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208-139
• 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. Z OE - 1 3 9 Well History File Identifier Organizing (done) ❑ Two -sided 111 111111111 I 111 ❑ Rescan Needed 111 II1IIIII! III 111 RES AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: Greyscale Items: ❑Other, No/Type: ❑Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Date: vgi /s/ Project Proofing I piP BY: Maria Date: IP 0 /s/ Kr, Scanning Preparation c _ x 30 = 1 + a7 = TOTAL PAGES U 7 (Count does not include cover sheet) ,:p BY: Date: i /s/ Production Scanning III IIIIIIH fill Stage 1 Page Count from Scanned File: U (Count does include covers et) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: C11 1 I /s/ y Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. 1111111111111 IIIIJ ReScanned 1111111111 lIII BY: Maria Date: /s/ Comments about this file: Quality Checked III 1111 111 III III 10/6/2005 Well History File Cover Page.doc Page 1 of 3 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, October 16, 2008 3:04 PM To: 'Vaughan, Alex' Cc: Hazzard, Vance; Polya, Joe; Franks, James; Campoamor, Kathy Subject: RE: Current Oooguruk Well Status as of 10/16/2008 Alex, et al, Thanks much for the updated information. Looking at the information and cross checking our files, I only found one well that may need some paperwork filed; ODSN -39. If no activity is likely on this well until springtime, it is appropriate for Pioneer to file a 404 with attachments for the operational SD as was done with K -35, K -36 and N- 34. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC From: Vaughan, Alex [mailto:Alex.Vaughan @pxd.com] Sent: Thursday, October 16, 2008 2:09 PM To: Maunder, Thomas E (DOA) Cc: Hazzard, Vance; Polya, Joe; Franks, James; Campoamor, Kathy Subject: Current Oooguruk Well Status as of 10/16/2008 Tom, Well Name PTD Completion Date- Comment Status ODSDW 01-44 207 -140 1/27/2008 Active Disposal Well ODSK -35 207 -181 2/12/2008 Surface Casing Set ODSK -36i 207 -182 2/4/2008 Surface Casing Set ODSK -33 207 -183 4/29/2008 Active Kuparuk Producer ✓ ODSN -34i 207 -184 2/17/2008 Surface Casing Set ODSN -31 208 -003 n/a Not Spudded ODSN -32 208 -004 n/a Not Spudded ODSN -40 208 -039 8/1/2008 Active Nuiqsut Producer v ODSN -39i 208 -040 5/7/2008 Surface Casing Set ODSN -45i 208 -100 10/15/2008 Intermediate Casing Set, temporarily abandoned, likely to be side tracked --iT ODSN -43 208 -139 n/a Not Spudded ODSK -41 208 -147 n/a Not Spudded, Spud 10/16/2008 ODSK -38 208 -148 n/a Not Spudded ODSN -37 n/a n/a Not Spudded The following is the current schedule as of 10/16/2008. We will be submitting the ODSN -37 Surface Casing Depth Change Sundry middle of next week. Drill Start Drill End Date Days Date 10/20/2008 Page 2 of 3 ODSN-45i - IN13 - S,I - AOGCC approved 812/240 74.0 ' 10/1 12008 ODSK -41 - Kup F (Horiz) - S 10115/2008° 6.4 : 10/21/2008.: ODSK -38i - Kup D (Slant) - S 10/21/2008' 5.8 ° >Ot27/ ;, ODSN -37 -PN8 - S 10/27/20Q8 5.7 11/2/2008 ODSK -38i - Kup D (Slant) - P,C 11/2/2008 15.1 11/17/2008 ODSN -37- PN8 - I 11/17/2008 13.0 11/30/2008 ODSK -41 - Kup F (Horiz) - I,P,C 11/30/2008 32.9 1/2/2009 Alex Vaughan Operations Drilling Engineer PIONEER NATURAL RESOURCES 907.343.2186 (office) 907.748.5478 (mobile) 907.343.2190 (fax) From: Polya, Joe Sent: Wednesday, October 15, 2008 4:38 PM To: Vaughan, Alex Subject: FW: Current Oooguruk Well Status - Again Alex, Please review the attached and lets make ourselves a duplicate spreadsheet whereby we can track and ensure that we have all the applicable permits submitted and approved for our various wells in their array of stages toward completion. 744444, P ele V a Pioneer Natural Resources Alaska, Inc. Sr. Staff Drilling Engineer joc.polya!ai:,pxd.com Main Office: (907) 277 -2700 Direct: (907) 343 -2111 Fax: (907) 343 -2192 Mobile: (907) 244 -0668 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, October 14, 2008 10:01 AM To: Maunder, Thomas E (DOA); Polya, Joe Subject: RE: Current Oooguruk Well Status - Again Joe, I know you have been busy with ODSN -45, but I would appreciate if you or one of your staff could fill out the table below. Thanks in advance. Tom Maunder, PE AOGCC 10/20/2008 • Page 3 of 3 • From: Maunder, Thomas E (DOA) Sent: Friday, October 03, 2008 12:00 PM To: Polya, Joe Subject: Current Oooguruk Well Status Joe, As you know, I am reviewing the permit applications for ODSK -41 and -38. In the course of that review, I have prepared a list of the permits issued to date for the Oooguruk project. I realize that Pioneer has encountered drilling difficulties that have resulted in halting operations on some of the wells. Also, halting operations was planned due to the seasonal drilling restriction for some of the Kuparuk wells. Would you or one of the engineers complete the following table for the ODS wells? I have included the information I have available. It is possible that I have not seen all the paperwork that has been filed. I am particularly interested in wells that have been spudded and then operations halted. I expect that we will exchange a few messages to get things all filled out. CaII or message with any questions. Tom Maunder, PE AOGCC Well Name PTD Completion Date- Comment Status ODSDW 01 -44 207 -140 1/27/08 WDSP1 ODSK -35 207 -181 ODSK -36 207 -182 ODSK -33 207 -183 4/29/08 1 -oil Initial production well. ODSN -34 207 -184 ODSN -31 208 -003 ODSN -32 208 -004 ODSN -40 208 -039 8/1/08 1-oil ODSN -39 208 -040 ODSN -45 208 -100 ODSN -43 208 -139 ODSK -41 208 -147 Permit under review ODSK -38 208 -148 Permit under review Statement of Confidentiality: This message may contain information that is privileged or confidential. If you receive this transmission in error, please notify the sender by reply e -mail and delete the message and any attachments. r 10/20/2008 III • y , u i f ;T � rc L /l (- ° 11 U L i T r' SARAH PALIN, 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 Joe Polya Sr. Staff Drilling Engineer Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 600 Anchorage, AK 99501 Re: Oooguruk Field, Oooguruk- Nuiqsut Oil Pool, ODSN -43 Pioneer Natural Resources Alaska, Inc. Permit No: 208 -139 Surface Location: 2899' FSL, 1166' FEL, SEC. 11, T13N, R7E, UM Bottomhole Location: 1760' FSL, 3403' FEL, SEC. 9, T13N, R7E, UM Dear Mr. Polya: 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, / Cath P. Foerster Commissioner DATED this � v day of September, 2008 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. "'tt LIVLU STATE OF ALASKA SEP 0 3 2008 ALA* OIL AND GAS CONSERVATION COMA, CO PERMIT TO DRILL Alaska Oil & Gas Cons. Commission 20 AAC 25.005 Anrfhnrary 1a. Type of Work: 1b. Current Well Class: Exploratory ❑ Development Oil 0 1c. Specify if well is proposed for: Drill 0 Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas ❑ Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone 0 Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket In Single Well ❑ 11. Well Name and Number: Pioneer Natural Resources Alaska Inc Bond No. 103655283 ODSN -43 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 700 G Street, Suite 600 Anchorage, AK 99501 MD: 22,837' • TVD: 6,187 • 4a. Location of Well (Governmental Section): 7. Property Designation: Oooguruk - Nuiqsut Oil Pool Surface: 2899' FSL, 1166' FEL, Sec. 11, T13N, R7E, UM • ADL 355036 / ADL 355037 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1243' FSL, 3145' FEL, Sec. 15, T13N, R7E, UM 417497 9/15/2008 Total Depth: 9. Acres in Property: 14. Distance to Nearest 1760' FSL, 3403' FEL, Sec. 9, T13N, R7E, UM 5760 + 5724 = 11,484 >,9 Property: 7,522' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation A a' i t• - 1 5. Distance to Nearest Well Surface: x- 469831.70. y- 6031015.46 • Zone- ASP 4 (Height above GL): 91 ' et Within Pool: N/A 16. Deviated wells: N/A Kickoff depth: 300' feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 98.03 degrees Downhole: 3132 psig • Surface: 2455 psig - 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) 24" 16" 109# H -40 Welded 109' Surface Surface 153' 153' Driven 13 -1/2" 10 -3/4" 45.5# L -80 BTC 4942' Surface Surface 5000' . 3307' • 520 sx Permafrost 'L'; 680 sx Class 'G' 9 -7/8" 7 -5/8" 29.7# L -80 BTC -M 14718' Surface Surface 14776' . 6155' • 295 sx Class 'G' ( o 3 I' 0t l‘No\c. ly 3 cts3 (0%SS G\ `Z r..o �E/ 91,11 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 ❑ BOP Sketch pi Drilling Program Ei Time v. Depth Plot ❑ Shallow Hazard Analysis ❑ Property Plat 12 Diverter Sketch El Seabed Report ❑ Drilling Fluid Program El 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Joe Polya, 343 -2111 Prepared By: Kathy Campoamor, 343 - 2183 Printed Name Joe Polya Title Sr. Staff Drilling Engineer Signature" Phone 343 -2111 Date 9/2/2008 I Commission Use Only Permit to Drill API Number: ��, �� rr��pp Permit App oval See cover letter for other 0 Number: ? "� 50- ? 20 OZ'c.A Date: i 0 requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales:2 Other: �sc� C "\ %o •l e..s�e�„ `Clar1\�� , Samples req'd: Yes❑ No❑✓ ` Mud log req'd: Yes❑ No2 H measures: Yes Nog Directional svy req'd: Yes[ No❑ ki 1- $.1��)tao Ni ta-s,C 'SS (l 1• V \-) N-Q_ �S. <c C CD,c�<tAykul \t% C1 Q 4k,C \AVIZT■CQ. 9 c k \ t y■ I ZSA ' CsQ VIZSZe.) - APPROVED BY THE COMMISSION DATE: (9- Q 8 /"''et , COMMISSIONER Cif4 Form 10 -401 Revised 12/ N Submit in Duplicate _ z�� • • PIONEER NATURAL RESOURCES September 2, 2008 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite #100 Anchorage, AK 99501 RE: Application for Permit to Drill ODSN -43 Surface Location: 2899' FSL, 1166' FEL, Sec 11, T13N, R7E, UM • X = 469831.70, Y = 6031015.46, ASP4 Pioneer Natural Resources Alaska, Inc. (PNRA) hereby applies for a Permit to Drill a production well from the Oooguruk Drill Site (ODS) located within the Oooguruk Unit. The well is designed to be a production well in the Oooguruk - Nuiqsut formation. PNRA requests the permit to drill based on approved Pool Rules. As indicated in the attachments, the drilling program will entail drilling a directional 13 -1/2" surface hole to approximately "5000' MD / 3307' TVDrkb, where surface casing will be set. A 9 -7/8" directional wellbore will be drilled into and set at the top of the Oooguruk - Nuiqsut interval at approximately 14776' MD / 6155' TVDrkb. The horizontal production interval will be drilled to approximately • 22838' MD / 6187' TVDrkb, the final TD of the well. The proposed casing program will utilize 10 -3/4" surface casing, 7 -5/8" intermediate casing and an open hole completion of the 6 -3/4" hole section. The completion will utilize 2 -7/8" tubing and an ESP. PNRA plans to implement a system called Managed Pressure Drilling (MPD) while drilling the intermediate hole and the horizontal production hole of ODSN -43.• At present, PNRA does not intend on drilling with a mud weight lower than the pore pressure of the exposed formations. PNRA plans to use this technique while drilling the intermediate interval as outlined below. • From the Surface Shoe to below the Base of the Torok Sands o Use -9.2 to 10 ppg fluid while using MPD to control pressure from the surface to -10.5 ppg EMW at the bottom of the hole. ■ Open formations: 700 G Street, Suite 600 - Anchorage, AK 99501 - MAIN 907 - 277 -2700 - FAX 907 - 343 -2190 Alaska Oil & Gas Conservi n Commission 1 September 2, 2008 Page 2 of 4 • Torok Sands, -8.7 ppg Pore Pressure • From the base of the Torok Sands to Intermediate Hole TD o Use -10.0 to 11.0 ppg fluid while using MPD to control pressure from the surface to -12.5 ppg EMW at the bottom of the hole. • Open formations: • Torok Sands, -8.7 ppg Pore Pressure • Kuparuk Sands, -9.8 ppg Pore Pressure • • Nuiqsut Sands, -9.7 ppg Pore Pressure PNRA plans to use this technique while drilling the production interval as outlined below. • From the Intermediate Shoe to TD o Use -9.8 ppg fluid while using MPD to control pressure from the surface to -10.1 ppg EMW at the bottom of the hole during connections and while tripping • Open formations: • Nuiqsut Sands, -9.7 ppg Pore Pressure The following documents are attached to this letter and Permit to Drill request: • Flowchart of the MPD system • Procedure of how to change the element in the `rotating head' to maintain well control • Decision Tree for handling a well control event • Data illustrating operational experience from the service provider, Halliburton Utilizing the MPD process allows PNRA to reduce the materials needed for the well and increase the overall safety of the personnel on the development by having less material to handle. Unlike other wells in the Oooguruk Development, it is planned to drill and complete this well in entirety. In the future, PNRA may provide information requesting the permitting of annular disposal of drilling wastes on this well. Based on information previously submitted to the AOGCC and included in the AOGCC Oooguruk Field File, PNRA requests an exemption from 20 AAC 25.035 (c) which requires a diverter system be installed on the well while drilling the surface interval. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: Alaska Oil & Gas Conserv", Commission • September 2, 2008 Page 3 of 4 1) Form 10 -401 Application for Permit to Drill per 20 AAC 25.005 (a). 2) A plat showing the surface location proposed for the well per 20 AAC 25.005 (c) (2). 3) A copy of the proposed drilling program per 20 AAC 25.005 (c) (13) including: a. The drilling fluid program as required by 20 AAC 25.033 b. Complete logging and mud logging operations are planned and descriptions are attached. c. A complete proposed casing and cementing program is attached as per 20 AAC 25.030. d. A description of the procedure for conducting formation integrity tests per 20 AAC 25.035 (c) (5). e. A summary of the drilling operations. f. A summary of drilling hazards per 20 AAC 25.005 (c) (4). g. A wellbore schematic is also attached visually depicting the proposed well. 4) A copy of the Planned Directional Well Path — including travelling cylinder and development layout plots 5) Diagrams and descriptions of the BOP and diverter equipment to be used on Nabors Alaska Rig 19 -AC as required by 20 AAC 25.035 (b) and (c). 6) PNRA does not anticipate the presence of H2S in the formations to be encountered in this well. However, H2S monitoring equipment as specified in 20 AAC 25.065(1) will be functioning on the rig as standard operating procedure for all wells drilled by that rig. Products for treating H2s contamination in the drilling mud system will be maintained on the ODS. 7) MPD information as referred to above • Flowchart of the MPD system • Procedure of how to change the element in the 'rotating head' to maintain well control • Decision Tree for handling a well control event • Data illustrating operational experience from the service provider, Halliburton Alaska Oil & Gas Conservn Commission September 2, 2008 Page 4of4 The following are PNRA's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Joe Polya, Senior Drilling Engineer (20 AAC 25.070) 907/343 -2111 joe.polya a(�,pxd.com 2) Geologic Data and Logs Doug Waters, Operations Geologist (20 AAC 25.071) 907/343 -2133 douq.watersapxd.com The anticipated spud date for this well is September 26, 2008. If you have any questions or require further information, please contact Joe Polya at 907/343 -2111. Sincerely, T A : \Th Jbe Polya Senior Drilling Engineer Attachments: Form 10 -401 Supporting permit information cc: ODSN -43 Well File • . t • . • . r. Legend t • • i � Illy '.i 1 40 —Dint Condu°tot - , • . y( » • T; f w q N • • • : i • Y , o • ° ; -.• • Location 'Map ,., • ; ." • • GRAPHIC BCAIS 41' • 30 is o 30 •; • 4% : + .017,'N11t1 1 • •- OF q/.Q�11. ik . t • mr 1 .�� • /, • • •y� • • v !h ' � P ;� ; ÷ 9 ti • c 1.... i.. /' • i iiik • = OP • 1 .. • • , • • • , L ' Uip G. Do o 0 • • 1 � �}. •• No.41105 �'% 4 • 1 e " • ' r' SJ� r % 'P P • "r 1 * Q OFesslONA0 " . • • • h . • • . ,t if . .111 4, . • • • • • am. IIR ' i ‘iv '. I • j a1 Plon..r Natural R..ouo•• JOB NAME: Oobquruk Drill Slto DRAWN BY: at 'CHECKED BY: 11.A LOCATION: Pr*Uoot•d 1i•oUon ,11 • SCALE: Y -3U' Ml • • To.np 13 North . Rang. 7 Eo.t'• t I DATE: 7 - - - . umwt M.n aion (t . Not.•: r, I NANUQ JOB NO. SHEET • • Coordinot•• ar. MYt d on sheets 3 and 4{ DESCRIPTION : . • Alaska Nod 27. Zon, 4 Conductor A. —till! P ! 05204 1 of 4 . i • 0 • n .. I - --1 .... 1 i 0:7 1 J , t �X 1 1= I • 1 I •• \Tirtrki Fart • a• OO7E SE orner o i • OCriIR UK 9 t Protrocted Section 11 1 • s. "€e x J) e s . a ; � Coordinates 1 � 4 � N 6028111.04 Ci I I E 4/* •••.• • I_ .1. PJ...2 Ref•. AK ELM = ' I .. �� ` � i i Harrison; Boy .Troc•'A' I 1� _ L4\ Rf f. ircwl . I. ♦ a Y ID f . a► 1 .�j� p �2 •' a . F1-)1V � • ?- y �• . • Ctb!tofe • Icerui �cc �tb� ♦ •11-1J n PI 20 t - Dar c_•r.JY Di. • 1 • I. . �1tyl a a �1 . • \ q 7. A � lt ` ' o►-r7 . t►mrb oe a Iaer T . DS 301 •BMA • s a _ .. � ° 1 PM f . - . Y . floc& tvG a . r p r,. - .:1 PI , ', , Pi-if � �'` _ II - ( .. A p oa l Basis of Locotion iiit r f Rai, Xcc � l � .r DS -3H West Monument t r . Co ordinates • Ar � ,. „ 3,+- .. N 6001016.61 t� r - • _ . . _ E 498081.23 , - PI INFORM ' lON ONL p `? � - ti, . M _ . •' - -- L ....Ref..Lownsbury &Assoc. ... • t` Drowing No. ri . • ''' "� I -✓ NSK d672 _ [ Ili • w. ' •i� s�s� "w ii7E Ly . ,- tom+ ••••=z i+ • ► r / F es. zo= ` ..� w• . t S � S= ' . No.1110.5 ••• ' - ,- i i:V.i - ;v± , - t'O ,. 0..•...�•• b `- �'AS ` .42 A,. ow • `� *% °° i Pioneer Noturol Resouces JOB NAME: Ooogu Drill Site Conductors DRAWN BY: BL CHECKED BY: MJD LOCATION: Protracted Section 11 SCALE: N/A Township 13 North Range 7 East DATE: 7 -12 -07 Umiot Meridian NANUQ JOB NO. SHEET DESCRIPTION: • • Basis of Location 05204 2 of 4 • • • • ---- ------- AlgiXii . SlitiP1 - - ----- - - - ---- - --- ' - Sglio Ofk" - - . - --- ' - Weil - No, -- -...-- •.--.--:---- -1 - --- -- - --- ...?111 : • .7.enc.?,it. •.` • -- psi . pgi Y X I 6,Q$1,1n4 - 069,920,46 70 29 46,24160 - I.6 - 0 1 9055 — .10 - rill ---- 6,031,146 35 - 469,916,62 - 7 - 0 .. 29 46,19262 1N 900 1062 19,610 $------- 5,091,141,59 - 069,910,69 7025 4614544 1 14 0,7175 - : -107 7 16,60 6,09 069906,67 7 70 29 159 1446,69799 3020 1092 19.50 5 6,991,191,46 469,900,74 ' 70 29 06,04566 • 150 14 4504252 6015 1497 19,60 6 6,061,126,51 469,806.0 7029 45996 1446,16795 - 6010 1 ---- 6,091,119,75 0.69,669I5 4 46,67099 150 14 46 2.c..7 1115 1 6 6,091,106,79 469,676.21 70 29 , O,U1Q2 *1() 111 AVQ,1 2992 1120 9 6,091,106.76 469,87,26 70 29 45.77164 160 14 46.54614 2967 MM 19,60 • — IV -- 6,091,096,79 -- 469,666,9670 2945,72266 150 14 06,99170 -- 2962 7 116 - 0 - 19,60 --- If 6,091, 095, 64 469,80,:_39 - 70 29 45,67596 - 150 14 .47.19'760 2977 19,50 all....Lagn .M1111M.: _ En41_ 150 14 47.28'17 297 1140 -- I5:50 ITIM - 469:$4,61 70 29 . 14 47,662:66 - 2960 1152 16 NMI 6,991,07 469,540,6i - - 70 29 4,44992 160 2966 '1157 •15.60 — 75 - - 6A1,066,16 469,655,96 70 29 46,40066 - 150 14 0.94166 - 2960 1162 - 6,03t061 1e 469,591,0 - 70 29 45,56146 160 14 2945 1167 - 13,50 Mai 6,091,066,26 069;62511 70 2$ 05.90277 150 14 46,23042 2940 1172 16 - 6:09 069521W . 70 - 2905,2f.J569 16 1. ---- • 1177 • 13,50 19 6,091,096,62 069,606.60 70 29 05,1276 16 45:74666 2922 1189 2T) 40,097 70245 ,0761 1e014 40(.36f --- a 17 1194 19.60 MOS 6,091,028 ,3 • 40,796 70 24 160 10 4,09692 2912 1199 19,50 El 6,091,029,66 . - 469,799,67 70 2.9 40,95014 15014 49.18144 2907 N4 26 . 6091,016. --- 71(. -- 6. - 76 10 3 1 ; 1:4:4 - 9 - :62697 2902 , - 1209 19,50 • 24 ' 67,091,09 -- 059.769,6 - ii 70 29 00.66159 iN 14 2697. 1111::111 19,60 • • _ - - _ .. . • a•". OF 44 b it -------,--- ;ipw --11%-•÷Irk ...... ...........:.. . , ... . ily* di • i 9:rx 9 • , • --; - ---. .: • -:-.,---- • ' e , • Philip G. Dovis :5/ i ff i ; CPA 4 No 41104 '$' .i' "I' 4 - • ' •" * :::,,,, °-. --' .P:' ., ;.. _.k e_. Fa ,.... L;.7,- ::-. :It 41 ,.4-. l e P Roft" 117tv°1+-.. :..i...7;.s.f.:;i:•7,, '4 % , “7:.Z ■■=s". -tr: ivt-:.;.^7. ' 40 . Z.,. '":.... ' %,,, A \ A. , : l t" . .... '" ■•■••• ; NVI§S; - NS , . ..r: 1. • : ... , • ' ' , ' • ' • . ' - ' !:4 . ::i ' i .: f lt rit YglicM or bg*ed on EP kiwi $ LCYcl, 2, COcrdinott* or toeed on Alolko mote Pone Nod 27, Zone 4, 3, All condt.ictorl or within Protrocted Section 11, Pit)neer Nciturtdi Reg9uceg )O NAME: Opygvri„Jk vat it Condtors DRAWN E,3Y: EX CHECKED BY: MJD .0CATION: Prvtroct@d ,scctign 11 SCALE: N/A TowNhip 13 North . Ron9c 7 COrt DATE: 7-12-07 • Urniot Mcridion NI _,_ _________. _ — "NATC). 'NO, SHEET _______________..._ ESCRIPTION: A*-buili Coordinote$ 05204 3 of 4 • • • • _1'��11-1�1• Aleske Siete Plane • . _. Section Line Offset Y X ,t, - oPZii�dE T - FSL F ............ -f'-1 25 6,031,128.32 469,543.64 70 29 46.01630 51 0 14 44.77930 3013 1055 13.50 26 . 6,031,123.35 469,938.69 70 29 45:96722 150 14 44.92442 3008 1060 ' 13.50 27 6,031,118.33 469,933.76 70 29 45.91765 150 14 45.06895 • 300 • 1065 .13.50 28 6,031,113.39 469,925.86• 70 29 45.86887 150 14 45.21260 2997 1070 13.50 29.' 6,031,108.44 469,923.95 70 29 45.81999 r 150 14 45.35655 9' 1075 13.50 30 6,031,103.45 469,919.01 70 29 45.77071 1 150 14 45.50137 2988 1079 13.50, 31 6,031,090.65 469,906.38 70 29 45.64431 150 14 45.87163 2975 1092. 13.50 6,031,0E5.68 469,901.39 70 29 45.59523 150 14 46.01793 2970 _ 1097 13.50 6,031,080.67 469,896.50 70 29 45.54576 150 14 46.16128 2965 1102 13.50 MEI 6,031,075.73 469,891.57 70 29 45.49698 150 14 46.30581 2960 . 1106 13.50 • . 35 6,031,070.76 469,586.60' 70 29 45.44'289 150 14 46.45152 2955 . 1111 • 13.50 36 6,031,065.83- 469,881.69 70 29 45.39921 150 14 46 .59547 2950 1116 13.50 • • 4 , 3'170.,,,..: C9,8C9.:: - 0 - 29 - 45.27251 1-50-44-46-9-6U • * • 13. • 38 6,031;047.99 469,864.14 70 29 45.22304 150 14 47.10995 2932 1134 • 13.50 39 6,031,043.03 469,559.20 70 29 45.17406 150 14.47.25478 2927 • 1139 13.50 40 6,051,038.10 469,554.21 70 29 45.12537 150 14 47.40108 2922 .1144 13.50 • 41 6,031,033.05 469,849.29 70 29 45.07551 150 14 47.54530 2917 1149 13.50 42 6,031,028.13 469,844.38 70 29 45.02692 150 14 47.65925 2912 1154. 13.50 • 6,031,015.46 469,831.70 70 29 44.90180 150 14 48.06099 2699 1166 13.50 6,031,010.49 469,826.79 70 29 44.85272 150 14 48.20493 2E94_ 1171 • 13.50 6,031,005.53 469,821.86 . 70 29 44.80373 150 14 48.34946 2889 1176 13.50 46 6,031,000.54 469,816.94 70 29 44.75446 150 14 48.49369 - 2884 . 1181 13.50 Mal 6,030,995.50. 469,611.98 70 29 44.70469 150 14 48.63910 2879 1186 13.50 MIENI 6,030,990.58 469,807.07 70 29 44.65610 150 14 48.78304 2874 • 1191 • 13.50 • �� GI A� � �i SURVEYORS CERTIFICATE • • • K ......... 4 1 ---- o '� -.•l __ • '1, 2 .j_ 11 ____ I HEREBY CERTIFY THAT I AM • °'� • '9 T PROPERLY REGI57EFE[5'A - " / ' TN # LICENSED TO PRACTICE LAND � Q. r' •' • . � .•. SURVEYING IN THE ' I . E STATE OF _ ALASKA AHD THAT THIS PLAT , :a ` zi • r REPRESENTS A SURVEY DONE BY x y • t ali : Dora , � � � p is „ � G 41104 ..',,� ME OR UNDER MY SUPERVISION j' %a !1 ti•. _ AND THAT I BELIEVE THAT ALL 4or E„;lDNal ° ► DIMENSIONS AND OTHER DETAILS v- = r �` �� ‘1.w. . +�,--° . ARE CORRECT AS SUBMITTED TO .