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212-193
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 ninspection of the file. (121 - 1 `� 3 Well History File Identifier Organizing (done) ❑ Two-sided ❑ Rescan Needed RESCAN: OVERSIZED: NOTES: vZolor Items: ❑ Maps: u24rayscale Items: Logs: ❑ Poor Quality Originals: ❑ Other: ❑ Other: BY: AD Date: I a— s /s/ u • Project Proofing BY: Maria Date: ' rg_ I S lslMI° Scanning Preparation 0 x 30 j(3'27 + 13 = TOTAL PAGES { 0 3 (Count does not include cover sheet) ty� BY: Maria Date_ 15 /sl Production Scanning Stage 1 Page Count from Scanned File: 1 0 t '(Count does include coy sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: din. Date: I/i / 15 /s/ rif Stage 1 If NO in stage 1, page(s) discrepancies wer found: YES NO BY: Maria Date: /s/ Stage 2 Additional Well Reports: NO TOTAL PAGES: `i I Digital version appended by: Meredith Michal lvt Oar Date: 1 5!15 /s/ Final Page Count: Stage 1 + Stage 2: TOTAL PAGES: )ifs- 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 o z o . ( o o m 5) 5) NI• 9 (0 co • N m (.0 (0 U) (n In N y NZ CO co co co m co Cu co co co CO U O Y Y l0 (n I-- CO V CO CO V m m m 7 p Z .-----.. Q 00 N- co In a M O co N V CO pp M N I O co M N N N N N N 0 0 0 < N ❑ a) a) co m (0 Q O O F Q Q Q Q Q Q Q Q F I— F ct o 0 ❑ () 'O Q O N M to O n N M V _ CO O d N ) it a)R1 a) a) F1 F1 a) a) a) a) a) a) a) a) a) a) a) m Z 2 Epi E E v - EEEEEEEEEEEE o m m co Cu Cu CO CO Cu CO CO CO m CO CO 2o C C 0 o C C C C C C C C C C C C Qa)Z O a) C CI a) a) a) Cl.) 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I— ° E • co N g al a " m 1 CO Y c ° E c p H E 7) y :° .-• U d n J m (n c 0 O O c Z ° Z m To U a Q p ° as O I Z1 N U T III III 0 • 0 o 2 0 11 RTo I Za3 c (o a3 a7 III co CO CO co it moo� O D - C ® N o 0 IIO ( 6 6 5 E O c To co o c ``) 11 > ao co m co (o w W > m a) ~ I0 0 N- N- C I > a) w v uJ E a O al N N N N N N 1 SII W )\ H d a y c p _ Tn Z co U 'Ir c 2 d o m O i v O c0 1 y Q 0 p < O O w c 1 c CJ .. `� ',U U U U U V 1 a 3 0 I 0- m I E Ii . c• E I O v m w+ 1 O O LL o d E Q a 2 -W ct W w w 3 Z U a 0 ' 0 o C 1 0 ci Guhl, Meredith D (DOA) From: Ed Jones [jejones@aurorapower.com] Sent: Thursday, August 21, 2014 2:57 PM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA); George Pollock Subject: RE: NCU 14, PTD 212-193, Additional Data required Attachments: Sperry NCU_14_Final_Surveys.pdf; NCU 14 Final Surveys.txt; NCU #14 Final Surveys.xlsx Meredith, Here is the final version of the Nicolai Creek 14 directional survey in all three formats requested. (We have also requested that Halliburton provide the log data requested for NC 13). Please let me know if you need any additional information. Regards, Ed J. Edward Jones President Aurora Gas, LLC 4645 Sweetwater Blvd.,Ste 200 Sugar Land,Texas 77479 832-939-8991 (0) 713-899-8103(C) From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Thursday, August 21, 2014 4:02 PM To: Guhl, Meredith D (DOA); Ed Jones Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: NCU 14, PTD 212-193, Additional Data required Dear Mr.Jones, Thank you for the paper plots and digital data supplied by Matt Cook for the Halliburton logging completed on NCU 14, PTD 212-193. The only remaining required item for this well are two digital versions of the directional survey. I need both a PDF version of the survey and an excel or text version. Please submit the survey data to me,via email, by August 22, 2014. If you have any questions, please contact me. Thank you, 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 1 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. From: Guhl, Meredith D (DOA) Sent: Tuesday, July 22, 2014 11:34 AM To: 'jejones@aurorapower.com' Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: NCU 14, PTD 212-193, Additional Data required Dear Mr.Jones, I am completing the final compliance check for NCU 14, PTD 212-193,completed on 8/1/2013. 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 25.050 (d)the operator shall file with the Commission (d)... a complete digital copy of each inclination and directional survey not previously filed must be filed with the commission in a format acceptable to the commission. An ASCII or Excel version of the final definitive survey, along with a PDF version, is required.At this time, no digital survey data is on file for this well. Also, 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 and Stick Diagram plot. Digital data includes LAS and PDF files. Please also supply a paper copy of the Wave Sonic log and the Extended Range Micro Imaging Log, completed on 18-July-2013. I've attached the first page of each of these logs from the digital PDF. Finally, in your email of 10/21/2013,to Patricia Bettis,you mentioned that you would forward a Wave Sonic LAS when you located the file. Could you please include this LAS when you send the other data requested above? Please provide the digital data and the paper logs 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 2 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. 3 23c50,. WELL LOG TRANSMITTAL To: Alaska Oil and Gas Conservation Comm. August 5, 2014 Attn.: Meredith Guhl 333 West 7th Avenue, Suite 100 Anchorage,Alaska 99501 RE: XRMI Tadpole and Stick Diagram: NICOLAI CREEK NO.14 Run Date: 7/22/2014 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Matthew Cook,Halliburton Wireline &Perforating, 6900 Arctic Blvd.,Anchorage,AK 99518 matthew.cook@halliburton.corn NICOLAI CREEK NO.14 Digital Log Image file 1 CD Rom 50-283-20672-00 PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Halliburton Wireline &Perforating Attn: Matthew Cook 6900 Arctic Blvd. Anchorage,Alaska 99518 Office: 907-273-3572 Fax: 907-273-3535 matthew.cook@hal l iburton.corn AUGRECF ;V D CD2L--c 0 6 2 014 Date: Signed: Angela K. Singh AOGCC x (02— ITS 2 3507- WELL LOG TRANSMITTAL To: Alaska Oil and Gas Conservation Comm. July 30, 2014 Attn.: Meredith Guhl 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: XRMI Tadpole Plot: NICOLAI CREEK NO. 14 Run Date: 7/19/2013 The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Matthew Cook, Halliburton Wireline &Perforating, 6900 Arctic Blvd., Anchorage,AK 99518 matthew.cook@halliburton.com NICOLAI CREEK NO. 14 LAS format Di i i es Jnw rrc As . 1 CD Rom 0-283-20672-00 WaveSonic Log (Field Print) 023507_ 1 Color Log 50-283-20672-00 PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Halliburton Wireline&Perforating Attn: Matthew Cook 6900 Arctic Blvd. Anchorage, Alaska 99518 Office: 907-273-3572 Fax: 907-273-3535 matthew.cook@l�o �m D Date: q t i r, Q 1 2014 Signed: Angela K. Singh AOGCC ala -i93 03507" WELL LOG TRANSMITTAL To: Alaska Oil and Gas Conservation Comm. July 24, 2014 Attn.: Makana Bender DATA LOGGED 333 West 7th Avenue, Suite 100 /2014 M.K.SENfEq RECEIVED Anchorage, Alaska 99501 JUL 2 8 2014 RE: Quad Combo, XRMI, SFT: NICOLAI CREEK NO. 14 Run Date: 7/19/2013 AOGCC The technical data listed below is being submitted herewith. Please address any problems or concerns to the attention of: Matthew Cook, Halliburton Wireline& Perforating, 6900 Arctic Blvd., Anchorage, AK 99518 matthew.cook@halliburton.com NICOLAI CREEK NO. 14 LAS format, DOA'1 g Image files 1 CD Rom )D-283-20672-00 Pvi0" BHV Log • Print) � A�� 1 Color Log 50-283-20672-00 ✓,"T Composit (Field Print) 11,,.,9. 1 Color Log 50-283-20672-00 1 SFT Log (FeldriP nt) 1 Color Log 50-283-20672-00 XRMI Log (Field Print) a o 1 Color Log 50-283-20672-00 WaveSonic Semblanc roc esse d Print)buio 1 Color Log - 0672-00 XRMI Tadpole g (Processed Print) 1 Color Log -283-20672-00 Dutio . PLEASE ACKNOWLEDGE RECEIPT BY SIGNING AND RETURNING A COPY OF THE TRANSMITTAL LETTER TO THE ATTENTION OF: Halliburton Wireline&Perforating Attn: Matthew Cook 6900 Arctic Blvd. Anchorage, Alaska 99518 matthew.cook@halliburton.com Date: 7"/2_11/`� Signed: Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, July 22, 2014 11:34 AM To: 'jejones@aurorapower.com' Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: NCU 14, PTD 212-193, Additional Data required Attachments: Page 1 NCU-14 XRMI_19JUL13.pdf; Page 1 NCU-14_WAVE_19JUL13.pdf Dear Mr.Jones, I am completing the final compliance check for NCU 14, PTD 212-193, completed on 8/1/2013. 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 25.050(d)the operator shall file with the Commission (d)... a complete digital copy of each inclination and directional survey not previously filed must be filed with the commission in a format acceptable to the commission. An ASCII or Excel version of the final definitive survey, along with a PDF version, is required. At this time, no digital survey data is on file for this well. Also, 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 and Stick Diagram plot. Digital data includes LAS and PDF files. Please also supply a paper copy of the Wave Sonic log and the Extended Range Micro Imaging Log, completed on 18-July-2013. I've attached the first page of each of these logs from the digital PDF. Finally, in your email of 10/21/2013,to Patricia Bettis,you mentioned that you would forward a Wave Sonic LAS when you located the file. Could you please include this LAS when you send the other data requested above? Please provide the digital data and the paper logs 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 Schwartz, Guy L (DOA) From: Ed Jones <jejones@aurorapower.com> Sent Tuesday,June 10, 2014 8:43 AM To: Schwartz,Guy L(DOA) Cc: George Pollock; Davies, Stephen F(DOA) Subject: RE: NC 14 Wellhead leak. (212-193) Guy, I can't find any follow-up correspondence about this matter. The well head was sent back into GE, but I don't remember a follow-up report, so I have a message into Andrew Cater, our GE sales rep (who is out of the office this week),to see what was done and what was determined. Basically,what we determined to have happened was that the BOP stack was not equalized with the restraining chains,which allowed some differential strain when making or breaking connections.The fix was to equalize the restraining chains. There is also some concern that the weld was allowed to cool too fast. These issues were addressed on our second well,and we had no failures there. I will follow-up with GE and see if any analysis was made of the failure,and if so,get that determination to you. Regards, Ed J. Edward Jones President Aurora Gas, LLC 4645 Sweetwater Blvd.,Ste 200 Sugar Land,Texas 77479 832-939-8991 (0) 713-899-8103 (C) From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Monday, June 09, 2014 7:44 PM To: Ed Jones Cc: George Pollock; Davies, Stephen F(DOA); George Pollock Subject: RE: NC 14 Wellhead leak. (212-193) Ed, I know we discussed the wellhead issue by phone I don't have a record of any email though explaining what the cause was . Do you have anything you can send me? Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). 1 From: Schwartz, Guy L(DOA) Sent: Monday,July 22, 2013 10:49 AM To: Ed Jones Cc: Aurora Company Man; Davies, Stephen F (DOA); George Pollock Subject: Re: NC 14 cement plug Ed, Using RTTS is acceptable for pressure test of the retainer and plug.. Make sure we get a full report on the wellhead leak after you have more info. After cutoff assume you will ship to vendor for evaluation and failure report. Guy Schwartz Sent from my iPhone On Jul 22,2013,at 8:59 AM, "Ed Jones"<ieiones@aurorapower.com>wrote: Guy, I called this morning to update you on the abandonment of Nicolai Creek#14 and left a message, but an email might be helpful. Following my note below regarding the open-hole plug(sent yesterday), we set a retainer at 650' and pumped 20 bbl (90 sx) of 15.3 ppg G cement, squeezing 15 bbl below the retainer at 300 psi, and leaving 5 bbl on top of the retainer. We are now preparing to pressure test the plug. However,we are going to deviate from the Procedure: rather than close the blind rams and pressure the casing and plug to 1500 psi, we are running an RTTS packer to about 600', setting it, and testing the plug below it to 1500 psi—I believe that this meets the requirements. The reason for doing this is because when we closed the blinds and pressured up, we found a leak at 700 psi below the casing head. Apparently the movement of the BOP stack sometime during operations subsequent to the 1500-psi test on 7/8/13 had cracked the weld and compromised the 0 ring—this is an issue that we are looking into and are working with GE (Vetco)to remedy (prevent) on our next well. Please let me know if this method of testing the plug is not acceptable. Attached is the signed Sundry, an unsigned copy of which and Procedure were provided to your electronically on 7/20/13. Paper copies of the Sundry Notice and Procedure will be mailed. I did just get your email approving the open-hole plug. Please let me know if you have questions or concerns. Thanks, Ed J. Edward Jones President Aurora Gas, LIC 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: Sunday,July 21, 2013 3:50 PM To: 'Jim Regg'; 'Schwartz, Guy L(DOA)' Cc: 'Aurora Company Man' Subject: RE: NC 14 cement plug We did actually increase the cement volume last night to 50 bbl of 15.3 ppg cement. From the Halliburton Borehole Volume Log, based on the caliper run with the Platform Express log,with the top at 2746',the bottom of the plug should be at 3564', not quite to the 3600' planned. Please let us know 2 ASAP if this is not acceptable, considering that we had pumped another 4_, .sol of cement previously, which appears to be below 3920'. As Jon mentioned, we are preparing to set the cement retainer in the 9-5/8" casing and squeezing 15 bbl of 15.3 ppg G cement below it with 5 bbl on top of it,then pressure testing to 1500 psi. 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: Aurora Company Man [mailto:wellsitesuper(thaurorapower.com] Sent: Sunday, July 21, 2013 3:12 PM To: Ed Jones; Jim Regg Cc: quy.schwartz@alaska.gov Subject: NC 14 cement plug Saturday morning we spotted a 45 bbl.Cement plug at 3706'and pulled up to 2100"to WOC.We ran in the hole yesterday afternoon but did not encounter any firm cement. Did encounter green contaminated at 3600'. RIH to 3920'and spotted Hi Vis pill than pulled up to 3670'and another 45bbl. Cement plug. We just ran in the hole and tagged firm cement at 2746',we set 10K down on it twice to confirm it was hard cement. Plans are now to POH laying down drill pipe, standing back 700'to set the plug at the shoe. We do have a 9 5/8 retainer on location with running tools and a Halliburton hand for setting it. Jon West Aurora Gas, LLC <NC 14 PA Sundry Notice.pdf> 3 t , STATE OF ALASKA RECEIVEC ALASKA OIL AND GAS CONSERVATION COMMIS;..-01 WELL COMPLETION OR RECOMPLETION REPORT AND LOG OC 12 x 2010 la Well Status: Oil❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑� • Suspended❑ lb.Well Class: ,� b ( C 20AAC 25105 20AAC 25110 Development E. Expl6Th C GINJ ❑ WINJ 0 WAG❑ WDSPL❑ No.of Completions: Service 0 Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: AURORA GAS,LLC Aband.: 8/1/2013 . 212-193 3.Address: 6.Date Spudded: 13.API Number: 1400 WEST BENSON,#410,ANCHORAGE,AK 99503 7/3/2013 50-283-20172-00-00 ' 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 973'FSL,624'FEL,SE/4 Sec. 18,T11N,R12W,S.M. 7/17/2013 . NICOLAI CREEK UNIT#14 Top of Productive Horizon: NA 8.KB(ft above MSL): 298 15.Field/Pool(s): GL(ft above MSL): 282 Nicolai Creek Unit ' Total Depth: 9.Plug Back Depth(MD+TVD): . North Undefined Gas 2027'FSL, 1333'FEL,Sec. 18,T11N,R12W,S.M. SURF(GL-4') 4b.Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+ND): 16.Property Designation: Surface: x- 240,889 y-2,574,784 Zone- 4 4830'/4554' ADL-391472 Surf/-391265 BH , TPI: x- y- Zone- ' 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 240,181 y- 2,575,838 Zone- 4 NA CIRI 18.Directional Survey: Yes Q 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 CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE _ CEMENTING RECORD �. PULLED 13.375 68 K-55 GL 94'GL I GL 94'GL DRIVEN DRIVEN 0 9.625 36 J-55 SURF 700'KB SURF 700'KB 12.25" 97 bbl(318 sx)Light G 0 . 24.Open to production or injection? Yes ❑ No Q 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. :.1111 I3 Was hydraulic fracturing used during completion? Yes❑ No ❑✓ \l1 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED Ott" 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(corr): Press. '24-Hour Rate .4. 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 0 204 Form 10-407 Revised 10/2012 CONTINUED ON REVERSE Pt/-,6 0),(elly Submit original only • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME I MD TVD Well tested? ❑ Yes n 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 620 620 Top Tyonek Marker Coal 1890 1823 Carya 2-1 Coal 2082 1998 Carya 2-2 Coal 2606 2443 Carya 2-3 Coal 2760 2578 Carya 2-4.0 Coal 3242 2998 Carya 2-4.1 Coal 3300 3050 Carya 2-4.2 Coal 3462 3201 Carya 2-5 Coal 3746 3476 Carya 2-5.2 Coal 3824 3554 Carya 2-6 Coal 3990 3718 Carya 2-7 Coal 4304 4034 Formation at total depth: Upper Tyonek 31. List of Attachments: Daily Operations Summary,Final(P&A)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: jeiones@aurorappwer.com Printed Name: J.Ed rd Jones - Title: President Signature: Phone: 281-495-9957 X-201 Date: 10/14/2013 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-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection,Observation,or Other.Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI(Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 Surface]Plug:19 bbl(86 sx) µ AKS Class G Cement at 15.3 ppg, 14UIiDr� Gas, LLC ��4 ��: �' ' ' ' est.bottom at 203',top at ., v ' '.. '''r.,,.''st- ,►.j 4 't cut-0ff,5J'below GL NIC®LAI CREEK ,,,,,,,t,—... , 3 " u/�/ ' , , Conductor drivenStructral to 94'GL UNIT #14 FINAL PLUGGED and 4$ ;r i� d ABANDONED ° $ 9-5!$" 36#Surface Casing set at a :41..x,..1.21-,..„0,-...4-, . 700'and Cemented w/97 bbl(318 r$ ., ' xsx)12.0 ppg LW Class G Drill 12-I/4"Hole to 714' _.._ Accelerated Cement '� 9-5/8"Casing Piug:Retainer set at Formation Tops - 625'and cemented with 20 bbl (90 Beluga_ 700'14ID/TVD ,.;r1'.. '' �' ax)Class G Cement at 15 3 ppg,15 Carya 2-1-1889'MD bbl belowttretainer and 5810'bbl aboveest.. Carya 2-22345' l is and Carya 2-3-2845'Ml) ,ug Carya 2 d 3110'NID ( ' topEat ofboplugom is 564. B Carya 2-4.1--3302'Mr Carya 2-4.23462'M) 4 I) I. Carya 2-5-3745'MD Carya 2-6-3982'MI) - Carya 2-7-4480'MI) Carya 2-1 1 '; I Wellbore filled with j 9.8 ppia Mud • Carya 2-3 /, . 1 4 : Second Plug:54 bbl(226 sx) Carya 2-4.1 r '" 15.3 ppg G cement w1 top at r5 r "dam 2746'(tagged and est.bottom " at 3580' Carya 2-4.2 $ ,T . I ' '7 <`. 1, Carya 2-5 �) '. ppgFirst G cePlug:45 bbl(204 sx)15.3 ment. Est top at 3950' Carya 2-6 c AIIy arT '" and est bottom at 4600' fir. �: Carya 2-7s . Drilled 7-7/8"Hole to 4830' * '' = , MD/4554"TVD � "�'t 1 ;` AURORA GAS, LLC NICOLAI CREEK NO. 14 (AOGCC PERMIT No. 212-193) (API No. 50-283-20172-00) DRILLING AND PLUG AND ABANDONMENT OPERATIONS SUMMARY 5/7/13—Construction authorization from CIRI received. Pad construction started shortly thereafter by Tyonek Contractors. 6/12/13—Move in Kraxburger and related equipment to drive conductor. Pad construction continuing 6/13/13—Kraxburger drove 13-3/8" 68#K-55 conductor casing to 94' from GL(not final grade—ended up being 106' KB). RD and release Kraxburger. Pad construction continuing 6/19/13—Dig mousehole and cellar. Pad construction continuing. 6/20/13—Set mousehole and cellar ring. Pad construction continuing. 6/26/13--Install starting head and diverter tee on conductor. Pad construction continuing. 6/27/13—Final grade on pad. Lay felt and liner for rig containment. MI and RU rig and support equipment. 6/28/13—Finished laying liner and mats for rig. Place mud boat and carrier. Continue MI and RU support equipment. 6/29/13—Continue MI and RU. 6/30/13—Raise derrick. Continue MI and RU. 7/1/13--Continue MI and RU. 7/2/13—Install flow nipple, containment berm,PVT system. Finish installing diverter system. Dig cuttings temporary storage pit. 7/3/13--Continue rig up. Mix 200 bbl 10.0 ppg spud mud. Line cuttings pit. AOGCC diverter test. PU BHA. Spud at 2130. Tag at 98'. Drill to 113'. 1 7/4/13-Drill from 113 to 516'. Short trip. 10 ppg. 7/5/13-Surveyed-1 deg. Drill 516-710'. Wiper trip to conductor. Survey-1 deg. Circ and condition for surface casing. 10 ppg. 7/6/13-POOH, laying down 8"BHA. RU Weatherford casing crew. Ran 700' (18 jts) 9-5/8" 36#J-55 LTC surface casing. Circ and condition. Pump 50 bbl"Mud Push" spacer. Mix and pump 97 bbl 12.0 ppg light Class G cement slurry w/defoamer, dispersant, gas block, &accelerator at 1.71 cf/sk. Displace with 5 bbl water+40 bbl mud with good cement returns-40 bbl to surface. Did not bump plug. Floats held. RD SLB cementers. WOC. RD diverter lines. 7/7/13-RD divertor stack and starting head. Cut of 9-5/8"casing. Weld on casing head-test to 500 psi. NU 11"X 3000 psi BOP stack. 7/8/13-RU choke and lines. Test BOP's-witness waived. RU trip tank and gas buster. PU directional BHA and RIH,picking up DCs' Tag cement at 611'. Check functionality of Sperry directional and MWD tools and Canrig mud logging equipment. Drill cement to 640'. Test casing to 1500 psi for 30 minutes-good. Thin mud. 10.0 PPg• 7/9/13-Swap from spud mud to 10.4 ppg Baroid EZ mud. Drill cement to 689', drill shoe track and 20' new hole to 736'. Perform FIT to 16.0 ppg EMW (220 psi w/ 10.4 ppg mud). Drill and slide to 959'. Survey. Drill and slide to 1146'. 10.4 ppg. 7/10/13-Drill and slide to 1209'. Wiper trip to shoe (700'). Drilled to 1650'. Short trip to 1200'. Drill and slide to 1899'. 10.2 ppg. 7/11/13-Drilled to 2150'. Short trip to 1650'. Drilled to 2653'. Short trip to 2150'. Drilled to 2684'. 10.0 ppg. 7/12/13-Drilled to 3157'. Short to 2653'. Survey. Drilled to 3187'. 9.95 ppg. 7/13/13-Drilled to 3525'. Unable to slide. Pump high-vis pill and POH with tight spots. Bit damaged. 9.95 ppg. 7/14/13-Finish LD BHA. Test BOP's-witness waived. Change pump liners from 6" to 5-1/2". PU BHA. RIH,testing motor and electronics at 400'. RIH. 9.8 ppg. 7/15/13-Fin RIH. Survey. Drill and slide to 4035'. Survey. Short trip to 3533'hole tight 3533-3752'. 9.8 ppg. 7/16/13-Fin RIH to 4035'. Drilled to 4474'. Wiper trip to 3980'. Drilled to 4725'. 9.8 PPg• 2 7/17/13—Drilled to 4730'. Pump high-vis sweep. POH to 9-5/8" shoe. RIH to 4730 with tight spots. Drill to TD of 4830'. Start POH. 9.8 ppg. 7/18/13—POH to 3030' for wiper trip. RIH to TD of 4830'. Circ and condition. POH. RU HES loggers. Logging run#1—Platform Express (SP-GR-AI-D-N). Start logging run#2—XRMI—dip meter mode. 9.8 ppg. 7/19/13—Fin XRMI run. Logging run#3—SFT express pressures. RD HES. RIH w/ mule shoe on DP. W.O.O. POH, LD 35 jts DP to 3706'. RU SLB cementers. Circ and condition hole and mud. Mix Mud Push sweep. Pull up to 3670'. 9.8 ppg. 7/20/13—Pump 13 bbl 11.5 ppg Mud Push+45 bbl 15.3 ppg cement+ 5 bbl 11.5 ppg F Mud Sweep, displace with 23 bbl mud(balanced plug). RD SLB. Pull and stand back 14 stds. Rev out. POH, laying down 20 jts DP. WOC 8 hrs. RIH w/ 14 stands to 3020'. CBU. RIH to tag cement plug—found green/contaminated cement at 3600', circ down to 3920'. Pump high-vis 11.2 ppg pill. Pull up to 3670'. RU SLB cementers. 9.8 ppg. 7/21/13—Pump 50 bbl 15.3 ppg cement+2 bbl water. Displace w/24 bbl mud. Pull 14 stds+2 jts DP. Reverse out. WOC. RIH w/ 10 stds, wash down to 2746' and tag cement. Set down 10,000#--plug held. Circ and condition. POH. PU 9-5/8"retainer, RIH, and set at 625'. Injection test below retainer. Pump 20 bbl 15.3 ppg cement+ 1.25 bbl water-15 bbl below retainer,then unsting and pump 5 bbl on top of retainer. POH. Test casing and casing head—leaked at 700 psi (head). WOC. 7/22/13—WO RTTS packer. PU DC's (8–4-3/4"and 4–6-1/2"), PU RTTS, and RIH on DP to 14' below GL and set. Test casing below RTTS to 1500 psi for 30 minutes. POH, LD DC's. Push 9-5/8"rubber plug to 203' w/DP. POH, LD DP. PU and RIH with 200' 2-7/8"tubing. ND choke and kill lines. Pump 19 bbl 15.3 ppg cement. POH, LD tubing. Start ND BOP. 7/23/13—Fin ND BOP's. Rough cut 9-5/8"to remove wellhead. Pull MH. Attempt to dig out cellar—gravel sloughing in. AOGCC OK'd WO rig move to make final cut on casings. RD &MO AWS rig. 7/28/13—Made final cuts on casing, cemented to top,weld on marker plate. 