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Home My WebLink About212-125 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 inspectionof the file. alcQ - LcI5 Well History File Identifier Organizing(done) ❑ Two-sided ❑ Rescan Needed RE AN: OVERSIZED: NOTES: C or Items: ❑ aps: Grayscale Items: Logs: ❑ Poor Quality Originals: ❑ Other: ❑ Other: BY: Maria Date: 10 1/.../// /s/ Li Project Proofing BY: (Maria )._ Date: 1 Jtt/i /s/ Scanning Preparation I x 30 = 3 0 + c2i . TOTAL PAGES 67 4 (Count does not include cover sheet) BY: Maria Date: ' ., /s/ V �/ Production Scanning Stage 1 Page Count from Scanned File: 59 (Count does include cover et) Page Count Matches Number in Scannin Pre aration: YES NO BY: MEW Date: ' LI. ' Is! alIp Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: Is/22 Stage 2 Additional Well Reports: NO TOTAL PAGES: 35 Digital version appended by: Meredith Michal Ft--- Date: 129 AI Is! Final Page Count: Stage 1 + Stage 2: TOTAL PAGES: a t Li- Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked 7/8/2014 Well History File Cover Page_20140708.doc sr o O 0 o •• U) . N co N O 1 . 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H o Z OI Ol CSI O O Y >- >- eh N OJ O O JI -J w til 0 al N OI OI OI 03 CO 03 c T b to F Q Q O O c o Q Ce Ce U U 1N o Q Ci Ix col coI Ol Ol I 1 1 a or L L Q Q OWI OI C71 �I �I m o H M M M M M 0 0 co -I TI TI �1 �I 0 0 Y Y Y Y Y W W W W W ea CL Nd' -d'I•U -� �� CC N 0 EL) UUI UUI UUI 0_I ate) z z II J OJ OJ OJ 0_I E ca Omoi. IG O O O O O v yU NU _NU _NU _NU.� C1 co V) N WZ)t WZ WZ._ WZ:t WZ "-: 0 O I. it J 3 co M M M M m @ f0 Cl) 0 0 o .. a N0 0 N N0 N N N E in 7 En0 0 W Q in r- co Cl) Z o rn ce a— i M ' ca I ii E WWfnco N C.) Q as mN ' E J E co Z - a> co N .cu (0 Q O Ce 0) N m O O O) CO N J a c y U E w a o �, 2 0 0 a) • E, O co Oro- E V NUso co c w d 0 J } Q E Q E N 0 o a a 2 z tH d 0 N = c a) E I W Y c o T o II V74C a) - CO 0 0 u) c o c Q o I— Z a) o - a o co 13 15 U 02 0 a) I I z f0 c0 a) c0 CO = N a0 0 0 0 0 Cla) N M C CB c 0 0 0 0 0 E 0 c 0 N ~ in � � N- N- > y W E a N N N N N N 0.) W O \ N C E 0 1.c re 0. 17; 'I Z 'aai E co y m o O cc a) .6 c 0 c N C Z c c0 O N co p O y Q O O Q O Dtc. Cr U U U 0 0 p 2 y i) ) J i a) .0 a) U E 0 O a 'o 0 ° co of E O m 0 0 0 0 0 0 ) a o 2 aa)) 0 o m a' o ¢ 0. w w w w w 3 - z 0 a- 0 0 0 c 1 0 o o I o O N O vi n N co V o 7 O Z oD N co Q7 co 5cd T O N D O O Z ,\_ ti a 11)1 oesa m ei 0 c c0 V 3 N NW a N W C U Q Q oo Za Q d c Jo to co I o o N a) a V CO U Q a H a 2 COz Y M V A JO p Q Z a I—Q C d D m 0 E w z m M rn v in N > V m N 3 N d N d 0' pNI u « ten a E °' O E am. M C G ,23513 WELL LOG TRANSMITTAL 3 To: AOGCC August 22, 2014 Attn: Meredith Guhl 333 West 7th Ave, Suite 100 Anchorage, Alaska 99501 RE: Dipmeter Analysis and Borehole Volume logs: NICOLAI CREEK NO. 13 Run Date: 8/25/2013 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Chris Gullett, Halliburton Wireline&Perforating, 6900 Arctic Blvd., Anchorage, AK 99518 FRS_ANC@halliburton.com NICOLAI CREEK NO. 13 LAS format, Digital Log Image files 023513 1CD Rom 50-283-20167-00 Borehole Volume (Field Print) 1 Color Log 50-283-20167-00 a 31!l 9 PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LE'1-1ER TO THE A MENTION OF: Halliburton Wireline&Perforating Attn: Chris Gullett 6900 Arctic Blvd. Anchorage, Alaska 99518 Office: 907-273-3527 Fax: 907-273-3535 FRS_ANC @halliburton.com -L-- R EC E I V E D Angela K. Singh Date: AUG 2 2 2014 Signed: AOGCC Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, July 22, 2014 9:55 AM To: 'jejones@aurorapower.com' Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: NCU 13, PTD 212-125, Additional data required Tracking: Recipient Read 'jejones @ a u ro ra p o we r.co m' Bettis,Patricia K(DOA) Davies,Stephen F(DOA) Read:7/22/2014 9:58 AM Dear Mr.Jones, I am completing the final compliance check for NCU 13, PTD 212-125,completed on 9/1/2013. During my review of the data supplied for this well, I noted that several required items have not been supplied to the AOGCC at this time. As required by Statute AS 31.05.030(d)(2)(B)and Regulation 20 AAC 25.071 (6)a sepia and a reproduced copy of all logs run, including common derivative formats such as tadpole plots of dipmeter data and borehole images produced from sonic or resistivity data, and including composite log formats... an electronic image file in a format acceptable to the commission may be substituted for the sepia. Please submit the digital data associated with XRMI Extended Range Micro Imager Tadpole plot, and XRMI Extended Range Micro Imager Tadpole and Stick Diagram plot. Digital data includes LAS and PDF files. Please also supply a paper copy of the Borehole Volume Plot. Please provide the digital data and the paper log by August 22, 2014. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 RECEIVED STATE OF ALASKA ALAS._ ,OIL AND GAS CONSERVATION COMMi.,,,ION NOV 0 5 2013 GCC 1a.WeIlStaWOil ELL COMPLETION OR RECOMPLETION REPORT AND LOG ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned 0 . Suspended❑ lb.Well Class: 2OAAC 25105 20AAC 25110 Development Q , Exploratory ❑ GINJ ❑ WINJ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5. Date Comp.,Susp.,or 12.Permit to Drill Number: AURORA GAS,LLCAbandJ 9/1/2013 212-125 / ' I3-Li VI 3.Address: 6.Date Spudded: 13.API Number: 1400 WEST BENSON,#410,ANCHORAGE,AK 99503 8/11/2013 50-283-20167-00-00 • 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 1724'FNL,2607'FEL, Sec.29,T11 N, R12W,S.M. 8/24/2013 NICOLAI CREEK UNIT#13 • Top of Productive Horizon: NA 8.KB(ft above MSL): 37.9 15.Field/Pool(s): GL(ft above MSL): 21.9 Nicolai Creek Unit Total Depth: 9.Plug Back Depth(MD+TVD): South Undefined Gas/' 2368'FNL, 1880'FWL,Sec.29,T11N,R12W,S.M. SURF(GL-5') Beluga Undefined Gas - 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 244,026 y- 2,566,739 Zone- 4 5071 /4934 ADL-391472 Seg. 1 TPI: x- y- Zone- 11.SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 243,232 y- 2,566,092 Zone- 4 NA Mental Health Trust(MHT-9200584) 18. Directional Survey: Yes 0 No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: Halliburton GR/SP,ACRT,DSNT,SDLT,RWCH,XRMI,WSST,SFTT&Canrig Mud Log 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASINGFr. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13.375 68 K-55 GL 695'GL GL 95'GL 'DRIVEN DRIVEN 0 9.625 36 J-55 SURF 709'KB SURF 709'KB 12.25" 92 bbl(300 sx)Light G 0 24.Open to production or injection? Yes ❑ No ❑✓ 25. TUBING RECORD If Yes,list each interval open(MD+TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): NA -' 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. ql U - Was hydraulic fracturing used during completion? Yes U No ❑ -; DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): NA Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period .. 0.- . Flow Tubing Casing Press: Calculated Oil-Bbl: -Gas-MCF: Water-Bbl: Oil Gravity-API(coir): Press. 24-Hour Rate -► 28. CORE DATA Conventional Core(s)Acquired? Yes❑ No❑, Sidewall Cores Acquired? Yes ❑ No❑✓ If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. RBDMS MAR 2 0 201 4 Form 10-407 Revised 10/2012 CONTINUED ON REVERSE 7iL (elkii7 Submit original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes ❑., No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Permafrost-Top NA NA needed,and submit detailed test information per 20 AAC 25.071. Permafrost-Base NA NA (Well was not completed; however,SFT pressures were taken--see log) Glacier wash surf surf Beluga 625 625 Top Tyonek Marker Coal 1912 1881 Carya 2-1 Coal 1996 1961 Carya 2-2 Coal 2472 2417 • Carya 2-3 Coal 2780 2710 Carya 2-4.0 Coal 3088 3005 Carya 2-4.2 Coal 3480 3379 Carya 2-5 Coal 3632 3525 Carya 2-5.2 Coal 3918 3800 Carya 2-6 Coal 4056 3933 Carya 2-7 Coal 4378 4250 Formation at total depth: Upper Tyonek 31. List of Attachments: Daily Operations Summary,Final(PAA)Wellbore Schematic,Directional Survey,and Logs(as listed on page 1) 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Ed Jones Email: jejones(a;aurorapov er corn Printed Name: J. Edward Jones Title: President Signature: .i Phone: 281-495-9957 X-201 Date: 10/23/2013 / 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-Altemating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 Surface Plug: 17 bbl(72 sx) A ? y Y Class G Cement at 15.3 ppg, t Aurora Gas, LLC ;' " . ' ` *:,� �: est.bottom at 200',top at r.- •`.,' '$.+ cut-off,5' below GL •NICOLAI CREEK : }., • 4 13-3/8" Structural UNIT #13 PLUG and r -� ••_ Conductor driven to 95'GL ABANDON—Final • Wellbore Diagram " • 9-5/8" 36#Surface Casing set at August 2013 ,''; ��''a't .1 •`Z; ': 708'and Cemented w/92 bbl(302 • sx)12.0 ppg LW Class G Accelerated Cement Drill 12-1/4"Hole to 710' ',l► �• • °v 11:!! .r 9-5/8"Casing Plug: Retainer set at Preliminary Formation Tops + • ''.i � 'M;: : = 625'and cemented with 20 bbl (84 V Beluga- 700'MD/TVD - "� Top Tyonek-1912' sx)Class G Cement at 15.3 ppg,15 Carya 2-1-1996'MD bbl below retainer and 5 bbl above. Carya 2-1 2472' Est bottom of plug is 850'and est. Carya 2-3-2765'MD top of plug is 560'. Carya 2-4-3380'MD Carya 2-4.2-3480'MI Carya 2-5-3632'MD + '.' r�+ `.r.tom., Second Plug: 50 bbl(211 sx) Carya 2-6-4056'MD Beluga 4:4'.1•, "; ,:2'.'+.t�-° 15.3 ppg G cement w/top at Carya 2-7-4378MD ;. . q s;•a r !1 • 1470' (tagged)and est. bottom 74,0, -' ' at 2200' Carya 2-1 c f. jl L '1 • 4 1,""; Wellbore filled with Carya 2-3 9.5 ppg Mud >*` -'4.7 : ,;a`s First Plug: 50 bbl(211 sx) 15.3 Carya 2-4.1 '. 1.: i.r""--41,r :+ . • ppg G cement. Top at 3288'and IP• " % , - est bottom between 3800-4000' Carya 2-4.2 jL Carya 2-5zx s' , =r Carya 2-6 Carya 2-7? Drilled 7-7/8"Hole to 5071' MD/4934"TVD AURORA GAS, LLC NICOLAI CREEK NO. 13 (AOGCC PERMIT No. 212-125) (API No. 50-283-20167-00) DRILLING AND PLUG AND ABANDONMENT OPERATIONS SUMMARY 7/28-29/13—Tyonek Contractors building road and pad. 7/30/13—Move in Kraxburger and related equipment to drive conductor. Pad construction continuing 7/31/13—Kraxburger drove 13-3/8" 68# K-55 conductor casing to 95' from GL(not final grade—ended up being at about 113' KB). RD and release Kraxburger. Pad construction continuing 8/1/13—Set mousehole and cellar ring and cut conductor.. Pad construction continuing. 8/2/13--Install starting head and test to 500 psi. Install diverter tee on conductor. Pad construction continuing. 8/3-4/13—Pad construction continued. 8/5/13—Final grade on pad. Lay felt and liner for rig containment. Set rig mats on containment. 8/6-10/13--MI and RU AWS #1 rig and support equipment. Install liner in temporary cuttings storage pit. 8/11/13—Continue RU. Test gas alarms and diverter. PU BHA. Mix spud mud. RIH, tag at 113'KB. Spud well. Drill 113-144'. 10.0 ppg 8/12/13—Drill to 517'. Short trip to 8" collars. Survey-1 deg. Drill to 613'. 10.2 ppg. 8/13/13—Drill to 715'. CBU. Wiper trip to conductor. Survey-0 deg. POH, LD BHA. RU Weatherford and run 18 joints+ 6.5"pup of 9-5/8" 36#J-55 LTC casing to 709'. RU Schlumberger cementers. Pump 50 bbl Mud Push+92 bbl (300 sx) Type I cement w/defoamer, dispersant, gas control, and accelerator(12.0 ppg, 1.72 cf/sx-7:25 pump time, 500 psi strength at 18:45). 10.4 ppg. 1 8/14/13-Fin pumping cement, displace with 5 BW+45 bbl mud. Bump plug, floats held. 8 bbl cement returns to surface. RD diverter. WOC. Clean pits. PU stack and cut casing. Prep conductor and surface casing for well head. 8/15/13-Weld on casing head-test to 1500 psi. Mix 10.0 ppg EZ mud. NU 11"X 3000 psi BOP stack and install choke and kill lines. Test BOP's-witnessed by John Crisp of AOGCC. 8/16/13-Finish BOP test-replaced or repaired several valves and connections. Install flow nipple. Test 9-5/8"casing to 1500 psi for 30 minutes-good. PU directional BHA and RIH,picking up DCs' Tag cement at 664'. Check functionality of Sperry directional and MWD tools. Drill cement, float, shoe, and new hole to 740'. FIT to 220 psi w/ 10.0 ppg mud= 16.0 ppg EMW at shoe. Drill to 988'. 8/17/13-Drill 1208'. Short trip to casing shoe. Drill to 1710'. 500' short trip. Drill to 1917'. 9.9 ppg. 8/18/13-Drill to 2213'. 500' short trip. Drilled to 2686'. Short trip to 2186'. Drill to 2871'. 9.8 ppg. 8/19/13-Drilled to 3184'. Short trip to 2684'. BOP drill. Drilled to 3625'. 9.5 ppg. 8/20/13-Drilled to 3688'. Survey. Trip for new bit w/tight hole at 1700-1600'. Drilled t 3938'. 9.5 ppg. 8/21/13-Drilled to 4193'. 500' short trip. Drill to 4660'. 9.5 ppg. 8/22/13-Drilled to 4788'. BHA appeared to be plugged. POH to check BHA-motor locked up. Test BOP's. 9.5 ppg. 8/23/13-- Finish testing BOP's-witness waived. PU new motor(high torque, lower speed) and BHA. Wash and ream into hole. Drill 4788-4885'. 9.5 ppg. 8/24/13-Drill to 5070' (TD). Short trip to shoe. RIH to 5070' CBU. 9.5 ppg. 8/25/13-POH, LD BHA. RU Halliburton to log. Ran Triple-Combo (GR/SP/AIID/N) first run. 2nd run-XRMI dipmeter. 3rd run-SFT express pressures-tool failed. POH, PU new tool. Ran pressures. RD Halliburton loggers. 9.5 ppg. 8/26/13-RIH w/mule shoe on 74 stds of DP. CBU. POH, LD 24 jts of DP. Circ at 3899', WOO. RIH to 4150'. Mix and pump 20 bbl high-vis pill. POH and LD 11 jts DP. RU Schlumberger cementers. Mix Mud Push. Mix 50 bbl cement slurry and pump, displacing with mud, spotting plug at 3800-2975' (211 sx Class G cement at 15.3 ppg, 1.33 cf/sk, with 5:00 pump time). POH to 2950' and reverse out. 2 8/27/13—Finish reverse out at 2950'. POH to 2299'. WOC 8 hrs. RIM and tag green cement at 3051'. WOC 4 more hours. RIH to 3288' and set down 18,000#. Mix 20 bbl high-vis pill, pull up to 2550' and spot pill. POH to 2200'. Mix 20 bbl Mud Push. RU Schlumberger. Pump 13 bbl Mud Push+ 50 bbl cement slurry, displace with 2 bbl Mud Push and 6 bbl mud, spotting plug at 2200-1397' (211 sx Class G cement at 15.3 ppg w/ 1.33 cf/sk yield, 6:32 pump time). 'k P1' -.1 Z, 8/28/13—Finish pumping 50 bbl 15.3 ppg cement. Pull 14 stds DP. Reverse out. Pump wiper ball. LD 20 jts DP. WOC 8.5 hrs. LD DP from derrick. WOC 5 hrs (total of 18.5 hrs). RIM w/DP, wash down to 1388' and tag cement. 8/29/13—Tag cement at 1470'. Set down 15,000#--plug held. POH, LD 27 jts of DP. PU 9-5/8"retainer, RIH, and set at 625'. RU SLB cementers. Pump 20 bbl 15.3 ppg cement—15 bbl below retainer, then unsting and pump 5 bbl on top of retainer. Pull 3 stds, circulate clean. POH, LD DP. Test casing and casing head to 1500 psi—bled to 1400 in 30 minutes. Push 9-5/8"rubber plug to 200' w/DP. Pump 15 bbl 15.3 ppg cement. POH, LD tubing. Pump 2 bbl cement to fill DP void. RD cementers. Start ND BOP. 8/30/13—Fin ND BOP's. RD AWS #1. 8/31/13—RD, move to Nicolai Creek Unit#2 for recompletion workover. 9/1/13-- Cut 9-5/8"to remove wellhead 5' below pad level. Weld on marker plate—take photos and email to AOGCC. Continue moving to NC #2. Ed Jones (10/17/13) 3 Aurora Gas, LLC Cook Inlet Nicolai Creek Unit NCU#13 NCU#13 Design: NCU#13 Sperry Drilling Services Standard Report 23 October, 2013 Well Coordinates: 2,566,738.90 N,244,026.32 E (61°01'03.73"N,151°26'34.56"W) 1 Ground Level: 21.90 usft Local Coordinate Origin: Centered on Well NCU#13 Viewing Datum: NCU#13 t 36.70usft((21.9'GL+14.8'KB)) TVDs to System: N North Reference: True Unit System: API US Survey Feet Geodetic Scale Factor Applied Version: 5000.1 Build: 70 HALLIBURTON •HALLIBURTON F. cCook Inlet WELLDETAnc: P. NAD 1927(NADCONCONUS) Alaska Zone 04 Sperry Drilling ServicesSite: Nicolai Creek Unit Ground level: 21.90 Well: NCU#13 +N/-S +E/-W Northing Easting Latittude Longitude Slot Wellbore: NCU#13 0.00 0.00 2566738.90 244026.32 61.01770166 -151.44293329 Plan: NCU#13 REFERENCE INFORMATION Co-ordinate(NE)Reference:Well NCU#13,True North -250— Vertical(TVD)Reference:NCU#13 38.70ustt((21.9.GL+14.8'KB)) _ Measured DepthReference: NCU#13 38.70us8((21.9GL+14.83(B)) Calculation Method:Minimum Curvature 0- - CASING DETAILS TVD TVDSS MD Name Size 250^ 713.00 676.30 713.00 9-5/8 9 5/8" 500— 500 750^ '"95/8 �� 5° 1000— 1000 10° 1250— 15° 1500- 1750— 1 2000— 2000 to - C) - O - tD 2250— E aa)) _ 25p0 0 2500— _U 1r - a) 2750— a) - 300° 3000— 3250— _ 3500 3500— 3750— 4000 4000- - 10° 4250- 4500 4500- 4750- 507 5000- 10___-- NCU#13 WP illiilIIII Iillii11111111111111liIIIii11111111III III1111111111111 [ Ili 111111 1 / 111111 II -750 -500 -250 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 3250 3500 Vertical Section at 228.52°(600 usft/in) Aurora Gas, LLC HALLIBURTON Project: Cook Inlet V Del^°s: NCU#13 Sperry Orating MorvMes Site: Nicolai Creek Unit Ground Level: 21.90 Well: NCU#13 +N/-s +E/-W Northing Easting Latittude Longitude Slot Wellbore: NCU#13 0.00 0.00 2566738.90 244026.32 61.01770166 -151.44293329 Plan. NCU#13 REFERENCE INFORMATION Co-ordinate(N/E)Reference:Well NCU413.True North Vertical(TVD)Reference NCU#13©36.70usa((21.9'GL+14.8'KB)) Measured Depth Reference:NCU#13 36.70usft((21.9GL+14.8'KB)) Calculation Method:Minimum Curvature 400— CASING DETAILS TVD TVDSS MD Name Size 713.00 676.30 713.00 9-5/8 9 5/8" 300— 200 100— , 9 5/8"._ 0— OO /°` -100— o 0 -200- - s' JO a -300— /12 o = `�J +7 -400— `/ O NCU#13[3HL -500— DD Polygon 90%cont. /s5e O of ° O -600- --700— -800— -900- -1000— -1100— T – M Azimuths to True North Magnetic North:17.21° Magnetic Field _1200— Strength:55570.3snT Dip Angle:73.85° _ Date:8/13/2013 Model:BGGM2013 I I I c ! II I I I I I I I III I i I 1 1 1 1 1 1 I l 1 1 ii I l I i lilt II 1 1 1 1 1 I I 1 1 1 I l I -1100 -1000 -900 -800 -700 -600 -500 -400 -300 -200 -100 0 100 200 300 West(-)/East(+)(200 usft/in) *Aware Ga,,LLC _ II Aurora Gas,LLC HALLIBURTON Cook Inlet Design Report for NCU#13- NCU#13 Measured Vertical Vertical Dogleg Depth Inclination Azimuth Depth +N/-S +E/-W Section Rate (usft) (•) (•) (usft) (usft) (usft) (usft) (•l100usft) 14 80 0.00 0.00 14.80 0.00 0.00 0 00 0 00 100.00 0.00 358 74 100.00 0.00 0.00 0 00 0 00 200.00 0.00 358 74 200.00 0.00 0.00 0.00 0 00 300.00 0.00 358.74 300.00 0.00 0.00 0.00 0.00 400.00 0.00 358.74 400 00 0.00 0.00 0.00 0.00 500.00 0.00 358.74 500.00 0.00 0.00 0.00 0.00 600 00 0.00 358 74 600 00 0 00 0.00 0.00 0.00 700.00 0.00 358.74 700.00 0.00 0 00 0 00 0.00 727.00 0.53 10 91 727 00 0.12 0.02 -0.10 1.98 82100 0.94 207.84 82100 -013 -0.25 0.28 1.55 915 00 4.77 208.26 914.86 -4.26 -2.47 4.67 4.07 1,009.00 5.71 222.25 1,00847 -1116 -7.46 1298 1.68 1,103 00 