` Mv, ME BY NANUO. INC. AS OF JULY = 12TH, 2007. Pioneer Natural Resouces JOB NAME:' Oocouruk Drill Site Conductors DRAWN BY: BL 1 CHECKED BY: MJD. _OCATION: Protrocted Section 11 SCALE: N/A • Township 13 North • Range 7 East DATE: 7 -1207 • Umiot Meridian • • NANUQ JOB NO. SHEET ESCRIPTION: ' . As -built Coordinates 05204 4 of 4 • Oooguruk Well Plan Summary: Permit to Drill ODSN -43 — Nuiqsut Surface Location: 2899' FSL, 1166' FEL, Sec 11, T13N, R7E, UM ASP 4 (NAD27) projection X = 469831.70 Y = 6031015.46 Target: 1243' FSL, 3145' FEL, Sec15 , T13N, R7E, UM X = 462551.58 I Y = 6024112.52 I 6,155' TVDrkb Bottom Hole Location: 1760' FSL, 3403' FEL, Sec9 , T13N, R7E, UM X = 457033.0 Y = 6029938.7 I 6,187' TVDrkb AFE Number: 015630 Est. Start Date: September 15, 2008 Rig: Nabors 19AC Operating days: 57 days Drill and Complete TD: 22,837 MD / 6,187 TVDrkb Objective: Nuiqsut I Well Type (exp, dev, etc): Development Well Design (conventional, slimhole, etc): Slim hole — Producer — wp11 Current Mechanical Condition: Well Bay Footing / ODS Ground Level: Elevation above MSL: 13.5' RKB to Ground Level: 44' Rig Elevation: RKB + MSL = 57.5' Conductor: 153' MDrkb Well Control: Based on calculations below, BOP equipment will be tested to 4,500 psi. Surface Section: • Maximum anticipated BHP: 1487 psi @ 3307'TVDrkb (Based on seawater gradient of 0.4472 psi /ft) • Maximum surface pressure: 1123 psi @ surface (Based on BHP and a full column of gas from TD @ 0.11 psi /ft) Intermediate Section: • Maximum anticipated BHP: 3132 psi @ 6152' TVDrkb 9• a rej o ( %I,I / • Maximum surface pressure: 2455 psi @ surface d 0S (Based on BHP and a full column of gas from TD @ 0.11 psi /ft) Production Hole Section: • Maximum anticipated BHP: 3103 psi @ 6152' TVDrkb • Maximum surface pressure: 2426 psi @ surface (Based on BHP and a full column of gas from TD @ 0.11 psi /ft) Planned BOP test pressure: 3500 psi (annular to 2500 psi) Planned completion fluid: 10.2 ppg Brine /6.8 ppg Diesel Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 1 of 9 • • Diverter (see attached schematic) — Note: Requesting Diverter Exemption on a Well by Well Basis): Hydril 21 -1/4" 2M annular BOP 1 16" full opening knife gate valve, hydraulically actuated 16" diverter line 5000 psi BOP stack (see attached schematic): Hydril GK 11" 5M annular BOP Hydril 11" 5M single ram BOP w/ studded connections Hydril 11" 5M single ram BOP w/ studded connections Drilling cross 11" 5M x 11" 5M with 2 ea. 3 -1/8" 5M side outlets w /flanged connections 2 ea. 3 -1/8" 5M full opening inner manual gate valves mounted on drilling cross 2 ea. 3 -1/8" 5M full opening outer remote hydraulic controlled gate valves mounted on inner gate valves. Hydril 11" 5M single ram BOP w/ studded connections Formation Integrity Testing Requirements: Test Point Depth Test Type Minimum EMW 10 -3/4" Surface Shoe Rathole + 20' to 50' from 9 -5/8" shoe LOT 12.0 ppg 7 -5/8" Intermediate Shoe Rathole + 20' to 50' from 7" shoe FIT 12.5 ppg Drilling Fluids Program: Surface Hole Mud Properties: 13 -1/2" hole Spud Mud Viscosity Interval Density (ppg) (secs) YP PV 10 sec gel API FL Initial 8.8 150 -200 35 - 50 15 -25 10 — 15 unrestricted Final 9.2 -9.6 z 70 -100 25-35 15-25 10 — 15 <12 Intermediate Hole Mud Properties: 9 -7/8" hole LSND Viscosity Interval Density (ppg) (secs) YP PV MBT API FL Initial to Below 2 " 9.2 -10.0 (-10.5 40 - 60 15 - 25 15 — 20 < 12 6 - 8 Fault ppg via MPD) From Below 2 10.5 ( -12.5 ppg 40 — 60 15 - 25 20 - 30 < 15 3 — 5 (8 -10 Fault to TD via MPD) HTHP) Production Hole Mud Properties: 6 -3/4" hole MOBM Viscosity Interval Density (ppg) (secs) YP PV MBT API FL Initial 9.8 ✓ 40 - 60 15 - 25 15 — 20 0 <4 Disposal: Annular Infection: Currently not requested, but may be requested in the future. Cuttings Handling: All Class 2 solids will be processed on the Oooguruk Drill Site by the Grind and Inject facility in the Rig Support Complex and injected down the approved Class 1 / Class 2 disposal ' well, ODSDWI -44. Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 2 of 9 • • Fluid Handling: All Class 1 and Class 2 fluids will be processed on the Oooguruk Drill Site by the Grind and Inject facility in the Rig Support Complex and injected down the approved Class 1 / Class 2 disposal well, ODSDWI -44. Hydraulics: Surface Hole: 13 -1/2" Interval Pump Drill Pipe AV Pump ECD ppg- Motor Jet Nozzles TFA (in GPM (fpm) PSI emw ( "/32) Surf to BPRF 750 5" 19.5# 115 2100 9.6 N/A 16,16,16,12 .7 BPRF to TD 750 5" 19.5# 115 2400 9.8 N/A 16,16,16,12 .7 Intermediate Hole: 9 -7/8" Interval Pump Drill Pipe AV Pump ECD ppg- Motor Jet Nozzles TFA (in GPM (fpm) PSI emw ( "/32) Surf Shoe to 650 5" 19.5# 209 2500 9.8 N/A 6x16 1.18 Base of Torok Base of Torok 650 5" 19.5# 209 3600 11.3 N/A 6x16 1.18 to TD Production Hole: 6 -3/4" Interval Pump Drill Pipe AV Pump ECD ppg- Motor Jet Nozzles TFA (in GPM (fpm) PSI emw ( "/32) Int Shoe to TD 275 4" 15.7# 216 3750 11.8 N/A 3x16 0.589 Formation Markers: TVD Pore Press. EMW Formation Tops MD Comments (rkb) (psi) (ppg) Base Permafrost 1643 1607 Top West Sak 2472 2302 1041 8.7 Base of fluvial sands Hue Shale 3437 2842 Tuffaceous Shales 3678 2921 Top Torok Sand 10798 4 2261 8.7 Top of Disposal Zone Base Torok Sand 11524 5209 Base of Disposal Zone Top HRZ 13112 5672 Base HRZ 13502 5786 Kalubik Marker 13855 5888 Top Kuparuk C 14109 5962 3038 9.8 Base Kuparuk C 14109 5962 Top Nuiqsut 14762 6152 3103 9.7 Base Nuiqsut (heel) 15741 6252 Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 3 of 9 • • Logging Program: 13 -1/2" Section: Drilling: Mud logging ✓ Dir / GR Open Hole: N/A Cased Hole: N/A 9 -7/8" Section: Drilling: Mud logging ✓ Dir / GR / Res / Dens / Neut / PWD Open Hole: N/A Cased Hole: N/A 6 -3/4" Section: Drilling: Mud logging ✓ Dir / GR / Res / Dens (Azm) / Neut / PWD Open Hole: N/A Cased Hole: N/A Casing Program: Hole Casing / Weight Grade Conn. Casing Csg/Tbg Top Hole Btm Size Tubing Length MDrkb/TVDrkb MDrkb/TVDrkb 24" 16" 109# H -40 Welded 109' Surface 153' / 153' 13 -1/2" 10 -3/4" 45.5# L -80 BTC 4942' Surface 5000' / 3307' 9 -7/8" 7 -5/8" 29.7# L -80 BTC -M 14718' Surface 14776' / 6155' Tubing 2 -7/8" 6.5# L -80 IBT -M 14718' Surface 14776' / 6155' Casing Properties Size Weight Grade ID Drift ID Conn. Internal Collapse Tensile Strength Yield (psi) (psi) Joint Body 16" 109# H -40 14.67" 14.5" Welded Conductor casing 10 -3/4" 45.5# L -80 9.95" 9.794" BTC 5210 2470 1063M 1063M 7 -5/8" 29.7# L -80 6.875" 6.75" BTC -M 6890 4790 683 M 683 M Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 4 of 9 Cement Calculations: Casing Size: 1 10 -3/4" Surface Casing - single stage Basis: Lead: 75% excess over gauge hole in permafrost + 50 bbls, 30% excess over gauge hole below permafrost Lead TOC: Surface Tail: 500' of open hole with 30% excess, plus 85' shoe track Tail TOC: 3430' MD (500' MD above the approximate set depth of the previous surface casing strings - set at approximately 2995' TVDrkb) 1 Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 10.0 ppg Dual Spacer Lead 384 bbls / 520 sx of 10.9 ppg Type "L" Permafrost Cement. 4.15 cf /sk, 20.0 gps water req. Tail 140 bbls / 680 sx of 15.8 ppg Premium "G" + adds. 1.16 cf /sk, 4.97 gps water req. Displ 464 bbls Mud Temp BHST -55° F, BHCT -60° F estimated During drilling operations, should hole conditions indicate that we will have trouble getting cement to surface, a TAM Port Collar may be run in the casing string and a staged cement job will be performed, if needed. In the event that cement is not circulated to surface during the initial surface casing cement job, notify the AOGCC of the upcoming remedial cement work for possible witness of cement to surface. Casing Size: 1 7 -5/8" Intermediate Casing - single stage Basis: Tail: 1167' of open hole with 30% excess, plus 85' shoe track Tail TOC: - 13609' MD (1167' above the shoe) - 500' MD above the top of the Kuparuk Total Cement Volume: Preflush 10 bbl water Spacer 40 bbl 11.5 ppg Dual Spacer Tail 62 bbls / 295 sx of 15.8 ppg Premium "G" + adds. 1.18 cf /sk, 5.18 gps water req. Displ 671 bbls mud Temp BHST - 165° F at 6100' TVDrkb, -135° F BHCT This well is outside the 1/2 mile radius around the disposal well at the intersection with the Torok disposal zone Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 5 of 9 i • Pioneer Natural Resources Well Plan Summary Drilling Operations Pre -Rig Work 1. 16" Conductors have been set and the Well Bay modules have been placed. 2. The Oooguruk Drill Site Class 1 / Class 2 Disposal Well, ODSDW1 -44, has been drilled and commissioned for disposal. Rig Activity: Drill and Complete 1. MIRU Nabors 19AC over pre - installed 16" conductor casing. 2. Nipple up spacer spools and riser. Note: In the cover letter for this permit to drill request, a diverter waiver is also requested based on information turned in previously. 3. MU 13 -1/2" Directional Drilling, MWD /LWD assembly. Drill surface hole to the casing point at - —5000' MD / 3307' TVDrkb, making wiper trips as necessary. Circulate and condition the hole to run casing. POOH. 4. Run and cement the 10 -3/4 ", 45.5# surface casing Note: A Port Collar may be run based on hole conditions at Company Rep discretion. 5. Ensure floats are holding. WOC if needed. 6. ND Riser, NU BOPE and test. Test BOPE to 250/3500 psi 7. Close blind rams and test 10 -3/4" casing to 3500 psi for 30 minutes -- chart and send to Operations Drilling Engineer. 8. MU 9 -7/8" directional drilling, MWD /LWD assembly. RIH and cleanout the casing to landing collar. Displace the well over to intermediate hole drilling fluid. 9. Drill 9 -7/8" intermediate hole to casing point at —14776' MD/ 6155' TVDrkb. • Note: Perform short trips at 1500' intervals or every 12 hours, which ever comes first to gauge hole conditions. Short trip frequency can be reduced or extended based on results of each subsequent short trip. At TD make a wiper trip to the surface casing shoe. Circulate and condition the drilling fluid to run casing. POH standing back some of the 5" DP and LD the rest of the 5" DP or per the pipe management plan yet to be developed by core rig team on location. 10. Change one set of pipe rams to 7 -5/8" and test BOPE as required. 11. Run and cement the 7 -5/8 ", 29.7# intermediate casing. Bump the plug and increase the pressure to 3500 psi for 30 minutes, chart and send same to Operations Drilling Engineer. Release pressure and ensure floats are holding. Note: If plug is not bumped, the casing will be tested by closing blind rams after BOPE Test. 12. PU, RIH and rack back enough 4" DP to drill to production hole TD minus the amount of pipe that will be picked up while RIH with BHA to drill float equipment. 13. Change pipe rams to 4" and Test BOPE to 250/3500 psi — Notify AOGCC 48 hours in advance of test. 14. MU 6 -3/4" directional drilling, MWD /LWD assembly. RIH with BHA on 4" while PU singles and cleanout to landing collar. 15. Drill out shoe tract, cement, rat hole and 20' of new formation below 7 -5/8" shoe. Pull the bit back into the 7 -5/8" casing and perform an FIT. 16. Displace the well over to production hole drilling fluid. 17. Drill the 6 -3/4" production hole to TD at — 22838' MD/ 6188' TVDrkb. At TD circulate and condition while displacing the open hole lateral to clean drilling fluid system. POOH. 18. MU 6 -3/4" Cleanout BHA and cleanout to the 7 -5/8" casing shoe. Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 6 of 9 • • 19. Displace the well over to 10.2 ppg Brine. POH. 20. MU completion with ESP and RIH. 21. Land the tubing and RILDS. 22. Drop ball and rod and allow to seat. Pressure test the tubing to 3,500 psi — chart and hold for 30 minutes. Bleed off pressure and then pressure test the annulus to 3,500 psi — chart and hold for 30 minutes. Bleed off pressure. 23. Install TWC. 24. ND BOPE, NU tree and test to 5,000 psi. 25. Pull TWC. 26. RU Slickline and pull the Dummy Valve from the upper GLM. 27. Reverse circulate corrosion inhibited brine and diesel to freeze protect the well to —2000' TVD and allow to u -tube. 28. Pull the ball and rod and pull the RHC -m plug with Slickline 29. RD Slickline. RDMO to next well. Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 7 of 9 MEM • • Casing Shoe Leak Off Test Procedure: 1. After testing BOPE, pick up the drilling assembly and RIH to the float collar. Circulate to consistent mud weight and rheology. 2. Shut in with the pipe rams and test the casing to the required test pressure. Record the volume of mud required and the corresponding pressures in 1 /4 bbl increments. When the design pressure is reached shut in the well and record the shut in pressure for 30 minutes. 3. Bleed off pressure while taking returns to a calibrated tank and record volume recovered. 4. Drill out the shoe track. Drill 20 ft of new hole and circulate the hole clean with consistent mud weight in /out. Pull up into the casing shoe. 5. Perform a Leak Off Test (or Formation Integrity Test): • Calculate the required test pressure to reach leak off (or formation integrity test limit) with the actual mud weight and the estimated fracture EMW. • Plot the casing test data and the calculated leak off on appropriate scale coordinate paper. As a guide, use the data from the casing test to determine the approximate volume of mud required to reach the calculated LOT /FIT. • Shut the well in. R/U the test pump. • Bring the pump on line at 0.25 — 0.50 bpm. Maintain a constant rate. • Record the pressure for every 1/4 of a bbl pumped. • Continue pumping until the pressure vs. volume curve breaks over indicating leak off. Note: For FIT, do not take to leak off • Discontinue pumping and shut in the well. Record the shut in pressure in 1 minute increments for 10 minutes or until pressure shows stabilization. • Bleed off the pressure and record the volume of mud recovered. • Plot the data to determine the LOT /FIT pressure at the shoe as EMW. • Submit the test results to the Pioneer drilling engineer for distribution as required. Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 8 of 9 • • ODSN -43 Drilling Hazards and Contingencies POST THIS NOTICE IN THE DOGHOUSE Well Control • Prior to drilling into the Kuparuk, hold a pre - reservoir meeting to outline heightened ' awareness and kick detection. o Following the Kuparuk penetration, pick up off bottom, shut off the pumps and perform a flow check to verify there isn't any overpressure. To date, no increase in pressure has been seen. Hydrates and Shallow gas • No hydrates are expected in this area. ✓ Lost Circulation /Breathing /Formation Stability /Stuck Pipe Events • Breathing may be seen while drilling the Hue shale. Minimizing swab and surge on the formation is critical to reducing the impact of breathing in the wellbore. Breathing was seen in the ODSN -40 well, but only after substantial time in trying to solve the lost circulation problems in the faults seen in and below the Torok Sands. • Lost Circulation was seen in drilling with MOBM in the abandoned wellbore of ODSN -40. The losses continued after swapping the intermediate hole drilling fluid over to SWBM. At this time, assume that any faults drilled in the intermediate hole will have lost circulation issues and follow the Decision Tree as required. • During the attempt to retrieve a fish from the ODSK -33 well, an un- centralized BHA got stuck from differential sticking across the Torok due to theIhcrease in mud weight needed to hold back the shales below. Differential sticking indications were not noted with the drilling BHA and drill pipe. In any event, keep the pipe moving and avoid allowing the pipe to remain stationary any longer than necessary to minimize the chances of differential sticking. • There is a small section of formation above the Top of the HRZ that is volcanic in nature (TUFFS) and can either have "glassy" material, swelling clays or both while drilling, which produced a pack off on ODSK -33 and ODSN -45. During the sidetrack of ODSK -33, this zone was not problematic. In any case, close attention while drilling this interval is advised. Kick Tolerance /Integrity Testing Kick Tolerance / Integrity Testing Summary Table Maximum Influx Mud Exp Pore Casing set / Interval Min LOT / FIT Volume Weight Press 10 -3/4" Surface / 9 -7/8" hole Infinite 9.2 2261 12.5 ppg (LOT) to the Torok Sands 10 -3/4" Surface / 9 -7/8" hole 206 bbls 10.5 3038 12.5 ppg (LOT) to the Nuigsut Sands 7 -5/8" lnterm / 6 -3/4" hole Infinite 9.8 3103 12.5 ppg (FIT) NOTE: All LOT / FIT will be taken with a minimum of 20 -ft and a maximum of 50 -ft of new hole drilled outside of the previous casing string Hydrogen Sulfide • The Oooguruk Drill Site is not designated as an H site, however Standard Operating / Procedures for H precautions should be followed at all times. Faults • 2 seismically visible faults are expected to be crossed and sub seismic faults with throws <25' may be encountered. Losses may be associated with these faults. Fault Location MD TVDrkb Throw Direction Uncertainty Intermediate Hole 9230 4541 -.45' Down to the East +/- 300' MD Intermediate Hole 11972 5340 -10' Down to the East +/- 300' MD CONSULT THE ODS DATA SHEET FOR ADDITIONAL INFORMATION (still in development) Pioneer Natural Resources Last Revised: September 1, 2008 ODSN -43 Permit To Drill Page 9 of 9 ODSN -43 Plduction Well ProposeCompletion Well Head: 9 -5/8 ", 5K, VetcoGray Tree: 2 -7/8 ", 5K, Horizontal Vent Valves Control Line 16" Conductor 153' MDrkb / 153' TVDrkb 2 -7/8" ScSSSV, 2.313" ID @ —750' 2 -7/8" GLM @ 4440' MDrkb / 3153' TVDrkb 2 ■ 7" x 2 -7/8" Packer @ 4500' MDrkb / —3171' TVDrkb 9 -5/8 ", 40# L -80 BTC, 8.835" ID I —5000' MDrkb / 3322' TVDrkb X Nipple, 2.313" ID @ 4470' MD X Nipple, 2.313" ID w RHC -M Profile © 4530' MD 2 -7/8" GLM © 12306' MDrkb / 5510' TVDrkb 2 -7/8 ", 6.5# L -80 IBT-M ESP Cable 0 0 2 -7/8" Durasleeve Sliding Sleeve, 2.313" ID @ 14710' MDrkb ■ Estimated Top of Cement @ 13328' 1 XN Nipple, 2.205" ID Nogo MD / —5787' TVDrkb © 14740' MDrkb 81 degrees ESP @ 14770' MDrkb 14770' MDrkb / 6155' TVDrkb 6 -1/8" Open Hole 7 ", 26# L -80 BTC -M, 6.276" ID l 22838' MDrkb / 6197' TVDrkb Date: Revision By: Comments 8/6/2008 JDF Proposed Completion »k s 1 ' ODSN -43 Producer Well Schematic PIONEER NATURAL RESOURCES • Well Planning - Pioneer - Oooguruk Oooguruk Developement Oooguruk Drill Site ODSN -43 - Slot ODS -43 ODSN -43 PN14 Plan: ODSN -43 PN14 wp11 Standard Proposal Report 19 August, 2008 HALLIBURTON Sperry Drilling Services `�. WELL DETAILS: ODSN - REFERENCE INFORMATION s \' HA LLIBURTON Ground Level: 1 3.5 C (N/E) Reference: Well ODSN -43 -Slot ODS- 43, True North t „ , - Vertical (TVD) Reference: 44' + 13.5' @ 57.58 (Nabors 19AC) 1 +N / - +E/ Northing Fasting Latittude Longitude Slot Measured Depth Reference: 44' + 13,F CO 57.5ft (Nabors 19AC) Sperry Drilling Services 0 . 0 0.0 6031015.46 469831.70 70° 29' 44.902 N 1 SO° 14' 48.061 W ODS -43 Calculation Method: Minimum Curvature PIONEER SECTION DETAILS SURVEY PROGRAM Date: 2008 -08- 19700:00:00 Validated: Yes Version: Sec MD Inc Azi ND +N / -S +E/-W DLeg TFace VSec Target D epth From De th To sure iPlan loot Project: Oooguruk Developement 1 44.0 0.00 0.00 44.0 0.0 0.0 0.00 0.00 0.0 ♦ 0 000 --43 PN14 well CB-GYRO -SS ^ 44.0 1 g IN 2 300.0 0.00 0.00 300.0 0.0 0.0 0.00 0.00 0.0 1200.0 22837.6 ODSN -43 PN14 wp11 MWD +SAG+CA+IIFR+MS Site: Oooguruk Drill Site 3 600.0 3.00 160.00 599.9 -7.4 2.7 1.00 160.00 -2.0 Well: ODSN -43 4 5 750.0 6.00 160.00 749.4 -18.4 1004.5 13.64 160.00 1000.0 -59.2 6.7 2.00 0.00 -5.1 21.5 3.00 0.00 -16.3 Start Dir 1.00 /100' 300.00' MD, 300.00' TVD Wellbore: ODSN -43 PN14 6 1692.1 23.95 160.00 1650.0 -267.0 97.2 1.50 0.00 -73.3 Start Dir 2.00/100' 600.00' MD, 599.90' TVD Plan: ODSN -43 PN14 W 11 7 1801.5 23.95 160.00 1750.0 -308.8 112.4 0.00 0.00 -84.8 - t� 8 2477.5 45.00 180.00 2305.8 -682.0 160.0 3.50 37.06 -99.4 _ ■� 9 3635.0 73.05 214.99 2909.1 - 1582.7 -171.4 3.50 57.61 309.8 S tart Di 3.00/100' 750.00' MD, 749.40' TVD -- _ p 0 -- 10 10756.9 73.05 214.99 4985.0 - 7164.0 - 4078.0 0.00 0.00 4691.8 PN14 v8 Curve _ 50 - ODSN - 43 PN14 wp l I 11 10911.4 73.05 214.99 5030.0 - 7285.1 - 4162.7 0.00 0.00 4786.8 _ _ _ _ - - - 12 13911.4 73.05 313.99 5904.5 - 7527.6 - 6676.9 3.16 90.00 7312.6 - Start Dir 1.50 /100' 1004.50' MD, 1000.00' TVD _ - - Total Depth at 22837.60' MD, 6187.50' TVD 13 13971.5 73.05 315.97 5922.0 - 7487.0 - 6717.5 3.16 90.27 - 7349.5 - - - 2000 _ I 14 14711.2 73.05 315.97 6137.6 - 6978.3 - 7209.3 0.00 0.00 7794.6 - - -600 1 15 14776.4 75.00 316.18 6155.5 - 6933.1 - 7252.8 3.00 5.87 7834.0 PN14 vii T1 End Dir 1692.10' MD, 1650.00' TVD _ �'l • - End Dir 21830.10' MD, 6172.50' TVD 16 15145.1 86.06 316.16 6216.1 - 6671.1 - 7504.3 3.00 -0.11 8061.5 - - - al 1 - ' ,' 17 15609.9 86.06 316.16 6248.0 - 6336.7 - 7825.5 0.00 0.00 8352.0 - ' 2500 ♦ 18 15741.3 90.00 316.35 6252.5 - 6241.9 - 7916.2 3.00 2.82 8434.1 PN14 v11 T2 Start Dir 3.50/100' 1801.50' MD, 1750.00' TVD -1200- - ♦ \ ' Start Dir 3A9%100' 21767.20' MD, 6170.50' TVD 19 16002.8 97.80 315.47 6234.7 - 6054.6 - 8097.6 3.00 -6.40 8598.4 - > \ - ' 20 16489.4 97.80 315.47 6168.7 - 5710.9 - 8435.7 0.00 0.00 8904.9 - • E.tfd Dir 20913.20' MD, 6129.70' TVD 21 16801.6 90.00 320.67 6147.5 - 5479.4 - 8643.5 3.00 146.14 9091.6 PN14 v11 T3 PN14 v11 4 ♦ ♦, 22 16951.4 85.52 321.04 6153.4 - 5363.3 - 8738.0 3.00 175.27 9175.5 - - - -1800- \ ' v ' 23 17612.8 85.52 321.04 6205.0 - 4850.5 - 9152.6 0.00 0.00 9543.4 _ - - - • • Start Dir 340 /100' 20620.70' MD, 6136.10'11, 24 17804.1 90.00 317.45 6212.5 - 4705.8 - 9277.3 3.00 -38.77 9655.0 PN14 v11 T4 - - 300 ♦ 25 18072.9 98.03 318.15 6193.7 - 4507.3 - 9457.3 3.00 4.92 9816.8 End Dir 3635.00' MD 2 909.10' TVD IPN14v11 Tot • \ • • 26 18504.1 98.03 318.15 6133.4 - 4189.3 - 9742.1 0.00 0.00 10072.6 __ • •' End Dir 19987.60 MD, 6190.40' TV. ♦ ♦, ' 27 18802.9 90.00 314.16 6112.5 - 3974.6 - 9948.5 3.00 - 153.46 10259.2 PN14 v11 T5 -2400 , \ 28 19001.2 84.05 314.28 6122.8 - 3836.5 - 10090.3 3.00 178.85 10388.4 • • 29 19621.5 84.05 314.28 6187.0 - 3405.8 - 10532.0 0.00 0.00 10790.6 C ,'\ • 30 19823.1 90.00 313.18 6197.5 - 3266.7 - 10677.4 3.00 -10.43 10923.2 PN14 vii TO 10 3/4" may - I PN14 v11 TI7 \ \ \ • � 31 19987.6 94.92 312.80 6190.4 - 3154.7 - 10797.6 3.00 -4.46 11033.1 0 -3000- \ ,♦ 32 20620.7 94.92 312.80 6136.1 - 2726.1 - 11260.4 0.00 0.00 11456.4 • • 33 20821.8 90.00 316.30 6127.5 - 2585.2 - 11403.6 3.00 144.53 11586.6 PN14 v11 T7 in _ _ \.� • ♦ 34 20913.2 87.26 316.30 6129.7 - 2519.2 - 11466.7 3.00 180.00 11643.7 3 so o IP414v11 T$$i , _ > ♦ 35 21767.2 87.26 316.30 6170.5 - 1902.5 - 12056.0 0.00 0.00 12176.6 - + -3600- - - \ \ 36 21830.1 89.15 316.30 6172.5 - 1857.1 - 12099.5 3.00 -0.01 12215.9 PN14 v11 T8 ♦ L • 37 22837.6 89.15 316.30 6187.5 - 1128.8 - 12795.5 0.00 0.00 12845.2 PN14 v11 T9 \ ♦ 1 O - Start Dir 3.00/100' 19621.50' MD, 6187.00' TVD ' . - > ■ ♦ End Dir 18072.90' MD, 6193.70' TVD ,� • - 4200 - _ ` ♦ \ , 7 - ♦ Start Dir 3.00 /100' 17612.80' MD, 6205.00' TVD End Dir 19001.20' MD, 6122.80' TVD PN vI l T , - ' \ \ ' O -- ♦ ♦ ' ' V007 N - -♦ - End Dir 16951.40' MD, 6153.40' TVD - - - 4800 -- -' I PN14 v11 TIT ♦ N - - Start Dir 3.00/100' 18504.10' MD, 6133.40' TVD \ N. _. - - \ \ .