442 492 5.1 15.60 27.5 42.7 02:18:2006:18:36:01 367 558 5.1 15.53 30.0 45.2 02:18:2006:18:36:31 550 447 5.1 15.81 32.5 47.8 02:18:2006:18:37:01 545 446 5.1 15.88 35.1 50.3 02:18:2008:18:37:31 563 478 5.1 15.95 37.6 52.8 02:18:2008:18:38:01 490 354 5.1 15.71 40.1 55.4 02:18:2006:18:38:31 221 367 4.0 16.23 42.7 57.9 02:18:2008:18:39:01 110 89 2.4 16.23 44.6 59.8 02:18:2006:18:39:03 Shutdown 02:18:2006:18:39:03 6 7 0.2 16.24 44.6 59.8 02:18:2006:18:39:08 Drop Top Plug 02:18:2006:18:39:08 8 13 0.0 16.23 44.6 59.8 02:18:2006:18:39:31 8 11 0.0 16.23 44.6 59.8 02:18:2006:18:40:02 10 9 0.0 16.23 44.8 59.8 02:18:2006 :18:40:32 9 11 0.0 16.24 44.6 59.8 02:18:2008:18:41:02 9 11 0.0 18.24 44.6 59.8 02:18:2006:18:41:32 8 10 0.0 18.24 44.6 59.8 02:18:2006:18:42:02 8 10 0.0 16.24 44.8 59.8 02:18:2006:18:42:08 Start Displacement 02:18:2006:18:42:08 36 36 0.0 16.24 44.6 59.8 02:18:2008:18:42:32 67 72 5.3 16.24 45.7 60.9 02:18:2008:18:43:02 8 11 0.1 16.24 46.7 62.0 02:18:2006:18:43:32 9 10 0.1 16.24 46.8 62.0 02:18:2006:18 :44:02 8 11 0.2 16.24 46.8 82.1 02:18:2006:18:44:25 Rig Pumps To Displace 02 :18:2006:18:44:25 9 10 0.1 16.24 48.9 62.1 02:18:2006:18:44:32 8 10 0.1 16.24 48.9 62.2 02:18 :2006:18:45:02 7 10 0.1 16.24 47.0 82.2 02:18:2006:18:45:32 8 11 0.1 18.24 47.0 62.3 02:18:2006:18:46:02 8 10 0.1 18.25 47.1 62.3 02:18:2006:18:46:32 6 10 0.1 16.25 47.2 62.4 02:18 :2006:18:47:02 6 10 0.1 16.25 47.2 62.5 02:18:2006:18:47:32 -0 3 0.0 16.25 47.3 62.5 02:18:2006:18:48:02 -0 3 0.0 16.25 47.3 62.5 02:18:2006:18:48:32 -0 3 0.0 18.25 47.3 62.5 02 :18:2006:18:49:02 -1 3 0.0 16.25 47.3 62.5 02:18:2006:18:49:32 -1 3 0.0 16.25 47.3 62.5 02:18:2008:18:50:02 -1 3 0.0 16.25 47.3 62.5 0218:2006:18:50:32 -1 3 0.0 16.25 47.3 62.5 02:18:2006:18:51:02 -1 3 0.0 16.25 47.3 82.5 02:18:2008:18:51:33 -1 3 0.0 16.25 47.3 82.5 02:18:2006:18:52:03 -1 3 0.0 16.25 47.3 62.5 02:18:2006:18:52:10 Bump Top Plug 02:18:2006:18:52:10 -1 3 0.0 16.25 47.3 62.5 02 :18 :2006:18:52:33 -1 3 0.0 16.28 47.3 62.5 02:18:2008:18 :53:03 -1 3 0.0 16.26 47.3 62.5 02:18:2006:18:53:33 -0 3 0.0 18.26 47.3 62.5 02:18:2006:18 :54:03 -1 3 0.0 16.26 47.3 62.5 02:18:2008:18:54:33 -1 3 0.0 16.26 47.3 62.5 02:18 :2006 :18:55:03 -1 3 0.0 16.26 47.3 62.5 02:18:2006:18:55:33 -1 4 0.0 16.28 47.3 62.5 02:18:2006:18:56:03 -2 3 0.0 16.26 47.3 62.5 Page 2 of 2 II Schlumberger ementing Job Report CemCAT v1.0 Well Northern Dancer 1 Client Stormcat Field Wildcat SIR No. 2200941069 Engineer Albin Hale Job Type Surface Country United States Job Date 02 -22 -2006 Time Pressure Rate Density Pressure Messages 16:59:06 y 1 Start Pumping Water -1...T.. Shutdown 17:04:00 f J Pressure Test Lines i-._ Start Pumping Water w /Red Dy Start Pumping Water 17:09:00 Shutdown Start Pumping Spacer 17:14:00 Start to Batch up tub Reset Total, Vol 17.28 bbl 17:19:00 End Spacer Start Mixing Lead Slurry 17:24 :00 17:29:00 17:34:00 I Start Mixing Tail Slurry 17:39:00 l_ Red Dye at Shakers 17:44:00 Shutdown Shutdown Reset Total, Vol 95.85 bbl 17:49:00 Start Displacement Rig Pumps To Displace 17:54:00 17:59:00 Lower Pump Rate 18:04:00 Bump Top Plug Bleed Off Pressure 18:09:18 Stopped Acquisition iMt:mm:ss wee 1000 2000 3000 4000 5000 0.00 3.0 4.0 6.0 0.0 100 6.0 100 160 20A 31.0 0.00 1000 2000 1000 4000 0000 4000010100016 PSI 8/M 1.8/6 PSI 02/22/2006 18:10:27 Customer. ,scat District: KENAI Representative: Tom Majors DS Supervisor. AlbM Hale Job Date: 02 -22 -2006 Wel: Northern Dancer 11 1 Time Treating Pressure WHP Flow Rate CMT DENS CMT STG VOL Volume mm:dd:yyyy:hh:mm:ss psi psi bbl/min lb/gal bbl bbl 02:22:2006:16:59:06 86 98 0.0 8.35 0.0 0.0 02:22:2006:16:59:27 Start Pumping Water 02:22:2006:16:59:27 41 51 0.3 8.35 0.0 0.0 02:22:2006:16:59:36 9 31 0.7 8.35 0.1 0.1 02:22:2006:17:00:08 62 72 2.3 8.35 1.0 1.0 02:22:2006:17:00:31 Shutdown 02:22 :2006:17:00:31 65 74 2.4 8.35 2.0 2.0 02:22:2006:17:00:36 12 32 0.0 8.35 2.1 2.1 02:22:2006:17:01:06 10 17 0.0 8.35 2.1 2.1 02:22:2008:17:01:36 7 12 0.0 8.35 2.1 2.1 02:22:2008:17:02:06 233 250 0.0 8.35 2.1 2.1 02:22:2006:17:02:37 655 871 0.0 8.35 2.1 2.1 02:22:2006:17:03:07 3120 3141 0.0 8.35 2.1 2.1 02:22:2006:17:03:37 3072 3090 0.0 8.35 2.1 2.1 02:22:2006:17 :03:49 Pressure Test Lines 02:22:2006:17:03:49 3062 3080 0.0 8.35 2.1 2.1 02:22:2006:17:04:07 38 18 0.0 8.35 2.1 2.1 02:22:2006:17 :04:37 -1 10 0.1 8.35 2.2 2.2 02:22:2006:17:05:07 -4 6 0.1 8.35 2.2 2.2 02:22:2006:17:05:34 Start Pumping Water w/Red Dye 02:22:2006:17:05:34 12 23 0.4 8.35 2.3 2.3 02:22:2006:17:05 :37 10 21 0.4 8.35 2.3 2.3 02:22:2006:17:06:07 86 94 2.8 8.36 3.4 3.4 02:22:2006:17:06:37 64 124 2.8 8.37 4.8 4.8 02:22:2008:17:07:07 81 78 2.7 8.37 6.2 6.2 0222:2006:17:07:29 Start Pumping Water 02:22:2006:17:07:29 106 86 2.7 8.37 7.1 7.1 02:22:2008:17:07:37 e4 99 2.7 8.37 7.5 7.5 02:22:2006:17:08:07 82 158 3.7 8.37 9.2 9.2 02:22:2006:17:08 :37 132 114 3.7 8.37 11.0 11.0 02:22:2006:17:09:07 114 149 3.7 8.37 12.8 12.8 02:22:2006:17:09:37 138 108 3.7 8.37 14.6 14.6 02:22:2006:17:10:07 90 167 3.7 8.37 18.5 16.5 02:22:2006:17:10:19 Shutdown 02:22:2006:17:10:19 35 50 2.7 8.37 17.2 17.2 02:22:2006:17:10:37 18 28 0.0 8.37 17.3 17,3 02:22:200617:11:07 96 111 0.0 8.37 17.3 17.3 02:22:2006:1711:37 93 108 0.0 8.37 17.3 17.3 02:22:2006:17:11:38 Start Pumping Spacer 02:22:2006:17:11:38 93 108 0.0 8.37 17.3 17.3 02:22:2006:17:12:07 64 80 0.0 8.37 17.3 17.3 02:22:2006:17:12:37 56 72 0.0 8.37 17.3 17.3 02:22:2008:17:13:07 56 71 0.0 8.37 17.3 17.3 02:22:2006:17:13:37 58 72 0.0 8.43 17.3 17.3 02:22:2006:17:14 :08 57 72 0.0 8.40 17.3 17.3 02:22:2008:17:14:38 58 72 0.0 8.42 17.3 17,3 02:22:2006:17:14:57 Start to Batch up tub 02 :22:2006:17:14:57 58 72 0.0 8.53 17.3 17.3 02:22:2006:17:15:00 Reset Total, Vol 17.28 bbl 02:22:2006:17:15:00 58 72 0.0 8.64 17.3 17.3 02:22:2006:17:15:08 58 71 0.0 8.85 0.0 17.3 02:22:2006:17:15:38 58 72 0.0 10.16 0.0 17.3 02:22:2006:17:16 :08 58 72 0.0 11.76 0.0 17.3 02:222006:17:16:38 60 73 0.0 13.72 0.0 17.3 02:22:2006:17:17:08 64 77 0.0 13.51 0.0 17.3 02:22:2008:17:17:38 53 67 0.0 13.33 0.0 17.3 02 :22:2006:17:18:08 37 52 0.0 12.92 0.0 17.3 02:22:2008:17:18:38 37 51 0.0 12.87 0.0 17.3 02:22:2008:17:19:08 37 51 0.0 12.85 0.0 17.3 02:222008:17:19 :38 37 51 0.0 12.86 0.0 17.3 02:22:2008:17:19:44 End Spacer 02 :22:2006:17:19:44 37 50 0.0 12.86 0.0 17.3 02:22:2006:17:20:08 37 50 0.0 12.85 0.0 17.3 02:22:2006:17:20:38 -5 7 0.0 12.85 0.0 17.3 02:22:2006:17:20:52 Start Mixing Lead Slum) 02:22:2006:17:20:52 -2 9 0.3 12.84 0.0 17.3 02:22:2006:17:21:08 55 64 2.9 12.72 0.4 17.7 02:22:2006:17:21:38 125 123 2.8 12.85 1.8 19.1 02:22:2006:17:22:08 92 136 2.8 13.30 3.2 20.4 02:2±2008:17:22:38 124 175 3.6 12.52 4.8 21.9 02:22:2006:17:23:08 288 218 5.0 12.92 6.9 24.1 02:22:2006:17:23:38 328 275 4.9 13.46 9.3 26,6 02:22:2006:17:24:08 283 247 5.0 13.27 11.8 29.1 02:22:2006:17:24:38 238 286 5.0 12.91 14.3 31.6 02:22:2008:17:25:08 245 247 5.0 13.06 16.8 34.1 02:222008:17:25:39 278 286 5.0 13.31 19.4 36.6 02:22:2008:17:26:09 258 220 5.0 13.29 21.8 39.1 02:22:2006:17:28:39 256 223 5.0 12.97 24.3 41.6 Page 1 of 3 0 Well: Northern Dancer 1 Job Date: 02 -22 -2008 Time Treating Pressure WHP Flow Rate CMT DENS CMT STG VOL Volume mm:dd:yyyy:hh:mm:ss psi pal bbVmin lb /gal bbl bbl 02:22:2006:17 :27:39 208 277 5.0 13.17 29.3 46.6 02:22:2008:17:28:09 275 262 5.0 13.13 31.8 49.1 02 :22:2006:17:28:39 230 207 5.0 12.99 34.3 51.5 02:22:2006:17:29 :09 207 285 5.0 13.22 36.7 54.0 02:22:2006:17:29:39 227 310 5.0 13.32 39.2 58.5 02 :22:2006:17:30:09 257 268 5.0 13.25 41.7 59.0 02:22:2006:17:30:39 249 257 5.0 13.48 44.2 61.5 02:22:2006:17:31:09 114 152 3.3 13.47 46.3 63.6 02:22:2008:17:31:39 112 139 3.3 13.25 47.9 65.2 02:22:2006:17:32:09 113 121 3.3 13.13 49.6 66.9 02:22:2006:17:32:39 104 131 3.2 13.07 51.2 88.5 02:22:2006:17:33:09 101 140 3.5 13.02 52.8 70.1 02:22:2008:17:33:39 305 294 5.6 12.98 55.5 72.7 02:22:2008:17:34:09 63 76 2.3 12.97 57.3 74.5 02:22:2006:17:34:39 70 84 2.6 13.32 58.5 75.7 02:222006:17:35:09 75 107 2.6 14.60 59.8 77.0 02:22:2006:17 :35 :37 Start Mixing Tail Slurry 02:22:2006 :17:35:37 107 117 2.6 15.26 81.0 78.3 02:22:2008:17:35:39 116 141 2.6 15.25 61.1 78.3 02:22:2006:17:36:09 94 136 2.6 15.39 62.3 79.6 02:22:2006:17:36:39 182 248 3.4 15.78 63.9 81.2 02:222008:17:37:10 365 342 4.1 15.88 65.7 83.0 02:22 :2008:17:37:40 330 302 4.4 15.41 67.9 85.2 02:22:2006:17:38:10 220 199 3.3 15.70 69.7 87.0 02:22:2006:17:38:35 Red Dye at Shakers 02:22:2006:17:38:35 41 56 0.3 16.57 70.5 87.8 02:22:2006:17:38:40 45 60 0.3 16.66 70.5 87.8 02:22:2006:17:39 :10 85 114 0.8 16.41 70.7 88.0 02:22:2006:17:39:40 243 263 4.0 15.48 72.0 89.2 02:22:2006:17:40:10 303 298 3.9 18.12 73.9 91.2 02:22:2008:17:40:40 290 310 3.9 15.51 75.9 93.2 02:22:2006:17:41:10 245 397 3.9 15.99 77.9 95.2 02:22:2006:17:41:40 343 221 4.9 18.45 80.2 97.5 02:22:2Q06:17:42:10 20 39 1.1 15.23 82.4 99.7 02:22:2006:17:42:40 279 314 3.9 15.85 63.8 100.9 02:22:2006:17:43:10 347 329 3.9 18.24 85.5 102.8 02:22 :2006:17:43:40 95 109 2.3 15.10 87.4 104.7 02:22:2006:17:44:10 223 315 3.4 16.15 88.9 106.2 02:22:2006:17:44:40 198 204 3.5 15.23 90.6 107.9 02:22:2006:17:45:10 272 289 3.4 16.69 92.3 109.6 02:22:2008:17:45:21 Shutdown 02:22:2006:17:45:21 114 123 0.8 16.82 92.8 110.0 02:22:2008:17:45:40 124 143 0.9 16.08 93.0 110.3 02:22:2006:17:46:10 294 352 3.5 18.12 93.7 111.0 02:22:2006:17:46:40 280 358 4.3 16.15 95.5 112.8 02:22:2006 :17:46:46 Shutdown 02:22:2006:17:46:46 4 24 0.5 16.15 95.8 113.1 02:22:2006:17:46:49 Reset Total, Vol 95.85 bbl 02:22:2006:17:46 :49 8 26 0.0 16.15 95.8 113.1 02:22:2006:17:47:10 4 25 0.0 16.16 0.0 113.1 02:22:2006:17:47:40 5 25 0.0 16.15 0.0 113.1 02:22:2006:17:48:10 5 26 0.0 16.16 0.0 113.1 02:22:2006:17:48:41 4 24 0.0 16.16 0.0 113.1 02:22:2008:17:49:11 147 104 3.6 16.16 0.7 113.8 02:22:2006:17:49:33 Start Displacement 02:22:2006:17:49:33 205 258 5.8 16.17 2.7 115.8 02:22:2006 :17:49:41 165 234 5.8 16.17 3.4 116.6 02 :22:2006:17 :50:11 5 17 0.0 16.17 4.8 117.8 02:22:2006:17:50:41 0 17 0.0 16.17 4.8 117.8 02:22:2006:17:51:11 -2 16 0.0 16.18 4.6 117.