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Home My WebLink About208-123David Douglas Hilcorp Alaska, LLC GeoTechnician 3800 CenterPoint Drive, Suite 1400 Anchorage, AK 99503 Tele: 907 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By: Date: DATE 9/14/2020 To: Alaska Oil & Gas Conservation Commission Natural Resources Technician 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL BCU-19 PTD 208-123 Halliburton CBL 12/30/2019 Please include current contact information if different from above. Received by the AOGCC 09/14/2020 PTD: 2081230 E-Set: 33835 Abby Bell 09/14/2020 1a. Well Status:Oil SPLUG Other Abandoned Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development Exploratory GINJ WINJ WDSPL No. of Completions: _0 Service Stratigraphic Test 2. Operator Name: 6. Date Comp., Susp., or 14. Permit to Drill Number / Sundry: Aband.: 3. Address: 7. Date Spudded: 15. API Number: 4a. Location of Well (Governmental Section): 8. Date TD Reached: 16. Well Name and Number: Surface: Top of Productive Interval: 9. Ref Elevations: KB: 17. Field / Pool(s): GL:160.5' BF: 160.5' Total Depth: 10. Plug Back Depth MD/TVD: 18. Property Designation: 4b. Location of Well (State Base Plane Coordinates, NAD 27): 11. Total Depth MD/TVD: 19. DNR Approval Number: Surface: x- y- Zone- 4 TPI: x- y- Zone- 12. SSSV Depth MD/TVD: 20. Thickness of Permafrost MD/TVD: Total Depth: x- y- Zone- 4 5. Directional or Inclination Survey: Yes (attached) No 13. Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic information per 20 AAC 25.050 (ft MSL) 22. Logs Obtained: 23. BOTTOM 20" K-55 106' 13-3/8" L-80 2,509' 9-5/8" L-80 4,352' 24. Open to production or injection? Yes No 25. 26. Was hydraulic fracturing used during completion? Yes No DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. Date First Production: Method of Operation (Flowing, gas lift, etc.): Hours Tested: Production for Gas-MCF: Test Period Casing Press: Calculated Gas-MCF: Oil Gravity - API (corr): Press. 24-Hour Rate October 1, 2008 September 24, 2008 A028083 N/A N/A 4,464' MD / 4,352' TVDN/A N/A 9,068' MD / 8,678' TVD N/A Sr Res EngSr Pet GeoSr Pet Eng Oil-Bbl: Water-Bbl: Oil-Bbl: 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 N/A Water-Bbl: PRODUCTION TEST N/A Date of Test: Flow Tubing 133# 68# 106' Surface 4,464' (TOW) Gas-Oil Ratio:Choke Size: Per 20 AAC 25.283 (i)(2) attach electronic information 40# Surface DEPTH SET (MD) PACKER SET (MD/TVD) Surface CASING WT. PER FT.GRADE N/A 316892 TOP SETTING DEPTH MD Surface SETTING DEPTH TVD 2432495 BOTTOM TOP 12-1/4" 113 sx Surface 16" HOLE SIZE AMOUNT PULLED 50-029-20579-00-00 BCU 19 317469 2433994 N/A CEMENTING RECORD N/A 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 2/8/2020 1192' FNL, 1657' FWL, Sec 34, T7N, R10W, SM, AK 2679' FNL, 1082' FWL, Sec34, T7N, R10W, SM, AK 208-123 / 319-559 Beaver Creek Field / Beluga & Sterling GP 178.5' 4,464' MD / 4,352' TVD STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG Hilcorp Alaska, LLC WAG Gas Driven Surface 2,510' 869 sx 505 sx N/A SIZEIf Yes, list each interval open (MD/TVD of Top and Bottom; Perforation Size and Number; Date Perfd): ACID, FRACTURE, CEMENT SQUEEZE, ETC. CASING, LINER AND CEMENTING RECORD List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data within 90 days of completion, TUBING RECORD WINJ SPLUGOther Abandoned Suspended Stratigraphic Test No No (attached) No Form 10-407 Revised 3/2020 Submit within 30 days of Completion, Suspension, or Abandonment By Samantha Carlisle at 10:14 am, Jun 05, 2020 Abandonment Date 2/8/2020 HEW RBDMS HEW 6/9/2020 133 MDG xG 2/8/2020 DSR-6/10/2020 Abandoned DLB 06/10/2020 Well sidetracked to BCU 19RD 4,464' SFD 6/11/2020 Aband. gls 6/22/20 Conventional Core(s): Yes No Sidewall Cores: 30. MD TVD Top of Productive Interval N/A LB 33 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Name: Cody Dinger Contact Email:cdinger@hilcorp.com Authorized Contact Phone: 777-8389 General: Item 1a: Item 1b: Item 4b: Item 9: Item 15: Item 19: Item 20: Item 22: Item 23: Item 24: Item 27: Item 28: Item 30: 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. Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. 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). 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. 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. The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). 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. Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data within 90 days of completion, suspension, or abandonment, whichever occurs first. Well Class - Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Formation at total depth: Wellbore Schematic, Abandonement reports. Signature w/Date: 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. INSTRUCTIONS 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. TPI (Top of Producing Interval). Yes No Well tested? Yes No 28. CORE DATA If yes, list intervals and formations tested, briefly summarizing test results. Attach separate pages to this form, if needed, and submit detailed test information, including reports, per 20 AAC 25.071. NAME 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. 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. If Yes, list formations and intervals cored (MD/TVD, From/To), 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. Authorized Name: Monty Myers Authorized Title: Drilling Manager Permafrost - Base 29. GEOLOGIC MARKERS (List all formations and markers encountered): FORMATION TESTS Permafrost - Top No NoSidewall Cores: Yes No Form 10-407 Revised 3/2020 Submit within 30 days of Completion, Suspension, or Abandonment Digitally signed by Monty M Myers DN: cn=Monty M Myers, c=US, o=Hilcorp Alaska, LLC, ou=Technical Services - AK Drilling, email=mmyers@hilcorp.com Reason: I am approving this document Date: 2020.06.04 17:23:20 -08'00' Monty M Myers _____________________________________________________________________________________ Updated by CJD 6-4-20 Abandoned Schematic Beaver Creek Unit Well: BCU 19 PTD: 208-103 API: 50-133-20579-00-00 CASING DETAIL Size Type Wt/ Grade/ Conn ID Top Btm 20" Conductor 133 / K-55 / Weld 18.730” Surf 106’ 13-3/8” Surface 68 /L-80 – J-55 /BTC 12.415” Surf 2,510’ 9-5/8" Intermediate 40 / L-80 / BTC 8.835” Surf 7,447’ BC 19 well sidetracked to BCU19RD Activity Date Ops Summary 1/27/2020 Held PJSM with Peak operators and rig crew on tear out and rig move. Tore out degasser skid, all three pit modules, pumps and gen 1-2 skid. PU rig mats, removed ice and loaded same. Had rig mats pits and pumps on the road to BCU at 09:00 as per permit. Spotted crane, removed derrick hooch and;layed down windwalls. Removed choke house, spotted second crane, picked derrick off carrier, picked carrier off sub, picked sub off pony walls. Transported doghouse and gen skid to BCU, cont cleaning and loading mats and pony walls. transported sub, derrick, carrier, mats, pony walls and cranes;to BCU. No issue crossing the bridge. Set pony walls at cellar, spotted cranes, set sub on pony walls and centered up over wellhead, set carrier on sub, set derrick on carrier, stood "v-door" windwall, stood derrick windwalls and set hooch. SIMOPS: cut up and policed up liner and felt at Peak yard;Rest all hands for the night. No night crew. 1/28/2020 Held PJSM with Peak operators and rig crew. Started bed truck, crane, loaders and light plants. Staged crane and flew iron roughneck to rig floor. set pit mods 1 and 2. Flew choke house to rig floor, allowing rig Foreman to obtain measurements of sag of outriggers. Set pump skids, stood mast, set;doghouse skid and raised same, set gen 1-2 skid, took on rig fuel in gen skid tank, set both boiler skids, set pit mod #3, raised pit roof tops, layed out felt and liner for catwalk, set mat boards for catwalk, set catwalk and beaver slide. Flew windwall behind iron roughneck,;Fired up rig gen and turned on the lights, Peak welder finished up a handful of small projects, set feed pump and centrifuge, set degasser skid, set 4 trailers, genset and transformer, wired in and powered up same, hung a couple windwalls on pits and shut down for the night.;Rest all hands for the night. No night crew. 1/29/2020 Fired up rig gen and turned on lights, checked air system throughout the rig and pressured up same, heated up change shack genset and fired up, powered up safety shack, Peak on location at 7AM, warmed up crane, spotted and hung remaining windwalls on pits, installed tarps throughout the rig,;installed ventline on poor boy and raised same, shimmed end of poorboy skid to better align piping, rig Foreman brought out Atlas Rep to monitor air dryer system, Handy Berm installed around entire rig footprint, set liner and set gen 3, set service shacks, set liner and upright water tank near rig;water tank (for cementing), raised sub 1/2" to keep choke house outriggers off pit roof, set comm tower and RU comm’s, prepped drill line for spool up on drum, spooled drill line onto drum, installed standpipe bleeder and valve assembly on rig floor, policed up scrap liner around rig, had heater;trunk in covered cellar box most of the day to thaw any ice in wellhead.;Rest all hands for the night. No night crew. Night Drilling Foreman keeping watch over rig gen. 1/30/2020 Swapped out camp gen set, shutting down on fault, inspect and prep derrick to scope, scope derrick, Clean and prep to dress pumps w/ 5'' Liners, Set centrifuge control panel and hurricane vac, r/u derrick climber, hang lower torque tube and pin, Stage and P/U top drive to rig floor, hook up top;drive, service loop and Kelly hose, trouble shoot alignment issues with service loop and Kelly hose vs choke house wall, window and lights, build containment and lay liner for auxiliary fuel tank, set fuel tank inside containment, hook up power to third party service shacks, string cord out for;centrifuge control panel, Install/replace certified chart recorder in choke room.;Night Drilling foreman watching generators while Day crew rests 1/31/2020 Ridgeline crew started at 8AM, cont working on kelly hose adjustment, prepped boiler #1 to take on hot water, sent clean Peak vac truck to Swanson River for load of hot water, troubleshoot topdrive HPU electrical and started same, installed new hadrails on mezz deck, installed hardline from choke;manifold to degasser shock hose, obtained measurements for 2" gaurd over choke house wall lights and window, set liner, mat and upright water tank at water well on pad, Swaco Rep came out, removed shipping blocks from centrifuge and test ran OK, wired in Sperry shack,;Orient parker hands,Take on load of hot water to boilers, stage boiler temp and pressure up open steam around to rig and let boilers pressure up, open steam to rig, put heater trunk in boiler #2 begin warming it up, take on load of hot water to pill pit, clean and inspect pits f/ welding debris;Finish dressing pumps w/ 5'' Liners, clean and inspect valves and seats, peak off loading mud products and building drum storage docks 2/1/2020 Continue to warm rig w/ #1 boiler, Continue warm # 2 boiler and prep to fire same, continue work on de-gasser chg out of elect mtr. Install spacer spool on btm of single gate. set test plug. trouble shoot bridge cranes and re plumb same start to put water in pits,;Charge loader and chg out belt on same, Thaw ice and froze open valves, r/up Pason rig watch system, PTSM w/ new crew chg out and walk dn of rig, continue nip/up bopes, Continue warm rig w/ #1 boiler and continue to pre warm #2 boiler for fire up continue chg out of degasser elect mtr;Continue N/U BOP Stack, thawing pits and lines, Continue warming boiler #2, Fuel Boiler #2 and prep to fire, general house keeping around rig, turn steam loop on to water tank begin thawing;Continue tightening bolts on BOP Stack, both boilers online, chink holes around rig, continue working in pits thawing suction lines equalizers and suction valves, unbolt stack (riser air boot adaptor wouldn't fit) remove 1' spacer spool, reinstall stack and tighten bolts, Install drip pan, open;steam loop to water tank thaw snow and ice, begin thawing valves on water tank boiler #2 hot well fluid increasing, trouble shoot found equalizer valve shut in and froze, remove and thaw 2/2/2020 Continue r/up and warm rig. Continue thaw equalizer line and heat trace same on boiler #2, Hook up koomey lines, and flow nipple to stack. Continue Thaw mud tank #6 and pit lines. R/up new tongs, house keeping, chinking rig and install exterior lighting. Continue and finish R/up of pason;Rig watch system. Continue r/up and warm rig w/ both boilers. Warm TDS HPU, Set two cmt silos, continue and finish thawing Pits and lines. house keeping and chink rig. Start Thawing water tank w/ steam blanket. Install 2-7/8" X 5" VBR's in Top and btm rams & Swap Koomey line fittings;Install double valve on TDS work on plumbing manual guages on choke manifold;Install floor handling equipment bails and elevators, continue thawing out the water tank, steam loop froze, send truck after load of hot water for water tank, continue warming rig and chinking holes install curtain on rig floor across beaver slide opening, install guards over window and lights on;choke house, fill upright water tank w/ 350 bbls H2O approximate rate is 100 bph;Finish installing guards on lights and windows on choke house, R/U test equipment to new test pump, R/U water lines for water tank (LAT/LONG): evation (RKB): API #: Well Name: Field: County/State: BCU 19 Beaver Creek Hilcorp Energy Company Composite Report Kenai, Alaska Contractor AFE #: AFE $: Job Name:BCU 19 Spud Date: Install 2-7/8" X 5" VBR's in Top and btm rams 2/3/2020 Purge air and get a circulating water system. Fill test pump water tank and fill stack (leak at top of annular btm of air boot flange. tightin same School on use of new grease gun and gresase choke manifold, hcrs and manuals valves. start mix first batch of 6% KCL/EZ mud.;Pre test BOP's t/ 250/5000 psi f/ 5 min w/ 3.5'' and 4.5'' test jts, test top drive man and auto IBOP, Choke valves inside man choke and kill, HCR choke and kill, kill line mezz valve, upper lower and blind rams, annular, perform Accumulator draw down test 20 sec to 200 psi 90 sec to full pressure.;Blow down lines and R/D test equipment, pull test plug set wear ring, take on water to pits for second batch of KCL mud.;General housekeeping on rig, hands cleaning each module picking up tools and hoses and equipment putting back in proper place, continue mixing second batch of 6% KCL mud.;Work on rig acceptance check list. Compare torque values on top drive iron roughneck and rig tongs, perform derrick inspection, dress board for sanding back pipe, set up pipe racks, load racks w/ DP stap and tally Dp. 2/4/2020 Continue Work on rig acceptance check list. house cleaning Continue mixing Batch #2 of 6%/KCL/EZ mud @ 9.5 ppg all hands attend Pre spud meeting continue trouble shoot derrick camera issue receive tools and r/up Sperry.;Cont. mixing batch #2, Continue trouble shoot derrick camera issue, installed draw works decoder, shim ODS sub 1/2" adjust Kelly hose, Compare torque values on top drive iron roughneck and rig tongs, install HES standpipe sensor, perform derrick inspection, P/U DP, rabbit, strap and rack back std.;Cont. P/U 4.5" DP, rabbit, strap and rack back stds in the derrick while using the make & brake procedure on the re-cut threads., finished mixing 2nd batch of mud & started mixing 3rd batch, worked on derrick light issue.;Cont. P/U 4.5" DP & racking back in derrick for a total of 55 stds, blew down TD, pulled wear ring, installed test plug, R/U BOP testing equip, serviced rig, finishing up 3rd batch of mud, cont. housekeeping & cleaning around rig. 2/5/2020 Cont. w/ housekeeping & cleaning till 08:00 hrs. when AOGCC & BLM Rep's arrived on location to witness BOP test. Preformed rig inspection & tested gas alarm system (ok), Flooded stack, purged out air, started testing BOP's, 5 min 250 Low/10 min 4500 High, had 1 FP on test #5 HCR choke,;functioned HCR choke, re-tested and passed. R/D testing equip., blew down choke manifold, installed wear bushing and run in lock downs.;Gathered up XO's, C/O boot on mud pump suction, primed both pumps w/ water, M/U XO's to Tri-Point's running tool, RIH w/ tool, 1 std. of DP, 10' pup, TIW, and 5' pup, tagged up @ 70' in, closed TIW, screwed into retrievable packer w/ 11 turn to the right, filled hole off trip tank, M/U TD;open TIW and cracked bleeder at floor manifold (static), pulled retrievable packer free, travel weight 54K, monitored well (static). Started circulating STS w/ pump #2, had issues w/ pop off, switched over to pump #1 and pumped 1700 stks, switched back over to pump #2, 2" bleeder value at the pump;started leaking, swapped back to pump #1 while re-building value, once valve was fixed finished pumping STS w/ pump #2, shut down pump, lined up both pumps and noticed pulsation dampener pressure on pump #1 bleed off to zero, started to trouble shoot pulsation dampener on pump #1 while cont.;to circ. w/ pump #1.;Made decision to shut down pump, blow down TD, POOH and L/D pups, TIW, 1 std. of 4.5", & Tri-point packer (18' total in length), R/U Weatherford, held PJSM, started L/D 3.5" tubing making sure to wipe pipe clean and getting correct calculated hole fill. Currently L/D 1887' of 3.5" tubing. 2/6/2020 Continue and finish l/dn of 3-1/2" 9.3# 8rd tbg kill string total recovered 132 jts and (1) 4' pup and (1) 10' pup w/ 18' of a Tri-point packer assy.;R/DN Weatherford, and clear & clean floor string shaker camera cable.;Service rig Replace liner gasket on MP #2, chg out pulsation dampener bladder on MP #1.;P/up and rack back 2 jt dp . R/up drain hose on rig floor Install keepers in pins on monkey board replace flow paddle sensor in flow line.;PJSM w/ Yellow jacket P/up and M/up Bha #1, 8-1/2" window mills for Gauge and drift run for whip stock.;Slip & cut 294' of drill line due to bad line on drum, had new pulsation dampener bladder fail on MP #1, cont. work on MP.;Adjusted load collar on TD, started strapping, rabbiting, and P/U 4.5" DP & singling in the hole w/ BHA#1 F/13' T/2,300', while using the make & brake procedure on the re-cut threads. Kicked out 3 jts. of DP due to galled threads. Brought out Peak welder, welded new screen in the body of the;pulsation dampener on MP #1.;Held PTSM, crew change, cont. strapping, rabbiting, and P/U 4.5" DP & singling in the hole w/ BHA#1 F/2300'' T/4,403', cont. to use the make & brake procedure, eased in the hole F/4,403 and tagged up on CIBP @ 4,489', POOH racked back 9 stds of 4.5" DP.;Check depth & eased in the hole F/4,403 and tagged up on CIBP @ 4,489', POOH racked back 9 stds of 4.5" DP, currently adjusting Kelley hose. Got calculated pipe displacement during trip. 2/7/2020 Adjusting Kelly hose.;P/up rabbit and strap 18 jts of 4-1/2" CDS- 40 36.86 # HWDP.;PJSM on testing and displacement Test TDS swivel packing , Kelly hose and HP mud line t/ 4500 Psi (ok).;Displace well f/ lease water t/ 9.5 ppg 6% KCL EZ mud, Hilary Garney stop by and conducted a VE on both of the boilers.;Rack back HWDP adjust link tilt bail clamps while mixing pump dry job.;Pooh racking back Dp f/ 4279' t/ Bha#1, L/D top follow through mill, had calculated hole fill during trip.;R/U to test casing, pressure tested casing T/2800 psi for 15 min (ok), pumped 179 gals, bled back 126 gals, R/D testing equip, blew down choke manifold and stand pipe.;P/U & M/U BHA #2 -mills, TM, DM, and float sub w/ solid float, TIH w/ 2 stds of HWDP, shallow tested MWD tools for detection (ok), GPM-315 SPP-440 psi.;POOH & rack back 2 stds, P/U & M/U whip stock on bottom of BHA #2, eased in the hole w/ BHA #2 & whip stock F/surface-T/458', running speed @ 1 std. per min.;Held PTSM, crew change, cont TIH F/458'-T/2477', replaced U-bolt on hobble clamp on bales, filled pipe @ 2,500' and get calculated pipe displacement.;Cont. TIH F/2477'-T/4468', broke circulation, currently orientating tool face 45 degrees left, had calculated pipe displacement for trip.;At about 05:30 hrs. Peak hand notice a small drip coming from the sewer cap on the office trailer, the cap was re-secured and the valve was re-shut to stop the leak, the spill was estimated to be a 5 gal spill and HSE Matt Hogge was contacted.;-Hauled 0 bbls fluid to KGF G&I -Cumulative: 0 bbls -Hauled 0 bbls solids to KGF G&I -Cumulative: 0 bbls -Daily Metal: 0 lbs. -Cumulative: 0 lbs. 2/8/2020 Slack off and seen good indication of anchor trip w/ whip stock @ 45L @ 4488', went to over pull anchor 10k and lost weight appeared to slide up hole, set dn 20k and confirmed movement up hole Worked pipe t/ 10k over and staged up dn weight t/ 40k w/ movement up hole twice for total of 6';or 4483' and sheared off work pipe up hole +- 6' and sat back dn on top of whip stock @ 4464' & applied 10k torque w/ no movement in tool face.;Establish parameters Mill window f/ 4464' T.O.W t/ 4476' B.O.W, mill rat hole t/ 4481' (Sample @ 4475' showing 10% metal 70% cmt 20% coal and 20% clay stone).;PTSM crew chg and PJSM continue mill rat hole f/ 4481' t/ 4496'.;drift window with and with out rotation and pumps and dress rough areas dn to slight over pull.;R/U & blew metal shaving back into well bore through manual choke & kill valves, R/U testing equip for FIT test, preformed FIT test T/960 psi EMW-13.6 ppg, pumped a total of 45 gals & bled back 42 gals (good test).;R/D testing equip. Blew down choke manifold & kill lines back through MP's.;Broke circulation, pumped dry job 2 lbs. over MW, blew down TD & stand pipe, started replacing bladder in pulsation dampener on #1 MP while POOH.;POOH F/4437'-T/632', finished replacing bladder in pulsation dampener on MP #1, currently hold 400 psi, completed rig acceptance check list, accepted rig at midnight.;Held PTSM, crew change, finished L/D BHA #2, watermelon mill was 1/16" und er gauge (see photos), Cal Disp.=25 bbls Act Disp.= 30 bbls Diff Disp.=5 bbls.;Cleared & cleaned rig floor, serviced rig.;Held PJSM, started P/U directional BHA #3, currently uploading data to MWD tools.;-Hauled 0 bbls solids to KGF G&I -Cumulative: 0 bbls -Hauled 0 bbls fluid to KGF G&I -Cumulative: 5 bbls -Daily Metal: 191 lbs. -Cumulative: 191 lbs. Pull packer/ tubing Continue Work on rig acceptance AOGCC & BLM Rep's arrived on location to witness BOP test. Preformed pp p p Mill window f/ 4464' T.O.W t/ 4476' B.O.W, Continue and finish l/dn of 3-1/2" 9.3# 8rd tbg kill string t BOPE test and tagged up on CIBP @ 4,489',@ P/U & M/U whip stock on bottom of BHA #2, g M/U XO's to Tri-Point's running tool, RIH w/tool, 1 std. of DP,/pppppp 10' pup, TIW, and 5' pup, tagged up @ 70' in, closed TIW, screwed into retrievable packer w/ 11 turn to the right, Mill window 4464 ft w/ whip stock @ 45L @ 4488', STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS JAN 21 2020 A®n�Ci 1. Operations Abandon LJ Plug Perforations LJ Fracture Stimulate Pull Tubing Li Operations shutdown Ll Performed: Suspend ❑ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Change Approved Program ❑ Plug for Redrill ❑ erforate New Pool ❑ Repair Well Q Re-enter Susp Well ❑ Other: Run Kill String Q 2. Operator Name: Hilcorp Alaska, LLC 4. Well Class Before Work: Development Q 5. Permit to Drill Number: Exploratory ❑ 208-123 3. Address: 3800 Centerpoint Dr, Suite 1400 Anchorage, Stratigraphic❑ Service ❑ 6. API Number: AK 99503 50-133-20579-00-00 7. Property Designation (Lease Number): 8. Well Name and Number: FEDA028083 Beaver Creek Unit (BCU) 19 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field/Pool(s): N/A Beaver Creek / Beluga Gas Pool 11. Present Well Condition Summary: 5,465; 6,090; Total Depth measured 9,068 feet Plugs measured 6,204; 7,515 feet true vertical 8,678 feet Junk measured 6,454 (3.5" tbg) feet Effective Depth measured 5,465 feet Packer measured 5,245 feet true vertical 5,207 feet true vertical 5,020 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8'. 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic "�— Tubing (size, grade, measured and true vertical depth) 3-1/2" 9.3# / L-80 5,272' MD 5,043' TVD DLH Hydraulic 5,245' MD Packers and SSSV (type, measured and true vertical depth) Packer 5,020' TVD N/A N/A 12. Stimulation or cement squeeze summary: N/A Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil -Bbl Gas-Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 3250 Subsequent to operation: 0 0 0 1 325 0 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 15. Well Class after work: Daily Report of Well Operations P1 Exploratory[] Development p ❑ Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16. Well Status after work: Oil LJ Gas ✓ WDSPL LJ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 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: 319-483 Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer(r�hilcoro.com Authorized Signature. Date:J Contact Phone: 777-8420 Form 10-404 Revised 4/2017 `/� 6 q// /, ,Z. RBDMS � JAN 2 3 2020 Submit Original Only Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date BCU -19 50-133-20579-00-00 1 208-123 12/14/19 1/1/20 Daily Operations: 12/14/2019 -Saturday SL arrive on location. PJSM and spot for R/U on BCU -19 Pressure test lubricator to 250psi low / 3,000psi high - test good. RIH with 3.5" GS tag fluid at 610Ft. POOH. RIH w/ 2" JDC to 5,265Ft kb, latch prong, jars wouldn't fire, prong wouldn't come free, shear off POOH. Redress oil jars RIH w/ 2" JDC to 5,265Ft, jar up 2x, POOH w/ PX prong. RIH w/ 3.5" Daniels KOT w/ 1.25" JDS to 5,297Ft, latch dummy valve, POOH w/ dummy valve RIH w/ 3" GS to 5,270Ft, latch plug. POOH with plug R/D Pollard slick line. Bleed 300psi off 9-5/8" x 13-3/8" annulus. 12/19/2019 - Thursday PJSM W/ CREW CONTINUE R/U 401 ELEC LINES,INSTALL LIGHTS IN DARK AREAS ,PUT SKIRT AROUND RIG CARRIER ,GET HEATER BLOWING ON AIR LINES,R/U MUD PUMP LINES,PREP TO STAND UP DERRICK HALF MAST REASE DERICK. SCOPE DERRICK UP AND HOOK UP ALL GUY LINES, FIX TEST PUMP, FIX JET HEATERS, BERM AROUND RIG ALL TANKS. 12/20/2019 - Friday PSJS VERIFY ZERO PSI ON IA AND 0A. START LOADER,CARRIER CHANGE OUT VALVE ON MUD PITS AND DEGASSER,R/U WEIGHT INDACATORS,PREP FOR N/D PRODUCTION TREE,N/U BOP STACK, C/O STAGE LOADER FOR TIRE CHANGE, NOS TEST VOID ON HANGER T/3000 PSI FOR 5 MINS BLEED OFF AND CUT CONTROL LINES N/D PRODUCTION TREE AND STAGE ON TRAILER M/U BLANKING SUB TO HANGER TEST SUB N/U BOP STACK 13 5/8 MUD CROSS,DOUBLE GATE ,ANNULAR AND HOOK UP ALL ACCUMULATOR LINES TO BOP STACK. 12/21/2019 -Saturday PJSM Continue with rig maintenance with all light plants, heaters hook up kill line to choke manifold Continue hammer up bop stack greased all valves on choke manifold . All BOP valves on stack. 12/25/2019- Wednesday PJSM START UP CARRIE MUD PUMP, HEATER VERIFY 0 PRES ON WELL OPEN UP BLIND RAMS CLEAN UP AROUND RIG AND REMOVE SNOW /M/U 3-1/2' TEST JOINT.(AOCGG STATE WITNESS WAVED BY JIM RIGG @ 10:30 AM ON 12-26-19) NOTICE THAT THE 4 WAY VALVE ON THE ACCUMULATOR UNIT BLIND RAM SIDE LEAKING BY CALL OUT HILCORP RIG MECHANIC AND REPLACE NEW 4 WAY VALVE ON THE ACCUMULATOR. AND TEST SAME ALL GOOD CONTINUE TO FLUID PACK BOP SYSTEM ATTEMPT TO TEST BOP TEST JOINT LEAKING BY CONNECTION AND R/D AND M/U CONNECTION RE - DROP TIGHT CHASNG LEAKS ON BOP STACK BLOW DOWN RIG. 12/26/2019 - Thursday Perform PJSM. rig up, check well and verify 0 psi on well. Made up heat trace to stand pipe manifold, choke hose and kill hose. clean around rig, warm it up until temps reached 4deg. shell test on the stack to 250-3,000psi. Draw down test good Cont. test and look for leak. Blow down, RD, shut in well. assist electrician with heat trace. Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date BCU -19 50-133-20579-00-00 208-123 12/14/19 1/1/20 Daily Operations: 12/27/2019 - Friday Hold PJSM Verify 0 pres on well bore Rig up NOS tool and Pull test sub and change out to TWC and install All good Continue Testing BOP 250/3,000 PSI # 1 Blind, CMV # 1,2,7 inside kill line #2 Blind CMV 6,7,8 outside kill #3 Blind CMV # 9, 10.# 3 Kill line valve #4 Annulor Dart valve CMV # 3 Inside Kill valve # 5 VBR 2-7/8" X 5" TIW HCR choke, #6 VBR TIW choke valve Inside Kill line All 250/3000 PSI #7 Both Manual choke valves 1,400 -800 PSI All good R/D All test Equipment and pulled TWC valve R/U Bails and 3-1/2" Tubing Equipment on rig floor and work power tongs All good Fill hole w/ 8.3 production water 31 bbls tubing all good shut in well and blow lines out secure well. 12/28/2019 -Saturday PJSM. Choke well bore for pressure 0 All good M/U Yellow Jacket 3-1/2"Grapple spear RIH and spear hanger BOLDS w/ NOS fill hole w/ 33 bbls water P/U unset hanger w/ P/U 48K release PKR 8 K over Pulled to floor PUW 40K R/D Hanger and Spear and Monitor well 30 mins All good POOH and STD Back 3-1/2" 9 .3# L-80 8rd L/D All gas lift mandrel as go w/ chemical inj line recover 59 SS clamps fill hole every 15 joints 1.9 bbls water. L/D 9-5/8' DLH Hydraulic PKR and Tail assy Tot STD Back 79 stands in derrick Blow Down rig and Secure Well. 12/29/2019 -Sunday PJSM. FILL HOLE 46 BBLS WATER. DUE TO WEATHER CONDITIONS HAILLIBURTON SHOWED UP @ 10am R/U HAILLIBURTON E -LINE W/ CBL -CCL RIH T/ 5500' AND LOG F/ 5,500'T/2,500' POOH AND L/D TOOLS AND M/U 9-5/8" CPBP AND RIH AND SET @ 4500' W/ELM POOH AND R/D HILLIB. R/U TO TEST 9-5/8" CASING and 9-5/8" CIBP SET 4,500' PRESSURE UP TO 2,500 PSI f/ 30 MINS All GOOD BLEED DOWN TO 0 AND BLOW DOWN RIG. 12/30/2019 - Monday PJSM START UP RIG VERIFY NO FRES ON BCU -19 WELL BORE TIH W/ 3-1/2" 8RD KILL STRING 4000' ANF) PO D 800' EXTRA 3-1/2" 8RD TUBING AND RIH W/ THE LAST 10 STDS IN DERRICK AND M/U TRI POINT 9-5/8" HANG OFF PKR RIH 20' AND SET AND RELEASE PKR POOH AND L/D RUNNING TOOL PUW 35K SOW 33K ATTEMPT TO TEST 9-5/8" PKR TEST NO GO M/U RUNNING TOOL RIH AND LATCH UP ON 9-5/8" PKR RELEASE AND RESET 2' ABOVE SET @ 18' ATTEMPT TO TEST AGAIN NO GO POOH W/ PKR CHECKOUT PKR RUBBERS NO ISSUE RIH AND SET F/ 48' TO LDS BACK POOH RETEST 3000 p0 PSI 15 ALL GOOD (BLEED DOWNL/D TRIPOINT RUNNING TOOL AND BLOW DOWN ALL LINE AND REMOVE PIPE SKATE R/D POWER TONG, R/U TO N/D BOP SECURE WELL 19. 12/31/2019 -Tuesday PJSM RIG DOWN BOP R/D ACCUMULATER SYSTEM AND UNHOOK ALL HOSES FROM BOP STACK AND RIG DOWN RIG FLOOR FOR TRANSPORT R/U AND P/U ON OLD CASING HEAD SPOOL AND RELEASE 9-5/8" PACKOFF, CONTINUE N/D 13- 5/8" BOP STACK AND LOAD ON TRANSPORT STANDS CONTINUE;N/U NEW 9-5/8" PACK OFF AND 13-5/8" X 11' CASING SPOOL AND TEST SAME T/ 500 5 MINS AND 5000 PSI 10 MINS ALL GOOD R/D SECURE WELL. 01/01/2020- Wednesday PJSM. CONTINUE RIG DOWN CARRIER TAPS, LOAD OUT 3.5 AND 2-7/8' TUBING SHIP TO TUBOSCOPE, REMOVE POORBOY FROM PITS, RIG DOWN PITS AND ROOFS PJSM CONTINUE SCOPE DERRICK DOWN AND LOWER DERRICK DOWN ON CARRIER AND CONTINUE SPOT ALL RIG COMPONENTS TO BE MOVE AM TO HILCORP YARD IN KENAI LAST REPORT @ BCU 19. Fix C'61- 11ilcorp tlaska, LLA: Permit #: 208-123 API #: 50-133-20579-OOS11 Prop. Des: A - 028083 KB elevation: 182' (21' AGL) Latitude: 60° 39' 28.14" N Longitude: 151001'10.61'W X: 317,471.6 (NAD 27) Y: 2,433,991.7 (NAD 27) Spud: 9/14/2008 TD: 1010112008 Ria Released: 1114109 12:00 furs Tree cap = 6-1/2" Otis Top of 9-5/8" Casing Cement CBL 4/18114 @ 3,880' MD Last Tan: Depth: 6,130' SLM Size/Tool: 2.50" Bailer Date: 6/25/14 Jewelry Detail 1 - Test Packer @ 48'- 12/30/19 2 - End of Tubing @ 4,000'- 12/30/19 3 - COP @ 4,500' - 12/29/19 Top of 3-1/2" Cut Tubing @ 6,454' MD Top of 3-1/2" Tubing Cement @ 6,476' MD Plug @ 7,550' MD Capped w/ 36' of cement Production Tubrna(Abandoned) Beaver Creek Unit#19 3-1/2" LSO 9.3 ppf EUE ORD Top Bottom MD 6,465' 9,052' TVD 6,093' 8,662' 8-1/2" Hole Cmt w/ 807 sks (168 bbls) Class G @ 15.8 ppg, 100% returns. BC -19 Pad 3 1,196' FNL, 1,657' FWL, Sec. 34, TTN, R10W, S.M. SCHEMATIC Contluctor 20" KSS 133 ppf Top Bottom MD 0' 106' TVD 0' 106' Surface Casing 13-3/8" JSS & L-80 68 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509- 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 ppg, Type 1 crrd. 113 sks (50 bbls) cmt to surface Intermediate Casing 95/8" LSO 40 ppf:bbls) Top Botto MD 0' 7,447 TVD 0' 7,057 12-1/4" Hole Cmt%/ 346 sks (f Class G Lead@ 10.5 ppg & w(34 bbls) of Class G Tail @ 15 Production Tubma 3-1/2" LSO 9.3 ppf EUE 8RD Top Bottom MD 0' 4,000' TVD 0' 3,955' 3 Perforations, Zone MD TVD Size SPF Date Sterling B45,515'-5,525' 5,249'-5,258' 2-1/2" 12 6/27/14 UBC -3 6,424'-6,431' 6,054'-6,061' 2-1/2" 6 5108/14 UBC -3 6,435'-6,442' 6,065'5,071' 2-1/2" 6 5/06/14 X ,� I• , I POsi-Snt Plug @ ±5,500' MD Capped w/ 35' of cement PosiSet Plug @ 6,100' MD Capped w/ 10' of cement Set (6/23/14) - ♦- . Plug @ 6,390' MD Capped w/ 40' of cement Tag top @ 6,204' (5/24/14) 1. (Plug moved, cement not set) " U B C-3 IP Directional Data: TD PBTD KOP - 2,800' at 3.5 deg/100' build 9,068' MD 5,465' MD EOB - 4,271', 32.0 deg hole angle 8,678' TVD 5,207' TVD Drop - 5,533'@ 2.0 deg/100' Hold - 7,494', 1 deg hole angle to TD Well Name &Number: Beaver Creek Unit#19 Lease: A-028083 County or Paris h: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 1.2° 1100 k @ 2,800' Angle/Perls: 1° Maximum Deviation: 320 @ 4,397' Date Completed: 70/07/08 Ground Level (above MSL): 161' RKB (above GL): 21' Revised By: Donna Ambruz I Downhole Revision Date: Schematic Revision Date: 1 1/28/2020 Hilcorp _llayka, LLC Permit #: 208-123 API #: 50-133-20579-00-S1 Prop. Des: A - 028083 KB elevation: 182' (21' AGL) Latitude: 600 39' 28.14" N Longitude: 151001'10.61'W X: 317,471.6 (NAD 27) Y: 2,433,991.7 (NAD 27) Spud: 9/14/2008 TD: 10/01/2008 Rig Released: 1/14/09 12:00 bra BC -19 Pad 3 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. Tree cap = 6412" Top of 9-5/8" Casing Cement CBL 4/18/14 @ 3,880' MD 1 Last Tag: Depth: 6,130' SLM Size/Tool: 2.50" Bailer Date: 6125/14 Jewelry Detail 1 -Kill String 100' (12/XX/19) J1i Top of 3-1/2" Cut Tubing @ 6,454' MD Top of 3-1/2" Tubing Cement @ 6,476' MD Plug @ 7,550' MD Capped w/ 35' of cement 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 6,465' 9,052' ND 6,093' 8,662' 8-1/2" Hole Cmt w/ 807 sks (168 bbls) Class G @ 15.8 ppg, 100% returns. SCHEMATIC T rKSS 133 ppfTop Bottom0' 106'0' 106' (RI 13-3/8" J-55 & L-80 68 ppf BTC Top Bottom 5 f'.¢, D 0' 2,510' ND 0' 2,509' 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 ppg, Type 1 cmt . 1J5.sks (50 bbls) cmt to surface j 9-5/8" L-80 40 ppf BTC -Top. Bottom / MD 0' 7,447' ND 0' - 7,057' 12-1/4" Hole Cmt w/ 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppq. w PBTD 5,465' MD 5,207' TVD ' Ulon0Jppf E DOdom5,272' 5,0 845,515'-5,525' 5,249'3,258' 2-112" 12 6/27/14 6,424'-6,431' 6,054-6,061' 2-1/2" 6 5/08/14 6,435'-6,442' 6,066-6,071' 2-1/2" 6 5108114 POSI-Set Plug @ ±5,500' MD Capped w/ 35' of cement Plug @ 6,100' MD w/ 10' of cement kt (6/23114) Plug @ 6,'S90' MD Capped w/ 40'�icement Tag top ( 6,204' (5!24/14) (Plug moved, cement not set) Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 5,533' @ 2.0 deg/100' Well Name &Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: I Alaska Country: USA Angle @KOP and Depth: 1,2° / 100 ft @ 2,800' 1 Angle/Perfs:j 10 Maximum Deviation: 320@4,397' Date Completed: 10/07/08 Ground Level (above MSL): 161' RKB (above GL): 21' Revised By: Donna Am bruz Downhole Revision Date: 6/27120141 Schematic Revision Date: 121612019 Schwartz, Guy L (CED) From: Ted Kramer <tkramer@hilcorp.com> Sent. Tuesday, January 28, 2020 3:12 PM To: Schwartz, Guy L (CED) Cc: Cody Dinger; Donna Ambruz Subject: RE: [EXTERNAL] BCU 19 RWO to swap casing Packoff and run Kill string. Attachments: BCU -19 Schematic 01-28-20.pdf G uy, As requested, here is the updated schematic for BCU # 19. Ted Kramer Sr. Operations Engineer Hilcorp-Alaska LLC Office — 907-777-8420 Cell — 985-867-0665 From: Schwartz, Guy L (CED) [mailto:guy.schwartz@alaska.gov] Sent: Tuesday, January 28, 2020 9:52 AM To: Ted Kramer <tkramer@hilcorp.com> Cc: Cody Dinger <cdinger@hilcorp.com> Subject: RE: [EXTERNAL] BCU 19 RWO to swap casing Packoff and run Kill string. Ted, I would update the schematic to reflect the actual wellbore as it looks today. The CIBP at 4500 ft should be shown also... and actual kill string configuration. This will close out sundry 319-483. Update sketch and send to me by email. Once the well is Sidetracked by rig 169 sundry It 319-559 will close out this wellbore. Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding if, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226) or (Guv.schwariz@aloska gov). From: Ted Kramer <tkramer@hilcorp.com> Sent: Tuesday, January 28, 2020 6:42 AM To: Schwartz, Guy L (CED) <guy.schwartz(@alaska.gov> Cc: Cody Dinger <cdinger@hilcorp.com> Subject: RE: [EXTERNAL] BCU 19 RWO to swap casing Packoff and run Kill string. G uy, I spoke with Ronnie since his report did not make a lot of sense to me either. What is currently in the well is a 3-1/2" tubing screwed into a test packer at 48' (which is set), and 4,000' of 3-1/2" tubing below it for weight/kill string. When Rig 169 gets on the well the first thing they will do after testing their BOP'S is PU on the tubing to release the test packer, circulate the well and POOH with the test packer and kill string. They then can RIH and set their whipstock. This well was a little non-standard because we have two open Sundries due to the fact that we opted to deal with changing out the wellhead on one and Plugging back the well (BCU #19) on the other. In fact, all that work occurred with the same rig up. Looking back on it now, I believe we would have had a cleaner transition had we included it all on one Sundry. However, going into the work, we did not have a clear line of sight as to what the wellhead repair was going to entail. I was half expecting to have to go look for a leak down hole. Let me know what I can do to help clean this up Ted Kramer Sr. Operations Engineer Hilcorp-Alaska LLC Office — 907-777-8420 Cell — 985-867-0665 From: Schwartz, Guy L (CED) [mailto:euy.schwartz analaska gov] Sent: Monday, January 27, 2020 2:48 PM To: Ted Kramer <tkramer@hilcorp.com> Cc: Cody Dinger <cdinaer(@hilcorp.com> Subject: [EXTERNAL] BCU 19 RWO to swap casing Packoff and run Kill string. Can you guys look at the schematic.. from what im reading in the daily report and what is shown there some discrepancy. 1) Is there a CIBP at 4500 ft (as per note on 12/29/19) 2) How long is the kill string and from what I am reading was it even run in the well? Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete if, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226) or (Guy.schwartzCalaska aov). Schwartz, Guy L (CED) From: Schwartz, Guy L (CED) Sent: Tuesday, December 17, 2019 11:33 AM To: Ted Kramer Subject: RE: BCU 19 - BOP Stack Change - PTD# 208-123, Sundry Number 319-483 Ted, You have approval to substitute BOPE stack as requested. Test the new Yellowjacket 13 5/8" BOPE to 4000 psi initially. If you need to retest after 7 days go to the original sundry pressure of 3000 psi. Update the MOC form and forward to the rig as well as the new BOPE schematic. This email should also be printed out and attached to the approved sundry. Regards, Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC, State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226 ) or (Guv.schwartz@alaska clov). From: Ted Kramer <tkramer@hilcorp.com> Sent: Tuesday, December 17, 2019 10:28 AM To: Schwartz, Guy L (CED) <guy.schwartz@alaska.gov> Subject: BCU 19 - BOP Stack Change - PTD# 208-123, Sundry Number 319-483 Guy, It was brought to my attention that we have the incorrect BOP stack in the Sundry of this well. The Sundry shows a 7- 1/16" stack and it should be a 13-5/8" bop stack. Attached is the drawing for the correct BOP. Also please be aware that this will be a brand New 13-5/8" BOP Stack and Annular on this well. Therefore, following what has been done in the past, Hilcorp should be prepared to test to a higher test pressure than what is listed in the Sundry. Please let me know what that test pressure is and we will prepare to meet it. I will also be getting the data book for this stack burned to a CD and brought over to your office. Serial number for this BOP Stack is: A124-8 Serial number for this Annular is: A115-14 Sincerely, Ted Kramer Sr. Operations Engineer Hilcorp-Alaska LLC Office — 907-777-8420 Cell — 985-867-0665 The information contained in this e-mail message is confidential information intended only for the use of the recipient(s) named above. In addition, this communication may be legally privileged. If the reader of this e-mail is not an intended recipient, you have received this e-mail in error and any review, dissemination, distribution or copying is strictly prohibited. If you have received this e-mail in error, please notify the sender immediately by return e-mail and permanently delete the copy you received. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. ,:�C) g,lz YELLOWACKET OILFIELD SERVICES 13-&8" 5M DOUBLE BOP STACK 13-5/8" 5M ISA FORGED ANNULAR 13-518" 5M IWS DOUBLE RAM BOP 2-7/8" TO 5' VBR RAMS IN TOP BORE BLIND RAMS IN BOTTOM BORE L 4-1-16" 5M GATE VALVES 4-1/16" X 2-1/16" DSA ON ENDS TO CO -FLEX TOTAL STACK HEIGHT 101.3 INCHES OPEN AND CLOSE DATA OPEN CLOSE 13-5/8" 5M ANNULAR 17.41 23.58 13-5/8" 5M RAMS PER CAVITY 4.7 5.34 4-1/16" 5M HCR 0.61 0.52 THESTATE ALASKA 1LASKA GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Alaska Oil and Cas Conseiva[ion. Commission Re: Beaver Creek Field, Beluga Gas — Sterling Gas Pools, BCU 19 Permit to Drill Number: 208-123 Sundry Number: 319-559 Dear Mr. York: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov 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, wrri DATED this day of December, 2019. IBDMS�" DEC 19 2019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC �c non FECEIVIED DEC 10 20 9 Gly 1Z 119 (17 A®GCC 1. Type of Request: Abandon ❑ Plug Perforations ❑ `Fracture Stimulate ❑ Repair Well ❑ Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change A 9 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: Hilcorp Alaska, LLC Exploratory ❑ Development 0 • Stratigraphic ❑ Service ❑ 208-123 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20579-00-00 ' 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 237A Will planned perforations require a spacing exception? Yes ❑ No Beaver Creek Unit (BCU) 19 9. Property Designation (Lease Number): 10. Field/Pool(s): FEDA028083 Beaver Creek Field / Beluga Gas - Sterling Gas Pools 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): 9,068' ` 8,678' 5,465' 5,207' 1,772 psi 5,500' 6,454' (3.5" tbg) Casing Length Size MD TVD Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3* / L-80 5,272' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): DLH Hydraulic Packer; N/A 5,245' MD/5,020' TVD; N/A 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development Service ❑ 14. Estimated Date for 15. Well Status after proposed work: A lz y, , . January 15, 2020 _ Commencing Operations: OIL ❑ ❑ WINJ WDSPL ❑ Suspended 1-�'/ GA WAG ❑ GSTOR ElSPLUG EJ 16. Verbal Approval: Date: Commission Representative: /j L't9GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Be York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: tkramer hilcor .com Contact Phone: 777-8420 ' Authorized .Signatu Date: � Pet.2a (�( COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: _� Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ Other j7(- y, (j{-� S f 18Dili1S L55/ DEC 19 2019 Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ No Subsequent Form Required: y APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 1 1 1 q 1241f,.1r1"'e 1X-134 11 Form 10-403 4/2017 proved applicationq r t e date of approval. ' i Submit Form and A / ,=Attachments in Duplicate N Hilcoro Alaska, LLi Repair Wellhead Well: BCU -19 Date:12/6/2019 Well Name: BCU -19 API Number: 50-133-20579-00-00 . Current Status: Shut -In Gas Well Leg: N/A Estimated Start Date: 1/15/2020 Rig: 169 Reg. Approval Recl'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-123 First Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (M) Second Call Engineer: Christina Twogood (907) 777-8443 (0) (907) 378-7323 (M) AFE Number: Current Surface Pressure: 10 psi • (Shut -In) Max. Expected BHP: 2,300 psi @ 5,258' TVD (Based on normal gradient) Max. Potential Surface Pressure: 1,772 psi @ 5,258' TVD (Based on expected BHP and gas gradient to surface) Brief Well Summary Beaver Creek Unit #19 was drilled as a Grass roots EXCAPE monobore completion in 2009 to target gas sands in the lower Beluga formation. The bottom 5 EXCAPE modules were perforated and fracture stimulated and ✓ additional zones were wireline perforated in 2009. The well performance was initially poor and was shut-in shortly after completion. Recently added perforations in July and August of 2013 were unproductive. The well was plugged back and recompleted in the Upper Beluga C-3 in May 2014. However, the Upper Beluga C-3 interval came in wet. This zone was then plugged back and the Sterling B4 perforated in June 2014. - The Sterling B4 IP'd at 750 Mcfd but was short lived and the well was shut in by August 5th 2014. All perforations are currently isolated by a plug set in the X -Nipple at 5,271' set in May 2017 and a Posi-set plug W/35' of cement at 5,500'. The Wellhead is to be repaired under Sundry # 319-483 and a CBL will be ran and a plug will also be performed under that same Sundry. The purpose of this work/sundry is to formally plug the BCU #19. Notes Regarding Wellbore Condition Well has a packoff leak from the IA to the OA. (Note: To be repaired in Sundry # 319-483) All perforations are isolated with an X -plug at 5,271' and a Posi-set plug and 35' of cement @ 5,500'. Procedure: Lfs�`7 /os �d'O 1. MIRU Rig 169 2. NU and Test BOPS accorc mg to Drilling Permit. 3. POOH W/ Kill string. 4. RU E -line and test lubricator to 3,000 psi. 5. PU 9-5/8" CIBP and RIH to 4,500' (+/-). Set same. POOH. 6. Switch to drilling permit to run whip stock. H IIikm, Alaska, LLI Attachments: 1. As -built Schematic 2. Proposed Schematic 3. Procedure Change Form Repair Wellhead Well: BCU -19 Date:12/6/2019 Hiloorp Alaska, LLC Permit #: 208-123 API #: 50-133-20579-00-S1 Prop. Des: A - 028083 KB elevation: 182' (21' AGL) Latitude: 60° 39'28.14" N Longitude: 151001'10.61'W X: 317,471.6 (NAD 27) Y: 2,433,991.7 (NAD 27) Spud: 9/14/2008 TD: 1010112008 Rig Released: 1/14/09 12:00 hrs BC -19 Pad 3 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. Tree cap = 6-112" Otis , Top of 9-6/8" Casing Cement - CBL 4118114 @ 3,880' MD Last Tag: Depth: 6,130' SLM Size/Tool: 2.50" Bailer Date: 6/25114 Jewelry Detail 1 - CIBP 14,500' Top of 3-1/2" Cut Tubing @ 6,454' MD Top of 3-1/2" Tubing Cement @ 6,476' MD Plug @ 7,550' MD Capped w/ 35' of cement .16 PROPOSED SCHEMATIC Surface Casino 13-3/8" J-55 & L-80 68 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 ppg, Type 1 cmt . 113 sks (50 bbls) cmt to surface Intermediate Casino 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447' TVD 0' 7,067- 12-1/4" Hole Cmtw/345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bola) of Class G Tail @ 15.8 ppg. Production Tubing 133ppf rConductor55 Top Bottom 0'106' State/Prov: 0' 106' Surface Casino 13-3/8" J-55 & L-80 68 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 ppg, Type 1 cmt . 113 sks (50 bbls) cmt to surface Intermediate Casino 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447' TVD 0' 7,067- 12-1/4" Hole Cmtw/345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bola) of Class G Tail @ 15.8 ppg. Post -Set Plug @ ±5,600' MD Capped w/ 35' of cement PosiSet Plug @ 6,100' MD CePPed w/ 10' of cement Set (6123114) Y` r Plug @ 6,390' MD Cappetl w/ 40' of cement Tag toP @ 6,204' (5124114) (Plug moved, cement not set) '- JB C-3 Production Tubing (Abandoned) 1 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom TD PBTD MD 6,465' 9,052' TVD 6,093' 8,662' 9,068' MD ±4,500' MD 8-1/2" Hole Cmt w/ 807 sks (168 bbis) 8,678' TVD ±4,383' TVD Class G @ 15.8 ppg, 100% returns. Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 6.533'@ 2.0 deg/1D0' Hold - 7,494', 1 Well Name & Number: Production Tubing Lease: A - 028083 County or Parish: 3-1/2" L-80 9.3 ppf EUE 8RD State/Prov: Top Bottom Angle @KOP and Depth: 1.2° 1100 ft @2,800- Angle/Perfs: 1° Maximum Deviation: 32° @ 4,397' MD 0' 5,272' 10/07/08 Ground Level (above MSL): 161' TVD 0' 5,043' 21' Revised By: Donna Ambruz Downhole Revision Date: 6/2712014 Perforations: 12/9/2019 Zone MD TVD Size SPF Date Steding645,515'-5,525' 5,249'-5,258' 2-1/2" 12 6/27/14 UBC -3 6,424'-6,431' 6,054-6,061' 2-1/2" 6 5/08/14 UBC -3 6,435'-6,442' 6,065'-6,071' 2-1/2" 6 5/08/14 Post -Set Plug @ ±5,600' MD Capped w/ 35' of cement PosiSet Plug @ 6,100' MD CePPed w/ 10' of cement Set (6123114) Y` r Plug @ 6,390' MD Cappetl w/ 40' of cement Tag toP @ 6,204' (5124114) (Plug moved, cement not set) '- JB C-3 Production Tubing (Abandoned) 1 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom TD PBTD MD 6,465' 9,052' TVD 6,093' 8,662' 9,068' MD ±4,500' MD 8-1/2" Hole Cmt w/ 807 sks (168 bbis) 8,678' TVD ±4,383' TVD Class G @ 15.8 ppg, 100% returns. Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 6.533'@ 2.0 deg/1D0' Hold - 7,494', 1 Well Name & Number: Beaver Creek Unit #19 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 1.2° 1100 ft @2,800- Angle/Perfs: 1° Maximum Deviation: 32° @ 4,397' Date Completed: 10/07/08 Ground Level (above MSL): 161' RKB (above GL): 21' Revised By: Donna Ambruz Downhole Revision Date: 6/2712014 Schematic Revision Date: 12/9/2019 ff HilcorP Alaska, LLC Permit #: 208-123 API #: 50-133-20579-00-S1 Prop. Des: A - 028083 KB elevation: 182' (21' AGL) Latitude: 600 39'28.14" N Longitude: 1510 01' 10.61'W X: 317,471.6 (NAD 27) Y: 2,433,991.7 (NAD 27) Spud: 9/14/2008 TD: 10/0112008 Rig Released:. 1114109 12:00 hrs BC -19 Pad 3 1,196' FNL, 1,657' FWL, Sec. 34, WN, R10W, S.M. Tree cap = 6-1/2" Otis Top of 9-5/8" Casing Cement ' CBL 4/18114 @ 3,880' MD Last Tao: Depth: 6,130' SLM Size/Tool: 2.50" Bailer Date: 6125114 Jewelry Detail 1 - Kill String 100' (12/XX/19) Top of 3-1/2" Cut Tubing @ 6,454' MD Top of 3.1/2" Tubing Cement @ 6,476' MD Plug @ 7,550' MD Capped w/ 35' of cement Production Tubing IAbandonedl 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 6,466' 9,052' TVD 6,093' 8,662' 8-1/2" Hole Cmt w/ 807 sks (168 bbls) Class G @ 15.8 ppg, 100% returns. j33Jt " SCHEMATIC Surface Casing 133/8" 355 & L-80 66 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (364 bbls) of 12.0 ppg, Type 1 cmt . 113 sks (50 bbls) cmt to surface Intermediate Casino 95/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447' TVD 0' 7,057' 12-1/4" Hole Cmt w/ 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppg. -55 133 ppf r20" Top Bottom 0'106' Top Bottom 0' 106' Surface Casing 133/8" 355 & L-80 66 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (364 bbls) of 12.0 ppg, Type 1 cmt . 113 sks (50 bbls) cmt to surface Intermediate Casino 95/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447' TVD 0' 7,057' 12-1/4" Hole Cmt w/ 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppg. U13 C-3 TD PBTD 9,068' MD 5,465' MD 8,678' TVD 5,207' TVD PosiSet Plug @ ±5,500' MD Capped w/ 35' of cement PosiSet Plug @ 6,100' MD Capped w/ 10' of cement Set (6/23/14) Plug @ 6,390' MD Capped w/ 40' of cement Tag top @ 6,204' (5/24114) (Plug moved, cement not set) Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 5,533'Q 2.0 deg/100' Hold - 7,4 - Well Name & Number: Production Tubing Lease: A - 028083 3-1/2" L-80 9.3 ppf EUE8RD Kenai Peninsula Borough Top Bottom Alaska Country: USA MD 0' 5,272' 1.2° 1100 ft @ 2,800' 1 Angle/Perfs: 1° Maximum Deviation: TVD 0' 5,043' Date Completed: 10/07/08 1 Ground Level (above MSL): Perforations: RKB (above GL): 21' Zone MD TVD Size SPF Date Sterling 845,515'-5,525' 5,249-5,258' 2-1/2" 12 6/27114 UBC -3 6,424'-6,431' 6,054'5,061' 2-1/2" 6 5/08/14 UBC -3 6,435'-6,442' 6,065'5,071' 2-1/2" 6 5/08/14 U13 C-3 TD PBTD 9,068' MD 5,465' MD 8,678' TVD 5,207' TVD PosiSet Plug @ ±5,500' MD Capped w/ 35' of cement PosiSet Plug @ 6,100' MD Capped w/ 10' of cement Set (6/23/14) Plug @ 6,390' MD Capped w/ 40' of cement Tag top @ 6,204' (5/24114) (Plug moved, cement not set) Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 5,533'Q 2.0 deg/100' Hold - 7,4 - Well Name & Number: Beaver Creek Unit #19 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 1.2° 1100 ft @ 2,800' 1 Angle/Perfs: 1° Maximum Deviation: 32° @ 4,397' Date Completed: 10/07/08 1 Ground Level (above MSL): 161' RKB (above GL): 21' Revised By: Donna Ambruz I Downhole Revision Date: 612712014T Schematic Revision Date: 6 /2112 01 7 Sundry Application Plug for Re -drill Wells Work Flow This process is used to identify wells that are suspended for a very short time prior to being re - drilled. Those wells that are not re -drilled immediately are identified every 6 months and assigned a current status of "Suspended." Task Res onsible initial reviewer will check to ensure that the "Plug for Redrill" box Geologist p'j7 e upper lei corner of Form 10-403 is checked. If the "Abandon" or /�� pend" boxes are also checked, cross out that erroneous entry and l it on both copies of the Form 10-403 (AOGCC's and operator'ss). 71fthe "Abandon" box is checked in Box 15 (Well Status after proposed Geologist ) the initial reviewer will cross out that erroneous entry and initial then both copies of the Form 10-403 (AOGCC's and operator's copies). d, check the"Suspended" box and initial that change. Drilling rilling enginders will serve as quality control for steps 1 and 2. Engineer (QC) the Stat Tech receives a Form 10-403 with a check in the "Plug Stat Tech drill" box, they will enter the Typ_Work code "IPBRD" into the y tab for the well in RBDMS. This code automatically generates ment in the well history that states "Intent: Plug for Redrill." F4When the Stat Tech receives any Form 10-407, they will check the Stat Tech y tab in RBDMS for the "Intent: Plug for Redrill" code (IPBRD). ent and there is no evidence that a subsequent re -drill has beenLETED, the Stat Tech will assign a status of SUSPENDED to ll bore in RBDMS no matter what status is listed on the 10-407. at Tech will also change the status on the 10-407 form to NDED, and date and initial this change. If the Stat Tech does not see the "Intent: Plug for Redrill" comment or code, they will enter the status listed on the Form 10-407 into RBDMS. 5 When the Form 10-407 for the redrill is received, the Stat Tech will Stat Tech change the original well's status from SUSPENDED to ABANDONED. 6 The first week of every January and July, the Stat Tech and one of the Stat Tech Geologists will check the "Well by Type Work Outstanding" user query Geologist in RBDMS to ensure that all of the Plug for Redrill wells have been handled properly. At this same time, they will also review the list of suspended wells for accuracy. HHilcorp Alaska, LLC Hilcorp Alaska, LLC Changes to Approved Rig Work Over Sundry Procedure Subject: Changes to Approved Sundry Procedure for Well BCU -19 (PTD 208-123) Sundry #: XXX -XXX Any modifications to an approved sundry will be documented and approved below. Changes to an approved sundry will be communicated to the AOGCC by the rig workover (RWO) "first calf' engineer. AOGCC written approval of the change is required before implementing the change. Sec Page Date Procedure Change New 403 Required? YIN HAK Prepared By Initials HAK Approved By Initials AOGCC Written Approval Received (Person and Date) Approval: Asset Team Operations Manager Date Prepared: First Call Operations Engineer Date THE STATE ofj 1. ,V1�1Z GOVERNOR MIKE DUNLEAVY Bo York Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission Re: Beaver Creek Field, Beluga Gas and Sterling Gas Pools, BCU 19 Permit to Drill Number: 208-123 Sundry Number: 319-483 Dear Mr. York: 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Www. aog cc. a las ka. g ov 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, 1 LIQ— J y . Price Chair DATED this fvday of October, 2019. RBMIt'OCT 302019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS on AAr os San RECO IED OCT 2 2 2019 AOGCC 1. Type of Request: Abandon ❑ Plug Pedorations ❑ Fracture Stimulate ❑ Repair Well Q Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ i ewer - 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: 5-t-- Hilcorp Alaska, LLC Exploratory ❑ Development ❑✓ Stratigraphic ❑ Service ❑ 208-123 ' 3. Address: 3800 Centerpoint Dr, Suite 1400 6. API Number: Anchorage Alaska 99503 50-133-20579-00-00 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? CO 237A Will planned perforations require a spacing exception? Yes ❑ No ❑� Beaver Creek Unit (BCU) 19 9. Property Designation (Lease Number): 10. Field/Pool(s): FEDA028083 Beaver Creek Field / Beluga Gas - Sterling Gas Pools 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): 9,068' 8,678' 9,016' 8,626' 1,772 psi 5,500' 6,454'(3.5" tbg) Casing Length Size MD TVD Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447P 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3# / L-80 5,272' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): DLH Hydraulic Packer; N/A 5,245' MD/5,020' TVD; N/A 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratignaphic ❑ Development 2 Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: January 1, 2020 OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS Q WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Bo York 777-8345 Contact Name: Ted Kramer Authorized Title: Operations Manager Contact Email: Wramer hilCor .com Contact Phone: 777-8420 Authorized Signature: Date: COMMISSION USE ONLY Conditions of approval: Notify Commission that a representative may witness Sundry Number: ,ssoo, Plug Integrity ❑ BOP Test L4J MeechaniclaI tote rity Test ❑ Location Clearance ❑ Other: t 3000 /.05- B tc�5 RBDMS OCT 3 0 2019 Post Initial Injection MIT Req'd? Yes No ^/ Spacing Exception Required? Yes El No Lam" Subsequent Form Required: APPROVED BY' O Approved by: COMMISSIONER THE GvllJt 14 COMMISSISI ON Date: I lO 'oto' /Q t �� L is / D /1 � Submit Form and For 4 4/201 A roved application is valitl f 1 n �,,k/p o approval. Ali Submit in Duplicate ' d��n%' N Mlrn Alaska, M Repair Wellhead Well: BCU -19 Date:10/21/2019 Well Name: BCU -19 API Number: 50-133-20579-00-00 Current Status: Shut -In Gas Well Leg: N/A Estimated Start Date: 1/1/2020 Rig: 401 Reg. Approval Req'd? Yes Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-123 First Call Engineer: Ted Kramer (907) 777-8420 (0) (985) 867-0665 (M) Second Call Engineer: Christina Twogood (907) 777-8443 (0) (907) 378-7323 (M) AFE Number: Current Surface Pressure: Max. Expected BHP: Max. Potential Surface Pressure: Brief Well Summary 10 psi 2,300 psi @ 5,258' TVD 1,772 psi @ 5,258' TVD (Shut -In) (Based on normal gradient) (Based on expected BHP and gas gradient to surface) Beaver Creek Unit #19 was drilled as a Grass roots EXCAPE monobore completion in 2009 to target gas sands in the lower Beluga formation. The bottom 5 EXCAPE modules were perforated and fracture stimulated and additional zones were wireline perforated in 2009. The well performance was initially poor and was shut-in shortly after completion. Recently added perforations in July and August of 2013 were unproductive. The well was plugged back and recompleted in the Upper Beluga C-3 in May 2014. However, the Upper Beluga C-3 interval came in wet. This zone was then plugged back and the Sterling B4 perforated in June 2014. The Sterling B4 IP'd at 750 Mcfd but was short lived and the well was shut in by August 5th 2014. All perforations are currently isolated by a plug set in the X -Nipple at 5,271' set in May 2017 and a Posi-set plug W/35' of cement at 5,500'. The purpose of this work/sundry is to repair the wellhead, Run a CBL and prepare the well to be sidetracked in early 2020. Notes Regarding Wellbore Condition • Well has a packoff leak from thlA to the OA. • All perforations are isolated with a X -plug at 5,271' and a Posi-set plug and 35' of cement @ 5,500'. Procedure: 1. RU SL and Pull X -plug @ 5,271'. 2. MIRURig401. 3. Notify AOGCC and BLM 24 hours in advance of BOP test to extend the opportunity to witness. a. Set Back pressure valve. b. ND wellhead, NU BOP and test to 250 psi low & 3,000 psi high, annular to 250 psi low & 2,500 psi high. Record accumulator pre -charge pressures and chart tests. c. Test VBRrams oR2-3/$�%testjoint. d. Submit completed form 10-424 to AOGCC within 5 days of BOPE test. Copy to BLM. 4. Circulate well with brine to remove any gas. ( P i ,- CA) �sza2�> Hilcorp Alaska, LLC Permit* 208-123 API #: 50-133-20579-00-51 Prop. Des: A - 028083 KB elevation: 182' (21' AGL) Latitude: 600 39'28.14" N Longitude: 151001'10.61'W X: 317,471.6 (NAD 27) Y: 2,433,991.7 (NAD 27) Spud: 911412008 TD: 10/01/2008 Rig Released: 1/14109 12:00 hrs BC -19 Pad 3 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. 133 * 251t,6 Tree wp = 6-112" Otis f Top of 9-518" Casing Cement CBL 4/1BJ14 @ 3,880' MD Annulus filled with Nitrogen (Currently bled to 500 psi) Packer/Casing test to 2,000 psi Last Tao: Depth: 6,130' SLM Size/Tool: 2.50" Bailer Date: 6/25/14 Completion Assembly (ran 4/21/14) Includes: 1 - Gaslift Mandrel, 1,413' MD (dummy valve) 2 - Chem Inj Mandrel, 1,807' MD (inj valve) 60 bands attached to control line 3 - Gaslift Mandrel, 2,799' MD (dummy valve) 4 - Gaslift Mandrel, 4,015' MD (dummy valve) 5 - Gaslift Mandrel, 5,202' MD (dummy valve) 05-28-17 6 - Hydraulic Packer, 5,245' MD (50k shear) 7 - X -Profile, 5,262' MD 8 - X -Nipple, 5,271' MD - Set Plug 05-28-17 9 - WLEG, 5,272' MD Top of 3-1/2" Cut Tubing @ 6,454' MD Top of 3-112" Tubing Cement @ 6,476' MD Plug @ 7,550' MD Capped w/ 35' of cement 5-. 3-112" L-80 9.3 ppf EUE 8RD Top Bottom MD 6,465' 9,052' TVD 6,093' 8,662' 8-1/2" Hole Cmt w/ 807 sks (168 bbls) Class G @ 15.8 ppg, 100% returns. SCHEMATIC n Bot ppf Bottom106' 106' 1 Surface Casino 13-3/8" J-55 & L-80 68 ppf BTC 2 Top Bottom ' MD 0' 2,510' TVD 0' 2,509' LIL3('Z�1 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 3 ppg, Type 1 cmt. b 113 sks (50 bbls) cmt to surface 4 -t Intermediate Casino 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447- 5 TVD 0' 7,057' 12-114" Hole Cmt w/ 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppg. POGFSet Plug Ca ped W/ 5'ofc meD nt r > r Po51-Set Plug @ 6,100' MD Capped w/ 10' of cement Set (6/23114) UB C-3 -7'Yq 7 r TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Plug @ 6,390' MD Capped w/ 40' of cement Tag top @ 6,204' (5124/14) (Plug moved, cement not set) Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 5,533' @ 2.0 deg/100' ',F Qld. 7,494'.,1 deg holm le to TD Well Name & Number: Beaver Creek Unit #19 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: AlaskaCountry: Production Tubino Angle @KOP and Depth: 1.2° 1100 ft @ 2,800' Angle/Perts: 1° Maximum Deviation: 4,397' Date Completed: r! !., .� - 7 8 9 �' - ^j 21' 3-1/2" L-80 9.3 ppf EUE Top Bottom MD 0' 5,272' TVD 0' 5,043' 8RD Downhole Revision Date: 6/27/2014 Schematic Revision Date: 6/2112017 Perforations: Zone MD TVD Size SPF Date Sterling 845,515'-5,525' 5,249'-5,258' 2-1/2" 12 6127/14 UBC -3 6,424'-6,431' 6,054'-6,061' 2-1/2" 6 5108/14 UB C3 6,435'- 6,442' 6,066-6.071' 2-112" 6 5108114 B4 POGFSet Plug Ca ped W/ 5'ofc meD nt r > r Po51-Set Plug @ 6,100' MD Capped w/ 10' of cement Set (6/23114) UB C-3 -7'Yq 7 r TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Plug @ 6,390' MD Capped w/ 40' of cement Tag top @ 6,204' (5124/14) (Plug moved, cement not set) Directional Data: KOP - 2,800' at 3.5 deg/100' build EOB - 4,271', 32.0 deg hole angle Drop - 5,533' @ 2.0 deg/100' ',F Qld. 7,494'.,1 deg holm le to TD Well Name & Number: Beaver Creek Unit #19 Lease: A - 028083 County or Parish: Kenai Peninsula Borough State/Prov: AlaskaCountry: USA Angle @KOP and Depth: 1.2° 1100 ft @ 2,800' Angle/Perts: 1° Maximum Deviation: 4,397' Date Completed: 10/07/08 Ground Level (above MSL): 161' RKB (above GL): 21' Revised By: Donna Ambruz Downhole Revision Date: 6/27/2014 Schematic Revision Date: 6/2112017 Repair Wellhead Well: BCU -19 Hilcorp Alaska, LL Date: 10/21/2019 5. Bleed all pressure from 13-3/8" X 9-5/8" annulus. 6. PU on tubing to release Hydraulic Packer (50K shear). 7. PU, POOH W/ Tubing racking back laying down all GLM's and capillary line. U4.- 8. RU E -line. Run CBL from PBTD (5,465') up to 2,510'. POOH and RD E -line. 9. RIH W/ Tubing and Test packer. Set Pkr @ 300'. Pressure test 9-5/8" casing to 2,500psi for 30 min. on chart. POOH with test packer. 10. Change out wellhead packoff. 11. RIH With kill string. 'f_ u 12. ND BOP. NU Well head and pressure test tree. 13. RDMO Rig 401. Attachments: 1. As -built Schemati �, 2. BOP Schematic 3. Forward Fluid Flow 4. Wellhead Diagram S. Procedure Change Form ;2 / ( §§ LLJ : �! �0 :/ \: %] �\ � j 0R: <-,X `)§! a \ 2 w9 9\ \ ` /| \] ( ) �, } ) \ @/\§» C=) r°�(®° °9 § ! ))(t �« ! ! rQ t+ }k°�(° k (q# $© $© $© ) .6 § /$ƒ/!; e o e a ( )\ ( # � 7 � )� � ! C, ƒ ( � | ff Hilmrr A4rri.a, LII; Beaver Creek BC #19 -Current 09/14/2019 Beaver Creek Tubing hanger, Vetco Gray BC #19 M B-196, 13 5/8 5M x 3 Y: IBT 13 3/8 x 9 5/8 x 3 1/2 susp x 3.725 MCA lift w/ 3" CIW Type H BPV profile,''/. npt control line exit Tree cap, Otis, 3 1/8 SM FE X 6 Y Otis Quick Union Valve, Swab, WKM-M, 31/85M FE, HWO, EEtrim AV Valve, Master, WKM-M, 31/85M FE, HWO, EEtrim d Valve, Master, WKM-M, 31/85M FE, HWO, EE trim Valve, wing, WKM-M, 3 1/85M FE, HWO, 1 EE trim Adapter, Vetco, 13 5/8 SM FE X 3 1/8 5M stdd top, prepped f/ 6 Y/ hanger neck Multibowl, Vetco MB -196, 13 5/8 3M stdd bottom X 13 5/8 5M FE top, w/ 2- 21/16 SM SSO Void test failed Packoff bad Starting head, Vetco MB -196, 13 5/8 3M X 13 3/8 VG -Loc A bottom, w/ 2- 2" LPO 11 20" 3/8" Valve, VG -200, 2 1/165M FE, HWO, AA trim rA U a -t- U Ra i a v d a L O N N mL U U c m E L E O C U C (D a) E — m 3 a a _E -`o d c t- � O N "O (D >a o m CL av m m c M.0 � N C m m m L C U M d L rL- U 0 a '� a) a m o c ao m 3 -Oc U mU a)0 O c m m U � O � C m m El a1 N `m rn R c R s N C O N `m CL E m 2 d N ❑ L �d(D i N ❑ a) U � c U > O �QN 0 ¢ Q aa. a) y s CL a CL c Q d N Y R TR S m . d c a M Cl. a 7 Z d s� Z� m m c R L U L 7 L al V O a` ,d. R ❑ d m R IL d El a1 N `m rn R c R s N C O N `m CL E m 2 d N ❑ L 0 image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. c:Q08 - 1 (: ).., - Z Well History File Identifier Organizing (done) ❑ Two -sided III IEI1II11I 11111 ❑ Rescan Needed III I RESCAN DIGITAL DATA OVERSIZED (Scannable) o r Items: ❑ Diskettes, No. Ma ❑ Maps: P Gre scale Items: y ❑Other, No/Type: ❑Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: AM Date: 1447) I /s/ ail' Project Proofing III UhJllhIIII 11111 BY: Date: • /s/ u iii Scanning Preparation (p x 30 = • 0 + 1 ((2 = TOTAL PAGES j qt! (Count does not include cover sheet) , BY: Date: • /s/ Production Scanning III 11111 III I ll III Stage 1 Page Count from Scanned File: _ iq 7 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: 14-/C9 11 1 /s/ VYI F Sta 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ f Scanning is complete at this point unless rescanning is required. III VIII IIIl I I III ReScanned 111 1 1111111 BY: Maria Date: ' /s/ Comments about this file: Quality Checked III 11111111111111 10/6/2005 Well History File Cover Page.doc c L 717,,,- „- ' 7, ' n' e�,\\ ii/7/ \ 1 ' SThi.T,E, 1 __,._ 1 . � NV i / / 333 Wesi Seen+;, Pvcnue --''''''';',... ---;__;;"---7,41, ( O - .`;__ , l_” Anchorage Aga �.a� h;<:\ci! '-r1 \� � � t" (. 5 c. 995`3' 3572 $/ ‘ietiro 907 X79 SCANNED MAY 1 6 203 Stan Porhola O Operations Engineer ji211.: Alaska LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Beaver Creek Field, Undefined Gas Pool, Beaver Creek Unit#19 Sundry Number: 314-309 Dear Mr. Porhola: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, e),2— - Daniel T. Seamount, Jr. Commissioner DATED this )day of May, 2014. Encl. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION MMI ) 3 2014 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 AOGGC 1.Type of Request: Abandon❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend❑ Plug Perforations 0 • Perforate E • Pull Tubing ❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing E Other. ❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number. Exploratory ❑ Development 0 . 