-Start Dir 3.00/100' 16489.40' MD, 6168.70' TVD • S. - CASING DETAILS - 5400 -- IPN14v11Tjt. - \♦ - En d Dir 16002.80' MD, 6234.70' TVD DDI =7.32 - ND MD Name Size ♦ - ' - - 33075000.0 10 3/4" 10.750 • • - - 6155.5 14776.4 7 5/8" 7.625 • - - ' Start Dir 3.00/100' 15609.90' MD, 6248.00' TVD - 6000 I PN14 v11 \ \ QSo - End Dir 15145.10' MD, 6216.10' TVD WELLBORE TARGET DETAILS (MAP CO- ORDINATES) • - - +N / -S +E / -W Northing Easting Shape • • - - Start Dir 3.00/100' 14711.20' MD, 6137.60' TVD -6600- Name TVD 9 9 p \ \ - • 7 5/0" - - - - PN14 v8 Curve 4985.0 - 7164.0 - 4078.0 6023868.79 465725.07 Point • • 'ti . - - - Start Dir 3.16/100' 10756.90' MD, 4985.00' TVD PN14 v11 T5 6112.5 - 3974.6 - 9948.5 6027081.70 459868.20 Point = I DD Poly 95° I - PN14 vii T7 6127.5 -2585.2 -11403.6 6028476.80 458418.90 Point -7200- - PN14 v11 T3 6147.5 - 5479.4 - 8643.5 6025571.70 461166.90 Point I PN14 v11 Til - - ° COMPANY DETAILS: Well Planning Pioneer - Oooguruk Geo Poly PN14 6155.0 - 7148.9 - 7238.9 6023896.74 462564.54 Polygon / I ? b End Dir 13911.40' MD, 5904.50' TVD 'ts _ PN14 v11 T1 6155.5 - 6933.1 - 7252.8 6024112.52 462551.58 Point / i - _ _ - - - Calculation Method: Minimum Curvature - PN14 v11 T8 6172.5 - 1857.1 - 12099.5 6029207.70 457726.00 Point [Geo Poly PN14 Error System: ISCWSA - PN14 v11 T9 6187.5 - 1128.8 - 12795.5 6029938.70 457033.00 Point L - - - - -- - -- : -7800 -- PN14 v11 T6 6197.5 - 3266.7 - 10677.4 6027792.40 459142.20 Point Scan Method: Elliptical Cylinder North - PN14 v11 T4 6212.5 - 4705.8 - 9277.3 6026347.80 460536.30 Point (Begin 300.00' MD ESP Tanglet Error Surface: sical Conic Warning I PN14 v11 T2 6252.5 - 6241.9 - 7916.2 6024806.40 461891.00 Point ming Method: Rules Based 0 I, I 1 l 1 1 i 1 I 1 f i 1 l 1 1 1 1 i 1 1 i i i 1 i 1 r i i i I i i i i i i i I i 11 1 I i I i 1 1 I I I I I I I I 1 I I 1 I I`I I I I I I I I I t I i I I I I I I I I I I I r l I I I I I I 1 I I I I I I I i I I I I i i i I I i I i -13800 -13200 -12600 -12000 -11400 -10800 -10200 -9600 -9000 -8400 -7800 -7200 -6600 -6000 -5400 -4800 -4200 -3600 -3000 -2400 -1800 -1200 -600 0 600 - West( - )/East( +) (1500 ft/in) H A LLI B U RTO N WELL DETAILS ODSN -43 REFERENCE INFORMATION Ground Level: 13.5 Co (N/E) Reference: well ODSN -43 - Slot ODS -43, True North " 7, +N / -S +E/ Northing Easting Latittude Longitude Slot Vertical (TVD) Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Sperry Drilling Services 0.0 Depth Reference: 44' + 13.5' @ 57.55 (Nabors 19AC) 0.0 0.0 6031015.46 469831.70 70° 29' 44.902 N 150° 14' 48.061 W ODS Calculation Method: Minimum Curvature PIONEER WELLBORE TARGET DETAILS (MAP CO- ORDINATES) SECTION DETAILS Project: Oooguruk Developement Name TVD +N / -S +E/ -W Northing Easting Shape Sec MD Inc Azi ND +N / -S +E / -W DLeg TFace VSec Target Site: Oooguruk Drill Site PN14 v8 Curve 4985.0 - 7164.0 - 4078.0 6023868.79 465725.07 Point 1 44.0 0.00 0.00 44.0 0.0 0.0 0.00 0.00 0.0 g PN14 v11 T5 6112.5 - 3974.6 - 9948.5 6027081.70 459868.20 Point 2 300.0 0.00 0.00 300.0 0.0 0.0 0.00 0.00 0.0 Well: ODSN -43 PN14v11 T7 6127.5 - 2585.2 - 11403.6 6028476.80 458418.90 Point 3 600.0 3.00 160.00 599.9 -7.4 2.7 1.00 160.00 -2.0 Wellbore: ODSN -43 PN14 PN14 v11 T3 6147.5 - 5479.4 - 8643.5 6025571.70 461166.90 Point 4 750.0 6.00 160.00 749.4 18.4 6.7 2.00 0.00 5.1 Geo Poly PN14 6155.0 - 7148.9 - 7238.9 6023896.74 462564.54 Polygon 5 1004.5 13.64 160.00 1000.0 -59.2 21.5 3.00 0.00 -16.3 Plan: ODSN -43 PN14 wp11 PN14 v11 T1 6155.5 - 6933.1 - 7252.8 6024112.52 462551.58 Point 6 1692.1 23.95 160.00 1650.0 -267.0 97.2 1.50 0.00 -73.3 PN14 v11 T8 6172.5 - 1857.1 - 12099.5 6029207.70 457726.00 Point 7 1801.5 23.95 160.00 1750.0 -308.8 112.4 0.00 0.00 -84.8 PN14 v11 T9 6187.5 - 1128.8 - 12795.5 6029938.70 457033.00 Point 8 2477.5 45.00 180.00 2305.8 -682.0 160.0 3.50 37.06 -99.4 - PN14 v11 T6 6197.5 - 3266.7 - 10677.4 6027792.40 459142.20 Point 9 3635.0 73.05 214.99 2909.1 - 1582.7 -171.4 3.50 57.61 309.8 1200 DDI = 7.32 P1414 v11 T4 6212.5 - 4705.8 - 9277.3 6026347.80 460536.30 Point 10 10756.9 73.05 214.99 4985.0 - 7164.0 - 4078.0 0.00 0.00 4691.8 PN14 v8 Curve PN14 v11 T2 6252.5 - 6241.9 - 7916.2 6024806.40 461891.00 Point 11 10911.4 73.05 214.99 5030.0 - 7285.1 - 4162.7 0.00 0.00 4786.8 _ 12 13911.4 73.05 313.99 5904.5 - 7527.6 - 6676.9 3.16 90.00 7312.6 - 13 13971.5 73.05 315.97 5922.0 - 7487.0 - 6717.5 3.16 90.27 7349.5 SURVEY PROGRAM COMPANY DETAILS: Well Planning - Pioneer - Oooguruk 14 14711.2 73.05 315.97 6137.6 - 6978.3 - 7209.3 0.00 0.00 7794.6 -600- Date: 2008 08 Validated: Yes Version: - 15 14776.4 75.00 316.18 6155.5 - 6933.1 - 7252.8 3.00 5.87 7834.0 PN14 v11 T1 - - Depth From Depth To Surveyy/Plan Tool Calculation Method: Minimum Curvature 16 15145.1 86.06 316.16 6216.1 - 6671.1 - 7504.3 3.00 -0.11 8061.5 44.0 1200 0 ODSN - 43 PN14 wp11 CB GYRO - SS Error System: ISCWSA 17 15609.9 86.06 316.16 6248.0 - 6336.7 - 7825.5 0.00 0.00 8352.0 1200.0 22837.6 ODSN.43PN14wp11 MWD +SAG +CA+IIFR +MS Scan Method: Tray.CylinderNorth 18 15741.3 90.00 316.35 6252.5 - 6241.9 - 7916.2 3.00 2.82 8434.1 PN14 v11 T2 0- Error Surface: Elliptical Conic 19 16002.8 97.80 315.47 6234.7 - 6054.6 - 8097.6 3.00 -6.40 8598.4 Start Dir 1.00/100' 300.00' MD, 300.00' TVD Warning Method: Rules Based 20 16489.4 97.80 315.47 6168.7 - 5710.9 - 8435.7 0.00 0.00 8904.9 -- _._ __ - 21 16801.6 90.00 320.67 6147.5 - 5479.4 - 8643.5 3.00 146.14 9091.6 PN14 v11 T3 22 16951.4 85.52 321.04 6153.4 - 5363.3 - 8738.0 3.00 175.27 9175.5 600 - . - _ _ Start Dir 2.00/100' 600.00' MD, 599.90' TVD 23 17612.8 85.52 321.04 6205.0 - 4850.5 - 9152.6 0.00 0.00 9543.4 CASING DETAILS _ 24 17804.1 90.00 317.45 6212.5 - 4705.8 - 9277.3 3.00 - 38.77 9655.0 PN14 v11 T4 - - - - - 25 18072.9 98.03 318.15 6193.7 - 4507.3 - 9457.3 3.00 4.92 9816.8 - Start Dir 3.00/100' 750.00' MD, 749.40' TVD TVD MD Name Size 26 18504.1 98.03 318.15 6133.4 - 4189.3 - 9742.1 0.00 0.00 10072.6 - - _ _ _ _ 3307.0 5000.0 10 3/4" 10.750 27 18802.9 90.00 314.16 6112.5 - 3974.6 - 9948.5 3.00 - 153.46 10259.2 PN14 v11 T5 1200 Start Dir 1.50/100' 1004.50' MD, 1000.00' ND 6155.5 14776.4 7 5/8" 7.625 28 19001.2 84.05 314.28 6122.8 - 3836.5- 10090.3 3.00 178.85 10388.4 - 29 19621.5 84.05 314.28 6187.0 - 3405.8- 10532.0 0.00 0.00 10790.6 - - 20° 30 19823.1 90.00 313.18 6197.5 - 3266.7 - 10677.4 3.00 -10.43 10923.2 PN14 v11 T6 - - - End Dir 1692.10' MD, 1650.00' TVD 31 19987.6 94.92 312.80 6190.4 - 3154.7- 10797.6 3.00 -4.46 11033.1 1800- - - - _ _ End Dir 13911.40' MD, 5904.50' TVD 32 20620.7 94.92 312.80 6136.1 - 2726.1 - 11260.4 0.00 0.00 11456.4 O _ - - _ __ _ 33 20821.8 90.00 316.30 6127.5 - 2585.2- 11403.6 3.00 144.53 11586.6 P1414 v11 T7 _ Start Dir 3.501100' 1801.50' MD, 1750.00' TVD ` 34 20913.2 87.26 316.30 6129.7 - 2519.2 - 11466.7 3.00 180.00 11643.7 40° ` 35 21767.2 87.26 316.30 6170.5 - 1902.5- 12056.0 0.00 0.00 12176.6 36 21830.1 89.15 316.30 6172.5 - 1857.1 - 12099.5 3.00 -0.01 12215.9 PN14 v11 T8 L 2400- Start Dir 3.00/100' 14711.20' MD, 6137.60' TVD 37 22837.6 89.15 316.30 6187.5 - 1128.8 - 12795.5 0.00 0.00 12845.2 PN14 v11 TO a _ End Dir 3635.00' MD, 2909.10' TVD '\ a) - - - - , , 0 - - End Dir 15145.10' MD, 6216.10' TVD 3000- Start Dir 3.00/100' 18504.10' MD, 6133.40' ND Start Dir 3.16/100' 10756.90' MD, 4985.00' ND Start Dir 3.00/100' 15609.90' MD, 6248.00' TVD End Dir 19001.20' MD, 6122.80' TVD 10 3/4" , , s w 3600 -- ' Start Dir 3.00/100' 19621.50' MD, 6187.00' TVD I k S S S ` / ■ - 5 End Dir 16002.80' MD, 6234.70' TVD ' 4200- , 5 5 ` End Dir 19987.60' MD, 6190.40' TVD • 5 5 5 Start Dir 3.00/100' 16489.40' MD, 6168.70' TVD Start Dir 3.00/100' 20620.70' MD, 6136.10' TVD 5 5 / / End Dir 20913.20' MD, 6129.70' TVD 4800- ` End Dir 16951.40' MD, 6153.40' TVD , - 5 5 5 5 t , Start Dir 3.00/100' 21767.20' MD, 6170.50' ND Start Dir 3.00/100' 17612.80' MD, 6205.00' TVD End Dir 21830.10' MD, 6172.50' TVD 5400- \ 5 `5 5 5 `5 \, \, \ 5 ' ' / ' ' End Dir 18072.90' MD, 6193.70',1 VD ' / I / ' ' _ , , ° , , , , , ' / Total Depth at 22837.60' MD, 6187.50' TVD �, ' ` , , S ` I I / / t t I . 6000 'Begin 300.00' MD ESP Tangei - - ',, ` 4 t 7 5/8" ; ' , • 6600-- i PN14 v11 T3I IPN14v11 T5 i, PN14v11 T7I IPN1 4v11T1 / • , ; • IPN14 v11 T2 IPN14 v11 T4 PN14 v11 T6I PN14 v11 T8 ODSN -43 PN14 wp11 1 - 1 rTr - r'T - 7 - 77 71 - I I I I 71TITT TT,TTI I I I I 1 I I rT I I I I I I I I l I l ITT - T - T I I 1 ' - T I I rT r " - T - - r I I f 1 I I I T I I T7 I I I I 1 1 1 1 1 1T" - I I I I T - r TT - I 1 1 1 1 1 1 r " TTI - rTT'T777 - -600 0 600 1200 1800 2400 3000 3600 4200 4800 5400 6000 6600 7200 7800 8400 9000 9600 10200 10800 11400 12000 12600 13200 13800 Vertical Section at 264.96bearing (1500 ft/in) Sperry Drilling Services p rY 9 HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN -43 - Slot ODS -43 Company: Well Planning - Pioneer - Oooguruk TVD Reference; 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN -43 Survey Calculation Method: Minimum Curvature Welibore: ODSN -43 PN14 Design: ODSN -43 PN14 wp11 Project - Oooguruk Developement Map System: US State Plane 1927 (Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Oooguruk Drill Site Site Position: Northing: 6,031,151.32ft Latitude: 70° 29' 46.242 N From: Map Easting: 469,920.45ft Longitude: 150° 14' 45.465 W Position Uncertainty: 0.0 ft Slot Radius: in Grid Convergence: -0.23 ? I Well ODSN -43 - Slot ODS-43 Well Position +N /-S 0.0 ft Northing: 6,031,015.46 ft Latitude: 70° 29' 44.902 N +E / -W 0.0 ft Easting: 469,831.70 ft Longitude: 150° 14' 48.061 W Position Uncertainty 0.0 ft Wellhead Elevation: ft Ground Level: 13.5ft • Welibore ODSN -43 PN14 Magnetics Model Name Sample Date Declination Dip Angle Field Strength ( ?) ( ?) (nT) IGRF200510 3/6/2007 23.24 80.81 57,643 Design ODSN -43 PN14 wp11 Audit Notes: Version: Phase: PLAN Tie On Depth: 44.0 Vertical Section: Depth From (TVD) +N /-S +E/ -W Direction (ft) (ft) (ft) (bearing) 44.0 0.0 0.0 264.96 8/19/2008 2:31:24PM Page 2 COMPASS 2003.16 Build 428 • • t� t �A Sperry Drilling Services H,LLIBURTON Standard Proposal Report Database: ..EDMAlaska Local Co- ordinate Reference: = Well ODSN - 43 - Slot ODS Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site:- Oooguruk Drill Site North Reference: True Weil: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Plan Sections Measured Vertical ND Dogleg Build Turn Depth inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (ft) ( ?) ( (ft) ft (ft) (ft) ( ?/100ft) ( ?/100ft) ( ?1100ft) ( ?) 44.0 0.00 0.00 44.0 -13.5 0.0 0.0 0.00 0.00 0.00 0.00 300.0 0.00 0.00 300.0 242.5 0.0 0.0 0.00 0.00 0.00 0.00 !: 600.0 3.00 160.00 599.9 542.4 -7.4 2.7 1.00 1.00 0.00 160.00 750.0 6.00 160.00 749.4 69 -18.4 6.7 2.00 2.00 0.00 0.00 1,004.5 13.64 160.00 1,000.0 942.5 -59.2 21.5 3.00 3.00 0.00 0.00 1,692.1 23.95 160.00 1,650.0 1,592.5 -267.0 97.2 1.50 1.50 0.00 0.00 1,801.5 23.95 160.00 1,750.0 1,692.5 -308.8 112.4 0.00 0.00 0.00 0.00 2,477.5 45.00 180.00 2,305.8 2,248.3 -682.0 160.0 3.50 3.11 2.96 37.06 3,635.0 73.05 214.99 2,909.1 2,851.6 - 1,582.7 -171.4 3.50 2.42 3.02 57.61 10,756.9 73.05 214.99 4,985.0 4,927.5 - 7,164.0 - 4,078.0 0.00 0.00 0.00 0.00 10,911.4 73.05 214.99 5,030.0 4,972.5 - 7,285.1 - 4,162.7 0.00 0.00 0.00 0.00 13,911.4 73.05 313.99 5,904.5 5,847.0 - 7,527.6 - 6,676.9 3.16 0.00 3.30 90.00 13,971.5 73.05 315.97 5,922.0 5,864.5 - 7,487.0 - 6,717.5 3.16 0.00 3.30 90.27 14,711.2 73.05 315.97 6,137.6 6,080.1 - 6,978.3 - 7,209.3 0.00 0.00 0.00 0.00 14,776.4 75.00 316.18 6,155.5 6,098.0 - 6,933.1 - 7,252.8 3.00 2.98 0.32 5.87 15,145.1 86.06 316.16 6,216.1 6,158.6 - 6,671.1 - 7,504.3 3.00 3.00 -0.01 -0.11 15,609.9 86.06 316.16 6,248.0 6,190.5 - 6,336.7 - 7,825.5 0.00 0.00 0.00 0.00 15,741.3 90.00 316.35 6,252.5 6,195.0 - 6,241.9 - 7,916.2 3.00 3.00 0.15 2.82 16,002.8 97.80 315.47 6,234.7 6,177.2 - 6,054.6 - 8,097.6 3.00 2.98 -0.34 -6.40 16,489.4 97.80 315.47 6,168.7 6,111.2 - 5,710.9 - 8,435.7 0.00 0.00 0.00 0.00 16,801.6 90.00 320.67 6,147.5 6,090.0 - 5,479.4 - 8,643.5 3.00 -2.50 1.67 146.14 16,951.4 85.52 321.04 6,153.4 6,095.9 - 5,363.3 - 8,738.0 3.00 -2.99 0.25 175.27 17,612.8 85.52 321.04 6,205.0 6,147.5 - 4,850.5 - 9,152.6 0.00 0.00 0.00 0.00 17,804.1 90.00 317.45 6,212.5 6,155.0 - 4,705.8 - 9,277.3 3.00 2.34 -1.88 -38.77 18,072.9 98.03 318.15 6,193.7 6,136.2 - 4,507.3 - 9,457.3 3.00 2.99 0.26 4.92 18,504.1 98.03 318.15 6,133.4 6,075.9 - 4,189.3 - 9,742.1 0.00 0.00 0.00 0.00 18,802.9 90.00 314.16 6,112.5 6,055.0 - 3,974.6 - 9,948.5 3.00 -2.69 -1.34 - 153.46 19,001.2 84.05 314.28 6,122.8 6,065.3 - 3,836.5 - 10,090.3 3.00 -3.00 0.06 178.85 19,621.5 84.05 314.28 6,187.0 6,129.5 - 3,405.8 - 10,532.0 0.00 0.00 0.00 0.00 19,823.1 90.00 313.18 6,197.5 6,140.0 - 3,266.7 - 10,677.4 3.00 2.95 -0.54 -10.43 19,987.6 94.92 312.80 6,190.4 6,132.9 - 3,154.7 - 10,797.6 3.00 2.99 -0.23 -4.46 20,620.7 94.92 312.80 6,136.1 6,078.6 - 2,726.1 - 11,260.4 0.00 0.00 0.00 0.00 20,821.8 90.00 316.30 6,127.5 6,070.0 - 2,585.2 - 11,403.6 3.00 -2.45 1.74 144.53 20,913.2 87.26 316.30 6,129.7 6,072.2 - 2,519.2 - 11,466.7 3.00 -3.00 0.00 180.00 21,767.2 87.26 316.30 6,170.5 6,113.0 - 1,902.5 - 12,056.0 0.00 0.00 0.00 0.00 21,830.1 89.15 316.30 6,172.5 6,115.0 - 1,857.1 - 12,099.5 3.00 3.00 0.00 -0.01 22,837.6 89.15 316.30 6,187.5 6,130.0 - 1,128.8 - 12,795.5 0.00 0.00 0.00 0.00 8/19/2008 2:31:24PM Page 3 COMPASS 2003.16 Build 42B • • �r Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS - 43 Company:. Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: - Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Ca lculation.Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/ -W Northing Easting DLS Vert Section (ft) . ( ?) (be aring) (ft) . ft (ft) (ft) (ft) (ft) -13.50 44.0 0.00 0.00 44.0 -13.5 0.0 0.0 6,031,015.46 469,831.70 0.00 0.00 100.0 0.00 0.00 100.0 42.5 0.0 0.0 6,031,015.46 469,831.70 0.00 0.00 200.0 0.00 0.00 200.0 142.5 0.0 0.0 6,031,015.46 469,831.70 0.00 0.00 300.0 0.00 0.00 300.0 242.5 0.0 0.0 6,031,015.46 469,831.70 0.00 0.00 Start Dir 1.00/100' 300.00' MD, 300.00' TVD 400.0 1.00 160.00 400.0 342.5 -0.8 0.3 6,031,014.64 469,831.99 1.00 -0.23 500.0 2.00 160.00 500.0 442.5 -3.3 1.2 6,031,012.18 469,832.88 1.00 -0.90 600.0 3.00 160.00 599.9 542.4 -7.4 2.7 6,031,008.07 469,834.35 1.00 -2.03 Start Dir 2.00/100' 600.00' MD, 599.90' TVD 700.0 5.00 160.00 699.6 642.1 -13.9 5.1 6,031,001.51 469,836.71 2.00 -3.83 750.0 6.00 160.00 749.4 691.9 -18.4 6.7 6,030,997.00 469,838.33 2.00 -5.06 Start Dir 3.00/100' 750.00' MD, 749.40' TVD 800.0 7.50 160.00 799.0 741.5 -24.0 8.7 6,030,991.47 469,840.32 3.00 -6.58 900.0 10.50 160.00 897.8 840.3 -38.7 14.1 6,030,976.75 469,845.61 3.00 -10.62 1,000.0 13.50 160.00 995.6 938.1 -58.2 21.2 6,030,957.19 469,852.64 3.00 -15.98 1,004.5 13.63 160.00 1,000.0 942.5 -59.2 21.5 6,030,956.20 469,853.00 3.00 -16.26 Start Dir 1.50/100' 1004.50' MD, 1000.00' TVD 1,100.0 15.07 160.00 1,092.5 1,035.0 -81.4 29.6 6,030,933.92 469,861.00 1.50 -22.37 1,200.0 16.57 160.00 1,188.7 1,131.2 -107.0 39.0 6,030,908.27 469,870.22 1.50 -29.40 1,300.0 18.07 160.00 1,284.2 1,226.7 -135.0 49.1 6,030,880.26 469,880.29 1.50 -37.09 1,400.0 19.57 160.00 1,378.8 1,321.3 -165.3 60.2 6,030,849.91 469,891.19 1.50 -45.41 1,500.0 21.07 160.00 1,472.6 1,415.1 -197.9 72.0 6,030,817.24 469,902.94 1.50 -54.37 1,600.0 22.57 160.00 1,565.4 1,507.9 -232.9 84.8 6,030,782.27 469,915.50 1.50 -63.97 1,692.1 23.95 160.00 1,650.0 1,592.5 -267.0 97.2 6,030,748.05 469,927.80 1.50 -73.35 End Dir 1692.10' MD, 1650.00' TVD 1,700.0 23.95 160.00 1,657.3 1,599.8 -270.1 98.3 6,030,745.03 469,928.89 0.00 -74.18 1,800.0 23.95 160.00 1,748.6 1,691.1 -308.2 112.2 6,030,706.83 469,942.61 0.00 -84.66 1,801.5 23.95 160.00 1,750.0 1,692.5 -308.8 112.4 6,030,706.26 469,942.82 0.00 -84.82 Start Dir 3.50/100' 1801.50' MD, 1750.00' ND 1,900.0 26.78 164.62 1,839.0 1,781.5 -349.0 125.1 6,030,666.02 469,955.38 3.50 -93.96 2,000.0 29.77 168.44 1,927.1 1,869.6 -395.0 136.1 6,030,619.93 469,966.15 3.50 - 100.83 2,100.0 32.86 171.62 2,012.5 1,955.0 -446.2 145.0 6,030,568.72 469,974.87 3.50 - 105. 2,200.0 36.01 174.30 2,095.0 2,037.5 -502.3 151.9 6,030,512.59 469,981.51 3.50 - 107.14 2,300.0 39.22 176.61 2,174.2 2,116.7 -563.1 156.7 6,030,451.74 469,986.06 3.50 - 106.57 2,400.0 42.46 178.61 2,249.8 2,192.3 -628.5 159.3 6,030,386.41 469,988.48 3.50 - 103.51 2,477.5 45.00 180.00 2,305.8 2,248.3 -682.0 160.0 6,030,332.88 469,988.90 3.50 -99.43 2,500.0 45.43 180.94 2,321.7 2,264.2 -698.0 159.9 6,030,316.88 469,988.70 3.50 -97.90 2,600.0 47.41 184.92 2,390.6 2,333.1 -770.3 156.1 6,030,244.60 469,984.67 3.50 -87.82 2,700.0 49.52 188.65 2,457.0 2,399.5 -844.6 147.2 6,030,170.35 469,975.49 3.50 -72.44 2,800.0 51.74 192.15 2,520.4 2,462.9 -920.6 133.2 6,030,094.42 469,961.19 3.50 -51.82 2,900.0 54.06 195.44 2,580.7 2,523.2 -998.0 114.2 6,030,017.08 469,941.83 3.50 -26.05 3,000.0 56.46 198.54 2,637.7 2,580.2 - 1,076.6 90.2 6,029,938.63 469,917.48 3.50 4.80 3,100.0 58.94 201.46 2,691.2 2,633.7 - 1,156.0 61.2 6,029,859.36 469,888.23 3.50 40.59 3,200.0 61.48 204.24 2,740.9 2,683.4 - 1,235.9 27.5 6,029,779.56 469,854.19 3.50 81.20 3,300.0 64.07 206.88 2,786.6 2,729.1 - 1,316.1 -10.9 6,029,699.53 469,815.49 3.50 126.48 8/19/2008 2 :31 :24PM Page 4 COMPASS 2003.16 Build 428 • • N Sperry Drilling Services HA LL I B U R TQ I Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N /-S +E/ -W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) (ft) {ft) 2,770.76 3,400.0 66.71 209.41 2,828.3 2,770.8 - 1,396.3 -53.8 6,029,619.58 469,772.27 3.50 176.26 3,500.0 69.39 211.84 2,865.6 2,808.1 - 1,476.0 -101.0 6,029,539.99 469,724.70 3.50 230.34 3,600.0 72.10 214.19 2,898.6 2,841.1 - 1,555.2 -152.5 6,029,461.07 469,672.94 3.50 288.54 I 3,635.0 73.05 214.99 2,909.1 2,851.6 - 1,582.7 -171.4 6,029,433.65 469,653.88 3.50 309.84 End Dir 3635.00' MD, 2909.10' TVD 3,700.0 73.05 214.99 2,928.0 2,870.5 - 1,633.6 -207.1 6,029,382.87 469,618.02 0.00 349.83 3,800.0 73.05 214.99 2,957.2 2,899.7 - 1,712.0 -261.9 6,029,304.73 469,562.85 0.00 411.36 3,900.0 73.05 214.99 2,986.3 2,928.8 - 1,790.3 -316.8 6,029,226.59 469,507.69 0.00 472.88 4,000.0 73.05 214.99 3,015.5 2,958.0 - 1,868.7 -371.6 6,029,148.45 469,452.53 0.00 534.41 4,100.0 73.05 214.99 3,044.6 2,987.1 - 1,947.1 -426.5 6,029,070.32 469,397.36 0.00 595.94 4,200.0 73.05 214.99 3,073.8 3,016.3 - 2,025.5 -481.3 6,028,992.18 469,342.20 0.00 657.47 4,300.0 73.05 214.99 3,102.9 3,045.4 - 2,103.8 -536.2 6,028,914.04 469,287.03 0.00 718.99 4,400.0 73.05 214.99 3,132.1 3,074.6 - 2,182.2 -591.0 6,028,835.91 469,231.87 0.00 780.52 4,500.0 73.05 214.99 3,161.2 3,103.7 - 2,260.6 -645.9 6,028,757.77 469,176.70 0.00 842.05 4,600.0 73.05 214.99 3,190.4 3,132.9 - 2,338.9 -700.7 6,028,679.63 469,121.54 0.00 903.58 4,700.0 73.05 214.99 3,219.5 3,162.0 - 2,417.3 -755.6 6,028,601.50 469,066.37 0.00 965.10 4,800.0 73.05 214.99 3,248.7 3,191.2 - 2,495.7 -810.5 6,028,523.36 469,011.21 0.00 1,026.63 4,900.0 73.05 214.99 3,277.8 3,220.3 - 2,574.0 -865.3 6,028,445.22 468,956.04 0.00 1,088.16 5,000.0 73.05 214.99 3,307.0 3,249.5 - 2,652.4 -920.2 6,028,367.08 468,900.88 0.00 1,149.69 10 3/4" 5,100.0 73.05 214.99 3,336.1 3,278.6 - 2,730.8 -975.0 6,028,288.95 468,845.71 0.00 1,211.21 5,200.0 73.05 214.99 3,365.3 3,307.8 - 2,809.1 - 1,029.9 6,028,210.81 468,790.55 0.00 1,272.74 5,300.0 73.05 '214.99 3,394.4 3,336.9 - 2,887.5 - 1,084.7 6,028,132.67 468,735.38 0.00 1,334.27 5,400.0 73.05 214.99 3,423.6 3,366.1 - 2,965.9 - 1,139.6 6,028,054.54 468,680.22 0.00 1,395.80 5,500.0 73.05 214.99 3,452.7 3,395.2 - 3,044.2 - 1,194.4 6,027,976.40 468,625.05 0.00 1,457.32 5,600.0 73.05 214.99 3,481.9 3,424.4 - 3,122.6 - 1,249.3 6,027,898.26 468,569.89 0.00 1,518.85 I 5,700.0 73.05 214.99 3,511.0 3,453.5 - 3,201.0 - 1,304.1 6,027,820.13 468,514.72 0.00 1,580.38 5,800.0 73.05 214.99 3,540.2 3,482.7 - 3,279.3 - 1,359.0 6,027,741.99 468,459.56 0.00 1,641.91 5,900.0 73.05 214.99 3,569.3 3,511.8 - 3,357.7 - 1,413.8 6,027,663.85 468,404.39 0.00 1,703.43 6,000.0 73.05 214.99 3,598.5 3,541.0 - 3,436.1 - 1,468.7 6,027,585.72 468,349.23 0.00 1,764.96 6,100.0 73.05 214.99 3,627.6 3,570.1 - 3,514.4 - 1,523.5 6,027,507.58 468,294.06 0.00 1,826.49 6,200.0 73.05 214.99 3,656.7 3,599.2 - 3,592.8 - 1,578.4 6,027,429.44 468,238.90 0.00 1,888.01 6,300.0 73.05 214.99 3,685.9 3,628.4 - 3,671.2 - 1,633.2 6,027,351.30 468,183.73 0.00 1,949.54 6,400.0 73.05 214.99 3,715.0 3,657.5 - 3,749.6 - 1,688.1 6,027,273.17 468,128.57 0.00 2,011.07 6,500.0 73.05 214.99 3,744.2 3,686.7 - 3,827.9 - 1,743.0 6,027,195.03 468,073.40 0.00 2,072.60 6,600.0 73.05 214.99 3,773.3 3,715.8 - 3,906.3 - 1,797.8 6,027,116.89 468,018.24 0.00 2,134.12 6,700.0 73.05 214.99 3,802.5 3,745.0 - 3,984.7 - 1,852.7 6,027,038.76 467,963.07 0.00 2,195.65 6,800.0 73.05 214.99 3,831.6 3,774.1 - 4,063.0 - 1,907.5 6,026,960.62 467,907.91 0.00 2,257.18 1 6,900.0 73.05 214.99 3,860.8 3,803.3 - 4,141.4 - 1,962.4 6,026,882.48 467,852.74 0.00 2,318.71 7,000.0 73.05 214.99 3,889.9 3,832.4 - 4,219.8 - 2,017.2 6,026;804.35 467,797.58 0.00 2,380.23 I 7,100.0 73.05 214.99 3,919.1 3,861.6 - 4,298.1 - 2,072.1 6,026,726.21 467,742.42 0.00 2,441.76 1 7,200.0 73.05 214.99 3,948.2 3,890.7 - 4,376.5 - 2,126.9 6,026,648.07 467,687.25 0.00 2,503.29 7,300.0 73.05 214.99 3,977.4 3,919.9 - 4,454.9 - 2,181.8 6,026,569.93 467,632.09 0.00 2,564.82 I 7,400.0 73.05 214.99 4,006.5 3,949.0 - 4,533.2 - 2,236.6 6,026,491.80 467,576.92 0.00 2,626.34 7,500.0 73.05 214.99 4,035.7 3,978.2 - 4,611.6 - 2,291.5 6,026,413.66 467,521.76 0.00 2,687.87 8/19/2008 2:31:24PM Page 5 COMPASS 2003.16 Build 428 • • Sperry Drilling Services HALLIBURTO1' J Standard Proposal Report Database: ..EDM_Alaska Local Co - ordinate Reference: Well ODSN -43 - Slot ODS -43 Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Welibore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N /-S +E/ -W Northing Easting DLS Veil Section (ft) (1) (bearing) (ft) ft (ft) (ft) (ft) (ft) 4,007.32 7,600.0 73.05 214.99 4,064.8 4,007.3 - 4,690.0 - 2,346.3 6,026,335.52 467,466.59 0.00 2,749.40 7,700.0 73.05 214.99 4,094.0 4,036.5 - 4,768.3 - 2,401.2 6,026,257.39 467,411.43 0.00 2,810.93 7,800.0 73.05 214.99 4,123.1 4,065.6 - 4,846.7 - 2,456.0 6,026,179.25 467,356.26 0.00 2,872.45 7,900.0 73.05 214.99 4,152.3 4,094.8 - 4,925.1 - 2,510.9 6,026,101.11 467,301.10 0.00 2,933.98 8,000.0 73.05 214.99 4,181.4 4,123.9 - 5,003.4 - 2,565.7 6,026,022.98 467,245.93 0.00 2,995.51 8,100.0 73.05 214.99 4,210.6 4,153.1 - 5,081.8 - 2,620.6 6,025,944.84 467,190.77 0.00 3,057.04 8,200.0 73.05 214.99 4,239.7 4,182.2 - 5,160.2 - 2,675.5 6,025,866.70 467,135.60 0.00 3,118.56 8,300.0 73.05 214.99 4,268.9 4,211.4 - 5,238.5 - 2,730.3 6,025,788.56 467,080.44 0.00 3,180.09 8,400.0 73.05 214.99 4,298.0 4,240.5 - 5,316.9 - 2,785.2 6,025,710.43 467,025.27 0.00 3,241.62 8,500.0 73.05 214.99 4,327.2 4,269.7 - 5,395.3 - 2,840.0 6,025,632.29 466,970.11 0.00 3,303.15 8,600.0 73.05 214.99 4,356.3 4,298.8 - 5,473.7 - 2,894.9 6,025,554.15 466,914.94 0.00 3,364.67 8,700.0 73.05 214.99 4,385.4 4,327.9 - 5,552.0 - 2,949.7 6,025,476.02 466,859.78 0.00 3,426.20 8,800.0 73.05 214.99 4,414.6 4,357.1 - 5,630.4 - 3,004.6 6,025,397.88 466,804.61 0.00 3,487.73 8,900.0 73.05 214.99 4,443.7 4,386.2 - 5,708.8 - 3,059.4 6,025,319.74 466,749.45 0.00 3,549.26 9,000.0 73.05 214.99 4,472.9 4,415.4 - 5,787.1 - 3,114.3 6,025,241.61 466,694.28 0.00 3,610.78 9,100.0 73.05 214.99 4,502.0 4,444.5 - 5,865.5 - 3,169.1 6,025,163.47 466,639.12 0.00 3,672.31 9,200.0 73.05 214.99 4,531.2 4,473.7 - 5,943.9 - 3,224.0 6,025,085.33 466,583.95 0.00 3,733.84 9,300.0 73.05 214.99 4,560.3 4,502.8 - 6,022.2 - 3,278.8 6,025,007.19 466,528.79 0.00 3,795.37 9,400.0 73.05 214.99 4,589.5 4,532.0 - 6,100.6 - 3,333.7 6,024,929.06 466,473.62 0.00 3,856.89 9,500.0 73.05 214.99 4,618.6 4,561.1 - 6,179.0 - 3,388.5 6,024,850.92 466,418.46 0.00 3,918.42 9,600.0 73.05 214.99 4,647.8 4,590.3 - 6,257.3 - 3,443.4 6,024,772.78 466,363.29 0.00 3,979.95 9,700.0 73.05 214.99 4,676.9 4,619.4 -6,335.7 - 3,498.2 6,024,694.65 466,308.13 0.00 4,041.47 9,800.0 73.05 214.99 4,706.1 4,648.6 - 6,414.1 - 3,553.1 6,024,616.51 466,252.96 0.00 4,103.00 9,900.0 73.05 214.99 4,735.2 4,677.7 - 6,492.4 - 3,607.9 6,024,538.37 466,197.80 0.00 4,164.53 10,000.0 73.05 214.99 4,764.4 4,706.9 - 6,570.8 - 3,662.8 6,024,460.24 466,142.63 0.00 4,226.06 10,100.0 73.05 214.99 4,793.5 4,736.0 - 6,649.2 - 3,717.7 6,024,382.10 466,087.47 0.00 4,287.58 10,200.0 73.05 214.99 4,822.7 4,765.2 - 6,727.5 - 3,772.5 6,024,303.96 466,032.30 0.00 4,349.11 10,300.0 73.05 214.99 4,851.8 4,794.3 - 6,805.9 - 3,827.4 6,024,225.82 465,977.14 0.00 4,410.64 10,400.0 73.05 214.99 4,881.0 4,823.5 - 6,884.3 - 3,882.2 6,024,147.69 465,921.98 0.00 4,472.17 10,500.0 73.05 214.99 4,910.1 4,852.6 - 6,962.6 - 3,937.1 6,024,069.55 465,866.81 0.00 4,533.69 10,600.0 73.05 214.99 4,939.3 4,881.8 - 7,041.0 - 3,991.9 6,023,991.41 465,811.65 0.00 4,595.22 10,700.0 73.05 214.99 4,968.4 4,910.9 - 7,119.4 - 4,046.8 6,023,913.28 465,756.48 0.00 4,656.75 10,756.9 73.05 214.99 4,985.0 4,927.5 - 7,164.0 - 4,078.0 6,023,868.79 465,725.07 0.00 4,691.78 Start Dir 3.16/100' 10756.90' MD, 4985.00' TVD - PN14 v8 Curve 10,800.0 73.05 214.99 4,997.6 4,940.1 - 7,197.8 - 4,101.6 6,023,835.14 465,701.32 0.00 4,718.28 10,900.0 73.05 214.99 5,026.7 4,969.2 - 7,276.1 - 4,156.5 6,023,757.00 465,646.15 0.00 4,779.80 10,911.4 73.05 214.99 5,030.0 4,972.5 - 7,285.1 - 4,162.7 6,023,748.07 465,639.84 0.00 4,786.84 11,000.0 73.05 217.91 5,055.8 4,998.3 - 7,353.2 - 4,213.1 6,023,680.14 465,589.24 3.16 4,842.96 11,100.0 73.05 221.21 5,085.0 5,027.5 - 7,427.0 - 4,274.0 6,023,606.66 465,528.03 3.16 4,910.12 11,200.0 73.05 224.51 5,114.1 5,056.6 - 7,497.1 - 4,339.1 6,023,536.83 465,462.69 3.16 4,981.09 11,300.0 73.05 227.81 5,143.3 5,085.8 - 7,563.3 - 4,408.0 6,023,470.87 