$ 02:22:2006:17:51:41 -2 17 0.0 16.17 4.6 117.8 02:22:2006:17:51:50 Rig Pumps To Displace 02:22:2006:17:51:50 -2 17 0.0 18.17 4.6 117.8 02:22:2006:17:52:11 -3 16 0.0 16.18 4.6 117.8 02:222006:17:52:41 -4 16 0.0 18.18 4.6 117.8 02:22:2006:17:53:11 -5 16 0.0 16.18 4.6 117.8 02:22:2006:17:53:41 -5 18 0.0 16.18 4.6 117.8 02:22:2006:17:54 :11 -5 16 0.0 16.18 4.6 117.8 02:22:2008:17:54:41 -5 16 0.0 16.18 4.6 117.8 02:22:2008:17:55:11 7 30 0.0 16.18 4.6 117.8 02:22:2006:17:55:41 6 28 0.0 16.19 4.6 117.8 02:22:2006:17:56:11 7 28 0.0 16.19 4.6 117.8 02:22:2006:17:56:41 5 30 0.0 16.19 4.8 117.8 02 :22 :2006:17:57:11 8 28 0.0 16.19 4.6 117.8 02:22:2006 :17:57:41 -6 16 0.0 16.19 4.6 117.8 02:22:2006:17:58:11 -6 17 0.0 16.19 4.8 117.8 02:22:2006:17:58:41 -6 15 0.0 16.19 4.8 117.8 02:22:2008:17:59:11 -6 17 0.0 18.19 4.6 117.8 02:22:2006:17:59 :41 -6 17 0.0 16.19 4.6 117.8 02:22:2006:18 :00:12 -6 17 0.0 18.19 4.6 117.8 02:22:2006:18:00:42 -13 10 0.0 16.19 4.6 117.8 02:22:2006:18:01:10 Lower Pump Rate 02:22:2006:18:01:10 -13 10 0.0 16.19 4.6 117.8 02:22:2006:18:01:12 -12 10 0.0 16.19 4.6 117.8 Page 2 of 3 S Well: Northern Dancer #1 Job Date: 02-22-2006 I Time j Treating Pressure WHP Flow Rate GMT DENS GMT STG VOL Volume mrn:dd:yyyy:hh:mm:ss I P psi bbVmin lb/gal bbl WI 02:22:2006:18:01:42 -13 10 0.0 16,19 4.6 117.8 02:22:2008:18:02:12 -13 10 0.0 16.18 4.6 117.8 02:22:2006:18:02:42 -12 10 0.0 16.19 4.6 117.8 02:22:2006:18:03:12 -13 9 0.0 16.19 4.6 117.8 02:22:2006:18:03:42 -13 10 0.0 16.19 4.6 117.8 02:22:2006:18:04:12 -13 10 0.0 16.19 4.6 117.8 02:22:2008:18:04:42 -13 10 0.0 16.19 4.6 117.8 02:22:2006:18:05:12 -12 9 0.0 16.19 4.8 117.8 02:22:2006:18:05:42 -13 10 0.0 16.19 4.8 117.8 02:22:2006:18:05:51 Bump Top Plug 02:22:2006:18:05:51 -12 10 0.0 18.19 4.6 117.8 02:22:2006:18:06:12 -12 10 0.0 18.19 4.6 117.8 02:22:2006:18:06:42 -13 10 0.0 16.19 4.6 117.8 02:22:2006:18:07:12 -12 10 0.0 16.19 4.6 117.8 02:22:2006;18107:42 678 703 0.0 16.19 4.6 117.8 02:22:2006:18:08:00 Bleed Off Pressure 02:22:2006:18:08:00 634 654 0.0 16.19 4.6 117.8 02:22:2006:18:08:12 7 37 0.0 16.19 4.6 117.8 02:22:2006:18:08:42 -12 17 0.0 16.19 4.6 117.8 02:221008:18;0912 -12 13 0.0 16.19 4.6 117.8 Page 3d 3 Schiumberger ementing Job Report CemCAT v1.0 Well Northern Dancer 1 Client Stormcat Field wildcat SIR No. 2200941070 Engineer Albin Hale Job Type Top off Job Country United States Job Date 02 -23 -2006 Time Pressure Rate Density Messages 13:00:14 Batch up Tub 13:05:00 Reset Total, Vol 4.03 bbl Start Pumping Water 13:10:00 Start Cement Slurry Reset Total, Vol 1.96 bbl rrr^^^ Shutdown Stopped Acquisition 13:11:59 hh;mm:ss 0.00 2000 3000 4000 5000 0.00 t0 4.0 0.0 0.0 10.0 50 10.0 15.0 20.0 35.0 wainau:me PSI B/IN LB/G 02/23/2006 13:24:54 0 Customer scat Samkrie District KENAI Representative: Tom Majors DS Supervisor. Albin Hale Job Date: 02 -23 -2006 Wet Northern Dancer Si 1 Time Treating Pressure Flow Rate CMT DENS CMT STG VOL Volume mm:dd :yyyy:hh:mm:ss psi bbtmin Iblgal bbl bbl 02:23:2008:13:00:14 18 0.5 10.14 0.0 0.0 02 :23:2006 :13 :00:35 Batch up Tub 02:23:2006:13:00:35 19 0.6 11.83 0.2 0.2 02 :23:2006:13:00:44 18 0.5 12.58 0.3 0.3 02 :23:2006:13:01 :15 18 0.5 14.56 0.6 0.6 02:23:2006:13:01:45 19 0.5 15.03 0.8 0.8 02:23:2006:13:02:15 19 0.5 15.16 1.0 1.0 02:23:2006:13:02:45 19 0.5 15.30 1.3 1.3 02:23:2006:13:03:15 18 0.5 15.37 1.5 1.5 02 :23:2006:13:03:45 19 0.5 15.45 1.7 1.7 02:23:2006:13:04:15 18 0.4 15.58 2.0 2.0 02:23 :2006:13:04:45 18 0.4 15.85 2.2 2.2 02:23:2006:13:05 :15 18 0.4 15.67 2.4 2.4 02:23:2006:13:05:45 19 0.5 15.67 2.6 2.6 02:23:2006:13:06 :15 18 0.4 15.67 2.9 2.9 02:23:2006:13:06:45 18 0.4 15.65 3.1 3.1 02 :23 :2006:13:0715 18 0.4 15.70 3.3 3.3 02:23:2006:13:07:45 18 0.4 15.74 3.5 3.5 02:23:2008 :13 :08:15 17 0.5 15.76 3.8 3.8 02:23:2006 :13:08:45 17 0.4 15.79 4.0 4.0 02:23:2006:13:09:01 Reset Total, Vol 4.03 bbl 02:23:2006:13:09:01 17 0.1 15.79 4.0 4.0 02:23:2006:13:09:15 17 0.2 16.79 0.0 0.0 02:23:2006:13:09:44 Start Pumping Water 02 :23:2006:13:09:44 15 0.2 15.79 0.1 0.1 02:23:2006:13:09:45 18 0.2 15.79 0.1 0.1 02:23:2006:13:10:15 78 0.5 15.79 0.3 0.3 02:23:2006:13:10:45 19 1.1 15.79 0.6 0.6 02:23:2008 :13:11:15 29 1.3 15.79 1.2 1.2 02:23:2006:13:11:45 27 1.4 15.80 1.9 1.9 02:23:2006:13:12:15 98 2.4 15.80 2.8 2.8 02:23:2006 :13 :12:46 79 2.2 15.80 4.0 4.0 02:23:2006:13:13:16 31 1.3 15.81 4.9 4.9 02:23:2006:13:13:46 29 1.3 15.81 5.5 5.5 02:23:2008:13:14:05 Start Cement Slurry 02:23:2008:13:14:05 29 1.3 15.82 5.9 5.9 02:23:2006:13 :14:07 Reset Total, Vol 5.96 bpi 02:23:2006:13:14:07 30 1.3 15.81 6.0 6.0 02:23:2006:13:14:18 32 1.3 15.81 0.2 6.2 02:23:2006:13:14:46 41 1.3 15.82 0.8 8.8 02:23:2006:13 15:16 41 1.3 15.81 1.5 7.5 02:23:2006:13:15:48 43 1.3 15.82 2.1 8.1 02:23:2006:13:16:18 42 1.3 15.82 2.8 8.8 02:23:2006:13:16:46 42 1.3 15.83 3.5 9.4 02:23:2006:13 :17:16 Shutdown 02:23:2008:13:17:16 42 0.7 15.83 4.1 10.1 02:23:2006:13:17:46 11 0.1 15.83 4.2 10.1 Page 1 of 1 f 0 Northern Dancer #1 KUUKPIK 5 Page 1/2 DEPTH CASING PRESSURE STROKES #2 MUD VIS 02/25/06 FEET PSI PSI SPM SEC /QUART 0 500 0 5000 0 80 0 1 08:30 970 :35 :40 970 :45 980 FIT TFST AT 980 85l?PG :50 970 I 980 :55 118PSt 4 09:00 :05 :10 :15 961 20 980 :25 981 €€I :30 f _r- 35 :45 990 :55 10:00 :05 I i :10 j It :15 I :25 p DATA TRANSMITTAL RECORD In compliance with the requirements of 20 AAC 25.071, the following geologic information is hereby submitted to the Alaska Oil and Gas Conservation Commission. Well Name: Northern Dancer #1 Operator: Storm Cat Energy Corporation Date of TD: 14 March 2006 Depth of TD: 6233' 1.) Complete Mud Log Number of copies: 2 Type of media: 1 paper &r 1 CD (LAS &z PDF) 7 7 5 2.) Complete set of washed /dry samples Number of sets: Submitted 3/29/06) 1377 3.) Copy of log data Number of copies: Digital 1 Paper 1 Logging contractor: Schlumberger Wireline Services Date logs acquired: 15 March 2006 Digital file format(s): LAS PDS Log types acquired: "Platform Express Sonic, Dipmeter 41/ Submitted by: 7 Date: or Storm Cat Energy Co „?o ration) Received by: Date: j 1 1 A o m, (for Alaska Oil Gas Conservation Commission) 2 b 6 0 F,'1° 0 DATA TRANSMITTAL RECORD In compliance with the requirements of 20 AAC 25.071, the following geologic information is hereby submitted to the Alaska Oil and Gas Conservation Commission. Well Name: Northern Dancer #1 Operator: Storm Cat Energy (USA) Corporation Date of TD: March 14, 2006 Depth of TD: 6,233' Set B (13 boxes) of washing cuttings from Storm Cat Energy's Northern Dancer #1 well with the following box numbers and depth intervals: Box 1 243' 650' Box 2 650' 960' 1( Ct Box 3 960' 1,450' I Box 4 1,450 —1,850 Box 5 1,850' 2,250' Box 6 2,250' 2,700' Box 7 2,700' 3,100' Box 8 3,100' 3,550' Box 9 3,550' 4,160' t Box 10 4,160' 4,760' 9 20 Box 11 4,760' 5,300' r 3aska 011 Box 12 5,300' 5,970 m 'On Box 13 5,970' 6,233' Anchorag Submitted b Y Date: 3 %-1/1) 6 (for Storm Cat nergy (USA) Corporation) Received by: P a Date: Y N or Alaska Oil Gas Conservation Commission) 1 Weekly Report Storm Cats Northern Da #1 7,o 6 ©e zt Subject: Weekly Report Storm Cats Northern Dancer #1 From: Corri Feige <ags @mtaonline.net> Date: Fri, 17 Mar 2006 10:22:41 -0900 To: john_crisp @admin.state.ak.us, winton_aubert @admin.state.ak.us CC: Tom Majors' <tomm @ironcreekenergygroup.com> Good morning. Storm Cat's weekly report on the Northern Dancer #1 is as follows: 3/10/06: Hole diameter 8.5 Hole depth 5967', Mud Weight 10.3 Drilled hole from 5843' to 5967' then circulated and conditioned mud. Mud weight was increased from 9.5# to 10.3# over the course of the day in preparation for TOH for weekly BOP test. Flow was halted at mud weight of 10.1 increased to 10.3# for trip margin. 3/11/06: Hole depth 5967', Mud weight 10.8 John Crisp on location for BOP test. Prepared for BOP test, but well flowing again. Circulated and conditioned mud, increasing weight to 10.8 Detected salt water entry at 5967' (chlorides went from 600ppm to 3000ppm). Treated mud for clabbering and salt water. 3/12/06: Hole depth 5967', Mud weight 11.0 Circulated hole and increased mud weight to 11.0# to control flow in well. Tripped out of hole for BOP test. Tested BOP: 250 #/3500# on all equipment, Koomey test, choke manifold, kill valves, HCT, Hydril, top rams, IBOP, floor valve and blind rams. 3/13/06: Hole diameter 8.5 Hole depth 6057'. Mud weight 10.8, Tested Dart Valve (250/3500). Attempted to test lower pipe rams changed out lower pipe rams and tested (250/3500). Made up bit #8 (Reed 8 =HP61). TIH to 5700' and circulated 11.2# pill off bottom. Loss of fluid while circulating 8 bbls. TIH to 5967' and drilled ahead to 6057'. 3/14/06: Hole depth 6233', Mud weight 10.85 Drilled well from 6057' to 6233'. TD well at 6233'. Prepared to log well. Circulated and conditioned mud, pumped LCM sweep. Loggers arrived on location. Prepared to spot weighted pill on bottom and started TOOH at slow rate. 3/15/06: Hole depth 6233', Mud weight 10.9 Circulated and conditioned mud. Pulled pipe to 5700' to spot 11.2# weight pill. TOOH for open hole logs. Schlumberger ran Platform Express and FMI- Boreho e Comp. Sonic. Stuck tool on FM1 run. Freed `ool and stopped FMI rt,r. TCCH and tot.nd large chuck of shale stuck in pad. Released loggers. TIH with drill string, circulated and conditioned hole. 3/16/06: Hole depth 6233', mud weight 10.8 TIH with 8.5" bit to 6220'. Tag fill at 6220'- washed to bottom at 6233' and circulated bottoms up. Circulated and conditioned hole while waiting for cement to be Herded and delivered to location. Pulled up -hole to 5700' and sported 1 weighted pill. TOOH with drill pipe. 3/17/06: As of 0700 this morning, picking up casing crew tools to start running 5 casing. As always, should you have any questions about the information conta in this summary, please contact either Tom Majors at 307 -752 -2539 or myself at 1 of 2 3/17/2006 10:28 AM Weekly Report Storm Cats Northern Da. #1 907 -232 -1192. Sincerely, Corri Feige Corri Feige The Castle Mountain Group, Inc. (Regulatory, Permitting, and Geophysical Project Management) PO Box 1208 19900 E. Chickaloon Road Chickaloon, AK 99674 (907) 232 -1192 (907) 745 -7864 (fax) Email: ags@mtaonline.net DISCLAIMER: The information in this email and in any attachments is confidential and may be privileged. If you are not the intended recipient, please destroy this message, delete any copies held on your systems and notify the sender immediately. You should not retain, copy or use this email for any purpose, nor disclose all or any part of its content to any other person. Content -Type: app°icaticn /ms -tnef winmail.dat Content- Encoding: base64 2 of 2 3/17/2006 10:28 AM Storm Cat Northern Dancer #1 Weekly U Subject: Storm Cat Northern Dancer #1 Weekly Update From: Cord Feige <ags @mtaonline.net> Date: Fri, 10 Mar 2006 09:44:32 -0900 To: john_crisp @admin.state.ak.us, winton_aubert@admin.state.ak.us CC: 'Tom Majors' <tomm @ironcreekenergygroup.com> Good morning, Gentlemen. Storm Cat's weekly update is as follows: 3/3/06: Hole diameter 8.5 hole depth 3817', mud weight 9.2 Drilled interval from 3050' to 3817' without problems. Periodic deviation surveys continued with well staying within 1.5 degrees. 3/4/06: Hole depth 4002', mud weight 9.2 Drilled 3817' to 3998' before TOH for weekly BOP test. BOP test completed with no problems. TIH with bit #6 and did a precautionary ream from 3940' to 3998', then drilled ahead to 4002'. 3/5/06: Hole diameter 8.5 hole depth 4550', mud weight 9.15#. Drilled interval 4002' to 4550'. Changed pump swabs in #1 #2. Deviation survey at 4305' indicated 2.75 degree deviation. 3/6/06: Hole depth 4906' mud weight 9.15#. Drilled 8.5" hole from 4550' to 4704'. Deviation survey at 4649' indicated 2.5 degree deviation. Drilled from 4704' to 4906'. Deviation survey at 4830' indicated 3 degree deviation. Circulated bottoms up and spotted LCM pill. 3/7/06: Hole depth 5112', mud weight 9.1 Changed bit and serviced rig. TIH to 4863' and circulated bottoms up. TIH to 4906' and showed no fill in the hole. Drilled new hole from 4906' to 5112'. 3/8/06: Hole diameter 8.5 hole depth 5518', mud weight 9.15 Drilled ahead 5112' to 5414'. Deviation of 4.5 degrees at 5353'. Drilled to 5444' and circulated while changing piston in pump #2. Drilled ahead to 5518'. 