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208-204
208204 31434 Brooks Range Petroleum 510 L Street, Suite 601, Anchorage, AK 99501 Phone: 907-339-9965 Fax: 907-339-9961 Attention: Meredith Guhl Date: 11/12/2019 Address: Alaska Oil & Gas Conservation Commission 333 West 71 Ave., Suite 100 RECEIVED Anchorage, AK 99501 NOV 12 2019 Sent By: Larry Smith AO G C C File Under: Brooks Range Petroleum — North Shore -3 Core Analysis Data Transmitting: 1- Zip File containing: a. North Shore -3: Core Description b. North Shore -3: Core Photos c. North Shore -3: Summary of routine core analyses results d. North Shore -3: Calculation of net confining stress e. North Shore -3: Pore throat radii E North Shore -3: Mercury Injection Capillary Pressure Analysis g. North Shore -3: Final Field Report Description: North Shore -3 Core analysis results Additional Comments: Please sign and Fax to 907-339-9961 Signature Date I� Hzlzoq Page I of 2 DATA SUBMITTAL COMPLIANCE REPORT 2/19/2013 Permit to Drill 2082040 Well Name /No. NORTH SHORE 3 Operator BROOKS RANGE PETROLEUM API No. 50- 029 - 23410 -00 -00 MD 11414 TVD 10601 Completion Date 3/29/2010 Completion Status SUSP Current Status SUSP UIC N REQUIRED INFORMATION Mud Lo. Samples No Directional Surve DATA INFORMATION Types Electric or Other Logs Run: GR, RES, NEU, DEN, FORMATION PRESSURE & CMR (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Data Digital Dataset Log Log Run Interval OH / • Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments ED.---C f 19597 See Notes 0 0 Open 4/29/2010 Stethoscope, Final Rep, Test point table in PDF graphics ED, - C Las 19597 See Notes 0 0 Open 4/29/2010 ELAN and Provision in PDS and PDF graphics Log See Notes 2 Col 10980 11300 Open 4/29/2010 Elan Pertophyscial Eval Log — See Notes 2 Col 10800 11425 Open 4/29/2010 Vision Processed Result Rpt - See Notes Open 4/29/2010 proVision Bin Porosity Rpt -- See Notes Open 4/29/2010 Final Report Rpt — Report: Final Well R 0 0 Open End of Well Report, Op Over, Morn Reps, Bit Rec, Show Reps, Days vs Depth ED ✓t Pdf 19609 Report: Final Well R 50 11414 Open End of Well Report, Op Over, Morn Reps, Bit Rec, Show Reps, Days vs Depth w /3D PDS Mud Logs • Log , Mud Log 2 Col 105 11414 Open MD Engineering Log Log .0 Mud Log 2 Col 105 11414 Open MD Gas Ratio Log Log . Mud Log 2 Col 105 11414 Open MD Combo Log Log . Mud Log 2 Col 105 11414 Open TVD Combo Log Log - Mud Log 5 Col 105 11414 Open MD Combo Log 1,og Induction /Resistivity 2 Col 2668 11392 Open 5/21/2010 MD Scope Services Log Induction /Resistivity 5 Col 2668 11392 Open 5/21/2010 MD Scope Services Log Induction /Resistivity 2 Col 2668 11392 Open 5/21/2010 TVD Scope Services r Log Induction /Resistivity 5 Col 2668 11392 Open 5/21/2010 TVD Scope Services DATA SUBMITTAL COMPLIANCE REPORT 2/19/2013 Permit to Drill 2082040 Well Name /No. NORTH SHORE 3 Operator BROOKS RANGE PETROLEUM API No. 50- 029 - 23410 -00 -00 MD 11414 TVD 10601 Completion Date 3/29/2010 Completion Status SUSP Current Status SUSP UIC N ED .,d; Las 20114 Induction /Resistivity 47 11413 Open Multiple Triple Combo ! LWD logs in MD and TVD in LIS and PDS graphics Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments Cuttings 150 11414 3/31/2010 1301 Cores and /or Samples are required to be submitted. This record automatically created ✓ from Permit to Drill Module on: 1/26/2009. ill Core Chips 11005 11065 3/31/2010 1301 ADDITIONAL INFORMATION Well Cored? ' / N Daily History Received? / N Chips Received? O/ N Formation Tops Y N Analysis Y / e Nit. RA 6.11t i Received? Comments: Compliance Reviewed By: i Date: t t k ri+ 1, _ 1 III • • • Brooks Range Petroleum a subsidiary of A VCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 September 20, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Site Inspection of suspended well: North Shore #3 PTD # 208 -204 API# 50- 029 - 23441 -00 -00 Dear Mr. Seamount, Brooks Range Petroleum hereby submits a Sundry Report of Operations for well site inspection performed on North Shore #3 drill site. North Shore #3 is currently suspended. Please find attached the following documents: 1) Form 10 -404 Sundry Report of Operations 2) A plat showing the surface location of the well 3) Site inspection checklist 4) Drill site inspection photos If you have any questions or require additional information, please contact me at (907) 865 -5840 or Natasha Sachivichik at (907) 575 -7156. Sincerely, BROOKS RANGE PETROLEUM CORPORATION es R. Winegarner ice Presip1t — Land and External Affairs enclosures cc: Natasha Sachivichik - Fairweather 1 STATE OF ALASKA ALAS IL AND GAS CONSERVATION COMMIS REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon LJ Repair Well LJ Plug Perforations U Stimulate U Other Ld Site Inspection Performed: Alter Casing ❑ Pull Tubing ❑ Perforate New Pool ❑ Waiver ❑ Time Extension ❑ Change Approved Program ❑ Operat. Shutdown ❑ Perforate ❑ Re -enter Suspended Well ❑ 2. Operator Brooks Range Petroleum Corporation 4. Well Class Before Work: 5. Permit to DriII Number: Name: Development ❑ Exploratory Q \ 208 - 204 3. Address: 510 L Street, Suite 601, Anchorage, AK Stratigraphic❑ Service ❑ 6. *Number: 1341 E) - o 99501 fal% Ala 50-029-29441z0000 7. Property Designation (Lease Number): \ 8. Well Name and NumbeC ` ADL390429 1 North Shore 3 9. Field /Pool(s): Exploratory 10. Present Well Condition Summary: Total Depth measured 11,414 feet Plugs (measured) 2524 feet true vertical 10,601 feet Junk (measured) 2249 feet Effective Depth measured 12,716 feet Packer (measured) N/A feet true vertical 9,396 feet (true vertical) N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 112 20" x 34" 112 112 n/a n/a Surface 2,668 9 -5/8" 2,668 2,654 5,750 3,090 Intermediate Production Liner Perforation depth: Measured depth: N/A True Vertical depth: N/A tr i Tubing (size, grade, measured and true vertical depth): 3.5" 9.3 #/ft 2000'MD �' ' 2000' TVD Packers and SSSV (type, measured and true vertical depth): no packer no SSSV 11. Stimulation or cement squeeze summary: C'tm.cwF p 1140 ,tt 3 eo-4- 2 s'3 r N41) Intervals treated (measured): u ID 2406 MA g m Treatment descriptions including volumes used and final pressure: Gw G 7 « �.sS 0 " 12. Representative Daily Average Production or Injection Data 04- /0410 Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation: 0 0 0 0 0 13. Attachments: 14. Well Class afte work: Copies of Logs and Surveys Run n/a Exploratory 0 Devel ment Service ❑ Daily Report of Well Operations Inspection Checklist 15. Well Status after work: Oil ❑ Gas ❑ WDSPL ❑ GSTOR ❑ WAG ❑ GINJ ❑ WINJ ❑ SPLUG — 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. 10 141 0 Sundry Number or N/A if C.O. Exempt: 310 - 091 Contact N.Sachivichik 575 -7156 Printed Name Jim Winegarner Title / VPP - Land and External Affairs Signature ' ° PhoneC ) Jao y Date //t p = bAAS OCT 4 4 X4 . 2 ee So ! Foram 10 -404 Revised 7/2009 �a . "" Submit Original Only OPE . M . ORIGINAL SUBMISSION DATE: 12 -11 -09 SCALE: 1" = 200'I SHEET: 1 OF 1 I I oo ox 1 �r 1 1 NOTES: THIS Barrow PROJECT BEAUFORT SEA 1) COORDINATES SHOWN HEREON, BASED UPON FIELD OBSERVATIONS CONDUCTED NOVEMBER 21, 2009. Kaktovik '_ 2) ALL DISTANCES, COORDINATES AND ELEVATIONS ARE IN U.S. SURVEY • FEET • • Nui sut Deadhorse 3) PROTRACTED SECTION LINES SHOWN HEREON ARE CALCULATED FROM q UNITED STATES RECTANGULAR SURVEY RECORDS AND ARE APROXIMATE (------- 4) ELEVATIONS SHOWN HEREON BASED UPON ALASKA GEOID 06 (NAVD 88) .'f 5) NAD 83 VALUES SHOWN HEREON DERIVED FROM STATIC GPS SURVEY HOLDING CORS STATION "EDOC" USING TRIMBLE TGO VERSION 1.63 PA D { MS EAST EQAVENUE SUITE MONC1...A ! an Ukpeagvik Inupiat Corporation Company VICINITY MAP - NOT TO SCALE AS- STAKED DRAWING OF LEGEND ®WELL NORTH SHORE PAD A PROPOSED WELL • CONTROL POINT x TO SAK o RIVER PAD Z 0 100 200 m o SCALE IN FEET 7 0 1" = 200' 5 U1 35. N 76°06 'P° o O 2000' o fn 0, 30 0 ,) 0 rn .P CP -3 cn CP -1 g o • ce • F- r Z 3 C 0 T SCE p`O ��M(TS 0 N 0, 73 eV THE FOLLOWING POINTS ARE ALASKA STATE PLANE NAD83 ZONE 4 \ c,C• POINT NORTHING EASTING ELEV. DESCRIPTION u CP -2 CP -1 5998903.73 1767635.40 17.62' SET PK c • CP -2 5998602.34 1767985.35 16.29' SET PK co • TO CP -3 5998933.14 1768428.71 14.41' SET PK S —PAD BRP3 5999966.31 1768455.99 11.12' 2" AL. CAP NO N AS -BUILT DRAWING OF o,, NORTH SHORE PAD Z a TOWNSHIP 12 NORTH, RANGE 12 EAST, UMIAT MERIDIAN, ALASKA h BROOKS RANGE PETROLEUM DRAWN BY: KHE 1 CHECKED BY: KJP 1 W.O. No: 2007 -217 Well Inspection Check List Inspection date 14- Aug -10 Name Pete Walsh (SolstenXP P &A Supervisor) Well name North Shore -3 Client Brooks Range Petroleum API # 50- 029 - 23410 -0000 Field Name Gwydyr Bay PTD # 208 -204 Well status Suspended Item Inspected Comments Attachment /P Instructions Yes /No hntn name General location description Y General location is clean.Tundra is covered with grass. N Shore3_12 Include a brief description of the well location No tundra damage. Cellar box has 1" of water. and photographs 1 Record any signs of leaks, Y No leaks, contaminated gravel were found around the N Shore3_2 Include a brief description of leaks, identify fluid contamination or debris around area. No sheen observed in cellar box. N Shore3_12 if possible and photograph the well 2 Clear gravel around the well to Y All wellhead components are exposed above ground N Shore3_2 Include a brief description and photograph expose the well head, cellar, level. N Shore3_11 valves if needed The starting flange is located 1' above top of the cellar N Shore3_12 3 Cellar description Y Cellar box is new, corrugated metal pipe, 76" diameter, N Shore3_2 Include a type, size and condition, photograph 55" high with cement floor. The cellar appears in new N Shore3_10 condition. No visible leaks, or damage. No N Shore3_11 hydrocarbon sheen was observed on water surface 4 General Wellhead description Y Wellhead is VetcoGray MB -230. No damage noticeable N Shore3_4 Include a type, size, name, supplier, pressure on the wellhead and the tree. Both annuli sections and N Shore3_11 rating and condition, photograph the tubing section have needle valves. Valve handles are removed from wellhead 5 Wellhead lower section Y Outer annulus 9 -5/8" x 7" contains one 2" gate valve N Shore3_4 Include a type, size, name, supplier, pressure and needle valve on one side and a bull plug on N Shore3_5 rating, side outlets and condition, photograph 6 another side Well head upper section Y Inner annulus 7" x 3.5" has contains 2" gate valve and N Shore3_4 Include a type, size, name, supplier, pressure a bull blug on one side and a 2" gate valve s and a p - N Shore3_5 rating, side outlets and condition, photograph 7 gauge on another side N Shore3_6 Wellhead Top flange/ tree Y The tree is consists of 3" gate valve and 3" top cap N Shore3_4 Include a type, size, name, supplier, pressure attached to top flange 11" 5000 psi. N Shore3_8 rating, side outlets and condition, photograph 8 Check pressure gauges on the 9- Y Both Gauges show 0 psi . Record the scale, pressure reading and the gauge 5/8" x 7" and Gauge used 0 -5000 psi position, photograph 9 7" x 3.5" annulus Check pressure gauges on the Y 0 psi measured on the tubing. Record the pressure reading and the gauge tubing position, photograph 10 Check and record the condition Y All connection are in good condition, no damage, N Shore3_2 Include a brief description and photograph of the threads, connection ports minor surface rust 11 List all items damaged valves, No visible damage to wellhead observed Include a list and a brief description and connection threads, etc. photographs 12 Marker post Well marker not attached to the wellhead. Was placed N Shore3_9 Include a list and a brief description and inside cellar photographs 13 Check for pressure in tubing and Pressures were checked all annuli and tubing by annuli is safe to do opening gate valves and needle valves and reading pressure for 5 minutes. All gauges read 0 psi. 14 Make a sketch of the wellhead, Photo depicts the whole wellhead configuration. N Shore3_12 cellar and valves, include 15 dimensions • SolstenXP Contacts / Zs " , "ti) Name Position Telephone E - mail �( p,• Drilling L C 1_4 - Zgi 0 Natasha Sachivichik (907) 575 -7156 natasha.sachivichikCalsolstenxo.com Engineer Bill Penrose Drilling (907) 250 -3113 bill@solstenxo.com Manager • , .„ ., ,....., ....--.,,,,, - , - • „ akmr, . .— - . . .. -, , .... '04 ...,_ tWY. . ''''' , , . . . . . - j00.11111111/P impismoi ;* ' . - , 11 0111011111 „..„ . ' . ,. . Bro oks Range Petron eu ..... :. . . .., ...., ...., ., NORTH SHORE #3 ..: . ... API #: 50 0000 . . , ... ,' ... ........... ,..„ -44t Location: , 1867' FSL, 533 FEL, ...._ SEC 12, T12N R12 UM , , F , . 1 .4. . , Permit to Drill #: 208 204 • ,.., ...... . .... _ . .. 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( ,, , 1. h 4 a5a C ., y y y . r j 2 rt S '' ,,,,,. , ,l '' ' '''. -' ' f s t • I ' ..a . ........ , - - — • , . . , ,-, - ■,.■,. . al.',41111111111111111111111111, ....... MIM tL S .. V ' 1 \ v" lc .,. , A : i ,... .., . . , 1 • Brooks Range Petroleum 510 L Street, Suite 601, Anchorage, AK 99501 Phone: 907 - 339 -9965 Fax: 907 - 339 -9961 Attention: Dan Seamount, Chair Date: May 6, 2010 Address: Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Sent By: Larry Smith File Under: North Shore -3 Final LWD Logs Transmitting: 1- CD with Final digital LWD data in Multiple formats 1- Paper copy of final survey report 1- Triple Combo LWD Log in 1:600 scale, 112 -11414 ft MD 1- Triple Combo LWD Log in 1:600 scale, 112 -11414 ft TVD 1- Triple Combo LWD Log in 1:240 scale, 112 -11414 ft MD 1- Triple Combo LWD Log in 1:240 scale, 112 -11414 ft TVD Description: Beechey Point Unit, North Slope Alaska Additional Comments: • Please sign and Fax to 907 - 339 -9961 c)65*- _ 0 41 Oa`/ Signature Date Page 1 of 1 I 1 Brooks Range Petroleum 510 L Street, Suite 601, Anchorage, AK 99501 Phone: 907 - 339 -9965 Fax: 907 - 339 -9961 Attention: Dan Seamount, Chair Date: April 28, 2010 Address: Alaska Oil and Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Sent By: Larry Smith File Under: North Shore -3 Final LWD Logs Transmitting: 1- CD with ELAN Results in LAS, LIS and PDS formats 1- CD with StethoScope Final Report and test data in LAS format 1- ELAN Evaluation Log in 1:240 scale, 10500 ft- 11310 ft 1- Provision Processed Results Log (CMR), 1:240 scale, 10800 ft- 11410 ft. 1- StethoScope Final Processed Data Evaluation Report (paper) 1- ProVision Bin Porosity Report (paper) Description: Beechey Point Unit, North Slope Alaska Additional Comments: Please sign ,.1 d Fax to 907 - 339 -9961 Signal w Date Page 1 of 1 v . • REurlv { STATE OF ALASKA pp���� OIL AND GAS CONSERVATION COMAPION , WELL I LETI � ,h, OR RECOMPLETION REPORT AND LOG • 1a. Well Status: 1b. Well Class: • Other ❑ Aband ❑ S us pended AnCteage 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory 0 GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Brooks Range Petroleum Corporation Aband.: 3/29/2010 208 -204 3. Address: 6. Date Spudded: 13. API Number: 510 L Street , Suite 601, Anchorage, AK, 99501 3/3/2010 50- 029234100000 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1882 FSL 475' FEL S12 T12N -R12E UM 3/24/2010 North Shore 3 Top of Productive Horizon: 8. KB (ft above MSL): 52 15. Field /Pool(s): 4691' FSL 188' FEL S12 T12N -R12E UM GL (ft above MSL): 19 Total Depth: 9. Plug Back Depth(MD +TVD): Exploratory 4898' FSL 303' FEL S12 T12N -R12E UM 2524' MD / 2249' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 627913.10 y- 5999354.40 Zone- 4 1,1414' MD/ 10,601' TVD ADL 0390429 TPI: x- 628150.83 y- 6002167.63 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 628033.22 y- 6002372.43 Zone- 4 N/A LAS 24983 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 MC 25.050) N/A (ft MSL) 1873' MD / 1873' TVD 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GR, RES, NEU, DEN, Formation pressure and CMR N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 20" x 34" 91.5# / 129# A - 53/X - 56 0' 80' 0' 80' 42 Grouted to surface with 131 0 sx of Type III concrete Cemented to surface with 9 -5/8" 40 # L-80 0 2668' 0' 2654' 12.25" 9671 sx o Arcticset Light 0 and 194 sx of Class G 24. Open to production or injection? Yes No 0 If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) 3.5 ", 9.3 #, L -80 2000' N/A :4;4, {' _ ~;' 'mfg 6. ACID, FRACTURE, CEMENT SQUEEZE, ETC. • DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED //,/ _ 27. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): N/A Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate .4. 28. CORE DATA Conventional Core(s) Acquired? Yes 0 No ❑ Sidewall Cores Acquired? Yes ❑ No If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. 11.005- 11,011: Shale, dk gry, clayey, Hard, heavily burrowed, with some preserved lamination; gradational base. 11,011- 11,017.5: Mudstone, med gry, bioturbated, scattered nodular carbonate cement (Ankerite ?) 11.017.5- 11,019.8: Mudstone, med gry, dominantly bioturbated, w /scattered laminations; apparent micritic carbonate cement. 11,019.8: Pebble lamination: poorly sorted chert and quartzite clasts in shaley matrix. 11,019.8- 11,043: Ss, of -Ifg, qrtz, with glauconite grains up to 30% at top; well- sorted; thoroughly bioturbated; scattered nodular Ankerite( ?) cement; grain - size and glauconite content diminish down section; good HC shows. 11.043- 11.065.5: Ss, vfg to siltstone; scattered nodular Ankerite( ?) cement; poor HC shows, weakening down section. Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE Submit original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? U Yes ❑ No Ulf yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Colville Grp. 3099 3072 SV3 3746 3693 SV1 4172 4104 K -15 5886 5734 W Sak D 5985 5850 W Sak Marker 7860 7656 HRZ 8053 7844 Kalubik Fm 8081 7871 Kuparuk Fm 8448 8215 Kup C -1 8512 8286 LCU 8734 8500 Miluveach Fm 9804 9450 J -4 9804 9450 Fault- 70' J -3 9982 9582 J -2 10140 9692 J -1 10585 10006 Sag R Ss 10987 10296 Sag C 11031 10328 Shublik Fm 11087 10369 Ivishak Ss 11207 10456 TD 11414 10602 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: N.Sachivichik 907 - 575 -7156 Printed Name: B- rmfield Title: VP- Operations Signature �� '' , Phone: 907 - 339 -9965 Date: '1 1 ari I/ • INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 �cawrlDN acv are BcstanrloN ORIGINAL SUBMISSION DATE: O4 -00 I SCALE: 1" = 200'I SHEET: 1 0 acv arc oc NOTES: THIS Barrow PROJECT BEAUFORT SEA 1) COORDINATES SHOWN HEREON, BASED UPON FIELD OBSERVATIONS CONDUCTED JANUARY 22, 2010 2) ALL DISTANCES, COORDINATES AND ELEVATIONS ARE IN U.S. SURVEY 1 Kaktovik FEET • I • � 3) PROTRACTED SECTION LINES SHOWN HEREON ARE FROM THE BLM AND uIgsut Deadhorse ARE APROXIMATE cad \--0 ‘ 1 s''''') 0 � " • GWYDER SAY 4) ELEVATIONS SHOWN HEREON BASED UPON ALASKA GEOID 06 (NAVD 88) v,K) ; 1 J 0 , y� , i � ;,' 'p-->,z-v--0, ■ 5) NAD 83 VALUES SHOWN HEREON DERIVED FROM CORPSCON 6.0 ;) °P 3 ' ( 1C \\ J ! ( * � � \ - -N ,b,0 , ° r\t' ', 11 ---,..e.k :4 ' 11, , ', .-0 j ot 0 . , 4 ' ,,, J ;; , c 4 S -P Y' LOAF. r "'' FSEABT@ AVENUE SURE M°AN°",MM. an Ukpeagvik Inupiat Corporation Company VICINITY MAP - NOT TO SCALE AS-BUILT DRAWING OF LEGEND A 20" O.D. STEEL NORTH SHORE 3 PAD CONDUCTOR O EXISTING WELL x I— TO SAK IL — RIVER PAD z CONDUCTOR LOCATED WITHIN 0 100 200 T. 12 N., R. 12 E., U.M., o SCALE 1N FEET SECTION 12 g 1" = 200' NAD 27, ZONE 4 5p0• LAT: 70 °24'23.321" N LA LONG: 148 °57'30.970" W E - N = 5,999,354.7 35 W 76 '00 �o E = 627,913.5 °• NAD 83, ZONE 4 23e to N = 5,999,107.9 ( \ E = 1,767,946.5 1 0 4 7 S I PAD ELEV = 18.1' 0 E 'gib (N N i N 1 g ° s1 N it Z ili wI� *.' A\ * m --- N CO E "C) �1Mct5 I w. 4 -20 -10 �C �, G � , . . KENNETH J. PINARD . e cp P � N `�' . No. 11545 ...<•, Z 1k, ROfESSIONI`H n5 V Z I � o TO N � \� \\�� cL S — PAD T 12 N, R 12 E, UM SECTION 12 I SURVEYORSCERTflCATE Ti 2 N, R 12 E, UM SECTION 13 I HEREBY CERTIFY THAT I AM PROPERLY REGISTERED AND LICENSED N TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS -BUILT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION AND THAT ALL DIMENSIONS AND OTHER DETAILS N ~ ARE CORRECT AS OF JANUARY 22, 2010 o AS -BUILT DRAWING OF o NORTH SHORE 3, SAG PRODUCER 0 Z i TOWNSHIP 12 NORTH, RANGE 12 EAST, UMIAT MERIDIAN, ALASKA h BROOKS RANGE PETROLEUM DRAWN BY: LHH I CHECKED BY: KJP I W.O. No: 2007-217 0 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑ Suspended lel 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory Q GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Brooks Range Petroleum Corporation Aband.: 3/29/2010 208 -204 • 3. Address: 6. Date Spudded: 13. API Number: 510 L Streety, Suite 601, Anchorage, AK, 99501 3/3/2010 50- 029234100000 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1882' FSL 475' FEL S12 T12N -R12E UM 3/24/2010 North Shore 3 Top of Productive Horizon: 8. KB (ft above MSL): 52 15. Field /Pool(s): 4691' FSL 188' FEL S12 T12N -R12E UM GL (ft above MSL): 19 Total Depth: 9. Plug Back Depth(MD +TVD): Exploratory 4898' FSL 303' FEL S12 T12N -R12E UM 2524' MD / 2249' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 627913.10 y- 5999354.40 Zone- 4 1,1414' MD / 10,601' TVD ADL 0390429 TPI: x- 628150.83 y- 6002167.63 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 628033.22 y- 6002372.43 Zone- 4 N/A LAS 24983 18. Directional Survey: Yes 0 No U 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD /TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 1873' MD / 1873' TVD 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GR, RES, NEU, DEN, Formation pressure and CMR N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED Grouted to surface with 131 20" x 34' 91.5# / 129# A /x - 56 0' 80' 0' 80' 42" 0 sx of Type Ill concrete Cemented to surface with 9 -5/8" 40 # L -80 0 2668' 0' 2654' 12.25" 9671 sx o Arcticset Light 0 and 194 sx of Class G 24. Open to production or injection? Yes No 0 If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) 3.5 ", 9.3 #, L -80 2000' N/A - iAflAP! c1: 7 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 3 ,l . 16 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED t 27 PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): N/A • Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period -► Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate ..-p 28. CORE DATA Conventional Core(s) Acquired? Yes 0 No ❑ Sidewall Cores Acquired? Yes ❑ No in If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 MC 25.071. 11.005- 11,011: Shale, dk gry, clayey, Hard, heavily burrowed, with some preserved lamination; gradational base. 11,011 - 11,017.5: Mudstone, med gry, bioturbated, scattered nodular carbonate cement (Ankerite ?) 11.017.5- 11.019.8: Mudstone, med gry, dominantly bioturbated, w /scattered laminations; apparent micritic carbonate cement. 11.019.8: Pebble lamination: poorly sorted chert and quartzite clasts in shaley matrix. 11,019.8- 11,043: Ss, of -Ifg, qrtz, with glauconite grains up to 30% at top; well- sorted; thoroughly bioturbated; scattered nodular Ankerite( ?) cement; grain - size and glauconite content diminish down section; good HC shows. 11,043- 11.065.5: Ss, vfg to siltstone; scattered nodular Ankerite( ?) cement; poor HC shows, weakening down section. Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE Submit original only RBDMS APR 2 1 1010 c /"`!" f 2 /• /o �� °/ ' iu • REC STATE OF ALASKA GAS CONSERVATION COMM RON ppWE .L OMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Gas ❑ SPLUG Ell Other Abandoned ❑ Suspended 12 1 b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory 0 WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test 2. Operator Alleharage 5. Date Comp., Susp., or 12. Permit to Drill Number: Brooks Range Petroleum Corporation Aband.: 3/29/2010 208 -204 3. Address: 6. Date Spudded: 13. API Number: 510 L Street, Suite 601, Anchorage, AK, 99501 3/3/2010 50-029 -2341 ' -0000 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Nu • .er: Surface: 1867' FSL 533' FEL S12 T12N -R12E UM 3/24/2010 No Shore 3 Top of Productive Horizon: 8. KB (ft above MSL): 52 15. Field /Pool(s): 4350' FSL 4619' FEL S7 T12N -R13E UM GL (ft above MSL): 19 Total Depth: 9. Plug Back Depth(MD +TVD): Exploratory 637' FSL 3296' FEL 51 T12N -R12E UM 2524' MD / 2249' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. P'•perty Designation: Surface: x- 627913.10 y- 5999354.40 Zone- 4 1,1414' MD / 10,601' TVD ADL 0390429 TPI: x- 628150.83 y- 6002167.63 Zone- 4 11. SSSV Depth (MD + TVD): . Land Use Permit: Total Depth: x- 628033.22 y- 6002372.43 Zone- 4 N/A LAS 24983 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshor- 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MS 1873' MD / 1873' TVD 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/TVD: GR, RES, NEU, DEN, Formation pressure and CMR N/A 23. CASING, LINER AND CEMENTING RECO' D WT. PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING FT GRADE TOP BOTTOM TOP g' ��•, HOLE SIZE CEMENTING RECORD PULLED NI Grouted to surface with 131 20" x 34' 91.5# / 129# A - 53/X - 56 0' 112' 0' N 112' 42" sx of Type Ill concrete 0 Cemented to surface with 9 -5/8" 40 # L -80 0 2668' k9r 2654' 12.25" 9671 sx of Arcticset Light 0 and 194 sx of Class G 24. Open to production or injection? Yes ❑ No III If Yes, list each 25. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation S 17,1 • Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) J \2 3.5 ", 9.3 #, L -80 2000' N/A 9QV 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. (1 DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Cl ' 27. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): N/A Date of Test: Hours Teste.. Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period -► Flow Tubing Casing • ress: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate - 28. CORE DAT Conventional Core(s) Acquired? Yes 0 No ❑ Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either que on, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas (submit separate eets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 OWILETiOt4 Sag River Formation w4 +'IT is I 11.005- 11.011: Shale, dk gry, clayey, Hard, heavily burrowed, with some preserved lamination; gradational base. _ 11,011- 11.017.5: Mudstone, med gry, bioturbated, scattered nodular carbonate cement (Ankerite ?) 11.017.5 - 11.019.8: Mudstone, med gry, dominantly bioturbated, w /scattered laminations; apparent micritic carbonate cement. 11.019.8: Pebble lamination: poorly sorted chert and quartzite clasts in shaley matrix. (� 11,019.8 - 11,029.0: Ss, vf-lfg, qrtz, with glauconite grains up to 30% at top; well - sorted; thoroughly bioturbated; scattered nodular Ankerite( ?) cement; good HC shows. 11. 029.0- 11.029.6: Phospatic shale ( ?); dk reddish brown, ankerite cement? Rubblized. 11,029.6 - 11,043: Ss, vf-lfg, qrtz, with glauconite grains up to 30% at top; well - sorted; thoroughly bioturbated; scattered nodular Ankerite( ?) cement; grain -size and glauconite content diminish down section; good HC shows. 11,043- 11,065.5: Ss, vfg to siltstone; scattered nodular Ankerite( ?) cement; poor HC shows, weakening down section. Form 10 -407 Revised 12/2009 CONTINUED ON REVERSE RBDMS APR 1 6 MAIM Submit original only 29. GEOLOGIC MARKERS (List all formation markers encountered): 30. S FORMATION TESTS NAME MD TVD Well tested? Li Yes ❑ No Ulf yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Colville Grp. 3099 3072 SV3 3746 3693 SV1 4172 4104 K -15 5886 5734 W Sak D 5985 5850 W Sak Marker 7860 7656 HRZ 8053 7844 Kalubik Fm 8081 7871 Kuparuk Fm 8448 8215 Kup C -1 8512 8286 LCU 8734 8500 Miluveach Fm 9804 9450 J -4 9804 9450 Fault 70' J -3 9982 9582 J -2 10140 9692 J -1 10585 10006 Sag R Ss 10987 10296 Sag C 11031 10328 Shublik Fm 11087 10369 Ivishak Ss 11207 10456 TD 11414 10602 31. List of Attachments: Wellbore diagram, Well As- Built, Well Operations Summary, Wellbore directional survey 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: N.Sachivichik 907 - 575 -7156 Printed Nam =: :. • Armfield Title: VP- Operations , 411 NOPP' _ _ I Signatur /n Phone: 907- 339 -9965 Date: f f J l the INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 NORTH \ 2J ° 2 Barrow SHORE BEAUFORT SEA EN PO- \14G W \ — NOTES: w PR \ I J 1) DATA SHOWN HEREON, BASED UPON FIELD 1 Kaktovik 475' OBSERVATIONS CONDUCTED JANUARY 4, 2007, JANUARY 15, 0 t "- 2010 AND MARCH 4, 2010 COMBINED WITH INFORMATION • • • I PROVIDED BY OTHERS. Nuiqsut Deadhorse w N 2) W J TRAJEC \ I ) ALL D COORDINATES AND ELEVATIONS ARE IN d Q DRAINAGE Z o U.S. SURVEY FEET , VICINITY MAP - NOT TO SCALE U I'S 3) PROTRACTED SECTION LINES SHOWN HEREON ARE ,^ m , ! _ f ea. �� .� N In CALCULATED FROM UNITED STATES RECTANGULAR SURVEY V iv f PROPOSED ► ...0 ` RECORDS AND ARE APROXIMATE Z W (�ft� CONTAINMENT P P D \M \T I� 4) ELEVATIONS SHOWN HEREON BASED UPON ALASKA _ R: d i d W GEOID 56 (NAV0 88) N � F _ a .l BERM cE ` + T �� I 5) NAD 83 VALUES SHOWN HEREON DERIVED FROM Y M 4 : ,„_. [ . • _ l 5 . \CE 504' U1 ¢ Z CORPSCON 6.0 O _ ' s z l i— ROP ASS ENGINEER ct " , j7 `,,. 1 B N 7 34 E S. a20 � S. �MI�F� q _ L 1 DUMPSTER i ` 1 , I IW L i MUD SHED CO _� ` � CONNEX � ACS 900u GONNE% ` LEGEND ' ��, t VICINITY MAP - NOT TO SCALE - © MUD LOGGER I ` NORTH SHORE 3 " 7 SAG PRODUCER 1 • _ S HACK ; 8 n 1 so EXISTING WELL (2006) ') 217 , NORTH SHORE 3 '',I N $ DRILL MUD OD. MOO TANK > I - - 1 FABRIC LINER AND � i 01 R IG CONTAINMENT DIKE u \ 16E 18,000 GALLON G ^ 2O2 \ 1 SINGLE WALL B m O J 1 EL TANK I S 3 2 ` FU t,-'6, W 1 i I ti� 1 ., ' _ _ �,I � = R \G PPD ` \M \ A T CS SPILL SMOKE SHED FUEL TANK / O �� GREY WATER Z RECCORNSE PUG UStME TANK W GENERATOR P / 7 SH ED m [QUARTERS C C DU r."---------"-\--' Li, n ~ IQ U $ o o mo O Z 11111 , � �SNED FUEL TAN' J I M �. SCALE IN FEET I W Z z_ f1 r SHED ,'$' DUMPSTER \ �\ 7 SAT. DISH , 3 .p C ° y sHE WW° / _ Z .__I o SAG PRODUCER NORTH SHORE 3 WELL ° o� PARTS --Zit \CE PPD OMIT PREVPIL \NG ' a ip ,. HOUSE LOCATED WITHIN ���� \ \\ IY Z r T. 12 N., R. 12 E., U.M., . �� 12 A L gS 1 I O O N SECTION 12 n I �RAINAGE TRAJEC -- ------- I / �,� • , Z U • ... ` '� 9', m NAD 83, ZONE 4 / *:\ 49 TH. /\ * / LAT: 70 °24'22.3" N ' ? ��_e 3 - CHECKED BY W LONG: 148 °57'42.1" W • ,o �� ^" ----- K N = 5,999,107.9' OAS E = 1,767,946.5' ' / // y � : KENNETH J. PINARD a ¢110 / , c • No 11545 ^° NAD 27, ZONE 4 (1I f f9F�' • SJQJ� PRAWMPTD E RE AS BUILT LAT: 70 °24'23.3 "N CONTAINMENT PROPOSED / \ IIi • pROfESS. IONAL�aa�' _� / I NORTHSNO 740.0" W —t S BERM N = 5,999,354.4' �_ 1 \ \ \ \\\�.\� CONTINGENCY EXHIBIT LONG: 148 °5 g u SURVEYORS CERTIFICATE E = 627,913.1' SURVEY PATE' 1440 g GROUND ELEV. = 15.3' T 12 N, R 12 E, UM SECTION 12 I HEREBY CERTIFY THAT I AM PROPERLY REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE SKEET. 1 OF 1 T 12 N, R 12 E, UM SECTION 13 STATE OF ALASKA AND THAT THIS AS- BUILT REPRESENTS A SURVEY MADE BYME UNDER MYDIRECT EXHIBIT RIG PAD ELEV. = 18.2' SUPERVISION AND THAT ALL DIMENSIONS AND OTHER DETAILS ARE CORRECT AS OF MARCH 5.2010 3 • • • North Shore #3 Well Diagram as Suspended 20" x 34" insulated conductor set @ 112' MD /TVD LJ 0' - 2053' MD - Diesel freeze - protection ► 4— 2053' of 3.5 ", 9.3 #, EUE -Mod (used) tubing (161 BBL of diesel) WBM • 10.8 ppg 2535' MD top of cement f 2,601' MD, 9 -5/8" EZ -SVB cement retainer 2668' MD/2654' TVD 9 -5/8 ", 40 #, L -80, BTC casing ■, Plug 3 - 2,604' — 2,900' MD (Calculated) WBM 10.8 ppg OH Plug 2 - 7900' — 8200' MD • OBM 10.8 ppg OH Plug 1 - 9720' — 9920' MD OBM 10.8 ppg NS -3 11,414' MD' / 10,601' TVD 8 -1/2" Open Hole NS 4/07/10 • • Drilling Operations Summary North Shore -3 (PTD # 208 -204) February 28, 2010 0' MD MW N/A ppg Vis N/A Inc10° Released rig from Sak River -lA at 24:00 hrs. Prepared cellar and tarps. Rig move operations. Set diverter spool on VetcoGray starting head. March 1, 2010 0' MD MW N/A ppg Vis N/A Inc10° Continue rig move from Sak River pad to North shore pad. March 2, 2010 0' MD MW 9.8 ppg Vis 28 Inc10° Continue rig move from Sak River pad to North shore pad. Offloaded 300 bbls of mud into pits. P/U and orient diverter spool. M/U lower flow riser on 20" Hydril, set on diverter spool. M/U knife valve on diverter spool, prepared to hook up Koomey unit lines. N/U diverter line. Function test diverter system (rig test). AOGCC rep (John Crisp) was alerted about upcoming diverter test. Service rig, service crown, drawworks, top drive. Accepted rig for operations at 24:00 hrs, 3/2/10. March 3, 2010 240' MD MW 9.5 ppg Vis 280 Incl 1.5° Service rig and set ramps for mud dock, start building viscosity in mud pits. Build mud system, add jet lines to flow line while nippling up diverter. PU 1 joint of DP, function test diverter, bag closed @ 45 sec, knife valve open at 15 sec, finish with Koomey recovery. Witnessed by John Crisp (AOGCC rep). Draw down on Koomey: 200 psi in 25 sec. Total 2.2 min. Diverter line length 105'. P/U BHA: Bit, stab, xo's, pony sub. Strap and caliper all. M/U BHA #1 and orient. Plan to drill to 530', POH and M/U new BHA. Circulate and condition mud, check for leaks in diverter stack and riser, flow test jets. Drill from 105' to 240'. Flow line plugged up with gravel, clean out flow line, shakers, and change out screens to 45. March 4, 2010 700' MD MW 9.8 ppg Vis 160 Incl 2.5° Rotary drill from 240' to 257'. Problems with flow line plugging up. Trip out of hole 2 stands HWDP. Flow line packed off. Pull plates and flush, checked jets. Slide from 257' to 297', rotate from 297' to 324'. False alarm — advised that cellar was filling from below, pumped out, all OK. Continue monitoring cellar level. Rotary drill from 324' to 348', slide from 348' to 400'. Rotary drill and slide from 400' to 528'. Trip out hole from 528' to bit, clean rig floor, clean possum belly. P/U BHA #2: 2 stabilizers, 3 DC, saver sub, RIH, at 412' tag bridge. Wash and ream from 412' to 514' at 390 gpm at 450 psi. P/U 5' pup and drilling jars, ream to 461' @ 45 rpm. Rotary drill and slide from 528' to 700'. 1 • • March 05, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Rotate and slide from 700' to 1292' MD. Rotate and slide from 1292' to 1348' MD. Service rig. Rotary drill from 1348' to 2685' MD. March 06, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Circulate and condition mud. Started POH. Found a tight spot at 1900'. Back ream through bridge /dog leg. Continue to POH to BHA. L/D BHA. Clean rig floor. R/u to run casing March 07, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° R/U to run casing. Dummy run landing joint/hanger. Run 9 -5/8" casing to 2668' (casing shoe). Circulate and condition to lower yield point of mud. Pump cement job as follows: 5 bbl of water, 50 bbl of MUDPUSH at 5BPM, 436 bbl of 10.7 ppg Lead, 45 bbl of Class G tail, displace with 10 bbl of water, switch to rig pumps 188 bbl of mud. Bumped plug at 1000 psi. No cement returns at surface. R/U to run TAM collar opening tool. March 08, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° RIH with shifting tool to TAM collar at 429' MD. Circulate and condition mud. Sting in to test seals to 500 psi. Performed second stage cement job as follows: pumped 20 bbl of water, pressure test lines to 3000 psi. Pump 340 bbl of Arcticset cement at10.7 ppg. Retuned 15 bbl of cement to surface. Pump 5 bbl of water to clear DP. Close the TAM collar and test to 3000 psi. Back out landing joint and L/D same. N/D diverter line, L/D casing running equipment. N/U wellhead, test packoff to 5000 psi for 15 min. March 09, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° N/U BOPE, hook up Koomey lines. M/U test joint, test choke manifold, top rams, 2 HCR valves, 2 manual choke valves, floor valve, dart valve, all tested to 250/5000 psi. Test annular to 250/2500 psi. g0e Test Koomey: start pressure 3050 psi, pressure after closing 1725 psi, 200 psi in 33 sec, full recovery in 3 min 17 sec. Test blind rams to 250/5000 psi. Test witnessed by Chuck Scheve, AOGCC. March 10, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Test blind rams. L/D test joint, pull test plug, set wear bushing, rig down TIW valve, clear rig floor, thaw kill line, finish loading drill pipe in pipe shed, set mouse hole in rotary. P/U and stand back 11,000 of DP. Service rig. March 11, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Blow down kill lines and top drive. PJSM before P/U BHA. M/U dir. BHA, mud motor, 8.5" bit, LWD -MWD, orient tool face, load source, M/U x- overs, stabilizers. TTH to 2555' MD, tag cement. Circulate & condition mud. Test 9 -5/8" casing to 3000 psi for 30 min. Bleed off pressure. Drill cement from 2555' to 2584', float collar at 2584' -2587, shoe at 2668'. Circulate and condition mud. Started cleaning mud system, pits, shakers, flowline to prepare to change out to OBM. 2 • 410 March 12, 2010 3,722' MD MW 10.2 ppg Vis 160 Incl 16° Cut drilling line. Clean rig. PJSM. Displace WBM in wellbore with OBM. Circulate until MW even @ 10.5 ppg throughout. Perform LOT. Result 15.17 ppg EMW. Rotary drill from 2,705' to 3,722'. Have difficulty with flowline and shakers plugging with sand. March 13, 2010 5,839' MD MW 9.8 ppg Vis 60 Incl 16° Rotary drill and slide from 3,722' to 5,839. Service rig. March 14, 2010 7,677' MD MW 9.4 ppg Vis 55 Incl 16° Dir drill 8 -1/2" hole from 5,839' to 5,922' MD. Service rig. Dir drill 8 -1/2" hole from 5,922' to 6,784', 80 rpm, 0 -12K WOB, 465 -516 gpm, 2290 psi off. Blow pop off valve on #1 pump - caused by stem failure on 4" demco between pumps. Stand back 1 stand and work pipe. Service top drive and ST80, isolate MP #1 to make repairs. Drill and slide from 6,784' to 7,677' MD. March 15, 2010 9,029' MD MW 9.5 ppg Vis 60 Incl 16° Rotary drill and slide from 7,677'to 8,555', 80 rpm, 512 gpm, 2450 psi off, 2760 psi on, tq 7.5K off, 11.5K on, up 250K, dn 217, rot 233, MW 9.5 ppg. At 8,820' had 5,500 units of connection gas - raise MW to 10.0 ppg in and out. No more abnormal gas readings. Rotary drill from 8,555' to 9,029' MD, 8,784' TVD, up 260K, dn 220K, rot 240K, wob 10 -15K. March 16, 2010 9,060' MD MW 9.8 ppg Vis 160 Incl 23° Drill f/ 9,029' to 9,060'. Problems sliding at 9,061' MD, 8,808' TVD. Reciprocate and circulate while building dry job. Pump same. POH f/ 9,061' to 1,518'. Up wt 270K. No bubbles. Pulled slick. EDS tripped off - called electrician. Trouble shoot EDS, trace wires, repair, back on line. POH f/ 1,518' to 247'. P/U jt DP on top of 1st HWDP. L/D BHA f/ 247', remove sources, clear rig floor. Pull wear ring and set test plug. P/U test tools, R/U to test BOPE. Test BOPE as follows: choke, TD, floor equipment to 250/5,000 psi for 5 min each. As per phone conversation with John Crisp (AOGCC) BOPE test witness waived. L/D BOP testing equipment. March 17, 2010 9,060' MD MW 10.2 ppg Vis 160Incl 45° Service rig. M/U Directional drilling BHA #4, RIH to 930'. Break circ and test tools - 480 gpm, 2250 psi. Pressure too high. POOH, trouble- shooting for problem. L/D all SLB tools, found rock pebbles plugging three bit nozzles. Flush out & LD motor. Blow down TD. Service rig: crown, drawworks, top drive. PU new motor, MU bit. MU BHA, test at 379' - 480 gpm, 1600 psi. Pressure still high. POOH to change out LWD tool. Check bit nozzles - clear. PU BHA with new LWD. MU & orient tools, load sources. RIH to 380', test at 480 gpm. 1600 psi. MWD & LWD tools functioning OK. Continue RIH. March 18, 2010 9,666' MD MW 10.2 ppg Vis 160Incl 2.5° 3 • • RIH to 2,740'. Circulate bottoms up, check MWD/LWD /motor - 480 gpm, 2240 psi. RIH to 6,098'. Fill pipe, circulate BU & check tools - 465 gpm, 2460 psi / 500 gpm, 2770 psi. RIH to 8,971', no hole problems on trip in. Wash/ream last stand to btm at 9,061' - 450 gpm, 2750 psi, 289 units gas bottoms up. Drill & slide from 9,061' to 9,202'. 50 rpm + motor, 2640 psi off btm, 2800 psi on btm, 7.5K ft -lb tq off btm, 9.5K -10.5K ft -lb tq on btm, 7K -12K WOB, 50 -100 fph ROP, 262K up. Drill/slide from 9,202' to 9,666' MD (9,348' TVD). 80 rpm + motor, 2680 psi off btm, 2800 psi March 19, 2010 10,886' MD MW 10.7 ppg Vis 90 Incl 45° Drill and slide from 9,666' to 10,886' MD with 305K up, 225K dn, 260K rot, 10K WOB, 453 gpm, 2,700 psi off btm, 2,840 psi on btm, 8K tq off btm, 9K -10K tq on btm, 40 -80 fph, 100 rpm + 127 rpm motor. Note: Saw increased mud loss thru the day, adding Baracarb 25/50 to reduce loss. March 20, 2010 10,965' MD MW 10.8 ppg Vis 60 Inc145° Drill from 10,886' to 10,965'. CBU for samples, drill to 11,002', CBU for samples, drill to 11,005', CBU for samples, identified core point. Mix dry job, survey core point. Take SPR's: MP #1 40 spm, 550 psi. MP #2 40 spm, 550 psi. Pump dry job, blow down topdrive. POH to HWDP at 833'. POH/SB HWDP & flex DC. LD CCV, MWD/LWD tools, motor, bit. Clear & clean floor. POH/SB HWDP & flex DC. LD CCV, MWD/LWD tools, motor, bit. Clear & clean floor. March 21, 2010 10,965' MD MW 10.8 ppg Vis 70 Inc145° M/U coring BHA, RIH. TIH to 2,545'. Cut 102' of drilling line. Service rig. TIH f/ 2,545' to 10,779'. Wash & ream f/ 10,779' to 11,005' (No noticeable fill on bottom). 150 gpm, 30 rpm, tq 8k. Drop ball, circ down and establish coring parameters. Core f/ 11,005' to 11,065' ; 160 gpm, 1130 psi, 45 rpm, 8K -9K tq, 10 -20 fph, 4.5 hr ACT. PU & break off core. CBU, 200 gpm, 1450 psi. Monitor hole. Prepare to POH. March 22, 2010 10,965' MD MW 10.8 ppg Vis 70 Inc145° POH to 6,182'. Monitor well. CBU to balance fluid: 188 gpm, 1350 psi. Monitor hole - OK. Pull 5 stands - OK. Pump slug. POH. Stand back DC. LD CCV, ball catcher, saver sub. LD inner core barrels & core, recovered 60.5' of core. LD coring BHA. Clear floor. LD inner core barrels & core, recovered 60.5' of core. LD coring BHA. Clear floor. PU 8 -1/2" bit & BHA #8 - packed rotary drlg assy w/ MWD/LWD tools. Load RA sources. RIH w/ DC, HWDP & jars to 882'. Surf test tools, 460 -420 gpm, 1340 -1150 psi. RIH to 6,722'. Fill pipe at 2,605' & 5,669'. March 23, 2010 11,111' MD MW 10.8 ppg Vis 80 Incl 45° RIH from 6,722' to 9,088'. Tight spot at 8,340', work thru. Undergauge in build section at 9,088'. Wash & ream f/ 9,088' to 11,005'. 100 rpm, 8K -9K tq, 440 gpm, 2340 psi. Reaming thru build & turn section with stiff drilling BHA, hole conditions good. Ream out 6 -1/8" core hole to 8 -1/2" f/ 11,005' to 11,065'. 7K -15K WOB, 100 rpm, 11K tq, 440 gpm, 2340 psi. ADT 1.9 hr. Drill 8 -1/2" hole f/ 11,065' to 11,111'. 290K up, 240K dn, 270K rot, 15K -20K WOB, 450 gpm, 2340 psi, 100 rpm, 12K -13K tq. ADT 3.5 hrs. 4 • 11, March 24, 2010 11,414' MD MW 10.8 ppg Vis 90 Inc1 Drill from 11,111' to 11,141'. 290K up, 240K dn, 270K rot, 15K -25K WOB, 110 rpm, 450 gpm, 2,340 psi, 10K -11K tq, ADT 1.0 hr. Take pressure surveys in Sag River sand with SLB StethoScope LWD. Made stops at 11,118', 11,117', 11,111', 11,103', 11,099', 11,097' & 11,095' (7 total). Drill from 11,141' to 11,261'. 290K up, 240K dn, 270K rot, 10K -20K WOB, 120 rpm, 470 gpm, 2,400 psi, 11K tq, ADT 5.5 hrs. Drill from 11,261' to 11,414'. 295K up, 240K dn, 270K rot, 10K -25K WOB, 120 rpm, 450 gpm, Drill from 11,261' to 11,414'. 295K up, 240K dn, 270K rot, 10K -25K WOB, 120 rpm, 450 gpm, 2,440 psi, 11K -14K tq, ADT 6.1 hrs. Pump 25 bbl hi -vis sweep & circ around - hole clean, 450 gpm, 2440 psi. Monitor hole. POH f/ 11,414' to 8,924'. No tight spots, hole in good condition. 275K up, 230K dn. March 25, 2010 11,414' MD MW 10.8 ppg Vis 90 Inc145° POH standing back 88 stands on ODS. POH LD 69 joints DP. POH LD 20 joints HWDP & jars. POH LD BHA #8: CCV, saver sub, flex DC, stabs, LWD, MWD tools. Clear & clean floor. Pull wear bushing. Set test plug, MU test joint. R U to test, fill stack & choke with water. Test BOPE: All rams, choke & kill lines, choke manifold valves, top drive valves, floor safety valves to 250 psi low /5,000 psi high, Hydril to 250 psi low /2,500 psi high. Perform accumulator capacity test, 1650 psi after closure, +200 psi in 30 sec, full pressure in 175 sec. Witnessing of test waived by Chuck Scheve, AOGCC Inspector. LD test tools. RD test equipment. Blowdown choke, top drive, & kill line. Service top drive, drawworks & crown. Set wear bushing. Load 3 -1/2 ", 15.5# DP & 5 "DP into pipe shed, tally same. RU 3 -1/2" handling tools. RIH PU 15 joints 3 -1/2" DP cement stinger (460'). MU XO & 5" DP pup. RIH PU 5" DP to 827'. March 26, 2010 11,414' MD MW 10.7 ppg Vis 90 Inc145° RIH with 460' of 3 -1/2" DP stinger, PU 5" DP (32 jts). RIH. Tugger line snagged on top drive, broke derrick finger and cork screwed cable. Cracked derrick finger and secure line. RIH to 9,923', 250K up, 225K dn. Circulate slow to condition mud & hole, reciprocate slow while WO cement blend & tests for plugs. 36 spm, 154 gpm, 420 psi. Blowdown TD & mud line. Remove SLB MWD pressure sensor from mud line. Remove SLB MWD line from console. Circ & recip slow, 36 spm, 154 gpm, 400 psi 245K up, 220K dn. SLB cementers arrived & started RU about 2030 hrs. Got OK from lab on TT test about 2230 hrs. PJSM w/ cementers in doghouse. Blowdown TD. Blow back to SLB to verify line clear. MU head pin & hose for cementing. SLB pump 10 Bbls water w/ surfactant down DP. PT lines to 3,500 psi. Prepare to cement. March 27, 2010 11,414' MD MW 10.7 ppg Vis 90 Inc145° SLB pump 10 bbl water w/ surfactant. PT lines to 3,500 psi. Pump 16 bbls 15.8 ppg Class G cmt, follow w/ 3 bbls water (1 bbl down DP, 2 bbl in lines). Spot with rig pump: 158 bbls, 265 gpm, 1000 psi. DP on light vacuum, pull 3 stands from 9,920' to 9,635'. Circulate BU, no 5 • 4 110 cement returns, 410 gpm, 1300 psi. P011 15 stands to 8,199'. RU lines, break circ, mud balanced. SLB pump 10 bbls water w/ surfactant ahead PT 3,500psi. Pump 24 bbls 15.8 ppg Class G _ cement, pump bbls water behind (1 bbl in DP, 2 bbl in lines). Spot balanced plug w/ rig pump, 127.3 bbls, 307 gpm, 1,000 psi. DP on light vacuum. Pull 4 stands from 8,199' to 7,816'. Circulate once around, no cement returns, 410 gpm, 1000 psi. Pull 1 stand to 7,720'. Circ slow: 135 gpm, 307 psi. Clean pits, prep to displace to WBM. Displace OBM with 10.8 ppg WBM, 282 gpm. Rotate & reciprocate pipe. POH, rack 5 stands then LDDP from 7,720' to 2,646'. Break circ, mud too thick. Build 50 bbls volume, mix & thin mud in pits, circ around at shoe, 435 gpm, 480 psi. Blow down TD. POH LD DP from 2,646' to 2,550'. March 28, 2010 11,414' MD MW 10.8 ppg Vis 60 Incl 45° POH and LD 5" DP from 2550' to 460'. POH LD 460' of 3 -1/2" DP stinger. Run in & LD 1 std 5" DP. MU setting tool on 15' pup 5" DP, RIH thru stack & wellhead for dummy run, OK. MU and set EZ -SVB retainer at 2601'. Un -sting & PT retainer to 1000 psi, OK. Sting in, establish injection rate, 1 bpm -420 psi, 2 bpm -530 psi. Line up SLB cementers. SLB pump 3.4 bbl H2O ahead. PT lines to 3500 psi. Batch mix 33 bbl of 15.8 ppg Class G cement @ 3.4 bpm, 700 psi to 400 psi. Pump 4 bbls H2O behind (2 bbl in DP, 2 bbl in lines). Rig pump displace at 3 bpm, 175 psi to 490 psi, 363 STK, 37 bbls - leaving 2 bbl 1120 and 5 bbl cement in DP. Un -sting DP on light vacuum. POH slowly 2 stands, leave 5 bbls cement POH slow 2 stands, leave 5 bbls cement on top of EZ -SVB retainer, calculated 66', Top of Cement @ 2535'MD. Circulate hole clean at 2410', no cement in returns, 7.5 - 10.5 bpm, 200 - 330 psi. Blow down top drive & mud line. RU test equipment. Test 9 -5/8" casing & EZ -SVB to 1500 psi for 30 minutes, OK. RD equipment. POH LD 15 jts DP from 2410' to 1930'. Slip & cut 95' of drilling line. Reset EDS. POH LD DP & retainer setting tool RIH 2 stands DP & LD same. Function bag & rams, flush out stack. Load 77 joints 3 -1/2 ", 9.3 #, EUE tubing in shed, tally. RU tools to run tubing/kill string, strap & tally tubing. March 29, 2010 11,414' MD MW 10.8 ppg Vis 70 Ind 45° Pull wear bushing. RU to run tubing. Run 64 joints of 3 -1/2 ", 9.3 #, L -80, EUE -Mod used tubing. MU Vetco -Gray tubing hanger. Land hanger. Test hanger seals. Kill string tail at 2053'MD, open ended. (RT to Upper LDS = 28.78'). RU Little Red Hot Oil Unit & lines. Hold PJSM. PT lines. Reverse circulate diesel in 9 -5/8" x 3 -1/2" annulus taking returns from tubing until clean diesel returns at surface, 600 psi ICP, 900 psi FCP. Pumped 161 bbls diesel, 12 bbls over to assure clean diesel around. Blowdown lines.LD LJ. Set BPV. Start ND BOPE. Cleaning BOPE for rig stack out: Open ram doors, wash out stack, remove and clean rams, grease and palletize, pressure wash stack, grease ram bodies, doors, & MU doors; Remove kill hose, kill valves, clean, grease & palletize. Flush circulating lines & clean pits: add 3 drums Baraclean to 170 bbls water, flush through pit system; Flush & clean cuttings out of flow line. Load out Mud Loggers shack, mud products. Clean 20 jts 5" DP & remove from pipe shed. Reinstall thread protectors & load out 2 loads (192 jts total) 7" casing from pipe shed, to API yard. March 30, 2010 11,414' MD MW 10.8 ppg Vis 70 Inc145° 6 • ND BOPS for rig stack -out: ND flow nipple, break down stack, ND annular, ND upper pipe ram, ND blind ram, ND lower pipe ram, manual & HCR choke line & kill line valves, ND 13 -5/8" x 11" 5K DSA. Continue cleaning pits: flush desander, pit gun lines, flush & suck out pit btms (contaminated mud/solids). Pickle MP #1, start on MP #2. Continue loading out trucks w/ 46 jts 7" from pipe shed, casing tools, mud products, etc. NU Vetco -Gray tubing head adapter and dry hole tree. Pull BPV, set TWC. Test void to loading out trucks w/ 46 jts 7" from pipe shed, casing tools, mud products, etc. NU Vetco -Gray tubing head adapter and dry hole tree. Pull BPV, set TWC. Test void to 5,000 psi for 10 min - OK. Test valve & tree cap to 5,000 psi for 10 min - OK. Pull TWC, set BPV. Secure well. Load out all wellhead tools into baskets. Continue cleaning rig & pits. Scrub & pressure wash surface equip & gratings in pits. Remove all tools, bolts, etc. f/ cellar, scrub & pressure wash top landings & windwalls in cellar. Install blanks on BR body, make covers for top of BOPS, palletize all valves, rams, etc. Continue loading out trailers. NOTE: Chuck Scheve, AOGCC Inspector, witnessed setting EZ -SVB retainer and cement squeeze of 9 -5/8" shoe thru retainer. After un- stinging, pulling 2 stands, leaving 5 bbls cement on top of EZ -SVB, & circulating hole clean, the casing and EZ -SVB were tested to 1,500 psi for 30 minutes - OK. Chuck came back later to verify test chart. March 31, 2010 11,414' MD MW 10.8 ppg Vis 80 1nc145° Continue cleaning pits and rig floor. Prep choke manifold for stack -out. Load out rig miscellaneous equipment on trucks. Continue with cleaning rig and loading out misc rig equipment. April 1, 2010 11,414' MD MW 10.8 ppg Vis 90 1nc145° Continue cleaning pits, clean on rig floor, clean drip pan under floor, clean Pit #1, #2, #3 and cuttings tank. Finish cleaning pits, clean cuttings tank, and removed bales from top drive, load out rig equipment in yard and send to Nabors yard in Deadhorse. Rig released @ 11:59 pm, April l 2010. 7 RECEIVE[ APR s 2010 Brooks Range Petroleum u m ��°'��`����' g Anchorage a subsidiary ofA VCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 April 07, 2010 Mr. Dan Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report Brooks Range Petroleum Corporation, North Shore #3 PTD No. 208 -204 API No. 50- 029 - 23410 -00 -00 Sundry No. 310 -091 Dear Commissioner Seamount, Brooks Range Petroleum Corporation submits its Well Completion Report for the work performed in drilling its North Shore #3 exploration well on the North Slope. Please find enclosed the following information for your files: 1) Form 10 -407 Well Completion or Re- completion Report and Log 2) Well As -Built Survey 3) Wellbore Schematic 4) Well Operations Summary 5) Wellbore Directional Survey Copies of the mud log and all LWD logs run were submitted earlier under separate cover. A detailed core description and analysis will be submitted separately after the laboratory work is complete. If you have any questions or require additional information, please contact me at (907) 339 -9965 or Natasha Sachivichik at (907) 575 -7156. 1 • Sincerely, : RO • KS RANGE PETROLEUM CORPORATION 4 .111/* Bart Armfield, VP — Operations cc: Natasha Sachivichik — Fairweather E & P Services 2 4 Brooks Range Petroleum Corporation North Shore 3 Survey Report Scblumberger Report Date: 27- Mar -10 Survey 1 DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Vertical Section Azimuth: 4.730° Field: Gwydyr Bay Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: North Shore / North Shore 3 TVD Reference Datum: Rotary Table Well: North Shore 3 TVD Reference Elevation: 47.8 ft relative to MSL Borehole: North Shore 3 Sea Bed 1 Ground Level Elevation: 16.000 ft relative to MSL UWI/API#: 500292341000 Magnetic Declination: 22.195° Survey Name 1 Date: North Shore 3 / March 27, 2010 Total Field Strength: 57684.426 nT Tort/AHD 10011 ERD ratio: 108.422° / 3389.86 ft / 5.597 /0.320 Magnetic Dip: 80.976° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: March 04, 2010 Location Lat!Long: N 70 24 23.321, W 148 57 30.969 Magnetic Declination Model: BGGM 2009 . Location Grid WE Y/X: N 5999354.400 ftUS, E 627913.100 ftUS North Reference: True North Grid Convergence Angle: ;0.98110796° Total Corr Mag North -> True North: +22.195° Grid Scale Factor: 0.99991859 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical Along Hole NS EW Comments Depth Inclination True Sub -Sea TVD TVD Section Departure Closure True North True North DLS Northing Easting Latitude Longitude _ (ft ) (deg) (deg) (ft) (ft ) (ft ) (ft ) (ft) I (ft) (ft ) I (deg/100ft ) (ftUS) I (ftUS) RTE 0.00 0.00 0.00 -47.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5999354.40 627913.10 N 70 24 23.321 W 148 57 30.969 MWD 192.18 0.12 115.74 144.38 192.18 -0.07 0.20 0.20 -0.09 0.18 0.06 5999354.32 627913.28 N 70 24 23.320 W 148 57 30.964 283.82 0.06 211.92 236.02 283.82 -0.15 0.32 0.30 -0.17 0.24 0.15 5999354.23 627913.35 N 70 24 23.320 W 148 57 30.962 371.21 0.81 37.99 323.41 371.21 0.33 0.90 0.66 0.28 0.60 1.00 5999354.69 627913.69 N 70 24 23.324 W 148 57 30.951 464.19 1.46 72.25 416.37 464.17 1.33 2.69 2.43 1.16 2.13 0.98 5999355.59 627915.21 N 70 24 23.333 W 148 57 30.906 MWD +DMAG 511.92 1.69 77.69 464.08 511.88 1.77 4.00 3.71 1.49 3.40 0.57 5999355.95 627916.47 N 70 24 23.336 W 148 57 30.869 603.66 2.17 67.31 555.77 603.57 2.96 7.08 6.78 2.45 6.32 0.65 5999356.96 627919.38 N 70 24 23.345 W 148 57 30.784 692.58 2.45 65.84 644.62 692.42 4.66 10.66 10.36 3.88 9.61 0.32 5999358.44 627922.64 N 70 24 23.359 W 148 57 30.687 784.75 2.49 67.55 736.70 784.50 6.52 14.64 14.33 5.45 13.26 0.09 5999360.07 627926.26 N 70 24 23.375 W 148 57 30.580 881.57 2.98 73.80 833.41 881.21 8.38 19.25 18.94 6.95 17.62 0.59 5999361.65 627930.59 N 70 24 23.390 W 148 57 30.453 977.41 2.63 56.58 929.14 976.94 10.63 23.91 23.57 8.86 21.85 0.95 5999363.63 627934.79 N 70 24 23.408 W 148 57 3 29 1072.47 2.72 60.26 1024.09 1071.89 13.26 28.34 27.96 11.18 25.62 0.20 5999366.02 627938.53 N 70 24 23.431 W 148 57 1167.52 2.03 56.10 1119.06 1166.86 15.58 32.28 31.86 13.24 28.98 0.75 5999368.13 627941.85 N 70 24 23.452 W 148 57 3 . 40 1264.22 2.32 52.74 1215.69 1263.49 17.96 35.95 35.47 15.38 31.96 0.33 5999370.32 627944.79 N 70 24 23.473 W 148 57 30.032 1360.50 1.79 43.57 1311.91 1359.71 20.44 39.39 38.79 17.65 34.55 0.65 5999372.64 627947.34 N 70 24 23.495 W 148 57 29.957 1457.05 1.77 39.40 1408.41 1456.21 22.84 42.39 41.60 19.89 36.53 0.14 5999374.91 627949.28 N 70 24 23.517 W 148 57 29.898 1551.25 0.98 20.94 1502.59 1550.39 24.81 44.63 43.57 21.77 37.74 0.95 5999376.81 627950.46 N 70 24 23.535 W 148 57 29.863 1647.12 1.02 23.13 1598.44 1646.24 26.40 46.30 44.90 23.32 38.37 0.06 5999378.37 627951.06 N 70 24 23.551 W 148 57 29.844 1742.04 0.69 35.37 1693.35 1741.15 27.70 47.72 46.12 24.56 39.03 0.40 5999379.63 627951.71 N 70 24 23.563 W 148 57 29.825 1838.23 0.56 23.43 1789.54 1837.34 28.64 48.76 47.05 25.47 39.56 0.19 5999380.54 627952.21 N 70 24 23.572 W 148 57 29.810 1934.35 1.97 18.63 1885.63 1933.43 30.69 50.88 48.74 27.46 40.27 1.47 5999382.55 627952.89 N 70 24 23.591 W 148 57 29.789 2030.60 4.64 20.29 1981.71 2029.51 36.05 56.43 53.34 32.68 42.15 2.78 5999387.80 627954.68 N 70 24 23.643 W 148 57 29.734 2125.69 7.60 22.78 2076.25 2124.05 45.73 66.57 62.29 42.09 45.92 3.12 5999397.27 627958.29 N 70 24 23.735 W 148 57 29.623 0, 2223.46 9.53 22.17 2172.92 2220.72 59.60 81.13 75.73 55.55 51.48 1.98 5999410.82 627963.61 N 70 24 23.868 W 148 57 29.460 ,w 2315.36 11.89 24.68 2263.22 2311.02 75.76 98.20 92.02 71.20 58.30 2.62 5999426.58 627970.17 N 70 24 24.022 W 148 57 29.260 i 0 C SurveyEditor Ver SP 2.1 Bld( users) North Shore 3 \North Shore 3 \North Shore 3 \North Shore 3 Generated 5/4/2010 3:15 PM Page 1 of 4 A Measured Azimuth Vertical Along Hole NS EW Comments Depth Inclination True I Sub -Sea TVD TV D Section Departure Closure True North True North DLS Northing Easting Latitude Longitude (ft) (deg) (deg) 1 (ft ) (ft) (ft ) (ft ) (ft ) (ft) (ft) I (deg /100ft) I (ftUS) (ftUS) 2413.15 14.23 22.90 2358.47 2406.27 96.66 120.30 113.46 91.43 67.19 2.43 5999446.96 627978.71 N 70 24 24.221 W 148 57 29.000 2508.06 13.56 21.44 2450.60 2498.40 118.40 143.09 135.67 112.53 75.79 0.80 5999468.20 627986.95 N 70 24 24.428 W 148 57 28.748 2604.26 13.58 22.15 2544.12 2591.92 139.97 165.66 157.81 133.49 84.17 0.17 5999489.30 627994.97 N 70 24 24.634 W 148 57 28.502 MWD 2774.94 13.21 22.83 2710.15 2757.95 177.63 205.20 196.89 170.02 99.30 0.24 5999526.08 628009.46 N 70 24 24.993 W 148 57 28.059 2869.28 13.93 24.56 2801.86 2849.66 198.56 227.33 218.89 190.28 108.20 0.88 5999546.49 628018.02 N 70 24 25.193 W 148 57 27.798 2965.69 14.80 25.75 2895.26 2943.06 220.97 251.25 242.75 211.93 118.37 0.95 5999568.31 628027.82 N 70 24 25.406 W 148 57 27.500 3059.67 15.86 25.54 2985.89 3033.69 244.18 276.09 267.55 234.33 129.12 1.13 5999590.89 628038.18 N 70 24 25.626 W 148 57 27.185 3156.65 16.02 24.58 3079.14 3126.94 269.15 302.73 294.13 258.46 140.40 0.32 5999615.20 628049.05 N 70 24 25.863 W 148 57 26.854 3252.38 16.20 23.47 3171.11 3218.91 294.22 329.29 320.62 282.72 151.22 0.37 5999639.64 628059.44 N 70 24 26.102 W 148 57 26.537 3348.72 16.01 22.89 3263.67 3311.47 319.57 356.01 347.25 307.28 161.74 0.26 5999664.38 628069.54 N 70 24 26.343 W 148 57 26.229 3445.70 16.31 21.57 3356.82 3404.62 345.32 383.01 374.12 332.27 171.94 0.49 5999689.54 628079.32 N 70 24 26.589 W 148 57 2200 3540.99 16.60 20.13 3448.21 3496.01 371.24 410.00 400.95 357.49 181.55 0.53 5999714.92 628088.49 N 70 24 26.837 W 148 57 ' 3635.86 16.17 24.31 3539.23 3587.03 396.76 436.75 427.61 382.26 191.65 1.32 5999739.85 628098.16 N 70 24 27.081 W 148 57 2 . 2 3730.97 15.69 25.74 3630.69 3678.49 421.24 462.85 453.70 405.91 202.69 0.65 5999763.69 628108.79 N 70 24 27.313 W 148 57 25.029 3826.75 15.89 24.51 3722.85 3770.65 445.67 488.91 479.75 429.51 213.75 0.41 5999787.47 628119.45 N 70 24 27.545 W 148 57 24.705 3921.41 15.56 24.08 3813.97 3861.77 469.84 514.57 505.39 452.89 224.31 0.37 5999811.02 628129.60 N 70 24 27.775 W 148 57 24.395 4017.60 15.40 27.53 3906.67 3954.47 493.79 540.23 531.05 475.99 235.48 0.97 5999834.31 628140.37 N 70 24 28.003 W 148 57 24.068 4113.66 15.27 29.02 3999.31 4047.11 517.08 565.64 556.44 498.36 247.51 0.43 5999856.89 628152.02 N 70 24 28.223 W 148 57 23.715 4208.78 15.07 28.46 4091.12 4138.92 539.81 590.53 581.31 520.19 259.48 0.26 5999878.91 628163.61 N 70 24 28.437 W 148 57 23.364 4304.47 15.46 27.04 4183.43 4231.23 563.00 615.72 606.50 542.49 271.20 0.56 5999901.40 628174.95 N 70 24 28.657 W 148 57 23.021 4400.48 15.54 26.34 4275.95 4323.75 586.80 641.38 632.16 565.41 282.73 0.21 5999924.52 628186.08 N 70 24 28.882 W 148 57 22.683 4496.40 15.46 25.64 4368.38 4416.18 610.69 667.01 657.79 588.45 293.96 0.21 5999947.75 628196.92 N 70 24 29.109 W 148 57 22.354 4592.35 15.42 24.95 4460.87 4508.67 634.60 692.55 683.33 611.54 304.87 0.20 5999971.02 628207.43 N 70 24 29.336 W 148 57 22.034 4688.35 15.60 24.06 4553.37 4601.17 658.76 718.22 708.98 634.90 315.52 0.31 5999994.56 628217.68 N 70 24 29.565 W 148 57 21.722 4783.61 15.34 27.08 4645.18 4692.98 682.50 743.63 734.38 657.82 326.48 0.89 6000017.66 628228.24 N 70 24 29.791 W 148 57 21.401 4879.11 15.40 27.98 4737.27 4785.07 705.83 768.94 759.69 680.26 338.18 0.26 6000040.30 628239.55 N 70 24 30.012 W 148 57 21.058 4974.71 15.37 28.04 4829.44 4877.24 729.13 794.30 785.04 702.66 350.09 0.04 6000062.89 628251.08 N 70 24 30.232 W 148 57 20.709 5070.77 15.46 28.34 4922.05 4969.85 752.55 819.84 810.56 725.16 362.15 0.13 6000085.59 628262.75 N 70 24 30.453 W 148 57 20.355 5166.45 15.64 28.03 5014.22 5062.02 776.08 845.49 836.20 747.77 374.27 0.21 6000108.40 628274.48 N 70 24 30.675 W 148 57 illi 5262.13 15.88 27.45 5106.31 5154.11 800.00 871.47 862.18 770.77 386.36 0.30 6000131.61 628286.18 N 70 24 30.902 W 148 57 5357.40 15.57 27.63 5198.01 5245.81 823.81 897.29 888.00 793.66 398.30 0.33 6000154.70 628297.72 N 70 24 31.127 W 148 57 19.296 5453.53 15.44 26.13 5290.64 5338.44 847.60 922.99 913.70 816.58 409.92 0.44 6000177.81 628308.94 N 70 24 31.352 W 148 57 18.955 5548.79 15.89 25.92 5382.36 5430.16 871.57 948.71 939.42 839.70 421.20 0.48 6000201.11 628319.83 N 70 24 31.579 W 148 57 18.624 5644.73 16.41 25.13 5474.52 5522.32 896.52 975.40 966.10 863.78 432.70 0.59 6000225.39 628330.91 N 70 24 31.816 W 148 57 18.287 5740.37 16.05 24.60 5566.35 5614.15 921.61 1002.13 992.81 888.03 443.94 0.41 6000249.83 628341.73 N 70 24 32.055 W 148 57 17.958 5836.84 15.67 25.11 5659.14 5706.94 946.37 1028.49 1019.17 911.95 455.02 0.42 6000273.93 628352.40 N 70 24 32.290 W 148 57 17.633 5932.37 15.87 24.70 5751.08 5798.88 970.74 1054.45 1045.12 935.50 465.95 0.24 6000297.66 628362.93 N 70 24 32.522 W 148 57 17.313 6028.12 16.44 24.45 5843.05 5890.85 995.80 1081.09 1071.75 959.73 477.03 0.60 6000322.08 628373.59 N 70 24 32.760 W 148 57 16.988 6123.63 16.28 27.24 5934.69 5982.49 1020.89 1107.99 1098.64 983.94 488.75 0.84 6000346.48 628384.89 N 70 24 32.998 W 148 57 16.644 6219.71 15.35 28.06 6027.13 6074.93 1045.01 1134.18 1124.82 1007.13 500.90 1.00 6000369.88 628396.64 N 70 24 33.226 W 148 57 16.288 6315.13 15.24 25.57 6119.17 6166.97 1068.32 1159.34 1149.98 1029.59 512.25 0.70 6000392.52 628407.61 N 70 24 33.447 W 148 57 15.955 SurveyEditor Ver SP 2.1 Bld( users) North Shore 3 \North Shore 3 \North Shore 3 \North Shore 3 Generated 5/4/2010 3:15 PM Page 2 of 4 I Comments Measured Inclination Azimuth Sub-Sea TVD TVD Vertical Along Hole Closure NS EW DLS Northing Easting Latitude Longitude Depth True Section Departure True North True North . (ft ) (deg) (deg) I (ft) (ft) (ft ) (ft ) (ft ) _ (ft ) (ft ) (deg/100ft ) (ftUS) (ftUS) 6411.26 15.19 25.64 6211.93 6259.73 1091.90 1184.57 1175.21 1052.34 523.16 0.06 6000415.46 628418.12 N 70 24 33.671 W 148 57 15.636 6507.10 14.81 23.51 6304.51 6352.31 1115.22 1209.37 1200.00 1074.89 533.48 0.70 6000438.18 628428.05 N 70 24 33.893 W 148 57 15.333 6603.13 15.05 21.82 6397.30 6445.10 1138.76 1234.11 1224.68 1097.72 543.01 0.52 6000461.17 628437.19 N 70 24 34.117 W 148 57 15.054 6699.09 15.14 24.52 6489.95 6537.75 1162.46 1259.10 1249.63 1120.69 552.84 0.74 6000484.30 628446.62 N 70 24 34.343 W 148 57 14.766 6794.23 14.67 28.52 6581.89 6629.69 1185.18 1283.56 1274.09 1142.58 563.75 1.19 6000506.37 628457.15 N 70 24 34.558 W 148 57 14.446 6890.71 14.63 29.99 6675.23 6723.03 1207.37 1307.96 1298.45 1163.87 575.67 0.39 6000527.86 628468.71 N 70 24 34.768 W 148 57 14.096 6985.67 15.14 30.77 6767.01 6814.81 1229.36 1332.35 1322.79 1184.91 588.01 0.58 6000549.10 628480.69 N 70 24 34.974 W 148 57 13.735 7081.89 15.65 27.96 6859.77 6907.57 1252.58 1357.89 1348.29 1207.17 600.52 0.94 6000571.57 628492.82 N 70 24 35.193 W 148 57 13.368 7176.68 15.49 25.42 6951.09 6998.89 1276.17 1383.33 1373.73 1229.89 611.95 0.74 6000594.49 628503.85 N 70 24 35.417 W 148 57 13.033 7272.73 15.64 24.73 7043.61 7091.41 1300.33 1409.11 1399.49 1253.24 622.87 0.25 6000618.01 628514.37 N 70 24 35.646 W 148 57 12.713 7369.02 16.11 25.08 7136.23 7184.03 1325.06 1435.44 1425.82 1277.13 633.96 0.50 6000642.09 628525.05 N 70 24 35.881 W 148 57 12.387 7465.02 15.57 25.05 7228.59 7276.39 1349.63 1461.65 1452.02 1300.86 645.07 0.56 6000666.01 628535.74 N 70 24 36.115 W 148 57 7560.41 14.99 24.64 7320.60 7368.40 1373.23 1486.79 1477.15 1323.67 655.63 0.62 6000689.00 628545.92 N 70 24 36.339 W 148 57 7656.50 15.38 23.64 7413.34 7461.14 1396.97 1511.95 1502.30 1346.64 665.92 0.49 6000712.14 628555.81 N 70 24 36.565 W 148 57 1 51 7751.77 15.34 22.49 7505.21 7553.01 1420.92 1537.19 1527.49 1369.86 675.81 0.32 6000735.52 628565.30 N 70 24 36.793 W 148 57 11.161 7847.74 15.14 25.43 7597.80 7645.60 1444.74 1562.41 1552.69 1392.91 686.04 0.83 6000758.73 628575.14 N 70 24 37.020 W 148 57 10.861 7942.94 14.91 28.73 7689.75 7737.55 1467.55 1587.08 1577.36 1414.88 697.27 0.93 6000780.89 628585.99 N 70 24 37.236 W 148 57 10.532 8038.72 14.72 27.82 7782.35 7830.15 1490.00 1611.58 1601.83 1436.44 708.87 0.31 6000802.65 628597.22 N 70 24 37.448 W 148 57 10.191 8134.39 15.25 27.67 7874.76 7922.56 1512.77 1636.31 1626.56 1458.34 720.39 0.56 6000824.73 628608.35 N 70 24 37.663 W 148 57 9.854 8230.03 15.87 27.96 7966.90 8014.70 1536.37 1661.97 1652.21 1481.03 732.36 0.65 6000847.62 628619.93 N 70 24 37.887 W 148 57 9.503 8325.38 15.81 28.07 8058.63 8106.43 1560.28 1687.99 1678.22 1504.00 744.58 0.07 6000870.81 628631.76 N 70 24 38.113 W 148 57 9.145 8421.44 15.33 28.03 8151.16 8198.96 1583.96 1713.78 1703.99 1526.76 756.71 0.50 6000893.76 628643.49 N 70 24 38.336 W 148 57 8.789 8516.12 15.51 28.19 8242.43 8290.23 1607.06 1738.95 1729.16 1548.96 768.57 0.20 6000916.17 628654.97 N 70 24 38.555 W 148 57 8.441 8613.04 15.63 29.14 8335.80 8383.60 1630.84 1764.97 1755.15 1571.79 781.05 0.29 6000939.20 628667.06 N 70 24 38.779 W 148 57 8.075 8708.26 15.36 29.29 8427.55 8475.35 1653.99 1790.40 1780.56 1593.99 793.47 0.29 6000961.61 628679.09 N 70 24 38.998 W 148 57 7.711 8803.72 15.64 26.04 8519.54 8567.34 1677.48 1815.91 1806.06 1616.58 805.30 0.96 6000984.40 628690.54 N 70 24 39.220 W 148 57 7.365 8900.14 16.27 23.06 8612.25 8660.05 1702.41 1842.41 1832.54 1640.69 816.30 1.07 6001008.68 628701.12 N 70 24 39.457 W 148 57 7.042 8988.22 19.86 15.67 8695.99 8743.79 1728.82 1869.68 1859.57 1666.45 825.17 4.83 6001034.60 628709.55 N 70 24 39.710 W 148 57 6.782 9082.05 21.89 9.82 8783.66 8831.46 1761.90 1903.09 1892.02 1699.04 832.46 3.10 6001067.30 628716.28 N 70 24 40.031 W 148 57 6.568 9179.46 22.54 0.86 8873.87 8921.67 1798.63 1939.85 1926.39 1735.61 835.84 3.54 6001103.93 628719.03 N 70 24 40.390 W 148 5 9276.76 23.84 352.26 8963.33 9011.13 1836.45 1978.11 1959.82 1773.76 833.47 3.72 6001142.02 628716.01 N 70 24 40.765 W 148 57 6. 