465,393.44 3.16 5,055.64 11,400.0 73.05 231.11 5,172.4 5,114.9 - 7,625.5 - 4,480.7 6,023,409.01 465,320.51 3.16 5,133.51 11,500.0 73.05 234.41 5,201.6 5,144.1 - 7,683.3 - 4,556.9 6,023,351.45 465,244.14 3.16 5,214.44 11,600.0 73.05 237.71 5,230.7 5,173.2 - 7,736.7 - 4,636.2 6,023,298.38 465,164.58 3.16 5,298.18 11,700.0 73.05 241.01 5,259.9 5,202.4 - 7,785.5 - 4,718.5 6,023,249.97 465,082.10 3.16 5,384.44 8119/2008 2:31:24PM Page 6 COMPASS 2003.16 Build 428 • . al . Sperry Drilling Services H A L L I B U R TO N Standard Proposal Report Database: ..EDMAlaska Local Co- ordinate Reference: Well ODSN -43 - Slot ODS-43 Company: Well Planning - Pioneer - Oooguruk ND Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: - True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey I Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N /-S +E/ -W Northing Easting DLS Vert Section 1 (ft) (T) (bearing) (ft) ft (ft) (ft) (ft) (ft) 5,231.53 11,800.0 73.05 244.31 5,289.0 5,231.5 - 7,829.4 - 4,803.5 6,023,206.40 464,996.97 3.16 5,472.93 11,900.0 73.05 247.61 5,318.2 5,260.7 - 7,868.4 - 4,890.8 6,023,167.80 464,909.47 3.16 5,563.37 12,000.0 73.05 250.91 5,347.3 5,289.8 - 7,902.2 - 4,980.3 6,023,134.30 464,819.89 3.16 5,655.45 12,100.0 73.05 254.21 5,376.5 5,319.0 - 7,930.9 - 5,071.5 6,023,106.01 464,728.54 3.16 5,748.86 12,200.0 73.05 257.51 5,405.6 5,348.1 - 7,954.3 - 5,164.3 6,023,083.03 464,635.71 3.16 5,843.30 12,300.0 73.05 260.81 5,434.8 5,377.3 - 7;972.2 - 5,258.2 6,023,065.43 464,541.70 3.16 5,938.46 12,400.0 73.05 264.11 5,463.9 5,406.4 - 7,984.8 - 5,353.0 6,023,053.27 464,446.85 3.16 6,034.01 12,500.0 73.05 267.41 5,493.1 5,435.6 - 7,991.9 - 5,448.4 6,023,046.59 464,351.44 3.16 6,129.65 12,600.0 73.05 270.71 5,522.2 5,464.7 - 7,993.4 - 5,544.1 6,023,045.41 464,255.82 3.16 6,225.05 12,700.0 73.05 274.01 5,551.4 5,493.9 - 7,989.5 - 5,639.6 6,023,049.74 464,160.28 3.16 6,319.89 12,800.0 73.05 277.31 5,580.5 5,523.0 - 7,980.0 - 5,734.8 6,023,059.56 464,065.15 3.16 6,413.87 12,900.0 73.05 280.61 5,609.7 5,552.2 - 7,965.1 - 5,829.3 6,023,074.84 463,970.75 3.16 6,506.67 13,000.0 73.05 283.91 5,638.8 5,581.3 - 7,944.8 - 5,922.7 6,023,095.53 463,877.38 3.16 6,597.99 13,100.0 73.05 287.21 5,668.0 5,610.5 - 7,919.2 - 6,014.9 6,023,121.56 463,785.35 3.16 6,687.52 13,200.0 73.05 290.51 5,697.1 5,639.6 - 7,888.2 - 6,105.4 6,023,152.85 463,694.98 3.16 6,774.96 13,300.0 73.05 293.81 5,726.3 5,668.8 - 7,852.2 - 6,194.0 6,023,189.28 463,606.56 3.16 6,860.02 13,400.0 73.05 297.11 5,755.4 5,697.9 - 7,811.0 - 6,280.3 6,023,230.75 463,520.38 3.16 6,942.43 13,500.0 73.05 300.41 5,784.5 5,727.0 - 7,765.0 - 6,364.2 6,023,277.11 463,436.73 3.16 7,021.91 13,600.0 73.05 303.71 5,813.7 5,756.2 - 7,714.3 - 6,445.2 6,023,328.20 463,355.89 3.16 7,098.19 13,700.0 73.05 307.01 5,842.8 5,785.3 - 7,658.9 - 6,523.2 6,023,383.87 463,278.12 3.16 7,171.02 13,800.0 73.05 310.31 5,872.0 5,814.5 - 7,599.2 - 6,597.9 6,023,443.91 463,203.69 3.16 7,240.16 13,900.0 73.05 313.61 5,901.1 5,843.6 - 7,535.2 - 6,669.0 6,023,508.15 463,132.84 3.16 7,305.39 13,911.4 73.05 313.99 5,904.5 5,847.0 - 7,527.7 - 6,676.9 6,023,515.73 463,125.00 3.16 7,312.56 End Dir 13911.40' MD, 5904.50' ND 13,971.5 73.05 315.97 5,922.0 5,864.5 - 7,487.0 - 6,717.5 6,023,556.50 463,084.52 3.16 7,349.48 14,000.0 73.05 315.97 5,930.3 5,872.8 - 7,467.4 - 6,736.5 6,023,576.20 463,065.64 0.00 7,366.65 14,100.0 73.05 315.97 5,959.4 5,901.9 - 7,398.6 - 6,803.0 6,023,645.24 462,999.44 0.00 7,426.83 14,200.0 73.05 315.97 5,988.6 5,931.1 - 7,329.9 - 6,869.5 6,023,714.28 462,933.25 0.00 7,487.01 14,300.0 73.05 315.97 6,017.7 5,960.2 - 7,261.1 - 6,935.9 6,023,783.32 462,867.05 0.00 7,547.19 14,400.0 73.05 315.97 6,046.9 5,989.4 - 7,192.3 - 7,002.4 6,023,852.37 462,800.85 0.00 7,607.37 14,471.0 73.05 315.97 6,067.6 6,010.1 - 7,143.5 - 7,049.6 6,023,901.39 462,753.86 0.00 7,650.10 Begin 300.00' MD ESP Tanget 14,500.0 73.05 315.97 6,076.0 6,018.5 - 7,123.5 - 7,068.9 6,023,921.41 462,734.66 0.00 7,667.56 14,600.0 73.05 315.97 6,105.2 6,047.7 - 7,054.7 - 7,135.4 6,023,990.45 462,668.46 0.00 7,727.74 14,700.0 73.05 315.97 6,134.3 6,076.8 - 6,986.0 - 7,201.9 6,024,059.49 462,602.27 0.00 7,787.92 14,711.2 73.05 315.97 6,137.6 6,080.1 - 6,978.3 - 7,209.3 6,024,067.22 462,594.85 0.00 7,794.66 Start Dir 3.00/100' 14711.20' MD, 6137.60' TVD 14,776.4 75.00 316.18 6,155.5 6,098.0 - 6,933.1 - 7,252.8 6,024,112.52 462,551.58 3.00 7,833.98 I 7 5/8" - PN14 v11 T1 1 14,800.0 75.71 316.18 6,161.5 6,104.0 - 6,916.6 - 7,268.6 6,024,129.08 462,535.82 3.00 7,848.30 14,900.0 78.71 316.17 6,183.6 6,126.1 - 6,846.3 - 7,336.1 6,024,199.69 462,468.59 3.00 7,909.38 15,000.0 81.71 316.17 6,200.6 6,143.1 - 6,775.2 - 7,404.4 6,024,271.04 462,400.65 3.00 7,971.10 I 15,100.0 84.71 316.16 6,212.5 6,155.0 - 6,703.6 - 7,473.1 6,024,342.93 462,332.19 3.00 8,033.31 15,145.1 86.06 316.16 6,216.1 6,158.6 - 6,671.2 - 7,504.3 6,024,375.48 462,301.18 3.00 8,061.48 i End Dir 15145.10' MD, 6216.10' ND 8/19/2008 2:31:24PM Page 7 COMPASS 2003.16 Build 428 . 0 • �*�,w11 Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N /-S +E/ -W Northing Easting DLS Vert Section i (ft) ( ?) (bearing) - (ft) ft (ft) - (ft) (ft) (ft) 6,162.35 15,200.0 86.06 316.16 6,219.8 6,162.3 - 6,631.7 - 7,542.2 6,024,415.13 462,263.41 0.00 8,095.80 15,300.0 86.06 316.16 6,226.7 6,169.2 - 6,559.7 - 7,611.3 6,024,487.36 462,194.61 0.00 8,158.31 15,400.0 86.06 316.16 6,233.6 6,176.1 - 6,487.7 - 7,680.4 6,024,559.59 462,125.80 0.00 8,220.82 15,500.0 86.06 316.16 6,240.4 6,182.9 - 6,415.8 - 7,749.5 6,024,631.82 462,057.00 0.00 8,283.33 15,600.0 86.06 316.16 6,247.3 6,189.8 - 6,343.8 - 7,818.6 6,024,704.04 461,988.20 0.00 8,345.85 15,609.9 86.06 316.16 6,248.0 6,190.5 - 6,336.7 - 7,825.5 6,024,711.19 461,981.38 0.00 8,352.04 Start Dir 3.00/100' 15609.90' MD, 6248.00' ND 15,700.0 88.76 316.29 6,252.1 6,194.6 - 6,271.7 - 7,887.7 6,024,776.43 461,919.39 3.00 8,408.35 15,741.3 90.00 316.35 6,252.5 6,195.0 - 6,241.9 - 7,916.2 6,024,806.40 461,891.00 3.00 8,434.13 PN14 v11 T2 15,800.0 91.75 316.16 6,251.6 6,194.1 - 6,199.5 - 7,956.8 6,024,848.96 461,850.59 3.00 8,470.83 15,900.0 94.73 315.82 6,246.0 6,188.5 - 6,127.7 - 8,026.2 6,024,921.03 461,781.53 3.00 8,533.62 16,000.0 97.71 315.48 6,235.1 6,177.6 - 6,056.6 - 8,095.7 6,024,992.39 461,712.34 3.00 8,596.59 16,002.8 97.80 315.47 6,234.7 6,177.2 - 6,054.6 - 8,097.6 6,024,994.37 461,710.40 3.00 8,598.35 End Dir 16002.80' MD, 6234.70' ND 16,100.0 97.80 315.47 6,221.5 6,164.0 - 5,986.0 - 8,165.1 6,025,063.29 461,643.15 0.00 8,659.59 16,200.0 97.80 315.47 6,208.0 6,150.5 - 5,915.3 - 8,234.6 6,025,134.20 461,573.97 0.00 8,722.59 16,300.0 97.80 315.47 6,194.4 6,136.9 - 5,844.7 - 8,304.1 6,025,205.10 461,504.79 0.00 8,785.59 16,400.0 97.80 315.47 6,180.9 6,123.4 - 5,774.1 - 8,373.6 6,025,276.01 461,435.60 0.00 8,848.60 16,489.4 97.80 315.47 6,168.7 6,111.2 - 5,710.9 - 8,435.7 6,025,339.40 461,373.75 0.00 8,904.92 Start Dir 3.00/100' 16489.40' MD, 6168.70' ND 16,500.0 97.53 315.65 6,167.3 6,109.8 - 5,703.4 - 8,443.0 6,025,346.93 461,366.43 2.99 8,911.59 16,600.0 95.04 317.33 6,156.4 6,098.9 - 5,631.3 - 8,511.5 6,025,419.28 461,298.30 3.00 8,973.41 16,700.0 92.54 318.99 6,149.8 6,092.3 - 5,557.0 - 8,578.0 6,025,493.87 461,232.06 3.00 9,033.18 16,800.0 90.04 320.65 6,147.5 6,090.0 - 5,480.6 - 8,642.5 6,025,570.50 461,167.88 3.00 9,090.71 16,801.6 90.00 320.67 6,147.5 6,090.0 - 5,479.4 - 8,643.5 6,025,571.70 461,166.90 3.00 9,091.59 PN14 v11 T3 16,900.0 87.06 320.92 6,150.0 6,092.5 - 5,403.2 - 8,705.7 6,025,648.20 461,105.01 3.00 9,146.85 16,951.4 85.52 321.04 6,153.4 6,095.9 - 5,363.3 - 8,738.0 6,025,688.17 461,072.89 3.00 9,175.51 End Dir 16951.40' MD, 6153.40' ND 17,000.0 85.52 321.04 6,157.2 6,099.7 - 5,325.7 - 8,768.5 6,025,725.97 461,042.58 0.00 9,202.55 17,100.0 85.52 321.04 6,165.0 6,107.5 - 5,248.1 - 8,831.1 6,025,803.74 460,980.22 0.00 9,258.17 17,200.0 85.52 321.04 6,172.8 6,115.3 - 5,170.6 - 8,893.8 6,025,881.51 460,917.86 0.00 9,313.80 I 17,300.0 85.52 321.04 6,180.6 6,123.1 - 5,093.1 - 8,956.5 6,025,959.28 460,855.50 0.00 9,369.42 17,400.0 85.52 321.04 6,188.4 6,130.9 - 5,015.6 - 9,019.2 6,026,037.05 460,793.15 0.00 9,425.05 17,500.0 85.52 321.04 6,196.2 6,138.7 - 4,938.0 - 9,081.9 6,026,114.82 460,730.79 0.00 9,480.67 17,600.0 85.52 321.04 6,204.0 6,146.5 - 4,860.5 - 9,144.5 6,026,192.60 460,668.43 0.00 9,536.30 17,612.8 85.52 321.04 6,205.0 6,147.5 - 4,850.6 - 9,152.6 6,026,202.55 460,660.45 0.00 9,543.42 l Start Dir 3.00/100' 17612.80' MD, 6205.00' ND j 17,700.0 87.56 319.41 6,210.3 6,152.8 - 4,783.7 - 9,208.3 6,026,269.66 460,605.04 3.00 9,593.01 ! 17,800.0 89.90 317.53 6,212.5 6,155.0 - 4,708.9 - 9,274.5 6,026,344.75 460,539.07 3.00 9,652.45 I 17,804.1 90.00 317.45 6,212.5 6,155.0 - 4,705.8 - 9,277.3 6,026,347.80 460,536.30 3.00 9,654.96 I PN14 v11 T4 17,900.0 92.87 317.70 6,210.1 6,152.6 - 4,635.1 - 9,342.0 6,026,418.80 460,471.94 3.00 9,713.15 18,000.0 95.85 317.96 6,202.5 6,145.0 - 4,561.2 - 9,408.9 6,026,492.96 460,405.32 3.00 9,773.32 8/19/2008 2 :31 :24PM Page 8 COMPASS 2003.16 Build 428 0 • t R Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: - ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/ -W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) (ft) (ft) 6,136.19 18,072.9 98.03 318.15 6,193.7 6,136.2 - 4,507.4 - 9,457.3 6,026,546.97 460,357.18 3.00 9,816.77 End Dir 18072.90' MD, 6193.70' TVD 18,100.0 98.03 318.15 6,189.9 6,132.4 - 4,487.4 - 9,475.2 6,026,567.03 460,339.36 0.00 9,832.85 j 18,200.0 98.03 318.15 6,175.9 6,118.4 - 4,413.6 - 9,541.2 6,026,641.05 460,273.60 0.00 9,892.18 18,300.0 98.03 318.15 6,161.9 6,104.4 - 4,339.9 - 9,607.3 6,026,715.07 460,207.85 0.00 9,951.50 18,400.0 98.03 318.15 6,148.0 6,090.5 - 4,266.1 - 9,673.4 6,026,789.09 460,142.09 0.00 10,010.82 18,500.0 98.03 318.15 6,134.0 6,076.5 - 4,192.3 - 9,739.4 6,026,863.11 460,076.33 0.00 10,070.15 18,504.1 98.03 318.15 6,133.4 6,075.9 - 4,189.3 - 9,742.1 6,026,866.14 460,073.64 0.00 10,072.58 Start Dir 3.00/100' 18504.10' MD, 6133.40' TVD 18,600.0 95.46 316.86 6,122.2 6,064.7 - 4,119.1 - 9,806.5 6,026,936.61 460,009.60 3.00 10,130.49 18,700.0 92.77 315.52 6,115.0 6,057.5 - 4,047.1 - 9,875.5 6,027,008.85 459,940.86 3.00 10,192.94 18,800.0 90.08 314.20 6,112.5 6,055.0 - 3,976.6 - 9,946.3 6,027,079.64 459,870.30 3.00 10,257.32 18,802.9 90.00 314.16 6,112.5 6,055.0 - 3,974.6 - 9,948.5 6,027,081.70 459,868.20 3.00 10,259.24 PN14 v11 T5 18,900.0 87.09 314.22 6,115.0 6,057.5 - 3,906.9 - 10,018.0 6,027,149.59 459,798.91 3.00 10,322.60 19,000.0 84.09 314.28 6,122.7 6,065.2 - 3,837.4 - 10,089.4 6,027,219.44 459,727.79 3.00 10,387.63 19,001.2 84.05 314.28 6,122.8 6,065.3 - 3,836.6 - 10,090.3 6,027,220.27 459,726.94 3.00 10,388.40 End Dir 19001.20' MD, 6122.80' TVD 19,100.0 84.05 314.28 6,133.0 6,075.5 - 3,767.9 - 10,160.7 6,027,289.16 459,656.87 0.00 10,452.46 19,200.0 84.05 314.28 6,143.4 6,085.9 - 3,698.5 - 10,231.9 6,027,358.88 459,585.95 0.00 10,517.29 19,300.0 84.05 314.28 6,153.7 6,096.2 - 3,629.1 - 10,303.1 6,027,428.59 459,515.02 0.00 10,582.13 19,400.0 84.05 314.28 6,164.1 6,106.6 - 3,559.6 - 10,374.3 6,027,498.31 459,444.10 0.00 10,646.96 19,500.0 84.05 314.28 6,174.5 6,117.0 - 3,490.2 - 10,445.5 6,027,568.03 459,373.18 0.00 10,711.79 19,600.0 84.05 314.28 6,184.8 6,127.3 - 3,420.8 - 10,516.7 6,027,637.75 459,302.26 0.00 10,776.63 19,621.5 84.05 314.28 6,187.0 6,129.5 - 3,405.8 - 10,532.0 6,027,652.74 459,287.01 0.00 10,790.57 Start Dir 3.00/100' 19621.50' MD, 6187.00' TVD 19,700.0 86.37 313.85 6,193.6 6,136.1 - 3,351.4 - 10,588.2 6,027,707.36 459,231.03 3.00 10,841.78 19,800.0 89.32 313.31 6,197.4 6,139.9 - 3,282.6 - 10,660.6 6,027,776.53 459,158.94 3.00 10,907.83 19,823.1 90.00 313.18 6,197.5 6,140.0 - 3,266.7 - 10,677.4 6,027,792.40 459,142.20 3.00 10,923.17 PN14 v11 T6 19,900.0 92.30 313.00 6,196.0 6,138.5 - 3,214.2 - 10,733.6 6,027,845.17 459,086.26 3.00 10,974.50 19,987.6 94.92 312.80 6,190.4 6,132.9 - 3,154.7 - 10,797.6 6,027,904.93 459,022.47 3.00 11,033.06 End Dir 19987.60' MD, 6190.40' TVD 20,000.0 94.92 312.80 6,189.4 6,131.9 - 3,146.3 - 10,806.7 6,027,913.36 459,013.44 0.00 11,041.35 20,100.0 94.92 312.80 6,180.8 6,123.3 - 3,078.6 - 10,879.8 6,027,981.34 458,940.62 0.00 11,108.22 20,200.0 94.92 312.80 6,172.2 6,114.7 - 3,010.9 - 10,952.9 6,028,049.33 458,867.80 0.00 11,175.09 20,300.0 94.92 312.80 6,163.6 6,106.1 - 2,943.2 - 11,026.0 6,028,117.31 458,794.98 0.00 11,241.97 20,400.0 94.92 312.80 6,155.1 6,097.6 - 2,875.5 - 11,099.1 6,028,185.29 458,722.16 0.00 11,308.84 20,500.0 94.92 312.80 6,146.5 6,089.0 - 2,807.8 - 11,172.2 6,028,253.27 458,649.34 0.00 11,375.71 20,600.0 94.92 312.80 6,137.9 6,080.4 - 2,740.1 - 11,245.3 6,028,321.26 458,576.52 0.00 11,442.58 20,620.7 94.92 312.80 6,136.1 6,078.6 - 2,726.1 - 11,260.4 6,028,335.33 458,561.44 0.00 11,456.42 Start Dir 3.00/100' 20620.70' MD, 6136.10' TVD 20,700.0 92.98 314.18 6,130.7 6,073.2 - 2,671.7 - 11,317.8 6,028,390.00 458,504.28 3.00 11,508.81 20,800.0 90.53 315.92 6,127.6 6,070.1 - 2,600.9 - 11,388.4 6,028,461.01 458,433.97 3.00 11,572.92 1 8/19/2008 2 :31 :24PM Page 9 COMPASS 2003.16 Build 42B • • n Sperry Drilling Services HALLIBURTOf Standard Proposal Report Database: ..EDM_Alaska Local Co Reference: Well ODSN -43 - Slot ODS-43 Company: Well Planning - Pioneer - Oooguruk ND Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: - Oooguruk Drill Site North Reference: True Well: _ ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Planned Survey Measured - Vertical Map Map Depth Inclination Azimuth Depth TVDss +N / -S - +E/ -W Northing Easting DLS Vert Section (ft) ( ?) (bearing) (ft) ft (ft) (ft) (ft) (ft) 6,070.00 20,821.8 90.00 316.30 6,127.5 6,070.0 - 2,585.2 - 11,403.6 6,028,476.80 458,418.90 3.00 11,586.62 PN14 v11 T7 20,900.0 87.65 316.30 6,129.1 6,071.6 - 2,528.7 - 11,457.5 6,028,533.51 458,365.14. 3.00 11,635.44 20,913.2 87.26 316.30 6,129.7 6,072.2 - 2,519.2 - 11,466.7 6,028,543.08 458,356.07 3.00 11,643.68 End Dir 20913.20' MD, 6129.70' TVD 21,000.0 87.26 316.30 6,133.8 6,076.3 - 2,456.5 - 11,526.6 6,028,605.99 458,296.43 0.00 11,697.84 21,100.0 87.26 316.30 6,138.6 6,081.1 - 2,384.3 - 11,595.6 6,028,678.47 458,227.71 0.00 11,760.24. 21,200.0 87.26 316.30 6,143.4 6,085.9 - 2,312.1 - 11,664.6 6,028,750.95 458,159.00 0.00 11,822.65 21,300.0 87.26 316.30 6,148.2 6,090.7 - 2,239.9 - 11,733.6 6,028,823.44 458,090.29 . 0.00 11,885.05 21,400.0 87.26 316.30 6,153.0 6,095.5 - 2,167.7 - 11,802.6 6,028,895.92 458,021.57 0.00 11,947.45 21,500.0 87.26 316.30 6,157.7 6,100.2 - 2,095.5 - 11,871.6 6,028,968.40 457,952.86 0.00 12,009.85 21,600.0 87.26 316.30 6,162.5 6,105.0 - 2,023.3 - 11,940.6 6,029,040.88 457,884.15 0.00 12,072.25 21,700.0 87.26 316.30 6,167.3 6,109.8 - 1,951.0 - 12,009.7 6,029,113.36 457,815.43 0.00 12,134.65 21,767.2 87.26 316.30 6,170.5 6,113.0 - 1,902.5 - 12,056.0 6,029,162.07 457,769.26 0.00 12,176.58 Start Dir 3.00/100' 21767.20' MD, 6170.50' TVD 21,800.0 88.24 316.30 6,171.8 6,114.3 - 1,878.8 - 12,078.7 6,029,185.85 457,746.71 3.00 12,197.06 21,830.1 89.15 316.30 6,172.5 6,115.0 - 1,857.1 - 12,099.5 6,029,207.70 457,726.00 3.00 12,215.87 End Dir 21830.10' MD, 6172.50' TVD - PN14 v11 T8 21,900.0 89.15 316.30 6,173.5 6,116.0 - 1,806.5 - 12,147.8 6,029,258.41 457,677.93 0.00 12,259.52 22,000.0 89.15 316.30 6,175.0 6,117.5 - 1,734.3 - 12,216.9 6,029,330.96 457,609.15 0.00 12,321.99 22,100.0 89.15 316.30 6,176.5 6,119.0 - 1,662.0 - 12,285.9 6,029,403.52 457,540.36 0.00 12,384.46 22,200.0 89.15 316.30 6,178.0 6,120.5 - 1,589.7 - 12,355.0 6,029,476.08 457,471.58 0.00 12,446.92 22,300.0 89.15 316.30 6,179.5 6,122.0 - 1,517.4 - 12,424.1 6,029,548.63 457,402.79 0.00 12,509.39 22,400.0 89.15 316.30 6,181.0 6,123.5 - 1,445.1 - 12,493.2 6,029,621.19 457,334.01 0.00 12,571.85 22,500.0 89.15 316.30 6,182.5 6,125.0 - 1,372.8 - 12,562.3 6,029,693.74 457,265.22 0.00 12,634.32 22,600.0 89.15 316.30 6,184.0 6,126.5 - 1,300.6 - 12,631.4 6,029,766.30 457,196.44 0.00 12,696.79 22,700.0 89.15 316.30 6,185.5 6,128.0 - 1,228.3 - 12,700.5 6,029,838.86 457,127.65 0.00 12,759.25 22,800.0 89.15 316.30 6,186.9 6,129.4 - 1,156.0 - 12,769.5 6,029,911.41 457,058.87 0.00 12,821.72 • 22,837.6 89.15 316.30 6,187.5 .6,130.0 - 1,128.8 - 12,795.5 6,029,938.70 457,033.00 0.00 12,845.21 Total Depth at 22837.60' MD, 6187.50' ND - PN14 v11 T9 8/19/2008 2:31:24PM Page 10 COMPASS 2003.16 Build 428 • • Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS Company: Well Planning - Pioneer - Oooguruk TVD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: - Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN -43 PN14 wp11 - Targets Target Name - hit/miss target Dip Angle Dip Dir. TVD +N/-S +E/ -W Northing Easting -Shape ( ?). (bearing (ft) (ft) (ft) (ft) (ft) PN14 v11 T7 0.00 0.00 6,127.5 - 2,585.2 - 11,403.6 6,028,476.80 458,418.90 - plan hits target - Point PN14 v8 Curve 0.00 0.00 4,985.0 - 7,164.0 - 4,078.0 6,023,868.79 465,725.07 - plan hits target - Point PN14 v11 T1 0.00 0.00 6,155.5 - 6,933.1 - 7,252.8 6,024,112.52 462,551.58 - plan hits target - Point PN14 v11 T8 0.00 0.00 6,172.5 - 1,857.1 - 12,099.5 6,029,207.70 457,726.00 - plan hits target - Point PN14 v11 T3 0.00 0.00 6,147.5 - 5,479.4 - 8,643.5 6,025,571.70 461,166.90 - plan hits target - Point Geo Poly PN14 0.00 0.00 6,155.0 - 7,148.9 - 7,238.9 6,023,896.74 462,564.54 - plan misses by 147.4ft at 14618.6ft MD (6110.6 TVD, - 7041.9 N, - 7147.8 E) - Polygon Point 1 6,155.0 - 7,148.9 - 7,238.9 6,023,896.74 462,564.54 Point 2 6,155.0 - 6,300.8 - 8,070.5 6,024,748.12 461,736.47 Point 3 6,155.0 - 5,422.6 - 8,901.5 6,025,629.60 460,909.13 Point 4 6,155.0 - 4,529.4 - 9,680.5 6,026,525.86 460,133.84 Point 5 6,155.0 - 3,627.6 - 10,589.9 6,027,431.25 459,228.20 Point 6 6,155.0 - 2,821.3 - 11,474.0 6,028,241.05 458,347.46 Point 7 6,155.0 - 2,014.1 - 12,268.5 6,029,051.39 457,556.33 Point 8 6,155.0 - 1,086.2 - 13,180.4 6,029,982.89 456,648.29 Point 9 6,155.0 -740.9 - 12,821.7 6,030,326.70 457,008.35 Point 10 6,155.0 - 1,694.7 - 11,936.7 6,029,369.41 457,889.39 Point 11 6,155.0 - 2,508.5 - 11,174.5 6,028,552.60 458,648.20 Point 12 6,155.0 - 3,341.1 - 10,312.7 6,027,716.60 459,506.53 Point 13 6,155.0 - 4,286.7 - 9,412.8 6,026,767.45 460,402.49 Point 14 6,155.0 - 5,225.8 - 8,637.8 6,025,825.31 461,173.60 Point 15 6,155.0 - 6,162.3 - 7,783.3 6,024,885.44 462,024.20 Point 16 6,155.0 - 6,955.0 - 7,038.5 6,024,089.81 462,765.70 PN14 v11 T6 0.00 0.00 6,197.5 - 3,266.7 - 10,677.4 6,027,792.40 459,142.20 - plan hits target - Point PN14 v11 T9 0.00 0.00 6,187.5 - 1,128.8 - 12,795.5 6,029,938.70 457,033.00 - plan hits target - Point PN14 v11 T2 0.00 0.00 6,252.5 - 6,241.9 - 7,916.2 6,024,806.40 461,891.00 - plan hits target - Point PN14 v11 T4 0.00 0.00 6,212.5 - 4,705.8 - 9,277.3 6,026,347.80 460,536.30 - plan hits target - Point PN14 v11 T5 0.00 0.00 6,112.5 - 3,974.6 - 9,948.5 6,027,081.70 459,868.20 - plan hits target - Point 8/19/2008 2:31:24PM Page 11 COMPASS 2003.16 Build 42B , • • Sperry Drilling Services HALLIBURTON Standard Proposal Report Database: ..EDM_Alaska Local Co- ordinate Reference: Well ODSN - 43 - Slot ODS Company:. Well Planning - Pioneer - Oooguruk ND Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Project: Oooguruk Developement MD Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Site: Oooguruk Drill Site North Reference: True Well: ODSN - 43 Survey Calculation Method: Minimum Curvature Wellbore: ODSN - 43 PN14 Design: ODSN - 43 PN14 wp11 Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (in). (in) 5,000.0 3,307.0 10 3/4" 10.750 12.250 14,776.4 6,155.5 7 5/8" 7.625 8.750 Plan Annotations Measured Vertical - Local Coordinates Depth Depth +NhS +E/-W (ft) (ft) (ft) (ft) Comment 300.0 300.0 0.0 0.0 Start Dir 1.00/100' 300.00' MD, 300.00' TVD 600.0 599.9 -7.4 2.7 Start Dir 2.00/100' 600.00' MD, 599.90' TVD 750.0 749.4 -18.4 6.7 Start Dir 3.00/100' 750.00' MD, 749.40' TVD 1,004.5 1,000.0 -59.2 21.5 Start Dir 1.50/100' 1004.50' MD, 1000.00' TVD 1,692.1 1,650.0 -267.0 97.2 End Dir 1692.10' MD, 1650.00' TVD 1,801.5 1,750.0 -308.8 112.4 Start Dir 3.50/100' 1801.50' MD, 1750.00' TVD 3,635.0 2,909.1 - 1,582.7 -171.4 End Dir 3635.00' MD, 2909.10' TVD 10,756.9 4,985.0 - 7,164.0 - 4,078.0 Start Dir 3.16/100' 10756.90' MD, 4985.00' TVD 13,911.4 5,904.5 - 7,527.7 - 6,676.9 End Dir 13911.40' MD, 5904.50' TVD 14,471.0 6,067.6 - 7,143.5 - 7,049.6 Begin 300.00' MD ESP Tanget 14,711.2 6,137.6 - 6,978.3 - 7,209.3 Start Dir 3.00/100' 14711.20' MD, 6137.60' TVD 15,145.1 6,216.1 - 6,671.2 - 7,504.3 End Dir 15145.10' MD, 6216.10' TVD 15,609.9 6,248.0 - 6,336.7 - 7,825.5 Start Dir 3.00/100' 15609.90' MD, 6248.00' TVD 16,002.8 6,234.7 - 6,054.6 - 8,097.6 End Dir 16002.80' MD, 6234.70' TVD 16,489.4 6,168.7 - 5,710.9 - 8,435.7 Start Dir 3.00/100' 16489.40' MD, 6168.70' TVD 16,951.4 6,153.4 - 5,363.3 - 8,738.0 End Dir 16951.40' MD, 6153.40' TVD 17,612.8 6,205.0 - 4,850.6 - 9,152.6 Start Dir 3.00/100' 17612.80' MD, 6205.00' TVD 18,072.9 6,193.7 - 4,507.4 - 9,457.3 End Dir 18072.90' MD, 6193.70' TVD 18,504.1 6,133.4 - 4,189.3 - 9,742.1 Start Dir 3.00/100' 18504.10' MD, 6133.40' TVD 19,001.2 6,122.8 - 3,836.6 - 10,090.3 End Dir 19001.20' MD, 6122.80' TVD 19,621.5 6,187.0 - 3,405.8 - 10,532.0 Start Dir 3.00/100' 19621.50' MD, 6187.00' TVD 19,987.6 6,190.4 - 3,154.7 - 10,797.6 End Dir 19987.60' MD, 6190.40' TVD 20,620.7 6,136.1 - 2,726.1 - 11,260.4 Start Dir 3.00/100' 20620.70' MD, 6136.10' TVD 20,913.2 6,129.7 - 2,519.2 - 11,466.7 End Dir 20913.20' MD, 6129.70' TVD 21,767.2 6,170.5 - 1,902.5 - 12,056.0 Start Dir 3.00/100' 21767.20' MD, 6170.50' TVD 21,830.1 6,172.5 - 1,857.1 - 12,099.5 End Dir 21830.10' MD, 6172.50' TVD 22,837.6 6,187.5 - 1,128.8 - 12,795.5 Total Depth at 22837.60' MD, 6187.50' TVD 8/19/2008 2:31:24PM Page 12 COMPASS 2003.16 Build 428 SURVEY PROGRAM ANTI COLLISION SETTINGS Date: 2008- 118- 19T00:00:00 Validated: Yes Version: Interpolation Method: MD, interval: 25.0 ODSN - 43 Depth Range From: 2000.0 To 22837.6 44.0 2837.6 ODSN From Depth To 4 Results Limited By: Centre Distance: 2479.4 P PN14 wpl 1 Cool Reference: Plan: ODSN -43 PN14 wp11 (ODSN- 43 /0DSN -43 PN14) 1200.0 22837.6 ODSN PN14 wp2l M WD+S wD +SAG+ CA +nFR +MS Scan Type: GLOBAL FILTER APPLIED: All wellpaths within 200'+ 100/1000 of reference z . ODSN -40 PN12 ' Range 2000' - 2500' 0 Major Risk t 1 �� Q 330 1 From Color To MD 330 ,."` �� 30""`•� , 30 7 44 250 250 - soo �"rrr 500 - 100 20 „,� 750 --- 1000 • 1000 1250 300 7 60 • 300 - 60 125 - 1500 . 51 1500 - 1750 1750 • 2000 2000 - 2250 2250 - 2500 zs0o .........__.. 2750 2 2750 - 3008 300° 3250 3250 - aseo 270 - „ ......._:._.;......_.... ........_.....,......... _....._._,,._. 90 3500 - 3750 ' 3]50 ................ 400 270 - - . - - • 90 4000 5000 8000 7000 1.0....--' __ .............„...„7„ ) 7°00 5000 8000 - 9000 2 9000 0 100 240 120 moo - noon sss"'"" 1100° 1200 °+. 20..._.- - 12000 13000 • 13000 14000 14000 - 15000 240 50 120 15000 17000 210 % 150 - -- ,_.._ 0 ,w 17000 leoon - 180 19000 --- 20000 75 2000 2100 21000 - 22000 22000 23000 Travelling Cylinder Azimuth (TFO+AZI) (hearing( vs Centre to Centre Separation 120 ftfinl 210 150 • SECTION DETAILS 101 Sac. MD Mc An 44 0 0 •11 169. •El -W DLeg 1Pa VSec Target 180 2 300 0 00 3000 00 00 000 00 00 3 600 30 860.00 599.9 7.4 27 1.00 1600 -20 4 7500 80 1600 7494 -18 67 200 0 -5.1 5 10045 1364 1000 100.0 -S9.2 21.5 3.00 0 .133 6 1692.1 2395 100 1850.0 -2870 97.2 1.S0 0.00 -733 7 10015 2395 180 0 1750.0 -300.8 112.4 0.00 000 -848 a 24773 450 1800 23058 -682.0 180.0 3.50 37.06 -994 Travelling Cylinder Azimuth (TFO +AZT) [bearing] vs Centre to Centre Separation 150 ft /inl 9 3635.0 730 21499 2909.1 - 1582.7 -1714 3.50 5761 3030 10 10756 9 73 05 21499 4985 0 - 71630 -4078.0 0.0 0.00 4691.8 P1414 90 6248 11 10911.4 73.05 214.99 50330 7285.1 -4182.7 30 00 4786.8 12 139113 73.05 313.99 5904.5 .7527.8 .0676.9 3.16 9000 7312.6 13 13971.5 73.05 31537 59220 - 74870 - 67173 3.16 0 73495 14 147112 73 05 315.97 8137.6 3970.3 -720.3 0.00 300 7794 6 REFERENCE INFORMATION 15 14770.4 7500 316.18 6155.5 39311 - 7252.8 3.00 587 78343 P01481111 Well Planning - Pioneer - Oooguruk 16 15145.1 86.06 31618 62181 -80711 .75033 330 3.11 0015 17 15609.9 8606 318.16 82490 3336.7 -78255 00 00 83520 Coordinate (N1E) Reference: Well ODSN -43 - Slot ODS-43, True North 18 157413 9030 31335 6252.5 3241.9 - 7916.2 300 2.82 8434.1 P8414611 02 C alculation Method: Minimum Curvature 19 16002.8 97.80 31547 02347 30543 30976 300 -6.40 8x904 Vertical (TVD) Reference: 44' + 13.5' @ 57.58 (Nabors 19AC) 20 1.89.4 9730 315.47 6168.7 -57109 - 0435.7 000 000 89045 .67 51475 -5479.4 Section (VS) Reference: Slot - ODS-43(0.0N, 0.0E) Error System: ISCWSA 22 16951.4 90. 