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211-174
I H RECEIVED • li • MAR 15 2018 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT Arif9L%C la.Well Status: Oil ❑ Gas❑ SPLUG ❑ Other ❑ Abandoned 0 - Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑✓ • GINJ ❑ WIND ❑ WAG❑ WDSPL L❑ No.of Completions: Service Strati ra hic Te ❑ 9 p st 2. Operator Name: 6. [Abandoned,Ajwil,,-P61'5 14. Permit to Drill Number/ Sundry: Brooks Range Petroleum Corporation 57/S /sM.0211-174 / '!(S-1 S 4o 3.Address: 7. Date Spudded: 15.API Number:p u ber: S/i' 510 L Stree, Suite Su to 601,Anchroage,AK 99501 2/2/2012 50-103-20652-0000 4a.Location of Well(Governmental Section): 8. Date TD Reached: 16.Well Name and Number: Surface: 2426'FSL 1666 FEL S2 T1ON R7E UM • 2/182012 Mustang 1 jl( Topof ProductiveInterval: 98' 9. KB(ft above MSL): 17. Field/Pool(s 1754 FSL 785 FEL S1 T1ON R7E UM GLft above( bo e MSL): 69.3' • S. Miluveach Unit/Kuparuk RiverOil l Total Depth: 10. PlugBack Depth MD/TVD. p 18. Property Designation: z 1901 0 FSL 634 FEL SiS1 T1ON R7E UM 8975'MD/5958'TVD ADL 390680 - )es (Z 4b. Location of Well(State Base Plane Coordinates, NAD 27): 11.Total Depth MD/TVD: 19. Land Use Permit: Surface: x- 465312- y- 5940809 . Zone- 4 . • 9315'MD/6170'TVD - LAS 27505 TPI: x- 471444 y- 5940078 Zone- 4 12. SSSV Depth MD/TVD: 20. Thickness of Permafrost MD/TVD: Total Depth: x- 471464 y- 5940076 Zone- 4 NA 128TMD/1'242'TVD 5. Directional or Inclination Survey: Yes U(attached) No 2 13. Water Depth, if Offshore: 21. Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 NA (ft MSL) 22.Logs Obtained: Surface GR/Intermediate GR/Resistivity/Final GR/Resitivity, Neutron Density SEAMED JUN 1 5 2018 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD CASING GRADE AMOUNT FT. TOP BOTTOM TOP BOTTOM PULLED Cond. 94 A56 0 108' 0 108' 140 CF of Arctic Grage Surface 40 L-80 0 3069' 0 2448' 12.25" Cement to Surface, Plug Bk. Prod. 26 L-80 0 9110' 0 6044' 8.5" to 8,975'MD 24.Open to production or injection? Yes ❑No 0 • 25.TUBING RECORD Plugged Back to Intermediate Casing SIZE DEPTH SET(MD) PACKER SET(MD/TVD) 3 1/2"x 9.3# 2903' ;r‘ 26,ACID, FRACTURE,CEMENT SQUEEZE, ETC. Was hydraulic fracturing used during completion? Yes ❑ No ❑✓ 5/15115 Per 20 AAC 25.283(i)(2)attach electronic and printed information ,,-,,,, `, DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing, gas lift,etc.): 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 m.► Form 10-407 Revised 5/2015 `L CONTINUED ON PAGE 2 t i- .t Submit RIGINIAL o I a • 28. CORE DATA Conventiona uore(s): Yes ❑ No 7 / Sidewall Cores: Yes ❑ NoG,(Z If Yes, list formations and intervals cored(MD/TVD, From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed). Submit detailed descriptions,core chips, photographs,and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes s No [ Permafrost-Top 1287 1242 If yes,list intervals and formations tested,briefly summarizing test results. Permafrost-Base 1525 1451 Attach separate pages to this form,if needed,and submit detailed test SV-1 6005 4143 information,including reports, per 20 AAC 25.071. Torok 6816 4616 Iceburg 6732 5799 HRZ 8918 5920 Kalubik 9047 6003 K-1 9166 6077 Kup C 9190 6092 LCU 9305 6163 Miluveach Formation at total depth: 31. List of Attachments: Information to be attached includes,but is not limited to:summary of daily operations, wellbore schematic,directional or inclination survey,core analysis, paleontological report,production or well test results,per 20 AAC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Email: Lvendl@BRPCAK.com Printed Name: Lawrence J. endl /7 Signature: /,4• Phone: (907)865-5811 Date: 3/14/2018 ' `rz�4`1 INSTRUCTIONS General: This f'rm and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item la: 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 ib: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI (Top of Producing Interval). Item 9: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in oher spaces on this form and in any attachments. Item 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and,pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion), so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26.(Submit a separate form for each additional interval to be separately produce , 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(expl in). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Pursuant to 20 AAC 25.071,sub it detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results,including,but not limited to:porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including, but not limited to:core analysis,paleontological report,production or well test results. Form 10-407 Revised 5/2015 Submit ORIGINAL Only 0 A WAC li APP,rr TQ M us s Arae L Mustang ! FoR.R 10-407 ADC-,CC £v 3KITTAL As Left Diagram TS'RDOIcS1RAM-GE ?E DLEDH KkiRcH 1, 2012- _.....,...._,,,. 0tz. < BPV 3"H Vetco Gray 111 r''[ D # 33 1/2" ID 2.992"/OD 4.25" . , y00 - `y 9 3# EUE-Srd —_____�, r i-cE ,® 80'ND/80'MD 20"Conductor t Tam Collar 521'MD/520'TVD 9-5/8" �� .; Diesel Freeze Protection in 7 X 9 5/8"annulus 2357'MD 12040'TVD 88 Its 3-1/2"EUE 8rd tubing OH 12.25" @ 2903'MDw/BPV in tubing hanger ,dh ; 2,448'TVD 9 5/8" 40# a 3,069'MD L-80 BTC C1 cr 1J IV 2903'Diesel Freeze Protection in 3-1/2"Tubing 2903'Diesel Freeze Protection in 3-1/2"x 7"Annulus OH 8.5" Suspension Plug Back Cement 15.8 ppg TOC 8,975'MD 4.' Tested to 3500psi,Tagged w/5k k. ." :.. witnessed by(M.Herrera,AOGCC) 4.7A a .< 7"EZ Drill Retainer @ 9,030'MD 6,044'TVD 7" 26# '<`—9,110' MD L-80 BTC-M sir' A u.;7'"q ,Ll IA 6-1/8"OH @ 9315'MD/6170'TVD • f • • /4‘,/\N. Brooks Range Petroleum 510 L St#601,Anchorage,AK 9950 Bart Armfield Phone (907) 865-5840 Email: BArmfield@brpcak.com March 15, 2018 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Well Completion or Recompletion Report for Mustang 1,an Exploration well PTD: 211-174 API: 50-103-20652-0000 Dear Commissioners, Brooks Range Petroleum Corp. hereby submits, as requested by the AOGCC, a Well Completion or Recompletion Report, Form 10-407 for the plugging of Mustang 1. Evidently, the submission of the submission of this form was overlooked when the Mustang 1 well was plugged back and sidetracked in 2015. Submission of this form should rectify that situation. The original hole was abandoned and the well was sidetracked and subsequently plugged back to intermediate casing in May, 2015. The work was conducted using Nabors 16E. BRPC has plans to sidetrack the well, again, and complete the well as a horizontal producing well. The approximate date to re-enter and restart operations on this horizontal sidetrack could be as early as 4Q, 2018. Please find attached for the review of the Commission form 10-407 and necessary auxiliary information documenting the plug back operations for the original Mustang Exploration Ex loration well. If you have any questions or require further information, please contact me directly at 907-865-5840. Sincerely, rZ�a� Bart Armfield 3/0 t President-CEO Brooks Range Petroleum Corporation L7F T� • ,s,, THE STATE Alaska Oil and ash ate „fALAs T ©, Conservation Commission stf 333 West Sevenlh Av(6nue w,ti' N JP GOVERNOR BILL WALKER. Anchorage, Alaska 99501-13572 0"- Main: 907.279.1433 LA Fox: 907.276.7542 March 6, 2018 vyvyv.W.clogcc.alaskq.gov CERTIFIED MAIL RETURN RECEIPT REQUESTED 7015 0640 0003 5185 6281 Bart Armfield Chief Operating Officer Brooks Range Petroleum 510 L Street., Ste. 601 Anchorage, AK 99501 Re: Docket Number: OTH-18-008 Notice of Proposed Enforcement Action Failure to Submit Well Completion or Recompletion Report and Log (10-407) for the Plugging of Mustang-1 (PTD 211-174) Dear Mr. Armfield: The Alaska Oil and Gas Conservation Commission (AOGCC) hereby notifies Brooks Range Petroleum-(Brooks Range) of a proposed enforcement action. Nature of the Violations or Noncompliance (20 AAC 25.535(b)(1)). Brooks Range violated 20 AAC 25.070(3)by its failure to file a Well Completion or Recompletion Report and Log (Form 10-407) within 30 days after plugging of a well branch. Basis for Finding the Violation or Noncompliance (20 AAC 25.535(b)(2)). Permit to Drill No. 211-174 for the Mustang-1 exploratory well was issued to Brooks Range on January 23, 2012. The Mustang-1 well was drilled in 2012. On March 20, 2015, Brooks Range submitted an Application for Sundry Approvals to plug the well for redrill. The sundry application (Sundry No. 315-156) was approved on March 25, 2015. The Mustang-1A sidetrack well (PTD 215-059) was drilled in May 2015. Because Mustang 1-A could not have been drilled until Mustang-1 was plugged, Mustang-1 was plugged no later than May, 2015. Mustang-1 lies within state oil and gas lease ADL 390680. A Well Completion or Recompletion Report and Log (Form 10-407) is required to be filed with the AOGCC within 30 days after plugging of a well branch. No Well Completion or Recompletion Report and Log (Form 10-407) for the plugging of Mustang-1 has been filed. LL Docket Number: OTH-18-00.8 • March 6,2018 Page 2 of 2 Proposed Enforcement Action (20 AAC 25.535(b)(3). After consideration of the criteria set forth in AS 31.05.150(g), the AOGCC proposes no fine be imposed at this time upon the conditions that: 1. Within 30 days of receipt of this letter, Brooks Range shall file a Well Completion or Recompletion Report and Log (Form 10-407) for the plugging of Mustang-1; and 2. Within 30 days of receipt of this letter, Brooks Range shall provide the AOGCC a detailed description of the steps taken to ensure that such violations will not happen in the future. Failure to comply with these requirements will result in an additional enforcement action and a civil penalty. Rights and Liabilities (20 AAC 25.535(b)(4)). Within 15 days after receipt of this notification—unless the AOGCC grants an extension —Brooks Range may file with the AOGCC a written response that concurs in whole or in part with the proposed action described herein, requests informal review, or requests a public hearing under 20 AAC 25.540. If a timely response is not filed, the proposed action will be deemed accepted by default. If informal review is requested, the AOGCC will provide Brooks Range an opportunity to submit documentary material and make a written or oral statement. If Brooks Range disagrees with the AOGCC's proposed decision or order after that review, it may file a written request for a hearing within 10 days after the proposed decision or order is issued. If such a request is not filed within that 10-day period, the proposed decision or order will become final on the 11th day after it was issued. If such a request is timely filed, the AOGCC will hold enforcement of its decision in abeyance and schedule a hearing. If Brooks Range does not concur in the proposed action described herein, and the AOGCC finds that Brooks Range has violated a provision of AS 31.05, 20 AAC 25, or an AOGCC order, permit or other approval,then the AOGCC may take any action authorized by the applicable law including ordering one or more of the following: (i) corrective action or remedial work; (ii) suspension or revocation of a permit or other approval; (iii)payment under the bond required by 20 AAC 25.025; and (iv) imposition of penalties under AS 31.05.150. In taking action after an informal review or hearing, the AOGCC is not limited to ordering the proposed action described herein, as long as Brooks Range received reasonable notice and opportunity to be heard with respect to the AOGCC's action. Any action described hereto or taken after an informal review or hearing does not limit the action the AOGCC may take under AS 31.05. Sincerely, Hollis S. French Chair, Commissioner DRILLING IIIIRT Stoats Range Pellokvnl Craps WELL:Mustang 1A CONTRACTOR:Nabors I RIO:I 16-E RPT DATE: 5/11/2015 ACTNITY:I 5/10/2015 SPUD DATE: _ DRILLING SUPERVISOR 1:Adam Johnston _ li AFE#:640051 API#:l50-103-20852-01.00 DFS: DRILLING SUPERVISOR 2:Ronnie Dalton LEASE:390680 REPORT NO:1 TOOLPUSHER 1:Wayne Stout FIELD:Mustang DOL:1 TOOLPUSHER2:Gary Gibson ELEV:75 RKB: 34.30 LAST BOP TEST: RIG PHONE#:907-754-9440 MD:9,117 TVD: 6,067 NEXT BOP TEST:, LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG: HRS DRLO: I CSOND: I 108 AFE AMOUNT: $11,935,000 AFE CUM. $231,483 Rig accepted©00:00 5/10.Rig up flow back tank and lines for displacement,bring on heated KCL water and pressure test IA to t000ps1.Mid displacement,shut down for leaking OA 24 HOUR opening,repairing. SUMMARY Finish displacement,Nipple up SOP's and test per plan. Pull kill string and prepare gpt clean out run. ACTIVITY PLANNED • FROM TO NM OPERATIONS 00:00 12:00 12.0 Rig Accepted midnight May 10th.Set fuel tank and finish berms. Set flow back tank,pull cap off top of tree and swap to flange with 1502 adapt. Hook up plug valve and hose to kill well. Hook up chart recorder to Bow back.Take on 100 bbls of water and bring to temp with steam. Blow down TDS. 12:00 16:00 4.0 Rigged up pressure testing linen to existing well head tree.Transfer water Into pits from Tank Farm and Prudhoe Hot Water.Pressure test mud lines and mud manifold. / 16:00 17:00 1.0 Changed out mud system,primed lines to 31/7 EUE.Pressure test to 1000 psi. 17:00 00:00 7.0 Pumped 80 bbls of 95 deg KCL with soap into 31/?EUE to displace freeze protect.Stopped when noticed diesel leaking from lower annular 7 opening,observed 2"valve missing. Further Inspection revealed threads had been partially pulled out of hole. No environmental impact attempting repair. TOTAL HRS 24.0 MORNING UPDATE Threads repaired.Nipple,Halliburton valve and 1502 adaptor instilled. Halliburton valve closed,gauge and needle valve added-100 psi observed.Finishing displacing freeze protect diesel with 2%KCL. MUD RECORD MUD 1 011-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME _ 11:30 _ ACTIVITY _ DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 95 1.RIG UP/DOWN 16.0 16.0 ACE 1 DEPTH/TVD(ft) 2-DRILLING ARRC MUD WEIGHT/TEMP(lb/gal) 3-REAMING BAKER HUGHES SOLIDS(%Vol) 4-CORING BEAR WATCH FUNNEL VISCOSITY(e/qt) 5-CIRCULATE&CONDITION 8.0 8.0 BRPC _ - 4 RHEOLOGY TEMP(°F) 6-TRIPPING CH2MHILL R800/R300 -------_---- 7-SERVICE RIG --- DOYON(Camp) 2--- R200/R100 8-DOWNTIME DOYON(Security) 2 R6/R3 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(cP) 10-WIRELINE SURVEYS GER 1 YP(lb/100ft2) 11-LOGGING . HALLIBURTON 1 OIL/WATER(%Vol) 12-RUNCASING/CEMENT KAS 8 10s/10m/30m GELS(lb/b OAz // /f 13-WAIT ON CEMENT MISWACO API FLUID LOSS(ec/OOmin) , 14-NIPPLE ON UP/DOWN BOP'S NABORS 26 HTHP FLUID LOSS(cc/30min) 15-TEST BOPS NORDIC 3 CAKE APT/HT(1/321 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Vol) 17-PLUG BACK PM CORRECT SOLIDS(%Vol) 18-SQUEEZE CEMENT SCHLUMBERGER OIL(%Vol) 19-FISHING OTHER 1 UNCORR WATER(%Vol) 20-DIRECTIONAL WORK OIL/WATER RATIO . 21-MISCELLANEOUS ALKAL MUD(Pom) 22-MEETINGS CL WHOLE MUD(mg/L)• 23-WELL CONTROL SALT(%WAL 24-COMPLETION LIME(Ib/bbl) 25-COMPLETION(STANDBY) ~TOTAL 57 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL 6053 1689 4364 ECD(ppg) CAMP FUEL 1 FLOW IN(gpm) SUPPORT FUEL • 5370 1005 4365 PUMP PRES(psi) TOTAL FUEL 11423 2694 8729 ROP(FPH) POT WATER 36 -36 MST(Ib/bbl) HSE pH/TEMP SAFETY MEETINGS BEAR SIGHTINGS: No PNMT(0) Prepare for Displace I Displace/NN GOP's OTHER WILDLIFE: No CHLORIDES(mg/L) ACCIDENTS: No SPILLS: No HARDNESS(Ca++) WEATHER DAILY HIGH i 35 i DAILY LOW I 27 CASINO OD WT GRADE MD TVD MAXWIND/DIR 2mphE MAX CHILL 26 Conductor `20 60 L-80 110 110 PRECIPITATION 1 VISIBILTY 7miles Surface 9-5/8 40 L-60 3069 2448 COMMENTS Areas of fog,light rain(freezing),East winds Intermediate 7 26 l30 9117 6087 BHA DESCRIPTION _ __ __ LENGTH BHA.WT AIR BHA WT.MUD HRS.ON JARS -- - ----ROT WT. P.II VJT . 8.0 WT. TORQUE ..... , . ill . // i DRILLING•RT Swans Range Petroleum Capa WELL:Mustang 1A CONTRACTOR:Nabors RIO: 1 '6E RPT DATE: 5/12/2015 ACTIVITY:I 5/11/2015 SPUD DATE: _ DRILLING SUPERVISOR 1:Adam Johnston • AFE N:640051 API S:I50-103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Ronnie Dalton LEASE:390880 REPORT NO:2 TOOLPUSHER 1:Wayne Stout FIELD:Mustang DOL:12 TOOLPUSHER 2:Gary Gibson ELEV:75 RICE: 34.30 LAST BOP TEST:5/11/15 _ RIO PHONE 6:907-754-9440 MD:9,117 TVD: 6.087 NEXT SOP TEST:5/25/2015 LAST SHOE TEST DATE: 5/11/2015 SHOE TEST: 4,000 24 HR FTO: HRS DRLG: I CSOHD: I 108 AFE AMOUNT: $11,935,000 AFE CUM. 5429,599 24 HOUR Repaired threads on lower annulus and installed valve,cap and gauge. Circ out freeze protect with 2%KCL water and soap. Flush with water and test 7'to 4K psi. Nipple up BOP's and SUMMARY start testing. ACTIVITY Finish testing GOP's 250/4030 psi.and rig down testing equip. Pull tubing hanger and pull 3.5"tubing,lay down same. Prepare for clean out run with scraper to 9,110'MD,EZ drill retainer a 9030' PLANNED FROM TO HRS OPERATIONS 00:00 04:30 4.5 Chased threads on lower annulus,made up high pressure nipple,Halliburton valve and plug with gauge and needle valve-100 psi on gauge.Circ 110 bbls of 90 degree 2% KCL with Safe Surf. 04:30 05:30 1.0 Circulate en additional 150 bleb of heated water with 2%KCL,no soap added to this circulation. 05:30 08:00 0.5 Pressure test T casing to 4000 psi,charted for 30 min. — --_ 06":00 06:30 0.5 Circulate another 100 bbls of heated 2%KCL water®60 spm,300 psi pump pressure. 08:30 08:00 1.5 Nipple down existing VETCO tree and remove from cellar. Set OSA in cellar. _- 08:00 1200 4.0 Nippling up GOP's-Set DSA studs to long,pull DSA,remove studs and clean bolt holes. Make up studs. Mechanic had to cut 7 studs shorter to make correct length 12:00 22:00 10.0 PJSM and continue to nipple up GOP's. Set stack and rigged up all lines and trip nipple. 22:00 23:00 1.0 Bring all test equipment to rig floor and rig up for testing. • 23:00 00:00 1.0 Add VIS to 30 blah of mud In the pHs,circulate in stack to flush and clean top of hanger.Prepare to test GOP's • • • TOTAL HRS 24.8 -- — ---- I' MORNING UPDATE Continue testing BOP's 250/4000 psi. Test all rams,choke and manual kill,test check all valves,shears,HCR,dart valve and TDS.Perform accumulator draw down test • MUD RECORD MUD 1 MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME . ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) 95 1-RIG UP/DOWN 16.0 ACS 1 DEPTHITVD(ft) 2-DRILLING ASRC . MUD WEIGHT/TEMP(lb/gel) 3-REAMING BAKER HUGHES SOLIDS(%Vol 4-CORING BEAR WATCH FUNNEL VISCOSITY(s/qt) 5-CIRCULATES CONDITION 7.0 15.0 BRPC 4 I RHEOLOGY TEMP('F) 6-TRIPPING CH2MHILL R600/R300 7-SERVICE RIG DOYON(Camp) 2 R200/R100 8-DOWNTIME DOYON(Security) 2 R6/R3 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(oP) . 10_ 0-WIRELINE SURVEYS GBR 1 YP(lb/100 f 11-LOGGING HALLIBURTON 1 — OIL/WATER(%Vol) 12-RUN CASING/CEMENT _ 0.5 0.5 KAS 8 10s/10m/30m GELS(I6/1001ta // // 13-WAIT ON CEMENT MISWACO API FLUID LOSS(cct3omin) 14-NIPPLE ON UP/DOWN BOP'S 15.5 16.5 NABORS 26 HTHP FLUID LOSS(cc/30min) 15-TEST BOP'S 1.0 1.0 NORDIC 2 CAKE APT/HT(1/32') 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Vol) 17-PLUG BACK PRA CORRECT SOLIDS(%Vol)_ 1B-SQUEEZE CEMENT _ SCHLUMBERGER 3 OIL(%Vol 19-FISHING OTHER 1 UNCORR WATER(%Vol __ 20-DIRECTIONAL WORK OIL/WATER RATIO 21-MISCELLANEOUS ALKAL MUD(Pom) 22-MEETINGS CL WHOLE MUD(mg/L) 23-WELL CONTROL SALT(%Wt) 24-COMPLETION LIME(Ib/bbl) 25-COMPLETION(STANDBY) 'DOTAL 59 EMUL STABILITY _ CONSUMABLES START RECEIVED . USEDTODAY'S INV. SAND(%Vol ---- RIG FUEL _-- 4364 -----2055 1391 5028 ECD(ppg) CAMP FUEL FLOW IN(gem) SUPPORT FUEL ---4365 -----4508 -143 PUMP PRES(pal) TOTAL FUEL 8729 2055 5899 I 4885 ROP(FPH) --- POT WATER -38 150 72 42 MBT(lb/No) ____— HSE pH/TEMP SAFETY MEETINGS BEAR SIGHTINGS: No Pf/Mf(0(0) Nipple up BOP's � Test BOP'a OTHER WILDLIFE: No CHLORIDES(mg/L) ACCIDENTS: No SPILLS: No HARDNESS(Ca++) WEATHER DAILY HIGH 1 35DAILY LOW 28 CASINO OD WT GRADE MD TVD MAX WIND/DIR 14 mph W MAX WIND CHILL 23 Conductor 20 60 L-80 110 110 PRECIPITATION 0 VISIBILTY ._ 10 miles Surface 9-5/8 40 L-80 3069 2448 COMMENTS Areas of fog,cloudy,lows may reach 24 wth 10-15 mph winds Intermediate 7 26 L-60 9117 6087 BHA -- —� DESCRIPTION ------ --- --� -- -- LENGTH - BHA.WT AIR BHA WT.MUD i '-------- HRS,ON JARS --_—'_--- _ -- _ ROT WT_ P,U Wi ____8.0 WT. —_____ TORQUE • DRILLING•RT 9roocs Ramie Petroleum Carpe WELL:Mustang 1A CONTRACTOR:Nabors I RIO: I 18-E RPT DATE: 5/13/2015 ACTIVITY: 5/12/2015 SPUD DATE: DRILLING SUPERVISOR 1:Adam Johnston AFE 1h.640051 API 0:150-103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Ronnie Dalton -_.- LEASE:390680 REPORT NO:3 TOOLPUSHER 1:Wayne Stout FIELD:Mustang DOL:3 TOOLPUSHER 2:Gary Gibson ELEV:75 RKB: 34.30 LAST BOP TEST:5/11/15 _ RIO PHONE 8:907-754-9440 MD:9,117 ND: 6987 NEXT BOP TEST:5/25/2015 LAST SHOE TEST DATE: 5/11/2015 SHOE TEST: 4,000 24 HR FTG: HRS DRLO: I CSOHD: I 108 AFE AMOUNT: 511,935,000 AFE CUM. $714,573 24 HOUR Test BOPS.Pull tubing Hanger to floor and remove TWC.LD 312"EUE tubing.Test Upper and lower rams and annular preventer with 412"Testjoint.(rams with 4"also.)Set wear ring. SUMMARY ACTIVITY PU 270jfs drill pipe.CBU and P01-I Standing back in Derrick.MU cleanout BHA and continue to pick up enough drill pipe to TD well.RIH and Cleanout to 7"shoe+20'of ratiole. PLANNED FROM TO HRS OPERATIONS 00:00 09:00 9.0 MU choke block to choke hose.Flood choke and kill lines.Test choke mantfold,blind rams,dart valve,TIW valve,Upper IBOP and lower manual valve to 250psi/4000psl low/high for 5m1n each.Test Annular preventer with 312"Test joint to 250/4000psi low/high for 5min ea.Test pas alarms. 09:00 09:30 0.5 LD 3 12"test joint.AOGCC representative Matt Herrera Waived witness of BOP test 09:30 12:00 2.5 Attempt to pull TWC.Attempt to wash port with water and air without success.Remove LOS to drain stack and wash again.Install LDS and Pump at 7bpm to attempt to clear. Attempt to latch on again without success 12:00 13:30 1.5 PU landing joint and pull hanger to floor.UW-110K. 13:30 17:00 3.5 RU casing crew and ID 3 1/2"EUE tubing from 2700'to 1584'.U/W-80K. 17:00 17:30 0.5 Service TD,Blocks,Swivel,and Link tilt. 17:30 18:00 0.5 70amp breaker for brake coolant pump failed.Replace with new breaker. C ) 18:00 20:30 2.5 LD 3 1/7'EUE tubing from 1584'to surface. C 20:30 23:30 3.0 RU test equipment.Set test plug.Test top and bottom pipe rams wth 4 1/7 test joint to 250/4000psi low/high for 5min each.Test annular preventer with 41/7 test joint to fZ Of 250/2500psi bw/high for 5 min each.Test upper end low pipe rams with 4"test joint to 250/4000psi low/high for 5min each. ✓ V 23:30 00:00 0.5 Install wear ring end LD test joint end Test plug. TOTAL HRS 24.0 MORNING UPDATE PU drill pipe at 2500'as of 0600. MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 23:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(•F) 95 1-RIG UP/DOWN 16,o ACS 1 DEPTH/ND(ft) 2-DRILLING ASRC MUD WEIGHT/TEMP(lb/gal) 12.5 3-REAMING BAKER HUGHES SOLIDS(%Vol) 28 4-CORING BEAR WATCH FUNNEL VISCOSITY(s/qt) 42 5-CIRCULATE B CONDITION 15.0 BRPC 5 RHEOLOGY TEMP(°F) 120 8-TRIPPING 0.5 0.5 CH2MHILL R600/R300 35/24 7-SERVICE RIG 0.5 0.5 DOYON(Camp) 2 R200/R100 18/13 8-DOWNTIME 0.5 0.5 DOYON(Security) 2 RB/R3 4/3 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(cP) 11 10-WIRELINE SURVEYS GBR 2 YP(Ib/100ft0) 13 11-LOGGING HALLIBURTON 3 OIUWATER(%Vol) 72 12-RUN CASING/CEMENT2.5 3.0 KAS_ 8 10s/10m/30m GELS(Ib/100fta 3140 // 13-WAIT ON CEMENT MISWACO 2 API FLUID LOSS(ccf30min) 3.3 14-NIPPLE ON UP/DOWNBOP'S 15,5 NABORS _______26 HTHP FLUID LOSS(cc/30mbn) 15-TEST BOP'S 12.5 13.5 NORDIC 2 CAKE APT/HT(1/37') 1 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Vol) 17-PLUG BACK PRA _- CORRECT SOLIDS(%Vol) 28 18-SQUEEZE CEMENT SCHLUMBERGER 4 OIL(%Vol) 19-FISHING OTHER 1 UNCORR WATER(%Vol) 20-DIRECTIONAL WORK OIUWATER RATIO 21-MISCELLANEOUS 2.5 2.5 ALKAL MUD(Pom) 0 22-MEETINGS CL WHOLE MUD(mg/L) 3,300 23-WELL CONTROL SALT(%Wl) 0 24-COMPLETION I 5.0 5.0 LIME(Ib/bbl) 25-COMPLETION(STANDBY) TOTAL 68 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) .1 RIG FUEL 5028 9137 2193 11972 ECD(ppg) CAMP FUEL FLOW IN(plan) ---- SUPPORT FUEL --- - -143 6078 1181 4754 PUMP PRES(pal) TOTAL FUEL 4885 15215 3374 16728 ROP(FPH) --- POT WATER . 1 42 42 _ ' MBT(Ib/bbl) HSE pWTSMP 9.6 SAFETY MEETINGS BEAR SIGHTINGS: No PNMT(0) .2/.7 LD Work String I PU Drill Pipe OTHER WILDLIFE: _ No CHLORIDES(mg/L) 3,300 ACCIDENTS: Na SPILLS: No HARDNESS(Ca++) 320 WEATHER DAILY HIGH I 41 I DAILY LOW 27 CASINO OD WTGRADE MD ND MAX WIND/DIR W 7mph MAX WIND CHILL 19 Conductor 20 60 L-80 110 110 PRECIPITATION 0 VISIBILTY 8 Surface 9-5/8 40 L-80 3089 2448 COMMENTS Cloudy.Scattered snow showers In the evening.Areas of fog.Lows in the lower 20s.West Intermediate 7 26 L-80 9117 .' 6087 BHA DESCRIPTION - -" LENGTH BHA WT AIR BHA WE.MUD FIRS.ON JARS --- ROT WT. P.11 WT 5.0 WT. TORQUE • /\,.^..., DRILLINGRT m, Brooks Range PetroleuCar . WELL:Mustang 1A CONTRACTOR:[Nabors IRIG:I 16-E RPT DATE: 5/14/2015 ACTIVITY:I 5/13/2015 SPUD DATE: DRILLING SUPERVISOR 1:Adam Johnston AFEIR 640051 API#50.103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Jerry Haberlhur LEASE:390680 REPORT NO:4 TOOLPUSHER 1:Wayne Stout FIELD:Mustang DOL:4 TOOLPUSHER 2:Jeardoe/Potter -_ ELEV:75 RKB: 34.30 _ LAST BOP TEST:5/11/15 RIG PHONES:907-754-9440 MD:9,117 TVD: 6,087 NEXT BOP TEST:5/252015 LAST SHOE TEST DATE: 5/11/2015 SHOE TEST: 4,000 24 HR FTO: HRS DRLO: I CSGHD: I 108 AFE AMOUNT: $11,935,000 AFE CUM. $834,374 24 HOUR PU 4"OP to 225'.Wash through Ice plug II 225'to 7501 Cont.PU DP f/750'to 3800'.COU.POH stand back DP.PU BHA#1.RIH PU DP to 4384'.RIH f/derrick to 7116'. SUMMARY ACTIVITY Continue to RIH wl BHA#1,Tag cement Drill cement.Tag&drill Bridge plug at-9037'.Monitor well.Clean out wellbore until cement encountered or original TD at 93221 PLANNED FROM TO HRS OPERATIONS 00:00 01:00 1.0 PU 4"DP to 225'.Tagged Ice plug at 225' 01:00 04:00 3.0 Wash down through Ice plug w/stands f/derrick 6 225'to 750'. - ------- 04:00 06:00 4.0 Continue to PU 4"DP f/750'to 3800'. 08:00 08:30 0.5 CBU at3800'w/3.5 bpn,180psl. 08:30 12:00 9.5 POH f/3800'(SLM).RU tongs to break out tight corrections.Blow down Top Drive.NOTE:Lower annulus pressure•200 psi. 12:00 13:00 1.0 PU BHA#1(clean out BHA)to 465'. -- -- 13:00 21:30 8.5 PU 4"DP f/pipeshed f/465'to 4364'. - 21:30 22:00 0.5 Service rig.Top Drive,Blocks,Wash Pipe Packlrg,etc. --- 22:00 00:00 2.0 RIH w/DP f/derrick f/4364'to 7116'. TOTAL HRS 24.0 Continue to to RIH f/716'to 8958'.Taking weight at 8958'.Set down and cordlnn w/10k down weight.PU 8 hold PJSM on displacing well to 12.3 ppg Flo-Pro.Displace well ft MORNING UPDATE brine to 12.3 ppg Flo-Pro.Initial circulating rate&pressure•4.5 bpm,55 psi.Final rete&pros.•6 bpm,1350 psi.Continue to circulate 8 condition per Mud Engineer.Test 7" Casing to 4000psi for 10min.Prepping to drill out cement and Bridge plug as of 06:00. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 23:00 14:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(•F) 1-RIG UP/DOWN 16.0 ACS 1 DEPTH/TVD(ft) 7500 2-DRILLING ASRC MUD WEIGHT/TEMP(lb/gal) 12.3 12.4 3-REAMING 3.0 3.0 BAKER HUGHES SOLIDS(%Vol) 27 28 4-CORING BEAR WATCH FUNNEL VISCOSITY(a/gt) 40 48 5-CIRCULATE&CONDITION 0.5 15.5 BRPC 5 RHEOLOGY TEMP CF) , 120 120 8-TRIPPING 20.0 20.5 CH2MHILL R600/R300 35/24 38/27 7-SERVICE RIG- 0.5 DOYON(Camp) ---- 2 R200/9103 18/14 17/14 8-DOWNTIME DOYON(Security) 2 RE/R3 5/4 7/6 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 - PV(cP) __- 11 11 10-WIRELINE SURVEYS GBR 1 YP(lb/100 ft') 13 ' 16 11-LOGGING HALLIBURTON ------ 6 01LIWATER(%Vol) 72 72 12-RUN CASING/CEMENT KAS S 10s/10m/30m GELS(lb/100R°i 6/9/12 9/11/14 13-WAIT ON CEMENT MISWACO 2 API FLUID LOSS(cc/3Omin) 3_-_ 2.8 14-NIPPLE ON UP/DOWN BOP'S NABORS 27 HTHP FLUID LOSS(cc/30min) 15-TEST BOP'S • NORDIC --}- 2 CAKE APT/HT(1/32") 1 1 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Vol) 17-PLUG BACK PRA CORRECT SOLIDS(%Vol) 27 72 18-SQUEEZE CEMENT SCHLUMBERGER 4 OIL(%Vol) 19-FISHING OTHER 1. UNCORR WATER(%Vol) 20-DIRECTIONAL WORK _ OILNVATER RATIO 21-MISCELLANEOUS 2.5 ALKAL MUD(Porn) - 0 0 22-MEETINGS CL WHOLE MUD(man.) 3,500 3,000 23-WELL CONTROL 11111 -- SALT(%Wt) • 0 0 24-COMPLETION _ 5.0 LIME(Ib/bbl) 25-COMPLETION(STANDBY) TOTAL 69 EMUL STABILITY _ _ _ CONSUMABLES START_ _RECEIVED __USED _TODAY'S INV. SAND(%Vol) .1 TRACE RIG FUEL 11972 4933 1540 15425 ECD(�) - CAMP FUEL FLOW IN(gpn) ----_------- SUPPORT FUEL --- ---_4754 1914 2840 PUMP PRES(psi) _-_- TOTAL FUEL 18726 4999 3454 18285 ROP(FPH) -_---- POT WATER 42 42 MBT(Iblbbl) _-- --_--___ HSE pH/TEMP 9.8 9.8 SAFETY MEETINGS BEAR SIGHTINGS: NO • Pf/Mf(0) _._._..__.2/.7 .2/.9 PU Drill Pipe I RIH Clean out run. OTHER WILDLIFE: NO • CHLORIDES(mg/L) 3,500 3000 ACCIDENTS: NO SPILLS: NO • HARDNESS(Ca++) 280 260 WEATHER _ DAILY HIGH36 CASINO OD WT GRADE MD TVD ------ I---- -L_DAILY LOW I 24__ MAX WIND/DIR E 25mph MAX WIND CHILL 8 __Conductor 20 60 L-80 110 110 PRECIPITATION 1 VISIBILTY 3ml Surface 9-5/8 40 L-80 3089 2448 COMMENTS Mostly dourly.Areas of fog.Lows In the mid 205.East winds 10 to 20 mph. -__Intermediate 7 26 L-80 9117 6087 _ BHA DESCRIPTION Clean Out BHA _ _ LENGTH 465 BHA.WTAIR 14283 BHA WT.MUD HRS.ON JARS -- - __ ROT WT. P.0 WF 5.0 WF. _..---TORQUE - - - • tn,v Como, DRILLING FeRT WELL:Mustang 1A CONTRACTOR:Nabors RIO:I 18.5 RPT DATE: 5/15/2015 ACTNITY:I 5114/2015 SPUD DATE: DRILLING SUPERVISOR 1:Adam Johnston AFE 6:640051 API f;I50-103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Jerry Haberlhur LEASE:390680 _ REPORT NO:5 _ TOOLPUSHER 1:Wayne Smut FIELD:Mustang COL:5 TOOLPUSHER 2:Jeardoe/Potter ELEV:75 RKB: 34.30 LAST BOP TEST:5/12/15 RIO PHONE f:907.754.9440 MD: TVD: NEXT BOP TEST:5R6R015 LAST SHOE TEST DATE: 51112015 SHOE TEST; 4,000 24 HR FTG: HRS DRLO: 13.5 CSOHD: 1 108 AFE AMOUNT: $11,935,000 AFE CUM. $1,084,629 24 HOUR RIH f/7116 V6958'and tag cement.Displace well to drilling fluid.CBC.PT casing to 3950psi.CBC.Drill Cement f/896659035'.Tag BP®9035 and mit plug.Drill cement to 9049'.CBU. SUMMARY Continue CBU.Perform casing/cement test to 16.1ppg EMW.Continue to drill cementf/9049'to 9122'.CBU.Perform FIT to 15.Bppg EMW.POH.LD BHA and PU directional BRA.RIH and ACTIVITY PLANNED Drill Build Section. FROM TO HRS OPERATIONS t 0000 02:30 2.5 RIH f/718"to 8958'.Tagged cement at 8958'.Set down 10k to confirm. �c 02:30 04:00 1.5 Displace well f/Brine m 12.3 ppg Flo-Pro.Initial rate 8 pressure•4.5 bpm,55 psi.Final rate 8 pressure•6 bpm,1350 psi.Rotate 8 reciprocate.Wash down end tag hard • IL N- cement at 8964'.Drill 1 ft of cement w/10k WO8 to confirm hardness. �1r. 04:00 05:00 1.0 CBU x 1 while taking on volume in pits. V' 05:00 06:00 1.0 Test 7'casing to 4000 psl f/10 minutes.Good test.Monter lower anulus w1/le testing.200 psi prior to test.200 psi during test - 1 06:00 12:00 8.0 Continue to circulate 8 condition while working isues col Vac Trucks(Coukt not blow mud off of trucks due to bar sag plugging off trucks).Finally got most of mud off of trucks _ but MW•10.2 ppg. 12:00 20:00 8.0 Con/mw to Grcriate 8 increase MIN to 12.3 ppg in/out in wellbore&pits. 20:00 20:30 0.5 Drilling cement f/8966to 9035'(Tagged EZSV at 9035').8.5 bpm,1550 psi.70 rpm,7k tq.Able to hold 5-10k WOB w160-80 fph ROP. 20:30 23:30 3.0 Drilling EZSV f/9035'to 9038'w/10-20k WOB,80-100 rpm,7-11k tq.2-0.5 bpm.Drilled firm cement below EZSV to 9049'col 6.5 bpm,1550 psi,100 rpm,7k 10k WOB. Iftiv 4+ 23:30 00:00 0.5 CBU x 2.Cement 8 EZSV remnants at BU F1.375 maximum units of gas observed w/SU. , 44- d 41) A 7---.T:frn 1 7k TOTAL HRS 24.0 Continue to CBU x 2.Perform FIT to 16.1 ppg EMW to confirm cement integrity.Pressure applied•1200 psi.MW 12.3.TVD 8008'•18.1 ppg EMW.Continue to drill firm MORNING UPDATE cement t/9049'to 9122(5'outside 7-casing)w/8-10k WOB&45-70 fph ROP.CBU x 1.Perform FIT to 15.8 ppg EMW.Presage applied•1100 psi,MW•12 3,ND 8051' •15.8 ppg EMW.Blow doom TD.POI-If/9113'to 8728'. MUD RECORD MUD 1 Water-Based MUD 2 Water-BasedOPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 23:00 14:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) _ 77 _1-RIO UP/DOWN 16.0 ACS 2 DEPTH/TVD ON 9037 8966 2-DRILLING --- 3.5 3.5 ASRC _MUD WEIGHT/TEMP(Iblgal) 12.3/70 12.0 3-REAMING 3.0 BAKER HUGHES SOLIDS(%-Vol) 27 25 4-CORING BEAR WATCH FUNNEL VISCOSITY(a/qt) 46 49 5-CIRCULATE 8 CONDITION 17.0 32.5 BRPC 5 RHEOLOGY TEMP CFI 120 120 6-TRIPPING 2.5 23.0 CH2MHILL R600/R300 60/42 43/31 7-SERVICE RIG 1.0 DOYON(Camp) 2 R200/R100 35/28 27/22 8-DOWNTIME ---- ---- 0.5 DOYON(Security) 2 RB/R3 _ 10/9 9/8 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(cP) 18 12 10-WIRELINE SURVEYS GBR 1 YP(IbM00 fh) 24 19 11-LOGGING HALLIBURTON 5 OIL/WATER(%Vol) 73 75 12-RUN CASING/CEMENT 1.0 4.0 KAS 8 10d10m/30m GELS(Ib/100R5 11/13%6 10/11/14 13-WAIT ON CEMENT MISWACO 2 API FLUID LOSS(cc/30min) 3.1 2.6 14-NIPPLE ON UP/DOWN BOP'S 15.5 NABORS 27 HTHP FLUID LOSS(cc/30min) 15-TEST BOP'S 13.5 NORDIC 2 CAKE APT/HT(1/321 2 2 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Voq 17-PLUG BACK PRA 2 CORRECT SOLIDS(%Vol) 27 25 18-SQUEEZE CEMENT ' SCHLUMBERGER 5 OIL(%Vol) 19-FISHING OTHER 1 UNCORR WATER(%Voq ' 75 20-DIRECTIONAL WORK OIL/WATER RATIO 21-MISCELLANEOUS 2.5 ALKAL MUD(Porn) _ _ 1 0 22-MEETINGS CL WHOLE MUD(mg/L) 3,500 2,800 23-WELL CONTROL SALT(%Wt) 0 0 24-COMPLETION _ 5,0 _ LIME(Ib/bb) 25-COMPLETION(STANDBY) TOTAL 1 72 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Voq .1 .1 RIG FUEL _-- 15425 2385 13030 - ECD(ppg) -__ 14 14 CAMP FUEL FLOW IN(gpm) • 288 268 SUPPORT FUEL ---- 2840 4000 1020 5820 PUMP PRES( ) 1,500 1,500 TOTAL FUEL 18265 4000 3415 18850 ROP(FPH) POT WATER ------ -- 42 T--- 42 MBT(Ihlbbq ---- _--_ HSE pH/TEMP 9.8 9.4 SAFETY MEETINGS BEAR SIGHTINGS: No PNMT(0) .8M.8 _5/1.2 _ Conditioning Mud I Milli g Cement/FIT OTHER WILDLIFE! No li CHLORIDES(mg/L) 3,500 2800 ACCIDENTS: No SPILLS: No HARDNESS(Ca++) 360 300 WEATHER DAILY HIGH J-_ 36 J _ DAILY LOW j 23 CASINO OD WT GRADE MD ND MAX WIND/DIR E 32mph MAX WIND CHILL 7 Conductor 20 80 ' L-80 110 110 PRECIPITATION 1 VISIBILTY 1.75rn1 Surface 9-5/8 40 L-80 3089 2448 COMMENTS Snow and blowing snow.Areas of fog.Snow accumulation less than 1 Inch.Lows In the lower Intermediate 7 28 L-80 9117 8087 BHA DESCRIPTION --- ------CleanOut BNA - ----- ----- - ,_----- LENGTH __ 465 BHA WT AIR 14263 BHA WT.MUD HRS.ON JARS 3.5 ___-- _.-- ------ ROT WT. 130000 P.0 WT 180000 --- 6.0 WT. 110000 TORQUE 7000'------ • DRILLINGR T NOOKSRange Petroleum Calera WELL:Mustang 1A CONTRACTOR:INabors ; RIG: i 16-E RPT DATE: 5/16/2015 ACTIVITY:I 5/15/2015 SPUD DATE: DRILLING SUPERVISOR 1:Adam Johnston AFE2:640051 API 0:150-103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Jerry Haberthur LEASE:390680 REPORT NO_6 _ TOOLPUSHER 1:Wayne Stout FIELD:Mustang DOL:6 TOOLPUSHER2:Jeardoe/Potter ELEV:75 RKB: 34.30 LAST BOP TEST:5/12/15 _ RIG PHONE 9:907-754-9440 _ MD:9,122 TVD: 6,051 NEXT BOP TEST:5/26/2015 LAST SHOE TEST DATE: 5/11/2015 SHOE TEST: 1,200 __ 24 HR FTG:5 NRS DRLO: 12.5 CSOHD: I 108 AFE AMOUNT: $11,935,000 AFE CUM. $1,335,146 24 HOUR Perform cement integrity test(FIT)to 16.1 ppg EMW.Drill cement 9049'to 9122'(5'outside T'shoe).Perform FIT to 15.8 ppg EMW.POH.LD BHA a1.PU BHA#2.RIH to 4806'. SUMMARY ACTIVITY Continue to RIH to 9122'.Orient and achieve Hckotf away from original wellbore per D.D.Perform FIT to 15.8 ppg EMW.Continue to drill SMU 01A per program. PLANNED FROM TO HRS OPERATIONS 1� 00:00 01:00 1.0 Continue to CBU z 2 at 9049'.Perform FIT to 16.1 ppg EMW to confirm cement Integrity.Pressure applied•1200 psi.MW 12.3.TVD 6008'•18,1 ppg EMW. f` 01:00 03:30 2.5 Continue to drill firm cement f/9049'to 9122'(5'outsider caskg)w/8-10k WOB 8 45-70 fph ROP. 03:30 05:00 1.5 CBU 0 1.5 w/6.5 bpm,1575 psi.90 rpm.9ktq.PUW 180k-SOW 110k-ROW 130k 05:00 05:30 0.5 Perform FIT to 15.8 ppg EMW at casing shoe(9117').Pressure applied•1100 psi,MVV•12.3,TVD 6051'•15.8 ppg EMW. 05:30 10:30 5.0 POH 1/912'to 465'(BHA).PUW 190k-SOW 110k. 10:30 12:00 1.5 Stand back 2 stands of HWDP w/Jars.LD remainder of BHA 01. 12:00 12:30 0.5 Clear rig floor of BHA N 1 components.Clean rig floor. 12:30 13:00 0.5 Mobilze 81/A 0 2 tools to rig floor. 13:00 17:00 4.0 PJSM.PU BHA N2.61/8"bit,motor w/1.85 bend,UBHO sub,MWD,Flow Sub,3 Flex DC's,Float sub 8 XO sub to 154'.PU 15 Jts of 4"DP(push pipe).RIH w/1 std of HWDP,Jars 8 2 Jts H WDP f/derrick to 811'. 17:00 00:00 7.0 RIH f/811'while PU 4"DP f/plpeshed to 4606. TOTAL HRS 24.0 MORNING UPDATE Continue to RIH PU 4"DP f/4606 to 8500'as of 0530. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based ' OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 23:00 12:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP("F) 1-RIG UP/DOWN 16.0 ACS 2 DEPTH/TVD(ft) 9122 9122 2-DRILLING 2.5 8.0 ASRC MUD WEIGHT/TEMP(Ib/gal) 12.2/62 12.2 3-REAMING 3.0 BAKER HUGHES SOLIDS(%Vol) 28 26 4-CORING BEAR WATCH FUNNEL VISCOSITY(s/qt) 48 47 S-CIRCULATE 8 CONDITION 2.5 35.0 BRPC 5 RHEOLOGY TEMP("F) __ 120 120 8-TRIPPING 16.5 41.5 CH2MHILL R600/R300 56/37 54/37 7-SERVICE RIG -_--- 1.0 DOYON(Camp) 2 R200/R100 30/24 32/24 8-DOWNTIME 0.5 DOYON(Security) 2 R6/R3 10/9 10/B 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(cP) 19 17 10-WIRELINE SURVEYS OBR 1 YP(Ib/100 ftz 18 20 11-LOGGING HALLIBURTON 5 OIL/WATER(%Vol) 74 74 12-RUN CASING/CEMENT 0.5 4.5 KAS 8 10s/10m/30m GELS(Ib/100ft5 9/10/12 9/11/13 13-WAIT ON CEMENT MISWACO 2 API FLUID LOSS(cc/30min) 3.2 3.2 14-NIPPLE ON UP/DOWN BOP'S 15,5 NABORS 26 HTHP FLUID LOSS(cc/30min) 15-TEST BOP'S 13.5 NORDIC 2 CAKE APT/HT(1/32') 2 2 16-DRILL STEM TEST PEAK 6 UNC RET SOLIDS(%Voq _17-PLUG BACK PRA _ 2 CORRECT SOLIDS(%Vol) 26 26 18-SQUEEZE CEMENT SCHLUMBERGER 5 OIL(%Voq 19-FISHING OTHER 1 UNCORR WATER(%Vol) 74 20-DIRECTIONAL WORK OILIWATER RATIO 21-MISCELLANEOUS 2.5 ALKAL MUD(Pom) 1 0 22-MEETINGS CL WHOLE MUD(mg/l.) 3,300 2,000 23-WELL CONTROL SALT(%Wt) 0 0 24-COMPLETION 5.0 LIME(Ib/bbl) -- 25-COMPLETION(STANDBY) _ TOTAL 70 EMUL STABILITY -^r CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Voq .1 .1 RIG FUEL 13030 759 1917 11872 ECD(ppg) - CAMP FUEL - ---- --- ----- -'---- '- --- FLOW IN(DPm) SUPPORT FUEL Stip 2027 3793 PUMP PRES(psi) -TOTAL FUEL --_- 18850 759 --- 3944 15665 -_ ROP(FPH) .__ POT WATER 42 X42 MST(Ib/bbl) HSE RH/TEMP - _ 9.5 9.8 _ SAFETY MEETINGS BEAR SIGHTINGS: No Pf/Mf(0) .9/1.6 .7/1 PU BHA PU DP OTHER WILDLIFE: No CHLORIDES(mg/L) 3,300 2000 ACCIDENTS: No SPILLS: No HARDNESS(Ca++) 320 320 WEATHER DAILY HIGH I 42 I DAILY LOW I 30 CASINO OD WT GRADE MD TVD MAX WIND/DIR E35mph IMAX WIND CHILL 7 Conductor 20 60 L-80 110 110 PRECIPITATION 0 VISIBILTY .75 Surface 9-5/8 40 L-80 3069 2448 COMMENTS Cloudy.Patchy freezing drizzle In the evening.rg.Areas of fog.tows In the mid to upper 205.East Intermediate 7 28 L-80 9117 6087 BHA DESCRIPTION Bold BHA LENGTH 611.68 BHA.WT AIR 20430 BHA WT.MUD - HRS.ON JARS 15 ROT Wf------ --- - P.0 WT "--------------- --- . S.0 WT. TORQUE r _' ` DRILLING R T " &Dors Range Prtroteum Corpor WELL:Mustang 1A CONTRACTOR:Nabors 1 RIO:1 16-E RPT DATE: 5/17/2015 ACTMTYJ 5/16/2015 SPUD DATE: DRILLING SUPERVISOR 1:Adam Johnston AFE#:640051 API#:I50-103-20652-01-00 DFS: DRILLING SUPERVISOR 2:Jerry Haberihur LEASE:390680 REPORT NO:7 - TOOLPUSHER 1:Wayne Stout _ FIELD:Mustang DOL:7 TOOLPUSHER 2:Jeardoe/Potter ELEV:75 _ RKB: 34.30 LAST BOP TEST:5/12/15 _ RIO PHONE#:907-754-9440 MD:9,205 TVD: 6.099 NEXT BOP TEST:5/282015 LAST SHOE TEST DATE: 5/11/2015 SHOE TEST: 1,203 24 HR FTO:83 HRS DRLO: 113.5 CSOHD: I 108 AFE AMOUNT: $11,935,000 AFE CUM. $1,746,234 24 HOUR PUDP f/4606'to 5653'.Cont.RIH f/derick to 9122'.Slide/Time drill f/9122'to 9205.Achieved 5 deg Inc.separation from orginal wellbore.Experienced MWD failure.Troubleshoot w/no success. SUMMARY POH&change out MWD tools.RIH&continue to sidetrack away f/original wellbore.POH&PU RSS assembly.RIH.Drill production Interval per Well Plan. ACTIVITY PLANNED - FROM TO HRS OPERATIONS 00:00 02:00 2.0 Continue to RIH w/BHA#2 while PU4'DPf/4606'to 5653'.PUW 120k-SOW 95k. 02:00 03:00 1.0 Service rig.Top Drive,Blocks,Crown,Draw-Works,etc.Adjust bales on TD. 03:00 06:00 3.0 RIH w/4"DP f/derrick f/5853'to 9122'.Fill every 20 stands. 06:00 07:00 1.0 FBI pipe&break;Variation w/5.5 bpm,2470 psi.PUW 185k-SOW 112k-ROW 140k. 07:00 1 12:00 5.0 Orient tool face per DD.Sldeltime drilling to achieve Idckof If original wellborn f/9122'to 9131'w/5.5 gpm,2500 psi.WOB 2-4k. 12:00 17:00 5.0 Continue Slide/time drilling to achieve kickoff f/original wellbore f19131'to 9187'sr/5.5 Spm,2500 psi.WOB 2-4k. 17:00 17:30 0.5 Pail Into 7"casing.CBU 01 w/6 bpm,2790 psi. I 17.30 18:30 1,0 Perform FIT to 15.8 ppg EMW.Pressure applied v 1135 psi,6051'TVD,12.2 ppg MW a15.8 ppg EMW at 7'cosh;shoe. 18:30 22:00 3.5 Continue Slide/tme drilling to achieve kickoff f/original wellbore Il 9167 to 9205'w/5.5 gpm,2500 psi.WMs.OB 2-10k.AST 7.58 hos-ART 0.0 hm-ACT 7.58 hos-Jars 0 ‘L `V NOTE:Onsite Geologist verified sample taken 69205'to be KUP"C"formation. 22:00 00:00 2.0 Trouble shoot MWD(sues.No signal.Work pumps f/3 bpm to 6.5 bpm.Change Standpipe Sensor.Isolate&attempt different mud pumps separately.Attempt to surge tool while pumping at high&low flow rates.Surge tool w/no pumps.No success. NOTE:Onsite Geologists verified entered KUP"C"formation from samples taken at BU from 9205'. TOTAL HRS 24.0 MORNING UPDATE POH wet 5 stands 1/9205 to 8730'watching for swab(OK).Screw In TO Monitor well f/5 min State.Pump dry job.POH 1/8736to-3000'at 05:30. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 23:00 15:00 ACTIVITY I DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('P) 80 87 1-RIG UP/DOWN 16.0 ACS 2 DEPTH/TVD(ft) _ 9157/8077 9205/8095 2-DRILLING 13.5 19.5 ASRC -------- MUD WEIGHT/TEMP(lb/gal) 12.2/76 12.25 3-REAMING 3.0 BAKER HUGHES SOLIDS(%'Jol) 17 --- 16 r-CORING BEAR WATCH FUNNEL VISCOSITY(s/qt) ._ 42 42 5-CIRCULATE&CONDITION _ 1.5 36.5 BRPC 5 RHEOLOGY TEMP IT) 120 120 8-TRIPPING 5.0 46.5 CH2MHILL R600/R300 45132 47/35 7-SERVICE RIG 1.0 2.0 DOYON(Camp) 2 R200/R100 26/22 . 28/21 8-DOWNTIME 0.5 DOYON(Security) 2 R6/R3 11/8 8/6 9-SLIP/CUT DRILLING LINE FAIRWEATHER 1 PV(cP) 13 12 10-WIRELINE SURVEYS GBR 1 YP(Ib/100ftZ 19 23 11-LOGGING HALUBURTON 7 OIL/WATER(%Vol) 83 84 12-RUN CASING/CEMENT 1.0 5.5 KAS 6 i 105/10m/30m GELS(Ib/1001l2) 11/12/14 8/10/11 13-WAIT ON CEMENT MISWACO 3 API FLUID LOSS(cc/30min) 3.1 3.5 14-NIPPLE ON UP/DOWN BOP'S 15.5 NABORS 26 HTHP FLUID LOSS(ccl30min) _15-TEST BOP'S 13.5 NORDIC 2 CAKE APT/HT(1/32") 2 2 18-DRILL STEM TEST PEAK 7 UNC RET SOLIDS(%Vol) 17___ 17-PLUG BACK PRA 2 CORRECT SOLIDS(%Vot) 17 16 18-SQUEEZE CEMENT SCHLUMBERGER 5 OIL(%Vol) _ 19-FISHING OTHER 1 UNCORK WATER(%Vol) 84 20-DIRECTIONAL WORK 2.0 2.0 OIL/WATER RATIO 21-MISCELLANEOUS 2.5 ALKAL MUD(Pom) 1 1 22-MEETINGS CL WHOLE MUD(mg/L) 2,000 3,300 23-WELL CONTROL SALT(%Wt) 0 0 24-COMPLETION 5.0 LIME(Ib/bbl) 25_COMPLETION(STANDBY) TOTAL 74 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(MVO .25 .25 RIG FUEL 11872 9507 2900 18479 ECD(PPB) 13------ 13 CAMP FUEL -------- --- ---- - - FLOW IN(ppm) SUPPORT FUEL 3793 6224 957 9080 PUMP PRES(pd) TOTAL FUEL 15885 15731 3857 27539 ROP(FPH) ______ POT WATER 42 42 MST(Ib/bbl) HSE pH/TEMP 9.3 9.5 SAFETY MEETINGS BEAR SIGHTINGS: No Pf/Mf(0) .6/1.2 .8/1.4 Drilling Ahead I POOH OTHER WILDLIFE: No CHLORIDES(mg/L) 3,300 3300 ACCIDENTS: No SPILLS: No HARDNESS(Ca++) 480 360 WEATHER DAILY HIGH I 42 1 DAILY LOW I 35 CASING OD WT GRADE MD ND MAX WIND/DIR S 20mph MAX WIND CHILL 24 Conductor 20 60 L-80 110 110 PRECIPITATION 0 VISIBILTY 10mi Surface 95/8 40 L-80 3069 2448 COMMENTS Mostly cloudy.Isolated rain showers.Highs in the mid 405.South winds 10 to 20 mph. Intermediate 7 26 L-80 9117 8087 BHA DESCRIPTION Build BHA LENGTH 811.68 BHA.WT AIR 20430 --'BHA WT.MUD---- ---------HRS.ON JARS 28.5 -------- ROT WT. P.0 WT 190000 S.O WT. 118030 .---. TORQUE OF Tye w �7 cvA THE STATE Alaska Oil and Gas ofALASIc:A Conservation Commission -__ - 333 West Seventh Avenue OF P GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALAS Fax 907 276.7542 SCAMS ;' j = www.aogcc.alaska.gov Dan Shearer 0211 - 1 ") 4 I _ 1 ") 4 Drilling Manager Brooks Range Petroleum Corporation 510 L Street, Suite 601 Anchorage, AK 99501 Re: Southern Miluveach Field, Kuparuk River Oil Pool, Mustang 1 Sundry Number: 315-156 Dear Mr. Shearer: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P. Foerster Chair DATED this 2S day of March, 2015 Encl. RECEIVED . STATE OF 215 ALASKA OIL AND GAS CONSERVATION COMMISSION y MAR 23 Z 04 j'kg APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon L t Plug for Redrill 2( Perforate New Pool❑ Repair Well❑ Change Approved Program ❑ Suspend❑ 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 Exploratory ❑✓ Development ❑ 211-174. 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 510 L Stree,Suite 601,Anchroage,AK 99501 50-103-20652-00-00 . 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? cO 43 ZC— Mustang 1 . Will planned perforations require a spacing exception? Yes ❑ No ❑ 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 390680 • Southern Miluveach Unit-S Miluceach,Kuparuk River Oil-764150 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): 9315 • 6170 - 8975 - 5970 8975 Casing Length Size MD TVD Burst Collapse Structural Conductor 108 20" 80 80 N/A N/A Surface 3069 9-5/8" 3069 2448 5750 3090 Intermediate 9110 7" 9110 6044 7240 5410 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3-1/2" L-80 2903 Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): 12.Attachments: Description Summary of Proposal ❑✓ 13.Well Class after proposed work: Detailed Operations Program ❑✓ BOP Sketch ❑✓ Exploratory ❑ Stratigraphic❑ Development 0 • Service ❑ a, 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 3/24/2015 Oil t 1 Gas ❑ WDSPL ❑ Suspended [� 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Joseph Longo Email jlongo@brpcak.com Printed Name Dan S e/er Title Drilling Manager Signature LPhone 907-887-4995 Date 3/19/2015 COMMISSION USE ONLY — Conditions of appro al Notify Commission so that a representative may witness Sundry Number: /6—^ / Plug Integrity ❑ BOP Test E CMechanical Integrity Test ❑ Location Clearance ❑ Other: ,- yam 5: & r ` �lAS iP = 31 S's 5 Spacing Exception Required? Yes ❑ No Subsequent Form Required: ID._q p 7-- APPROVED BY Approved by: airti2 ;(.4....›L COMMISSIONER THE COMMISSION Date 3_ 2.$ -/S -)pr .304 Submit Form and Form 10-403(Revised 1 2012) Approved application is valid for 12 months from the date of approval. Attachments in Duplicate -23•I< ORIGINAL mi---- A6 3-,26-/5 RBDMS\ APR - 3 2015 RECEIVED /10,"0/NN MAR 2 0 2015 Brooks Range Petroleum AOGCC 510 L St#601, Anchorage,AK 9950 Dan Shearer Phone (907)865-3320 Email: dshearer@brpcak.com March 19, 2015 Alaska Oil and Gas Conservation Commission 333 West 7'h Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Approval, P&A Mustang 1 Dear Commissioners, Brooks Range Petroleum Corp. hereby applies for a sundry approval to P&A the onshore exploration well Mustang 1. Mustang 1 was suspended as of 2/24/2012 This well will be plugged and abandoned using Nabors 16E. The approximate date to start operations could be as early as 03/24/2015. Following the successful P&A of the Mustang 1 well it is Brooks Range Petroleum Corp.'s intention to sidetrack the well at the intermediate casing point and drill a horizontal lateral in the Kuparuk C Sand. Please find attached for the review of the Commission form 10-403 and necessary auxiliary information. If you have any questions or require further information, please contact Joseph Longo at 907-947- 4323. Sincer Dan Shearer Drilling Manager Mustang 1 P&A Procedure Brooks Range Petroleum MUSTANG 1 P&A Procedure Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Table of Contents Introduction 3 Well Information 5 Short Scope 7 Hazards and Contingencies 7 Present Casing/Tubing Program: 8 Pre-Rig Work Request: 8 Detailed Operational Procedures 9 LO Pre-rig operations: 10 L1 MIRU: Move in, Rig up: 10 1.2 De-complete operations: 10 2 Mustang 1 P&A Procedure Rev 1 Brooks Range Petroleum Mustang 1 P&A Procedure Introduction 3 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Project Outline Plug and Abandon Mustang 1. The Mustang #1 production pilot hole was drilled and logged in the winter of 2012; the oil reservoir (Kuparuk "C") was successfully evaluated with OH LWD logs and OH drill pipe conveyed logs, (via the pilot hole). The well was plugged back into the intermediate casing shoe, suspended and secured for a later sidetrack. The Mustang #1 well is incapable of flow in its current condition. The main objective of this P&A procedure is to properly abandon the well in accordance with all regulatory obligations. The drilling rig will MIRU over the Mustang 1 well. The wellhead will be nippled down and BOPs will be nippled up and tested. After pulling the tubing hanger to the floor the diesel freeze protect in the 3-1/2" tubing and annulus will be circulated out and the 3-1/2" 9.3# L80 EUE kill string will then be pulled and laid down. A clean out assembly will then be run in the hole to the top of the cement plug situated at 8975' MD. Upon reaching the TOC the well will be displace to a 12.3 ppg FLOPRO drilling fluid and the casing will be tested to 3500 psi for 30 min. The cement and EZ Drill retainer, set at 9030' MD, will be drilled to the intermediate casing shoe at 9110' MD. The FLOPRO will then be displaced with a 12.3 ppg FLOTHRU (K+ Formate) drill-in fluid. The well will then be readied for Mustang 1A sidetrack operations. 4 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Well Information Operator Brooks Range Petroleum Corporation Well Name Mustang 1 Well Type Directional Horizontal Sidetrack Development AOGCC Permit Number 211-174 API Number 50-103-20652-00-00 Sundry Number TBD Surface Location 2426 FSL 1666 FEL S2 T10N R7E UM X-465312.31,Y- 5940809.93 Zone 4 Bottom hole location 1901 FSL 634 FEL S1 T10N R7E UM X—471435.41, Y- 5945581.8, Zone 4 Map System US State Plane 1927 System Datum Mean Sea Level Geo System NAD 1927 (NADCON CONUS) Map Zone Alaska Zone 04 Area Mustang Total Depth 9,315'/6,170'TVD Rig Nabors 16E Rotary Table to Ground Level 33.1' Bottom hole static temperature 160 deg F (6200'TVD) «0"1f= 3 gc& p 5 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Current Well Information Well Name: Mustang#1 API Number: 50-103-20652-00-00 Well Type: Exploration pilot hole. Secured and suspended Current Status: The well is suspended and secured with the production interval squeezed off above and below an EZ Drill retainer set in the 7" casing @ 9030' MD. Cement top was tagged @ 8,975' MD. A 3-%2" EUE 8rd tubing kill string was run and freeze protected to 2903' MD. Inner annulus fluid is inhibited 2% KCI. BHP: 3850 psi @ 6150' TVDss (-12.03 ppg EMW) BHT: 160° F @ 6150' TVDss Mechanical Condition: Tubing: 3-1/2", 9.2#/ft., EUE 8rd tubing (2903') TD/ PBTD: 9315' MD -6170' TVD/8975' MD—5,970'TVD Kick Off Point: "'300' to 28— at 1,200'. Built to 55^'at 2,180' MD and held to casing point 3069' MD Max Dogleg (to packer): 5.13 degrees Max Angle: 55° at 2,342' MD Tbg. Spool: Vetco-Gray MB-150 MOD: 11" 5K Tbg. Hanger: Vetco-Gray 11" x 3-1/2"TCII w/3" Type "H" BPVT, w/2-3/8" npt CCL SCSSV ports, Compression Packoff Tbg. Head Adapter: Vetco-Gray: A-4-M 11" x 3-1/8" 5k w/SBMS seal bottom prep Tree: Vetco-Gray Dry hole Tree 3-1/8" BPV Profile: 3" V-G "H" Style SSSV: N/A Control line/s: None Control line bands: N/A Control Line clamps: N/A Perforations: N/A plugged and cemented w/ 15.8 ppg cement & EZ Drill Tubing Fluids: Diesel @ 2903' MD Annulus Fluids: 2% KCL brine/ diesel @ 2903' MD PPPOT— IC: N.A. 02/24/12, 3200 psi PPPOT—T: N.A. 02/24/12, 5000 psi MITOA: N.A. 02/08/12, 2000 psi CMIT T x IA: N.A. 02/08/12, 3500 psi 6 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Short Scope MIRU. NU Tree and NU BOPs. Circulate out the diesel freeze protection from the tubing and I.A. Pull the current 3-1/2" EUE 8rd tubing kill string. TIH to TOC and test casing. Clean out wellbore to intermediate casing shoe. Prepare for Mustang 1A sidetrack operations. 1. MIRU. 2. ND dry hole tree, NU BOPs and test same. k "<.r " 3. Pull tubing hanger. 4. Displace diesel freeze protect in tubing and annulus 5. RU to pull 3-1/2" kill string. Pull tubing and laydown same. 6. Make up bit and scraper. TIH to TOC. 7. Displace to 12.3 ppg FLOPRO. Pressure test casing to 3500 psi for 30 minutes. 8. Cleanout to 7" intermediate casing shoe at 9,110' MD C^^'--`- z" 9. POH with clean out assembly. 10. Prepare for Mustang 1A sidetrack operations. Hazards and Contingencies 1) Hydrogen Sulfide • Mustang-pad is not considered an H2S pad. Standard Operating Procedures for H2S precautions should be reviewed and followed at all times. 2) Well Control Pressures • Production Section max anticipated BHP: 3850 psi (12.03 ppg EMW) @ 6150' TVD • Production Section max surface pressure: 3_p,9 psi ( BHP & full gas column at 0.1 psi/ft) 3850— 6150(. 32 35 Psi „,. 3) Rig Move Issues and Shut-in Requirements • N.A. 7 Mustang 1 P&A Procedure Rev 1 • Mustang 1 P&A Procedure Brooks Range Petroleum Present Casing/Tubing Program: Csg/Tubing Wt/Ft Grade Conn Top MD Bottom TVD 20" 91.5 H-40 Welded Surface 80'/80' 9-5/8" 40 L-80 BTC Surface 3069'/2448' 7" 26 L-80 BTC-mod Surface 9110'/6044' 3-%2" Tubing 9.3 L-80 EUE 8rd Surface 2903'/2903 Pre-Rig Work Request: Check T/I/O. Check the tubing hanger lock down screws for free movement. O 1 Completely back out and check each lock down screw for breakage. Pull VR plugs. Pull BPV. PPPOT— IC. Done: ?/?/14 F 2 R/U Lubricator. F 3 Pull BPV. CMIT TxIA to 3500 psi. P/ F? Done: ?/?14 S 3 Tag plug. Gauge Ring. Depth: Done: ?/?14 O 4 Re-set and test BPV Done ?/?/14 O 6 Level the pad as needed for the rig. Done ?/?/14 8 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum Detailed Op Procedures 9 Mustang 1 P&A Procedure Rev 1 • '�/`✓ Mustang 1 P&A Procedure Brooks Range Petroleum 1.0 Pre-rig operations: 1. Ensure regulatory compliance training is complete and key personnel are fully aware of responsibilities. 2. Notify AOGCC 24 hours prior to the start of operations on Mustang 1 well 3. Liquid mud waste will be hauled to BP's grind & inject plant. Call waste facilities prior to start of operations. Additional cuttings storage tanks should be available be on location to avoid interruptions. 4. Conduct specific tour safety meetings with each crew on the potential of mud losses, well kicks and the handling of same. 5. Make sure that the Alaska Clean Seas technician is available at all times. 1.1 MIRU: Move in, Rig up: 6. Position Nabors rig#16E over the hole. Center and level rig. Rig up per SOP. 7. Notify the AOGCC 24 hours in advance for BOP test witness. 8. Gas readings will be monitored constantly for presence of gas. H2S gas is not expected. All depths will be measured from RKB. After ground level elevation has been determined and RKB to ground level measured, all elevations including ground level, will be recorded on morning reports and the IADC report. Once the BOP stack is installed, a drawing showing RKB to each preventer and wellhead equipment should be constructed and placed in the rig floor doghouse. 9. Take on 290 bbls of hot clean out fluid (2% KCI). 10. Inventory drill pipe, HW drill pipe and drill collars on location and post joint count in rig floor dog house,tool pusher office & company man office. 11. Ensure that a 21-1/4" 5000 psi X 13-5/8" 5000 psi double-studded adaptor (provided by Vetco-Gray) is on location for crossing over from the BOP stack to wellhead. Other Activities: Load and strap 470 jts. of 4" DP in pipe shed. Load and strap all HWDP and collars. 1.2 De-complete operations: 1. Check and record IA& OA pressures. 2. Pull BPV. 3. Install and test TWC to 1000 psi 10 Mustang 1 P&A Procedure Rev 1 Mustang 1 P&A Procedure Brooks Range Petroleum 4. Nipple down Vetco-Gray MB-150 MOD wellhead dry hole Tree. Have technician immediately send to town for inspection. Have VG Production tree in cellar ready to go. Confirm threads in top of tubing hanger with tree removed. 5. Nipple up 13-5/8" 5M BOP stack with ram placement (Annular,71sipe Rams in top, „It: f �' Blind Rams, Drilling Spool, 3-1/2" X 6" VBR in bottom). 6. N/U BOPE. Test BOPE per AOGCC drilling permit. 01(-- 7. le7. Test the BOPE to 250 psi low for 5 minutes and 4000 psi high for 5 minutes. Test the annular to 250 psi low for 5 minutes and 2500 psi for 5 minutes. 8. Pull TWC. Install wear bushing. 9. Pick up 1 jt 4" DP w/ XOs to tubing hanger (tubing hanger is 4-1/2" TDS on top) and screw into tubing hanger. BOLDS. Pick up to confirm pipe movement. 10. Pull the tubing hanger to the rig floor. Break off hanger. RU and circulate. (Ensure TIW and XO to 3-1/2" EUE 8rd tubing is made up and available on the rig floor) 11. Pump down tubing w/ 40 bbl "Surfactant" pill — followed by 150 bbls hot 2% KCI brine. Circulate all the way around. 12. Pull and lay down 2,878' of 3-1/2" kill string. Lay down the tubing and number all joints (no jewelry). NOTE: All equipment will need to be inspected for NORM before leaving the pad and sent to Tuboscope for inspection. 13. Fill remaining pits with 12.3 ppg FLOPRO (open well volume 345 bbls to T.O.C. @ 8975'). 14. Pick up clean out bit and scraper. RIH to T.O.C. 15. Test casing to 3500 psi for 30 min. Chart same. 16. Circulate. Displace to 12.3 ppg FLOPRO per mud engineer and program. 17. Clean out to 9,110' MD (EZ drill retainer @ 9,030' MD). 18. POOH. LD clean out BHA. 19. Clear floor of all equipment not needed for the next operation. 