8/1/13—Dig out cellar and casing. Remove and replace too-large marker plate with 13- 3/8"plate. Ed Jones (10/11/13) 3 Aurora Gas, LLC Cook Inlet Nicolai Creek Unit Plan NCU #14 NCU 14 Survey: MWD R2 Standard Survey Report 18 July, 2013 Halliburton Company Survey Report Company: Aurora Gas,LLC Local Co-ordinate Reference: Well Plan NCU#14 Project: Cook Inlet TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Well: Plan NCU#14 North Reference: Grid Wellbore: NCU 14 Survey Calculation Method: Minimum Curvature Design: NCU 14 Rig Surveys Database: EDM 2003.16 Single User Db Project Cook Inlet,COOK INLET BASIN Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Site Nicolai Creek Unit Site Position: Northing: 781,892.20m Latitude: 61°0'48.597 N From: Map Easting: 73,611.48m Longitude: 151°27'24.998 W Position Uncertainty: 0.00 ft Slot Radius: 0.000in Grid Convergence: -1.27° Well Plan NCU#14 Well Position +NIS 0.00 ft Northing: 784,795.84 m Latitude: 61°2'22.248 N +E/-W 0.00 ft Easting: 73,423.38 m Longitude: 151°27'41.828 W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 281.80 ft Wellbore NCU 14 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (°) (°) (nT) User Defined 4/30/2013 I User Defined 6/13/2013 Design NCU 14 Rig Surveys Audit Notes: Version: 1.0 Phase: ACTUAL Tie On Depth: 16.20 Vertical Section: Depth From(TVD) +N/S +E/-W Direction (ft) (ft) (ft) (°) 1 16.20 0.00 0.00 326.16 Survey Program Date 7/18/2013 j From To (ft) (ft) Survey(Wellbore) Tool Name Description 744.19 4,830.00 MWD R2(NCU 14) MWD R2 Fixed:v2:standard declination Survey I Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/-W Section Rate Rate Rate (ft) (0) (°) (ft) (ft) (ft) (ft) (°/100ft) (°/100ft) (°/100ft) 16.20 0.00 0.00 16.20 0.00 0.00 0.00 0.00 0.00 0.00 744.19 0.75 355.00 744.17 4.75 -0.42 4.17 0.10 0.10 0.00 762.00 0.64 342.83 761.98 4.96 -0.45 4.37 1.03 -0.62 -68.33 792.00 1.86 313.07 791.97 5.45 -0.86 5.01 4.48 4.07 -99.20 853.00 5.42 307.69 852.84 7.89 -3.86 8.70 5.86 5.84 -8.82 887.00 5.82 315.48 886.67 10.10 -6.34 11.92 2.53 1.18 22.91 918.00 6.31 320.86 917.50 12.54 -8.52 15.16 2.42 1.58 17.35 950.00 6.48 326.23 949.30 15.41 -10.63 18.72 1.94 0.53 16.78 981.00 6.59 328.94 980.10 18.38 -12.52 22.24 1.06 0.35 8.74 1,013.00 6.92 330.94 1,011.88 21.64 -14.41 26.00 1.27 1.03 6.25 1,044.00 8.15 327.05 1,042.61 25.12 -16.51 30.06 4.29 3.97 -12.55 1,076.00 9.55 324.77 1,074.23 29.19 -19.28 34.98 4.51 _ _4.38 _ -7.13 7/18/2013 8:24.18AM Page 2 COMPASS 2003.16 Build 71 • Halliburton Company Survey Report Company: Aurora Gas,LLC Local Co-ordinate Reference: Well Plan NCU#14 Project: Cook Inlet TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Well: Plan NCU#14 North Reference: Grid Wellbore: NCU 14 Survey Calculation Method: Minimum Curvature Design: NCU 14 Rig Surveys Database: EDM 2003.16 Single User Db Survey Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/-W Section Rate Rate Rate (ft) (°) (°) (ft) (ft) (ft) (ft) (°/100ft) (°/100ft) 0100ft) 1,107.00 10.52 323.87 1,104.75 33.58 -22.43 40.38 3.17 3.13 -2.90 1,139.00 11.83 325.07 1,136.15 38.63 -26.03 46.58 4.16 4.09 3.75 1,170.00 12.96 325.11 1,166.42 44.08 -29.84 53.23 3.65 3.65 0.13 1,199.00 13.69 324.14 1,194.64 49.53 -33.71 59.91 2.63 2.52 -3.34 1,231.00 13.93 325.28 1,225.72 55.77 -38.12 67.55 1.13 0.75 3.56 1 1,262.00 14.17 327.52 1,255.79 62.03 -42.28 75.07 1.92 0.77 7.23 1,293.00 14.82 326.15 1,285.80 68.53 -46.53 82.83 2.37 2.10 -4.42 1,325.00 16.03 325.83 1,316.65 75.58 -51.29 91.34 3.79 3.78 -1.00 1,356.00 17.36 324.45 1,346.34 82.89 -56.38 100.24 4.48 4.29 -4.45 1,388.00 18.95 324.83 1,376.75 91.02 -62.15 110.21 4.98 4.97 1.19 1,419.00 20.31 324.79 1,405.95 99.53 -68.15 120.62 4.39 4.39 -0.13 1,451.00 21.98 325.94 1,435.79 109.03 -74.71 132.16 5.38 5.22 3.59 1,482.00 23.67 328.33 1,464.36 119.13 -81.23 144.18 6.22 5.45 7.71 1,513.00 25.27 328.35 1,492.58 130.06 -87.97 157.01 5.16 5.16 0.06 1,545.00 27.08 328.47 1,521.30 142.09 -95.36 171.12 5.66 5.66 0.38 1,576.00 28.36 329.03 1,548.74 154.41 -102.84 185.52 4.21 4.13 1.81 1,603.00 29.11 330.63 1,572.41 165.64 -109.36 198.48 3.98 2.78 5.93 1,640.00 29.18 330.89 1,604.73 181.36 -118.16 216.44 0.39 0.19 0.70 1,672.00 28.99 330.22 1,632.69 194.91 -125.81 231.95 1.18 -0.59 -2.09 1,704.00 29.61 329.40 1,660.60 208.44 -133.68 247.58 2.31 1.94 -2.56 1,735.00 29.50 328.18 1,687.57 221.52 -141.61 262.85 1.97 -0.35 -3.94 1,797.00 29.15 328.21 1,741.62 247.32 -157.61 293.20 0.57 -0.56 0.05 1,829.00 29.05 328.42 1,769.58 260.57 -165.78 308.75 0.45 -0.31 0.66 1,861.00 29.44 326.77 1,797.50 273.76 -174.16 324.37 2.80 1.22 -5.16 1,892.00 29.37 326.55 1,824.51 286.48 -182.53 339.59 0.42 -0.23 -0.71 1,923.00 28.98 326.04 1,851.58 299.05 -190.91 354.71 1.49 -1.26 -1.65 1,986.00 29.68 325.84 1,906.50 324.62 -208.20 385.56 1.12 1.11 -0.32 2,049.00 31.06 326.16 1,960.85 351.02 -226.01 417.42 2.21 2.19 0.51 2,073.00 31.23 326.65 1,981.40 361.36 -232.87 429.83 1.27 0.71 2.04 2,106.00 30.80 326.37 2,009.68 375.54 -242.26 446.83 1.37 -1.30 -0.85 2,140.00 30.69 326.77 2,038.90 390.05 -251.83 464.21 0.68 -0.32 1.18 2,171.00 30.45 326.73 2,065.59 403.23 -260.48 479.98 0.78 -0.77 -0.13 2,203.00 30.49 326.69 2,093.17 416.80 -269.38 496.20 0.14 0.13 -0.13 2,234.00 30.29 326.13 2,119.91 429.86 -278.06 511.89 1.12 -0.65 -1.81 2,265.00 30.03 326.72 2,146.71 442.84 -286.67 527.46 1.27 -0.84 1.90 2,297.00 29.87 327.27 2,174.44 456.24 -295.38 543.43 0.99 -0.50 1.72 2,328.00 29.67 326.63 2,201.35 469.14 -303.77 558.82 1.21 -0.65 -2.06 2,359.00 29.32 326.69 2,228.33 481.89 -312.16 574.09 1.13 -1.13 0.19 2,391.00 29.01 326.84 2,256.28 494.93 -320.71 589.68 1.00 -0.97 0.47 2,422.00 29.23 326.01 2,283.36 507.50 -329.05 604.77 1.48 0.71 -2.68 2,454.00 29.31 325.38 2,311.27 520.42 -337.87 620.41 0.99 0.25 -1.97 2,485.00 28.98 325.12 2,338.35 532.83 -346.47 635.51 1.14 -1.06 -0.84 2,516.00 29.28 323.46 2,365.43 545.08 -355,28 650.59 2.78 0.97 -5.35 2,551.00 29.44 322.29 2,395.93 558.76 -365.64 667.72 1.70 0.46 -3.34 2,583.00 29.40 323.03 2,423.80 571.26 -375.17 683.41 1.14 -0.13 2.31 2,614.00 29.04 322.49 2,450.86 583.31 -384.33 698.51 1.44 -1.16 -1.74 2,646.00 29.10 322.83 2,478.83 595.67 -393.76 714.03 0.55 0.19 1.06 2,677.00 28.94 321.93 2,505.94 607.58 -402.94 729.04 1.50 -0.52 -2.90 2,708.00 29.74 322.41 2,532.96 619.58 -412.25 744.19 2.69 2.58 1.55 2,740.00 29.80 322.78 2,560.74 632.20 -421.90 760.05 0.60 0.19 1.16 2,771.00 30.62 322.34 2,587.53 644.58 -431.39 775.62 2.74 2.65 -1.42 2,802.00 30.80 323.18 2,614.18 657.19 -440.97 791.42 1.50 0.58 2.71 2,830.00 30.58 322.46 2,638.26 668.57 -449.60 805.69 1.53 -0.79 -2.57 2,862.00 30.14 322.82 2,665.87 681.43 -459.42 821.83 1.49 -1.38 1.13 7/18/2013 8:24:18AM Page 3 COMPASS 2003.16 Build 71 Halliburton Company Survey Report Company: Aurora Gas,LLC Local Co-ordinate Reference: Well Plan NCU#14 Project: Cook Inlet TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Well: Plan NCU#14 North Reference: Grid Wellbore: NCU 14 Survey Calculation Method: Minimum Curvature Design: NCU 14 Rig Surveys Database: EDM 2003.16 Single User Db Survey I Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +E/-W Section Rate Rate Rate (ft) (0) (°) (ft) (ft) (ft) (ft) (°/100ft) (°/100ft) (°/100ft) 2,893.00 30.02 323.73 2,692.69 693.88 -468.71 837.35 1.52 -0.39 2.94 2,924.00 30.12 324.36 2,719.52 706.45 -477.83 852.87 1.07 0.32 2.03 2,956.00 29.82 324.50 2,747.24 719.46 -487.13 868.85 0.96 -0.94 0.44 2,987.00 29.59 324.82 2,774.17 731.99 -496.01 884.20 0.90 -0.74 1.03 3,019.00 29.40 325.47 2,802.02 744.92 -505.02 899.96 1.16 -0.59 2.03 3,050.00 29.18 325.39 2,829.06 757.40 -513.62 915.12 0.72 -0.71 -0.26 3,081.00 29.01 325.72 2,856.15 769.84 -522.15 930.19 0.75 -0.55 1.06 3,115.00 28.47 325.49 2,885.96 783.33 -531.38 946.54 1.62 -1.59 -0.68 3,148.00 27.98 325.25 2,915.04 796.17 -540.25 962.15 1.52 -1.48 -0.73 3,180.00 27.73 324.39 2,943.33 808.39 -548.87 977.09 1.48 -0.78 -2.69 3,211.00 27.52 325.02 2,970.79 820.12 -557.17 991.46 1.16 -0.68 2.03 3,242.00 27.34 325.78 2,998.31 831.87 -565.28 1,005.74 1.27 -0.58 2.45 3,273.00 26.49 327.40 3,025.95 843.59 -573.01 1,019.77 3.62 -2.74 5.23 3,302.00 25.19 328.34 3,052.05 854.29 -579.73 1,032.41 4.70 -4.48 3.24 3,332.00 23.68 328.66 3,079.36 864.87 -586.22 1,044.81 5.05 -5.03 1.07 3,363.00 22.30 327.86 3,107.90 875.17 -592.59 1,056.91 4.56 -4.45 -2.58 3,395.00 20.74 327.03 3,137.67 885.06 -598.90 1,068.64 4.97 -4.88 -2.59 3,426.00 19.08 327.42 3,166.81 893.94 -604.62 1,079.20 5.37 -5.35 1.26 3,458.00 18.33 327.30 3,197.12 902.58 -610.15 1,089.46 2.35 -2.34 -0.38 3,494.00 17.26 327.61 3,231.40 911.85 -616.07 1,100.45 2.98 -2.97 0.86 3,525.00 16.30 326.95 3,261.08 919.38 -620.91 1,109.40 3.16 -3.10 -2.13 3,557.00 15.25 324.98 3,291.88 926.59 -625.77 1,118.10 3.68 -3.28 -6.16 3,588.00 14.70 323.50 3,321.82 933.09 -630.45 1,126.11 2.16 -1.77 -4.77 3,620.00 13.56 323.33 3,352.85 939.37 -635.11 1,133.91 3.56 -3.56 -0.53 3,649.00 12.33 324.02 3,381.12 944.60 -638.95 1,140.40 4.27 -4.24 2.38 3,681.00 11.11 325.89 3,412.45 949.92 -642.69 1,146.90 3.99 -3.81 5.84 3,713.00 9.94 325.64 3,443.91 954.75 -645.98 1,152.74 3.66 -3.66 -0.78 3,744.00 8.82 323.85 3,474.50 958.88 -648.89 1,157.79 3.73 -3.61 -5.77 3,776.00 8.31 322.42 3,506.14 962.69 -651.75 1,162.55 1.73 -1.59 -4.47 3,807.00 8.13 322.62 3,536.82 966.21 -654.45 1,166.97 0.59 -0.58 0.65 3,839.00 7.60 326.70 3,568.52 969.77 -656.98 1,171.35 2.40 -1.66 12.75 3,870.00 7.52 331.22 3,599.25 973.27 -659.08 1,175.42 1.94 -0.26 14.58 3,901.00 7.38 331.92 3,629.99 976.80 -661.00 1,179.42 0.54 -0.45 2.26 3,934.00 7.19 331.45 3,662.72 980.48 -662.98 1,183.58 0.60 -0.58 -1.42 3,965.00 6.96 330.25 3,693.49 983.82 -664.84 1,187.39 0.88 -0.74 -3.87 3,997.00 6.51 329.27 3,725.26 987.06 -666.73 1,191.14 1.45 -1.41 -3.06 4,028.00 6.37 328.34 3,756.07 990.04 -668.53 1,194.61 0.56 -0.45 -3.00 4,059.00 6.47 330.28 3,786.87 993.02 -670.30 1,198.07 0.77 0.32 6.26 4,090.00 6.31 330.23 3,817.68 996.01 -672.01 1,201.51 0.52 -0.52 -0.16 4,122.00 6.30 329.86 3,849.49 999.06 -673.77 1,205.02 0.13 -0.03 -1.16 4,153.00 6.17 330.37 3,880.31 1,001.98 -675.44 1,208.38 0.46 -0.42 1.65 4,185.00 6.14 328.23 3,912.12 1,004.93 -677.19 1,211.80 0.72 -0.09 -6.69 4,216.00 6.18 328.80 3,942.94 1,007.76 -678.93 1,215.12 0.24 0.13 1.84 4,246.00 6.12 329.33 3,972.77 1,010.52 -680.58 1,218.33 0.28 -0.20 1.77 4,279.00 6.10 329.19 4,005.58 1,013.54 -682.38 1,221.84 0.08 -0.06 -0.42 4,311.00 5.88 330.01 4,037.41 1,016.42 -684.07 1,225.17 0.74 -0.69 2.56 4,343.00 5.50 327.52 4,069.25 1,019.13 -685.71 1,228.34 1.42 -1.19 -7.78 4,372.00 5.47 329.02 4,098.12 1,021.49 -687.17 1,231.11 0.51 -0.10 5.17 4,404.00 5.31 328.46 4,129.97 1,024.06 -688.73 1,234.12 0.53 -0.50 -1.75 4,434.00 5.25 329.10 4,159.85 1,026.42 -690.16 1,236.87 0.28 -0.20 2.13 4,464.00 5.14 326.75 4,189.72 1,028.72 -691.60 1,239.59 0.80 -0.37 -7.83 4,496.00 5.12 325.99 4,221.60 1,031.10 -693.19 1,242.45 0.22 -0.06 -2.38 4,530.00 4.92 325.33 4,255.47 1,033.56 -694.86 1,245.42 0.61 -0.59 -1.94 4,561.00 5.00 324.48 4,286.35 1,035.75 -696.41 1,248.10 0.35 0.26 -2.74 7118/2013 8:24:18AM Page 4 COMPASS 2003.16 Build 71 Halliburton Company Survey Report Company: Aurora Gas,LLC Local Co-ordinate Reference: Well Plan NCU#14 Project: Cook Inlet TVD Reference: NCU 14 plan©298.00ft(KB+GL) Site: Nicolai Creek Unit MD Reference: NCU 14 plan©298.00ft(KB+GL) Well: Plan NCU#14 North Reference: Grid Wellbore: NCU 14 Survey Calculation Method: Minimum Curvature Design: NCU 14 Rig Surveys Database: EDM 2003.16 Single User Db Survey Measured Vertical Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N/-S +EI-W Section Rate Rate Rate (ft) (°) (°) (ft) (ft) (ft) (ft) (°/100ft) (°/100ft) (°/100ft) 4,593.00 4.95 324.33 4,318.23 1,038.01 -698.02 1,250.88 0.16 -0.16 -0.47 4,624.00 4.84 324.32 4,349.12 1,040.16 -699.56 1,253.52 0.35 -0.35 -0.03 4,656.00 4.85 323.74 4,381.00 1,042.35 -701.15 1,256.22 0.16 0.03 -1.81 4,687.00 4.67 326.52 4,411.89 1,044.45 -702.62 1,258.79 0.94 -0.58 8.97 4,718.00 4.70 326.96 4,442.79 1,046.57 -704.01 1,261.33 0.15 0.10 1.42 4,730.00 4.67 326.52 4,454.75 1,047.39 -704.55 1,262.31 0.39 -0.25 -3.67 4,750.00 4.71 325.42 4,474.68 1,048.75 -705.46 1,263.94 0.49 0.20 -5.50 4,781.00 4.48 325.49 4,505.58 1,050.79 -706.87 1,266.42 0.74 -0.74 0.23 4,788.00 4.58 327.28 4,512.56 1,051.25 -707.18 1,266.98 2.47 1.43 25.57 4,830.00 4.58 327.28 4,554.43 1,054.07 -708.99 1,270.33 0.00 0.00 0.00 Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +NI-S +E/-W Northing Easting -Shape (0) (0) (ft) (ft) (ft) (m) (m) Latitude Longitude NCU 14 TGT BHL rexo 0.00 0.00 4,500.02 1,064.69 -713.90 785,120.35 73,205.79 61°2'32.572 N 151°27'56.803 W -survey misses target center by 15.96ft at 4776.69ft MD(4501.28 TVD,1050.51 N,-706.68 E) -Circle(radius 150.00) Checked By: Approved By: Date: 7/18/2013 8:24:18AM Page 5 COMPASS 2003.16 Build 71 S.. , —•-4 '‘* .. -, •,O --111" '-, t 1, •r„ '. :,'-j ' , N'` Jal*'. '4^.-; 4 •. ' , . ..., _. . . • •co, , ... • 0 NI*: ,.. ;..- 'V * •• 'IN or - .., .. • ._ a,0 111 a ' . .. ....., ',::. FINP 0 • 0 0 • • ,-; '-, • Q C, •- . 003 1111 ilk ,, • 1111° -„, 0 , • :It, ' . , 0 "..• 0 I. • , • ' • / ..• r'1,4 '''' ' •- ,, 41 0 0 - i''''' ‘'it.,;°3°411 •• „., • • ° Q- C' C' '4 •r ' a 4 , A Ait e t ',.• - . , • -, .... I • , -.. .k,;. c .• t., • '...., • , 1 -A 11 t .4\ , I 1°6 Nt ) %. k. • 'L i ' i'. % lik ‘N, k li at ' 4 IP - 44,.. 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' r J ^P , 1/T l''',',1,,,,,, "3 i.{. t + .� /:r , ,y , to • J 5. � - ..n �Jrrn 'i ' : 4, , ,:4”' + -sEF .VY '� • 1.:.• ..-'44N...4•41:1k1f.li.•7 :',',z1,,,,. ...1;.44,,, -ft• ..311"'''''-,..,,tr"' , . . t, xar "f s y n i, t -. st- _ - 1 r RECEIVED Aurora Gas, LLC 2 www.aurorapower.com QCT 2 2013 DATA LOGGED Q M K BENDER IA 2-- October 21,2013 \o-3 Z'S 01 Makana Bender 23 5 o Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Suite 100 Anchorage,Alaska 99501 RE: Well Log.Submittal, Niel Creek No. 14 Aurora Gas, LLC has included in this package the following documents and electronic files for Alaska Oil and Gas Conservation Commission for the Aurora Gas LLC Nicolai Creek#14 Well, API# 50-283-20672-00. Please keep this information contained here-in "CONFIDENTIAL—for 2-years. Well Completion or Recompletion Report and Log(Confidential 2-years) Paper Logs(Confidential 2-years) 1) Halliburton(XRMI)Extended Range Micro Imager Tadpole Mot 2) Halliburton(XRMI)Extended Range Micro-Imager Tadpole and Stick Diagram Plot 3) Hatlfl,ufton Sequential Formation Tester(SFTT-C) 4) Halliburton Borehole Volume Plot 5) Halliburton Wavesor is Semblance Analysis 6) Halliburton Dual Spaced Neutron Spectral Density Array Compensated Resistivity 7) Canrig Nicolai Creek 14 binder Electronic Documentation(Confidential 2-years) 8) Halliburton Digital Log Image Files,LAS format If you have any questions or require additional information,please contact me or Ed Jones at (907)277-1003. Sincerely, AURORA GAS, LLC Georg&Pollock Manager—Production Operations&Engineering enclosures 1400 West Benson Blvd., Suite 410 •Anchorage,AK 99503 •(907) 277-1003 •Fax: (907) 277-1006 6051 North Course Drive, Suite 200 •Houston, TX 77072 •(713) 977-5799 •Fax: (713) 977-1347 Okland, Howard D (DOA) From: Bettis, Patricia K(DOA) Sent: Monday, October 21, 2013 1:02 PM To: Okland, Howard D (DOA) Subject: FW: Emailing: Aurora_Nicolai_Creek_No_14_Dips.las Attachments: Aurora_Nicolai_Creek_No_14_Dips.las; QUAD_MAIN.las; QUAD_REPEAT.las Aurora_Nicolai_CreQUAD_MAIN.Ias(2 QUAD_REPEAT.Ias ek_No_14_Dip... MB) (282 KB) 1( ?NI)) Original Message From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Monday, October 21, 2013 12:54 PM To: Dowdy, Alicia G (DNR) ; Bettis, Patricia K (DOA) Cc: Franger, James M (DNR) Subject: Emailing: Aurora_Nicolai_Creek_No_14_Dips.las Here are .las files for the XRMI dipmeter and Quadcombo logs run in Nicolai Creek #14-- they were omitted from our submittal last week. I believe that we should also have a Wave Sonic las, which I will forward as soon as I locate. 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) 1 AURORA GAS, LLC NICOLAI CREEK NO. 14 (AOGCC PERMIT No. 212-193) (API No. 50-283-20172-00) DRILLING AND PLUG AND ABANDONMENT OPERATIONS SUMMARY 5/7/13—Construction authorization from CIRI received. Pad construction started shortly thereafter by Tyonek Contractors. 6/12/13—Move in Kraxburger and related equipment to drive conductor. Pad construction continuing 6/13/13—Kraxburger drove 13-3/8" 68# K-55 conductor casing to 94' from GL(not final grade—ended up being 106' KB). RD and release Kraxburger. Pad construction continuing 6/19/13—Dig mousehole and cellar. Pad construction continuing. 6/20/13—Set mousehole and cellar ring. Pad construction continuing. 6/26/13--Install starting head and diverter tee on conductor. Pad construction continuing. 6/27/13—Final grade on pad. Lay felt and liner for rig containment. MI and RU rig and support equipment. 6/28/13—Finished laying liner and mats for rig. Place mud boat and carrier. Continue MI and RU support equipment. 6/29/13—Continue MI and RU. 6/30/13—Raise derrick. Continue MI and RU. 7/1/13--Continue MI and RU. 7/2/13—Install flow nipple, containment berm, PVT system. Finish installing diverter system. Dig cuttings temporary storage pit. 7/3/13--Continue rig up. Mix 200 bbl 10.0 ppg spud mud. Line cuttings pit. AOGCC diverter test. PU BHA. Spud at 2130. Tag at 98'. Drill to 113'. 1 7/4/13-Drill from 113 to 516'. Short trip. 10 ppg. 7/5/13-Surveyed-1 deg. Drill 516-710'. Wiper trip to conductor. Survey-1 deg. Circ and condition for surface casing. 10 ppg. 7/6/13-POOH, laying down 8"BHA. RU Weatherford casing crew. Ran 700' (18 jts) 9-5/8"36#J-55 LTC surface casing. Circ and condition. Pump 50 bbl "Mud Push" spacer. Mix and pump 97 bbl 12.0 ppg light Class G cement slurry w/defoamer, dispersant, gas block, &accelerator at 1.71 cf/sk. Displace with 5 bbl water+40 bbl mud with good cement returns-40 bbl to surface. Did not bump plug. Floats held. RD SLB cementers. WOC. RD diverter lines. 7/7/13-RD divertor stack and starting head. Cut of 9-5/8"casing. Weld on casing head-test to 500 psi. NU 11"X 3000 psi BOP stack. 7/8/13-RU choke and lines. Test BOP's-witness waived. RU trip tank and gas buster. PU directional BHA and RIH,picking up DCs' Tag cement at 611'. Check functionality of Sperry directional and MWD tools and Canrig mud logging equipment. Drill cement to 640'. Test casing to 1500 psi for 30 minutes-good. Thin mud. 10.0 ppg• 7/9/13-Swap from spud mud to 10.4 ppg Baroid EZ mud. Drill cement to 689', drill shoe track and 20' new hole to 736'. Perform FIT to 16.0 ppg EMW (220 psi w/ 10.4 ppg mud). Drill and slide to 959'. Survey. Drill and slide to 1146'. 10.4 ppg. 7/10/13-Drill and slide to 1209'. Wiper trip to shoe(700'). Drilled to 1650'. Short trip to 1200'. Drill and slide to 1899'. 10.2 ppg. 7/11/13-Drilled to 2150'. Short trip to 1650'. Drilled to 2653'. Short trip to 2150'. Drilled to 2684'. 10.0 ppg. 7/12/13-Drilled to 3157'. Short to 2653'. Survey. Drilled to 3187'. 9.95 ppg. 7/13/13-Drilled to 3525'. Unable to slide. Pump high-vis pill and POH with tight spots. Bit damaged. 9.95 ppg. 7/14/13-Finish LD BHA. Test BOP's-witness waived. Change pump liners from 6" to 5-1/2". PU BHA. RIH,testing motor and electronics at 400'. RIH. 9.8 ppg. 7/15/13-Fin RIH. Survey. Drill and slide to 4035'. Survey. Short trip to 3533'-hole tight 3533-3752'. 9.8 ppg. 7/16/13-Fin RIH to 4035'. Drilled to 4474'. Wiper trip to 3980'. Drilled to 4725'. 9.8 ppg• 2 7/17/13—Drilled to 4730'. Pump high-vis sweep. POH to 9-5/8" shoe. RIH to 4730 with tight spots. Drill to TD of 4830'. Start POH. 9.8 ppg. 7/18/13—POH to 3030' for wiper trip. RIH to TD of 4830'. Circ and condition. POH. RU HES loggers. Logging run#1—Platform Express(SP-GR-AI-D-N). Start logging run #2—XRMI—dip meter mode. 9.8 ppg. 7/19/13—Fin XRMI run. Logging run#3—SFT express pressures. RD HES. RIH w/ mule shoe on DP. W.O.O. POH, LD 35 jts DP to 3706'. RU SLB cementers. Circ and condition hole and mud. Mix Mud Push sweep. Pull up to 3670'. 9.8 ppg. 7/20/13—Pump 13 bbl 11.5 ppg Mud Push+45 bbl 15.3 ppg cement+5 bbl 11.5 ppg Mud Sweep, displace with 23 bbl mud(balanced plug). RD SLB. Pull and stand back 14 stds. Rev out. POH, laying down 20 jts DP. WOC 8 hrs. RIH w/ 14 stands to 3020'. CBU. RIH to tag cement plug—found green/contaminated cement at 3600',circ down to 3920'. Pump high-vis 11.2 ppg pill. Pull up to 3670'. RU SLB cementers. 9.8 ppg. 7/21/13—Pump 50 bbl 15.3 ppg cement+2 bbl water. Displace w/24 bbl mud. Pull 14 stds+2 jts DP. Reverse out. WOC. RIH w/ 10 stds,wash down to 2746' and tag cement. Set down 10,000#--plug held. Circ and condition. POH. PU 9-5/8"retainer, RIH, and set at 625'. Injection test below retainer. Pump 20 bbl 15.3 ppg cement+ 1.25 bbl water-15 bbl below retainer,then unsting and pump 5 bbl on top of retainer. POH. Test casing and casing head—leaked at 700 psi (head). WOC. 7/22/13—WO RTTS packer. PU DC's(8–4-3/4"and 4–6-1/2"),PU RTTS, and RIH on DP to 14' below GL and set. Test casing below RTTS to 1500 psi for 30 minutes. POH, LD DC's. Push 9-5/8"rubber plug to 203' w/DP. POH,LD DP. PU and RIH with 200' 2-7/8"tubing. ND choke and kill lines. Pump 19 bbl 15.3 ppg cement. POH, LD tubing. Start ND BOP. 7/23/13—Fin ND BOP's. Rough cut 9-5/8"to remove wellhead. Pull MH. Attempt to dig out cellar—gravel sloughing in. AOGCC OK'd WO rig move to make final cut on casings. RD &MO AWS rig. 7/28/13—Made final cuts on casing, cemented to top,weld on marker plate. 8/1/13—Dig out cellar and casing. Remove and replace too-large marker plate with 13- 3/8"plate. Ed Jones (10/11/13) 3 Ai;cola: Craw_ 1.4.4t,;4- (4- PTO z(z k.`13h Regg, James B (DOA) From: Company Man [wellsitesuper@aurorapower.com] Sent: Monday, August 05, 2013 7:44 AM g f� �3 To: Ed Jones .G� / Cc: Regg, James B (DOA) Subject: NU 14 PA Attachments: 160.JPG; 162.JPG; 163.JPG Here is the new name plate installed on Well NU14 Shane McGeehan 801-556-0946 From:Shane Mcgeehan [mailto:shane.mcgeehan@yahoo.com] Sent: Monday, August 5, 2013 7:14 AM To: wellsitesuper@aurorapower.com Subject: NU 14 1 a • v Surface P&A - Nicolai Creek Unit#14 IPTD 2121930] Photos Courtesy of Aurora Gas LLC 8/5/2013 Replaced the marker plate on 8/2/13; original plate did not meet 20 AAC 25.120(3) Rf q a A y{ew'' fA!'^ ' ,; +:J ii!�f i v yr m'a 't+a �I. f+ ' �.i� In i � rte: 4-30:11,-, ;4.p 'a4 •, 1/ r Z-42. 1.930 Regg, James B (DOA) From: Regg, James B (DOA) Sent: Friday, August 02, 2013 3:06 PM 2 q vl Zi 13 To: 'jbwest@q.com' Cc: Ed Jones; Dave Boelens Subject: RE: NCU 14 P &A OK. No further action necessary. Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 Original Message From: -jbwest(lq.com [mailto:jbwest0q.com] Sent: Wednesday, July 31, 2013 8:21 AM To: Regg, James B (DOA) Cc: Ed Jones; Dave Boelens Subject: Re: NCU 14 P & A I went on days off last Friday, but talking to the guys in the field it sounds like the well is buried. Thanks Jon West Original Message From: "James B Regg (DOA)" <jim.regglalaska.gov> To: jbwest0q.com, "Ed Jones" <jejonesPaurorapower.com>, "Dave Boelens" <dboelens0aurorapower.com> Sent: Tuesday, July 30, 2013 2:24:36 PM Subject: RE: NCU 14 P & A Photo of welder installing plate appears to show a marker plate that is larger than the outermost casing. 20 AAC 25.120(3) requires installation of a well abandonment marker plate that "does not extend beyond the outermost casing string". Has NCU-14 been buried yet? Jim Regg AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 From: ibwest0q.com [mailto:jbwest@q.com] Sent: Monday, July 29, 2013 9:19 AM To: Regg, James B (DOA) Cc: Ed Jones; Dave Boelens Subject: NCU 14 P & A 1 w. N, P a4'ti � c r s e r i CZ ✓ • U 74 a+ ♦. Y NA` a) a) b.0 E `/ U ti) _^ = 7 cct /10 U 4-4 -d a. t L U N , VI {rFnw w 4 4 _ a) r'7 'e. N+ ft _ V, z ?? a ;. a r, w 0 L os , Y a. V co � �N-I V O 4M ~t '. M D Q N x C.) V] 0.i a, l� y, r. z 4 Y .• _ 4. � ? ,: 4 S ti %. W ,# . 0'1 , ** A } } l . k a) ro Q 0 oh bA O O 2 0 •0 co c d • c •i .• •w m • o. a. 1. 1. a) an , +a'f ' sx..i , ••• ,r � �.-�y ,... y „,„0„,•,,,,,. ,. .1--., • U a) ”` Z 3 z o _. ) ;, ;t , f # t..• r -'t u. r } `* _1 (j.,g 16 0 o`• _ • a) _a • ��. a �J� !„ .— r a N U • v • • U z • • v OF/Tye� THE STATE �� w ��I77: Alaska Oil and Gas °ALASKA Conservation Commission _ GOVERNOR SEAN PARNELL 333 West Seventh Avenue Anchorage, Alaska 99501-3572 ALAS Main. 907.279 1433 Fax. 907.276.7542 J. Edward Jones President 3 Aurora Gas, LLC a! 1400 West Benson, Suite 410 Anchorage, AK 99503 Re: Nicolai Creek Field, North Undefined Gas Pool,Nicolai Creek Unit#14 Sundry Number: 313-396 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 Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, /4° ‘74. Cathy P. oerster Chair Si" DATED this / day of August, 2013. Encl. .. qiiiki_1.7 RECEIVED STATE OF ALASKA I, �I� v 2 a.2013 ALASKA OIL AND GAS CONSERVATION COMMISSION -criJ 81013 APPLICATION FOR SUNDRY APPROVALS Arr' CC 20 AAC 25.280 1.Type of Request: Abandon❑., • Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Approved Program ❑ Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension❑ Operations Shutdown❑ Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: AURORA GAS,LLC•,. Exploratory ❑ Development E. 212 193- 3. 93-3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 1400 WEST BENSON,#410,ANCHORAGE,AK 99503 50-283-20172-00-001 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 #14. 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL-391472(surf)&ADL-391265(Ohl)• NICOLAI CREEK UNIT North Undef fined Gas' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): - 4830 „4554 4830 4554 Casing Length Size MD ND Burst Collapse Structural Conductor 94' 13-3/8" 94'GL 94'GL 3450 1950 Surface 700' 9-5/8" 700'KB 700'KB 3520 2020 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(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 Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory [I] Stratigraphic❑ Development E Service ❑ 14.Estimated Date for 7/19/2013 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: I WINJ ❑ GINJ ❑ WAG ❑ Abandoned E. Commission Representative: C 5 1,,,, h_ 7/19/2013 GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing a true and correct to the best of my knowledge. Contact Ed Jones I Email LeJonesaurorapower coni Printed Name J. Edward Jones Title President Signature L-Z.,‘,/7.-e-,/- Phone 713-899-8103/907-277-1003 Date 7/20/2013 tOlCOMMISSION USE ONLY Conditio approval: Notify Commin so that a representative may witneSundry Number: Plug Integrity 132 BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance Other: — rp 4ot, - U-si c j_ .