208-123 • 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service El • 6.API Number: Anchorage,Alaska 99503 50-133-20579-00 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 237.002 Beaver Creek Unit(BCU)#19 ' Will planned perforations require a spacing exception? Yes ❑ No 0 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 ' Beaver Creek/Undefined Gas Pool(Upper Beluga) 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 9,068' • 8,678' • 9,016' 8,626' 7,515' 6,454'(3.5"Tbg) Casing Length Size MD TVD Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 5,272' Packers and SSSV Type: DLH Hydraulic Packer;N/A Packers and SSSV MD(ft)and TVD(ft): 5,245'MD/5,020'ND;N/A 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development 0 Service ❑ 14.Estimated Date for 15.Well Status after proposed work: CommencingOperations: 05/12/14 J Oil ❑ Gas 0 WDSPL ❑ Suspended 0 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporhola@hilcorp.com Printed Name �-SSttaan Porhola Title Operations Engineer Signature _I ✓ `� Phone 907-777-8412 Date 0 7//y COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: "Ski-L- 3dck Plug Integrity ❑ BOP Test LI Mechanical Integrity Test ❑ Location Clearance ❑ Other: RBDMS-MAY 16 2014 Spacing Exception Required? Yes ❑ No Irl Subsequent Form Required: / 0_LIC; i APPROVED BY r/577,- -- Approved by: sr /� COMMISSIONER THE COMMISSSION Date: Spp� eY p/� s� Submit Form and Form 10-403(Revised 10/2012) A roved a li t`a1Jtd o `; from the date of a OViL Attachments in Duplicate ♦ Well Prognosis . Well: BCU-19 Hilcorp Alaska,LL) Date:5/09/2014 Well Name: ' BCU-19 API Number: 50-133-20579-00 Current Status: Shut-In Gas Well Leg: N/A Estimated Start Date: May 12th, 2014 Rig: Moncla 405 Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-123 First Call Engineer: Stan Porhola (907)777-8412 (0) (907) 331-8228(M) Second Call Engineer: Chad Helgeson (907) 777-8405 (0) (907) 229-4824(M) AFE Number: Current Bottom Hole Pressure: —2,537 psi @ 6,054' TVD (Based on SITP and Fluid Level) Maximum Expected BHP: —2,537 psi @ 6,054' TVD (Based on SITP and Fluid Level) Max. Allowable Surface Pressure: — 1,932 psi (Based on actual reservoir conditions and gas gradient to surface (0.10psi/ft) Brief Well Summary Beaver Creek Unit#19 was drilled as a Grass roots EXCAPE monobore completion in 2009 to target gas sands in the lower Beluga formation. The bottom 5 EXCAPE modules were perforated and fracture stimulated and additional zones were wireline perforated in 2009.The well performance was initially poor and was shut-in shortly after completion. Recently added perforations in July and August of 2013 were unproductive.The well was plugged back and recompleted in the Upper Beluga C-3 in May 2014. However,the Upper Beluga C-3 interval came in wet. The purpose of this work/sundry is to plugback the Upper Beluga C-3 and recomplete in the Upper Beluga C-1. Notes Regarding Wellbore Condition • Last tag at 6,464' ELM on 5/08/14 w/a 2.50" Hollow Carrier Perf Gun. E-line Procedure: 1. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. a. Tree connection is 6-1/2" OTIS. b. SITP will be 50 to 100 psi. 2. RU 2.125" NeoWideRange TTBP, RIH and set thru-tubing bridge plug at 6,405' MD in the 9-5/8" 40#. 3. RU 2.5" bailer,dump bail 15'of cement on tubing plug(48 gallons of cement)to achieve a cement top at 6,390'. 4. Wait on cement 12 hours. 5. RIH w/2.5"GR and tag cement at+/-6,390'. 6. RU 2.5" 6 spf SLB PowerJet Nova (will use 2 each 8'guns). 7. RIH and perforate Upper Beluga C-1 interval from 6,308'-6,316' (2 runs,total of 12 spf). c. Bleed tubing pressure to 100 psi before perforating. d. Proposed perfs shown on the proposed schematic in red font. e. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. f. Correlate using SLB RST Log dated 4/08/14(Tie-in log depth is 6,308'-6,316'). g. Use Gamma/CCL/to correlate. h. Record tubing pressures before and after each perforating run. i. Distance to nearest well open in same sands=None. Well Prognosis �s. �) t2; r+� Well: BCU-19 Moan)Alaska,LL z'J fr Date:5/09/2014 j. No Spacing allowance required, no wells closer than 1,320'. 8. RD E-line. 9. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic . IIBC-19 ACTUAL • Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC ililcorp Alaska.LL( Sec. 34, T7N, R10W, S.M. 1 Permit#: 208-123 Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf Prop.Des: A-028083 Ji. ;ti , Top BottomKB elevation: 182' (21'AGL) MD o' 106' Latitude: 60°39'28.14"N TVD 0' 106' Longitude: 151°01'10.61'W • 1 1 11 Surface Casing X: 317,471.6 (NAD 27) 13-3/8" J-55&L-80 68 ppf BTC Y: 2,433,991.7 (NAD 27) 2 Top Bottom Spud: 9/14/2008 MD o' 2,510' TD: 10/01/2008 Rig Released: 1/14/09 12:00 hrs ND o' 2,509' 16"Hole Cmt w/869 sks(384 bbls)of 12.0 PA#: 891008868A 3 irre ppg,Type 1 cmt. 113 sks(50 bbls)cmt to surface Intermediate Casing -: Tree cap=6-1/2"Otis 4 6 9-5/8" L-80 40 ppf BTC ,, Top Bottom ' MD 0' 7,447' I i ND 0' 7,057' Top of 9-5/8" Casing Cement 5 "1' '. CBL 4/18/14 @ 3,880'MDQ 12-1/4"Hole Cmt w/345 sks(204 bbls)of �'y Class G Lead @ 10.5 ppg&w/160 sks ' I I I (34 bbls)of Class G Tail @ 15.8 ppg. 6 4 - Production Tubing ,1 3-1/2" L-80 9.3 ppf EUE 8RD 7 Top Bottom MD 0' 5,272' 1 8 TVD 0' 5,043' +yti Last Tag: ,' Perforations: Depth:6,464'ELM -k' Zone MD TVD Size SPF Date Size/Tool:2.50"Perf Guns UB C-3 6,424'-6,431' 6,054'-6,061' 2-1/2" 6 5/08/14 UB C-3 6,435'-6,442' 6,065'-6,071' 2-1/2" 6 5/08/14 Date:5/08/14 r 1. Completion Assembly(ran 4/21/141 ' i Includes: ' 1 -Gaslift Mandrel,1,413'MD ,a 2-Chemical Injection Mandrel,1,807'MD 3-Gaslift Mandrel,2,799'MD P 4-Gaslift Mandrel,4,015'MD 5-Gaslift Mandrel,5,194'MD 6-Hydraulic Packer,5,245'MD 7-X-Profile,5,2632 MD 8-WLEG,5,272'MD , Top of 3-1/2"Cut Tubing @ 6,454'MD Top of 3-1/2"Tubing Cement - @ 6,476'MD UBC 3 Capped ww/36'of cement ( 11 �I Production Tubing(Abandoned) I 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom Directional Data: MD 6,465' 6,052' TD PBTD KOP-2,800'at 3.5 deg/100'build TVD 6,093' 8,662' 9,068'MD 9,016'MD EOB-4,271',32.0 deg hole angle 8-1/2"Hole Cmt w/807 sks(168 bbls) 8,678'TVD 8,626'TVD Drop-5,533'@ 2.0 deg/100' Class G @ 15.8 ppg,100%returns. Hold- 7,494',1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska _ Country: USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' Angle/Perfs: 1° Maximum Deviation: 32° . 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 5/8/2014 Schematic Revision Date: 5/9/2014 14I - • BC-19 PROPOSED - Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC 1llilco►•I►Alaska, 1.IA; Sec. 34, T7N, R10W, S.M. Permit#: 208-123 Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) 11 _" MD o' los' ND 0' 106' Latitude: 60°39'28.14"N i - Longitude: 151°01'10.61'W ( 14 Surface Casing X: 317,471.6 (NAD 27) $ 13-3/8" J-55&L-80 68 ppf BTC Y: 2,433,991.7 (NAD 27) 2 Top Bottom Spud: 9/14/2008 3 MD o' 2,510' o " ND 0' 2,509' TD: 10/01/2008 1 Rig Released: 1/14/09 12:00 hrs i 16"Hole Cmt w/869 sks(384 bbls)of 12.0 PA#: 891008868A 3 `ppg113 Type 1 cmt. 113 sks(50 bbls)cmt to surface I Intermediate Casinq Tree cap=6-1/2"Otis "gyp 4 1 A 9-5/8" L-80 40 ppf BTC Top Bottom In j MD 0' 7,447' Top of 9-5/8" Casing Cement `y 5 1=1iND 0' 7,057' 12-1/4"Hole Cmt w/345 sks(204 bbls)of CBL 4/18/14 @ 3,880'MD f' Ifl 4 Class G Lead @ 10.5 ppg&w/160 sks (34 bbls)of Class G Tail @ 15.8 ppg. 6 ir' _ f7 - ' Production Tubing ►7 1 ,; 3-1/2" L-80 9.3 ppf EUE 8RD *► 7 ) 1 Top Bottom yI °` MD ND 0' 0' 5,272' f _ 5,043' ` " 8 f ,ii . Last Tag: Perforations: Depth:6,464'ELM ,+ Zone MD ND Size SPF Date Size/Tool:2.50"Perf Guns dg , UB C-1 6,308'-6,316' 5,946'-5,954' 2-1/2" 12 Proposed UB C-3 6,424'-6,431' 6,054'-6,061' 2-1/2" 6 5/08/14 Date: 5/08/14 UB C-3 6,435'-6,442' 6,065'-6,071' 2-1/2" 6 5/08/14 Completion Assembly (ran 4/21/14) s Includes: 1 -Gaslift Mandrel,1,413'MD 2-Chemical Injection Mandrel,1,807'MD • 3-Gaslift Mandrel,2,799'MD 4-Gaslift Mandrel,4,015'MD 5-Gaslift Mandrel,5,194'MD 6-Hydraulic Packer,5,245'MD k , 7-X-Profile,5,2632 MD P . 8-WLEG,5,272'MD ;v ,i Top of 3-1/2"Cut Tubing f., UB C-1 @ 6,454'MD 'D^ _ Plug @ 6,405'MD iliti Capped WI 15'of cement Top of 3-1/2"Tubing Cement @ 6,476'MD UB C-3 Plug @ 7,560'MD II Capped w/35'of cement Th417---"""H :...' Production Tubing(Abandoned) I 3-1/2" L-80 9.3 ppf EUE 8RD Directional Data: Top Bottom TD PBTD KOP-2,800'at 3.5 deg/100'build MD 6,465' 9,052' TVD 6,093' 8,662' 9,068'MD 9,016'MD EOB-4,271',32.0 deg hole angle 8-1/2"Hole Cmt w/807 sks(168 bbls) 8,678'TVD 8,626'TVD Drop-5,533'@ 2.0 deg/100' Class G @ 15.8 ppg,100%returns. Hold- 7,494', 1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country:! USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' Angle/Perls: 1° Maximum Deviation: 32°@ 4,397' Date Completed: 10/07/08 Ground Level(above MSL). 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: Proposed Schematic Revision Date: 5/9/2014 - STATE OF ALASKA r 1EDRECE AL-, A OIL AND GAS CONSERVATION COMM. .ON REPORT OF SUNDRY WELL OPERATIONS MAY 0 8 2014 .,,t., 5-.15 ly 1.Operations Abandon U Repair Well U�/ /0 Plug Perforations L Perforate L Other OG CC Performed: Alter Casing ❑ Pull Tubing l Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development 0 Exploratory ❑ 208-123 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 50-133-20579-00 • 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028083 Beaver Creek Unit(BCU)19 • 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Beaver Creek/Beluga Gas Pool 11.Present Well Condition Summary: Total Depth measured 9,068 feet Plugs measured N/A feet true vertical 8,678 feet Junk measured N/A feet Effective Depth measured 9,016 feet Packer measured N/A feet true vertical 8,626 feet true vertical N/A feet Casing Length Size MD ND Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic SCANNED MAY 2 9 2014 True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 5,272'MD 5,043'ND Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 400 570 Subsequent to operation: 0 0 0 400 29 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development E • Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas 0 • WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: . -p-s-.t s•fit 5iti-(7L Contact Stan Porhola Email sporhola( hilcorp.com Printed Name Stan Porhola Title Operations Engineer Signature �., -dU v"",. Phone 907-777-8412 Date l 0 /y ./3-7/V RBCM AY 14 213 ' Form 10-404 Revised 10/2012i/� j f�� Submit Original Only s/ Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 4/2/14 5/8/14 Daily Operations: 04/02/2014-Wednesday MIRU Pollard Slickline. Rig up. PT Lubricator 250/3,000 psi. RIHw/2.75" GR to 7,600' SLM. POOH RIH w/AD-2 stop and set at 7,550' SLM. RIH w/packoff and set at 7,547' SLM. RIH and set A-stop at 7,546'SLM. Bled well to 0 psi. RIHw/2.50" x 20' dump bailer. Make 4 runs. Dump a total of 16 gallons of cement. Rig down. 04/03/2014-Thursday Rig spotted on well. Continue to spot equipment and rig up. 1,600 psi on well. Bleed off well. Oil tubing rigging up on BCU 06. BOP and flow lines installed. Pressure bled off BOJ 19. Test tubing/cement job to 2k Good test. Rig down test equipment. Set BPV. Nipple down tree. Nipple up BOP. Begin BOP pressure test. Moncla pressure pump out of service. Using production high pressure pump. Witness waived by Jim Regg,AOG I and Justin Miller, BLM. 250 psi low- 3,000 psi high. 04/04/2014- Friday Hook up Koomey. All systems working. Rig up wireline. RIH Punch holes at 6,460'. POOH. Attempt to reverse circulate. 17.8 bls to fill annulus. Annulus pressured up to 750 psi. Reload perf gun. RIH Punch holes at 6,444'. POOH. Attempt to reverse circ. No communication. 7S0 psi on annulus. Reload gun. Pickup gun,gamma ray and ccl. RIH. Log from 6,600'to 6,000'. Send log to engineer for correlation. Shoot at 6,434' 04/05/2014-Saturday Hilcorp Alaska, LLC ,. . Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 4/2/14 5/8/14 Pressure annulus to 700 psi. Bleed off. Pressure tubing to 2,000 psi. Bleed off. rb communication. Rig up jet cutter. RIH Cut tubing at 6,434'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Pressure casing to 1,000 psi. Bleed off with H,rdril closed around lubricator, open blind rams. Pressure tubing to 750 psi through kill line. Reading 750 psi on gauge in lubricator. Flow path correct. Bleed off. (Lose blind ram. Pressure tubing to 2,500 psi. No communication. Bleed off. RIH. Cut tubing at 6,414'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Pressure casing to 1,000 psi. Bleed off with H/dril closed around lubricator, open blind rams. Pressure tubing to 750 psi through kill line. Reading 750 psi on gauge in lubricator. Flow path correct. Bleed off. Close blind ram. Pressure tubing to 2k psi. No comm. Bleed off. RIH. Cut tubing at 6,384'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Pressure casing to 1,000 psi. Bleed off with Hydril closed around lubricator, open blind rams. Pressure tubing to 750 psi through kill line. Reading 750 psi on gauge in lubricator. Flow path correct. Bleed off. dose blind ram. Pressure tubing to 2k psi. No comm. Bleed off. Evaluate plan forward. RIH. Punch tubing at 6,354'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Pressure casing to 1,000 psi. Bleed off with H,rdril closed around lubricator, open blind rams. Pressure tubing to 750 psi through kill line. Reading 750 psi on gauge in lubricator. Flow path correct. Bleed off. Close blind ram. Pressure tubing to 2k psi. No comm. Bleed off. RIH. Punch tubing at 6,264'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Pressure casing to 1,000 psi. Bleed off with Hydril closed around lubricator, open blind rams. Pressure tubing to 750 psi through kill line. Reading 750 psi on gauge in lubricator. Flow path correct. Bleed off. Close blind ram. Pressure tubing to 2k psi. No comm. Bleed off. RIH. Punch tubing at 6,084'. POOH. Tool in lubricator. Close blind rams. Pressure down casing taking returns through choke line. Bypass choke on manifold. Hole reverse circulating 1 bpm 800 psi. Pumped 10 bls. Shut down pump. Rig up jet cutter. RIH Cut tubing at 6,084'. Pull wireline up into lubricator. dose blind rams. Open well for circulating tubing. Shut well in. Rig down wireline. Reverse circulate hole. Initial pump rate of 1 bpm w/800-1000 psi. After btms up (53 bls) pressure began falling off. Reversed hole at 3 bpm w/0 psi. Pickup tubing spear for 3-1/2". RIH. Latch packoff. Packoff hung up in stack. Worked free. POOH and lay down. Released spear from packoff. RIH and latch 3-1/2"tubing below hanger. Picktubing. Hanger and pipe free. 65k up wt. Pull hanger and lay down same. Well u-tubing. Rig up to circulate. I-ble stable. Prepare to POOH. 04/06/2014-Sunday POOH w/3-1/2" tubing, 2 control lines, braided cable and removing rigid centralizers from each joint. Braided cable is not coming out of hole. It appears to still be connected at the bottom of the hole. Cable secured. Continue to pull tubing. Cable parted w/52 stands out. +/-5' left on surface. Found cable wrapped around pipe at 65 stands out. 1-13cIto pull 10k over to move pipe. Cable parted somewhere downhole. Continue to POOH. 04/07/2014- Monday 89 stands out. 97 in derrick Laid down 1 single and cut joint. Rig down Weatherford. Measure cable. 1,275' out of hole. +/- 4,800' left in hole. Stand by awaiting fishing tools. Male up rope spear, x-overs and 3-1/2" pup joint. RIH Tag up at 5' out on stand 35+/- 2,193'. POOH with 3k drag. 24 stands in hole started gaining weight. Lost overpull at+/- 10kover. Continue OOH. OOH with rope spear. 270' of 1/2" braided wirewire recovered. RIH Continue to fish cable. At 0600, 696' of 1/2" braided wire recovered at a total depth of 2,631'. 04/08/2014-Tuesday f Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 4/2/14 5/8/14 Continue to fish 1/2" braided wire. Recovered 300+' of wire. Total recovered +/- 1000'. +/-400' remaining in hole. Total depth 2,944'. Continue to fish. Spear out. 145' of wire recovered. Total recovered +/- 1,150'. Total depth 3,069'. RIHN/rope spear. 314' of wire recovered. Total recovered +11,500'. 3,440'total depth. RIHw/rope spear. OOH. 345' of wire recovered. Total depth 3,689'. Total recovered +/-,1845'. OOH 366' feet of wire recovered. Total depth 3,997'. +/- 2,200' recovered. RIH w/spear. POOH w/fish. 4/9/2014-Wednesday POOH w/fish. Spear at surface. 390' of wire recovered. +/-4,300'total depth. +/-2,600' of wire remaining in hole. RI-iv/rope spear. OOH with spear. Remove wire from spear. Measure wire. 352' of wire recovered. +/-3,142' of wire recovered. Total depth 4,622'. RIH w/rope spear. Tag,work down 10 jts. POOH S/B recover 210 ft. +/-3,352' recovered total. I-bld JSA discuss tonights tasks. Reload spear. RIH to tag at 4,700'. Work down to 5,038'. POOH. S/B recover 276' wire,total wire recovered +/- 3,628'. Reload spear. RIHto tag @ 5,002'. Work down to 5,340'. POOH. S/B recover 291' of cable,total cable recovered +/- 3,919'. 4/10/2014-Thursday Hold JSA, discuss todays tasks. RIH with spear and tag at 5,310'. Workdown to 5,650'. Recover 310 ft of cable total recovered 4,229'. RIH with spear and tag at 5,500'. Workdown to 5,837'. Recover 350' of cable,total recovered cable 4,579'. Shift change hold JSA discuss todays tasks. Reload spear and get ready to RIHto 5,750'. Tag up work down to 5,995'. Recover 244' of cable, total cable recovered 4,823'. Approximatley 220' of cable left in hole. Reload spear and RIHto tag @ 5,995'. Work down to top of fish @ 6,084'. POOH. Recover 124' of cable total recovery is 4,947' of cable. Notify AOGCC of weekly BOPE test. Witness waived by Jim Regg. 4/11/2014- Friday Hold JSA, discuss todays tasks. Laydown spear and fishing tools. Prep for BOPE test. Cut and slip drill line test Koomey. BOPE test. Test all valves to 250psi low/3,000psi high. I-bld for 5 mins and chart. MIRU slicWine. Make 4 runs with wire grab to tag at 6,121' SLM. Recover 1 band. RlHwith 6.86" OD junk basket. Tag at 6,121' SLM. Recover 0 bands. RlHwith 6.79" OD LIB to tag at 6,1,21' SLM. POOH. Almost no markings on face of LIB other than minor scratches. RlHwith special gauge ring to tag at 6,121'. POOH No markings on tool, no brass pins bent. RIH with 6.79" OD LIB to tag at 6,121'. Beat down hard. POOH See imprint of what maybe bands, no imprint of top of fish. RlHwith 3" bailer tag 6,121'. Operate bailer. POOH No fill in bailer. RDMO slicWine. P/U reverse circulating junk basket on tubing . BHA is 1 reverse junk basket OD 5.50", ID 2.25", L= 3.91'. 1 X-over w/OD 6.625", ID 2.938" L=3.4'. X-over OD 6.25", ID 2.25", L= 2.63'. Bumper sub OD 4.688", ID 2.25", L= 10.41'. Oil jar OD 4.75", ID 2.25", L= 12.58'. 4-3/4" DRILL COLLARS OD 4.75", ID 2.375", L= 124.43'. X-over OD 4.688", ID 2.25" L= 1.93 total length of Biq is 169.39'. 4/12/2014-Saturday Hold JSA, discuss todays job. P/U power swivel and try to locate stiff arm. Wash down to top of fish. R/D power swivel. POOH S/B 3.50", 9.3ppf 8rd tubing 4 ea 4-3/4" drill collars, oil jars, bumper sub and reverse junkbasket. Recovered 0 bands. MIRU slickline. RIH with 5.79" LIB. Tag at 6,121' SLM. POOH Get good imprint of fish. RDMO slicWine. P/U BHA= 2-7/8" tubing spear, 6-5/16" spear stop,X-over,4-3/4" bumper sub,4-3/4" oil jar,4 ea 4-3/4" drill collars,4-3/4" intensifier,X-over. Shift change hold JSA. RIH and engage fish at 6,073'. Tubing tally. Start pulling and jarring. Rig would not pull over 100kclutch bad. Make repairs. Repairs made. Start walking our weights up to jar at 115k pull at 130k. Rig would not pull more than 130k Make repairs. Work our way weights up jarring at 130k pulling to 150k. 4/13/2014-Sunday I , Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 4/2/14 5/8/14 Shift change, hold JSA. Jarring and working pipe, setting off jars at 130k pulling to 160k. Making hole at a slow rate, about 22' since shift change. Stop 2 times to circulate and cool off jars. Shift change. I-bld JSA, discuss tonights tasks. Work pipe and jar. Get pipe to moving w/lots of drag, 30 kover. POOH. L/D 4 jts, drag down to 15k. Start S/B. POOH. S/B 3.50" L80 EUE 8RD tubing, 184 jts and 4 ea D/Cs. L/D jars and fish. Fish equals 1 cut jt, 12" in length, 9 full jts,and 1 cut jt, 17.60'total of 299.20'. MIRU. Slickline run 5.96" G/R,tag at 6,125'. SLM POOH RIH 8.0" LIB. Tag 6,125' SLM POOH 4/14/2014- Monday Hold JSA, discuss todays duties. RIH w/3.0" bailer. Tag at 6,408' SLM. Get sample of mud and fluid. POOH RIH w/2.50" LIB. Tag 6,181' SLM. Show imprint of bands/cap string. POOH RDMO slickline. Make up rope spear, run in hole on tubing to tag at 6,084'. Shift change, hold JSA. P/U power swivel and start washing down. Grculate at 3 bpm. Good returns. Wash down to 6,195' tubing measurement. Getting a lot of torque on tubing and quit making hole. Hang P/S swivel in derrick. POOH. S/B 196 jts recover spear with bands, control lines,and cable wrapped up. Clean up spear, hard to get accurate measurement on feet recovered. Had to cut off spear estimate 100' of cable and 200' of control lines and probably 100 bands. RlHwith Rope spear and 196 jts 3-1/2"tubing. 4/15/2014-Tuesday Hold JSA, shift change. Discuss todays activities. Tag top of cable at 6,200'. P/U P/S and start washing down to 6,306'. R/D P/S and circulate 3bpm while washing. POOR S/B 202 jts 3.50"tubing and rope spear. Recover 50' of cable and 100' of control line. Clean off spear, prep to RIH. RIH with rope spear and 202 jts tubing. Tag 6,306'. Workdown 3 jts to top of fish at 6,373'. Shift change, hold JSA. L/D 1 jt. POOH w/S/B. 04/16/2014-Wednesday POOH, S/B 200 jts, L/D BHA, no fish, no marks on spear. P/U rope spear. RIH,tag at 6,373',work spear in pipe with P/S pipe torquing up. POOH, S/B 204 jts tubing. L/D rope spear, recover no cable or control lines. MIRU Polllard slicbne. RIH with 8.0" OD imp block tag at 6,464' SLM. POOH,find "L" shape impression in block. Gathered BHA together, 1 cable shoe, 3 jts wash pipe,1 XO, 1 bumper jar, 1 oil jar, 4-3/4" DCs,XO. RIH, BHA and 196 jts 3.50"tubing. P/U power swivel. 04/17/2014-Thursday Make up spool and stripper head, replace wash pipe and packing on power swivel. Break circulation at 6,353', drill,go down,tag 6,373'. Start washing down over fish, wash down 6,453', hit cement. Reverse circulate,get barite and metal fragments in returns. Reverse circulate 465 bbls F/W all the way around,get barite and some metal shavings and rubber in returns, well clean. ND swivel and stripper head. POOH, L/D 4jts,S/B 196 jts 3.50"tbg,4 D/Cs, lay down 3 jts wash pipe and shoe. 04/18/2014- Friday Remove 31' fish from wash pipe also control cable and lines. MIRU Pollard slicltine. RIH with 8" LIB and tag 6,404' SLM. POOH and have impression of cable on block RDMO slickline. MIRU Priority Eine. RIH with CCL gamma and CBL logs, log from 6,400' up to 5,000'. POOH, RDMO eline. Test BOPE3000 high - 250 low, hold all valves for 5 mins. Witness waived by Lou Grimaldi, AOGC. M/U BHA= 1 milling guide,overshot bowl, overshot ext, overshot top sub,XO, bumper jar, oil jar,4-4-3/4" drill collars, intensifier jar, and over shot. RIH with BHA 201 jts tbg, engage fish at 6,406'TBM, could not latch. R/U P/S dress off top of fish,torquing up cable. Dress off top of fish, latch on, pull 75k, not coming. Start P/U more weight pin pill out of collar at 1st jt. Wait on XO for overshot. M/U overshot. RIH, engage fish latch on jar, on pipe pull 85k pipe free. POOH, S/B. 04/19/2014-Saturday Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 4/2/14 5/8/14 Finish POOH, LD jars and fish. Fish 20' with cable and control lines attached. Brealdown overshot and slip drill line. MIRU priority eline, run 8.125" gauge ring,gamma ray, and CLL down to tag at 6,436' ELM. Log out of hole to 5,000' ELM. RDMO priority Eline. P/U bit and scraper. RIH to tag at 6,438'TBM. Grculate in 520 bbls 6%clean well. Test casing to 2,000 psi for 30 mins and chart. POOH, L/D tbg. 04/20/2014-Sunday LID workstring and BHA, 203 jts total,4 D/Cs,jars, bit, and scraper. Prepare to run completion. Tally pipe, swap out pacler, spring broke that holds slips. P/U and run completion string, 162 jts 3.50" 9.3 ppf BJE 8rd tubing,4 GLM, 1 chemical inj mandrel,1 DLH hyd. set packer, 50k shear, 1 xnipple. EOT @ 5,272.30',xnipple @ 5,261.51', pacler @ 5,245.48', GLM#4 @ 5,194.48', GLM#3 @ 4,015.22', GLM #2 @ 2,798.56', GM @ 1,807.02', GLM#1 @ 1,413.02', pacler set with 6K down . 1,800' control line banded with 60 bands in hole. Set BPV, start N/D BOP. 04/21/2014- Monday N/D BOP N/U PROD TREE. Move to BCU-06. 04/23/2014-Wednesday Move unit from BCU-06. PT lubricator to 250 low/3,000 high -test OK. RIHand pull RHBC plug prong. Change out GLV#4 w/ orifice. Change out dummy in chemical injection mandrel and set live valve. RIHand pull RHBC plug body. RIH w/2.5" x 20' dummy gun to 6,447' SLM. Rig down. 04/26/2014-Saturday Rig up Baker Combi Unit. PT lines to 250 low/2,500 high -test OK. Pump 328,000 scf of NZ and displaced 360 bbls of 6% KO. Pressure up wellhead to 1,000 psi. Rig down. 05/07/2014-Wednesday Obtained permit and RU Schlumberger E line. Decision to postpone perforating due to difficulties plugging BC6. RD Schlumberger. 05/08/2014-Thursday RU Schlumberger E-line. MU BOP's and lubricator to wellhead. PT lubricator. Troubleshoot leafing connections, bad o-rings, and bad hose on PT pump. PT to 500 psi low/3,000 psi high. Good test. MU 7' of 2.5" Powerjet Nbva guns 6 SPF 60 deg phasing. RIH w/guns and set down @ 6,430'. Log up pass. RIHand set down @ 6,430',WT and fell through. Tag again @ 6,464'. Log up pass, stuck @ 6,434' and pulled 900#over and pulled free. Continue up pass. Send correlation log to town for verification. RIHand able to push junk to 6,432'. Get on depth and confirm correlation. Wait on SCADA issues. Perforate Upper Beluga C-3 (6,424'-6,431') w/2.5" Powerjet Nova 6 SPF 60 deg phasing. SITP: 578 psi. Positive indication of guns firing. POOFI no overpull. Built 5 psi initially, 45 psi in 5 min, 135 psi in 15 min, and 220 psi in 30 min. OOH LD spent gun. All shots fired, gun swollen. MU 7' of 2.5" Powerjet Nova guns 6 SPF 60 deg phasing. RIH w/guns and saw fluid level @ 2,960'. Continue RIH and set down @ 6,431'. WT and would not pass- no overpull. Log correlation pass. RIH and set down again @ 6,431'. WT several times and fell through. Set down @ 6,440'. Pick up with no overpull and get on depth. Discuss situation with office and get approval to perforate. Perforate Upper Beluga C-3 (6,435'-6,442') w/2.5" Powerjet Nbva 6 SPF 60 deg phasing. SITP: 990 psi. Positive indication of guns firing. POOH, no overpull. Well pressure slowly declining. OOH LD spent gun. All shots fired,gun swollen. RD Schlumberger E line. ACTUAL Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC i ii Ili[corp Alaska.LL(; BC-19 Sec. 34, T7N, R10W, S.M. Permit#: 208-123 Conductor API#: 50-133-20579-00-51 [k 20" K-55 133 ppf Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) MD 0' 106' ND 0' 106' Latitude: 60°39'28.14"N Longitude: 151°01'10.61'W • 1 IM i Surface Casing X: 317,471.6 (NAD 27) SI 13-3/8" J-55&L-80 68 ppf BTC Y: 2,433,991.7 (NAD 27) 2 f� Top Bottom Spud: 9/14/2008 MD 0' 2,510' TD: 10/01/2008 ND 0' 2,509' Rig Released: 1114/09 12:00 hrs 16"Hole Cmt w/869 sks(384 bbls)of 12.0 PA#: 891008868A 3 IMIT ppg,Type 1 cmt. I 113 sks(50 bbls)cmt to surface Intermediate Casing Tree cap=6-1/2"Otis 4 ®R s 9-5/8" L-80 40 ppf BTC Top Bottom MD 0' 7,447' Top of 9-5/8" Casing Cement 5 II_T .' TVD o' 7,057' CBL 4/18/14 @ 3,880'MD '; 12-1/4"Hole Cmt w/345 sks(204 bbls)of Class G Lead @ 10.5 ppg&w/160 sks 3 E 31 (34 bbls)of Class G Tail @ 15.8 ppg. •6I i Production Tubing 3-1/2" L-80 9.3 ppf EUE 8RD 7 Top Bottom , MD 0' 5,272' 8 TVD 0' 5,043' Last Tag: • Perforations: Depth:6,464'ELM Zone MD TVD Size SPF Date Size/Tool:2.50"Perf Guns UB C-3 6,424'-6,431' 6,054'-6,061' 2-1/2" 6 5/08/14 Date: 5/08/14 UB C-3 6,435'-6,442' 6,065-6,071' 2-1/2" 6 5/08/14 I Completion Assembly (ran 4/21/14) Includes: 1 -Gaslift Mandrel,1,413'MD • 2-Chemical Injection Mandrel,1,807'MD 3-Gaslift Mandrel,2,799'MD 4-Gaslift Mandrel,4,015'MD . 5-Gaslift Mandrel,5,194'MD 6-Hydraulic Packer,5,245'MD i 7-X-Profile,5,2632 MD ' 8-WLEG,5,272'MD Top of 3-1/2"Cut Tubing @ 6,454'MD Top of 3-1/2"Tubing Cement ►- @ 6,476'MD UB C-3 Pled @ 7,550'MD y�::-ftt 1 / rit4aW- �/ ^S f;)I C Capped w/35''of cement "'" Production Tubing(Abandoned) 'I t 3-1/2" L-80 9.3 ppf EUE 8RD Directional Data: Top Bottom TD PBTD KOP-2,800'at 3.5 deg/100'build MD 6,465' 9,052' TVD 6,093' 8,662' 9,068'MD 9,016' MD EOB-4,271',32.0 deg hole angle 8-1/2"Hole Cmt w/807 sks(168 bbls) 8,678'TVD 8,626'TVD Drop-5,533'@ 2.0 deg/100' Class G @ 15.8 ppg,100%returns. Hold- 7,494', 1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' Angle/Perfs: 1° Maximum Deviation: 32°@ 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 5/8/2014 Schematic Revision Date: 5/9/2014 THE STATE Kaska. 7,,c. Gas 4v a 1' �J �! L_,L; �! \L 333 Wesi Seventh Avenue (.GOVERNOR SEAN PARNFL1. Anchorage, Alaska9950 -3572 Mein. 907.279.1433 o JUL 2 2 2014 Stan Porhola Operations Engineer Hilcorp Alaska, LLC f.)►3 3800 Centerpoint Drive, Suite 100 �O Anchorage, AK 99503 Re: Beaver Creek Field, Undefined Gas Pool, BCU 19 Sundry Number: 314-172 Dear Mr. Porhola: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Daniel T. Seamount, Jr. Commissioner DATED this sday of March, 2014. Encl. (cCf- R °, :ice, ]��/ STATE OF ALASKA p ` ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1., `''- 20 MC 25.280 ' �� 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑✓ ' Repair Well Li Change Approved Program ❑ Suspend ❑ Plug Perforations Q . Perforate Q • Pull Tubing Q lime Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other: _ ❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5. Permit to DriN Number Exploratory ❑ Development ❑✓ . 208-123 • 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service 1116.API Number. Anchorage,Alaska 99503 50-133-20579-00 • 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? 20 AAC 25.055(a)(4) Beaver Creek Unit(BCU)#19 • Will planned perforations require a spacing exception? Yes ❑ No ❑✓ 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 Beaver Creek/Undefined Gas Pool(Upper Beluga) • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 9,068' . 8,678' ' 9,016' 8,626' N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi , 3,090 psi Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 9,052' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(ft)and ND(ft): N/A;N/A 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program U BOP Sketch U Exploratory U Stratigraphic U Development U ' Service Lf 14.Estimated Date for 15.Well Status after proposed work: 03/25/14 Commencing Operations: Oil Li Gas ❑� ' WDSPL ❑ Suspended Li 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporhola@hilcorp.com Printed Name Stan Porhola/ Title Operations Engineer (� Signature t/ 771_- G U✓t/�. Phone 907-777-8412 Date 34b N - COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .6 4—\—I2 Plug Integrity ❑ BOP Test lEr Mechanical Integrity Test ❑ Location Clearance ❑ Other: .it 3 coo to S L Sof TZS( RBDMW MAY 11. 2014 ,� A x n� l4cnii..�•�- c`' P�,,`� ,pt r Zo ,4/I C 2 ,57 //L L�) I I m. 6� f°v f'6 r w�-r r, e:./� 44--re/'o JL.. Sio 2 c--c ha 6 r S e,✓.. � Infer � n /� P Spacing Exception Required? Yes [j No in Subsequent Form Required: /.j— ay APPROVED BY ( I (� Approved by: /1 ^COMMISSIOANER THE COMMISSION Date: 3 ) 1 T D 1 1 —� A� 4-- 3. •I`i Submit Form and Form 10-403(Revised 10/2012) ApprO d C ti I f nths f the date of approval. � 1 Attachments in Duplicate// • REQ / Hilcorp Alaska, LLC Post Office Box 244027 i'vliSirr 1 S / Anchorage,AK 99524-4027 �� YG� 3800 Centerpoint Drive Suite 100 Anchorage,AK 99503 Phone: 907/777-8412 March 18, 2014 Fax: 907/777-8301 Alaska Oil and Gas Conservation Commission 333 W.7th Ave., Ste. 100 Anchorage,Alaska 99501 Re: Beaver Creek Field BCU 19 (PTD 208-123) Variance Request for Plug Setting Depth during Plugback Operations Dear Commissioner: This letter is to make a request for a variance to the requirements of 20 AAC 25.112(c)(1)(E) that requires a bridge plug to be set within 50' of perforations during abandonment. This request is to allow the setting of a plug within 197' of the top of the perforations. We will place a plug above the top of 2 un-perforated EXCAPE modules that are located 171' above the top perforation. The desire is to isolate the un-perforated EXCAPE modules along with the LB-19 and LB-20 perforated intervals with a single plug. The lower most intervals are already isolated with a plug at 7,890'. A minimum of ✓ 35' of cement will be placed on top of the plug and packer with a dump bailer and test with a tag and pressure test to 2,000 psi. Please do not hesitate to contact me should you have any questions or need additional information. Sincerely, HILCORP ALASKA, LLC Stan Porhola Operations Engineer stp 10-403 Form Well Prognosis Actual Schematic Proposed Schematic BOPE Schematic cc: Chad Helgeson . - II Well Prognosis Well: BCU-19 Iiilcorp Alaska,LLi Date:3/17/2014 _Well Name: BCU-19 API Number: 50-133-20579-00 Current Status: Shut-In Gas Well Leg: N/A Estimated Start Date: March 25th, 2014 _ Rig: Moncla 405 Reg.Approval Req'd? 403 _ Date Reg.Approval Rec'vd: _ Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: _ 208-123 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405(0) (907) 229-4824(M) AFE Number: Current Bottom Hole Pressure: —3,421 psi @ 8,300'ND (Static survey July 2009 below bottom zone 8,690' MD) Maximum Expected BHP: —3,421 psi @ 8,300'ND (Static survey July 2009 below bottom zone 8,690' MD) Max. Allowable Surface Pressure: —2,591 psi / (Based on actual reservoir conditions and gas gradient to surface (0.10psi/ft) Brief Well Summary Beaver Creek Unit#19 was drilled as a Grass roots EXCAPE monobore completion in 2009 to target gas sands in the lower Beluga formation. The bottom 5 EXCAPE modules were perforated and fracture stimulated and additional zones were wireline perforated in 2009.The well performance was initially poor and was shut-in shortly after completion. Recently added perforations in July and August of 2013 were unproductive. The purpose of this work/sundry is to plugback the 3-1/2" monobore and recomplete in the 9-5/8" casing. Notes Regarding Wellbore Condition ..T. C946,r. fit �e N mow- f.reeks t Pare- 441 a ,Fcw 40•Weal 11cF/19 , i� ,FY�f/ • Last tag at 7,867' SLM on 7/13/13 w/a 1.75" Drivedown Bailer. Slickline Procedure: 1. MIRU Slickline, PT Lubricator to 3,000 psi Hi 250 Low. 2. RU 2.70"gauge ring, RIH and tag fill/obstruction at+/-7,867'. 3. RU tubing stop/plug for 3-1/2"tubing, RIH and set at+/-7,550'. Bleed off tubing pressure. 4. Dump bail 35'of cement on tubing plug(13 gallons of cement). 5. Wait on cement for 12 hours. 6. RU 2.50" bailer and tag top of cement. .gyp .p -}-t, ZcYa, e-5.1- /c-4--1.-. , 3a••:... 7. RD Slickline. WO Rig Procedure: 8. MIRU Moncla#405 WO Rig. 9. Set BPV. ND Tree. 10. NU BOPE. Set BPV.Test to 250 psi Low/3,000 psi High,annular to 250 psi Low/1,500 psi High (hold each valve and test for 10-min). Record accumulator pre-charge pressures and chart tests. a. Notify AOGCC 24 hrs in advance of BOP test. b. Notify BLM 48 hrs in advance of BOP test. 11. Bleed any pressure off tubing. Pull BPV. 12. MU landing joint and ifittlE1045irtemierre9efectritfirviNg19 on tubing hanger. L. Kwt` �rro ...1J 1Sf 11 Well Prognosis Well: BCU-19 Hilcorp Alaska,LL Date:3/17/2014 13. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. a. BOPE connection is 13-5/8" studded top for lubricator on top of annular. 14. RU 1-11/16" 6'tubing punch. 15. RIH and punch tubing at+/-6,465'-6,471' MD. POOH. 16. RU to reverse circulate out the drilling mud in the 3-1/2"x9-5/8"annulus with lease water. a. Mud weight is 9.6+ppg.Spacer is 10.6 ppg(40 bbl). b. Estimated volume is 415 bbl. 17. RU 3.5"Tubing Jet Cutter. 18. RIH and jet cut tubing at+/-6,465 MD. a. Have backup cutters on location if tubing does not part. b. Plan 2"d jet cut if control lines do not part. c. Make cut above Cement top at 6,470'. 19. RD Eline. 20. SOOH and rack back 3-1/2"tubing. a. Tubing has rigid centralizers, 2 per joint. Utilize open-faced tubing tongs. b. Rigid centralizers secured with hex-screws. Do not drop on top of annular. c. No plans to re-use the 3 recovered control lines.Secured to tubing with bands. d. Expect to find a 3/8" braided line cable on the outside of the tubing. 21. MU flat-bottom BHA w/casing scraper and RIH on 3-1/2"tubing out of derrick. 22. Tag cut tubing at+/-6,465' MD. 23. Circulate well clean w/filterd 6%KCI (8.6 ppg). 24. Test casing to 2,000 psi for 30 min and chart. ✓ 6'14. 25. POOH. Rack back 3-1/2"tubing. LD BHA and casing scraper. 26. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. a. BOPE connection is 13-5/8" studded top for lubricator on top of annular. 27. RU Cement Bond Log tools. RIH to PBTD and log to 4,800'. POOH. 28. RU Neutron Log tools. RIH to PBTD and log to 4,800'. POOH. 29. RD Eline. 30. PU completion w/WLEG,X-profile, Hydraulic Packer,and Chemical Injection Mandrel. 31. RIH w/3-1/2"tubing and set packer at+/-6,200'.Test casing/packer to 2,000 psi for 30 min. 32. Set BPV. ND BOPE. NU tree. Pull BPV. 33. RD Moncla#405 WO Rig. 34. Turn well over to production. 35. Replace IA x OA pressure gauge if removed (9-5/8"x 13-3/8"). Slickline Procedure: 36. MIRU Slickline, PT Lubricator to 3,000 psi Hi 250 Low. 37. RIH and pull prong from RHBC plug. POOH. 38. RIH and pull dummy valve from lower gaslift mandrel. POOH. 39. RIH and pull dummy valve from the chemical injection mandrel. POOH. 40. RIH and set live valve in chemical injection mandrel. POOH. 41. RIH and set pocket protector in the lower gaslift mandrel. POOH. 42. RIH and pull RHBC plug body from X-profile. POOH. 43. RIH w/2.5"x20'dummy gun and tag PBTD. POOH. Nitrogen Procedure: 1. MIRU Nitrogen Pumping Unit. RU flowback tank w/gas buster. 2. RU lines to annulus valve. PT Lines to 2,500 psi Hi 250 Low. Well Prognosis Well: BCU-19 Hilcorp Alaska,LLI Date:3/17/2014 3. Pump Nitrogen down the casing and displace 6%KCI thru the lower gaslift mandrel and up the tubing into flowback tank. a. Estimated volume of displaced 6%KCI is 455 bbl. b. Leave 2,000 psi Nitrogen pressure on the tubing. 4. Rig down Nitrogen Pumping Unit. E-line Procedure: 5. MIRU E-line, PT Lubricator to 3,000 psi Hi 250 Low. a. Tree connection is 6.5"OTIS. 6. RU 2.50" 6 spf HC wireline guns(will use 2 each 20'guns for 12 spf shot density). 7. Bleed tubing pressure down to below 2,000 psi,as directed by Reservoir Engineer. 8. RIH and perforate the Upper Beluga C-3 from 6,422'-6,453' (2 runs,total of 12 spf) a. Proposed perfs shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Correlate using proposed Neutron log. (Tie-in log depth is pending). d. Record tubing pressures before and after each perforating run. 9. RD E-line. 10. Turn well over to production. Attachments: 1. Actual Schematic 2. Proposed Schematic 3. BOPE Schematic BC-19 ACTUAL Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC llilco►•,►Alaska,LLC Sec. 34, T7N, R10W, S.M. Permit#: 208-1230Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) MD 0' 106' TVD 0' 106' Latitude: 60°39'28.14"N Longitude: 151°01'10.61'W X: 317,471.6 (NAD 27) Surface Casing Y: 2,433,991.7 (NAD 27) 13-3/8" J-55&L-80 68 ppf BTC Spud: 9/14/2008 iTop Bottom TD: 10/01/2008 •; MD 0' 2,510' Rig Released: 1/14/09 12:00 hrs t. • TVD 0' 2,509' PA#: 891008868A 16"Hole Cmt w/869 sks(384 bbls)of 12.0 • ppg,Type 1 cmt. ` +*r ,; s�=. 113 sks( 50 bbls)cmt to surface ir-` I ,r: 1.. Tree cap=6-1/2"Otis y; ..,t Intermediate Casing _, S" 9-5/8" L-80 40 ppf Butt r' Top Bottom MD 0' 7,447' Top of 9-5/8" Casing Cement TVD 0' 7,057' est.@ 6,470'MD 'r 12-1/4"Hole Cmt w/345 sks(204 bbls)of Class G Lead @ 10.5 ppg&w/160 sks (34 bbls)of Class G Tail @ 15.8 ppg. =1 LB-19 Top of 3-1/2"Tubing Cement i= Production Tubing @ 6,470'MD _;� 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom == ! LB-20 MD 0' 9,052' -� TVD 0' 8,662' 8-1/2"Hole Cmt w/807 sks(168 bbls) Class G @ 15.8 ppg,100%returns. Tagged fill @ 7,859'KB(8/22/13) 0 " V''')- w/2.25"Drive Down Bailer , lie , _ • II LB-21 Excape System Details • • - 7 Excape modules placed LB-23 -Red contol line fires modules 5-7 'y -Green control line fires Modules 1-4 Plug @ 7,890'MD Uj LB-25 Capped w/5'of cement ' Lower Beluga Perfs MD(RKB): LB-27 Gun MD Date � I LB-17 Module 7 = 7,576'-7,586' • (future) LB-19 Module 6 = 7,710'-7,720' • (future) Excape System Details 1 LB 28 LB-19 2-1/8"12spf = 7,747'-7,767' - (8/15/13) Module 1 -no flapper UI LB-20 2-1/8" 6sfp = 7,782'-7,790' . (8/15/13) Module 2-7 -Disappearing I ? LB-20 2-3/8" 6spf = 7,784'-7,794' • (9/10/09) flappers ]J) LB-29 LB-20 2-3/8" 6spf = 7,818'-7,828' - (9/22/09) Flappers MD(RKB): ' ) LB-20 2-1/2" 6spf = 7,828'-7,830' (7/07/13) Module 7 = 7,596' i" LB-20 2-3/8" 6spf = 7,830'-7,840' • (9/22/09) Module 6 = 7,730' ) LB-3o LB-20 2-1/2" 6spf = 7,840'-7,850' - (7/07/13) Module 5 = 7,920' LB-21 Module 5 = 7,900'-7,910' ' (4/5/09) Module 4 = 8,193' R'. LB-23 2-3/8" 6spf = 7,988'-8,016' - (9/22/09) Module 3 = 8,478' r*1 , LB-25 Module 4 = 8,173'-8,183' • (4/5/09) Module 2 = 8,560' 1u, LB-27 2-3/8" 4spf = 8,370'-8,376' - (6/3/09) Module 1 = NA Lyti r LB-28 2-3/8" 4spf = 8,410'-8,420' • (6/3/09) . LB-28 Module 3 = 8,458'-8,468' • (4/5/09) Directional Data: LB-29 Module 2 = 8,540'-8,550' - (4/3/09) KOP-2,800'at 3.5 deg/100'build TD PBTD LB-30 Module 1 = 8,667'-8,677' - (4/1/09) EOB-4,271',32.0 deg hole angle 9,068'MD 9,016'MD Drop-5,533'@ 2.0 deg/100' 8,678'TVD 8,626'TVD Hold- 7,494', 1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' Angle/Perfs:I 1° Maximum Deviation: 32°@ 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 8/22/2013 Schematic Revision Date: 10/2/2013 BC-19 PROPOSED • Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC ii demi)Alaska..1.1.0 Sec. 34, T7N, R10W, S.M. Permit#: 208-123 Conductor API#: 50-133-20579-00-S120" K-55 133 ppf Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) MD o' tos' TVD 0' 106' Latitude: 60°39'28.14"N • Longitude: 151°01'10.61'W 1 l!i Surface Casing X: 317,471.6 (NAD 27) Y 13-3/8" J-55&L-80 68 ppf BTC Y: 2,433,991.7 (NAD 27) 2 , 1� Top Bottom Spud: 9/14/2008 a MD 0' 2,510' TD: 10/01/2008 TVD 0' 2,509' Rig Released: 1/14/09 12:00 hrs 3 Jinni 16"Hole Cmt w/869 sks(384 bbls)of 12.0 PA#: 891008868A I ppg,Type 1 cmt. 113 sks(50 bbls)cmt to surface 4 IIIIMINi Intermediate Casing Tree cap=6-112"Otis 9-5/8" L-80 40 ppf BTC 5 1111, Top Bottom MD 0' 7,447' Top of 9-5/8" Casing Cement 6 TVD0' 7,057' est.@ 6,470'MD �i 12-1/4"Hole Cmt w/345 sks(204 bbls)of Class G Lead @ 10.5 ppg&w/160 sks 3E (34 bbls)of Class G Tail @ 15.8 ppg. Top of 3-1/2"Tubing Cement 7 6,470'MD Production Tubing @ 3-1/2" L-80 9.3 ppf tUE 8RD Nxiii,8- 8 Top Bottom :." MD 0' 6,240' Plug @ 7,550'MD g ND 0' 5,883' Capped w/35'of cement =,, Production Tubing(Abandoned) • UBC 3 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom MD 6,465' 9,052' Last Tag: TVD 6,093' 8,662' �I` b' 8-1/2"Hole Cmt w/807 sks(168 bbls) Depth SLM T. Class G @ 15.8 ppg,100%returns. Size/Tool Date • i Excape System Details I ,' :: - 7 Excape modules placed contol line fires modules 5-7 Plug @ 7,890'MDr; :� control line fires Modules 1-4 Capped w/5'of cement - 4 �!] =- �'. Lower Beluga Peas MD(RKB): Gun MD Date '' Completion Assembly • UB C-3 2-1' 12 spf= 6,422'-6,453' Proposed Includes: - i(� LB-17 Module 7 = 7,576'-7,586'• (future) 1 -Gaslift Mandrel,1,200'MD ' LB-19 Module 6 = 7,710'-7,720'• (future) 2-Chemical Injection Mandrel,2,000'MD IDi LB-19 2-1/8"12spf = 7,747'-7,767' •(8/15/13) 3-Gaslift Mandrel,2,400'MD I TO LB-20 2-1/8" 6sfp = 7,782'-7,790' - (8/15/13) 4-Gaslift Mandrel,3,600'MD LB-20 2-3/8" 6spf = 7,784'-7,794' • (9/10/09) 5-Gaslift Mandrel,4,800'MD Di LB-20 2-3/8" 6spf = 7,818'-7,828' • (9/22/09) 6-Gaslift Mandrel,6,000'MD i 7 w LB-20 2-1/2" 6spf = 7,828'-7,830' -(7/07/13) 7-DLH Hydraulic Packer,6,200'MD LB-20 2-3/8" 6spf = 7,830'-7,840'. (9/22/09) 8-X-Profile,6,217'MD - LB-20 2-1/2" 6spf = 7,840'-7,850' -(7/07/13) 9-WLEG,6,240'MD LB-21 Module 5 = 7,900'-7,910'- (4/5/09) LB-23 2-3/8" 6spf = 7,988'-8,016' • (9/22/09) -- - LB-25 Module 4 = 8,173'-8,183' . (4/5/09) Directional Data: LB-27 2-3/8" 4spf = 8,370'-8,376' • (6/3/09) KOP-2,800'at 3.5 deg/100'build TD PBTD LB-28 2-3/8" 4spf = 8,410'-8,420' ' (6/3/09) EOB-4,271',32.0 deg hole angle 9,068'MD 9,016'MD LB-28 Module 3 = 8,458'-8,468' - (4/5/09) Drop 5,533'@ 2.0 deg/100' 8,678'TVD 8,626'TVD LB-29 Module 2 = 8,540'-8,550' • (4/3/09) Hold- 7,494', 1 deg hole angle to TD LB-30 Module 1 = 8,667'-8,677' (4/1/09) Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska _ Country: USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' Angle/Perls: 1° Maximum Deviation: 32°@ 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL):_ 21' Revised By: Stan Porhola Downhole Revision Date: Proposed Schematic Revision Date: 3/17/2014 Beaver Creek BC # 19 BOP Moncla 03/13/2014 II knrp%Wka.1.1.t. Hydril 4.54" • GK 13 5/8-10,000 �� gffil iii iii1d1 1111 DSA 1.00' ` 3 5/8 5M X 13 5/8 10M / II LUAU LUJ it ill Spacer spool 2.00' 135/85MX 13 5/8 SM SI 111 111 111 Iii Min Shaffer LXT = ). — 2 7/8-5 Variables • Is 2.83 r "1•! 13 5/8 5M P.-- om} ®® Blind 2 1/16 5M Kill Valves Ill 111111 11 III 2 1/16 5M Choke Valves Manual and HCR i Mud Cross Manual and HCR 3.00' imir H e ,= 135/85MFE ' - ,,. 1' i w/41/165M . a 04 • 111 11i 111 iii III dk Grade Level :•:1f'ir.i: w,=� m i illk, .,E1 ''- -PlItil IF *OM a IM ii r k Davies, Stephen F (DOA) From: Stan Porhola [sporhola@hilcorp.com] Sent: Friday, March 21, 2014 9:30 AM To: Davies, Stephen F (DOA) Cc: Larry Greenstein Subject: RE: BCU 11 and BCU 19: Planned Perforations Steve, Our current rig schedule would include the BCU-19 (PTD 208-123) and BCU-11 (203-025)workovers followed up with either the BCU-07 (PTD 176-006) or BCU-06 (PTD 181-150) workover. However, the BCU-06 workover may be moved up to take place between the BCU-19 and BCU-11 wells. A sundry for the BCU-06 work will be submitted shortly. The scope of the BCU-06 workover would include abandonment of the existing Upper Beluga intervals between 6,018' and 6,179'. Upon abandonment of these intervals in BCU-06, we would plan to do the thru-tubing perforating of either the BCU-19 or BCU-11 well in the Upper Beluga interval to have only 1 well capable of production according to state spacing rules of 20 AAC 25.055(a)(4), having a single gas well completed in any governmental section within 3,000' of another well that is completed in a zone that is not defined by a pooling agreement. Stan From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 5:56 PM To: Stan Porhola Subject: BCU 11 and BCU 19: Planned Perforations Stan, The Upper Beluga perforations in BCU 6 and the planned Upper Beluga perforations in BCU 11 and BCU 19 appear to lie within the same governmental section and within 3000' of one another. So, unless Hilcorp can prove that these reservoir sands are not in pressure communication, spacing exceptions will be needed under 20 AAC 25.055(a)(4) regardless of whether or not the existing perforations in BCU 6 are plugged. Please let me know if you have questions. • Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Thursday, March 20, 2014 5:09 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 11: Planned Perforations We are currently evaluating plans to cement squeeze the perforations in the Upper Beluga in the BCU-06. Further information is forthcoming. Stan From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 5:07 PM To: Stan Porhola Subject: RE: BCU 11: Planned Perforations Stan, Since the distance from BCU-06 to BCU-11 at the Upper Beluga horizon is 943', please justify why a spacing exception is not required under 20 AAC 25.055(a)(4)for the planned perforations in BCU-11. Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Thursday, March 20, 2014 1:21 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 11: Planned Perforations Steve, The only well that is currently open to the Upper Beluga sands at Beaver Creek is the#6 well (PTD 181-150). The distance from BCU-06 to BCU-11 (PTD 203-025) at the Upper Beluga horizon is 943'. The top of the Beluga Gas Pool within BCU-11 is 7,147' MD(6,911'TVD). Stan From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 12:42 PM To: Stan Porhola Subject: BCU 11: Planned Perforations Stan, What is the distance from the planned perforations in BCU 11 to the nearest well open to those same sands? The Beluga Gas Pool is defined in Conservation Order No. 237. According to Hilcorp's well log correlations,what is the measured depth of the top of the Beluga Gas Pool within BCU 11? Thanks, Steve Davies AOGCC 907-793-1224 2 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, March 20, 2014 5:56 PM To: 'Stan Porhola' Subject: BCU 11 and BCU 19: Planned Perforations Stan, The Upper Beluga perforations in BCU 6 and the planned Upper Beluga perforations in BCU 11 and BCU 19 appear to lie within the same governmental section and within 3000'of one another. So, unless Hilcorp can prove that these reservoir sands are not in pressure communication, spacing exceptions will be needed under 20 ARC 25.055(a)(4) regardless of whether or not the existing perforations in BCU 6 are plugged. Please let me know if you have questions. Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporhola@ hilcorp.com] Sent: Thursday, March 20, 2014 5:09 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 11: Planned Perforations We are currently evaluating plans to cement squeeze the perforations in the Upper Beluga in the BCU-06. Further information is forthcoming. Stan From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 5:07 PM To: Stan Porhola Subject: RE: BCU 11: Planned Perforations Stan, Since the distance from BCU-06 to BCU-11 at the Upper Beluga horizon is 943', please justify why a spacing exception is not required under 20 AAC 25.055(a)(4) for the planned perforations in BCU-11. Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Thursday, March 20, 2014 1:21 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 11: Planned Perforations 1 Davies, Stephen F (DOA) From: Stan Porhola [sporhola@hilcorp.com] Sent: Thursday, March 20, 2014 5:08 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 19: Planned Perforations The Upper Beluga perforations in the BCU-09 (PTD 192-122) have been cement squeezed as of 7/28/2007 and are currently isolated by 2 plugs. Stan From: Davies, Stephen F (DOA) [mailto:steve.davies(aalaska.gov] Sent: Thursday, March 20, 2014 5:01 PM To: Stan Porhola Subject: RE: BCU 19: Planned Perforations Stan, According to AOGCC's records, BCU 9 (located nearby BCU 19), was perforated in the Beluga from 6249'to 6459' MD in January 2004. Please justify why a spacing exception will not be needed under 20 AAC 25.055 for the planned perforations from 6422'to 6453' MD within BCU 19. Thanks, Steve Davies AOGCC 907-793-1224 From: Stan Porhola [mailto:sporhola(ahilcorp.com] Sent: Thursday, March 20, 2014 12:28 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 19: Planned Perforations Steve, The only well that is currently open to the Upper Beluga sands at Beaver Creek is the#6 well (PTD 181-150). The distance from BCU-06 to BCU-11 (PTD 203-025) at the Upper Beluga horizon is 943'. The distance from BCU-06 to BCU-19 (PTD 208-123)at the Upper Beluga horizon is 1,400'. The top of the Beluga Gas Pool within BCU-19 is 7,299' MD (6,909'TVD). Regards, From: Davies, Stephen F (DOA) [mailto:steve.davies@ alaska.gov] Sent: Thursday, March 20, 2014 11:07 AM To: Stan Porhola Subject: BCU 19: Planned Perforations Stan, 1 What is the distance from the planned perforations in BCU 19 to the nearest well open to those same sands? The Beluga Gas Pool is defined in Conservation Order No. 237. According to Hilcorp's well log correlations,what is the measured depth of the top of the Beluga Gas Pool within BCU 19? Thanks, Steve Davies AOGCC 907-793-1224 2 STATE OF ALASKA RECIVED " ALAI,AND GAS CONSERVATION COMM," 11C,{" 0 3 20« REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Repair Well U Plug Perforations U Perforate U Other U Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver p Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development IS Exploratory ❑ 208-123 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,Alaska 99504 50-133-20579-00• 7.Property Designation(Lease Number): 8.Well Name and Number: FEDA028083 • Beaver Creek Unit(BCU)19 • 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Beaver Creek/Beluga Gas Pool 11.Present Well Condition Summary: Total Depth measured 9,068 feet Plugs measured N/A feet true vertical 8,678 feet Junk measured N/A feet Effective Depth measured 9,016 feet Packer measured N/A feet true vertical 8,626 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 106' • 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production Liner Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.3#/L-80 9,052'MD 8,662'TVD Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 1400 Subsequent to operation: 0 0 0 0 1400 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development© • Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas El . WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 313-436 Contact Stan Porhola Email sporhola(g�hilcoro.com Printed Name , 2Stan Porhola Title Operations Engineer f Signature CV ------ Phone 907-777-8412 Y 3,i j v t RBDMS OCT 11 7u-1 Form 10-404 Revised 10/2012 1-r •`.5 Submit Original Only • BC-19 00 - 11 Pad 3 ACTUAL 1,196' FNL, 1,657' FWL, SCHEMATIC uih•orp %hi ka. 1.).A: Sec. 34, T7N, R10W, S.M. Permit ft. 208-1230 1 Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf Prop.Des: A-028083 Top Bottom ' j KB elevation: 182' (21'AGL) f j MD o' 1os' Latitude: 60°39'28.14"N ± ND 0' 106' Longitude: 151°01'10.61'W 1 X: 317,471.6 (NAD 27) `, Y: 2,433,991.7 (NAD 27) 1� Surface Casing Spud: 9/14/2008 13-3/8" J-55&L-80 68 ppf BTC TD: 10/01/2008 Top Bottom MD 0' 2,510' Rig Released: 1/14/09 12:00 hrs ND 0' 2,509' PA#: 891008868A 16"Hole Cmt w/869 sks(384 bbls)of 12.0 ppg,Type 1 cmt. 113 sks(50 bbls)cmt to surface . '', Tree cap=6-1/2"Otis ' ' Intermediate Casing 9-5/8" L-80 40 ppf Butt Top Bottom Top of 9-5/8" Casing Cement - j MD 0' 7,447'7,057'est.@ 6,470'MD D 0' 7,os 12-1/4"Hole Cmt w/345 sks(204 bbls)of d� -�y Class G Lead @ 10.5 ppg&w/160 sks ' J1! (34 bbls)of Class G Tail @ 15.8 ppg. LB-19 Top of 3-1/2"Tubing Cement @ 6,470'MD Production Tubing -r 3-1/2" L-80 9.3 ppf EUE 8RD y Top Bottom LB-20 MD 0' 9,052' ND 0' 8,662' 8-1/2"Hole Cmt w/807 sks(168 bbls) Class G @ 15.8 ppg,100%returns. Tagged fill @ 7,859'KB(8/22/13) p w/2.25"Drive Down Bailer 10 LB-21 Excape System Details - 7 Excape modules placed F LB-23 Red contol line fires modules 5-7 -Green control line fires Modules 1-4 Plug @ 7,890'MD LB-25 Lower Beluga Perfs MD(RKB): Capped w/5'of cement 1:1L, LB-27 Gun MD Date LB-17 Module 7 = 7,576'-7,586' (future) LB-19 Module 6 = 7,710'-7,720' (future) Excape System Details LB-19 2-1/8"12s f = 7,747'-7,767' Module 1 -no flapper LB-28 P (8/15/13) ni LB-20 2-1/8" 6sfp = 7,782'-7,790' (8/15/13) Module 2-7 -Disappearing I ? LB-20 2-3/8" 6spf = 7,784'-7,794' (9/10/09) flappers Di t LB-29 LB-20 2-3/8" 6spf = 7,818'-7,828' (9/22/09) Flappers MD(RKB): I ) LB-20 2-1/2" 6spf = 7,828'-7,830' (7/07/13) Module 7 = 7,596' ill LB-20 2-3/8" 6spf = 7,830'-7,840' Module 6 = 7,730' 3 LB-30 LB-20 2-1/2" 6spf = 7,840'-7,850' (7907/13)) Module 5 = 7,920' ,;• LB-21 Module 5 = 7,900'-7,910' (4/5/09) Module 4 = 8,193' LB-23 2-3/8" 6spf = 7,988'-8,016' (9/22/09) Module 3 = 8,478' LB-25 Module 4 = 8,173'-8,183' (4/5/09) Module 2 = 8,560' LB-27 2-3/8" 4spf = 8,370'-8,376' (6/3/09) Module 1 = NA LB-28 2-3/8" 4spf = 8,410'-8,420' (6/3/09) LB-28 Module 3 = 8,458'-8,468' (4/5/09) Directional Data: LB-29 Module 2 = 8,540'-8,550' (4/3/09) KOP-2,800'at 3.5 deg/100'build TD PBTD LB-30 Module 1 = 8,667'-8,677' (4/1/09) EOB-4,271',32.0 deg hole angle 9,068'MD 9,016'MD Drop-5,533'@ 2.0 deg/100' 8,678'TVD 8,626'TVD Hold- 7,494', 1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country:/ USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' I Angle/Perfs:I 1° Maximum Deviation: 32°t 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By:_ Stan Porhola Downhole Revision Date: 8/22/2013 Schematic Revision Date: 10/2/2013 SO S. Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date BCU-19 50-133-20579-00 208-123 8/15/13 8/15/13 Daily Operations: 08/15/2013-Thursday Mobe to job site. Pollard XO 6-1/2" Otis. TP- 1,450 psi. Rigged up lubricator and pressure test to 250 psi low and 3000 psi high,Armed perf gun. RIH with GPT tool, 2-1/8" x 8' HC, 6 spf, 60 degree phase and tie into Expro Dual Radial CBL/GR/CCL dated 10/24/08. Spot shot from 7,782'to 7,790'. TP- 1,500 psi and BHP 2,542 psi. Fired gun and tubing pressure stayed same while BHP went to 2,810 psi. POOH. FL 5,600'. Armed perf gun. RIH with GPT tool, 2-1/8" x 20' HC, 6 spf, 60 degree phase and tie into Expro Dual Radial CBL/GR/CCL dated 10/24/08. Spot shot from 7,747'to 7,767'. TP- 1,250 psi and BHP 2,640 psi. Fired gun. Let stablize for 20 min. POOH. FL 5,600'. Armed perf gun. Run down short in firing head. RIH CCL, 2- 1/8" x 20' HC, 6 spf, 60 degree phase and tie into Expro Dual Radial CBL/GR/CCL dated 10/24/08. Spot shot from 7,747'to 7,767'. TP- 1200 psi. Fired gun and no pressure change. POOH. FL 5,600'. Rig down lubricator and clean up area. •V OF 7.4 • • I%% s?, THE STATE Alaska Oil and as n LASKA Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue OF Q. Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1 433 '6r,`) Fax: 907.276.7542 Stan Porhola Operations Engineer Hilcorp Alaska, LLC 3\08- 1 .9-3 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, Beaver Creek Unit#19 Sundry Number: 313-436 Dear Mr. Porhola: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P oerster Chair DATED this ��o day of August, 2013. Encl. • • cei ,, 5, 1 STATE OF ALASKA 4,t‘ I AUG 12 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate 0 " Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other. ❑ 2.Operator Name: 4.Current WeN Class: 5.Permit to DriN Number. Hilcorp Alaska,LLC Exploratory ❑ Development Q 208-123 3.Address: 3800 Centerpoint Drive,Suite 100 Stratigraphic ❑ Service ❑ 6.API Number. a Alaska 995 50-133-20579-00 ■ Anchorage, 99503 7.If perforating: / 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? CO 609 ✓ Beaver Creek Unit(BCU)#19• Will planned perforations require a spacing exception? Yes El No 9.Property Designation(Lease Number): 10.Field/Pool(s): FEDA028083 - Beaver Creek/Beluga Gas Pool . 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): 9,068' ' 8,678' ' 9,016' 8,626' N/A N/A Casing Length Size MD ND Burst Collapse Structural Conductor 106' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,510' 13-3/8" 2,510' 2,509' 3,450 psi 1,950 psi Intermediate 7,447' 9-5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production • Liner I Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.3#/L-80 9,052' Packers and SSSV Type: N/A;N/A Packers and SSSV MD(ft)and ND(ft): N/A;N/A 12.Attachments: Description Summary of Proposal El 13.Well Class after proposed work: Detailed Operations Program U BOP Sketch U Exploratory U Stratigraphic U Development U Service U 14.Estimated Date for 15.Well Status after proposed work: 08/15/13 Commencing Operations: Oil ❑ Gas ID WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ El GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: = GSTOR El SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Phone: 907-777-8412 Email sporholaa.hilcorp.com Printed Name Stan Porhola Title Operations Engineer l Signature 'V 41/4- Phone 907-777-8412 Date , 12// 3 COMMISSION USE ONLY ((r Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 31 (4 Plug Integrity 111 BOP BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance Other: FiBflME OCT 1 0 2613/4. Spacing Exception Required? Yes ❑ No [r, Subsequent Form Required: /) _ci0 y APPROVED BY Approved by: � 1r1) 1^/�CCOMMISSIOOANER THE COMMISSION Date: F_/� -/3 Form 10-403(Revised 10/2012) Approved MRc ilrt7s�tc>C.>12�onths fr61n the date f pproval. Attachments n Duplicate ' ."+ � VVVV fff ��` VVVV !! 11 `` !� /�9 W'A t H • • Well Prognosis Well: BCU-19 Hilcorp Alaska,LI) Date:8/12/2013 Well Name: BCU#19 API Number: 50-133-20579-00 Current Status: Shut-In Gas Well Leg: N/A Estimated Start Date: August 15th, 2013 Rig: N/A Reg.Approval Req'd? 403 Date Reg.Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-123 First Call Engineer: Stan Porhola (907)777-8412 (0) (907)331-8228(M) Second Call Engineer: Chad Helgeson (907)777-8405 (0) (907) 229-4824(M) AFE Number: Current Bottom Hole Pressure: —3,421 psi @ 8,300' TVD (Static survey July 2009 below bottom zone 8,690' MD) Maximum Expected BHP: —3,421 psi @ 8,300'TVD (Static survey July 2009 below bottom zone 8,690' MD) Max.Allowable Surface Pressure: —2,591 psi (Based on actual reservoir conditions and gas gradient to surface(0.10psi/ft) Brief Well Summary Beaver Creek Unit#19 was drilled as a Grass roots EXCAPE monobore completion in 2009 to target gas sands in the lower Beluga formation. The bottom 5 EXCAPE modules were perforated and fracture stimulated and additional zones were wireline perforated in 2009.The well performance was initially poor and was shut-in shortly after completion. Recently added perforations in July 2013 were unproductive. Notes Regarding Wellbore Condition • Well is shut-in due to non-commercial rates. • Wellbore deviation at the perforations is less than 1 degree. Maximum deviation is 33 degrees. OBJECTIVE OF WORKOVER Add new perfs in the LB-19 and add new perfs and re-perforate in the LB-20 Lower Beluga sand. / E-line Procedure: 1. MIRU E-line, PT lubricator to 3,000 psi Hi 250 Low. 2. RU 2.125"6 spf HC wireline guns. 3. RIH and perforate Lower Beluga (LB-20) interval from 7,782'-7,790' (1 run,total of 6 spf). 4. RIH and perforate Lower Beluga (LB-19) interval from 7,747'-7,767' (2 runs,total of 12 spf). a. Proposed perfs shown on the proposed schematic in red font. b. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. c. Utilize Pressure/Temperature tool on run to shoot LB-20. d. Utilize Pressure/Temperature tool on 1st run to shoot LB-19. e. Record tubing pressures before and after each perforating run. 5. RD E-line. 6. Turn well over to production. Attachments: 1. As-built Schematic 2. Proposed Schematic BC-19 • s ACTUAL Pad 3 1,196' FNL, 1,657' FWL, SCHEMATIC llilcorp Alaska,LLC Sec. 34, T7N, R1 OW, S.M. Permit#: 208-1230 Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) TVD 0' 106' Latitude: 60°39'28.14"N • Longitude: 151°01'10.61'W X: 317,471.6 (NAD 27) Surface Casing Y: 2,433,991.7 (NAD 27) 13-3/8" J-55&L-80 68 ppf BTC Spud: 9/14/2008 Top Bottom TD: 10/01/2008 MD 0' 2,510' Rig Released: 1/14/09 12:00 hrs TVD 0' 2,509' PA#: 891008868A 16"Hole Cmt w/869 sks(384 bbls)of 12.0 ., ppg,Type 1 cmt. ' 't 113 sks(50 bbls)cmt to surface Tree cap=4-3/4"Otis }� Intermediate Casing 9-5/8" L-80 40 ppf Butt o 111; Top Bottom MD 0' 7,447' Top of 9-5/8" Casing Cement TVD 0' 7,057' est.@ 6,470'MD +. 12-1/4"Hole Cmt w/345 sks(204 bbls)of /., ) Class G Lead @ 10.5 ppg&w/160 sks 4' �? (34 bbls)of Class G Tail @ 15.8 ppg. Is,: Top of 3-1/2"Tubing Cement f Production Tubing @ 6,470'MD 3-1/2" L-80 9.3 ppf EUE 8RD Top Bottom __ MD 0' 9,052' LB-20 TVD 0' 8,662' L.30 lira 8-1/2"Hole Cmt w/807 sks(168 bbls) Class G @ 15.8 ppg,100%returns. p' Tagged fill @ 7,867'KB(7113/13) w/1.75"Drive Down Bailer (I LB-21 Excape System Details M TTT - 7 Excape modules placed - LB-23 -_ =a contol line fires modules 5-7 control line fires Modules 1-4 I Plug @ 7,890'MD LB-25 Lower Beluga Perfs MD(RKB):■Capped w/5'of cement Gun MD Date LB-27 LB-17 Module 7 = 7,576'-7,586' (future) LB-19 Module 6 = 7,710'-7,720' (future) Excape System Details - LB-28 LB-20 2-3/8" 6spf = 7,784'-7,794' (9/10/09) Module 1 -no flapper 111 LB-20 2-3/8" 6spf = 7,818'-7,828' (9/22/09) Module 2-7 -Disappearing ) LB-20 2-1/2" 6spf = 7,828'-7,830' (7/07/13) flappers • • ill LB-29 LB-20 2-3/8" 6spf = 7,830'-7,840' (9/22/09) Flappers MD(RKB): '' I ) LB-20 2-1/2" 6spf = 7,840'-7,850' (7/07/13) Module 7 = 7,596' --- 111 LB-21 Module 5 = 7,900'-7,910' (4/5/09) LB-30 Module 6 = 7,730' `.•,` ) r LB-23 2-3/8" 6spf = 7,988' 8,016' (9/22/09) Module 5 = 7,920' LB-25 Module 4 = 8,173'-8,183' (4/5/09) Module 4 = 8,193' LB-27 2-3/8" 4spf = 8,370' 8,376' (6/3/09) Module 3 = 8,478' IE'lI m il LB-28 2-3/8" 4spf = 8,410'-8,420' (6/3/09) Module 2 = 8,560' ' AB g LB-28 Module 3 = 8,458'-8,468' (4/5/09) Module 1 = NA LB-29 Module 2 = 8,540'-8,550' (4/3/09) LB-30 Module 1 = 8,667'-8,677' (4/1/09) Directional Data: KOP-2,800'at 3.5 deg/100'build TD PBTD EOB-4,271',32.0 deg hole angle 9,068'MD 9,016'MD Drop-5,533'@ 2.0 deg/100' 8,678'TVD 8,626'TVD Hold- 7,494', 1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country:I USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' I Angle/Perfs:l 1° Maximum Deviation: 32°@ 4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: 7/13/2013 Schematic Revision Date: 8/9/2013 BC-19 • . ; .11 Pad 3 PROPOSED 1,196' FNL, 1,657' FWL, SCHEMATIC Hilcorp Alaska,LLC Sec. 34, T7N, R10W, S.M. Permit#: 208-1230 Conductor API#: 50-133-20579-00-S1 20" K-55 133 ppf mD Prop.Des: A-028083 Top Bottom KB elevation: 182' (21'AGL) TVD 0' 106' Latitude: 60°39'28.14"N Longitude: 151°01'10.61'W X: 317,471.6 (NAD 27) Surface Casing Y: 2,433,991.7 (NAD 27) 13-3/8" J-55&L-80 68 ppf BTC Spud: 9/14/2008 Top Bottom TD: 10/01/2008 MD 0' 2,510' Rig Released: 1/14/09 12:00 hrs ''i'.*i TVD 0' 2,509' PA#: 891008868A 16"Hole Cmt w/869 sks(384 bbls)of 12.0 :,. • ppg,Type 1 cmt. ``i ,Y 113 sks(50 bbls)cmt to surface Tree cap=4-3/4"Otis Intermediate Casing 9-5/8" L-80 40 ppf Butt • •• Top Bottom MD 0' 7,447' Top of 9-5/8" Casing Cement iii' I TVD 0' 7,057' �' C est.@ 6,470'MD 1j 12-1/4"Hole Cmt w/345 sks(204 bbls)of Class G Lead @ 10.5 ppg&w/160 sks ;t (34 bbls)of Class G Tail @ 15.8 ppg. ‘' S- 1 LB-19 Top of 3-1/2"Tubing Cement . Production Tubing @ 6,470'MD LB-20 3-1/2" L-80 9.3 ppf EUE 8RD .I Top Bottom MD 0' 9,052' HI' LB-20 TVD 0' 8,662' 8-1/2"Hole Cmt w/807 sks(168 bbls) Class G @ 15.8 ppg,100%returns. Tagged fill @ 7,867'KB(7/13/13) w/1.75"Drive Down Bailer , it 1) LB-21 Excape System Details ' - 7 Excape modules placed • LB-23 - contol line fires modules 5-7 � control line fires Modules 1-4 Plug 7,890'MD ,� 3 LB-25 9 @ Lower Beluga Perfs MD(RKB): Capped w/5'of cement - LB 27 Gun MD Date LB-17 Module 7 = 7,576'-7,586' (future) LB-19 Module 6 = 7,710'-7,720' (future) Excape System Details LB-19 2-1/8"12spf = 7,747'-7,767' (Proposed) Module 1 -no flapper LB 26 LB-20 2-1/8" 6sfp = 7,782'-7,790' (Proposed) Module 2-7 -Disappearing ) LB-20 2-3/8" 6spf = 7,784'-7,794' (9/10/09) flappers - 19 LB-29 LB-20 2-3/8" 6spf = 7,818'-7,828' (9/22/09) Flappers MD(RKB): 3 LB-20 2-1/2" 6spf = 7,828'-7,830' (7/07/13) Module 7 = 7,596' III -- LB-20 2-3/8" 6spf = 7,830'-7,840' (9/22/09) Module 6 = 7,730' a ' LB-30 LB-20 2-1/2" 6spf = 7,840'-7,850' (7/07/13) Module 5 = 7,920' LB-21 Module 5 = 7,900'-7,910' (4/5/09) Module 4 = 8,193' • LB-23 2-3/8" 6spf = 7,988'-8,016' (9/22/09) Module 3 = 8,478' El- , LB-25 Module 4 = 8,173'-8,183' (4/5/09) Module 2 = 8,560' -' IL-} LB-27 2-3/8" 4spf = 8,370'-8,376' (6/3/09) Module 1 = NA LB-28 2-3/8" 4spf = 8,410'-8,420' (6/3/09) . LB-28 Module 3 = 8,458'-8,468' (4/5/09) Directional Data: LB-29 Module 2 = 8,540'-8,550' (4/3/09) KOP-2,800'at 3.5 deg/100'build TD PBTD LB-30 Module 1 = 8,667'-8,677' (4/1/09) EOB-4,271',32.0 deg hole angle 9,068'MD 9,016'MD Drop-5,533'@ 2.0 deg/100' 8,678'TVD 8,626'TVD Hold- 7,494',1 deg hole angle to TD Well Name&Number: Beaver Creek Unit#19 Lease: A-028083 County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country:/ USA Angle @KOP and Depth: 1.2°/100 ft @ 2,800' I Angle/Perfs:I 1° Maximum Deviation: 32° et.4,397' Date Completed: 10/07/08 Ground Level(above MSL): 161' RKB(above GL): 21' Revised By: Stan Porhola Downhole Revision Date: Proposed _ Schematic Revision Date: 8/9/2013 DATA SUBMITTAL COMPLIANCE REPORT 4/4/2011 Permit to Drill 2081230 Well Name /No. BEAVER CK UNIT 19 Operator MARATHON OIL CO API No. 50- 133 - 20579 -00-00 MD 9068 TVD 8678 Completion Date 4/2/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION ) Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Quad combo, CBL, GR, CCL, RFT (data taken from Logs Portion of Master Well Data Maint • Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval 011 / Type MedlFrmt Number Name Scale Media No Start Stop CH Received Comments ■Rpt Report: Final Well R Open 11/5/2009 Final Well Report, Mud Eqip & Crew, Well Detail, Geo Data, Drill Data, Daily Reps 7 C Las 18877Cfnduction /Resistivity 7300 9015 Open 11/5/2009 OH LAS data, Final Well Report, Mud Eqip & Crew, Well Detail, Geo Data, Drill Data, Daily Reps 3D mud log graphics and LAS Wireline data. Log Mud Log 2 Col 106 9068 Open 11/5/2009 MD Formation Log Lc6g Mud Log 2 Col 106 9068 Open 11/5/2009 TVD Formation Log Log/ Mud Log 2 Col 106 9068 Open 11/5/2009 MD Drilling Dynamics Log ' V- Mud Log 2 Col 106 9068 Open 11/5/2009 TVD Drilling Dynamics Log,, Sonic 25 Blu 2510 7443 Open 11/5/2009 MD Comp Sonic Log/ Caliper log 5 Blu 2510 7415 Open 11/5/2009 MD Hole Volu, Cali Logue' Cement Evaluation 5 Blu 6200 8930 Case 11/5/2009 MDDuaI Radical CBL, CCL Log. Density 25 Col 7447 8975 Open 11/5/2009 MD Photo Dens, Dual Spaced Neutron Low Density 25 Blu 2510 7416 Open 11/5/2009 MD Photo Dens, Dual Spaced Neutron Log Induction /Resistivity 25 Col 7447 9015 Open 11/5/2009 MD Quad Combo Quicklook DATA SUBMITTAL COMPLIANCE REPORT 4/4/2011 Permit to Drill 2081230 Well Name /No. BEAVER CK UNIT 19 Operator MARATHON OIL CO API No. 50- 133 - 20579 -00 -00 MD 9068 TVD 8678 Completion Date 4/2/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N Log{ Induction /Resistivity 25 Blu 2510 7456 Open 11/5/2009 MD Quad Combo Quicklook Log/ Induction /Resistivity 25 Col 7447 9015 Open 11/5/2009 MD Array Induction, Vectar Process Log' Induction /Resistivity 25 Col 2510 7456 Open 11/5/2009 MD Array Induction, Vectar • Process Lgj Induction /Resistivity 25 Col 7447 9015 Open 11/5/2009 MD Array Induct, Shallow Focus Log Induction /Resistivity 25 Blu 2510 7456 Open 11/5/2009 MD Array Induct, Shallow Focus /tog Induction /Resistivity 25 Col 7057 8652 Open 11/5/2009 TVD Array Induct, Shallow Focus Log" Induction /Resistivity 25 Blu 2509 7066 Open 11/5/2009 TVD Array Induct, Shallow Focus Log- og- Sonic 25 Col 7446 9002 Open 11/5/2009 MD Comp Sonic Log Caliper log 5 Col 7447 8975 Open 11/5/2009 MD Hole Volu, Cali Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cores and /or Samples are required to be submitted. This record automatically created IIII 1 _ from Permit to Drill Module on: 8/13/2008. ADDITIONAL INFORMATION Well Cored? Y6.) Daily History Received? / Cy N Chips Received? 