20. Prepare for Mustang 1A sidetrack. 11 Mustang 1 P&A Procedure Rev 1 A trAc ii vi,,.,,f-F To M osi A 1 Mustang 1 F R.R 10-40-7 AOC-tCC Gui3MITTAL As Left Diagram 1 B`RDOlcSF'+NCE ?E'MOLED H ‘\ MARCH ) 201 z < BPV 3"H Vetco Gray 4-��--\____` 3 1/2" ID 2.992"/OD 4.25" N e 9.3# EUE-8rd �.r o�c 80'ND/80'MD 20"Conductor • Tam Collar 521'MD/520'TVD 9-5/8" ' ' Diesel Freeze Protection in 7 X 9 5/8"annulus — - 2357'MD/2040'TVD 88 jts 3-1/2"EUE 8rd tubing OH 12.25" @ 2903'MDw/BPV in tubing hanger A. 2,448'ND 9 5/8" 40# 3 3,069'MD L-80 BTC � a °° o. 2903'Diesel Freeze Protection in 3-1/2"Tubing 2903'Diesel Freeze Protection in 3-1/2"x 7"Annulus OH 8.5" Suspension Plug Back Cement 15.8 ppg — TOC 8,975'MD • Tested to 3500psi,Tagged w/5k tt witnessed by(M. Herrera,AOGCC) ' f /1` 7"EZ Drill Retainer @ 9,030'MD . I 6,044'ND 7" 26# 9,110' MD L-80 BTC-M srr 6-1/8"OH @ 9315'MD/6170'ND W • n O O DJ CD (D rt w O 1 (D " r C a 3 P N a I toOZ .',.•-. I,• V. O = 1 PiIn Iv M11 \ X > Jm JTLLE_, o � ilk 3 C _. c 33 to FT:_L____I 111 -1 ' J.-1 r: , 1 to m d o$ x w x u,ywv r C so—C m l m \ aRtrR I" Eire, z.* t. — �'S�'1O��C\0 O� Z II �m��0\o n Cn 4�O "0 Icn (96:3: da oii84• o�4Ezca � ozzA ,lal *g a m z. 19k ,/li i; 1 li 1 iti lei Ir 11a W O 0 coSj [Do " .` �o f l. tcli• IEB v o OfD eaNoD o c1) c * m C 'G 7 K = r II a iU 5- 3 a rowcaw m �' -4. a z- < - - m y CD A M v r w 3 = ra 4 c d �a d CD LD . Q , . -- v 6' c o E.I m E)1 < n� CU Z Z CD X t t itt e !J /A N ktLIsA v‘ t !+ 1 m Y O 0 ,► 0 1. 0 ,' i 0 u3 = k 0,„ , ..._ ,„, . r . 8 GE Oil & Gas Drilling & Production BROOKS RANGE PETROLEUM 20" X 9-5/8" X 7" X 3-1/2" OD, 10M PSI MB-150 ASSY N/ HP 110234-10; MUSTANG WELLS 1, 2 & 3; RIG 7ES DRAWING #2 0 INIIIIH .�. I.I 1 I.1 log (36.00") 0 *' REF. gin'--•ma 3-1/8 5M RKB TO BTM OF RIG MAT IS 28'-6 5/16" A A ■;11' 11 5M 'ter I' w 18.81" (41-3/8") .� tiummo IY 11 5M (5/16") i•� UI ALLMEASUREMENTS 20" OD CSG AI I - 9-5/8" OD CSG ARE TO THE 3-1/2" OD TBG 7" OD CSG BOTTOM OF THE RIG MAT C*GE imagination at work r Sundry Application Plug for Re-drill Wells Work Flow This process is used to identify wells that are suspended for a very short time prior to being re-drilled. Those wells that are not re-drilled immediately are identified every 6 months and assigned a current status of"Suspended." Step Task espo ible 1 The initial reviewer will check to ensure that the "Plug for Redrill" box in the atricia Steve upper left corner of Form 10-403 is checked. If the "Abandon" or "Suspend" boxes are also checked, cross out that erroneous entry and initial it on both V copies of the Form 10-403 (AOGCC's and operator's copies). 2 If the "Abandon" box is checked in Box 15 (Well Status after proposed Patricia or Steve work) the initial reviewer will cross out that erroneous entry and initial it on c both copies of the Form 10-403 (AOGCC's and operator's copies). Instead, then check the "Suspended; box and initial that change. Guy or Victoria The drilling engineers will serve as quality control for steps 1 and 2. (QC) 3 When the Stat Tech receives a Form 10-403 with a check in the "Plug for Jenni Redrill" box, she will enter the Typ_Work code "IPBRD" into the History tab for the well in RBDMS. This code automatically generates a comment in the well history that states"Intent: Plug for Redrill." 4 When the Stat Tech receives any Form 10-407, she will check the History tab Jenni in RBDMS for the "Intent: Plug for Redrill" code (IPBRD). If present and there is no evidence that a subsequent re-drill has been COMPLETED, the Stat Tech will assign a status of SUSPENDED to the well bore in RBDMS no matter what status is listed on the 10-407. The Stat Tech will also change the status on the 10-407 form to SUSPENDED, and date and initial this change. If the Stat Tech does not see the "Intent: Plug for Redrill" comment or code, she will enter the status listed on the Form 10-407 into RBDMS. 5 When the Form 10-407 for the redrill is received, the Stat Tech will change Jenni the original well's status from SUSPENDED to ABANDONED. 6 The first week of every January and July, the Stat Tech and one of the Jenni Geologists will check the "Well by Type Work Outstanding" user query in Patricia or Steve RBDMS to ensure that all of the Plug for Redrill wells have been handled properly. At this same time, they will also review the list of suspended wells for accuracy. Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. QI I_ - 1 t Well History File Identifier Organizing(done) Two-sided III II111I liii ILII ❑ Rescan Needed II 111111111 (11111 RE AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner oor Quality Originals: 1 f2t_. - - V OVERSIZED (Non-Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: 414/ /s/ r}'lf Project Proofing 1111111111111M i BY: Maria Date: Is/ Scanning Preparation 9 a-70 x 30 = + I t = TOTAL PAGES a 306 ^ (Count does not include cover sheet) BY: AIMID Date: p` /s/ Production Scanning IIIIIIIIIIIIIIIIII Stage 1 Page Count from Scanned File: ali77 (Count does include cove sheet) Page Count Matches Number in Scanning Pr paration: YES NO BY: . . Date: if) p_ lit lsl 04 r Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. III IIII II 111IIII 11111 ReScanned III IIIIII IIIII II III BY: Maria Date: /s/ Comments about this file: Quality Checked III 111111 Iii I111III v) co O C c N O N co _CO O ! IOH cl ca 78 pZ, 3 0 0 C o 0 Z N a O O O47. tO m Z Z H V `��ZLO 0 0 1 pC CO I CO CO C < (� 0 0 �l lA . w J Cl J J W .� a) a 0 o > > w c o w Q Q < Qq w o f cn c LU W C rn J 0 , o p o c c p c p > } N "•C m p O O '@ W '3 0 W >. W w o— Q v «y � 0) a E m E E E m ce a (5 C Ce 0 aai E a) m J .7-• 1 co 0111X O O lL — Ca O a 0 a Q a W - E^ E 00 m p V Il W 0 0 C7 D O D ;d oa V C J 0 0 0 0 E 0 .o)a H 0 > > > O E 0 70 V cc W E w o a� w o �0 O 0.. 7 ° °' W C p N N N N N N N N N N N N N G—-CI O CL Y j o 0 0 0 0 0 0 0 0 0 0 0 0 Eiot E W co •0 N N N N N N N N N N N N N 10 3 O O O O O O O N Z 0- a) M M M M M c\n N Ce V) V V V V V V R R cr V M N Y W O 11 CC CC CCC C CCC c C V o O a 1I a� Cl.) 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E M c .a o L C r o_ O 0 N a I I CP E ' C.) 5:2 0 U I I J III, Q IIS NI 1 11N N II' /G� WN r N Z a) Cl) + < n7 I I ..1._H Q N O Q z o. o I G if) 0 E I z TB I o CO Z 0 ct 03 Q4 N o d LL z cs'-1:3 I d aO• LQ ac. I .3Z v E• rn O II fa I a a =y 0 m cc.> E E a 2 0 U QC 0 0 Release of Confidential Data Coversheet Well Name: IAA PTD: E-Set:2.t54641,z2{C,1,2-l41`j ✓ Physical data labeled with PTD, E-Set# Conf. entry: 3/ l5 t2 ✓ Import CD data to RBDMS via GeoLogs tab Flo/Z ✓ Confidential (incomplete)entry in Well Data List notes ,�t 3lll/p/l2 Import to DigLogs via E-Data tab (3o/%2- Fully logged: 3/ / Scan labeled data 2F, 4/ Apply OCR text recognition (. Hr. Save to Well Log Header Scans ❑ New"complete" entry in Well Data List notes Logged by: yy2 oizedia).7 I Guhl, Meredith D (DOA) From: Larry J. Smith [Ismith@brpcak.com] Sent: Friday, March 14, 2014 8:51 AM To: Guhl, Meredith D (DOA) Cc: Larry Vendl; Laurette Rose Subject: RE: Mustang-1 Missing data Meredith, The schedule we downloaded off your web site shows that Mustang-1 is going public on 3/24/2104. Therefore we wave confidentiality on the remaining time period involved. Thanks, Larry Smith From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Friday, March 14, 2014 8:49 AM To: Larry J. Smith Cc: Larry Vendl; Laurette Rose Subject: RE: Mustang-1 Missing data Larry, Thank you for providing the requested information. However, because the well has not been released to the public, I am concerned about confidentiality. I would prefer to have the data submitted on a CD so that it can be kept confidential and separate from all other public data until the release date. Regards, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907) 793-1235 From: Larry J. Smith [mailto:lsmith@brpcak.com] Sent: Thursday, March 13, 2014 4:53 PM To: Guhl, Meredith D (DOA) Cc: Larry Vendl; Laurette Rose Subject: Mustang-1 Missing data Meredith, Please find attached the missing data you requested on Mustang-1. Please let me know if you need anything else. Thanks, Larry J. Smith Chief Geophysicist 1 Brooks Range Petroleum 510 L Street, Suite 601 Anchorage,AK 99501 Direct: (907)865-5803 Main: (907) 339-9965 Fax: (907) 339-9961 Cell: (907)317-2329 2 Guhl, Meredith D (DOA) From: Larry J. Smith [Ismith@brpcak.com] Sent: Thursday, March 13, 2014 4:53 PM To: Guhl, Meredith D (DOA) Cc: Larry Vendl; Laurette Rose Subject: Mustang-1 Missing data Attachments: Mustang 1 Mudlog.las;IMustang 1 Final_Survey_Rpt.pdf; Mustang 1 Surveys Final.xls 02/q/4 l d4by3-- Follow Up Flag: Review Due By: Thursday, April 03, 2014 9:00 AM Flag Status: Flagged Tic-Tramffyyed atrioss 3I'- 11-LW,-DG Meredith, Please find attached the missing data you requested on Mustang-1. Please let me know if you need anything else. Thanks, Larry J. Smith Chief Geophysicist Brooks Range Petroleum 510 L Street,Suite 601 Anchorage,AK 99501 Direct: (907) 865-5803 Main: (907) 339-9965 Fax: (907) 339-9961 Cell: (907) 317-2329 1 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Thursday, March 13, 2014 9:31 AM To: 'Mwiggin@brpcak.com' Cc: Davies, Stephen F(DOA) Subject: Reporting Compliance Mustang 1 Dear Mr.Wiggin: I am completing the final compliance check for Mustang 1, PTD 211-174,API 50-103-20652-00-00,completed on 2/24/2012 and due for release to the public on 3/24/2014. As required by Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.050(d)the operator shall file with the Commission (d)... a complete digital copy of each inclination and directional survey... must be filed with the commission in a format acceptable to the commission. An ASCII or Excel version of the final definitive survey is required for Mustang 1. Please also submit a PDF version of the final definitive survey. Also a .las digital file is required for the mud log.As required by Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071 (b)(1) (1)a sepia and a reproduced copy of a complete mud log or a lithology log consisting of a detailed record and description of the sequence of strata encountered, including the kind and character of the rock and all shows of hydrocarbons;an electronic image file in a format acceptable to the commission may be substituted for the sepia. Please provide the requested final definitive survey files and a LAS mud log file by April 13, 2014. If you have any questions, please contact me. Sincerely, Meredith Guhl Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 1 Guhl, Meredith (DOA sponsored) From: Decker, Paul L (DNR) Sent: Friday, February 21, 2014 6:58 PM To: Guhl, Meredith (DOA sponsored) Subject: Re: North Tarn 1A and Mustang 1: Extended Confidentiality Application Hi Meredith, There were no requests for extended confidentiality for either well. Steve mentioned last week that he wants to create a process to be sure there are no inappropriate releases. Until we define one, please feel free to check with us just like this time. Sent from my iPhone On Feb 21, 2014, at 3:51 PM, "Guhl, Meredith (DOA sponsored)" <meredith.guhl@alaska.gov>wrote: Hello Paul, My name is Meredith and I am the new Petroleum Geology Assistant at the AOGCC. I am tasked with confirming the public release dates for North Tarn 1A(Permit 211-051) and Mustang 1 (Permit 211-174). Steve Davies prompted me to ask you if the operator has applied to DNR for extended confidentiality. Please advise if confidentiality was extended for either well. Thank you for your assistance. Regards, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission meredith.guhl@alaska.gov Direct: (907)793-1235 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Telephone: 907-279-1433 Facsimile: 907-276-7542 Email: aogcc.customer.svc@alaska.gov REQUEST FOR AOGCC RECORDS AS 40.25.100--40.25.295 I, the undersigned, request a copy of the AOGCC records listed below. I agree not to alter the contents of these records. I certify that I am neither a party nor representing or acting on behalf of a party involved in litigation in a judicial or administrative forum with the State of Alaska or public agency to which these records are relevant. Printed Name: ijeDtl-hj r chin /e-vsser Company/Firm:5O$1, b(1/4)121 D iSfcw c c Oil * Cxks Client: /UM } Address:55-01..0.-r441 Ave, &iie 110D, Orenogi je,, fl� 9Q$al Phone No: 907-?10 -013`7 Signature: 114/4. 1,,�ad. 14 U DATE: $jg i7-M3 DETAILED RECORDS REQUESTED �4u n9 1 /PTh Z.11-r7L1 f API 5a-1o3-Zoc05z-00r0 • 11-06-CLsell NJis4on11 Fie_ way( conreSpondenve. • IVa lock are needed ad- 0iis -�irn¢. 1 'V [tel Z.,. , FOR AOGCC USE ONLYzL ONLY Date Request Received: 2\,`- l74 Name of Employee Handling Request: 4),G r-o Date Records Provided: Records Transmission Method: •, 0 C.s5CA\ . �� �l�/ Control Number: Rev.06/06/2012 /#44*11"/"A*4fr‘' Brooks Range Petroleum August 27, 2012 Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue,Suite 100 Anchorage,AK 99501 RE: Mustang 2012 Site Clean Up Last week,we completed the summer clean-up of the Mustang/North Tarn drill site. Following are images of the site after the site clean-up work was completed 8/21/2012. As per Mr.Jeff Jones's request, I attempted to get GPS readings using a handheld GPS unit. I included those coordinates in red on the surveyors'conductor as built drawing which was certainly recorded with much more accurate equipment. Please let me know if you require any additional information. Thank you, Laurette Rose Special Projects Manager 510 L Street, Suite 601 Anchorage,AK 99501 (907)339-9965 (907)339-9961 fax PUitSi4,1-° l Regg, James B (DOA) Z ]( 1'74o' From: Laurette Rose [Irose@brpcak.com] ;�� Sent: Monday, August 27, 2012 3:30 PM l 145/1z-- To: 43/1zTo: Schwartz, Guy L (DOA); Regg, James B (DOA) Subject: BRPC Mustang/North Tarn Site Clean Up Attachments: AOGCC, 082712.pdf; Staging Pad Area 082712.pdf; Tundra at Mustang 082712.pdf; Wells 082712.pdf Gentlemen, Attached are images from our Mustang/North Tarn drill site following site clean-up. Please let me know if you require any additional information. Laurette Rose Special Projects Manager Direct: 907-865-5812 Mobile: 907-306-1034 Brooks Range Petroleum Corporation 510 L Street, Suite 601,Anchorage, AK 99501 Phone: 907-339-9965/ Fax: 907-339-9961 1 A Alta STGJ (U.' rl,! ...s* °v.^'vp % of Yfrt'R. ^ , vtase is- yp Y ` T t�., r, .„•..4 }-..A.,,,„.. „N,.i1., � vli« �i i•w�, _ _ :. - a iA�! t e • }..dye� „0... � ` y �t � ,a, �... • r• + '. f' ', v7” y i '±a'd 4 * L M -i a .. .y • l ,p +. • ' Ir C s 1 . .1 ( ` • J .� J i"� S C� 064.2E4 mi SrA�Ca N nA Rn 1 • • • • • - k f 7 i r • • 11111141111 ...... 4 _ • . • ,i11011 1 0 • 444, • .t` 7 1.1104r4"' A • ; t . -I' •k• •,•-t1- - r.14,111.1‘.7* . • t ' • '•• '•••"..s41fYi/101041471":•' • • • - • •-• -< • - • • • • ,. •-••* • • • 1 { �.. _ a rmy 0 0 a'�' :A i 4'y�"' ^Kc.- '= . ,s ,y. . "'a s:: . ,, may T t rb#•q.. ✓4, 'a vii t . . P f mss. 4 sr 11 1 �.. M , y ya{,�� \ i • r. t `� ,. •,� - _ `- .,v, ,, V/J/ ATS .,// `' .L_-.� s. -C":10010,,7- - 4.... .-,, ,. ,c.,,,As ,-,..•\,.. •\go •,-,... - •• . . 1.;•-•`;.-.,.. ir ii is ..1'3+ ..o . ^.',.:, • -` ` ... '• 4,• 7..i•�a�I , ` �*_ � fir. _ ��� y...►1 r 1,I, \ � .:•.," 9 �,' ; • „ j1.� Z zt'\ ` 1 . � �. y ,�_a .419 � , , c ` ' '` i ,-7C. 40, • i 4` �� 9 '` �� '� ` • y e. "r.j �'' ` Ri - , _ a_s �. y ' �. n .4 / f. , � .,.4412t� /. -...141....„,e; ••••••••• r, � r- ! � 7� \ _. ,„;•f esfia �. sk � :a� �< * l � . it r ,�1 C7 7 - `.' • tea ';a :rn/” � /: '. N., , x ` � i ` , // , .c. , _`. i „� rte✓ a, �. 'A►`„, .. I. a Ai', S •'!, *r• t 0. ti 4. • N., i. 'i. • :# • • • • , ..• r • r< r . y s .01 r F 'Ar. �1 ; . �j' ,jam �1. �, _ s,. < �. _ J lti i Po f '} :.., to 1\ i _r46 / ,; S • IY ,• "°. r . • • • 04,1 s z L e e • • • 4 �+ • �y • ti , jar _ _ • : , REV DATE BT CK APP DESCRIPTION ItV (]ATE 8Y APP DESCRIPTION 01/8/12 JFC RUN Add conductors slots-E, I & M - . 3 }9os:x,7. °C-!A fi' of (s..'135-1? `' , NOTES: 14.¢ c--, �.4. , ,s_ 1 4 ¢ 1. GRID AND GEODETIC COORDINATES ARE ASP, NAD27, ' Q , '.1 '+ ~r• -2 Ni,- `' ' °4'" ZONE 4. rt2.4,� ,,9 ,L?„ DS- U „ 1 g' 2_ COORDINATES ARE DERIVED FROM AN OPUS SOLUTION ON T''" , •'� Q 0 s `y, a c) Tsi q$�Y '-- U ' CONTROL PT L11--39-9. L. ,.^- -, 4 .i ," ,,;^*'� 3. ELEVATIONS ARE B.P.M SI_ C} �� rk�� c� i ef-2V� '.1 'rs ;I ' �`i4-f- 4. ELEVATIONS ARE DERIVED FROM 2M-SOUTH MONUMENT. s 5. ALL WELLS ARE LOCATED WITHIN PROTRACTED SECTION 2. " '{'" 'fl 4c � ri_1 TOWNSHIP 10 NORTH, RANGE 7 EAST, UMIAT MERIDIAN. THIS.,��� a' o� ��' �s ' 6 ALL DISTANCES ARE TRUE. SUR ' ,.�s- , i� ,_j-- 4 0 n 7_ SCALE FACTOR FOR THIS SITE IS 0.9999D104. s ( . -Ds + i r Q Ds-,t ic B. DATE OF SURVEY: 01/07/12, FIELD BOOK L12-01 pp. ; Ds Ds- J T R" 29-33" (Pr, t� s) '1 DS-`24.-(1) s- n t CI 4 U ,'s DS `—ifs �� i22.: li l� .. 1 0 n ,, f f'1 N VICINITY MAP ))0, is sal7 ALL LEGEND i• A 7DO. 49 AS-BUILT CONDUCTOR LOCATION (TH.s SURVEY) • EXISTING CONDUCTOR LOCATION a �e e dl1 `6 r\-- Lr r BRPC (MUSTANG) 0- ICE PAD tC Section Corner TWN, RIF 2 I 11 /2 51.. LOUNSBURY & ASSOCIATES, INC. URVLYDRS SI C1NURS Pu1.A'tRS REFER TO SHEET 2 FOR CONDUCTOR LOCATION INFORMATION 111 , / )/\/\. AREA: MODULE: XXXX UNIT: BRPC NORTH TARN Brooks Range Petroleum Corporation EXPLORATORY WELL SITE a subsidiary of AVCG. LLC CONDUCTOR AS-BUILT CADK601D755 3/11/11 DRAWING NO. NSK 6.O1-d755 (PART: 10F 2 IREY: 1 REV DATE EIY CK APP DEKRIPTIDN REv DATE yr APP DESORPTION • 1 01/8/12 JFC RDN Add conductors slots—E. I - . CONDUCTORS ARE LOCATED IN PROTRACTED SECTION 2, TION, R7E WEID ASP COORDINATES GEODETIC SECTION OFFSETS ELEVATIONS LL 'Y 'X' LATITUDE LONGITUDE F.S.L. F.E.L. O.G. ICE PAD North Tcm 5,940,772.89 465,196.38 70' 14' 57,101" 150' '5' 52.171" 2389' 1780' 59.3 71.5 1—A ++ S_0T—E 5,940,791.90 465,255.45 70' 14' 57,291" 150' 16' 50.514" 2408' 1723' 57.4 72.1 ** SLOT—I 5,940,809.93 465,312.31 70' 14' 57.471" 150' 16' 48863" 2426' 1667' 67.8 72.3 ** SLOT—IV 5,940,828.42 465.369.14 70' 14' 57.655" 150' 16" 47.213" 2445' 1610' 68.2 72.3 " INDICATES CONDUCTOR AS-BU1T THIS SURVEY. 8/21/2012 Handheld GPS readings: Slot A(North Tarn 1 / 1A): N 70° 14' 55.98", W 150° 17'03.51" Slot E: N 70° 14' 56.04", W 150° 17' 01.95" Slot I (Mustang #1): N 70° 14' 56.23", W 150° 17' 00.26" Slot M: N 70° 14' 56.48", W 150° 16' 58.63" SURVEYOR'S CERTIFICATE I dr C'Y'.e• HEREBY CERTIFY THAT I AM PROPERLY . . • REGISTERED AND LICENSED TO PRACTICE 41 491h .• LAND SURVEYING IN THE STATE OF ;..... .. .•......... ALASKA AND THAT THIS PLAT REPRESENTS $ 0 -- • A SURVEY DONE BY ME OR UNDER MY J. ROOKUS &°IF •,16 DIRECT SUPERVISION AND THAT ALL LS 6O5 "Alf DIMENSIONS AND OTHER DETAILS ARE "e' jr CORRECT AS OF JANUARY OZ 2012. 0.0 tiltii;F-ESsioriA- sp.* LOUNSBURY & ASSOCIATES. INC. SURVEYORS MINORS PLANNERS AREA: MODULE:X10a UNIT: BRPC NORTH TARN Brooks Range Petroleum Corporation EXPLORATORY WELL SITE a rogbaffthary of AVCG. LLC CONDUCTOR AS—BUILT CA00 FILE NO. DRAWING NO. PART: REV: LK6010755 1/8/12 NSK 6.01-d755 2 oF 2 • Slot M Fami • - • Slot;I - Mustang #1 r 1111101 010011. • ��kw. • Slot E -I _ .. , r Slot A - North Tarn 1 / 1A 4.• 4 .,.,a 6. �, ��� ,mgr•^, "'"��M 214 47 WELL LOG TRANSMITTAL To: State of Alaska April 3, 2012 Alaska Oil and Gas Conservation Commission Attn.: Howard Okland 333 West 7th Avenue, Suite 100 Anchorage,Alaska 99501-3539 RE: LWD Formation Evaluation Logs: Mustang 1 AK-MW-0009113843 Mustang 1 50-103-20652-00 2" MD Triple Combo Log: 1 Color Log 5" MD Triple Combo Log: 1 Color Log 2"TVD Triple Combo Log: 1 Color Log 5"TVD Triple Combo Log: 1 Color Log Digital Log Images&LAS Data: 1 CD Rom PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Sperry Drilling Attn: Buster Bryant/Ben Schulze 6900 Arctic Blvd. Anchorage,Alaska 99518 Office: 907-273-3539/907-273-3536 Fax: 907-273-3535 Buster.Bryant@halliburton.com Benjamin.Schulze@halliburton.com Date: +0/12 Signed: PAL 6/--/-44 HALLIBURTON Sperry rifling To: Alaska Oil and Gas Conversation Commission 333 W 7th Ave Suite 100 Anchorage, AK 99501 Attn: Howard Oakland From: Sperry Drilling - Alaska Attn: Robert Haverfield 6900 Arctic Blvd. Anchorage, AK 99518 907-273-3559 Office 907-273-3535 Fax Robert.Haverfield@Halliburton.com Re: Brooks Range Petroleum Corporation Well — Mustang 1A AFE # 640038 API # 50-103-20652-00-00 Rig — Nabors 7ES North Tarn, Alaska Shipment Includes: 1 End of Well Reports rpt 1 Final Data Listing on CD-ROM t 2 1 ( 7 7 1 Sets of Final Logs— each contains: • 2" Color Log —Formation Evaluation TVD • 2" Color Log — Formation Evaluation MD • 2" Color Log — Drilling Engineering MD • 2" Color Log — Gas Ratio MD • 5" Color Log — Formation Evaluation MD Received By: 0 0.v` Print Name Sign Name Date Please sign acknowledgement of receipt - email, fax, or mail back. Thank you. ��l- f ? `l Brooks Range Petroleum 510 L Street, Suite 601, Anchorage, AK 99501 Phone: 907-339-9965 Fax: 907-339-9961 Attention: Dan Seamount, Chair/Alaska Oil & Gas Conservation Commission Date: 03/14/2012 Address: 333 West 7th Ave., Suite 100 Anchorage,AK 99501 ai t- Sent By: Lawrence J. Vendl File Under: Brooks Range Petroleum—Mustang#1 Transmitting: Mustang#1 Form 407 Completion Report and accompanying documents Description: Package containing all pertinent drilling and testing information from the drilling of the Mustang#1 Exploration Test. Including: Daily Drilling Reports Weekly Drilling Reports IV-Copies of AOGCC permits associated with the well* D" f - As-Built Conductor Location P.,+ C" Completion Diagram(s) Directional Survey(s) Fluid Analyses Geologic Formation Marker Depths Production Test Data and Report Additional Comments: Please sign and Fax to 907-339-9961 Signature Date Page 1 of 2 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil❑ Gas ❑ SPLUG 0 Other 0 Abandoned 0 Suspender 'lb.Well Class: 2OAAC 25.105 20 Ac 25.110 Development ❑ Exploratory U G❑J • WINJ 0 WAG 0 WDSPL 0 No.of Completions: 0 ,- I l�'~�-Service 0 Stratigraphic Test 0 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: Brooks Range Petroleum Corporation Aband.: Susp. 912_, 211-174 3.Address: 6.Date Spudded: 13.API Number: 510 L Street,Suite 601,Anchorage,AK 99501 2/2/2012 50-103206520000 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2426 FSL 1666 FEL S2 T1ON R7E UM 2/18/2012 Mustang 1 Top of Productive Horizon: 8.KB(ft above MSL): 98' 15.Field/Pool(s): 1754 FSL 785 FEL S1 T1ON R7E UM GL(ft above MSL): 69.3' Exploratory Total Depth: 9.Plug Back Depth(MD+TVD): 1901 FSL 634 FEL S1 T1ON R7E UM 8,975'MD/5,958'ND 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+ND): 16.Property Designation: Surface: x- 465312 y- 5940809 Zone- 4 9,315'MD/6,170'TVD ADL 390680 TPI: x- 471444 y- 5940078 Zone- 4 11.SSSV Depth(MD+ND): 17.Land Use Permit: Total Depth: x- 471464 y- 5940076 Zone- 4 --NA-- LAS 27505 18.Directional Survey: Yes [No 0 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) --NA-- (ft MSL) 1287'MD/1242'ND 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/ND: Surface GR/Intermediate GR/Resistivity/Final GR/Resist,Neutron/Density 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED Conductor 94 A56 0 108' 0 108' -140 CF of Arctic Grade Surface 40 L-80 0 3,069' 0 2,448' 12.25" Cement to surface,Plug back Production 26 L-80 . 0 9,110' 0 6044' 8.5" to 8,975'MD 24.Open to production or injection? Y No C ., If Yes,list each 25. TUBING RECORD interval open(MD+ND of Top&Bottom;Perforation Size al• . . •-r: SIZE DEPTH SET(MD) PACKER SET(MD/TVD) 3-1/2"x 9.3# 2,903' / -1//r _ a ' -' 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. °^ • a at I I,, �� y ' 20\2 DEPTH INTERVAL{MD) AMOUNT AND KIND OF MATERIAL USED ,# Allilb r � mission ,� 1 x \ ,44, Gas Lians.tom �i1�3SIY' pAchafagB 27. t PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period Varied Varied Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate 28. CORE DATA None Conventional Core(s)Acquired? Yes❑ No[] Sidewall Cores Acquired? Yes❑ No CI 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. RBDMS MAR 16 2011�l M) Form 10-407 Revised 12/2009 CONTINUED ON REVERSE Cy2/.L S 1 i'/2 atiZginal only G 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD ND Well tested?® Yes E No If 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 1,287 1,242 SV-1 1,525 1,451 TOROC 6,005 4,143 ICEBURG 6,816 4,616 HRZ 8,732 5,799 KALUBIK 8,918 5,920 K-1 9,047 6,003 KUP C 9,166 6,077 LCU 9,190 6,092 Miluveach 9,305 6,163 Formation at total depth: 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: Mark Wiggin Title: Engineering and Development Manager Signature:1)12' c t1,3 Phone:ga'•Fit6s- ge,SA Date: 3/14-AO I Z 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 ND 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 Mustang#1 Formation Tops, Casing Points and Well Depths Marker Name MD TVDss Base Perm 1286 -1142 K-10 3232 -2444 Torok 6005 -4045 Iceberg 6817 -4516 H-3 7263 -4773 C-35 7940 -5186 C-30 8380 -5472 Top HRZ 8732 -5700 Top Kalubik 8918 -5821 K-1 Gamma Marker 9043 -5904 Top Kup C 9167 -5979 LCU/Base Kup C 9187 -5992 Kuparuk A3 9187 -5992 Kuparuk A2 9245 -6027 Miluveach 9305 -6064 Atr/cti 'i Tv MOsi4/G L. Mustang 1 FFR j�-��"7 ADE)CC �031-all-AL As Left Diagram i i`�cDOkS M,'NC1 TEMO 1,EH MkRCH2012 BPV 3"H Vetco Gray �- k Cl 3 1/2" ID 2.992"/OD 4.25" tn 't3 9.3# EUE-8rd rD -r�atc 80'TVD/80'MD 20"Conductor • Tam Collar 521'MD/520'TVD > 9-5/8 Diesel Freeze Protection in 7 X 9 5/8"annulus • 2357'MD/2040'TVD 88 jts 3-1/2"EUE 8rd tubing OH 12.25" @ 2903'MDw/BPV in tubing hanger All 2,448'TVD 9 5/8" 40# 3 3,069'MD L-80 BTC nig a 2903'Diesel Freeze Protection in 3-1/2"Tubing 2903'Diesel Freeze Protection in 3-1/2"x 7"Annulus OH 8.5" Suspension Plug Back Cement 15.8 ppg TOC 8,975 MD Tested to 3500psi,Tagged w/5k witnessed by(M. Herrera,AOGCC) 7"EZ Drill Retainer @ 9,030'MD • 6,044'TVD 7" 26# 9,110' MD L-80 BTC-M 6-1/8"OH @ 9315'MD/6170'TVD .LY liEV DATE BY CK APP DESCRIPTION REV 1 DATE BY 1 APP DESCRIPTION 1 01/8/12 JFC RDN Add conductors slots—E, I & M DS-3G - • n a 1-'R V l NOTES: �'- °5-" O _ die i I. -2�'!\ us , 6 DEAN 1. GRID AND GEODETIC COORDINATES ARE ASP, NAD27, ZONE 4. T124,0 (F i i,,,,,, UD 4n, �c i , NI 2. COORDINATES ARE DERIVED FROM AN OPUS SOLUTION ON �"" B p .1. s_2 �, p ,5 OI ,�a3 - CONTROL PT. L11-39-9. � ,; ��0�1 p ` �` �,-� 3. ELEVATIONS ARE B.P.M.S.L. oA c �, (AI �i� C 4. ELEVATIONS ARE DERIVED FROM 2M—SOUTH MONUMENT. n n It b 1 . a•i 5. ALL WELLS ARE LOCATED WITHIN PROTRACTED SECTION 2, ' ° 4 D.-2A - , `2C a(� 1 1 TOWNSHIP 10 NORTH, RANGE 7 EAST, UMIAT MERIDIAN. THI t � - P- z 04 0�1,� s , 6. ALL DISTANCES ARE TRUE. SUR J ,s4J — Q 7. SCALE FACTOR FOR THIS SITE IS 0.99990104. ,'°R"NT �M �Dss--zr Q DS-iL 8. DATE OF SURVEY: 01/07/12, FIELD BOOK L12-01 pp. ( � os-1 DST 6 T11 29-33. 0�.1_., '` (�P it nGN �y� ._ 6`i* IDS-2 O 0 0 s Q DS 2L ' / 9 Sroto W W lg J>pp ! 0 N P Q o / VICINITY MAP NTS P7 SCALE: LEGEND 1" = 200' O AS—BUILT CONDUCTOR LOCATION (THIS SURVEY) • EXISTING CONDUCTOR LOCATION O O O • CCg- SS Rp. \C- ' o BRPC (MUSTANG) °. ICE PAD 500 Section Corner TION, R7E —_-_. /� 2 1 V 11 12 LOUNSBURY & ASSOCIATES, INC. SURVEYORS ENGINEERS PLANNERS REFER TO SHEET 2 FOR CONDUCTOR LOCATION INFORMATION / /)/ /\ AREA: MODULE: XXXX UNIT: BRPC NORTH TARN Brooks Range Petroleum Corporation EXPLORATORY WELL SITE a subsidiary of AVCG, LLC CONDUCTOR AS—BUILT CALK601D755 3/11/11 DRAWING NO. NSK 6.01—d755 I PART: 1 OF 2 (REV: 1 4_. IRE DATE BY CK APP _DESCRIPTION REV DATE BY APP DESCRIPTION 1 01/8/12 JFC RDN Add conductors slots-E, I & M CONDUCTORS ARE LOCATED IN PROTRACTED SECTION 2, T10N, R7E ASP COORDINATES GEODETIC SECTION OFFSETS ELEVATIONS WELL ID 'Y' 'X' LATITUDE LONGITUDE F.S.L. F.E.L. O.G. ICE PAO North Torn 5,940,772.89 465,198.38 70' 14' 57.101" 150' 16' 52.171" 2389' 1780' 69.3 71.5 1-A ** SLOT-E 5,940,791.90 465,255.45 70' 14' 57.291" 150' 16' 50.514" 2408' 1723' 67.4 72.1 ** SLOT-I 5,940,809.93 465,312.31 70' 14' 57.471" 150' 16' 48.863" 2426' 1667' 67.8 72.3 ** SLOT-M 5,940,828.42 465,369.14 70' 14' 57.655" 150' 16" 47.213" 2445' 1610' 68.2 72.3 ** INDICATES CONDUCTOR AS—BUILT THIS SURVEY. . �� 44 444 SURVEYOR'S CERTIFICATE '�•�P ......... . .. ..�' ;��♦ I HEREBY CERTIFY THAT / AM PROPERLY 49th %\ ♦♦1 REGISTERED AND LICENSED TO PRACTICE M LAND SURVEYING IN THE STATE OF • ALASKA AND THAT THIS PLAT REPRESENTS A .. 0 A SURVEY DONE BY ME OR UNDER MY ♦ VI : ..AN J. ROOKUS :/,as DIRECT SUPERVISION AND THAT ALL e♦♦�� 1t; LS 80 5 ° DIMENSIONS AND OTHER DETAILS ARE .4% pR•Ji i�4..c' CORRECT AS OF JANUARY 07, 2012. .1 0 N0 47 f 1,"Itivaw1,'.... 0LOUNSBURY . & ASSOCIATES, INC. SURVEYORS ENGINEERS PLANNERS nlI AREA: MODULE:XXXX UNIT: // )/\/\\ BRPC NORTH TARN Brooks Range Petroleum Corporation EXPLORATORY WELL SITE a subsidiary of AVCG, LLC CONDUCTOR AS—BUILT CALK601D755 1/8/12 DRAWING NO. NSK 6.01-d755 (PART: 2 OF 2 IREV: 1 t • DRILLING REPORT Brooks Range Petroleum.Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Dolling I RIG: 7ES • RPT DATE:January 31,2012 SPUD DATE: DRILLING SUPERVISOR 1:Bill Bixby AFE#:640038 I API#:150.103-20652-00-00 DFS: DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:2 TOOLPUSHER 1:BIH Perry FIELD: DOL:1 TOOLPUSHER 2:Gary Hoffman • _ ELEV: RKB: LAST BOP TEST: RIG PHONE It:907-865-9900 MD:108 TVD: 108 NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: • 24 HR FTG: HRS DRLG: CSGHD: I AFE AMOUNT: $13,504600 AFE CUM. $2,637,963 24 HOUR Install Berms around rig and Pits,NU diverter spool,Vetco Tech Install VG-LOC Gasket&test to 1200 psi.15-min.Cont to Berm,Take on H2O,N/U diverter line,Load 5"DP in SUMMARY shed,Function test Annular, ACTIVITY Repair door to Pipe shed,Strap 81-Jts.5"DP,PIU and Rack back same,MN Bha.Spud 1225"Surf Hole PLANNED FROM TO HRS OPERATIONS 0:00 . 5:00 5.0 Install berms around ng and pits,,N/U Diverter spool 5:00 6:30 1.5 Vetco grey tech install VG-Loc seals on starter head and 1200 psi,15-min,RILDS.Continue Berm around rig 6:30 9:00 2.5 Take on Water in pits,Accept ng at 07:30 hrs.01/31/2012 9:00 12:00 3.0 Set MWD and Mud Loggers Tech offices,Test Sierra gas monitor system 12:00 20:00 8.0 Cont N/U Diverter line N/U Surface riser&Bell nipple,Finish Berming camp&rig,C/O Fan in PFC 20:00 0:00 4.0 R/U,Mix Spud mud,load pipeshed with 5"ddlpipe,Function test annular and Knife valve TOTAL HRS 24.0 • MORNING Repair Door to Pipe shed,Rig up MWD,&Mudloggers,Strap 5"Drillpipe, UPDATE MUD RECORD MUD 1 MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP("F) RIG UP/DOWN 24.0 44.0 BRPC 4 DEPTH/TVD(ft) DRILLING ACS 2 • MUD WEIGHT/TEMP(lb/gal) REAMING ASRC SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) CIRCULATE&CONDITION BEACON 2 • RHEOLOGY TEMP("F) TRIPPING CH2MHILL R600/R300 SERVICE RIG HALLIBURTON 8 R200/R100 DOWNTIME MISWACO 2 R6/R3 I I I I I SLIP/CUT DRILLING LINE NABORS 28 PV(cP) WIRELINE SURVEYS PEAK 7 YP(Ib/100 ft2t LOGGING SCHLUMBERGER OIL/WATER(%Vo1), RUN CASING/CEMENT SOLSTEN XP 10s/10m/30m GELS(Ib/100ftt) I/ // WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) NIPPLE ON UP/DOWN BOP's BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) TEST BOP's CATERING 11 CAKE APT/HT(1/32") DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) I PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) MEETINGS CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION LIME(lb/6bl) COMPLETION(STANDBY) TOTAL 69 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Iblbbl) HSE • pH/TEMP SAFETY MEETINGS BEAR SIGHTINGS: None Reported • Pf/Mf(0) Working in cold weather I Loading Tubulate OTHER WILDLIFE: None Reported CHLORIDES(mg/L) ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca..) WEATHER DAILY HIGH I -45 I DAILY LOW I -45 CASING I OD WT GRADE MD TVD MAX W INDIDIR 0 MAX WIND CHILL Conductor 20 94 A56 108 108 PRECIPITATION 0 VISIBILTY 8 miles COMMENTS BHA DESCRIPTION LENGTH BHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BR DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 1 1225 Hughes M6 Tooth VM-3 5204493 1014,3016 108 BIT NO INNER I OUTERI DULL I LOC I I SEAL I I GAUGE I I OTHER' IRP HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HI-IP 1 EMSCO F-1000 5.500 10.000 2 EMSCO F-1000 5.500 10.000 } /N",/‘'‘ DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Dolling I RIG:1 7ES RPT DATE:February 1,2012 SPUD DATE: DRILLING SUPERVISOR 1:Bill Easy AFE#:640038 I API 11:150-103-20652-00-00 DFS: DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:3 TOOLPUSHER 1:BR Perry k FIELD: ELEV: RKB: I DOL:2 TOOLPUSHER 2:Brian Tiedman LAST BOP TEST: RIG PHONE 8:907-865-9900 MD: TVD: NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG: HRS DRLG: I CSGHD:I AFE AMOUNT: $13,504,000 AFE CUM. I $2,965,777 Load 5"DP in Shed,Repair Pipe shed doors,Load and Strap 5"DP,Diverter and Accumulator 8 Monitors,wittnes by Lew Grimakli,Instat 1-sect.of Diverter Line,P/U and std 24 HOUR N SUMMARY back 5"'DP,MBha, ACTIVITY Wait on Weather and bad 9-5/8"csg in Pipe shed and Drift and Strap,Spud well. PLANNED FROM TO HRS OPERATIONSy' 0:00 1:30 1.5 Load 5"Drill pipe in Shed . J�(_.�.'fl 1:30 7:30 6.0 Welder repair Pipe Shed Door,Mechanic repair open and close cylinders ; L 7:30 9:00 1.5 Load&Strap 5"Drillpipe J$ " 9:00 10:30 1.5 Function Diverter,Test Accumulator,Test Sierra gas monitor,Test pit Monitors,Lew Grimaldi W/AOGC Witness tests �, 10:30 14:00 3.5 Put Extension onto Diverter Line 14:00 14:30 0.5 PJSM on Picking up and standing back 5"Drillpipe 14:30 21:30 7.0 Pick up 81 jts 5"Drilipipe and 17 Jts 5"HWDP and Rack in Derrick 21:30 22:30 1.0 PJSM:W/Sperry on Picking up BHA 22:30 0:00 1.5 Pick up Directional BHA TOTAL HRS 24.0 MORNING Wait on Weather and load 9-5/8"into pipe shed.Drift and Strap UPDATE MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY - - PERSONNEL ON SITE TIME 23:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP CF) N/A RIG UP/DOWN 44.0 BRPC 4 DEPTH/TVD(ft) DRILLING ACS 2 MUD WEIGHT/TEMP(lb/gal) 8.8@50 REAMING ASRC SOLIDS(%Vd) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 79 CIRCULATE&CONDITION BEACON 2 I RHEOLOGY TEMPCF) TRIPPING 11.5 11.5 CH2MHILL R600/R300 81/56 SERVICE RIG HALLIBURTON 8 R200/R100 46/32 DOWNTIME 6.0 6.0 MISWACO 2 R6/R3 12/12 SLIP/CUT DRILLING LINE NABORS 28 PV(cP) 25 WIRELINE SURVEYS PEAK 8 YP(6/100 tla) 31 LOGGING SCHLUMBERGER OBJWATER(%Vol) RUN CASING/CEMENT SOLSTEN XP 10sMOm/30m GELS(Ib/100110 II /I WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) NIPPLE ON UP/DOWN BOP's 3.5 3,5 BEAR WATCH • 2 HTHP FLUID LOSS(cc/30min) TEST BOP'S 1,5 1.5 CATERING 11 CAKE APT/HT(1/3?) DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK . OIL/WATER RATIO MISCELLANEOUS • ALKAL MUD(Porn) MEETINGS 1.5_ 1.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION LIME(b/bbl) COMPLETION(STANDBY) TOTAL 70 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE pH/TEMP 9.3@50 SAFETY MEETINGS BEAR SIGHTINGS: None Reported PT/MT(0) PIU Drill Pipe Making up BHA OTHER WILDLIFE: None Reported CHLORIDES(mg/L) ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca..) WEATHER DAILY HIGH I -54 L DAILY LOW I -49 CASING OD WT GRADE MD ND MAX WIND/DIR 0 MAX WIND CHILL -57 Conductor 20 94 A56 108 108 PRECIPITATION 0 VISIBILTY 3 COMMENTS BHA DESCRIPTION I LENGTH BHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BIT DATA I .N NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANNEL) G 1 1225 Hughes Mill Tooth VM-3 5204493 1014,3x16 108 I BIT NO. INNER I OUTER DULL I LOG I I SEAL I I GAUGE I I OTHER I IRP I HYDRAULICS DATA _ PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP • 1 EMSCO F-1000 5.500 10.000 • 2 EMSCO F-1000 5.500 10.000 J l /‘',A' DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling RIG:I RPT DATE:February 2,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Boll Bixby AFE#:840038 I API 1:150-103-20652-00.00 OFR: DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:4 TOOLPUSHER 1:Biff Perry FIELD: DOL:3 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: LAST BOP TEST: RIG PHONE t 907-865-9900 MD:810 TVD: 803 NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG:810 HRS DRLG: I CSGHD:I AFE AMOUNT: $13,504,000 AFE CUM. 13,305,70E 24 HOUR wait on weather.load csg.dir drill 11108'to SUMMARY ACTIVITY Continue to dir drill 12.25"hole to Td PLANNED FROM TO HRS OPERATIONS 0.00 1:00 1.0 M/U BHA to 65' 1:00 8:00 7.0 Wait on Weather and Load 9-5/8"Csg in Pipe shed,Diverter&Evac.DNI 800 10:00 2.0 Pre-Spud meeting,fill hole and stack 10:00 11:00 1.0 Dir Drlg F/108'to 191',10K,157 rpm,457 gpm.890 psi,ART=.69,AST=O Jars=O hrs 11:00 11:30 0.5 POH F/191'to 98'blow down top drive ' 11:30 12:00 0.5 PN BHA,Flex collars,Jars,F/98'10 190' 12:00 19:30 7.5 Dir Drill 12.25"hole F/191'to 712,30K wab,550 gpm,1500 psi,RPM 5010,143 mtr. 19:30 20:00 0.5 Put and stand back 1-stand of HW DP due to galled box 20:00 20:30 0.5 Dir Drill 12.25"Hole F/712'to 715',wob 20k,550 gpm,1500psi,rpm 5010,mtr 143, 20:30 21:00 0.5 POH,1-s10,work on MWD 21:00 21:30 0.5 Repair MWD,Trouble with IP Address being connected to another computer 21:30 22:00 0.5 TIH 1-Std.b 715' 22:00 22:30 0.5 Dir Drill 1225"Hole F/715'to 760',W OB 25K,550 gpm,1480 psi.RPM 50 TD,143 MTR.Diff Psi.1480 on 1355 psi off. 22:30 23:00 0.5 Drag chain trunk froze.Thaw out 23,00 0:00 1.0 Dir DM 12.25"hole 8760'to 810'wob=25k,gpm=550,rpm-0td,143 nrtr,1480 psi on btm,1355 psi oft TOTAL HRS 24.0 MORNING Drilling slide at 1300';will drill to-1500 CBU and short trip. UPDATE MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 2130 ACTNITY DAILY CUM HRS COMPANY NUMBER I FLOWLINE TEMP(°F) 54 RIG UP/DOWN 7.0 51.0 BRPC 4 j DEPTH/IVO(ft) 712 DRILLING 10.5 10.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 9/54 REAMING ASRC SOLIDS(%Vol) 2 CORING BAKER HUGHES FUNNEL VISCOSITY(slat) 295 CIRCULATE 8 CONDITION BEACON 2 RHEOLOGY TEMPrF) 54 TRIPPING 3.5 15,0 CH2MHILL R600/R300 124/91 SERVICE RIG 0.5 0.5 HALLIBURTON 8 R200IR100 77/61 DOWNTIME 0.5 6.5 MISWACO 2 R6IR3 37/35 SLIP/CUT DRILLING LINE NABORS 28 PV OP) 33 WIRELINE SURVEYS PEAK 7 YP(IN1001t�1 58 LOGGING SCHLUMBERGER OIL/WATER(%Vol) 98 RUN CASING/CEMENT SOLSTEN XP 10s/10m/30m GELS 96/10010 42/66/72 /I WAR ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 82 NIPPLE ON UP/DOWN BOP's 3.5 BEAR WATCH 2 i HTHP FLUID LOSS(cc/30min) TEST BOP's 1.6 CATERING 11 CAKE APT/HT(1/32") 1 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING _ UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) 0.35 MEETINGS 2.0 3.5 CL WHOLE MUD(rnglL) WELL CONTROL SALT(%Wt) COMPLETION LIME(Ib/bbl( COMPLETION(STANDBY) TOTAL 69 • EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL • FLOW IN(gpm) 550 SUPPORT FUEL • PUMP PRES(psi) 887 TOTAL FUEL ROP(FPH) POT WATER MST(Iblbbl) HSE pH/TEMP 9.3654 SAFETY MEETINGS BEAR SIGHTINGS: none reported Pf1Mf(0) 0.5/0.6 dig wlconn tr derrick I wkg around sup.suck OTHER WILDLIFE: none reported CHLORIDES(ng/L) 800 ACCIDENTS: none reported SPILLS: none reported HARDNESS(Ca•+) WEATHER DAILY HIGH I -18 I DAILY LOW I -31 CASING OD WT GRADE MD TVD MAXWIND/DIR 21mph NNE MAX WIND CHILL -58 Conductor 20 94 A58 108 108 PRECIPITATION VISIBILTY COMMENTS BHA DESCRIPTION • LENGTH BHA.WT AIR ' BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOO RPM ROP DP(ANNNEL) DC(ANN.NEL) 1 1225 Hughes Mill Tooth VM-3 5204493 1014,3z16 108 BIT NO. INNER I OUTER! DULL I LOC I I SEAL I I GAUGE I I OTHER I IRP HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BR HHP PUMP HHP t EMSCO F-1000 5.500 10.000 2 EMSCO F-1000 5.500 10.000 SURVEY DATA MD ANGLE AZIMUTH TVD WS I COORDINATES I EM! V.SECTION DLS 859 15.62 104.62 849 -27.59 _ 88.92 -27.6 _ 1.3 ----- 953 16.89 103.29 940 -33.96 114.82 -34.0 1.4 1,049 22.59 107.08 1,030 -42.55 145.72 -42.6 6.1 1,142 26.91 108.50 1,115 -54.51 182.90 -54.5 4.7 • /‘',/NN DRILLING REPORT Brooks Range Petroleum Corpora:.;., WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7LS RPT DATE:February 3,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:6#Baby _ AFE#:640038 I API .I50-103-20652-00-00 DFS:1 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:5 TOOLPUSHER 1:Bio Perry FIELD: DOL:4 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST: RIO PHONE it 907-865-9900 MD:2,510 TVD: 2,131 NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG:1,700 HRS DRLG: I CSOHD: I AFE AMOUNT: $13,504,000 AFE CUM. $3,698,11 Dir drill 12.25"hole F/810'MD to 1566',Circ&Cond,Wiper trip to 620'MD,Drill 12.25"hole,F/1566'to 2510' 24 HOUR SUMMARY Cont.Dnlling to 3082'CBU.Wiper trip.Run 8 Cmt 9-5/8"Csg ACTIVITY PLANNED FROM TO NRS OPERATIONS 0:00 9:00 9.0 Dir Drill 12.25"hate F/810'to 1566',wob 20K,gpm 550,1700 psi,M rpm 60,mtr,143,est=2.59 hrs,art=3.7 hrs, 9:00 10:00 1.0 CBU 1-1/2 times,gpm 500,rpm 30, -._..._ 10:00 12:30 2.5 Back ream out of hole F/1566'to 620', 12:30 14:00 1.5 TIH F/620'to 1566',Take 25K wt,344 gym,@ 910'.wash/push cuttings or wood from 910'to 970'w/oriented HS,344 gpm,680 ps: 14:00 14:30 0.5 TIH l01471',wash(/1471'to 1566'No fill on bottom 14:30 22:00 7.5 Dir Drill 12.25"Hole F/1566'to 2318',wob 15-25K,560 gpm,rpm 80 td,psi off 1740,spm 190,TQ on 5-7K,TO off 1-26,UWT 88,DWT 65,RWT 61 22:00 0:00 2.0 Drilling 2318'-2510',TVD 2131'WOB 20K,200 spm,600 gpm,psi on 2270,psi 412140,TQ on 8.5k TO off 4.4k,UWT 90K,SOW 76K,RWT 75K,RPM%i. TOTAL HRS 24.0 MORNING Dir Drilling 12.25"hole @ 3050' UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE • TIME 2260 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP("F) 62 RIG UP/DOWN 51.0 BRPC 4 DEPTH/TVD(R) 2330 DRILLING 18.5 29.0 ACS - i 2 MUD WEIGHT/TEMP(IB/gel) 9.5©58 REAMING ASRC SOLIDS(%Vol) 4 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 312 CIRCULATE&CONDITION 1.0 1.0 BEACON 2 RHEOLOGY TEMP("F) 58 TRIPPING 4.6 19.5 CH2MHILL ' R600IR300 189/133 SERVICE RIG 0.5 HALLIBURTON 8 R200/R100 110/179 DOWNTIME 6.5 MISWACO 2 R6/R3 I I I .I I 33/29 _ SLIP/CUT DRILLING LINE NABORS 28 PV(cP) 56 WIRELINE SURVEYS PEAK 7 YP(Ib/1006m 77 - LOGGING - SCHLUMBERGER OILNVATER(%Vol) 96 RUN CASING/CEMENT SOLSTEN XP 10s/10m/30m GELS(I1#100R2) 47/70/89 /I WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 6 NIPPLE ON UP/DOWN BOP% 3.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) TEST BOP's 1.5 CATERING 11 CAKE APT/HT(1/32') 2 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) I PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Pom) 0.25 MEETINGS 3.5 CL WHOLE MUD(mg/L) 2000 WELL CONTROL SALT(%Wt) COMPLETION LIME(lb/bbl) COMPLETION(STANDBY) TOTAL 69 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%V4) 0.25 RIG FUEL ECD(ppg) CAW FUEL FLOW IN(gpm) 600 SUPPORT FUEL PUMP PRES(psi) 2275 TOTAL FUEL ROP(FPH) 134 POT WATER MBT(lb/bbl) HSE pHfTEMP 9.1/58 SAFETY MEETINGS BEAR SIGHTINGS: None Reported Pf/Mf(0) 0.25/0.5 Tripping I Mkg coons.F/derrick OTHER WILDLIFE: None Reported CHLORIDES(mg/L) 2000 ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca++)_ 60 WEATHER DAILY HIGH I -26 I DAILY LOW I _33_ CASINO OD WY GRADE MD TVD MAX WIND/DIR ENE 18.4 mph MAX WIND CHILL -45 Conductor 94 A56 108 108 PRECIPITATION VISIBILTY 3 miles COMMENTS BHA DESCRIPTION BHA#1 LENGTH 190.12 BHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT 5.0 WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP OP(ANN.NEL) DC(ANN.NEL) 1 12.25 Hughes MIlI Tooth VM-3 5204493 1014,3x16 108 BIT NO. INNER I OUTER! DULL I LOC I I SEAL I I GAUGE I I OTHER I IRP HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.500 10.000 103 2135 298 95 2 EMSCO F-1000 5.500 10.000 103 2135 298 95 PRESSURE PARAMETERS PORE PRESSURE:! REDUCED PUMP RATES GAS BG: 165 MAX: 214 REMARKS: PUMP SPM PRESS DEPTH SNOWS CONN: 214 CL: #1 103 2,135 2,500 TRIP: FORMATION: #2 103 2,135 2,500 SURVEY DATA _ MD ANGLE AZIMUTH TVD WS I COORDINATES I E/W V.SECTION DLS 2,464 55.82 101.25 2.052 -254.22 995.74 -254.2 29 2.559 56.23 100.99 2,158 -269.46 1073.25 -269.5 0.5 2,654 55.77 104.59 2,211 -286.77 1149.54 288.8 3.2 2,748 55.55 104.92 2,284 -306.99 1225.17 -306.7 0.4 / DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG:I 7ES RPT DATE:February 4,2012 SPUD DATE:212/12 DRILLWG SUPERVISOR 1:Bill Bixby ___ AFE ft:640038 I API 5:150-103.20652.00-00 DFS:2 DRILLING SUPERVISOR 2:Larry Myers ___ LEASE:390680 REPORT NO:6 TOOLPUSHER 1:Bill Perry FIELD: DOL:5 TOOLPUSHER 2:Brian Tiedman _ ELEV: RKB: 29 LAST BOP TEST: RIG PHONE S:907-865-9900 MD:3,082 TVD: 2,435 NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG:572 HRS DRLG: I7 CSOHD: I AFE AMOUNT: $13,504,000 AFE CUM. $4,120,602 24 HOUR Drill F2510'to 3082'.Circ&Cond',Backream F/2882'to 1471',TIH to 3082'.Circ,TOH on Elevators,L/D BHa,RN Csg tools,Run 9-5/8"Csg SUMMARY ACTIVITY Run 9-5/8"csg.circ and condition mud,R/U Hes Cmt csg.check floats,Back out landing jt,N/D Diverter,N/U wellhead,Install Bop's&Test PLANNED FROM TO HRS OPERATIONS 0:00 7:00 7.0 Dir Drill 12.25"Hole F/2510'l0 3082'.WOB=30K,RPM 75 TD,MIR 155,814 gpm,PSI On=2440,OK=2290. 7:00 8:30 1.5 Circ&Recip&Rotate Set 1-Std back per 1.5 BUS.3082'to 2882'arc total of 16000 strks,0 600 gpm. 8:30 13:30 5.0 TOH,Backreaming hole F/2882'to 1471',530 gpm,40 rpm,3K tq.82K up,76K ON, 13:30 14:30 1.0 TIH,to 3082'No problems 14:30 15:30 1.0 Ciro,Rotate and Recip,Circ 2-BU,Stand back A stand every 30 min,600 gpm,40 rpm, 15:30 19:30 4.0 TOH,Wellbore Swab F/1070'to 880,20K over normal P/U,Top of slide area,POH to BHA,Monitor Well 5-Min.Static 19:30 20:00 0.5 Service rig.&PJSM 20:00 0:00 4.0 UD Dir Bha,clean and clear rig floor. TOTAL HRS 24.0 MORNING Rih with 9-5/8'csg.filling every joint.16 joints ran to 647'0 0600. UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SHE TIME 22:00 08:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 68 RIG UP/DOWN 51.0 BRPC 4 DEPTH/'VD(ft) 3082 3082 DRILLING 29.0 ACS 2 MUD WEIGHT/TEMP(lb/gal) 9.6068 9.6067 REAMING ASRC SOLIDS(%Vol) 5 4.5 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 243 295 CIRCULATE&CONDITION 2.5 3.5 BEACON 2 RHEOLOGY TEMP(°F) 68 87 TRIPPING 10.0 29.5 CH2MHILL / R800/R300 167/120 184/132 SERVICE RIG 0.5 1.0 HALLIBURTON 8 R200/R100 98/76 109/83 DOWNTIME 6.5 MISWACO 2 ���/// R6/R3 37/34 33 SLIP/CUT DRILLING LINE NABORS 28 PV(cP) 47 52 WIRELINE SURVEYS PEAK 8 YP(Ib/100 ft�) 73 80 LOGGING SCHLUMBERGER OILNVATER(%Vol) 95 95.5 RUN CASING/CEMENT SOLSTEN XP 10s/10m/30m GELS(1b/103fe 38/53/86 34/68/85 WAIT ON CEMENT WEATHERFORD API FLUID LOSS(W30min) 5.4 5.2 NIPPLE ON UP/DOWN BOP's 3.5 BEAR WATCH 3 HTHP FLUID LOSS(cc/30min) TEST BOPs 1.5 CATERING 11 CAKE APT/HT(1/32') 2 2 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) PLUG BACK CORRECT SOLIDS(%Vd) SQUEEZE CEMENT OIL(%Vol) I- FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) 0.25 MEETINGS 3.5 CL WHOLE MUD(mg/L) 1000 WELL CONTROL SALT(%WI) COMPLETION 4.0 4.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 71 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 1.75 1.5 RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) 600 SUPPORT FUEL PUMP PRES(psi) 2200 TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) 24 HSE pH/TEMP 9.2068 9.259 SAFETY MEETINGS BEAR SIGHTINGS: None Reported Pf/Mf(0) 0.3/0.4 .251.4 Back Reaming I Running Csg. OTHER WILDLIFE: Nose Reported CHLORIDES(mg,tL) 1000 1100 ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca++) 80 80 WEATHER DAILY HIGH I 20 I DAILY LOW I -30 CASING OD WT GRADE MD TVD MAX W INDIDIR MAX WINDCHILL Conductor 20 94 A58 108 108 PRECIPITATION COMMENTS DESCRIPTION VISIBILTY Very Warm BHA BHA 61 LENGTH 190.12 SHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANNNEL) 1 12.25 Hughes Mill Tooth VM-3 5204493 1x14,306 108 3,082 2,974 24.4 20 143 122 122 BIT NO. 1 INNER I 1 OUTER/ 1 DULL WT I LOC I A I SEAL I E I GAUGE I 1 I OTHER I NO IRP TD HYDRAULICS DATA I PUMP MODELMAKE DN LINER J 1 STK SPM PSI GPM GPS EFF%T ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO 2 EMSCO F-1000 5.500 10.000 • PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 103 2,135 2,500 TRIP: FORMATION: #2 103 2,135 2,500 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I Ern V.SECTION DLS 2.842 55.18 104.43 2,318 -326.18 1299.62 -326.2 0.6 2,935 _ 55.02 102.06 2,371 -360.94 1374.16 -343.7 2.1 3.030 54.83 10348 2,426 -360.94 1450.1 -360.9 1.2 • / '. DRILLING REPORT &rooks Rana,.PYtrweum Corporation WELL:Mustang 81 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 5,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Blit Bixby AFE•:640038 I API 8:I50-103-20652-00-00 DFS:3 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:7 TOOLPUSHER 1:Biff Perry FIELD: DOL:6 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST: RIG PHONE N:907-865-9900 MD:3,082 ND: 2,426 NEXT BOP TEST: LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG: HRS DRLG: I CSOHD: I AFE AMOUNT:I $13,504,000 l AFE CUM. $4,483,375 24 HOUR Rig up csg tools,Run 9-5/8"csg,Ciro and Condition,Cmt csg,R/D csg tools,N/D Landing jt,NID Diverter SUMMARY ACTIVITY Cont.NID Diverter,Install Vetco grey Wellhead\,N/U BOP's.Test BOP's,PN 5'Dnllpipe Rackback in Derrick, PLANNED FROM TO HRS OPERATIONS 0:00 130 1.5 MIU Vetco Grey Hanger on Landing Jt and Drift run to Landing ring in Conductor.LID Same 1:30 12:000 2.5 Rig 75p Jts.9 5/8 4081running BT ools 4:00 8.0 Run Jls.9-518"40M L80 BTC,Avg TO 9500 FT/LBS,Wash Last Jt to Bottom 3069'.land on Vetco Grey Hanger, ___ C/4/18/oft:{0.40fra 12:00 17:00 5.0 Ciro and Cond mud for cementing 17:00 21:00 4.0 PJSM,Test tines to 3000 psi Pump 10 bbl H20,Pump 60 bbl dual spacer 10.0 ppg,480 bol(600 sxs)Type L-Perrnatrost 10.9 oat 46.2 bbl 1220 sxsl Premum r_ 15.8 ppg,Put in Place W/225 bbl Gel Mud,CIP@ 2100 Hrs.01/05/2012,Bump Plug F/800 psi.to 1500 psi,hole 5-min.Release floats Held.190 bbl cm �p 21:00 0:00 3.0 Rig Down casing running tools back out landing Jt.and remove from floor t� 4q LI TOTAL HRS 24.0 D MORNING NM Diverter UPDATE MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 64 RIG UP/DOWN 3.0 54.0 BRPC 4 DEPTH/ND(ft) 3082 DRILLING 29.0 ACS 2 MUD WEIGHT/TEMP(Ib/gal) 9.5@65 REAMING ASRC SOLIDS(%Vol) 8 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 70 CIRCULATE&CONDITION 5.0 8.5 BEACON 2 RHEOLOGY TEMP(°F) 65 TRIPPING 29.5 CH2MHILL R600/R300 102/68 SERVICE RIG 1.0 HALLIBURTON 11 R200/R100 51/38 DOWNTIME 6.5 MISWACO 2 R6/R3 12/10 SLIP/CUT DRILLING LINE NABORS 28 PV(cP) 34 WIRELINE SURVEYS PEAK 8 YP$b/100 ft2I 34 LOGGING SCHLUMBERGER OIL/WATER(%Vol) RUN CASING/CEMENT 16.0 16.0 SOLSTEN XP 10s/10m/30m GELS(1)/100R�1 12/16/21 WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 4.9 NIPPLE ON UP/DOWN BOP's 3,5 BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) TEST BOP's 1.5 CATERING 11 CAKE APT/HT(1/32') 2 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Pom) 0.05 MEETINGS 3.5 CL WHOLE MUD(mg/L) 900 WELL CONTROL SALT(%Wt) COMPLETION 4.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 73 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 0.25 RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE pH/TEMP 7.7@65 SAFETY MEETINGS BEAR SIGHTINGS: None Reported POMP(0) 0.01/0.04 Running Csg I NID&N/U OTHER WILDLIFE: None Reported CHLORIDES(mg/L) 900 ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca++) 60 WEATHER DAILY HIGH I 15 I DAILY LOW I 5 CASING OD WT GRADE MD ND MAX WIND/DIR MAX WIND CHILL Conductor 20 94 A56 108 108 PRECIPITATION VISIBILTY Surface 9-5/8 40 L-80 3089.2 2426 COMMENTS BHA DESCRIPTION BHA#1 LENGTH 190.12 BHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.0 WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANNNEL) 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,306 108 3,082 2,974 24.4 20 143 122 122 BIT NO 1 INNER I 1 OUTER/ 1 DULL WT I LOC I A I SEAL I E I GAUGE I 1 I OTHER I NO IRP TD HYDRAULICS DATA li PUMP] MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV OP AV DC BIT HHP I PUMP HHP 1 EMSCO F-1000 5.500 10.000 2 EMSCO F-1000 5.500 10.000 /\'>/\N DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 6,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bit Bixby AFE#:640038 IAPI 5:150-103-20652-00-00 DFS:4 _ DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:8 TOOLPUSHER 1:Bib Perry FIELD: DOL:7 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE S:907-865-9900 MD:3,082 TVD: 2.455 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: SHOE TEST: 24 HR FTG: NRS DRLG: I CSGHD: I AFE AMOUNT: $13,504,000 AFE CUM. 54,876,652 24 HOUR N/D Diverler,N/U Vetco Gray Wellhead equip,NN BOP;'s,Test BOP's,Install Wear ring.P/U&Rackbactc 5"drillpipe SUMMARY •� ACTIVITY P/U 8.5"Dir Bha,TIH,Psi Test Csg,Drill out Shoe tract and 20'new hole,Chg out Mud.Perform LOT,Drill ahead 8.5"hole V PLANNED FROM TO HRS OPERATIONS _ _ 0:00 430 4.5 "R/D csg tools and NID Diverter ^ 4:30 9:00 4.5 Install Vetco Gray MB-150 11"X 5K Wellhead `(/ 9:00 12:00 3.0 Nipple up BOP Stack 12:00 20:00 8.0 RN Test tools and test BOP and related equipment to 250 log/4000 psi high,annular to 250 low/3500 high,Witness by Bob Noble W/AOGC /'r 20:00 21:00 1.0 RID Test Tools&Install Wear Ring ei/10 21:00 0:00 3.0 P/U 5"Dritlpipe and RIH,POH Standing back for Drill string. i TOTAL HRS 24.0 MORNING MN 8.5 Dir BHA UPDATE MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME ____ 23:30 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP CF) RIG UP/DOWN 1.0 55.0 BRPC 4 DEPTH/TVD(8) 3082 DRILLING 29.0 ACS 2 MUD WEIGHT/TEMP(lb/gal) 9.7@65 REAMING ASRC SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) CIRCULATE&CONDITION 8.5 BEACON 2 RHEOLOGY TEMP CF) TRIPPING 3.0 32.5 CH2MHILL R600/R300 SERVICE RIG 1.0 HALLIBURTON 8 R200/R100 DOWNTIME 6.5 MISWACO 2 R6/R3 I I I I I SLIP/CUT DRILLING LINE NABORS 28 PV(cP) WIRELINE SURVEYS PEAK 8 YP(lb/100 82) LOGGING SCHLUMBERGER OIL/WATER(%Vol) RUN CASING/CEMENT _ 16,0 SOLSTEN XP 10s/10m/30m GELS(Ib/10of1�1 it // WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/3omin) NIPPLE ON UP/DOWN BOP's 12.0 15.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) TEST BOP's 8.0 9.5 CATERING 12 CAKE APT/HT(1/32') DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) r PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) MEETINGS 3.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 4.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 71 EMUL STABILITY CONSUMABLES START RECEIVED USED INV. SAND(%Vd) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) _ POT WATER MBT(Ib/bbl) USE pH/TEMP 9.5@65 SAFETY MEETINGS BEAR SIGHTINGS: None Reported Pf/Mf(0) Nippling up end Testing I P/U and Rackback DP OTHER WILDLIFE: None Reported CHLORIDES(mg/L) ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca++) WEATHER DAILY HIGH I 15 I DAILY LOW I -9 CASING OD WT GRADE MD TVD MAX WIND/DIR MAX WIND CHILL Conductor 94 A56 108 108 PRECIPITATION IVISIBILTY Surface 9-5/8 40 L-80 3069 2426 COMMENTS BHA AI DESCRIPTION BHA#1 LENGTH 790.72 BHA.WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 2 8.5 Hughes PDC Hughes QD505X 7017337 5 x 13:2x 14 3,082 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,3x16 N 108 3,082 2,974 24.4 20 143 122 BIT NO. 1 INNER I 1 OUTER I 1 DULL WT I LOC I A I SEAL. E I GAUGE I 1 I OTHERI NO IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.500 10.000 2 EMSCO F-1000 5.500 10.000 /\,/\'‘ DRILLING REPORT Brooks Wings Perroeum Co pwaoon WELL:Mustang 81 CONTRACTOR:Nabors Nasky Drilling I RIG: _, RPT DATE:February 7.2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:B41 Bixby AFED:640038 I API 0:150-103-20652-00-00 DFS:5 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 _ REPORT NO:9 TOOLPUSHER t:BN Perry ._ FIELD: DOL:B TOOLPUSHER 2:Brien Tied an ELEV: RICE: 29 LAST BOP TEST:2/6/12 RIG PHONE F 907-865-9900 MD:3,199 TVD: 2524 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 800 24 HR FTG:117 HRS DRLG: I CSGHD:I AFE AMOUNT: 513,504.000 AFE CUM. 85,216,878 Pick up 5'and Std back,MN Bba.TIH P/U 5"OP F/shed to 651,Test Tam Color,TIH to 2916'Coo&Coed,Test Cog,DMR shoe tract+20 new hole,Ckc,Chg Mud,PerI,LOT, 24 HOUR Dri18.5"Dk Hole SUMMARY ACTIVITY Dir DM 8.5"hole,Wiper trips PLANNED FROM TO HRS OPERATIONS 0:00 4:30 4.5 PN and Stand back 5"dtllplpe for[Sling 4:30 10:00 5.5 PN BHA per Dir Driller to 651' 10:00 11:00 1.0 TIH,Singles Fished to 683',Test mg to 1500 psi.(Tam Collar Test)OK 11:00 14:00 3.0 TIH to 2916'picking up singles from shed 14:00 14:30 0.5 Cir and Gond for csg test 14:30 15:00 0.5 Rig Up Test equipment 15:00 16:00 1.0 Test CSg to 3500 psi.F/30 min.OK 16:00 17:00 1.0 Cut 109 01 Onling line, 17:00 17:30 1.0 Service Rig 17:30 18:30 1.0 Oriel coot,Plugs,Float mbar@2988'Coot out of shoe tract Float shoe @ 31169',Ch out Pothole to 3082'Drill New hole to 3105' 18:30 20:00 1.5 Gm bottoms up 20:00 20:30 0.5 Change Present Mud system out to KLA-Shield system 9.7 ppg. 20:30 22:00 1.5 Perform FIT.Appy 800 psi,took 1.8 bble.9.7 ppg mud @ TVD of 2469'=to 15.9 ppg.Equivalent MW 2200 0:00 2.0 Dir Ore 8.5"Hole F/3105'to 3199'WOB=IOK,GPM=525.Psion Bor1274.08=1080,TD rpm 70.Mb=173 TOTAL HRS 24.0 MORNING IDk Drill 8.5"Hole @ 3900'ROP avg.275/ph UPDATE MUD RECORD MUD 1 Water-Based MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 22,00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) RIG UP/DOWN 55.0 BRPC 4 DEPTH/TVD(ft) 3015 DRILLING 3.0 32.0 ACS 2 MUD WEIGHT/TEMP(b/gal) 9.7@59 REAMING ASRC SOLIDS(%Vol) 3 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 58 CIRCULATE&CONDITION 2.5 11.0 BEACON 2 RHEOLOGY TEMP CF) 120 TRIPPING 14.0 46.5 CH2MHILL R600IR300 45/34 SERVICE RIG 0.5 1.5 HALLIBURTON 8 2_. R200IR700 30/22 DOWNTIME 6.5 MISWACO R6/R3 I I I I I 10/8 SLIP/CUT DRILLING UNE 1.0 1.0 NABORS 28 PV(cP) 11 WIRELINE SURVEYS PEAK 8 YP(Ib/1001e 23 LOGGING SCHLUMBERGER OILIWATER(%Voq 96 RUN CASING/CEMENT 3.0 19.0 SOLSTEN OP 10s/10m130m GELS(6/100801 9/12/11 II WAIT ON CEMENT WEATHERFORD API FLUID LOSS(ooI30min) 6.2 NIPPLE ON UP/DOWN BOP's 15.