9.33 225.53 1,101.65 -19.96 -16 05 25.24 3.88 1,198.00 11.82 229.31 1,195.03 -31.70 -28 92 42 67 2.72 1,292 00 15.98 228.66 1,286.26 -46.53 -45 94 65.24 4.43 1,386.00 17.58 229 36 1,376 25 -64.33 -66.43 92 38 1.72 1,480.00 17.27 230 71 1,465.94 -82.41 -88.00 120.51 0.54 1,575.00 16.56 230 20 1,556 83 -100.01 -109.32 148.14 0 76 1,669 00 16.15 229.52 1,647.02 -117.07 -129.55 174.60 0.48 1,763.00 15.46 230.44 1,737.47 -133.53 -149.16 200.19 078 1,857 00 16.51 229.85 1,827.83 -150.13 -169.03 226.07 1.13 1,951.00 17.06 230.54 1,917.83 -167 50 -189.88 253.20 0.62 2,045.00 16.56 231.59 2,007.81 -184.59 -211.02 280 36 0.82 2,139.00 15.85 231.45 2,098.08 -200.91 -231.56 306.56 0.76 2,234.00 17.56 230.45 2,189.06 -218.12 -252.76 333.84 1 83 2,328.00 16.87 230.76 2,278.85 -235.78 -274.25 361.64 0.74 2,423.00 16 72 230.58 2,369.80 -253.18 -295.49 389.07 0.17 2,517.00 18.56 228.97 2,459.38 -271.58 -317.22 417.54 2 02 2,611.00 17.96 229.61 2,548.64 -290 80 -339 54 446.99 0 67 2,705.00 17.54 230.69 2,638.17 -309.16 -361.54 475.64 0.57 2,798.00 16.50 230.82 2,727.09 -326.38 -382.62 502.84 1.12 2,892 00 17.58 227.71 2,816.97 -344.37 -403.47 530 37 1.50 2,987 00 16.96 228.24 2,907.68 -363.25 -424.42 558.57 0.67 3,081.00 16.24 228.81 2,997.77 -381.04 -444.54 585.43 0 79 3,175.00 16.82 229.53 3,087.88 -398 52 -464.78 612.17 0 65 3,270 00 17.22 231.81 3,178.72 -416.14 -486.29 639.95 0.82 3,363.00 16.94 230.87 3,267.62 -433 20 -507.62 687.23 0.42 3,461.00 17.56 230.40 3,36121 -451.63 -530.08 696.27 0.65 3,555.00 16.88 232 66 3,451.00 -488.95 -551.86 724.06 1 01 3,649 00 16.01 234.70 3,541.15 -484.72 -573.29 750.56 1.11 3,743.00 16.40 234.11 3,631.42 -499 99 -594.62 776.65 0.45 3,834.00 15.97 232.32 3,718.81 -515.17 -614.94 80193 0.72 3,928.00 15.92 233.72 3,809.20 -530 70 -635.56 827 67 0 41 4,025.00 13.68 229.44 3,902.97 -546.04 -655.00 852.39 2 57 4,117.00 11.13 23165 3,992.82 -558.62 -670.24 872.14 2.82 4,210 00 10.24 229 35 4,084.21 -569.58 -683.55 889.37 1.06 4,305.00 8.69 230.30 4,177.91 -579.66 -695.48 904.99 1.64 4,40100 8.25 233.47 4,272.86 -588.40 -706.59 919.10 0.87 4,496 00 8.76 240.00 4,366.82 -596.07 -718.33 932 98 1.15 4,590.00 7.78 219.30 4,459.86 -604.57 -728.56 946 28 3.31 23 October,2013 - 12 21 Page 2 of 4 COMPASS I Aurora Gas,LLC HALLIBURTON Cook Inlet Design Report for NCU#13-NCU#13 Measured Vertical Vertical Dogleg Depth Inclination Azimuth Depth +N/-S +E/-W Section Rate (uaft) (•) (•) (usft) (usft) (usft) (usit) C1100usft) 4,684.00 8.24 230.68 4,552.95 -613.77 -737.81 959.29 175 4,779.00 8.61 234.49 4,646.93 -622.21 -748.86 973.17 0.70 4,873.00 8.69 236.32 4,739.86 -630.24 -760.50 987.20 0.30 4,964.00 11 28 242.19 4,829.47 -638.20 -774 09 1,002.66 3.05 5,024.00 11.73 246 02 4,888.27 -643.42 -784.86 1,014.18 1.48 5,071 00 11.73 246.02 4,934.29 -647.30 -793.59 1,023 29 0.00 Vertical Section Information Angle Origin Origin Start Type Target Azimuth Type +N/_S +E/-W TVD C) (uaft) (usft) (usft) User No Target(Freehand) 228.52 Slot 0 00 0 00 13 90 Survey tool nroaram From To Survey/Plan Survey Tool (uaft) (uaft) 100.00 700.00 Rig Surveys BLIND 727.00 5,024.00 Rig Surveys(MWD+SC+sag) MWD+SC+sag Casing Details Measured Vertical Casing Hole Depth Depth Name Diameter Diameter (uaft) (usft) (1 C) 713.00 713 00 9 5/8" 9-5/8 12-1/4 Wellbore Targets Target Name Dip Dip -hit/miss target Angle Dir. TVD +N/-S +E/-W Northing Easting -Shape (•) C) (uaft) (usft) (uaft) (usft) (uaft) Latitude Longitude NCU#13 BHL 0.00 358.73 4,999 70 -668.34 -762 60 2,566,087.54 243,249.20 61.01587348 -151 44723119 -actual wellpath misses target center by 75.38usft at 5071.00ustt MD(4934.29 TVD,-647.30 N,-793 59 E) -Circle(radius 150.00) Directional Difficulty Index Average Dogleg over Survey: 1.16"/100usft Maximum Dogleg over Survey: 4.43"/100usft at 1,292.00 usft Net Tortousity applicable to Plans: 0 63'/100usft Directional Difficulty Index. 4.795 Audit Info 23 October,2013 - 12 21 'age 3 of 4 COMPASS Aurora Gas,LLC HALLI3URTON Cook Inlet North Reference Sheet for Nicolai Creek Unit - NCU#13 - NCU#13 All data is in US Feet unless otherwise stated. Directions and Coordinates are relative to True North Reference. Vertical Depths are relative to NCU#13 @ 36.70usft((21.9'GL+14.8'KB)). Northing and Easting are relative to NCU#13 Coordinate System is US State Plane 1927(Exact solution),Alaska Zone 04 using datum NAD 1927(NADCON CONUS),ellipsoid Clarke 1866 Projection method is Transverse Mercator(Gauss-Kruger) Central Meridian is-150.00000000°,Longitude Origin 0.00000000°,Latitude Origin:0.00000000° False Easting:500,000.00usft,False Northing:0.00usft,Scale Reduction:0.99997456 Grid Coordinates of Well:2,566,738.90 usft N,244,026.32 usft E Geographical Coordinates of Well:61°01'03.73"N,151°26'34.56"W Grid Convergence at Surface is:-1.26° Based upon Minimum Curvature type calculations,at a Measured Depth of 5,071.00usft the Bottom Hole Displacement is 1,024.10usft in the Direction of 230.80°(True). Magnetic Convergence at surface is:-18.47°(13 August 2013,,BGGM2013) T .1(..N M MagnetiC Model: BGGM201 3 Date: 13-Aug-13 Declination: 17.21° Inclination/Dip: 73.85° Field Strength: 55570 Grid Nath is 1.26°West of Trr.e North(Grid Convergence) Magletic Nath s 17.21°East cf True Nath(Magnetic Dedi icn) Magietic Nath is 18.47°East of Grid Nath(Magnetic Convergence) To convert a True Direction to a Grid Die tan,Add 1.26° To caved a Malefic Diectbn to a True Diectian,Add 17.21°East To cavet a Mapstic Diectan to a aid Dire icn Add 18.47° 23 October,2013 - 12:21 Page 4 of 4 COMPASS Lai Crede-- ' Prt Zi 21zco Regg, James B (DOA) From: Company Man [wellsitesuper@aurorapower.com] Sent: Sunday, September 01, 2013 2:16 PM - 1 q 1 e(1 3 To: DOA AOGCC Prudhoe Bay Subject: Aurora NCU 13 PA Attachments: P9010167.JPG; P9010169.JPG; P9010170.JPG Aurora Gas NCU#13 plug and Abandonment pictures Shane McGeehan 701-651-3344 1 i. A Surface P&A-Nicolai Creek Unit#13 PTD 2121250 Photos Courtesy of Aurora Gas LLC 9/1/2013 ., v TRS •- 4 &, - NCU-13 casing cutoff and .. r' cement to surface all casings I a t ;- , fir. 460 . ,- ,?1';rargti!arks' - '‘.t'-i'7, a_ x a ��A S L . Er NI, Marker plate as installed ' dTcd%i-20'.6% ; . - AURORA GAS,LLC. NICOLAI CREEK#13 PTD #212-125 API#50-283-20167-00-00 P&A Procedure Note: Inform AOGCC inspector of plans to plug and abandon well in order to give inspector ample opportunity to witness all or part of the abandonment. Open Hole Plug Hole filled with 9.5 ppg mud. RIH w/ OEDP to 3870'MD and mix and spot a 20 bbl viscous mud pill, pull up to 3800' and place balanced cement plug across the interval 3800' to 3100' (281 cf/50 bbl, 226 sx Class G cement at 15.3 ppg) to isolate the Carya 2-4 and 2-5 sands. Pull one stand above cement, reverse out and POH 10 stands. WOC 6 hrs—RIH and tag top of plug. Set down 10,000#while pumping mud at low rate. Record top and weight. POH to 2260'. Second Open Hole Plug With OEDP to 2260'MD and mix and spot a 20 bbl viscous mud pill, pull up to 2200' and place balanced cement plug across the interval 2200' to 1400' (281 cf/ 50 bbl, 226 sx Class G cement at 15.3 ppg) to isolate the Carya 2-1 and Lower Beluga sands. Pull one stand above cement, reverse out and POH 10 stands. WOC 8 hrs—RIH and tag top of plug. Set down 10,000# while pumping mud at low rate. Record top and weight. POH. Casing/Open Hole Segregation Plug M/U a 9-5/8"cement retainer and stinger and RIH. Set retainer at 625'MD (75' above the 9-5/8" casing shoe) and establish injection below it. Un-sting from the retainer and pressure test above it to 1,500 psi for 15 minutes to ensure retainer has set and sealed. Mix and pump 20 bbls of Class G cement and displace to the stinger. Sting into retainer and pump 15 bbls through it. Un- sting from the retainer and deposit the remaining 5 bbls on top of the retainer. Pull one stand above cement, reverse out and POH, laying down all except 200' of drill pipe. After 6 hours WOC,pressure test casing and plug to 1500 psi for 30 minutes on chart. Surface Plug Install a 9-5/8" cementing wiper plug in the 9-5/8"casing and push it to 200' with drill pipe. Fill the 9-5/8"casing from the cementing plug to the surface with cement. L/D drill pipe. Wellhead Abandonment and Well Marker N/D BOP stack and drilling rig and move to the next drilling location. N/D wellhead and send in to vendor for servicing for re-use. Excavate around cellar. Remove cellar and cut off all casing strings at least 5' below ground level. Check 9-5/8" casing and outer annuli for cement to surface. Top off any voids with cement. ° �� pit.A, �1oL � Weld on marker plate as follows: 1 Plate to be 1/4" steel cut in a circle measuring 13-3/8" in diameter with the following information bead welded to one side: Aurora Gas, LLC Nicolai Creek Unit#13 PTD # 212-125 API# 50-283-20167-00 Place the plate,wording side up, over the cut-ff casing subs and weld to the outer casing string. Fill in excavation, including casing stubs w/ marker plate, level pad and clean up all debris after rig and other drilling equipment has been demobed. Ed Jones (8/26/13) Rev 2 Surface Plug: 19 bbl(86 sx) i .��> r .' s . Class G Cement at 15.3 ppg, Aurora Gas, LLC r' {'�. ,1 ' • T' � °i' `'~ est bottom at 203',top at 11. •r.* . • ..`•• ' cut-off,5'below GL NICOLAI CREEK UNIT #13 PLUG and 13-3/8" Structural ABANDON—Proposed Conductor driven to 95'GL ,£ Wellbore Diagram r w•'� •' 9-5/8" 36#Surface Casing set at August 2013 i -`''' e ,i •4 * �'!„ .• 708 and Cemented w/92 bbl(302 • .-•:.' • sx)12.0 ppg LW Class G Accelerated Cement Drill 12-1/4"Hole to 710' - - `► ' ;, :� • to •• r s ♦ '• •> 9-5/8"Casing Plug:Retainer set at Preliminary Formation Tops ~'' ` 625'and cemented with 20 bbl (90 Beluga- 700'MD/TVD - sx)Class G Cement at 15.3 ppg,15 Top Tyonek-1912' bbl below retainer and 5 bbl above. Carya 2-1 1996'MD Est bottom of plug is 850'and est. Carya 2-2-2472' topof plugis 560'. Carya 2-3-2765'MD Carya 2-4-3380'MD Carya 2-4.2--3480'ME Carya 2-5-3632'MD • • `� . Second Plug: 50 bbl(226 sx) Carya 2-6 4056'MD Beluga ti• • • `-,- - .! 15.3G cement w/topat Carya 2-7--4378'MD ppg t• • 1400' (to be tagged)and est. • • • 4 • bottom at 2200' Carya 2-1 •`� - Wellbore filled with Carya 2-3 9.5 ppg Mud Carya 24.1 . =.;+ . First Plug: 50 bbl(226 sx)15.3 •ti • ' : Schwartz, Guy L (DOA) From: Regg,James B (DOA) Sent: Monday,August 26, 2013 5:10 PM To: Ed Jones Cc: Schwartz,Guy L(DOA); Bettis, Patricia K(DOA) Subject RE: NC 13 PA Procedure.doc Patricia reviewed the logs and we discussed. She did not find anything of concern that would require changes to plugging program. I realize you are a little tight on cement (pumping approx 130 bbls as designed; have 150 bbls), but I have slight concern regarding open hole plugs. Volumes you propose are pretty close to gauge hole volumes. Is gauge hole representative? I would agree with rounding up volumes for 2 open hole balanced plugs to 50 bbls each. Other than that, procedure is ok. You have verbal approval to proceed with abandonment of Nicolai Creek#13 (PTD 2121250). Contact AOGCC Inspector for opportunity to witness pressure test of Casing/Open Hole Segregation plug at 9- 5/8" shoe and surface P&A (casing cutoff, cement to surface, marker plate installation). Thank you. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Ed Jones [mailtojejones:p auror power.cor ] Sent: Monday, August 26, 2013 4:20 PM To: Regg,James B (DOA) Cc: 'Company Man'; 'Jon West' Subject: FW: NC 13 PA Procedure.doc Jim, I sent this in to Guy this morning, and not hearing back from him, I called Patricia this afternoon—she said that she was going to talk to you about it, so I assume that she has—here is the proposed procedure. Patricia has the logs. Please let me know if you need more info. The rig is standing by, awaiting approval. Thanks, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr., Ste 200 Houston,TX 77072 281-495-9957 (0) 713-899-8103 (C) From: Ed Jones [ma Ito:JcJones a aurorapower.corn] Sent: Monday, August 26, 2013 12:09 PM To: 'Schwartz, Guy L(DOA)' Cc: 'Bettis, Patricia K(DOA)'; 'Davies, Stephen F(DOA)'; 'George Pollock'; 'Company Man'; 'Jon West'; 'Stephen Lauper' Subject: NC 13 PA Procedure.doc t Guy, Here is a more detailed P&A procedure for the Nicola' Creek#13—please let me know of any requested change or questions or need more info. As I mentioned in my email earlier this AM, the rig is standing by,waiting for approval. Please call me with questions(I will be away from email for a couple of hours this AM, so please reply all to any email). Thanks, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr.,Ste 200 Houston,TX 77072 281-495-9957(0) 713-899-8103(C) i oF • w�.\I%%s� THE STATE Alaska Oil and Gas ��'� °fALAsKA Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue Opau.• Y,P Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 J. Edward Jones President Aurora Gas, LLC 1400 West Benson, #410 Anchorage, AK 99503 Re: Nicolai Creek Field, South/Beluga Undefined Gas Pool,Nicolai Creek Unit#13 Sundry Number: 313-469 Dear Mr. Jones: 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 ;i4 / Chair DATED this 30 day of August, 2013. Encl. STATE OF ALASKA ,�,r RECEIVED ALASKA OIL AND GAS CONSERVATION COMMISSION AUG 2 8 2013 APPLICATION FOR SUNDRY APPROVALS fl 20 AAC 25.280 AO( CC 1.Type of Request: Abandon❑Q • Plug for Redrill III Perforate New Pool IJ 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: 11 AURORA GAS, LLC Exploratory ❑ Development [, 212 125• 3.Address: Stratigraphic ❑ Service Ill 6.API Number: 1400 WEST BENSON,#410,ANCHORAGE,AK 99503 50-283-20167-00-00 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? NICOLAI CREEK Will planned perforations require a spacing exception? Yes ❑ No ❑ UNIT #13 . 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL-391472, Seg. 1 ' NICOLAI CREEK UNIT South Undel/Beluga Undef. Gas ' 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): •5071 •4934 •5071 • 4934 Casing Length Size MD ND Burst Collapse Structural Conductor 95' 13-3/8" 95'GL 95'GL 3450 1950 Surface 708' 9-5/8" 708'KB 708'KB 3520 2020 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 12.Attachments: Description Summary of Proposal E, 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 2, Service ❑ 14.Estimated Date for 8/26/2013 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: (email) Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned Q• Commission Representative: Jim Regg 8/26/2013 GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Ed Jones Email hones, aurcrapower Cpm Printed Name J. Edward Jones Title President Signature rm7/1/4/2/...1. Phone 713-899-8103/907-277-1003 Date 8/27/2013 • -' COMMISSION USE ONLY Conditio•approval: Notify Corn • • n so that a representative may witness Sundry Number: Plug Integrity lki/ BOP Test ❑,J Mechanical Integrity Test El Location Clearance 2/ Other: r'Phe , GZO C Gc PP%-.x �1niCQ-S i''1 si✓r—u/I/I (• 1,,),-/L-1 /_)/e. . RBDM& OCT 1 0 20it Spacing Exception Required? Yes [I] NoI Subsequent Form Required: d — y 0 7 Of,tF APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: S -30—/3 v t Li 73 Submit Forrn and a,.. \-17 Form 10-403£vised 10/2012) Appre iii o R I G I N a the date of approval. Attachments in Duplicate '\t'�'a`6 ��c�J(av CfYe-fes � 13 P 2_izizzco Regg, James B (DOA) From: Ed Jones [jejones@aurorapower.com] Sent: Monday, August 26, 2013 5:21 PM (02(4(02b11?j To: Regg, James B (DOA) Cc: Schwartz, Guy L (DOA); Bettis, Patricia K(DOA); 'Company Man'; 'Jon West'; 'George Pollock' Subject: RE: NC 13 PA Procedure.doc Jim, Thank you. Regarding our cement volumes, we do have a Halliburton Borehole Volume Log, based on the Triple Combo caliper, on which the plug volumes were based—nonetheless, we will use 50 bbl per balanced plug. We will proceed this evening (and the process will obviously take a couple of days). Regards, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr.,Ste 200 Houston,TX 77072 281-495-9957 (0) 713-899-8103 (C) From: Regg, James B (DOA) [mailto:jim.regg@alaska.gov] Sent: Monday, August 26, 2013 8:10 PM To: Ed Jones Cc: Schwartz, Guy L(DOA); Bettis, Patricia K (DOA) Subject: RE: NC 13 PA Procedure.doc Patricia reviewed the logs and we discussed. She did not find anything of concern that would require changes to plugging program. I realize you are a little tight on cement(pumping approx 130 bbls as designed; have 150 bbls), but I have slight concern regarding open hole plugs. Volumes you propose are pretty close to gauge hole volumes. Is gauge hole representative? I would agree with rounding up volumes for 2 open hole balanced plugs to 50 bbls each. Other than that, procedure is ok. You have verbal approval to proceed with abandonment of Nicolai Creek#13 (PTD 2121250). Contact AOGCC Inspector for opportunity to witness pressure test of Casing/Open Hole Segregation plug at 9- 5/8" shoe and surface P&A(casing cutoff, cement to surface, marker plate installation). Thank you. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-7934236 From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Monday, August 26, 2013 4:20 PM To: Regg, James B (DOA) Cc: 'Company Man'; 'Jon West' Subject: FW: NC 13 PA Procedure.doc 1 Jim, I sent this in to Guy this morning, and not hearing back from him, I called Patricia this afternoon—she said that she was going to talk to you about it, so I assume that she has—here is the proposed procedure. Patricia has the logs. Please let me know if you need more info.The rig is standing by, awaiting approval. Thanks, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr., Ste 200 Houston,TX 77072 281-495-9957(0) 713-899-8103 (C) From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Monday, August 26, 2013 12:09 PM To: 'Schwartz, Guy L (DOA)' Cc: 'Bettis, Patricia K (DOA)'; 'Davies, Stephen F (DOA)'; 'George Pollock'; 'Company Man'; 'Jon West'; 'Stephen Lauper' Subject: NC 13 PA Procedure.doc Guy, Here is a more detailed P&A procedure for the Nicolai Creek#13—please let me know of any requested change or questions or need more info. As I mentioned in my email earlier this AM,the rig is standing by,waiting for approval. Please call me with questions (I will be away from email for a couple of hours this AM, so please reply all to any email). Thanks, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr.,Ste 200 Houston,TX 77072 281-495-9957(0) 713-899-8103(C) 2 AURORA GAS, LLC. NICOLAI CREEK#13 PTD #212-125 API #50-283-20167-00-00 P&A Procedure Note: Inform AOGCC inspector of plans to plug and abandon well in order to give inspector ample opportunity to witness all or part of the abandonment. Open Hole Plug Hole filled with 9.5 ppg mud. RIH w/ OEDP to 3870'MD and mix and spot a 20 bbl viscous mud pill, pull up to 3800' and place balanced cement plug across the interval 3800' to 3100' (250 cf/44.6 bbl, 202* sx Class G cement at 15.3 ppg) to isolate the Carya 2-4 and 2-5 sands. ✓ Pull one stand above cement, reverse out and POH 10 stands. WOC 6 hrs—RIH and tag top of plug. Set down 10,000# while pumping mud at low rate. Record top and weight. POH to 2260'. Second Open Hole Plug With OEDP to 2260'MD and mix and spot a 20 bbl viscous mud pill, pull up to 2200' and place balanced cement plug across the interval 2200' to 1400' (270 cf/ 48.1 bbl, 218* sx Class G ✓ cement at 15.3 ppg) to isolate the Carya 2-1 and Lower Beluga sands. Pull one stand above cement, reverse out and POH 10 stands. WOC 8 hrs—RIH and tag top of plug. Set down 10,000#while pumping mud at low rate. Record top and weight. POH. Casing/Open Hole Segregation Plug M/U a 9-5/8" cement retainer and stinger and RIH. Set retainer at 625'MD (75' above the 9-5/8" casing shoe) and establish injection below it. Un-sting from the retainer and pressure test above it to 1,500 psi for 15 minutes to ensure retainer has set and sealed. Mix and pump 20 bbls of Class G cement and displace to the stinger. Sting into retainer and pump 15 bbls through it. Un- sting from the retainer and deposit the remaining 5 bbls on top of the retainer. Pull one stand above cement, reverse out and POH, laying down all except 200' of drill pipe. After 6 hours WOC, pressure test casing and plug to 1500 psi for 30 minutes on chart. Surface Plug Install a 9-5/8" cementing wiper plug in the 9-5/8" casing and push it to 200' with drill pipe. Fill ✓ the 9-5/8" casing from the cementing plug to the surface with cement. L/D drill pipe. Wellhead Abandonment and Well Marker N/D BOP stack and drilling rig and move to the next drilling location. N/D wellhead and send in to vendor for servicing for re-use. Excavate around cellar. Remove cellar and cut off all casing strings at least 5' below ground level. Check 9-5/8" casing and outer annuli for cement to surface. Top off any voids with cement. Weld on marker plate as follows: 1 Plate to be 1/4" steel cut in a circle measuring 13-3/8" in diameter with the following information bead welded to one side: Aurora Gas, LLC Nicolai Creek Unit#13 PTD # 212-125 API# 50-283-20167-00 Place the plate, wording side up, over the cut-ff casing subs and weld to the outer casing string. Fill in excavation, including casing stubs w/ marker plate, level pad and clean up all debris after rig and other drilling equipment has been demobed. *NOTE: since we have more than enough cement, we may want to round these cement volumes up to 45 and 50 bbl, respectively. Ed Jones (8/26/13) 2 Regg, James B (DOA) From: Bettis, Patricia K(DOA) Sent: Monday, August 26, 2013 3:12 PM To: Regg, James B (DOA) Subject: FW: Request for Approval to Abandon Nicolai Creek#13 Attachments: NICOLAI CREEK#13 Formation Log 1-5071' MD.pdf; NCU_13_COMP_25AUG13.pdf; NCU # 13 Surveys.txt From: Ed Jones [mailto:jejones@3aurorapower.com] Sent: Monday, August 26, 2013 8:35 AM To: Schwartz, Guy L (DOA) Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA); 'George Pollock'; 'Robert Pledger'; 'Company Man' Subject: Request for Approval to Abandon Nicolai Creek #13 Guy, We have drilled the Nicolai Creek Unit#13 to 5071' MD and 4934'TVD, have logged it, and see no apparent pay, so we propose that the well be abandoned—see Triple Combo and Mud logs and directional survey attached. We also ran SFTT(express pressure tool) and the intervals tested appeared to have water gradients. The well is believed to be fault separated from the offsetting wells (in order of closest proximity): NCU#9,#2, and #1B, crossing the fault about 1300' (to be separated below that). However, pressures in the Beluga at 1046' MD appeared to be virgin, but there may be some slight depletion in the Beluga sand at 1561', which is correlative to a productive interval in#9. Otherwise, pressures seemed un-depleted (in the sands at 4300', 2400', 2100', and 1900'). The deepest open perfs (unplugged back) in the offsetting wells would be in the NCU #1B above 3400'TVD in the Carya 2-5. Therefore, we propose an abandonment procedure similar to that done in our NC#14 well: a balanced plug from 3800' to 3100', a second balanced plug from 2200' to 1450', a plug under a retainer at the surface casing shoe, and a surface plug. Please let me know if you would recommend otherwise. We have about 150 bbl of Type G cement on location. Our preliminary estimated tops are: Beluga from surface casing to 1912', which is top of Upper Tyonek(and Carya 2-1),Carya 2-2 at 2470', Carya 2-3 at 2766', Carya 2-4 at 3088', Carya 2-4.2 at 3480', Carya 2-5 at 3695', and Carya 2-6 at 4056'. I will have a more specific procedure to you shortly. The rig is standing by, as we finished logging last night at midnight. Thanks, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr.,Ste 200 Houston,TX 77072 281-495-9957(0) 713-899-8103 (C) 1 ),I j/j's THE STATE Alaska Oil and Gas F��+s��'� °fALASKA Conservation Commission wh GOVERNOR SEAN PARNELL 333 West Seventh Avenue 01, AL 8 1• Anchorage, Al Main: 99501-3572 501- 3572 Fax: 907.276.7542 J. Edward Jones President Aurora Gas, LLC 1400 West Benson Blvd., Suite 410 Anchorage, AK 99503 Re: Nicolai Creek Field, Beluga Undefined Gas Pool, Nicolai Creek Unit #13 Aurora Gas, LLC Permit No: 212-125 Surface Location: 1724' FNL, 2607' FEL, SEC. 29, T11N, R12W, SM Bottomhole Location: 2394' FNL, 1908' FWL, SEC. 29, T11N, R12W, SM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce is contingent upon issuance of a conservation order approving a spacing exception. Aurora Gas, LLC assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy . Foerster Chair DATED this( day of September, 2012. cc: Department of Fish & Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o end. (via e-mail) STATE OF ALASKA RECEIVED AL A OIL AND GAS CONSERVATION COMM. ,ION AUG 15 2012 PERMIT TO DRILL 20 AAC 25.005 n GC 1 a.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1 c.Speci if welf is propose for: Drill 0 - Redrill ❑ Stratigraphic Test [] Development-Gas 0 _ Service-Supply El Multiple Zone 0 • Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11.Well Name and Number: AURORA GAS, LLC Bond No. NZS 429815 - NICOLAI CREEK UNIT#13 ' 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 1400 WEST BENSON BLVD,STE 410,ANCHORAGE,AK 99503 MD: 5100' • TVD: 5000' • Nicola/Creek Unit 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): South Undefined Gas/ • Surface: 1724'FNL,2607'FEL,SEC.29,T11N,R12W,S.M. ADL-391472, Seg. 1 Beluga Undefined Gas Top of Productive Horizon: 8.Land Use Permit: X13.Approximate Spud Date: 1724'FNL,2607'FEL,SEC.29,T11N,R12W,S.M. None 9/15/2012 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 2394'FNL,1908'FWL,SEC.29,T11N,R12W,S.M. 1587 2607' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 37 feet 15.Distance to Nearest Well Open Surface: x-244,026 ' y- 2,566,739 • Zone-4 GL Elevation above MSL: ' 21 feet to Same Pool: 2200' 16.Deviated wells: Kickoff depth: 800 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 30 degrees Downhole: 2550 • Surface: 2020 • 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole _ Casing Weight Grade Coupling Length MD ND MD ND (including stage data) driven 13-3/8" 68 or 72# Structural welded 80' 16' X16' 96' 96' driven-not cemented 12-1/4" 9-5/8" 36# J or K-55 LTC 700' 0' 0 700' 700' 204 sx/453 cf Lightwt,12.0 ppg 7-7/8" 5-1/2" 15.5# J-or K-55 LTC 5100' 0 0 5100' 5000' 146 sx/361 cf LWt Lead at 12.0 ppg+ 586 sx/792 cf Tail at 14.8 ppg 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): 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❑ Drilling Program 0 Time v.Depth Plot 0 Shallow Hazard Analysis Diverter Sketch❑ Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name J. EEdward Jones /- Title President i C' Signature ,„>-- , ,--2-y� Phone 281-495-9957 Date 8/13/2012 Commission Use Only Permit to Drill 7 API Numb 7�.`/ - ' _ _ Permit Approval /� See cover letter for other Number: �f - i ZS 50- �`2 / I -C- �-C Date: /�\`v 1'1?/ requirements. Conditions of approval: If box is checked,well not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: RI" Other: 3W) /OS:. 80e (e,'t'• Samples req'd: Yes 0 No❑ Mud log req'd: Yes [f No❑ 4 ,c pSi, /4t•tei. ... f •S H2S measures: Yes❑ Nog Directional svy req'd: Yes Q No❑ 71E /2 " D;j f-pie Ve 'f Li _ ...pe,o '-e.9 /24-4.. 0-0 4,44 zS c33S(c)(I)(a,) < SVS P/ce.„4%4 4..ppCO0..J ,u,. za,{/tc. z,-.z` S(a)(() PPROVED BY THE COMMISSION DATE: 9 l�- 1° ,COMMISSIONER �(•(3•Iv i,�v,4_ORIGINA Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate N. Aurrora Gas, LLC RECEIVED AUG 152012 August 13, 2013 AOGC^ Ms. Cathy Foerster, Chair V Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Nicolai Creek Unit#13 Dear Ms. Foerster: Aurora Gas, LLC hereby applies for a Permit to Drill an onshore gas development well in the Nicolai Creek Field south of the village of Tyonek. The well is planned as a directional well drilled from a new pad to the Upper Tyonek Formation to test for gas. A secondary target is the shallower Beluga Formation. The AWS #1 rig may be used to drill this well, pending availability. The rig's well control systems are on file with the Commission. If another rig is contracted, this information will be provided. 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) Fee of$100.00 payable to the State of Alaska. 3) A plat showing the surface location of the well. 4) A Time versus Depth plot(in Drilling Program). 5) Proposed casing program. 6) Proposed cementing program(in Drilling Program). 7) Proposed drilling fluid program(in Drilling Program). 8) Proposed summary drilling procedure (in Drilling Program). 9) Summary of Drilling Hazards ((in Drilling Program). 10) Schematic of the proposed wellbore and completion. (in Drilling Program). 11) Aurora Gas does not anticipate the presence of H2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during drilling and completion operations. 12) The following are Aurora Gas' designated contacts for reporting responsibilities to the Commission: 6051 North Course Drive, Suite 200•Houston,Texas 77072•(281)495-9957•Fax(281)495-1473 1400 West Benson Blvd., Suite 410•Anchorage,Alaska 99503• (907)277-1003•Fax(907)277-1006 Ms. Cathy Foerster, 8/13/12 Page 2 1) Completion Report J. Edward Jones, President (20 AAC 25.070) 281-495-9957 2) Geologic Data and Logs J. Edward Jones, President (20 AAC 25.071) 281-495-9957 If you have any questions or require additional information, please contact me at (281) 495-9957. Sincerely, AURORA GAS, LLC v J. Edward Jones �. President enclosures Aurora Gas, LLC NCU#13 Drilling Program NICOLAI CREEK UNIT #13 Nicolai Creek Unit#13 is a 5100' MD/ 5000' TVD grass-roots well targeting Beluga and Tyonek Gas Production. It is located in the Nicolai Creek Gas Field, directionally drilled from a new pad, located about 2700' northeast of the Nicolai Creek#9 well,to a BHL +/-1017' southwest of the surface location. The BHL is to be more than 1865' from the#9 well, but / believed to be fault separated. It will target Beluga and Upper Tyonek Carya 2-1 thru 2-6 sands that have produced about 5 BCF from the Nicolai Creek Field. Pre Rig work 1. The site was surveyed earlier this year for the Nicolai Creek#13—pad GL elevation is about . 21' above MSL. The conductor will be driven to 80' or more from GL prior to drilling. 2. A new 200' X 300' gravel pad will be constructed prior to drilling(pad size may increase if rig other than AWS #1 is used). About 4500' of new gravel road will be required to access the pad. Also,plans are to build sufficient emergency cuttings containment for planned drilling program, and build containment for diverter line. 3. Install cellar&mousehole. Cut off conductor as needed to accommodate diverter system. Drilling Procedure 1. File & insure all necessary permits and applications are in place. 2. MIRU AWS #1 (or other rig, as available) in drilling configuration. 80+' of 13-3/8" conductor will have been pre-installed. Install 13-5/8" VG LOK head. 3. Rig up diverter&mud loggers. Test& calibrate all PVT/gas sensor equipment. Provide 48-hr notice to AOGCC inspectors for chance to witness diverter test. 4. Notify AOGCC &pertinent agencies when ready to start drilling operations. 5. Prepare spud mud system/weight up to 10.0 ppg. Load, strap & drift 700'+1 joint of 9- 5/8" J- or K-55 36# LTC surface casing. Drift all casing with 8" drift on rack before running. 6. PU 12-1/4" mill tooth bit & drill to -700', using stabilized BHA. Watch for gas in shallow coals and sands. Attempt to TD in siltstone or claystone, avoid setting surface shoe in a coal bed or sand. Use single shot survey on slickline unit before reaching 500'. If possible, adjust TD to put cement head at floor. 7. Make wiper trip to conductor to condition hole for running 9-5/8" surface casing. Make single shot survey after reaching TD. POOH, LD 12-1/4" BHA. 8. Run & cement new 36# J- or K-55 9-5/8" LTC casing @ 700', installing 1 centralizer / joint centered on the 1St 4 joints above shoe, & 1 centralizer every 2nd joint across the collars there after. Shoe joint connection at float shoe and float collar must be Baker- Prepared by Ed Jones Page 1 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program Locked. Cementing will be single stage using 12.0 ppg gas-tight accelerated light-weight Type I cement at 100% excess volume. Overdisplace by 1 bbl if plug doesn't bump. Displacement should be measured volumetrically (tank gauges), not based on pump strokes. Be prepared to treat cement returns with retarder. Leave 6" to 18" of unretarded cement in cellar to seal bottom. 9. RD cementers, nipple down diverter, cut casing and install 11" 3M wellhead. W.O.C. 10. RU and test 11" 3M BOP stack and 5M choke manifold. Test stack and surface equipment to 3,000 psi. Pressure test 9-5/8" casing to 1,500 psi for 15 minutes or as required on approved Permit to Drill. Mud weight to drill out should be at least 10 ppg at this point. 11. PU 7-7/8" Mill Tooth Bit & PU w/ collars, stabilizers, circ sub, drilling jars, 4" HWDP, as per BHA program (all of directional assembly except mud motor and MWD assembly). Drill out shoetrack. Swap out mud system from spud mud to 10.0 ppg EZ (3% KC1-polymer) mud system, drill 20' new formation. Pull back into shoe & perform P`°` FIT/LOT up to 16.0 ppg EMW maximum with low volume test pump. Record results. 12. POH and PU remainder of directional assembly (mud motor and MWD), RIH and drill 7- 7/8" hole. Monitor well and volumes carefully. Be prepared to shut well in and weight up immediately if flow or excessive gas build up in mud is noticed. Monitor hole cleaning and drilling trends, prepare to short trip if needed. Anticipated mud weights required are 9.5 ppg — 10.5 ppg. If no significant mud logs shows are seen by 1600', gradually cut back mud weight to 9.5 ppg. Do not exceed fracture gradient determined in step 11. Finish drilling to 5100' MD/ 5000' TVD, or other depth as directed by Aurora Gas geologist (may be shallower depending upon top of Carya 2-6). If possible, adjust TD to put cement head on floor. While drilling, load, tally & drift 5-1/2" J- or K-55 15.5" LTC casing on racks. 13. Condition hole, short trip and prepare for running wireline logs. 14. POOH, LD MWD, mud motor, and other tools as recommended by DD, rack back drillstring. RU wireline BOP's and lubricator and logging tools. Log 9-5/8" cased hole section w/gamma ray sensor, Log OH section with logging suite including resistivity and porosity logs as directed by Aurora Gas. RD wireline. 15. RIH w/ 7-7/8" non-directional assembly (w/o motor or MWD) to TD & condition hole for running 5-1/2" casing. Ensure cementing head has proper connections or proper cross-over and is available for quick rig up. 16. POOH while laying down drill i e & BHA, RU to run casing. Verifycementer's • equipment is ready. 17. Install 5-1/2"pipe rams and test. . 18. Run 5000" 15.5# J- or K-55 LTC casing, installing 1 centralizer per joint centered on 1St 4 joints above shoe, 1 centralizer every2nd joint in open hole & every3rd joint inside surface casing (use Turbolator centralizers below/above each pay sand and where inclination exceeds 10 degrees). Shoe joint connection at float shoe, float collar & stage tool landing collar must be Baker-Locked (80' shoetrack). While running casing, fill every 3rd joint. Be prepared to wash to bottom. Prepared by Ed Jones Page 2 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program 19. RU cementers, cement per attached cementing program from TD to surface. A sufficient amount of accelerated 12.0 ppg gas-tight light weight Class G lead cement will be pumped to cover from 1500' up thru the annulus from the 9-5/8" shoe to surface. This will be followed by sufficient amount of 14.8 ppg Type I tail blend cement to cover from TD back to 1500'. Excess will be calculated using caliper log data—top of tail slurry will be determined following evaluation of the logs. Displacement is to be measured volumetrically (tank gauges), not relying on pump strokes. Plug will be bumped with clean 3% KC1 brine. If possible reciprocate pipe while displacing cement. Land casing & WOC. 20. RD cementers, nipple down stack, land casing in slips & cut casing. 21. Install 11" X 7-1/16" tubing spool, 7-1/16" X 11" DSA, mud cross and reinstall BOP stack. Pressure test BOP and surface equipment to 3,000 psi. Pressure test casing to 2,000 psi for 15 minutes and record results. 