-moo Lv� r 7 - RBDMS AUG - 2101 Spacing Exception Required? Yes ❑ NoDI Subsequent Form Required: I 0_ '107 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: it '/-"/3 Form 10-403(Rev 10/2012) ApproOe aIiftGl fr�1tonths 64tf th7d5lte 0 approval. ��Attachments n Duplicate ,i\\��v AURORA GAS,LLC. NICOLAI CREEK#14 PTD #212-193 API#50-283-20172-00-00 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 9.8 ppg mud. RIH w/ OEDP to 3670'MD and place a balanced cement plug across the interval 3000' to 3650' (250 cf/44.6 bbl, 200 sx Class G cement at 15.3 ppg) isolate the potential gas-bearing interval indicated on logs at 3538-56' MD and 3360-80'MD'. 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. 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: Plate to be 1/4" steel cut in a circle measuring 18" in diameter with the following information bead welded to one side: Aurora Gas, LLC 19/ { Nicolai Creek Unit#14 PTI) #212-193 API # 50-283-20172-00 Place the plate, wording side up, over the cut-ff casing subs and weld to the outer casing string. 1 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. 2 Surface Plug: 19 bbl(86 sx) P r r y. r, Class G Cement at 15.3 ppg, Aurora Gas, LLC '""'` arc rt 'Ytop � 3 est bottom at 203 at ,+• a,!• a- t arR'� . .' .°1-1-` 1. . '•n cut-off,5' below GL NICOLAI CREEK �'` *4. ' '' •4• A.•• 13-3/8" Structural UNIT #14 FINAL % f w- " Conductor driven to 94'GL PLUGGED and • •- -•°' ABANDONED , 9-5/8" 36#Surface Casing set at July 23,2013 f %* � 7I? ; `1 1 700'and Cemented w/97 bbl(318 . : ,1r moi+ .d.�,J .,.�.'� a.�:�, sx) 12.0 ppg LW Class G 1* Accelerated Cement Drill 12-1/4"Hole to 710' " + - : ►1�y9e;9 . f 1"'�M as IN Y f P " Ily '�� ' s., �; . „' ;ry � 9-5/8"Casing Plug:Retainer set at r41,Formation Tops 3 +' '4 ' „i'; "+";: 625'and cemented with 20 bbl (90 Beluga- 700'MD/TVD j``� °�'`'s"'a"- "" ' sx)Class G Cement at 15.3 ppg, 15 Carya 2-1-1889'MD bbl below retainer and 5 bbl above. Carya 2-2--2345' Carya 2-3 2845'MD Est bottom of plug is 810' and est. Carya 2-4--3110'MD top of plug is 560'. Carya 2-4.1-3302'MD Carya 2-4.2--3462'MD Carya 2-5-3745'MD Carya 2-6-3982'MD Carya 2-7--4480'MD Carya 2-1 Wellbore filled with 9.8 ppg Mud Carya 2-3 ).4 Second Plug: 50 bbl(226 sx) �► '" ).+ ��' 1` *� • " 15.3 ppg G cement w/top at Carya 2-4.1 w•R, - , •• .t. =- • '.r ,; tea 2746' (tagged)and est. bottom . � ,r at 3580' ryM * � j` * YS MAS ♦ �j. , ,r � 1 •• - as Carya 2-4.2 �' ' ! -r" Carya 2-5 First Plug: 45 bbl(204 sx) 15.3 %,`4t::At °.7W ppg G cement. Est top at 3950' Carya 2-6 tt. '!; and est bottom at 4600' Carya 2-7 + 4,;r Drilled 7-7/8"Hole to 4830' 47!7 , b, � / ° 13 MD/4554"TVD 'a4E_ f �'3 Bettis, Patricia K (DOA) From: Ed Jones [jejones@aurorapower.com] Sent: Tuesday, July 30, 2013 12:43 PM To: Bettis, Patricia K(DOA) Subject: RE: Nicolai Creek Unit#14 Attachments: NC 14 P&A WellBore Diagram.docx Patricia, Attached is the final wellbore diagram for Nicolai Creek Unit#14, which was plugged and abandoned in late July. Please let me know if you need additional information. 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: Bettis, Patricia K (DOA) [mailto:patricia.bettis@alaska.gov] Sent: Monday, July 29, 2013 5:19 PM To: jejones@aurorapower.com Subject: Nicolai Creek Unit #14 Good afternoon Ed, Please submit a current wellbore schematic for the Nicolai Creek Unit#14 well. This may be emailed to me. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 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 Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 Bettis, Patricia K (DOA) From: Bettis, Patricia K(DOA) Sent: Monday, July 29, 2013 2:19 PM To: 'jejones@aurorapower.com' Subject: Nicolai Creek Unit#14 Good afternoon Ed, Please submit a current wellbore schematic for the Nicolai Creek Unit#14 well. This may be emailed to me. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 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 Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 • Schwartz, Guy L (DOA) From: Ed Jones <jejones@aurorapower.com> Sent: Monday,July 22, 2013 1:03 PM To: Schwartz,Guy L(DOA) Cc: 'Aurora Company Man'; Davies, Stephen F (DOA); 'George Pollock' Subject: RE: NC 14 cement plug ?T7 2/?_-/73 Guy, Thanks. To correct something that I wrote this AM—we are actually setting the RTTS just a partial joint below the head, as we have enough weight to set it with 6" drill collars. Thus, we will also get a test of all of the casing below the surface plug before that plug is set. We will certainly follow-up with the wellhead and give you a full report when GE Vetco has a chance to look at it also. 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) [ ] Sent: Monday,July 22, 2013 1:49 PM To: Ed Jones Cc: Aurora Company Man; Davies, Stephen F(DOA); George Pollock Subject: Re: NC 14 cement plug Ed, Using RTTS is acceptable for pressure test of the retainer and plug .. Make sure we get a full report on the wellhead leak after you have more info. After cutoff assume you will ship to vendor for evaluation and failure report. Guy Schwartz Sent from my iPhone On Jul 22,2013,at 8:59 AM, "Ed Jones" < >wrote: Guy, `,�1r,1k , . I called this morning to update you on the abandonment of Nicolai Creek #14 and left a message, but an email might be helpful. Following my note below regarding the open-hole plug (sent yesterday), we set a retainer at 650' and pumped 20 bbl (90 sx) of 15.3 ppg G cement, squeezing 15 bbl below the retainer at 300 psi, and leaving 5 bbl on top of the retainer. We are now preparing to pressure test the plug. However, we are going to deviate from the Procedure: rather than close the blind rams and pressure the casing and plug to 1500 psi, we are running an RTTS packer to about 600', setting it, and testing the plug below it to 1500 psi—I believe that this meets the requirements. The reason for doing this is because when we closed the blinds and pressured up, we found a leak at 700 psi 1 below the casing head. Apparently the movement of the BOP stack sometime during operations subsequent to the 1500-psi test on 7/8/13 had cracked the weld and compromised the 0 ring—this is an issue that we are looking into and are working with GE (Vetco) to remedy (prevent) on our next well. Please let me know if this method of testing the plug is not acceptable. Attached is the signed Sundry, an unsigned copy of which and Procedure were provided to your electronically on 7/20/13. Paper copies of the Sundry Notice and Procedure will be mailed. I did just get your email approving the open-hole plug. Please let me know if you have questions or concerns. 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 [ ] Sent: Sunday, July 21, 2013 3:50 PM To: 'Jim Regg'; 'Schwartz, Guy L(DOA)' Cc: 'Aurora Company Man' Subject: RE: NC 14 cement plug We did actually increase the cement volume last night to 50 bbl of 15.3 ppg cement. From the Halliburton Borehole Volume Log, based on the caliper run with the Platform Express log, with the top at 2746', the bottom of the plug should be at 3564', not quite to the 3600' planned. Please let us know ASAP if this is not acceptable, considering that we had pumped another 45 bbl of cement previously, which appears to be below 3920'. As Jon mentioned, we are preparing to set the cement retainer in the 9-5/8" casing and squeezing 15 bbl of 15.3 ppg G cement below it with 5 bbl on top of it, then pressure testing to 1500 psi. 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: Aurora Company Man [ ] Sent: Sunday, July 21, 2013 3:12 PM To: Ed Jones; Jim Regg Cc: Subject: NC 14 cement plug Saturday morning we spotted a 45 bbl.Cement plug at 3706' and pulled up to 2100"to WOC.We ran in the hole yesterday afternoon but did not encounter any firm cement. Did encounter green contaminated at 3600'. RIH to 3920'and spotted Hi Vis pill than pulled up to 3670'and another 45bbl. Cement plug. 2 We just ran in the hole and tagged firm cement at 2746',we set 10K down on it twice to confirm it was hard cement. Plans are now to POH laying down drill pipe, standing back 700'to set the plug at the shoe. We do have a 9 5/8 retainer on location with running tools and a Halliburton hand for setting it. Jon West Aurora Gas, LLC <NC 14 PA Sundry Notice.pdf> 3 t . '. Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent Monday,July 22, 2013 10:49 AM To: Ed Jones Cc: Aurora Company Man; Davies, Stephen F(DOA);George Pollock Subject: Re: NC 14 cement plug 1Z--iir Ed, Using RTTS is acceptable for pressure test of the retainer and plug.. Make sure we get a full report on the wellhead leak after you have more info. After cutoff assume you will ship to vendor for evaluation and failure report. Guy Schwartz Sent from my iPhone On Jul 22, 2013, at 8:59 AM, "Ed Jones" <, >wrote: Guy, I called this morning to update you on the abandonment of Nicolai Creek#14 and left a message, but an email might be helpful. Following my note below regarding the open-hole plug (sent yesterday), we set a retainer at 650' and pumped 20 bbl (90 sx) of 15.3 ppg G cement, squeezing 15 bbl below the retainer at 300 psi, and leaving 5 bbl on top of the retainer. We are now preparing to pressure test the plug. However, we are going to deviate from the Procedure: rather than close the blind rams and pressure the casing and plug to 1500 psi, we are running an RTTS packer to about 600', setting it, and testing the plug below it to 1500 psi—I believe that this meets the requirements. The reason for doing this is because when we closed the blinds and pressured up, we found a leak at 700 psi below the casing head. Apparently the movement of the BOP stack sometime during operations subsequent to the 1500-psi test on 7/8/13 had cracked the weld and compromised the 0 ring—this is an issue that we are looking into and are working with GE (Vetco) to remedy (prevent) on our next well. Please let me know if this method of testing the plug is not acceptable. Attached is the signed Sundry, an unsigned copy of which and Procedure were provided to your electronically on 7/20/13. Paper copies of the Sundry Notice and Procedure will be mailed. I did just get your email approving the open-hole plug. Please let me know if you have questions or concerns. 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 [ 1 Sent: Sunday,July 21, 2013 3:50 PM To: 'Jim Regg'; 'Schwartz, Guy L(DOA)' Cc: 'Aurora Company Man' Subject: RE: NC 14 cement plug 1 We did actually increase the cement volume last night to 50 bbl of 15.3 ppg cement. From the Halliburton Borehole Volume Log, based on the caliper run with the Platform Express log, with the top at 2746', the bottom of the plug should be at 3564', not quite to the 3600' planned. Please let us know ASAP if this is not acceptable, considering that we had pumped another 45 bbl of cement previously, which appears to be below 3920'. As Jon mentioned, we are preparing to set the cement retainer in the 9-5/8" casing and squeezing 15 bbl of 15.3 ppg G cement below it with 5 bbl on top of it, then pressure testing to 1500 psi. 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: Aurora Company Man [ ] Sent: Sunday, July 21, 2013 3:12 PM To: Ed Jones; Jim Regg Cc: Subject: NC 14 cement plug Saturday morning we spotted a 45 bbl.Cement plug at 3706'and pulled up to 2100"to WOC.We ran in the hole yesterday afternoon but did not encounter any firm cement . Did encounter green contaminated at 3600'. RIH to 3920'and spotted Hi Vis pill than pulled up to 3670'and another 45bbl. Cement plug. We just ran in the hole and tagged firm cement at 2746',we set 10K down on it twice to confirm it was hard cement. Plans are now to POH laying down drill pipe,standing back 700'to set the plug at the shoe. We do have a 9 5/8 retainer on location with running tools and a Halliburton hand for setting it. Jon West Aurora Gas, LLC <NC 14 PA Sundry Notice.pdf> 2 Schwartz, Guy L (DOA) From: Aurora Company Man <wellsitesuper@aurorapower.com> Sent: Sunday,July 21, 2013 12:12 PM To: Ed Jones; Regg,James B (DOA) Cc: Schwartz, Guy L(DOA) Subject: NC 14 cement plug Saturday morning we spotted a 45 bbl.Cement plug at 3706'and pulled up to 2100"to WOC.We ran in the hole yesterday afternoon but did not encounter any firm cement. Did encounter green contaminated at 3600'. RIH to 3920' and spotted Hi Vis pill than pulled up to 3670'and another 45bb1. Cement plug. We just ran in the hole and tagged firm cement at 2746',we set 10K down on it twice to confirm it was hard cement. Plans are now to POH laying down drill pipe,standing back 700'to set the plug at the shoe. We do have a 9 5/8 retainer on location with running tools and a Halliburton hand for setting it. Jon West Aurora Gas, LLC 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Friday,July 19, 2013 2:37 PM To: 'Ed Jones' Cc: Davies, Stephen F (DOA); Bettis, Patricia K(DOA) Subject: RE: Plug and Abandonment Approval Nicoli Crk#14(PTD 212-193) Ed, We looked at the log too... marginal at best. We would recommend a cement plug from 3650-3000 ft. and also one at the surface casing shoe 200 ft in length min per 20 AAC 25.112 (c)(3)(A) overlapping the oh/ch. Of course a surface plug is also required per 20 AAC 25.112 (d) . The lowest plug need to be tagged with drillpipe and the cmt plug at SC shoe needs to be pressure tested to 1500 psi and charted for 30 min. You have verbal approval to proceed with the cement plugs as stated above. A sundry with details should be submitted as soon as possible if you decide to P& A this weekend. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Ed Jones [rrrailto:jeJones maurorapower.com] Sent: Friday, July 19, 2013 1:25 PM To: Schwartz, Guy L(DOA) Cc: Davies, Stephen F(DOA) Subject: RE: Plug and Abandonment Approval Guy, Thanks for your prompt response. Attached are the mud log (MD) and open-hole Triple Combo log. As can be seen, most of the mud log shows were associated with coals—we really had no significant shows in sands (or we would probably be running pipe). However, the intervals at 3540-55', 3365-80', and 2745-58' appear to be correlate to some of the producing sands in the NCU 10—should we consider these to be hydrocarbon bearing? Otherwise, I am not sure what open-hole plugs we should set. (Our TD is 4830' MD). 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: Schwartz, Guy L(DOA) [maiIto:guy.schwartz9 alaska.gov] Sent: Friday,July 19, 2013 3:39 PM To: Ed Jones Cc: Davies, Stephen F(DOA) Subject: RE: Plug and Abandonment Approval 1 You can forward me the procedure (email) to P & A so you can get verbal approval if you so desire after your Geo review. You would then send in a sundry for documentation. Cc Steve too.. we may want to look at the OH logs also so a may be good to send mud log and eline logs too. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Ed Jones [mallto:jejones,a aurorapow_er_com] Sent: Friday, July 19, 2013 11:37 AM To: Schwartz, Guy L(DOA) Cc: Davies, Stephen F(DOA) Subject: Plug and Abandonment Approval Guy, We have drilled the Nicolai Creek#14 to TD of 4830' MD and have logged it,finding questionable pay. We are considering P&A, but are awaiting petrophysical review and investor/owner approval. Nonetheless, I am trying to get ahead of the game—to whom should I send an abandonment procedure,should we decide to do that(hopefully the decision will be made later this afternoon)? 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#14 PTD#212-193 API#50-283-20172-00-00 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 9.8 ppg mud. RIH w/ OEDP to 3670'MD and place a balanced cement plug across the interval 3000' to 3650' (250 cf/44.6 bbl, 200 sx Class G cement at 15.3 ppg) isolate the potential gas-bearing interval indicated on logs at 3538-56' MD and 3360-80'MD'. 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. 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: Plate to be 1/4" steel cut in a circle measuring 18" in diameter with the following information bead welded to one side: Aurora Gas, LLC Nicolai Creek Unit#14 PTD # 212-193 API# 50-283-20172-00 Place the plate,wording side up, over the cut-ff casing subs and weld to the outer casing string. 1 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. 2 Schwartz, Guy L (DOA) From: Ed Jones <jejones@aurorapower.com> Sent: Friday,July 19, 2013 1:25 PM To: Schwartz, Guy L(DOA) 7 3 " 6111 Cc: Davies, Stephen F (DOA) s( 70• Subject: RE: Plug and Abandonment Approval Attachments: AURORA_NCU_14_JULY_19_2013_COMPOSITE.pdf; Nicoli Creek no 14 CUSTOM MUD LOG MD TO_4830 Ft._COMPLETTE.pdf .(Z - Guy, Thanks for your prompt response. Attached are the mud log (MD) and open-hole Triple Combo log. As can be seen, most of the mud log shows were associated with coals—we really had no significant shows in sands (or we would probably be running pipe). However, the intervals at 3540-55', 3365-80', and 2745-58' appear to be correlate to some of the producing sands in the NCU 10—should we consider these to be hydrocarbon bearing? Otherwise, I am not sure what open-hole plugs we should set. (Our TD is 4830' MD). 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: Schwartz, Guy L(DOA) [mailto:guy.schvvartz;alalas_ka.wvv] Sent: Friday, July 19, 2013 3:39 PM To: Ed Jones Cc: Davies, Stephen F(DOA) Subject: RE: Plug and Abandonment Approval You can forward me the procedure (email) to P &A so you can get verbal approval if you so desire after your Geo review. You would then send in a sundry for documentation. Cc Steve too.. we may want to look at the OH logs also so a may be good to send mud log and eline logs too. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Ed Jones [inailtQ:jeJonesqvauroraRower_.com] Sent: Friday, July 19, 2013 11:37 AM To: Schwartz, Guy L(DOA) Cc: Davies, Stephen F(DOA) Subject: Plug and Abandonment Approval Guy, 1 We have drilled the Nicolas creek#14 to TD of 4830' MD and have logged it,finding questionable pay. We are considering P&A, but are awaiting petrophysical review and investor/owner approval. Nonetheless, I am trying to get ahead of the game—to whom should I send an abandonment procedure,should we decide to do that(hopefully the decision will be made later this afternoon)? 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 Schwartz, Guy L (DOA) From: Ed Jones <jejones@aurorapower.com> Sent: Friday,June 13, 2014 1:10 PM To: Schwartz,Guy L(DOA) Cc: George Pollock; Davies, Step -• DOA) Subject: RE: NC 14 Wellhead leak pi. (212-193 Attachments: Broken weld Nic-14 csg head 001 jpg; Broken weld Nic-14 csg head 002 jpg; Broken weld Nic-14 csg head 003 jpg;GE SOW Installation Procedure.pdf;2 SOW Casing Head With Base Plate and efo kit.xls Guy, This is to follow-up on my response of Tuesday, 6/10/14,to your email inquiry of Monday, 6/9/14, regarding the cause of the wellhead leak at NC 14 last summer. As I stated, "Basically, what we determined to have happened was that the BOP stack was not equalized with the restraining chains,which allowed some differential strain when making or breaking connections. The fix was to equalize the restraining chains. There is also some concern that the weld was allowed to cool too fast. These issues were addressed on our second well, and we had no failures there." I inquired of GE and their response was that David Wallingford (consultant for Aurora) had the casing head picked up on about 07/30/13 to take to a inspection company for analysis on the weld. George Pollock sent me the email chain below initiated by David Wallingford's inquiry to Ben Stevens of GE,then forwarding Ben's diagram, SOW Wellhead welding procedure, and photos (attached)to Nathan Perrin, General Manager of Mistras Group in Anchorage, who then forwarded all to one of his engineers, Russ Davis. The general conclusion was that the weld failed due to fatigue and poor weld quality. The remedy was to review the GE welding procedure with the welder and to be sure that it was followed nd to equalize the restraining chains to prevent fatigue—both of which were done on our second well, NC 13. Please let me know if you need more information or need paper copies of any of this. Regards, Ed J. Edward Jones President Aurora Gas, LLC 4645 Sweetwater Blvd.,Ste 200 Sugar Land,Texas 77479 832-939-8991 (0) 713-899-8103(C) From: George Pollock Sent:Tuesday,June 10, 2014 11:51 AM To: Ed Jones Subject: FW: SOW Wellhead welding procedure. From: Nelson Perrin [mailto:nelson.perrin@mistrasgroup.com] Sent: Monday, August 12, 2013 4:02 PM To: gpollock@aurorapower.com Subject: FW: SOW Wellhead welding procedure. See below the comments from one of our engineers. 1 Thank you Nelson Perrin General Manager Services Division P:907-522-2112 M:907-229-2475 F:907-522-2124 nelson.perrin@mistrasgroup.com MISTRAS Group,Inc. 2410 Azurite Court Suite B•Anchorage,AK 99507• US www.mistrasgroup.com This electronic mail is intended only for the use of the addressee(s)named herein and may contain legally privileged and confidential information.If you are not the intended recipient of this electronic mail,you are hereby notified that any dissemination,distribution or copying of this electronic mail is strictly prohibited.If you have received this electronic mail in error,please immediately notify us by return electronic mail or telephone and delete this electronic mail from your system. From: Russ Davis, CSP Sent: Monday, August 12, 2013 6:09 AM To: Nelson Perrin Subject: RE: SOW Wellhead welding procedure. Looks to me like the weld configuration is not what I would expect to hold this much weight. Can't really tell without a WPR or drawing but it looks like a small fillet weld without any bevel into the pipe so the only strength is in the fillet leg and from the pictures that does not look like a lot. I would guess fatigue also. From the OSP it looks like the fillet is the weld of choice but I do not find a fillet size requirement on anything in the OSP. The lab may be able to find contamination or cracking in the weld. From the pictures I would stick with fatigue failure and weld quality and the weld quality that David mentioned. It is not a real pretty weld. I know that don't make it bad but it is an indication. I can call as soon as I get to Chicago.About 11:00 Central time if you have time. Thanks Russ Russ Davis,CSP National AIMS MI WE Manager Asset Integrity Management Services(AIMS) P:281-478-1636 M:713-247-9197 F:281-478-1783 Russ.Davis@mistrasgroup.com MISTRAS Group,Inc. 4000 Underwood Road • La Porte,TX 77571• US www.mistrasgroup.com This electronic mail is intended only for the use of the addressee(s)named herein and may contain legally privileged and confidential information.If you are not the intended recipient of this electronic mail,you are hereby notified that any dissemination,distribution or copying of this electronic mail is strictly prohibited.If you have received this 2 electronic mail in error,please immediately notify us by return electronic mail or telephone and delete this electronic mail from your system. From: Nelson Perrin Sent: Sunday, August 11, 2013 11:44 AM To: Russ Davis, CSP Subject: FW: SOW Wellhead welding procedure. Russ, can you call me Monday when you have a few minutes?The well head to casing separated from each other as you can see in the photos. Their OSP is pretty generic and not qualitative at all. These folks want to understand what happened. .. Failed due to fatigue (my 1st guess fatigue,weld type, electrode 7018, dissimilar metals and thicknesses).They are handling/guiding this head downward from 12 foot up on the casing. I think that is like a torque wrench trying to position an extremely heavy piece of metal. Or Failed from pressure (looking at their SOW shows the design to be exactly what I felt inside the casing with me hand. A small piece of the rubber 0-Ring was still in the groove. I believe that the weld from the casing to head had to fail to get to the ring. I do not believe the ring failure could have caused this weld separation) Thank you Nelson Perrin General Manager Services Division P:907-522-2112 M:907-229-2475 F:907-522-2124 nelson.perrin@mistrasgroup.com MISTRAS Group,Inc. 2410 Azurite Court Suite B •Anchorage,AK 99507 • US www.mistrasgroup.com This electronic mail is intended only for the use of the addressee(s)named herein and may contain legally privileged and confidential information.If you are not the intended recipient of this electronic mail,you are hereby notified that any dissemination,distribution or copying of this electronic mail is strictly prohibited.If you have received this electronic mail in error,please immediately notify us by return electronic mail or telephone and delete this electronic mail from your system. From: David Wallingford [mailto:david996@yahoo.com] Sent: Saturday, August 10, 2013 2:09 PM To: Nelson Perrin Cc: George Pollock Subject: Fw: SOW Wellhead welding proceedure. Attached are the casing head welding procedures and diagram. As we discussed; please send a preliminary report to George Monday and then a followup when your lab finishes its investigation. I hope I gave you enough information to help determine why the weld failed. The weld was tested to 500 psi after it was completed. As I told George, I believe a combination of weld quality and side loading/stress was most likely what caused the failure. Thanks David Wallingford 3 All American Oilfield George Pollock 277-1003 office 351-8286 cell gpollock@aurorapower.com Forwarded Message From: "Stevens, Benjamin (GE Oil&Gas)"<Benjamin.Stevens@ge.com> To: "david996vahoo.com"<david996(a�vahoo.com> Cc: "wellsitesupera,aurorapower.com"<wellsitesuperaurorapower.com>; "Krause, Kevin (GE Oil&Gas)" <kevin.krause(ca�ge.com>; "Shilling, Jason (GE Oil&Gas)"<jason.shilling@ge.com>; "Griner, Derek(GE Oil &Gas)" <derek.griner(a�ge.com>; "Stevens, Benjamin (GE Oil &Gas)" <Beniamin.Stevens(a�ge.com> Sent: Sunday, July 21, 2013 11:09 PM Subject: SOW Wellhead welding proceedure. Hello there David. Here is G.E's recommend procedure for you and the welder to follow. Since this is a re-weld, I highly recommend that he grind out all the old weld as best he can before he tries again. Also,have him pay particular attention to the pre and post heating. That can make or break the weld/test. Included in this email is a Field Inspection Sheet of the Casing Head with all relevant measurements and part numbers. I'm sorry, but I0 cannot release the machine drawing of the head, however, you can see in the inspection sheet the stub pocket in relation to the base plate. If there is ANYTHING I can do to further help you, questions, concerns, etc, or if you decide that you need a service hand to fly over and assess the situation/test the weld, please don't hesitate to call. Regards, Ben Stevens Field Service Technician T+1 907 262 5606 F+1 907 262 5607 M+1 907 394 0922 Benjamin.stevens@ge.com 4 4 , . 