'Y"/ N Formation Tops Analysis Y�11 f Received? Comments: DATA SUBMITTAL COMPLIANCE REPORT 4/4/2011 Permit to Drill 2081230 Well Name /No. BEAVER CK UNIT 19 Operator MARATHON OIL CO API No. 50- 133 - 20579 -00 -00 MD 9068 TVD 8678 Completion Date 4/2/2009 Completion Status 1 -GAS Current Status 1 -GAS UIC N Compliance Reviewed By: Date: _ 94; • • n Oil Maratho O Company Marathon P.O. Asset Team Aik P.O. Box 1949 MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 November 11, 2009 Mr. Winton Aubert RECEIVED Alaska Oil & Gas Conservation Commission 333 W 7 Ave NOV 1 2 2009 Anchorage, Alaska 99501 Alaska Oil & Gas Cons. Commission Anchorage Reference: 10 -421 Open Flow Potential Test Report O�� °-13 p p Field: Beaver Creek Field Well: Beaver Creek #19 Dear Mr. Aubert: Enclosed is the Open Flow Potential Test Report, 10 -421, for well BC -19. This well was spud on September 14, 2008 and completed into the Beluga formation. BC -19 has not proven to be commercially productive. It has a total production, to sales, of 31 mcf. The normal well testing process was hindered by BC -19's weak and sporadic flow. The resulting information, for this report, was derived from a one -point test. Please call me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, e A v 9-, N a Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -421 Open Flow Potential Test Report cc: Houston Well File Kenai Well File KJS STATE OF ALASKA ALASKIIIIL AND GAS CONSERVATION COMMI N GAS WELL OPEN FLOW POTENTIAL TEST REPORT la. Test: U Initial U Annual U Special 1b. Type Test: U Stabilized U Non Stabilized U Multipoint ❑ Constant Time ❑ Isochronal 0 Other 2. Operator Name: 5. Date Completed: �,1. Permit to Drill Number: Marathon Alaska Production LLC 4/1/2009 ti 208 - 1230 3. Address: 6. Date TD Reached: 'fc. API Number: PO BOX 1949 Kenai, Alaska 99611 -1949 10/1/2008 50 133 - 20579 - 00 - S1 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): §1 Well Name and Number: Surface: 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. 21' KB , 182' MSL Beaver Creek Unit #19 Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 2,687' FNL, 1,088' FWL, Sec. 34, T7N, R10W, S.M. 9,016' MD 8,626' TVD Total Depth: 9. Total Depth (MD + TVD): Beaver Creek Field / Beluga Pool 2,679' FNL, 1,082' FWL, Sec. 34, T7N, R10W, S.M. 9,068' MD 8,678' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x - 317471.6 Y 2433991.7 Zone 4 NA A 028083 TPI: x 316881.1 Y 2432507.7 Zone 4 16. Type of Completion (Describe): Total Depth: x - 316892.5 Y 2432495.2 Zone 4 Excape Completion Process (Multi - zone, Frac stimulated) 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 3.500" 9.3ppf, L -80 2.992" 9,052' 7,784'- 7,794', 7,818'- 7,828', 7,830'- 7,840', 7,900'- 7,910', 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 7,988' - 8,016', 8,173'-8,183', 8,370'-8,376', 8,410' - 8,420', 8,458' - 8,468', 8,540' - 8,550', 8,667' - 8,677' 3.500" 9.3ppf, L -80 2.992" 9,052' (5 active Excape modules & 6 pert intervals) 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): N/A - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing • Casing 132 F° 1,420 psia @ Datum 7,474' TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N2: % H Prover: Meter Run: Taps: 7,763' MD 7,373' TVD 0.56 0.312 0.174 0 Well Testers 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line X Orifice psig Hw F psig F° psig F Hr. Size (in.) Size (in.) 1. 3.826 X 1.500 101 1.3 45 - - - - —72 2. X 3. X 4. X 5. X Basic Coefficient Flow Temp. Super Comp. � Pressure Gravity Factor Rate of Flow No. (24 -Hour) by wPm Pm Factor F Factor Q Mcfd Fb or Fp Ft 9 Fpv 1. 46.28 7.64853 115.73 1.00 1.3363 1.0102 354 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 0.17 505 1.471 0.98 0.56 - 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. q Form 10- 44'$004 NOV 1 2 LOOS C NTINUED ON REVERSE SIDE Submit in Duplicate • Pc 1,198 Pc 1,435,632.44 0 • P{ No. Pt Pt Pc Pw Pub Pc Ps Ps Pf -Ps 1. 116 13,393.43 2. 3. 4. 5. 25. AOF (Mcfd) 356 n 0.750 Remarks: This is an EXCAPE Completion. Well was not shut in during test. SIWHP was estimated at 1,183 psig based on MFT pressures taken when logging. hereby certify that the foregoing is true and orrect to the best of my knowledge. y I Signed 0, Title Regulartory Compliance Tech Date 11/11/2009 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd / ifiwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= ddimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air = 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Rowing pressure at vertical depth H, psia Pt Rowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 a $ • • Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MARATHON Alaska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 RECEIVED November 4, 2009 NOV 0 5 2009 Mr. Winton Aubert Alaska Oil & Gas Cons. Commission Alaska Oil & Gas Conservation Commission Anchorage 333 W 7 Ave Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Beaver Creek Field Well: Beaver Creek #19 Dear Mr. Aubert: Submitted for your records is the Well Completion Report and Log for BC -19 well. BC -19 is a newly drilled Beluga formation well in the Beaver Creek Field. This well has a seven Excape module well configuration. The lower five modules have been perforated and fracture simulated. The total proppant utilized during stimulated activities was 60,100 Ibs of 20 -40 Ottawa sand and 4,500 Ibs of Flex sand. The upper two modules ( #6 & #7) have been placed across low pressure, partially depleted, intervals. These zones are not attractive for production at this time, but may hold future utility. Six conventionally perforated intervals were also added creating a total perforation interval spanning from 7,784' MD to 8,677' MD. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, i ( j 1 Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File p P 9 Reference Attachment List Kenai Well File KJS ALAS�OIL AND GAS CO AT ON COMMIPON �� , ® o WELL COMPLETION OR RECOMPLETION REPORT AN6i.o; Oil ❑ Gas 0 Plugged ❑ Abandoned ❑ Suspended ❑ lb. Well Cla f .f)ii & G88 Cons. C i ri, issior 20AAC 25.105 20AAC 25.110 Development Ar p n 5 4Qr ry • GINJ ❑ WINJ ❑ W DSPL ❑ WAG ❑ Other ❑ No. of Completions: Service ❑ Stratigraphic est ❑ 2. Operator Name: 5. Date Comp., Susp., or 2.. Permit to Drill #: 208 - 1230 Marathon Oil Company Aband.: Sundry #: 308 -365 1► L I 2009 309 -003 309 -347 3. Address: PO Box 1949 6. Date Spudded: *. API Number: Kenai Alaska, 99611 -1949 9/14/2008 50- 133 - 20579 -00 -00 4a. Location of Well (Governmental Section): 7. Date TD Reached: \14. Well Name and Number: Surface: 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. 10/1/2008 Beaver Creek Unit #19 Top of Productive Horizon: 8. KB (ft above MSL): 182' 15. Field /Pool(s): 2,687' FNL, 1,088' FWL, Sec. 34, T7N, R10W, S.M. Ground (ft MSL): 161' Total Depth: 9. Plug Back Depth(MD +TVD): Beaver Creek Field / Beluga Pool 2,679' FNL, 1,082' FWL, Sec. 34, T7N, R10W, S.M. 9,016' MD 8,626' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 317,471.60 y - 2,433,991.70 Zone- 4 9,068' 8,678' A - 028083 TPI: x- 316,881.10 y- 2,432,507.70 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 316,892.50 y - 2,432,495.20 Zone- 4 NA NA 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, CBL, Gamma Ray, CCL, RFT • 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASIf�1G GRADE TOP BOTTOM � TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 133 K -55 0' 106' 0' 106' Driven NA NA 13 -3/8" 68 J -55, L -80 I 0' 2,510' 0' 2,509' 16" / 869 sks, Type -1 113 sks 9 -5/8" 40 L -80 0' 7,447' 0' 7,057' 12 -1/4" / 505 sks, Class -G 0 3 -1/2" 9.3 L -80 0' 9,052' 0' 8,662' 8 -1/2" 807 sks, Class -G 0 23. Open to production or injection? Yes 0 No ❑ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) / MD / TVD Perf Size #/ft 3 -1/2" 9,052' NA 7,784' - 7,794' 7,394' - 7,404' 0.22" 4 spf 7,818' - 7,828' 7,428' - 7,438' 0.22" 4 spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 7,830' - 7,840' 7,440' - 7,450' 0.22" 4 spf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 7,900' - 7,910' 7,510' - 7,520' 0.28" 6 spf 7,900'- 7,910' 21,130# of 20/40 Ottawa & 3,020# of Flex sand 7,988' - 8,016' 7,598' - 7,626' 0.22" 4 spf 8,173' - 8,183' 10,600# of 20/40 Ottawa & 1,320# of Flex sand 8,173' - 8,183' 7,783' - 7,986' 0.28" 6 spf 8,458' - 8,468' 13,500# of 20/40 Ottawa sand 8,370' - 8,376' 7,980' - 7,986' 0.22" 4 spf 8,540'- 8,550' 13,030# of 20/40 Otawa sand 8,410' - 8,420' 8,020' - 8,030' 0.22" 4 spf 8,667'- 8,677' 1,840# of 20/40 Ottawa & 160# of Flex sand 8,458' - 8,468' 8,068' - 8,078' 0.28" 6 spf 8,540' - 8,550' 8,150' - 8,160' 0.28" 6 spf 8,667' - 8,677' 8,277' - 8,287' 0.28" 6 spf 26. PRODUCTION TEST Date First Production: 6/10/2009 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 10/14/2009 24 Test Period -► 0 401 33 128/64 100% gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 30 0 24 -Hour Rate ■■■ 0 401 33 0.56 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water COMPLETION, (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. t a } r Form 10 - 407 Revised 2/2007 CONTINUED ON REVERSE Vl� Y ` Ik /. .--- - 28. GEOLOGIC MARKERS (List all formations and mark: countered): 29. FORMATION TESTS NAME MD TVD Well tested? 0 Yes • No yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base Sterling BO 5,051' 4,854' MD Upper Beluga UB1 6,064' 5,724' 7,569' - 7,579' LB15 7,366' 6,976' 7,705' - 7,715' LB16 7,427' 7,037' 7,784' - 7,794' LB17 7,522' 7,132' 7,818' - 7,828' LB18 7,595' 7,205' 7,830' - 7,840' LB19 7,668' 7,278' 7,901' - 7,911' LB20 7,732' 7,342' 7,988' - 8,016' LB21 7,851' 7,461' 8,176' - 8,186' LB22 7,917' 7,527' 8,370' - 8,376' LB23 7,999' 7,609' 8,410' - 8,420' LB24 8,087' 7,697' 8,462' - 8,472' LB25 8,152' 7,762' 8,542' - 8,552' LB26 8,239' 7,849' 8,670' - 8,680' LB27 8,326' 7,936' LB28 8,379' 7,989' LB29 8,525' 8,135' LB30 8,610' 8,220' LB31 8,704' 8,314' LB32 8,755' 8,365' LB33 8,794' 8,404' Formation at total depth: LB33 30. List of Attachments: Refer to attachment list 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: Kevin J. Skiba Title: Regulatory Compliance Technician Signature: .....0(Jl/■‘., Phone: (907) 283 - 1371 Date: November 4, 2009 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 wet 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 and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 212007 • BC -19 Beaver Creek Field Attachment List End of Well Report Well Schematic Perforation / Stimulation sheet Directional Survey Operations Summary Logs • Array Induction Vectar Processing MD (9- 27 -08) • Array Induction Vectar Processing MD (10 -2 -08) • Array Induction Shallow Focussed MD (9- 27 -08) • Array Induction Shallow Focussed MD (10 -2 -08) • Array Induction Shallow Focussed TVD (9- 27 -08) • Array Induction Shallow Focussed TVD (10 -2 -08) • Photo Density Dual Spaced Neutron MD (9- 27 -08) • Photo Density Dual Spaced Neutron MD (10 -2 -08) • Hole Volume Caliper MD (9- 27 -08) • Hole Volume Caliper MD (10 -2 -08) • Quad -Combo Log MD (9- 27 -08) • Quad -Combo QuickLook MD (10 -2 -08) • Compensated Sonic MD (9- 27 -08)) • Compensated Sonic MD (10 -2 -08) • Formation Tester MD • Dual Radial Cement Bond Gamma Ray /CCL (10- 24 -08) Compact Disc • Directional Survey • Wireline Log Data • Mud Log Data • Cement Bond Log Data . 0 Beaver Creek #19 Perforation intervals & fracture stimulation information Perforations: MD TVD Perf Size # / Ft 7,784' - 7,794' 7,394' - 7,404' 0.22" 4 spf 7,818' - 7,828' 7,428' - 7,438' 0.22" 4 spf 7,830' - 7,840' 7,440' - 7,450' 0.22" 4 spf 7,900' - 7,910' 7,510' - 7,520' 0.28" 6 spf 7,988' - 8,016' 7,598' - 7,626' 0.22" 4 spf 8,173' - 8,183' 7,783' - 7,986' 0.28" 6 spf 8,370' - 8,376' 7,980' - 7,986' 0.22" 4 spf 8,410' - 8,420' 8,020' - 8,030' 0.22" 4 spf 8,458' - 8,468' 8,068' - 8,078' 0.28" 6 spf 8,540' - 8,550' 8,150' - 8,160' 0.28" 6 spf 8,667' - 8,677' 8,277' - 8,287' 0.28" 6 spf Fracture Information: MD Amount & kind of proppants used 7,900'- 7,910' 21,130# of 20/40 Ottawa & 3,020# of Flex sand 8,173' - 8,183' 10,600# of 20/40 Ottawa & 1,320# of Flex sand 8,458' - 8,468' 13,500# of 20/40 Ottawa sand 8,540' - 8,550' 13,030# of 20/40 Otawa sand 8,667' - 8,677' 1,840# of 20/40 Ottawa & 160# of Flex sand BC -19 0 Permit #: 208 -1230 Pad 3 API #: 50- 133 - 20579 -00 -S1 Prop. Des: A- 028083 1,196' FNL, 1,657' FWL, MARATHO KB elevation: 182' (21' AGL) Sec. 34, T7N, R10W, S.M. Latitude: 60° 39' 28.14" N Longitude: 151° 01' 10.61' W 20" K - 55 133 ppf X: 317,471.6 (NAD 27) Top Bottom Y: 2,433,991.7 (NAD 27) MD Conductor 0 106' Spud: 9/14/2008 TVD 0' 106' TD: 10/01/2008 Rig Released: 1/14/09 12:00 hrs Surface Casing PA #: 891008868A 13 -3/8" J -55 & L -80 68 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt wl 869 sks (384 bbls) of 12.0 ppg, Type 1 cmt . Tree crossing = 4 - 3/4" Otis 113 sks (50 bbls) cmt to surface . Intermediate Casing 9 -5/8" L -80 40 ppf Butt Top of 9 -5/8" Casing Cement Top Bottom est. @ 6,470' MD MD 0' 7,7' TVD 0' 7,05057' 12 -1/4" Hole Cmt w/ 345 sks (204 bbls) of ol Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppg. Top of 3 - 1/2" Tubing Cement w Production Tubing @ 6,470' MD 11 3 -1/2" L -80 9.3 ppf EUE I F } Top Bottom MD 0' 9,052' __L- ___ ._ ___,_ TVD 0' 8,662' __: 8 -1/2" Hole Cmt w/ 807 sks (168 bbls) i� Class G @ 15.8 ppg, 100% returns. Excape System Details " 11 Excape System Details Flappers MD (RKB): - - 7 Excape modules placed Module 7 = 7,604' -� - Red contol line fires modules 5 -7 Module 6 = 7,738' (I control line fires Modules 1 -4 Module 5 = 7,935' ) Module 4 = 8,208' * ,208' L - Lower Beluga Perfs MD (RKB): Module 3 = 8,495' _ - ` Module 2 = 8,575' I�_ Gun MD Date Module 1 = NA LB -17 Module 7 = 7,576' - 7,586' (future) LB -19 Module 6 = 7,710' - 7,720' (future) Di LB -20 2 -3/8" 6spf = 7,784' - 7,794' (9/10/09) LB -20 2 -3/8" 6spf = 7,818' - 7,828' (9/22/09) �? LB -20 2 -3/8" 6spf = 7,830' - 7,840' (9/22/09) DI i LB -21 Module 5 = 7,900' - 7,910' (4/5/09) ' LB -23 2 -3/8" 6spf = 7,988' - 8,016' (9/22/09) Tag @ 8,535' MD (10/12/09) w/ capstring LB -25 Module 4 = 8,173' 8,183' (4/5/09) (capstring was set at 8,463' MD & then removed) Ell LB - 2 - 3/8" 4spf = 8,370' - 8,376' (6/3/09) ',4 LB-28 2 -3/8" 4spf = 8,410' - 8,420' (6/3/09) -'.. IL -51 LB -28 Module 3 = 8,458' - 8,468' (4/5/09) LB -29 Module 2 = 8,540' - 8,550' (4/3/09) LB -30 Module 1 = 8,667' - 8,677' (4/1/09) TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Well Name & Number: Beaver Creek 19 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska l Country: USA Perforations (MD): 7,784' - 8,677' (TVD): 7,394' - 8,287' Angle @ KOP and Depth: --1.2°I 100' @ 2,800 ft Angle /Perfs: -0.8° Dated Completed: 4/1/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 11/2/2009 • Ak Marathon Operations Summary Report M TM icsi Company Well Name: BEAVER CREEK 19 QtrlQtr, Block, Sec. Town, Range Field Name License No. State /Province Country SEC 34, T7N, R1OW, S.M. BEAVER CREEK ALASKA USA Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 9/14/2008 10/3/2008 Daily Operations Report Date: 9112/2008 Job Category: DRILLING 24 Hr Summary Move in & rig up GD -1 over BC -19 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 MOB RIG AF Move in GD -1. Set Water tank, Boiler and Generator house. Set Sub and center over conductor. Set pit and pump units. Set mud boat 12:00 13:00 1.00 MOB RIG AF Weekly safety meeting with both crews. Discuss safety plan for working in the Beaver Creek area and pads. Review driving conditions and speed limits. 13:00 21:00 8.00 MOB RIG AF PJSM: Move in & set generator house, boiler house, water tank house. Scope up sub base & pin off. Pull pumps & pits buildings together. Pull wires to pit house & back of carrier for lights while craning up. 21:00 00:00 3.00 RURD RIG AF PJSM w/ crane operator: Crane in derrick house, dog house, drillers side gray iron & fuel tank. 00:00 06:00 6.00 RURD RIG AF PJSM: Crane in pit side gray iron, flowline, choke house, gas buster, BOP connex, front wind walls, stairs & landings. Rig up lights & raise mast. Crane up back wind walls. Prep mast to scope up. Report Date: 9/13/2008 Job Category: DRILLING p 24 Hr Summary Con't rig up GD -1 over BC -19. Install & test starter head. N/U diverter. Accept rig @ 00:00 hrs. on 9/13/2008. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 17:00 11.00 RURD RIG AF PJSM: Continue R/U GD -1. Scope up mast, Set beaver slide and catwalk. Set hanson tank. Rig up torque tube. Set welding shop. Set #3 Mud pump. Unload trailers. Move drillpipe. Set cuttings tank and MI unit. R/U mud manifold. 17:00 00:00 7.00 RURD RIG AF PJSM: R/U Top Drive and service loop. Inspect top drive extension continental valve for leaks (OK). Pump up hydraulic compensators. C/O saver sub to 4 -1/2" IF & grabber dies to 5 ". Repair bolt hole in bell guide. Accept rig @ 00:00 hrs. on 9/13/2008. 00:00 03:00 3.00 NUND BOPE AF PJSM: Cut & dress 20" conductor. Install 20" SLC X 21 -1/4" starter head & test to 300 psi for 10 min (OK). 03:00 05:00 2.00 RURD OTHR AF PJSM: Weld 2" valves on 20" conductor. R/U bails, elevators & 5" inserts. P/U 5" pipe handling tools. 05:00 06:00 1.00 NUND BOPE AF PJSM: N/U diverter. Report Date: 9/14/2008 Job Category: DRILLING 24 Hr Summary N/U & test diverter system (test witnessed by Lou Grimaldi, AOGCC). M/U 17 -1/2" cleanout asst'. Cleanout 20" conductor to 36'. P/U & stand back 80 jts 5" dp, 21 jts 5" hwdp &jars. Cleanout 20" conductor f/ 36' -106'. Drill 17 -112" rat hole f/ 106' -160'. Circ hole clean. POOH & LJD 17-1/2" bit. P/U & M/U 16" directional drilling assembly. Note: Spud well @ 02:00 hrs on 9/14/2008. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 13:00 7.00 NUND ROPE AF Continue N/U diverter system. Set 21 1/4 annular ,spool and 16" knife valve. Run 16" diverter line and level up. Nipple up flow and trip tank lines. Install kill line. 43:00 14:30 1.50 INSPCT RIG AF Function test mud pumps top driver carrier PLC controls.Inspect mast board and all keeper pins on torque tube. Check water air and low pressure mud lines. Calibrate PVT system and test. 14:30 16:00 1.50 TEST ROPE AF Function test Diverter gas alarms pvt and flow. Test witnessed by Lou Grimaldi AOGCC Called Tim Lawlor BLM 9/11 /2008 15:10hrs and gave notice 16:00 17:30 1.50 PULD BHA AF PJSM: P/U make up 17 1/2 bit and bit sub. Clean out conductor to 36'. (make rat hole to p/u drill pipe) 17:30 00:00 6.50 PULD DP AF PJSM: Drift P/U and stand back 80 jts 5" drill pipe and 21jts 5" HWDP and jars. x,:00 02 :00 2.00 CLNOUT CSG AF PJSM: Clean out 20" conductor f/ 3F-106'@ 475 gpm, 285 psi, 50 rpm, tq 1200 ft-lb, wob 0 -5 klb. i` `00 03:30 1.50 DRILL ROT AF Drill 17 -1/2" rat hole f/ 106' -165' for directional tools @ 480 gpm, 300 psi, 77 rpm, tq 1300 ft-lb, wob 2 -5 klb. Spud well @ 02:00 hrs. on 9/1412008. ART: 1.0 hrs. 03:30 04:00 0.50 PULD BHA AF Circ hole clean. Monitor well. POOH. L/D 17 -1/2" bit. 04:00 06:00 2.00 PULD BHA AF PJSM: P/U & M/U 16" bit, 8" mud motor, pony collar, 15 -3/4" string stab, MWD, (2) NMDC's & shock sub. www.peloton.com Report Printed: 11/2/2009 • marathon Operations Summary Report M ARATH Oil Company Well Name: BEAVER CREEK 19 Casing Flange Elevation (ft) Ground Elevation (ft) KB- Casing Flange Distance (ft) KB- Ground Distance (ft) Spud Date Rig Release Date 158.00 21.00 9/1402008 1/14/2009 Daily Operations Report Date: 9/15/2008 Job Category: DRILLING 24 Hr Summary M/U 16" directional assembly. Drill f/ 160' -180'. Unplug flowline. Drill 180- 1257'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP BHA AF Continue P/U M/U 16" BHA 07:00 07:30 0.50 DRILL ROT AF Drill 16" surface hole f 160 -183' Drill Boulders Gravel and large coals Flow line packed off, Bell nipple over flawed into cellar( flow line jets were running ). Note lost 35bbls to hole. 450gpm 650psi. ART: 0.5 hrs. 07:30 09:00 1.50 CIRC MUD TA MSFL Flow line packed off due to gravel and large coals. Flush out flow line and clear up. 09:00 09:30 0.50 DRILL ROT AF Drill 16" surface hole f 183 -210' Drill boulders, Gravel and coal, Flow line packed off500gpm 750psi. Note stabilizer and bit getting hung up on boulders falling into hole. Work and free up 25 -35k over pulls to free pipe 15bb1 loss to hole. ART: 0.5 hrs 09:30 10:30 1.00 CIRC MUD TA Iv1SFL Flow line packed off with gravel and coal chunks, flush out and clean. Make up hoses to run into flow line to keep gravel flushed out. flow line jets running at all times 10:30 18:00 7.50 DRILL ROT AF PJSM: Drill 16" surface hole f/ 210' -579' @ 500 GPM, 850 psi, wob 5 -10 klb, 53 rpm, tq 1000 ft-lbs, p/u 50 klb, s/o 45 klb, rot wt 48 klb. ART: 4.3 hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 16" vertical hole f/ 579'-877'@ 525 GPM, 1050 psi, wob 5 klb, 50 rpm, tq 1000 ft -Ibs, p/u 60 klb, s/o 57 klb, rot wt 60 klb. ART: 4.0 hrs. No losses to formation. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 16" vertical hole f/ 87T-1257'@ 600 GPM, 1350 psi, wob 5 -10 klb, 50 rpm, tq 1200 ft-lbs, p/u 65 klb, s/o 60 klb, rot wt 65 klb. ART: 4.4 hrs. No losses to formation. Report Date: 9/16/2008 Job Category: DRILLING 24 Hr Summary Drill 16" vertical hole f/ 1257'- 1507'. Pull 2 stds to 1382'. Repair grabber & compensator on top drive. RIH & con't drill f/ 1507'- 2517'. Circ hole clean. POOH for wiper trip. Ops Trouble Start Time End Time Dur(hrs) Ops Cade Activity Code Status Code Comment 06:00 09:30 3.50 DRILL ROT AF Drill vertical 16" surface section f 1257'- 1507' 635gpm 1475psi wob 10- 20k1b. 65rpm p/u 67k1b s/o 65k1b. rot wt. 65k1b. ART 2.4 hrs. No gain/ loss 09:30 13:00 3.50 REPAIR RIG TA MSTD Pipe handler Gabber Block Broken, on top drive Pull 2 stands to 1382' Replace Pipehandler grabber Cylinder assy and Compensator( off driller side of top drive). Rih to 1507' Note: Reroute hydraulic lines to grabber box cylinder. new grabber box cylinder incorrectly repaired . Replacement compensator leaking from top of cylinder. 13:00 18:00 5.00 DRILL ROT AF PJSM: Drill 16" vertical hole f/ 1507' -1950' @ 640 GPM, 1800 psi, wob 5 -25 klb, 50 rpm, tq 2500 ft-Ibs, p/u 78 klb, s/o 78 klb, rot wt 78 klb. ART: 3.8 hrs. No losses to formation. 18:00 00:00 6.00 DRILL ROT AF Drill 16" vertical hole f/ 1950'-2394'@ 640 GPM, 1900 psi, wob 5 -25 klb, 50 rpm, tq 3000 -5000 ft -Ibs, p/u 85 klb, s/o 85 klb, rot wt 85 klb. ART: 3.9 hrs. No losses to formation. Note: Pumped 30 bbl hi -vis sweep @ 2050' returning 200% cuttings increase over shakers. 00:00 02:00 2.00 DRILL ROT AF PJSM: Drill 16" vertical hole to 13 -3/8" casing pt. f/2394-2517'@640 GPM, 1900 psi, wob 5 -25 klb, 50 rpm, tq 3000 -5000 ft-Ibs, p/u 87 klb, s/o 87 klb, rot wt 87 klb. ART: 1.7 hrs. No losses to formation. 02:00 04:00 2.00 CIRC CFLD AF Note: Circulate hole clean. Dropped carbide bomb for hole caliper. Epoch system froze up @ 3200 stks. Con't circ while fix Epoch system. Drop another carbide bomb & circulated around. Hole showed to be in gauge. Monitor well (static). 04:00 06:00 2.00 TRIP WIPR AF PJSM: Wiper trip. POOH f/ 2517' -775' (SLM). No drill pipe depth correction. No hole problems. Report Date: 9/17/2008 Job Category: DRILLING 24 Hr Summary POOH to 154'. RIH to 2517' (wash and ream 1826'- 1889', wash and ream 2017' - 2079). Pump sweep and circ. clean. POOH to 1636'. RIH to 2517'. Circ. clean reduce MW 9.6+ to 9.5 +. Flow check POOH, L/D shock sub, bit and motor. R/U & run 61 jts. 13 -3/8" csg to 2510' @ 06:00 hrs. Ops Trouble Start Time End Time bur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CIRC MUD AF Cont. POOH 775' to 154'. Hole in good condition. No losses. www.peloton.com Report Printed: 11/2/2009 1 M arathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 09:30 2.50 TRIP DP AF RIH w /DP. Tag bridge @ 1826' wash and ream 1826'to 1889'. Cont RIH tag bridge @ 2017' wash and ream 2017' to 2079'. Cont. RIH to 2517'. No fill. 09:30 11:00 1.50 CIRC MUD AF Pump 50bbls high vis sweep. Circ. clean(CBUX2) 640gpm 1750psi 7ORPM large amount of clay across shakers. Sweep indicated 10% wash out. MW 9.6+ Dynamic losses LBPH. 11:00 11:30 0.50 TRIP DP AF Flow check(well static). POOH to 1636'. Hole in good condition. 11:30 12:30 1.00 TRIP DP AF PJSM. RIH to 2517'. No fill. Hole in good condition. 12:30 14:00 1.50 CIRC MUD AF Circ. clean(CBUX2) 640GPM 1650psi 7ORPM. Reduce MW 9.6+ to 9.5 +. 14:00 17:00 3.00 TRIP DP AF Flow check(well static) POOH rack back DP and HWDP. 17:00 19:00 2.00 TRIP BHA AF PJSM. UD shock sub and X/O's. Rack back CSDP's and MWD. UD stabilizer, bit and motor. Large amount of clay on bit and stabilizers. Small amount of galling found on 2 sets of monel connections. 19:00 22:30 3.50 KURD CSG AF PJSM: Rig up to run 13 -318" csg. Static fluid losses 1 BPH. 22:30 06:00 7.50 RUN CSG AF PJSM w/ Weatherford casing crew. P/U 13 -3/8" shoe track & check floats (ok). Run total 61 jts 13 -3/8 ", 68 ppf, J- 551L -80, BTC casing to 2510' @ 06:00 hrs. Float shoe set @ 2510.0'. Top of float collar set @ 2464.1'. Daily Operations Report Date: 9/18/2008 Job Category: DRILLING 24 Hr Summary RID CSG tools. R/U & run 5" inner cmt string. Sting into floar collar. CBU. Transfer mud to Hansen tank while hold pre- cement job safety meeting. Test cmt lines to 2500 psi. Cement 13 -3/8" casing in place. Unsting & circ out excess cmt. POOH & UD stab -in tool. Hotbolt diverter stack & prep to N /D. Empty & clean pits. Make rough on 13 -3/8" csg. Flush diverter stack. Finish N/D & move out diverter stack. Remove starter head. Make final cut on 13 -318" casing & dress off. Install multibowl wellhead. Note: Shoe set @ 2510'. Top of float collar set @ 2464'. CIP @ 14:30 hrs. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 RURD CSG AF PJSM. R/D CSG tongs and tools. C/O to DP bales and elevators. R/U false rotary for running cement DP inner string. 07:30 10:00 2.50 TRIP DP AF M/U cement stinger and 5 "X 5' DP pup. Attach centralizer on first tool joint. Cont. RIH w/5" DP stands from derrick. M/U circulating head on 5" DP and circulation sub for 13 3/8" CSG. Sting into 13 3/8" float collar @ 2464'. P/U 65K 3/0 65K. 10:00 11:00 1.00 CIRC MUD AF R/U cement hose and CBU for 13 3/8" CSG 200GPM 275psi. 11:00 12:00 1.00 CIRC MUD AF PJSM for cement job. Transfer mud from pits to hansen tank to make room for cement job. PJSM with crew coming on for cement job. 12:00 14:30 2.50 PUMP CMT AF Pump 40bbls Mud clean 2 w /rig pumps at 5BPM. Pump 2bbls water w/BJ unit. Test lines to 2500psi. Valve on cement line leaked. C/O valve and retest to 2500psi OK. Mix and pump 869sxs Type 1 cement w/22 %LW -6, 20 %MPA -1 , 2 %CaCl2, 1%SMS, .3 %CD -32, .05% Static free and 1 gphs FP -6L to yield 384bb1s 12ppg slurry. Cement returned to surface w/330bbls cement pumped(50 %excess) Displace w137.5bbls 9.6ppg mud(5bbls short of DP displacement). 100% returns 50bbls cement to surface. Test floats held OK. CIP@ 14:30hrs. Cement mixed and pumped at 6BPM avg and displacement at 6BPM avg. 30 16:30 2.00 PUMP CMT AF PJSM. R/D cement line and sting out of float collar. UD two joints 5" DP. Drop DP wiper dart and M/U cement line and pump out dart. 16:30 18:30 2.00 TRIP DP AF POOH w /cement stinger & lay down. 18:30 00:00 5.50 WAITON CMT AF PJSM: Empty & clean mud pits. All while prep diverter stack to nipple down. UD mouse hole. Remove knife valve & diverter line. Make rough cut on 13 -3/8" casing & lay down cut jt. Change out alternator belt on #2 carrier engine. 00:00 03:00 3.00 NUND ROPE AF PJSM: Rig up drill pipe elevators. Flush diverter. Cont N/D diverter system. Move diverter stack out of cellar & mount on stand. 03:00 03:30 0.50 NUND WLHD AF PJSM: Remove 21 -1/4" slip lock starter head. :30 04:30 1.00 NUND WLHD AF PJSM: Cut 20" conductoer. Make final cut on 13 -3/8" casing & dress out same. 04:30 06:00 1.50 NUND WLHD AF _PJSM: Install 13-3/8" Sliplock X 13 -5/8" 5M multibowl wellhead. Report Date: 9119 ?2008 Job Category: DRILLING 24 Hr Summary Install 13 318 "slip -lock X 13 5/8" 5M multibowl wellhead and test to 1600psi /10min. N/U 36" spacer spool. N/U 13 518" 5M A, Rd, S BOP stack. Repair hydraullic test pump. Service rig, top drive & carrier. Strap 5" drill pipe. Mix mud. Repair Epoch RPM sensor on top drive. R/U &test BOPE f1250/3500 psi f/ 10 min. R/U & test 13 -3/8" casing to 1500 psi f/ 30 min. BOP test witnessed by Lou Grimaldi (AOGCC). www.peloton.com Report Printed: 11/2/2009 1 /1k Marathon Operations Summary Report MARATHON ;, Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 NUND WLHD AF Cont. to Install 13 3/8" slip lock X 13 5/8" 5M Vetco multibowl wellhead. Test seals to 1600psi 10min. 07:00 09:00 2.00 NUND BOPE AF N/U 13 5/8" 5M X 36" spacer spool. Install NCR to choke side of stack. 09:00 18:30 9.50 NUND BOPE AF PJSM. Move in and N/U 13 5/8" 5M A, Rd, S BOPE stack. While N/U begin to mix new Flopro mud. 18:30 20:30 2.00 REPAIR EQIP TA MSBO Troubleshoot & repair hydraulic test pump. Hydraulic hose connected wrong. 20:30 22:00 1.50 SERVIC RIG AF PJSM: Service top drive & carrier. Strap 5" drill pipe. Repair Epoch RPM sensor on top drive. All while waiting on State Man. 22:00 04:30 6.50 TEST BOPE AF PJSM: Make up test joint set test plug. Test ROPE and all related components 250/3500 psi f/ 10 min. Test upper & lower top drive valves. Perform accumlator drawdown test. Test all gas alarms. Witnessed by Lou Grimaldi (AOGCC). Gave notice to Tim Lawlor (BLM) @ 17:00 hrs on 9/17/2008. Repaired leak on #12 valve on choke manifold. Outside kill (line valve leaked. Function tested valve & retest (OK). Gray lock on choke line leaked. Tighten up & retest (OK). R/D test equipment. 04:30 05:00 0.50 RUNPUL WBSH AF Install wear bushing. 05:00 106:00 1.00 TEST BOPE AF R/U & test 13 -3/8" casing to 1500 psi f/ 30 min (OK). R/D test equipment. Daily Operations Report Date: 9/20/2008 Job Category: DRILLING 24 Hr Summary P/U 90 JTS 5" DP & stand back. P/U 12 -1/4" directional asst'. Dressed galled 8" NMDC threads. RIH while P/U 50 jts 5" DP. Circ & condition mud. Drill out cmt & float equipment. Clean out 16" rat hole to 2517. Drill 20' new hole. CBU. Displace hole w/ new 8.9 ppg flo -pro mud system. Perform FIT (EMW =12.0 ppg). Drill 12 -1/4" hole to 2746'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 13:00 7.00 PULD DP AF PJSM. P/U 90 joints 5" DP and rack back in the derrick. 13:00 15:00 2.00 PULD BHA AF PJSM. P/U 12 1/4" PDC bit and directional BHA. 15:00 16:30 1.50 TRIP BHA TA MDDS Dress galled monel threads. 16:30 17:30 1.00 TRIP DP AF RIH W /5" HWDP from derrick. Test MWD. 17:30 19:30 2.00 TRIP DP AF P/U 50 jnts 5" DP while RIH to 2437'. Bit took weight. 19:30 21:30 2.00 CIRC MUD AF Break circulation. Coagulated mud with cement chunks returning over shakers. Cony circulate & condition mud until clean. 21:30 22:30 1.00 DRILL CMT AF Wash down f/ 2437' until tag cement @ 2459'. Drill out cement & float equipment f/ 2459'- 2510'. Clean out 16' rat hole f/ 2510'- 2517'. Pump @ 435 gpm, 950 psi, wob 0 -5 klb, 45 rpm, tq 2k ft-Ibs. 22:30 23:00 0.50 DRILL ROT AF Drill 20' new 12 -1/4" hole for FIT f/ 2517'- 2537'. Pump @ 435 gpm, 950 psi, wob 5 -10 klb, 45 rpm, tq 2k ft-Ibs. ART: 0.2 hrs. 23:00 01:00 2.00 CIRC MUD AF Pump 30 bbl spacer. Pump 30 bbl hi -vis sweep. Displace hole w/ new 8.9 ppg flo -pro mud system. 01:00 02:00 1.00 TEST LOT AF Perform F.I.T. @ 2510' TVD with 8.9 ppg mud wt & 405 psi. EMW = 12.0 psi. Pressure slowly bled off to 320 psi. 02:00 06:00 4.00 DRILL ROT AF Drill 12 -1/4" directional hole f/2537'- 2746'. Pump @ 510 gpm, 850 psi, wob 5 -15 klb, 52 rpm, tq 1 -2k ft -Ibs, p/u 88 klbs, s/o 85 klbs, rot wt 88 klbs. ART: 1.9 hrs, AST: 0.6 hrs. Report Date: 9/21/2008 Job Category: DRILLING 24 Hr Summary Drill 12 -1/4" hole f/ 2746'4140'. CBU & con't circ until hole clean. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" directional hole F/2746' to 3110'. 600GPM 1000psi 7ORPM WOB= 5- 6K TQ= 3000ft -Ib P /U= 100KS/0 =100K ROT =100K ART= 2.4hrs AST= 1.5hrs 12:00 18:00 6.00 DRILL ROT AF PJSM: Drill 12 1/4" directional hole F/3110'to 3490'. 600GPM 1200psi 7ORPM WOB =4 -6K TQ= 3000ft -lb P /U =107K S/0 =107K ROT =107K ART= 1.5hrs AST= 2.6hrs 18:00 00:00 6.00 DRILL ROT AF Drill 12 -1/4" directional hole f/ 3490' -3855' w/ 605 gpm, 1350 psi, wob 5 -15 klb, 70 rpm, tq 2 -4k ft-lbs, p/u 112 klbs, s/o 112 klbs, rot wt 112 klbs. ART: 0.7 hrs, AST: 3.1 hrs. 00:00 05:00 5.00 DRILL ROT AF PJSM: Drill 12 -1/4" directional hole f/ 3855' -4140' w/ 605 gpm, 1450 psi, wob 5 -15 klb, 75 rpm, tq 2 -4k ft -Ibs, p/u 117 klbs, s/o 117 klbs, rot wt 117 klbs. ART: 1.7 hrs, AST: 1.5 hrs. 05:00 06:00 1.00 CIRC MUD AF CBU & cont circ until hole clean. Circ @ 605 gpm & 75 rpm's. www.peloton.com Report Printed: 11/2/2009 1 Marathon Operations Summary Report N Oil Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 9/22/2008 Job Category: DRILLING 24 Hr Summary Circ. hole clean. POOH to CSG shoe. Service rig. Shim top drive slide. RIH to 4140'. Drill F/4140'- 4962'. Circ & conditon mud for losses while build volume. Drill 12 -1/4" hole f/4962'- 5340'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 CIRC MUD AF Cont. to circ. hole clean(CBUX2) 610GPM 1300psi 7ORPM. 06:30 08:30 2.00 TRIP DP AF PJSM. Flow check(1 BPH static losses) .POOH to CSG shoe @ 2510'. Hole in good condition. 08:30 09:30 1.00 SERVIC RIG AF PJSM: Service rig. Shim top drive slide. 09:30 '10:30 1.00 TRIP DP AF RIH to 4140'. Hole in good condition. Static losses 1 bph. No fill on bottom. 10:30 12:00 1.50 DRILL ROT AF Drill 12 1/4" tangent hole F/4140' to 4267' 600GPM 1300psi 72RPM 5 -7K WOB 3 -4K Ft-lb TO P/U112K S/0112K Rot ART =1.1 hrs AST =Ohrs. 12:00 18:00 6.00 DRILL ROT AF PJSM: Drill 12 1/4" tangent hole F/4267' to 4709' S60GPM 1250psi 72RPM 5 -10 WOB 4 -5K Ft-lb TQ ART= 2.9hrs AST = .7hrs. Losing fluid to formation @ 5 -10 bph. Static losses 3 -4 BPH. Control drilling @ 125 fph. 18:00 22:30 4.50 DRILL ROT AF Drill 12 -1/4" tangent hole section f/ 4709'- 4962'. Dynamic losses 15 -20 bph. Static losses 1 bph. Mud wt 9.4+ ppg. Reduced ROP to 60 -80 fph & flow rate f/ 550 to 500 gpm in attempt to control fluid losses. Start running centrifuge van. Adding 30 ppg CaCo2. Start adding 2 ppb Mix II. Press 1100 psi, wob 5 -15 klb, 75 rpm, tq 3 -4k ft -Ibs, p/u 132 klbs, s/o 120 klbs, rot wt 127 klbs. ART: 3.0 hrs, AST: 0 hrs. 22:30 00:00 1.50 CIRC MUD AF CBU @ 500 gpm & cont circ until hole clean. Annulus unloaded w/ 2 X cuttings of 100% clay. Reduce flow rate to 450 gpm & cont circ while condition mud for losses & build mud volume. Slugged 5 ppb Mix II med & fine. Batch building mud volume with increased concentrations of 30 ppb CaCo2 to 30 ppg, 5 ppb Mix II fine & med, 5 ppb G -Seal. Mud wt reduced to 9.2 ppg. Losses completely stopped. 00:00 06:00 6.00 CIRC MUD AF PJSM: Drill 12 -1/4" tangent hole f/ 4962' -5340' w/ 500 gpm, 1250 psi, wob 5 -15 klb, 75 rpm, tq 4 -5k ft-Ibs, p/u 140 klbs, s/o 125 klbs, rot wt 135 klbs. ART: 4.4 hrs, AST: 0 hrs. Control drilling @ 80 -100 fph in attempt not to load up the annulus. Dynamic losses under control. Hole does take occasional 3 -4 bbl gulp. No static losses. Report Date: 9/23/2008 Job Category: DRILLING 24 Hr Summary Drill 12 1/4" hole F/5340' to 5404'. CBU. Drill f/ 5404'- 5B45'. CBU & cont circ until hole clean. Maker wiper trip from f/ 5845'- 2510'. Service rig. RIH. Drill 12 -1/4" drop section @ 5971'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 DRILL ROT AF Drill 12 1/4" tangent hole F/5340' to 5404'. ART =.7hrs AST =Ohrs 500GPM 1150PSI 7ORPM gas unit increased to 250 units. Mixing mud batches w/2PPB mix 2 Med and fine(total 4PPB), 5PPB G -seal, 1OPPB 10/20/40 CaCo3(total 30PPB) mud batches weighing 9.35PPG. Running the centrifuge when mud reaches 9.4PPG. 07:00 08:00 1.00 CIRC MUD AF Flow check (static losses 2- 3BPH).Circ. clean(CBUX1). 500GPM 7ORPM Max gas 252units. Dynamic losses 5- 10BPH. 08:00 12:30 4.50 DRILL ROT AF Drill 12 1/4" tangent hole F/5404' to 5597' 500GPM 1150psi 7ORPM 4 -5K ft-lb TO P/U 147K 5/0 125K ROT 138K ART= 2.0hrs AST =.1 hrs. Circ. and trouble shoot shaker/Q. Reset relay switch in control box. 12:30 17:00 4.50 DRILL ROT AF PJSM. Drill 12 1/4" tangent hole F/5597'to 5845' 500GPM 1200psi 7ORPM 6 -8K Ft -lb TQ P/U 155K 5/0 125K ROT 145K ART= 2.0hrs AST =.6hrs Static losses 3 -4BPH Dynamic losses 5- 10BPH. Running centrifuge when MW is above 9.4ppg. 17:00 19:00 2.00 CIRC MUD AF Circ. clean (CBUX2) 500GPM 1200psi 7ORPM. Mix into active 10SXS Mix 2 fine. 10SXS Mix 2 med, 10SXS CaCo3 20, 10SXS CaCo3 40. 19:00 23:00 4.00 TRIP WIPR AF Flow check (static losses 3- 4BPH). POOH f/5845'- 2510'. Hole pulled slick. No problems pulling out. 23:00 00:00 1.00 SERVIC RIG AF PJSM: Service rig. Lubricate top drive, blocks, crown, spinners, carrier drive lines & check oil in carrier engines. Monitor well (static losses 4 bph). 00:00 02:30 2.50 TRIP WIPR AF PJSM: RIH slowly ti 2510'- 5783'. Wash last std to bottom f/ 5783' -5845. Hole slick. No problems running in. No fill on bottom. Losing fluid @ 4 bph. No trip gas. www.peloton.com Report Printed: 11/2/2009 • • MAI L Marathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 02:30 06:00 3.50 DRILL ROT AF PJSM: Drill 12 -1/4" drop section f/ 5845' -5971' w/ 505 gpm, 1330 psi, wob 5 klb, 75 rpm, tq 5 -6k ft-Ibs, p/u 155 klbs, s/o 135 klbs, rot wt 146 klbs. ART: 1.3 hrs, AST: 1.0 hrs. Dynamic losses 10 bph. Static losses 4 bph. Daily Operations Report Date: 9/24/2008 Job Category: DRILLING 24 Hr Summary Drill 12-1/4" drop section ft 5971 6800'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/5971' to 6222' ART= 1.8hrs AST= 2.5hrs 500GPM 1200psi 7 -8 K ft-lb TQ P/U 165K S/O 137K ROT 150K Building batches of mud w2PPB Mix 2 fine 2PPB Mix 2 med(total 4PPB), 5PPB G -seal, 1OPPB 20/40/250 CaCo3(total 3OPPB). Base MW 9.35 PPG running centrifuge when MW 9.45ppg Static losses 3 -4BPH Dynamic losses 5- 10BPH. 12:00 18:00 6.00 DRILL ROT AF PJSM. Drill 12 1/4" drop section F/6222' to 6478' ART= 2.0hrs AST= 1.9hrs 500GPM 1250psi WOB 5 -10K 70 RPM 8 -10K Ft -lb TQ P/U 165K S/0 140K ROT 155K. Dynamic losses 5 -10BPH Static losses 3 -4BPH. Mud wt 9.4+ ppg 18:00 00:00 6.00 DRILL ROT AF Drill 12 -1/4" drop section (/6478'- 6667'w/ 505 gpm, 1300 psi, wob 5 -15 klb, 75 rpm, tq 5 -8k ft -Ibs, p/u 170 klbs, s/o 140 klbs, rot wt 155 klbs. ART: 1.9 hrs, AST: 2.8 hrs. Dynamic losses 5 bph. Static losses 2 -3 bph. Centrifuge running. Mud wt 9.4+ ppg. 00:00 06:00 6.00 DRILL ROT AF PJSM: Drill 12 -1/4" drop section f/ 6667 505 gpm, 1500 psi, wob 5 -15 klb, 75 rpm, tq 5 -8k ft-Ibs, p/u 176 klbs, s/o 145 klbs, rot wt 160 klbs. ART: 1.6 hrs, AST: 2.8 hrs. Dynamic losses 5 bph. Static losses 2 bph. Centrifuge running. Mud wt 9.5 ppg. Report Date: 9/25/2008 Job Category: DRILLING 24 Hr Summary Drill 12 1/4" drop section F/6800'to7344'Mix LCM for lost circ. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Cade Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/6800' to 6939' ART= 1.3hrs AST =3hrs 500GPM 1400psi 7ORPM 9 -10K ft-lb TQ P/U 190 K S/O 143K ROT162 K. Building batches of mud w/2PPB Mix 2 fine 2PPB Mix 2 med(total 4PPB), 5PPB G -seal, 1OPPB 20/40/250 CaCo3(total 3OPPB). Base MW 9.35 PPG running centrifuge continuously to maintain MW< 9.Sppg Static losses 3 -4BPH Dynamic losses 5- 10BPH. Maintaining lubricant concentration @ 4 %. 12:00 18:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/6939' to 7085' ART= 1.3hrs AST= 2.Shrs 500GPM 1500psi 7ORPM 8- 13Kft-lb TQ P/U 190K S/O 143K ROT 162K. Building batches of mud w/2PPB Mix 2 fine 2PPB Mix 2 med(total 4PPB), 5PPB G -seal, 1OPPB 20/40/250 CaCo3(total 3OPPB). Base MW 9.35 PPG running centrifuge continuously to maintain MW< 9.Sppg Static losses 3 -4BPH Dynamic losses 5- 10BPH. Maintaining lubricant concentration @ 4 %. Lost one of two motors on shaker#2 @ 12:30hrs. 18:00 00:00 6.00 DRILL ROT AF Drill 12 1/4" drop section F/7085' -7250' ART =2.6 AST =1.9 500 GPM 70 RPM, 8 -13K Tq., P /U =200k Dn. wt. =145K, Rt wt. =172K, Slugged 8 sx.Mix 2, Fine and Med., 20 sx. Baracarb 600, 40 sx. S.C.2, 10 sx. G -seal, spread out over 2 hours. Dynamic losses down to 4 -8 bph. MW. =9.6 ppg. Cent. running to cut wt.Max. Gas =124 units 00:00 06:00 6.00 DRILL ROT AF Drill 12 12" drop section F 7250' -7344' ART =1.2 AST =3.4, 500 GPM 70 RPM, 10 -13K Tq., P/U wt. =200k, Dn. wt. =150K Rt wt. =172k Bit wt.= 8- 15k,Dynamic losses 4 -8 bph Running cent.Mud wt =9.6# Max. gas =124 units Report Date: 9/26/2008 Job Category: DRILLING 24 Hr Summary Drill F/7344' drop section to 7462'. Circ. clean. Spot LCM pill. POOH to CSG shoe. Service rig. Slip and cut drilling line. RIH to 7462'. Circ. clean. Ops Trouble Start Time End Time Dur( Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 DRILL ROT AF Drill 12 1/4" drop section F/7344' to 7462' ART= 3.7hrs AST =Ohrs 500GPM 1500psi 75RPM 10 -15K ft-lb TQ P/U 200K S/0 150K ROT 175K. Building batches of mud w2PPB Mix 2 fine 2PPB Mix 2 med(total 4PPB), 5PPB G -seal, 1OPPB 20/40/250 CaCo3(total 3OPPB). Base MW 9.35 PPG running centrifuge continuously to minimize MW. Static losses 3 -4BPH Dynamic losses 5- 10BPH. Maintaining lubricant concentration @ 4 %. MW www.peloton.com Report Printed: 11/2/2009 0 • Marathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 10:30 14:00 3.50 CIRC MUD AF Circ. shakers clean(CBUX3) 500GPM 1500psi 7ORPM. Spot 40bbI LCM W/20ppb CaCo310,20,40,250(total BOPPB), 5ppb G -seal, 2.5ppb Mix 2 med and fine(total 5ppb) pill F /4300'to 4700'. 14:00 18:00 4.00 TRIP DP AF PJSM. POOH to 5868'(tight @ 7153, 7122, 7117, 6876, 6833, 6683, 6632, 6610, 6558, 6510, 6494, 6431, 6261, 6253, 6245, 6240, 6204, 6170, 6100, 6080, 6044, 6026, 6016, 6001, 5992, 5980, 5970, 5914, 5911, 5868). 18:00 21:00 3.00 TRIP _ DP AF Cont. POOH to CSG shoe @ 2510'. 21:00 22:00 1.00 SLPCUT DLIN AF PJSM; Slip 33' drilling line, adjust brakes.Static losses down to 1.5 BPH 2200 22:30 0.50 SERVIC RIG AF PJSM; Service rig and equip. 22:30 03:30 5.00 TRIP DP AF PJSM; RIH F/ 2510' to 7462'. Ream tight hole from 5815'- 5855', also 6554'- 6594'.Up wt. =200k dn. wt. =120k rt wt. =177K Max gas =32 units 03:30 05:30 2.00 CIRC MUD AF Circ. shaker clean 330 gpm, 700 psi, Circ. rate reduced due to one shaker being down. MW =9.5+ running cent. 05:30 06:00 0.50 CIRC MUD AF Cont. to circ. w/5000PM 7ORPM 1450psi. Dynamic losses 5BPH. Daily Operations Report Date: 9/27/2008 Job Category: DRILLING 24 Hr Summary Circ. clean. POOH to 5750'. RIH to 7462'. Circ. clean. POOH. UD BHA.R /U Loggers, Run Quad combo,Tagged @7456',R/D Loggers Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 CIRC MUD AF Circ clean(CBUX1) 500gpm 72RPM 1450psi. MW 9.6 +. Running centrifuge. Dynamic losses 5BPH. 07:00 09:00 2.00 TRIP DP AF PJSM. Flow check static losses 2 -3BPH. POOH to 5782'(tight @ 7335' and 7226). Flow check. Static losses 2 -38PH. 09:OC: 10:30 1.50 TRIP DP AF RIH w /DP to 7462'. No tight spots or bridges. Running centrifuge to lower MW in pits to 9.5 +. 10:30 12:00 1.50 CIRC MUD AF Circ. clean(CBUX1) 500GPM, 7ORPM, 1450psi. Dynamic losses 5BPH. Running centrifuge current MW 9.6 +. I 12:00 19:00 7.00 TRIP DP AF Flow check static losses 2 -3BPH. Pump dry job and drop 3" rabbit,POOH(tight @ 7335' and 7226' 25K over). Running centrafuge to lower MW to 9.5+ in pits.SLM correct on trip out. 19:00 22:00 3.00 PULD BHA AF PJSM; POOH with 5" HWDP, Lay down CSDP, stab, pony collar, MWD, motor and bit.Clear floor. 22:00 04:30 6.50 LOG OH AF PJSM; Rig up Weatherford wireline,Run Quad combo, Logging tools tagged at 7456'.Rig down. Satic losses 1 -2BPH. 04:30 06:00 1.50 LOG OH AF PJSM; Calibrate and rig down wireline. Report Date: 9/28/2008 Job Category: DRILLING 24 Hr Summary P/U 12 1/4" bit and BHA.RIH, Circ. hole clean, POOH, Change rams, R/U to run 9 5/8 csg.pick up shoe track. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 TRIP BHA AF PJSM. M/U 12 1/4" bit, bit sub cleanout BHA. 06:30 11:30 5.00 TRIP ' DP AF RIH w/ 5" DP tag bridge @ 7428'. Wash to bottom @ 7462'. 11:30 13:00 1.50 CIRC MUD AF PJSM. Circ. clean(CBUX1) 500GPM 985psi. 75RPM 6500 ft-lb TQ. Dynamic losses 2 -3BPH. P/U 170K S/0 145K Rot 160K. MW 9.7PPG. Running centrifuge. 13:00 14:00 ' 1.00 SPOT PILL AF Flow check losses<1 BPH. Spot 50bbI 9.7PPG LCM pill w /15PP8 ea 2, 20, 250, 600 CaCo3(total 6OPPB), 2.5PPB ea Mix 2 Med and Fine(total 5PPB), 5PPB Pecan Nut plug, 5PPB G -seal from 4400' to 4800'. Pump dry job. 14:00 20:00 6.00 TRIP DP AF PJSM. POOH w/5" DP. Hole in good condition.UD Bit, bit sub. Cont. to centrifuge mud in pits down to a 9.55PPG. Losses 1BPH while POOH. 20:00 00:00 4.00 RURD CSG AF PJSM; Change bails, install fill up tool, change out rig tongs. Test run 9 5/8 csg. hanger. PJSM; Change out variable rams to 9 5/8 csg. rams. Attempt to test rams. Test failed. Incorrect size rams installed. 00:00 00:30 0.50 RURD OTHR TA MSOT PJSM. 0/0 upper rams to 9 5/8" rams. 00:30 01:00 0.50 TEST ROPE TA MSOT Test 9 5/8" CSG rams to 250/350Opsi 10min. 01:00 04:00 3,00 RURD OTHR AF PJSM. Adjust torque tube for spider elvators. Install circulation tool. 0/0 tong heads on manual tongs to ft 9 5/8" CSG. R/U weatherford CSG running tools and CSG tongs. 04:00 06:00 2.00 RUN CSG AF PJSM; Pick up and make up shoe track(Bakerlok). Static losses 1 BPH. www.peloton.corn Report Printed: 11/2/2009 • • ivii) Marathon Operations Summary Report M _,Oil Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 9/29/2008 Job Category: DRILLING 24 Hr Summary Cont. to MWU and Bakerlok shoe track. Circ. shoe track and check floats. Discovered bell nipple had dropped to low to make contact with circ. housing below rotary table. Strip out short bell nipple and replace with a longer bell nipple. Cont. to run 9 5/8" CSG and land CSG in on hanger. CSG shoe @ 7447'. Circ. CSG. Cement 9 5/8" CSG. Back out landing joint and LJD. Ops Trouble Start Time End Time Dur(hrs) OpsCode Activity Code Status Code Comment 06:00 06:30 0.50 RUN CSG AF Cont. M/U 9 5/8" shoe track and Bakerlok. Circ. through shoe track. Discovered the bell nipple had dropped to low to make contact with the circulation housing below the rotary table. 06:30 08:30 2.00 RUN CSG TA MSOT PJSM. Strip out the short bell nipple and replace it with a longer bell nipple. 08:30 12:00 3.50 RUN CSG AF Cont. to run 9 5/8" 4OPPF L -80 Butt CSG to 1896'. 12:00 13:30 1.50 RUN CSG AF PJSM. Cont. to run 9 5/8" CSG to 13 3/8" CSG shoe @ 2510'. 13:30 14:00 0.50 CIRC MUD AF Circ. B/U @ CSG shoe. 188GPM 337PSI. 14:00 18:00 4.00 RUN CSG AF Cont. to run 9 5/8" CSG to 5850'. 18:00 20:00 2.00 RUN CSG AF Cont. to run 9 5/8" CSG F/58507418'. 20:00 20:30 0.50 RUN CSG AF Pick up landing joint, circ. down to 7447' 200GPM =520 psi Up wt. =285K do wt. =210K. No issues getting to bottom. Losses =25 bbls running casing in hole 1.75 BPH. CSG shoe @ 7447' CSG FC @ 7368'(total 184 joints run). 20:30 22:30 2.00 CIRC MUD AF PJSM;Circ. hole clean, Rig down csg. tongs and equip. 22:30 01:00 2.50 CIRC MUD AF PJSM; Circ. hole clean,Rig up cmt. hd. Batch mix 200 bbis 10.5PPG cement. 01:00 02:30 1.50 PUMP CMT AF PJSM; Pump 3 bbis. water, test lines to 2500 psi,pum bbis seal bond spacer@10# ppg. Drop bottom plug. Mix and pump 4 xs class "G" cement w /15% BA -90, 1% CD -32, .5% SMS, 1.2% 63, 47% LW -6, .5% R-3..05% S free and 1GPHS FP -6L to yield 204BBLS 10.5PPG slurry. Tail in with 6 0s class "G" cement w/1.2 %BA -56, .4% CD -32, .5% EC -1, .2% SMS, .3, 3% KCL, .05% Static Free, and 1 GPHS FP -6L to yield 34bbls 15.8 slurry. Drop top plug and kick out with 5 bbls. water from the BJ unit. 02:30 05:00 2.50 PUMP CMT AF Switch to rig pumps and displace cement with 557 bbls 9.6PPG mud. Bumped plug w /1000psi over last displacement pressure. Lost 15 bbis. mud during displacement. CIP @05:00hrs. Bleed off pressure and check that floats hold OK. 05:00 06:00 1.00 RURD CMT AF PJSM; Rig cement head down, back out and lay down landing joint. Report Date: 9;302008 Job Category: DRILLING 24 Hr Summary LJD CSG tools. C/O bales and elevators. Set 9 5/8" pack -off and test.Problems with pack off,change seals four times, last test held 5000 psi -10 min.Test BOP,Test csg.,P /U BHA , P/U 50 Jts . 5" DIP RIH. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 RURD CSG AF PJSM. LJD spider elvators. Remove long bales. RID CSG fit up tool. Install short bales and DP elevators. Adjust torque tube for handling DP. 08:00 10:30 2.50 TEST WLHD AF Install 9 5/8" pack -off assy. Energize seals and test pack -off to 5000psi. Test failed. 10:30 12:30 2.00 TEST WLHD TA MSWH Retrieve pack -off asst'. Inspect and find the upper p -seal had failed. Change p- seals. Install pack -off assy. Energize seals and seals failed. 12:30 14:30 2.00 TEST WLHD TA MSWH Retrieve pack -off asst'. Inspect and find the upper p -seal had failed. Change p -seals and metal split rings. Install pack -off assy. Energize seals. Test pack -off to 5000psi. Pressure built up to 5000psi and then bled off. 14:30 17:00 2.50 TEST WLHD TA MSWH Retrieve pack -off asst'. Inspect pack -off asst'. Install pack -off assy(completely different assy). Energize seals and test pack -off to 5000psi. Pack -off held 4800psi momentarily and then bled off. Attempt to energize seals a second time. Test pack -off to 5000psi. Test failed. 17:00 20:00 3.130' TEST WLHD TA MSWH Retrieve pack -off asst'. Inspect pack -off asst'. 0/0 P- seals.lnstall pack off. pump up top and bottom seals slowly,Test to 5000 psi for 10 min. Test good 20:00 21:00 1.00 TEST ROPE AF PJSM; Change out 9 5/8 csg. rams to variable rams.R /U test equip. 21:00 01:30 4.50 TEST ROPE AF PJSM; Test annular to 2500 psi,Test ROPE, 250 psi low -5 min. 3500 psi high -5 min. Clean out check valve and retest,passed. Test waived by Jim regg --- 9/29/08 @0800 01:30 02:00 0.50 TEST CSG AF PJSM; Test 9 5/8 -40# L -80 Csg to 1750 psi for 30 min. Test good. 02:00 04:30 2.50 PULD BHA AF PJSM; Pick up bit and directional BHA. 04:30 05:00 0.50 FLOW TEST AF Flow test MWD . www.peloton.com Report Printed: 1122009 • ( Ajk Marathon Operations Summary Report r rich Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 05:00 06:00 1.00 PULD DP AF PJSM; Pick up 5 "- 19.5# S -135, 4 1/2 IF Drill pipe RIH. Daily Operations Report Date: 10/1/2008 Job Category: DRILLING 24 Hr Summary Cont P/U 5" D /P, RIH f /derrick,T/7235', troubleshoot transmission on rig, Drill shoe track F/7367'- 7462', Drill f/7462'- 7484', FIT test 12.0 EMW, Drill from, 7484' - Cps Trouble Start Time End Tirne Dur Ors) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 TRIP DP AF Continue RIH with 8 1/8 directional drilling assy to 7350' and fill pipe 10:30 12:30 2.00 REPAIR RIG TA MSHS Trouble shoot #1 transmission shifter, Transmission not shifting out of 3rd gear. 12:30 14:30 2.00 TRIP DP AF RIH and tag up on float collar at 7367' Drill F/C 385gpm 1100psi 40rpm wob 5- 12klbs. Up wt 180kIbs s/o 145kIbs Rt.wt. 160kib (18 mins to drill out non rotating float collar) Continue drill out shoe track f 7368- 7446'. Clean out rat hole f 7448- 7462'. Drill new hole from 7462' -7484' 14:30 15:00 0.50 CIRC MUD AF Circulate B/U condition mud for FIT test 380gpm 1105psi 195spm. test mud weight 9.6 15:00 15:30 0.50 TEST LOT AF Preform Fit Test 9.6mw 880psi @ 7072ND = 12ppg EMW 15:30 06:00 14.50 DRILL ROT AF Directionaly drill 8 1/2 hole F- 7482'- 8460'Up wt. =210K, Dn wt. =145K, Rt wt. =176K Tq.= 10 -12, 80 RPM, Pump rate =470 GPM, No gains No losses Gas units 88 ART =8.9 AST =O Report Date: 10 /2/2008 Job Category: DRILLING 24 Hr Summary drill f/8460'- 9068', CBU, pump hi -visc sweep, POOH to shoe, RIH, CBU,pump sweep, POOH f/ logs Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL ROT AF Drill 8 1(2 hole f 8460'- 8879' 475gpm 1750psi web 10- 12k1b. p/u 215kib s/o 150klb tq 10- 12kIb.Rt wt 183k1b ART =4.7. 9.6 mud wt No gain loss Max gas 186units from 8555'. Run centrifuge van to maintain 9.6MW 12:00 15:00 3.00 DRILL ROT AF Drill 1/2 hole f 8879'- 9068' 475gpm 1800psi wob 10 -12kIb p/u 220 s/o 190 Rtwt 186. Tq 10 -12kIb ART= 2.6hrs 9.6mw 56 vis. No gain/ loss Max gas 126units. T/D Obtained at 1500hrs 10 -1 -2008 15:00 17:00 2.00 CIRC MUD AF Circulate B/U for MOC geo dept to confirm TD of 9068'. Circulate at 475gpm 1750psi . continue circulating, pump Hi vis sweep condition hole for wiper trip. 17:00 22:00 5.00 TRIP WIPR AF 'PJSM: Monitor well POH (wiper Trip ) f Back ream and circ F/799474447' Up wt. =220K Dn wt. =155K Rt wt. =190K tq. =9 -12K 22:00 22:30 0.50 SERVIC RIG AF PJSM; Serv. rig and equip.Monitorwell, No gains No losses 22:30 00:00 1.50 TRIP WIPR AF PJSM; RIH to 9018' -9068' No tight spots. 00:00 01:30 1.50 CIRC MUD AF PJSM:Circ. bottoms up.Build and pump 29 bbl. high visc.sweep. 01:30 03:00 1.50 TRIP DP AF PJSM; POOH f/9068' -7424' No tight spots,hole slick. SLM out. No gains No losses 03:00 06:00 3.00 TRIP DP AF Pump dry job,drop 2.875 rabbit. Cont. POOH f/7424' No gains No losses Report Date: 10/3 /2008 Job Category: DRILLING 24 Hr Summary POOH, Lay down BHA, Clear floor, R/U Weatherford wireline,R1H w/ Quad combo, Slip and cut drIg. line, RIHWith RFT, having problems with logs, start logging from top of hole,logging f/7685', Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP AF Continue POH f 2960'. No gain /Loss 08:00 09:01] 1.00 TRIP BHA AF PJSM ; Stand back HWDP and jars. Lay down monels,cross avers and MWD. Break out bit and LID motor. Note No correction on SLM 09:00 09:30 0.50 CLEAN RIG AF Clean and clear rig floor 09:30 15:30 6.00 LOG OH AF PJSM: rig up Weatherford wireline service logging tools. Load source run Quadcombo logging tools Hit bridge at 9010' work tools unable to pass. Log from 9010'to 7447' POH with Quad combo tools on E -line . Unload source and lay tools down. Wet static No gain /loss 15:30 17:00 1.50 CUT WIRE AF PJSM; Slip and cut drilling line. 153' total cut / 120' slipped. 17:00 20:00 3.00 LOG OH AF PJSM; Rig up Weatherford wireline, Make up RFT tools, RIH t/7400' wait on pick points. 20:00 00:00 4.00 LOG OH AF RIH t/ 8889' Start logging with RFT (/8889',8877' Tool not working at 8695' POOH.Inspect pads and clean tool. 00:00 06:00 6.00 LOG OH TA MDLG RIH Tool still not working at 8695', POOH to 7585' start taking pressure points from top of hole going down.Well static no gains no losses. www.peloton.com Report Printed: 11 /2/2009 • N Z Marathon Operations Summary Report 0i1 Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 10/3/2008 Job Category: DRILLING 24 Hr Summary Troubleshoot Iogs,Log RFT Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 LOG OH TA MDLG Continue RFT pressure logging. Unable to obtain pressures POH with t000l and clean up screen. RIOH with RFT tool. Attempt to take pressures with no success. POH and change out pad on RFT tool to smaller size. RIH 09:30 23:00 13.50 LOG OH AF Run RFT pressure logs, At 759076047842, 7846 ,8416,8437,8482,8676,8877,8889, Lay down logging tools.R/D loggers Report Date: 10/4/2008 Job Category: DRILLING 24 Hr Summary RIH with 8 112 bit,Clean out run Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 23:00 04:30 5.50 TRIP DP AF PJSM; RIH with 8 1/2 bit, Hole slick No Gain loss 04:30 06:00 1.50 CIRC MUD AF PJSM; Wash and ream f/8950' -9068' Up wt. =230K Dn. wt. =160K Rt wt. =190K Tq. =10K. Pump 210stks 410gpm 1650psi No Gains no losses. Hole slick. Run centrifuge initial mud weight 9.9 final Mw 9.6 +. Max B/U gas 103units Report Date: 1015t2008 Job Category: DRILLING 24 Hr Summary LID Drill pipe / BHA, Pull wear bushing, R/D rig floor, R/U weatherford, Expro, safety meeting,RIH,3 1/2 Excape modules and csg. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 17:30 11.50 PULD DP AF POH to 7447' stand back drillpipe.PJSM; Continue POH and lay down drillpipe f7447'. run 20 stands in hole and lay down. total of302jts layed down. No gain loss correct hole fill. Begin to clean pits. 17:30 18:00 0.50 RURD OTHR AF Pull wear bushing,Rig down all drillpipe handling tools and rig floor. 18:00 20:30 2.50 RURD CSG AF PJSM; C/0 bails and elevators, Rig up to run 3 1/2 excape casing .Rig up fill up line. 20:30 21:30 1.00 TEST ROPE AF PJSM; Rig up test equip., test floor valve, variable rams with 3 1/2" pipe, 250 psi low, 3000 psi high.for 5 min.Rig down test equip. 21:30 22:00 0.50 SAFETY MTG AF PJSM; Hold safety meeting with all vendors involved in running Excape. 22:00 06:00 8.00 RUN CSG AF RIH with shoe track, check floats, and pick up, seven modules, three control lines and one sacrificial line, Circ. thru modules, cont. RIH with 3 1/2" EUE 9.5# L -80 csg. No Gains No losses . Ran 80jts, 3000' at 0600hrs Report Date: 10/6/2008 Job Category: p q rY : DRILLING 24 Hr Summary RIH w/ Excape,CBU, R/U Expro, Log guns on depth, Pump cmt., Bump plug @2240,Flush lines R/D Cmt, WOC, Nipple down Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 15:30 9.50 RUN CSG AF Continue running 3 1/2 casing with excape system f 3000'. to 9038.2' No gain loss correct displacement. Up wt. 105klb D/N wt. 80kIb Ran Total of 278jts with 7 Modules, 3 control lines and 870bands. 15:30 16:30 1.00 CIRC MUD AF Circulate B/U 200gpm 758psi at 9038' No Gain loss 16:30 19:30 3.00 LOG CSG AF Rig up and run Expro WLS gamma /ccl to correlate Setting depth of excape modules. POH and R/D logging tools. 19:30 20:00 0.50 RUN CSG AF Move 3 1/2 casing and modules down 13.5' correction as a result of gamma /CCL correlation log. Float Collar at 9016.27' Shoe set at 9051.69' 20:00 23:00 3.00 PUMP CMT AF PJSM; Rig up cement head and lines. Pump 5bbls H2p Test lines to 3500psi. Pump 40bbl 10.6ppg seal bond spacer. Followed by 807 168bbls 15.8ppg Class G cement + 0.05 Static Free. + 1% Calcium C.bKride + 1.2 % BA -56 + EC -1 -10.3 CD-32 + 1GPS FP-6L + .02Sodium Metasillicate. Shut down. Pump 2bbls H2o to launch wiper plug, followed by 76bbls 8.6 kc lAt 1400psi Plug bumped with 2400psi. Shut down, floats held, Cement in place at 22:45hrs. 100 % returns 23:00 00:00 1.00 RURD CMT AF Rig down cement head and lines. clean clear rig floor 00:00 06:00 6.00 WAITON CMT AF Wait on Cement,Begin nipple down of riser, choke and kill lines, Prep stack for nipple down. Clean pits, Flush lines Load out pipe and pipe racks. Rig down #3 pump www.peloton.com Report Printed: 11/2/2009 r 0 Marathon Operations Summary Report N ATMOk Oil Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 10/7/2008 Job Category: DRILLING 24 Hr Summary N/D BOP, Raise stack, Set csg. slips and packoff on 3 1/2 csg. with 195K on slips, Remove stack, N/U tree test to 5000 psi f/10 min./ Test 3 112 csg. string to 2000 psi hold 30 min., final pressure,1925 psi.R /D GD -1 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 NUND BOPE AF Nipple down BOPE Clean pits. Lift Stack, Pull and terminate control lines from rig floor P/U 190kIb and Set 3 1/2 casing split slips/ pack off. Cut and lay down 3 1/2 casing Jt. P/U and move bop stack out cellar.Make final cut on 3 1/2 csg. stub. Test pack off 5000psi /10min.Test void to 5000/10min. 12:00 15:30 3.50 NUND TREE AF Install /Nipple up tree. Test to 10,000psi f /10min test good 15:30 16:30 1.00 TEST CSG AF R/U and test 3 1/2 casing to 2000psi, hold for 30min Final pressure 1925psi test good. Set BPV 16:30 06:00 13.50 RURD RIG AF Rig Down Service lines and Top Drive, Clean pits Move out #3 mud pump, Mi swaco van, Cuttings tankPJSM; Remove bails, turn buckles,Prep rig to scope down derrick, Pull lines from rig floor,Replace teflon on torque tube slide, change alternator on #1 carrier engine. Report Date: 10/8/2008 Job Category: DRILLING 24 Hr Summary R/D GD -1 Move camp to KU 22 -6x. Released rig from BC -19 @ 00:00 hrs. on 10/8/2009. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 13:00 7.00 RURD RIG AF PJSM; With crane operator, Crane off stairs, Choke house and doghouse. Crane down wind walls,flowline and gray iron. Remove fuel tank. Note : Weaver bros short on trailers . Prep camp for move . RID and split pits 13:00 16:00 3.00 RURD RIG AF Load out camp and move to 34 -31 pad, set and rig up 16:00 00:00 8.00 RURD RIG AF Lay mast down on carrier. Move carrier off mud boat. Move mud boat off well center. Move Sub from well head and scope down . Continue to move loads ( non permit ) from BC -19 to KU 22 -6 pad. All permit load Trucking suspended due to darkness. GD -1 released from BC -19 at 00:00hrs 10 -8 -2008 Report Date: 10/24/2008 Job Category: COMPLETION 24 Hr Summary Run CBL /GR /CCL tied into Weatherford Density log dated 10 -02 -08 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 10:30 11:30 1.00 SAFETY MTG AF Obtain permit, PJSM - topics - gas production pad, red light for fire, blue lights for gas emission, sirens for audible, review JSA, job assignments, overhead loads, pinch points, slips trips, falls. Outline of job to be performed, emergency numbers, muster area, emergency vehicles etc. 11:30 12:15 0.75 RURD ELEC AF rig up crane, wireline truck, wireline BOP and packoff. CBL tool failed on checkout 1215 12:45 0.50 WAITON EQIP TA MDLG Mechanical failure of CBL/ GR logging tool on surface. Would not power up correctly. Changed out tool for backup tool. 12:45 17:00 4.25 RUNPUL ELEC AF Run in hole with CBL / GR /CCL tool. Tagged bottom at 8930' wireline depth tied into Weatherford open hole Quad Combo log dated October 2, 2008. Ran 200' repeat section. Logged main pass up 200 feet above cement top at 6470" measured electric line depth. Pulled tool out of hole. Out of hole at 5 pm 17:00 17:45 0.75 RURD ELEC AF Rig down wireline unit, crane truck, wireline BOP / packoff. Shut swab valves, upper and lower master valves, install nite cap on tree. Secure wellhead, sign out at office and leave location. Report Date: 11/17/2008 Job Category: COMPLETION 24 Hr Summary Rig up for frac job, job cancelled, rig dawn Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment Report Date: 11/24/2008 Job Category: COMPLETION 24 Hr Summary R/D Move GD -1 f/ SU -6 to BC -19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:00 06:00 12.00 MOB RIG AF Load out GD -1 For move from SD -6 Report Date: 11252008 Job Category: COMPLETION 24 Hr Summary MOB rig to BC19 www.peloton.com Report Printed: 1122009 • • Marathon Operations Summary Report :AAA Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 MOB RIG AF PJSM: Split pits, Prep carrier, boiler,generator and water tank . 08:00 11:00 3.00 MOB RIG AF PJSM; With Weaver Bro Trucking Co and crews Discuss hazards involved with rig move. Load out trailors,prep camp for move /. Load out pump module Sub Generator. Ship Carrier. 11:00 12:00 1.00 MOB RIG TA MSOT Truck Hauling pump module u- joints snapped as it was moving up hill to main hyway. Use forklift to back truck down off hill to level ground. Set pump module down. Move truck out of road and spot new truck and move pump module to BC -19 12:00 19:00 7.00 MOB RIG AF Clean snow off matting boards R/U camp generator and break room. Scope up sub and center over BC -19 well center. Set Generator unit. Set Pit module .Install hand rails on generator and pump units. run electrical wires. Remove roof off cooling towers. 19:00 06:00 11.00 MOB RIG TA MSOT Suspend rig moving operations with trucking due to darkeness. Location very tight with well houses around center of BC19 well. Danger of personal working around trucks and forklift with very little or no lights. Crews continue working rigging up service lines. Light towers arrived on location at 2030hrs. Daily Operations Report Date: 11126:2008 Job Category: COMPLETION 24 Hr Summary R/U GD -1 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 18:00 12.00 KURD RIG AF PJSM: Safety in crane operations. Set gray iron Set mud boat, boiler and water houses. Set pump and pits. Set carrier on mud boat and level up. Crane up fuel tank, derrick, choke and dog houses. Set wind walls, BOP conex,stairs and landings. Install turnbuckles and raise mast to floor level. Pull electrical and controll wires to sub . 18:00 06:00 12.00 KURD RIG AF Scope up mast and secure guy lines. run water lines. Install bows and tarps for carrier. Jack subover. Flop floor plates. Set catwalk and beaver slide. Install t -bars and torque tube. Run steam and water lines.. Plow snow off pad. Continue to unload trailers Report Date: 11/2712008 Job Category: COMPLETION 24 Hr Summary Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 RURD RIG AF Rig up topdrive and service loop. Move to GD -1 Maintenance 1200hrs 11 -26 -08 Report Date: 1/12/2009 Job Category: COMPLETION 24 Hr Summary Rig released to BC -19 workover @ 00:00 hrs. on 1 -12 -2009. Rigging up for BC -19 workover operations. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 00:00 06:00 6,00 RURD RIG TA CSOT PTSM: Rig released to BC -19 workover operations @ 00:00 hrs on 1 -12 -2009. Replace berm by pits & generator house. Sand walkways. Thaw ice in cellar. Chip &thaw ice around sub base. Reinstall electrical coupling & housing cover. Warm up hydraulics & check for leaks (tighten as needed). Weld bracket for utility line holders. Report Date: 1/13/2009 Job Category: COMPLETION 24 Hr Summary R/U to remove production tree. Conduct MOC orientation refresher coarse. Hold pre -job workover meeting w/ all service contractors. N/D production tree. Remove pack -off. M/U & RIH w/ fishing spear assy. Retrieve 3 -1/2" csg slips & bowl. M/U & RIH w/ 3-1/2" extention hanger. Test seals on extention hanger to 8500 psi f/10 min(ok). Engage slips & set 3 -1/2" extention hanger w/ 90 klbs block wt. Retest seals on extentention hanger to 8500 psi f/ 10 min(ok). Backout spear. POOH 5' (spear stuck). Attempt to free spear (no go). Conduct meeting w/ Houston. Wait on orders until meeting @ 07:00 hrs. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 11:30 5.50 RURD RIG TA MDCE PJSM: Clear snow. Sand walkways. Pin windwall. Suck out cellar. Suck out pit ##5. Receive tools for workover. Pull wires out of snow & ice. Install hose holder from boiler to pit house. 11:30 12:30 1.00 SAFETY MTG TA MDCE Conducted Jobsite Orientation refresher coarse with both crews by Pete Barrett as per MOC. 12:30 13:30 1.00 SAFETY MTG TA MDCE Conduct pre -job meeting with all service company personnel discussing upcoming non - routine workover procedure to be performed. 13:30 15:30 2.00 NUND TREE TA MDCE PJSM: N/D production tree. Pull back control (lines. Retrieve 3 -1/2" pack -off. www.peloton.com Report Printed: 11/2/2009 • Marathon Operations Summary Report i,u Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 15:30 16:00 0.50 PULL EQIP TA MDCE PJSM: P/U 2.992" spear assembly, RIH & engage @ 5' inside 3 -1/2" tubing. 16:00 17:30 1.50 PULL EQIP TA CSOT PJSM: P/U 50 klbs f/ 15 min (no movement). P/U 120 klbs f/ 15 min (no movement). Install dog collar & upper centering plate. P/U 150 klbs f/ 15 min (no movement). P/U 190 klbs f/ 15 min (no movement). P/U 200 klbs (no movement) Call Houston. Get approval for 210 klbs max. 17:30 19:30 2.00 PULL EQIP TA CSOT P/U 205 klbs & saw movement. Move dog collar directly above centralizer plate. Work slips free. Remove slips & bowl. Call Houston with data for extention hanger length. Reconnect 2 control lines. Inspect stump. 19:30 21:00 1.50 WAITON EQIP TA CSOT Wait on extention hanger from BOT. Set 3 -1/2" slips in rotary (wrong size). Call Weatherford for new set of slips. 21:00 21:30 0.50 PULL EQIP TA CSOT Set slips. Back out top drive & remove centralizer plate. 21:30 22:30 1.00 RUNPUL TBG TA CSOT P/U & RIH w/ extension hanger over 3 -1/2" tubing stump. Remove die safety screws & test seals to 8500 psi f/ 10 min (ok). Tie back control lines. 22 :30 23:30 1.00 RUNPUL TBG TA CSOT Seat dies & land out extention hanger w/ 90 klbs. Retest seals to 8500 psi f/ 10 min (ok). 23 01:00 1.50 SETREL TOOL TA CSOT Back out spear. Pull out of hole 5' (spear stuck inside bottom of 3 -1/2" extension pup). Start taking weight. Attempt to rotate left & right (no success). Pull 10KIbs over (unable to free spear /grapple assy). Attempt to go down (no go, start taking wt). Continue to attempt to work spear free (no go). 01:00 01:30 0.50 SETREL TOOL TA CSOT Call Houston & discuss details of stuck spear problem. 