32 5143.5 -54734 - 8 3.0 1 4514 9 1.5 P514 52 Measured Depth Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) Scan Method: Tray. Cylinder North 23 17612.8 0552 32104 6205.0 -48509 - 9152.8 000 1 0.00 95434 Calculation Method: Minimum Curvature 24 178°4! 9000 31745 6212.5 4705.8 - 9277.3 300 -36.77 9855.0 P8414 v11 74 Error Surface: Elliptical Conic 25 100729 98.03 318.15 6193.7 -4507.3 - 94573 300 492 9818.0 Warning Method: Rules Based 28 18504.1 98.03 318.15 81334 -4189.3 -9742.1 8.00 0.10 100728 • 9 271802.9 90.00 31418 8112.5 - 3974.8 -99405 3.0 -15346 10259.2 1514 811 05 28 1001.2 84 05 314 28 61223 3836.5 -10933 30 178 05 10303 29 196215 04.05 314.28 6187.5 - 3405.0 - 105320 0.00 0 0 107908 30 19823.1 900 31318 8197.5 - 32837- 1077.4 30 -1043 10923.2 1514 v11 TR NAD 27 ASP Zone 4 : WELL DETAILS: ODSN-43 31 199877 94.92 31280 810 - 3154.7 - 10797.6 300 - 438 11433.1 32 20821.7 94.02 31880 8127.1 - 2725.1 114034 3.0 4 115583 34 219138 0.00 316.30 8129.5 - 25192-114667 3.00 144.53 53 11843.8 vN14 811 77 Ground Level: 13.5 34 217612 87.28 316.30 88105 9 - 1900 5- 120556.00 3.00 1P 0.00 00 121786 +Nl -S +E/-W Northing Easting Latittude Longitude Slot 36 21830.1 89.19 316.30 5172.5 1857.1 - 12099.5 300 -001 122159 P1214v1115 0.0 0.0 6031015.46 469831.70 70° 29' 44.902 N 150° 14' 48.061 W ODS-43 37 22037.8 89 .25 310.30 6187.5 -1728.0 .1210.5 17.00 0.00 128412 P5114211 99 SURVEY PROGRAM ANTI COLLISION SETTINGS bate: 2008 08 19T00:00:00 Validated: Yes Version: ••' . Interpolation Method: MD, interval: 25.0 Depth Range From: 0.0 To 2000.0 Depth From Depth To Survey /Plan Tool .� ' Results Limited By: Centre Distance: 2479.4 44.0 1200.0 ODSN - 43 PN14 3vpl l CR GYRO SS Reference: Plan: ODSN -43 PN14 wp11 (ODSN- 43 /ODSN -43 PN14) 1200.0 22837.6 ODSN - 43 PN14 3Yp1 l Mv%T +SAG +CA +DFR +PTS Scan Type: NO GLOBAL FILTER: Using user defined selection 8, filtering criteria ODSDWI - 44 D +93 (rJL3SN -1s r' 4C1FJ>K11ivm ODSN -9i S4 Minor Risk 1 !10 ■ , ,;. , ,.° ODSN -12 PSi r 41.3 rNA, . ODSN - 16i IS1' ,151111 ODSN - 17 PS1 ) • I s 3 , 3g �;ta t From Color To MD I Range 0-73 17isp . ! ODSK 42 Kup n � 'Rarlgr. 0 -750' - -_ 7' ODSN-40 PN1 j.%.+tietar Risk 1/10 1 IODSDW2 -20 Dispos! sr 30 44 250 O '33 1 L• n �' i 2 50 500 , 1 Cz jS 4 41 I'+.3 o 4) � + to , � � � + i+ ODSN -38 PN1 ODSN 45i IN13 q r4 ®�. � 'I ODSN - 45i IN13 x ,�� + 500 750 Ran ge 0 1250' 330 it p ptit \ ~ 30 Minor Risk 1120 .,va. :. t , ODSN -34i IN� 750 - - 700 Minor Risk 1/20 ( +i /r 1' e 2 Y 1 ,t Z / r -_ 1000 1250 i �l a i Y ' n " ` `� ' `` l l { � ODSN•32i IN tlt� ODSN -40 PN1 • ODSK - KupH �$ �f � A + { l l , 1250 1500 / '1 1 1� t , .t � r � c , .. 1500 1750 fora/ . ',i tlftWi ,."~: 300 Jig 9y + �'� 6C ODSK -36i Kupa 1750 2000 300 '' Y %Sr 3"'r�' 60 �3d 4ti if s , rf,� 2000 2250 �` i. � 1 ` , s, Al + ... o, �` 3 tf rkl � �/`/►' rt tt3 : ,.7 2'C)s i (we ++ q r r �� - - , % ` 1 2250 2500 ��'/ % ♦ i i t tt %i + s S. "^ _ a w 1 :?,• , I' ,:•._ 2500 ____...... 2750 t 9 `"a ���� ' 2750 "" - 3000 2 i. • . .ii . ;, " 3000 3250 y 4 / • . . • j'','.'., � ., 3250 3500 270 - r�i --- - --- - 90 f e/ r ., ;"•i 1 ODSK - KupF 3500 3750 �� 270 _ :.:/'° �, s 90 3750 4000 qf r. iyy,r� r �.g111► r, 4000 5000 . � . ' 5000 6000 + aft (<', ` r ' o 10 II 2 6000 . i " , 7000 1 •,,,,,,,(N. A �l 1 7000 8000 1 240 f ' f 120 8000 9000 v ''- ` = tti 20-.✓ 9000 "-' 1000+ f:)0sK.Ein KupA 1, ' V • " 10000 11000 1 n {,t a ' 240 _ _ 50 120 ._.... a ;;. 2 11000 12000 - - 210 • '-„ ,,,,,, 150 12000 13000 13000 14000 180 75 14000 15000 15000 16000 16000 17000 Travelling Cylinder Azimuth (TFO+AZI) 'bearing! vs Centre to Centre Separation 120 ft /inl 210 - 150 17000 18000 5E3.0105000005 100 18000 ."°"""'._` 19000 s99 MD Inc AP ND .N,.s •E,-w Oleg trace VS9c 19730 1 440 000 000 440 n0 00 000 000 0.0 180 19000 20000 2 3000 e.00 eon 3000 00 00 000 000 00 3 6000 300 16000 5999 . 4 27 1n0 180.n0 -20 20000 21000 3500 600 1 7494 -t0d 67 200 000 -5.1 5 109+5 1364 18000 1 9 0 -52 215 300 000 -193 21000 22000 8 16921 2395 16000 1650650.0 -2670 92.2 . 0 00 -733 3 2477.5 45 00 180.00 2305.8 -3820 16 3. 000 50 0.00 95 22000 23000 a 24775 4s no +eo no z3ns a -6920 180.0 350 32 . 06 99.1 Travelling Cylinder Azimuth (TFO +AZ1) (bearing( vs Centre to Centre Separation 150 ft /in( 9 39350 7305 21499 29091 -15627 -1714 3.50 57.61 309.9 10 10756 9 73.05 214 99 4985.0 -7164 0 -4078.0 010 0.00 4691.8 PNt4 vq CInv9 11 109114 7305 214 99 5030.0 -72851 4162 7 0.00 000 4786.8 12 13911.4 73 05 313.99 5904.5 - 7527.6 3676.9 3.16 90 00 73129 13 139715 73.05 315.97 59220 - 74076 9717.5 3.16 90.27 7349 14 147112 73.05 31597 61378 -69783 .72 .3 000 0.00 77940 15147784 75.00 318.18 6155.5 9033.1 - 7252.8 3.00 587 7X340 PNt4 vtt Tt REFERENCE INFORMATION Well Planning - Pioneer - Oooguruk 18 ,51451 6608 316+6 62,61 - 6671.1 -755.3 300 0.11 81181.5 17 156099 89.06 316.+6 62480 -6330] -78255 0.00 000 03520 18 15741.3 9000 318.35 62525 - 6241.9 - 7918.2 300 2.82 81341 8114 411 02 oordinate N/E Reference: Well ODSN -43 - Slot 005 -43, True North ,9 16562.6 97.40 315.0 8234.7 -60540 -80976 300 -6.40 6594 C ( ) Calculation Method: Minimum Curvature 20 164494 97.80 31547 61667 -67109 -64357 0.00 0.00 89049 Vertical (ND) Reference: 44' + 13.5' @ 57.5ft (Nabors 19AC) 21 18801.8 90.00 320.87 61475 -5094 -86435 300 146.14 991 4.0,4 v,t T3 Section Reference: Slot - ODS-43 0.65, 0.0E Error System: ISCWSA 22 1695,4 8552 32104 8+534 - 5363.3 -8739.0 39 1 5.27 9173 N 5 ) ( ) Scan Method: Tray. Cylinder North 23 17812.8 8552 321 O4 62050 -4850.5 -91526 0.00 0.00 95434 Measured Depth Reference: 44' + 13.T @ 57.5ft (Nabors 19AC) y 24 1654.1 90 00 3,74s 6rzs -4705 .e -9277.3 355 -36.0 9655.0 RJ1.4n T. E Calculation Method: Minimum Curvature Error Surface: Elliptical Coni 48 18072.9 5014 98 984 30815 6193.7 a 8 0. 3 - 9742 1 1 0 00 00 00 193728 Warning Method: Rules Based 27 180029 9000 31416 8112.5 - 39749 -9948.5 3.00 -15346 102592 551441113 • 28 19001.2 8405 314.28 6122.8 - 38365 - 100903 3.00 178.85 103884 29 19821.5 8405 314.28 61876 - 3405.8 - 105320 000 0.00 10790.6 30 19823.1 9.00 31318 8197.5 - 3266.7 - 10877.4 300 -1043 199232 04114 411 78 31 19987.6 9492 31280 6190.4 - 3154.7.10797.6 300 4.46 11033.+ NAD 27 ASP Zone 4 : WELL DETAILS: ODSN -43 32 26620.7 9492 31260 81361 -27261 .+12604 000 0.00 114564 33 200210 9000 31630 8127.5 - 25952 - 114036 300 14453 115866 8,,14 vit T7 34 209132 8726 316.30 61297 - 25192 - 11468.7 300 18000 116437 Ground Level: 13.5 3s 2+763 6726 316.30 6170.5 -19025 "120560 000 0.00 121780 • 36 21830.1 89.15 31630 8172.5 - 1857.+ - 12099.5 300 -0.01 122159 PN14 411 78 +NI -S +E / -W Northing Easting Latittude Longitude Slot 37 226376 6915 316.30 91875 "11268 - 12795.5 060 600 126452 05,4411 79 0.0 0.0 6031015.46 469831.70 70° 29' 44.902 N 150° 14' 48.061 W ODS-43 • HYDRA 11" 5k PSI .. 1 CK ANNULAR BOP • • • • r– 11 • SCREWED HEAD F LANG D B 17 :Q M C NN. ECTION • • • i 1 1 4' - 7' FLANGED HYDRIL IP- DOUBLE GATE PREVENTOR • 13* -10k 3 I/8" 5000/ NCR VALVE - 1 -' - - -- 55 " LE NGTH • Lis • 1...1 . i 3 1/8" 5000/ NCR VALVE CHOKE L NE_ 1 i __ 1 i 1 -9�' 3' - --- I NIM - N �� w• '•i11 or S � -711 2 KILL LINE I 3 1/8" 5000/ GATE VALVE • 1 1 : 3" 5000/ GATE VALVE 0 • 1 HYDRIL 11' 5k PSI • . 3 ' - 4 • - -- —' --- -- - --- — • - 7". HYDRAULIC RAM SINGLE GATE • I FLANGED C • j , 41 3/4 LENGTH • • • i • • • NABORS ALASKA RIG 19AC . ' BOP STACK CONFIGURATION • • • • • j - IE. X76 ^AM PC ILI !! Iw.-041 nlYCRlq _ PAC71 CIAIRLMIMn • An A 0 Aj� we ~I �'�MMPR 4 NQ !X 4.34111 owl AQA WI • NA wa 4,... wawa x • 1 • • • • f • _— a1 -VItl . • � ry 1 I ...._—_. , 1. Num aarAl wawa M p 1. was Mew 1 i ail � .._..� 0 , ... r I • I� Ir o1aml. S`I 0 ill 1111 sir rw+as IS s NW w11 S APViiit 11,21......11 MX& I 11,...... ■ - M µel am t u, . . 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Gig IE9 RIR IE MEN NM r wail Now ,7rri JET 1 W A 1 9 t C 1 1 r 1 ` r 1 0 I H Installing of RCD Flow Diverter Body: • Lift and place RFD body onto top flange of RIG BOP stack using safest method available to ensure Body & fittings are not damaged. • Nipple up any adapter spools, studded adapters • Install all required valves and flow line components as required. • Install equalization lines as required. • Check alignment of the BOP stack to ensure the stack is in alignment with the Halliburton RFD. • Pressure test BOP to oil company policy. Installation of Bearing Assembly: • Run pipe into hole two stands off bottom or to company program. • Install stabbing mandrel to bottom of stand, Grease stabber, and stab through bearing. • Lower stand with bearing assembly and through the rotary table. • Lower drill string until bearing assembly is seated properly in the RFD body. • Install oil supply lines • Start up HPU and start drilling. Change RCD Bearing Assembly Procedure 02/09/2008 • Good communication between the RCD Operator and the drill floor is CRITICAL. Clear instructions must be relayed between the RCD Operator (working on the RCD beneath the drill floor) and the Driller, MPD Supervisor and air hoist operator. • In preparation for changing out a bearing seal assembly, ensure the 6 ft lifting slings, stabbing stand and starting mandrel are all on the drill floor • The RCD 5000 is a passive head, meaning it closes solely on well bore pressure. • It is rated for 3500psi at 5ORPM in a dynamic state and 5000psi in static mode. • To change out the RCD Bearing Assembly the stack should be in a clean and safe working condition with a STURDY WORK PLATFORM from which to work off. NOTE: If the bearing assembly is pulled, but not being changed out, and the forward plan is to re -run it, it must always be positioned at the bottom of a stand for racking back, or removed completely. 1. Position the element in the centre of the top single, and stop rotating. 2. Stop injection. 3. Close the Annular. 4. Bleed off standpipe pressure as per Connection Procedure. 5. Monitor wellhead pressure. 6. Bleed off pressure between annular and rotating head through MPD choke. Bleed off remaining pressure through to Rig shakers. 7. Open bleed valve on rotating head body, to confirm there is no trapped pressure. CONFIRM 0 PSI WITH MPD SUPERVISOR Note: Do not unlatch bearing assembly without checking for trapped pressure. 8. Stop cooling system, and remove circulating and pressure lines on the rotating head assembly. 9. Open clamp on rotating head body. 10. Remove the rotary table split bushing. Note: NEVER Connect lanyard to ANY portion of the RCD Note: NEVER put your body between the RCD and the rotating table 11. Install 6 ft lifting sling on rotating head assembly lifting eyes. 12. Slowly lift drill pipe, tagged line and seal bearing assembly approximately 3 ft above table. Move bearing assembly directly below top tool joint. 13. Reinstall rotary table split bushing. 14. Set drill pipe slips. Remove elevators. 15. Install 18 ft lifting slings thru the bell eyes, hook slings on the rotating head assembly lifting eyes and remove rotating head assembly. 16. Screw top drive into the pipe. Strip out single thru the Annular. 17. Break connection on the first single. Screw starting mandrel on the single. 18. Position bearing assembly into 3 ft by 16" stabbing casing on rotary table next to stump. 19. Lubricate the starting mandrel and inside of rubber, then push the single through the rubber until the mandrel is completely through the rubber. . all Change RCD Bearing Assembly Procedure 02/09/2008 20. Remove starting mandrel to make up top drive and single to drill string. 21. Pull out of the slips and remove split table bushing to allow the rotating head assembly to pass through the rotary table. BE CAREFUL TO NOT DAMAGE HYDRAULIC CONNECTIONS. 22. Lower the drill string down stopping to position the anti - rotation block RCD clamp. (If this is not in the correct position the clamp can't be closed properly). 23. Finish lowering the rotating head assembly in to the bowl and close clamp. 24. Connect lubricating lines to the rotating head. 25. Restart HCU and confirm differential pressure is 150- 200psi higher than well bore pressure.. 26. Pressure up to below BOP pressure, slowly with the cement pump below the RCD via the primary MPD line. Note: Ensure pressures are equalized on the pressure gauges and they don't exceed rotating head limitations (5000 psi). 27. Inflow test the RCD element, seals and housing. 28. Open the annular. 29. Continue with MPD operations. • it i Well Control Decision Tree ENDICATIONS OF AN UNSTABLE :'JELL:. • INCREASED cr REDUCED MUD FLOW • PIT GAIN or LOSS • CIRCULATING PRESSURE DROP • GAS or WATER CUT MUD i LOSS GAIN NORMAL Losses dcrnnt'ole Gain <10bbls, OPERATIONS above normal trends Gas <15% Normal = +r_ lbtildir`i • a Close BOP YES -HAND OVER • Open Rig Choke HCR and • Space out tool joint TO NABORS line up to dosed Rig Choke • Shut down the mud pumps according to MPD • Observe BBOP fort 0 min procedure & capture friction pressure, utilising MPD choke • Observe RCD Pressure for 10 mins Evaluate Kill Method I I 1 > r . . above Or 1 Off bottom T autochoke b press - . Losses ON BOTTOM Aoce table NO f p Adjust choke back pressure to SICP NO • Flow check well Circulate out • Lower WHP to previous Circulate out YEg—p, keeping constant' • FkYw Check Kick? (Drillers method) Have there been losses? YES • Resume circulation OFF BOTTOM • Circulate bottoms up - closety monitor flow rate pit volumes & gas levels NO C:ontin i • Be prepared to Shut -in on any other Proceed to operations Ref. indications of influx Bullhead Lost Circulation YES decision tree Monitor & adjust system i—YES Well Stable? as required to investigate; Evaluate regain stability transferring from Continue Well control to monitoring well MPD NO v stable? * i • Strip to bottom & Evaluate. • Drilling ahead ► Continue drilling ahead • YES circulate out Kick Back Evaluate further • • Bullhead at off Bach5ure procedures Pres bottom position • Mud Weight HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History The following case histories summarise the Underbalanced & Managed Pressure Drilling Projects Performed by Halliburton GBA. In the table below the UBD and MPD projects are summarized which are described in further detail in the following pages. We have worked in 14 countries drilling 234 wells to date. Total incidents over the past 10 years have been limited to 10 reportable. There have been 3 mechanical incidents involving RCD element leak/failure, 6 minor injuries (3 finger, 1 head, 1 knee, 1 rib) all none recordable, and one environmental spill that was contained. Note that none of these incidence resulted in lost time, hindered operations or had environmental impact. We attribute this low incidence rate to HMS /HSE policies /practices and competence of our personnel. • Country f Company (. Field F.: Number of Wells to dot€ Start [End F LED/MPD F ONOfshortF fm or CTD r Ongoing? F India Reliance Industries Ltd NEC 1 1- Oct -07 1- Dec -07 UBD & MPD Offshore Rig ongoing USA American Oil and Gas Powder River Basin 3 _ 1- Apr -07 1- Feb -08 UBD Onshore Rig End Indonesia EMP Sepanjang Island 2 10- Nov -04 30- Nov -04 UBD Onshore rig End Mexico Pemex (ride, Samaria, Cunduacan, Juj 77 1- Jun -04 1- Aug -08 MPD Onshore Rig ongoing Mexico Pemex (ride, Samaria, Cunduacan, Juj 12 1- May -06 1- Aug -08 MPD Onshore Rig ongoing Mexico Pemex (ride, Samaria, Cunduacan, Juj 34 1- May -06 1- Aug -08 MPD Onshore Rig ongoing Mexico Pemex (ride, Samaria, Cunduacan, Juj 3 _ 1- May -06 1- Aug -08 MPD Onshore Rig ongoing Thialand Hess Phu Horm 6 _ 1- Mar -03 1- Dec -07 UBD Onshore Rig End Austrailia Santos Strezelecki, Marabooka, Della, r 4 1- Sep -04 1- Dec -04 UBD Onshore CTD End Algeria Sonatrach 10 1- Mar -03 1- Mar -06 UBD Onshore Rig End Saudi Arabia Aramco Khurais 1 1- Nov -06 1- Aug -08 UBD Onshore CTD ongoing UAE Margham Margham 5 _ 1- Apr -06 1- Aug -07 UBD Onshore CTD ongoing UAE BP Sajaa 40 1- Mar -03 1- Mar -06 UBD Onshore CTD End Norway Statoil Gulfaks 3 18- Apr -05 19- May -05 MPD Offshore Rig End Norway Hydro Grane _ 4 7- Jan -08 1- Aug -08 MPD Offshore Rig ongoing Norway Statoil Gulfaks 1 6- Dec -06 8- Aug -08 MPD Offshore Rig ongoing - Brunei Shell Rasau 3 1- Jul -02 1- Jan -03 UB D Onshore Rig End Indonesia ExxonMobile Arun 8 1- Aug -02 1- Sep -03 UBD Onshore Rig End Indonesia Kufpec Seram 2 1- Mar -02 1- Aug -02 UBD Onshore Rig End Malaysia Shell 1 1- Oct -01 1- Feb -02 UBD Offshore Rig End Malaysia Shell StJoseph 2 _ 1- Feb -02 1- Aug -02 UBD Offshore Rig End Austrailia Santos Barrolka 3 1- Aug -00 1- Feb -01 UBD Onshore Rig End Portugal Mohave Aljubarrota 1 1- Mar -00 1- May -00 UBD Onshore Rig End Colombia GHK Tres Pesos 1 1- Dec -98 30- Dec -98 UBD Onshore Rig End Indonesia Kufpec Oseil 2 1- May -98 1- Oct -98 UBD Onshore Rig End USA Bryan Woodbine Oil Co Woodbine sand 5 1- May -97 1- Aug -97 UBD Onshore Rig End Wells - Totals 234 Page 1 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Reliance Industries Ltd No. of Wells: 1 Fields: NEC completed, ongoing UBD and MPD wells Address: Offshore Eastern India • Solution: HES MPD System to drill stacked sand HPHT well Range of Services: Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite MPD Supervision, MPD Autochoke system, Surface Separation, Data Acquisition with INSITE, . Contact: Ramdass Karavadi Telephone: email: Ramdass.karavadi @r il.com Start Date: Oct 2007 End Date: Ongoing Narrative: NEC -25 -B3 well was drilled utilizing MPD techniques with choke control. Drilling operations where very successful by enabling operator to drill deeper without setting additional casing string. RIL will continue to use this technology on all their wells where similar drilling problems are encountered. Page 2 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: American Oil and Gas No. of Wells: 3 Fields: Powder River Basin Address: Wyoming, USA Solution: HES UBD System to drill fractured sandstone, with high pressure fractures Range of Services: Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite UBD • Supervision, UBD choke system, Surface Separation, Data Acquisition with INSITE, . Contact: Aaron Miller Telephone: email: Aaron.miller @Hallibu rton.com Start Date: April 2006 End Date: February 2008 Narrative: Three wells drilled utilizing MPD techniques to drill pilot hole and then utilized UBD for drilling lateral in reservoir section RTRE was utilized to determine location of fractures. Gas and condensate were sold on last 2 wells during drilling operation. Incidents RCD element failure, gas vented, but was quickly contained utilizing the annular's within first few seconds of problem, no spills or environmental issues. • Page 3 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Energi Mega Persada Kangean Ltd No. of Wells: 2 Fields: Sepanjang Island Address: Onshore Sepanjang Island, one of Kangean Islands, North of Bali, Indonesia Solution: HES UBD System used to Solve Drilling Problems and Formation Damage in Fractured Carbonate Reservoir Range of Feasibility Study, Candidate Selection, UBD Engineering and FEED, Project Management, HSE, Onsite UBD Supervision, Surface Separation, Data Services: Acquisition with INSITE, Tank Farm with Steam Heating, Drilling Fluids, Completion Equipment, Cement Unit, Bits, Sperry BHA and MWD. Contact: Ross Prasser, EMP Telephone: Jakarta Office +62 21 2550 email: Ross.prasser@energi- 4880 mp.com • Start Date: February 2006 End Date: December 2006 Narrative: A previous well drilled overbalanced (in 1990) in this slightly over pressured (8.7 ppg EMW) fractured carbonate reservoir had experienced lost circulation problems, resulting in reservoir damage and NPT. The project was particularly challenging as the reservoir produces oil with a Pour Point of 115 deg F. The wells are low GOR at 110 scf /bbl, and Water Cut at 0 %. The wells were drilled underbalanced using flow drilling techniques. The drilling fluid used was initially diesel, which became diluted with native crude oil as the reservoir produced during UBD. The diesel was pre- heated and the crude oil was kept hot, and above its Pour Point, using steam coils in an enclosed oil tank farm. The steam coils were heated using steam generators. Oil produced during UBD was exported into pre installed production facilities and an insulated pipe line. Crude oil had to be heated prior to exporting. The production facilities and 5 km pipe line were preheated using water and a direct fired heater, prior to oil exporting. The oil was then exported down the pipe line to an FSO offshore. Oil pumped down hole had to be cooled using a mud cooler, so as not to damage the rig pumps or Kelly hoses. Pre heated diesel was used to flush all lines and the pipe line after oil flow down any line had ceased. • Solids were centrifuged out of the enclosed tank farm, then treated in a lined pit on the island. The wells have an IADC classification of 4B5. The project was a commercial and operational success. Reservoir damage was eliminated, resulting in significant oil production rate improvement. The reservoir produced crude oil with a PI of over 1000 bbl /day /psi during UBD, and after the wells were put on production. Lost circulation and slow ROP problems were solved, meaning the reservoir sections were drilled faster. All produced oil was successfully exported to the FSO offshore during UBD operations. The wells were successfully completed underbalanced. Page 4 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Halliburton IS Pemex Bermudez & Jujo Projects No. of Wells: 126 Fields: (ride, Samaria, Cunduacan, Jujo, & ongoing Tecominoacan Address: Onshore Southern Mexico Solution: HES UBA System (Low Head) to solve Drilling Problems in Under - pressured Fractured Carbonate Reservoirs Range of Services: Recyclable foam products & testing, Surface separation, MPD Engineering, Project Management support, MPD • Supervision, Rotating Flow Diverter, Mist pump, Membrane Nitrogen, Cryogenic Nitrogen, Corrosion Control & Monitoring, DAS & real -time data transmission with INSITE, Completion Products, Cementing, MWD /DD. Contact: Avram Lopez Telephone: (52) 9173282100 email: Avram.lopez @hallibu rton.com Start Date IS Turn Key Project: June 2004 End Date: May 2006 Start Date: Discrete Contract May 2006 End Date: Ongoing, 2010 Narrative: Halliburton IS turn key drilling project responsible for large scope of work from spud to completion. 4 Separation (LRT) packages operated in the reservoir section of the 33 wells which were drilled by 7 drilling rigs, in the initial project. MPD services utilized in the pay zone section of the wells to provide a low density, LCM -free, near - balanced fluid system ranging from 2.9 to 7.0 ppg ECD. Fluid systems that were used were a recyclable foam in the 2.9 to 4.5 ppg range and two -phase (nitrogen and drilling fluid without a foaming surfactant) in the 4.5 to 7.0 ppg range. Well depths range from 11,000 to 20,000 ft in the pay zone. High Temperature Recyclable Foam drilling fluid system was a designed & tested specifically for this application in Reforma Mexico & the Duncan Technology Centre. Initially the project started with cryogenic nitrogen which was later phased out by membrane nitrogen injection equipment which lowered costs and provided a more reliable supply of nitrogen. Halliburton now has 4 membrane Nitrogen packages working with the LRT separation packages. Drilling time in the pay zone was reduced by an average of 50% compared to previous wells. Page 5 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Halliburton Discrete Contract drilling project responsible for large scope of work from spud to completion. 