1 K 12 ,,:,� ,, x_:,,,- r s 5 t ,,,, :,.. .. _ Ar 7ti e i.•.':`.,-, ,, +�"�64. Wyk - , T '• zap > - , .w* ti ' z x r. - 0,.., , ` d b' "kr. v 4 , .,r r.„. a h x -' -:...,;.A=1:''':7:-.;41*. , .:f .-- , .;4 0 asH,... .. i ,. . s0; ,., , .. . . .._. ., if lir r, 1111 , 4,15' > ,k ".o- .. w\�711%/14‘. s7 THE STATE Alaska Oil and Gas F.� �� °fALASKA Conservation Commission wh GOVERNOR SEAN PARNELL 333 West Seventh Avenue 14-44A0.-, Anchorage, Alaska 99501-3572 Main: 907.279.1433 J. Edward Jones Fax: 907.276.7542 President Aurora Gas, LLC 1400 W. Benson Blvd., Suite 410 Anchorage, AK 99503 Re: Nicolai Creek Field,North Undefined Gas Pool,NCU#14 Aurora Gas, LLC Permit No: 212-193 Surface Location: 973' FSL, 624' FWL, SEC. 18,T11N, R12W, SM Bottomhole Location: 2038' FSL, 1337' FEL, SEC. 18, 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. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. This permit to drill does not exempt you from obtaining additional permits or 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, /C)I- 1-e- �----- Cathy P. oerster �,.y�� Chair DATED this W day of January,2013. cc: Department of Fish&Game,Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) RECEIVED STATE OF ALASKA Alf .OIL AND GAS CONSERVATION COMMI N DEC 21 2012 • ' PERMIT TO DRILL /� 20 AAC 25.005 AOGCC la.Type of Work: 1 b.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1 c.Specify if well is proposed for: Drill ❑r • Redrill ❑ Stratigraphic Test ❑ Development-Gas Q ' Service-Supply ❑ Multiple Zone Q • 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#14 3.Address: 6.Proposed Depth: j v q .i3 12.Field/Pool(s): 1400 WEST BENSON BLVD,STE 410,ANCHORAGE,AK 99503 MD: `718 D: 4500' Nicolai Creek Unit 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): North Undefined Gas . Surface: 973'FSL,624'f`'SEC.18,T11N,R12W,S.M. • ADL-391472(surf) &-391265(bhl) Top of Productive Horizon: EEG,P)t./ '.i `Y 8.Land Use Permit: CIRI 13.Approximate Spud Date: 1627'FSL,1096'FEL,SEC.18,T11N,R12W,S.M. 5/1/2013 Total Depth: 9.Acres in Property: 14.Distance to Nearest Prope : 2038'FSL,1337'FEL,SEC.18,T11N,R12W,S.M. 1587& 168 ' 200' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 298 feet 15.Distance to Nearest Well Open Surface: x-240,889 y- 2,574,784 • Zone-4 GL Elevation above MSL: 282 feet to Same Pool: 3494'(surf) • 16.Deviated wells: Kickoff depth: 800 feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 30 degrees Downhole: 2093 • surface: 1643 ' 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' 16' 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" 15.5W J-or K-55 LTC 4680' 0 0 4680' 4500' 146 sx/361 cf LWt Lead at 12.0 ppg+ 519 sx/700 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 TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): 20. Attachments: Property Plat Q BOP Sketch❑ Drilling Program Q Time v.Depth Plot Q Shallow Hazard Analysis Diverter Sketch❑ Seabed Report ❑ Drilling Fluid Program Q 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. Edward Jo ;�� Title President Signature �� `� Phone 281-495-9957 Date 12/17/2012 Commission Use Only Permit to Drill .., Ar mber: ermit Approval See cover letter for other Number: 2_/2- /(71-3 50- 2.-i 5 - 7�J( 72 00- te: / (��/�� requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed Tethane,gas hydrates,or gas contained in sh s: [,! Other: , 3ODC pSte: Sof' l c.,S• Samples req'd: Yes 0 No Mud log req'd: Yes [ o❑ - � H2S measures: Yes❑ No Dire nal svy meq'^ d Us [�No❑ ¢ SQI� SvhK ltSt P 'S t1. .<Lam! c,c 4.9-7-L_ xtei, �� / v' (_s" iZ " DiVe.e Ll al./,,' " p- Z0,4A-c 2✓S.036 ` c1L/Ka,) _ APP VED BY THE COMMISSION DATE: /-� '`3 ,COMMISSIONER /23 'CO RIGINAL , 0 ' l 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 V Aurora Gas, LLC December 17, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill: Nicolai Creek Unit#14 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 (in duplicate). 2) A plat showing the surface location of the well. 3) A Time versus Depth plot(in Drilling Program). 4) Proposed casing program. 5) Proposed cementing program (in Drilling Program). 6) Proposed drilling fluid program(in Drilling Program). 7) Proposed summary drilling procedure (in Drilling Program). 8) Summary of Drilling Hazards ((in Drilling Program). 9) Schematic of the proposed wellbore and completion. (in Drilling Program). 10) 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. 11) 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,NCU 14, 12/17/12 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, LL A. C./ef/ efr/" _4Edward Jone• K-C)- President enclosures 'PROJECT NO. DRAWN BY: DATE: SCALE GRID 123049 msm OCT 8, 2012 1 inch = 200ft. lie61 / LOCAT SEC.LINE ION: OFFSETS: SECTION 18 NORTH 973' FSL TOWNSHIP 11 NORTH, RANGE 12 WEST .. w 624'FEL SEWARD MERIDIAN,ALASKA ' k '' SE14 1.BASIS OF HORIZONTAL AND VERTICAL SEC. 1 8 CONTROL WAS DETERMINED BY AN NGS OPUS SOLUTION FROM CORS BASE T 11 N R 12 W STATIONS"KEN5 PID DJ3029","TSEA PID A10952"AND"ANC1 ANCHORAGE AIRPORT ARP PID DE6227" OBSERVED SM AK MARCH 17,2009 FOR MCI CONTROL STATION GP BM-1 1993:ALASKA STATE PLANE NAD 83 ZONE 4 EPOCH 2003 DATUMPROPOSED PAD N:2566447.996 300' / E: 1388129.471 wJ ELEVATION: 134.07 GEOID 06 NAVD88 w DATUM 2)SECTION LNE OFFSETS DETERMINED c / FROM TIES TO EXISTING BLM SECTION NCU 144 CORNERS AND ADL MONUMENTS RECOVERED THIS SURVEY. 3)CORPSCON VERSION 6.0.1 WAS USED NCU#14B WELL FOR DATUM CONVERSION BETWEEN AS-STAKED NAD83 AND NAD27. 200' II, 05 N:2574784.340 • E:240889.884 \ ���'P LAT:61°02'22.248"N ,, 1 j LONG: 151°27'41.828"W N� '�-- li, ELEV.D281.8'ASP OAVD88 w Q0NE 4 0 7�Q,OPO 20' z QeLI -.0\P V4-,s ��0 O , O I J 77c,P F 446. 'vt"\" I n G��� P�E.�F A4 Is •, • 1i my.sw * 49I-Hi'N / - 1 �� \ j 0,0 M. SCOTT MCLANE. of `nom ' ' . ±" �0_6>/ / ,/ --p ••••.• 8tno• a12 ...' c., 40. -1,0 ,1 h O FESS I010"‘"•• �°' FND BLM SEC. 1ICORNER 11‘Vt\```� MONUMENT N 2573796.876 E 241494.067 1 S18 S17 SECTION LINE S19 S20 /11 NICOLAI CREEK NO. 1434/ELL AS-STAKED ENGINEERING-TESTING SURFACE LOCATION DIAGRAM NAD27 SURVEYING-MAPPING Nicuol C_ P.O.BOX 468 SOLDOTNA,AK.99669 APPLICANT: '� = Aurora Gas L L C VOICE:(907)283-4218 - FAX:(907)283-3265 W WW.MCLANECG.COM ADDRESS: 6051 NORTH COURSE DRIVE SUITE 200 Consulting Inc HOUSTON,TX 77072 PROJECT NO. DRAWN BY: DATE: SCALE GRID 123049 1 inch = 200ft. msm OCT.8, 2012111111N 22' 25( 4i7: SEC.LINE LOCATION: OFFSETS: SECTION 18 NORTH 973'FSL TOWNSHIP 11 NORTH, RANGE 12 WEST .-- 624'FEL SEWARD MERIDIAN,ALASKA -.6.--- SE 1/4 .(SE %4 1.BASIS OF HORIZONTAL AND VERTICAL CONTROL WAS DETERMINED BY AN NGS OPUS SEC. 18 SOLUTION FROM CORS BASE STATIONS"KEN5 PID DJ3029","TSEA PID A10952"AND"ANC1 T1 1 N R 12 W ANCHORAGE AIRPORT ARP PID DE6227" OBSERVED MARCH 17,2009 FOR MCI CONTROL STATION GP BM-1 1993:ALASKA STATE PLANE S M AK NAD 83 ZONE 4 EPOCH 2003 DATUMI N:2566447.996 E: 1388129.471 PROPOSED PAD ELEVATION: 134.07 GEOID 06 NAVD88 DATUM 2)SECTION LNE OFFSETS DETERMINED FROM 300' J / TIES TO EXISTING BLM SECTION CORNERS ANDLJJ ADL MONUMENTS RECOVERED THIS SURVEY. JN NCU 14 ' NCU#14B WELL AS-STAKED 200' �,0 N:2574548.046 / A��Q E:1380914.944 61 02 204 \z, LAT:61°02'20.232"N ,�I j LONG: 151°27'49.896"W J��( ali, NAD83 ASP ZONE 4 ELEV.281.8'NAVD88 OQ0 G'S- 7O�OpO 2p' z Q"ts0\ /z5� O O � � U- \'0,p, ��/ m 4c...... F i4/ 'II CJ _,�P. 1 ..- Ii 7 I / : * :•49al i\ * � .L' ,-27 — \ F j c� .M. SCOTT McLANE.:.g \ • �i sr 4928–S ,� — 'pp9�i,L III '1. ••'• 8thOctl2 •.••• sit- O C I,1II �F\\\\�� `` CORNER MONUMENTC N 2573560.587 E 1381519.039 ! S18 S17 SECTION LINE S19 S20 lkNICOLAI CREEK NO. 14 'WELL AS-STAKED ENGINEERING-TESTING SURFACE LOCATION DIAGRAM NAD83 SURVEYING-MAPPING LAA L P.O.BOX 468 APPLICANT: Aurora Gas, LLC 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 Aurora Gas, LLC CU#14 Drilling Program • NICOLAI CREEK UNIT #14 Nicolai Creek Unit#14 is a 4680'MD/4500' TVD grass-roots well targeting Beluga and Tyonek • Gas Production. It is located at the northern edge of the Nicolai Creek Gas Field,proposed as a directional hole, drilled from a new pad, located about 3500' northwest of the Nicolai Creek#10 well,to a BHL+/-1280' northwest of the surface location. The BHL is to be more than 3400' . from the#10 well PBTD,but believed to be in the same reservoir. 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#14—pad GL elevation is about 282'. 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). Also,plans are to build sufficient emergency cuttings containment for planned drilling program and to 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 L t" conductor will have been pre-installed. Install 13-5/8" VG LOK head. 3. Rig uRdiverter&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'+l 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' and 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 _!CU#14 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% KCl-polymer) mud system, drill 20' new formation. Circulate bottoms up and until MW out–MW in. Pull back into shoe & perform FIT / LOT up to 16.0 ppg EMW W maximum with low volume test pump as follows: a) SI annular preventer. b) Determine pump pressure for 16 ppg MWE: DPP=(16.0-actual MW) X (.052 X shoe TVD). c) Using low pump rate (0.5 to 1.0 BPM),pump down DP until achieving 16 ppg MWE DPP, recording volume pumped and pressure on AG LOT test form. Hold DPP for 15 minutes, recording pressures every minute on AG LOT test form, which will plot results. If pressure drops more than 10% in 15 minutes, re-pressure and retest. d) If 16 ppg MWE pressure not achieved,pump until pressure starts to leak off— shut down pump and record pressures every minute for 15 minutes on LOT AG test form. Determine LOT pressure. e) Release pressure and record volume flowing back(to 0 DPP). f) Email results to Drilling Manager and Engineer. Call if FIT pressure of 16 ppg not achieved. 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 4680' MD/ 4500' 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. Prepared by Ed Jones Page 2 of 12 Rev. 1.1 Aurora Gas, LLC .CU#14 Drilling Program 14. POOH, rack back drillstring, and lay down mud motor and MWD. 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. PU 7-7/8" bit and bit sub. RIH w/ 7-7/8"dri-Jljg assembly (except mud motor and MWD)to TD & condition hole for runnings casing. Ensure cementing head has proper connections or proper cross-over and is available for quick rig up. posy 6—o'- 16. POOH while laying down drillpipe & BHA, RU to run casing. Verify cementer's equipment is ready. 17. Install 5-1/2"pipe rams and test. 18. Run 4680' 15.5# J- or K-55 LTC casing, installing 1 centralizer per joint centered on 1st 4 joints above shoe, 1 centralizer every 2nd joint in open hole & every 3`d 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. 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 1450' 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 1450'. 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 displaced with and bumped with clean 3% KCl 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 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 surface. LD 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. Prepared by Ed Jones Page 3 of 12 Rev. 1.1 Aurora Gas, LLC CU#14 Drilling Program 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 211d and 3rd hydraulic packers—all sliding sleeves are to be closed and a pump-out ball-seat run 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, increase pressure to 3400 psi to pump out ball and seat. Install BPV. ND BOP. NU and test tree. 27. Pull BPV. 28. Swab in well. (Alternatively, if chemical injection line is run, RU N2 bottle to chemical injection line on tree and open well to choke manifold and open N2). Well should unload 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. 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 #14 will be accessible via existing gravel roads currently in use to support production operations, upgrade about 1600' of old road (toward old Nicolai Creek bridge), and 650' of new gravel road. Rig Aurora Well Service, Rig No. 1 (AWS 1) may be used to drill the Nicolai Creek Unit #14 well, depending upon availability. The Alaska Oil & Gas Conservation Commission has information Prepared by Ed Jones Page 4 of 12 Rev. 1.1 Aurora Gas, LLC ,CU#14 Drilling Program 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): Nicolai Creek Unit#14 Proposed Logging Program Well Section Depths(ft) OH CH Log Type 12-1/4"Surface 0'—700' Al N/A: No open-hole logs planned for surface at this time. GR only in cased hole. 7-7/8"'Production 700-4680' -V Platform Express: Array Induction,Compensated Neutron, Hole Litho-Density, SP,GR,and/or FMI/DM,and possibly DSI.. • Also MDT or XPT and Sidewall cores. 5-1/2" Csg surface—4600' 4 GR/CBL/CCL(USI-CMT) Surface—TD Open 100'—4680' 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. tlatPI:1,/ Prepared by Ed Jones Page 5 of 12 Rev. 1.1 Aurora Gas, LLC ACU#14 Drilling Program 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 1041 PV 10-30 YP 30-40 API Filtrate not controlled Total Solids 15 —25 % Bentonite Gel (Aquagel) mud system Drilling Fluid Properties While Drilling 7-7/8" interval to 4680' Beluga and Tyonek Formations Base Fluid Density 9.5— 11.0 ppg--) PV 22—30 YP 20-30 API Filtrate < 5 Total Solids 10— 15 % Polymer(HES EZ Mud, or equivalent)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 r� Disposal Well. Brine will be placed in tanks for use in future wells or injected into the Aspen 1 Disposal well. Prepared by Ed Jones Page 6 of 12 Rev. 1.1 Aurora Gas, LLC XU#14 Drilling Program 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: 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. Prepared by Ed Jones Page 7 of 12 Rev. 1.1 Aurora Gas, LLC 1CU#14 Drilling Program 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 4680' to 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: 4680-1500' =3180' 3180' x .0309 bbl/ft x 1.25 (25%excess)=122.8 bbls Shoe Joint: 85' x .0238 bbl/ft=2.0 bbls Total Tail Cement Volume= 124.8 bbls Actual volumes will be calculated at time of running casing due to potential variation in depth from planned. Cement System Type Cement Weight(ppg) bbl cf sx Lead @ 2.47cf/sx , G 12.0 64.4 361.3 146 Tail @ 1.35 cf/sx Type I 14.8 124.8 700 519 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 2093 psi at 4500 ft. (TVD). Pressures measured at the Nicolai Creek Unit#10 well indicated a maximum gradient of .0.465 psi/ft with a bottom-hole pressure of 1631 psi recorded at 3574' (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 0.465 psi / ft and multiplying by the total TVD depth. Prepared by Ed Jones Page 8 of 12 Rev. 1.1 Aurora Gas, LLC 1CU#14 Drilling Program D Maximum Anticipated Surface Pressure=(.465 - .1) * 4500' = 1643 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 ppg 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 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 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 location is the BHL of the recently drilled Nicolai Creek Unit#10 well, which is 2191' south of this location in Section 17 at its closest point (PBTD of NCU #10 to surface location of#14). There are no other wells in this section, Section 18. t/ 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 ACU#14 Drilling Program 0 2 7/8 6.5#8rd EUE J-55 Tubing " 0 " • Aurora Gas, LLC : , ,,, '' • NICOLAI CREEK 13-3/8" Structural Conductor UNIT #14 POSSIBLE '. " driven to 94+'GL Configuration(exact M ` determined by logs and tests) ' A ` 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 A x,+ ' r"+ S " displaced over to inhibited 1 /13 packer fluid through sleeve • ' (a 1445' Prospective Pay Tops Beluga — 700-1700'MD/TVD •, Carya 2-1.1—1800'MD Carya 2-3—2400'MD Carya 2-4.2—2535'MD Carya 2-5—2900'MD ','• Hydraulic Set Packer @ 1750' Carya 2-6--3410'MD -- 111 Carya 2-1 IIIX 111 Sliding Sleeve @—1800' Perforation Intervals to be Hydraulic Set Packer @ 2450' determined by open-hole logging. Sliding Sleeve @—2500' 1 Carya 2-3 = ►.I9 1= _ Hydraulic Packer @ 2900' Carya 2-4.1 Sliding Sleeves @—3000' 1:11 111 " Hydraulic Packer @ 3150' • , Sliding Sleeve @ —3200' Carya 2-4.2 IIIIE Carya 2-5&2-6 .:• 2 7/8"6.5#EUE 8rd Tubing w/On-Off Tool on Mechanical Packe r@ 3400'MD ' w/231 profile X nipple . '. Estimated PBTD @4600' 5-1/2"15.5#K-55 Casing to 4680'MD l Drill 7-7/8"Hole to 4680'MD/ A ,C . 4500'TVD Prepared by Ed Jones Page 10 of 12 Rev. 1.1 Aurora Gas, LLC .+1CU#14 Drilling Program NICOLAI CREEK 14 DRILLING TIME 0 ` 1 \,2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 -500 • • -1000 • -1500 -2000 - 500 -- Seri d est -9)00 -3500 -4000 -4500 • • • • -5000 - DAY Days 1-3: Drill 12-1/4"Hole Days 3-6: Run and cement 9-5/8" casing Day 6: Test casing, drill out w/7-7/8"bit and run FIT. Days 6-17: drill straight 7-7/8"hole to 4680' MD/ 4500' TVD Days 19-20: Log Days 21-23: Run 5-1/2" casing and cement. Days: 24---: Complete and test well. Prepared by Ed Jones Page 11 of 12 Rev. 1.1 Aurora Gas, LLC .4CU#14 Drilling Program NICOLAI CREEK UNIT #14 Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE There is potential for abnormal pressured shallow gas. Ai 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. Ai Due to potential for shallow gas kick, very little response time will 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 #14 WELL PLAN FOR ADDITIONAL INFORMATION Prepared by Ed Jones Page 12 of 12 Rev. 1.1 N Q ¢ cNI ,I. vo I 00 00 M O O N flQ 'O0 -d � N -0 0 a.o q O � a) 0 CA O O �' o ++ 0 cg O — s. T7 3 40 O -� :v 0 a f::::). R 8 8 a FA a) N O c� '' O O no o "o ao O 0 cu I.O00U '41.1a) O ►�r u ti b +5. OOO rn A.-.1 O 0 b •• Oc . r. "CO 0 — V�e 4,11 CO Fo o O. a 2 ~ ax° -: C cd :D N O' . x• A -0 0V N W M t"--• N a) ,z O a) 0 N_ 0.0 a) .1' N .�0q o + a.) .+ . 7t' iC0b4 *N a) . , 0 . N 0 = U Q `np . OO U • > .r a C.) -1'3 N �5 , oo � - U j V c)- o n O++ cu v n 7) cd O — a) VN 0 U "O N O -� M cdC.) W > "0 ~ U U C) O C/a S3. O4 E- E- COV' N a 0 cn ° U 0 0 Cc /1) >q H C CN Di H o �o (-,i cd 4, w a) 5 0 0 ti ti Nat 4a -• - w b NN cv0 0 _ M ..S cc O O OO N � N -� n a ' 'n d p4 0 Uy .f) M a) - ti a) r- M ~ � H - O"a) Np CCS O yE. U• = q ,-• 0z q * O o i• cid N - 4t N bA el 0 N U O�0 ^•'' N M ~ bo O,0 "" C s. .- O ,.. Os kr, opo .E O� �i 0 U• Q o, U 44 RECEIVED JAN 092013 A®GCC I Aurora Gas, LLC Cook Inlet Nicolai Creek Unit Plan NCU #14 NCU 14 Plan: NCU 14 WP3.0 Standard Proposal Report 09 January, 2013 ,11 "'° HALLIBURTON Sperry Drilling Services .,CTION DETAILS HALL 1 U R T O N west(- Sec MD Inc Azo TVD +N/-S +E/-W DLeg TFace VSec Target -600 -500 -400 1 16.20 0.00 0.00 16.20 0.00 0.00 0.00 0.00 0.00 2 750.00 0.00 0.00 750.00 0.00 0.00 0.00 0.00 0.00 I I I I I I I I I I I I I 3 900.00 2.25 326.16 899.96 2.45 -1.64 1.50 326.16 2.94 4 1010.00 6.10 326.16 1009.65 9.10 -8.10 3.50 0.00 10.95 Sperry Drilling Services 5 1607.42 30.00 326.16 1573.56 161.72 -108.43 4.00 0.00 194.70 6 3115.99 30.00 326.16 2880.07 788.13 -528.47 0.00 0.00 948.91 7 3685.90 8.00 328.18 3398.84 935.91 -627.56 4.00 180.00 1126.84 - 8 4779.90 8.00 326.18 4500.00 1064.69 -713.90 000 0.00 1281.87 NCU 14 TGT BHL revl _ • 1- 1 400_ Project: Cook Inlet - Site: Nicolai Creek Unit _ Well: Plan NCU#14 1300- Wellbore: NCU 14 - Plan:NCU 14 WP3.0(Plan NCU#14/NCU 14) Plan NCU#14/NCU 14 WP3.0 95%cont. _ 1200- _ (l) IPANY DETAILS: Aurora Gas,LLC' _ Drilling 1100- Total Depth:4779.9'MD,4500'TVD Calculation Method Minimum Curvature • _ _ _ _ - ' Error System: 1SCWSA 5 1/2" -- I.IS Scan Method: Closest Approach 3D • Error Surface: Elliptical Conic - - _ _gyp Warring Method: Error Ratio 1000- ��}� OP -1000 - N►ZWi1Irt:�� End Dir:3665.9'MD,3396.84'TVD - 900- -- 900 _ Start Dir 4°/l00':3115.99'MD,2880.07TVD - - 9 - 800- -- 800 • • • 700- -- 700 O - - rA - C E. O 600- -- 600 - - o r - _ + c - 500- -500 N 1 _ _ C O S. cn - - 400- End Dir:1607.42'MD,1573.56'TVD -400 - ,.1L 3 - 300- -300 • - : Stan Dir 4e/100':1010'MD,1009.65TVD - 200- • -- 200 Start Dir 3.5"/100':900'MD,899.96TVD - CASING DETAILS Star;Dir 1.5,1100':750'MD,750TVD - 100-- TVD MD Name Size ,, -- 100 700.00 700,00 9 5/8" 9-5/8 4499.99 4779,89 5 1/2" 5-1/2 - \,'0 _ 0- REFERENCE INFORMATION -y v -0 9 5/8" - - Co-ordinate(N/E)Rcferencei Well Plan NCU#14,Grid North - Vertical(TVD)Reference:NCU 14 plan 298.008(KB+GL) - Measured Depth Red'erence:NCU 14 plan l 298.008(KB+GLI Calculation Method:Minimum Curvature - -100- --100 WELL DETAILS:Plan NCU#14 _ Ground Level: 281.80 - Northing Easting Latittude Longitude-200- 0.00 2574784.34 240889.88 61.039513 -151.461819 --200 - WELLBORE TARGET DETAILS(MAP CO-ORDINATES AND LAT/LONG) - -300- --300 - Name TVD +N/-S +E/-W Northing Easting Latitude Longitude Shape - - NCU 14 TGT BHL revl 4500.00 1064.69 -713.90 2575849.00 240176.00 61.042381 -151.465779 Circle(Radius:150.00) - -400 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I - -400 -1000 -900 -800 -700 -600 -500 -400 -300 -200 -100 0 100 200 300 West(-)/East(+)(200 ft/in) HALLIBURTON WELL DETAILS Plan NCI)#14 Ground Level: 281.80 Northing Easting Latittude Longitude Slot Sperry Drilling Services 0.00 2574784.34 240889.88 61.039513 -151.461619 SECTION DETAILS 2 Sec MD Inc Azi TVD ON/-S +E/-W DLeg 7Facc VSee T4rgcl. 750.00 0. - 1 16.20 0.(1000 0.0.00W 750.000.00 00.0000 .16.20 0. 0.W 0.00 0.00 0.00 0.0000 W 0.00QW 0- 3 900.00 2.25 326.16 899.96 2.45 -1,64 1.30 326.16 2.94 - 4 1010.00 6.10 326.16 1009.65 9.10 -6.10 3.50 0.00 10.95 5 1607.42 30.00 326.16 1573.56 161.72 -108.43 4.00 0.201 194.70 6 3115.99 30.19) 326.16 2880.07 788.13 -528.47 0.00 0.00 948.91 - 7 3665,90 8.00 326.16 3396.84 935.91 .627.56 4.00 180.00 1126.84 •• - 8 4779.90 8.00 326.16 4500,80 1064.69 -713.90 0.00 0.00 1281.87 NCU 14 TOT Bill.rev l l 300- ,-31111 - W'EUSC*E TARGET 11EI'.AUS/M9'L'/c<arOINA'niS AW 107 LOOJ n WU 41,-8 +E'-W Nordin, Exlin, Lan* L+nylu0+ Shap+ N41'14 h:i ala.rnl +Nal00 106169 -73.90 25751011.00 240176110 61.0121111 -151.465779 Cirtb(0+00+.I.b WI Beluga Sands I - 600- REFERENCE REFERENCE INFORMATION • A L Co-ordinate(N/E)Reference:Well Plan NCU#14,Grid North 9 5/8" Start Dir 1.5°/100':750'MD,750'TVD Vertical(ND)Reference:NCU 14 plan298.008(KB+GL) Measured Depth Reference: NCU 14 plan(r 298.000(KB+GL) Start Dir 3.5°/100':900'MD,899.96'TVD Calculation Method:Minimum Curvature 900- Start Dir 4°/100':1010'MD,1009.65'TVD Project: Cook Inlet - Site: Nicolai Creek Unit 1200- Well: Plan NCU#14 Wellbore: NCU 14 Plan:NCU 14 WP3.0(Plan NCU#14/NCU 14) 1500- CASING DETAILS CARYA 2-1 - -End Dir : 1607.42'MD,1573.56'TVD TVD MD Name Size 700.04300.00 9 5/8" 9-5/8 44991989.89 5 1/2" 5-1/2 1800_ COMPANY DETAILS: Aurora Gas,LLC -18000 C c _CARYA 2-1-1 Drilling _ -4 c _ _ rD 0O 2100- Calculation Method: Minimum Curvature -2100< CO _ Error System:ISCWSA _ CD Scan Method Closest Approach 3D _ -C _ Error Surface: Elliptical Conic - cu - N - Warning Method: Error Ratio - 0 2400- CARYA 2-2-1 _--_ -2400 U _ - 3 - cp > - • - O 2 -2700 2700- CARYA 2-2-2 • H _ . _ Start Dir 4°/100':3115.99'MD,2880.07'TVD _ CARYA 2-3-3 - 3000- -3000 3300- CARYA 2-4-2 -3300 _ End Dir :3665.9'MD,3396.84'TVD 3600- -3600 CARYA 2-6-1 3900- -3900 4200- -4200 4500- NCU 14 TGT BHL rev1 - -4500 5 1/2 _ Total Depth:4779.9'MD,4500'TVD - 4800- -4800 • _ Plan NCU#14/NCU 14 WP3.0 _ 5100- -5100 '' 1 I I i I 1 I l I 1 I I I I I I l I I l I I I 1 I I I IrT I I V I I I r7......1...-.-i...-.171 I I I I ,.-.-r I l i r-.r I L I I T...r.......1.