38 9373.39 26.86 346.91 9050.66 9098.46 1876.31 2019.45 1993.51 1814.38 825.90 3.92 6001182.51 628707.74 N 70 24 41.165 W 148 57 6.760 9469.05 29.87 342.14 9134.83 9182.63 1918.89 2064.87 2028.48 1858.12 813.69 3.94 6001226.03 628694.79 N 70 24 41.595 W 148 57 7.118 9564.69 33.71 338.16 9216.12 9263.92 1964.64 2115.23 2065.23 1905.45 796.51 4.57 6001273.05 628676.80 N 70 24 42.061 W 148 57 7.621 9660.14 37.56 333.23 9293.70 9341.50 2013.16 2170.81 2103.44 1956.04 773.54 5.03 6001323.23 628652.97 N 70 24 42.558 W 148 57 8.295 9755.52 41.43 332.45 9367.29 9415.09 2064.65 2231.46 2143.91 2009.99 745.84 4.09 6001376.70 628624.35 N 70 24 43.089 W 148 57 9.106 9850.39 43.69 333.90 9437.16 9484.96 2119.33 2295.62 2188.03 2067.26 716.90 2.60 6001433.45 628594.44 N 70 24 43.652 W 148 57 9.954 9947.36 44.40 332.25 9506.87 9554.67 2176.71 2363.03 2235.34 2127.36 686.37 1.39 6001493.02 628562.89 N 70 24 44.243 W 148 57 10.849 10043.20 44.67 330.18 9575.19 9622.99 2232.74 2430.25 2281.98 2186.26 654.00 1.54 6001551.35 628529.52 N 70 24 44.822 W 148 57 11.798 10138.90 45.76 328.69 9642.60 9690.40 2288.17 2498.17 2328.64 2244.74 619.46 1.59 6001609.23 628493.98 N 70 24 45.398 W 148 57 12.810 10234.81 45.66 329.61 9709.58 9757.38 2344.01 2566.82 2376.61 2303.68 584.25 0.69 6001667.55 628457.78 N 70 24 45.977 W 148 57 13.842 10330.58 45.04 329.26 9776.88 9824.68 2399.62 2634.95 2425.43 2362.34 549.61 0.70 6001725.61 628422.13 N 70 24 46.554 W 148 57 14.858 SurveyEditor Ver SP 2.1 Bld( users) North Shore 3 \North Shore 3 \North Shore 3 \North Shore 3 Generated 5/4/2010 3:15 PM Page 3 of 4 • Measured Azimuth Vertical Along Hole NS EW Comments Inclination Sub-Sea TVD TVD Closure DLS Northing Easting Latitude Longitude Depth True Section Departure True North True North • (ft) I (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (ft) _ (deg /100ft) (ftUS) (ftUS) 10426.57 44.41 330.44 9845.08 9892.88 2455.03 2702.50 2475.06 2420.75 515.68 1.09 6001783.42 628387.21 N 70 24 47.129 W 148 57 15.852 10521.75 45.02 328.87 9912.72 9960.52 2509.82 2769.46 2524.93 2478.53 481.84 1.33 6001840.61 628352.40 N 70 24 47.697 W 148 57 16.844 10617.42 44.54 328.72 9980.63 10028.43 2564.39 2836.85 2575.25 2536.17 446.93 0.51 6001897.64 628316.51 N 70 24 48.264 W 148 57 17.867 10713.70 43.92 328.51 10049.62 10097.42 2618.64 2904.01 2626.02 2593.50 411.96 0.66 6001954.36 628280.56 N 70 24 48.828 W 148 57 18.892 10809.62 43.68 329.95 10118.85 10166.65 2672.69 2970.40 2677.36 2650.54 377.99 1.07 6002010.81 628245.62 N 70 24 49.389 W 148 57 19.888 10905.59 43.00 329.07 10188.65 10236.45 2726.50 3036.26 2729.14 2707.30 344.57 0.95 6002066.98 628211.24 N 70 24 49.947 W 148 57 20.868 10982.51 42.29 330.01 10245.23 10293.03 2769.08 3088.37 2770.55 2752.22 318.16 1.24 6002111.43 628184.06 N 70 24 50.389 W 148 57 21.642 11078.05 43.94 330.75 10314.97 10362.77 2822.99 3153.67 2823.49 2808.98 285.89 1.81 6002167.63 628150.83 N 70 24 50.947 W 148 57 22.588 11173.17 44.34 330.77 10383.23 10431.03 2877.93 3219.91 2877.98 2866.79 253.53 0.42 6002224.87 628117.49 N 70 24 51.516 W 148 57 23.536 11270.21 44.75 330.99 10452.39 10500.19 2934.46 3287.98 2934.54 2926.25 220.41 0.45 6002283.75 628083.36 N 70 24 52.100 W 148 57 24.507 Last Survey 11366.46 45.30 331.75 10520.42 10568.22 2991.33 3356.07 2991.92 2986.02 187.79 0.80 6002342.94 628049.72 N 70 24 52.688 W 148 57 25.464 TD (Projected) 11414.00 45.30 331.75 10553.86 10601.66 3019.68 3389.86 3020.67 3015.78 171.79 0.00 6002372.43 628033.22 N 70 24 52.981 W 148 57 2 3 Survey Error Model: SLB ISCWSA version 24 * ** 3 -D 95.00% Confidence 2.7955 sigma Surveying Proq: MD From (ft ) MD To ( ft 1 EOU Freq Survey Tool Type Borehole -> Survey 0.00 31.80 Act -Stns SLB_MWD- STD -Depth Only North Shore 3 -> North Shore 3 31.80 464.19 Act -Stns SLB_MWD -STD North Shore 3 -> North Shore 3 464.19 2604.26 Act -Stns SLB_MWD +DMAG North Shore 3 -> North Shore 3 2604.26 11366.46 Act -Stns SLB_MWD -STD North Shore 3 -> North Shore 3 11366.46 11414.00 Act -Stns SLB BLIND North Shore 3 -> North Shore 3 Legal Description: Northing (Y) fftUSl Eastinq (X) fftUSI Surface : 1881 FSL 475 FEL S12 T12N R12E UM 5999354.40 627913.10 BHL : 4897 FSL 303 FEL S12 T12N R12E UM 6002372.43 628033.22 Final Definitive Survey Verify and Sign -off I have checked to the best of my ability that the following data is correct: Surface Coordinates and Reference Elevations Declination Information Survey Tool Codes • SLB DE: Client Representative: Date: SurveyEditor Ver SP 2.1 Bld( users) North Shore 3 \North Shore 3 \North Shore 3 \North Shore 3 Generated 5/4/2010 3:15 PM Page 4 of 4 • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg �I +t9(a DATE: March 28, 2010 P.I. Supervisor t SUBJECT: Casing Shoe Plug Norht Shore #3 Brooks Range Petroleum Exploration FROM: Chuck Scheve 2082040 / Petroleum Inspector CONFIDENTIAL Section: 12 Township: 12N Range: 12E Meridian: Umiat Lease No.: ADL0390429 Drilling Rig: Nabors 16E Rig Elevation: Total Depth: Operator Rep.: Dean Holt Casinq/Tubinq Data: Casing Removal: Conductor: 13 3/8 O.D. Shoe@ 117 Casing Cut@ Feet Surface: 9 5/8 O.D. Shoe@ 2668 Casing Cut@ Feet Intermediate: O.D. Shoe@ Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D. Shoe@ Casing Cut@ Feet Tubing: O.D. Tail@ Casing Cut@ Feet Woe Plug Type Plug Founded on Bottom Top of Cement Mud Weight Pressure (bottom up) of Cement Depth Verified? above plug Test Applied Csg Shoe Retainer 2928 2532 no 10.8 yes Type Plug Founded on: Verified? Open Hole Bottom Drillpipe tag Perforation Bridge plug Wireline tag Annulus Balanced C.T. Tag Casing Stub Retainer No Surface I traveled to the Brooks Range Petroleum North Shore #3 location to witness the placement and pressure test of the surface casing shoe cement plug in this well. A cement retainer was set @ 2601' with the 9 5/8 shoe at 2668. Cement of sufficient volume to fill the hole from 2928' pumped through the retainer. A 50' cement cap was then placed on top of the retainer an a successful 1500 psi pressure test was performed per the approved Sundry. Rev.:5 /28/00 by L.R.G. Csg shoe Plug North Shore#3 3 -28 -10 CS.xls 4/19/2010 • • SITAITIE LI 1 SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Bart Armfield Vice President of Operations Brooks Range Petroleum Corporation 510 L Street, Suite 600 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, North Shore #3 Sundry Number: 310 -091 Dear Mr. Armfield: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Danie T. Seamount, Jr. Chair DATED this - day of April, 2010. Encl. �� fi • • �/ ' STATE OF ALASKA RECEIVED �� ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS MAR 2 6 2010 20 AAC 25.280 ((yy)� 1. Type of Request: Abandon ❑ Plug for Redrill El Perforate New Pool El Repair Well ❑ RA ! : v . o v : Pro ram Suspend El • Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Brooks Range Petroleum Corporation Development ❑ Exploratory Ei . 208 -204 - 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 5 - c z c. 23 _cxs 510 L Street, Suit 601, Anchorage, AK, 99501 50- 029 - 234100 -000 • 3 50 . ,v 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No El North Shore # 3 9. Property Designation (Lease Number): 10. Field / Pool(s): ADL 390429 • Exploratory • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 11,414' 10,610' 11,414' 10,610' See attachments none Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 20" 112' 112' N/A N/A Surface 2668' 9 -5/8" 2668' 2654' 5750 psi 3090 psi Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): N/A N/A N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): N/A N/A 12. Attachments: Description Summary of Proposal 0 13. Well Class after proposed work: Detailed Operations Program In BOP Sketch ❑ Exploratory 0 • Development ❑ Service ❑ 14. Estimated Date for 3/26/2010 15. Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended 0' 16. Verbal Approval: Date: 3/25/2010 WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: Thomas Maunder GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact N.Sachivichik Printed Na = Bart Armfield Title VP - Operations Signature ' a �;�/ _ 5 Phone (907) 980 -2483 Date / 3/26/2010 Li z �1 O COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 YD Plug Integrity li BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: l_ �., / P r / C' ' I rt-ti' I-kt y e chv - C , - S l / reS.S4c fe f r ,�. 5"44... �^ ppG � - C G S 04t f °" .1 -1,1 5 ec'f Lo d( Z b ��c Zs. / /cic`° /o ( / S aO p s'C. Subsequent Form Required: ! 0 • 0 7 O ' APPROVED BY � Approved by: / COMMISSIONER THE COMMISSION Date: O // APR 0 5 Z01 3 v. �� c •s -3, . /z4 Form 10 -403 Remolds `" Submit in Duplicate ORIGINAL ,�04® North Shore #3 Planned Well Diagram as Suspended 20" x 34" insulated conductor set @ 112' MD /TVD 0' — 2000' MD - Diesel freeze - protection 4 2000' of 3.5 ", 9.3 #, tubing WBM 10.8 ppg • 2,600' MD, 9 -5/8" cement retainer 2668' MD/2654' TVD 9 -5/8 ", 40 #, L -80, BTC casing Plug 3 - 2,600' — 2,900' MD WBM 10.8 ppg OH Plug 2 - 7900' — 8200' MD OBM • 10.8 ppg OH Plug 1 - 9720' — 9920' MD OBM 10.8 ppg NS -3 11,414' MD' / 10,601' TVD 8 -1/2" Open Hole NS 3/25/10 • . //)//\ Brooks Range Petroleum Corporation Brooks Range Petroleum Corporation North Shore # 3 PTD 208 -204 Suspension Procedure General J There are potential hydrocarbon- bearing zones required by the AOGCC to be covered with cement during abandonment of the open hole. The suspension of this well will be accomplished by setting open -hole cement plugs from 9920' to 9720' and from 8200' to 7900; a cement retainer will be set across the 9 -5/8" surface casing shoe at 2,668' MD and 30 bbl of cement will be squeezed through the retainer. A kill string of 2000' will be run, hung off and the well freeze - protected. The AOGCC field inspector should be notified at least 24 hours before beginning this procedure and kept informed of the timing of all steps in order to allow him to witness those the Commission wishes confirmed. Open Hole Plugs 1. RIH with 300' of 3.5" tubing w/ mule shoe on drill pipe to 9920' and break circulation. 2. Pump 5 -10 barrels of water ahead. 3. Pump 16 bbl cement slurry mixed as follows: Class G cement + 0.35% D167 + 0.3% D65 + 0.03% B155 + 0.2% D46 + 5.09 gal /sx water, working time 4:30 hours. (1.16 cf /sk, 15.8 ppg, assumes hole size is 9 ") it 173 r 3Ve- 4. Pump 1 -2 bbls of water behind. Displace with OBM, under - displacing by 300 ft. Let the plug balance. 5. Pull up to -9600' and circulate to clean out cement above that depth. 6. POH to 8200', laying down drill pipe. Break circulation. 7. Prepare to set the second plug. 8. Pump 5 -10 barrels of water ahead. 9. Pump 24 bbl cement slurry mixed as follows: Class G cement + 0.35% D167 + 0.3% D65 + 0.03% B155 + 0.2% D46 + 5.09 gal /sx water, working time 4:30 hours. (1.16 cf /sk, 15.8 ppg, assumes hole size is 9 ") 10. Pump 1 -2 bbls of water behind. Displace with mud, under - displacing by 300 ft. Let the plug balance. 11. Pull up to -7800' and circulate to clean out cement above that depth. 12. Swap OBM to WBM • • P &A Procedure NS #3 13. POH to surface, laying down drill pipe. Leave 2700' of DP standing back. Casing Shoe Plug 1. RIH with a 9 -5/8" cement retainer on DP and mechanically set at 2,600'. 2. Weight test retainer then un -sting from it. 3. With the retainer running tool located just above the retainer, displace cement to the running tool then sting into the retainer and squeeze cement through it to achieve a plug across the casing shoe from the retainer to 200' below the shoe in 8 -1/2" open hole as follows: Pump 15 bbl Spacer. Follow with 35 bbls. Class G Cement+ 0.3 %D65 + 0.35 %D167 + 0.45 %S002 + 0.2 %D46. Follow with 15 bbls Spacer 4. Displace 30 bbls of cement through the retainer, un -sting from the retainer and dump the remaining 5 bbls on top. ( Sp - e.at, 711- c 5. POH, L/D drill pipe, 6. Pressure test the 9 -5/8" casing to 1,500 psi for 30 minutes. Record test on chart. Cow+'-- 4 asp Kill String and Freeze - Protection 7. P/U 2000' of 3.5, 9.3# tubing. 8. RIH and hang in the wellhead. 9. Circulate diesel down the tubing and up the annulus until clean diesel returns are observed at surface. 10. Set BPV. 11. Shut in well at surface. RECEIVED Brooks Range Petroleum Corporation MAR 2 6 2010 CM & Gas Cons.commission Anchorage March 25, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to P &A Brooks Range Petroleum Corp.: North Shore # 3 (PTD # 208 -204) Dear Mr. Seamount, Brooks Range Petroleum Corporation proposes to suspend its North Shore # 3 well. The well suspension plan includes setting two open -hole cement plugs and a cement retainer in the 9 -5/8" shoe with cement deposited below and above. A kill string consisting of 2,000' of 3.5 ", 9.3# tubing will be hung from the wellhead. The well will be freeze - protected from surface to 2,000' with diesel. The wireline and mud logs from this well have been provided to your staff for their concurrence on the cemented intervals and our plan to abandon them. The suspension of North Shore # 3 will be accomplished as indicated on the attached wellbore diagram and procedure. The wellhead will be left attached to the well. The following documents are included as attachments: 1) Completed form 10 -403 Sundry Application 2) Suspension Procedure 3) Proposed Post - Suspension Well Diagram If you have any questions or require additional information, please contact me at 339- 9965 or Natasha Sachivichik at 575 -7156. Sincerely, ___J3! • OKS RANGE PETROLEUM CORPORATION 4111/0T Bart Armfield, Vice President — Operations • • Page 1 of 1 Schwartz, Guy L (DOA) From: Bart Armfield [barmfield @brpcak.com] Sent: Friday, April 02, 2010 10:21 AM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Subject: BRPC Beechey Point Unit Plans Attachments: 1 15 09 North Shore Project Description Rev 0 Jan 2009.pdf Guy, Per our conversation yesterday, the following is a brief description of our status of current operations and plans for future activities within the Beechey Point Unit and associated North Shore Development Area. I am also including by attachment a copy of a previously released Project Description which provides details of our overall 9 Y PY P Y J P P Ian for North Shore development. P P BRPC is nearing completion of its 2010 exploration drilling program and is currently in the process of demobilization of Nabors rig 16E and all associated support and service equipment. Results of this years drilling season while still under evaluation, were marginal and require further study to identify ultimate direction and planning. Sak River #1A was truly an exploration project with a pre -drill risk factor of 1 in 5, unfortunately the well encountered mainly water from the Kuparuk formation and is currently being prepared for an Operational Suspension through your office. BRPC's decision to suspend this well rather than to P&A is based on our future plans to provide pressure maintenance for production and water support of the Saq River formation which was encountered in North Shore #3 and other surrounding accumulations. Other options being considered would be to drill a sidetrack in Sak River #1A to an up -dip target of the Kuparuk which could be reached from the existing well. The drilling of North Shore #3 identified a common oil /water contact between the Sag and Ivishak formations and presents a reduced reserve base for the North Shore development. BRPC will evaluate the findings of this years program and adjust its focus to incorporating these findings into our current 3 -D seismic and accumulation mapping of the entire Beechey Point Unit. Currently, BRPC has discovered reserves in North Shore #1, North Shore #3 and Pete's Wicked, and will spend this summer compiling recovered data to formulate a 2011 drilling program designed to reduce drilling risks and focus on adding reserves to support our development plans for the area. Feel free to contact me with any further questions or comments you may have. Regards Bart 4/2/2010 • • Page 1 of 3 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) �O p Sent: Thursday, March 25, 2010 3:57 PM To: 'Natasha Sachivichik' Cc: Schwartz, Guy L (DOA); Bill Penrose; 'Armfield Barr; DOA AOGCC Prudhoe Bay Subject: RE: P &A procedure for North Shore #3 Natasha, et al, I have spoken with Commissioner Seamount and he has given his oral approval of the plan. Please submit the sundry approval tomorrow if you can. These operations will make the well "Suspended ". The Togs do not indicate hydrocarbons are present in the well. The deep OH plug is being set to avoid "getting into" the Kingak. The shallow OH plug will provide isolation at the HRZ/Kuparuk interface. Not tagging is acceptable provided major lost circulation is not experienced. Doug feels that a fault might be present near where the shallow OH plug will be set. Some loss might be expected there. When the plug is in place, the hole must stand full. Contact the inspector for witnessing the retainer /plugging at the shoe. A pressure test will likely be called for at that time. Call or message with any questions. Tom Maunder, PE AOGCC From: Natasha Sachivichik [ mailto :natasha.sachivichik @fepsi.com] Sent: Thursday, March 25, 2010 3:45 PM To: Maunder, Thomas E (DOA) Cc: Schwartz, Guy L (DOA); Bill Penrose; ' Armfield Bart' Subject: P&A procedure for North Shore #3 Tom, As per your conversation with Bart Armfield and Doug Hastings, a decision was made on the P &A procedure for the North Shore # 3 for Brooks Range Petroleum. The P &A procedure will involve setting two open -hole cement plugs at 9720' -9920' and at 7900' -8200' We are not going to tag the these open -hole plugs, but proceed with setting a retainer. A cement retainer will be set at ^'2600', above the 9 -5/8" casing shoe (at 2668') 30 bbl of cement will be squeezed into the retainer. A kill string consisting of 2000' of 3.5 ", 9.3# tubing will be hang and the well will be freeze - protected with diesel to 2000'. Could you please let us know when can we get a verbal approval to proceed with the P &A procedure. A Sundry application will be submitted as soon as possible. Many thanks, 11.44:444 Sac/iv c a Senior Drilling Engineer Fairweather E & P Services Office: 907.264.6116 3/25/2010 Page 2 of 3 • Cell: 907.575.7156 natasha.sachivichik @fepsi.com From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, March 25, 2010 2:41 PM To: Natasha Sachivichik Cc: Schwartz, Guy L (DOA); Bill Penrose Subject: RE: Open -hole logs from the North Shore #3 Previette( ?) Natasha, What is the geological /reservoir assessment of the target interval? I am trying to get a "read" from our geologists. Tom Maunder, PE AOGCC From: Natasha Sachivichik [mailto :natasha.sachivichik @ fepsi.com] Sent: Thursday, March 25, 2010 2:28 PM To: Maunder, Thomas E (DOA) Cc: Schwartz, Guy L (DOA); Bill Penrose Subject: FW: Open -hole Togs from the North Shore #3 Tom, Guy informed me that he is going to be out of the office starting this afternoon and he asked me to forward you my message. Also, he also mentioned that the geologists are not available to look at the logs and to make a determination on cement intervals. Could you please have a look at the logs and advise on how should we proceed. Many thanks, ?hu'u a Sadior Senior Drilling Engineer Fairweather E & P Services Office: 907.264.6116 Cell: 907.575.7156 natasha.sachivichik @ fepsi.com From: Natasha Sachivichik Sent: Thursday, March 25, 2010 1:59 PM To: 'Schwartz, Guy L (DOA)' Cc: Bill Penrose Subject: Open -hole logs from the North Shore #3 Guy, Please find attached the open -hole logs from the North Shore -3. Brooks Range Petroleum is planning to suspend this well by plugging back the open -hole section and leaving the wellhead attached. We were planning to suggest to set a cement plug across the surface casing shoe and a surface plug, leaving the 3/25/2010 Page 3 of 3 • . • open -hole section unplugged. However, could you please review the logs and let me know what course of action would you suggest us to take to suspend this well. I am planning to send you a Sundry application for P &A later this afternoon. Please let me know if you have any questions about the logs. Many thanks, "head& Saektateki4 Senior Drilling Engineer Fairweather E & P Services Office: 907.264.6116 Cell: 907.575.7156 natasha.sachivichik @fepsi.com 3/25/2010 • • Page 1 of 1 Schwartz, Guy L (DOA) From: Natasha Sachivichik [natasha.sachivichik @fepsi.com] Sent: Wednesday, March 31, 20104:10 PM To: Schwartz, Guy L (DOA) Cc: Bill Penrose; Bo Darrah Subject: Plan to suspend the North Shore 3 discussion Pb 2 br°a 04 Guy, Following up our phone conversation earlier today, I would like to summarize the North Shore #3 results and the reasoning behind the decision to suspend the well. The North Shore #3 primary objectives were: a) to evaluate the Sag River formation thickness and its potential producibility and b) to confirm the location of the oil -water contact in the Ivishak reservoir. The original well plan and the approved permit to drill included drilling of two legs: a pilot hole and a production hole. The pilot hole was planned to be plugged back after drilling and the pilot hole was planned to be completed for production or for a lateral section in the future. Unfortunately, there was no potential oil- bearing reservoir discovered in the Sag and lvishak formations during drilling of the pilot hole. At this point Brooks Range decided to cancel the second leg drilling and to suspend the well. Brooks Range decided to suspend the North Shore # 3 with the intention to develop plans for future potential sidetracks after evaluating geological and geophysical data. Please let me know if you have any further questions. Thanks, 71.ataeka. Saeo Senior Drilling Engineer Fairweather E & P Services Office: 907.264.6116 Cell: 907.575.7156 natasha.sachivichik @fepsi.com 3/31/2010 Brooks Range Petroleum a subsidiary of A VCG, LLC 510 L Street, Suite 601 * Anchorage. AK 99501 * Phone (907) 339-9965 * Fax (907) 339 -9961 March 26, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Brooks Range Petroleum Corp.: North Shore -3 (PTD # 20 8-204) Dear Mr. Seamount, This is a report of Brooks Range Petroleum Corporation's well operations on the North Shore -3 for the period March 19 through March 25, 2010, inclusive. March 19, 2010 10,886' MD MW 10.7 ppg Vis 90 Inc145° Drill and slide from 9,666' to 10,886' MD with 305K up, 225K dn, 260K rot, 10K WOB, 453 gpm, 2,700 psi off btm, 2,840 psi on btm, 8K tq off btm, 9K -10K tq on btm, 40 -80 fph, 100 rpm + 127 rpm motor. Note: Saw increased mud loss thru the day, adding Baracarb 25/50 to reduce loss. March 20, 2010 10,965' MD MW 10.8 ppg Vis 60 Inc145° Drill from 10,886' to 10,965'. CBU for samples, drill to 11,002', CBU for samples, drill to 11,005', CBU for samples, identified core point. Mix dry job, survey core point. Take SPR's: MP #1 40 spm, 550 psi. MP #2 40 spm, 550 psi. Pump dry job, blow down topdrive. POH to HWDP at 833'. POH/SB HWDP & flex DC. LD CCV, MWD/LWD tools, motor, bit. Clear & clean floor. POH/SB HWDP & flex DC. LD CCV, MWD/LWD tools, motor, bit. Clear & clean floor. March 21, 2010 10,965' MD MW 10.8 ppg Vis 70 Inc145° M/U coring BHA, R111. TIH to 2,545'. Cut 102' of drilling line. Service rig. TIH f/ 2,545' to 10,779'. Wash & ream f/ 10,779' to 11,005' (No noticeable fill on bottom). 150 gpm, 30 rpm, tq 8k. Drop ball, circ down and establish coring parameters. Core f/ 11,005' to 11,065' ; 160 gpm, 1 • 1130 psi, 45 rpm, 8K -9K tq, 10 -20 fph, 4.5 hr ACT. PU & break off core. CBU, 200 gpm, 1450 psi. Monitor hole. Prepare to POH. March 22, 2010 10,965' MD MW 10.8 ppg Vis 70 Inc145° POH to 6,182'. Monitor well. CBU to balance fluid: 188 gpm, 1350 psi. Monitor hole - OK. Pull 5 stands - OK. Pump slug. POH. Stand back DC. LD CCV, ball catcher, saver sub. LD inner core barrels & core, recovered 60.5' of core. LD coring BHA. Clear floor. LD inner core barrels & core, recovered 60.5' of core. LD coring BHA. Clear floor. PU 8 -1/2" bit & BHA #8 - packed rotary drlg assy w/ MWD/LWD tools. Load RA sources. RIH w/ DC, HWDP & jars to 882'. Surf test tools, 460 -420 gpm, 1340 -1150 psi. RIH to 6,722'. Fill pipe at 2,605' & 5,669'. March 23, 2010 11,111' MD MW 10.8 ppg Vis 80 Inc145° R1H from 6,722' to 9,088'. Tight spot at 8,340', work thru. Undergauge in build section at 9,088'. Wash & ream f/ 9,088' to 11,005'. 100 rpm, 8K -9K tq, 440 gpm, 2340 psi. Reaming thru build & turn section with stiff drilling BHA, hole conditions good. Ream out 6 -1/8" core hole to 8 -1/2" f/ 11,005' to 11,065'. 7K -15K WOB, 100 rpm, 11K tq, 440 gpm, 2340 psi. ADT 1.9 hr. Drill 8 -1/2" hole f/ 11,065' to 11,111'. 290K up, 240K dn, 270K rot, 15K -20K WOB, 450 gpm, 2340 psi, 100 rpm, 12K -13K tq. ADT 3.5 hrs. March 24, 2010 11,414' MD MW 10.8 ppg Vis 90 Incl 45° Drill from 11,111' to 11,141'. 290K up, 240K dn, 270K rot, 15K -25K WOB, 110 rpm, 450 gpm, 2,340 psi, 10K -11K tq, ADT 1.0 hr. Take pressure surveys in Sag River sand with SLB StethoScope LWD. Made stops at 11,118', 11,117', 11,111', 11,103', 11,099', 11,097' & 11,095' (7 total). Drill from 11,141' to 11,261'. 290K up, 240K dn, 270K rot, 10K -20K WOB, 120 rpm, 470 gpm, 2,400 psi, 11K tq, ADT 5.5 hrs. Drill from 11,261' to 11,414'. 295K up, 240K dn, 270K rot, 10K -25K WOB, 120 rpm, 450 gpm, Drill from 11,261' to 11,414'. 295K up, 240K dn, 270K rot, 10K -25K WOB, 120 rpm, 450 gpm, 2,440 psi, 11K -14K tq, ADT 6.1 hrs. Pump 25 bbl hi -vis sweep & circ around - hole clean, 450 gpm, 2440 psi. Monitor hole. POH f/ 11,414' to 8,924'. No tight spots, hole in good condition. 275K up, 230K dn. March 25, 2010 11,414' MD MW 10.8 ppg Vis 90 Incl 45° POH standing back 88 stands on ODS. POH LD 69 joints DP. POH LD 20 joints HWDP & jars. POH LD BHA #8: CCV, saver sub, flex DC, stabs, LWD, MWD tools. Clear & clean floor. Pull wear bushing. Set test plug, MU test joint. R U to test, fill stack & choke with water. Test BOPE: All rams, choke & kill lines, choke manifold valves, top drive valves, floor safety valves to 250 psi low /5,000 psi high, Hydril to 250 psi low /2,500 psi high. Perform accumulator capacity test, 1650 psi after closure, +200 psi in 30 sec, full pressure in 175 sec. Witnessing of test waived by Chuck Scheve, AOGCC Inspector. LD test tools. RD test equipment. Blowdown choke, top drive, & kill line. Service top drive, drawworks & crown. Set wear bushing. Load 3 -1/2 ", 15.5# DP & 5 "DP into pipe shed, tally same. RU 3 -1/2" handling tools. RIH PU 15 joints 3 -1/2" DP cement stinger (460'). MU X0 & 5" DP pup. RIH PU 5" DP to 827'. 2 • • If you have any questions or require additional information, please contact me at 575 -7156. Sincerely, For For BROOKS RANGE PETROLEUM CORPORATION 7'4t444 Sae (thcclri!¢ Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Winegarner — Brooks Range 3 Brooks Range Petroleum a subsidiary ofAVCG, LLC 510 L Street. Suite 601 * Anchorage. AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 March 19, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Brooks Range Petroleum Corp.: North Shore -3 (PTD # 208 -204) Dear Mr. Seamount, This is a report of Brooks Range Petroleum Corporation's well operations on the North Shore -3 for the period March 12 through March 18, 2010, inclusive. March 12, 2010 3,722' MD MW 10.2 ppg Vis 160 Incl 16° Cut drilling line. Clean rig. PJSM. Displace WBM in wellbore with OBM. Circulate until MW even @ 10.5 ppg throughout. Perform LOT. Result 15.17 ppg EMW. Rotary drill from 2,705' to 3,722'. Have difficulty with flowline and shakers plugging with sand. March 13, 2010 5,839' MD MW 9.8 ppg Vis 60 Incl 16° Rotary drill and slide from 3,722' to 5,839. Service rig. March 14, 2010 7,677' MD MW 9.4 ppg Vis 55 Incl 16° Dir drill 8 -1/2" hole from 5,839' to 5,922' MD. Service rig. Dir drill 8 -1/2" hole from 5,922' to 6,784', 80 rpm, 0 -12K WOB, 465 -516 gpm, 2290 psi off. Blow pop off valve on #1 pump - caused by stem failure on 4" demco between pumps. Stand back 1 stand and work pipe. Service top drive and ST80, isolate MP #1 to make repairs. Drill and slide from 6,784' to 7,677' MD. March 15, 2010 9,029' MD MW 9.5 ppg Vis 60 Incl 16° 1 • . Rotary drill and slide from 7,677'to 8,555', 80 rpm, 512 gpm, 2450 psi off, 2760 psi on, tq 7.5K off, 11.5K on, up 250K, dn 217, rot 233, MW 9.5 ppg. At 8,820' had 5,500 units of connection gas - raise MW to 10.0 ppg in and out. No more abnormal gas readings. Rotary drill from 8,555' to 9,029' MD, 8,784' TVD, up 260K, dn 220K, rot 240K, wob 10 -15K. March 16, 2010 9,060' MD MW 9.8 ppg Vis 160Incl 23° Drill f/ 9,029' to 9,060'. Problems sliding at 9,061' MD, 8,808' TVD. Reciprocate and circulate while building dry job. Pump same. POH f/ 9,061' to 1,518'. Up wt 270K. No bubbles. Pulled slick. EDS tripped off - called electrician. Trouble shoot EDS, trace wires, repair, back on line. POH f/ 1,518' to 1 247'. P/U jt DP on top of 1st HWDP. L/D BHA f/ 247', remove sources, clear rig floor. Pull wear ring and set test plug. P/U test tools, R/U to test BOPE. Test BOPE as follows: choke, TD, floor equipment to 250 /5,000 psi for 5 min each. As per phone conversation with John Crisp (AOGCC) BOPE test witness waived. L/D BOP testing equipment. March 17, 2010 9,060' MD MW 10.2 ppg Vis 160Incl 45° Service rig. M/U Directional drilling BHA #4, RIH to 930'. Break circ and test tools - 480 gpm, 2250 psi. Pressure too high. POOH, trouble- shooting for problem. L/D all SLB tools, found rock pebbles plugging three bit nozzles. Flush out & LD motor. Blow down TD. Service rig: crown, drawworks, top drive. PU new motor, MU bit. MU BHA, test at 379' - 480 gpm, 1600 psi. Pressure still high. POOH to change out LWD tool. Check bit nozzles - clear. PU BHA with new LWD. MU & orient tools, load sources. RIH to 380', test at 480 gpm. 1600 psi. MWD & LWD tools functioning OK. Continue RIH. March 18, 2010 9,666' MD MW 10.2 ppg Vis 160Incl 2.5° RIH to 2,740'. Circulate bottoms up, check MWD/LWD /motor - 480 gpm, 2240 psi. RIH to 6,098'. Fill pipe, circulate BU & check tools - 465 gpm, 2460 psi / 500 gpm, 2770 psi. RIH to 8,971', no hole problems on trip in. Wash/ream last stand to btm at 9,061' - 450 gpm, 2750 psi, 289 units gas bottoms up. Drill & slide from 9,061' to 9,202'. 50 rpm + motor, 2640 psi off btm, 2800 psi on btm, 7.5K ft -lb tq off btm, 9.5K -10.5K ft -lb tq on btm, 7K -12K WOB, 50 -100 fph ROP, 262K up. Drill /slide from 9,202' to 9,666' MD (9,348' TVD). 80 rpm + motor, 2680 psi off btm, 2800 psi If you have any questions or require additional information, please contact me at 575 -7156. Sincerely, For BROOKS RANGE PETROLEUM CORPORATION ?Zataaka Sackidektk Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Winegarner — Brooks Range 2 Brooks Range Petroleum a subsidiary of A VCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 March 12, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Weekly Report of Operations Brooks Range Petroleum Corp.: North Shore -3 (PTD # 208 -204) Dear Mr. Seamount, This is a report of Brooks Range Petroleum Corporation's well operations on the North Shore -3 for the period March 05 through March 12, 2010, inclusive. March 05, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Rotate and slide from 700' to 1292' MD. Rotate and slide from 1292' to 1348' MD. Service rig. Rotary drill from 1348' to 2685' MD. March 06, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° 0' MD Circulate and condition mud. Started POH. Found a tight spot at 1900'. Back ream through bridge /dog leg. Continue to POH to BHA. L/D BHA. Clean rig floor. R/u to run casing March 07, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° R/U to run casing. Dummy run landing joint/hanger. Run 9 -5/8" casing to 2668' (casing shoe). Circulate and condition to lower yield point of mud. Pump cement job as follows: 5 bbl of water, 50 bbl of MUDPUSH at 5BPM, 436 bbl of 10.7 ppg Lead, 45 bbl of Class G tail, displace with 10 bbl of water, switch to rig pumps 188 bbl of mud. Bumped plug at 1000 psi. No cement returns at surface. R/U to run TAM collar opening tool. March 08, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° 1 • i RIH with shifting tool to TAM collar at 429' MD. Circulate and condition mud. Sting in to test seals to 500 psi. Performed second stage cement job as follows: pumped 20 bbl of water, pressure test lines to 3000 psi. Pump 340 bbl of Arcticset cement at10.7 ppg. Retuned 15 bbl of cement to surface. Pump 5 bbl of water to clear DP. Close the TAM collar and test to 3000 psi. Back out landing joint and L/D same. N/D diverter line, L/D casing running equipment. N/U wellhead, test packoff to 5000 psi for 15 min. March 09, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° N/U BOPE, hook up Koomey lines. M/U test joint, test choke manifold, top rams, 2 HCR valves, 2 manual choke valves, floor valve, dart valve, all tested to 250/5000 psi. Test annular to 250/2500 psi. Test Koomey: start pressure 3050 psi, pressure after closing 1725 psi, 200 psi in 33 sec, full recovery in 3 min 17 sec. Test blind rams to 250/5000 psi. Test witnessed by Chuck Scheve, AOGCC. March 10, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Test blind rams. L/D test joint, pull test plug, set wear bushing, rig down TIW valve, clear rig floor, thaw kill line, finish loading drill pipe in pipe shed, set mouse hole in rotary. P/U and stand back 11,000 of DP. Service rig. March 11, 2010 2685' MD MW 9.6 ppg Vis 190 Incl 16° Blow down kill lines and top drive. PJSM before P/U BHA. M/U dir. BHA, mud motor, 8.5" bit, LWD -MWD, orient tool face, load source, M/U x- overs, stabilizers. TIH to 2555' MD, tag cement. Circulate & condition mud. Test 9 -5/8" casing to 3000 psi for 30 min. Bleed off pressure. Drill cement from 2555' to 2584', float collar at 2584' -2587, shoe at 2668'. Circulate and condition mud. Started cleaning mud system, pits, shakers, flowline to prepare to change out to OBM. If you have any questions or require additional information, please contact me at 575 -7156. Sincerely, For BROOKS RANGE PETROLEUM CORPORATION Tt4ta to Seteiti t Senior Drilling Engineer Fairweather E &P Services, Inc. cc: Jim Winegarner — Brooks Range 2 • SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mr. Jim Winegarner • VP of Land Brooks Range Petroleum Corporation 510 L Street, Suite 601 Anchorage, AK 99501 Re: Exploratory, Unknown Pool, North Shore #3 Brooks Range Petroleum Corporation Permit No: 208 -204 Surface Location: 1867' FSL, 533' FEL, S12, T12N, R12E, UM Bottomhole Location: 4759' FSL, 255' FEL, S12, T12N, R13E, UM Dear Mr. Winegarner: Enclosed is the approved application for permit to drill the above referenced exploration well. 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 (North Shore #3 PH) and API number (50- 029 - 23410 -70) from records, data and logs acquired for well North Shore #3. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Should conventional core be acquired in this well, representative chip samples from each foot of core must be submitted to the Commission in accordance with 20 AAC 25.071. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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). -rel , ir tf . Norman Co • iss er DATED this / day of February, 2010 cc: Department of Fish & Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA Z 9-/e-' 1 AIWA OIL AND GAS CONSERVATION COMIION PERMIT TO DRILL 20 AAC 25.005 la. Type of Work: lb. Proposed Well Class: Development - Oil ❑ Service - Winj ❑ Single Zone 0 1c. Specify if well is proposed for: Drill eg Redrill ❑ Stratigraphic Test ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory 0 Service - WAG ❑ Service - Disp ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket ❑ Single Well ❑ 11. Well Name and Number: Brooks Range Petroleum Corporation Bond No. LPM 8842179 North Shore # 3 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 510 L Street, Suite 601, Anchorage, AK, 99501 MD: 11,247' TVD: 10,469' 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Exploratory Surface: 1867'FSL 533' FEL S12 T12N R12E UM ADL 0390429 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 4521' FSL 117' FEL S12 T12N R12E UM LAS 24983 2/5/2010 Total Depth: 9. Acres in Property: 14. Distance to Nearest Property: 4759' FSL 255' FEL S12 T12N R13E UM 2650 518' 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above f 33' 1.5" feet 15. Distance to Nearest Well Open Surface: x- 627855 y- 5999339.71 Zone- 4 GL Elevation above P 16' feet to Same Pool: 1.5 miles 16. Deviated wells: Kickoff depth: 8920 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 45 degrees Downhole: 5824 psi Surface: 4673 psi 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) 48" 20 x 34" 80' 80' 80' Grouted to surface 12 -1/4" 9 -5/8" 40# L -80 BTC -M 2660 0 0 2660' 2648' 1754 cf to surf. + 150% XS t+^ � SC 8 5/8" 7" 26# L -80 BTC -M 10866 0 0 Mg 1 4 t el6 587 cf to 7500MD +30 %XS ►d 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) ft) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. DeMh go, ft):14 (measured): Casing Length Size Cement Volume R E MD TVD Conductor /Structural JAN 2 5 2013 Surface Intermediate Production Akla3 Oil & Gas Cons. C ommiss(On Liner Au ILI lut dye Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Property Plat ❑ BOP Sketch ❑ Drilling Program 0 Time v. Depth Plot Ei Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Natasha Sachivichik 575 -7156 Printed Name Jim Winegarner Title VP of Land Signature ®,�,® --- e Phone 865 -5804 Date 1/25/2010 - Commission Use Only ,2 Permit to Drill API er: P Approval See cover letter for other Number: 8 -,Z0 50 6.Z1- 0.1, 3yI 0 0000 Date: /. Qq requirements. Conditions f approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in ,,, shales: Other: if 500 0 51 6DICI 1 / Samples req'd: Yes V No ❑ Mud log req'd: Yes PI No❑ Directional svy req'd: Yes No ❑ No ❑ � — �� t H measures: Yes A` Ls oa ps i9 - -t (; s J -- 7 t i � g o' P ! & Cy ck , / `f A PPROVED BY THE COMMISSION DATE: A'� /" fQ , COMMISSIONER fir ORIGINAL ' /we Form 10 - 401 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate RECEIVED JAN 1 9 2010 Brooks Range Petroleum Alaska Oil & Gos Corn Commission Anchorage a subsidiary ofAVCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339-9965* Fax (907) 339 -9961 January 19, 2010 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Modification for Permit to Drill: North Shore #3 PTD # 208 -204 API # 50- 029 - 234 - 100 -000 Dear Mr. Seamount, Brooks Range Petroleum hereby submits a modification to previously - approved Permit to Drill # 208 -204 for our proposed North Shore #3 well. The principal change from the previously submitted drilling program is that Brooks Range plans to drill an additional exploratory pilot hole, called NS3 PB1, prior to commencing the previously approved North Shore #3 drilling procedure. Brooks Range Petroleum is currently planning the following sequence of operations: The North Shore #3 PB1 (NS3 PB1), a slightly deviated exploratory grassroots well, will be drilled to evaluate reservoir and rock properties in the Sag River and Ivishak formations. 9 -5/8" surface casing will be set at 2660' MD/2648' TVD. The reservoir and rock properties will be evaluated with the use of real -time open -hole logs and rotary sidewall coring. The NS3 PB1 will be plugged back to approximately 8820' MD/8566' TVD. The North Shore #3, a sidetrack well, will kick off at 8820'MD and will be directionally drilled through the Sag River and the Ivishak formations. The main objective of the well is to evaluate the Sag River and the Ivishak reservoir properties and to prove reserves. 7" production casing will be set in the 8 -1/2" open hole and the pay zone perforated and tested. q • itt 1 �f k s Gr� At the end of the project the NS3 will then be and the wellhead will be left attached. Please find attached additional information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Updated general drilling program 2) Updated Drilling Time versus Depth Plot 1 • 3) Proposed Wellbore Diagram 4) Directional Drilling Program If you have any questions or require additional information, please contact me at (907) 339 -9965 or Natasha Sachivichik at (907) 575 -7156. Sincerely, OKS RANG PETROLEUM CORPORATION s. Bart Armfield Vice President - Operations enclosures cc: Natasha Sachivichik - Fairweather E &P 2 • Brooks Range Petroleum North Shore # 3 Exploration Test Gwydyr Bay Area General Well Plan North Shore 3 P81 1. Set 20" (34" sleeve) Insulated conductor at a minimum depth of 80' below ground level. The RKB on N -16E is 33' 1 1 /2 ". Install 8' diameter by 6' deep corrugated pipe cellar. 2. Install Nabors' 20" landing ring. 3. MIRU Nabors Alaska Rig 16E. 4. Nipple up 20" diverter riser and 21 1 4" Hydril MSP 2000 psi diverter system. Install 16" diverter line. 5. Take on premixed spud mud for the surface hole. 6. Notify AOGCC of planned diverter test so that they can witness the test. Function test diverter system and conduct diverter operation drills with each drilling crew. 7. Drill 12 1/4" hole directionally to 2,660' MD using 9.4 ppg spud mud. Angle will be built to 16 degrees. The base of the permafrost is at -1,873' MD (1,825' TVD). 8. Run 9 5/8 ", 40 ppf, L -80 BTC -M surface casing to TD. Run TAM ported collar at 1000' as a contingency in case of losses. 9. Cement 9 5/8" casing to surface in one stage. 10. ND diverter and NU VetcoGray MB -230 multibowl wellhead. /•2Z /o 5e'` 11. NU 13 5/8" 5K BOP stack and 3 1/16" choke manifold. Test to 250psi. Install wear bushing. 12. RIH with 8.5" BHA. Test 9 5/8" casing to 3000 psi with 9.3 ppg mud for 30 min. 13. Drill out float equipment, cement. Swap the WBM to 9.3 ppg OBM. Drill 20' of new formation (but not more than 50') below 9 5/8" shoe and perform formation integrity test. The OBM weight will be increased gradually to - 9.8 -9.9 ppg (minimum static weight for Kingak stability). 14. Drill 8 1/2" hole NS -3PB1 (East Sag River target) as per directional program to top of the Sag River formation at 10,918' MD/ 10,468' TVD. The hole angle will be gradually built to 26 deg and an azimuth of 27 deg (NE). Test BOP every 7 days. 15. MWD /LDW suite will include GR, Res, DEN, NEU, CMR (ProVision) and Formation Pressure (Stethoscope). • • />'//\\/\ Brooks Range Petroleum 16. Make a wiper trip to prepare for wireline operations. 17. Run MSCT (Rotary sidewall coring tool) to -10,757' MD. Take 10 rotary core samples from the Sag River formation. 18. Plug back the pilot hole with cement to TOC 8,820' MD. Cement plug intervals will be determined based on the open -hole logs. At this point the North Shore -3PB1 will be considered Plugged and Abandoned. North Shore 3 19. RIH with 8.5" BHA to 8,820' MD. 20. Kick off from the cement plug at 8,820' MD to initiate drilling of the North Shore -3 sidetrack following the directional plan starting with 9.6 ppg OBM. This section will follow an inclination of 45 deg and an azimuth of 330 deg. The OBM weight will be increased before penetrating Kingak shales to at least 10.8 ppg (based on the Kingak stability study). 21. Drill 8 1/2" hole through the Sag River and the Ivishak formations past OWC to TD of 11,246' MD/ 10,468'TVD. Test BOPs every 7 days. 22. Plug back the NS -3 pilot hole to 10,866' MD with cement. 23. Perform a clean out run before running casing. 24. Run and cement 7" 26 ppf L -80 BTC -M intermediate casing to 10,866' with 12.5 ppg lead and 500' of 15.8 ppg Class G cement. Calculated top of lead cement is at 7500'.. -°° 25. Freeze - protect the 7"x 9 5/8" annulus by pumping diesel down the annulus to 2200'. 26. Perforate the Sag River pay zone interval. 27. R/D Nabors -16E and move out. 28. RU PowerWell testing equipment and flow test well as per well testing procedure (will be included as Appendix to this program). 29. Pump kill- weight fluid and setting necessary mechanical plugs to provide required barriers for operationally shutting down the well with all downhole production equipment in place. A Sundry Notice (Form 10 -403) will be submitted to AOGCC describing barriers. 30. Close SCSSV and install BPV in tubing hanger mandrel. Install single valve tree. Install VR plugs in all wellhead valves. North Shore #3 Exploration Test Measured Depth vs Days Days from MIRU 1 6 11 16 21 26 31 36 41 0 { 2,000 • 4,000 NS3 PB1 8.5 " hole 10,980' total z d y 6,000 m , y i NS3 8.5 " hole 11,246' total 8,000 OH Log MDT • 10,000 T Casing Testing 12,000 ` North Shore #3 PB1 and 3 Attachment 3 Planned Well Diagram 20" x 34" insulated conductor set @ 80' MD/TVD .A 4 7" x 9 -5/8" annulus freeze - protected with diesel to 2,200' • 7,500' MD / 6,012' ND TOC behind 7" casing 2660' MD/2648' ND 9 -5/8 ", 40 #, L -80, BTC casing 8,820' MD Kickoff Open hole cement Plugs 3 I Open hole cement Plugs 1 & 2 10,866' MD /10,200' TVD 7 ", 26 #, L -80, BTC casing -0, , NS-3 11,247' MD' / 10,468' TVD 8 - 1/2" Open Hole NS3 PB1 10,918' MD' / 10,468' TVD 8 -1/2" Open hole NS 1/14/10 Brooks Range Petroleum Corporation Schlumberger North Shore 3 PB1 (P12) Proposal Report Date: January 7, 2010 Survey 1 DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Vertical Section Azimuth: 20.000° Field: Gwydyr Bay Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure I Slot: North Shore 1 / North Shore 2 •1 st udy TVD Reference Datum: Rotary Table Well: North Shore 3 ' �' TVD Reference Elevation: 48.50 ft relative to MSL Borehole: North Shore 3 PB1 Fe� � Sea Bed/Ground Level Elevation: 16.00 ft relative to MSL UWIIAPI#: 50029xxxxx70 Magnetic Declination: 22.217° Survey Name / Date: North Shore 3 PB1 (P12) / January 7, 2010 Total Field Strength: 57682.932 nT Tort / AHD 1 DDI 1 ERD ratio: 25.922° / 2702.91 ft / 4.864 / 0.258 Magnetic Dip: 80.976° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: February 15, 2010 • Location Lat/Long: N 70.40644075, W 148.95907916 Magnetic Declination Model: BGGM 2009 Location Grid N/E YIX: N 5999339.710 ftUS, E 627854.790 ftUS North Reference: True North Grid Convergence Angle: +0.98065864° Total Corr Mag North -> True North: +22,217° Grid Scale Factor: 0.99991857 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical NS EW Mag 1 Grav Directional Zone Of Zone 0f Comments Inclination Sub -Sea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft ) (deg) (deg) (ft) (ft) _ (ft) (ft) (ft) (deg) (degllllllft ) Index (deg) Alert (ftUS) I (ftUS) RTE 0.00 0.00 27.73 -48.50 0.00 0.00 0.00 0.00 - -- 0.00 0.00 9.02 Alert 5999339.71 627854.79 Base Perm 1873.50 0.00 27.73 1825.00 1873.50 0.00 0.00 0.00 - -- 0.00 0.00 9.02 Alert 5999339.71 627854.79 KOP Cry 1.5/100 1900.00 0.00 27.73 1851.50 1900.00 0.00 0.00 0.00 27.73M 0.00 0.00 9.02 Alert 5999339.71 627854.79 Cry 2.5/100 2000.00 1.50 27.73 1951.49 1999.99 1.30 1.16 0.61 27.73M 1.50 0.29 7.53 Alert 5999340.88 627855.38 2100.00 4.00 27.73 2051.37 2099.87 6.05 5.40 2.84 27.73M 2.50 1.39 5.06 Alert 5999345.16 627857.54 2200.00 6.50 27.73 2150.94 2199.44 15.12 13.50 7.10 HS 2.50 2.00 2.63 Fail 5999353.33 627861.66 2300.00 9.00 27.73 2250.02 2298.52 28.48 25.44 13.37 HS 2.50 2.41 0.86 Fail 5999365.37 627867.73 2400.00 11.50 27.73 2348.41 2396.91 46.11 41.19 21.65 HS 2.50 2.73 2.66 Fail 5999381.26 627875.73 2500.00 14.00 27.73 2445.94 2494.44 67.98 60.72 31.92 HS 2.50 2.98 5.09 Alert 5999400.96 627885.67 End Cry 2585.97 16.15 27.73 2528.95 2577.45 90.13 80.51 42.33 - -- 2.50 3.17 7.22 Alert 5999420.93 627895.7 9 -5/8" Csg 2659.94 16.15 27.73 2600.00 2648.50 110.52 98.72 51.90 - -- 0.00 3.26 7.22 Alert 5999439.30 627904.9 Ugnu C 3805.13 16.15 27.73 3700.00 3748.50 426.15 380.66 200.12 - -- 0.00 3.85 7.22 Alert 5999723.70 628048.35 W Sak D 5991.40 16.15 27.73 5800.00 5848.50 1028.70 918.89 483.09 - -- 0.00 4.23 7.22 Alert 6000266.66 628322.05 HRZ 7969.45 16.15 27.73 7700.00 7748.50 1573.88 1405.87 739.12 - -- 0.00 4.42 7.22 Alert 6000757.90 628569.68 TKUP 8068.36 16.15 27.73 7795.00 7843.50 1601.14 1430.22 751.92 - -- 0.00 4.43 7.22 Alert 6000782.47 628582.06 LCU 8542.05 16.15 27.73 8250.00 8298.50 1731.69 1546.84 813.23 - -- 0.00 4.46 7.22 Alert 6000900.11 628641.36 TMLV 8708.62 16.15 27.73 8410.00 8458.50 1777.60 1587.84 834.79 - -- 0.00 4.47 7.22 Alert 6000941.48 628662.21 Target 8946.14 16.15 27.73 8638.15 8686.65 1843.06 1646.32 865.53 0.81L 0.00 4.49 7.22 Alert 6001000.46 628691.95 9000.00 18.30 27.64 8689.59 8738.09 1858.87 1660.44 872.94 0.72L 4.00 4.55 9.36 Alert 6001014.71 628699.11 9100.00 22.30 27.50 8783.36 8831.86 1893.26 1691.20 888.99 0.59L 4.00 4.64 13.35 6001045.73 628714.64 Cry 4/100 9190.47 25.92 27.42 8865.91 8914.41 1929.90 1723.99 906.03 - -- 4.00 4.72 16.96 6001078.81 628731.11 WellDesign Ver SP 2.1 Bld( users) North Shore 2 \North Shore 3 \North Shore 3 PB1 \North Shore 3 PB1 (P12) Generated 1/19/2010 1:53 PM Page 1 of 2 Measured Azimuth Vertical NS EW Mag /Gray Directional Zone Of Zone Of Comments Depth Inclination True Sub-Sea TVD TVD Section True North True North Tool Face DLS Difficulty Exclusion Exclusion Northing Easting (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg /100ft ) Index (deg) Alert (ftUS) (ftUS) NS3 PB1 East Sag Tgt 10757.17 25.92 27.42 10275.00 10323.50 2609.03 2331.92 1221.40 - -- 0.00 4.85 16.96 6001692.00 629036.00 TD 10918.39 25.92 27.42 10420.00 10468.50 2678.92 2394.48 1253.85 - -- 0.00 4.86 16.96 6001755.10 629067.37 Survey Error Model: SLB ISCWSA version 24 *** 3 -D 95.00% Confidence 2.7955 sigma Surveying Proq: MD From (ft 1 MD To (ft 1 EOU Freq Survey Tool Tvpe Borehole -> Survey 0.00 32.50 1/100.00 SLB_MWD- STD^A1 -Depth Only North Shore 3 PB1 -> North Shore 3 PB1 (P12) 32.50 2659.94 1/100.00 SLB_MWD- STD^ ^1 North Shore 3 PB1 -> North Shore 3 PB1 (P12) 2659.94 10918.39 1/100.00 SLB_MWD- STD^A2 North Shore 3 PB1 -> North Shore 3 PB1 (P12) Legal Description: Northing (Y) (ftUS' Easting (X) (ftUS1 Surface : 1867 FSL 533 FEL S12 T12N R12E UM 5999339.71 627854.79 Target : 3514 FSL 4448 FEL S7 T12N R13E UM 6001000.46 628691.95 • East Sag Tgt : 4199 FSL 4090 FEL S7 T12N R13E UM 6001692.00 629036.00 BHL : 4262 FSL 4057 FEL S7 T12N R13E UM 6001755.10 629067.37 0 WellDesign Ver SP 2.1 Bld( users) North Shore 2 \North Shore 3 \North Shore 3 PB1 \North Shore 3 PB1 (P12) Generated 1/19/2010 1:53 PM Page 2 of 2 Brooks Range Petroleum Corporation Schlumberger North Shore 3 (P19) Proposal Report Date: January 7, 2010 Survey / DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Vertical Section Azimuth: 20.000° Field: Gwydyr Bay Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: North Shore 1 / North Shore 2 TVD Reference Datum: Rotary Table Well: North Shore 3 � b;' StUd� TVD Reference Elevation: 48.50 ft relative to MSL Borehole: North Shore 3 Sea Bed / Ground Level Elevation: 16.00 ft relative to MSL UWIIAPI#: 50029xxxxx00 �� Magnetic Declination: 22.214° Survey Name 1 Date: North Shore 3 P82 (P1) / January 7, 2010 Total Field Strength: 57683.106 nT Tort 1 AHD 1 DDI / ERD ratio: 59.880° / 3256.02 ft / 5.321 / 0.311 Magnetic Dip: 80.976° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: February 17, 2010 Location Lat/Long: N 70.40644075, W 148.95907916 Magnetic Declination Model: BGGM 2009 Location Grid N/E YIX: N 5999339.710 ftUS, E 627854.790 ftUS North Reference: True North Grid Convergence Angle: +0.98065864° Total Corr Mag North -> True North: +22.214° Grid Scale Factor: 0.99991857 Local Coordinates Referenced To: Well Head Measured Azimuth Vertical NS EW Mag / Gray Directional Zone Of Zone Of Comments Inclination Sub-Sea TVD TVD DLS Northing Easting Depth True Section True North True North Tool Face Difficulty Exclusion Exclusion (ft) (deg) (deg) (ft) (ft) I (ft) (ft ) (ft ) (deg) _ (degl100ft ) Index (deg) Alert _ (ftUS) (ftUS) KOP Cry 4/100 8820.35 16.15 27.73 8517.32 8565.82 1808.39 1615.35 849.25 170.00L 0.00 4.48 7.22 Alert 6000969.22 628676.20 8900.00 13.02 25.28 8594.40 8642.90 1828.31 1633.28 858.24 167.62L 4.00 4.57 4.05 Fail 6000987.30 628684.88 Cry 4/100 8920.35 12.23 24.45 8614.25 8662.75 1832.74 1637.31 860.11 52.61L 4.00 4.58 3.24 Fail 6000991.36 628686.68 9000.00 14.38 14.22 8691.77 8740.27 1851.00 1654.58 866.03 42.64L 4.00 4.65 5.59 Alert 6001008.74 628692.31 9100.00 17.53 5.19 8787.92 8836.42 1877.93 1681.64 870.45 33.96L 4.00 4.73 9.28 Alert 6001035.86 628696.26 9200.00 20.97 358.94 8882.32 8930.82 1909.21 1714.54 871.48 28.06L 4.00 4.79 13.15 6001068.77 628696.73 9300.00 24.57 354.41 8974.53 9023.03 1944.66 1753.13 869.12 23.88L 4.00 4.86 17.08 6001107.31 628693.71 9354.17 26.56 352.45 9023.39 9071.89 1965.56 1776.35 866.44 - -- 4.00 4.89 19.22 6001130.48 628690.63 9354.22 26.56 352.45 9023.43 9071.93 1965.58 1776.37 866.43 45.18L 0.00 4.89 19.22 6001130.50 628690.62 9400.00 27.88 349.67 9064.15 9112.65 1983.89 1797.05 863.17 42.71L 4.00 4.91 20.81 6001151.12 628687.01 9500.00 30.93 344.39 9151.27 9199.77 2024.99 1844.82 852.06 38.10L 4.00 4.96 24.38 6001198.69 628675.0 9600.00 34.16 339.99 9235.57 9284.07 2067.40 1895.97 835.53 34.39L 4.00 5.01 28.06 6001249.54 628657.68 9700.00 37.52 336.28 9316.64 9365.14 2110.93 1950.25 813.67 31.39L 4.00 5.06 31.82 6001303.44 628634.90 9800.00 40.98 333.11 9394.08 9442.58 2155.36 2007.39 786.58 28.92L 4.00 5.11 35.62 6001360.10 628606.84 9900.00 44.51 330.35 9467.51 9516.01 2200.48 2067.12 754.40 26.90L 4.00 5.15 39.46 6001419.27 628573.64 End Cry 9913.66 45.00 330.00 9477.21 9525.71 2206.68 2075.47 749.62 - -- 4.00 5.16 39.98 6001427.53 628568.72 Top Jurassic 9945.89 45.00 330.00 9500.00 9548.50 2221.33 2095.20 738.22 - -- 0.00 5.16 39.98 6001447.07 628556.98 Target 10858.06 45.00 330.00 10145.00 10193.50 2635.93 2653.79 415.72 - -- 0.00 5.28 39.98 6002000.00 628225.00 Top Sag River 10858.07 45.00 330.00 10145.01 10193.51 2635.94 2653.80 415.71 - -- 0.00 5.28 39.98 6002000.01 628224.99 7" Csg Pt 10866.54 45.00 330.00 10151.00 10199.50 2639.79 2658.99 412.72 - -- 0.00 5.28 39.98 6002005.15 628221.91 1 Top Shublik 10957.05 45.00 330.00 10215.00 10263.50 2680.93 2714.41 380.72 - -- 0.00 5.29 39.98 6002060.01 628188.97 WellDesign Ver SP 2.1 Bid( users) North Shore 2 \North Shore 3 \North Shore 3 PB2 \North Shore 3 (P19) Generated 1/19/2010 1:53 PM Page 1 of 2 Measured Azimuth Vertical NS EW Mag 1 Gray Directional Zone Of Zone Of Comments Depth Inclination True Sub Sea TVD TVD Section True North True North Tool Face DLS Difficulty Exclusion Exclusion Northing Easting (ft ) (deg) (deg) (ft ) (ft ) (ft ) (ft) (ft ) (deg) (deg /100ft ) Index (deg) _ Alert (ftUS) (ftUS) Top Ivishak 11091.40 45.00 330.00 10310.00 10358.50 2741.99 2796.68 333.22 - -- 0.00 5.30 39.98 6002141.45 628140.07 OWC 11176.26 45.00 330.00 10370.00 10418.50 2780.56 2848.65 303.22 - -- 0.00 5.31 39.98 6002192.89 628109.19 TD 11246.97 45.00 330.00 10420.00 10468.50 2812.70 2891.95 278.22 - -- 0.00 5.32 39.98 6002235.75 628083.45 Survey Error Model: SLB ISCWSA version 24 * ** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prog: MD From ( ft) MD To ( ft l EOU Freq Survey Tool Type Borehole -> Survey 0.00 32.50 1/100.00 SLB_MWD- STDAA1 -Depth Only North Shore 3 PB1 -> North Shore 3 PB1 (P12) 32.50 2659.94 1/100.00 SLB_MWD -STDA 1 North Shore 3 PB1 -> North Shore 3 PB1 (P12) 2659.94 8820.35 1/100.00 SLB_MWD- STDAA2 North Shore 3 PB1 -> North Shore 3 PB1 (P12) 8820.35 10866.54 1/100.00 SLB North Shore 3 PB2 -> North Shore 3 (P19) 10866.54 11246.97 1/100.00 SLB North Shore 3 PB2 -> North Shore 3 (P19) • Legal Description: Northing (Y) (ftUSl Eastinq (X) fftUS1 Surface : 1867 FSL 533 FEL S12 T12N R12E UM 5999339.71 627854.79 West Sag Target : 4521 FSL 117 FEL S12 T12N R12E UM 6002000.00 628225.00 BHL : 4759 FSL 255 FEL S12 T12N R12E UM 6002235.75 628083.45 • 1 WellDesign Ver SP 2.1 Bld( users) North Shore 2 \North Shore 3 \North Shore 3 PB2 \North Shore 3 (P19) Generated 1/19/2010 1:53 PM Page 2 of 2 1 ~\'\. • • Brooks Range Petroleum Corporation Schlumberger WELL D STRUCTURE NS3 PB1 (P12) NS3 (P19) I FIEL Gwydyr Bay I North Shore 1 Magnetic Parameters Surface Location 58027 Alaska State Planes, Zone 04, US Feel Mia�oui Model: BEGIN 2009 Dip. 60978° Date. February 11,2010 Lat'. N702423.187 Northing. 5999339.71 MIS GGM Cone ♦0.9840.980658W Slot. scell NoM Shore ND Ref Rotary Table (48 5011 above MSL) Meg Dec: 422214 ES: 576831 nT Lob W148 57 32 685 Dearing: 027054.7911US Scale Fact. 0.9999185894 Plan North Shore 3 (P18) Stay Date'. January 07, 2010 -1500 0 1500 3000 0 0 RTE 1500 1500 KOP Cry ry 1.5110 511 ....4.0.7"'M .._.._.._.._.._. _.._.._.._.._.._.._.._.._ ._.._.._.._.._.._.._.._... Cry 2.5/100 En g-STd E g 3000 a 3000 _.._.._.._.._.. 1551.. _.._.._..r.. _.. gnu C._.._.. 4500 4500 0 7. c ( 0 0 4 .._.._.._.._ ._.._.._.._. r .._.._.._.._.._. CI) . 6000 ' 'sraliB. _.._.._.._.._.._.._.._.._ ._.._.._.._.._.._.._.._.. 6000 .. .. 7500 7500 _. r.. - .4- _..x..1551. :_.. _.._.._4 ` itji 1 551. : _.._..�.._... • KOP Cry 4/100 Cry 4/100 Cry 4/100 9000 \ 9000 Top Jurassic End Cry r Csg Pt Target _.._.._.._.._.._.._.._. �' : _.._.._.._.._.. 10500 5555_.. 1551 ._.._.._.._.._.._.._.._... 10500 NsJPgi'EasiSagYgt TD TD North Shore 3 (P19) North Shore 3 PB1 (P12) -1500 0 1500 3000 Vertical Section (ft) Azim = 20 °, Scale = 1(in):1500(ft) Origin = 0 NI-S, 0 E / -V /)/\/\ • • Brooks Range Petroleum Corporation Schlumberger WELL ELD STRUCTURE NS3 PB1 (P12) / NS3 (P19) I FI Gwydyr Bay North Shore 1 Magnetic Parameters Surface Location NAD27 Alaska Slate Planes. Zone 04, US Feet I MIe000aneoua Model: BGGM 2009 DID 80478" a 99 February 17. 2010 Cat 570 Northing. 5933971 SUS Grid Cone •0.90065864" Sldf North Store 2 SOD Ref: Rotary Table (48.50 above MSL) Meg Dec +22214• FS. 57683.1 nr Lon W148 57 32.685 Coating 827854.79 SUS Scale Facl'. 0.9999185694 Plan: Nato Shore 3)718) Srvy Dale: January 02, 2010 -400 0 400 800 1200 1600 TD •rah Shire 3 (P19) 2800 • 2800 4 Q • 7" Csg Pt 2400 D 3 7 61 (P12) 2400 • NS3 PB1 East Sag Tg, N 11� 2000 End Cry 2000 ,, n A A • Z Cry 4/100 Cry 41100 $ 1600 KOP Cry 4/100 3 1600 O O V C I I a) 07 U 1200 • •• 1200 V V V 800 800 • 400 400 9-5/8" Cs, End Cry Cry 2.5/100 0 KOP Cry 1.5/100 0 RTE -400 0 400 800 1200 1600 «< W Scale = 1(in):400(ft) E »> Brooks // Range Petroleum Corporation $bI"mb c erger WELL North Shore 3 I FIELD Gwydyr Bay I STRUCTURE North Shore 1 Magnetic Parameter: Surface Location NAD21 Alaska Stall Plans Zone 04, US Feet Miscellaneous mode) BGGM 2009 80978° ES February 11, 2010 I Lot. N702423.187 Northing. 59993371RUB + Cow +0 Slot North Snore 2 NO Ref Rota, Table ft above MSL) Mao Dec. +22 214' FS' 518831 nT Lon: W148 57 32 685 Easting. 627854 79 SUS Scale rry b Fact. 0 9999185694 Plan. North Snore 3 (P19) Srvy Date: January 07 , 2010 -10000 -7500 -5000 -2500 0 2500 5000 7500 I I I I I I I I � 0 0 0 o �� \ Sak River 1A (P6) po o p 9' p 1 L 0 o p- • 6 'p G 0 „ . pOT o *00,” o 10000 - 11000 ND 10000 N Sop 10 44: 45 ND III. A % mo o , / © p ro Sak River 1 'Poo o o ° A 4 o �0 �o + � A ° 0 Z 7500 -' '4- / Lp 7500 o Gwydyr Bay St Unit 1 Lc) o N 1 5000 - 1 000 N1• 5000 I I . " 6 , p I- a North Shore 3 (P19) • cn Noo a o ��° Cl) ° O 6$ O v s \� -0 North Shore 3 PB1 (P12) 2500 v 2500 - , 6+. ?080°092- 61 (T 4 � ��1 60 � 40 � 0 O 30 �,© a O f o 0 0 o O t. o � ._� - A o North Shor 1 +___ 0 S North Sho e 1 �,. 1p33Z0 rpip I I I I I I I o o° y o o I -10000 -7500 -5000 -2500 0 2500 5000 , ° 7500 «< W Scale = 1(in):2500(ft) E »> • • ANTICOLLISION SUMMARY REPORT Client: Brooks Range Slot: North Shore 2 Field: Gwydyr Bay Well: North Shore 3 Structure: North Shore 1 Borehole: North Shore 3 PB1 Subject Trajectory: North Shore 3 PB1 (P12) (DEF PLN) Rpt Date: January 19, 2010 Analysis Method: Normal Plane Depth Interval: Every 10.00ft MD EOU Type: Oriented EOU used. Min Pts: All local minima indicated. ProbColMax: 1:25959 Mag Model: BGGM 2009 Offset Trajectory Sep. Allow Sep. Subject Trajectory Separation Factor Alert I Status Ct -Ct (ft) Dev. (ft) Fact. MD (ft) 1 TVD (ft) _ Alert 1 Minor 1 Major Gwydyr Bay St Unit 1 (DEF SVY) PASS 8753.11 8750.6011 NIAQ 7.60 7.60 MinPt -O -SF 11 8753.1111 8568.76 72.18 807.60 807.60 MinPt -CtCt 8753.371 8546.251 64.15 907.60 907.60 MinPt -O -ADP 8753.60 8546.351 64.11 1067.60 1067.60 MinPt -O -ADP 8697.36 8475.26 59.39 5202.59 5090.82 MinPt -CtCt 8697.43 8475.2 59.35 5219.16 5106.73 MinPt -O -ADP 9972.76 9602.40 40.66 10416.04 10016.69 MinPt -O -SF North Shore 1 (DEF SW PASS 27.23 22.21 14.67 403.76 403.76 MinPt-CtCt 27.29 22.16 14.14 419.59 419.59 MinPt -0-ADP 31.14 25.24 12.63 539.51 539.51 MinPt -O -SF 1 1 6303.1211 6148.65 62.19 8697.09 8447.43 MinPt -CtCt 6305.44 6144.091 59.52 9079.76 8813.08 MinPt -0-ADP 6329.961 6018.841 30.75 9447.99 9146.03 MinPt -0-ADP 11 -- 6776 - 311 5898.4611 29.351 10425.50 10025.20 MinPts North Shore 1 (DEF SVY) PASS 30.01 27.50 5929.43 3.60 3.60 Surface 27.23 22.21 14.67 403.76 403.76 MinPt -CtCt 27.26 22.1 14.33 413.59 413.59 MinPt -O -ADP 30.81 24.95 12.63 533.52 533.52 MinPt -0-SF 33.27 27.14 12.691 573.44 573.44 MinPt -0-SF 1 1 6303.1211 6148.73 62.22 8697.09 8447.43 MinPt -CtCt 6305.511 6144.1611 59.52 9083.17 8816.24 MinPt -0-ADP 6363.871 6164.5711 48.4911 10397.13 9999.68 MinPts Sak River 1 (DEF SVY) PASS 6828.51 6822.56 2975.56 482.33 482.33 MinPt -CtCt 6828.74 6822.32 2617.26 536.48 536.48 MinPt -0-ADP 7131.24 7104.701 444.8211 1910.21 1910.21 MinPt -0-SF 1 6973.2411 6952.5311 574.15 2514.22 2508.23 MinPts 1 6969.9011 6946.87 508.95 2840.52 2821.95 MinPt -CtCt 6970.1311 6946.7211 499.84 2880.02 2859.89 MinPt -0-ADP 8286.96 8172.591 111.081 8947.50 8687.95 MinPt -0-SF 8276.48 8135.08 89.35 10918.39 10468.50 MinPt -0-SF Sak River 1A (P6) (DEF PLN PASS 6828.51 6822.56 2975.47 482.33 482.33 MinPt -CtCt 6828.74 6822.32 2617.17 536.48 536.48 MinPt -0-ADP 7131.24 7104.601 442.9211 1910.21 1910.21 MinPt -0-SF 6973.241 6952.5211 574.06 2514.22 2508.23 MinPts 1 6969.9011 6946.86 508.82 2840.52 2821.95 MinPt -CtCt 6970.1311 6946.7111 499.69 2880.02 2859.89 MinPt -O -ADP 8713.81 8554.271 83.211 8947.46 8687.91 MinPt -O -SF 8745.59 8558.68 71.12 10918.39 10468.50 MinPt -O -SF Version DO 4.0 (doc40x_100 ) SP 2.1 - ANTICOLLISION SUMMARY REPORT Generated 1/19/2010 3:08 PM Page 1 of 1 li • Schlumberger , TRAVELING CYLINDER PLOT Client: Brooks Ran le S ,NoGo Region EOU's based on: Well: North tore 3 Oriented EOU Dimension Field Gwydyr Bay N Structure: North Shore 1 No Go Region Ant icollision rule used Minor Risk - Separation Factor A Date: January 07, 2010 41 IF 1 North 350 0 10 340 300 20 33 „„,,------ — 280 0 01 30 -- 260 fr---- 320 _____ ' ' 40 240 310 t, 2 2 4 20 200 ' 10 'Am— 50 180 "--, 300 160 /0 \ 60 140 70 280 „„ , i 4/ 60 ' 4 11P .1111111114 ' 80 e 40 air • 270 20 "",f,..T N , • ■ . i 1 rt . 