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1 Guhl, Meredith D (DOA) From:DOLFI, KIMBERLY <kim.dolfi@repsol.com> Sent:Thursday, August 30, 2018 12:57 PM To:Guhl, Meredith D (DOA) Subject:RE: Missing Qugruk 3 and 3A Isotube Analyses Attachments:RE: Qugruk 3 and 3A Isotube Samples for AOGCC Importance:High Hi Meredith, Thank you for the update on the Palm 01. I’ve sent it over to our geologist who was requesting it. Regarding the Qugruk 3 and 3A, we got word from our head of Operations: “The isotubes where collected but we never did any analysis.” I’ve attached her email response for your records. Did you receive the Isotube samples for these wells and/or do you need anything more from us since there was no analysis completed? I hope this helps. Please let me know if there is more you need from us. Thanks!! Kim Kim Dolfi, CPDA Well Data Specialist Petrotechnical Services - Houston 2455 Technology Forest Blvd. The Woodlands, TX 77381 Direct: 832.442.1705 Kim.dolfi@repsol.com repsol.com From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Tuesday, August 21, 2018 2:49 PM To: DOLFI, KIMBERLY Subject: Missing Qugruk 3 and 3A Isotube Analyses Hi Kim, Now I have a question for you. A geologist at another company was researching the Qugruk wells and discovered in the mudlogging reports that isotube samples were taken on Qugruk 3 and Qugruk 3A, however the AOGCC never received analyses for these samples. Can you assist me with this or suggest who I should contact at Repsol about the missing analyses? 2 Thank you, Meredith (below are pages taken from the mudlogging reports for both wells as backup to the question) Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, 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. Qugruk 3A ‐ 4 boxes of Isotubes sent out to Fugro for detailed analysis 3 Below is the prelim analysis from the mud logging report 4 5 boxes of isotubes sent out to Fugro for Qugruk 3 5 6 Qugruk 3 Isotubes to Fugro – as listed in the mud logging report 7 1 Guhl, Meredith D (DOA) From:ORTIN AGUILANIEDO, ANNA <aortina@repsol.com> Sent:Thursday, August 30, 2018 10:45 AM To:CUMMINGS, LUCINDA; MARTIN VICENTE, ALEJANDRO Cc:BONELLI, JAMES; DOLFI, KIMBERLY Subject:RE: Qugruk 3 and 3A Isotube Samples for AOGCC Hi Cindy The isotubes where collected but we never did any analysis. Let me know if you need anything else Regards Anna From: CUMMINGS, LUCINDA Sent: Thursday, August 30, 2018 1:39 PM To: ORTIN AGUILANIEDO, ANNA; MARTIN VICENTE, ALEJANDRO Cc: BONELLI, JAMES; DOLFI, KIMBERLY Subject: FW: Qugruk 3 and 3A Isotube Samples for AOGCC Importance: High Hi Anna and Alex, Can you please see the email attachment and information below regarding the Isotube Analysis that the State of Alaska is requesting? James and I looked through the information where we had access to the folders but didn’t see a clear match to what they were requesting. Do you know if this data was sent to the State of Alaska and if not, where the analysis would be for these wells? We can transmit it to the State of Alaska with the proper transmittals if we know where the analysis is to send them Thanks Cindy Cindy Cummings, PMP, CRM Exploration Petrotechnical Services 2455 Technology Forest Blvd. The Woodlands, Texas 77381 Cindy.Cummings@Repsol.com Direct: 832‐442‐1313 Cell: 281‐639‐0225 Our values: Safety • Passion • Results • Respect • Excellence • Teamwork • Honest Communication • 2 From: DOLFI, KIMBERLY Sent: Thursday, August 30, 2018 7:38 AM To: CUMMINGS, LUCINDA Cc: BONELLI, JAMES Subject: Qugruk 3 and 3A Isotube Samples for AOGCC Importance: High Good morning!! I got an email back from the AOGCC regarding some information on a different well…. And at the end she asked if we had any update on the Qugruk 3 and 3A isotube samples/analysis report? Any thoughts or news? For reference, I attached her original email… just in case. Thanks!! 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U a 0 C.) 0 V V Release of Confidential Data Coversheet Well Name: QUGRUK 3A PTD: 213-031 E-Set: 22656, 22657, 22658, 22659 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS via GeoLogs tab ✓ Confidential (incomplete)entry in Well Data List notes port to DigLogs via E-Set tab ■'/Scan labeled data (Apply OCR text recognition t7 Save to Well Log Header Scans V New"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: l)/is- al 3-b3/ Repsol Services Company 2455 Technology Forest Boulevard The Woodlands TX 77381 REP.101 To: AOGCC(Alaska Oil and Gas Conservation Commission) Meredith Guhl 333 West 7th Avenue,Suite 100 RECEI �/`E® Anchorage,Alaska 99501 RE: REPSOL 41,1►a.a7 MAY 0 7 2015 Lorenzo Villalobos/Juan Aluja % AOGCC jalujav@repsol.com, FAX 287-297-1773 /��°" 2455 Technology Forest Boulevard The Woodlands TX 77381 Reference: Qugruk-3A(PTD 213-031) Dear Meredith, As requested on the email of May 5,2015 Repsol Alaska is hereby submitting the data for the well Qugruk 3A, following the instructions of the regulation 20 AAC 25071 of the Alaska Oil and Gas Conservation Commission (AOGCC). Qugruk-3A Paper logs: • Qugruk 3A FngLog TVD(electronic file name: Qugruk-3A_EngLog_FINAL_TVD.pdf) • Qugruk 3A GasLog TVD(electronic file name: Qugruk-3A_GasLog_FINAL_TVD.pdf) c2 02Cv5g • Qugruk 3A MudLog TVD(electronic file name:Qugruk-3A_MudLog_FINAL_TVD.pdf) • Qugruk 3A PrLog TVD(electronic file name: Qugruk-3A_PrLog_FINAL_TVD.pdf) Please acknowledge receipt by signing and returning a copy of the transmittal letter (by postal mail, email or fax) to the attention of Repsol, Lorenzo Villalobos/Juan Aluja, 2455 Technology Forest Boulevard The Woodlands TX 77381. Date j` 6 � Si ned: IP Sig CC: Roberta Camuffo 05/06/2015 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, May 05, 2015 4:20 PM To: 'FERNANDEZ TORRENT, RICARDO'; 'VILLALOBOS VENCELA, LORENZO'; 'ALUJA VENERO , JUAN ANDRES'; 'caryn.sodden@repsol.com' Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA); Bender, Makana K(DOA) Subject: Qugruk 3A, PTD 213-031, Data Required Tracking: Recipient Read 'FERNANDEZ TORRENT, RICARDO' 'VILLALOBOS VENCELA,LORENZO' 'ALUJA VENERO,JUAN ANDRES' 'ca ryn.sodden @ repso l.com' Bettis,Patricia K(DOA) Davies,Stephen F(DOA) Bender,Makana K(DOA) Read:5/5/2015 4:20 PM Ricard, During my review of the data for Qugruk 3A, in preparation to release the well after 6/1/2015, I noted the following data still needs to be supplied for this well. The following logs paper logs are required: 1. Qugruk 3A EngLog TVD (electronic file name: Qugruk-3A_EngLog_FINAL_TVD.pdf) 2. Qugruk 3A GasLog TVD (electronic file name: Qugruk-3A_GasLog_FINAL_TVD.pdf) 3. Qugruk 3A MudLog TVD (electronic file name:Qugruk-3A_MudLog_FINAL_TVD.pdf) 4. Qugruk 3A PrLog TVD (electronic file name: Qugruk-3A_PrLog_FINAL_TVD.pdf) Please provide all paper logs by May 19, 2015. Please send all requested data to my attention. 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 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 Guhl, Meredith D (DOA) From: Shellenbaum, Diane P(DNR) Sent: Tuesday, May 05, 2015 2:04 PM To: Guhl, Meredith D (DOA); Decker, Paul L(DNR) Cc: Bettis, Patricia K(DOA); Davies, Stephen F(DOA) Subject: RE: Qugruk 3A, PTD 213-031, Extended Confidentiality? Hello Meredith, DOG has not received any request for extended confidentiality for Qugruk 3A. Thank you, Diane Diane Shellenbaum Petroleum Geophysicist Alaska DNR Div Oil and Gas wk(907)375-8241 cell(907)331-9678 Diane.Shellenbaum(aalaska.gov CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Department of Natural Resources(DNR),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 on unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the DNR is aware of the mistake in sending it to you,contact Diane Shellenbaum 907-375-8241 or diane.shellenbaum@alaska.gov. From: Guhl, Meredith D (DOA) Sent: Tuesday, May 05, 2015 10:56 AM To: Shellenbaum, Diane P (DNR); Decker, Paul L (DNR) Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: Qugruk 3A, PTD 213-031, Extended Confidentiality? Hello Diane, Has extended confidentiality been requested for Qugruk 3A, PTD 213-031,due for release after June 1, 2015? 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 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 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, May 05, 2015 10:56 AM To: Shellenbaum, Diane P(DNR); Decker, Paul L(DNR) Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: Qugruk 3A, PTD 213-031, Extended Confidentiality? Hello Diane, Has extended confidentiality been requested for Qugruk 3A, PTD 213-031,due for release after June 1, 2015? 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 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 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg 2 4E3 DATE: August 10, 2013 P. I. Supervisor `ter' j(% I FROM: John Crisp, SUBJECT: Well Site Inspections Petroleum Inspector Repsol E&P USA Qugruk #3A (PTD 213-031) August 10, 2013: I traveled to Repsol USA exploration drill sites Qugruk #6 (PTD 212- 192), Qugruk #1 (PTD 212-033), and Qugruk #3A (PTD 213-031) to perform location clearance inspections of permanent abandonments. Qugruk #3A's mounding looked perfect with no water or gas movement anywhere on location. Summary: Repsol USA Qugruk Exploration site inspections after permanent abandonment. Attachments: Photos 2013-0810_Lo c ati on_Qugruk-3 Aj c.docx Page 1 of 2 s 4 Location Inspection — Qugruk #3A (PTD 2130310) Photos by AOGCC Inspector J. Crisp 8/10/2013 2013-0810_Location_Qugruk-3Aj c.docx Page 2 of 2 RE C B E i) Repsol Services Company REPSOL 2001 Timberloch Place,Suite 3000 JUN 0 3 2013 The Woodlands,Texas,77380 AOGCC To: AOGCC(Alaska Oil and Gas Conservation Commission) Makana Bender,Natural Resources Technician 333 West 7th Avenue,Suite 100 Anchorage,Alaska 99501 RE: REPSOL t* • I►. Lorenzo Villalobos/Juan Aluja 0-11*.. jalulav@repsol.com,FAX 287-297-1773 w 2001 Timberloch Place,Suite 3000 The Woodlands,TX,77380 Dear Makana, In the data listed below, Repsol Alaska hereby is submitting the technical information of the well Qugruk#3A following the instructions of the regulation 20 AAC 25071 of the Alaska Oil and Gas Conservation Commission (AOGCC). 3 DVDs: - 1 DVD, containing Canrig's Mudlogging final deliveries-4V X. (e y 8 - 1 DVD,containing Schlumberger's LWD-Vision Services final deliveries 4/ 2-A 6 Y 7 - 1 DVD, containing Miscellaneous Well Data 2 Co )q° Paper Copies: - Mudlogging final plots✓�— —' - LWD final plots✓ �-- Extension Requests for following analysis/studies: - Isotubes analysis - Wireline Logging Data Please acknowledge receipt by signing and returning a copy of the transmittal letter (by postal mail, email or fax) to the attention of Repsol, Lorenzo Villalobos/Juan Aluja, 2001 Timberloch Place, Suite 3000,The Woodlands,TX, 77380. Date t V `�'^�- � i3 Signed: A�j CC: Roberta Camuffo ars _ � 3 � Repsol Services Company REPJOL 2001 Timberloch Place,Suite 3000 The Woodlands,Texas,77380 To: AOGCC(Alaska Oil and Gas Conservation Commission) Makana Bender,Natural Resources Technician 333 West 7th Avenue,Suite 100 Anchorage,Alaska 99501 RE: REPSOL 'kV , Lorenzo Villalobos/Juan Aluja 440°- jalujav@repsol.com, FAX 287-297-1773 2001 Timberloch Place,Suite 3000 The Woodlands,TX,77380 Dear Makana, In the data listed below, Repsol Alaska hereby is submitting the technical information of the well Qugruk #3A following the instructions of the regulation 20 AAC 25071 of the Alaska Oil and Gas Conservation Commission (AOGCC). 1 DVD: - 1 DVD,containing Schlumberger's Wireline Logging final deliveries. it 2 (,5-4 Paper Copies: - Wireline Logging final plots. — Please acknowledge receipt by signing and returning a copy of the transmittal letter (by postal mail, email or fax) to the attention of Repsol, Lorenzo Villalobos/Juan Aluja, 2001 Timberloch Place, Suite 3000,The Woodlands,TX, 77380. Date l(i) Signed: O CC: Roberta Camuffo RECEIVED MAY 31 2013 AOGCC REP1Ot May 30, 2013 Alaska Oil and Gas Conservation Commission 333 West 7`"Avenue, Suite 100 Anchorage, AK 99501 RE: 10-407 Well Completion Report: Repsol Qugruk#3A PTD 213-031 Dear Commissioner: Repsol hereby submits the 10-407 Well Completion Report for the permanent abandonment of Qugruk#3A, permit to drill 213-031. Qugruk#3A was spudded 4/2/2013, and a total depth of 10,546' was reached on 4/12/2013. Final wellbore abandonment was completed on 5/1/2013. Pertinent information attached to this report includes the following: 1. Form 10-407 Well Completion Report 2. Final Wellbore Schematic 3. Daily Operations Summary 4. Final Directional Survey Report Additional Geological information will be submitted separately. The AOGCC is requested to treat as confidential all information included. If you have any questions or require additional information, please contact myself at 281- 863-1618 or the technical contacts contained in the following pages. Sig: , r Bob Jones Drilling Manager Repsol USA • STATE OF ALASKA ALASKI VII_AND GAS CONSERVATION COMMISSiuN WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑✓ • Suspended[1] lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑✓ • GINJ ❑ WINJ ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12. Permit to Drill Number: tc•r3 Repsol USA Aband.: 5/1/2013 . 213-031 • 3/3 -/2, / 3.Address: 6.Date Spudded: 13.API Number: 2001 Timberloch Place,Suite 3000,Woodlands,TX,77380 4/2/2013 • 50-103-20664-01 4a. Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 1805'FEL, 1732'FSL,Sec.6,T11N, R6E, UM 4/12/2013 Qugruk 3A • Top of Productive Horizon: 8.KB(ft above MSL): 46 15. Field/Pool(s): 1010'FWL, 1378'FSL,Sec.31,T12N,R6E,UM ' GL(ft above MSL): 15 Wildcat • Total Depth: 727'FWL,2085'FSL,Sec.31,T12N,R6E, UM 9.Plug Back Depth(MD+TVD): 0 4b. Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 412876 y- 5972219 Zone- 4 10546'MD/7205'TVD ' ADL 391445, 391455 • TPI: x- 410853 y- 5977180 • Zone- 4 11.SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 410579 y- 5977880 Zone- 4 N/A LAS 282269 18.Directional Survey: Yes E No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 1080'MD/1080'TVD 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: GR, Res,Density,Neutron,NMR,UltraSonic 2708'MD/2707'TVD • J 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT. PULLED 20" 131# J-55 0 113 0 113 26" N/A 13-3/8" 68# L-80 0 2120 0 2120 16" Lead-1680 sx/Tail-397 sx N/A 24.Open to production or injection? Yes ❑ No 0 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): R 26. ACID, FRACTURE,CEMENT SQUEEZE,ETC. 5 3 ■ ■ �' ® Was hydraulic fracturing used during completion? Yes❑ No ❑ jEI) MAY 3 d 1 2013 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED AOGCC 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API (corr): Press. 24-Hour Rate . 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No Q • Sidewall Cores Acquired? Yes❑ No El • 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 JUN 10 2013 Form 10-407 Revised 10/2012 CONTINUED ON REVERSE Submit original only .)1���� �`jt5 -/3 i„...0„, j�S 4\1 G 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes 2 No• If yes, list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form, if needed,and submit detailed test information per 20 AAC 25.071. Nanushuk 3977 3817 Torok 6213 4955 HRZ Shale 8875 6316 Kup C 9297 6538 LCU 9322 6552 Alpine C 9647 6724 Lower Alpine/Uju 9665 6736 Nuiqsut 10070 6952 Formation at total depth: 10546 7205 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Michael Quick 907-317-2969 Email: robert.lones @ repsol.com Printed Name: Bob JAW& Title: Drilling Manager Signature: rit Phone: 281-863-1618 Date: 5/30/2013 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 REPSOL 2012-13 Explorat • Qugruk 3A / Final Wellbore Schematic REPJOL Confidential Rig 7ES RKB: 29' Q-3 Elevation: 17' f' H:: ,;....., 42 bbls 15.7 i ::I RKB to MSL 46' 26" Hole-00-1' : , ppg , :.1 I: •• i Permafrost cmt 20" 131# J55—►I ., a.. . ,.. :; ( i1 Horizon TVD y 13-3/8" CIBP @ +/- 280' � 16" Hole 12.1 ppg r KWM 37.5 bbls 15.8 ppg , 13-3/8" 68# L-80 BTC Class G J Casing @ 2120' MD I �- I I �� et'j 1 1 '1 12.1 ppg 1 / 13-3/8" Retainer ,, KWM ,"' @ +/- 2060' MD -Dy.., ' 3817' Nanushuk 153$ppg '? KOP @ 2708' MD .' Class G ," Build to 58 degrees y and held to TD j 4955' Torok 12.1 ppg - . KWM ,' O,\ , , 6316' HRZ 6 6538' Kup C 6724' Alpine ,.'Qs9°3 ,' 6952' Nuigsu�\SND Co .:: . C-> , 8-1/2" Hole TD @ Calc TOC 10546' MD / @ 8003' 7205' TVD Fish: 5-7/8" bit, 2000ft 4-1/2" Tubing, 640ft 5" HWDP, 1500ft 5" drill pipe A. Dial pp oO 2 yyI p,• d8 E 8 St J +{ O .. • M Z N O WN CO C O F Zp (9 F- 3 3 3 >j °Ny O F - - Q } U zN z`t 1ze `O z �w p0V F p d. n y: a e, e z • p c9 �Z/ � 2 Z�r71�W Z 03 NNOf ZNNN FzfW/!Z FC 'IQyWOZ iJ z4 �t�]I :U o ONW.OOf_ ONNN p NNro..� g P °d z WR 2 l ��y� >. I--.) a Op•-N 0aahul N,-000403 2 o0r-,0 ° AJ ta Z6 0 0 y��Q c El r! p R eia 8� 0 mQ 0,-CO C"In G ONS. G.-m100 T w—<(3W �: CW1 1.6, U5 Qp9t§ r^° WI- O (�,\`\�`�I to b Z 1-_,8_,>_xo �o pQ 42 v7O QO 1¢O,o (p6J oiM O t Op O WZV�1 V� 4Q-� �I ,1-A\g\- (- ', n • U Z JJTX Z JJ>X C•sCF_,-0 �� Z 0J OUJU om N 1 Q 6 — a /"\\ / 1\ 1, , C0I I a a 0 6� \ r W poop ti 9 a� oo• \ I 1Ilt J1 1 520a °Uf \ 1 s "''o1s °°F J , ii — 3„ 0. 90,...„,.. .., --, ,.. ! o \, rj� T �j�o 1 �1, aOr- I \\' O 9% ,\y =� 1- • L I\1/ i \ il ____ >,s,- j ...N. f .21 \� ' I \ ?)6 *1 ;'`f / s@p° ° r N \t I 1 26000 r —, l "J o �/ M J� / N200p00o \ / g 8 I a� i ; i °3 1 wz 1- p g . �� "I ? I � � o f R, t;(1 \ ( - c22 �j F-1-- x �Wp� O _..---,. 4.r,44,".,,„ • P . 4<,i u Q ,� U_ k V -.. PLJ .:.;";ri-i< N No Qugruk #3A Daily Operations Summary REPSOL API: 50-103-20664-01-00 Permit #: 213-031 Rig: Nabors 7ES CONFIDENTIAL Date and Footage Drilled as of 24:00 hours. Activity 1 April 2013 TD: 7500'; Mud Weight: 10.4; Viscosity: 56. Pickup 12-1/4"sidetrack BHA 0' and RIH. Wash to 2098'. 2 April 2013 TD: 7500'; Mud Weight: 10.4; Viscosity: 68. Wash through top kickoff plug- 153' no hard cement. Wash down to 2702' and find hard cement at bottom kickoff plug. Drill cement from 2702'to 2708'. Kickoff for Qugruk 3A at 2708' and drill to 2861'. 3 April 2013 TD: 7500'; Mud Weight: 10.4; Viscosity: 59. Continue drilling from 2861'to 129' 2990'. POOH with sidetrack BHA. Pickup 8-1/2" rotary steerable BHA. RIH to 2715'. 4 April 2013 TD: 7500'; Mud Weight: 10.4; Viscosity: 54. Continue RIH and wash to 1421' 2990'. Drill from 2990'to 4411'. 5 April 2013 TD: 6117'; Mud Weight: 10.4; Viscosity: 68. Drill from 4411'to 6117'. 1706' Circulate and condition. POOH for wiper trip and back ream from 6117'to 5262'. 6 April 2013 TD: 6967'; Mud Weight: 10.4; Viscosity: 51. Continue back reaming from 850' 5262'to 2945'. RIH from 2945'to 6117'. Drill from 6117'to 6967'. 7 April 2013 TD: 8015'; Mud Weight: 10.4; Viscosity: 64. Drill from 6967'to 8015'. 1048' Circulate and condition. Back ream out of hole from 8015' to 7626'. 8 April 2013 TD: 8015'; Mud Weight: 10.4; Viscosity: 59. Continue back reaming out of 0' hole from 7626'to 2100'. Circulate and condition. POOH and lay down BHA. Rig up for BOP test. Test BOPE to 250 psi low and 4000 psi high. AOGCC rep, Jeff Jones,waived witness of test. 9 April 2013 TD: 8156'; Mud Weight: 10.4; Viscosity: 78. Finish testing BOPE. Pick up '1492( lyl' BHA and run in hole to 7910'. Wash and ream from 7910'to 8015'. Drill from 1 t 8015'to 8156'. 10 April 2013 TD: 8660'; Mud Weight: 10.8; Viscosity: 62. Drill from 8156'to 8660'. 504' 11 April 2013 TD: 10053'; Mud Weight: 10.8; Viscosity: 60. Drill 8-1/2" hole from 8660'to 1393' 10053'. 12 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Drill from 10053'to TD of 493' 10546'. Circulate and condition. Back ream from 10546'to 9452', experience pack off at 9452', reestablish circulation and RIH to 9624'. Back ream from 9624'to 9497',work through various spots where packing off. Back ream from 9497'to 9210'working through various spots where packing off. 13 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Back ream from 9210'to 0' 8690', work through tight spot. Back ream from 8690'to 6736',work through various spots where packed off. Continue back ream from 6736'to 4950', work through various spots where packed off. 14 April 2013 TD: 10546'; Mud Weight: 11.0; Viscosity: 88. Pull out of hole from 4950'to 0' 3880'. Worked tight spot at 3880'. Back ream from 3880'to 3230'. Work through various tight spots. Pull out of hole from 3230'to 2120'. Monitor well —bubbles observed but no flow. Pull out of hole 15', observed swabbing. TIH 15' and circulate. 1055 units of gas observed while circulating bottoms up. Flow check—no flow or bubbles. Pump out of hole from 2120'to 979'. Monitor well—bubbles and flowing. Circulate while observing slow gain and gas cut mud of 9.8 ppg.Shut in well with 80 psi casing pressure. Casing pressure increase to 250 psi over 1 hour. Circulate through choke. Shut in well with casing pressure 260 psi. Circulate through choke.Strip in hole from 970' to 2109' maintaining 260 psi on casing. 15 April 2013 TD: 10546'; Mud Weight: 10.9; Viscosity: 52. Circulate through choke at 0' 2109', max gas of 1200 units. Shut in well with initial casing pressure 240 psi, bled to 30 psi, increased to 250 psi. Strip in hole from 2109'to 2708'. Circulate on choke, lost 65 bbls. Shut in well with 260 psi casing pressure. Circulate on choke while stripping in hole to 2710', obstruction observed. Shut in well and monitor casing pressure increase from 80 psi to 240 psi. Circulate on choke at 2708'—gas range from 200 to 1500 units seen. .Request to delay BOP test is granted by AOGCC rep, Louis Grimaldi. 16 April 2013 TD: 10546'; Mud Weight: 11.3; Viscosity: 57. Strip in hole from 2708'to 0' 2734'while circulating through choke.Wash from 2734'to 2753'while on choke and annular closed. Flow check—very slow flow. Shut well in with 200 psi on casing. Flow check—very slow flow. Ream from 2750'to 2770', had flow increase, shut in well with 180 psi on casing. Circulate on choke while increasing mud weight. Maximum of 1800 units of gas seen while circulating. 17 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 54. Circulate on choke at 2706' 0' while increasing mud weight to 12.0 ppg. Flow check—no flow. Circulate and increase mud weight to 12.5 ppg. Monitor well—static. Pump out of hole from 2707'to 2120'. Flow check—no flow. 18 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 60. TIH from 2120'to 2707'. 0' Attempt to circulate with losses of 1 bpm. Monitor well—loss rate of 1 bph. Attempt to circulate with losses of 1 bpm. Monitor well. Pump out of hole to 2109' and monitor well. Continue pumping out of hole. 19 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 21. Finish pulling out of hole and 0' lay down BHA. Rig up for partial BOP test. Test choke manifold and super choke to 250 psi low/4000 psi high,top pipe rams to 1500 psi, and annular to 250 psi low/2500 psi high. Partial BOP Test approved by AOGCC rep, Guy Schwartz. Run in hole with 4-1/2" tubing to 1969'. POOH from 1969'to 1148' and circulate reducing mud weight from 12.5 ppg to 12.2 ppg. Monitor well, max gas of 240 units. Run in hole with 4-1/2" tubing from 1148'to 2095'. 20 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 20. Circulate to reduce mud 0' weight from 12.5 ppg to 12.2 ppg, slow losses, max gas of 112 units. Monitor well,well dead. Run in hole with 4-1/2" stinger with 5" drill pipe to 2700', had losses.Circulate with 12.2 ppg mud weight. Wash from 2700'to 3131',working through various tight spots, loss rate of 20 bph. Slowed pump rate to slow losses and lost returns while pumping at 1 bpm. POOH to 3013' and work pipe. Circulate and reduce mud weight from 12.2 ppg to 11.8 ppg, max gas of 1550 units. 21 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 71. Monitor well—no flow. Wash 0' and ream from 2013'to 3500'. At 3500',the well started to flow and was shut in. Circulate through choke, initial casing pressure 60 psi, final casing pressure 175 psi. Circulate through choke with 12 ppg mud weight, with gas cut mud returns, max gas 1804 units. Circulate through choke,with losses, max gas 1093 units. Circulate through full open choke with 12 ppg mud, with losses, max gas 1140 units. Pump LCM pill,circulate through open choke, max gas 1600 units, with losses. 22 April 2013 TD: 10546'; Mud Weight: 12.0; Viscosity: 63. Open well and TIH to 3590', 0' well flowing, shut in annular. Circulate through open choke, minor losses. Shut in, initial casing pressure 40 psi, monitor well. Bleed 1 bbls, monitor well —well static.TIH from 3590' to 10426', wash to 10546'.Tight hole at 10467', work through. Circulate and reciprocate well at 10513', max gas of 2158 units, shut in. Circulate well through open choke, max gas 2300 units. Stopped pumps, monitor well. 23 April 2013 TD: 10546'; Mud Weight: 12.0; Viscosity: 72. Circulate bottoms up, max gas 0' 2330 units. Monitor well—static. Rig up cement equipment, and pump 136 bbls (658 sx) 15.8 ppg Class G cement, with full returns throughout. Rig down cement equipment.Attempt to pull out of cement and stuck at 10383'. , Monitor well. Rig up wireline and RIH with free point, unable to calibrate, POOH. 24 April 2013 TD: 6243'; Mud Weight: 12.0; Viscosity: 72. RIH with CBL, unable to pass 0' 7800' (ID change), POOH. RIH with 1-3/4" severing tool to 7743', fire—no indication of firing. POOH and confirm tool had fired. Work pipe to free without success. RIH with severing tool to 6243',fire—no indication of firing. Cel-/( 3 )3-18y POOH and confirm tool had fired. Rig down wireline. Make up top drive, establish circulation, work pipe until free. Circulate, max gas of 2200 units seen. Top of fish at 6243' MD. Bottom of fish at 10383',Fish description: 5-3/4" bit, 2000'4.5"tubing, 640' 5" HWDP, 1500' 5" drill pipe. 25 April 2013 TD: 6243'; Mud Weight: 12.1; Viscosity: 69. Flow check—static. POOH to 0' 5044'. Pump 40 bbls hi-vis pill. POOH to 4950'. Rig up cement equipment, pump 55 bbls (265 sx) 15.8 ppg class G cement,with full returns throughout. Rig down cement equipment. POOH to 3810' and circulate drill pipe clean. Lay down drill pipe while WOC. Circulate at 3790'; wash down to 4289', looking for top of cement. 26 April 2013 TD: 4212'; Mud Weight: 12.1; Viscosity: 69. Continue washing down to 0' 4950'with no indication of cement. Wash down to 5150',spot 20 bbls hi-vis pill. Pull up to 4950', rig up cement equipment. Pump 73 bbls (354 sacks) 15.8 ppg class G cement,with full returns throughout. Rig down cement equipment. POOH to 3220' and circulate drill pipe clean. Rig up BOP test equipment and function test hydril, pipe rams, and kill and choke HCR valves as per AOGCC rep,John Crisp. Continue to WOC while circulating. Wash down from 3230'to 4164', set down 10k lbs then washed through. POOH to 4161',WOC. Wash down from 4161'to 4177'and set down 10-15k lbs on hard cement,tag 3 times.Tag witnessed by AOGCC rep,John Crisp. POOH, strapping pipe. Corrected tag depth of plug at 4212' MD. 27 April 2013 TD: 1810'; Mud Weight: 12.1; Viscosity: 69. Make up 13-3/8"cement 0' retainer on drill pipe and RIH to 2060'. Set retainer, pulul p ander back down with 50k lbs to ensure set. Sting into retainer and attempt to establish injection, unsuccessful. Unsting from retainer, attempt to circulate, stinger plugged. Pressure up to 2000 psi to unplug stinger, circulate pipe volume. Sting back into retainer, unable to pump through. Unsting from retainer, rig up cement equipment. Pump 37.5 bbls (181 sacks) 15.8 ppg class G cement. Approval to forgo squeezing cement below retainer granted by AOGCC rep, Guy Schwartz. Rig down cement equipment. POOH to 1430' and circulate drill pipe clean. POOH, laying down drill pipe. Pressure test cement and retainer to 2000 psi for 30 minutes—god. Pressure test witnessed by AOGCC rep,John Crisp. Make up 13-3/8" bridge plug on drill pipe and RIH to 280'. 