01:30 06:00 4.50 WAITON ORDR TA CSOT Wait on orders. Meeting to be held @ 07:00 hrs discussing alternatives. All while preping mechanic shop & parts house for rig move. Spot painting in pits. Working on electrical boxes for centrifuge house. Daily Operations Report Date: 1/14/2009 Job Category: COMPLETION 24 Hr Summary Wait on orders. Break out 3 -1/2" extention pup jt. w/ spear & UD. Drift & M/U 3 -1/2" jt. csg. Retest seals in extention hanger to 8500 psi f/ 10 min (ok). Cut 3 -1(2" csg & dress stump. Install 3 -1/2" pack -off & test to 5000 psi f/ 10 min (ok). N/U production tree. Terminate control lines. Test void to 5000 psi f/ 10 min (ok). Orient wing valve & test tree to 10,000 psi f/ 10 min (ok). Pull TWC & install BPV. Begin rigging down GD -1 for rig move to BC -18. Ops Trouble Start Time End Time Dui (hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 WAITON ORDR TA CSOT Wait on orders from 07:00 hr meeting discussing options. All while preping mechanic shop & parts house for rig move. 07:30 12:00 4.50 PULD TBG TA CSOT PJSM: Break out & lay down 3 -1/2" extention pup jt w/ stuck spear. Drift & make up 31'jt of 3 -1/2 ", L -80, 9.3 # csg into extention hanger. Torque to 3100 ft-Ibs . Retest seals in extention hanger to 8500 psi f/ 10 min (ok). Cut & dress 3 -112" csg.. Note: lower part of spear was cammed over catching on bottom of 3 -1/2" casing pup not allowing grapple to close. 12:00 17:30 5.50 NUND TREE TA CSOT PJSM: Install 3 -1/2" packoff & test to 5000 psi f/ 10 min (ok). Connect control lines. N/U production tree. Terminate control lines. Test void to 5000 psi f/ 10 min (ok). Orient wing valve. Test tree to 10,000 psi f/ 10 min (ok). Pull TWC. Install BPV. 17:30 00:00 6.50 RURD RIG TA CSOT PJSM: R/D & move pump #3, parts house , welding shop & mechanics trailer. R/D top drive & lay in cradle. Lay down torque tube. Remove tarps from derrick base. R/D stairs to BOP connex. UD beaver slide. Move catwalk. Remove cellar grating. 00:00 06:00 6.00 KURD RIG TA CSOT PJSM: Shut off water & blow down lines. Shut down boiler. Blow down steam & steam return lines. Pickle test pump. Remove socks from telescope & lay down cylinders. Rig down carrier tarps & bows. Prep & scope down derrick. Crane down rear wind walls & floor plate. Report Date: 1/14/2009 Job Category: COMPLETION 24 Hr Summary Pull wires and prep rig components to be moved. Split pit and pump room. Empty boiler and water tank. Moved rig to BC -18 @ 12:00hrs 1/14/2009. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 RURD RIG TA CSOT Pull wires from BOP connex, choke house, dog house, pits, pump room, and carrier. Crane down stairs, dog house, choke house, grey iron, and fuel tank. Set cooling tower for pump hydraulics. www.peloton.com Report Printed: 11/2/2009 � Marathon Operations Summary Report x ba� a'ntort Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:30 12:00 2.50 RURD RIG TA CSOT PJSM with rig crew, WBI and Udelhoven. Prep and split pits. Empty boiler and water tank. Move pits out. Remove carrier turnbuckles. Pull wire for sub base. Remove berm around rig. Rig released to BC -18 @ 12:00hrs 1 -14 -2009. Daily Operations Report Date: 3130,2009 Job Category: COMPLETION 24 Hr Summary Rig up for frac, continue rig up Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Sign in, Review JSA- assign jobs, review procedures, receive work permit, Safety Meeting - active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency procedures, 283 -1316 , if no answer call 911 etc. 08:30 15:30 7.00 RURD STIM AF Rig up frac equip„ flow back tanks, containment, pumps, sand kings, flow back test equipment, flow lines Report Date: 3/31/2009 Job Category: COMPLETION 4 Hr Summary rig up for frac, continue ri. up Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF arrive location, hold safety meeting, review JSA, assign jobs, receive work permit 08:30 15:30 7.00 RURD STIM AF continue rig up of fracture stimulation equipment Report Date: 4/1/2009 Job Category: COMPLETION 24 Hr Summary rig up for frac, BOP test successful Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Cede Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Arrive location, sign in, obtain work permit, review JSA's, assign jobs 08:30 16:30 8.00 RURD COIL AF continue rig up, mix KCL water, start heating water.Rig up BJ Services Coiled Tubing Unit, crane, set frac head, BOP's. Prepare for pressure test. 16:30 17:30 1.00 TEST BOPE AF Test BOP's per state requirement. State witness waived per Mr. Jim Regg. BOP test successful. Prepare to pressure test flow back equipment. 17:30 19:30 2.00 TEST EQIP TA MSFB Pressure test flow back lines, sand buster, chokes, Expro Well Test flow back lines. Sand buster failed at #4500. Inlet line to vessel cracked. 19:30 20:30 1.00 SECURE WELL TA MSFB Report Date: 4,2.2009 Job Category: COMPLETION 24 Hr Summary Continue rig up, test flow lines, perforate Module 1 Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG TA MSFB Arrive location, receive work permit, review JSA's, assign jobs, emergencies, procedures 08:30 16:30 8.00 RURD PIPE TA MSFB Rig up crane, rig down sand buster, remove from flow back lines, rig up replacement sand buster, perform pressure test to 4500 psi - test successful on flow back lines, Expro well test flow lines, sand buster. 16:30 17:30 1.00 PERF CSG AF Perforate Module 1, Pressure to perforate 3100 #, verified at wellhead. Interval perforated 8667' - 8677 feet MD. 17:30 18:00 0.50 SECURE WELL AF Secure wellhead, rig down for evening, turn in work permit, leave location Report Date: 4/3/2009 Job Category: COMPLETION 24 Hr Summary Stimulate Mod. 1, screen out, clean out with Coil Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 09:00 1.50 RURD STIM AF arrive location, sign in, complete rig up stimulation iron 09:00 09:30 0.50 SAFETY MTG AF PJSM - review job for the day, assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, emergency exits, three second rule, buddy rule, Keying H. will handle the gate, sign in board and sign out board. Stop the Job authority, communications and FOCUS needed on the job. 09:30 10:30 1.00 RURD PIPE AF rig up flow lines to 9 518" x 3 112" annular valve on tree. www.peloton.com Report Printed: 1112/2009 • • iii Marathon Operations Summary Report ( MARATHON Oil Company Well Name: BEAVER CREEK 19 Cps Trouble Start Time End Time Dur(hrs) OpsCode Activity Code Status Code Comment 10:30 11:30 1.00 TEST EQIP AF Pressure test frac equipment flow lines to 8500 #. Test good. Load annulus, pressure up to 1450 #. Prepare to start fracture stimulation. 11:30 13:00 1.50 PUMP FRAC TA MSSM Electrical issues reading rates of chemicals going to blender and into TMV. Change out electrical cables. troubleshoot various issues. 13:00 13:30 0.50 PUMP FRAC AF Fracture stimulate module 1 interval 8667 -8677' shot at 6 shots per foot. Pump pad, breakdown pressure - 7050 #. Pump 2 #- pump rate 13.4 BPM, Pump pressure 7150 #, Pump 3# slurry, rate - 14.1 BPM, Pump pressure - 7019 #. Pump 5# -rate 14.1 BPM , Pump pressure - 6670 #. Pump 6 #- rate 14.3 BPM, Pressure - 6557 #. Started to screen out, went to flush when 3# slurry hit formation. Screened out when 5# slurry hit formation. 1840 #20/40 Ottawa sand into formation, 160 #flex sand. 6701 #sand in pipe with 1360 feet of fill. Top of sand in casing should 7642 feet MD.Total fluid pumped - 208 BBL with 130 BBL into formation. Flowing back into flowback tank. 13:30 14:30 1.00 FLOW BACK AF flow back to flow back tanks. Rate 1 BPM and decreasing. Flowed for 1 1t2 hours, total volume flowed back 38 BBL with a small amount of flex sand at end before well died. Prepare to rig up Coil. blow down treatment lines to keep from freezing 14:30 16:00 1.50 RURD COIL AF Rig up coil unit, injector head, perform shell test - passed, 16:00 23:00 7.00 RUNPUL COIL AF Rigged up coil to clean out. Hit sand bridge at approx. 4000' MD. Heavy sand returns to surface. Clean out casing to top of perforations at 8667', circulate for 20 minutes, pull out of hole circulating back to surface. 23:00 23:30 0.50 RURD COIL AF Started out of hole at 21:30 hours.00H at 23:00 hours. 23:30 23:45 0.25 SECURE WELL AF _Secure wellhead for evening, turn in work permit, sign out and leave location. Daily Operations Report Date: 414!2009 Job Category: COMPLETION 24 Hr Summary Mod 2 screened out, CTU cleaning out Ops Trouble Start Time End Time Dur (hrs) Cps Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF PJSM - reviewed JSA for todays work, assigned jobs, slips, trips, falls, active gas production pad, red lights for fire, blue lights for gas emission, siren, muster area, reporting of incidents, buddy rule, three second rule, FOCUS, ppe, emergency procedures, telephone call numbers, 283 -1316, 911, emergency exits 08:30 09:00 0.50 RURD STIM AF Prepare frac equipment for job, build gel, roll fluid, flow 5 barrels through flow lines to flfow back tanks to clean out lines. Prepare to perforate zone 2 from 8540 - 8550 feet MD. 09:00 09:15 0.25 PERF CSG AF Perforate Module 2 at 6 spf over interval 8540 - 8550 feet MD. Pressure to activate gun - 4500 psi verified firing at surface and electronically 09:15 09:45 0.50 PUMP FRAC AF Pump fracture stimulation. Pad - pump rate 10.5, pressure 5871 #, rate 13.1 pressure 6100 #, rate 14.5, pressure - 6310. Breakdown pressure 6379 #, pumped 1# slurry, rate -14.7, pressure 6054, pumped 2 #, rate 14.8, pressure 6000 #. Pumped 3 #- rate14.5 BPM, pressure 5825 #. Pumped 5# rate 14.4 BPM, pressure 5416# switch to flush. Zone screened out in middle of 5 #to formation. Rate - 14.4 #, average pressure 6000 #. Total fluid pumped 280 BBL, SAND - 14,230# no flex sand. Total sand in formation 13,030 #. 09:45 10:45 1.00 FLOW BACK AF Bleed down casing to less that 5000 #. flow back to tanks. Initial flowback pressure 700# declining. 10:45 12:15 1.50 RURD COIL AF PJSM - COIL Unit, review job, assign jobs, slips, trips, falls, active gas production pad, focus, buddy rule,three second rule etc. 12:15 15:45 3.50 RUNPUL COIL AF clean out to Mod. 2 perforations at 8540- 8550'MD. POOH, rig back injector head, rig down coiled tubing unit 15:45 16:15 0.50 SECURE WELL AF secure wellhead, turn in work permit, sign out, leave location Report Date: 4/6/2009 Job Category: COMPLETION 24 Hr Summary Stim Mod. 3, Mod 4 screen out, clean out, Stim Mod 5 www.peloton.com Report Printed: 11/2/2009 • Marathon Operations Summary Report .. Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF PJSM - Sign in, obtain work permit, hold safety meeting. Topics - slips , trips , falls, reporting incidents and injuries, active gas production pad, red lights for fires, blue lights for gas emission, sirens, emergency exits, muster area, emergency procedures and telephone numbers, FOCUS , ETC. 08:00 08:30 0.50 RURD STIM TA MSSM Busted hydraulic fitting on hydrator system leak to containment, tighten up, test and continue with Module 3, 08:30 08:45 0.25 PERF CSG AF Perforate Module 3 at 6 spf. Interval 8458 -8468 ft. MD. Perforating verified at wellhead. Pressure to perforate 6630# 08:45 09:15 0.50 PUMP FRAC AF Pumped breakdown pad. Breakdown pressure 4837 #, rate - 14.8 BPM, pressure 6000 #. Pumped 2 #- rate 14.7 BPM, Pressure 5850 #, pumped 3 #, rate - 14.7 BPM, Pressure 4630 #, Pumped 5 #- rate 14.7 BPM, Pressure 4600 #. Note: Mixer sent a 7 pound slug at start of 5# slurry stage. Stage successfully pumped. Finished at 09:45am stage 3. Reload tanks, strap tanks, prepare to perforate Module 4. Total clean water pumped 296 BBL, sand - 13,500 #, no flex 09:15 09:30 0.25 PERF CSG AF Perforate Module 4 at 6 spf. Interval 8173 - 8183' MD. Perforating pressure 8100 #. Verified at wellhead and acoustically. 09:30 09:45 0.25 PUMP FRAC TA MSSM Pumped stimulation for Module 4, interval 8173 -8183' MD, trouble with blender mixing slurry correctly at higher densities. Pumped 1# at 11.0 BPM, Pressure - 4993 #, Pumped 2# slurry at 14.5 BPM, Pressure 5160 #. Pumped 4# slurry that varied betwen 0 - 6# per gallon, rate - 14.4 BPM, Pressure - 5100 #, Pumped 5# slurry that varied between 0 - 8# per gallon, rate 14.8 BPM, Pressure 4767 #. Zone screened out when 8# slug at beginning of 5# stage hit the perforations. Total fluid pumped 153 BBL, sand- 12,000 #, flex sand 1880 #. In the formation - sand - 10,600# and flex sand - 1320 #. Left in pipe, 1300 feet of fill, sand - 5300 #, flex sand - 750# 09:45 10:45 1.00 FLOW BACK TA MSSM flow back to tanks 10:45 11:45 1.00 RURD COIL TA MSSM Rig up Coiled Tubing Unit to clean out to top of perforations on Module 4. Perforations at 8173' MD. POOH and rig down coil unit. Prepare to perforate Module 5. 11:45 15:45 4.00 RUNPUL COIL TA MSSM Clean out to 8000' MD. Circulate sand back to surface. POOH. Back to surface at 15:45 pm. Isolate coil injector. Prepare to perforate 15:45 16:00 0.25 PERF CSG AF Perforate module 5. Interval 7910 - 7910 feet MD. Pressure to actuate perforation - 3000 #verified at surface and acoustically. 16:00 16:45 0.75 PUMP FRAC AF Fracture stimulate Module 5 - interval 7900 -7910 feet MD. Breakdown pressure 5202# at rate - 9.0 BPM, Pressure - 4879, increased rate to 14.8 BPM , Pressure 5346 #. Pumped 2# slurry at rate - 14.6, Pressure- 4935 #, Pumped 4 #, rate 14.1 BPM, Pressure - 4731 #, Pumped 6 #- Rate 15.9, Pressure 4700 #. Switch to flush - Rate 15.9 BPM, Pressure 4535# Frac away at 16:30. ISIP = 4385 #. Pumped 276 BBL fluid and 2415# sand. 20 /40 Ottawa sand - 21,130 #, flex sand 3020 #. 16:45 17:16 0.50 SECURE WELL AF secure wellhead from pumping services, turn well over to Coiled Tubing unit. 17:15 18:00 0.75 RURD COIL AF Rig up coiled tubing unit. 18:00 18:15 0.25 TEST WLHD AF Shell test CTU injector head / OOP's. Test successful 18:15 20:00 1.75 PUMP WTR AF Run in hole with CTU clean out. Start N2 at 7100 feet , rate 325 scf / min 20:00 06:00 10.00 PUMP N2 AF Finish washing hole to bottom at 8962'. Pull up to 6000' , increase N2 to 500 scf / min, shut down fluid, when CTU injection pressure stabilizes and N2 turns the corner, start downhole. At 8500', increase N2 rate to 700 scf / min. Run into hole to 8680' Circulate N2 for 20 minutes and start out of hole. Daily Operations Report Date: 4/7/2009 Job Category: COMPLETION 24 Hr Summary Pull coil unit out of well, Rig down , turn over to well testers Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 RUNPUL COIL AF Pull coil unit out of well 08:00 09:00 1.00 RURD COIL AF Rig down coil unit injector head, set back into cradle, install nite cap onto BOP's. Turn well over to Expro well Test group. Well is dead. Minimal rate of 40 MCF initially dropping to 6 MCF in approx. 5 hours. www.peloton.com Report Printed: 1102/2009 • M arathon Operations Summary Report 'WA/. Oil Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 4/15/2009 Job Category: COMPLETION 24 Hr Summary MIRU Pollard slickline unit. Tag 2.5" bailer @ 8882'. RIH w/ static PT tool and log well. RDMO slickline unit. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Held SimOps meeting with operator. Obtain safe work permit. Discuss simops, muster areas, evac procedures, smoking area, and crane ops. Review Pollard JSA. Travel to location. 08:30 09:00 0.50 RURD EQIP AF Spot foamer skid and equipment w/ crane for BJ Petrochem. 09:00 11:15 2.25 RURD SLIK AF RU slickline equipment. Spot crane and truck. RU lubricator and test to 1375 psi- good test. 11:15 12:15 1.00 RUNPUL SLIK AF RIH w/ 2.5" DD bailer. Tag bridges @ 7,926' and B,180'. Worked tool and fell through. Tag fill @ 8,882'. POOH. Bailer full of v. fine sediment. Fluid level approx. 4,000'. 12:15 17:30 5.25 RUNPUL SLIK AF RIH w/ static PT gauges (tandem). 5 min stop @ surface, 10 min stop @ 8,870', 5 min stop @ surface. OOH and check data- good data. 17:30 19:00 1.50 RURD SLIK AF RDMO slickline equipment. Turn in safe work permit, sign out, and leave location. Report Date: 5/22/2009 Job Category: COMPLETION 24 Hr Summary Spot and RU CTU. Test BOP (test waived by AOGCC) Ops Trouble Start Time End Time Dur(hrr) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Hold PJSM with BJ, ASRC, MOC. Discuss JSA's and BJ safety checklist. Issue permit and assign tasks. 08:00 11:30 3.50 RURD COIL AF Spot and RU coil and equipment. RU suction and hard lines. Stand up injector head and RU BOPE to wellhead. 11:30 13:00 1.50 TEST ROPE AF Function test ROPE- good test. Secure area and obtain BOP test waiver- test waived. Pump through iron and check for leaks- no leaks. Test blinds to 350 psi low and 4200 psi high. Good test. Test slip /pipe rams to 300 psi low and 4200 psi high. Good test. 13:00 13:45 0.75 SECURE WELL AF Secure wellhead and equipment. Sign out, turn in safe work permit, and leave location. Report Date: 5/232009 Job Category: COMPLETION 24 Hr Summary Jetted well dry to 8700'. No Flow. 15 bbls returns Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM with BJ, Expro well testing, ASRC, MOC. Discuss 3 JSA's and BJ safety checklist. Issue permit and assign tasks. 08:30 09:00 0.50 RURD COIL AF Start equipment and stab on well. Reconnect Expro lines. 09:00 09:30 0.50 TEST EQIP AF Fill Ct and shell test 250/4500 psi. 09:30 11:15 1.75 TEST EQIP AF Retest Expro lines. Repair one leak and perform final test 500 / 4500. Good test. Purge reel with N2. 11:15 11:45 0.50 BLOWDN TBG AF SIWHP = 2400 psi. Blow down well to gas buster. 11:45 13:00 1.25 PUMP N2 AF RIH pumping N2 at 300 SCF /min. 13:00 13:30 0.50 PUMP N2 AF Depth = 6000'. Increase N2 to 500 SCF /min. Continue RIH. 13:30 14:45 1.25 PUMP N2 AF Depth = 7570'. Increase N2 to 750 SCF /min. Continue RIH 60 fpm. Stop at 8717' (below bottom pert). Pressure increased to 110 pump and 175 wellhead. POH slowly to 7550'. SD N2. Pump pressure dropped to 200 psi. 14:45 16:00 1.25 RUNPUL COIL AF POH with well open. 16:00 16:30 0.50 RURD COIL AF Pump and WH pressure = 0 psi. Close in well and Rig back for night. Report Date: 5124/2009 Job Category: COMPLETION 24 Hr Summary Jetted well dry to 8700'. No Flow. 17 bbls returns Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Hold PJSM with BJ, Expro well testing, ASRC, MOC. Discuss 3 JSA's and BJ safety checklist. Issue permit and assign tasks. 08:15 09:15 1.00 RURD COIL AF Rig onto well. SIWHP = 1700 psi. 09:15 09:30 0.25 TEST EQIP AF Shell test to 1000 psi with water. 09:30 11:00 1.50 RUNPUL COIL AF RIH. 11:00 11:30 0.50 PUMP N2 AF Start N2 at 750 SCF /min. RIH to 7500'. 11:30 12:00 0.50 PUMP N2 AF 1200 psi pump, 300 psi surface. Water returns. RIH to 8700'. www.peloton.com Report Printed: 11/2/2009 • t i Marathon Operations Summary Report j Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Our Ors) Ops Code Activity Code Status Code Comment 12:00 13:00 1.00 PUMP N2 AF POH slowly while jetting at 750 SCF /min. Pressures dropping. Final jetting pressure 745 psi pump, 125 psi WH. SD N2. 17.8 Bbls water returned. 13:00 14:00 1.00 RUNPUL COIL AF POH. well and Ct bled to 0 psi while POH. 14:00 14:30 0.50 RURD COIL AF Rig back for night. Daily Operations Report Date: 525/2009 Job Category: COMPLETION 24 Hr Summary Jetted wet dry to 8700'. No Flow. 17 bbls returns Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:00 0.50 SAFETY MTG AF Hold PJSM with BJ, Expro well testing, ASRC, MOC. Discuss 3 JSA's and BJ safety checklist. Issue permit and assign tasks. 08:00 08:45 0.75 RURD COIL AF RU CTU. SIWHP = 1700 psi 08:45 09:00 0.25 TEST EQIP AF Shell test to 1000 psi. Good test 09:00 10:30 1.50 RUNPUL COIL AF Blow down well and RIH. 10:30 11:00 0.50 REPAIR EQIP AF Start N2. Blew burst disk on N2 unit. SD and replace disk. 11:00 12:30 1.50 PUMP N2 AF Start N2 at 750 SCF/min. Depth = 7500'. Max pump pressure = 1120 psi. RIH to 8700' and blow well dry. Recovered 14 bbls water. Final pressures = 840 psi pump and 100 psi WH. 12:30 13:30 1.00 RUNPUL COIL AF 5D N2 and POH. 13:30 14:30 1.00 RURD COIL AF OOH. Rig back CTU for night. Will shut down for memorial day and wait on orders on Tuesday. 14:30 15:00 0.50 SERVIC EQIP AF Service CTU. Sign out, close permit, leave location. Report Date: 527,2009 Job Category: COMPLETION 24 Hr Summary Rig down coil unit, rig down Expro well test equipment Ops Trouble Start Time End Time Our (Ns) Ops Code Activity Code Status , Code Comment 07:30 08:30 1.00 SAFETY MTG AF Arrive location, obtain work permit and hold safety meeting. PJSM - Active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area. Emergency vehicle, driver. Emergency phone number - 283 -1316, three rings, no answer, call 911. Overhead loads, pinch points, three second rule, buddy rulle, job focus. Bears - brown bear sow with 2 cubs seen just off location - be alert. Volcano awareness. 08:30 11:00 2.50 RURD COIL AF rig down coil unit 11:00 11:30 0.50 SECURE WELL AF _secure wellhead, turn in work permit , leave location Report Date: 6142009 Job Category: COMPLETION 24 Hr Summary Rig uip Expro wireline, run gauge ring to 8703 feet MD. Perforate 8410 - 8420 feet MD and 8370 - 8376' MD. Attempt to flow back, well died, rig down Expro wireline. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:00 10:00 3.00 SAFETY MTG AF Arrive location - Beaver Creek monthly safety meeting. Topics discussed - driving safety, summer driving, safety culture, acquisition accounting. Obtain work permit. Tailgate safety meeting - JSA- review job to be performed, assign jobs, active gas production pad, blue lights for gas emission, red lights for fire, sirens, muster area, alternate muster area, moose and bear issues, volcano issues, emergency numbers - 283 -1316, three rings, no answer, call 911. Emergency vehicle, emergency driver. 10:00 11:00 1.00 TEST ROPE AF Pressure test BOP, lubricator, flow tubes and packoffto 2500 # - test good. Finish rigging up crane and wireline unit 11:00 13:00 2.00 RUNPUL ELEC AF Run 2.60" OD gauge ring to 8703' MD. Fluid level at 7000' 13:00 15:00 2.00 PERF CSG AF Perforate 8410 - 8420' MD using 2 3/8" hollow carrier guns loaded at 4 spf. PWH prior to perforating is 750 #. Pressure immediately jumped to 775 #. In two hours pressure had increased to 1025# 15:00 17:00 2.00 PERF CSG AF Perforate 8370 - 8376' MD using 4spf 2 3/8' hollow steel carrier guns. Fluid level appears to be approx. 4500' MD 17:00 17:45 0.75 RURD ELEC AF Rig down lubricator and crane unit. Blow down well, attempt to flow well. Well died 17:45 18:00 0 25 SECURE WELL AF Secure wellhead for evening, leave location, sign out Report Date: 6/5/2009 Job Category: COMPLETION 24 Hr Summary Attempt to flow well, wait on orders www.peloton.com Report Printed: 1122009 • • • • Marathon Operations Summary Report s r A,l 3 Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF arrive location, obtain work permit, review JSA, assign jobs, rig down safety issues. 08:30 09:30 1.00 RURD ELEC AF Rig down BOP'S, wireline unit and crane. 09:30 09:45 0.25 SECURE WELL AF secure wellhead, leave location, turn in work permit Daily Operations Report Date: 6;22/2009 Job Category: COMPLETION 24 Hr Summary MIRU Pollard slickline unit. Tag w/2" bailer @ 8710'. RIH w/ PT tool and log well. RDMO slickline unit. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Held PJSM. Discussed Pollard JSA and safety meeting checklist. Assign tasks and issue permit. 08:15 09:15 1.00 RURD SLIK AF RU slickline equipment. Spot crane and truck. RU equipment and PU 2" DD bailer. 09:15 09:30 0.25 TEST EQIP AF Test lubricator with water to 3100 psi. Good test. 09:30 10:15 0.75 RUNPUL SLIK AF RIH w/ 2" DD bailer. Tag fill @ 8,710'. POOH. Bailer full of v. fine sediment. 10:15 15:15 5.00 RUNPUL SLIK AF RIH w/ PT gauges (tandem) at 60 fpm. 10 min stop @ 8,700', 3 min stops while POH. OOH and check data- good data. Surface pressure = 2060 psi, Fluid level at 6000', BHP = 3520 psi. 15:15 16:00 0.75 RURD SLIK AF RDMO slickline equipment. Turn in safe work permit, sign out, and leave location. Report Date: 7/18/2009 Job Category: COMPLETION 24 Hr Summary MIRU Expro wireline to perform static PT survey in prep for adding perfs. RIH w/ dummy guns and tag @ 8697'. Thaw ice plug to get OOH. RIH w/ PT tools and log well @ 90 fpm w/ 20 min bench on bottom. Fluid level - 7886'. RDMO Expro. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Held PJSM w/ Expro and operator. Discussed emergency procedures, SimOps, muster /smoking areas, wildlife, and crane ops. Obtained safe work permit. 08:30 09:15 0.75 RURD ELEC AF RU wireline equipment and PU lubricator. 09:15 09:30 0.25 TEST EQIP AF PT lubricator to 2500psi. Good test. 09:30 11:00 1.50 RUNPUL ELEC AF RIH w/ 10' of 2 3)8" spent dummy gun (2.625" OD). Set down @ 8697' RKB. WT and no progress. POOH. 11:00 14:30 3.50 PUMP TRET TA NDSW String stuck 37' RKB. Shut rams and determine line is free in grease head, probably an ice plug. Plumb in methanol skid and begin pumping methanol. Equaize across BOP, open rams, and tool is free. 14:30 18:00 3.50 LOG PROD AF RIH w/ PT tool string as follows: Air: 15.3psia & 59.5degF Surface: 2529.8psia & 72.2degF RIH @90fpm Fluid level - 7886' Tag @ 8690', 20 min bench Begin: 3421.9psia & 135degF End: 3418.4psia & 134.9degF POOH @ 90fpm. 18:00 19:00 1.00 RURD ELEC AF RD wireline equipment and LD lubricator. Sign out, turn in work permit, and leave location. Report Date: 9/11/2009 Job Category: COMPLETION 24 Hr Summary Arrive location, obtain work permit, PJSM, layout equipment, set gas buster on flowback tank, rig up containment, arm gun, set lubricator on tree, pressure test to 4500 # - test good, run in hole with 2 318" hollow steel carrier gun loaded 4 shot per foot. Shoot 7784 - 7794. How back well to tank. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 09:00 1.50 SAFETY MTG AF Arrive location, obtain work permit, hold PJSM - Topics discussed - review JSA's and assign work, emergency muster area, red lights for fire, blue lights for gas emission, sirens for audible, hand safety, extra emphasis on spill prevention, simultaneous operations, recent incidents. 09:00 12:00 3.00 RURD ELEC AF Rig up flow back equipment, wireline truck, crane and lubricator. Berm containment and make up gun system. www.peloton.com Report Printed: 11/2/2009 Marathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 13:00 1.00 TEST EQIP AF Pressure test BOP and lubricator to 4500 # - test good. 13:00 15:00 2.00 PERF CSG AF Perforate first zone with 2 318" hollow steel carrier gun loaded 4 shot per foot in Lower Beluga LB -20 from 7784 - 7794 ' MD correlated to Expro CBL /GR run on 10 -24 -2008. Pressure on wellhead before perforating - 2550 #. After perforating, pressure dropped to 2500 #. 15:00 16:00 1.00 FLOW BACK AF Flow back well through sand buster and gas buster to atmosphere. Initial well pressure 2450 #. Shut in well when pressure dropped at wellhead to 600 #. 16:00 16:30 0.50 RURD ELEC AF Rig down lubricator, crane truck and wireline truck. Secure wellhead and monitor wellhead pressure over weekend. 16:30 16:45 0.25 SECURE WELL AF Secure wellhead and monitor wellhead pressure. Leave location, sign out and turn in work permit Daily Operations Report Date: 9/2112009 Job Category: COMPLETION 24 Hr Summary Run PT Survey to determine fluid level. Fluid level at 4650" MD. Rig wireline unit down. Wait on orders. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 WAITON EQIP TA LOWP Wait on Expro wireline crew 08:30 09:00 0.50 SAFETY MTG AF PJSM - obtain work permit, review JSA's, assign work, active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, buddy rule, three second rule, job focus, anyone has "stop the job authority ", emergency numbers, muster areas. Drill - stop the job. Ron Kirkvleit will stop the job if he does not understand procedures or sees something unsafe. Once issue is understrood or mitigated, job will re- start. 09:00 10:00 1.00 RURD ELEC AF Rig up wireline unit, crane and lubricator. 10:00 10:45 0.75 TEST ROPE AF Pressure test wellhead equipment and lubricator to 3500 # - test good. 10:45 12:15 1.50 RUNPUL ELEC AF Run PT Survey to determine fluid level. Pressure on wellhead 1350# prior to going into hole. Fluid level at 4650' MD. POOH 12:15 12:45 0.50 RURD ELEC AF Rig down wireline unit, lubricator and crane truck. 12:45 13:00 0.25 SECURE WELL AF Secure wellhead for evening, turn in work permit and leave location. Report Date: 9123/2009 Job Category: COMPLETION 24 Hr Summary Rig up Expro wireline, crane and lubricator. Pressure test to 3500 # - test good., Pressure on wellhead 1350 #. Blow well down to 0 psi. Perforate 7818' - 7828' MD , 7830' - 7840' MD and 7988' - 8016' MD. Gun system is 2 3/8" 4 spf hollow steel carrier. Attempt to flow well back. Rig down wireline truck. Begin rig -up of coiled tubing unit. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Arrive location, obtain work permit, PJSM - review JSA, assign jobs, emergency numbers, procedures, muster areas, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, buddy rule, three second rule, volcano, FOCUS. 08:15 09:00 0.75 RURD ELEC AF Rig up wireline truck, crane truck and lubricator. Make up gun system, arm gun and set lubricator on wellhead following all safety precautions. Prepare to pressure test wellhead, 09:00 09:30 0.50 TEST BOPE AF Pressure test lubricator and BOP to 3500 # - test good. 09:30 12:00 2.50 RUNPUL ELEC AF Wellhead pressure 1350# Blow well down to 0 psi while tripping in with guns. Perforate 7818' - 7828' and 7830' - 7840' MD using 2 3/8" 4 spf gun system. 12:00 14:00 2.00 RUNPUL ELEC AF Wellhead pressure 0 psi. Trip into well with 2 3/8" 4 spf guns and perforate interval from 7988' - 8016' MD correlated to Expro CBL Log run on 10 -24 -2008. POOH 14:00 15:30 1 50 RURD ELEC AF Rig down wireline truck, crane truck and lubricator. Wellhead pressure built up to 200 #while rigging down lubricator. Dropped two soap sticks. Opened well back up to flowback tanks. 15:30 15:45 0.25 SECURE WELL AF Secure wellhead, turn in work permit, release wireline crew from well. Prepare to rig up CTU . 15:45 16:15 0.50 SAFETY MTG AF Arrive location, obtain work permit, PJSM - review JSA, assign jobs, emergency numbers, procedures, muster areas, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, buddy rule, three second rule, volcano, FOCUS. 16:15 18:15 2.00 RURD COIL AF Rig up BJ Services Coiled Tubing Unit. Spot containment and park units over containment. Rig up BOP's on wellhead and run hardlines. 18:15 18:30 0 25 SECURE WELL AF Secure wellhead, turn in work permit, leave location. www.peloton.corn Report Printed: 11/2/2009 • Marathon Operations Summary Report • ma n' A ) ,Oil Company Well Name: BEAVER CREEK 19 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:30 06:00 11.50 BLOWDN CSG AF Turn well over to night operations to continue blowing down casing pressure to flowback tank through sand buster and gas buster. Daily Operations Report Date: 9!2412009 Job Category: COMPLETION 24 Hr Summary Continue RU of CTU. AOGCC witness for BOP test waived by Mr. Jim Regg. Jet well in with N2 and flowback Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 FLOW TEST AF Continue flowing back well. Well has made approx. 25 BBL water since 6 pm yesterday. Fluid production has stopped, Making small amount of gas. Proceeding with CTU intervention. 09:00 09:30 0.50 SAFETY MTG AF CTU crew arrived at location, obtained work permit and held PJSM - topics discussed - active gas production pad, red lights for fire, blue lights for gas emission, sirens for audible, use buddy rule is you see or hear alarm, three second rule, muster areas, emergency numbers- 283 -1316, let ring three times, no answer call 911, emergency vehicles, hand injuries, slips, trips and falls with colder weather, slippery containment, tops of tanks, Review JSA's and assigned jobs. 09:30 12:00 2.50 TEST BOPE AF Continue rig up of CTU BOP's. Perform required AOGCC test - successful. AOGCC witness waived by Mr. Jim Regg 12:00 16:30 4.50 RUNPUL COIL AF Perform shell test of injector head and run tubing into hole. At 5500' start N2 at 500 scf 1 min. Jet down to 8715' MD. Set down on bridge. Pull up to 8650' and continue jetting well in. Start out of hole at 15:30 hours. POOH . No fluid returns. N2 and methane. Cut N2 at 5400' Out of hole at 17:00 hours. Wellhead pressure 15# and well is making 250MCF ID estimated. 16:30 17:00 0.50 RURD COIL AF Rig down injector head, attach night cap. Secure wellhead 17:00 17:15 0.25 SECURE WELL AF Double check valves, flowlines, secure for evening Report Date: 9/252009 Job Category: COMPLETION 24 Hr Summary Jet well in with N2, Rig down, Clow back Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 FLOW BACK AF Continue flowing well back to tank 10:00 10:30 0.50 SAFETY MTG AF PJSM - Coiled Tubing Unit rig down - review JSA's, assign jobs, active gas production pad, red lights for fire, blue lights for gas emission, siren for audible, buddy rule, three second rule, emphasis on hand safety, spills. Also discussed slips, trips and falls. Emergency numbers, emergency vehicles, muster areas 10:30 12:00 1.50 RURD COIL AF Rig down Coiled Tubing Unit, BOP's, containment 12:00 12:30 0.50 SECURE WELL AF Secure well for flowback to tank through sand buster and gas buster. Drop a soapstick. Well making an estimated 250MCF 1 D and a small amount of water estimated at 25 BWPD. 12:30 06:00 17.50 FLOW TEST AF Continue flow testing well to tank. Report Date: 101412009 Job Category: COMPLETION 24 Hr Summary Run PT log with well flowing at 450MSCF at 40 psi. Tagged at 7909' at bottom of module 5. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 07:30 08:15 0.75 SAFETY MTG AF Hold PJSM. Discuss Expro JSA, assign tasks, issue permit. 08:15 10:15 2.00 RURD ELEC AF Spot and RU eline unit. PU 2.60" gauge cutter. 10:15 10:30 0.25 TEST EQIP AF Test lubricator to 3000 psi. 10:30 12:30 2.00 RUNPUL ELEC AF RIH 2.60" GC. Tag and pass Mod 5. Tag at 7909' ELMD (base of Module 6). Attempt to work past 7909'. Unable to make progress, slight sticking. POH. Gauge cutter is damaged around edge. 12:30 14:30 2.00 RUNPUL ELEC AF Stab on and test with QT sub. RIH PLT string. Spinner quit at 5000'. Unable to wash clean. POH to change tools. Spinner was covered with Beluga mud. 14:30 16:00 1.50 RUNPUL ELEC AF Change spinner type and RIH. Spinner quit again at 5000' where gradient starts to increase. Run PT log to 7909'. Only cooling is in perfs 7784'- 7794'. 113 DegF and 506 psia. 124 DegF and 520 psia at tag @ 7909'. No cooling in Module 5 but gas coming from below. 16:00 17:15 1.25 RURD ELEC AF RD and release equipment. Turn in permit and sign out. www.peloton.com Report Printed: 11/2/2009 • • Marathon Operations Summary Report Oil Company Well Name: BEAVER CREEK 19 Daily Operations Report Date: 1015/2009 Job Category: COMPLETION 24 Hr Summary Run 1.87" swage, 2.58" swage, 2.5" LIB and 2.75" LIB. Everything sticks at 7909'. LIB indicates mechanical problem. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 08:30 1.00 SAFETY MTG AF Hold PJSM. Discuss Pollard JSA, Assign tasks and issue permit. 08:30 10:00 1.50 RURD SLIK AF Spot and RU slickline unit. PU 1.87" swage. 10:00 10:30 0.50 TEST EQIP AF Test lubricator to 3000 psi. Replace 1 o -ring and retest. Good test. 10:30 12:30 2.00 RUNPUL SLIK AF RIH 1.87" swage. Tag at 7905' WLM (same place as correlated 7909' elmd tag). Stuck and spent 30 min getting free. no jar action. No real indication on swage of why it was stuck. 12:30 13:30 1.00 RUNPUL SLIK AF RIH 2.58" swage to see if we tag higher and still have jar action. Same tog. Swage stuck. Work free in 15 min. Still had little jar action. Swage was marked on each side at about 160 Deg apart. One side is marked and the other side is gouged. 13:30 14:30 1.00 RUNPUL SLIK AF RIH 2.5" LIB. Stuck in same place. Worked free and POH. LIB has moon shaped impression on outer edge larger OD than LIB (looks like 3" ID) and is s erly cut 180 Deg away. We did not tag anything in tree or before bottom. 14:30 15:45 1.25 RUNPUL SLIK AF RIH " LIB. Stuck on bottom. Work free. Impression is similar with 3" ID on more of `LIB and 90 Deg from deep cut about 1/2" wide. 15:45 X16:30 0.75 RURD SLIK AF _ _RD and release unit. Report Date: 10/13/2009 Job Category: COMPLETION 24 Hr Summary Well venting 300 MCFD @ 190 psi and 25 BWPD. MIRU BJ Coiltech. RIH w/ 3/8" capillary string to 8535' MD RKB and tag probable till. PU to 8463' (Module 3) and spot 4 gals foamer. Monitor well. RD and put foamer on @ 3 gals /day. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:30 09:15 1.75 SAFETY MTG AF Held PJSM w/ Expro, ASRC, and operator. Discussed sim ops, emergency procedures, manlift /crane ops, and environmental awareness. Obtained safe work permit. 09:15 10:45 1.50 RURD COIL AF RU Dynacoil unit and equipment. Set FCV to 3400 psi. Change out tree cap and install wellhead adapter. 10:45 11:45 1.00 TEST EQIP AF Pull test FCV to 500lbs, good test. Pull test cap string to 24001bs, good test. Pressure test equipment to 2100 psi, good test. 11:45 13:45 2.00 RUNPUL COIL AF RIH w/ 3/8" capillary string, 3/8" x 7.25" FCV, 3/8" x 0.8" adapter, and 2.2" x 11.75" centralizer. Tag @ 8535' MD RKB and WT. Probable 61l5' above Module 2. PU to 8463' (middle of Module 3) and set cap string. 13:45 15:45 2.00 WAITON EQIP CS LOWE Wait on bulk foamer to fill string and spot outside string. 15:45 16:30 0.75 PUMP TRET AF Fill string with foamer (28 gals) and spot 4 gals outside string. 16:30 18:15 1.75 FLOW CHEK AF Monitor well for foamer response. WHP began dropping after 20 min, and fluid to surface after 45 min. WHP dropped to 0 psi and well bringing up water - water to surface — 5 bbls. Trace amounts of gas. 18:15 20:30 2.25 RURD COIL AF RD injector head and Dynacoil equipment. Hook up chemical feed and PT to 2500 psi. Good test. Turn foamer on @ 3 gals /day. Sign out, turn in work permit, and leave location. www.peloton.com Report Printed: 11/2/2009 A .. Company:, Marathon Job Number: 2131526 Calculation Method: Minimum Curvature Field: Beaver Creek Magnetic DecI.: 18.88 Proposed Azimuth: 199.286° MI MI Borough Kenai Alaska Grid Corr.: n/a Depth Reference: RKB INTEQ Well Name: BC -19 Total Survey Corr.: 18.88 Tie Into: Surface Rig: Glacier #1 Target Info: Kick -Off 3,000' Build 3/100' , hold 31.25 then drop to vert. Tool Survey Inc! Azimuth Course TVD VS Coordinates Closure DLS Build Rate Walk Rate Tool No. Type Depth (ft) (°) ( Lgth (ft) (ft) (ft) N/S (ft) E/W (ft) Dist (ft) Ang ( ( °/100') ( °/100') ( °/100') Face Comments 1 Tie in 0 0.00 0.00 0 0.00 0.00 0.00 N 0.00 E 2 MWD 214 0.98 53.06 214 213.99 -1.52 1.10 N 1.46 E 1.83 53.06 0.46 0.46 24.79 0 NaviTrak /Magcorr 3 MWD 334 0.98 58.69 120 333.97 -3.17 2.25 N 3.16 E 3.88 54.55 0.08 0.00 4.69 93 R NaviTrak / Magcorr 4 MWD 454 1.07 58.08 120 453.95 -4.83 3.38 N 4.99 E 6.02 55.91 0.08 0.08 -0.51 7 L NaviTrak / Magcorr 5 MWD 574 1.22 60.35 120 573.93 -6.67 4.60 N 7.05 E 8.42 56.87 0.13 0.13 1.89 18 R NaviTrak / Magcorr 6 MWD 694 1.58 62.17 120 693.89 -8.85 6.00 N 9.62 E 11.34 58.04 0.30 0.30 1.52 8 R NaviTrak / Magcorr • 7 MWD 817 1.30 64.17 123 816.85 -11.08 7.40 N 12.38 E 14.42 59.11 0.23 -0.23 1.63 171 R NaviTrak / Magcorr 8 MWD 944 1.23 69.95 127 943.82 -12.96 8.50 N 14.95 E 17.20 60.39 0.11 -0.06 4.55 122 R NaviTrak / Magcorr 9 MWD 1070 1.42 68.34 126 1069.79 -14.84 9.54 N 17.68 E 20.09 61.65 0.15 0.15 -1.28 12 L NaviTrak / Magcorr 10 MWD 1196 1.51 67.70 126 1195.75 -16.97 10.74 N 20.66 E 23.29 62.53 0.07 0.07 -0.51 11 L NaviTrak / Magcorr 11 MWD 1322 1.66 71.53 126 1321.70 -19.19 11.95 N 23.93 E 26.75 63.46 0.15 0.12 3.04 37 R NaviTrak / Magcorr 12 MWD 1448 1.61 69.52 126 1447.65 -21.44 13.15 N 27.32 E 30.32 64.30 0.06 -0.04 -1.60 132 L NaviTrak / Magcorr 13 MWD 1574 1.63 68.07 126 1573.60 -23.75 14.44 N 30.64 E 33.87 64.77 0.04 0.02 -1.15 65 L NaviTrak / Magcorr 14 MWD 1701 1.79 69.27 127 1700.54 -26.21 15.82 N 34.17 E 37.65 65.16 0.13 0.13 0.94 13 R NaviTrak / Magcorr 15 MWD 1828 1.66 67.24 127 1827.48 -28.72 17.23 N 37.72 E 41.47 65.45 0.11 -0.10 -1.60 0 L NaviTrak / Magcorr 16 MWD 1955 1.66 69.76 127 1954.43 -31.12 18.58 N 41.14 E 45.14 65.70 0.06 0.00 1.98 91 R NaviTrak / Magcorr 17 MWD 2081 1.48 63.75 126 2080.38 -33.45 19.93 N 44.32 E 48.59 65.79 0.19 -0.14 -4.77 141 L NaviTrak / Magcorr 18 MWD 2207 1.61 57.78 126 2206.34 -35.99 21.59 N 47.27 E 51.97 65.45 0.16 0.10 -4.74 54 L NaviTrak / Magcorr 19 MWD 2334 1.68 65.27 127 2333.28 -38.68 23.32 N 50.47 E 55.60 65.20 0.18 0.06 5.90 76 R NaviTrak / Magcorr 20 MWD 2457 1.52 56.80 123 2456.24 -41.23 24.97 N 53.48 E 59.02 64.97 0.23 -0.13 -6.89 128 L NaviTrak / Magcorr 21 MWD 2567 1.94 60.23 110 2566.19 -43.79 26.69 N 56.31 E 62.32 64.64 0.39 0.38 3.12 16 R 12.25 hole 22 MWD 2630 1.58 76.70 63 2629.16 -45.07 27.42 N 58.08 E 64.23 64.73 0.98 -0.57 26.14 133 R NaviTrak / Magcorr • 23 MWD 2693 1.11 132.65 63 2692.14 -45.29 27.21 N 59.38 E 65.31 65.38 2.11 -0.75 88.81 136 R NaviTrak / Magcorr 24 MWD 2756 1.15 157.01 63 2755.13 -44.58 26.21 N 60.07 E 65.54 66.43 0.76 0.06 38.67 97 R NaviTrak / Magcorr 25 MWD 2820 1.08 161.80 64 2819.12 -43.63 25.05 N 60.51 E 65.49 67.51 0.18 -0.11 7.48 129 R NaviTrak / Magcorr 26 MWD 2883 1.87 179.03 63 2882.10 -42.19 23.46 N 60.72 E 65.09 68.88 1.42 1.25 27.35 38 R NaviTrak / Magcorr 27 MWD 2945 2.90 180.20 62 2944.04 -39.76 20.88 N 60.73 E 64.22 71.03 1.66 1.66 1.89 3 R NaviTrak / Magcorr 4 28 MWD 3009 3.71 190.16 64 3007.94 -36.19 17.22 N 60.36 E 62.76 74.08 1.55 1.27 15.56 40 R NaviTrak /Magcorr 29 MWD 3072 4.64 189.90 63 3070.77 -31.66 12.70 N 59.56 E 60.90 77.96 1.48 1.48 -0.41 1 L NaviTrak /Magcorr 30 MWD 3135 5.16 188.55 63 3133.54 -26.36 7.39 N 58.70 E 59.16 82.82 0.85 0.83 -2.14 13 L NaviTrak /Magcorr 31 MWD 3197 6.19 193.58 62 3195.23 -20.30 1.39 N 57.50 E 57.52 88.62 1.84 1.66 8.11 28 R NaviTrak /Magcorr 32 MWD 3261 7.71 196.97 64 3258.76 -12.58 6.08 S 55.44 E 55.77 96.25 2.46 2.38 5.30 17 R NaviTrak / Magcorr 33 MWD 3323 9.13 202.47 62 3320.09 -3.51 14.60 S 52.34 E 54.34 105.58 2.63 2.29 8.87 32 R NaviTrak / Magcorr 34 MWD 3386 10.78 205.12 63 3382.14 7.34 24.55 S 47.93 E 53.85 117.12 2.72 2.62 4.21 17 R NaviTrak / Magcorr 35 MWD 3450 12.63 207.28 64 3444.81 20.23 36.19 S 42.18 E 55.58 130.63 2.97 2.89 3.37 14 R NaviTrak / Magcorr 36 MWD 3512 14.98 208.09 62 3505.01 34.86 49.29 S 35.30 E 60.63 144.39 3.80 3.79 1.31 5 R NaviTrak / Magcorr 37 MWD 3576 17.25 209.52 64 3566.49 52.38 64.84 S 26.73 E 70.14 157.60 3.60 3.55 2.23 11 R NaviTrak / Magcorr 38 MWD 3639 19.20 209.30 63 3626.33 71.77 82.01 S 17.06 E 83.76 168.25 3.10 3.10 -0.35 2 L NaviTrak / Magcorr 39 MWD 3701 20.60 208.49 62 3684.63 92.58 100.49 S 6.86 E 100.72 176.09 2.30 2.26 -1.31 12 L NaviTrak / Magcorr • 40 MWD 3764 22.73 208.68 63 3743.17 115.53 120.91 S 4.26 W 120.98 182.02 3.38 3.38 0.30 2 R NaviTrak / Magcorr 41 MWD 3828 24.94 208.36 64 3801.71 141.06 143.63 S 16.61 W 144.59 186.60 3.46 3.45 -0.50 3 L NaviTrak / Magcorr 42 MWD 3892 26.32 209.06 64 3859.41 168.37 167.91 S 29.91 W 170.55 190.10 2.21 2.16 1.09 13 R NaviTrak / Magcorr 43 MWD 3954 27.48 209.28 62 3914.70 196.00 192.40 S 43.58 W 197.28 192.76 1.88 1.87 0.35 5 R NaviTrak / Magcorr 44 MWD 4018 29.10 206.91 64 3971.06 225.97 219.16 S 57.85 W 226.67 194.79 3.08 2.53 -3.70 36 L NaviTrak / Magcorr 45 MWD 4081 30.17 205.84 63 4025.82 256.88 247.07 S 71.69 W 257.26 196.18 1.89 1.70 -1.70 27 L NaviTrak / Magcorr 46 MWD 4144 31.26 204.02 63 4079.98 288.90 276.25 S 85.24 W 289.10 197.15 2.27 1.73 -2.89 41 L NaviTrak / Magcorr 47 MWD 4208 31.58 203.63 64 4134.60 322.16 306.77 S 98.72 W 322.26 197.84 0.59 0.50 -0.61 33 L NaviTrak / Magcorr 48 MWD 4271 31.79 203.99 63 4188.21 355.15 337.05 S 112.08 W 355.19 198.39 0.45 0.33 0.57 42 R NaviTrak / Magcorr 49 MWD 4334 31.97 203.62 63 4241.70 388.32 367.49 S 125.50 W 388.33 198.86 0.42 0.29 -0.59 48 L NaviTrak / Magcorr 50 MWD 4397 32.04 204.81 63 4295.13 421.58 397.94 S 139.20 W 421.58 199.28 1.01 0.11 1.89 84 R NaviTrak / Magcorr 51 MWD 4459 31.55 203.58 62 4347.83 454.13 427.73 S 152.59 W 454.14 199.63 1.31 -0.79 -1.98 128 L NaviTrak / Magcorr 52 MWD 4523 31.17 203.86 64 4402.48 487.33 458.23 S 165.99 W 487.36 199.91 0.64 -0.59 0.44 159 R NaviTrak / Magcorr 53 MWD 4650 30.99 202.47 127 4511.25 552.74 518.50 S 191.78 W 552.83 200.30 0.58 -0.14 -1.09 105 L NaviTrak / Magcorr 54 MWD 4776 31.31 201.79 126 4619.08 617.84 578.87 S 216.33 W 617.97 200.49 0.38 0.25 -0.54 48 L NaviTrak / Magcorr 55 MWD 4902 30.95 202.51 126 4726.93 682.89 639.20 S 240.89 W 683.09 200.65 0.41 -0.29 0.57 134 R NaviTrak / Magcorr 56 MWD 5028 31.34 201.38 126 4834.77 747.99 699.65 S 265.24 W 748.24 200.76 0.56 0.31 -0.90 57 L NaviTrak / Magcorr 57 MWD 5154 31.34 202.11 126 4942.39 813.46 760.52 S 289.51 W 813.76 200.84 0.30 0.00 0.58 90 R NaviTrak / Magcorr 58 MWD 5281 31.31 202.32 127 5050.88 879.40 821.64 S 314.48 W 879.77 200.94 0.09 -0.02 0.17 105 R NaviTrak / Magcorr 59 MWD 5407 31.98 202.40 126 5158.14 945.41 882.78 S 339.63 W 945.86 201.04 0.53 0.53 0.06 4 R NaviTrak / Magcorr 60 MWD 5533 32.68 201.73 126 5264.61 1012.72 945.23 S 364.94 W 1013.23 201.11 0.62 0.56 -0.53 27 L NaviTrak / Magcorr 61 MWD 5659 31.52 201.41 126 5371.35 1079.62 1007.49 S 389.55 W 1080.18 201.14 0.93 -0.92 -0.25 172 L NaviTrak / Magcorr 62 MWD 5785 30.52 202.16 126 5479.33 1144.49 1067.79 S 413.65 W 1145.11 201.18 0.85 -0.79 0.60 159 R NaviTrak / Magcorr 63 MWD 5848 30.23 201.46 63 5533.68 1176.31 1097.37 S 425.48 W 1176.96 201.19 0.73 -0.46 -1.11 130 L NaviTrak /Magcorr 64 MWD 5911 29.24 202.54 63 5588.38 1207.52 1126.34 S 437.18 W 1208.21 201.21 1.79 -1.57 1.71 152 R NaviTrak /Magcorr 65 MWD 5975 28.30 202.42 64 5644.48 1238.28 1154.80 S 448.96 W 1239.00 201.25 1.47 -1.47 -0.19 177 L NaviTrak /Magcorr 66 MWD 6038 27.12 202.85 63 5700.26 1267.52 1181.84 S 460.23 W 1268.29 201.28 1.90 -1.87 0.68 171 R NaviTrak / Magcorr 67 MWD 6101 25.72 201.93 63 5756.67 1295.51 1207.75 S 470.92 W 1296.31 201.30 2.32 -2.22 -1.46 164 L NaviTrak / Magcorr 68 MWD 6164 24.56 201.77 63 5813.71 1322.25 1232.59 S 480.88 W 1323.08 201.31 1.84 -1.84 -0.25 177 L NaviTrak / Magcorr 69 MWD 6228 23.30 200.13 64 5872.20 1348.19 1256.83 S 490.17 W 1349.03 201.31 2.23 -1.97 -2.56 153 L NaviTrak / Magcorr 70 MWD 6291 22.19 199.06 63 5930.30 1372.55 1279.78 S 498.34 W 1373.38 201.28 1.88 -1.76 -1.70 160 L NaviTrak / Magcorr 71 MWD 6355 21.21 199.26 64 5989.77 1396.21 1302.13 S 506.11 W 1397.03 201.24 1.54 -1.53 0.31 176 R NaviTrak / Magcorr 72 MWD 6418 20.41 199.33 63 6048.66 1418.60 1323.25 S 513.50 W 1419.39 201.21 1.27 -1.27 0.11 178 R NaviTrak / Magcorr 73 MWD 6481 19.40 198.98 63 6107.89 1440.04 1343.51 S 520.54 W 1440.83 201.18 1.61 -1.60 -0.56 173 L NaviTrak / Magcorr 74 MWD 6544 18.30 198.84 63 6167.51 1460.40 1362.77 S 527.14 W 1461.17 201.15 1.75 -1.75 -0.22 178 L NaviTrak / Magcorr 75 MWD 6608 16.71 198.73 64 6228.55 1479.65 1380.99 S 533.34 W 1480.40 201.12 2.48 -2.48 -0.17 179 L NaviTrak / Magcorr 76 MWD 6671 15.19 198.48 63 6289.12 1496.96 1397.40 S 538.86 W 1497.70 201.09 2.42 -2.41 -0.40 178 L NaviTrak / Magcorr 77 MWD 6734 13.47 199.06 63 6350.16 1512.55 1412.16 S 543.87 W 1513.28 201.06 2.74 -2.73 0.92 176 R NaviTrak / Magcorr 78 MWD 6798 12.01 197.87 64 6412.58 1526.66 1425.55 S 548.35 W 1527.38 201.04 2.32 -2.28 -1.86 170 L NaviTrak / Magcorr 79 MWD 6861 10.55 199.14 63 6474.36 1538.98 1437.24 S 552.25 W 1539.69 201.02 2.35 -2.32 2.02 171 R NaviTrak / Magcorr 80 MWD 6925 9.36 200.22 64 6537.40 1550.04 1447.65 S 555.97 W 1550.75 201.01 1.88 -1.86 1.69 172 R NaviTrak / Magcorr 81 MWD 6988 8.10 201.02 63 6599.67 1559.60 1456.61 S 559.34 W 1560.31 201.01 2.01 -2.00 1.27 175 R NaviTrak / Magcorr 82 MWD 7052 6.97 202.44 64 6663.11 1567.99 1464.40 S 562.44 W 1568.70 201.01 1.79 -1.77 2.22 171 R NaviTrak / Magcorr 83 MWD 7115 5.92 200.98 63 6725.71 1575.05 1470.97 S 565.06 W 1575.77 201.01 1.69 -1.67 -2.32 172 L NaviTrak / Magcorr 84 MWD 7178 4.93 203.56 63 6788.43 1581.00 1476.49 S 567.30 W 1581.72 201.02 1.62 -1.57 4.10 167 R NaviTrak / Magcorr 85 MWD 7242 3.39 201.83 64 6852.26 1585.63 1480.76 S 569.11 W 1586.36 201.02 2.41 -2.41 -2.70 176 L NaviTrak / Magcorr 86 MWD 7305 1.64 206.91 63 6915.20 1588.39 1483.30 S 570.21 W 1589.12 201.03 2.80 -2.78 8.06 175 R NaviTrak / Magcorr 87 MWD 7368 0.98 193.77 63 6978.18 1589.82 1484.62 S 570.74 W 1590.55 201.03 1.14 -1.05 -20.86 162 L NaviTrak / Magcorr 88 MWD 7494 0.60 184.44 126 7104.17 1591.53 1486.33 S 571.05 W 1592.25 201.02 0.32 -0.30 -7.40 166 L 8.50 Hole 89 MWD 7683 0.62 163.41 189 7293.16 1593.31 1488.29 S 570.84 W 1594.01 200.98 0.12 0.01 -11.13 95 L 8.50 Hole • 90 MWD 7874 0.79 157.10 191 7484.14 1595.13 1490.50 S 570.03 W 1595.78 200.93 0.10 0.09 -3.30 28 L 8.50 Hole 91 MWD 8063 0.78 138.00 189 7673.13 1596.71 1492.65 S 568.66 W 1597.31 200.86 0.14 -0.01 -10.11 102 L 8.50 Hole 92 MWD 8253 0.89 145.09 190 7863.10 1598.19 1494.83 S 566.95 W 1598.73 200.77 0.08 0.06 3.73 47 R 8.50 Hole 93 MWD 8443 0.84 135.65 190 8053.08 1599.67 1497.03 S 565.13 W 1600.15 200.68 0.08 -0.03 -4.97 114 L 8.50 Hole 94 MWD 8634 1.15 122.83 191 8244.05 1600.75 1499.07 S 562.54 W 1601.15 200.57 0.20 0.16 -6.71 42 L 8.50 Hole 95 MWD 8824 0.91 129.62 190 8434.02 1601.72 1501.07 S 559.78 W 1602.05 200.45 0.14 -0.13 3.57 156 R 8.50 Hole 96 MWD 9014 1.22 124.78 190 8623.99 1602.78 1503.18 S 556.96 W 1603.05 200.33 0.17 0.16 -2.55 19 L 8.50 Hole 97 Project 9068 1.22 124.78 54 8677.98 1603.09 1503.84 S 556.01 W 1603.33 200.29 0.00 0.00 0.00 Project to bit f t r Marathon BC -19 Run #2 RFT FORMATION TESTER TEST SUMMARY Test Hyd Pres Hyd Pres Totol Flow Drawdown Final Shut- Interval No. Depth TVD Before After Volume Rate Press in Press PSI /TVD Remarks Name 1 7400.07 6947.27 3611.00 3611.00 5.0 0.5 3683.00 19.00 0.00 GOOD LB15 2 8888.99 8399.99 4372.00 4371.00 5.0 0.5 3634.00 4208.00 0.50 GOOD LB33 2 8888.99 8399.99 4372.00 4371.00 5.0 1.0 3434.00 4206.00 0.50 GOOD LB33 3 8877.04 8487.04 4364.00 4365.00 5.0 0.5 3706.00 4273.00 0.50 GOOD LB33 9 8676.00 8286.00 4263.00 4263.00 5.0 1.0 300.00 4038.00 0.49 GOOD LB30 18 7579.00 7189.00 3705.00 3704.00 5.0 0.5 2698.00 1838.00 0.26 GOOD LB17 18 7579.00 7189.00 3705.00 3704.00 5.0 1.0 788.00 1837.00 0.26 GOOD LB17 20 7590.00 7200.00 3709.00 3709.00 5.0 0.5 2362.00 2049.00 0.28 GOOD LB17 22 7604.00 7214.00 3716.00 3716.00 5.0 0.5 3697.00 2826.00 0.39 GOOD LB18 • X34 8180.00 7790.00 4009.00 4010.00 5.0 0.5 2016.00 3844.00 0.49 GOOD LB25 i X35 8183.00 7793.00 4012.00 4011.00 5.0 0.5 138.00 3665.00 0.47 GOOD LB25 X35 8183.00 7793.00 4012.00 4011.00 15.0 1.0 86.00 3655.00 0.47 GOOD LB25 X36 8416.00 8026.00 4130.00 4130.00 5.0 0.5 209.00 4121.00 0.51 GOOD LB28 X36 8416.00 8026.00 4130.00 4130.00 15.0 1.0 2061.00 4110.00 0.51 GOOD LB28 X39 8437.00 8047.00 4141.00 4141.00 5.0 0.5 3575.00 4102.00 0.51 GOOD LB28 X42 8482.00 8092.00 4165.00 4162.00 5.0 0.5 4149.00 4147.00 . 0.51 GOOD LB28 X46 7846.00 7456.00 3840.00 3840.00 5.0 0.5 3697.00 1725.00 0.23 GOOD LB20 X47 7842.00 7452.00 3838.00 3837.00 5.0 0.5 1693.00 1404.00 0.19 GOOD LB20 X47 7842.00 7452.00 3838.00 3837.00 15.0 1.0 1404.00 1393.00 0.19 GOOD LB20 X49 7835.00 7445.00 3834.00 3833.00 5.0 0.5 422.00 1389.00 0.19 GOOD LB20 X51 7824.00 7434.00 3827.00 3827.00 5.0 0.5 163.00 1387.00 0.19 GOOD LB20 X51 7824.00 7434.00 3827.00 3827.00 15.0 1.0 67.00 1443.00 0.19 GOOD LB20 X53 7812.00 7422.00 3820.00 3820.00 5.0 0.5 316.00 1690.00 0.23 GOOD LB20 X56 7788.00 7398.00 3809.00 3810.00 5.0 0.5 738.00 1065.00 0.14 GOOD LB20 X57 7764.00 7374.00 3797.00 3797.00 5.0 0.5 1814.00 1090.00 0.15 GOOD LB20 X58 7709.00 7319.00 3768.00 3770.00 5.0 0.5 264.00 2018.00 0.28 GOOD LB19 • X65 8679.00 8289.00 4262.00 4262.00 5.0 0.5 717.00 4019.00 0.48 GOOD LB30 X71 8553.00 8163.00 4199.00 4198.00 5.0 0.5 1700.00 4115.00 0.50 GOOD LB29 X72 8543.00 8153.00 4193.00 4193.00 5.0 0.5 2615.00 3979.00 0.49 GOOD LB29 X82 8015.00 7625.00 3926.00 3926.00 5.0 0.5 4053.00 1534.00 0.20 GOOD LB23 X83 8007.00 7617.00 3922.00 3922.00 5.0 0.5 4118.00 1722.00 0.23 GOOD LB23 X84 7994.00 7604.00 3915.00 3915.00 5.0 0.5 3887.00 1645.00 0.22 GOOD LB22 X87 7910.00 7520.00 3904.00 3873.00 5.0 0.5 1807.00 3047.00 0.41 GOOD LB21 X88 7908.00 7518.00 3872.00 3871.00 5.0 0.5 3605.00 3053.00 0.41 GOOD LB21 X91 7905.00 7515.00 3870.00 3870.00 5.0 0.5 1277.00 3070.00 0.41 GOOD LB21 1 lik i � Y' 9 r ,i G ut- II SEAN PARNELL, GOVERNOR ALASKA. OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mr. Kevin Skiba Regulatory Compliance Technician Marathon Alaska Production LLC P.O. Box 1949 Kenai, Alaska 99611 -1949 Re: Beaver Creek Field, Beluga Formation, Beaver Creek Unit # 19 Sundry Number: 309 -347 Dear Mr. Skiba: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been I requested. Sincerely, Daniel T. Seamount Chair p( DATED this 0 day of October, 2009 Encl. 1 0 Marathon Alaska Production LLC Alaska Asset Team M Marathon P.O. Box 1949 MARATHON e taska Production LLC Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 October 2, 2009 RECEIVED Mr. Winton Aubert OCT 0 2 2009 Alaska Oil & Gas Conservation Commission Alaska Oil & Gas Cons. Commission 333 W 7 Ave Anchorage Anchorage, Alaska 99501 Reference: 10 -403 Application for Sundry Approvals M Field: Beaver Creek Field Well: Beaver Creek #19 Dear Mr. Aubert: Attached is the10 -403 Application for Sundry Approvals requesting approval to install a 3/8" capillary string in BC -19 well. Efforts are currently underway to kick -off BC -19 with production routed through a gas venting separator system. At present, the well is only capable of flowing a minimal amount of gas through this setup. The well does not have enough pressure to lift the wellbore fluids on its own. Marathon would like to aid this process by lightening up the wellbore fluids with foamer and expedite the well kick -off operation before the rent venting approval expires. The target setting depth of the capillary string is 7,905 IMD. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, a 1 k /., . e . 4 7 0 ° 1/4 . - .i 8 - ' N ' k - " L -1' Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Cap - String Installation Procedure Houston Well File Current Well Schematic Kenai Well File KJS RECEIVED �� V� Qie /530 . 0 i41 STATE OF ALASKA 0 C T 0 2 2009 1144A -- � V ALASKA OIL AND GAS CONSERVATION COMMISSION 101S12,0 09 APPLICATION FOR SUNDRY APPROVALS raslca ail & Gas Cons. Commission 20 AAC 25.280 ,Anchorage 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown❑ Perforate ❑ Waiver Other el Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Install Capillary Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ String - / 2. Operator Name: Marathon Alaska Production LLC 4. Current Well Class: 5. Permit to Drill Number: Development El . Exploratory ❑ 208 -1230 ' 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20579- 00 -00." 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes El No Beaver Creek Unit #19 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): A - 028083 - • 179' (21' AGL) Beaver Creek Field / Beluga Formation 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9,068' . 8,678' - 9,016' 8,626' NA NA Casing Length Size MD TVD Burst Collapse Structural f Conductor 85' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,489' 13 -3/8" 2,510' 2,509• 3,450 psi 1,950 psi 5,020 psi 2,260 psi Intermediate 7,426' 9 -5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production 9,031' 3 -1/2" 9,052' 8,662' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7,576' - 8,677' 7,394' - 8,287' Excape 3 -1/2" L -80 9,052' Capillary Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development el - Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: October 5 , 2009 Oil ❑ Gas II2 _ Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: V.(. A ye i c7 Z(Z, 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician Signature h n Date 7 15 1 (907) 283 - 1371 October 2, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 34E7 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: 1 Subsequent Form Required: I 0 — 4-0 4 I /a/ APPROVED BY Approved by. + COMMISSIONER THE COMMISSION Date: Fora 10-40 Revised 06/2006 it R 1 G I N A L 6 " 06 - 010 ,4 1 c Submit in Duplicate Li MARATHON MARATHON ALASKA PRODUCTION LLC ALASKA ASSET TEAM BC 19 Pad 3 • Capstring Installation Procedure WBS: To Be Submitted APPROVALS: Michael Dammeyer 10/01/09 Michael Dammeyer KEN D. WALSH 10Q/09 Ken Walsh Lyndon Ibele Author: Michael Dammeyer Latest Version Date: 9/24/09 Well Status: 10/1/09: 1 MM @ -75 psi FWHP, not stable, soapsticks. Wellhouse off. History: • October 2009: PLT Planned. • 09/30/09: Recovered 180 bbl fluid total. i • 09/28/09: Recovered 100 bbl fluid total. • 09/25/09: Begin pumping foamer down red control line (8 gpd). • 09/22/09: Peri 7818'- 7840'. LB 20. • 09/11/09: Peri 7784'-7794'. • 07/18/09: PT survey tag 8697', fluid level 7886'. • 06/22/09: PT tag bailer 2" @ 8710'. • 06/04/09: Per i 8410 -8420, 8370 -8376 • 05/23/09: Jet well dry to 8700 returned 45 bbls • 04/15/09: PT tag 8882'. • 04/01/09: Frac stim mods, cleanout N2. Objective: Install capillary string (3/8" 2205 0.049" WT) for delivering foamer to alleviate liquid loading. Capstring Installation Procedure MDD Page 1 09/29/2009 1 • Procedure: Capstring Set Depth: 7,905' (7,515' TVD) - mod 5 - depth may change based upon upcoming PLT. Coil length: 9,000' Max OD of BHA: 2.250" centralizer Min ID of 3.5" tubing: 2.992" Disconnect power to wellhouse (call electrician). MI manlift. MI crane, arrange for crane operator. Move wellhouse. On truck: Coil, Well Head Adapter - Long w/ o -ring (WHA). Paperwork: WBD, Sundry, Work Permit, Well Ops transfer sheet. 1. MIRU BJ Dyna -Coil unit. Place liner around wellhead/truck. Set outriggers & ground. Flag off location. 2. Shut swab valve, pull tree -cap flange, replace blanking plug w/ WHA (o -ring). MU flange. Add snap ring. 3. Set Fluid Control Valve pressure to head pressure (so CICM surface line pressure equals BHP) = (Setting TVD 7515')(0.433 psi/ft H20)(1.036 foamer SG) = 3370 psi. s' 4. Install valve on the surface end of tubing. 5. P/U Dyna -Coil injector with crane. Run 3/8" coil into injector chains. Adjust tubing straightener. 6. Run coil all the way through injector. Cut off non - straight tubing end (typically 5 -15 ft). V 7. Run the coil through BJ pack -off (hold pack -off with support pin). 8. Attach BHA. "Pull test" BHA to 500 lbs to verify ferrule is secure. Pull support pin. Gage BHA. 9. Lift injector. Thread pack -off into 2 -7/8" female WHA (use teflon & lube). Hold WHA w/ tong/wrench. 10. Lower injector head carefully on to the pack -off (line up slot with the pack -offs 1/4" x 4" nipple). 11. Attach hydraulic hoses to hydraulic rams. Attach McOH hose to inlet valve. Insert snubbing guides. 12. Wrap wellhead and packoff with absorbents to catch drips. revisit JSA 13. Pressure hydraulic rams (top seal, '/4" nipple) on pack -off to 3000 psi. V 14. Pressure test well head adapter using McOH at 1.5x S1WHP. Watch for leaks carefully. Release pressure. 15. Open swab valve. Watch for leaks at pack -off. 16. Adjust hydraulic rams (top seal) pressure to minimum level (100 -500 psi). Ensure Rattiguns are open. 17. Set depth counter. RIB 100 fpm (lube/guide coil as needed), tag bottom, pull up to set depth of 7905'. - revisit JSA 18. Set slips. Set Rattiguns. Release pressure on upper hydraulic seal (to protect operator). Watch for leaks. 19. Lift injector head off and away from well. 20. Pressure hydraulic rams (top seal) on pack -off to 2500 psi. Close needle valve and insert hydraulic plug. 21. Pull tubing excess through injector, or split injector head to remove tubing if over 500' of excess coil. 22. Connect tubing to Swagelok injection manifold (valve, gauge, filter, gauge, valve) to CICM line. 23. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 24. Pump foamer into capstring until fluid packed (if not already full). 25. Hookup injection line to CICM. Start foamer at 1 gpd. 26. Replace well house. Be careful of the tubing "bend" as it goes back inside if it extends through the roof. 27. RDMO. Cleanup site. Sign -out. Fill out Well Ops Transfer Sheet. Considerations Instructions and Planning: WBD: \\ kgfrs600 .kgf.moc.com\kgfshr\Alaska Wellbore Diagrams \BC 19 WBD 07- 17- 09.xls Pictures: \\kgfrs600.kgf.moc.com kgfshr\Alaska Wells Group \Procedures\Dvna- Coil \Caostring Installation Pictures.doc Capstring Installation Procedure MDD Page 2 09/29/2009 • • • Permit #: 208 -1230 Pad 3 �� API #: 50 -133- 20579- 00 -S1 Prop. Des: A- 028083 I 1,196' FNL, 1,65T FWL, KB elevation: 182' (21' AGL) Sec. 34, T7N, R1 OW, S.M. Latitude: 60 39' 28.14" N Conductor Longitude: 151° 01' 10.61" W I X: 317,469.12 (NAD 27) 20 Top Bottomf -LIM Y: 2,433,994.89 (NAD 27) 1 MD 0' 106' Spud: 9/1412008 1 TVD 0' 106' TD: 10101/2008 Rig Released: 1/14/09 12:00 hrs Surface Casing PA #: 891008868A 13 -3/8" J -55 & L -80 68 ppf BTC Top Bottom MD 0' 2,510' � TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 ppg, Type 1 cmt . Tree crossing = 4 - 3/4" Otis 113 sks (50 bbls) cmt to surface Intermediate Casing 9 -5/8" L -80 40 ppf Butt Top Bottom MD 0' 7,447' Top of 3 - 1/2" Tubing Cement , i TVD 0' 7,057' @ 6,470' MD ,„ 12 -1/4" Hole Cmt wl 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w/ 160 sks (34 bbls) of Class G Tail @ 15.8 ppg. iiin Production Tubing N 3 3-1/2" L -80 9.3 ppf EUE Top Bottom MD 0' 9,052' ND 0' 8,662' + 8-1/2" Hole Cmt w1 807 sks (168 bbls) _..:.� e Class G @ 15.8 ppg, 100% returns. C r h* - 1 1 1 77 Excape System Details Excape System Details i ? - 7 Excape modules placed Flappers MD (RKB): YY= - Red contol line fires modules 5 -7 control line fires Modules 1 -4 Module 7 = 7,604' Module 6 = 7,738' -r- --. - Module 5 = 7,935' Beluga Perfs MD (RKB): Module 4 = 8,208' a-i i ' Gun MD Date Module 3 = 8,495' = Module 7 = 7,576' - 7,586' (future) Module 2 = 8,575' I_. ' Module 6 = 7,710' - 7,720' (future) i I LB -20 2 -3/8" 6spf = 7,784' - 7,794' (9/10/09) Module 1 = NA ! ? i LB -20 2-3/8" 6spf = 7,818' 7,828' (9/22/09) LB -20 2 -3/8" 6spf = 7,830' - 7,840' (9/22/09) Module 5 = 7,900' - 7,910' (4/5/09) L B -23 2 -3/8" 6spf = 7,988' - 8,016' (9/22/09) Module 4 = 8,173' - 8,183' (4/5/09) ` Tagged Fill @ 8,690' MD (7/17/2009) I - 1 2 -3/8" 4spf = 8,370' - 8,376' (6/3/09) w/ (2.625" OD) Dummy gun 2 -3/8" 4spf = 8,410' - 8,420' (6/3/09) Module 3 = 8,458' - 8,468' (4/5/09) Module 2 = 8,540' - 8,550' (413/09) Module 1 = 8,667' - 8,677' (4/1/09) TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Well Name & Number: Beaver Creek 19 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska ' Country: USA Perforations (MD): 7,784' - 8,677' (TVD):_ 7,394' - 8,287' Angle @ KOP and Depth: -1.2 / 100' @ 2,800 ft Angle /Perfs: ~0.8' Dated Completed: 4/1/2009 Completion Fluid: Revised by: Kevin Skiba Last Revison Date: 9/30/2009 Beaver Creek 19 - Request to ed venting on well for two (2) weeks Page 1 of 1 Aubert, Winton G (DOA) Z d S - 123 From: Rang, Craig L. [crangcmarathonoil.com] Sent: Monday, September 28, 2009 3 :04 PM To: Aubert, Winton G (DOA) Cc: Skiba, Kevin J.; Miranda, Kyle Subject: Seaver Creek 19 - Request to extend venting on well for two (2) weeks Wilton - per our phone conversation, I am requesting an extension on the venting of this well for an additional two weeks. The well was drilled in 2008 and completed using the Excape completion system in early 2009. The well did not respond well to stimulation and 4 attempts to jet the well in with N2 have not been successful. Additional gas shows have been perforated between Modules 5 and 6 and between Modules 4 and 5. After perforating and jetting the well in with N2, the well has started making a small quantity of gas. The flowing wellhead pressure was original 10# and making an estimated 250 Mcfld immediately after jetting the well in for the fifth time. Since then the gas rate has slightly increased and the wellhead pressure is up to 60#. In order to get the well on production, the well has to get up to 340# wellhead pressure to meeting Enstar's gas sales line pressure. With additional venting, I am very hopeful that this well can be made productive. Please contact me if you should have any additional questions. Regards, Craig Rang 9/28/2009 BC -19 Perforation Additions Page 1 of 1 • Aubert, Winton G (DOA) From: Skiba, Kevin J. [kskiba e@marathonoil.com] Sent: Thursday, June 04, 2009 2:17 PM To: Aubert. Wnton G (DOA) Cc: Walsh, Ken; Rang, Craig L. Subject: BC -19 Perforation Additions Z.O ' / 23 Wnton, As discussed in our conversation earlier: *Marathon would like to add perforations to BC-19 well, between the Excape modules *Placement of the additional perforations would fall with in the approved Excape perforation interval of 7,576' - 8,677' MD *No additional sundry approval is required prior to perforating *Documentation of this work will be provided on the 10-407 sundry reporting form when the well completion work is done Please confirm or correct my understanding of our conversation. Thanks, Kevin Skiba Regulatory Compliance Technician Marathon Oil Company Office (907) 283 -1371 Fax (907) 283 -1350 6/4/2009 • 40 (; L E A `i T I 1- / 7 ' j ( d a, f ' 1 1\ (ill ,/ Li I f ` ! L r iL c / l SARAH PALIN, GOVERNOR ALASKA OI.i, AND GA / 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION / ANCHORAGE, ALASKA 99501 -3539 / PHONE (907) 279 -1433 FAX (907) 276 -7542 Craig Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 ( 3o — \ Re: Beaver Creek Field, Beluga Formation, BC #19 Sundry Number: 309 -003 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. %� Chair DATED this day of January, 2009 Encl. + - • • Marathon Oil Company M Marathon Alaska Asset Team P.O. Box 1949 M ARATHON Oil Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 January 6, 2009 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7 Ave RECEIVED Anchorage, Alaska 99501 JAN 0 7 2009 Alaska Reference: 10 - 403 Application for Sundry Approvals Oil & Gas Anc tsolae o nwiss Field: Beaver Creek Gas Field Well: Beaver Creek #19 Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for BC -19 well. The 3 -1/2" Excape casing was inadvertently set with elevated tension. This additional tension is causing excessive stress upon the casing which may lead to casing failure during the upcoming fracture stimulation. Marathon requests permission to release this excess tension by placing an extension between the top of the Excape casing and 3 -1/2" tubing hanger. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, .s gal Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Casing Intervention Procedure Houston Well File Current Well Schematic Kenai Well File Casing Extension Diagram KJS CLR L \ (Ake " STATE OF ALASKA �� I O� �' 1\� 2009 *l ALASOIL AND GAS CONSERVATION COMM JAN 0 7 .� . `" \ APPLICATION FOR SUNDRY APPROVALS I � 20 AAC 25.280 Alaska Oil & Gas Cons Othrr � 1. Type of Request: Abandon ❑ Suspend Operational shutdown❑ Perforate ❑ AIb� er ❑ \ Ill casing 0 . Repair well ❑ Plug Perforations ill Stimulate ill Time Ext Tension ❑ . Commisslo Change approved program ❑ Pull Tubing ❑ Perforate New Pool ill Re -enter Su Well ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Company Development 0 Exploratory ❑ 208 - 1230 - 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20579 - 00 - 00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 0 Beaver Creek #19 ' 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): Beaver Creek Field / _ A 028083 ' 179' (21' AGL) - Beluga Formation 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9,068' - 8,678' , 9,016' 8,626' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 85' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,489' 13 -3/8" 2,510' 2,509' 3,450 psi 1,950 psi 5,020 psi 2,260 psi Intermediate 7,426' 9 -5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production 9,031' 3 -1/2" 9,052' 8,662' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA 3 L - 80 9,052' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development 0 i Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: January 12 , 2009 Oil ❑ Gas 0 — Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature a..'r.' Phone (907) 283 -1372 Date January 6, 2009 U COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: '.. 003 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: 0 %/ APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: / / / 1 Form 10 -403 Revised 06/2006 " e JAN `2 1 2009 Submit in Duplicate . Qt( F 4 t \1aI • Beaver Creek #19 Casing Intervention Procedure January 5, 2009 1. MIRU Glacier #1 Drilling Rig. Make sure weight indicator is calibrated properly. 2. N/D 3 -1/16" 10M tree. Remove bonnet and have Vetco hands inspect tree for immediate reinstallation. Back out lock down screws on upper tubing head. 3. MIRU Expro and remove control line connections from top of tubing pack -off, pull pack -off to expose 3 -1/2" slip and bowl system. R/U (Qty. 2) 1/4" control line spools near wellhead at ground level. Pump through both lines to make sure there are no plugs or internal obstructions. Tie spooled control lines into existing control lines with 1 /" x 1 /" splices. 4. Screw in (Qty. 4) 3/8" eye bolts to top of 3 -1/2" casing slips/bowl, one in each slip segment. One Vetco rep. to be around wellhead during this operation. 5. P/U 2- 13/16" OD Baker tubing spear assembly and remove cap screw from upper sub. Make sure grapple is free to move and rotate the grapple to the left until it bottoms on releasing ring. Run grapple back up to top sub and bump on shoulder. Tubing spear assembly will come to the rig as follows: a. 2- 13/16" Itco Type Bowen Spear w/ 2 -3/8" PAC box b. 12 ft. pup joint, 120ksi yield (special 2- 13/16" OD w/ 2 -3/8" PAC connection) c. 10 ft. pup joint, 120ksi yield 120ksi yield (special 2- 13/16" OD w/ 2 -3/8" PAC connection) i. NOTE: All 2 -3/8" PAC connections torqued to 3000 ft -lbs. 6. P/U Vetco extended bowl hanger set -up with 2- 13/16" OD PAC pup joint inside. Handling plate should be attached to top of extended bowl sub and the 2- 13/16" safety clamp firmly anchored to inner -string PAC pup joint. 