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/3Omin) TEST BOP's 9,5 CATERING 11 CAKE APT/HT(1/32) 1 - DRILL STEM TEST I_AIIII OTHER 3 UNC RET SOLIDS(%Vol) I PLUG BACK CORRECT SOLIDS(%Vol) _SQUEEZE CEMENT OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) 2.8 MEETINGS 3.5 CL WHOLE MUD(mg/L) 78000 WELL CONTROL SALT(%Wt) COMPLETION 4.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 70 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 0 RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpn) 568 SUPPORT FUEL PUMP PRES(psi) 1500 TOTAL FUEL ROP(FPH) POT WATER MBT(b/bbl) HSE pH/TEMP 9.7059 SAFETY MEETINGS BEAR SIGHTINGS: None Reported Pf/M8(0) 2.6/0.6 Tripping&Testing I Tripping&Testing OTHER WILDLIFE: None Repotted CHLORIDES(mg/L) 78000 ACCIDENTS: None Reported SPILLS: None Reported HARDNESS(Ca++) 100 WEATHER DAILY HIGH I 18 I DAILY LOW I 5 CASING OD WT GRADE MD TVD MAX WIND/DIR MAX WIND CHILL Conductor 94 A56 PRECIPITATION VISIBILTY Surface 40 L-80 COMMENTS Weather is very nice/Too wenn for our winter work. BHA DESCRIPTION BHA 82 LENGTH BHA WT AIR BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.O WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 2 8.5 Hughes PDC QD505X 7017337 5 o 13,2x 14 3,082 15 1 12.25 Hughes MITI Tooth VM-3 5204493 1814.3016 N 108 3,082 2.974 24.4 20 143 122 BIT NO. 1 INNER I 1 OUTER 1 DULL WT I LOC I A I SEAL I E I GAUGE I 1 I OTHER I NO IRP TD HYDRAUUCS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 116 1400 525 95 2 EMSCO F-1000 5.000 10.000 113 1400 525 95 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES 6118 BG: 5 MAX: REMARKS: PUMP SPM PRESS I --- DEPTH CONN: CL: 81 35 60 3,105 SHOWS TRIP: FORMATION: 112 51 200 3,105 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I VW V.SECTION DLS 3,063 54.44 102.91 2,444 366.92 1475.82 366.9 1.9 3,148 53.96 101.43 2.494 381.51 1543.26 -381.5 1.5 3,250 53.44 100.65 2,554 397.21 1623.7 -3972 0.8 3,341 52.66 101.19 2.609 411.04 1695.43 -411.0 1.0 , `'\ DRILLING REPORT Brooks Range Petroleum Corparabon WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG:I 7ES RPT DATE:February 8,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby AFE#:640038 I API S:I50-103.20852.00-00 DFS:6 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:10 _ _ TOOLPUSHER 1:Cleve Coyne FELD: DOL:9 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE#:907-865-9900 MD:5,181 TVD: 3,684 NEXT BOP TEST:2/13/2012 _LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 800 24 HR FTG:1,982 HRS DRLG: I CSGHD: I AFE AMOUNT: $13,504,000 AFE CUM. $5,831,529 24 HOUR Dir Drill 8-1/2"Hole,Wiper Trip,Dir Ddtl 8-1/2"Hole SUMMARY ACTIVITY Cont.Dir Drilling 8-1/2"Hole PLANNED FROM TO HRS OPERATIONS 0:00 15:00 15.0 Dir Drill 8.5"Hole F/3199'to 4804',WOB=24K,RPM=100 td,Mtr=189,575°GPM,PSI 1755 on Bot,TQ on=8,TQ oft=7K, 15:00 16:30 1.5 Circ welbore clean for wiper trip 16:30 18:00 1.5 Wiper Trip to F/4804'to 2999',Had no abnormal Tq or Drag(Hole in good Condition) 18:00 18:30 0.5 Service rig 18:30 19:30 1.0 Wiper trip in hole F/3069'to 4804'No 101 19:30 0:00 4.5 Dir Drill 8.5"Hole F/4804'to5181'WOB=20K,GPM=575,RPM=100 TD,189 MTR,Up140K,DN 85r-. T100K TOTAL HRS 24.0 MORNING Dir Drilling 8-1/2"Hole©5600' UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 14:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP CF) 84 85 RIG UP/DOWN 55.0 BRPC 5 DEPTHRVD(ft) 4950 4671 DRILLING 19.5 51.5 •CS 2 MUD WEIGHT/TEMP(b/gal) 9.76578 9.76584 REAMING -C SOLIDS(%V I) 8 8 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 51 50 CIRCULATE 8 CONDITION 1.5 12.5 BEACON 2 RHEOLOGY TEMP(°F) 120 120 TRIPPING 2.5 49.0 CH2MHILL R600/R300 53/39 50/39 SERVICE RIG 0.5 2.0 HALLIBURTON 9 R200/R100 44/26 33127 DOWNTIME 6.5 MISWACO 2 R6/R3 I I I I I 10/10 11 SLIP/CUT DRILLING LINE 1.0 NABORS 28 PV(cP) 14 11 WIRELINE SURVEYS PEAK 8 YP(b/1001t2) 25 28 LOGGING SCHLUMBERGER OIL/WATER(%V01) 3 88.5 RUN CASING/CEMENT 19.0 SOLSTEN XP 108/10m/30m GELS(b/10082) 10/16/21 10/13/17 WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 5.2 5.6 NIPPLE ON UP/DOWN BOP's 15.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) na na TEST BOP's 9.5 CATERING 11 CAKE APT/HT(1/32') 1 1/ne DRILL STEM TEST OTHER 3 i UNC RET SOLIDS(%Vol) I PLUG BACK CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OIL(%Vol) 3.5 FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) MEETINGS 3.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 4.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 72 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) .1 .1 RIG FUEL ECD(ppg) 10.7 10.79 CAMP FUEL FLOW IN(gpm) 590 590 SUPPORT FUEL PUMP PRES(psi) 2100 2000 TOTAL FUEL ROP(FPH) 150 200 POT WATER MBT(Ib/bbl) 2.8 2.5 HSE pH/TEMP 9.86578 9.84384 SAFETY MEETINGS BEAR SIGHTINGS: None Pf/Mf(0) 3/3.55 2.5/3.6 Man Down Drill I F/Derrick OTHER WILDLIFE: None CHLORIDES(mg/L) 68000 79000 ACCIDENTS: None SPILLS: None HARDNESS(Ca••) 180 180 WEATHER DAILY HIGH I 0 I DAILY LOW I -11 CASING OD WT GRADE MD ND MAXW84D/DIR SW17 MAX WIND CHILL -28 Conductor 20 94 A56 108 108 PRECIPITATION VISIBILTY 3 miles Surface 9-5/8 40 L-80 3089 2449 COMMENTS mostly cloudy BHA DESCRIPTION BHA#2 LENGTH 651.79 BHA.WT AIR 42.63 • BHA WT.MUD 36.33 HRS.ON JARS 15 ROT WT. 100 P.0 WT 140 5.0 WT. 85 TORQUE 8500 BIT DATA NO. 1 SIZE MAKE TYPE SER NO. NOZZLES I RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 2 8.5 Hughes IC Hughes 01350 7017337 5 x 13,2x 14 3,082 15 1 12.25 Hughes Mill Tooth VM3 5204493 1x14,3x16 N 108 3,082 2,974 24.4 20 143 122 BIT NO 1 INNER I 1 OUTERI 1 DULL WT I LOC I A I SEAL I E I GAUGE I 1 I OTHER I NO IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DCI BIT HHP PUMP HHP 1 EMSCO 11 F-1000 5.000 10.000 115 1800 283 95 -{II 2 EMSCO F-1000 5.000 10.000 115 1800 283 95 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: 21 MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 220 4,804 TRIP: FORMATION: #2 52 270 4,804 SURVEY DATA _ MD ANGLE AZIMUTH TVD N/S COORDINATES ENV V.SECTION DLS 4,473 52.68 105.07 3,260 631.52 2594.57 2,009.8 1.1 4,571 53.69 104.57 3,319 651.45 2669.90 2,067.4 1.1 4,885 54.73 104.21 3,374 670.53 2744.28 2,124.6 1.1 `I i • " DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drthog I RIG:I 7ES RPT DATE:February 9,2012 SPUD DATE:212/12 DRILLING SUPERVISOR 1:Bill Bixby __ AFE M 640038 I API BrI50-103-20652-00.00 DFS:7 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:11 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:10 TOOLPUSHER 2:Brian Tiedman - ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE i 907-865-9900 MD:7,166 TVD: 4,817 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 800 24 HR FTG:1,985 HRS MLI: I CSGHD: I AFE AMOUNT: 813,504,000 AFE CUM. $5,992,617 24 HOUR Dir Drill 8-1/2"Hole SUMMARY ACTIVITY Dir Drill 8-1/2"Hole to 200'-*top HRZ,Wiper Trip,Wt up to 10.7 ppg.Dir Drill 8-1/2"Hole ahead to TD PLANNED FROM TO HRS OPERATIONS 0:00 0:00 24.0 Dir Drill 8-1/2"Hole F/5181'to7166'WOB=20,RPM 120 TO,mtr=185 TOTAL HRS 24.0 MORNING Drilling ahead for angle and direction @7560' UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 92 92 RIG UP/DOWN 55,0 BRPC 5 DEPTH/TVD(ft) 6977 6500 DRILLING 24.0 75.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 9.8 3/92 9.8 REAMING ASRC SOLIDS(%Vol) 9.5 9 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 52 50 CIRCULATE E.CONDITION 125 BEACON 2 RHEOLOGY TEMP("F) 120 53 TRIPPING 49.0 CH2MHILL R600/R300 54/39 41 SERVICE RIG 2.0 HALLIBURTON 8 R200/R100 33/25 34 DOWNTIME 6.5 MISWACO 2 R6/R3 I I I I I 9/9 24 SLIP/CUT DRILLING LINE 1,0 NABORS 28 PV(cP) 15 12 WIRELINE SURVEYS PEAK 8 YP(lb/100 f l 24 29 LOGGING SCHLUMBERGER OIL/WATER(%Vol) 87 87 RUN CASING/CEMENT 19.0 SOLSTEN XP I 10s/10m/30m GELS(Ib/100R°I 10/20/28 10/15122 WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 4.8 4.5 NIPPLE ON UP/DOWN BOP's 15,5 BEAR WATCH 2 HTHP FLUID LOSS(W30min) ta N/A TEST BOP% 5,5 CATERING 11 CAKE APT/HT(1/32") t/na WA DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) I 5 4.7 PLUG BACK CORRECT SOLIDS(%Vol) 4.7 5 SQUEEZE CEMENT OIL(%Vol) 4 4 FISHING UNCORR WATER(%Vol) 87 87 DIRECTIONAL WORK OILIWATER RATIO 4/87 87 MISCELLANEOUS L ALKAL MUD(Porn) 2 2 MEETINGS 3,5 CL WHOLE MUDm ( gIL) 61000 62000 WELL CONTROL SALT(%Wt) 2.8 COMPLETION 4.0 LIME(111/1M1) 0 COMPLETION(STANDBY) TOTAL 71 EMUL STABILITY0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 25 .15 RIG FUEL ECD(ppg) 11.13 10.95 CAMP FUEL FLOW IN(gpm) 564 555 SUPPORT FUEL PUMP PRES(pal) 2178 2100 TOTAL FUEL ROP(FPH) 65.7 62 POT WATER MBT(Ib/bbl) 5 3.5 HSE pH/TEMP 9.7 89 SAFETY MEETINGS BEAR SIGHTINGS: None Pf/Mf(0) 2/3,8 2.4 Last Tour Stay focused I Lifting correctly OTHER WILDLIFE: None CHLORIDES(mg/L) 61000 62000 ACCIDENTS: None SPILLS: None HARDNESS(Cau+) 160 160 WEATHER DAILY HIGH I 2 I DAILY LOW I -7 CASING 00 WT GRADE MD TVD MAX WIND/DIR 8/E MAX WIND CHILL -19 Conductor 94 A56 PRECIPITATION VISIBILTY 9 miles Surface 9-5/8 40 1-80 3069 2448 COMMENTS BHA DESCRIPTION BHA#2 LENGTH 651.79 BHA.WT AIR 42.63 BHA WT.MUD 36,33 HRS.ON JARS 25.72 ROT WT, 100 P.0 WT 140 S.O WT. 85 TORQUE 8500 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET FIRS WOB RPM ROP DP(ANN./VEL) DC(ANN.NEL) 2 8.5 Hughes PDC Q0505X 7017337 5 x 13,2x 14 3,082 4,084 25.7 25 159 159 1 12.25 Hughes PARITooth VM-3 5204493 1414,306 N 108 3,082 2,974 24.4 20 143 122 BIT NO 1 INNER I 1 OUTER/ 1 DULL WT I LOC I A I SEAL I E I GAUGE I 1 I OTHER I NO IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 1 EMSCO F-1000 5,000 10.000 116 2425 286 95 2 EMSCO F-1000 5.000 10,000 111 2425 286 95 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BD: 85 MAX: REMARKS: PUMP SPM PRESS r DEPTH SHOWS CONN: 250 CL: #1 35 240 4,940 , TRIP: FORMATION: #2 35 240 4,940 SURVEY DATA MD ANGLE AZIMUTH TVD WS I COORDINATES I E/W V.SECTION DLS 6,177 53.75 105.78 4,245 928.05 3839.29 3,040.7 1.6 8,460 55,17 106.24 4,410 1045.7 4160.62 3,207.7 1.3 6,649 53.71 105.73 4520 1088.15 4308.76 3,319.5 0.8 6,839 54.87 103.77 4,629 1126.51 4458.81 3,434.8 0.9 1 / ' _\ DRILLING REPORT Brooks Range Petro:eum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 10,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby _ AFE#:640038 I API4k 150-103-20652-00-00 DFS:8 DRILLING SUPERVISOR 2:Larry Myers LEASE:390680 REPORT NO:12 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:11 TOOLPUSHER 2:Brian Tiedman _ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE#:907-865-9900 MD:8,392 TVD: 5580 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 3,500 24 HR FTG:1,226 HRS DRLG: I CSGHD:I AFE AMOUNT: $13,504,000 AFE CUM. $6,482,525 24 HOUR Drilled 8 1/7 hole for angle and direction SUMMARY ACTIVITY Short trip to above 4800'and weight up mud system alter short trip to 10.7 ppg prior to drilling HRZ&drill to casing point. PLANNED FROM' TO HRS OPERATIONS 0:00 12:00 12.0 Drilling 8 1/2 hole from 7166'to 7920'WOB=24k,GPM=560,SPM=236,psi on=2430#,psi off=2069#,RPM=100 TQ on=12.8K,TQ oft=11K,UWT=170K,SOW=110K,ROT wt=130K,ECD Calc=10.5,ECD actual=11.03 ART=5.5 Hrs,AST=1.95 Hrs ADT=7.45 Hrs,Bit=33.17 Hrs,Jar--33.17 Hrs.SPR#1=220psi @ 2BPM&300 psi Q3BPM.SPR#2=240 psi©2BPM&280 psi @ 3BPM 12:00 23:30 11.5 Orftng 8 1/2 hole from 7920'to 8392',WOB=35K.GPM=560,SPM=230,Psi on=2555,Psi oft=2156,RPM=100 TQ on=1OK,TO of=9.36.UWT=180K,SOW=125K,ROT=135K,10.5 CECD,11.12 ASCD,AST=3.67,ART=5.26,ADT=8.93 I 23:30 0:00 0.5 Circulate and condition for short trip,Pump high vis sweep surface to surface with 575 GPM and 40 RPM TOTAL HRS 24.0 MORNING(Prepare to RIH after short trip to 4613',No overpull on hip out with correct displacement. UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 2100 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) 105 104 RIG UP/DOWN 55.0 BRPC 4 DEPTH/IVO(ft) 5532 5400 DRILLING 23.5 99.0 ACS 2 MUD WEIGHT/TEMP(lb/gal) 9.8 9.8 REAMING ASRC SOLIDS(%Vol) 10.5 10 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 49 51 CIRCULATE&CONDITION 0.5 13.0 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 49.0 CH2MHILL R600/R300 57/41 54/40 SERVICE RIG 2.0 HALLIBURTON 8 R200/R100 34/25 34/26 DOWNTIME 6.5 MISWACO 2 R6/R3 9/9 12 SLIP/CUT GRILLING LINE 1.0 NABORS 29 PV(cP) 16 14 WIRELINE SURVEYS PEAK 8 YP(Ib/100 ft m 25 26 LOGGING SCHLUMBERGER • OIL/WATER(%Vol) 86 86 RUN CASING/CEMENT 19,0 SOLSTEN XP 10s/10m/30m GELS(Ib/10011° 9/24/38 1123/35 WAIT ON CEMENT I WEATHERFORD API FLUID LOSS(cc/30min) 5.2 5.6 NIPPLE ON UP/DOWN BOP's 15.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/30min) 0 0 TEST BOP's 9.5 CATERING 11 CAKE APT/HT(1/32') 0 1 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) 7.2 10 _PLUG BACK CORRECT SOLIDS(%Vot) 7.6 7.2 SQUEEZE CEMENT OIL(%Vol) 4 4 FISHING UNCORR WATER(%Vol) 86 86 DIRECTIONAL WORK _ OIL/WATER RATIO 0 0 MISCELLANEOUS ALKAL MUD(Pan) 1 1.5 MEETINGS 3.5 CL WHOLE MUD(mglL) 58000 52000 WELL CONTROL SALT(%WI) 2.7 9 COMPLETION 4.0 LIME(Ib/bbl) 0 0 COMPLETION(STANDBY) TOTAL 71 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) .25 .15 RIG FUEL ECD(ppg) 10.95 10.9 CAMP FUEL / FLOW IN(gpm) 564 564 SUPPORT FUEL f/ PUMP PRES(psi) 2130 2130 TOTAL FUEL ROP(FPH) 58.9 58 POT WATER MBT(Ib/bbl) 8.5 7 HSE pH/TEMP 101 102 SAFETY MEETINGS BEAR SIGHTINGS: none PBMf(0) 1.15/3.4 1.40/3.7 focus on task at hand I OTHER WILDLIFE: none CHLORIDES(mgIL) 1500 1500 ACCIDENTS: none SPILLS: none HARDNESS(CV.) 190 180 WEATHER DAILY HIGH I 10 I DAILY LOW I -4 CASING OD WT GRADE MD TVD MAX WIND/DIR 8/N MAX WIND CHILL -15 Conductor 94 A56 108.5 108.5 PRECIPITATION VISIBILTY 1 mile • Surface 9-5/8 40 L-80 3069 2448 COMMENTS BHA DESCRIPTION BHA#2 LENGTH 651.79 BHA.WT AIR 42.63 BHA WT.MUD 36.33 HRS.ON JARS 42.1 ROT WT. 135 P.0 WT 180 S.O WT. 125 TORQUE 10 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANNJVEL) 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 3,082 8,392 42.1 25 199 199 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,3018 N 108 3,082 2,974 24.4 20 143 122 BIT NO. 1 INNER I 1 OUTERI 1 DULL WT I LOC SEAL I E IGAUGEI 1 I OTHERI NO IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP _ PUMP HHP 1 EMSCO F-1000 5.000 10.000 117 2100 287 2.45 96 2 EMSCO F-1000 5.000 10.000 117 2100 287 2.45 96 PRESSURE PARAMETERS PORE PRESSURE:( _ REDUCED PUMP RATES GAS BG: 250 MAX 2,400 REMARKS: PUMP r SPM PRESS DEPTH SHOWS CONN: CL: #1 35 240 4,940 TRIP: FORMATION: #2 35 240 4,940 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I ENV V.SECTION DLS 8,065 49.73 81.89 5,367 -1266.85 __ 5422.54 4,224.9 4.3 _ 8,160 49.68 75.50 5,428 -1252.58 5493.67 4,294.6 5.1 8,256 49.20 71.71 5,490 _ -1232.13 5563.16 4,365.7 3.1 8,349 48.65 87.69 5,552 -1207.61 5629.48 4,435.8 3.3 • /\')/\'‘ DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alas..,t',,t!•...; RIG: RPT DATE:February 11,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby AFE S:840038 I API 5:150-103.20652-00-00 DFS:9 DRILLING SUPERVISOR 2: LEASE:390880 REPORT NO:13 TOOLPUSHER 1:Cleve Coyne _ FIELD: DOL:12 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST:2/6'12 RIG PHONE#:907.865.9900 MD:8872 TVD: 5,763 NEXT BOP TEST:2/13201:: _ LAST SHOE TEST DATE: 02/07r2012 SHOE TEST: 3,500 24 HR FTG:280 HRS DRLO: I CSGHD: I AFE AMOUNT: $13.504,000 AFE CUM. $6,754,856 24 HOUR Drilled to 8672 and repaired#1 Mud Pump SUMMARY ACTIVITY Drill to TD for 7"casing PLANNED FROM TO HRS OPERATIONS 0:00 2:30 2.5 Circulate and condton CO 8392'a total of 4.5 calculated BU.GPM=575 00 2300 psi.with 40 RPM.TQ=8.5K,UWT=180K,SOW=115K,ROT=132K. Stand back one stand after each BU to 8013'.Monitor wel for 10 minutes-Static 2:30 6:00 3.5 PJSM,POH from 8013'to 4613'with correct fill and no overpult Monitor well for 10 minutes.Static 6:00 8:00 2.0 PJSM and RIH from 4612 to 8108',UWT=115,SOW=85K.No issues on RIH. 8:00 9:00 1.0 Precautionary wash and ream 8108'to 8392',with 465 GPM&2340 psi with 60 RPM.UWT=210K,SOW=100K ROT=135K with 10K torque. 9:00 12:00 3.0 Orlg from 8397 to 8427,WOB=35K,GPM=565,PSI on=2480,PS108=2260,RPM=80,TQ on=8.6K TQ 08=9.2K,UWT=210,SOW=100K,ROT=132K,AST=1.73, ADT=2.28,Bit Hours=44.38,Jar hours=44.38.Weight up mud system to 10.7ppg with spike fluid while drilling 12:00 18:00 6.0 Drilling for angle end direction from 8422'to 8672'pumping ant-bit balling sweeps as needed.WO13=25K,GPM=560,SPM=230,PSI on=2648,PSI 08=2355, RPM=100,TQ on=10.3K.TQ off--9.2K,UWT=185K,SOW=120K,ROT=135K,11.6 Calc.ECD,11.9 Actual ECD,AST=1.43,ART=2.72,ADT=4.15,Jar&Bit 1800 0:00 6.0 #1 Mud pump,#3 cyllinder found to be cracked.Pump out of hole with low pump rate while changing out#3 fluid end module. TOTAL HRS 24.0 MORNING Drilling for Angle and direction$6 8677' UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) N/A 102 RIG UP/DOWN 55,0 BRPC 4 DEPTH/TVD(ft) 5763 _ 8517 DRILLING 9.0 108.0 ACS 2 MUD WEIGHT/TEMP(b/gal) 10.8/91 10.7/99 REAMING 1.0 1.0 ASRC SOLIDS(%Vd) 11 10.5 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 52 53 CIRCULATE&CONDITION 2.5 15.5 BEACON 2 RHEOLOGY TEMP(*F) 120 120 TRIPPING 5.5 54.5 CH2MHILL R600/R300 64/45 58/42 SERVICE RIG 2.0 HALLIBURTON 8 R200/R100 37/28 33/27 DOWNTIME 6.0 125 MISWACO 2 R6/R3 10/9 10 SLIP/CUT DRILLING LINE 1.0 NABORS 29 PV(cP) 19 16 WIRELINE SURVEYS PEAK 8 YP(b/1009° 26 26 LOGGING SCHLUMBERGER OIL/WATER(%Vd) 84 85 RUN CASING/CEMENT 19.0 SOLSTEN XP 10s/10m/30m GELS(Eli 0001 1021/30 11/25/35 WAIT ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 5.4 5.2 NIPPLE ON UP/DOWN BOP's 15.5 BEAR WATCH 2 HTHP FLUID LOSS(cc/3Omin) 0 0 TEST BOP's 9,5 CATERING 11 CAKE APT/HT(1/37) 1 1 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) 11 10.5 PLUG BACK CORRECT SOLIDS(%Vd) 0.7 0.6 SQUEEZE CEMENT OIL(%Vd) 5 5 FISHING UNCORR WATER(%Vel) 84 85 DIRECTIONAL WORK OIL/WATER RATIO 0 85 MISCELLANEOUS ALKAL MUD(Pom) 12 1.4 MEETINGS 3.5 CL WHOLE MUD(mg/L) 55000 55000 WELL CONTROL SALT(%Wt) 3 3 COMPLETION 4.0 / (b/ LIME W1) 0 0 COMPLETION(STANDBY) TOTAL 71 !/ EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Voi) .25 25 RIG FUEL ECD(ppg) 10.86 10.86 CAMP FUEL FLOW IN(gpm) 170 170 SUPPORT FUEL PUMP PRES(psi) 450 450 TOTAL FUEL ROP(FPH) 37.8 37 POT WATER MBT(blbbl) 9.75 9.5 HSE pH/TEMP 9.6/91 9.5/98 SAFETY MEETINGS BEAR SIGHTINGS: None PflMf(0) 1.40/3.25 1.3/3.30 following procedures I OTHER WILDLIFE: None CHLORIDES(mg/L) 1500 1500 ACCIDENTS: None SPILLS: None HARDNESS(Ca..) 140 140 WEATHER DAILY HIGH 1 010 I DAILY LOW I -2 CASING OD WT GRADE MD TVD MAXWIND/DIR NE9 MAX WIND CHILL -14 Conductor 94 A56 PRECIPITATION VISIBILTY Surface 9-5/8 40 L-80 3069 2448 COMMENTS BHA DESCRIPTION BHA 02 LENGTH 651.79 BHA.WT AIR 42.83 BHA WT.MUD 36.33 HRS.ON JARS 48.53 ROT WT. 135 P.0 WT 180 S.O WT. 125 TORQUE 10 BR DATA NO. SIZE MAKE 'TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) • 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 3,082 8,392 48.5 35 173 173 1 12.25 Hughes MB Tooth VM-3 5204493 1014,3016 N 108 3,082 2,974 24.4 20 143 122 BIT NO. 1 INNER I 1 OUTER! 1 DULL WT I LOC I A I SEAL I E IGAUGE I 1 IOTHERI NO IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% _ECD AV DP AV DC BIT HHP _ PUMP HHP 1 EMSCO F-1000 5.000 10.000 115 2400 282 2.45 96 11.86 2 EMSCO F-1000 5.000 10.000 117 2400 286 2.45 96 11.86 PRESSURE PARAMETERS PORE PRESSURE:! REDUCED PUMP RATES GASBG: 200 MAX: 2,320 REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 300 8,820 TRIP: FORMATION: #2 35 280 8,620 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I E/W V.SECTION DLS 8.445 49.02 63.11 5,615 -1177.88 5694.43 4,507.1 3.6 8,539 49.20 59.70 5,676 -1143.64 5757.25 4.578.7 27 /\,/\"\, DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling RIG: I 7ES RPT DATE:February 12,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bit Bixby AFE ft 640038 I API 0:150.103-20652-00-00 DFS:10 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:14 TOOLPUSHER 1:Cleve Coyne _ FIELD: DOL:13 TOOLPUSHER 2:Brian Tredmen ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE t.907-865-9900 _ MD:9,120 TVD: 6,051 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 3,500 24 HR FTC:448 HRS DRLG: I CSGHD:I AFE AMOUNT: $13 50.o:'c AFE CUM. $7,230,430 24 HOUR Dnlled to 7"casing point @ 9120'.clrc.well clean&short trip,weight up to 10.8+ppw pump sweep and POH for 7"casing SUMMARY ACTIVITY Lay down BHA.Change and test earns and run 7"casing PLANNED FROM TO HRS OPERATIONS 0:00 4.00 4.0 Continue to repair#1 pump while pumping out of hole to 6597'.GPM=200,PSI=520 UWT=150K,SOW=95K 4:00 4:30 0.5 Pressure test standpipe manifold and mud pumps 3500 psi.Good test,Blow down TD and observe well 10 minutes,static 4:30 5:00 0.5 Trip in hole to 8587,UWT=150K SOW=95K 5:00 5:30 0.5 Wash and ream from 8587 to 8672'tb dean bk.Hole in goad shape with no problems on short trip. 5:30 12:00 6.5 Drilling for angle and direction from 8677 to 8975'.W08=20K,GPM 555,PSI on=2935,PSI off=2680 RPM=80,TO on=10.5K,TO ott=9.4K, Calculated ECD=11.8 ppg,Actual ECD=11.8 ppg,AST=1.19,ART=2.48,ADT=3.67,Bit hours=52.2,Jar hours=522. 12:00 17:00 5.0 Drilling for angle and direction from 8975'to 9120',TD or 7".Top of HRZ found @ 8775 MD,Top Kaobik found @ 8940'MD,K1 Markert9048'MD, Drilling parameters=WO8=30K,GPM4070,SPM=235,PSI on=3030,PSI off=2830,RPM=80,IM?=200K,SOW=118K.ROT=14OK,TO on=11 2.TO o0=9.8, 17:00 19:00 2.0 Circulate and pump his vis sweep surface to surface for shod trip.High vis sweep 20%increase of cuttings at shaker. 19.00 21:30 2.5 Short trip from 9120'to 8108'on elevators with no tight spots.I1WT=215K SOW=120K 21:30 0:00 2.5 Circulate and condition mud for casing run.Gas increase on BU to 7500 units.Weight up mud system to 10.8+ppg. TOTAL HRS 24.0 MORNING Pulling out of hole to run 7"casing,AOGCC inspectors John Crisp and Jeff Jones granted 24 hour extension for BOP test R needed. UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP("F) 104 101 RIG UP/DOWN 55.0 BRPC 4 DEPTH/TVD(ft) 9120 9056 DRILLING 11,5 119.5 ACS 2 MUD WEIGHT/TEMP(Ib/gal) 10.7/96 10.799 REAMING 0.5 1.5 ASRC I SOLIDS(%Vol) 12 12 CORING BAKER HUGHES FUNNEL VISCOSITY(slot) 51 50 CIRCULATE A CONDITION 4.5 20.0 BEACON 2 RHEOLOGY TEMP("F) 120 120 TRIPPING 3.0 57.5 CH2MHILL R600/R300 84/45 63143 SERVICE RIG 0.5 2.5 HALLIBURTON 8 R200/R100 37/28 3628 DOWNTIME 4.0 16.5 MISWACO 2 R6/R3 I I I I I 99 11 SLIP/CUT DRILLING LINE 1.0 NABORS 28 PV(cP) 19 20 WIRELINE SURVEYS PEAK 8 YPQN100ff1 26 23 LOGGING SCHLUMBERGER OILIWATER(%Vol) 83 83 RUN CASING/CEMENT 19.0 SOLSTEN XP 10s/10m/30m GELS(I6/100112) 9/23/31 9/18/29 WAR ON CEMENT WEATHERFORD API FLUID LOSS(cc/30min) 52 5.5 NIPPLE ON UPIDOWN BOP's 15.0 BEAR WATCH 2 i HTHP FLUID LOSS(cc/30min) 0 0 TEST GOP's 9.5 CATERING 10 CAKE APT/HT(1/32") 1 1 DRILL STEM TEST OTHER 3 UNC RET SOLIDS(%Vol) I 12 12 PLUG BACK CORRECT SOLIDS(%Vol) 2.8 2.8 SQUEEZE CEMENT OIL(%Vol) 5 5 FISHING UNCORR WATER(%Vol) 83 83 DIRECTIONAL WORK OIL WATER RATIO 6 5 MISCELLANEOUS ALKAL MUD(Pom) 1.A 1.4 MEETINGS 3.5 CL WHOLE MUD(mgt.) 55000 57000 WELL CONTROL SALT(%Wt) 3 2.9 COMPLETION 4.0 LIME(161551) 0 0 COMPLETION(STANDBY) TOTAL 69 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) .25 .25 RIG FUEL / ECD(ppg) 10.95 10.95 CAMP FUEL y FLOW IN(gpm) 170 170 SUPPORT FUEL PUMP PRES(psi) 315 315 TOTAL FUEL I ROP(FPH) 39 39 POT WATER 1ST(16.4261) 12 8.5 HSE pH/TEMP 9.4/96 9.499 SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) 1,2/32 1.413.5 working at heights I OTHER WILDLIFE: none CHLORIDES (mg1L) 1500 1500 ACCIDENTS: none SPILLS: none HARDNESS(Ca++) 180 160 WEATHER DAILY HIGH I +9 I DAILY LOW I -9 CASING OD WT GRADE MD TVD MAXWIND/DIR 8/E MAX WIND CHILL -21 Conductor 94 A56 PRECIPITATION VISIBILTY .5 miles Surface 9-5/8 40 L-80 3069 2448 COMMENTS BHA DESCRIPTION BHA#2 LENGTH 651.79 BHA WT AIR 42.63 BHA WT.MUD 36.33 HRS.ON JARS 55,7 ROT WT. 140 P.0 WT 200 S.O WT. 118 TORQUE 10 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANNJVEL) DC(ANN.NEL) 2 8.5 _ Hughes PDC QD505X 7017337 5 x 13,2x 14 3,082 9,120 6,038 55.7 35 186 108 283 108 _ 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,3x18 N 108 3,082 2,974 24.4 20 143 122 BR NO. 1 INNER I 1 OUTERI / DULL WT I LOC I A I SEAL I E I GAUGE I 1 IOTHERI NO IRP TD HYDRAULICS DATA ' PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP r 1 EMSCO F-1000 5.000 10.000 111 2625 286 2.45 98 11.77 2 EMSCO F-1000 5.000 10.000 113 2825 277 2.45 98 11.77 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: 518 MAX: 1.441 REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 280 8,800 TRIP: 7,434 FORMATION: #2 52 370 8,800 SURVEY DATA MD ANGLE AZIMUTHND N/S COORDINATES I EMIEMIV.SECTION DLS 8,822 49.74 43.84 5,858 -1010.22 5928.64 4,790.5 4.8 8,916 48.62 42.62 5,920 -9582 5975.48 4.857.9 1A 9,011 50.77 39.49 5,981 -903.83 6022.79 4,924.9 3A _-- 9,078 50.54 34.99 6,024 -862.31 6054.36 4,972.1 5.2 S / ' "` DRILLING REPORT Brooks flange Petrslevm Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I - , RPT DATE:February 13,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby AFE A 640038 I API#.I50-103-20652-00-00 DFS:11 DRILLING SUPERVISOR 2:Dan Shearer _ LEASE:390680 REPORT NO:15 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:14 TOOLPUSHER 2:Brian Tiedman ELEV: RICE: 29 LAST BOP TEST:2/6/12 RIG PHONE#:907-865-9900 MD:9,120 TVD: 6,051 NEXT BOP TEST:2113/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 3,500 24 HR FTG: HRS DRLO: I CSGHD: I AFE AMOUNT: $13,504.000 AFE CUM. $7,597,334 24 HOUR POH,LD BHA and HWDP,change and test rams,RU and run r casing SUMMARY ACTIVITY Land and cement 7"Casing.install and test T pack off.Test BOPE PLANNED FROM TO HRS OPERATIONS 0:0;. .,,,, 1.0 Circulate and condition mud and weight up to 108+ppg. 1:00 3:00 2.0 Trip out of hole from 9120'to 8013'with no adverse tole conditions UWT=215K.SOW=120K _. 3:00 3:30 0.5 Kelly up and pump 35 bbl 12.7 ppg dry job,Blow down Top Drive 3:30 6:00 2.5 POH to BHA with no adverse hole conditions.Monitor well for 10 minutes at casing shoe and at BHA 6:00 6:30 0.5 Pre-job safety meeting for BHA and monitor well 6:30 10:00 3.5 Lay down HWDP and BHA as per Sperry DD,Download Sperry MWD and clear Floor of BHA. 10:00 12:00 2.0 Flush stack and pull wear ring,set test plug and change top rams to T 12:00 14:00 2.0 Change top rams from 3 1/2 by 6 var.to 7"casing rams.Set test plug and RU test joint. 14:00 14:30 0.5 Test 7"rams to 2501640006 for 5 minutes low and 5 minutes high. 14:30 16:30 2.0 Finish rigging up floor for casing run.Pick up T landing joint and Vetco Mandrel hanger and make Dummy run and mark LJ 0 depth. • 16:30 23:00 6.5 Run T 260 L80 BTC-M casing.Dope thread with BOL 2000.Fill every joint and circulate every 10th.joint down ig 3 minutes SOS.TO to 5400/I-. 23:00 23:30 0.5 Circulate 1.5 BU at 3051'0 5BPM with 485 PSI.UWT=85K,SOW=75K 23:30 0:00 0.5 Pont 7"264 L80 BTC-M casing.Dope thread with BOL 2000.Fill every joint and circulate every 10th.joint down©3 minutes SOS.TQ to 5400 FP; CBU every 30 joints ran while circulating down 4 joints. TOTAL HRS 24.0 MORNING Running T casing,started loosing returns while circulating joint down g 5329',pushing mud away on slack o0,adding LCM UPDATE to system and continue running casing to get below loss zone.No hole drag at present time. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 15:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP("F) N/A 86 RIG UP/DOWN 55.0 BRPC 3 DEPTH/TVD(S) 9120 9120 DRILLING 119.5 ACS I 2 MUD WEIGHT/TEMP(Ib/gal) 10.8/84 10.9/87 REAMING 1.5 ASRC SOLIDS(%Vit) 13 13 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) ,, 55 55 CIRCULATE 8 CONDITION 2.0 22.0 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 8.5 66.0 CH2MHILL R600IR300 71/48 62/42 SERVICE RIG 2.5 FAIRWEATHER 1 . R200IR100 39/28 33/24 DOWNTIME 16.5 HALLIBURTON 8 R6/R3 10/9 10/9 SLIP/CUT DRILLING LINE 1,0 MISWACO 2 PV(cP) 23 20 WIRELINE SURVEYS NABORS 30 YP(I12/10O It 25 22 LOGGING PEAK 8 OILIWATER(%Vit) 82 82 RUN CASING/CEMENT 9.0 28.0 SCHLUMBERGER 108/10m/30m GELS(Ib1100ft 10/22/31 10122/33 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cc/30min) 5.6 5.6 NIPPLE ON UP/DOWN BOP% 4.0 19.5 VETCO GRAY 2 HTHP FLUID LOSS(cc/30min) 0 0 TEST BOP's _ 0.5 10.0 WEATHERFORD CAKE APT/HT(1/32') 1 1 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) 13 13 PLUG BACK CATERING 10 CORRECT SOLIDS(%Vol) 4.6 2.9 SQUEEZE CEMENT OTHER OIL(%Vit) 6 6 FISHING UNCORR WATER(%Vol) 82 82 DIRECTIONAL WORK OIL/WATER RATIO 0 0 MISCELLANEOUS ALKAL MUD(Porn) 1.2 1.4 MEETINGS 3.5 CL WHOLE MUD(mg/L) 1500 46000 WELL CONTROL SALT(%Wt) 3 3 COMPLETION 4.1' I LIME(Ib/bbl) 0 0 COMPLETION(STANDBY) TOTAL 70 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) .25 .25 RIG FUEL ECD(ppg) 10.95 10.95 CAMP FUEL FLOW IN(gpm) 0 0 SUPPORT FUEL PUMP PRES(psi) 0 0 TOTAL FUEL ROP(FPH) _ 0 0 POT WATER MBE(18/801) 12 23 HSE pH/TEMP 9.3/84 9.4/87 SAFETY MEETINGS BEAR SIGHTINGS: None Pf1MI(0) 1.0/2.75 1.3 running casing_ I OTHER WILDLIFE: None CHLORIDES(mglL) 45500 3.0 ACCIDENTS: None SPILLS: None HARDNESS(Ca++) 100 120 WEATHER DAILY HIGH I 0 I DAILY LOW I -3 CASING OD WE GRADE MD TVD MAX WIND/DIR 20/NE MAX WIND CHILL -25 Conductor 94 A56 PRECIPITATION VISIBILTY 1 mile Surface 9-5/8 40 L-80 3069 2448 COMMENTS j BHA DESCRIPTION BHA#2 LENGTH 651.79 BHA.WT AIR 42.63 BHA WT.MUD 36.33 HRS.ON JARS 55.7 ROT WT. 140 P.0 WT 200 S.O WT. 118 TORQUE 10 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 2 8.5 _ Hughes PDC 0D505X 7017337 5 x 13,2x 14 3,082 9,120 6,038 55.7 35 186 108 283 108 _ 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,3016 N 108 3,082 2,974 24.4 20 143 122 BIT NO. 2 INNER I 2 OUTERI 3 DULL CT I LOC I T I SEAL I x I GAUGE I 1 I OTHER ILN I PfrRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 96 2 EMSCO F-1000 5.000 10.000 96 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES OAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 280 9,120 TRIP: FORMATION: #2 52 370 9,120 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I E/W V.SECTION DLS /N,V\,\. DRILLING REPk,..t' Brookr Range oerroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: 1 7ES • RPT DATE:February 14,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby AFE#:640038 I API#:I50.103-20652-00-00 DFS:12 DRILLING SUPERVISOR 2:Dan Shearer LEASE:390680 REPORT NO:18 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:15 TOOLPUSHER 2:Brian Tiedman ELEV: RKB: 29 LAST BOP TEST:2/6/12 RIG PHONE#:907-865.9900 MD:9,120 ND: 6,050 NEXT BOP TEST:2/13/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 24 HR FTG: HRS DRLG: 1 CSGHD: I AFE AMOUNT: $13,504,000 AFE CUM. $7,870,146 24 HOUR Ran and cemented 7"266 L80,BTC-M casing.Casing shoe set @ 9110'MD 8 6044'TVD SUMMARY ACTIVITY Test BOPE,Lay down 8500'5'drill pipe and PU-9000'4"HT-40 drill pipe PLANNED FROM TO NRS OPERATIONS 0:00 12:00 12.0 Continue to run 7',26#L80 BTC-M Casing.Dope with BOL 2000 casing dope and torque to 5400 FP.Started loosing returns/5 5329', Continue to run casing with losses-40 SPH filling each joint and trying to establish full circulation every 10 joints with no sucess. 12:00 13:00 1.0 Continue to run casing to TD with no hole drag,PU landing It and land mandrel hanger on depth with casing shoe(9110'MD,6044'ND 13:00 13:30 0.5 Lay down Franks tool and make up cement head and rig cement lines.Try to establish full circulation with no sucess. 13:30 14:00 0.5 PJSM with Cement crew and batch up Spacer. 14:00 16:30 2.5/Pump 5 blot water and test linws to 4500#,mix and pump 30 bbis HOW CO Dual spacer 11.5 ppg,drop bottom plug,pump 67 bbls Premium G tail /) ✓7 1 t slorry©15.8 ppg,Drop top plug and chase With 10 bits water followed by 337 bhis 10.8 mud.Bumped plug at calculated stirs and pressured to } ( G S 2500#.Bleed off and check floats,OK.Partial returns during displacement and cement lib observed on chart once cement left shoe. ,) o 16:30 17:00 0.5 Pressure test casing to 4000 psi for 30 mirutes.Good test. 17:00 19:00 2.0 Rig down casing running tools and clear floor of all casing equipment 19:00 20:00 1.0 PU Johnny Wacker and jet stack wan water for packoff installation. 20:00 21:00 1.0 PU Volvo packoff running tool and install packoff as per Vetco procedure.Test to 5000 psi,good test,LD packoff tool 21:00 22:30 1.5 Change top rams from 7"to 3 1/2'x 6'variables and change TO Saver Sub to 4"HT-40. 22:30 23:30 1.0 Install Vatco[est plug,PU 4"lest joint and RU BOPE testing equipment. 23:30 0:00 0.5 Test BOPE 250 psi low/4000 psi hg,.Witness of test waived by Lou Grimaldi.AOGCC,Test witnessed by TP's Brian Tiedemann&Kevin Barr 8 WSL Bill Bixby Bar TOTAL HRS 24.0 MORNING'Testing BOPE UPDATE • MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21.00 12:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) N/A 0 RIG UP/DOWN 55.0 BRPC 3 DEPTH/TVD(ft) 9120 9120 DRILLING 119,5 ACS 2 MUD WEIGHT/TEMP(Ib/gal) 10,5/66 10.8/73 REAMING 1.5 ASRC SOLIDS(%Vit) 13 13.5 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 52 57 CIRCULATE&CONDITION 22.0 BEACON 2 RHEOLOGY TEMPrF) 120 120 TRIPPING 2.0 68.0 CH2MHILL R600/R300 31/23 60/40 SERVICE RIG 2.5 FAIRWEATHER 1 R200/R100 19/13 32/23 DOWNTIME 18.5 HALLIBURTON 10 R6/R3 8/7 9/9 SLIP/CUT DRILLING LINE 1.0 MISWACO 2 PV(cP) 8 20 WIRELINE SURVEYS NABORS 29 YP(IN100 to 15 20 LOGGING PEAK 8 OIL/WATER(%Vol) 82 91 RUN CASING/CEMENT 19.0 47.0 SCHLUMBERGER 10s/1Orn/3Om GELS(Ib/100ft° 6/7/7 10/24/36 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cc/30min) 7.5 5.6 NIPPLE ON UP/DOWN BOP's 1.5 21.0 VETCO GRAY 1 HTHP FLUID LOSS(cc/30min) 0 0 TEST BOP's 1.5 11.5 WEATHERFORD CAKE APT/HT(1/32') 1 10 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Voll 13 13.5 PLUG BACK CATERING 10 CORRECT SOLIDS(%Vol) 54 5.6 SQUEEZE CEMENT OTHER OIL(%Vol) 5 6 FISHING UNCORR WATER(%Vit) 82 81 DIRECTIONAL WORK OIL/WATER RATIO 0 0 MISCELLANEOUS ALKAL MUD(Porn) 1 22 MEETINGS _ 3.5 CL WHOLE MUD(rrgl) 25000 35000 WELL CONTROL SALT(%Wt) 22 3 COMPLETION 4.0 LIME(Mrbl) 0 0 COMPLETION(STANDBY) TOTAL 70 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 25 25 RIG FUEL ECD(ppg) 10.95 10.95 CAMP FUEL FLOW IN(gem) 0 0 SUPPORT FUEL PUMP PRES(psi) 0 0 TOTAL FUEL ROP(FPH) 0 0 POT WATER - MBT(bbbl) 7.5 12.75 HSE pH/TEMP 9.4166 9.3/73 _ SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) .912 2/3.2 casing and cementing I OTHER WILDLIFE: none CHLORIDES(rrg/L) 1500 1500 ACCIDENTS: none SPILLS: none HARDNESS(Ca.) 80 120 WEATHER DAILY HIGH I 4.1 I DAILY LOW I -14 __ CASING OD WT GRADE MD TVD MAXWIND/DIR 16/NE MAX WIND CHILL -27 Conductor 94 A56 PRECIPITATION VISIBILTY 3 miles Surface 9-5/8 40 L-60 3069 2448 COMMENTS Intermediate 7 26 L80 9110 6044 BHA i DESCRIPTION BHA#2 LENGTH 651.79 BHA.WT AIR 42.63 _____ BHA WT.MUD 36.33 HRD .ON JARS 55.7 _-.. • r • ROT WT. 140 P.0 WT 208 S.O WT. 118 TORQUE 10 BIT DATA NO. SIZE MAKE _ TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANNNEL) DC(ANNNEL) 2 8.5 Hughes PDC QD505X 7017337 5 a 13,2x 14 3,082 9,120 6,038 55.7 35 186 108 283 108 1 12.25 Hughes MU Tooth VM-3 5204493 1014.3x16 N 108 3082 2.974 24.4 20 143 122 BIT NO. 2 INNER I 2 OUTER' 3 DULL CT I LOC I T 1 SEAL I X I GAUGE I 1 I OTHER ILN/PPIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT MHP PUMP HHP 1 EMSCO F-1000 5.00G 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 280 9,120 TRIP: FORMATION: #2 52 370 9,120 SURVEY DATA MD ANGLE AZIMUTH ND N/S I COORDINATES I ENV V.SECTION DLS • ,/N'>/\.' DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 15,2012 SPUD DATE:212/12 DRILLING SUPERVISOR 1:Bill Bixby AFE#:640038 I API 10:150-103-20652-00-00 DFS:13 DRILLING SUPERVISOR 2:Dan Shearer LEASE:390680 REPORT NO:17 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:16 TOOLPUSHER 2:Brian Tiedemann ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD:9,120 TVD: 6,050 NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 4 a0m, 24 HR FTG: HRS DRLG: I CSOHD: I 26 AFE AMOUNT: $13,504,000 AFE CUM. 58,305,269 24 HOUR Test ROPE,lay down 5"drill pipe from mouse hole and load shed with 4"drill pipe,Freeze protected OA with 67 bbls diesel. SUMMARY ACTIVITY --"ck up BHA and single in with 4'drill pipe.Change mud system to 12 9 ppg Flo Pro,drill out and LOT PLANNED FROM TO 1 HRS OPERATIONS 0.00 6:30 6.5 Test HOPE as per procedure to 250 psi low for 5 minutes,4000 psi high for 5 minutes.Witness of ROPE test waived by AOGCC inspector Lou Grimaldi.Test witnessed by W SL.Bill Bixby and TP's Brian Tiedemann and Kevin Barr.Annular tested to 250 psi low and 3500 psi high.BOP tested with 4"test joint.Top Drive air actuated valve failed low pressure test.Changed out and retested Oft.Closing times as hollows • Annular=25 sec,TPR=6 sec,Blinds=14 sec,BPR=6 sec,HCR Ki9=1 sec,HCR choke=l sec, 6:30 8:00 1.5 PJSM,Rig down testing tools,clean floor and cellar and install wear bushing. 8:00 1200 4.0 Lay down 5'drill pipe from derrick using auxiliary mouse hole. 12:00 21:00 9.0 Lay down 5"drill pipe from derrick using auxiliary mouse hole.Freeze protect OA with Little Red Services by pumping 67 obis of 92 degree diesel Q 2 BPM with ICP of 225 psi and FCP 011050 psi.OA shut in with 350 PSI. 21:00 0:00 3.0 Load shred with 4'HT-40 DP and strap and work same. TOTAL HRS 24.0 MORNING Picking up 4"drill pipe 1 x 1 frau pipe shed UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME _ 21:00 15:00 ACTIVITY DAILY CUM HRS COMPANY I NUMBER FLOWLINE TEMP('F) _ N/A 0 RIG UP/DOWN 1.5 56.5 BRPC 3 DEPTH/TVD(ft) 9120/6005 9123 DRILLING 119.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 10.5/66 10.8/Down Hole REAMING 1.5 ASRC SOLIDS(%Vol) 13 13.5 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 52 57 CIRCULATE 8 CONDITION 220 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 16.0 84.0 CH2MHILL R600/R300 _ 31/23 60140 SERVICE RIG 2.5 FAIRWEATHER i R200/R100 19/13 32/23 DOWNTIME 16.5 HALLIBURTON 9 R6/R3 8/7 9/9 SLIP/CUT DRILLING LINE 1.0 MISWACO 2 PV(cP) 8 20 WIRELINE SURVEYS NABORS 29 YP(b/10310 15 20 LOGGING PEAK 8 OIUWATER(%Vol) 82 81 RUN CASING/CEMENT 47.0 SCHLUMBERGER • lOs/10m/30m GELS(lb/10002) 617/7 10/24/36 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cc/30min) 7.5 5.6 NIPPLE ON UP/DOWN BOP'$ 21.0 VETCO GRAY 2 HTHP FLUID LOSS(cc/30mdn) N/A N/A TEST BOP'$ 6.5 15.0 W EATHERFORD CAKE APT/HT(1/32') 1 1 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) 13 13.5 PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) 5.4 6 SQUEEZE CEMENT OTHER OIL(%Vol) 5 6 FISHING UNCORR WATER(%Vol) 82 81 DIRECTIONAL WORK OIL/WATER RATIO0 0 MISCELLANEOUS • ALKAL MUD(Porn) 1 2.2 MEETINGS 3.5 CL WHOLE MUDm ( gA.) 25000 35000 WELL CONTROL SALT(%Wt) 3 3 COMPLETION 4.0 LIME(Ib/bbl) 0 0 COMPLETION(STANDBY) TOTAL 71 EMUL STABILITY0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 25 .25 RIG FUEL ECD(ppg) 10.95 10.95 CAMP FUEL FLOW IN(gpm) 0 0 SUPPORT FUEL PUMP PRES(psi) 0 0 TOTAL FUEL ROP(FPH) 0 0 POT WATER MBT(Ib/bbl) 7.5 12.75 HSE pH/TEMP 9.4/66 9.3/73 SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) .90/2.0 2/3.2 waking with 3rd party I OTHER WILDLIFE: none CHLORIDES(mg/L) 1500 1500 ACCIDENTS: none SPILLS: none HARDNESS(Ca++) 80 12( WEATHER DAILY HIGH I -1 I DAILY LOW I -13 CASING OD WT GRADE MD TVD MAX WIND/DIR 7/SE MAX WIND CHILL -29 Conductor 94 A51 PRECIPITATION VISIBILTY .25 Surface 40 L-80 COMMENTS Intermediate 7 26 L80 9110 6044 BHA DESCRIPTION BHA#2 - -_- LENGTH 651.79 BHA.WT AIR 42.63 BHA WT.MUD 36.33 HRS.ON JARS 55.7 ROT WT. 140 P.0 WT 200 S.O WT. 118 TORQUE 10 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) I DC(ANN.NEL) 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 3,082 9,120 6,038 55,7 35 186 108 283 111 108 1 12.25 Hughes Mill Tooth VM-3 5204493 1014,3x16 N 108 3,082 2,974 24.4 20 143 122 BIT NO. 2 INNER I 2 OUTERI 3 DULL CT I LOCI T I SEAL I X I GAUGE I I I OTHER ILN/PhIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 96 2 EMSCO F-1000 5000 10000 96 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 TRIP: FORMATION: #2 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I E/W V.SECTION DLS /N*, "\ DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 16,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bill Bixby AFE S:640038 I API#:150.103.20652-00-00 DFS:14 DRILLING SUPERVISOR 2:Dan Shearer LEASE:390680 REPORT NO:18 TOOLPUSHER 1:Clave Coyne FIELD: DOL:17 TOOLPUSHER 2:Brian Tiedemann ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD: TVD: NEXT BOP TEST:2/2212012 LAST SHOE TEST DATE: 02/07/2012 SHOE TEST: 4,000 24 HR FTG: HRS DRLG: I CSGHD: I 26 AFE AMOUNT: $13,504,000 AFE CUM. $8,784,746 24 HOUR load shed with 4'drill pipe,pick up BHA#3 and single in with 4'DP. SUMMARY ACTIVITY DNI shoe hack and 20'new hole.obtain LOT and scratch and sniff drill KUP sands PLANNED FROM TO HRS OPERATIONS 0:00 4:30 4.5 Load Shed with 4'HT-40 Drill Pipe and work same 4:30 7:00 2.5 PJSM then pick up mule shole and 30 jts Drill Pipe and stand back same. 7:00 13:30 6.5 PJSM with Sperry and PU&test 4 3/4"BHA as per Sperry Rep's 13:30 0:00 10.5 Single in 4"Drill pipe on BHA#Milling pipe and checking MWD every 90 joints. TOTAL HRS 24,0 MORNING CBU and change mud system to 12.9 ppg FLO-PRO UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:00 14:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP CF) N/A 0 RIG UP/DOWN 56.5 BRPC 3 DEPTH/TVD(ft) 9120/6005 9120/6005 DRILLING 119.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 12.9/73 12.9/77 REAMING 1.5 ASRC SOLIDS(%Vol) 21.5 21.2 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 69 66 CIRCULATE 8,CONDITION 22.0 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 24.0 108.0 CH2MHILL R600/R300 76/52 74/52 SERVICE RIG 2.5 FAIRWEATHER 1 • R200/R100 46/32 45/32 DOWNTIME 16.5 HALLIBURTON 9 R6/R3 15/13 14/12 SLIP/CUT DRILLING LINE 1.0 MISWACO 2 PV(cP) 24 22 WIRELINE SURVEYS NABORS 29 YP(5/100 tt�) 28 30 LOGGING PEAK 8 OILIWATER(%Voll) 79 77 RUN CASING/CEMENT 47.0 SCHLUMBERGER 10s/10m/30m GELS(5/10011° 13/20/26 13/19/26 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cd/30mIn) 8 8 NIPPLE ON UP/DOWN BOPS 21.0 VETCO GRAY 1 HTHP FLUID LOSS(cc/3OmIn) N/A 0 TEST BOP% 18.0 WEATHERFORD I CAKE APT/HT(1/37) 2 2 DRILL STEM TEST BEAR WATCH --�_--- 1 UNC RET SOLIDS(%Vol) 21.5 21.2 PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) 0.7 12.9 SQUEEZE CEMENT OTHER OIL(%Vol) 2 1.5 FISHING UNCORR WATER(%Vol) 77 77 DIRECTIONAL WORK OIL/WATER RATIO 0 0 MISCELLANEOUS ALKAL MUD(Pont) _ 3.8 3.8 MEETINGS 3.5 CL WHOLE MUD(mg/L) 155000 155000 WELL CONTROL SALT(%WI) 7.8 8 COMPLETION 4.0 LIME(b/bbl) 0 0 COMPLETION(STANDBY) TOTAL 69 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. / SAND(%Vol) .10 .10 RIG FUEL // ECD(ppg) 12.95 12.95 CAMP FUEL FLOW IN(gpm) 0 0 SUPPORT FUEL PUMP PRES(psi) 0 0 TOTAL FUEL • ROP(FPH) 0 0 POT WATER MBT(Ib/bbl) 0 0 HSE pH/TEMP 9.8/77 9.8/77 SAFETY MEETINGS BEAR SIGHTINGS: None PflMf(0) 2.9/6.8 2.9/6.8 PU drill pipe il OTHER WILDLIFE: None CHLORIDES(mg/L) 155000 155000 ACCIDENTS: None SPILLS: None HARDNESS(Ca««) 15 .15 WEATHER DAILY HIGH I +5 I _DAILY LOW I -10 CASING OD WT GRADE MD TVD MAX WIND/DIR 7/N MAX WIND CHILL -24 Conductor 94 A56 PRECIPITATION IVISIBILTY Surface 40 L-80 COMMENTS Intermediate 7 26 L80 9110 6044 BHA DESCRIPTION BHA#3 LENGTH 396.28 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS ROT WT. P.0 WT S.0 WT. TORQUE BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC OD505FHX 7028065 4 x11,1 x 10 9,120 2 8.5 Hughes PDC QD505X 7017337 5 x 13.20 14 N 3,082 9.120 6,038 55.7 35 186 108 283 369 BIT NO 2 INNER I 2 °UTERI 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHERjN/Pr4RP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP _ 1 EMSCO F-1000 5.000 10.000 96 2 EMSCO F-1000 5.000 10.000 96 • PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 TRIP: FORMATION: #2 SURVEY DATA MD ANGLE AZIMUTH ND N/S COORDINATES I ENV V.SECTION DLS /N//\•\, DRILLING REPORT Brpplm Range Petroleum Cxpot0 rcn WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: RPT DATE:February 17,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bit r,':, AFE/:640038 I API#:150-103-20652-00-00 DFS:15 DRILLING SUPERVISOR 2:Dar/ ,:.:rot __ LEASE:390680 REPORT NO:19 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:18 TOOLPUSHER 2:Brian Tiede m. ELEV: RIM: 29 LAST BOP TEST:2/15/12 RIG PHONE M.907-865-9900 MD:9,202 ND: 6510 NEXT BOP TEST:2/222012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG:96 HRS DRLD: I CSGHD:I 28 AFE AMOUNT: $13,504,000 AFE CUM. 09085,258 24 HOUR Drilled out shoe track,preform LOT to 16.4 pig.end dna KUP C with min6nal bases SUMMARY ACTIVITY DMI to expected TD of 9340'CBU 8 Back Ream out to r Shce PLANNED FROM TO HRS OPERATIONS 0:00 1-30 1.5 Continue to pick up dill pile to 8775 FN pipe every 90 Its,UWT=150K,SOW=80K 1:30 3-00 1.5 PJSM and slip and cut 136'Milling pne.Set block height and C-O-M. 3:00 3:30 0.5 Service Drawworks,Blocks end Crown 3:30 4:00 0.5 Wash and ream from 8775to 9018'GPM=150,PSI=1550 4:00 5:30 1.5 Drill Float collar and Cement from 9016'to 9030'WOB=8K,PSI on=2100,PSI 06=2060,RPM=50,TQ=9.3K UWT=180K,SOW=85K,ROT=104K 5:30 8:00 2.5 CBU and change out mud from 10.8 ppg.Kla-Shield to 12.8 ppg FLO-PRO 8:00 11:30 3.5 Drilling content from 9013'to shoe dj 9100'and dean out hole to 9110' 11:30 12:00 0.5 DMI new hob trap 9110'to 9128'WOB=35K,GPM=200,PSI=2415,RPM=50,T1::M7.4K,ART=.89,Jar Hre=11.61,Bit=.89 12:00 12:30 0.5 Ddg F/9128'to 9134,WOB=35,GPM=200,P51=2400,RPM=50,TO 7.3 Z 12:30 13:30 1.0 CBU for LOT '4.rt 13:30 14:00 0.5 Complete LOT/5 6044'ND,9134'MD,MWT=12.8.LOP=1134�si,EMW=16.4 ppd..Obtain dean hob ECD readkgs of 15.15 and Sbw pump rates both 14:00 20:00 6.0 D51Erg from 9134'to 9177 ROP Increase(Nan 10 fph to 43 fph a 9172 20:00 0:00 4.0 CBU sample,loss rate to 60 BPH,added safe curb 500 and cut punas to 175 GPM from 225 GPM,losses stopped.Drilled 10'sections 8 CBU each 175 GPM with no losses.ROP 80 to 140 FPH with 8 to 10K and BU gas to 458 units @ each BU.Drilled from 9172 to 9202'with avg ROP-90 FPH. / SOW=80k,RWT=95K,TQ=9.8K,RPM=11X1,AECD=14.94,ART=4.73,AST=0,ADT�.73,Bit Hre=5.62,Jars=18.73 Hrs.Total Mud Loss �// for Tour=60BBLS.Mud loss for Interval=80 BBLS.00:00 Depth 9202 TOTAL HRS 24.9 MORNING'Drilling ahead @ 9261'with avg ROP-12 FPH UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE ' TIME 21:00 19:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 82 80 RIG UP/DOWN 50.5 BRPC 5 DEPTH/TVD(ft) 9192/8093 9782 DRILLING 16.0 735.5 ACS 2 MUD WEIGHT/TEMP(b/gal) 12.8/80 12.9/78 REAMING 0.5 2.0 ASRC SOLIDS(%Vol) 22 22 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 70 69 CIRCULATE 8 CONDITION 3.5 25.5 BEACON 2 RHEOLOGY TEMP(°F) 120 120 TRIPPING 1.5 109.5 CH2MHILL R6001R300 86/60 71/50 SERVICE RIG 0.5 3.0 FAIRWEATHER 1 R200IR100 49/34 43/30 DOWNTIME 16.5 HALLIBURTON 8 R6/R3 12/9 13/11 SLIP/CUT DRILLING UNE 1.5 2.5 MISWACO 2 PV(cP) 26 21 WIRELINE SURVEYS NABORS 29 YP(6/100 ft') 34 29 LOGGING PEAK 8 OIL/WATER(%Vol) 76 76 RUN CASING/CEMENT 47.0 SCHLUMBERGER 10e110m/30m GELS(6/10032) 11/18/25 12/18/26 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cd3pNn) 3.6 4 NIPPLE ON UP/DOWN BOP's 21.0 VETCO GRAY 2 HTHP FLUID LOSS(cd30rrn) NIA WA TEST BOP's 18.0 WEATHERFORD CAKE APT/HT(1/3?) 1 2 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) 22 22 PLUG BACK CATERING 77 CORRECT SOLIDS(%Vol) 4.8 4,2 SQUEEZE CEMENT OTHER OIL(%Vol) 2 2 FISHING UNCORR WATER(%Vol) 78 76 DIRECTIONAL WORK OIL/WATER RATIO 0 0 MISCELLANEOUS ALKAL MUD(Pan) 3.2 3.6 MEETINGS 3.5 CL WHOLE MUD(ng/L) 80000 152000 WELL CONTROL SALT(%Wt) 3.1 3 COMPLETION 0.5 4.5 LIME(lb/bbl) 0 0 COMPLETION(STANDBY) TOTAL 72 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAYS INV. SAND(%Vol) .10 0 RIG FUEL ECD(ppg) 14.79 14.79 CAMP FUEL FLOW IN(gpm) 174 174 SUPPORT FUEL PUMP PRES(psi) 2140 2140 TOTAL FUEL ROP(FPH) 5.8 5.8 POT WATER MBT(b/bb) 3.75 2 HSE pH/TEMP 9.9/80 9.3/76 SAFETY MEETINGS BEAR SIGHTINGS: None - Pf/M1(0) 2.8/6.8 2.8/6.40 Wel Control I OTHER WILDLIFE: --- None CHLORIDES(ng/L) 80000 152000 ACCIDENTS: None SPILLS: None HARDNESS(Ca•+) 60 0 WEATHER DAILY HIGH I -9 I DAILY LOW I -18 CASING OD WT GRADE MD TVD MAXWIND/DIR 10/NE IMAX WINDCHILL -38 Conductor 94 A56 PRECIPITATION VISIBILTY .5 Surface 40 L-80 COMMENTS Intermediate 7 26 L80 9110 6044 BHA DESCRIPTION BHA 83 LENGTH 396.28 /314A.INT AIR 15.73 BHA WT.MUD HRS.ON JARS 16.37 ROT WT, 95000 P,U WT 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET FIRS WOB RPM ROP DP(ANN.NEL) DC(ANNNEL) 3 6.125 Baker Hughes PDC OD505FHX 7028065 4 x 11,1 x 10 9,120 t; 2 8.5 Hughes POC QD505X 7017337 5x 73.2x 14 N 3.082 9,720 6,038 55.7 .1/ 186 108 283 369 BIT NO. 2 INNER I 2 OUTER 3 DULL CT I LOC I T I SEAL I X I GAUGE I I OTHER ILN/PhIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI _GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 76 2150 175 2.45 98 14.8 2 EMSCO F-1000 5.000 10.000 _ 76 2200 175 2.45 96 15 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG. 50 MAX. 358 REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 980 9,140 TRIP: FORMATION: #2 52 1,400 9,140 SURVEY DATA MD ANGLE --- AZIMUTH ND NIB j COORDINATES I E/FP V.SECTION DIS / " ` DRILLING REPORT Brooks Range Petroleum Corpora.,..., WELL:Mustang#1 _ __ CONTRACTOR:Nabors Alaska Drilling I RIG: RPT DATE:February 18,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Bib Bixby AFE is 640038 I API 1:150-103-20652.00.00 DFS:16 DRILLING SUPERVISOR 2:Dan Shearer LEASE:390680 REPORT NO:20 TOOLPUSHER 1:Cleve Coyne _ FIELD: DOL:19 TOOLPUSHER 2:Brian Tiedemann ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD:9,315 ND: 6,170 NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 4,000 24 HR FTG:113 HRS DRLG: I CSGHD:I 28 AFE AMOUNT: $13,504,000 AFE CUM. $9.573,687 24 HOUR TD well @9315' SUMMARY ACTIVITY Trip out of hole and lay down BHA for dumb iron clean out assy. PLANNED FROM TO HRS OPERATIONS 0:00 4:00 4.0 Dnp ahead in 10'intervals F/9202'CBU after each 10'to clear annulus of gas.9202-9212=298 units @ BUS,9217-9222'=150 units(91 BUS ROP decreased from-BO FPH to-20 FPH @ 9224'.9227-9232'=140 units®BUS.Background gas-80 units. 4:00 10:00 6.0 Drlg F/9232'to 9305'WOB 15K,GPM=200,2656#On,2450#05.104 TO,UW7=155K,SOW=80K,RWT=100K, Drilled into loss zone(2 9288',Ioss rate @ 250 BPH 91 200 GPM,180 BPH 91 150 GPM.Drilled to 9305'with-150 BPH losses.WOH=25K.150GPM.1614 PSI 10:00 12:00 2.0 Pump out of hole to 7'casirg shoe.700 bbls lost to well This lour. 12:00 12:30 0.5 Pump out of hole to 8189 9177 GPM with 822 Psi 12:30 14:30 2.0 Take slow pump rates and take on 260 blots 12.7 Flo-Pro while crculaorg over top of hole.Hole static with no pump,Build mud as per mud engineer. 14:30 15:30 1.0 RIH F/8189 to 9305' 15:30 16:30 1.0 Orlg F/9305'to 9315'Call TD 91 9315'. 16:30 18:00 1.5 Pump out of hole F/9315 to 9037 NI 193 GPM 18:00 20:30 2.5 Monitor wet 9 90321 while weighting up mud In pits to 12.7 ppg.Hole static while not pumping 20:30 22:00 1.5 Pump out of hole to 8100'watching for swab/surge 22:00 23:00 1.0 Attempt to put with out pump-swab,push mud away on down stroke,pump out looking for break even pump rate. 23:00 0:00 1.0 Pump out of hole to avoid swabbing Pulling @ 70 9./min.w8h pump 088 GPM.Mud loss for tour=323 blots. TOTAL HRS 24.0 MORNING UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 21:30 16:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) N/A 0 RIG UP/DOWN 56,5 BRPC 3 DEPTH/TVD(S) 9315/6162 9315/6162 DRILLING 11.0 146.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 12.7154 12.7/78 REAMING 2.0 ASRC SOLIDS(%Vol) 20 12 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 51 66 CIRCULATE&CONDITION 2.0 27.5 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 11.0 120.5 CH2MHILL R600IR300 54/37 75152 SERVICE RIG 3.0 FAIRWEATHER 1 R200IR100 3123 47/32 DOWNTIME 16.5 HALLIBURTON 9 R6/R3 1018 12/9 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 • PV(cP) 17 23 WIRELINE SURVEYS NABORS 29 YP(1/100 94 20 29 LOGGING PEAK 8 OIL/WATER(%Vol) 80 75 RUN CASING/CEMENT 47.0 SCHLUMBERGER 10s/10m/30m GELS(1/100Au 9/11/11 11/17/25 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cr/30min) 4.8 3.6 NIPPLE ON UP/DOWN BOP% 21.0 VETCO GRAY HTHP FLUID LOSS(cc/30min) N/A N/A TEST BOPS 18.0 WEATHERFORD r CAKE APT/HT(1/32') 1 1 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) 20 23 PLUG BACK CATERING 11 CORRECT SOUDS(%Vol) 13.3 16.2 SQUEEZE CEMENT OTHER OIL(%Vol) 0 2 FISHING _ - - UNCORR WATER(%Vol) 80 75 DIRECTIONAL WORK OIUWATER RATIO 0 0 MISCELLANEOUS AU(AL MUD(Porn) 1.4 2.5 MEETINGS 3.5 CL WHOLE MUD(mg/L) 60000 110000 WELL CONTROL SALT(%Wt) 3.4 3 COMPLETION 4.5 • LIME(Ib/bbl) 0 0 COMPLETION(STANDBY) TOTAL 89 EMUL STABILITY 0 0 CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 0 0 RIG FUEL ECD(ppg) 13.92 13.92 CAMP FUEL FLOW IN(gpm) 157 _ 157 SUPPORT FUEL PUMP PRES(psi) 2140 2140 TOTAL FUEL i ROP(FPH) 11.2 11.2 POT WATER MBT(Ib/bd) 0 0 NSE pH/TEMP 9.6/54 9.6/78 SAFETY MEETINGS BEAR SIGHTINGS: None Pf/Mf(0) 1.2/6.0 2.816,8 hand injuries I OTHER WILDLIFE: None __ CHLORIDES(mg/L) 60000 110000 ACCIDENTS: None SPILLS: None HARDNESS(Ca++) 60 40 WEATHER DAILY HIGH I '4 I DAILY LOW I -21 CASING OD WT GRADE MD TVD MAX WINDIDIR 15/NE MAX WIND CHILL -38 Conductor 94 A56 PRECIPITATION VISIBILTY 3 Surface 40 480 COMMENTS _ Intermediate 7 26 L80 9110 6044 BHA DESCRIPTION BHA#3 LENGTH 396.28 BHA WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 5.0 WT- 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes POC QD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 8,038 55,7 35 186 108 283 369 BIT NO. 2 INNER I 2 OUTERI 3 DULL CT I LOC I T I SEAL I X I GAUGE! 1 I OTHER ILN/Pf1RP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 75 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: 95 MAX: 458 REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL #1 35 880 8.189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD ANGLE AZIMUTH ND N/S I COORDINATES I E/W V.SECTION OLS 9,122 51.64 32.97 6,051 -834.24 8073.27 5,001.8 4.4 ..__._ 9,216 52.04 32.61 --- 6,109 -772.29 6113.17 5,065.8 0.5 /‘,/\, DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7ES RPT DATE:February 19,2012 SPUD DATE:2/2/12 _ DRILLING SUPERVISOR 7:Dan Shearer AFE 0:640038 I API 10150-103-20652.00-00 DFS:17 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:21 TOOLPUSHER 1:Cleve Coyne _ FIELD: DOL:20 TOOLPUSHER 2:Brian Tiedemann/Kevin Ban ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE 10 907-865-9900 MD: TVD: NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLG: I CSGHD: I 26 AFE AMOUNT: $13604,000 AFE CUM. $9,982,134 24 HOUR Picking up BHA SUMMARY ACTIVITY RIH,spot LCM pill,POOH,pick up Mule Shoe,RIH,Lay in cement plug PLANNED FROM TO HRS OPERATIONS 0:00 6:00 6.0 POM.Pump out due to swabbing f/7325-2933'.70 gpm/530 psi70 fpm. 6:00 7:00 1.0 Monitor well f/1 hr prior to pulling to BHA.Wellborn breathing noted. 7:00 8:00 1.0 Cow&cord to check Btms up.170 gpm/1310 psi.Mud wt out 12.1 ppg. 8:00 8:30 0.5 PJSM.Prep to RIM to condition mud wt.BID Top Drive 8:30 10:00 1.5 RIH V 2933-5567 red.70 fph.losing 4 bbl/5 std. 10:00 12:00 2.0 Circ 8 Cond.84 gpm/796 psi.Losses 350 blots/tour.Mud wt out 12.6 ppg. 12:00 12:30 0.5 Monitor well.Slight gain fl breathing. 12:30 21:30 9.0 Attpt to POH on Elevators,Swab up/surge down noted.Pump out of hole.POH 1/1429'. 21:30 22:00 0.5 CBU monitor returns.Mud wt out 12.7 ppg. 22:00 0:00 2.0 Pump OOH t/BHA @ 583'md.75 gpm/720 psi/40 RPM.103 blots bases on tour. TOTAL MRS 24.0 - _-- - - - -�- MORNING Lay down BHA,download MWD UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 04:00 13'0) ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) r✓a 70 RIG UP/DOWN 56.5 BRPC 3 DEPTH/TVD(ft) 9315/6162 9315/6162 DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(E/gel) 12.9(058 12.7@70 REAMING 2.0 ASRC SOLIDS(%Vd) 21,5 21 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 73 98 CIRCULATE 8 CONDITION 4.5 32.0 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 18.0 139.5 CH2MHILL R600/R300 84/59 115/78 SERVICE RIG 3.0 FAIRWEATHER i R200/R100 48/35 63/43 DOWNTIME 16.5 HALLIBURTON 7 R6/R3 12/10 15/13 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 PV(cP) 25 37 WIRELINE SURVEYS NABORS 29 YP(Ib/100 It° 35 41 LOGGING PEAK OIL/WATER(%Vd) 2/78 RUN CASING/CEMENT 47.0 SCHLUMBERGER 10s/10m/30m GELS(Ib/100ft2) 11/13/14 13/20/27 WAIT ON CEMENT SOLSTEN XP I API FLUID LOSS(cc/30min) 4.2 4 NIPPLE ON UP/DOWN BOP'S, 21.0 VETCO GRAY HTHP FLUID LOSS(cc/30min) Na TEST BOP'S 18.0 WEATHERFORD CAKE APT/HT(1/37) 1/Na 11Na DRILL STEM TEST BEAR WATCH 2 ✓ UNC RET SOLIDS(%Vol) PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK 1 OIL/WATER RATIO 2/77 MISCELLANEOUS ALKAL MUD(Pom) MEETINGS 0.5 4.0 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 4.5 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 67 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAYS INV. SAND(%Vol) 0 0 RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) 00 HSE pH/TEMP 10.0©58 9.8070 SAFETY MEETINGS BEAR SIGHTINGS: None Pf/Mf(0) 5.0/4.80 4.60/5.10 Tripping in hole I Derrick inspection OTHER WILDLIFE: None CHLORIDES(mg/L) 100000 _ 105000 ACCIDENTS: None SPILLS: None HARDNESS(Ca++) 40 .001 WEATHER DAILY HIGH I -4 I DAILY LOW I 4 CASING OD WT GRADE MO TVD MAX WIND/DIR NE 16.1 mph MAX WIND CHILL -20 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 8 miles Surface 40 1-80 COMMENTS Intermediate 26 180 BHA DESCRIPTION BHA#3 LENGTH 396.28 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC QD505FHX 7028065 4 x 11,t x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 186 108 283 369 BIT NO. 2 INNER I 2 OUTERI 3 DULL CT I LOC I T I SEAL I X I GAUGE] 1 I OTHER ILN/P1iiRP TD ` HYDRAULICS DATA PUMP I MAKE MODEL_ LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC _ BIT HHP _ PUMP HHP _ 1 _EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:/ REDUCED PUMP RATES BG: MAX: REMARKS: PUMP SPM PRESS DEPTH GAS SHOWS CONN: CL: #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD _ __ ANGLE AZIMUTH TVD N/S I COORDINATES I E/W V.SECTION DLS / 1 DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG:I 7ES RPT DATE:February 20,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Dan Shearer AFE 9:640038 I API#:150-103-20652-00-00 DFS:18 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:22 TOOLPUSHER 1:Cleve Coyne FIELD: DOL-21 TOOLPUSHER 2:Brian Tiedemann/Kevin Bart ELEV: RKB: 29 LAST BOP TEST:2/15/12 __ RIG PHONE#:907-865-9900 MD: TVD: NEXT BOP TEST:I2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLO: I CSGHD:I 26 AFE AMOUNT: $13,504,000 AFE CUM. $10,458,564 24 HOUR Attempting to pump down E-line. SUMMARY ACTIVITY Run E-line logs.Cement open hole.POH.BPOE test. PLANNED FROM TO HRS OPERATIONS 0:00 1.00 1.0 Pump OOH U 583'to 396'md. 1:00 1.30 0.5 PJSM on L/D BHA.Blow down Top Drive. -- _-- - 1:30 4:30 3.0 L/D BHA.Rack back HW DP.Down load MWD and LN BHA 4:30 5:00 0.5 Clear and clean Rig floor. 