22. Install 2-7/8" pipe rams. 23. RIH w/ bit & casing scraper on 2-7/8" tubing to float collar. Displace well w/ filtered KC1/NaC1 brine (wt. to be determined from XPT data). Continue to clean brine for perforating by running through centrifuge & filtering. POOH. Strap tubing on TOH to validate tally. A MORE DETAILED PROCEDURE WILL BE PROVIDED AT THIS POINT INCLUDING PERFS U:«t 24. PU wireline BOP's & lubricator, pressure test all against casing to 1500 psi (or higher if XPT indicated higher gradients). PU GR/CBL(USI-CMT)/CCL & log 5-1/2" casing to G8� surface. LD D logging tools & PU perforating guns, RIH to depth as determined from OH logs and perforate zones of interest. Watch for pressures in casing after shooting. POOH, LD perf guns, RD wireline. 25. RIH w/ bit & casing scraper on 2-7/8" tubing to float collar. Circulate perforating debris from hole. Continue centrifuging & filtering brine until cleaned up. POOH. LD bit & scraper. RU Aurora well test unit, including flare stack. 26. Pick up & assemble completion assembly which will consist of mechanical set packer w/ on-off tool for sump packer to be set above deepest perforated zone, then 3 (or 4) hydraulic packers w/ sliding sleeves between packers and an expansion joint between 2nd and 31d hydraulic packers—all sliding sleeves are to be closed and a pump-out ball-seat below deepest packer. RIH with completion on new 2-7/8" 6.5# J-55 8 rd tubing & set completion at appropriate depth, filling tubing as running. Space out, hang off in tubing head & lock down. Drop ball and pressure tubing to 3000 psi (or as required) to test and to set packers. Install BPV. ND BOP. NU and test tree. 27. Pull BPV. 28. Swab in first completion and begin flow test—get stabilized rate (1 hour minimum). Shut in well & record pressure buildup until stabilized with no change in one hour. DO NOT KILL, but RU Pollard and run PX-plug and set in X nipple in on/off tool below deepest sliding sleeve. Prepared by Ed Jones Page 3 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program 29. Add needed KC1 water cushion to tubing if needed, (1000' above sliding sleeve or as determined by engineer). Open deepest sliding sleeve. Test well as per Step 29. DO NOT KILL, but close sliding sleeve. 30. Repeat Step 30 for remaining shallower intervals (2 or 3). 31. Open zones for initial production (depending upon pressures and test results—likely the 2-4.2 and deeper)—flow to clean up. Shut in. Set BPV in tree or x-plug above sliding sleeves in well. Release rig, RD, and move rig. 32. Pull BPV or plug. Run 4-point test of initial production zone as per Procedure provided at that time. RD test unit. 33. Clear& clean location. Hand well over to production. 34. File completion reports with proper agencies. Site Access Nicolai Creek Unit#13 will be accessible via 4500' of new gravel roads coming off existing road between Shirleyville and the Granite Point Tank Farm. Rig Aurora Well Service, Rig No. 1 (AWS 1) may be used to drill the Nicolai Creek Unit #13 well, depending upon availability. The Alaska Oil & Gas Conservation Commission has information on this rig and equipment as it has been in use for the last 10 years on other Aurora Gas operations. The pits, BOP system & mud equipment configuration will be the same as that used for previous work. (If another rig is contracted, this information will be revised). Survey Program The 12-1/4" surface hole will be drilled vertically and the survey program will consist of multi- shot survey and supplemented with single-shot surveys as required to be obtained at 500' intervals in accordance with rules laid out in 20 AAC 25.050 (a) (1) & (2). The 7-7/8" production hole will be drilled directionally utilizing MWD; A FMI-log directional tool (continuous reading) will be utilized at the end of the well to determine BHL (direction and deviation)with intervals as needed,per AAC 25.050 (a)(1). Logging Program Mud loggers will be on site for the duration of drilling activities. Schlumberger may provide wireline logging services as proposed below (work will likely be bid out, but the program will be equivalent to the following): Prepared by Ed Jones Page 4 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program Nicolai Creek Unit#13 Proposed Logging Program Well Section Depths(ft) OH CH Log Type 12-1/4"Surface 0'—700' Ai N/A: No open-hole logs planned for surface at this time. GR only in cased hole. 7-7/8"Production 700-5100' Platform Express: Array Induction,Compensated Neutron, Hole Litho-Density, SP,GR,and possibly DSI and/or FMI/DM.. Also MDT or XPT and Sidewall cores. 5-1/2" Csg surface—5000' GR/CBL/CCL(USI-CMT) Surface—TD Open 100'—5100' Mud Logging Services Hole BOP Equipment Aurora Gas, LLC will use the same BOP system they have been using for the last (7) years which will consist of the following: 12-1/4" Surface Hole While drilling the 12-1/4" surface hole, a 13-5/8" 5M annular w/ 13-5/8" diverter spool & 12" diverter line will be used: an exception to 20 AAC 25.035 (c)(1)(A), requiring that the .----- diverter line outlet size be at least 16" diameter or (B) at least as large as the hole size being drilled, is requested. 7-7/8" Production Hole An 11" 3000 PSI WP Schafco (Shaffer Equivalent) BOP system will be used which is configured with an 11" 3000 PSI WP annular preventer, (1) 3000 PSI WP double gate with a set of pipe rams installed sized to fit the pipe being run and a set of blind rams and (1) 11" 3000 PSI WP rated drilling spool. BOP tests will be performed to 3000 psi. The annular preventer will be './ tested to 1500 psi. Again, this is the same equipment Aurora has been using all along and information on the system is on file at the AOGCC. (This section will be revised if another rig is contracted). Drilling Fluids The drilling fluids will be furnished by Halliburton, Baker, or MI, all who have extensive experience with drilling activities in this area. An experienced mud engineer will be on site at all times while drilling to monitor properties and make recommendations. Drilling Fluid Properties While Drilling 12-1/4" interval to 700' Glacial Wash and Beluga Formation Base Fluid Fresh or produced water Density 10-11 ppg PV 10-30 YP 30-40 API Filtrate not controlled Prepared by Ed Jones Page 5 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program Total Solids 15 —25 % Bentonite Gel (Aquagel) mud system Drilling Fluid Properties While Drilling 7-7/8" interval to 5000' Beluga and Tyonek Formations Base Fluid 3% KCL Density 9.5 — 11.0 ppg PV 22—30 YP 20-30 API Filtrate < 5 Total Solids 10— 15 % Polymer(EZ Mud) mud system Drilling Fluid Handling System Shale Shaker, Mud Cleaner, Centrifuge, PVT monitors Drilling Waste Disposal The cuttings will be dried, put into Super Sacks and transported to the Kenai Borough landfill on the Kenai Peninsula. Drilling mud will be held in tanks for reuse or injection at the Aspen Disposal Well. Brine will be placed in tanks for use in future wells or injected into the Aspen 1 Disposal well. Casing / Cementing Program All casing is new. Analysis (attached) indicates casing program as designed provides adequate safety factors for this well. All casing strings with the exception of the 13-3/8" conductor will be cemented in place using industry standard casing cementing techniques utilizing a casing shoe, float equipment, top and bottom wiper plugs and centralizers installed as needed. 13-3/8" 68# or 72#K-55 Conductor Analysis and Cementing Program The conductor for Nicola Creek Unit#14 will be installed by drilling/driving the 13-3/8" pipe to 80+' from GL/96' RKB. Joints are welded together and a drilling shoe was welded to the bottom -' joint. No cementing is required. 9-5/8" 36#J-or K-55 LTC Surface Casing Analysis and Cementing Program The 9-5/8" surface casing will be cemented from the proposed setting depth of 700' to surface with an accelerated 12.0 ppg accelerated gas-tight light-weight Type I cement w/ poz powder, glass spheres, and gas control. Capacities: Prepared by Ed Jones Page 6 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program 9-5/8" Csg. Capacity= .0773 bbl/ft 9-5/8" Csg X 13-3/8" Conductor Capacity=0.0597 bbl/ft 9-5/8" Csg. x 12-1/4" OH Capacity= .0558 bbl/ft System Volume: 9-5/8"X 13-3/8"Annulus: 80 X 0. 0597=4.8 bbl 12-1/4" OH x 9-5/8" Csg: (700'-80) x .0558 bbl/ft x 2 (100 %excess) =69.2 bbls Shoe Jt: 47' x .0773 bbl/ft= 3.6 bbls Total Surface Cement Volume=77.6 bbl Actual volumes to be re-calculated at time of running casing due to potential variation in actual depth from planned. Cement System Weight(ppg) bbl cf sx Accelerated Light Type I 12.0 77.6 453 204 Yield 2.14 cf/sx Please see attached 9-5/8" surface casing analysis and specifications. 5-1/2" 15.5#K-55 LTC Production Casing Cementing Program The 5-1/2" production casing will be cemented in fully from the proposed set depth of 5000' to -V surface. A 12.0 ppg accelerated lead light-weight Class G cement (2.47 cf/sk yield) followed with a 14.8 ppg Type I tail cement (1.35 cf/sk yield) system will be used. (The top of the tail may be adjusted upward following the logging program, dependent upon the location of upper most potential pay). This program is designed to insure the intended perforating / production intervals are isolated with tail blend (except possible shallow Beluga, so Lead cement will also have sufficient strength for perforating). Capacities: 5-1/2" 15.5#csg capacity= 0.0238 bbl/ft 5-1/2"csg X 7-7/8" OH capacity= .0309 bbl/ft 5-1/2"csg X 9-5/8" 36# annular capacity= .0479 bbl/ft Lead System: 9-5/8" x 5-1/2" Csg: 700' + (1500-700') 7-7/8" open hole 700' x .0479 bbls/ft x 1 (0% excess) = 33.5 bbls Lead Cement Volume = 33.5 bbl+800' X .0309 X 1.25 (25% excess)= 64.4 bbl Tail System: 7-7/8" OH x 5-1/2" Csg: 5100-1500' = 3600' 3600' x .0309 bbl/ft x 1.25 (25% excess)=139.1 bbls Shoe Joint: 85' x .0238 bbl/ft= 2.0 bbls Total Tail Cement Volume= 141,1 bbls Actual volumes will be calculated at time of running casing due to potential variation in depth from planned. Prepared by Ed Jones Page 7 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program Cement System Type Cement Weight(ppg) bbl cf sx Lead @ 2.47cf/sx G 12.0 64.4 361.3 14.6_ Tail @ 1.35 cf/sx Type I 14.8 141.1 792 586 Please see attached 5-1/2" production casing analysis and specifications. Pressure Calculations Maximum Anticipated Surface Pressure From offset wells in the immediate area and actual pressure data from the nearby offset well, Nicolai Creek Unit#10, maximum anticipated bottom-hole pressures should not exceed 2325 psi at 5000 ft. (MD/TVD). Pressures measured at the Nicolai Creek Unit #11 well indicated a maximum gradient of .0.510 psi/ft with a bottom-hole pressure of 1196 psi recorded at 2344' (maximum observed from XPT). Maximum anticipated surface pressures "MASP" can be calculated by subtracting the gas gradient of.1 psi/ft from pore pressure gradient of 0.510 psi / ft and multiplying by the total TVD depth. (•© 11 Maximum Anticipated Surface Pressure= (.510 - .1) * 5000' =2051 psi A formation-integrity test to 16.0 ppg EMW @ 698' was conducted while drilling Nicolai Creek #10. Assuming casing shoe strength of 16.0 EMW (or 0.832 psi/ft), our estimated Maximum Allowable Surface Pressure during the 7-7/8" interval is expected to be Maximum Allowable Surface Pressure = (.832-.1)*700'=512 psi Drilling Hazards Shallow gas Shallow gas is a known hazard which exists throughout the area. The northwest side of Cook Inlet is noteworthy for its shallow gas hazard. All responsible personnel will be made aware and 1 a notice of such hazards will be posted in the rig doghouse. There is no record of H2S in the region, however; a gas detection system capable of detecting H2S as well as methane will be ' installed on the rig with detectors at the floor level,the shale shaker and in the cellar. Coal Seams The Cook Inlet region is rich in coal seams, inter-bedded between the sands, gravels and shales that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a tri-cone bit. The major hazard of drilling into a coal seam without observing the proper response is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in Prepared by Ed Jones Page 8 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program this fashion until successfully through the coal bed. The key word in successfully drilling the ✓ coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to maintain the proper weight and viscosity of the drilling fluid to properly remove the coal cuttings, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the on-site Mud Engineer. Well Proximity Risk There closest well to this #13 proposed wellbore is the Nicolai Creek Unit #9 well, the surface ✓ location of which is 2860' southwest of this location in Section 29. This#13 well is to be drilled directionally to the southwest, but the #9 is a straight hole with a PBTD of 2054'. The #13 wellbore is expected to be about 2200' from the#9 wellbore at this depth(and 1865' horizontally - from the surface location at 5000' depth). The other wells in this Section 29, NCU #1, #2, #4, and#6, are all about the same distance from the surface location of the #13 (2900-3000') but are all directionally drilled away from the#13 wellbore. Other Risks Sticky bentonitic clays, boulders, lost returns & differential sticking with overbalanced muds and gas influx while cementing or swabbing while tripping pipe. Prepared by Ed Jones Page 9 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program 2 7/8 6.5#8rd EUE J-55 Tubing Aurora Gas, LLC NICOLAI CREEK 13-3/8" Structural Conductor UNIT #13 POSSIBLE L. driven to 94+'GL Configuration(exact determined by logs and tests) 9-5/8" 36#Surface Casing set at 700' Cement w/12.ppg Type I Accelerated Drill 12-1/4"Hole to 700' 2-7/8" x 5-1/2"annulus to be J , displaced over to inhibited packer fluid through sleeve nu,1445' Prospective Pay Tops Beluga - 750-1700'TVD Carya 2-1.1 -1900'TVD Carya 2-2.2-2350'TVD Carya 2-2.3-3150'TVD Carya 2-4 -3725'TVD Hydraulic Set Packer @ 1750' Carya 2-6-4200'TVD Perforation Intervals to be Hydraulic Set Packer @ 1850' determined by open-hole logging. • Sliding Sleeve @-1900' Carya 2-1 I§ Hydraulic Packer @ 2250' Carya 2-2 _,,, �. _ Sliding Sleeves @-2300' Hydraulic Packer @ 3600' R0111.011011 Sliding Sleeve @ -3700' Cary 2-4. Mom.- Carya Carya 2-5&2-6 2 7/8"6.5#EUE 8rd Tubing w/On-Off Tool on Mechanical Packe r@ 3900'MD w/2.31 profile X nipple Estimated PBTD @5015' 5-1/2"15.5#K-55 Casing to 5100'MD Drill 7-7/8"Hole to 5100' MD/ / , L. 5000'TVD Prepared by Ed Jones Page 10 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program NICOLAI CREEK 13 DRILLING TIME 0 a 13 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 • • -1000 -2000 -kw Lu 1 est G \, -4000 , -5000 • • • ' • • -6000 — DAY Days 1-4: Drill 12-1/4" Hole ,d Days 4-6: Run and cement 9-5/8" casing ` Day 7: Test casing, drill out w/ 7-7/8" bit and run FIT. '`' P Days 7-19: drill directional 7-7/8"hole to 5100' MD / TVD Days 20-21: Log Days 22-23: Run 5-1/2" casing and cement. Days: 23---: Complete and test well. Prepared by Ed Jones Page 11 of 12 Rev. 1.1 Aurora Gas, LLC NCU#13 Drilling Program NICOLAI CREEK UNIT #13 Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE Ai There is potential for abnormal pressured shallow gas. There is potential for stuck pipe in coals encountered while drilling from surface to TD. Short trips as dictated by drilling trends. Ai There is no H2S risk anticipated for this well. Due to potential for shallow gas kick, very little response time will I be afforded to respond. PVT and gas detection systems must be fully operational and functioning at all times, visual flow checks and pit level monitoring are critical. CONSULT THE NICOLAI CREEK UNIT #13 WELL PLAN FOR ADDITIONAL INFORMATION Prepared by Ed Jones Page 12 of 12 Rev. 1.1 0 Q 0.., . .3 c-1- o N 4-11 oo co r41 o 0 ° kr.3 kr) o o o a; ce3 cel ) E o 0 Al O pQp =vI . on ° I~ 70 c d no b c.° o Q 2 o o p 0 0 o H -0 ,� 4 0ce3 c) 0 at 71 o aa)i .0 PA.. A a) am. p0 N N 'O ' N es en 1:-141 OO >, p G cd bA O y Lp O 0 E eel 'LI ° )d kr) N 0 0 O k.. O^, y O-0 1 W = O O a) N O N O M y N a) ami a) °> H N �bA 4 1.74 a) OD 4 �4 L d amO ao ) vL 0 0 �U n = 0 0 , ct tm, c4 cal a) 45 Vo O Z o o mss. 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M C/) N N bb sem, C1) = C1) . -^ OP v7 ,---1 O O C v'I oo CT v7 U 01 U W 200' 1 • Ilii\ 00X C5� n 1724'FNL Ilii NCU #136 AS-STAKED �_- IIIII��'' 1, I m NAD27 ASP ZONE 4 / / II/ I m v I N:2566738.903 I n o / E:244026.321 / o LAT: 61°01'03.726"N GRID I 0, LONG: 151°26'34.559"W/ I J ELEV. 21' (NAVD88) / 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS I / / DETERMINED BY AN NGS OPUS SOLUTION FROM CORS a, BASE STATIONS"KEN5 PID DJ3029","TSEA PID A10952"AND rl "ANC1 ANCHORAGE AIRPORT ARP PID DE6227" OBSERVED .�O MARCH 17,2009 FOR MCI CONTROL STATION GP BM-1 1993: -n 0 / m o / ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DATUM coCA N:2566447.996 C7 m im E: 1388129.471 ELEV:134.07 GEOID 06 NAVD88 DATUM --Imz 0/ 2)SECTION LNE OFFSETS DETERMINED FROM TIES TO I / -I a EXISTING BLM SECTION CORNERS AND ADL MONUMENTS m/ RECOVERED THIS SURVEY. Z D m 3)CORPSCON VER.6.0.1 WAS USED FOR DATUM m / CONVERSION NAD83 TO NAD27. I d tv * / Z° END m 53 / AIRSTRIP r STRIP r m D CD D C) Oin I / / mmz • n \ / W rn rn Z E.90 ' ' / u4 o9 '1PEE /\ N O CD / -I / �� y � PSE A�'�s'�� Ilm Z m /om * 49 •. * ; I / IIG) r 1 / D O K m> i foo � ��` - IID Z� /K m> /, c '.:M. SCOTT McLANE•.g ..• c APWETL$NN3 m Z > -S.)° `�� 4928-S ,� 'my II >m o / = o 00 - oo • '1, •••. 12thAug 12.••• g2 4'CREE JJ o O �/i i h°ESSI0NN'- .�` Z Z N SCALE .0000 n, 1 II / " 0 Tl I inch = 600ft. / IAN 4 II O� 1.61v11 -iiiil Rq/p�N�/ fEK /1 / — /k NICOLAI CREEK NO. 13B WELL AS-STAKED ENGINEERING-TESTING SURFACE LOCATION DIAGRAM NAD 27 SURVEYING-MAPPING P.O.BOX 468 APPLICANT: -yam-_ Aurora Gas, LLC C MC SOLDOTNA,AK.99669 VOICE:(907)283-4218 FAX:(907)283-3265 WWW.MCLANECG.COM ADDRESS: 6051 NORTH COURSE DRIVE SUITE 200 Consulting Inc HOUSTON,TX 77072 PROJECT NO. DRAWN BY: DATE: SEC.LINE LOCATION: 123051 OFFSETS: SECTION 29 msm AUG 12, 2012 1724'FNL TOWNSHIP 11 NORTH, RANGE 12 WEST 2607'FEL SEWARD MERIDIAN,ALASKA oli GE Oil & Gas I- 41.6" [o—: uom_uma 30.2' 2-9/16"5M V ,o' 14) l 2-9/16"5M . . . t v') • • • 1 • _., 1 28.0" 2-9/16'5M � �tt O IIIIIPL 1t•.. ./I s..:, , • a 'SLS/ Iv` 111.9' _ I 7-1/16"5M r.1u—E ' --'e .z,, u.,,_,, �� i �'" I I: L[011i 38.3"to f • t 24.1" !mIII. Illi N(o�°1 NVo\°i �.