7. M/U extended bowl hanger assembly into string, torque 2 -3/8" PAC connection using 36" torque wrench with one man. Remove any burrs on pup joint OD following M/U. While lowering extended bowl assembly, slowly guide spear into 3 -1/2" tubing stub and begin to 5' the spear into the hole. Lower extended bowl assembly to place handling plate at chest height on the rig floor. 8. Tie onto top of handling plate with air hoist pull a small amount of tension. Remove 2 -7/8" safety clamp and suspend extended bowl outer components with air hoist. • • 9. Lower inner string assembly into 3 -1/2" tubing stub and continue to 5' spear into the tubing while making corresponding marks on workstring. Do not lower spear deeper than 17 ft. into 3 -1/2" casing at any time. 10. M/U X -over assembly (2 -3/8" PAC x HT -38) into BHA and tie into top drive. 11. Attach temporary lifting device to casing slip lifting bolts at wellhead and pull slight tension. 12. Engage spear in 3 -1/2" casing by rotating work -string one complete turn to the left with 36" pipe wrench at wellhead. P/U slowly to bite spear into tubing ID. NOTE: Clear ALL personnel from wellhead area. P/U in scheduled increments as follows: a. P/U to 100k and hold for 15 minutes. b. Increase P/U weight to 150k and hold for 15 minutes. c. Increase P/U weight to 170k and hold for 30 minutes. d. Increase P/U weight until tubing begins upward movement (record this value for proper 7" casing spacer length) and hold for 30 minutes. i. Weight indicator should read 180 -185k (including blocks /TD) immediately prior to upward 3 -1/2" tubing movement. NOTE: Do not exceed 200k on weight indicator at any time. Have a Marathon supervisor remotely observing upward movement at wellhead. ii. Once tubing starts upward movement, increase tension simultaneously on the slip pulling device to pull 3-1/2" casing slips/bowl. Pay special attention to control lines during this operation and protect properly. e. Position top of 3 -1/2" tubing stub 9" above the wellhead and hold this position for 60 minutes. NOTE: Do not exceed 200k on weight indicator at any time. 13. Split 3 -1/2" casing slips only after spear has supported full tubing tension for 30 minutes. Remove slips/bowl quickly and have no more than 2 Vetco personnel at wellhead during this operation. Place 2 boards under hanger to assist in supporting the weight. Never place hands below slips, watch wellhead for pinch points. Make sure slip segments are secure and do not fall downhole. 14. Inspect 3 -1/2" tubing stub for damage and dress if necessary. Slowly lower extended bowl assembly w/ air hoist onto tubing stub. Mark tubing stub prior to lowering assembly to indicate final position of the new slip pack -off system. Mark on tubing stub should be even with bottom of slip pack -off sub when assembly is properly positioned and fully engaged. 15. Drive slips into the tubing stub OD by torqing the slip setting nuts with an open ended wrench. Secure wrench to field rep. with tether type device. Use view windows to make sure slips are firmly engaged on 3 -1/2" tubing stub OD. • • 16. R/U on side control chamber and test pack -off to 10k psi. Hold test for 10 minutes. 17. Route Excape jumper control lines into protective slots machined in the slip pack - off sub OD. Band/tape control lines in place prior to lowering tubing into the well. 18. Slowly lower 3 -1/2" tubing into well while guiding extended bowl assembly into the wellhead. Have 1 Expro rep. on hand to supervise control lines at all times. 19. Continue to lower 3 -1/2" tubing until extended bowl lands out in wellhead. Watch for a sharp drop -off on the weight indicator at surface to ensure that slip pack -off sub has taken entire weight of tubing string. 20. Tie into 3 -1/2" casing bushing control line port and re -test pack -off to 10k psi for 10 minutes. 21. Bump down on spear (1000-2000 lbs.) and rotate 2 -3 turns to the right for release. POOH w/ spear assembly and lay down workstring. 22. Run Excape control lines and lower seal test port line through wellhead packoff. Install bonnet and test same. 23. N/U and test 3- 1/16" 10M tree. 24. RDMO Glacier #1 Drilling Rig. I • / • II B, 8.00 TEST PORT // �_ mom_ I -- I_ : �,� 20.81 1 ■1 1■1 I : I- • . � I i�i 1 O , �:: . , . 806 li I r ' ; . i I � ,% 1'z ^ ■ 26.50 1.1 I = I f ; i III i .11 0; 15.50 — , ■ 5. { 2:3 1% § 0 89.00" � A te g II ti I 13 INTEGRAL SI L CONNECBON AND R AL L ANDING BASE 1 INTEGR LANDING BASE i ., e J .1 20 CASING d'. L 13 3/8 CASING il 1 i H`11 i ii 1 1 I ■ g S 7" OD 8RD LTC j I I —r 08 8RD PIN i 1 �� W ' I I it 3 1/2. OD 848 -- 40 ACCESS WINDOW 4 FOR SUP SETTING NUT OF $ ;5J Ile,' i1 ._ Iii : il�i t _ _ .. I / N 5/8 CASING 8 60 EXTERNAL VIEW SUP I UP HANGER 401/004114, 3 1/2 TUBING *l III, OPENINGS IN SLIP HANGER FOR CONTROL LINES FLUTES FOR '3 i' ' FLOW BY 111 11411181 110 BOTTOM VIEW OF SLIP HANGER PROPRIETARY NOTICE vetcog ray The information contoined hereon is the confidential property of vetcogray and Its affillotes. It Is to be used only BEAVER CREEK #19 for the benefit of vetcogray, and shall not be reproduced or used for MB -196B MULTI —BOWL SYSTEM WITH EXCAPE SYSTEM any other Purpose Without Written Con sent of vetcogray. 20" X 13 -3/8" X 9 -5/8" X 3 -1 /2" 10000 PSI Con DRAAN BY: DATE: E. BORAK 25 Nov 08 ARRANGED FOR DOWN HOLE SUSPENSION OF 3-1/2" TUBING RENEAED BO DAIS: WNG APPROVED 60 DATE : CUSTOMER MARATHON ° uM BER SP -6853 A EV. % REFERENCE ALL mxwvON ARE APPROXIMATE I sHEETi or 2 Permit #. 208 -1230 BC -19 API #: 50- 133 - 20579 -00 -00 Pad 3 Prop. Des: A- 028083 1,196' FNL, 1,657' FWL, KB elevation: 182' (21' AGL) MARATHON wBS #: Sec. 34, T7N, R10W, S.M. Lat Long: , • X . L : 317,469.12 (NAD 27) Conductor Y: 2,433,994.89 (NAD 27) 20" K - 55 133 ppf Spud: 9/14/2008 Top Bottom TD: 10/01/2008 MD 0' 106' Rig Released: ■ till TVD 0' 106' PA #: IA Surface Casing R 4 13 -3/8" J -55 & L -80 68 ppf BTC �v: ''+f4 Top Bottom ', MD 0' 2,510' TVD 0' 2,509' • 16" Hole Cmt wl 869 sks (384 bbls) of 12.0 1 ppg, Type 1 cmt . Top of 3 - 1/2" Tubing Cement:" 113 sks (50 bbls) cmt to surface (est.) @ 6,170' k ° Intermediate Casing i 4 9 -5/8" L -80 40 ppf Butt f, Top Bottom t': , MD 0' 7,447' L. dl': TVD 0' 7,057' +, 12 -1/4" Hole Cmt wl 345 sks (204 bbls) of tot ti! Class G Lead @10.5 ppg &w1160sks 1' (34 bbls) of Class G Tail @ 15.8 ppg. t., *: q ' t Production Tubing 3-1/2" L -80 9.3 ppf EUE ' Top Bottom i MD 0' 9,052' TVD 0' 8,662' : 8 -112" Hole Cmt wl 807 sks (168 bbls) Excape System Details s. Class G @ 15.8 ppg, 100% returns. Flappers MD (RKB): Module 7 = 7,604' Excape System Details Module 6 = 7,738' 1 ' ► - 7 Excape modules placed Module 5 = 7,935' D f - contol line fires modules 5 -7 Module 4 = 8,208' -11 - control line fires Modules 1 -4 Module 3 = 8,495' ? Module 2 = 8,575' D i f Beluga Perfs MD (RKB): Module 1 = NA fil f Module 7 = 7,576'- 7,586' (Beluga) y, a Module 6 = 7,710'- 7,720' (Beluga) ii L 1), Module 5 = 7,900'- 7,910' (Beluga) Module 4 = 8,173'- 8,183' (Beluga) Module 3 = 8,458'- 8,468' (Beluga) ), Module 2 = 8,540'- 8,550' (Beluga) a ii Module 1 = 8,667'- 8,677' (Beluga) fli TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Well Name & Number: Beaver Creek 19 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): (TVD): Angle /Perfs: Angle @ KOP and Depth: Dated Completed: Completion Fluid: Prepared By: Nancy Henry Last Revison Date: 10/10/2008 Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, January 08, 2009 12:47 PM To: 'Tank, Will' Cc: Berga, Pete Subject: RE: Beaver Creek 19 - Repair Sundry Thanks Will. This answers my questions. Tom Maunder, PE AOGCC From: Tank, Will [mailto:wjtank @marathonoil.com] Sent: Thursday, January 08, 2009 12:30 PM To: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: Beaver Creek 19 - Repair Sundry Tom, 1. The well was never perforated. The primary cement lob was completed, and the 3 1/2" was set in the slips, cut off at surface and the tree put in place. It was the amount of tension in setting the slips that has us where we are today. The EXCAPE modules can only be activated by specific hydraulic pressure values through the control lines tied to each module. 2. Concerning the communication question, we have a bond log on the well that shows very good bond throughout the production hole and a top of cement at approximately 6,474' MD. The 9 5/8" intermediate casing shoe is at 7,447' MD, so we have 1,000' of cement above the 9 5/8" shoe, between the 3 1/2" and 9 5/8" casings. The string that we are spearing with is actually round stock, with only one of the pieces not being completely solid. This was necessary to get enough pull strength in a 2 13/16" OD pipe that will fit down inside the 3 1/2" casing. All the drill pipe we looked at, that had a substantial ID for circulating. reduced the pipe strength too much. The well is also full of kill weight brine, With the well completely cemented and the shoe track still full of cement, along with kill weight fluid, we don't believe there is any way the well could communicate via the gas bearing zones. Marathon feels adding a bridge plug into the 3 1/2 ", prior to any perforating or fracturing causes a bigger risk in retrieving it so the well can be stimulated, than any risk of the well flowing right now. Hopefully this explains our reasoning for the plan as it is currently proposed. Please let me know if you need clarification or are concerned with our plans. Thanks, Will From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, January 08, 2009 2:02 PM To: Tank, Will Subject: RE: Beaver Creek 19 - Repair Sundry Will, 1/8/2009 Page 2 of 2 Thanks for the ecopies. I am looking at the hard copy and have a couple of questions. 1. I know the well is not perforated. Is there any risk of setting okthe Excape modules without applying pressure to the control lines? 2. To mitigate the communication risk does the spear incorporate a packoff or has setting some sort of IBP or other plug in the 3 -1/2" been considered to provide containment should communication with the productive zones occur? I look forward to your reply. Tom Maunder, PE AOGCC From: Tank, Will [mailto:wjtank @marathonoil.com] Sent: Thursday, January 08, 2009 10:03 AM To: Maunder, Thomas E (DOA) Subject: Beaver Creek 19 - Repair Sundry Tom, As per our conversation. Here is the electronic version of the Sundry sent to the AOGCC. Have a look and let me know what questions you have on this. Thanks. Will Tank 1/8/2009 IP SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 Craig Rang FAX (907) 276 -7542 Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611-1949 Re: Beaver Creek Field, Beluga Gas Pool, Beaver Creek #19 Sundry Number: 308 -365 Dear Mr. Rang: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, 1 Daniel T. Seamount, Jr. Chair DATED this z- of October, 2008 Encl. • Marathon OiI Company Alaska Asset Team Marathon P.O. Box 1949 MARATHON OiI Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 October 10, 2008 Mr. Tom Maunder Alaska OiI & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 RECEIVED OCT 1 3 2008 Reference: 10 -403 Application for Sundry Approvals Field: Beaver Creek Gas Field Alaska Oil & Gas Cons. Commission Well: Beaver Creek #19 Anchorage Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for BC -19 well. Marathon requests permission to perforate and fracture stimulate the seven Excape modules that were in the wellbore during drilling activities. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Sundry Notice cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS CLR f • STATE OF ALASKA �+ / • t) , ' ALASKA OIL AND GAS CONSERVATION COMMISSION R1✓�� APPLICATION FOR SUNDRY APPROVALS �� 20AAC25.280 OCT 1 3 2008 �` 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown❑ Perforate Waiver Other ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulates LL ' r ESit fle,,,,.. 8• Commission Change approved program ❑ Pull Tubing ❑ Perforate New Pool 0 ` Re -enter SuspendeefWSN ge 2. Operator Name: an Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development 0 Exploratory ❑ 208 - 1230 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50 - 133 - 20579 00 - 00' 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? ;jY�ess ❑ No 0 Beaver Creek #19 9. Property Designation: G� • 10. KB Elevation (ft): 11. Field / Pool(s): Beaver Creek Field / - FED A - 028083 . 179' (21' AGL) ' Beluga Pstntallso C74S 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 9,068' 8,678' - 9,016' 8,626' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 85' 20" 106' 106' 3,060 psi 1,500 psi Surface 2,489' 13 -3/8" 2,510' 2,509' 3,450 psi 1,950 psi 5,020 psi 2,260 psi Intermediate 7,426' 9 -5/8" 7,447' 7,057' 5,750 psi 3,090 psi Production 9,031' 3 -1/2" 9,052' 8,662' 10,160 psi 10,540 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA 3 - 1/2" L - 80 9,052' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development Ei " Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: November 1 , 2008 Gil ❑ Gas si - Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer 6 - Signature Phone (907) 283 -1372 Date October 10, 2008 1 ...ee—i 4 4 1- 7,„___, T , di COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: \ lc ? �� t y �0 � �a ` ■ e �� c�� ) Q �� °11 `� �a APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 1 6) t p 1 r n. S BB L OCT 1 200 Form 10 -403 Revised 06/2006 I ` [N, L Submit in Duplicate • • MARATNOM BC -19 Fracture Stimulation Desription Summary of Proposal Beaver Creek 19 is a new well drilled to 9067' MD, 9 5/8" intermediate string set at 7447' MD and cased as a 3.5" Monobore Excape completion string back to the surface. There are seven (7) Excape perforating modules selectively positioned across the gas bearing sands. Each module will complete a different production interval with ten feet of perforations followed by individual fracture stimulations in each interval. Typically, Module 1 perforating will be actuated the day before fracture stimulations are scheduled. The Module 1 interval will then be stimulated the following morning followed by perforating Module 2 with its stimulation and continuing this sequence until all Modules have been perforated / stimulated. All Module perforations/fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the wellbore of module debris and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its' own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Beaver Creek Field, typical vent times are less than 48 hours. However, due to the uncertainty of exactly how long BC -19 will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 6 MMCF of methane gas. This volume is minimized due to the utilization of the Excape completion process which enables all intervals of interest to be fracture treated on the same day and unloaded together at one time, instead of multiple frac days with multiple flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please contact me at your earliest convenience. , Per#t BC-19 . 208 -1230 i API #: 50- 133 - 20579 -00 -00 Pad 3 1 Prop. Des: A- 028083 - 1,196' FNL, 1,657' FWL, KB elevation: 182' (21' AGL) WBS #: g Sec. 34, T7N, R10W, S.M. MARATHON Latitude: 1 - Longitude: 1 1 , L X: 317,469.12 (NAD 27) Conductor Y: 2,433,994.89 (NAD 27) 20" K - 55 133 ppf Spud: 9/14/2008 Top Bottom TD: 10/01/2008 MD 0' 106' Riq Released: TVD 0' 106' I PA #: Surface Casing al / oi.' . 13 -3/8" J -55 & L -80 68 ppf BTC Top Bottom MD 0' 2,510' TVD 0' 2,509' 16" Hole Cmt w/ 869 sks (384 bbls) of 12.0 q4 } • ppg, Type 1 cmt . Top of 3 - 1/2" Tubing Cement t p 113 sks (50 bbls) cmt to surface (est.) @ 6,170' I I Intermediate Casing , !g 9 -5/8" L -80 40 ppf Butt .'e Top Bottom 1 MD 0' 7,447' TVD 0' 7,057' 12 -1/4" Hole Cmt w/ 345 sks (204 bbls) of Class G Lead @ 10.5 ppg & w /160 sks 31 = 1 ; (34 bbls) of Class G Tail @ 15.8 ppg. Production Tubing 3 -1/2" L -80 9.3 ppf EUE Top Bottom . MD 0' 9,052' TVD 0' 8,662' 8 -1/2" Hole Cmt w/ 807 sks (168 bbls) Excape System Details Class G @ 15.8 ppg, 100% returns. Flappers MD (RKB): Module 7 = 7,604' Excape System Details Module 6 = 7,738' - 7 Excape modules placed Module 5 = 7,935' �7 -' ,= contol line fires modules 5 -7 Module 4 = 8,208' 'D1 f _ - control line fires Modules 1 -4 Module 3 = 8,495' Module 2 = 8,575' - If Perfs MD (RKB): Module 1 = NA -Di 7 = 7,576'- 7,586' (Beluga) Module 6 = 7,710'- 7,720' (Beluga) A I -14 Module 5 = 7,900'- 7,910' (Beluga) Module 4 = 8,173' - 8,183' (Beluga) Module 3 = 8,458' - 8,468' (Beluga) Module 2 = 8,540' - 8,550' (Beluga) ell Module 1 = 8,667' - 8,677' (Beluga) TD PBTD 9,068' MD 9,016' MD 8,678' TVD 8,626' TVD Well Name & Number: Beaver Creek 19 Lease: Beaver Creek Field, A- 028083 Municipality: Kenai Peninsula Borough State: Alaska I Country:I USA Perforations (MD): (TVD): Angle /Perfs: Angle @ KOP and Depth: Dated Completed: Completion Fluid: Prepared By: Nancy Henry Last Revison Date: 10/10/2008 • • MEMORANDUM State of Alaska 2 Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 9/13/2008 P.I. Supervisor SUBJECT: Diverter Function Test Inlet Drilling 1 Marathon Oil Co. BC -19 FROM: Lou Grimaldi 208 -1230 Petroleum Inspector Beaver Creek Operator Rep.: John Nicholson Op. phone: 394 -1306 Contractor Rep.: George Brewster Rig phone: MISC. INSPECTIONS: ACCUMULATOR SYSTEM: F /P/FP Location Gen.: P Well Sign: P Systems Pressure: 3000 psig P Housekeeping: P (Gen.) Drlg. Rig: P Pressure After Closure: 1875 psig P Reserve Pit: NA Flare Pit NA 200 psi Recharge Time: :34 min:sec P Full Recharge Time: 2:50 min:see P DIVERTER SYSTEM INSPECTION: Nitrogen Bottles: 4 X 1925 P Diverter Size: 21 1/4 in. Vent Line(s) Size: 16 in. Vent Line(s) Length: 80 ft. MUD SYSTEM INSPECTION: Light Alarm Line(s) Bifurcated: No Trip Tank: P P Line(s) Down Wind: Yes Mud Pits: P P Line(s) Anchored: P Flow Molitor. P P Turns Targeted / Long Radius: NA Divert Valve(s) Full Opening: P GAS DETECTORS: Light Alarm Valve(s) Auto & Simultaneous: P Methane P P Annular Closed Time: :48 Sec Hydrogen Sulfide: P P Knife Valve Open Time: :22 Sec f 1 INorthl 1 ri= t1 Wind f 0 Test's Details Diverter system laid out nicely, 16" Tine well secured and straight Knife valve fully opened before annular halfway closed. Gas detectors were being calibrated during test and seemed to work fine_ All PVT sensors were checked as well as Flow -Show. When I arrived the annular was dosed with approximately 6" of water on top of element, observed for thirty minutes "OK ". Functioned diverter which operated correctly and in good time. Total Test Time: 4 hrs Number of failures: None Attachments: cc: Diverter Test (for inspectors) BFL 2 -1-08 DIV GD -1 09 -13-08 LG.xls • • '''' s IL 11 ilk Allc I' A (1...) Lc u If if SARAH PALIN, GOVERNOR ALASKA OIL .AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVAflON COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street, Ste 800 Anchorage, AK 99503 Re: Beaver Creek Field, Beluga Gas Pool, BC 19 Marathon Oil Company Permit No: 208 -123 Surface Location: 1196' FNL, 1657' FWL, SEC. 34, T7N, R1OW, S.M. Bottomhole Location: 2733' FNL, 1119' FWL, SEC. 34, T7N, R1OW, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. 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, e) , L------' Daniel T. Seamount, Jr. Chair DATED this) Z day of August, 2008 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. • • Worldwide Drilling North America )1 Marathon P.O. Box 3128 MARATH Company Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 -499 -6737 July 30, 2008 R1 1 Daniel T. Seamount, Jr. r?° � ..�. Commissioner State of Alaska Alaska Oil & C F Cons, Alaska Oil & Gas Conservation Commission Ann ; age 333 West 7 Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Kenai Gas Field Well: Beaver Creek 19 Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to drill a well in the Beluga Pool in the Beaver Creek Field. No completion is desired in other pools. For the directional data we utilize the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual wellpaths from the NAD 83 data and present both in our directional survey attachment for the 10 -401. We also provide the same data electronically, so that the AOGCC has this for data input into their database. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sincerely, A dji , A 2- tvmk Willard J. Tank Advanced Senior Drilling Engineer Enclosures STATE OF ALASKA 'it/riiriC RECEIVL , ' AL,. OIL AND GAS CONSERVATION COM SION A °'' ' 1 PERMIT TO DRILL -0 20 AAC 25.005 la. Type of Work: 1b. Current Well Class: Exploratory ❑ Development Oil 111 1c. Specify if well is propose ' - ",-, Drill 0 Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas is Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone • Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 BC 19 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 9,068 TVD: 8,679 Beaver Creek Field 4a. Location of Well (Governmental Section): 7. Property Designation: Beluga Pool Surface: 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R10W, S.M. A- 028083 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 2,733' FNL, 1,119' FWL, Sec. 34, T7N, R10W, S.M. August 25, 2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 2,733' FNL, 1,119' FWL, Sec. 34, T7N, R10W, S.M. 2,560 Property: 3,000 ft 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 317,469.107 y - 2,433,994.889 Zone - 4 (Height above GL): (21' AGL) 179 feet Within Pool: 1,571 ft BC 13 16. Deviated wells: Kickoff depth: 3,000 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 31.25 degrees Downhole: 4,242 Surface: 2,348 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD _ TVD MD TVD (including stage data) Driven 20" 133 K -55 PE 99' 0' 0' 120' 120' 16" 13 3/8" 68 K -55 BTC 2,479' 0' 0' 2,500' 2,500' 756 sacks 12 1/4" 9 5/8" 40 L -80 BTC 7,427' 0' 0' 7,448' 7,059' 346 sacks lead, 404 sacks tail 8 1/2" 3 1/2" 9.3 L -80 EUE 9,047' 0' 0' 9,068' 8,679' 806 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee 0 BOP Sketch is Drilling Program El Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat 0 Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer ' Signature Phone 713 - 296 -3273 Date July 30, 2008 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: _ F/ ,f 50 /j OS790000 Date: . l ,•Gg requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed me hane, gas hydrates, or gas contained in shales: Wr Other: _ Samples req'd: Yes No Mud log req'd: Yes No' Z Jv pS ‘ Z - c:,� H measures: Yes❑ No I/ Directional svy req'd: YesZ No❑ P r 1 APPROVED BY THE COMMISSION I 1 DATE: , COMMISSIONER Form 10 -401 Revised 12/2005 Submit in Duplicate Beaver Creek 19 Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Beaver Creek Field BC 19 Originator: Will Tank 44 July 30, 2008 Date Reviewed by: Pete Berge Date Brian Roy Date 7/31/2008 Page 1 of 18 Beaver Creek 19 Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 9 Y p 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 6 4.1 General Well Data 6 4.2 Working Interest Owners Information 6 4.3 Geologic Program Summary 6 4.4 Summary of Potential Drilling Hazards 7 4.5 Formation Evaluation Summary 7 4.6 Drilling Program Summary 8 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 10 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 12 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 17 4.19 Bit Summary 17 4.20 Hydraulics Summary 18 4.21 Formation Integrity Test Procedure 18 7/31/2008 Page 2 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska Attachments Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead Equipment — Description /Drawings Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Keeping Analysis — Mooring /DP n/a Stress Check Casing Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Rig Elevations X Well Location Diagram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe Specifications 7/31/2008 Page 3 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °39'28.140 "N Longitude - 151°01'10.661'W (NAD 83) From the Kenai airport, go 0.4 mile South on North Willow Street. Turn East on Airport Way, go 0.5 miles. Tum East on Kenai Ground Spur Highway and go less than 0.1 miles. Tum Easton Marathon Road and go 10 miles. In the Beaver Creek Field stay to the left, running past the field office. Go 1.4 miles to Beaver Creek Pad 3. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907 - 283 -1314 907 - 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800 -MOC -CERT CERT Crisis Center Houston 713- 296 -4230 713 - 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907 - 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907 - 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907 - 262 -4455 State Police 907- 262 -4453 Coast Guard 800 - 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 7/31/2008 Page 4 of 18 Beaver Creek 19 • • Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713 - 296 -3273 713 - 203 -8398 713 - 499 -6737 832 - 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 907 - 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 - 499 -6707 281 - 246 -4686 Scott Szalkowski Geologist 713 - 296 -3390 713 - 301 -9834 Moksh Dani Reservoir Engineer 713 - 296 -3140 832 - 692 -4700 Craig Rang Completion Engineer 907 - 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907 - 394 -0953 907 - 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance 713 - 296 -3254 979 - 830 -7927 979 - 836 -9390 713 - 499 -6748 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907- 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BLM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BLM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BLM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. Logging Requirement for a 24 hour notice to the BLM prior to logging. Production Casing & Requirement for a 24 hour notice to the BLM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. Comments 7/31/2008 Page 5 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name BC 19 Lease / License Surface Location 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R1OW, S.M. WBS Code DD.08.18263.CAP.DRL Slot/Pad Beaver Creek Pad 3 Field Beaver Creek Field Spud Date 8/25/08 (est.) KB (above MSL) 179' County/Province Kenai Peninsula API No. GL (above MSL) 158' State / Country Alaska Permit No. Perm. Datum KB Total MD 9,068' Well Class Development Water Depth N/A Total TVD 8,679' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907 - 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease/Block Lines 1,196' FNL, 1,657' FWL, Sec. 34, T7N, R1OW, S.M. Latitude 60° 39' 28.140" N Longitude 151° 01' 10.611" W UTM North (Y) 2,433,747.150' UTM East (x) 1,457,496.740' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling (Not a Prod Target) 5,047 4,850 8.1 Sandstone Gas/Water Beluga LB 15 (Primary Target) 7,354 6,965 8.5 Sandstone Gas Beluga LB 16 (Primary Target) 7,408 7,019 3.3 — 9.4 Sandstone Gas Beluga LB 23 (Primary Target) 7,987 7,598 3.3 — 9.4 Sandstone Gas 7/31/2008 Page 6 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska Horizontal Depth (KB) Displacement (ft) MD TVD +N / -S +E / -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Beluga LB 16 7,408 7,019 2,733' FNL, 1,119' FWL, Sec. 34, T7N, R10W, S.M. -1,537 -538 Circle 250' radius Beluga LB 23 7,987 7,598 2,733' FNL, 1,119' FWL, Sec. 34, T7N, R10W, S.M. -1,537 -538 Circle 250' radius TD 9,068 8,679 2,733' FNL, 1,119' FWL, Sec. 34, T7N, R10W, S.M. -1,537 -538 Circle 250' radius Comments: 1. There are no zones from surface to TD that have water with a TDS of 10,000 ppm or greater. 2. No zones above the Sterling (5,047' MD, 4,850' TVD) contain oil or gas. 3. The proposed top of cement is over 500' above the Sterling, the highest known hydrocarbon bearing zone. 4.4 Summary of Potential Drillinct Hazards Depth KB Hazard Event (ND) Discussion Precautions Lost Circulation in Sterling and Intermediate Control losses by using sufficiently sized LCM, Take care not to surge the hole during Beluga sands &Production tripping operations. g Hole including fibrous and calcium carbonate types. PP 9 P Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. Gas sands will be encountered from +1- 5,047' MD (4,850' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The Flo -Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface None None None 0' — 2,500' MD Intermediate None None Basic with GCA, shale density, temperature in and 2,500' — 7,448' MD out, sample collection (10' samples). Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 7,448' — 9,068' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 7/31/2008 Page 7 of 18 Beaver Creek 19 • • Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Drive Pipe: N/A Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. RU crane and hammer. Drive 20" conductor to +/ -120 ft. RKB. RD crane and hammer. 2. Move in and rig up rotary drilling rig. 9 P rY 9 3. Install starting head 20" SLC x 21 1/4 ", 2M flanged. 4. Nipple up 21 1/4 ", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. Best Practices: 1 Comments: Surface: Drill 16" hole to +/- 2,500' set 13 -3/8" casing. 1. Drill a 16" hole to 2,500' MD (2,500' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab -in sub and centralizer on 5" drill pipe. TIH with inner string and latch into stab -in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 3/8" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowi wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2,500 psi. 6. Set wear bushing. 7. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Comments: Intermediate: Drill 12 -1/4" hole to +/- 7,448' set 9 5/8" casing. 1. PU 12 1/4" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 14 ppg. 3. Drill 12 1/4" directional hole to 7,448' MD (7,059' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH and lay down BHA. Pull wear bushing. 5. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,500 psi. 6. Run and cement 9 5/8" casing. Land hanger in multibowl wellhead. 7. Back out landing joint. Change out 9 5/8" casing rams with variable pipe rams. Run test plug and test rams to 250/2,500 psi. 8. Set wear bushing. Test casing to 1,750 psi. Best Practices: 1 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 2 Put lubricant in prior to drill out of intermediate shoe. 3 -5% Lubetex is normally required, possibly more depending on solids in the mud. Maintain a minimum of 3% throughout the hole section. 7/31/2008 Page 8 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. Production: Drill 8 1/2" hole to +/- 9,068' set 3 -1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to an FIT of 12 ppg. Estimated Leak Off EMW is 15 ppg. 3. Drill 8 1/2" hole to an anticipated TD of 9,068' MD (8,679' TVD) as per the directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU Precision. Run open hole logs as per plan. RD logging company. 6. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 7. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 8. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 10. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 11. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 3 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Completion: Completion will be done without a rig. This will include activating the EXCAPE perforating modules via hydraulic pressure on the control lines and fracture stimulation of targeted zones. Wellbore clean out will likely include slickline and possibly nitrogen jetting with coiled tubing. Best Practices: 1 Comments: 7/31/2008 Page 9 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole a .. o y Size Weight ID Drift 0. D. Torque Size m ' , U o. H (i Top Bottom (Ibs /ft) _ (in) (in) Grade Type (in) (ft-Ibs) (in) 13 3/8 0 2,500 68 12.415 12.259 K -55 BTC 14.375 N/A * 16 3,450 1,950 1,300 9 5/8 0 7,448 40 8.835 8.679 L -80 BTC 10.625 N/A * 12 1/4 5,750 3,090 979 31/2 0 9,068 9.3 2.992 2.867 L -80 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: i. ALL CASING WILL BE NEW CASING. ii. Overpull for the 3 1/2" string must be limited to 89,500 Ibs. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum y C Casing Depth Mud Wt Frac. Form Surface _ p o B Size Weight TVD When Set Grad Press Pressure 10 a (in) (Ib /ft) Grade (ft) (lb/gal) (lb/gal) (lb/gal) (psi) m ~ 13 3/8 68 K -55 2,500 9.4 14.0 8.5 1,570 2.11 1.60 3.82 9 5/8 40 L -80 7,059 9.5 15.0 9.4 2,348 1.20 1.22 2.68 31/2 9.3 L -80 8,679 9.5 15.0 9.4 2,348 1.15 2.46 1.30 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 2,500 2,272 1,570 30/70 9 5/8 7,059 3,988 2,348 30/70 3 1/2 8,679 7,112 2,348 30/70 * MAWP = Maximum allowable working pressure ** MASP = Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 30% Mud Column — 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 7/31/2008 Page 10 of 18 Beaver Creek 19 1 • Marathon Oil Company Drilling Program Alaska Surface casing: 13 3/8" (2.500' MD, 2,500' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (14.0 ppg x .052 x 2,500') - (0.1 psi /ft x 2,500') MASPfrac = 1,820 psi - 250 psi MASPfrac = 1,570 psi. MASPbh = BHP open hole td — Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbhp = (9.4 ppg x .052 x 7,059') — (0.3 x 9.5 ppg x .052 x 7,059') — (0.7 x 0.1 psi /ft x 7,059') MASPbhp = 3,450 psi — 1,046 psi — 494 psi MASPbhp = 1,910 psi MASP = MASPfrac = 1,570 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,450) — (9.4 — 8.3) x .052 x 2,500' MAWP = 2,415 psi —143 psi = 2,272 psi Intermediate casing: 9 5/8" (7,448' MD. 7.059' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 7,059') - (0.1 psi /ft x 7,059') MASPfrac = 5,506 psi - 706 psi MASPfrac = 4,800 psi. MASPbhp = BHPopen hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (9.4 ppg x .052 x 8,679') — (0.3 x 9.5 ppg x .052 x 8,679') — (0.7 x 0.1 psi /ft x 8,679') MASPbh = 4,242 psi — 1,286 psi — 608 psi MASPbhp = 2,348 psi MASP = MASPbhp = 2,348 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (9.5 — 9.4) x .052 x 7,059' MAWP = 4,025 psi — 37 psi = 3,988 psi Production casing: 3 1/2" (9,068' MD. 8.679' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 8,679') - (0.1 psi /ft x 8,679') MASPfrac = 6,770 psi - 868 psi MASPfrac = 5,902 psi. MASPbh = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (9.4 ppg x .052 x 8,679') — (0.3 x 9.5 ppg x .052 x 8,679') — (0.7 x 0.1 psi /ft x 8,679') MASPbh = 4,242 psi — 1,286 psi — 608 psi MASPbh = 2,348 psi MASP = MASPbhp = 2,348 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (9.5 — 9.5) x .052 x 8,679' MAWP = 7,112 psi — 0 psi = 7,112 psi 7/31/2008 Page 11 of 18 Beaver Creek 19 • • Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) (1) 13 -5/8" 5M annular Surface 13 3/8 2,272 1,570 1,500 9.4 (1) 13 -5/8" 5M pipe ram 250/2,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Intermediate 9 5/8 3,988 2,348 1,750 9.5 250/2,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Production 31/2 7,112 2,348 2,000 9.5 250/2,500 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 7/31/2008 Page 12 of 18 Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska 4.11.2. Pressure Testing I The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PRI 13 5/8" x 9 5/8" Fluted Mandrel 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSLI,PR1 Slip Adapter Flange 13 -5/8" 5M X 3 -1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E / -W VS No. Description (ft) (ft) (" /100') ( "/100') ( "/100') (deg) (deg) (ft) (ft) (ft) 1 Tie On 0 0 0 0 0 0 199.286 0 0 0 2 KOP 3,000.00 3,000.00 0 0 0 0 199.286 0 0 0 3 Build up Section 3.00 0 3.00 199.286 4 End of Build 4,041.68 3,990.79 3.00 0 3.00 31.250 199.286 - 261.55 -91.52 277.10 5 Hold Section 0 0 0 31.250 199.286 6 End of Hold 5,845.40 5,532.81 0 0 0 31.250 199.286 - 1,144.77 - 400.58 1,212.83 7 Drop Section -2.00 0 2.00 199.286 8 End of Drop 7,407.91 7,019.00 -2.00 0 2.00 0 199.286 - 1,537.10 - 537.86 1,628.49 9 TD 9,067.91 8,679.00 0 0 0 0 199.286 - 1,537.10 - 537.86 1,628.49 1 7/31/2008 Page 13 of 18 • • Beaver Creek 19 Marathon Oil Company Drilling Program Alaska 0 0 1000 2000 133/8 S 3000 w J in - p w 4000 a - + 0) - L 0 - U 5000 Z -1000 2 6000 o BC 1s TD ~ - C 95/8" fn ____:: _ BC 19 LB -16 _ BC 19 LB -16 7000 - BC 19 LB -23- -- - - -- -- 8000 BC 19 LB -23 _31/2" BC 19 TD_ _ - 1 1 1 1 1 iiiiiiiii 1 1 1 1 1 1 i 1 1 i . _ . 11 1 1 1111 1 1 1 I I I i -3000 -2000 -1000 0 1000 2000 3000 4000 5000 -1000 0 Vertical Section at 199.29° (2500 ft/in) West( -) /East( +) (600 ft/in) Comments: Vertical section calculated from a reference azimuth of 199.29° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) BC 9 88.81 836 BC 3 93.74 1,346 BC 10 99.75 1,853 BC 16 /BC 16RD 100.82 Surface BC 5 142.60 3,469 BC 6 163.52 3,362 BC 11 190.43 Surface BC 13 194.80 3,505 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Remarks Tool Surface 0 — 2,500' X Intermediate 2,500' — 7,448' X Production 7,448' — 9,068' X Best Practices: 7/31/2008 Page 14 of 18 • Beaver Creek 19 • Marathon Oil Company Drilling Program Alaska 1 Comments: 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description ' Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, Polypac 0 2,500 8.6 — 9.4 Gel / Gelex Spud Mud Supreme UL 2,500 7,059 9.0 — 9.5 6% Flo -Pro NT w/ Safecarb Flo Vis, PolyPac Supreme UL, KCI, SafeCarb, Lo Torq, Barite, Caustic, Conqor 404, SafeScav NA 7,059 8,679 9.0 — 9.5 6% Flo-Pro NT w/ Safecarb Flo -Vis, PolyPac Supreme UL, KCI, SafeCarb, Lo Torq, Barite, Caustic, Conqor 404, SafeScav NA Best Practices: 1 Because the production zone will be fracture stimulated, the mud system from the intermediate section will be re -used for the production hole after cleanup through the on -site centrifuge. Comments: 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density Vis 1 min PV YP Fluid Loss Solids (ft) (ft) (lb/gal) (sec/qt) (Ib. /100ft (cP) (lb/100 ft (cc) pH ( %) 0 2,500 8.6 — 9.4 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7 2,500 7,059 9.0 — 9.5 30,000 + 8 - 12 7 — 9 +/- 9.5 +/- 5 7,059 8,679 9.0 — 9.5 30,000 + 10 - 14 < 6 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3 1/2" production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. 7/31/2008 Page 15 of 18 • Beaver Creek 19 Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o a d Z g 1 N 91, 0 C U N fn 1 2 Y m � U C C c L N N N 3 7 N Interval U U U n� Comments 0 — 9,068' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) Shaker 2 — Swaco Mongoose PT Desander N/A Desilter 1 — Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 7/31/2008 Page 16 of 18 Beaver Creek 19 Marathon Oil Company Drilling Program Alaska 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft (ft (Ppg) ( %) (hrs) 20 120 120 Driven N/A 13 3/8 2,500 2,500 16 0 0 1,114 1,898 12.0 75 8 9 5/8 7,448 7,059 12 1/4 4,500 4,383 923 1,327 12.5 / 15.8 40 8 31/2 9,068 8,679 81/2 6,900 6,514 727 943 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) _ (ft (ft) (gal/sx) Type (cc) ( %) 8 hr 24 hr 13 3/8 Tail Type I Cement 12.0 756 2.51 1,898 0 11.28 Fresh 812 0 196 818 Lead Class "G" 12.5 346 2.47 854 4,500 13.78 Fresh 559 0 92 645 9 5/8 Tail Class "G" 15.8 404 1.17 473 6,448 4.97 Fresh 24 0 226 2,632 3 1/2 Tail Class "G" 15.8 806 1.17 943 6,900 4.97 Fresh 24 0 226 2,632 Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: 1. Volume calculations assume 40' intemal cement shoe track for the stab -in surface shoe and 80' of internal cement for the remaining shoe tracks. See cement prognosis for details and spacer specifications. 2. Centralizers for the casing strings will include at least 1 per joint on the bottom 3 joints as per BLM regulations. 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 0 2,500 16 Christensen MX -1 115 27.5 - 65 Motor 2,500 7,448 12 1/4 Christensen HCM 506Z M323 Up to 52 Motor 7,448 9,068 8 1/2 Christensen HCM 506Z M323 Up to 29 Motor Best Practices: 1 Comments: See bit prognosis for additional information. It is anticipated that we will encounter a conglomerate section from 6,784' — 7,359' MD. In work prior to 2007 our PDC bits would not drill this entire section, but recent drilling at Sterling Unit and BC 16RD indicates that it is possible to drill the entire section with PDC bits. If a second bit is necessary for the 12 ' /4 " hole an MX -18DX (IADC 447) should be used to finish this section. Back up bits for the 8' /2" hole section will consist of an MXL -18DX (IADC 447) bit. 7/31/2008 Page 17 of 18 • Beaver Creek 19 Marathon Oil Company Drilling Program Alaska 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhole Nozzle AP at Depth -MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 2,500' 16 650+ 1,400 69 9.3 2 — 18 s Actual Data KBU 24 -7X (@ 1,636' MD) 1 -16 2,500' — 7,448' 12 1/4 600 1,577 118 9.2 9.64 6 — 13's MI Virtual Hydraulics (@ 7,448' MD) 7,448' — 9,068' 8 1/2 450 1,743 233 9.5 9.91 5 — 15's MI Virtual Hydraulics (@ 9,068' MD) Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. Annular velocities in the 16 ", 12 % ", and 8 %2" holes were calculated using 5" drillpipe. 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to an FIT instead of Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and moming reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. FIT tests are to be conducted the same as described by the LOT test above, except in step 4, where the pumping would stop at the specified pressure to achieve an FIT required. Note that leakoff is always possible, prior to the specified FIT, due to formation variations. Best Practices: 1 Comments: 7/31/2008 Page 18 of 18 • • Marathon Oil Well BC 19 Diverter Flow line 21 1/4" 2M Diverter . 16" Automatic Knife Valve NI Diverter Spool 1 1 of 1 1 16" Diverter Line • 0 Marathon Oil Well BC 19 BOP Stack Flow Nipple I Flow Line 13 5/8" 5M Annular Preventer 13 5/8" 5M Double . Pipe Ram Ram Preventer 2 1/16" 5M . Blind Ram . Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves _� Operated Valve -I■w j7 ` __ - - X J - -- . ® - Choke WM— X _, — 13 5/8" 5M Cross 3 Hydraulically Operated Valve 135/8" 5Mx135/8 "5M Drilling Spool Bottom of mud cross must be 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange . • Marathon Oil Well BC 19 Choke Manifold Bleed off Line to To Gas Buster To Blooey Line Shakers n n T. MEM MEM u 1 1 1 , � ' 1 1 - O „ g - - O , Og '- O , Op ' . ( II II 1 I Hi Vir MM. ■ Ea ■ I` X j I 0 001 4 Ilo 3” 5M Valves VP 1 2 9/16" 10M Swaco ' ' 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke Gauge Block Choke Hose to HCR e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor 'Ai innrius ree Porn deryr i.i 101411' • 1n "21 isn Acuuniui j 'Ii M•nrtoPd FIRPROior Mad .der Valve r.hsc.k INilrtr yn Only U1dt;(l Ryrlry 1{1 41Plys f( 1j artx dank Revealing apeman' Ai II Valle 1. IM INeeWae to ram powders Annular Pressure Vewe a WM tIMIN Manually (taupe- 0. 000 Pe r' -KR" Hydra Regoietoi •! maenrrelly a(tluelat7le team 0.1600 psi normally around 1000 ! Annular regulator i l' i operated m m ., lii!ii7 Actuulaks a provides dependeni +. nnmaxy f I Pressure (S regulation of the j.. _ ® txrWell ! Mended Regulator a nnular cperatio ®!u II Regulator mmM 0 Valve- Normally in low 0 BIXMP pressure pteNUr• (A) Pout"' normally For opyreaons over around :1000 1500par, move to high pros ure(oght) position U - i • Mandold Pressure Gauge 0 6000 normally 1500psi 1 1 1 C • 't*` -' Wipe tSo1Mbn Valve i ... a High Pressure Prasaure aa► app \ \ • I Screen 0000 0 now Prawn t3aI11CIP' "� 0000 Aulomalt is, r. , O1LCO • punynwlen *Sy leech 3000 psi and sails when fM priest,. Drops to ii 11110 mj..•, Filliffifil IAB I I t Main Air I t .IIMn -- '�'� hauPr.i �" i •;•rxryr•. 7� I nplosron Roof Electric � Wks ` Air Lubricator. irxz: umulator Rehf Valve 1, 1 [ "Pop ON' -set at 3200PSI ` , I -• •+ Use drops 10. set • • Reset if 1 at 6 drops e Check w 70G mm weedy yl _. _ M • Belt Guard- Triplex Galley t Isolation Air Pressure Switch Drain Valve Electric 1 Valve for Bypass- Normally closed. Motor Triplex Air Pum{„ but open with pressures 60 Ratio � pe Triplex Pump- Switch- Pump- a above 3000 psi Checu oil level Kepp;r, Normally if Suction Strainer rr u monthy Fill auto open. For Air Pumps with 10w 40 position close for Suction Valve For Turn oft pressure Air operated when exceeding Pumps- reamians servicing 11 3000 PSI open close during f serviceing U Suction strainer for Tiplex pump . clean every 30 days • Surface Use Plan for Beaver Creek 19 Surface Location: 1196' FNL, 1657' FWL, Sec. 34, T4N, R10W, S.M. a. Existing Roads Existing roads which will be used for access to BC 19 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the topographic map. 1. Marathon owns the existing road and will maintain the road in a proper manner before, during, and after drilling operations. Plans for maintaining the road would include grating and adding road materials to maintain road grade. This is an unpaved road. 2. Marathon will not use any roads under Forest Service jurisdiction. b. New or Reconstructed Access Roads No new roads will be required to access BC 19. c. Location of Existing Wells Well BC 19 will be drilled on Beaver Creek pad 3. A signed surveyor as -built drawing is enclosed that shows existing wells and the location of BC 19. d. Location of Existing and /or Proposed Production Facilities The locations of existing production facilities in the Beaver Creek pad 3 are shown on the signed surveyors as -built drawing. A flowline will be installed from the BC 19 wellhead to the existing production facilities. e. Location and Types of Water Supply A water supply well exists on the pad that BC 19 will be drilled from. This is shown on the as -built drawing. Marathon has a Temporary Use Water Permit (A2007 -89) from the Alaska Department of Natural Resources. The well is approved for potable use a Class C water system by the Alaska Department of Environmental Conservation. f. Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. No new dikes or ditches will be constructed. No additional road material will be brought on the pad. There are no topsoil or material stockpiles on the pad. g. Methods of Handling Waste; 1. Mud and Cuttings Cuttings will be dewatered on location. The drilling waste and fluids will be hauled via vacuum truck to Pad 41 -18 of the Kenai Gas Field for disposal into a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). Marathon obtains a temporary waste storage approval from the ADEC for temporary onsite storage. 2. Solid Waste All household and approved non - hazardous solid waste will be hauled to the Kenai Peninsula Borough Soldotna Landfill. Oily materials (rags and /or plastic liner) are • • disposed by a third party. 3. Completion Fluids Clear fluids will be injected into approved disposal wells Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 34- 31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). 4. Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. 5. Sewage There is no discharge onsite and all waste water will be hauled to the Kenai sanitation facility by a qualified 3rd party. h. Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately five mobile trailer house type structures will be utilized for this purpose. No camps, airstrips, or staging areas will be constructed. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. A qualified 3 party will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. i. Well Site Layout Please see the attached plats identifying the pad and the location of drilling rig over BC 19, with the approximately planned orientation. The Glacier rig utilizes a closed loop system, no earthen pits are utilized. All fluids are contained in steel tanks as part of the rig package. j. Plans for Surface Reclamation BC 19 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of BC 19 and the other existing wells on the pad, and will be restored to the satisfaction of the the surface owners and the U.S. Bureau of Land Management. k. Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. A copy of the surface use plan has been provided to the surface owner, as required. I. Other Information 1. Marathon's Glacier drilling rig has multiple containment features including a timber -diked plastic liner laid on top of the drilling pad. Each rig component sitting on top of the plastic liner has it's own containment system. 2. All rig operations are preceded by a pre -job safety meeting. Marathon acknowledges that all personnel, contract or Marathon employee, can stop the job if there is a safety or environmental concern. • Operator Certification Field: Beaver Creek Well: Beaver Creek, BC 19 Surface Location: 1,196' FNL, 1,657' FWL, Section 34, Township 7N, Range 10W, SM AK I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that I, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 30 day of July , 20 08 Name Willard J. Tank 11 ' % 'N. Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Beroa (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail wjtank(a�marathonoil.com (optional) • • 28 27 33 34 . N 2435216.8424 SECTION LINE NOT TO SCALE E 315828.9694 ==.11I SECTION 34 T7N R1OW SM, AK NORTH Lc • BC9 ELEV: 163.58' Illi 1. ■ I WETLANDS J. \ Z Z.0 I. J W J.._ EDGE OF GRAVEL PAD W TO NTA MENT BERM J Q \ T OF PE BEER U CONCRETE PAD CO ;.0'X7.' O METAL BUILDING I-- 15.5' X 12.5' I- BC 10 B.C.U. NO. 10 ELEV: 181.71' Z ! ANTENNA ® ' 3UILO r O N:2i390 S B)30 • W 1111.'' , E 3, 355.8 B.C.U. NO. 19 ELEV. te3.3' Z B.C.U. NO. 11 ELLOU HSE 8OIA.BIL 8' DIA WELL CELLAR ONLY . J 12. %12.' O N O Z E! °.58 ELEV: , ms BEAVER CREEK UNIT PAD 3 AS - BUILT 0 CONDUIT GROUND N:2433994.889 F- V B.C.U. NO. B E:317469.107 OA SILO N ` N ELEV: 22.vaz322O 8 LAT:60 °39'30.271 "N S' 1657' FWL S E 0V 060 71:243004.02 E 312379.72 LONG: 151 °01'02.727 'W , I.∎ LINE HEATER ELEV. 18047 O ' PIPE GUARS 4'7 METER Box ED NAD27 ASP Zone 4 L B.C.U. 710.6 gip ACCESS ROAD TO PAD t \ CONCRETE PAD WITH ,4,501.. SILO ELEV: 160.5' �G 1 7 CONTROL L PANEL N' 2°r'PB''°3 NAVD88 E'. 312312.E3 • RADIO ANTENNA AND ELEV: 188.4 b °r / CONTROL PANEL °O B.C.U. 710.3 1657' FW L SITE EMERGENCY SHUT WELL HOUSE N: 243395e85 1196' FNL . DOWN SWITCH Q CONCRETE PAD k ELEV: 180 a 250'X25. e , �7Y f\\\JJJ 0 r R PRO D UCED \ O B .C.U. NO. 18 No.BT�AK ` / Y FLUIDS ® E L •` No.8 25.5' ' 23.0'X25 E: 31238833 / BUILDING EE'/ +te a .0' B.C.U. NO. 13 / No.9 TPAK VOA. SILO 9.2'X25.5' �� # o.9LINE ON: 243389+.85 ' O• ./ HEATER E:3,Ti , ^ S `]/ r 20.0' %7.1' ELEV:1 2.T 100'X32.0' . ....44 ------- OR • Tynx PRODUCED / '; ULF K I D S ` -_ LINED . CONTAINMENT AREA / RETENTION BASIN BUILDING BUILDING 10.0'X28.4' o.e TFAK CONTROL. POINT ' 21.0' / TOP OP PERIMETER I ELEV: 183 rte• \ 76:1,2, CONTAIMENT BERM ,�, BUILDING / / \ / BUILDING .0'X28 .4' / ( \ 10.0'%28.4' \ \ VAULT EDGE OF GRAVEL PAD \ • BASIS OF GEODETIC CONTROL WERE DETERMINED FROM %� `` O F A 1 A DIRECT TIE TO U.S.C. &G.S. STATION AUDRY HAVING A .�,SE q xi I i S , , G ENER A TOR NAD27 PUBLISHED VALUE OF ,r BUILDING .' LATITUDE: 60 °30'50.559 "N oN . -9 LONGITUDE: 151 °16'37.445 'W. FOUNDATION • ' 71 49 T I J . .. /\ * . ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 NAD 27 / i� N= 2,382,045.42 E= 269,866.75 BASIS OF VERTICAL CONTROL IS NGS BM D81 LOCATED IN 0 0 M. SCOTT McLANE �o = THE KENAI SPUR HIGHWAY RIGHT OF WAY DOWNTOWN ,/ `nr 4928 -5 •' e - KENAI HAVING AN ELEVATION OF 84.11 FEET NAVD 88 ai 'PF • • • . 6/11/08 . • •' ACCORDING TO NGS PUBLISHED DATA. SCALE 1 pRDFES510NPA- .P `• 0 100 200 ' 11 I,Vt‘ % FEET I 1 PROJECT REVISION: - M MARATHON FOR INFORMATIONAL PURPOSES ONLY DATE: 6 -11-08 OIL COMPANY BCU 19 WELL ON BCU PAD 3 DRAWN BY: MSM 1/AAAThON • �, IRI T AS -BUILT SURFACE LOCATION DIAGRAM SCALE: 1" =100' NAD27 PROJECT NO. 083042 ENGINEERING / MAPPING / SURVEYING / TESTING BOOK NO. 08-03 Co n.'DLtin9 �LIL P.O. BOX 468 SOLDOTNA, AK. 99669 LOCATION SHEET VOICE: L: SA 83 -4218 FAX: (907)283-3265 S34 T7N R10W SEWARD MERIDIAN, ALASKA 1 1 - � r �� EMAIL SAMCLANE�MCLANECG.COM • • TOPO! map printed on 06/02/08 from "BC-19_AreaMap.tpo" 151°16.000 W 151°13.000' W 151°10 W 151°07.000' W 151°04.000' W WGS84 151°00.000' W .... . 0- / ,—( ,.... , ,) , r. NI z C '..... 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' ' 11 i' 0 ....--A :9%7 x , fr „, __ ,....„,,,.. _._,..._ __,,..„ .___ _ _ ____ , f) ,__. 4 - ) 7 .,..•I * : .7C>.......1 cL., P .../. i... : ■.4 . - —) o r l'•i ; II. . ■ )-\-\ MaRcreV .1tti:1-.T*P10' R 42006 National ,Geographic, , - \ xa 5 4 .1 6 -.: ,. 1 i 6, . 151°16.000' W 151°13.000' W 151°10.000' W 151°07.000' W 151°04.000' W WGS84 151°00.000' W TN MN NATIONAL 0.0 0.5 1.0 1.5 2.0 2.5 3.0 miles 19° GEOGRAPHIC liw,i,v,i,,kr,i,o,wilio,q,1,,i I I I I 0 1 2 3 4 km 06/02/08 • 0 TOPO! map printed on 06/02/08 from "BC- 19_Pad- 3.tpo" 151 °07.000' W 151 °05.000' W 151 °03.000' W 151 °01.000' W 150 0 59.000' W WGS84 150 °56.000' W z ' z o T - o 2.3 o ° i 24 :'0 21 � 24 o o 24 t 19 Akula v o - Ermine hake VD Lake . - _ _ ..;v.; ..; cir z z ° o Z , 25 25 1 _ 30 29 28 27 2 25 ° 0 O - K E O o - -rt- O IBearer''reelNo 1P v o o � I NE114NW1 , 4,Sect34,PN,1111W,SMI a ti) ... - ` � .," I Pad No. 31 d P ; . _ :'S ` I i 0 4 I == 40d Wells ,t 5 v Z Tank 3 36 31 `I 3 At 4'' Z ` 32 33 y / 36 o �� 0 - ° o ff [Be (.'reel .Unit P- ` o CA r ( m rn > -_ - / , .. g _ ,YID Oil Nell (� , ��' "'s`�i.... 0 No 21 I Pad 1 '� ` . 1 6 Pit 4 3 v z s NA T I 0 N A L p z a o r . 8._-.4' ( _ PGO 7 J .. i!p'0 c o, 0 0 „ 12 1?" . 7 •Y 8 9 , 10 11 1 ?- — ---i \ ri.5 �.� 1 G / ,r - fk- _ Z O ! • • 4ji Z ' ” Y 1 ` Wpodpeeker - C O , ( .., { ° o . / , 1 - 0 i 13 18 17.. 16 1 ` c, 14 1 .. 7 ' °1 19fe Lake "Map created with TOPO R ©2006 National Geographic : - a ,J 1 �_ % / 151 °07.000' W 151 °05.000' W 151 °03.000' W 151 °01.000' W 150 °59.000' W WGS84 150 °56.000' W TN MN NATIONAL 0.0 0.5 1.0 1.5 2.0 miles 19° GEOGRAPHIC Hhy,i,i,,wii,i, y, stir i 0.0 0.5 1.0 1.5 2.0 2.5 3.0 km 06/02/08 • Beaver Creek Unit Well Path Basemap BG- ' �1a BC -9 13 ., r, e-Br i 11). BC-14 18 BC-1t BC-1A HC-17 BC-x BC-7 1 mile • Z. • _ 1 _ t I /.' 1i. . I 1. fr.' i X ._. _ ai [ X3 1103H 'QAHI � : i'"44 • i r I • I • IP A ! i i w ¢ gn L • • • U x g 12 g) "1,— 0 a I t ISM r r ki • on El II « • •I V x n & n x • ,, .: •. f in le Igo T —_ 1 L J I I I IMAMS )q• I J + `�— , I I r �� I I 1j I' "I^ L II w 1 COWS Mg II `.% II J I —11I M RATHON Oil Company BAKER MIMI Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #19 HUGHES Field: Beaver Creek Unit (NAD83) Well: BC -19 MARATHON Facility: Pad #3 Wellbore: BC -19 INTEQ Plot reference wellpath is BC -19 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 17- Jul -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad #3 1455858.593 2434967.850 60 °39'39.909 "N 151°01'43.861"W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #19 - 1194.98 1657.16 1457496.740 2433747.150 60 °39'28.140 "N 151°01'10.611"W Comment Glacier #1 (RKB) to Mud line (Facility: Pad #3) 179ft Mean Sea Level to Mud line (Facility: Pad #3) Oft Glacier #1 (RKB) to Mean Sea Level 179ft Well Profile Data Design Comment MD (ft) Inc ( Az ( ND (ft) Local N (ft) Local E (ft) DLS ( °/100ft) VS (ft) RKB 179' 0.00 0.000 199.286 0.00 0.00 0.00 0.00 0.00 KOP 3000.00 0.000 199.286 3000.00 0.00 0.00 0.00 0.00 EOB 4041.68 31.250 199.286 3990.79 - 261.55 -91.52 3.00 277.10 Begin Angle Drop 5845.40 31.250 199.286 5532.81 - 1144.77 - 400.58 0.00 1212.83 LB -16 (EOD) 7407.91 0.000 199.286 7019.00 - 1537.10 - 537.86 2.00 1628.49 LB -23 7986.91 0.000 199.286 7598.00 - 1537.10 - 537.86 0.00 1628.49 TD - 3 1/2" Csg Pt 9067.91 0.000 199.286 8679.00 - 1537.10 - 537.86 0.00 1628.49 . Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Gnd North (USft) Latitude Longitude BC -19 Lower Beluga 16 (NAD83) 26-Jun-08 7019.00 - 1537.10 - 487.86 1456985.13 2432217.90 60 °39'13.002 "N 151°01'20.398'W BC -19 Lower Beluga 23 (NAD83) 26-Jun-08 7598.00 - 1537.10 -487.86 1456985.13 2432217.90 60 °39'13.002 "N 151°01'20.398'W BC -19 TD (NAD83) 26- Jun-08 8679.00 - 1537.10 - 487.86 1456985.13 2432217.90 60 0 39'13.002 "N 151°01'20.398'W Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) ND (ft) ND (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 16 "Open Hole 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00 0.00 BC -19 13 3/8" Casing Surface 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00 0.00 BC -19 12 1/4" Open Hole 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 - 537.86 BC -19 9.625in Casing Intermediate 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 - 537.86 BC -19 8 1/2" Open Hole 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 BC -19 3 1/2" Casing Production 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 BC -19 IvRATHON Oil Compai BA Ku Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #19 N11GNE5 Field: Beaver Creek Unit (NAD83) Well: BC -19 I NTEQ MARATHON Facility: Pad #3 Wellbore: BC -19 Plot reference wellpath is BC -19 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 17- Jul -08 A -625 — lillll� �� Easting (ft) Snle 1 inch ° 250 ft -750 - 825 -500 -375 -250 -125 0 125 0 — r , KB 179' 1 1 1 1 1 1 Slot #19 — 0 625 — • — -125 1250 — -250 1875 — — -375 2500 — L 13 3/8" Casing Surface 0.60° 0 KOP — -500 3125 — 7.20° " 13.80° " 3.00 ° /100ft 19.80° 0 — -625 3750 — 25.80° " L EOB 9, — -750 4375 — o > ? 5000 — -875 ch 1-- 31.25° Begin Angle Drop 5825 — 26.96° 22.56° 18.56° " — -1125 6250 — 2.00 ° /100ft 14.56° 10.16° 6.16° 0 — -1250 6875 — 2.16° 0 9 5/8 Casing Intermediate . . LB -16 (EOD) BC -19 Lower Beluga 16 BC -19 Lower Beluga 16 (NAD83) 26-Jun-08 (NAD83) BC -19 Lower luga 23 NAD83) 6un-08 26- Jun -08 BC-19 Be TD (NA 83) 26- Ju -0 — _1375 7500 — LB -23 BC -19 Lower Beluga 23 (NAD83) 26 -Jun -08 — -1500 8125 — 9 5/8 Casing Intermediate C 3 1/2 Casing Production 3 1/2 Casing Production • TD - 3 1/2" Csg Pt — 45 8750 — BC -19 TD (NAD83) 26 -Jun -08 -1750 9375 — 1 1 1 1 1 1 - 625 0 625 1250 1875 2500 Vertical Section (ft) 1250" Azimuth 199.29° with reference 0.00 N, 0.00 E Planned Wellpath Geographic Report Report Generated 17 -Jul -08 at 14:11:43 Projection System NAD83 / TM Alaska State Plane, one 4 5004 , U eet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999938 Field Beaver Creek Unit (NAD83) Horizontal Reference Point Slot Facility Pad #3 Vertical Reference Point Glacier #1 (RKB) Slot slot #19 MD Reference Point Glacier #1 (RKB) Well BC -19 Field Vertical Reference Mean Sea Level Wellbore BC -19 Glacier #1 (RKB) to Facility Vertical Datum 179.00 ft Wellpath BC -19 Version #3 Glacier #1 (RKB) to Mean Sea Level 179.00 ft Wellbore Last Revised 05/14/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from (none) Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 199.29° Local North Local East Grid East Grid North Latitude Longitude [t4] [ft] [USft] [USN] Slot Location - 1194.98 1657.16 1457496.74 2433747.15 60 °3928.140 "N 151 ° 01'10.611 "W Facility Reference Pt 1455858.59 2434967.85 60 ° 39'39.909 "N 151 °0143.861 "W Field Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151 ° 0143.861 "W NAD 83 coordinates are converted to NAD 27 usin _ Cor • scon 6.0.1 US Arm Cor •s of En _ ineers TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Tooliace Build Rate Turn Rate Vert Sect Comments [ft] ['] [1 [ft] [It] [ft] [ft] [ft] (ft] [ft] [tt] ['] ['/100ft] [ ° /100ft] (ft] • 0.00 0.00 199.29 0.00 - 179.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611 "W 0.00 0.00 0.00 0.00 0.00 100.00 0.00 199.29 100.00 -79.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °01'10.611 "W 0.00 0.00 0.00 0.00 0.00 200.00 0.00 199.29 200.00 21.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611 "W 0.00 0.00 0.00 0.00 0.00 300.00 0.00 199.29 300.00 121.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °01'10.611 "W 0.00 0.00 0.00 0.00 0.00 400.00 0.00 199.29 400.00 221.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 500.00 0.00 199.29 500.00 321.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 600.00 0.00 199.29 600.00 421.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 700.00 0.00 199.29 700.00 521.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 °N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 800.00 0.00 199.29 800.00 621.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °0110.611'W 0.00 0.00 0.00 0.00 0.00 900.00 0.00 199.29 900.00 721.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140°N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 1000.00 0.00 199.29 1000.00 821.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 1100.00 0.00 199.29 1100.00 921.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 °N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 1200.00 0.00 199.29 1200.00 1021.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 1300.00 0.00 199.29 1300.00 1121.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 1400.00 0.00 199.29 1400.00 1221.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 1500.00 0.00 199.29 1500.00 1321.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 1600.00 0.00 199.29 1600.00 1421.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 1700.00 1 0.00 199.29 1700.00 1521.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 _ 1800.00 0.00 199.29 1800.00 1621.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 1900.00 0.00 199.29 1900.00 1721.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2000.00 0.00 199.29 2000.00 1821.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611V 0.00 0.00 0.00 0.00 0.00 2100.00 0.00 199.29 2100.00 1921.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °01'10.611"W 0.00 0.00 0.00 0.00 0.00 2200.00 0.00 199.29 2200.00 2021.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151°0110.611"W 0.00 0.00 0.00 0.00 0.00 2300.00 0.00 199.29 2300.00 2121.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2400.00 0.00 199.29 2400.00 2221.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2500.00 0.00 199.29 2500.00 2321.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2600.00 0.00 199.29 2600.00 2421.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2700.00 0.00 199.29 2700.00 2521.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"VV 0.00 0.00 0.00 0.00 0.00 2800.00 0.00 199.29 2800.00 2621.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °3928.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 2900.00 0.00 199.29 2900.00 2721.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 0.00 0.00 0.00 0.00 II 3000.00 0.00 199.29 3000.00 2821.00 0.00 0.00 1457496.74 2433747.15 317475.58 2433986.26 60 °39'28.140 "N 151 °0110.611"W 0.00 - 160.71 0.00 0.00 0.00 3100.00 3.00 199.29 3099.95 2920.95 -2.47 -0.86 1457495.84 2433744.69 317474.68 2433983.80 60 °39'28.115 "N 151 °01'10.628'W 3.00 0.00 3.00 0.00 2.62 3200.00 6.00 199.29 3199.63 3020.63 -9.88 -3.46 1457493.13 2433737.33 317471.97 2433976.44 60 °39'28.042 "N 151 °01'10.680"W 3.00 0.00 3.00 0.00 10.46 3300.00 9.00 199.29 3298.77 3119.77 -22.19 -7.77 1457488.63 2433725.08 317467.47 2433964.19 60 °3927.921 "N 151 °0110.767°W 3.00 0.00 3.00 0.00 23.51 3400.00 12.00 199.29 3397.08 3218.08 -39.39 -13.78 1457482.35 2433707.98 317461.19 2433947.09 60 °39'27.752 "N 151 °0110.888"W 3.00 0.00 3.00 0.00 41.74 3500.00 15.00 199.29 3494.31 3315.31 -61.42 -21.49 1457474.30 2433686.07 317453.14 2433925.18 60 °39'27.535 °N 151 °01'11.042"W 3.00 0.00 3.00 0.00 65.08 3600.00 18.00 199.29 3590.18 3411.18 -88.23 -30.87 1457464.50 2433659.42 317443.34 2433898.53 60 ° 39'27.271 "N 151 °01'11.231"W 3.00 0.00 3.00 0.00 93.48 3700.00 21.00 199.29 3684.43 3505.43 - 119.73 -41.90 1457452.99 2433628.09 317431.83 2433867.20 60 °39'26.960 "N 151 °01'11.452"W 3.00 0.00 3.00 0.00 126.85 3800.00 24.00 199.29 3776.81 3597.81 - 155.85 -54.53 1 1457439.80 2433592.17 317418.64 2433831.28 60 °39'26.605 "N 151 °01'11.705°W 3.00 0.00 3.00 0.00 165.12 3900.00 27.00 199.29 3867.06 3688.06 - 196.48 -68.75 1457424.95 2433551.77 317403.79 2433790.88 60 °39'26.205 "N 151 °01'11.991"W 3.00 0.00 3.00 0.00 208.16 4000.00 30.00 199.29 3954.93 3775.93 - 241.51 -84.51 1457408.50 2433506.99 317387.34 2433746.10 60 °39'25.761 "N 151 °0112.307 "W 3.00 0.00 3.00 0.00 255.87 4041.68 31.25 199.29 3990.79 3811.79 - 261.55 -91.52 1457401.18 2433487.07 317380.02 2433726.18 60 °39'25.564 "N 151 °0112.447 "W 3.00 0.00 3.00 0.00 277.10 4100.00 31.25 199.29 4040.65 3861.65 - 290.11 - 101.52 1457390.74 2433458.67 317369.58 2433697.78 60 °39'25.283 "N 151 °01'12.648"W 0.00 0.00 0.00 0.00 307.36 4200.00 31.25 199.29 4126.14 3947.14 -339.08 - 118.65 1457372.85 2433409.97 317351.69 2433649.08 60 °39'24.800 "N 151 °0112.992'W 0.00 0.00 0.00 0.00 359.24 4300.00 31.25 199.29 4211.64 4032.64 -388.04 - 135.78 1457354.96 2433361.28 317333.81 2433600.39 60 °3924.318 "N 151 ° 01'13.335"W 0.00 0.00 0.00 0.00 411.12 4400.00 31.25 199.29 4297.13 4118.13 -437.01 - 152.92 1457337.07 2433312.59 317315.92 2433551.70 60 °39'23.836 "N 151 °0113.679'W 0.00 0.00 0.00 0.00 462.99 4500.00 31.25 199.29 4382.62 4203.62 -485.98 - 170.05 1457319.18 2433263.90 317298.03 2433503.01 60 °39'23.354 "N 151 °0114.023 "W 0.00 0.00 0.00 0.00 514.87 4600.00 31.25 199.29 4468.11 4289.11 -534.94 - 187.19 1457301.29 2433215.21 317280.14 2433454.32 60 °39'22.871 "N 151 °01'14.367 "W 0.00 0.00 0.00 0.00 566.75 4700.00 31.25 199.29 4553.60 4374.60 -583.91 - 204.32 1457283.40 2433166.52 317262.25 2433405.63 60 °39'22.389 "N 151 °0114.710 "W 0.00 0.00 0.00 0.00 618.63 4800.00 31.25 199.29 4639.09 4460.09 - 632.88 - 221.46 1457265.51 2433117.82 317244.36 2433356.92 60 °3921.907 "N 151 °0115.054 "W 0.00 0.00 0.00 0.00 670.50 4900.00 31.25 199.29 4724.58 4545.58 - 681.84 - 238.59 1457247.62 2433069.13 317226.47 2433308.23 60 °39'21.425 "N 151 °0115.398 "W 0.00 0.00 0.00 0.00 722.38 5000.00 31.25 199.29 4810.07 4631.07 - 730.81 - 255.72 1457229.73 2433020.44 317208.58 2433259.54 60 °39'20.943 "N 151 °01'15.742"W 0.00 0.00 0.00 0.00 774.26 5100.00 31.25 199.29 4895.56 4716.56 - 779.78 - 272.86 ' 1457211.84 2432971.75 317190.69 2433210.85 60 °3920.460 "N 151 °01'16.085"W 0.00 0.00 0.00 0.00 826.14 5200.00 31.25 199.29 4981.05 4802.05 - 828.74 - 289.99 1457193.95 2432923.06 317172.81 2433162.16 60 ° 39'19.978 "N 151 ° 01 . 16.429"W 0.00 0.00 0.00 0.00 878.01 5300.00 31.25 199.29 5066.55 4887.55 - 877.71 - 307.13 1457176.06 2432874.37 317154.92 2433113.47 60 °39'19.496 "N 151 ° 0116.773"W 0.00 0.00 0.00 0.00 929.89 5400.00 31.25 199.29 5152.04 4973.04 - 926.68 - 324.26 1457158.16 2432825.67 317137.02 2433064.77 60 ° 39'19.014 "N 151 ° 01'17.117"W 0.00 0.00 0.00 0.00 981.77 5500.00 31.25 199.29 5237.53 5058.53 - 975.64 - 341.40 1457140.27 2432776.98 317119.13 2433016.08 60 °39'18.532 "N 151 °01'17.460"W 0.00 0.00 0.00 0.00 1033.65 5600.00 31.25 199.29 5323.02 5144.02 - 1024.61 - 358.53 1457122.38 2432728.29 317101.24 2432967.39 60 °39'18.049 "N 151 °0117.804"W 0.00 0.00 0.00 0.00 1085.53 Page 1 of 2 Planned Wellpath Geo • raphic Report Report Generated 17 -Jul -08 at 14:11:4 Projection System NAD83 TM Alaska tate Plane, Zone 4 (5004), U eet Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999938 Field Beaver Creek Unit (NAD83) Horizontal Reference Point Slot acility Pad #3 Vertical Reference Point Glacier #1 (RKB) +lot slot #19 MD Reference Point Glacier #1 (RKB) ell BC -19 Field Vertical Reference Mean Sea Level e8bore BC -19 Glacier #1 (RKB) to Facility Vertical Datum 179.00 ft ellpath BC -19 Version #3 Glacier #1 (RKB) to Mean Sea Level 179.00 ft ellbore Last Revised 05/14/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft . idetrack from (none) Section Origin X E 0.00 ft ser Jonethoh Section Origin Y N 0.00 ft alculation method Minimum curvature Section Azimuth 199.29° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USN] Slot Location - 1194.98 1657.16 1457496.74 2433747.15 60 °3928.140 "N 151 °01'10.611 "W acility Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151 °01'43.861 "W field Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151 °01'43861 "W NAD 83 coordinates are converted to NAD 27 usin. Corpscon 6.0.1 US Arm Corps of En .ineers TVD R em • MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sec[ Comments [ft] [°] [ °] [ft] [ft) [ft] [ft] [ft] [ft] [ft] [ft] [°] ['mom] (*mom [8] 5700.00 31.25 199.29 5408.51 5229.51 - 1073.58 - 375.66 1457104.49 2432679.60 317083.35 2432918.70 60 °3917.567 "N 151 °01'18.148"W 0.00 0.00 0.00 0.00 1137.40 5800.00 31.25 199.29 5494.00 5315.00 - 1122.54 - 392.80 1457086.60 2432630.91 317065.46 2432870.01 60 °39'17.085 "N 151 °0118.492"W 0.00 0.00 0.00 0.00 1189.28 5845.40 31.25 199.29 5532.81 5353.81 - 1144.77 - 400.58 1457078.48 2432608.80 317057.34 2432847.90 60 °3916.866 "N 151 °01'18.648'W 0.00 180.00 0.00 0.00 1212.83 5900.00 30.16 19929 5579.76 5400.76 - 1171.09 - 409.78 1457068.87 2432582.64 317047.73 2432821.74 60 °3916.607 "N 151 °01'18.832"W 2.00 180.00 -2.00 0.00 1240.71 6000.00 28.16 199.29 5667.08 5488.08 - 1217.07 -425.88 1457052.06 2432536.91 317030.93 2432776.01 60 °39'16.154"N 151 °0119.155 "W 2.00 180.00 -2.00 0.00 1289.43 6100.00 26.16 19929 5756.05 5577.05 - 1260.15 - 440.95 1457036.32 2432494.07 317015.19 2432733.17 60 °39'15.730 "N 151 °0119.457 "W 2.00 180.00 -2.00 0.00 1335.07 6200.00 24.16 19929 5846.56 5667.56 - 1300.28 - 454.99 1457021.66 2432454.17 317000.53 2432693.27 60 °3915.335 "N 151 °01'19.739"W 2.00 180.00 -2.00 0.00 1377.58 6300.00 22.16 199.29 5938.50 5759.50 - 1337.40 - 467.98 1457008.10 2432417.26 316986.97 2432656.36 60 °39'14.969"N 151 °01'20.000"W 2.00 180.00 -2.00 0.00 1416.91 6400.00 20.16 199.29 6031.75 ' 5852.75 - 1371.46 -479.90 1456995.65 2432383.38 316974.52 2432622.48 60 °39'14.633 °N 151 °0120.239"W 2.00 180.00 -2.00 0.00 1453.00 6500.00 18.16 199.29 6126.21 5947.21 - 1402.44 -490.74 1456984.34 2432352.58 316963.21 2432591.68 60 °39'14.328 "N 151 °01'20.456"W 2.00 180.00 -2.00 0.00 1485.82 6600.00 16.16 199.29 6221.75 6042.75 - 1430.28 - 500.48 1456974.16 2432324.89 316953.03 2432563.99 60 °39'14.054 "N 151 °0120.652"W 2.00 180.00 -2.00 0.00 1515.32 6700.00 14.16 199.29 6318.27 6139.27 - 1454.96 - 509.12 1456965.15 2432300.35 316944.02 2432539.45 60 °39'13.811 "N 151 °0120.825"W 2.00 180.00 -2.00 0.00 1541.47 6800.00 12.16 199.29 6415.64 6236.64 - 1476.45 - 516.64 1456957.30 2432278.99 316936.17 2432518.08 60 °3913.600 "N 151 °0120.976"W 2.00 180.00 -2.00 0.00 1564.23 6900.00 10.16 199.29 6513.74 6334.74 - 1494.71 - 523.03 1456950.62 2432260.83 316929.49 2432499.92 60 °39'13.420 "N 151 °01'21.104"W 2.00 180.00 -2.00 0.00 1583.58 7000.00 8.16 199.29 6612.46 6433.46 - 1509.74 -528.28 1456945.13 2432245.89 316924.00 2432484.98 60 °3913.272 "N 151 °0121.209"W 2.00 180.00 -2.00 0.00 1599.50 7100.00 6.16 199.29 6711.68 6532.68 - 1521.50 - 532.40 1456940.84 2432234.19 316919.71 2432473.28 60 °39'13.156 "N 151 °01'21.292"W 2.00 180.00 -2.00 0.00 1611.96 7200.00 4.16 199.29 6811.27 6632.27 ' - 1529.98 - 535.37 1456937.74 2432225.75 316916.61 2432464.84 60 °3913.072 "N 151 °01'21.351'W 2.00 - 180.00 -2.00 0.00 1620.95 7300.00 2.16 199.29 6911.11 6732.11 - 1535.18 - 537.19 1456935.84 2432220.58 316914.71 2432459.67 60 °3913.021 "N 151 °0121.388"W 2.00 180.00 -2.00 0.00 1626.46 7400.00 0.16 199.29 7011.09 6832.09 - 1537.09 - 537.86 1456935.14 2432218.69 316914.01 2432457.78 60 °3913.002 "N 151°01'21.401"W 2.00 - 180.00 -2.00 0.00 1628.48 7407.91 0.00 199.29 7019.00 6840.00 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 2.00 0.00 -2.00 0.00 1628.49 7500.00 0.00 199.29 7111.09 6932.