5:00 7:00 2.0 PJSM.P/U BHA per D.D.to 293'md. 7:00 8:30 1.5 RIH w/BHA on 4"DP to 3017 md. 8:30 9:30 1.0 Attempt to CBU. 9:30 12:00 2.5 RIH to 7300'md.Losses f/tour.80 bels. 12:00 14:00 2.0 Cont to RIH to 921T md.Monitor well. 14:00 14:30 0.5 Wash to bottom @ 9315'md.167 gpm/921 psi.40 RPM/7K Tq/4OK UWU 80K wIT. 14:30 17:30 3.0 Spot LCM U 9315'-91011 md.20 bbls @ 40 ppb.Put up V 8560'md.Circ to Gear OP.Ckc 30 bbls 210 gpm11780 psi.Losses @ 8 hbl= 17:30 19:30 2.0 Wait on pit Ckc 32 bels,losses @ 10 bels.216 gpeV1442 psi.Well still breathing slightly. 19:30 21:30 2.0 R/U Nine sheaves and wire. 21:30 22:30 1.0 RIH to atm w/DP 9313'md. 22:30 0:00 1.5 R/U Nine pressure control and Tools --- TOTAL HRS 24.0 MORNING Continue to R/U 8 test Edine Tools and pressure control.Trouble shoot conectivity issues and pressure leak.RIH w/E-tine.No-go.Aeemp to Pump E-line down.Matt Herrera UPDATE AOGCC was notified of intent to test BOPE @ 19:O0hrs 2/20/12,Matt waived witness. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 03,00 16:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER • FLOWLINE TEMP(°F) 72 73 RIG UP/DOWN 0.5 57.0 BRPC 3 DEPTH/TVD(ft) 9315/6162 9315/6162 DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 12.7@62 12.7@70 REAMING 0.5 2.5 ASRC SOLIDS(%Vol) 22 22 CORING BAKER HUGHES FUNNEL VISCOSITY(s/ql) 77 90 CIRCULATE 8 CONDITION 6.0 38.0 BEACON 2 RHEOLOGY TEMP CF) 120 120 TRIPPING 13.0 152.5 CH2MHILL R600/R300 84/61 85/62 SERVICE RIG 3.0 FAIRWEATHER R200/R100 50/39 52/40 DOWNTIME 16.5 HALLIBURTON 8 R6/R3 13/11 14/12 SLIP/CUT DRILLING LINE 2.5 MISWACO PV(cP) 23 23 WIRELINE SURVEYS NABOBS 29 • YP(b/100 fta 38 39 LOGGING 3.5 3.8 PEAK 8 OILNVATER(%Vol) RUN CASING/CEMENT 47.0 SCHLUMBERGER 10s/10m/30m GELS(Ib/100BW 11/17/26 12/18/27 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cc/30min) 4 3.8 NIPPLE ON UP/DOWN BOPS 21.0 VETCO GRAY 2 r HTHP FLUID LOSS(cc/30min) TEST BOP's 18.0 WEATHERFORD CAKE APT/HT(1/321 DRILL STEM TEST BEAR WATCH UNC RET SOLIDS(%Vol) PLUG BACK CATERING CORRECT SOLIDS(%Vol) _ _ _SQUEEZE CEMENT OTHER OIL(%Vol) FISHING / UNCORR WATER(%Vol) DIRECTIONAL WORK ►/ OIL/WATER RATIO 1/77 1/77 MISCELLANEOUS ALKAL MUD(Pom) MEETINGS 0.5 4.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 4.5 LIME(I6/bbl) COMPLETION(STANDBY) TOTAL 54 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) 0 0 RIG FUEL ECD(ppg) CAMP FUEL FLOW IN (gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) 0 0 HSE pW1EMP 10.0@62 9.9@71 SAFETY MEETINGS BEAR SIGHTINGS: none PBMf(0) 3.00/4.80 3.0/4.70 laying down bha I tripping OTHER WILDLIFE: none CHLORIDES(mg/L) 115000 115000 ACCIDENTS: none SPILLS: none HARDNESS(Ca..) 40 40 WEATHER DAILY HIGH I -9 I DAILY LOW I -11 CASING OD WT GRADE MD ND MAX WINDIDIR ENE 19.6 mph MAX WIND CHILL -27 Conductor 20 94 A56 80 80 PRECIPITATION 0 VISIBILTY 4 miles Surface 9-5/8 40 L-80 3069 2448 COMMENTS Intermediate 26 LBO BHA DESCRIPTION BHA#3 LENGTH 396.28 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC OD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 112 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 186 108 283 369 BIT NO. 2 INNER I 2 OUTER] 3 DULL CT I LOC I T 1 SEAL I X I GAUGE I 1 I OTHER ILN/P#IRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP I 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD I ANGLE AZIMUTH ND N/S I COORDINATES I ENV V.SECTION DLS • Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: c_ RPT DATE:February 21,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Dan Shearer AFE IS:640038 I APIS:150-103-20652-00-00 DFS:19 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:23 TOOLPUSHER 1:Cleve Coyne FIELD: DOL:22 TOOLPUSHER 2:Brian Tiedemann/Kevin Barr ELEV: RIM: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD:9,315 TVD: 6,170 NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG:9,315 HRS DRLG: I CSGHD: I 26 AFE AMOUNT: 513.504.000 AFE CUM. 510,935,045 24 HOUR Running in the hole with cement retainer. SUMMARY ACTIVITY Plug Mustang#1 OH&Csg shoe.Put up above cement retainer&balance 50+ft of cement.WOC.Tag Cmt.Test Cmt.Displace to Inhibited Completion fluid. PLANNED FROM TO HRS OPERATIONS 0:00 4:00 4.0 RU wireline and test lubricator,250 psi low and 3000 psi high. 4:00 7:30 3.5 Log Kupantk A sands,pump at start to aid tool.210 GPM at 1340 psi. 7:30 9:30 2.0 POOH wrh wire line and lay down. 9:30 10:30 1.0 Backream from 9313'to 8935'at 84 GPM,70'a minute,140K UWT,80K SOW.L/D 5'pup 10:30 12:30 2.0 RD wireline tools and clean floor. • 12:30 13:30 1.0 TOOH from 8935'to 8560',130K UWT,80K DWT. 13:30 22:30 9.0 POOH from 8560'to 762'.85 GPM,140 psi,50 RPM at 90'a minute pull rate. 22:30 23:00 0.5 POOH from 762'to BHA at 292',81 GPM,88 psi,35K UWT,35K DWT. 23:00 0:00 1.0 L/D BHA from 292'to 200'. TOTAL HRS 24.0 MORNING UD BHA.P/U&M/U Cmt retainer&RIH to plug well, UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY I PERSONNEL ON SITE TIME 21:00 03:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) 71 RIG UP/DOWN 57.0 BRPC 3 DEPTH/TVD(ft) 9315/6162 9315/8162 DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 12.7/66 12.55/67 REAMING 1.0 3.5 ASRC SOLIDS(./Vol) 21 21 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 76 76 CIRCULATE&CONDITION 38.0 BEACON 2 RHEOLOGY TEMP CT) 120 120 TRIPPING 11.5 164.0 CH2MHILL R600/R300 84/60 83159 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 50/37 47/35 DOWNTIME 16.5 HALLIBURTON 8 R6/R3 13/10 12/10 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 PV(cP) 24 24 WIRELINE SURVEYS NABORS 29 YP(Moo f 36 35 LOGGING 5.5 9.0 PEAK 8 OIL/WATER(%Vol) RUN CASING/CEMENT 47.0 SCHLUMBERGER 10s/10m/30m GELS(D/100It01 12/1823 10/17/25 WAIT ON CEMENT SOLSTEN XP API FLUID LOSS(cc/30min) 4 3.8 NIPPLE ON UP/DOWN BOP'S 21.0 VETCO GRAY HTHP FLUID LOSS(cc/30min) TEST BOP's 18,0 WEATHERFORD CAKE APT/HT(1/3r) DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER 12 OIL(%Vol) FISHING / UNCORR WATER(%Vit) DIRECTIONAL WORK ✓ OIL/WATER RATIO 1/78 1/78 MISCELLANEOUS ALKAL MUD(Porn) MEETINGS 4.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 6.0 10.5 _ LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 80 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. • SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE pH/TEMP 9.4/65 9.4/67 SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) 5.2/8.4 5.2/7.8 tripping I staying focused OTHER WILDLIFE: none CHLORIDES(mglL) 100000 100000 ACCIDENTS: none SPILLS: none HARDNESS(Ca++) 40 40 WEATHER DAILY HIGH 1 -6 I DAILY LOW I -11 CASING OD WT GRADE MD TVD MAX WIND/DIR ENE 21.9 mph IMAX WIND CHILL -20 Conductor 94 A56 PRECIPITATION 0 IVISIBILTY 2 miles Surface 40 L-80 COMMENTS Intermediate 26 L80 BHA DESCRIPTION BHA#3 LENGTH 39628 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.0 WT. 80000 TORQUE 9000 1 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANNNEL) DC(ANNNEL) 3 6.125 Baker Hughes PDC QD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC 0D505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 186 108 283 369 BIT NO. 2 INNER I 2 OUTER' 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHER LN/PIiRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 880 8,189 ' ,TRIP: FORMATION: #2 52 880 8.189 SURVEY DATA MD ANGLE AZIMUTH ND N/S I COORDINATES I FJW V.SECTION DLS r L • /‘,/\,N, DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG:I 7ES RPT DATE:February 22,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Dan Shearer AFE#:640038 I API 0:150-103-20652-00-00 DFS:20 DRILLING SUPERVISOR 2: LEASE:390680 _ REPORT NO:24 TOOLPUSHER 1:Bib Perry FIELD: DOL:23 TOOLPUSHER 2:Kevin Barr ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE 0:907-865-9900 MD:8,975 TVD: 5,960 NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG:-340 MRS DRLG: I CSOHD:I 26 AFE AMOUNT: $13,504,000 AFE CUM. $11,558,033 24 HOUR CBU.Prepare to displace to inhOid 2%KCI. SUMMARY ACTIVITY Displace to inhibited 2%KCI.POH,L/D DP.RIH w/3-1/2'kiN string. PLANNED FROM TO HRS OPERATIONS _ 0:00 2:00 2.0 L/D,clean out run BHA,clear&clean rig floor,C/O elevators 2:00 3:00 1.0 PIU BHA,make dummy run,ensure no snags in BOP.L/D single - 3:00 7:30 4.5 RIH 1214'to 5649'pump 148 gpm;808 psi;UWT 68k;SOW;65K,RIH 6682' 7:30 11:30 4.0 Wellbore breathing test;150 psi SICP;0-psi SIDP;TD isolated from psi to prevent freezing,stripped 1 Ski,blew down TD 11:30 13:00 1.5 Trip in hole from 6682109030';130K Uwt;8216 Owl ,,L, 13:00 18:00 3.0 Prepare to set EZSV,set EZSV per HES 9023',establish intaction rates,injected 75 bbls.rig up to pressure test EZSV li V"rJj-)] 16:00 17:00 1.0 Pressure test EZSV 3500psi 15 min w/3 bbls 12.7 ppg mud:bleed pressure;3 bbls returned;BID kill line 17:01 20:00 3.0 Sling into EZSV,R/U HES cemenlets,pump 2 bbls H2O,PT lines 3000 psi.pump 10 bbls H2O,19 bbls 15.8 ppg Cmt,3 bbls H20,displace w/88 bbls 12.7 ppgtAil Unsting from EZSV,3 bbls cement on top of EZSV,POOH to 8520' 20:00 21:00 1.0 Pump wiper ball around at 8520';211 gpm,1360 psi,363 bbls 12.7 ppg mud pumped 21:00 0:00 3.0 Wail on cement:R/D cementers,blow down Cmt line and Top drive,R/D MWD depth encoder and pressure sensor TOTAL HRS 24.0 MORNING W.O.C..AOGCC Matt Hermes observes;3500 psi Csg/Cmt plug test-Pass 8 Tag of Cmt chug @8975'MD-"'K P/U&circulate to ensure stinger not plugged.CBU UPDATE MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 03:00 15:00 ACTNITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) ole RIG UP/DOWN 57.0 BRPC 3 • DEPTH/TVD(ii) 9315/6170 9315/6162 DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(D/gal) 12.7@64 12.7(@9 REAMING 3.5 ASRC SOLIDS(%Vol) 20 21 CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 75 83 CIRCULATE&CONDITION 5.0 43.0 BEACON 2 RHEOLOGY TEMP('F) 120 120 TRIPPING 9.0 173.0 CH2MHILL R600lR300 93/70 91/68 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 50/46 52/43 DOWNTIME 16.5 HALLIBURTON 13 R6/R3 1219 13/10 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 PV(cP) 23 23 WIRELINE SURVEYS NABORS 29 YP(D/100IIt) 47 45 LOGGING 9.0 PEAK 12 • OILIWATER(%Vol) RUN CASING/CEMENT 7.0 54,0 SCHLUMBERGER 104/10m/30m GELS(D/100R6 11/15/18 12/1821 WAR ON CEMENT 3.0 3.0 SOLSTEN XP API FLUID LOSS(cr/30min) 4,6 4 NIPPLE ON UP/DOWN BOP% 21,0 VETCO GRAY 2 • HTHP FLUID LOSS(cc/30min) TEST BOP's 18.0 WEATHERFORD CAKE APT/HT(1/37) 1 1 DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%0'd) PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER 8 OIL(%Vol) FISHING UNCORR WATER(%Vol) DIRECTIONAL WORK OIL/WATER RATIO 1/79 MISCELLANEOUS ALKAL MUD(Pan) 3.1 MEETINGS 4.5 CL WHOLE MUD(mglt) WELL CONTROL SALT(%Wt) COMPLETION 10.5 LIME(DDM) COMPLETION(STANDBY) TOTAL EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(p99) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER • MBT(Dlbbl) HOE pH/TEMP 9.7064 9.6(69 SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) 2.9/8.9 4.8 lay down BHA I OTHER WILDLIFE: none CHLORIDES(mglL) 112000 115000 ACCIDENTS: none SPILLS: none HARDNESS(Ca++) 40 40 WEATHER DAILY HIGH I -8 I DAILY LOW I -15 CASING OD WT GRADE MD TVD MAX W INDIDIR NE 13.8 mph MAX WIND CHILL -27 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 8 miss Surface 40 L-80 COMMENTS Intermediate 26 L80 BNA DESCRIPTION BHA#3 LENGTH 396.28 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC QD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 • 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 186 108 283 389 BIT NO. 2 INNER I 2 OUTER' 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHER ILN/Pf4RP TD HYDRAULICS DATA PUMPj MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP EMSCO F-1000 5.000 10.000 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES S ONS BG: Mall PUMP SPM PRESS DEPTH CONN: #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA I MD ANGLE AZIMUTH TVD N/S 1 COORDINATES I ENV V.SECTION DLS - • ^.' `"\ DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 7,., RPT DATE:February 23,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Dan Shearer AFE#:640038 I API S:l50-103-20852-00-00 DFS:21 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:25 TOOLPUSHER 1:8111 Perry FIELD: DOL:24 TOOLPUSHER 2:Kevin Barr ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD: ND: NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLG: I CSOHD: I 26 AFE AMOUNT: 513,504000 AFE CUM. 512,097006 24 HOUR Nipple down ROPE.N/U Tree. SUMMARY ACTIVITY N/U Tree&test.Pull TWC.Freeze protect&U-tube.Set BPV Secure cellar.Secure Rig RDMO PLANNED FROM TO ' HRS OPERATIONS 2:30 430 2.5 Wall on Cement. -y i 2:30 4:00 1.5 R/U and test 7"casing 3,500 psi for 30 minutes-good test.Test witnessed by AOGCC Rep,Matt Herrera. j\rX/\/ 4:00 5:00 1.0 RIH from 8,561'to 8,975',lagged lop of cement at 8,975',I1WT=126K,SOW=87K. 5:00 6:30 1.5 Pump BN at 210 GPM with 1,525 psi. _- 6:30 7:30 1.0 Empty pits,while waiting on M-1 corrosion inhibitor. 7:30 10:00 2.5 Reverse circulate from 12.7 ppg drilling mud to 2%KCI at 168 GPM at 1,520 psi. 10:00 19:30 9.5 UD drill pipe. 19:30 21:00 1.5 Pull wear bushing,MN Tbg hanger and make dummy nn. 21:00 22:00 1.0 R/U to run 3.5"EUE,9.314,8 rd tubing. 22:00 0:00 2.0 Run 3.5"tubing to 1,133'.36K UWT,36K SOW,Tq to 3,000 ft/lbs. TOTAL NRS 24.0 MORNING Continue to run 3-1/2'Tbg to 2873'md.Uwt=46K,SOW=44K,MN Tq=3K.P/U&MN Tbg bhanger.Land Tbg @ 2878'red.RILDS.Set TWC&test f/below.Blow down.Pump out UPDATE stack.Nipple down ROPE. MUD RECORD MUD 1 Water-Based MUD 2 Water-Based OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME 22:00 10:00 ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(•F) RIG UP/DOWN 57.0 BRPC 2 DEPTH/TVD(ft) 9313/6162 9313/8162 DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(lb/gal) 8.5/86 8.5/88 REAMING 3,5 ASRC SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) 28 28 CIRCULATE 8 CONDITION 4.0 47.0 BEACON 2 RHEOLOGY TEMP(•F) TRIPPING 10.5 183.5 CH2MHILL R6001R300 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 DOWNTIME 16.5 HALLIBURTON 1 R6IR3 SLIP/CUT DRILLING UNE 2.5 MISWACO 2 ,I PV(cP) WIRELINE SURVEYS NABOBS 29 YP(Ib1100112) LOGGING 9,0 PEAK 12 • OIL/WATER(%Vol) RUN CASING/CEMENT 1.5 55.5 SCHLUMBERGER 10s/10m/30m GELS(Ib/100R�1 II /I WAIT ON CEMENT 2.5 5.5 SOLSTEN XP I API FLUID LOSS(cc/30min) NIPPLE ON UP/DOWN BOP); 21.0 VETCO GRAY 1 HTHP FLUID LOSS(col3omin) TEST BOP'e 18.0 WEATHERFORD CAKE APT/HT(1/32) DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER 8 OIL(%Vol) FISHING _ UNCORR WATER(%Vol) DIRECTIONAL WORK OIUWATER RATIO MISCELLANEOUS ALKAL MUD(Porn) MEETINGS 4.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 5.5 16.0 LIME(Ib/WI) COMPLETION(STANDBY) TOTAL 73 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(ppg) CAW FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE pH/TEMP 8.4@88 8.40,8 SAFETY MEETINGS BEAR SIGHTINGS: None P686(0) Laying down drill pipe I OTHER WILDLIFE: None CHLORIDES(mg/L) 10000 10000 ACCIDENTS: None SPILLS: None HARDNESS(Ca++) WEATHER DAILY HIGH I -17 I__DAILY LOW L 24 _____ CASINO OD WT GRADE MD ND MAX WIND/DIR SW 11.5 mph MAX WIND CHILL -30 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 3 miles Surface 40 L-80 COMMENTS Intermediate 26 L80 BHA DESCRIPTION BI-IA#3 LENGTH 396.28 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT --_--. 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC 00505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 188 108 283 369 BIT NO. 2 INNER I 2 OUTER' 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHER ILN/PPIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA i MD _ ANGLE _I_-AZIMUTH - ND -- N/S_1 - COORDINATES I E/W 1 _V.SECTION 1 DLS--_- • /‘•>,\\. DRILLING REPI__ Brooks Range Petroleum Corporation WELL:Mustang#1 _ CONTRACTOR:Nabors Alaska Drilling I RIG:I 7ES RPT DATE:February 24,2012 SPUD DATE:2/2112 DRILLING SUPERVISOR 1:Dan Shearer AFE S:640038 I API 11:I50-103-20652-00-00 DFS:22 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:26 TOOLPUSHER 1:Bifl Perry FIELD: DOL:25 TOOLPUSHER 2:Kevin Barr ELEV: RKB: 29 LAST BOP TEST:2L151t2, RIG PHONES:907-865-9900 MD: VDT - --7.1- 131:1!,.-T • /22/2012 \„ LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLG: I CSGHD:'r 26 `-. AFE AMOUNT: $13,504,000 AFE CUM. $12352826 24 HOUR Prepare for rig move. SUMMARY ~ ACTIVI Prepare for rig move.Move rig \ PLANN O\ FRO TO HRS OPERATIONS \ 0: 3:00 3.0 RIH w/3.1/2"9.3#8rd EUE Tbg.P/U Tbg 8 land @ 2903'.Uwt=46K,SOW=44K,RILDS 3' 4:00 1.0 Set 8 teat TWC f/below to 1500 psi I/15 charted minutes.Blow down @nd Kill tine. 00 4:30 0.5 Prepare cellar,Suck out stack. 4:30 10:00 5.5 N/D BOPE.N/U 8 test Tree.Test void 8 Tree to 5000 psi-OK.Pull TWC. 14:00 14:00 4.0 Freeze protect w/LRS.Pump 100 bbls of diesel @ 2 bpm/475 psi.80 degrees. 1400 15:00 1.0 Velco-Grev Install BPV Test f/below1500 osi 015 minutes. 15: 16:30 1.5 •Remove auxiliary valves.Install flanges 8 gauges 16: 19:00 2.5 Clear 8 clean cellar 19:00\\0:00 5.0 RDMO.Release Rig @ 23:59 hrs 2/24/12 \ TOTAL HRS 24.0 MORNING Continue ig dawn and prepare for move UPDATE MUD RECORD OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) RIG UP/DOWN 5.0 62.0 BRPC 2 DEPTH/TVD(ft) DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(Ib/gal) REAMING 3.5 ASRC SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) CIRCULATE 8 CONDITION 47.0 BEACON 2 RHEOLOGY TEMP CF) TRIPPING 183.5 CH2MHILL R800/R300 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 DOWNTIME 16.5 HALLIBURTON 1 R6/R3 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 PV(cP) WIRELINE SURVEYS NABORS 29 YP(Ib/100 fI LOGGING 9.0 PEAK 12 OIL/WATER(%Vol) RUN CASING/CEMENT 55.5 SCHLUMBERGER 10s/10m/30m GELS(Ib/10080 Il /I WAIT ON CEMENT 5.5 SOLSTEN XP API FLUID LOSS(cd3omin) NIPPLE ON UP/DOWN BOPS 1.0 22.0 VETCO GRAY 2 - HTHP FLUID LOSS(cd30min) TEST BOPS 18.0 WEATHERFORD CAKE APT/HT(1/37) DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT _ OTHER 8 1 OIL(%Vol) FISHING UNCORR WATER(%Vd) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Pom) MEETINGS 4.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 18.0 34.0 LIME(Ibtbbl) COMPLETION(STANDBY) TOTAL 74 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAYS INV. SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE WUTEMP SAFETY MEETINGS BEAR SIGHTINGS: none • Pf/Mf(0) rigging down I OTHER WILDLIFE: none CHLORIDES(mg/L) ACCIDENTS: none SPILLS: none HARDNESS(Ca..) WEATHER DAILY HIGH I -22 I DAILY LOW I -31 CASING CO WT GRADE MD TVD MAX WIND/DIR SSW 19.6 mph MAX WIND CHILL -50 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 1 mile Surface 40 L-80 COMMENTS Intermediate 26 L80 BHA DESCRIPTION BHA#3 LENGTH 39628 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.O WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB 'RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC QD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2a 14 N 3,082 9,120 6,038 55.7 35 186 108 283 369 BIT NO. 2 INNER I 2 OUTER' 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHER ILN/PFIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD ANGLE AZIMUTH TVD WS I COORDINATES I ENV V.SECTION DLS ,"' ,\, DRILLING REPORT Brooks Range Petroleum Corporation WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: RPT DATE:February 25,2012 SPUD DATE:2/2/12 DRILLING SUPERVISOR 1:Dan Shearer AFE#:640038 On 50-103-20652-00-00 DFS:23 DRILLING SUPERVISOR 2: _ LEASE:390680 REPORT NO:27 TOOLPUSHER 1:Biff Perry FIELD: DOL:26 TOOLPUSHER 2:Kevin Barr ELEV: RKB: 29 LAST BOP TEST:2/15/12 RIG PHONE#:907-865-9900 MD: ND: NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLG: I CSGHD: I 26 AFE AMOUNT: $13,504,000 AFE CUM- I $12,595,436 24 HOUR Moving Rig to Deadhorse SUMMARY ACTIVITY Move Nabors 7ES&support equipment to Deadhorse. PLANNED FROM TO HRS OPERATIONS 0:00 10:30 10.5 RDMO.Secure Rig floor&Pits.Clear&dean Rig.Remove Berming 10:30 11:00 0.5 Lower Derrick, 11:00 16:30 5.5 Sow arrives.Pull Pits away.Prepare to move.Spot modules. 16:30 22:00 5.5 Depart Mustang#1 pad.Travel to 2M Pad Talkeetna camp. 22:00 0:00 2.0 Rig slid off road lust past Talkeetna camp.Wait on 2-Cats to pull Rig back onto road TOTAL HRS 24.0 MORNING'Wel on Cats to pull Rig back onto road.Transport Rig to Deadhorse UPDATE MUD RECORD MUD 1 MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP('F) RIG UP/DOWN 240 86.0 BRPC 2 DEPTH/TVD(ft) DRILLING 146.5 ACS 2 MUD WEIGHT/TEMP(D/gal) REAMING 3.5 ASRC SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) CIRCULATE 8 CONDITION 47.0 BEACON 2 RHEOLOGY TEMP(°F) TRIPPING 183.5 CH2MHILL R600/R300 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 DOWNTIME 16.5 HALLIBURTON I R6/R3 SLIP/CUT DRILLING LINE 2.5 MISWACO 2 PV(cP) WIRELINE SURVEYS NABORS 29 YIP(E/100114 LOGGING 9.0 PEAK 12 OIL/WATER(%Vol) RUN CASING/CEMENT 55.5 SCHLUMBERGER 10s/10m/30m GELS(Ib/100ftm /I 11 WAIT ON CEMENT 5.5 SOLSTEN XP API FLUID LOSS(cc/30min) NIPPLE ON UP/DOWN BOP's 22.0 VETCO GRAY Iff HTHP FLUID LOSS(cc/30min) TEST BOP's 18.0 WEATHERFORD I CAKE APT/HT(1/32') DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) PLUG BACK CATERING 11 t CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER 10 OIL(%Vol) FISHING _UNCORR WATER(%Vd) DIRECTIONAL WORK OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Porn) MEETINGS 4.5 CL WHOLE MUD(mglL) WELL CONTROL SALT(%Wt) COMPLETION 34.0 LIME(D/bbl) COMPLETION(STANDBY) TOTAL 74 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Val) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER MBT(Ib/bbl) HSE pH/TEMP SAFETY MEETINGS BEAR SIGHTINGS: none PflMf(0) slips,trips.falls I cold weather OTHER WILDLIFE: none CHLORIDES(mg/I) ACCIDENTS: none SPILLS: none HARDNESS(Ca..) WEATHER DAILY HIGH I -26 I DAILY LOW I -35 CASING OD WT GRADE MD ND MAX WINDIDIR SSW 18.4 mph MAX WIND CHILL -55 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 2 miles Surface 40 LA0 COMMENTS Intermediate 26 L80 BHA DESCRIPTION BHA#3 -- — - —LENGTH 396.28 BHA WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 5.0 WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) __ 3 6.125 Baker Hughes PDC QD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes PDC QD505X 7017337 5 x 13,2x 14 N 3,082 9,120 6,038 55.7 35 186 108 283 369 BIT NO 2 INNER I 2 °UTERI 3 DULL CT I LOC I T I SEAL I X I GAUGE I 1 I OTHER ALN/PI1RP TO HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS _ PORE PRESSURE:I REDUCED PUMP RATES 130: MAX: REMARKS: PUMP SPM PRESS DEPTH GAS CONN: CL: #1 35 880 8,189 SHOWS TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD ANGLE AZIMUTH TVD N/S I COORDINATES I ENV V.SECTION DLS i -4 I /S")'\'‘ DRILLING REPORT Brooks Range Petroleum Corporaton WELL:Mustang#1 CONTRACTOR:Nabors Alaska Drilling I RIG: I 'h-` RPT DATE:February 26,2012 SPUD DATE:2/2112 DRILLING SUPERVISOR 1:Dan Shearer AFE#:640038 I API*150-103-20652-00-00 DFS:24 DRILLING SUPERVISOR 2: LEASE:390680 REPORT NO:28 TOOLPUSHER 1:861 Perry I FIELD: DOL:27 TOOLPUSHER 2:Kevin Barr ELEV: RKB: 29 LAST BOP TEST:2115/12 RIG PHONE*:907-865-9900 MD: ND: NEXT BOP TEST:2/22/2012 LAST SHOE TEST DATE: 02/14/2012 SHOE TEST: 24 HR FTG: HRS DRLO: I CSGHD: I 26 AFE AMOUNT: $13,504,000 AFE CUM. $12,816,666 24 HOUR Wading on crew changes Q Milne point cut off. SUMMARY ACTIVITY Move to Dead/lone. PLANNED FROM TO HRS OPERATIONS 0:00 9:00 9.0 Rig still off road.Continue to work w/dunnage to get rig set up.Pull rig onto road w/cats 9:00 16:30 7.5 CPF-2.Wait on crew changes. 16:30 0:00 7.5 Continue to move to Kuperuk. TOTAL HRS 24.0 MORNING Contrx/e moving to Milne cutoff UPDATE MUD RECORD MUD 1 MUD 2 OPERATIONAL TIME SUMMARY PERSONNEL ON SITE TIME ACTIVITY DAILY CUM HRS COMPANY NUMBER FLOWLINE TEMP(°F) RIG UP/DOWN 24.0 110.0 BRPC 2 DEPTH/VD(ft) DRILLING 146.5 ACS 2 "{ MUD WEIGHT/TEMP(lb/gal) REAMING 3.5 ASRC F SOLIDS(%Vol) CORING BAKER HUGHES FUNNEL VISCOSITY(s/qt) CIRCULATE&CONDITION 47.0 BEACON 2 RHEOLOGY TEMP(°F) TRIPPING 183.5 CH2MHILL R600/R300 SERVICE RIG 3.0 FAIRWEATHER 1 R200/R100 DOWNTIME 16.5 HALLIBURTON R6/R3 SLIP/CUT DRILLING LINE 2.5 MISWACO 1 ` PV(cP) WIRELINE SURVEYS NABOBS 29 YP(lb/100ft6 LOGGING 9.0 PEAK 12 I OIL/WATER(%Vol) RUN CASING/CEMENT 55.5 SCHLUMBERGER 10s/10m/30m GELS(IW100ft6 /f —_. /I WAIT ON CEMENT 5.5 SOLSTEN XP API FLUID LOSS(ccJ30min) NIPPLE ON UP/DOWN BOP's 22.0 VETCO GRAY HTHP FLUID LOSS(cc/30min) TEST BOP's 18.0 WEATHERFORD CAKE APT/HT(1/37) DRILL STEM TEST BEAR WATCH 2 UNC RET SOLIDS(%Vol) _ PLUG BACK CATERING 11 CORRECT SOLIDS(%Vol) SQUEEZE CEMENT OTHER 8 1 OIL(%Vol) FISHING 1 UNCORR WATER(%Vol) DIRECTIONAL WORK i OIL/WATER RATIO MISCELLANEOUS ALKAL MUD(Pom) MEETINGS 4.5 CL WHOLE MUD(mg/L) WELL CONTROL SALT(%Wt) COMPLETION 34.0 LIME(Ib/bbl) COMPLETION(STANDBY) TOTAL 70 EMUL STABILITY CONSUMABLES START RECEIVED USED TODAY'S INV. SAND(%Vol) RIG FUEL ECD(ppg) CAMP FUEL FLOW IN(gpm) SUPPORT FUEL PUMP PRES(psi) TOTAL FUEL ROP(FPH) POT WATER I MBT(Ib/bbl) HSE pH/TEMP SAFETY MEETINGS BEAR SIGHTINGS: none Pf/Mf(0) I OTHER WILDLIFE: none CHLORIDES(mg/L) ACCIDENTS: rmne SPILLS: none HARDNESS(Can+) WEATHER DAILY HIGH I -27 I DAILY LOW .I -36 CASING OD WT GRADE MD ND MAX WIND/DIR NE 13.8 mph MAX WIND CHILL -55 Conductor 94 A56 PRECIPITATION 0 VISIBILTY 10 miles Surface 40 L-60 COMMENTS Intermediate 26 180 BHA DESCRIPTION BHA Ira LENGTH 39628 BHA.WT AIR 15.73 BHA WT.MUD HRS.ON JARS 21.93 ROT WT. 95000 P.0 WT 155000 S.0 WT. 80000 TORQUE 9000 BIT DATA NO. SIZE MAKE TYPE SER NO. NOZZLES RR IN OUT FEET HRS WOB RPM ROP DP(ANN.NEL) DC(ANN.NEL) 3 6.125 Baker Hughes PDC OD505FHX 7028065 4 x 11,1 x 10 9,120 9,315 195 11.2 10 17 17 2 8.5 Hughes POC QD505X 7017337 5 x 13.2x 14 N 3,082 9,120 6,038 55.7__ 35 186 108 283 369 EA BIT NO. 2 INNER I 2 OUTERI 3 DULL CT I LOC I T I SL I x I GAUGE I I I OTHER ILf4 f PhIRP TD HYDRAULICS DATA PUMP MAKE MODEL LINER STK SPM PSI GPM GPS EFF% ECD AV DP AV DC BIT HHP PUMP HHP 1 EMSCO F-1000 5.000 10.000 2 EMSCO F-1000 5.000 10.000 PRESSURE PARAMETERS PORE PRESSURE:I REDUCED PUMP RATES GAS BG: MAX: REMARKS: PUMP SPM PRESS DEPTH SHOWS CONN: CL: #1 35 880 8,189 TRIP: FORMATION: #2 52 880 8,189 SURVEY DATA MD ANGLE AZIMUTH ND NIS I COORDINATES I E/W V.SECTION DLS rf{�r ft. ill HALLIBURTC3N DIRECTIONAL SURVEY REPORT Brooks Range Petroleum Mustang 1 North Tam-Kuparuk Formation AK USA AK-)OC-0009113843 Measured Vertical Vertical Depth Inclination Direction Depth Latitude Departure Section Dogleg (feet) (degrees) (degrees) (feet) (feet) (feet) (feet) (deg/100ft) 0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 TIE-IN 143.98 0.75 218.91 143.95 0.74 S 0.59 W -0.87 0.52 204.28 0.48 154.55 204.27 1.27 S 0.14 W -1.24 1.15 295.17 1.17 117.20 295.16 2.02 S 0.24 E -0.72 0.94 389.27 4.55 105.15 389.13 3.44 S 4.70 E 2,58 3.83 480.97 7.49 105.85 480.30 6.02 S 13.97 E 9.61 3.21 574.92 9.17 103.31 573.26 9.42 S 27.15 E 19.73 1.83 668.46 12.21 106.70 665.17 13.98 S 43.88 E 32.47 3.31 763.49 14.75 108.02 757.57 20.61 S 65.01 E 48.15 2.70 858.61 15.62 104.62 849.37 27.59 S 88.92 E 66.14 1.31 953.16 16.89 103.29 940.14 33.96 S 114.62 E 85.99 1.40 1048.79 22.59 107.06 1030.11 42.55 S 145.72 E 109.61 6.10 1142.10 26.91 108.50 1114.84 54.51 S 182.90 E 137.06 4.68 1238.19 29.80 103.65 1197.64 68.79 S 225.83 E 169.47 3.93 1330.86 28.74 108.30 1280.22 78.73 S 270.54 E 203.62 1.77 1424.37 27.99 103.07 1382.51 90.00 S 313.49 E 236.51 1.83 1520.48 27.32 103.57 1447.64 100.27 S 356.90 E 270.27 0.74 1613.85 29.78 103.30 1529.66 110.63 S 400.30 E 303.98 2.64 1707.58 33.75 103.67 1609.33 122.14 S 448.26 E 341.22 4.24 1803.08 38.19 102.89 1686.60 134.90 S 502.86 E 383.76 4,69 1895.23 41.88 104.00 1757.15 148.61 S 560,52E 428.57 4.11 1989.75 46.34 104.05 1825.00 164.54 S 624.34 E 477.81 4.71 2084.96 50.72 104.27 1888.04 181.99 S 693.49 E 531.10 4.61 2180.48 55.60 103.10 1945.30 200.05 S 767.75 E 588.63 5.20 2273.84 55.97 103.43 1997.80 217.76 S 842.88 E 647.09 0.49 2369.99 55.56 104.48 2051.89 236.93 S 920.02 E 708.67 1.00 2464.03 55.82 101.25 2104.90 254.22 S 995.74 E 765.85 2.85 2559.28 56.23 100.99 2158.13 269.46 S 1073.25 E 827.58 0.48 2653.87 55.77 104.59 2210.92 286.77 S 1149.54 E 887.24 3.19 2748.39 55.55 104.92 2264.36 306.69 S 1225.17 E 945.13 0.38 28641.94 555.18 104.43 2317.53 32_lE c 1295.62 E 1002.1a 0.59 2935.31 55.02 102.06 2370.96 343.73 S 1374.18 E 1060.18 2.08 3030.46 54.83 103.48 2425.64 360.94 S 1450.10E 1119.59 1.23 3062.60 54.44 102.91 2444.24 366.92 S 1475.62 E 1139.46 1.88 3147.92 53.98 101.43 2494.16 381.51 S 1543.26 E 1192.72 1.51 3249.63 53.44 100.65 2554.38 397.21 S 1623.70 E 1256.83 0.81 3341.05 52.66 101.19 2609.33 411.04 S 1895.43E 1314.07 0.97 3432.69 52.99 102.32 2664.70 425.91 S 1768.92 E 1370.61 1.05 3530.81 55.03 102.06 2722.36 442.87 S 1844.52 E 1431.71 2.08 3622.26 54.49 101.79 2775.12 458.10 S 1917.60 E 1489.40 0.63 3721.29 56.43 104.58 2831.27 476.73 S 1997.01 E 1551.24 3.04 3812.80 56.22 103.02 2882.01 494.89 S 2070.96 E 1608.45 1.43 3908.87 56.06 104.03 2935.54 513.56 S 2148.53 E 1668.64 0.89 4004.84 55.64 103.14 2989.41 532.21 S 2225.73 E 1728.50 0.89 4098.71 55.68 105.83 3042.37 551.59 S 2300.76 E 1786.10 2.37 4190.32 55.25 105.42 3094.30 571.92 S 2373.44 E 1841.18 0.60 4282.52 54.53 104.87 3147.32 591.63 S 2446.24 E 1896.65 0.93 4374.78 53.73 105.13 3201.39 610.98 S 2518.45 E 1951.78 0.89 4473.23 52.68 105.07 3260.35 631.52 S 2594.57 E 2009.81 1.07 4570.56 53.69 104.57 3318.88 651.45 S 2689.90E 2067.43 1.12 4665.22 54.73 104.21 3374.04 670.53 S 2744.28 E 2124.59 1.14 4760.92 53.90 104.17 3429.86 689.58 S 2819.64 E 2182.63 0.88 4854.52 55.33 103.93 3484.05 708.11 S 2893.66 E 2239.74 1.54 4949.87 54.42 103.25 3538.91 726.43 S 2969.47 E 2298.52 1.12 5044.39 54.28 104.88 3594.00 745.09 S 3043.96 E 2355.98 1.41 5138.02 53.27 104.91 3649.34 764.51 S 3116.95 E 2411.76 1.08 5225.45 54.32 104.64 3700.98 782.50 S 3185.16 E 2483.96 1.23 5320.30 55.06 106.65 3755.81 803.38 S 3259.69 E 2520.42 1.89 04LU.10 04.1V 1UU.dU 461;1.W 020.000 3J:4/.0/t L0/e./0 11.60 5515.82 55.10 105.07 3868.97 848.30 S 341" '1 E 2635.37 1.79 5608.19 55.20 33.96 3921.75 867.30 S 348+.. .E 2691.68 0.99 5699.98 58.16 104.29 3973.50 885.81 S 3559.58E 2748.35 1.09 5796.23 55.48 103.09 4027.57 904.66 S 3638.92 E 2808.27 1.26 5891.51 55.93 104.40 4081.26 923.36 S 3713.38E 2887.45 1.23 5986.92 55.29 102.95 4135.16 941.98 S 3789.88 E 2928.71 1.42 6082.07 54.98 105.68 4189.55 961.27 S 3865.52E 2984.89 2.38 6176.56 53.45 105.78 4244.80 982.05 S 3939.29 E 3040.73 1 63 6271.19 54.73 106.14 4300.30 1003.12 S 4012.98E 3096.36 1.39 6365.74 53.99 105.98 4355.40 1024.38 S 4086.82 E 3152.05 0.80 6460.01 55.17 106.24 4410.04 1045.70 S 4160.62 E 3207 67 1.28 8554.85 54.44 105.99 4464.70 1067.22 S 4235.09 E 3263.78 0.80 6649.43 53.71 105.73 4520.19 1088.15 S 4308.76 E 3319.46 0.80 6744.15 55.71 103.95 4574.91 1107.93 S 4383.49 E 3376.61 2.61 6838.52 54.87 103.77 4628.65 1126.51 S 4458.81 E 3434.84 0.91 6932.76 54.83 103.33 4682.90 1144.57 S 4533.71 E 3492.95 0.38 7028.47 54.77 100.80 4738.08 1160.92 S 4610.18E 3553.23 2.16 7122.78 54.96 102.60 4792.36 1178.56 S 4685.70E 3812.99 1.57 7216.78 54.66 103.82 4848.54 1194.11 S 4760.48E 3671.22 1.11 7306.68 54.19 102.96 4898.25 1210.86 S 4830.82 E 3725.88 0.94 7405.00 53.35 103.57 4956.95 1229.24 S 4908.81 E 3786.57 0.98 7499.71 52.91 99.14 5013.79 1244.16 S 4983.06 E 3845.54 3.77 7594.93 52.81 98.70 5071.28 1255.94 S 5058.05 E 3906.61 0.38 7686.65 52.43 95.93 5126.97 1265.22 S 5130.32 E 3966.43 2.44 7782.58 51.59 93.82 5186.01 1271.65 S 5205.63 E 4030.26 1.94 7878.14 50.82 91.09 5244.77 1274.78 S 5278.38 E 4093.35 2.49 7970.61 49.58 87.19 5305.39 1273.71 S 5350.82 E 4158.10 3.35 8065.21 49.73 81.89 5366.66 1266.85 S 5422.54 E 4224.89 4.27 8160.14 49.68 75.50 5428.09 1252.67 S 5493.47 E 4294.35 5.13 8255.51 49.20 71.71 5490.13 1232.23 S 5582.95 E 4365.42 3.06 8349.34 48.65 67.69 5551.80 1207.72 S 5629.27 E 4435.56 3.28 8444.59 49.02 63.11 5614.51 1177.88 S 5694.43 E 4507.14 3.64 8539.26 49.20 59.70 5676.49 1143.64 S 5757.25 E 4578.67 2.73 8634.15 50.06 54.52 5737.98 1104.38 S 5817.91 E 4650.60 4.26 8728.42 50.30 49.16 5798.37 1059.67 S 5874.80 E 4721.71 4.37 8821.89 49.74 43.64 5858.45 1010.33 S 5926.64 E 4790.48 4.56 8916.28 48.62 42.62 5920.16 958.20 S 5975.48 E 4857.86 1.44 9010.82 50.77 39.49 5981.32 903.83 S 6022.79 E 4924.94 3.40 9078.30 50.54 34.99 6024.11 862.31 S 6054.36E 4972.11 5.16 CALCULATION BASED ON MINIMUM CURVATURE METHOD 1 J SURVEY COORDINATES ES RELATIVE T O WELL SYSTEM REFERENCE POINT J TVD VALUES GIVEN RELATIVE TO DRILLING MEASUREMENT POINT VERTICAL SECTION RELATIVE TO WELL HEAD VERTICAL SECTION IS COMPUTED ALONG A DIRECTION OF 62.50 DEGREES(TRUE) A TOTAL CORRECTION OF 20.44 DEG FROM MAGNETIC NORTH TO TRUE NORTH HAS BEEN APPLIED HORIZONTAL DISPLACEMENT IS RELATIVE TO THE WELL HEAD. HORIZONTAL DISPLACEMENT(CLOSURE)AT 9078.30 FEET IS 6115.46 FEET ALONG 98.11 DEGREES(TRUE) Date Printed:12 February 2012 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg � /z /1 DATE: 02/23/12 P.I. Supervisor l SUBJECT: Suspension Plug FROM: Matt Herrera Mustang 1 Petroleum Inspector Brooks Range Petroleum North Tarn PTD 2111740 (Sundry 312-068) Section: 2 Township: 10N - Range: 7E - Meridian: Umiat Lease No.: ADL0390680 • Drilling Rig: Nabors 7ES , Rig Elevation: 98 ft KB Total Depth: 9315 ft MD Operator Rep.: Dan Shearer Casing/Tubing Data: Casing Removal: Conductor: 20" • O.D. Shoe@ 80 ft MD - Casing Cut@ Feet Surface: 9-5/8" , O.D. Shoe@ 3069 ft MD • Casing Cut@ Feet Intermediate: 7" , O.D. Shoe@ 9110 ft MD - Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D. Shoe@ Casing Cut@ Feet Tubing: 3-1/2" O.D. Tail@ 1500 ft MD Casing Cut@ Feet Plugging Data: Type Pluq Founded on Bottom of T.O.C. T.O.C. Mud Weight Pressure (bottom up) Cement(M.D.) Depth Verified? above plug Test Casing 1 Retainer 9023' 8975' Drillpipe Tag 3500 psi - j i I Plug tested 30 minutes with following results: 15min-3480psi; 30 min-3475psi;test was charted by operator - 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 cc: Well File Attachments: none Read File DNR/DOG Rev.:5/28/00 by L.R.G. 2012-0223_Suspend_Plug_Mustang-1_mh 2/25/2012 , �I I� S , y /iii' I� I; ; 0 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 Lawrence J. Vendl Vice President, Exploration Brooks Range Petroleum Corporation 510 L Street, Suite 601 1 ` - I LI- Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Mustang #1 1 Sundry Number: 312-068 Dear Mr. Vendl: 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 reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, 0 , Daniel T. Seamount, Jr. Chair rd DATED this 2 3day of February, 2012. Encl. Brooks Range Petroleum RECEIVED February 22, 2012 FEB 2 2 2012 Alaska Oil& Gas Cons. Commission Anchorage Mr. Dan Seamount, Chair -- ----1 Alaska Oil and Gs Conservation Commision 333 West 7th Ave. Suite 100 Anchorage, Alaska, 99501 RE: Sundry Application to Suspend Mustang#1 (PTD#211-174) Dear Mr. Seamount, Brooks Range Petroleum Corporation proposes to suspend its Mustang #1 well. The well suspension plan includes setting a cement retainer and cement plug into 7"casing as per the attached procedure and diagram. The well will be freeze rotected from the surface to 1600'with diesel. The wellhead will be left attached to the well. Lou Lk /oma . H`- `�- "-7'� X'`, 4 6- r-0 The following documents are included attachments: ` • 1. Completed form 10-403 Sundry Application 2. Suspension Procedure 3. Proposed Post-Suspension Well Diagram L37/L If you have any questions or require additional information please contact me at 339-9955 Sincerely, Lawrenc . Vendl lg(1/ VP-Exploration 21Page a a RECEIVED STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSIOhE FEB 2 2 2012 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 !;l3S ;,{ A ins.CCIOMMI: i� 1.Type of Request: Abandon❑ Plug for Redrill 9 Perforate New Pool 9 Repair Well❑ ,_ CI"teaAGpprove Program Anchorage Suspend Q- Plug Perforations 0 Perforate❑ Pull Tubing Time Extensign❑ Operations Shutdown 9 Re-enter Susp.Well 9 Stimulate❑ Alter Casing Other: 0 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Brooks Range Petroleum Corporation Development ❑ Exploratory 0 211-174- 3.Address: Stratigraphic 9 Service ❑ 6.API Number: 510 L Street,Suite 601,Anchorage,AK 99501 50-103206520000 - - 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 0 No 0 Mustang#1 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 390680 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): 9315 6170 T.O.0 @ 8975' Casing Length Size MD TVD Burst Collapse Structural Conductor 80' 20" 80' 80' Surface 3069'MD 9 5/8" 3069' 2448' 5750 2779 Intermediate 9110'MD 7" 9110' 6044' 7240 2879 Production N/A Liner N/A Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3 1/2" L-80 Kill String 1500' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program 9 BOP Sketch 9 Exploratory Q . Development ❑ Service 9 14.Estimated Date for 2/22/2012-15.Well Status after proposed work: Commencing Operations: Oil 9 Gas 9 WDSPL 9 Suspended ❑., - 16.Verbal Approval: Date: WINJ 9 GINJ ❑ WAG 9 Abandoned 0 Commission Representative: 2/21/2012 GSTOR 0 SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Brooks Range Petroleum Corp. Printed Name Lawrence J. Vendl Title Vice President, Exploration Signat Phone 907-865-5811 Date 2/22/2012 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 2 1 [.../0106 Plug Integrity 17 BOP Test 9 Mechanical Integrity Test 9 Location Clearance ❑ Other: .. 0,4_.f1 L y,,._4,. —1-es w' � -,"+-- i�'� c /0_7 Subsequent Form Required: /f 6 ^ 'O 7 APPROVED BY Approved by: 4 COMMISSIONER THE COMMISSION Date: Z j2_)I1 a- R.. ,.. ,MS„E.Ea.2 4 201 a/23/ix_ n n I n I . u A l --.. _ 02/21/2012 Temporary suspension of Mustang #1 Per diagram: • The 7", 26#, L-80 casing long string is TD'd and cemented in @ 9110' and /6044'tvd. • We propose to place a cement retainer in the 7" casing @ 9025' md. • We will down squeeze 15 bbls of 15.8 ppg cement. • Unsting from the retainer and balance 50' of 15.8 ppg cement on top of the retainer. • • Pull up above cement, wait. olv / 4P/sa - • RIH, tag cement and confirm integrity. _ • Run 3.5" kill string to 1600' and freeze protect, set a BPV in tubing hanger. - • Install and test tree. _ .- L/ , /2-1.4,Lc) • Install VR plugs. ( BP") Mustang 1 Proposed As Left Diagram BPV 3"H Vetco Gray 00 3 1/2" ID 2.992"/OD 4.25" • H 9.3# EUE-8rd 80'TVD/80'MD 20"Conductor 1,600'Diesel Freeze Protection in 3-1/2"Tubing Tam Collar 521'MD/520'TVD ) 1,600'Diesel Freeze Protection in 3-1/2"x 7"Annulus 9-5/8" Diesel Freeze Protection in 7 X 9 5/8"annulus 2357MD/2040'TVD 3-1/2"Kill String @ 1500'MD w/BPV in tubing hanger OH 12.25" 2,448'TVD 9 5/8" 40# 3,069'MD L-80 BTC ns ° r rr CD OH 8.5" Suspension Plug Back Cement 15.8 ppg TOC 8,975'MD -: 7"Retainer©9,030'MD D34" • 6,044'TVD 7" 26# 9,110' MD L-80 BTC-M • 6-1/8"OH @ 9315'MD/6170'TVD Page 1of1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, February 21, 2012 4:52 PM To: 'Bart Armfield' li Cc: DOA AOGCC Prudhoe Bay Subject: RE: Mustang#1 Suspensiopn Bart, You have verbal approval to suspend Mustang#1 as proposed below. A charted pressure test (1500 psi/30 min ) of the cement plug will also be needed as well as the tag witnessed by the AOGCC inspector. The BPV will need to be tested from below also to verify integrity. A copy of this email must be on the drilling rig until a signed copy of the sundry is available Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bart Armfield [mailto:barmfield@brpcak.com] Sent: Tuesday, February 21, 2012 4:42 PM To: Schwartz, Guy L (DOA) Cc: Bo Darrah; BRPC Rig Supervisor; Larry Vendl; Bixby, Bill Subject: Mustang #1 Suspensiopn Guy, Per our phone conversation, BRPC is planning to suspend operations on Mustang #1 for the 2012 drilling season. The proposed suspension would be detailed in a formal sundry application to follow. Operations would include the setting of a cement retainer in 7" casing at prescribed depth. Pressure test retain for integrity Pump cement under set retain at a volume to fill current open hole and in cased hole to bottom of retainer Pull out of retainer and dump " 50 ' of cement on top of retainer Tag cement on top of retainer as witnessed by AOGCC Pull DP out of hole and run in with kill string 3.5"tubing Pump freeze protect fluid in the hole to provide coverage to 2,000 ' Install wellhead equipment to secure well for further development planning Please advise if this program will meet your approval with formal sundry to be submitted. Thanks Bart 2/23/2012 , m m m -n CD CD CD CD CT a• a- N N N N w N -.. 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(a (n C a (a In c o n- c > (o F- } O � ia • - a) a . _� c o ro cu - oro v a o 0 0 (tea 0 Y L 0) c CD - Cl. o yJ ~ U >' F- = 0_ " - oaca) WYEC oro) c E a) 0 v) D -o d — 0 Z c 0 Z a) (a > > Z W c Z } a) a) a) I- O -2 u) > I- O o c ap . - E , Q % c -1c>a cc Q o) oE Q o 0 o E O a M o 3 > O a co O a U -- o cn w a; o @ cn w a, a u) w -0 E rnca• 70 c EtONoa � CCO Opo > O o m - a) W F- N- m o a3 w F- a) • - W F- U as c O) 0 Z 0j o_ a) a z W U) ° d Z o .0 � D w 0 (1) > > w a) c D w = D �O In ( U) U) 3 +-• Ni O (n () O 5 o U) U) .- L. � � o � 0 C� � 2ca°)ia) 0 U_ � po � 0 Cir rnsi- oo 0E- 2 a a E Eu 2 a s (r E _o 2 a s [YY N N N O O O N N N V IC) CO N N N a) a) a) LL lL LL 4 Page 1 of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, February 10, 2012 2:23 PM To: 'Torn Habermann'; Bart Armfield; Bixby, Bill Cc: Davies, Stephen F (DOA) Subject: RE: Mustang Intermediate Cement Procedure(PTD 211-1N) Bart, Per our meeting this morning your change to the cementing procedure for the 7" intermediate casing is approved. There were no hydrocarbon shows in the Brookian sands and a single stage cement job will satisfy regulatory requirements. (An ES stage tool at 6600'and was in original PTD plan) Note: there were some interesting gas shows at about 7800' and on the mud log but this zone will be covered easily as your TOC is planned at 7000' md. with the single stage job. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Tom Habermann [mailto:Thabermann@brpcak.com] Sent: Friday, February 10, 2012 2:04 PM To: Bart Armfield; Bixby, Bill Cc: Schwartz, Guy L(DOA) Subject: RE: Mustang Intermediate Cement Procedure Guy, Attached is the Halliburton analysis for the single stage cement job for Mustang#1. Bill plans to follow the Figure 7 procedure and reduce the displacement rate for the last 30 barrels just to be on the safe side. The LOT at the 9 5/8" casing shoe was 15.9. Let us know if you need anything further. Thanks-Tom Thomas Habermann Controller Brooks Range Petroleum 510 L Street, Suite 601 Anchorage, AK 99501 907 339 9965 Office 907 865 5809 Direct 2/10/2012 Page 2 of 2 From: Bart Armfield Sent: Friday, February 10, 2012 1:34 PM To: Tom Habermann; Bixby, Bill Cc: Schwartz, Guy L (DOA) Subject: Mustang Intermediate Cement Procedure Tom, Once Bill has provided approval of the cement plan,could you please attach the procedure to this note an send to Guy for the AOGCC approval. I will most likely be getting on the flight to the slope before this is complete. Thanks Bart Bart Armfield Chief Operating Officer Brooks Range Petroleum Corporation 510 L Street,Suite 601 Anchorage,Alaska 99501 direct-907-865-5840 cell-907-980-2483 2/10/2012 HALLIBURTON Included are several cementing scenarios for the 7" intermediate casing on Mustang 1. The casing is assumed to be run to 9196' inside an 8-1/2"hole. This modeling is done to avoid any unnecessary high ECD's during the cement job but to help maximize TOC height for a single stage cement job. Per a discussion with Mr. Bixby, we decided to aim for 30%open hole excess with TOC @ 7000' using 15.8 ppg cement. The mud weight is assumed to be 10.6 ppg at the time of the job. This is shown below along with several additional scenarios pumping the same cement volume but with a decreasing hole size. Modeling is shown with pumping the entire job at 5 bpm except for Figure 7 where we slow to 2 bpm for the remaining 30 bbl of displacement. The pore pressure is assumed to be 10.4 ppg and a fracture gradient of 15 ppg at TD. Figure 1 &2 are modeled with 30%excess(67.54 bbl cement)and its corresponding 30%excess hole size. The max ECD is shown to be 14.15 ppg with a TOC at 7000'. Figure 3 & 4 are modeled with 30%excess(67.54 bbl cement) and but this time in a 15%excess hole size. The max ECD is shown to be 14.70 ppg with a TOC at 6714'. Figure 5& 6 are modeled with 30%excess(67.54 bbl cement) and but this time in a gauge hole size. The max ECD is shown to be 15.45 ppg with a TOC at 6341'. Figure 7 is modeled the same as Figure 5 & 6 but this time slowing the displacement rate from 5 bpm to 2 bpm for the last 30 bbl of displacement. The max ECD is shown to be 14.5 ppg with a TOC at 6341'. • HALLI BURTON OptiCem Fluid Positions at Job End Time=93.29 min Volume In=466.34 bbl 0 Fluids Pumped • mil_525Mud 1000 t♦Water Modified Dual Spacer 2000 Mustang 1 1st Stage(1.15'4.97) IMM 3525Mud 3000 toe Depth 4000 •5000f. _ 5297.0(3708.4) 5637.6(3906-7) 6000 2 7000 7000.0(4708s) F 8000 9000 r,rx sS"' -Casing Annulus 10000 8 10 12 1416 15 10 5 0 10 15 20 Density(lb gal) Diameter Figure 1 —TOC 7000' with 30% excess (67.54 bbl cement)with 30% excess hole. OptiCem Downhole Pressure Profiles Minimum Hydrostatic Pressure and Maximum ECD vs.TVD • Pore Pressure Gradient Fracture Gradient \'6ninnmt Hydrostatic Gradient Maximum ECD 2000 Mous Casing Shoe —— 3000– 4000- 5000– . 6000- 7000 9 10 11 12 13 14 15 16 ECD(lb/gal) Figure 2—30% excess (67.54 bbl cement)with 30% excess hole @ 5 bpm displacement—14.15 ppg ECD. HALLIBURTON OptiCem Fluid Positions at Job End me=93.29 min.Volume In=466.34 bbl 0- Fluids Pumped um3525mud 1000— • MN Water MN Modified Dual Spacer 2000— <•Mustang 1 1st Stage(1.15:4 97) vanzam:5 25 Mud 3000— n Hole Depth 4000- j - •1 47885(3414.1) 5000 51735(3636.7) 6000- _ 67135(4538.9) 7000— . 8000- 4 9000-1— DdD —Casing 10000 —Annulus 8 10 12 1416 15 10 5 0 5 10 15 20 Density(lb gal) Diameter(in) Figure 3—TOC 6714' with 30% excess (67.54 bbl cement)with 15% excess hole. OptiCem Downhole Pressure Profiles Minimum Hydrostatic Pressure and Maximum ECD vs.TVD Pore Pressure Gradient Fracture Gradient Mfinimum Hydrostatic Gradient 2000 Pr.v ious Casin0_hc- 3000- 4000- :5: 000 4000- n _ 5000- 6000- 7000 0006000-7000 10 11 12 13 14 15 16 ECD(lb'gal) Figure 4—30% excess(67.54 bbl cement)with 15% excess hole @ 5 bpm displacement—14.70 ppg ECD. HALLIBURTON OptiCem Fluid Positions at Job End Time=93.29 min.Volume In=466.34 bbl 0- n'''-''''''' - '' - Fluids Pumped 3525 Mod 1000- ( NM water ME Modified Dual Spacer 2000- Mill Mustang 1 1st Stage(1.15.'4.97) - NM 35'25 Mud 3000— Dolan Hole Depth 4000— t 41273 13034.3) n -I 4570.1(3288.3) 0 5000- i. F' 6000- i1 - .[ 6341.1(4319.1) 7000- 1 8000- ` i 9000-1--- , . , . NID(TVD) .: —Annulus—Casing 000-1— MID(1VD) —Casing 10000 i' —Annulus 8 10 12 1416 15 10 5 0 5 10 15 20 Density(lb gal) Diameter(in) Figure 5—TOC 6341' with 30% excess (67.54 bbl cement)with gauge hole. OptiCem Downhole Pressure Profiles Mnimum Hydrostatic Pressure and Maximum ECD vs.'IND Pore Pressure Gradient Fracture Gradient V&ninnmt Hydrostatic Gradient Maximum ECD 2000 Pr vious Casitu(hoc. 3000- / 4000- 2 > ' 5000- 6000- 6000 i t I • , , • i 9 10 11 12 ' 13 14 15 16 ECD(lb gal) Figure 6—30% excess (67.54 bbl cement)with gauge hole @ 5 bpm displacement— 15.45 ppg ECD. HALLIBURTON OptiCem Downhole Pressure Profiles Minimum Hydrostatic Pressure and Maximum ECD vs.TVD Pore Pressure Gradient Fracture Gradient Mninun Hydrostatic Gradient 2000 P, .ious CasinaShoe 3000- 4000- =_ 2 5000- 6000- 7000 i 9 10 11 12 13 14 15 16 ECD(lb/gal) Figure 7—30% excess (67.54 bbl cement)with gauge hole @ 5 bpm displacement, slowing to 2 bpm for last 30 bbl of displacement— 14.5 ppg ECD. In conclusion, if we pump the 67.54 bbl of cement to account for a 30%excess hole size, but the hole turns out to be gauge,we would want to slow rate as described above to reduce our ECD's and stand the best chance at placing the designed cement column without breaking into the formation. Page 1 of 1 I Schwartz, Guy L (DOA) From: Bart Armfield[barmfield@brpcak.com] Sent: Tuesday, February 21,2012 4:54 PM To: Schwartz, Guy L(DOA) Cc: Bo Darrah; BRPC Rig Supervisor; Bixby, Bill; Larry Vendl Pri) Z//_./74-1 Subject: RE: Mustang#1 Suspensiopn Thank you Guy, We will post this note on the rig floor until formal and signed sundry is available. Thank you for your quick response Bart From: Schwartz, Guy L(DOA) [guy.schwartz@alaska.gov] Sent:Tuesday, February 21, 2012 4:52 PM To: Bart Armfield Cc: DOA AOGCC Prudhoe Bay Subject: RE: Mustang #1 Suspensiopn Bart, You have verbal approval to suspend Mustang#1 as proposed below. A charted pressure test (1500 psi/30 min) of the cement plug will also be needed as well as the tag witnessed by the AOGCC inspector. The BPV will need to be tested from below also to verify integrity. A copy of this email must be on the drilling rig until a signed copy of the sundry is available Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433(cell) From: Bart Armfield [mailto:barmfield@brpcak.com] Sent:Tuesday, February 21, 2012 4:42 PM To: Schwartz, Guy L(DOA) Cc: Bo Darrah; BRPC Rig Supervisor; Larry Vendl; Bixby, Bill Subject: Mustang #1 Suspensiopn Guy, Per our phone conversation, BRPC is planning to suspend operations on Mustang #1 for the 2012 drilling season. The proposed suspension would be detailed in a formal sundry application to follow. Operations would include the setting of a cement retainer in 7"casing at prescribed depth. Pressure test retain for integrity Pump cement under set retain at a volume to fill current open hole and in cased hole to bottom of retainer Pull out of retainer and dump " 50 'of cement on top of retainer Tag cement on top of retainer as witnessed by AOGCC Pull DP out of hole and run in with kill string 3.5"tubing Pump freeze protect fluid in the hole to provide coverage to 2,000 ' Install wellhead equipment to secure well for further development planning Please advise if this program will meet your approval with formal sundry to be submitted. Thanks Bart 2/21/2012 Page 1 of 1 I Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Saturday, February 18, 2012 3:33 PM To: 'Bart Armfield' Cc: Bo Darrah; Larry Vendl; BRPC Rig Supervisor; Mark C. Wiggin Subject: RE: Mustang#1 Completion Plan (PTD 211-174) Bart, You have verbal approval to complete the well as outlined in your email below. As you stated, submit a detailed procedure with a 403 sundry (Change of Scope) to the Commission on Tuesday. As we discussed the sundry should detail the new steps to be taken to complete the well , flowtest it and P &A (or suspend)the well once operations are finished for the season. Good luck with the flow test and evaluation of the well. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bart Armfield [mailto:barmfield@brpcak.com] Sent: Saturday, February 18, 2012 3:24 PM To: Schwartz, Guy L(DOA) Cc: Bo Darrah; Larry Vendl; BRPC Rig Supervisor; Mark C. Wiggin Subject: Mustang #1 Completion Plan Guy, Per our conversation earlier today, BRPC has had success in drilling through the Kuparuk section on Mustang #1 and are currently planning for the completion on the well. BRPC intends to complete the well as follows; ( very similar to N Tarn #1A) Hang a 4.5" slotted liner in the 7" intermediate casing to near TD RIH with 3.5 " tubing and permanent production packer and set in 7" casing above the 4.5" liner Tubing string would be inclusive of X nipples, gas lift mandrel and wire line entre sub The well will be secured and allow the drilling rig to be released from Mustang #1 with an anticipated jj• flow test planned within the next 7 to 10 days. ASRC well test spread would be commissioned to perform , - a short production flow test to clean wellbore and establish a daily flow rate from the well. J<<l fDue to the long weekend and AOGCC being closed for business on Monday, BRPC would have formal / sundry application ready for submittal for both completion and testing and ultimate suspension of the /�W well on Tuesday for review. Z(z A ( 'i Please advise your concurrence with this current plan and deliverables early this coming week. Regards Bart 2/18/2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Bart Armfield [barmfield@brpcak.com] Sent: Thursday, February 16, 2012 2:51 PM To: Schwartz, Guy L (DOA) H /7L-t- Cc: BRPC Rig Supervisor; Bo Darrah; Larry Vendl; Doug Hastings; Tom Habermann; Mark C. Wiggin; Larry J. Smith Subject: BRPC Mustang#1 Options Guys, Per our phone conversation this afternoon, and understanding the level of activity within the AOGCC at this current time. I wanted to present an awareness as to the potential outcomes for the Mustang#1 well based on results that are unknown at this time. 1. Absence of Kuparuk C&A sands- P&A current wellbore and potentially propose a sidetrack #1A to plan 2. Success in Kup C&A—Cement a 4.5 liner as done in N Tarn#1A and potentially test C&A zones independently 3. Success in Kup C only,absence of/or tight A sand —barefoot testing of Kup C through drillpipe under a production packer or cement retainer As results of current operations to drill out from under 7" intermediate casing become available, BRPC will provide AOGCC with proposed plan to perform evaluation as described in options above. We should commence drilling operations late this evening or early Friday morning. Please advise if you foresee any issues as presented. Thanks Bart Bart Armfield Chief Operating Officer Brooks Range Petroleum Corporation 510 L Street,Suite 601 Anchorage,Alaska 99501 direct-907-865-5840 cell-907-980-2483 2/16/2012 � Tp 2/1- 17L/ Brooks Range Petroleum OPERATED DAILY DRILLING/COMPLETION REPORT WELL: Mustang#1 ---"" AFE#DRILLING: 640038 2426 FSL 1666 FEL CONTRACTOR/RIG#: LOCATION: S2 T10N R7E UM Nabors Alaska Drilling/7ES API#: 50-103-20652-00-00 SPUD DATE: Feb 2 2012 SPUD DATE: Feb 2 2012 Jan 30 2012 MD: 108 ND: 108 FOOTAGE: 108 MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: PRESENT OPERATIONS: Move Rig off Tarn 1A,And move sub to Mustang 1 and spot same continue to rig up rig components Prep pits for move,Blow do steam to pits,Prep cuttings tank,roll tires;Move pits and stage on pad;Move sub off Tam la and stage on pad;Move pusher camp,Move and spot sub over well,spot pits,cuttings box,&Diesel storage tanks,Lay Herculite; R/U Hook up steam,electrical lines,H2O&air to pits,bermed pusher camp Jan 31 2012 MD: 108 ND: 108 FOOTAGE: MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: Install Berms around rig and Pits,NU diverter spool,Vetco Tech Install VG-LOC Gasket&test PRESENT OPERATIONS: to 1200 psi. 15-min.Cont to Berm,Take on H2O,N/U diverter Iine,Load 5"DP in shed,Function test Annular, Install berms around rig and pits,,N/U Diverter spool;Vetco grey tech install VG-Loc seals on starter head and 1200 psi, 15- min,RILDS.Continue Berm around rig;Take on Water in pits,Accept rig at 07:30 hrs.01/31/2012;Set MWD and Mud Loggers Tech offices,Test Sierra gas monitor system;Cont N/U Diverter line,N/U Surface riser&Bell nipple,Finish Berming camp&rig, C/O Fan in PFC;R/U,Mix Spud mud,load pipeshed with 5"drillpipe,Function test annular and Knife valve Feb 1 2012 MD: ND: FOOTAGE: MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: Load 5"DP in Shed,Repair Pipe shed doors,Load and Strap 5"DP,Diverter and Accumulator PRESENT OPERATIONS: &Monitors,wittnes by Lew Grimaldi,lnstall 1-sect.of Diverter Line,P/U and std back 5"'DP, M/U Bha, Load 5"Drill pipe in Shed;Welder repair Pipe Shed Door,Mechanic repair open and close cylinders;Load&Strap 5"Drillpipe; Function Diverter,Test Accumulator,Test Sierra gas monitor,Test pit Monitors,Lew Grimaldi W/AOGC Witness tests;Put Extension onto Diverter Line;PJSM on Picking up and standing back 5"Drillpipe;Pick up 81 jts 5"Drillpipe and 17 Jts 5" HWDP and Rack in Derrick.;PJSM:W/Sperry on Picking up BHA;Pick up Directional BHA Feb 2 2012 MD: 810 ND: 803 FOOTAGE: 810 MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: PRESENT OPERATIONS: wait on weather,load csg,dir drill f/108'to M/U BHA to 65';Wait on Weather and Load 9-5/8"Csg in Pipe shed,Diverter&Evac.Drill;Pre-Spud meeting,fill hole and stack;Dir DrIg F/108'to 191',10K,157 rpm,457 gpm,890 psi,ART=.69,AST=0 Jars=O hrs;POH F/191'to 98'blow down top drive;P/U BHA,Flex collars,Jars,F/98'to 190';Dir Drill 12.25"hole F/191'to 712',30K wob,550 gpm,1500 psi,RPM 50 td,143 mtr.;Pull and stand back 1-stand of HWDP due to galled box;Dir Drill 12.25"Hole F/712'to 715',wob 20k,550 gpm,1500psi,rpm 50 td,mtr 143,;POH,1-std,work on MWD;Repair MWD,Trouble with IP Address being connected to another computer;TIH 1-Std.to 715';Dir Drill 12.25"Hole F/715'to 760',WOB 25K,550 gpm,1480 psi,RPM 50 TD,143 MTR.Diff Psi. 1480 on 1355 psi off.;Drag chain trunk froze,Thaw out;Dir Drill 12.25"hole F/760'to 810'wob=25k,gpm=550,rpm=50 td, 143 mtr,1480 psi on btm,1355 psi off Feb32012 MD: 2,510 ND: 2,131 FOOTAGE: 1,700 MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: PRESENT OPERATIONS: Dir drill 12.25"hole F/810'MD to 1566',Circ&Cond,Wiper trip to 620'MD,Drill 12.25"hole, F/1566'to 2510' Dir Drill 12.25"hole F/810'to 1566',wob 20K,gpm 550,1700 psi,td rpm 60,mtr,143,ast=2.59 hrs,art=3.7 hrs,;CBU 1-1/2 times, gpm 500,rpm 30,;Back ream out of hole F/1566'to 620',;TIH F/620'to 1566',Take 25K wt,344 gpm,@ 910',wash/push cuttings or wood from 910'to 970'w/oriented HS,344 gpm,680 psi;TIH to 1471',wash F/1471'to 1566'No fill on bottom;Dir Drill 12.25"Hole F/1566'to 2318',wob 15-25K,560 gpm,rpm 80 td,psi off 1740,spm 190,TQ on 5-7K,TQ off 1-2K,UWT 88, DWT 65,RWT 61 ;Drilling 2318'-2510',TVD 2131'WOB 20K,200 spm,600 gpm,psi on 2270,psi off 2140,TQ on 6.5k TQ off 4.4k,UWT 90K,SOW 76K,RWT 75K,RPM 75,AST=2.31 hr Feb 4 2012 MD: 3,082 ND: 2,435 FOOTAGE: 572 MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: PRESENT OPERATIONS: Drill F/2510'to 3082',Circ&Cond',Backream F/2882'to 1471',TIH to 3082',Circ,TOH on Elevators,L/D BHa,R/U Csg tools,Run 9-5/8"Csg. Dir Drill 12.25"Hole F/2510'to 3082',WOB=30K,RPM 75 TD,MTR 155,614 gpm,PSI On=2440,Off=2290.;Circ&Recip& Rotate,Set 1-Std back per 1.5 BUS,3082'to 2882'circ total of 16000 strks,@ 600 gpm.;TOH,Backreaming hole F/2882'to 1471',530 gpm,40 rpm,3K tq,82K up,76K DN, ;TIH,to 3082'No problems;Circ,Rotate and Recip,Circ 2-BU,Stand back A stand every 30 min,600 gpm,40 rpm,;TOH,Wellbore Swab F/1070'to 880,20K over normal P/U,Top of slide area,POH to BHA,Monitor Well 5-Min.Static;Service rig.