3/9/06: Hole depth 5843', mud weight 9.3#. Drilled from 5518' to 5570'. Conditioned mud and drilled to 5574'. Serviced pump #2 then drilled 5574' to 5818', and began to increase mud weight in prep for bit trip and weekly BOP test. Deviation survey at 5782' showed 3 degrees. Drilled to 5834' and did rig repair on top drive and change IBOP. Drilled ahead to 5843.' 3/10/06: As of 0700 this morning, hole depth at 5950' and mud weight is at 9.5 Will TOH for bit change and weekly BOP test today. If you have any questions, or need any additional information, please contact either myself at (907) 232 -1192 or Tom Majors at (307) 752 -2539. Sincerely, Cord Feige Cord Feige 1 of 2 3/10/2006 9:59 AM Storm Cat Northern Dancer #1 Weekly we 00194 Subject: Storm Cat Northern Dancer #1 Weekly Update From: Cord Feige <ags @mtaonline.net> Date: Fri, 03 Mar 2006 14:50:22 -0900 To: john_crisp @admin.state.ak.us, winton_aubert@admin.state.ak.us CC: 'Tom Majors' <tomm @ironcreekenergygroup.com> Good day, Gentlemen. Provided below is the weekly summary for the Northern Dancer #1. 2/26/06: Hole diameter 8.5 Depth 1451', Mud wt 8.85. Drilling suspended in order to correct deviation in hole. Ordered directional tool to straighten hole. Circulated hole without tools. 2/27/06: Depth 1451', Mud wt 8.8. Directional tools on location (Alaska Pipe Recovery E -line unit Sperry Gyro tool). Ran gyro from surface to 1440', with readings every 100', and a final reading at 1440'. Well was 7.69° off vertical at 1440', heading south with a 67' displacement. 2/28/06: Depth 1848', Mud wt 9. Correcting deviation. Drilled ahead, running periodic gyro surveys to gradually bring hole back to vertical. Hole deviation at 0.18° at 1803'. Surveyed again at 1848' bit depth. 3/01/06: Depth 2399', Mud wt 9.1. Drilled ahead, surveying at approximately 30' intervals. Well staying within 1° of vertical. Changed swab on pump #1 at 2337'. 3/02/06: Hole diameter 8.5 Depth 3050', Mud wt 9.15. Continued deviation surveys as drilled ahead with no problems. Well maintaining vertical within 1°. 3/03/06: 0800 morning report from rig indicates depth 3200' and drilling ahead with no problems. BOP test scheduled for Saturday, 3/4/08. If you have questions about the information contained in this report, please contact Tom Majors at 307 752 -2539 or myself at 907 232 -1192. Sincerely, Corri Corri Feige The Castle Mountain Group, Inc. (Regulatory, Permitting, and Geophysical Project Management) PO Box 1208 19900 E. Chickaloon Road Chickaloon, AK 99674 S (907) 232 -1192 (907) 745 -7864 (fax) Email: ags(a.mtaonline.net 1 of 2 3/6/2006 9:14 AM Coordinate Change For Northern Dancer #1 7.erto effit Subject: Coordinate Change For Northern Dancer #1 From: Dennis Higgins <DHIGGINS @mbakercorp.com> Date: Thu, 02 Feb 2006 12:07:56 -0500 To: winton_aubert@admin.state.ak.us CC: Chris Hogle <CHogle @mbakercorp.com George Pollock <GPollock @mbakercorp.com Mark McBroom <MMcBroom @mbakercorp.com ags @mtaonline.net, keith @stormcatenergy.com Good Morning Winton, As we discussed yesterday, we have moved the location of the conductor 10 feet to avoid an eratic at approximately 20' depth that was giving the contractor trouble. The new metes and bounds description is: 2153' FSL 2497' FWL, S 1 T17N R4W SM Thank you for your speedy response to our request yesterday. Best Regards, Dennis Higgins Dennis Higgins Manager, Engineering Projects Huber /Baker Northern Business Unit 307 673 -8800 x229 office 307 752 -0870 mobile II 1 of 1 2/2/2006 8:13 AM 1111 4/.0040 ARLEN EHM 4/E RECEIVED Geological Consultant JAN 1 0 20C1h AAPG Certified Petroleum Geologist Certification #2503 2420 2420 Foxhall Drive {(8 Anchorage, AK 99504 Anchorage Phone: 907- 333 -8880 *Fax: 907- 333 -3454 E -mail: arlenehm @gci.net January 10, 2006 Ms. Lydia Miner C -Plan Specialist Alaska Dept. of Environ. Conservation Division of Air Water Quality 555 Cordova Street Anchorage, AK 99501 -2617 Mr. Steve Davies Petroleum Geologist AOGCC 333 W. 7 Ave. Suite 100 Anchorage, AK 99501 Re: Change of Well Name Storm Cat Horseshoe No. 1 to Northern Dancer No. 1 Dear Ms. Miner and Mr. Davies: On September 5, 2005 an application was made for a C -Plan Exception on behalf of Storm Cat Energy Corporation for the Horseshoe No. 1 well. Please be advised that this well name has now been changed. The new well name is: Northern Dancer No. 1 Please change your records as necessary. If you want a revised application with the proper name, please advise. Thank you for your assistance. Sincerely, Men Ehm Geological Consultant Cc.: Mr. Keith Knapstad, Vice President, Storm Cat Energy Mr. George Pollock, Michael Baker, Jr.. Ms. Cord Feige, The Castle Mountain Group, Inc. 1 0 i k F y L.,. a3 r i 1 Li'-' 'L.,\ 1 Li J FRANK H. MURKOWSKI, GOVERNOR ALASKA OIL AND GAS 333 W. 7T" AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 Keith Knapstad FAX (907) 276 -7542 V.P. Operations USA Storm Cat Energy Corporation 1125 17th Street, Suite 2310 Denver, CO 80202 Re: Northern Dancer 1 Storm Cat Energy Corporation G� Permit No: 206 -004 1.15;' 24 Surface Location: FSL, -&e4' FWL, S 1 T 17N R4W SM Bottomhole Location: 2160' FSL, 2504' FWL, S 1 T 17N R4W SM Dear Mr. Knapstad: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Northern Dancer #1 until after Storm Cat Energy Corporation has designed and implemented a water well testing program to provide baseline data on water quality and quantity. Storm Cat Energy Corporation must contact the Commission to obtain advance approval of such water well testing program. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, 0 P aniel T. Seamount Jr. Commissioner DATED thi day of January, 2006 cc: Department of Fish Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA -�i�� ALA. OIL AND GAS CONSERVATION COM11)1l,ION ,JAN 1 1 PERMIT TO DRILL 2006 20 AAC 25.005 Alaska Oil Gas Con C la. Type of Work: Drill p Redrill 1b. Current Well Class: Exploratory p Development Oil ,aCthh Zone Re -entry Stratigraphic Test Service Development Gas Singe Zone 2. Operator Name: 5. Bond: Blanket Single Well p 11. Well Name and Number: Storm Cat Energy Corporation Bond No. In Process Northern Dancer #1 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 1125 17th Street, Suite 2310 Denver, CO 80202 MD: 7600' TVD: 7600' 4a. Location of Well (Governmental Section): 1 7. Property Designation: Surface: 2466 FSL and -250 FWL�� T 17N R4W SM MHT 9300054 Top of Productive Horizon: 11- 8. Land Use Permit: 13. Approximate Spud Date: 2160' FSL and 2504' FWL, S 1 T 17N R4W SM Not Applicable 1/26/2006 Total Depth: 9. Acres in Property: 14. Distance to Nearest 2160' FSL and 2504' FWL, S 1 T 17N R4W SM 5970 Property: 2160' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x- 514405.962 y- 2773699.13 Zone- 4 (Height above GL): 20.5 feet Within Pool: 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 035) Maximum Hole Angle: degrees Downhole: 4449#' SZIr- 144- Surface: 79#7' 18. Casing Program: Setting Depth Quantity of Cement Size Specifications Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 16" 13 3/8" 68# L -80 230' 0 0 230' 230' Driven 12 1/4" 9 5/8" 40# L -80 925' 0 0 925' 925' Cmt to surface with 71 bbls. 8 1/2" 5 1/2" 17# L -80 7600' 0 0 7600' '7600' Cmt to surface with 135 bbl lead and 60 bbl tail set DV tool and pump 2 stage of 240 bbls 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee p BOP Sketch p Drilling Program CI Time v. Depth Plot Shallow Hazard Analysis SI Property Plat Diverter Sketch p Seabed Report Drilling Fluid Program p 20 AAC 25.050 requirements p 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Keith J. Knapstad Title V.P. Operations USA Signature Phone Date Commission Use Only Permit to Drill C f API Nu Permit Approval See cover letter for other I Number: C 7 50- C 2J z 1 Date: I -'019 requirements. Conditions of approval Samples required Yes X No Mud log required Yes >4 No p Hydrogen sulfide measures Yes No ;RI survey required Yes No Other: T 0 I C o 0 1,4 u 9 APPROVED /2S Approved y: THE COMMISSION ION Date: Form 10 -401 Revised 06/2004 i I N1 A f Submit inDuplicate 0 January 11, 2006 Mr. John Norman, Chair Alaska Oil Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, AK. 99501 RE: Application for Permit to Drill: Northern Dancer #1 Dear Mr. Norman, Storm Cat Energy hereby applies for a Permit to Drill an exploration well in Section 1 of T 17N, R4W, SM of the Matanuska Susitna Borough. Accompanying this Permit to Drill submission are the Surety Bond (Form 10 -402A) and Designation of Operator (Form 10 -411). Please note that this well is named Northern Dancer #1, previous dialogue has referred to the former name Horseshoe #1. The anticipated spud date for the Northern Dancer #1 is January 26, 2006. This well will be drilled as a straight hole using casing drilling techniques. The conductor casing will be driven to +230', then a 121/4" hole will be rotary drilled to +925' where 9 -5/8" casing will be set and cemented to surface. A 8 -1/2" hole will then be drilled to +7,600' and the 5 'h "casing will be set and cemented from TD to surface and 2 7/8" tubing will be installed if there is to be any completion attempt on this well. Please find the attached information as required by 20 ACC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10 -401 Application for Permit to Drill as per 20 AAC 25.005 (a). 2) Fee of $100.00 payable to the State of Alaska per 20 AAC 25.005 (c) (1). 3) A location plat showing the well's proposed surface and bottomhole locations as per 20 AAC 25.050 (c) (2). 4) Diagram and description of the BOP equipment (diverter, BOP and choke manifold) to be used are submitted as required by 20 AAC 25.035 (a) (1) and (b). 5) A complete proposed Casing Program is attached as per 20 ACC 25.030. 6) The Drilling Fluid Program as per 20 AAC 25.033. 7) A Summary of Drilling Hazards is attached. 8) A Well Site Survey is attached as per 20 AAC 25.061. If you have any questions or require additional information, please contact me at 303 991 -5070. Sincerely, Storm Cat Energy Corporation f --r Keith Knapstad enclosures Da �cez Stoov't Cates °�he� Drillingpz °gram General Well and Rig Data AFE No. AK 05001 AOGCC No. N/A Prospect Name Northern Dancer #1 Well Location SE /4 of Section 1, T17N, R4W, SM Proposed Well Intent Natural Gas Target in Tyonek Bell Island SS. Operator Storm Cat Energy Corporation Company Supervising Operations Baker Energy Expected Duration of Operations 24 to 26 days with 10 to 14 of Drilling Rig Name Kuukpik Rig #5 Drilling Method Drill Pipe Type of well Vertical (gas) KB 20.5' GL N/A Target Depths Charged Sands from 1000' to 5000' Tyonek, the Tyonek D sand, and Bell Island SS at 7600'. Proposed TD Depth 7600' Temperature BHST: 120 F (estimate) Hydrogen Sulfide Potential None anticipated Casing Summary Hole Section: Conductor Surface Production Casing Size 13 3/8" 9 5/8" 5 1 /2" Weight 68# L -80 40# HCP -110 17# L -80 Collapse 5020# 3,090# 5,750# Burst 2260# 5750# 7740# Tensile Strength 916,000 397,000 Connection BTC BTC BTC Conductor Hole Driven or Drill 16" hole to 230'. Objective To drill or drive the 13 3/8" casing to 230' with as little deviation as possible. Cement to surface if casing isn't driven to depth. Hazards Shallow gas (None anticipated) Shallow water flows (None anticipated) Lost Circulation (Possible in Glacial Drift) Pre Drilling Activities If conductor pipe is driven none. If conductor pipe is drilled down we need to make sure the water well on location is available and the rig tanks are filled for the 16" hole. Use Gel /Gelex spud mud. Ensure an adequate supply of additional mud products and loss circulation material is stockpiled on location, in the event it may be required. 