6 '.' i,' 0 North Shore 1 ...,,,, 90 °c4 *P4 bO'C iw i llh ` 64 0, 0 260 c7 c- 4 if a , Mir loo , 240\ 110 o A, A o 4, \ ,, o 4. 120 „„„.--- --,., 210 ----... 150 200 160 190 180 170 Well Ticks Type: MD on North Shore 3 PB1 (P12) Calculation Method: Normal Plane Ring Int cry al: 20.00 ft Azimuth Interval: 10.0 deg Scale: 1 INCH = 100.00 ft • • ANTICOLLISION SUMMARY REPORT n Client: Brooks Range Slot: North Shore 2 Field: Gwydyr Bay Well: North Shore 3 Structure: North Shore 1 Borehole: North Shore 3 Subject Trajectory: North Shore 3 (P19) (DEF PLN) Rpt Date: January 19, 2010 Analysis Method: Normal Plane Depth Interval: Every 10.00ft MD EOU Type: Oriented EOU used. Min Pts: All local minima indicated. ProbColMax: 1:25959 Mag Model: BGGM 2009 Offset Trajectory Sep. Allow Sep. Subject Trajectory Separation Factor Alert Status Ct -Ct (ft) Dev. (ft) Fact. MD (ft) 1 TVD (ft) Alert 1 Minor 1 Major Gwydyr Bay St Unit 1 (DEF SW) PASS 11 8753.1111 8568.76 72.18 807.60 807.60 MinPt -CtCt 8753.371 8546.251 64.15 907.60 907.60 MinPt -O -ADP 8753.601 8546.351 64.11 1067.60 1067.60 MinPt -O -ADP 8697.36 8475.80 59.54 5202.59 5090.82 MinPt -CtCt 8697.43 8475.74 59.50 5219.16 5106.73 MinPt -O -ADP 9322.37 9010.15 45.14 8820.39 8565.86 MinPt -O -SF 9142.3111 8857.211 48.51 9193.65 8924.89 MinPt -O -ADP 1 9141.1711 8858.36 48.90 9219.13 8948.64 MinPt -CtCt 1 9537.8411 9300.3111 60.8611 11246.97 10468.50 MinPts North Shore 1 (DEF SW PASS 27.23 22.21 14.67 403.76 403.76 MinPt-CtCt 27.29 22.1 14.14 419.59 419.59 MinPt -O -ADP 31.14 25.24 12.631 539.51 539.51 MinPt -O -SF 2612.14 2568.401 94.911 3765.27 3710.21 MinPt -O -SF 5254.93 5158.841 84.181 5991.33 5848.43 MinPt -O -SF 1 1 6303.1211 6155.76 65.24 8697.09 8447.43 MinPt-CtCt 6303.3311 6154.9511 64.79 8826.91 8572.12 MinPt -O -ADP 6304.72 6155.90 64.601 8902.69 8645.52 MinPt -O -SF 6316.75 6167.67 64.621 8974.10 8715.14 MinPt -O -SF 6349.28 6044.8411 31.531 9029.45 8768.74 MinPts 6344.47 6041.4611 31.66 9130.23 8865.17 MinPt -O -ADP 11 6344.451 6041.47 31.66 9132.24 8867.07 MinPt -CtCt 6344.381 6041.7711 31.70 9154.31 8887.94 MinPt -O -ADP 11 6344.331 6041.84 31.71 9161.26 8894.49 MinPt -CtCt 6360.571 6053.97) 31.3 ( 9249.02 8976.32 MinPts North Shore 1 (DEF SVY) PASS 30.01 27.50 5929.43 3.60 3.60 Surface 27.23 22.21 14.67 403.76 403.76 MinPt -CtCt 27.2 22.16 14.33 413.59 413.59 MinPt -O -ADP 30.81 24.95 12.631 533.52 533.52 MinPt -O -SF 33.27 27.141 12.691 573.44 573.44 MinPt -O -SF 2607.61 2563.951 94.951 3761.36 3706.45 MinPt -O -SF 5250.36 5154.411 84.231 5987.44 5844.69 MinPt -O -SF 1 1 6303.1211 6155.84 65.28 8697.09 8447.43 MinPt -CtCt 6303.3111 6155.0211 64.83 8823.71 8569.05 MinPt -O -ADP 6304.63 6155.881 64.641 8899.40 8642.31 MinPt -O -SF 1 6316.35 6167.361 64.651 8972.86 8713.94 MinPt -O -SF 1 6498.43 6340.371 62.631 9236.82 8965.05 MinPt -O -SF North Shore 3 PB1 (P12) (DEF PLN) FAIL_MAJOR 1 1 0.00 - 137.37 -0.03 8820.00 8565.49 MinPts 0.03 - 82.731 - 0.0511 8830.00 8575.10 MinPt -O -SF 15.8011 - 84.1811 0.20 9059.41 8797.58 MinPt -O -ADP 87.86 -44.24 0.99 9397.69 9110.60 1.00 Exit Major 138.23 -1.20 1.49 9539.98 9233.84 1.50 Exit Minor 485.00 336.47 4.96 10061.07 9629.94 5.00 Exit Alert 881.69 708.99 7.75 10597,40 10009.18 TD Sak River 1 (DEF SVY) PASS 6828.51 6822.56 2975.56 482.33 482.33 MinPt -CtCt 6828.74 6822.3 2617.26 536.48 536.48 MinPt -O -ADP 7131.24 7104.701 444.8211 1910.21 1910.21 MinPt -O -SF 11 6973.2411 6952.5311 574.15 2514.22 2508.23 MinPts Version DO 4.0 (doc40x_100 ) SP 2.1 - ANTICOLLISION SUMMARY REPORT Generated 1/19/2010 3:12 PM Page 1 of 2 • • Offset Trajectory Sep. Allow Sep. Subject Trajectory Separation Factor Alert Status Ct -Ct ft Dev. (ft) Fact. MD (ft) 1 TVD (ft) Alert 1 Minor 1 Major _ 6969.90 6947.46 524.08 2840.52 2821.95 MinPt -CtCt 6970.131 6947.31 514.48 2880.02 2859.89 MinPt -O -ADP 8448.67 8333.171 112.111 8920.37 8662.77 MinPt -O -SF 8106.74 8000.561 117.251 9399.65 9112.34 MinPt -O -SF 1 1 8102.0611 7995.8511 117.15 9472.89 9176.41 MinPts 8102.22 7996.001 117.141 9487.16 9188.73 MinPt -0-SF 8148.19 8040.781 116.471 9697.83 9363.41 MinPt -0-SF 11 7960.9711 7836.081 97.54 11246.97 10468.50 MinPts 7960.97 7836.08 97.54 11246.97 10468.50 TD Sak River 1A (P6) (DEF PLN PASS 6828.51 6822.56 2975.47 482.33 482.33 MinPt -CtCt 6828.74 6822.32 2617.17 536.48 536.48 MinPt -O -ADP 7131.24 7104.6 1 442.9211 1910.21 1910.21 MinPt -O -SF 1 6973.2411 6952.5211 574.06 2514.22 2508.23 MinPts 1 6969.9011 6947.45 523.93 2840.52 2821.95 MinPt -CtCt 6970.1311 6947.311 514.31 2880.02 2859.89 MinPt -O -ADP 8969.11 8797.33 MEM 8920.91 8663.30 MinPt-O-SF 8279.4411 8163.391 109.34 9697.02 9362.77 MinPt -O -ADP 1 8279.131 8163.75 109.99 9715.44 9377.34 MinPt -CtCt 1 8245.5211 8107 9311 91.52 10874.78 10205 33 MinPt -O-ADP 8275.39 8127.3811 85.2811 11246.97 10468.50 MinPt -O -SF Version DO 4.0 (doc40x_100 ) SP 2.1 - ANTICOLLISION SUMMARY REPORT Generated 1/19/2010 3:12 PM Page 2 of 2 S chlumberger TRAVELING CYLINDER PLOT Client: ( Brooks Range NoGo Region EOU's based on: Well: North Shore 3 Oriented EOU Dimension Field Gwydyr Bay N NoGo Region Anticollision rule used: Structure: North Shore 1 Minor Risk - Se.aration Factor Date: .January 07, 2010 j North 350 0 10 340 300 20 330 30 400111, 260 320 ` 240 w 40 220 310 200 50 i 1 180 300 160 60 140 290 ���' rq I�IIV + 120 " 70 i - i ip 4401141 100 Ili 80 A p, 4 0 1, .4 lk , 280 60 % 80 270 ,� ", 0�, 90 " It 0 °"6 ti v �N O 9 p C 260 r ' o o " �" q. N Shore 3 P61 (P12) ie 0 � . � 0 , � ' / ,..o 0- 250 0 ` � 110 W. o ) o titi 0 0 � o� ti 240 o ow 120 \ / / nq �,, 230.,, 130 220 ,--~ .^" 210 /-- ._�..„„ __r_ «.._.�..� 4 150 200 160 190 180 170 Well Ticks Type: .MD on North Shore 3 (P19) Calculation Method: Normal Plane Ring Interval: 120.00 ft Azimuth Interval: 10.0 deg 1 Scale: 1 INCH = 100.00 ft Page 1 of 2 Schwartz, Guy L (DOA) From: Natasha Sachivichik [natasha.sachivichik @fepsi.com] Sent: Friday, January 29, 2010 9:43 AM To: Schwartz, Guy L (DOA) Cc: Bill Penrose Subject: RE: NS #3 Well design Question ( PTD 208 -204) Guy, As discussed on the phone earlier, we would like to modify a 7" casing setting depth in the North Shore -3 well plan. The original plan included drilling an 8.5" hole to 11,247' MD, setting an open -hole cement plug to 10,972', and then setting the 7" casing at 10,972'. The modified plan will be as follows: Drill an 8.5" hole to 11,247' MD, run and set the 7" casing all the way to TD, having a float collar at 10,972' MD. This way the lower part of the well will have solid cement from 10,972' to 11,247' MD inside and outside the 7" casing. Thanks again for your suggestions, Natasha Sacl�%v%ct1%i� Senior Drilling Engineer Fairweather E &P Services, Inc. 310 K Street, Suite 700 Anchorage, Alaska 99501 Direct: 907 - 264 -6116 Cell: 907 - 575 -7156 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz @alaska.gov] Sent: Thursday, January 28, 2010 8:25 AM To: Natasha Sachivichik Subject: RE: NS #3 Well design Question ( PTD 208 -204) Natasha, Thanks. Your plan meets plugging and isolation requirements as laid out below.... as per our conversation you would also meet plugging requirements if you run casing to bottom and cement the 7" across both Sag and Ivishak. . Also, a possibility would be to leave the float collar high (between Sag and lvishak) to leave solid cement in the 7" casing. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 2/1/2010 Page 2 of 2 1 From: Natasha Sachivichik [ mailto :natasha.sachivichik @fepsi.com] Sent: Thursday, January 28, 2010 7:41 AM To: Schwartz, Guy L (DOA); Bill Penrose Subject: RE: NS #3 Well design Question ( PTD 208 -204) Guy, The reason for setting the 7 "casing at this depth is the following. The 8 -1/2" open -hole will be drilled to 11247' through the Sag, and the Ivishak's OWC to evaluate both producing zones in one run. After logging, the bottom section of the hole (the lvishak interval) will be plugged back with cement to 10972'. Then, the 7" casing will be set at 10972' (across the Sag River top). And later, we will drill a horizontal production hole from just below the 7" casing shoe. I hope I answered your question. This is our current plan. Please let us know what do you think about that. Thanks, Natasha. From: Schwartz, Guy L (DOA) [mailto:guy.schwartz @alaska.gov] Sent: Thursday, January 28, 2010 7:31 AM To: Bill Penrose; Natasha Sachivichik Subject: NS #3 Well design Question ( PTD 208 -204) Bill /Natahsa: Looking at the 7" casing shoe depth for NS #3 ... why is the the 7" shoe set so high up in the well? TD is to be 11247' and but the 7" shoe is at 10972' md? I am not sure the cement volume calculations take that into account. Thanks, Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 2/1/2010 • Brooks / Range Petroleum Corporation /J Scldumberger , \ e.(/(( S LL NS3 PB1 (P12) /NS3 PB2 (P1) /NS3 ') Gwydyr Bay l STRUCTURE North Shore 1 1 I MpM9[P a ra rtarn SW151LO 70 N4077 Atelier 0cb Panes, Tar 00, U5 FM M6w14nawf MaleL 60GM ]DW OD 00 070' OM February l7, 701p La N70 N 7310/ Namb1 S9993S.710115 One Con. .010005!1.• 31a Nola SDaa 7 MI RN 170MhTapk HO W X lave MA) Mae Ott •77 7N' f5 5)OOSInT fart W10 37 77 005 Embry 077859 i9 0U9 Scala Fat 0099nBSOW I MA Naa Shen 7(PM Spey Ore Jemmy 072010 -3200 -2400 -1600 -800 0 800 1600 2400 4000 lJ o Sh 3A N °T ��,»�Ir1r1 HhtiAl., 4000 9El • TD /4.119' In End Cry NS3 Sao T1/ 2 NE3 Sap Tat a cm 4/100 ;End Cry Cry 6/100 End Cry 3200 r End ere r •:- ... .. 3200 NrlO SaaTaS Cr/IMO Nan, Shore 34∎24**) TD Cry 01100 EM Cry A Do P< 1 A A Cry i4/100 T^Cap Pt Z Naith Stare 3 PS7 (P12) 2400 r r e >115.[11( �.. 2400 D O Y , 1 4'' ':?' NS3 R1 East SesTa1 co . E �' and Cry II .6f a Dv 41.11 SJ 8 KO 1600 r e e. DRUM 0 .................... 1600 IMP Dv WW P 1 D • v v > 2 0 F %4,204( 600 h • • 3 l0 phi . KOP Cry ' . . 0 r 4. P ,, o 4 o . 0 -3200 -2400 -1600 -800 0 800 1600 2400 «< W Scale = 1(in):800(ft) E »> Alaska Department of Natura1sources Land Administration System. Page 1 of" I 7r Alaska Mapper Land Records /Status Plats Recorder's Search State Cabins Natural Resources Alaska DNR Case Summary File Type: ADL File Number: 390429 8 Printable Case File Summary See Township, Range, Section and Acreage? ® Yes 0 No New Search LAS Menu I Case Abstract I Case Detail I Land Abstract File: ADL 390429 Map for Status Plat Updates As of 01/27/2010 Customer: 000038497 AVCG, LLC LAND DEPARTMENT 510 L STREET, SUITE 601 ANCHORAGE AK 99501 Case Type: 784 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 35 ISSUED Status Date: 04/27/2004 Total Acres: 2560.000 Date Initiated: 10/29/2003 Office of Primary Responsibility: DOG DIV OIL AND GAS Last Transaction Date: 09/11/2009 Case Subtype: BS BEAUFORT SEA Last Transaction: UNITN 1 UNITIZED Meridian: U Township: 012N Range: 012E Section: 01 Section Acres: 640 Search Plats Meridian: U Township: 012N Range: 012E Section: 02 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 11 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 12 Section Acres: 640 Legal Description 03 -12 -2004 * * ** *FINAL LEGAL DESCRIPTION * * * ** TRACT BSA2003 -313 T. 12 N., R. 12 E., UMIAT MERIDIAN, ALASKA. SECTION 1, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 30.19 ACRES; T. 12 N., R. 12 E., TRACT B, UMIAT MERIDIAN, ALASKA. SECTION 1, UNSURVEYED, ALL INCLUDING THE BEDS OF ALL MEANDERABLE WATERBODIES, 609.81 ACRES; SECTION 2, UNSURVEYED, ALL INCLUDING THE BEDS OF ALL MEANDERABLE WATERBODIES, 640.00 ACRES; http: / /dnr.alaska.gov /projects /las/ Case Summary .cfm ?FileType = ADL &FileNumber = 3904... 1/27/2010 i • TRANSMITTAL LETTER CHECKLIST WELL NAME /Y4e >./- ��O,E'�" ' 3 (4. - i Ss k t) PTD# Development Service 17 Exploratory Stratigraphic Test Non - Conventional Well // // FIELD: �X�DG0 2 7T.L ° / POOL: Uiyse/s/oA4s/ Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name (.1/O.G°1f/ -5 0e" ''�J PH) and API number (50- 9 2...?i" /O -770) from records, data and logs acquired for well /I/e2e77./ -Sf ''rte 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 V / SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 ■ WELL PERMIT CHECKLIST ; Field & Pool Well Name: NORTH SHORE 3 Program EXP Well bore seg ❑ PTD #: 2082040 Company BROOKS RANGE�TROLEUM Initial Class/Type EXP / 1 -OIL GeoArea 890 _ Unit 00000 On /Off Shore On Annular Disposal ❑ Administration 1 Permit fee attached NA. 2 Lease number appropriate Yes 3 Unique well name and number _ ... Yes 4 Well located in a definedpool No Exploratory well. 5 Well located proper distance from drilling unit boundary Yes 6 Well located proper distance from other wells Yes 7 Sufficient acreage available in drilling unit Yes 2560 acres. 8 If deviated, is wellbore plat included Yes r 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond # LPM8842179. 11 Permit can be issued without conservation order_ No Spacing exception being prepared. Appr Date 12 Permit can be issued without administrative approval Yes ACS 1/27/2010 13 Can permit be approved before 15 -day wait Yes O 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA . 16 Pre - produced injector: duration of pre production less than 3 months (For service well only) NA 17 -N(onconven. gas conforms to AS3_1,05.030(,1.A),(j,2.A -D) NA 18 Conductor string provided Yes Engineering 19 Surface casing protects all known USDWs NA Based on salinity information from_19S #1.(206 -188), salinities_are > 10000 ppm TDS._ _ 20 CMT vol adequate to circulate on conductor & surf csg Yes 21 CMT vol adequate to tie -in long string to surf csg No 22 CMT will cover all known productive horizons Yes Cased and cemented competion planned.. PB1 wellbore will be cemented off. 23 Casing designs adequate for C, T, B & permafrost Yes '24 Adequate tankage . or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well(s). 25 If are- drill, has a 10 -403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes Proximity analysis performed. Close approaches identified. 27 If diverter required, does it meet regulations Yes Appr Date 28 Drilling fluid program schematic & equip list adequate Yes Maximim likely porous formation pressure -9.0 EMW, although shales may "act" higher. MW 10.2 ppgor GLS 1 /28/2010 29 BOPEs, do they meet regulation Yes higher due to shales. 30 BOPE press rating appropriate; test to (put psig in comments) Yes Conservative MASP 4673 psi. 5000 psi BOP test planned. lir 31 Choke manifold complies w /API RP -53 (May 84) Yes 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable No H2S has not been reported in the area. Rig has sensors and alarms. 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Exploratory well adjacent to Prudhoe Bay Field. Geology 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 1/27/2010 38 Seabed condition survey (if off - shore) NA '39 Contact name /phone for weekly progress reports [exploratory only] - Yes Natasha Sachivichik - 343 -0405. Geologic Engineering . i Spacing exception required for well within 500' of lease boundary. Date: Date � Date Commissioner: Co issioner. �. , - ioner ��� %�� / L Z -/ - /G` • 00 Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, January 05, 2010 10:12 AM To: 'Natasha Sachivichik' Cc: Bill Penrose; Davies, Stephen F (DOA) Subject: North Shore #3 PTD status (PTD 2(204) Natasha and Bill, In response to your letter dated 12/17/09 regarding the status of the PTD for North Shore #3... your question was whether the PTD was still valid. Yes , it is valid for two years from the issue date. PTD 208 -204 was issued on 1/23/09 so will be valid until 1/23/11. Hope this answers your question. Regards, Guy Schwartz Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 1/5/2010 1 Hi Brooks Range Petroleum a subsidiary ofAVCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 December 17, 2009 RECEIVED Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission liEL 1 8 2009 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 Alaska Oil & Gas Cons. Commission A: irl'nrine RE: Application for Permit to Drill: North Shore #3 PTD # 208 -204 issued on 01/23/09 Dear Mr. Seamount, A Permit to Drill for the North Shore # 3 (PTD # 208 -204) was submitted last year and approved on 01/23/09. However, drilling of the well was postponed. Brooks Range Petroleum is planning to drill the North Shore # 3 well during the 2009- 2010 drilling season. Brooks Range Petroleum hereby requests an extension for the above permit to drill. The North Shore # 3 will be drilled with Nabors -16E rig as was planned in the last drilling season. The drilling plan, the bottomhole and surface locations for this well remain unchanged. If you have any questions or require additional information, please contact me at (907) 865 -5840 or Natasha Sachivichik at (907) 575 - 7156. Sincerely, SRO KS RANGE PETROLEUM.CORPORATION Bart Armfield Vice President - Operations enclo sures cc: Natasha Sachivichik - Fairweather 1 • • Page 1 of 3 Schwartz, Guy L (DOA) From: Natasha Sachivichik [natasha.sachivichik @fepsi.com] Sent: Wednesday, October 21, 2009 1:50 PM PTD To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: RE: Another question about the North Shore # 3 Steve, Thank you very much for your e -mail. We were planning to use GR and RES logs on the North Shore # 3 last year as well as this year's, and I wanted to make sure I understand the regulations . Also, you are right, our general well plan is not specifying the kind of logs we are planning to run. The detailed drilling program (developed after the Permit to drill was submitted) included a detailed logging program for all well sections. I will correct the general well plan and make sure that a detailed logging program is included in the document. Thanks & regards, Natasha. Natasha .sach'wizInik Senior Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Direct:907- 343 -0405 Cell: 907 - 575 -7156 From: Davies, Stephen F (DOA) [ mailto:steve.davies @alaska.gov] Sent: Wednesday, October 21, 2009 1:30 PM To Natasha Sachivichik Cc: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: RE: Another question about the North Shore # 3 Natasha, Commission regulation 20 AAC 25.071(a) states: "An operator shall log the portion of the well below the conductor pipe by either a complete electrical log or a complete radio - activity log unless the commission specifies which type of log is to be run." So the language is not completely clear, except that at least one type of log must be recorded from base of conductor pipe to total depth of the well. The approved permit to drill for North Shore 3 (Permit to Drill number 2082040) states in Step 6 of the General Well plan: "MU 12 -1/4" tricone bit, MWD /LWD tools and spud well. Care should be taken when drilling through the base of the permafrost at 1,873' MD (Possible gas hydrates, shallow gas and /or deviation problems). " Step 7 indicates the MWD /LWD tools will be used to drill to surface casing point at about 2,673' MD. But I don't see any place in the approved permit that describes which LWD tools will be used. This is unusual, because the 10/21/2009 • Page 2 of 3 Commission generally requires a detailed logging program for every exploratory wellbore. Please let me know if I've overlooked something. The surface hole section in North Shore 1 was logged with GR and resistivity tools. At the planned surface casing point, the North Shore 3 wellbore will lie about 1,250 feet (roughly 400 meters) northwest of the North Shore 1 wellbore. Geologically speaking, there can be a significant change over a 400 meter distance, especially in fluvial sediments. A GR log will be required below the base of the conductor pipe. Our opinion is that a resistivity log should also be recorded below the base of conductor. If any shallow gas or gas hydrates are encountered while drilling North Shore 3, that resistivity log would be important for identifying the gas or hydrate sources. Such information may be important for future drilling programs. GR and resistivity sensors are often combined within the same LWD tool, so obtaining resistivity data shouldn't be expensive. Please let us know if you have any additional questions. Thanks, Steve Davies Sr. Petroleum Geologist AOGCC 907 - 793 -1224 From: Maunder, Thomas E (DOA) Sent: Tuesday, October 20, 2009 11:10 AM To: Natasha Sachivichik Cc: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Subject: RE: Another question about the North Shore # 3 Natasha, As I mentioned on the phone, Guy is now responsible for the well engineering. I have copied him on this response and included Steve Davies who likely can give you an answer on the shallow logs. Best regards, Tom Maunder, PE AOGCC From: Natasha Sachivichik [ mailto :natasha.sachivichik @fepsi.com] Sent: Monday, October 19, 2009 9:18 AM To: Maunder, Thomas E (DOA) Subject: Another question about the North Shore # 3 Dobra Utra Tom, I am working on the North Shore # 3 well plan and found that we were planning to use GR/ RES LWD surveys in the surface section in the plan last year. I tried to find in the AOGCC regulations if this is a requirement to take Resistivity survey in exploration wells. But, I could not find a section stipulating this requirement. Could you please let me know if there is a regulation on that and if you think it is a good idea to include Res in the drilling program for the top hole. 10/21/2009 y .. • Page 3 of 3 Many thanks, Natasha. From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, October 15, 2009 4:30 PM To: Natasha Sachivichik Subject: RE: Wells drilled with OBM through Kingak and Ivishak Dobra Din( ?) Natasha, I spoke with Bart today and he mentioned this. I will have to see what I can remember about this. Right off nothing comes to mind. Have you talked with the mud people yet? Tom From: Natasha Sachivichik jmailto :natasha.sachivichik @fepsi.com] Sent: Thursday, October 15, 2009 3:26 PM To: Maunder, Thomas E (DOA) Subject: Wells drilled with OBM through Kingak and Ivishak Tom, You may know, I am helping Bart Armfield to plan two well in Gwydyr bay area. Brooks range is planning to use OBM, and in one of the wells drill an 8 -1/2" section through the Kingak, the Sag River and the Ivishak formations. Would you remember of any wells drilled on the North Slope using OBM and going through the same formations in one go. I am trying to evaluate risks associated with the open Kingak, while drilling the Sag and the Ivishak, also I am trying to determine if a 10.4ppg mud weight (required to hold back the Kingak) would not fracture the Sag and the Ivishak. I would greatly appreciate if you could point me to a pad or area, where a similar drilling program took place. Thanks a lot, Natasha. 10/21/2009 • 20e, Davies, Stephen F (DOA) From: Natasha Sachivichik [natasha.sachivichik @fepsi.com] Sent: Wednesday, October 21, 2009 1:50 PM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: RE: Another question about the North Shore # 3 Steve, Thank you very much for your e -mail. We were planning to use GR and RES logs on the North Shore # 3 last year as well as this year's, and 1 wanted to make sure I understand the regulations . Also, you are right, our general well plan is not specifying the kind of logs we are planning to run. The detailed drilling program (developed after the Permit to drill was submitted) included a detailed logging program for all well sections. I will correct the general well plan and make sure that a detailed logging program is included in the document. Thanks & regards, Natasha. Natasl'ia Sacliivkl1i.i. Senior Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Direct:907- 343 -0405 Cell: 907 - 575 -7156 From: Davies, Stephen F (DOA) [ mailto:steve.davies @alaska.gov] Sent: Wednesday, October 21, 2009 1:30 PM To: Natasha Sachivichik Cc: Schwartz, Guy L (DOA); Maunder, Thomas E (DOA) Subject: RE: Another question about the North Shore # 3 Natasha, Commission regulation 20 AAC 25.071(a) states: "An operator shall log the portion of the well below the conductor pipe by either a complete electrical log or a complete radio- activity log unless the commission specifies which type of log is to be run." So the language is not completely clear, except that at least one type of log must be recorded from base of conductor pipe to total depth of the well. The approved permit to drill for North Shore 3 (Permit to Drill number 2082040) states in Step 6 of the General Well plan: "MU 12 -1/4" tricone bit, MWD /LWD tools and spud well. Care should be taken when drilling through the base of the permafrost at ^'1,873' MD (Possible gas hydrates, shallow gas and /or deviation problems). " Step 7 indicates the MWD /LWD tools will be used to drill to surface casing point at about 2,673' MD. But I don't see any place in the approved permit that describes which LWD tools will be used. This is unusual, because the Commission generally requires a detailed logging program for every exploratory wellbore. Please let me know if I've overlooked something. 1 • • The surface hole section in North Shore 1 was logged with GR and resistivity tools. At the planned surface casing point, the North Shore 3 welibore will lie about 1,250 feet (roughly 400 meters) northwest of the North Shore 1 wellbore. Geologically speaking, there can be a significant change over a 400 meter distance, especially in fluvial sediments. A GR log will be required below the base of the conductor pipe. Our opinion is that a resistivity log should also be recorded below the base of conductor. If any shallow gas or gas hydrates are encountered while drilling North Shore 3, that resistivity log would be important for identifying the gas or hydrate sources. Such information may be important for future drilling programs. GR and resistivity sensors are often combined within the same LWD tool, so obtaining resistivity data shouldn't be expensive. Please let us know if you have any additional questions. Thanks, Steve Davies Sr. Petroleum Geologist AOGCC 907 - 793 -1224 From: Maunder, Thomas E (DOA) Sent: Tuesday, October 20, 2009 11:10 AM To: Natasha Sachivichik Cc: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Subject: RE: Another question about the North Shore # 3 Natasha, As I mentioned on the phone, Guy is now responsible for the well engineering. I have copied him on this response and included Steve Davies who likely can give you an answer on the shallow logs. Best regards, Tom Maunder, PE AOGCC From: Natasha Sachivichik [mailto:natasha.sachivichik @fepsi.com] Sent: Monday, October 19, 2009 9:18 AM To: Maunder, Thomas E (DOA) Subject: Another question about the North Shore # 3 Dobra Utra Tom, I am working on the North Shore # 3 well plan and found that we were planning to use GR/ RES LWD surveys in the surface section in the plan last year. I tried to find in the AOGCC regulations if this is a requirement to take Resistivity survey in exploration wells. But, I could not find a section stipulating this requirement. Could you please let me know if there is a regulation on that and if you think it is a good idea to include Res in the drilling program for the top hole. Many thanks, Natasha. From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Thursday, October 15, 2009 4:30 PM 2 • • To: Natasha Sachivichik Subject: RE: Wells drilled with OBM through Kingak and Ivishak Dobra Din( ?) Natasha, I spoke with Bart today and he mentioned this. I will have to see what I can remember about this. Right off nothing comes to mind. Have you talked with the mud people yet? Tom From: Natasha Sachivichik [mailto:natasha.sachivichik @fepsi.com] Sent: Thursday, October 15, 2009 3:26 PM To: Maunder, Thomas E (DOA) Subject: Wells drilled with OBM through Kingak and Ivishak Tom, You may know, I am helping Bart Armfield to plan two well in Gwydyr bay area. Brooks range is planning to use OBM, and in one of the wells drill an 8 -1/2" section through the Kingak, the Sag River and the Ivishak formations. Would you remember of any wells drilled on the North Slope using OBM and going through the same formations in one go. I am trying to evaluate risks associated with the open Kingak, while drilling the Sag and the Ivishak, also I am trying to determine if a 10.4ppg mud weight (required to hold back the Kingak) would not fracture the Sag and the Ivishak. I would greatly appreciate if you could point me to a pad or area, where a similar drilling program took place. Thanks a lot, Natasha. 3 Page 1 of 3 Maunder, Thomas E (DOA) From: Natasha Sachivichik [ natasha .sachivichik @fairweather.com] Sent: Wednesday, January 21, 2009 8:35 AM To: Maunder, Thomas E (DOA) Subject: RE: North Shore #3 Attachments: North Shore 3 (P12) TC plot (2).pdf Dobra Utra Tom, I received the traveling cylinder a long time ago , and I thought I have sent it your way already. The e-mail was still in my "drafts" folder. Here it is. Sorry for the delay. Regards, Natasha sach%v�ch%i� Senior Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Main:907 -258 -3446 Cell: 907 - 575 -7156 From: Maunder,'Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, January 21, 2009 8:25 AM To: Natasha Sachivichik Subject: RE: North Shore #3 "Dobra Utra ", Please excuse my "Russian ". I was wondering if you had received the traveling cylinder information from Schlumberger? I know Brooks is not going to drill the well this season, but 1 understand they would still like the permit issued. Thanks in advance. Tom Maunder, PE AOGCC From: Natasha Sachivichik [mailto: natasha .sachivichik @fairweather.com] Sent: Tuesday, January 06, 2009 11:37 AM To: Maunder, Thomas E (DOA) Subject: RE: North Shore #3 Tom, I asked SLB directional drillers to send me a traveling cylinder presentation or a 3 -D plot of the trajectory. The well NS #1A is a sidetrack well from NS #1. NS #1 is plugged back and the NS #1A is completed and currently suspended. 1 do not have your phone numbers. Could you please e-mail them to me. 1/21/2009 • Page 2 of 3 Thanks, Natasha Sachvk iE Z Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Main:907- 258 -3446 Cell: 907 - 575 -7156 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, January 06, 2009 11:17 AM To: Natasha Sachivichik Subject: RE: North Shore #3 Natasha, On the plan view, it appears that at the surface the wells listed are NS #1 and #1A while at the bottom hole, NS #3 pilot and ultimate are shown. Can you clarify what the well names are? The well trajectories are color coded and it appears that they track each other for some distance. While this information is informative, what I'd really like to see is a traveling cylinder presentation or a 3 -D plot of the trajectories. Call or message with any questions. Tom Maunder, PE AOGCC From: Natasha Sachivichik [mailto:natasha.sachivichik @fairweather.com] Sent: Tuesday, January 06, 2009 11:10 AM To: Maunder, Thomas E (DOA) Subject: RE: North Shore #3 Tom, Attached is the anti - collision diagram for the North Shore # 3. Please let me know if this is what you need. Thanks Natasha sach%v�ch%iZ Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Main:907- 258 -3446 Cell: 907 - 575 -7156 From: Maunder, Thomas E (DOA) [mailto:tom.maunder©alaska.gov] Sent: Monday, January 05, 2009 4:17 PM To: Natasha Sachivichik Cc: Bart Armfield Subject: RE: North Shore #3 Thanks Natasha. Although they ultimately go in opposite directions, there will be some interval that the wells are within 200' of each other. That is the interval of interest that the traveling cylinder should show. Tom 1/21/2009 • f From: Saltmarsh, Arthur C (DOA) a-0 .7D O'--\ Sent: Thursday, January 15, 2009 6:27 AM To: Maunder, Thomas E (DOA); Roby, David S (DOA); Davies, Stephen F (DOA); Williamson, Mary .1 (DOA); Regg, James B (DOA) Subject: FW: BRPC 2099 Exp. Season FYI. Art Saltmarsh Sr. Petroleum Geologist Ak. Oil & Gas Conservation Commission (907)793 -1230 From: Jim Winegarner [mailto:jwinegarner @brpcak.com] Sent: Wednesday, January 14, 2009 2:01 PM To: Byrne, Laurence C (DNR); Schmitz, Steven (DNR); Craig Perham (Craig_Perham @fws.gov); Weaver, Aaron A (DNR); Schultz, Gary (DNR); Lynch, Leon C (DNR); Woolf, Wendy C (DNR); Taylor, Cammy 0 (DNR); Saltmarsh, Arthur C (DOA); Colombie, Jody J (DOA); gordon.brower @north- slope.org; johnny.aiken @north - slope.org; Lloyd (icas.realty @barrow.com) Cc: Weissert, Robin; pthanley @gci.net; Dave Trudgen Subject: BRPC 2099 Exp. Season As of yesterday afternoon, January 13, 2009, Brooks Range Petroleum Corporation has formally cancelled the 2009 exploration drilling and seismic season. The inability to reach a funding compromise with a partner has forced BRPC and its remaining partners to reach this decision. We look forward to working with all of you this year in preparation for the 2010 exploration season and the proposed North Shore development project. We will proceed with the North Shore Unit application, North Shore Development permit applications, and Gwydyr Bay rezone. Thanks, JRW Jim Winegarner, V P of Land Brooks Range Petroleum Corporation 510 L Street, Suite 601 Anchorage, AK 99501 (907) 865 -5804 direct office Page 1 of 2 1110 • Maunder, Thomas E (DOA) From: Natasha Sachivichik [ natasha .sachivichik @fairweather.comj Sent: Tuesday, January 06, 2009 11:02 AM To: Maunder, Thomas E (DOA) Subject: RE: North Shore #3 - AGAIN Tom, We are planning to avoid any pressure communication between the Ivishak and the Sag River. In the worst case scenario the well trajectory is coming as close as 40 ft above the top of the Ivishak in the horizontal production hole. Regards, NAtRSYtR SRCkkEvit,KIR, Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Main:907 -258 -3446 Cell: 907 - 575 -7156 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Tuesday, January 06, 2009 8:17 AM To: Natasha Sachivichik Subject: RE: North Shore #3 - AGAIN Natasha, Is it expected that the Ivishak and Sag River are in pressure communication? Tom From: Natasha Sachivichik [mailto: natasha .sachivichik @fairweather.com] Sent: Monday, January 05, 2009 4:30 PM To: Maunder, Thomas E (DOA) Subject: RE: North Shore #3 - AGAIN Tom, There is no new information to justify 10.7ppg. The pore pressures should be the same. We estimated the maximum expected formation pressure in the Sag River formation as 8.8- 8- 9.0ppg EMW. However, we do not have any reliable pressure value for the Ivishak. I agree, that 10.7 ppg is too high value for this area. Please let me know how can I correct it. Thanks, NRtR ;lia 5RGKvi.c1 Drilling Engineer Fairweather E &P Services, Inc. 1/23/2009 Page 2 of 2 . • 2000 East 88th Ave.. Suite 200 Anchorage, Alaska 99507 Main :907 -258 -3446 Cell: 907 - 575 -7156 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Monday, January 05, 2009 4:13 PM To: Natasha Sachivichik Cc: Bart Armfield Subject: RE: North Shore #3 - AGAIN Natasha, The maximum formation pressure in the 8 -1/2" pilot hole is estimated to be 10.7 EMW. This is —1.2 EMW greater than the formation pressure expected in the NS #1. Is there new information that would justify the higher formation pressure? The planned maximum mud weight for the 6 -1/8" pilot hole listed in the Baroid program is only 9.6 ppg. Could you reconcile the formation pressures and mud weight values? Thanks in advance. Tom Maunder, PE AOGCC Fro . - nder, Thomas E (DOA) Sent: Monday, . _ + 05, 2009 3:56 PM To: Natasha Sachivichik Cc: Bart Armfield Subject: North Shore #3 Natasha, I am reviewing the permit application • - is well. When proximity to other wells is disc _ • it is mentioned that the nearest well is North She - - and that "no interference is expected ". Do you have a traveling , • -r •ath diagram showing th- • -. imity? I would appreciate if you would send that information. Email is acceptable. - or message any questions. To - nder, PE °OGCC 1/23/2009 • • Schlumberger Traveling Cylinder Plot 'IRAVFLLNG CYLINDER PLOT Client: Brooks Range - - NoGo Region EOU's based on: Well North Shore 3 Oriented EOU Dimension Field Gwydyr Bay :N Structure: North Shore 1 NoGo Region Anticollision rule used: Minor Risk - Separation Factor Date: November 19, 2008 ... North 350 0 10 40 340 20 3 30 al 140 32 % 1 ji • 120: 11 310 st.,,,,,448 50 A a k Ai k 411011101 '100 a 300 60 4 iji 80 .._ ii:,, ti, 4 , \ _i . '� 290 j 60 70 X 4 0 \ 280 `� \ 80 20 WM. umi ii,..... I , MUIR I i +t. . 270 ° n „� -'��� � . � ilim lirr n s illpipliPPO I c?.., 4, ,-.I.__ a wi� 4 North Shore 260 t o i � ' P ,, 1 \ ° � ) ' .0 irobai im o� \ / North Shore 1 WI �� ` o° 110 404 ► 250 "go �� ��� ' � 8111 • - ti 1 � � ° o North Shore 3 P81 240 171441,4% ► 11� $ 4 120 ni mis 230 14 44,,ismainuolito# 130 22 4 111 Walla 1111 1 210 150 200 1 190 180 170 Well Ticks Type: MD on North Shore 3 (P12) Calculation Method: Normal Plane Ring Interval: 20.00 ft _ - Azimuth Interval: 10.0 deg Scale: 1 INCH = 50.00 ft BRPC - North Shore 3 Anti - Collision Diagram ••�, BYAre 3 Pilot Hole • •. i X: 628,366' Y: 6,000,114' 1 �.. X: 628,398' NORTH SHORE =1 • Y: 5,999,253' a North Shore 14 1 3 1 • • Page 3 of 3 From: Natasha Sachivichik [mailto:natasha.sachivichik @fairweather.com] Sent: Monday, January 05, 2009 4:14 PM To: Maunder, Thomas E (DOA) Cc: Bart Armfield Subject: RE: North Shore #3 Tom, The wells in question start 30ft apart and go in opposite directions. I asked Isabel Craig( a geologist at Brooks Range) to send me a map with the trajectories of both wells. She is going to sent them tomorrow morning, Thanks, Natasha Sacln%vickif� Drilling Engineer Fairweather E &P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage, Alaska 99507 Main:907- 258 -3446 Cell: 907 575 - 7156 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Monday, January 05, 2009 3:56 PM To: Natasha Sachivichik Cc: Bart Armfield Subject: North Shore #3 Natasha, I am reviewing the permit application for this well. When proximity to other wells is discussed, it is mentioned that the nearest well is North Shore #1 and that "no interference is expected ". Do you have a traveling cylinder path diagram showing the proximity? I would appreciate if you would send that information. Email is acceptable. Call or message with any questions. Tom Maunder, PE AOGCC 1/21/2009 • rI SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 John Darral FAx (907) 276-7542 CEO Brooks Range Petroleum 510 L. Street Ste 601 Anchorage AK 99501 Re: Exploratory, North Shore #3 Brooks Range Petroleum Permit No: 208 -204 Surface Location: 1867' FSL, 533' FEL, S12, T12N, R12E, UM Bottomhole Location: 637' FSL, 3296' FEL, Si, T12N, R12E, UM Dear Mr. Darral: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. 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, Daniel T. Seamount, Jr. r 1 Chair DATED this 22 day of January, 2009 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. O to � STATE OF ALASKA ` ,ro-of u ALJ .A OIL AND GAS CONSERVATION COMMIS 1ON PERMIT TO DRILL kt 20 AAC 25.005 . la. Type of Work: 1 b. Current Well Class: Exploratory 0 Development Oil ❑ lc. Specify if well is proposed for: Drill Ei Redrill ❑ Stratigraphic Test ❑ Service ❑ Development Gas ❑ Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ❑ Multiple Zone ❑ Single Zone CI Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket iti Single Well ❑ 11. Well Name and Number: Brooks Range Petroleum Corporation Bond No. LPM 8842179 North Shore # 3 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 510 L Street, Suit 601, Anchorage, AK, 99501 MD: 14,506' TVD: 10,203' 4a. Location of Well (Governmental Section): 7. Property Designation: Exploratory Surface: 1867'FSL 533'FEL S12 T12N - R12E UM ADL.O3 *1 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 4350'FSL 4619'FEL S7 T12N - R13E UM LAS24983 1/31/2009 Total Depth: 9. Acres in Property: 14. Distance to Nearest 63T FSL 3296'FEL 51 T12N - R12E UM 2560 Property: 518' 4b. Location of Well (State Base Plane Coordinates): ASP N27 10. KB Elevation 15. Distance to Nearest Well Surface: x- 627855 y- 5,999,399 Zone- 4 (Height above GL): 31.15 feet V1Gtlaia -Paoli 1.5 miles 16. Deviated wells: Kickoff depth: 11028 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 107 degrees Downhole: 5824 psi Surface: 4673 psi 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) 20" 80' 80' 80' Grouted to surface 12 -1/4" 9 -5/8" 40# L -80 BTC -M 2671 0 0 2673' 2648' 1754 cf to surf. + 150% XS 8 5/8" 7" 26# L -80 BTC -M 10972 0 0 10972 10199 587 cf to 7500MD +30 %XS 61/8" S At NQ •�. ‘••)N W t ' 1 . ) . 1 V IOC) CS open -hole completion 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 Sk❑✓ h Drilling Progr4 Time v. Depth PIC] Shallow Hazard Analysis Property Plat ig Diverter Sk[]✓ h Seabed Rep❑ Drilling Fluid PrograE 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Natasha Sachivichik 343 - 0405 Sok T 0 rir ,.L Printed Name / ".if .. - . Titl - 600 AgeelDMISTIMM Signature T �� Phone 865 -5840 D ate , 2 4/ 6 /0 ? Commission Use Only Permit to Drill API Number: Permit proval See cover letter for other Number: ap�ae241 50- pa y /00000 Date: i. a 001 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:Fr Other: g)00 r' f'C.)._V--... °A— Samples req'd: Yes4 No ❑ Mud log req'd: Yes No❑ V----21--- H2S measures: YesM No ❑ Directional svy req'd: Yes E No D. soo PS. v"t.��.�., t -.4�rJ / APPROVED BY MMI DA COMMISSIONER Form 10 -401 Revised 12/2005 ; i r 4 P I'° I Ap L Submit in Duplicate 1 -7 '_ \iii` Brooks Range Petroleum a subsidiary ofAVCG, LLC 510 L Street, Suite 601 * Anchorage, AK 99501 * Phone (907) 339 -9965 * Fax (907) 339 -9961 December 12, 2008 Mr. Dan Seamount, Chair - Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: North Shore #3 p/� Dear w . 'eamount, Brooks Range Petroleum hereby applies for a Permit to Drill a new oil exploration well from an ice pad on the shore of Gwydyr Bay north of Prudhoe Bay Field's S -Pad on the r North Slope. Brooks Range plans to use Nabors Rig #16 -E to drill its North Shore #3 well. The North Shore #3 will consist of 20" insulated conductor pipe, 9 5/8" surface casing and 7" intermediate casing set in the Sag River top. After setting and cementing the 7" casing the plan is to drill a pilot hole and core the Sag River formation, then the Shublik and Ivishak will be drilled to 11,394' MD. After open hole logging the pilot hole will be plugged back with cement. To drill the production section the plan is to sidetrack just below the 7" casing shoe and directionally drill a 3600ft horizontal section in the Sag River formation. The North Shore # 3 well will be completed as an open hole completion with 3.5" tubing and a production packer. The well may be production tested for up to several weeks after the rig has moved off the pad and then will be operationally shut down until permanent production facilities are installed. Waste drilling fluids and ground cuttings will be disposed of via the Pad 4 grind and inject facility operated by BP in the Prudhoe Bay Field. 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: 1) Form 10 -401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) Proposed drilling program 4) Drilling Time versus Depth Plot 5) North Shore #3 Proposed Wellbore Diagram 1 6) Pressure Calculations, Drilling Area Risks and Waste Disposal 7) Casing Properties and Design Factors 8) Diagrams and Descriptions of the BOP Equipment to be Used 9) Directional Drilling Program 10) Drilling Fluid Program 11) Cementing Program 12) Brooks Range does not anticipate the presence of H2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. 13) The following are Brooks Range's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Natasha Sachivichik, Drilling Engineer (20 AAC 25.070) (907) 343 -0405 2) Geologic Data and Logs Doug Hastings, VP - Exploration (20 AAC 25.071) (907) 865 -5802 If you have any questions or require additional information, please contact me at (907) 865 -5840 or Natasha Sachivichik at (907) 343 -0405. Sincerely, BROOKS RANGE PETROLEUM CORPORATION ■ �e. Vice President - Operations 1 enclosures cc: Natasha Sachivichik - Fairweather 2 N 35' ICE ROAD NORTH N= 5,999,575.776 ` EV P xx N "Is° N= 5,999,458.205 \ • ` E= 628,106.614 f 76 pR E= 627, 620.634 U t W 500' Q COUNT te • MUD .,�- 13' smR•oc �' 200'"----A "' ; Q i r pry o ro°°w► . ` Y ''+ w Ito �''� EXISTING e --1 CASING NORTH SHORE #1 PROPOSED ''" BASKETS N 5,999,347 NORTH SHORE #3 , , �. � •' ` E 627,833.9 N 5,999,340 85' = _ .∎ Biv 100' rsi E 627,855 UNE 170' 500' ' ` , • ..' l � ' 1 245' 1 eAeoRe 1 , R10 tee ' G - FORAKBR CAMP • ° \-50'1 ...--- BROOKS t 350' eno , TH \C1 � N E� ° Wf4\ t ,, 1 a � �- ®�� 30' : 35' --"\--. \ t • f t N= 5,999,089.796 • E= 628,224.185 N= 5, 998, 972.224 t t E= 627, 738.205 NORTH SHORE #3 (1 PROPOSED ICE PAD LAYOUT /) 35' ICE ROAD r� I ' NABORS ALASKA RIG 1 6E Brooks Range Petroleum Corporation 18NOV08 C JA DELETED EVENT RADIUS 17NOV08 8 .1A MODIFIED 35' ACCESS ICE ROAD LOCATION G '''''' Joe Alston 0 50 100 150 200 250 16NOV08 A JA ISSUED E& P SERVICES, INC. °i'^0 16 October 2008 9 "' Feet . Introduction North Shore # 3 (NS3), a new oil production well, will be drilled on an ice pad on the shore of Gwydyr Bay, north of Prudhoe Bay Field's S -Pad. The well will be drilled in two sections. A pilot hole will be drilled first for exploration purposes followed by a lateral production section. The pilot hole will be drilled from surface with an azimuth of 35° to the northeast to the Miluveach and then will turn to the northwest on a 300° azimuth to total depth (TD) of 11,460'MD (110'TVD below top of Ivishak). The pilot hole will have a maximum inclination of 45 °. The lateral production section will kick off from the Sag River formation. The planned 3,500'MD horizontal section will follow the Sag River to the northeast on a 293° azimuth to TD of 14,507'MD. NS3 will consist of 20" insulated conductor pipe, 9 -5/8" surface casing and 7" intermediate casing set at the top the Sag River. After setting and cementing the 7" casing the plan is to core the Sag River formation and drill the remainder of the pilot hole through the Shublik and Ivishak formations. After the open hole logging, the pilot hole will be plugged back with cement. To drill the production section, the plan is to sidetrack just below the 7" casing shoe and directionally drill to TD. The surface location is: 1867'FSL, 533'FEL, S12, T12N, R12E, UM The bottom hole locations are: Pilot hole: 4690'FSL, 431'FEL, S12, T12N, R12E, UM Lateral section: 637'FSL, 3296'FEL, Sl, T12N, R12E, UM After drilling to TD and evaluating the hole, the well will be completed as an open hole completion with a 3 -1/2" tubing and a production packer in the 7" casing. The well may be production tested for up to several weeks after the rig has moved off the pad. It will then be operationally shut down until permanent production facilities are installed. General Well plan 1. Excavate and install 6' diameter by 6' deep corrugated pipe cellar then set 20" insulated conductor -80' below ground level. 2. Install Nabors 20" landing ring. 3. MIRU Nabors Alaska Rig 16E. 4. Nipple up 20" diverter riser and 21 - Hydril MSP 2,000 psi diverter system. Install 16" diverter line. 5. Notify AOGCC of planned diverter test so that they can witness test. Function test diverter system and conduct diverter operation drills with each drilling crew. 6. MU 12 -1/4" tricone bit, PDM and MWD /LWD tools and spud well. Care should be taken when drilling through the base of the permafrost at - 1,873'MD (Possible gas hydrates, . shallow gas and/or deviation problems). 7. Continue to drill tangent section to approximately 2,673'MD. Use LWD and return samples to pick casing point in competent shale section. POOH and LD BHA. 8. Run 9 -5/8" 40 ppf L -80 BTC -Mod surface casing to TD. Run TAM ported collar at 1,000'. Circulate at least one borehole volume. 9. Perform a single stage cement job using 10.7 ppg Articset Lite lead followed by 15.8 ppg Class G tail slurry. If no cement returns to surface, perform a second stage through the TAM collar. 10. ND diverter and NU VetcoGray MB -230 multibowl wellhead. 11. NU 13 -5/8" 5K BOP stack and 3- 1/16" choke manifold. Test to 250 psi and to 5000 psi. Install wear bushing. 12. PU 8 -1/2" PDC bit, mud motor, MWD/LWD tools and run in borehole to float collar. Test 9 -5/8" casing to 3000 psi with 9.6 ppg mud for 30 min. 13. Drill out float equipment, cement. Swap the WBM to 9.1 ppg OBM. Drill 20' of new formation (but not more than 50') below 9 -5/8" shoe and perform a formation leak -off test. 14. Drill 8-1/2" borehole as per directional program to top of the Sag River formation at 11,080' MD (10,200'TVD). BOP tests required every 7 days. 15. Run and cement 7 ", 26 ppf, L -80 BTC -Mod intermediate casing. Calculated top of cement is at 7,500'MD. 16. Freeze - protect the 7 "x 9 -5/8" annulus by pumping diesel down the annulus to 2,200'MD. 17. RIH with 6 -1/8" BHA and drill the floats, cement and 20' of new formation and perform a leak off test. 18. Run a conventional core BHA and core 60' of the Sag River formation. (Contingency side -wall core run may be required if the conventional core is unsuccessful.) 19. LD the core barrel. PU and RIH with 6 -1/8" drilling BHA. Drill the pilot hole through the Ivishak to TD of 11,460'MD (10,468'TVD). 20. At TD, wireline logs will be run (MDT and possible Dipole Sonic). • 21. Plug back the pilot hole with cement to 10,880'MD (200' inside 7" casing). 22. If decision is made to P &A, proceed with abandonment as per AOGCC regulations. A detailed plugging procedure will be prepared and approval obtained from AOGCC. 23. If decision is made to drill a horizontal production interval, RIH with 6 -1/8" drilling BHA #1 to build initial angle. 24. POOH, LD/MU lateral drilling BHA #2 25. RIH with BHA #2, drill in the Sag River formation to TD of 14,507'MD (10,204'TVD). 26. POOH, circulate and condition the mud. 27. Based on the core analysis if the decision is made to run slotted liner, run 3,750' of 4-1/2", 12.6 #, L -80 slotted liner. Top of liner is planned at 10,930'MD ( -150' inside 7" casing) 28. Run 3 -1/2" tubing completion as per detailed completion procedure (see Section 5.5). Detailed completion procedure will be submitted to AOGCC. 29. ND BOPE and NU and test tree to 5,000 psi. 30. Freeze protect the well. 31. RD Nabors 16E and MO. 32. RU Well testing equipment and flow test as per well testing procedure (see Section 5.6). 33. Pump kill- weight fluid and set necessary mechanical plugs to provide required barriers for operationally shutting down the well with all downhole production equipment in place. A Sundry Notice (Form 403) will be filed with AOGCC describing barriers. 34. Close SSSV and install BPV in tubing hanger mandrel. Install single valve tree. Install VR plugs in all wellhead valves. • • nixer-Mdarinartima I Pint ..... ---. 8 9 10 11 12 23 14 13 1G 17 1 , 80 ND 20 cmductor Ar 1 , 1000 "...• .11 NO MMW=.11.11.111 , If. .10,10.11/09. 2000 -11- garxr1 -morn= :h ; 3' -- LOT, 2 vim) 41 2648 9 000 5A8 I To: Ugr+L C 3.-S II, 4000 ' i - * fIT ---,--- Pr ojec.ea -II- Frac A* LOT 5000 '"'"*"""'• POW POOL .4...Sorisa.4 ..., ... . ......- ........,----70.,••■■■ . WS lis . (01,. Mt " . OA . . al. _ 6000 - Top w _a* D1849' 7000 - - - — Top RZ 774V 1 8000 ' -^" "" - — lc' - - - • a - - - ,p. - - - - . ,......16.0116.11.411.4111.111660...... . .. toPS- I LW .: 291r 2 WPM 9000 • . 1123MIC3 1 -4,-- :. , - 7, • r 101JUU limioyer'''.7...41 _,... . . . '. '' 16/16 ''' ..."1:r3 Sag ft -vet 'MI5 1 oco wi • =LUC hishal.. 110406' ' i00 i 7" 11000 _ . , 1 , S Days vs Depth North Shore # 3 o♦♦j♦ 1000 Drill 12 -1/4" Hble I 2000 ■ 3000 I Rig Move I 4000 5000 (Drill 8-i/2" Hole I I Set 9-5/E" CS 6000 7000 f, 8000 a C 9000 Ing /drillir (Co g pilot hole Pl b ick and Kick of 10000 11000 Run 12000 Compttion 13000 I Sgt 7" CSG 14000 trill 6 -1/8" Hole 15000 16000 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 Days • , • . ..0#-'-%**),.>••-a`k.).-"•%.. North Shore #3 , Brpakz Rangc lafttraltunI Corp =.ration Planned Well Diagram 2:" inst.:laud coedu:tor F.e-. -.•:: .... t i - - - - - . . a SO 'LID W TVD • 1 .... —• • .••••••.:•: '.......... :::: : : : • .... 7' x 9-5 S' .7 1:11.1: %I : freeza-protected ,-• 'Mill diesel to a --:. 00 MD ... - - - • ....':., • - • :::.•:::: • i.c..; :-...• • .• - • •,. :...„ .•....::.. 3-117", 9.30. L-EC. EL robing . a i -.:, ... . . :'..::;•,1:: 9-541 L-80, MC csg la 2,673 6,1120,649'11, I v-r• -II TOC(cak) OL-L-7,500' MD 6,012"TVD •••-•_.... 9. sil " 0.- 5,- • ••%';a•::. :'-4'''''s„.•:' '1:•...: ..:.-•, .%-•• ;.. :--; •,.:•., W -,..: •.'; f f..... F 4. 1;rodu.. paccei • 7'. 215P. 1.40. ETC csg „.•:, _ • . . •1 -L.19,112C MD (200' in 7” cig) :ri- 1 L080 Mile10,200' TVD -._ Lateral TD .. .c. -4-1 MD •• IC,204' nrD \ \I 6, 1 V - oper. hz•le -*-----------....,_________„.... r . ....o.e TD a +11.460' MD 10.4159' TVD i ... : = ..3 1 ■ Brooks Range Petroleum Corporation North Shore #3 Casing Properties and Design Verification Casing Performance Properties Internal Collapse Tensile Strenght Design Safety Factor* Size Weight Grade Cnxn Yield Resistance Joint Body TVD MD T B C (in) (lb/ft) (psi) (psi) (1000 Ibs) (ft RKB) (ft RKB) • 9 -5/8" 40# L -80 BTC -M 5750 3090 916 2,600 2,672 10.1 1.2 3 7" 26# L -80 BTC -M 7240 5410 604 10,199 11,080 2.5 1.5 1.15 * Tensile design safety factore are calculated using pipe weight Tess buoyancy. Burst design safety factors are calculated at the surface using zero backup on the outside and MASP on the inside. Collapse design safety factors are calculated at the casing shoe using maximum expected mud weight to be used at the shoe depth on the outside and the entire cased hole evacuated except a gas gradient on the inside. Casing Setting Depth Rationale I 9 -5/8" 2,672' MD/ 2,600' TVD Surface Casing to stablize shallow formations, provide an anchor for the BOP stack and provide shoe strength in the event of kick • 7" 11080' MD/ 10199' TVD Intermediate casing set to cover the unstable Kingak shales and to allow lower mud weight to drill the production interval I 1 11 /V/\ Brooks Range Petroleum Corporation Brooks Range Petroleum Corporations Pressure Calculations, Drilling Area Risks and Waste Disposal North Shore #3 Maximum Anticipated Surface Pressure: 12 -1/4" Hole Section This hole section will be drilled with a diverter only, no BOPs. While MASP will equal the formation pore pressure at the surface casing shoe depth of 2,673' less a gas gradient to the surface, it cannot be shut in, only diverted. Offsetting well information indicates that the pore pressure at 2,600' TD will be a maximum of 9.5 ppg (or 0.494 psi /ft). Calculations for MASP (12 -1/4" hole) = 2,600' (0.494 -0.11) = 998.4 psi 8 -1/2" Hole Section The maximum anticipated pressure (MASP) for the 8 -1/2" hole section in this sidetrack will be the formation pore pressure (less a full gas column to the surface) at 11,394' MD/ 10469' TVD. Offsetting well information indicates that pore pressure at TVD will be a maximum of 10.7ppg (or 0.5564 psi /ft). Calculations: 8 -1/2" hole section MASP (pore pressure) = (10469 ft) (0.5564 -0.11) = 4673 psi With MASP in the 8 -1/2" open hole section is expected to be 4673 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to this one is North Shore #1 located approximately 50 feet away but directional simulation indicates there is no anticipated interference expected between wellbores. M /V Brooks Range Petroleum Corporation Drilling Area Risks: 1. There is a remote possibility of encountering gas hydrates while drilling the surface hole. If it does occur, they will be treated with extra care, slow down, slightly increase mud weight and slowly POH. 2. There is little risk of encountering H2S in the area as there are no indications that any of the offsetting wells encountered any. However, as a precaution, the rig and mud logging units will have functioning H2S detectors. Disposal of Muds and Cuttings: All drill cuttings and waste drilling fluid will be disposed in BP's grind and inject facility at Prudhoe Bay. /V\ Brooks Range Petroleum Corporation North Shore #3 Casing Design Verification Planned Casing program 9 -5/8" 7" Surface Casing Production Casing Depth (MD) 2,672' 11,080' Depth (TVD) 2,600' 10,199' Hole size 12 -1/4" 8 -1/2" Weight (ppf) 40.00 26.00 Grade L -80 L -80 Connection BTC BTC -M Nominal ID (in) 8.835 6.276 API Casing Design Factors Design factors are essentially "safety factors" that allow the design of safe, reliable casing strings. Each operator may have his own set of design factors based on his experience and the condition of the pipe. Here we use operator's recommended design factors. Design Factors: Tensile Joint Strength: Nt = 1.8 Collapse (from external pressure): Nc= 1.125 Burst (from internal pressure): Ni = 1.1 The pore pressures and fracture gradients used here are those derived from studies of offsetting wells North Shore #1 and Sak River #1. • /W Brooks Range Petroleum Corporation Design Factor Calculations Burst Requirements Use maximum anticipated surface pressures (MASP) for each casing string. For each casing string MASP is the formation pressure at the next casing point less a gas column to surface. 9-5/8", 40 #, L -80, BTC Surface Casing: MASP at 8 -1/2" hole section TD of 10,469': MASP = (10199') ((10.7 ppg x 0.052) -0.11 psi /ft) = 4552 psi DFb = burst strength / burst stress = 5,750 psi / 4552 psi = 1.26 7 ", 26 #, L -80, BTC- MProduction Casing: Maximum burst stress is formation hydrostatic _pressure at TD less a gas column to surface: Burst stress = (10303') ((10.7 ppg x 0.052)- 0.11psi /ft) = 4599 psi DFb = burst strength / burst stress = 7240 psi / 4599 psi = 1.57 Collapse Requirements Use an external pressure consisting of the formation pore pressure at the casing shoe and an internal pressure of a gas column to surface. 9-5/8", 40 #, L -80, BTC Surface Casing: External pore pressure = 9.5 x 0.052 x 2,600' = 1284 psi Internal pressure w /gas only = 0.11 x 2,600' = 286 psi Collapse stress = 1284 psi - 286 psi = 998 psi DFc = collapse rating / collapse stress = 3,090 / 998 = 3.09 • 0 Brooks Range Petroleum Corporation 7 ", 26 #, L -80, BTC -M Production Casing: External pore pressure = 10.7 x 0.052 x 10258' = 5705 psi Internal pressure w /gas only = 0.11 x 10258' = 1128 psi Collapse stress = 5705 psi —1128 psi = 4577 psi DFc = collapse rating / collapse stress = 5410psi / 4577 psi = 1.18 Tension Check Use buoyed weight of casing in mud having the expected density when running the pipe. 9-5/8", 40 #, L -80, BTC Surface Casing: Weight in air = 2,624' x 40 lb /ft = 104,960 # Pipe weight in fluid = Pipe wt.(in air) x Buoyancy Factor 104960 # x 0.8548 = 89719 # DFt = body tensile strength / buoyed wt = 916,000 # / 89719 # = 10.2 7 ", 26 #, L -80, BTC -M Production Casing: Weight in air = 11080' x 26 lb /ft = 288,080 # Pipe weight in fluid = Pipe wt. (in air) x Buoyancy Factor Pipe weight in fluid = 288,080 # x 0.8365 = 240,972# DFt = joint tensile strength / buoyed wt = 604000 # / 240972 # = 2.50 e. I o [P , 11 MAX. HEIGHT — 4' -10 1/4" DEPTH OF TOP OF BOP OGOR ROTARY TABLE TOP OF BAIL — 3'-5 1/2 CRANE RAILS S E F 2' 5 3/8 TOP OF ROTARY TABLE • T • 11 1 e 1 I • 1 i t \ / BOTTOM OF I I 1 I BRIDGE CRANE RAILS 6' -10 1/4" — BOTTOM OF BRIDGE CRANE RAILS BOP IN f i FLOW LINE DOWN ' POSITION . I 1 1 �I�I`/�y�`II 31' -1 3/4" 1 �I l - - - 1 - - - - SUBSTRUCTURE FOOTING BEAMS 16" DIVERTER I 1 1 1 CENTERLINE I I (ROTATED FOR CLARITY) 1 1 1 1 1 I a — 6" MATTING BOARDS I f""""' . . �. .a.�....._._ _._ — .. 1 � ,..a»..._ . ....... ......�.... . _. - _ _ EXISTING GRADE • THICKENED ICE PAD i WELL X CENTER , PRELIMINARY , RGPWETMY bESGx Di W1Ggt5 ANSNA REPROWCTIan qV uGF GF 1 TOWN 6 PFRNISST&E 82 IE AuMGRA IN WRNNG a✓ wHaxR AY.RxA. E N b AI Alaska Drilling Inc. • NABORS ALASKA RIG 16E Na6onAlaslm 2525 Street Sage 200 A Imaca pugunJCax., 9 ac7112; e. 99503 -2639 • c DIVERTER ASSEMBLY WITH REFERENCE WELLHEAD LAYOUT P ROJECT NABORS ALASKA RIG 16E TRLE BOP PREVENTER DRILLING POSITION ONERTER urouT DRAMI 8V CHECK Fl AGPRO4ED BY REV ROB CUPPLES ROB CUPPLES WG CSTE D flEV T. �R ESCRIPfICN SCALE OATE MG NO No N/A OCT 2008 SR 1 of 1 e 13 5/8" 5000# WP HYDRIL, TYPE "GK" 1 13 5/8" 5000# WP SCREWED TOP BY 13 5/8" HUBBED BOTTOM 4' -3 1/4" ANNULAR BOP HEIGHT = 51 1/4" J ___ jm.. sr 13 -5/8" 5000# HYDRIL III I II 1 DOUBLE GATE PREVENTOR C -- - - ± - - --D 13 -5/8" 5000# WP 13' -4 1 /4" 4' -6" 1 -- I- -- . L HUBBED TOP AND BOTTOM HEIGHT = 54" C- - - -- - - P J I 1 �- 13 -5/8" 5000# API 1 ' —11 1/2" FLANGED TOP AND BOTTOM 1 1 MUD CROSS T f 2' -6" C - -- 13 -5/8" 5 000# HYDRIL 1 SINGLE GATE P REVENTOR 1 I 13 -5/8" 5000# WP FLANGED TOP AND BOTTOM • HEIGHT = 30" Y $, PRELIMINARY P�Pa��Y O� a99P5 �PM OE�SiC P b FAYi55 � i9 � E OxLY IF IUIHWiEEO Ix WIUIMIG BY INHOaS NASx/. w 16E Y tl' A IIIip/iOO CT Mchara <��NOSka 99503 -2639 I NABORS ALASKA RIG ■ 6E - 90) -2b3 -6000 Pawc NABORS ALASKA RIG I6E 1 BOP STACK CONFIGURATION 98 Sr R BOP PREVENTER O S C C are - 9anwx ar cHe C ansn er cv ROB CUPPLES RUB CUPPLES � P AUG a R I�x 17. E DSCRIPTION WALE DATE DWG NO er N/A 005 2008 DT I of 1 o E s 3" TO VENT MATERIAL SCHEDULE (FLARE LINE) 3" TO ITEM ID DESCRIPTION GAS BUSTER 3" TO 1 4 -1/16' 100001 GATE VALVE SHAKER 2 4 -1/16' 100001 GATE VALVE le 3 4- 1/16'x4 - 1/16'x3 -1/16' 100001 FLANGED TEE 18.5' OAL F to F Ri1J 4 4 -1/16' 10000# x 16.75' OAL FLANGED SPACER SPOOL b. P. CO 5 4 - 1/ 16' x4- 1/76'x4 - 1/16'x4 - 1/16'x3 -1/16' 100001 STUDDED 5 WAY BLOCK 411 6 4 -1/16' 10000# x 23.375' DAL FLANGED SPACER SPOOL le) 7 4- 1 /16'x4- 1/16'03 -1 /16' 10000# STUDDED TEE D 41.1 ' 1 '1k 9 4 -1 /16 100 BL 23.3 5 "N GAL FLANGED SPACER SPOOL id j� ' CI 10 4- 1/16'x4 -7 /16'x3 -1/16' 100001 STUDDED TEE y 11 4 -1/16' 10000# BLIND FLANGE it61 12 3 -1/16' 100001 GATE VALVE ` 40 13 3 -1/16' 100001 x 3' OAL DOUBLE STUDDED SPACER SPOOL _ 14 3 -1/16' 10000# x 2' 1502 ARCS CONNECTION 15 3 -1/16' 10000# GATE VALVE __ .. 3 OM .. 16 3 -1/16' 10000# GATE VALVE 01) \ ��� x �� / 17 3 -1/16' 100001 TRI -FLO HYD. CHOKE _ 18 3 -1/16' 100001 GATE VALVE 19 3 -1/16' 100001 GATE VALVE 4" TO VENT Allf 20 3 -1/16' 100001 TRI -FLO HYD. CHOKE (PANIC LINE) 21 3 -1/16' 10000# GATE VALVE 22 3 -1/16' 10000# GATE VALVE t 23 3 -1/16' 100004 CAMERON 'H -2' 2 MAX. ORIFICE CHOKE 24 3 -1/16' 100001 GATE VALVE - 1D 25 3 -1/16' 10000# STUDDED CROSS ' O 26 3 -1/16' 10000# BLIND FLANGE 27 3 -1/16' 10000# GATE VALVE 28 3 -1/16' 10000# x 18' OAL FLANGED SPACER SPOOL _, ` 1.9 29 3 -1/16' 100001 GATE VALVE 0 30 3 -1/16' 10000# GATE VALVE 31 3 -1/16' 10000# STUDDED CROSS ' / 32 3 -1/16" 10000# GATE VALVE ® © 33 3 -1/16' 10000# x 18' OAL FLANGED SPACER SPOOL III tir 34 3 -1/16' 100004 GATE VALVE 35 3 -1/16' 10000# GATE VALVE 36 3 -1/16" 10000# STUDDED CROSS 37 3-1/16" 10000# GATE VALVE 0 38 3 -1/16' 100001 0 18' OAL FLANGED SPACER SPOOL 11 It 0 iv, © , . h BL ACK HANDLE VALVE: 0 ® PRELIMINARY NORMALLY CL OSED WHITE HANDLE VALVE: o xx's 0050 N mR A a .... a . DAY IE 1110ITISD AN EWING Eft waoRS Auvw 6 r NORMALLY OPEN 25 C S Suite 200 p Anchorage. Alaska 99503 -2639 902- 263.6000 NABORS ALASKA DRILLING PXO J f C ' NABOBS ALASKA DRILLING RIG 16E TRLE CHOKE MANIFOLD g RIG: 16E MAN BY CHECKED BY APPROVED By REV ROB COFFEES AUG AUG 4 INLET wn . B �R . DESCRIPTION SCALE N/A DATE OCT 2008 owc. NO. SAT OF 1 Brooks / Range Petroleum Corporation Schlumberger North Shore 3 PB1 (P6) Proposal' Report Date: November 19, 2008 Survey / DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Vertical Section Azimuth: 35.000° Field: North Slope Brooks Range Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure / Slot: North Shore / North Shore 2 • • I ! Study WD Reference Datum: Rotary Table Well: North Shore 3 WD Reference Elevation: 48.50 ft relative to MSL Borehole: North Shore 3 P81 F bl Sea Bed 1 Ground Level Elevation: 16.00 ft relative to MSL UWIIAPI#: 50029 Magnetic Declination: 22.794° Survey Name 1 Date: North Shore 3 PB1 (P6) / November 19, 2008 Total Field Strength: 57694.729 nT Tort / AHD 1 DDI 1 ERD ratio: 70.360° / 3910.47 ft / 5.479 / 0.374 Magnetic Dip: 80.957° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 15, 2009 Location LatlLong: N 70.40644075, W 148.95907916 Magnetic Declination Model: BGGM 2008 Location Grid N/E Y /X: N 5999339.710 ftUS, E 627854.790 ftUS North Reference: True North Grid Convergence Angle: +0.98065864° Total Corr Mag North - True North: +22.794° Grid Scale Factor: 0.99991857 Local Coordinates Referenced To: Well Head Measured Vertical Mag / Gray Directional Comments Inclination Azimuth Sub TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty (ft ) (deg) (deg) (ft) (ft) I (ft) (ft) I (ft) (deg) (deg/100ft) Index (ftUS) (ftUS) RTE 0.00 0.00 35.02 -48.50 0.