- -,.-1_lii[ ,ii _ 2-1/16'5M I :atrn _, 3. �utrG I. (' I 25.1"to[ '''I . O :Ifi. -1ItU .. I -it f o��1 ! —,li:. 29.0" ,� . , ir 2-1/16"5M 1 —. i 24"O.D.Base Plate 9-5/8"Casing — 1 5-1/2"Casing I 2-7/8"Tubing 1/4"Control Line p p GAS AS This drawing is the property of GE Oil&Gas Pressure Control LP and is considered confidential.Unless otherwise approved in writing, AURORA neither it nor its contents may be used,copied,transmitted or reproduced except for the sole purpose of GE Oil&Gas Pressure Control LP. NI CO LAI CREEK DRAWN VJK2 5JUL12 9-5/8 x 5-1/2 x 2-7/8" 5M Conventional Wellhead APPRV KN 25JUL12 Assembly, With T-EBS Tubing Head, FOR REFERENCE ONLY T-M40-CCL Tubing Hanger and Adapter Flange DRAWING NO. AE22044-A Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Thursday, September 13, 2012 1:54 PM To: 'Ed Jones' Subject: RE: AOGCC question Nicolai Crk#13 (PTD 212-125) Thanks ... One more thing I noticed. Do you have a detailed procedure for your FIT/LOT in step 11? Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Thursday, September 13, 2012 1:27 PM To: Schwartz, Guy L(DOA) Cc: 'George Pollock' Subject: RE: AOGCC question Nicolai Crk#13 (PTD 212-125) Guy, Here is the vendor diagram of the wellhead/tree system ordered for NCU 13, including the SVS. Please let me know if you have questions. Regards, Ed J. Edward Jones President Aurora Gas, LLC 6051 North Course Dr.,Ste 200 Houston,TX 77072 281-495-9957(0) 713-899-8103(C) From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, September 13, 2012 3:55 PM To: jejones@aurorapower.com Subject: AOGCC question Nicolai Crk #13 (PTD 212-125) Ed, Please supply a vendor quality sketch of the proposed wellhead/production tree and SVS system. Other than that the PTD application is complete. Thanks. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) No virus found in this message. Checked by AVG - www.avg.com Version: 2012.0.2221 /Virus Database: 2437/5266 - Release Date: 09/13/12 9/13/2012 OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME 4 1 C c�4_L 6eL (//4 i-- /3 PTD# 2 l Z___ i 2 /Development Service Exploratory Stratigraphic Test Non-Conventional Well /� / /VCL ,50�,Ia1.4_,-4,1--r z,; c/ec� FIELD: /ACe, �-t. C',-ee" / POOL: A7C t -1z .i,(. t,� ' 4 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. Approva to produce/_inject is contingent upon issuance of a c9nservation • de .pproving a spacing exception. `dam L Z- (- — assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. 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Aurora Energy LLC Nicolai Creek #13 1724' FNL, 2607' FEL, SEC 29; T 11N; R 21W Seward Meridian, Alaska Approved by: George Pollock Compiled by: John Lundy Josh Dubowski Distribution: 9/06/2013 T.D. Date: 24 August, 2013 Nicolai Creek #13 1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW ....................................................................................................2 1.1. EQUIPMENT SUMMARY .............................................................................................2 1.2. MUDLOGGING UNIT ...................................................................................................2 1.3. PERSONNEL ...............................................................................................................2 2. GENERAL WELL DETAILS ............................................................................................................................3 2.1. OBJECTIVES ...............................................................................................................3 2.2. WELL RESUME ...........................................................................................................3 2.3. HOLE DATA .................................................................................................................3 3. GEOLOGICAL DATA ......................................................................................................................................4 3.1. LITHOLOGY REVIEW ..................................................................................................4 3.2. SAMPLING PROGRAM AND DISTRIBUTION ...........................................................12 3.3. TRIP GASES ..............................................................................................................12 4. DRILLING DATA ...........................................................................................................................................13 4.1. DAILY ACTIVITY SUMMARY .....................................................................................13 4.2. SURVEY RECORD ....................................................................................................15 4.3. MUD RECORD ...........................................................................................................17 4.4. BIT RECORD .............................................................................................................18 4.5. DRILLING PROGRESS CHART .................................................................................19 Enclosures: 2”/100’ Formation Log (MD/TVD) 2”/100’ Combo Log (MD/TVD) 2”/100’ Gas Ratio Log (MD/TVD) 2”/100’ Drilling Dynamics (MD/TVD) Final Data CD Nicolai Creek #13 2 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Downtime Comments Ditch Gas Standard QGM Gas Trap Mounted In Possum Belly; FID Total Hydrocarbon Analyzer And Chromatograph 1 Clean and blow out lines, span, flow and calibrate equipment Rate of Penetration (ROP) Primary Draw-works Crown Encoder on Rig Crown Block 0.5 Calibration Pump stroke counters Externally Mounted Magnetic Proximity Sensor 1 Damaged counter replaced Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque N/A Top drive rotary (RPM) N/A Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From Flow Paddle 0 Pit volumes Sonic Pit Level Probes 1 Calibrate Casing Pressure N/A 1.2. MUDLOGGING UNIT Unit Number: 56 Unit Type Arctic Skid Unit Construction Steel Dimensions 28’ L x 8’W x 9.25’ H 1.3. PERSONNEL Unit Number: ML056 (Arctic Steel) LEA #1 Mudloggers Years Experience Days at well Sample Catchers Days at well Technician Days at well John Lundy 22 16 Omar Hinostroza 14 Travis Smith 4 Josh Dubowski 5 18 Frank Thrailkill 7 Nick Baker 5 Nicolai Creek #13 3 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of LEA No. 1 is to successfully drill and log an exploratory gas well in the Point Mackenzie area of the Matanuska-Susitna Borough, Alaska, with a minimum of hole problems or other concerns. 2.2. WELL RESUME Operator: Aurora Energy LLC Well Name: Nicolai Creek #13 Field: Nicolai Creek County: Kenai Peninsula Borough Region West side of Cook Inlet State: Alaska Company Representatives: Shane McGeehan, David Willingford Jerry Otto Location: 1724' FNL, 2607' FEL, SEC 29; T 11N; R 21W Seward Meridian, Alaska Classification: Exploratory API #: 50-283-20167-00-00 Permit #: 2121250 Rig Name / Type: Aurora #A3, AWS-1/SINGLE Elevation: Ground, RKB 37’ RKB, 21' GL Primary Targets: Beluga/Tyonek Spud Date: August 11, 2013 Total Depth 5071.6 Total Depth Formation: Tyonek Total Depth Date: August 24, 2013 MWD Company: Sperry Directional Drilling: Sperry Drilling Fluids Company: Halliburton Logging Companies: Halliburton: 2.3. HOLE DATA Nicolai Creek #13 Maximum Depth Shoe Depth F.I.T. Hole Section MD SSTVD T.D. Formatio n Mud Weight (ppg) Deviation (oinc) Casing MD SSTVD EMW Driven 93.5’ -56.5’’ Recent N/A 0 13 ” 93.5 -53.5’ N/A 12¼” 720’ -683’ Beluga 10.4 0.53 9 ” 710’ --673’ 16.0 7 7/8” 5071.6’ -5035.6’ Tyonek 9.5 11.73 NONE N/A N/A N/A Nicolai Creek #13 4 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Claystone/Sand (93.5’-150’) = medium gray to light medium gray with dark gray to black hues; clumpy to lumpy consistency; moderate cohesion; moderate adhesion; pulverulent; earthy fracture; dull to earthy luster; moderate amount of unconsolidated upper very fine sand; minor amounts of coal and siltstone; thick to massive structure overall. Sand (150’-210’) = dark medium gray to medium gray with dark brown hues; predominantly unconsolidated with occasional hard to very hard silica cemented sandstone; very poor sorting; sub discoidal to sub spherical; grain sizing ranges from lower coarse to upper very fine to upper coarse to granular; various colors of impact abraded quartz are the most common; dark lithics, carbonaceous sediment, pyrite, claystone and siltstone are common as well; Sand/Sandstone Conglomerate (210’-300’) = medium gray; soft to disaggregated loose sand; friable; poorly sorted; angular to subangular and subspheroidal; medium lower to medium upper, fine, coarse, granule and pebble; 30 to 40% translucent white to smokey and clear colorless quartz; balance is medium to light gray and black lithic/mineral grains; common to abundant orange jasper /volcanics and brown lithics; trace yellow, green and gray-green; generally in soft gray clay matrix; locally clean grain supported; non calcareous; no oil indicators. Claystone (300’-360’) = medium light gray with a slight brownish secondary hue; soft; sticky/clayey texture with imbedded grit; moderately adhesive/cohesive; slightly hydrophilic; grades to clayey siltstone; occurs as interbeds in associated sandstone/conglomerate complex; non calcareous; no oil indicators. Sand/Sandstone Conglomerate (360’-420’) = medium gray; soft to disaggregated loose sand; friable; poorly sorted; angular to subangular and subspheroidal; medium lower to medium upper, fine, coarse, granule and pebble to 7mm; 40 to 50% translucent white, opaque white; smokey and clear colorless quartz; some light frosting on larger grains; abundant to 40% dark gray, medium gray and black lithic/mineral grains; abundant orange jasper (to 10%); common brown grains; trace yellow, green, gray green; scattered blue lithic/mineral grains; appears to be primarily matrix supported in associated grayish brown clay; locally clean with apparent grain support; non calcareous; no oil indicators. Conglomerate/Conglomeratic Sand (420’-510’) = medium gray; soft to disaggregated loose sand; friable; poorly sorted; angular to subangular and subspheroidal; medium lower to medium upper, fine, coarse, granule and pebble to 8mm; 40 to 50% translucent white, opaque white; smokey and clear colorless quartz; large grains and pebbles tend to be quartzite or lithic pebble fragments; 30 to 40% dark gray lithic/mineral grains. Sand/Conglomeratic Sand (510’-570’) = medium gray to medium dark gray; unconsolidated to occasionally soft; lower fine to upper fine with lower coarse to lower medium being common; sub angular to angular; sub spheroidal to sub discoidal; poor sorting; granule sized quartz and lithic grains are up to 4.5mm; sand is made up of 50% clear to translucent to milky white quartz; minor amount of clay with trace amounts of siltstone, carbonaceous sediment, biotite flakes and pyrite. Sand/Conglomeratic Sand (570’-630’) = medium gray to dark medium gray with pale brownish secondary hues; unconsolidated to soft with trace very hard to hard siliceous clasts; lower to upper medium the most common with granule to lower fine grains being common; poor sorting angular to very angular; discoidal to sub prismoidal; minor amounts of carbonaceous sediment, biotite flakes and pyrite. Claystone/Sand (630’-720’) = dark medium gray to medium gray; clumpy to mushy; poor induration; pulverulent to malleable; earthy fracture; massive cuttings habit; dull to earthy luster; silty to clayey texture; good cohesion and adhesion; moderately hydrophilic; the sands are made up of clear to Nicolai Creek #13 5 translucent quartz and dark lithics; lower coarse to upper medium common; sub angular to angular; poor to moderate sorting overall; sub spherical to sub discoidal; coal seam at approximately 715’; matte black; sub bituminous; slight de-gassing. Claystone (720’-800’) = medium gray to dark medium gray; poor induration; lumpy to mushy; pulverulent; earthy to irregular fracture; dull to earthy luster; clayey to smooth texture; hydrophillic; moderate to good cohesion; poor to moderate adhesion; trace to minor amounts of lower to upper fine grained sand and carbonaceous sediment. Overall a massive claystone structure interbedded with very thin layers of sand. Claystone (800’-860’) = dark medium gray to medium gray; poor induration; clumpy to lumpy; pulverulent; earthy to irregular fracture; dull to earthy luster; smooth to clayey texture; hydrophillic; good cohesion and adhesion; trace lower to upper fine grained sand and carbonaceous sediment. Overall a massive claystone structure interbedded with very thin layers of sand. Claystone (860’-920’) = medium gray to dark medium gray; poor induration; clumpy to tacky; pulverulent; earthy to irregular fracture; earthy to dull luster; clayey to smooth texture; hydrophillic; good cohesion and adhesion; trace upper to lower fine grained sand and carbonaceous sediment. Overall a massive claystone structure interbedded with very thin layers of sand. Claystone (920’-980’) = dark medium gray to dark gray with blackish secondary hues; pasty to tacky to slightly pasty; pulverulent; earthy to irregular fracture; earthy to dull luster; clayey to smooth to slightly silty texture; good cohesion and adhesion; hydrophilic; slight increase in sand and silt content; overall massive structure interbedded with thin layers of sand, siltstone and coals. Claystone (980’-1070’) = medium gray to dark medium gray with pale brown secondary hues; poor induration; clumpy to lumpy; pulverulent; earthy fracture; earthy to dull luster; clayey to silty texture; hydrophilic; moderate to good cohesiveness; good to moderate adhesiveness; minor amount of sand and coal; the sand is clear to translucent quartz; lower medium to upper fine grained; sub spherical; moderate to good sorting; sub angular to sub rounded. Claystone (1070’-1140’) = medium gray to medium dark gray; clumpy to tacky; poor induration; pulverulent to malleable; earthy fracture; dull to earthy luster; clayey to smooth texture; good to moderate cohesion and adhesion; hydrophilic; minor amount of sand, coal and organic material; sands are lower medium to upper fine; moderate sorting; sub angular to sub rounded; sub spheroidal to sub discoidal; trace de-gassing observed on the coals. Claystone (1140’-1200’) = dark medium gray to medium gray; poor induration; clumpy to tacky; pulverulent; earthy to irregular fracture; earthy to dull luster; smooth to clayey texture; hydrophillic; good cohesion and adhesion; sand content increases through the interval; lower medium to lower fine grained; moderate sorting; sub spheroidal; sub rounded to sub angular; unconsolidated; translucent to clear quartz; moderate amount of carbonaceous sediment; Claystone (1200’-1290’) = medium to medium dark and locally medium light gray; soft to slightly firm; gritty to clayey texture; dull earthy to silky luster; hydrophilic; easily washes away in sample preparation; slightly cohesive non to slightly adhesive; scattered intact fragments display common to abundant carbonaceous microlamina and coal fine inclusions; material contains increasing amounts of fine to very fine angular volcanic glass shards and very fine mica flakes; slightly sandy through out; locally grades to thin tuffaceous sandstone interbeds; slightly calcareous may be due to caco3 mud additive; no oil indicators. Tuffaceous Claystone/Siltstone (1290’-1380’) = medium gray to medium light gray with a slight brownish secondary hue; soft to slightly firm; clayey to gritty texture; silky to dull earthy luster; slightly gritty throughout hydrophilic; easily washes away in sample preparation; slightly cohesive non to slightly adhesive; scattered intact fragments display common to abundant carbonaceous microlamina and coal Nicolai Creek #13 6 fine inclusions; included volcanics impart a microsparkly appearance; trace angular volcanic glass shards and very fine mica flakes; occasional thin sand and coal interbeds; slightly calcareous may be due to caco3 mud additive; no oil indicators. Coal (1380’-1500’) = very dark gray to black; hard; brittle; hackly in part; irregular to blocky fragments; lignitic to sub-bituminous; silty; poorly developed; slight persistent out-gassing; occurs as scattered thin to moderate interbeds in associated tuffaceous clay/ siltstone. Tuffaceous Claystone/Siltstone (1380’-1500’) = medium gray to medium light gray with a slight brownish secondary hue; soft to slightly firm; clayey to gritty texture; silky to dull earthy luster; hydrophilic; easily lost in sample preparation; moderately cohesive slightly adhesive; no intact fragments; locally abundant remnant microthin carbonaceous lamina fragments and coal fines; included angular volcanics impart a microsparkly appearance; trace occasional sand and coal interbeds; trace calcareous; no oil indicators. Sand/Tuffaceous Sandstone (1520’-1560’) = medium gray; rare intact fragments are mottled; soft to slightly firm; moderately well sorted; medium lower to fine lower and very fine grain; primarily clear to translucent white quartz/volcanics; sub rounded to sub angular; sub spherical to sub discoidal. Tuffaceous Claystone/Sand (1560’-1640’) = medium gray to medium dark gray with occasional pale brown hues; poor induration; clumpy to tacky; earthy to irregular fracture; pulverulent; dull to earthy luster; clayey to silty texture; good cohesiveness; moderate adhesiveness; the sand is clear to translucent white quartz and volcanics; upper fine to lower medium; moderate sorting; sub angular to sub rounded; sub spherical to sub discoidal; sand content decreases down through the interval; minor amount of carbonaceous sediment; no oil indicators. Tuffaceous Claystone (1640’-1700’) = medium gray to medium dark gray with pale brown hues ; clumpy to tacky; poor induration; pulverulent to malleable; earthy fracture; dull to earthy luster; clayey to smooth texture; good to moderate cohesion moderate to poor adhesion; hydrophilic; slightly calcareous though could be due to mud additive; trace de-gassing observed on some coal fragment; trace sands. Tuffaceous Claystone/Sandstone(1700-1800’) = medium gray to medium dark