28 April 2013 TD: 0'; Mud Weight: 12.1; Viscosity: 71. Set bridge plug at 280', pull 0' up/shear off, and set back down with 10k lbs to ensure set. POOH with running tool. TIH to 280', rig up cement equipment. Pump 42 bbls (254 sacks) 15.7 ppg Permafrost cement, rig down cement equipment. POOH laying down drill pipe. Flush and clean BOP stack. Begin nipple down of BOPE. 30 April 2013 TD: 0'; Continue demob. Waiting for cement to harden. 0' 1 May 2013 TD: 0'; Continue demob. Weld abandonment marker cap on 20" casing, 0' AOGCC inspector Jeff Jones witnessed operations. 4 q m O nn1 2 11 Na tomo, mstgmts mt�m°'n7p0 vs pp mm �' 780 R $n INtn'mv, mil E,s:E �,�C" t7M<^ -a 8i- m m^4^Sl m `c Mss Rein V18n8n8g 'n78F77R1n8n`7&n gogo r8SE SgoSn gS a .2-2p-p2-.2p nr „p p nn pppp pp 22222 022222 NNin 0001E 2222 u2f 22222 2222 224010022 2m 2 f1 a (p�N VO1VV00n1 mamY EOE 1��Nf0n 0.���Onnn NNEI F AMR�j N m NYi tIR t2n h ER ° m�g0+0! 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J'i rout O \C \ � :g \ Q o z ]k « ) 2£ -§# co) !E) \ =\r / k` / k 2 $ J « k)( Cr) % k J & $ | / > �§ - 7 i I cU { ° / Lit ƒ\ ` {�\.,�� - 3 f § . o - a� k )k) />F 7 ! kkg{ k7 0 re 44a 0 (� z Lai ■ .. ) ) a *` )\ ) ;« /) ° 9 co Ea # % t / \ \ / REPlOL r• Schlumberger WELL FIELD STRUCTURE Qugruk#3 and Qugruk#3A North Slope Exploration Qugruk#3 Lgnetc Para tern Salaam Location NAD27 Alasla State Plane.ZOM 09.US Feet Miscellaneous MaOel "L7 41'20'; Do 80836 Date- February 18,2013 Lot N 7020 2.216 Northing: 3972219.0118US Gr1COrn'.-0668' Sbt 0.3 Scenario 10 TVD Ret. RKB(988 aSove MSL) Mag Dec '9664 FS. 5TS7SBnT UM: W150 42 24436 EasOn9: 4128]800 WS Scab Fad:099990862 P 0495la3 6,Date Mar414,2013 -4000 -3000 -2000 -1000 0 1000 2000 Qugruk#3A Qu• k#3A See -014 • 5000 > • 5000 REP13 Nortflem Polyg• 4000 4000 3000 3000 A A A z 2000 ? 2000 • 0 a U (I) 1000 1000 20"Conductor 13-3/V Csg Tie-In survey 0 RTE.- 0 WRP -1000 • -1000 • • Qugruk#3 -2000 -2000 • Qugruk#3 Scenario-12 -4000 -3000 -2000 -1000 0 1000 2000 «< W Scale= 1:1000(ft) E >>> • REP-!OL iiiiii— Schlumberger STRUCTURE Qugruk#3 and Qugruk#3A North Slope Exploration Qugruk#3 Magnetic Parameters Surface Location NAD27 Alaska State Plane,Zone 04,US Feet Miscellaneous Mode 50052012 Dio. BO 838` Date February 16,20,3 Let: N 7020 2216 Ncdkry: 5972219.000US Gr4Conv-0666' Slot: 0-3 Scenario 10 TVD Ref: RI<B(46ealzans14, Mag Dec: 19664- FS 5757560 Lon. W150 92 24.436 Eastlrlg: 41287600M1U5 Scale Fact.099990662 Ran'. Qugrul03 SNy Date,March14,2013 -500 0500 f Qa ruk#3 • �r Qugruk#3 Scenario 12 Qugruk#3A Qugruk#3A Scenario 14 13.3/8''Csg 0 1500 3000 CD -2ouu a LSUU 0 io 0 • 0 u 0) Tie-In survey RTE 76 U WRP Cn o 20"Conductor H 3000 3000 1500 1500 Qugruk#3A Scenario 14 Qugruk#3 ,41- Qugruk#3A Qugruk#3 Scenario 1? 13-3/8"Cog -500 0 500 Tie-In survey 3000 \.ertical Section(ft)Azim=172.14°Scal4=1:500(ft) Origin 2 0 N/-S,0 E/-V 3000 O 0 ii 4500 4500 m 3 o •O 6000 - 6000 • Qugruk#3A Scenario 14 Qupu.t' 7500 •ugruldi3A e - 7500 9000 Qugruk#3 Scaharto 12 9000 -4500 -3000 -1500 0 1500 3000 • Vertical Section(ft)Azim=172.14°Scale= 1:1500(ft) Origin=0 N/-S,0 E/-V • .. 041,1141Th 4 .......... .., # . , :N.(..%, )i ' , N 1 ,f1 i r 1 . 1 .. 1 . ) I i I ( 4 i ' i\ j i'Z' I \ 1 1 4 ‘`) L I 1 i j ) i f • ." 1.4. '4,,,,- ' — , e •-, 4 , , • :4," -,,. ,, ,j f lit A , r I I NAt 04 F h • .,. • 1 I "t ,, (..r t,- , 4 ) ' I "' e ,4 ' i 1 it•-- 4; i )r Th'-'-i C ; ' e ' : ' , PT tt. , 0 i ) . ., ) , i ,, . . . . , 1 ,. •-•,. .,,F , C) 1/4.. L - -) •" b4. ',, . k', ,.. • " : .il'• ' ,•••• .....ire. . • ,.., a ,e,,'"',.• te ( . , •,., ‘ .. • rt14''• 4,-.:1: . , * . ,.,, ....t ‘ ,„,,..,...'4.74,,,.•4 ' t -• — , •,,,,,..,ri ,...,. - , .4,,,,,,,34. -v..'.•' • :, - ... . . , r• . , . • .. . • • • • liz s nalY MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg 'Cae„7 614,, DATE: May 1 , 2013 P. I. Supervisor FROM: Jeff Turkington SUBJECT: Surface P&A Petroleum Inspector Qugruk #3A Repsol USA PTD 2130310 Sundry #213-031 5/1/2013: Plug and Abandonment of Qugruk #3A Summary: Upon my arrival the well's 20" conductor casing was filled with cement to about 1" of the cut off casing top edge, which was approximately 10 ft. below the top of the well cellar. From the well cellar's top there was another 2' to the ice pad's surface at grade. In preparation for welding the abandonment cap I had the welder bounce a steel bar a few times off the cement's surface to verify that it had set hard. I witnessed the welding of the abandonment cap. The well cellar will need to be removed for final abandonment. Attachments: Photos (4) 2013-0501_Surface_Abandon_Qugruk-3 AJj t.docx Page 1 of 2 k Surface Abandonment - Qugruk #3A (Repsol) Photos by AOGCC Inspector J. Turkington 5/1/2013 V '... .:i 1.' 15 l INglikt IF : • 101OPE RAIOR E P USA 1' 1 /ELL NAE s► i G&aA ,4PE#5010�,3,�?0 x.14-00—Di s Checking hardness Abandonment cap ID information / Welding in progress Completed cap 2013-0501 Surface Abandon Qugruk-3Ajt.docx Page 2 of 2 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg let? Sh't3 DATE: April 27, 2013 P. I. Supervisor FROM: John Crisp, SUBJECT: Permanent Abandonment Petroleum Inspector Repsol USA Qugruk #3A PTD 213-031 April 25, 2013: I traveled from Repsol's Q6 to Q3 to witness abandonment plug tag as per 20 AAC 25.112. Cement bench sample was soft and had no integrity after eight hours. April 26, 2013: Tag was attempted while circulating @ 2 bpm with 80 psi DPP. Washed cement from 4097 ft MD to 4950 ft MD with no indication of cement in the hole. The WSL stopped twice and attempted to tag cement and CBU to see contaminated mud or cement at the shakers, no success. I discussed the plug failure with AOGCC Senior Petroleum Engineer Guy Schwartz. Decision was made to require Repsol to set a plug with integrity and to have the plug tag witnessed by AOGCC Petroleum Inspector. I traveled late night from Repsol Q6 to Q3 to witness abandonment plug tag. Rig was circulating at 4150 ft MD upon my arrival. I witnessed wash down while circulating at 2 bpm with 120 psi DPP. Cement stringer was tagged at 4164 ft MD and I required them to work thru stringer with 10K weight on string. Repsol's plan forward was to wash to 4175 ft MD and wait two hours before proceeding to TOC. Washed from 4175 ft MD to 4177 ft MD where they tagged hard cement. I required three tags, 10K — 10K — 15K, for verification of plug's integrity. Cement stringers above and controversy over first plug tag were reasons to require more weight on plug for verification. April 27, 2013: I witnessed Nabors 7ES POOH after hard plug tag at estimated 4177 ft MD. They had not been out of the hole since blowing apart drill string after bottom plug. This witness was required to verify TOC for abandonment plug. There were 24 stands of clean drill pipe racked on the Drillers side of rig floor; I requested they rack pipe on the off Drillers side of the floor that had been cemented thru three times and with two explosive charges set off in the string for inspection/measurement. Theory being that I could witness POOH with junk pipe 2013-0427 Plug_Qugruk-3Ajc.docx Page 1 of 3 and the clean pipe would be available to set cement retainer at the bottom of surface casing for cased hole open hole segregation abandonment plug. Pipe tally was within 10' of the estimated drill pipe measurement. I told Repsol's WSL that I would not witness RIH with cement retainer to 2060 ft MD and the subsequent cement job thru retainer. My intention was to attempt to sleep from 0300 hrs to 0600 hrs and then drive to Q6 to witness their abandonment plug. Next required witness for Inspector on this well abandonment was casing test. When I arrived on Q6 I requested they look at morning report for Q3 to check on status of casing test. Their morning report stated that they RIH with retainer and had no success circulating thru retainer. They did however manage to circulate thru the junk drill pipe and receive permission from AOGCC Anchorage to just cement on the top of the retainer, not thru it for cased hole open hole segregation plug. Qugruk #3A surface casing test: Retainer was set at 2060 ft MD and cement was laid on top of the retainer to an estimated depth of 1752 ft MD. Pressure test performed from blind rams to 1752 ft MD estimated TOC. Mud weight was 12.1 ppg from estimated TOC to blind rams. 1.75 bbls pumped to achieve 2064 psi test pressure. Test pressure stabilized from 2064 psi down to 2027 psi after 15 minutes. Further stabilization from 2027 psi down to 2014 psi was witnessed after 30 minutes. Good test no problems witnessed. I told the WSL that they had permission to complete their P&A and an Inspector would be required to verify hard cement in all casing strings prior to installation of marker plate. Seems as if this was ignored along with most suggestions because they continued to notify Inspection Group for permission to continue P&A. Summary: I witnessed plug tag at 4177' MD and successful surface casing test on Repsol's Q3A Exploration well. Attachments: Photo of blasted apart drill pipe joint 2013-0427_P lug_Qugruk-3 A_j c.docx Page 2 of 3 Failed Drill Pipe—Qugruk #3A (Repsol) Surface Abandonment Nabors7ES Photo by AOGCC Inspector J. Crisp 4/27/2013 4.7 • S r i , .... ...4 . , . , ., il _ „ . , ,,, oi , _ . 41, 4 I l 2013-0427_Plug_Qugruk-3A_jc.docx Page3of3 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Saturday, April 27, 2013 8:19 AM To: quick, michael (ext) Cc: ysa, rick (ext); dial, amanda (ext);JONES, ROBERT; q3coman.repsol@gmail.com; field.super.alaska.repsol@gmail.com; Regg, James B (DOA); Crisp,John H (DOA) Subject: Re: Repsol Qugruk-3A PTD 213-031 Abandonment Up Date Mike, As per email below you have approval to set cement above retainer and forgo pumping cement below into OH. Followed approved sundry after that step... Guy Schwartz AOGCC Sent from my iPhone On Apr 27, 2013,at 7:19 AM, "quick, michael (ext)" < nichael.quick@servexternos.repsol.com>wrote: Guy-- Per our conversation, on the P&A of Qugruk#3A, we set the 13-3/8" cement retainer at 2060',and verified the set with 20,000+weight set down witnessed by AOGCC inspector John Crisp. We have attempted to establish circulation below the cement retainer twice, and have pressured up to 2,000 psi with no success to inject below the retainer. We are able to circulate above the retainer once we unsting from the retainer. You gave verbal approval to proceed with the P&A per the approved sundry 313-184, by spotting 38 bbls (250')of cement on top of the retainer, and pressure testing the cement and casing to 2000 psi and charting for 30 minutes. We will give notice to the AOGCC inspector of the pressure test to witness. For your update,the second open hole plug that was set from 4950'to 4150'was tagged at a corrected strap depth of 4212' (once we strapped out of the hole), and was tagged three times with 15,000 lbs while circulating, and the tag was witnessed by AOGCC inspector John Crisp. The required TOC for this plug was 4390', as the top of the Nanushuk is 4490'. Please confirm your verbal approval by email for our records at your convenience. Regards, Mike 317-2969 From: Q3 Company Manailto: 3coman.re sol a� maii.a; P Y [ g P � 9 ] Sent: Saturday, April 27, 2013 6:14 AM To: , i.aogcc.nr. �!"^F "_ al. cka.gov; Ogclnspector (DOA sponsored); quick, michael (ext); jim.regg@alae ; Crisp, John H (DOA) Cc: ysa, rick(ext); flynn, tim (ext) Subject: Repsol Q-3A Abandonment Up Date Dear Sirs: Currently,we have our 13 3/8" Baker cement retainer set,verified by setting weight on it at 2060'.We are now trying to establish an injection rate, prior to pumping cement below it and setting cement on top of it as per abandonment plan. Thank you, Garland Goodwyn, Repsol Company Man,685-3211. 2 Regg, James B (DOA) Zt310 From: Regg, James B (DOA) Sent: Thursday, April 25, 2013 12:43 PM To: Q3 Company Man Cc: DOA AOGCC Prudhoe Bay; quick, michael (ext); field.super.alaska.repsol@gmail.com; Schwartz, Guy L (DOA); quick, michael (ext) Subject: RE: Repsol Q-3A P &A Up Date AOGCC must be present for the tag. You may run in the hole but may not proceed within 100 feet of the estimated top of cement on 2"d plug without an AOGCC Inspector present. We have 1 Inspector that has been working diligently with Repsol at 01, Q3A, and 06 during the past 24 hours to accomplish final P&A work on these very challenging wells. I expect Repsol's cooperation in accommodating our witness of these critical operations. Jim Regg Supervisor, Petroleum Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-7934236 From: OgcInspector(DOA sponsored) Sent: Thursday, April 25, 2013 8:11 AM To: Q3 Company Man Cc: DOA AOGCC Prudhoe Bay; Regg, James B (DOA); quick, michael (ext); field.super.alaska.repsol©gmail.com Subject: Re: Repsol Q-3A P &A Up Date Thank you for the progress report. As stated last night this plug tag is high priority for AOGCC witness. I will be on one of the wells, my phone is hit or miss.Thanks John Crisp Do not reply directly to this e-mail or doa.Ogc.inspector@Alaska.gov Please reply to AOGCC.inspectors@Alaska.gov or Doa.AOGCC.prudhoe.bay@Alaska.gov Alternate contact numbers 907-659-2714(NS office) 907-793-1236 (Jim Regg) On Apr 25, 2013, at 8:05, "Q3 Company Man" <g3coman.repsol@gmail.com>wrote: Dear Sirs: We spotted out second abandonment plug with the bottom of the tail pipe at 4950' with CIP at 0730 hours. We will be waiting on cement to tag plug. Thank your, Garland Goodwyn, Repsol Co. Man, 685-3211. 1 s � Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, April 23, 2013 9:03 PM To: quick, michael (ext) Cc: Q1 Company Man <glcoman.repsol@gmail.com> (glcoman.repsol@gmail.com); field.super.alaska.repsol@gmail.com;ysa, rick (ext);flynn,tim (ext); dial, amanda (ext); JONES, ROBERT Subject: Re: Repsol Qugruk#3A P&A Update (PTD 213-031) Mike, Plan as outlined below is approved. Once drillpipe is severed There is no need to tag the tubing stub and you can go directly to placing second balanced plug over Nanushak sand. Regards, Guy Sent from my iPhone On Apr 23, 2013, at 5:00 PM, "quick, michael (ext)" <michael.quick@servexternos.repsol.corr,>wrote: Guy— Per our discussion, on Qugruk#3A(PTD 213-031), we washed to 10,526'and circulated the well with 12 ppg mud. We pulled up to 10,420' and spotted a 136 bbl cement plug (15.8 ppg class G), underdisplacing by 4 bbls. There were full returns with no losses during the cement job. After pumping the cement, while attempting to POOH,the overpull after pulling 40' was over 100,000 lbs over, and the decision was made to stop POOH. The BHA in the hole is: 5-3/4" bit with a float, circ sub, 2000'of 12.6#/ft tubing, 638' of 5" HWDP, and 5" DP to surface. Based on a 10%washout factor in the 8-1/2" hole, the top of cement is at a calculated +/-8003' in the annulus and +/-8650' inside the abandonment string. The required TOC per the approved sundry was +1-9030'. The plan forward is to back off or sever the work string as deep as we can get, pull up to 4950' and set the second abandonment cement plug per the approved sundry 313-184. Please let me know if you have any questions or need additional information. Regards, Mike <imaee001.&if> Michael Quick <imaee002.eif> imaee003.eif> Alaska D&C operations Team Lead Repsol E&P USA, Inc. 3800 Centerpoint Dr.Suite 400 Anchorage,AK 99503 Tel.:907 375 6933 /Cel:907 317 2969 michaeI.quick@servexternos.repsol.com <image004.gif> 2 i Memo REPlOt Date: 4/22/2013 To: Guy Schwartz and Jim Regg AOGCC,Anchorage,AK 99501 907-793-1226 CC: Robert Jones, Rick Ysa,Tim Flynn From: Michael Quick, Repsol RE: BOPE Use Summary Report—Qugruk#3A, Permit#: 213-031 CONFIDENTIAL Dear Sirs: At approximately 6 am on Sunday,April 21, 2013,the annular preventer was closed due to well flow on the Qugruk#3A exploration well. The AOGCC Inspectors on the North Slope were notified immediately of the shut in. Below is the information required from AOGCC Industry Guidance Bulletin No. 10-003. Date/Time of BOPE Use: At approximately 6 am on Sunday,April 21,2013,the annular preventer was closed due to well flow. Well/Location/PTD Number: Qugruk#3A, Permit#:213-031,Colville Delta area, North Slope,AK. Rig Name: Nabors Rig 7ES Operator Contact: Michael Quick, Repsol Anchorage office—907-375-6933 Operations Summary, including events leading up to BOPE use: Date Activity 19 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 21. Finish pulling out of hole and 0' lay down BHA. Rig up for partial BOP test. Test choke manifold and super choke to 250 psi low/4000 psi high,top pipe rams to 1500 psi, and annular to 250 psi low/2500 psi high. Partial BOP Test approved by AOGCC rep,Guy Schwartz. Run in hole with 4-1/2"tubing to 1969'. POOH from 1969'to 1148' and circulate reducing mud weight from 12.5 ppg to 12.2 ppg. Monitor well, Page 1 of 2 s J max gas of 240 units.Run in hole with 4-1/2"tubing from 1148'to 2095'. 20 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 20. Circulate to reduce mud 0' weight from 12.5 ppg to 12.2 ppg,slow losses,max gas of 112 units.Monitor well,well dead.Run in hole with 4-1/2"stinger with 5"drill pipe to 2700',had losses.Circulate with 12.2 ppg mud weight.Wash from 2700'to 3131',working through various tight spots,loss rate of 20 bph.Slowed pump rate to slow losses and lost returns while pumping at 1 bpm.POOH to 3013'and work pipe. Circulate and reduce mud weight from 12.2 ppg to 11.8 ppg,max gas of 1550 units. 21 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 20. Monitor well—no flow.Wash 0' and ream from 2013'to 3500'. At 3500',the well started to flow and was shut in.Circulate through choke,initial casing pressure 50 psi,final casing pressure 175 psi.Circulate through choke with 12 ppg mud weight,with gas cut mud returns. BOPE Used: Annular preventer and Choke. Reason for BOPE Use: Well was flowing,gas cut mud returns at surface,observing a steady gain. Actions Taken/To be taken: The last full BOPE test was completed at 5:30 am on 4/9/2013, and the test witness was waived by the AOGCC inspector Jeff Jones. The annular,top pipe rams, and the choke were tested on 4/19/2013, prior to running in the hole with a 4-1/2" tubing stinger on 5" DP to start the permanent abandonment of the well per the approved sundry number 313-184. The partial BOPE test was approved by Guy Schwartz,AOGCC,via email on 4/18/2013. If you have any questions or require additional information, please contact Rick Ysa at 281-844- 5767,or myself at 907-317-2969. Sincerely, Michael Quick Repsol Alaska D&C Engineering Team Lead Page 2 of 2 %t ntle 34 Regg, James B (DOA) M2(50-310 3io From: quick, michael (ext) [michael.quick@servexternos.repsol.com] Sent: Monday, April 22, 2013 8:00 AM To: Schwartz, Guy L (DOA); Regg, James B (DOA); DOA AOGCC Prudhoe Bay Cc: ysa, rick(ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: RE: BOPE Use Summary Report- Repsol Qugruk#3A (PTD 213-031)April 21, 2013 event Correction in the body of the email below I stated Qugruk#6—the email title and report is correct as the well is Qugruk #3. I apologize for the typo. Mike From: quick, michael (ext) Sent: Monday, April 22, 2013 7:54 AM To: 'Schwartz, Guy L (DOA)'; Regg, James B (DOA) (jim.regg@alaska.gov); DOA AOGCC Prudhoe Bay (doa.aogcc.prudhoe.bay@alaska.gov) Cc: ysa, rick (ext); 'field.super.alaska.repsol@gmail.com'; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: BOPE Use Summary Report- Repsol Qugruk #3A (PTD 213-031) April 21, 2013 event Guy— Attached is the BOPE Use Summary Report for the well control event that happened on April 21, 2013, for the Repsol exploration well, Qugruk#3, PTD 213-031. ( (p_A) Please let me know if you need further information on this matter. Regards, Mike From: quick, michael (ext) Sent: Friday, April 19, 2013 2:11 PM To: 'Schwartz, Guy L(DOA)'; Regg, James B (DOA) (iim.reqg@alaska.gov); DOA AOGCC Prudhoe Bay (doa.aogcc.prudhoe.bav@alaska.gov) Cc: ysa, rick(ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: BOPE Use Summary Report- Repsol Qugruk #3A (PTD 213-031) Guy— Attached is the BOPE Use Summary Report for the well control event that happened on April 14, 2013, for the Repsol exploration well, Qugruk#3, PTD 213-031. Please let me know if you need further information on this matter. Regards, Mike 1 From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent:Thursday, April 18, 2013 10:46 AM To: quick, michael (ext) Cc: ysa, rick (ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT; Regg, James B (DOA) Subject: RE: BOP test - Repsol Qugruk #3A (PTD 213-031) Mike, The Commission will require you to test the well control equipment used ( annular and choke manifold at minimum) before RIH with stinger. The Commission will waive the full BOP test.This should be a fairly quick turnaround and get you back in the wellbore in a timely manner. Per 20 AAC 25.035(e)(10)(C) Also per guidance document 10-03 the Commission requires a complete report of the well control incident. We have been getting daily reports via email but a summary should be submitted of the entire event . http://www.doa.alaska.gov/ogc/bulletins/bul 10-03.pdf Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: quick, michael (ext) [mailto:michael.quick@servexternos.reosol.com] Sent: Thursday, April 18, 2013 10:29 AM To: Schwartz, Guy L(DOA) Cc: ysa, rick(ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: FW: BOP test- Repsol Qugruk #3A (PTD 213-031) Guy— On Qugruk#3A, Repsol has circulated 12.5 ppg mud from +/-2700' to surface, and the well is static at this time. As we discussed, Repsol requests to POOH with the rotary steerable drilling BHA, and RIH with a 2000' stinger of 4-1/2" tubing on drill pipe to abandon the Qugruk#3A well bore per the approved sundry, without testing the BOP prior to RIH. Although the well is currently static, Repsol does not believe it is in the best drilling practice to be out of the hole for any longer than necessary due to the well control events that have happened over the past several days. Please let me know if you need more details on this forward plan. Regards, Mike Michael Quick Alaska D&C Operations Team Lead / Repsol E&P USA, Inc 3800 Centerpoint Dr.Suite 400 Anchorage,AK 99503 Tel.:907 375 6933 /Cel:907 317 2969 ozsdis laillir- michael.quick(a�servexternos.repsol.com RENT©! 2 Memo REPJOL Date: 4/22/2013 To: Guy Schwartz and Jim Regg AOGCC,Anchorage,AK 99501 907-793-1226 CC: Robert Jones, Rick Ysa,Tim Flynn From: Michael Quick, Repsol RE: BOPE Use Summary Report—Qugruk#3A, Permit#: 213-031 CONFIDENTIAL Dear Sirs: At approximately 6 am on Sunday,April 21, 2013,the annular preventer was closed due to well flow on the Qugruk#3A exploration well. The AOGCC Inspectors on the North Slope were notified immediately of the shut in. Below is the information required from AOGCC Industry Guidance Bulletin No. 10-003. Date/Time of BOPE Use: At approximately 6 am on Sunday,April 21, 2013,the annular preventer was closed due to well flow. Well/Location/PTD Number: Qugruk#3A, Permit#: 213-031,Colville Delta area, North Slope,AK. Rig Name: Nabors Rig 7ES Operator Contact: Michael Quick, Repsol Anchorage office—907-375-6933 Operations Summary, including events leading up to BOPE use: Date Activity 19 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 21. Finish pulling out of hole and 0' lay down BHA. Rig up for partial BOP test. Test choke manifold and super choke to 250 psi low/4000 psi high,top pipe rams to 1500 psi,and annular to ✓ 250 psi low/2500 psi high. Partial BOP Test approved by AOGCC rep,Guy Schwartz. Run in hole with 4-1/2"tubing to 1969'. POOH from 1969'to 1148' and circulate reducing mud weight from 12.5 ppg to 12.2 ppg. Monitor well, Page 1 of 2 max gas of 240 units. Run in hole with 4-1/2"tubing from 1148'to 2095'. 20 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 20. Circulate to reduce mud 0' weight from 12.5 ppg to 12.2 ppg,slow losses,max gas of 112 units. Monitor well,well dead. Run in hole with 4-1/2"stinger with 5"drill pipe to 2700', had losses.Circulate with 12.2 ppg mud weight.Wash from 2700'to 3131',working through various tight spots, loss rate of 20 bph.Slowed pump rate to slow losses and lost returns while pumping at 1 bpm. POOH to 3013' and work pipe. Circulate and reduce mud weight from 12.2 ppg to 11.8 ppg, max gas of 1550 units. 21 April 2013 TD: 10546'; Mud Weight: 11.8; Viscosity: 20. Monitor well—no flow.Wash 0' and ream from 2013'to 3500'. At 3500',the well started to flow and was shut in.Circulate through choke,initial casing pressure 50 psi,final casing pressure 175 psi.Circulate through choke with 12 ppg mud weight,with gas cut mud returns. BOPE Used: Annular preventer and Choke. Reason for BOPE Use: Well was flowing,gas cut mud returns at surface, observing a steady ' gain. Actions Taken/To be taken: The last full BOPE test was completed at 5:30 am on 4/9/2013, and the test witness was waived by the AOGCC inspector Jeff Jones. The annular,top pipe rams, and the choke were tested on 4/19/2013, prior to running in the hole with a 4-1/2" tubing stinger on 5" DP to start the permanent abandonment of the well per the approved sundry number 313-184. The partial BOPE test was approved by Guy Schwartz,AOGCC,via email on 4/18/2013. If you have any questions or require additional information, please contact Rick Ysa at 281-844- 5767, or myself at 907-317-2969. Sincerely, MichaelQ uick Repsol Alaska D&C Engineering Team Lead Page 2 of 2 rK.k- 3A PT6 2130�Io Regg, James B (DOA) From: quick, michael (ext) [michael.quick@servexternos.repsol.com] 2 il izz.1 4Sent: Friday, April 19, 2013 2:11 PMI To: Schwartz, Guy L (DOA); Regg, James B (DOA); DOA AOGCC Prudhoe Bay Cc: ysa, rick (ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: BOPE Use Summary Report- Repsol Qugruk#3A(PTD 213-031) Attachments: Repsol Qugruk 3A BOP Use Summary Report PTD 213-031.pdf Guy— Attached is the BOPE Use Summary Report for the well control event that happened on April 14, 2013, for the Repsol exploration well, Qugruk$O, PTD 213-031. 