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 200.00 0.00 35.02 151.50 200.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 400.00 0.00 35.02 351.50 400.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 600.00 0.00 35.02 551.50 600.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 800.00 0.00 35.02 751.50 800.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 1000.00 0.00 35.02 951.50 1000.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 1200.00 0.00 35.02 1151.50 1200.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 1400.00 0.00 35.02 1351.50 1400.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 1600.00 0.00 35.02 1551.50 1600.00 0.00 0.00 0.00 - -- 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 KOP Cry 1.5/100 1700.00 0.00 35.02 1651.50 1700.00 0.00 0.00 0.00 35.02M 0.00 0.00 5999339.71 627854.79 N 70.40644075 W 148.95907916 Cry 2.5/100 1800.00 1.50 35.02 1751.49 1799.99 1.31 1.07 0.75 35.02M 1.50 0.29 5999340.79 627855.52 N 70.40644368 W 148.959073 Base Perm 1873.58 3.34 35.02 1825.00 1873.50 4.42 3.62 2.53 35.02M 2.50 1.17 5999343.37 627857.26 N 70.40645063 W 148.9590585 2000.00 6.50 35.02 1950.94 1999.44 15.26 12.49 8.76 HS 2.50 2.00 5999352.35 627863.33 N 70.40647488 W 148.95900789 2200.00 11.50 35.02 2148.41 2196.91 46.53 38.11 26.70 HS 2.50 2.73 5999378.27 627880.84 N 70.40654486 W 148.95886178 2400.00 16.50 35.02 2342.41 2390.91 94.90 77.72 54.46 HS 2.50 3.20 5999418.34 627907.91 N 70.40665307 W 148.95863581 End Cry 2551.42 20.29 35.02 2486.07 2534.57 142.67 116.84 81.88 - -- 2.50 3.46 5999457.92 627934.65 N 70.40675993 W 148.95841264 2600.00 20.29 35.02 2531.64 2580.14 159.51 130.63 91.54 - -- 0.00 3.51 5999471.88 627944.08 N 70.40679762 W 148.95833395 9 -5/8" Csg 2672.88 20.29 35.02 2600.00 2648.50 184.78 151.32 106.05 _ - -- 0.00 3.58 5999492.81 627958.22 N 70.40685415 W 148.95821590 2800.00 20.29 35.02 2719.23 2767.73 228.85 187.41 131.34 - -- 0.00 3.67 5999529.33 627982.89 N 70.40695274 W 148.95801001 3000.00 20.29 35.02 2906.83 2955.33 298.19 244.20 171.13 -- 0.00 3.79 5999586.78 628021.70 N 70.40710787 W 148.95768605 3200.00 20.29 35.02 3094.42 3142.92 367.53 300.98 210.93 - -- 0.00 3.88 5999644.23 628060.52 N 70.40726299 W 148.95736209 3400.00 20.29 35.02 3282.02 3330.52 436.87 357.76 250.72 - -- 0.00 3.96 5999701.68 628099.33 N 70.40741811 W 148.95703813 WellDesign Ver SP 2.1 Bld( doc40x_100) North Shore 2 \North Shore 3 \North Shore 3 PB1 \North Shore 3 PB1 (P6) Generated 11/19/2008 8:57 AM Page 1 of 3 Measured I Vertical Mag 1 Gray Directional Comments Inclination Azimuth Sub-Sea TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty (ft ) (deq) (deg) (ft) (ft) (ft) (ft) (ft) (deq) (deg1100ft) Index (ftUS) (ftUS) 3600.00 20.29 35.02 3469.61 3518.11 506.21 414.55 290.52 - -- 0.00 4.02 5999759.13 628138.14 N 70.40757324 W 148.95671416 3800.00 20.29 35.02 3657.21 3705.71 575.55 471.33 330.31 - -- 0.00 4.08 5999816.59 628176.96 N 70.40772836 W 148.95639019 Ugnu C 3845.62 20.29 35.02 3700.00 3748.50 591.37 484.28 339.39 -- 0.00 4.09 5999829.69 628185.81 N 70.40776374 W 148.95631629 4000.00 20.29 35.02 3844.80 3893.30 644.89 528.12 370.10 - -- 0.00 4.13 5999874.04 628215.77 N 70.40788348 W 148.95606621 4200.00 20.29 35.02 4032.40 4080.90 714.23 584.90 409.90 - -- 0.00 4.17 5999931.49 628254.58 N 70.40803860 W 148.95574223 4400.00 20.29 35.02 4219.99 4268.49 783.57 641.68 449.69 - -- 0.00 4.21 5999988.94 628293.40 N 70.40819372 W 148.95541824 4600.00 20.29 35.02 4407.59 4456.09 852.91 698.47 489.49 - -- 0.00 4.25 6000046.39 628332.21 N 70.40834884 W 148.95509425 4800.00 20.29 35.02 4595.19 4643.69 922.25 755.25 529.28 - -- 0.00 4.29 6000103.84 628371.02 N 70.40850396 W 148.95477025 5000.00 20.29 35.02 4782.78 4831.28 991.59 812.03 569.07 - -- 0.00 4.32 6000161.30 628409.84 N 70.40865908 W 148.95444625 5200.00 20.29 35.02 4970.38 5018.88 1060.93 868.82 608.87 - -- 0.00 4.35 6000218.75 628448.65 N 70.40881420 W 148.95412224 5400.00 20.29 35.02 5157.97 5206.47 1130.27 925.60 648.66 - -- 0.00 4.38 6000276.20 628487.46 N 70.40896932 W 148.95379. 5600.00 20.29 35.02 5345.57 5394.07 1199.61 982.39 688.46 - -- 0.00 4.40 6000333.65 628526.28 N 70.40912443 W 148.95347 5800.00 20.29 35.02 5533.16 5581.66 1268.94 1039.17 728.25 - -- 0.00 4.43 6000391.10 628565.09 N 70.40927955 W 148.95315019 6000.00 20.29 35.02 5720.76 5769.26 1338.28 1095.95 768.04 - -- 0.00 4.45 6000448.55 628603.90 N 70.40943467 W 148.95282617 W Sak D 6084.48 20.29 35.02 5800.00 5848.50 1367.57 1119.94 784.85 - -- 0.00 4.46 6000472.82 628620.30 N 70.40950019 W 148.95268929 6200.00 20.29 35.02 5908.35 5956.85 1407.62 1152.74 807.84 - -- 0.00 4.47 6000506.01 628642.72 N 70.40958978 W 148.95250213 6400.00 20.29 35.02 6095.95 6144.45 1476.96 1209.52 847.63 - -- 0.00 4.49 6000563.46 628681.53 N 70.40974490 W 148.95217810 6600.00 20.29 35.02 6283.54 6332.04 1546.30 1266.30 887.43 - -- 0.00 4.51 6000620.91 628720.34 N 70.40990001 W 148.95185406 6800.00 20.29 35.02 6471.14 6519.64 1615.64 1323.09 927.22 - -- 0.00 4.53 6000678.36 628759.16 N 70.41005512 W 148.95153001 7000.00 20.29 35.02 6658.74 6707.24 1684.98 1379.87 967.02 - -- 0.00 4.55 6000735.81 628797.97 N 70.41021024 W 148.95120596 7200.00 20.29 35.02 6846.33 6894.83 1754.32 1436.66 1006.81 - -- 0.00 4.57 6000793.26 628836.78 N 70.41036535 W 148.95088190 7400.00 20.29 35.02 7033.93 7082.43 1823.66 1493.44 1046.60 - -- 0.00 4.59 6000850.72 628875.60 N 70.41052046 W 148.95055784 7600.00 20.29 35.02 7221.52 7270.02 1893.00 1550.22 1086.40 - -- 0.00 4.60 6000908.17 628914.41 N 70.41067557 W 148.95023377 7800.00 20.29 35.02 7409.12 7457.62 1962.34 1607.01 1126.19 - -- 0.00 4.62 6000965.62 628953.22 N 70.41083068 W 148.94990970 8000.00 20.29 35.02 7596.71 7645.21 2031.68 1663.79 1165.99 - -- 0.00 4.63 6001023.07 628992.03 N 70.41098579 W 148.94958563 HRZ 8110.12 20.29 35.02 7700.00 7748.50 2069.86 1695.05 1187.90 -- 0.00 4.64 6001054.70 629013.40 N 70.41107119 W 148.94940719 8200.00 20.29 35.02 7784.31 7832.81 2101.02 1720.57 1205.78 - -- 0.00 4.65 6001080.52 629030.85 N 70.41114090 W 148.94926155 TKUP 8211.40 20.29 35.02 7795.00 7843.50 2104.97 1723.81 1208.05 - -- 0.00 4.65 6001083.80 629033.06 N 70.41114974 W 148.94924307 8400.00 20.29 35.02 7971.90 8020.40 2170.36 1777.36 1245.57 - -- 0.00 4.66 6001137.98 629069.66 N 70.41129601 W 148.948937 8600.00 20.29 35.02 8159.50 8208.00 2239.70 1834.14 1285.37 - -- 0.00 4.68 6001195.43 629108.47 N 70.41145112 W 148.9486133 LCU 8696.49 20.29 35.02 8250.00 8298.50 2273.15 1861.54 1304.57 - -- 0.00 4.68 6001223.14 629127.20 N 70.41152595 W 148.94845701 Cry 4/100 8696.92 20.29 35.02 8250.41 8298.91 2273.30 1861.66 1304.65 113.29L 0.00 4.68 6001223.27 629127.28 N 70.41152628 W 148.94845632 8800.00 19.02 23.33 8347.52 8396.02 2307.63 1891.73 1321.57 102.27L 4.00 4.77 6001253.62 629143.68 N 70.41160842 W 148.94831855 TMLV 8866.00 18.63 15.23 8410.00 8458.50 2328.09 1911.78 1328.60 94.61L 4.00 4.82 6001273.79 629150.36 N 70.41166320 W 148.94826127 9000.00 18.94 358.56 8536.95 8585.45 2365.76 1954.21 1333.68 78.82L 4.00 4.91 6001316.29 629154.72 N 70.41177910 W 148.94821983 9200.00 21.89 337.08 8724.63 8773.13 2411.75 2021.11 1318.32 58.65L 4.00 5.01 6001382.92 629138.22 N 70.41196188 W 148.94834478 9400.00 26.89 321.85 8906.90 8955.40 2444.73 2091.14 1275.79 44.75L 4.00 5.11 6001452.20 629094.50 N 70.41215322 W 148.94869098 9600.00 33.02 311.49 9080.21 9128.71 2464.03 2162.93 1206.92 35.76L 4.00 5.19 6001522.80 629024.42 N 70.41234938 W 148.94925167 9800.00 39.76 304.19 9241.20 9289.70 2469.30 2235.09 1113.05 29.86L 4.00 5.27 6001593.34 628929.33 N 70.41254655 W 148.95001597 End Cry 9948.79 45.00 300.00 9351.09 9399.59 2464.03 2288.18 1028.05 - -- 4.00 5.33 6001644.95 628843.45 N 70.41269160 W 148.95070797 WellDesign Ver SP 2.1 Bld( doc40x_100) North Shore 2 \North Shore 3 \North Shore 3 PB1 \North Shore 3 PB1 (P6) Generated 11/19/2008 8:57 AM Page 2 of 3 Measured Vertical Mag 1 Grav Directional Comments Inclination Azimuth Sub -Sea TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty (ft) (deg) (deg) (ft) (ft) (ft) (ft) I (ft) (deg) (deg/100ft) Index (ftUS) (ftUS) 10000.00 45.00 300.00 9387.30 9435.80 2460.88 2306.28 996.69 - -- 0.00 5.33 6001662.52 628811.79 N 70.41274107 W 148.95096330 Top Jurassic 10159.38 45.00 300.00 9500.00 9548.50 2451.05 2362.63 899.10 - -- 0.00 5.35 6001717.18 628713.25 N 70.41289505 W 148.95175797 10200.00 45.00 300.00 9528.72 9577.22 2448.55 2376.99 874.22 - -- 0.00 5.35 6001731.12 628688.13 N 70.41293429 W 148.95196052 10400.00 45.00 300.00 9670.15 9718.65 2436.22 2447.70 751.75 - -- 0.00 5.38 6001799.71 628564.47 N 70.41312750 W 148.95295775 10498.79 45.00 300.00 9740.00 9788.50 2430.14 2482.63 691.25 - -- 0.00 5.39 6001833.60 628503.39 N 70.41322293 W 148.95345034 10600.00 45.00 300.00 9811.57 9860.07 2423.90 2518.41 629.27 - -- 0.00 5.40 6001868.31 628440.82 N 70.41332070 W 148.95395500 10800.00 45.00 300.00 9952.99 10001.49 2411.57 2589.12 506.80 -- 0.00 5.42 6001936.91 628317.16 N 70.41351390 W 148.95495227 11000.00 45.00 300.00 10094.41 10142.91 2399.25 2659.83 384.32 - -- 0.00 5.44 6002005.51 628193.51 N 70.41370710 W 148.95594956 Top Sag River 11078.62 45.00 300.00 10150.00 10198.50 2394.40 2687.63 336.18 - -- 0.00 5.44 6002032.48 628144.90 N 70.41378304 W 148.95634158 7" Csg Pt 11080.03 45.00 300.00 10151.00 10199.50 2394.32 2688.13 335.31 -- 0.00 5.44 6002032.96 628144.02 N 70.41378440 W 148.956348 Top Shublik 11170.54 45.00 300.00 10215.00 10263.50 2388.74 2720.13 279.89 - -- 0.00 5.45 6002064.00 628088.06 N 70.41387183 W 148.956799 11200.00 45.00 300.00 10235.83 10284.33 2386.92 2730.55 261.85 - -- 0.00 5.46 6002074.11 628069.85 N 70.41390029 W 148.95694687 Top ivishak 11304.89 45.00 300.00 10310.00 10358.50 2380.46 2767.63 197.62 - -- 0.00 5.47 6002110.09 628005.00 N 70.41400160 W 148.95746992 OWC 11389.74 45.00 300.00 10370.00 10418.50 2375.23 2797.63 145.65 - -- 0.00 5.47 6002139.19 627952.53 N 70.41408356 W 148.95789305 11400.00 45.00 300.00 10377.25 10425.75 2374.60 2801.26 139.37 - -- 0.00 5.47 6002142.71 627946.19 N 70.41409347 W 148.95794419 TD 11460.45 45.00 300.00 10420.00 10468.50 2370.87 2822.63 102.35 - -- 0.00 5.48 6002163.44 627908.81 N 70.41415186 W 148.95824566 Survey Error Model: SLB ISCWSA version 24 * ** 3 -D 95.00% Confidence 2.7955 sigma Surveying Prop: MD From (ft 1 MD To (ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 32.50 1/100.00 SLB_MWD- STD -Depth Only North Shore 3 PB1 -> North Shore 3 PB1 (P6) 32.50 11460.45 1/100.00 SLB_MWD -STD North Shore 3 PB1 -> North Shore 3 PB1 (P6) Legal Description: Northing (Y) (ftUS] Easting (X) (ftUS] Surface : 1867 FSL 533 FEL S12 T12N R12E UM 5999339.71 627854.79 : 4350 FSL 4619 FEL S7 T12N R13E UM 6001833.60 628503.39 BHL : 4690 FSL 431 FEL S12 T12N R12E UM 6002163.44 627908.81 • WellDesign Ver SP 2.1 Bld( doc40x 100) North Shore 2 \North Shore 3 \North Shore 3 PB1 \North Shore 3 PB1 (P6) Generated 11/19/2008 8:57 AM Page 3 of 3 • Brooks /i) Range Petroleum Corporation Schlumberger WELL FIELD STRLCNRE North Shore 3 PB1 (P6) I North Slope Brooks Range North Shore Magnet° Parameters Sudan. Location NAD27Alaske State Planes, Zone 04. US Feet Miscebneous Model. BGGM2008 D9'. 80.957• Date: January 15, 2009 Let: N702423.187 Nodhirg. 5999339.71805 Grid Cony .098065884• Slot NoM Shore 2 ND Ref: Rotary Table (48.50 Rabove MSL) Mao Dec .22 794• FS 57694.7 nT Lon: W148 57 32.685 Fasting: 627854 79 JIGS scale Fad: 0 9909185694 Plan. North Shore 3 PB1 (P8) Srvy Date'. November 19, 2008 0 1000 ort6 Shore 3 PB1 (P6) 0 1500 0 RTE 8000 8000 Cry 4/100 O 1500 KOP Cry 1.5/100 Cry 2.5/100 case Senn 9000 9000 End Cry f0 9515" Csg CO End Cry 3000 •.Jurassic 10000 10000 gnu C _.._.._.._.._.._.._. _.._.._.._ .._.._.._...._.._.._.._. 4500 orth Shore 3 PB1 P6) TD O O 0 1000 Vertical Section (ft) Azim = 300 °, Scale = 1(in):1000(ft) Origin = 0 N / -S, 0 E / -V 6000 -"_.._.._.._. ._.._..r.._.._.._.._.._.._.._.. �akro._.._.._ _.._.._.._..�.._.._.._.._.._... 6000 • Ci 7500 7500 Cry 4/100 .._.._.._.._.._.._.. .._.._.._.._.._.._..r.._.._.._. .. }.._.._.._.._.._ 9000 9000 End Cry _.._.._.._.._.._.._.. r.._.._.._.. _.._.._.._.._..r.._.._.._.._.._ .._.. .._.._.._.._.._ _ op7uras c _ .._.._.._.._.._.._.._.._._ Pt L _.. _.._ sttaktr 10500 . rn .,e si re8 psrtp� ::_ ::_::: 10500 • 0 1500 3000 Vertical Section (ft) Azim = 35 °, Scale = 1(in):1500(ft) Origin = 0 N / -S, 0 E / -V • 0 A;//\ Schlumberger Brooks Range Petroleum Corporation WELL STRUCTURE North Shore 3 PB1 (P6) I FIELD North Slope Brooks Range I North Shore Magnetc Parameters Surface LoraEOn NND27 Alaska State Planes, Zone 04, LS Feet I Miscellaneous Model: BGGM 2008 Dip: 80.957' Date. January 15, 2009 Let'. N70 24 23.187 Northing, 5998339.71 525 Gnd Cony: •0.98005864' Slot'. No. Shore 2 ND Ref: Rotary Table (48.5011 above MSL) Mag Deo. +22.764 FS: 578947 nT Lon W14857 32885 East.: 62785.79 ftl15 Scale Fact 0.9989185694 Plan, North Shore 3 Pet (P6) Sroy Date November 19, 2008 I -400 0 400 800 1200 1600 North Shore 3 PB1 (P6) 2800 •• S 4 4 2800 TD 7•• Csg Pt 2400 4 4 9 End Cry 2400 2000 4 4 4 4 4 2000 N Cry 4 / {00 • A A A Z = 1600 4 4 4 4 > 4 1600 0 0 v c II o U 1n 1200 4 1200 • v v v 800 4 800 400 4 4 400 9-5/8" Cs • End Cry 1 P Cry 2.5/100 KOP Cry 1.5/100 0 V _ 0 RTE -400 0 400 800 1200 1600 a« W Scale = 1(in):400(ft) E >>> Brooks Range Petroleum Corporation Schlumberger North Shore 3 (P12) Proposal Report Date: November 19, 2008 Survey 1 DLS Computation Method: Minimum Curvature / Lubinski Client: Brooks Range Vertical Section Azimuth: 295.000° Field: North Slope Brooks Range Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: North Shore / North Shore 2 •I I ty Study TVD Reference Datum: Rotary Table Well: North Shore 3 Fossil) ' TVD Reference Elevation: 48.50 ft relative to MSL Borehole: North Shore 3 Sea Bed / Ground Level Elevation: 16.00 ft relative to MSL UWIIAPI #: 50029 Magnetic Declination: 22.773° Survey Name 1 Date: North Shore 3 (P12) / November 19, 2008 Total Field Strength: 57696.345 nT Tort I AHD 1 DDI I ERD ratio: 151.428° / 7027.00 ft / 6.176 / 0.682 Magnetic Dip: 80.957° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 30, 2009 • Location Lat/Long: N 70.40644075, W 148.95907916 Magnetic Declination Model: BGGM 2008 Location Grid N/E Y!X: N 5999339.710 ftUS, E 627854.790 ftUS North Reference: True North Grid Convergence Angle: +0.98065864° Total Corr Mag North - True North: +22.773° Grid Scale Factor: 0.99991857 Local Coordinates Referenced To: Well Head Measured Vertical Mag 1 Grav Directional Comments Inclination Azimuth Sub -Sea TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty (ft ) (deg) (deg) (ft) (ft) (ft) (ft ) (ft) ( deg) (deg/100ft ) Index (ftUS) (ftUS) Sag Tgt 11078.62 45.00 300.00 10150.00 10198.50 831.16 2687.63 336.18 - -- 0.00 5.44 6002032.48 628144.90 N 70.41378304 W 148.95634158 7" Csg Pt 11080.03 45.00 300.00 10151.00 10199.50 832.16 2688.13 335.31 - -- 0.00 5.44 6002032.96 628144.02 N 70.41378440 W 148.95634863 Cry 18/100 11094.62 45.00 300.00 10161.31 10209.81 842.43 2693.29 326.38 5.41L 0.00 5.45 6002037.96 628135.01 N 70.41379849 W 148.95642137 11100.00 45.96 299.87 10165.09 10213.59 846.25 2695.20 323.06 5.32L 18.00 5.45 6002039.82 628131.65 N 70.41380373 W 148.95644845 11150.00 54.93 298.86 10196.89 10245.39 884.66 2714.07 289.48 4.67L 18.00 5.51 6002058.11 628097.76 N 70.41385527 W 148.95672185 11200.00 63.90 298.04 10222.31 10270.81 927.58 2734.54 251.67 4.26L 18.00 5.56 6002077.93 628059.60 N 70.41391121 W 148.95702977 11250.00 72.88 297.35 10240.70 10289.20 973.97 2756.12 210.55 4.00L 18.00 5.61 6002098.80 628018.12 N 70.41397015 W 148.95736462 90° Pt 11278.85 78.06 296.98 10247.94 10296.44 1001.86 2768.86 185.71 3.91L 18.00 5.64 6002111.11 627993.07 N 70.41400497 W 148.95756689 11300.00 81.86 296.72 10251.62 10300.12 1022.68 2778.27 167.13 3.86L 18.00 5.65 6002120.20 627974.33 N 70.41403066 W 148.95771817 11350.00 90.84 296.11 10254.80 10303.30 1072.51 2800.44 122.49 3.82L 18.00 5.70 6002141.60 627929.32 N 70.41409125 W 148.95808171 11400.00 99.82 295.51 10250.16 10298.66 1122.24 2822.10 77.72 3.88L 18.00 5.74 6002162.49 627884.19 N 70.41415041 W 148.95844 Cry 4/100 11439.99 107.00 295.00 10240.90 10289.40 1161.11 2838.68 42.56 164.67L 18.00 5.77 6002178.47 627848.76 N 70.41419572 W 148.958732 11450.00 106.61 294.89 10238.00 10286.50 1170.69 2842.73 33.87 164.71L 4.00 5.77 6002182.36 627840.00 N 70.41420676 W 148.95880334 11500.00 104.68 294.34 10224.52 10273.02 1218.83 2862.78 -9.90 164.85L 4.00 5.78 6002201.66 627795.90 N 70.41426155 W 148.95915977 11550.00 102.75 293.81 10212.66 10261.16 1267.40 2882.59 -54.25 164.98L 4.00 5.80 6002220.71 627751.23 N 70.41431568 W 148.95952090 11600.00 100.82 293.28 10202.45 10250.95 1316.33 2902.14 -99.11 165.09L 4.00 5.81 6002239.49 627706.03 N 70.41436909 W 148.95988628 End Cry 11614.10 100.28 293.13 10199.86 10248.36 1330.19 2907.61 - 111.86 - -- 4.00 5.82 6002244.73 627693.20 N 70.41438401 W 148.95999007 Cry 6/100 11876.88 100.28 293.13 10152.99 10201.49 1588.61 3009.19 - 349.63 179.39R 0.00 5.85 6002342.23 627453.74 N 70.41466151 W 148.96192639 11900.00 98.89 293.15 10149.14 10197.64 1611.40 3018.15 - 370.59 179.39R 6.00 5.86 6002350.82 627432.63 N 70.41468597 W 148.96209709 11950.00 95.89 293.18 10142.71 10191.21 1660.95 3037.65 - 416.17 179.40R 6.00 5.88 6002369.54 627386.73 N 70.41473925 W 148.96246829 NS3 Sag Tgt 2 11981.48 94.00 293.20 10140.00 10188.50 1692.29 3050.00 - 445.00 176.51 R 6.00 5.89 6002381.39 627357.70 N 70.41477298 W 148.96270304 12000.00 92.89 293.27 10138.89 10187.39 1710.77 3057.29 - 461.99 176.52R 6.00 5.89 6002388.39 627340.59 N 70.41479290 W 148.96284140 WellDesign Ver SP 2.1 Bld( doc40x_100) North Shore 2 \North Shore 3 \North Shore 3 \North Shore 3 (P12) Generated 11/19/2008 9:15 AM Page 1 of 2 I Measured Vertical Meg 1 Gray Directional Comments Inclination Azimuth Sub -Sea TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (deg) (deg/100ft ) Index (ftUS) (ftUS) End Cry 12023.78 91.47 293.35 10137.98 10186.48 1734.53 3066.70 - 483.81 - -- 6.00 5.90 6002397.42 627318.61 N 70.41481859 W 148.96301913 Cry 6/100 12714.17 91.47 293.35 10120.31 10168.81 2424.40 3340.29 - 1117.43 173.99L 0.00 5.99 6002660.11 626680.46 N 70.41556583 W 148.96817935 NS3 Sag Tgt 3 12738.74 90.00 293.20 10120.00 10168.50 2448.96 3350.00 - 1140.00 173.62L 6.00 5.99 6002669.43 626657.72 N 70.41559235 W 148.96836320 12750.00 89.33 293.12 10120.07 10168.57 2460.21 3354.43 - 1150.35 173.62L 6.00 6.00 6002673.68 626647.30 N 70.41560444 W 148.96844750 End Cry 12751.76 89.22 293.11 10120.09 10168.59 2461.97 3355.12 - 1151.97 -- 6.00 6.00 6002674.34 626645.67 N 70.41560633 W 148.96846068 Cry 6/100 13626.02 89.22 293.11 10131.93 10180.43 3335.68 3698.28 - 1955.98 148.57R 0.00 6.09 6003003.67 625835.97 N 70.41654335 W 148.97500923 NS3 Sag Tgt 4 13630.40 89.00 293.25 10132.00 10180.50 3340.05 3700.00 - 1960.00 146.90R 6.00 6.09 6003005.32 625831.92 N 70.41654804 W 148.97504195 End Cry 13640.47 88.49 293.58 10132.22 10180.72 3350.12 3704.00 - 1969.24 - -- 6.00 6.10 6003009.16 625822.61 N 70.41655897 W 148.97511725 TD / 4 -1/2" Lnr 14506.96 88.49 293.58 10155.00 10203.50 4216.05 4050.51 - 2763.11 - -- 0.00 6.18 6003342.00 625023.00 N 70.41750491 W 148.98158377 Survey Error Model: SLB ISCWSA version 24*** 3 -D 95.00% Confidence 2.7955 sigma • Surveying Prop: MD From (ft) MD To (ft) EOU Freq Survey Tool Type Borehole -> Survey 0.00 32.50 1/100.00 SLB_MWD- STD -Depth Only North Shore 3 PB1 -> North Shore 3 PB1 (P6) 32.50 11078.62 1/100.00 SLB_MWD -STD North Shore 3 PB1 -> North Shore 3 PB1 (P6) 11078.62 14506.96 1/100.00 SLB_MWD -STD North Shore 3 -> North Shore 3 (P12) Legal Description: Northing (Y) fftUSl Eastinq (X) fftUSl Surface : 1867 FSL 533 FEL S12 T12N R12E UM 5999339.71 627854.79 NS3 Sag Tgt 2 : 4917 FSL 978 FEL S12 T12N R12E UM 6002381.39 627357.70 TD / 4 -1/2" Lnr / BHL : 637 FSL 3296 FEL S1 T12N R12E UM 6003342.00 625023.00 WellDesign Ver SP 2.1 Bld( doc40x_100) North Shore 2 \North Shore 3 \North Shore 3 \North Shore 3 (P12) Generated 11/19/2008 9:15 AM Page 2 of 2 / Brooks Range Petroleum Corporation Schlumberger North Shore 3 (P12) I FIELD North Slope Brooks Range I STRUCTURE North Shore I Magnetic Parameter St Mace Location Naz a State Planes, Zone 0. et US F e Msupreo s Model: BGGM 2008 080 99.95]• Date. January 30. 2009 let. 9702423.147 Northirg. 5999339.71151S Grid ewer 0.94065864' Slot North Shore T. pat Rotary Tads (48.59rtabow MSL) Ma9 Dec: +22.T)3' S FS: 5]8%.3 nT Lon. W1485]32.685 NA02] E++9'a 62]854.]9016 Scale Fact 0.9999195894 Plan: North Shore 3(P12) Si, Date: November 19. 2008 S 800 1200 1600 2000 2400 2800 3200 3600 4000 Sag Tgt 1 10000 10000 Sag;Tgt 2 N838ag Tgt 4 7" Csg Pt NS3 Sag Tg� 3 End Cry Cry 6/100: CRy 6/100 End Cr, a rth Shore • • :1( P6) End Cry / 4.1/2" Lnr Cry 18/100 Cry 6/100 V Cry 4/100 End Cry • C ..... _.._.._. .._. ._.._.._.. .. .._.. _.._..- .._.._.._ .._.._.._.._.._ _.. _.._.._.._.._.._.._ _.._.._.._.. _.._.._.._.. _.._.._.._ _.. orth Short 3(P72) _ Sag gter ..:.. .. ?.. .. . • 0) co 10400 _.._..!.._.._.._.._. _.._.._..5.._.._.._.._.._.._.._.._.. 5.._.._.._.._.._.._.._.._.. l.._.._.._.._.._.._.._.._.. 5.._.._.._.._.._.._.._.._..5.._.._.._.._.._.._.._.._..!.._.._.._.._.._.._.._.._.. 5.._.._.._.._.._.._.. _.._..3.._.._.._.._.._.._.._.._ 10400 olth Shore 3 PB1 (P6) • 800 1200 1600 2000 2400 2800 3200 3600 4000 Vertical Section (ft) Azim = 295 °, Scale = 1(in):400(ft) Origin = 0 N / -S, 0 E / -V I Brooks Range Petroleum Corporation Schlumherger VVELL North Shore 3 (P12) I FIELD North Slope Brooks Range I STRDDTDRE North Shore Magnetic Parameters Solace Location 5AD27 Alaska State Panes, Zone 04. US Feat I Misceraneeus Model: FIGGM Northing Dip: 80957' Date: January 30.2009 Let N702421187 Nong 5599339.718US end Cony: +0.98265864' Slat N wih Shore 2 TM Ref Rotary Table (48.50 ft above MSL) Mag Dec +22773' FS 57696.3 nT Lon: W148 57 32885 Eastmg 627854.79515 Scale Fad: 0.9999185694 Pan: North Store 3(P12) Spry Date. November 19. 2008 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 • to/ 4 -112• Lnr North Shore 3 (P12), 4000 4000 End Cry NS3 Sag Tgt 4 Cry 6/100 A 3600 3600 A Z End Cry NS3 Sag Tgt 3 Cry 6/100 /K O Co V C_ 3200 ercd.crov 3200 II NS3 Sag Tgt 2 N Cry 6/100 • • End dry Cry 4/1 k North Shore 3 RB1 (P6) V V V 2800 2800 Cry 18/100 - 7" Csg Pt Sag Tgt 2400 2400 -2800 -2400 -2000 -1600 -1200 -800 -400 0 400 «< W Scale = 1(in):400(ft) E »> S Halliburton BAROID Brooks Range Mud Program North Shore #3 Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Dave Soquet Customer Approval Mike Dunn Version No: Date: 1.2 December 6, 2008 North Shore #3 V1.2 1 12/6/08 • • Halliburton BAROID Brooks Range Mud Program North Shore #3 Mud Program General Discussion This exploration well will be drilled on shore in the Gwyder Bay area. A 12 -1/4" surface hole will be drilled, building angle to 19° by the interval TD at 2,672'. 9 -5/8" casing will be run and cemented at this depth. An 8 -1/2" intermediate section will be drilled to 11,014' (top of Sag) where 7" casing will be run and cemented. This section will build to 45° by the casing point. A 6 -1/8" pilot hole will be drilled through the Ivishak to a TD of 11,394'. This portion will be logged then plugged back. The production interval will kick off out of the pilot hole or whipstock out of the casing and a —3,400' horizontal section will be drilled. As a general drilling fluids plan, a conventional gel -based spud mud will be used to drill the surface hole. The primary issues for surface hole will be sufficient viscosity and flowrates for adequate hole cleaning capabilities. A used MOBM will be utilized in the intermediate interval. The mud weight for this interval of the well will range from 9.1 -9.5 ppg at drill -out and the system will be weighted up to 10.2 ppg prior to drilling the HRZ. This same mud should be centrifuged back and used to drill the pilot hole. A separate, cleaner used MOBM system is currently programmed to drill the horizontal section of the wellbore. Minimizing drilling waste, effective use of recycled mud, hole - stability, and hole - cleaning are the primary objectives of this drilling fluid system. Special Considerations 1. Waste minimization is critical to the success of this well. 2. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.0 ppg at any time ( @1500 sxs barite on location at all times). 3. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. Well Specifics: Casing Program MD TVD Footage 12 -1/4" hole (9 -5/8" casing) 2672' 2649' 2672' 8 -1/2" hole (7" casing) 11014' 10200' 8342' 6 -1/8" pilot hole 11394' 10469' 380' 6 -1/8" production hole 14441' 10204' 3427' Formation Tops /Casing Program TMD TVD Comments Base Perm 1874' 1874' Reduce viscosity 9 5/8" casing 2672' 2649' West Sak 6053' 5849' String in LCM Top HRZ 8060' 7749' Weight up 10.2 ppg LCU 8641' 8299' Top Jurassic 10052' 9549' Watch for shale splinters Top Sag River 10971' 10198' String in LCM 7" csg 10973' 10200' Spot LCM prior to run csg Pilot hole TD 11353' 10469' If possible cut weight Production TD 14404' 10214' 9.0 ppg North Shore #3 V1.2 2 12/6/08 I Halliburton BAROID Brooks Range Mud Program Surface Hole Mud Properties: (12 %" Hole to 2,672') Spud to Base of Permafrost Base of Permafrost to TD Initial Value Final Value Initial Value Final Value Density (ppg) 8.5 <9.2 -9.4 <9.2 -9.4 <9.4 Funnel 200 -300 200 -300 150 100 -125 Viscosity Yield Point 30 -60 30 -60 25 -35 25 -35 Plastic 8 -15 11 -22 12 -28 12 -24 Viscostiy 10 second Gel 10 -30 10 -25 10 -25 10 -25 10 minute Gel 25 -55 25 -55 20 -40 20 -40 pH 8.5 -9.0 8.5 -9.0 8.5 -9.0 8.5 -9.0 Filtrate 8 -15 <8 <8 <8 Solids 5 -8 5 -8 6 -10 6 -12 *note — weight increase is due to natural progression of drill solids. Base Formulation: Aquagel - 20 — 25 ppb Soda Ash - 0.25 ppb X -Tend II - 0.10 ppb X Cide 207 - 0.015 ppb Spud - Base of Permafrost: Drill this section with a conventional spud mud consisting of an extended Aquagel slurry. Mud up the system with the coldest water available and make all maintenance additions, sweeps, etc. with cold water to try to hold the temperature of the mud as low as possible. The initial 200 feet should be drilled with a low flowrate to reduce washout at the conductor shoe. It is recommended that the funnel viscosity of the system be maintained in the 200 -300 second range through the permafrost. This high viscosity may necessitate control drilling to decrease mud losses at the shakers. If any indications of poor hole cleaning are noticed, the viscosity should be quickly increased. If flowrate is limited, higher than normal rheology will be required to provide sufficient hole cleaning. High viscosity sweeps using Aquagel and /or Barazan may be required to supplement hole cleaning. Barolift sweeps should also be considered as they can reduce overall fluid cost by reducing polymer usage in sweeps. Utilize all solids control equipment along with dilution to keep the abrasive solids content of the system to less than one percent. All efforts should be made to keep the density of the fluid <9.4 (ideally 9.2 ppg) ppg through this upper section. Flowline plugging and overloading the cuttings auger are of concern and may dictate reduced flowrates. When heavy clay is encountered, Dril -N -Slide and/or Condet should be utilized to reduce BHA/bit balling and shaker screen blinding. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the gas interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. North Shore #3 V1.2 3 12/6/08 • • Halliburton BAROID Brooks Range Mud Program • A two pound per barrel treatment with Driltreat (Lecithin) will provide some inhibition of the hydrate break -out. • Weight up to the 9.6 ppg range when hydrates are encountered. However, sitting in one spot and circulating to increase the mud weight may thaw out the hydrate section and actually contribute to releasing more hydrates...slowly continue drilling while weighting up. • Keep the mud as cool as possible to minimize the thaw of the hydrates. Mud up with cold water and dilute with cold water. Base Permafrost to TD : The viscosity of the system can be slowly relaxed to the 100 -125 range while drilling this interval. Should any indications of sloughing, fill on connections, or poor hole cleaning appear, immediately begin elevating the viscosity to a level which will eradicate the problem. Heavy clays may be encountered after exiting the permafrost. Additions of Dril -N -Slide and /or ConDet will help to minimize bit balling and screen blinding while drilling these clays. Continue to be aggressive with solids control and dilution to keep the sand content down. Periodic pumping of high viscosity (or Barolift) sweeps while drilling is recommended to aid in hole cleaning. The mud weight should be held <9.4 ppg to interval TD through dilution with cold water and the use of the solids equipment. Lubricants should be added as needed though no need is seen for this surface hole. The API filtrate should be maintained in the <8 range with PAC and Dextrid. Maintain the pH with additions of caustic soda. X -Cide 207 additions should be made to control bacterial action once the PAC and Dextrid are added. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation particularly with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Prior to coming out of the hole for the surface casing job, pump high viscosity sweeps and circulate the well until the flow line returns are clean. The yp should be reduced as far as possible without creating hole instability. Target a 9.4 ppg or less mud weight. If the casing is circulated while running it, ensure the mud is a 125 viscosity or less when circulating at these spots. The YP should be reduced to <25 (70 -90 vis) once the casing is on bottom through the aggressive use of dilution and Carbonox. Use dilution and the solids control equipment to reduce the mud weight to the 9.4 ppg range if hole conditions indicate this is possible. The cement should be chased with thinned mud. Please check with the cementers to target the yp and mud weight they have based their calculations on. If rig operations allow, consider bumping the plug with OBM. Suggested Drilling Parameters for Surface Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM— 600 700 800 60 rpm 176 216 255 120 rpm 195 267 303 North Shore #3 V1.2 4 12/6/08 40 Halliburton BAROID Brooks Range Mud Program Intermediate Hole Mud Properties: (8 - 1/2" Hole to 11,014') Mud Type: Enviromul System Mud Properties Density Vis PV YP ES HTHP WPS _ O/W Initial 9.1 -9.5 55 - 80 10 — 9 — 18 400- <6 220 to *70/30 26 700 260K HRZ to TD 10.2 55 - 80 20 — 9 —18 400- <6 260 to *70/30 35 700 300K • Additional mud weight may be required for effective shale stabilization. • The current OBM has a 76/24 OWR. We will mix a lower OWR for the initial dilution. System Formulation for 68/32 unweighted dilution fluid Product Concentration LVT -200 0.624 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GELTONE V 6 ppb Lime 5 ppb DURATONE 4 ppb AK -70 2 ppb Water 0.303 bbl CaCl2 27.6 ppb Concerns and Contingencies Intermediate Interval Mud Type: ENVIROMUL System. 1. Mud weight: Maintain the mud weight at 9.1 — 9.5 ppg. Increase to 10.2 ppg just prior to the HRZ. Maximize solids control usage. 2. Rheology: Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology, flow rate, and rotary speed will be the primary mechanisms for achieving hole cleaning. 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and destabilizing the shales. Operations Summary: If operations allow, the surface casing plug should be bumped with the MOBM. Approximately 200 bbl of oil mud will be required to bump. Prepare the pit system for the ENVIROMUL as follows: • Clean pits, solids control equipment, all lines and pumps. • Flush all lines with a small volume of oil and discard. • Disconnect all water lines to the pit area and rig floor. • Check all steam fittings in pit room for leaks and repair as needed. North Shore #3 V1.2 5 12/6/08 • • Halliburton BAROID Brooks Range Mud Program Baroid recommends a 400 bbl dilution fluid be added to the used mud system prior to shipping it to the rig. This will reduce the mud weight and low gravity solids. If operations do not allow bumping the plug with ENVIROMUL, displace as follows: Once the shoe has been drilled, displace the well to the ENVIROMUL system designated for this interval of the well. Pump the following spacers ahead of the oil mud: Spacer Formulations: • Pump 50 bbl of >40 YP Barazan D+ spacer. • 50 barrels of the OBM treated with GELTONE to a YP > 40 (app. 4 -6 sx). • Follow with ENVIROMUL mud system. Displacement procedure: • Monitor pump strokes to obtain correct displacement. • Maintain maximum pump rates. • Have the bit on bottom as the oil mud exits the bit. • Reciprocate the drill string by one joint every 15 minutes • Rotate the pipe as rapidly as allowed during the actual displacement. • Do not shut down during the displacement. • Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300 -500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. • Clean possum belly and any troughs which were used to transport water base fluid. Maintenance: 1. Additions of Geltone V will maintain /modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge /swab pressures. Run the rheology checks at 120 °F to TD. RM -63 and Suspentone will also be available. Should any indications of barite sag occur, add 2 ppb of Suspentone 2. Base oil should be used to thin the mud. OMC 2 will also be available to condition (thin) the mud as required; however, caution should be used when using oil mud thinners to avoid over - thinning the system. 3. Drill this interval with a tight DURATONE HT filtration mechanism (< 6 cc /30 min @ 200° F). AK 70, Barotrol and BARABLOK are also available. These asphaltines should be added (2 ppb) prior to drilling the shale sequences. 4. The electrical stability of the mud should be run in the 400 -700 volt range with EZ MUL NT and INVERMUL NT as the emulsifiers. DRILTREAT will be available as an effective wetting agent for weighting up. 5. Maintain the water phase salinity in the 220,000 — 300,000 mg /I range with sack calcium chloride. The WPS can be run at the lower range and then raised to 280,000 for the HRZ. It will then need increased to 300,000 for the Kingak. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. North Shore #3 V1.2 6 12/6/08 Halliburton BAROID Brooks Range Mud Program 7. The initial oil:water ratio will be @70:30. From there, the system will be maintained with base oil allowing the ratio to drift upwards. This will help reduce the cost of the original fluid and then help control rheology /ECD with a higher ratio in the lower depths of the well. 8. String in 2 -3 ppb of Barofibre and 2 -3 ppb of Baracarb 50 while drilling the West Sak and Sag River sands. This will help strengthen these zones for the high mud weight and reduce the chances of losses, ballooning and /or differential sticking while running the 7" csg. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM— 450 500 550 60 rpm 168 189 207 100 rpm 240 301 330 North Shore #3 V1.2 7 12/6/08 • Halliburton BAROID Brooks Range Mud Program Pilot Hole Mud Properties: (6 - 1/8" Hole to 11,394') Mud Type: Enviromul System Mud Properties Density Vis PV YP ES HTHP WPS O/W 9.4 -9.6 55 - 80 10- 26 9 - 18 400- <6 240 to -70/30 700 280K The OWR may be higher from dilution. If so, do not adjust it down. System Formulation Product Concentration LVT -200 0.68 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GELTONE V 6 ppb Lime 5 ppb DURATONE 4 ppb AK -70 2 ppb Water 0.178 bbl CaCl2 22.6 ppb Baracarb 50 15 ppb BAROID As needed Pilot Interval Mud Type: ENVIROMUL System. 1. Mud weight: Maintain the mud weight at 9.4 - 9.6 ppg. The existing mud from the intermediate interval mud will need centrifuged back after setting the 7" csg. Maximize solids control usage. 2. Rheology: Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed, particularly prior to POH for the plug back. Optimized mud rheology and rotary speed will be the primary mechanisms for achieving hole cleaning. 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses. Maintenance: 1. Additions of Geltone V will maintain /modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge /swab pressures. Run the rheology checks at 120 °F to TD. RM -63 and Suspentone will also be available. Should any indications of barite sag occur, add 2 ppb of Suspentone 2. Base oil should be used to thin the mud. OMC 2 will also be available to condition (thin) the mud as required; however, caution should be used when using oil mud thinners to avoid over - thinning the system. 3. Drill this interval with a tight DURATONE HT filtration mechanism (< 6 cc /30 min @ 200° F). AK 70, Barotrol and BARABLOK are also available. North Shore #3 V1.2 8 12/6/08 Halliburton BAROID Brooks Range Mud Program 4. The electrical stability of the mud should be run in the 400 -700 volt range with EZ MUL NT and INVERMUL NT as the emulsifiers. DRILTREAT will be available as an effective wetting agent for weighting up. 5. Maintain the water phase salinity between 240,000 – 280,000 mg /I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be @80:20. However if the O/W ratio is different in the existing system from the intermediate interval do not adjust it. 8. String 2 -3 ppb of Baracarb 50 while drilling the sands. This will help strengthen them and reduce differential sticking tendencies while logging. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM— 200 250 300 60 rpm 102 159 225 100 rpm 158 234 320 North Shore #3 V1.2 9 12/6/08 • Halliburton BAROID Brooks Range Mud Program Production Hole Mud Properties: (6 -1/8" Hole to 14,441') Mud Type: Enviromul System Mud Properties Density Vis PV YP ES HTHP WPS O/W 9.0 55 - 80 10— 26 9 —18 800- <6 240 to 80/20 1100 280K System Formulation Product Concentration LVT -200 0.68 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GELTONE V 6 ppb Lime 5 ppb DURATONE 4 ppb AK -70 2 ppb Water 0.178 bbl CaCl2 22.6 ppb BAROID As needed Production Interval Mud Type: ENVIROMUL System. 1. Mud weight: Displace the existing system with a cleaner, reconditioned MOBM system. The mud weight will be maintained at -9.0 ppg unless hole conditions dictate otherwise. Maximize solids control usage. 2. Rheology: Maintain a YP between 9 and 18. Pump high viscosity or Barolift sweeps throughout the interval as needed. Optimized mud rheology and rotary speed will be the primary mechanisms for achieving hole cleaning. 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses. Maintenance: 1. Additions of Geltone V will maintain /modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge /swab pressures. Run the rheology checks at 120 °F to TD. RM -63 and Suspentone will also be available. Should any indications of barite sag occur, add 2 ppb of Suspentone 2. Base oil should be used to thin the mud. OMC 2 will also be available to condition (thin) the mud as required; however, caution should be used when using oil mud thinners to avoid over - thinning the system. 3. Drill this interval with a tight DURATONE HT filtration mechanism (< 6 cc /30 min @ 200° F). AK 70, Barotrol and BARABLOK are also available. 4. The electrical stability of the mud should be run in the 400 -700 volt range with EZ MUL NT and INVERMUL NT as the emulsifiers. DRILTREAT will be available as an effective wetting agent for weighting up, if necessary. North Shore #3 V1.2 10 12/6/08 • 0 Halliburton BAROID Brooks Range Mud Program 5. Maintain the water phase salinity between 240,000 — 280,000 mg /I range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. 6. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 7. The initial oil:water ratio will be 80:20. However if the O/W ratio is already higher in the existing system do not adjust it down. 8. String 2 -3 ppb of Baracarb 50 while drilling the sands. This will help strengthen them and reduce differential sticking tendencies while logging. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real -time use of the DFG software for the actual ROP while drilling. The table below highlights the maximum ROP recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM—> 200 250 300 60 rpm 115 164 236 100 rpm 165 221 298 North Shore #3 V1.2 11 12/6/08 • Halliburton BAROID Brooks Range Mud Program Risks and Contingencies for the well: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the well. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long ways toward reducing the risk of lost returns. Weilbore Instability: The possibility for running shale exists, particularly in the HRZ and Kingak. Should this occur, consider weighting up in increments if 0.4 ppb. AK -70, Barotrol and /or Barablok additions should be made to plaster the walls. Also, maintaining a tight filtrate and high water -phase salinity (260K — 300K) will help minimize the risk. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack -off as related to poor hole cleaning, i.e. cuttings bed. Stuck pipe can occur if a cuttings bed forms, or if the wellbore exhibits severe instability. The best cure is to pro - actively prevent the occurrence of either scenario. If they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming a large cuttings bed is an invitation to packing off and resulting stuck pipe, and backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Careful judgment must be employed if sensitive shies are exposed as reducing the mud weight may cause instability. Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (PWD increases, drag, torque, partial packing off) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps in the pay sands. The returns at surface of all pills should be monitored at the shakers and documented to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Long circulation times should be avoided if the bit/BHA are in one of the mudstone /clay sections. Pipe should be kept moving at all times during this circulation period. High speed pipe rotation is the most critical factor for hole cleaning in the high angle portions of the wellbore. ROP rates above the recommended levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: • wiper trips • back reaming • extended periods of circulation (with maximum pipe rpm, targeting > 100 rpm) • hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) • connection practices - employing extended gpm, rpm and back reaming during the connection North Shore #3 V1.2 12 12/6/08 Halliburton BAROID Brooks Range Mud Program Fluid Volumes: Surface Interval: At spud approximately 600 barrels of new fluid will be delivered. Dilution rates for the 12 -/4" p pp Y section are anticipated at 1.0 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 500 600 800 Dilution 1900 2700 3700 Total 2400 3300 4500 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 430 490 580 Wetting Fluid 220 490 1160 Total 650 960 1740 Intermediate Interval: Approximately 800 bbl of recondition MOBM will be required to fill the hole and pits prior to drilling. Dilution rates for the 8 -1/2" intermediate section are anticipated at 0.25 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 700 800 1000 Dilution 1400 2200 3400 Re -use to next interval -1000 -800 -500 Total 1000 2200 3900 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 620 680 770 Wetting Fluid 310 680 1540 Total 930 1360 2310 Pilot Hole: The existing fluid system from the intermediate interval will be reconditioned for use on this interval. Some dilution prior to drilling out will likely be required to get the mud into programmed specifications. Dilution rates for this 6 -1/8" section are anticipated at 0.15 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial Build 0 200 500 Dilution 50 100 200 Total 50 300 700 North Shore #3 V1.2 13 12/6/08 • I Halliburton BAROID Brooks Range Mud Program Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 25 27 31 1 Wetting Volume 13 27 62 Total 38 54 93 Production Interval: A cleaner, reconditioned MOBM system is planned for use on this interval. Approximately 1100 bbl of mud will be required to displace the well and fill the pits. Dilution rates for the 6 -1/8" hole section are anticipated at 0.15 bbl /ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial Volume 900 1100 1300 Dilution 300 450 900 Total 1200 1550 2200 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttings Volume 110 120 140 Wetting Fluid 60 120 280 Total 170 240 420 Fluid Costs - 2 scenarios: With diluted back "stock" OBM in payzone. This assumes reuse of excess OBM (after it's diluted) for dilution in the 8 1 /2" hole section. P10 P50 P90 12 -1/4" Surface 32,000 44,000 65,000 8 -1/2" Intermediate 200,00 315,000 615,000 6 -1/8" Pilot Hole 42,000 65,000 130,000 6 -1/8" Production 145,000 204,000 420,000 Total $419,000 $628,000 $1,230,000 With NEW OBM in payzone. This assumes reuse of excess OBM (after it's diluted) for dilution in the 8 1 /2" hole section. P10 P50 P90 12 -1/4" Surface 32,000 44,000 65,000 8 -1/2" Intermediate 200,00 315,000 615,000 6 -1/8" Pilot Hole 42,000 65,000 130,000 6 -1/8" Production 295,000 385,000 730,000 Total $569,000 $759,000 $1,540,000 North Shore #3 V1.2 14 12/6/08 0 0 Halliburton BAROID Brooks Range Mud Program Surface — Modeled hole cleaning Operator Brooks Range Rig: Nabors 16E : Spud Mud 1.842 % Cutting Total dell: North Shore #3 : flow Rate : 650 galtmin ROP =125 ftthr 1.843 % Cutting Eff Cuttings Transport Average Hole ECD Mud Weight = 9.5lbtgal Cutting Dia =.25 in Load, % Eff avg X V, ft /min Angle Iblgal R.1 s@ 125 ftthr120 rpm t RC 100 rpm.5m t C =3m t 220 lido Cut 1 1 wt Cut 4. x 3.34 x 1872.0 ft 1000- - -- , i 128G0.25.0inii800.0) ft - 3,24 9.65319.921 Ibtgal 2.05 IF Mil IP" I 2 12.25 in 00012098,0)ft 63 9.653/9.923 Iblgal \ 4.x2.563x60.0ft 12.25 in HC 2672.012649 91 ft I 8. x 2.813 x 200.0 ft 0 r I I 10 I I r • l 1 2763.7 9.613 t 9.898 Iblgal 5 1015 20 25 0 50 100 0 93 185 30 60 90 9.50 10.00 10.50 .5 hr CUT time Hole cleaning is good with 650 gpm and 120 rpm at a penetration rate of 125 fph. If excessive sliding is required, remedial actions such as extended circulating times and sweep will be required, particularly prior to trips. North Shore #3 V1.2 15 12/6/08 alL_ • Halliburton BAROID Brooks Range Mud Program Intermediate Hole — Modeled hole cleaning Operator: Brooks Range Rig: Nabors 16E : MOBM 1.178 %Cutting Total Well: North Shore #3 : flow Rate = 450 gal /min ROP =100 ft /hr 1.181 % Cutting Elf Cuttings Transport Average Hole ECD Mud Weight .10.2Ib /gal Cutting Dia =.15 in Load, % Elf avg % V, ft /min Angle , lb /gal R•1 s@ 100 ft /hr•120 rpm / HC. 100 rpm-3m / C.5m / .86 ME CM 1000 RR1.5 8.835 in — — 2000 -. .65 IMIIJ1 11 I 7innn ono nr _ 1.36 lilliUll '" II` 26720(2649.0) ft f — 1 3000- 00- 1.28 10.562 / 10.670 lb /gal 40 5000- —14. x 3.34 x 10214.0 ft 6000- 7000- I 8000- 8.5 in 8852.0 (8463,0) ft — — • 9000• 1611111111111111 8.5 in — — nr 1.43 ■_•IIIIM■II_■ 1 8.5in _ _ 10001 . 1.24 ■C.��m�� ∎o 10072,0 (9534.0) ft — — 4. x 2.563 x 600.0 ft 1,07 1 ®,1. . .'.' 8.5 in rtn77n rh1n� . 11 _i i 11014.0 (10200.0) ft 6.75 x 2x13 x 200.0 ft 11000 00 11194.0 5 1015 20 25 0 50 100 0 207 413 30 60 90 10.10 10.60 11.10 10.681 / 10.817 lb/gal 1.2 hr CUT time Hole cleaning is good with 450 gpm and 100 rpm at a penetration rate of 150 fph. Hole cleaning becomes poor in the higher angle portion of the wellbore when rotating less than 80 rpm. Flowrates above 450 raise the ECD but not by much (550 gpm raises it .05 ppg). North Shore #3 V1.2 12/6/08 1 • ili Halliburton BAROID Brooks Range Mud Program Pilot Hole - Modeled hole cleaning Operator: Brooks Range Rig: Nabors 16E : MOBM 1.162 %Cutting Total ,'/ell: North Shore #3 : : Flow Rate = 200 gal /min ROP = 80 ft /hr 1205 % Cutting Elf Cuttings Transport Average Hole ECD Mud Weight =9.51b /gal CuttingDia...1 in Load, % EH avg % V. It /min Angle Ib/gal R.1 s@ 80 ft /hr60 rpm / HO. 60 rpm.3m / C =Sm / II 9 :,„, C ut Cut 1030 : ..1 P PI; 5 in 8.8351n - - 2000 1.07 , r ' 81 nn n r1noa m 4 - _ 1.13 8.835 in 2672.0 (2649.01 it '- -- 3000-: 1,21 1! 9.732 /gal ' \\ • 4000- 1 5000 -: ---I 4. x 3.34 x 10594.0 ft 6000 -: I 7000 !li \\ 8000 -: 1 \ \ 6,276 in 8852.0 (8463.0) ft - - 9000? 1.14 r 6 27g in I rmr' - . 1030 - - 1 .43 _ _ 6.276 in 1.64 2.49 10072.0 (9534.0) ft - in pro incal o-,),, i i ,13.5 x 2.764 x 600.0 ft 21 II ! L I 6.276 in 11300 1.10 ' - - 6.125 in 4.25 x 2. x 200.0 ft . .00 - 1 _ J 11575. 11394,0 (10469.0) ft r r 1 I r i 10.594 / 10.741 lb /gal 5 10 15 20 25 0 50 100 0 126 252 30 60 90 9.50 10.50 11.50 1.6 hr CUT time A flowrate of 200 to 250 gpm is recommended. These flowrates give good hole cleaning with reduced ECD. ECD increases very rapidly at flowrates over 250 gpm (0.5 ppg increase with 275 vs 300 gpm). North Shore #3 V1.2 17 12/6/08 • 0 Halliburton BAROID Brooks Range Mud Program Production - Modeled hole cleaning Operator: Brooks Range Rig: Nabors 16E : M08M 1.410 %Cutting Total ,1 North Shore #3 : Flow Rate. 200 gal/min ROP = 80 ftlhr 1.192 % Cutting Eff Cuttings Transport Average Hole ECD Mud Weight: 9.0lblgal Cutting Dia. =.1 in Load, % EH avg %, V, ftlmin Angle Ibigal R•1 s@ 80 ftlhr60 rpm / NC 60 rpm•3m / C =5m / 1.07 w!o Cut 1000; w rill II o 835 i .. .. in _ 2000: 1,07 1111 8.835in - 1.13 1--- pi It .. 2672.0 (2649.0) it • 3000.( 1.14 I 9.232 / 9.370 lb /gal 4000 5000-: I ilili 60001 7000 H 4. x 3.34 x 13641.0 ft 8000 4 6.276 in 9000 ' �_ I....... 6 .7 6 in r ug m ►F _ . 1. 111111111 1 , " - . 1,43 � 6 . 2 76 in _ - 1000 2,49 _-, ; - -- 1 10072.0 (9534.0) ft - . 1.82 11000 .o...... _ ®, c 1 1� ;K . . 2,322.70 -' 79 2.32 6,125 in _ • iinr/nrininrmti • 12000' P1111111 iii 6.125 in = 2 58 ` 12648.0 (10169.0) It - • 13000-E \li 10 .307 ! 10.458 113/gal 35 x 2.764 x 600.0 ft NEM / 14000 L 3,30 _ Neil 6. 125 in 4.25 x 2. x 200.0 it Ilti i r r , 1 114622.3 14441.0 (10204.011t 5 1015 20 25 0 100 0 126 252 30 60 90 9.00 10.00 11.00 10.565 / 10.717 Iblgal 2.2 hr CUT time Hole cleaning is marginal in the horizontal section of the wellbore at 250 gpm and 60 rpm at 80 fph. A minimum of 80 rpm should be used to ensure good hole cleaning or reduce the ROP to 60 or less. Again, flowrates above 250 gpm cause a sharp increase in ECD. Increasing from 250 to 300 gpm causes an ECD increase of 0.55 ppg. North Shore #3 V1.2 18 12/6/08 • • Schlumberger C emCAD E well cementing recommendation for 9 -5/8" Surface Casing Operator : Brooks Range Well : NS 3 Sag Producer Country : US Field : North Slope Brooks Range State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : North Shore 3 PB1 (P4) Proposal Proposal No. : Draft v2 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 - - 2008 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford @slb.com well description Configuration Casing Stage : Single Rig Type : Land Prev.String MD : 120.0 ft OD : 16 in Weight : 84.0 lb/ft Csg/Liner MD : 2671.5 ft OD : 9 5/8 in Weight : 53.5 lb/ft Landing Collar MD 2591.5 ft Casing/liner Shoe MD 2671.5 ft Mud Line 0.0 ft Total MD 2671.5 ft �is'Gt4 BHST 70 degF 4 Bit Size 121/4 in Mean OH Diameter 12.250 in I t..) Mean Annular Excess 115.6 % C Mean OH Equivalent Diameter 14.711 in 47 Total OH Volume 536.4 bbl (including excess) (tG 9Z VAIE 4# Disclaimer Notice' This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred * Mark of Schlumberger Page 1 North Shore 3 cfw , 10-27-2008 , LoadCase Surface Casing , Version wcs- cem452_07 • Client : Brooks Range Schlumaerger Well NS S 3 3 Sag Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing Section 1: fluid sequence Job Objectives: Cement to Surface Original fluid Mud 9.50 lb/gal Pv : 24.000 cP Ty : 16.00 Ibf/100ft2 Displacement Volume 183.4 bbl Total Volume 684.8 bbl TOC 0.O ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH XT 75.0 0.0 10.00 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Lead Slurry 381.7 2171.5 10.70 Pv:27.000 cP Ty:24.00 Ibf /100ft2 Tail Slurry 44.7 500.0 2171.5 15.80 Pv:96.000 cP Ty:36.00 Ibf /100ft2 Mud 183.4 0.0 9.50 Pv:24.000 cP Ty:16.00 Ibf /100ft2 Static Security Checks : Frac 11 psi at 120.0 ft Pore 15 psi at 120.0 ft Collapse 5549 psi at 2591.5 ft Burst 6790 psi at 0.0 ft Csg.Pump out 51 ton ft (X 1000) psi C ) 0 2 „ — Hydrostatic — Frac — Pore o - 0 o - ry c� - Fluid Sequence Static Well Security Page 2 North Shore 3.cfw ; 10-27-2008 ; LoadCase Surface Casing , Version wcs- cem452_07 0 • Client : Brooks Range SCI rgr Well : NS 3 Sag Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing Section 2: pumping schedule Start Job: Circulation & Condiction Mud, Safety Meeting, Pressure Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH XT 4.0 75.0 18.8 75.0 80 7 -Start Pumping Spacer Pause 0.0 0.0 5.0 0.0 80 4 -Drop Bottom Plug Lead Slurry 5.0 381.7 76.3 381.7 80 13 -Start Mixing Lead Slurry Tail Slurry 5.0 44.7 8.9 44.7 80 16 -Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 18 -Drop Top Plug Mud 8.0 183.4 22.9 183.4 80 19 -Start Displacement Total 02:16 684.8 bbl hr:mn End Job: Bump Top Plug, Bleed -Off Pressure Check Floats Dynamic Security Checks : Frac 9 psi at 120.0 ft Pore 7 psi at 120.0 ft Collapse 5549 psi at 2591.5 ft Burst 6431 psi at 0.0 ft Temperature Results BHCT 75 degF Simulated Max HCT 73 degF Simulated BHCT 73 degF Max HCT Depth 2671.5 ft CT at TOC 70 degF Max HCT Time 02:16:57 hr:mn:sc Static temperatures : At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 20 degF Bottom Hole (degF) (degF) 70 degF Page 3 North Shore 3.cfw ,10 -27 -2008 , LoadCase Surface Casing , Version wcs- cem452_07 • • Client : Brooks Range SchIumberger Well : NS 3 Sag Producer {� (� String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing 0 In Cal °. WHP R Cal °. Pump Press. C 0 25 50 75 100 125 150 Time (min) Fluids at 2671 ft Acquired 0 Out - -- Acquired 0 In lll __ E 0 Out } 0 In - - ` 03 I o col 2 50 7 100 1 0 125 150 Time (min) Page 4 North Shore 3.cfw ; 10 -27 -2008 ; LoadCase Surface Casing : Version wcs- cem452_07 • 0 Client : Brooks Range Schl rger Well NS S 3 3 Sag Sag Pro Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing * CemCADE Client : Brooks Range Well : NS 3 Sag Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Depth = 120 ft Depth = 2671 ft o- p N 0" — Frac — Frac — Pore — Pore N — Hydrostati I y.h..05,tn, — Dynamic — Dynamic C u7 I N 03 O N o I 0 CD co a— ca 0 c— c Q Qo_ U t to D7 1 D7 N O _ U a Q) - Ti : d I O 0 50 100 150 0 50 100 150 N Time (min) Time (min) Y Z Total Depth = 2671.5 ft Top of Cement = 0.0 ft *Mark of Schlumberger SdillialiPli Page 5 North Shore 3.cfw ;10 -27 -2008 ; LoadCase Surface Casing ; Version wcs- cem452_07 • • Client : Brooks Range S I kerger Well NS S 3 3 Sag Sag Pro Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.50 lb /gal Rheo. Model : BINGHAM Pv : 24.000 cP At temp. : 80 degF T : 16.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) MUD Mud Type : WBM Job volume : 183.4 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 0.0 % Water : 96.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 10.00 lb /gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF T : 21.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) Job volume : 75.0 bbl Lead Slurry DESIGN Fluid No: 3 Density : 10.70 lb /gal Rheo. Model : BINGHAM Pv : 27.000 cP At temp. : 80 degF Tv : 24.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : ArcticSET Light Mix Fluid : 19.043 gal /sk Job volume : 381.7 bbl Dry Density : 105.47 lb /ft3 Yield : 4.33 ft3 /sk - Quantity : 495.18 sk --"' Sack Weight : 188 lb Solid Fraction : 41.2 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 19.043 gal /sk Page 6 North Shore 3.cfw ,10 -27 -2008 , LoadCase Surface Casing , Version wcs- cem452_07 • S Client : Brooks Range SCI rg�r Well : NS 3 Sag Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing Tail Slurry DESIGN Fluid No: 4 Density : 15.80 lb /gal Rheo. Model : BINGHAM P„ : 96.000 cP At temp. : 80 degF Ty : 36.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.097 gal /sk Job volume : 44.7 bbl Dry Density : 199.77 lb/ft3 Yield : 1.17 ft3 /sk " Quantity : 215.13 sk z!�s Sack Weight : 94 lb Solid Fraction : 41.6 % BASE FLUID Type : Fresh water Density : 8.32 lb /gal Base Fluid : 5.097 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.200 %BWOC Fluid loss S002 0.800 %BWOC Accelerator D153 0.100 %BWOC Antisettling Section 4: centralizer placement Top of centralization :100.0 ft Bottom Cent. MD :2661.5 ft Casing Shoe :2671.5 ft NB of Cent. Used :36 NB of Floating Cent. :21 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO @ Depth (ft) Joint ( %) (ft) 1631.5 12 1/3 541 - ANJO -9 5/8 -6 -36 (.171") 100.0 1626.5 1791.5 8 2/1 541 - ANJO -9 5/8 -6 -36 (.171") 59.0 1781.5 2191.5 8 4/5 541 - ANJO -9 5/8 -6 -36 (.171") 54.2 1809.0 2671.5 8 2/3 541 - ANJO -9 5/8 -6 -36 (.171 ") 76.7 2571.5 Centralizer Description Centralizer Tests Cent. Name Code Casing Max. Min. OD Rigid Origin Hole Size Running Restoring OD OD (in) (in) Force Force (in) (in) (Ibf) (Ibf) 541 - ANJO -9 5/8 -6- 9 5/8 13.252 9.846 No Houma 12.250 299.00 1733.28 36 (.171 ") (1) - Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications Page 7 North Shore 3 cfw ;10 -27 -2008 , LoadCase Surface Casing , Version wcs- cem452_07 • • Client : Brooks Range Suhlumbergur Well NS S 3 3 Sag Sag Pro Producer String : Surface Casing District : Prudhoe Bay, Alaska Country : US Loadcase : Surface Casing Running Force Calculations: Travelling Block Weight :20.0 ton Friction Factor Centralizer /Formation :0.3 Total Drag Force :1.3 ton Hook load Down Stroke :79.4 ton Hook load Up Stroke :81.9 ton ft °lo 51 .1 0 80 90 100 _ _ Between Cent. +,3t Cent. o — — E L F — CV - Pipe Standoff Page 8 North Shore 3 .cfw, 10 -27 -2008 , LoadCase Surface Casing; Version wcs- cem452_07 • Schlumberger C emCAD E well cementing recommendation for Plug Back Operator : Brooks Range Well : North Shore #3 Country : US Field : North Slope State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : North Shore 3 PB1 (P4) Proposal No. : Draft vt Service Point : Prudhoe Bay, Alaska Date Prepared : 12 -1 -2008 Business Phone : 907 - 659 -2434 FAX No. : 907 - 659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford@slb.com well description Stage : Single Rig T Configuration Plug S g g g yp e : Land Prev.String MD: 11080.0 ft OD : 7 in Weight : 29.0 lb /ft Drill Pipe MD : 11460.0 ft OD : 31/2 in Weight :13.3 lb/fit Mud Line 0.0 ft Total MD 11460.0 ft BHST 230 degF Bit Size 61/8 in �t Mean OH Diameter 6.125 in I C J ��' l4 Mean Annular Excess 30.0 % Mean OH Equivalent Diameter 6.715 in Total OH Volume 16.6 bbl (including excess) C) Target K.O.P. 11100.0 ft ir L Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. Mark of Schlumberger Page 1 North Shore 3 cfw, t2 -01 -2008 ; LoadCase Plug Back (a) , Version wcs- cem452_07 • • Client : Brooks Range Well Schlumberger Well North orth Shore #3 String : Plug Back District : Prudhoe Bay, Alaska Country : US Loadcase : Plug Back (a) Section 1: fluid sequence Job Objectives: Plug Back Pilot Hole from 11,460' - 10,880' Original fluid Mud 9.60 lb/gal Pv : 24.000 cP Ty : 16.00 lbf/100ft2 Displacement Volume 193.2 bbl Drill Pipe Volume 193.2 bbl Total Volume 222.0 bbl TOC 10788.7 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/gal) MUDPUSH II 20.0 1238.3 9550.5 13.10 Pv:32.000 cP Ty:21.00 lbf/100ft2 Plug 19.5 671.3 10788.7 17.00 P0:122.000 cP Ty:40.00 lbf/100ft2 Plug 18.7 9824.2 17.00 Pv:122.000 cP Ty:40.00 lbf/100ft2 MUDPUSH II 21.6 8607.8 13.10 p0:32.000 cP Ty:21.00 lbf/100ft2 Mud 142.2 602.3 9.60 Pv:24.000 cP Ty:16.00 lbf/100ft2 Static Security Checks : Frac 2882 psi at 11460.0 ft Pore 513 psi at 11080.0 ft Csg.Pump out 86 ton ft (x 1000) psi 0 9 — Hydrostatic — Frac — Pore 0 L ■ o ua Fluid Sequence Static Well Security Page 2 North Shore 3.cfw ; 12 -01 -2008 ; LoadCase Plug Back (a); Version wcs- cem452_07 i • Client : Brooks Range S I berger Well North orth # Shore #3 String : Plug Back District : Prudhoe Bay, Alaska Country : US Loadcase : Plug Back (a) Section 2: pumping schedule Start Job: Circulation & Condiction mud, Safety Meeting, Pressure Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 20.0 5.0 20.0 80 7 -Start Pumping Spacer Plug 4.0 38.2 9.5 38.2 80 9 -Start Cement Slurry MUDPUSH II 4.0 21.6 5.4 21.6 80 7 -Start Pumping Spacer Mud 5.0 130.0 26.0 130.0 80 19 -Start Displacement Mud 2.0 12.2 6.1 142.2 80 19 -Start Displacement Total 00:52 222.0 bbl hr:mn End Job: Under Displace by 18 bbls. POOH slowly to 10,400' Reverse out two DP Volumes Dynamic Security Checks : Frac 1241 psi at 11080.0 ft Pore 267 psi at 11080.0 ft Temperature Results BHCT 196 degF Simulated Max HCT 230 degF Simulated BHCT 199 degF Max HCT Depth 11460.0 ft CT at TOC 200 degF Max HCT Time 00:00:00 hr:mn:sc Static temperatures : At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 1 226 degF Bottom Hole (degF) (degF) 230 degF Page 3 North Shore 3.cfw ,12 -01 -2008 , LoadCase Plug Back )a) , Version wcs- cem452 • • Client : Brooks Range Well Schlumbergur Well North orth Shore #3 String : Plug Back District : Prudhoe Bay, Alaska Country : US Loadcase : Plug Back (a) u° o ni —Calc. WHP o Calc. Pump Press. x o 0 10 2 0 3 0 4 0 5 0 60 Time (min) Fluids at 11460 ft c co T E — Acquired 0 Out I — Acquired Q In Q -Out O M J - QIn 0 1 2 O O 0 10 20 30 40 50 60 Time (min) Page 4 North Shore 3 .cfw , 12 -01 -2008: LoadCase Plug Back (a) , Version wcs- cem452_07 1 Client : Brooks Range S I i r Well North orth # Shore #3 String : Plug Back District : Prudhoe Bay, Alaska Country : US Loadcase : Plug Back (a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 9.60 lb/gal Rheo. Model : BINGHAM P : 24.000 cP At temp. : 80 degF T : 16.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) MUD Mud Type : OBM Job volume : 142.2 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 0.0 % Water : 96.0 % MUDPUSH I1 DESIGN Fluid No: 2 Density : 13.10 lb/gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF T : 21.