--.7._.T 11 -1-T -900 -600 -300 0 300 600 900 1200 1500 1800 2100 2400 2700 3000 Vertical Section at 326.16°(600 ft/in) Halliburton Company Standard Proposal Report Database: .AK Compass PRD.16 Local Co-ordinate Reference: Well Plan NCU#14 Company: Aurora Gas,LLC TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Project: Cook Inlet MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit North Reference: Grid Well: Plan NCU#14 Survey Calculation Method: Minimum Curvature Wellbore: NCU 14 Design: NCU 14 WP3.0 Project Cook Inlet,COOK INLET BASIN Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Using geodetic scale factor Nicolai Creek Unit - - ' f -. _ Site Position: Northing: 2,565,258.00ft Latitude: 61.013499 From: Map Easting: 241,507.00ft Longitude: -151.456944 Position Uncertainty: 0.00 ft Slot Radius: 0" Grid Convergence: -1.27 ° Well Plan NCU#14 Well Position i-NI-S 0.00 ft Northing: 2,574,784.34 ft Latitude: 61.039513 +E/-W 0.00 ft Easting: 240,889.88 ft Longitude: -151.461619 Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 281.80ft Wellbore NCU 14 Magnetics Model Name Sample Date Declination Dip Angle Field Strength (0) (0) (nT) ,,,.. BGGM2012 4/30/2013 17.29 73.87 55,565 �,,,,,,>,,. ..-,, -,,,,,,,,I.-',,,,,,,,,,,- ,, ,,,,,,4,..----, V,P. Iu,;,,, h ad, ,40,..,,,N1-3-...,,,,,,,,,,,,...,--",- 0,,,,„ Design NCU 14 WP3.0 Audit Notes: Version: Phase: PLAN Tie On Depth: 16.20 Vertical Section: Depth From(TVD) +N/-S +E/-Wl` 1 :° t (ft) (ft) (ft) 16.20 0.00 0.00 326.16 Plan Sections Measured Vertical TVD Dogleg Build Turn �" Depth Inclination Azimuth Depth System +N/-S +E/-W Rate Rate Rate Tool Face (ft) (°) (°) (ft) ft (ft) (ft) (°/100ft) (°/100ft) (°/100ft) (°) 16.20 0.00 0.00 16.20 -281.80 0.00 0.00 0.00 0.00 0.00 0.00 750.00 0.00 0.00 750.00 452.00 0.00 0.00 0.00 0.00 0.00 0.00 900.00 2.25 326.16 899,96 601.96 2.45 -1.64 1.50 1.50 0.00 326.16 1,010.00 6.10 326.16 1,009.65 711.65 9.10 -6.10 3.50 3.50 0.00 0.00 1,607.42 30.00 326.16 1,573.56 1,275.56 161.72 -108.43 4.00 4.00 0.00 0.00 3,115.99 30.00 326.16 2,880.07 2,582.07 788.13 -528.47 0.00 0.00 0.00 0.00 3,665.90 8.00 326.16 3,396.84 3,098.84 935.91 -627.56 4.00 -4.00 0.00 180.00 4,779.90 8.00 326.16 4,500.00 4,202.00 1,064.69 -713.90 0.00 0.00 0.00 0.00 1/9/2013 8:39:07AM Page 2 COMPASS 2003.16 Build 73 Halliburton Company ALL.HALL.IBURTON Standard Proposal Report Database: .AK Compass PRD.16 Local Co-ordinate Reference: Well Plan NCU#14 Company: Aurora Gas,LLC TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Project: Cook Inlet MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit North Reference: Grid Well: Plan NCU#14 Survey Calculation Method: Minimum Curvature Wellbore: NCU 14 Design: NCU 14 WP3.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (°) Cl (ft) ft (ft) (ft) (ft) (ft) -281.80 ' 16.20 0.00 0.00 16.20 -281.80 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 100.00 0.00 0.00 100.00 -198.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 200.00 0.00 0.00 200.00 -98.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 300.00 0.00 0.00 300.00 2.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 400.00 0.00 0.00 400.00 102.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 500.00 0.00 0.00 500.00 202.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 600.00 0.00 0.00 600.00 302.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 610.00 0.00 0.00 610.00 312.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 Beluga Sands 700.00 0.00 0.00 700.00 402.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 9 5/8" 750.00 0.00 0.00 750.00 452.00 0.00 0.00 2,574,784.34 240,889.88 0.00 0.00 Start Dir 1.5°/100':750'MD,750'TVD 800.00 0.75 326.16 800.00 502.00 0.27 -0.18 2,574,784.61 240,889.70 1.50 0.33 900.00 2.25 326.16 899.96 601.96 2.45 -1.64 2,574,786.79 240,888.24 1.50 2.94 Start Dir 3.5°/100':900'MD,899.96'TVD 1,000.00 5.75 326.16 999.70 701.70 8.24 -5.52 2,574,792.58 240,884.36 3.50 9.92 1,010.00 6.10 326.16 1,009.65 711.65 9.10 -6.10 2,574,793.44 240,883.78 3.50 10.95 Start Dir 4°/100': 1010'MD,1009.65'TVD 1,100.00 9.70 326.16 1,098.78 800.78 19.37 -12.99 2,574,803.71 240,876.89 4.00 23.32 1,200.00 13.70 326.16 1,196.68 898.68 36.21 -24.28 2,574,820.55 240,865.60 4.00 43.59 1,300.00 17.70 326.16 1,292.93 994.93 58.68 -39.34 2,574,843.02 240,850.54 4.00 70.65 1,400.00 21.70 326.16 1,387.06 1,089.06 86.67 -58.11 2,574,871.01 240,831.77 4.00 104.35 1,500.00 25.70 326.16 1,478.61 1,180.61 120.05 -80.49 2,574,904.39 240,809.39 4.00 144.54 1,600.00 29.70 326.16 1,567.13 1,269.13 158.65 -106.38 2,574,942.99 240,783.50 4.00 191.01 1,607.42 30.00 326.16 1,573.56 1,275.56 161.72 -108.43 2,574,946.05 240,781.45 4.00 194.71 End Dir : 1607.42'MD,1573.56'TVD 1,624.09 30.00 326.16 1,588.00 1,290.00 168.64 -113.08 2,574,952.97 240,776.81 0.00 203.04 CARYA 2-1 1,700.00 30.00 326.16 1,653.74 1,355.74 200.16 -134.21 2,574,984.49 240,755.67 0.00 240.99 1,800.00 30.00 326.16 1,740.35 1,442.35 241.68 -162.06 2,575,026.02 240,727.83 0.00 290.99 1,900.00 30.00 326.16 1,826.96 1,528.96 283.21 -189.90 2,575,067.54 240,699.99 0.00 340.98 1,909.29 30.00 326.16 1,835.00 1,537.00 287.06 -192.49 2,575,071.40 240,697.40 0.00 345.63 CARYA 2-1-1 2,000.00 30.00 326.16 1,913.56 1,615.56 324.73 -217.74 2,575,109.06 240,672.14 0.00 390.98 ' 2,100.00 30.00 326.16 2,000.17 1,702.17 366.26 -245.59 2,575,150.59 240,644.30 0.00 440.97 2,200.00 30.00 326.16 2,086.77 1,788.77 407.78 -273.43 2,575,192.11 240,616.46 0.00 490.97 2,289.17 30.00 326.16 2,164.00 1,866.00 444.81 -298.26 2,575,229.14 240,591.63 0.00 535.55 CARYA 2-2-1 2,300.00 30.00 326.16 2,173.38 1,875.38 449.30 -301.27 2,575,233.63 240,588.61 0.00 540.96 2,400.00 30.00 326.16 2,259.98 1,961.98 490.83 -329.12 2,575,275.16 240,560.77 0.00 590.96 2,475.07 30.00 326.16 2,325.00 2,027.00 522.00 -350.02 2,575,306.33 240,539.87 0.00 628.49 CARYA 2-2-2 2,500.00 30.00 326.16 2,346.59 2,048.59 532.35 -356.96 2,575,316.68 240,532.93 0.00 640.95 1/9/2013 8:39:07AM Page 3 COMPASS 2003.16 Build 73 Halliburton Company HALLIBLIRTON Standard Proposal Report Database: .AK Compass PRD.16 Local Co-ordinate Reference: Well Plan NCU#14 Company: Aurora Gas,LLC TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Project: Cook Inlet MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit North Reference: Grid Well: Plan NCU#14 Survey Calculation Method: Minimum Curvature Wellbore: NCU 14 Design: NCU 14 WP3.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss +N/-S +E/-W Northing Easting DLS Vert Section (ft) (°) (a) (ft) ft (ft) (ft) (ft) (ft) 2,116.00 2,577.84 30.00 326.16 2,414.00 2,116.00 564.67 -378.63 2,575,349.00 240,511.26 0.00 679.87 CARYA 2-3-3 2,600.00 30.00 326.16 2,433.19 2,135.19 573.87 -384.80 2,575,358.20 240,505.09 0.00 690.95 2,700.00 30.00 326.16 2,519.80 2,221.80 615.40 -412.65 2,575,399.72 240,477.24 0.00 740.94 2,800.00 30.00 326.16 2,606.40 2,308.40 656.92 -440.49 2,575,441.25 240,449.40 0.00 790.94 2,900.00 30.00 326.16 2,693.01 2,395.01 698.45 -468.33 2,575,482.77 240,421.56 0.00 840.93 2,908.07 30.00 326.16 2,700.00 2,402.00 701.80 -470.58 2,575,486.12 240,419.31 0.00 844.97 CARYA 2-4-2 3,000.00 30.00 326.16 2,779.62 2,481.62 739.97 -496.18 2,575,524.29 240,393.72 0.00 890.93 3,100.00 30.00 326.16 2,866.22 2,568.22 781.49 -524.02 2,575,565.82 240,365.87 0.00 940.92 3,115.99 30.00 326.16 2,880.07 2,582.07 788.13 -528.47 2,575,572.46 240,361.42 0.00 948.91 Start Dir 4°l100':3115.99'MD,2880.07'TVD 3,200.00 26.64 326.16 2,954.02 2,656.02 821.23 -550.66 2,575,605.55 240,339.23 4.00 988.76 3,300.00 22.64 326.16 3,044.89 2,746.89 855.84 -573.87 2,575,640.16 240,316.02 4.00 1,030.43 3,400.00 18.64 326.16 3,138.46 2,840.46 885.11 -593.50 2,575,669.43 240,296.40 4.00 1,065.67 3,500.00 14.64 326.16 3,234.25 2,936.25 908.88 -609.44 2,575,693.20 240,280.46 4.00 1,094.29 3,600.00 10.64 326.16 3,331.81 3,033.81 927.05 -621.62 2,575,711.37 240,268.28 4.00 1,116.17 3,665.90 8.00 326.16 3,396.84 3,098.84 935.91 -627.56 2,575,720.23 240,262.34 4.00 1,126.84 End Dir :3665.9'MD,3396.84'TVD 3,680.20 8.00 326.16 3,411.00 3,113.00 937,56 -628.67 2,575,721.88 240,261.23 0.00 1,128.83 CARYA 2-6-1 3,700.00 8.00 326.16 3,430.60 3,132.60 939.85 -630.20 2,575,724.17 240,259.69 0.00 1,131.58 3,800.00 8.00 326.16 3,529.63 3,231.63 951.41 -637.95 2,575,735.73 240,251.94 0.00 1,145.50 3,900.00 8.00 326.16 3,628.66 3,330.66 962.97 -645.70 2,575,747.29 240,244.19 0.00 1,159.42 4,000.00 8.00 326.16 3,727.69 3,429.69 974.53 -653.45 2,575,758.85 240,236.44 0.00 1,173.33 4,100.00 8.00 326.16 3,826.71 3,528.71 986.09 -661.20 2,575,770.41 240,228.69 0.00 1,187.25 4,200.00 8.00 326.16 3,925.74 3,627.74 997.65 -668.95 2,575,781.97 240,220.94 0.00 1,201.17 4,300.00 8.00 326.16 4,024.77 3,726.77 1,009.21 -676.70 2,575,793.53 240,213.19 0.00 1,215.09 4,400.00 8.00 326.16 4,123.79 3,825.79 1,020.77 -684.45 2,575,805.09 240,205.44 0.00 1,229.00 4,500.00 8.00 326.16 4,222.82 3,924.82 1,032.33 -692.20 2,575,816.64 240,197.69 0.00 1,242.92 4,600.00 8.00 326.16 4,321.85 4,023.85 1,043.89 -699.95 2,575,828.20 240,189.94 0.00 1,256.84 4,700.00 8.00 326.16 4,420.87 4,122.87 1,055.45 -707.70 2,575,839.76 240,182.19 0.00 1,270.75 4,779.89 8.00 326.16 4,499.99 4,201.99 1,064.68 -713.90 2,575,849.00 240,176.00 0.00 1,281.87 Total Depth:4779.9'MD,4500'TVD-5 1/2" 4,779.90 8.00 326.16 4,500.00 4,202.00 1,064.69 -713.90 2,575,849.00 240,176.00 0.00 1,281.87 NCU 14 TGT BHL rev1 Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +N/-S +EI-W Northing Easting -Shape (0) (0) (ft) (ft) (ft) (ft) (ft) NCU 14 TGT BHL revl 0.00 0.00 4,500.00 1,064.69 -713.90 2,575,849.00 240,176.00 -plan hits target center -Circle(radius 150.00) 1/9/2013 8:39:07AM Page 4 COMPASS 2003.16 Build 73 Halliburton Company HALLI URTO1%J Standard Proposal Report Database: .AK Compass PRD.16 Local Co-ordinate Reference: Well Plan NCU#14 Company: Aurora Gas, LLC TVD Reference: NCU 14 plan @ 298.00ft(KB+GL) Project: Cook Inlet MD Reference: NCU 14 plan @ 298.00ft(KB+GL) Site: Nicolai Creek Unit North Reference: Grid Well: Plan NCU#14 Survey Calculation Method: Minimum Curvature Wellbore: NCU 14 Design: NCU 14 WP3.0 Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (") (") 4,779.89 4,499.99 5 1/2" 5-1/2 7-7/8 700.00 700.00 9 5/8" 9-5/8 12-1/4 Formations Measured Vertical Vertical Dip Depth Depth Depth SS Dip Direction (ft) (ft) ft Name Lithology (°) (') 1,624.09 1,588.00 CARYA 2-1 0.00 1,909.29 1,835.00 CARYA 2-1-1 0.00 610.00 610.00 Beluga Sands 0.00 2,577.84 2,414.00 CARYA 2-3-3 0.00 2,475.07 2,325.00 CARYA 2-2-2 0.00 2,289.17 2,164.00 CARYA 2-2-1 0.00 2,908.07 2,700.00 CARYA 2-4-2 0.00 3,680.20 3,411.00 CARYA 2-6-1 0.00 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N/-S +E/-W (ft) (ft) (ft) (ft) Comment 750.00 750.00 0.00 0.00 Start Dir 1.5°7100':750'MD,750'TVD 900.00 899.96 2.45 -1.64 Start Dir 3.5°/100':900'MD,899.96'TVD 1,010.00 1,009.65 9.10 -6.10 Start Dir 4°/100': 1010'MD, 1009.65'TVD 1,607.42 1,573.56 161.72 -108.43 End Dir : 1607.42'MD, 1573.56'TVD 3,115.99 2,880.07 788.13 -528.47 Start Dir 4°/100':3115.99'MD,2880.07'TVD 3,665.90 3,396.84 935.91 -627.56 End Dir :3665.9'MD,3396.84'TVD 4,779.89 4,499.99 1,064.68 -713.90 Total Depth:4779.9'MD,4500'TVD 1/9/2013 8:39:07AM Page 5 COMPASS 2003.16 Build 73 N m t• �5 ▪ a� • N • C • L 4 tiiv a pia U)d D N C O N i C N d Ni N U - O- w d a y H o a• � °V W o m o N U b o a� Z -- d' ;n 'd o N = N y N ZN C f.'s,' c O d, o D a. tc O o N �YY� C a an � /�11 C O W J i., - W • Z y p a J a eau W ay °= � m� o w 0 ♦� lift ]• •v, Z. • Y O• r a cp> n v n ° u rte',/ O y�� Cl = o an d' ti Q . • 5 a) * n. 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Ir i ri r1riii ' ii1ri i 1 , 11 [ III I rI , rr - a m co O v co C i�-' 'el :r C '� 0 co _ _ CC (u{/09 )JoloeJ uoiluedag Q U Davies, Stephen F (DOA) From: Ed Jones [jejones@aurorapower.com] Sent: Wednesday, January 09, 2013 11:54 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Bettis, Patricia K(DOA); gpollock@aurorapower.com Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Attachments: NCU 14 WP3 0 report draft.pdf Steve, As per my previous email, the coordinate system was changed to feet from meters, and the well track was modified slightly. Please see the attached directional plan—on it there are two fairly minor inconsistencies with the Form 10-401. previously submitted: the MD under this directional plan is 4779.9' vs. 4679' on the form (same TVD), and the top of the producing horizon (main objective, the Carya 2-4.2 sand)will have a vertical departure of 891' from the surface location vs. 806' from the surface location shown on the 10-401. Should I go ahead and submit a new 10-401 for the well? 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: Tuesday, January 08, 2013 2:54 PM To: 'Davies, Stephen F (DOA)' Cc: 'Schwartz, Guy L (DOA)'; 'Bettis, Patricia K (DOA)'; 'gpollock@aurorapower.com' Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Steve, Thanks again for catching the inconsistencies. I had only noted that the coordinates for the surface and BHL were correct. However, in looking closer, the coordinates used were in metric instead of in feet,giving us a much longer departure and deeper MD. I have requested that this be corrected in the directional plan, and I will get you a copy as soon as I receive (and review) the corrected plan. 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: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, January 07, 2013 7:49 PM To: Ed Jones Cc: Schwartz, Guy L (DOA); Bettis, Patricia K (DOA); gpollock@aurorapower.com Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Ed, Thanks for the certified mail return receipts and the directional data for NCU 14. I notice on the NCU 14 Permit to Drill application that the TD of the well is listed as 4679' measured depth/4500' true vertical depth, but in the directional survey the TD of the well is listed as 6713' MD/4500'TVD. The vertical section for the well as described on the Permit to Drill application is 1282', but on the directional survey the vertical section is listed as 4206'. Having proper bottom hole depth and coordinate information is critical for NCU 14 because of nearby property lines. I'll need this information to finish my review of the Permit to Drill application and to publish the Notice of Public Hearing for the spacing exception. Thanks, Steve Davies AOGCC From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Thursday, January 03, 2013 7:14 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Bettis, Patricia K (DOA); Qpollock@aurorapower.com Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Steve, Here is the directional plan, so this is all you need to get the NCU Spacing Exception Notice of Hearing published, correct? If not, please let me know. 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: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, December 27, 2012 5:07 PM To: Ed Jones Cc: Robert; Schwartz, Guy L (DOA); Bettis, Patricia K (DOA) Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Ed, I'll wait to the publish the Notice of Public Hearing for the NCU spacing exception until I get all copies of the certified mail return receipts and the directional survey info. Best Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 2 Fax: 907-276-7542 From: Robert [mailto:rpledger@hotmail.com] Sent: Thursday, December 27, 2012 2:02 PM To: Davies, Stephen F (DOA) Subject: Re: NCU 14 Permit to Drill Application: Need Additional Information Got Steve's directions. I will work on it and get over to show it next year! Sent from my iPhone On Dec 27, 2012, at 5:00 PM, "Davies, Stephen F (DOA)" <steve.davies@alaska.gov> wrote: Ed, The proposed directional survey that Aurora submits must be the final version because it will become part of the approved permit to drill. If the directional survey program is changed at a later date, a Sundry Application will be required. Thanks, Steve Davies AOGCC From: Ed Jones [mailto:jejones@auroragower.com] Sent: Thursday, December 27, 2012 1:48 PM To: Davies, Stephen F (DOA) Cc: 'Robert Pledger' Subject: RE: NCU 14 Permit to Drill Application: Need Additional Information Steve, I have not had a directional company work one up yet, but I will ask Robert Pledger to work one up on the workstation. 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: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, December 27, 2012 4:36 PM To: Ed Jones Subject: NCU 14 Permit to Drill Application: Need Additional Information Ed, I'm reviewing Aurora's Permit to Drill application for NCU 14, and I can't find the proposed directional survey for the well. Could you please provide a copy? 3 Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.2805 /Virus Database: 2637/5990 - Release Date: 12/27/12 No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.2805 /Virus Database: 2637/5990 - Release Date: 12/27/12 No virus found in this message. Checked by AVG - www.avg.com Version: 2013.0.2805 /Virus Database: 2637/6017 - Release Date: 01/07/13 4 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 7 WELL NAME Ad_ ( 0/ PTD# 9-----/2— l ? -3' G/ Development Service Exploratory Strati raphic Test Non-Conventional Well A ,y,L,l�, y - k_ FIELD: AGC%/�- Cii��' l /� POOL: 4644: (-11--C-2-_e!---/iv-Liki_ 6-a-----V 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 approve Sect to full compliance with 20 AAC EXCEPTION 25.055. Approval to roduc /inject is contingent upon issuance of aonservation _ o approving a spacing exception. Iu- C�c j L /---(.7--, 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 err/// from where samples are first caught and 10' sample inte als through target zones. (`/ 5.� -4n"rc -,,,,i -,a. ,i Non-Conventional Please note the following special condition of this permit <3 Well ; production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 0 Q) 0 a) 0- u) N co a) O `o m • a) )) c Q To u) 0 a a Cr) ca c o a a O n cn 4 II QoC a 0 U 8 O m p N a V) 41 a y m 2 o a E 0 con 3 o r o = a 0 o c 3 ,n '7 .- ui Q o L of o_ D 3 E 0 0 D o o coo 3 `C) m 0 a) o E 0 c - ca 0 ~ o L o o = c m L 0 CO 00 3 0 00` CO m = cco N m 0 -0 CC) N M L > € L E >o c1 = c CO m I > C - o m O = m p p "C co m - N c o 3 y N o m .N m. 3 m - a o E06 °° 3 N• c0 0- 0 o a o d. Q m E c E o E a> iTs Q c v 0) o0 • 3 m a 0 0 .° (0 r0 a) U U Y 60i Zr) a- O. 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CO OO N M V V7 O CO 00)A O N NN M V Lc:', CO r N O O CN M M M O COr CO O U a 1- M M CO a) c N Oa) o O C G 0 C m (N (0 N O N U O fI W A 0 C 0 ( CO.N `4 CL N a. •L a) E -I N- • E d m C7 EO� C aIL a 0 U CWaE C) -1 C a a ` a (3 a) u)• as w 'v'Vell History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. Aurora Gas LLC Nicolai Creek #14 973' FSL, 624 FWL SEC 18; T 11N; R 21W Seward Meridian, Alaska Approved by: George Pollock Compiled by: John Lundy Harry E. Bleys Distribution: 9/05/2013 T.D. Date: 17 July 2013 Nicolai Creek #14 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 ...........................................................13 3.3. TRIP GASES ..............................................................................................................13 4. DRILLING DATA ...........................................................................................................................................14 4.1. DAILY ACTIVITY SUMMARY .....................................................................................14 4.2. SURVEY RECORD ....................................................................................................16 4.3. MUD RECORD ...........................................................................................................21 4.4. BIT RECORD .............................................................................................................22 4.5. DRILLING PROGRESS CHART .................................................................................23 Enclosures: 2”/100’ Formation Log (MD/TVD) 2”/100’ LWD Combo Log (MD/TVD) 2”/100’ Gas Ratio Log (MD/TVD) 2”/100’ Drilling Dynamics (MD/TVD) Final Data CD Nicolai Creek #14 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 2 Data cable pulled loose during trip Pump stroke counters Externally Mounted Magnetic Proximity Sensor 1 Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 1 Drill string torque N/A Top drive rotary (RPM) N/A Standpipe Pressure Hydraulic Pressure Cell 1 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From Flow Paddle 0 Pit volumes Sonic Pit Level Probes 1 Calibration 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 21 Allen Williams 2 Harry Bleys 13 21 Travis Smith 4 Ben Handley 5 15 Britten Adams 2 16 Nicolai Creek #14 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 #14 Field: Nicolai Creek County: Kenai Peninsula Borough Region West side of Cook Inlet State: Alaska Company Representatives: Jim Brown, Adam Johnson, Jerry Otto Location: 973' FSL, 624 FWL SEC 18; T 11N; R 21W Seward Meridian, Alaska Classification: Exploratory API #: 50-283-20172-00-00 Permit #: 2121930 Rig Name / Type: Aurora #A3, AWS-1/SINGLE Elevation: Ground, RKB 294' RKB, 282' GL Primary Targets: Beluga/Tyonek Spud Date: July 3 2013 Total Depth 4830’ Total Depth Formation: Tyonek Total Depth Date: July 17, 2013 MWD Company: Sperry Directional Drilling: Sperry Drilling Fluids Company: Halliburton Logging Companies: Halliburton 2.3. HOLE DATA Nicolai Creek #14 Maximum Depth Shoe Depth F.I.T. Hole Section MD SSTVD T.D. Formation Mud Weight (ppg) Deviation (oinc) Casing MD SSTVD EMW Driven 106’ +188’ Recent N/A 0 13 ” 106 +183 N/A 12¼” 710’ -1456.4’ Beluga 8.2 5.14 9 ” 700’ -405.98’ 16.0 8 1/2” 4830’ -4261.2’ Tyonek 9.8 4.58 NONE N/A N/A N/A Nicolai Creek #14 4 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW CLAYSTONE ( 106' - 160' ) = Light gray to medium gray color; soft to curdy to malleable consistency; irregular fracture; with slumped to rounded cuttings habit; strong adhesive property with equally strong cohesive property; constantly reduces in rinsing; loose unconsolidated sands, coal, siltstone found entrained in claystone beds; smooth texture with dull to waxy luster; thin to thick structure. SAND, SANDSTONE, CONGLOMERATE SAND, AND CONGLOMERATES ( 160' - 250' ) = Loose unconsolidated sands from upper fine to upper coarse to 2 mm to 6 mm of conglomerate sands; dominantly quartz of opaque gray white to translucent with dark green inclusions to reddish bright orange color; poorly sorted, subangular to angular and sub spheroidal; slightly frosted in part; trace to 10% very soft light to medium gray hydrophilic clay/ siltstone; no oil indicators. SAND, SANDSTONE, CONGLOMERATE SAND, AND CONGLOMERATES ( 250' - 320' ) = Overall medium gray; firm to disaggregated loose friable sand; poorly sorted; medium upper to medium lower, coarse and fine lower; common to abundant 3 to 4 mm pebble fragments; translucent smokey to white and clear colorless quartz pre- dominate; 30 to 40% medium to light gray mineral/lithics; common to trace brownish orange, red, green and black lithics and clastic coal fines; trace thin brittle white ash fragments with included mica; individual grains slightly frosted may be due to cement overgrowth; good visible porosity; no matrix material noted; trace to 10% of sample is soft hydrophilic clay/ siltstone; trace calcareous; no oil indicators. SAND, SANDSTONE, CONGLOMERATE SAND, AND CONGLOMERATES ( 320' - 420' ) = Overall medium gray; firm to disaggregated loose friable sand; poorly sorted; medium upper to medium lower, coarse and fine lower; common to abundant 3 to 4 mm pebble fragments; translucent smokey to white and clear colorless quartz pre- dominate; 20 to 30% medium to light gray mineral/lithics; common to trace reddish brown, red, green rose and black; trace clastic coal fines; trace thin brittle white ash fragments with included mica; individual grains slightly frosted may be due to cement overgrowth; good visible porosity; no matrix material noted; clay becoming more common; trace calcareous; no oil indicators. SAND, SANDSTONE, CONGLOMERATE SAND, AND CONGLOMERATES ( 420' - 510' ) = Overall medium gray; friable loose disaggregated sand; medium upper to coarse lower, medium lower and fine with common 2 to 4 mm pebble fragments; sub-angular to angular and sub-spheroidal; translucent smokey and white quartz/ volcanics; poorly sorted; dominantly poor to low sphericity; textural maturity very young or low; traces of mica, black carbon lithic fragments, small clastic coal fragments, yellow, brown, green, and rose colored quartz clasts, with green green-stone possibly chlorite; no fluorescence, no hydrocarbon indicators and gas background very low. SAND, SANDSTONE, COMGLOMERATES ( 510' - 620' ) = Light gray to medium dark gray overall color; dominantly quartz in poorly sorted fine to upper coarse grain size with clasts of 2mm to 5mm of conglomerates of angular to heavy weathered unconsolidated sands; traces Nicolai Creek #14 5 of silts mica, chlorites, black carbon lithic fragments, feldspars, and quartz with colors of yellow, rose, to green inclusions and opaque quartz with bordering laminae of blue gray; no sample fluorescence or streaming fluorescence; no carbon indicators; gas background remains very low. TUFFACEOUS SILTSTONE / CLAYSTONE ( 620' - 710' ) = Light gray with a very slight greenish blue secondary hue; soft to slightly firm in samples; carbonaceous; common to abundant thin to micro-thin carbonaceous lamina/inclusions; hydrophilic; easily washes away in sample preparation; slightly adhesive/cohesive; tuffaceous; contains abundant silt size sharp angular volcanics shards; locally grades to thin fine to very fine grain silty matrix supported tuffaceous sand stone; occasional thin medium lower to fine upper sands similar to those seen in overlying material; non calcareous; no oil indicators. TUFFACEOUS CLAYSTONE / SILTSTONE ( 716' - 800' ) = Medium light to medium gray with a slight brownish secondary hue in part; soft to very slightly firm; clumpy/clayey cuttings; hydrophilic silty to slightly sandy; slightly adhesive/cohesive; easily lost in sample preparation; common thin to microthin carbonaceous lamina and coal fines; trace very thin coal lignite interbeds; trace soft white slightly calcareous ash/tuff; slightly calcareous overall; no oil indicators. TUFFACEOUS SILTSTONE / SANDSTONE ( 800' - 900' ) = Medium light to medium gray; with a slight brownish secondary hue; soft to disaggregated; hydrophilic tuffaceous sandy siltstone grading to occasional thin to moderate tuffaceous silty sandstone; very fine upper to fine lower grain; predominantly translucent white to smokey quartz/volcanics; trace darker grains; slightly adhesive; moderately cohesive; easily washes away in mud circulation/sample preparation; trace to abundant thin to microthin carbonaceous lamina and inclusions; local trace soft white fluffy ash; slightly calcareous; no oil indicators. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILTSTONE / SAND AND TUFFACEOUS SANDSTONE ( 900' - 1055' ) = Claystone color is medium gray to dark gray with blue and green hues; dominantly soft curdy balled tuffaceous claystone entrained with very fine loose unconsolidated sands and tuffaceous sandstone; claystone is malleable with irregular fracture and rounded balled cuttings; tuffaceous claystone is smooth to rough with volcanic devitrified glass and volcanic tuff: entrained in tuffaceous claystone is tuffaceous siltstone with medium gray to dark gray with dark brown hues; entrained loose sands have lower to upper fine grain size with tuffaceous sandstone are fair to good sorted and dominantly quartz with chlorite, feldspar, dark black carbon lithics and thin stringers of coal; coal is black shiny vitreous to black matte with blocky to thin rectangular cuttings overall tuffaceous claystone retains a strong adhesive and cohesive properties; hydrophilic properties are reducing; gas background remains low and hydrocarbon indicators as sample fluorescence is not seen as yet. TUFFACEOUS CLAYSTONE ( 1055' - 1115' ) = Medium gray to dark gray with green and blue hues; soft curdy to balled cuttings of a malleable tenacity with irregular fracture and rounded soft cuttings; smooth to slightly rough with volcanic tuff and devitrified glass shards through out; entrained with black lithic carbonaceous material, unconsolidated loose sands, tuffaceous sandstone, and tuffaceous siltstone; gas low. Nicolai Creek #14 6 SAND/TUFFACEOUS SANDSTONE (1115' - - 1190' ) = Dominantly quartz of gray white, to light yellow color with clear to blue translucent; well sorted of lower fine to upper fine grain size; subangular to rounded; fair to good sphericity; tuffaceous sandstone has a volcanic tuff with devitrified glass shards through out; weakly indurated with fair visual porosity; shears easily both loose unconsolidated sands and tuffaceous sandstones are mature texturally speaking; no hydrocarbon indicators; gas background remains low. TUFFACEOUS SILTSTONE / SANDSTONE (1190' 1310' ) = Medium light to medium gray; with a slight brownish secondary hue; soft to disaggregated may be friable in part; sample collected as soft masses imbedded with sand; material grades from tuffaceous sand to silt and claystone with occasional thin lignitic coals; moderate out-gassing in larger fragments; included sand is fine upper to very fine upper with scattered medium lower grains sub-angular to sub- spheroidal and angular; translucent white to clear and smokey quartz/volcanics; abundant medium to light gray and black mafic mineral/volcanics; trace varicolored mineral grains in some samples; carbonaceous; throughout; common very thin to micro- thin carbonaceous lamina; trace calcite; overall non to trace calcareous; no oil indicators. COAL ( 1320' - 1400' ) = Very dark brownish gray to black; firm to slightly hard brittle; irregular blocky to tabular fragments; lignitic; no mature coal characteristics; silty to slightly sandy moderate out-gassing when fresh; occurs as moderate to thin interbeds. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILT- STONE ( 1310' - 1400' ) = Medium to medium light gray with a slight brownish secondary hue; trace intact cuttings have a pronounced yellowish brown cast; soft to slightly firm; clayey to silty texture; earthy to silky luster; generally sandy; common to abundant fine lower to very fine upper angular clear to smokey quartz/volcanics shards; hydrophilic; slightly to moderately adhesive/cohesive; easily soluablized in mud system and sample preparation; collected as soft masses coated with loose sand; carbonaceous in part; occasional microthin carbonaceous lamina; trace thin coals; non calcareous; no oil indicators. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILT- STONE ( 1400' - 1600' ) = Medium to medium light gray with a slight brownish secondary hue; clayey to silty and slightly sandy; grades to thin silty tuffaceous sandstone; earthy to gritty; common to abundant fine lower to very fine lower angular clear to trans lucent smokey quartz/volcanics shards; hydrophilic; slightly to moderately adhesive/cohesive; easily soluablized in mud system and sample preparation; collected as soft masses coated with loose sand; carbonaceous in part; occasional microthin carbonaceous lamina; interbedded with thin to moderate coals abundant very thin carbonaceous intervals; non calcareous; no oil indicators. COAL ( 1420' - 1650' ) = Very dark brownish gray to black; slightly hard to hard brittle; irregular blocky to tabular coarsely fissile fragments; poorly developed lignite; no mature coal characteristics noted; silty/sandy throughout; trace to moderate out gassing does not persist. Nicolai Creek #14 7 TUFFACEOUS CLAYSTONE ( 1600' - 1730' ) = Medium gray to dark gray with blue and green hues; soft to balled malleable consistency; soft tenacity; irregular fracture with smooth to rough texture due to volcanic tuff and devitrified glass throughout; loose unconsolidated sands, from upper fine to conglomerates range through this section with the larger 2 mm to 4 mm conglomerates at the bottom of this sequence; hydrophilic properties still reducing as adhesive an cohesive properties are increasing; clay is getting harder to wet and wash away; no hydrocarbon indicators; no sample fluorescence; gas back ground low. COAL ( 1700' - 1760' ) = Dark brown to speckled dark brown and black to shiny vitreous black color; hard brittle tenacity; planar to splintery fracture; thinly rectangular to blocky cuttings; smooth to rough due to thin laminae composing coal clasts protruding and creating a rough surface texture; matte black to shiny vitreous luster; thin/ thicker structure; no visible degassing; slight gas spikes indicate where coal in thin stringers is cut. TUFFACEOUS CLAYSTONE AND SAND ( 1760' - - 1835' ) = Dark gray color with soft to malleable consistency; irregular fracture with rounded to thinly coated cuttings; smooth to rough texture with volcanic tuff and devitrified glass; dull luster; thin structured; low gas background. TUFFACEOUS CLAYSTONE ( 1835' - 1905' ) = Medium gray to dark gray with green hues; soft to malleable consistency; irregular fracture with rounded slumped cuttings; slight rough texture due to volcanic tuff and devitrified glass through out claystone; loose sands from upper fine to lower medium grain size; dominantly quartz with black carbonaceous lithic material, black carbon clasts, fallen from above; slightly hydrophilic, and moderately cohesive an adhesive; gas background remains low. SAND ( 1905' - 1980' ) = Opaque grayish white to clear to translucent yellow; well sorted with subangular to round; fair to high sphericity; overall mature textural maturity; dominantly quartz with black lithic fragments, feldspar some trace calcite and mica with green stone possibly chlorite; sands are held entrained within the tuffaceous clays; sands are interbedded with clays and tuffaceous siltstones and thin stringers of coal; no hydrocarbon indicators; gas background is slowly rising. SAND ( 1980' - 2070' ) = Fair sorted; dominantly quartz of white opaque to dirty grayish blue with clear to yellow translucent color; subangular to sub rounded to round; fair sphericity; upper fine to lower medium grain size; chlorite, mica, feldspar, calcite are found in loose unconsolidated sands; trace tuffaceous siltstone and trace coal clasts found in sands; no sample fluorescence or cut fluorescence; no hydrocarbon indicators. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILT- STONE ( 2070' - 2140' ) = Medium to medium light gray with a brownish secondary hue; clayey to silty; slightly sandy; grades to silty tuffaceous sandstone; earthy to gritty luster; included sand ranges from fine lower to very fine upper with scattered upper fine and medium grains; hydrophilic; slightly cohesive; non to slightly adhesive; easily lost in sample preparation collected as soft masses coated with loose sand; common microthin lamina; occasional very thin carbonaceous intervals; non to slightly calcareous; no oil indicators. Nicolai Creek #14 8 COAL ( 2140' - 2160' ) = Very dark brownish gray to black; firm to slightly hard brittle; irregular to tabular fragments; lignitic to sub bituminous; may be clastic in origin appears more mature than coal from local beds; no out gassing noted; common soft white ash. CONGLOMERATIC / TUFFACEOUS SANDSTONE ( 2170' - 2290' ) = Medium to medium light gray; slight greenish secondary hue soft to disaggregated or unconsolidated loose sand; locally dominant ash matrix tuffaceous sandstone; medium lower to medium upper, fine upper and coarse lower grain; scattered 2 to 4mm pebbles and pebble fragments as depth increases; sub- angular to angular and sub-spheroidal grains; predominantly translucent white to clear and smokey quartz/ volcanics; common to abundant light to medium gray lithic/mineral grains; common dark gray to black mafic mineral/lithics and clastic coal grains; trace blue gray green and brown grains; good visible porosity in part; about 50% of fragments show abundant soft white hydrophilic ash/clay matrix. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILT- STONE ( 2290' - 2360' ) = Medium light gray-brown; clayey to silty texture; slightly to very sandy; grading to silty tuffaceous sandstone; earthy to clayey and gritty luster; contains similar sand to that seen above; scattered pebbles and pebble fragments; hydrophilic; slightly cohesive; non to slightly adhesive; easily lost in sample preparation collected as soft masses coated with loose sand; trace microthin lamina; occasional moderate beds of lignite; coal has trace persistent out gassing; no mature coal features; non to trace calcareous; no oil indicators. CONGLOMERATIC / TUFFACEOUS SANDSTONE ( 2360' - 2510' ) = Medium to medium light gray; slight greenish secondary hue soft to disaggregated or unconsolidated loose sand; locally dominant ash matrix tuffaceous sandstone; medium lower to medium upper, fine upper and coarse lower grain; scattered 2 to 4mm pebbles and pebble fragments as depth increases; sub- angular to angular and sub-spheroidal grains; predominantly translucent white to clear and smokey quartz/ volcanics; common to abundant light to medium gray lithic/mineral grains; common dark gray to black mafic mineral/lithics and clastic coal grains; trace blue gray green and brown grains; good visible porosity in part; about 50% of fragments show abundant soft white hydrophilic ash/clay matrix; interbedded with moderate beds of tuffaceous claystone as previously described; material grades to conglomerate/conglomeratic sand with increasing depth; conglomerate from 2480' to 2510' washes clean and may have good porosity; trace calcareous; no oil indicators. SAND/CONGLOMERATIC SAND ( 2510' - 2585' ) = Very fine to lower fine grains to larger grains of upper very coarse to conglomeratic sands of 2mm and larger; trace tuffaceous sandstone with coal clasts most likely fallen down hole; loose unconsolidated sand are poorly sorted of dominantly quartz in a dirty grayish white opaque to translucent clear grains with trace calcite, mica, chlorite, black lithic fragments; tuffaceous claystone of volcanic ash, tuff and devitrified glass carries all mentioned minerals due to bit action; no sample fluorescence or cut; no hydrocarbon indicators. Nicolai Creek #14 9 TUFFACEOUS CLAYSTONE / SAND ( 2585' - 2650' ) = Soft to curdy to malleable in rounded clasts with sand and trace minerals entrained; black coal fragment and loose unconsolidated sands; calcite and mica with chlorites are found in the tuffaceous claystone; claystone is composed of volcanic ash, tuff and devitrified glass is mildly hydrophilic an strongly adhesive and cohesive; no sample fluorescence or cut fluorescence no hydrocarbon indicators; gas is low. SAND / CONGLOMERATES ( 2650' - 2755' ) = Grayish white to blue white opaque to translucent clear to trace yellow color; poorly sorted from upper fine to upper coarse grain size to conglomerates that increase lower in this sequence; 2 mm to 4 mm conglomerates of a sharp angular to subrounded with low sphericity; loose unconsolidated smaller grains are poorly sorted and subangular to rounded; low to fair sphericity; dominantly quartz throughout; visible etching on larger 3 mm pebbles; conglomerates slowly pinch out as this sequence continues; calcite, traces of mica, coal clasts, chlorite and feldspars in sample with claystones diminishing to trace; calcitic fluorescence found in two specks; no other sample fluorescence or cut fluorescence; gas remains low. SAND ( 2755' - 2810' ) = Loose sands of lower fine to upper medium to trace lower coarse grain size; grayish blue opaque to clear to translucent blue color; unconsolidated sands are quartz at 80% to 90% with calcite and abundant darker gray to black mineral and coal fines; trace to scattered very coarse to small pebble size black chert grains; generally matrix supported in hydrophilic ash/silt; locally grain supported; occasional thin to moderate coals and ash beds; no oil indicators. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILTSTONE ( 2810' - 2885' ) = Medium light gray-brown; clayey to silty texture; grading to silty tuffaceous sandstone; contains variable amounts of fine to medium sand; scattered coarse and pebble hydrophilic; slightly cohesive; moderately adhesive may be due to polymer; polymer material does not wash from sample or release sediments from clumps some loose sand and scattered coal fragments; scattered very thin coals; no oil indicators. SAND / TUFFACEOUS SANDSTONE ( 2880' - 3000' ) = Medium light gray with a slight brownish secondary hue; soft to disaggregated loose sand; friable; moderately well sorted; fine upper to fine lower; scattered medium upper and coarse; occasional 3 to 5mm pebble; sub- angular to sub-rounded and sub-spheroidal; trans lucent white to smokey and clear quartz/ volcanics predominate; trace to common medium to dark gray lithic/mineral grain trace blue- gray, green and brown mineral; trace black mafic mineral and coal fines material primarily grain supported; some grain support; common thin ash interbeds no oil indicators. TUFFACEOUS CLAYSTONE / TUFFACEOUS SILTSTONE ( 2885' - 2985' ) = Medium light gray-brown; clayey to silty texture; grading to silty tuffaceous sandstone; contains variable amounts of fine to medium sand; scattered coarse and pebble; hydrophilic; slightly cohesive; moderately adhesive may be due to polymer; polymer material does not wash from sample or release sediments from clumps some loose sand and scattered coal fragments; scattered very thin coals; trace soft white ash; slightly calcareous (may be due to caco3 additive); no oil indicator, Nicolai Creek #14 10 COAL ( 2980' - 3120' ) = Black to very dark brownish gray; firm to slightly hard; brittle; hackly; lignitic verging on sub-bituminous; angular irregular to tabular fragments; no conchoidal fracture or other mature coal character; very slight trace degassing does not persist; trace pebble fragments in 3110' sample; scattered thin clay interbeds. SAND ( 3120' - 3230' ) = Dominantly quartz at 80% to 90% with calcite, mica, feldspars, chlorites, and black carbon lithics entrained in loose disaggregated unconsolidated sand; poorly sorted; sub angular to rounded with low to fair sphericity; upper fine to very coarse with trace large 4mm pebbles enlarging to 6 mm with pebbles greatly increasing in quantity at the bottom of this sequence; conglomeritic sands laying through; no sample or cut fluorescence; gas remains low. SAND ( 3230' - 3285' ) = Dominantly quartz from grayish white to blue gray to dark gray quartz with black hues; quartz poorly sorted with lower fine to upper coarse grain size with trace pebbles of conglomerates of 2 mm size; sand and conglomeratic sand begin to pinch out at the bottom of this sequence with a increase of tuffaceous claystone; no hydrocarbon indicators. COAL ( 3295' - 3315' ) = Black to very dark brownish gray; firm to slightly hard; brittle; hackly; lignitic; no mature coal characteristics; angular to tabular fragments; trace de-gassing does not persist; trace coarse sand at base of the zone. SAND / SANDSTONE / CONGLOMERATE ( 3315' - 3430' ) = Medium light gray; salt and pepper appearance; sample consists of loose sand with traces of small hard well indurated sandstone fragments friable in part; fine upper to medium lower grain predominate; coarsens with increasing depth to coarse lower, medium upper, granule and fine upper with scattered small pebble fragments; angular to sub-angular in the smaller grain becoming sub-round to sub- angular in the coarser material; no sedimentary matrix seen; above 3390' where 20% white ash matrix tuffaceous sandstone was found; individual grains were translucent white to clear and slightly smokey quartz and abundant clear colorless volcanic glass shards; trace to common dark gray to black mafic mineral grains; trace blue- gray, green and brown mineral/lithics; trace black chert fragments and coal fines; trace calcareous; no oil indicators. COAL / CARBONACEOUS SHALE ( 3430' - 3470' ) = Very dark brownish gray to black; hard to very firm; hackly; brittle; lignitic to sub-bituminous; trace poor conchoidal fracture; softly/poorly fissile in part; thinly bedded/interbedded with associated sand; overlies sand complex similar to a above; sand is vertically sorted coarsening with depth; generally grain supported and well indurated; trace very fine upper to fine lower silty sandstone with good visible porosity; very slightly calcareous; no oil indicators. SAND / SANDSTONE / CONGLOMERATE ( 3525’ - 3670’ ) = medium light gray; salt in pepper appearance; sample consists of loose sand; friable; fine upper to medium lower, medium upper, coarse and granule; material coarsens with depth; trace 3mm pebble fragments; angular to subangular and sub-spheroidal; 10 to 20% soft to hard white ash supported sandstone; remainder of the sample is clean slightly frosted loose sand; translucent smokey and white quartz/volcanics predominate; common opaque gray and brown grains; abundant dark gray to black mafic mineral/volcanics and coal fines; trace green stained grains; scattered very hard dark green mineral (Mohr’s 8); trace soft white ash fragments; trace to common muscovite mica flakes; non to trace calcareous may be CaCO3 additive; no oil indicators. Nicolai Creek #14 11 SILTSTONE / CARBONACEOUS SHALE ( 3650’ - 3700’ ) = brown to brownish black; firm brittle; angular irregular to sub blocky fragments; sub bituminous; common conchoidal fracture; visible cleat on some fracture surfaces; note samples contaminated with :steelseal” mud additive looks like pyritic coal. SAND / SANDSTONE ( 3770’ - 3820’ ) = medium gray; salt & pepper appearance; loose disaggregated sand; subangular to angular and sub-spheroidal; moderately well sorted medium lower to fine upper and medium upper grain; predominantly translucent gray and white to clear and opaque gray quartz/volcanics; common medium to dark gray and gray-brown lithic/ mineral grains; trace black mafic mineral, brown, rose and orange grains and muscovite mica; interbedded with thin coal and sand; non to trace calcareous; no oil indicators. COAL ( 3730’ - 3750’ ) = black; hard; brittle; angular irregular to sub-blocky fragments; sub bituminous; common conchoidal fracture; visible cleat on some fracture surfaces; trace carbonaceous shale. SAND / SANDSTONE ( 3750’ - 3915’ ) = light to medium light gray; salt and pepper appearance; friable; well sorted; fine upper to medium lower and fine lower; angular to subangular; slightly frosted with cementation overgrowth; primarily translucent white and smokey quartz/volcanics; abundant clear colorless quartz/ volcanics; common medium and dark gray mineral lithic/mineral grains and coal fines; trace blue-gray gray, yellow, brown orange and rose; scattered green stained quartz; occasional ash matrix supported sandstone fragments; grades to conglomerate with increasing depth; slightly calcareous may be due to CaCO3 mud additive; no oil indicators. SAND / CONGLOMERATIC SAND ( 3915’ - 4015’ ) = dominantly quartz of angular to subrounded with poorly sorted lower fine to upper coarse grain size; conglomerate sands of 2 mm to 4 mm; sub rounded to round with visible etching; colors range from grayish white to blue gray opaque to translucent clear to yellow; ash tuff and devitrified glass is found in thinly bedded laminae of tuffaceous claystone found through out mixed with trace tuffaceous sandstone; through beds of loose unconsolidated sands are found calcite, chlorite, feldspars, trace mica and coal coming in thin stringers interbedded with the sands; gas background remains low; faint low very slow cut fluorescence with a few calcitic sample fluorescence. SAND / CONGLOMERATE ( 4035’ - 4110’ ) = dominantly quartz of dirty white to dark blue gray opaque to translucent clear to yellow color; upper fine to upper coarse to conglomerates of 2 mm to 5 mm grain size; angular to rounded; poorly sorted; poor to low sphericity; visible etching on the large pebble from 2mm to 5 mm; no sample fluorescence but streaming cut of slight yellow milky white color; the streaming was not intense started slowly and picked up speed with stirring from a pick; gas remains low. SAND / CONGLOMERATE SAND ( 4110’ - 4220’ ) = over light gray to dark gray with blue hues and translucent to yellow color; upper medium to conglomerate sand; poor sorting; subangular to rounded; fair sphericity; trace tuffaceous sandstone; moderate beds; vertically sorted coarsening downward; fine upper to medium lower, medium coarse and granule with scattered pebble fragments; loose disaggregated sand with occasional hard well indurated sandstone fragments; non to very slightly calcareous; NSOFC Nicolai Creek #14 12 SAND / SANDSTONE CONGLOMERATE ( 4220 - 4310’ ) = medium light to light gray; salt and pepper appearance; loose disaggregated sand with scattered hard well indurated silica cemented sandstone fragments and soft to hard tuffaceous sandstone grading to conglomeratic sand; moderately well to poorly sorted; fine lower to fine upper and medium lower coarsening with increasing depth; scattered to common coarse, granule and small pebble become common to 4250’; lower zone reverts to fine lower, fine upper and very fine hydrophilic tuffaceous sandstone; light gray to blue-gray and clear quartz predominate; common dark gray to black mineral/volcanics; trace varicolored grains; trace muscovite and phlogopite mica; 4270’ to 4290’ have trace very dim yellowish green sample fluorescence; very slight crush cut to murky yellow; slight irregular dull yellow residue ring cuts back to milky yellow; no odor or stain; very slightly calcareous. COAL ( 4300’ - 4350’ ) = black; hard to firm; brittle; angular irregular fragments; sub bituminous; common conchoidal fracture; common visible cleat; on fracture surfaces; trace carbonaceous shale; thinly interbedded with very fine to fine grain sands and clay/ siltstone. SAND / SANDSTONE CONGLOMERATE / CONGLOMERATE SAND ( 4350’ - 4470’ ) = medium gray; loose disaggregated sand with common tuffaceous sandstone fragments; scattered well indurated hard sandstone; grading to conglomeratic sand; poorly sorted; medium lower to fine upper, medium upper, coarse and granule; common to abundant small pebbles and fragments; locally abundant polymer flocculated ash/clay matrix; consists primarily of translucent gray and white quartz/volcanics; abundant clear quartz and dark gray to black mineral/volcanics trace black chert; locally abundant coal fines and larger coal fragments; no visible porosity noted in samples; non to slightly calcareous; no oil indicators. SAND / CONGLOMERATES ( 4470’ - 4530’ ) = translucent clear to yellow to grayish white to light gray with blue hues; upper medium to upper very coarse with 2 mm to 4 mm conglomerates throughout; sub angular to sub rounded to round; poorly sorted unconsolidated sands with fair to high sphericity; heavily worked high textural maturity; no sample or cut or crush fluorescence; gas back ground remains low; visible etching on larger pebbles. TUFFACEOUS CLAYSTONE ( 4530’ - 4590’ ) = medium gray to dark gray color; soft to malleable; volcanic ash, tuff, and devitrified glass through out claystone giving it a rough texture; irregular fracture; slumped rounded cuttings; dull to slight shiny luster due to devitrified glass; entrained in the clay is loose unconsolidated sands and trace conglomerates; no sample or cut but milky white crushed fluorescence. TUFFACEOUS CLAYSTONE ( 4590’ - 4630’ ) = dark gray color with volcanic ash, tuff and devitrified glass, and entrained loose unconsolidated sands from lower medium to upper very coarse with trace conglomerates; tuffaceous claystone is increasing in this lower sequence; tuffaceous claystone has irregular fracture; slightly rough texture; thin to thick structure; dull earthy to shiny luster with mild hydrophillic properties moderate cohesive and adhesiveness. TUFFACEOUS CLAYSTONE / SAND ( 4630’ - 4730’ ) = dark gray color; soft curdy malleable; irregular fracture; slightly rough texture; slight shiny due to devitrified glass plus volcanic ash and tuff; entrained with loose unconsolidated sands of upper fine to upper very coarse to conglomerates of 2mm to 5mm; thin stringer of coal with slight gas of 42u. Nicolai Creek #14 13 TUFFACEOUS CLAYSTONE / SAND ( 4730' - 4830' ) = light medium gray with volcanic ash, tuff, and devitrified; entrained with in tuffaceous claystone is loose unconsolidated sands and conglomerates with trace tuffaceous sandstone; poorly sorted through out with lower medium to upper coarse to conglomerate at 2 mm to 4 mm in grain size; dominantly quartz at 80 % to 90% with the remainder in mica, calcite, chlorite; trace brown carbonaceous shales, black coals and feldspars; subangular to rounded with etching visible on the larger pebbles; no sample or cut or crush fluorescence or residual ring. 3.2. SAMPLING PROGRAM AND DISTRIBUTION LEA #1 Set Type and Purpose Interval Frequency Distribution A Water washed and oven dried 106’R to 4830’ RKB 106-710-30s 710-4830-20s Aurora Energy LLC 333 West Seventh Ave. Anchorage, Alaska 99501-3572 B Water washed and oven dried 106’R to 4830’ RKB 106-710-30s 710-4830-20s Aurora Energy LLC 333 West Seventh Ave. Anchorage, Alaska 99501-3572 C Water washed and oven dried 106’R to 4830’ RKB 106-710-30s 710-4830-20s State of Alaska Via Hotshot “DRY” SAMPLE BOX INTERVALS: Sets A, B, and C: (106’- 4830’ A, 106’ – 4830 B, 106’ – 4830’ C). 