3Pc Please let me know if you need further information on this matter. Regards, Mike From: Schwartz, Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, April 18, 2013 10:46 AM To: quick, michael (ext) Cc: ysa, rick(ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT; Regg, James B (DOA) Subject: RE: BOP test - Repsol Qugruk #3A (PTD 213-031) Mike, The Commission will require you to test the well control equipment used ( annular and choke manifold at minimum) before RIH with stinger. The Commission will waive the full BOP test. This should be a fairly quick turnaround and get you back in the wellbore in a timely manner. Per 20 AAC 25.035(e)(10)(C) Also per guidance document 10-03 the Commission requires a complete report of the well control incident. We have been getting daily reports via email but a summary should be submitted of the entire event . http://www.doa.alaska.gov/ogc/bulletins/bul 10-03.pdf Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: quick, michael (ext) [mailto:michael.quick@servexternos.repsol.com] Sent: Thursday, April 18, 2013 10:29 AM To: Schwartz, Guy L (DOA) Cc: ysa, rick (ext); field.super.alaska.repsol@gmail.com; flynn, tim (ext); dial, amanda (ext); JONES, ROBERT Subject: FW: BOP test - Repsol Qugruk #3A (PTD 213-031) Guy— On Qugruk#3A, Repsol has circulated 12.5 ppg mud from +/-2700' to surface, and the well is static at this time. 1 As we discussed, Repsol requests to POOH with the rotary steerable drilling BHA, and RIH with a 2000' stinger of 4-1/2" tubing on drill pipe to abandon the Qugruk#3A well bore per the approved sundry, without testing the BOP prior to RIH. Although the well is currently static, Repsol does not believe it is in the best drilling practice to be out of the hole for any longer than necessary due to the well control events that have happened over the past several days. Please let me know if you need more details on this forward plan. Regards, Mike Michael Quick / Alaska D&C Operations Team Lead Repsol E&P USA, Inc. 3800 Centerpoint Dr.Suite 400 4.1111111 Anchorage,AK 99503 WV Tel.:907 375 6933 /Cel:907 317 2969 michael.quickaservexternos.repsol.com REPIOL From: Q3 Company Man [mailto:g3coman.repsol@gmail.com] Sent: Thursday, April 18, 2013 7:52 AM To: quick, michael (ext) Subject: FW: BOP test From: Grimaldi, Louis R(DOA) [mailto:lou.grimaldi@alaska.gov] Sent: Monday, April 15, 2013 6:21 PM To: Q3 Company Man; DOA AOGCC Prudhoe Bay Cc: field.super.alaska.repsol@gmail.com; a3clerk.repsol@gmail.com Subject: RE: BOP test I Your request to delay testing BOP's makes sense and is granted. I need you to keep Mr. Regg and myself updated at minimum 6 A.M. and 6 P.M. intervals. I am on the North Slope right now and will be monitoring progress for the next week. Please send me an update (with plan forward) as soon as possible today followed by same tomorrow morning by 06:00. Thank you, Lou Grimaldi Louis R. Grimaldi Petroleum Inspector Alaska Oil and Gas Conservation Commission 907-776-5402 (Home) 907-252-3409 (Cell) Lou.Grimaldi@Alaska.gov From: Q3 Company Man [mailto:g3coman.repsol@gmail.com] Sent: Monday, April 15, 2013 5:15 PM To: DOA AOGCC Prudhoe Bay 2 Cc: field.super.alaska.repsol@gmail.com; Q3 Company Man; g3clerk.repsol@gmail.com Subject: BOP test Dear Sirs, The next scheduled BOP test for Repsol Q-3a, Nabors 7ES is Tuesday 16 April. We are currently in a well control situation, circulating on choke. We would like to request an extension on the test until our well control operations are completed. Please advise. Regards, Rodney McCoy Larry Burns Repsol DSMs 907-685-3211 Rig office 907-685-3236 Rig floor 3 logai Memo REFlt7[ Date: 4/19/2013 To: Guy Schwartz and Jim Regg AOGCC,Anchorage,AK 99501 907-793-1226 CC: Robert Jones, Rick Ysa,Tim Flynn From: Michael Quick, Repsol RE: BOPE Use Summary Report—Qugruk#3A, Permit#:213-031 CONFIDENTIAL Dear Sirs: At approximately 10 am on Sunday,April 14, 2013,the annular preventer was closed due to well flow on the Qugruk#3A exploration well. The AOGCC Inspectors on the North Slope were notified immediately of the shut in. Below is the information required from AOGCC Industry Guidance Bulletin No. 10-003. Date/Time of BOPE Use: At approximately 10 am on Sunday,April 14, 2013,the annular preventer was closed due to well flow. Well/Location/PTD Number: Qugruk#3A, Permit#: 213-031, Colville Delta area, North Slope,AK. Rig Name: Nabors Rig 7ES Operator Contact: Michael Quick, Repsol Anchorage office—907-375-6933 Operations Summary,including events leading up to BOPE use: Date Activity 12 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Drill from 10053'to TD of 493' 10546'.Circulate and condition. Back ream from 10546'to 9452',experience pack off at 9452', reestablish circulation and RIH to 9624'. Back ream from 9624'to 9497',work through various spots where packing off. Back ream from 9497'to 9210'working through various spots where packing off. Page 1 of 3 • 13 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Back ream from 9210'to 0' 8690',work through tight spot. Back ream from 8690'to 6736',work through various spots where packed off. Continue back ream from 6736'to 4950', work through various spots where packed off. 14 April 2013 TD: 10546'; Mud Weight: 11.0; Viscosity: 88. Pull out of hole from 4950'to 0' 3880'.Worked tight spot at 3880'. Back ream from 3880'to 3230'. Work through various tight spots. Pull out of hole from 3230'to 2120'. Monitor well —bubbles observed but no flow. Pull out of hole 15',observed swabbing. TIH 15'and circulate. 1055 units of gas observed while circulating bottoms up. Flow check—no flow or bubbles. Pump out of hole from 2120'to 979'. Monitor well—bubbles and flowing. Circulate while observing slow gain and gas cut mud of 9.8 ppg.Shut in well with 80 psi casing pressure.Casing pressure increase to 250 psi over 1 hour.Circulate through choke. Shut in well with casing pressure 260 psi.Circulate through choke.Strip in hole from 970' to 2109' maintaining 260 psi on casing. 15 April 2013 TD: 10546'; Mud Weight: 10.9; Viscosity: 52. Circulate through choke at 0' 2109', max gas of 1200 units.Shut in well with initial casing pressure 240 psi, bled to 30 psi,increased to 250 psi. Strip in hole from 2109'to 2708'.Circulate on choke, lost 65 bbls. Shut in well with 260 psi casing pressure.Circulate on choke while stripping in hole to 2710', obstruction observed.Shut in well and monitor casing pressure increase from 80 psi to 240 psi. Circulate on choke at 2708'—gas range from 200 to 1500 units seen. Request to delay BOP test is granted by AOGCC rep, Louis Grimaldi. 16 April 2013 TD: 10546'; Mud Weight: 11.3; Viscosity: 57. Strip in hole from 2708'to 0' 2734'while circulating through choke.Wash from 2734'to 2753'while on choke and annular closed. Flow check—very slow flow.Shut well in with 200 psi on casing. Flow check—very slow flow. Ream from 2750'to 2770', had flow increase,shut in well with 180 psi on casing.Circulate on choke while increasing mud weight. Maximum of 1800 units of gas seen while circulating. 17 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 54. Circulate on choke at 2706' 0' while increasing mud weight to 12.0 ppg. Flow check—no flow. Circulate and increase mud weight to 12.5 ppg. Monitor well—static. Pump out of hole from 2707'to 2120'. Flow check—no flow. 18 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 60. TIH from 2120'to 2707'. 0' Attempt to circulate with losses of 1 bpm. Monitor well—loss rate of 1 bph. Attempt to circulate with losses of 1 bpm. Monitor well. Pump out of hole to 2109' and monitor well. Continue pumping out of hole. Page 2 of 3 BOPE Used: Annular preventer and Choke. Reason for BOPE Use: Well was flowing,gas cut mud returns at surface, observing a steady gain. Actions Taken/To be taken: The last full BOPE test was completed at 5:30 am on 4/9/2013, and the test witness was waived by the AOGCC inspector Jeff Jones. The annular,top pipe rams, and the choke are currently being tested as of 9:00 am on 4/19/2013, prior to running in the hole with a 4-1/2"tubing stinger on 5" DP to start the permanent abandonment of the well per the approved sundry number 313-184. This partial BOPE test was approved by Guy Schwartz,AOGCC,via email on 4/18/2013. If you have any questions or require additional information, please contact Rick Ysa at 281-844- 5767, or myself at 907-317-2969. Sincerely, Michael Quick Repsol Alaska D&C Engineering Team Lead Page 3 of 3 oak Memo REPJOL Date: 4/19/2013 To: Guy Schwartz and Jim Regg AOGCC,Anchorage,AK 99501 907-793-1226 CC: Robert Jones, Rick Ysa,Tim Flynn From: Michael Quick, Repsol RE: BOPE Use Summary Report—Qugruk#3A, Permit#: 213-031 CONFIDENTIAL Dear Sirs: At approximately 10 am on Sunday,April 14, 2013,the annular preventer was closed due to well flow on the Qugruk#3A exploration well. The AOGCC Inspectors on the North Slope were notified immediately of the shut in. Below is the information required from AOGCC Industry Guidance Bulletin No. 10-003. Date/Time of BOPE Use: At approximately 10 am on Sunday,April 14, 2013,the annular preventer was closed due to well flow. Well/Location/PTD Number: Qugruk#3A, Permit#:213-031,Colville Delta area, North Slope,AK. Rig Name: Nabors Rig 7ES Operator Contact: Michael Quick, Repsol Anchorage office—907-375-6933 Operations Summary,including events leading up to BOPE use: Date Activity 12 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Drill from 10053'to TD of 493' 10546'.Circulate and condition. Back ream from 10546'to 9452',experience pack off at 9452', reestablish circulation and RIH to 9624'. Back ream from 9624'to 9497',work through various spots where packing off. Back ream from 9497'to 9210'working through various spots where packing off. Page 1of3 13 April 2013 TD: 10546'; Mud Weight: 10.8; Viscosity: 60. Back ream from 9210'to 0' 8690',work through tight spot. Back ream from 8690'to 6736',work through various spots where packed off. Continue back ream from 6736'to 4950', work through various spots where packed off. 14 April 2013 TD: 10546'; Mud Weight: 11.0; Viscosity: 88. Pull out of hole from 4950'to 0' 3880'.Worked tight spot at 3880'. Back ream from 3880'to 3230'. Work through various tight spots. Pull out of hole from 3230'to 2120'. Monitor well —bubbles observed but no flow. Pull out of hole 15', observed swabbing. TIH 15'and circulate. 1055 units of gas observed while circulating bottoms up. Flow check—no flow or bubbles. Pump out of hole from 2120'to 979'. Monitor well—bubbles and flowing.Circulate while observing slow gain and gas cut mud of 9.8 ppg. Shut in well with 80 psi casing pressure. Casing pressure increase to 250 psi over 1 hour. Circulate through choke. Shut in well with casing pressure 260 psi.Circulate through choke.Strip in hole from 970' to 2109' maintaining 260 psi on casing. 15 April 2013 TD: 10546'; Mud Weight: 10.9; Viscosity: 52. Circulate through choke at 0' 2109', max gas of 1200 units.Shut in well with initial casing pressure 240 psi, bled to 30 psi, increased to 250 psi. Strip in hole from 2109'to 2708'. Circulate on choke, lost 65 bbls. Shut in well with 260 psi casing pressure. Circulate on choke while stripping in hole to 2710', obstruction observed. Shut in well and monitor casing pressure increase from 80 psi to 240 psi. Circulate on choke at 2708'—gas range from 200 to 1500 units seen. Request to delay BOP test is granted by AOGCC rep, Louis Grimaldi. 16 April 2013 TD: 10546'; Mud Weight: 11.3; Viscosity: 57. Strip in hole from 2708'to 0' 2734'while circulating through choke.Wash from 2734'to 2753'while on choke and annular closed. Flow check—very slow flow.Shut well in with 200 psi on casing. Flow check—very slow flow. Ream from 2750'to 2770', had flow increase,shut in well with 180 psi on casing.Circulate on choke while increasing mud weight. Maximum of 1800 units of gas seen while circulating. 17 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 54. Circulate on choke at 2706' 0' while increasing mud weight to 12.0 ppg. Flow check—no flow. Circulate and increase mud weight to 12.5 ppg. Monitor well—static. Pump out of hole from 2707'to 2120'. Flow check—no flow. 18 April 2013 TD: 10546'; Mud Weight: 12.5; Viscosity: 60. TIH from 2120'to 2707'. 0' Attempt to circulate with losses of 1 bpm. Monitor well—loss rate of 1 bph. Attempt to circulate with losses of 1 bpm. Monitor well. Pump out of hole to 2109'and monitor well. Continue pumping out of hole. Page 2 of 3 • BOPE Used: Annular preventer and Choke. Reason for BOPE Use: Well was flowing, gas cut mud returns at surface, observing a steady gain. Actions Taken/To be taken: The last full BOPE test was completed at 5:30 am on 4/9/2013, and the test witness was waived by the AOGCC inspector Jeff Jones. The annular, top pipe rams, and the choke are currently being tested as of 9:00 am on 4/19/2013, prior to running in the hole with a 4-1/2"tubing stinger on 5" DP to start the permanent abandonment of the well per the approved sundry number 313-184. This partial BOPE test was approved by Guy Schwartz, AOGCC, via email on 4/18/2013. If you have any questions or require additional information, please contact Rick Ysa at 281-844- 5767, or myself at 907-317-2969. Sincerely, Michael Quick Repsol Alaska D&C Engineering Team Lead Page 3 of 3 w\�\°\\FIl X771 s7 THE STATE Alaska Oil and Gas �= °fALAS� - _ Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue ��. Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Bob Jones Drilling Manager Repsol USA ��� - O 2001 Timberloch Place, Suite 3000 3 Woodlands, YX 77380 Re: Wildcat Field, Wildcat Pool, Qugruk 3A Sundry Number: 313-184 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, Cathy P Foerster Chair I -- DATED this l ID day of April, 2013. Encl. ,�,,• RECEIVED APR 1r 22 13 STATE OF ALASKA AOC CC ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAD 2E.28(1 1.Typed Request: Abandon 0• Plug for Redrill 0 Perforate New Pool 0 Repair Will 0 Change Approved Program 0 Suspend 0 Plug Perforations 0 Perforate 0 Pull Tubing 0 Time Extension 0 Operations Shutdown 0 Re-enter Susp.Well 0 Stimulate 0 Alter Casing 0 Other. 0 2.Operator Name: 4.Current Well pass: 5.Permit to DM Number. REPSOL USA Exploratory 0, Development 0 213031• 3.Address: Stratigraphk 0 Service ❑ 6 API Number. 2001 Timbedoch Place,Suite 3000.Woodlands,TX 77380 50-103-20664-01.00 7.If perforating: 8.Well Name end Number. What Regulation or Conservation Order governs well sparing in this pool? Qugruk 3A • Will planned perforations require a spacing exception? Yes 0 No 0 9.Property Designation(Lease Number): 10.Field/Pod(s): ADL 391445,391455• Wildcat , 11. PRESENT WELL CONDITION SUMMARY Toted Depth MD(ft): Total Depth ND(e): Effective Depth MD(e): Effective Depth NO(ft): Plugs(measured): Junk(measured): • 10548 • 7205 . 10546 - 7205 Casing Length Size MD TVD Burst Collapse Structural Conductor 83' `20' 113' 113' Surface 2086 13-3/6' 2120 2120 5020 2200 intermediate Production Liner Perforation Depth MD(f): Perforation Depth TVD(f): Tubing Size: Tubing Grade Tubing MO(f). WA' N/A WA N/A N/A Packers and SSSV Type: Packers and SSSV MD(n)and ND(ft): N/A N/A 12.Attachments: Description Summery d Pkat 0 13.WWI Class/Item work Detailed Operations Program 0 BOP sketch 0 Exploratory ,/ 1\01y StratlgraphIc 0 Development Service 14.Estimated Date for 15.Well Status alter proposed work 3/28/2013 ` Commencing Operations. Oil Gas WDSPL Suspended 1 ,11,A1316.Verbal Approval: Date. WINJ GINJ WAG Abandoned/ 41 Commission Representative: GSTOR SPLUG 17.I hereby certify that the foregoing is true and correct to the best d my knowledge Contact Michael Quick 907-375-6933 Email Michael.auickOservextemos.reosol.corn PrintedNer(W).Bob Janes Title Drilling Manager Signature Phone 281-863-1618 Date 4/12/2013 COMMISSION USE ONLY Conditions d approval. Notify Commission so that a representative may witness Sundry Number 31 ,3_,/r."1 2 r / Plug Integrity BOP Test 0 Mechanical Integrity Test 0 Location Clarence [Grsca.,,,,,,,,,,�ti �-I/ Other- z..1� r/G r 4p 4.):f neS5 z..1/3 , 614 o do e ;1 c —a f{ £ t 2-fLQ /0/4,(.., Spacing Exception Required? Yes No / Subsequent Fane Required An-y o 7- " BDMS APR 1 7 2113 APPROVED BY Approved by0 f...,,464r.) COMMISSIONER THE COMMISSION Dale 4 - /6, — /3 ORIGINAL 4i3 -„, -7, ,‘- ,e , , RECEWED APR .°, :' 201J AOGCC April 12,2013 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage,AK 99501 RE: 10-403 Sundry for Permanent Abandonment: Repsol Qugruk#3A PTD 213-031 Dear Commissioner: Repsol hereby submits an Application for Sundry Approvals for the permanent abandonment of Qugruk#3A,permit to drill 213-031. Qugruk#3A was spudded 4/3/2013,and a total depth of 10,546' was reached on 4/12/2013. The abandonment procedure is attached with the form 10-403 sundry application. An LWD log for the well was provided electronically to Mr.Guy Schwartz and Mr.Jim Regg on 4/12/13. The abandonment procedure includes coverage of all hydrocarbon bearing zones,and Repsol plans to follow 20 AAC 25.112(g)(1)for tagging requirements for each plug,by placing weight on the plug. Pertinent information attached to this application includes the following: 1. Form 10-403 Application for Sundry Approvals—2 copies 2. Abandonment Procedure 3. Current Wellbore Schematic 4. Proposed Abandonment Wellbore Schematic The AOGCC is requested to treat as confidential all information included. If you have any questions or require additional information,please contact myself at 281- 863-1618,or the technical contacts contained in the following pages. Sine-..•I , c) Bob Jones Drilling Manager Repsol USA REPSOL USA Qugruk#3A P&A Procedure(PTD 213-0311 1. Notify regulatory agencies 48 hours prior to commencing abandonment operations. 2. RIH with open ended drill pipe to 10,400'MD 3. Rig up cementers and test lines to 4000 psi. J ,•-•l`f0o 4. PumpAbls/ 8 sacks of 15.8 ppg Class G cement foropen hole plug with 10% ti7 excess factor. 1030 "..4. E,\ 5. Pull up above top of cement and circulate drill pipe clean.WOC. 'TO 6. RIH and tag cement plug while circulating with 10,000 lbs to verify top of cement. 7. POOH to 4950'MD. 8. Pump 55 bbls/270 sacks of 15.8 ppg Class G cement for 650'open hole plug with 10% excess factor. 9. Pull up above top of cement and circulate drill pipe clean. WOC. 10. RIH and tag cement plug while circulating with 10,000 lbs to verify top of cement. 11. POOH. 12. Pick up 13-3/8"Cement Retainer and RIH on drill pipe. 13. Set 13-3/8"Cement Retainer at 2040'. Pull up and sit back down with 10,000 lbs on retainer to verify set. 14. Sting into retainer and squeeze 36 bbls(250')of 15.8 ppg Class G cement below retainer. 15. Un-sting from Retainer and spot 38 bbls(250')of 15.8 ppg Class G cement on top of--- retainer. ft retainer. t t?iT re-4- 4 2-12rz'p`f"( zo 16. POOH above top of cement and circulate drill pipe clean. POOH. r ioi c-ler 1 17. Pick up 13-3/8" Bridge Plug on drill pipe and RIH to 280'. Set bridge plug. Pull up and sit J back down with 10,000 lbs on bridge plug to verify set. 18. Spot 42 bbls(280')of 10.7 ppg Permafrost cement on top of bridge plug. POOH. 19. WOC. 20. Nipple down BOP and Cut off Wellhead. 21. Rig down and move off drilling rig. 22. Cut off all casing strings(20"and 13-3/8")at least 3 feet below original ground level. 'At-4�j ;F6,6_23. Weld a 20"cap onto the casing stub with requires well identification information. � S L�3 ( zo 4-AT-2.-,:c./2 D 24. Take photos of the welded 20"cap. 25. Remove cellar and back fill cellar hole. Take photos of mound. REPSOL 2012-13 Exploration Qugruk #3A III Wellbore Schematic — CURRENT REPJOL Confidential Rig 7ES RKB: 29' i: : : •,;,,:,; „,•: :„l,":::::; ,1 26” Hole' Q-3 Elevation: 17' 1 RKB to MSL 46' �: :-:•::::: �::::: 20" 131# J55-01 :::::%. 16" Hole—0► 5. 13-3/8" 68# L-80 BTC yi .: : Casing @ 2120' MD 1 , , , , KOP@2708' MD Build to 58 degrees ,' and held to TD , , , . , . , \ , , , 8-1/2" Hole TD @ 10546' MD / 7205' TVD A. Dial REPSOL 2012-13 Exploration Qugruk #3A leir Wellbore Schematic — Proposed P&A REPIOL Confidential Rig 7ES RKB: 29li ,\‘‘,,\''\\"\.\\\\`‘.`,\N: .1 Q-3 Elevation: 17' 26" Hole—ow-1: :: ?'\\ Cement to •:\\\:\'..:',: : : :I \\:\q•'H:i I RKB to MSL 46' f. i, ,,,;,,, ,,,, . . Surface . . ::.....;.4. 1 20" 131# J55—0•-i: : ,•:, i::::i;r; ','• • ::H';'' 13-3/8" CIBP @ +/-280' :•:•:,.; 10.8 ppg : 5.".. 16" Hole—o- H:: KWM : ..,.\,:;•::, 250' cmt on •,',,,"\ top of retainer X":•:,,I ,/ 13-3/8" 68# L-80 BTC :::::5"..; .... . .. Casing @ 2120' MD below retainer r i ,I i 13-3/8" r r ,' Retainer rr r rr @ +/-2040' r r 1 MD 650ft Plug @ ,' .' , , 4300' - 4950' MD ,.' 10.8 ppg ," (Nanushuk44901, : .i. ,KWM ,/ KOP @ 2708' MD •:ii: : to 4800' MD),. :i :::::::::::• , . •: :•::::::::::::::: . Build to 58 degrees ,•:::::: ::::::::::::::•:•:• .•: :•:•:• •:•:•:•:•:•:•::::::: , and held to TD ,, „,:::::: :i: i:i:::::i:i:i::::::: :. !• i:i:i4c..:6; .:•:::::: : ::i:i: : Plug @ 9100' - 10400' MD ,-" :tp....:.0 pg::::::H::, (Kup C 9297' to 9322' MD, ,, :•:•:•:•.•—•:•: :•:•:•:•••., Alpine 9647' to 10070' MD ,,' :••:::::::•:•: ::::-, ::•:•:•:•:•:. •:•-, , :::::::;::: •, Nuiqsut 10070' to 10288' ,' •:•:•:•:•-, •:•:•:, MD) ,( 10.8 ppg , .•:: KWM ,J , ,•::: :.:• ,•::i:::::::::. c,cto;o, , :•:::::::::::::::::. ,C° / ,•:.: :. ::i:: :::i:i:i:i:i:::: 7_, ,,;:i: :: :-::•-:•::::::: ::: ,- , : :]: 1 0:10.0H:i :i,l, • •:.::•:•::::. .• :•:—.• —...:.....- s 8-1/2" Hole •••••::::•:•: :: •:•:•:•::•:::::•:•-• ' qio • :::: :: ::::: .' •:: ::,;2 ,-/ TD @10546' MD ! 7205' TVD A. Dial Schwartz, Guy L (DOA) From: quick, michael (ext) <michael.quick@servexternos.repsol.com> Sent: Saturday, April 13, 2013 11:46 AM To: Regg,James B (DOA) Cc: dial, amanda (ext);ysa, rick (ext);JONES, ROBERT; Schwartz, Guy L (DOA); Bettis, Patricia K (DOA); DOA AOGCC Prudhoe Bay; ross, david (ext); field.super.alaska.repsol@gmail.com Subject: RE: Repsol Qugruk#3A P&A Sundry Request (PTD 213-031) Thanks Jim. I have confirmed that prior to the oil transfers to ENI,they are strapping the tank, loading the oil to a vac truck, and re- strapping the tank to measure the oil volume transferred to ENI. This method will be used on both 0-1 and Q-6. Please let me know if you need additional information. Regards, Mike From: Regg, James B (DOA) [ .jim.reggtcJalaska.gc Sent: Friday, April 12, 2013 4:12 PM To: quick, michael (ext) Cc: dial, amanda (ext); ysa, rick(ext); JONES, ROBERT; Schwartz, Guy L(DOA); Bettis, Patricia K(DOA); DOA AOGCC Prudhoe Bay Subject: RE: Repsol Qugruk #3A P&A Sundry Request(PTD 213-031) Mike We reviewed the logs and proposed work procedure. Following adjustments are required to work procedure (also annotated on attached): Step#4—Logs indicate a resistivity kick at 9130 ft so TOC for bottom plug must be at least 9030 ft; I calculate an additional 5 bbls of cement(total 105 bbl)to gain the required 100 ft above zone in question Step#6—Notify AOGCC Inspector for opportunity to witness tag of bottom plug Step#13—Pressure test retainer to 2000 psi in addition to tag; notify AOGCC Inspector for opportunity to witness tag and test Steps#22-#25—Notify AOGCC Inspector for opportunity to witness. If unavailable, photo document the cutoff confirming depth of cut BGL, cement to surface (all casing strings), marker plate info and as installed, and mound With those changes,you are authorized to start P&A operations on Q-3A(PTD 2130310) I understand from your phone conversation with Guy Schwartz earlier today that Eni has agreed to accept the fluids recovered from well testing at 0-1. We will need written documentation on how Repsol will be measuring the oil for custody transfer purposes. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 1 907-793-1236 From: quick, michael (ext) [ ,lailto:michael.quick@aservexternos.repsol.con;J Sent: Friday, April 12, 2013 1:47 PM To: Schwartz, Guy L (DOA); Regg, James B (DOA) Cc: dial, amanda (ext); ysa, rick(ext); JONES, ROBERT Subject: Repsol Qugruk #3A P&A Sundry Request(PTD 213-031) Guy— Per our discussion yesterday, please see the attached plan and wellbore schematics for the permanent abandonment of Repsol's Qugruk#3A well (PTD 213-031). Also attached is the open hole LWD logs for this well. The well reached TD early this morning, and we expect to be ready to set the first open hole plug in the next 24 hours, as no additional evaluation of this well is needed. Please advise if we have verbal approval to start P&A operations on this well,or if you need additional information. We will submit the 10-403 Sundry package ASAP. Regards, Mike Michael Quick Alaska D&C Operations Team Lead Repsol E&P USA. Inc 3800 Centerpoint Dr.Suite 400 Anchorage,AK 99503 Tel.:907 375 6933 /Cel:907 317 2969 michael.quick(adservexternos.repsol.com REPJOL 2 RECEIVED APR 2013 CANIRIG r‘' Samples obtained from Repsol's Qugruk-#3A well (API No. 50-103-20664-01-00) in the North Slope Borough of the state of Alaska. SAMPLE MANIFEST Set#3: Washed and Dried Cuttings,8.5" Section TD 4/12/2013 Shipped on: From: Canrig Drilling Technologies 301 E. 92"d Ave. Anchorage AK 99515 To: Alaska Oil and Gas Conservation Commission Attention: Howard Okland, Petroleum Geologist Assistant 333 West 7th Avenue, Suite 100 Anchorage, AK 99515 (907) 793-1235 Set#3, 8.5" Section: Shipment consists of 7 Boxes total: Box 1: Washed and Dried (47) Washed and Dried Sample Cuttings on 30ft intervals, 2690'-4100' Box 2: Washed and Dried (50) Washed and Dried Sample Cuttings on 30ft intervals, 4100'-5600' Box 3: Washed and Dried (45) Washed and Dried Sample Cuttings on 30ft intervals, 5600'-6950' Box 4: Washed and Dried (45) Washed and Dried Sample Cuttings on 30ft intervals, 6950'-8300' Box 5: Washed and Dried (8) Washed and Dried Sample Cuttings on 30ft intervals, 8300'-8510' (1) Washed and Dried Sample Cuttings on 60ft intervals, 8510'-8570' (37) Washed and Dried Sample Cuttings on 30ft intervals, 8570'-9650' Box 6: Washed and Dried (10) Washed and Dried Sample Cuttings on loft intervals, 9650'-9750' (1) Washed and Dried Sample Cuttings on 20ft intervals, 9750'-9770' (10) Washed and Dried Sample Cuttings on 30ft intervals, 9770'-10070' (15)Washed and Dried Sample Cuttings on loft intervals, 10070'-10220' (1) Washed and Dried Sample Cuttings on 30ft intervals, 10220'-10250' Box 7: Washed and Dried (9) Washed and Dried Sample Cuttings on 30ft intervals, 10250'-10520' (1) Washed and Dried Sample Cuttings on 26ft intervals, 10490'-10546' This has been shipped as 1 bundle (7 boxes)of samples. 213 - °31 CANRIG .. 4 Received by Expedit �. /Lj�, Date 7 /,�/_____3 � / 'A' / � n 40.- ' A w �� j/j,sA THE STATE Alaska Oil and Gas 7 )* _!��'�' ofALASKA Conservation Commission vr~ GOVERNOR SEAN PARNELL 333 West Seventh Avenue OFb Anchorage, Alaska 99501-3572 ALAS Main. 907.279.1433 Fax: 907.276 7542 Bill Hardham Operations Manager REPSOL USA 2001 Timberloch Place, Suite 3000 Woodlands, TX 77380 Re: Wildcat Field, Wildcat Pool, Qugruk 3A REPSOL USA Permit No: 213-031 Surface Location: 1805' FEL, 1732' FSL, SEC. 6,Ti1 N, R6E, UM Bottomhole Location: 715.8' FWL, 2047.7' FSL, SEC. 31,T12N, R6E, UM Dear Mr. Hardham: Enclosed is the approved application for permit to drill the above referenced exploration well. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy . Foerster Chair DATED this it day of March, 2013. RECEIVED STATE OF ALASKA ALi ,OIL AND GAS CONSERVATION COMM ,V MAR 0 1 2013 PERMIT TO DRILL a (�(� ib. Iz°t3 20 AAC 25.005 AO G v v la.Type of Work: — 1b. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ ic.Specify if well is proposed for: Drill ❑ Rednll © Stratigraphic Test ❑ Development-Gas Service-Supply ❑ Multiple Zone E Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ®' , Exploratory Q• Service- WAG ❑ Service-Disp ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket Q Single Well ❑ 11.Well Name and Number: REPSOL USA Bond No. 22032715- Qugruk 3A' 3.Address: 6. Proposed Depth: 12. Field/Pool(s): 2001 Timberloch Place,Suite 3000,Woodlands,TX,77380 MD: 10372• TVD: 7187 ' Wildcat 4a. Location of Well(Governmental Section): 7 Property Designation(Lease Number). ?)),6103 Surface: 1805'FEL,1732'FSL,Sec.6,T11 N, R6E,UM. ADL 391445• 311 y553I`1I Top of Productive Horizon: 8.Land Use Permit: l 13.Approximate Spud Date: 1018.1'FWL, 1336.3'FSL,Sec.31,T12N, R6E,UM LAS 28269 3/23/2013 Total Depth: 9.Acres in Property: 14 Distance to Nearest Property: 715.8'FWL,2047.7'FSL,Sec.31,T12N,R6E,UM acresre ? y11013usa 3093 ft 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10. KB Elevation above MSL: • 44' feet 15 Distance to Nearest Well Open Surface:x- 412876• y- 5,972,219 • Zone-4 • GL Elevation above MSL: •15' feet to Same Pool: N/A 16.Deviated wells: Kickoff depth: 2330 feet 2.1117.