12 Surface Hole (230' to 950') Objective To Drill a 12 1 /4" hole from the base of the conductor to 950'. Successfully cement the surface casing with returns to surface. Hazards Shallow Gas (None anticipated). Shallow Water Flows (None anticipated). Lost Circulation (Possible in sand and gravel beds). Pre Drilling Activities Fill rig tanks with water. Water will come from water well on drill site. Use the same system of Gel /Gelex spud mud. Ensure an adequate supply of additional mud products and loss circulation material is stockpiled on location, in the event it may be required. Fluid System See attachment Drilling Activities PU and make up 12 1 /4" BHA as follows: 1- 12 1 /4" Tri Cone Bit 1- Bit sub 1- Bit Stabilizer 1- 8" Drill Collar 6- 6" Drill collars Drill 12 hole to 965' (10' rathole for cuttings) survey every 200'. Strap in hole the BHA and drill pipe. Circulate the hole clean (30 minutes min.) Surface Casing: Ensure 9 5/8 LTC x 3 1 /2" circulating swedge is on drill floor. Check float shoe for float operation and check auto fill collar is in place. Ensure float shoe is thread locked on the casing joint. Use API Modified thread compound. Auto fill float should allow casing to fill with fluid. Centralizers to be installed 3 on bottom joint with casing shoe and 1 every other joint. Set casing in tension. Ensure fluid returns are clean prior to cementing. Record setting depth on morning report. 1 Surface Cement Program Ensure samples of mix water and dry blend cement are obtained prior to mixing cement slurry. Ensure sample mix water is forwarded to cementing company prior to cementing for compatibility. Forward sample of mix water to cement company for laboratory testing of long string blends. Reciprocate casing while pumping cement. Chain down casing prior to pumping displacement. Wait minimum of 8 hours bumping the plug before backing off /cutting off landing joint. Set collar or cut off at least 1' above ground level if Kuukpik 13 3/8" BOP allows. Pressure test surface casing to 75% of collapse of 2320 Full detail of the casing and cementing job must be reported on the next day's Morning Report and the Rig Tower /Tour Sheets. Complete a rig inspection and conduct a blowout prevention drill. Note: Ensure the following policies are adhered to and recorded in the tower book: BOP drill to be conducted by each crew prior to drill out and at least every 7 days thereafter. Rig inspection reports are to be signed by Tool usher and Supervisor. g P P g Y P P Daily rig walk around to be completed by Toolpusher and Supervisor. 8 Main Hole (950'- 7600') Objective To drill the 8 1 /2" main hole section with as little deviation as possible remain in AOGCC specs. Gather sample and log information in order to correlate actual formations against predictions. Successfully cement the production casing with cement returns to surface.,' Hazards Lost Circulation Intermittent can be expected from 1000' to TD especially from 4400'- 4420'. The well bore 960' from the new location had lost total returns at 4400' in the interbedded sands and coals. Differential Sticking Ensure pipe is not left static for any length of time. Also, ensure pipe is moving prior to starting pump. Ensure that with the intermittent circulation and poor returns that enough time is allowed between connections to keep the cuttings moving up hole and not piling up on the BHA. Tight Hole There will be tight spots while drilling through the interbedded coals, clays, and sands due to unconsildation of coals, sands, and swelling of the clays /coals. PDC bit should help these problems but recommend on every connection to ream hole the length of the Kelly once the Kelly is down to the floor and allowing for some circulation time on bottom to ensure cuttings are not piling up around the BHA. 1 Overpressure No evidence of over pressure zones were noted on the well 960' away from drilisite and we don't expect to see any here but always note on the tower sheets water levels in pits and tanks for well flows and lost circulation events. Pre Drilling Activities Fill rig tanks with water. Water will come form the water well on the drilling site. We will use a fresh water Polymer mud system. Try and keep the mud as clean and light as possible while drilling through the coals to TD. Drilling Activities PU and make up 8 1 /2" BHA as follows: 1 -8 1/2" PDC bit 1- 8 1/4" x 8 1 /2" Near Bit Stabilizer box x box 1- 6 3/4" Float sub 1- 6 3 /4" Drill Collar 1 -8 1 /2" String Stabilizer 1 -6 1 /4" Survey Tool 2- 6 3 /4" Drill Collars 1- joint of HWDP 1- 6 1/2" Drilling Jar 6- 6 3 /4" Drill Collars Cross Over 14- joints of HWDP 8 1/2" Ghost Reamer 15 Joints HWDP DP to surface Drill 8 1 /2" Hole to 7610' and survey every 500'. Strap in hole. Keep drill rpms around 100. Circulate the hole clean. TOOH with drill string. Logging requirements: PE: Compensated Neutron Litho Density (PEF) with Caliper and Gamma Ray. PE: Array Induction -SP -Gamma Ray Caliper. FMI Borehole Compensated Sonic -Gamma Ray Caliper Production Casing: Ensure 5 1 /2" LTC x 3 Y2 circulating swedge is on the drill floor. Check float shoe for float and auto fill operation. Ensure casing shoe and first joint are thread- locked. Use API Modified thread compound. Centralizers to be installed as follows 3 on first joint, and 1 every three joints to DV tool at 4200'. Place centralizers on the joint collar below and above the DV Tool. Then 1 centralizer every 3 joints to surface. Set casing in full tension. Ensure fluid returns are clean prior to cementing. Record setting depth on morning report. Production Cement Program Ensure samples of mix water and dry blend cement are obtained prior to mixing cement slurry. Ensure sample mix water is forwarded to cementing company prior to cementing for compatibility. Reciprocate casing while pumping the 1 stage cement job. Chain down casing after 1s stage cement job. Full details of casing and cementing job must be reported on the next day's Morning Report and the rig's Tour Sheet. Send sample of cementing mix water with cementers for laboratory testing of long string blends. Ensure lease is totally clean of all debris after the rig has moved off. Environmental Requirements Ensure Toolpusher has adequately educated all rig personnel with the policies and procedures outlined in project Compliance Manual. All Material Safety Data Sheets (MSDS) are to be stored in the doghouse. Ensure all related mud products are labeled. Field Tickets and Rig Tour Sheets All field tickets must be approved and signed in the field. Ensure the AFE number and accounting code is on each invoice. If there is a discrepancy, note so on the ticket and contact the Baker Anchorage Office. Send two copies of the rig tour /tower sheets as soon as possible after rig release. Material Transfer Sheets The form is to be used for the transfer of tubular and wellhead equipment only. List all serial numbers and give a good description of the equipment. PROPOSED PAD 9 eP' NOTE: ALASKA MENTAL HEALTH TRUST LAND SECTION 1, T17N, R4W, SEWARD MERIDIAN w g s r. PROPOSED Inc. ■1L_ ichael Baker Jr., LOCATION r aker A i01t o Michael Baker Co nc. ian 1400 West Benson Blvd., Suite 200 NORTHERN DANCER #1 Done 273 99503 PROJECT S ENERGY CORPORATION S T O KM C A T Fox: (907) 273 -1699 12/20/05 ENERGY CORPORATION FIGURE 1 1° =300 (SHEET 1 OF 1) December 21, 2005 Mr. Bob Blankenburg Oil and Gas Coordinator Solid Waste Program Alaska Department of Environmental Conservation 555 Cordova Street Anchorage, Alaska 99501 Re: Northern Dancer #1 Temporary Waste Storage Plan Dear Mr. Blankenburg: On behalf of Storm Cat Energy Corporation, I am pleased to submit the attached Temporary Waste Storage Plan for the Northern Dancer #1 conventional natural gas exploration well. The well will be located on Alaska Mental Health Trust oil and gas lease areas near Big Lake, Alaska. This Plan has been developed in accordance with 18 AAC 60.430. Drilling Waste. Operations are expected to begin in January 2006 with the well drilled to a depth of 7,600 feet. Drill cuttings generated will be stored on -site in a gravel bermed earthen pit underlain with an impermeable membrane liner and will be removed from the property with one year of drilling completion. Please note the name for this well, Northern Dancer #1, has changed since our last correspondence. Feel free to contact me if you require any further information. Regards, George Pollock Construction/Operations Manager Baker Energy enclosure STORM CAT ENERGY CORPORATION TEMPORARY WASTE STORAGE PLAN NORTHERN DANCER #1 December 21, 2005 Introduction Storm Cat Energy Corporation plans to drill a single conventional natural gas well within Alaska Mental Health Trust (MHT) oil and gas lease areas located north northwest of Big Lake, Alaska during the winter of 2005/2006. The locations of the proposed well, proposed pad and all pertinent elements of present infrastructure are shown on Figure 1. Access to the proposed project location will be by existing permanent roads and improvements to existing primitive trails within MHT lands. Operations are expected to begin in early January 2006 with the construction of the gravel road and drill pad. This well will be drilled to a depth of 7,600 feet or less and is expected to take between 10 to 14 days. It is anticipated that operations will cease on this well by mid February that the rig will be moved offsite. II. Location of Project Area This project well will be placed within MHT land (MHT lease #9300054). III. Well Site Location and Access This well site is staked, although not presently surveyed. The location is as follows: Section 1, T17N, R4W Seward Meridian IV. Solid Waste Disposal Solid wastes will be collected at the drill site for disposal at a later date. Drill cuttings generated during placement of the well will be temporarily stored in a gravel bermed earthen pit underlain with an impermeable liner located adjacent to the pad as shown in Figure 2. Specifications for the liner are presented in Figure 3. The cuttings will be initially collected in steel bins directly from the shale shakers and centrifuge discharge points. These cuttings will be transferred via Supersucker immediately to the lined pit for containment throughout the drilling process. As a result, the cuttings will never be in contact with the ground surface. The