gray; clumpy to pasty to tacky; poor induration; pulverulent; earthy fracture; clayey to smooth texture; good cohesion; moderate adhesion; the sandstones are predominantly unconsolidated with rare easily friable to friable clasts; overall lower medium to upper fine; moderate sorting; sub rounded to sub angular; sub spheroidal; the intact clasts are typically grain supported; slightly calcareous; well to moderate sorting; upper fine grained; grain supported by a tuffaceous matrix; no oil indicators. Tuffaceous Sandstone/Claystone (1800’-1900’) = dark medium gray to medium gray with pale bluish gray hues; friable to firmly friable to unconsolidated; lower fine to upper very fine grained to occasionally upper fine; angular to sub angular; sub discoidal to sub spherical; moderate sorting; grain supported by a clay/ash matrix; the claystones are poorly indurated; clumpy to pasty; pulverulent; earthy fracture; dull to earthy luster; silty to clayey texture; moderate adhesion good cohesion; Coal (1900’-1920’) = matte black with occasional brown and gray hues; brittle to crumbly; hackly to blocky fracture; flaky to wedge-like cuttings habit; sub-bituminous to lignite; trace amount of de-gassing. Tuffaceous Claystone/Sandstone(1920-2020’) = dark medium gray to medium gray; clumpy to tacky to pasty; soft to poor induration; pulverulent to malleable; clayey to smooth texture; moderate adhesion; good to moderate cohesion; sandstones are predominantly unconsolidated with rare firmly friable to friable clasts; overall lower medium to upper fine grained; moderate sorting; sub rounded to sub angular; sub spherical to sub discoidal; the sandstone clasts are typically grain supported; slightly calcareous; well Nicolai Creek #13 7 to moderate sorting; upper fine grained; grain supported by a tuffaceous matrix; coal and silt have been common through out the interval; no oil indicators. Tuffaceous Sandstone/Claystone (2020’-2080’) = dark medium gray to medium gray with dark brown and black hues; soft to unconsolidated; lower fine to lower very fine to lower medium; poor to moderate sorting; sub spheroidal; sub angular to sub rounded; supported by a clay/ash matrix; non calcareous; predominantly clear to translucent smokey gray quartz and carbonaceous sediment. Tuffaceous Sandstone/Claystone (2080’-2150’) = dark medium gray to medium gray with blackish brown hues; soft to unconsolidated; lower fine to upper very fine to lower medium; moderate to poor sorting; sub spheroidal; sub rounded to sub angular; supported by an ash/clay matrix; non calcareous; clear to translucent gray quartz and carbonaceous sediment; coal content increases through the interval; sub bituminous to lignitic; matte black to dark brown; trace de-gassing observed. Tuffaceous Claystone/Sand(2150’-2210’) = medium dark gray to medium gray with brown hues; poor induration; clumpy to tacky; pulverulent to slightly malleable; earthy to occasionally blocky fracture; dull to earthy luster; silty to clayey texture; good to moderate cohesion; moderate adhesion; trace well indurated clasts of medium bluish gray claystone. Coal (2240’-2260’) = very dark gray to black; hard; brittle; hackly; irregular to blocky fragments; sub- bituminous; poorly developed; common cleat on fractures; no distinct conchoidal fracture noted; slight out gassing does not persist; occurs as occasional thin to moderate beds in associated tuffaceous material. Tuffaceous Claystone/Siltstone (2260’-2380’) = medium gray to medium light gray with a slight brownish secondary hue; soft to slightly firm; clayey to gritty texture; silky to dull earthy luster; hydrophilic; easily lost in sample preparation; moderately cohesive /adhesive; scattered intact sand coated fragments; generally collected as adheased masses; abundant remnant carbonaceous microlamina fragments; common very fine clastic coal; included volcanic glass shards impart a micro-sparkly appearance; generally more ashy in appearance than previously noted; moderately to thickly bedded with occasional thin coal and sand interbeds very slightly calcareous may be due to caco3 mud additive; no oil indicators. Tuffaceous Sandstone/Conglomeratic Sand; (2385’-2480’) = medium light gray; slight blueish secondary hue; fragments display a salt & pepper appearance; slight blueish secondary hue; moderately to poorly sorted along the upper contact becoming well sorted; friable in part; medium lower to upper, fine upper and coarse grain; angular to subangular in the finer material; coarser fraction tends to be moderately rounded to angular; scattered small pebble fragments; primarily translucent white to clear colorless quartz/volcanics; common smokey translucent and clear; common dark gray to black mafic mineral/volcanics; trace brown, orange, green, and rose; trace biotite; slight chlorite stain on some fragments; primarily matrix supported in soft white fluffy ash; hydrophilic; locally abundant carbonaceous micro-lamina; occasional thin coals; moderately calcareous; no oil indicators. Tuffaceous Siltstone/Claystone (2500’-2600’) = medium gray to medium light gray with a slight greenish secondary hue; slightly firm to soft; silty/ gritty texture; silky to dull earthy luster; hydrophilic; easily lost in sample preparation; moderately cohesive /adhesive; scattered intact sand coated fragments; generally as adheaded mixed masses; trace coal fines; common coarse sand size white ash blebs; grades to silty soft fluffy tuffaceous sandstone; occasional thin to moderate coal/lignite interbeds; grades to similar medium lower to fine upper grain tuffaceous sandstone with increasing depth; sand is vey ashy; matrix supported; no visible porosity; common thin to moderate ash interbeds; scattered coarse grain and pebble fragments; slightly calcareous; no oil indicators. Coal/Carbonaceous Shale (2618’-2640’) = very dark gray to black and reddish brown; moderately hard; brittle; irregular angular to tabular fragments; sub fissile in part; shaly; lignitic; slight out gassing does not Nicolai Creek #13 8 persist; no mature coal characteristics; moderate bed with numerous thin tuffaceous carbonaceous sand/siltstone interbeds; underlain by carbonaceous silt and clean greenish gray underclay; Conglomeratic Sand/Tuffaceous Claystone (2640’-2770’) = medium light gray to light gray with pale brown secondary hues; unconsolidated to soft to rare very hard clasts; lower coarse to upper fine; very poor sorting; sub angular to sub rounded; sub spheroidal to sub discoidal; impact abraded quartz and volcanics as large as 8mm common; overall sample dominated by translucent gray to clear quartz and dark gray and black lithics; grain supported; tuffaceous matrix; moderately calcareous trace pale golden brown siltstone, ash clasts with carbonaceous laminations and sediment. Tuffaceous Sandstone/Conglomeratic Sand (2770’-2860’) =medium dark gray to medium gray with brownish hues; soft to unconsolidated to trace very hard to moderately hard fragments; upper very fine to lower coarse with grains up to 6mm; sub spherical to sub discoidal; sub rounded to sub angular; grain supported; overall dominated by translucent gray to clear quartz and dark gray to black volcanics; occasional coal seam; dark brown to matte black; brittle to crumbly; hackly; lignitic to sub bituminous; trace de-gassing; trace ash clasts with carbonaceous banding. Tuffaceous Sandstone/Claystone (2860’-2930’) = medium dark gray with brownish hues to light gray to very light gray with pale brown hues; unconsolidated to soft to friable; upper very fine to upper medium; poor sorting; sub rounded to sub angular; sub spherical to sub discoidal; predominantly made up of quartz and dark gray to black volcanics; grain supported by a clay/ash matrix; poor to non calcareousness possibly due to mud product contamination; occasional carbonaceous sediment and trace ash clumps and pale golden brown siltstone clasts; Tuffaceous Sandstone/Sand (2930’-3000’) = medium gray to light medium gray with occasional pale brown hues; soft to unconsolidated; upper very fine to upper medium; poor sorting; sub rounded to sub angular; sub spherical to sub discoidal; trace amount of granules up to 4mm; made up of clear to translucent gray quartz and dark gray to black volcanics; carbonaceous sediment and trace ash clasts with carbonaceous banding; non calcareous. Tuffaceous Sandstone/Sand (3000’-3060’) = medium gray to light medium gray with pale brown hues; unconsolidated to soft to rare friable clasts; upper very fine lower medium; trace granules up to 4mm; sub spherical to sub discoidal; sub angular to sub rounded; poor sorting; predominantly made up of clear to translucent gray quartz and dark gray to black volcanics; grain supported by a ash/clay matrix; trace calcareousness possibly due to mud product. Tuffaceous Sandstone/Sand (3060’-3110’) = medium gray to light medium gray; soft to unconsolidated; upper very fine to lower coarse; sub angular to sub rounded sub spherical to sub discoidal; impact abraded quartz and volcanics common; moderate amount of siltstone with deformed carbonaceous banding; material is primarily matrix supported in fine very light gray to white ash/tuff; no visible porosity noted in intact frog-mints; slightly calcareous may be due to caco3 mud additive; no fluorescence or other oil indicators. Tuffaceous Sandstone/Conglomeratic Sand (3180’-3280’) = medium light gray; slight brownish secondary hue; collected as soft bit bruised masses and loose sand imbedded in masses of coagulated polymeric paste; moderately well to poorly sorted; friable in part; medium lower to medium upper and fine upper predominate; locally abundant very fine; and coarse; scattered granule and small pebble; angular to subangular in the in the finer material; coarser fraction tends to be moderately rounded to angular; translucent white to clear quartz/ volcanics predominate; common smokey; 30 to 40% dark gray to black mafic mineral/volcanics; common black chert in coarser fraction; trace brown, orange and green; trace mica; abundant medium grain size off white ash blebs; hydrophilic; appears entirely matrix supported in light brownish gray ash/tuff; slightly calcareous; trace very dull brown fluorescence; no odor stain or cut. Nicolai Creek #13 9 Tuffaceous Claystone/Tuffaceous Siltstone (3280’-3380’) = medium light gray-brown; clayey to silty texture; grading to silty tuffaceous sandstone; contains variable amounts of fine to medium and very fine sand, scattered coarse and occasional 3 to mm pebble; sample collected as firm claylike masses may be related to polymer action in the mud system; rare intact fragments are hydrophilic; sample masses are not; polymer material does not wash from sample or release sediments from masses; loose sand and scattered coal fragments imbedded on the surface of clumps; clumps are very cohesive; moderately adhesive; slightly calcareous may be due to caco3 added to mud; no oil indicators Tuffaceous Sandstone/Claystone (3380’-3450’) = medium dark gray to medium gray with secondary brown and black hues primarily unconsolidated to soft to firmly friable; upper very fine to upper medium; poor sorting; sub rounded to sub angular; sub spherical to sub discoidal; predominantly made up of quartz and dark gray to black volcanics; grain supported by a clay/ash matrix; poor to non calcareousness possibly due to mud product contamination; occasional carbonaceous sediment and trace ash and clumps of dark brownish black siltstone with very poor induration. Coal (3450’-3480’) = matte black to very dark brown; dense to slightly brittle; blocky to irregular sub conchoidal; sub bituminous; trace de-gassing. Tuffaceous Claystone/Sand (3480’-3570’) = medium dark gray to medium gray with brownish hues; poor induration; clumpy to mushy; pulverulent to malleable; earthy fracture; dull to earthy luster; silty to clayey texture; good cohesion; moderate to good adhesion; hydrophilic; trace to non calcareous possibly due to mud additives; moderate amount of quartz rich sand; upper medium to upper very fine; poor sorting; sub spherical to sub discoidal; translucent to clear quartz, quartzose and dark lithics including chert; no oil indicators. Tuffaceous Sandstone/Claystone (3570’-3620’) = medium dark gray to medium gray with dark brown and black hues; soft to unconsolidated; sub angular to sub rounded; sub spherical to sub discoidal; lower medium to upper very fine grained; poor sorting; matrix supported to rarely grain supported; non calcareous. Tuffaceous Sandstone/Coal (3620’-3692’) = medium dark gray to medium gray with brownish hues; unconsolidated to soft; lower medium to lower very fine; sub spherical; poor sorting; sub angular to sub rounded; coals are matte black to dark brown; hard to very firm to sub blocky to sub conchoidal to irregular fracture; sub bituminous; trace de-gassing. Tuffaceous Sandstone/Claystone (3690’-3760’) = medium gray to light medium gray with pale brown secondary hues; soft to unconsolidated; lower fine to upper medium grained; sub spherical to sub discoidal; poor sorting; sub angular to sub rounded; predominantly clear to translucent greenish gray and white quartz; moderate amount of carbonaceous sediment; non calcareous; possibly matrix supported; samples are blebs of clay/ash with sand grains mixed in; trace siltstone and coal; no oil indicators. Tuffaceous Sandstone/Conglomeratic Sand (3760’-3840’) = light medium gray with pale brown hues to medium gray; unconsolidated to soft to occasionally hard; lower coarse to upper very fine; very poor sorting; sub discoidal to sub spherical; sub angular to angular to sub rounded; matrix supported; non calcareous; predominantly made up of clear to translucent gray and white quartz; off white ash blebs with occasional deformed carbonaceous banding common; carbonaceous sediment, siltstone and dark lithics are also common but not abundant. Carbonaceous Shale/Coal (3840’-3900’) = very dark brown to matte black; brittle to crumbly to occasionally dense; planar to blocky to sub conchoidal fracture; platy to tabular cuttings habit; resinous luster; shales are interbedded with silt and fall apart when prodded; lignitic to sub bituminous coals, tuffaceous claystone and sand common. Nicolai Creek #13 10 Tuffaceous Claystone/Sandstone (3900’-4000’) = medium gray to dark medium gray with pale brown hues; poor induration; clumpy to lumpy; pulverulent; earthy to irregular fracture; dull to earthy luster; silty to gritty texture; good cohesion; moderate to good adhesion; hydrophilic; easily washes out of samples; sands are predominantly clear to transparent gray to white quartz; unconsolidated to soft; lower fine to upper medium grained; sub spherical to sub discoidal; sub rounded to sub angular; poor sorting; carbonaceous sediment, siltstone and carbonaceous shale common but not abundant; no oil indicators. Conglomeratic Sand/Coal (4000’-4090’) = overall medium gray to dark medium gray with brown and black hues; soft to unconsolidated; lower coarse to upper very fine; sub spherical to sub discoidal; sub angular to sub rounded; pebbles up to 6mm common; clear to translucent gray and white quartz dominated; dark gray to black lithics and carbonaceous sediment common; the coals are matte black to very dark brown; planar to sub conchoidal to blocky fracture; platy to tabular cuttings habit; sub bituminous to lignite; de-gassing common; no oil indicators. Tuffaceous Sandstone/Siltstone (4080'-4180') = medium gray to medium gray-brown; salt and pepper appearance in part; soft to firm; collected as hydrated fluffy soft masses and slightly firm partially hydrated fragments with trace to 5% loose sand; fine lower to very fine upper and medium lower grain; angular to sub angular and sub spheroidal; primarily clear to translucent white quartz/volcanics; common to abundant dark gray to black mafic mineral/volcanics; trace to abundant coal fines; locally abundant very thin coal lamina; occasion al thin coal/carbonaceous silt interbeds coal is more mature than previously seen; trace conchoidal fracture/cleat; slight persistent out-gassing; non calcareous; no oil indicators. Tuffaceous Sandstone/Siltstone/Sandstone Conglomerate (4180'-4280') = medium to medium dark gray; brownish secondary hue in part; salt and pepper appearance in part; soft to slightly firm; hydrophilic; collected as soft masses as seen above; rare clean partially indurated fragments; fine upper to medium lower and very fine grain; locally common medium upper to coarse; scattered small pebble; angular to sub-angular and sub spheroidal; primarily translucent white to clear colorless quartz/volcanics; common to abundant dark gray to black mafic mineral/volcanics; common to 5% coal fines and shredded thin carbonaceous lamina fragments; interbedded with thin tuffaceous claystone, tuff/ash and occasional thin coals; trace calcareous; no oil indicators. Tuffaceous Sandstone/Sandstone Conglomerate (4280'-4380') = medium to medium dark gray; brownish secondary hue; soft to slightly firm; hydrophilic; collected as soft masses as previously seen; no intact fragments noted; fine upper to medium lower, fine and scattered coarse; trace small pebble fragments; angular to sub-angular; and sub-spheroidal; primarily translucent white to clear colorless quartz/volcanics;; common to abundant dark gray to black mafic mineral/volcanics; common to 5% coal fines and shredded thin carbonaceous lamina fragments; trace calcareous; no oil indicators. Coal/Carbonaceous Shale (4370'-4420') = black to very dark gray-black; firm to hard; brittle; hackly; irregular angular fragments; shaly to silty; flaky to tabular cuttings habit; sub bituminous t to lignite; interbedded with tuffaceous sandstone; trace de-gassing. Tuffaceous Siltstone/Claystone (4420'-4490') = very dark brownish gray to dark gray with black and brown secondary hues; poor induration; clumpy to mushy; crumbly to pulverulent; earthy to irregular fracture; earthy to slightly resinous; moderate to good cohesion and adhesion; hydrophilic; non calcareous; clear to translucent gray quartz semi common; lower fine to upper very fine; sub rounded to sub angular; spheroidal; moderate to good sorting; minor amount of carbonaceous