3.3. TRIP GASES Depth TG C1 C2 C3 iC4 nC4 iC5 Nc5 1212 WT 35 7845 34 1642 WT 32 6602 2150 WT 40 9486 4474 WT 14 3147 tr 4730 WT 199 29693 69 4830 RT Lost 4830 RT 15 3691 14 Note: RT = Round Trip; WT = Wiper Trip Nicolai Creek #14 14 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 6/30/2013: Site visit - arrive on site, survey pad, and inspect mud-logging unit. 7/1/2013: Rigging Up 7/2/2013: Rigging Up 7/3/2013: Rigging Up 7/4/2013: Finished rigging up. Built 250 bbls of mud and tested lines. Tested all surface equipment. Picked up BHA and assembled while drilling down through conductor. Drilled to 113 ft. 7/5/2013: Drilled from 113 Ft. to 214 Ft. and worked on pumps and air boot between pits. Drilled to 306 Ft. and continued to build volume in pits. Continued Drilling to 516 Ft. and circulated mud. Stopped and commenced pulling out of hole to conductor. Pulled out of hole and performed wireline survey of hole and found the hole had a one degree deviation. Finished wireline survey and tripped back in hole to bottom at 516 Ft. 7/6/2013: Finished tripping in to 516 Ft. Continued to drill after circulated and conditioned mud. Drilled to 710 Ft. Circulated mud around, and pulled out of hole to eight inch collars. Tripped back in and continued to circulate and condition mud while monitoring well. Crew was waiting for tools to run. 7/7/2013: Finished tripping in to 516 Ft. Continued to drill after circulated and conditioned mud. Drilled to 710 Ft. Circulated mud around, and pulled out of hole to eight inch collars. Tripped back in and continued to circulate and condition mud while monitoring well. Crew was waiting for tools to run. 7/8/2013: Cleaned and serviced rig. Changed boot between pits. Nippled down stack at hydril, and cut casing prepared it and welded wellhead. At present nippling up BOP's. 7/9/2013: Completed nippling up and rigged up to test BOP's. Worked on rigging up gas buster and moved trip tank. Picked up directional tools and tripped in hole. Picked up the remaining BOP's as tripped down hole. Tagged cement at 611’. Drilled down and performed CIT test. At present circulating and swapping out mud. 7/10/2013: Finished swapping mud in pits to KCL EZ MUD DP. Drilled cement and performed casing pressure test. Continued drilling out cement and drilled new hole to 736 Ft. Performed Leak off pressure test. Continued to slide and rotary drill down hole. At present continuing to drill ahead. Max gas of 102 u. at 841 Ft. 7/11/2013: Rotary drilled and slid to 1209 ft. circulated bottoms up and commenced short trip to 706 ft. Tripped back in hole to 1117 ft. And circulated and monitored the well. Washed to bottom at 1209 ft., and continued to drill ahead. Circulated bottoms up at 1648ft. Tripped out to 1209 ft., and reamed back to bottom. At present drilling ahead. 7/12/2013: Drilled to 2150 ft. and circulated bottoms up. Hit tight spot and reamed back 45 joints. Picked up Swivel and reamed back to bottom. Pumped forty barrel sweep of walnut plug to clean hole, and continued to drill to 2654 ft. Stopped and circulated and pulled up several stands too wash And ream to bottom to clear hole. Drilled to 2672 ft. At present circulating and monitoring well. Max gas was 90 u at 2346 ft. Nicolai Creek #14 15 7/13/2013: Drilling from 2654 ft. to 3157 ft. circulated bottoms up and conditioned mud. Commenced a wiper trip pulling out 45 joints. Tripped back to bottom and reached a tight spot at 2660 ft. Pumped back out 500 ft and washed and reamed back to bottom. At present drilling down hole. Max gas 103u. @ 3113 ft. 7/14/2013: Washed and reamed to bottom at 3157 ft. Circulated bottoms up and monitored well. Commenced drilling to 3375' and pumped 30 bbl walnut sweep to clean hole out. Continued to drill to 3525 ft. Decision reached to pull out of hole for bit trip. At present near casing and hole surface. Max gas 71 u at 3303 Ft. 7/15/2013: Slowly pulled out of hole due to tight spots. Laid down and racked back pipe. Rigged up and tested BOP's. Finished BOP's and cleaned and serviced rig and worked on both pumps. Commenced picking up pipe and BHA with new Halliburton tri-cone bit, and tripping in hole slowly. Tested MWD signal and continued to trip in hole. At present at 1370 ft.. 7/16/2013: Tripped in hole to 3525 ft. and circulated bottoms/up twice. Once on bottom commenced drilling ahead. Continued to 4035 ft. and pulled out to do a short trip. Pulled out to 3600 ft. and began tripping back in hole. Washed and reamed Pumped out and washed and reamed back to bottom. At present at 3797 ft. Max gas was trip gas of 210 u at 3600 ft. 7/17/2013: Performed a short trip from 4129 ft. to 4035 ft. Circulated bottoms up and continued to drill to 4474 ft. and performed a short 7 stand trip and back circulated bottoms up. Continued to drill to 4730 ft. and called T.D. Circulated bottoms up and pumped a sweep around. Then commenced tripping out. Max gas 53 u. at 4321 ft. 7/18/2013: Drilled to 4730' and circulated bottoms up. Pumped a sweep and commenced to back ream to 4223'. Pumped a dry job and pulled out of hole to shoe. Stopped and serviced rig than tripped Back in hole. Found a tight spot at 3365'. Washed down 60' and ran in hole to 4600'. Washed to Bottom and drilled to 4830'. Circulated bottoms up and commenced tripping out of hole. 7/19/2013: Pulled out of hole to 3030 Ft. Tripped back in hole to 4830 Ft. Circulated bottoms up and pumped a sweep while working the pipe. Commenced pulling out of the hole and laid down MWD directional tools. Cleaned up and serviced the rig. Rigged up Halliburton Logging unit. Started running in hole with wire-line logging tools. Logging run #1 still running down hole at report time. 7/20/2013: Rigged down. Ni c o l a i C r e e k # 1 4 16 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 Ve r t i c a l Se c t i o n 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 ( - ) 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 35 9 . 0 0 0. 0 0 0. 0 0 N 0 . 0 0 E 0 . 0 0 N/A 74 4 . 1 9 0. 7 5 35 5 . 0 0 74 4 . 1 7 4. 2 7 -0 . 4 2 4. 8 5 0.10 76 2 . 0 0 0. 6 4 34 2 . 8 3 76 1 . 9 8 4. 4 6 -0 . 4 6 5. 0 6 1.03 79 2 . 0 0 1. 8 6 31 3 . 0 7 79 1 . 9 7 5. 1 0 -0 . 8 7 5. 5 6 4.46 85 3 . 0 0 5. 4 2 30 7 . 6 9 85 2 . 8 4 8. 7 9 -3 . 8 7 7. 9 9 5.86 88 7 . 0 0 5. 8 2 31 5 . 4 8 88 6 . 6 7 12 . 0 1 -6 . 3 5 10 . 2 0 2.53 91 6 . 0 0 6. 3 1 32 0 . 8 6 91 5 . 5 1 15 . 0 4 -8 . 3 9 12 . 4 9 2.59 95 0 . 0 0 6. 4 8 32 6 . 2 3 94 9 . 3 0 18 . 8 2 -1 0 . 6 3 15 . 5 3 1.82 98 1 . 0 0 6. 5 9 32 8 . 9 4 98 0 . 1 0 22 . 3 4 -1 2 . 5 2 18 . 5 1 1.06 10 1 3 . 0 0 6. 9 2 33 0 . 9 4 10 1 1 . 8 8 26 . 1 0 -1 4 . 4 0 21 . 7 6 1.26 10 4 4 . 0 0 8. 1 5 32 7 . 0 5 10 4 2 . 6 1 30 . 1 5 -1 6 . 5 0 25 . 2 4 4.30 10 7 6 . 0 0 9. 5 5 32 4 . 7 7 10 7 4 . 2 3 35 . 0 7 -1 9 . 2 7 29 . 3 1 4.49 11 0 7 . 0 0 10 . 5 2 32 3 . 8 7 11 0 4 . 7 5 40 . 4 7 -2 2 . 4 2 33 . 7 0 3.19 11 3 9 . 0 0 11 . 8 3 32 5 . 0 7 11 3 6 . 1 5 46 . 6 7 -2 6 . 0 2 38 . 7 5 4.16 11 7 0 . 0 0 12 . 9 6 32 5 . 1 1 11 6 6 . 4 2 53 . 3 3 -2 9 . 8 3 44 . 2 0 3.65 11 9 9 . 0 0 13 . 6 9 32 4 . 1 4 11 9 4 . 6 4 60 . 0 1 -3 3 . 7 0 49 . 6 5 2.62 12 3 1 . 0 0 13 . 9 3 32 5 . 2 8 12 2 5 . 7 2 67 . 6 4 -3 8 . 1 1 55 . 8 9 1.14 12 6 2 . 0 0 14 . 1 7 32 7 . 5 2 12 5 5 . 7 9 75 . 1 7 -4 2 . 2 8 62 . 1 6 1.93 12 9 3 . 0 0 14 . 8 2 32 6 . 1 5 12 8 5 . 8 0 82 . 9 3 -4 6 . 5 2 68 . 6 5 2.35 13 2 5 . 0 0 16 . 0 3 32 5 . 8 3 13 1 6 . 6 5 91 . 4 4 -5 1 . 2 8 75 . 7 0 3.80 13 5 6 . 0 0 17 . 3 6 32 4 . 4 5 13 4 6 . 3 4 10 0 . 3 4 -5 6 . 3 8 83 . 0 1 4.47 13 8 8 . 0 0 18 . 9 5 32 4 . 8 3 13 7 6 . 7 5 11 0 . 3 1 -6 2 . 1 5 91 . 1 4 5.00 14 1 9 . 0 0 20 . 3 1 32 4 . 7 9 14 0 5 . 9 5 12 0 . 7 2 -6 8 . 1 5 99 . 6 5 4.38 14 5 1 . 0 0 21 . 9 8 32 5 . 9 4 14 3 5 . 7 9 13 2 . 2 6 -7 4 . 7 0 10 9 . 1 5 5.38 Ni c o l a i C r e e k # 1 4 17 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 Ve r t i c a l Se c t i o n 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 ( - ) 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 ) 14 8 2 . 0 0 23 . 6 7 32 8 . 3 3 14 6 4 . 3 6 14 4 . 2 8 -8 1 . 2 2 11 9 . 2 5 6.22 15 1 3 . 0 0 25 . 2 7 32 8 . 3 5 14 9 2 . 5 8 15 7 . 1 1 -8 7 . 9 6 13 0 . 1 8 5.15 15 4 5 . 0 0 27 . 0 8 32 8 . 4 7 15 2 1 . 2 9 17 1 . 2 2 -9 5 . 3 5 14 2 . 2 1 5.66 15 7 6 . 0 0 28 . 3 6 32 9 . 0 3 15 4 8 . 7 4 18 5 . 6 2 -1 0 2 . 8 3 15 4 . 5 4 4.21 16 0 3 . 0 0 29 . 1 1 33 0 . 6 3 15 7 2 . 4 1 19 8 . 5 7 -1 0 9 . 3 5 16 5 . 7 6 3.97 16 4 0 . 0 0 29 . 1 8 33 0 . 8 9 16 0 4 . 7 3 21 6 . 5 4 -1 1 8 . 1 5 18 1 . 4 8 0.38 16 7 2 . 0 0 28 . 9 9 33 0 . 2 2 16 3 2 . 6 9 23 2 . 0 4 -1 2 5 . 8 0 19 5 . 0 3 1.17 17 0 4 . 0 0 29 . 6 1 32 9 . 4 0 16 6 0 . 6 0 24 7 . 6 7 -1 3 3 . 6 8 20 8 . 5 6 2.30 17 3 5 . 0 0 29 . 5 0 32 8 . 1 8 16 8 7 . 5 7 26 2 . 9 5 -1 4 1 . 6 0 22 1 . 6 4 1.98 17 9 7 . 0 0 29 . 1 5 32 8 . 2 1 17 4 1 . 6 2 29 3 . 2 9 -1 5 7 . 6 0 24 7 . 4 4 0.56 18 2 9 . 0 0 29 . 0 5 32 8 . 4 2 17 6 9 . 5 8 30 8 . 8 4 -1 6 5 . 7 8 26 0 . 6 8 0.43 18 6 1 . 0 0 29 . 4 4 32 6 . 7 7 17 9 7 . 5 0 32 4 . 4 7 -1 7 4 . 1 6 27 3 . 8 8 2.80 18 9 2 . 0 0 29 . 3 7 32 6 . 5 5 18 2 4 . 5 1 33 9 . 6 9 -1 8 2 . 5 2 28 6 . 6 0 0.41 19 2 3 . 0 0 28 . 9 8 32 6 . 0 4 18 5 1 . 5 8 35 4 . 8 0 -1 9 0 . 9 1 29 9 . 1 7 1.50 19 8 6 . 0 0 29 . 6 8 32 5 . 8 4 19 0 6 . 5 0 38 5 . 6 6 -2 0 8 . 1 9 32 4 . 7 4 1.13 20 4 9 . 0 0 31 . 0 6 32 6 . 1 6 19 6 0 . 8 5 41 7 . 5 2 -2 2 6 . 0 0 35 1 . 1 5 2.21 20 7 3 . 0 0 31 . 2 3 32 6 . 6 5 19 8 1 . 3 9 42 9 . 9 3 -2 3 2 . 8 7 36 1 . 4 9 1.25 21 0 6 . 0 0 30 . 8 0 32 6 . 3 7 20 0 9 . 6 7 44 6 . 9 4 -2 4 2 . 2 5 37 5 . 6 7 1.37 21 4 0 . 0 0 30 . 6 9 32 6 . 7 7 20 3 8 . 8 9 46 4 . 3 2 -2 5 1 . 8 3 39 0 . 1 8 0.67 21 7 1 . 0 0 30 . 4 5 32 6 . 7 3 20 6 5 . 5 8 48 0 . 0 8 -2 6 0 . 4 7 40 3 . 3 6 0.79 22 0 3 . 0 0 30 . 4 9 32 6 . 6 9 20 9 3 . 1 6 49 6 . 3 1 -2 6 9 . 3 8 41 6 . 9 3 0.14 22 3 4 . 0 0 30 . 2 9 32 6 . 1 3 21 1 9 . 9 0 51 1 . 9 9 -2 7 8 . 0 6 42 9 . 9 9 1.11 22 6 5 . 0 0 30 . 0 3 32 6 . 7 2 21 4 6 . 7 1 52 7 . 5 7 -2 8 6 . 6 7 44 2 . 9 7 1.27 22 9 7 . 0 0 29 . 8 7 32 7 . 2 7 21 7 4 . 4 4 54 3 . 5 4 -2 9 5 . 3 7 45 6 . 3 6 1.00 23 2 8 . 0 0 29 . 6 7 32 6 . 6 3 22 0 1 . 3 5 55 8 . 9 3 -3 0 3 . 7 6 46 9 . 2 7 1.20 23 5 9 . 0 0 29 . 3 2 32 6 . 6 9 22 2 8 . 3 3 57 4 . 1 9 -3 1 2 . 1 5 48 2 . 0 2 1.15 23 9 1 . 0 0 29 . 0 3 32 6 . 8 4 22 5 6 . 2 7 58 9 . 7 9 -3 2 0 . 7 0 49 5 . 0 6 0.91 24 2 2 . 0 0 29 . 2 3 32 6 . 0 1 22 8 3 . 3 5 60 4 . 8 8 -3 2 9 . 0 5 50 7 . 6 4 1.45 Ni c o l a i C r e e k # 1 4 18 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 Ve r t i c a l Se c t i o n 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 ( - ) 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 ) 24 5 4 . 0 0 29 . 3 1 32 5 . 3 8 23 1 1 . 2 6 62 0 . 5 2 -3 3 7 . 8 7 52 0 . 5 6 0.99 24 8 5 . 0 0 28 . 9 8 32 5 . 1 2 23 3 8 . 3 4 63 5 . 6 2 -3 4 6 . 4 7 53 2 . 9 6 1.15 25 1 6 . 0 0 29 . 2 8 32 3 . 4 6 23 6 5 . 4 2 65 0 . 7 0 -3 5 5 . 2 8 54 5 . 2 1 2.78 25 5 1 . 0 0 29 . 4 4 32 2 . 2 9 23 9 5 . 9 2 66 7 . 8 3 -3 6 5 . 6 4 55 8 . 9 0 1.71 25 8 3 . 0 0 29 . 4 0 32 3 . 0 3 24 2 3 . 7 9 68 3 . 5 2 -3 7 5 . 1 7 57 1 . 3 9 1.14 26 1 4 . 0 0 29 . 0 6 32 2 . 4 9 24 5 0 . 8 5 69 8 . 6 4 -3 8 4 . 3 3 58 3 . 4 5 1.39 26 4 6 . 0 0 29 . 1 0 32 2 . 8 3 24 7 8 . 8 1 71 4 . 1 6 -3 9 3 . 7 7 59 5 . 8 1 0.53 26 7 7 . 0 0 28 . 9 4 32 1 . 9 3 25 0 5 . 9 2 72 9 . 1 7 -4 0 2 . 9 5 60 7 . 7 3 1.50 27 0 8 . 0 0 29 . 7 4 32 2 . 4 1 25 3 2 . 9 4 74 4 . 3 2 -4 1 2 . 2 6 61 9 . 7 3 2.67 27 4 0 . 0 0 29 . 8 0 32 2 . 7 8 25 6 0 . 7 2 76 0 . 1 8 -4 2 1 . 9 1 63 2 . 3 5 0.61 27 7 1 . 0 0 30 . 6 2 32 2 . 3 4 25 8 7 . 5 1 77 5 . 7 5 -4 3 1 . 4 0 64 4 . 7 3 2.72 28 0 2 . 0 0 30 . 8 0 32 3 . 1 8 26 1 4 . 1 6 79 1 . 5 5 -4 4 0 . 9 8 65 7 . 3 4 1.50 28 3 0 . 0 0 30 . 5 8 32 2 . 4 6 26 3 8 . 2 4 80 5 . 8 2 -4 4 9 . 6 1 66 8 . 7 2 1.53 28 6 2 . 0 0 30 . 1 4 32 2 . 8 2 26 6 5 . 8 5 82 1 . 9 6 -4 5 9 . 4 3 68 1 . 5 8 1.47 28 9 3 . 0 0 30 . 0 2 32 3 . 7 3 26 9 2 . 6 8 83 7 . 4 8 -4 6 8 . 7 2 69 4 . 0 3 1.53 29 2 4 . 0 0 30 . 1 2 32 4 . 3 6 27 1 9 . 5 0 85 3 . 0 0 -4 7 7 . 8 4 70 6 . 6 0 1.06 29 5 6 . 0 0 29 . 8 2 32 4 . 5 0 27 4 7 . 2 2 86 8 . 9 8 -4 8 7 . 1 4 71 9 . 6 1 0.97 29 8 7 . 0 0 29 . 5 9 32 4 . 8 2 27 7 4 . 1 5 88 4 . 3 3 -4 9 6 . 0 2 73 2 . 1 4 0.89 30 1 9 . 0 0 29 . 4 0 32 5 . 4 7 28 0 2 . 0 0 90 0 . 0 9 -5 0 5 . 0 3 74 5 . 0 7 1.16 30 5 0 . 0 0 29 . 1 8 32 5 . 3 9 28 2 9 . 0 4 91 5 . 2 5 -5 1 3 . 6 3 75 7 . 5 6 0.73 30 8 1 . 0 0 29 . 0 1 32 5 . 7 2 28 5 6 . 1 3 93 0 . 3 2 -5 2 2 . 1 6 76 9 . 9 9 0.74 31 1 5 . 0 0 28 . 4 7 32 5 . 4 9 28 8 5 . 9 4 94 6 . 6 7 -5 3 1 . 3 9 78 3 . 4 8 1.64 31 4 8 . 0 0 27 . 9 8 32 5 . 2 5 29 1 5 . 0 2 96 2 . 2 8 -5 4 0 . 2 6 79 6 . 3 2 1.51 31 8 0 . 0 0 27 . 7 3 32 4 . 3 9 29 4 3 . 3 1 97 7 . 2 3 -5 4 8 . 8 8 80 8 . 5 4 1.48 32 1 1 . 0 0 27 . 5 2 32 5 . 0 2 29 7 0 . 7 7 99 1 . 6 0 -5 5 7 . 1 8 82 0 . 2 7 1.17 32 4 2 . 0 0 27 . 3 4 32 5 . 7 8 29 9 8 . 2 9 10 0 5 . 8 7 -5 6 5 . 2 9 83 2 . 0 3 1.25 32 7 3 . 0 0 26 . 4 9 32 7 . 4 0 30 2 5 . 9 3 10 1 9 . 9 1 -5 7 3 . 0 2 84 3 . 7 4 3.63 Ni c o l a i C r e e k # 1 4 19 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 Ve r t i c a l Se c t i o n 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 ( - ) 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 ) 33 0 2 . 0 0 25 . 1 9 32 8 . 3 4 30 5 2 . 0 3 10 3 2 . 5 4 -5 7 9 . 7 5 85 4 . 4 4 4.71 33 3 2 . 0 0 23 . 6 8 32 8 . 6 6 30 7 9 . 3 4 10 4 4 . 9 4 -5 8 6 . 2 3 86 5 . 0 2 5.05 33 6 3 . 0 0 22 . 3 0 32 7 . 8 6 31 0 7 . 8 8 10 5 7 . 0 4 -5 9 2 . 6 0 87 5 . 3 2 4.55 33 9 5 . 0 0 20 . 7 4 32 7 . 0 3 31 3 7 . 6 5 10 6 8 . 7 8 -5 9 8 . 9 2 88 5 . 2 1 4.98 34 2 6 . 0 0 19 . 0 8 32 7 . 4 2 31 6 6 . 7 9 10 7 9 . 3 3 -6 0 4 . 6 3 89 4 . 0 9 5.36 34 5 8 . 0 0 18 . 3 3 32 7 . 3 0 31 9 7 . 1 0 10 8 9 . 5 9 -6 1 0 . 1 7 90 2 . 7 3 2.35 34 9 4 . 0 0 17 . 2 6 32 7 . 6 1 32 3 1 . 3 8 11 0 0 . 5 9 91 2 . 0 1 61 6 . 0 8 3.00 35 2 5 . 0 0 16 . 3 0 32 6 . 9 5 32 6 1 . 0 6 11 0 9 . 5 4 91 9 . 5 4 62 0 . 9 2 3.14 35 5 7 . 0 0 15 . 2 5 32 4 . 9 8 32 9 1 . 8 5 11 1 8 . 2 3 92 6 . 7 5 62 5 . 7 8 3.69 35 8 8 . 0 0 14 . 7 0 32 3 . 5 0 33 2 1 . 8 0 11 2 6 2 4 93 3 . 2 4 63 0 . 4 6 2.15 36 2 0 . 0 0 13 . 5 6 23 2 . 3 3 33 5 2 . 8 3 11 3 4 . 0 4 93 9 . 5 2 63 5 . 1 2 3.56 36 4 9 . 0 0 12 . 3 3 32 4 . 0 2 33 8 1 . 0 9 11 4 0 . 5 3 94 4 7 5 63 8 . 9 7 4.26 36 8 1 . 0 0 11 . 1 1 32 5 . 8 9 34 1 2 . 4 3 11 4 7 . 0 3 95 0 . 0 7 64 2 . 7 0 4.02 37 1 3 . 0 0 9. 9 4 32 5 . 6 4 34 4 3 . 8 9 11 5 2 . 8 7 95 4 . 9 0 64 5 . 9 9 3.64 37 4 4 . 0 0 8. 8 2 32 3 . 8 5 34 7 4 . 4 7 11 5 7 . 9 2 95 9 . 0 3 64 8 . 9 0 3.74 37 7 6 . 0 0 8. 3 1 32 2 . 4 2 35 0 6 . 1 2 11 6 2 . 6 8 96 2 . 8 4 65 1 . 7 6 1.73 38 0 7 . 0 0 8. 1 3 32 2 . 6 2 35 3 6 . 8 0 11 6 7 . 1 0 96 6 . 3 6 65 4 . 4 6 0.59 38 3 9 . 0 0 7. 6 0 32 6 . 7 0 35 6 8 . 5 0 11 7 1 . 4 8 96 9 . 9 2 65 6 . 9 9 2.41 38 7 0 . 0 0 7. 5 2 33 1 . 2 2 35 9 9 . 2 3 11 7 5 . 5 5 97 3 . 4 2 65 9 . 1 0 1.93 39 0 1 . 0 0 7. 3 8 33 1 . 9 2 36 2 9 . 9 2 11 7 9 . 5 5 97 6 . 9 5 66 1 . 0 1 0.55 39 3 4 . 0 0 7. 1 9 33 1 . 4 5 36 6 2 . 7 0 11 8 3 . 9 9 98 0 . 6 3 66 2 . 9 9 0.60 39 6 5 . 0 0 66 9 33 0 . 2 5 36 9 3 . 4 6 11 8 7 . 5 2 98 3 . 9 7 66 4 . 8 5 0.88 39 9 7 . 0 0 6. 5 1 32 9 . 2 7 37 2 5 . 2 4 11 9 1 . 2 7 98 7 . 2 1 66 6 . 7 4 1.47 40 2 8 0 0 6. 3 7 32 8 . 3 4 37 5 6 . 0 5 11 9 4 . 7 4 99 0 . 1 9 66 8 . 5 4 0.57 40 5 9 . 0 0 6. 4 7 33 0 . 2 8 37 8 6 . 8 5 11 9 8 . 3 1 99 3 . 1 7 67 0 . 3 1 0.78 40 9 0 . 0 0 6. 3 1 33 0 . 2 3 38 1 7 . 6 6 12 0 1 . 6 4 99 6 1 6 67 2 . 0 2 0.53 41 2 2 . 0 0 6. 3 0 32 9 . 8 6 38 4 9 . 4 7 12 0 5 . 1 4 99 9 . 2 0 67 3 . 7 7 0.13 41 5 3 . 0 0 6. 1 7 33 0 . 3 7 38 8 0 . 2 8 12 0 8 . 5 0 10 0 2 . 1 67 5 . 4 5 0.45 Ni c o l a i C r e e k # 1 4 20 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 Ve r t i c a l Se c t i o n 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 ( - ) 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 ) 41 8 5 . 0 0 6. 1 4 32 8 . 2 3 39 1 2 . 1 0 12 1 5 . 2 5 10 0 5 . 0 7 67 7 . 2 0 0.72 42 1 6 . 0 0 6. 1 8 32 8 . 8 0 39 4 2 . 9 2 12 1 5 . 2 5 10 0 7 . 9 1 67 8 . 9 4 0.23 42 4 6 . 0 0 6. 1 2 32 9 . 3 3 39 7 2 . 7 5 12 1 8 . 4 6 10 1 0 . 6 6 68 0 . 5 9 0.28 42 7 9 . 0 0 6. 1 0 32 9 . 1 9 40 0 5 . 5 6 12 2 1 . 9 6 10 1 3 . 6 8 68 2 . 3 9 0.07 43 1 1 . 0 0 5. 8 8 33 0 . 0 1 40 3 7 . 3 9 12 2 5 . 2 9 10 1 6 . 5 6 68 4 . 0 8 0.74 43 4 3 . 0 0 5. 5 0 32 7 . 5 2 40 6 9 . 2 3 12 2 8 . 7 2 10 1 9 . 2 7 68 5 . 7 2 1.39 43 7 2 . 0 0 5. 4 7 32 9 . 0 2 40 9 8 . 1 0 12 3 1 . 2 3 10 2 1 . 6 3 68 7 . 1 8 0.51 44 0 4 . 0 0 5. 3 1 32 8 . 4 6 41 2 9 . 9 5 12 3 4 . 2 4 10 2 4 . 2 0 68 8 . 7 4 053 44 3 4 . 0 0 5. 2 5 32 9 1 0 41 5 9 . 8 3 12 3 7 . 0 0 10 2 6 . 5 6 69 0 . 1 7 0.28 44 6 4 . 0 0 5. 1 4 32 6 . 7 5 41 8 9 . 7 0 12 3 9 . 7 1 10 2 8 . 7 0 69 1 . 6 1 0.80 44 9 6 . 0 0 5. 1 2 32 5 . 9 9 42 2 1 . 5 8 12 4 2 . 5 8 10 3 1 . 2 5 69 3 2 0 0.22 45 3 0 . 0 0 4. 9 2 32 5 . 3 3 42 5 5 . 4 4 12 4 5 . 5 5 10 3 3 7 1 69 4 . 8 8 0.60 45 6 1 . 0 0 5. 0 0 32 4 . 4 8 42 8 6 . 3 3 12 4 8 . 2 3 10 3 5 . 9 0 69 6 . 4 2 0.35 45 9 3 0 0 49 5 32 4 . 3 3 42 1 9 . 2 1 12 5 1 . 0 1 10 3 8 . 1 6 69 8 . 0 4 0.17 46 2 4 . 0 0 4. 8 4 32 4 . 3 2 43 4 9 . 0 9 12 5 3 . 6 5 10 4 0 . 3 1 69 9 . 5 8 0.37 46 5 6 . 0 0 4. 8 5 32 3 . 7 3 43 8 0 . 9 8 12 5 6 . 3 5 10 4 2 . 4 9 70 1 . 1 6 0.16 46 8 7 . 0 0 4. 6 7 32 6 . 5 2 44 1 1 . 8 7 12 5 8 . 9 2 10 4 4 . 6 0 70 2 . 6 3 0.94 47 1 8 . 0 0 4. 7 0 32 6 . 9 6 44 4 2 . 7 7 12 6 1 . 4 5 10 4 6 . 7 2 70 4 . 0 2 0.16 47 3 0 . 0 0 4. 6 7 32 6 . 5 2 44 5 4 . 7 3 12 6 2 . 4 3 10 4 7 . 5 4 70 4 . 5 6 0.41 47 5 0 . 0 0 4. 7 1 32 5 . 4 2 44 7 4 . 6 6 12 6 4 . 0 7 10 4 8 . 8 9 70 5 . 4 8 0.48 47 8 1 . 0 0 4. 4 8 32 5 . 4 9 45 0 5 . 5 6 12 6 6 . 5 5 10 5 0 . 9 4 70 6 . 8 8 0.72 47 8 8 . 0 0 4. 5 8 32 7 . 2 8 45 1 2 . 5 4 12 6 7 . 1 0 10 5 1 . 4 0 70 7 . 1 9 2.48 Ni c o l a i C r e e k # 1 4 21 4. 3 . MU D R E C O R D Co n t r a c t o r : M I D r i l l i n g F l u i d s M u d T y p e s : G e l S p ud M u d 1 3 9 ’ – 1 5 2 3 ’ ; 6 % K C l F l o - P r o N T 1 5 2 3 ’ – 8 740’ DA T E M D M W V I S P V Y P G E L S F I L F C S O L O I L / H 2 O SD M B T p H C l - C a + 7/ 0 1 / 2 0 1 3 7/ 0 2 / 2 0 1 3 7/ 0 3 / 2 0 1 3 1 0 6 1 0 . 0 1 8 0 29 3 8 3 4 / 4 0 / 4 4 1 0 2 6 . 7 0 / 9 3 - - 9.3 1300 80 7/ 0 4 / 2 0 1 3 2 2 0 1 0 1 0 0 23 3 0 1 6 / 2 5 / 3 0 1 0 2 6 . 7 0 / 9 3 2 . 5 0 5 9.0 1200 40 7/ 0 5 / 2 0 1 3 6 6 9 1 0 . 2 8 0 18 3 9 2 0 / 4 5 / 5 0 1 0 2 9 . 7 0 / 9 0 4 . 5 0 5 8.2 1000 40 7/ 0 6 / 2 0 1 3 7 1 6 1 0 . 3 8 0 19 3 6 1 5 / 2 4 / 3 0 1 0 2 1 0 . 7 0 / 8 9 4 . 5 0 5 8 . 8 1200 40 7/ 0 7 / 2 0 1 3 7 1 6 1 0 . 0 5 4 1 9 1 8 7 / 1 2 / 1 5 1 0 2 9 . 4 0 / 9 0 4 .5 0 5 8 . 3 9 0 0 0 1 6 0 7/ 0 8 / 2 0 1 3 7 1 6 1 0 . 0 5 2 1 8 2 8 7 / 8 / 9 5 1 5 . 7 0 / 9 3 0 . 2 5 5 9 . 0 1 5 0 0 0 2 0 7/ 0 9 / 2 0 1 3 1 0 1 6 1 0 . 4 5 4 2 3 2 9 8 / 1 2 / 1 5 4 . 8 1 7 . 8 0 / 9 1 0 . 5 5 9 . 5 1 5 0 0 0 4 0 7/ 1 0 / 2 0 1 3 1 6 9 0 1 0 . 2 6 0 2 5 2 6 1 0 / 1 2 / 1 3 4 . 5 1 7 . 8 0 / 9 1 0 . 5 5 9 . 0 1 5 0 0 0 2 0 7/ 1 1 / 2 0 1 3 2 6 5 4 1 0 . 0 5 0 2 0 2 2 7 / 1 0 / 1 2 4 . 7 1 7 . 8 0 / 9 1 0 . 5 7 9 . 1 1 5 0 0 0 8 0 7/ 1 2 / 2 0 1 3 3 1 5 7 9 . 9 5 5 0 1 8 2 4 9 / 1 3 / 1 5 5 . 0 1 7 . 8 0 / 9 1 0 . 7 5 1 0 9 . 0 1 5 0 0 0 1 2 0 7/ 1 3 / 2 0 1 3 3 5 2 5 9 . 8 5 0 2 1 2 0 9 / 1 1 / 1 2 5 1 7 . 8 0 / 9 1 0 . 5 1 0 9 . 5 1 5 0 0 0 1 2 0 7/ 1 4 / 2 0 1 3 3 5 2 5 9 . 8 5 0 2 2 2 1 9 / 1 1 / 1 3 5 1 7 . 8 0 / 9 0 0 . 5 1 0 9 . 5 1 5 0 0 0 1 2 0 7/ 1 5 / 2 0 1 3 4 0 3 3 9 . 8 4 9 2 2 2 0 8 / 1 0 / 1 2 5 1 7 . 8 0 / 9 1 0 . 5 1 2 . 5 9 . 0 1 5 0 0 0 1 2 0 7/ 1 6 / 2 0 1 3 4 5 9 8 9 . 8 5 0 2 1 2 1 1 0 / 1 2 / 1 5 5 1 7 . 8 0 / 9 1 0 .3 1 2 . 5 9 . 2 1 5 0 0 0 1 6 0 7/ 1 7 / 2 0 1 3 4 8 3 0 9 . 8 5 0 1 5 1 9 4 / 7 / 1 1 4 . 9 1 7 . 8 0 / 9 1 0 .3 1 2 . 5 9 . 8 1 5 0 0 0 8 0 7/ 1 8 / 2 0 1 3 4 8 3 0 9 . 8 5 8 1 8 2 2 5 / 9 / 1 7 4 . 9 1 7 . 8 0 / 9 1 0 .3 1 0 8 . 9 1 5 0 0 0 2 4 0 7/ 1 9 / 2 0 1 3 4 8 3 0 9 . 8 4 7 1 2 2 0 4 / 9 / 1 6 5 1 7 . 8 0 / 9 1 0 . 3 1 0 8 . 6 1 5 0 0 0 8 0 Ni c o l a i C r e e k # 1 4 22 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 Ha l i b . Tr i - c o n e 51 8 6 8 8 6 6 1x 1 0 3x 1 4 10 6 7 1 0 6 0 4 15 . 5 8 63 0 – 8 . 9 – 2 3 7 0 29 5 – 58 4 – 98 8 NR 2 8 . 8 7 5 Ha l i b . Tr i - c o n e 11 5 0 0 5 7 4 3 - 1 6 7 1 0 ’ 3 5 2 5 ’ 2 8 1 5 47 . 8 6 10 3 0 – 1 1 . 5 – 3 2 7 0 21 – 15 7 3 – 20 0 0 3-4-CT-A-E-I-WT-ER 3 8 . 8 7 5 Ha l i b . Tr i - c o n e 12 0 4 4 1 4 1 3 - 1 6 35 2 5 4 8 3 0 1 3 0 5 25 . 8 5 52 0 - 5 . 2 - 2 7 N / A 3 3 5 – 1 9 1 5 - 2 2 5 6 5 –6–all– Loose bearing- -TD NR = N O T R E C O R D E D Ni c o l a i C r e e k # 1 4 23 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 ' 7 / 3 / 2 0 1 3 7 / 5 / 2 0 1 3 7 / 7 / 2 0 1 3 7 / 9 / 2 0 1 3 7 / 1 1 / 2 0 3 1 7 / 1 3 / 2 0 1 3 7 / 1 5 / 2 0 1 3 7 / 1 7 / 2 0 1 3 7 / 1 9 / 2 0 1 3 8½" hole 12¼" hole AURORA GAS NICOLAI CREEK #14 Daily Report Report for: Shane McGeehan David Wallingford Date: 07/04/2013 Time: 00:24 Current Depth (MD): 113’ Current Depth (TVD): 0 Current Operations: 24 hr Footage (MD): 0 Drilling Making BHA as we drill down hole. Drilling Parameters ROP: Current: - Max: - Torque: Current: - Max: - WOB: Current - Max: - RPM: Current: - Max: - PP: Current: - Max: - Lag: Strokes: - Time: - Surf-Surf: Strokes: - Time: - ECD: Current: - Max: - Mud Properties @ 13390 MW: 10.0 FV: 180 PV: 29 YP: 38 FL: 10.0 Gels: 34/40/44 Sol: 6.7 pH: 9.3 Cl -: 1300 Ca ++: 80 MW Change: Depth: From: To: Reason: Mud Loss event: Depth: Volume: Gas Data Ditch Gas: Current: - Max: Depth (MD/TVD): Avg BG : - Gas Events Depth (MD/TVD) TG C1 C2 C3 iC4 nC4 iC5 nC5 Trip Gas Conn. Gas (units above background) Gas Samples No. Depth (MD/TVD) TG C1 C2 C3 i-C4 N-C5 i-C6 n-C7 Lithologies: Current: Last 24 hrs: Operational Summary: Built 250 bbls of mud and tested lines. Tested all surface equipment. Picked up BHA and assembled while drilling down hole. Calibrations: Total gas and chromatograph tested and calibrated. Failures: (none) Daily Cost: $3173.90 Aurora Gas LLC DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR DATE Jul 05, 2013 DEPTH 516.00000 PRESENT OPERATION Circulating and conditioning mud TIME 00:00:01 YESTERDAY 113.00000 24 HOUR FOOTAGE 403 CASING INFORMATION 13 3/8" @ 94' 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 12.2 Halliburton tri-cone 51868866 1x10, 3x14 94 still in 516 422 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 6338.0 @ 386 1.1 @ 282 61.7 8.3 FT/HR SURFACE TORQUE 0 @ 516 0 @ 516 0.0 0.0 AMPS WEIGHT ON BIT 23 @ 492 2 @ 431 7.7 13.2 KLBS ROTARY RPM 0 @ 516 0 @ 516 0.0 0.0 RPM PUMP PRESSURE 894 @ 515 295 @ 294 487.3 889.6 PSI DRILLING MUD REPORT DEPTH MW 10.1 VIS 100 PV 22 YP 30 FL 10.0 Gels 15/30/40 CL- 1300 FC 1 SOL 6.7 SD 2.5 OIL 0/93 MBL 5 pH 8.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ 454 0 @ 443.00000 0.2 TRIP GAS CUTTING GAS 0 @ 516 0 @ 516.