&PJSM;L/D Dir Bha,clean and clear rig floor. Feb 5 2012 MD: 3,082 ND: 2,426 FOOTAGE: MW: 0 LB PTD: RIG SUPERVISOR: Bill Bixby PBTD: PRESENT OPERATIONS: Rig up csg tools,Run 9-5/8"csg,Circ and Condition,Cmt csg,R/D csg tools,N/D Landing jt, N/D Diverter M/U Vetco Grey Hanger on Landing Jt and Drift run to Landing ring in Conductor.L/D Same;Rig up 9-5/8"Csg running tools; Run 75 Jts.9-5/8"40#L80 BTC,Avg TQ 9500 FT/LBS,Wash Last Jt to Bottom 3069',Land on Vetco Grey Hanger,;Circ and Cond mud for cementing;PJSM,Test lines to 3000 psi Pump 10 bbl H2O,Pump 60 bbl dual spacer 10.0 ppg,460 bbl(600 sxs)Type L-Permafrost 10.9 ppg,46.2 bbl.(220 sxs)Premium G; 15.8 ppg,Put in Place W/225 bbl Gel Mud,CIP@ 2100 Hrs. 01/05/2012,Bump Plug F/800 psi.to 1500 psi,hole 5-min.Release floats Held. ;190 bbl 10.9ppg cement to surface.;Rig Down casing running tools back out landing Jt.and remove from floor Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, February 01, 2012 1:35 PM To: 'Bart Armfield' Cc: DOA AOGCC Prudhoe Bay Subject: RE: Oxygen Scavenger Mustang 1 (PTD 211-174) Bart, Sounds good... That satisfies the requirement for H2S scavenger as specified by 20 AAC 25.065 (C) (2). As we discussed the rig (7ES) normally relies on BP local supply for the material. As you are somewhat remote the product should be made available at your location if in fact you do need to utilize it. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bait Armfield [mailto:barmfield@brpcak.com] Sent: Wednesday, February 01, 2012 1:27 PM To: Schwartz, Guy L(DOA) Cc: BRPC Rig Supervisor; Bixby, Bill; Larry Myers; Dan &Nan Shearer; Robert Haag; Bo Darrah Subject: Oxygen Scavenger Guy, After our phone discussion, I called the rig, and they have already made arrangements to have a sufficient quantity of MI—Swaco product Safe-Scav HSW on our Mustang#1 site location. Hopefully this will satisfy the regulation requirements. Bart Armfield Chief Operating Officer Brooks Range Petroleum Corporation 510 L Street,Suite 601 Anchorage,Alaska 99501 direct-907-865-5840 cell-907-980-2483 2/1/2012 c r\ \ IRA c.!.)) [0]? ' ¢ Ln, SEAN PARNELL,GOVERNOR ALASKA OIL ANI) GAS / 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION / ANCHORAGE,ALASKA 99501-3539 /j PHONE (907)279-1433 Bart Armfield FAX (907)276-7542 Chief Operating Officer Brooks Range Petroleum Corporation 510 L Street, Suite 601 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Mustang 1 Brooks Range Petroleum Corporation Permit No: 211-174 Surface Location: 2426' FSL, 1666' FEL, SEC. 02, T1ON, R7E, UM Bottomhole Location: 1901' FSL, 634' FEL, SEC. 01, T1ON, R7E, UM Dear Mr. Armfield: Enclosed is the approved application for permit to drill the above referenced exploration well. 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. 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. Sincerely, Daniel T. Seamount, Jr. Chair DATED this day of January, 2012. cc: Department of Fish 8s Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA EC ALS A OIL AND GAS CONSERVATION COMM DN ��EA [„f PERMIT TO DRILL JAN 0 5 2012 AAC 25.005 . la.Type of Work: lb.Proposed Well Class: Development-Oil f Service- Winj a Single Zone Q'.41 % itiitiseo GAO jg ••�{� Drill 0 . Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone ❑ Coalbed G �A...RHydrates u' Re-entry ❑ Exploratory 0 Service- WAG ❑ Service-Disp ❑ Sfiale Gas ❑ 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number: Brooks Range Petroleum Corporation Bond No. LPM 8842179 • Mustang 1 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 510 L Street,Suite 601,Anchorage,AK 99501 MD: 92_) ND: 6308 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Exploratory I!I Surface: 2426 FSL 1666 FEL S2 T10N R7E UM ADL 390680 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 1754 FSL 785 FEL S1 T10N R7E UM LAS 27505 Jan-20-2012 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1901 FSL 634 FEL S1 T10N R7E UM 2560 634 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 98 feet 15.Distance to Nearest Well Open Surface: x-465312.5 y- 5940809.97 Zone-4 GL Elevation above MSL: 69.3 feet to Same Pool: N/A 16.Deviated wells: Kickoff depth: 500 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 61 degrees Downhole: )347-psi a/00(5' Surface: wosi 38137 psi; '''s'ra- 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks j Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) I 24" 20"x34" N/A N/A Welded 80' 0' 0' 107 107 140 cf arctic grade cement I 12.25" 9-5/8" 40# L-80 BTC 2,495 0' 0' 2495 2,448 Cmtd to surf w/2818 c.f. 8.5" 7" 26# L-80 BTC-M 9,484 0' 0' 9,484 6,088 Cmtd to 4000'MD w/880 c.f. 6.125" N/A N/A N/A N/A N/A N/A N/A N/A N/A 4-0- 2 5 - 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): II, Casing Length Size Cement Volume MD ND Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v.Depth Plot 0 Shallow Hazard Analysis0 Diverter Sketch 0 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 Printed : - Bart Armfield Title Chief Operating Officer Signatu-->�!n"P Phone 907-339-9965 Date 6 I f c 4/ Zo 2._ Commission Use Only Permit to Drill API Number: -� Permit Approval ,, See cover letter for other Number: ��( ��� 50-/,D"14./( -- ,-L ate: I �1 r requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbedm thane,gas hydrates,or gas contained in shales: E Other: Ir.. Loa; p s 4:, AO f"' -re---'s-r- Samples req'd: Yes[ No❑ Mud log req'd: Yes 1 ' ❑ *-2500 / I A Nh G.,614.l/�t s'i- 6b...„-..., ) H2S measu5res: Yes 121/ ❑ Directional svy req'd: Yes Q No❑ Total t rJP '- C -- \442-k 0, t- s ..c....,-~'...� b" APPROVED BY THE COMMISSION / 3 // DATE: irr / ,COMMISSIONER .:, , ., -,-, 0R1GINAL ,------ tv , �� 1, ,.-v �� Form 10-401(Revised 712009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(9)) Submit in Duplicate RECEIVED STATE OF ALASKA DEC 2 9 2011 ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL Alaska Cii &Gas Cons.Commission 20 AAC 25.005 Anc.l msDP 1a.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone 0 1c.Specify if well is proposed for: Drill ❑✓ Redrill 0 Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates 0 Re-entry ❑ Exploratory 0 Service- WAG ❑ Service-Disp 0 Shale Gas 0 2.Operator Name: 5. Bond: Blanket Q Single Well 0 11.Well Name and Number: Brooks Range Petroleum Corporation Bond No. LPM 8842179 • Mustang 1 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 510 L Street,Suite 601,Anchorage,AK 99501 MD: 9929 ND: 6308 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Exploratory Surface: 2445 FNL 1609 FEL S2 T10N R7E UM , ADL 390680 f Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 3525 FNL 785 FEL S1 T10N R7E UM p LAS 27505 Jan-20-2012 Total Depth: :5 I'i7C Ai 7i; /6t' 9.Acres in Property: 14.Distance to Nearest Property: 3379 FNL 634 FEL UM ,/� 2560 i N D 634 4b.Location of Well(State Base Plane Coordinates- 27): 10.KB Elevation above MSL: 98 feet 15.Distance t Barest Well Open Surface: x-465312.5 s. y- 5940809.97 • Zone-4 GL Elevation above MSL: 69.3 feet to Same P ol: NIA 16.Deviated wells: Kickoff depth: 500 feet 17.Maximum Anticipated Pressures in psig(see 20 AA 5.035) Maximum Hole Angle: 61 degrees Downhole: 3347 psi ' Surface: 79 psi ` 18.Casing Program: Specifications Top - Setting Depth - Bottom / Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD ND MD N 5 (including stage data) 36" 20"x34" N/A N/A Welded 80' 0' 0' 107 07 140 cf arctic grade cement 12.25" 9-5/8" 40# L-80 BTC 2,495 0' 0' 2495 2,448 Cmtd to surf w/2818 c.f. 8.5" 7" 26# L-80 BTC-M 9,484 0' 0' 9,48 6,088 Cmtd to 4000'MD w/880 c.f. 6.125" N/A N/A N/A N/A N/A N/A N/A N/A 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and 'e-Entry Operations) Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): --Effect.Dep MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Ce, ent Volume MD TVD Conductor/Structural Surface l/ Intermediate Production 4/ \,j\,j Liner Perforation Depth MD(ft): C� P oration Depth ND(ft): 20. Attachments: Property Plat ❑✓ BOP Sketch 0 Dri ing Program ❑✓ Time v.Depth Plot ❑✓ Shallow Hazard Analysis❑ Diverter Sketch El S abed Report El 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 Printed Name Armfield , Title COO Signaturech.A44,WA, Phone 907-339-9965 Date (?_,f a J7 ©t , Commission Use Only Permit to Drill /7-7 API Nu ••er: f,L Permit Approval See cover letter for other Number: /([ l 50-/((_.'_2 �cG -1----4-)-et, Date: requirements. Conditions of approval: If box is c -cked,well may not be used to explore for,test,or produce coalbed m hang. as hydrates,or gas contained in shat Other: Samples req'd: Yes[V o[ Mud log req'd: Yes ❑ H25 measures: Yes No❑ Directional svy req'd: Yes [ No❑ r,,%"-",.- i-:-.:1',,.t`a ,.,-§ . .,.r°?,:r_..• ......5-.,, APPROVED BY THE COMMISSION / DATE: ,COMMISSIONER ORIGINAL ii, r IV 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 Dupiicat�q Brooks Range Petroleuni 510 L Street,Suite 601 *Anchorage,AK 99501 *Phone(907)339-9965*Fax(907)339-9961 RECEIVED December 29, 2011 2 ) Z.U11 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission A1e;aka Oil & Gas Cots.Commission 333 West 7th Ave., Suite 100 Anchorage Anchorage, Alaska 99501 RE: Application for Permit to Drill: Mustang#1 Dear Mr. Seamount, Brooks Range Petroleum hereby applies for a Permit to Drill a new oil exploration well Mustang #1 from an ice pad to the north of the 2L pad of Kuparuk field on the North Slope. Brooks Range plans to use Nabors Rig#7-ES to drill this well. The Mustang#1 is planned to have a 20"x34" insulated conductor pipe, a 9 5/8" surface casing and a 7" intermediate casing. A 6 1/8" production hole will be drilled through the Kuparuk interval and the reservoir section evaluated with LWD logs. After evaluation the pilot 6 1/8" hole will be plugged back with cement into the intermediate casing shoe. / The plan is to secure the well at the end of the season and to operationally shut down i�' until permanent production facilities are installed. S1.J 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. /o-!Z 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 general drilling program 4) Drilling Time versus Depth Plot 5) Proposed Wellbore Diagram 6) Pressure Calculations, Drilling Area Risks and Waste Disposal 7) Diagrams and Descriptions of the BOP Equipment to be Used 8) Directional Drilling Program 9) Drilling Fluid Program 10) Shallow Hazard Analysis 1 11) Cementing Program 12) Brooks Range does not anticipate the presence of H2S in any formations to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. 12) The following are Brooks Range's designated contacts for reporting responsibilities to the Commission: 1) Completion Report Lawrence Vendl,VP- Exploration (20 AAC 25.070) (907) 339-9965 2) Geologic Data and Logs Lawrence Vendl,VP- Exploration (20 AAC 25.071) (907) 339-9965 If you have any questions or require additional information, please contact me at (907) 865-5840. Sincerely, BROOKS RANGE PETROLEUM CORPORATION Bart Armfield COO enclosures cc: Larry Vendl -VP Exploration 2 N 6 n 'a vii n 0 0 tV . I V 331U a x a .4 n n ZO Sia 8 c. • y� J QQ ' 4 II 3 > n n 2. a a' m O a Z a o < 0 0 0 0 to NO I14-c MI a' Z cp.N Of Of ll.1 o 7cn p th N IS N U J co 0 co W >- < 0 - 0 0 K a NULai in e n m ro yr--, O o _� NU J :2 n N - U ¢a A. EiLu Z ccli t- ti V V V � Lu , LD a 3 G �rct P,' b o J v •v • • K N W N o O W((�� p .s4". 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IA \ W N Z p o \ ,. \/OO- \ O \ O\ °' Y a \ U\ \ O \\,9_1 5 O o 0 ` 156 '-po\ C^ ti \Ol a o, _ 1 a F \ M � Ls, 1 N\Il 1 Q m J CC CC CC CC m 44S.\ \ O\ X519• .-°11 o • Z d N N \\�...• '/ �oo ooW W O = CC U, o o Z IIvi N J 3 Z O a d 4 Z y i -2 z , 0 oQaCDx 1�-� II 7 �'a. O m F- . • .o O 0- U > NI- n c0 in w a a r Mustang #1 /_/3_,Z General Drilling Program 1. Ensure regulatory compliance training is complete and key personnel are fully aware of responsibilities. 2. Install 20 x 34" conductor and a cellar. 3. Diverter riser assembly should be made to length according to diverter space out schematic 4. Rig up Nabors 7ES. 5. Conduct specific tour safety meetings with each crew on the potential of gas hydrates or shallow gas and the handling of same. 6. Pick up and stand back 2,500' of 5" drill pipe and 500' of HWDP. 7. Notify the AOGCC of intent to spud and plans to perform diverter function test and drills. 8. Ensure that pipe rams are available for the following pipe sizes: 5" drill pipe, 4" drill pipe, 7" casing and 3-1/2"tubing. BOP configuration for the first BOP test is a follows (from top to bottom): 13 5/8" 5K Hydril Annular BOP c 13 5/8" 5 K Variable 6" to 3 1/2" pipe rams 13 5/8" 5 K Blind/Shear rams 13 5/8" 5 K Variable 5" to 2-7/8" pipe rams 9. Install 211A" 2000 psi diverter with 16" outlet line. Fill diverter& riser with water to check for leaks. Function test and record on IADC drilling report. Send completed Diverter Test form to AOGCC as specified on the form. Hold diverter drill prior to drilling surface hole. RU cement return lines from the 4" outlets on the 20". 10. A conventional spud mud will be used on the surface hole 11. MU 12-1/4" bottomhole assembly. Test the BHA below the rotary table. 12. Spud well with reduced drilling parameters. Gradually increase drilling parameters when the BHA is below the conductor shoe. 13. Drill 12-1/4" hole to 2,495' as per the directional plan and mud plan. Controlling ROP may be necessary to prevent packing off, lost circulation or flow over the top of the bell nipple. No sliding is expected in this section. 14. Actual TD will be based on LWD data so as to place shoe in minimum 50' shale section if possible. Geologist will assist in picking casing seat. 15. Pump a high-vis sweep at TD and note surface to surface strokes as an indication of washouts. Make calculation of average hole size and consider adjusting excess cement volumes based on results. 16. Make short trips as required, circulate and condition mud and POH. Lay down the 12- 1/4" BHA and download all memory data from MWD/LWD tools. 17. Rig up casing running equipment and Frank's top drive fill up tool. lake dummy run with mandrel hanger and landing joint and mark joint on depth. 18. Run 9 5/8", 40#, BTC casing, monitoring returns and filling casing with fill up tool. Install a TAM collar at 500 ft to allow for a second stage job if needed. 19. Cement 9 5/8" casing according to the cementing designs. Displace with spud mud. (Notify AOGCC immediately if the cement did not reach surface. 20. Nipple down the diverter. 21. Make up wellhead and install, nipple up 5K 13 5/8" BOP stack. 22. Notify AOGCC 24 hours prior to testing BOPE. Test BOPE rams to 250 psi low and 4,000 psi high and 250/2500 psi for the annular (See Permit to Drill for reference). 23. MU 8-1/2" BHA and test. Spud mud will be used to drill out the shoe track. Test casing to psi for 30 min, chart the test. Drill shoe track and 20' of new formation. 24. Switch out to OBM before LOT. (Minimum acceptable LOT is 11.7 ppg based on max MW for 8.5"hole of 10.7 ppg plus 1.0 ppg) 25. Perform LOT. Record the results on the Morning Report and in the IADC report. 26. MU 8.5" BHA with LWD (GR, RES). Circulate and establish baseline parameters. 27. Drill a deviated 81/2" hole with mud motor and LWD-PWD system to — 9484' MD/6088'. The wellsite geologist will assist in formation tops determination. 28. Circulate and condition mud and POOH. 29. Rig up casing running equipment and Frank's top drive fill up tool. Make sure that safety joint and crossover with FOSV is available betore running casing. Make dummy run with mandrel hanger and landing joint and mark joint on depth. 30. Change top rams to 7"rams and test with 7" test joint to permit test pressure 31. Run 7", 26#, BTC-M casing, monitoring returns and filling casing with fill up tool. 32. Cement 7" casing in two stages according to the cementing designs. Top of cement is planned at 4000'. 33. MU 6 1/8" BHA and RIH. Drill out the ES-Cementer plug at 6600' and clean out 7" to ^'20' above float collar. 34. Pressure test 7" casing to 3500 psi for 30 min. Drill out shoe track. ;he minimum acceptable LOT value after drilling out the 7" shoe track and 20" of new formation is 13.8 ppg (12.8ppg-mud weight plus 1.0 ppg for ECD) 35. Start drilling 6 1/8" hole. The LWD logging suite will include GR, RES, DEN, NEU. 36. Drill through the Kuparuk. Allow ample rat hole to run all LWD tools through the Kuparuk to planned TD. Back-ream and MAD pass through the Kuparuk sands. POOH BHA 37. Prepare to P&A the open-hole section. Obtain an approval from AOGCC to P&A the production section. 38. Plug back the 6 1/8" open hole with cement plugs from TD to 9284' (200ft into the 7" casing). 39. WOC, run a kill string, freeze-protect with brine and diesel, secure well. 40. Rig down and move to the next location. Mustang 1 Proposed Well Completion Diagram Dec-11 ►•. Sa e —i411 80'TVD 20"x 34" Insulated Conductor 80'MD TAM collar at 500' £ 4 1700'Diesel Freeze Protection in 7 X 9 5/8"annulus • OH 12.25" Incl 35 deg g j 2,448'TVD 9 5/8" 40# 2,495'MD L-80 BTC •— T 'e� 4000'MD Top of Cement • i OH 8.5" 4,472'TVD , 6,600'MD ES Cementer - Stage Tool •_ �, OD Cpl.7.656" 6,088'TVD 7" 26# Drift 6.151" Incl 61 deg 9,484' MD L-80 BTC-M ID 6.278" OH 6.125" no casing planned in this section 6308'TVD Incl 61 deg 9929'MD MASP Calculations Casing Design Verification Calculations Brooks Range Petroleum Corporation Maximum Anticipated Pressure Calculations, Drilling Area Risks and Waste Disposal For Mustang#1 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 2,690' 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)=2,448' (0.494-0.10) =962.5 psi 8-1/2" Hole Section The maximum anticipated pressure (MASP)for the 8-1/2" hole section will be the formation pore pressure (less a full gas column to the surface) at 9484' MD/6088'ND. Offsetting well information indicates that pore pressure at ND will be a maximum of 10.7 ppg(or 0.5564 psi/ft). Calculations: 8-1/2" hole section MASP (pore pressure) = (6088 ft) (0.5564-0.10) = 2779 psi 6-1/8" Hole Section The maximum anticipated pressure (MASP)for the 6-1/8" hole section will be the formation pore pressure (less a full gas column to the surface) at 9929' MD/6308'ND. Offsetting well information indicates that pore pressure at ND will be a maximum of 12.44- 44 ppg r 0 6 &psiLf ) --. 4308 i{ob7rs, Calculations: ASr' 6-1/8" hole section M MASP (pore pressure) = (6308 ft) (0.6448-0.10) =3437 psi With MASP in the 6 1/8" open hole section is expected to be 3437 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to the Mustang 1 is Nort and North Tarn 1A located approximately 60 feet away at surface and 0 ft at TD he Halliburton's directional simulation indicates there is no anticipated in e er nce expected between wellbores. ?er3vo MI) car-c{� = IL r Disposal of Muds and Cuttings: I is iz All drill cuttings and waste drilling fluid will be disposed in BP's grind and inject facility at Prudhoe Bay. Mustang 1 Casing Design Verification Planned Casing program 9-5/8" 7" Surface Casing Intermediate Casing Depth (MD) 2,495' 9,484' Depth (TVD) 2,448' 6,088' 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 well North Tarn 1 and KRU 2L-03. Casing 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 ND of 6,088': MASP = (6,088') ((10.7 ppg x 0.052)-0.10 psi/ft) = 2779 psi DFb = burst strength/ burst stress = 5,750 psi/2779 psi = 2.07 7';26#, L-80, BTC-M Intermediate Casing: Maximum burst stress is formation hydrostatic pressure at TD less a gas column to surface: Burst stress = (6308') ((12.4 ppg x 0.052)-0.10psi/ft) = 3436 psi DFb = burst strength/ burst stress = 7240 psi/3436 psi = 2.1 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 2,448' = 1209 psi Internal pressure w/gas only =0.10 x 2,448' = 245 psi Collapse stress = 1209 psi - 245 psi = 964 psi DFc=collapse rating/collapse stress = 3,090/964 =3.2 7",26#, L-80, BTC-M Intermediate Casing: External pore pressure = 12.4 x 0.052 x 6308' =4067 psi Internal pressure w/gas only =0.10 x 6308' = 631 psi Collapse stress =4067 psi—631 psi =3436 psi DFc =collapse rating/collapse stress =5410psi/3436 psi = 1.57 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= 2,495' x 40 lb/ft =99,800# Pipe weight in fluid = Pipe wt.(in air)x Buoyancy Factor 99,800#x 0.8548 =85,309# DFt = body tensile strength/buoyed wt = 916,000#/85309# = 10.7 7n 26#, L-80, 8TC-M Intermediate Casing: Weight in air=9552'x 26 lb/ft = 248,352 # Pipe weight in fluid = Pipe wt. (in air)x Buoyancy Factor Pipe weight in fluid =248,352#x 0.8365 = 207,746# DFt =joint tensile strength/buoyed wt =604000#/207,746# = 2.90 a) co _ _ �__--__ __ • N N L Ill h a Y U ah a) N 7 CO N To a W7 Y I N U, N 00 N N tD O t N N ODC C N in 4) I— CU 0 N G) O 0) L a) Co Mco N I- E N C 4-, C O 4-, 1J) od _G >+ 2 Coa m E U, Oa n W13 0 4-- m N > y a Z r' t (o N Q'CD O co I# 0 Z a c C cu 0 Cl) — U 3 2 co 0 N O1 OC L =• N U f6 t c —1 • r ::44//, a M N • O O O O O O O I O O O O O O N co cc O N (;aa;) Laded painseayy 1 Mustang #1 General Drilling Program 1. Ensure regulatory compliance training is complete and key personnel are fully aware of responsibilities. 2. Install 20 x 34" conductor and a cellar. 3. Diverter riser assembly should be made to length according to diverter space out schematic 4. Rig up Nabors 7ES. 5. Conduct specific tour safety meetings with each crew on the potential of gas hydrates or shallow gas and the handling of same. 6. Pick up and stand back 2,500' of 5" drill pipe and 500' of HWDP. —_. `( �' 7. Notify the AOGCC of intent to spud and plans to perform diverter function test and drills. 8. Ensure that pipe rams are available for the following pipe sizes: 9-5/8" casing, 5" drill pipe, 4" drill pipe, 7" casing and 3-1/2"tubing. 9. Install 21''A" 2000 psi diverter with 16" outlet line. Fill diverter& riser with water to check for leaks. Function test and record on IADC drilling report. Send completed Diverter Test form to AOGCC as specified on the form. Hold diverter drill prior to drilling surface hole. RU cement return lines from the 4" outlets on the 20". t 4- EDED 10. A conventional spud mud will be used on the surface hole. 11. MU 12-1/4" bottomhole assembly with LWD GR.Test the BHA belo the rotary table. 12. Spud well with reduced drilling parameters. Gradually increase drilling parameters when the BHA is below the conductor shoe. 13. Drill 12-1/4" hole to 2,495' as per the directional plan and mud plan. Controlling ROP may be necessary to prevent packing off, lost circulation or flow over the top of the bell nipple. No sliding is expected in this section. 14. Actual TD will be based on LWD data so as to place shoe in minimum 50' shale section if possible. Geologist will assist in picking casing seat. 15. Pump a high-vis sweep at TD and note surface to surface strokes as an indication of washouts. Make calculation of average hole size and consider adjusting excess cement volumes based on results. 16. Make short trips as required, circulate and condition mud and POH. Lay down the 12-1/4" BHA and download all memory data from MWD/LWD tools. 17. Rig up casing running equipment and Frank's top drive fill up tool. 18. Run 9 5/8",40#, BTC casing, monitoring returns and filling casing with fill up tool. Install a TAM collar at 500 ft to allow for a second stage job if needed. 19. Cement 9 5/8" casing according to the cementing designs. Displace with spud mud. (Notify AOGCC immediately if the cement did not reach surface. u- 20. Nipple down the diverter. 21. Make up wellhead and install, nipple up 5K 13 5/8" BOP stack. 22. Notify AOGCC 24 hours prior to testing BOPE. Test BOPE rams to 250 psi low and 4, psi at_000 high and 250/2500 psi for the annular (See Permit to Drill for reference). &P co„.-4 6c4-4„,s 23. MU 8-1/2" BHA and test. Spud mud will be used to drillout the shoe track.Test casing to 3,000 psi for 30 min, chart the test. Drill shoe track and 20' of new formation. 24. Switch out to OBM before LOT. 25. Perform LOT. Record the results on the Morning Report and in the IADC report. 26. MU 8.5" BHA with LWD (GR, RES). Circulate and establish baseline parameters. 27. Drill a deviated 8'A" hole with mud motor and LWD-PWD system to ^'9484' MD/6088'. The wellsite geologist will assist in formation tops determination. 28. Circulate and condition mud and POOH. 29. Rig up casing running equipment and Frank's top drive fill up tool. 30. Run 7", 26#, BTC-M casing, monitoring returns and filling casing with fill up tool. 31. Cement 7" casing in two stages as per the cementing designs. TOC is planned at 4000'. 1 32. MU 6 1/8" BHA and RIH. Pressure test 7" casing to 3500 psi for 30 min. Drill out shoe track or- 4.'-'.- ( Si-):- Tc.:.( c c6.o, 33. Start drilling 6 1/8" hole.The LWD logging suite will include GR, RES, DEN, NEU. IL-- k i t> 34. Drill through the Kuparuk. Allow ample rat hole to run all LWD tools through the Kuparuk to d'• planned TD. Back-ream and MAD pass through the Kuparuk sands. POOH BHA. 35. Prepare to P&A the open-hole section. 36. Plug back the 6 1/8" open hole with cement plugs from TD to 200ft into the 7" / casing. _ Rt -TTNs�te 7`� in-61 7 37. WOC, run a kill string, freeze-protect with brine and diesel, secure well. (..c j, /ti..04. .—. (f 51,,x(38. Rig down and move to the next location. w4& -�. te. Brooks Range Petroleum Corporation Maximum Anticipated Pressure Calculations, Drilling Area Risks and Waste Disposal For Mustang#1 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 2,690' 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 IMASP (12-1/4" hole)=2,448' (0.494-0.10) =964.5 psi 8-1/2" Hole Section The maximum anticipated pressure (MASP)for the 8-1/2" hole section will be the formation pore pressure (less a full gas column to the surface) at 9484' MD/6088'TVD. Offsetting well information indicates that pore pressure at ND will be a maximum of 10.7 ppg (or 0.5564 psi/ft). Calculations: 8-1/2" hole section MASP (pore pressure) = (6088 ft) (0.5564-0.10) = 2779 psi , E 6-1/8" Hole Section � ,,,�-. l 13 The maximum anticipated pressure (MASP) for the 6-1/8" hole section will be the formation pore pressure (less a full gas column to the surface) at 9929' MD/6308' TVD. Offsetting well information indicates that pore pressure at TVD will be a maximum of 10.7 ppg (or 0.5564 psi/ft). NJ Calculations: • `41-6 6-1/8" hole section • MASP (pore pressure) = (6308 ft) (0.5564-0.10) = 2879 psi With MASP in the 6 1/8" open hole section is expected to be 2879 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risks: The closest wellbore to the Mustang 1 is North Tarn 1 and North Tarn 1A located approximately 120 feet away at surface and 6,685 ft at TD.The Halliburton's directional simulation indicates there is no anticipated interference expected between wellbores. 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. Mustang 1 Casing Design Verification Planned Casing program 9-5/8" 7" Surface Casing Intermediate Casing Depth (MD) 2,495' 9,484' Depth (ND) 2,448' 6,088' Hole size 12-1/4" 8-1/2" F_. 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 well North Tarn 1 and KRU 2L-03. Casing 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 TVD of 6,088': MASP = (6,088') ((10.7 ppg x 0.052)-0.10 psi/ft) = 2779 psi DFb = burst strength/ burst stress = 5,750 psi/2779 psi = 2.97 7", 26#, L-80, BTC-M Intermediate Casing: Maximum burst stress is formation hydrostatic pressure at TD less a gas column to surface: Burst stress = (6308') ((10.4 ppg x 0.052)-0.10psi/ft) = 2879 psi DFb = burst strength/ burst stress = 7240 psi/2879 psi = 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 2,448' = 1209 psi Internal pressure w/gas only = 0.10 x 2,448' = 245 psi Collapse stress = 1209 psi - 245 psi =964 psi DFc= collapse rating/collapse stress = 3,090/964 = 7",26#, L-80, BTC-M Intermediate Casing: External pore pressure = 10.7 x 0.052 x 6308' = 3509 psi Internal pressure w/gas only = 0.10 x 6308' = 631 psi Collapse stress = 3509 psi —631 psi = 2879 psi DFc= collapse rating/collapse stress = 5410psi /2879 psi = 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 = 2,495' x 40 lb/ft = 99,800# Pipe weight in fluid = Pipe wt.(in air) x Buoyancy Factor 0,7L ( 43-fa_ 99,800#x 0.8548 = 85,309# DFt = body tensile strength / buoyed wt = 916,000#/85309# _ 7", 26#, L-80, BTC-M Intermediate Casing: Weight in air=9484' x 26 lb/ft = 248,352 # Pipe weight in fluid = Pipe wt. (in air) x Buoyancy Factor Pipe weight in fluid = 248,352#x 0.8365 = 207,746# DFt=joint tensile strength/buoyed wt =604000#/207,746# =2.90 'n• 11p < E 6 Iji 0 11111 1 g ';!r w 0 1 1 Z i' 1 [ ul Z r ,.... i' z d Ili d F ------- .-- 1 H. :1 .i ! i , ..... n 1 cc 1 x i` 3 s 11 z A' z; ,R 1 1 ziri 5. g 61111111 UiI1r W W Ai ii .x ..c.,, A C > Y i/ W Q hNli0IhI1; 1 - III Q l' d a4 �111 .v 4& \ _�IHiI-.rte 0 \ 8 4 g 1 1 S '4,. b O m O h v 4 1 j 1 ADDITIONAL INFORMATION 1. MUD LEG I.D. 10" I.D. 2. TOTAL LENGTH OF U-TUBE PIPING 34 L.F. 3. TOTAL NUMBER OF BENDS IN U-TUBE 6 TOTAL 4. ANGLE OF BENDS IN U-TUBE (45,90,180) 5 ® 90' - 1 0 45' 5. VENT LINE HEIGHT ABOVE GROUND LEVEL 43'-7 1/2" 6. VENT LINE I.D. 10" I.D. 17'-8 " $JJIh Nabors Alaska A NABORS INDUSTRIES Company NABORS RIG 7ES MUD GAS SEPARATOR PRODUCED BY: JOE ALSTON SEPTEMBER 6, 2005 v 8'-6" II II 29.25" I.D. U—TUBE PIPING 90° 90° 90' � FROM CHOKE , 3.438" I.D. 45° 7'_10 " 11 '-1" 8 . 90 90 Ilimk ° ° iikiiiNg O J co \o H co { d i VII. 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y U >o - 1E d O Or- �� bddf0 Wo -. - U 6) O�/) 3 01 ovm 0>10 + _ o > L G F>-Nm o y zo m Z d o11 1 1 1 1 1 1 1 1 I 1 1 I 1 1 I I 1 1 1 1 1 1 11 I I 1 I I IT I 1 ' I 1 I ] I , I 1 i I I ; 1 i I 1 1 1 1 1 1 1 1 1 1 0 ' 0 00 0 0 0 0 0 o O o 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 0 IA N O Co N N OM M 7 a 10i0 N t00 CID (ui/u 0006) 43dea leoPeA anal Halliburton Company HALLIBURTON Standard Proposal Report Database: .Sperry PROD Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Company: Brooks Range Petroleum Corporation TVD Reference: Planned Well @ 97.80ft(69.30'+28.51 Project: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.51 Site: Tam North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Project Tarn Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Tarn Site Position: Northing: 5,940,773.00 ft Latitude: 70.249195 From: Map Easting: 465,198.00ft Longitude: -150.281162 Position Uncertainty: 0.00 ft Slot Radius: " Grid Convergence: -0.26 ° Well Plan Mustang 1 -Slot Slot I Well Position +N/-S 0.00 ft Northing: 5,940,809.97 ft Latitude: 70.249298 +E/-W 0.00 ft Easting: 465,312.50 ft • Longitude: -150.280238 Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 69.30 ft Wellbore Mustang 1 Pilot Hole Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (0) (nT) BGGM2011 12/31/2011 20.49 80.81 57,615 Design Mustang 1 Pilot Hole WP05 Audit Notes: Version: Phase: PLAN Tie On Depth: 28.50 Vertical Section: Depth From(TVD) +N/-S +El-W Direction (ft) (ft) (ft) (°) 28.50 0.00 0.00 94.74 Plan Sections Measured Vertical TVD Dogleg Build Turn Depth Inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (ft) (0) (0) (ft) ft (ft) (ft) (°1100ft) (°/100ft) (°/100ft) (0) 28.50 0.00 0.00 28.50 -69.30 0.00 0.00 0.00 0.00 0.00 0.00 1,400.00 0.00 0.00 1,400.00 1,302.20 0.00 0.00 0.00 0.00 0.00 0.00 1,650.00 5.00 103.34 1,649.68 1,551.88 -2.52 10.61 2.00 2.00 0.00 103.34 2,494.49 30.33 103.34 2,447.80 2,350.00 -61.17 257.96 3.00 3.00 0.00 0.00 2,514.49 30.33 103.34 2,465.06 2,367.26 -63.50 267.79 0.00 0.00 0.00 0.00 3,269.24 60.48 100.84 2,988.91 2,891.11 -171.74 787.84 4.00 3.99 -0.33 -4.33 8,401.57 60.48 100.84 5,518.00 5,420.20 -1,011.56 5,174.10 0.00 0.00 0.00 0.00 9,603.78 60.48 45.00 6,147.80 6,050.00 -722.91 6,113.50 4.00 0.00 -4.64 -104.63 9,928.50 60.48 45.00 6,307.80 6,210.00 -523.10 6,313.30 0.00 0.00 0.00 0.00 / 12/12/2011 10:04:19AM Page 2 COMPASS 2003.16 Build 73 - Halliburton Company HALLIBURTOIIJ Standard Proposal Report Database: .Sperry PROD Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Company: Brooks Range Petroleum Corporation TVD Reference: Planned Well @ 97.80ft(69.30'+28.5) Project: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site: Tarn North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Veil Section (ft) r) (°) (ft) ft (ft) (ft) (ft) (ft) -69.30 28.50 0.00 0.00 28.50 -69.30 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 100.00 0.00 0.00 100.00 2.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 200.00 0.00 0.00 200.00 102.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 300.00 0.00 0.00 300.00 202.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 305.80 0.00 0.00 305.80 208.00 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 SV3 400.00 0.00 0.00 400.00 302.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 500.00 0.00 0.00 500.00 402.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 600.00 0.00 0.00 600.00 502.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 700.00 0.00 0.00 700.00 602.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 800.00 0.00 0.00 800.00 702.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 900.00 0.00 0.00 900.00 802.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 1,000.00 0.00 0.00 1,000.00 902.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 1,100.00 0.00 0.00 1,100.00 1,002.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 1,200.00 0.00 0.00 1,200.00 1,102.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 1,300.00 0.00 0.00 1,300.00 1,202.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 1,307.80 0.00 0.00 1,307.80 1,210.00 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 SV1 1,397.80 0.00 0.00 1,397.80 1,300.00 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 Base Perm 1,400.00 0.00 0.00 1,400.00 1,302.20 0.00 0.00 5,940,809.97 465,312.50 0.00 0.00 Start Dir 1°/100':1400'MD,1400'TVD 1,500.00 2.00 103.34 1,499.98 1,402.18 -0.40 1.70 5,940,809.56 465,314.20 2.00 1.73 1,600.00 4.00 103.34 1,599.84 1,502.04 -1.61 6.79 5,940,808.33 465,319.28 2.00 6.90 1,650.00 5.00 103.34 1,649.68 1,551.88 -2.52 10.61 5,940,807.41 465,323.09 2.00 10.78 Start Dir 3°/100':1650'MD,1649.68'TVD 1,700.00 6.50 103.34 1,699.43 1,601.63 -3.67 15.48 5,940,806.23 465,327.96 3.00 15.73 1,800.00 9.50 103.34 1,798.45 1,700.65 -6.88 29.02 5,940,802.96 465,341.49 3.00 29.49 1,900.00 12.50 103.34 1,896.60 1,798.80 -11.28 47.59 5,940,798.47 465,360.03 3.00 48.35 2,000.00 15.50 103.34 1,993.62 1,895.82 -16.87 71.12 5,940,792.78 465,383.54 3.00 72.27 2,100.00 18.50 103.34 2,089.23 1,991.43 -23.61 99.57 5,940,785.90 465,411.95 3.00 101.18 2,200.00 21.50 103.34 2,183.19 2,085.39 -31.50 132.84 5,940,777.86 465,445.18 3.00 134.99 2,300.00 24.50 103.34 2,275.23 2,177.43 -40.51 170.86 5,940,768.67 465,483.15 3.00 173.62 2,400.00 27.50 103.34 2,365.10 2,267.30 -50.63 213.51 5,940,758.36 465,525.75 3.00 216.96 2,494.49 30.33 103.34 2,447.80 2,350.00 -61.17 257.96 5,940,747.62 465,570.15 3.00 262.13 End Dir :2494.49'MD,2447.8'TVD-9 5/8" 2,500.00 30.33 103.34 2,452.56 2,354.76 -61.81 260.67 5,940,746.97 465,572.85 0.00 264.88 2,514.49 30.33 103.34 2,465.06 2,367.26 -63.50 267.79 5,940,745.24 465,579.97 0.00 272.12 Start Dir 4°/100':2514.49'MD,2465.06'TVD i 2,600.00 33.75 102.88 2,537.54 2,439.74 -73.78 311.97 5,940,734.76 465,624.09 4.00 316.99 '' 2,636.71 35.21 102.70 2,567.80 2,470.00 -78.38 332.23 5,940,730.07 465,644.34 4.00 337.57 K-10 2,700.00 37.74 102.43 2,618.69 2,520.89 -86.56 368.95 5,940,721.72 465,681.01 4.00 374.84 2,800.00 41.73 102.05 2,695.57 2,597.77 -100.10 431.41 5,940,707.90 465,743.40 4.00 438.20 2,900.00 45.72 101.73 2,767.82 2,670.02 -114.33 499.04 5,940,693.35 465,810.96 4.00 506.77 12/12/2011 10:04:19AM Page 3 COMPASS 2003.16 Build 73 Halliburton Company HALLIBURTON Standard Proposal Report Database: .Sperry PROD Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Company: Brooks Range Petroleum Corporation TVD Reference: Planned Well @ 97.80ft(69.30'+28.5) Project: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site: Tarn North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (0) (0) (ft) ft (ft) (ft) (ft) (ft) 2,737.28 3,000.00 49.72 101.45 2,835.08 2,737.28 -129.19 571.50 5,940,678.16 465,883.35 4.00 580.22 3,100.00 53.71 101.21 2,897.03 2,799.23 -144.61 648.45 5,940,662.39 465,960.22 4.00 658.18 3,200.00 57.71 100.98 2,953.35 2,855.55 -160.50 729.52 5,940,646.13 466,041.20 4.00 740.28 3,269.24 60.48 100.84 2,988.91 2,891.11 -171.74 787.84 5,940,634.62 466,099.47 4.00 799.34 End Dir :3269.24'MD,2988.91'TVD 3,300.00 60.48 100.84 3,004.07 2,906.27 -176.78 814.13 5,940,629.47 466,125.73 0.00 825.95 3,400.00 60.48 100.84 3,053.35 2,955.55 -193.14 899.60 5,940,612.71 466,211.11 0.00 912.47 3,500.00 60.48 100.84 3,102.62 3,004.82 -209.50 985.06 5,940,595.96 466,296.49 0.00 999.00 3,600.00 60.48 100.84 3,151.90 3,054.10 -225.87 1,070.52 5,940,579.20 466,381.87 0.00 1,085.52 3,700.00 60.48 100.84 3,201.18 3,103.38 -242.23 1,155.99 5,940,562.45 466,467.25 0.00 1,172.04 3,800.00 60.48 100.84 3,250.46 3,152.66 -258.59 1,241.45 5,940,545.69 466,552.62 0.00 1,258.56 3,900.00 60.48 100.84 3,299.73 3,201.93 -274.96 1,326.91 5,940,528.94 466,638.00 0.00 1,345.09 4,000.00 60.48 100.84 3,349.01 3,251.21 -291.32 1,412.38 5,940,512.18 466,723.38 0.00 1,431.61 4,100.00 60.48 100.84 3,398.29 3,300.49 -307.68 1,497.84 5,940,495.43 466,808.76 0.00 1,518.13 4,200.00 60.48 100.84 3,447.57 3,349.77 -324.05 1,583.30 5,940,478.67 466,894.14 0.00 1,604.65 4,300.00 60.48 100.84 3,496.84 3,399.04 -340.41 1,668.77 5,940,461.92 466,979.52 0.00 1,691.18 4,400.00 60.48 100.84 3,546.12 3,448.32 -356.77 1,754.23 5,940,445.16 467,064.90 0.00 1,777.70 4,500.00 60.48 100.84 3,595.40 3,497.60 -373.14 1,839.69 5,940,428.41 467,150.27 0.00 1,864.22 4,600.00 60.48 100.84 3,644.68 3,546.88 -389.50 1,925.16 5,940,411.65 467,235.65 0.00 1,950.74 4,700.00 60.48 100.84 3,693.95 3,596.15 -405.86 2,010.62 5,940,394.90 467,321.03 0.00 2,037.27 4,800.00 60.48 100.84 3,743.23 3,645.43 -422.23 2,096.08 5,940,378.14 467,406.41 0.00 2,123.79 4,900.00 60.48 100.84 3,792.51 3,694.71 -438.59 2,181.55 5,940,361.39 467,491.79 0.00 2,210.31 5,000.00 60.48 100.84 3,841.79 3,743.99 -454.95 2,267.01 5,940,344.63 467,577.17 0.00 2,296.83 5,100.00 60.48 100.84 3,891.06 3,793.26 -471.32 2,352.47 5,940,327.88 467,662.55 0.00 2,383.36 5,200.00 60.48 100.84 3,940.34 3,842.54 -487.68 2,437.93 5,940,311.12 467,747.92 0.00 2,469.88 5,300.00 60.48 100.84 3,989.62 3,891.82 -504.04 2,523.40 5,940,294.37 467,833.30 0.00 2,556.40 5,400.00 60.48 100.84 4,038.90 3,941.10 -520.41 2,608.86 5,940,277.61 467,918.68 0.00 2,642.92 5,500.00 60.48 100.84 4,088.17 3,990.37 -536.77 2,694.32 5,940,260.86 468,004.06 0.00 2,729.45 5,600.00 60.48 100.84 4,137.45 4,039.65 -553.13 2,779.79 5,940,244.10 468,089.44 0.00 2,815.97 5,623.03 60.48 100.84 4,148.80 4,051.00 -556.90 2,799.47 5,940,240.24 468,109.10 0.00 2,835.90 Torok 5,700.00 60.48 100.84 4,186.73 4,088.93 -569.50 2,865.25 5,940,227.35 468,174.82 0.00 2,902.49 5,800.00 60.48 100.84 4,236.01 4,138.21 -585.86 2,950.71 5,940,210.59 468,260.20 0.00 2,989.01 5,900.00 60.48 100.84 4,285.28 4,187.48 -602.22 3,036.18 5,940,193.84 468,345.57 0.00 3,075.54 6,000.00 60.48 100.84 4,334.56 4,236.76 -618.59 3,121.64 5,940,177.08 468,430.95 0.00 3,162.06 6,100.00 60.48 100.84 4,383.84 4,286.04 -634.95 3,207.10 5,940,160.33 468,516.33 0.00 3,248.58 6,200.00 60.48 100.84 4,433.12 4,335.32 -651.31 3,292.57 5,940,143.57 468,601.71 0.00 3,335.10 6,300.00 60.48 100.84 4,482.39 4,384.59 -667.67 3,378.03 5,940,126.82 468,687.09 0.00 3,421.63 6,400.00 60.48 100.84 4,531.67 4,433.87 -684.04 3,463.49 5,940,110.06 468,772.47 0.00 3,508.15 =, 6,500.00 60.48 100.84 4,580.95 4,483.15 -700.40 3,548.96 5,940,093.31 468,857.85 0.00 3,594.67 6,600.00 60.48 100.84 4,630.23 4,532.43 -716.76 3,634.42 5,940,076.55 468,943.22 0.00 3,681.19 6,700.00 60.48 100.84 4,679.50 4,581.70 -733.13 3,719.88 5,940,059.80 469,028.60 0.00 3,767.72 6,800.00 60.48 100.84 4,728.78 4,630.98 -749.49 3,805.35 5,940,043.04 469,113.98 0.00 3,854.24 6,900.00 60.48 100.84 4,778.06 4,680.26 -765.85 3,890.81 5,940,026.29 469,199.36 0.00 3,940.76 7,000.00 60.48 100.84 4,827.34 4,729.54 -782.22 3,976.27 5,940,009.53 469,284.74 0.00 4,027.28 12/12/2011 10:04:19AM Page 4 COMPASS 2003.16 Build 73 Halliburton Company HALLI B U RTO N Standard Proposal Report Database: .Sperry PROD Local Co-ordinate Reference: Well Plan Mustang 1-Slot Slot I Company: Brooks Range Petroleum Corporation TVD Reference: Planned Well @ 97.80ft(69.30'+28.5') Project: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.51 Site: Tam North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (°) (°) (ft) ft (ft) (ft) (ft) (ft) 4,778.81 7,100.00 60.48 100.84 4,876.61 4,778.81 -798.58 4,061.74 5,939,992.78 469,370.12 0.00 4,113.81 7,200.00 60.48 100.84 4,925.89 4,828.09 -814.94 4,147.20 5,939,976.02 469,455.50 0.00 4,200.33 7,224.16 60.48 100.84 4,937.80 4,840.00 -818.90 4,167.85 5,939,971.98 469,476.13 0.00 4,221.24 N.Tarn 7,300.00 60.48 100.84 4,975.17 4,877.37 -831.31 4,232.66 5,939,959.27 469,540.87 0.00 4,286.85 7,400.00 60.48 100.84 5,024.45 4,926.65 -847.67 4,318.13 5,939,942.52 469,626.25 0.00 4,373.38 7,500.00 60.48 100.84 5,073.73 4,975.93 -864.03 4,403.59 5,939,925.76 469,711.63 0.00 4,459.90 7,600.00 60.48 100.84 5,123.00 5,025.20 -880.40 4,489.05 5,939,909.01 469,797.01 0.00 4,546.42 7,700.00 60.48 100.84 5,172.28 5,074.48 -896.76 4,574.52 5,939,892.25 469,882.39 0.00 4,632.94 7,800.00 60.48 100.84 5,221.56 5,123.76 -913.12 4,659.98 5,939,875.50 469,967.77 0.00 4,719.47 7,822.81 60.48 100.84 5,232.80 5,135.00 -916.86 4,679.48 5,939,871.67 469,987.25 0.00 4,739.20 C-35 7,900.00 60.48 100.84 5,270.84 5,173.04 -929.49 4,745.44 5,939,858.74 470,053.15 0.00 4,805.99 8,000.00 60.48 100.84 5,320.11 5,222.31 -945.85 4,830.91 5,939,841.99 470,138.52 0.00 4,892.51 8,100.00 60.48 100.84 5,369.39 5,271.59 -962.21 4,916.37 5,939,825.23 470,223.90 0.00 4,979.03 8,200.00 60.48 100.84 5,418.67 5,320.87 -978.58 5,001.83 5,939,808.48 470,309.28 0.00 5,065.56 8,300.00 60.48 100.84 5,467.95 5,370.15 -994.94 5,087.30 5,939,791.72 470,394.66 0.00 5,152.08 8,400.00 60.48 100.84 5,517.22 5,419.42 -1,011.30 5,172.76 5,939,774.97 470,480.04 0.00 5,238.60 8,401.57 60.48 100.84 5,518.00 5,420.20 -1,011.56 5,174.10 5,939,774.70 470,481.38 0.00 5,239.96 Start Dir 4°/100':8401.57'MD,5518'TVD 8,425.44 60.24 99.78 5,529.80 5,432.00 -1,015.27 5,194.51 5,939,770.90 470,501.77 4.00 5,260.60 C-30 8,500.00 59.56 96.42 5,567.21 5,469.41 -1,024.36 5,258.36 5,939,761.51 470,565.57 4.00 5,324.99 8,600.00 58.77 91.85 5,618.48 5,520.68 -1,030.57 5,343.96 5,939,754.92 470,651.13 4.00 5,410.81 8,700.00 58.16 87.21 5,670.80 5,573.00 -1,029.88 5,429.16 5,939,755.21 470,736.32 4.00 5,495.66 8,800.00 57.71 82.52 5,723.91 5,626.11 -1,022.31 5,513.52 5,939,762.39 470,820.72 4.00 5,579.11 8,900.00 57.44 77.79 5,777.55 5,679.75 -1,007.89 5,596.66 5,939,776.42 470,903.91 4.00 5,660.77 9,000.00 57.35 73.05 5,831.46 5,733.66 -986.70 5,678.15 5,939,797.24 470,985.48 4.00 5,740.23 9,052.53 57.37 70.55 5,859.80 5,762.00 -972.89 5,720.16 5,939,810.86 471,027.56 4.00 5,780.96 Top HRZ 9,100.00 57.43 68.30 5,885.38 5,787.58 -958.83 5,757.60 5,939,824.74 471,065.05 4.00 5,817.11 9,200.00 57.69 63.57 5,939.04 5,841.24 -924.43 5,834.62 5,939,858.79 471,142.23 4.00 5,891.03 9,300.00 58.13 58.88 5,992.18 5,894.38 -883.65 5,908.84 5,939,899.22 471,216.63 4.00 5,961.63 9,314.45 58.21 58.20 5,999.80 5,902.00 -877.24 5,919.31 5,939,905.58 471,227.13 4.00 5,971.53 Top Kalubik 9,400.00 58.74 54.24 6,044.55 5,946.75 -836.70 5,979.90 5,939,945.84 471,287.90 4.00 6,028.57 9,437.24 59.01 52.52 6,063.80 5,966.00 -817.68 6,005.49 5,939,964.73 471,313.57 4.00 6,052.50 K-1 Gamma Marker 9,484.10 59.38 50.38 6,087.80 5,990.00 -792.61 6,036.96 5,939,989.66 471,345.15 4.00 6,081.79 7" 9,500.00 59.51 49.66 6,095.88 5,998.08 -783.81 6,047.45 5,939,998.41 471,355.68 4.00 6,091.52 9,600.00 60.44 45.17 6,145.94 6,048.14 -725.23 6,111.17 5,940,056.69 471,419.66 4.00 6,150.18 9,603.78 60.48 45.00 6,147.80 6,050.00 .91 6,113.50 , 0Q 471,422.00 4.00 6,152.31 End Dir :9603.78'MD,6147.8'TVD-Top Kup C- ustang 1 Top Kup C Target reel 12/12/2011 10:04:19AM Page 5 COMPASS 2003.16 Build 73 Halliburton Company HA LL I B U RTO N Standard Proposal Report Database: .Sperry PROD Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Company: Brooks Range Petroleum Corporation TVD Reference: Planned Well @ 97.80ft(69.30'+28.5') Project: Tam MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site: Tam North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (°) (°) (ft) ft (ft) (ft) (ft) (ft) 6,070.00 9,644.37 60.48 45.00 6,167.80 6,070.00 -697.93 6,138.47 5,940,083.86 471,447.09 0.00 6,175.14 LCU/Base Kup C 9,700.00 60.48 45.00 6,195.21 6,097.41 -663.70 6,172.70 5,940,117.93 471,481.47 0.00 6,206.42 9,800.00 60.48 45.00 6,244.48 6,146.68 -602.17 6,234.23 5,940,179.17 471,543.28 0.00 6,262.66 9,816.88 60.48 45.00 6,252.80 6,155.00 -591.79 6,244.62 5,940,189.51 471,553.71 0.00 6,272.16 Miluveach 9,900.00 60.48 45.00 6,293.76 6,195.96 -540.64 6,295.76 5,940,240.41 471,605.09 0.00 6,318.91 9,928.49 60.48 45.00 6,307.79 6,209.99 -523.11 6,313.29 5,940,257.86 471,622.70 0.00 6,334.93 Total Depth:9928.5'MD,6307.8'TVD _, 9,928.50 60.48 45.00 6,307.80 _ 6,210.00 -523.10 . 6,313.30 _ 5,940,257.86 471,622.70 0.00 6,334.94 Targets Target Name - Dip Angle Dip Dir. ND +N/-S +E/-W Northing Easting -Shape (0) (°) (ft) (ft) (ft) (ft) (ft) Mustang 1A Hardline 0.00 0.00 6,157.80 -542.29 4,852.53 5,940,245.40 470,162.00 -Polygon Point 1 6,157.80 -542.29 4,852.53 5,940,245.40 470,162.00 Point 2 6,157.80 -993.52 6,288.17 5,939,787.61 471,595.41 Point 3 6,157.80 4,840.27 6,278.07 5,945,620.81 471,612.16 Point 4 6,157.80 -993.52 6,288.17 5,939,787.61 471,595.41 Mustang 1 Top Kup C Target revl 0.00 0.00 6,147.80 -722.91 6,113.50 5,940,059.00 471,422.00 -Circle(radius 150.00) Mustang 1A Lease Line 0.00 0.00 6,157.80 4,968.14 6,944.19 5,945,745.60 472,278.80 -Polygon Point 1 6,157.80 4,968.14 6,944.19 5,945,745.60 472,278.80 Point 2 6,157.80 -1,474.14 6,948.69 5,939,304.00 472,253.65 Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (") (•) 2,494.49 2,447.80 9 5/8" 9-5/8 12-1/4 9,484.10 6,087.80 7" 7 8-1/2 12/12/2011 10:04:19AM Page 6 COMPASS 2003.16 Build 73 Halliburton Company HALL I B U RTO N Standard Proposal Report Database: .Spent'PROD Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Company: Brooks Range Petroleum Corporation ND Reference: Planned Well @ 97.80ft(69.30'+28.5') Project: Tam MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site: Tam North Reference: True Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Wellbore: Mustang 1 Pilot Hole Design: Mustang 1 Pilot Hole WP05 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (ft) (ft) ft Name Lithology (°) (0) 9,437.24 6,063.80 K-1 Gamma Marker 9,052.53 5,859.80 Top HRZ 5,623.03 4,148.80 Torok 7,224.16 4,937.80 N.Tarn 9,603.78 6,147.80 Top Kup C 1,307.80 1,307.80 SV1 9,644.37 6,167.80 LCU/Base Kup C 1,397.80 1,397.80 Base Perm 8,425.44 5,529.80 C-30 2,636.71 2,567.80 K-10 305.80 305.80 SV3 9,816.88 6,252.80 Miluveach 9,314.45 5,999.80 Top Kalubik 7,822.81 5,232.80 C-35 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +E/-W (ft) (ft) (ft) (ft) Comment 1,400.00 1,400.00 0.00 0.00 Start Dir 1°/100':1400'MD, 1400'TVD 1,650.00 1,649.68 -2.52 10.61 Start Dir 3°/100':1650'MD, 1649.68'TVD 2,494.49 2,447.80 -61.17 257.96 End Dir :2494.49'MD,2447.8'TVD 2,514.49 2,465.06 -63.50 267.79 Start Dir 4°/100':2514.49'MD,2465.06'TVD 3,269.24 2,988.91 -171.74 787.84 End Dir :3269.24'MD,2988.91'TVD 8,401.57 5,518.00 -1,011.56 5,174.10 Start Dir 4°/100':8401.57'MD,5518'TVD 9,603.78 6,147.80 -722.91 6,113.49 End Dir :9603.78'MD,6147.8'TVD 9,928.49 6,307.79 -523.11 6,313.29 Total Depth:9928.5'MD,6307.8'TVD 12/12/2011 10:04:19AM Page 7 COMPASS 2003.16 Build 73 Brooks Range Petroleum Corporation Tarn Tarn Plan Mustang 1 Mustang 1 Pilot Hole Mustang 1 Pilot Hole WP05 Anticollision Summary Report 12 December, 2011 C i00 O O) a O- O > U tp E i \\ o rn .) m Z ,E r U Ic j o aDi / a n 6. EU 1n J o) >N'._m O \ o Y 0 U�2 M 7 0 F E 0ind - r iz cU m_3 c _ Y f HWK 0 W g B E.g 8 .�1p. m L_L(OL m 0w 2w2c,j2 ---E- _1 CbC�O) U wiowv3i C E y �)oon��mrnnrn ❑ j w N ‘IhNiO j Halliburton Company 0 Anticollision Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Planned Well @ 97.80ft(69.30'+28.5') Reference Site: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site Error: 0.00ft North Reference: True Reference Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Well Error: 0.00ft Output errors are at 1.00 sigma Reference Wellbore Mustang 1 Pilot Hole Database: .Sperry PROD Reference Design: Mustang 1 Pilot Hole WP05 Offset TVD Reference: Offset Datum Reference Mustang 1 Pilot Hole WP05 Filter type: GLOBAL FILTER APPLIED:All wellpaths within 200'+100/1000 of refer€ Interpolation Method: MD Interval 25.00ft Error Model: ISCWSA Depth Range: Unlimited Scan Method: Tray.Cylinder North Results Limited by: Maximum center-center distance of 1,190.00ft Error Surface: Elliptical Conic Survey Tool Program Date 12/12/2011 From To (ft) (ft) Survey(Wellbore) Tool Name Description 28.50 250.00 Mustang 1 Pilot Hole WP05(Mustang 1 Pi INC+TREND Inclinometer+known azi trend 250.00 2,494.49 Mustang 1 Pilot Hole WP05(Mustang 1 Pi MWD+IFR+MS MWD+IFR+Multi Station 2,494.49 9,484.10 Mustang 1 Pilot Hole WP05(Mustang 1 Pi MWD+IFR+MS MWD+IFR+Multi Station 9,484.10 9,928.50 Mustang 1 Pilot Hole WP05(Mustang 1 Pi MWD+IFR+MS MWD+IFR+Multi Station Summary Reference Offset Centre to No-Go Allowable Measured Measured Centre Distance Deviation Warning Site Name Depth Depth Distance (ft) from Plan Offset Well-Wellbore-Design (ft) (ft) (ft) (ft) Tarn Plan Mustang 1 -Plan Mustang 1A-Plan Mustan 9,624.99 9,625.00 0.57 2.00 -1.42 FAIL-Major Risk North Tarn 1A-North Tarn 1A-North Tarn 1A 349.98 350.00 122.45 11.32 111.14 Pass-Major Risk North Tarn 1A-North Tarn 1A.-North Tarn 1A W 299.99 ( 0D 2 841 10.02 111.82 Pass-Major Risk Plan Mustang 2-Mustang 2 Pilot Hole-Mustang 1,628.74 1,625.00 60.86 32.67 28.24 Pass-Major Risk Plan Mustang 2-Mustang 2A-Mustang 2A WP02 1,628.74 1,625.00 60.86 32.67 28.24 Pass-Major Risk 12/12/2011 10.20:37AM Page 2 of 3 COMPASS 2003.16 Build 73 Halliburton Company Anticollision Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Plan Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Planned Well @ 97.80ft(69.30'+28.5') Reference Site: Tarn MD Reference: Planned Well @ 97.80ft(69.30'+28.5') Site Error: 0.00ft North Reference: True Reference Well: Plan Mustang 1 Survey Calculation Method: Minimum Curvature Well Error: 0.00ft Output errors are at 1.00 sigma Reference Wellbore Mustang 1 Pilot Hole Database: .Sperry PROD Reference Design: Mustang 1 Pilot Hole WP05 Offset TVD Reference: Offset Datum Reference Depths are relative to Planned Well @ 97.80ft Coordinates are relative to: Plan Mustang 1 -Slot Slot I Offset Depths are relative to Offset Datum Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04 Central Meridian is-150.000000° Grid Convergence at Surface is:-0.26° Ladder Plot I I 1200 I I I I I I I I I 1 I I I I J I I fk 1 I I I C I y l I 900 ' O I I I O I I I I I �R C I 1 I I I I I co it I I f4 I I I I I I I I U) 600 a) I I I I 1 •'y fIk1 I I I I C I I I I I I I I O I fit I a) I ii I I I I C I I I I I a) 300 . if CJ srfr I I I es. AA *iIrA 0 30; 2000 4000 6000 8000 10000 12000 Measured Depth(2000 ft/in) LEGEND i Ig A, Plan Mustang 1AWP05VO -. North Tam 1A,North Tam 1A.,North Tam 1AWP01V0 f Plan Mustang 2,Mustang 2A,Must ,North Tam 1AVO -}4- Plan Mustang 2,Mus-tang 2 Pilot Hole,Mustang 2 Pilot Hole W PO2 VO -$- Mustang 1 Pilot Hole We 06 12/12/2011 10:20:36AM Page 3 of 3 COMPASS 2003.16 Build 73 Mg SWACO A Schlumberger Company .//111111"/\°#\‘` Brooks Range Petroleum Mustang #1 Mud Program Name Signature Date Originator: Peter Nelson December 8,2011 Reviewed by: Raymond Figueroa Customer Approval: Version: 1.0 December 8, 2011 CONFIDENTIAL 1 MI SWAC�Q�� A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Distribution Company/ Name Role Brooks Range Petroleum Bart Armfield BRPC COO Lawrence Vendl BRPC VP, Exploration Tom Habermann BRPC Controller Larry Smith BRPC Chief Geophysicist Mark Wiggin BRPC Engineering&Development Manager MI Swaco Raymond Figueroa Alaska Engineering Manager Jim Cucullu Regional Technical Service Manager Nabors 7ES mud engineers Field mud engineers Maintaining proper document control is critical with regard to the development of appropriate well design. No changes will be made without being supported by the appropriate documentation and described below in table. Version Date Description 1.0 12/08/2011 Draft for use in permitting process,circulation, and comment December 8, 2011 CONFIDENTIAL 2 A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Well Summary The Mustang#1 exploration well is located onshore north of Tarn Field and southwest of the Kuparuk. The ice road will be 5 miles long north of the Alpine pipeline from the Kuparuk 2M pad. The 20"x 34" conductor is planned to be set at 80' MD/TVD. The surface interval will be drilled with the standard MI Gel/Gelex spud mud. It is planned to be a 12-1/4" hole drilled to a depth of 2,494' MD/2,448'TVD at which point 9-5/8", 40#, L-80, BTC surface casing will be run and cemented. The intermediate interval will be drilled with a VersaPro OBM system and is planned to be an 8-1/2" hole drilled to TD of 9,552' MD/6,088'TVD. The 6-1/8" production hole will be drilled using a KLA-SHIELD inhibited water-based system to a final TD of 10.0, MD/6,307'TVD. The formation will be evaluated using open-hole LWD and plugged back based on'ff,e findings. Fluid and Drilling Concerns As with all exploration wells, some geologic uncertainty exists. Communicate with the rig team to determine what the actual needs of the well are. Remember the main purpose of the well is to gather information in a safe and environmentally sound manner. All decisions made concerning the integrity of the well should bear this in mind. Historically, wells drilled in the Tarn area have encountered fluids-related difficulties related to hole r cleaning and lost circulation. Poor hole cleaning due to drilling parameters appear to have contributed to high ECD's, tight hole conditions, and hole pack-offs. It will be imperative to keep the plastic viscosity as low as possible while maintaining yield point and low-end rheology as high as practical. This will optimize hole cleaning while minimizing pump pressures and ECD's. Lost circulation has been attributed to fractured formation, particularly at the base of the Kuparuk C formation. Bridging material will be added to the active system before drilling into the potential loss zone. Because of the history of lost circulation in the area, the contingency will be made to have extra fluid volume on hand prior to drilling ahead. Additional lost circulation material will be on location in order to build and spot LCM pills as needed following the"Lost Circulation Flowchart"on page 8. Fluid related matters: • Preserve wellbore stability throughout the drilling phase of the operations • Ensure adequate hole cleaning • Maintain good hole condition — to allow for easy tripping, running of casing, and logging • Control of ECD's • Manage lost circulation • Monitor volumes for well control purposes • Minimize torque and drag • Condition the mud to allow for successful cementing operations • Minimize and manage the cost of waste disposal for the "drill cuttings" and associated fluids. Monitor and efficiently utilize the trucks and gravel washer as required for this operation. December 8, 2011 CONFIDENTIAL 3 Mg SWACO /‘,/\•\ Brooks Range Petroleum Company Brooks Range Petroleum Mustang #1 Project Summary Casing Hole TVD Mud Size Size MD ss Density Range (in) (in) Profile (ft) (ft) (ppg) 9.0—9 5 9 5/8" 12 1/4" 2,494' 2,448' Casing Spud Mud 98— 10.0 7" 8 1/2" 9,5526,088' VersaPro Casing OBM /7 /0) 11 74 6 1/8" 10,001' 6,307' 107 - 11.7 KLA-SHIELD December 8, 2011 CONFIDENTIAL 4 Mi S'Wi4 � A Schlumberger Company ___-- Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval Drilling Fluid System Spud Mud Key Products MI Gel, GELEX, Caustic, MI WATE(Barite), PolyPac UL, DRILZONE, SCREENKLEEN, Solids Control Shakers, Mud Cleaner, Centrifuge Large gravel sizes can cause hole-cleaning problems. Sticky clays in the permafrost can slow ROP from bit and BHA balling. Potential Problems Swabbing in the clays may also be a problem. Hydrates may be encountered. To help ensure good cement to surface after running the casing, and if practical, condition mud to a funnel viscosity of— 55-100 sec/qt prior to cementing the casing. INTERVAL MUD PROPERTIES Final Value Mud Property Initial Value @ TD Density(ppg) 9.0 9.4 - 9.5 Yield Point(cP) 50 - 70 45 - 60 PV(Ib/100 sf) 20 -45 20 - 30 pH 9.0 .9.5 9.0 - 9.5 API Filtrate(cc) NC - 8 <8 Solids (%) ± 9% ± 9% Recommended Initial Spud Mud Formulation Soda Ash 0.2 ppb MI Gel 25 ppb (Add to the make-up water and allow to hydrate as long as is possible) GELEX Add prior to spud to increase the funnel viscosity to 250-300 sec/quart. MI WATE(Barite) Add for density as needed Caustic Soda 0.02 ppb PolyPac UL 0.25 ppb Recommended Sweep Formulation Add DRILZONE in 0.25% increments to minimize clay to metal sticking. Only use this procedure if deemed absolutely necessary. DRILZONE will be utilized for bit balling and ScreenKleen for screen blinding from clays with an initial concentration of 0.25%v/v. Higher concentrations can be added if required, but results need to be carefully monitored and reported. December 8, 2011 CONFIDENTIAL 5 Mi SWA C ..