shale and coals. Conglomeratic Sand/Tuffaceous Sandstone (4490'-4580') = medium gray to light medium gray with pale blue to black secondary hues; unconsolidated to soft to occasionally hard; predominantly lower medium to upper fine with lower to upper coarse and pebbles up to 8mm; clear to translucent gray to white quartz, quartzose and dark gray to black lithics; impact abrasions common; minor amount of ash and siltstone and trace pink feldspar; no visible oil indicators. Nicolai Creek #13 11 Tuffaceous Sandstone/Claystone (4570'-4620') = medium gray to dark medium gray with pale brown and black hues; soft to unconsolidated; lower fine to upper medium; poor sorting; sub angular to sub rounded; sub sphericity to sub discoidal; non calcareous; clay/ash matrix supported; no oil indicators. Coal/Carbonaceous Shale (4620'-4660') = matte black to very dark brown; hard to occasionally brittle and crumbly; hackly to irregular and angular fracture to occasionally conchoidal; sub bituminous to lignite; interbedded with tuffaceous silt and sand laminations; visible de gassing. Tuffaceous Claystone/Coal (4660'-4700') = light medium gray to medium gray with pale brown hues; poor induration; clumpy to tacky; malleable to pulverulent; earthy to irregular fracture; dull to earthy luster; coal is shaly; irregular angular fragments; visibly out gassing. Conglomeratic Sand/Tuffaceous Sand (4700-4790') =medium dark gray to gray with a slight brownish secondary hue; medium up per to medium lower and coarse with scattered granule and pebble; angular to subangular; 80% translucent white to clear quartz/volcanics; trace to common gray to black lithic/mineral/volcanics; collected as loose grains and scattered white ash blebs; trace tuffaceous silt stone; 10% coal at 4770'; massive coal at 4780'; very slight very dull brown fluorescence from 4760 and 4770 samples; very slight crush cut to dull gold; very slight residual ring cuts to dull yellow Conglomeratic Sand/Tuffaceous Sandstone (4790'-4880') = dark medium gray with black and pale brown hues to medium gray to light medium gray; unconsolidated to soft to hard; lower coarse to upper fine grained; large pebble fragments up to 9mm common; poor sorting; angular to sub angular; sub discoidal to sub spheroidal; non calcareous; large impact abraded quartz and other dark lithics common; chert, quartzose, coal and carbonaceous shale common; trace well cemented ash and quartz sandstone with occasional deformed carbonaceous banding observed; trace pyrite, orange feldspar, and pale brown to brownish black siltstone; no fluorescence; very slow dull gold cut. Tuffaceous Claystone/Siltstone (4880'-4950') = dark medium gray to medium gray with dark brown to black hues; poor induration; clumpy to mushy to pasty; pulverulent to malleable; earthy to irregular fracture; good cohesion and adhesion; non calcareous; hydrophilic; minor amount of lower medium to upper fine grained quartz sand; trace coals, carbonaceous shales and ash clumps; large amount of graphite mud product contamination in the samples; very slow dull gold cut; no fluorescence. Tuffaceous Sandstone/Conglomeratic Sandstone (4950'-5050') = medium light gray; soft ashy fragments and loose disaggregated sand; moderately to locally well sorted; medium lower to medium upper fine and coarse sand; primarily translucent white to clear quartz/ volcanics; trace black chert; trace dark mafic mineral/volcanics and coal fines; larger fragments appear to be frosted or have residual silica cement; generally ash matrix supported; partial grain sup-port below 5020'; occasional coal and ash interbeds; some samples have a very slight crush cut; no odor or stain; moderately calcareous; note adding caco3 and graphite. Tuffaceous Sand/Coal (5050'-5071' TD) = medium light gray with a slight brownish secondary hue; all as seen above; coal is black; hard; brittle angular to hackly bituminous to sub-bituminous; good conchoidal fracture; slight visible out-gassing; trace calcareous; no oil indicators. Nicolai Creek #13 12 3.2. SAMPLING PROGRAM AND DISTRIBUTION LEA #1 Set Type and Purpose Interval Frequency Distribution A Water washed and oven dried 90’ to 5071’ RKB 90-720-30s 720-5071-20s Aurora Energy LLC 333 West Seventh Ave. Anchorage, Alaska 99501-3572 B Water washed and oven dried 90’ to 5071’ RKB 90-720-30s 720-5071-20s Aurora Energy LLC 333 West Seventh Ave. Anchorage, Alaska 99501-3572 C Water washed and oven dried 90’ to 5071’ RKB 90-720-30s 720-5071-20s State of Alaska Via Hotshot “DRY” SAMPLE BOX INTERVALS: Sets 1, 2, and 3: (90’-5071’ 1, 90’ – 5071 2, 90’ – 5071’ 3). 3.3. TRIP GASES Depth TG C1 C2 C3 iC4 nC4 iC5 Nc5 3692’ RIH @720’ 410 82193 4193’ RT OB 17 4153 4788’ RIH@ 817’ 106 23884 tr 4788’ RT OB 82 18260 tr 5071’ WT to 708’ 23 5332 tr Note: RT = Round Trip; WT = Wiper Trip; OB = Off Bottom; RIH = Running Into Hole Nicolai Creek #13 13 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 8/09/2013: Site visit-arrive on site, survey pad, and inspect mud-logging unit. 8/10/2013: Rigging Up 8/11/2013: Continue rigging up and building mud. P/U BHA and begin drilling surface hole. 8/12/2013: Drilled down to 265' and worked on pump #1. Continue drilling down to 517' and made a short trip out to the 8" collars. Tripped back in hole and drilled ahead. 8/13/2013: Finished taking survey at 517' with 1 degree deviation. Drilled to a total depth of 720'. Circulated hole clean and made a short trip back to the 8" collars. Circulated clean, rigged up, and took a survey at 720' with 0 degree deviation. Pulled out of the hole and laid down the bottom hole assembly. Rigged up and ran in the hole with 9 5/8" casing. Rigged down casing tools and rigged up Schlumberger cementers. Circulated hole clean and conditioned mud. Set casing shoe at 708' and performed cement job. Pumped 50 bbl 11 ppg mud push, 1/2 bbl water, 90 bbl 12 ppg cement, and 5 bbl water behind. Bumped plug at 48' 8/14/2013: Rigged down SLB cementing equipment, cleaned up rig and cement. Rigged down diver line/mouse hole. Cleaned out pits. Prepared for casing work then cut and weld casing. Continue working on casing. 8/15/2013: Continued working on casing. Rigged up choke line, kill line, etc. Nippled up BOP's after casing cooled off. Rigged up BOP testing equipment and began testing BOP's. 8/16/2013: Finish testing BOP's and R/D testing equipment. P/U BHA and RIH. Displace spud mud with 3% KCL/EZ mud. Drill out cement and floats plus 20' of new hole. R/U for FIT test and test to 16.0ppg EMW. R/D test equipment and begin drilling new hole. Drilling ahead at report time. 8/17/2013: Drilled ahead to 1208', circulated, back reamed 4 times and POOH to the shoe. Ran back to bottom and drilled ahead to 1710' MD. Circulated, back reamed 4 times then short tripped out to 1235'. Ran back to bottom and continued drilling ahead. 8/18/2013: Continued drilling to 2213' circulated bottoms up 2x and make a 500' short trip. Run back to bottom and drill ahead to 2686', Circulate bottoms up 2x and make a 500' short trip. Repair shakers, run back to bottom and drill ahead. 8/19/2013: Drilled to 3184', circulated bottoms up and tripped out 500'. Tripped back to bottom, circulate and condition mud and drill ahead 8/20/2013: Continued drilling ahead to 3688'. Circulate then pump a dry job and POOH. L/D BHA and swap out bits. RIH, test MWD tools at 750' then run to bottom. 418 units of trip gas after only 1640 strokes into bottoms up circulation. Finished circulating and began drilling ahead 8/21/2013: Drilled ahead to 4193' and short tripped out to 3650'. Ran back in and continued drilling ahead. Nicolai Creek #13 14 8/22/2013: Continued drilling to 4788'. ROP dropped to ~10 fph due to bit/MWD tool damage. Flow rate and annular velocity also dropped drastically due to running on one pump. Insufficient hole and decision made to POOH and change out BHA. POOH and rig up BOP testing equipment. Testing BOP's. 8/23/2013: Finished testing BOP's and R/D testing equipment. P/U BHA and new mud motor. RIH to bottom and begin drilling ahead. 8/24/2013: Drilled to TD at 5071' and circulated. Short trip out to the shoe then run back into the hole. Circulating at report time. 8/25/2013: Finished circulating after wiper trip and POOH and L/D BHA. R/U Halliburton wire-line equipment and commence wireline operations. 8/26/2013: Rig Down Ni c o l a i C r e e k # 1 3 15 4. 2 . SU R V E Y R E C O R D Me a s u r e d De p t h In c l i n a t i o n * A z i m u t h T V D Re c t a n g u l a r Co o r d i n a t e (+ ) N / S ( - ) Re c t a n g u l a r Co o r d i n a t e (+ ) E / W ( - ) Ve r t i c a l Se c t i o n DLS ( f t ) ( d e g ) ( d e g ) ( f t ) ( f t ) ( f t ) ( f t ) ( d e g / 1 0 0 f t ) 0 0 0 0 0 0 0 0 72 7 0. 5 3 10 . 9 1 72 6 . 9 9 3. 3 1 0. 6 4 -2 . 6 2 0.07 82 1 0. 9 1 20 7 . 8 4 82 0 . 9 9 3. 0 8 0. 3 7 -2 . 2 6 1.52 91 5 4. 7 9 20 8 . 2 6 91 4 . 8 5 -1 . 0 4 -1 . 8 4 2. 0 7 4.12 10 0 9 5. 7 22 2 . 2 5 10 0 8 . 4 6 -7 . 9 5 -6 . 8 3 10 . 3 4 1.66 11 0 3 9. 3 5 22 5 . 5 3 11 0 1 . 6 4 -1 6 . 7 6 -1 5 . 4 2 22 . 5 8 3.91 11 9 8 11 . 8 2 22 9 . 3 1 11 9 5 . 0 1 -2 8 . 5 1 -2 8 . 3 1 40 . 0 1 2.7 12 9 2 15 . 9 8 22 8 . 6 6 12 8 6 . 2 4 -4 3 . 3 4 -4 5 . 3 3 62 . 5 8 4.43 13 8 6 17 . 5 8 22 9 . 3 6 13 7 6 . 2 4 -6 1 . 1 3 -6 5 . 8 2 89 . 7 1 1.72 14 8 0 17 . 2 7 23 0 . 7 1 14 6 5 . 9 2 -7 9 . 2 1 -8 7 . 3 9 11 7 . 8 6 0.54 15 7 5 16 . 5 6 23 0 . 2 15 5 6 . 8 1 -9 6 . 8 1 -1 0 8 . 7 1 14 5 . 5 0.76 16 6 9 16 . 1 5 22 9 . 5 2 16 4 7 . 0 1 -1 1 3 . 8 7 -1 2 8 . 9 4 17 1 . 9 7 0.48 17 6 3 15 . 4 6 23 0 . 4 4 17 3 7 . 4 5 -1 3 0 . 3 4 -1 4 8 . 5 5 19 7 . 5 7 0.78 18 5 7 16 . 5 1 22 9 . 8 5 18 2 7 . 8 2 -1 4 6 . 9 3 -1 6 8 . 4 1 22 3 . 4 5 1.13 19 5 1 17 . 0 6 23 0 . 5 4 19 1 7 . 8 1 -1 6 4 . 3 -1 8 9 . 2 7 25 0 . 6 0.62 20 4 5 16 . 5 6 23 1 . 5 9 20 0 7 . 8 -1 8 1 . 3 9 -2 1 0 . 4 1 27 7 . 7 8 0.62 21 3 9 15 . 8 5 23 1 . 4 5 20 9 8 . 0 6 -1 9 7 . 7 1 -2 3 0 . 9 5 30 4 0.76 22 3 4 17 . 5 6 23 0 . 4 5 21 8 9 . 0 5 -2 1 4 . 9 2 -2 5 2 . 1 5 33 1 . 3 1.83 23 2 8 16 . 8 7 23 0 . 7 6 22 7 8 . 8 4 -2 3 2 . 5 8 -2 7 3 . 6 4 35 9 . 1 2 0.74 24 2 3 16 . 7 2 23 0 . 5 8 23 6 9 . 7 9 -2 4 9 . 9 8 -2 9 4 . 8 8 38 6 . 5 7 0.17 25 1 7 18 . 5 6 22 8 . 9 7 24 5 9 . 3 6 -2 6 8 . 3 9 -3 1 6 . 6 1 41 5 . 0 5 2.02 26 1 1 17 . 9 6 22 9 . 6 1 25 4 8 . 6 3 -2 8 7 . 6 -3 3 8 . 9 3 44 4 . 5 0.67 27 0 5 17 . 5 4 23 0 . 6 9 26 3 8 . 1 5 -3 0 5 . 9 6 -3 6 0 . 9 3 47 3 . 1 6 0.57 27 9 8 16 . 5 23 0 . 8 2 27 2 7 . 0 8 -3 2 3 . 1 9 -3 8 2 . 0 1 50 0 . 3 8 1.12 Ni c o l a i C r e e k # 1 3 16 Me a s u r e d De p t h In c l i n a t i o n * A z i m u t h T V D Re c t a n g u l a r Co o r d i n a t e (+ ) N / S ( - ) Re c t a n g u l a r Co o r d i n a t e (+ ) E / W ( - ) Ve r t i c a l Se c t i o n DLS ( f t ) ( d e g ) ( d e g ) ( f t ) ( f t ) ( f t ) ( f t ) ( d e g / 1 0 0 f t ) 28 9 2 17 . 5 8 22 7 . 7 1 2 8 1 6 . 9 5 - 3 4 1 . 1 7 -4 0 2 . 8 6 52 7 . 9 1 1.5 29 8 7 16 . 9 6 22 8 . 2 4 29 0 7 . 6 7 -3 6 0 . 0 5 -4 2 3 . 8 1 55 6 . 0 9 0.67 30 8 1 16 . 2 4 22 8 . 8 1 29 9 7 . 7 5 -3 7 7 . 8 4 -4 4 3 . 9 3 58 2 . 9 4 0.79 31 7 5 16 . 8 2 22 9 . 5 3 30 8 7 . 8 7 -3 9 5 . 3 3 -4 6 4 . 1 7 60 9 . 6 8 0.65 32 7 0 17 . 2 2 23 1 . 8 1 31 7 8 . 7 1 -4 1 2 . 9 4 -4 8 5 . 6 8 63 7 . 4 8 0.82 33 6 3 16 . 9 4 23 0 . 8 7 32 6 7 . 6 -4 3 0 -5 0 7 . 0 1 66 4 . 7 9 0.42 34 6 1 17 . 5 6 23 0 . 4 33 6 1 . 2 -4 4 8 . 4 4 -5 2 9 . 4 7 69 3 . 8 5 0.65 35 5 5 16 . 8 8 23 2 . 6 6 34 5 0 . 9 8 -4 6 5 . 7 5 -5 5 1 . 2 5 72 1 . 6 6 1.01 36 4 9 16 . 0 1 23 4 . 7 35 4 1 . 1 4 -4 8 1 . 5 2 -5 7 2 . 6 8 74 8 . 2 1 1.11 37 4 3 16 . 4 23 4 . 1 1 36 3 1 . 4 -4 9 6 . 7 9 -5 9 4 . 0 1 77 4 . 3 7 0.45 38 3 4 15 . 9 7 23 2 . 3 2 37 1 8 . 8 -5 1 1 . 9 8 -6 1 4 . 3 2 79 9 . 6 9 0.72 39 2 8 15 . 9 2 23 3 . 7 2 38 0 9 . 1 8 -5 2 7 . 5 1 -6 3 4 . 9 5 82 5 . 4 8 0.41 40 2 5 13 . 6 8 22 9 . 4 4 39 0 2 . 9 6 -5 4 2 . 8 4 -6 5 4 . 3 9 85 0 . 2 3 2.57 41 1 7 11 . 1 3 23 1 . 6 5 39 9 2 . 8 -5 5 5 . 4 3 -6 6 9 . 6 2 86 9 . 9 9 2.82 42 1 0 10 . 2 4 22 9 . 3 5 40 8 4 . 1 9 -5 6 6 . 3 8 -6 8 2 . 9 4 88 7 . 2 2 1.06 43 0 5 8. 6 9 23 0 . 3 41 7 7 . 9 -5 7 6 . 4 7 -6 9 4 . 8 6 90 2 . 8 5 1.64 44 0 1 8. 2 5 23 3 . 4 7 42 7 2 . 8 5 -5 8 5 . 2 -7 0 5 . 9 8 91 6 . 9 7 0.67 44 9 6 8. 7 6 24 0 43 6 6 . 8 1 -5 9 2 . 8 7 -7 1 7 . 7 2 93 0 . 9 1.15 45 9 0 7. 7 8 21 9 . 3 44 5 9 . 8 5 -6 0 1 . 3 8 -7 2 7 . 9 5 94 4 . 2 1 3.13 46 8 4 8. 2 4 23 0 . 6 8 45 5 2 . 9 4 -6 1 0 . 5 7 -7 3 7 . 1 9 95 7 . 1 9 1.75 47 7 9 8. 6 1 23 4 . 4 9 46 4 6 . 9 1 -6 1 9 . 0 1 -7 4 8 . 2 5 97 1 . 0 9 0.70 48 7 3 8. 6 9 23 6 . 3 2 47 3 9 . 8 4 -6 2 7 . 0 4 -7 5 9 . 8 9 98 5 . 1 6 0.3 49 6 4 11 . 2 8 24 2 . 1 9 48 2 9 . 4 6 -6 3 5 . 0 1 -7 7 3 . 4 8 10 0 0 . 7 3.05 50 2 4 11 . 7 3 24 6 . 0 2 48 8 . 2 5 -6 4 0 . 2 2 -7 8 4 . 2 4 10 1 2 . 3 1.48 50 7 1 11 . 7 3 24 6 . 0 2 49 3 4 . 2 7 -6 4 4 . 1 1 -7 9 2 . 9 7 10 2 1 . 4 9 0 Ni c o l a i C r e e k # 1 3 17 4. 3 . MU D R E C O R D Co n t r a c t o r : H a l l i b u r t o n M u d T y p e s : G e l S p u d M u d 93 . 5 ’ – 7 2 0 ’ ; E Z G e l 3 % K C L P o l y m e r 7 2 0 ’ – 5 0 7 1 ’ DA T E M D M W V I S P V Y P G E L S F L F C S O L O I L / H 2 O SD M B T p H C l - C a + 8/ 1 1 / 2 0 1 3 93 . 5 1 0 1 3 0 19 3 8 2 0 / 2 8 / 3 6 1 0 2 6 . 7 0 / 9 3 N R N R 10.5 1000 NR 8/ 1 2 / 2 0 1 3 51 7 1 0 . 2 8 0 19 3 8 1 8 / 2 7 / 3 8 1 0 2 7 . 7 0 / 9 0 4 5 10 1100 20 8/ 1 3 / 2 0 1 3 72 0 1 0 . 4 6 0 29 1 7 6 / 1 0 / 1 4 1 0 1 1 0 . 7 0 / 8 9 4 . 5 5 9.0 1100 20 8/ 1 4 / 2 0 1 3 72 0 - P i t s E m p t y - - - - - - - - - - - - - 8/ 1 5 / 2 0 1 3 72 0 1 0 6 0 14 2 0 4 / 6 / 7 4 . 5 1 / 0 5 . 7 0 / 9 3 - 2 . 5 9.5 15000 160 8/ 1 6 / 2 0 1 3 72 5 1 0 6 0 20 2 4 7 / 8 / 1 0 4 . 5 1 5 . 7 0 / 9 3 - 2 . 5 1 0 15000 80 8/ 1 7 / 2 0 1 3 17 1 1 9 . 9 5 0 1 3 2 0 5 / 6 / 8 4 . 5 1 6 . 8 0 / 9 2 - 2 . 5 9 . 5 1 5 000 100 8/ 1 8 / 2 0 1 3 26 8 6 9 . 8 4 9 1 6 2 1 5 / 7 / 9 4 . 9 2 6 . 8 0 / 9 2 0 . 5 7 . 5 9 . 3 15000 160 8/ 1 9 / 2 0 1 3 35 5 9 9 . 5 5 3 1 7 2 1 5 6 / 9 / 1 2 5 2 5 . 7 0 / 9 3 0 . 5 7 . 5 9 . 3 15000 160 8/ 2 0 / 2 0 1 3 37 9 0 9 . 5 5 2 2 1 1 9 8 / 9 / 1 1 5 2 5 . 7 0 / 9 3 0 . 7 5 1 0 9 . 5 1 5000 160 8/ 2 1 / 2 0 1 3 44 5 0 9 . 5 4 5 2 0 1 9 4 / 8 / 1 0 4 . 5 2 5 . 7 0 / 9 3 0 . 7 5 1 0 9 . 4 15000 160 8/ 2 2 / 2 0 1 3 47 8 8 9 . 5 5 5 2 1 1 8 7 / 9 / 1 2 4 . 6 2 5 . 7 0 / 9 3 0 . 7 5 1 0 9 . 6 15000 180 8/ 2 3 / 2 0 1 3 48 3 7 9 . 5 5 0 1 9 1 9 6 / 8 / 1 0 4 . 8 2 5 . 7 0 / 9 3 0 . 7 5 1 0 9 . 6 15000 180 8/ 2 4 / 2 0 1 3 50 7 1 9 . 5 5 0 2 0 1 8 4 / 5 / 7 4 . 5 2 5 . 7 0 9 3 0 . 5 0 1 2 9 . 3 1 5000 180 8/ 2 5 / 2 0 1 3 50 7 1 9 . 5 6 0 2 0 1 9 7 / 8 / 1 1 4 . 5 2 5 . 7 0 / 9 3 0 . 5 0 1 2 9 . 4 15000 180 Ni c o l a i C r e e k # 1 3 18 4. 4 . BI T R E C O R D BI T NO . SI Z E ( i n ) TY P E S / N JE T S TF A IN O U T F T H R S AV E RO P WE I G H T O N B I T Lo – A v g – H i AV G RP M PU M P P R E S S U R E Lo – A v g – H i CONDITION 1 1 2 . 2 5 ” RR - HT C M X 1 Wo r n O f f 1x 1 0 3x 1 4 93 ’ 7 2 0 ’ 6 2 7 ’ 3 1 . 5 4 2 0 – 7 . 3 – 1 8 N / A 13 – 42 9 – 80 5 NR 2 7 . 8 7 5 ” HD B S - QH C 1 R 11 4 5 1 1 1 8 3 - 1 6 7 2 0 ’ 3 6 9 2 ’ 2 9 7 2 ’ 3 7 . 5 1 2 6 0 – 1 0 . 7 – 27 N / A 79 6 – 15 3 4 – 19 8 0 2-3-WT-A-E-1-ER-ER 3 7 . 8 7 5 ” HD B S - QH C 1 R 12 0 6 1 9 6 4 3 - 1 6 3 6 9 2 ’ 4 7 8 8 ’ 1 3 0 5 ’ 2 4 . 2 6 6 0 – 1 2 . 3 - 2 8 N / A 3 6 – 2 1 2 1 - 2 6 1 1 1 - 1 - C T - A - E - 1 - W T - B H A 4 7 . 8 7 5 ” RR - HD B S Q HC 1 R 12 0 6 1 9 6 4 3 X 1 6 4 7 8 8 ’ 5 0 7 1 ’ 2 8 3 ’ 1 4 . 9 2 7 5 - 1 1 . 9 - 2 1 N / A 1 3 4 5 - 1 5 6 2 - 2 5 2 0 2 - 4 - C T - A - E - 1 - W T - T D NR = N O T R E C O R D E D Ni c o l a i C r e e k # 1 3 19 4. 5 . DR I L L I N G P R O G R E S S C H A R T 0 ' 1 0 0 0 ' 2 0 0 0 ' 3 0 0 0 ' 4 0 0 0 ' 5 0 0 0 ' 6 0 0 0 ' 8 / 1 0 / 2 0 1 3 8 / 1 2 / 2 0 1 3 8 / 1 4 / 2 0 1 3 8 / 1 6 / 2 0 1 3 8 / 1 8 / 2 0 1 3 8 / 2 0 / 2 0 1 3 8 / 2 2 / 2 0 1 3 8 / 2 4 / 2 0 1 3 8 / 2 6 / 2 0 1 3 8½" hole 12¼" hole Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR S. McGeehan, D. Wallingford DATE Aug 11, 2013 DEPTH 154 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 93.5 24 HOUR FOOTAGE 60.5 CASING INFORMATION 13 3/8" @ 93.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" Haliburton/Tricone 1x10, 3x14 93.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 90.8 @ 122 3.1 @ 115 5.6 45.67 FT/HR SURFACE TORQUE @ 0 @ AMPS WEIGHT ON BIT 12 @ 106 7 @ 154 2.3 7.27 KLBS ROTARY RPM @ . 0 @ RPM PUMP PRESSURE 400 @ 123 13 @ 122 83.9 337.77 PSI DRILLING MUD REPORT DEPTH 93.5 MW 10 VIS 130 PV 19 YP 38 FL 10 Gels 20/28/36 CL- 1000 FC 2/0 SOL 6.7 SD - OIL 0/93 MBL - pH 10.5 Ca+ 1.2 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 107 0 @ 154 0.0 TRIP GAS CUTTING GAS 0 @ 154 0 @ 154 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 154 0 @ 154 0.0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 154 0 @ 154 0.0 AVG PROPANE (C-3) 0 @ 154 0 @ 154 0.0 CURRENT BUTANE (C-4) 0 @ 154 0 @ 154 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 154 0 @ 154 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% claystone 30% sand 20% siltstone PRESENT LITHOLOGY 50% claystone 30% sand 20% siltstone DAILY ACTIVITY SUMMARY Continue rigging up and and building mud. P/U BHA and begin drilling surface hole. CANRIG PERSONNEL ON BOARD 5 DAILY COST $5160.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR Shane Mcgeehan, David Wallingford DATE Aug 12, 2013 DEPTH 613 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 155 24 HOUR FOOTAGE 458 CASING INFORMATION 13 3/8" @ 93.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" Haliburton/Tricone 1x10, 3x14 93.5 13.48 HRS DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 447.4 @ 561 0.4 @ 245 54.3 3.70 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 17 @ 361 0 @ 299 7.2 2.84 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 769 @ 611 164 @ 248 470.8 706.27 PSI DRILLING MUD REPORT DEPTH MW 10.2 VIS 80 PV 19 YP 38 FL 10 Gels 18/27/38 CL- 1100 FC 2/0 SOL 7.7 SD 4 OIL 0/92 MBL 5 pH 10 Ca+ 20 CCI 1000 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 9 @ 337 0 @ 297 2.5 TRIP GAS CUTTING GAS 0 @ 613 0 @ 613 0.0 WIPER GAS 26u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 3537 @ 335 7 @ 297 567.2 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 613 0 @ 613 0.0 AVG PROPANE (C-3) 0 @ 613 0 @ 613 0.0 CURRENT BUTANE (C-4) 0 @ 613 0 @ 613 0.0 CURRENT BACKGROUND/AVG 1 PENTANE (C-5) 0 @ 613 0 @ 613 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 70% Conglomeratic Sand 20% Sand 10% Claystone PRESENT LITHOLOGY 70% Conglomeratic Sand 20% Sand 10% Claystone DAILY ACTIVITY SUMMARY Drilled down to 265' and worked on pump #1. Continue drilling down to 517' and made a short trip out to the 8" collars. Tripped back in hole and drilled ahead. CANRIG PERSONNEL ON BOARD 5 DAILY COST $4,160.