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) Job volume : 41.6 bbl Plug DESIGN Fluid No: 5 Density : 17.00 lb/gal Rheo. Model : BINGHAM P : 122.000 cP At temp. : (degF) T : 40.00 Ibf /100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 4.727 gal /sk Job volume : 38.2 bbl Dry Density : 199.77 Ib /ft3 Yield : 1.32 ft3 /sk Quantity : 162.49 sk Sack Weight : 94 lb Solid Fraction : 52.1 % BASE FLUID Type : Fresh water Density : 8.32 lb/gal Base Fluid : 4.727 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 1.000 %BWOC Dispersant D066 35.000 %BWOC Silica D167 0.200 %BWOC Fluid loss D800 0.300 %BWOC Retarder Page 5 North Shore 3cfw, 12 -01 -2008, LoadCase Plug Back (a), Version wcs- cem452_07 • • Client : Brooks Range �Y�Irg�r Well : North Shore #3 String : Plug Back District : Prudhoe Bay, Alaska Country : US Loadcase : Plug Back (a) Well : North Shore #3 Schlumberger Field :North Slope C emCAD E plug cementing recommendation for Plug Back Operator : Brooks Range Prepared for : Mrs. Natasha Sachivichik Prepared by : Tony Stafford Date Prepared : 12 -1 -2008 Phone : 907 273 - 1700 E - Mail : tstafford©slb.com Plug Configuration Drill Pipe MD OD Weight ft (ft) (in) (lb/ft) 10460.0 5 19.5 ° — 11460.0 3 1/2 13.3 Other Total pumping time: 00:52 hr:mn Displacement volume: 142.2 bbl o Target K.O.P.: 11100.0 ft o — SPACER MUDPUSH II Density: 13.10 lb/gal Volume: 41.6 bbl Length (without Drill Pipe): 1120.0 ft o ' Length (with Drill pipe): 1238.3 ft _ � j SLURRY Plug Density: 17.00 lb/gal Volume: 38.2 bbl Length (without Drill Pipe): 960.0 ft - Length (with Drill pipe): 671.3 ft u� Wet Phase Content Fluid Sequence Fresh water Base Fluid 4.727 gal /sk Fluids Placement Name Volume (bbl) Rate (bbl /min) MUDPUSH II 20.0 4.0 Plug 38.2 4.0 MUDPUSH II 21.6 4.0 Mud 130.0 5.0 Mud 12.2 2.0 Mark of Schlumberger Page 6 North Shore 3.cfw;12 -01 -2008: LoadCase Plug Back (a) ; Version wcs- cem452_07 0 0 Schlumberger C emCAD E well cementing recommendation for 7" Production Casing Operator : Brooks Range Well : North Shore #3 Country : US Field : North Slope State : Alaska Prepared for : Mrs. Natasha Sachivichik Location : North Shore 3 PB1 (P4) Proposa Proposal No. : Draft v2 Service Point : Prudhoe Bay, Alaska Date Prepared : 10 - - 2008 Business Phone : 907 - 659 -2434 FAX No. : 907 -659 -2538 Prepared by : Tony Stafford Phone : 907 - 273 -1700 E -Mail : tstafford©slb.com well description Configuration Casing Stage : Single Rig Type : Land Prev.String MD : 2671.5 ft OD : 9 5/8 in Weight : 53.5 lb/ft Csg/Liner MD : 11353.0 ft OD : 7 in Weight : 29.0 lb /ft Landing Collar MD 11273.0 ft Casing/liner Shoe MD 11353.0 ft Mud Line 0.0 ft Total MD 11353.0 ft BHST 210 degF I s0 14 Bit Size 81/2 in Mean OH Diameter 8.500 in Mean Annular Excess 30.0 % C7 Mean OH Equivalent Diameter 8.901 in a Total OH Volume 668.1 bbl (including excess) fi L 4 UATE ''' Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them If the Operator is aware of any conditions whereby a neighboring well or wets might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. * Mark of Schlumberger Page 1 North Shore 3 cfw; 10 -27 -2008 , LoadCase Tin Production la); Version wcs- cem452_07 • • Client : Brooks Range Well Schlemberger Well North orth Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase 7in Production (a) Section 1: fluid sequence Job Objectives: Zonal Isolation; TOC @ 7,500' Original fluid Mud 10.50 lb/gal Pv : 24.000 cP Ty : 16.00 Ibf /100ft2 Displacement Volume 418.8 bbl Total Volume 574.9 bbl TOC 7500.0 ft Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb /gal) MUDPUSH II 40.0 1362.3 6137.7 13.10 Pv:32.000 cP Ty:21.00 Ibf /100ft2 Tail Slurry 116.1 3853.0 7500.0 15.80 Pv:96.000 cP Ty:36.00 Ibf /100ft2 Mud 418.8 0.0 10.50 Pv:24.000 cP Ty:16.00 lbf/100ft2 Static Security Checks : Frac 414 psi at 2671.5 ft Pore 240 psi at 6137.7 ft Collapse 4375 psi at 11273.0 ft Burst 6630 psi at 0.0 ft Csg.Pump out 107 ton ft (x 1000) psi ._ 0 • 9 . — Hydrostatic — Frac — Pore o • ', a o • a a 0 co 1 a o- c- t Fluid Sequence Static Well Security Page 2 North Shore 3.cfw ;10 -27 -2008 ; LoadCase 7in Production (al ; Version wcs- cem452_07 • • Client : Brooks Range Well S I rger Well North orth Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) Section 2: pumping schedule Start Job: Circulation & Condiction mud, Safety Meeting, Pressure Test Surface Equipment Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol lnj. Comments (bbl /min) (bbl) (min) (bbl). Temp. (degF) MUDPUSH II 4.0 40.0 10.0 40.0 80 7 -Start Pumping Spacer Pause 0.0 0.0 5.0 0.0 80 4 -Drop Bottom Plug Tail Slurry 5.0 116.1 23.2 116.1 80 16 -Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 18 -Drop Top Plug Mud 8.0 370.0 46.3 370.0 80 19 -Start Displacement Mud 2.0 48.8 24.4 418.8 80 21 -Bump Top Plug Total 01:53 574.9 bbl hr:mn End Job: Bump Top Plug, Bleed -Off, Check floats Dynamic Security Checks : Frac 118 psi at 2671.5 ft Pore 159 psi at 11062.0 ft Collapse 4375 psi at 11273.0 ft Burst 4622 psi at 0.0 ft Temperature Results BHCT 162 degF Simulated Max HCT 210 degF Simulated BHCT 173 degF Max HCT Depth 11121.3 ft CT at TOC 155 degF Max HCT Time 00:00:20 hr:mn:sc Static temperatures At Time (hr:mn) (hr:mn) Geo. Temp. Top of Cement (degF) (degF) 154 degF Bottom Hole (degF) (degF) 210 degF Page 3 North Shore 3.cfw ,10 -27- 2008; LoadCase 7in Production (a), Version wcs- cem452_07 • • Client : Brooks Range Well Schlemberger Well North orth Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) o ci —Calc. WHP o — Cale. Pump Press. x ...00 0/4/1......... - c T r 0 20 40 60 80 100 120 Time (min) -moo Fluids at 11363 ft r —Acquired 0 out E Acquired 0 In E 4 Out i U 4 In G' I I ' i 1 1 ° La I 0 20 40 60 80 100 120 Time (min) Page 4 North Shore 3.cfw ;10 -27 -2008 ; LoadCase 7in Production (a), Version wcs- cem452_07 1 • Client : North Shore Rang Well N # 3 ScII r e North # 4� �fj String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) CemCADE * Client : Brooks Range Well : North Shore #3 Stang : Production Casing District : Prudhoe Bay, Alaska Country : US De•th = 2672 ft Depth = 11353 ft - Frac - Frac - Pore - Pore - - i .. -, - nyarwraao - Dynamic - Dynamic CV s f6 H, m 0) Q B d ...=. 2 N N a— N N C C F. C . - r J fi / Q o 0 30 60 90 120 0 30 60 90 120 N Time (min) Time (min) Total Depth = 11353.0 ft Top of Cement = 7500.0 ft *Mark of Schlumberger SehI Page 5 North Shore 3.cfw ; 10-27-2008 ; LoadCase 7in Production (a) ; Version wcs- cem452_07 Client : Brooks Range S I rger Well North orth # Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) Section 3: fluid description Mud DESIGN Fluid No: 1 Density : 10.50 lb/gal Rheo. Model : BINGHAM Pv : 24.000 cP At temp. : 80 degF T : 16.00 lbf/100ft2 Gel Strength : (lbf/100ft2) MUD Mud Type : OBM Job volume : 418.8 bbl Water Type : Fresh VOLUME FRACTION Solids : 4.0 % Oil : 0.0 % Water : 96.0 % MUDPUSH II DESIGN Fluid No: 2 Density : 13.10 lb/gal Rheo. Model : BINGHAM Pv : 32.000 cP At temp. : 80 degF T : 21.00 lbf/100ft2 Gel Strength : (Ibf /100ft2) Job volume : 40.0 bbl Tail Slurry DESIGN Fluid No: 4 Density : 15.80 lb /gal Rheo. Model : BINGHAM P : 96.000 cP At temp. : 80 degF Ty : 36.00 lbf/100ft2 Gel Strength : (Ibf /100ft2) DESIGN BLEND SLURRY Name : G Mix Fluid : 5.056 gal /sk Job volume : 116.1 bbl Dry Density : 199.77 Ib /ft3 Yield : 1.16 ft3 /sk Quantity : 560.02 sk Sack Weight : 94 lb Solid Fraction : 41.9 % --- BASE FLUID Type : Fresh water Density : 8.32 lb/gal Base Fluid : 5.056 gal /sk Additives Code Conc. Function D046 0.200 %BWOC Antifoam D065 0.300 %BWOC Dispersant D167 0.400 %BWOC Fluid loss D800 0.600 %BWOC Retarder D153 0.100 %BWOC Antisettling Page 6 North Shore 3.cfw , 10-27-2008 ; LoadCase 7in Production (al , Version wcs- cem452_07 • Client : Brooks Range S I krger Well l North orth # Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) Section 4: centralizer placement Top of centralization :7500.0 ft Bottom Cent. MD :11343.0 ft Casing Shoe :11353.0 ft NB of Cent. Used :84 NB of Floating Cent. :0 Centralizer Placement Bottom MD Nbr. Cent. / Cent. Name Code Min. STO @ Depth (ft) Joint ( %) (ft) 9913.0 60 1/1 NW -SP -7 - 6- SP -I -85 29.1 8873.0 11353.0 24 2/3 NW-SP-7 - 6- SP -I -85 0.0 11313.0 Centralizer Description Centralizer Tests Cent. Name Code Casing Max. Min. OD Rigid Origin Hole Size Running Restoring OD OD (in) (in) Force Force (in) (in) (Ibf) (Ibt) NW -SP -7 - 6- SP -I -85 7 9.374 7.996 No Hannover 8.500 287.76 1171.25 (1) - Centralizer performance data is based on tests by WEATHERFORD as per the current API 10D specifications Running Force Calculations: Travelling Block Weight :20 ton Friction Factor Centralizer /Formation :0.3 Total Drag Force :10.8 ton Hook load Down Stroke :116.8 ton Hook load Up Stroke :138.5 ton Page 7 North Shore 3 cfw,10 -27 -2008: LoadCase 7in Production (a), Version wcs- cem452_07 • • Client : Brooks Range Well Scrl ergcr Well North orth Shore #3 String : Production Casing District : Prudhoe Bay, Alaska Country : US Loadcase : 7in Production (a) ft o— 0 1 A 0 60 80 100 — Between Cent. -1-At Cent. o — -a- =— °a ■ o + 0 tw Pipe Standoff Page 8 North Shore 3.cfw ;10 -27 -2008 ; LoadCase 7in Production (a), Version wcs- cem452_07 II I if r Exemption - 40 CFR 147.102 (b)(3) EPA Aqu e p 6050000 - AEO 2 North Shore #3 (surface) • 6000000 - .► AEO 1 • 5950000 -� 5900000 4 • 0 CFR 147.102 (b)(3) 5850000 400000 500000 600000 700000 800000 Alaska Department of Natural Resources Land Administration System Page 1 of% t last<a tapper Land Records/Status Plats Recorder's Search State Cabins Natural Resources Alaska DNR Case Summary File Type: ADL File Number: 90429 a Printable Case File Summary See Township, Range, Section and Acreage? Yes No New march LAS Menu 1 Case Abstract 1 Case Detail 1 Land Abstract File: ADL 390429 maP Search for Status Plat Updates As of 12/24/20081 Customer: 000038497 AVCG, LLC LAND DEPARTMENT 510 L STREET, SUITE 601 ANCHORAGE AK 99501 Case Type: 784 OIL & GAS LEASE COMP DNR Unit: 780 OIL AND GAS File Location: DOG DIV OIL AND GAS Case Status: 35 ISSUED Status Date: 04/27/2004 Total Acres: 2560.000 Date Initiated: 10/29/2003 Office of Primary Responsibility.: DOG DIV OIL AND GAS Last Transaction Date: 12/24/2008 Case Subtype: B$ BEAUFORT SEA Last Transaction: AA -NRB ASSIGNMENT APPROVED Meridian: U Township: 012N Range: 012E Section: 01 Section Acres: 640 Search Plats Meridian: U Township: 012N Range: 012E Section: 02 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 11 Section Acres: 640 Meridian: U Township: 012N Range: 012E Section: 12 Section Acres: 640 Legal Description 03 -12 -2004 *****FINAL LEGAL DESCRIPTION* * * * * TRACT BSA2003 -313 T 12 N., R. 12 E., UML4T MERIDIAN, ALASKA. SECTION 1, UNSURVEYED, ALL TIDE AND SUBMERGED LANDS, 30.19 ACRES; T. 12 N, R. 12 E., TRACT B, UMIAT MERIDIAN, ALASKA. http: / /dnr.alaska.gov /projects /las /Case_ Summary.cfm ?FileType = ADL &FileNumber = 390... 12/24/2008 . 1 TRANSMITTAL LETTER CHECKLIST WELL NAME /11;62 /- sA/a ‘• 7' PTD# ..20J Development Service / Exploratory Stratigraphic Test Non - Conventional Well FIELD: POOL: Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev: 1/11/2008 , WEILL pERnoriCHEOKLIST, . Field &Pool UMIAT, UNDEFINED OIL - 842100 Well Name: Program g NORTH SHORE 3 EXP Well bore se ['' PTD #: 2082040 Company BROOKS RANGE PETROLEUM Initial Class!Type EXP / PEND GeoArea 890 ___ __ ___ Unit On /Off Shore On Annular Disposal Administration 1 Permit fee attached NA 2 Lease number appropriate _ Yes 13 Unique well name and number Yes . !4 Well located in a defined pool No Exploratory well. 5 Well located proper distance from drilling unit boundary . Yes 16 Well located proper distance from other wells Yes 17 Sufficient acreage available in drilling unit Yes 2560 acres. 8 If deviated, is wellbore plat included Yes 9 Operator only affected party Yes 10 Operator has appropriate bond in force Yes Blanket Bond # LPM8842179. 11 Permit can be issued without conservation order No Spacing exception being prepared. Appr Date 12 Permit can be issued without administrative approval Yes ACS 12/30/2008 13 Can permit be approved before 15 -day wait Yes 14 Well located within area and strata authorized by Injection Order # (put IO# in comments) (For NA 15 All wells within 1/4 mile area of review identified (For service well only) NA • 16 Pre - produced injector: duration of pre - production less than 3 months (For service well only) NA 117 Nonconven. gas conforms to AS31.05.030(j.1.A),(j-.2.A -D) NA 18 Conductor string provided Yes Engineering 19 Surface casing protects all known USDWs NA Based on salinity information from NS #1 (206 -188), salinities are > 10000 ppm TDS. 1 20 CMT vol adequate to circulate on conductor & surf csg Yes 121 CMT vol adequate to tie -in long string to surf csg No :22 CMT will cover all known productive horizons No Open hole completion planned. 123 Casing designs adequate for C, T, B & permafrost Yes 24 Adequate tankage or reserve pit Yes Rig equipped with steel pits. No reserve pit planned. All waste to approved disposal well(s). 25 If a re- drill, has a 10 -403 for abandonment been approved NA 26 Adequate wellbore separation proposed Yes Proximity analysis performed. Close approaches identified. 27 If diverter required, does it meet regulations Yes Appr Date 1 28 Drilling fluid program schematic & equip list adequate Yes Maximim likely porous formation pressure —9.0 EMW, although shales may "act" higher. MW 10.2 ppg or TEM 1/23/2009 129 BOPEs, do they meet regulation Yes higher due to shales. 130 BOPE press rating appropriate; test to (put psig in comments) Yes Conservative MASP 4673 psi. 5000 psi BOP test planned. it 131 Choke manifold complies w /API RP -53 (May 84) Yes • 32 Work will occur without operation shutdown Yes 33 Is presence of H2S gas probable No H2S has not been reported in the area. Rig has sensors and alarms. 34 Mechanical condition of wells within AOR verified (For service well only) NA 35 Permit can be issued w/o hydrogen sulfide measures No Exploratory well adjacent to Prudhoe Bay Field. Geology 36 Data presented on potential overpressure zones NA Appr Date 37 Seismic analysis of shallow gas zones NA ACS 12/30/2008 38 Seabed condition survey (if off- shore) NA 1 39 Contact name /phone for weekly progress reports [exploratory only] Yes Natasha Sachivichik - 343 -0405. Geologic Engineering Public Spacing exception required for well within 500' of lease boundary. Commissioner: Date: Com issioner: Date Commissioner Date • Well History File APPENDX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history the. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of inforii ation. I 1 1 Data & Consulting Services 1 I � tam " * $* Y !egg!! !a b is s fitk Ek>•f p d It Company: Brooks Range Petroleum, I Well: North Shore 3 Field Exploration I State: Alaska Country: USA Date: 07- APR -2010 1 MOM Schlumberger I Data and Consulting Services 2525 Gambel Street Suite 400 Anchorage, AK 99303 I III :. I p roVISION Bin Porosity 1 Douglas Hupp 1 1 Other company product, and ser** names are the DC their respective ownota. Schluivherge■ 1 Copyright l' Schkum6erga 1009 All ngll** r ®*@ Al rued. Al PC Al47 C I 0 ().-06( 1 1 1 1 1 1 Standard Disclaimer The use of and reliance upon this recorded -data by the herein named company (and any of its ' affiliates, partners, representatives, agents, consultants and employees)is subject to the terms and conditions agreed upon between Schlumberger and the Company, including: (a) Restrictions on use of the recorded -data; (b) Disclaimers and waivers of warranties and representations ' regarding company's use and reliance upon the recorded -data; and (c)Customer's full and sole responsibility for any inference drawn or decision made in connection with the use of this recorded -data 1 1 1 1 1 1 1 1 1 1 Table of Contents ' Executive Summary 4 Contextual Information 4 Data Processing and /or Interpretation 4 Quality Control Review 6 Bin Porosity 6 Sag River Histograms 7 ' Ivishak Histograms 9 Recommendations 12 Terms and Definitions 12 ' Table of Figures Figure 1 - T2 Distribution 4 Figure 2 — proVISION and EcoScope log display 5 ' Figure 3 — proVISION Bin Porosity Histogram 11030 ft to 11080 ft 7 Figure 4 — proVISION Bin Porosity Histogram 11035 ft to 11050 ft 7 Figure 5 — proVISION Bin Porosity Histogram 11070 ft to 11080 ft 8 ' Figure 6 — proVISION Bin Porosity Histogram 11210 ft to 11310 ft 9 Figure 7 — proVISION Bin Porosity Histogram 11210 ft to 11225 ft 9 Figure 8 — proVISION Bin Porosity Histogram 11235 ft to 11255 ft 10 Figure 9 — proVISION Bin Porosity Histogram 11268 ft to 11278 ft 10 ' Figure 10 — proVISION Bin Porosity Histogram 11280 ft to 11300 ft 11 Figure 11 — proVISION Bin Porosity Histogram 11304 ft to 11310 ft 11 t I 1 ' Executive Summary Schlumberger provided proVISION magnetic resonance LWD services in conjunction with ' EcoScope and StethoScope on Brooks Range Petroleum (BRP) well North Shore 3. The proVISION data provides measurements of total, free and bound fluid porosity as well as permeability estimates of the formations logged. In addition this proVISION data was processed ' to provide Bin Porosity distributions to help understand the pore size distributions within the Sag River and Ivishak formations. The results of this analysis are presented in histogram format across selected intervals. Contextual Information Well North Shore 3 well was an exploration well drilled on the North Slope, Alaska. The interval logged with the proVISION consisted of the Sag River, Shublik and Ivishak formations. The Sag River and Ivishak formations are clastic rocks and were the primary reservoir targets. The intervening Shublik formation is not considered reservoir rock consisting of quartz, clay and ' carbonate minerals ' Data Processing and /or Interpretation In addition to standard magnetic resonance processing for porosity and permeability, the proVISION data from North Shore 3 was analyzed to provide bin porosities. Bin porosities provide ' the porosity contribution for selected time increments based on the T2 Distribution to provide information regarding pore size distribution within the rock. The magnetic resonance signal from smaller pore throats occurs at earlier time than thatfrom larger pore throats (See Figure 1). Pore size ,. 1 - - - - Figure 1 T2 Distribution By analyzing the distribution the signal contribution it is possible to gain a further understanding of the pore geometries within the rock. 1 1 1 The figure below presents a composite view of the LWD logging and processed data acquired in I well North Shore 3. P40H_UNC P40H_ CFF7 CFF7 0.2 oh 2000 ohm 0.2 ft3fft3 0 IIMEI I P34H UNC P34H ���� Free Fl Ltd Bing 0.2 ohm .m 2000 � � � _ P22H_UNC P22H I 02 ------ 2000 Bound Fluid Bing Special Mineral 1 a hm m P16H UNC P16H BPHI BPHI @DVM ■ ■ to Bin3 • Pyrte • 0.2 olunm 2000 0.6 ft31ft3 0 VM P28H UNCP2BH IDRO @DVM014PDP 1 150 VM_ 0.2 ohm.m 2000 1.65 • cm3 265 Bin4 Quartz KTIM KTM @ASCI PEB PEB@DVM01 T2DIST ANT2 L 16 0.2 m D 2000 0 20 0 _ 29 ound Water M_ KSDR KSDR @ASCI MRP_ANT2_T2IM T2CUTOFF T2C 02 02 m D 2000 0.6 ft3 /ft3 0 0.3 3000 BS BS @DVM_014P MD RT_ARC @DVM014P FFV ANT2 FIX T T2LM ANT2 T2 ELAN_VOL 6 i TVD 1 : 550 6 (in) 16 tt 02 (ohmm) 2000 06 (ft3 /ft3) 0 0.3 (ms) 3000 1 (VN) 0 1 -- f 1 __ rr. . . qo , • -- _ -.... _ — °. — e 10350 11100,_ -. 1 �,_ ,� � X 1 �_ �1 oaoa 1 1 � - 7 :.� �._ �� 4 11200 .. » —.. ` .s S - - -••-- 1 sett... e• : 10450 &Ks � I u — _ • 11250 - ---...— — ` � i —t .t. `•P It ::.iii F . e . 1 c. i.".„ Mal C 1 10500 1 t .., » - i Figure 2— proVISION and EcoScope log display 1 1 1 1 1 I Track Track 1 Description Gamma Ray, Caliper, Caliper Depth Track Measured Depth I Track 2 Track 3 Resistivity and Permeability Porosity Track 4 proVISION T2 Distribution I Track 5 proVISION Bin Porosities Track 6 ElanPlus Petrophysical Interpretation Depth Track True Vertical Depth ' Y Quality Control Review A QC review of the logging data acquired in this well indicated the data is of high quality. A small I interval indicated the proVISION tool is reading a washout from 11050 ft to 11068 ft MD. The density caliper indicates the borehole is washed out in this interval (this corresponds with the base of the cored section suggesting the 8.5 in. drill bit did not exactly follow the 6.125 in. core 1 hole). The T2 distribution indicates the tool is mostly responding to mud. At 11215 ft MD the proVISION porosity is higher than the EcoScope density porosity. This is due to 1 the presence of pyrite in the formation affecting the calculated density porosity. The proVISION tool is the most accurate porosity device as it is not affected by the changes in matrix density. I Bin Porosity Bin Porosity is presented in log format in the figure above and as histogram plots for selected I intervals below. The time cutoffs used for the Bin Porosities are presented in the table below. Bin Number Array Name Time Start (sec) Time End (sec) I 1 CFF1 0 0.003 2 CFF2 0.003 0.01 3 CFF3 0.01 0.03 I 4 5 CFF4 0.03 0.1 CFF5 0.1 0.3 6 CFF6 0.3 1.0 7 CFF7 1.0 10 The shorter time periods correspond with smaller pore sizes. 1 1 1 1 1 1 Sag River Histograms I proVISION Bin Porosity Histogram 11030 -11080 1 0.06 - — 0.05 —_ I 0.04 0.03 is 0.02 - II 0.01 - - 0 - r ■ i 1 2 3 4 5 6 7 Figure 3 — proVISION Bin Porosity Histogram 11030 ft to 11080 It I Bin Porosity across the Sag River formation. This histogram includes the high porosity upper section and low porosity lower section. Note that the majority of the pores are towards the smaller size. proVISION Bin Porosity Histogram 11035 -11050 1 0.06 0.05 1 0.04 — 0.03 0.02 0.01 - 0 1 t 1 r ( r 1 2 3 4 5 6 7 I Figure 4 - proVISION Bin Porosity Histogram 11035 ft to 11050 ft I Bin Porosity across the upper Sag River formation. Note this histogram indicates more porosity associated with the larger pore sizes than the previous histogram but there still is significant pore space in the lower pore size range. 1 1 1 1 1 proVISION Bin Porosity Histogram 11070 -11080 0.06 — — II 0.05 0.04 0.03 0.02 1 0.01 0 _111111_ ■ ' 1 2 3 4 5 6 7 Figure 5 — proVISION Bin Porosity Histogram 11070 ft to 11080 ft 1 Bin Porosity across the lower Sag River formation. Note that less of the pore size is large in this lower section. 1 In general the upper portion of the Sag River contains larger percentage of large pore size porosity while the lower section of the Sag River is dominated by small pore sizes. Additionally, all three histograms from the Sag River still indicate significant volume of small pore size porosity. 1 1 1 i 1 1 1 1 1 1 1 Ivishak Histograms 1 proVISION Bin Porosity Histogram 11210 -11310 1 0.06 0.05 - 1 0.04 _ 0.03 I 0.02 — 0.01 1 2 3 4 5 6 7 1 Figure 6 – proVISION Bin Porosity Histogram 11210 ft to 11310 ft I Bin Porosity across the Ivishak formation. Note the majority of the pores are large in this formation. I proVISION Bin Porosity Histogram 11210 -11225 0.06 1 0.05 1 0.04 - 0.03 1 0.02 0.01 M. 0 _ �m r - - -- T— T__ 1 1 2 3 4 5 6 7 I Figure 7 – proVISION Bin Porosity Histogram 11210 ft to 11225 ft Bin Porosity across the top 15 ft of the Ivishak formation. This is a clean high porosity section 1 based on the proVISION porosity log. 1 1 1 1 1 proVISION Bin Porosity Histograrn 1 11235 -11255 0.06 - -- - I 0.05 ---r 0.04 I 0.03 0.02 I 0.01 I 1 2 3 4 5 6 7 Figure 8 - proVISION Bin Porosity Histogram 11235 ft to 11255 ft 1 Bin Porosity across 20 ft high porosity section of the Ivishak located between two tight sections. I proVISION Bin Porosity Histogram 11268 -11278 I 0.06 0,05 0.04 ------ 0,03 I 0.02 o.as — - -- I a 1 2 3 4 5 6 7 I Figure 9 — proVISION Bin Porosity Histogram 11268 ft to 11278 ft Bin Porosity across a 10 ft high porosity section of the Ivishak formation. 1 1 1 1 1 1 proVISION Bin Porosity Histogram 1 11280 -11300 0.06 1 0.05 0.04 1 0.03 0.02 — ._ -- 0.01 ' 1 2 3 4 5 6 7 Figure 10 — proVISION Bin Porosity Histogram 11280 ft to 11300 ft Bin Porosity across a 20 ft section of lower porosity sand within the Ivishak formation. Note that while the total porosity is lower across this section the pore size distribution is similar to the other Ivishak histograms. proVISION Bin Porosity Histogram ' 11304 -11310 0,06 0.05 0.04 -- — —___ — —. 1 0.03 0.02 ' 0.01 0 ' 1 2 3 4 5 6 7 Figure 11 — proVISION Bin Porosity Histogram 11304 ft to 11310 ft Bin Porosity across the bottom 6 ft of the proVISION log. Note this section also indicates large pore size similar to the other Ivishak histograms. 1 The Ivishak formation is dominated by large pore size structure compared to the Sag River formation. 1 1 1 1 Recommendations 1 Once the core analysis is completed from the Sag River core this bin porosity evaluation can be calibrated to the grain size distributions derived from the core. This will allow identification of pore size to be interpreted across the non -cored intervals within these formations. Additionally, ' this can be applied should BRP choose to acquire proVISION magnetic resonance data in future wells in the area. 1 Terms and Definitions ' Term Definition MRP_ANT2 Magnetic resonance porosity measured by the proVISION tool. FFV_ANT2 Free fluid porosity identified with the proVISION tool. BFV_ANT2 Bound fluid porosity identified with the proVISION tool. KSDR Permeability determined using the Schlumberger Doll Research equation. 1 KTIM T2_DIST Permeability determined using the Timur-Coates equation. Distribution of the T2 (transverse) relaxation. T2LM Log mean value of the T2 Distribution data. 1 CFF1 CFF2 Free fluid for T2 Cutoff 1 Free fluid for T2 Cutoff 2 CFF3 Free fluid for T2 Cutoff 3 CFF4 Free fluid for T2 Cutoff 4 CFF5 Free fluid for T2 Cutoff 5 CFF6 Free fluid for T2 Cutoff 6 CFF7 Free fluid for T2 Cutoff 7 1 1 1 1 1 1 1 1 Company BROOKS RANGE PETROLEUM CORP. Scblumberger Well Name NORTH SHORE 3 1 Field Name EXPLORATORY Brooks Range Petroleum Corporation Borough NORTH SLOPE 1 State ALASKA Engineer's Name Brett Warta "l , a b 08-Apr-2010 Date 23- Mar -2010 Report Date 08 -A d P P Report By R.Heath API No. 50- 029 - 23410 -00 StethoScope 67 • Data Evaluation Report Innovations in Formation Testing Final Processed Data PD Plot 7 Ver 7.1.56 mow DISCLAIMER THE USE OF AND RELIANCE UPON THIS RECORDED —DATA BY THE HEREIN NAMED COMPANY (AND ANY OF ITS AFFILIATES, PARTNERS, REPRESENTATIVES, AGENTS, CONSULTANTS AND EMPLOYEES) IS SUBJECT TO THE TERMS AND CONDITIONS AGREED UPON BETWEEN SCHLUMBERGER AND THE COMPANY, INCLUDING: (A) RESTRICTIONS ON USE OF THE RECORDED —DATA; (B) DISCLAIMERS AND WAIVERS OF WARRANTIES AND REPRESENTATIONS REGARDING COMPANY'S USE OF AND RELIANCE UPON THE RECORDED —DATA; AND (C) CUSTOMER'S FULL AND SOLE RESPONSIBILITY FOR ANY INFERENCE DRAWN OR DECISION MADE IN CONNECTION WITH THE USE OF THIS RECORDED —DATA. t i Page ' Complete_Report ' Report Cover s Disclaimer 1 Section _l 1 Written_Comments_one_page 1 No_Shore_3_Written_Summary 2 ' Section _2 2 3 1 Test Point Summary Table 4 Test Point Table ' Section_3 3 Well_Job_Data 7 lnclinometry Tables 8. 1 �Shore_3Ho�ktoad_Ptot 11 No_Shore_3_RM_Header 12 No_Shore_3jool_string 13 1 North_Shore3, BRS 14 Well Path Plots 15 Section_4 ' 4 Pressure vs De th Dis la. s 16 1 No_Shore 3 __Pres_vs_Depth_v2 17 1 1 No_Shore_3Time_vs_Depth 18 XY MUD Before vs MUD After 19 Section _5 5 Pretest_Interpretation_two_page 20 Pretest TOO1R006_AQAP_pg0 22 Pretest_TO01R006_,AQAP_pg1 23 Pretest 25 PretestT002R006 AQAP_pg0 26 Pretest TOO2R006__AQAP_pg1 27 Pretest TOO2R006_AQAP_pg2 29 Pretest_T003R006_,AQAP_pg0 30 Pretest_5003R006_AQAP_pg1 31 Pretest_T003R006_AQAP_pg2 33 Pretest_T004R006_,AQAP_pg0 34 Pretest TOO4R006_,AQAP_pg1 35 Pretest TOO4R006 AQAP_pg2 37 Pretest_TOO5R006_AQAP_pg0 38 PretestT005R006_AQAP_pg 1 39 PretestT005R006 AQAP_pg2 41 Pretest TOO6R006_,AQAPpg0 42 PretestT006R006_AQAP_pg1 43 Pretest_5006R006_AQAP_pg2 45 PretestT007R006 AQAP_pg0 46 1 Pretest T007R006 ,AQAP; „pg1 47 ' Pretest_T007R006_AQAP_pg2 49 Section_6 6_,R,eference_Data_one_page 50 ' a Pretest_ Type_Descriptions 51 b,,, Basic_Channel, Description 54 d_StethoScope675Jool_Specs 55 ' Section _7 7 ' 57 1 Section 1 1 Written Comments 1 1 1 1 1 1 1 1 1 1 1 Objective: 1 The objective is to compile a Final StethoScope Evaluation report that includes plots of formation pressures versus depth, a table of test point data, and individual plots of each test draw - down /build -up sequence. Interpretation Summary: 1 7 FPWD tests were attempted, resulting in 6 acquired pressures. See the Test Point Summary Table later in this report for a breakdown of each test. All mobility measurements were low values (around 1 mD /cp or less) and all but Test #4 exhibited very tight formation characteristics, indicative of a super- charging phenomenon affecting the measured formation pressures. This often occurs soon after low mobility and /or low permeability formations are subjected to a higher pressure mud column; it may take from several hours to several days for this artificially induced pressure surge to dissipate. Comments: FPWD Run6 was conducted with the StethoScope 675 tool between 23- March -2010 and 24-Mar- 2010 in the 8.5" hole, from approximately 11,032 ft to 11,056 ft (Measured Depth) in the Sag River section. were attempted, of which 4 were completed with interpretable results, 2 1 As mentioned, 7 tests p p p , were trending tight and the data must be extrapolated to a final formation pressure, and 1 was "Tight ". Comments on specific tests can be found in the Test Point Table later in this report. Test quality is graded by color, with Green being the highest (see the table below for grading explanation). All tests were acquired using the Time Optimized Pretest (TOP) 2 -C sequence. The data used to q 9 p ( ) generate this report was the Recorded Mode FPWD675 StethoScope data, processed using PD- Plot software (Vers 7.1.56). 1 TVD depths were calculated using the survey data supplied by the field engineer. The GR, TNPH and ROBB curves shown for correlation were obtained from the EcoScope survey run with the StethoScope tool. 1 Color Quality# Description Examples Red , 4 Poor /No Formation Pressure No Seal or Lost Seal Questionable /Fair Formation Building - Not Close to Yellow 7 Pressure Being Stabilized Green 10 Good Formation Pressure Build Up - Stabilized 1 2 1 Section 2 � Pressure Results Summary 1 and Test Point Table 1 1 1 1 1 1 1 1 1 1 Schlumberger U Test Point Table Test Test, Test Test Formali*n Lest-Read Mud Mud; Or rdown TTst Type Nr subsea pressure Buildup, Before` After Mobility EMU pate pale pale ri,drep MOM I 7 110329.62 11032.34 - 10277.79 4949.44 4949.44 6003.84 6004.26 0.01 Type 2 - C I � 6 10330.94 11034.15 - 10279.11 4872.12 4872.12 6012.06 6011.29 1.28 Type 2 - C 10332.41 11036.17 10280.58 4827.17 4827.17 6017.48 6016.66 1.55 Type 2 - C 1 10335.47 1104038 - 10283.64 479922 4797.52 6024.77 6025.55 0.92 Type 2 - C tt J C 73 10341.38 11048.50 - 10289.55 4810.44 4810.44 6028.49 6028.65 1.15 Type 2 - C 2 ' 10345.63 11054.36 - 10293.8 4220.59 4220.59 6030.68 6031.24 0.01 Type 2 - C 10346.53 11055.60 - 10294.7 2239.35 6031.93 6030.88 Tight Test 1 1 i I NORTH SHORE 3 4 , I Schiumberger Test Point Table h est:., .' ', ', . ,.; . :;. TIrr#e.; &; -" Prete. Pretest , r .11 Vi re r : 1 E40 , ' � i , r ttelit re e . Si' p No; � -K G1ate Vo�ir�r� rime ; - p ..:. Variarat�' 1 s :. � ' ` 'CC , .e psra hr` C 9slatrrr�r_, 7 Low mobility, not 24-Mar -201 0.49 1.19 2.11 6.29 153.28 167.42 1 stabilzed, suspect 0 05:00:26 .1 super- charging I 6 ' ' ' , -. Low mobility, moderate 24-Mar-201 0.52 1.19 0.51 5.88 153.03 ' 2.14 60sec slope, possible 0 04:38:15 super- charging i I S , Low mobility, good 24-Mar -201 0.54 1.19 ! 0.53 5.3 152.87 1.04 i .160sec slope, possible 0 04:18:15 I i ,.y ,,,. ' super- charging 1 I 4 ;, ''' ` Good quality, 60sec 24-Mar -201 2.66 7.31 0.5 4.55 152.53 0.2 slope < 1.0, stabilized, 0 03:55:45 ' Radial Time Function 1 11 1 ;' , . ' ,.;,;. Low c sl o ,moderate 0 03:3 :35 0.53 1.25 0.54 3.76 152.19 2.16 60sec slope, possible 0 03:32:35 super- charging I 2' `;.: Trending tight test, still 24- Mar -201 0.51 1.19 0.58 3.13 151.92 221.2 stabilizing 0 03:08:45 1 9 Tight test, not 24- Mar -201 0.54 1.19 0.44 2.69 1 151 57 437.11 ;4 stabilized 0 02:46:15 I I I I I I I I I I NORTH SHORE 3 5 Sehlumberger Test Point Summary Table t Test Types Quantity Type 2-C 6 Tight Test 1 TOTAL 7 Gauges AQAP 7 Runs Color 6 7 Formation Pressure Quality: Color 0 (no pressure) - 10 (best) 10 - 1 7 3 4 2 0 1 Drawdown Mobility Quality: Color 0 (no pressure) - 10 (best) 10 1 7 -- 3 4 2 0 1 1 I NORTH SHORE 3 6 M CI .I 0 V 4) W Schlumberger 1 Inclinomet ry Tables I NORTH SHORE 3 I Source :Supplied Survey table MD ' TVD Devi Azimuth North East Departur Departur Dogleg e e Severity 1 Azimuth ft ' ft Deg Deg ft ft ft Deg Deg /100f 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 I 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 192.18 192.18 0.12 115.74 -0.09 0.18 0.20 116.57 283.82 283.82 0.06 211.92 1 -0.17 0.24 1 0.29 1 125.31 0.07 - 371.21 371.21 0.81 37.99 0.28 0.60 0.66 64.98 0.86 464.19 1 464.17 1.46 72.25 1.16 2.13 2.43 61.43 0.70 511.92 511.88 1 1.69 77.69 1.49 3.40 3.71 66.34 0.48 603.66 603.57 2.17 67.31 12.45 6.32 6.78 ' 68.81 0.52 692.58 692.42 12.45 _ 65.84 3.88 9.61 10.36 68.01 0.31 784.75 784.50 2.49 67.55 5.45 13.26 14.34 67.66 0.04 881.57 881.21 12.98 73.80 6.95 17.62 18.94 68.47 0.51 n 977.41 ' 977.41 976.94 2.63 1- 23 56.58 8.86 21.85 - 23.58 67.93 0.37 I 1072.47 1071.89 2.72 60.26 11.18 25.62 27.95 66.42 0.09 1167.52 1166.86 2.03 56.10 113.24 28.98 1 31.86 65.45 0.73 1264.22 1263.49 2.32 52.74 115.38 31.96 35.47 64.30 0.30 1360.50 1 1359.71 1.79 43.57 17.65 34.55 'r 38.80 62.94 0.55 1457.05 1456.21 1.77 39.40 19.89 36.53 41.59 1 61.43 0.02 1551.25 t 1550.39 1 0.98 1 20.94 21.77 37.74 43.57 60.02 0.84 1647.12 1646.24 1.02 23.13 23.32 38.37 44.90 58.71 0.04 I 1742.04 1741.15 0.69 35.37 24.56 39.03 46.11 57.82 0.35 1838.23 1837.34 0.56 23.43 1 25.47 39.56 47.05 157.23 0.14 1934.35 a 1933.43 1.97 18.63 27.46 _ 40.27 48.74 1 55.71 1.47 2030.60 2029.51 4.64 20.29 32.68 42.15 53.33 52.21 2.77 I 2125.69 2124.05 17.60 22.78 _ 42.09 45.92 _ 62.29 47.49 3.11 2223.46 2220.72 1 9.53 22.17 55.55 51.48 75.74 42.82 1.97 2315.36 2311.02 11.89 24.68 71.20 58.30 92.02 39.31 2.57 9 2413.15 2406.27 14.23 22.90 91.43 67.19 113.46 1 36.31 2.39 2508.06 2498.40 13.56 21.44 112.53 75.79 135.67 33.96 10.71 2604.26 2591.92 13.58 22.15 133.49 84.17 157.81 32.23 0.02 2774.94 2757.95 13.21 22.83 170.02 99.30 1196.89 30.29 0.22 I 2869.28 2849.66 13.93 1 24.56 190.28 108.20 - _I 218.89 29.62 0.76 2965.69 2943.06 14.80 125.75 211.93 118.37 242.75 129.18 0.90 3059.67 3033.69 15.86 25.54 234.33 129.12 267.55 1 28.86 1.13 3156.65 3126.94 16.02 24.58 258.46 140.40 294.13 28.51 0.16 3252.38 3218.91 16.20 23.47 282.72 151.22 320.62 28.14 0.19 I 3348.72 3311.47 16.01 22.89 307.28 161.74 347.25 27.76 0.20 3445.70 3404.62 116.31 21.57 332.27 171.94 374.12 127.36 0.31 3540.99 3496.01 116.60 1 20.13 357.49 181.55 1 400.95 26.92 0.30 1 3635.86 3587.03 16.17 24.31 382.26 191.65 427.61 26.63 0.45 3730.97 3678.49 15.69 125.74 405.91 202.69 453.70 26.54 0.50 3826.75 3770.65 15.89 24.51 429.51 213.75 479.76 26.46 - 0.21 3921.41 3861.77 15.56 24.08 452.89 224.31 505A0 26.35 0.35 4017.60 3954.47 15.40 27.53 475.99 235.48 531.05 26.32 0.17 4113.66 4047.11 1 15.27 29.02 498.36 247.51 556.44 26.41 0.14 4208.78 4138.92 1 15.07 128.46 520.19 259.48 581.32 26.51 0.21 I 4304.47 4231.23 15.46 27.04 542A9 271.20 606.50 26.56 0.41 4400.48 4323.75 15.54 26.34 565.41 282.73 632.16 26.57 0.08 4496.40 4416.18 15.46 25.64 588.45 293.96 657.79 26.54 0.08 4592.35 4508.67 115A2 24.95 1611.54 304.87 683.32 26.50 0.04 4688.35 4601.17 15.60 24.06 634.90 315.52 708.98 26.43 0.19_ 4783.61 4692.98 15.34 27.08 657.82 1326.48 734.38 26.40 0.27 NORTH SHORE 3 8 I 1 Schlumberger Inclinometry Tables I 27.98 .2 0.06 4879.11 4785.07 15.40 27.98 680.26 338.18 759.68 26.43 4974.71 4877.24 15.37 28.04 702.66 350.09 785.04 I 26.48 0.03 5070.77 4969.85 15.46 28.34 725.16 362.15 810.56 26.54 0.09 5166.45 5062.02 15.64 28.03 747.77 374.27 836.20 26.59 0.19 I 5262.13 5154.11 15.88 5357.40 5245.81 15.57 27.45 770.77 , 386.36 862.18 26.62 0.25 27.63 793.66 398.30 888.00 26.65 0.33 5453.52 5338.43 15.44 26.13 816.58 409.92 913.69 26.66 0.14 I 5548.79 5430.16 15.89 5644.73 5522.32 16.40 25.92 839.70 421.20 1939.42 26.64 0.47 25.13 863.77 432.70 966.09 26.61 0.53 5740.37 5614.15 16.05 24.60 888.02 443.93 992.80 26.56 I 0.37 5836.84 5706.95 15.67 25.11 911.94 455.01 1019.15 26.52 0.39 I 5932.37 5798.88 15.87 6028.12 5890.85 16.44 24.70 935.49 465.95 1045.11 26.48 0.21 24.45 959.72 477.02 1071.73 26.43 0.60 6123.63 5982.50 ' 16.28 27.24 983.92 488.75 1098.62 26.42 0.17 6219.71 6074.94 15.35 28.06 1007.12 500.89 1124.80 1 26.44 0.97 I 6315.14 6166.99 15.24 25.57 1029.58 512.25 1149.97 26.45 0.12 6411.26 6259.74 15.19 25.64 1052.33 523.15 1175.20 26.43 0.05 6507.10 6352.31 14.81 23.51 1074.88 533.47 1199.98 26.40 0.40 6603.13 6445.10 15.05 21.82 1097.71 1543.00 1224.67 26.32 0.25 I 6699.09 6537.75 15.14 24.52 1120.68 552.83 1249.62 26.26 0.09 6794.23 6629.69 14.67 28.52 1142.57 563.74 1274.08 26.26 0.49 -- - - - - - 6890.71 6723.04 14.63 29.99 1163.85 575.66 1298.43 26.32 0.04 I 6985.67 6814.81 15.14 30.77 1184.89 588.00 1322.77 26.39 0.54 7081.89 6907.58 15.65 27.96 1207.15 1 600.52 1348.27 26.45 0.53 7176.68 6998.89 15.49 25.42 1229.88 611.94 1373.71 I 26.45 10.17 7272.73 7091.42 15.64 24.73 1253.22 622.87 1399.47 26.43 0.16 I 7369.02 7184.04 16.11 25.08 1277.11 633.96 1425.80 26.40 0.49 7465.02 7276.39 15.57 25.05 1300.85 645.06 1452.00 26.38 0.56 7560.41 7368.41 14.99 24.64 1323.66 655.62 1477.13 26.35 0.61 7656.49 7461.13 15.38 23.64 1346.63 665.91 1502.28 26.31 0.41 I 7751.77 7553.01 15.34 22.49 1369.85 675.80 1527.48 26.26 0.04 7847.74 7645.61 15.14 25.43 1392.89 686.04 1552.67 26.22 0.21 7942.94 7737.55 14.91 28.73 1414.86 697.26 1577.34 26.23 0.24 I 8038.73 7830.16 14.72 8134.39 7922.57 27.82 1436.43 708.87 1601.82 26.27 0.20 15.25 27.67 L 1458.32 720.38 1626.54 26.29 0.55 8230.03 8014.70 15.87 27.96 1481.01 732.35 r 1652.19 26.31 10.65 8325.38 8106.43 15.81 28.07 1503.99 744.58 1678.21 26.34 0.06 I 8421.44 8198.96 15.33 28.03 1526.74 756.70 1703.97 26.36 0.50 8516.11 8290.23 15.51 28.19 1548.95 768.56 1729.14 26.39 0.19 8613.04 8383.60 15.63 29.14 1571.77 781.04 1755.13 26.42 0.12 8708.26 8475.36 15.36 29.29 1593.98 793.46 11780.55 26.46 0.28 I 8803.72 8567.35 15.64 26.04 1616.56 805.29 1806.03 26.48 0.29 8900.14 8660.06 16.27 23.06 1640.67 816.29 1832.52 26.45 i 0.65 8988.22 8743.79 19.86 15.67 1666.44 825.17 1859.55 26.34 4.08 9082.05 8831.47 21.89 9.82 1699.03 832.46 1892.01 26.10 2.16 I 9179.46 8921.67 22.54 0.86 1735.60 835.84 1926.38 25.71 0.67 9276.76 9011.14 23.84 352.26 1773.74 833.47 1959.80 25.17 1.34 9373.40 9098.47 126.86 346.91 1814.37 825.89 1993.50 24.47 3.13 I 9469.05 9182.64 29.87 9564.69 9263.92 33.71 342.14 1858.11 813.69 2028.46 23.65 13.15 338.16 1905.43 796.50 2065.21 22.69 4.02 9660.15 9341.51 37.56 333.23 1956.03 773.53 12103.43 21.58 4.03 9755.52 9415.09 41.43 332.45 2009.98 745.83 2143.89 20.36 4.06 I 9850.39 9484.97 43.69 333.90 12067.24 716.89 2188.02 19.13 2.38 9947.36 9554.67 44.40 332.25 2127.34 686.36 2235.32 17.88 0.73 10043.20 9622.99 44.67 330.18 2186.24 654.00 12281.96 16.65 0.28 10138.90 9690.41 45.76 328.69 2244.72 619.45 2328.62 15.43 1.14 I 10234.81 9757.38 45.66 329.61 2303.66 584.25 2376.59 14.23 0 .10 10330.58 9824.69 45.04 329.26 2362.33 549.60 2425.42 13.10 0.65 1 NORTH SHORE 3 9 Schiumberger Inclinomet ry Tables 10426.57 9892.89 44.41 330.44 2420.73 515.67 2475.05 12.03 T 2.03 � 0.66 10521.75 9960.53 45.02 328.87 1 2478.52 481.84 2524.92 11.00 0.64 10617.42 10028.43 44.54 328.72 1 2536.16 446.92 2575.24 9.99 1 0.50 10713.70 10097.42 1 43.92 328.51 2593.49 1411.95 1 2626.00 9.03 0.64 10809.62 10166.66 43.68 1329.95 2650.53 377.99 2677.35 8.12 0.25 10905.59 10236.45 43.00 3 2707.29 344.57 2729.13 7.25 0.71 10928.81 10253.46 42.84 328.93 2720.84 336.43 2741.56 7.05 0.69 10982.51 10293.01 42.29 330.01 2752.13 317.97 2770.44 6.59 1.02 11078.06 10362.76 43.94 330.75 2808.90 285.70 12823.39 5.81 1.73 1 1 1 1 1 1 NORTH SHORE 3 10 I I I North Shore #3 Hookload Plot It has been learned on previous jobs to reduce Lost Seals and packer damage, before every I depth set to observe the up weight and down weight and set the tool in the mid - range, known as the rotating weight, irrespective of rig type. I Here below we see for this job all the sets had a test weight between the up and down weights. Il Hookload . Klbs 0 50 100 150 200 250 300 350 9000 U I I 9500.00 ' 10000.00 10500.00 I I 11000.00 I 11500.00 I 12000.00 I to if Test Weight -30 ?OQ 500 SO- DN Weight ' Rot Weight I UP Weight 11 Schlumberger 1 North_Shore_3_RM_Header 1 Schlumberger 1 Company: Brooks Range Petroleum corporation 1 Well: North Shore 3 1 Field: Exploratory Rig: Nabors 16E State: Alaska • Q 1 StethoScope675 co g Formation Pressure While Drilling 1 o Recorded Mode Log ii 'al Total depth: 11414ft o K.B. Top Drive 1 c o E Spud date: 28- Feb -10 m G.L. 18.2 ft 2 u °u) o Runs: 6 To 6 w D.F. 51.83 ft _ a (0 -E ° Permanent datum: Mean Sea Level Elev.: 0 ft 1 Z x X Z in 0 Log measured from: Drill Floor 51.83 ft above Perm. datum o c Depth reference: Driller's Pipe Tall 1 cla a - E API serial no. 1867'FSL, 533' FEL Longitude Latitude iM ii_ J 0 50- 029 - 23410 -0C S12,T12N,R12E UM W148.95907916 N70.40644075 Depth logged: 11005 ft To 11392 ft Mag decl: 22.18 deg. Other services: 1 Date logged: 22- Mar -10 To 25- Mar -10 Mag dip: 80.98 deg. D &I, DD, APWD, Scope Bore hole record Casing record 1 Hole size from to Size Density from to 48 in Surface 105 ft 20 in N/A Surface 105 ft 12 25 in. 105 ft 2685 ft 95/8 in. 40 Ihm /ft Surface 2668 ft II f; . in_ 2685 ft 11414 ft 1 Mud record Borehole deviation record 1 Type I from 1 to Min M -x from 1 to WBM Surface 2685 ft 0 deg. 45.76 dec. Surface 2685 ft OBM 2685 ft 9924 ft 13.58 deg 45.76 dec. 2685 ft 11414ft 1 Surface equipment _Software record 1 Unit POU IDEAL Wis 14 Oc 24 Depth system DES -CA SPM 14_1c_03 StethoScope 7.0b21 1 TeleScope 9.2c_02 NORTH SHORE 3 1 2 1 I Schlumberger North S h o re3 l I DOWNHOLE EQUIPMENT I ProVISION 132.2 SN #E5223 I OD 6.90 BladeOD 825 I ROP _ 111.9 Antenna 1 _ 1015 I System 100.4 Antenna / 993 3 I StethoScope 93.3 SN #AC62 OD 6.75 I BadeOD 8 25 ACQG _74.4 R-0 Port 73.6 Annular 1 Paine — i 73.1 Probe _ 66,6 [ l I TeleScope 59,7 SN#y712 I OD 8 41 D &I _ 45.6 GAMMA , ROP TF 30.4 I PNG Mona / 24.6 Neutron N 23.9 Spectrosc — 23.9 Neutron D 23.1 U Neutron F 22.9 EcoScope Receiver 22.1 324 SN #825 Ultrasoni 17.4 OD 6.89 Density S 16.4 I Density L 16.1 Conti nuou 13.9 R-0 Port 13.1 Pressure 12.7 I Gamma Ray o i 12.1 I NSZR SN #12507 W 5.8 OD 6.80 BIT PDC ® — o,0 1.0 1 OD 8.50 Maximum string diameter 8.50 in. I All lengths in Feet I NORTH SHORE 3 13 Schlumberger North Bit Run Summary Run number 6 Bit size in 8.5 _-- -__ - -- Bit start death ft 11005 --- - - - - -- Bit end death ft 11414 --- - - - - -- To• interval I.. sed ft 10964 --- - - - - -- Bottom interval lo. •ed ft 11392 --- - - - - -- Bee in lo.: time 14:50 --- - - - - -- Be•in lo.: date r ---- - - - - -" End I..: time • r --- - - - - -- End I..: date 25- Mar- 10--- - - - - -- Mud data ---- -����� De.th ft 11414 -- _ - - - - -- 05111 OBM --- - - - - -- Mud weight Ib /•al 10.8 --- - - - - -- Solids % 12.6 --- - - - - -- Chlorides PPK WPS 60.2 --- - - - - -- Rm ohm -m @de. F N/A - _- - - - - -_ Rmf ohm- m @de•F N/A --- - - - - -� Rmc ohm -m @de • F N/A --- - - - - -- Potassium • .k N/A --- - - - - -_ Environmental data GR Mud weight Ig /gal 10.8 Bit size in 8.5 Resistivity Neutron porosity Hole Size in 8.5 Mud weight lb/gal 10.8 Temperature degF 169 Mud salinity ppk 60.2 Formation salini • •k N/A Recording rate 1 SEC 2s- RES /GR Recording rate 2 SE s- DEN /NE Filtering GR 3 point Filtering density 3 point Filterin. Neutron 3 •oint Company representative Myers B --------� D &M sersonnel B. warts 1 NORTH SHORE 3 14 I Schiumberger Well Path Plots 1 Ma • View I 2823.39 I I I North - South (ft) I - 2823.39 - 2823 West - East (ft) 2823.39 Cross Section View 0.00 I I TVD (ft) 1 1 ' 10362.76 = - 2823.39 Departure (ft) Plane = 5.8 - 185.8DEG) 2823.39 NORTH SHORE 3 15 Section 4 Pressure vs. Depth Displays • • • • 1 Schlumberger 1 No Sh o re3 P re s _ Depth _ v2 0 FORMATION (AQAP psia) MUD AFTER (AQAP 1:164 ft GRMA (gapi) P28 (ohmm) TNPH (pu) I 4000 5500 0 TVD (MD) 0 150 0.01 100 60 0 _Tight Test 5800 6300 P4OH (ohm m) ROBB (g /c3) 0.01 100 1.65 2.65' 1 2 5 8 MOBILITY (AQAP El I 0.01 100 5 I 1450 Is000l 10300 1111111 i, 111110 ' .. \_ (10992.1) 1 1 f II Al 41 �I pill. 1 1 I 31........= , 06 t6 O 5 0 r ip I 1 0 4 0 4 1 03 03 c' 02 8 i , Jr' 10350 (11060.6) 111 I 1 I !' 1 �� ,, J 1 p I� i 1 ■ IP 10400 1 (11129.1) I NORTH SHORE 3 18 1 I Schlumberger No Sh o re3Time vs Da pt h I C FORMATION (AQAP psia) MUD AFTER (AQAP 1:212 ft DRAWDOWN MOBILITY TNPH (pu) psia) (AQAP and /cp) 4000 5000 r> TVD (MD) ( 60 0 I Tight Test 5500 GRMA (gapi) 6500 0.01 100 BULK DENSITY 1.65 2.65 0 150 TEMPERATURE (AQAP 1 2 5 8 8 degf) TIME VS DEPTH P28H (ohm m) 24- Mar -2010 01:00:00 24- Mar -2010 06:00:00 0.1 1000 100 200 P40 H i 0!1 1001 1 '10300 I t II IiiII t ( 10992.1) 1 11 1 1 1 I ' ' O 5°6 o 7 •- 1 I : 1 09 6 ► (I , Q 4 ® 4 i . � 3 L ( i l oso s ) ' 1 i il • I I L I ( / i 1 .41 t , li I NORTH SHORE 3 19 Schlumberger XY MUD Before vs MUD After 6040.00 OA 0 • 4 i 1 Mud Pressure After (psia) 5 • 6 0 7 I 5990.00 5990.00 Mud Pressure Before (psia) 6040.00 NORTH SHORE 3 20 I I I I • Section 5 1 1 Pretest I Interpretation 1 1 1 1 1 1 1 1 1 1 1 I 21 I I I I I Pressure Vs Time Plots I Test #1 i 11055.60 ft (MD) - 10346.53 ft (TVD) I Tight Test Formation Pressure Quality = Absent 1 I I I I I I I I I 23 Pressure Vs Time Plot : Test #1 Run 6 11055.60 ft (MD) 10346.53 ft (TVD) Schlumberger NORTH SHORE 3 nvestigal Final 0 0 o O 0 0 0 0 h. N O n N LL n W m m n c� Q Q 2 Q U (n I Q W o K w W > ❑ D K W > 0) I a 0 a w N I 0 < a w O Q Q a F W Z I J Q W G ❑ 0 N o F j Q O Z g u) El- r Z Q W I c . ' M , o Alit O N O,2 00 o S \ 100 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 2688 al Mud Before T Type Tight Test yp g Packer TST675 Probe 2150.4 0 Drawdown Start Invest. Gauge AQAP L_ Buildup Start Invest Formation Pressure psia L Read 404.73 psia • End Buildup Invest (Invest) 01612.8 Invest p Last Read (Final) 2239.35 psia G ' ' v Drawdown Start Mud Pressure Before 6031.93 psia w 1075.2 ' ' A Buildup Start Mud Pressure After 6030.88 psia 22 . End Buildup Temperature Before /After 150.93 DEGF / 151.57 DEGF a Pretest Rate/Volume 0.45 c3 /s / 0.54 cc 537.6 T R Mud After 60s Slope (Final) 437.11 psia/m Pressure Variance (Final) 0.44 psia 0 185 229 273 317 361 405 Quality: Tight test, not stabilized Time (sec) 24 OM — I= — NM MO — I• MN M I• 11= MI MI NM — MI NM 1 1 i — — 1 — MI I MI — 1 1 — — — — 1 MN Flow Regime Identification Plot : Test #1 Run 6 11055.60 ft (MD) 10346.53 ft (TVD) (Final) Schlumberger 1e +o� NORTH SHORE 3 1 .IMINIIMIIIIIIIMINIM.....∎ • Q Sherical Derivative pi ■ imd...... ■ m� ■ 11 ��� ■ ■ ■111�� • ❑ Radial Derivative 7p1MIIIIMM■■p■ ■MM 1.111__.■■.11I� �■ 1 1111111 1e + r: � II •I11IIIII•I11IIIII� I F$ •jj .•■■11111.. ■■11111 ;,•; -- ■■ 1e +0 iiiIIIIII III __-!IIIIIIII l=�.....� �i ■ ■r MEMO .M1111111. ��� ■■ ■111 II �,� ] ■� " d��� ■■ ■111 ■■1111111. 1111111 I' rII•■111111I _ � IIHIIIIIIHl 1e +, IIIIIIIIIIIIIIIIII _�� ___ ....u. __. .. I %` i A:111 _ __ 11���. ■111 > � . MM■■■111 ∎MM■■ ■1 I , •• ■■■111 ∎AIM■■ ■111 • MEMM■•■..• ■..1 ' I' ,_ : ■■■.111 =• ■..111 a� M•■ ■11111M•M 1s : j■ ■11111M•■ ■11111 1■■IIIIIII ■■ ^. , N 1 +0 .11u11I1 :.��>a. :?' 11.11111II N =mam: ��'_`- - :::::�Mi.:.: ∎ ■•..■111 ■ v ' 7 MM ■1 ___ ■■ ■ 111_ %' , __ ■ •.111___ ■ ■ •I E•....111M , ~' 011111U•■11111 ��■ ■11111 ���,�� 1■ ■1111111~ ■ ■1111111 ■1111 MII!'1111 ■! 1■11111111■111 .... .. I..._. ..Q __1 -_ ann �. .. ....�MINI.... ___. _ _ _ ENIMIW V J■ ■■111 ∎ �•■ ■■111 ∎M• ■■■111 ��M■■�IIIt.♦ ' J ■■ ■111■111•M■■M111■MMIEMI1 Illinlir - + !!!! 1e 0 =∎ ∎∎ ∎...0111 ∎∎ E...... =IM�..... �MMiiirii ∎MMiiiiii ∎MI�IMIII ��MiNnli le +Or 1e +00 1e +01 1e +02 Delta -Time (sec) 25 Pressure Vs Time Plot : Test #1 Run 6 11055.60 ft (MD) 10346.53 ft (TVD) Schlumberger NORTH SHORE 3 Irhvestigatici Final O N O O •O O V N N N 1 N LL i a w a m ❑ N a n a 0 2 Q U Q N I Q S W V o a W w J > ❑ D c F (0 H a w D a (0 ■ a 4 a w rn Li, ci_ w W w O U J K j a ¢ a I CO Z H J Q I, w ¢ ❑ e, a m 0 - a O O 0 ❑ 5o. , Z 3 2 w Q LL ' O M - Cr, o O Cl, o co') o AO m \ 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 2688 ■ Mud Before T Type Tight Test yP 9 Packer TST675 Probe 2150.4 Drawdown Start Invest. Gauge AQAP Buildup Start Invest Formation Pressure psia Last Read (Invest) 404.73 psia 01612.8 _ s End Buildup Invest ( ) P D r aw d own Start Last Read (Final) 2239.35 psia E Mud Pressure Before 6031.93 psia (,',1075.2 ' ' Buildup Start Mud Pressure After 6030.88 psia 2 %. / End Buildup Temperature Before /After 150.93 DEGF / 151.57 DEGF a_ ..1:1%." Pretest Rate/Volume 0.45 c3 /s / 0.54 cc 537.6 - • Mud After 60s Slope (Final) 437.11 psia/m Pressure Variance (Final) 0.44 psia 1 229 273 317 361 405 Quality: Tight test, not stabilized Time (sec) 26 OM MO INIIII MO MI MO NM I MI MO MS (• I• MB MN MI MN NM 1 1 I I Pressure Vs Time Plots Test #2 ' 11054.36 ft (MD) - 10345.63 ft (TVD) 1 Type 2 -C Formation Pressure Quality = Poor Pressure Still Building 1 1 I 1 1 27 Pressure Vs Time Plot : Test #2 Run 6 11054.36 ft (MD) 10345.63 ft (TVD) Schiumberger NORTH SHORE 3 Investigd Final 1 "A O N 80 O n n r ( • 1 — E a w .. m a 'a ,IT-', a Q in O W f Ni a / J W W <a 7 > d - H 0. /. s _... w 1 ( a W 2 J O> Q Q ■ Q: j a N z 7 J U J Q Ill O U , W Q 0 C7 a ca O F Q ' '' / -' Q 0 I Z Q W 77 .-:,'' 1) ° n .2 0 O N O O .x- 100 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 5064 T T e Type 2 -C Mud Before yP Packer TST675 Probe V Drawdown Start Invest. Gauge AQAP 4051.2 - - - - - - - L. Buildup Start Invest Formation Pressure 4220.59 psia A. - - 8 3038.4 - End Buildup Invest Last Read (Invest) 1401.75 psia I Drawdown Start Last Read (Final) 4220.59 psia Drawdown Mobility (Invest) 0.903 md/cp N Buildup Start Drawdown Mobility (Final) 0.011 md/cp 22025.6 ,. • E nd Buildup Mud Pressure Before 6030.68 psia a Mud Pressure After 6031.24 psia II 1012.8 Mud After Temperature Before /After 151.23 DEGF / 151.92 DEGF :. Pretest Rate/Volume 0.43 c3 /s / 0.51 cc 60s Slope (Final) 221.2 psia /m ?75 221 267 313 359 405 Pressure Variance (Final) 0.58 psia Time (sec) Quality: Trending tight test, still stabilizing 28 IM 11111 MI MI IIM MI MI OM • MN MI IMIN MS NMI OM 111111 111111 • MO • MO MN MI IIIM 11111 MI IIIIIII NM IIIIM EN MN I 11111 NM MI IIIIIII IIMIN NM Flow Regime Identification Plot : Test #2 Run 6 11054.36 ft (MD) 10345.63 ft (TVD) (Final) Schlumberger 1e +07 NORTH SHORE 3 — __..... __ ∎ ■■■ . 0 Radial Derivative M ∎ ■ 111 III. �� ■ ■ ■ ■1El Ill ■ ■ ■ II 1e+ 1. _...■......_.....II.o■ILII.r •■■■••..... IIIII, 111111111 gill ==...uu____� . r J. ∎u•••uI All MIIIIIIM■MIIIIIMMII ___ ■ ■■■■__ ■■ ._� A _' ■11 ∎�M ■1 ∎�••uuu1■ ■1 1 = ' - 4.••. . ■■■ ■i � • OMM■■uIIIIM ;���111 ■11111 M■ ■111111M■U1 ;;: i ` 111111 ■ ■111111 1e + . .hhffhlhh1Vi u hhfhhhhfhlh D NIMMM■■■ ■11 Z4 ti' ■■■■11�MM■■■ ■11 a � •r •• 1e +0 ■ ■•■• r ∎M..... = =ri.00 ■■=moon •1 • 1�MI� UU11 ∎ •••UU..I �MMI ■ � . A MMO 1�MMIN 1 MIIIMMin " '' 11111.111111111.111111111 ..., .. ,_ 11111mu111111m■ ■111111 P!!Il!AIII!ll!IP!!!!fl!PL!l ___ ll o __on_i iii��Nommoss.� ∎o��mossnn� ∎ooismsn 1e +01 1e +00 1e +01 1e +02 Delta -Time (sec) 29 Pressure Vs Time Plot : Test #2 Run 6 11054.36 ft (MD) 10345.63 ft (TVD) Schlumberger NORTH SHORE 3 Irivestigatid Final fi o Ti m N 0, mQ M t7 Co, a v v ■ 7 LL •:. II 0 m s a o n n M a 0 2 d U W < �I Q W W O > cc E i > (0 0 a w a s O • F W Q / .., W Z F 0 Q Q W Q O 0 �i I a N 0 1- / s O 0 2 a Z 3 N LL LL / ' � Q , . , O m 0 0 0 o 1 r0 n , 3 1 00 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 5064 Test Type Type 2 -C Mud Before YP Packer TST675 Probe 9 El V Drawdown Start Invest. Gauge AQAP 4051.2 _ _ ,- - 0 Buildup Start Invest Formation Pressure 4220.59 psia m - - Last Read Invest 1401.75 psia g3038.4 - • % ' End Buildup Invest ( ) P Last Read (Final) 4220.59 psia N �� ° Drawdown Start Drawdown Mobility (Invest) 0.903 md/cp oi 2025.6 AtIt End Buildup Mud Pressure Before 6030.68 psia a Mud Pressure After 6031.24 psia 1012.8 • Mud After Temperature Before /After 151.23 DEGF / 151.92 DEGF „. Pretest RateNolume 0.43 c3 /s / 0.51 cc 60s Slope (Final) 221.2 psia /m 0 Pressure Variance (Final) 0.58 psia 175 221 267 313 359 405 Time (sec) Quality: Trending tight test, still stabilizing 30 IIIM OM • • INIB IIIIN 111. IIM 111. MI MN 1111. I NM UM • IIIIII I MN Pressure Vs Time Plots Test #3 t 11048.50 ft (MD) - 10341.38 ft (TVD) Type 2 -C Formation Pressure Quality = Fair ' Moderate 60sec Slop e = 2.1 1 1 t 31 Pressure Vs Time Plot : Test #3 Run 6 11048.50 ft (MD) 10341.38 ft (TVD) Schlumberger NORTH SHORE 3 nvestig Final - O O OQ 8 tkit- O N O O r r r t0 LL 0. u m N - - . n o. . - - ' a 0 2 .51 7 u N O • 0 a' i y E '&2 W • d d 0 _._. __.. ti a N o I- u u J O> 0 ¢ a A u • Z 1- - a W < 0 0 a ( 0 r a D 0 00 z N LL z a a ± io O O O OQ O 100 200 300 400 Detail Pressure Plot Final Time (sec) Tool Type FPWD675 5049 ��. M Before Test Type Type 2 - C V Drawdown Start Invest 75 Probe . Gauge Packer TST675 AQAP 4541.8 = J +�+ - A Buildup Start Invest Formation Pressure 4810.44 psia To L Read Invest 3771.04 psia 24034.6 End Buildup Invest (Invest p Last Read (Final) 4810.44 psia a� 17 Drawdown Start Drawdown Mobility (Invest) 3.35 md/cp (SS) Buildup Start Drawdown Mobility (Final) 1.147 md/cp (SS) 23527.4 '� ' End Buildup Mud Pressure Before 6028.49 psia a ', Mud Pressure After 6028.65 psia III Mud After Temperature Before /After 151.74 DEGF / 152.19 DEGF MEI 3020.2 Pretest RateNolume 0.42 c3 /s / 0.53 cc 60s Slope (Final) 2.16 psia /m 2513 135 189 243 297 351 405 Pressure Variance (Final) 0.54 psia Time (sec) Quality: Low mobility, moderate 60sec slope, possible super- charging 32 • II — — — I= MO — • — — — — — MI NM • IIMIN11111111111111 MI IMINIIIMIIIIIMIMMIll 111.1 gill MN INN MINIM= Flow Regime Identification Plot : Test #3 Run 6 11048.50 ft (MD) 10341.38 ft (ND) (Final) Schiumberger 1e+Of NORTH SHORE 3 _ • Spherical Derivative MNIMIUMM• ■Inli■MION■ . — O Radial Derivative INEMM■ ■■ 111111MNIMIIM■li _ _ ■ ■■ _M=.0111. III •�ii1 M III ■IIIII 1 e+O ,�• ', �`• ■ ill III ■■ ,�~ 14:1 ; ,lllllll l cu ■ 1 is 41_1 6 .1 ci) ti ',l p 1 e +04 � N I r_I_ EL) II co y I. 4,,, I wr1 ,' I C . Ir . 1 e+0° _ n 1 i . n g ' ; Iii• Ali -. la rr■ �Ir1 ■ 1e +02 ii 1e +00 1e +01 le +02 Delta -Time (sec) 33 Pressure Vs Time Plot : Test #3 Run 6 11048.50 ft (MD) 10341.38 ft (TVD) Schlumberger NORTH SHORE 3 I ',;, r o � O N p to fir ii LS N LL p W t0 m o v _Q a _ • a D a a 5-i- a a n cl . T. W n 1 Q o ` L W > 0 7 0) f D a W 4 W a g ) , - � _ ___._ _.. _.... _.... M - d 7 __. ' ) a n L J � W J Q Q 1 W z 7 -' U ,p W Q H W , < ] d Q , ii CC • , 0 a n 9 Z 0_ Q , / L o J o A N V N r o r o 'Ni OF V0 N 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 4815 T estT e Type 2 -C Mud Before YP Packer TST675 Probe V Drawdown Start Invest. Gauge AQAP 4812 LI Buildup Start Invest Formation Pressure 4810.44 psia f0 End Buildup Invest Last Read (Invest) 3771.04 psia 04809 w ,,, "'''"�' � i � l p Last Read (Final) 4810.44 psia D rawdown Start a) Drawdown Mobility (Invest) 3.35 md/cp (SS) n4806 Buildup Start Drawdown Mobility (Final) 1.147 md/cp (SS) 2 • End Buildup Mud Pressure Before 6028.49 psia o_ Mud Pressure After 6028.65 psia • 4803 ® Mud After Temperature Before /After 151.74 DEGF / 152.19 DEGF Pretest RateNolume 0.42 c3 /s / 0.53 cc 60s Slope (Final) 2.16 psia /m 4800 ° Pressure Variance (Final) 0.54 psia 305 325 345 365 385 405 Time (sec) Quality: Low mobility, moderate 60sec slope, possible super- charging 34 •• MB MI MI I OM MI OM MI NM • MI MO MN 1 Pressure Vs Time Plots Test #4 11040.38 ft (MD) - 10335.47 ft (TVD) Type 2 -C Formation Pressure Quality = Good t Stabilized — 60sec Slope = 0.2 I 1 1 1 1 35 Pressure Vs Time Plot : Test #4 Run 6 11040.38 ft (MD) 10335.47 ft (TVD) Schlumberrger NORTH SHORE 3 Investigation I Final O O o0 3 0 0 0 0 O N O 0 1-.. r •-.. • ... -r----L . - N LL p_ W t0 c0 M < i (n d I U • w Q O w w 1 , ,::::...:: === ,,,,,).,_,, x 4 w to w a w re w .... U) a R4 > 0 Q — Ti ,2 J < w Z ,. < U ❑ W u- a cm d r a 0 _ < ca D < 0 D • 3 N LL z • a O :0 0o0 100 200 300 400 5076 Detail Pressure Plot (Final) Time (sec) Test Type F P W D 6 5 Mud Before C 7 Packer TST675 Probe '� " V Drawdown Start Invest. 4597 Gauge AQAP 0 Buildup Start Invest Formation Pressure 4799.22 psia m ci a4118 . End Buildup Invest Last Read (Invest) 4795.61 psia Last Read (Final) 4797.52 psia Drawdown Start Stt Drawdown Mobility (Invest) 2.225 md/cp (SS) w Buildup Start Drawdown Mobility (Final) 0.922 md/cp (SS) 2 3639 End Buildup Mud Pressure Before 6024.77 psia a Mud Pressure After 6025.55 psia 3160 • Mud After Temperature Before /After 152.19 DEGF / 152.53 DEGF Pretest Rate/Volume 0.36 c3 /s / 2.66 cc ;; 60s Slope (Final) 0.2 psia /m 2681 Pressure Variance (Final) 0.5 psia 175 223 271 319 367 415 Time (sec) Quality: Good quality, 60sec slope < 1.0, stabilized, Radial Time Function 36 111. 11.1 MN IIIMI • I INII 1 IIIIII = MN NM • I IIIIII N NM • • MI I MI MII N MI IIIIII M IIM Mil Flow Regime Identification Plot : Test #4 Run 6 11040.38 ft (MD) 10335.47 ft (TVD) (Final) Schlumberger 1e +o4 NORTH SHORE 3 Radial Time Function Plot 1 6000 .0 Spherical Derivative — T - _ ❑Radial Derivative ""' �s'■.� 1111 • I 11 � 1 1e +0^ W� .- .� �� �., s 7 i N 12 _ r �� i r=0 1 , -- `\ • 0) r p 1 e+02,, r A, � • cn Et co Alb 0- I r ■ N 400(1 • � \. '1 D .V III w cn Air ynt, ��� 1 e +01 LJ a �� i ti ❑ ,1�. ` �1,1�1 1e +00 1e+00 1e +01 le +02 O Delta -Time (sec) Slope on Spherical 0.474 Slope on Radial 0.030 2000 2.12 0 Radial Time Last Buildup Pressure : 4797.52 psia Extrapolated Pressure : 4799.22 psia Horiz. Mobility Thickness : 0.553 md.ft/Cp Radial Slope : -57.94 37 Pressure Vs Time Plot : Test #4 Run 6 11040.38 ft (MD) 10335.47 ft (TVD) Schlumherger NORTH SHORE 3 I �, LO U • LL II d y 0 / 1 II EL n a o II O < • 3 2 < o• N I Q o o w W 'I g w ✓ uJ a ( • w a u CC i o _ _... _..... _. _ _._.... L N LL II II II O w Q i E 1 II VI Z J < LU 11 • 0 O II 0 a N 7 0 O o 3 'i O 0 O Z i w LL Z < LL N m rn rn ao ai m co o co co O N 7 NQ N 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 Detail Pressure Plot Final Time (sec) Tool Type FPWD675 4800' P a c t Type T e 2- C Mud Before yP Type Packer TST675 Probe 0 Drawdown Start Invest. Gauge AQAP 4799 ( Q Buildup E nd Build Start Invest Invest Formation Pressure ( ) 4799.22 psia p ' Last Read Invest 4795.61 sia n4798 t i , ��I� Last Read (Final) 4797.52 psia 2 MIN T � i'i R v Drawdown Start Drawdown Mobility (Invest) 2.225 md/cp (SS) I N .0 d ' , I � � lll.,� i,i L�,..11 i..1 11lij'IiiiiiY1�{ 1{11 1111 A Buildup Start Drawdown Mobility (Final) 0.922 md/cp (SS) 24797 Er End Buildup Mud Pressure Before 6024.77 psia a 1 r,.� i Mud Pressure After 6025.55 psia 4796 WI■ ® Mud After Temperature Before /After 152.19 DEGF / 152.53 DEGF 1 + i1 ' � Pretest Rate/Volume 0.36 c3 /s / 2.66 cc 60s Slope (Final) 0.2 psia /m 4795 215 255 295 335 375 415 Pressure Variance (Final) 0.5 psia Time (sec) Quality: Good quality, 60sec slope < 1.0, stabilized, Radial Time Function 38 INN MN MI N I• N in I! — • — I — — i MO M ! = I I I I Pressure Vs Time Plots I I Test #5 I 11036.17 ft (MD) - 10332.41 ft (TVD) I I Type 2 -C Formation Pressure Quality = Fair I Stabilized — 60sec Slop e = 1.0 I I I I I I I I I 39 Pressure Vs Time Plot : Test #5 Run 6 11036.17 ft (MD) 10332.41 ft (TVD) Schlumberger NORTH SHORE 3 Investigd Final 8 N o o I r r IIIII LL • n n _ N Q 0 a c' Q 0 M C a l U W Q i Q / J I a • w ~ a y g a CC m a m JO Q Q K 7 rn LL ~ W Z F -' Q g 0 W F < cD o a N 0 W a • Q p 3 N LL a • LL ■ a 1 I ■ o 1 00 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 5115 1 T estT e Type 2 -C Mud B efore YP Packer TST675 Probe 0 Drawdown Start Invest. Gauge AQAP 4716.8 Buildup Start Invest Formation Pressure 4827.17 psia m Last Read (Invest) 4134.73 psia 04318.6 II End Buildup Invest ( ) P Last Read (Final) 4827.17 psia Drawdown Start N Drawdown Mobility (Invest) 0.655 md/cp (SS) A Buildup Start Drawdown Mobility (Final) 1.554 md/cp (SS) m3920.4 r, 2 In End Buildup Mud Pressure Before 6017.48 psia 0 Mud Pressure After 6016.66 psia ll Mud After 3522.2 Temperature Before /After 152.46 DEGF / 152.87 DEGF Pretest RateNolume 0.45 c3 /s / 0.54 cc 60s Slope (Final) 1.04 psia /m 3124 Pressure Variance (Final) 0.53 psia 140 194 248 302 356 410 Time (sec) Quality: Low mobility, good 60sec slope, possible super- charging 40 • MN • i MB — — — • — — — — EN — UM NM NM MN MN 111111111 MI I NM IIIIII MN MI IIIM OM MN S • MIN MB IIIIII OM Flow Regime Identification Plot : Test #5 Run 6 11036.17 ft (MD) 10332.41 ft (TVD) (Final) Schlumberger 1e105 NORTH SHORE 3 O Spherical Derivative — ❑ Radial Derivative ` - - - MI IN ■ , ,. • F4 S" 4 • 1e +04 ♦ - -11 111 Cl, ■ • ,r NW' .. .411 111 mug �► ■ to A' ii E 4~ a • ti r ih 1e +0 "c g • Iii rll III _li r �� • r' . . J • 1e +02 1e+00 1e +01 1e+02 Delta -Time (sec) 41 Pressure Vs Time Plot : Test #5 Run 6 11036.17 ft (MD) 10332.41 ft (TVD) Schiumberger NORTH SHORE 3 U O `DO to A N r n V O a 0 m m 0 O d Q ¢ O a ' U a a O w a c � a a U N O Ij N a F a w • 0 II • O a r, Z 3 o N R V V o o co n o r N. O M :2 MO (+�') 130 140 150 160 170 180 190 200 210 220 230 240 Detail Pressure Plot Final Time (sec) Tool Type FPWD675 4830 i • • Mud Before Test Type Type 2 - C 11 �l1 __, Packer TST675 Probe Drawdown Start I nvest. Gauge AQAP 4829 IIIIIIIIIIIIIIIIMIlli , Buildu sta Invest Formation Pressure 4827.17 psia Last Read (Invest) 4134.73 psia 04828 Last Read (Final) 4827.17 psis . E nd Buildup Invest ( ) p D rawd o wn Start Drawdown Mobility (Invest) 0.655 and /cp (SS) 2 2 impgiginimpripm,71. I Buildup Sta rt Drawdown Mobility (Final) 1.554 and /cp (SS) 04827 �flm 1 rI IJ I'r ' " 'r 1' y f �� f ` Iy� I�,I Mud Pressure Before 6017.48 p sia �I� 1P'�,�I ' 1 I,I I.JiJIti�ol II I■ Llllllf■�il � � III End Buildup Mud Pressure After 6016.66 p sia 4826 �t p it u i fll�l Mud After Temperature Before /After 152.46 DEGF / 152.87 DEGF Pretest RateNolume 0.45 c3 /s / 0.54 cc 4825 L atl, tlliiiJll16Y Pressure Variance (Final) 0.53 psia 310 330 350 370 390 410 Time (sec) Quality: Low mobility, good 60sec slope, possible super- charging 42 MIN INE • I• • • 1 1 1 Pressure Vs Time Plots ' Test #6 ' 11034.15 ft (MD) - 10330.94 ft (TVD) ' Type 2 -C Formation Pressure Quality = Fair ' Stabilized — 60sec Slope = 2.1 I 1 ' 43 Pressure Vs Time Plot : Test #6 Run 6 11034.15 ft (MD) 10330.94 ft (TVD) Schlumher er NORTH SHORE 3 9 Investig4 Final 8 8 00 0 O N O O N LL n W m N E. 2_ m a O 2 7 71 e e°9'999-9e—e—.9—e Q' at W O 7 d K LT- w q K C w a 1 w ca a J W N J a ¢ a I (n Z 0 Q ~ Q 0 ❑ U' W ' < ❑ 0 a N 0 1- a D < 0 D 0 m LL Z a Q LL u', 0 O O 00 100 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 5222 T est Type T e 2- C Mud Before YP Type Packer TST675 Probe 4778.8 = – Drawdown Start Invest. Gauge AQAP Buildup Start Invest Formation Pressure 4872.12 psia —.co Buildup Invest Last Read (Invest) 3946.86 psia 04335.6 Last Read (Final) 4872.12 psia D rawdown Start V Drawdown Mobility (Invest) 2.865 md/cp (SS) y A Buildup Start Drawdown Mobility (Final) 1.275 md/cp (SS) 23892.4 r ..., Mud Pressure Before 6012.06 psia a End Buildup Mud Pressure After 6011.29 psia 3449.2 III Mud After Temperature Before /After 152.64 DEGF / 153.03 DEGF Pretest Rate/Volume 0.44 c3 /s / 0.52 cc 60s Slope (Final) 2.14 psia /m 3006 Pressure Variance (Final) 0.51 psia 140 194 248 302 356 410 Time (sec) Quality: Low mobility, moderate 60sec slope, possible super- charging 44 MI NM MI IIMI MI IIIIII IIIII M OM OM NM 111. OM MB MI MI MO M = M OM MI N 1111111 EN MI NM ON 1.11 NM NE MN M M N MII Flow Regime Identification Plot : Test #6 Run 6 11034.15 ft (MD) 10330.94 ft (TVD) (Final) Schlumberger 1e +0 NORTH SHORE 3 ■ • Spherical Derivative - IMMM■ ■•E■ - ■ 0 Radial Derivative M�■EN_ 1 e +0 ```,`�� ♦♦1 � rj i N �� • io ��� tdI ;w, P Li 1e +0 1e +00 1e +01 1e +02 Delta -Time (sec) 45 Pressure Vs Time Plot : Test #6 Run 6 11034.15 ft (MD) 10330.94 ft (TVD) Schlumberger NORTH SHORE 3 ax) 1_ m N m m m 0 0 N W ' 00. W N O n '0. 1- 0 Q .� Q < Q)1 0 - K W W > CD D d w ,/ r ,) o y a L it w _-- - 1 f I 1 I CI) a J • D W W _1 II > Q Q Q- 12 q , n z_ r -' 0 IA 1 0 fo L < 0 0 0 • t o W V 6 1 0 - < ri CD � < 0 �r D 3 u) u - �. FF. LL n A CO CI, Ol 0 g o N ■ 130 140 150 160 170 180 190 200 210 220 230 240 250 260 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 4874 111 T est Type Type 2- C Mud Before YP YP Packer TST675 Probe Drawdown Start Invest. Gauge AQAP ■ 4872'r Buildup Start Invest Formation Pressure 4872.12 psia if • End Buildup Invest Last Read (Invest) 3946.86 psia 04870 Last Read (Final) 4872.12 psia D rawdown Start 22 0 Drawdown Mobility (Invest) 2.865 md/cp (SS) n4868 A Buildup Start Drawdown Mobility (Final) 1.275 md/cp (SS) End B uildup Mud Pressure Before 6012.06 psia , 1111 a_ Mud Pressure After 6011.29 psia II Mud After 4866 Temperature Before /After 152.64 DEGF / 153.03 DEGF Pretest Rate/Volume 0.44 c3 /s / 0.52 cc 60s Slope (Final) 2.14 psia /m 4864 Pressure Variance (Final) 0.51 psia 300 322 344 366 388 410 Time (sec) Quality: Low mobility, moderate 60sec slope, possible super- charging 46 I I III. N MI NE MIN MI 1111111 UM MN MO I NM MI 111111 OM IMI 1.111 1 1 1 1 1 Pressure Vs Time Plots Test #7 ' 11032.34 ft (MD) - 10329.62 ft (TVD) 111 Type 2 -C Formation Pressure Quality = Poor ' Not Stabilized — Still Building 1 1 1 1 1 1 1 1 ' 47 Pressure Vs Time Plot : Test #7 Run 6 11032.34 ft (MD) 10329.62 ft (TVD) Schlumberger NORTH SHORE 3 Inv +stigal Final I 0 0 8 0 0 0 O N O O N- n n II ■ l0 LL 1� ■ Q W N N - - - a 0 n a Z a o R a a N a w O rn o it F rn a rn 1- 7 o w g W n ,, W a w W w ' ... 2 -i a D CC O < < 11 t / a a rn z ' -' 0 Q 0 a W K Q O 0 / !� ', w - 1- a c CD 2 0 (n o 1- a D 3 2 a / a , / I f —rj-J-1 \ 0 { 00 „ 100 200 300 400 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 5901 T Type Type 2- C Mud Before YP YP Packer TST675 Probe c X Drawdown Start Invest Gauge AQAP 4867.2 _ ° [� Buildup Start Invest Formation Pressure 4949.44 psia m o�o � ��y' End B uildup Invest Last Read (Invest) 1897.65 psia 83833.4 Last Read (Final) 4949.44 psia V Drawdown Start Drawdown Mobility (Invest) 0.594 md/cp ' m imprr7_ .; A Buildup Start Drawdown Mobility (Final) 0.012 md/cp n2799.6 Mud Pressure Before 6003.84 psia a End Buildup Mud Pressure After 6004.26 psia 1765.8 II Mud After Temperature Before /After 152.69 DEGF / 153.28 DEGF Pretest RateNolume 0.41 c3 /s / 0.49 cc A+ 60s Slope (Final) 167.42 psia/m 73 175 222 269 316 363 410 Pressure Variance (Final) 2.11 psia Time (sec) Quality: Low mobility, not stabilzed, suspect super- charging 48 • 11111.1 ME IMI 111111 11.1 MN • 111•11 11.1 MI • 11110 NM NMI UM MIN MIN MIII MI MO = 11111 M i M • = S • MN MI all • OM MI MI Flow Regime Identification Plot : Test #7 Run 6 11032.34 ft (MD) 10329.62 ft (TVD) (Final) Schlumberger 1e+07 NORTH SHORE 3 I _ Spherical Derivative t•ni■■ — ❑ Radial Derivative iii ■■ �� • h ul l ■„" - _ 111111 =liii . 