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 7600.00 0.00 199.29 7211.09 7032.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 7700.00 0.00 199.29 7311.09 7132.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 7800.00 0.00 199.29 7411.09 7232.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °01'21.401"W 0.00 0.00 0.00 0.00 1628.49 7900.00 0.00 199.29 7511.09 7332.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °01'21.401"W 0.00 0.00 0.00 0.00 1628.49 7986.91 0.00 199.29 7598.00 7419.00 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °01'21.401"W 0.00 0.00 0.00 0.00 1628.49 8000.00 0.00 199.29 ' 7611.09 7432.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 8100.00 0.00 199.29 7711.09 7532.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401'W 0.00 0.00 0.00 0.00 162849 8200.00 0.00 199.29 7811.09 7632.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 8300.00 0.00 199.29 7911.09 7732.09 - 1537.10 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 162849 8400.00 0.00 199.29 8011.09 7832.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 8500.00 0.00 199.29 8111.09 7932.09 - 1537.10 -537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 1628.49 8600.00 0.00 199.29 8211.09 8032.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °0121.401"W 0.00 0.00 0.00 0.00 162849 8700.00 0.00 199.29 8311.09 8132.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °0121.401"W' 0.00 0.00 0.00 0.00 1628.49 8800.00 0.00 199.29 8411.09 8232.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °3913.002 "N 151 °01'21.401"W 0.00 0.00 0.00 0.00 1628.49 8900.00 0.00 199.29 8511.09 8332.09 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002"N 151 °0121.401'W 0.00 0.00 0.00 0.00 1628.49 9000.00 0.00 199.29 8611.09 8432.09 - 1537.10 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151°01'21.401"W 0.00 0.00 0.00 0.00 1628.49 9067.91 0.00 199.29 8679.00 8500.00 - 1537.10 - 537.86 1456935.14 2432218.68 316914.01 2432457.77 60 °39'13.002 "N 151 °01'21.401"W 0.00 0.00 0.00 0.00 1628.49 . Page 2 of 2 Planned Wellpath Report BA K a i l E BC -19 Version #3 HUGHES MARATHON Page 1 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999938 Report Generated 17- Jul -08 at 10:57:00 Convergence at slot 0.89° West Database /Source file WA_Anchorage/BC-19.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 1194.98 1657.16 1457496.74 2433747.15 60 °3928.140 "N 151°01'10.611"W Facility Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151°01'43.861"W Field Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151°01'43.861"W WELLPATH DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 179.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 179.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 199.29° Planned Wellpath Report BA K E R ' E BC -19 Version #3 HUGHES MARATHON Page 2 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 ELLPATH DATA (96 stations) t = interpolated /extrapolated station • MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [ 11 [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ °/100ft] [ ° /100ft] [ ° /100ft] 0.00 0.000 199.286 0.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 RKB 179' 100.001 0.000 199.286 100.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 200.001 0.000 199.286 200.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 300.001 0.000 199.286 300.00 0.00 ! 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 400.00t 0.000 ` 199.286 400.00 1 0.00 0.00 0.00 1457496.741 2433747.15 0.00 0.00 X "" 0.00 500.001 0.000 199.286 500.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.001 600.001 0.000 199.286 600.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 700.001 0.000 199.286 700.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.001 800.001 0.000 199.286 800.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 : 911 0t ; 0.000 199.286 900.00 0.00 (i7 0.00 1457496.74 2433747.15 0.00 _ 0.00 0.00 1000.001 0.000 199.286 1000.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1100.001; 0.000 199.286 1100.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1200.001 0.000 199.286 1200.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1300.001 0.000 199.286 1300.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 il :.f., 1 ' 1 0000,&": 99. ' 1400.00 ° 0.00 1 11 0.00 , 96.74 2433747.15:;& 0.00 0.00, 0.00 1500.001 0.000 199.286 1500.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1600.001 0.000 199.286 1600.00 0.00 ! 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1700.001 0.000 199.286 1700.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1800.001 0.000 199.286 1800.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 1900,11 Q 1, 1 'x" 1 ; : ° ° ; . `86 1. °.±.,. 1+ .r A 0.1,g' 1.1 :. 0.00 457496 22433. i ' 000 0.00 2000.001 0.000 199.286 2000.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2100.001 0.000 199.286 2100.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2200.001 0.000 199.286 2200.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2300.001 0.000, 199.286 2300.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 x`11 t 1 . '. ±' 1'°;286 a 11 A i 1 .. _:' '' . a 0:�i1 ,' ; 243374 0.00 0.00 ', .0 00 a, 2500.00f 0.000 199.286 2500.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2600.001 0.000 199.286 2600.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2700.001 0.000 199.286 2700.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2800.001 0.000 199.286 2800.00 _ 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 2900.001 1 1 ' .+,° °.286 ° 1 ' 1- i I . } 1 :0.00 s; _m 2_7 0.11e ,., 0 .00 0.00 2433. � � " = = Planned Wellpath Report BA KER ill E BC -19 Version #3 HUGHES MARATHON Page 3 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC - 19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 ELLPATH DATA (96 stations) - = interpolated /extrapolated station 0 MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [°] [ °] [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ °/100ft] [ ° /100ft] [ ° /100ft] 3000.00 0.000 199.286 3000.00 0.00 0.00 0.00 1457496.74 2433747.15 0.00 0.00 0.00 KOP 3100.00t 3.000 199.286 3099.95 2.62 -2.47 -0.86 1457495.84 2433744.69 3.00 3.00 0.00 3200.00t 6.000 199.286 3199.63 10.46 -9.88 -3.46 1457493.13 2433737.33 3.00 3.00 0.00 3300.001 9.000 199.286 3298.77 23.51 -22.19 -7.77 1457488.63 2433725.08 3.00 3.00 0.00 I 2433707.98 3.00 3.00 0.00 ' s n - 3397.08 41.74 � -39.39 -13.78 .; 1457482.35 3500.00t' 15.000 199.286 3494.31 65.08 -61.42 -21.49 1457474.30 2433686.07 3.00 3.00 0.00 _ 3600.001* 18.000 199.286 3590.18 93.48 -88.23 -30.87 1457464.50 2433659.42 3.00 3.00 0.00 3700.00 21.000 199.286 3684.43 126.85 - 119.73 -41.90 1457452.99 2433628.09 3.00 3.00 0.00 3800.00 24.000 199.286 3776.81 165.12 - 155.85 -54.53 1457439.80 2433592.17 3.00 3.00 0.00 .. 1 199.286 3867 20816 " -196.48 -6:, 1457424.95 <w, "_;2433551.77 3.00 3.04 0.00 4000.00t 30.000 199.286 3954.93 255.87 - 241.51 -84.51 1457408.50 2433506.99 3.00 3.00 0.00 4041.68 31.250 199.286 3990.79 277.10 - 261.55 -91.52 1457401.18 2433487.07 3.00 3.00 0.00 E0B 4100.00t 31.250 199.286 4040.65 307.36 -290.11 - 101.52 1457390.74 2433458.67 0.00 0.00 0.00 4200.00t 31.250 199.286 4126.14 359.24 - 339.08 - 118.65 1457372.85 2433409.97 0.00 0.00 0.00 l l .* '' 1.250 199.28. ::: ..,,s, t'4211.64 44 ' Y n :.04 a ' 7 '57354. 2433361.28 - n'` t'l � x'' �: -: ' � � 0.00 0� 4' 4400.00t 31.250 199.286 4297.13 462.99 - 437.01 - 152.92 1457337.07 2433312.59 0.00 0.00 0.00 4500.00t 31.250 199.286 4382.62 514.87 ! - 485.98 -170.05 1457319.18 2433263.90 0.00 0.00 0.00 4600.001* 31.250 199.286 4468.11 566.75 - 534.94 - 187.19 1457301.29 2433215.21 0.00 0.00 0.00 4700.001* 31.250 199.286 4553.60 618.63 - 583.91 - 204.32 1457283.40 2433166.52 0.00 0.00! 0.00 l 6�i r i _` ',31.250 l99 .t .. v ' ' TT =, 670.50 k,g, " - 63Z$8 221:' 457265.51 +, ?9 82 l i ,.` i l 0.00 4900.001* 31.250 199.286 4724.58 722.38 - 681.84 - 238.59 1457247.62 2433069.13 0.00 0.00 0.00 5000.001 31.250 199.286 4810.07 774.26 - 730.81 - 255.72 1457229.73 2433020.44 0.00 0.00 0.00 5100.001 31.250 199.286 4895.56 826.14 - 779.78 - 272.86 1457211.84 2432971.75 0.00 0.00 0.00 5200.00t 31.250 199.286 4981.05 878.01 - 828.74 - 289.99 1457193.95 2432923.06 0.00 0.00 0.00 1250 3 �,., " 3 �_. "Ii d3 .1 74,32 r' .�. ,, . . > � a a « . � ..,57176 � 4 ° � u =�00 0.00 ,,,,, 5400.001 31.250 199.286 5152.04 981.77 - 926.68 - 324.26 1457158.16 2432825.67 0.00 0.00 0.00 5500.001 31.250 199.286 5237.53 1033.65 - 975.64 - 341.40 1457140.27 2432776.98 0.00 0.00 0.00 5600.001 31.250 199.286 5323.02 1085.53 - 1024.61 - 358.53 1457122.38 2432728.29 0.00 0.00 0.00 5700.001 31.250 199.286 5408.51 1137.40 - 1073.58 - 375.66 1457104.49 2432679.60 0.00 0.00 0.00 .: `::. 5800.001 31.250 199.286 } j 5494.00 'II ';* 1 `f. =54 _392 l 1' ,86.60 r . °I ,' Q.l l 0.0Q 1.00 r Planned Wellpath Report BA K E R P E BC -19 Version #3 HUGHES MARATHON Page 4 of 6 IN'TEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 ELLPATH DATA (96 stations) t = interpolated /extrapolated station • MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [ [ [ft] [ft] _ [ft] [ft] [sry ft] [sry ft] _ [ ° /100fti [ ° /100ft] _ [ °/100ft] _ 5845.40 31.250 199.286 5532.81 1212.83 - 1144.77 - 400.58 1457078.48 2432608.80 0.00 0.00 0.00 Begin Angle Drop 5900.00f 30.158 199.286 5579.76 1240.71 - 1171.09 - 409.78 1457068.87 I 2432582.64 2.00 -2.00 0.00 6000.00f 28.158 199.286 5667.08 1289.43 - 1217.07 -425.88 1457052.06 2432536.91 2.00 -2.00 0.00 6100.00f 26.158 199.286 5756.05 1335.07 - 1260.15 - 440.95 1457036.32 2432494.07 2.00 -2.00 0.00 "" � " n 5 .4 . 243245417., ,. x 000 >� � a o a � � , � .:158 199.286 . 846.56 1 ;�; � : - .2$p "= �5�;99 1457021 �z�- ��.00 -2.09 �� 6300.00f 22.158 199.286 5938.50 1416.91 - 1337.40 - 467.98 1457008.10 2432417.26 2.00 -2.00 0.00 6400.00f 20.158 199.286 6031.75 1453.00 - 1371.46 - 479.90 1456995.65 2432383.38 2.00 -2.00 0.00 6500.00f 18.158 199.286 6126.21 1485.82 - 1402.44 - 490.74 1456984.34 2432352.58 2.00 -2.00 0.00 6600.00f 16.158 199.286 6221.75 1515.32 - 1430.28 - 500.48 1456974.16 2432324.89 2.00 -2.00 0.00 6700.001 14.158 < .4486 63 18.27 1541.47 ,,,„%„,A54.96 - 509.12 4'; ;14 e ° ".. 5 2432300.35 2.00 `= a$ 0.00 6800.00f' 12.158 199.286 6415.64 1564.23 - 1476.45 - 516.64 1456957.30 2432278.99 2.00 -2.00 0.00 6900.00f 10.158 199.286 6513.74 1583.58 - 1494.71 - 523.03 1456950.62 2432260.83 2.00 -2.00 0.00 7000.00f 8.158 199.286 6612.46 1599.50 - 1509.74 - 528.28 1456945.13 2432245.89 2.00 -2.00 0.00 7100.00f 6.158 199.286? 6711.68 1611.96 - 1521.50 - 532.40 1456940.84 2432234.19 2.00 -2.00 0.00 7200.00f 4.158 1 ",!.:7,':1:4"; . 6811.27 1620.95 7 ; ..98 "` - 535.37 , P a 3 , " 243• ? is + ,.. �" `: 0.00 7300.00f 2.158 199.286 6911.11 1626.46 - 1535.18 - 537.19 1456935.84 2432220.58 2.00 -2.00 0.00 7400.00f 0.158 199.286 7011.09 1628.48 - 1537.09 - 537.86 1456935.14 2432218.69 2.00 -2.00 0.00 7407.91 0.000 199.286 7019.00 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 2.00 -2.00 0.00 LB (EOD) 7500.001' 0.000 199.286 7111.09 1628.49 - 1537.10 ' - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 7 a 199.286 7211.09 'i2:' 1537.10 = 1456935.14 32218.68 0.0'al 0.00 0.00 7700.00f 0.000 199.286 7311.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 7800.00f 0.000 199.286 7411.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 7900.00f 0.000 199.286 7511.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 7986.91 ' 0.000 199.286 7598.002 1628.49 - 1537.10 -537.86 1456935.14 2432218.68 0.00 0.00 0.00 LB -23 a ! as a a a 99.286 7611.a g 2.49 537 10 , X537.8 a 456935.. g.. =a a a 1D.00 8100.00f 0.000 199.286 7711.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8200.00f 0.000 199.286 7811.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8300.00f 0.000 199.286 7911.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8400.00f 0.000 199.286 8011.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 286 8111,9 "4537.10 1456935.14 32218.68 ft 0.00 :> ` ' -; 4t.0 ; ,� Planned Wellpath Report BA KfI ll E BC -19 Version #3 HUGHES MARATHON Page 5 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 1 III WELLPATH DATA (96 stations) 1' = interpolated /extrapolated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [ °] [ [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ °/100ft] [ °/100ft] [ ° /IOOft] 8600.00t 0.000 199.286 8211.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8700.00t 0.000 199.286 8311.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8800.00t 0.000 199.286 8411.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 8900.00t 0.000 199.286 8511.09 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 , ,s' ,+,a : k - 1 V): : 199.286 8611.09 1628.49 - 1537,10 - 537.86 1456935:14 2432218 08 0:00 0.00 0.00 9067.91 0.000 199.286 8679.00 1628.49 - 1537.10 - 537.86 1456935.14 2432218.68 0.00 0.00 0.00 TD - 3 1/2" Csg Pt HOLE & CASING SECTIONS Ref Wellbore: BC -19 Ref Wellpath: BC -19 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] _ [ft] [ft] [ft] [ft] 16in Open Hole _ 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00; 0.00 13.375in Casing Surface 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00 0.00 12.25in Open Hole 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 - 537.86 9.625in Casing Intermediate 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 -537.8 8.5in Open Hole _ 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 3.5in Casing Production 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 Planned Wellpath Report BA K I R I E BC -19 Version #3 HUGHES MARATHON Page 6 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) BC -19 Lower Beluga 16 (NAD83) 26- 7019.00 4537.10 - 487.86 1456985.13 2432217.90 60 °39'13.002 "N 151 °0120.398"W circle Jun -08 2) BC -19 Lower Beluga 23 (NAD83) 26- I 7598.001 4537.101 487.86 1456985.13 2432217.90 60 0 39'13.002"N1 151 0 01'20.398 "W' circle Jun -08 3) BC -19 TD (NAD83) 26- Jun -08 I 8679.001 - 1537.10' - 487.861 1456985.13 2432217.901 60 0 39 1 13.002"N1 151 °01'20.398"WI circle SURVEY PROGRAM Ref Wellbore: BC -19 Ref Wellpath: BC -19 Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [frl [ft1 0.00 2500.00' aviTrak (Magcorrl) C -19 2500.00 7447.91 aviTrak (Magcorrl) C -19 7447.91 9067.91 aviTrak (Magcorrl) C -19 � M tRATHON Oil Company 1311111 BAKER L ocation: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #19 HUGHES Field: Beaver Creek Unit (NAD83) well: BC-19 INTEQ MARATHON Facility: Pad #3 Wellbore: BC -19 Plot reference wellpath is BC -19 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 17- Jul -08 smb Mn. �rt Easting (ft) -250 -225 -200 -175 -150 -125 -100 -75 -50 -25 0 25 50 75 125 N 0 ec -10 m 8900 3800 SIOt #10 O — 100 100 ■ 3500 3200 e ry° 29 2300 2600 2000 75 75 — slot #11 8300 - O 7700 9tt _ 8600 ° 50 50 1- 7100 g 9 ° 6500 '. 5900 slot #6 ry 0° — 25 — Z9_ • 2000 8300 ° , slot #9 ° .8000 a slot #19 9y0 gC_ s 714• .900 2800 o 0 — 5300 e 3500 3 2300 3200 slot #5 -25 -25 — `' #3 -50 _50 .• 3500 Z o s lot #16 o -75 — — -75 5 r 0 0 Z -100 2 000 2300 ' Slot #13 2600 _125 -125 ■ ■ 0 '00 — -150 _150 3800 J -175 -175 — o ory — -200 -200 — — -225 _225 — -250 -250 — m 9 r m m ` U Tcn 3-' °° eC'7 -275.. 1 1 1 1 1 m 1 1 m 1 1 3 1 1 1 1 - 275 -250 -225 -200 -175 -150 -125 -100 -75 -50 -25 0 25 50 75 Scale 1 inch.50ft Easting (ft) ICI RATHON Oil CompaMt BAKE WR ■ Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #19 HUGHES Field: Beaver Creek Unit (NAD83) Well: BC -19 INTEQ MARATHON Facility: Pad #3 Wellbore: BC -19 Plot reference wellpath is BC -19 Version #3 True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 179 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad #3): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 17- Jul -08 s „.,�„ Easting (ft) - 900 -800 -700 -600 -500 -400 -300 -200 -100 0 100 200 300 400 1 1 1 1 1 1 1 2900 1 1 1 1 1 43800 _200 320 -200 3500 - 300 — - 300 4100 3800 400 — 400 2000 4100 - 500 ■ 4400 - 500 4400 - 600 ■ - B00 2300 4700 700 2000 -700 — -700 -800 — 2600 -800 5000 2300 sK 900 -900 Z o) 0 c a. s t 2900 co o _ Z 5300 -1000 9 2600 - 1100 — - 1100 3200 5600 1200 — - 1200 BC -19 Lower Beluga 16 (NAD83) 26- Jun -08 BC -19 Lower Beluga 23 (NAD83) 26- Jun -08 2900 BC -19 TD (NAD83) 26- Jun -08 3500 1300 - 1300 5900 .1400 — 3800 - 1400 6200 3200 1,rOp _ 6500 4100 - 1500 8600 ' k 4400 1500 — 8300 - 1600 100 4700 5000 3500 -1700 — -1700 m 0 1 1 1 1 1 1 1 1 1 1 1 `fi - 900 -800 -700 -600 - 500 -400 -300 -200 -100 0 100 200 300 400 5n1e 1 nn.200 ft Easting (ft) Clearance Report B A K E R ■ BC -19 Version #3 BAKER Approach HUGHE I MARATHON Page 1 of 39 IN'TEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 (2008) Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999938 Report Generated 17- Jul -O8 at 10:43:32 Convergence at slot 0.89° West Database /Source file WA_Anchorage/BC- 19.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location - 1194.98 1657.16 1457496.74 2433747.15 60 °39'28.140 "N 151 °01'10.611 "W Facility Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151°01'43.861"W Field Reference Pt 1455858.59 2434967.85 60 °39'39.909 "N 151 °01'43.861 "W WELLPATH DATUM Calculation method Minimum Curvature Glacier #1 (RKB) to Facility Vertical Datum 179.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 179.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft Surface Position Uncertainty included Declination 18.92° East of TN Dip Angle 73.57° Magnetic Field Strength 55508 nT Clearance Report BAKER i l BC 19 Version #3 MARATHON Closest Approach HUGHES Page 2 of 39 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 (2008) Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 ANTI COLLISION RULE Rule Name E -type Closest Approach w/Hole &Csg Limit:0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value 0.00ft Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: BC -19 Ref Wellpath: BC -19 Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 16in Open Hole 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00 0.00 13.375in Casing Surface 0.00 2500.00 2500.00 0.00 2500.00 0.00 0.00 0.00 0.00 I 12.25in Open Hole 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 - 537.86 9.625in Casing Intermediate 0.00 7447.91 7447.91 0.00 7059.00 0.00 0.00 - 1537.10 - 537.86 8.5in Open Hole 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 3.5in Casing Production 0.00 9067.91 9067.91 0.00 8679.00 0.00 0.00 - 1537.10 - 537.86 SURVEY PROGRAM Ref Wellbore: BC -19 Ref Wellpath: BC -19 Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 2500.00' aviTrak (Magcorrl) C -19 2500.00'; 7447.91 aviTrak ( Magcorrl) C -19 7447.91 9067.91 aviTrak ( Magcorrl) C -19 Clearance Report BAK I BC 19 Version #3 E MARATHON Closest Approach NV�NES Page 3 of 39 INTEQ :REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #19 (2008) Area Cook Inlet, Alaska (Kenai Penninsula) Well BC -19 Field Beaver Creek Unit (NAD83) Wellbore BC -19 Facility Pad #3 CALCULATION RANGE & CUTOFF From: 0.00ft MD To: 9067.91ft MD C - C Cutoff: (none) OFFSET WELL CLEARANCE SUMMARY (9 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C -C Diverging Ref MD of Min C -C Min C -C ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] Ell Sep [ft] Dvrg from [ft] [ft] Pad #3 slot #9 BC -9 BC -9 MWD <0 -5923> GCT Gyro <5943 -8858> 836.44 88.81 8800.00 8859.95 27.31 8859.95 PASS Pad #3 slot #3 BC -3 BC -3 MSS <0- 6393' >,MWD <6433 - 10005> 1345.78 93.74 1345.78 1354.27 75.76 1354.27 PASS Pad #3 slot #10 BC -10 BC -10 MWD <0 -8854> 1852.64 99.75 8900.00 1877.22 79.65 8900.00 PASS Pad #3 slot #16 BC -16 BC -16 MWD <0 -6422> 0.00 100.82 6400.00 0.00 87.32 6400.00 PASS x40016 BC -16 BC -1 a ,.c514 1> # tat ' ` . .: � ,� ' �, ' k e � � ��. � . ;� � 1 ffQ.82 � ,87.t:A . a a a;i PASS > s F as a a as �, Pad #3 slot #5 CM BC -5 GMS <0 -600> MMS <668 -7960> GMS <8000 - 16247> 3469.18 142.60 8300.00 3486.61 119.51 8300.00 PASS Pad #3 slot #6 BC -6 BC -6 GMS <0- 15844> 3362.50 163.52 3362.50 3395.12 136.85 3395.12 PASS Pad #3 Slot #13 BC -13 BC -13 MWD <0- 105005 3505.00 194.80 3505.00 3527.07 170.54 3527.07 PASS Pad #3 slot #11 BC -11 CHEM MWD <0 -8931> 0.00 190.43 3100.00 0.00 176.93 3200.00 PASS • Marathon Oil Company ' • IFE Well Name: Beaver Creek # 19 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN M� 9Woe Prepared For: MARATHON OIL COMPANY Well Beaver Creek # 19 Kenai Peninsula Alaska p, J 2C T • f*.mallgotjulit l‘z„ Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank July 22, 2008 I Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the revised recommended drilling fluid program for the Beaver Creek # 19 Well to be drilled this year. The following is a brief synopsis of the program. Overview: Beaver Creek # 19 is a development well targeting the Beluga formation at the Beaver Creek field. Flo -Pro fluid will be u sed for the intermediate and roduction intervals. After p fte logging the production interval, the well will be completed with a 3 -1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard Gel/Gelex spud mud. No problems were noted in this interval while drilling Beaver Creek # 11. Intermediate Interval: This interval will be drilled with a Flo -Pro NT fluid. After drilling out the surface cement, the well will be displaced to a standard Flo -Pro KC1 fluid. Safecarb bridging material will be maintained according to the mud program to minimize losses to the formation. Fluid loss should be maintained @ 7 - 9 cc's API. NOTE: Since this fluid will also be used in the production interval, care should be taken to maintain recommended mud properties while drilling the intermediate interval. Production Interval: This interval will be drilled with the same fluid that was used to drill the intermediate interval. The fluid will be pre - treated with Bicarb and/or citric acid prior to drilling out the cement. Any further fluid dilutions will be made in order to keep the mud properties at the recommended specifications. Fluid loss should be maintained @ 7 - 9 cc's API for this interval. Completion: The cement will be displaced with 6% KCl brine for the completion phase of the program. Conqor 404 will be added to the drilling fluid that will be left between the 3 -1/2" completion string and the 9 -5/8" casing on the final circulation prior to cementing. Jim Dwyer Project Engineer /M -I SWACO Reference Wells: Beaver Creek #10, #11, #13 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. . 1 alFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. EXECUTIVE SUMMARY r+ ' "I Our goal is zero spills and zero incidents and 100% compliance S2 44 while providing fluids and solids control services to Marathon Oil 4-; v 4„,.. NMe�`4 Company. M r S The solids van will continue to assist in removal of LGS for ��,�./ minimizing mud weight and dumping and dilution of fluids. Disposal costs at G & I facility will be reduced with the use of solids van. M r � Bil ._,M._....a,- We expect to drill this well for a product cost of less than $40.04 per foot. Aft We estimate the use of less than 7756 barrels to drill this well, not 'FE withstanding any losses to the formation. • 1 IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals _ Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval (ft) Fluid cost per Volume Usage foot 0 — 2500' < $10.72 ft < 2887 bbls 2500 — 7448' < $49.30 ft < 3296 bbls 7448 - 9068' < $57.04 ft < 1073 bbls Total Project Avg. Max. No accidents or Targets for < $40.04 < 7756 bbls incidents for M -I No Spills from Drilling Swaco personnel Centrifuge Van Interval Operation • 1 �► Marathon Oil Company 'FE Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 13 3/8" 16" 2500' 2500' Gel/Gelex Spud Mud 8.6 — 9.4 5 $31,391 Screens 150/180 mesh Desilter Centrifuge Van 9 5/8" 12 -1/4" 7448' 7059' Flo -Pro w /SafeCarb 9.0 — 9 $251,472 Screens 180 — 210 < 9.5 mesh Desilter Centrifuge Van 3 -1/2" 8 -1/2" 9068' 8679' Flo -Pro w /SafeCarb 9.0 — 6 $97,802 Screens 230 — 210 < 9.5 mesh Desilter Centrifuge Van 3 1/2" 8 -1/2" Completion 9068' 8679' 6% KC1 8.55 3 $13,691 ➢ Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). ➢ Condition the mud prior to running casing for all intervals. ➢ Cost does include the use of 3% LoTorq and engineering • 1 IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. FORMATION TOPS ESTIMATED PORE PRESSURES Pore Pressure Formation Estimated Tops (TVD) (ppg) Sterling 4850' 8.1 Beluga LB 15 6965' 8.5 Beluga LB 16 7019' 3.3 — 9.4 Beluga LB 23 7598' 3.3 — 9.4 TD 8679' 3.3 — 9.4 0 0 ll \ Marathon Oil Company =-- J IFE Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Product Usage Summary Surface Intermediate Production Completion % of PRODUCT Total Usage Total Cost 16" 12 -1/4" 8 -1/2" 3 -1/2" M -I WATE 659 644 1303 3.49 M -I Gel 1155 1155 3.47 Asphasol 64 64 1.38 Supreme Gelex 36 36 .18 Soda Ash 14 16 11 41 .26 Caustic Soda 14 33 11 58 .62 Conqor 404 9 5 14 4.93 Bicarb 16 11 27 .14 Conqor 303 4 4 .54 F1oVis 198 43 241 12.65 Desco CF 12 12 .14 Polypac UL 58 99 32 189 7.52 Sodium 29 33 21 10 93 1.55 Metabisulfite KC1 1385 451 210 2046 10.45 1 KlaGard 22 10 32 5.69 Safecarb 1319 429 1748 11.77 MIX II 264 264 1.87 LoTorq 90 29 119 25.38 Defoam X 18 6 24 .83 Fuel Surcharge 7.15 Engineer Service 4 7 5 3 19 M IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments BC #10 8.5 215 8.65 12 37 20 Spud in 2385 8.9 16 13 10.6 Condition mud for casing run w /Desco CF 6.125 3198 8.85 5 19 7.2 DrIg out, LOT 16.42 EMW, FloPro fluid 4516 9 6 21 7.6 DrIg 1318' in one day 5260 9 7 24 7.5 DrIg ahead 6440 9.25 8 29 7.1 Short trip - backreaming required 6906 9.3 9 27 7 Trip for bit - backream 7480 9.4 10 25 6.4 Trip in - OK 7788 9.5 10 25 6.3 Bit trip - backream through new hole section 8418 9.35 9 21 5.8 Trip in - OK drlg ahead 8587 9.4 9 19 6 DrIg ahead, trip for bit, backream new hole section 8854 9.55 9 20 6 © T.D. POH for logs 8854 Spot 16 PPG pill on bottom prior to running casing BC #11 17.5 400 8.75 15 25 14 Spud in 1520 8.95 17 36 12.2 Drlg ahead 2202 9.4 15 25 9.4 TD of surface interval 12.25 2242 9.2 7 19 14.8 Drill out 3697 9.35 10 18 18.6 Drill ahead 4656 9.35 8 20 19.6 Drill ahead 5714 9.35 9 22 18.4 Short trip ok 5910 9.5 9 20 18.4 Adding SafeCarb to combat losses to formation 6620 9.4 10 20 15.4 Drlg ahead 6825 9.5 11 28 17.8 Drlg ahead, add Lubetex 7120 9.5 11 29 7 DrIg ahead control fluid loss with Pac 7260 9.6 12 31 7 Condition mud, run & cement casing 8.5 8036 9.35 10 26 6.8 Dril out drlg ahead 8652 9.4 10 24 7.4 Drlg ahead getting 1000 unit of gas 8931 9.55 9 22 8 At td - run logs • • 11E Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Offset Well Information BC #13 16 0 8.5 19 34 15 Spud in 1013 8.75 8 25 20 Drlg ahead 2301 9.05 10 28 9.6 TD of surface interval 12.25 2360 8.95 12 21 7.2 Drill out 3456 9.25 12 19 7.4 Drill ahead 4353 9.5 11 23 6.9 Drill ahead 5486 9.2 22 21 6.6 Drill ahead 1 6360 9.2 10 25 7.2 Drill ahead 6477 9.3 11 25 7.4 Trip for bit, some tight spots 6861 2 9. 11 23 6.6 Drill ahead, short trip, tight spots, some seepage losses 7255 9.3 14 24 5.4 Drill ahead maintain PPG with centrifuge van 7308 9.3 12 26 8 Drill to casing point, losing 3 - 5 bph to formaiton 8.5 7328 9.3 8 17 6.8 New mud, drlg ahead 7621 9.25 9 22 5.4 DrIg ahead 8046 9.3 10 24 5.4 Drill ahead, add 3% Lubetex 8542 9.4 9 25 5.7 Short trip, OK 9111 9.4 10 26 6.6 Increasing clays, add Klagard 9343 9.6 10 27 6.8 Short trip, tight spots, increase PPG with barite 9728 10.1 11 31 5.8 Drlg ahead, circ out gas, increase PPG with barite 9873 10.35 13 29 5.6 Increase PPG after short trip, POH for MWD 10152 10.35 12 32 5.6 DrIg ahead, short trip OK 10500 10.4 13 30 6 DrIg to td, POH for logs, OK trip • IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Plans & Procedures COMMUNICATION — The Field Mud Engineer will communicate daily with the 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 problems, possible changes to the mud program, and proposals to use products not included in the mud program if they would aid in overall drilling performance. OFFSET WELL DATA — Please review Pad Data Sheets as part of prespud meeting and as drilling progresses thru various casing points. WHOLE MUD LOSSES TO FORMATION — Refer to fluid formulas for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. Loss circulation pills can vary in composition but should be a mixture of SafeCarb (20, 40, 250), MIX II, and possibly Gseal but definitely if well bore breathing is an issue. FLUID LOSS CONTROL — In the production interval the API fluid will be maintained at less than 6 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. PolyPac UL will be used as the primary fluid loss reducer as this is an excape well. LSRV — When drilling with a FloPro fluid, the low shear rate rheology as measured with Brookfield rheomter should be maintained between 30- 40,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. DRILL SOLIDS — MET — The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. MIXING CONDITIONS — Whenever possible all treatments to the mud system should be made as pre -mix additions. Polymers and KC1 should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. CORROSION — Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 404 concentration of +1- 2000 PPM. CORROSION — Sodium Metabisulfite additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm MYACIDE ADDITIONS — MYACIDE additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. SOLIDS VAN USAGE — The Solids Van should be used whenever drill solids become high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining factor for when to use the Solids Van. WEIGHTING UP — All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. Monitor K+ concentration daily with the use of strips to verify proper inhibition from K+ ion. • • IFE Marathon Oil Company 3° Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Interval Summary — 16" hole 0 - 2500' Drilling Fluid System Gel/Gelex Spud Mud g y p Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI WATE / PolyPac Supreme UL Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 150 — 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec. /qt) (lb. /100ft (m1/30min) ( %) 0 -2500' 8.6 -9.2 60 -100 25 -35 NC -12 +/ -9.5 <7% > Treat drill water with Soda Ash to reduce hardness. > Build spud mud with 20 — 25 PPB M -I Gel to +/- 100 seconds /quart funnel viscosity. > Lower funnel viscosity to +/- 75 after gravel zone has been drilled. > Add Gelex as needed to maintain sufficient viscosity for hole cleaning. > Increase funnel viscosity if fill on connections begins to occur. > Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. ➢ Add Sodium Metabisulfite to maintain a DO of < 3 PPM. > Condition mud prior to cementing casing to reduce yield point and gel strengths. ➢ Estimated volume usage for interval — 2887 barrels. > Estimated haul off volume — 4973 barrels. • 0 Adik Marathon Oil Company 'FE Well Name: Beaver Creek # 19 _ Location: Kenai, Alaska. Hole Cleaning Index 16" Surface M; Swi4C 01995 -2008 MILL.( . Surface ktervalBC 19 MD:2500 ft Operator:Marathon -_ uarkoi ma . L.0 ND :2500 ft WeIlName:BC 19 700GPM YIRTIMILII YDRAIAICS* IIRDH* B in L Couitr : Alaska ninaula Dste:71210008 Court ryAla aka Hole Cleaning 1.00 I I 1 IVhrathcn BC19 _ — R O P - ROP80ft /h• — BOP 120 ftA1r — — ROP 160ftihr oor Hole Cleaning — — RO P 200 ftAr 4 0.75 I K 0 a . Fair Hole Qeali lg to C C tQ 0.50 d V d eCleaning _ { , C Good Hol 0.25 7. -- ---- -_ j Very Good Hole Cleaning I 1 0 400 500 600 700 800 Flow Rate (gal /min) • • IFE Marathon Oil Company 3° Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Interval Summary — 12-1/4" hole 2500 — 7448' Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / PolyPac Supreme UL / KC1 / SafeCarb / LoTorq / MI WATE / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (miJ30min) ( %) 2500 - 7448' 9.0— < 9.5 8 — 12 30,000+ 7 - 9 < 7.5 +/- 5% ➢ Use one rig pit to drill out surface casing. In other rig pits, build new Flo -Pro fluid using the enclosed fluid formula. ➢ After drilling out surface casing, displace hole to Flo -Pro fluid prior to running leak off test ➢ If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. ➢ Estimated volume usage for interval — 3296 barrels. ➢ Estimated haul off volume — 4327 barrels. ➢ Condition mud prior to running 9 -5/8" casing. • S elm Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 12 1/4" Hole mi mac 01995 -2006 M- IL.L.C. BC 19 Intermediate Hole MD:7448 ft Operatorivlarathon %lark O WL.L.C. TV0:7085 ft WellName: BC 19 550 GPM VIRTU ALHYDRAULICS * Snapshot* BNSlce:7225 in Location:KenaiPeninsula n Y _ Dat. 12212008 CountryAlaska Depth Geometry Angle Density Va Hole Clean Pressure Distribution (ft) MDITVD CsgODAD (°) (Mal) (fthnln) Index ( %) )n) tin) 0 45 90 9.2 9.4 9.9 9.e o 120 240 ■03 4 F P Bit= 52.1 Ann= 6A DS =41.6 500 . • 1000 f lii 1500 \ , • D riling Fluid 2000 F LO PR O NT Mud Weight 9.2 Iblgal ' Test Temp 100 °F 2500 2500 N 13.375 _ _ 2258 12.800 System Data 3000 / Flew Rate 600 galhnin Penetration Rate 100 ft/hr 3500 Rotary Speed 80 rpm • Weight on Bit 10 1000 lb 4000 Bit Nozzles 13- 13- 13 -13•' 13.0.0.0.0 4500 • Pressure Losses Modified Power Law 5000 DriString 405 psi MWD 250 psi ssoa_ Motor 150 psi Bit 507 psi • 6000 Bit On/Off 100 psi Annulus 62 psi Surface Equip 27 psi 65001 U -Tube Effect 77 psi Total System 1577 psi 7000 - ESD ECD +Cut Csg Shoe 9.26 9.42 9.63 7500 Toes - 12.250 • 1 , TD 926 9.43 9.84 - ES) E Vipl- Vanion 3.1 F35 • F70 (2002) - E15 F- 4. e.e r 8000, - Ff111414, FIN - BC10.M08 F70110 NEN • 0 AI Ilk Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Hole Cleaning Index 12 1 /" Hole Mi swAc_ ©1995 -2006 M- IL.L.C. BC 19 Intermediate Hole MD:7448 ft Operator:Marathon _ , - 'Mark TVD:7088 ft WellName: BC 19 800 GPM VIRTUAL HYDRAULICS* HRH* BitSe:12.28 in Location:KenaiPeninsule Dats:712 2 12 0 0 8 CountryAlaska Hole Cleaning 1.00 Marathon BC 19 — ROP 25 ft /hr — RO P 50 ft /hr ._' ..... - ROP 75 ft /hr III Poor Hole •......� Cleaning �� — ROP 100ft /hr _'_ ..-_.. — ROP 125 ft/hr r ...�..._ -� 0.75 RO P 150 ft/hr �� ..-... X — RO P 175 ft /hr - °' . -'••.........i"■-. MS M IM_E �lLIIME�M�_Mil N 0.50 Elm .. _-. . . , . _ _ O Good Hole C can I .— 0. 25 _-- MMEN. I I 1111 IIIIIMENIMINIMMMIN 0 — 440 460 480 500 520 540 560 580 600 620 640 660 Flow Rate (gal /min) • • 4111 ft,. IFE Marathon Oil Company Well Name: Beaver Creek # 19 1E. Location: Kenai, Alaska. Fluid Formula - 12-1/4" Interval m sW BC 19 Intermediate Mud Formula 12.25" Interval from 2500 - 7448' Input Description BC 19 Intermediate Interval Mud Weight 9.4 Prehydrated Gel No Weight Material Code MI WATE Prehydrated Gel Conc. Weight Material SG 4.15 KCI Chloride Weight Material Price KCI Wt% 6 Output -1 bbl I Order of Products Concentration Volume Product Addition Field, Ib Lab, gm Field, bbl Lab, ml Usage 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosity 4 Polypac Supreme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 Asphasol Supreme 4.00 4.00 0.010 3.33 Wellbore Stability 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Congor 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 20 10.00 10.00 _ 0.010 3.57 Bridging Agent 11 MI WATE 30.24 30.24 0.021 7.20 Mud Weight 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger Before torque becomes a problem add up to 4% of the following: 13 LoTorq 14.00 14.00 0.04 14.43 Lubricity Toth 1 394.8 394.8 Estimated Volume Usage' 3296 Calculated Mud Weight 9.400 Total Chloride 29600 • • Marathon Oil Company 3e'FE Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Interval Summary — 8 -1/2" hole 7448 - 9068' Drilling Fluid System Flo -Pro Fluid Key Products Flo -Vis / PolyPac Supreme UL / KC1 / SafeCarb F / LoTorq / MI WATE / Caustic Soda / Conqor 404 / SafeScav NA Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens — 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build -up, gas kick, tight hole conditions Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MBT Solids (ft) (ppg) (cp.) (cps) (ml/30min) ( %) 7448 - 9068' 9.0 - < 9.5 10 — 14 30,000+ < 6 < 7.5 +/- 5% > Pre -treat drilling fluid with Bicarb and/or citric acid prior to drilling cement. Aggressively treat out cement contamination as soon as feasible. Build additional dilution volume to maintain proper specifications. > If running coals become a problem, treat with a 2 - 4 PPB addition of Asphasol Supreme. > Estimated dilution volume for interval — 1073 barrels. > Estimated haul off volume — 1082 barrels. > Condition mud prior to running 3 -1/2" casing. • • Marathon Oil Company J FE! Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Virtual Hydraulics SnapShot 8 1/2" Hole Mi BVVACI.- 01995 -2006 M- IL.L.C. BC 19 Production interval MD:9068 ft Operator Alarathon 'Mark of Ma L.L.C. 4b06PM TVD:8705 ft WellName: BC 19 VIRTUAL HYDRAULICS* SnapShot* 883 in Location:KenaiPeninsub Dts:7R22008 CountryAlaska Depth Geometry Angb Density Va Nob Clean PressureDistributbn (ft) MDITVD CsgODAD (°) RAM (ft/min) bdex (X) M1 0n) 0 45 90 9.4 9.8 18 10.0 0 180 320 V3 0 F p Bit 23.5 Ann =10 DS= 66.5 1 - tt \ . . 500 1000 0 1 1500 \ ■ 2000 prang Fluid 2500 I FLOPRO NT Mud Weight 9.5 lb/gal 3000 - Test Temp 100 °F 3500 System Data Fbw Rate 450 gaVmin 4000 • . i Penetration Rate 60 ft/hr 4 Rotary Speed 100 rpm . Weight on Bit 10 1000 lb 5000 . . . Bit Nozzles 0.778 in' 5500 Pressure Losses 3000 Modified Power Law 1 Dr6String 831 psi esoo MWD 207 psi 7000 Motor 124 psi Bit 294 psi 7530 H L 8.62s Bit On/Off 100 psi 448 7085 9.000 Annulus 125 psi 8000 Surface Equip 25 psi U -Tube Effect 36 psi 8500 TolalSyatem 1743 psi ili ESD ECD +Cut 9000 9068 " 8.500 1 Csg Shoe 9.55 9.81 9.89 8705 TD 9.55 9.83 9.91 8900 - MO E - F11 MN -V. n ion 3.1 n0♦ F70(2002) - go - Feld I-V6 10300 rf}y104. ® a .iti9 vat x 0I.- ec16.090 F70FLO ■ . • All ilk Marathon Oil Company IFE Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Hole Cleaning Index 8 1/2" Hole Mi S'NACQ 01995 -2006 M L.L.C. BC 19 Production interval MD:9068 ft Operator:Marathon 4600PM TVD:8706 ft W•IName: BC 19 VIRTUAL HYDRAULICS* MOH* Bit 6a Da:7222008 ht Loeation:KenaiPeninsula Country Alaska Hole Cleaning 1.00 -� i Marathon BC 19 — ROP 25 ft /hr _ _ ' — ROP 50 ft /hr I - ROP 75 ft /hr Poor Hola Cloanjnp I — ROP 100ft /hr — ROP 125 ft /hr 0.75' — ROP 150 ft /hr _ _ K G! C — Fai Mani g 0) _- C C I cg 0.50 - a) .11111111. _ U ing --- O 0.25 0— 400 420 440 460 480 500 520 540 560 580 600 Flow Rate (gal /min) • • IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Mud Formula - 8 -1/2" Interval Mi SW BC 19 Production Interval Mud Formula M -I L.L.C. 8.5" Interval from 7448 - 9068' Input Description BC 19 Production Interval Mud Weight 9.2 Weight Material Code MI WATE Weight Material SG 4.15 KCI Chloride Weight Material Price KCI Wt% 6 Output -1 bbl Order of Products Concentration Volume Product Addition Field, lb Lab, gm Field, bbl Lab, ml Usage 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.50 1.50 0.040 1.00 Viscosity 4 PolyPac UL 2.00 2.00 0.004 1.43 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 pH Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 Asphasol Supreme 4.00 4.00 0.010 3.33 Wellbore Stability 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Congor 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 20/40 10.00 10.00 0.010 3.57 Bridging Agent 11 MI WATE 25.00 25.00 0.017 6.12 Mud Weight 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Oxygen Scavenger Before torque becomes a problem add up to 3% of the following: 13 LoTorq 1 14.00 1 14.00 1 0.041 1 14.43 Lubricity 1 1 1 1 Total I 411.6 411.6 Estimated volume Usage! 1073 Calculated Mud Weight, 9.2 Total Chloride 29600 0 O i IFE Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Interval Summary — Completion Procedures 1 Corrosion Control Additive in Casing x Tubing Annulus Well Beaver Creek #19 } y pK §r5 ' Volumes: Tubing Volume 4-1/2" Tubing 78.89 barrels Annular Volume Casing x Tubir 398.89 barrels Tbg 4.50 x 2.992 x 9068 ft OpenHolexTbg 104.20 barrels Total Annular Volume 503.09 Tubing Volume 78.89 ril i i.. 1 1 Total Hole Volume 581.98 9.625 x 8.681 @ 7448 ft MD r. 8.500 x 4.50 @ 9068 ft MD Treatment Procedures. 1. After the 4 -1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 400 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A for each 100 barrels of drilling fluid pumped (5 drums total) 3. After the 400 barrels of drilling fluid with Conqor 303A have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 4 -1/2" x 9 -5/8" annulus. • • Aft Marathon Oil Company Well Name: Beaver Creek # 19 1� 3° Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. • • 1' Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE M -I BAR Weighting Agent *1 0 0 E M -I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL -FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E XCD Viscosifyer 1 1 0 _:. E HEC Loss Circulation Material 1 1 0 E Safe -Carb F,M,C Bridging and weighting *1 0 +., E agent LO WATE Weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M -I Seal F, M, C Loss circulation Material *1 1 L. E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 Q : , u E SPERSENE CF Dispersant 1 1 Mit E TANNATHIN Dispersant 1 1 0 ys E VENTROL 401 Surfactant ? ? ? SALT (Solar) Densifier 1 0 0 o E BROMIDE (NaBr) & Densifier 1 0 0, °'` F Brine Solution POTASSIUM Shale Inhibitor 1 0 ' E CHLORIDE - • • k� Marathon Oil Company _ Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammability Reactivity PPE CAUSTIC SODA Alkalinity control 3 0 1 ' X CAUSTIC POTASH pH Modifier 3 0 X SAPP Sodium Pyrophosphate *1 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 MYACIDE 25G - Biocide 3 0 0 J DEFOAM X - Defoamer 1 1 0 J G -SEAL Sized graphite LCM 1 1 0 4 E KLA -GARD Shale Control agent 0 1 0 J LUBE TEX Lubricant 1 1 0 J D -D CWT Detergent 2 1 0 J Conqor 404 Corrosion Inhibitor 1 1 0 J SAFEKLEEN Drilling fluid additive 1 1 0 J Asphasol Supreme Shale Inhibitor 1 1 0 J Soltex Shale Inhibitor 1 1 0 J SafeScav NA Oxygen Scavenger 1 1 0 J i • A ' Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions • • Ad Pk, Marathon Oil Company Well Name: Beaver Creek # 19 Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drilling Engineer wjtank @marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 646 -3233 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer oamend @miswaco.com 907 283 -0895 907 398 -9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @gmail.com 907 398 -8500 MI SWACO John Nicholson / Drilling Foremen alaska_drilling @marathonoil 907 283 -1312 Roland Lawson .com Marathon Responsibilities > MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. > Well progress will be monitored to look for any changes, which will improve the efficiency of the operation and / or avert trouble. > Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. > Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). > Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. • TRANSMITTAL LETTER CHECKLIST WELL NAME PTD# aWOf /QcY0 ■/ Development, Service Exploratory Stratigraphic Test Non- Conventional Well FIELD: 2 6 4 Y4Ce Cam'd POOL: 2rkL!/6, 4 Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER 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 ( PIS 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 in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non- Conventional Please note the following special condition of this permit Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 WELL PERMIT CHECKLIST Field & Pool BEAVER CREEK, BELUGA GAS - 80500 Well Name: BEAVER CK UNIT 19 Program DEV Well bore seg ❑ PTD#: 2081230 Company MARATHON OIL CO Initial Class/Type DEV / PEND GeoArea 820 Unit 50212 On /Off Shore On _ Annular Disposal ❑ Administration 11 Permit fee attached NA 2 Lease number appropriate Yes 3 Unique welt name and number Yes 4 Well located in_a_ defined pool Yes 5 Welllocated proper distance from drilling unit boundary Yes 6 Welllocated proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 2560 acres. 8 _If deviated, is wellbore plat_inciuded Yes 9 Operator only affected party Yes 10 Operator has_appropriate bond in force Yes Blanket Bond # 5194234. 11 Permit can be issued without conservation order Yes Appr Date 12 Perrnitcan be issued without administrative_approval Yes ACS 8/8/2008 13 Can permit be approved before 15-day wait Yes ill 14 Well located within area and_strata authorized by Injection Order # (put lO# in comments) (For _ NA_ 15 All weliswithin 1/4_ mile area_of review identified (For service well only) NA 16 Pte - produced injector: duration of pre production Tess than 3 months (For service well only) _ _ _NA_ 17 _Nonconven, gas_conforms to AS31.05.030(1.1.A)42.A - P) NA_ Engineering 18 Conductor string_provided Yes 19 Surface _casing protects all_known USDWs Yes Aquifers > 1300' tvd exempted, 40 147.102 (b)(1)(ii). 20 CMT_v_ol. adequate to circuiate_on conductor & surf csg Yes 21 CMTvoi adequate to tie -in long string to surf csg No 22 CMT will cover_all knownproductive horizons Yes ■ 23 Casing designs adequate for C, I, B & permafrost Yes 24 Adequate tankage_or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well(s), 25 if_a_re- drill, hes_a 107403 for abandonment been approved NA 26 Adequate wellbore separationproposed Yes Proximity analysis performed. Well both paths analyzed. No conflicts identified. 27 if diverter required, does it meet reg ulations Yes Appr Date 28 Drilling fluid program schematic_& equip list adequate Yes Maximum expected formation pressure 9,4EMW._ PtannedMW up to 9_.5 ppg. TEM 8/9/2008 29 BOPs,doihey meet regulation Yes 30 BOPE_press rating appropriate; test to (put psig in comments) Yes MASP calculated at 2348psi w/ 30% mud - % gas. With gas only 3374_psi. 3000_ psi_ BOP test appropriate, _ _ _ V 31 Choke_ manifold complies w /API_ RP - (May 8 4) Yes 32 Work will occur without operation shutdown Yes Completion to be without rig per usual practice. 33 Is presence of H28 gas probable No H2S is not known in 01 gas wells. _Rig has sensors and alarms, 34 Mechanical_condition of wells within AOR verified (For service well only) NA_ Geology 35 Permit can be issued w/o hydrogen sulfide measures No 36 Data presented on potential overpressure2ones Yes Appr Date 37 Seismic analysis of shallow gas zones NA ACS 8/8/2008 38 Seabed _condition survey (if off- shore) NA 39 Contact name /phone for weekiy_progress reports [exploratory only] No Geologic Engineering P 4 Commissioner: Date: Commissioner Date Date 8 —// Co* W� Q % 7 F /1 08 • • Well History File APPENDIX Information of detailed nature that is not • particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. • M MARATHN BC 19 SEC 34 T7N R10W SM September 14, 2008 — October 1, 2008 ti i I 110 1 ,* ' ,., 1 1,:',..; . %, . .tot. 1,, i • 30 a u • " S , + ¢ • rte- �,.�r� 0 Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist ,F E POCH • '. \. M MARATHON OIL COMPANY BC 19 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. SAMPLING PROGRAM AND DISTRIBUTION 13 4. DRILLING DATA 14 4.1. DAILY ACTIVITY SUMMARY 14 4.2. SURVEY RECORD 23 4.3. MUD RECORD 27 4.4. BIT RECORD 29 4.5. DRILLING PROGRESS CHART 30 5. MORNING REPORTS 31 FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III El EPOCH MARATHON OIL COMPANY BC 19 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Comments Downtime Low gas readings are pervasive due to the Standard Air Drive Trap Mounted In return m ud. pre-shearing ali s14" straight of p return mud. Falls 14" straight Ditch Gas Possum Belly; FID Total Hydrocarbon down through an air gap as it Analyzer And Chromatograph exits the flowline and impacts the fluid of a tiny possum belly in a wide splash, before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 4 days setting surface after Sensor g casing Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 • Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL BC 19 Unit Number: ML006, Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 31 25 Zack Beekman 24 Steve Forrest 1 Ralph Winkelman 18 20 Justin Vandenberg 19 El EPOCH 2 M MARATHON OIL COMPANY BC 19 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of BC 19 is to drill and log a Multiple Zone Development Gas well in the Beaver Creek Gas Field, with a minimum of hole problems or other concerns. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: BC 19 Field: Beaver Creek Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: Dan Byrd Mitch Burns John Nicholson Rowland Lawson Location: 1196' FNL, 1657' FEL, Sec 34 T7N R10W SM, X= 317,469.107, Y= 2,433,994.889 Classification: Multiple Zone Development Gas API #: 50 — 133 — 20579 — 00 — 00 Permit #: 208 - 1230 Activity Code: (WBS #s) DD.08.18263.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 160.50'GL, 182.19' RT Primary Targets: / Target Depths: Beluga LB15 (7354'MD, 6965'TVD), LB 16 (7408'MD, 7019'TVD) Primary Targets: / Target Depths LB 23 (7987'MD, 7598'TVD,) •Spud Date: September 14, 2008 Total Depth 9068' Total Depth Formation: Tyonek Total Depth Date: October 1, 2008 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad - Combo and MFT on wireline. 2.3. HOLE DATA BC 19 Hole Maximum Depth T.D. Weight ht Deviation Shoe Depth F.I.T. Casing Section Formation inc MD SSTVD ( ) MD SSTVD EMW 16" 2517' 2334.02' Sterling 9.6 1.45 13 3/8" 2510' 2327.03' 13.0 12 %" 7462' 6889.98' Beluga 9.6 0.70 9 5 /" 7447' 6874.98' 12.0 EXCAPE 8 '/" 9068' 8495.79' Beluga 9.6 1.22 3 1 /" 9052' 8479.48' Completion • II EPOCH 3 M MARATHON OIL COMPANY BC 19 • 3. GEOLOGICAL DATA Tuffaceous Claystone/Tuffaceous Siltstone (2517'- 2900') = medium gray to medium dark gray; minor fraction with higher lightness values to light gray; note that most of the supporting clay of the associated soft sandstones is medium to light gray; common light grayish brown secondary hues; note trace to spotty cuttings of much more argillaceous- looking slightly firm or brittle claystone with medium bluish gray secondary hue; soft to slightly firm or very slightly brittle; varying silt content suggests very abundant very thin interbeds of claystone and siltstone rather than massive homogeneous sections very slight shale structure in some clays, but not developed beyond slightly sub - fissile; clayey to silty to ashy to various soft matte and mixed textures; occasionally mottled in part; earthy lustres; some of "ashiest" clays have microsparkly luster from reflections off of abundant shards; soft clays generally hydrophilic and at least partially soluble; generally sticky, with moderate adhesiveness and moderate to poor cohesiveness; nearly pervasive supporting matrix for soft sandstones, and abundant clay has "floating" sand grains; though carbonaceous laminations are spotty, loose carbonaceous material is common. Sand /Sandstone (2517'- 2900') = medium gray to medium dark gray; faint greenish gray to olive gray secondary hues; note that secondary hues are more discernible when overall lightness values increase; dominant overall gray color 2517' -2850' as argillite - phyllite lithics dominant; significant overall greenish gray coloration after 2850' as greenstone become abundant; note trace to locally common very distinctive orange to reddish orange volcanic origin lithic rock fragments that contrast strongly against the overall gray and greenish gray bulk coloration; very fine lower to medium upper; moderately well sorted overall; dominantly fine lower to medium lower, and very abundant fraction of fine upper close to the medium lower boundary; very fine fraction is almost a second mode and nearly all glass shards winnowed from volcanic ash; angular to subangular; consistent small fraction of subrounded; discoidal to subdiscoidal; nearly 100% disaggregated when massive, soft clay supported sandstone interbeded with clay -silt; 100% compositional graywacke; 30 -60% quartz and volcanic glass, 40 -70% lithics and mafic minerals. • Tuffaceous Claystone/Tuffaceous Siltstone (2910'- 3000') = light to medium gray with bluish gray and brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull, earthy to waxy luster; slight to moderately soluble and expansive; poor to fair adhesiveness; fair to good cohesiveness; non calcareous trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace brownish gray siltstone commonly grades to a very silty sandstone/ sandy siltstone; soft to fragile; non calcareous; earthy luster; gritty texture. Sand /Sandstone (2970'- 3080') = medium gray with slight salt and pepper appearance overall with individual grains dominantly clear to translucent quartz and volcanic glass, frosted white, light to medium green to greenish gray, dark gray to black, trace dusky red to rust liths, trace dark bluish green; fine lower to medium upper; angular to subangular; very well sorted; dominantly disaggregated with trace medium grain sandstone; varicolored and grain supported; non calcareous; hard; trace very fine sandstone; brownish gray; soft; fragile; non calcareous; commonly grades to sandy siltstone/ silty sandstone. Tuffaceous Claystone/Tuffaceous Siltstone (3040'- 3160') = light to medium gray with bluish gray and brownish gray secondary hues; soft to slightly firm to firm; irregular shaped; silty to clayey to slightly gritty texture; dull, earthy to waxy luster; slight to moderately soluble and expansive; poor to fair adhesiveness; fair to good cohesiveness; non to slightly calcareous. Sand (3100'- 3220') = medium to medium dark gray with salt and pepper appearance overall with individual grains dominantly clear to translucent quartz and volcanic glass; "off- white ", light to medium green to greenish gray, dark gray to black, trace dusky red to rust lithics and minerals, trace dark bluish green; fine lower to coarse lower, dominantly fine upper to medium lower; moderately well to well sorted; disaggregated; angular to subangular; non calcareous. El EPOCH 4 M MARATHON OIL COMPANY BC 19 • Tuffaceous Claystone/Tuffaceous Siltstone (3180'- 3240') = light to medium gray with yellow gray and brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey to slightly gritty texture; dull to earthy luster; hydrophilic; moderately soluble and expansive; poor adhesiveness fair to good cohesiveness; non calcareous. Sand (3220'- 3340') = medium gray overall with a moderate to slight salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, frosted white; light green to greenish gray, medium to dark bluish green, medium to dark gray to black, dusky red to rust colored liths; fine lower to coarse lower, dominantly fine upper to medium lower; angular to subangular; moderately well to very well sorted; disaggregated; trace light gray clayey supporting matrix; very soluble; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (3300'- 3380') = light to medium gray with yellow gray and brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings with scattered firmer pieces showing pdc bit "scooped" cutting action; silty to clayey to slightly gritty texture; earthy to waxy luster; slight to moderately soluble and expansive; poor to fair adhesiveness; fair to good cohesiveness; non to slightly calcareous. Sand /Sandstone (3360'- 3480') = medium to dark gray with salt and pepper appearance overall with individual grains dominantly clear to translucent quartz and volcanic glass, and frosted white, light to medium green to greenish gray, dark gray to black, trace dusky red to rust lithics and minerals, trace dark bluish green grains; fine lower to medium upper; angular to subangular; very well sorted; dominantly disaggregated with trace very fine sandstone; light gray to grayish brown; soft; fragile; non calcareous; commonly grades to silty sandstone/ sandy siltstone. Tuffaceous Claystone/Tuffaceous Siltstone (3440'- 3520') = brownish gray to olive gray with light brownish gray secondary hues; very soft to moderately firm; fragile and pulverulent at times; irregular shaped cuttings, occasional fragments show pdc cutting action appearance; silty to clayey to slightly gritty texture; earthy to slightly waxy luster; poor adhesiveness; fair to good cohesiveness; hydrophilic; moderately soluble; slight to moderately expansive when hydrated; non calcareous; trace light grayish brown siltstone grades to a fragile, silty sandstone/ sandy siltstone. Sand (3520'- 3600') = medium gray to olive gray with a moderate salt and pepper appearance, individual grains are varicolored and include clear to translucent quartz and volcanic glass, and light to dark gray, black, white, light green dark bluish green, pale rose, dark red to rust - colored lithics and minerals; fine lower to medium upper; angular to subangular; poor to fair sorting; disaggregated with trace very soft sandstone pieces; very fine grain; light to medium gray; fragile; grain supported; non calcareous; trace dark brown to black carbonaceous material. Sand Sandstone (3600'- 3900') = medium gray to medium dark gray with very strong olive gray to dark greenish gray secondary hues; locally transitions to dominant olive gray to with gray secondary hues; homogeneous bulk color, only very slight upward shifts in lightness value; generally appears as a fairly "dirty" pepper with minor salt mixed in; overall greenish coloration derived from abundant fraction of greenstone rock fragments and associated minerals; also note trace to locally common very distinctive orange to reddish orange volcanic origin lithic rock fragments that prominently contrast against the overall gray to greenish gray bulk color; dominantly fine lower to medium lower; most is moderate to moderately well sorted within fine upper to medium lower; entire size range from very fine lower to trace conglomerate; spotty very fine fraction consists almost entirely of glass shards winnowed from volcanic ash, and often appears to be a second mode; occurrence of coarse and larger sand increases in the basal zones of massive sand sections; angular to subangular; consistent small fraction of subrounded; discoidal to subdiscoidal; almost all sands appear to be massive; cuttings near 100% disaggregated, so supporting matrix being disintegrated by drilling and going into solution; consolidated sandstone when present is supported by soft hydrophilic tuffaceous clay and silt. • El EPOCH 5 Ark) MARATHON OIL COMPANY BC 19 • Sand/ Sandstone (3600'- 3900') = soft consolidated sandstone and disaggregated grains are 100% compositional graywacke; estimate 30 -60% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chalcedony chert) and undifferentiated silica, 40 -70% diverse lithics, mafic minerals and many non - identified multi - colored minerals; lithics fraction dominated by grayish green, medium to dark green and variegated green low grade metamorphic greenstone rock fragments and minerals (especially chlorite) associated with greenstones; prominent lesser fraction of medium gray to dark gray to grayish black medium grade metamorphic argillite - phyllite rock fragments; many black minerals dominated by augite and biotite, but also common magnetite (attaching to metal probe) and various non - differentiated diffusely colored "blackish" minerals; note that the great abundance of different multi - colored grains /clasts represents a significant identifying feature; note continued trace to common well distributed amounts of many contrasting grains, including: orangish red to red to orange volcanic rock fragments, greenish yellow epidote, yellow citrine, colorless zircon, transparent smoky quartz, rose quartz, very pale purple quartzite, near transparent pale brown to yellow brown minerals, green chlorite, goldish brownish yellow mica (phlogopite ?) and several resinous black (non -coal) minerals; 70% of the quartz is colorless to very pale gray to very pale brown to very pale grayish orange and translucent, 30% of the quartz and nearly 100% of the volcanic glass is colorless and transparent. Sand/ Sandstone/Tuffaceous Sandstone (3900'- 4150') = note that though most characteristics remain unchanged, there is subtle but significant change in sand after 3900'; the overall grain size shifts from fine upper dominant to medium lower dominant; though overall color is largely unchanged the quartz - glass fraction slightly increases to 40 -70% and there more of a salt and pepper appearance; in addition to the strong olive - greenish gray secondary hue there is also a faint yellowish gray secondary hue; there is a more equal distribution of argillite - phyllite and greenstones, a very localized abundance of a bluish gray opaque silicate mineral (lithic ?) and rare but distinctive very well rounded quartz grains. Tuffaceous Claystone /Tuffaceous Siltstone (4140'- 4220') = medium to medium light gray with light to medium brownish gray secondary hues; very soft and pulverulent to very firm; irregular, globular to blocky shaped cuttings; silty, clayey to slightly gritty texture; earthy to slightly waxy luster; hydrophilic; moderate to very soluble; slightly expansive when hydrated; poor adhesiveness; poor to good cohesiveness; non calcareous. Sand (4200' - 43201 = medium gray with greenish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, and minor light to medium gray and greenish gray, dark gray, black, trace bluish green, pale rose and dusky red to rust; very fine upper to rare very coarse lower, dominantly medium grain; angular to rare subrounded dominantly subangular; poor to fair sorting; disaggregated with trace light gray to grayish white, ashy supporting matrix; non calcareous; occasional trace dark brown to black carbonaceous material/ coal. Sand /Sandstone (4280'= 4360') = medium to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, and minor light to dark gray, black and greenish gray; very fine lower to medium upper, dominantly fine grain; angular to subangular; moderately well sorted; dominantly disaggregated with scattered light gray sandstone; soft; fragile; non to slightly calcareous; very fine lower; well sorted commonly grades to silty sandstone -sandy siltstone; very light gray to grayish white, ashy supporting matrix. Tuffaceous Claystone/Tuffaceous Siltstone (4340' - 4440') = medium to medium light gray with light to medium brownish gray secondary hues; very soft and pulverulent to very firm; irregular, globular to blocky shaped cuttings; silty, clayey to slightly gritty texture; earthy to slightly waxy luster; hydrophilic; moderate to very soluble; slightly expansive when hydrated; poor adhesiveness; poor to good cohesiveness; non calcareous; trace dark brown to black carbonaceous material and coal. Coal /Carbonaceous Shale (4440' - 4520) = black with dark brown secondary hues; firm to hard and brittle; splintery to planar fracture; massive to flaky and platy; earthy to resinous luster; smooth to slightly gritty texture; poorly developed coal, possibly grading to a carbonaceous siltstone and or shale; sub - bituminous. El EPOCH 6 (Aik) MARATHON OIL COMPANY BC 19 • Sand (4480' - 46001 = medium to medium light gray with a greenish gray secondary hue overall, individual grains dominantly clear to translucent quartz and volcanic glass, with lesser amounts in equal proportion of light to medium gray black, pale rose, dusky red to rust, white and light to medium bluish green; very fine lower to trace coarse lower, dominantly fine upper to medium lower; angular to subangular; moderate to moderately well sorted; disaggregated; trace light gray to grayish white ashy - clayey non calcareous supporting matrix. Tuffaceous Claystone/Tuffaceous Siltstone (4560'- 4680') = medium to medium light gray with light to medium yellow gray secondary hues; very soft and pulverulent to firm; irregular, globular to blocky shaped cuttings; silty, clayey to slightly gritty texture; earthy to slightly waxy luster; hydrophilic; moderate to very soluble; slightly expansive when hydrated; poor adhesiveness; poor to good cohesiveness; non to slightly calcareous. Sand (4640'47801 = medium gray with greenish gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, and minor light to medium gray and greenish gray, dark gray, black, trace bluish green, pale rose and dusky red to rust; very fine upper to rare very coarse lower, dominantly medium grain; angular to rare subrounded dominantly subangular; poor to fair sorting; disaggregated with trace light gray to grayish white, ashy supporting matrix; non calcareous. Coal/ Carbonaceous Shale (4680'- 47801 = black with dark brown secondary hues; firm to hard and brittle; splintery to planar fracture; massive to flaky and platy; earthy to resinous luster; smooth to slightly gritty texture; no visible outgassing present; poorly developed coal, possibly grading to a carbonaceous siltstone and or shale; sub - bituminous. Tuffaceous Claystone/Tuffaceous Siltstone (4760'- 48401 = medium to medium light gray with light brown to brownish gray secondary hues; very soft to slightly firm; irregular shaped with occasional pdc bit "scooped" appearance; silty to slightly gritty texture; earthy to slightly sparkly luster; moderate to very soluble; poor adhesiveness; fair to good cohesiveness; trace visible shards; non calcareous; trace thin 4110 coal beds. Sand /Sandstone (4780'- 5280') = note transition in overall color after 4780', from dominant medium gray with olive gray and greenish gray secondary hues, to dominant light olive gray to olive gray with light medium gray to medium gray secondary hues; general increase in bulk lightness value due to increasing quartz and glass fraction; sand in most samples appear fairly homogeneous; often has a greenish - grayish slight "dirty" pepper and salt or salt and pepper appearance; greenish coloration derived from abundant fraction of rock fragments and minerals from low grade metamorphic greenstone sources; note trace to common well distributed (but less abundant than higher in column) very distinctive orange to reddish orange to red volcanic lithic rock fragments that contrast strongly against the overall olive gray to gray bulk color; most is moderate to moderately well sorted in fine upper to medium lower range; many thin localized variations in grain size and sorting; consistent minor mode of very fine grains that are nearly all glass shards winnowed from volcanic ash; upper size can range to rare very coarse lower in basal zones of massive sands; dominant angular to subangular and discoidal to subdiscoidal; consistent small fraction of subrounded to rounded grains; note distinctive rare well rounded quartz grains; very abundant disaggregated grains; consolidated sandstone is of three major variations: 1) tuffaceous clay matrix supported sandstone that is generally soft, easily hydrated and obviously easily disintegrated to result in the abundant loose grains, 2) mixed grain and matrix support sandstone with combination of tuff clay -ash and calcite - silica cementation, 3) tuffaceous sandstone with dominant matrix support of volcanic ash and clay that has abundant micro shards and shards, is usually light gray color, ranges from soft to slightly brittle nearly always silt free. • Li EPOCH (A0i) MARATHON OIL COMPANY BC 19 • Sand /Sandstone (4780'- 5280') = changing composition after 4780', compositional graywacke less dominant, many sections dominant lithic arenite; estimate 50 -75% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chalcedony, chert) and undifferentiated silica, 20 -45% diverse lithics, mafic minerals, non differentiated multi - colored minerals; lithics dominated by grayish green, green and variegated green lo grade meta greenstone rock fragments and associated minerals (chlorite); smaller fraction of medium gray to grayish black med grade meta phyllite - argillite rock fragments; differentiated black minerals are augite biotite, magnetite; common non - imbedded dark colored "blackish" minerals; diversity of minerals is significant feature; note continued trace to common well distributed grains with high contrast, including: orangish red to red to orange volcanic rock fragments, red jasper, greenish yellow epidote, yellow citrine, colorless zircon, transparent smoky quartz, rose quartz, very pale purple quartzite, near transparent pale brown to yellow brown minerals, green chlorite, goldish brownish yellow (phlogopite) plus several resinous black (non -coal) minerals; 70% of the quartz is colorless to very pale gray to very pale brown to very pale grayish orange and translucent, 30% of the quartz and nearly 100% of the volcanic glass is colorless and transparent. Coal and Sand /Sandstone (5280'- 5400') = note interbedded coal and sand from 5280' to 5340'; coal appears low to high grade lignite, carbonaceous shale in part, black, earthy to slightly resinous, planar fracture, often with sand grains (and carbonized wood particles) on open partings, brittle and fragile to rare marginally hard; softer coal between softer coarser sandstone and harder coal between calcareous cemented sandstone; only spotty visible outgassing from coals; sandstone characteristics same as immediately above, note that clastic coal prominent lithic constituent in brown - looking sandstone; note significant clasts ranging from coarse upper to granule is basal zone of massive sand. Tuffaceous Claystone /Tuffaceous Siltstone (5400'- 5480) = medium light gray to bluish gray with light to medium brown to brownish gray secondary hues; soft to slightly firm; fragile and pulverulent; irregular shaped cuttings; silty to clayey to slightly gritty from very fine suspended sands and glass shards; earthy to slightly sparkly luster; poor adhesiveness; fair cohesiveness; moderately soluble and expansive; non calcareous; trace dark brown to black microthin carbonaceous laminations and inclusions; continued thin coal/ carbonaceous shale beds in dominantly sand and claystone formation. Sand (5480'- 57001 = medium gray to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light gray and greenish gray, dark gray to black, trace bluish green, pale rose and dusky red to rust lithic fragments and minerals; very fine lower to very coarse upper, dominantly medium upper; angular to subangular; poor to fair sorting; dominantly disaggregated with trace light gray to grayish white ashy - clayey soluble supporting matrix; non to slightly calcareous; trace light gray with light blue and pink secondary hues in some sandstones; fragile; soft; very ashy in part; slight to moderately calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (5600'- 5720') = medium light gray to bluish gray with light to medium brown to brownish gray secondary hues; soft to slightly firm; fragile and pulverulent; irregular shaped cuttings; silty to clayey to slightly gritty from very fine suspended sands and glass shards; earthy to slightly sparkly luster; poor adhesiveness; fair cohesiveness; moderate to very soluble; slight to moderately expansive; non calcareous; present as supporting matrix for loose sand. Sand (5700'- 5820') = medium gray to medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, and minor light gray and greenish gray, dark gray to black, trace bluish green, pale rose and dusky red to rust; very fine lower to very coarse upper, dominantly medium upper; angular to subangular; poor to fair sorting; dominantly disaggregated with trace light gray to grayish white ashy/ clayey supporting matrix. Sand (5780'- 5840) = light medium gray to light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, and minor light to medium gray to greenish gray, dark gray, black, trace bluish green, pale rose and dusky red to rust; very fine lower to very coarse upper, dominantly medium lower; angular to subangular; poor to fair sorting; dominantly disaggregated; non calcareous. EI 8 EPOCH MARATHON OIL COMPANY BC 19 • Sand /Sandstone (5820'- 6050) = note this interval is distinguished by the overall homogeneity of color, sorting grain characteristics and composition; dominant light olive gray to olive gray with Tight medium gray to medium gray secondary hues; note slightly "dirty" greenish - grayish pepper and salt appearance; greenish colorations derived from abundant greenstone rock fragments and associated green minerals; note trace to common well distributed very distinctive orange to reddish orange to red volcanic lithic rock fragments that contrast strongly against the overall olive gray to gray bulk color; moderately well to moderately sorted in fine upper to medium lower range; very fine grains nearly all glass shards winnowed from volcanic ash, and often appear as 2nd very minor mode; rare to trace grains to very coarse; dominant angular to subangular with very minor subrounded to rounded; very abundant to pervasive disaggregated grains; consolidated sandstone most soft tuffaceous clay matrix support or mixed calcareous - siliceous and clay grain or matrix support; lithic arenite to near compositional graywacke; estimate 60 -80% quartz and volcanic glass, trace feldspar, 5 -15% cryptosilica (chalcedony, chert) and undifferentiated silica, 20 -30% lithics and mafic minerals. Sand /Conglomeratic Sand/Tuffaceous Sandstone (6040'- 6180') = light to medium gray with light olive gray secondary hues, moderate to slight salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, with minor light to medium gray to translucent gray, dark gray to black, "off white ", and trace dusky red to orange and light to medium greenish blue; very fine upper to very coarse upper to rare pebble, dominantly medium upper to lower; angular to rare subrounded, dominantly subangular; fair to good sorting in fine to medium range, poorly sorted in coarse; dominantly disaggregated with scattered tuffaceous sandstone; fragments have same colors as above and have a white, ashy supporting matrix; very fragile; non to slightly calcareous; common glassy shards trace black carbonaceous material/ coal. Sand /Conglomeratic Sand (6160'- 6280') = note overall color becoming darker, medium gray to dark gray with slight salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with medium to dark gray to black with trace light gray, light greenish gray, rare pale rose 411 and dusky red to rust lithics and minerals; very fine upper to very coarse upper to occasional pebble, dominantly medium lower to fine upper; angular to subangular with rare subround pebble; moderately well sorted in fine to medium lower, poorly sorted in coarse range; dominantly disaggregated with scattered white, ashy tuff supporting matrix; very fragile; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (6240'- 6360) = light gray to medium light gray with light brown and bluish gray secondary hues; very soft; fragile; irregular shaped with occasional pdc bit "scooped" appearance; silty to clayey to slightly gritty texture from suspended sands; earthy to slightly waxy to sparkly luster from glass shards; moderate to very soluble; slight to moderately expansive when hydrated; poor adhesiveness; poor to fair cohesiveness; non calcareous commonly acts as supporting matrix for loose sands. Sand /Conglomeratic Sand (6320'- 6480') = medium to dark gray with slight salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with medium to dark gray to black with trace light gray, light greenish gray, rare pale rose and dusky red to rust; very fine upper to very coarse upper to occasional pebble, dominantly medium lower to fine upper; angular to subangular with rare subround pebble; moderately well sorted in fine to medium lower, poorly sorted in coarse range; dominantly disaggregated with scattered white, ashy tuff as supporting matrix; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (6400'- 6500') = light gray to medium light gray with light bluish gray secondary hues; soft to slightly firm; irregular shaped with occasional pdc bit "scooped" appearance; silty to clayey to slightly gritty texture from suspended sands; earthy to slightly waxy to sparkly luster from glass shards; moderate to very soluble; slightly expansive when hydrated; poor adhesiveness; poor to fair cohesiveness; non calcareous. �l EPOCH 9 (Ali) MARATHON OIL COMPANY BC 19 • Sand /Sandstone /Conglomeratic Sand /Conglomerate (6480'- 6710') = medium gray with strong light olive gray secondary hues; prominent slightly "dirty" pepper and salt appearance; note increasing contrast between light and dark colored constituents in sample as the size of grains /clasts increases; very fine upper to trace pebble; dominant fraction is medium upper to granule; interval is series of repeat fining upward sequences and poorly sorted overall; sand in uppermost zones at top of fining is locally moderately well sorted; mostly angular to subangular, but a small fraction of the finer sand and most of conglomeratic clasts are subrounded to well rounded; dominantly disaggregated; lesser fraction of both grain and matrix supported consolidated sandstone and conglomeratic sandstone; note diverse, complex inter -grain support; most sandstone supported by weak siliceous - calcareous and tuffaceous clays; isolated sandstone pieces are non to slightly calcareous; upper part of massive sands may be lithic arenite but overall composition is compositional graywacke ( >30% lithics); note much greater diversity of lithics as fraction of conglomerate clasts increases; quartz and greenstone clasts are slightly dominant, but all other clasts are multi - colored rounded rock fragments from many sources; note near absence of distinctive well distributed spotty orangish red to red volcanic grains. Sand/ Sandstone /Conglomeratic Sand /Conglomerate (6710'- 6850) = overall color is intermediate between medium gray to medium dark gray and light olive gray to olive gray; primary color is dependent on subtle shifts in relative fractions of quartz, gray - colored metalithics and greenstone lithics; also note local very faint bluish gray secondary hue; continued "pepper and salt" appearance; very fine upper to trace pebble; dominantly fine upper to medium upper; visible fining upward sequences; basal zones are mostly coarse lower to granule; angular to subangular overall with increasing rounded and sub - spherical grains in basal zones; near 100% disaggregated; trace consol pieces both matrix and grain supported. Sand /Conglomeratic Sand (6800'- 6920') = medium to dark gray with slight salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass with minor medium to dark gray to black, "off white ", and trace greenish gray; fine lower to trace pebble and pebble fragments, dominantly medium; angular to rare subrounded very coarse lithics, dominantly subangular; poor to fair 4111 sorting; dominantly disaggregated with trace sandstone pieces; fragile with light grayish white, ashy supporting matrix; non calcareous. Tuffaceous Claystone/Tuffaceous Siltstone (6860'- 7000') = light gray to light bluish gray with light brown to brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings silty to clayey texture; dull to earthy luster; moderate to very soluble; moderately expansive when hydrated; poor adhesiveness; poor to fair cohesiveness; trace dark brown to black micro -thin carbonaceous laminations and inclusions; non calcareous; claystone commonly acts as a supporting matrix for loose sands. Sand /Conglomeratic Sand (6940'- 7140') = medium to dark gray: partial pepper and salt appearance; dominantly clear to "off white" translucent quartz and volcanic glass with minor medium to dark gray to black; very fine upper to very coarse upper and pebble, dominantly medium; angular to subangular; poor to moderate sorting; dominantly disaggregated; sandstone with grayish white ashy tuffaceous clay or shard - abundant volcanic ash supporting matrix; non calcareous; trace very thinly interbedded dark brown to black carbonaceous shale /coal. Coal /Carbonaceous Shale (7030'- 7100') = very dark brown to black; dominant blocky to platy planar fracture; earthy luster; dense matte texture; mostly low grade lignite; thinly bedded with sandstone. Sand /Sandstone /Conglomeratic Sand /Conglomerate (7140'- 7250) = homogeneous medium dark gray to grayish black due to abundant medium gray to black lithic grains - minerals; appears pepper and salt with colorless to pale gray transparent to translucent quartz, and colorless transparent volcanic glass; very fine upper to pebble; dominant medium lower to coarse upper; evident fining upward; moderately sorted when medium upper and finer, poorly sorted when coarser; angular to subangular and discoidal to subdiscoidal; constant small fraction of subrounded to rounded and sub - spherical through lower size grains, and increased rounded and spherical when larger and conglomeratic; very abundant to near 100% conglomeratic; spotty consolidated sandstone is matrix and grain supported by complex inter -grain mix of volcanic ash derived clay -silt, microshards, devitrified ash and weak silica - calcite cementation; nearly all is fragile and would be easily pulverized by bit and fluid action. • €l EPOCH 10 MARATHON OIL COMPANY BC 19 Sand /Sandstone /Conglomeratic Sand /Conglomerate (7140'- 7250') = all compositional graywacke: estimate 30 -60% quartz and glass grains, trace feldspar, 10 -15% cryptosilica (chalcedony, chert) and undifferentiated silica, 40 -60% lithics and mafic minerals; lithics fraction strongly dominated (65 -80 %) by medium gray to grayish black medium grade meta phyllite rock fragments, followed by associated dark gray to black (10 -15 %) argillite fragments, (5 -15 %) green to grayish green to variegated green low grade meta greenstone rock fragments and (trace -10 %) diverse multi -color clasts from many sources; dominantly black mafic minerals, but many non - identified minerals. Sand /Sandstone /Conglomeratic Sand /Conglomerate (7250'- 7400) = note that at 7250' there is a shift in primary overall color from medium dark gray to olive gray, due to prominent increase green- variegated green low grade meta greenstone rock fragments; all other characteristics with minor variations. Sand /Conglomeratic Sand (7360'- 7460') = medium to dark gray with slight salt and pepper appearance, individual grains dominantly medium to dark gray, black, clear to translucent quartz and volcanic glass, trace light to medium bluish green fine lower to pebble and pebble fragment dominantly medium lower to coarse lower; poorly sorted; abundant disaggregated grains with sandstone fragments; hard to friable; calcareous and siliceous cement trace calcite fragments; trace light gray to grayish white ashy tuff; fragile. Tuffaceous Claystone/Tuffaceous Siltstone (7460'- 7580') = medium light gray with light brown secondary hues; very soft; sticky; amorphous, globular cut- tings; silty to clayey texture; earthy to greasy luster; moderate to very soluble; expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non calcareous; trace thin coal beds. Coal /Carbonaceous Shale (7570'- 7680) = black with dark brown secondary hues; firm to hard; brittle; blocky to platy and splintery; planar fracture dominant; earthy to resinous luster; smooth to silty texture; trace visible outgassing. Sand /Conglomeratic Sand /Conglomerate (7500' - 7700') = medium light gray with a weak olive gray secondary hue, individual grains dominantly light to medium gray, clear to translucent quartz and volcanic glass, dark gray to black lithics and minerals; very fine upper to occasional pebble and pebble fragments, dominantly fine upper to medium lower; angular to subangular with trace rounded to subrounded pebbles; poorly sorted overall, fair to good sorting in fine to medium range; dominantly disaggregated with trace calcareous and siliceous cemented sandstone pieces; very hard; trace grayish white tuff. Tuffaceous Claystone/Tuffaceous Siltstone (7660'- 7780') = medium light gray with light brown secondary hues; very soft to rare slightly firm; shapeless, globular to trace wedge shaped cuttings; silty to clayey to slightly gritty texture from suspended sands; earthy to greasy luster; hydrophilic; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; trace dark brown to black micro -thin carbonaceous laminations and inclusions; trace thin coal beds/ carbonaceous shale beds. Sand /Sandstone (7720'- 78401 = medium to medium light gray with light olive gray secondary hues, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium gray dark gray, light to medium greenish gray very fine lower to trace very coarse lower, dominantly fine lower to medium lower; angular to subangular; moderately well sorted; abundantly disaggregated; spotty to locally common consolidated pieces are mostly matrix supported with clay and ash; non to very slightly calcareous; spotty consolidated pieces are slightly resistant and crunchy, despite the same outward appearance as softer sandstones, indicating localized secondary silica - calcite mineralization; some sandstone has clastic coal fragments. • El EPOCH 11 MARATHON OIL COMPANY BC 19 • Tuffaceous claystone/Tuffaceous Siltstone (7780'- 8200) = dominant medium gray to light brownish gray, but many other associated gray and brown primary colors and secondary hues; also many subtle upward and downward shifts in lightness value; often pale brown to brown when adjacent and interbedded with coals; note significant "coaly" zones that are a carbonaceous tuffaceous claystone; these sediments are derived from original air fall volcanic ash that has been reworked and redeposited but still retains abundant discernible glass microshards and larger shards; note that there is no clear separation of volcanic ash and tuffaceous claystone, but the volcanic ash is often significantly Tess reworked, has very abundant shards, generally looks "fresher ", is rarely mottled, often has higher lightness values and occasionally displays faint remnant textural patterns that resemble its original vitriclastic texture; note traces of distinctive bluish gray clays that fairly argillaceous and have only a tiny fraction of shards; note range of hardness from very soft to marginally hard; most is soft to slightly brittle or slightly firm; soft tuffaceous clays are mostly soluble and hydrophilic, with moderate adhesiveness and cohesiveness; clayey to silty to ashy to various soft matte and mixed textures; earthy lustres; in part micro - sparkly when many shards are reflected in plain light; brittler, firmer claystones have irregular to sub - blocky cuttings habit, soft clay is amorphous to lumpy; note spotty to very common very dark brown to black coal /carbonaceous laminations and floating particles. Sand / Sandstone/Tuffaceous Sandstone (7840'- 8500') = medium gray to medium dark gray with faint to moderate light olive gray to olive gray secondary hues; locally transitions to dark gray with faint brownish gray secondary hues; bulk color is mostly homogeneous with upward shifts in lightness value when becoming tuffaceous; generally appears as dark "dirty" pepper with minor salt mixed in; overall gray color derived from abundant of phyllite and argillite rock fragments and associated minerals; especially note that phyllite rock fragments are schistose and slightly weathered and have a very distinctive texture that contrasts against the other lithic grains and the quartz fraction; dominantly fine lower to medium lower; most is moderate to moderately well sorted within fine upper to medium lower; entire size range from very fine lower to trace very coarse; spotty very fine fraction consists almost entirely of glass shards winnowed from volcanic ash, and often appears to be a second mode; the percentage of coarse and larger sand increases in the basal zones of massive sand sections; angular subangular; consistent tiny fraction of subrounded; discoidal to subdiscoidal; most of the sands appear to be massive, but many smaller zones appear thinly interbedded; thickest sections display fairly subtle fining upward; very abundantly disaggregated but also abundant consolidated pieces; most consolidated sandstone is matrix supported by tuffaceous clay -silt and volcanic ash, but large fraction is also grain supported, with a generally complex mix of tuffaceous clay -silt, volcanic ash, both primary and secondary silica and calcite, devitrified ash, concentrations of flushed microshards, devitrified ash and various alteration products; occasionally the tuffaceous sandstone has a nearly white ash matrix, and some of the tuff sandstone has a crunchy consistency from secondary silica (possibly due to in situ partial shard dissolution). Sand /Sandstone/Tuffaceous Sandstone (7840'- 8500') = nearly 100% of sand and sandstone is compositional graywacke; estimate 40 -60% quartz and volcanic glass, tr feldspar, 5 -15% cryptosilica (chalcedony chert) and undifferentiated silica, 40 -50% diverse lithics, mafic minerals and many non - identified multi - colored minerals; lithics fraction dominated by medium gray to dark gray to grayish black medium grade metamorphic phyllite - argillite rock fragments; phyllite rock fragments are up to 85% of the total lithics and many fragments are schistose, slightly weathered and have a very distinctive rough graininess that contrasts against other grains; 5 -10% of lithics are dark gray to black medium grade meta argillite rock fragments closely associated with the phyllites; 5 -10% of lithics are grayish green, medium to dark green and variegated green low grade metamorphic greenstone rock fragments and associated minerals; remaining Trace -5% of lithics are very diverse from apparent multiple sources; black minerals slightly dominated by augite, biotite, and magnetite, but many non - differentiated "blackish" slightly colored minerals; note presence of many sedimentary lithics; especially prominent are clastic coals fragments, dark yellowish brown rock fragments of calc tuff and micro silt "rip- ups "; note rare to spotty orangish red to red to orange low grade jasper, greenish yellow epidote, yellow citrine, rose quartz, very pale purple quartzite, smoky quartz and black resinous (non -coal) minerals; 75% of the quartz is colorless to very pale gray to very pale brown to very pale grayish orange and translucent, 25% of the quartz and nearly 100% of the volcanic glass is colorless and transparent. • El EPOCH 12 (ia MARATHON OIL COMPANY BC 19 Coal /Carbonaceous Shale (8550'- 8680) = black with dark brown secondary hues; very firm to hard; brittle at times; blocky to platy to splintery; planar fracture dominant with trace conchoidal and birdeye; earthy to resinous luster; smooth to silty to slightly gritty texture; poorly developed and commonly grading to a dark brown carbonaceous siltstone/ shale; sub - bituminous; larger, well developed coal fragments have visible outgassing. Tuffaceous Claystone/Tuffaceous Siltstone (8580'- 8720') = light medium gray to light gray and light brownish gray with light bluish gray and light to medium brown secondary hues; very soft to slightly firm to occasionally brittle shapeless, globular cuttings to rare blocky and wedge shaped; silty to clayey to gritty texture from abundant fine grain suspended sands; earthy to greasy luster; moderate to very soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness; fair to good cohesiveness; trace firmer siltstone has dark brown to black micro -thin carbonaceous laminations and particles; non to slightly calcareous; commonly acts as supporting matrix for loose sands. Sand /Sandstone (8720'- 8840') = light medium gray overall; dominantly clear to translucent quartz and volcanic glass, with abundant light to medium gray to black lithics and minerals; very fine lower to rare very coarse, dominantly fine upper to medium lower; angular to subangular; moderately well sorted; dominantly disaggregated; trace light gray sandstone has light gray tuffaceous clay supporting matrix; local very light gray ashy - clayey supporting matrix; soft to slightly firm moderate to very calcareous; note very fine sandstone commonly grades to sandy siltstone or silty sandstone; trace calcite. Coal /Carbonaceous Shale (8800'- 8900') = black with dark brown secondary hues; firm to brittle to hard; blocky to platy; earthy to resinous luster; smooth texture; dominantly planar fracture; trace outgassing. Tuffaceous Claystone/Tuffaceous Siltstone (8860'- 8980') = light medium gray to light gray and light brownish gray with light bluish gray and light to medium brown secondary hues; very soft to slightly firm to occasionally brittle shapeless, globular cuttings to rare blocky and wedge shaped; silty to clayey to • gritty texture from abundant fine sand grains; earthy to greasy luster; moderate to very soluble; slight to moderately expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non to moderately calcareous; trace to common very dark brown to black micro -thin carbonaceous laminations and particles; grades to carbonaceous tuffaceous mudrocks when next to coals. Coal /Carbonaceous Shale (8920'- 9060') = black with dark brown secondary hues; very firm to hard; brittle at times; blocky to platy to splintery; planar fracture dominant with trace conchoidal and birdeye fracture; earthy to resinous luster; smooth to silty to slightly gritty texture; well developed and occasionally grading to a dark brown carbonaceous siltstone/ shale; abundant outgassing. Sand (8980'- 9060') = medium gray overall, dominantly clear to translucent quartz and volcanic glass; very fine low to medium upper; angular to subangular; poorly sorted; disaggregated. 3.1. SAMPLING PROGRAM AND DISTRIBUTION BC 19 Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. Washed and Dried 20' and 10' 3311 S U.S. Highway 77 A 2517' — 9068' Intervals Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 BOX INTERVALS: 2500'- 3900', 3900'- 5000', 5000'- 5900', 5900'- 6600', 6600'- 7400', 7400'- 8200', 8200' -9068' TD (7 Boxes Total) • El EPOCH 13 JA0 MARATHON OIL COMPANY BC 19 • 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 9/10/2008: Finish rig down operations at KBU 42- 7RD_CTF. Prepare for moving all Glacier No.1 components from the Kenai Gas Field to the Beaver Creek Field. Set liner and matting boards in place around well head at BC19. Begin moving trailer loads of equipment and supplies from KBU 42- 7RD_CTF and unloading at BC19. Move off forklifts, man -rider and mule in advance to position all arriving pieces. Rig down at KBU 42- 7RD_CTF, transport to BC19, organize, spot and set up all camp trailers while rig components are being moved and assembled. Move sub -base off 42- 7RD_CTF well head and lower. Move sub -base, pits, pump room, carrier, generator house, boiler house, water tank, parts house, mechanic shop, mud boat, Hanson tank and cuttings tank and smaller rig components to the Beaver Creek Field BC19 location. 9/11/2008: Organize, spot, position in place, rough -in connection points, draw together, and plug in all rig components. Set water tank, boiler house and generator house. Set sub -base and center over conductor. Set pit and pump units. Set mud boat. Set water tank house. Pull pump room and pit room buildings together. Flip carrier ramp. Fold wings down on sub -base and scope up. Level carrier. Install turnbuckles. Prep for and raise derrick. Install guard rails on top of boiler room, generator house, pit room and pump room. Begin pulling wires from generator to pits. Install pop -offs in pits. Run water line to the rig and camp. Fill water tanks. Begin spotting components for craning operations. Crane in derrick house, dog house, driller's side gray iron and fuel tank. 9/12/2008: Pick up, crane in and set in place pit side gray iron, fuel tank, panic line, flow line, gas buster, stairs from carrier on driller's side, back landings, V -door, wind walls, choke house, beaver slide, BOP conex , front wind walls and rig stairs and landings. Set and pin top landing and wind walls. Pull and plug in wires for dog house and choke house. Turn on interior lighting on rig floor. Raise gas buster. Stand mast. Crane up, set and pin back wind walls. Prep mast to scope up derrick. Scope up derrick. Secure guide lines. Rig up service lines. Set and secure beaver slide, catwalk and pipe racks. Spot and set Hanson tank, welding shop. parts house, mechanics shop, cuttings tank, M -I solids van and #3 pump module. Rig up mud manifold. Install all fluid and electrical lines to #3 mud pump. Rig up shock hoses to pumps. Install cylinder socks on derrick rams. Install and adjust turnbuckles. Install choke hose.. Charge all air and water lines around rig. Heat boiler up. Rig up brake linkage. Rig up, plug in and briefly function check driller's console and PLC. Rig and install degasser lines and sleeves. Run choke lines. Install lines between the pits room and the pump room. Install dresser sleeves for all mix and charge (centrifugal) pumps and pop -off lines that come off the high and low pressure feed lines between pumps #1 and #2. Straighten out all electrical cables originating from the bulkhead on the generator house. Put softener in place. Load and set trip tank in place. Install pump on outside of trip tank. Move in last set of trailers with 5" drill pipe. Begin unloading trailers and loading pipe racks with 5" drill pipe. Prep for rigging up torque tube. Pick up and install T -bar. Lay out, hang and bolt up torque tube. Fill pits with water and begin mixing spud mud. Receive fuel. Finish installing and testing all Gaitronics around rig and camp. Pick up and rig up Topdrive. Rig up and secure service loop for lines to Topdrive. Inspect Topdrive extentsion continental valve for leaks. Pump up hydraulic compensators. Change out saver sub on Topdrive to 4 1 /" IF and grabber dies to 5 ". Repair bolt hole in bell guide. Check crown -o- matic. Test carrier drive transmission. Finish mixing spud mud. Rig up all equipment on rig floor. Hang tongs and pipe spinner. Prep rig floor mud manifold. Drop 2" kill line and floor bleeders in place. Rig up bails and elevators. Change out elevator inserts to 5 ". Function test and make final adjustments on Topdrive and carrier. Test ESDs. Ralph Winkelman arrives at BC19 and rigs up EPOCH's external camp workstations, power to Unit 6, the Gaitronics communications, the Rigwatch 8.7 system, the gas system, the unit's computers and equipment, the analog outputs and the wireless network to camp. • El EPOCH 14 MARATHON OIL COMPANY BC 19 • 9/13/2008: Rig accepted by Marathon. Continue general pre -spud rig up operations. Prep and cut 20" conductor. Install 20" SLC by 21 1/4" 2M flanged starting head. Test head to 300psi for 10 minutes. Weld 2" valve for kill line on 20" conductor. Prep to nipple up diverter. Set 21 %" diverter stack in place. Nipple up all components of diverter system (21 1/4" 2M diverter, 16" diverter valve, 16" diverter line). Function test BOPs, diverter and diverter knife valve. Prime all three mud pumps and checked for leaks. Run and test all mix and charge pumps. Calibrate pit volume sensors. Test all gas alarms. Add on joint to diverter and do performance test on all components of diverter system. Drill 35' rat hole and install mouse hole. Finish general rig up operations and perform rig inspection. Hang back red tugger line. Complete rig audit. Pick up off racks, drift, make up and stand back 2528' (80 joints /40 stands) of 5" drill pipe. Pick up, drift, make up and stand back 21 joints (plus jars) /11 stands of 5" HWDP. Pick up and make up used 17 1/2" bit, bit sub and crossover. Make up to first stand of 5" HWDP and prepare to drill out conductor. Ralph Winkelman organizes and prepares Unit #6 for the start of logging, initializes Rigwatch for data acquisition and calibrates the gas system. Steve Forest arrives on location and rigs up and initializes the Starband Satellite system. Craig Silva arrives on location, runs the sensor lines to the M -I solids van and initializes the DML database for BC19. 9/14/2008: Drill out conductor from 32' to 106'. Spud Well when drilling out of conductor. Drill from 106' to 160'. Circulate bottoms up and circulate hole clean. Pull out of hole. Break and lay down bit, bit sub, crossover. Pick up and make up directional assembly. Run in hole with directional tools to 156'. Make up to first stand of 5" HWDP. Tag fill at 157'. Clean out fill from 157' to 160'. Drill from 160' to 183'. Flowline plugged off. Work on clearing out major restriction caused by large volume of gravel in flowline. Pump out and clean out mud (46 bbls) that had backflowed into and adjacent to cellar. Finish clearing flowline. Drill from 183' to 208'. Flowline plugged off second time. Clear out restriction caused by significant volume of gravel in flowline. Finish clearing flowline. Drill from 208' to 216'. Briefly clean minor third restriction caused by mixed gravel and sand in flowline. Drill with 5" HWDP from 216' to 815' • and with 5" drill pipe from 815' to 877'. 9/15/2008: Drill from 877' to 1507'. Pull out of hole 2 stands from 1507' to 1380'. Repair die - holder in Topdrive grabber box. Change out the Topdrive compensator cylinder on off - driller side. Finish work on Topdrive. Run back in hole 1 stand from 1380' to 1444'. Wash 2nd stand in from 1444' to 1507'. Drill from 1507' to 2394'. (Note 30 bbl Hi -Vis sweep started around at 2015', and approximately 200% increase in returns observed as sweep went over shakers). • El EPOCH 15 Ark) MARATHON OIL COMPANY BC 19 • 9/16/2008: Drill from 2394' to 2517'. Circulate while working last stand of pipe. Break connection and drop carbide. Begin circulating carbide around and observe Epoch Rigwatch system locked up and not recording strokes. Troubleshoot and restart Rigwatch system. Circulate and work pipe while waiting for system restart. Break connection again and drop second carbide. (Circulate approximately 6500 strokes total between first and second carbides). Continue pumping and working pipe. Circulate original cuttings bottoms up after starting second carbide. Continue to circulate hole clean. Circulate both carbides back with relatively low gas peaks (7 units and 6 units). Second carbide (acetylene) gas peak back at close to theoretical hole volume. Finish circulating. Pull out of hole from 2517' to 156' on wiper trip. Service rig. Run back in hole from 156' and tag restriction at 1826'. Kelly up and wash down from 1803' to 1887'. Continue running in hole from 1887' and tag restriction at 2027'. Kelly up and wash down from 2027' to 2077'. Continue running in hole from 2077' to 2457'. Wash down from 2457' to 2517'. Circulate bottoms up. Record 5 units of wiper gas. Pump and circulate around 30 bbl Hi -Vis sweep. Circulate hole clean. Pull out of hole from 2517' to 1636' on wiper trip. Run back in hole from 1636' to 2457'. Wash down from 2457' to 2517'. Circulate bottoms up. Record 3 units of wiper gas. Circulate, clean and condition hole. Pull out of hole with 5" drill pipe to 815'. Pull and stand back 5" HWDP and jars to 156'. Break and lay down 2 crossovers and shock sub. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Inspect all directional assembly connections when laying down. Lay down bit handling tools. Clear and clean rig floor. Prepare to run 13 3/8" surface casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to drillers side and install correct tong head. Install fill -up line. Install casing elevators. Rig up and test stabbing board. Rig up casing tongs and tall snub post. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick- up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up EZ- turn valve onto casing swage for safety valve and function check (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 3/8" shoe track (shoe • joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing. 9/17/2008: Continue running in 13 3/8" casing as per Marathon and land at 2510' (float collar at 2464'). Note slick run with no fill on bottom. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary to run 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub to top of float collar at 2464'. Rig up cementing line. Tag and sting into float collar and space out. Circulate and condition hole. Record 1 unit of trip gas. Pump 380 bbls of mud to Hanson Tank prior to cementing. Build 40 bbl SAPP spacer. Rig up cementing lines. Hold pre -job meeting with BJ cementers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 3.0 bbls of water to fill cement lines. Observe leak at valve on rig floor. Change out valve. Pump additional 0.5 bbls of water to refill cement lines and pressure test to 2554psi. Bleed off pressure. Batch cement to 12.0ppg. Pump 337.0 bbls of 12.0ppg cement slurry (762 sacks Type I LW -6 cement and accelerator additives to 187.40 bbls of mix water for 10.33 gal water /sack and yield of 2.48 cu ft per sack). Pump cement slurry and then follow with 37.4 bbls of 9.6ppg mud to displace. Bleed off pressure. Check floats. Cement in place. No losses during pumping with good excess cement returns to surface. Cement returns treated with citric acid retarder. Flush cementing head and lines and rig down BJ. Unsting from float collar. Float holding. Pull one stand to 2404' and rig up to pump ball down pipe. Pump wiper ball down to clear drill pipe of residual cement. Treat all mud returns for traces of cement product. Dump returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole with 5" drill pipe from 2404'. Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Change out alternator belt on #2 carrier engine. Flush and drain 20" by 13 3/8" annulus, flowline and mud lines. Pull plate. Clear and clean rig floor and cellar. Wait on cement. Prep diverter for nipple down. Pump out and haul off spud mud and begin cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect turnbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, kill line, 2" valve, actuator and scaffolding. Remove and lay down mousehole. Change out HCR valve on stack. Make rough cut on 13 3/8" casing and lay down stub section (26.50'). El EPOCH 16 MARATHON OIL COMPANY BC 19 9/18/2008: Rig up drill pipe elevators. Pick up stackwasher. Using the rig pump, thoroughly wash and flush diverter stack inside and out to remove residual cement. Finish nippling down the last components of the diverter system. Move the diverter stack out of the cellar and mount on stand. Begin loading 5" drill pipe for next hole section on pipe racks. Remove and load off 21 1/4" sliplock starter head. Cut 20" conductor. Make final cut on 13 3/8" casing and then dress out. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Test wellhead to 1600psi for 10 minutes. Set spool and HCR on stack. Set stack and continue nipple up of 13 5/8" 5M BOPE. Repair test pump hydraulics. Service Topdrive and carrier. Strap 5" drill pipe on racks. Finish cleaning pits and begin mixing new Flo -Pro mud. Work on Epoch RPM sensor. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Begin testing BOPE to 250psi Low / 5000psi High for 10 minutes. 9/19/2008: Test all BOPE to 250psi Low / 3500psi High for 10 minutes (annular, upper pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). Perform accumulator drawdown test. Test all gas alarms. Observed leak on #12 CMV, repaired leak and retested. Observed leak on outside kill line valve, function tested valve and retested. Observed leak on Graylock on choke line, tightened up and retested. Rig down test equipment. Pull test plug. Install wear ring. Rig up test equipment and test 13 3/8" casing to 1500psi for 30 minutes. Rig down test equipment. Install elevators. Pick up and prepare pipe handling tools on rig floor. Pick up, rabbit, drift, make up, run in hole, pull out standing back in the derrick and strap 90 joints total (45 stands) of pre- staged 5" drill pipe off the pipe racks. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM stabilizer, pony NMDC, MWD). Orient MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, crossover). Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 797'. Test MWD pulse signal. Strap, pick up, rabbit, drift, make up, run in hole 52 more joints (26 stands) of pre - staged and prepped 5" drill pipe off the pipe racks to 2437'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Briefly circulate and condition mud. Wash down with pipe out of derrick from • 2437' and tag cement at 2459'. Drill cement from 2459' and tag float collar at 2464'. Drill out float equipment and remaining shoe tract (cement, shoe at 2510', rathole) to 2517'. Drill 20' of new hole from 2517' to 2537'. Circulate bottoms up. Pump mud over to Hanson tanks with charge pumps to make room for displacement. 9/20/2008: Pump 30 bbls of water to act as a spacer, follow with a 30 bbl Hi -Vis sweep and then displace the old 9.6ppg Spud Mud with 360 bbls of new 8.9ppg Flo -Pro mud. Shut down pumps and perform Formation Integrity Test to 12.0ppg EMW. Drill ahead (rotating and sliding) from 2537' to 3856'. 9/21/2008: Drill (rotating and sliding) from 3856' to 4140'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole from 4140' to 2437' on wiper trip. Service rig. Shim Topdrive slide. Run back in hole from 2437' to 4077'. Wash down from 4077' to 4140' with no fill. Drill (rotating and sliding) from 4140' to 4962'. Circulate bottoms up. Circulate, clean and condition hole while building volume and starting prodedures to slow down mud losses. Pump LCM pill. 9/22/2008: Finish pumping LCM (Mix II) pill. Drill ahead (rotating and sliding) from 4962' to 5404'. Circulate bottoms up at connection due to sustained high gas over 250 units. Record 282 units maximum gas. Circulate gas down. Drill ahead (rotating and sliding) from 5404' to 5597'. Circulate at reduced pump rate (196gpm) while working on shaker problem. Pull and rack back 1 stand to 5529' to continue troubleshooting shake problem. Correct problem with shaker. Wash back in hole from 5529' to 5597'. Drill (rotating and sliding) from 5597' to 5845'. Circulate bottoms up and continue to circulate hole clean. Check for flow. Pull out of hole from 5845' to 2437' on wiper trip to shoe. Service rig, Topdrive and pipe spinner. Grease blocks and crown. Prep to run back in hole. 9/23/2008: Run back in from 2437' to 5782'. Wash down from 5782' to 5845'. Drill (rotating and sliding) from 5845' to 6661'. 9/24/2008: Drill (rotating and sliding) from 6661' to 7251'. • EI EPOCH 17 n j411 MARATHON OIL COMPANY BC 19 • 9/25/2008: Drill (rotating and sliding) from 7251' to 7462'. Circulate bottoms up and continue to circulate and condition mud. Hold weekly safety meeting with both crews while driller circulates and conditions. Circulate hole clean. Check for flow. Spot 40 bbl LCM pill on bottom. Pull out of hole from 7462' to 2500' on wiper trip to shoe. Work through numerous tight spots on way out (at 7153', 7122', 6876', 6833', 6683', 6632', 6610', 6558', 6510', 6499', 6431', 6231', 6253', 6245', 6240', 6204', 6170', 6100', 6080', 6044', 6026', 6016', 6001', 5992', 5980', 5970', 5914', 5911', 5868'). Slip and cut 33' of drill line. Adjust brakes. Set and check crown -o- matic. Service rig and Topdrive. Run back in hole from 2500' (to 3824). 9/26/2008: Continue running back in hole (from 3824') and tag restriction at 5815'. Kelly up and ream down from 5815' to 5855'. Continue running in hole from 5855' and tag restriction at 6554'. Kelly up and ream down from 6554' to 6594'. Continue running in hole from 6594' to 7398'. Kelly up and ream and wash down from 7398' to bottom at 7462'. Circulate bottoms up and record 36 units of wiper gas. Circulate hole clean. Pull out of hole from 7462' to 5782' on wiper trip. Do flow check at 5782'. Observe 2 -3bph static losses. Run back in hole from 5782' to 7428'. Wash down from 7428' to 7462'. Ream through slight ledge at 7447' and clean out 2' of fill on bottom. Begin circulating bottoms up. Lay down single to work one full stand of pipe. Continue to circulate bottoms up and record 5 units of wiper gas. Circulate, clean and condition hole. Check for flow. Pump 40bbI dry job. Drop rabbit. Pull out of hole (SLM) with 5" drill pipe to 797'. Pull and stand back 5" HWDP and jars to top of directional tools at 137'. Break and lay down crossover. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Clear and clean rig floor. Blow down mud lines. Hold pre -job meeting with Weatherford Wireline Services on procedures and safety for rigging up and running wireline logs. Rig up Weatherford's wireline running equipment. Pick up, strap, rabbit and install lubricator. Pick up and make up WWS Quad -Combo logging tool assembly. Load sources. Run logging assembly in hole to apparent ledge at 7450'. Log up from 7450' to 7000'. Run back to bottom for repeat section, get past ledge at 7450' and tag apparent fill at 7457'. Log up from 7457' with Quad -Combo logging assembly. 9/27/2008: Log up with Weatherford Wireline Services' Quad -Combo logging assembly from 7456' • (logger's depth) to 2510'. Pull out of hole with logging assembly. Remove sources. Rig down and lay down logging tools, lubricator and wireline running equipment. Clean rig floor. Pick up and make up short clean out assembly (bit, bit sub and crossover) to first stand of HWDP. Run in hole 5" HWDP (plus jars) to 665'. Continue running in hole with 5" drill pipe from 665' to 2495' (just inside shoe). Fill pipe. Continue running in hole with 5" drill pipe from 2495' to 5082'. Fill pipe. Continue running in hole with 5" drill pipe from 5082' to 7425'. Wash down from 7425' and tag ledge at 7428'. Ream through ledge and continue washing down to bottom at 7462'. Circulate while working pipe. Circulate bottoms up. Record 12 units of trip gas. Continue to circulate, clean and condition hole. Check for flow. Spot 50 bbl 9.7ppg LCM pill on bottom (and up annulus to estimated 4400'). Pump 30 bbl 10.6ppg dry job. Pull out of hole with 5" drill pipe and 5" HWDP (plus jars). Break down and lay down crossover, bit sub and bit. Clear and clean rig floor. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Install Lafleur fill -up tool. Move breakout tongs to driller's side and install correct tong head. Prep to make gauge run with 9 5/8" casing hanger. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger. Mark elevation on landing joint. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run in test plug. Pick up, make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 3500psi High for 5 minutes. Rig down test equipment. Pull test plug. Rig up and function stabbing board. • El EPOCH 18 t MARATHON OIL COMPANY BC 19 • 9/28/2008: New rig crew notices that incorrectly sized (7 ") casing rams were installed. Change out 7" rams with the correct 9 5/8" rams. Rerun, reinstall and reset plug, test pipe and pressure test equipment. Test 9 5/8" casing rams to 250psi Low / 3500psi High for 5 minutes. Rig down test equipment and pull test plug. Move torque tube back in derrick for clearance. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie red tugger line back in derrick for picking up pipe, and blue tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running intermediate casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar) and run in hole to 117'. Circulate casing volume through shoe track and check float equipment. Note that position of pitcher nipple dropped down and to the side as casing was being moved past and there was a space between the pitcher and and flowline nipples. It appeared the original riser joint was not seated in the annular properly (set on the bladder and not all the way down), so when it was knocked down to the proper metal to metal contact, a 2" gap was created. Set casing in slips with dog collar and retie tugger lines. Pull and change out pitcher nipples, sliding them over and down the Bakerloked shoe tract joints. Reseat the longer pitcher nipple section and nipple up to flowline. Pump and test for leaking fluid (contacts are correctly sealed). Continue running 9 5/8" casing as per Marathon. Attach centralizers as per tally and fill each joint on way in. Run casing from 117' to 2504'. Break circulation and fill pipe. Record 2 units maximum gas. Continue running in 9 5/8" casing from 2504' to 7418'. Break circulation and wash down to landing depth of 7424'. Record 4 units maximum gas. Land hanger on load shoulder in multi -bowl wellhead (at 7424.35'). Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Circulate and condition mud prior to cement job. Circulate bottoms up and record 6 units of trip gas. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. 9/29/2008: Batch mix 204 bbls of 10.5ppg lead cement. Finish circulating with rig pumps. Blow air • through cement valves and lines to clear. Switch to BJ pumping unit. Pump 2.70 bbls of water and pressure test lines to 2566psi. Bleed off and line out to pump spacer. Begin mixing and pumping 20.1 bbls of 10.0ppg SealBond spacer. Finish pumping spacer and shut down. Open up bottom valve and drop first (bottom) plug. Pump 204.0 bbls of pre -mixed 10.5ppg lead cement slurry (345 sacks of Class G cement plus accelerator chemicals mixed with 103.60 bbls water to batch -up at 12.61 gal /sk and yield of 3.32 cu- ft/sk) and follow with 34.0 bbls of batched in 15.8ppg tail cement slurry (160 sacks of Class G cement plus accelerator chemicals mixed with 18.93 bbls water to batch -up at 4.97 gal /sk and yield of 1.18 cu- ft/sk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 3.50 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 557.00 bbls (11874 strokes) of mud (and 562.99 bbls total displacement). Bump plug with 610psi over - pressure (1095psi total pressure). Bleed off. Check floats. Cement in place. Note 15.0 bbls of mud lost during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Remove casing elevators, long bails and pick up sling line. Install short bails. Remove and lay down Lafleur fill -up tool. Install drill pipe elevators. Move hanging sheave for breakout tongs to driller's side and install correct tong head. Pull and lay down casing spider slips. Load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Rig down and fold up stabbing board. Realign torque tube. Clear and clean rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test pack -off. Test failed. Pull pack -off and change split rings and inner seals. Run back in, energize seals and attempt retest. Test failed. Pull and uninstall packoff. Make up new 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test pack -off. Test failed. Pull second packoff and change split rings and inner seals. Run back in, energize seals and successfully test packoff to 5000psi for 10 minutes. Close blind rams. Change out upper 9 5/8" casing rams to 2 7/8" by 5 1/2" variable pipe rams. Clean rig floor. Run in test plug. Rig up test equipment. Test annular preventer ( #1) to 250psi Low /3500psi High for 30 minutes. Begin testing all remaining BOPE. Observe leaking check valve on first test. Stop test. Clean out valve and successfully retest. Test all other BOPE to 250psi Low /3500psi High for 30 minutes ( ( #2) upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12; ( #3) floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9; (#4) inside kill valve, CMVs 2 -5 -7; ( #5) HCR; (#6) manual choke). 411/ Li EPOCH 19 M MARATHON OIL COMPANY BC 19 • 9/30/2008: Test last BOPE to 250psi Low /3500psi High for 30 minutes ( ( #7) CMVs 3 -4, blind rams). Perform accumulator drawdown test. Test gas alarms. Rig down test equipment. Pull test plug. Install wear bushing. Service rig. Test 9 5/8" casing to 1750psi for 30 minutes. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM string stabilizer, pony NMDC, MWD). Orient and scribe MWD tools. Dress monel threads. Make up and run in hole upper directional tools (2 NMCSDP flex joints, steel crossover). Make up crossover to first stand of HWDP. Run in hole with HWDP and jars to 797'. Test MWD pulse signal. Strap, pick up, rabbit, drift, make up, run in hole 48 more joints (24 stands) of pre- staged and prepped 5" drill pipe off the pipe racks to 2309'. Briefly circulate and condition mud. Install corrosion ring as per procedure. Run in hole with pipe out of derrick from 2309' to 7233'. Fill pipe. Troubleshoot #1 transmission shifter (transmission not shifting out of 3rd gear). Clear CPU defaults and work on transmission. Successfully correct transmission problem. Continue running in hole from 7233' and tag float collar at 7367'. Drill out float equipment and remaining shoe tract (cement, shoe at 7447', rathole) to 7462'. Drill 22' of new hole from 7462' to 7484'. Circulate bottoms up. Perform Formation Integrity Test (9.6ppg, 880psi, 7094tvd) to 12.0ppg EMW. Drill from 7484' to 8056'. 10/01/2008: Drill from 8056' to 9068'. Circulate bottoms up. Pump around Hi -Vis sweep. Circulate, clean and condition hole. Pump survey. Check for flow. Pull out of hole from 9068' to 7420' on wiper trip to shoe. Hole first pulls tight at 8968' and continues to pull tight at 23 more spots to 8014'. Kelly up and backream the rest of the way out from 8014' to 7420' (just inside shoe). Service rig and Topdrive. Grease crown. Run back in hole (slick) from 7420' to 9005'. Break circulation and wash from 9005' to bottom 9068'. Circulate bottoms up. Record 212 units of wiper gas. 10/02/2008: Build and start pumping around 29 bbl Hi -Vis sweep while circulating bottoms up. Circulate sweep around and continue to circulate, clean and condition hole. Pull out of hole from 9068' to 7420' (SLM). Pump dry job. Drop rabbit. Continue pulling out of hole from 7420' to 797'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (11 stands) to 137'. Pull, lay down and load off all directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, motor, • bit). Grade bit. Clear and clean rig floor. Lay down handling tools. Hold pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up wireline running equipment. Pick up, make up and run in hole Weatherford's Quad -Combo logging assembly. Load sources for neutron tools. Run in hole to 9015' (53' from bottom). Log up from with WWS Quad -Combo assembly from 9015' to 7446'. Pull wireline assembly out of hole. Unload sources. Break and lay down logging tools. Rig down WWS surface running equipment. Cut (153') and slip (120') of drilling line. Set and check crown -o- matic. Inspect brake and linkage. Hold second pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Re -rig up Weatherford's wireline running equipment. Pick up, make up and run in hole with MFT logging assembly to 7400' (inside casing). Wait at 7400' until Marathon geology has determined the pressure points to be evaluated in the open hole section. Receive list of pressure points and logging instructions. Run in from 7400' with MFT logging assembly and take pressure points in both directions between 8889' to 8590'. Experience low pressure point success rate in all intervals attempted. Pull logging assembly back up into casing and function test MFT tool. Tool performs correctly inside casing. Run in to open hole to attempt more pressure points. 10/03/2008: Attempt pressure points between 8679' and 8695' with zero success rate (tool would not seal to side of hole). Pull logging assembly out of hole to clean logging tool. Note no detectable problems with the tool. Run back in with MFT logging assembly and take pressure points in both directions between 7579' and 8177'. Tool is briefly successful, but no success with latter testing. All points either failed to seal or were tight. Pull logging assembly out of hole. Inspect, break and lay down logging tools on catwalk. Replace first MFT tool with a back -up tool that has a smaller size test pad. Pick up, make up and run back in hole with MFT logging assembly. Replacement MFT tool tested ok inside casing, and once down in open hole was able to achieve repeat tests with "normal" success parameters. Take pressure points between 8692' and 7595' in both downward and upward directions in a predetermined order. Pull out of hole with MFT logging assembly. Break down and lay down logging tools. Rig down Weatherford Wireline Services sheaves, safety valve, lubricator and surface running equipment. Clear and clean rig floor. Pick up and make up bit, bit sub and crossover to first stand of HWDP. Run in hole with 5" HWDP (plus jars) to 663', and with 5" drill pipe from 663' (to 1228'). • Ell EPOCH 20 MARATHON OIL COMPANY BC 19 • 10/04/2008: Continue running in hole on clean out run from 1228' to 8934'. Wash down from 8934' to bottom at 9068'. Circulate bottoms up. Record 104 units of trip gas. Circulate, clean and condition hole. Check for flow. Pump dry job. Blow down mud lines and flush mud pumps. Pull out of hole (25 stands) from 9068' to 7416'. Pull out of hole laying down 5" drill pipe from 7416' to 915'. Run back in hole with all drill pipe remaining in derrick (27 stands) from 915' to 2687'. Pull out of hole laying down 5" drill pipe from 2687' to 663'. Pull out of hole to surface laying down 5" HWDP and jars. Break and lay down clean out assembly (crossover, bit sub, bit). Pull wear bushing. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, rotary tools, spinners, and tongs. Clear and clean rig floor. Prepare for highline operations running in EXCAPE production modules and tubing. Pull wear ring. Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install fill -up tool. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull down to floor and tie off the 3 control lines and a protector dummy line. Rig up Pollard Wireline Service to perform banding of control lines. Inspect and insure that previously staged out modules are in correct order on short pipe rack. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. Begin running in hole with 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract with Davis Lynch Float Shoe and Float Collar. Check floats. Carefully pick up, make up and continue running in hole the lowermost 3 1/2" completion section with 2 EXCAPE modules (plus 3 pups) to 512'. 10/05/2008: Continue running in hole with EXCAPE completion string. Carefully pick up, make up and run in hole the remaining 3 1/2" completion section with 5 more EXCAPE modules (7 modules total plus 9 pups and a flapper removal tool) to 1531'. Briefly circulate and fill pipe. (Note inhibitor was slowly increased in the mud system in the 48 hours before cementing commenced). Continue running 3 1/2" EXCAPE completion string in hole from 1531' to 9042'. Rig up circulating head and line. Begin circulating, bringing pumps up slowly. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Circulate 3745 strokes (at 725psi, 100spm, 200gpm) Stop pumping and check for flow. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine perforating positions of EXCAPE modules. Log up and pull out of hole with wireline gamma tool assembly. Do correlation determination with gamma log. Note that the the shoe will be adjusted down 13.50' to 9051.69'. Rig down Expro WLS. Rig up circulating line and head. Resume circulating (at 750psi, 105spm, 210gpm). Hold pre -job safety meeting with BJ on cementing procedures and safety for cement job. Circulate 4076 more strokes. Rig down circulating head. Rig up cementing head and line up to BJ cementers. Head will have plug installed and a wash -up tee. Pump 3.0 bbls of water to fill lines. Pressure test cementing lines to 3500psi. Mix and pump 40.0 bbls of 10.6ppg Sealbond Spacer, using 37.12 bbls of water. After sweep, pump 168 bbls of 15.8ppg cement slurry (802 sacks of Class G cement plus accelerator chemicals mixed with 95.0 bbls water to yield 4.975 gal /sk and 1.176 cuft/sk). Close valve to head and open wash -up valve. Pump 8 bbls water to wash lines from floor out to slop tank until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 2.0 bbs of KCL brine. Displace cement with 76.0 bbls of 6% KCI brine. (Total displacement is 78.0. bbls). Record maximum 25 units of gas while displacing. Bump plug with 1000psi over displacement pressure (2400psi total). No returns to surface. Bleed off. Check floats. Cement in place at 22:45 hours. Begin waiting on cement. Flush, blow down and rig down cementing head and lines. Lay down cementing head. Clear and clean rig floor. • Ell EPOCH 21 I'i /(4 MARATHON OIL COMPANY BC 19 10/06/2008: Flush and blow down all mud pumps and pump lines, choke and choke lines, mud manifold and all mud lines, and fill and trip lines. Flush and washout stack. Pump out and clean trip tank. Begin nipple down of riser, choke, and kill lines. Prepare stack for nipple down. Start pumping mud and other fluids out to vac trucks for haul -off. Rig down #3 mud pump. Begin loading up trailers and hauling non- essential equipment off to Kenai Gas Field. Begin cleaning pits. Lay down mousehole. Remove and load off drip pan. Begin loading out pipe and pipe racks. Continue partial rig -down procedures and loading off and transporting of non - critical rig and third party equipment and facilities. Clean up location as transport loads are hauled away. Rig down flow nipple, riser, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Rig up bridge cranes to BOP stack. Rig down standpipe manifold. Pick up BOP stack. Finish cleaning all pits and hauling off remaining fluids. Run control and electric lines out tubing head outlet. Set weight on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 3 1/2" casing. Run control lines through 3 1/2" packoff and terminate. Set and install packoff. Install Swagelok fittings around control lines. Run in lock -down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3 1/8" 5M tubing head adaptor to the 3 1/8" 5M tree, terminating control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Begin rig down and move of all Glacier No.1 rig modules, rig equipment, support trailers, communication equipment, camp trailers and camp accessory equipment to the KU 22 -6X location. Craig Silva rigs down the Rigwatch 8.7 system, the gas system, the Unit 6 computers and equipment, all external camp workstations, the wireless network to camp, the Starband Satellite system, the Gaitronics communications and unit power. Unit #6 is organized and secured for moving to KU 22 -6X. 10/07/2008 to 10/08/2008: Continued rig down operations at BC 19 for move to KU 22 -6X. • • El EPOCH 22 • • • M MARATHON OIL COMPANY BC 19 4.2. SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth N/S ( -) ( +) E/W ( -) Azimuth (ft ) (deg) (deg) (ft) (ft ) (ft) (ft) (ft ) (deg) ( deg /100ft) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 214 0.98 53.06 213.99 -1.52 1.10 1.46 1.83 53.06 0.46 334 0.98 58.69 333.97 -3.17 2.25 3.16 3.88 54.55 0.08 454 1.07 58.08 453.95 -4.83 3.38 4.99 6.02 55.91 0.08 574 1.22 60.35 573.93 -6.67 4.60 7.05 8.42 56.87 0.13 694 1.58 62.17 693.89 -8.85 6.00 9.62 11.34 58.04 0.30 817 1.30 64.17 816.85 -11.08 7.40 12.38 14.42 59.11 0.23 944 1.23 69.95 943.82 -12.96 8.50 14.95 17.20 60.39 0.11 1070 1.42 68.34 1069.79 -14.84 9.54 17.68 20.09 61.65 0.15 1196 1.51 67.70 1195.75 -16.97 10.74 20.66 23.29 62.53 0.07 1322 1.66 71.53 1321.70 -19.19 11.95 23.93 26.75 63.46 0.15 1448 1.61 69.52 1447.65 -21.44 13.15 27.32 30.32 64.30 0.06 1574 1.63 68.07 1573.60 -23.75 14.44 30.64 33.87 64.77 0.04 1701 1.79 69.27 1700.54 -26.21 15.82 34.17 37.65 65.16 0.13 1828 1.66 67.24 1827.48 -28.72 17.23 37.72 41.47 65.45 0.11 1955 1.66 69.76 1954.43 -31.12 18.58 41.14 45.14 65.70 0.06 2081 1.48 63.75 2080.38 -33.45 19.93 44.32 48.59 65.79 0.19 2207 1.61 57.78 2206.34 -35.99 21.59 47.27 51.97 65.45 0.16 2334 1.68 65.27 2333.28 -38.68 23.32 50.47 55.60 65.20 0.18 2457 1.52 56.80 2456.24 -41.23 24.97 53.48 59.02 64.97 0.23 2567 1.94 60.23 2566.19 -43.79 26.69 56.31 62.32 64.64 0.39 2630 1.58 76.70 2629.16 -45.07 27.42 58.08 64.23 64.73 0.98 2693 1.11 132.65 2692.14 -45.29 27.21 59.38 65.31 65.38 2.11 2756 1.15 157.01 2755.13 -44.58 26.21 60.07 65.54 66.43 0.76 2820 1.08 161.80 2819.12 -43.63 25.05 60.51 65.49 67.51 0.18 2883 1.87 179.03 2882.10 -42.19 23.46 60.72 65.09 68.88 1.42 El EPOCH 23 0 • • dD MARATHON OIL COMPANY BC 19 Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Coordinate Coordinate Closure DLS Depth Section ( +) N/S ( -) ( +) E/W ( -) Azimuth (ft ) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) ( deg /100 ft) 2945 2.90 180.20 2944.04 -39.76 20.88 60.73 64.22 71.03 1.66 3009 3.71 190.16 3007.94 -36.19 17.22 60.36 62.76 74.08 1.55 3072 4.64 189.90 3070.77 -31.66 12.70 59.56 60.90 77.96 1.48 3135 5.16 188.55 3133.54 -26.36 7.39 58.70 59.16 82.82 0.85 3197 6.19 193.58 3195.23 -20.30 1.39 57.50 57.52 88.62 1.84 3261 7.71 196.97 3258.76 -12.58 -6.08 55.44 55.77 96.25 2.46 3323 9.13 202.47 3320.09 -3.51 -14.60 52.34 54.34 105.58 2.63 3386 10.78 205.12 3382.14 7.34 -24.55 47.93 53.85 117.12 2.72 3450 12.63 207.28 3444.81 20.23 -36.19 42.18 55.58 130.63 2.97 3512 14.98 208.09 3505.01 34.86 -49.29 35.30 60.63 144.39 3.80 3576 17.25 209.52 3566.49 52.38 -64.84 26.73 70.14 157.60 3.60 3639 19.20 209.30 3626.33 71.77 -82.01 17.06 83.76 168.25 3.10 3701 20.60 208.49 3684.63 92.58 - 100.49 6.86 100.72 176.09 2.30 3764 22.73 208.68 3743.17 115.53 - 120.91 -4.26 120.98 182.02 3.38 3828 24.94 208.36 3801.71 141.06 - 143.63 -16.61 144.59 186.60 3.46 3892 26.32 209.06 3859.41 168.37 - 167.91 -29.91 170.55 190.10 2.21 3954 27.48 209.28 3914.70 196.00 - 192.40 -43.58 197.28 192.76 1.88 4018 29.10 206.91 3971.06 225.97 - 219.16 -57.85 226.67 194.79 3.08 4081 30.17 205.84 4025.82 256.88 - 247.07 -71.69 257.26 196.18 1.89 4144 31.26 204.02 4079.98 288.90 - 276.25 -85.24 289.10 197.15 2.27 4208 31.58 203.63 4134.60 322.16 - 306.77 -98.72 322.26 197.84 0.59 4271 31.79 203.99 4188.21 355.15 - 337.05 - 112.08 355.19 198.39 0.45 4334 31.97 203.62 4241.70 388.32 - 367.49 - 125.50 388.33 198.86 0.42 4397 32.04 204.81 4295.13 421.58 - 397.94 - 139.20 421.58 199.28 1.01 4459 31.55 203.58 4347.83 454.13 - 427.73 - 152.59 454.14 199.63 1.31 4523 31.17 203.86 4402.48 487.33 - 458.23 - 165.99 487.36 199.91 0.64 4650 30.99 202.47 4511.25 552.74 - 518.50 - 191.78 552.83 200.30 0.58 4776 31.31 201.79 4619.08 617.84 - 578.87 - 216.33 617.97 200.49 0.38 4902 30.95 202.51 4726.93 682.89 - 639.20 - 240.89 683.09 200.65 0.41 El EPOCH 24 • • 0 Q MARATHON OIL COMPANY BC 19 Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section ( +) N/S ( -) ( +) E/W ( -) Azimuth (ft ) (deg) (deg) (ft ) (ft ) (ft) (ft) (ft ) (deg) ( deg /100ft) 5028 31.34 201.38 4834.77 747.99 - 699.65 - 265.24 748.24 200.76 0.56 5154 31.34 202.11 4942.39 813.46 - 760.52 - 289.51 813.76 200.84 0.30 5281 31.31 202.32 5050.88 879.40 - 821.64 - 314.48 879.77 200.94 0.09 5407 31.98 202.40 5158.14 945.41 - 882.78 - 339.63 945.86 201.04 0.53 5533 32.68 201.73 5264.61 1012.72 - 945.23 - 364.94 1013.23 201.11 0.62 5659 31.52 201.41 5371.35 1079.62 - 1007.49 - 389.55 1080.18 201.14 0.93 5785 30.52 202.16 5479.33 1144.49 - 1067.79 - 413.65 1145.11 201.18 0.85 5848 30.23 201.46 5533.68 1176.31 - 1097.37 - 425.48 1176.96 201.19 0.73 5911 29.24 202.54 5588.38 1207.52 - 1126.34 - 437.18 1208.21 201.21 1.79 5975 28.30 202.42 5644.48 1238.28 - 1154.80 - 448.96 1239.00 201.25 1.47 6038 27.12 202.85 5700.26 1267.52 - 1181.84 - 460.23 1268.29 201.28 1.90 6101 25.72 201.93 5756.67 1295.51 - 1207.75 - 470.92 1296.31 201.30 2.32 6164 24.56 201.77 5813.71 1322.25 - 1232.59 - 480.88 1323.08 201.31 1.84 6228 23.30 200.13 5872.20 1348.19 - 1256.83 - 490.17 1349.03 201.31 2.23 6291 22.19 199.06 5930.30 1372.55 - 1279.78 - 498.34 1373.38 201.28 1.88 6355 21.21 199.26 5989.77 1396.21 - 1302.13 - 506.11 1397.03 201.24 1.54 6418 20.41 199.33 6048.66 1418.60 - 1323.25 - 513.50 1419.39 201.21 1.27 6481 19.40 198.98 6107.89 1440.04 - 1343.51 - 520.54 1440.83 201.18 1.61 6544 18.30 198.84 6167.51 1460.40 - 1362.77 - 527.14 1461.17 201.15 1.75 6608 16.71 198.73 6228.55 1479.65 - 1380.99 - 533.34 1480.40 201.12 2.48 6671 15.19 198.48 6289.12 1496.96 - 1397.40 - 538.86 1497.70 201.09 2.42 6734 13.47 199.06 6350.16 1512.55 - 1412.16 - 543.87 1513.28 201.06 2.74 6798 12.01 197.87 6412.58 1526.66 - 1425.55 - 548.35 1527.38 201.04 2.32 6861 10.55 199.14 6474.36 1538.98 - 1437.24 - 552.25 1539.69 201.02 2.35 6925 9.36 200.22 6537.40 1550.04 - 1447.65 - 555.97 1550.75 201.01 1.88 6988 8.10 201.02 6599.67 1559.60 - 1456.61 - 559.34 1560.31 201.01 2.01 7052 6.97 202.44 6663.11 1567.99 - 1464.40 - 562.44 1568.70 201.01 1.79 7115 5.92 200.98 6725.71 1575.05 - 1470.97 - 565.06 1575.77 201.01 1.69 7178 4.93 203.56 6788.43 1581.00 - 1476.49 - 567.30 1581.72 201.02 1.62 El EPOCH 25 i • • • MARATHON OIL COMPANY BC 19 Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth ( +) N/S ( -) ( +) ENV ( -) (ft) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft) (deg) ( deg /100ft) 7242 3.39 201.83 6852.26 1585.63 - 1480.76 - 569.11 1586.36 201.02 2.41 7305 1.64 206.91 6915.20 1588.39 - 1483.30 - 570.21 1589.12 201.03 2.80 7368 0.98 193.77 6978.18 1589.82 - 1484.62 - 570.74 1590.55 201.03 1.14 7494 0.60 184.44 7104.17 1591.53 - 1486.33 - 571.05 1592.25 201.02 0.32 7683 0.62 163.41 7293.16 1593.31 - 1488.29 - 570.84 1594.01 200.98 0.12 7874 0.79 157.10 7484.14 1595.13 - 1490.50 - 570.03 1595.78 200.93 0.10 8063 0.78 138.00 7673.13 1596.71 - 1492.65 - 568.66 1597.31 200.86 0.14 8253 0.89 145.09 7863.10 1598.19 - 1494.83 - 566.95 1598.73 200.77 0.08 8443 0.84 135.65 8053.08 1599.67 - 1497.03 - 565.13 1600.15 200.68 0.08 8634 1.15 122.83 8244.05 1600.75 - 1499.07 - 562.54 1601.15 200.57 0.20 8824 0.91 129.62 8434.02 1601.72 - 1501.07 - 559.78 1602.05 200.45 0.14 9014 1.22 124.78 8623.99 1602.78 - 1503.18 - 556.96 1603.05 200.33 0.17 * *9068.. 