4 Separation (LRT) packages operated in the reservoir section of the 44 wells drilled with full Sigma Service (Separator, Choke system, Nitrogen in lower pressure reservoirs, RCD), 12 wells drilled for kick control, 34 wells drilled with RCD and 3 wells with N2 only.. The project is now ongoing and further wells are being drilled using MPD technologies. MPD services utilized in the intermediate and pay zone section of the wells to provide a low density, LCM -free, near - balanced fluid system ranging from low pressures to very high ECD's (2.9 to 8.0 ppg ECD in the low pressure reservoirs and (8 to 18ppg in the high pressure formations) . Fluid systems that were used were a recyclable foam in the 2.9 to 4.5 ppg range and two -phase (nitrogen and drilling fluid without a foaming surfactant) in the 4.5 to 7.0 ppg range and single • phase WBM and OBM in the higher pressured formations. Well depths range from 11,000 to 20,000 ft. Incidents: Two RCD incidents due to leak no spill and incident was contained. One environmental incident shown below. . LOC ACI Incident Type # INC Date PSL/SS ON DESCRIPCION Environmental 4633 5- Dec -06 SDS Sam While breaking circulation at casing shoe in Samaria 1081, pumping 300 GPM Recordable 73 (UBA) aria of oil base mud and 25 m3 of N2. Sample Catcher's PSV relieved at 60 psi 1081 (it is set at 250 psi), diverting mud to the flare stack, and dumped an estimated of 3.77bbls to the ground. Immediately shut down rig pumps and bypass N2, closing chokes. All operations were stopped to contain the spill, no environmental impact Drilling time in the pay zone was reduced by an average of 50% compared to previous wells. Page 6 of 37 • HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: HESS Thailand Limited No. of Wells: 6 Well: Phu Horm 3 drilled in 2003; Appraisal wells Phu Horm 4 & 5 drilled in 2004; Wells PH6, 7 & 10 drilled in 2007 Address: Onshore NE Thailand Solution: HES UBA Range of Services: Front End Engineering and Design, UBD Engineering, UBD Project Management, Onsite UBD Supervision, Separation g 9 9 9 9 9, 1 9 P System (HRT), Data management (lnsite), Nitrogen services, Condensate Tank Farm, Completion Equipment, Reservoir Evaluation, Real Time Data Transmition Contact: Andy Timms Telephone: (66) 2636 1936 Fax: Start Date: March 2003 End Date: Dec 2007 Narrative: HESS drilled conventionally into a marginally over - pressured fractured carbonate reservoir and encountered well control problems while trying to drill the reservoir section. The Phu Horm 3 well was killed and secured until a solution could be found. Halliburton assisted with a design to drill the reservoir section utilizing UBD techniques to control the well while drilling and to eliminate any potential damage to reservoir. After substantial upfront engineering and preparation, the well was safely drilled without any well control problems and resulted in flow rates far exceeding expectations. Subsequent post - completion extended flow tests confirmed a large reserve base with this accumulation. Successful operational and production outcome. Appraisal wells Phu Horm 4 & 5 were successfully drilled utilizing UBA techniques. Real Time Reservoir Evaluation (RTRE) was performed on both wells with outstanding results from the application. The RTRE has allowed for early • evaluation on the well before well was TD. This allowed for early project sanctioning by HESS and decreased time line for decision making. Phu Horm 5 produced 40 MMscf /day gas during UB drilling at minimal drawdown. Phu Horm 4 produced 65 -70 MMscf /day during UB drilling at minimal drawdown (has proved to be the largest sustained gas rates in the world to -date for this type of operation). PH 6 and 7 where dry holes, PH 10 was drilled conventionally and was deemed to be damaged and produces 10 mmscfd. Page 7 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History of Wells: 4 Fields: Strezelecki, Marabooka, Santos, Adelaide Australia No. o , Della and Moomba. Address: Cooper Basin, South Australia by remediation of Solution: Integrated UBD and CTD delivery to reduce unit production cost in depleted tight oil and gas fields y 9 rY P wellbore damage and increasing permeability by exposing new formation. Identify new opportunities in low quality • reservoirs Range of Services: Project Management, Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, Cryogenic Nitrogen, Twin Panther Pumps, 80k Coil Tubing Rig with 2 -3/8" coil and tower, LRT Surface Separation, INSITE /Scan3 Data Acquisition. Contact: Rick Doll / Kevin Welsh Telephone: email: Start Date: September 2004 End Date: December 2004 Narrative: Four wells increasing in complexity to implement CTD UBD technology in a step wise approach. Strezelecki 14 (gas) underbalanced deepening in low pressure well, production came in above expectation. Marabooka 8 (gas) underbalanced lateral into undamaged formation, exceeded expectations. Della 24 (gas) low angle side track into un damaged reservoir, field record producer Moomba 117 (oil) dual lateral sidetrack into un damaged reservoir, dual casing exit and flow drilled with crude. • Page 8 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Customer: Sonatrach (ENTP) No. of Wells: 8 wells plus — MD 352, MD 199, MD 418, MD 10 430, OMM 731, MD 322 & OMO 13 completed. Address: Hassi - Messaoud, Algeria • Solution: HES UBA Range of Services: Contractor for Underbalanced Drilling Services providing short radius directional re -entry sidetracks for increased productivity in existing production wells. Hatliburton provided services includes Upfront Engineering and Job Design, Project Management, kick -off and directional sidetrack drilling, MWD and Underbalanced Site Supervision and Engineers, Surface Separation Package, Rotating Control Head, Insite / SCAN 3 data acquisition, Safety System, Nitrogen Delivery, Solids Treatment and Site Storage and Transfer of Produced oil (Tank Farm and Export Pump). Contact: Mohamed YAHMI Telephone: 213 29 73 88 50 Fax: 213 29 73 80 88 Start Date: Commenced; March 2003 End Date: 2006 Narrative: Successfully completed 7 wells of a 10 well programme, with two wells providing record productivity for their areas. No safety or operational incidents. • Page 9 of 37 i HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Saudi Aramco, Saudi Arabia No. of Wells: Wells: Khurais Field 1, ongoing Address: Onshore Saudi Arabia Solution: HES UBD, Schlumberger Coil tubing and cryogenic N2, Baker Inteq BHA • Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD Separation System, Choke System, High pressure separation system Contact: Alain Belainger Telephone: Fax: Start Date: 11/2006 End Date: Ongoing 2009 Narrative: Aramco wished to emulate BP and Margham UBD operations conducted with coiled tubing in depleted carbonate gas reservoir. A gas conservation /compression system and high pressure separator allows the produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels; and also to address and conform to flaring restrictions. Condensate was also processed and re- injected back into the production header maintaining 100% recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns were separated, processed and checked for conformity before disposal. In the first well a four fold increase in production was seen compared with previous conventionally drilled and stimulated wells. • Page 10 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Margham Dubai Establishment (MDE) # of Wells to Wells: GAS RE ENTRY PROGRAM — date: 5 Margham Field Address: Onshore - Dubai, United Arab Emirates Solution: HES UBA Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD • Separation System Contact: John Capps Telephone: Fax: Start Date: April 2006 End Date: 8/2007 Narrative: MDE were interested in utilizing the same multilateral re entry approach that had proved so successful for BP Sharjah because there were many similarities and challenges with their gas field. The driver for this campaign revolved around the need to increase gas production from the MDE field to cope with Dubai's ever increasing development / expansion. Dubai's electrical power was being generated via the burning of liquid fuel at approximately 6 times the cost of natural gas. The initial goal was to add 60 MMSCFD to the field's current production with 5 re —entry wells. This goal was significantly surpassed by the first three wells (approx. 75 MMSCFD). This success has led to the recognition of this technology as being an efficient and cost effective method of increasing production without a large capital investment. Phase 1 (5 wells) were completed in Q4 -2006. Phase 2 (5 wells) are being drilled in 2007, and Phase 3 (3 -5 wells) is being evaluated and considered in conjunction with a work over campaign for some of the older wells in the field. This project is a 2 phase (N2 & water) coiled tubing underbalanced multi lateral drilling campaign in a depleted limestone gas • reservoir. A gas conservation /compression system has enabled produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels. Condensate has been processed and re- injected back into the production header maintaining a high percentage of recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns are processed in the vertical two stage 4 phase separation unit and checked for conformity before disposal. There have been no lost time incidents since the beginning of this project. Page 11 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: BP Amoco Sharjah No. of Wells: Wells: Sajaa Field 40 Address: Sharjah, Onshore United Arab Emirates Solution: HES UBA • Range of Services: Front End Engineering and Design, UBD Engineering, Onsite UBD Supervision, INSITE /Scan3 Data Acquisition, UBD Separation System Contact: Randy Pruitt Telephone: Fax: Start Date: March 2003 End Date: March 2006 Narrative: BP conducted coiled tubing underbalanced drilling campaign in this depleted carbonate gas reservoir. A gas conservation /compression system enabled produced gas to be processed, recompressed and exported back into the sales line making a significant contribution to maintaining and optimising daily production levels; and also to address and conform to flaring restrictions. Condensate was also processed and re- injected back into the production header maintaining 100% recovery and further enhancing the economic viability of the project. Produced formation and drilling fluid /solid returns were separated, processed and checked for conformity before disposal. Over 340,000 feet were drilled in 163 laterals in 40 wells. Average initial increases in production were @ 3 -fold. The project achieved >1.2 million man -hours without a DAFWC. Over 5 BCF of gas was compressed to the plant while drilling! BP discontinued the project 1Q06 to re- evaluate the reservoir drainage patterns. Drilling is expected to re- commence in • 2007. Page 12 of 37 • HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Statoil - Gullfaks No. of Wells: C -05A, CO9A and C47 Address: Offshore, Norway Solution: HES UBA • Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, Offshore UBA Supervision and UBA Drilling Engineering, Surface Separation Package, INSITE / SCAN 3 data acquisition and PLC safety system monitoring downstream UB parameters. Contact: Tim Twnnessen Telephone: (47) 51837638 Fax: (47) 51838383 Start Date: Commenced; November 2003 End Date: 2007 Renewed MPD contract started 2007 Narrative: In recent years, increasing difficulty in drilling the Shetland cap rock has prompted Statoil to investigate the use of alternative drilling methods. Over - pressure in the Shetland cap rock has been created by local water injection opening microfractures allowing charging of carbonate stringers that run through the cap rock. The resulting overpressure can run very close to formation fracture pressure. Increasing mud weight to the density required to control the overpressure will result in ECD exceeding formation fracture pressure. If mud density is reduced so that ECD is below fracture pressure, then static fluid density will be below pore pressure and a kick situation can reoccur. An Underbalanced system allows the section to be drilled with a fluid density that is intentionally designed to be below pore pressure allowing the well to flow if abnormally high formation pressure is encountered. • C -05A: UBA of side -track using clear 1.55 sg KCOOH brine • C -09A: MPD of 8 -1/2 "section in the cap rock and 6" section in the reservoir. Using 1.55 sg clear brine, a solids- • weighted water -based fluid and a 1.45 sg solids - weighted oil -based drilling fluid. • C47: MPD in 12 -1/4" section in the cap rock using 1.55 sg solids- weighted oil -based mud. Page 13 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Hydro - Grane No. of Wells: G -2, G -1, G -39, G -16 Address: Offshore, Norway Solution: HES UBA Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, Offshore UBA Supervision and UBA Drilling Engineering, data acquisition and RCD services. • Contact: Tim Tr nnessen Telephone: (47) 51837638 Fax: (47) 51838383 Start Date: Commenced; 2007 End Date: TBD Ongoing Narrative: • In recent years, increasing difficulty in completing the wells on Grane to the planned TD due to instable shale stringers and lost circulation issues led Hydro to investigate further solutions on how to optimize bottom hole conditions. MPD presented by Halliburton was found to be the most viable solution and the summer of 2007 the first well was drilled keeping open over 150m of shale and still being able to complete the reservoir section successfully. Third party RCD services problems occurring delayed project progress until summer of 2008 when a new RCD solution utilizing a passive head operated by HES was introduced on well G -16. The use of MPD to increase length of horizontal reservoir laterals together with Halliburton MLT solutions is expected to greatly increase production from this field. • Page 14 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: StatoilHydro — Gullfaks (Renewed contract) No. of Wells: C -01 Address: Offshore, Norway Solution: HES Geobalance automated MPD Range of Services: Halliburton services include Upfront Engineering and Job Design, Project Management, design and delivery of purpose build equipment, Offshore Supervision and Drilling Engineering. • Contact: Tim Tonnessen Telephone: (47) 51837638 Fax: (47) 51838383 Start Date: Commenced; December 2006 End Date: Dec 2010 + 2 Advanced automated MPD years equipment Narrative: • In recent years, increasing difficulty in drilling the Shetland cap rock has led StatoilHydro to utilize UBD /MPD services from Halliburton to gain access to certain reservoirs as described above. The need for full underbalanced services was not present as the produced fluid was primarily water and reservoir production and permability is so high that keeping a slight overbalance while drilling the formations was adequate to achieve all the customer objectives. • Currently new advanced automated control MPD equipment will be implemented on the C -01 well in November 2008. • Page 15 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Brunei Shell Petroleum No. of Wells: 3 Wells Rasau 34, 39 & 40 Address: Seria, Onshore Brunei Solution: HES UBA • Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 phase separation unit, Rotating Control Head, INSITE / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mud logging data for single source data base and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control, gas compression. Contact: Mike Ward Telephone: (67) 3 337 2785 Fax: Start Date: July 2002 End Date: January 2003 Narrative: A three -well underbalanced drilling trial was conducted in the Rasau shallow oil field, located onshore in Kuala Belait, Brunei (first ever UBD in Brunei). UBD was chosen to reduce or eliminate formation damage normally experienced using traditional drilling methods in this field (typical skins of +80 -100 on conventional wells). Native crude and field gas were chosen as the drilling fluids, thereby increasing the complexity of the operation as well as equipment requirements. The target reservoirs were shallow (circa 1800m) thin, stacked, inter - bedded sand /shale units. The program was to drill high - angle, sub - horizontal wells cutting through the many sand layers to maximize formation exposure. The stability of the inter - bedded shales caused significant problems due to "borehole breakout" and collapse (one well could not be drilled UBD). The 1 well in the campaign (where the reservoir pressure was highly depleted) and the 3` well (where up to 60% of the drilled section was shale) were expected to be at greater risk. • Production rates observed after drilling to TD and prior to running completions indicated zero formation impairment and higher than anticipated Pi's. Post completion well tests indicated productivity reductions of 60 to 70 %. These reductions were attributed to mechanical problems incurred during the completion and near wellbore impairment (hole collapse or screen plugging). The wells are now on production and are being evaluated for long -term benefits. The pilot project showed UBD potential; a regional borehole stability study was subsequently conducted to establish criteria and further candidates for UBD in this area. Page 16 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Exxon Mobil Indonesia No. of Wells: 8 C111— 16C, 5A, 16B, 17 CIV — 16, 2A, 22, 6A Address: Arun Field, Sumatra, Onshore Indonesia Solution: HES UBA • Range of Services: Halliburton services included Upfront Engineering and Job Design for surface separation systems and equipment which consisted of BRT 4 phase separation unit, Automatic Choke control, PLC chokes control, SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Performed single source data base and monitoring of all UBA data. Contact: Chuck Reibi Telephone: (62) 21 574 7070 Fax: Start Date: August 2002 End Date: September, 2003 Narrative: This formation in the Arun field is a highly productive and highly depleted (2ppg) carbonate gas reservoir. The main reason for drilling underbalanced was to increase production. Additionally, due to the depleted pressure it was not possible to drill conventionally with a full fluid column. Halliburton designed and built a high flow rate UBA process package to be able to flow the wells while drilling with minimal pressure drop through equipment; using core design criteria from existing UBA packages and changing to fit for purpose equipment. Gas production targets were met after drilling only 6 of the planned 10 wells (total of 8 were drilled). Production results were 46% higher than the expected UBD results. The wells were drilled in record time allowing for a substantial decrease in cost to drilling operations. No LTI's or first aid cases were recorded over the 1.57 year project. Non - Productive Time (NPT) during the UBD operations accounted for just 0.9% of total well time. Page 17 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Kufpec (Indonesia) Ltd No. of Wells: 2 Wells Oseil 2 and Lola Kecil 1 Address: Seram Island, Onshore Indonesia Solution: HES UBA Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 • phase separation unit, Shaffer Rotating Control Head (PCWD), Insite / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mud logging data for single source data base and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control. Contact: Simon Shaw (Drilling Telephone: (62) 21 766 2840 Fax: (62) 21 766 2845 Manager) Start Date: March 2002 End Date: August, 2002 Narrative: The Oseil field is an under - pressured, fractured carbonate oil reservoir. The crude contains high wax and H2S content and is prolific where macro fractures are encountered. Conventional wells were damaged and experienced massive fluid losses. Osiel 2 was side tracked with a 7" liner set in top of carbonate reservoir section. It was then drilled underbalanced utilizing native crude oil and Membrane generated N2. The well initially flow approx 1000 BOPD. After intersecting macro fractures in the reservoir, the well was completed after flowing 10,000 BOPD. Kufpec are planning an addition 15 UBD well program to increase their production to a meet market demand by late 2004. • Lola Kecil 1 (exploration well) - was drilled to 6000' dry and was P &A'd Page 18 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Sarawak Shell Berhad (SSB) No. of Wells: 1 E11 -SC2 Address: Sarawak, Offshore East Malaysia Solution: HES UBA Range of Services: Halliburton provided a wide scope of services for this integrated offshore underbalanced drilling program, including • Project Management, upfront engineering, planning, well design, Site Supervision and UBD Engineering, Advanced four - phase separation & Data acquisition system, Electronic PLC Based Surface Safety Shut -in System, Rotating Control Device, Cryogenic Nitrogen Injection, hydraulic workover (HWO) Snubbing and Security DBS's Near Bit Reamer (NBR). Sperry -Sun provided MWD /PWD /LWD and directional drilling services. Additionally, Halliburton supplied real -time data transmission to Shell's local office in Miri (via INSITE ANYWHERE) and ultimately provided Reservoir Analysis while drilling, using a proprietary analytical model developed specifically for this application. Halliburton's new downhole isolation valve called the "Quick Trip Valve" (QTV) was also run to facilitate the deployment of Expandable sand screens into the well without having to perform a well -kill. Contact: Jan Terwogt Telephone: (60) 85 453 972 Fax: Start Date: October 2001 End Date: February, 2002 Narrative: The E11 -SC2 Shallow Clastics Underbalanced drilling project included many industry firsts, such as; First offshore UBD well in Malaysia, First run of the QTV offshore and first UBD well using a tender assist Drilling Rig. The Shallow Clastics formation is a normally pressured gas reservoir with moderate permeability. The well was drilled underbalanced to maximise well production through impairment reduction. The well was drilled utilising a nitrified water • based drilling fluid. The well was evaluated to have resulted in 2.5 times increased production from the conventionally drilled well in the same formation. Further Field Development is being evaluated utilising UBD technology. * *This UBD well was designed, executed, and completed on a fast -track program in less time than any one previous Shell (Global) offshore UBA projects ** Page 19 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Sabah Shell Petroleum Company (SSPC) No. of Wells: 2 St Josephs H3 & H5 Address: Sabah, Offshore East Malaysia Solution: HES UBA Range of Services: Halliburton provided a wide scope of services for this integrated offshore underbalanced drilling program, including Project Management, upfront engineering, planning, well design, Site Supervision and UBD Engineering, Advanced four - phase separation & Data acquisition system, Electronic PLC Based Surface Safety Shut -in System, Rotating Control Device, Gas Compression, solids control and storage system, zone rated oil injection pumps and all control and interface systems to link all of the UBD equipment together. Sperry -Sun provided directional drilling services. Additionally, Halliburton supplied real -time data transmission to Shell's local office in Miri (via INSITE ANYWHERE) and ultimately provided Reservoir Analysis while drilling, using a proprietary analytical model developed specifically for this application. Contact: Jan Terwogt Telephone: (60) 85 453 972 Fax: Start Date: February, 2002 End Date: August, 2002 Narrative: These two wells were drilled