111111 ' ,�\\�O. 1e +0C � � � OEM 1e +0e, III r� + plillilll .111MME V 41 - �M■■ i i p r_ _ : . : i N „ 0 ;$ r.: li , . I 4 gt 44 ; , -7.!: ;' ■ • 1 e+02. L • 1e +01 1e +00 1e +01 1e +02 Delta -Time (sec) 49 Pressure Vs Time Plot : Test #7 Run 6 11032.34 ft (MD) 10329.62 ft (TVD) Schlumberger NORTH SHORE 3 r u' h"" N O N N N O N Z ✓ V V w i 4 0. w m m 0 n m < 0 2 Q s U a)t UQ W (5 • J w Lu w 9 a w 1-- a _.... _.. _.... LL a a D a: D Q 2 a) a W V) J U � , j ' , > I— < < a A) Z 7 —' U F J Q o o w G 0 a N 0 F 4 0 0 0 7 0 U ( i Z 3 � W Q 0 N N N w c m o A O O O O 170 180 190 200 210 220 230 240 250 260 270 280 290 Detail Pressure Plot (Final) Time (sec) Tool Type FPWD675 4975 Test Type Type 2 C Mud Before yP yP Packer TST675 Probe X Drawdown Start Invest. 4960 Gauge AQAP 0 Buildup Start Invest Formation Pressure 4949.44 psia •.�^'-- — Last Read a sea1897.65 psia End Buildup Invest (Invest) P 04945 Last Read (Final) 4949.44 psia Dr awdown Start � Drawdown Mobility (Invest) 0.594 md/cp N A Buildup Start Drawdown Mobility (Final) 0.012 md/cp 924930 92 � End Buildup Mud Pressure Before 6003.84 psia tL Mud Pressure After 6004.26 psia 4915 I Mud After Temperature Before /After 152.69 DEGF / 153.28 DEGF Pretest Rate/Volume 0.41 c3 /s / 0.49 cc 60s Slope (Final) 167.42 psia/m 4900 Pressure Variance (Final) 2.11 psia 390 394 398 402 406 410 Time (sec) Quality: Low mobility, not stabilzed, suspect super- charging 50 — • • I• • • I• • • • r I• • • • • • • • I I I 1 Section 6 1 I Reference Data 1 1 1 1 1 • • 1 1 1 1 • I 51 I I Test Type Ranges StethoScope Fixed Rate Type 0 Pretests A: Mobility>0.10 I B: Mobility> 1.00 C: Mobility > 10.0 D: Mobility> 100 I StethoScope 675 & 825 Updated: 12- Dec -04 Pretest 1 Pretest 2 Total I Type Rate Volume Duration Rate Volume Duration Duration Q1 V1 T1 Q2 V2 T2 T I (cc /s) (cc) (s) (cc /s) (cc) (s) (s) A 0.2 4.5 750 0.2 0.5 450 1200 B 0.3 5 116 0.3 6 184 300 I C 0.5 9.5 119 1 14.5 181 300 D 1 9.5 69 2 14.5 111 180 I StethoScope 475 (tool currently in Field Test) Updated: 2- Mar -07 Pretest 1 Pretest 2 Total I Type Rate Volume Duration Rate Volume Duration Duration Q1 V1 T1 Q2 V2 T2 T (cc /s) (cc) (s) (cc /s) (cc) (s) (s) A 0.2 4.5 750 0.2 0.5 450 1200 B 0.3 5 116 0.3 6 184 300 III C 0.5 9.5 119 1 14.5 181 300 D 1 9.5 119 2 14.5 181 300 I Pretest 2 I Pretest 1 Q2 - V2 A Q1 - V1 I Drawdown Q2 I I ■ Time 0 I T1 111.1 T2 ■ • T ■ I I 52 I Time Optimized Pretest "TOP" The TOP (Time Optimized Pretest) reduces NPT by increasing formation pressure - while - drilling data acquisition efficiency. This unique system enables the StethoScope* service to make the right test -first time measurement in a wide variety of formation permeabilities and mud overbalances, known or unknown, within a brief drilling- transparent period of 5 min. Unlike fixed -mode pretests, in which the rate, volume, and duration of each drawdown and buildup sequence are fixed, the TOP intelligence adjusts the sequence to the conditions encountered. This ' capability allows stabilized formation pressure measurements to be acquired under conditions in which fixed -mode pretests have the potential to be inconclusive due to heterogeneous formations, depletion or unknown overbalance, all within a 5 minute period. Type 1 Pretest Diagram P Sets • Flow' ineExpansion Tod Retracts / Fluid Dra�nr -dod�m Fluid DranNdovun ' (Investigation) (Measurement) Sandface Build -up 2 Ressure Build -up 1 / 4P, F� b ' T > < T < Ts 1 t t, Total Time allocated for Pressure Measurement: T, Type 1 Pretest Diagram Total Duration 5 mins ' 53 I Type 2 Pretest Diagram P 1 801 - -13b 14 881 f T 810 7 814 Ap 816 820 , t g 817 4p 824 I -- 825 ;30 _ - i - H -� 834 l I 835 I AP it 840 I 8 44 T -- 850 _ H �� 860 I <Ap I I 855 __ _ h_ -! � ► 864 869 870 I 800 1 I I I 1 854'" I i i i i 868 11. J., 1. J...6, J..l. .i,.t..L '' t Type 2 Pretest Diagram Total Duration 5 mins I Time Optimized Pretest Table I Time Optimized Pretests I Type '1' & Rate 1 Volume 1 Time 1 Rate 2, 3, Volume 2, 3, Time 2, 3„ Total Time '2' etc etc etc.. (cc /s) (cc) (s) (cc /s) (cc) (s) (min) I 1 - A 0.5 as needed per test computed computed per test 5 1 - B 0.3 as needed per test computed computed per test 5 I 2 - C 0.5 as needed per test computed computed per test 5 2 - D 0.3 as needed per test computed computed per test 5 I 54 I I I I Basic Data Channels Associated with StethoScope Tool 1 Channel I Description I AQAP Quartz Gauge Pressure I PRESS_SMO Smoothed Build Up Pressure, PD -Plot AQAP_F Quartz Gauge Pressure Filtered I AQAT Quartz Gauge Pressure Temperature I FSAP Strain Gauge Flow Line Pressure FSAP_F Strain Gauge Flow Line Pressure Filtered I FSAT Strain Gauge Flow Line Temperature ASAP Strain Gauge Annulus Pressure I ASAP_F Strain Gauge Annulus Pressure Filtered ASAT Strain Gauge Annulus Temperature I PFTV Pretest Volume C3 - Old Name by PDPIot I PTVOL Pretest Volume C3 - New Name by Ideal I PFTN Pretest Motor Turns PFMS Pretest Motor Speed 1 HFMS Hydraulic Motor Speed RPS I I I I I 55 I StethoScope* 675 DRILLING & MEASUREMENTS Formation Pressure StethoScope*, 6 -3/4 IN. OD I Mechanical Specifications StethoScope* 675 I GENERAL DRILL COLLAR NOMINAL OD 6- API Tolerances MAXIMUM DIAMETER 8 -1/4" (9 -A" optional) I MAKE UP LENGTH 31.0 ft (w /o saver subs) TOTAL TOOL WEIGHT 2,800 lbs 6.906 TOP THREAD CONNECTION 5 -1/2 FH Box (6.906" OD) I I BOTTOM THREAD CONNECTION 5-1/2 FH Box (6.906" OD) MAX OPERATING TEMPERATURE 300 °F / 150 °C 6.250 I 1 BENDING MAX TOOL CURVATURE Rotating: 8 deg /100 ft I (higher dogleg rates are possible provided RPM is controlled 221.3 below 60 RPM, contact your service representative) Sliding: 16 deg /100 ft 1500 MAX SHOCK COUNTS 30 min at shock level 3 (50g3 294.2 MAX CUMULATIVE SHOCK DURATION 200,000 shocks above 501 372.0 AXIAL MAXIMUM JARRING LOAD 330,000 lbs I MAXIMUM WEIGHT ON BIT 74,000,000 / L Ibf A (L= distance between stabilizers in ft) I Wear band 1 6.906 • HYDRAULICS I MAX OPERATING PRESSURE 25,000 psi (27,000 psi on request) I 6.250 MAX app DIFFERENTIAL PRESSURE (IP / AP) 6,000 psi I FLOW RANGE 0 — 800 gpm (1000 gpm Optional) 8.25 in t MAXIMUM SAND CONTENT 2% I Stabilizer OD LCM tolerance No limit I PRESSURE DROP 58,620 1 Press.Drop (psi)= Mud Weight (ppg) x Flowrate z)gpmlz /C I 6.906 I TORQUE MAXIMUM ROTARY 12,000 ft Ibf I MAXIMUM TORQUE 40,000 ft -Ibf CONNECTION MAKE -UP TORQUE 5 -1/2 FH Pin - 22,000 ft-lbf (+/- 1,000 ft -lb) 6 -3/4 IN. OD I 1 An asterisk Ii is used to denote a mark of Schlumberger Schlumberger I 56 I 1 1 Stethoscope 675 DRILLING & MEASUREMENTS I Formation Pressure StethoScope *, 6 -3/4 IN. OD i Measurement Specifications StethoScope* 675 GENERAL I TYPE Probe / Pretest GAUGES Advanced COG - High Precision Crystal (primary) Strain gauge (secondary) I POWER SUPPLY Batteries MWD Turbine Power TOOL ACTIVATION PROTOCOL Downlink (Mud flow) 1 PROBE I 2.25 in. OD x 0.56 in. ID x 3/4 in. stroke DIAMETER REACH CONTACT FORCE 10 %z" max (11 %z "max with 9-1/4" Stabilizer) 2,500 Ibs max I PRETEST VOLUME 0 to 25 cc fully adjustable I DRAWDOWN RATE 0.1 to 2.0 cc /s DELTA PRESSURE 6,000 psi max ROP IN RANGE 0 to 20,000 psi with ACQG (25,000 psi optional) I ACCURACY (psi) ± [2.2 + 0.01 % of reading] RESOLUTION MEMORY 0.01 psi resolution at 1 s sample rate RESOLUTION REAL-TIME 0.1 psi REPEATABILITY 0.1 psi following a 5,000 psi negative step r MEMORY ACQUISITION RATE 16 Hz I o MEMORY CAPACITY BATTERY CAPACITY 50 pretests of 5 mins. duration 150 pretests —1 cc /s @ 3200 psi & 125 °C Setting _ � _Probe ' piston APWD measurement capability RANGE 0 to 25,000 psi ACCURACY (Between tests) ± [2.2psi + 0.01% of reading] - ACQG I ACCURACY (During Pretest) ± 0.1% of full scale - Strain Gauge Downhole r 1 6 -3/4 IN. OD 1 An asterisk (1 is used to denote a mark of Schlumberger Schlumberger 1 1 57 rn LO o a) • imp }' o CD =mow maw En 11111 E ME M 11111 ME 1.1. MO ME En ME M O OM ME CO N 0 Z I I HAWBURTC t 1 Sperry Drilling I I END OF WELL REPORT I North Shore 3 Brooks Range Petroleum Corporation I i' t lit f i ' 11 it . , ..: ' , . ..,.. . .- ._-:t.-_,... : . 4 -ii a 4} z I . w i 1 Surface Data Logging Services 1 I I I apt -o-bc( HALLI B U RTO N I Sperry Drilling TABLE OF CONTENTS 1. General Information ' 2. Daily Summary 3. Morning Reports 4. Bit Record ' 5. Mud Record 6. Show Reports ' 7. Formation Tops 8. Days vs. Depth Digital Data including: Gas Ratio Log Engineering Log Combination Mud Log ' Log Viewers ADI backup file End of Well Report in PDF format 1 Brooks Range Petroleum Corporation 1 HALLIBURTON I S perry Drilling ' GENERAL WELL INFORMATION Company: Brooks Range Petroleum Corporation Rig: Nabors 16E Well: North Shore 3 Field: Beechey Point ' Borough: North Slope Borough State: Alaska Country: United States API Number: 50- 029 - 23410 -0000 Sperry Job Number: AK -AM- 7104245 1 Job Start Date: 1- Mar -2010 Spud Date: 3- Mar -2010 Total Depth: 12.25" Surface Intvl: 2685' MD/2670' TVD ' Land 9 5/8" Casing 2678' MD/2663' TVD 8.50" Int/Prod Intvl: 11414' MD/10601' TVD ' Rig Release Date: 28 Mar 2010 North Reference: True Declination: 22.197° Dip Angle: 80.977° Total Field Strength: 57685 nT Date Of Magnetic Data: 3 Mar 2010 1 Wellhead Coordinates N: North 70° 24' 23.19" Wellhead Coordinates W: West 148° 57' 32.68" Drill Floor Elevation: 48.50' ' Ground Elevation: 16.00' Permanent Datum: Mean Sea Level SDL Engineers: Danny Kane, Ryan Massey, Roman Krochuk SDL Sample Catchers: Chris Woolley, Samantha Jemison, David McKechnie, Steven Jenkins Company Geologist: Doug Hastings Company Representatives: Jack Keener, Larry Miller, Natasha Sachivichik, Don Breeden 1 SSDS Unit Number: 115 1 1 /41410,000ovii Brooks Range Petroleum Corporation 1 HALLI B U RTO N I Sperry Drilling DAILY SUMMARY 1 North Shore 3 01- Mar -2010 ' SDL arrives on site. Waiting on the rig move to finish before spotting the SDL unit. 02- Mar -2010 SDL unit spotted and rigged up. ' 03- Mar -2010 SDL finished rigging up. Rig continued rigging up preparing for the surface hole section. Lined up on wellhead and circulated across the wellbore — returns received. Made up BHA #1 and started running in within the 20" conductor while engaging rotary and pumps. Jetted loose debris from within the conductor and started drilling at 105' MD with initial high ROPs of 300fph while holding very low WOB. Immediately after running into the conductor, started receiving large volumes of gravel and sand over the shakers, packing off the possum belly. With the rig unable to maintain a clean flow line and possum belly, removed the gas trap (per rig's request) at 170' MD. Continued drilling ahead with 300fph average ROPs before drilling was ceased at 240' MD because of the packed -off possum belly and flow line. Staged pump rates up and down while trying to clean possum belly with little success. Despite being off bottom, 1 large volumes of gravel were seen coming over the shakers every time the pumps were turned on, showing the wellbore to be considerably enlarging when the pumps were turned on as the surface gravels sloughed into the wellbore. Net PVT losses show a 141 bbl deficit since spudding the well; approximated hole enlargement at 90bbls assuming a 51bbI loss from wet cuttings resulting in an average hole diameter of 23.8" to 240' MD. Continued working in the pits to clean up gravel packing within the possum belly to midnight while transferring 184bbIs of new WBM from the Baroid Mud Plant onto the rig to make up for the washout/cuttings -wet losses within the last 24 hours. Background gas showed very little trace 1 amounts of methane before the gas trap was removed, well below 1 unit. Drilled lithology consisted of: • Upper Permafrost Gravel — [... 105' MD /105' TVD to 240' MD/240' TVD...] o General Descriptions: Loose gravel with occasional interbedded sand. • Sand: Gray, white, black, multicolor in part, opaque, medium upper to very ' coarse grained, unconsolidated, poorly to moderately sorted, interbedded gravel, sub angular to angular, occasionally sub rounded, quartz, some lithic fragments, rare wood. 1 • Gravel: Multicolor, gray, white, black, occasionally yellow, 3mm -20mm in diameter, round to sub round, occasionally angular, poorly sorted, sub spherical to elongated, unconsolidated, quartz, some lithic fragments, loose sands interbedded, and rare wood. o Gas Description: No gas observed from the formation. o Drilling Notes: Minimal sliding and rotary drilling with ease through the upper Permafrost; the hole enlargement from Permafrost instability was resulting in large cuttings load while on- and off - bottom. 1 o Formation bottom not reached — continued next day. 04- Mar -2010 ' After finishing the mud transfer onto the rig to mitigate the sloughing surface gravel section, the pump rates were staged and the possum belly was kept from packing off despite the large volumes of gravel and sand that were coming to surface every time the pumps were turned on. Attempted to drill onward from 240' MD/ 240' TVD with reduced 20fph average ROPs but saw little success as the possum belly ' continued to pack -off with cuttings as far back as inside the flow line. Drilled remainder of the stand down to 255' MD and pulled up to 112' MD while performing top drive maintenance as well as cleaning the flow line and possum belly of gravel. With repairs completed, tripped back to bottom and continued drilling ahead; increasing the ROP from an initial 50fph before settling on 100fph to keep the cuttings returns in control (while both on- and off- bottom). With manageable returns, the gas trap was placed back in the possum belly during the 438' MD connection (taken out the previous night per rig request to mitigate Brooks Range Petroleum Corporation 1 1 HALLI B U RTO N I Sperry Drilling gravel packing in possum belly and flow line). Drilling continued on to the 528' MD connection at 100fph I with minimal WOB (alternating rotary drilling and sliding for near - wellbore collision avoidance); tripped back to surface and broke down BHA #1 before picking up BHA #2 while re- running Bit #1— Hughes MXL -1X. After finishing making up BHA #2, started tripping in and encountered tight hole conditions at 465' MD which required pipe reciprocation and staged circulation to clear. Continued to bottom and I encountered a large amount of cuttings resulting in high torque (twice background levels) along with one brief pack -off. Continued drilling the 12.25" surface hole section from 528' MD/ 528' TVD on through 731' MD/ 730' TVD. Drilling consisted of rotary and brief slide intervals with average ROPs ranging from 80- 140fph across the interval. The wellbore continued to washout further during the past 24 hours, for a total II net deficit since spudding of 512bbls. Mud loss to wet cuttings was approximated at 194bbIs, leaving an approximate 318bb1 washout through 731' MD (for an average surface interval average diameter of 25.1") with the primary source of washout being the surface gravel interval. Drilled background gas consisted I solely of methane but remained relatively benign across the interval with a 0 -3 unit trace measured. Drilled lithology: • Upper Permafrost Gravel – [...240' MD /240' TVD to 460' MD /460' TVD] o Formation continued from the previous day. I o General Descriptions: Loose gravel with occasional interbedded sand. • Sand: Multicolor, clear to opaque, gray to black, white, medium lower to very coarse, unconsolidated, poorly to moderately sorted, interbedded gravel throughout, sub angular to angular, occasionally sub round, quartz, lithic I fragments, and rare wood. • Gravel: Multicolor, gray, white, black, occasionally dull - translucent yellow, 3- 40mm in diameter, round to sub round, poorly to moderately sorted, sub I spherical to elongated, unconsolidated, quartz, lithic, and occasionally wood fragments. o Gas Description: Trace amounts of methane observed within the interval. o Drilling Notes: Good drilling parameters throughout but large amounts of sloughing I gravel encountered from this interval for the rest of the surface interval. • Permafrost – [460' MD /460' TVD to 731' MD/730' TVD...] o General Descriptions: Unconsolidated gravels with occasional interbedded sands, I siltstones, and clays. • Sand: Gray, white, black, opaque, quartz, lithic fragments, sub round to sub angular, occasionally angular, poorly to moderately sorted, interbedded gravel, trace clay, disseminated pyrite. I • Gravel: Gray, white, black, translucent yellow, opaque, 3 -9mm diameter, sub round to round, moderately sorted, sub spherical to sub elongated, common disseminated pyrite, quartz, lithic. o Gas Description: Trace amounts of methane were picked up, increasing from 1 to 3 I units with further depth. o Drilling Notes: Increased ROP to 120fph with an average 15- 20klbs and steady 2 -3kfps torque at 50rpm surface /175rpm bit. Consistent clean drilling with limited directional 1 slides. o Formation bottom not reached – continued next day. 05- Mar -2010 I Continued drilling ahead from 731' MD/ 730' TVD to the surface interval TD of 2685' MD/ 2670' TVD (TD at 23:40hrs) with good sustained ROPs and few problems encountered throughout the majority of the drilled interval. ROPs averaged 120- 160fph while drilling through the permafrost and picked up to 180 - 240fph after exiting the permafrost at 1890' MD/1889' TVD. Having exited the permafrost, started I directional build to 14 degrees with sliding intervals on most stands thereafter. ROPs dropped to a highly erratic 30- 120fph within the large clay sequence encountered from 2300' MD/2295' TVD and picked back up again after exiting the higher gamma clays at 2480' MD/2471' TVD to 120- 200fph to the surface interval TD. The aforementioned clay sequence additionally introduced a large amount of clay into the I mud system which blinded the shakers and helped bring additional gravel to surface with through an increase in the mud viscosity; the surface system was overwhelmed resulting in the flow rate being /00 01 110, " 00 - \. , , , ......41 Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperr Drilling dropped from 705gpm to 455gpm from 2523' MD on to the surface interval TD. There were a few brief delays in drilling, twice while having to change the pump suction screens (at 1292' MD & 1518' MD) and once when power generation was lost to the entire rig (1366' MD). Drilled formation gas picked up with increased depth to 5 -25 units and was composed entirely of methane —no peaks were observed but one or two very faint connection gasses (1 -2 units over background) were measured. Torque and drag looked 1 good across the drilled interval with only a slight increase seen after entering the higher gamma clay sequence; overall the hole was in good condition concerning torque and drag. The wellbore continued to washout throughout the day with larger than normal cuttings returns often encountered; raw cuttings analysis showed that the surface gravel interval is continuously sloughing into the wellbore with increased circulation time. Estimates indicate that the wellbore has washed out to 465bb1s over gauge (for an average hole diameter of 18 ") with the vast majority of that washout believed to be from the surface gravel interval down to about -450' MD as evidenced by the large amount of gravel continuously coming 1 to surface similar to the gravel logged when drilling that interval. With the presence of more gas (5 -25 units), the effective annulus as expressed by the flow regime appears to be dynamically changing between 90- 120bbIs, with a slow increasing trend over time. Drilled lithology consisted of: • Permafrost - [731' MD/730' TVD to 1890' MD/1889' TVD] 1 o Formation continued from the previous day. o General Descriptions: Unconsolidated gravels and sands interbedded with siltstone /clay intervals throughout. • Sand: Clear to transparent, opaque, light gray to gray, occasionally dark gray, occasionally dull yellow, medium lower to lower coarse grained, occasionally fine upper grained, coarse to very coarse grained throughout, primarily quartz & lithic fragments, sub angular to sub rounded, occasionally angular, poor to moderately 1 sorted, loose, trace calcareous occasionally, scattered micro pyrite, occasional massive pyrite, occasional massive quartz, scattered wood fragments. • Siltstone: Gray to dark gray, dark gray- brown, very dark gray, hard, firm in part, non calcareous, wood fragments throughout, scattered disseminated pyrite, 1 occasional massive pyrite. • Clay: white, tan to light gray, silty throughout, scattered carbonaceous specks, very soft, gummy. • Lignite: brown to dark brown, grading to black, hard, brittle, fissile in part, 1 interbedded with sand. o Gas Description: Trace amounts of methane throughout ranging from 3-4 units. o Drillin g using Notes: C ontinued usin 15- 25klbs WOB while drilling ahead at 100- 200fph 1 (variably independent of lithology). Drilled torque slowly climbed from 2.5 to 3kfps across the interval with a steady 50 -55 surface rotary/200rpm bit speed. • Colville Group - [1890' MD/1889' TVD to 2685' MD/2670' TVD...] o General Descriptions: Alternating soft sand /siltstone and clay /shale sequences. 1 • Sand: Clear to transparent, light gray to gray, trace blue -gray, fine lower to medium upper grained, occasionally coarse grained, sub angular to sub rounded, spherical, poorly to moderately sorted, loose, non calcareous, scattered 1 micronized pyrite. • Siltstone: Gray to dark gray, brown -gray in part, hard, firm, non calcareous, interbedded sands, common pyrite. • Clay: White to light gray, light tan to light brown, silty, scattered carbonaceous 1 specks, very soft, gummy, sticky, non calcareous. • Lignite: Brown to dark brown, occasionally dark gray to black, soft, friable. o Gas Description: Drilled formation gas picked up from 20 to 30 units throughout the interval and was composed entirely of methane. 1 o Drilling Notes: After leaving the permafrost, started the directional build and slid within the first few stands to build the inclination to 14 degrees. ROP picked up considerable to 200fph with 5- 10klbs WOB and 3kfps torque with 55rpm surface rotary/200rpm bit rotary. Large clay sequence encountered from 2300' to 2480' MD reduced ROP to 100fph with I WOB increasing from 5 to 20klbs and torque increasing to 4kfps. o Formation bottom not reached - continued after surface interval cased & cemented. Brooks Range Petroleum Corporation 1 1 HALLIBURTON I Sperry Drilling 1 06- Mar -2010 Continued circulating after reaching the surface hole TD with 435gpm flow, surface rotary 75rpm, and bit rotary 162rpm while torque held steady at 2.5kfps. Bottom's up strokes was observed at 3735strokes, representing an effective annulus (flow regime) 105bbIs over gauge and an estimated total wellbore 1 washout 465bb1s primarily from the surface permafrost gravels. Circulating stopped at 11,111 strokes for -3x effective annulus volume (bottom's up); during the entire circulation, standpipe pressure fell by 30psi, representing a 0.22ppg cuttings load dropped over that period (although sands and gravels were still observed coming from the wellbore before circulation was stopped, albeit at much lower rates than while drilling). Started wiper trip out to 348' MD seeing only minor drag at bit depths 1650' - 1550' MD where circulation at 200gpm was used to work through the interval. Started wiper trip back down to bottom this time encountering a tight spot at -1900' MD where rotary at 30 -60rpm and 400- 450gpm flow was needed ' to work through; while working this tight spot, high torque spikes were encountered accompanied with standpipe pressure spikes indicating brief packing off around the drillstring /BHA. Continued running to bottom, tagged bottom at 2685.17' MD, and started circulating the wellbore clean. Bottom's up was observed at 4750stks (93bbls over gauge) indicating a dynamic effective annulus (as expected within the 1 permafrost with circulating breaks). Continued circulating with 460gpm flow, surface /bit rotary 80/171 rpm, and torque 2.5- 2.9kfps before ceasing at 12818 strokes -2.75x effective annulus volume (B /U). Started trip out by first washing out two stands before continuing the trip out to surface while seeing no tight spots pulling out with the elevators. With BHA #2 to surface, downloaded MWD tools, broke and laid down 1 BHA #2. Bit 1rr1, a Hughes MXL -1X, was graded 1- 3- WT- A- 2- E -RG -TD at surface. Cleared the rig floor and started to rig up the 9 5/8" casing running equipment. 1 07- Mar -2010 Finished rigging up 9 5/8" casing running equipment. P/U shoe and start tripping in with 9 5/8" 40# BTC- M casing. Tripped to bottom with no problems encountered and staged pumps to circulate once on bottom (no sweep pumped). Rigged up cementing equipment and pressure tested lines. Staged 1 circulation and then pumped 50bbls of 10.0ppg push mud, 420bbIs 10.7ppg lead cement, and 45bbls of 15.8ppg tail cement. Dropped top plug, kicked out w/ 10bbls of water, and displaced until plug was bumped at 1864 strokes; no cement returns to surface and casing was officially landed at 2678' MD/ 2663' TVD. Rigged down the cement head, brought more cement onto location, and started tripping in 1 with the cement stage tool to perform a top job. Gas while circulating remained relatively benign and the max gas seen during the cementing was 7 units. 1 08- Mar -2010 Finished picking up and making up the cementing combo tool. Tripped in and tagged the tam collar at 429' MD before circulating and conditioning the mud within the casing. Stung into the collar, pressure tested to 500psi, opened the sleeve, and staged circulation to 5bpm. Tripped in the casing, stood back one stand, and made up pump -in sub. Then tripped in the casing with the sub, cleared the lines, and 1 pressure tested all lines to 3000psi. Started pumping cement and obtained returns at surface; with good around, pumped 5bbls water to clear the drill pipe. Sucked returns in cellar with vac truck, coming a o , p p p p , circulated the pipe clean, and laid down the cementing BHA. While waiting on the cement made up the ' landing joint and cleared the stack before starting to rig down the diverter. No losses observed on surface and no gas above 3 -4 units was observed. 1 09- Mar -2010 Finished rigging down the diverter while cleaning the pits in preparation for the synthetic oil -based mud swap. Nippled up BOPE, cut the riser, and installed the kill hose & hard lines. Change out swabs and liners in Pump #2. With no flow within the previous 24 hours no gas was measured. 1 10- Mar -2010 Finished nippling up BOPE and test same. Start 4" drill pipe management and pick up 9000' MD of 5" drill pipe joints before racking the stands back in the derrick. Brooks Range Petroleum Corporation HALLIBURTON 1 Sperr Drilling 11- Mar -2010 Finished 5" drill pipe management and started building BHA #3, using a Hycalog DTX619M -D6 PDC bit and Schlumberger LWD /MWD & positive displacement mud motor. Loaded nuclear sources and started tripping in to bottom. Pulse tested tools at 934' MD before stopping the trip in to repair the kelly hose in the derrick. Resumed tripping in, stopping to pulse test again at 1600' MD before finally getting to bottom. Engaged pumps at 450gpm with surface rotary 30rpm one stand off bottom, pulse tested MWD, and started drilling cement. Packed off and stalled the top drive at 2675' MD with a standpipe pressure spike from 1020 to 1494psi accompanied with a torque spike from 2.25 to 6kfps. Pulled up and worked through the tight spot before resuming drilling the cement. Drilled out of the 9 5/8" casing shoe at 2678' MD and started 8.5" intermediate hole section at 2685' MD at 19:56. Drilled ahead to 2705' MD/2690' TVD in preparation for the FIT with steady drilling parameters of 455gpm flow, standpipe pressure 1025psi, surface rotary 30rpm, torque 2.5kfps, and WOB 3- 4klbs. Circulated 2.5x annular volume before racking ' back one stand to bring the BHA entirely within the casing prior to displacing over to SOBM (Enviromul). Offloaded 80bbls WBM and started cleaning all pits in preparation for the SOBM transfer. 12- Mar -2010 ' Continue cleaning pits and mud equipment in preparation for SOBM displacement of WBM. Slip and cut drilling line while waiting on pits. With pits cleaned, took on 685bb1s of 9.20ppg Baroid Enviromul SOBM (recycled mud from Sak River 1A well with hydrocarbon contamination). Circulated mud around wellbore while simultaneously filling all pits. With the displacement and SOBM transfer completed, circulated and conditioned the wellbore to achieve a homogenous 9.20ppg (measured) around. Rigged up for and ran FIT test. Finished test and tested formation to 15.10ppg EMW. Tripped back down to bottom and drilled 8.5" production hole section from 2705' MD / 2689' TVD to 3721' MD / 3668' TVD entirely within the ' Colville Group formation (massive siltstone and sandstone formation). Drilled ahead with a near steady ROP from 160- 205fph across the entire interval using flow 480- 535gpm, surface rotary 60rpm, bit rotary 118- 212rpm, and a variable 2 -15kIb WOB while rotating and 10 -20kIb WOB while sliding. Thick mud was observed coming across the shakers initially leading to some shaker blinding that was compounded by ' the fine solids already within the recycled mud and the cold mud temperatures. Large amounts of cuttings were observed unloading sporadically and there were very large cuttings loads within the rotary drilling lag intervals immediately after slide drilling as the pipe rotation helped clean the hole behind the ' BHA. Overall the hole was in good shape with little washout observed from PVT and lagged gas analysis. Drilled formation gas within the previous 24 hours slowly rose from an initial 40 units to 50 -110 units deeper down within the Colville composed solely of methane. Gas fluctuated with flow rate and ROP and no true formation gas peaks were observed as shown by normalized gas. Enhanced gas analysis (steam still) showed the presence of minor heavy hydrocarbon accumulations within the recycled Sak River 1A mud (15 -20ppm C2, 25 -30ppm C3, 25 -35ppm C4, & 30 -40ppm C5); this heavy hydrocarbon count has been decreasing with further circulating time as it is being liberated from the drilling mud. Minor losses started around 3100' MD and have since picked up to a 2 -3bph loss for a total loss of 32bbls to this well section. Drill lithology consisted of: • Colville Group — [...2705' MD/2689' TVD to 3099' MD /3072' TVD] o Formation continued from the previous surface hole section. ' o General Descriptions: Alternating siltstone/very-fine grained sandstone sequence. Low resistivity across the interval and the gamma fluctuated from 45 -85api dependent on the lithology being drilled. • Gravel: Translucent to opaque, white to light gray, blue -gray, dark gray in part, predominantly quartz, sub spherical to elongated, round, poor to moderately sorted, hard to very hard. • Sand: Translucent, occasionally clear, opaque to white, quartz, lithic fragments, sub spherical, sub rounded, moderately sorted, loose, non - calcareous. ' • Sandstone: Clear to opaque, white to light gray, quartz, dark gray in part, grading to siltstone throughout, very fine lower to fine lower grained, sub round to sub - angular, moderate to well sorted, soft, occasionally loose, non calcareous, silica cemented, abundant carbonaceous material. • Siltstone: Light gray to medium gray, dark gray in part, argillaceous in part, grading to very-fine grained sandstone in part, predominantly quartz, soft to /s boy1 os Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperry Drilling I non calcareous, occasionally hydrophilic, carbonaceous material scattered I throughout, occasional mica observed. • Claystone: Light gray to gray, dark gray in part, silty, soft, long thin angular PDC cuttings. • Shale: Light gray to gray, dark gray in part, silty, hydroturgid, hydroclastic, soft to I firm, non calcareous, interbedded siltstone, trace glauconite. o Gas Description: Drilled formation gas steadily increased throughout the formation to 30 -40 unit average. No peaks observed and drilled gas has been composed of entirely methane. I o Drilling Notes: Drilled ahead with good sustained ROPs, low WOB while rotary drilling, and with drilling torque averaging 2.5 -3kfps across the interval. • Ugnu — Saganavirktok 3 — [3099' MD/3072' TVD to 3721' MD/3668' TVD...] I o General Descriptions: Two distinct sandstone packages grading often to siltstone and separated by a brief shale /siltstone interval in between the two sandstone packages. Sandstones average 30 -50api gamma, with a low 2ohmm resistivity, and bulk densities close to 2.1 g /cc; sands appear to be water -wet. I • Sandstone: clear to opaque, white to light gray, medium gray in part, grading to siltstone throughout, very fine lower to fine lower grained, occasionally fine -upper grained, sub - rounded to sub - angular, moderate -well sorted, sub tabular cuttings, soft, non calcareous, silica cemented, common glauconite, abundant scattered I carbonaceous material.. • Siltstone: Light gray to gray, medium to dark gray, occasionally tan, argillaceous in part, occasionally grading to a very-fine grained sandstone, predominantly I quartz, soft to firm, non calcareous, slightly hydrophilic in part, carbonaceous material scattered throughout.. • Shale: Light gray to gray, medium gray, occasionally dark gray, silty, hydrophilic, hard to firm, non calcareous, carbonaceous material interbedded, mica, small sub - tabular cuttings, PDC bit cuttings. o Gas Description: Drilled formation gas picked up from 40 to 60 -100 unit average throughout the sands and was composed entirely of methane. o Drilling Notes: Good drilling parameters across the interval with drilling torque picking up I to 3.5kfps, WOB 5- 10klbs (5- 15klbs while sliding), surface rotary 60rpm, bit rotary 180 - 210rpm, for good sustained 180- 220fph average rotary ROPs. o Formation bottom not reached — continued the following day. I 13- Mar -2010 Continue drilling 8.5" intermediate /production hole ahead from 3721' MD / 3668' MD on to 5913' MD / 5780' TVD while primarily rotary drilling with occasional sliding for directional control. Drilling parameters I for slide drilling were maintained at 450- 505gpm flow for bit speeds of 125- 135rpm and with a variable WOB between 5- 15klbs. While rotary drilling, the surface rotary varied from 60 to 80rpm for bit rotary speeds of 190 to 225rpm. Drilling torque slowly increased across the interval from 3 to 5.5- 6.0kfps with a subsequent rise in the off - bottom torque as well. Overall, the interval was drilled fairly effectively with I 135- 180fph average instantaneous ROPs for each stand. Hole cleaning from high ROP cuttings in the wellbore has been problematic at times with two major events occurring over the normal problems encountered with high ROP cuttings returns on this rig. The first occurred at 3736' MD where the torque I rose to 7kfps over a background of 2.75kfps, SPP rose 70psi over differential pressure, and the PWD rose 0.45ppg EMW over background levels. Immediately after this event, large cuttings returns were observed over the shakers and resulted in a loss of gas data from the possum belly rising further than the gas trap could be raised. In addition, there was another smaller magnitude torque /PWD /SPP increase at I 4065' MD which was also followed with a large cuttings load at surface. Similar to the previous day, high cuttings loads are observed from the rotary lag immediately after any sliding interval showing periodic inadequate hole cleaning while sliding. Drilled background gas has fluctuated with an average background of 75 -250 units with occasional coal -bed methane gas peaks throughout the Ugnu & upper I K15 formations. No shows were observed and both the legacy gas and steam still analysis have shown methane to be the primary component with the steam still picking up occasional trace amounts of heavy 1 Brooks Range Petroleum Corporation HALLI B U RTO N I S perry Drilling hydrocarbons that are assumed to be mostly contamination within the SOBM. The well has been losing a ' variable 5 -15bph average throughout the interval and LCM has been added periodically in an attempt to abate the losses downhole. Lagged gas indicates the effective annulus to be pretty close to gauge, with an estimated 10bbI effective annulus washout (cuttings returns quantity doesn't indicate a true annulus washout much larger). Drilled lithology consisted of: ' • Ugnu — Saganavirktok 3 — [...3721' MD/3668' TVD to 3746' MD/3693' TVD] o General Descriptions: Base of the Saganavirktok 3 formation with a fining lithology composed of alternating siltstone /shale intervals with an increased resistivity to 4ohmm, ' gamma 60- 90api, and a steadily increasing bulk density to 2.35g /cc. • Siltstone: Light gray to gray, medium gray in part, occasionally tan, argillaceous, occasionally grading to very-fine grained sandstone, predominantly quartz, soft to firm, non calcareous, slightly hydrophilic, carbonaceous material interbedded. ' o Gas Description: No gas data for this interval — possum belly packed off with high ROP shale cuttings. o Drilling Notes: Large increase in torque noticed in this interval just prior to entering the SV 1 formation resulting from poor hole cleaning (SPP & PWD spikes). ' • Ugnu — Saganavirktok 1 — [3746' MD/3693' TVD to 4350' MD/4275' TVD] o General Descriptions: Initially one large sand sequence (20- 30api, 2ohmm resistivity, 2.05g /cc density) followed by large shale interval (70 -85api gamma, 4ohmm resistivity), ' and then by a highly interbedded sandstone, siltstone, and coal sequence. Most coal seams had 15- 20ohmm resistivity spikes coupled with significant decreases in bulk density to 1.5g /cc, doubled porosity, and coal bed methane shows. • Sandstone: Clear to opaque, white to light gray, grading to siltstone ' occasionally, very fine lower to fine lower grained, spherical, sub angular to sub round, moderately to well sorted, sub tabular cuttings, soft, non calcareous, silica cemented, scattered carbonaceous material throughout. • Siltstone: Light gray to gray, reddish brown in part, light brown -brown in part, ' argillaceous in part, grading to very-fine grained sandstone in part, predominantly quartz, firm to hard, non calcareous, hydrophilic, slightly micaceous, carbonaceous material interbedded.. • Shale: Gray to medium gray, dark gray, silty, hydrophilic, hard, non calcareous, occasional carbonaceous material interbedded, thin elongated PDC bit cuttings, occasionally angular PDC bit cuttings. • Lignite: Black, dark reddish brown in part, occasionally silty, blocky, brittle, firm ' to hard, grading to coal. o Gas Description: Drilled formation background gas levels increased to 100 -150 units for this interval and a few coal bed methane peaks were encountered in the lignite /coal intervals (4173' MD — 267 over 122 units, 4187' MD — 305 over 145 units; all gas was I composed solely of methane. Steam still analysis began picking up slight traces of heavier hydrocarbons at —4350' MD. o Drilling Notes: Drilled ahead with an steady 5- 10klbs WOB, surface rotary 50- 60rpm, bit rotary 130 (sliding) — 200rpm, slow 465- 500gpm, and drilling torque holding fairly steady ' at 3- 3.5kfps for the interval with sustained ROPs at 140- 160fph. • K15 — [4350' MD/4275' TVD to 5886' MD/5754' TVD] o General Descriptions: Highly variable sequence of interbedded sandstone and siltstone ' with intermittent beds of shale. Occasional thin 5 -10' coal intervals (resistivity 4- 8ohmm, bulk density 1.2- 1.5g /cc) interspersed throughout with rare siderite- cemented sandstone /siltstone stringers (2.5g /cc). • Sand: Clear to translucent, opaque to white, light gray, occasionally bluish gray, ' predominantly medium lower to coarse grained, occasionally coarse to very coarse grained, quartz, lithic fragments, angular to sub - angular, poor to moderately sorted, predominantly loose, non calcareous, silica cemented, ' occasionally siderite cemented, scattered micro carbonaceous material, rare bluish - orange, light gray chert fragments. /000 Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling • Siltstone: Light gray to gray, occasionally dark gray, tan, light brown, ' occasionally orange- brown, grading to very fine grained sandstone, soft to firm, hard in part, non - calcareous, calcareous cemented in part, clay matrix cemented, occasionally silica cemented, scattered micro pyrite, micro carbonaceous material throughout, occasional lignite /coal fragments. • Shale: Light gray to medium gray, light brown -gray, very silty in part, hydroturgid, occasionally hydrofissile, firm to hard, slightly calcareous, carbonaceous material throughout, elongated PDC cuttings. • Coal: Black, glossy, soft to firm, occasionally hard, brittle, fissile, thin angular ' cuttings. • Limestone: White to light gray, tan to very light brown, soft, very calcareous, lithic, occasional carbonaceous material. ' o Gas Description: Drilled formation gas averaged 100 -200 units varying throughout the interval with gas peaks associated with thin coal and sandstone /siltstone stringers; gas peaks at 4347' MD – 341 over 116 units, 4517' MD – 632 over 128 units, 4763' MD – 339 over 131 units, and 4800' MD – 271 over 123 units. The legacy gas equipment picked up ' only methane with the steam still picking up trace amounts of C2 -05 after the aforementioned peaks. o Drilling Notes: Drilled ahead in a fairly monotonous section with surface rotary 60- ' 100rpm, bit rotary 190- 24Orpm, WOB 5- 15klbs rotating, 15- 25klbs sliding, with drilling torque rising from 3 to 6kfps, and standpipe fluctuating between 1600- 2050psi dependent on the flow rate. Fairly monotonous drilling section with no problem spots encountered other than some minor pack -offs around the BHA with high cuttings loads. ' • West Sak – [5886' MD/5754' TVD to 5913' MD/5780' TVD...] o General Descriptions: Very fine to fine grained sandstone grading to siltstone (gamma 40- 50api, bulk density 2.15g /cc, and resistivity spike to 6ohmm at the top of the sandstone dropping to 2- 3ohmm— water -wet gas cap). • Sandstone: Clear to translucent, opaque, white to light gray, gray, predominantly very fine upper to fine lower grained, predominantly quartz, spherical, lithic, sub- ' angular to sub -round, moderately sorted, soft to firm, non calcareous, trace ' glauconite, scattered carbonaceous material, silica cemented. • Siltstone: Gray to medium gray, dark gray, brown in part, grading to very fine grained sandstone throughout, firm, hard, slightly calcareous, primarily silica cemented, nodular cuttings. o Gas Description: Drilled formation gas picked up after exiting the K -15 formation and climbed from 67 to 220 units; both legacy and steam still gas extraction showed the methane to be the sole contributor in this section. o Drilling Notes: Drilling torque improved slightly by 0.5- 1.0kfps after entering the West ' Sak but overall drilling parameters mirrored the previous section: surface rotary 84rpm, bit rotary 210rpm, flow 460gpm, standpipe pressure 1940psi, WOB 0- 5klbs, and on bottom torque 4.25- 5.0kfps. o Formation bottom not reached – continued the following day. 14- Mar -2010 Continued drilling 8.5" intermediate /production hole ahead from 5913' MD / 5780' MD on to 7837' MD / 7635' TVD while primarily rotary drilling with occasional sliding for directional control. Overall drilling parameters looked good while drilling with the expected slow increase in torque with increased depth needed to maintain the elevated 160- 200fph average rotary ROP; drilled with 5- 15klbs WOB, 450 - 510gpm flow, surface rotary 80rpm, 210- 245rpm, and on bottom torque increasing from 4.5 to 6kfps. ' Stacking WOB while sliding started to periodically show up with 15- 20klbs WOB, but sliding ROPs still typically averaged 100- 140fph. Overall, no high torque or drag conditions were encountered, and the stacking WOB while sliding is attributed to the BHA configuration and not the wellbore condition. At 6783' MD, Pump #2 was down for repairs, and the drillstring sat in the hole for 90minutes while the pump was repaired; the drill string was pulled up in 2 -5' MD increments in the last half hour of the repair, and the overpull only averaged 30- 50klbs. With the pumps repaired, circulated 1x annular volume with a large / soy A sfro;fshh, 1 Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling i cuttings load observed throughout the pumped annular volume, showing that the good gels in the mud coupled with inhibitive settling in the low angle wellbore kept the cuttings from settling out and burying the BHA while the pumps were down. After drilling resumed, started implementing full -stand reams (instead of 30' reams) at the end of each stand drilled; hole cleaning was not an issue prior to this event but was implemented as a best practice thereafter. Drilled formation gas averaged 75 -250 units across the ' interval with a few small gas peaks encountered throughout the latter Colville Group. Legacy gas equipment encountered methane throughout the entire interval with a brief ethane and propane show in the lower West Sak before falling out once in the Colville Group. Ethane stayed in the mud system in trace amounts thereafter, and started rising along with propane at 7650' MD. The wellbore condition was ' great, with an effective annulus (flow regime) adjustment only 10- 15bbls over gauge; PVT and cuttings analysis don't indicate the actual annulus has washed out any further than the effective annulus. The slow variable losses seen in the previous days continued throughout this section, although the loss rate was slowed to 5- 10bbls /hr using a 2ppb Baracarb and mica LCM mixture successfully (loss rate dropped from 20bph to 5bph within 30 minutes after pumping the new LCM mixture). Drilled lithology consisted of: • West Sak [...5913' MD/5780' TVD to 6650' MD/6490' TVD] o West Sak Marker — 5985' MD / 5850' MD. ' o Formation continued from the previous day. o General Descriptions: Interbedded very-fine grained sandstone and siltstones grading finer with increased depth to massive shales with occasional coarsening siltstones and two thin sandstone intervals exhibiting a minor hydrocarbon show at 6542' MD / 6386' ' TVD and 6554' MD / 6397' TVD. • Sandstone: Clear to translucent, opaque to white, light gray, occasionally brown to dark brown, predominantly quartz, lithic fragments, very fine upper to fine upper grained, calcareous, tightly cemented, carbonaceous material throughout. • Siltstone: Medium to dark gray, dark gray in part, rarely dull green, grading to very fine grained sandstone in part, argillaceous, firm, hard, slightly calcareous, primarily silica cemented, sub tabular PDC cuttings. ' • Shale: Gray to medium gray, dark gray, occasionally brown, silty, hydroturgid- hydroclastic, hard to very hard, non calcareous in part elongated PDC bit cuttings. • Limestone: white, firm, brittle, trace sandstone interbedding, carbonaceous material, PDC bit cuttings. o Gas Description: Gas continued to pick up after passing the West Sak Marker from a background of 100 units with a formation gas peak of 359 over 166 units at 6036' MD / 5898' TVD. This gas peak introduced measurable ethane into the mud system with trace amounts of propane through pentane being measured with the steam still. Additional heavy hydrocarbons were measured (legacy — methane through propane, steam still — greater amounts of ethane through pentane) at 6242' MD / 6096' TVD and the increased ' further at 6430' MD. While the heavy hydrocarbons dropped out on the legacy gas extraction equipment by 6500' MD, the steam still showed lingering heavy hydrocarbons within the mud system for the rest of the interval. o Shows: • Show Report #1 — West Sak Sandstone • West Sak — 6540' MD / 6384' TVD to 6555' MD / 6398' TVD • Non producible hydrocarbons. o Drilling Notes: The remainder of the West Sak drilled without any problems encountered: surface rotary 80rpm, bit rotary 130- 225rpm, flow 465- 510gpm, standpipe pressure 2000- 2350psi, and WOB 7- 13klbs while rotating and 25- 35klbs while sliding. • Colville Group — [6650' MD/6490' TVD to 7837' MD/7635' TVD...] ' o General Descriptions: Massive shale sequence with occasional argillaceous siltstone intervals (gamma 70- 140api, resistivity 2- 3ohmm, bulk density rising from 2.3 to 2.55 with increased depth). ' • Shale: Gray to dark gray, dark brownish gray, very silty in part, hydroturgid, slow to moderate swelling, occasionally fast swelling, hard to very hard, brittle, varying calc, scattered carbonaceous material, occasional traces of limestone. Brooks Range Petroleum Corporation 1 1 HALLIBURTON I Sperr Drilling • Siltstone: Gray to medium gray, brown to dark gray, occasionally light gray in I part, argillaceous, rarely grading to very -fine grained sandstone, hard, brittle, predominantly slightly calcareous, micro carbonaceous material throughout, intermittent visible shale interbedding. o Gas Description: Drilled formation gas varied from 60 - 100 units through 7680' MD with I the legacy gas extraction equipment picking up primarily methane with ethane going in and out throughout the interval; steam still gas extraction showed that the heavy hydrocarbons continued to linger in the mud and while varying over the depth, generally exhibited a very slow decline. At 7680' MD, frequent gas peaks were observed (7720' I MD – 299 over 75 units, 7770' MD – 381 over 195 units, and 7825' MD – 495 over 200 units) and the legacy gas equipment started picking up consistent ethane and propane while the steam still picked up higher concentrations of ethane through pentane. I o Drilling Notes: Continued drilling ahead with a steady 160- 200fph average rotary ROP with the following drilling parameters: surface rotary 82- 100rpm, bit rotary 210 - 245rpm, flow 445- 525gpm, standpipe pressure 2050- 2600psi, drilling torque 5.5- 6.5kfps, with rotary WOB 5- 15klbs and sliding WOB 10- 20klbs. No problems encountered throughout I the interval. o Formation bottom not reached – continued the following day. 15- Mar -2010 I Continued drilling ahead 8.5" intermediate /production hole from 7837' MD / 7635' TVD to 9034' MD / 8788' TVD while primarily rotary drilling with increased sliding intervals for directional control. Rotary drilled ahead with 60- 100rpm surface rotary, bit rotary 130 - 245rpm, flow 490- 510gpm, and WOB 5- 12klbs I with the drilling torque increasing from 6.5 to 9kfps with increased depth; these rotary drilling parameters were used throughout the drilled interval with the only significant changes being the rising torque and decreasing ROP with increased depth. Slide drilling again encountered increasing stacking WOB from 15- 25klbs with sliding ROPs reduced to 50- 100fph towards the end of the drilled interval. Finally drilled I out of the Colville and into the HRZ at 7860' MD without weighting up; the existing 9.30ppg SOBM was insufficient and the well went underbalanced after entering the HRZ. Subsequent connection lag intervals had very large connection gasses (max 6045 units over a 175 unit circulating (higher ECD) background) I as the well went slightly underbalanced; no flow was observed with the pumps off and no shale cavings were ever detected. After realizing the underbalanced conditions, started weighting up the mud system on the fly from 9.30 to 10.40ppg by adding 50Ibs barite every 2 -3 minutes until the target weight was achieved. Drilled out of the Kalubik and into the Kuparuk at 8081' MD with a 9.40ppg MW (ECD I 10.23ppg) seeing a minor hydrocarbon show within the very tightly cemented very-fine grained sandstone. Continued on through into the Kuparuk C -1 seeing no show (no discrete cuttings to check for fluorescence – recycled Sak River 1A mud had very high background fluorescence requiring discrete cuttings for fluorescence analysis) and finally down into the Miluveach at 8734' MD. After leaving the I Kuparuk, ROP slowed to 100- 150fph rotating with severe ROP reductions while sliding with stacking 30kIb WOB. Started sliding at 8890' MD for directional control, experienced severe WOB stacking with low 10 -30fph ROPs dropping to 5fph, and slid that entire stand and the beginning of the next stand to I 9034' MD in an attempt to build the welibore inclination to 45 degrees with 25- 35klbs WOB and bit rotary 135rpm; severe stacking WOB appears to be partially attributed to the formation but primarily appears to be geometry related with no problems rotating observed. Drilled formation gas varied greatly throughout the interval predominantly related to the ROP (as shown by normalized gas) with an average 200 -400 I units through the HRZ and Kalubik. After entering the HRZ with a 9.30ppg MW and 10.10- 10.35ppg ECD, a 784 unit gas peak was observed at 7920' MD / 7715' TVD (within the HRZ); the following connections showed slight underbalanced conditions with the equivalent static densities (ESD) and large connection gasses were observed with large amounts of methane through pentane – 8028' MD Conn I 1798 units over background 107 units, 8123' MD Conn 6045 units over background 175 units. After the mud weight was increased, the connection gasses fell off over the next three connections with no connection gas observed at or after the 8507' MD connection. Drilled background gas fell off through the Kuparuk from 300 -400 units to 150 -200 units with the increased mud weight, and fell further back to 50- I 150 units after entering the Miluveach shale. Steam still gas analysis showed a large increase in the heavy hydrocarbons after entering the HRZ that picked up slightly through the Kuparuk, and started a - , >isimai ng 1 /4,1\N Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperry Drilling steady decline after entering the Miluveach; this heavy hydrocarbon show has been masked by the oil based mud to the legacy gas equipment. Lagged gas shows the hole is still in good condition, with a small 15 -20bbI effective annulus washout and no indications showing that the actual annulus is bigger than the flow- regime effective annulus. Losses continued steadily at a low 5bph rate throughout much of the drilled interval with the total estimated losses to the wellbore during this hole section at 300bbls. Drilled lithology consisted of: • Colville Group — [... 7837' MD/7635' TVD to 7860' MD/7656' TVD] o Formation continued from the previous day. o General Descriptions: Continuation of shale sequence from the previous day (gamma 162- 246api, resistivity 2ohmm, bulk density 2.40- 2.50g /cc). • Shale: Gray to dark gray, grading to siltstone, hydroturgid, slow swelling, hard to very hard, brittle, slightly calcareous, scattered micro carbonaceous material, PDC bit cuttings. • Siltstone: Gray to medium gray, occasionally dark gray, very argillaceous in part, hard, brittle, slightly calcareous, micro carbonaceous material throughout, visible shale interbedding. o Gas Description: Drilled formation gas fell off because of the sliding ROP, but normalized gas showed a continued increase in the formation gas before reaching the HRZ. Steam still analysis indicated an increasing ethane through pentane concentration in the mud. o Drilling Notes: Drilled this interval while sliding at 40 -50fph with WOB 4- 7klbs, flow 495gpm, and with bit rotary 139rpm to build the inclination to 15 degrees steady. • HRZ — [7860' MD/7656' TVD to 8053' MD/7844' TVD] o General Descriptions: High gamma signature gray to dark gray shale interval (gamma 170- 250api, resistivity 1- llohmm, bulk density 2.20- 2.65g /cc) with slight heavy hydrocarbon show with resistivity spike of 1 lohmm at 8027' MD / 7818' TVD. • Shale: Light gray, gray to medium gray, dark gray, dark gray in part, very argillaceous, hydroturgid, slow swelling, hard, brittle, occasionally fissile, slightly calcareous, PDC bit cuttings. • Siltstone: Gray to medium gray, dark gray, dark grayish -brown in part, very argillaceous, hard, brittle, slightly calcareous, carbonaceous material laminated throughout, shale interbedding, PDC bit cuttings. o Gas Description: Drilled formation gas started picking up as soon as the HRZ was entered and peaked with a formation gas peak (normalized confirmed true formation gas peak) at 7919' MD / 7714' TVD with 784 over a 381 unit background. After that peak, drilled formation gas averaged 250 -400 units with another minor formation gas peak to 457 units associated with two minor siltstone stringers at 8027' MD / 7818' TVD and 8036' MD / 7827' TVD with 10.80ohmm and 7.19ohmm resistivity respectively. Both peaks increased the heavy hydrocarbon concentrations within the mud, but steam still analysis did show a steadily increasing heavy hydrocarbon presence within the mud while drilling through HRZ (Pentane increased from 32 to 207ppm throughout the HRZ). The HRZ was drilled with a 9.30ppg Equivalent Static Density (ESD), which created an underbalanced condition with the ESD resulting in very large connection gasses after drilling the HRZ; the 10.20- 10.30ppg ECDs while drilling this interval were sufficient enough to prevent large shows. In addition, the presence of hexane was picked up with the gas chromatograph, but without any calibration gas for hexane, the quantity is unknown. The following connection gasses were all believed to have sourced from the HRZ (they diminished with increased depth as the mud system was weighted up to 10.40ppg ESD): • 8028' MD —1794 units over 107 unit background. • 8124' MD — 6045 units over 175 unit background. • Started weighting up mud system after this connection gas. • 8219' MD — 4488 units over 165 unit background. • 8315' MD — 3990 units over 120 unit background. • 8410' MD —132 units over 90 unit background. Brooks Range Petroleum Corporation HALLIBURTON I Sperr Driiiing • All connections thereafter showed no connection gas with the mud finally weig hted up to 10.40ppg ESD. o Shows: • Show Report #2a — HRZ Shale • HRZ — 7907' MD / 7702' TVD to 7960' MD / 7754' TVD • Non producible hydrocarbons. • Show Report #2b — HRZ Shale Sourced Connection Gasses • From low Equivalent Static Densities [ESD] with the HRZ Open ' • HRZ — 7907' MD / 7702' TVD to 7960' MD / 7754' TVD • Non producible hydrocarbons by conventional means based upon the source lithology. o Drilling Notes: The entire HRZ was rotary drilled to avoid the known issues with directional changes within the HRZ; therefore the build angle was held at 14 to 15 degrees while rotary drilling through this formation (and the Kalubik). ROPs averaged 200fph through the shales and fell off slightly through the interbedded siltstones in the middle of the formation to 100- 150fph. Drilled ahead with surface rotary 100rpm, flow ' 490- 495gpm, bit rotary 235- 24Orpm with drilling torque holding from 6.5 -7kfps with the exception of the silty middle section where drilling torque fell down to 6- 6.25kfps with the reduced ROPs. ' • Kalubik — [8053' MD/7844' TVD to 8081' MD/7871' TVD] o General Descriptions: Moderately high gamma shale. • Shale: Gray to medium gray, dark gray, rarely light gray, rarely grading to siltstone, hydroturgid, slow- moderately fast swelling, hard to very hard, brittle, ' slightly calcareous, PDC bit cuttings.. o Gas Description: Drilled formation gas fell off within this interval (was not influenced by the mud weight up as it had not yet started) to 190 -200 units; legacy gas extraction showed the gas to be composed of methane, ethane, and propane and the concentrations were slowly falling with increased depth. No stem still samples were caught within this interval. o Drilling Notes: This short interval was entirely rotary drilled while holding the 15 degree ' tangent to avoid the hole instability experienced with directional changes within the HRZ & Kalubik shales. Drilled ahead with surface rotary 98rpm, flow 490gpm, bit rotary 238rpm, WOB 5- 10klbs, with torque rising to 7.25- 8.0kfps. • Upper Kuparuk — [8081' MD/7871' TVD to 8448' MD/8215' TVD] o General Descriptions: Coarsening upward very fine- to fine - grained sandstone grading to siltstone throughout; fining up to very argillaceous siltstone with increased depth. • Sandstone: Clear to translucent, tan to light brown, predominantly very fine - grained, grading to siltstone throughout, sub rounded, well sorted, firm to hard, predominantly slightly calcareous, occasionally very calcareous, tightly- to very tightly- cemented, clay matrix cement, calcareously cemented in part, glauconite throughout, very weak bright yellow to white florescence, very weak to no cut. • Siltstone: Brownish gray, gray to medium gray, dark gray in part, grading to very fine- grained sandstone, firm to hard, brittle, slightly calcareous, occasionally slightly argillaceous, scattered glauconite in part, occasional bright yellow mineral fluorescence. ' o Gas Description: After entering the Kuparuk, there was an increase in the drilled formation gas from 195 to a peak of 540 units centered on 8093' MD before starting a slow steady fall with increased depth; legacy gas extraction equipment showed an increase in methane through propane during the 540 unit peak, and a trace amount of butane was measured (64ppm max), before it slowly fell out of the sampling with increased depth. At 8124' MD, a 6045 unit connection gas was observed from the HRZ which significantly increased the background gas levels for the remainder of the Upper t Kuparuk introducing higher amounts of methane through butane into the mud system (293ppm butane immediately after the connection lag). There appears to have been a possible minor gas peak in the two sandstone stringers encountered at 8320' MD / 8101' / 111111°,141 N Brooks Range Petroleum Corporation 1 HALLIBU I Sperr Drilling TVD and 8329' MD / 8109' TVD, but the show was interrupted and masked by the 8315' 1 MD connection gas (3990 units); this zone did show a true increase in the drilled background gas prior to the 8320' MD connection gas (normalized gas confirmed) with the legacy gas extraction equipment showing an increase in methane through butane (butane increased from 95 to 272ppm). Steam still data is only available for the lower • 1 portion of this interval but does appear to show the steady increase in the heavy hydrocarbons including hexane (unquantifiable w/o calibration gas). o Shows • Show Report #3 — Upper Kuparuk Sandstone 1 • Upper Kuparuk — 8086' MD / 7875' TVD to 8180' MD / 7966' TVD • Weak hydrocarbon show in an oil -wet formation. o Drilling Notes: Primarily rotary drilled the formation before starting stands after 8315' MD 1 with a 20 -30' MD slides to maintain the 15 degree inclination. While rotary drilling, used surface rotary 100- 115rpm, flow 495- 500gpm, bit rotary 235- 257rpm, and WOB 5- 12klbs; on bottom torque increased within the Kuparuk to a 7.5- 9.5kfp average as well as an increase in off bottom torque by 2kfps. While sliding, applied 10- 25klbs WOB with 30- 1 50fph ROPs, flow 490- 495gpm, and bit rotary 14Orpm. • Kuparuk C -1 — [8448' MD/8215' TVD to 8512' MD/8286' TVD] o General Descriptions: Medium- to coarse - grained sandstone. 