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: S9.5$ degrees • Downhole: 3886 psi• Surface: 3167 psi • 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) 8.5" --- --- --- --- --- 2214 2214 10372 7187 OH Section 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). 9306 8939 2214 2214 Casing Length Size Cement Volume MD TVD Conductor/Structural 80.00 20" 38 sx Permafrost Type L cement 109 109 Surface 2,170.00 13-3/8" 771 sx Perm Lead,314 sx Class G T 2214 2214 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat Q BOP Sketch ❑ Drilling Program Q Time v. Depth Plot E Shallow Hazard Analysis❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Michael Quick 907-375-6933 Printed Name Bill Hardham Title Operations Manager Signature LO1- Phone 907-375-6917 Date 2/28/2013 _pr Commission Use Only Permit to Drill API Number: Permit Approval �- See cover letter for other Number: 0113 p 3( 50-(03-a0(o(oy-O1 -Ob Date: �J•�\�\\�J requirements. Conditions of approval: If box is checked, elwellm'ay not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shalEff Other: 4, L{000 oS L /jO,P ---Ii j7' Samples req'd: Yes I] No❑ Mud log req'd: Y� C/ C H2S measures: Yes [21 No❑ Directional svy req'd: Y� P❑ c lc- 601 res, Xe- /,Q r e .t r �av ,) f ehtYN it W G Yk% goo Com(rl r7 / I4 1 PPROVED BY THE COMMISSION DATE: 3-(I —(3 / NJ ,COMMISSIONER ORIGINAL 76 . . I3 ��., # 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 \�O\� RECEIVED MAR 0 1 2013 AOGCC RrEPJ'OL REPSOL USA Application for Permit to Drill Qugruk #3A North Slope, AK February 2013 February 28, 2013 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill: Repsol Qugruk#3A Dear Commissioner: Repsol hereby applies for a Permit to Drill a sidetrack, Qugruk#3A. Qugruk#3A will be a sidetrack from an already existing onshore exploratory well on the North Slope. The surface location for Qugruk#3A is located approximately 15 miles Northwest of DS2M. Repsol plans to start drilling the sidetrack Qugruk#3A approximately March 15, 2013. Qugruk#3A sidetrack will be drilled using Nabors' Rig 7ES. The ice pad and ice road will be complete and the rig will be on location to drill Qugruk 3 (API 50-103-20664-00- 00 &PTD 212187) and sidetrack Qugruk#3A. No well testing is planned at this time. - At the completion of the drilling program, the drilling rig will be demobilized to Deadhorse. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill — 2 copies 2. Well Prognosis and discussion of operational considerations 3. Location Plat and Drill Pad Layouts 4. Days vs. Depth Drilling Curve 5. Drilling Procedure 6. Wellbore Schematic 7. Directional Plan 8. Pressure information including pore pressure, mud weight and fracture gradient curves, and maximum anticipated surface pressure calculations. 9. Drilling Area Risks 10. Cement Program 11. Drilling Fluid Program Page 2 The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Repsol. If you have any questions or require additional information,please contact Bob Jones, Drilling Manager at 832-442-1618, myself at 907-375-6917, or the technical contacts contained in the following pages. Sincerely, tA-141—__ Bill Hardham Operations Manager Repsol USA REPSOL USA Qugruk #3A Overview and Timetable Repsol is conducting an exploration drilling program on leases operated by Repsol during the winter 2012 - 2013 drilling season. The drilling program includes activities beginning during the summer of 2012 and ending during the summer of 2013 including: • Construction of three rig ice pads and three camp pads will be located in the Colville River Delta in which three exploratory wells will be drilled (Qugruk#1, Qugruk#6, and Qugruk#3). An ice pad will be constructed off of DS2M for staging construction and drilling operations in December or January as permitted by ADNR and the NSB. • Approximately 30 miles of onshore ice roads have been constructed as permitted by ADNR and the NSB for transporting drilling rigs and equipment for drilling operations. • Exploration drilling operations will be conducted between January and April at three separate locations using three separate drilling rigs. The wells are being drilled primarily to assess oil reserves within leases operated by Repsol. • Demobilize all equipment from the ice pad and clean up the sites and ice roads during April to early May. • Conduct summer clean up operations during July to August 2013. Operational Considerations Surface Casing Shoe Depth The surface casing shoe was set at 2214' TVD while drilling Qugruk 3, located deep enough to isolate the permafrost section, shallow gravels and unconsolidated sediments and provide adequate integrity at the casing shoe to accommodate future mud weights. It will be set above the first expected hydrocarbon bearing sand, the Tuluvak Sand, at+/- 2,474' TVD. Lost Circulation and Sloughing Shales Some of the wells in this general region encountered sloughing shales below the HRZ and lost circulation in and near their target horizons. The Qugruk#3A mud program has been designed to take these potential problems into account. Pressures Anticipated pore pressures are derived primarily from the histories of offsetting wells in conjunction with a pore pressure analysis. As shown on the attached pore pressure plot and maximum anticipated surface pressure (MASP) calculations, the highest expected pressure is at 7,187 feet TVD and is 3,886 psi (0.54 psi/ft= 10.4 ppg EMW) and will result in a maximum pressure, with a full column of gas, of 3,167 psi, but due to formation breakdown, will result in a maximum pressure at the surface of 1,634 psi (see included calculations). A 5,000 psi working pressure BOP and wellhead system will, therefore, be used on this well. Pore Pressure Review The pore pressure prediction section of this application contains an evaluation of the risk of drilling high pressure zones as potentially recognized after seismic processing. The following plot can be used as a reference for the planned mud weights compared to the expected pore pressure and fracture gradients. Qugruk-3 PP, FG, and MW 0 PP 1,000 — -- I - —F8 ---- `T OBG —MW 2,000 — �._..___.. --�_ — — MW Q3A _..----- 3,000 — • 4,000 — .-_.-. ----- ---i------ -- ----...------------------ ------.------.... _ 5,000 — — — 6,000 — — • 7,000 — 8,000 9,000 — -- — — 8 9 13 11 12 13 14 15 16 17 18 19 Pressure(ppg) A gas influx on an offset well was experienced at a depth of 2,500' TVD on Well Fiord #2. Mud weight was 9.2 ppg when the event occurred, BOP's were in place and the well was killed with 9.4 ppg. The mud weight was increased to 9.7 ppg and no other problems were encountered. A well control event occurred on Qugruk#2 while drilling with 9.2 ppg mud at 2,523' MD. The design of Q-3A has the wellbore kicking off below the surface casing set at 2214' MD/TVD, and'" drilling through the Tuluvak with a mud weight of 10.2 ppg or higher. BOP System and BOPE Testing The BOP system of Nabors Rig 7ES is rated at 5,000 psi working pressure and is described in the BOPE section of this application. Since the calculated maximum anticipated surface pressure in this well is 3,167 psi, it is planned to routinely test all BOPE to 4,000 psi, except the annular BOP which will be tested to 50% of its rated working pressure (-2500 psi). BOPE will be tested every 7 days per 20 ACC 25.035. Well Deviation The Qugruk#3A will be drilled as a highly deviated hole (-59 degrees). Directional control will be monitored via MWD in all hole sections. H2S None of the offsetting wells encountered measurable amounts of H2S in the intervals to be drilled, and it is not expect that drilling the Qugruk#3A well will encounter measurable amounts of H2S. However, the drilling rig will be wired with operating sensors, enhanced by additional sensors tied into the mud logging system, to continuously monitor for the presence of H2S. ' Drilling Waste Handling Waste drilling mud from the well will be temporarily stored within a bermed storage cell in tanks prior to haul off to G&I; while the drill cuttings will be temporarily stored within a bermed storage area in "shale bin" containers. Cuttings will be hauled to an approved disposal facility for processing and disposal. Diagrams are included with this application that shows the ice pad layouts with the proposed location of the storage cells. Additional Information Additional information on operations such as formation tops, logging, mud logging, etc. can be found on the attached Qugruk#3A Well Prognosis. Certified Location Plat An as-built location plat, certified by a Registered Land Surveyor, will be submitted shortly after construction of the drilling location is completed and the conductor pipe is set. Contacts The contacts within Repsol for information are: Reporting and Technical Information: Michael Quick 907-375-6933 or Amanda Dial 907-375-6932 Geological Data and Logs: Sofia Soriano 832-442-1476 REPSOL USA Qugruk #3A Well Prognosis Surface Location: 1805' FEL, 1732' FSL, Sec. 6, T11N, R6E, UM • Target Location: 1018.1' FWL, 1336.3' FSL, Sec. 31, T12N, R6E, UM Bottomhole Location: 715.8' FWL, 2047.7' FSL, Sec. 31, T12N, R6E, UM Elevation: Ground Level 15' AMSL Drill Floor (DF) 44' AGL Planned TD: 10372' MD • Formation Tops: Tops Depth (TVD) Tuluvak 2474' Nanushuk 3839' Torok 4974' HRZ 6284 Kup C 6562' LCU 6566' Alpine 6711' Nuiqsut 6944' TD 7187' Cores: None Planned Logs: Sidetrack (8-1/2"): LWD: Gamma Ray/Resistivity, Density/Neutron, Magnetic Resonance Mud Logging: Mud Logging will be in operation from the base of the conductor casing to well TD. Services will include sample collection; plotting of ROP, lithology, and drilling parameters; show description; gas analysis of cuttings; and gas chromatography. Samples will be collected every 30' from the surface to TD, and every 5' in zones of interest. Collect Isotubes from any gas shows. The wellsite Geologist will adjust the interval or sampling rates as required. Qugruk #3A Drilling Procedure 1. The Qugruk#3 well will be abandoned to +/- 2330' MD/TVD. A 10-403 Sundry will be submitted for P&A plan._ Aayct- Note: BOPE will remain on well and will be tested to 250/4000 psi every 7 days. Agency will be notified 48 hours prior to test. 2. Make up 8-1/2" drilling BHA and RIH to top of kickoff plug at+/-2330' MD/TVD. 3. Kickoff of plug as per timed drilling sequence and directional plan. 4. Drill an 8-1/2"hole building to 59 degrees. Run and utilize MWD and LWD tools through this hole section to monitor hole angle and to collect logging data. 5. Hold —59 degrees to+/- 10372' MD/7187' TVD. 6. Condition the hole for abandonment. 7. The well will be abandoned to surface. A separate 10-403 Sundry will be submitted •rior • . y abandonment work. Qugruk #3A Pressure Calculations and Drilling Risks Maximum Anticipated Surface Pressure: The maximum anticipated surface pressure (MASP) for this well will be the higher of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the last casing shoe (less a full gas column to the surface). The MASP expected in the 8-1/2" hole section is 3,167 psi at a depth of 7,187' TVD (or 0.54 psi/ft less 0.1 psi/ft gas gradient). Predicted fracture gradient data for this area based on offset log data, at 2,214' TVD, the depth of the 13-3/8" casing shoe, is 0.738 psi/ft (14.2 ppg). Complete evacuation of the wellbore, except for a 0.1 psi/ft gas gradient, is assumed. 8-1/2" Hole Section—2,214' to 7,187' MASP (pore pressure) _ (7187 ft)(0.54—0.1) = 3,162 psi ✓ MASP (form. breakdown) = (2214 ft)(0.738 —0.1) = 1,412 psi Therefore, MASP in the 8-1/2" hole section is 3,167 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risk: The nearest wellbore to the planned wellbore of the Qugruk#3A, is the Colville River 1 well located approximately 2 miles southeast. Therefore, there are no nearby wellbore proximity risks. Drilling Area Risks: 8-1/2" Sidetrack Hole— EVENT RISK LEVEL Miti'ation Shale stability in the Moderate Control with higher mud weight and proper drilling interval below HRZ practices. Lost Circulation Moderate Monitor hole cleaning efficiency. Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur,reduce pump rates and lower mud rheology,use LCM material. Hole Swabbing/Tight hole Moderate Circulate hole clean prior to trip. Proper hole fill on Trips utilizing trip sheets,pumping out of hole as needed. Differential Sticking Low Periodic wiper trips as needed for hole conditions. Do not leave pipe static for extended periods. Abnormal Reservoir Low Follow programmed mud weights, monitor well, Pressure increasing mud weights as needed. Ensure adequate kick tolerance prior to drilling pay interval(s). BOP Control System The blowout preventer stack is a Hydril 13 5/8" x 5000 psi annular preventer, a Hydril 13 5/8" x 5000 psi double gate ram type preventer fitted with blind/shear rams and 2 7/8" x 5" variable rams and a Hydril 13 5/8" x 5000 psi single gate ram preventer fitted with 2 7/8" x 5" variable ram block. The BOPE control system on Nabors Rig#7ES is a 6 station, 165 gallon-220 gallon reservoir. Twelve 15 gallon bladder-type separator accumulators, with four nitrogen as backup. One manual master control station with six controls located on the main unit, one six station control panel located on drillers station. Equipped with 1 electric and 2 air pumps with emergency power. The choke manifold is a Cameron 3" x 5000 psi. It will include a Swaco super choke and a 3" manual choke. Wellhead Description An exploration wellhead system has been selected for this well, consisting of a diverter system and a 5M rated wellhead assembly. The diverter system is attached to the 20" conductor with an overshot adapter that allows full bore access to the 20" conductor. The rig's diverter tee, knife gate and annular is then attached to the diverter system. The 13 3/8" casing is suspended with a fluted mandrel hanger in a landing ring that is part of the diverter system. If a top cement job is required, it is recommended that the wash pipe be run through the ball valves at the base of the conductor. Once cementing is complete, the diverter system is removed and a 5M wellhead system is installed on the 13 3/8" mandrel hanger. The connection between the wellhead system and the mandrel hanger is pressure tested to 1200psi. The wellhead system has been designed to be completely removed after the well has been drilled and prepared for abandonment. Qugruk #3 Cementing Program 8-1/2" Open Hole plugs Lead Slurry: Top of slurry: TBD Bottom of Plug: TBD Length: +/- 500' Premium class G cement, 15.8 ppg density 20% excess Yield: 1.17 cu ft/sk Volume: 42.1 bbls (203.4 sx) including excess Co' m o O a Q M y < LL Z : N W K Y D O ° C7 a ° y_ U a r� t- 9 z 8r��z,(y3'a0 c) a COOz ¢ .a O�Z6e Z :e r JV uo N TS FE, N a) M Ri' M oO O 0) a) i M M o • gcoo l o z z ° w W z J W W 14 1111 J 4 Wili CC a Et 7'8 a w V N I— Q CO o w 0) 0) 0) } J M r) co m J o z 0 zco a W OO N Q < K z •OC) W W JY O N J D O V te N O La O =o'- M 0 z CO 0) N cl J CO M M M M a) rdo O p p dcs,E �p z z z z z s� w w w w w •. • J -J W W J I CO 0 CO O CO 0 CO g N U) (0 (A (0 0) U) 0) 3 co co N CO o 0 z0 o W W W W a a a a w w w W J J J J d A f,' O . „\ goo e a�o a o p 5 41 41 Z 11 II M 2 5iN Y 1 ^ O g a f- 3 3 3 >> ON O LL d } U zN za ,ze. m z {WS� �F _ ' . 1- 0 a, n y. a �. a z Ij O CC�:ff x �Z/ � � � Z z� l,¢I ZNNT ZNNN OF ZNFFI� aixa NWOZ iJZ .�'��> () ONO�i-001• ONN(D O NN�1'1 <<� j � a1 ya¢O C� � 5. 0 c,-D-N fppf/I�OpNm NOp1,UD J-FWJJ W RC) OIDO< rxg Wof O R otz - 7 <o-°111 QOc.-°!. �O-m(a0 �'aam 4.1� Utri li � <� visa' ~r C k� b O M h II to.- n II in sr 1.n II ISM 111 ,>›,E{y� a ��� n Z O II ' 811-12u N II O <o P48 w 00 r J<Wm Z �I A i oU 1 5.>•x $58>-x /59,-x E Sa?�°' 1 ~120- Z Z . �$ 8� pm 0g Q< a Nii v C4‘- $ a a t o �J / AS li 14 �” 141 ( 40 11.s'icr 00 i r,\ i _ s , I r Liar 1 3 TI co • , 0_5,00.... __ --"A Z t \ T V. O`�RSfa 0 t V 1\11 \r 0 ,, , - 1,3. d I •, N \ e. !4 ,4s)l" i —0\ ( \ \ 1 1 ..:".,. i g 1 j oc 1 , / wiG /1L / ) I Nzo o�p0\ / (2oU II L t10 \ ( � Z (6s x 11 Hp �`P • �3eyi l r` yQ ' I 4\ �� X LL I _ s U 4 ( t))• W q_ } yLLz E 1114,,' •• G`5��-' a W W c 11III1\,,,,�,\,,�` ai =tri 0 �i • REPSOL 2012-13 ExploraLlon REPlOL Qugruk #3A Wellbore Schematic — Confidential Rig 7ES RKB: 29' Q-3 Elevation: 15 r. ii: i •:,..i... i RKB to MSL 44' 26" Hole ! : i 20" 131# J-55 @+/- 80'_•,..( ::• i Horizon SSTVD below ice pad level : -1070' Permafrost Base :]: ,,,• : 16" Hole —► 13-3/8" 68# L-80 BTC : y Casing @ +/-2214' MD /- 2170' SSTVD —10.• -2430' Tuluvak/Seabee ."." /.::i:. , . . , . . . . -3795' Nanushuk 190 . Inclination . . . . /. -4930' Torok @1 ' 0`���9,', '� X04 �05S° S`' 12-1/4"" Hole -6240' HRZ .' bov�ali o31ti x ' , -6518' Kuparuk C -6667' Alpine -6900' Nuigsut,' 3, . . . . . . . . . . . . . . . . is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . is Estimated TD .:::: - : : : : : . . . . . .:. . . . ... ....... . ... . . . . . . . . . . . @+/- 9306' MD/ ::::: ::iii :: ::: :::: -8895' SSTVD A. Dial 0 00 0 0 El cu O • 0 0 A s +-• Q. • a) o CI Ln � • a M N O a co o � M OS Y • A M = t M OA a 0 N •Y (» V • OO O O O O N V lD 00 ON c-1 '-1 (;;)Lode°paanseaW rn --- opo reo,,,o00_0......„,„.....---7-a----------e------ . 1_< M m I I I l t LO Ct ( ... M Cell o. co0.G 1 a M c ' 0 ..V — O a A N ii 1-1 _7 1 L'n"..."'\"""j\ -N1 07.... .. . • o 0 0 0 0 0 0 0 0 o o o o 0 0 0 0 0 0 0 0 e-i N M tf1 l0 r- 00 of O \I)Qiu - Sclimhew Q-3A Scenario 14 Proposal Geodetic Report (Non.D.f Plml Report thee September 06,2012-0104 PM Survey/BIS Computation Mmlmum Curveturel Lublmk Client Repeat Vertical Section Azimuth 172144(True North) Field Replal E%poration V.rnnl Section Origin 000011,0000 ft Struclur.I Slot 03103 Scenario 10 TVO Reference Delum RKB Well O3 TVO Reference Elevation 4400011 above MSL gambols 0-34 Seabed l Ground Elevation 15 000 fl above MSL UWI/APIS Unlmoxn/Unknown Mpnatic Declination 20006 Survey Nem* 035 Scenario 14 Total Grevlly FI.M Strength 10026794 non(9 8 based) Survey DO. Judy 25 2012 Total Magnetic Fl.id Strength 57606 125 car Tort/9501001 IERD Rxm. 58000 1607862711/5707/0845 Magnetic Dip Angle 80551 Coordlmh Reforms.System NAD27 Alrsla Stat.Plan.,Zone 04,LAS Feel 0.00mbon D.1. Jul,252012 Locellon Lett Lop Al 70 20 221647 W 150 02 24/36400 Magnetic D.OSnetion Model 0401392011 Location Grid N/E 34 N 597221900011US,E 412876 000nus North Reference True Nath CRS Grid Convergence Angie 06556 Grid Convergence U..d 00000 Grid Scale Factor 0 99990562 Total Corr Meg North-uTru. 20 0051 North Local Coo rd Referenced To Well HW Comments MO Ind Tru. 19050 ND VSEL NS EW TF DLS Dir.gional Exclusion E.cid.mn^oo. Northing Eluting gle (3) C1C) (R) (R) (8) (R) (R) CI 410011)Difficulty And.. Zone Alert II (RDS) (863) 044.18 Location 000 000 17214 4400 000 000 000 000 337M N/A 000 915 5972221900 41257600 Surface Casey 210000 000 33700 205600 210000 000 000 000 337M 000 000 615 5/27221200 41287600 Tie In KOP3/100 233000 000 33700 225600 233000 000 000 000 3370 fl/A 000 915 597:21900 41237600 240000 210 33700 235595 239996 -124 118 -050 337M 300 043 775 597222019 41287551 250000 510 33700 245578 249878 -730 696 -295 3379 300 159 643 591222599 41287313 260000 8t0 33700 255510 259910 1839 1754 -744 HS 300 219 638 5972236 62 412286376 270000 1110 33700 265369 269769 3449 3259 -1396 HS 300 260 761 597225206 41286242 280000 1410 33700 276127 279527 -5554 5297 -2248 HS 300 291 965 567227222 41285414 290000 1710 33700 234758 289158 -8150 7772 3299 HS 300 316 1209 597229709 41284392 300000 2010 33700 294234 293634 -11225 10707 -4545 HS 300 337 1474 597232659 41283140 310000 2310 33700 303531 307931 -14741 11096 5953 HS 300 355 1750 597236063 41281751 320000 2610 33700 312672 317022 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672466 515333 491433 208601 H5 000 564 5156 597715677 41054741 960000 5800 33700 673356 677'66 523519 499239 211915 HS 000 565 5156 557723520 41081518 570000 5800 33700 671665 683165 531705 507046 215223 HS 000 566 5156 597731364 41078296 980000 5800 33700 653964 688364 -539891 514552 218542 05 000 566 5156 597739208 41075073 990000 5500 33700 359263 693663 545077 522658 -221856 HS 000 567 5156 597747051 41071851 10000 00 5100 337M 6945 62 6959 62 -5562 63 5304 65 -2251 69 HS 0 00 563 51 56 5977548 95 410656 29 10100 00 58 00 337 00 6998 61 7042 61 5644 49 5352 71 -223482 HS 0 00 569 51 56 5977627 38 41065406 1020000 5800 33700 705161 709561 -572635 546077 731796 05 000 569 5156 597770582 41062184 1030000 5800 33700 710460 711860 580821 553884 -235110 HS 000 570 5156 597778425 41055962 PBHL 1037247 5500 33700 714300 718700 -586753 559541 -237511 000 571 5156 597784109 41056626 Survey Type Non-Def Plan Survey Error Model ISCWSA Rev 0"'3-09500056 Confidence 27955 Iorny Survey Program Description MD From MD To EOU Freq Hol.Slat.Casing Diemen* Survey Tool Type gor.hol./Survey (R) (e) (R) Pn) 00 0000 29000 1/100000 30000 30000 SLB_MWO.STO Depth Only 0-3/0.3Sc.cano 12 29000 2330000 1/100000 30000 30000 5L8_MWO-ST5 0-3/0.3 Scanano0412 2330000 10372467 1/1000110 30000 30000 0L8_MWD-0T0 03410-34S5era7n 14 Drilling Office 2 6 1120.0 Repsol Exploration\Q-3\Q-3\Q-3A\Q-3A Scenario 14 12/30/2012 1.32 AM Page 1 of 1 RER10L -411111111- Schlumberger WELL STRUCTURE Q-3 and Q-3A scenario 14 Repsol Exploration Q-3 Model:Perem M 2 Surface Bion See Alaska Slate Plana,Zone 04,DS Feel Miscellaneous EC E't j��+s%D Magri BOOM 2011 Dip: 80.851° De1e: July 25,2012 Lel: Loch 70 20 2.216 NOMiig: DAD,Alaska Grid Com:U0866° Slot:Miscellaneous 0-3Scenario l0 Saye ,Yr 1G.. Mag Dec' 20.006° FS: 5/606.1nT Lan: W150 42 24.436 EaM'xg: 012816.00 PUS Scale Fed:0.88000882 Plan: 0.36 Scenario l6 p, -4000 -3000 -2000 -1000 0 1000 MAR 2W4 2013 • Ao SIA C C 6000 •-•^ 4 4 ? 4 4 -- 6000 0-3A SceCario 14 i,3 I\ N PBHL —_ 5000 4 4 4 4 -° 5000 1. Target depth 4000 4 ...polygon Target 4 4 4 4 - 4000 Drillers Polygon Target I A 3000 .,} 4 a 4 4 4 -• 3000 A A Z 0 0 0 II 2000 4 4 4 4--- 4 -4 4°° 2000 w cnI . cn v v v 1000 a 4 4 a 4- 4-- 1000 EOC ---...,..N �lwr�a Surface Location KOP-3/100 0 a a 4 -• 0 Tie In.KOP-3/100 EOC f r rye-Hold) -1000 .4 •4 4 4 4... 4 4-° -1000 CTarot 3 I Very Small Polygon. -2000 4. - 4 4°° -2000 • PBH i 0-3 Scenario 12 -4000 -3000 -2000 -1000 0 1000 2000 • • «< W Scale=1:1000(ft) E >>> • PS Or. Schlumberger WEL, Il I $,Ut'.JH: Q-3A(P14) Repsol Exploration Q-3 Magna.Parameters Surface Laceborl NAD27 Alaska Stele Plane,Zone 00.US FM Mallanaol- Model: BGGM 2011 Dip. 10361 Dale: July 25,2012 LW'. N 7020 2.216 Northing'. 59722190011US Grid Com:-0888° Slot. 0.3 Scarer010 TVD Rat RKB1448 above MSL) Meg Dec: 20000° FS: 57608.1 nT Lan: W 150 42 24.436 Easing: 41281000 SUS Scale Fact'.0.90900802 Plan: 0-3A Seenar204 Soy Date:July 02 J • WIZ T O T/Vi a3n13038 -6000 -4500 -3000 -1500 0 1500 0 0 1500 1500 L Surface Casing Tie In.KOP-3/100 KOP-31100 3000 3000 EOC(Curve-Mord) •0 EOC 4500 - 4500 To U 1n a 1— 6000 6000 Target depth Very Small Polygon. PEN Target •-3A Scenario 14 7500 7500 9000 • 9000 0-3 Scenario 12 - PBHL -6000 -4500 -3000 -1500 0 1500 Vertical Section(ft)Azim=172.14°Scale= 1:1500(ft) Origin=0 N/-S,0 E/-W REPJOL HALLIBURTON DRILLING FLUIDS PROGRAM Operator:Repsol USA Well Name: Qugruk#3&3A Location:Alaska Version 1.2 Prepared by Mr.Chris MacKinnon Technical Professional Chris.MacKinnon(a�Halliburton.com Office-907-275-2617 Cell-907-227-5045 Author/Owner Approver Approvers Name: Chris MacKinnon David Higbie Amanda Dial Title: Tech Proff. Operations Lead ODE Date: Jan.18,2013 Jan.18,2013 Signature: HALLIBURTON Harold HALLIBLJRTCM1 REPlOt Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Mud Program Distribution Name Position Document Version Date Allen Livingston,Amanda Dial,Tim Flynn Repsol ODE 1.0 Nov.12,2012 Dave Higbie Halliburton Ops Leader 1.0 Nov.9,2012 Allen Livingston,Amanda Dial,Tim Flynn Repsol ODE 1.1 Nov.16,2012 Allen Livingston,Amanda Dial,Tim Flynn Repsol ODE's 1.2 Jan.18,2013 The table above will serve as a record of distribution control for the approved program,both hard copy and electonic copies shall be logged into the above table. Program Amendment and MOC Record Version.# Date Author Description MOC Document number 1.0 11/12/12 Mackinnon Original draft submitted to Repsol for approval 1.1 11/16/12 MacKinnon Ammended Draft submitted to Repsol ODE's for approval 1.2 1/18/13 MacKinnon Ammended Draft submitted to Repsol ODE's for approval The table above will serve as a record of ammendments submitted for the well. The Management of Change(MOC)process must be followed for changes made to the drilling fluids program after the spud date. Well Data provided bvRepsol Data Provided Document Identifier Date Received Used in Preparation of this Halliburton Program Y/N Approver Wellbore Schematic Qugruk#3 ver 1 11-07-12 Y C.MacKinnon SLB Directional Plan Scenario 12 11-07-12 Y C.MacKinnon Scope Change Documentation No Scope Changes to date Well Data Operator Repsol USA Well No. Qugruk#3&3A Field/Block Coleville River Delta PBU Location Alaska/U.S.A Well Type Exploration Max.Well Inclination Q3-19°;Q3A-58° Maximum Expected Mud Density Q3-10.4 ppg;Q3A-10.8 ppg Estimated Days 74 Days Anticipated BHST at Total Depth of well 195°F Baroid Project Support Team Title Name Cell Number Office Number Email address Technical Professional Chris MacKinnon (907)227-5045 (907)275-2617 Chris.Mackinnon(a)Ha1L Operations Leader David Higbie (907)242.7105 (907)275-2631 David.Higbie@a.Halliburton.com Lead Mud Eng. Lead Mud Eng. Night Mud Eng. Night Mud Eng. Stock-point Manager John Jessup/Brent Edmunds (907)943-1028 (907)659-2422 hn..lessupgllallibunon.com Bren ;dmunds@Halliburton.com 2 HALLIBIJRTON F3aroid REPlOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Program Briefing Qugruk#3 will be drilled from an exploratory ice pad on the Northeast side of the Coleville River in Prudhoe Bay Alaska using Nabors rig 7ES. The ice road to the exploratory pad will depart Kuparuk from the 2M drill site. A 20"conductor will be driven/drilled in place to+/-80 ft and cemented. The 16"surface hole will be drilled from 80 ft through the base of the permafrost to TD using conventional bentonite spud mud weighted to 9.8 ppg.The MW will be allowed to rise to 10.0 ppg by the base of the permafrost(+/-1,070'TVD)with the addition of BARACARB 25-50 or drill solids.3-5 lb/bbl background LCM consisting of BARACARB 25-50 will be used through the surface hole section to reduce lost circulation potential.The surface hole will be drilled to TD at 2,214'MD.13 3/8"68#casing will be run and cemented. The 12''A"pilot hole will be drilled ahead from the 13 3/8"casing shoe to the expected TD depth of 9,306'using a 6%KCUPHPA drilling fluid weighted to 10.2 ppg to begin and 10.4 ppg by the top of HRZ.Depending on bit balling tendencies of the Q-1 pilot hole,the KCl concentration may be raised to 12%if problems are seen. The well will build angle to 19.6°through to the core point at 6,945'MD. 3-5 lb/bbl of background LCM(Wal-Nut)will be used through this section if bit balling through the heavy clay sections becomes an issue.Discontinue Wal-Nut usage if bit balling is not seen.The mud weight will be ramped up to 10.4 ppg by 6,235'TVD. BDF-515 and BAROTROL+(shale stabilization)will be added prior to drilling into the HRZ.Begin this MW ramp up 500 ft prior to entering the HRZ.The well will be conditioned for multiple wireline logging runs beginning at+/-7510'MD and at TD depth of+/-9306'MD. After the logging program is completed,a series of cement plugs will be pumped to P&A the section. An 8'A"sidetrack will be performed from just outside the 13 3/8"casing shoe,using the top cement plug as the KOP. The 8'A"Q3-A sidetrack will be drilled ahead from just below the 13 3/8"casing shoe. Building angle to 58°and holding to TD depth of 10,372'.This section will be drilled using the 6%KCUPHPA mud system weighted from 10.4 ppg to 10.8 ppg prior to the HRZ top at 6,240'TVD. The 3-5 lb/bbl background LCM(Wal-Nut) strategy used in the 12.25"hole section will also be used in this hole section to combat bit balling incidents. MW through these sections are based upon polar plot and offset data,actual MW will be based upon dictating wellbore conditions. Well Desien Summary Hole Size Casing/Tubing TD(ft) TVD(ft) Inc.