-.--d' A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval Treatment Procedures • Gravel can cause hole-cleaning problems. If larger than normal gravel is encountered, be prepared to increase funnel viscosity from 250—350 sec/qt. Have GELEX available for an immediate response to this issue. • Mix the surface interval "Spud Mud" using the coldest water possible. Due to expected flow rates (and the associated temperature increase resulting from the flow rate), the temperature of all water added to the system should also be maintained at as low a temperature as possible. • Avoid washing out the shoe of the conductor pipe by drilling to 150' using a reduced flow rate (500-600 gpm)and then maintain flow rates as per the"Virtual Hydraulics Hole Cleaning Model"and stay below an effective 100 ft/hr ROP to ensure hole cleaning. Reduce pump rates immediately if packing off occurs. • Drill ahead. Adjust rheology, ROP, pipe rotation speed (60 - 80 rpm minimum), pipe running speeds and pump rates as needed to balance hole cleaning and ECD. • Drill ahead watching for wellbore instability problems. Any fluid weight adjustments should be performed in 0.1 -0.2 lb/gal increments if absolutely necessary. • Sticky clays in the permafrost and also in the zone below the permafrost can slow ROP from bit and BHA balling. Add DRILZONE (in 0.25% increments)and Pecan Nut Plug (as allowed by MWD tools)to minimize clay to metal sticking only if needed. • Once the permafrost has been drilled, additions of small amounts of Mix II to lower fluid loss may be required. • Once the permafrost has been drilled, begin to increase the proportion of polymer additions, while reducing the quantities of MI Gel that are used to maintain the rheology of the fluid. • Gas hydrates may be encountered. Determine the severity of any influx and weight up as needed to maintain proper well control. See "Hydrate Issues" enclosure. • Add up to 1.5% ScreenKleen to active system 200 feet prior to the base of the permafrost at approximately 1,600' to pre-treat the fluid for the possibility of gas hydrates or shallow gas. • To help ensure good cement to surface after running the casing, and if practical for existing hole conditions, condition the mud to a funnel viscosity of+/- 55— 100 sec/qt(YP at 15— 17) prior to cementing the casing. Have water on hand to ensure the desired rheology can be achieved. December 8, 2011 CONFIDENTIAL 6 Mi SWAB,,. A Schbmberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval Drilling Concerns • The lithology of this zone is a composite of pebble conglomerate and sand in the upper intervals with intermittent clay matrix. Carbonaceous material and coal may be noted. Based upon work done on previous exploration wells, a gel based spud mud is recommended for the surface interval. Initial viscosities of 150 — 175 sec/qt should be maintained through the permafrost. A 9-5/8" surface casing will be set and the cement will be pumped in a single stage to surface. • Gravel sizes can cause hole-cleaning problems. If larger than normal gravel is encountered, be prepared to increase funnel viscosity to 175-200 sec/qt. • Sticky clays in the permafrost and in the zone below the permafrost can slow the ROP from bit and BHA balling. If needed, add DRILZONE (at 0.5— 1.5%)and Pecan Nut Plug M (as allowed by MWD tools)to help clean and clear the balled bit. • Use as much cold water as possible for the initial make-up and for additions made to the mud system during the surface drilling operations to help prevent permafrost thawing.Try to keep flow-line temperatures of 60°F or less while drilling this interval. • Maintain low flow rates for the initial 200'of drilling to reduce the chance of washing out the conductor shoe. • Swabbing in the clays may also be a problem. Maintain or slightly increase mud weight (0.1 ppg) and continue additions of surfactant at 15 to 30 gallons per hour and wiper runs through the surface interval may be necessary to clear the wellbore of the problem clays. DRILZONE or SCREENKLEEN maintained at 0.5— 1.5% is also recommended to help with clay related issues. • To help insure good cement to surface after running the casing, condition mud to a YP of at least 25 - 30 prior to cementing the casing. Do not lower the YP beyond 25 to avoid trouble with sands that may be found on this well. Use water sparingly and ensure proper solids control equipment utilization is being observed to reduce the overall haul-off costs for this well. • Although a low potential risk, hydrates may be encountered (particularly at depths below the permafrost). Observe good drilling practices to determine severity of any influx and weight up as needed to maintain proper well control. See Hydrate Issues"enclosure for further information. December 8, 2011 CONFIDENTIAL 7 Mi SW"C ,,r,- i\,V \ A Scnlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval Operations Recommendations Spud mud will be mixed on the rig or at M-I Swaco's Prudhoe Bay mud plant once the rig is spotted over the well. Use as much cold water as possible for the initial make-up and for additions made to the mud system during the surface drilling operations. • Drill ahead maintaining volume as needed. • Maximum fluid weight is planned to be 9.0 — 9.5 ppg for this interval. • Run all solids control equipment. Run 84 - 110 mesh shaker screens to maintain a moist discharge for enhanced solids removal. Add drill water below shaker to avoid washing unwanted solids back into the active system. Watch for "excessively wet"cuttings and change screens to a larger mesh should this occur. Minimization of"excessively wet" cuttings sent to Grind and Inject for disposal is a major cost reduction factor. • Lower API fluid loss with Poly Pac Supreme UL as needed to maintain hole stability. • To control rheology additions of CF DESCO II may be needed. • Add DRILZONE or SCREENKLEEN (at 0.5— 1.5%)and PECAN NUT PLUG (at 15 ppb)to reduce bit balling in the clay sections if needed. DRILZONE at 0.5- 1.5% may also be used to help with any clay issues. • If hole conditions allow, let the YP drop to 25 — 30 (no lower than 25) prior to cementing of the casing. Allow surface mud volumes to fall during the later stage of this interval to minimize waste fluid disposal costs. • Run and set the casing as per program. Treat the chase fluid and drill out mud for the upcoming cement drill out. • Upon drill-out of the surface casing shoe, treat any cement returns with SAPP, sodium bicarbonate, and citric acid as needed. December 8, 2011 CONFIDENTIAL 8 Mi SWAG A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval S.C.E Operation Standards: Shakers— • Inspect shakers, including the decking rubbers,and repair as necessary. • Install XR Magnum screens(84- 110 mesh). Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 90% (7.8 G's)for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. • Ensure jacking system on the shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. Desilter- • Ensure cuttings trough bypasses shakers, and goes into cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers(84-110 mesh screens). • Install 3/8"apexes. • Ensure that"feet of head"gauge is available at the desilter, not the pump. • Ensure that desilter feed pump can achieve 95'of head. CRITICAL! • Monitor discard, change apexes as necessary to improve solids content in mud. Proper apex size on the desilter during the surface section will greatly improve the performance of the centrifuge and overall solids control performance of the pit system. Drilling conditions may dictate several apex adjustments and close supervision of the mud cleaned will be highly rewarded. • Discard should be 2-3 ppg over feed weight. Centrifuge — • Surface interval requires a greater through-put during most operations,which requires the centrifuge to run at a lower speed (2,500 - 1,800 rpm)with a higher differential. This setting allows the centrifuge to process more fluid and discharge more cuttings.With the lower rpm's, the cut point is reduced from 3-6 microns to an approximate 6- 10 micron cut which gives up more fines, but processes more fluid. Swaco recommends running the centrifuge at the lower speeds during the upper sections of hole. • Refer to mud man for solids information to determine speed and feed rate of centrifuge. December 8, 2011 CONFIDENTIAL 9 M� SWA�� i WV\ A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Intermediate Interval Drilling Fluid System VersaPro Key Products LVT-200, IMG 400,Lime,VERSACOAT HF,VERSAWET,VERSAMOD, VERSAHRP, Brine (10.6 ppg CaCl2), MI WATE (Barite) Solids Control Shakers, Mud cleaner, Centrifuge Lithologic instability near the wellbore. Potential Problems Lost Circulation Hole cleaning. Intermediate Interval Fluid Properties Properties Initial Value Density(ppg) 9.8 ppg - Initial Make-Up Weight 10.7 ppg - Possible by TD Funnel Viscosity(seconds) 35 -45 Yield Point(cP) 15 -28 Plastic Viscosity(lb/100 sf) 15 -25 Oil :Water 70 : 30 Electrical Stability(miVolts) 650 -900 HTHP Fluid Loss(m1/30 min/200 psi/150°F) <4 VersaPro Formula Mineral Oil-LVT 200(.825 SpG) 0.602 bbl IMG 400 6.0 ppb Lime 6.0 ppb VERSACOAT HF 5.0 ppb VERSAWET 2.12 ppb MI WATE 100 ppb Brine(10.6 ppg CaCl2) 0.165 bbl VERSA MOD 0.5 ppb VERSA HRP 0.5 ppb December 8, 2011 CONFIDENTIAL 10 Mi SW /\,,,^\ A Scmumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Intermediate Interval Operations • This interval will be drilled using an 8-1/2" bit to an expected interval TD of 9,552' MD/6,087' TVD. Care should be taken to monitor all drilling criteria to ensure that best drilling practices are being observed. • Maintain low gravity drilled solids to below 6%with solids control equipment and dilution. Use the MI Solids Van to supplement rig equipment, if needed. • Use Virtual Hydraulics ECD predictions vs. PWD actual values to appraise hole cleaning and hole conditions. If possible do not allow actual ECD's to exceed 0.5 ppg over predicted "clean hole" ECD. • Monitor fluids levels closely while drilling for losses or gains. • Drill to interval TD. At TD, pump a 30-40 bbl high viscosity weighted sweep. Add LCM to the sweep if experiencing losses. Circulate the wellbore clean (3—4 bottoms up may be needed) in preparation for logging and testing. • Log and/or test well per program. • Run and cement 7" casing per program. • The VersaPro OBM will be returned to M-I SWACO's Prudhoe Bay Mud Plant to be reconditioned for reuse on Mustang #2. Intermediate Interval Concerns • Past experience has indicated that for every one barrel of hole made there is 1.5 bbls lost with the cuttings through the solids control equipment. Be sure to have the base oil storage tank full on the rig with LVT-200 mineral oil. • While drilling adjust rheology, ROP, pipe rotation speed, pipe running speeds and pump rates as needed to balance hole cleaning and ECD. Avoid spikes in ECDs by slowly ramping up pumps when beginning to circulate. • Utilize low viscosity, weighted sweeps using SAFE-GARB 250 and tandem sweeps (low vis/weighted) if needed for sweeping the hole clean. • Drill ahead watching for well bore instability problems. Any fluid weight adjustments should be performed in 0.1-0.2 lb/gal increments. • Run the centrifuge to remove drill solids and maintain a PV<25 and the yield point as specified. December 8, 2011 CONFIDENTIAL 11 Me SWACO /\y\, A$cnlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Intermediate Interval S.C.E Operation Standards: Shakers - • Inspect shakers, including the decking rubbers, and repair as necessary. • Install XR Magnum screens(175-210 mesh). Ensure screens are properly tensioned, per M-I SWACO best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 90% (7.8 G's)for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. Screens of 210 mesh are optimum to reduce sand-sized particles. • Ensure jacking system on the shakers enables the fluid to flow to the center of the screens, adjust and lock as necessary. Desilter- • Ensure cuttings trough bypasses shakers and goes into the cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers. • Install 3/8" apexes. • Ensure that"feet of head" gauge is available at the Desilter, not the pump. • Ensure that desilter feed pump can achieve 95' of head. CRITICAL! • Monitor discard, change apexes as necessary to improve solids content in mud (it may be determined that 3/8" apexes can be installed if cuttings in the system happen to be finer than presumed. • Discard should be 2-3 ppg over feed weight. Centrifuge - • Refer to mud man for solids information to determine speed and feed rate of centrifuge. • Continual processing at low feed rates will yield better results than shutting centrifuge down and starting it up. Slow the feed rate down to maintain an acceptable weight if needed. December 8, 2011 CONFIDENTIAL 12 Mi SWAG i\,VV1 A Sc Mumberger Comperry Brooks Range Petroleum Company Brooks Range Petroleum Mustang #1 Production Interval Drilling Fluid System KLA-SHIELD Water Base Mud Key Products KLA-STOP, Flowzan, Polypac UL, LoTorq, Resinex, Asphasol Supreme, Potassium Chloride (KCI), Sodium Chloride, SafeCarb, Solids Control Shakers, Mud cleaner, Centrifuge Lithologic instability near the wellbore. Potential Problems Lost Circulation Hole cleaning. Production Interval Drill-in Fluid Properties Properties Initial Value Density(ppg) 10.7 ppg Funnel Viscosity(seconds) 45 -55 Yield Point(cP) 15 -20 Plastic Viscosity(lb/100 sf) 15 -25 LGS% < 6 Fluid Loss < 5 KLA-SHIELD MUD FORMULATION Product Conc/Bbl Function PolyPac UL 1.0 ppb API FL Flowzan .75— 1.75 ppb Rheology KLA-STOP 12 ppb Shale/Clay Inhibition Defoam X .25 ppb Foaming of brine M-I WATE As needed Barite/weight materials M-I Gel (Pre-hydrated) 5 ppb API FL (If needed) Potassium Chloride 21.8 ppb Shale Inhibition/Density Sodium Chloride 65.5 ppb Shale Inhibition/Density December 8, 2011 CONFIDENTIAL 13 A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Production Interval Considerations • Prior to drilling ahead, MI Swaco recommends adding 15 to 30 Ib/bbl of a SafeCarb blend to the active system to act as bridging material to help mitigate losses. SafeCarb size selection is to be based on the nature of the losses and the formation being drilled. • Ensure that the fluid properties are maintained to provide the best possible hole cleaning. Maintain mud weights as per drilling program guide lines and ensure that rheology is optimized to reduce ECD's to a manageable level while drilling. Monitor the well and pit volumes closely for any fluid losses and flow back. • Drill ahead using PAC materials to control fluid losses. It is very important in this interval to maintain a low fluid loss. Flowzan may also be used to adjust rheologies upward. Desco CF should be used to adjust and fine-tune the rheology. "Black Products", Asphasol Supreme and Resinex, will be on location and will be used as needed to control fluid loss and for wall cake quality. • Add lubricants (LoTorq) "only as needed", but do not exceed 3% total without confirmation/pilot testing. • Monitor and record drilling parameters on each connection and before and after any lubricant additions. • Control the ROP and flow rates as needed to avoid inducing a breakdown of any formations. Reduce pump rates immediately if packing off occurs. Pump high viscosity weighted sweeps and ream carefully to clean the hole before proceeding with further drilling. • Adjust rheology, pipe rotation speed, pipe running speeds and pump rates as needed to balance hole cleaning and ECD. Use good drilling and tripping practices. Break circulation slowly and reduce pump speed 15 to 20% while reaming down. • Drill ahead watching for well bore instability/tight hole problems.Any fluid weight adjustments should be performed in 0.1- 0.2 ppg increments. • As an exploration well, pore pressure uncertainty also exists. Use all means possible to evaluate well conditions to determine if fluid properties are in line with the needs of the well. • Upon reaching TD, watch the bottoms-up cuttings closely. If the well does not readily cleanup or if there are any excess of torque, drag, pick-up or slack-off weights pump a high viscosity/ weighted sweep and observe bottoms up again. • Establish good hole conditions for any logging and testing that may be performed. • Fluid deliveries, fluid transfers, and cuttings disposal issues will be tracked on a daily basis. ecember 8, 2011 CONFIDENTIAL 14 MiSWA A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Production Interval S.C.E.Operation Standards: Shakers- • Inspect decking rubbers,do as necessary. • Install XR Magnum screens(175-210 mesh). Ensure screens are properly tensioned, per M-I Swaco's best practice suggestions. Spray down new screens with fresh water before operating the shakers. • Set counterweights to 90% (7.8 G's)for optimum performance. • As fluid shears, screen up as necessary to higher mesh screen sizes. 210 mesh is optimum to reduce sand sized particles. • Ensure jacking system on shakers enables the fluid to flow to the center of the screens. Desilter- • Ensure cuttings trough bypasses shakers, and goes into cuttings ditch. Failure to do so will allow small particles to enter right back into system through the flow line shakers(84-1 10 mesh screens). • Install 3/8"apexes • Ensure that"feet of head"gauge is available at the desilter, not the pump. • Ensure that desilter feed pump can achieve 95'of head. • Monitor discard, change apexes as necessary to improve solids content in mud (it may be determined that 3/8"apexes can be installed if cuttings in the system happen to be finer than presumed). Centrifuge- • Production intervals generally call for a"high-speed"centrifuge,which is rotating at approximately 3,200 rpm's.This allows the centrifuge to make the 3-6 micron cut, and eliminate a percentage of the"ultra fine"cuttings from the fluid. Through put must be decreased while running the centrifuge at 3200 rpm's, since there is a greater risk of"packing off"the centrifuge back drive and auger. • Swaco would also suggest installation of amp meter on the back drive motor which will allow the operators to monitor the feed rates by knowing how much torque the back drive motor is receiving while trying to discharge the cuttings. • Refer to mud engineer for solids information to determine speed and feed rate of centrifuge. December 8, 2011 CONFIDENTIAL 15 Mi SWAC ,. A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Surface Interval Hydrate Issues • Use the following guidelines to help minimize the effect that any hydrates which may have to the drilling operation. • Weigh the mud at both the possum belly and at the suction pit using pressurized and regular mud balances to determine the amount of gas that has become entrained in the mud. • Maintain the fluid at below 60°F if possible. • Minimize circulation time to reduce hydrate thawing. • Watch both drill rates and flow rates and make adjustments as needed to help diminish any problems that the surface equipment may have in handling the fluid and cuttings while circulating out any hydrates. • Weight up prior to drilling out of the permafrost.Watch the rate of depletion of the hydrates and increase the weight as needed to control the gas breakout from the hydrates. • Add up to 1.5% ScreenKleen to active system 200 feet prior to the base of the permafrost at approximately 1,600'to pre-treat the fluid for the possibility of gas hydrates or shallow gas. • Defoam X may also be used to help release entrained hydrate gas out the fluid. Barite Sag Concerns Barite Sag (a reduction in the MW due to the dynamic and static settling of barite) is a potential drilling hazard while using weighted fluids. Although this well is designed for a mud weights below--11.0 ppg, unexpected conditions may make additional weight ups or lubricant additions necessary. Both of these changes may contribute to an increased chance of barite sag issues. Barite Sag is also aggravated by circulating at low rates for extended periods of time or while tripping with drill pipe or casing. As a consequence, if it becomes necessary to circulate at reduced rates, it is recommended that the pit watcher weigh and record MW out using a pressurized and un-pressurized balance every 15 minutes. Trips and casing running should also be closely monitored for indications of barite sag. December 8, 2011 CONFIDENTIAL 16 Mi9-- A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Lost Circulation Recommendations for WBM - Surface Interval No LCM Restrictions Losing fluid while drilling Measure rate of loss 1 1 Seepage losses Partial losses Severe losses 5 -20 bbl/hr 20-60 bbl/hr 60—200 bbl/hr or Total loss of returns 1 1 If fault related drill across fault If fault related drill across fault If fault related drill across fault 1-1.5 times the length of the 1-1.5 times the length of the 1-1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses 4, 1 Spot 45 ppb pill*: Squeeze high-fluid-loss 1 pill*' Contact Drilling/Asset G-SEAL Plus 10 ppb Form-a-Block M-I-X II M 15 ppb 35 ppb Engineer for approval SAFE CARB 40 10 ppb (See Recommended Form- No success succe NUTPLUG F 5 ppb Nom A-Block Procedure) Pump thru Well Pump thru BHA Commander or BHA Spot 80 ppb pill Circ sub required G-SEAL 15 ppb M-I-X 11-C 20 ppb M-1 SEAL M 10 ppb SAFECARB 250 15 ppb NUTPLUG F 10 ppb 1 Squeeze high-fluid-loss pill*: From-a-Block 35 ppb Spot plug: (See Recommended Form-A- Gunk Squeeze or f block Procedure) FORM-A-SET AK Pump thru Well Commander or BHA *Indicates that the particle sizing of these products are smaller than Nut Plug Medium December 8,2011 CONFIDENTIAL 17 Mi A Schbmberper Compnry Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 MOBM Lost Circulation Flowchart for Non-Productive Interval Losing fluid while drilling Measure rate of loss 1 1 1 1 Seepage losses<20 bbl/hr static Partial losses 20-60 bbl/hr static Severe losses 60—200 bbl/hr or Total loss of returns 1 1 1 If fault related drill across fault If fault related drill across fault If fault related drill across fault 1-1.5 times the length of the 1-1.5 times the length of the 1-1.5 times the length of the throw before treating losses throw before treating losses throw before treating losses 1 1 1 Spot 25 ppb pill: Spot 50 ppb pill: Squeeze high-fluid-loss pill: G-SEAL 5 ppb success _� G-SEAL 10 ppb - No success FORM-A-BLOK VINSEAL F 7 ppb VINSEAL M 20 ppb 40 ppb in base fluid SAFE CARB 40 7 ppb SAFECARB 250 10 ppb weighted up to NUTPLUG F 6 ppb NUTPLUG F 10 ppb desired density No success Tandem Squeeze FORM-A-BLOK followed by FORM-A SET AK December 8, 2011 CONFIDENTIAL 18 Mi SWACO A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 WBM Lost Circulation Flowchart for Production Interval Losing fluid while drilling Measure rate of loss 1 1 1 . Seepage losses<20 bbl/hr Partial losses 20-60 bbl/hr Severe losses 60—200 bbl/hr or total loss of returns l Jr 1 Pump as a pill and then repeat Pump as a pill and then repeat If fault related drill across fault as needed. as needed. (+1-1-1.5 times the length of the throw) before treating losses 40 ppb pill 80 ppb pill Squeeze high-fluid-loss pill (Pump one or two pills MIX II F 12 ppb MIX II M 24 ppb before proceeding to the next SAFECARB 250 12 ppb SAFECARB 250 24 ppb ` step) NUT PLUG F 8 ppb NUT PLUG F 16 ppb G-SEAL 8 ppb G-SEAL 16 ppb FORM-A-BLOK 80 ppb in water weighted up to desired density • No Success No Success No Success Spot 80 ppb pill SAFECARB 40 35 ppb SAFECARB 250 15 ppb Spot Plug SAFECARB 500 30 ppb • FORM-A-SET AK or FORM-A-PLUG II or Gunk Squeeze December 8, 2011 CONFIDENTIAL 19 Mi SWA A Schkrmberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Additional Lost Circulation Comments Ensure particle sizes of bridging materials can pass through the down-hole tools and motors prior to mixing and spotting. 1. If system LCM does not mediate lost circulation, refer to the "Lost Circulation Flowchart" for the interval. Spot LCM pill across thief zone, if losses stop, pull into casing and apply 200-psi squeeze pressure and watch for pressure bleed-off. If pressure holds for 15 minutes, resume drilling. If pressure does not hold, spot another pill as described above. Continue following decision tree. 2. MI Swaco recommends running a Well Commander circulating sub in the BHA string while drilling potential loss zones to isolate the lower components of the BHA that are sensitive to LCM in order to enable highly concentrated pills of mixed-sized LCM to be spotted as needed. December 8, 2011 CONFIDENTIAL 20 Mi SWAG�� A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 HSE Issues Handling of Drilling Fluid Products Health and Safety • Drilling crews should be instructed in the proper procedures for handling fluid products. • Personal Protective Equipment(PPE)charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. • PPE must be in good working order and be utilized as recommended by the PPE charts. • Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans), as much as possible in order to minimize inventory of partial units. • Ensure all MSDS sheets are up to date and readily available for workers to access for information. Environmental • Ensure that all product stored outside is protected from the weather. • Do not store partial units (sacks)outside if possible. • When transferring fluids and/or cuttings from the rig to tanks, ensure all hoses are properly secured. Perform a transfer checklist as needed in order to avoid spills. December 8, 2011 CONFIDENTIAL 21 Mi SWACO ^1 A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Product Health and Safety Reference HAZARDOUS MATERIALS IDENTIFICATION SYSTEM Product Function Health Flammability Reactivity PPE ASPHASOL SUPREME Shale Inhibitor 1 1 0 E CAUSTIC SODA Alkalinity control 3 0 1 X CITRIC ACID pH Adjuster 1 0 0 E CONQOR 404 Corrosion Inhibitor 1 1 0 J CF DESCO II Dispersant 1 1 0 E DEFOAM X Defoamer 1 1 0 J DRISPAC PLUS SL Fluid Loss Reducer 1 1 0 E DRILZONE Lubricant 1 1 0 E FLOWZAN Viscosifier 1 1 0 E GELEX Bentonite Extender 1 1 0 E G-SEAL Lost Circulation Material 1 1 0 E KLA-STOP Shale Control Agent 0 1 0 J LOTORQ Lubricant 1 1 0 J LUBE 776 Lubricant 1 1 0 J MYACIDE 25G Biocide 3 0 0 J MI WATE(Barite) Weighting Agent *1 0 0 E MI GEL Viscosifier *1 1 0 E MIX II Lost Circulation Material *1 1 0 E POTASSIUM CHLORIDE Shale Inhibitor, Densifier 1 0 0 E RESINEX Filtration Control, Temperature Stability 1 1 0 E SAFECARB Bridging Agent *1 0 0 E SAPP Dispersant 1 1 0 E SALT (NaCl) Shale Inhibitor, Densifier 1 0 0 E SCREENKLEEN Surfactant 1 1 0 E SODIUM METABISULFITE Oxygen Scavenger 1 1 0 J SODA ASH Calcium Precipitator 1 1 0 E LVT 200 Mineral Oil 1 1 0 J VG SUPREME Viscosifier 2 1 0 J LIME Calcium Source 2 0 0 E VERSACOAT HF Emulsifier *2 3 0 J VERSAWET Drilling Fluid Additive 1 1 0 J CACL2 Weighting Agent 1 0 1 E VERSA-MOD Rheology Modifier 1 2 0 J VERSA HRP Viscosifier 2 1 0 J December 8, 2011 CONFIDENTIAL 22 Mi SW�� i1hV\►\ A Schlumberger Company Brooks Range Petroleum Company Brooks Range Petroleum Mustang#1 Product Health and Safety Reference (HMIS)HAZARD RATING 4— Severe hazard 3—Serious hazard 2— Moderate hazard 1 —Slight hazard 0— Minimal hazard *An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A- Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D- Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F- Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K-Air Line Hood or Mask, Gloves, Full Suit, Boots X-Consult your supervisor for special handling directions See Material Safety Data Sheets (MSDS) for more information 0 December 8, 2011 CONFIDENTIAL 23 / °)/\'‘. Brooks Range Petroleum To: Art Saltmarsh(A.O.G.C.C) From: Larry Smith Re: Drilling Hazard Analysis for the North Tarn-1 Exploration well. Date: February 7, 2011 North Tarn-1 Gas Hydrates/Shallow Gas Assessment From Seismic Data: Background: Investigation of seismic data for indications of potential anomalous high pressure zones is a requirement of the AOGCC Regulations. In practice,the only well to have experienced uncontrolled flow of shallow gas is the Cirque#1 well, which blew out in 1992 when it encountered an over pressured K-10 sand shallow to prognosis. Cirque#1 is located approximately 10 miles south of the proposed North Tarn-1 location(see Figure 1). There were no recordable drilling incidents with any other closer exploration wells in the area(Oberon#1,Atlas#1, Colville River#1, and Ataruq-2). However,the recent incident during drilling of the Tarn 2L-320 development well,which took a kick in the K- 10 interval while drilling under balanced, illustrates that you need to be very careful not to drill the K-10 under balanced. ConocoPhillips investigated 3D seismic data at the Cirque location for shallow anomalies that could correlate with and indicate the risk of the gas that was subsequently encountered in Cirque#1 but were unsuccessful (from Buggenhagen,2002). This conclusion makes reliance on seismic detection of shallow hazards uncertain at best. Analysis: Gas Hydrates Analysis: Depending on the geothermal gradient, gas hydrates can be stable to a depth well below the base of the permafrost(Figure 2). In the area of North Tarn-1, gas hydrates are expected to be stable from as shallow as 750 feet(figure 3) down to a depth of as much ✓r 2300 feet subsea(Figure 4). Below 2300 feet subsea, only free gas is expected. The locations of the two seismic lines included in this analysis are shown in Figure 5. Based on regional well correlations,the base permafrost is expected at about 1350 feet subsea or about 0.300 seconds on the seismic. On the west to east seismic profile (Figure 6),there are multiple stacked high amplitude seismic events down to 0.420 seconds, or approximately 1750 ft,which is shallower then the base of the gas hydrate stability zone as predicted by Collett(2008). Below the base of the gas hydrates there are a few 510 L Street,Suite 601,Anchorage,AK 99501 Tel: (907)339-9965 Fax:(907)339-9961 North Tarn-1 Shallow Hazard Analysis scattered amplitude events which probably correlate to scattered sand deposits down to about the base of the K-10 interval at 0.570 seconds or about 2650 feet subsea. The south to north seismic profile which passes through the top-hole section of North Tarn-1 is shown in Figure 7. Again the base of the gas hydrates is expected to correlate to the purple event shown at about 0.410 seconds on the section. Below that depth any amplitudes seen down to the base of the K-10 interval at 0.580 seconds are expected to be scattered sands. The stacking velocity curves nearest to the surface location of North Tarn-1 are shown in Figure 8. From the graph you can see that, from the base of the permafrost, the stacking velocities decrease until 0.900 seconds where,presumably, the compaction effect starts to cause an increase in the rms velocities with depth. In Figure 9 you can see the seismic trace data of the west-east seismic profile overlain on the stacking velocities,which are shown in color in such a way as to clearly high light the permafrost and gas hydrate intervals. You can see the same display on the south-north seismic profile in Figure 10. To mitigate the risk of shallow gas hydrates,the North Tarn-1 drilling plan calls for drilling the hydrate section expeditiously while keeping the drilling fluids as cool as possible to slow the rate of destabilization of the gas hydrates. Over Pressure Analysis: As mentioned in the background section,two wells in the greater North Tarn-1 area have had incidents with encountering over pressured sands in the shallow K-10 section while drilling. The first well was Cirque#1 which blew out in February, 1992, when it encountered an over pressured K-10 sand shallow to prognosis, and was running under balanced while pulling out of the hole in preparation for setting the 9 5/8 inch casing string(Ruckel, 1992). The primary cause of the blow out was attributed to excessive trip v speed which swabbed the well. The other incident was the Tarn 2L-320 development well in early January of this year. According to word on the street, casing was set above the K-10 sand but when they drilled out of the shoe with 9.1 lb/gallon mud,they took a kick in the K-10 sand and had to weigh up the mud to 9.5 lbs/gallon to control the kick. On the south-north seismic profile shown in Figure 7 you can see a possible channel sand right at the K-10 interval which may pose a potential drilling risk. To mitigate the risk of encountering an over pressured K-10 sand, the North Tarn-1 drilling plan calls for setting the surface casing shoe above the K-10 sand interval and drilling out of the shoe ✓ with 9.5 lbs/gallon mud to ensure that we are overbalanced for the K-10 interval. 2 North Tarn-1 Shallow Hazard Analysis Shallow Fault Analysis: No apparent shallow faults are imaged on either of the two seismic lines. Conclusions: There appears to be both gas hydrates and K-10 channel sands in the proposed North v Tarn-1 exploration well. However we believe that by following prudent drilling practices (careful mud volume monitoring; avoiding quick trips out of the shallow hole; drilling over balanced through the K-10 interval)that these risks can be properly mitigated. 3 North Tarn-I Shallow Hazard Analysis Figures: Figure 1: Regional map showing the location of North Tarn-1, nearby wells and the seismic profiles included as Figures 6 and 7. Figure 2: Gas Hydrate stability plot(from Collett,2008) showing that gas hydrates are stable well below the base of the permafrost. In this diagram with the geothermal gradient used, gas hydrates are stable as deep as 1100 meters (3300 ft). See Figure 4 for the predicted depth to the base of gas hydrates stability zone in the North Tarn-1 location. Figure 3: Regional depth map to the top of gas hydrate stability zone (from Collett, 2008). In the vicinity of North Tarn-1 Collett predicts that the top of gas hydrates should be at about 750 feet. Figure 4: Regional depth map to the base of the gas hydrate stability zone (from Collett, 2008) showing that the approximate base of gas hydrates stability zone should be at approximately 2300 feet. Figure 5: Detailed base map showing the location of the seismic profiles presented in Figures 6 and 7. Figure 6: West to East seismic profile through the North Tarn-1 surface location. The predicted base of permafrost based on regional well correlations is at approximately 1200 feet subsea. The higher amplitude events seen below the base permafrost are most likely gas hydrates which extend down to the predicted depth of 1800 feet subsea. The red log curve shown in the log track to the left of the well bore is the stacking velocity Vrms curve at the well location. The stacking velocity averages about 9800 ft/sec in the permafrost, then averages about 9600 ft/sec in the gas hydrate layers and then continues to decrease through the base of the hydrates. Figure 7: South to North seismic profile through the North Tarn-1 surface location again showing the base of the gas hydrates at about 1800 feet subsea. Figure 8: Cross plot of the five nearest stacking velocity(Vrms) curves to the North Tarn-1 surface location showing that the stacking velocities continue to decrease below the base of the gas hydrates until 1.0 second(4100 ft ss)before compaction starts to reverse the trend. Figure 9: West to East seismic profile through the North Tarn-1 surface location with the stacking velocity Vrms velocities shown in color behind the amplitude trace data. Figure 10: South to North seismic profile through the North Tarn-1 surface location with the stacking velocity Vrms velocities in color behind the amplitude trace data. 4 North Tarn-1 Shallow Hazard Analysis References: Buggenhagen, John,2002: Pre-drill Seismic Pore Pressure Prediction for Proposed Well Oberon-1. Memo to Laurie St. Aubin and Mark Chambers: AOGCC Oberon-1 Well History File,pages 73-96. Collett,Timothy,2008: Assessment of Gas Hydrate Resources on the North Slope, Alaska, 2008. USGS web site: http://energy.usgs.gov/flash/AlaskaGHAssessment_slideshow.swf Ruckel, Douglas, 1992: Memo to Dave Johnston,AOGCC, Regarding the Cirque-1 Blowout of February, 12, 1992. AOGCC Cirque-1 Well History File,pages 5-20. 5 I 1 T-1 v e••I`; D 1 33 CIA C l _c it I i' vl �� h 5 0 CI . . 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T - -moi -- 1�, :>II: 0.t@ � I .111111. u0 0 00 N HALLIBURTON Brooks Range Petroleum Corporation 510 L St Ste 601 Anchorage, Alaska 99501 Mustang 1 Alaska United States of America API/UWI TBD Multi String Cement Recommendation Prepared for: Mr. Larry Vendl December 6, 2011 Version: 2 Submitted by: Jeremy Talarovich Halliburton HALLIBURTON 6900 Arctic Blvd Anchorage, Alaska 99518 907.275.2635 Proposal 296822 v.2 HALLIBURTON Job Information 9-5/8" Surface Casing Well Name: Mustang Well#: 1 20"Conductor Casing 0 - 80 ft(MD) Outer Diameter 20.000 in Inner Diameter 19.166 in Linear Weight 901bm/ft 12-1/4" Surface Hole 80- 1995 ft(MD) Inner Diameter 12.250 in Job Excess 250% 12-1/4" Surface Hole 1995 -2495 ft(MD) Inner Diameter 12.250 in 9-411/1 Job Excess 40% 9-5/8" Surface Casing 0-2495 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 401bm/ft Casing Grade L-80 HALLIBURTON Calculations 9-5/8" Surface Casing Spacer: Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: Total Spacer = 336.88 ft3 = 60.00 bbl Cement : (1995.00 ft fill) 80.00 ft* 1.4982 ft3/ft * 0% = 119.86 ft3 1915.00 ft * 0.3132 ft3/ft * 250% = 2099.14 ft3 Total Lead Cement 2219.00 ftt = 395.22 bbl Sacks of Cement = 488 sks Cement : (500.00 ft fill) 500.00 ft* 0.3132 ft3/ft * 40% = 219.23 ft3 Tail Cement = 39.05 bbl Shoe Joint Volume: (80.00 ft fill) 80.00 ft * 0.4257 ft3/ft = 34.06 ft3 Tail plus shoe joint = 253.29 ft3_, = 45.11 bbl Total Tail = 215 sks Total Pipe Capacity: 2495.00 ft * 0.4257 ft3/ft = 1062.21 ft3 = 189.19 bbl Displacement Volume to Shoe Joint: Capacity of Pipe-Shoe Joint = 189.19 bbl-6.07 bbl = 183.12 bbl HALLIBURTON Job Recommendation 9-5/8" Surface Casing Fluid Instructions Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer DUAL SPACER Fluid Density: 10 lbm/gal 45 lbm/bbl Barite(Heavy Weight Additive) Fluid Volume: 60 bbl 0.05 gal/bbl D-AIR 3000L(Defoamer) 0.1 gal/bbl Dual Spacer Mixing Aid EXP(Viscosifier) Fluid 3: Lead Cement Type L,Permafrost DH Fluid Weight 10.90 lbm/gal Slurry Yield: 4.55 ft3/sk -- Total Mixing Fluid: 24.40 Gal/sk Top of Fluid: 0 ft Calculated Fill: 1995 ft Volume: 395.22 bbl Calculated Sacks: 487.69 sks Proposed Sacks: 490 sks Fluid 4: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.18 ft3/sk v 2% Calcium Chloride Pellets (Accelerator) Total Mixing Fluid: 5.18 Gal/sk 0.2% CFR-3 (Dispersant) Top of Fluid: 1995 ft Calculated Fill: 500 ft Volume: 45.11 bbl Calculated Sacks: 214.65 sks Proposed Sacks: 220 sks Fluid 5: Water Spacer Water Displacement Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 6: Mud Mud Displacement Fluid Density: 9.40 lbm/gal Fluid Volume 173.12 bbl • HALLIBURTON Job Procedure 9-5/8" Surface Casing Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 10.0 5.0 60 bbl 3 Cement Lead Cement 10.9 5.0 490 sks 4 Cement Tail Cement 15.8 5.0 220 sks 5 Spacer Displacement Fluid 8.3 5.0 10 bbl 6 Mud Displacement Fluid 9.4 5.0 173.12 bbl HALLIBURTON Engineering Program Results 9-5/8" Surface Casing Design Parameters Fracture Zone Measured Depth 2495.0 ft Fracture Zone Gradient 0.727 psi/ft Fracture Zone Density 14.00 lb/gal Fracture Zone Pressure 1780 psi Reservoir Measured Depth 90.0 ft Reservoir Pore Pressure 44 psi Reservoir Zone Gradient 0.494 psi/ft Reservoir Zone Density 9.50 lb/gal Back Pressure 0 psi Simulator Volume Increment 10.00 bbl Shoe Track Length 80.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Wellbore Orientation Measured Depth True Vertical Deviation Build Angle Azimuth Depth ft ft c. °/(100*ft) ° 0.0 0.0 0.0 0.0 29.0 29.0 0.0 0.00 0.0 1400.0 1400.0 0.0 0.00 0.0 1650.0 1650.0 0.0 0.00 0.0 2495.0 2448.0 33.4 3.95 0.0 2514.0 2465.0 19.1 -75.32 0.0 3269.0 2989.0 69.3 6.66 0.0 8402.0 5518.0 51.4 -0.35 0.0 9604.0 6148.0 65.3 1.16 0.0 9929.0 6308.0 55.7 -2.95 0.0 Wellbore Geometry MD Hole Ex. Hole Dia. Casing OD Casing ID Casing Weight ft % in in in lb/ft 80.0 0.00 19.166 9.625 8.835 40.000 1995.0 250.00 17.135 9.625 8.835 40.000 2495.0 40.00 13.154 9.625 8.835 40.000 HALLIBURTON Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 Mud 9.50 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 10.00 5.00 60.00 12.00 4 Permafrost"L" 10.90 5.00 395.22 79.04 5 Primary Cement 15.80 5.00 45.11 9.02 Top Plug 6 Water 8.33 5.00 10.00 2.00 7 Mud 9.50 5.00 173.12 34.62 Total 693.46 138.69 Temperature Profile, Temperature Profile 1 Measured Depth Casing Circulating Annulus Circulating Temperature Temperature ft °F °F 0.0 32 57 2495.0 80 80 l0 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 9.50 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in lbf lbf lbf 101215532 R(PB) 9.625 12.250 12.000 12.000 0 0 0 -1 *BS-Bow Spring, R(S)- Rigid Solid, R(PB)- Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff ft ft 0.0 2495.0 101215532 70.00 11 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft lbf Ibf 1 2495.0 33.4 0.0 376 0 101215532 2 2455.0 31.8 0.0 689 1162 101215532 3 2415.0 30.2 0.0 624 2344 101215532 4 2375.0 28.6 0.0 558 3544 101215532 5 2335.0 27.1 0.0 491 4762 101215532 6 2295.0 25.5 0.0 423 5996 101215532 7 2255.0 23.9 0.0 354 7247 101215532 8 2215.0 22.3 0.0 285 8512 101215532 9 2175.0 20.7 0.0 214 9790 101215532 10 2135.0 19.2 0.0 143 11082 101215532 11 2095.0 17.6 0.0 71 12386 101215532 12 2055.0 16.0 0.0 1 13700 101215532 13 2015.0 14.4 0.0 74 15025 101215532 14 1975.0 12.8 0.0 147 16358 101215532 15 1935.0 11.3 0.0 221 17699 101215532 16 1895.0 9.7 0.0 295 19047 101215532 17 1855.0 8.1 0.0 370 20401 101215532 18 1815.0 6.5 0.0 445 21760 101215532 19 1775.0 4.9 0.0 520 23122 101215532 20 1735.0 3.4 0.0 595 24487 101215532 21 1695.0 1.8 0.0 671 25854 101215532 22 1655.0 0.2 0.0 418 27222 101215532 23 1615.0 0.0 0.0 49 28589 101215532 24 1575.0 0.0 0.0 0 29957 101215532 25 1535.0 0.0 0.0 0 31324 101215532 26 1495.0 0.0 0.0 0 32692 101215532 27 1455.0 0.0 0.0 0 34059 101215532 28 1415.0 0.0 0.0 0 35427 101215532 29 1375.0 0.0 0.0 0 36794 101215532 30 1335.0 0.0 0.0 0 38162 101215532 31 1295.0 0.0 0.0 0 39529 101215532 32 1255.0 0.0 0.0 0 40897 101215532 33 1215.0 0.0 0.0 0 42264 101215532 34 1175.0 0.0 0.0 0 43632 101215532 35 1135.0 0.0 0.0 0 44999 101215532 36 1095.0 0.0 0.0 0 46366 101215532 37 1055.0 0.0 0.0 0 47734 101215532 38 1015.0 0.0 0.0 0 49101 101215532 39 975.0 0.0 0.0 0 50469 101215532 40 935.0 0.0 0.0 0 51836 101215532 41 895.0 0.0 0.0 0 53204 101215532 42 855.0 0.0 0.0 0 54571 101215532 43 815.0 0.0 0.0 0 55939 101215532 44 775.0 0.0 0.0 0 57306 101215532 __ 45 735.0 0.0 0.0 0 58674 101215532 46 695.0 0.0 0.0 0 60041 101215532 47 655.0 0.0 0.0 0 61409 101215532 48 615.0 0.0 0.0 0 62776 101215532 49 575.0 0.0 0.0 0 64144 101215532 50 535.0 0.0 0.0 0 65511 101215532 51 495.0 0.0 0.0 0 66879 101215532 52 455.0 0.0 0.0 0 68246 101215532 53 415.0 0.0 0.0 0 69614 101215532 54 375.0 0.0 0.0 0 70981 101215532 55 335.0 0.0 0.0 0 72349 101215532 56 295.0 0.0 0.0 0 73716 101215532 57 255.0 0.0 0.0 0 75084 101215532 58 215.0 0.0 0.0 0 76451 101215532 59 175.0 0.0 0.0 0 77819 101215532 60 135.0 0.0 0.0 0 79186 101215532 12 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) 1-1.ALLIBURTON Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force 61 95.0 _ 0.0 0.0 0 80554 101215532 62 55.0 0.0 0.0 0 81921 101215532 63 15.0 0.0 0.0 0 83289 101215532 13 Created:December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Simulation Volume and Pressure Results Annulus fluid is heavier than casing fluid by 294 psi. Apply appropriate back pressure on casing if floating equipment does not hold properly. Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate I Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 10.00 3 1 50.00 50.00 5.00 5.00 28.00 4 1 140.00 141.39 5.00 5.69 48.00 4 1 240.00 251.15 5.00 5.29 68.00 4 1 340.00 346.08 5.00 4.75 88.00 4 1 440.00 441.05 5.00 4.75 102.07 5 1 510.33 527.64 5.00 7.13 108.00 7 1 540.00 551.96 5.00 4.15 128.00 7 3 640.00 640.00 5.00 5.00 138.71 7 3 693.46 693.46 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 9.3 61 0 9.79 9.79 0.0 10.00 50.00 9.1 60 0 9.79 9.79 0.0 28.00 140.00 1.8 0 0 9.79 9.79 18.3 48.00 240.00 1.8 0 0 9.97 9.97 147.0 68.00 340.00 1.8 0 0 10.30 10.30 80.1 1 88.00 440.00 1.8 0 0 10.59 10.59 13.8 102.07 510.33 1.8 0 0 10.86 10.86 228.3 108.00 540.00 1.8 0 0 10.92 10.92 157.7 128.00 640.00 7.6 47 0 11.20 11.20 0.0 138.71 693.46 0.0 845 0 11.81 11.81 0.0 1 Gas Flow Potential Gas Flow Potential 2.47 at Reservoir Zone Measured Depth 90.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. Wells in this category fall into flow condition 1. 14 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Pressure to Break Circulation - Hydrostatic Pressures Total Depth 1208 psi Fracture Zone 1208 psi Pressure to Break Circulation Gel Strength Surface Pressure Total Depth Additional Fracture Zone Pressure Additional Pressure Ibf/(100*ft2) psi psi psi 25.00 57 34 34 50.00 115 68 68 75.00 172 101 101 100.00 229 135 135 200.00 458 270 270 Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft Mud Water Modified Dual Spacer 0.0 0.0 Permafrost"L" 1995.0 0.0 Primary Cement 500.0 80.0 1995.0 2415.0 Water 131.9 2283.1 Mud 2283.1 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal 0.02 9.79 9.67 2. Water 2.02 9.79 9.69 3. Modified Dual Spacer 14.02 9.79 9.70 4. Permafrost"L" 38.00 9.71 9.59 2. Water 38.00 9.71 9.59 3. Modified Dual Spacer 50.00 9.99 9.61 4. Permafrost"L" 93.07 10.66 9.72 5. Primary Cement 102.08 10.86 9.54 6. Water 104.08 10.86 9.55 7. Mud 132.00 11.35 10.36 5. Primary Cement 138.70 12.15 11.12 Prior to plug landing 138.72 11.81 10.90 Plug Landed 15 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) o O N a, N 4. a C .-+ O N �'" VA o 0 a _ th. 0- .,4. wl1l1ll II vel 0 b o N --_., io. Vo U r. GO o ~ a c�1 N 5 U C tri Q Q O N cid 40 M O 0 .5 48 cll ,e � cd ~ oQ 0 v 0. •,-, 0 > 0 o" 04 ••i 4., II le -0oW H 0 z bk Z o v) .. WI z b • 0 = -z 5 a o •� N s•—• ala • .-w C 3 0 V -o e J ori , Ii , iiiI , Iiii1i 11100 w0 o 0 0 0 0 0 0 ° A J 0 oN 0 U Q = Q (�)ux 11 � o t N a .-. 71 LL cd 4 A y 0 0 Ev w 0 0 0 0 0 0 U a.+ N M h b O(� O -o Y (1E2/Cil)Gal . 174 00 t!..31 fal Tr M (NI - O .� ,-, C. 00 1 , I I I I i � I I 00 ,--, < N O N Q) _ U 4 N o � p 0 00 0 clCo_ag > o �wi. .9 z a4 A-) •Z NA0 a W � � �x CI UQ ° 1 O al 6 F -0 �-- W a ', rn 0 0 r ,A E-. W A a o Q' z g s 0 CV 8- al M CC Z CA /�' U j f � W ;•a .h r l U J O o 0 0 0 0 0 0 0� oom J Q 0, 0 0 r 0 O C O oO N O 00 O = ,MO U 1 gsc)amssard o .-+ N var -' ,o so o v > >^ ei U aaiii0 UA o N _o 0 v N ,p a) E ii y U b N C4 o b Vi 1710 6 V] U O N o AA O ,J hI to A" 0 ou — W g o01) 0 N...../ �� o cil r: cU I w �Fy O 0 w E a w CI? v z 2 vs 0 44 F.I a a ' m c a = U tll 71 O O O O O O O O O Q I V10 O v1 O " N N M QA. U _ (14) L A o v a r. U d- cn N O v6 o v > I , I I I U iI O (isc)amssar3 PIliancl Si Q o 0 N 0 0 0 0 0 0 0 0 0 0 ^4. Mo 0 O O 0O O O O -40 I �___� I 1- L--1L--_1- I , O O E b o. �, AO - O -o 8 0 ct O cn e3o N U 0 0 0 0= Q � 1T ti if � c z Np CT .:4:0, 0 6 < on r:Il 0 CI) :412 o 0 1 o_. U w O 3 H O w a 44 Z g Z 0.1 el ci O o li CO fS. O-- C M RI u�3 , — I 1 I �_ _ o aA J 5 Q M N — 0 CA 00el r _ (gimp I-11kiisuaJ Pin-13`GAA 1J 8117Z ie Mg or,, 4. .6 o (5.) milli illlllliillilll�i IIiii-il 1 r - -o o° i) a) -o O CA cc cn0 _co r. 0 N U N A ryr9� V'1cri C^ A 11 Ua0V •,-( cF.1 0 z a-d° c o O -ta co v) g 0o o U W a O 4Wm* H =L+ a CI W L. b,A _o a xbo Eizit OOH 0 P4 im go C >~ O11 I 1 1 I I 1 I I I I I 1 f I I I 1 I I I I I 1 I I I 0 Q �.1 1 �I Po O O o O 0 o O O Q N N M I) CI U (ii)LIQ PaJnsI Job Information 7" Intermediate Casing Well Name: Mustang Well#: 1 9-5/8" Surface Casing 0-2495 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.835 in Linear Weight 40 lbm/ft Casing Grade L-80 8-1/2" Intermediate Hole 2495 -9484 ft(MD) Inner Diameter 8.500 in Job Excess 40% 7"Intermediate Casing 0-9484 ft(MD) Outer Diameter 7.000 in Inner Diameter 6.276 in Linear Weight 26 lbm/ft Casing Grade L-80 7"MSC 6600 ft(MD) Calculations 7"Intermediate Casing Stage 1 Spacer: 316.26ft* 0.1268ft3/ft*40% = 56.15 ft3 Total Spacer = 56.15 ft3 = 10.00 bbl Spacer: 948.77 ft* 0.1268 ft3/ft *40% = 168.44 ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Cement: (2884.00 ft fill) 2884.00 ft*0.1268 ft3/ft*40% = 512.00 ft3 Tail Cement = 512.00 ft3 = 91.19 bbl Shoe Joint Volume: (80.00 ft fill) 80.00 ft* 0.2148 ft3/ft = 17.19 ft3 = 3.06 bbl Tail plus shoe joint = 529.19 ft3 Total Tail = 460 sks Total Pipe Capacity: 9484.00 ft* 0.2148 ft3/ft = 2037.44 ft3 = 362.88 bbl Displacement Volume to Shoe Joint: Capacity of Pipe-Shoe Joint = 362.88 bbl-3.06 bbl = 359.82 bbl HALLIBURTON Stage 2 Spacer: 439.73 ft* 0.1585 ft3/ft * 0% = 69.69 ft3 556.23 ft* 0.1268 ft3/ft*40% = 98.75 ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Spacer: 948.77 ft* 0.1268 ft3/ft *40% = 168.44ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Cement: (2600.00 ft fill) 2600.00 ft* 0.1268 ft3/ft*40% = 461.59 ft3 Tail Cement = 461.59 ft3 = 82.21 bbl Shoe Joint Volume: (0.00 ft fill) 0.00 ft* 0.2148 ft3/ft = 0.00 ft3 = 0.00 bbl Tail plus shoe joint = 461.59 ft3 = 82.21 bbl Total Tail = 401 sks Total Pipe Capacity: 6600.00 ft* 0.2148 ft3/ft = 1417.87 ft3 = 252.53 bbl Displacement Volume to Shoe Joint: Capacity of Pipe-Shoe Joint = 252.53 bbl-0.00 bbl = 252.53 bbl 23 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) Job Recommendation 7"Intermediate Casing Fluid Instructions Stage 1 Fluid 1:Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 2: Water Based Spacer MODIFIED DUAL SPACER Fluid Density: 11.50 lbm/gal Fluid Volume: 30 bbl Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk V 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 Gal/sk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 6600 ft 0.35 % SCR-100(Retarder) Calculated Fill: 2884 ft 0.1 % CFR-3 (Dispersant) Volume: 94.25 bbl Calculated Sacks: 460.17 sks Proposed Sacks: 470 sks Fluid 4: Water Spacer Water Displacement Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5:Mud Mud Displacement Fluid Density: 10.60 lbm/gal Fluid Volume 349.82 bbl 7"MSC 6600 ft(MD) HALLIBURTON Stage 2 Fluid 1: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 30 bbl Fluid 2:Water Based Spacer MODIFIED DUAL SPACER Fluid Density: 11.50 lbm/gal Fluid Volume: 30 bbl Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.3 % Halad(R)-344(Low Fluid Loss Control) Total Mixing Fluid: 4.97 GaIIsk 0.3 % Halad(R)-413 (Low Fluid Loss Control) Top of Fluid: 4000 ft 0.35 % SCR-100(Retarder) Calculated Fill: 2600 ft 0.1 % CFR-3 (Dispersant) Volume: 82.21 bbl Calculated Sacks: 401.38 sks Proposed Sacks: 410 sks Fluid 4: Water Spacer Water Displacement Fluid Density: 8.33 lbm/gal Fluid Volume: 10 bbl Fluid 5:Mud Mud Displacement Fluid Density: 10.60 lbm/gal Fluid Volume 242.53 bbl 25 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) Job Procedure 7"Intermediate Casing Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min Stage 1 1 Spacer Spacer 8.3 5.0 10 bbl 2 Spacer Weighted Spacer 11.5 5.0 30 bbl 3 Cement Tail Cement 15.8 5.0 470 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid 10.6 5.0 349.82 bbl Stage 2 1 Spacer Spacer 8.3 5.0 30 bbl 2 Spacer Weighted Spacer 11.5 5.0 30 bbl 3 Cement Tail Cement 15.8 5.0 410 sks 4 Spacer Displacement Fluid 8.3 5.0 10 bbl 5 Mud Displacement Fluid 10.6 5.0 242.53 bbl Engineering Program Results 7"Intermediate Casing Intermediate Stage 1 Design Parameters Fracture Zone Measured Depth 9484.0 ft Fracture Zone Gradient 0.779 psi/ft Fracture Zone Density 15.00 lb/gal Fracture Zone Pressure 4750 psi Reservoir Measured Depth 9484.0 ft Reservoir Pore Pressure 3294 psi Reservoir Zone Gradient 0.540 psi/ft Reservoir Zone Density 10.40 lb/gal Back Pressure 0 psi Simulator Volume Increment 5.00 bbl Shoe Track Length 80.0 ft Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Wellbore Orientation Measured Depth True Vertical Deviation Build Angle Azimuth Depth ft ft °I(100*ft) ° 0.0 0.0 0.0 0.0 29.0 29.0 0.0 0.00 0.0 1400.0 1400.0 0.0 0.00 0.0 1650.0 1650.0 0.0 0.00 0.0 2495.0 2448.0 33.4 3.95 0.0 2514.0 2465.0 19.1 -75.32 0.0 3269.0 2989.0 69.3 6.66 0.0 8402.0 5517.8 51.4 -0.35 0.0 9604.0 6147.8 65.3 1.16 0.0 9929.0 6307.8 55.7 -2.95 0.0 Wellbore Geometry MD Hole Ex. Hole Dia. Casing OD Casing ID Casing Weight ft % in in in lb/ft 2495.0 0.00 8.835 7.000 _ 6.276 26.000 9484.0 40.00 9.031 7.000 6.276 26.000 HALLIBURTDN Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 35/25 Mud 10.60 5.00 0.00 0.00 2 Water 8.33 5.00 10.00 2.00 3 Modified Dual Spacer 11.50 5.00 30.00 6.00 4 Primary Cement 15.80 5.00 94.25 18.85 Top Plug 5 Water 8.33 5.00 10.00 2.00 6 35/25 Mud 10.60 5.00 349.82 69.96 Total 494.08 98.82 Temperature Profile, Temperature Profile 1 Measured Depth Casing Circulating Annulus Circulating Temperature Temperature ft °F °F 0.0 32 76 9484.0 120 120 28 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 10.60 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in In lbf ibf ibf 101215529 R(PB) 7.000 8.500 8.250 8.250 0 0 0 -1 *BS-Bow Spring, R(S)-Rigid Solid, R(PB)-Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff ft ft 6600.0 9484.0 101215529 70.00 29 Created:December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft Ibf lbf 1 9484.0 63.9 0.0 391 0 101215529 2 9444.0 63.4 0.0 776 390 101215529 3 9404.0 62.9 0.0 770 786 101215529 4 9364.0 62.5 0.0 763 1189 101215529 5 9324.0 62.0 0.0 757 1598 101215529 6 9284.0 61.6 0.0 750 2013 101215529 7 9244.0 61.1 0.0 743 2434 101215529 8 9204.0 60.6 0.0 736 2861 101215529 9 9164.0 60.2 0.0 729 3295 101215529 10 , 9124.0 59.7 0.0 722 3734 101215529 11 9084.0 59.2 0.0 715 4180 101215529 12 9044.0 58.8 0.0 708 4632 101215529 13 9004.0 58.3 0.0 700 5089 101215529 14 8964.0 57.9 0.0 693 5553 101215529 _ 15 8924.0 57.4 0.0 685 6023 101215529 16 8884.0 56.9 0.0 678 6498 101215529 17 8844.0 56.5 0.0 670 6979 101215529 18 8804.0 56.0 0.0 662 7467 101215529 19 8764.0 55.5 0.0 654 7960 101215529 20 8724.0 55.1 0.0 646 8459 101215529 21 8684.0 54.6 0.0 638 8963 101215529 22 8644.0 54.2 0.0 630 9473 101215529 23 8604.0 53.7 0.0 621 9990 101215529 24 8564.0 53.2 0.0 613 10511 101215529 25 8524.0 52.8 0.0 605 11038 101215529 26 8484.0 52.3 0.0 596 11571 101215529 27 8444.0 51.8 0.0 587 12110 101215529 28 8404.0 51.4 0.0 642 12654 101215529 29 8364.0 51.5 0.0 711 13196 101215529 30 8324.0 51.6 0.0 717 13737 101215529 31 8284.0 51.8 0.0 719 14277 101215529 32 8244.0 51.9 0.0 722 14814 101215529 33 8204.0 52.0 0.0 725 15350 101215529 34 8164.0 52.2 0.0 727 15884 101215529 35 8124.0 52.3 0.0 730 16417 101215529 36 8084.0 52.5 0.0 732 16948 101215529 37 8044.0 52.6 0.0 735 17477 101215529 j 38 8004.0 52.7 0.0 738 18005 101215529 39 7964.0 52.9 0.0 740 18530 101215529 40 7924.0 53.0 0.0 743 19054 101215529 41 7884.0 53.2 0.0 745 19577 101215529 I 42 7844.0 53.3 0.0 748 20097 101215529 43 7804.0 53.4 0.0 750 20616 101215529 44 7764.0 53.6 0.0 753 21134 101215529 45 7724.0 53.7 0.0 756 21649 101215529 46 7684.0 53.9 0.0 758 22163 101215529 47 7644.0 54.0 0.0 761 22675 101215529 48 7604.0 54.1 0.0 763 23185 101215529 49 7564.0 54.3 0.0 766 23694 101215529 50 7524.0 54.4 0.0 768 24201 101215529 51 7484.0 54.6 0.0 770 24706 101215529 52 7444.0 54.7 0.0 773 25209 101215529 53 _ 7404.0 54.8 - 0.0 775 25711 101215529 54 7364.0 55.0 0.0 778 26211 101215529 55 7324.0 55.1 0.0 780 26709 101215529 56 7284.0 55.3 0.0 783 27206 101215529 57 7244.0 55.4 0.0 785 27700 101215529 58 7204.0 55.6 0.0 788 28193 101215529 59 7164.0 55.7 0.0 790 28684 101215529 60 7124.0 55.8 0.0 792 29174 101215529 30 Created:December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force 61 7084.0 56.0 0.0 795 29661 101215529 62 7044.0 56.1 0.0 797 30147 101215529 63 7004.0 56.3 0.0 800 30631 101215529 64 6964.0 56.4 0.0 802 31114 101215529 65 6924.0 56.5 0.0 804 31594 101215529 66 6884.0 56.7 0.0 807 32073 101215529 67 6844.0 56.8 0.0 809 32550 101215529 68 6804.0 57.0 0.0 811 33025 101215529 69 6764.0 57.1 0.0 814 33498 101215529 70 6724.0 57.2 0.0 816 33970 101215529 71 6684.0 57.4 0.0 818 34440 101215529 72 6644.0 57.5 0.0 820 34908 101215529 73 6604.0 57.7 0.0 43384 35374 101215529 31 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Simulation Volume and Pressure Results Ili Annulus fluid is heavier than casing fluid by 463 psi. Apply appropriate back pressure on casing if floating equipment does not hold properly. Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 6.00 3 1 30.00 30.00 5.00 5.00 15.00 4 1 75.00 75.00 5.00 5.00 25.00 4 1 125.00 125.00 5.00 5.00 28.87 6 1 144.34 144.34 5.00 5.00 38.00 6 1 190.00 190.00 5.00 5.00 48.00 6 1 240.00 240.00 5.00 5.00 58.00 6 1 290.00 290.00 5.00 5.00 68.00 6 1 340.00 340.00 5.00 5.00 78.00 6 1 390.00 390.00 5.00 5.00 88.00 6 1 440.00 440.00 5.00 5.00 98.00 6 1 490.00 490.00 5.00 5.00 98.83 6 1 494.08 494.08 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 110.1 884 0 12.88 12.88 0.0 6.00 30.00 110.7 889 0 12.88 12.88 0.0 15.00 75.00 78.8 628 0 12.88 12.88 0.0 25.00 125.00 34.4 266 0 12.88 12.88 0.0 28.87 144.34 32.3 249 0 12.88 12.88 0.0 38.00 190.00 53.6 423 0 12.88 12.88 0.0 48.00 240.00 75.4 600 0 12.88 12.88 0.0 58.00 290.00 72.0 573 0 12.88 12.88 0.0 68.00 340.00 66.3 527 0 12.88 12.88 0.0 78.00 390.00 61.5 487 0 12.83 12.83 0.0 88.00 440.00 113.2 909 0 13.63 13.63 0.0 98.00 490.00 177.0 1430 0 14.64 14.64 0.0 98.83 494.08 0.0 1968 0 12.00 12.00 0.0 Gas Flow Potential Gas Flow Potential 4.67 at Reservoir Zone Measured Depth 9484.0 ft 32 Created:December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Based on analysis of the above outlined well conditions,this well is considered to have a MODERATE gas flow potential.Wells in this category fall into flow condition 2. Pressure to Break Circulation - Hydrostatic Pressures Total Depth 3357 psi Fracture Zone 3357 psi Pressure to Break Circulation Gel Strength Surface Pressure Total Depth Additional Fracture Zone Pressure Additional Pressure Ibf/(100*ft2) psi psi psi 25.00 526 400 400 50.00 1052 800 800 75.00 1578 1200 1200 100.00 2104 1601 1601 200.00 4209 3201 3201 Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft 35/25 Mud 5335.0 0.0 Water 316.3 5335.0 Modified Dual Spacer 948.8 5651.2 Primary Cement 2884.0 80.0 6600.0 9404.0 Water 261.4 9142.6 35/25 Mud 9142.6 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal 0.02 12.88 12.88 2.Water 2.02 12.88 12.88 3. Modified Dual Spacer 8.02 12.88 12.88 4. Primary Cement 26.87 12.88 12.88 5.Water 28.87 12.88 12.88 6. 35/25 Mud 73.00 12.85 12.85 2.Water 75.00 12.76 12.76 3. Modified Dual Spacer 81.00 12.94 12.94 4. Primary Cement 98.82 14.72 14.72 Prior to plug landing 98.83 12.00 12.00 Plug Landed 33 Created:December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) • O 000 Gr ^,N N Q '1.1.1 ""' VO lC E. >� aa�— Q E cv y pL, c0 6 h ^, y Sb C 0 Ur AroN `: U , O o 0 NN r7 N -d yN U I I Q 0y d) N 1 174 cC F. 07 U yh.a:r ~ N m N — es.oo N 1, N Om0rn v 6 mm 7 U O N O -` A v O ; i r`^ N H O ti 'b O ' Wrn Z 0 II - M Uo aa' +a .O > 0 rag 10U o . 0 _Ln o a00 oo W 0�wM•,:, /��y w II %�1 �1 ' M4ysi� .: a�a cm H O a > 0 V F, Lu 1Z _.___ _ - .. ., n ttI) 00 \\ V2 bo 0 0 Cl0r� I-• - g Cr _ - ~ . ' Coo o o 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 � = V •1-1 N m 1 In '.D N 00 � O 0 U � I Q6To (I)tpkaremsErow 0 i I c� a o UN N 4 cd 7." ^ ,O 0 0 C >^ 174 L) fai id N foNU� 0 U O P-1 ^4 .- cd O N E w 0 0000 U N M V1 �O U [" 5 'b 4. c4:4 Fri. v) U V1 1- M N — O I , I , 1_ , I , 1 ' 1 O .-, d in o cllN U 0 AQ N N � � r 1 o Tr Uo H a� 4.' 1 '7 rA z ocd ►a� o enNm o U Q a t,-0 00 O ~O a o 0. y sa a _= 0A 4.1 O v �� z U to 1 g 2 � � Nu o0o a" °C3- w e�e � U6, I.1 8__ U O y /1 O O O O 0 O O O O O C , A ...1 V a 0 0O O O O O 09 O O O O O = Qin 1. 71. ,:t I' l• M m m m M 1 U (Isc)aanssa u U 0 o VD 000a — - N N 4 u u r, O UA o O O "4. N w > N i+ U l a) a '° A O O -o w cA U 0 N -4A AA p 5 N Ev -M ti WJ O 'C� OU (3.) Qx _� o im 0 a. N w 0,4 z L.1Z Z ciJ r/1 F. h Oto 0 y c7o U' 00 1-4g Fr S 4U 0 O O O O O O O A = A S' (uuk)alu2I0.,O N .Nr d U z I TI M N ~ O 0- t: U 7 O (! j)�s -kl Piiipticl o c 0 T., ' N '-' N "4. - O 09 O 1O O O O O O O `1 `>0 N ,-, .., .-, ,-, ,-, 00 Tt N O O P a E 1 I I I 1 I 1 , , , 1 1 1 I 1 1 I o y� 1i- Q v tn 1 1.94 O 0 QA 0 NP 2 cd 1 ti E �' O rl g c O z it-11 � Azi r�r rn U g a., 4- ' 4 g ''-4ai d t4 a OV) 6 a -o N w g 0 0 w 4- 41 0 E- tip M y a L m P, m 0s gz 0 c J E Q ‘D in Tr M N -- O 0\ 00 2 a I (i�igi)uI 1c !suu(PP-14'Gni8 9609 le dJ3 000 ,rN 7 V U N O A -0 0 ii •b O CO _o 0 N U 7) AA N P � j coy . N �-I o 1-4 A ,-i U a '-) o Z V) , o 0 O 71- o W O Oi a No CII imii 0 on O O ;NI 44 g o 0 j , , i I , 1 . , 1 , i O p 0 0 0 0 0 0 0 0 0 0 0 "0 0 0 0 0 0 0 0 0 0 0 0 0 m 0 o 0 0 000 0 o0 O 1J)InchaP mNi Intermediate Stage 2 Design Parameters Fracture Zone Measured Depth 6600.0 ft Fracture Zone Gradient 0.756 psi/ft Fracture Zone Density 14.55 lb/gal Fracture Zone Pressure 3381 psi Reservoir Measured Depth 6600.0 ft Reservoir Pore Pressure 2365 psi Reservoir Zone Gradient 0.529 psi/ft Reservoir Zone Density 10.18 lb/gal Back Pressure 0 psi Simulator Volume Increment 5.00 bbl Additional Pressure to Seat Plug 500 psi Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No u Wellbore Orientation Measured Depth True Vertical Deviation Build Angle Azimuth Depth ft ft °/(100*ft) ° 0.0 0.0 0.0 0.0 29.0 29.0 0.0 0.00 0.0 1400.0 1400.0 0.0 0.00 0.0 1650.0 1650.0 0.0 0.00 0.0 2495.0 2448.0 33.4 3.95 0.0 2514.0 2465.0 19.1 -75.32 0.0 3269.0 2989.0 69.3 6.66 0.0 8402.0 5517.8 51.4 -0.35 0.0 9604.0 6147.8 65.3 1.16 0.0 9929.0 6307.8 55.7 -2.95 0.0 Wellbore Geometry MD Hole Ex. Hole Dia. Casing OD Casing ID Casing Weight ft % in in in lb/ft 2495.0 0.00 8.835 7.000 6.276 26.000 6600.0 40.00 9.031 7.000 6.276 26.000 Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 35/25 Mud 10.60 5.00 0.00 0.00 2 Water 8.33 5.00 30.00 6.00 3 Modified Dual Spacer 11.50 5.00 30.00 6.00 4 Primary Cement 15.80 5.00 82.21 16.44 Top Plug 5 Water 8.33 5.00 10.00 2.00 6 35/25 Mud 10.60 5.00 242.53 48.51 Total 394.75 78.95 HALLIBURTON Temperature Profile, Temperature Profile 1 Measured Depth Casing Circulating Annulus Circulating Temperature Temperature ft °F °F 0.0 32 76 9484.0 120 120 40 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizers Centralizer Parameters Calculated Standoff/Spacing Profile Use Average Joint Lengths Yes Torque and Drag Calculations No Fluid Profile During Mud Conditioning Mud Density 10.60 lb/gal Maximum number of joints per centralizer 4.00 Minimum number of joints per centralizer 1.00 Calculate Standoff Above Yes Centralizer Specifications Part Number Type* COD Hole Nom. Min.Dia. Start Run Rest. Bows Dia. Dia. Force Force Force in in in in Ibf Ibf Ibf 101215529 R(PB) 7.000 8.500 8.250 8.250 0 0 0 -1 *BS- Bow Spring, R(S)- Rigid Solid, R(PB)- Rigid Positive Bar Constant Spacing/Standoff Centralizer Intervals Top MD Bottom MD Cent.A Required Freq.Cents. Freq.Joints Standoff • ft ft 4000.0 6600.0 101215529 70.00 41 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizer Placement Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force ft lbf lbf 1 6600.0 57.7 0.0 368 0 101215529 2 6560.0 57.8 0.0 739 464 101215529 3 6520.0 57.9 0.0 741 927 101215529 4 6480.0 58.1 0.0 743 1387 101215529 5 6440.0 58.2 0.0 745 1846 101215529 6 6400.0 58.4 0.0 748 2303 101215529 7 6360.0 58.5 0.0 750 2758 101215529 8 6320.0 58.7 0.0 752 3211 101215529 9 6280.0 58.8 0.0 754 3663 101215529 10 6240.0 58.9 0.0 756 4113 101215529 11 6200.0 59.1 0.0 759 4560 101215529 12 6160.0 59.2 0.0 761 5006 101215529 13 6120.0 59.4 0.0 763 5451 101215529 14 6080.0 59.5 0.0 765 5893 101215529 15 6040.0 59.6 0.0 767 6334 101215529 16 6000.0 59.8 0.0 769 6772 101215529 17 5960.0 59.9 0.0 772 7209 101215529 18 5920.0 60.1 0.0 774 7644 101215529 19 5880.0 60.2 0.0 776 8077 101215529 20 5840.0 60.3 0.0 778 8508 101215529 21 5800.0 60.5 0.0 780 8938 101215529 22 5760.0 60.6 0.0 782 9365 101215529 23 5720.0 60.8 0.0 784 9791 101215529 24 5680.0 60.9 0.0 786 10215 101215529 25 5640.0 61.0 0.0 788 10637 101215529 26 5600.0 61.2 0.0 790 11057 101215529 27 5560.0 61.3 0.0 793 11475 101215529 28 5520.0 61.5 0.0 795 11892 101215529 29 5480.0 61.6 0.0 797 12306 101215529 30 5440.0 61.7 0.0 799 12719 101215529 31 5400.0 61.9 0.0 801 13129 101215529 32 5360.0 62.0 0.0 803 13538 101215529 33 5320.0 62.2 0.0 805 13945 101215529 34 5280.0 62.3 0.0 807 14350 101215529 35 5240.0 62.4 0.0 809 14754 101215529 36 5200.0 62.6 0.0 811 15155 101215529 37 5160.0 62.7 0.0 813 15554 101215529 38 5120.0 62.9 0.0 814 15952 101215529 39 5080.0 63.0 0.0 816 16347 101215529 40 5040.0 63.1 0.0 818 16741 101215529 41 5000.0 63.3 0.0 820 17133 101215529 42 4960.0 63.4 0.0 822 17523 101215529 43 4920.0 63.6 0.0 824 17911 101215529 44 4880.0 63.7 0.0 826 18297 101215529 45 4840.0 63.8 0.0 828 18681 101215529 46 4800.0 64.0 0.0 830 19063 101215529 47 4760.0 64.1 0.0 832 19443 101215529 48 4720.0 64.3 0.0 833 19822 101215529 49 4680.0 64.4 0.0 835 20198 101215529 50 4640.0 64.5 0.0 837 20573 101215529 51 4600.0 64.7 0.0 839 20946 101215529 52 4560.0 64.8 0.0 841 21316 101215529 53 4520.0 65.0 0.0 843 21685 101215529 54 4480.0 65.1 0.0 844 22052 101215529 55 4440.0 65.2 0.0 846 22417 101215529 56 4400.0 65.4 0.0 848 22780 , 101215529 57 4360.0 65.5 0.0 850 23141 101215529 58 4320.0 65.7 0.0 851 23500 101215529 59 4280.0 65.8 0.0 853 23857 101215529 60 4240.0 65.9 0.0 855 24212 101215529 61 4200.0 66.1 0.0 857 24565 101215529 42 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Centralizer Measured Deviation Azimuth Restoring Tension Centralizer Number Depth Force 62 4160.0 66.2 0.0 858 24917 101215529 63 4120.0 66.4 0.0 860 25266 101215529 64 4080.0 66.5 0.0 862 25613 101215529 65 4040.0 66.6 0.0 864 25959 101215529 66 4000.0 66.8 0.0 25144 26302 101215529 43 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Simulation Volume and Pressure Results Annulus fluid is heavier than casing fluid by 277 psi. Apply appropriate back pressure on casing if floating equipment does not hold properly. Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 9.00 3 1 45.00 45.00 5.00 5.00 18.00 4 1 90.00 90.00 5.00 5.00 28.00 4 1 140.00 140.00 5.00 5.00 31.00 6 1 155.00 155.00 5.00 5.00 41.00 6 1 205.00 205.00 5.00 5.00 51.00 6 1 255.00 255.00 5.00 5.00 61.00 6 1 305.00 305.00 5.00 5.00 71.00 6 1 355.00 355.00 5.00 5.00 78.97 6 1 394.75 394.75 0.00 0.00 Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 78.4 626 0 12.80 12.80 0.0 9.00 45.00 86.3 689 0 12.80 12.80 0.0 18.00 90.00 57.7 456 0 12.80 12.80 0.0 28.00 140.00 9.0 59 0 12.80 12.80 0.0 31.00 155.00 11.4 79 0 12.80 12.80 0.0 41.00 205.00 32.4 249 0 12.80 12.80 0.0 51.00 255.00 51.4 405 0 12.76 12.76 0.0 61.00 305.00 35.7 276 0 12.47 12.47 0.0 71.00 355.00 85.1 680 0 13.62 13.62 0.0 78.97 394.75 0.0 1467 0 16.84 11.66 0.0 Gas Flow Potential Gas Flow Potential 5.54 at Reservoir Zone Measured Depth 6600.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MODERATE gas flow potential. Wells in this category fall into flow condition 2. 44 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) • 0 HALLIBURTON Pressure to Break Circulation - Hydrostatic Pressures Total Depth 2463 psi Fracture Zone 2463 psi Pressure to Break Circulation Gel Strength Surface Pressure Total Depth Additional Fracture Zone Pressure Additional Pressure Ibf/(100*ftz) psi psi psi 25.00 369 282 282 50.00 739 564 564 75.00 1108 845 845 100.00 1478 1127 1127 200.00 2955 2254 2254 Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft 35/25 Mud 2055.3 0.0 Water 996.0 2055.3 Modified Dual Spacer 948.8 3051.2 Primary Cement 2600.0 4000.0 Water 261.4 6338.6 35/25 Mud 6338.6 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD min lb/gal lb/gal 0.02 12.80 12.80 2. Water 6.02 12.81 12.81 3. Modified Dual Spacer 12.02 12.81 12.81 4. Primary Cement 28.47 12.80 12.80 5. Water 30.47 12.80 12.80 6. 35/25 M u d 51.00 12.76 12.76 2. Water 57.00 12.30 12.30 3. Modified Dual Spacer 63.00 12.60 12.60 4. Primary Cement 78.95 14.22 14.22 Prior to plug landing 78.97 11.66 11.66 Plug Landed 45 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) o a -; N �yU ON _ O ..M O0 7 ut N .--. • ain 7 _ to 3 N a) �Ic H5 174 U — — oN cn o M O , 1 1 in - c N NN ' _ O O 000 N h N e} N.� N. m ,...., U M N O 0` Q Q vi • It O i 0 0 0 `G k N O CI , .1 b � , W - o, 1 z p `��' 0 ...,. i E4 7, o > o 0 08 lin o _ - a .b � - 0 s r w ° w 0 0 0 hi r Of) in q) bo o .' +y p .& � m a J o V •� 0 0 0 0 0 0 0 0 A Q % = tu N M Tr In z S U � I .:4 ili (11)u 13 o a -- N 4 4 171U eu GN O -1.. ;� N O al fa, 7d G) §.» N �p E b A U o UQ 2 E EU EA 6 w In aU) a ;b 7 o . N Cao 3 a 3 M 44 0 00 ' 00 0 (jgj) On InCr ,L__ - 1 i o �N - N ij i ct L O O ti � 0.1) Cd > : Ciao - O a g N �A ' N v� V y O CJ N � w ..14 lob Eli U Q 1 _o 4 oo" y O .1' O M A a -. z toi :_,. --,..), 4.,. ,...). g 2 02i .i�' n C6 r. 631) O y iO a j F O - O 4 0 2 . m i.• .10 — (..) _ ..g, c U I I I I I I I I I ' l I 11 1 1 1 I 1 I 1 1 I T 1 1 O U 4, N Oin N O Q Q •L M m m N N N N U = co) ( sa'd o a -. N - ,O 1-4U z Ory ,--i 0 '... "" ^rn p O 7 vj N ,-.. N N OO U N GL Ao b . 7 - ii C) y I- 'O U 0 V1 0 - ~ O N . . AAA till L4 o N i1 ro m s 1-. —, a3 goti � Unci - •� C) Zv O cO -~ w 0 obi U Qx 14Ez I 0 Lwi E-4 � a w Ct z �r � d 2 7\1 C/1 m o 0 U1 c ,-, . yy b4 0t : 0 VI FPO- 3 a O 0 • :. U i 0 C) y .1 Z 0 0 0 0 0 0 0 0 A In tn tn tn kr) kr) kr) kr) o a Q O N NN VN N NN000 ( )(JAL l U I A o a. — (-14-- N4 'iii C.) (tel)alg2I 0 N �_ o .,M O0 U z to .1 M N r. o a h N "", I I I I I 1 I qD N OSd)aanssaki P 110A1 Q 1 E p^ EU N U OO O Oo Q O . s tn N OO y O U O w , 0 V] M 0 _ N U 0 9 O M E" N 43 O 0° ed ?, N 2 ^ z Yv 04 g . § < = ('1 fal O 0o a > 0 Q a A ©'- - 0 E- [4 o z0 to 0 ct A 0 - $ Y M .1 E3o J E ¢ ,0 M N O CA 00 +' = (03/qI)uI AlTsuaQ PpT3`GAL$ZLw le x g ON ^;M 7v 1 N UQ 0 a4 — ON ii N Oit y Ct V) 00 O N 0 N N t" _ Q i 74 b o � � at cu 0 4 4-4 44 •�� 0 a , 0 co 0 o o U w a O I H a w z — t 0 tizii o ' 0 P4 Pli a« b o 4•1 g .9 4.1 enO 0 0 0 0 0 0 0 o A o o 0 o 0 0 0 V) O uda� 3 Job Information 6-1/8" Plug To Abandon Well Name: Mustang Well#: 1 4" Drill Pipe 0-8929 ft(MD) Outer Diameter 4.000 in Inner Diameter 3.500 in Linear Weight 10.40 lbm/ft 6-1/8" Production Hole 9484-9929 ft(MD) Inner Diameter 6.125 in Job Excess 15 % 7" Intermediate Casing 0-9484 ft(MD) Outer Diameter 7.000 in Inner Diameter 6.276 in Linear Weight 26 lbm/ft Casing Grade L-80 3-1/2" Stinger 8929-9929 ft(MD) Outer Diameter 3.500 in Inner Diameter 2.992 in Linear Weight 9.30 lbm/ft Calculations 6-1/8" Plug To Abandon Mud: (8128.83 ft fill) 8128.83 ft* 0.2148 ft3/ft * 0% = 1746.31 ft3 Total Mud = 1014.39 ft3 = 180.67 bbl Spacer: 1155.17 ft* 0.2148 ft3/ft * 0% = 248.16 ft3 Total Spacer = 168.44 ft3 = 30.00 bbl Cement : (645.00 ft fill) 200.00 ft* 0.2148 ft3/ft* 0% = 42.97 ft3 --i c s 445.00 ft* 0.2046 ft3/ft * 15 % = 104.71 ft3 d Ff Plug Cement = 147.68 ft3 = 26.30 bbl Spacer: Total Spacer = 79.73 ft3 = 14.20 bbl Shoe Joint Volume: (0.00 ft fill) 0.00 ft* 0.0 ft3/ft = 0.00 ft3 = 6.12 bbl Tail plus shoe joint = 34.37 ft3 = 6.12 bbl Total Tail = 128 sks Total Pipe Capacity: = 114.95 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint = 114.95 bbl-6.12 bbl = 108.83 bbl Job Recommendation 6-1/8" Plug To Abandon Fluid Instructions Fluid 1: Mud Mud Fluid Density: 10.70 lbm/gal Volume Behind: 180.67 bbl Fluid 2: Water Spacer Water Spacer Fluid Density: 8.33 lbm/gal Fluid Volume: 30 bbl Fluid 3: Tail Cement Premium Cement Fluid Weight 15.80 lbm/gal 94 lbm/sk Premium Cement(Cement) Slurry Yield: 1.15 ft3/sk 0.2% CFR-3 (Dispersant) Total Mixing Fluid: 4.97 Gal/sk 0.4% SCR-100(Retarder) Top of Fluid: 9284 ft Calculated Fill: 645 ft Volume: 26.30 bbl Calculated Sacks: 128 sks Proposed Sacks: 128 sks Fluid 4: Water Spacer Water Displacement Fluid Density: 8.33 lbm/gal Fluid Volume: 14.20 bbl Fluid 5:Mud Mud Displacement Fluid Density: 10.70 lbm/gal Fluid Volume 94.63 bbl Job Procedure 6-1/8" Plug To Abandon Detailed Pumping Schedule Fluid# Fluid Fluid Name Surface Estimated Downhole Type Density Avg Rate Volume lbm/gal bbl/min 1 Mud Drilling Mud 10.7 5.0 180.67 bbl 2 Spacer Spacer 8.3 5.0 30 bbl 3 Cement Plug Cement 15.8 5.0 128 sks 4 Spacer Spacer 8.3 5.0 14.20 bbl 5 Mud Displacement Fluid 10.7 5.0 94.63 bbl Engineering Program Results 6-1/8" Plug To Abandon Design Parameters Fracture Zone Measured Depth 9929.0 ft Fracture Zone Gradient 0.779 psi/ft Fracture Zone Density 15.00 lb/gal Fracture Zone Pressure 4915 psi Reservoir Measured Depth 9929.0 ft Reservoir Pore Pressure 3178 psi Reservoir Zone Gradient 0.504 psi/ft Reservoir Zone Density 9.70 lb/gal Back Pressure 0 psi Simulator Volume Increment 1.00 bbl Virtual Shoe Track Length 0.0 ft Eccentricity Enhanced Calculations No Erodibility Enhanced Calculations No Use Coupling Information No Wellbore Orientation Measured Depth True Vertical Deviation Build Angle Azimuth Depth ft ft 0 °/(100*ft) ° 0.0 0.0 0.0 0.0 29.0 29.0 0.0 0.00 0.0 1400.0 1400.0 0.0 0.00 0.0 1650.0 1650.0 0.0 0.00 0.0 2495.0 2448.0 33.4 3.95 0.0 2514.0 2465.0 19.1 -75.32 0.0 3269.0 2989.0 69.3 6.66 0.0 8402.0 5517.8 51.4 -0.35 0.0 9604.0 6147.8 65.3 1.16 0.0 9929.0 6307.8 55.7 -2.95 0.0 Wellbore Geometry MD Hole Ex. Hole Dia. Casing OD Casing ID Casing Weight ft % in in in lb/ft 8929.0 0.00 6.276 4.000 3.500 9484.0 0.00 6.276 3.500 2.992 9.300 9929.0 15.00 6.568 3.500 2.992 9.300 HALLIBURTON Pumping Schedule No. Description Density Rate Volume Duration lb/gal bpm bbl min 1 25/20 Mud 10.70 5.00 0.00 0.00 2 Water 8.33 5.00 30.00 6.00 3 Primary Cement 15.80 5.00 26.30 5.26 4 Water 8.33 5.00 14.20 2.84 5 25/20 Mud 10.70 5.00 94.63 18.93 Total 165.13 33.03 Temperature Profile, Temperature Profile 1 Measured Depth Casing Circulating Annulus Circulating Temperature Temperature ft °F °F 0.0 32 97 9929.0 160 160 56 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Simulation Volume and Pressure Results Volume and Rate Calculations Time Surface Surface Liquid Total Liquid Rate Total Rate Stage In Stage Out Volume In Volume Out In Out min bbl bbl bpm bpm 0.02 2 1 0.08 0.08 5.00 5.00 2.00 2 1 10.00 10.00 5.00 5.00 4.00 2 1 20.00 20.00 5.00 5.00 6.00 2 1 30.00 30.00 5.00 5.00 7.80 3 1 39.00 39.00 5.00 5.00_ 9.80 3 1 49.00 49.00 5.00 5.00 11.40 4 1 57.00 57.00 5.00 5.00 13.40 4 1 67.00 67.00 5.00 5.00 15.00 5 1 75.00 75.00 5.00 5.00 17.00 5 1 85.00 85.00 5.00 5.00 19.00 5 1 95.00 95.00 5.00 5.00 21.00 5 1 105.00 105.00 5.00 5.00 23.00 5 1 115.00 115.00 5.00 5.00 25.00 5 1 125.00 125.00 5.00 5.00 27.00 5 1 135.00 135.00 5.00 5.00 29.00 5 1 145.00 145.00 5.00 5.00 31.00 5 1 155.00 155.00 5.00 5.00 33.03 5 1 165.13 165.13 5.00 5.00 57 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Horsepower, Pressure, Freefall Time Liquid Pump Surface Surface ECD @ ECD @ Free Fall Volume In Output Pressure Pressure TD Frac Zone Height In Out min bbl hp psi psi lb/gal lb/gal ft 0.02 0.08 118.0 948 0 12.27 12.27 0.0 2.00 10.00 127.9 1029 0 12.27 12.27 0.0 4.00 20.00 137.9 1111 0 12.27 12.27 0.0 6.00 30.00 147.11186 0 12.27 12.27 0.0 7.80 39.00 121.4 976 0 12.27 12.27 0.0 9.80 _ 49.00 89.0 712 0 12.27 12.27 0.0 11.40 57.00 66.8 530 0 12.27 12.27 0.0 13.40 67.00 78.1 623 0 12.27 12.27 0.0 15.00 75.00 96.3 772 0 12.27 12.27 0.0 17.00 85.00 112.8 906 0 12.27 12.27 0.0 19.00 95.00 118.6 953 0 12.27 12.27 0.0 21.00 105.00 110.5 887 0 12.27 12.27 0.0 23.00 115.00 104.4 838 0 12.27 12.27 0.0 25.00 125.00 94.0 753 0 12.18 12.18 0.0 27.00 135.00 83.7 668 0 12.08 12.08 0.0 29.00 145.00 81.5 651 0 11.96 11.96 0.0 31.00 155.00 99.2 795 0 12.05 12.05 0.0 33.03 165.13 115.1 925 0 12.17 12.17 0.0 Gas Flow Potential Gas Flow Potential 1.22 at Reservoir Zone Measured Depth 9929.0 ft Based on analysis of the above outlined well conditions,this well is considered to have a MINOR gas flow potential. Wells in this category fall into flow condition 1. Pressure to Break Circulation - Hydrostatic Pressures Total Depth 3506 psi Fracture Zone 3506 psi Pressure to Break Circulation Gel Strength Surface Pressure Total Depth Additional Fracture Zone Pressure Additional Pressure I bf/(1 00*ft2) psi psi psi 25.00 596 356 356 50.00 1192 711 711 75.00 1788 1067 1067 100.00 2384 1423 1423 200.00 4769 2845 2845 58 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) HALLIBURTON Final Position of Stages Stage Description Annular Casing Annular Casing Length Length Top MD Top MD ft ft ft ft 25/20 Mud 7952.1 0.0 Water 1273.0 7952.1 Primary Cement 703.9 703.9 9225.1 9225.1 Water 1273.0 7952.1 25/20 Mud 7952.1 0.0 Time of Events Time Frac Res Stage Starts Pumping Stage Enters Annulus Zone Zone ECD ECD mire lb/gal lb/gal 0.02 12.27 12.27 2. Water 6.02 12.27 12.27 3. Primary Cement 11.27 12.27 12.27 4. Water 14.12 12.27 12.27 5. 25/20 Mud 23.00 12.27 12.27 2. Water 29.00 11.96 11.96 3. Primary Cement 33.02 12.17 12.17 End of job 59 Created: December 21,2011 at 4:12 PM OptiCem v6.4.10(OC v6.4.10) • o '5 o Q. r. ^ vi N Lir >.. �• U N A 0 0 pros = c 0 it a,, N O'Nai T rc 0- 'v N v rr I N w � a) nE U 7, N r: O Fi cri a) IiiU 0 00 N o I N A Z PO iii :15 al - .. ti W •� 1 s. 0 II s. N 2 O Udo O 0 .8" . N u b 0W II 11.11111111..1.11 x 1 4 F. a 1 eW tt co g � � `� ti„i o � E- .o " 01 .^ ; o 3 w -ter 1 M o . Q)) a I i I r 1 T , � -00 is m J 0 0 0 0 0 0 o A V 0 00 0 ON y Q a - U3 I Q c�>u � o •--• 7h N^ ,.p Z)O 4 UA o 0 0 "v N N c i N U a) N t, Ca 0 o m ; CI) VA U O N o r A Q N 0b MI ° � U 0 gp 0 _ \--1 o = ty U H CClo O O W p 01) o 0 b� o0 c Ii-4 uao Ix H Po 4 I a : 0 , ZCA i � � 0 o '1.) o .5PO :a O a 6 ei c4 .! N E q ,� O N --, N VD N VD M VD M 41 O (J)GAL U I A ( )a2i o,/ 10 1• N O o0 1/41D 0 V V1 V1 Vi V1 4 Ti 1- E I L_ 1 , 1 1 _I UA (ice°IngKlicl i Tiiia11c1 0- 0 0 0 14 N OO O O O O .-i ,— C 00 S "0 Vl ii < � I � ��.1. , _1. _� i_ _ l 1 N -06- 6"O 1tum I vl 0 1 a� _N A 4 of - ti iio o 0v) o a iH 71 w-.4 4"Ill NI _ a. o0 $•ZI m e__ . 0 v rataratN CG t 1 o cu 1 1 I I I 0 o A c (lg,li)Tif i1Tsu P?TTT3`GAL IT LO£9 lg CM V) Conditions VI 1 NOTE The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30 days from the date of this proposal. In order to meet your needs under this proposal with a high quality of service and responsive timing, Halliburton will be allocating limited resources and committing valuable equipment and materials to your area of operations. Accordingly, the discounts reflected in this proposal are available only for materials and services awarded on a first-call basis. Alternate pricing may apply in the event that Halliburton is awarded work on any basis other than as a first-call provider. The unit prices stated in the proposal are based on our current published prices. The projected equipment, personnel, and material needs are only estimates based on information about the work presently available to us. At the time the work is actually performed, conditions then existing may require an increase or decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the time the work is performed and the amount of equipment,personnel, and/or material actually utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual invoice. It is understood and agreed between the parties that with the exception of the subject discounts,all services performed and equipment and materials sold are provided subject to Halliburton's General Terms and Conditions contained in our current price list,(which include LIMITATION OF LIABILITY and WARRANTY provisions),and pursuant to the applicable Halliburton Work Order Contract(whether or not executed by you),unless a Master Service and/or Sales Contract applicable to the services,equipment, or materials supplied exists between your company and Halliburton,in which case the negotiated Master Contract shall govern the relationship between the parties. A copy of the latest version of our General Terms and Conditions is available from your Halliburton representative or at: http://www.halliburton.com/terms for your convenient review,and we would appreciate receiving any questions you may have about them. Should your company be interested in negotiating a Master Contract with Halliburton,our Law Department would be pleased to work with you to finalize a mutually agreeable contract. In this connection,it is also understood and agreed that Customer will continue to execute Halliburton usual field work orders and/or tickets customarily required by Halliburton in connection with the furnishing of said services,equipment,and materials. Any terms and conditions contained in purchase orders or other documents issued by the customer shall be of no effect except to confirm the type and quantity of services, equipment, and materials to be supplied to the customer. If customer does not have an approved open account with Halliburton or a mutually executed written contract with Halliburton, which dictates payment terms different than those set forth in this clause, all sums due are payable in cash at the time of performance of services or delivery of equipment,products,or materials. If customer has an approved open account,invoices are payable on the twentieth day after date of invoice. Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest lawful contract rate applicable,but never to exceed 18%per annum. In the event Halliburton employs an attorney for collection of any account,customer agrees to pay attorney fees of 20%of the unpaid account, plus all collection and court costs. Page 1 of 2 F N Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Thursday, January 19, 2012 12:07 PM To: 'Larry Vendl' Cc: Tom Habermann; Bo Darrah; Bart Armfield; Larry J. Smith Subject: RE: AOGCC request to clarify the Kuparuk drillng procedures on Mustang#1 (PTD 211-174) Larry, This is certainly acceptable. I agree with your approach to penetrating the target and your contingencies to handle any well control issues. This will document the learning's from Tarn 1A are incorporated into drilling Mustang 1. I don't have any more questions so the PTD will be finalized shortly. I will add this email to the well file. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Larry Vendl [mailto:lvendl@brpcak.com] Sent: Thursday, January 19, 2012 11:58 AM To: Schwartz, Guy L(DOA) Cc: Tom Habermann; Bo Darrah; Bait Armfield; Larry J. Smith Subject: AOGCC request to clarify the Kuparuk driling procedures on Mustang #1 as a part of the permit-to-drill Guy, as part of the final information needed for the Mustang#1 PTD, you ask for a description of how we intend to drill the "C" sand and then the "A" section in the light of our experience with overpressure in NT#1A in the Kuparuk C and the shales and silts of the Kuparuk"A". Here is some clarification on this to include in the general procedures. I suggest we submit something similar to the following for the permit: • Stop drilling a short distance, a few feet, above the Kuparuk"C" target according to the wellsite Geologist's direction and circulate bottoms up. Stabilize the mud column at 12.1 ppg in and out. • Drill ahead in short increments of 3 to 5 feet through the lower Kalubik and the Kuparuk"C" at a 12.1 ppg mud weight as per geologist direction. • Conduct numerous bottoms-up circulations in the Kalubik,the Kuparu "C", and the Kuparuk "A" zones to circulate out any hydrocarbons and examine cuttings and stabilize the mud system at the base of each drilled interval. The hole will be at an inclination of approximately 60 degrees. • Be prepared to pump LCM in case of losses, and be prepared to increase mud weight to control any overpressure that is encountered in the "C" sands or underlying shale. • Expect some hole breathing to occur due to induced ECD while drilling, and expect some flowback on connections as part of the well breathing. • Drill the rathole below the pay interval,as seen on LWD logs far enough to obtain a complete GR/Resisitivity log over the pay interval (s) as per wellsite geologist direction • When the base of pay is seen on logs the well will be at TD. • If the hole is stable, a drill pipe conveyed LWD Density/Neutron log will be run to gather 1/19/2012 Page 2 of 2 > ` • formation porosity data. • Following logging proceed with plug back to 7" casing. Suspend well and move to next location. Guy, see how this feels to you. I know we do not engineer-out the issue of pressure,that is probably not feasible, but we mitigate to the point of a safe operation. I hope this is sufficient for our permit with the AOGCC. Please let me know how you would like to proceed. The well is likely going to be ready to spud next week as we are coming to conclusion on testing the NT#1A well this weekend. L J V Vice President, Exploration Brooks Range Petroleum Corporation,Alaska Direct Office: 907-865-5811 General Office: 907-339-9965 Cell: 907-223-6837 Home: 907-274-4781 1/19/2012 Page 1 of 2 OS * .a. Schwartz, Guy L (DOA) From: Larry Vendl [Ivendl@brpcak.com] Sent: Friday, January 13, 2012 3:22 PM To: Schwartz, Guy L (DOA) OP Zit—1/ L1 Cc: Tom Habermann; Bart Armfield Subject: RE: Mustang#1 Drilling Procedure and MASP calculation updates Will do. Guy, as per our phone conversation this afternoon, I will converse with Bart and our drillers to recap how we will approach establishing a suitable mud weight and drilling procedure for penetrating and drilling the "A" sand and the underlying shales and silts in Mustang#1. We will be updating the Mustang 2 PTD submittal, and will get that to you next week. Liner is down and cemented, and we will be gearing up for the completion and testing soon. UV From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Friday, January 13, 2012 2:58 PM To: Larry Vendl Cc: Tom Habermann; Bart Armfield Subject: RE: Mustang #1 Drilling Procedure and MASP calculation updates Larry, The final version has the level of detail we require now for approval. We are asking for Initial BOP configuration, Min LOT/FIT values, Scheduled Ram changeouts and many other things from all the operators now. Please use this one as a " Go By"for future PTD applications. Hope the testing on Tarn 1A is going well. Good luck! Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Larry Vendl f mailto:lvendlObrpcak.com1 Sent: Friday, January 13, 2012 2:47 PM To: Schwartz, Guy L (DOA) Cc: Tom Habermann; Bart Armfield Subject: RE: Mustang #1 Drilling Procedure and MASP calculation updates Sounds great to me, Guy. Just let us know if you need anything further from our end of the court. UV From: Schwartz, Guy L(DOA) f mailto:quy.schwartz©alaska.gov1 Sent: Friday, January 13, 2012 2:16 PM To: Larry Vendl 1/13/2012 Page 2 of 2 IN.. Cc: Tom Habermann; Bart Armfield Subject: RE: Mustang #1 Drilling Procedure and MASP calculation updates Larry, I reviewed the documents and they are acceptable. I can make copies here if there are no other changes and insert them into each of the PTD applications. I can also change the PTD application box#17 to the new values as shown in your MASP calculations. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Larry Vend! fmailto:lvendl@brpcak.coml Sent: Friday, January 13, 2012 1:51 PM To: Schwartz, Guy L(DOA) Cc: Tom Habermann; Bart Armfield Subject: Mustang #1 Drilling Procedure and MASP calculation updates Guy, Attached above are the changes to the Mustang#1 general drilling procedure, as per your request. The changes are listed in red in response to your questions from earlier in the week. Also attached is a set of new MASP calculations. If these are acceptable, we will send you a final version of the procedures and calcs as an addendum to the original PTD submittal. I do not think any of the attachments have changed. Don't hesitate to call with any questions you may have. L J V Vice President, Exploration Brooks Range Petroleum Corporation,Alaska Direct Office: 907-865-5811 General Office: 907-339-9965 Cell: 907-223-6837 Home: 907-274-4781 1/13/2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, January 13, 2012 2:16 PM To: 'Larry Vendl' Cc: Tom Habermann; Bart Armfield Subject: RE: Mustang#1 Drilling Procedure and MASP calculation updates Larry, I reviewed the documents and they are acceptable. I can make copies here if there are no other changes and insert them into each of the PTD applications. I can also change the PTD application box#17 to the new values as shown in your MASP calculations. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Larry Vendl [mailto:Ivendl@brpcak.com] Sent: Friday, January 13, 2012 1:51 PM To: Schwartz, Guy L (DOA) Cc: Tom Habermann; Bait Armfield Subject: Mustang #1 Drilling Procedure and MASP calculation updates Guy, Attached above are the changes to the Mustang#1 general drilling procedure,as per your request. The changes are listed in red in response to your questions from earlier in the week. Also attached is a set of new MASP calculations. If these are acceptable, we will send you a final version of the procedures and calcs as an addendum to the original PTD submittal. I do not think any of the attachments have changed. Don't hesitate to call with any questions you may have. L J V Vice President, Exploration Brooks Range Petroleum Corporation,Alaska Direct Office: 907-865-5811 General Office: 907-339-9965 Cell: 907-223-6837 Home: 907-274-4781 1/13/2012 Page 1 of 2 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, January 10, 2012 2:08 PM To: 'Bart Armfield' Cc: Larry Vendl Subject: RE: Tarn 1A BOP incident and Mustang 1 BHP ( PTD 211-174) update Bart, OK, I have several comments and questions on the procedure too. The General Drilling Program has some missing information that I need to approve the permit. 1) Can you give me the initial BOP configuration as in what pipe rams sizes will placed in each ram body for the first BOP test on step 22. 2)What is your min acceptable LOT for the surface casing shoe(step 25)taking into account ECD and mud weight. ? 3) On step 30 you don't mention testing the 7" rams for running casing. 4) What is the min acceptable LOT(FIT) after you drill out the 7"shoe track and 20' of formation (step 32) ? ( Looks like you are running a ES cementer at 6600' so you will have to drill that out before you pressure test the casing. ) 5) A separate sundry will be required to P &A the OH section and suspend the well. So at step 35 you will need to submit a 10-403 with a detailed program for plugging and leaving the well buttoned up. 6)As we discussed an updated MASP calculation and mud program changes. 7)Verify that a safety jt and crossover with FOSV is ready when running casing. Thanks, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Bart Armfield [mailto:barmfield@brpcak.com] Sent:Tuesday, January 10, 2012 1:22 PM To: Schwartz, Guy L (DOA) Cc: Regg, James B (DOA); Larry Vendl Subject: RE: Tarn 1A BOP incident and Mustang 1 BHP ( PTD 211-174) update Guy, I have sent a note to the rig, requesting them to forward their notice email. I will work with Larry V this afternoon with regard to the BHP and Mud program changes for Mustang #1. Will get with you as soon as we can. 1/10/2012 Page 2 of 2 Bart From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Tuesday,January 10, 2012 11:57 AM To: Bart Armfield Cc: Regg, James B (DOA) Subject: Tarn 1A BOP incident and Mustang 1 BHP ( PTD 211-174) update Bart, I checked with Jim Regg and he has not gotten a written BOP incident report for Tarn 1A . Can you have the rig resend the email or report as soon as possible per bulletin No. 10-03. Additionally, as we discussed the BHP (MASP)for Mustang 1 will need to be updated based on the BHP you saw on Tarn 1A and the fact that it is even closer to the CPAI injection wells. Can you send me an email updating your BHP forecast for Mustang 1 as soon as you can as well as any mud program changes. I am reviewing the PTD application for Mustang 1 (PTD 211-174) today. Here is a link to the rest of our Guidance Bulletins. http://www.doa.alaska.qov/oqc/bulletins/bulletindex.html Please send this link to the rig supervisor and make sure they are familiar with the content. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 1/10/2012 Page 1 of 1 Schwartz, Guy L (DOA) From: Bart Armfield [barmfield@brpcak.com] Sent: Tuesday, January 10, 2012 2:46 PM To: Schwartz, Guy L(DOA); DOA AOGCC Prudhoe Bay; Regg, James B (DOA) Cc: BRPC Rig Supervisor; Bo Darrah; Hebert, Daniel; Larry Vendl Subject: BOPE use on Nabors 7 ES 01/07/2012 Guy, Per your note and conversation, please accept this note a written notification of BOPE use on Nabors 7 ES this past weekend. Per the Guidance Bulletin No. 10-003 the following will provide details as specified within guidelines; Date : 01/08/2012/ Time : 0130 Well : N Tarn#1A, on ADL 390680, PTD—211-051 Rig Name : Nabors 7ES Operator Contact : Brooks Range Petroleum Corp./Larry Vendl Per planned drilling operations,and as the well reached a depth to penetrate the Kup"A" sand section in the well,the rig experienced an increase of 5 bbls to pit volume. The rams were closed to divert flow through the choke manifold as the mud was conditioned to increase EMW from 10.7 ppg to 11.0 ppg. BOPE used : Hydril 13 5/8"x 5,000 psi annular preventer Current plan is to stabilize wellbore and clean out to TD POOH and perform BOPE test on the 13 5/8"x 5,000 psi annular preventer. Bart Armfield Chief Operating Officer Brooks Range Petroleum Corporation 510 L Street,Suite 601 Anchorage,Alaska 99501 direct-907-865-5840 cell-907-980-2483 1/10/2012 Davies, Stephen F (DOA) From: Larry Vendl [Ivendl@brpcak.com] Sent: Wednesday, January 04, 2012 3:29 PM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Correction to Mustang#1 PTD cover page. You are correct, Steve. The BHL for Mustang 1 is in Section 1, 10N, 7E. My mistake. We will get you a signed original for the documents. Thanks, UV From: Davies, Stephen F (DOA) [mailto:steve.davies(aalaska.gov] Sent: Wednesday, January 04, 2012 2:18 PM To: Larry Vendl Cc: Schwartz, Guy L(DOA) Subject: RE: Correction to Mustang #1 PTD cover page. Larry, Please provide signed, original documents for AOGCC's files. Could you please check the bottom-hole coordinates for the well? I uploaded Brooks Range's proposed directional survey coordinates into my workstation and the Mustang 1 bottom-hole location plots in Section 1 of T10N, R7E, UM, not in Section 36,T11N, R7E as stated in Box 4a of the Permit to Drill Application form. Also, Section 36,T11N, R7E lies in lease ADL 390691. The only lease referenced in Box 7 of the application form is ADL 390680. Thanks, Steve Davies AOGCC From: Larry Vendl jmailto:lvendk brpcak.com1 Sent: Wednesday, January 04, 2012 12:35 PM To: Schwartz, Guy L (DOA) Cc: Bart Armfield Subject: Correction to Mustang #1 PTD cover page. Guy, I found that the permit for Mustang 1,which we submitted last week has a discrepancy on the cover page in section 4A. Location of Well. We shifted the location of the conductor to optimize close approaches with other wells in the subsurface and failed to make that change on the permit. Below is an updated cover page. Do you need Bart's original signature? If so,we can walk it over to you. The corrected coordinates are shown below. I also changed the legal reference to be from the south line to be consistent with the coordinates provided on the as-built. The previous version referenced the distance FNL. 1 Just let me know how to proceed. 2 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL MC 25,445 _ 1a.Type of Work: lb.Proposed Well Class: Development-Oft 1 j Service- WMr1 ❑ Single Zone 0 1c.Specify If eel la pi Drill 0 Redl ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone 0 Coalbed Gas ❑ Ga Re-entry ❑ _ Exploratory 0 Service• WAG 0 Service-D3isp ❑ Sh 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Ni Brooks Range Petroleum Corporation Bond No. LPM 8842179 Mustat 3,Address: 6.Proposed Depth: 12.Field/Pool(s): 510 L Street,Sults 601.Anchorage,Ah(.99601 MD: 9929 TVD: 6308 4a, Location of Wel(Governmental Section): 7.Property Designation(Lease Number): Explore Surface: 2426 FSL 1686 FEL 52 T10N R7E UM ADL 390699 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud 1754 FSL 715 FEL Si T10N R7E UM LAS 27503 JatI 2O-: Total Depth: 9.Acres in Property. 14.Distance to Neare 1901 FSL tt14 FEL 336 TI1N R7E UM 2560 634 4b. Location of warn(Slate Base Plana COordirrr te4-NAD 27): 10, K9 Elevation above MSL: 90 feel 13,Distance to New; Surface: x-465312.5 y- 5940809.97 Zone-4 GL Elevation above PASL: 89.3 feet to Same Pool: NIA 1a,Deviated wells: Kickoff depth: 500 feet -1T. Maximum Anticipated Pressures In psig(see 2—AAC 25.035) Maximum Hole Angle: 61 degrees Downhala: 5347 prii Surface: 2879 psi 15.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity Hole Casing Weight Grade Coupling Length MD TVO MD TVD (including sti 24' 201'894" WA WA Welded 80' 0' 06 _ 107 107 140 o f arctic gr 12.25- 9-5,ir 408 L-80 BTC 2,495 0' 0' 2495 2,448 Cmtd to surf v 6.6" 7' 264 L-80 BTC-M 9,484 0' 0' 1 9.484 6,063 Cmtd to 4000'Mi 8.125" WA NIA NWA N(A WA NIA NIA . NIA N/A , r i 19. PRESENT WELL CONDITION SL IMARY(To be completed for Redrlil and Re-Entry Operations) Total Depth MD(ft): Total Depth,TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect Depth WO(ft): Ju Casing Length Strut Cement Volume MD Candueto4 Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(R): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v.Depth Plot 0 Shallow Ha Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Bart Armileld Tills Chief Operating Officer Signature Phone 907.339-9965 Date Commission UN Only Permit to Drill API Number: Permit Approval See cover letter for oil Number. 50- Date: requirements. Conditions of approval: If box ib checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates.or gas contained Other: Samples req'd: Yes❑ No 0 Mud log req'd: Ye I-42S measures: Yes 0 No 0 Directional avy req'd: Ye Regards, L J V Vice President, Exploration Brooks Range Petroleum Corporation, Alaska Direct Office: 907-865-5811 General Office: 907-339-9965 Cell: 907-223-6837 Home: 907-274-4781 4 I • r • k i O Z V/ CO Cl) L F- 0- 2 5V L ^X W ,P I z Q 1 0 TRANSMITTAL LETTER CHECKLIST WELL NAME /(46_}( / 6 PTD# 2—/ C 17 Development Service Exploratory Stratigraphic Test Non-Convention 1 Well FIELD: --y.,C /4-1:j POOL: Check Box for 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 ( 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 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 DITCHLZ 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:9/09/2011 U) J a Xi C C C_ N 6 _ � to � a) m o rn a. . o, o' o c $ -C E, a> O 0 0 3' 0 -° V CO II 3 d CO C , , , , c00 -ac c �, o o o . v. co' N 'O: CN O : : : . ... a w a a C. „ a , C. 'a =p. o y' 0. a) y. a C •0�. C a a. o a. O. a) (NJ C O 3. N: . C, -E c0 CZ C - la Oof N. C= 'C. N. M. '67) -q Y C 3. U C Q 0 . 0. D. . . v. - a w 5 . O), co N - y W c a. (/) �' E Z . Q. cc' 0. . . '-, U `. C. �. 03 C. C. O' (0 O t. E z' U F c -• Co Q, . �, i, a; 0, �', 2,, t; E, Z y. Q, ? 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't as o 049 . 0. ° m c CO cz, a, 1, D, 355; co .= 00a_ a_cD c.) , da`, 0, con � 00; 0<"-7Q �' 0th, m; -1:, 5 in-', a 0cn, in; 0 ,' o w as O' N M 7 C() CO 00 O) O ,- N M V CO CO I� co O> O .- N M LO CO Is- 00 O) I E • N M a O r 00 W � .- r N N N CV CV N N N N N M M M M M M M M M M I U N E d No d d c G O C va p 16 N CC (:) U a ce V O 0 co m O ro O C W c- R C - C d - m E/ J N •5 a) corn C7 o i'� J Lij o E °- o 'o) ° Cr) o a a v 5. a s Q �> w` Q c� C7 Q U> Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. HALLIBURTON Sperry Drilling Surface Data Logging End of Well Report Mustang 1 Client: Brooks Range Petroleum Field: North Tarn Rig: Nabors 7ES Date: February 23rd, 2012 a III 110 1 .-I jliw 1d �. , 4 . • , r . _'� g ^ moi`: f j �� 4 f ter ,+ A y ," 1 ,', 1 , c K` .' • 1 x HALLIBURTON I Sperry Drilling TABLE OF CONTENTS 1. General Information 2. Daily Summary 3. Morning Reports 4. Bit Record 5. Mud Record 6. Formation Tops 7. Survey Report 8. Days vs. Depth Digital Data to include: Final Logs Halliburton Log Viewer EMF Log Viewer EOW Report PDF Version ADI File ./t ",/\/S6. 11.00.E._11.11111111111114 Brooks Range Petroleum Corporation HALLIBURTON f Sperry Drilling GENERAL WELL INFORMATION Company: Brooks Range Petroleum Corporation Rig: Nabors 7ES Well: Mustang 1 Field: North Tarn Borough: North Slope Borough State: Alaska Country: United States API Number: 50-103-20652-00-00 Sperry Job Number: AK-AM-9113843 Job Start Date: 1 Feb 2012 Spud Date: 2 Feb 2012 Total Depth: 9315' MD, 6170' TVD SDL Release Date: 23 Feb 2012 North Reference: True Declination: 20.44° Dip Angle: 80.818° Total Field Strength: 57615 nT Date Of Magnetic Data: 31 Jan 2012 Wellhead Coordinates N: North 70° 14' 57.47" Wellhead Coordinates W: West 150° 16' 48.86" Drill Floor Elevation 100.80' Ground Elevation: 72.30' Permanent Datum: Mean Sea Level SDL Engineers: Craig Amos, Jessica Munsell SDL Sample Catchers: Leigh Ann Rasher, Martin Nnaji, Angelina Lund, Alisha Graham, Chris Woolley Company Geologist: Larry Vendl Company Representatives: Bill Bixby, Dan Shearer, Larry Myers SSDS Unit Number: 121 /**,/\N, Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling DAILY SUMMARY 01/31/2012 SDL continues on location from previous well. Spot and set MWD and mudlogging shacks. Wait on the unit to warm up before rigging up. Pipe shed was loaded with drill pipe and heavy weight drill pipe. Began rigging up CVE, Legacy gas trap, and ran gas line to the unit. Rigged up network connection with MWD and WITS to Canrig. 02/01/2012 Finished rigging up unit. Troubleshoot and set up computers and gas equipment. Continued to troubleshoot network and Canrig connections. Corrected Canrig issues within Insite but continued to have issues with the network. Calibrated the 8800 gas analyzer and 8900 gas chromatograph. Tested diverter and accumulators. Picked up drill pipe and made up BHA. Rig operations delayed due to cold weather. 02/02/2012 Continued to wait on the weather. Spud well at 10 am with MI Swaco Spud Mud. Drilled to 191' MD. Pulled out of the hole and blew down top drive and picked up the rest of the BHA. Continued drilling to 700' MD. Circulated and conditioned hole. Conflicting computer IP addresses caused information to stop writing to the database. Drilling stopped until the issue was solved, minimal data was lost. The problem was solved by getting new IP addresses from town. Geology: Samples were coarse grained sandstone with a small percentage of siltstone. Gas: Gas was low until around 1000' MD and began then began to rise to a background gas average of 20 units. Fluids: No loses seen whilst drilling. 02/03/2012 Continued to drill ahead to 1566' MD. Made a short trip while back reaming out of the hole to 650' MD. Large amounts of cuttings were seen at the shakers. Circulated and conditioned the hole. Ran in the hole to 900' MD and worked area. Continued down to bottom and drilled ahead. Geology: The samples were a combination of medium grained, dark gray sandstone and medium gray silty claystone. Gas: The max gas was 356 units at 2793' MD and the average background gas was 84 units. Fluids: No Losses seen whilst drilling. 02/04/2012 Troubleshoot gas equipment. A drop in air pressure caused the flame to go out on the gas analyzer and chromatograph. A small amount of gas data was lost while they were being relit. The leak was located and fixed. Continued to drill ahead to 3082' MD TD at 6.25 am. Circulated and conditioned hole clean. Back reamed out of the hole to 1500' MD. Tripped in the hole to 3082' MD and circulated bottoms up two times. Pulled out of the hole. Laid down BHA and monitored the well. Geology: Predominantly clay, turning to claystone around 2800', light to medium grey in color and soft to firm in hardness, grading to Siltstone in places. Gas: The max gas was 356 units at 2565' MD with an average background gas of 127 units. Fluids: No Losses seen whilst drilling. /\,AIS/\, Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling 02/05/2012 Rigged up and ran 9 5/8" casing to 3069' MD. Circulated and conditioned with casing on bottom. Rigged up cement equipment. Pumped cement. Bump plug with 9.6 ppg spud mud, 190 barrels of cement returned back to surface. Rigged down cement equipment. Cleaned rig floor and pits. Geology: No geology Gas: A max trip gas of 125 units was noted. Fluids: No losses seen. 02/06/2012 Continued cleaning all pits of water based mud and emptied cuttings box. Nippled down diverter lines. Nippled up and tested BOPs. Rigged down test equipment. Began picking up 5" drill pipe. Geology: No geology Gas: No gas data. Fluids: No losses seen. 02/07/2012 Continued to pick up 5" drill pipe. Picked up BHA including 8.5" PDC Hughes QD505X, 7" SperryDrill Lobe 7/8—6.0 stg Mud Motor(0.33 revolutions per gallon), 6 3 DM, DGR, EWR and PWD. Successfully shallow pulse test BHA and began running in with 5" DP. Pressure tested casing to 3500 psi for 30 minutes. Slipped and cut drill line and serviced top drive. Drilled out shoe and 20 feet of new formation. Circulated and conditioned hole. Displaced mud and ran LOT to 15.9 ppg test. Drilled ahead. Geology: Samples have been predominantly light to medium gray, non calcareous, firm to soft, siltstone with a small percentage of shale and sandstone. Gas: The max gas was 24 units at 3576' MD and the average background gas was 9 units. Fluids: No losses seen. 02/08/2012 Continued to drill ahead. At 4804' MD a wiper trip was made. Pulled out of the hole to the shoe and then tripped back into the hole and continued drilling. It was noted that gas seemed lower than it should be and it was decided to switch to the Legacy gas trap system. Gas immediately rose from 1-10 units to 115-130 units. The Legacy gas trap was used until around 18:00, after working on figuring out why the CVE gas system was not working. It was thought that a hose was blocked with clay. We then switched back to the CVE gas system. Gas stayed in the range of 130-160 units, and then slowly declined throughout the night to around 15 units. Geology: The samples have been medium to light gray, firm to hard siltstone with trace amounts of very fine, light gray to white, sandstone. Gas: The max gas was 173 units at 5464' MD and the average background gas was 67 units. Fluids: No abnormal connections seen. The average time to get returns is 4-5 minutes and the average return is 8-12 barrels. No losses seen. 02/09/2012 At 02:00 it was decided to switch back to the Legacy gas trap system again. Gas immediately rose to 80-90 units. Continued to drill ahead. Increased mud weight to 9.8 ppg after background gas rose to 260 units at around 6500' MD. No noticed losses through the Torok zone. Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling Geology: The samples have been light white gray, very fine to fine grained sandstone with a small percentage of siltstone. The samples have recently changed to medium gray, soft to firm siltstone with a percentage of silty clay mixture. Gas: The max gas was 1044 units at 6922' MD and the average background gas was 218 units. Fluids: No abnormal connections seen. The average time to get returns is 4-5 minutes and the average return is 8-11 barrels. No losses seen 02/10/2012 Continued to drill ahead. The Legacy gas trap system is still in use. Having some issues with the gas line freezing but minimal gas data lost due to this issue. Geology: The samples have been predominantly dark gray, firm, non calcareous siltstone with a small percentage of silty clay mixture. Gas: The max gas was 2382 units at 7681' MD and the average background gas was 262 units. Fluids: No abnormal connections seen. The average time to get returns is 5-6 minutes and the average return is 8-13 barrels. No losses seen. 02/11/2012 Drilled ahead to 8392' MD. Circulated and conditioned hole clean with a high vis sweep to clean BHA. Fair amount of returns seen at shakers. Began pulling out of the hole for wiper trip, circulating after each stand for the first three stands and then continued pulling out on the eievators to 4678' MD. While pulling out of the hole the surface system will be weighted up to 10.3 ppg. During the day the air compressor over heated. A back up compressor was on location and was immediately plugged in. The 8800 Gas Analyzer lit right away and minimal gas data was lost. The 8900 Gas Chromatograph would not relight. A back up 8900 was on location and it began working soon after it was installed. About 60 feet of chromatograph data was lost during the change out. Tripped back in the hole and continued drilling. Increased the mud weight to 10.7 ppg with spike fluid. Drilled to 8672' MD before mud pump#1 went down. Back reamed out of the hole while mud pump is being repaired. Geology: The samples before back reaming out of the hole were medium gray, moderately hard, blocky claystone with siltstone in part. Gas: The max gas was 574 units at 8672' MD and the average background gas was 201 units. Fluids: No abnormal connections seen. The average time to get returns is 5-7 minutes and the average return is 6-8 barrels. No losses seen. 02/12/2012 Continued to back ream out of the hole to 6624' MD, while mud pump#1 was being repaired. Began running in the hole after the mud pump was repaired. Tested mud pump after repair completed. Then tripped back to bottom and continued drilling ahead to 9120' MD TD. Circulated and conditioned with 3 sweeps. Cuttings reduced at shakers after each sweep surfaced. Gas increased to 7434 units so mud weight was increased to 10.8ppg. After gas controlled and hole conditioned began pulling out of the hole. Geology: The samples at TD were dark grey to black, hard, non calcareous siltstone. Gas: The max gas while drilling was 1441 units at 8811' MD and the average background gas was 518 units. The max gas after circulating bottoms up was 7434 units Fluids: No losses seen. / °,/\N Brooks Range Petroleum Corporation HALLIBURTON I Sperry Drilling 02/13/2012 Continued to pull out of the hole. Laid down BHA. Rigged up for casing. Began running in the hole with 7' casing. Geology: No geology. Gas: No gas data. Fluids: No losses seen. 02/14/2012 Continued to run in the hole with 7' casing. Landed casing at 9109' MD. Rigged up for cementing. Pressure tested float and casing. No returns while pumping cement. There were partial returns while displacing the cement. Rigged down cement tools. Rigged up and tested BOPs. Cleaned pits for new mud system. Geology: No geology. Gas: No gas data. Fluids: No losses seen 02/15/2012 Continued cleaning pits. Laid down 5" drill pipe out of mouse hole. Freeze protected annulus and pressure tested. Rigged down hot oil and began to pick up 4" drill pipe. Emptied pit#3 of water brought into make fluid. Geology: No geology. Gas: No gas data. Fluids: No losses seen. 02/16/2012 Continued to pick up 4" drill pipe to 945' and rack back drill pipe. Pick up BHA and shallow test MWD tools. Continued running in the hole with 4" drill pipe, filling pipe every 30 stands. Geology: No geology. Gas: No gas data. Fluids: No losses seen. 02/17/2012 Continued running in the hole with 4" drill pipe, filling pipe every 30 stands. After picking up singles to 8755' MD, cut and slip drill line, serviced top drive and re-set block height. Continued running in the hole with 4" drill pipe to bottom. Drilled out float collar and cement before displacing with 12.9 ppg Flor-Pro. Drilled out shoe with new system and about 15 feet of new hole. Performed LOT to 16.6 ppg. Continued to drill ahead to 9172' MD, where we encountered a drilling break. Circulated bottoms up sample, which was sandstone. Drilled ahead 10 feet at a time, circulating after each 10 feet for bottoms up samples. Toward the end of the night, the battery backup system died, causing all the computers and gas equipment to power down completely. The company man was notified immediately. The computers and gas equipment were turned on as quickly as possible. About 10 minutes of data was lost. At the time we were circulating bottoms up so major drilling data was lost. Geology: Bottoms up sample at 9172' MD: transparent, white, medium to fine grained, unconsolidated, very calcareous sandstone with trace amounts of glauconite. SHOW: faint even green fluorescence, none streaming, faint green cut. Gas: The max gas was 482 units at 9191' MD and the average background gas was 176 units. /S,A*N _ Brooks Range Petroleum Corporation HALLIBURTON ! - perry rDrillinq Fluids: Losses to formation increased, reduced pump rate and increased LCM size. Total losses were 60 barrels. No abnormal connections seen. The average time to get returns was 5-7 minutes and the average return is 7-9 barrels. 