cuttings will be permanently removed from the well site and disposed of in an approved manner at the Matanuska Susitna Borough Landfill within nine months of issuance of the permit. Trash will be collected and disposed of at an approved facility. All solid waste disposal will be in accordance with methods approved by the Matanuska Susitna Borough, the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. V. Liquid Waste Disposal Drilling fluid will consist of a freshwater mud that contains fewer additives than other muds. Mud that is spent will be removed from the well site and disposed of in an approved manner. All spent mud will be retained in metal containers while at the project site. It is possible that an application will be submitted for annular injection in the upper part of this well. All liquid waste disposal will be in accordance with methods approved by the Matanuska Susitna Borough, the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. VI. Other Waste Disposal Most of the human wastes will be processed at the portable office and operations center. Wastewater from this facility will be held in a holding tank and taken to a proper disposal facility. Alternatively, portable "Rent -a -can" type facilities will be in place and maintained at the rig site. The crew will be housed in local motel accommodations during drilling activities. VII. Responsible Parties The names and telephone numbers of the supervisory personnel throughout the drilling operation are as follows: Mr. Scott Zimmerman (303) 991 -5070 Office President, Storm Cat Energy Corporation Mr. Keith Knapstad (303) 991 -5070 Office Vice President, Storm Cat Energy Corporation Mr. George Pollock (907) 351 -8286 Ce11 Construction /Operations Manager December 21, 2005 (Name) (Date) Keith Knapstad Vice President Storm Cat Energy Corporation St_ J 0 FRANK H. MURKOWSK/, GOVERNOR 555 Cordova Street Anchorage, Alaska 99501 DEPT. OF ENVIRONMENTAL CONSERVATION PHONE: (907) 269 -7690 DIVISION OF ENVIRONMENTAL HEALTH FAX: (907) 269 -7600 SOLID WASTE PROGRAM bob blankenburg@dec.state.ak.us January 6, 2006 Mr. Keith Knapstad Certified Mail Vice President 7003 2260 0004 1149 2937 Storm Cat Energy Corporation Return Receipt Requested 1400 16 Street, Suite 510 Denver, CO 80202 Subject: Plan Approval for Temporary Storage of Drilling Waste for Storm Cat Energy Corporation's Northern Dancer #1 Natural Gas Exploration Well Dear Mr. Knapstad: We have reviewed and hereby approve the Storm Cat plan dated December 21, 2005 for the temporary storage of drilling waste for the Northern Dancer #1 conventional natural gas exploration well. The project will be Located on an Alaska Mental Health Trust oil and gas lease near Big Lake, Alaska. The storage consists of temporary storage of drilling waste in a geosynthetically -lined gravel -bermed earthen pit. Final disposal of cuttings will be by land disposal at the Matanuska- Susitna Borough Central Landfill in Palmer, Alaska. All drilling waste and the temporary storage facility shall be removed from the site within one year of completing drilling operations. Please report any release of drilling waste to the land or water to the Solid Waste Program. In order for us to track the opening and closure of waste storage facilities, we need to know when storage begins. Please provide written notice (email is fine) when the use of the approved storage facility begins at each of these sites. We request that this notice be presented within 7 days after storage begins. In addition, please be advised, that if after one year from the date of this approval, we have not received notice that storage has begun, the approval is withdrawn and we will close the file. You will be required to reapply for temporary storage approval in the event storage is still required at the site. Please note, in order to ensure that all drilling waste has been removed from the site, the Department requires that you include photographs as part of the closure notification for the temporary storage facility. The photographs must show the storage facility while it is operational and after it has been removed. Upon the removal of drilling waste from the storage area, please: 1. Conduct a visual site inspection to confirm the removal of all drilling waste from the site; and 2. Notify the Department in writing within 7 days to document the final site inspection, and provide information regarding the volume of drilling wastes stored and their final disposal locations. Also, provide photographs that show the storage facilities while they were operational and after they have been removed. Contact me at (907) 269 -7690 with any comments or notices regarding this matter. Sincerely, Robert J. lankenburg Oil and Gas Coordinator Solid Waste Program Cc: Greg Goodale, Matanuska- Susitna Borough George Pollock, Project Manager, Baker Energy 4 fi z: 1 1 I 1 l• r I 1 1 1 Fr i n I I II 1 1 II 1' 1 z II .1, 1 I I 1 t,, A i'l 1.1 4 11 Elici 1 tilil i IRA Ee'' I I I 4,1 t..4."‘-.1 ilk' VII ;.1ii i itlr 1 1 w 1 11 i lt`1111 111 1 5 1 Ell i' 11'.' il 1-- A ilit Ili 2 gi 1 1 1/14 IR 1 ,41t. i11 t ..e, 1 i!, 1 t 14!z rg'1! II 'i I V"' ire z 11 11 0 ..x N h Z11. 1 1 1 .1 1-1-j 1-- €4 CI 'II 11 U) q L.,.. 1 11 1 iii!i, 1,11111 ll'Eq,_-:_i 1 a 4 .E.g1 lilg t. P 2- '1 ill'o• I 21 i 1 4 r.# '.P.•• 1 till b •,0 '.'.:q.7',..,.:zi't t z g Q ;41,.., 6 'F 1:• 1 I i 1 I '.1‹ _J E`., k.1 1 1 :l 2 4 Niq 4 1 1 I I '1 1 F; i .7, --II IE 2 a at ti z 1 I 4 c73 :z a, .-1 .N. 1 ..-,Z.,...,,,,,,,,,,,,,■.7 4a•.: I. 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Open Close F1 16" Diverter Line LJ 21 1/4" Diverter Spool 16" Hydraulic Operated Knife Valve 2" Drain Outlet 0 Kuukpik Dolling Rig 5 Diverter System with 13 5/8" Annular Date: 1/18/05 Drawn By L Ross I 13 5/8" Annular 13 5/8" Double Gate J 13 5'8" Mud Cross r 13 5/8" Single Gate Kuuk �k Drillin Rig 5 13 5/ 5,000 PSI BOP Stack Drawn By: L Ross Date: 8/T3/04 2" 3" To Shaker 3" Panic To Gasbuster 3 1/8" 2 1/16" O 21 16" I I I I+ 2 1/16.",, 2 1/16" to N 3 1/8" 7_t CN 2 1/16" .21/16" Manual Choke Automatic Choke 2 1/16" Inlet Pressure Sensor 3" i 3" 5,000 PSI Choke Manifold Kuukpik Drilling Rig 5 RED 3 1/18" 5,000 PSI VALVES AND LINES BLUE 2 1/16" 5,000 PSI VALVES Kuukpik Drilling Rig 5 Choke Manifold Drawn By: L Ross Date: 8/1/04 3" Mud Line from Mud Pumps to Rig Floor 1 i 2" 5,000 psi threaded valve f-- 2" 5,000 psi flanged hose Kiil Line Side cu 2 2 1/16" 5,000 psi rated manual valve ic g 2 1/16" 5,000 psi rated manual valve l 0 Drilling Spool 2 3 1/18" 5,000 psi Manual Valve Li 3 1/18" 5,000 psi Hydraulic Operated Valve Choke Line Side 3" Flanged Choke Hose I 7 To Choke Manifold inlet Kuukpik Drilling Rig 5 Choke and Kill Line Layout July, 2003 Drawn By L Ross 192 000 2 J —.I .2 i Diverter line Layout From Rig Land Ex9,0,acan No 2991101m Damn By. L Ron. Data. 5/12/04 Northern Dancer #1 Casing Properties and Design Verification Casing Performance Properties Internal Collapse Tensile Strength Size Weight Yield Resistance Joint Body TVD MD Design Safety Factor* (in.) (lb /ft) Grade Cnxn (psi) (psi) (1,000 lbs) (ft RKB) (ft RKB) T B C 9 -5/8 40 L -80 BTC 5,750 3,090 979 916 925 925 29.22 12.41 6.67 5 -1/2 17 L -80 BTC 7,740 6,290 446 397 7,600 7,600 3.52 2.03 1.66 Tensile design safety factors are calculated using pipe weight less buoyancy. Burst design safety factors are calculated using MASP. Collapse design safety factors use formation pressure at the shoe on the outside and full evacuation (except for a gas gradient) inside. Casing Setting Depth Rationale 9 -5/8" 925' MD, TVD Surface casing to provide an anchor for BOPE, sufficient formation strength at the shoe for containing 11 w formations, allowing deeper drilling to deeper formation pressures and to cover s a o g P p g P g the producing interval. 5 -1/2" 7,600' MD, TVD Production casing to provide hole stability for production operations. Mud Program Subject: Mud Program From: Chris Hogle <CHogle @mbakercorp.com> Date: Thu, 19 Jan 2006 12:14:07 -0500 To: winton_aubert@admin.state.ak.us, George Pollock <GPollock. POALASKA.alaska mbakercorp.com> CC: Dennis Higgins <DHIGGINS.POALASKA.alaska @mbakercorp.com> Mr.Aubert, We are going keep out mud weight down as low as possible and keep the fluid as clean as possible. I believe the reasons the mud weight got so heavy on the State HorseLake well was because of poor management of the mud system as it was noted there were no flows or over pressured formations in this well bore. You can also see the dirty mud system caused some of the drill bits to fail cutting 100' of hole and the drilling penetration rates to fall dramatically. I am trying to keep the fluids as clean as possible so we don't go through 20 drill bits and the associated bit trips. It's very important to manage the mud system and if we see indications of salt water influxes or lost circulation then of course we would weight up or add LCM to the mud system to control the downhole conditions. These products will also be on site and readily available. Thanks, Chris Hogle Production Manager J.M. Huber Baker Energy 307 673 -8800 ext 205 307 752 -4104 1 of 1 1/19/2006 8:22 AM Michael Baker Corporation W ell Name: Big Lake Exploration Location: Big Lake, Alaska INT EG RA TED ENGINEERING PROJECT PLAN 1 ONM rm co Prepared For: Michael Baker Corporation Well Big Lake Exploration Big Lake, Alaska Prepared by: Tony Tykalsky Reviewed by: Dallas Rhodes Presented to: Chris Hogle November 7, 2005 r= S erE Michael Baker Corporation W ell Name: Big Lake Exploration Location: Big Lake, Alaska Michael Baker Corporation ATTN: Chris Hogle Chris: Enclosed is the recommended drilling fluid program for the Big Lake Exploration Well to be drilled later this year. Overview: This is exploration well in the Big Lake area of the Mat -Su Borough. Plans are to drill this well in the winter of 2005. Preliminary plans include drilling a 16" hole to 230' and run and cement 13 -3/8" conductor. A 12 -1/4" hole would be drilled to 925' with 9 -5/8" casing cemented. The exploration interval would be a 8 -1/2" hole drilled to 7600'. A 5 -1/2" liner would be cemented in place prior to formation testing. Permitting may allow for annular injection of drilled cutting and drilling fluid after the well is complete. Conductor: (0 230") Gel /Gelex spud mud is recommended for this interval. 