1 • Sandstone: Clear to translucent, tan to light brown, yellow to orange, very fine - to fine - grained, occasionally medium- to coarse- grained, sub - angular to sub - rounded, moderately sorted, predominantly loose, rarely discrete cuttings, calcareous, calcareous to silica cemented, abundant coarse - grained glauconite, 1 no sign of fluorescence cut (unable to read fluorescence in loose sands because of contaminated OBM — need discrete cuttings to break open). o Gas Description: The raw drilled formation gas fluctuated heavily throughout the formation as a result of a variable ROP; however, normalized gas shows the presence of 1 a gas peak at the top of the Kuparuk C -1 that lasts until 8511' MD. Within this interval, the legacy gas extraction equipment did pick up a slight increase in the methane through butane before falling off at shortly thereafter with the reduction in the ROP. On the other 1 hand, steam still extraction actually showed a slight overall increase in the raw gas data, which if normalized, would show a steady increase in all heavy hydrocarbons while drilling through this zone. o Shows 1 • Show Report #4 — Kuparuk C -1 Sandstone • Kuparuk C -1 — 8436' MD / 8213' TVD to 8511' MD / 8285' TVD • Weak hydrocarbon show in an oil -wet formation. o Drilling Notes: Rotary drilled the formation with surface rotary 61 -81 rpm, flow 511gpm, 1 bit rotary 205- 225rpm, and WOB 2- 15klbs for a highly erratic 25- 125fph over a 6.75 - 8.25kfp on bottom torque. Multiple siderite- cemented sandstone lens were encountered where ROP slowed significantly, WOB stacked, and torque fell off 1- 1.5kfps. 1 • LCU — [8512' MD/8286' TVD] • Kuparuk A — [8512' MD/8286' TVD to 8734' MD /8500' TVD] o General Descriptions: Generally coarsening upward siltstone (gamma 75- 90api, resistivity 3- 4ohmm, bulk density 2.43- 2.55g /cc) interval with interbedded sandstones 1 throughout (gamma 20- 52api, resistivity 4- 5ohmm, bulk density 2.35- 2.4g /cc). • Siltstone: Brownish gray, gray to medium gray, dark gray, argillaceous, firm to hard, brittle, slightly calcareous, disseminated micro pyrite throughout, micro carbonaceous material throughout, no sign of fluorescence /cut. 1 • Shale: Dark brown to gray, gray to dark gray, hydroturgid , very slow -slow swelling, hard, brittle, slightly calcareous, mica, scattered micro carbonaceous material, sub angular to elongated PDC bit cuttings. • o Gas Description: Drilled background gas appears to increase with depth, but once normalized, the gas is fairly steady across the entire interval despite the varying 250 -325 unit raw gas readings; heavy gasses started slowly falling off with increased depth with 1 1 Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperr Driiiing the legacy gas extraction equipment and was mirrored with the steam still gas data — taking into account the increasing ROP, a normalized chromatograph data set would show a steady decline in all gas concentrations with increased depth. o Drilling Notes: Rotary drilled the entire interval with surface rotary 77- 100rpm, flow 490 - 505rpm, bit rotary 215- 24Orpm and WOB 8- 12klbs for a 100- 165fph ROP over drilling torque that increased to 8 -9kfps after entering the higher gamma siltstones. • Miluveach – [8734' MD /8500' TVD to 9034' MD/8788' TVD...] o General Descriptions: Slowly increasing gamma signature shale with increasing depth with occasional interbedded thin siltstone stringers (gamma 90- 105api, resistivity 1- 3ohmm, bulk density 2.50- 2.60g /cc). • Siltstone: Gray to medium gray, reddish brown in part, occasionally argillaceous, firm to hard, brittle, slightly calcareous in part, scattered micro carbonaceous material, occasional mica, no sign of fluorescence /cut. • Shale: Dark brownish -gray, gray to dark gray, hydroturgid, slow swelling, occasionally silty, hard, brittle, slightly calcareous, elongated PDC bit cuttings, no sign of fluorescence /cut. ' o Gas Description: Drilled formation gas fell throughout the interval with the falling sliding ROPs – normalized gas suggested a lower decline than the raw gas. Legacy gas extraction shows butane dropped out around 8900' MD and propane dropped out around 9030' MD; steam still extraction still shows C1 -05, although they do mirror the slow steady decline of the legacy gas extraction. o Drilling Notes: After finally exiting the Kuparuk, resumed sliding the first portion of every stand (occasionally the entire stand) to build the inclination from 15 degrees to the 45 ' degree target. Rotary drilled with 60- 100rpm, flow 495- 500gpm, bit rotary 205- 237rpm, and WOB 9- 13klbs for a 150- 160fph ROP over on bottom torque 7.75- 8.5kfps. During slides, drilled ahead with flow 495- 500gpm, bit rotary 138- 14Orpm, and with WOB 12- 20klbs for a slowly diminishing average ROP of 75 to 15fph towards the end of the ' interval with WOB stacking even higher to 20- 25klbs. o Formation bottom not reached – continued the following day. 16- Mar -2010 Attempted to continue drilling the 8.5" intermediate /production hole ahead from 9034' MD / 8788' MD to 9054' MD / 8807' TVD while sliding for directional control and encountering severe stacking WOB to 35klbs that reduced ROPs to an average 1 -2fph. With poor ROP, the decision was made to trip out to surface to reconfigure the BHA; the motor bend angle would be increased as well as remove one of the full -gauge stabilizers on the BHA. Circulated 2x annular volume and started tripping out to surface on elevators; drag was minimal during the trip out with only one minor tight spot at 3900' MD where 20klbs overpull was encountered. Losses were minimal both during the trip out and with the BHA at surface. Unloaded the nuclear sources, broke down and laid down BHA #3, and graded the Hycalog DTX619M -D6 1- 3- CT- A- X- 1- BT -PR. While testing BOPE, retooled the mud motor for a 1.50° bend and prepped BHA #4. Drilled lithology consisted of: • Miluveach – [... 9034' MD/8788' TVD to 9054' MD/8807' TVD...] o Formation continued from the previous day. o General Descriptions: Shale. • Shale: Dark brown, occasionally gray to dark gray, hydroturgid, slow swelling, hard, brittle, slightly calcareous, elongated PDC bit cuttings. o Gas Description: Overall low drilled formation gas from the low ROP – while legacy gas equipment shows propane continuing to fall out, the steam still shows a slight increase in the heavier components with the increased ROP across this interval. o Drilling Notes: Slid this interval with flow 500gpm, bit rotary 14Orpm, and WOB 20- 25klbs for an average 50fph ROP (increased slightly from the previous day). o Formation bottom not reached – continued after BHA trip. 1 Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperry Drilling 17- Mar -2010 Picked up and made up BHA #4, having increased the mud motor bend angle to 1.50 °, removed the stabilizer directly above the MWD /LWD tools, and replaced the bit with a Hycalog MSX616M -A3D. Loaded the nuclear sources, tripped in to 700' MD, and performed a shallow pulse test. MWD engineers noted abnormally high standpipe pressure and decided to trip out to surface to inspect the BHA. Found ' absorb pad in the MWD tools and gravel in the bit. Replaced the motor with the back -up and made up BHA #5 (same BHA configuration), and tripped in to 600' MD for a shallow pulse test. Abnormally high standpipe pressure was again detected and the decision was made to trip back to surface and replace the MWD /LWD tools with the back -up string. Picked and made up BHA #6, using the bit & mud motor from BHA #5 and the back -up MWD /LWD string. 18 Mar - 2010 Continued tripping in with BHA #6 and once on bottom, staged the pumps to fill pipe (460 strokes to fill pipe) and then brought the flow up to circulate the mud around at 440gpm with surface rotary 53rpm, bit rotary 174rpm, and torque averaging 6kfps. After working the last stand to bottom, resumed drilling the 8.5" intermediate /production hole section ahead from 9054' MD / 8807' TVD to 9737' MD / 9401' TVD ' through the Miluveach and upper Kingak formations (back on bottom 06:57hrs). While drilling ahead, the frequency of slide drilling increased within the first half of all the stands drilled as the directional build to the target 45 degree angle started. Sliding ROPs were highly variable from 5 -70fph averages using 10- 35klbs WOB and 120- 125rpm bit rotary with flow 435- 440gpm; multiple instances of stacking WOB were observed and the bit had to be picked off bottom, rotated down, and reoriented to continue drilling ahead occasionally. Rotary drilling continued ahead with a more steady but still variable average ROP ranging from 100- 150fph using 50 -80rpm surface rotary, 175- 205rpm bit rotary, and 5- 20klbs WOB while 1 watching the drilling torque increase from 7 to 9kfps across the interval. Prior to entering the Kingak, the mud weight was slowly increased to a 10.60ppg ESD. Drilled formation gas remained relatively low in the entire interval with the heavy gas concentrations slowly falling off with increasing depth; no formation gas peaks, abnormal peaks, or connection gasses were observed either. While the on -bottom torque steadily ' rose throughout the interval, the off - bottom torque stayed generally the same indicating the hole to be in great condition and the on- bottom torque increase to be directly related to drilling the shales and siltstones within the Miluveach and Kingak shale formations. As the hole angle increased above 25 ' degrees, the frequency of on- bottom torque spikes within the initial 30 minutes of rotary drilling immediately after a sliding interval steadily increased; this was directly associated with the less- efficient hole cleaning without surface rotary input to stir the cuttings with the drill pipe off the low -side of the wellbore. With the exception of less efficient hole - cleaning while sliding [expected], the hole is cleaning well and the wellbore is in good shape with no signs of instability; no cavings or connection gasses were seen within the drilled interval and in particular, the Kingak appeared to be stable. Lagged gas analysis coupled with PVT /cuttings volume analysis showed no increase in the effective annulus (flow regime) or the actual annulus with the estimated washout at — 20bbls for the entire open -hole section for an average ' open -hole diameter of 8.67 ". Losses continued in the interval with an initial 30bbls lost while tripping in with an intermittent 1 -2bph loss while drilling ahead (10bbls lost while drilling). Drilled lithology included: • Miluveach — [...9034' MD/8788' TVD to 9737' MD/9401' TVD] o Formation continued from the previous day. o General Descriptions: Large monotonous shale sequence occasionally grading to siltstone with a few siltstone /shale stringers towards the interval bottom. Gamma averaged 95- 115api for most of the interval with resistivity 1.5- 2.5ohmm with two 4ohmm ' spikes associated with very thin sandstone stringers. Bulk density averaged 2.50 - 2.60g/cc. • Shale: Gray to dark gray, brown to dark brown, hard, brittle, calcareous in parts, hydroturgid to hydrofissile, slow to moderate swelling, occasional micro mica, ' scattered carbonaceous material, occasional glauconite. • Siltstone: Light gray to gray, dark gray, medium brown in part, friable to slightly hard, occasional quartz grains scattered, micro mica, abundant glauconite, occasional limestone interbedding, rare pyrite, non calcareous. ' o Gas Description: Fairly monotonous 30 -70 unit drilled formation gas with no raw peaks, normalized peaks, or abnormal peaks observed. With the legacy gas extraction, Brooks Range Petroleum Corporation 1 HALLIBURTON 1 Sperr Drilling continued to pick up consistent methane and ethane with trace amounts of inconsistent 1 propane observed throughout the sample. Steam still gas extraction mirrors the legacy equipment trends, but ethane through pentane were being consistently measured, although the heavier gases were in trace amounts. o Drilling Notes: Continued sliding the first 40 -50' MD of every stand before engaging the 1 surface rotary to build inclination to the target 45 degrees. Slid with flow 435- 440gpm, bit rotary 122- 124rpm, and WOB 10- 15klbs for an average sliding ROP of 50fph. Rotary drilled with surface rotary 47- 80rpm, flow 435- 455gpm, bit rotary 170- 210rpm, and WOB 5- 10klbs for a 100fph ROP (controlled by rising SPP tripping pop -off valves at 2950psi) 1 over drilling torque 8- 8.75kfps. o Formation continued the following day. 1 19- Mar -2010 Continued drilling ahead 8.5" intermediate /production hole from 9737' MD / 9401' TVD to 10965' MD / 10280' TVD while initially sliding and rotating each stand down while building to the target 45 degree hole angle. With the target angle achieved by —10000' MD, only intermittent sliding was used to keep the 1 wellbore on target for the remainder of the drilled interval. Sliding ROPs varied heavily with the formation and hole tortuosity with the sliding ROPs improving after the target angle was achieved; sliding ROPs fluctuated from 10 -50fph with WOB 15- 35klbs, flow 435gpm, and bit rotary 125rpm. While rotary drilling, the ROPs initially held at 120- 150fph but fell after 10300' MD when the pop off valves were repeatedly tripped when the standpipe pressure reached 2950psi. After tripping the pop -off valves twice, ROP was limited for the remainder of the well to keep the standpipe pressure below 2900psi. The remainder of the day's interval was drilled with an 80- 100fph average ROP; the interval was drilled with surface rotary 70- 11 Orpm, bit rotary 195- 235rpm, flow 435- 445gpm, WOB 5- 20klbs, with drilling torque holding steady at 9- 10kfps. Torque was actually increasing throughout the interval, but appeared to hold steady because of i n the falling ROP from the standpipe pressure ROP restrict ( normalized torque increase). o q showed an increase ) Drilled formation gas increased after entering the Kingak with heavy gas concentrations picking up as well 1 as well as no gas peaks connection gasses observed. The wellbore remained in great condition with no signs of wellbore instability observed despite a slight increase in off bottom torque towards the end of the drilled interval. Only minor hole cleaning problems affected the drilling immediately after sliding intervals but cleared up immediately after sufficient surface rotary/circulating. 1 Throughout the day, the mud weight continued to increase which necessitated the centrifuge being turned on in an attempt to hold the mud weight at 10.60ppg ESD. Drilled lithology consisted of: • Miluveach — [...9737' MD/9401' TVD to 9804' MD/9450' TVD] o Formation continued from the previous day. o General Descriptions: Slowly dropping gamma signature shale grading down to siltstone towards the end of the interval with gamma 85- 110api, resistivity 0.5- 1.5ohmm, porosity falling from 35 to 28pu with increasing depth, and bulk density increasing from 1 2.55 to 2.60g /cc with increasing depth. • Shale: Light to medium gray, light brown in part, dark gray in part, hard, friable, brittle in part, slightly silty, fast swelling, moderately calcareous, common limestone interbedding, rare glauconite, PDC bit cuttings 1 • Siltstone: Light gray to gray, dark gray, medium brown in part, friable to slightly hard, occasionally fine lower quartz grains, common glauconite, slightly calcareous. 1 0 Gas Description: Drilled formation gas fell through this interval as a result of sliding for most of this interval. Legacy gas extraction still picked up methane and ethane with trace amounts of propane while the steam still extraction picked up primarily methane with very low amounts of ethane through pentane. o Drilling Notes: Slid the first portion of this interval to a 41 degree inclination using WOB 7- 9klbs, flow 440gpm, and bit rotary 122rpm for a 40 -45fph ROP. Engaged rotary for the last 20' of the formation with surface rotary 42- 80rpm, flow 433gpm, bit rotary 162 - 200rpm, for 76- 100fph average ROP over 8.5- 9.5kfps on bottom torque. • J-4 — Kingak F — [9804' MD /9450' TVD to 9982' MD/9582' TVD] Brooks Range Petroleum Corporation 1 HALLI B U RTO N I Sperry Drilling o General Descriptions: Coarsening upward sequence of primarily siltstones and shales ' with occasional sandstones interbedded. Upon entering the Kingak F, gamma dropped to 60- 65api, resistivity increased from 1.5 to 3.0ohmm, and porosity decreased. With increased depth the gamma started gradually climbing to 100api before jumping to 125api just before the formation bottom was reached; resistivity dropped back down to 1.5ohmm, and porosity gradually increased with depth from 17 to 48pu while the bulk density remained steady at 2.55- 2.60g /cc with occasional siderite cemented stringers towards the Kingak F bottom. • Shale: Light to medium gray, occasionally brownish -gray, rare greenish -gray, ' hard, friable, brittle, fast swelling, hydroturgid, grading to hydrofissile towards the bottom, very calcareous, occasional scattered glauconite, occasional scattered carbonaceous material, PDC bit cuttings. ' • Siltstone: Light gray to gray, dark gray, medium brown in part, occasionally tan to light brown, friable to slightly hard, grading to fine -lower grained quartz sandstone in part, sub angular, abundant glauconite, micro mica, calcareous. o Gas Description: Drilled background gas averaged 50 -80 units across this interval with ' the low levels primarily attributed to the lower ROP. No peaks both raw and normalized were observed and no connection gasses were observed. The heavy hydrocarbon accumulation slowly increased across the formation with ethane and propane ' consistently picked up and increasing on the legacy gas equipment: the heavy hydrocarbon increase was confirmed with the steam still with a significant increase in the heavy hydrocarbons at the formation base. o Drilling Notes: Rotary drilled most of this formation with surface rotary 73- 80rpm, flow 435gpm, bit rotary 193- 200rpm, and WOB 11- 16klbs for a steady 90fph average ROP over a 8.75- 9.25kfp on bottom torque. Slid with WOB 10- 17klbs, flow 437gpm, and bit rotary 122rpm for a 45 -60fph average ROP. • J-3 — Kingak E — [9982' MD/9582' TVD to 10140' MD/9691' TVD] o General Descriptions: Fairly monotonous shale sequence. Large 248api gamma spike denoted the top of the Kingak E along with a drop in the resistivity to 1.0- 1.5ohmm. The rest of the formation remained fairly benign with a near - steady 100- 110api gamma, 1- 2ohmm resistivity, steady 38 -43pu porosity, and bulk density 2.52- 2.58g /cc. • Shale: Medium gray, dark to very dark gray, brownish -gray in part, hard, occasionally very hard, very brittle, moderate to fast swelling, predominantly hydrofissile, slightly calcareous in part, carbonaceous material, disseminated ' pyrite, glauconite throughout, no sign of fluorescence cut. • Limestone: White to opaque, tan to very light brown, firm, soft in part, occasional micro carbonaceous material, no sign of fluorescence or cut. o Gas Description: Drilled formation gas picked up in this formation with the higher ROPs ' (no increase in normalized gas) and heavy hydrocarbons concentrations increasing with depth. Legacy gas equipment picked up continuous methane through propane throughout and started picking up traces of butane at 10050' MD. Steam still gas ' extraction confirmed the steady increase in methane through pentane with trace amounts of hexane (unquantifiable) observed. o Drilling Notes: Rotary drilled most of this stand with one final 25' MD slide at the formation base to bring the hole inclination to the target 45 degrees. Rotary drilled with surface rotary 96rpm, flow 431 gpm, bit rotary 218rpm, and WOB 9- 17klbs with drilling torque 8.25- 9.5kfp on bottom. While sliding, the WOB averaged 28- 33klbs, flow 435gpm, and with bit rotary 122rpm for a 40 -65fph average ROP. • J -2 — Kingak D — [10140' MD/9691' TVD to 10585' MD /10005' TVD] ' o General Descriptions: Interbedded shale and argillaceous siltstone interval; occasional longer shale sequences but primarily individual siltstone /shale beds were less than 5' TVD thick. Gamma dropped to 65 -70api gamma initially after entering the Kingak D and remained below 85api for the first 30' TVD before cycling between — 75 -80api for siltstone intervals and 95- 110api for shale intervals for the remainder of the formation. Resistivity also initially increased from to 3.5- 4.0ohmm after entering the Kingak D, but then began 1 Brooks Range Petroleum Corporation 1 HALLIBURTON I Sperry Drilling cycling between 1.5 and 4ohmm along with the gamma through the siltstone (higher ' resistivity) and shale intervals. Porosity generally decreased whenever siltstone was encountered, and the bulk density averaged 2.55- 2.65g /cc for the interval with the exception of 3.0 +g /cc siderite cemented stringers encountered towards the formation bottom. • Shale: Gray to dark gray, brownish -gray, hard, occasionally very hard, brittle to very brittle, moderate to fast swelling, hydroclastic to hydroturgid, rarely hydrofissile, non- to slightly- calcareous throughout, occasional visible carbonaceous fragments, rare carbonaceous laminations, occasional ' disseminated pyrite, no sign of fluorescence /cut. • Siltstone: Gray, brown to dark gray, hard, brittle, occasional very brittle, argillaceous, predominantly slightly hydrophilic, slow swelling, occasional micro ' carbonaceous material, scattered micro glauconite, occasional disseminated pyrite, rare massive pyrite fragments. o Gas Description: Drilled formation gas fluctuated from 100 to 150 units with no major peaks (raw or normalized) observed. Legacy gas extraction again picked up consistent ' methane through propane with butane coming and going intermittently; steam still samples confirmed the steady presence of methane through pentane with hexane observed intermittently. o Drilling Notes: Rotary drilled nearly the entirety of this stand with the exception of one ' 23' MD slide to increase the inclination from 44 to 45 degrees. Rotary drilled with surface rotary 95- 100rpm, flow 430- 435gpm, bit rotary 215- 223rpm, and with WOB 15- 20klbs falling to 10- 15klbs by the formation bottom for a slowly declining ROP from 100 to 75fph (standpipe pressure limitations from pop -off valves) with drilling torque holding pretty steady 8.75- 9.5kfps. During the small slide interval, drilled with WOB 30- 35klbs, flow 440gpm, and bit rotary 123rpm for a low 20 -35fph average ROP from the stacking WOB. • J -1 — Kingak C — [10585' MD /10005' TVD to 10710' MD/10094' TVD] ' o General Descriptions: Monotonous shale sequence with a few small siderite cemented siltstone stringers towards the top and bottom of the formation. Gamma averaged 110- 125api for the shales with the argillaceous siltstone stringers dropping down to 80- 90api. Resistivity remained low at 1.5- 2.0ohmm across the formation as well as a slow shifting 35 -43pu porosity and 2.55- 2.65g /cc bulk density with 2.7- 2.8g /cc in the siderite- cemented stringers. • Shale: Medium gray to dark gray, light gray in part, silty in part, hard, brittle, slow ' to occasionally moderate swelling, hydroclastic to hydroturgid, slightly calcareous, PDC bit cuttings, no signs of fluorescence /cut. o Gas Description: Drilled formation gas increased slightly upon entering the Kingak C to 190 -210 units from a 150 -160 units in the previous formation. Legacy gas extraction l showed methane through butane increasing slowly throughout the formation; steam still analysis showed a steady heavy gas concentration. o Drilling Notes: Rotary drilled this interval with surface rotary 99- 106rpm, flow 441gpm, - bit rotary 224- 23Orpm, and WOB increasing with depth from 5 to 16klbs for a falling ROP from 80 to 70fph over a near steady drilling torque of 8.75- 9.0kfps. • J-1 — Kingak B [10710' MD /10094' TVD to 10874' MD/10213' TVD] o General Descriptions: Silty clay sequence with occasional siderite- cemented siltstone ' stringers. Formation top denoted by siderite cemented siltstone stringer with gamma dropping down to 60api, with resistivity increasing from 1.5 to 6.14ohmm, and a drop in the porosity. Shales in the interval averaged 105- 120api gamma, 1.5ohmm resistivity, and bulk density averaged 2.53- 2.64g /cc. • Shale: Medium to dark gray, light gray, medium brown in part, silty, hard, brittle, moderate swelling, hydroclastic - hydroturgid, slightly to moderately calcareous, PDC bit cuttings, no sign of fluorescence /cut. o Gas Description: Drilled formation gas fell off with decreased to a 150 unit average; ' however, normalized gas showed a slight increase at the top of the formation that decreased with increased depth. Both legacy and steam still analysis showed a slight 1 /#44%**Y1)**/\, Brooks Range Petroleum Corporation 1 I HALLIBURTON I Sperry Drilling increase in the heavy gas concentrations as well as a definite decrease in the gas ratios I signifying a heavy hydrocarbon influx (albeit small) from the formation. o Drilling Notes: Rotary drilled this interval with surface rotary 96rpm, flow 441gpm, bit rotary 22Orpm, and with WOB varying from 11- 18klbs for a highly erratic ROP ranging from 25 to 90fph over slow declining torque from 8.75 to 8.0kfps. I • J - – Kingak A – [10874' MD/10213' TVD to 10965' MD/10280' TVD...] o General Descriptions: Shale interval with the top marked by a higher -gamma signature claystone (144api with an increase in porosity and a decrease in bulk density to 2.42g /cc) I with infrequent very thin siderite cemented siltstone stringers. After the initial high gamma shale, gamma dropped down to an average 110- 120api gamma with 1.5ohmm resistivity, porosity averaged 40pu, and bulk density averaging 2.57- 2.63g /cc with the exception of the thin 2.9- 3.0g /cc siderite cemented stringers. I • Shale: Medium to dark gray, light gray, occasionally tan, hard, brittle, slow swelling, hydroclastic to hydroturgid, slight to moderately calcareous, PDC bit cuttings. • Claystone: brown to gray, soft to slightly hard in par silty, grading to shale, I splintery, non - calcareous. o Gas Description: Drilled formation gas initially increased with the high gamma peak at the top of the formation to 220 units before falling to 137 units and holding at 150 -200 I units for the rest of the stand. Normalized gas showed a small steady increase from 10950' to the end of the interval with the legacy gas extraction equipment observing a near - steady heavy hydrocarbon concentration while the steam still observed a definite increase in heavy hydrocarbons with increasing depth as well as a marked increase in I the gas ratios (C1 /C2 through C1 /C5). o Drilling Notes: Rotary drilled this interval with surface rotary 98rpm, flow 438gpm, bit rotary 22Orpm, and with WOB 15- 20klbs for a steady 90- 110fph ROP over an on bottom torque that increased slightly to a steady 8.5- 8.9kfps. 1 o Formation bottom not reached – continued the following day. 20 Mar - 2010 I Wait on the 10965' MD bottom's up to come to surface to analyze the cuttings and drilled formation gas to pick the core starting point. Without the necessary evidence for the Sag River top, decision made to drill ahead to 10982' MD and reevaluate the cuttings. Repeated this procedure at 11002' MD and again at 11005' MD where evidence of the Sag River top was finally received. Drilled the remainder footage down I with a variable 50- 100fph ROP using surface rotary 75- 90rpm, bit rotary 195- 210rpm, flow 440gpm, and WOB 10- 12klbs while the on bottom torque fluctuated from 8- 9kfps. Drilled formation gas from these intervals averaged 100 -210 units varying with the ROP and there was also a general increase in the heavy hydrocarbons concentrations as part of the total gas sample [decreased hydrocarbon ratios]. With I the core point selected at 11005' MD / 10309' TVD, started circulating and conditioning the hole for the trip out with flow 445gpm, surface rotary 100rpm, and bit rotary 225rpm while drilling torque was holding close to 7kfps while reaming out (0.1- 0.2kfps higher while backreaming) and 5.5- 5.75kfps with the I drillstring stationary. Gas while circulating fell off to 15 -35 units (dependent on flow through trap) with the lighter fractions falling off faster than the heavier fractions as is expected with the oil -based mud. Hole condition continued to look good throughout the interval, with the final lag adjustment through this section was 50bbls: 20bbls surface equipment correction (flow lines and lag to unit) and 30bbls downhole I effective annulus enlargement. The effective annulus as defined by the gas lag (flow regime) shows the open hole has increased to an average 8.716" diameter. While 'scratching and sniffing' for the Sag River, the PWD dropped consistently down to 11.17- 11.19ppg EMW after the drilled cuttings were circulated out of the wellbore; after circulating the 2.3x annular volume at final section TD, the PWD continued to hold at I 11.18ppg EMW with no cuttings at surface indicating a clean wellbore. Took a final survey on bottom, pumped a dry job, and started tripping to surface on elevators. The entire trip went very well with no tight spots encountered and only 16bbls lost during the entire trip to surface. With the BHA to surface, unloaded the nuclear sources, downloaded MWD, broke down, and laid down BHA #6, while grading bit I #4 — Hycalog MSX616M -A3D — a 1- 1- CT- N- X- I- NO -CP. Cleared the rig floor and prepared to start building BHA #7 [coring assembly]. / 1 1 Brooks Range Petroleum Corporation 1 HALLI B U RTO N I Sperry Drilling • J -1 — Kingak A — [...10965' MD/10280' TVD to 10987' MD/10296' TVD] o General Descriptions: Continuation of shale sequence with gamma 100- 120api, resistivity 1- 3ohmm, bulk density 2.50- 2.65g /cc & 35 -40pu porosity. • Shale: Medium to dark gray, light gray in part, silty, hard to very hard, brittle, slow to moderate swelling, hydroclastic to hydroturgid, slightly calcareous in part, trace glauconite, PDC bit cuttings, no sign of fluorescence /cut. o Gas Description: Drilled formation gas held a steady 150 -200 unit average across the interval with steady amounts of methane through butane observed with the legacy gas extraction and slightly increasing ethane through pentane observed with steam still gas extraction. o Drilling Notes: Continued rotary drilling this stand down with surface rotary 80- 90rpm, flow 425- 440gpm, bit rotary 190- 205rpm, and with WOB 12- 17klbs over a drilling torque ' of 8.0- 8.5kfps. • Sag River — [10987' MD/10296' TVD to 11005' MD/10309' TVD...] o General Descriptions: Slight coarsening downward sequence of very fine to fine grained sandstones with a siltstone /shale sequence towards the formation top. ' • Sandstone: Clear to translucent, opaque to light gray, rarely tan, very fine lower to very fine upper grained, occasionally fine grained, sub angular to angular, sub round in part, sub spherical to elongated, predominantly quartz, rare lithic fragments, hard to very hard, brittle, calcareous, tightly silica to calcareously cemented, scattered glauconite, white to very bright yellow florescence, good milky white cut, vary pale brown stain, weak sharp hydrocarbon odor. o Gas Description: Drilled formation gas averaged 30 -50 units across this interval with even heavy hydrocarbon concentrations as picked up by both the steam still and legacy gas extraction equipment. o Drilling Notes: Scratched and sniffed down to bottom with surface rotary 90rpm, flow 425gpm, bit rotary 210rpm, and with WOB 5- 15klbs fora 90- 120fph average ROP over a ' slightly higher 8.9- 9.15kfp on bottom torque. o Formation bottom not reached — continued after trip for core bit. ' 21- Mar -2010 Finish picking up coring bit assembly (BHA #7) and start tripping to bottom on elevators. Stop at 2600' MD, slip and cut drilling line, and fill pipe. Continue tripping in on elevators, stopping once more at 6090' MD to fill pipe /circulate briefly. Started taking losses while tripping in at 10250' MD which continued to • worsen with increased depth; by the start of washing /reaming at 10790' MD, 20bbls had been lost for the entire trip in, presumably from the BHA surge with the high running speeds to bottom (60fpm). Engaged surface rotary at 30rpm and washed down to bottom at 150gpm (bit rotary 70rpm) while seeing no losses despite a calculated 11.10ppg ECD. Once within 10' of bottom, circulated for 2200 strokes before the ' coring started at 11005' MD (15:08hrs) with surface rotary 42- 44rpm, flow 155- 160gpm, bit rotary, 85- 90rpm, and WOB 7- 10klbs. Coring ROP varied with the lithology drilled from an intermittent <5 to a steady 20fph throughout; additionally, torque & standpipe pressure fluctuated with the ROP, with the higher torque & lower standpipe pressure observed with the higher ROP- drilled Sag River sandstone. ' With the limited cuttings to surface (poor hole cleaning parameters) and gas data, the preliminary results of the core indicate that the core encountered the Sag River sandstone from 11020' to 11050' MD. The cuttings arriving at surface were heavily contaminated with LCM material (BaraCarb) and a very tar -like 1 filter cake that was scraped off the wellbore wall on the trip in. After reaching the core TD of 11064' MD (19:59hrs), circulated 1x annular volume (including 30bbI estimated annular washout) with no surface rotary, flow 195- 200gpm, standpipe pressure 1385psi, and bit rotary 55rpm. After bottoms up lag from coring, shut down the pumps, and started tripping out on elevators to 10847' MD while encountering no problems. While tripping in, background gas averaged 20 -30 units and steadily increased once open - hole lag started reaching the surface with an eventual peak of 108 units with bottoms up; thereafter, gas fell down to a 15 -20 unit background prior to cored formation gas coming to surface with the max coring gas 197 units centered on the sandstone within the middle of the cored interval. The wellbore showed no ' signs of instability without any cavings or connection gases observed. The effective annulus (as defined by the flow regime through gas data) remained 30bbls over gauge for the entire 8.5" hole section (as well Brooks Range Petroleum Corporation 1 HALLIBURTON I S perry Drilling as the 6.5" core interval) giving an average hole 8.716" hole diameter to TD; the small calculated ' washout, the very low drag while tripping in, and the lack of cavings all indicate that the wellbore continued to remain in great condition. Cored lithology consisted of: • Sag River — [... 11005' MD/10309' TVD to 11064' MD/10353' TVD...] o Formation continued from after trip for core bit. o Sag River C — Top at 11031' MD / 10328' TVD o General Descriptions: Very fine grained tightly cemented sandstone capped by an argillaceous siltstone grading to shale with siltstone grading to shale beneath. • Sandstone: Clear to translucent, opaque to light gray, rarely tan, very fine lower to very fine upper grained, occasionally fine grained, sub angular to angular, sub round in part, sub spherical to elongated, predominantly quartz, rare lithic fragments, hard to very hard, brittle, calcareous, tightly silica to calcite cemented, scattered glauconite, bright white to very bright yellow fluorescence, good milky white cut, very pale brown stain, weak sharp hydrocarbon odor, visible degassing. o Gas Description: Drilled formation background gas averaged 50 -55 units and there was one formation gas peak at 11022' to 11053' MD of 197 units (normalized gas confirmed true gas peak). Heavy gas concentrations increased within the show zone on both the legacy and steam still gas extraction systems, with the legacy gas extraction picking up ' consistent ethane through propane with traces of butane and the steam still picking up consistent ethane through pentane as well as unquantifiable amounts of hexane (no calibration gas) over the background /recycled gas levels. Using the steam still gas data, there was a clear reduction in the hydrocarbon ratios within the show interval that fell within the light oil -zone. o Shows: Show Report #5 — Sag River Sandstone • Sa g River — 11022' MD / 10322' TVD to 11053' MD / 10345' TVD • Steam still gas extraction coupled with the core sampling indicates a light oil hydrocarbon- bearing formation. o Drilling Notes: Cored through this interval with 42 -44rpm surface rotary, flow 155 - 160gpm, bit rotary 85- 90rpm, and WOB 8- 10klbs for a variable ROP dependent on the lithology. In the siltier Sag River at the top and base of the Show sands the ROP averaged 5 -10fph with torque 6- 7.25kfps and SPP 1100 -1130 psi. While coring the show interval, ROPs picked up to 20fph with SPP falling back to 1070psi and on bottom torque increasing to an average 7- 7.5kfps. 1 o Formation bottom not reached — continued after trip for rotary drilling assembly. 22- Mar -2010 Continued tripping out with the coring BHA to surface encountering good hole conditions with no tight spots or excessive drag observed. Stopped to circulate briefly at 10100' MD and once again to circulate at 6165' MD; the latter circulation was extended until one annular volume was circulated around with trip gas rising to a peak of 71 units during this circulation. Pulled 4 more stands, pumped a dry job, and ' continued tripping to surface on elevators. Once at surface, broke down coring BHA, unloaded core, and prepared for BHA #8 to drill the remainder of the well. With rig floor clear, picked up and built Schlumberger BHA #8 Triple Combo BHA with Stethoscope and proVision LWD tools with no mud motor (no directional control) while re- running Bit #3 (Hycalog MSX616M -A3D graded 1- 1- CT- N- X- I- NO -CP). ' Loaded nuclear sources, built the remainder of the BHA, and started tripping in on elevators to 8157' MD, stopping to pulse test MWD /LWD at 5660' MD. Losses during the trip out post- coring were minimal at 7bbls and no losses were observed while building the BHA or during the trip in. ' 23- Mar -2010 Continued tripping in with BHA #8 from 8157' MD towards bottom on elevators until tight hole conditions were first experienced at 8700' MD as the new stiffer BHA entered the build section to the 45 degree ' tangent; the previous BHA was much more flexible. Engaged surface rotary to 90rpm and staged the flow rate to 440gpm at 9018' MD and started washing /reaming stands down to work the stiffer BHA through the build section. The flow rate was temporarily dropped to 330- 340gpm from 9592' to 9785' MD 1 1V \ ' Brooks Range Petroleum Corporation 1 HALLI B U RTO N I S perry Drilling but was soon brought back to 390- 410gpm when the low flow rate proved troublesome for MWD /LWD I detection. After the 10070' MD connection, the rig attempted to trip in on elevators but stacking weight at 10133' MD required washing and reaming to work the remainder of the stand down. Once on bottom, reamed the 6.5" core interval open to 8.5" using 10- 15klbs WOB, surface rotary 90- 100rpm, and flow 440gpm for reaming ROPs of 10 -40fph using 8.5 to 9.5kfps torque. Started new production hole at I 11064' MD at 18:47 and rotary drilled ahead with the same parameters that were used to ream the core interval; ROP initially held at 30fph, but fell to <5fph after encountering stacking WOB (from 20 to 30klbs) and falling torque (9.5 to 8.0kfps) at 10898' MD. Continued rotary drilling ahead to 11141' MD / 10407' TVD while battling stacking WOB, high torque with frequent peaks in excess of 10- 12kfps stalling the top I drive (torque limiter), and low ROPs for the remainder of the interval. With sufficient rathole for the MWD formation pressure test, pulled off bottom and started circulating in preparation for the StethoScope formation pressure evaluation tests. While tripping in, trip gas picked up from 20 units (beginning of I open -hole lag) and peaked at 112 units from —9000' MD. The remaining trip in resulted in low trip gas from 25-45 units as a result of washing and reaming each stand to bottom. Once on bottom, the low ROPs kept the drilled formation gas relatively low at 25 -60 units with occasional minor peaks of 100 -120 units observed and no connection or ESD gases were observed. The wellbore remained in good I condition with no signs of instability or underbalanced conditions (average mud weight 10.70- 10.80ppg). The annulus washout as defined by the effective annulus through the flow regime increased by 3bbls to a total of 33bbls washout for the entire wellbore; this equates to a 8.73" average diameter for the entire 8.5" I hole section. In general, torque and drag remained high while both tripping and drilling with BHA #8, which was most likely from the stiffer BHA (5 stabilizers within 135' of the bit) configuration compared to the previous. Drilled lithology consisted of: • Sag River — [... 11064' MD/10352' TVD to 11087' MD/10369' TVD] I o Formation continued from after the rotary drilling assembly trip. o General Descriptions: Continuation of the coarsening downwards sandstone becoming more calcareous with increasing depth. • Sandstone: Light gray to gray, soft, friable, very fine upper to very fine lower, I occasionally fine lower, quartz grains, sub round to sub angular, medium sort, white to very light gray calcareous clay cement, very silty, abundant glauconite, very pale brown stain. o Gas Description: Drilled formation gas fell off to hold steady at 35 -50 units with both the I steam still and legacy gas extraction showing a holding level of heavy hydrocarbons within the mud (legacy extraction only picking up methane through propane). o Drilling Notes: ROPs increased to 40fph while drilling out the rest of the Sag River with I surface rotary 95rpm, flow 440gpm, and WOB 13- 20klbs over on bottom torque of 9.5- 9.6kfps. • Shublik — [11087' MD/10369' TVD to 11141' MD /10407' TVD...] o General Descriptions: Coarsening upward sequence of argillaceous siltstones grading ii to shale. Top of the Shublik is marked by a sharp change from the 48api gamma sandstones of the Sag River with a shale stringer with 248api gamma, resistivity 20- 24ohmm, 6pu porosity, and 2.83g /cc bulk density. After crossing the high signature shale I maker, gamma read a highly variable 42- 118api, and bulk density initially held 2.67g /cc and fell down to 2.60g /cc before rising back 2.70g /cc. • Shale: Medium to dark gray, occasionally brown, soft, increasing hardness with depth, slightly silty, slightly micaceous, calcareous, common glauconite l interbedded, trace pyrite, thin limestone interbedded, occasional tabular cavings. o Gas Description: Drilled formation gas ranged from 25 to 120 units across the formation interval but the peaks appeared to be independent of the ROP with the normalized gas showing an increase in gas from the Sag River formation. Legacy and steam still gas I extraction showed an increase in the heavy hydrocarbons once normalized for ROP, which was expected with the Shublik formation being a suspected source for the Ivishak (Prudhoe Bay to the East). o Drilling Notes: After entering the Shublik, ROPs dropped off initially to 20fph before I increasing to 50fph with the lower gamma formation with 95- 105rpm surface rotary, 1 Brooks Range Petroleum Corporation 1 HALLIBURTON 1 Sperry Drilling 440gpm flow, and stacking WOB from 20- 24klbs increasing from 8.4 to 9.7kfps with I increasing depth. o Formation bottom not reached — continued the following day. 24- Mar -2010 I Pulled up one stand and performed formation pressure tests per Schlumberger's StethoScope procedures with no surface rotary, flow 470- 500gpm, and standpipe pressure holding at 2640 to 2905psi. Background gas fell back to 15 -25 units while circulating and the PWD EMW held at 11.30ppg with 10.75ppg SOBM going around the well. Once completed, went back to bottom and resumed drilling the I 8.5" intermediate /production hole ahead from 11141' to eventual TD at 11414' MD / 10601' TVD. Drilling encountered severely reduced ROPs caused by stacking WOB and both high on- and off - bottom torque throughout the entire interval. This interval was drilled with surface rotary 110- 120rpm, flow 440- 480gpm, I and 15- 40klbs WOB resulting in 5 -50fph average ROPs mostly dependent on the bit and stabilizer interaction with the drilled lithology which initially consisted of the Shublik shales and limestones followed by the Ivishak cherts and sandstones. Off bottom/ zero WOB torque averaged 7.5 -8kfps with the on bottom torque typically 10kfps+ with multiple fast spikes to 15kfps (torque limiter high- setting for the I interval) that caused the surface rotary to stall out. These frequent very fast torque spikes occurred with high WOB and may have been the result of the 5" drill pipe buckling within the wellbore causing the torque to rapidly climb until the top drive was stalled (via the torque limiter). Drilled formation gas remained low throughout the interval at 30 -70 units with one peak of 230 units observed from 11209' MD I (top of Ivishak). With the highly erratic ROPs across the formations, picking gas peaks with the normalized gas was inhibited; however, it appears that there were no formation gas peaks or a noticeable rise within either the Shublik or Ivishak with the exception of one small peak at the Ivishak formation top. I No connection gases were observed. Upon reaching TD, the rig circulated 1.75x the annular volume (including 45bbls open -hole washout) with surface rotary 110rpm and flow 435gpm while working the pipe with off -bottom torque of 8.75kfps while reaming down and 9.25kfps while reaming out. With the circulation complete and no signs of excessive cuttings indicating more wellbore cleaning was needed, I started tripping out on elevators to surface reaching 6636' MD as of midnight. The trip out went well with no losses observed despite the high pulling speeds (60fpm rising to 160fpm at 8000' MD) with very little drag encountered; the only tight spot was withl5klbs overpull observed at bit depth 8900' MD. The wellbore remained in good condition with no signs of wellbore instability or underbalanced conditions I (finished the interval with a 10.80ppg EMW) and gas analysis indicated that the effective annulus grew to 15bbls to a total 45bbls over gauge; the average hole diameter for the entire 8.5" intermediate /production interval was 8.803" as of TD. Despite the high mud weights, there were no losses while drilling or tripping I and the net loss for the entire 8.5" hole section was 425bb1s. Drilled lithology consisted of: • Shublik — [...11141' MD /10407' TVD to 11207' MD/10456' TVD] o Formation continued from the previous day. o General Descriptions: This portion of the formation was a coarsening upwards sequence with siltstone grading to shale with two high gamma signature peaks (gamma 230api) before grading down to a massive limestone sequence; just prior to leaving the Shublik and entering the Ivishak, there was a 5' MD thick shale with a high 190api gamma signature. Shales had gamma 125- 150api background, and bulk density I 2.72g /cc. The limestone interval at the base had gamma 40- 75api, erratic high resistivity, low 5 -14pu porosity, and 2.68- 2.70g /cc density. • Shale: Medium to dark gray, occasionally very dark gray, medium to dark brown I in part, silty, scattered carbonaceous material, very calcareous, trace visible limestone interbedding, occasional carbonaceous material stringers. • Limestone: Opaque to white, very light gray in part, occasionally tan to very light brown, firm to hard, fissile in part, crystalline, occasional interbedding I carbonaceous material, trace pyrite, rare glauconite, sulfuric, weak dull yellow to gold fluorescence. o Gas Description: Drilled formation gas remained low through this interval at 35 -50 units with the legacy gas extraction picking up steady methane through propane and the steam I still extraction picking up a very slowly increasing ethane through pentane concentrations. 1 Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling o Drilling Notes: ROPs fluctuated from 30 -55fph through the Shublik (higher ROP in ' higher gamma sections) while drilling with 105- 118rpm surface rotary, 460- 480gpm flow, and WOB stacking with increased depth from 24- 35klbs over a slow climbing torque from 10 to 11 kfps. • Ivishak — [11207' MD/10456' TVD to 11414' MD/10601' TVD...] o General Descriptions: The top of the Ivishak was marked by the beginning of a massive sandstone /chert interval with two thin 110- 115api gamma stringers encountered within the first 20' MD of the Ivishak top. After passing the two shale stringers, the remainder of the Ivishak was a combination of a medium to fine - grained sandstone with interbedded tripolitic chert throughout with following MWD background levels: gamma 12- 18api, resistivity 1- 3ohmm, porosity 16 -23pu, and bulk density 2.30- 2.45g /cc. Throughout the Ivishak, there were multiple resistivity peaks of 6 -21 ohmm that were associated with gamma peaks to 34- 52api, decrease in porosity to 6 -10pu, and an increase in density to 2.65- 3.00g /cc. • Shale: Medium to dark gray, brown, hard, occasionally soft, brittle, tuff interbedded occasionally, slightly calcareous. 1 • Sandstone: Clear to translucent, opaque to white, translucent yellow to orange, fine upper to medium upper grained, sub angular to angular, sub spherical to spherical, predominantly quartz, occasional lithic fragments, loose, calcareous in part, occasional carbonaceous material, tuff cemented in part, increasing pyrite with depth, no sign of fluorescence /cut over contaminated SOBM. • Chert (Tripolitic Chert): White to opaque, tan to pale yellow, dull gold to light brown in part, soft, calcareous in part, hydrophilic, carbonaceous material ' interbedded, scattered lithic fragments, loose sand throughout, occasional pyrite, occasional glauconite, no sign of fluorescence /cut over contaminated SOBM. o Gas Description: Drilled formation gas averaged 50 -80 units with no peaks within the formation. After entering the Ivishak, both the steam still and legacy gas extraction heavy concentrations fell off with the legacy gas extraction completely losing ethane and propane while the steam still gas extraction showed a significant decline in the heavy gas concentrations entrained within the mud. After the 11351' MD resistivity spike, both the ' legacy and steam still gas extraction showed an increase in the heavy gas concentrations. o Drilling Notes: ROPs within the Ivishak were highly variable from 20 to 80fph instantaneous ROPs observed using 115- 120rpm surface rotary and 440- 460gpm flow. WOB dropped significantly upon entering the Ivishak from 35 to 16klbs and initially held steady at the lower WOB. After getting through the upper Ivishak, WOB rapidly climbed at 11290' MD and remained elevated at 25- 35klbs for the remainder of the well. Drilling torque held steady at 10 -11 kfps with many rapid spikes to 15kfps that could have been ' induced by drill pipe buckling with the excessive WOBs throughout the Ivishak. o Formation bottom not reached — TD called. 25- Mar -2010 Continued tripping out seeing no losses while racking back stands to 3083' MD; thereafter, tripped out while laying down singles. Pulled wear ring, installed test plug and test joint. Tested BOPE, picked up 3.5" drill pipe and ran in the hole with the rest of the 5" drill pipe. 1 26- Mar -2010 Finished tripping in the hole to 9923' MD with the rest of 5" drill pipe. Circulated and conditioned mud for cement job. Sucked most of the OBM from the pits to the trucks and shipped back to the mud plant. 1 Rigged down Schlumberger MWD tools. Held PJSM for pumping cement plugs. 27- Mar -2010 Pumped Cement plugs from 9920' MD to 9600' MD (16 bbls), pulled 3 stands and full circulation. Pulled another 15 stands. At 8200' MD, pumped another balanced cement plug (24 bbls) and circulated around. Pulled one stand and displaced oil based mud with the water based mud used during surface hole drilling. 1 1‘ Brooks Range Petroleum Corporation 1 HALLI B U RTO N I Sperry Drilling Transferred 127 bbls of mud to trucks. Tripped back to the shoe and circulated and conditioned mud. ' Built more mud for volume. Tripped out of hole while laying down singles. 28- Mar -2010 Continued pulling out of hole while laying down singles. Ran in the hole to set retainer at shoe. Pumped cement below retainer. SDL released and rigged down. North Shore #3 — INSITE RUN SUMMARY [Runs in Chronological Order] ' Run 9999 — Junk — Rigging Up & Initiate Data Acquisition Run 0100 — Surface — Drill from 105' to 528' MD to allow room for Surface BHA #2. Run 0200 — Surface — Drill from 528' to 2685' MD. Run 0250 — Casing — Run 9 5/8" casing from surface to 2678' MD. Run 0251 — Junk — 4" Drill Pipe Management (Picking Up 9000' MD DP) Run 0300 — Production — Drill from 2678' to 9054' MD (Trip Out for Low Sliding ROP) ' Run 0400 — Production — New BHA w/o IB Stab above MWD - Drill from 9054' to Core Point. Core Point: 11005' MD. Run 0500 — Junk — Attempted Coring Run using CanRig WITS for Depth Control - Bit Depth was being rounded coming across & not allowing IRIS to make a mode ' switch from 'Trip In' to 'Drilling'. Therefore, drilling records, Logging, Lagged Gas, etc. were not allowed to write. - Aborted Run Early & Switched to Schlumberger for Depth Control o Had previously switched from Schlumberger to CanRig because we were 1 o informed Schlumberger would not be tracking depth — turns out they are tracking depth. Run 0600 — Coring — Core from 11005' to 11064' MD. 1 Run 0700 — Production — Drill from core point at 11064' MD to TD at 11414' MD. Run 0750 — Plug and Abandon — Pump cement plugs at 9920' MD and 8200'. 1 1 1 1 1 1 Brooks Range Petroleum Corporation 1 1 Customer: Brooks Range Report #: 1 Well: Northshore 3 Date: 03/04/2010 - 04 :00 Area: Beechey Point 04:00 Depth 154' II 1 HALlLIBURTON Location: North Slope Progress 24 hrs: 149' Sperry Drilling Rig: Nabors 16E Rig Activity: Driliing Surface Hole A Job No.: AK -AM- 0007104245 Report For: J. Keener N. Sachivichik D aily Charges $3,250.00 Total Charges: $11,200.00 ." ,. ~ .. , ask E``4' `8 1 •i : : -:.: �N .. u.. w u)l? § ""? s' k.i ' .. • ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: ROP ft/hr 0.0 262.0 506.0 195' Flow In • •m 0 SPP •si 0 Gas (units) 0 1 1 Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition De.th Tot Circ HrIMICEIM Av. Diam PWD Drillin• - Min 11.37 Av. - Max [Calcat StatedCircTime] - - -- All Circ - Min 11.37 Avg Max • Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids De.th ft in out sec/.t • •b E. cP Ib/100ft m1/30min me/1 % 249' 8.70 8.70 160 25.0 27 38 13.0 8.70 1600.00 2.6 I -> ' BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hui hes MXL-1X 12.25 0.942 1.92 105' - - -- :,. Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 70 -- - - - - -- 30 . . , Gas Breakdown H2S Data 1 Sample Line Max: Avg: I Ambient Air Pit Room Max: (Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to 1 to to to to I to to to Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip... ; F -- - Formation...; E -- - Early... I 24 hr Recap: SDL personnel complete rig up of unit. Establish WITS with Schlumberger and Canrig. Calibrate 8800 Gas Analyzer to C1 equivalent of 10.100 %. Calibrate 8900 Gas Chromatograph with low cal gas for C1 -05. Begin circulating at 19:40. Begin Drilling 12.25" surface hole at 20:53. Drill with average ROP of 328 ft/hr till 240' MD when the flow line and possum belly begin packing off with gravel ranging in size from 3mm to 50mm. Impeller to gas trap destroyed during this section. New impeller I installed. Packed off gravel worked on with an irregular pump rate ranging from 29spm- 79spm. At 241' MD drilled ahead at approximately 22 ft/hr to 254' MD. Samples becoming more sandy with depth. Pulled back to 112' MD and working on rig. i l 1 ' Logging Engineer: Danny Kane / Ryan Massey " 10000 units = 100% Gas In Air 1 1 O':•. Customer: Brooks Range Report #: 2 Well: Northshore 3 Date: 03/05/2010 -04:00 HALLIBUIRTON Area: Beechey Point 04:00 Depth 1041' Location: North Slope Progress 24 hrs: 887' Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Surface Hole Job No.: AK -AM- 0007104245 Report For: J. Keener/ N. Sachivichik Daily Charges $3,250.00 Total Charges: $15,050.00 : . ..: ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 123.0 246.0 540' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 3 5 641' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [CalcatStatedCircTime] All Circ - Min 11.37 Avg - Max M u d D a ta : Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib/100ft m1/30min mg /I % 744' 9.00 9.00 124 20.0 31 36 13.0 8.20 1700.00 4.7 BHA Run # 1 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hughes MXL -1X 12.25 0.942 1.92 105' rr 1 2 Hughes MXL-1X 12.25 0.942 5.59 105' 936' I Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) 70 5 20 5 Gas Breakdown 1 H2S Data 1 Sample Line !Max: Avg: ( Ambient Air Pit Room Max: (Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... A,: illitilWRIBVrilinirlikikilWIIMMIIMMIIIMMMIMMIIIIIIILiii;",:i7-1,, ,'M5x I 24 hr Recap: Staged pump rate to keep possum belly from packing off. Large volumes of gravel and sand come to surface when pumps are on. Attempted drill ahead at an average of 20ft/hr with no success. Pulled to 112'MD while performing top drive maintenance and cleaning flow line and possum belly. Tripped to bottom and drilling initially at 50ft/hr and increased to 100 ft/hr to maintain cuttings control. Drilled to 528'MD and pulled to surface. Broke down BHA #1 and began picking up I BHA #2 with the rerun bit. Work through tight spot at 465'MD. Make it to bottom and drill ahead while picking up BHA components. Gravel fell out of samples significantly at 692'MD and continued to drop out to current depth although 5 % -10% of sample contains approximately 5mm in length. Background gas increased to 3 -5 units. 1 .s' Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 111 Customer: Brooks Range Report #: 3 Well: Northshore 3 Date: 03/06/2010 -04:00 1 HALLIBURTON Area: Beechey Point 04:00 Depth 2685' Location: North Slope Progress 24 hrs: 1644' Sperry Drilling Rig: Nabors 16E Rig Activity: TD Surface Hole, POOH Job No.: AK -AM- 0007104245 Report For: J. Keener / N. Sachivichik 1 Daily Charges $3,250.00 Total Charges: $18,300.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 162.0 302.0 2202' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 8 33 2249' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Cale at Stated Circ Time] 2685' 27.81 420 bbls 17.60" All Circ - Min 11.37 Avg - Max Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in I out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg /I % 2671' 9.40 9.40 190 15.0 25 49 12.5 8.40 1100.00 7.9. I " -w BHA Run # I Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hughes MXL -1X 12.25 0.942 1.92 105' rr 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2580' Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl j Tuff I (current) 30 20 45 5 Gas Breakdown I H2S Data 1 Sample Line Max: Avg: I Ambient Air Pit Room Max: 'Avg: I I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I pz, 24 hr Recap: Drilled ahead from 1041' MD to 2685' MD. Rig generators were down from 08:18 to 08:30. Re- establish WITS connection with Schlumberger and Canrig. Lost suction on the pumps, replaced pump screens. Adjusted gas trap all through the day in association with gravel beds forming in possum belly. Made adjustment to new gas trap to allow for it be raised higher in possum belly. Gravel in possum belly made gas data irractic at times. At 2474' MD, pumps were staged due to gravel beds I developing in possum belly. Started seeing significant mud loss at the shakers. TD surface hole at 2685' MD at 23:40. Circulate 3 bottoms up. Background gas went from 5 units to 33 units max. Still seeing gravel coming over on shakers and samples. Began pulling out of the hole. Trouble spots at 2219' MD and 1731' MD. 1 1 `' Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 : ..:. Customer: Brooks Range Report #: 4 Well: Northshore 3 Date: 03/07/2010 -04:00 HALLIBURTON Area: Beechey Point 04:00 Depth 2685' 111 R. ' Location: North Slope Progress 24 hrs: 0' III Sperry Drilling Rig: Nabors 16E Rig Activity: Rigging Up for Casing Job No.: AK -AM- 0007104245 Report For: J. Keener / N. Sachivichik Daily Charges $3,250.00 Total Charges: $21,550.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) - - - - Flow In (gpm) 0 SPP (psi) 0 . Gas (units) - - - - Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calcat stated CircTime] 2685' 31.06 465 bbls 17.90" All Circ - Min 11.37 Avg - Max I Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft _ in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg /I % 2685' 9.10 9.10 35 12.5 14 13 13.0 9.20 1100.00 5.7 BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hughes MXL -1X 12.25 0.942 1.92 105' rr 1 2 Hughes MXL - 1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal GvI Tuff I (current) 30 20 45 5 Gas Breakdown H2S Data 1 Sample Line IMax: Avg: I Ambient Air Pit Room Max: Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to I to to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... ,,. I 24 hr Recap: Continued pulling out of hole after reaching TD for surface section. Replaced gas trap motor in possum belly. Pulled out 26 stands and tripped back to bottom for wiper trip. Encountered tight spot at 1900' MD, rotary trough. Max trip gas 14 units. Pull out of hole with no problems. Tested gas analyzer and gas chromatograph - OK. Switch over from Schlumberger WITS to Canrig WITS. Rig up for surface casing run. Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 1 I .# -."1/XIMMIIIIIMMIMAICIMMIIMIIF.:.MitesillreVMEMMEMIIMIIIIIIMITAMMIVIMMIPMt, ', .'',' , Customer: Brooks Range Report #: 5 Well: Northshore 3 Date: 03/08/2010-04:00 I HALLIBURTON Sperry Drilling Rig: Nabors 16E Area: Beechey Point 04:00 Depth Location: North Slope Progress 24 hrs: 2685' 0 ' Rig Activity: Cementing Job No.: AK Report For: J. Keener/ N. Sachivichik I ' ,, ' ' Daily Charges .4 k...■...3 $3,250.00 Total Charges: $24,800.00 ROP & Gas: Current Avg 24 hr Max Max © ft Current Pump & Flow Data: 0 - Flow In (gpm) 0 SPP (psi) I G RO as P ( ( u ft/ ni h ts r) ) ..li - Flow In (spm) 0 Gallons/stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Ca lc at Sated Circ Time] 2685 31.06 I 465 bbls 17.90" All Circ - Min 11.37 Avg - Max I .-' iMudillart: 7 j.:...' • - Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP lb/100ft m1/30min mg/1 % 2685' 9.30 9.30 45 11.0 17 10 13.0 8.40 1000.00 7.2 BHA Run # 1 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hughes MXL-1X 12.25 0.942 1.92 105' rr I : 2 Hughes MXL-1X 12.25 0.942 19.13 105' 2685' 2580' F - 15 45 1-3-VVTA-2-E-RG-TD Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) 30 20 45 5 Gas Breakdown I H2S Data 1 Sample Line 'Max: 'Avg: I Ambient Air Pit Room IMax: 'Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to I to to to III Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... I 24 hr Recap: Begin running 9 5/8 casing. Fill casing every 3 joints. Landed casing shoe at 2670' MD. Circulated and conditioned mud all the way around. Rig up cement hoses and cement head. Pumped 50 bbls mud to push 10 ppg and 420 bbls of lead cement of 10.7 followed by 45 bbls of 15.8 tail cement. Dropped top plug and kicked out with 10 bbls . 1% of water and displaced with 1864 strokes. Bumped plug with no cement returns to suface. Rigged down cement head. I Trip in hole with cement stage tool. Pumped 2380 strokes and saw returns. Picked up steam still and centrifuge 1, equipement from Deadhorse. Set up and calibrate enhanced gas equipement. Pulled gas trap from possum belly Max circulating gas was 7 units. 1 1 ll .*, ' Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air -Maiiiiiiiltr Malit 3A1MOMBIIIMOMMIMMIIMBINIMMitaWNIMULACMISIE • ' '. ' , I ' ' 1 1 Customer: Brooks Range Report #: 6 Well: Northshore 3 Date: 03/09/2010 -04:00 HALLIBURTON Area: Beechey Point 04:00 Depth 2685' Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: Nabors 16E Rig Activity: Work on BOPS Job No.: AK -AM- 0007104245 Report For: J. Keener / N. Sachivichik Daily Charges $3,250.00 Total Charges: $28,050.00 -,r, ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) _ _ _ - Flow In (gpm) 0 SPP (psi) 0 Gas (units) Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calc at Stated Circ Time] 2685' 31.06 465 bbls 17.90" All Circ - Min 11.37 Avg -_Max Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg/1 % A . 2685 9.20 9.20 50 12.5 17 17 11.8 9.30 120.00 4.7 I BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 1 Hughes MXL -1X 12.25 0.942 1.92 105' rr 1 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685 2580' 15 45 1- 3- WTA- 2- E -RG -TD I Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) 30 20 45 5 Gas Breakdown I H2S Data I Sample Line !Max: Avg: ( Ambient Air Pit Room Max: Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I 24 hr Recap: Pump cement to surface, pump 5 bbls of water to clean out drill pipe. Lay down cement BHA. Wait on cement. Pick up 10' land joint with collar. Make up to hanger. Fill with inhibited water, lay down stack. Rig down diverter. No gas data collected. 