02/18/2012 Continued to drill ahead 10 feet at a time to 9222' MD, circulating after each 10 feet for bottoms up samples. In the early morning hours, the 8900 Chromatograph's flame went out. It was started back up immediately and relit itself with no problems. This happened on several occasions, each time it was immediately relit with no problems and minimal data lost. At around 6.40am the well began to take loses, circulation was completely lost and no returns were coming back, this meant no samples or gas were recorded from 9265' to 9306'. The bit was then pulled inside the shoe to 8220', whilst more mud was delivered to the rig. The bit was run back to bottom and we attempted to reestablish circulation whilst drilling to 9317'. Circulation was never achieved but TD was called at 9315' MD at 16:40. A slow pump rate was established and the pipe was pulled back inside the shoe. Pulled out of the hole whole pumping to 9032' MD and monitored well. Decreased mud weight to 12.7 ppg. Continued to pull out of the hole. Geology: No samples due to lost circulation. Gas: The max gas was 303 units at 9198' MD and the average background gas was 38 units. Fluids: Losses were greater than 900 barrels to the formation. 02/19/2012 Continued to pull out of the hole. At 2912' MD the well began to gain mud, stopped pulling out of the hole. Monitored well for flow back, the decision was made to run back in the hole to try and determine the mud weight lower down. At around 5900' MD the well was showing a mud weight out of 12.2ppg and a mud weight in of 12.8ppg. The well was still taking loses at this depth. Started tripping out of the hole whole monitoring the well. At 4060' MD tried pulling out of the hole without pumping, swab and surge. Continued to pull out of the hole while pumping. Geology: No geology. Gas: No gas data. Fluids: Total losses were 455 barrels. 02/20/2012 Continued to pull out of the hole to surface. Laid down BHA and rack back heavy weight drill pipe. Cleared and cleaned rig floor. Rigged up BHA to use for clean out run. Picked up BHA and ran in to 9217' MD. Washed and reamed to TD at 9315' MD. No fill on bottom. Spoted LCM pill in open hole by pumping out to 8560' MD. Let pill soak for approximately two hours before running in the hole to TD. Rigged up wireline tools. Geology: No geology. Gas: No gas data. Fluids: Total losses were 270 barrels. 02/21/2012 Continued rig up wireline. Ran in the hole with wireline. Had to pump on tool to help get it to go down. Pulled wireline out of the hole and laid down wireline tools. Back reamed from 9313' MD to 8935' MD. Pumped out of the hole from 8560' MD to BHA. Began laying down BHA. Geology: No geology. Gas: No gas data. Fluids: Gaining at 6 barrels per hour while monitoring before pulling out of the hole. // &. Brooks Range Petroleum Corporation -IALLI B U RTO N I Sperry Drink 02/22/2012 Finished laying down BHA. Picked up cementing BHA and ran in the hole. The well started to flow at around 6000' MD, went into well control situation and monitored well whilst shut in. Gas of over 500 units was seen whilst well was flowing. Continued to run in the hole. Pressure tested casing, to 3500psi test was good. Cemented as per Halliburton. Pulled five stands and circulated. Waited on cement. Rigged down gas equipment and pulled in CVE lines. Geology: No geology. Gas: While the well was flowing, over 500 units of gas was seen. Fluids: Gained 20 barrels in half an hour while in well control situation. 02/23/2012 Finished rigging down equipment and discontinue monitoring well, SDL leaves location 02/23/2012. Brooks Range Petroleum Corporation Customer: Brooks Range Petroleum Report#: 1 Well: Mustang#1 Date: 1-Feb-12 IALLIBURTON Area: North Tarn 04:00 Depth 0' Location: North Slope Progress 24 hrs: 0' perry []rifling Rig: N7ES Rig Activity: Build Spud Mud Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $3,096.00 Total Charges: $6,192.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) Flow In (gpm) SPP (psi) Flow In (spm) Gallons/stroke Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition PWD All Circ Min 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/100ft2) m1/30min mg/I BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes-Mill Tooth 12.25 0.739 Lithology(%): Sd Sst Silt �Siltst Cht Clyst Sh Lst Coal Gvl Tuff Ii (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Moved and set up diverter line. Set up MWD and mud logger shacks. Waited on unit to warm up before beginning to rig up. Loaded pipe shed with drill pipe and heavy weight drill pipe. Rigged up CVE,Legacy gas trap,and ran gas line to the unit. Rigged up network connection with MWD and WITS to Canrig. Troubleshooted and set up computers and gas equipment inside the unit. Build spud mud for the surface interval. Installed 84 mesh screens on shakers. Logging Engineer: Jessica Munsell/Craig Amos Report By: .Jessica Munsell Customer: Brooks Range Petroleum Report#: 2 Well: Mustang#1 Date: 2-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 0' e Location: North Slope Progress 24 hrs: 0' Sperry 'Drilling Rig: N7ES Rig Activity: Waiting on weather Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $10,250.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) Flow In (gpm) _ SPP (psi) Flow In (spm) Gallons/stroke Hole Condition Depth On Bot Hrs Ann Corr Avg Diam PWD Drilling Min Avg _Max All Circ Min 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/100ft2) ml/30min mg/I 0' 8.80 8.80 79 - 25 31 - 9.30 - BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes-Mill Tooth 12.25 0.739 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background Trip * 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Tested diverter and accumulators. Picked up drill pipe and racked back heavy weight drill pipe and drill pipe in the derrick. Made up and picked up BHA. Continued to troubleshoot network and Canrig connections. Corrected Canrig issues within Insite but continued to have issues with the network. Serviced and monitor rig as needed due to cold temperatures. Waiting on the weather to warm up before continuing rig operations. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 3 Well: Mustang#1 Date: 3-Feb-12 IALLIBURTON Area: North Tarn 04:00 Depth 1126' Location: North Slope Progress 24 hrs: 1126' .perry Drilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $14,308.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 129.7 103.7 389.6 1121' Flow In (gpm) 364 SPP (psi) 1347 Flow In (spm) 92 Gallons/stroke 2.9310 Hole Condition Depth On Bot Hrs Ann Corr Avg Diam PWD Drilling Min Avg Max All Circ Min Avg Max • I Mud Data: Density(ppg) Viscosity MBT PV YP API Hlt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP (Ib/100ft2) ml/30min mg/I % 715' 9.05 9.00 54 22.0 33 58 8.2 9.30 800 2.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes Mill Tooth VM 3 12.25 0.739 0' Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 80______22....1 — Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 28 1092' 11028 5571 2760 2797 2707 1082 1006 Minimum 0 251' 0 0 0 0 0 0 0 Average 2 115 6 3 3 3 1 1 Background 21 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to wait on the weather. Pre spud meeting and drilled to 191'MD. Pulled out of the hole and blew down top drive and picked up the rest of the BHA. Continued drilling to 700'MD. Circulated and conditioned hole. Conflicting computer IP addresses caused information to stop writing to the database. Drilling stopped until the issue was solved,so minimal data was lost. The problem was solved by getting new IP addresses from town. Samples have been coarse grained sandstone with a small percentage of silstone. Gas has been low and is just beginning to rise to a background gas average of 20 units with the last 100 feet. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 4 Well: Mustang#1 Date: 4-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 2886' _______ Location: North Slope Progress 24 hrs: 1760' Sperry Drilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $18,366.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 103.1 72.8 542.3 2850' Flow In (gpm) 497 SPP (psi) 2291 Flow In(spm) 100 Gallons/stroke 2.9310 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 2886 22.14 PWD All Circ Min Avg Max YP API Filt pH Chlorides Cor Solids Mud Data: Density(ppg) Viscosity MBT PV Depth ft in out (sec/qt) (ppb Eq) cP (Ib/100ft2) ml/30min mg/I 2330' 9.60 9.55 312 30.0 56 77 6.0 9.10 2,000 4.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes Mill Tooth VM-3 12.25 0.739, 0' I ( I Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 80 20 Gas Summary i Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 356 2793' 44985 300 15 0 0 0 0 Minimum 1 1097' 0 0 0 0 0 0 0 Average 84 7147 14 0 0 0 0 0 Background 154 Trip " 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to drill ahead to 1566'MD. Made a short trip while backreaming out of the hole to 650'MD. Large amounts of cuttings were seen at the shakers. Circulated and conditioned hole. Ran in the hole to 900'MD and worked area. Continued down to bottom and drilled ahead. The samples have been a combination of medium grained,dark gray sandstone and medium gray silty claystone. The max gas was 356 units at 2793'MD and the average background gas has been 84 units. A drop in air pressure caused the flame to go out on the gas analyzer and chromatograph. A small amount of gas data was lost while they were being relit. Everything is now working correctly. Logging Engineer: Jessica Munsell/Craig Amos Report By: *Jessica Munsell ECustomer: Brooks Range Petroleum Report#: 5 Well: Mustang#1 Date: 5-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 3082' Location: North Slope Progress 24 hrs: 196' Sperry Drilling Rig: N7ES Rig Activity: Monitor Well Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $22,424.00 IF ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 8.2 217.1 3082' Flow In (gpm) 0 SPP (psi) 0 Flow In (spm) 0 Gallons/stroke 2.9930 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition PWD 3082' 24.44 All Circ Min 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/100ft2) ml/30min mg/I 3082' 9.55 9.60 243 23.0 47 73 5.4 9.20 1,000 5.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes Mill Tooth VM-3 12.25 0.739 0' Lithology (%): Sd Sst Silt _ Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) . Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 159 3082' 30176 173 20 0 0 0 0 Minimum 1 2815' 0 0 0 0 0 0 0 Average 99 6166 33 1 0 0 0 0 Background 0 Trip 178 * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Troubleshooted gas equipment. A drop in air pressure caused the flame to go out on the gas analyzer and chromatograph. A small amount of gas data was lost while they were being relit. The leak was located and fixed. Continued to drill ahead to 3082'MD TD. Circulated and conditioned hole clean. Back reamed out of the hole to 1500'MD. Tripped in the hole to 3082'MD and circulated bottoms up two times. Pulled out of the hole. Laid down BHA and monitored the well. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell :;illi Customer: Brooks Range Petroleum Report#: 6 Well: Mustang#1 Date: 6-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 3082' Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: N7ES Rig Activity: Cleaning Pits Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $26,482.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. ft/hr 0 Flow In .pm) 0 SPP (psi) 0 Flow In(spm) 0 Gallons/stroke 2.9930 Depth On Bot Hrs Ann Corr Avg Diam Drilling MinAvg Max Hole Condition 3082' 24.44 PWD All Circ Min 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/100ft2) ml/30min mg/I % 3082' 9.50 9.50 70 9.0 34 34 4.9 7.70 900 6.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 100 Hughes Mill Tooth VM-3 12.25 0.739, 0' ILithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background 0 Trip 125 * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Rigged up and ran 9 5/8"casing to 3069'MD. Circulated and conditioned with casing on bottom. Rigged up cement equipment. Pumped cement. Bump plug with 9.6 ppg spud mud, 190 bbls of cement returned back to surface. Rigged down cement equipment. Cleaned rig floor and pits. A max trip gas of 125 units was noted. Logging Engineer: Jessica Munsell/Craig Amos Report By: .Jessica Munsell f I 1111111...111111111.111W , Customer: Brooks Range Petroleum Report#: 7 Well: Mustang#1 Date: 7-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 3082' .____. Location: North Slope Progress 24 hrs: 0' Jerry Drilling Rig: N7ES Rig Activity: P/U drill pipe Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $32,592.00 ROP & Gas: Current ' Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. ft/hr 0 Flow In .pm) 0 _ SPP (psi) 0 Flow In(spm) 0 Gallons/stroke 2.9930 Depth On Bot Hrs Ann Corr Avg DiamDrilling Min Avg Max Hole Condition 3082' 24.44 PWD All Circ Min 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/100ft2) m1/30min mg/I % 3082' 9.50 8.80 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC 005052 8.5 0.949 3082' 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background 0 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued cleaning all pits of water based mud and emptied cuttings box. Nippled down diverter lines. Nippled up and tested i BOPs. Rigged down test equipment. Picked up 5"drill pipe. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 8 Well: Mustang#1 Date: 8-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 3640' Location: North Slope Progress 24 hrs: 558' Terry Drilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,443.00 Total Charges: $37,035.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 245 86.4 324.2 3636' Flow In (gpm) 568 SPP (psi) 1512 Flow In (spm) 112 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 3640' 3.46 PWD All Circ Min 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/100ft2) ml/30min mg/I 3228' 9.70 9.70 58 2.0 11 23 6.2 9.70 78,000 3.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC QD5052 8.5 0.949 3082' 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 15 70 15 Gas Summary Chromatograph (ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 24 3576' 53320 4990 2474 2462 2501 992 1002 Minimum 1 3083' 0 0 0 0 0 0 0 Average 9 1800 793 393 394 390 154 150 Background 6 Trip * 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Continued to pick up 5"drill pipe. Picked up BHA including 8.5" PDC Hughes QD505X, 7"SperryDrill Lobe 7/8—6.0 stg Mud Motor(0.33 revolutions per gallon), 6 3/4 DM, DGR, EWR and PWD. Successfully shallow pulse test BHA and began running in with 5" DP. Pressure tested casing to 3500 psi for 30 minutes. Slipped and cut drill line and serviced top drive. Drilled out shoe and 20 feet of new formation. Circulated and conditioned hole. Displaced mud and ran a LOT to 15.9 ppg. Drilling ahead. Samples have been predominantly light to medium gray, non calcareous, firm to soft, siltstone with a small percentage of shale and sandstone. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell i` iiii Customer: Brooks Range Petroleum Report#: 9 Well: Mustang#1 Date: 9-Feb-12 IIALLIBURTON Area: North Tarn 04:00 Depth 5483' Location: North Slope Progress 24 hrs: 1843' ;perry Drilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $41,093.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 211 76.8 413.98 5408' Flow In (gpm) 569 SPP(psi) 1868 Flow In(spm) 115 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition5483' 14.19 PWD All Circ Min 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/100ft2) ml/30min mg/I ok 4950' 9.70 9.70 51 2.8 14 25 5.2 9.80 68,000 8.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC QD5052 8.5 0.949 3082' _ 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 t0 ILithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 10 90 Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 173 5464' 17003 191 15 0 0 0 0 Minimum 1 3577' 0 0 0 0 0 0 0 Average 67 3875 24 0 0 0 0 0 Background 82 _ Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to drill ahead. It was noted that gas seemed lower than it should be and it was decided to switch to the Legacy gas trap system. Gas immediately rose from 1-10 units to 115-130 units. The Legacy gas trap was used until around 18:00 on February 8th, after working on figuring out why the CVE gas system was not working. It was thought that a hose was blocked with clay. We then switched back to the CVE gas system. Gas stayed in the range of 130-160 units, and then slowly declined throughout the night to around 12-15 units. At 02:00 on February 9th, it was decided to switch back to the Legacy gas trap system again. Gas immediately rose to 80-90 units. The max gas was 173 units at 5464'MD and the average background gas was 67 units. At 4804' MD a wiper trip was made. We pulled out of the hole to the shoe and then tripped back into the hole and continued drilling. No adnormal connections seen. The average time to get returns is 4-5 minutes and the average return is 8-12 barrels. rf The samples have been medium to light gray, firm to hard siltstone with trace amounts of very fine, light gray to white, sandstone. c Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell 0 Customer: Brooks Range Petroleum Report#: 10 Well: Mustang#1 Date: 10-Feb-12 HALLI B U RTO N Area: North Tarn 04:00 Depth 7478' Location: North Slope Progress 24 hrs: 1995' Sperry Drilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $45,151.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 136 82.9 436.54 7248' Flow In (gpm) 563 SPP (psi) 2094 Flow In (spm) 120 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg DiamDrilling Min Avg Max Hole Condition 7478' 28.36 PWD All Circ Min 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/100ft2) ml/30min mg/I 6977' 9.80 9.80 52 5.0 15 24 4.8 9.70 61,000 9.5 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 _ Hughes PDC QD5052 8.5 0.949 3082' _ 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 L-7LithTuffology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl I__ (current) 80 20 - Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 1044 6922' 92374 6317 2765 351 765 134 94 Minimum 4 5465' 0 0 0 0 0 0 0 Average 218 15819 773 313 40 84 0 0 Background 146 Trip 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to drill ahead. Increased mud weight to 9.8 ppg after background gas rose to 260 units at around 6500' MD. No noticed losses through the Torok zone. The max gas was 1044 units at 6922' MD and the average background gas was 218 units. No adnomal connections seens. The average time to get returns is 4-5 minutes and the average return is 8-11 barrels. The samples have been light white gray, very fine to fine grained sandstone with a small percentage of siltstone. The samples have recently changed to medium gray, soft to firm siltstone with a percentage of silty clay mixture. Currently drilling ahead. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 11 Well: Mustang#1 Date: 11-Feb-12 r- IALLIBURTON Area: North Tarn 04:00 Depth 7478' Location: North Slope Progress 24 hrs: 914' Sperry Drilling Rig: N7ES Rig Activity: POOH Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $49,209.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pum• & Flow Data: R.O.P. ft/hr 0 39.4 298.35 8125' Flow In ••m 0 SPP •si 0 ---- Flow In (s•m 0 Gallons/stroke 2.4220 De.th On Bot Hrs Ann Corr Av. DiamDrilling _Min _Avg _Max Hole Condition 8392' 42.1 --PWD All Circ _Min _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/100ft2) ml/30min mg/I % 8332' 9.90 10.00 49 8.5 16 25 5.2 9.50 58,000 10.5 _ BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hushes PDC QD5052 8.5 0.949 - 3082' 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' WO 91 , Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 80 20 , Gas Summary Chromatograph(ppm) Units Depth C-1 C-2 C-3 C-4i C-4n C-5i C 5n Maximum 2382 7681' 202535 9606 4711 596 1508 293 318 Minimum 6 7449' 0 0 0 0 0 0 0 Average 262 14861 936 569 81 229 8 7 Background 2 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Drilled ahead to 8392' MD. Circulated and conditioned hole clean with a high vis sweep to clean BHA. Fair amount of returns seen at shakers. Began pulling out of the hole for wiper trip, circulating after each stand for the first three stands and then continued pulling out on the elevators. While pulling out of the hole the surface system will be weighted up to 10.3 ppg. No . abnormal connections seen. The average time to get returns is 5-6 minutes and the average return is 8-13 barrels. The samples have been predominantly dark gray, firm, non calcareous siltstone with a small percentage of silty clay mixture. The max gas was 2382 units at 7681' MD and the average background gas was 262 units. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 12 Well: Mustang#1 Date: 12-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 8672' Location: North Slope Progress 24 hrs: 280' perry Drilling Rig: N7ES Rig Activity: RIH Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $53,267.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 11.5 200.58 8672' Flow In(gpm) 0 SPP(psi) 0 Flow In(spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg _Max Hole Condition8672' 48.53 PWD All Circ Min 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/100ft2) ml/30min mg/I 8672' 10.80 10.70 52 9.8 19 26 5.4 9.60 55,000 11.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 _ Hughes PDC QD5052 8.5 0.949 3082' 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 LLtLlthology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 40 60 Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 574 8672' 202535 9606 4711 2522 2510 1027 1043 Minimum 11 8393' 0 0 0 0 0 0 0 Average 201 10049 670 316 98 152 27 26 Background 41 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: .Tripped back in the hole and continued drilling. Increased the mud weight to 10.7 ppg with spike fluid. Drilled to 8672' MD before mud pump#1 went down. Back reamed out of the hole while mud pump is being repaired. Began running in the hole after the mud pump was repaired. No abnormal connections seen. The average time to get returns is 5-7 minutes and the average return is 6-8 barrels. The samples before back reaming out of the hole were medium gray, moderately hard, blocky claystone with siltstone in part. The max gas was 574 units at 8672' MD and the average background gas was 201 units. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 13 Well: Mustang#1 Date: 13-Feb-12 11ALLI B U RTO I Area: North Tarn 04:00 Depth 9120' Location: North Slope Progress 24 hrs: 448' ;perry Drilling Rig: N7ES Rig Activity: __ POOH Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,443.00 Total Charges: $57,710.00 ROP & Gas• CurrentAvg 24 hr Max Max @ ft Current Pump Flow Data: R.O.P. (ft/hr) 0 19.0 327.25 9120' Flow In (gpm) 0 SPP (psi) 0 Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9120' 55.87 PWD All Circ Min Avg Max • Mud Data: Density(ppg) Viscosity MBT PV YP API Flit pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP (Ib/100ft2) ml/30min mg/I 9120' 10.70 10.70 51 12.0 19 26 5.2 9.40 55,000 12.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC QD5052 8.5 0.949 3082' 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 ,. ., -111-1 ,'.10.4. _a.. . r Lithology(%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 80 20 Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 1441 8811' 553010 41283 15654 1790 3252 759 671 Minimum 14 8673' 0 0 0 0 0 0 0 Average 518 31038 2086 2086 97 273 11 7 Background Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Tested mud pump after repair completed. Then tripped back to bottom and continued drilling ahead to 9120' MD TD. Circulated and conditioned with 3 sweeps. Cuttings reduced at shakers after each sweep surfaced. Gas increased to 7434 units so mud weight was increased to 10.8ppg.After gas controlled and hole conditioned began pulling out of the hole. The samples at TD were dark grey to black, hard, non calcareous siltstone. The max gas while drilling was 1441 units at 8811' MD and the average background gas was 518 units. The max gas after circulating bottoms up was 7434 units Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 14 Well: Mustang#1 Date: 14-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 9120' Location: North Slope Progress 24 hrs: 0' xitrr•y Drilling Rig: N7ES Rig Activity: RIH w/7' Casing Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $61,768.00 ROP & Gas: Current _ Avg 24 hr Max Max @ ft _ Current Pump & Flow Data: R.O.P. (ft/hr) 0 _ Flow In (gpm) 0 SPP (psi) 191 _ Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg DiamDrilling Min Avg Max Hole Condition 9120' 55.87 PWD All Circ Min 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/100ft2) ml/30min mg/I % 9120' 10.80 10.90 55 12.0 23 25 5.6 9.30 45,500 13.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC QD5052 8.5 0.949 , 3082' , 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 LL ithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background 38 Trip * 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Continued to pull out of the hole. Laid down BHA. Rigged up for casing. Began running in the hole with 7'casing. • Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 15 Well: Mustang#1 Date: 15-Feb-12 IALLIBURTON Area: North Tarn 04:00 Depth 9120' _, Location: North Slope Progress 24 hrs: 0' "merry Drilling Rig: N7ES Rig Activity: Cleaning Pits Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $65,826.00 ROP & Gas: Current _ Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 _ Flow In (gpm) 0 SPP (psi) 191 Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg DiamDrilling Min Avg Max Hole Condition 9120' 55.87 PWD All Circ Min 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/100ft2) ml/30min , mg/I % 9120' 10.50 10.80 52 7.5 8 15 7.5 9.40 25,000 13.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM _ Condition 200 Hughes PDC QD5052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 _ 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) 1 Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background Trip * 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Continued to run in the hole with 7'casing. Landed casing at 9109' MD. Rigged up for cementing. Pressure tested float and casing. No returns while pumping cement. There were partial returns while displacing the cement. Rigged down cement tools. Rigged up and tested BOPs. Cleaned pits for new mud system. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell 1 1 Customer: Brooks Range Petroleum Report#: 16 Well: Mustang#1 Date: 16-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 9120' Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: N7ES Rig Activity: P/U 4" DP Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $69,884.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 Flow In (gpm) 0 SPP (psi) 191 Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9120' 55.87 PWD All Circ Min 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/100ft2) m1/30min mg/I % 9120' 10.50 10.80 52 7.5 8 15 7.5 9.40 25,000 13.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 200 Hughes PDC QD5052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 100 Hughes Mill Tooth VM-3 12.25 0.739 24.44 108' 3082' 2974' 21 58 Lithology (%): Sd Sst Silt Siltst Cht I Clyst Sh Lst Coal Gvl Tuff ' (current) _.4 Gas Summary Chromatograph (ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background Trip * 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Continued cleaning pits. Laid down 5"drill pipe out of mouse hole. Freeze protected annulus and pressure tested. Rigged down hot oil and began to pick up 4"drill pipe. Emptied pit#3 of water brought into make fluid. . t Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 17 Well: Mustang#1 Date: 17-Feb-12 I-IIALLIBURTON Area: North Tarn 04:00 Depth 9120' ___ ________ Location: North Slope Progress 24 hrs: 0' _ iperry Drilling Rig: N7ES Rig Activity: RIH w/4" DP Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $73,942.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 Flow In(gpm) 0 SPP(psi) 0 Flow In(spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9120' 55.87 PWD All Circ Min Avg Max • Mud Data: Density(ppg) Viscosity MBT 1 PV YP API Filt pH Chlorides Cor Solids Depth ft in out _ (sec/qt) (ppb Eq) cP (Ib/100ft2) ml/30min mg/I % 9120' 12.90 12.90 69 0.0 24 28 8.0 9.80 155,000 21.5 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 9120' 200 Htighes PDC QD5052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal I Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-41 C-4n C-5i C-5n Maximum Minimum Average Background Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to pick up 4"drill pipe to 945' and rack back drill pipe. Pick up BHA and shallow test MWD tools. Continued running in the hole with 4"drill pipe,filling pipe every 30 stands.After picking up singles to 8755' MD,cut and slip drill line. Continue running in the hole with 4"drill pipe. iiimimmumummirdurmwimiLogging Engineer: Jessica Munsell/Craig Amos Report By: .Jessica Munsell Customer: Brooks Range Petroleum Report#: 18 Well: Mustang#1 Date: 18-Feb-12 IALLIBURTON Area: North Tarn 04:00 Depth 9233' __ Location: North Slope Progress 24 hrs: 113' ierry Grilling Rig: N7ES Rig Activity: Drilling Ahead Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $78,000.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 32 4.6 158.21 9201' Flow In(gpm) 177 SPP (psi) 2090 Flow In(spm) 72 Gallons/stroke 2.4220 Hole Condition Depth On Bot Hrs Ann Corr Avg Diam PWD Drilling Min Avg Max 9233' 6.56 All Circ Min 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/100ft2) ml/30min _ mg/I % 9192' 12.80 12.80 70 3.8 26 34 3.6 9.90 80,000 22.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 9120' 200 Hughes PDC QD5052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal , Gvl Tuff (current) 100 Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 482 9191' 44160 3886 1577 1559 1528 568 558 Minimum 11 9121' 0 0 0 0 0 0 0 Average 176 2141 169 49 4 9 1 1 Background 90 Trip * 10000 units= 100%Gas In Air `a (current) (max) Mr d R 24 hr Recap: Continued running in the hole with 4"drill pipe,filling pipe every 30 stands. After picking up singles to 8755' MD, cut and slip drill line, serviced top drive and re-set block height. Continued running in the hole with 4"drill pipe to bottom.. Drilled out float collar and cement before displacing with 12.9 ppg Flor-Pro. Drilled out shoe with new system and about 15 feet of new hole. i Performed LOT to 16.6 ppg. Continued to drill ahead to 9172' MD,where we encountered a drilling break. Circulated bottoms up sample,whch was:transparent,white, medium to fine grained, unconsolidated,very calcareous sandstone with trace amounts of glauconite. SHOW: faint even green fluorescence, none streaming,faint green cut. Drilled ahead 10 feet at a time, circulating Iafter each 10 feet for bottoms up samples. Losses to formation increased, reduced pump rate and increased LCM size. Total losses were 60 barrels. No abnormal connections seen. The average time to get returns was 5-7 minutes and the average return is 7-9 barrels. The max gas was 482 units at 9191' MD and the average background gas was 176 units. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 19 Well: Mustang#1 Date: 19-Feb-12 rIALLIBURTON Area: North Tarn 04:00 Depth 9315' _.. Location: North Slope Progress 24 hrs: 82' ;perry Drilling Rig: N7ES Rig Activity: POOH Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $82,058.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. ft/hr 0 3.5 238.64 9277' Flow In .pm) 77 SPP (psi) 482 Flow In(spm) 32 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9315' 11.17 PWD All Circ Min Avg Max 1, , Mud Data: Density(ppg) Viscosity MBT PV YP API Filt pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP (Ib/100ft2) ml/30min mg/I % 9315' 12.70 12.70 51 0.0 17 20 4.8 9.60 60,000 20.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB _ RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 9120' 200 Hughes PDC QD5052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum 303 9198' 21013 1133 323 26 2574 0 0 i ' Minimum 3 9231' 0 0 0 0 0 0 0 Average 38 703 44 17 0 4 0 0 Background 3 Trip * 10000 units= 100%Gas In Air (current) (max) r , 24 hr Recap: Continued to drill ahead 10 feet at a time to 9222' MD, circulating after each 10 feet for bottoms up samples. At around 6.40am the well began to take loses,circulation was completely lost and no returns were coming back,this meant no samples or gas were recorded from 9265'to 9306'. The bit was then pulled inside the shoe to 8220', whilst more mud was delivered to the rig. The bit was run back to bottom and we attempted to reestablish circulation whilst drilling to 9317'. Circulation was never achieved but TD was called at 9315' MD at 16:40.A slow pump rate was established and the pipe was pulled back inside the shoe. Pulled out of the hole whole pumping to 9032' MD and monitored well. Decreased mud weight to 12.7 ppg. Continued to pull out of the hole. No samples due to lost circulation. The max gas was 303 units at 9198' MD and the average background gas was 38 units. Losses were greater than 900 barrels to the formation. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell Customer: Brooks Range Petroleum Report#: 20 Well: Mustang#1 Date: 20-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 9315' Location: North Slope Progress 24 hrs: 0' I.perry Drilling Rig: N7ES Rig Activity: L/D BHA Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $3,288.00 Total Charges: $85,346.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 Flow In(gpm) 0 . SPP(psi) 0 Flow In(spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9315' 11.17 PWD All Circ Min 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/100ft2) ml/30min mg/I % 9315' 12.70 12.70 87 0.0 22 42 3.8 10.00 108,000 22.0 ZEE- BHA . ,t-BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 9120' 9315' 195' _ 200 Hughes PDC 005052 8.5 0.949 107.54 3082' 9120' 6038' 30 100 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff I (current) Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background 3 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to pull out of the hole.At 2912' MD the well began to gain mud, stopped pulling out of the hole. Monitored I well for flow back,the decision was made to run back in the hole to try and determine the mud weight lower down. At around 5900' MD the well was showing a mud weight out of 12.2ppg and a mud weight in of 12.8ppg.The well was still taking loses at this depth. Started tripping out of the hole whole monitoring the well. At 4060' MD tried pulling out of the hole without pumping, swab and surge. Continued to pull out of the hole to surface while pumping. Lay down BHA. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell # Customer: Brooks Range Petroleum Report#: 21 Well: Mustang#1 Date: 21-Feb-12 ! HALLIBURTON Area: North Tarn 04:00 Depth 9315' Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: N7ES Rig Activity: Run Wireline Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $3,288.00 Total Charges: $88,634.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 Flow In (gpm) 0 SPP (psi) 0 Flow In (spm) 0 Gallons/stroke 2.4220 Hole Condition Depth On Bot Hrs Ann Corr Avg Diam PWD Drilling Min Avg Max 9315' 11.17 All Circ Min Avg Max • Mud Data: Density(ppg) Viscosity MBT PV YP API Flit pH Chlorides Cor Solids Depth ft in out (sec/qt) (ppb Eq) cP (Ib/100ft2) m1/30min _ mg/I _ 9315' 12.70 12.70 84 0.0 24 37 3.8 9.40 100,000 21.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB 1 RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 11.18 9120' 9315' 195' 25 100 200 Hughes PDC QD5052 8.5 0.949 107.54 3082' 9120' rn2A' 30 100 Lithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) �— Gas Summary I Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum - Minimum Average Background Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued to pull out of the hole to surface. Laid down BHA and rack back heavy weight drill pipe. Cleared and cleaned rig floor. Rigged up BHA to use for clean out run. Picked up BHA and ran in to 9217' MD. Washed and reamed to TD at 9315' MD. No fill on bottom. Spoted LCM pill in open hole by pumping out to 8560' MD. Let pill soak for approximately two hours I before runningin the hole to TD. Rigged gged up wireline tools. Logging Engineer: Jessica Munsell/Craig Amos Report By: .Jessica Munsell Customer: Brooks Range Petroleum Report#: 22 Well: Mustang#1 Date: 22-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 9315' ._ Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: N7ES Rig Activity: RIH Job No.: AK-AM-0009113843 Report For: Bixby/Myers Daily Charges $4,058.00 Total Charges: $93,462.00 ROP & Gas: Current Avg 24 hr Max Max @ ft Current Pump & Flow Data: R.O.P. (ft/hr) 0 Flow In (gpm) 0 SPP (psi) 0 Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 8315' 11.17 PWD All Circ Min 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/100ft2) ml/30min mg/I 9315' 12.70 12.70 76 24 36 4.0 9.40 100,000 21.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 11.18 9120' 9315' 195' 25 100 ILithology (%): Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff (current) J .—. Gas Summary Chromatograph(ppm) Units* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background 4 Trip * 10000 units= 100%Gas In Air (current) (max) 24 hr Recap: Continued rig up wireline. Ran in the hole with wireline. Had to pump on tool to help get it to go down. Pulled wireline out of the hole and laid down wireline tools. Back reamed from 9313' MD to 8935' MD. Pumped out of the hole from 8560' MD to BHA. Laid down BHA. Began running back in the hole. I I ILogging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell 1 Customer: Brooks Range Petroleum Report#: 23 Well: Mustang#1 Date: 23-Feb-12 HALLIBURTON Area: North Tarn 04:00 Depth 9315' Location: North Slope Progress 24 hrs: 0' Sperry Drilling Rig: N7ES Rig Activity: Wait on Cement Job No.: AK-AM-0009113843 Report For: _ Bixby/Myers Daily Charges $3,673.00 Total Charges: $97,135.00 ROP & Gas: Current Avg 24 hr Max Max @ ft _ Current Pump & Flow Data: R.O.P. (ft/hr) 0 _ Flow In (gpm) 0 SPP (psi) 0 Flow In (spm) 0 Gallons/stroke 2.4220 Depth On Bot Hrs Ann Corr Avg Diam Drilling Min Avg Max Hole Condition 9315' 11.17 PWD All Circ Min 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/100ft2) ml/30min mg/I 9315' 12.70 12.70 85 - 23 45 4.0 9.70 113,000 21.0 BHA Run # Bit Type Size TFA Hours Depth in/out Footage WOB RPM Condition 300 Hughes PDC QD505FHX 6.125 0.448 11.18 9120' 9315' 195' 25 100 Lithology (%): I Sd Sst Silt Siltst Cht Clyst Sh Lst Coal Gvl Tuff 1 I (current) ! Gas Summary Chromatograph (ppm) IUnits* Depth C-1 C-2 C-3 C-4i C-4n C-5i C-5n Maximum Minimum Average Background Trip ` 10000 units = 100%Gas In Air (current) (max) 24 hr Recap: Finished laying down BHA. Picked up cementing BHA and ran in the hole. The well started to flow at around 6000' MD, went into well control situation and monitored well whilst shut in. Gas of over 500 units was seen whilst well was flowing. Continued to run in the hole. Pressure tested casing, test was good. Cemented as per Halliburton. Pulled five stands and circulated. Waited on cement. Logging Engineer: Jessica Munsell/Craig Amos Report By: ,Jessica Munsell 1 § J = ) f ) « ) \ 2 � � / \ k \ a � Q - z z « 4 § D e e - § ( } \ « G n a) 0- - o < \ } CO / \ / o \2 c3 Ls, k § f § " , ' U- § $ & f \ cp c3 11 . 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LL LL LL LL LL LL LL LL LL LL LL L11 ❑ 0- N th ' N c0 N- a0 0) 0 .- N o 4 N cS N- 0D 0) O NNN HALLIBURTON Sperry Drilling Formation Tops Mustang 1 Formation/Unit MD TVD SV1 1625 1539 Base Perm 1286 1241 Surface Casing Pt. 3069 2448 K-10 3232 2544 Torok 6005 4145 Iceberg 6817 4616 H-3 7263 4873 C-35 7940 5286 C-30 8380 5572 Top HRZ 8732 5801 Top Kalubik 8918 5921 K-1 Gamma Marker 9043 6002 Intermediate Casing Pt. 9110 6044 Top Kup C 9167 6079 LCU/Base Kup C 9187 6092 Kuparuk A3 9187 6092 Kuparuk A2 9245 6127 Miluveach 9305 6164 TD of Pilot Hole 9315 6171 Halliburton Company Definitive Survey Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Mustang 1 Slot I @ 100.80ft(IcePad@72.3'+7ES( Site: Tarn MD Reference: Mustang 1 Slot I©100.80ft(IcePad@72.3'+7ES( Well: Mustang 1 North Reference: True Wellbore: Mustang 1 Pilot Hole Survey Calculation Method: Minimum Curvature Design: Mustang 1 Pilot Hole Database: .Sperry AK PRD 16 Project Tarn Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Well Mustang 1 -Slot Slot I Well Position +N/-S 0.00 ft Northing: 5,940,809.93 ft Latitude: 70.249297 +E/-W 0.00 ft Easting: 465,312.31 ft Longitude: -150.280240 Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 72.30 ft Wellbore Mustang 1 Pilot Hole Magnetics Model Name Sample Date Declination Dip Angle Field Strength (0) (0) (nT) BGGM2011 1/31/2012 20.44 80.82 57,614 Design Mustang 1 Pilot Hole Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 28.50 Vertical Section: Depth From(TVD) +N/-S +E/-W Direction (ft) (ft) (ft) (0) 28.50 0.00 0.00 62.50 Survey Program Date 3/1/2012 1 From To Survey (ft) (ft) Survey(Wellbore) Tool Name Description Start Date 143.96 204.28 MWD Run 100 Interpolated Azi(Mustanc MWD_Interp Azi Fixed:v2:standard dec with interpolated azimutl 01/24/2012 295.17 3,030.46 MWD Run 100(Mustang 1 Pilot Hole) MWD MWD-Standard 02/06/2012 3,062.60 3,062.60 MWD Run 200 Interpolated Azi(Mustanc MWD_Interp Azi Fixed:v2:standard dec with interpolated azimutl 03/01/2012 3,147.92 9,010.82 MWD Run 200(Mustang 1 Pilot Hole) MWD MWD-Standard 03/01/2012 9,078.30 9,078.30 MWD Run 300 Interpolated Azi(Mustanc MWD_Interp Azi Fixed:v2:standard dec with interpolated azimutl 03/01/2012 9,121.79 9,215.51 MWD Run 300(Mustang 1 Pilot Hole) MWD MWD-Standard 03/01/2012 Survey Map Map Vertical MD Inc Azi TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (ft) (0/100') (ft) Survey Tool Name 28.50 0.00 0.00 28.50 -72.30 0.00 0.00 5,940,809.93 465,312.31 0.00 0.00 UNDEFINED 143.96 0.75 218.91 143.96 43.16 -0.59 -0.47 5,940,809.34 465,311.83 0.65 -0.69 MWD_Interp Azi(1) 204.28 0.46 154.55 204.27 103.47 -1.11 -0.62 5,940,808.82 465,311.69 1.14 -1.06 MWD_Interp Azi(1) 295.17 1.17 117.20 295.15 194.35 -1.87 0.36 5,940,808.06 465,312.66 0.94 -0.54 MWD(2) 389.27 4.55 105.15 389.12 288.32 -3.28 4.82 5,940,806.63 465,317.12 3.63 2.76 MWD(2) 480.97 7.49 105.85 480.31 379.51 574.92 9.17 103.31 573.26 472.46 -5.87 14.08 5,940,804.00 465,326.37 3.21 9.78 MWD(2) -9.26 27.26 5,940,800.54 465,339.53 1.83 19.90 MWD(2) 668.46 12.21 106.70 665.17 564.37 -13.82 43.99 5,940,795.91 465,356.23 3.32 32.64 MWD(2) 763.49 14.75 108.02 757.58 656.78 -20.45 65.13 5,940,789.18 465,377.33 2.69 48.32 MWD(2) 858.61 15.62 104.62 849.38 748.58 -27.43 89.03 5,940,782.09 465,401.21 1.31 66.31 MWD(2) 3/1/2012 9:51:02AM Page 2 COMPASS 2003.16 Build 71 Halliburton Company Definitive Survey Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Mustang 1 Slot I @ 100.80ft(IcePad@72.3'+7ES( Site: Tarn MD Reference: Mustang 1 Slot I @ 100.80ft(IcePad@72.3'+7ES( Well: Mustang 1 North Reference: True Wellbore: Mustang 1 Pilot Hole Survey Calculation Method: Minimum Curvature Design: Mustang 1 Pilot Hole Database: .Sperry AK PRD 16 Survey Map Map Vertical MD Inc Azi TVD TVDSS +NI-S +EI-W Northing Easting DLS Section (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (ft) (0/1001 (ft) Survey Tool Name 953.16 16.89 103.29 940.14 839.34 -33.80 114.72 5,940,775.60 465,426.86 1.40 86.15 MWD(2) 1,048.79 22.59 107.06 1,030.12 929.32 -42.39 145.82 5,940,766.87 465,457.92 6.10 109.77 MWD(2) 1,142.10 26.91 108.50 1,114.84 1,014.04 -54.35 183.00 5,940,754.74 465,495.04 4.67 137.22 MWD(2) 1,236.19 29.80 103.65 1,197.64 1,096.84 -66.63 225.93 5,940,742.26 465,537.90 3.93 169.63 MWD(2) 1,330.86 28.74 106.30 1,280.23 1,179.43 -78.57 270.63 5,940,730.12 465,582.55 1.77 203.77 MWD(2) 1,424.37 27.99 103.07 1,362.52 1,261.72 -89.85 313.59 5,940,718.65 465,625.45 1.83 236.67 MWD(2) 1,520.48 27.32 103.57 1,447.65 1,346.85 -100.12 357.00 5,940,708.18 465,668.81 0.74 270.43 MWD(2) 1,613.85 29.78 103.30 1,529.66 1,428.86 -110.48 400.40 5,940,697.61 465,712.16 2.64 304.14 MWD(2) 1,707.58 33.75 103.67 1,609.33 1,508.53 -122.00 448.37 5,940,685.88 465,760.07 4.24 341.38 MWD(2) 1,803.08 38.19 102.69 1,686.60 1,585.80 -134.76 502.98 5,940,672.87 465,814.61 4.69 383.92 MWD(2) 1,895.23 41.88 104.00 1,757.15 1,656.35 -148.46 560.63 5,940,658.90 465,872.20 4.11 428.74 MWD(2) 1,989.75 46.34 104.05 1,825.00 1,724.20 -164.40 624.44 5,940,642.67 465,935.93 4.72 477.98 MWD(2) I 2,084.96 50.72 104.27 1,888.03 1,78723 -181.86 693.60 5,940,624.90 466,005.00 4.60 531.26 MWD(2) 2,180.48 55.60 103.10 1,945.29 1,844.49 -199.91 767.86 5,940,606.51 466,079.16 5.20 588.79 MWD(2) 2,273.84 55.97 103.43 1,997.78 1,896.98 -217.63 843.00 5,940,588.45 466,154.22 0.49 647.26 MWD(2) 2,369.99 55.56 104.48 2,051.88 1,951.08 -236.79 920.14 5,940,568.93 466,231.26 1.00 706.84 MWD(2) 2,464.03 55.82 101.25 2,104.90 2,004.10 -254.08 995.85 5,940,551.29 466,306.89 2.85 766.01 MWD(2) 2,559.28 56.23 100.99 2,158.12 2,057.32 -269.32 1,073.36 5,940,535.70 466,384.31 0.49 827.73 MWD(2) 2,653.67 55.77 104.59 2,210.92 2,110.12 -286.63 1,149.65 5,940,518.04 466,460.52 3.20 887.40 MWD(2) 2,748.39 55.55 104.92 2,264.35 2,163.55 -306.55 1,225.28 5,940,497.78 466,536.05 0.37 945.29 MWD(2) 2,841.94 55.18 104.43 2,317.52 2,216.72 -326.05 1,299.74 5,940,477.94 466,610.41 0.58 1,002.33 MWD(2) 2,935.31 55.02 102.06 2,370.94 2,270.14 -343.59 1,374.28 5,940,460.05 466,684.85 2.09 1,060.34 MWD(2) 3,030.46 54.83 103.48 2,425.62 2,324.82 -360.80 1,450.22 5,940,442.49 466,760.71 1.24 1,119.76 MWD(2) 3,062.60 54.44 102.91 2,444.23 2,343.43 -366.79 1,475.73 5,940,436.39 466,786.19 1.89 1,139.63 MWD_Interp Azi(3) 3,147.92 53.96 101.43 2,494.14 2,393.34 -381.38 1,543.37 5,940,421.49 466,853.76 1.52 1,192.89 MWD(4) 3,249.63 53.44 100.65 2,554.35 2,453.55 -397.07 1,623.83 5,940,405.42 466,934.13 0.80 1,257.00 MWD(4) 3,341.05 52.66 101.19 2,609.31 2,508.51 -410.91 1,695.56 5,940,391.26 467,005.80 0.98 1,314.24 MWD(4) 3,432.69 53.00 102.32 2,664.67 2,563.87 -425.79 1,767.05 5,940,376.05 467,077.21 1.05 1,370.79 MWD(4) 3,530.81 55.03 102.06 2,722.32 2,621.52 -442.55 1,844.65 5,940,358.94 467,154.73 2.08 1,431.88 MWD(4) 3,622.26 54.50 101.79 2,775.08 2,674.28 -457.99 1,917.74 5,940,343.17 467,227.73 0.63 1,489.58 MWD(4) 3,721.29 56.43 104.58 2,831.23 2,730.43 -476.61 1,997.14 5,940,324.18 467,307.04 3.03 1,551.41 MWD(4) 3,812.80 56.22 103.02 2,881.97 2,781.17 -494.78 2,071.10 5,940,305.67 467,380.90 1.44 1,608.62 MWD(4) 3,908.87 56.06 104.03 2,935.50 2,834.70 -513.44 2,148.66 5,940,286.66 467,458.37 0.89 1,668.81 MWD(4) 4,004.84 55.64 103.14 2,989.37 2,888.57 -532.09 2,225.86 5,940,267.65 467,535.47 0.88 1,728.67 MWD(4) 4,098.71 55.68 105.83 3,042.33 2,941.53 -551.48 2,300.89 5,940,247.92 467,610.41 2.37 1,786.27 MWD(4) 4,190.32 55.25 105.42 3,094.27 2,993.47 -571.80 2,373.57 5,940,227.26 467,682.99 0.60 1,841.35 MWD(4) 4,282.52 54.53 104.87 3,147.30 3,046.50 -591.51 2,446.37 5,940,207.22 467,755.69 0.92 1,896.83 MWD(4) 4,374.78 53.73 105.13 3,201.36 3,100.56 -610.86 2,518.59 5,940,187.55 467,827.81 0.90 1,951.95 MWD(4) 4,473.23 52.68 105.07 3,260.32 3,159.52 -631.40 2,594.70 5,940,166.66 467,903.82 1.07 2,009.98 MWD(4) 4,570.56 53.69 104.57 3,318.64 3,217.84 -651.32 2,670.03 5,940,146.39 467,979.05 1.12 2,067.59 MWD(4) 3/1/2012 9:51:02AM Page 3 COMPASS 2003.16 Build 71 Halliburton Company Definitive Survey Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Mustang 1 Slot I©100.80ft(IcePad@72.3'+7ES( Site: Tarn MD Reference: Mustang 1 Slot I©100.80ft(IcePad@72.3'+7ES( Well: Mustang 1 North Reference: True Wellbore: Mustang 1 Pilot Hole Survey Calculation Method: Minimum Curvature Design: Mustang 1 Pilot Hole Database: .Sperry AK PRD 16 Survey Map Map Vertical MD Inc Az! TVD TVDSS +N/-S +E/-W Northing Easting DLS Section (ft) (°) (°) (ft) (ft) (ft) (ft) (ft) (ft) (°1100') (ft) Survey Tool Name 4,665.22 54.73 104.21 3,374.00 3,273.20 -670.40 2,744.40 5,940,126.97 468,053.33 1.14 2,124.76 MWD(4) 4,760.92 53.90 104.17 3,429.83 3,329.03 -689.46 2,819.76 5,940,107.57 468,128.59 0.87 2,182.80 MWD(4) 4,854.52 55.33 103.93 3,484.03 3,383.23 -707.98 2,893.79 5,940,088.70 468,202.52 1.54 2,239.91 MWD(4) 4,949.87 54.42 103.25 3,538.89 3,438.09 -726.31 2,969.59 5,940,070.03 468,278.23 1.12 2,298.68 MWD(4) 5,044.39 54.28 104.88 3,593.98 3,493.18 -744.97 3,044.09 5,940,051.03 468,352.63 1.41 2,356.15 MWD(4) 5,138.02 53.26 104.91 3,649.32 3,548.52 -764.39 3,117.07 5,940,031.28 468,425.53 1.09 2,411.92 MWD(4) 5,225.45 54.32 104.64 3,700.96 3,600.16 -782.38 3,185.28 5,940,012.98 468,493.65 1.24 2,464.12 MWD(4) 5,320.30 55.06 106.65 3,755.79 3,654.99 -803.25 3,259.81 5,939,991.76 468,568.07 1.90 2,520.58 MWD(4) 5,420.18 54.20 106.86 3,813.61 3,712.81 -826.73 3,337.80 5,939,967.92 468,645.94 0.88 2,578.92 MWD(4) 5,515.82 55.10 105.07 3.868.94 3,768.14 -848.18 3,412.79 5,939,946.13 468,720.82 1.79 2,635.54 MWD(4) 5,608.19 55.20 103.96 3,921.73 3,820.93 -867.18 3,486.17 5,939,926.80 468,794.11 0.99 2,691.86 MWD(4) 5,699.98 56.16 104.29 3,973.48 3,872.68 -885.68 3,559.69 5,939,907.96 468,867.53 1.09 2,748.52 MWD(4) 5.796.23 55.48 103.09 4,027.55 3,926.75 -904.53 3,637.05 5,939,888.76 468,944.80 1.25 2,808.44 MWD(4) 5,891.51 55.93 104.40 4,081.24 3,980.44 -923.23 3,713.51 5,939,869.71 469,021.16 1.23 2,867.62 MWD(4) 5,986.92 55.29 102.95 4,135.13 4,034.33 -941.85 3,790.00 5,939,850.74 469,097.56 1.42 2,926.88 MWD(4) 6,082.07 54.98 105.68 4,189.53 4,088.73 -961.14 3,865.64 5,939,831.10 469,173.10 2.38 2,985.06 MWD(4) 6,176.56 53.45 105.78 4,244.78 4,143.98 -981.92 3,939.42 5,939,809.98 469,246.78 1.62 3,040.90 MWD(4) 6,271.19 54.73 106.14 4,300.28 4,199.48 -1,003.00 4,013.11 5,939,788.57 469,320.36 1.39 3,096.54 MWD(4) 6,365.74 53.99 105.98 4,355.38 4,254.58 -1,024.26 4,086.95 5,939,766.97 469,394.10 0.79 3,152.22 MWD(4) 6,460.01 55.18 106.24 4,410.00 4,309.20 -1,045.58 4,160.76 5,939,745.32 469,467.80 1.28 3,207.84 MWD(4) 6,554.85 54.44 105.99 4,464.66 4,363.86 -1,067.09 4,235.22 5,939,723.46 469,542.15 0.81 3,263.96 MWD(4) 6,649.43 53.71 105.73 4,520.15 4,419.35 -1,088.02 4,308.89 5,939,702.19 469,615.72 0.80 3,319.64 MWD(4) 6,744.15 55.71 103.95 4,574.87 4,474.07 -1,107.81 4,383.62 5,939,682.07 469,690.35 2.61 3,376.79 MWD(4) 6,838.52 54.87 103.77 4,628.61 4,527.81 -1,126.39 4,458.94 5,939,663.14 469,765.58 0.90 3,435.02 MWD(4) 6,932.76 54.83 103.33 4,682.86 4,582.06 -1,144.44 4,533.85 5,939,644.74 469,840.39 0.38 3,493.13 MWD(4) 7,028.47 54.77 100.80 4,738.04 4,637.24 -1,160.79 4,610.32 5,939,628.05 469,916.78 2.16 3,553.41 MWD(4) 7,122.78 54.96 102.60 4,792.32 4,691.52 -1,176.43 4,685.84 5,939,612.06 469,992.22 1.57 3,613.17 MWD(4) 7,216.78 54.66 103.82 4,846.49 4,745.69 -1,193.98 4,760.62 5,939,594.16 470,066.92 1.11 3,671.40 MWD(4) 7,305.68 54.19 102.96 4,898.21 4,797.41 -1,210.73 4,830.96 5,939,577.10 470,137.17 0.95 3,726.06 MWD(4) 7,405.00 53.35 103.57 4,956.91 4,856.11 -1,229.11 4,908.94 5,939,558.36 470,215.06 0.98 3,786.74 MWD(4) 7,499.71 52.91 99.14 5,013.76 4,912.96 -1,244.03 4,983.19 5,939,543.10 470,289.23 3.77 3,845.72 MWD(4) 7,594.93 52.81 98.70 5,071.25 4,970.45 -1,255.80 5,058.18 5,939,530.98 470,364.16 0.38 3,906.80 MWD(4) 7,686.65 52.43 95.93 5,126.94 5,026.14 -1,265.08 5,130.46 5,939,521.37 470,436.38 2.44 3,966.62 MWD(4) 7,782.56 51.59 93.82 5,185.97 5,085.17 -1,271.51 5,205.76 5,939,514.59 470,511.65 1.94 4,030.45 MWD(4) 7,876.14 50.62 91.09 5,244.74 5,143.94 -1,274.64 5,278.52 5,939,511.13 470,584.38 2.50 4,093.54 MWD(4) 7,970.61 49.58 87.19 5,305.35 5,204.55 -1,273.58 5,350.96 5,939,511.86 470,656.82 3.35 4,158.28 MWD(4) 8,065.21 49.73 81.89 5,366.62 5,265.82 -1,266.72 5,422.68 5,939,518.39 470,728.57 4.27 4,225.07 MWD(4) 8,163.35 49.68 75.50 5,430.13 5,329.33 -1,252.06 5,496.01 5,939,532.71 470,801.96 4.97 4,296.89 MWD(4) 8,255.51 49.20 71.71 5,490.07 5,389.27 -1,232.31 5,563.16 5,939,552.15 470,869.19 3.17 4,365.57 MWD(4) 8,349.34 48.64 67.69 5,551.74 5,450.94 -1,207.79 5,629.48 5,939,576.36 470,935.61 3.28 4,435.71 MWD(4) 3/1t2012 9:51:02AM Page 4 COMPASS 2003.16 Build 71 Halliburton Company Definitive Survey Report Company: Brooks Range Petroleum Corporation Local Co-ordinate Reference: Well Mustang 1 -Slot Slot I Project: Tarn TVD Reference: Mustang 1 Slot I @ 100.80ft(IcePad@72.3'+7ES( Site: Tarn MD Reference: Mustang 1 Slot I @ 100.80ft(IcePad@72.3'+7ES( Well: Mustang 1 North Reference: True Wellbore: Mustang 1 Pilot Hole Survey Calculation Method: Minimum Curvature Design: Mustang 1 Pilot Hole Database: .Sperry AK PRD 16 Survey Map Map Vertical MD Inc Azi ND TVDSS +NI-S +E/-W Northing Easting DLS Section (ft) (°1 (°) (ft) (ft) (ft) (ft) (ft) (ft) 0100') (ft) Survey Tool Name 8,444.59 49.02 63.11 5,614.46 5,513.66 -1,177.95 5,694.63 5,939,605.90 471,000.90 3.64 4,507.28 MWD(4) 8,539.26 49.20 59.70 5,676.44 5,575.64 -1,143.70 5,757.45 5,939,639.85 471,063.87 2.73 4,578.82 MWD(4) 8,634.15 50.06 54.52 5,737.93 5,637.13 -1,104.45 5,818.11 5,939,678.82 471,124.70 4.26 4,650.74 MWD(4) 8,728.42 50.30 49.16 5,798.32 5,697.52 -1,059.74 5,875.00 5,939,723.26 471,181.79 4.37 4,721.85'MWD(4) 8,821.89 49.74 43.64 5,858.40 5,757.60 -1,010.40 5,926.84 5,939,772.36 471,233.85 4.56 4,790.62 MWD(4) 8,916.28 48.62 42.62 5,920.10 5,819.30 -958.27 5,975.67 5,939,824.26 471,282.92 1.44 4,858.01 MWD(4) 9,010.82 50.77 39.49 5,981.26 5,880.46 -903.90 6,022.99 5,939,878.41 471,330.48 3.40 4,925.08 MWD(4) 9,078.30 50.54 34.99 6,024.06 5,923.26 -862.37 6,054.56 5,939,919.78 471,362.24 5.17 4,972.26 MWD_Interp Azi(5) 9,121.79 51.64 32.97 6,051.38 5,950.58 -834.31 6,073.47 5,939,947.75 471,381.27 4.41 5,001.99 MWD(6) 9,215.51 52.04 32.61 6,109.28 6,008.48 -772.36 6,113.37 5,940,009.51 471,421.46 0.52 5,065.99 MWD(6) 9,315.00 52.04 32.61 6,170.48 6,069.68 -706.29 6,155.65 5,940,075.38 471,464.03 0.00 5,134.00 PROJECTED to TD 3/1/2012 9:51:02AM Page 5 COMPASS 2003.16 Build 71 HALLIBURTON Mustang 1 Sperry Drilling vs. Depth I 0 I l I I II I I I • -----Start 12.25" Surface Hole Section �26 Jan 2012-Sperry SDL On Bot:06:25 01 Feb 2012 Arrive on Location - f � 1000 -- -- -- -- --- I k TD 12.25" Surface Hole Section -- 2000 at 3082' MD,2455'TVD -- Off Bot: 06:25 04 Feb 2012 I I I I Set 9.625"Casing - _ __ __ — - 3069' MD, 2448'ND- 05Feb 2012 3000War -- � i -- SrI tart 8.5"Intermediate Hole Section ■ On Bot: 19:05 07 Feb 2012 —Progno ed MMI — i i Actual 4000 -- -----11111L t r_ Cl. CD CI III 1111 1 i ; fi IIII MIS 5000I!H__ 13 — __ -- • — -- --- y 1 ME 111 ' IMMINEM a) III 111111 IIIIIIIIIIIII i ,111 2 6000 — I'll 111' 1111.111111 1 ' Oil in. III II 7000 -- .44 ME Start 6.125" Production Hole Section lliII1111.0 On Bot:08:20 17 Feb 2012 8000 -- -- -- -- Set 7"Casing at 9109 . MD,9961'ND " TD 6.125" Production Hole Section . at 9315' MD,6170'TVD Off Bot: 16:40 18 Feb 2012 111111.11111111111111A 9000 — � ■■ -- —110111-111 _ MII=IIREIMITI —Sperry SDL Released — TD 12.25" Intermediate Hole Section # 02/23/2012 _ 9120 MD,6050'ND -- Off Bot: 17:20 12 Feb 2012 10000 1 I i I i I I I I I 0 4 8 12 16 Rig Days 20 24 28 32 HALLIBURTON Sperry Drilling Surface Data Logging After Action Review Employee Name: Craig Amos Date: 02/23/12 Well: Mustang 1 Hole Section: Production What went as, or better than,planned: The CVE when working performed excellently, it recorded data as required and caused minimal problems whilst running. The wits data with Canrig and MWD worked well when up and running and the gas data sent to the Canrig computers never failed. The new air compressors bought for the job worked consistantly even though they were placed outside in temperatures as low as-100F. Difficulties experienced: • Difficulties with networking the unit to the GCI network and HalNet at the beginning of the job, made it difficult to send and receive data for the upper hole section. This was resolved by installing a new switch and cables and allowed data to flow more easily. Other difficulties with power to the unit being drained ever time the bit was picked off bottom, caused the battery back-ups to die during production section. Recommendations: In future wells better power regulators should be used as well as having a spare set of UPS's on site to prevent, downtime from lost data. Correct network equipment should be used from the start of the well and networks should be up and running before drilling begins. Innovations and/or cost savings: Using two pieces of gas equipment, both the CVE and Legacy systems, prevented any down time when the CVE was blocked. Having back up gas gear on site helped to minmize the amount of gas data lost when the 8900 Gas Chromotgraph stopped working suddenly.