12 -1/4" Interval: (0 -925') The Gel /Gelex spud mud used for the conduction can be used for this interval with minor treatment for cement contamination. This fluid should be conditioned prior to running 9 -5/8" casing. Exploration Interval: (925 7600') We would recommend drilling this interval with a fresh water polymer mud system. The surface fluid should be used to drillout the cement shoe and Acid soluable calcium carbonate can be used both for a bridging agent and for increasing the mud weight should conditions require it. Exploration Interval: (925 7600') (Option 2) If reducing the amount of fluids for disposal is the main concern, the surface mud can be treated and reused for this interval. Both fluid volumes and costs would be lower, however, ROP might be reduced due the higher concentration of solids incorporated initially. Testing: Without further details, we would assume and testing would be done with either water or brine. We would recommend a 3 6% KC1 brine if the exploration interval is cased and tested. This is the typical brine used in Alaska for most completions and formation testing. Tony Tykalsky Project Engineer /M -I SWACO Reference Wells: Ocean Energy Pioneer Wells rim erE I, o Michael Baker Corporation Well Name: Big Lake Exploration Location: Big Lake, Alaska Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Interval (ft) Fluid cost per foot Volume Usage Estimated Disposal Volume 0 230' $6.93 ft 313 bbls <21 bbls 230 925' $1.00 ft 129 bbls <434 bbls 925 7600' $8.58 ft <1773 bbls <3748 bbls 925 7600 $3.52 <1405 bbls <2811 Option 2 Total Project Avg. Max. Max. Targets for $7.83 ft 2215 bbls 4215 bbls Drilling Interval* Based on original proposal. NOTE: Disposal cost are estimated to be between $80 and $100 per barrel. This would include mobilization, disposal de- mobilization to job site. These estimated are based on summer time operation and annular injection at the well site. Col 0 i 1 IIIII■ Michael Baker Corporation IFE Well Name: Big Lake Exploration Location: Big Lake, 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) Products Engineering 13 -3/8" 16" 230' 230' Gel /Gelex Spud Mud 8.6 2 $3,095 4 9.0 J. 9 -5/8" 12 -1/4" 1 925' 925' Gel /Gelex Spud Mud 9.0 9.4 4 $3,658 5 -1/2" 8 -1/2" 7600' 7600' Polymer 9.0 9.4 6 $61,741 5 -1/2" 8 -1/2" (Option 2) ($27,492) Gel /LSND Testing 5 -1/2" 7600' 7600' KC1 Brine 8.55 2 $4,387 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. Testing includes 250 barrels 3% KC1 brine. rri Arb IFE Mj 0 0 IFE Michael Baker Corporation Well Name: Big Lake Exploration Location: Big Lake, Alaska Product Usage Summary M -I Bar 0 0 355 0 355 M -I Gel 125 55 0 0 180 Gelex 4 6 0 0 10 Soda Ash 2 1 9 0 12 Caustic Soda 2 1 18 0 21 Bicarb 0 0 9 0 9 Duovis 0 0 142 0 142 Desco CF 3 2 0 0 5 Polypac UL 0 1 71 0 72 KC1 0 0 0 42 42 SafeCarb 0 0 177 0 177 Defoam X 0 0 10 0 10 Engineer 2 4 6 2 14 Service rri ON% Mij o Michael Baker Corporation Well Name: Big Lake Exploration Location: Big Lake, 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. FLUID LOSS CONTROL In the exploration interval, the API fluid loss should 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 LSRV When drilling with a polymer fluid, the low shear rate rheology should be maintained at approximately 30,000 cps. In addition to adequate additions of Duovis, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS MBT The MBT should be kept at less than 7.5 ppb in the exploration interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS Whenever possible all treatments to the mud system should be made as pre -mix additions. LOST CIRCULATION Maintain adequate supply of lost circulation material on location in the event whole mud losses to the formation occur. e 'FE Michael Baker Corporation W ell Name: Big Lake Exploration Location: Big Lake, Alaska Interval Summary 16" hole 0 230' Drilling Fluid System Gel /Gelex Spud Mud Key Products MI Gel Gelex Soda Ash Caustic Soda MI Bar PolyPac Supreme UL Solids Control Shale Shakers Desander Desilter Recommended shaker screens —150 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, hole cleaning hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec. /qt) (lb. /100ft (mU3Omin) 0 230' 8.6 9.0 60 100 25 35 NC 9.5 10% A Treat drill water with Soda Ash to reduce hardness. A Build spud mud with 20 25 PPB M -I Gel to 100 seconds /quart funnel viscosity. A Lower funnel viscosity to 75 after any expected gravel zones have been drilled. A Add Gelex as needed to maintain sufficient viscosity for hole cleaning. A Increase funnel viscosity if fill on connections begins to occur. A Condition mud prior to cementing casing to reduce yield point and gel strengths. A Estimated volume usage for interval 313 barrels. A Estimated disposal volume 21 barrels. 0 Michael Baker Corporation II !E Well Name: Big Lake Exploration Location: Big Lake, Alaska Interval Summary 12-1/4" hole 230 925' Drilling Fluid System L.S.N.D. Fluid Key Products MI Gel MI Bar Caustic Soda Polypac Supreme UL /Asphasol Supreme Solids Control Shale Shakers Desander Desilter Centrifuge Recommended shaker screens 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up Interval Drilling Fluid Properties Depth Mud Plastic Yield API Drill Interval Weight Viscosity Point Fluid Loss MBT Solids (ft) (PPM (cp•) (m1/30min) 230 -925' 9.0 -9.4 8 -12 12 -16 10 -12 <10.0 -7.5% Use spud mud to drill out surface casing. Pre -treat fluid with bicarb to minimize cement contamination. Condition mud with Gel and Polypac as needed to bring specs into line. A If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. A If bit balling becomes a problem pump a slug with 1 drum of drilling detergent around the BHA. A Be prepared for losses of whole mud to formation fractures. A Estimated volume usage for interval —129 barrels new mud. A Estimated disposal volume 438 barrels. Condition mud prior to running 9 -5/8" casing. fri Michael Baker Corporation IFE Well Name: Big Lake Exploration Location: Big Lake, Alaska Interval Summary 8 -1/2" hole 925 7600' Drilling Fluid System Polymer Fluid Key Products Duovis Polypac UL SafeCarb F MI Bar Caustic Soda Asphasol Supreme Solids Control Shale Shakers Desilter Centrifuge Recommended shaker screens 210 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (PPM (cp.) (cps) (ml/3Omin) 925 7600' 9.0 9.4 10 —14 30,000+ 6 8 7.5 5% Drill out 9 -5/8" casing and 10 20 feet on new hole with the spud mud. Build new Polymer fluid in the pit system and displace out the gel /gelex fluid. If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. Be prepared for whole mud losses to the formation. Estimated fluid volume for interval —1773 barrels. Estimated haul off volume 3478 barrels. Condition mud prior to running 5 -1/2" liner. r IFE rZli o WE Michael Baker Corporation W ell Name: Big Lake Exploration Location: Big Lake, Alaska HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. rzi eFE rm 0 0 Michael Baker Corporation 'FE Well Name: Big Lake Exploration Location: Big Lake, Alaska Product Health and Safety Reference HMIS HAZARD RATINGS Will Product Function Health Flammability Reactivity PPE M -I BAR Weighting Agent *1 0 0 E M -I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL -FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E DUOVIS Viscosifyer 1 1 0 E Safe -Carb F,M,C Bridging and weighting *1 0 0 E agent Nut Plug Loss Circulation Material *1 1 0 E M -I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SPERSENE CF Dispersant 1 1 0 E TANNATHIN Dispersant 1 1 0 E POTASSIUM Shale Inhibitor 1 0 0 E CHLORIDE r IFE r:=, 1 4016\ IFE Michael Baker Corporation Well Name: Big Lake Exploration Location: Big Lake, Alaska Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE 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 Alkalinity control 1 0 0 E BICARBONATE CITRIC ACID pH Adjuster 1 0 0 E DEFOAM X Defoamer 1 1 0 J KLA -GARD Shale Control agent 0 1 0 J LUBE TEX Lubricant 1 1 0 J D -D CWT Detergent 2 1 0 J Condor 303A Corrosion Inhibitor 1 1 0 J Asphasol D Shale Inhibitor 1 1 0 J Soltex Shale Inhibitor 1 1 0 J ---ma IFE Michael Baker Corporation W ell Name: Big Lake Exploration Location: Big Lake, 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 /7. eFE Storm Cat Northern Dancer No. 1 Summary of Drilling Hazards Alaska Statutes require the operator to provide information on potential drilling hazards prior to the drilling of an oil or gas well. 20 AAC 25.005 (c) (4) (A) The maximum downhole pressure (MDP) that is expected to be encountered is 3,419 psi 7,600 feet measured depth. The MDP has been calculated as follows: 9.4 ppg max mud wt. 7,600 ft max drilled depth 0.052 conversion factor from ppg to psi /ft 311 C 13-1 4 MDP (9.4) (0.052) (7,600) si The maximum anticipated surface pressure (MASP) that is expected to be encountered is 2,879 psi 7,600 feet measured depth. The MASP has been calculated as follows: 9.4 ppg max mud wt. 7,600 ft max drilled depth 0.052 conversion factor from ppg to psi /ft 0.11 psi /ft methane gradient MASP [(9.4) (0.052) 0.11] (7,600) 2,879 psi During drilling operations and throughout all times that the hole is open, gas detection systems and pit volume instrumentation will be in place to detect gas kicks or loss of fluid in the well bore. (B) Potential gas zones can be expected to be present at any depth within the Tyonek Formation from 785'+ to the Bell Island Sandstone at 7,345' (C) Potential borehole problems; Geopressured strata have not been encountered in any of the many wells that have been drilled in this part of the Cook Inlet Basin. Lost circulation zones have not been encountered in any of the many wells that have been drilled in this part of the Cook Inlet Basin. Differential sticking is not anticipated but getting the drilling assembly stuck during or after drilling the many coals can be a problem. It is most likely that such sticking in the coals will occur while tripping the bit due to the caving of the coals. A top drive will be in use to diminish the possibility of similar sticking while making connections. IIII Although there is no anticipated risk from the presence of hydrogen sulfide gas while drilling this well, an H detector will be in place during drilling operations and throughout the time that the hole is open. Storm Cat Northern Dancer No. 1 Well Site Surveys Section 20AAC 25.061 (a) of the regulations, requires that near surface strata to a depth of 2,000 feet in the vicinity of an exploratory well must be evaluated seismically by common depth point refraction or reflection profile analysis, or by another method approved by the commission, to identify sources for potential shallow gas. Although this well is classified as an exploratory well, numerous wells have been drilled in the area within the past 45 years. There has been no occurrence of shallow gas above a depth of 2,000 feet in any of the wells. Nearby wells include the Great Plains Horseshoe Lake St. No. 1 dry hole in Sec. 1 -T17N -R4W. It is also within in the same section as the proposed well but is located 960 feet to the south southeast. Significant nearby wells are as given below: Operator Well Location Distance Great Plains Horseshoe Lake St. 1 Sec. 01 -T17N -R4W 0.2 mi SE Lovely Beaver Lakes St. 1 Sec. 32 -T18N -R3W 2.5 mi NE ARCO Big Lake BLT -01 Sec. 22 -T17N -R3W 4.5 mi SE Union Knik Arm 1 Sec. 02 -T16N -R4W 5.5 mi S None of these wells encountered shallow gas above 2,000 feet. Storm Cat owns two seismic lines in the general area of the proposed Northern Dancer No. 1. The closest line is oriented in a northwest- southeast direction and passes the proposed location at an approximate distance of 1.5 miles to the southwest of the proposed test. That line is not continuous as it lacks coverage across Horseshoe Lake. A copy of that line was