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2821 @ 444 94 @ 514 86.3 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 516 0 @ 516 0.0 AVG PROPANE (C-3) 0 @ 516 0 @ 516 0.0 CURRENT BUTANE (C-4) 0 @ 516 0 @ 516 0.0 CURRENT BACKGROUND/AVG 0.6/2 PENTANE (C-5) 0 @ 516 0 @ 516 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Conglomerate 30%, Conglomerate sandstone 20%, Sand 40% aND sILTSTONE 10% DAILY ACTIVITY SUMMARY Drilled from 113 Ft. to 214 Ft. and worked on pumps and air boot between pits. Drilled to 306 Ft. and continued to build volume in pits. Continued Drilling to 516 Ft. and circulated mud. Stopped and commenced pulling out of hole to conductor. Pulled out of hole and performed wireline survey of hole and found the hole had a one degree deviation. Finished wireline survey and tripped back in hole to bottom at 516 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY hARRY bLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan, David Willingford DATE , July 6, 2013 DEPTH 710 PRESENT OPERATION Waiting on tools. TIME 00:00:00 YESTERDAY 516 24 HOUR FOOTAGE 194 CASING INFORMATION 13 3/8" @ 94' 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 Halliburton tri-cone 51868866 1x10,3x14 94 710 616 15.58 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 723.1 @ 555 0.6 @ 626. 68.2 21.6 FT/HR SURFACE TORQUE 0 @ 710 0 @ 710 0.0 0.0 AMPS WEIGHT ON BIT 21 @ 530 0 @ 517 11.9 16.1 KLBS ROTARY RPM 0 @ 710 0 @ 710 0.0 0.0 RPM PUMP PRESSURE 988 @ 611 520 @ 626 811.6 869 PSI DRILLING MUD REPORT DEPTH MW 10.2 VIS 80 PV 17 YP 39 FL 10.0 Gels 18/27/40 CL- 1200 FC 1 SOL 9.7 SD 4.5 OIL 0/90 MBL 5 pH 8.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 14 @ 696 0 @ 534 2.5 TRIP GAS CUTTING GAS 0 @ 710 0 @ 710. 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2885 @ 695 21 @ 534 516.2 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 710 0 @ 710 0.0 AVG PROPANE (C-3) 0 @ 710 0 @ 710 0.0 CURRENT BUTANE (C-4) 0 @ 710. 0 @ 710 0.0 CURRENT BACKGROUND/AVG 0.3/2.5 PENTANE (C-5) 0 @ 710 0 @ 710 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tuffaceous Claystone 60%, Tuffaceous Siltstone 20%, Conglomerate sandstone 10% and Sand 10% DAILY ACTIVITY SUMMARY Finished tripping in to 516 Ft. Continued to drill after circulated and conditioned mud. Drilled to 710 Ft. Circulated mud around, and pulled out of hole to eight inch collars. Tripped back in and continued to circulate and condition mud while monitoring well. Crew was waiting for tools to run . CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY Harry Bleys Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 7, 2013 DEPTH 710 PRESENT OPERATION Waiting on cement to cure. TIME 00:00:00 YESTERDAY 710 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 94' 9 5/8" @ 700' 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 Halliburton Tri-cone 5186866 3X16 94 710 616 15.58 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0 @ 0 @ 0 0 FT/HR SURFACE TORQUE 0 @ 0 @ 0 0 AMPS WEIGHT ON BIT 0 @ 0 @ 0 0 KLBS ROTARY RPM 0 @ 0 @ 0 0 RPM PUMP PRESSURE 0 @ 0 @ 0 0 PSI DRILLING MUD REPORT DEPTH 1016 MW 10.0 VIS 52 PV 52 YP 28 FL 5 Gels 7/8/9 CL- 15000 FC 1/0 SOL 5.7 SD 4.5 OIL 0/93 MBL 5 pH 9.0 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0 TRIP GAS CUTTING GAS 0 @ 0 @ 0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 0 @ 0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 0 @ 0 AVG PROPANE (C-3) 0 @ 0 @ 0 CURRENT BUTANE (C-4) 0 @ 0 @ 0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 0 @ 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tuffaceous Claystone 60%, Tuffaceous Siltstone 20%, Conglomerate Sand 10%, and Sand 10% DAILY ACTIVITY SUMMARY .Finished tripping to 516 Ft and took a wireline survey of hole and found one degree off center to bottom of hole. Circulated and commenced drilling to 710 Ft. Circulated mud around. Pulled out of hole to Eight inch collars. Tripped back in and continued to circulate and condition mud while monotoring well. At present waiting on casing tools. CANRIG PERSONNEL ON BOARD 4 DAILY COST 4$3173.00 REPORT BY Harry Bleys Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 8, 2013 DEPTH 710 PRESENT OPERATION Working on stack, nippling up BOPs TIME 00:00:00 YESTERDAY 710 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 94' 9 5/8" @ 700' 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 Halliburton Tri-cone 5186866 3X16 94 710 616 15.58 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0 @ 0 @ 0 0 FT/HR SURFACE TORQUE 0 @ 0 @ 0 0 AMPS WEIGHT ON BIT 0 @ 0 @ 0 0 KLBS ROTARY RPM 0 @ 0 @ 0 0 RPM PUMP PRESSURE 0 @ 0 @ 0 0 PSI DRILLING MUD REPORT DEPTH 1016 MW 10.2 VIS 64 PV 28 YP 19 FL 10 Gels 10/19/24 CL- 1100 FC 1/0 SOL 10.7 SD 4.5 OIL 0/89 MBL 5 pH 8.8 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0 TRIP GAS CUTTING GAS 0 @ 0 @ 0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 0 @ 0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 0 @ 0 AVG PROPANE (C-3) 0 @ 0 @ 0 CURRENT BUTANE (C-4) 0 @ 0 @ 0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 0 @ 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tuffaceous Claystone 60%, Tuffaceous Siltstone 20%, Conglomerate Sand 10%, and Sand 10% DAILY ACTIVITY SUMMARY Cleaned and serviced rig. Changed boot between pits. Nippled down stack at hydril, and cut casing prepared it and welded wellhead. At present nippling up BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY Harry Bleys Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 9, 2013 DEPTH 710 PRESENT OPERATION Swapping mud over in active system TIME 00:00:00 YESTERDAY 710 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 94' 9 5/8" @ 700' 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 Halliburton Tri-cone 5186866 3X16 94 710 616 15.58 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0 @ 0 @ 0 0 FT/HR SURFACE TORQUE 0 @ 0 @ 0 0 AMPS WEIGHT ON BIT 0 @ 0 @ 0 0 KLBS ROTARY RPM 0 @ 0 @ 0 0 RPM PUMP PRESSURE 0 @ 0 @ 0 0 PSI DRILLING MUD REPORT DEPTH 1016 MW 10.0 VIS 52 PV 52 YP 28 FL 5 Gels 7/8/9 CL- 15000 FC 1/0 SOL 5.7 SD 4.5 OIL 0/93 MBL 5 pH 9.0 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 0 @ 0 TRIP GAS CUTTING GAS 0 @ 0 @ 0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 0 @ 0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 0 @ 0 AVG PROPANE (C-3) 0 @ 0 @ 0 CURRENT BUTANE (C-4) 0 @ 0 @ 0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 0 @ 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tuffaceous Claystone 60%, Tuffaceous Siltstone 20%, Conglomerate Sand 10%, and Sand 10% DAILY ACTIVITY SUMMARY Completed nippling up and rigged up to test BOP's. Worked on rigging up gas buster and moved trip tank. Picked up directional tools and tripped in hole. Picked up the remaining BOP's as tripped down hole. Tagged cement at 611Ft. Drilled down and performed CIT test. At present circulating and swapping out mud. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY Harry Bleys Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 10, 2013 DEPTH 1117 PRESENT OPERATION Sperry Taking a survey TIME 00:00:04 YESTERDAY 710 24 HOUR FOOTAGE 407 CASING INFORMATION 13 3/8" @ 94' 9 5/8" @ 700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 887 5.82 315.48 886.67 916 6.31 320.86 915.51 950 6.48 326.23 949.30 981 6.59 328.94 980.10 1013 6.92 330.94 1011.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 7.875" Halliburton Tri-cone 1150074 3X16 710 still in 407 3.33 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 454.8 @ 921 2.4 @ 962 133.0 172.2 FT/HR SURFACE TORQUE 0 @ 1117 0 @ 1117 0.0 0.0 AMPS WEIGHT ON BIT 17 @ 815 0 @ 717 10.6 8.6 KLBS ROTARY RPM 0 @ 1117 0 @ 1117 0.0 0.0 RPM PUMP PRESSURE 1789 @ 917 411 @ 716 1298.0 1590.88 PSI DRILLING MUD REPORT DEPTH 1016 MW 10.4 VIS 54 PV 23 YP 29 FL 4.8 Gels 8/12/15 CL- 15000 FC SOL 7.8 SD 0.5 OIL 0/91 MBL 5.0 pH 9.5 Ca+ 40 CCI MWD SUMMARY INTERVAL 710 TO 1117 TOOLS Sperry Directional Module GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 102 @ 841 0 @ 947.00000 19.2 TRIP GAS CUTTING GAS 0 @ 1117 0 @ 1117.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 21150 @ 841 20 @ 764 3770.5 CONNECTION GAS HIGH ETHANE (C-2) 94 @ 1052 0 @ 960 8.4 AVG PROPANE (C-3) 3 @ 984 0 @ 960. 0.2 CURRENT BUTANE (C-4) 0 @ 1117 0 @ 1117 0.0 CURRENT BACKGROUND/AVG 17/19 PENTANE (C-5) 0 @ 1117 0 @ 1117 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Tuffaceous Claystone 40%, Tuffaceous Siltstone 40%, Sand 20% DAILY ACTIVITY SUMMARY Finished swapping mud in pits to KCL EZ MUD DP. Drilled cement and performed casing pressure test. Continued drilling out cement and drilled new hole to 736 Ft. Performed Leak off pressure test. Continued to slide and rotary drill down hole. At present continuing to drill ahead. Max gas of 102 u. at 841 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY Harry Bleys Aurora Gas LLC kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 11, 2013 DEPTH 1838 PRESENT OPERATION Drilling ahead. TIME 00:00:00 YESTERDAY 1117 24 HOUR FOOTAGE 721 CASING INFORMATION 13 3/8" @ 94' 9.625"@ 700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1640 29.18 330.89 1604.73 1672 28.99 330.22 1632.69 1704 29.61 329.40 1660.60 1735 29.50 328.18 1687.57 1797 29.15 328.21 1741.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.875" Halliburton Tri-cone 11500574 3x16 710 1128' 14.51 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 473.3 @ 1283 0.3 @ 1650 110.8 83.3 FT/HR SURFACE TORQUE 0 @ 1838 0 @ 1838 0.0 0.0 AMPS WEIGHT ON BIT 19 @ 1563 0 @ 1726 10.0 7.9 KLBS ROTARY RPM 0 @ 1838 0 @ 1838 0.0 0.0 RPM PUMP PRESSURE 1943 @ 1240 1494 @ 1763 1563.0 1546.7 PSI DRILLING MUD REPORT DEPTH 1690' MW 10.2 VIS 60 PV 25 YP 26 FL 4.5 Gels 10/12/13 CL- 15000 FC 1/0 SOL 7.8 SD 0.50 OIL 0/90.0 MBL 5.0 pH 9.0 Ca+ 20 CCI MWD SUMMARY INTERVAL 1117' TO 1838' TOOLS DIRECTIONAL MODLULE GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 82 @ 1387 0 @ 1138 24.8 TRIP GAS 35 CUTTING GAS 0 @ 1838 0 @ 1838 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 17777 @ 1694 92 @ 1138 4909.7 CONNECTION GAS HIGH 0 ETHANE (C-2) 32 @ 1119 0 @ 1214 1.4 AVG 0 PROPANE (C-3) 0 @ 1838 0 @ 1838 0.0 CURRENT 0 BUTANE (C-4) 0 @ 1838 0 @ 1838 0.0 CURRENT BACKGROUND/AVG 25/64 PENTANE (C-5) 0 @ 1838 0 @ 1838 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY TUFFACEOUS CLAYSTONE 60%, TUFFACEOUS SILTSTONE 20%, AND SAND 20%. DAILY ACTIVITY SUMMARY ROTARY DRILLED AND SLID TO 1209 Ft. CIRCULATED BOTTOMS UP AND COMMENCED SHORT TRIP TO 706 Ft. TRIPPED BACK IN HOLE TO 1117 Ft. AND CIRCULATED AND MONITORED THE WELL. WASHED TO BOTTOM AT 1209 Ft. AND CONTINUED TO DRILL AHEAD. CIRCULATED BOTTOMS UP AT 1648Ft. TRIPPED OUT TO 1209 Ft. AND REAMED BACK TO BOTTOM. AT PRESENT DRILLING AHEAD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 11, 2013 DEPTH 2654 PRESENT OPERATION Drilling ahead. TIME 20:21:48 YESTERDAY 1838 24 HOUR FOOTAGE 816 CASING INFORMATION 13 3/8"@94' 9.625"@700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2454 29.31 325.38 2311.26 2485 28.98 325.12 2338.34 2516 29.28 323.46 2365.42 2551 29.44 322.29 2395.92 2583 29.40 323.03 2423.79 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.785" Halliburton Tri-cone 11500574 3x16 710' 1944' 24.01 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 468.5 @ 1933 1.3 @ 2097 115.9 8.6 FT/HR SURFACE TORQUE 0 @ 2654 0 @ 2654 0.0 0 AMPS WEIGHT ON BIT 26 @ 2313 0 @ 1964 10.8 9.2 KLBS ROTARY RPM 0 @ 2654 0 @ 2654 0.0 0 RPM PUMP PRESSURE 1837 @ 2367 21 @ 1888 1589.6 1606.3 PSI DRILLING MUD REPORT DEPTH 2654' MW 10.0 VIS 50 PV 20 YP 22 FL 4.7 Gels 7/10/12 CL- 15000 FC 1/0 SOL 7.8 SD 0.50 OIL 0/91 MBL 7.0 pH 9.1 Ca+ 80 CCI MWD SUMMARY INTERVAL 1838' TO 2654' TOOLS Directional Module. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 90 @ 2346 8 @ 2501 23.0 TRIP GAS 0 CUTTING GAS 0 @ 2654 0 @ 2654 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 21408 @ 2346 1576 @ 2654 4725.8 CONNECTION GAS HIGH 14 ETHANE (C-2) 12 @ 2346 0 @ 2358 0.1 AVG 12 PROPANE (C-3) 0 @ 2654 0 @ 2654 0.0 CURRENT 0 BUTANE (C-4) 0 @ 2654 0 @ 2654 0.0 CURRENT BACKGROUND/AVG 1/23 PENTANE (C-5) 0 @ 2654 0 @ 2654 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SAND 40%, TUFFACEOUS CLAYSTONE 40%, TUFFACEOUS SILTSTONE 10%, AND TUFFACEOUS SANDSTONE 10%. DAILY ACTIVITY SUMMARY DRILLED TO 2150 Ft. AND CIRCULATED BOTTOMS UP. HIT TIGHT SPOT AND REAMED BACK 45 JOINTS. PICKED UP SWIVEL AND REAMED BACK TO BOTTOM. PUMPED FORTY BARREL SWEEP OF WALNUT PLUG TO CLEAN HOLE. CONITINUED TO DRILL TO 2654 Ft. STOPPED AND CIRCULATED AND PULLED UP SEVERAL STANDS TOO WASH AND REAM TO BOTTOM TO CLEAR HOLE. DRILLED TO 2672 Ft. AT PRESENT CIRCULATING AND MONITORING WELL. MAX GAS WAS 90 u AT 2346 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 12, 2013 DEPTH 3157 PRESENT OPERATION Drilling TIME 17:17:37 YESTERDAY 2654 24 HOUR FOOTAGE 503' CASING INFORMATION 13 3/8"@ 94' 9 625"@ 700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2893 30.02 323.73 2692.68 2924 30.12 324.36 2719.50 2956 29.82 324.50 2747.22 2987 29.59 324.82 2774.15 3115 28.47 325.49 2886.07 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.875" Halliburton Tri-cone 11500574 3x16 700' 2447' 35.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 287.8 @ 2991 2.2 @ 2811 62.7 78.3 FT/HR SURFACE TORQUE 0 @ 3157 0 @ 3157 0.0 0 AMPS WEIGHT ON BIT 31 @ 2888 0 @ 3096 12.3 0.4 KLBS ROTARY RPM 0 @ 3157 0 @ 3157 0.0 0 RPM PUMP PRESSURE 1941 @ 2863 1358 @ 2780 1713.5 1821.2 PSI DRILLING MUD REPORT DEPTH 3157' MW 9.95 VIS 50 PV 18 YP 24 FL 5.0 Gels 9/13/15 CL- 15000 FC 1/0 SOL 7.8 SD 0.75 OIL 0/91 MBL 10.0 pH 9.0 Ca+ 120 CCI MWD SUMMARY INTERVAL 2654' TO 3157' TOOLS Directional Module GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 103 @ 3113 1 @ 2672 17.4 TRIP GAS CUTTING GAS 0 @ 3157 0 @ 3157 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 20697 @ 3117 306 @ 2672 3408.8 CONNECTION GAS HIGH 18 ETHANE (C-2) 0 @ 3157 0 @ 3157 0.0 AVG 18 PROPANE (C-3) 0 @ 3157 0 @ 3157 0.0 CURRENT 18 BUTANE (C-4) 0 @ 3157 0 @ 3157 0.0 CURRENT BACKGROUND/AVG 13/17 PENTANE (C-5) 0 @ 3157 0 @ 3157 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY TUFFACEOUS CLAYSTONE 40%, TUFFACEOUS SILTSTONE 30%, SAND 20%, AND TUFFACEOUS SANDSTONE 10%. DAILY ACTIVITY SUMMARY DRILLING FROM 2654 Ft. TO 3157 Ft. CIRCULATED BOTTOMS UP AND CONDITIONED MUD. COMMENCED A WIPER TRIP PULLING OUT 45 JOINTS. TRIPPED BACK TO BOTTOM AND REACHED A TIGHT SPOT AT 2660 Ft. PUMPED BACK OUT 500 Ft AND WASHED AND REAMED BACK TO BOTTOM. AT PRESENT DRILLING DOWN HOLE. MAX GAS 103u. @ 3113 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 14, 2013 DEPTH 3525 PRESENT OPERATION Pulling out of hole to change bit. TIME 00:00:00 YESTERDAY 3157 24 HOUR FOOTAGE 368' CASING INFORMATION 13 3/8" @ 94' 9.625" @700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3302 25.19 328.34 3052.03 3332 23.68 328.66 3079.34 3336 22.30 327.86 3107.88 3395 20.74 327.03 3137.65 3426 19.08 327.42 3166.79 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.875" Halliburton Tri-cone 11500574 3x16 700' 3525' 2825' 47.86 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 453.6 @ 3523' 0.1 @ 3439' 81.5 292.2 FT/HR SURFACE TORQUE 0 @ 3525' 0 @ 3525' 0.0 0 AMPS WEIGHT ON BIT 32 @ 3293' 0 @ 3157' 16.4 8.6 KLBS ROTARY RPM 0 @ 3525' 0 @ 3525' 0.0 0 RPM PUMP PRESSURE 2000 @ 3456' 29 @ 3250' 1686.4 1815.9 PSI DRILLING MUD REPORT DEPTH 3525' MW 9.80 VIS 50 PV 21 YP 20 FL 5.0 Gels 9/11/12 CL- 15000 FC 1/ SOL 7.8 SD .5 OIL 0/90 MBL 10.0 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL 3157' TO 3525' TOOLS DIRECTIONAL MODULE. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 71 @ 3303 5 @ 3351 19.4 TRIP GAS 0 CUTTING GAS 0 @ 3525 0 @ 3525 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 16637 @ 3473 1040 @ 3351 4029.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 3525 -1 @ 3473 -0.0 AVG 0 PROPANE (C-3) 0 @ 3525 -1 @ 3473 -0.0 CURRENT 0 BUTANE (C-4) 0 @ 3525 -2 @ 3473 -0.0 CURRENT BACKGROUND/AVG 0/19 PENTANE (C-5) 0 @ 3525 -2 @ 3473 -0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SAND 60%, CONGLOMERITIC SAND 30, TUFFACEOUS CLAYSTONE. DAILY ACTIVITY SUMMARY WASHED AND REAMED TO BOTTOM AT 3157 Ft. CIRCULATED BOTTOMS UP AND MONITORED WELL. COMMENCED DRILLING TO 3375' AND 30 BBL WALNUT SWEEP TO CLEAN HOLE OUT. CONTINUED TO DRILL TO 3525 FT. DECISION REACHED TO PULL OUT OF HOLE FOR BIT TRIP. AT PRESENT NEAR CASING AND HOLE SURFACE. MAX GAS OF 71 u AT 3303'. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 15, 2013 DEPTH 3525 PRESENT OPERATION TRIPPING IN HOLE WITH NEW BIT. TIME 00:00:00 YESTERDAY 3525 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 94' 9.625" @700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3302 25.19 328.34 3052.03 3332 23.68 328.66 3079.34 3336 22.30 327.86 3107.88 3395 20.74 327.03 3137.65 3426 19.08 327.42 3166.79 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.875" Halliburton Tri-cone 11500574 3x16 700' 3525' 2825' 47.86 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 3525' MW 9.80 VIS 50 PV 22 YP 21 FL 5.0 Gels 9/11/13 CL- 15000 FC 1/ SOL 7.8 SD 0.5 OIL 0/91 MBL 10.0 pH 9.5 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0/0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SAND 60%, CONGLOMERITIC SAND 30, TUFFACEOUS CLAYSTONE. DAILY ACTIVITY SUMMARY SLOWLY PULLED OUT OF HOLE DUE TO TIGHT SPOTS. LAID DOWN AND RACKED BACK PIPE. RIGGED UP AND TESTED BOP'S. FINISHED BOP'S AND CLEANED AND SERVICED RIG AND WORKED ON BOTH PUMPS. COMMENCED PICKING UP PIPE AND BHA WITH NEW HALLIBURTON TRI-CONE BIT, AND TRIPPING IN HOLE SLOWLY. TESTED MWD SIGNAL AND CONTINUED TO TRIP IN HOLE. AT PRESENT AT 1370 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 16, 2013 DEPTH 4035' PRESENT OPERATION Washing and reaming down hole from 3600 Ft. to bottom at 4035 Ft. TIME 00:00:00 YESTERDAY 3525.' 24 HOUR FOOTAGE 510' CASING INFORMATION 13 3/8" @ 94' 7.625"@ 700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3870 7.52 331.22 3599.6 3901 7.38 331.92 3630.4 3934 7.19 331.45 3663.1 3965 6.96 330.25 3693.9 3997 6.51 329.27 3725.6 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.875" Halliburton Tri-cone 12044141 3x16 3525' 510' 8.43 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 536.9 @ 3735' 1.6 @ 3820' 96.8 45.2' FT/HR SURFACE TORQUE 0 @ 4035' 0 @ 4035' 0.0 0 AMPS WEIGHT ON BIT 27 @ 3613' 0 @ 3771' 9.7 20.2' KLBS ROTARY RPM 0 @ 4035' 0 @ 4035' 0.0 0 RPM PUMP PRESSURE 2054 @ 3658' 1435 @ 3721' 1769.9 1817.1' PSI DRILLING MUD REPORT DEPTH 4033' MW 9.8 VIS 49 PV 22 YP 20 FL 5.0 Gels 8/10/12 CL- 15000 FC 1/0 SOL 7.8 SD 0 OIL 0/91 MBL 12.5 pH 9.0 Ca+ 120 CCI MWD SUMMARY INTERVAL 3525' TO 4035' TOOLS Directional Module. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 81 @ 3747' 0 @ 3693' 12.0 TRIP GAS 210 CUTTING GAS 0 @ 4035' 0 @ 4035' 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 22187 @ 3746' 96 @ 3693' 2582.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 27 @ 3979' 0 @ 3774' 1.4 AVG 0 PROPANE (C-3) 0 @ 4035' 0 @ 4035' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 4035' 0 @ 4035' 0.0 CURRENT BACKGROUND/AVG 1.0/12 PENTANE (C-5) 0 @ 4035' 0 @ 4035' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SAND 50%, TUFFACEOUS CLAYSTONE 30%, AND CONGLOMERITIC SAND 20% . DAILY ACTIVITY SUMMARY TRIPPED IN HOLE TO 3525 Ft. AND CIRCULATED BOTTOMS/UP TWICE. ONCE ON BOTTOM COMMENCED DRILLING AHEAD. CONTINUED TO 4035 Ft. AND PULLED OUT TO DO A SHORT TRIP. PULLED OUT TO 3600 Ft. AND BEGAN TRIPPING BACK IN HOLE. WASHED AND REAMED PUMPED OUT AND WASHED AND REAMED BACK TO BOTTOM. AT PRESENT AT 3797 FT. MAX GAS WAS TRIP GAS OF 210 u AT 3600 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Penisnsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE July 17,2013 DEPTH 4730' PRESENT OPERATION Tripping out. TIME 01:05:00 YESTERDAY 4035' 24 HOUR FOOTAGE 695' CASING INFORMATION 13 3/8" @ 94' 7.625" @ 700' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4561 5.00 324.48 4286.33 4593 4.95 324.33 4318.21 4624 4.84 324.32 4349.09 4656 4.85 323.73 4380.98 4687 4.67 326.52 4411.87 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.875" Halliburton Tri-cone 12044141 3x16 3525 4730' 1205' 12.22 TD Well. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 614.8 @ 4378' 2.8 @ 4672' 80.9 55.2 FT/HR SURFACE TORQUE 0 @ 4730' 0 @ 4730' 0.0 0 AMPS WEIGHT ON BIT 33 @ 4195' 1 @ 4534' 13.3 27.5 KLBS ROTARY RPM 0 @ 4730' 0 @ 4730' 0.0 0 RPM PUMP PRESSURE 2252 @ 4218' 335 @ 4036' 1994.8 2009.8 PSI DRILLING MUD REPORT DEPTH 4598' MW 9.8 VIS 50 PV 21 YP 21 FL 5.0 Gels 1/12/15 CL- 15000 FC 1/0 SOL 7.8 SD 0.30 OIL 0/91 MBL 12.5 pH 9.2 Ca+ 160 CCI MWD SUMMARY INTERVAL 4035' TO 4730' TOOLS Directional Module GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 53 @ 4321' 0 @ 4089' 10.0 TRIP GAS 0 CUTTING GAS 0 @ 4730' 0 @ 4730.' 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 12402 @ 4476' 137 @ 4089' 1917.4 CONNECTION GAS HIGH 0 ETHANE (C-2) 43 @ 4476' 0 @ 4586' 2.7 AVG 0 PROPANE (C-3) 0 @ 4730' 0 @ 4730.' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 4730' 0 @ 4730.' 0.0 CURRENT BACKGROUND/AVG 2.0/10 PENTANE (C-5) 0 @ 4730' 0 @ 4730' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY TUFFACEOUS CLAYSTONE 50%, SAND 40%, AND CONGLOMERATE 10%. DAILY ACTIVITY SUMMARY PERFORMED A SHORT TRIP FROM 4129 Ft. TO 4035 fT. CIRCULATED BOTTOMS UP AND CONTINUED TO DRILL TO 4474 Ft. AND PERFORMED A SHORT 7 STAND TRIP AND BACK CIRCULATED BOTTOMS UP. CONTINUED TO DRILL TO 4730 Ft. AND CALLED T.D. CIRCULATED BOTTOMS UP AND PUMPED A SWEEP AROUND. THAN COMMENCED TRIPPING OUT. MAX GAS 53 u. AT 4321 Ft. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 18, 2013 DEPTH 4830' PRESENT OPERATION Tripping out of hole. TIME 00:00:00 YESTERDAY 4730' 24 HOUR FOOTAGE 100' CASING INFORMATION 13 3/8"@ 94' 9.625" @ 70' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4718 4.70 326.96 4442.77 4730 4.67 326.52 4454.73 4750 4.71 325.42 4474.66 4781 4.48 325.49 4505.56 4788 4.58 327.28 4512.54 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.875" Halliburton Tri-cone 12044141 3x16 3525' 4830 1305' 25.82 T.D. Well DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 192.7 @ 4771' 0.8 @ 4734' 52.3 21.6 FT/HR SURFACE TORQUE 0 @ 4830' 0 @ 4830' 0.0 0 AMPS WEIGHT ON BIT 27 @ 4730' 0 @ 4770' 5.2 0 KLBS ROTARY RPM 0 @ 4830' 0 @ 4830' 0.0 0 RPM PUMP PRESSURE 2256 @ 4769' 1857 @ 4823' 2141.3 1910.6 PSI DRILLING MUD REPORT DEPTH 4830' MW 9.8 VIS 50 PV 15 YP 19 FL 4.9 Gels 4/7/11 CL- 15000 FC 1/0 SOL 7.8 SD 0.30 OIL 0/91 MBL 12.5 pH 9.8 Ca+ 80 CCI MWD SUMMARY INTERVAL 4730' TO 4830' TOOLS Directional Module. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 53 @ 4780' 6 @ 4830' 14.8 TRIP GAS 186 CUTTING GAS 0 @ 4830' 0 @ 4830' 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 9627 @ 4780' 1186 @ 4830' 2679.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 4830' 0 @ 4830' 0.0 AVG 0 PROPANE (C-3) 0 @ 4830' 0 @ 4830' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 4830' 0 @ 4830' 0.0 CURRENT BACKGROUND/AVG 2.8/15 PENTANE (C-5) 0 @ 4830' 0 @ 4830' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SAND 70%, TUFFACEOUS CLAYSTONE 20%, CONGLOMERATE 10%. DAILY ACTIVITY SUMMARY DRILLED TO 4730' AND CIRCULATED BOTTOMS UP. PUMPED A SWEEP AND COMMENCED TO BACK REAM TO 4223'. PUMPED A DRY JOB AND PULLED OUT OF HOLE TO SHOE. STOPPED AND SERVICED RIG THAN TRIPPED BACK IN HOLE. FOUND A TIGHT SPOT AT 3365'. WASHED DOWN 60' AND RAN IN HOLE TO 4600'. WASHED TO BOTTOM AND DRILLED TO 4830'. CIRCULATED BOTTOMS UP AND COMMENCED TRIPPING OUT OF HOLE. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3173.00 REPORT BY HARRY E. BLEYS Aurora Gas LLC Kenai Peninsula, Alaska DAILY WELLSITE REPORT Nicolai Creek #14 REPORT FOR Shane McGeehan/David Willingford DATE Jul 19, 2013 DEPTH 4830.00000 PRESENT OPERATION TIME 24 hrs YESTERDAY 4830.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8"@94' 9.625"@700" 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 9.8 VIS 58 PV 18 YP 22 FL 4.9 Gels 5/9/17 CL- 15000 FC 1/0 SOL 7.8 SD 0.30 OIL /91 MBL 10.0 pH 8.9 Ca+ 240 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 Sand 70%, Tuffaceous Claystone 20%, and Conglomerate 10% DAILY ACTIVITY SUMMARY Pulled out of hole to 3030 Ft. Tripped back in hole to 4830 Ft. Circulated bottoms up and pumped a sweep while working the pipe. Commenced pulling out of the hole and laid down MWD directional tools. Cleaned up and serviced the rig. Rigged up Halliburton Logging unit. Started running in hole with wire-line logging tools. Logging run #1 still running down hole at report time. CANRIG PERSONNEL ON BOARD 3 DAILY COST $2773 REPORT BY HARRY E. BLEYS AURORA GAS NICOLAI CREEK #14 Daily Report Report for: Shane McGeehan David Wallingford Date: 07/20/2013 Time: 24 hrs Current Depth (MD): 3706.4 Current Depth (TVD): 0 Current Operations: 24 hr Footage (MD): 0 Tripped in hole to do cement job. . Drilling Parameters ROP: Current: - Max: - Torque: Current: - Max: - WOB: Current - Max: - RPM: Current: - Max: - PP: Current: - Max: - Lag: Strokes: - Time: - Surf-Surf: Strokes: - Time: - ECD: Current: - Max: - Mud Properties @ 13390 MW: 9.8 FV: 47 PV: 12 YP: 20 FL: 5.0 Gels: 4/9/16 Sol: 7.8 pH: 8.6 Cl -: 15000 Ca ++: 80 MW Change: Depth: From: To: Reason: Mud Loss event: Depth: Volume: Gas Data Ditch Gas: Current: - Max: Depth (MD/TVD): Avg BG : - Gas Events Depth (MD/TVD) TG C1 C2 C3 iC4 nC4 iC5 nC5 Trip Gas Conn. Gas (units above background) Gas Samples No. Depth (MD/TVD) TG C1 C2 C3 i-C4 N-C5 i-C6 n-C7 Lithologies: Current: Last 24 hrs: Operational Summary: Ran logging run #2 and #3. Logs showed dead well. Rigged down Halliburton Tools. Picked up drill pipe and tripped into hole. Circulated and conditioned mud while waiting on Schlumberger Cement Tools. Cleaned and serviced rig. Rigging up cement tools at present. Calibrations: Total gas and chromatograph tested and calibrated. Failures: (none) Daily Cost: $2373.00