(deg) Feet Drilled Mud System Mud Density Interval (in) Size(in) Max (ft) (ppg) Name 16" 13 3 8" 2,214 2,214 0 2,214 Bentonite 9.8.10.0 Surface Spud Mud 0 12.25" NA 9,306 8,939 19.63 7,206 KCUPHPA 10.2-10.4 Production 0 8.5" NA 10,372 7,143 58.0 8,172 KCUPHPA 10.4-10.8 Sidetrack 03 Surface Interval Casing Size (in) End Depth(ft) 13 3/8 68# 2,214'MD Drilling Fluid System 9.8-10.0 ppg Bentonite Spud Mud Products Required Aquagel,Soda Ash,Dril-N-Slide,Caustic Soda,Baracarb,Barite Shakers:Begin with—80 mesh screens,screen up as flow rates and solids allow. Recommended Solids Control Mud Cleaner:Begin with 3/8-1/2"orifaces on the mud cleaner.Ensure>35 psi head pressure at each cone. Centrifuge:Run as necessary to balanceLGS and necessary MW. Sloughing Gravel Maintain viscosity to cary gravel out of Potential Problems Solutions wellbore Heavy Clay Intervals Utilize Condet/Dril-N-Slide to minimize shaker blinding from sticky clay. Interval Objectives Maintain Well Control Run and cement 13 3/8"casing Restricted Products None 3 HALL1BIJRTON Mir— — Elaruici REPlOL Qugruk#3 ver. 1.2 _Prudhoe Bay AK/U.S.A. Formation Tons Estimated Expected Pore Pressure Formation Formation Top (EMW ppg) (TVDSS) BPRF 1,070 9.0 Schrader Bluff 2,070 8.8 Upper Cretaceous 2,220 8.8 Surface Interval Fluid Target Properties Interval Fluid:Slud Mud Mud Weight Funnel Vis API MD(ft) (lb/gal) (sec/qt) YP PH (m1) MBT 0-2,214 9.8-10.0 125-275 25-40 >9.0 <14.0 20-25 Spud Mud Fluid Formulation Product Concentration Cold Lake Water 0.94 bbl SODA ASH 0.15 ppb AQUAGEL 25 ppb X-TEND II 0.1 ppb CAUSTIC SODA 0.1 ppb (9.0-10.0 pH) BARACARB 25-50 3-5 ppb Background BAROID 41 70 ppb (9.8 ppg) PAC-L As needed to reduce API wl DRIL-N-SLIDE/Condet Premix As needed for sticky Clay • Have the rig or Baroid mud plant mix—600 bbl 9.8 ppg Spud Mud and deliver to the wellsite. • Ensure rig pits and lines are clean prior to offloading any new 9.8 ppg mud from trucks. Surface Interval Operations Summary • Drill ahead maintaining all product concentrations while adding dilution mud or cold lake water. • Run background BARACARB 25-50 at 3-5 lb/bbl for bridging to minimize lost circulation events through the unconsolidated formations seen in Prudhoe Bay surface hole sections. • Begin drilling with 9.8 ppg MW and allow drill solids and Baracarb to increase the MW to 10.0 by the base of Permafrost. Use Barite if necessary to maintain 10.0 ppg MW. • Maximize the usage of all solids control equipment,screen up when possible and run the centrifuge to reduce LGS and maintain MW. • Utilize cold lake water for rig site dilution fluid. • Maintain>500 gpm pump rate while drilling ahead. Utilize DFG 5.4 for realtime modeling of hole cleaning abilities. Adjust fluid rheology,pipe rotation (RPM)and ROP based on the ability to clean the hole. • In preparation of running the 13 3/8"casing,ensure native solids(LGS)content is<10%. • Check with cementers to target a YP while circulating the casing on bottom. Use Desco CF to obtain the desired YP. Well Concerns • Follow all REPSOL-Halliburton processes and Procedures • Truck Usage Volumes-Track the truck utilization volumes using the TFM spreadsheet. CH2Mhill trucks are maximized at 90%of their carrying capacity for every load hauled,and less when heavy fluids are hauled. Attempt to load Vac trucks and Super Suckers to their 90%maximum volume,always taking rig time into account while anticipating trucking wait times. Give logistics dispatchers>24 hours advance notice prior to jobs requiring multiple trucks on location. • Hole Cleaning—Run DFG 5.4 while drilling to monitor hole cleaning capabilities using real time ROP,RPM and pump rates.The continual loading of drill solids into the mud system will change the rheological properties of the mud. Utilize all solids control equipment.Be prepared to dilute by means of water or whole mud to diminish the effects of the drill solids. • Lost Returns—Losses are not expected through the surface hole section,although a full compliment of LCM contingency products will be available on location should losses occur. • Well Control—Rig hands and Mud Engineers both,shall constantly be aware of mud density measurements,trip volumes and pit volumes to ensure good well control practices are followed. 4 HI4LL1BlJRTON iearotd REPlOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Surface Hole ROP/Puntn Rates Rheology and pump rate are critical factors in cleaning this verticle wellbore. Consider the following practices if hole cleaning becomes an issue: • Hole cleaning sweeps(change flow regime of base mud by using rheology for carrying capacity). • Connection practices-employing extended gpm,rpm and back reaming,prior to the connection. Maximum Acceptable ROP in f h at Specified GPM and RPM GPM 400 450 500 550 100-rpm 78 91 103 124 146 Calculated using 4%maximum cuttings load • Shallow Gas Potential— o A gas influx on an offset well was experienced at a depth of 2500'TVD on Well Fiord#2. Mud weight was 9.2 ppg when the event occurred, BOP's were in place and the well was killed with a 9.4 ppg fluid. The mud weight was increased to 9.7 ppg and no other problems were encountered. o A well control event occurred on Qugruk#2(4 miles to the West)while drilling with 9.2 ppg mud at 2523'MD. The design of this well has the surface casing being set above the Tulavak and mud weight in excess of 10.2 ppg will be used to drill the production section. 93 12-1/4"Hole Interval Casing Size (in) End Depth(ft) NA 9,306' \ID Drilling Fluid 10.2-10.4 ppg.6%KCl/PHPA System Potassium Chloride(KCI),BARAZAN D+,PAC-L,EZ Mud DP,Caustic Soda,BAROID 41, Main Products DRIL-N-SLIDE,ALDACIDE G,BARACOR 700,BARASCAV D,BDF-515,BAROTROL PLUS Recommended Shakers:165+mesh screens,screen up as solids loading on screens diminishes Solids Control Mud Cleaner:3/8"cone oriface Centrifuge:As necessary to balance MW and I.GS buildup Bad displacement Maximize pump rate and pipe rotation Lost Circulation Have excess LCM products available on location Potential Problems Solutions Use DRIL-N-SLIDE/Condet,for shaker Sticky Clay blinding,background Walnut to alleviate bit balling.Use 3-5 ppb Wal-Nut while drilling through sticky clay sections to help prevent bit balling. Drill Objectives to core depth(6,925')Core 180 ftru .Drill ahead to 9,306'TD depth and n wireline logs. Minimize rig down time due to trips. Restricted None Products 5 HALL1BURTON MOP' Garold REPlOt Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Formation Tops Estimated Expected Pore Pressure Formation Formation Top (EMW Ppb) (TVDSS) Tuluvak 2,430 9.8 Torok 4,952 9.0 HRZ 6,235 9.4 KuparukC 6,515 9.4 Kingak 6,520 9.4 Alpine 6,668 9.4 Nuiqsut 6,905 9.7 J2 7,905 10.1 Shublik 8,545 10.1 TD 8,995 10.0 12-1/4"Hole Fluid Target Properties Interval Fluid:6%KCl/PHPA Mud Plastic API HTHP in MD Weight Viscosity Yield Point Cl MBT oil) pH LGS% Shale(ml) 2,214'-9,306' 10.2-10.4 12-24 18-25 30k <15 <5 9.0-10 <6.5% <10.0 12-1/4"Hole Fluid Formulation Product Concentration Water 0.89 bbl BARAZAN D+ 1 ppb KCI 22 ppb PAC L 2 ppb CAUSTIC SODA 0.1 ppb (9.0-10.0 pH) BAROID 41 89 ppb (as needed for 10.2) ALDACIDE G 0.2 ppb CONDET Premix .5% (Mixed at LMP only) EZ MUD DP .75-1.0 ppb(Mud plant mix 0.15 ppb max add remainder at rigsite) BARACOR 700 1.0 ppb BARASCAV D 0.5 ppb DRIL-N-SLIDE 0.5-1.0%(For clays from rigsite) BDF-515 4.0 ppb (added prior to HRZ) BAROTROL PLUS 4.0 ppb (added prior to HRZ) Displacement Procedure Recommendation • Clean the rig pits of the surface fluid and flush all of the surface equipment and lines prior to taking onboard the new 6%KCl/PHPA fluid. • After tagging the landing collar and drilling it out,pump a 50 bbl HI-VIS spacer,followed by the 10.2ppg KCl/PHPA mud.Watch the shakers for KCl/PHPA returns before routing to active system.Plan to pretreat for cement contamination with Citric Acid and bicarb.Do not add Baracor 700 until after finished drilling cement,as the cement will cause the Baracor 700 to precipitate out of the fluid. 12-1/4"Hole Interval Operations Summary • Drill ahead maintaining all product concentrations while adding dilution fluid. • Add 3-5 ppb Walnut as background LCM/bit scouring method to help prevent bit balling caused by sticky clays. Dril-N-Slide/Condet will also help to clean the BHA and shakers of the sticky clays. • Maximize the usage of all solids control equipment,screen up where possible and run the centrifuge to minimize LGS and maintain correct MW. • Ramp up MW to 10.4 ppg beginning 500 ft prior to HRZ. Add BDF-515 and BAROTROL+for shale stabilization.10.4 ppg is the minimum MW requirement from HRZ to TD. 6 HALLIBLJRTON ---- Baroid ^ REPlOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. • Utilize fresh water or 6-8%KCI water for rig site dilution if LGS begin to rise above the recommended<6.5%. • Maintain>500 gpm pump rate while drilling ahead. Utilize DFG 5.4 for realtime modeling of hole cleaning abilities. Adjust fluid rheology,pipe rotation (RPM)and ROP based on the ability to clean the hole. • Lost Returns—A full compliment of LCM contingency products will be available on location should losses occur. • Corrosion Mitigation Plan—As part of the corrosion mitigation plan,Sodium Sulfite and Baracor 700 will be run in the 6%KC1/PHPA fluid system to mitigate corrosion.Daily phosphonate and dissolved 02 checks will be run to monitor this program. Phosphonate levels should be maintained between 250- 850 ppm. Dissolved 02 should be kept at 1 ppm or lower. Record levels of each on the daily mud reports. Coring Inter al • The core point for this interval begins at 6,945 ft MD. While coring add 10 sx hr of BARACARB 25 and or BARACARB 50 for bridging during the coring operation. 12-1/4" Hole ROP/Pump Rates Rheology and pump rate are critical factors in cleaning this vertical wellbore. Consider the following practices if hole cleaning becomes an issue: • Extended periods of circulation(with maximum pump rate). • Hole cleaning sweeps(change flow regime of base mud by using rheology for carrying capacity). • Connection practices-employing extended gpm,rpm and back reaming,prior to the connection. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 550 600 80-rpm 171 210 234 ------0=3A-Sidetrack Casing Size (in) End Depth(ft) NA 10,372'MD Drilling Fluid 10.4-10.8 6%KCl/PHPA System ppg' Potassium Chloride(KCI),BARAZAN D+,PAC-L,EZ Mud DP,Caustic Soda,BAROID 41, Main Products DRIL-N-SLIDE,ALDACIDE G,BARACOR 700,BARASCAV D,BDF-515,BAROTROL PLUS,EZ GLIDE Recommended Shakers:165+mesh screens,screen up as solids loading on screens diminishes Solids Control Mud Cleaner:3/8"cone oriface Centrifuge:As necessary to balance MW and 1.GS buildup Bad displacement Maximize pump rate and pipe rotation Lost Circulation Have excess LCM products available on Potential Problems Solutions location Sticky Clay Use DRIL-N-SLIDE,background Walnut to alleviate bit balling and shaker blinding Interval Objectives Drill 8 Y2"hole to 10,372'building angle to 58°.LWD tools to monitor while drilling. Pump abandonment plugs to P&A. Restricted None Products O-3A Fluid Target Properties Interval Fluid:6%KCI/PHPA Mud Plastic API HTHP in MD Weight Viscosity Yield Point Cl MBT (ml) pH LGS% Shale(ml) • 2,330'—10,372' 10.4-10.8 12-24 18-25 30k <15 <5 9.0-10 <6.5% <10.0 7 HALLIBIJRT�I� low REPJ Ot Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. O-3A Fluid Formulation Product Concentration Water 0.89 hhl BARAZAN D+ 1 ppb KCl 22 ppb PAC L 2 ppb CAUSTIC SODA 0.1 ppb (9.0-10.0 pH) BAROID 41 89 ppb (as needed for 10.4) ALDACIDE G 0.2 ppb CONDET Premix .5% (Mixed at LMP only) EZ MUD DP .75-1.0 ppb(Mud plant mix 0.15 ppb max add remainder at rigsite) BARACOR 700 1.0 ppb BARASCAV D 0.5 ppb EZ GLIDE or NXS-Lube As necessary DRIL-N-SLIDE 0.5-1.0%(For clays from rigsite) BDF-515 4.0 ppb (added prior to HRZ) BAROTROL PLUS 4.0 ppb (added prior to HRZ) Displacement Procedure Recommendation • Attempt to reuse the previous Pilot Hole Interval drilling fluid 6%KCl/PHPA. Use a dilution fluid blended with the reused fluid if the LGS content is high. • After tagging the cement KOP,blend any dilution fluid with the reused system while attempting to sidetrack. Q-3A Interval Operations Summary • Drill ahead maintaining all product concentrations while adding dilution fluid. • Add 3-5 ppb Walnut as background LCM/bit scouring method to help prevent bit balling caused by sticky clays. Dril-N-Slide/Condet will also help to clean the BHA and shakers of the sticky clays. Utilize the Well Commander circ sub to spot LCM • Maximize the usage of all solids control equipment,screen up where possible and run the centrifuge to minimize LGS and maintain correct MW. • Ramp up MW to 10.8 ppg beginning 500 ft prior to HRZ. Add BDF-515 and BAROTROL+for shale stabilization.10.8 ppg is the minimum MW requirement Trim HKZ to TD. • Utilize water for rig site dilution if LGS begin to rise above the recommended<6.5%. • Maintain>500 gpm pump rate while drilling ahead. Utilize DFG 5.4 for realtime modeling of hole cleaning abilities. Adjust fluid rheology,pipe rotation (RPM)and ROP based on the ability to clean the hole. • Should lubricants be required,add 1-2%EZ GLIDE or NXS-Lube.Call town prior to going over 2%. Well Concerns • Follow all REPSOL-Halliburton processes and Procedures • Truck Usage Volumes-Track the truck utilization volumes using the TFM spreadsheet. CH2Mhill trucks are maximized at 90%of their carrying capacity for every load hauled,and less when heavy fluids are hauled. Attempt to load Vac trucks and Super Suckers to their 90%maximum volume,always taking rig time into account while anticipating trucking wait times. Give logistics dispatchers>24 hours advance notice prior to jobs requiring multiple trucks on location. • Hole Cleaning—Run DFG 5.4 while drilling to monitor hole cleaning capabilities using real time ROP,RPM and pump rates.The continual loading of drill solids into the mud system will change the rheological properties of the mud. Utilize all solids control equipment.Be prepared to dilute by means of water or whole mud to diminish the effects of the drill solids. • Lost Returns—A full compliment of LCM contingency products will be available on location should losses occur. • Well Control—Rig hands and Mud Engineers both,shall constantly be aware of mud density measurements,trip volumes and pit volumes to ensure good well control practices are followed. Q-3A ROP/Pump Rates Rheology,rotation and pump rate are critical factors in cleaning this deviated wellbore. Consider the following practices if hole cleaning becomes an issue: • Extended periods of circulation(with maximum pump rate and pipe rotation). • Hole cleaning sweeps(change flow regime of base mud by using mud density or rheology for carrying capacity). • Connection practices-employing extended gpm,rpm and back reaming,prior to the connection. 8 1-1.0.1L1BLJRTON _._ Bar^otci REPJOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 550 600 80-rpm 162 180 193 100-rpm 182 193 214 120 rpm 193 216 230 Calculated using 3%maximum cuttings load SCE Recommendations Shakers • Multiple,High-G,linear motion shale shakers are recommended in order to maximize the system solids control removal efficiency.Run all available solids control equipment to prevent solids build-up. >200 mesh screens should be achievable for this pilot hole section. • All shale shakers should be"screened up"with finer mesh screens whenever possible without the loss of any drilling fluid off the end of the shakers. • The shale shakers should be continuously monitored for the proper distribution of drilling fluid across the screens to fully utilize the entire surface area of the screens. The drilling fluid should cover+3/4 of the entire screen length. • Damaged screens should be promptly changed and noted on the daily mud report screen usage column. • If near size particle blinding occurs,an attempt should be made to"screen-up"to alleviate this problem. If"screening-up"does not solve this situation,then coarser mesh screens must be installed until past this formation. • Sticky clays and heavy oils are prevalent in Prudhoe Bay surface holes and shallow intermediate hole sections. Use DRIL-N-SLIDE to remedy the screen blinding seen while drilling sticky clay and heavy oil formations. Mud Cleaner • It is recommended to use a mud cleaner to accomplish the maximum removal of drill solids.The oriface should be as small as possible while utilizing the mud cleaner for this purpose.This will maximize the drill solids removal efficiency while maintaining drilling fluid properties within the prescribed parameters specific to this area and interval formation characteristics. • Check to see that the Mud Cleaner cones are cleaned and in good operational spec prior to drilling the hole section. • Ensure head pressure to the mud cleaner cone manifold is>_35 psi. This is the minimum recommended pressure for each cone to acquire the vortex necessary to strip solids from the drilling fluid. Centrifuge • While drilling ahead,maintain LGS content and MW increases through use of the centrifuge. 9 HALL 11E3 URTO N Baroid _, REPJOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Well Cost/Volumes(Cubic/bbls) Estimated Fluid Disposal Volumes Dilution rates for the 16"surface interval are anticipated at 1.24 bbl/ft. Surface P10 P50 P90 Initial Build 550 600 650 Dilution 1890 2604 3150 Total 2440 3204 3800 Estimated Drill Solids Disposal Volumes Surface PIO P50 P90 Cuttings Volume 522 653 783 Wetting Fluid 652 1143 1566 Total 11741796 2349 Estimated Fluid Disposal Volumes Dilution rates for the 12.25"Pilot interval are anticipated at 0.55 bbl/fl. Pilot PLO P50 P90 Initial Build 858 908 958 Dilution 2842 3908 5329 Total 3700 4816 6288 I Estimated Drill Solids Disposal Volumes Pilot P10 P50 P90 Cuttings Volume 1036 1295 1450 Wetting Fluid 1036 1943 2755 Total 2072 3238 4205 Estimated Fluid Disposal Volumes Dilution rates for the 8.5"ST-1 interval are anticipated at 0.5 hhl/ft. Q-3A PI() P50 P90 Initial Build 227 454 681 Dilution 3269 4086 6129 Total 3496 4540 6810 Estimated Drill Solids Disposal Volumes Q-3A P10 P50 P90 Cuttings Volume 574 688 861 Wetting Fluid 373 550 1291 Total 947 1238 2152 Total Well Cost P10 P50 P90 Surface $78,233 $100,752 $121,064 Pilot $302,250 $389,450 $521,101 Q-3A $304,430 $392,450 $585,300 Total $684,913 $882,652 $1,227,465 10 HALLIBLJRTON :- Baru i cf REPJOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Appendices • Surface Hole Hydraulics • Pilot Hole Hydraulics • Q3A Hydraulics • LCM Decision Trees 11 HALLIBIJRTOIV millir REPlOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. 03 Surface Hole Hydraulics DFG 5.4 DrillAhead 4 Spud Mud 3.396%Cutting Total Flow Rate=600 gpm ROP=103.08thr 3.305%Cuthno Elf Density=10.000 ppg Cutting Dia=0250 in R=100%6103.011fir-100.0 RPM MC=100.0 RPM-4m IC�am; I. c C1 ' 1: REPSOL Qugruk#3 ver. 1.2 Prudhoe Bay AK!U.S.A. 03 Production Hole Hydraulics DFG 54 DrillAhead® 6%KCl/PHPA 2.954%Cutting Total Flob Rate.550 gpm ROP=210.011/hr 2.966%Cutting Eff Density.-10.400 ppg _o_CuttlEcnog vD.:::0.150:.. R.100%C 210.0 ft/hr.80.0 RPM;HC.80.0 RPM-4m IC-Sm/ • 11 • '. ... . ., ‘ ..'''• . I ., . . .. :., . . — " '....,:: — I .)---',-'.;.'•_r': _ . : ' , ,.-;.: :.?i. I. .v-t__-. _4 -• •I i ' ' • -. H -I , -., '-'ir7T,:;.- "..:.;' - ...• g 4— '. V-t: , . '' ,• '. ,.-- ..frz4.;,,,,.., ..t.• - . I 'r`,.,&,,r.: .4 • '•i'-'44.4 .., _ . . .., vl , I ' .:;','; ..'i • '.. :. ' ._ . .. ... „.,....,.... . .i......,-,,,..., : -r' • 30 60 40 13. 1 Cutting Load Transport Eff Average V HoleAngle ECD Wellbore I'd ( avg) (ft/min) 11 (PPM on) '3 HA.L.L.I EI UR TO NI I, Baroid REP5OL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. 0-3A Hydraulics DFG 5.4 DrillAhead® 6%KCl/PHPA 2.742%Cutting Total Flow Rate-550 gym ROP.193.0 ft/hr 2.914%Cutting Elf Density.10.800 ppg Cutting Dia=0.150 in R.100%(5 193.0 thr-100.0 RPM IHC=100.0 RPM-4m IC.im/ -- - C: ',:.:.f. _q__ .'. — , — , — 1,..`,. c,-,1,1t, ':. •1-.'''- - *7A, '.,•,:,'.1::1 = 1 2500 2455; - - c ''' li i - • ',.' • • .. , .. ., ' 1 , . .., 5000 Sg!4296! r`. ,/ i:.!:•'' .% 7500 ': ".- ,*' • i56211 -- . 1 t 1 . 4' 1E01-r ' I I I 330 1-.,". 7; 33 53 50 13 1 12.1 14 -15 -10 -5 0 5 1: •f Cutting Load Transport Et` Average V Hole Angle ECD Wellbore (ftiminj Ii (PPO) (in) 14 t—{ALLIBLJ. TQN u REPJOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Lost Circulation Decision tree Losses Lost Circulation Decision Tree fl Intermediate Hole Sections • + + Seepage Partial Severe Total 5.20 bbl/hr Static 20-60 bbllhr 60-200 bbllhr Static >200 bbllhr Static Static i Treat Active System Treat Active System + + • with 5 sctiv Barofibre with 10 sx/hr 60-150 bbl/hr Static 150-200 bbllhr Static Drill Across Fault rBAROFIBRE + DdII Across Fault Drill Across Fault Contact Drilling + Engineer or Engineer �ynami on call Losses<15 Yes I ynamic 100 ppb LCMIMud Pill: bbllhr Losses<25 Ye 20 ppb Baroseal F Contact Drilling Engineer bbl/hr 20 ppb Baroseal M 30 ppb Barofibre or Engineer on call. No Drill Ahead Drill Ahead 20 ppb Wallnut M V 10 ppb Walnut F No POOH,PN dumb iron BHA Increase Treatment to v • 5 sx/hr Barofibre 70 ppb LCM/Mud Pill: Contact Drilling Engineer or 5 sx/hr Baracarb 50 V 20 ppb Baroseal F Consider Engineer"Onot ngl . 20 ppb Baroseal M Consider spotting EZ SQUEEZE or GUNK pill. 20 ppb Barofibre Iynamic 10 ppb Wallnut M Consider spotting EZ Losses<15 Yes SQUEEZE pill/GUNK Squeeze/ bbl/hr cementlplugback contingency Drill Ahead No 40 ppb LCMIMud Pill: Dynamic Losses<15 Yes 10 ppb Baroseal F bbl/hr 41 10 ppb Baroseal M Drill Ahead 10 ppb Barofibre _ 10 ppb Wallnut M No + Notes: �1)Drill ac oss fault or loss zone 1.5-2.0 times the length of the throw Contact Dulling 'before spotting LCM pills. Engineer or Engineer 2)Ore Sub should be run in BHA to spot pills if°Partial Loss'cases Dynamic on call to determine if or above are anticipated prior to drilling,to allow the spotting of LCM Losses<15 Yes additional LCM pills. bbl/hr treatments are to be 3)LCM pill volume=300'-600'column based upon actual hole diameter. Drill Ahead made, 4)PRIOR TO ANY LCM PILL.APPROPRIATE DISCUSSIONS AT I THE RIG SITE MUST BE MADE TO MINIMIZE THE POTENTIAL No FOR PLUGGING THE DRILL STRING.CONTACT THE MWD I VENGINEER FOR SIZING AND PPB MAXIMUM QUANTITIES Proceed to'Partial ALLOWABLE THROUGH BHA. Losses'Pill 15 HALLIBURTON r Baroid NNW REPJOt Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Losses Lost Circulation Decision Tree fl Payzone Mud Systems • • + + Seepage Partial Severe Total 5-20 bbllhr Static 20-60 bbllhr 60.200 bbllhr Static >200 bbllhr Static Static I V Treat Active System Treat Active System + + v with 5 sxlhr Baracarb with 10 sxlhr Baracarb 60-150 bbl/hr Static 150-200 bbllhr Static Drill Across Fault 50/150 150 4, 4 + Drill Across Fault Drill Across Fault Contact Drilling + + Engineer or Engineer �ynami Dynamic loo ppb LCMIMud Pill: Contact Drilling Engineer on call Losses<15 Yes Losses<15 Yes 20 ppb Baroseal t or Engineer on call bbl/hr I bbllhr 20 ppb Baracarb 50 Consider drill ahead wl 30 ppb Barofibre Drill Ahead Drill Ahead 20 ppb SteelSeal seawater V No 10 ppb Baracarb 150 Consider drilling ahead V No without returns Increase Treatment to V • 10 sx/hr Baracarb 50/ 50 ppb LCMIMud Pill: 150 Contact Drilling Engineer or 20 bbls Base mud Engineer"On Call". Consider drill ahead w/ 10 ppb Baracarb 25 seawater 20 ppb Baracarb 50 Dynamic 20 ppb Baracarb 150 Losses<15 Yes bbl/hr Drill Ahead No v 20 ppb LCMIMud Pill: Yes D Losses< <namic 20 Yes 20 bbls base mud bbllhr 10 ppb Baracarb 50 Drill Ahead 10 ppb Baracarb 150 No V 1)ODE must approve any steps past PARTIAL losses. Contact the Engineer 2)Drill across fault or loss zone 1.5-2.0 times the length of the Dynamic on call to determine if :throw before spotting LCM pills. 3)PBL sub should be run in BHA to spot pills it'Partial Loss'cases or Losses<15 Yes additional LCM above are anticipated prior to dulling to allow the spotting of LCM bbl/hr treatments are to be pills. made 4)LCM pill volume=300'-600'column based upon actual hole Drill Ahead diameter. 5)PRIOR TO ANY LCM PILL.APPROPRIATE DISCUSSIONS AT No 1THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRILL STRING. Proceed to'Partial Losses'Pill 16 HALLIBURTON Garold REP-COL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. Testine at the Wellsite • During normal drilling operations one complete mud check should be run every 6 hours This is a total of four complete checks made over a 24 hour period. Timing for mud checks and cost cut off should begin at 12 01 am each day Unusual circumstances and/or non circulating periods should dictate deviations from this schedule. • All rheological properties(ie 6 speed readings,LSRV and gel strengths,including 30 minute gels)will be taken at the standard 120°F unless otherwise specified Routine Samnling • Mud samples(1 QT)should be sent in any time the need arises,ie.hole problems or lubricant problems • Samples of the mud plant built fluids will be tested prior to shipment to the rig site and saved until the well is completed. Samples must be logged on appropriate sample tracking form. • Samples of new mud delivered to the rig site will be checked for weight and rheology at a minimum prior to offloading into the rig pits HSE at the Wellsite Health • All rig personnel should have access to current/up to date MSDS sheets and PPE required by MSDS sheets for every drilling fluid product on location.An MSDS book must be retained in the rig pits,and Mud Lab These hooks will be maintained by the onsite mud engineer Additionally quick reference PPE charts for specific products will be posted in the rig pits and the mud lab These charts are by no means an MSDS replacement Always read and adhere to the MSDS sheet prior to handling any drilling fluid products • Rig Crew Pretour meetings are a good platform to discuss upcoming product mixes and HSE requirements Environment • Ensure all sack products stored outside are shielded from the arctic weather with plastic or a box • Do not store single sacks outside of a box. • Attempt to use all opened,partial sacks. • Proper planning for necessary products in the pits will diminish the"Hurry up"factor Properly planned events create less opportunity for mishaps 17 HALLIBURTDN Asia Baroid _ REPJOL Qugruk#3 ver. 1.2 Prudhoe Bay AK/U.S.A. NFPA Ratings Product Name ealth Flammability; Reactivity PPE Aldacide G 0 0 respirator,rubber gloves,rubber apron,chemical goggles,face shield Baracarb 0 : 0 coveralls,work gloves,safety glasses Baracor 700 1 2 0 rubber gloves,chemical goggles,coveralls BaraDefoam HP 1 0 0 coveralls,rubber gloves,rubber apron,chemical goggles Baraklean 1 1 0 respirator,rubber gloves,rubber apron,chemical goggles,face shield BDF-515 1 0 0 dust mask,coveralls,work gloves,safety glasses Barascav D 2 0 0 dust mask,coveralls,work gloves,safety glasses Barazan D+ 0 0 . 