submitted with the request for a C -Plan Exception. A fault was originally interpreted to be present in the area of the proposed Northern Dancer No. 1 possibly between the dry hole and this proposed test. It has since been concluded that the gap in the recorded data across the lake has influenced the attitudes of the displayed data immediately adjacent to the record gap and that a fault is not present. There is no evidence of the presence of shallow gas on this line The second line is similarly oriented and it passes the location at an approximate distance of 3.5 miles to the southwest of the proposed test. That line is continuous and shows no faulting or evidence of the presence of shallow gas on this line. Based on these two seismic lines, data from both nearby wells and data from wells in the general area, it is Storm Cat's conclusion that this well will not encounter accumulations of shallow gas above 2,000 feet of measured depth. STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COM ION DESIGNATION OF OPERATOR 20 AAC 25.020 1. Name and Address of Owner: Storm Cat Energy Corporation 1125 17th Street, Suite 2310 Denver, CO 80202 2. Notice is hereby given of a designation of operatorship for the oil and gas property described below: Legal description of property: Alaska Mental Health Trust Oil Gas Lease #9300054 Location of Well (Government Section): Surface: 2,160' FSL and 2,504' FWL, S 1 T 17N R4W SM Top of Productive Horizon: 2,160' FSL and 2,504' FWL, S 1 T 17N R4W SM Total Depth: 2,160' FSL and 2,504' FWL, S 1 T 17N R4W SM Location of Well (Alaska State Plane Coordinates) Surface X: 514405.962 Y: 2773699.138 Zone 4 Property Plat Attached: 3. Name and Address of Designated Operator: Mr. Keith Knapstad Storm Cat Energy Corporation 1125 17th Street, Suite 2310 Denver, CO 80202 4. Effective Date of Designation: 11- Jan -06 5. Acceptance of operatorship for the above described property within all attendant responsibilities and obligations is hereby acknowledged: Signature Date 1/10/2006 Printed Name Keith J. Knaostad Title V.P. Operations USA 6. The Owner hereby certifies that the foregoing is true and correct: Signature Date 1/10/2006 Printed Name Keith J. Knaostad Title V.P. Operations USA 7. Approved: Commissioner Date Approved: Commissioner Date Approved: Commissioner Date (Requires approval by two Commissioners) Form 10 -411 Rev.10 /2003 Submit in duplicate Alaska Division of Insurance http://www.commerce.state.ak.us/ins/apps/companysearch/InsCompanyList.cfm Division of Insurance Al as Division of Insurance Company rt Searc Your query returned 'I record(s). Click on the AKID# to display record details or on the Org Type link to see glossary information AKID# Company NAIC# Active? Domicile State Org Type Org Status or Country 898 RLI INSURANCE COMPANY 13056 YES IL PROP/CAS INS C OF A ISSUED New Query I Contact Infonnation 9th Floor State Office Bldg. 333 Willoughby Avenue 99801 PO Box 110805 Juneau, Alaska 99811-0805 Robert B. Atwood Building (907) 465-2515 Fax (907) 465-3422 550 W. 7th Avenue, Suite 1560 Anchorage, Alaska 99501-3567 TDD (907) 465-5437 Email: (907) 269-7900 Fax (907) 269-7910 insuranceAcommerce.state.ak.us TDD (907) 465-5437 Email: insuranceAcommerce.state.ak.us Consumers Producers Companies Webmaster 1 of 1 1/17/2006 2:23 PM Alaska Division of Insurance http://www.commerce.state.ak.us/ins/apps/companysearch/InsCompanyDetail.cfm?AKID-898 Division of Insurance Alaska Division of Insurance Company Search Company Details for: RU INSURANCE COMPANY AK ID#: 898 NAIC Number: 13056 Federal ID Number: 37-0915434 NAM Group Number: 783 Organization Type: PROP/CAS INS Organization Status: C OF A ISSUED Domicile State: IL Status Dates/Information: Date Issued: 05/14/1970 This Company was authorized on the following date(s) for these tine(s) of insurance: HEALTH 05/14/1970 PROPERTY 05/14/1970 CASUALTY 05/14/1970 BOILER/MACHINE 05/14/1970 BURGLARY/THEFT 05/14/1970 CREDIT 05/14/1970 ELEVATOR 05/14/1970 ENTERTAINMENT 05/14/1970 GLASS 05/14/1970 LEAKAGE/FIRE EXT 05/14/1970 LIABILITY 05/14/1970 LIVESTOCK 05/14/1970 MALPRACTICE 05/14/1970 1 of 2 1/17/2006 2:25 PM Alaska Division of Insurance http /www.commerce.state.ak.us/ ins apps companysearch /InsCompanyDetail.cfm ?AKID =898 MISC 05/14/1970 PERSONAL PROPERTY 05/14/1970 VEHICLE 05/14/1970 WORKERS COMP 05/14/1970 SURETY 05/14/1970 MORTGAGE 05/14/1970 MARINE 05/14/1970 WET MARINE TRANSPORTATION 05/14/1970 Click here to get contact and address information for this company. Click here for prior company name(s). As of June 24, 2005, the division no longer maintains active records of any appointments. Bad to :1st Screen E n'a New Query Contact infornitirn 9th Floor State Office Bldg. 333 Willoughby Avenue 99801 PO Box 110805 Juneau, Alaska 99811 -0805 Robert B. Atwood Building (907) 465 -2515 Fax (907) 465 -3422 550 W. 7th Avenue, Suite 1560 Anchorage, Alaska 99501 -3567 TDD (907) 465 -5437 Email: (907) 269 -7900 Fax (907) 269 -7910 insurance (ci?commerce.state.ak.us TDD (907) 465 -5437 Email: insurance of }commerce.state.ak.us Consumers Producers Companies Webmaster 2 of 2 1/17/2006 2:25 PM Alaska Division of Insurance http /www.commerce.state.ak.us ins apps companysearch /InsCompanyAddrs.cfm ?AKID =898 Division of Insurance as Division o Insurance Contact and address Information for I INSURANCE COMPANY General Correspondence: Attention: MARY BETH NEBEL 9025 NORTH LINDBERGH DRIVE PEORIA, IL 61615 -1431 Business Phone: (309)692 -1000 Toll Free Phone: (800)331 -4929 Fax Phone: (309)689 -2049 Email: MNEBEL @RLICORP.COM Consumer Contact: Attention: MARY BETH NEBEL 9025 NORTH LINDBERGH DRIVE PEORIA, IL 61615 -1431 Business Phone: (309)692 -1000 Toll Free Phone: (800)331 -4929 Fax Phone: (309)689 -2049 Email: MNEBEL @RLICORP.COM Service of Process: Attention: MARY BETH NEBEL 9025 NORTH LINDBERGH DRIVE PEORIA, IL 61615 1 of 2 1/17/2006 2:25 PM Alaska Division of Insurance http /www.commerce.state.ak.us/ ins apps/ companysearch /InsCompanyAddrs.cfn ?AKID =898 Business Phone: (309)692 -1000 Toll Free Phone: (800)331 -4929 Fax Phone: (309)692 -1068 Email: marybeth_nebel @rlicorp.com Book to Detail Screen Nev! Query Contact Infort 9th Floor State Office Bldg. 333 Willoughby Avenue 99801 PO Box 110805 Juneau, Alaska 99811 -0805 Robert B. Atwood Building (907) 465 -2515 Fax (907) 465 -3422 550 W. 7th Avenue, Suite 1560 Anchorage, Alaska 99501 -3567 TDD (907) 465 -5437 Email: (907) 269 -7900 Fax (907) 269 -7910 insurance aacommerce.state.ak.us TDD (907) 465 -5437 Email insurancecommerce.state.ak.us Consumers Producers Companies Webmaster S 2 of 2 1/17/2006 2:25 PM JAN -17 -2006 TUE 04:19 PH eST LAND OFFICE FAX NO, 1 269 8905 P. 01 TheTRUST 718 "L" Street, Suite 202 LAND Anchorage, AK 99501 Phone: (907) 269.5$ O FFICE FAX: (907) 269 -8 �'ts) Fax Transmittal Sheet Deliver to: 0,14441414 1 A From: Fax Number: 7 Date: l i No. of pages: d (including cover sheet) URGENT FOR REVIEW PLEASE COMMENT PLEASE REPLY PLEASE RECYCLE Comments: Fax Operator: Phone: 269- 8658 IF FAX DOES NOT TRANSMIT PROPERLY, PLEASE CALL FAX OPERATOR. The Information contained in this fax is CONFIDENTIAL AND /OR PRIVILEGED. This fax is Intended to be reviewed initially by only the Individual named above. If the reader of this transmittal page Is not the Intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination or copy of this fax or the information contained herein is prohibited. If you have received this fax In error, please immediately notify the sender by telephone and return this fax to the sender at the above address. Thank you. Form Date: 12/30/2005 JAN -17 -2006 TUE 04:19 PN ST LAND OFFICE FAX NO. Ai 269 8905 P. 02 al X105 001.910 -O *Cording Dist: 311 Palmer A 1/26/2005 2:45 PM Pages: 1 of 9 K it NNIIl1IIlII II 1111 1IIIli A STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES MENTAL HEALTH TRUST LAND OFFICE 718 "L" Street, Suite 202 Anchorage, Alaska 99501 MEMORANDUM OF OIL AND GAS LEASE Record this document in the Palmer Recording District. MI No. 9300054 The Alaska Mental Health Trust Authority, through its agent, the Mental Health Trust Land Office, hereby gives notice of the following unrecorded Oil and Gas Lease, serialized as MHT 9300054. Said Lease is made by and between the State of Alaska, Department of Natural Resources, Mental Health Trust Land Office, 718 L Street, Suite 202, Anchorage, Alaska 99501 "Lessor") as agent for and on behalf of the Alaska Mental Health Trust Authority "Trust Authority and Storm Cat Energy Corporation, Suite 430-580 Hornby Street, Vancouver, British Columbia V6C 3B6. "Lessee Said Lease is made effective as of 2005. The Leased Area is located in the State of Alaska, Palmer Recording District, Third Judicial District, and more particularly described as follows: TRACT 29; See attached Exhibit "A" Said lease is issued for an initial primary term of five (5) years from the Effective Date. Extension of said Lease is governed by Paragraph (a), below. (a) Extension (1) Said Lease shall be extended automatically if and for so long as oil or gas is produced in paying quantities from the Leased. Area. (2) Said Lease shall be extended automatically if it is committed to a unit agreement approved or consented to by Lessor and will remain in effect for so long as it remains committed to such unit agreement. (A) If the drilling of a well whose bottom hole location is in the Leased Area has commenced as of the date on which said Lease otherwise would expire and such drilling is continued with reasonable diligence, said Lease shall continue in effect State Business NO CHARGE Page 1 of 4 JAN -17 -2006 TUE 04:19 PM ST LAND OFFICE FAX NO, 117 269 8905 P. 03 until ninety (90) days after cessation of that drilling and for so long thereafter as oil or gas is produced in paying quantities from the Leased Area. (B) In the event that the Lease is extended as described above based solely on the development and production of coal bed methane, lease rights will terminate with respect to the development and production of oil, gas, and associated substances other than coal bed methane that may be located within the Leased Area (C) If oil or gas in paying quantities is produced from the Leased Area, and if that production ceases at any time, said Lease shall not terminate if drilling or reworking operations are commenced on the Leased Area within six (6) months after cessation of production and such operations are prosecuted with reasonable diligence; if those drilling or reworking operations result in the production of oil or gas, said Lease shall remain in effect for so long as oil or gas is produced in paying quantities from the Leased Area. (4) If there is a well capable of producing oil or gas in paying quantities on the Leased Area, said Lease shall not expire because Lessee fails to produce that oil or gas unless Lessor gives notice to Lessee, allowing a reasonable time, which shall not be less than six months after notice, to place the well into production, and Lessee fails to do so. If production is established within the time allowed, said Lease