1 1 1 Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air v, � 1 1 ' • ; ,. � - : � u;,. ;0. ` a �: " N: • R Customer: Brooks Range Report #: 7 fi Well: Northshore 3 Date: 03/10/2010-04:00 :,"' HALLlBURTON Area: Beechey Point 04:00 Depth 2685' Location: North Slope Progress 24 hrs: 0' II Sperry Drilling Rig: Nabors 16E Rig Activity: Nipple up BOP Job No.: AK -AM- 0007104245 Report For: J. Keener/ N. Sachivichik Daily Charges $3,250.00 Total Charges: $31,300.00 ROP & Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) _ _ _ - Flow In (gpm) 0 SPP (psi) 0 Gas (units) Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calc at Stated Circ Time] 2685' 31.06 465 bbls 17.90" All Circ - Min 11.37 Avg - Max I P• i Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in I out (sec/qt) (ppb Eq) cP Ib /100ft ml /30min mg /I % 2685' 9.20 9.20 55 12.5 20 12 11.2 8.90 750.00 6.2 Via. .. BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 1- 3- WTA- 2- E -RG -TD Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I ii z° (current) 30 20 45 5 I Gas Breakdown H2S Data 1 Sample Line Max: (Avg: I Ambient Air Pit Room Max: Avg: I Gas (units) Chromatograph (ppm) I Measured Depth to to I to to to to I to to to Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... rn. I 24 hr Recap: Nipple up BOP's, measure and cut riser. Cleaned Pits. Change out swab and liner in mud pump #2. Continued working on BOP's. 1 1 " Logging Engineer: Danny Kane / Ryan Massey " 10000 units = 100% Gas In Air ■ • I. 1 • I ,!, , :1 . 1111141:1"r illImilUclilEMENIMINEVIIIIMEMINEMENSIIIIMINSIgf If A:AMIlkatiallit •,:„. Customer: Brooks Range Report #: 8 Well: Northshore 3 Date: 03/11/2010-04:00 !,*i ii HALLIBURTON Area: Beechey Point 04:00 Depth 2685' Location: North Slope Progress 24 hrs: 0' II ..; Sperry Drilling Rig: Nabors 16E Rig Activity: Making Up BHA Job No.: AK-AM-0007104245 Report For: J. Keener/ N. Sachivichik Daily Charges $3,250.00 Total Charges: $34,550.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) - Flow In (gpm) 0 SPP (psi) 0 Gas (units) - Flow In (spm) 0 Gallons/stroke 4.1860 Hole Condition Depth tl Circ Hr Ann Enlrgmt Avg Diam pwD Drilling - Min 11.37 Avg - Max [calc at stated circ Time] 2685' 31.06 465 bbls 17.90" All Circ - Min 11.37 Avg - Max 1 , 'W: * ' "** , , , ‘, *4 ''-'" **.,,, , ; 7 - '4; 4,1• • Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids De •th ft in out (setht • ilb E. cP Ib/100ft m1/30min m./1 % I 2685' 9.20 9.20 56 12.5 20 13 11.2 8.90 750.00 6.2 BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL-1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 1-3-WTA-2-E-RG-TD I Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 30 I 20 45 Gas Breakdown 5 : 1 H2S Data 1 Sample Line IMax: lAvg: 1 Ambient Air Pit Room IMax: lAvg: 1 I Measured Depth Gas (units) Chromatograph (ppm) to to I to to to to I to to to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... I 24 hr Recap: Completed nippling up, tested BOP, and laid down test joint. Began picking up drill pipe. Begin making up BHA. 1 1: 1 Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air , ,, ., 4., ' . , : 1 1 Customer: Brooks Range R #: 9 Well: Northshore 3 Date: 03/12/2010 -04:00 II HALLIBURTON Area: Beechey Point 04:00 Depth 2705' Location: North Slope Progress 24 hrs: 20' Sperry Drilling Rig: Nabors 16E Rig Activity: Cleaning Pits Job No.: AK -AM- 0007104245 Report For: J. Keener / N. Sachivichik Daily Charges $3,250.00 Total Charges: $37,800.00 I �, �$ ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) - 100' 123' 2676' Flow In (gpm) 0 I SPP (psi) 0 Gas (units) 12 18 I 2697' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [CalcatStatedCircTime] 2705' All Circ - Min 11.37 Avg - Max ii , Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg/1 % 2704' 8.80 8.80 37 12.0 15 10 12.2 8.50 750.00 5.7 ----, BHA Run # ( Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 1- 3- WTA- 2- E -RG -TD 1 3 Hycalog DTX619-D6 8.5 0.902 0.34 2685' p Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 40 20 40 Gas Breakdown H2S Data 1 Sample Line (Max: (Avg: ( Ambient Air Pit Room IMax: (Avg: Gas (units) Chromatograph (ppm) Measured Depth to to I i to 1' to to II 1 to to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I ';1124 hr Recap: Finished picking up and built BHA. Tripped in hole to 1600' MD and circulated. Performed casing test - OK. Ran in hole to 2650' MD. Started drilling float shoe track and 20' of new formation. Max gas was 18 units. Off loaded 80bbls of spud mud, began cleaning out pits, cut and slip drill line. Gas trap placed in position. Gas Analyzer and Chromatograph calibrated and ii checked. I 14 1 ' Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 : 1 1 1 Customer: Brooks Range Report #: 10 Well: Northshore 3 Date: 03/13/2010 -04:00 HALLIBURTON Area: Beechey Point 04:00 Depth 4065' I Location: North Slope Progress 24 hrs: 1360' i. Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Ahead Job No.: AK -AM- 0007104245 Report For: J. Keener / N. Sachivichik Daily Charges $3,250.00 Total Charges: $41,050.00 r3 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Row Data: I ROP ft/hr 157.0 167' 255 3595' Flow In • •m 466 SPP •si 1710 4. Gas (units) 72 51' 111 3558' Flow In (spm) 116 Gallons /stroke 4.1860 Hole Condition Death Tot Circ Hr MEM Av. Diam pwD Drillin• - Min 11.37 Av. - Max ICalcatStatedCirmTimel 4065' 19.14 25 bbls 8.70" All Circ Min 11.37 Avg - Max Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Death ft in out (sec/qt) • •b E• cP Ib /100ft m1/30min m• /I I 2685' 9.20 9.20 50 12.5 17 17 11.8 9.30 120.00 4.7 BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 12.25 0.942 19.13 105' 2685' 2580' 15' 45 1- 3- WTA- 2- E -RG -TD 3 Hycalo . DTX619 - D6 8.5 0.9 02 0.34 2685' - - -- 1 4� Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 40 20 - -- 40 - - - -- 1 Gas Breakdown H2S Data 1 Sample Line Max: Avg: 1 Ambient Air Pit Room Max: Avg: I I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to I to to to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I 24 hr Recap: ar ound . Displace well with 1.34ppg OB while taking WBM through drag chain to trucks on site. Circulate and condition mud to 9.2ppg Conduct FIT to 1 EMW. Beg an drilling at 2705' MD. After one stand drilled, possum belly packed out with PDC cuttings. Cuttings 1 - 2" thin PDC Clay /Shale. Background gas quickly climbed to 40 -50 units. While making connection at 3625' MD, shaker screen packed off and lost mud into the drag chain. Took 1 hour to clean shakers and possum belly. Resumed I drilling. At 3724' MD, experienced higher than normal rotary torque. Subsequently possum belly and shakers were overloaded with PDC cuttings. Unable to obtain gas data from 3711' to 3868'. After Shaker Hands cleaned possum belly returned to normal flow. Background units increased to 80 -100 units. Chromatographs is detecting Methane only. 1 I Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 I — . . , .eriffIVIIIPMILV ,, ,,—;',, Customer: Brooks Range Report #: 11 , Well: Northshore 3 Date: 03/14/2010-04:00 Area: Beechey Point 04:00 Depth 6228' ii HALLIBURTON Location: North Slope Progress 24 hrs: 2163' 111 Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Ahead Job No.: AK-AM-0007104245 Report For: J. Keener / N. Sachivichik I Daily Charges $3,330.00 Total Charges: $44,540.00 il ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP ft/hr 97.0 156 195 4685' Flow In • •rn 458 SPP isi 2016 Gas (units) 45 117 631 4517' Flow In (spm) 106 Gallons/stroke 4.1860 — Hole Condition De •th Tot Circ Hr IMO= Av • Diam pwc Drilline - Min 11.37 Ave - Max ICaic at Stated Circ Timel 4065' 19.14 25 bbls 8.70" All Circ - Min 11.37 Avg - Max I : or -f: -, . •• • • ,•!: Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Death ft in out (sec/.t) • et) E. cP lb/100ft m1/30min m./1 % 5727' 9.35 9.35 100 I '*-----'—'"r"'"---'''--'—'---------' 24 12 2.0 - - 6.6 , BHA Run # Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL-1X 12.25 0.942 19.13 105' 2685' 2580' 15' 45 1-3-WTA-2-E-RG-TD 3 Hycalog DTX619-D6 8.5 0.902 26.55 2685' .,. Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gyl Tuff I ..., (current) 10 25 60 5 Gas Breakdown H2S Data 1 Sample Line !Max: Avg: I Ambient Air Pit Room (Max: IAvg: I Measured Depth Gas (units) Chromatograph (ppm) to to I to to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... ' ::,t , - - '*,.'1, ''%.7.1116"11~1"1111M111111111111MMIIIKTIMMIIMISIIIMEMMIIIIMMI1110171311111111M" ;,...... , - I 24 hr Recap: Drilled from 4065' MD to 6228' MD. Drilled through several coal seams averaging 10-12' in thickness. Max gas through coal seams was 631 units. Pumped pill to control variable 5-15 bph losses. Continuing to flood the shakers with cutting occasionally when rotating after a slide. Switched to one pump while drag chain was worked on. No spikes in torque and stand '.. pipe pressure indicating a clean hole. Background gas has varied throughout the section 50 units to 250 units. Gas peaks I :.; maxed out at approximately 2 times background. The steam still hydrocarbon analysis picked up trace amounts C2-05 , of less than 60 ppm. Drilled in the West Sak at approximately 5755' TVD and currently drilling ahead. 1 =.". 1 1 , 1, -... Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 ' ,.: . 'n_ .: , ''' ' ''"Xliiii6. "g ,:%. 1 1 I p Customer: Brooks Range Report #: 12 Well: Northshore 3 Date: 03/15/2010 -04:00 HALLIBURTON Area: Beechey Point 04:00 Depth 8124' i Location: North Slope Progress 24 hrs: 1896' 1 Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Ahead Job No.: AK -AM- 0007104245 Report For: L. Myers / N. Sachivichik Daily Charges $3,330.00 Total Charges: $47,870.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 50.0 163' 233 6732' Flow In (gpm) 505 I SPP (psi) 2356 Gas (units) 265 145 784 7920' Flow In (spm) 124 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calc atStatedCircTime] 4065' 19.14 25 bbls 8.70" All Circ - Min 11.37 Avg - Max 1 • M ud Data: D ( pp g ) V iscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in L out (sec,/qt) (ppb Eq) cP Ib /100ft m1/30min mg /I % 7366' 9.40 9.40 89 - 29 14 2.0 - 6.7 BHA Run # I Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685' 2580' 15' 45 1- 3- WTA- 2- E -RG -TD 1 3 Hycalog DTX619 -D6 8.5 0.902 41.06 2685' A , • I Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 10 25 60 5 I Gas Breakdown H2S Data 1 Sample Line (Max: Avg: I Ambient Air Pit Room Max: Avg: I Gas (units) Chromatograph (ppm) Measured Depth 7892' to 7931' 784 380 83735 1662 329 44 44 GP to I to to to to 1 to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I 24 hr Recap: Drilled from 6228' MD to 8124' MD. Drilled out of the West Sak and into the Colville. Added mica and baracarb to mitigate 5 bbl/hr losses. Steam still has been picking up C3 -05 throughout section. Heavies dropped out through Colville. Connection gas at 7933' MD of 1972 units and 8028' MD with 5500 units of gas. Max drilling gas was 945 units with some heavies showing up on chromatograph. Approaching Kuparuk and drilling ahead. 1 1 ky Logg Eng Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 1 n" ., Vie. Customer: Brooks Range Report #: 13 Well: Northshore 3 Date: 03/16/2010 -03:00 HALLIBURTON Area: Beechey Point 03:00 Depth 9054' 1 Location: North Slope Progress 24 hrs: 930' Sperry Drilling Rig: Nabors 16E Rig Activity: Pulling Out of Hole Job No.: AK -AM- 0007104245 Report For: L. Myers / N. Sachivichik Daily Charges $3,330.00 Total Charges: $51,950.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 115' 198 8178' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 231 477 8168' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition l Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calc at Stated Circ Time] 4065' 19.14 25 bbls 8.70" All Circ - Min 11.37 Avg - Max 1 (4 1 M ud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg /I 8900' 10.40 10.40 95 - 26 22 2.0 - - 6.6 rt BHA Run # 31 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 1- 3- WTA- 2- E -RG -TD 1 3 Hycalog DTX619 -D6 8.5 0.902 54.33 2685' 9054' 6369' 8 71 ' ry Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst i Coal Gvl Tuff (current) 20 80 Gas Breakdown H2S Data 1 Sample Line Max: 'Avg: I Ambient Air Pit Room Max: Avg: I I Gas (units) Chromatograph (ppm) Measured Depth 8123' to 8123' 6045 175 647844 34327 11817 3939 790 CG 8219' to 8219' 4488 165 484898 17351 5681 1949 227 CG I 8315' to 8315' 3990 120 407936 11024 3312 1114 33 CG to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... . .. i•~ •4- : ' e ' , I 24 hr Recap: Drilled from 8124' MD to 9054' MD. Drilled through Kaparuk D approximately at 8053' MD/7844' TVD and into the Kuparuk C at 8074' MD/7865' TVD. Decision was made to not weight up prior to HRZ. Connection gas of 6045 units over 175 units background were seen at 8123' MD, 4488 units over 165 units background at connection 8219' MD, 3990 units over 120 units background at connection 8315' MD, and 132 units over 85 units background at 8410' MD. Weighted mud to 10.3 at 8500' MD and I no connection gas has been recorded since. Average ROP decreased from 175 ft/hr while rotating to 32 ft/hr while sliding, noticable slow down in Miluveach. Had trouble sliding due to gage stabilizer in BHA preventing weight being applied to bit. Decision made to pull out of hole to change BHA confirguration, bit, mud motor and test BOPs. Background gas dropped from 320 units to 60 units. 1 * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. 1 Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 1 I Customer: Brooks Range Report #: 14 Well: Northshore 3 Date: 03/17/2010 -03:00 HALLIBURTON Area: Beechey Point 03:00 Depth 9054' Location: North Slope Progress 24 hrs: 0' • £`. Sperry Drilling Rig: Nabors 16E Rig Activity: Making Up BHA Job No.: AK -AM- 0007104245 Report For: L. Myers / N. Sachivichik i ' '1, Daily Charges $3,705.00 Total Charges: $55,655.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 0' 0 0' Flow In (gpm) 0 SPP (psi) 0 =1 Gas (units) 0 0 0 0' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Galt at Stated Circ Timel 9054' 40 bbls 8.68" I All Circ - Min 11.37 Avg - Max Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg /I % I 9054' 10.40 10.40 99 - 31 18 2.0 13.0 BHA Run # 31 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hughes MXL -1X 12.25 0.942 19.13 105' 2685' 2580' 15 45 1- 3- WTA- 2- E -RG -TD 1 3 Hycalog DTX619 -D6 8.5 0.902 54.33 2685' 9054' 6369' 8 71 Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 20 80 Gas Breakdown t 1 H2S Data 1 Sample Line Max: Avg: I Ambient Air Pit Room !Max: 'Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to I v to to to to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I 24 Recap: Continued tripping out of the hole with no problems. Lay down BHA. Tested Bops and are making up BHA at time of report. Plan forward: Drill to coring point set approximately 20' above Sag River Formation. No gas data to report. I V I 0 report due to problems associated with changing the clock in the Sperry Database while *The 04:00 report adjusted to the t3 • p p ry drilling. 1 Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air I 1 1 Customer: Brooks Range Report #: 15 Well: Northshore 3 Date: 03/18/2010 -03:00 ' HALLIBURTON Area: Beechey Point 03:00 Depth 9054 Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: Nabors 16E Rig Activity: Running in Hole Job No.: AK -AM- 0007104245 Report For: L. Myers / D. Breedon I Daily Charges $3,705.00 Total Charges: $59,360.00 .. _ rt xs.. ,'ice.. .:. , . g , ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP ft/hr 0.0 0' 0 0' Flow In ..m 0 SPP •si 0 Gas (units) 0 0 0 0' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition De.th Tot Circ Hr CEO= Av. Diam PWD Drillin. - Min 11.37 Av. Max [calc at Stated Circ Time] 9054' 40 bbls 8.68" All Circ - Min 11.37 Avg Max y (ppg) Viscosity Data: Density MBT PV YP API Filt pH Chlorides Cor Solids y Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft m1/30min mg/1 % pi, 9054' 10.40 10.40 99 - 31 18 2.0 - - 13.0 BHA Run # 61 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 Hycalog DTX619 -D6 8.5 0.902 54.33 2685' 9054' 6369' 8 71 1 3rrl Hycalog DTX619 -D6 8.5 0.778 9054' a Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff 7 I (current) 20 80 Gas Breakdown I H2S Data I Sample Line Max: Avg: 1 Ambient Air Pit Room (Max: Avg: 1 I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... : .„ , f I 24 hr Recap: Tripped into the hole to 700' MD. Attempted to shallow pulse tools however higher than average stand pipe pressure was seen. Tripped to surface to reconfigure BHA. Gravel was found in the MWD tool /bit. Made up BHA and ran into hole to approximately 700' MD and higher than normal average stand pipe pressure was seen again. Decision made to pull out of the I hole and replace the LWD tool. Made up BHA and ran into hole, shallow pulse tested - OK. Running in the hole at time of report. Calibrated and tested Gas Analyzer and Gas Chromatograph in preparation for drilling. I ' The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while P J P drilling. LI Logging Engineer: Danny Kane / Ryan Massey ' 10000 units = 100% Gas In Air 1 1 I 14 , ,--, ,,,' '.., ',777. _:-..,...,-, , .:,:*:4•Atommoussuie , &,,t , - ... Customer: Brooks Range Report #: 16 Well: Northshore 3 Date: 03/19/2010-03:00 Area: Beechey Point 03:00 Depth 9860' I : HALLIBURTON Location: North Slope Progress 24 hrs: 806' . Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Ahead Job No.: AK-AM-0007104245 Report For: L. Myers / D. Breedon Daily Charges $3,705.00 Total Charges: $63,065.00 ; .,.. ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP ft/hr 64.0 72' 143 9710' Flow In • cm 436 SPP isi 2850 Gas (units) 81 0 85 9321' Flow In (spm) 100 Gallons/stroke 4.1860 Hole Condition De .th Tot Circ Hr CIE= Av. Diam pwc Drillinii - Min 11.37 Ave - Max I [Cale at Stated Circ Time] 9054' 30 bbls 8.59" All Circ - Min 11.37 Avg - Max :. : Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids . Death ft in out (sec/. t • . b Es cP Ib/100ft m1/30min m./1 9461' 10.55 10.55 120 I — ' - . 43 19 2.2 - - 12.8 BHA Run # 6 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 2 H calo. DTX619-D6 8.5 0.902 54.33 2685' 9054' 6369' 8 71 3rr1 Hycalog DTX619-D6 8.5 0.778 9054' .."Mbio. , Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) 20 70 10 . Gas Breakdown H2S Data 1 Sample Line 'Max: Avg: 1 Ambient Air Pit Room Max: 1 IAvg: 1 I Measured Depth Gas (units) Chromatograph (ppm) to — to I - to to — to to I _ to to ' to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... I 24 hr Recap: Continued tripping in the hole. On bottom at 07:57, 9054' MD. Circulated the last stand down. Trip gas came to surface at 2030 strokes with 284 units. Slide and rotate ahead. At 9338 MD possum belly began to fill with cuttings, stopped pumps to clean. Sliding at 40-45 ft/hr, Rotating at 95-100 ft/hr. Background gas ranged from 40 units to 70 units with max gas being 85 units. Losses are at 4-8 bbls/hr. C1-C3 showing up Chromatograph whereas C1-05 appears via steam still I process. Drilling in the Kingak at the time of report. cli. 111 * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. 1 Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air I 45zz„, ',... ‘ 1 1 ..: ; . . ,.,. x " y . Customer: Brooks Range Report #: 17 ,',,,:,, Well: Northshore 3 Date: 03/20/2010 -03:00 HALLIBURTON Area: Beechey Point 03:00 Depth 11002' ' Location: North Slope Progress 24 hrs: 9860' Sperry Drilling Rig: Nabors 16E Rig Activity: Drilling Ahead Job No.: AK - 0007104245 Report For: L. Myers / D. Breedon Daily Charges $3,705.00 Total Charges: $66, 1 770.00 . , , ROP & Gas: Current Avg 24 hr Max Max © ft Current Pump & Flow Data: I ROP ft/hr 0.0 90' 160 10092' Flow In • •m 430 SPP •si 2522 Gas (units) 37 131 220 10879' Flow In (spm) 103 Gallons /stroke 4.1860 Hole Condition Death Tot Circ Hr M3Eral Av. Diam PWD Drilling - Min 11.37 Av. - Max [Calc at Stated Circ Time] 11002' 50 bbls 8.72" All Circ Min 11.37 Avg - Max I Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Death ft in out sec/•t • .b E. cP Ib /100ft m1/30min m. /I 10766' 10.50 10.50 91 43 13 2.0 a 11.9 ' BHA Run # 6 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition H calo• DTX619 -D6 8.5 0.902 54.33 2685' 9054' 6369' 8 71 1 3r1 Hycalog DTX619 -D6 8.5 0.778 30.10 9054' 1948' -- Lathology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) - -- 20 -- 80 1 - - - -- Gas Breakdown H2S Data 1 Sample Line 'Max: Avg: 1 Ambient Air Pit Room (Max: lAvg: 1 I Gas (units) Chromatograph (ppm) Measured Depth to to I 111 to to to to to to to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- Trip... ; F-- - Formation... ; E -- - Early... v pppp. I 24 hr Recap: Drilled from 9860' MD to 11002' MD through the Kingak Formation. Popped off pump valve at 10242' MD, restricted rate of penetration till further notice. Background gas was 30 units to 40 units until 9987' MD in which the background gas increased to 150 through the current depth. 14 units of connection gas was seen at the 10886' MD connection but not present at any other I units to 180 unitsconnection. In looking for the coring point, drilled to 10965' MD and circulated bottoms up. Drilled ahead to 10982' MD and circulated bottoms up. Drilled ahead to 11002' MD and currently waiting for bottoms before coring point is officially determined. Rotated at approx 80 ft/hr and slid at 30 ft/hr. Max gas was drilling gas of 220 units. report due to problems associated with changing the clock in the Sperry 'The 04:00 report adjusted to the 03:00 p p 9 9 P IY Database while drilling. 1 Lo gging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 1 Iw . $ I HALLIBURTON Customer: Brooks Range Report #: 18 Area: Beechey Point Well: Northshore 3 0 3 : 0 0 D D e a p t t e h : 03/21/2010-03:00 11002' Location: North Slope Progress 24 hrs: 11005' '...: Sperry Drilling Rig: Nabors 16E Rig Activity: Running In Hole Job No.: AK-AM-0007104245 Report For: L. Myers / D Breedon Daily Charges $3,705.00 Total Charges: $70,475.00 I , 4,1. -:...:„.„,„ -!;;;;;- - Mlir ROP & ,., Ktit' tk G as: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 72' 95 11005 Flow In (gpm) 0 I SPP (psi) 0 , Gas (units) 0 91 171 11002' Flow In (spm) 0 Gallons/stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam pwc Drilling - Min 11.37 Avg - Max I [Calc at Stated Circ Time] 11005' 50 bbls 8.72" All Circ - Min 11.37 Avg - Max Mud Data: Density (ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids h Depth ft in out (sec/gt) (ppb Eq) cP lb/100ft m1/30min mq/I % I 11005' 10.70 10.70 106 48 19 2.0 - - 12.7 BHA Run # 61 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 3rr1 Hycalog DTX619-D6 8.5 0.778 30.10 9054' 11005' 1948' 13 66 I 3rr1 Hycalog DTX619-D6 8.5 0.530 11005' I Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gyl Tuff I (current) 20 80 Gas Breakdown I H2S Data 1 Sample Line 'Max: Avg: 1 Ambient Air Pit Room 'Max: 1Avg: I I Gas (units) Chromatograph (ppm) Measured Depth 1 to _ to I to to - to to - I to to I to I 1 ,., Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; ,.'• POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip... ; F-- - Formation...; E-- - Early... _ _____ _ ________ -',.7.%`.1,?....„,-: I 24 hr Recap: Drilled from 11002' MD to 11005' MD into the Sag River Formation. Circulated bottoms up and decided to prep to pull out of the hole for the coring run. Pumped dry job and began pulling out of the hole. Pulled out of the hole with no problems, lost ,.., 16 bbls on trip out. Broke and layed down BHA. Worked on making up Coring BHA for approx 6 hours. Began running in the hole. Running in the hole at time of report. * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while ' 1 drilling. I :,.. #.„ Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air :. I - , ' * ,..... * "' 711§SakzAtikii ''''.!gli . 1E01110Miniikki.'"'N'' :' ' 7'. ' '' liSC:"111111 : ft,..111MNINIININIIIE V* 1 1 ',, ''A,: r.�:' Customer: Brooks Range Report #: 19 Well: Northshore 3 Date: 03/22/2010 -03:00 ` HALLIBURTON Area: Beechey Point 03:00 Depth 11064' ' Location: North Slope Progress 24 hrs: 59' Sperry Drilling Rig: Nabors 16E Rig Activity: Pulling Out of Hole i l Job No.: AK-AM-0007104245 R For: L. Myers/ D. Breedon r .,..,,.... ,..„, ..,...,.,,..,..,,,.. Daily Charges $3,705.0 Total Charges: $74,180.00 „....,„..., f. ROP & G as: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP ( ft/hr) 0.0 15' 20' 11044' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 85 194 11035' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max • [Calc at Stated Circ Time] 11005' 50 bbls 8.72” _ All Circ - Min 11.37 Avg - Max 1 • Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Depth ft in out (sec/gt) (ppb Eq) cP lb /100ft m1/30min mg /I % ' 11065' 10.70 10.70 175 - 40 10 2.0 - - 13.0 BHA Run # 7 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 3rr1 Hycalog DTX619 -D6 8.5 0.778 30.10 9054' 11005' 1948' 13 66 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 I Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) 20 . 80 Gas Breakdown H2S Data 1 Sample Line !Max: Avg: 1 Ambient Air Pit Room 'Max: Avg: I Gas (units) Chromatograph (ppm) Measured Depth 11020' to 11055' 194 59 5269 567 585 436 264 GP to to to to to to to to Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- Trip...; F-- - Formation...; E -- - Early... I 24 Continued running in the hole to bottom. Lost s 2 4 hr Recap: Drilled from 11005' MD to 11064' MD into the Sag River Formation. C '''' approximately 16 bbls. Began coring run at 11005 MD. Drilled at an average of 7 ft/hr with a flow in rate of 154 gpm. Drilling break ocurred at 11018' MD. Rate of penetration increased to a steady 20 ft/hr for the duration of coring run. Increased flow in to 194 gpm to decrease bottoms up time. Waited on bottoms up for gas and cuttings data. Cuttings came up pulverized and are not representative of lithology cored. No sand stone cuttings recovered at surface, only loose grains among large amounts of Baracarb. Low RPM and flow rate in the deviated hole did not allow for sufficient hole cleaning. Steam Still recovered C1 -05 despite 10.7 ppg OBM. Pumps were staged while circulating up peak gas disrupting the gas peak. Prepped and pumped pill and began pulling out of hole. Pulling out of the hole at time of report. * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. I Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air 1 Customer: Brooks Range Report #: 20 Well: Northshore 3 Date: 03/23/2010 -03:00 HALLlBURTON Area: Beechey Point 03:00 Depth 11064' ' _ Location: North Slope Progress 24 hrs: 0' 12, Sperry Drilling Rig: Nabors 16E Rig Activity: Tripping In Hole Job No.: AK -AM- 0007104245 Report For: L. Myers / D. Breedon I Daily Charges $3,705.00 Total Charges: $77,885.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ' ROP (ft/hr) 0.0 0' 0 0' Flow In (gpm) 423 SPP (psi) 2274 Gas (units) 0 0 0 0' Flow In (spm) 106 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min 11.37 Avg - Max [Calc at Stated Circ Time] 11005' 50 bbls 8.72" All Circ - Min 11.37 Avg - Max I Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Depth ft in 10.75 11065' 10. 10.75 162 40 10 2.0 - - 12.0 , BHA Run # 71 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 5rr3 Hycalog PDC MSX 8.5 0.530 11005' I Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 20 35 45 Gas Breakdown I H2S Data 1 Sample Line IMax: lAvg: 1 Ambient Air Pit Room IMax: lAvg: 1 I Gas (units) Chromatograph (ppm) Measured Depth to to I to to to to I to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation... ; E -- - Early... I 24 hr Recap: Continued pulling out of the hole with no problems. Well bore appears to be in good shape. Layed down coring tools. Cut the core barrel into 3' lengths for processing. Picked up and built drilling BHA. Tripped in hole, shallow pulsed test - OK. Stopped to fill drill pipe and occasionally had to wash through the cuttings bed from coring the Sak River Formation. Appeared to have encountered cuttings bed at 9090' MD. We may have pushed the pushed the cuttings downhold until they built up thick 1 enough to slow down the BHA on its way downhole. Washing down to bottom at time of report. * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. 1 4 L ogg i ng • Eng Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air {�} 1 ,, . , 1 1 I Customer: Brooks Range Report #: Well: Northshore 3 Date: 03/24/2010-03:00 / HALLIBURTO hi Area: Beechey Point 03:00 Depth 11141' Location: North Slope Progress 24 hrs: 77' ° Sperry Drilling Rig: Nabors 16E Rig Activity: MWD Pressure Run Job No.: AK Report For: L. Myers / D Breedon I Daily Charges $3,705.00 Total Charges: $81,590.00 ' ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 25' 60 11129' Flow In (gpm) 517 SPP (psi) 2942 Gas (units) 0 45 99 11132' Flow In (spm) 123 Gallons/stroke 4.1860 Hole Condition De .th Tot Circ Hr Ann Enlr. mt Av. Diam pwri Drilling - Min 11.37 Avg I [Cale at Stated Circ Time] 11141' 53 bbls 8.73" All Circ - Min 11.37 Avg , Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids .*!'. s Depth ft in out (sec/qt) (ppb Eq) cP lb/100ft m1/30min mg/1 % I 11105' 10.80 10.80 99 41 14 2.0 - - 12.4 BHA Run # 8 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 I 5rr3 Hycalo. PDC MSX 8.5 0.530 6.64 11005' Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I I (current) 10 80 10 Gas Breakdown H2S Data 1 Sample Line 'Max: 'Avg: 1 Ambient Air Pit Room 'Max: 'Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to to - to I ''': to to _ to to _ I ' Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... §-, (4 I 24 hr Recap: Continued to wash down to bottom. Attempted to run in hole on elevators at 10070' MD, stacked Weight at 10133' MD and continued to wash and ream to bottom. Washed and ream through cored section to 11065' MD and began rotary drilling. Trip gas was circulated up on the way to bottom, max trip gas was 27 units. Drilled at 23 ft/hr until 11085' MD where ROP backed off to I 12 fUhr. ROP increased to 32 ft/hr at 11112' MD. Rota tor•ue increased to 10.5 klbs while drilline. Max 'as drillin. •as was 99 units. Currently running MWD pressure sampling program. Had further discussions on slow trip in hole; decided we encountered coring cuttings in the early part of dogleg due to low RPM and I : low flow rate with the coring BHA which were unable to remove cuttings in hole. Once through the cuttings bed that was .,„. ..... subsequently circulated out of hole. The rigid BHA along with 4 gage stabilizers slowed the trip in through dogleg and forced to wash and ream to bottom. I * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while . . dnlling. I Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air ' - ... '11111111inlairSIMMILLI', ' .IMINNI.F.1.111111M • '''.. V:. . ' '' 1 1 I VIIIIIIMM/LMNIIIIIIIIIIIM/Mialitn II I I I I 11 IW , , : ,„-. ....:krY * , Customer: Brooks Range Report #: 22 Well: Northshore 3 Date: 03/25/2010-03:00 i HALLIBURTON Area: Beechey Point 03:00 Depth 11414' Location: North Slope Progress 24 hrs: 273' 111 Sperry Drilling Rig: Nabors 16E Rig Activity: Laying Down Singles Job No.: AK-AM-0007104245 Report For: J. Keener / D Breedon Daily Charges $3,705.00 Total Charges: $85,295.00 till ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP ft/hr 0.0 29' 71 11343' Flow In • .m 0 SPP .si 0 Gas (units) 0 48 209 11209' Flow In (spm) 0 Gallons/stroke 4.1860 Hole Condition De •th Tot Circ Hr IMMEES Av • Diam pwr) Drillin. - Min 11.37 Av• - Max [caic at Stated Circ Time] 11414' 65 bbls 8.77" All Circ - Min 11.37 Avg - Max ii i Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Death ft in out (sec/•t • •b E. cP lb/100ft ml/30min m•/1 % I 11414' 10.80 10.80 98 49 16 2.0 - - 12.6 BHA Run # 8 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 5rr3 Hycalog PDC MSX 8.5 0.530 6.64 11005' 11414' 409' 28 113 I 17:. ' .1111PWRIMMENIMMINI . i Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff • (current) 10 80 10 111 Gas Breakdown H2S Data I Sample Line !Max: 'Avg: I Ambient Air Pit Room 'Max: Avg: I Measured Depth Gas (units) Chromatograph (ppm) to - to , 1 I '" to to - to to III to to to _ I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... Ill: -l..MININIVAIMilia , I .. 24 hr Recap: Completed MWD down hole pressure testing. Rotary drilled from 11141' MD to 11414' MD i . Started drilling at 25 ft/hr . and ncreased to 41 ft/hr until hard stringer was encountered at 11282' MD. Background gas ranging from 40 units to 70 units. Continue drilling at 20 ft/hr until TD was called at 11414' MD. Pumped dry job and began pulling out of hole. Currently laying down singles on the way out of hole. I i- „,,:0 1 I ” The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. Logging Engineer Danny Kane / Ryan Massey " 10000 units = 100% Gas In Air I ' ',. A., _ ', ' ' ''''' 'link 'WSW* ' ' 1 1 Customer: Brooks Range Report #: 23 Well: Northshore 3 Date: 03/26/2010 -03:00 HALLIBURTON Area: Beechey Point 03:00 Depth 11414' Location: North Slope Progress 24 hrs: 0' Ill Sperry Drilling Rig: Nabors 16E Rig Activity: Running in Hole to P/A Well Job No.: AK -AM- 0007104245 Report For: J. Keener / D. Breedon I Daily Charges $4,500.00 Total Charges: $90,963.65 ROP & Gas: Current Avg 24 hr Max Max © ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 0' 0 0' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 48 0 0' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam pwD Drilling - Min - Avg - Max [CalcatStatedCircTime] 11414' 65 bbls 8.77" All Circ - Min - Avg - Max Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP Ib /100ft ml /30min mg /I I 11414' 10.80 10.80 160 - 48 16 2.0 - - 12.6 BHA Run # 8 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 I 5rr3 Hycalog PDC MSX 8.5 0.530 6.64 11005' 11414' 409' 28 113 7 . Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 10 80 10 Gas Breakdown H2S Data 1 Sample Line Max: IAvg: 1 Ambient Air Pit Room 'Max: (Avg: I Gas (units) Chromatograph (ppm) Measured Depth to to I to s to 4. to to I *{ to to to 1 Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... I , 24 hr Recap: Completed pulling out of hole while laying down singles. Layed down BHA and downloaded tools. Pulled wear ring and installed test plug. Tested join in preperation for testing BOPs. Tested BOPs. Picked up 460' of 3.5" drill pipe and the rest of the 5" drill pipe. Ran a post run accuracy check for both primary chromatograph and steam still chromatograph. Both tested within 1.5% for C1 -05. Boxed up sample inventory and prepping to ship to Anchorage. No gas data for the past 24 hours. * Danny Kane to town and Roman Krochuk to rig location. * Sample Boxes and Envelopes added to Total Charges. I * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. Logging Engineer: Danny Kane / Ryan Massey * 10000 units = 100% Gas In Air y 1 1 Customer: Brooks Range Report #: 24 Well: Northshore 3 Date: 03/27/2010 -03:00 HALLIBURTON Area: Beechey Point 03:00 Depth 11414' 1 Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: Nabors 16E Rig Activity: Running cement job Job No.: AK -AM- 0007104245 Report For: J. Keener/ D. Breedon Daily Charges $3,250.00 Total Charges: $94,213.65 RO P & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 0' 0 0' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 48 0 0' Flow In (spm) 0 Gallons /stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam PWD Drilling - Min - Avg - Max � "' [Calc at Stated Circ Time] 11414' 65 bbls 8.77" All Circ - Min - Avg - Max I Via .. , ti . 4a, . Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Depth ft in out (sec/gt) (ppb Eq) cP Ib /100ft m1/30min mg /I % 1 11414 10.80 10.80 160 - 48 16 2.0 - - 12.6 BHA Run # 8 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 5rr3 Hycalog PDC MSX 8.5 0.530 6.64 11005' 11414' 409' 28 113 Lithology ( %): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 10 80 10 Gas Breakdown I H2S Data I Sample Line (Max: (Avg: ( Ambient Air Pit Room (Max: (Avg: I I Gas (units) Chromatograph (ppm) Measured Depth to '' to I to to to to I to to 1`, to I Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; WTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T -- - Trip...; F -- - Formation...; E -- - Early... 24 hr Recap: Finished TIH T/9923' MD. Rigged up cementing, circulated and conditioned mud for cement job. Shipped most of OBM I to mud plant. Max gas observed during circulation - 131 units. Average gas 36 units. 1 1 * Sample Boxes and Envelopes added to Total Charges. I * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. x.i Logging Engineer: Ryan Massey / Roman Krochuk * 10000 units = 100% Gas In Air 1 1 Customer: Brooks Range Report #: 25 = Well: Northshore 3 Date: 03/28/2010-03:00 I HALLIBURTON Area: Beechey Point 03:00 Depth 11414' Location: North Slope Progress 24 hrs: 0' I Sperry Drilling Rig: Nabors 16E Rig Activity: POOH Job No.: AK-AM-0007104245 Report For: J. Keener / D. Breedon I ,4, Daily Charges $2,500.00 Total Charges: $96,713.65 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: I ROP (ft/hr) 0.0 0' 0 0' Flow In (gpm) 0 SPP (psi) 0 Gas (units) 0 48 0 0' Flow In (spm) 0 Gallons/stroke 4.1860 Hole Condition Depth Tot Circ Hr Ann Enlrgmt Avg Diam pwr) Drilling - Min - Avg - Max [Cale at Stated Ciro Time] 11414' 65 bbls 8.77" All Circ - Min - Avg - Max I 111 - ,--"IRI=I■1111EIMIIM .„., • ,.. Mud Data: Density (ppg) Viscosity MBT PV YP HTHP pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP lb/100ft m1/30min mg/1 % I 11414' 10.80 10.80 160 48 16 2.0 - - 12.6 . , .. ... - BHA Run # 8 Bit Type Size TFA Hours Depth in / out Footage WOB RPM Condition 4 PDC Core Bit 6.5 0.530 4.94 11005' 11064' 59' 7 43 • 5rr3 Hycalog PDC MSX 8.5 0.530 6.64 11005' 11414' 409' 28 113 I ,... Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 10 80 10 • Gas Breakdown 1 H2S Data 1 Sample Line IMax: Avg: I Ambient Air Pit Room 'Max: lAvg: I Measured Depth Gas (units) Chromatograph (ppm) to to I to to to to I to to to 1 :':•• Gas Type abreviations: BG - Background Gas; GP - Gas Peak; CG - Connection Gas; VVTG - Wiper Trip Gas; POG - Pumps Off Gas; PG - Produced Gas; RG - Ream Gas; T-- - Trip...; F-- - Formation...; E-- - Early... I ', 24 hr Recap: Pumped cement plug from 9920' to 9600' MD. Pulled 3 stands and circulated BU. Pulled to 8199' MD and pumped 24bbls cement plug. Pulled 4 stands and circulated BU. Displaced OBM with WBM. Started POOH laying down pipe. Circulated and conditioned mud at shoe. Continued POOH and laying down pipe. 1 1 7: * Sample Boxes and Envelopes added to Total Charges. 1 I I * The 04:00 report adjusted to the 03:00 report due to problems associated with changing the clock in the Sperry Database while drilling. Logging Engineer: Ryan Massey / Roman Krochuk * 10000 units = 100% Gas In Air w ., 1 *L: . - .1//iM AIL:I AlliM": *.':'' f C ^...AMINKte ' .,C.:;:: , ' 7 6: : :: : 7 1 = M M =- 1111111 S NM M MI NM M MN X- MI M NM M 1-11kLL.I ES U Frrco ra WELL NAME: North Shore 3 LOCATION: Beechey Point Unit OPERATOR: Brooks Range Petroleum Corporation AREA: North Slope M� C3r lMrag MUD CO: Baroid STATE: Alaska RIG: Nabors 16E SPUD: 3- Mar -10 SPERRY JOB: AK -AM -0007104245 TD: 24- Mar -10 BIT RECORD BHA# SDL Bit # Bit Type Bit Depth Depth Footage Bit TFA AVG WOB RPM SPP FLOW GPM Bit Grade Remarks RUN # Size In Out Hours ROP (max) (max) (max) (max) 1 100 1 Hughes MXL -1X 12.25 105 528 423 5.60 0.942 75.5 11.8 192 1064 705 Bit Not Graded, Finished Drilling Pilothole, Trip Out to Build Rerun on Next Run Complete Drilling BHA 2 200 lrr1 Hughes MXL -1X 12.25 528 2685 2157 17.10 0.942 126.1 30.7 209 1847 753 1- 3- WT- A- 2- E -RG -TD TD Surface Hole 23:40 05-Mar-2010 Perform Wiper Trip prior to Trip Out 3 300 2 Hycalog DTX619M -D6 8.50 2678 9054 6376 54.32 0.902 117.4 38.2 259 2955 539 1- 3- CT- A- X- 1 -BT -PR Trip Out for Low Sliding ROP Retool BHA & Remove IB Stab Above MWD - 4 400 3 Hycalog MSX616M -A3D 8.50 9054 9054 0 0.00 0.778 0.0 - - - Bit Not Graded, Lay Down BHA After High SPP During Shallow Rerun on Next Run Pulse Test - Find Gravel in Bit Bit Not Graded, Lay Down BHA After High SPP During Shallow 5 400 3rr1 Hycalog MSX616M -A3D 8.50 9054 9054 0 0.00 0.778 0.0 Rerun on Next Run Pulse Test [Swtich MWD String Precautionary] 6 400 3 Hycalog MSX616M -A3D 8.50 9054 11005 1951 30.60 0.778 63.8 35.6 232 2993 470 1- 1- CT -N -X -I -NO-CP TD Section & Trip Out for Core Bit 7 600 4 BHC 406Z [PDC Core Bit] 6.50 11005 11064 59 4.94 0.530 11.9 10 91 1156 162 Bit Not Graded Core Sag River Sandstone fr 11005' to 11064' MD - Trip Out for Loaded MWD BHA 8 700 3rr2 Hycalog MSX616M -A3D 8.50 11005 11414 409 18.83 0.530 21.7 38.3 127 2717 484 TD Well 19:08 24-Mar -2010 = MI MI NM MI IIM r NE N 11111 MN MN N MN 111111 E r I MALLIBURTL71%1 WELL NAME: North Shore 3 LOCATION: Beechey Point Unit OPERATOR: Brooks Range Petroleum AREA: North Slope Sperry Drilling MUD CO: Baroid STATE: Alaska RIG: Nabors 16E SPUD: 3- Mar -10 SPERRY JOB: AK -AM- 7104245 TD: 28- Mar -10 Water- and Oil-Based Mud Record R600 /R300 /R200 /R100/ Date Depth Wt Vis PV YP Gels Filt R6/R3 Cake Solids oil/water Sd MBT pH Alk Mud AIk Filt Chlorides ASG Remarks ft - MD ppg sec lb/100 Ib/100ft2 m/30m Rheometer 32nds % % % ml ml Pm Pf /Mf mg/ SG 3 -Mar 249 8.70 160 27 38 29/50/70 13.0 92/65/55/40/25/22 31- 2.6 -/97.1 0.40 25.0 8.70 0.20 0.10/0.40 1600 2.660 Drilling Surface Hole 4 -Mar 744 9.00 124 31 36 19/44/63 13.0 98/67/55/39/18/17 3/- 4.7 - /95.0 1.50 20.0 8.20 0.05 0.05/0.30 1700 2.679 Drilling Surface Hole 5 -Mar 2671 9.40 190 25 49 25/78/81 12.5 99/74/64/47/26/24 3/- 7.9 - /91.8 2.00 15.0 8.40 0.03 0.03/0.35 1100 2.609 Drilling Surface Hole 6 -Mar 2685 9.10 35 14 13 8/22/27 13.0 41/27/21/15/7/5 3/- 5.7 - /94.0 0.75 12.5 9.20 0.07 0.07/0.30 1100 2.601 Laying Down BHA 7 -Mar 2685 9.30 45 17 10 4/11/- 13.0 44/27/20/13/3/2 2/- 7.2 - /92.5 0.75 11.0 8.40 0.10 0.10/1.10 1000 2.600 Cementing Casing 8 -Mar 2685 9.20 50 17 17 4/9/12 11.8 51/34/24/16/5/4 3/- 4.7 - /95.0 0.75 12.5 9.30 0.20 0.10/0.70 750 3.198 Work on BOPs 9 -Mar 2685 9.20 55 20 12 4/9/13 11.2 59/32/22/15/6/5 3/- 6.2 - /93.5 0.50 12.5 8.90 0.15 0.10/0.60 750 2.669 Nipple up BOP 10 -Mar 2685 9.20 56 20 13 5/9/14 11.2 53/33/21/16/6/5 2/- 6.2 -/93.5 0.50 12.5 8.90 0.15 0.10/0.60 750 2.669 Picking up Drill Pipe 11 -Mar 2704 8.80 37 15 10 4/7/12 12.2 40/25/17/14/5/4 2/- 5.7 -/94.0 0.50 12.0 8.50 0.10 0.10/0.50 750 1.980 Cleaning Pits for OBM �_ x.. DispTclieWBM: with Baroid (Enviromiit) _ '' Porn AgNo3' THTS ` WPS Elec Stab 12 -Mar 3356 10.15 120 41 17 10/18/22 2.0 99/58/44/29/9/8 -/2 13.1 52.0/32.0 0.10 5.0 2.60 3.20 242,931 486 2.721 Drilling Production Hole 13 -Mar 5727 9.35 100 24 12 8/12/15 2.4 60/36/25/16/7/6 -/2 6.6 62.0/28.0 0.10 4.5 2.70 2.30 275,974 470 3.362 Drilling Production Hole 14 -Mar 7366 9.40 89 29 14 9/15/17 2.0 72/43/34/21/8/7 -/2 6.7 62.0/28.0 0.15 4.8 2.70 2.70 277,490 590 3.249 Drilling Production Hole 15 -Mar 8900 10.40 95 26 22 9/15/18 2.0 74/48/37/24/8/7 -/2 6.6 62.0/28.0 0.10 3.9 2.80 2.70 282,622 520 3.263 Drilling Production Hole 16 -Mar 9054 10.40 99 31 18 9/18/19 2.8 80/49/36/24/9/8 -/2 13.0 58.0/26.0 0.10 6.5 2.50 2.70 276,362 550 3.068 Testing BOPs 17 -Mar 9054 10.45 125 32 17 10/18/19 2.0 81/49/37/25/9/8 -/2 12.8 58.0/26.0 0.10 5.4 2.60 2.60 284,261 565 3.130 Tripping In Hole 18 -Mar 9461 10.55 120 43 19 11/20/23 2.2 105/62/51/34/11 /10 -/2 12.8 56.0/28.0 0.10 4.4 2.70 3.00 276,668 610 3.172 Drilling Production Hole 19 -Mar 10766 10.50 91 43 13 6/10/11 2.0 99/56/40/24/6/5 -/2 11.9 68.2/31.8 0.10 9.8 2.70 3.40 282,889 540 3.299 Drilling Production Hole 20 -Mar 11005 10.70 106 48 19 7/11/12 2.0 115/67/48/29/7/6 -/2 12.7 66.7/33.3 0.10 7.2 2.80 3.10 284,020 604 3.316 Picking up Coring Tools 21 -Mar 11065 10.70 175 40 10 6/9/10 2.0 90/50/36/21/6/5 -/2 13.0 60.0/24.0 0.10 5.1 2.60 2.90 296,242 540 3.366 Coring Production Hole 22 -Mar 11065 10.75 162 40 10 6/9/10 2.0 90/50/36/21/6/5 -/2 12.0 61.0/24.0 0.10 4.2 2.60 2.80 293,603 565 3.630 Tripping In Hole 23 -Mar 11105 10.80 99 41 14 8/12/13 2.0 96/55/40/24/7/5 -/2 12.4 62.0/23.0 0.10 5.4 2.30 2.90 282,952 583 3.649 Drilling Production Hole 24 -Mar 11414 10.80 98 49 16 8/13/15 2.0 114/65/48/29/8/6 -/2 12.6 63.0/22.0 0.10 5.7 2.10 2.60 273,825 708 3.661 Tripping Out of Hole 25 -Mar 11414 10.80 160 48 16 8/13/17 2.0 112/64/49/31/9/7 -/2 12.6 63.0/22.0 0.10 5.4 2.10 2.50 274,177 702 3.671 Trip In Hole to P/A Well Displace 08M with WBM (mod * ' ' MBT pH Alk Mud Alk Filt Chlorides - Circulate Mud for P/A 26 -Mar - - - - - - - - - - - - - - - - - - 27 -Mar 11414 10.90 52 17 17 8/11/12 12.4 51/34/26/18/7/6 3/- 10.7 1/88.0 22.0 10.80 0.10 0.05/0.2 _ 750 3.893 Displaced OBM with spud mud Casing Record 20" Conductor @ 801 9 518" Surface @ 2678' 7" Production @ 12655' I I iAL■IIB lT Well Name: North Shore #3 Depth (MD) 6540 to 6555 ft 11711.4104- Location: Beechey Point Unit (ND) 6384 to 6398 ft Show Report Operator: Brooks Range Petroleum Corporation Show Report No. 1 Report Prepared By: Danny Kane Formation: West Sak Report Delivered To Doug Hastings Date: 21- Mar -10 Interpretation: Both the legacy and steam still gas extraction equipment show that the minor show seen within these two West Sak sandstone stringers has most likely non - producible hydrocarbons (insufficent steam still data for an accurate background). Formation drilled: I sandstone - clr, trsl, opq -wh, I gy, occ brn -dk brn, pred qtz, lith frag, of up -f up gr, calc, ttly cmtd, carb mat thru, v wk bri yel -wh flor, n cut. Gamma dropped to 60 -65api with resistivity spikes of 5 -6ohmm along with a slight decrease in porosity to 21 pu. Rio x Legacy Gas Extraction Hydrocarbon Ratios I Depth 6550 ft Gas Units 131 Steam Still Gas Extraction C1 C1 C1 C1 Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000 C1 17453 - 14347 = 3106 C1 /C2 = 81 I C2 92 54 = 38 C1 /C3 = 130 C3 24 0 = 24 C1 /C4 = #DIV /0! C4 0 - 0 = 0 C1 /C5 = #DIV /0! NPH I C5 0 - 0 = 0 Production 100 Analysis nGas f oil nWater nNon- Producible Hydrocarbons 2_1 �% lxlLegacy Gas Extraction ..- r I Depth 6555 ft Gas x Units 181 Steam Still Gas Extraction Gas --------------- Flowline Background Show ppm ppm ppm Hydrocarbon Ratios 10 - C1 24876 - 14347 = 10529 C1 /C2 = 153 C2 123 - 54 = 69 C1 /C3 = 405 C3 26 0 = 26 C1 /C4 = #DIV /0! Oil C4 0 - 0 = 0 C1 /C5 = #DIV /0! - • I C5 0 - 0 = 0 NPH Production 1 Analysis nGas f oil nWater n Non- Producible Hydrocarbons % Legacy Gas Extraction Hydrocarbon Ratios I Depth 6605 ft Gas Units 93 �x Steam Still Gas Extraction C1 C1 C1 C1 Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000.0 C1 799 - 0 = 799 C1 /C2 = 33 C2 24 0 = 24 C1/C3 = 40 C3 20 0 = 20 C1 /C4 = 27 NPH C4 30 - 0 = 30 C1 /C5 = 24 I C5 33 0 = 33 — __ Production 100.0 Analysis nGas foil nWater n Non- Producible Hydrocarbons Legacy Gas Extraction Depth ft Gas Units Steam Still Gas Extraction Gas I Flowline Background Show — ppm ppm ppm Hydrocarbon Ratios 10.0 C1 - = 0 C1 /C2 = #DIV /0! C2 - = 0 C1 /C3 = #DIV /0! Oil C3 = 0 C1 /C4 = #DIV /0! — C4 - = 0 C1/C5 = #DIV /0! --- -- - - - - -' C5 - = 0 NPH . Production 1.0 Analysis n Gas n Oil nWater n Non- Producible Hydrocarbons I I I I ... '' Well Name: North Shore #3 Depth (MD) 7907 to 7960 ft Location: Beechey Point Unit (TVD) 7702 to 7754 ft Show Report Operator: Brooks Range Petroleum Corporation Show Report No. 2a Report Prepared By: Danny Kane Formation: HRZ Report Delivered To: Doug Hastings Date: 21- Mar -10 I Interpretation: While the legacy extraction equipment was unable to measure the heavier hydrocarbons from the HRZ (although an increase in C1 -C3 was measured), the steam still did pick up an increase in the heavy hydrocarbon concentrations throughout the HRZ. Given I that these high gamma shales are known source rocks and that they were drilled underbalanced (see Show Report #3 for HRZ - sourced connection gasses), we have a weak gas show (non -light oil given the low heavy gas concentrations within the steam still). J % x Legacy Gas Extraction Hydrocarbon Ratios Depth 7920 ft Gas Units 763 Steam Still Gas Extraction Cl Cl Cl Cl C5 Flowline Background Show C2 C3 C4 ppm ppm ppm Hydrocarbon Ratios 1000 C1 83735 - 52866 = 30869 C1 /C2 = 44 I C2 1548 839 = 709 C1 /C3 = 153 C3 321 119 = 202 C1 /C4 = 702 C4 44 - 0 = 44 C1 /C5 = #DIV /0! NPH I C5 0 - 0 = 0 Production 100 _ ;' Analysis nGas f oil nWater nNon- Producible Hydrocarbons _ _2_1 H% (xiLegacy Gas Extraction I Depth 7940 ft Gas x Units 442 Steam Still Gas Extraction Gas — ... -------- _ Flowline Background Show ppm ppm ppm Hydrocarbon Ratios 10 - C1 54527 - 52866 = 1661 C1 /C2 = 7 ■ I C2 1092 839 = 253 C1 /C3 = 14 C3 238 119 = 119 C1 /C4 = 76 Oil C4 22 - 0 = 22 C1 /C5 = #DIV /0! - — 1 C5 0 - 0 = 0 NPH 1 Production Analysis nGas foil nWater n Non- Producible Hydrocarbons • 3 � Legacy Gas Extraction Hydrocarbon Ratios I Depth 7950 ft Gas x Units 353 x Steam Still Gas Extraction C1 C1 C1 C1 • Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000.0 C1 3581 - 2469 = 1112 C1 /C2 = 8 I C2 232 87 = 145 C1 /C3 = 13 C3 115 28 = 87 C1 /C4 = 21 NPH C4 76 - 22 = 54 C1 /C5 = 43 I C5 42 - 16 = 26 _ — — _ — — Production 100.0 Analysis (Gas foil (Water nNon- Producible Hydrocarbons Legacy Gas Extraction Depth ft Gas Units Steam m Still Gas as Extraction Gas — i n-- ----"-----:-......---.• 11 Flowline Background Show _ ppm ppm ppm Ste Hydrocarbon Ratios 10.0 C1 - = 0 C1 /C2 = #DIV /0! t I C2 - 0 C1 /C3 = #DIV /0! Oil C3 0 C1 /C4 = #DIV /0! C4 - = 0 C1 /C5 = #DIV /0! ---- - - - - -- C5 = 0 NPH Production 1.0 Analysis f Gas foil f Water f Non- Producible Hydrocarbons I I I BALL /81./R Well Name: North Shore #3 Depth (MD) 7907 to 7960 ft I Location Beechey Point Unit (TVD) 7702 to 7754 ft -fargry 11:11011111.144 SNOW Re port Operator: Brooks Range Petroleum Corporation Show Report No. 2b Report Prepared By Danny Kane Formation: HRZ (Connection Gas) Report Delivered To Doug Hastings Date: 21- Mar -10 I Interpretation: As mentioned in Show Report #2, the HRZ was drilled underbalanced with a 9.30ppg which resulted in a formation gas peak as well as significant connection gasses thereafter were measured; four large connection gasses were received over 1000 units before a sufficient I overbalanced mud weight was achieved. Steam Still analysis shows of these connection gas peaks sourced from the HRZ indicate an oil influx from the high gamma signature shales which are known to be oil- source rocks; however, MWD data indicates non - producible hydrocarbons. �% Legacy Gas Extraction Hydrocarbon Ratios Depth 8124 ft Gas x Units 6045 x Steam Still Gas Extraction Cl Cl Cl Cl Flowline Background Show C2 C3 C4 C5 ppm ppm ppm lit Hydrocarbon Ratios 1000 Cl 102477 - 5009 = 97468 C1 /C2 = 6 I C2 17362 236 = 17126 C1/C3 = 7 C3 13335 83 = 13252 C1 /C4 = 11 C4 8970 - 50 = 8920 C1 /C5 = 28 NPH C5 3530 - 32 = 3498 — Production 100 �; Analysis nGas nOil nWater nNon- Producible Hydrocarbons 21 - % I Legacy Gas Extraction I Depth 8219 ft Gas x Units 4488 Lx Steam Still Gas Extraction Gas Flowline Background Show ppm ppm ppm Hydrocarbon Ratios 10 - Cl 45515 - 5009 = 40506 C1 /C2 = 5 I C2 8428 • 236 = 8192 C1 /C3 = 5 C3 7825 83 = 7742 C1 /C4 = 7 01 C4 5824 - 50 = 5774 C1 /C5 = 20 - • I C5 2011 - 32 = 1979 NPH Production 1 Analysis nGas f Oil nWater nNon- Producible Hydrocarbons 31 % Legacy Gas Extraction Hydrocarbon Ratios ' Depth ft Gas H Units Steam Still Gas Extraction Cl C2 Cl C3 Cl C4 Cl Flowline Background Show C5 ppm ppm ppm Hydrocarbon Ratios 1 000.0 isi C1 - = 0 C1 /C2 = #DIV /0! I C2 0 C1 /C3 = #DIV /0! C3 0 C1 /C4 = #DIV /01 NPH C4 - = 0 C1 /C5 = #DIV /0! I P5 Production - = 0 — — _ _ — _ _ Analysis nGas nod nWater nNon- Producible Hydrocarbons 100.0 H Units % I (Legacy Gas Extraction _ _ _ _ I Depth ft Gas Steam Still Gas Extraction Gas .......... Flowline Background Show ppm ppm ppm Hydrocarbon Ratios 10.0 C1 - = 0 C1 /C2 = #DIV /0! I C2 - C1 /C3 = #DIV /0! Oil C3 0 C1 /C4 = #DIV /0! C4 - = 0 C1 /C5 = #DIV /0! ----- - - - - -' C5 Production - = 0 NPH ill 1.0 Analysis nGas nod nWater nNon- Producible Hydrocarbons I I I I Well Name: North Shore #3 Depth (MD) 8086 to 8180 ft I Location Beechey Point Unit (TVD) 7875 to 7966 ft Operator Brooks Range Petroleum Corporation Show Report No. 3 Report Prepared By: Danny Kane Formation: Upper Kuparuk Report Delivered To: Doug Hastings Date: 21- Mar -10 I Interpretation: The hydrocarbon show within the Kuparuk was contaminated by the high connection gas peaks from being underbalanced in the HRZ (sufficient mud weight wasn't built until after this interval). The two data points chosen have the least contamination (before the 8214' I 6045 unit CG) and no steam still samples were caught before the high connection gas peaks. There were very weak bright yellow to white shows within the cuttings at surface but without steam still data for the heavy gases, analysis shows a water -wet formation as confirmed by the resistivity. % x Legacy Gas Extraction Hydrocarbon Ratios Depth 8090 ft Gas �x Units 523 Steam Still Gas Extraction Cl Cl Cl Cl I Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000 - - Cl 61937 - 21406 = 40531 C1 /C2 = 36 I C2 1662 529 = 1133 C1 /C3 = 155 C3 374 112 = 262 C 1 /C4 = 643 C4 63 - 0 = 63 C1 /C5 = #DIV /0! NPH I P5 0 - 0 = 0 _ Production 100 _ = Analysis nGas foil nWater nN Producible Hydrocarbons i J % x Legacy Gas Extraction Depth 8110 ft Gas Units 367 Steam Still Gas Extraction Gas Flowline Background Show _ _ _ _ _ _ _ _ _ _ - _ - - _ ppm ppm ppm Hydrocarbon Ratios 10 - Cl 41052 - 21406 = 19646 C1 /C2 = 35 I C2 1090 529 = 561 C1 /C3 = 148 C3 245 112 = 133 C1 /C4 = 5 31 0 C4 37 - 0 = 37 C1 /C5 = #DIV /0! - - ' C5 0 - 0 = 0 NP-I Production 1 Analysis nGas foil nWater n Non- Producible Hydrocarbons • 3 � % I Legacy Gas Extraction Hydrocarbon Ratios I Depth ft Gas x Units IL- llSteam Still Gas Extraction Cl Cl Cl Cl Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000.0 _ .— Cl - = 0 C1 /C2 = #DIV /0! _ I C2 - = 0 C1 /C3 = #DIV /0! C3 0 C1 /C4 = #DIV /0! NPH C4 - = 0 C1 /C5 = #DIV /0! C5 - = 0 _, _ - _ _ - ....... -- Production 100.0 Analysis nGas f Oil (Water n Non- Producible Hydrocarbons 41 HUn % I (Legacy Gas Extraction Depth ft Gas Steam Still Gas Extraction Gas Flowline Background Show ------ - ppm ppm ppm Hydrocarbon Ratios 10.0 C1 - = 0 C1 /C2 = #DIV /0! I C2 - C1 /C3 = #DIV /0! Oil C3 0 C1 /C4 = #DIV /0! C4 = 0 C1 /C5 = #DIV /0! ---- - - - - -- C5 = 0 NPH I Production 1.0 Analysis n Gas nail nWater n Non- Producible Hydrocarbons I 1 1 4ALL1BUIRTOIV Well Name: North Shore #3 Depth (MD) 8436 to 8511 ft I o *9. Location: Beechey Point Unit (TVD) 8213 to 8285 ft SNOW Report Operator Brooks Range Petroleum Corporation Show Report No. 4 Report Prepared By Danny Kane Formation: Kuparuk C - Report Delivered To: Doug Hastings Date: 21- Mar -10 I Interpretation: Interpertation of the Kuparuk 01 indicates a few intermittent small gas caps grading towards light oil shows. Legacy gas extraction did show an increase in the heavier hydrocarbons, but steam still sample analysis does indicate a clear increase in the heavier gasses I sitting on the oil /gas hydrocarbon ratio boundry. Cuttings showed a calcareous- and siderite - cemented fine upper to medium upper grained sandstone and no oil fluorescence was observed within the loose sand grains (near impossible to pick w/ loose sands in the contaminated SOBM). 11 % x Legacy Gas Extraction Hydrocarbon Ratios Depth 8449 ft Gas �x Units 362 Steam Still Gas Extraction 01 C1 C1 01 I Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000 C1 39545 - 3567 = 35978 C1/02 = 29 I C2 1606 375 = 1231 C1/03 = 157 C3 481 252 = 229 C1 /C4 = 765 C4 194 - 147 = 47 C1/05 = #DIV /0! NPH 1 C5 0 0 = 0 Production 100 �� Analysis nGas nOil nWater nNon- Producible Hydrocarbons 21 % x Legacy Gas Extraction Depth 8477 ft Gas �x Units 270 Steam Still Gas Extraction G I Flowline Background Show ppm ppm ppm Hydrocarbon Ratios 10 - 01 23525 - 3567 = 19958 01/02 = 31 I C2 1025 375 = 650 C1 /03 = 202 C3 351 252 = 99 C1 /C4 = 713 011 II C4 175 - 147 = 28 C1 /C5 = #DIV /0! - - • 1 C5 0 0 = 0 NPH Production 1 • Analysis nGas nOil nWater nNon- Producible Hydrocarbons 31 Rio Legacy Gas Extraction Hydrocarbon Ratios Depth 8460 ft Gas �x Units 290 �x Steam Still Gas Extraction C1 C1 01 C1 • I Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000.0 01 10559 - 3365 = 7194 01/02 = 10 I C2 1690 - 933 = 757 01/03 = 22 C3 1763 1429 = 334 C1 /Ca = 24 NPH C4 2300 - 1998 = 302 01/05 = 20 I C5 1718 1367 = 351 — -- _ — — Production 100.0 Analysis nGas nOil nWater nNon Producible Hydrocarbons Legacy Gas Extraction 1 Depth ft Gas _ Units Steam Still Gas Extraction Gas _ ''''`. Flowline Background Show — "` ppm ppm ppm Hydrocarbon Ratios 10.0 01 - 0 01/02 = #DIV /0! I C2 - 0 01/03 = #DIV /0! Oil C3 0 C1 /C4 = #DIV /0! C4 - = 0 C1/05 = #DIV /0! ---- - - - - -- C5 = 0 NPH 1 . Production 1.0 Analysis nGas nOil nWater nNon- Producible Hydrocarbons 1 1 1 1 MALLIBLIIRTlarigi Well Name: North Shore #3 Depth (MD) 11022 to 11053 ft I Location: Beechey Point Unit (TVD) 10322 to 10345 ft Show Report Operator: Brooks Range Petroleum Corporation Show Report No. 5 Report Prepared By Danny Kane Formation: Sag River Report Delivered To: Doug Hastings Date: 22- Mar -10 I nterpretation: The Sag River formation show exhibited was observed within the cored interval from 11005 to 11064' MD; drilling parameters improved in the show interval when ROP doubled, coring torque increased 1.5kfps to 7.5kfps, and standpipe pressure fell by 60psi across the show indicating a cleaner formation where gamma averaged XXapi over the interval, resistivity spiked to Xxapi, and porosity incr /decred to XXpu. Lagged I sample analysis was hindered by poor hole cleaning parameters as well as an abundance of LCM & filter cake within the mud; core chips showed a clr -trsl, occ opq -It gy, rrly tn, pred qtz, of Iw -vf up, sb ang -sb rd, sb sph -elog, w srt, hd -v hd, brit, talc, sid & calc cmtd, glauc thru sandstone with strong white to very bright yellow fluorescence w/ a good milky white cut, very pale brown stain, and weak very strong hydrocarbon smell. Using steam still to measure true gas in mud, the hydrocarbon ratios suggest a light oil column within the Sag River show across the 197 unit formation gas peak. 11 u% Legacy Gas Extraction Hydrocarbon Ratios Depth 11025 ft Gas x Units 67 x Steam Still Gas Extraction C1 C1 C1 Cl I Flowline Background Show C2 C3 C4 C5 ppm ppm ppm Hydrocarbon Ratios 1000 C1 3876 - 221 = 3655 C1 /C2 = 11 I C2 354 17 = 337 C1 /C3 = 11 C3 361 34 = 327 C1 /C4 = 16 C4 287 57 = 230 C1 /C5 = 44 NPH C5 192 - 109 = 83 Production 100 — — Analysis n Gas 1710i1 nWater n Non- Producible Hydrocarbons 21 li% Legacy Gas Extraction Depth 11030 ft Gas x Units 160 x Steam Still Gas Extraction Gas I Flowline Background PPm PPm Show — �,; PPm Hydrocarbon Ratios 10* C1 7709 - 221 = 7488 C1/C2 = 11 I C2 712 17 = 695 C1 /C3 = 12 C3 660 34 = 626 C1 /C4 = 19 oil C4 446 - 57 = 389 C1 /C5 6a C5 226 - 109 = 117 NPH Production 1 Analysis n Gas MOH nWater n Non- Producible Hydrocarbons 31 °A Legacy Gas Extraction Hydrocarbon Ratios Depth 11040 ft Gas Units 197 �x Steam Still Gas Extraction C1 C1 C1 C1 I Flowline Background ppm ppm Show C2 C3 C4 C5 ppm Hydrocarbon Ratios 1000.0 C1 5269 - 221 = 5048 C1 /C2 = 9 C2 567 - 17 = 550 C1 /C3 = 9 I V# C3 585 34 = 551 C1 /C4 = 13 NPH � ` C4 436 - 57 = 379 C1 /C5 = 33 :: C5 264 - 109 = 155 ,„ _ I - Production # 100.0 — Analysis n Gas n Oil nWater nNon- Producible Hydrocarbons Legacy Gas Extraction Depth 11050 ft Gas Units 117 Nx Steam Still Gas Extraction Gas I Flowline Background Show _ _ _ — PPm PPm PPm --------- — — Hydrocarbon Ratios 10.0 C1 4966 - 221 = 4745 C1 /C2 = 12 C2 421 17 = 404 C1 /C3 = 12 Oil C3 420 34 = 386 C1 /C4 = 19 °° C4 301 57 = 244 C1 /C5 = 71 C5 176 - 109 = 67 NPH Production 1.0 I Analysis n Gas Roil ('Water nNon- Producible Hydrocarbons 1 I I HALLIBURTON Sperry (Drilling I FORMATION TOPS I North Shore 3 I Kelly Bushing 52 feet Drilled I Marker MD TVD TVDss Base Permafrost Colville Grp. I SV3 SV1 3099 3072 -3020 3746 3693 -3641 K -15 4172 4104 -4052 I W Sak D 5886 5734 -5682 W Sak Marker 5985 5850 -5798 HRZ 7860 7656 -7604 Kalubik Fm 8053 7844 -7792 I Kuparuk Fm 8081 7871 -7819 Kup C -1 8448 8215 -8163 LCU 8512 8286 -8234 I Miluveach Fm 8734 8500 -8448 J-4 9804 9450 -9398 Fault - 70` I J -3 9982 9582 -9530 J -2 10140 9692 -9640 J -1 10585 10006 -9957 Sag R Ss 10987 10296 -10279 I Sag C Shublik Fm 11031 10328 -10280 11087 10369 -10321 Ivishak Ss 11207 10456 -10407 TD 11414 10602 -10550 I I Brooks Range Petroleum Corporation I 1 I HALLIBURTON North Shore 3 Sperry Drilling Days vs. Depth I 0 I 11111111111111:t -. ._ I ■►. ■■,•' . 1000 /I♦II♦M111 �1, -- -- - 01 -Mar -2s 0 P Sperry S I - Brooks Range Petroleum Corporation I i on Locati" — t < -- -- 2000 —i--- 6. —T 1_ —� - -— Start 12.25" Surface Hole 105' MD, 105' TVC, 9 - On Bot: 20:53 03-Mar-2010 . I 3000 - -- — -- ----- -- - -- 1 4000 - -- -- -- -- -- -- -- -- -- - -- L Ca 2678 ' 9 4 D /8 / 2663' ng D I 5000 -- -- -- -- a -- - -- TD 12.2 �' Surface Hole 2 011 685' M 3 / 2670' TVD —' - Off Bot: 23:40 05- Mar -2010 i — Trip fcr BHA - Low ROP --- Stab Above Mb Causing _ 6000 — -- -- -- - -- 1 �� Stackng WOB/Low ROP �_ 9054' v1D, 8807' TVD Pro nosed 1 Off Bat: 01:02 16 -Mar -2010 •Actual 1 „ - 1nBot:065718-Mar-2010 - - 1- -- Q 7000 — ` -- -- - -- 1 Ca 8000 - -- Ca 0 ' i i f` 1 - 1 i - -- -- — /Prod Hole Ti T� 85 Intme 9000 -- - - MD / 1 � _ �.601 TVD ....�_....._ - -- III ' _., t , 11414 On Bot: 18:48!23- Mar -20 0 Reach ore Point , Off Bot: 19:08124- Mar -20 0 10000 - -- _ Trip_for ore Bit / B A 11005' D, 10309' D Off Bot: 04:08 20- = r -2010 / }--`' L _ -- -- -- -- -- - -- I 11000 - -- _ Ali , Core ` ag River S: ndstone 11064 MD, 1030• TVD , S perry DL Relea §ed 12000 - -- — _ On 1 -- B.: 15:08 21- ar-2010 ' :. -- — „- -- Off Bot: 19:59 21- ar -2010 �n 13000 ------ _--_---_ -- -- -- -- --- 1 14000 - -- -- — -- -- -- -- -- -- ' -- - -- 1 15000 i , I 0 4 8 12 16 20 24 28 32 36 40 44 Rig Days 1 1 1 HALLIBURTON Sperry Drilling Surface Data Logging After Action Review ' Employee Name: Ryan Massey Date: 27 Feb - 2010 Well: North Shore 3 Hole Section: Production What went as, or better than, planned: ' The implementation of the steam still worked very well with the oil based mud system. We were able to consistantly detect C1 -05 while the Legacy gas equipment was only detecting C1 -C2 and occasionally C3. Difficulties experienced: Did not experience significant difficulties on location as most were worked through on ' the previous well. We used the same set up as the Sak River well and only had a partial rig up after the rig move. The drilling rate was quite fast through the intermediate drilling section which drew concerns as the 10' sampling interval was approaching. The added 1 work load of catching mud samples in addition to the normal cuttings samples would be too much for the Sample Catchers to keep up with the drilling rate. A third Sample Catcher was sent to location to remedy this. 1 Recommendations: As mentioned during the Sak River well, the use of the Eagle trap could be utilized for ' wells that use oil based mud. If the Eagle trap is not a viable solution then the steam still is a must in order to detect the heavier hydrocarbons that the Legacy gas trap is unable to break from the oil based mud. Innovations and/or cost savings: ' As North Shore 3 is the second of two wells drilled for Brooks Range Petroleum this winter, most of the bugs and any potential computer problems were dealt with during the Sak River well. This allowed us to be very efficient with our time as we were not dealing with sensor or computer issues. The steam still worked perfectly on location and the ' customer was very satisfied with the results. The gas data collected from the steam still was valauble as our traditional gas dectection method failed to deliver similar data seen in the offset well. 1 1 1 1 1 LL North Shore 3 API 50- 029 - 23410 -0000 Digital Data EMF & PDF Logs ADI End of Well Report Halliburton Log Viewer EMF Viewer • Brooks Range Petroleu m Corporation • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format.