and completed underbalanced from a small jackup rig. This was the first offshore application of crude oil and hydrocarbon gas injection as drilling fluid in jointed pipe operations conducted in the Asia Pacific region, and was successfully carried out without any HSE incidents. The St. Josephs "H" Sands are depleted sandstone / shale layered formations. Conventional drilling resulted in formation damage (average +5 in horizontal wells). Prior to the UBD campaign, a geomechanical study suggested a moderate to high risk of borehole instability would be expected while drilling underbalanced in these shallow sands. The 1st well was drilled partially overbalanced due to borehole stability concerns. No problems were experienced during • the drilling or completion operations in this well. Due to the mitigation of borehole stability risk, the second well was drilled fully underbalanced, and was evaluated to have 50% higher than expected production. Further Field Development is being evaluated utilising UBD technology. Page 20 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Santos Oil Pty. Ltd No. of Wells: 3 Wells: Barrolka 4, 5 and 7 Address: Barrolka Field; Cooper Basin, SW Queensland, Onshore Australia Solution: Lead UB Contractor • Range of Services: Halliburton services included Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, BRT 4 phase separation unit, Shaffer Rotating Control Head (PCWD), lnsite / SCAN 3 data acquisition and PLC safety system monitoring all downstream UB parameters. Imported third party downhole and mudlogging data for single source database and monitoring of all UBA data, crews and technicians, base oil supplement, tank farm and shaker equipment / solids control. Halliburton also provided reservoir evaluation of the underbalanced drilled section in Barrolka 5. Contact: Jim Carr Telephone: Fax: Start Date: August, 2000 End Date: February, 2001 Narrative: This three -well underbalanced drilling pilot program featured one vertical and two horizontal wells using base oil as the drilling fluid. The normally pressured sandstone gas reservoir was characterized by tight -gas sandstone and matrix permeability of 0 -1 md, and random higher permeability crevasse splay sand lenses throughout. The reservoir also had coal sections above and below. The plan was to drill horizontal wells underbalanced to maximize possibility of intersecting the higher permeability lenses while protecting the formation from near wellbore damage. Conventional wells were sub - economic. Four (4) air drilled vertical wells produced 1 -3 MMscfd but had experienced problems with downhole fires and wellbore stability. Barrolka 4 - The program for the first well was to drill a vertical pilot hole to determine the location of coal sections and • run logs to enhance the geo- mechanical model. A vertical sidetrack was then drilled underbalanced into the reservoir. This first well would also provide the opportunity to proof test the new underbalanced drilling 4 -phase surface - separation system and crews, provide training for the drilling crews, and observe the skin damaging effects of the base oil on the reservoir. At the same time, this would provide an opportunity to review whether there were significant added complications of drilling a directionally complex, high angle well. During the wireline logging operations on the pilot hole, the coal seam underlying the reservoir collapsed, making it impossible to run the logs over most of the reservoir. As planned, the well was cement plugged back, and then an 8 % -in. vertical sidetrack was drilled conventionally (sidetrack • Page 21 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History and main bore being separated laterally by 70 ft). A 7 -in. liner was then run and cemented, and the underbalanced section was then drilled out with a 6 -in. bit. The underbalanced hole section was successfully drilled from 8483' to 8567' thereby proving the mechanical integrity of the system and process. Unfortunately, no significant gas sections were encountered through this short, vertical section. Barrolka 5 — was the first horizontal flow - drilled well in the field. Due to coal instability and washouts, the 7 "casing could not be run to planned depth and was set high (i.e; above the main target). The well was then underbalance drilled horizontally into the upper secondary zone. Due to drilling motor failures and steering problems in the horizontal section, three open hole sidetracks were drilled. Ultimately, 1,517 feet of reservoir in the well was drilled underbalanced. • The new advanced four -phase UBD Separation system was able to successfully manage all returned fluids /solids while drilling this well, and was subjected to instantaneous rates of up to 50 MMscf /day gas and 25,000 BOPD during well surges at various stages of the operation. This well was also used as a test case for Halliburton's latest generation of a new UBD reservoir- modeling tool. The modeling indicated that contrary to general consensus the reservoir section did not appear to consist of relatively long lengths of net pay, but rather production was from a few point sources of high permeability along the length of the reservoir section. The well was completed as one of the field's only economic wells at 1.5 MMscfd. Barrolka 7 - This third well location was chosen in an area of the field considered to be less fractured and subject to lower stress variations. The main technical objective of this well was to drill a mechanically and operationally successful horizontal well. This was fully achieved, and ultimately, a total of 1706 feet was drilled underbalanced. The well did not encounter any commercial zones and produced only at marginal gas rates. The UBD project was considered an operational success, however due to geological uncertainty in the field, the program was discontinued. Santos are presently reviewing feasibility of performing a Coiled Tubing UBD pilot program in another field in 2004. • Page 22 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Mohave Oil and Gas No. of Wells: 1 Well — Aljubarrota 3 (exploration) Address: Aljubarrota Field; Alcobaca, Onshore Portugal • Solution: Integrated Solutions Range of Services: Halliburton services included Project Management, Upfront Engineering and Job Design, UBA Supervision and UBA Drilling Engineers, Sperry Sun Electromagnetic MWD, LWD, DWD and Mudlogging, Insite Command Unit and technicians, Tools and Testing sensor package on N2 injection equipment . Also responsible for co- ordinating third party services such as separation package, drilling fluids, nitrogen injection services, rotating heads, DBS Drill Bits and BHA Equipment. Contact: Mike Stern Telephone: (1) 713 975 1725 Fax: Start Date: March 2000 End Date: May 2000 Narrative: Vertical well, drilled in carbonate formations, Drilled well underbalanced from 17 '/" section. 17 '/" drilled with N2 foam @ 2 — 3 ppg until a water influx was taken at 135m, section completed with water. 12 ' / <" section drilled with N2 aerated water UB system @ 5 — 7 ppg, drilling near balance. 8 'A" section drilled with foam until water influx taken at 1075m, drilled to TD overbalanced with water. Well TD @ 2480m, no gas shows / production over entire well. Operational success. Page 23 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: GHK Company Columbia No. of Wells: 1 Well — Tres Pasos 1W Address: Guaduas Field Rio Seco Block; Onshore Columbia, S. America • Solution: Lead Contractor Range of Services: Halliburton services included directional drilling systems, MWD, LWD, Geosteering, cementing, testing and UBD project personnel. Also responsible for co- ordinating third party services for drilling fluids, air drilling services, drill bits and nitrogen services. Contact: Gary Wallen Telephone: (57)(1) 629 -1580 Fax: (57)(1) 629 -5637 Start Date: December 1998 End Date: December 1998 Narrative: After setting 9 -5/8" casing at 5958', installed 4500' of 7" casing (concentric string), drilled 9 -5/8" shoe with 6 -1/8" bit, tripped for UBD assembly and drilled a lateral with 8.5 ppg brine down the drill string and nitrogen injection in the micro - annulus. The lateral was drilled to 10,780' MD and 6,286' TVD. During the drilling operation, the well produced 5363 Bbls of 21 API gravity, sweet crude and a total of 12.9 MMCF of gas. A two -phase separator and oil- skimming system were utilized. Oil was transported by truck, and the gas was flared. Successful operational and production outcome. • Page 24 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Kufpec (Indonesia) Ltd No. of Wells: 2 Wells — Oseil 2 and 4 Address: Oseil Field Seram Island, Onshore Indonesia Solution: Integrated Solutions • Range of Services: Project Management and Lead Contractor for underbalanced services. This included supply of rotating control diverter, choke manifold, four -phase separation system, air compressors /nitrogen membrane units, enclosed H2S oil storage tanks, solids separation equipment and flare system. Contact: Ian P. Moyle Telephone: (62)(21) 766 -2840 Ext.15 Fax: (62)(21) 766 -2845 Start Date: Commenced UBD, Oseil 2; May, 1998 End Date: Completed UBD, Oseil 2; July 1998 Commenced UBD, Oseil 4; Sept, 1998 Completed UBD, Oseil 4; Oct, 1998 Narrative: The purpose for conducting UBD operations was to prove up reserves discovered on Oseil 1. Oseil 1 had been drilled overbalanced and experienced up to 30,000 Bbls of drilling fluid losses (under - pressured fractured carbonate zone). On Oseil 2 and 4, after drilling out of 9 -5/8" casing the wells were drilled and cored underbalanced in 8 -1/2" hole, starting with nitrified diesel and finishing with nitrified sour crude oil. The wells were then tested with considerably higher Pi's ranging between 200 -700 Bbls /psi (16 API gravity, sour crude). Successful operational and production outcome. Page 25 of 37 HALLIBURTON GeoBalance Applications: Underbalanced and Managed Pressure Drilling Job History Client: Bryan Woodbine Oil Corporation No. of Wells: 5 Wells 36 -H, 29 -H, 48 -H, 38 -H & 1 -H Address: Bryan Woodbine Unit; Brazos County, Onshore Texas, USA Solution: Integrated Solutions • Range of Services: Project Management; provided all services including rig to re -enter and plug -back existing wells, mill window, sidetrack with lateral(s) in Austin Chalk utilizing a flow - drilling technique and perform open hole completions. Halliburton was compensated from well production. Contact: Tony Dyson, President Telephone: (409) 776 -0121 Fax: (409) 776 -1312 Start Date: Commenced; May, 1997 End Date: Completed; August, 1997 Narrative: All five wells were non- producers in the Woodbine sand. Project required plugging back in 5 -1/2" casing and drilling a total of eight laterals. Three wells had up -dip and down -dip laterals, and two wells had one lateral only. KOP was at 8600' TVD and utilized a build rate of 30 degrees /100'. Laterals measured from 1900' to 3700'. During drilling operations, gas production of approximately 500 Mscf /day was being sold into an existing gas gathering line and oil was being recovered and transported by truck to the operator's tank battery. Initial production from all five wells was approximately 1400 BOPD of 37 API gravity, sweet crude. Successful operational and production outcome. Page 26 of 37 HALLIBURTON Underbalanced Drilling Performance Testimonials • a4goradeattik cm Inc:Inf....la J1 4.11(.1 F.A.41rn.7. Ja4uarta 1a210, t 62 21 5:4 4707 Tb.4c,i1o.r.o 52 21 574 DCC SepLernticr 17, M)) Arun 131z Bore Tram E75(onMobil ENO( xr.t.f LIV Dap `i:Jr. Service Coittputho J04 Supplier: Dear Team. On bdi1F E t.jbt Dil Etttorirsiit trse , ha shank you tor year ct.celclit porT I1i utuI utrd s the outstanding drilling perform...la:a i the Arun CLV-6A Big Hole Well that Ve1/5 itId en September 6, Outstaraltng ochieverntitts in iIu 401 are 1) • a ormance — rintrody tel Hurt" - rot en a single first aid occurred thrughium rhtt well" This clearly represents proactive a rt and vigilanda frum eserynne onsoe in working together 10 avoid ae.ts or w conditions that can lead to twideras and injuries r onapiiencin of CW-6A, the final well rn the 2002 03 Big Bore Campaign. Rig 41 had been eperming for 572 d2ys ( [..57 )ear) *thou t Lost rime Incident 1,11) and Ma is truly an impressive achtievenienr' 2 Prey. Pacesetting Records CfV-6A was drilled to a soul depth (MI of 10.577 ft and actrtpletbi rn 210 days or 2.2 dayt faider 01.1r. the previews record well Efticiera project settee. lulling testified In a rig misc. of 6.4 days or 0 7 diy ahead ...r1 belt performance. 5ptd-fl) 111114 1 :15 0_5 days (543 0..'day), beating the previous pacesetting rrd by 0 . day All critical operation: were canducted JUICer..sAt Jed the eV:rem clullenos included drtIlirt through, No Hill' And Stf!csilive Bann* shale e ii. urzing the 10" Rig Rae praductior. LtItt:III the Dri21 Lir= cn 1 single rum and linden' Balanced Drilling TD, Combired ',soh the eve-ii.wn or" of-mazed ',sell iSestri, this co,itit.soditatt perforrearv.. was aceorriplished through erational dEzirnry that annrinurnisly challerivd the vislun innelirr iii eNery phase of the well LOwe"11:• Nen-Prodis" eve Time pc:torn:me was cw,elient• The Nf'T ,si:omnied t.1 •rt. i") ,i1 of the rata! well writ. The natal trouble time was only 0.eq, which Is almost - not-edatert:' 'I h exc.:ma:mai performance could tut be acz.limplished without $ieraGrawri synergy fr 3II parties paying iene."rn all details in trotrIng Oat equipmemisysterri were working prriierly, and ratrinci fricus (70:11 411 r41 wdrIis . 114 , 4iCfS' lob 4:42=tirat 4} filthiett Peodiirthars Rase Rezated The Initial gab aided tucthII tale Ir51C4 was rhr billiem at this Rig !lore Carr-graign. The leafed rate • [1:CtrjAl ;he ed rate hy• 46'1" er lmod 1_5 F-a-ld-Of-liiereaSe Ott u - fl - A•2;i 4 CC Stft:% wilt fegIOTISC 111.11bill.rd 41:Xlep, h941,011 hole target nnn, intaiseciang the tart uJL cy•e* ps7NsIturz darroainp UBD uprrahur44. W.T. are mind .21 t&e isohz:V.Cibt41-1 and recognize your valuable ameribiztcri in malng th3 wl .11 'A Winsome Rig Bore in Indonesia and tracrrai.,,oially /2 4/ (1. ' R Stickul Sriith Chwk R. Riebe C. 1 Swartz Field Dr: II mg %Linage: Drilling 01x-ration Sups tllrW End, Slava f.er • Page 27 of 37 HALLIBURTON Underbalanced Drilling Performance Testimonials July 3, 2003 Arun Bit Bore Drilling Team EMOI Drilling, Production & G &G Staff Daya Turangga/OD &E Personnel Service Companies & Suppliers Dear Team: On behalf of the ExxonMobil Indonesia Onshore Drill Team, I would like to congratulate each and every member of the Arun Big Bore Team for the outstanding performance delivered on the Arun CIV - 2a well just completed today. The overall performance on this well and the continuous improvement exhibited from previous wells is truly world class and is undoubtedly one of the highlights for ExxonMobil Drilling worldwide this year. You should be extremely proud of what has been achieved and in recognition of your efforts you will be receiving an Arun Big Bore carry bag as a token of our appreciation. There were several outstanding achievements and the following are a selection of the most noteworthy. • "Incident Free Well" This well was drilled incident free. In fact this well continued to build on the incident free days which now stand at 82. In addition you have achieved 2 consecutive months without an incident of any kind. Our goal is "Nobody gets hurt" and nobody was on the CIV -2a. • Execution of the well from spud to TD and completion in a total of 19.9 days. This is over 14 days (42 %) faster than the previous best which was the CIII -16c. It is important to note that the CIII -16c was a pacesetting well itself earlier this year. The major contributors to drilling time reduction were: 17 -1/2" Interval- New APO record of 3068' in 24 hours Overall Improvement of 2 Days over previous best 10" full string- Resulted in overall savings of 8 days over previous best • Achievement of the highest feet per day progress rate ever achieved in a Big Bore well. At 531 fpd - this is 68% faster than the previous benchmark set earlier this year. • Realization of the lowest Big Bore NPT ever at 0.5 days and below 2 %. • Flawless execution of the drill -in liner and UBD phases of the well We have believed as a team that we could significantly improve our safety and operational performance to a level many believed unachievable. Your tireless pursuit of excellence, exceptionally high safety standards and expectations, and your willingness to continually improve have all contributed to the success that has been achieved. Again, I would like offer my profound thanks for a job well done and look forward to what we can achieve on the CIV -22 and the CIV -6a. Charles R. (Chuck) Riebe Drilling Operations Supt. Page 28 of 37 • • HALLIBURTON Underbalanced Drilling Performance Testimonials BP Amoco Press Release March 04 on 2 year Extension of Halliburton UBA Contract BP Amoco Sharjah has extended by two years an existing contract for Halliburton's Energy Services Group to provide underbalanced drilling (UBD) services in BP's Sajaa Field in Sharjah, United Arab Emirates. The extended contract capitalizes on the safe and dependable application of underbalanced services already provided by Halliburton. BP recently completed its 10th well in a very successful application of underbalanced drilling in the Sajaa field. A consortium is providing services for the BP project where Halliburton is facilitating the underbalanced portion with its advanced Four Phase Separation System, a key component in the delivery of the Halliburton Underbalanced Applications service. Using Halliburton's technology, well stream fluid returns are processed to optimize use and conform to stringent environmental requirements. Hydrocarbon recovery entails the compression and re- injection of gas and the pumping of condensate into the production line. Solids and produced water, once confirmed environmentally compatible, are disposed of to dedicated land farms. On the project, Halliburton is also using its SCANTM3 and INSITET"' Data Acquisition and Management System, which gathers and processes data from all sources and presents them in a common format throughout the onsite SCAN network system. Randy Pruitt, BP Sharjah Oil Company's drilling manager, said: "BP greatly appreciates Halliburton for the effort in the Sharjah UB CTD program, which has helped BP Sharjah reach the five million man -hours and five years without a DAFWC lost -time incident." "We are excited by the success BP is enjoying in Sharjah and are pleased that underbalanced drilling technology is enabling them to outperform benchmark production values in the field," said Gary Godwin, division vice president, Tools, Testing & Tubing Conveyed Perforating product service line, Halliburton. "Our UBA team has proactively supported a successful safety program led and committed to by BP, and we have been recognized for our leading role. We are also pleased with the opportunity to provide our reservoir- focused approach as the project moves from an initial prototype investigation to a longer term project. As the industry recognizes the value of this reservoir performance- centered approach, Halliburton looks forward to providing UBA services to a wider array of reservoirs such as fractured carbonates, reverse condensate drives, lower pressure maturing fields, and others." Page 29 of 37 • • • HALLI BURTON Underbalanced Drilling Performance Testimonials Statoil Press Release on completion of Well C - 05A, August 04 New drilling method on Gullfaks Underbalanced drilling technology has been used for the first time on the Norwegian continental shelf to implement a Statoil well on the Gullfaks field in the North Sea. This method was employed to bore through the cap rock in well C -05, which has been drilled from the Gullfaks C platform. The job was done by Halliburton, which has long experience internationally with underbalanced drilling, in cooperation with drilling contractor Prosafe. "Oil worth about NOK 1.2 billion is unrecoverable from Gullfaks with conventional drilling methods," explains Johan Eck - Olsen, project manager for underbalanced operations in Statoil. "Now that we've succeeded in applying this technology, the accessibility of these reserves could help to extend the producing life of the field." A second underbalanced well is due to be drilled from Gullfaks C later this autumn. The new technology is needed because the upper section of the cap rock in the Shetland structure has fractured as a result of water injection. Since the difference between pore and fracture pressure is small, drilling this rock with conventional methods would be difficult. During regular drilling, a well is filled with heavy mud which creates a downhole pressure higher than the formation pressure to prevent any inflow of water, oil and gas. Underbalanced drilling uses a lighter mud, giving a downhole pressure below that of the formation being drilled. This allows formation fluids to flow into the well in a controlled manner. The fluid can then be collected and conducted to the platform's process facilities during the drilling phase. "In the longer term, adopting underbalanced technology could allow us to get more resources out of fields like Kvitebjorn in the North Sea," says Mr Eck - Olsen. "This development comes on stream during the autumn, and its reservoir pressure will have sunk so much after just one year that underbalanced drilling could be appropriate." He adds that Statoil is looking at international opportunities for using the technique to optimise recovery and producing life on fields it operates in such countries as Algeria and Iran. By Bente Bergoy Miljeteig Published 24/08/2004 10:05:00 Copyright © Statoil. Page 30 of 37 • • HALLIBURTON Underbalanced Drilling Performance Testimonials 2003 Press Releases FOR IMMEDIATE RELEASE: July 7, 2003 HALLIBURTON TECHNOLOGY USED TO COMPLETE FIRST UNDERBALANCED DRILLING PROJECT IN THAILAND HOUSTON, Texas - Amerada Hess recently completed the Phu Horm 3 Sidetrack well in northeast Thailand using Halliburton's (NYSE: HAL) underbalanced drilling technology. Utilizing Underbalanced Drilling (UBD) technology was a first for Thailand. The primary objective of implementing UBD was to drill the well safely while maintaining pressure control and minimizing the severe fluid losses experienced while drilling the over - pressured reservoir section of the Phu Horm 3 well. Other objectives were to reduce formation damage and to be able to evaluate productivity and reservoir characteristics as the well was drilled. As part of the UBD contract, Halliburton's Underbalanced Applications (UBA) group provided upfront engineering and site supervision, including UBA drilling and reservoir engineering, and a highly trained team of on -site underbalanced drilling specialists and operators. Other services Halliburton provided include cryogenic nitrogen, the uniquely designed Four Phase Separation System, SCAN" and INSITE" Data Acquisition and Management system, condensate handling and storage, gas flare system, completion equipment and ancillary equipment such as downhole gauges and non - return valves. "We are delighted to support Amerada Hess on this very exciting project," said Gary Godwin, division vice president, Tools, Testing &Tubing Conveyed Perforating, Halliburton Energy Services. "Using Underbalanced Drilling technology enabled Amerada Hess to successfully drill the Phu Horm well. This would not have been possible using conventional drilling techniques and confirms that this technology has real application in drilling fractured carbonate reservoirs of this type. The future potential for growth of UBA in the international arena is very promising, as more and more major operators start to discover the significant benefits of this technology in terms of production enhancement, accessibility of incremental reserves, and the reduction or elimination of drilling problems." Halliburton Energy Services, a business unit of Halliburton, provides products, services, and integrated solutions for oil and gas exploration, development, and production. Capabilities range from initial evaluation of producing formations to drilling, completion, stimulation, and well maintenance - for a single well or an entire field. With more than 300 service centers in more than 100 countries, Halliburton possesses the global perspective that is increasingly important for energy exploration and production. Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com. Contact Zelma Branch zelma.branchOhalliburton.com Public Relations (p) 713.759.2601 Page 31 of 37 • • HALLIBURTON Underbalanced Drilling Performance Testimonials 2004 Press Releases FOR IMMEDIATE RELEASE: May 3, 2004 HALLIBURTON WINS SIX E &P MERITORIOUS ENGINEERING INNOVATION AWARDS HOUSTON, Texas - Halliburton (NYSE:HAL) announced today that it has won 6 E &P meritorious engineering awards for 2004. Bill Pike, editor in chief for E &P presented the awards today at the Offshore Technology Conference in ° Houston. "These awards represent the hard work and dedication of Halliburton employees and our commitment to staying at the forefront of technology development," said John Gibson, president and chief executive officer of Halliburton's Energy Services Group. "It is an honor for Halliburton technology to be recognized year after year by this prestigious committee. This is another example that our employees are hard at work developing solutions to ensure a sustainable future." Halliburton technologies won in several categories. Halliburton's DrillAhead® services won in wellbore construction systems. Halliburton's G- ForceT'" precision- oriented perforating system won in completions equipment. Halliburton's MicroPolymer® service won in completions systems. Halliburton's Underbalanced Applications reservoir analysis service won in subsurface characterization and analysis systems. Halliburton's WaterWeb treatment services won in production equipment. Landmark Graphics' ProMAGIC '^ system won in exploration systems. The receipt of a E &P Meritorious Engineering Award marks a company as a technological leader in the upstream oil and gas industry. The award program, now in its 33rd year, is judged independently by a panel of recognized industry experts who rank the technologies for their potential to improve efficiency, cost effectiveness, safety, and technological progress in upstream operations. Previous award winning technologies have been instrumental in the continuing technical and economic success of the upstream industry," said William Pike, editor -in -chief of E &P. DrillAhead services provides fully engineered solutions that can help increase welibore pressure containment by creating flexible stress cages around the wellbore while sealing natural and induced fractures and fissures. This new technology can help a welibore contain pressures higher than the natural fracture gradient of the formations through which it is drilled, and DrillAhead services engineering analyses, predicting achievable increases in wellbore- pressure containment, can be used to design treatments that help optimize well plans to reduce casing and liner installations. The new technology can be used to improve leakoff tests and save time regardless of whether there is a mud channel or a weak zone at the casing shoe. DrillAhead services' Widen the Mud Weight Window"' concept can help eliminate drilling casings or liners, which will result in deceases in both well construction costs and lost time. Unlike cement squeezes, which require tripping the drill string out of the hole, DrillAhead service treatments are designed to run through the bit. Eliminating tripping further reduces rig time and can decrease accident exposure for the rig crew. There is no waiting time for DrillAhead sealants to set, and drilling operations can continue immediately. The G -Force precision- oriented perforating system is an internal orienting gun system that is able to go through restrictions not possible with older systems. It can align perforations in deviated and horizontal wells in a controlled manner, greatly enhancing productivity potential from perforated intervals. Because the orienting rotational devices in the G -Force precision- oriented perforating system are inside the protective environment of the gun carrier, the orientation device does not need to overcome friction forces imposed by the casing. Eliminating multiple orientation subs increases shot efficiency to more than 90 %. Because verification can be made when shooting only one gun with all exit holes on a given gun aligned, successful perforation orientation can be confirmed, eliminating the need for post - perforation logging. The Halliburton MicroPolymer® (HMP"'") service provides a premium water -based fracturing fluid that can be easily reclaimed and reused multiple times, dramatically reducing the need for water supply and disposal. Reusing HMP" fluid recovered by flowback helps relieve the water supply and disposal problems because the same fluid is used on successive stimulation jobs. Because of its robust nature, HMP fluid enables successful fracture stimulation of historically difficult -to- fracture reservoirs. Excellent cleanup, about twice as efficient and effective as conventional fluids, is achieved without the use of gel breakers. Field results demonstrate that effective fracture lengths can increase three- to five -fold over fracture lengths resulting from the use of conventional fluids. Fracture - length increases usually make significant increases in production rates and reserves. Ultimately, HMP service may help increase the world's reserves by enabling more hydrocarbon production at lower cost. Halliburton's Underbalanced Applications reservoir analysis service is a comprehensive engineering process that integrates and sequences surface and subsurface data obtained during underbalanced drilling and then evaluates this data to characterize the reservoir and yield valuable production data such as productivity index and permeability. Measurements are taken from Halliburton's advanced data acquisition system, which acquires data, compiles and processes information, and submits the data for transmission. Halliburton's state -of- the -art, four -phase separation equipment and downhole equipment provide the data. This "testing while drilling" methodology yields important reservoir information that can greatly change reservoir knowledge. Halliburton is creating a process to test wells during the drilling phase based on data obtained while drilling and from testing designed to fit into the underbalanced application. Reservoirs not considered sufficiently economic to merit testing are automatically tested during the drilling phase, giving an abundance of reservoir knowledge to the asset manager. WaterWeb service uses unique polymer chemistry to help create oil -water separation in the reservoir, impeding Page 32 of 37 • HALLIBURTON Underbalanced Drilling Performance Testimonials water at the source and enhancing hydrocarbon flow to the wellbore. The resulting improved oil /gas recovery potential stems from a reduced water column giving improved natural lift for the residual oil and /or gas. In addition, it helps justify prolonged and sustained production by enhancing reservoir drainage. WaterWeb service works by adsorbing onto the rock surface, reducing permeability to water seven to ten times more than it does to hydrocarbons. In effect, WaterWeb service creates a barrier that holds back water while allowing oil and gas to pass freely. ProMAGIC software application links the functionality of the ProMAX® seismic data processing system to the GeoProbe® 3D volume visualization and interpretation system. This application maps the additional dimension of pre -stack seismic data into an interpretation environment for the first time, integrating the tools and technologies of two historically independent G &G disciplines to enable more accurate seismic processing results. ProMAGIC software makes it possible for geoscientists to simultaneously view terabytes of data from various perspectives or domains to identify complex geologic trends, destructive noise patterns, or anomalies that could potentially go undetected in a conventional seismic processing workflow. ProMAGIC system integrates the visualization speed and precision of the GeoProbe volume interpretation system with the processing algorithms of the ProMAX 3D seismic processing system, eliminating barriers to rapid and accurate prospect generation. The E &P Meritorious Awards for Engineering Innovation, established in 1971, honor the world's best new tools and techniques for finding, drilling, and producing oil and gas wells. Entries are judged on their innovation of concept or design, their ability to solve a real, practical oilfield problem and their potential for improving profitability, safety, or efficiency. The judging committee is composed of experienced industry personnel from around the world with respected engineering backgrounds and oilfield expertise. Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com. Contact Beverly Scippa beverly. sc i aoa(iuh al l ib urto n. c o m Public Relations (p) 713.759.2601 Page 33 of 37 • . HALLIBURTON Underbalanced Drilling Performance Testimonials 2003 Success Summary for overbalanced benchmark occurred in a near - balanced operation. Near balance does not by design, achieve Underbalanced Applications underbalanced pressures throughout the pay interval and therefore does not offer the potential to success as does true underbalanced operations. Underbalanced Applications Continues Setting Records, Out of five projects, three or 60% of the reservoirs Receiving Commendations were re evaluated for increased reserves due to much higher than expect production rates (up to 10 fold higher) coupled with significantly reduced decline rates. This increase in reserves estimates for Kent Ostroot, Global Business Manager, UBA. 60% of the projects has lead a lot of asset managers Ron Hyden, BD Marketing Manager, UBA to take another look at UBA. Industry Adoption Cycle Halliburton's Underbalanced Applications team Observing the growth of a new product in our continues to set records and receive accolades industry can be an interesting lesson in the common for lowering cost, increasing production, and characteristics of our oil field operators. This is meeting safety goals. Since becoming a Sub- particularly true for underbalanced drilling. Each PSL offering, the UBA team has been involved operator begins the tendering process with the goal of in major success stories involving both fully achieving the lowest price, but a significant issue managed project services as well as in areas quickly arises with the safety aspects involved. where UBA provided discrete equipment Operators at this stage of development look to a services. service provider with a proven safety record. As mentioned before, Halliburton UBA has an excellent record to show and that has an impact on service Safety First provider selection. In some ways it is a minimum The most impressive lesson learned by the requirement to be allowed to entire the service Halliburton UBA team is the value of great selection process. equipment, extensive engineered planning, and expert Next comes the requirement to reduce drilling personnel. These three items have lead to a costs, usually associated with a reservoir where consistent track record of safety that has been conventional drilling techniques make the recognized multiple times in 2003 by multiple construction of a competent wellbore all but operators. The UBA team has received special impossible. While these are good opportunities, they bonuses paid directly to personnel paid by the do not necessarily take full advantage of what operating companies as well as multiple letters of Halliburton's UBA process could do to positively commendation from such operators as ExxonMobil impact an operators bottom line. Nevertheless, and BP. This in spite of the fact that 3 times this year Halliburton UBA did indeed receive multiple the UBA team experienced sustain production rates commendations for reducing the overall Non of over 40 mmscf /d being produced up the back side Productive Time associated with drilling by using while drilling operations were underway. Make no underbalanced techniques to avoid the common mistake, the UBA team was properly humbled by the problems of stuck drill pipe and uncontrolled fluid experience. But as we close out the year, our UBA losses. In one case, the records set were broken by crews are justifiably proud of the fact that every one each of three successive wells. The overall drilling of the high end Class 5 wells performed in the last 18 curve summary is presented in Figure 1 below. months were done by Halliburton. Latest Scorecard Results In the most recent 5 projects where UBA provided full project management as well as equipment, the operators experienced 6 out of 7 wells (86 %) where production exceeded the conventional overbalanced benchmark in their respective fields. In these campaigns three production records were set in as many different countries. The one failure to beat the Page 34 of 37 • • HALLIBURTON Underbalanced Drilling Performance Testimonials Days vs Depth including Halliburton, the project was kicked off on the Phu Horm 3 in early 2003. Drilling operations o - C no) progressed smoothly as scheduled to first cut of pay. - 01-20 (Mar 1 00 - CI 21 (Apr The initial upper pay horizon previously deemed non - — 011 -19 (Feb 92) 1 - CII- 20 (Sep 92) commercial began contributing significant flow rates 2,000 �CIII -17 (Dec 92) - C01- 50 (Feb 95) as flow - drilling progressed. Upon entering the - CI1I-20 (Mar 93) 3 - C10- 10 (May 93) secondary pay objective the production rates - CIV -12 (Aug 93) - CII- 21 (Jun 02) stabilized at 45 mmcf /day with a minimal reservoir - C3.160 (Jul 02) 1 - C3- 15A (Sept 02) drawdown. The targpet zone was completed open C3-5A (Dec 02) Y Y 5 00 I -C3 -160 (Feb 03) hole. . --■C4-17 (ApriI 03) - C"A (Jun 03) The success of this well has now opened the door 6.000 `\ to a new $ 200 million five year development plan for 1. 5 I � . * the Phu Horm field. This development could also - I ` u lead to a major pipeline project by the Electric 6 Generating Authority of Thailand to transport the gas '� ��� from Phu Horm to the generating plant at Nam 10.00 Phong. n.a09 \111 The Underbalanced Applications (UBA) approach by Amerada Hess and Halliburton produced a total t2000 reservoir solution that was made possible by an 13. pacesetter integrated delivery of underbalanced services along 216 days front Spud with exclusive separator technology developed 14 0.0 specifically for the underbalanced environment. The 15 000 results yielded an underbalanced well construction 0 10 20 30 40 50 60 70 BO 90 100 110 120 process that provided all the traditional benefits while Days from spud offering the operator extremely useful information Figure 1 After meeting the overall drilling objectives which and knowledge about the reservoir that would not usually were the basis of the underbalanced project, otherwise been available. the impact on production rates begins to gamer The standard approach to underbalanced well significant visibility. As mentioned in the scorecard construction allows: summary above, operators are having great success • Reduce formation damage during the drilling and on underbalanced campaigns when they rely on completion phase Halliburton's UBA team provide and insure a true • Increase future reservoir recoverables by 30 to underbalanced environment throughout the pay 50% interval. In the case illustrated by the drilling chart of • Increase ROP by up to 50% or more Figure 1, record production rates were achieved even • Increase value by producing hydrocarbons while though the well was in the lowest pressured section of drilling the reservoir! The reservoir pressures experienced • Reduce lost - circulation costs were below 50 bar. In one of the most impressive • Reduce risk of lost -in -hole equipment cases this year, the production outcome effected not • Reduce rig time associated with sidetracking only the operators bottom line, an entire country The Phu Horm project raised this approach one received a direct benefit. level by offering a reservoir analysis solution while drilling underbalanced. Thailand Power Generation Wildly Successful The Electric Generating Authority of Thailand's Industry Finds the Value 660 megawatt generating plant serving the northeast The industry therefore is exhibiting a clear adoption Udon Thani Province had been cut to 240 megawatts cycle for UBA. Expressed in Figure 2, the cycle due to declining gas supplies in the area. With gas initiates with safety and overall HSE performance supply rates cut from the original 100 mmcf/day to 50 plateau. Next comes the desire to solve an expensive mmcf/day, power generation for the area was in drilling challenge economically. In a surprisingly jeopardy. consistent pattern, the operator yields a successful Amerada Hess chose to evaluate the local Phu production result, usually involving record production Horm field with the unconventional approach of rates. At this point an asset level awareness results underbalanced drilling for the objective of increasing and major field development plans are changed. production potential and increasing reserves. While not allowing Halliburton to publish some key Working with consulting and service companies well information, Shell Exploration and Technology Page 35 of 37 1 HALLIBURTON Underbalanced Drilling Performance Testimonials has published in their own external publication, reservoirs, with substantial capital savings as a "Changes" (volume 4 May 2003), a very informative result." This quote says it all. The financial gains quote from Brian Truelove, Global Implementation seen by the oil companies have far outstripped the Manager for Underbalanced Drilling. Brian is quoted incremental increase in daily rates for drilling as, "What we're getting is a real -time well test whilst services including UBA vs. without UBA. drilling, which is giving us information we never had Halliburton's UBA offering is already following before and for several fields this has completely the pattern of classic disruptive technology and the changed the way we go about developing these industry is starting to respond. Figure 2 Maximize Asset Value Improve Reservoir Performance Reduce AFE Cost HSE Page 36 of 37 11) • HALLIBURTON Underbalanced Drilling Performance Testimonials Halliburton Published SPE Papers and Articles SPE 59743 — Reservoir Characterization During Underbalanced Drilling: A New Model. SPE 81625 — Comparison of Welibore Hydraulics Models To Maximize Control of BHP and Minimize Risk of Formation Damage. SPE 85294 — A Safe Approach to Drilling Underbalanced Starts With Project Management. SPE 85319 — Underbalanced Drilling for Production Enhancement in the Rasau Oilfield Brunei. SPE 72513 — New Generation Underbalanced Drilling 4 -Phase Surface Separation Technique Improves Operational Safety, Efficiency and Data Management Capabilities. SPE 90196 — Maximising Reservoir Potential Using Enhanced Analytical Techniques with Underbalanced Drilling. SPE 90185 - Underbalanced Drilling Of Fractured Carbonates In Northern Thailand Overcomes Conventional Drilling Problems Leading To A Major Gas Discovery Page 37 of 37 • TRANSMITTAL LETTER CHECKLIST WELL NAME t�T..� S/V / V " .3 PTD# 24 ) 8 — f39 Development, Service Exploratory Stratigraphic Test Non - Conventional Well FIELD: �O a r` POOL: u A -- Adtd S t t d U t 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 fora 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(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- 7 7 ) from records, data and Togs 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 mejhane is not allowed for (name of well) until after (Company Name) has designed and implemental 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: 111 112008 WELL PERMIT CHECKLIST Field & Pool 000GURUK, NUIQSUT UNDEF OIL - 576150 Well Name: 000GURUK NUQ ODSN-43 Program DEV Well bore seg PTD#: 2081390 Company PIONEER_NATURAL RESOURCES ALASKA INC Initial Class/Type DEV / PEND Geo Area 973 Unit 11550 On/Off Shore Off Annular Disposal 1:1 Administration 1 _Permit fee attached NA 2 Lease _nu m ber _appropriate Yes Surface location & to_p_pro_ductive interval in ADL 355936, TDin AIX 355037, 3 Unique well n_arne_and number Yes 4 _VVelllocated in a definedpool Yes 000GURUK, NUIQSUT UNDEF OIL - 576150 5 _Well_located properdistance from drilling unit boundary Yes 6 _Welllocated Proper_distance from other wells Yes 7 Sufficient _acreag_e_ayailable in drilling unit Yes 8 Jfdeviated, is wellbore platinclucled Yes 9 Operator only affected Party Yes 10 Operator has_appropriate bond in force Yes 11 Permitcan be issued without conservation order Yes Appr D 12 _Permit can be issued without administrative_a_pproval Yes SFD 9/4/2008 13 C_an permit be approved before 15-day wait Yes • 14 Well located within area and strata authorized by Injection Order # (put 10# in comments) (For Yes 15 _All wells_within 1/4_miie_area_of review identified (For service well only) NA 16 Pre-produced injector cluration_of pre-production less than 3 months (For service well only) NA 17 _N_onconven, gas_conforms to AS31.05.030(1.1.A),G2.A-D) NA Engineering 18 Conductor string provided Yes 19 _S_urface_casing_ protects allknown_USDWs NA Surface location is offshore. No known USDWs. 20 _C_IvIT_v_ol_ adequate to circ_ulate_on_cond_uctor & surf csg Yes 21 CMT vol adequate to tie-i_n_long string to_surf csg No 22 _CIVIT_will coverall knowpproductive horizons N_o Open hole_completion *armed.. 23 Casing designs adequate for C,_T, B & permafrost Yes 24 Aclequatetankage_ or reserve pit Yes Rig equipped with steel pits. No reserve pit planned._ All waste_to approved disposal well. 25 its re-drill, has a 10-403 for abandonment been approved NA 26 Adequate_wellbore separation proposed Yes Proximity analysis performed. Traveling cylinder path calculate_d. Gyros possible in surface hole. 27 if_diverter required, does _it _meet regulations NA PXD filed surface_ h_oleinfonyiation_seeks_a_diverter_walver. _Npissues_ide_ntified drilling prior wells. Appr Date 28 _Drilling fluid program schematicA equip_list_aclequate Yes Maximum expected formation pressure 9.8 EMW. Planned MW up to MO pog. PXD also plans to employ_manag TEM 9/9/2008 29 _B_OPEs„dothey _meet regulation Yes pressure _drilling_(MPD) that will maintain circulating_EMWs while _making connections. Will not be MID. e AVYk/ri 30 ,BOPE_p_ress rating ap_propriate; _test to_(put psig in _comments) Yes MASP calculated at 2455 psi, 350_0_psi 190P testplanned. 31 Choke manifold complies_ w/AP1_ RP-53 (May 84) Yes 32 Work will occur without operation _shutdown Yes 33 is presence of H2S gas probable No H2s has notb_een reported in offset_weils, Rig equipped with_sensors_ and alarms. 34 Mechanical condition of wells within AOR verified (For service well only) NA Geology 35 Permitcan be issued w/o hydrogen_s_ulfide measures Yes None expected, but operator willmodlog and monitor for H2S. 36 _D_ata_p_resented On potential overpressurezones Yes Expected max gradient is 98 ppg EMW; will be drilled with 9.8 ppg mud. _Muctwt to_ 12.5 ppg will_beused Appr Date 37 Seisrnic_analysis_ of shallow gaszones NA to control running shale in_intermadiatehple. SFD 9/4/2008 38 Seabed condition survey (if off-shore) NA 39 Contact _name/phone for weekly_progre.ss reports [exploratory only] NA Geologic Engineering Public Date: Date Date Commissioner: Co, issioner Ala viLwIll , ioner WI