shall remain in effect for so long as oil or gas is produced in paying quantities from the Leased Area. (5) If Lessor directs or approves in writing a suspension of all operations on or production from the Leased Area (except for a suspension necessitated by Lessee's negligence or willful misconduct), or if a suspension of all operations on or production from the Leased Area has been ordered under federal, state or local law, Lessee's obligation to comply with any express or implied provision of said Lease requiring operations or production shall be suspended, but not voided, and Lessee shall not be liable for damages for failure to comply with that provision. If the suspension occurs before the expiration of the primary term, the primary term shall be extended at the end of the period of the suspension by adding the period of time lost under the primary term because of the suspension. If the suspension occurs during an extension of the primary term under this paragraph, upon removal of that suspension, Lessee shall have a reasonable time, which shall not be less than six months after notice that the suspension has been lifted, to resume operations or production. Any suspension of operations or production specifically required or imposed as a term of sale or by any stipulation made a part of said Lease shall not be considered a suspension ordered by law. (6) If Lessor determines that Lessee has been prevented by force majeure, after diligent efforts made in good faith, from performing any act that would extend said Lease beyond the primary term, said Lease shall not expire during the period of force majeure_ If the event of force majeure occurs before the expiration of the primary term, the primary term shall be extended at the end of the period of force majeure by adding the period of time lost under the primary term because of the force majeure. If the event of force majeure occurs during an extension of the primary term under this Paragraph said Lease shall not expire during the period of force majeure plus a reasonable time after that period, which shall not be less than sixty (60) days, for Lessee to resume operations or production. (7) Nothing in Paragraphs (a)(5) or (a)(6) above shall suspend Lessee's obligation to pay royalties or other production or profit -based payments to Lessor IM III II IIIIIII IuII0 Page 2 of4 2 of 9 2006. 001510 -0 JAN -17 -2006 TUE 04:20 PII e ST LAND OFFICE FAX NO. 147 269 8905 P. 04 from operations on the Leased Area that are not affected by any suspension or force majeure, or shall suspend Lessee's obligation to pay rentals. (8) If, in the case of the development of coal bed methane, a well has been completed within the primary term and the well is being dewatered in a diligent manner in order to achieve production, and the dewatering process extends beyond the primary term before production is achieved, said Lease will, subject to Paragraph (a)(3)(B) above, remain in effect until ninety (90) days after completion of the dewatering operation and for so long thereafter as coal bed methane is produced in paying quantities from the Leased Area. The Leased Area is subject to all the terms and conditions of said Lease, reference to which may be made for a complete statement of rights and obligations of Lessor and Lessee. Should there be any discrepancy between this Memorandum of Oil and Gas Lease and the Lease, the Lease shall control. IN WITNESS WHEREOF, the parties hereto have executed, delivered, and accepted this Memorandum of Oil and Gas Lease as of the date written below. Dated this day of n a, -L,_,, 2005 LESSOR LESSEE Alaska Mental Health Trust Authority, Storm Cat Energy Corporation through its agent, the Mental Health Trust Land Office By. By. AScAfte4i.sezasu,---- Akin Ti Executive Director Title: ,s,tk STATE OF ALASKA )ss. THIRD JUDICIAL DISTRICT The Foregoing instrument was acknowledged before me by LfGndq ‘0640(P Executive Director of and on behalf of the Statof Alaska, Department of Natural Resources Mental Health Trust Land Office on this Zl day of: u r 4 ,14 2005. 01N11101/0 ,Gy OQ: Ol�// otary Public 'for e State of Alaska syG My Commission expires: 3 i$ /a6 =4 :mss NOTARY; y,.. PUBLIC,' III 111111! 111111111111111III111 Page 3 of 4 }i 08 2 0e°. 4 l °ini�� 200 0 0 1 910 -0 JAN-17-2006 TUE 04:20 PM eST LAND OFFICE FAX NO, lt 269 8905 P. 05 OF l a c it d A STATE THIR Cleauci44,4 )ss. D JI.TrACIAL, T T o F resoing instrument was acknowledged before me by o 1 e .17 a 411FAR. t the Corporation on be l' oration on this 1/1.1. y of 1 111k, 2005. 4° 4 1 1 7 ''N‘ fa 0 c,,,'' 1:1 ...i dr Notary Public for the State o Texas .1 '1) My Commission expires: /c? 4 9 t2 Return to: 'Trust Land Office Page 4 of 4 718 "L" Street. Suite 202 Anchorage, AK 99501 M111111111111111 4 of 9 2006-001910-0 JAN -17 =2006 TUE 04:20 PN oST LAND OFFICE FAX NO. 147 269 8905 P. 06 Exhibit A Tract 29 T. 17 N.. R. 4 W., S.M. Section 1 Section 1 640.000 Section 2 Section 2 640.000 Section 3 Section 3 640.000 Section 5 Portion in Lot 5 of USS #4643 Section 6 Portion in Lot 2 of USS #4643 4.970 Portion in Lot 3 of USS #4643 4.970 Portion in Lot 5 of USS #4643 3.990 Section 9 Section 9 640.000 Section 10 North 1/2 Southwest 1/4 North 1/2 of North 1/2 of Southeast 1/4 411.000 South 1/2 of Southeast 1/4 South 1/2 of North 1/2 of Southeast 1/4 120.000 Section 11 See List Below 2.220 Section 12 Portion in Lot 1 of USS #3519 7.370 Portion in Lot 2 of USS #3519 5.260 Portion in Lot 3 of USS #3519 3 -040 Lot 12 4.100 Portion in Lot 21A of USS #3519 4.970 Portion in Lot 4A of USS #3519 7.000 Section 13 See List Below 322.040 Section 14 See List Below 247.800 Section 15 See List Below 490.600 Section 16 See List Below 598.780 IfIIIJII1JI IIIIIIIIIFIII 5 of 9 2006.001810.0 JAN -17 -2006 TUE 04:20 PN oST LAND OFFICE FAX NO. 1 7 269 8905 P. 07 Section 17 Portion in Tr. "B" Plat #81 -13 Palmer 160.130 Portion in Tr. "A" Plat #81 -13 Palmer 160.000 Portion in Tr. "C" Plat #81 -13 Palmer 160.440 Portion in Tr. "C" Plat #81 -13 Palmer 160.050 Section 1 8 See List Below 531.550 Total Acres: 5970.280 MH Parcels In Section 11 Lot 1 5.000 Lot 2 5.000 Lot 3 5.000 Lot 4 5.000 Lot 11 2.390 Lot 12 2.620 Lot 47 2.570 South 1/2 of Northwest 1/4 of Southwest 1/4 Southwest 1/4 of Southwest 1/4 60.000 Portion in Lot 6 of USS #3519 1.800 Portion in Lot 14 of USS #3519 2.790 Lot 5 5.000 Lot 6 4.780 Lot 7 5.920 Lot 8 4.750 Lot 14 2.000 Lot 18 3.970 Lot 19 4,510 Lot 20 4.560 Lot 21 6.210 Lot 22 5.000 Lot 23 4.570 Lot 24 3.670 Lot 25 4.450 Lot 26 4.400 Lot 27 3.830 Lot 28 5.540 Lot 29 5.440 Lot 30 5.050 Lot 31 7.140 Lot 32 4.620 Lot 33 2.080 Lot 34 1.960 Lot 35 0.710 Lot 36 1.370 Lot 41 5.000 Lot 42 5.000 Lot 43 111111111111111111111 5.000 Lot 44 5.000 6 of 9 2006- 001910 -0 JAN -17 -2006 TUE 04:20 PN oST LAND OFFICE FAX NO. 1 269 8905 P. 08 Lot 45 5.000 Lot 48 5.000 North 1/2 of Northwest 1/4 of Southwest 1/4 20.000 Southwest 1/4 of Northeast 1/4 of Southwest 1/4 10.000 Northeast 1/4 of Northwest 1/4 of Northwest 1/4 10.000 Northeast 1/4 of Northwest 1/4 of Northeast 1/4 10,000 Portion in Lot 4A of USS #3519 2.220 Total: 275.920 MH Parcels in Section 13 Lot 10 5.000 Lot 11 4.400 Lot 16 5.000 Lot 31 9.010 Lot 32 8.460 East 1/2 of Southeast 1/4 Northeast 1/4 of Northwest 1/4 of Southeast1/4 90.000 Southeast 1/4 of Southwest 1/4 of Southwest 1/4 10.000 Lot 19 1.010 Lot 1 7.440 Lot 2 1,460 Lot 3 4.010 Lot 4 9.820 Lot 8 4.340 Lot 12 6.130 Lot 13 6.510 Lot 14 2.500 Lot 15 5.000 Lot 17 4.980 Lot 18 4.980 Lot 20 0.780 Lot 21 1.210 NE1 /4NE1 /4NE1 /4 S1 /2NE1 /4NE1 /4 W1 /2NW1 /4NE1 /4 S1/2NE1 /4 130.000 Total: 322.040 MH Parcels in Section 14 Lot 2 2.500 Lot 8 3.770 Lot 11 5.000 Lot 12 1.240 Lot 13 2.490 Lot 14 1.830 Lot 15 5.890 Lot 16 4.660 Lot 44 9.390 Lot 45 5,610 Lot 46 7.800 Lot 47 2.140 West 1/2 of Northwest 1/4 80.000 Lot 26 3.680 Lot 28 4.720 Lot 29 if IiiIiIi1iii 1tlllIII1II1tI!I 4.890 7 of 9 2005. 001910 -0 JAN -17 -2006 TUE 04:20 PNoST LAND OFFICE FAX NO. 17 269 8905 P. 09 Lot 30 3.990 Lot 33 1.920 Lot 39 5.000 Lot 40 4.310 Lot 41 3.340 Lot 43 5.000 Southeast 1/4 of Southeast 1/4 of Southwest 1/4 Southwest 1/4 of Southeast 1/4 50.000 Portion in Lot 8 of USS #3520 3.700 Portion in Lot 15 of USS #3520 4.470 Lot 9 4.100 Lot 10 5.000 Lot 27 4.400 Lot 38 1.000 Lot 42 5.960 Total: 247.800 MH Parcels In Section 15 Portion in Lot 2 of USS #4644 4.990 Portion in Lot 3 of USS #4644 4.990 Portion in Lot 4 of USS #4544 5.000 Portion in Lot 5 of USS #4644 4.580 Portion in Lot 6 of USS #4644 3.140 Portion in Lot 7 of USS #4644 1.140 Portion in Tr. "A" Plat #81 -13 Palmer 160.230 Portion in Tr. "A" of ASLS #900162 Plat #92 -28 Palmer 4.400 Portion in Tr. "B" of ASLS #900162 Plat #92 -28 Palmer 4.760 Portion in Tr. "B" Plat #81 -13 Palmer EXCLUDING Tr. "A" and Tr. "5" of asls #900162 112.230 Portion in Tr. "C" Plat #81 -13 Palmer 10.400 No Deed Reference No Property Description 0.000 Portion in Tr. "D" Plat #81 -13 Palmer EXCLUDING Tr. "A" and Tr. "B" of asls #900162 151.510 No Deed Reference No Property Description 0.000 No Deed Reference No Property Description 0.000 Portion in Yr. "E" Plat #81 -13 Palmer 23.210 No Deed Reference No Property Description 0.000 No Deed Reference No Property Description 0.000 Total: 490.600 MH Parcels In Section 16 Portion in Tr. "A" Plat #81 -13 Palmer 155.470 No Deed Reference No Property Description 0.000 No Deed Reference No Property Description 0.000 No Deed Reference No Property Description 0.000 Portion in Tr. "B" Plat #81 -13 Palmer 159.980 Portion In Tr. "C" Plat #81 -13 Palmer 159.970 Portion in Tr. "D" Plat #81 -13 Palmer 108.570 Portion in Yr. "E" Plat #81 13 Palmer 14.690 Total: 598.780 MH Parcels In Section 18 Portion in Tr, "A" Plat #81 -13 Palmer 42.240 Portion in Tr. "B" Plat #81 -13 Palmer I 1 87.260 s of 9 2006 001910.0 ..JAN -17 -2006 TUE 04:21 PNI ST LAND OFFICE FAX NO. 1 7 269 8905 P. 10 Portion in Tr. "C" Plat #81 -13 Palmer 59.230 Portion in Tr. "F" Plat #81 -13 Palmer 103.760 Portion in Tr. "D" Plat #81 13 Palmer EXCLUDING Little Susltna River 79.000 Portion in Tr. "E" Plat #81 -13 Palmer 160.060 Total: 531.550 II I I I I I I I I I I II f II I lI I I fI l II I 9 of 9 2006 001910-0 11 I GEORGE POLLOCK 3743 RICHARD EVELYN BYRD A ANCHORAGE, ALASKA 99503 760 4- 1I 2'4"'"'4,- 89- 7202/3252 DATE ry ORDER OF t =L "tt 14), �1�+��isi IcaUSA 1 OLLARS 8 k Ancho 9e8Bpyj Z Federal Credit Union "'“sa FOR l�CC „4-i-lie x! 32527202�i: L 70000 2: 7699 1 760 TRANSMITTAL LETTER CHECKLIST WELL NAME /�O77 t) QA gle, I PTD# 2 0 !j J Development Service X Exploratory Stratigraphic Test Circle Appropriate Letter Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. API No. 50- API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name PH) and API number (50- from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be SAMPLE 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. Rev; 1/05/06 C: \jody \transmittal_checklist 411111 o w' :l a 0 w H a) c9 1 m I oo, O 0, r: 1 a 1 z Z' w U 1 Z Z 1 rn. rn w CC 1 6, ce 1 N' 1 U. M. O. a r O. 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