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR Shane McGeehan, David Wallingford DATE Aug 13, 2013 DEPTH 720' PRESENT OPERATION Prepping to cement TIME 23:59 YESTERDAY 614' 24 HOUR FOOTAGE 106' CASING INFORMATION 13 3/8" @ 93.5' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" Haliburton/Tricone 1x10, 3x14 93.5 720 626.5 16.51 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 138.7 @ 703 4.4 @ 617 43.1 93.52 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 18 @ 634 3 @ 614 15.2 16.19 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 805 @ 719 688 @ 624 757.0 796.80 PSI DRILLING MUD REPORT DEPTH 720' MW 10.4 VIS 60 PV 26 YP 17 FL 10 Gels 6/10/14 CL- 1100 FC 1/0 SOL 10.7 SD 4.5 OIL 0/89 MBL 5 pH 9.0 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 25 @ 714 0 @ 629 6.7 TRIP GAS 4u CUTTING GAS 0 @ 720 0 @ 720 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 7367 @ 714 114 @ 629 1628.9 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 720 0 @ 720 0.0 AVG PROPANE (C-3) 0 @ 720 0 @ 720 0.0 CURRENT BUTANE (C-4) 0 @ 720 0 @ 720 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 720 0 @ 720 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 70% Claystone 30% Sand PRESENT LITHOLOGY 70% Claystone 30% Sand DAILY ACTIVITY SUMMARY Finished taking survey at 517' with 1 degree deviation. Drilled to a total depth of 720'. Circulated hole clean and made a short trip back to the 8" collars. Circulated clean, rigged up, and took a survey at 720' with 0 degree deviation. Pulled out of the hole and laid down the bottom hole assembly. Rigged up and ran in the hole with 9 5/8" casing. Rigged down casing tools and rigged up Schlumberger cementers. Circulated hole clean and conditioned mud. Set casing shoe at 708' and performed cement job. Pumped 50 bbl 11 ppg mud push, 1/2 bbl water, 90 bbl 12 ppg cement, and 5 bbl water behind. Bumped plug at 48' CANRIG PERSONNEL ON BOARD 4 DAILY COST $4,260.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR Shane McGeehan, David Wallingford DATE Aug 14, 2013 DEPTH 720 PRESENT OPERATION Working on casing TIME 23:59 YESTERDAY 720 24 HOUR FOOTAGE 0 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rigged down SLB cementing equipment, cleaned up rig and cement. Rigged down diver line/mouse hole. Cleaned out pits. Prepared for casing work then cut and weld casing. Continue working on casing. CANRIG PERSONNEL ON BOARD 3 DAILY COST $3,785.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR Shane McGeehan, David Wallingford DATE Aug 15, 2013 DEPTH 720 PRESENT OPERATION Testing BOP's TIME 23:59 YESTERDAY 720 24 HOUR FOOTAGE 0 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10 VIS 60 PV 14 YP 20 FL 4.5 Gels 4/6/7 CL- 15000 FC 1/0 SOL 5.7 SD OIL 0/93 MBL 2.5 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continued working on casing. Rigged up choke line, kill line, etc. Nippled up BOP's after casing cooled off. Rigged up BOP testing equipment and began testing BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4,398.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 16, 2013 DEPTH 989 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 720 24 HOUR FOOTAGE 269 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 821 1.11 207.84 820.98 852 2.58 203.69 851.96 884 4.23 206.75 883.91 915 5.03 208.26 914.80 946 5.38 210.18 945.68 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875" HDBS QHC1R Tricone 11451118 3x16 708' 269' 2.56 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 534.9 @ 924 7.4 @ 803 135.9 169.10269 FT/HR SURFACE TORQUE @ 989 @ AMPS WEIGHT ON BIT 16 @ 720 3 @ 724 8.6 11.09136 KLBS ROTARY RPM @ 989 @ RPM PUMP PRESSURE 1562 @ 985 796 @ 720 1340.6 1462.10010 PSI DRILLING MUD REPORT DEPTH 725' MW 10 VIS 60 PV 20 YP 24 FL 4.5 Gels 7/8/10 CL- 15000 FC 1/0 SOL 5.7 SD OIL 0/93 MBL 2.5 pH 10.0 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 42 @ 921 0 @ 939 13.5 TRIP GAS - CUTTING GAS 0 @ 989 0 @ 989 0.0 WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 10578 @ 921 546 @ 735 2462.5 CONNECTION GAS HIGH - ETHANE (C-2) 0 @ 989 0 @ 989 0.0 AVG - PROPANE (C-3) 0 @ 989 0 @ 989 0.0 CURRENT 10 BUTANE (C-4) 0 @ 989 0 @ 989 0.0 CURRENT BACKGROUND/AVG 13 PENTANE (C-5) 0 @ 989 0 @ 989 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 90%Claystone, 10% Sand PRESENT LITHOLOGY 90%Claystone, 10% Sand DAILY ACTIVITY SUMMARY Finish testing BOP's and R/D testing equipment. P/U BHA and RIH. Displace spud mud with 3% KCL/EZ mud. Drillout cement and floats plus 20' of new hole. R/U for FIT test and test to 16.0ppg EMW. R/U test equipment and begin drilling new hole. Drilling ahead at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4,310.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 17, 2013 DEPTH 1897 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 990 24 HOUR FOOTAGE 907 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1480 17.27 230.71 1465.92 1575 16.56 230.2 1556.81 1669 16.15 229.52 1647.01 1763 15.46 230.44 1737.45 1857 16.51 229.85 1827.82 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875" HDBS QHC1R Tricone 11451118 3x16 708' 1176 11.64 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 539.8 @ 1050 1.6 @ 1757 134.3 99.18 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 20 @ 1874 0 @ 1575 8.6 9.32 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1611 @ 1510 1165 @ 1876 1397.0 1474.24 PSI DRILLING MUD REPORT DEPTH 1711 MW 9.9 VIS 50 PV 13 YP 20 FL 4.5 Gels 5/6/8 CL- 15000 FC 1/0 SOL 6.8 SD OIL 0/92 MBL 2.5 pH 9.5 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 222 @ 1814 1 @ 1297 37.0 TRIP GAS 20 CUTTING GAS 0 @ 1897 0 @ 1897 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 44904 @ 1814 238 @ 1297 7699.1 CONNECTION GAS HIGH 10 ETHANE (C-2) 0 @ 1897 0 @ 1897 0.0 AVG 4 PROPANE (C-3) 0 @ 1897 0 @ 1897 0.0 CURRENT BUTANE (C-4) 0 @ 1897 0 @ 1897 0.0 CURRENT BACKGROUND/AVG 45 PENTANE (C-5) 0 @ 1897 0 @ 1897 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous claystone 30% Sand 20% tuffaceous siltstone 10% Tuffaceous sandstone PRESENT LITHOLOGY 70% Tuffaceous claystone 20% Sand 10% tuffaceous siltstone DAILY ACTIVITY SUMMARY Drilled ahead to 1208', circulated, backreamed 4 times and POOH to the shoe. Ran back to bottom and drilled ahead to 1710' MD. Circulated, back reamed 4 times then short tripped out to 1235'. Ran back to bottom and continued drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4,310.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 18, 2013 DEPTH 2871 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 1897 24 HOUR FOOTAGE 974 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2517.00 18.56 228.97 2459.36 2611.00 17.96 229.61 2548.63 2705.00 17.54 230.69 2638.15 2798.00 16.50 230.82 2727.08 2892.00 17.58 227.71 2816.95 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875" HDBS QHC1R Tricone 11451118 3x16 708' 2150' 22.36 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 541.1 @ 2010 2.0 @ 2826 152.2 4.20 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 22 @ 2371 0 @ 2330 11.6 13.251 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1923 @ 2713 1307 @ 2244 1588.3 1722.90 PSI DRILLING MUD REPORT DEPTH MW 9.8 VIS 49 PV 16 YP 21 FL 4.9 Gels 5/7/9 CL- 15000 FC 2/0 SOL 6.8 SD 0.5 OIL 0/92 MBL 7.5 pH 9.3 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 224 @ 1905 4 @ 2386 43.7 TRIP GAS 28u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 48517 @ 1905 872 @ 2386 9299.2 CONNECTION GAS HIGH 18u ETHANE (C-2) @ @ AVG 6 PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 8 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Sand 30% Tuffaceous sandstone 20% Tuffaceous Claystone 10% Tuffaceous siltstone PRESENT LITHOLOGY 30% Sand 30% Tuffaceous Claystone 20% Tuffaceous siltstone 20% Tuffaceous sandstone DAILY ACTIVITY SUMMARY Continued drilling to 2213' circulated bottoms up 2x and make a 500' short trip. Run back to bottom and drill ahead to 2686', Circulate bottoms up 2x and make a 500' short trip. Repair shakers, run back to bottom and drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4,310.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 19, 2013 DEPTH 3623 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 2871 24 HOUR FOOTAGE 752 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3175.00 16.82 229.53 3087.87 3270.00 17.22 231.81 3178.71 3363.00 16.94 230.87 3267.60 3461.00 17.56 230.40 3361.20 3555.00 16.88 232.66 3450.98 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875" HDBS QHC1R Tricone 11451118 3x16 708' 3623' 35.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 442.5 @ 2946 3.5 @ 2997 89.4 24.89 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 27 @ 3316 1 @ 3580 12.3 15.69 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1980 @ 3247 1383 @ 3408 1682.9 1801.96 PSI DRILLING MUD REPORT DEPTH 3559 MW 9.5 VIS 53 PV 17 YP 21 FL 5.0 Gels 6/9/12 CL- 15000 FC 2/0 SOL 5.7 SD 0.5 OIL 0/93 MBL 7.5 pH 9.3 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 103 @ 2873 0 @ 3398 15.5 TRIP GAS 7u CUTTING GAS @ 0 @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 21469 @ 3476 72 @ 3398 3289.3 CONNECTION GAS HIGH 21u ETHANE (C-2) @ @ AVG 4u PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 6u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% sand 20% tuffaceous claystone 20% tuffaceous sandstone 10% conglomeratic sand 10% coal PRESENT LITHOLOGY 30% sand 30% tuffaceous claystone 20% tuffaceous sandstone 10% conglomeratic sand 10% coal DAILY ACTIVITY SUMMARY Drilled to 3184', circulated bottoms up and tripped out 500'. Tripped back to bottom, circulate and condition mud and drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4110.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 20, 2013 DEPTH 3942 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 3623 24 HOUR FOOTAGE 319 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3649.00 16.01 234.70 3541.14 3743.00 16.40 234.11 3631.40 3834.00 15.97 232.32 3718.80 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875 HDBS QHC1R Tricone 11451118 3x16 708' 3688' 2980' 37.55 2-3-WT-A-E-1-ER-PR 3 7.875 HDBS QHC1R Tricone 12061964 3x16 3688' 254' 4.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 293.3 @ 3767 4.0 @ 3760 64.2 87.78 FT/HR SURFACE TORQUE @ @ 0.0 AMPS WEIGHT ON BIT 23 @ 3710 4 @ 3769 14.2 11.07 KLBS ROTARY RPM @ @ 0.0 RPM PUMP PRESSURE 2235 @ 3865 1664 @ 3635 2019.9 2109.29 PSI DRILLING MUD REPORT DEPTH 3790 MW 9.5 VIS 52 PV 21 YP 19 FL 5.0 Gels 8/9/11 CL- 15000 FC 2/0 SOL 5.7 SD 0.75 OIL 0/93 MBL 10.0 pH 9.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 74 @ 3630 2 @ 3812 10.0 TRIP GAS 410u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 12672 @ 3630 457 @ 3812 1748.2 CONNECTION GAS HIGH 8u ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 8u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% Tuffaceous Sandstone 30% Tuffaceous claystone 30% Sand 10% Tuffaceous Siltstone PRESENT LITHOLOGY 30% Tuffaceous claystone 20% Sand 20% Tuffaceous Siltstone 20% Tuffaceous Sandstone 10% Carbonaceous Shale DAILY ACTIVITY SUMMARY Continued drilling ahead to 3688'. Circulate then pump a dry job and POOH. L/D BHA and swap out bits. RIH, test MWD tools at 750' then run to bottom. 418 units of trip gas after only 1640 strokes into bottoms up circulation. Finished circulating and began drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4110.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 21, 2013 DEPTH 4597 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 3942 24 HOUR FOOTAGE 655 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4210.00 10.24 229.35 4084.19 4305.00 8.69 230.30 4177.90 4401.00 8.25 233.47 4272.85 4496.00 8.76 240.00 4366.81 4558.35 8.26 228.77 4428.47 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 7.875 HDBS QHC1R Tricone 12061964 3x16 3688' 909' 17.56 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 363.5 @ 3977 2.1 @ 4127 72.0 35.52 FT/HR SURFACE TORQUE @ 0 @ AMPS WEIGHT ON BIT 28 @ 4483 0 @ 4545 12.5 8.03 KLBS ROTARY RPM @ 0 @ RPM PUMP PRESSURE 2465 @ 4189 1063 @ 4452 2107.6 2174.60 PSI DRILLING MUD REPORT DEPTH 4450 MW 9.5 VIS 45 PV 20 YP 19 FL 4.5 Gels 4/8/10 CL- 15000 FC 2/0 SOL 5.7 SD 0.75 OIL 0/93 MBL 10.0 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 83 @ 4256 0 @ 4567 9.3 TRIP GAS 17u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 18714 @ 4256 202 @ 4567 2028.7 CONNECTION GAS HIGH 30u ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 5u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous claystone 30% Tuffaceous Sandstone 20% Conglomeratic sand 10% Sand PRESENT LITHOLOGY 30% Conglomeratic sand 20% Tuffaceous Sandstone 20% Tuffaceous claystone 20% Sand 10% Tuffaceous Siltstone DAILY ACTIVITY SUMMARY Drilled ahead to 4193' and short tripped out to 3650'. Ran back in and continued drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4110.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 22, 2013 DEPTH 4788 PRESENT OPERATION Testing BOP's TIME 23:59 YESTERDAY 4597 24 HOUR FOOTAGE 191 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4684 8.24 230.68 4552.94 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 7.875 HDBS QHC1R Tricone 12061964 3x16 3688' 4788' 1100' 24.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 224.3 @ 4742 2.6 @ 4754 41.3 3.31 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 20 @ 4701 0 @ 4739 10.4 10.01 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2611 @ 4748 36 @ 4742 2242.8 2520.66 PSI DRILLING MUD REPORT DEPTH 4788' MW 9.5 VIS 55 PV 21 YP 18 FL 4.6 Gels 7/9/12 CL- 15000 FC 2/0 SOL 5.7 SD 0.75 OIL 0/93 MBL 10.0 pH 9.6 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 167 @ 4640 2 @ 4743 26.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 37054 @ 4640 205 @ 4727 5873.0 CONNECTION GAS HIGH 31u ETHANE (C-2) 93 @ 4640 0 @ 4597 12.4 AVG PROPANE (C-3) 14 @ 4678 0 @ 4714 0.8 CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Claystone 30% Conglomeratic sand 20%Tuffaceous Sandstone 10% Coal PRESENT LITHOLOGY 40% Tuffaceous Claystone 20% Coal 20% Conglomeratic sand 20%Tuffaceous Sandstone DAILY ACTIVITY SUMMARY Continued drilling to 4788'. ROP dropped to ~10 fph due to bit/MWD tool damage. Flow rate and annular velocity also dropped drastically due to running on one pump. Insufficient hole and descision made to POOH and change out BHA. POOH and rig up BOP testing equipment. Testing BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4110.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 23, 2013 DEPTH 4885 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 4788 24 HOUR FOOTAGE 97 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4779 8.61 234.49 4646.91 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 7.875 HDBS QHC1R Tricone 12061964 3x16 4788' 97' 5.4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 121.9 @ 4873 1.7 @ 4824 32.7 37.01 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 21 @ 4796 5 @ 4856 9.3 8.21 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 2520 @ 4788 1430 @ 4881 1589.4 1477.45 PSI DRILLING MUD REPORT DEPTH 4837' MW 9.5 VIS 50 PV 19 YP 19 FL 4.8 Gels 6/8/10 CL- 15000 FC 2/0 SOL 5.7 SD 0.75 OIL 0/93 MBL 10.0 pH 9.6 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 6 @ 4793 1 @ 4843 2.8 TRIP GAS 83u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 1550 @ 4793 333 @ 4813 583.5 CONNECTION GAS HIGH ETHANE (C-2) 42 @ 4793 0 @ 4874 9.1 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% Conclomeratic sand 20% Conglomerate 15% Tuffaceous Claystone 15% Tuffaceous Sand PRESENT LITHOLOGY 50% Conclomeratic sand 20% Conglomerate 15% Tuffaceous Claystone 15% Tuffaceous Sand DAILY ACTIVITY SUMMARY Finished testing BOP's and R/D testing equipment. P/U BHA and new mud motor. RIH to bottom and begin drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4410.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 24, 2013 DEPTH 5071' PRESENT OPERATION Circulating TIME 23:59 YESTERDAY 4885' 24 HOUR FOOTAGE 186' CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 7.875" HDBS QHC1R Tricone 12061964 3x16 4788' 283' 14.95 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 139.3 @ 5071' 0.3 @ 5023' 24.9 139.32 FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT 21 @ 5011' 7 @ 5015' 13.3 16.84 KLBS ROTARY RPM @ @ RPM PUMP PRESSURE 1741 @ 5043' 1345 @ 5015' 1555.5 1627.10 PSI DRILLING MUD REPORT DEPTH 5071' MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 33 @ 4954' 1 @ 4889' 6.5 TRIP GAS 23u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 7581 @ 4953' 367 @ 4889' 1400.9 CONNECTION GAS HIGH ETHANE (C-2) 22 @ 4951' 0 @ 4978' 2.4 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% Tuffaceous Sandstone 20% Sand 10% Conglomeratic Sand 10% Tuffaceous claystone PRESENT LITHOLOGY 40% Tuffaceous Sandstone 30% Sand 20% Tuffaceous claystone 10% Conglomeratic Sand DAILY ACTIVITY SUMMARY Drilled to TD at 5071' and circulated. Short trip out to the shoe then run back into the hole. Circulating at report time. CANRIG PERSONNEL ON BOARD 3 DAILY COST $3885.00 REPORT BY Josh Dubowski Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek Unit 13 REPORT FOR David Wallingford, Gary Goerlich DATE Aug 25, 2013 DEPTH 5071 PRESENT OPERATION Wireline TIME 23:59 YESTERDAY 5071 24 HOUR FOOTAGE 0 CASING INFORMATION 9.625" @ 708' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 5071 MW 9.5 VIS 60 PV 20 YP 19 FL 4.5 Gels 7/8/11 CL- 15000 FC 2/0 SOL 5.7 SD 0.50 OIL 93/0 MBL 12.0 pH 9.4 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Finished circulating after wiper trip and POOH and L/D BHA. R/U Haliburton wireline equipment and commence wireline operations. CANRIG PERSONNEL ON BOARD 3 DAILY COST $3748.00 REPORT BY Josh Dubowski