1.22 124.78 8677.98 1603.09 - 1503.84 - 556.01 1603.33 200.29 0.00 * *Projection El EPOCH 26 • • • MARATHON OIL COMPANY BC 19 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: Spud Mud 100' - 2537'; 6% KCI Flo -Pro 2537' - xxxx DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ 9/13/08 100 / 100 8.7 57 18 18 6/14/15 13.8 1 3 /97 25.0 8.9 0.25 700 30 9/14/08 240 / 240 8.9 110 11 49 37/40/ 16.4 2 4.5 /96 .33 22.5 8.7 0.20 600 40 9/14/08 800 / 800 9.0 77 12 40 27/33/ 16.0 2 5 /95 .33 22.5 8.4 0.10 500 40 9/15/08 1507 / 1507 9.1 68 15 34 20/32/ 13.6 2 5 /95 .33 22.5 8.3 400 40 9/15/08 2250 / 2250 9.6 66 17 22 10/27/ 8.0 2 8.5 /92 .15 17.5 8.8 0.05 550 120 9/16/08 2517 / 2517 9.6 83 22 26 12/27/31 10.5 2 8.5 /92 Tr 23.0 8.9 0.10 650 120 9/17/08 2517 / 2517 9.6 83 22 26 12/27/31 10.5 2 8.5 /92 Tr 23.0 8.9 0.10 650 120 9/18/08 2517 / 2517 9.6 83 22 26 12/27/31 10.5 2 8.5 /92 Tr 23.0 8.9 0.10 650 120 9/19/08 2537 / 2537 8.9 47 8 15 8/11/13 7.5 1 2 3/95 2.0 8.9 0.20 31500 160 9/20/08 3000 / 2999 9.0 52 10 14 9/11/ 6.8 1 2 3/95 Tr 2.0 8.9 0.10 31750 280 9/20/08 3650 / 3647 9.1 49 11 20 12/15/ 6.2 1 3 3/94 Tr 2.5 9.4 0.15 30500 280 9/21/08 4700 / 4554 9.4 49 12 22 13/17/ 6.0 1 8 3/89 .10 5.5 9.4 0.15 31000 240 9/22/08 5475 / 5216 9.4 50 10 26 11/15/17 6.4 1 5 2/93 Tr 7.5 8.8 0.05 31000 280 9/22/08 5845 / 5531 9.4 45 11 17 9/12/ 6.8 1 5.5 2/93 Tr 7.5 9.5 0.20 31000 240 9/23/08 6161 / 5811 9.5 50 13 21 11/14/17 6.4 1 6 3/92 Tr 9.0 8.6 32000 720 9/23/08 6628 / 6248 9.5 50 14 20 13/15/ 6.5 1 6.5 4/90 Tr 10.0 9.4 0.20 32500 520 9/24/08 6870 / 6483 9.5 52 14 22 11/16/20 6.6 1 6.5 4/90 Tr 10.0 9.4 0.15 32000 380 9/24/08 7230 / 6840 9.6 53 15 23 11/16/ 6.2 1 7.5 4/89 .10 10.0 9.4 0.15 31500 280 9/25/08 7462 / 7072 9.6 51 15 23 13/18/22 6.2 1 7.5 4/89 Tr 10.0 9.1 0.10 32000 240 9/26/08 7462 / 7072 9.7 54 16 25 11/17/21 6.0 1 7.5 4/89 Tr 10.0 9.6 0.20 31000 120 9/27/08 7462 / 7072 9.7 60 15 24 11/17/21 6.4 1 8.0 4/89 Tr 10.0 9.6 0.25 29500 280 9/28/08 7462 / 7072 9.7 60 15 24 11/17/21 6.4 1 8.0 4/89 Tr 10.0 9.6 0.25 29500 280 9/28/08 7462 / 7072 9.7 75 16 26 13/18/ 6.0 1 8.0 3/89 Tr 11.0 9.5 0.20 30000 220 9/29/08 7462 / 7072 9.7 65 16 26 12/18/23 6.4 1 8.0 3/89 Tr 11.0 9.3 0.20 29500 220 9/29/08 7462 / 7072 9.4 58 15 25 12/17/20 6.2 1 7.0 3/90 Tr 10.0 9.0 0.20 29000 240 HI EPOCH 27 • MARATHON OIL COMPANY BC 19 Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo -Pro DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H2O SD MBT pH AIk CI- Ca+ 9/30/08 7484 / 7094 9.5 63 15 24 10/15/16 7.6 1 8.0 3/89 Tr 8.0 10.0 0.50 29000 360 9/30/08 8056 / 7666 9.6 55 15 20 8/14/15 6.4 1 8.0 3/89 Tr 7.5 9.8 0.45 30000 200 10/01/08 9068 / 8678 9.6 55 17 22 8/14/15 5.6 1 8.5 4/88 Tr 8.0 9.8 0.45 32000 160 10/01/08 9068 / 8678 9.6 56 15 23 8/14/15 5.6 1 8.5 4/88 Tr 8.0 9.9 0.45 31000 160 10/02/08 9068 / 8678 9.6 58 15 23 8/14/15 5.6 1 8.5 4/88 Tr 8.0 9.8 0.45 31000 180 10/03/08 9068 / 8678 9.6 57 15 22 8/14/15 5.6 1 8.5 4/88 Tr 8.0 9.6 0.40 31000 160 10/04/08 9068 / 8678 9.7 55 15 19 7/14/15 5.5 1 8.5 4/88 Tr 9.0 10.1 0.50 30000 160 10/04/08 9068 / 8678 9.6 56 15 20 7/14/15 5.5 1 8.5 4/88 Tr 9.0 10.0 0.45 30000 160 10/05/08 9068 / 8678 9.7 56 15 20 7/14/15 5.6 1 8.5 4/88 Tr 8.0 9.7 0.40 30000 160 10/06/08 9068 / 8678 8.6 28 1 1 KCL Brine 7.7 30000 EPOCH 28 I • • MARATHON OIL COMPANY BC 19 4.4. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE S/N TFA IN OUT FT HRS ROP Lo — Avg — Hi RPM Lo — Avg CONDITION — Hi 1 RR 17.5 HTC CR -1 6025019 3x20 106 160 54 1.02 82.6 0.7 — 2.7 46 286 — 297 1- 1- WT- A- E -1 -NO -BHA 1 x18cj 6.3 309 2 16.0 HTC MX -1 6065901 3x20 160 2517 2357 25.54 110.8 0.6 — 8.1 — 50 291 — 1278 1- 1- WT- A- E- 1 -NO -TD 1x18cj 31.8 — 1915 3 12.25 HCC 7014510 6x13 2517 7462 4945 75.57 91.3 .2 — 8.2 75 980 —1400 1- 2- WT- A- X- 1 -NO -TD HCM506Z 36.3 — 1806 4RR 12.25 HCC MXL -1 6054843 4x18 7462 7462 0 n/a n/a n/a n/a n/a 1 1 -WT A-E- 1-NO -TD Clean out run only 5 8.5 HCC DP605 7118417 7x12 7462 9068 1606 17.45 101.1 1.8 — 11.0 — 79 980 —1400 0- 0- NO- A- X- 1 -NO -TD 35.0 — 1806 6RR 8.5 HTC MX -1 6054215 3x29 9068 9068 0 n/a n/a n/a n/a n/a 1- 1- NO- A-E- 1-NO -TD Clean out run only El EPOCH 29 DEPTH (FT) • (0 CO v 0) 01 A 0) N O O CD O O O 0 O O 0 0 CD 0 0 0 CD O 0 00 00 O O O O 00 9/10/2008 .p cn 9/11/2008 - • 9/12/2008 - 9/13/2008 - O 9/14/2008 - "C O 9/15/2008 - O m 9/16/2008 - • n 9/17/2008 - • n 9/18/2008 - • 9/19/2008 - D 9/20/2008 - 9/21/2008 - O M Z 0 9/22/2008 - O • 9/23/2008 - 0) 0 /24/2008 - -0 v m C)) < 9/25/2008 - Z f p � 9/26/2008 - • o CO C) 9/27/2008 - • 9/28/2008 - • 9/29/2008 - 9/30/2008 - 10/1/2008 - 10/2/2008 - • 10/3/2008 - • w N 6) 10/4/2008 - • N A (T 10/5/2008 - • o - o (u 10/6/2008 - • w • 10/7/2008 • 10/8/2008 • 0 Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Mitch Burns DATE Sept 13, 2008 DEPTH 106 PRESENT OPERATION Picking up drill pipe and HWDP TIME 24:00 YESTERDAY 106 24 HOUR FOOTAGE 0 CASING INFORMATION 20" @ 106 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 RR 17.5 HTC CR -1 6025019 3x20 1x18cj 106 To be run DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 106 / 106 TVD MW 8.6 VIS 57 PV 18 YP 18 FL 13.8 Gels 6/14/15 CL- 700 FC 1 SOL 3.0 SD 0 OIL 0/97 MBL 25 pH 8.9 Ca+ 30 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Ongoing rig up operations. Prep and cut 20" conductor. Install 20" SLC by 21 1/4" 2M flanged starting head. Test head to 300psi for 10 minutes. DAILY Nipple up all components of diverter system (21 1/4" 2M diverter, 16" diverter valve, 16" diverter line). Function test diverter and diverter valve. ACTIVITY Drill 35' rat hole and install mouse hole. Pick up off racks, drift, make up and stand back 2528' (80 joints /40 stands) of 5" drill pipe. Pick up, drift, SUMMARY make up and stand back 21 joints (plus jars) /11 stands of 5" HWDP. Pick up and make up used 17 1/2" bit, bit sub and crossover. Make up to first stand of 5" HWDP and prepare to drill out conductor. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2525 RW: 585 REPORT BY Craig Silva • • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Mitch Bums DATE Sep 14, 2008 DEPTH 877 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 106 24 HOUR FOOTAGE 771 CASING INFORMATION 20" @ 106' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 214 0.98 053.06 213.99 334 0.98 058.69 333.97 SURVEY DATA 454 1.07 058.08 453.95 694 1.58 062.17 693.89 817 1.30 064.17 81685 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1RR 17.5 HTC CR -1 6025019 3x20 1x18cj 106 160 54 1.02 1- 1- WT- A- E -1 -NO -BHA P/u directional assembly 2 16.0 HTC MX -1 6065901 3x16 1x18cj 160 717 9.38 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 462.7 © 345 10.1 @ 646 109.2 65.0 FT /HR SURFACE TORQUE 3855 @ 654 806 @ 344 2457.3 2567.6 AMPS WEIGHT ON BIT 14 @ 691 0.5 @ 454 3.1 7.4 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1062 @ 868 286 @ 129 779.7 946.4 PSI DRILLING MUD REPORT DEPTH 800 / 800 TVD MW 9.0 VIS 77 PV 12 YP 40 FL 16.0 Gels 27/33/ CL- 500 FC 2 SOL 5.0 SD 0.33 OIL 0/95 MBL 22.5 pH 8.4 Ca+ 40 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 618 0 © 873 0.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 13 © 618 4 @ 873 8.1 CONNECTION GAS HIGH ETHANE (C -2) © @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C-4) © @ CURRENT BACKGROUND /AVG 0 / 0 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill out conductor from 32' to 106'. Spud Well when drilling out of conductor. Drill from 106' to 160'. Circulate bottoms up and circulate hole clean. Pull out of hole. Break and lay down bit, bit sub, crossover. Pick up and make up directional assembly. Run in hole with directional tools to 156'. DAILY Make up to first stand of 5" HWDP. Tag fill at 157'. Clean out fill from 157' to 160'. Drill from 160' to 183'. Flowline plugged off. Work on clearing ACTIVITY out major restriction caused by large volume of gravel in flowline. Pump out and clean out mud (46 bbls) that had backflowed into and adjacent to SUMMARY cellar. Finish clearing flowline. Drill from 183' to 208'. Flowline plugged off second time. Clear out restriction caused by significant volume of gravel in flowline. Finish clearing flowline. Drill from 208' to 216'. Briefly clean minor third restriction caused by mixed gravel and sand in flowline. Drill with 5" HWDP from 216' to 815' and with 5" drill pipe from 815' to 877'. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2525 RW: 585 REPORT BY Craig Silva 0 • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Mitch Burns DATE Sep 15, 2008 DEPTH 2394 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 877 24 HOUR FOOTAGE 1517 CASING INFORMATION 20" @ 106' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 944 1.23 69.95 943.82 1322 1.66 71.53 1321.70 SURVEY DATA 1701 1.79 69.27 1700.54 2081 1.48 63.75 2080.38 2334 1.68 65.27 2333.28 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 13.0 HTC MX -1 6065901 3x16 1x18cj 160 2234 23.81 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 590.2 @ 1889 14.0 @ 1240 112.8 111.5 FT /HR SURFACE TORQUE 4956 © 2026 1823 @ 1508 3001.9 3256.9 AMPS WEIGHT ON BIT 29 @ 2341 0 @ 1602 10.1 16.4 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1861 @ 2344 646 @ 1234 1457.6 1575.0 PSI DRILLING MUD REPORT DEPTH 2250 / 2250 TVD MW 9.6 VIS 66 PV 17 YP 22 FL 8.0 Gels 10/27/ CL- 550 FC 2 SOL 8.5 SD 0.15 OIL 0/92 MBL 17.5 pH 8.8 Ca+ 120 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 32 @ 2303 0 @ 941 6.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 6498 @ 2303 6 @ 941 1263.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 5 / 12 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LIT HOLOGY DAILY Drill from 877' to 1507'. Pull out of hole 2 stands from 1507 to 1380'. Repair die - holder in Topdrive grabber box. Change out the Topdrive ACTIVITY compensator cylinder on off- driller side. Finish work on Topdrive. Run back in hole 1 stand from 1380' to 1444'. Wash 2nd stand in from 1444' SUMMARY to 1507'. Drill from 1507' to 2394'. (Note 30 bbl Hi -Vis sweep started around at 2015', and approximately 200% increase in returns observed as sweep went over shakers). EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 2525 RW: 585 REPORT BY Craig Silva III • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 16, 2008 DEPTH 2517 PRESENT OPERATION Running 13 3/8" casing. TIME 24:00 YESTERDAY 2394 24 HOUR FOOTAGE 123 CASING INFORMATION 20" © 106' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 2457 1.52 056.80 2456.24 2517 (Projection) 1.45 056.00 2516.22 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 16.0 HTC MX -1 6065901 3x16 1x18cj 160 2517 2357 25.54 1- 1- WT- A- E- 1 -NO -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 134.1 @ 2397 30.9 @ 2419 85.5 117.9 FT /HR SURFACE TORQUE 4884 @ 2404 2328 @ 2395 3139.1 3117.8 AMPS WEIGHT ON BIT 31.8 @ 2404 4.2 @ 2494 12.6 6.6 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1915 @ 2404 1493 © 2395 1767.1 1697.2 PSI DRILLING MUD REPORT DEPTH 2517 / 2516 TVD MW 9.6 VIS 83 PV 22 YP 26 FL 10.5 Gels 12/27/31 CL- 650 FC 2 SOL 8.5 SD Tr OIL 0/92 MBL 23.0 pH 8.9 Ca+ 120 CCI MWD SUMMARY INTERVAL TO • TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 19 © 2399 5 @ 2490 8.8 TRIP GAS CUTTING GAS @ @ WIPER GAS 5, 3 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3854 @ 2399 1040 @ 2490 1753.0 CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Drill from 2394' to 2517'. Circulate while working last stand of pipe. Break connection and drop carbide. Begin circulating carbide around and observe Epoch Rigwatch system locked up and not recording strokes. Troubleshoot and restart Rigwatch system. Circulate and work pipe while waiting for system restart. Break connection again and drop second carbide. (Circulate approximately 6500 strokes total between first and second carbides). Continue pumping and working pipe. Circulate original cuttings bottoms up after starting second carbide. Continue to circulate hole clean. Circulate both carbides back with relatively low gas peaks (7 units and 6 units). Second carbide (acetylene) gas peak back at close to theoretical hole volume. Finish circulating. Pull out of hole from 2517' to 156' (outside conductor) on wiper trip. Briefly service rig. Run back in hole from 156' and tag restriction at 1826'. Kelly up and wash down from 1803' to 1887'. Continue running in hole from 1887' and tag restriction at 2027'. Kelly up and wash down from 2027' to 2077'. Continue running in hole from 2077' to 2457'. Wash down from 2457' to 2517'. Circulate bottoms up DAILY and record 5 units of wiper gas. Pump and circulate around 30 bbl Hi -Vis sweep. Circulate hole clean. Pull out of hole from 2517' to 1636' on wiper ACTIVITY trip. Run back in hole from 1636' to 2457'. Wash down from 2457' to 2517'. Circulate bottoms up and record 3 units of wiper gas. Circulate, clean W SUMMARY and condition hole. Pull out of hole with 5" drill pipe to 815'. Pull and stand back 5" HDP and jars to 156'. Break and lay down 2 crossovers and shock sub. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Inspect all connections while pulling and laying down bottom hole assembly. Lay down bit handling tools. Clear and clean rig floor. Prepare to run 13 3/8" surface casing. Change out from short to long bails. Lay down pipe elevators. Install pick -up line. Move breakout tongs to drillers side and install correct tong head. Install fill -up line. Install casing elevators. Rig up and test stabbing board. Rig up casing tongs and tall snub post. Remove rotary bushings and rig up casing spider slips. Tie one tugger line back in derrick for pipe pick -up and second tugger line back to hang casing tongs. Rig up Weatherford power tongs. Make up EZ -turn valve onto casing swage for safety valve and function check (and record in IADC). Stage centralizers and lock rings on rig floor. Clean casing threads of each shoe track joint before make up. Hold pre -job meeting with Weatherford hands on procedures and safety for running surface casing. Run 13 3/8" casing as per Marathon. Pick up, Bakerlok, make up and run in hole 13 IP 3/8" shoe track (shoe joint, spacer joint, sting -in float collar). Check floats. Continue running in 13 3/8" casing. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva 0 Marathon Oil Company EPOCH Beaver Creek Unit DAILY WELLSITE REPORT till BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 18, 2008 DEPTH 2517 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 2517 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2517 / 2516 TVD MW 9.6 VIS 83 PV 22 YP 26 FL 10.5 Gels 12/27/31 CL- 650 FC 2 SOL 8.5 SD Tr OIL 0/92 MBL 23.0 pH 8.9 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 0 DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Rig up drill pipe elevators. Pick up stackwasher. Using the rig pump, thoroughly wash and flush diverter stack inside and out to remove residual cement. Finish nippling down the last components of the diverter system. Move the diverter stack out of the cellar and mount on stand. Begin DAILY loading 5" drill pipe for next hole section on pipe racks. Remove and load off 21 1/4" sliplock starter head. Cut 20" conductor. Make final cut on 13 ACTIVITY 3/8" casing and then dress out. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Test wellhead to 1600psi for 10 SUMMARY minutes. Set spool and HCR on stack. Set stack and continue nipple up of 13 5/8" 5M BOPE. Repair test pump hydraulics. Service Topdrive and carrier. Strap 5" drill pipe on racks. Finish cleaning pits and begin mixing new Flo -Pro mud. Work on Epoch RPM sensor. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Begin testing BOPE to 250psi Low / 5000psi High for 10 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Bums DATE Sep 17, 2008 DEPTH 2517 PRESENT OPERATION Nipple down BOPE TIME 24:00 YESTERDAY 2517 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2517 / 2516 TVD MW 9.6 VIS 83 PV 22 YP 26 FL 10.5 Gels 12/27/31 CL- 650 FC 2 SOL 8.5 SD Tr OIL 0/92 MBL 23.0 pH 8.9 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 1 @ pumping cement 0 @ circulating down dart 0 TRIP GAS 1 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running in hole with 13 3/8" casing as per Marathon and land at 2510' (with float collar at 2464'). Note slick casing run with no fill on bottom. Rig down and load off all Weatherford casing running equipment. Rig down fill up line. Clear rig floor. Change out bails, elevators, tongs and snubbing post to handle and run 5" drill pipe. Prep pipe spinner. Make up inner string tools (stab -in sub, 5' pup and centralizer) on 5" drill pipe. Rig up false rotary for running 5" drill pipe inside 13 3/8" casing. Run in hole with 5" drill pipe and stab -in sub to top of float collar at 2464'. Rig up cementing line. Tag and sting into float collar and space out. Circulate and condition hole. Record 1 unit of trip gas. Pump 380 bbls of mud to Hanson Tank prior to cementing. Build 40 bbl SAPP spacer. Rig up cementing lines. Hold pre -job meeting with BJ cementers on safety and procedures for cement job. Pump 40 bbls of 8.4ppg Mud Clean II (with 1 gallon red dye added) using rig pumps. Switch over to BJ pumping unit. Pump 3.0 bbls of water to fill cement lines. Observe leak at valve on rig floor. Change out valve. Pump additional 0.5 bbls of water to refill cement DAILY lines and pressure test to 2554psi. Bleed off pressure. Batch cement to 12.Oppg. Pump 337.0 bbls of 12.0ppg cement slurry (762 sacks Type I LW- ACTIVITY 6 cement and accelerator additives to 187.40 bbls of mix water for 10.33 gal water /sack and yield of 2.48 cu ft per sack). Pump cement slurry and SUMMARY then follow with 37.4 bbls of 9.6ppg mud to displace. Bleed off pressure. Check floats. Cement in place. No losses during pumping with good excess cement returns to surface. Cement returns treated with citric acid retarder. Rig down and flush cementing head and lines and continue rigging down BJ. Unsting from float collar. Float holding. Pull one stand to 2404' and rig up to pump ball down pipe. Pump wiper ball down to clear drill pipe of any residual cement. Treat all mud returns for traces of cement product. Dump returns during and after pumping ball. Finish pumping. Rig up false rotary table and pull out of hole with 5" drill pipe from 2404', Break and lay down stab -in assembly (5' pup, stab -in tool, centralizer). Rig down false rotary. Change out alternator belt on #2 carrier engine. Flush, re -flush and drain 20" by 13 3/8" annulus, flowline and mud lines. Pull plate. Clear and clean rig floor and cellar. Wait on cement. Prep diverter for nipple down. Begin pumping out and hauling off spud mud and begin cleaning pits. Nipple down and remove diverter line and knife valve. Disconnect tumbuckles to stack and secure out of the way. Nipple down and rig down fill -up line, bleeder line, trip tank line, flow line, kill line, 2" valve, actuator and scaffolding. Remove and lay down mousehole. Change out HCR valve on stack. Make rough cut on 13 3/8" casing and lay down stub section (26.50'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva 0 Marathon Oil Company Beaver Creek Unit DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 18, 2008 DEPTH 2517 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 2517 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ © KLBS I ROTARY RPM © @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2517 / 2516 TVD ! MW 9.6 VIS 83 PV 22 YP 26 FL 10.5 Gels 12/27/31 CL- 650 FC 2 SOL 8.5 SD Tr OIL 0/92 MBL 23.0 pH 8.9 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE III DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG PENTANE (C -5) © © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Rig up drill pipe elevators. Pick up stackwasher. Using the rig pump, thoroughly wash and flush diverter stack inside and out to remove residual cement. Finish nippling down the last components of the diverter system. Move the diverter stack out of the cellar and mount on stand. Begin DAILY loading 5" drill pipe for next hole section on pipe racks. Remove and load off 21 1/4" sliplock starter head. Cut 20" conductor. Make final cut on 13 ACTIVITY 3/8" casing and then dress out. Install 13 3/8" sliplock connection by 13 5/8" 5M flanged multibowl wellhead. Test wellhead to 1600psi for 10 SUMMARY minutes. Set spool and HCR on stack. Set stack and continue nipple up of 13 5/8" 5M BOPE. Repair test pump hydraulics. Service Topdrive and carrier. Strap 5" drill pipe on racks. Finish cleaning pits and begin mixing new Flo -Pro mud. Work on Epoch RPM sensor. Prepare to test BOPE. Pull wear ring. Set test plug. Rig up testing equipment. Begin testing BOPE to 250psi Low / 5000psi High for 10 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • I • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 19, 2008 DEPTH 2537 PRESENT OPERATION Preparing to displace mud system TIME 24:00 YESTERDAY 2517 24 HOUR FOOTAGE 20 CASING INFORMATION 13 3/8" @ 2510 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 20 0.22 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 228.8 @ 2520 43.6 @ 2530 122.4 63.9 FT /HR SURFACE TORQUE 5318 @ 2533 2043 @ 2518 3181.1 2224.5 AMPS WEIGHT ON BIT 16 @ 2533 2 @ 2537 9.1 2.7 KLBS ROTARY RPM 42 @ 2518 38 © 2533 41.2 41.9 RPM PUMP PRESSURE 1036 © 2533 742 © 2518 935.7 757.5 PSI DRILLING MUD REPORT DEPTH 2537 / 2536 TVD MW 8.9 VIS 47 PV 8 YP 15 FL 7.5 Gels 8/11/13 CL- 31500 FC 1 SOL 2.0 SD 0 OIL 3/95 MBL 2.0 pH 8.9 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS S GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 © 2520 0 © 2527 0.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 220 @ 2520 127 @ 2527 157.0 CONNECTION GAS HIGH ETHANE (C -2) @ © AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 0 / 1 PENTANE (C -5) @ © HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Carbonaceous Material PRESENT LITHOLOGY SAND Test all BOPE to 250psi Low / 3500psi High for 10 minutes (annular, upper pipe rams, upper topdrive, check valve, annular, dart valve, floor valve, lower topdrive, outside kill, inside kill, HCR, manual choke, lower pipe rams, blind rams, CMVs 1 -12). Perform accumulator drawdown test. Test all gas alarms. Observed leak on #12 CMV, repaired leak and retested. Observed leak on outside kill line valve, function tested valve and retested. Observed leak on Graylock on choke line, tightened up and retested. Rig down test equipment. Pull test plug. Install wear ring. Rig up test equipment and test 13 3/8" casing to 1500psi for 30 minutes. Rig down test equipment. Install elevators. Pick up and prepare pipe handling tools DAILY on rig floor. Pick up, rabbit, drift, make up, run in hole, pull out standing back in the derrick and strap 90 joints total (45 stands) of pre- staged 5" drill W ACTIVITY pipe off the pipe racks. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM stabilizer, pony NMDC, MD). W SUMMARY Orient MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, crossover). Make up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 797'. Test MWD pulse signal. Strap, pick up, rabbit, drift, make up, run in hole 52 more joints (26 stands) of pre- staged and prepped 5" drill pipe off the pipe racks to 2437'. Install corrosion ring in next stand of 5" drill pipe to be added to string. Briefly circulate and condition mud. Wash down with pipe out of derrick from 2437' and tag cement at 2459'. Drill cement from 2459' and tag float collar at 2464'. Drill out float equipment and remaining shoe tract (cement, shoe at 2510', rathole) to 2517'. Drill 20' of new hole from 2517' to 2537. Circulate bottoms up. Pump mud over to Hanson tanks with charge pumps to make room for displacement. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 20, 2008 DEPTH 3856 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 2537 24 HOUR FOOTAGE 1319 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2567 1.94 060.23 2566.19 2883 1.87 179.03 2882.10 SURVEY DATA 3261 7.71 196.97 3258.76 3576 17.25 209.52 3566.49 3892 26.32 209.06 3859.41 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 1339 14.47 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 467.0 © 3322 6.4 © 3721 112.4 91.6 FT /HR SURFACE TORQUE 5240 © 3693 0 @ Sliding 2187.3 1629.1 AMPS WEIGHT ON BIT 20.0 @ 2931 0.7 @ 2788 4.9 6.4 KLBS ROTARY RPM 73 @ 3686 0 © Sliding 34.7 Sliding RPM PUMP PRESSURE 1491 @ 3668 464 @ 2560 1118.4 1226.5 PSI DRILLING MUD REPORT DEPTH 3650 / 3637 TVD MW 9.1 VIS 49 PV 11 YP 20 FL 6.2 Gels 12/15 CL- 30500 FC 1 SOL 3.0 SD Tr OIL 3/94 MBL 9.4 pH 9.4 Ca+ 280 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 63 @ 3045 0.9 @ 2557 7.0 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 13150 @ 3045 184 @ 2557 1412.2 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 4 / 11 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone Minor Tuffaceous Claystone, Tuffaceous Siltstone. PRESENT LITHOLOGY SAND DAILY ACTIVITY Pump 30 bbls of water to act as a spacer, follow with a 30 bbl Hi -Vis sweep and then displace the old 9.6ppg Spud Mud with 360 bbls of SUMMARY new 8.9ppg Flo -Pro mud. Shut down pumps and perform Formation Integrity Test to 12.Oppg EMW. Drill ahead (rotating and sliding) from 2537' to 3856'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • Marathon Oil Company ill Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 21, 2008 DEPTH 4962 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 3856 24 HOUR FOOTAGE 1106 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3954 27.48 209.28 3914.70 4208 31.58 203.63 4134.60 SURVEY DATA 4459 31.55 203.58 4347.83 4776 31.31 201.79 4619.08 5028 31.34 201.38 4834.77 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 2445 25.40 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 463.7 @ 4332 14.5 @ 4942 114.2 61.9 FT /HR SURFACE TORQUE 7014 @ 4943 0 @ Sliding 4946.7 4865.5 AMPS WEIGHT ON BIT 23.3 @ 4453 2.4 @ 3861 8.4 5.8 KLBS ROTARY RPM 77 @ 4750 0 @ Sliding 60.2 76.4 RPM PUMP PRESSURE 1545 @ 4453 983 © 4899 1265.6 1075.1 PSI DRILLING MUD REPORT DEPTH 4700 / 4554 TVD MW 9.4 VIS 49 PV 12 YP 22 FL 6.0 Gels 13/17/ CL- 31000 FC 1 SOL 8.0 SD 0.10 OIL 3/89 MBL 5.5 pH 9.4 Ca+ 240 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 17 © 3859 1 © 4585 5.4 TRIP GAS CUTTING GAS © @ WIPER GAS 4 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 3401 © 3859 217 © 4242 1082.1 CONNECTION GAS HIGH ETHANE (C -2) © © AVG PROPANE (C -3) © © CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 6 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash, Conglomeratic Sand, Coal /Carbonaceous Shale, Tuffaceous Shale. PRESENT SAND /SANDSTONE LITHOLOGY DAILY Drill (rotating and sliding) from 3856' to 4140'. Circulate bottoms up and continue to circulate hole clean. Pull out of hole from 4140' to 2437' on ACTIVITY wiper trip. Service rig. Shim Topdrive slide. Run back in hole from 2437' to 4077'. Wash down from 4077' to 4140' with no fill. Drill (rotating and SUMMARY sliding) from 4140' to 4962'. Circulate bottoms up. Circulate, clean and condition hole while building volume and starting prodedures to slow down mud losses. Pump LCM pill. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva 411 1 Marathon Oil Company III Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Bums DATE Sep 22, 2008 DEPTH 5845 PRESENT OPERATION Wiper Trip to shoe TIME 24:00 YESTERDAY 4962 24 HOUR FOOTAGE 883 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5154 31.34 202.11 4942.39 5281 31.31 202.32 5050.88 SURVEY DATA 5407 31.98 202.40 5158.14 5533 32.68 201.73 5264.61 5659 31.52 201.41 5371.35 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 3328 35.24 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 141.5 @ 5721 22.0 @ 5597 92.6 78.1 FT /HR SURFACE TORQUE 11817 @ 5517 0 @ 5606 8617.2 9098.6 AMPS WEIGHT ON BIT 24.6 @ 5723 0.5 @ 5151 7.7 13.1 KLBS ROTARY RPM 75 © 5006 0 © Sliding 72.6 73.7 RPM PUMP PRESSURE 1373 © 5843 956 © 5341 1194.6 1350.3 PSI DRILLING MUD REPORT DEPTH 5845 / 5530 TVD MW 9.4 VIS 45 PV 11 YP 17 FL 6.8 Gels 9/12/ CL- 31000 FC 1 SOL 5.5 SD Tr OIL 2/93 MBL 7.5 pH 9.5 Ca+ 240 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 359 @ 5422 4 @ 5032 73.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 69647 @ 5422 891 @ 5034 14403.8 CONNECTION GAS HIGH ETHANE (C -2) 71 @ 5422 0 @ 8.3 AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON Note 1 long continuous interval of stacked massive sand sections with gas over 100 units and poor or better shows SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 5282 -5572 Mostly fine to medium disaggreagated sand. Small fractions 359u Max, 250u Avg Sd /SS /minor Tuff SS: olv gry-med gry, dom mod w of very fine sand or coarser sand within fining upward and 112u Background srtd in fn -med range, evident fining upward, ang- sequences. Consolidated ss has poor vis por due to through interval. 20u sbang w/ sm fraction of rd -w rdd, mostly tuff cly intergrain clays, but suspect zones of fair of better Por in thick before and after gas matrix disintegrated by drilling process, lithic aren- disaggregatd intervals. sand. comp gyeke, Por never easily estimated LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Tuffaceous Sandstone, Coal /Carbonaceous Shale, Conglomeratic Sand. PRESENT SAND /SANDSTONE LITHOLOGY Finish pumping LCM (Mix II) pill. Drill ahead (rotating and sliding) from 4962' to 5404'. Circulate bottoms up at connection due to sustained high DAILY gas over 250 units. Record 282 units maximum gas. Circulate gas down. Drill ahead (rotating and sliding) from 5404' to 5597'. Circulate at ACTIVITY reduced pump rate (196gpm) while working on shaker problem. Pull and rack back 1 stand to 5529' to continue troubleshooting shake problem. SUMMARY Correct problem with shaker. Wash back in hole from 5529' to 5597'. Drill (rotating and sliding) from 5597 to 5845'. Circulate bottoms up and continue to circulate hole clean. Check for flow. Pull out of hole from 5845' to 2437' on wiper trip to shoe. Service rig, Topdrive and pipe spinner. Grease blocks and crown. Prep to run back in hole. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva 1 • Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Mitch Burns DATE Sep 23, 2008 DEPTH 6661 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5845 24 HOUR FOOTAGE 816 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5785 30.52 202.16 5479.33 6038 27.12 202.85 5700.26 SURVEY DATA 6228 23.30 200.13 5872.20 6481 19.40 198.98 6107.89 6671 15.19 198.48 6289.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 4144 50.68 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 156.2 @ 6416 8.1 © 6427 67.2 55.1 FT /HR SURFACE TORQUE 15364 @ 6588 0 © Sliding 5611.9 9894.8 AMPS WEIGHT ON BIT 36.3 © 6596 1.3 @ 5900 10.1 16.2 KLBS ROTARY RPM 78 @ 5896 0 @ Sliding 45.0 74.2 RPM PUMP PRESSURE 1620 © 6438 982 @ 5894 1318.3 1501.7 PSI DRILLING MUD REPORT DEPTH 6628 / 6248 TVD MW 9.5 VIS 50 PV 14 YP 20 FL 6.5 Gels 13/15/ CL- 32500 FC 1 SOL 6.5 SD Tr OIL 4/90 MBL 10.0 pH 9.4 Ca+ 520 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 229 © 6320 6 @ 6105 57.9 TRIP GAS CUTTING GAS @ @ WIPER GAS 24 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 45219 @ 6320 1216 © 6105 11439.6 CONNECTION GAS HIGH ETHANE (C -2) 66 @ 6403 0 © 6.8 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 8 / 38 PENTANE (C -5) @ @ HYDROCARBON Note: Total of 143' of sand section with gas over 100 units. Difficult to determine show quality when near 100% loose sand grains. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 6309 -6351, 6375- Massive sands with evident fining upward. Consolidated sandstone 229u; Avg thru zones 180u, Sand /Sandstone: med gray, mod w 6414,6427 -6470, 6571- is always a minor fraction and usually tuff clay matrx support. Abnt background thru zones srtd if fn to med, ang- subang, most 6590 intergrain material looks like gas poor gas potential, but pervasive 112u, before and after tuff clay mtrx when consol, speculate loose grains suggest decent Por. background 35u fair Por. LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Conglomeratic Sand /Conglomerate. PRESENT LITHOLOGY SAND DAILY ACTIVITY SUMMARY Run back in from 2437' to 5782'. Wash down from 5782' to 5845'. Drill (rotating and sliding) from 5845' to 6661'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva • III Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 24, 2008 DEPTH 7251 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6661 24 HOUR FOOTAGE 590 CASING INFORMATION 13 3/8" © 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6734 13.47 199.06 6350.16 6861 10.55 199.14 6474.36 SURVEY DATA 6988 8.10 201.02 6599.67 7115 5.92 200.98 6725.71 7242 3.39 201.83 6852.26 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 4734 67.38 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 120.1 © 6894 4.0 @ 7153 51.1 20.5 FT /HR SURFACE TORQUE 16050 @ 7015. 0 © Sliding 6582.6 2121.0 AMPS WEIGHT ON BIT 34.0 @ 7064 1.9 @ 7270 12.3 12.0 KLBS ROTARY RPM 81 @ 6729 0 © Sliding 73.6 74.0 RPM PUMP PRESSURE 1806 @ 6723 1177 © 6873 1454.8 1524.5 PSI DRILLING MUD REPORT DEPTH 7230 / 6840 TVD MW 9.6 VIS 53 PV 15 YP 23 FL 6.2 Gels 11/16 CL- 31500 FC 1 SOL 7.5 SD 0.10 OIL 4/89 MBL 10.0 pH 9.4 Ca+ 280 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 124 © 7196 3 © 6871 33.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 24955 @ 7197 625 @ 6871 6765.2 CONNECTION GAS HIGH ETHANE (C -2) 13 @ 7197 0 @ 0.9 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG 16 / 44 PENTANE (C -5) @ @ HYDROCARBON Two minor sand intervals with gas over 100 units. Poor to fair show range. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON 6759 -6791, 7185- Massive sands with evident fining upward. Consolidated sandstone 124u; Avg thru zones 112u, Sand /Sandstone: dark gray, mod srtd 7205 is a minor fraction. Mix tuff clay and silic -calc intergrain material. background thru zones when fn to med, ang- subang, most Fragile, friable. Appears poor to fair gas potential, but pervasive 102u, before and after mixed silic -calc -clay mtrx when consol, loose grains suggest Por may be better. background 35u. possible fair Por. LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate,Tuffaceous Claystone, Tuffaceous Siltstone. PRESENT LITHOLOGY SAND CONGLOMERATIC SAND DAILY ACTIVITY SUMMARY Drill (rotating and sliding) from 6661' to 7251'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3200 RW: 585 REPORT BY Craig Silva III • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 25, 2008 DEPTH 7462 PRESENT OPERATION Running back to bottom on Wiper Trip TIME 24:00 YESTERDAY 7251 24 HOUR FOOTAGE 211 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7305 1.64 206.91 6915.20 SURVEY DATA 7368 0.98 193.77 6978.18 7462 (Projection) 0.98 193.77 7072.17 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 7462 4945 75.57 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 84.0 © 7367 3.9 @ 7252 37.7 59.0 FT /HR SURFACE TORQUE 17053 @ 7275 0 @ Sliding 10902.9 10987.0 AMPS WEIGHT ON BIT 18.9 @ 7291 0.7 © 7332 10.8 11.0 KLBS ROTARY RPM 77 @ 7396 0 © Sliding 73.9 75.0 RPM PUMP PRESSURE 1654 © 7381 1273 @ 7336 1452.2 1456.0 PSI DRILLING MUD REPORT DEPTH 7462 / 7072 TVD MW 9.6 VIS 51 PV 15 YP 23 FL 6.2 Gels 13/18/22 CL- 32000 FC 1 SOL 7.5 SD Tr OIL 4/89 MBL 10.0 pH 9.1 Ca+ 240 CCI MWD SUMMARY • INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 54 @ 7270 6 @ 7369 30.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 11000 © 7456 1277 © 7369 6036.6 CONNECTION GAS HIGH ETHANE (C -2) 2 © 7270 0 @ 7295 0.2 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ © HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate. Minor Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE LITHOLOGY Drill (rotating and sliding) from 7251' to 7462'. Circulate bottoms up and continue to circulate and condition mud. Hold weekly safety meeting with DAILY both crews while driller circulates and conditions. Circulate hole clean. Check for flow. Spot 40 bbl LCM pill on bottom. Pull out of hole from 7462' ACTIVITY to 2500' on wiper trip to shoe. Work through numerous tight spots on way out (at 7153', 7122', 6876', 6833', 6683', 6632', 6610', 6558', 6510', SUMMARY 6499', 6431', 6231', 6253', 6245', 6240', 6204', 6170', 6100', 6080', 6044', 6026', 6016', 6001', 5992', 5980', 5970', 5914', 5911', 5868'). Slip and cut 33' of drill line. Adjust brakes. Set and check crown -o- matic. Service rig and Topdrive. Run back in hole from 2500' (to 3824'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva • 0 Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 26, 2008 DEPTH 7462 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 7462 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3 12.25 HCC HCM506Z 7014510 6x13 2517 7462 4945 75.57 1- 2- WT- A- X- 1 -NO -TD Casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ © PSI DRILLING MUD REPORT DEPTH 7462 / 7072 MW 9.7 VIS 54 PV 16 YP 25 FL 6.0 Gels 11/17/21 CL- 31000 FC 1 SOL 7.5 SD Tr OIL 4/89 MBL 10.0 pH 9.6 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 1st WG at 7462 2 @ last pump shut down 22(1st circ) 3(2nd circ) TRIP GAS CUTTING GAS © © WIPER GAS 36(1st) 5(2nd) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © © CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running back in hole (from 3824') and tag restriction at 5815'. Kelly up and ream down from 5815' to 5855'. Continue running in hole from 5855' and tag restriction at 6554'. Kelly up and ream down from 6554' to 6594'. Continue running in hole from 6594' to 7398'. Kelly up and ream and wash down from 7398' to bottom at 7462'. Circulate bottoms up and record 36 units of wiper gas. Circulate hole clean. Pull out of hole from 7462' to 5782' on wiper trip. Do flow check at 5782'. Observe 2 -3bph static losses. Run back in hole from 5782' to 7428'. Wash down from 7428' to 7462'. Ream through slight ledge at 7447' and clean out 2' of fill on bottom. Begin circulating bottoms up. Lay down single to work one full stand of DAILY pipe. Continue to circulate bottoms up and record 5 units of wiper gas, Circulate, clean and condition hole. Check for flow. Pump 40bbl dry job. ACTIVITY Drop rabbit. Pull out of hole (SLM) with 5" drill pipe to 797'. Pull and stand back 5" HWDP and jars to top of directional tools at 137'. Break and lay SUMMARY down crossover. Pull and stand back 2 CSNMDPs. Break, lay down and load off remaining directional tools (MWD, NM stabilizer, NM pony collar, motor, bit). Clear and clean rig floor. Blow down mud lines. Hold pre -job meeting with Weatherford Wireline Services on procedures and safety for rigging up and running wireline logs. Rig up Weatherford's wireline running equipment. Pick up, strap, rabbit and install lubricator. Pick up and make up WWS Quad -Combo logging tool assembly. Load sources. Run logging assembly in hole to apparent ledge at 7450'. Log up from 7450 to 7000'. Run back to bottom for repeat section, get past ledge at 7450' and tag apparent fill at 7457'. Log up from 7457' with Quad -Combo logging assembly. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML:3455 RW: 635 Consulting: 1300 REPORT BY Craig Silva III Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 27, 2008 DEPTH 7462 PRESENT OPERATION Rigging up to run 9 5/8" casing TIME 24:00 YESTERDAY 7462 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 4RR 12.25 HCC MXL -1 6054843 4x18 7462 7462 0 n/a 1- 1- WT- A- E- 1 -NO -TD Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7462 / 7072 TVD MW 9.7 VIS 60 PV 15 YP 24 FL 6.4 Gels 11/17/21 CL- 29500 FC 1 SOL 8.0 SD Tr OIL 4/89 MBL 10.0 pH 9.6 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW 12 @ AVERAGE DITCH GAS TG at 7462 2 © last circulation 5 circ and cond TRIP GAS 12 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ © CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Log up with Weatherford Wireline Services' Quad -Combo logging assembly from 7456' (logger's depth) to 2510'. Pull out of hole with logging assembly. Remove sources. Rig down and lay down logging tools, lubricator and wireline running equipment. Clean rig floor. Pick up and make up short clean out assembly (bit, bit sub and crossover) to first stand of HWDP. Run in hole 5" HWDP (plus jars) to 665'. Continue running in hole with 5" drill pipe from 665' to 2495' (just inside shoe). Fill pipe. Continue running in hole with 5" drill pipe from 2495' to 5082'. Fill pipe. Continue running in hole with 5" drill pipe from 5082' to 7425'. Wash down from 7425' and tag ledge at 7428'. Ream through ledge and continue washing down to DAILY bottom at 7462'. Circulate while working pipe. Circulate bottoms up. Record 12 units of trip gas. Continue to circulate, clean and condition hole. ACTIVITY Check for flow. Spot 50 bbl 9.7ppg LCM pill on bottom (and up annulus to estimated 4400'). Pump 30 bbl 10.6ppg dry job. Pull out of hole with 5" SUMMARY drill pipe and 5" HWDP (plus jars). Break down and lay down crossover, bit sub and bit. Clear and clean rig floor. Remove drill pipe elevators and short bails. Install long bails and pick -up sling -line. Install casing elevators. Install Lafleur fill -up tool. Move breakout tongs to driller's side and install correct tong head. Prep to make gauge run with 9 5/8" casing hanger. Close annulus valve. Using single joint elevators, drift BOPs with landing joint and hanger. Mark elevation on landing joint. Pull wear bushing. Hold pre -job meeting on changing rams. Close blind rams. Change out upper 2 7/8" by 5 1/2" variable pipe rams to 9 5/8" casing rams. Run in test plug. Pick up, make up and install test joint. Rig up test equipment. Test casing rams to 250psi Low / 3500psi High for 5 minutes. Rig down test equipment. Pull test plug. Rig up and function stabbing board. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 Consulting: 1300 REPORT BY Craig Silva • • Marathon Oil Company EPOCH Beaver Creek Field DAILY WELLSITE REPORT Ell BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 28, 2008 DEPTH 7462 PRESENT OPERATION Circulating prior to cementing 9 5/8" casing TIME 24:00 YESTERDAY 7462 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2510' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7462 / 7072 TVD MW 9.7 VIS 75 PV 16 YP 26 FL 6.0 Gels 13/18 CL- 30000 FC 1 SOL 8.0 SD Tr OIL 3/89 MBL 11.0 pH 9.5 Ca+ 220 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE II) DITCH GAS 6 @ TG at 7424 1 © Circ at shoe 3 Circ prior to cmtng TRIP GAS 6 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 1 / 3 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LIT HOLOGY Note observation made by new rig crew that incorrectly sized (7 ") casing rams were installed. Change out the initial 7" rams with the correct 9 5/8" rams. Rerun, reinstall and reset the plug, test pipe and pressure test equipment. Test 9 5/8" casing rams to 250psi Low / 3500psi High for 5 minutes. Rig down test equipment and pull test plug. Move torque tube back in derrick for clearance. Rig up Weatherford casing tongs and tall snub post. Remove rotary bushings. Rig up casing spider slips. Make up EZ -turn valve onto casing swage (to act as a safety valve), function test and record in IADC. Pick up centralizers and lock rings and stage on rig floor. Tie one (red) tugger line back in derrick for picking up pipe, and the second (blue) tugger line back for hanging casing tongs. Hold pre -job meeting with all hands on procedures and safety for running intermediate casing string. Inspect rig -up. Pick up shoe joint and start run -in. Run in hole with 9 5/8" casing as per Marathon program. Clean and Bakerlok casing threads on successive shoe track joints during make up. Pick up and make up shoe track (shoe joint, 2 spacer joints, float collar) and run in DAILY hole to 117'. Circulate casing volume through shoe track and check float equipment. Note that position of pitcher nipple dropped down and to the ACTIVITY side as casing was being moved past and there was a space between the pitcher and and flowline nipples. It appeared the original riser joint was SUMMARY not seated in the annular properly (set on the bladder and not all the way down), so when it was knocked down to the proper metal to metal contact, a 2" gap was created. Set casing in slips with dog collar and retie tugger lines. Pull and change out pitcher nipples, sliding them over and down the already Bakerloked shoe tract joints. Reseat the longer pitcher nipple section and nipple up to flowline. Pump and test for leaking fluid (contacts are correctly sealed). Continue running 9 5/8" casing in hole as per Marathon. Attach centralizers as per tally and fill every joint on way in. Run casing from 11 to 2504' (inside shoe). Break circulation and fill pipe. Record 2 units maximum gas. Continue running 9 5/8" casing in hole from 2504' to 7418'. Break circulation. Break circulation and wash down from 7418' to landing depth of 7424'. Record 4 units maximum gas while washing down. Land hanger on load shoulder in multi -bowl wellhead (at 7424.35'). Drain stack and verify landing. Make up cementing head with top and bottom plugs pre - installed. Continue to circulate and condition mud prior to cement job. Circulate bottoms up and record 6 units of trip gas. Hold pre -job meeting with BJ and all hands on procedures and safety for cement job. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 • REPORT BY Craig Silva Marathon Oil Company 0 Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR Rowland Lawson / Dan Byrd DATE Sep 29, 2008 DEPTH 7462 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 7462 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ © AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7462 / 7072 TVD MW 9.4 VIS 58 PV 15 YP 25 FL 6.2 Gels 12/17/20 CL- 29000 FC 1 SOL 7.0 SD Tr OIL 3/90 MBL 10.0 pH 9.0 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 2 © Displacing cmt at 7424 0 © at pump shut down N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish pre -job meeting with BJ and all hands on procedures and safety for cement job. Begin batch mixing 204 bbls of 10.5ppg lead cement. Finish batch mixing lead cement. Finish circulating with rig pumps. Blow air through cement valves and lines to clear. Switch to BJ pumping unit. Pump 2.70 bbls of water and pressure test lines to 2566psi. Bleed off and line out to pump spacer. Begin mixing and pumping 20.1 bbls of 10.0ppg SealBond spacer. Finish pumping spacer and shut down. Open up bottom valve and drop first (bottom) plug. Pump 204.0 bbls of pre -mixed 10.5ppg lead cement slurry (345 sacks of Class G cement plus accelerator chemicals mixed with 103.60 bbls water to batch -up at 12.61 gal /sk and yield of 3.32 cu- ft/sk) and follow with 34.0 bbls of batched in 15.8ppg tail cement slurry (160 sacks of Class G cement plus accelerator chemicals mixed with 18.93 bbls water to batch -up at 4.97 gal /sk and yield of 1.18 cu- fUsk). Open top valve and close middle and bottom valve on circulating head. Drop second (top) plug. Pump 3.50 bbls of water to kick out the top plug. Switch over to rig pumps. Displace with 557.00 bbls (11874 strokes) of mud (and 562.99 bbls total displacement). Bump plug with 610psi over - pressure (and 1095psi total pressure). Bleed off. Check floats. Cement in DAILY place. Note 15.0 bbls of mud lost during displacement. Begin wait on cement. Flush down, blow down and rig down BJ cementing head and cement ACTIVITY lines. Blow down Topdrive, mud lines and mud pumps. Back out and lay down casing hanger landing joint. Remove casing elevators, long bails and SUMMARY pick up sling line. Install short bails. Remove and lay down Lafleur fill -up tool. Install drill pipe elevators. Move hanging sheave for breakout tongs to driller's side and install correct tong head. Pull and lay down casing spider slips. Load off the casing spider slips, casing elevators, long bails and Lafleur fill -up tool. Rig down and fold up stabbing board. Reset and realign torque tube. Clear and clean rig floor. Make up 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test pack -off. Test failed. Pull packoff and change split rings and inner seals. Run back in, energize seals and attempt retest. Test failed. Pull and uninstall packoff. Make up new 9 5/8" pack -off and run in on 1 joint of HWDP. Energize seals and attempt to test pack -off. Test failed. Pull second packoff and change split rings and inner seals. Run back in, energize seals and successfully test packoff to 5000psi for 10 minutes. Close blind rams. Change out upper 9 5/8" casing rams to 2 7/8" by 5 1/2" variable pipe rams. Clean rig floor. Run in test plug. Rig up testing equipment. Test annular preventer ( #1) to 250psi Low /3500psi High for 30 minutes. Begin testing all remaining BOPE. Observe check valve leaking on first test. Stop test. Clean out valve and successfully retest. Test all remaining BOPE to 250psi Low /3500psi High for 30 minutes (( #2) upper pipe rams, check valve, dart valve, upper Topdrive IBOP, CMVs 1- 10- 11 -12; ( #3) floor valve, lower Topdrive IBOP, outside kill valve, CMVs 6 -8 -9; (#4) inside kill valve, CMVs 2 -5-7; ( #5) NCR; ( #6) manual choke). • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 REPORT BY Craig Silva Marathon Oil Company • Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Sep 30, 2008 DEPTH 8056 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 7462 24 HOUR FOOTAGE 594 CASING INFORMATION 9 5/8" @ 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7494 0.60 184.44 7104.17 SURVEY DATA 7683 0.62 163.41 7293.16 7874 0.79 157.10 7484.14 8063 0.78 138.00 7673.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118417 7x12 7462 594 6.27 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 307.3 @ 7819 23.2 © 7501 106.3 61.0 FT /HR SURFACE TORQUE 13526 © 8023 7227 © 7723 10469.2 9914.2 AMPS WEIGHT ON BIT 28 @ 8021 1 © 7676 11.7 5.5 KLBS ROTARY RPM 88 @ 7785 40 @ 7474 74.3 79.2 RPM PUMP PRESSURE 1910 @ 8000. 1221 @ 7484 1675.1 1584.8 PSI DRILLING MUD REPORT DEPTH 8056 / 7666 TVD MW 9.6 VIS 55 PV 15 YP 20 FL 6.4 Gels 8/14/15 CL- 30000 FC 1 SOL 8.0 SD Tr OIL 3/89 MBL 7.5 pH 9.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 90 @ 7922 2 © 7464 30.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 18103 @ 7922 400 @ 7464 6121.1 CONNECTION GAS HIGH ETHANE (C -2) 5 © 7922 0 @ 0.2 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 8 / 40 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone. Minor Volcanic Ash, Coal /Carbonaceous Shale, Calcareous Tuff. PRESENT SAND /SANDSTONE TUFFACEOUS SANDSTONE . TUFFACEOUS CLAYSTONE LITHOLOGY Continue testing remaining BOPE to 250psi Low /3500psi High for 30 minutes (( #7) CMVs 3 -4, blind rams). Perform accumulator drawdown test. Test gas alarms. Rig down testing equipment. Pull test plug. Install wear bushing. Perform various rig service. Test 9 5/8" casing to 1750psi for 30 minutes. Pick up, make up and run in hole lower section of new directional assembly (bit, motor, NM string stabilizer, pony NMDC, MWD). Orient and scribe MWD tools. Dress monel threads. Make up and run in hole remaining directional tools (2 NMCSDP flex joints, steel crossover). Make DAILY up crossover to first stand of HWDP from derrick and run in hole with HWDP and jars to 797'. Test MWD pulse signal. Strap, pick up, rabbit, drift, ACTIVITY make up, run in hole 48 more joints (24 stands) of pre- staged and prepped 5" drill pipe off the pipe racks to 2309'. Install corrosion ring in next SUMMARY stand of 5" drill pipe to be added to string. Briefly circulate and condition mud. Run in hole with pipe out of derrick from 2309' to 7233'. Fill pipe. Troubleshoot #1 transmission shifter (transmission not shifting out of 3rd gear). Clear CPU defaults and work on transmission. Successfully correct transmission problem. Continue running in hole from 7233' and tag float collar at 7367'. Drill out float equipment and remaining shoe tract (cement, shoe at 7447', rathole) to 7462'. Drill 22' of new hole from 7462' to 7484'. Circulate bottoms up. Perform Formation Integrity Test (9.6ppg, 880psi, 7094tvd) to 12.0ppg EMW. Drill from 7484' to 8056'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 • REPORT BY Craig Silva Marathon Oil Company 10 Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 01, 2008 DEPTH 9068 PRESENT OPERATION Circulating bottoms up after wiper trip TIME 24:00 YESTERDAY 8056. 24 HOUR FOOTAGE 1012 CASING INFORMATION 9 5/8" © 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8063 0.78 138.00 7673.13 8253 0.89 145.09 7863.10 SURVEY DATA 8634 1.15 122.83 8244.05 8824 0.91 129.62 8434.02 9068 (Projection) 1.22 124.78 8677.98 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118417 7x12 7462 9068 1606 17.45 In Hole TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 185.9 @ 8819 18.9 © 8057 98.2 55.0 FT /HR SURFACE TORQUE 14419 @ 8891 8910 © 8273 11482.4 12257.4 AMPS WEIGHT ON BIT 35.0 @ 8441 1.8 @ 8642 10.6 7.5 KLBS ROTARY RPM 87 @ 8774 60 @ 8965 81.4 79.9 RPM PUMP PRESSURE 2084 © 8954 1171 @ 8396 1764.0 1632.0 PSI DRILLING MUD REPORT DEPTH 9068 / 8678 TVD MW 9.6 VIS 56 PV 15 YP 23 FL 5.6 Gels 8/14/15 CL- 31000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 8.0 pH 9.9 Ca+ 160 CCI el MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 189 @ 8555 2 @ 8823 36.7 TRIP GAS CUTTING GAS © @ WIPER GAS 212 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 37864 © 8555 460 @ 8823 7349.3 CONNECTION GAS HIGH ETHANE (C -2) 22 @ 8555 0 © 9004 0.7 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 8 / 155 PENTANE (C -5) @ © HYDROCARBON Note 1 long massive sand section with the uppermost zone having gas over 100 units and better than fair show. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 8551 -8564, upper zone Mostly fine to medium disaggreagated sand. Small fractions of 189u Max, 65u Avg Sd /SS /minor Tuff SS: med gry-med dk gry, of greater sand from very fine sand or coarser sand within fining upward sequence. and 25u Background dom mod w srtd in fn -med range, evident 8551 to 8625 Consolidated ss has poor vis por due to intergrain clays, but through interval. 8u fining upward, ang -sbang w/ sm fraction of suspect zones of fair or better Por when abundantly before and after gas rd -w rdd, mostly tuff cly matrix with minor sec disaggregated. Note show may be problematic due to interbedded sand. silic -calc cmttn, all comp gywke, Por difficult coal at top of zone. to estimate. LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Coal /Carbonaceous Shale, Volcanic Ash, Calcareous Tuff. PRESENT TUFFACEOUS CLAYSTONE.. TUFFACEOUS SILTSTONE.......... LITHOLOGY DAILY Drill from 8056' to 9068'. Circulate bottoms up. Pump around Hi -Vis sweep. Circulate, clean and condition hole. Pump survey. Check for flow. ACTIVITY Pull out of hole from 9068' to 7420' on wiper trip to shoe. Hole first pulls tight at 8968' and continues to pull tight at 23 more spots to 8014'. Kelly SUMMARY up and backream the rest of the way out from 8014' to 7420' (just inside shoe). Service rig and Topdrive. Grease crown. Run back in hole (slick) from 7420' to 9005'. Break circulation and wash from 9005' to bottom 9068'. Circulate bottoms up. Record 212 units of wiper gas. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3455 RW: 635 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company 0 Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 02, 2008 DEPTH 9068 PRESENT OPERATION Wireline logging TIME 24:00 YESTERDAY 9068 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 5 8.5 HCC DP605 7118417 7x12 7462 9068 1606 17.45 0- 0- NO- A- X- 1 -NO -TD TD of well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9068 / 8678 TVD MW 9.6 VIS 58 PV 15 YP 23 FL 5.6 Gels 8/14/15 CL- 31000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 8.0 pH 9.8 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (un its) HIGH LOW AVERAGE DITCH GAS 180 @ Circ hole clean after WG 3 © at pump shut down 80 after WG TRIP GAS CUTTING GAS @ @ WIPER GAS 212 (last report) CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) © © AVG PROPANE (C -3) © © CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Build and start pumping around 29 bbl Hi -Vis sweep while circulating bottoms up. Circulate sweep around and continue to circulate, clean and condition hole. Pull out of hole from 9068' to 7420' (SLM). Pump dry job. Drop rabbit. Continue pulling out of hole from 7420' to 797'. Pull and stand back 21 joints 5" HWDP plus crossover and jars (11 stands) to 137'. Pull, lay down and load off all directional tools (steel crossover, 2 NMCSDP flex joints, NM crossover, MWD, NM pony collar, NM stabilizer, motor, bit). Grade bit. Clear and clean rig floor. Lay down handling tools. Hold pre - job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Hang sheaves and rig up DAILY wireline running equipment. Pick up, make up and run in hole Weatherford's Quad -Combo logging assembly. Load sources for neutron tools. Run W ACTIVITY in hole to 9015' (53' from bottom). Log up from with WS Quad -Combo assembly from 9015' to 7446'. Pull wireline assembly out of hole. Unload SUMMARY sources. Break and lay down logging tools. Rig down WWS surface running equipment. Cut (153') and slip (120') of drilling line. Set and check crown -o- matic. Inspect brake and linkage. Hold second pre -job meeting with Weatherford Wireline Services' loggers on procedures and safety for handling wireline logging tools. Re -rig up Weatherford's wireline running equipment. Pick up, make up and run in hole with MFT logging assembly to 7400' (inside casing). Wait at 7400' until Marathon geology has determined the pressure points to be evaluated in the open hole section. Receive list of pressure points and logging instructions. Run in from 7400' with MFT logging assembly and take pressure points in both directions between 8889' to 8590'. Experience low pressure point success rate in all intervals attempted. Pull logging assembly back up into casing and function test MFT tool. Tool performs correctly inside casing. Run back down to open hole to attempt more pressure points. EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 3015 RW: 635 Consulting: 1300 REPORT BY Craig Silva III 410 Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 03, 2008 DEPTH 9068 PRESENT OPERATION Running in hole on clean out run TIME 24:00 YESTERDAY 9068 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9068 / 8678 MW 9.6 VIS 57 PV 15 YP 22 FL 5.6 Gels 8/14/15 CL- 31000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 8.0 pH 9.6 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS • GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS © © TRIP GAS CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG PENTANE (C -5) © © HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Attempt pressure points between 8679' and 8695' with zero success rate (tool could never seal on side of hole). Pull logging assembly out of hole and clean logging tool. Note no detectable problems with the tool. Run back in from surface with MFT logging assembly and take pressure points in both directions between 7579' and 8177'. Tool is briefly successful, but all later testing had zero success rate, with all points either failing to seal DAILY or being tight. Pull logging assembly back to the surface. Inspect, break and lay down logging tools on catwalk. Replace initial MFT tool in the ACTIVITY assembly with a back -up tool that has a smaller size extend arm pad . Pick up, make up and run back in hole with MFT logging assembly. MFT SUMMARY tool performs correctly inside casing. Run back down to open hole to successfully take pressures within "normal" success parameters with the replacement tool. Take pressure points in both downward and upward directions on a non - random precedence schedule between 8692' and 7595'. Pull out of hole with MFT logging assembly. Break down, lay down and load off logging tools. Rig down Weatherford Wireline Services sheaves, safety valve, lubricator and other surface running equipment. Clear and clean rig floor. Pick up and make up short clean out assembly (bit, bit sub and crossover) to first stand of HWDP. Run in hole with 5" HWDP (plus jars) to 663'. Continue running in hole with 5" drill pipe from 663' (to 1228'). EPOCH PERSONNEL ON BOARD 3 DAILY COST ML: 3015 RW: 635 Consulting: 1300 REPORT BY Craig Silva • 0 Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 04, 2008 DEPTH 9068 PRESENT OPERATION Running in hole with EXCAPE completion string TIME 24:00 YESTERDAY 9068 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 6RR1 8.5 HTC MXC -1 6054215 3x29 9068 9068 0 n/a 1- 1- NO- E- 1 -NO -TD Clean out run only DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9068 / 8678 TVD MW 9.6 VIS 56 PV 15 YP 20 FL 5.5 Gels 7/14/15 CL- 30000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 9.0 pH 10.0 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS II GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 104 @ TG at 9068 2 @ at pump shut down 22 circ and cond TRIP GAS 104 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue running in hole on clean out run from 1228' to 8934'. Wash down from 8934' to bottom at 9068'. Circulate bottoms up. Record 104 units of trip gas. Circulate, clean and condition hole. Check for flow. Pump dry job. Blow down mud lines and flush mud pumps. Pull out of hole (25 stands) from 9068' to 7416'. Pull out of hole laying down 5" drill pipe from 7416' to 915'. Run back in hole with all drill pipe remaining in derrick (27 stands) from 915' to 2687'. Pull out of hole laying down 5" drill pipe from 2687' to 663'. Pull out of hole to surface laying down 5" HWDP and jars. Break and lay down clean out assembly (crossover, bit sub, bit). Pull wear bushing. Lay down make up tongs. Rig down and load off all rig floor bit DAILY subs, drill pipe tools, rotary tools, spinners, and tongs. Clear and clean rig floor. Prepare for highline operations running in EXCAPE production ACTIVITY modules and tubing. Pull wear ring. Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling SUMMARY tools and accessory equipment. Install fill -up tool. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull down to floor and tie off the 3 control lines and a protector dummy line. Rig up Pollard Wireline Service to perform banding of control lines. Inspect and insure that previously staged out modules are in correct order on short pipe rack. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. Begin running in hole with 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract with Davis Lynch Float Shoe and Float Collar. Check floats. Carefully pick up, make up and continue running in hole the lowermost 3 1/2" completion section with 2 EXCAPE modules (plus 3 pups) to 512'. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2645 RW: 635 REPORT BY Craig Silva IP Marathon Oil Company Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 05, 2008 DEPTH 9068 PRESENT OPERATION Waiting on cement, prepping stack for nipple down TIME 24:00 YESTERDAY 9068 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" © 7447' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9068 / 8678 TVD MW 9.7 VIS 56 PV 15 YP 20 FL 5.6 Gels 7/14/15 CL- 30000 FC 1 SOL 8.5 SD Tr OIL 4/88 MBL 8.0 pH 9.7 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 25 @ TG at 9042 1 © at displacement shut down 12 displacing TRIP GAS 25 CUTTING GAS © © WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) © @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) © @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Continue running in hole with EXCAPE completion string. Carefully pick up, make up and run in hole the remaining 3 1/2" completion section with 5 more EXCAPE modules (7 modules total plus 9 pups and a flapper removal tool) to 1531'. Briefly circulate and fill pipe. (Note inhibitor was slowly increased in the mud system in the 48 hours before cementing commenced). Continue running 3 1/2" EXCAPE completion string in hole from 1531' to 9042'. Rig up circulating head and line. Begin circulating, bringing pumps up slowly. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Circulate 3745 strokes (at 725psi, 100spm, 200gpm) Stop pumping and check for flow. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine perforating positions of EXCAPE modules. Log up and pull out of hole with wireline gamma tool assembly. Do correlation determination with gamma log. Note that the DAILY the shoe will be adjusted down 13.50' to 9051.69'. Rig down Expro WLS. Rig up circulating line and head. Resume circulating (at 750psi, 105spm, ACTIVITY 210gpm). Hold pre -job safety meeting with BJ on cementing procedures and safety for cement job. Circulate 4076 more strokes. Rig down SUMMARY circulating head. Rig up cementing head and line up to BJ cementers. Head will have plug installed and a wash -up tee. Pump 3.0 bbls of water to fill lines. Pressure test cementing lines to 3500psi. Mix and pump 40.0 bbls of 10.6ppg Sealbond Spacer, using 37.12 bbls of water. After sweep, pump 168 bbls of 15.8ppg cement slurry (802 sacks of Class G cement plus accelerator chemicals mixed with 95.0 bbls water to yield 4.975 gal /sk and 1.176 cuft/sk). Close valve to head and open wash -up valve. Pump 8 bbls water to wash lines from floor out to slop tank until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 2.0 bbs of KCL brine. Displace cement with 76.0 bbls of 6% KCI brine. (Total displacement is 78.0. bbls). Record maximum 25 units of gas while displacing. Bump plug with 1000psi over displacement pressure (2400psi total). No returns to surface. Bleed off. Check floats. Cement in place at 22:45 hours. Begin waiting on cement. Flush, blow down and rig down cementing head and lines. Lay down cementing head. Clear and clean rig floor. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1485 RW: 635 REPORT BY Craig Silva S Marathon Oil Company • Beaver Creek Field DAILY WELLSITE REPORT EPOCH BC 19 REPORT FOR John Nicholson / Dan Byrd DATE Oct 06, 2008 DEPTH 9068 PRESENT OPERATION Rig down operations TIME 24:00 YESTERDAY 9068 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 9052' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ © AMPS WEIGHT ON BIT @ © KLBS ROTARY RPM @ @ RPM PUMP PRESSURE © @ PSI DRILLING MUD REPORT DEPTH 9068 / 8678 TVD MW 8.6 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH 7.7 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS © @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) © @ CURRENT BUTANE (C -4) © @ CURRENT BACKGROUND /AVG PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTI ON LITHOLOGY PRESENT LITHOLOGY Flush and blow down all mud pumps and pump lines, choke and choke lines, mud manifold and all mud lines, and fill and trip lines. Flush and washout stack. Pump out and clean trip tank. Begin nipple down of riser, choke, and kill lines. Prepare stack for nipple down. Start pumping mud and other fluids out to vac trucks for haul -off. Rig down #3 mud pump. Begin loading up trailers and hauling non - essential equipment off to Kenai Gas Field. Begin cleaning pits. Lay down mousehole. Remove and load off drip pan. Begin loading out pipe and pipe racks. Continue partial rig - down procedures and loading off and transporting of non - critical rig and third party equipment and facilities. Clean up location as transport loads DAILY are hauled away. Rig down flow nipple, riser, choke line, kill line, fill -up line and tumbuckles. Rig down accumulator lines and panic line. Rig up ACTIVITY bridge cranes to BOP stack. Rig down standpipe manifold. Pick up BOP stack. Finish cleaning all pits and hauling off remaining fluids. Run control SUMMARY and electric lines out tubing head outlet. Set weight on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 3 1/2" casing. Run control lines through 3 1/2" packoff and terminate. Set and install packoff. Install Swagelok fittings around control lines. Run in lock -down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3 1/8" 5M tubing head adaptor to the 3 1/8" 5M tree, terminating control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Begin rig down and move of all Glacier No.1 rig modules, rig equipment, support trailers, communication equipment, camp trailers and camp accessory equipment to the KU 22 -6X location. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 1100 Rig Down: 1315 REPORT BY Craig Silva •