0 coveralls,work gloves,safety glasses Barofibre 0 0 0 coveralls,work gloves,safety glasses Baroid 1 0 0 dust mask,coveralls,work gloves,safety glasses Baroseal 1 0 0 coveralls,work gloves,safety glasses Barotrol Plus 1 0 0 dust mask,coveralls,work gloves,safety glasses BDF-499 1 0 0 rubber gloves,rubber apron,chemical goggles,face shield Bicarbonate of soda 0 0 0 coveralls,work gloves,safety glasses Carbonox 0 1 0 coveralls,work gloves,safety glasses Caustic Soda 4 0 0 respirator,rubber gloves,rubber apron,chemical goggles,face shield CFS-520 1 0 0 coveralls,rubber gloves,rubber apron,safety goggles Citric Acid Anhydrous 1 0 , 0 respirator,rubber gloves,rubber apron,chemical goggles,face shield Desco CF 1 0 , 0 coveralls,work gloves,safety glasses Dextrid LT 0 0 0 coveralls,work gloves,safety glasses Dril-N-Slide 0 0 0 coveralls,work gloves,safety glasses EP Mudlube 1 1 0 rubber gloves,chemical goggles,coveralls EZ Glide 1 1 0 rubber gloves,safety glasses,coveralls EZ-Mud DP 1 1 0 dust mask,gloves,safety glasses Geovis XTL 1 1 0 dust mask,gloves,safety glasses Mica fine 1 0 0 coveralls,work gloves,safety glasses N-Dril HT+ 0 0 0 coveralls,work gloves,safety glasses No-Butt 1 0 0 dust mask,coveralls,work gloves,safety glasses N-Vis 0 0 0 coveralls,work gloves,safety glasses NXS-Lube 1 1 0 rubber gloves,safety glasses,coveralls PAC-L 0 0 0 coveralls,work gloves,safety glasses Potassium Chloride 1 0 0 coveralls,work gloves,safety glasses Potassium Hydroxide(KOH) 3 0 1 respirator,rubber gloves,rubber apron,chemical goggles,face shield SAPP 1 0 0 dust mask,coveralls,work gloves,safety glasses Soda Ash 2 0 0 respirator,rubber gloves,rubber apron,chemical goggles,face shield Sodium Bromide 2 0 0 dust mask,coveralls,work gloves,safety glasses Sodium Chloride 00 0 dust mask,coveralls,work gloves,safety glasses Steel Seal 1 0 0 coveralls,work gloves,safety glasses Stick-Less 20 00 0 dust mask,coveralls,work gloves,safety glasses Therma Thin 1 0 0 rubber gloves,chemical goggles,coveralls Wall-Nut M 00 0 coveralls,work gloves,safety glasses X-Cide 207 30 0 rubber gloves,rubber apron,chemical goggles,face shield X-Tend II 1 1 0 rubber gloves,chemical goggles,coveralls 18 Bettis, Patricia K (DOA) From: quick, michael (ext) [michael.quick@servexternos.repsol.com] Sent: Monday, March 04, 2013 2:53 PM To: Bettis, Patricia K(DOA) Cc: dial, amanda (ext) Subject: Directional Plots for Repsol Qugruk 3A APD Attachments: Q-3_Q-3A Scenario 14 mini plot PV.PDF; Q-3_Q-3A Scenario 14 mini plot VS.PDF Patricia— Attached are the directional plots for the application for permit to drill the Qugruk 3A well. The plots show both Qugruk 3 and 3A, but are clearly labeled. They were included in the original APD for Qugruk 3, but we failed to include them in this APD. Please let us know if you need any additional information. Regards, Mike Michael Quick Alaska D&C Operations Team Lead Repsol E&P USA, Inc 3800 Centerpoint Dr.Suite 400 Anchorage,AK 99503 MirTel..907 375 6933 /Cel.907 317 2969 michael.auickaservexternos.repsol.com REPJOL 1 OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME �J PTD# a13o3I Development Service /Exploratory Stratigraphic Test Non-Conventional Well FIELD: FXpi 7POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. _ Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 1 Ta 6E r a n a) 0 3 o 6 (o a 0) c U nm — a co O a) C r O — Q 2U 0 C N 3-°a mc Z mn E V ao a o 2 ac) o - a r c E .N a o 0 c a 2 a) .0 w o U N c0 0 U 0 m a) N o_ a = T E O r co c N 3 CC (C 3 a o - p 0) a) CO N Or • ai N > 0 C r = r E 3 ~ O CL p = 3 a) .3 @ c o -a o o N = -o ami C a m C -`0 C o m 2 a a) = co '5 . o @ Q ° u ami .3 a 2 �i a o w 0 a) c a°Ci o 3 c o _ -o a) a 0 C a ° -a x n m a O a w' (O o N a) 0 S o a) Q a) o /- rn L)) E m a c - 0. a c 3 a C N c 2 O (p _ O N_ a) a n C 0. 0 o (4 J o E 3 o 3 O v (a m m _0 CO .c(� H o I Lo 0 () m o o m a) a) o c) o O r > •ri C c' o E 0 . 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N C > +-• N o '0 N o 0 0 s c N = (o c > 0 N 0 M m 3 .c 0 3 0 -oo o a N .N a) E. o - a 2 o -0 0 v0i O c a`) a a) a) 1D T - ° 0 -00 ° o x) E a°) co .a o co -0 O ('n (n m o = °) E ;N m a i u) c m r c n Q (o Q n ° o rn _ -o o f -° o (1) c a (o a) a D 0 ` a) m 0 0 0 o a r c c a) c 0 co E E = °)o c c E• ° a`>i o c c n H lc 0 0 °ts .tea) cL a) s 0 a N' r a c c Q o o a o m ° @ c o ° m a CU c °" a) g ai a ° 3 0 > m >-. a) Cj O . 0 a) a) 'C .c C O -rn o ° 'm Y @ 0 o a) (O o ° .(O .o Q .o m N "O o rn 0 a) C N v v a) > n° o 0 o a - o E 3 3 a) 0r au 3 w a) E z w a) a c c a6 @ a) r r r@ m a a@ c n a) a) m '- a) m o w o n Ti 0 ° 3 c E T3 Q Eo co c N N a n m .3 .3 m a) a n .c = 3 m o Mo n aa)•ri- 00v°) m a •'� .5 m 3 m r a) w U a° c ..0 2 m .cc � a m oo ami .o a°i a°) >o a) E o 'o ° o o Y m o c) ) ° E a°)) m E 2 °) o a)) a `n ° c or) a a) a ° ° Q o a) n u° °n a c ° n o a) o @ m o o m E c o N 0 CO c -0 x) m ° E@ o o c m@ n _N .N 0 r S c a > > as n m m r° o 0°1 > ° 3 = a . Co m w o m `m c .E a a o N T m a) a) a) 3 C -0 c c) Q Q a`) c a - c n .r0.. m o 0 8 a) a) >. -- a) a 0 0 0 E a) ate) a) 0 a o .0 C C E a) 3 � o .(7) @@ ° CO L > 0 °o (0 o c (C c on C o c I- O C C 3 c0) c0) U C o 0 0 U 0 CC) -0 U a) O 0 = -° (6 'o (O 0 = a E ' a) c 0 N 0 '0 (n w o -- 0 a) 0 0 O U .@ C (O Q O a) d 00 > > > 0) c N 0 F c w W 0_Ne 3 (n (0 -- o_ . 9 (C I N J o aa`) alai •C a) a) a) 0 v n 0_ a`) a`) o a) 3 0 0 0 2 2 2 a a 0 -o o = 0 0 .0 ° °- aa) a) m CO a) o a 0 za -JD cn4- O0aao as 0m0000Qwaw0mm05 N2 0- 0cncn0 W a N- O N M ''''s O c0 0) 0 - N CO Cr (C) CC) N. CO 0) 0 NCO V (C) (O N- 00 CA 2 EO N M '7 co O r 00 0) ,- ,- (V (V N cV N N N N N N C) M) co co co co co co co co U (..) I-- Mc..) M N c G O = r O w 0C6 CNI d 0 U0 IX M 0 V CA 0 'CO V O cNn W o Y M c M CO N'E .J N N a) a) o C IC a o uj a UOE a a 0 - as a ss O. W Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. REPSOL EXPLORATION NORTH AMERICA MUDLOGGING DATA FINAL WELL REPORT FOR Qugruk #3A (2013 Alaska Campaign) North Slope Borough Alaska USA Provided by: Approved by: Juan Aluja Compiled by: Douglas Acker Anthony Anyamele Levi Potter Ricard Fernandez Benjamin Handley Fernando Leandro John Lundy Alejandro Martin Dylan Muller Trey Thrailkill Britten Adams Kelly Childers Distribution: 04/22/2013 T.D. Date: 04/12/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW................................................................................................2 1.1 Equipment Summary......................................................................................................................2 1.2 Mudlogging Crew............................................................................................................................3 2 WELL DETAILS.....................................................................................................................................4 2.1 Well Summary................................................................................................................................4 2.2 Hole Data........................................................................................................................................4 2.3 Well Synopsis .................................................................................................................................4 3 GEOLOGICAL DATA.............................................................................................................................5 3.1 Lithostratigraphy .............................................................................................................................5 3.2 Lithological Summary......................................................................................................................6 3.3 Hydrocarbon Shows......................................................................................................................17 3.4 Gas Peaks ....................................................................................................................................23 3.5 Sampling Program / Sample Dispatch..........................................................................................25 4 PRESSURE / FORMATION STRENGTH DATA.................................................................................32 4.1 Pore Pressure Gradient Evaluation ..............................................................................................32 4.2 Quantitative Methods....................................................................................................................33 5 DRILLING DATA..................................................................................................................................34 5.1 Daily Activity Summary .................................................................................................................34 5.2 Survey Record..............................................................................................................................36 5.3 Bit Record.....................................................................................................................................39 5.4 Mud Record ..................................................................................................................................40 6 DAILY REPORTS ................................................................................................................................41 Enclosures: 2”/100’ Master Log MD / TVD 2”/100’ Engineering Log MD / TVD 2”/100’ Geopressure Log MD / TVD 5”/100’ Gas Ratio Log MD / TVD Final Well Data on CD/ROM CONFIDENTIAL DATA TRANSMITTAL PER AS 38.05.180(8)(C) C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 2 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type / Position Total Downtime (Hrs) Comments Ditch gas QGM Agitator and Gas Trap (mounted in mud return trough) E-Series Flame Ionization Detection (FID) Total Gas and (FID) Gas Chromatograph with. C1 to nC 5 analysis (3 min cycle.) 1 Trap packing off, Agitator blade breakage Block Height/Bit depth Canrig Rigwatch Crown Encoder 0.5 Calibration Hook Load / Weight on bit Canrig Rigwatch 0 Mud Flow In Derived from Pump Rates and Pump Output 0 Mud Flow Out Canrig Rigwatch Radar Flow Meter 0 Mudlogging unit computer system HP Compaq Pentium 4 (x4: DML, Rigwatch, and Sample Catcher station) 4 Bad DML Rigwatch CPU RigWatch Server HP Linux Server 18 Power supply failure Pit Volumes, Pit Gain/Loss Canrig Rigwatch Radar Probes 0 Pump Pressure Canrig Rigwatch Stand Pipe Pressure Sensor 0 Pump stroke counters Canrig Rigwatch Proximity Sensor 0 Rate of penetration Canrig Rigwatch 0 RPM Canrig Top Drive 0 Torque Canrig Top Drive 0 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 3 1.2 Mudlogging Crew The crew consisted of veteran logging geologists filling one or more of three important positions ensuring accurate sampling, log preparation, and real-time well monitoring. Logging geologists were primarily responsible for maintaining the well log and monitoring the well. Data engineers were responsible for data management and quality control, production and posting of all log and data files, and assisting the loggers with their duties as needed. Loggers with sample catching duties ensured that mud and cuttings samples were caught at the proper time, maintaining an accurate inventory of all samples, and working with data engineers to prepare and track shipments of samples. Some loggers with sample catching duties were exchanged with other nearby wells (notably Q-1) for short periods. This was done when one well was not drilling while another was drilling at high ROP. Having teams of two sample catchers working per shift during such periods helped maintain sampling quality without jeopardizing safety. The catchers from other wells are also listed in the table below. Crew Compliment: 6 Unit Type : Arctic Steel Unit Number : ML004 PERSONNEL EXPERIENCE POSITIONS FILLED AND DAYS SPENT IN VARIOUS POSITIONS Crew Member Years 1 Data Engineer Total Days 2 Logging Geologist Total Days 2 Sample Catchers Total Days 2 Douglas Acker 3 X 13 Britten Adams 1 X 3 X 1 Kelly Childers 1 X 13 Steve Franzen 7 X 8 Benjamin Handley 3 X 23 Dan Hillegeist 1 X 1 Omar Hinostroza 5 X 2 John Lundy 35 X 4/24- Dylan Muller 1 X 4/4- X 2 Levi Potter 3 X 9 X 1 Franklin Thrailkill 1 X 9 1 Years experience as a Canrig Logging Geologist (note: All loggers are also trained as sample catchers). 2 Days at wellsite between rig up and rig down at various position(s) filled by the logger on this project. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 4 2 WELL DETAILS 2.1 Well Summary This appraisal well will consist of a highly deviated sidetrack to Q-3 that will be logged and plugged back and abandoned after evaluating the Nanushuk, Alpine and Nuiqsut Sands. Well: Qugruk #3A API Index #: 50-103-20664-01-00 Field: Appraisal Surface Coordinates: X: 412876 ft, Y: 5972219 ASP Zone 4, NAD 27 Borough: North Slope Primary Target Depth: 9647’MD/ 6724’TVD State: Alaska Total Depth: 10546’MD/ 7205’TVD Rig Name / Type: Nabors Alaska 7ES / Arctic Land Suspension Date: 4/12/2012 Primary Target: Alpine Sands Permit to Drill: 212-187 Spud Date: 04/1/2013 Ground Elevation: 15’ AMSL Rig Release Date: RT Elevation: 46’ AMSL Nanushuk 3977’ MD / 3817’ TVD Torok 6213’ MD / 4955’ TVD Completion Status: Plugged and Abandoned Secondary Targets: Depths: Nuiqsut Sand 10070’MD/ 6952’TVD Classification: Appraisal TD Date: 04/12/2013 TD Formation: Nuiqsut Sand Days Testing: 0 Days Drilling: 12 2.2 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) TVD (ft) TD Formation Mud Weight (PPG) Dev. (oinc) Casing/ Liner MD (ft) TVD (ft) LOT (PPG) Conductor 113’ 113’ Permafrost 0 20” 86’ 86’ 16” 2135’ 2134’ Lower Schrader Bluff 10.0 0.63 13 3/8” 2120’ 2119’ 13.9 12 ¼” 2990’ 2987’ Tuluvak 10.5 7.12 N/A N/A N/A N/A 8 ½” 10546’ 7205’ Nuiqsut 10.8+ 57.08 N/A N/A N/A N/A 2.3 Well Synopsis Qugruk #3A was drilled as a highly deviated sidetrack appraisal well to evaluate the Nanushuk, Alpine, and Nuiqsut sands. Following TD it was plugged back and abandoned. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 5 3 GEOLOGICAL DATA 3.1 Lithostratigraphy All formations or markers provided by Repsol Geology. Well Prognosis vs Actual Pad Name Qugruk #3 Well Name Qugruk #3A Prognosis Actual Geologic Markers MD (ft) TVDSS (ft) MD (ft) TVDSS (ft) Base Permafrost 1114’ -1070’ 1080' -1034' Lower Schrader Bluff / MCU 2114’ -2070’ 2034' -1988' Upper Cretaceous / MFS 2263’ -2220’ 2250' -2204' Tuluvak/Seabee 2474’ -2430’ 2462' -2416' Kickoff Point 2708’ -2660’ Nanushuk 3894’ -3771’ 3977' -3771' Torok 6102’ -4969’ 6213' -4909' HRZ Shale 8899’ -6282’ 8875' -6270' Pebble Shale 9111’ -6382’ 9061' -6368' Kup C 9432’ -6532’ 9297' -6492' Kingak Shale / LCU 9444’ -6538’ 9322' -6506' Alpine 9726’ -6670’ 9647' -6678' Nuiqsut 10218’ -6901’ 10070' -6906' TD 10730’ -7178’ 10546' -7159' C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 6 3.2 Lithological Summary 3.2.1 Permafrost 113’ MD / -67’ TVDSS to 1080’ MD / -1034’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 357 1 72 49 0 7 Drilled during the Qugruk #3 pilot hole. Within the permafrost, surficial deposits and poorly consolidated to loose sands and gravels with occasional thinly bedded clays/claystones. Gas levels were negligible, and with no significant gas peaks to indicate the presence of hydrates. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 279’ 49 135 Representative sample descriptions are as follows: Conglomeratic Sandstone: moderate gray to dark gray, very coarse, unconsolidated, 25% quartz, 5% Clear chert, 70% lithic clasts, moderate poor to poorly sorted, sub angular to very angular, trace pyrite. Sand: Dominantly lithic clasts (80%), moderate gray to dark gray with less common dark gray, grayish brown, and olive black. 20% quartz clear to white and commonly translucent, coarse to moderate grains, moderate sorting, subangular to subrounded, trace pyrite and minor amounts of feldspars. Gravel: gray to black with occasional olive brown clasts, unconsolidated, 30% quartz, clear chert, very coarse, poor to very poor sorting, angular to subrounded, moderate to very low sphericity, occasional slight reaction with HCl, trace pyrite aggregates. Clay: light gray to pale yellowish brown with minor shades of medium dark gray. Hydrated and slightly expanded, adhesive, sectile, massive, earthy, nodular cuttings, common suspended sand grains in cuttings. 3.2.2 Base of Permafrost / Upper Schrader Bluff Formation 1080’ MD / -1034’ TVDSS to 2034’ MD / -1988’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 123 7 61 25 3 13 Drilled during the Qugruk #3 pilot hole The top of the Schrader Bluff lay within the permafrost zone. Below this the Upper Schrader Bluff Formation is dominantly claystone with consistent and varying low quantities of sands, sandstones and conglomeratic sandstones. Siltstone becomes common towards the bottom of the formation. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 7 Gas levels were generally negligible in this interval with a single gas peak near the top of the formation at 1218’. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 1218’ 352 59202 880 119 155 0 0 0 Representative sample descriptions are as follows: Claystone: medium light gray to medium dark gray with minor light olive gray and pale yellow brown, clumpy to mushy and very soft consistency, sectile tenacity, earthy fracture, nodular cuttings habit, very slight expansion and hydration, amorphous and massive. Sand: light gray to dark gray with minor greenish gray. Dominantly quartz with lesser amounts of lithic clasts and assorted minerals. Very fine to med coarse grains and fair sorting. Grains are rounded to sub rounded with moderate sphericity. Very slight reaction to no reaction with HCL. Siltstone: Light olive gray to medium dark gray. Crumbly to pulverulent tenacity, earthy to occasionally planar partings and fractures. Nodular to occasionally blocky cuttings habit. Silty to abrasive tenacity, massive structure to trace fine laminations. Gravels and conglomeratic: Medium dark gray to gray black and dependent upon a variety of crushed gravel lithic fragments. Gray black volcanics. Translucent, white, to gray cherts. Generally hard to very hard with fractured edges and rounded/frosted edges. Common conchoidal fracture. 3.2.3 Lower Schrader Bluff Formation 2034’ MD / -1988’ TVDSS to 2250’ MD / -2204’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 210 3 69 60 4 24 Drilled during the Qugruk #3 pilot hole The Lower Schrader Bluff Formation is dominantly claystone with lesser amounts of siltstone and a distinct white tuff that varies in quantity from trace to 40%. Gas levels were consistently low, averaging 10-20 units. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2221’ 60 10926 214 22 0 0 0 0 Representative sample descriptions are as follows: Claystone: White to light gray, very soft to slightly firm, punky consistency, varies from dominantly clay to silty clay. Amorphous and nodular cuttings that are very hydrated, cohesive and adhesive, occasional laminations. Scattered fine quartz grains and lithic clasts. Siltstone: light to dark grays and browns. Low to moderate induration, silty to clayey texture, crumbly to subplanar fracture, nodular to blocky cuttings habit. Occasional fine laminations. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 8 Tuff: White to light gray, crumbly tenacity, nodular cuttings habit, waxy to occasionally clayey texture, matte to smooth texture, occasional thin vague laminations. 3.2.3.1 Upper Cretaceous / MFS (Base member of the Lower Schrader Bluff Formation) 2250’ MD / -2204’ TVDSS to 2462’ MD / -2416’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 216 2 94 192 2 53 Drilled during the Qugruk #3 pilot hole The Upper Cretaceous Formation primarily consists of Siltstones and claystones with common tuffaceous claystone. Background Gas climbed to 30-50 units at the top of the formation and averaged 50 to 100 units in the lower portion. Two small gas peaks, one at 2362’ with no associated lithology and another just before the Tuluvak Formation. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2362’ 130 19033 1208 334 0 0 0 0 2442’ 192 23720 2691 1656 188 210 149 109 Representative sample descriptions are as follows: Tuffaceous Claystone: White with occasional gray hues. Punky to crumbly consistency, irregular to planar fracture, dull to waxy luster, finely interbedded with claystone, tuff, and siltstone. No reaction with HCL, No associated oil shows. Siltstone: light to dark grays and browns. Low to moderate induration, silty to clayey texture, crumbly to subplanar fracture, nodular to blocky cuttings habit. Occasional fine laminations. Claystone: Medium brown, very soft, grading into clay and siltstone. Clayey to silty texture, occasional cuttings are firm, less hydrated. 3.2.4 Tuluvak/Seabee Formation 2462’ MD / -2416’ TVDSS to 3977’ MD / -3771’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 582 1 106 944 1 76 Drilled into during the Qugruk #3 pilot hole down to kickoff point at 2708’. The Tuluvak Formation top is an over pressurized gas bearing siltstone with thin beds of sandstone and claystone with significant gas peaks. The beginning depths are sandstone which gives way to dominant C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 9 siltstone with claystone and thin sandstone beds at lower depths. There were trace to no oil indicators while drilling, but while working the area extensively while pulling out of the hole, abundant dark brown oil came through the flowline accompanied with high gas peaking at 1500 units and produced a gas cut of 10.9 to 8.5. Formation gas levels started with an entry peak of 886 units and varied between 50 and 400 units in the upper portion of the formation and tapered off to 40 – 60 units in the lower portion with occasional peaks of 150 units. Some may have been zone gas peaks from the sandstone but this could not be verified; however, nearly every trip in the hole for the duration of the well saw a trip gas peak attributed to this sandstone region at the top of the Tuluvak. The lower portion of the formation produced lower gas levels around 30-50 units. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 2466’ 886 45197 7380 6414 7810 8714 16524 6189 2472’ 945 41808 6982 6326 8169 9106 17275 6449 2495’ 443 25262 3395 3062 3317 3676 6993 2552 2656’ 282 31051 3003 2286 435 562 996 56 2678’ 269 30386 2672 1961 423 581 1004 53 2809’ 329 49803 5583 4744 890 1082 1972 157 Representative sample descriptions are as follows: SILTSTONE: upper Tulavek Siltstone was lighter than the lower: mostly medium light grey with irregular to sub-blocky fracturing, nodular cuttings habit, earthy luster, silty to sandy texture, with occasional dull yellow mineral fluorescence which no cut. Siltstone gradually became darker and more gritty and slightly granular with depth. Cuttings also became slightly laminated. All depths were non reactive to dilute acid. Siltstone below MD 3300’ was olive grey to medium dark grey and had trace to abundant inclusions of carbonaceous material less than .5 mm, sometimes exhibiting almost complete laminations. Cuttings were crumbly with occasional crunchy tenacity at lower depths with earthy fracturing and massive to nodular cuttings habit. Luster was earthy and texture ranged from smooth and clayey to silty and sometimes abrasive. Structure laminated to fissile, and cuttings were inert to acid except in the last 100’ of the Tulavek. Samples still included abundant amounts of carbonaceous material. Occasional cuttings included more or less sand grains causing grittier texture. Occasional cuttings had dull Yellow fluorescence with no cut. Claystone: cuttings were light grey to pale olive grey. Cuttings were very well hydrated which produced mushy, clumpy cuttings which impeded determination of cutting habit, fracturing, and structure. When visible, cuttings had nodular cuttings habit, and were thin bedded. Texture was clayey to silty with waxy to greasy luster. Occasional yellow to light green fluorescence with no cut was visible, and cuttings had rare very slight reaction to acid. Cuttings also included abundant possible foreign material due to hydration such as sand grains and carbonaceous material that was visible in the siltstone. Sandstone: initial cuttings at MD 2462’were very light gray. Grains are well sorted lower to upper fine, and subrounded and subangular to angular, and moderately spherical. Grains are dominantly quartz, exhibit no acid reaction, and had yellow to light green fluorescence, very weak petroleum odor, but produced no cut. At MD 2800’ cuttings were light grey to moderately brownish grey with occasional reddish hues. Grains were in the very fine range and very well sorted with some feldspar and lithic clasts. Grains were round with hi sphericity and generally soft to slightly friable. Sandstone was grain supported with slightly calcareous cement and commonly bedded with black laminations of carbonaceous material. Trace cuttings had moderate yellow fluorsesence with very slow faint to dullish brown yellow cut. Below MD 3400’, sandstone had finer grains and were greenish grey to medium light grey and speckled C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 10 with dark grains. Grains were larger with fine to medium and only moderately sorted. Cuttings were crumbly and increasingly silty. 3.2.5 Nanushuk Formation 3977’ MD / -3771’ TVDSS to 6213’ MD / -4909’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 307 20 137 965 7 159 The Nanushuk formation is characterized as a thick regressive sequence with a series of deltaic and fluvial deposits. Sands are fine grained with rich quartzite and lithic clasts (chert, limestone, shale). Origin of sand deposition is from the distributary channel deposits and mouth bar sediments. These deposits are very fine grained crevasse splay sands interbedded with silt and bay-fill shales. The top of the Nanushuk was sandstone which produced the first oil show with gas levels reaching 388 units. Subsequently, background gas levels maintained between 40 – 125 units with cuttings of mostly siltstone and claystone with one peak of 254 units down to MD 4494’ where show # 2 was produced with increased sandstone. The second show maintained to 4705’ and produced a peak gas of 947 units. Below the second show was dominantly siltstone with occasional interbedding of sandstones and claystones with gas steadily diminishing from around 380 units to 60 units at the beginning of the Torok. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 4029’ 388 46601 5541 3775 706 1569 2275 487 4273’ 258 29098 4121 2894 612 1311 1924 374 4546’ 553 54460 9512 6480 1534 3136 4670 1123 4665’ 947 93537 15417 10979 2607 5564 8171 2028 Representative sample descriptions are as follows: Sandstone: initial cuttings which produced the first show were medium yellow to light olive brown and lower very fine grains. Cuttings were very friable and included very fine carbonaceous material and accumulated oil on cuttings. lower sandstones were olive grey to dark greenish black, still were very fine grained, very well sorted, and grains were highly spherical to sub elongated and ranged from subrounded to well rounded and graded to subangular to subrounded in lower depths. Cuttings included varying amounts of carbonaceous material and after MD 4500’ (during the show #2) cuttings were occasionally heavily oil stained and degassing. Pixler Plot 3990' - 4030' 1 10 100 1000 10000 1 2 3 4 DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/ C2 C1/ C4 C1/ C5 C1/C3 Pixler Plot 4494' - 4705' 1 10 100 1000 10000 1 2 3 4 DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/ C2 C1/ C4 C1/C5 C1/ C3 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 11 Siltstone: during the range of beginning depths to MD 4500’ cuttings were medium grey to medium dark gray, firm, brittle, and with blocky to planar fracturing. Cuttings were flaky and platy and occasionally nodular with earthy to dull luster. Texture was silty to gritty, and contained carbonaceous material which increased to the interval of 4500’. After show #2 (4494’ – 4705’) siltstone cuttings had increased carbonaceous material and some trace degassing. Lower depths of approximately MD 5500’ to the Torok were thinly bedded with shales, sandstones and claystones with varying degrees of sand inclusions and argillaceous siltstone laminations. Claystone: cuttings were medium to light gray, and were very well hydrated which made their consistency clumpy and mushy and therefore mostly impossible to determine any fracture, cuttings habits, or structure. Cuttings often contained loose sand grains and carbonaceous material which were likely accumulated in the annulus. Texture was smooth and clayey except for the possibly foreign materials. Luster was earthy and occasionally dull and produced no reaction to acid. Some cuttings below MD 5000’ were less hydrated and had noticeably nodular cuttings habit. 3.2.6 Torok Formation 6213’ MD / -4909’ TVDSS to 8875’ MD / -6270’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 227 6 78 203 1 57 The Torok Formation consisted mainly of claystone and siltstone with varying amounts of interbedded sandstone and shales. No oil shows were produced in this zone. The upper section from MD 6213’ – 7470’ was mostly claystone with some sandstone and siltstone and trace amounts of calcareous tuff. Gas ranged between 50 – 100 units with no significant peaks. Representative sample descriptions for the range of MD 6213’ – 7470’ as follows: Claystone: medium light to medium grey and sometimes brownish grey and olive grey. Cuttings were mostly very well hydrated and difficult to impossible to determine cuttings habit, fracture and structure as they were mushy, clumpy amorphic globules. Luster was earthy to dull, and texture was smooth and clayey with varying degrees of grittiness depending on loose sand and carbonaceous material inclusions which were likely accumulated in the annulus. The lower portion of this interval yielded very dark green colors with more carbonaceous material inclusions. All depths were inert to acid. Siltstone: light grey to medium dark grey with some olive hues, moderately firm to slightly hard, and brittle to crumbly tenacity. Cuttings had blocky fracturing and nodular and tabular cuttings with occasional flaky cuttings habit. Luster was earthy to sparkling. Beginning depths in this range were occasionally slightly fissile that resembled shale. Lower depths became very sandy. Texture was silty to slightly gritty and increasingly abrasive with depth, and samples were occasionally thin-bedded with abundant carbonaceous material. Samples were inert to acid. At times, cuttings resembled the claystone, or were encapsulated within the hydrated claystone globules and were often difficult to distinguish. Sandstone (only approximately 50’ in this range): Sandstone: light to medium dark grey. Samples were grain supported with approximately 50% quartz grains being lower to upper fine and well sorted, subangular and moderately spherical. Cuttings were friable to firm with siliceous cement and contained trace Pyrite. No odor was detected, and samples were inert to acid. Sandstone became increasingly silty with depth and only lower depths contained trace very dull yellow mineral fluorescence. The ranges from MD 7470’ – 8875’ (top of HRZ shale) are mostly siltstone with interspersed sandstone, claystone and some shale beds. Gas in this range started at 180 units and dwindled to 40 units with some peaks of 200 units. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 12 Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 7495’ 180 24610 1644 1099 192 304 496 107 7695’ 203 27935 1797 963 171 264 435 136 Representative sample descriptions for the range of MD 7470’ - 8875’ as follows: Siltstone: Often difficult to distinguish from claystone and appears to be thinly interbedded with claystones and shales at depth. Distinguished from claystone by slightly harder induration and siltier texture. Softer and containing fewer visible structures than the Shale. Light olive grey to medium brown and brownish gray. Soft to moderately firm, crumbly to dense tenacity, platy to wedgelike cuttings, earthy to sparkling luster, silty to abrasive texture. At lower depths, samples became sandy and can either be described as a sandy siltstone, or an argillaceous sandstone. Sandstone: olive grey to brownish grey, sometimes light to medium grey. Grains are range from lower to upper very fine and are therefore very well sorted. Grains are moderately spherical and only in lower depths are very elongated, and range from subangular to very well rounded, but in some ranges either the grains were too small or cement too encapsulating to determine angularity or rounding. Grains are primarily quartz and in the upper depths also contain lithic clasts and abundant carbonaceous material less than .5mm and occasionally trace pyrite. Cuttings are slightly friable to very firm with siliceous cementing, and often very argillaceous. Occasionaly at this interval, less than 3% of the cuttings had orange to yellow mineral fluorescence and only rarely had a very weak trace cut from less than 1% of the grains contained in the sample. Occasional cuttings reacted slightly with dilute acid. Shale: dark grey to medium dark grey, moderately frm to very hard, dense to tough tenacity, blocky to planar and occasionally splintery fracturing, flaky to massive cuttings habit, earthy luster, clayey texture, mass and occasionally slightly fissile structure, inert to dilute acid. Cuttings were often lamated with micro carbonaceous material and thin-bedded with siltstone and occasionally contained pyrite. Claystone: similar to above description, except near the HRZ colors are more olive grey. 3.2.7 HRZ Shale 8875’ MD / -6270’ TVDSS to 9061’ MD / -6368’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 218 21 123 121 35 88 The HRZ Shale is a highly radioactive carbonaceous shale layer instantly recognizable by its gamma signature, and only slightly less so by its lithology as it appears as the first good shale after thousands of feet of Nanushuk and Torok siltstone / sandstone / claystone layers. Nearing the base of the Torok, the gas was steady between 45 and 55 units. Gas rose slowly and steadily to peak at 121 units near the top of the Pebble Shale. Gas Maximum Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 9050’ 121 17300 1474 888 115 234 50 48 Individual representative sample descriptions are as follows: C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 13 Carbonaceous Shale: Dark gray to grayish black, occasionally with lighter gray laminations. Cuttings are wedgelike to flaky and occasionally elongated, often appearing as small chips and wafers. It exhibits blocky to planar fracture, earthy and frequently sparkling luster, matte to slightly silty texture and high fissility. It has dense to tough tenacity. This carbonaceous shale interbeds and grades with minor stringers of lighter gray, slightly tougher regular shale. The shales are inert in acid. Occasional sandstone cuttings show moderate bright yellow fluorescence with no cut or odor. Calcareous Tuff and Pyrite appear as accessory minerals in this formation. 3.2.8 Pebble Shale 9061’ MD / -6368’ TVDSS to 9297’ MD / -6492’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 167 18 83 108 25 86 The Pebble Shale is an organic-rich marine mudstone underlying the HRZ. It is recognized primarily by its much lower gamma signature, but also has markedly less carbonaceous character and occasional isolated sand grains between the laminations. Carbonaceous character of the shale decreased with depth down to the boundary of the Kup C. Gas was remarkably consistent throughout this interval, with background gas only varying between about 75 and 100 units with no significant peaks or associated gas bearing layers. Gas was highest immediately below the HRZ, and tapered off very gradually with depth, before climbing much higher crossing the Kup C boundary below. Gas Maximum Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 9079’ 108 15092 1338 836 109 216 45 43 Individual representative sample descriptions are as follows: Shale: Light olive gray to olive gray to brownish gray, tough to brittle tenacity, planar to splintery and slightly flaky fracturing, platy to wedgelike and flaky cuttings habit, earthy to sparkling and occasionally waxy luster, smooth to silty texture, thin and commonly laminated structure, very slight pinpoint reaction with dilute acid, mostly from cracks and edges, no fluorescence. Carbonaceous Shale: Similar to the Shale but overall darker color. Slightly softer along laminations which are more common and organic rich. Trace scattered glauconite. Siltstone: Olive gray to medium gray, Moderate hard to soft induration, crumbly to crunchy tenacity, planar fracture, tabular to platy cuttings habit, earthy luster, silty texture, sometimes laminated, but often with no visible structure. Occasional organic debris aligned to bedding plane. Trace scattered glauconite, observed in the pilot hole, was not recovered from the Pebble Shale while drilling the sidetrack. A few scattered finely-ground Pyrite fragments were found in most samples. 3.2.9 Kuparuk C Unit C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 14 9297’ MD / -6492’ TVDSS to 9322’ MD / -6506’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 85.4 55.2 75.2 303 68 144 In this area, the Kup C is a thin bed of fine-grained dark gray to grayish black loosely consolidated sand with relatively high gas and oil-stained grains. The Pebble Shale above and the Kingak Shale below were not notable in this area for their oil sign and are easily distinguished by LWD and lithology. The base of the Kup C is also notable for the first appearance of significant connection gases, that being 1115 units above background. Gas background was 70 units at the base of the Pebble Shale before the Kup C and climbed to reach 398 units at the peak. Gas Peak Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 9328’ 398 40966 5936 5344 1286 2249 768 640 Individual representative sample description follows: Sandstone: Overall olive gray to dark gray, but is sometime quite a bit lighter in color, depending on the particular minerals making up the clasts. Cuttings are generally composed of at least 50% dirty translucent quartz grains and white to cream plagioclase, with the balance made up of the assorted darker lithics and organic material. Grains range from upper very fine to lower fine size, are well sorted and are subangular to subrounded in shape. Sandstone nodules tend to be firm to slightly hard and are friable. They are grain supported and held together by a siliceous cement. Some cuttings show trace pinpoint bubbles from individual grains. 3.2.10 Kingak Shale 9322’ MD / -6506’ TVDSS to 9647’ MD / -6678’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 195.4 15.9 93.7 178 21 141.0 The Kingak Shale/LCU interval is a bed of mostly clay shale between the Lower Cretaceous Unconformity and the Alpine Sandstone target zone. The Kingak is a pyrite-, glauconite-, and siderite-rich layer transitioning from the carbonaceous shale above through clay shale and becoming predominantly sideritic by the base. Background gas levels remained steady around 105 units throughout this formation, but were interrupted by several high connection gases, 1169 units above background at 9434’, 267 units at 9529’, and 236 units at 9625’. Pixler Plot 9297' - 9322' 1 10 100 1000 10000 1 2 3 4 DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/ C2 C1/ C4 C1/ C5 C1/C3 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 15 Gas Maximum Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 9539’ 178 17132 2254 2287 529 999 380 330 Individual representative sample descriptions are as follows: Shale: Medium gray to brownish black, sometimes with reddish hues, wedgelike to tabular cuttings habit, blocky to planar fracture, showing earthy to occasionally sparkling luster. Generally has a clay to matte texture, but can be occasionally silty-looking. Tough to somewhat hard tenacity. Occasionally it has laminations of darker more carbonaceous material and grades to carbonaceous shale. Carbonaceous Shale: Generally similar to the argillaceous shale described above, but darker, slightly softer, and often appearing as elongated thin splintery cuttings and as small chips. Tapers off with depth and probably sloughing from the HRZ carbonaceous shale layer above. Sideritic Shale: Nearly homogeneous, color from very dusky red to dusky yellowish brown, crunchy to brittle tenacity, planar to splintery fracture, flaky to bladed cuttings. It has an earthy to matte and often slightly sparkling luster, silty to somewhat gritty texture and occasionally has laminations of darker organic material. Sideritic shale increases with depth through the formation and appears to be associated with a rise in pyrite, siderite and glauconite and a decrease in carbonaceous shale. No significant oil indicators were present in this formation. 3.2.11 Alpine Sand 9647’ MD / -6678’ TVDSS to 10070’ MD / -6906’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 218.9 12 132.2 481 21 178.7 The Alpine Sand is the primary target of investigation. It is characterized as an extensively burrowed fine-grained sideritic sandstone layer with relatively abundant glauconite and pyrite. Sands appear fairly abruptly at the top accompanied by a large drop in gamma and a flood of glauconite and pyrite. As depth increases toward the Nuiqsut the sands grade silty and the gamma readings progressively increase. Gasses at the top of the Alpine started at approximately 100 units and quickly and gradually peaked at 482 units during the 4th show by MD 9712’ as the sandstone content increased. After this, siltstone increased along with gamma and gas tapered to approximately 75 to 175 units for the remained of the Alpine and tapered lower toward the Nuiqsut. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 9712’ 482 46074 6176 6025 1557 2656 4214 957 Pixler Plot 9647' - 9769' 1 10 100 1000 10000 1 2 3 4 DRY GAS GAS CONDENSATE OI L NON PRODUCTIVE C1/ C2 C1/ C4 C1/C5 C1/ C3 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 16 Individual representative sample descriptions are as follows: Sandstone: greenish black to olive grey with occasional brownish grey. Grains are lower very fine to upper fine and therefore moderately well sorted. Grains are subangular to subrounded and ranged from very highly spherical to very elongated. Sandstone was moderately friable to slightly firm and grain supported with siliceous cementing, and carried abundant glauconite and pyrite. Cuttings were occasionally slightly calcareous, and some upper samples had 5-40% pale yellow mineral fluorescence with some weak oil staining and some cut: see show report #4. Siltstone was medium to light grey, slightly to very firm hardness, crumbly tenacity with blocky to planar fracturing, and platy to tabular cuttings habit. Luster was earthy and slightly sparkling with silty texture and very fissile structure laminated with carbonaceous material and inclusions of loose sand grains which were non calcareous. Occasionally cuttings were interspersed with shales and claystones which also carried abundant carbonaceous material. 3.2.12 Nuiqsut Sand to TD 10070’ MD / -6906’ TVDSS to TD @ 10546’ MD / -7159’ TVDSS Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 232.6 100 127.4 240 20 131 The Nuiqsut Sand is a secondary target of this investigation. The interval begins with siltstone and claystone with imbedded very fine to medium grained unconsolidated sand containing traces of more well lithified sandstone. The interval then fines with depth to a more sandy siltstone and claystone. Background gas levels held consistently between about 105 and 150 throughout the formation. Highest gas was 238 units at MD 10201’. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 10201’ 238 23985 2314 2896 884 1661 2544 664 Individual representative sample descriptions are as follows: Siltstone: olive gray to brownish gray and occasionally light gray. Cuttings were mostly well hydrated in the beginning depths which masked any visible fracture, tenacity, cuttings habit and structure with amorphous gelatinous clumps. With depth, cuttings behavior was slightly more visible: brittle to dense tenacity, massive to platy cuttings habit, earthy luster, clayey to gritty texture, occasionally fissile structure when visible, and laminated with carbonaceous material and sandstone. Cuttings were had trace reaction to dilute acid. Siltstone bears trace dull brownish yellow sample fluorescence and is associated with scattered mineral fluorescence. Claystone: Light olive gray to brownish gray, very well hydrated causing amorphous clumpy consistency with no visible fracture, cuttings habit or structure, earthy luster, clayey to granular texture and including abundant loose quartz sand grains, abundant siltstone and shale fragments, trace reaction to dilute acid. Shale: dark gray to grayish black, very to slightly hard, dense and brittle tenacity, splintery to blocky fracture, platy to irregular cuttings habit, earthy and sparkling luster with occasional greasy luster, clayey texture, laminated to fissile structure. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qu g r u k # 3 A 17 3. 3 H y d r o c a r b o n S h o w s 3. 3 . 1 S u m m a r y SA M P L E L I T H O L O G Y DR I L L I N G M U D ST A I N SA M P L E F L U O R CU T F L U O R RE S C U T F L U O R VI S C U T AVG VERBAL SH O W DE P T H LI T H O L O G Y % OD O R PO P S % CO L O R IN T E N S I T Y % CO L O R IN T E N S I T Y SP E E D CO L O R IN T E N S I T Y CO L O R RA T I N G RATING 1 3 9 9 0 ’ – 4 0 3 0 ’ S S T 4 0 1 0 2 0 3 1 2 5 2 3 2 1 2 2 1 . 7 Fair 2 4 4 9 4 ’ – 4 7 0 5 ’ S S T 4 0 2 0 4 0 2 1 8 5 2 1 1 1 2 1 1 . 3 Fair 3 9 2 9 7 ’ – 9 3 2 2 ’ S S T 5 0 0 0 1 0 1 2 1 0 2 2 2 1 2 0 1 . 2 Fair 4 9 6 4 7 ’ – 9 7 6 9 ’ S S T 6 0 0 0 4 0 1 4 8 5 1 1 1 1 1 2 1 . 4 Fair Comment [E1]: Use Oil Show Summary Table we use once approved by Respsol CO N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 18 3.3.2 Hydrocarbon Show Reports C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 19 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 20 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 21 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qu g r u k # 3 A 22 3. 3 . 3 H y d r o c a r b o n S h o w P a r a m e t e r s I) D R I L L I N G M U D II I ) S A M P L E F L U O R E S C E N C E IV ) C U T S A M P L E F L U O R E S C E N C E V) R E S I D U A L C U T F L U O R E S C E N C E A. F r e e o i l i n m u d ( f l u o r p o p s ) A . C o l o r A. C o l o r A. C o l o r 0. N o n e 0. N o n e 0. N o n e 0. N o n e 1. 1 m m ( p n p t ) s c a t t e r e d , f e w i n n o . 1 . N o n e – v . p a le y e l ( p y ) 1 . V . p a l e y e l ( v p y ) , p a l e o r g ( p o ) 1 . V. p a l e y e l ( v p y ) , p a l e o r g ( p o ) 2. 2 m m s c a t t e r e d , f e w w / o c c 2 m m 2 . B r o w n ( b ) , o r g - br n ( o b ) , b r n - g o l d ( b g ) 2 . L i g h t y e l ( l y ) , y e l - o r g (y o ) 2 . L i g h t y e l ( l y ) , y e l - o r g ( y o ) 3. C o m m o n t o a b u n d a n t 1 - 2 m m 3 . O r g ( o ) , g o l d ( g ) , y el - o r n g ( y o ) 3 . B r t y e l ( b y ) , b r t y e l - o r g ( b y o ) 3 . Br t y e l ( b y ) , b r t y e l - o r g ( b y o ) 4. A b u n d a n t 2 m m a n d l a r g e r 4 . W h t - y e l ( w y ) , g r n - y e l ( g y ) , b l u - w h t ( b l w ) 4 . G r n y e l ( g y ) , v . b r t y e l ( v by ) 4 . G r n y e l ( g y ) , v . b r t y e l ( v b y ) B. O d o r B. I n t e n s i t y B . I n t e n s i t y B . I n t e n s i t y 0. N o n e t o s l i g h t 0 . N o n e - v e r y w e a k 0 . N o n e - v e r y w e a k 0 . N o n e - v e r y w e a k 1. V e r y s l i g h t 1 . V e r y w e a k ( t r a n s p a r e n t ) 1 . V e r y w ea k ( t r a n s p a r e n t ) 1 . V e r y w e a k ( t r a n s p a r e n t ) 2. S l i g h t 2. M o d e r a t e ( t r a n s l u c e n t 2 . M o d e r a t e ( t r a n s l u c e n t 2 . M o d e r a t e ( t r a n s l u c e n t 3. M o d e r a t e 3 . M o d e r a t e - s t r o n g 3 . M o d e r a t e - s t r o ng 3 . M o d e r a t e - s t r o n g 4. S t r o n g 4 . S t r o n g ( o p a q u e ) 4 . S t r o n g ( o p a q u e ) 4 . St r o n g ( o p a q u e ) II ) V I S I B L E S T A I N I N G O N C U T T I N G S C . P e r c e n t D i s t r i b ut i o n C . S p e e d VI ) V I S I B L E C U T 0. N o n e ( 0 % ) 0 . N o n e A . D i s t r i b u t i o n , p e r c e n t 1. T r a c e ( 0 - 1 0 % ) 1 . V . S l o w ( o c c s t r e a m e r s ) A) C o l o r 0. N o n e 2. S p o t t y ( 1 0 - 4 0 % ) 2 . S l o w ( f r e q u e n t s t r e a m e r s ) 0 . No n e - c l e a r 1. T r a c e ( 0 - 1 0 % ) 3 . S c a t t e r e d - p a t c h y ( 4 0 - 8 5 % ) 3 . Fa s t 1. P a l e s t r a w ( p s ) 2. S p o t t y ( 1 0 - 4 0 % ) 4 . E v e n , u n i f o r m ( 8 5 - 1 0 0 % 4 . I n s ta n t 2 . S t r a w ( s ) 3. S c a t t e r e d - p a t c h y ( 4 0 - 8 5 % ) 3. A m b e r ( a ) 4. E v e n , u n i f o r m ( 8 5 - 1 0 0 % ) 4. D r k a m b e r t o b r n ( d a ) VI I ) S H O W R A T I N G 0. 0 t o 1 . 0 = P o o r 1 . 1 t o 2 . 0 = F a i r 2 . 1 t o 3 . 0 = G oo d 3 . 1 t o 4 . 0 = E x c e l l e n t CO N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 23 3.4 Gas Peaks 3.4.1 Connection Gases 1 unit = 0.05% Methane Equivalent Depth Gas over BGG (MD/TVD feet) (units) 16” Hole Section N/A N/A 12 ¼” Hole Section 2472’ 180 8 ½“ Hole Section 2770’ 515 9050’ 40 9147’ 47 9338’ 1115 9434’ 1169 9529’ 267 9625’ 236 9720’ 244 9817’ 187 9916’ 644 10007’ 519 10103’ 1068 10195’ 576 10291’ 603 10385’ 611 10481’ 199 3.4.2 Trip (Wiper) Gases 1 unit = 0.05% Methane Equivalent Depth Trip to Gas Downtime (feet) (feet) (units) (hours) 16” Hole Section 375’ 0’ 10 9.6 1175’ 345’ 9 4.5 2135’ 0’ 30 240 12 ¼” Hole Section 2691’ 0’ 70 120 2990’ 0’ 277 24 6117’ 2953’ 61 11.5 8015’ 0’ 1227 50.3 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 24 3.4.3 Drilled Gas Peaks 1 unit = 0.05% Methane Equivalent Maximum peak composition Depth (MD) Total Gas Background Gas C1 C2 C3 iC4 nC4 iC5 nC5 ft Formation Units Units ppm ppm ppm ppm ppm ppm ppm 16” Hole Section 279' Permafrost 49 2 9671 3 0 0 0 0 0 1218' Schrader Bluff 352 24 59202 880 119 155 0 0 0 12 ¼“ Hole Section 2221' MCU 60 21 10926 214 22 0 0 0 0 2362' MFS 130 26 19033 1208 334 0 0 0 0 2442' MFS 192 28 23720 2691 1656 188 210 149 109 2466' Tuluvak 886 446 45196 7379 6413 7810 8713 6188 4514 2495' Tuluvak 443 148 25360 3403 3069 3318 3677 2514 1872 2656' Tuluvak 282 250 31051 3003 2286 435 562 56 72 2678' Tuluvak 270 65 30386 2672 1961 423 581 53 52 8 ½“ Hole Section 4678' Nanushuk 966 400 95354 15614 11176 2654 5692 2078 2271 7694' Torok 203 79 27935 1797 963 171 264 136 142 9050' HRZ Shale 121 93 17300 1474 888 115 234 50 48 9079' Pebble Shale 108 102 15092 1338 836 109 216 45 43 9328' Kup C 398 70 40966 5936 5344 1286 2249 768 640 9539' Kingak Shale 178 80 17132 2254 2287 529 999 380 330 9718' Alpine 482 281 46137 6169 6018 1554 2652 956 827 10200’ Nuiqsut 240 119 24221 2330 2918 891 1672 668 714 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 25 3.5 Sampling Program / Sample Dispatch 3.5.1 Sample Dispatch Washed and dried samples are contained within sample envelopes, and wet samples are in plastic Whirl- pak® bags. Gas samples are contained in IsoTubes®, and headspace samples were put in IsoJars™ . All were packaged and affixed with address labels, at which point they were turned over to a Repsol representative for delivery. Set Type / Purpose Frequency Interval Dispatched to 1 Washed, screened, rinsed and dried reference samples Unwashed samples in Whirl-pak® bags Set owner: Repsol 30’ 60’ 30’ 10’ 20’ 30’ 10’ 30’ 26’ 30’ 60’ 30’ 10’ 30’ 10’ 30’ 26’ 2690’ – 8510’ 8510’ – 8570’ 8570’ – 9650’ 9650’ – 9750’ 9750’ – 9770’ 9770’ – 10070’ 10070’ – 10220’ 10220’ – 10520’ 10520’ – 10546’ 2690’ – 2780’ 2780’ – 2840’ 2840’ – 9650’ 9650’ – 9800’ 9800’ – 10070’ 10070’ – 10220’ 10220’ – 10520’ 10520’ – 10546’ FUGRO Attn: Allen Rother Fugro Data Solutions 3311 South US Hwy, 77 Schulenburg, Texas 78956 Office: (979) 562-2777 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 26 Set Type / Purpose Frequency Interval Dispatched to 3 Washed, screened, rinsed and dried reference samples Set owner: AOGCC 30’ 60’ 30’ 10’ 20’ 30’ 10’ 30’ 26’ 2690’ – 8510’ 8510’ – 8570’ 8570’ – 9650’ 9650’ – 9750’ 9750’ – 9770’ 9770’ – 10070’ 10070’ – 10220’ 10220’ – 10520’ 10520’ – 10546’ Alaska Oil and Gas Conservation Commission Attention: Howard Okland, Petroleum Geologist Assistant 333West 7th Avenue, Suite 100 Anchorage, Alaska 99501 4 Unwashed samples in IsoJars® Set owner: Repsol 90’ 180’ 90’ 2690’ – 8450’ 8450’ – 8630’ 8630’ – 10520’ FUGRO Attn: Allen Rother Fugro Data Solutions 3311 South US Hwy, 77 Schulenburg, Texas 78956 Office: (979) 562-2777 5 Gas samples in IsoTubes® Set owner: Repsol 90’ Selected Gas Peaks 30’ zones of interest 2765’ – 10546’ FUGRO Attn: Allen Rother Fugro Data Solutions 3311 South US Hwy, 77 Schulenburg, Texas 78956 Office: (9+79) 562-2777 6 Mud Samples Set owner: Repsol Beginning and end of hole section and upon change of mud properties or phase of drilling 2120’ 3050’ 10546’ FUGRO Attn: Allen Rother Fugro Data Solutions 3311 South US Hwy, 77 Schulenburg, Texas 78956 Office: (979) 562-2777 Sample frequency was locally altered according to drill rate constraints and zones of interest. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 27 3.5.2 Isotube Samples Box 1 Hole Section Sample Depth MD/TVD Total Gas (units) Methane (ppm) Ethane (ppm) Propane (ppm) iButane (ppm) nButane (ppm) iPentane (ppm) nPentane (ppm) 12 ¼" 1 2765'/2763' 653 105436 11268 9351 1657 2018 355 293 12 ¼" 2 2789'/2787' 365 14875 1751 1515 286 308 75 51 12 ¼" 3 2870'/2868' 98 11632 869 543 102 145 52 32 12 ¼" 4 2960'/2957' 134 11172 845 620 116 181 57 56 12 ¼" 5 2777'/2775' 2176 371808 41215 34770 5964 7101 1343 1104 8 ½" 6 3050'/3046' 57 8330 564 508 115 156 52 50 8 ½" 7 3140'/3133' 37 5482 328 291 69 98 54 40 8 ½" 8 3230'/3218' 38 5512 314 280 71 104 57 36 8 ½" 9 3345'/3323' 66 9848 586 399 116 170 101 74 8 ½" 10 3410'/3380' 52 7197 551 370 96 168 58 79 8 ½" 11 3513'/3468' 13 1874 125 94 24 41 19 25 8 ½" 12 3590'/3531' 2 289 17 14 4 6 3 4 8 ½" 13 3680'/3603' 27 3855 238 186 34 70 10 33 8 ½" 14 3770'/3672' 43 8011 494 363 74 163 52 59 8 ½" 15 3860'/3737' 43 6142 475 335 62 137 22 35 8 ½" 16 3950'/3799' 56 7874 669 431 73 179 44 50 8 ½" 17 4029'/3851' 392 46601 5541 3775 706 1569 487 528 8 ½" 18 4064'/3872' 106 13168 1397 997 174 419 121 97 8 ½" 19 4172'/3936' 127 14650 1659 1219 232 541 155 158 8 ½" 20 4221'/3963' 130 14717 1945 1407 303 656 189 183 8 ½" 21 4310'/4010' 96 11465 1355 987 184 454 138 144 8 ½" 22 4400'/4055' 64 6213 609 499 123 299 75 111 8 ½" 23 4495'/4102' 42 4807 545 396 107 218 79 77 8 ½" 24 4546'/4127' 546 53563 9368 6375 1509 3082 1103 1144 8 ½" 25 4580'/4144' 448 43780 7519 5188 1229 2546 916 965 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 28 Box 2 Hole Section Sample Depth MD/TVD Total Gas (units) Methane (ppm) Ethane (ppm) Propane (ppm) iButane (ppm) nButane (ppm) iPentane (ppm) nPentane (ppm) 8 ½" 1 4697'/4202' 571 48817 7914 5709 1356 2930 1073 1180 8 ½" 2 4651'/4179' 870 85899 14271 10101 2397 5088 1850 2001 8 ½" 3 4720'/4213' 412 40775 6536 4756 1130 2461 904 1002 8 ½" 4 4670'/4189' 948 93551 15365 10972 2605 5576 2034 2218 8 ½" 5 4772'/4239' 408 40373 6296 4681 1114 2471 914 1031 8 ½" 6 4852'/4279' 390 38646 5773 4439 1058 2414 902 1042 8 ½" 7 4940'/4322' 181 93551 15365 10972 2605 5576 2034 2218 8 ½" 8 5030'/4367' 72 40373 6296 4681 1114 2471 914 1031 8 ½" 9 5120'/4411' 100 38646 5773 4439 1058 2414 902 1042 8 ½" 10 5264'/4483' 130 9966 1155 802 222 482 188 219 8 ½" 11 5300'/4500' 152 11560 1408 672 301 569 225 229 8 ½" 12 5390'/4545' 164 11713 1451 1029 232 510 216 226 8 ½" 13 5480'/4589' 144 10806 1228 847 201 459 171 200 8 ½" 14 5570'/4634' 75 7665 689 495 128 309 145 174 8 ½" 15 5660'/4678' 67 7133 604 405 110 262 129 164 8 ½" 16 5750'/4723' 94 9205 839 509 113 292 141 154 8 ½" 17 5840'/4767' 77 7742 655 438 103 248 158 157 8 ½" 18 5930'/4812' 126 11373 1041 724 115 274 110 132 8 ½" 19 6020'/4856' 102 10082 870 534 109 263 120 130 8 ½" 20 6050'/4871' 73 7932 669 403 88 204 85 102 8 ½" 21 6110'/4901' 74 9544 792 487 106 240 123 135 8 ½" 22 6213'/4952' 52 6276 521 417 67 157 78 98 8 ½" 23 6290'/4990' 72 8349 652 398 99 159 58 67 8 ½" 24 6380'/5034' 90 8995 777 502 90 181 65 95 8 ½" 25 6470'/5078' 62 8100 662 443 82 162 84 93 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 29 Box 3 Hole Section Sample Depth MD/TVD Total Gas (units) Methane (ppm) Ethane (ppm) Propane (ppm) iButane (ppm) nButane (ppm) iPentane (ppm) nPentane (ppm) 8 ½" 1 6560'/5123' 66 8648 655 445 60 132 51 86 8 ½" 2 6650'/5167' 37 6993 547 302 41 85 36 39 8 ½" 3 6740'/5211' 25 3576 270 175 24 47 12 14 8 ½" 4 6830'/5255' 39 6755 501 311 31 88 29 36 8 ½" 5 6920'/5299' 57 8177 589 370 59 132 8 14 8 ½" 6 7010'/5343' 57 7694 565 358 51 95 14 41 8 ½" 7 7112'/5393' 33 4168 292 192 33 67 50 17 8 ½" 8 7209'/5441' 62 7747 538 337 56 114 32 40 8 ½" 9 7280'/5478' 82 9461 609 353 55 93 23 10 8 ½" 10 7370'/5525' 51 7103 472 279 42 111 19 19 8 ½" 11 7460'/5572' 62 7961 506 315 59 84 40 22 8 ½" 12 7550'/5619' 98 10369 770 580 94 173 32 29 8 ½" 13 7640'/5666' 92 10403 758 423 78 120 38 68 8 ½" 14 7730'/5714' 80 9985 572 294 50 77 59 40 8 ½" 15 7820'/5761' 68 9331 612 322 70 100 23 38 8 ½" 16 7911'/5809' 62 9764 655 349 58 112 30 22 8 ½" 17 8018'/5866' 101 15516 1263 905 149 219 76 61 8 ½" 18 8099'/5909' 74 9652 887 770 149 203 62 65 8 ½" 19 8180'/5951' 91 12279 1184 936 172 236 89 70 8 ½" 20 8270'/5998' 26 3814 238 185 34 60 16 29 8 ½" 21 8360'/6046' 55 7811 556 433 98 163 45 56 8 ½" 22 8450'/6093' 31 4427 243 205 61 107 31 37 8 ½" 23 8570'/6156' 21 3683 219 121 47 73 17 47 8 ½" 24 8630'/6188' 23 4601 286 183 27 64 37 26 8 ½" 25 8836'/6296' 34 7668 514 280 39 87 22 31 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 30 Box 4 Hole Section Sample Depth MD/TVD Total Gas (units) Methane (ppm) Ethane (ppm) Propane (ppm) iButane (ppm) nButane (ppm) iPentane (ppm) nPentane (ppm) 8 ½" 1 8951'/6357' 96 13094 1128 555 104 168 43 38 8 ½" 2 8996'/6381' 60 9808 769 427 53 118 28 26 8 ½" 3 9080'/6425' 62 9729 866 542 72 140 29 29 8 ½" 4 9170'/6472' 69 9911 937 646 94 171 49 44 8 ½" 5 9260'/6520' 53 8418 801 604 113 169 51 42 8 ½" 6 9329'/6556' 375 18921 2869 2619 640 1128 388 323 8 ½" 7 9351'/6568' 200 13765 1549 1382 227 479 178 164 8 ½" 8 9344'/6564' 1100 26224 5072 4681 1563 2489 977 877 8 ½" 9 9440'/6615' 195 14604 1765 1578 331 592 196 166 8 ½" 10 9530'/6662' 240 15072 2072 2110 494 924 353 304 8 ½" 11 9620'/6710' 43 6861 523 503 95 210 71 77 8 ½" 12 9650'/6726' 90 10145 974 985 203 401 147 133 8 ½" 13 9680'/6742' 214 15809 1892 1820 425 744 304 257 8 ½" 14 9710'/6758' 455 20479 2912 2835 754 1267 458 393 8 ½" 15 9740'/6774' 500 16386 2015 1952 488 875 284 262 8 ½" 16 9770'/6790' 259 28588 3348 3282 787 1397 503 441 8 ½" 17 9800'/6806' 145 13084 1374 1353 302 558 200 178 8 ½" 18 9890'/6854' 42 7849 587 668 128 274 107 83 8 ½" 19 9916'/6868' 750 23213 4181 3818 1219 2084 932 943 8 ½" 20 9616'/6708' 1100 24572 4612 4351 1514 2566 1166 1166 8 ½" 21 9950'/6886' 105 12564 1345 1400 335 682 261 239 8 ½" 22 9980'/6902' 120 14126 1802 1810 469 940 358 346 8 ½" 23 10070'/6950' 140 12009 1493 2077 591 1164 452 498 8 ½" 24 10100'/6966' 124 7255 798 1213 404 781 306 315 8 ½" 25 10103'/6967' 1150 23785 4516 4246 1534 2727 1156 1037 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 31 Box 5 Hole Section Sample Depth MD/TVD Total Gas (units) Methane (ppm) Ethane (ppm) Propane (ppm) iButane (ppm) nButane (ppm) iPentane (ppm) nPentane (ppm) 8 ½" 1 10135'/6984' 185 18165 2028 2347 696 1294 523 567 8 ½" 2 10160'/6998' 128 8923 765 1012 325 641 273 293 8 ½" 3 10200'/7019' 317 16011 2205 2159 573 1067 442 457 8 ½" 4 10222'/7031' 140 9853 920 1160 357 660 260 280 8 ½" 5 10290'/7067' 144 9320 1053 1279 373 761 322 332 8 ½" 6 10340'/7094' 125 8982 797 944 280 538 253 266 8 ½" 7 10460'/7159' 128 9350 854 1136 341 691 298 291 8 ½" 8 10520'/7191' 97 8216 717 950 289 562 279 248 8 ½" 9 10546'/7206' 84 7720 600 785 241 469 244 206 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 32 4 PRESSURE / FORMATION STRENGTH DATA Based on a regional pressure gradient, the pore pressure gradient (PPG) is estimated to be 0.455 psi/ft, or 8.8 PPG. 4.1 Pore Pressure Gradient Evaluation Interval Tops Pore Pressure (EMW) Formation Interval Primary Lithology (%) Secondary Lithology (%) MD (ft) TVD (ft) TVDSS (ft) Min (PPG) Max (PPG) Trend Trend Indicators Permafrost 80% SD 20% CLST 113’ 113’ -67’ 9.45 10.26 INCREASE BG, MW, ECD Base Permafrost / Upper 90% SLTST 10% CLST 1080’ 1080’ -1034’ 9.69 10.30 SLIGHT DECREASE BG, MW, ECD Lower Schrader Bluff / MCU 90% SLTST 10% CLST 2034’ 2034’ -1988’ 9.68 10.09 EVEN BG, MW, ECD Upper Cretaceous / MFS 90% SLTST 10% CLST 2250’ 2250’ -2204’ 9.73 10.08 EVEN BG, MW, ECD Tuluvak 60% SLTST 40% CLST 2462’ 2462’ -2416’ 9.82 12.10 INCREASE BG, MW, ECD Nanushuk 100% CLST 3977’ 3817’ -3771’ 10.63 12.17 DECREASE BG, MW, ECD Torok 60% CLST 40% SD/SLTST 6213’ 4955’ -4909’ 10.63 12.33 SLIGHT INCREASE BG, MW, ECD HRZ Shale 100% CSH 8875’ 6316’ -6270’ 11.47 12.41 EVEN BG, MW, ECD Pebble Shale 60% CSH 40% CLST 9061’ 6414’ -6368’ 11.43 12.32 SLIGHT DECREASE BG, MW, ECD Kup C 100% SD 9297’ 6538’ -6492’ 11.43 11.64 EVEN BG, MW, ECD Kingak Shale / LCU 100% CLST 9322’ 6552’ -6506’ 11.21 12.53 SLIGHT INCREASE BG, MW, ECD Alpine 100% SST 9647’ 6724’ -6678’ 11.44 12.22 EVEN BG, MW, ECD Nuiqsut 60% CLST 40% SD 10070’ 6952’ -6906’ 11.48 12.59 INCREASE BG, MW, ECD TD 100% CLST 10546’ 7205’ -7159’ NOTE: Sd = Sand, Clst = Claystone/Clay, Sltst = Siltstone, Sst = Sandstone, Sh = Shale, CSh = Carbonaceous Shale, Cs = Conglomeratic Sand, Cg = Conglomerate C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 33 4.2 Quantitative Methods The primary indicators used for PPG evaluation were gas trends relative to mud weight (MW) and effective circulating density (ECD), including increases in background gas (BG), appearance and trends of connection gas (CG), magnitudes of trip gas (TG) and wiper gas (WG). As a reference, PPG is calculated initially with a formula provided by Canrig, and then modified using the indicators described above, and DXC and resistivity (RES) data. The formula uses DX, ECD, and BG as measured by total ditch gas: PPG = ECD – (0.6-((.001*TLGSU)+(0.05*DX))) The formula has certain limitations, such that it does not allow for a PPG more than 1 PPG less than the ECD, and TLGSU must be differentiated from show gas and gas carried from over pressure zones, and is dependent on reliable DX data. However, the formula proved useful in helping formulate a PPG range, when estimating trends, as with DXC data, with data points in shale intervals. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 34 5 DRILLING DATA 5.1 Daily Activity Summary 4/1/2013 Trip out of hole from pumping cement plug in Qugruk #3 pilot hole, circulating out contaminated mud. Trip in and tag cement at 3501’. Set cement plugs at 3166’ and 2255’. Pull out of hole and prepare for Qugruk #3A side track. 4/2/3013 Test BOP, Pick up BHA for side track. Trip in hole to 2098’, Trip out to 1840’, service top drive. Trip in hole to 2096’ 4/3/2013 Trip in hole from 2096' to 2661' Washing and Reaming. Slide drilling and directional work to 2855’ Midnight Depth. 4/4/2013 Drill to 2990’, Circulate bottoms up and condition hole. Trip out of hole. Lay down side track BHA. Clean and clear rig floor, service rig. Pick up BHA with rotary steerable, LWD, and 8.5” bit. Trip in hole. Tight spot at 2677’, wash and ream to 2990’. Commence drilling. 4/5/2013 Ream and wash to kick off point at 2708' Ream and was to 2990', Commence Rotary Drilling, 4415’ at Midnight. poor-Moderate Oil shows seen from 3990-4260. 4/6/2013 Drill From 4697’ to 6117’. Pull out of Hole for Wiper Trip. 4/7/2013 Drill form 6967' to 8015'. Trip out for BOP test. 4/8/2013 Trip in till 22:00. Begin rotary drilling at MD 8015' at 22:00 to MD 8290' 4/9/2013 Tripped out, Lay down BHA, Test BOP and Rig Alarms. 4/10/2013 Drilling from 8290' to 8566'. Waiting on Rigwatch to reboot. Continue rotary drilling to 8700'. 4/11/2013 Rotary drilling from 8,700' to 9,361'. 19:00 to 21:30, downtime to troubleshoot power generator. Continue drilling ahead to 10,200' 4/12/2013 Rotary drilling from 10,200’ to 10,546’. Circulate & condition. Backream to 9,210’. 4/13/2013 Back reaming from 9,210’ to 5,448’. 4/14/2013 Back reaming from 5,448’ to 4,977’. POOH from 4,977’ to 3,866’, encountered tight spot and continued back reaming to 3,431’ & pump out to 3,167’. POOH to 2,120’. Circulate & condition. Blow down top drive. Gas bubbles observed in mud, but no gain. Pump out to 979’. Circulate & condition. Observe well bubbling and flowing. Gas cut to 9.8 PPG. Shut in well. Continued to observe slow and steady gain. Circulate through choke & gas buster. Strip in from 979’ to 2,109’. Continue to circulate through choke. 4/15/2013 Continue to circulate through choke. Monitor well, gaining ~1BPM. Strip in hole from 2,109’ to 2,710’. Circulated through choke, lost returns = 65bbl. Monitor well, still flowing. Circulate through choke. Gaining ~1.2BPM. Circulate through choke. Monitor well & blow down top drive. Circulate through choke. Work down to 2,734’. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 35 4/16/2013 Circulated at MD 2741' and increased mud weight from 10.9 to 11.7 at time of report. Occasionally checking for flow. 4/17/2013 Trip in hole slowly T/2707' 14.5bbl loss on TIH. Rotate down Tq=1k Rot Wt=105k up weight 108 down weight=95 circulate and condition break circulate slowly on up stroke. Stage up T/3bpm=270psi. Seeing losses @ 3bpm, slow down T/ 2 Bpm=180psi. Still losing, slow down T/ 1 Bpm=80psi, still losing mud. Shut down pumps. 48bbls lost total during circulation. Monitor well. Well static. Monitor on trip tank. Circulate across top Of hole. Increased mud weight to 12.5. 4/18/2013 Trip out of hole from 1922’ to 330. Up weight 45k. Pump out 1 bpm, pull 30 fpm. 25 bbls lost on trip. Trip out of hole and monitor trip tank. 4/19/2013 Circulate and condition and finish filling pipe. M/u Xo t/5” drill pipe. Run in 1 stand drill pipe to 2090’. Increase to 50 down weight 50 stage pumps up to 3 bpm=120psi. Rotate 20rpm rotary. Wt=50 tq=500-600ft/lbs. Circulate until 12.2 pph in/12/1+ppg out. Working as directed by operator. Monitor well on trip tank. 4/20/2013 Circulate and condition. Cutting mud weight to 11.8 in and out. 2.5bpm=180psi 4/21/2013 Well control: continue circulating through choke. Fcp 3bpmDp=210psi csg=30psi gas=594units. Mwt in=12.0 Mwt=11.2+ shut down casing=30psi. Trip in hole bleed down casing. Open annular. TIH T/3590'. 9bbl gain. Shut in. Working as directed by operator shut in. Monitor Sicp build t/20psi. Circulate and condition through choke. Icp 3bpm dp=210psi csg=30psi fcp 3.3bpm dp=240psi Csg=40psi mwt in 12.0 out 11.1 25bbls lost. Max Gas=1365units. Circulate and condition shut in and monitor well. Casing start=30psi after 1 hr remain 30psi. Open choke and bleed through trip tank. 7 min 46sec to gain 1 bbl. Open up bag. Trip in hole t/5492 up wt=110 dn wt=85 61.7bbls. Gained on TIH. Tight f/5401 t/5415 rot through 15rpm tq=2-3k. Working as directed by operator. Shut in, monitor Sicp start=20psi end=20psi. Fill drill pipe, catch pressure @ 35bbls. Shut down pump. Open bleeder and choke. 4/22/2013 Circulate and condition mud. 6bpm=900psi. Reciprocate pipe up wt=190 dn wt=125. Maintain mud wt in @ 11.8ppg. @ b.u.s. gas = 2335units mwt out=10.8 4/23/2013 Completion-slick line/wireline work m/u temp. Probe, cement and RIH on E-line. 4/24/2013 Completion-slick line/wireline work r/d e-line. Sheave. Break down y-block and swivel assembly. Trip out of hole f/6150 up wt=125 t/5040 up wt=105 Circulate and condition break. Pump fiber sweep around 8bpm=400psi 4/25/2013 Trip in hole, wash f/4380 t/4950 20spm=125psi down Wt=110. No hard tag encountered. Circulate and condition cbu 635gpm=1025psi 4/26/2013 Trip out of hole f/1911. Lay down cut jt. Slm. Out. Cut jt length=28.50 adjusted cement tag depth per slm=4212'. Pick up bha p/u cement retainer, 15' pup jt. C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 36 Survey Record Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) N/-S (ft) E/-W (ft) Vertical Section (ft) Dogleg Rate (o/100ft) 388.65 0.15 312.56 388.65 0.34 -0.37 -0.39 0.04 481.20 0.27 271.33 481.20 0.43 -0.68 -0.52 0.20 573.27 0.37 247.18 573.27 0.32 -1.17 -0.48 0.18 666.13 0.17 355.80 666.13 0.34 -1.46 -0.54 0.49 757.02 0.61 66.37 757.01 0.67 -1.03 -0.80 0.63 846.90 0.52 50.63 846.89 1.12 -0.27 -1.15 0.20 937.99 0.51 46.64 937.98 1.66 0.34 -1.60 0.04 1032.08 1.12 81.39 1032.06 2.09 1.56 -1.85 0.81 1126.06 1.16 78.92 1126.02 2.41 3.40 -1.92 0.07 1220.61 1.12 71.54 1220.55 2.88 5.21 -2.14 0.16 1315.01 0.75 61.66 1314.94 3.47 6.63 -2.53 0.43 1408.02 0.67 50.90 1407.94 4.10 7.59 -3.02 0.17 1502.40 0.71 48.18 1502.31 4.84 8.45 -3.64 0.05 1597.87 0.54 26.56 1597.78 5.64 9.10 -4.34 0.30 1692.02 0.59 19.74 1691.92 6.49 9.46 -5.13 0.09 1786.56 0.52 353.55 1786.46 7.37 9.57 -5.99 0.28 1880.36 0.46 349.20 1880.26 8.17 9.46 -6.80 0.08 1973.76 0.57 341.53 1973.65 8.97 9.24 -7.63 0.14 2069.00 0.53 335.47 2068.89 9.82 8.91 -8.51 0.07 2087.73 0.65 334.16 2087.62 10.00 8.82 -8.70 0.64 2213.06 1.12 326.45 2212.93 11.66 7.84 -10.48 0.39 2307.83 0.55 262.97 2307.69 12.38 6.87 -11.32 1.06 2403.92 2.06 196.36 2403.76 10.66 5.93 -9.75 1.99 2499.36 4.55 177.11 2499.03 5.23 5.64 -4.41 2.82 2595.93 6.36 177.09 2595.16 -3.93 6.10 4.73 1.87 2690.95 8.72 182.28 2689.36 -16.39 6.08 17.07 2.58 2708.84 7.38 186.58 2707.07 -18.88 5.90 19.51 8.21 2740.34 5.53 210.66 2738.37 -22.20 4.89 22.66 10.29 2770.49 4.79 232.01 2768.40 -24.23 3.16 24.43 6.77 2800.02 4.41 250.11 2797.84 -25.37 1.12 25.29 5.06 2827.22 4.20 267.01 2824.96 -25.78 -0.86 25.42 4.71 2860.22 4.24 290.06 2857.88 -25.42 -3.22 24.75 5.11 2901.10 5.00 316.73 2898.63 -23.61 -5.86 22.59 5.51 2932.09 5.61 334.77 2929.49 -21.25 -7.43 20.04 5.70 2969.78 7.12 338.31 2966.95 -17.42 -9.08 16.01 4.12 3065.72 12.44 335.76 3061.46 -2.46 -15.52 0.32 5.56 3161.84 18.27 336.41 3154.11 20.80 -25.81 -24.13 6.07 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 37 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) N/-S (ft) E/-W (ft) Vertical Section (ft) Dogleg Rate (o/100ft) 3257.05 23.28 335.48 3243.10 51.61 -39.60 -56.54 5.28 3352.69 27.24 334.24 3329.58 88.53 -56.96 -95.49 4.18 3448.63 30.71 333.88 3413.50 130.31 -77.30 -139.66 3.62 3544.46 34.04 337.09 3494.43 177.00 -98.52 -188.81 3.92 3639.71 37.48 337.79 3571.71 228.40 -119.85 -242.65 3.63 3735.62 40.46 339.86 3646.28 284.65 -141.61 -301.34 3.39 3831.27 43.99 341.30 3717.10 345.26 -162.95 -364.30 3.83 3926.49 47.19 341.53 3783.73 409.73 -184.62 -431.12 3.37 4023.12 50.82 341.09 3847.10 478.80 -207.99 -502.75 3.77 4118.90 53.78 340.56 3905.67 550.37 -232.89 -577.05 3.12 4213.31 56.57 340.08 3959.58 623.33 -258.99 -652.90 2.98 4309.38 60.19 339.32 4009.94 700.04 -287.37 -732.77 3.83 4405.09 60.30 339.40 4057.44 777.80 -316.66 -813.80 0.14 4499.43 60.21 337.69 4104.24 854.04 -346.62 -893.41 1.58 4594.11 60.31 337.28 4151.21 929.98 -378.10 -972.95 0.39 4688.10 60.34 336.66 4197.74 1005.14 -410.05 -1051.77 0.57 4783.82 60.28 336.94 4245.15 1081.57 -442.80 -1131.96 0.26 4875.51 60.32 337.20 4290.58 1154.92 -473.83 -1208.87 0.25 4971.59 60.34 337.04 4338.14 1231.84 -506.28 -1289.50 0.14 5065.27 60.32 336.70 4384.51 1306.69 -538.25 -1368.03 0.32 5159.88 60.38 336.14 4431.32 1382.05 -571.14 -1447.17 0.52 5255.60 60.39 336.07 4478.62 1458.13 -604.85 -1527.15 0.07 5347.42 60.34 336.47 4524.02 1531.19 -636.97 -1603.91 0.38 5442.80 60.38 336.07 4571.19 1607.08 -670.33 -1683.65 0.37 5537.20 60.34 336.58 4617.88 1682.22 -703.28 -1762.59 0.47 5632.53 60.38 336.08 4665.02 1758.11 -736.55 -1842.32 0.46 5727.88 60.38 336.78 4712.15 1834.08 -769.69 -1922.11 0.64 5824.19 60.31 335.69 4759.80 1910.68 -803.42 -2002.60 0.99 5920.48 60.39 336.69 4807.43 1987.24 -837.20 -2083.06 0.91 6014.93 60.34 336.83 4854.13 2062.68 -869.59 -2162.22 0.14 6110.22 60.38 338.35 4901.25 2139.25 -901.16 -2242.38 1.39 6205.94 60.54 336.80 4948.45 2216.22 -932.92 -2322.98 1.42 6300.53 60.44 335.42 4995.04 2291.49 -966.26 -2402.10 1.28 6393.50 60.54 336.16 5040.84 2365.28 -999.44 -2479.73 0.71 6487.61 60.55 338.35 5087.12 2440.84 -1031.12 -2558.92 2.02 6582.23 60.42 335.67 5133.75 2516.63 -1063.28 -2638.39 2.47 6676.54 60.74 334.44 5180.09 2591.11 -1097.92 -2716.91 1.18 6771.14 60.73 336.47 5226.34 2666.17 -1132.20 -2795.95 1.86 6865.04 60.81 337.01 5272.19 2741.45 -1164.56 -2874.95 0.51 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qugruk #3A 38 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) N/-S (ft) E/-W (ft) Vertical Section (ft) Dogleg Rate (o/100ft) 6960.57 60.70 337.25 5318.86 2818.25 -1196.96 -2955.46 0.24 7054.60 60.88 337.93 5364.74 2894.13 -1228.25 -3034.90 0.66 7174.82 60.38 338.12 5423.70 2991.28 -1267.45 -3136.51 0.44 7242.43 58.73 338.03 5457.96 3045.35 -1289.22 -3193.05 2.45 7335.34 58.73 339.35 5506.20 3119.33 -1318.08 -3270.28 1.22 7430.06 58.13 338.76 5555.79 3194.70 -1346.92 -3348.88 0.82 7524.47 58.15 338.91 5605.62 3269.48 -1375.87 -3426.92 0.13 7620.69 58.26 339.21 5656.31 3345.86 -1405.10 -3506.58 0.29 7714.32 58.11 338.33 5705.67 3420.02 -1433.91 -3583.98 0.81 7807.93 58.20 339.13 5755.06 3494.13 -1462.76 -3661.34 0.73 7903.28 58.25 338.15 5805.27 3569.62 -1492.28 -3740.15 0.87 7997.68 58.19 338.94 5855.42 3644.08 -1521.52 -3817.91 0.71 8092.78 58.30 339.24 5905.48 3719.62 -1550.38 -3896.69 0.29 8186.94 58.26 338.85 5954.98 3794.41 -1579.02 -3974.70 0.36 8279.95 58.29 337.70 6003.89 3867.90 -1608.31 -4051.50 1.05 8376.27 58.34 336.58 6054.49 3943.42 -1640.15 -4130.67 0.99 8470.73 58.12 335.11 6104.23 4016.69 -1673.01 -4207.75 1.34 8564.37 58.23 334.94 6153.60 4088.82 -1706.60 -4283.78 0.20 8662.24 58.39 336.11 6205.02 4164.61 -1741.10 -4363.59 1.03 8757.67 58.25 336.38 6255.13 4238.94 -1773.81 -4441.69 0.28 8853.88 58.22 335.57 6305.78 4313.66 -1807.12 -4520.26 0.71 8947.85 58.12 335.90 6355.34 4386.44 -1839.93 -4596.85 0.31 9043.89 58.19 335.87 6406.01 4460.90 -1873.26 -4675.17 0.07 9140.34 58.19 335.71 6456.85 4535.66 -1906.87 -4753.82 0.15 9235.02 58.17 336.82 6506.77 4609.30 -1939.25 -4831.20 1.00 9330.20 58.26 336.98 6556.90 4683.72 -1970.99 -4909.26 0.17 9424.79 58.23 336.87 6606.68 4757.72 -2002.52 -4986.88 0.11 9521.55 57.73 336.45 6657.99 4833.04 -2035.02 -5065.93 0.64 9615.87 57.70 336.76 6708.38 4906.23 -2066.68 -5142.76 0.28 9713.65 57.90 336.80 6760.48 4982.26 -2099.30 -5222.54 0.21 9810.54 57.85 336.78 6812.00 5057.68 -2131.64 -5301.68 0.05 9906.66 57.75 338.94 6863.22 5133.02 -2162.29 -5380.49 1.91 10000.74 57.74 338.13 6913.42 5207.06 -2191.41 -5457.82 0.73 10189.69 57.76 339.13 7013.73 5355.98 -2250.27 -5613.39 0.42 10283.63 57.66 338.72 7063.91 5430.07 -2278.83 -5690.70 0.88 10379.29 57.40 338.45 7115.26 5505.21 -2308.30 -5769.15 0.38 10445.70 57.08 337.17 7151.20 5556.92 -2329.39 -5823.27 0.36 10546.00 57.08 337.17 7205.71 5634.52 -2362.05 -5904.60 1.68 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qu g r u k # 3 A 39 5. 2 B i t R e c o r d Bi t Si z e Ma k e Ty p e / Se r i a l # Je t s / TF A De p t h I n MD / T V D De p t h Ou t MD / T V D To t a l Fo o t a g e Bi t Hr s Av g . RO P (f t / h r ) Av g . WO B (K l b s ) Av g RP M We a r 1 1 6 ” H u g h e s VM - 1 52 1 3 4 9 6 1X 1 2 3X 1 4 0. 5 6 1 11 3 ’ 2 1 3 5 ’ 2 0 2 2 ’ 4 4 . 1 4 5 . 9 1 3 . 5 1 1 0 2 - 3 - L N - N - 3 - X - P N -TD 2 1 2 ¼ ” N O V E 1 7 0 8 4 6 5x 1 2 , 0. 5 5 2 21 2 0 ’ 6 9 2 5 ’ 4 8 0 5 ’ 5 2 . 8 9 0 . 7 2 0 1 4 7 1 - 1 - C T - C - X - X - N O - CP 3 Pi l o t H o l e On l y 4 1 2 ¼ ” H u g h e s 5 2 2 4 3 3 0 3x 1 8 1x 1 6 0. 9 4 2 27 0 2 ' 2 9 9 0 ’ 2 8 8 ’ 13 . 0 22 . 1 9 2 1 8 0 - 0 - N O - A - E - I - N O - B H A 5 8 ½ ” Hy c a l o g 1 1 2 8 8 7 5x 1 1 2x 1 0 0. 6 1 7 29 9 0 ' 80 1 5 ’ 75 5 6 ’ 5 8 . 3 8 6 . 2 1 3 3 2 1 0 - 0 - W T - S - X - I - N O - B O P 6 8 ½ ” Hy c a l o g E 1 5 7 9 7 8 7x 1 0 1x 1 1 0. 6 3 0 80 1 5 ’ 1 0 5 4 6 ’ 2 5 3 1 ’ 2 7 . 2 9 3 . 1 1 4 0 2 1 0 - 0 - N O - A - X - I - P N -TD CO N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Qu g r u k # 3 A 40 5. 3 M u d R e c o r d Co n t r a c t o r : H a l l i b u r t o n | B a r o i d KC l / P o l y m e r Da t e De p t h / T V D MW VI S PV YP Ge l s FL FC So l O/ W Sd pH Al k Cl Ca 4/ 1 / 2 0 1 3 7 5 0 0 ' / 7 2 3 3 ' 1 0 . 4 5 5 6 2 0 1 6 6 / 1 2 / 2 4 6 . 4 2 / 2 1 0 . 4 1 . 0 / 8 7 . 0 0 . 0 9 1 0 . 3 2 . 6 0 3 3 0 0 0 2 0 0 4/ 2 / 2 0 1 3 2 8 4 3 ' / 2 8 4 0 ' 1 0 . 4 0 6 8 2 1 2 0 7 / 1 8 / 2 5 5 . 9 2 / 2 8 . 1 1 . 0 / 8 8 . 5 0 . 0 5 1 0 . 1 2 . 3 0 3 1 0 0 0 2 8 0 4/ 3 / 2 0 1 3 2 9 9 0 ' / 2 9 8 7 ' 1 0 . 4 5 5 8 1 7 1 7 5 / 1 1 / 1 9 5 . 9 2 / 2 8 . 8 1 . 0 / 8 8 . 0 0 . 0 7 1 0 . 6 2 . 3 0 2 9 0 0 0 4 0 0 4/ 4 / 2 0 1 3 4 3 1 5 ' / 4 0 3 1 ' 1 0 . 4 0 5 4 1 8 2 3 6 / 1 7 / 2 4 5 . 0 2 / 2 8 . 9 1 . 0 / 8 8 . 0 0 . 0 9 1 0 . 7 1 . 6 0 2 8 0 0 0 4 8 0 4/ 5 / 2 0 1 3 6 1 1 2 ' / 3 7 4 1 ' 1 0 . 4 0 6 8 2 0 2 0 7 / 1 7 / 2 4 6 . 4 2 / 2 1 0 . 6 1 . 0 / 8 7 . 0 0 . 0 5 9 . 9 0 . 4 0 2 8 0 0 0 3 6 0 4/ 6 / 2 0 1 3 6 8 9 8 ' / 5 2 8 0 ' 1 0 . 4 0 5 1 1 7 2 3 9 / 1 9 / 2 7 6 . . 2 2 / 2 9 . 5 1 . 0 / 8 7 . 0 0 . 0 5 9 . 9 0 . 2 0 3 3 0 0 0 3 6 0 4/ 7 / 2 0 1 3 7 9 5 0 ' / 5 8 2 5 ' 1 0 . 4 0 6 4 1 7 2 5 1 1 / 2 1 / 3 1 6 . 5 2 / 2 1 0 . 2 1 . 0 / 8 6 . 5 0 . 0 9 9 . 4 0 . 4 0 3 0 0 0 0 1 6 0 4/ 8 / 2 0 1 3 8 0 1 5 ' / 5 8 6 4 ' 1 0 . 4 0 5 9 1 3 2 6 1 0 / 2 1 / 3 1 6 . 8 2 / 3 9 . 9 1 . 0 / 8 7 . 0 0 . 0 5 9 . 1 0 . 2 5 2 8 0 0 0 1 6 0 4/ 9 / 2 0 1 3 8 0 1 5 ' / 5 8 6 4 ' 1 0 . 4 0 7 8 1 7 2 5 1 1 / 2 0 / 3 2 6 . 7 2 / 2 9 . 9 1 . 0 / 8 7 . 0 0 . 0 5 9 . 0 0 . 2 5 2 8 0 0 0 1 6 0 4/ 1 0 / 2 0 1 3 8 5 6 0 ' / x x x x 1 0 . 8 5 6 2 2 0 1 9 1 1 / 2 4 / 3 1 5 . 8 2 / 2 1 0 . 1 1 . 0 / 8 5 . 0 0 . 0 7 9 . 4 0 . 4 0 5 2 0 0 0 1 4 0 4/ 1 1 / 2 0 1 3 9 9 1 6 ' / 6 8 9 5 ' 1 0 . 8 0 6 0 1 9 1 6 9 / 1 7 / 2 5 4 . 9 2 / 2 8 . 8 1 . 0 / 8 5 . 3 0 . 0 5 9 . 4 0 . 2 2 6 5 0 0 0 1 6 0 4/ 1 2 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 0 . 8 0 6 0 2 0 1 6 6 / 1 6 / 2 3 5 . 5 1 /2 9 . 1 1 . 0 / 8 5 . 5 0 . 0 5 9 . 5 0 . 5 0 5 8 0 0 0 1 0 0 4/ 1 3 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 0 . 9 5 8 8 2 0 2 9 1 5 / 2 8 / 3 8 6 . 0 2/ 2 1 0 . 4 1 . 0 / 8 4 . 3 0 . 1 0 8 . 8 0 . 5 0 5 8 0 0 0 1 0 0 4/ 1 4 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 0 . 9 0 7 6 2 2 3 5 9 / 1 9 / 3 2 8 . 0 2 /2 1 0 . 4 1 . 5 / 8 4 . 0 0 . 0 5 8 . 4 0 . 1 0 5 5 0 0 0 1 0 0 4/ 1 5 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 0 . 9 0 5 2 1 9 2 5 7 / 1 8 / 2 9 8 . 0 2 /2 9 . 9 3 . 0 / 8 4 . 0 0 . 0 5 8 . 0 0 . 1 3 4 2 0 0 0 1 2 0 4/ 1 6 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 1 . 3 0 5 7 1 9 2 7 1 1 / 2 8 / 4 0 8 . 5 2/ 2 1 1 . 6 3 . 0 / 8 2 . 5 0 . 0 5 8 . 5 0 . 1 2 4 0 0 0 0 1 2 0 4/ 1 7 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 4 5 5 4 2 0 2 8 7 / 1 8 / 2 9 1 0 2 / 2 1 6 . 8 3 . 0 / 7 7 . 5 0 . 0 5 8 . 0 0 . 1 2 4 0 0 0 0 1 6 0 4/ 1 8 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 4 0 6 0 2 1 2 8 1 0 / 2 2 / 3 8 1 0 2 /2 1 6 . 9 3 . 0 / 7 7 . 5 0 . 0 5 8 . 0 0 . 1 2 3 8 0 0 0 1 8 0 4/ 1 9 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 2 0 5 9 2 0 2 6 8 / 1 9 / 2 6 9 . 5 2 /2 1 6 . 4 2 . 0 / 7 9 . 0 0 . 0 5 8 . 0 0 . 1 2 3 8 0 0 0 1 6 0 4/ 2 0 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 2 0 5 9 2 0 2 6 8 / 1 9 / 2 6 9 . 5 2 /2 1 6 . 4 2 . 0 / 7 9 . 0 0 . 0 5 8 . 0 0 . 1 2 3 8 0 0 0 1 6 0 4/ 2 1 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 1 . 8 0 6 6 1 7 2 0 7 / 1 6 / 2 8 9 . 0 2 /2 1 4 . 9 2 . 0 / 8 1 . 0 0 . 0 4 8 . 2 0 . 1 5 3 0 0 0 0 1 2 0 4/ 2 2 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 0 0 7 1 2 1 2 5 8 / 1 9 / 9 0 4 . 8 1 /2 1 4 . 9 2 . 5 / 8 0 . 5 0 . 0 8 8 . 3 0 . 1 3 3 0 0 0 0 1 2 0 4/ 2 3 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 0 0 7 1 2 1 2 5 8 / 1 9 / 9 0 4 . 8 1 /2 1 4 . 9 2 . 5 / 8 0 . 5 0 . 0 8 8 . 3 0 . 1 3 3 0 0 0 0 1 2 0 4/ 2 4 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 1 . 8 0 9 7 2 0 3 1 1 0 / 1 9 / 2 8 4 . 5 1/ 2 1 4 . 7 3 . 0 / 8 0 . 3 0 . 0 6 8 . 2 0 . 1 3 3 0 0 0 0 1 2 0 4/ 2 5 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 0 0 7 2 2 1 2 9 9 / 1 9 / 2 8 4 . 2 1 /1 1 3 . 9 3 . 0 / 8 1 . 3 0 . 0 4 8 . 6 0 . 1 4 2 8 0 0 0 1 2 0 4/ 2 6 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 0 0 7 2 2 1 2 9 9 / 1 9 / 2 8 4 . 2 1 /1 1 3 . 9 3 . 0 / 8 1 . 3 0 . 0 4 8 . 6 0 . 1 4 2 6 0 0 0 1 2 0 4/ 2 7 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 0 0 6 9 1 9 2 9 9 / 2 2 / 3 5 4 . 5 1 / 2 1 5 . 1 3 . 0 / 8 0 . 3 0 . 0 6 1 0 . 8 1 . 5 0 2 4 0 0 0 1 2 0 4/ 2 8 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 1 2 . 1 0 6 9 1 9 2 9 9 / 2 2 / 3 5 4 . 5 ½ 15 . 1 3 . 0 / 8 0 . 3 0 . 0 6 1 0 . 8 1 . 5 0 2 4 0 0 0 1 2 0 4/ 2 9 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 4/ 3 0 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' 5/ 1 / 2 0 1 3 1 0 5 4 6 ' / 7 2 0 5 ' Ab b r e v i a t i o n s MW = M u d W e i g h t G e l s = G e l S t r e n g t h O / W = O i l t o W a t e r r a t i o C a = C a l c i u m ( H a r d n e s s ) VI S = F u n n e l V i s c o s i t y F L = F i l t r a t e ( F l u i d ) L o s s Sd = S a n d C o n t e n t ( % ) E C D = E f f e c t i v e C i r c u l a t i n g De n s i t y PV = P l a s t i c V i s c o s i t y F C = F i l t e r C a k e A l k = A l k al i n i t y YP = Y i e l d P o i n t S o l = S o l i d s ( % ) C l = C h l o r i d e s CO N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) 41 6 DAILY REPORTS C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #1 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE 2/27/13 DEPTH 110 PRESENT OPERATION Spudding TIME 4:00am YESTERDAY 110 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 110' MD 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 16" Hughes 5213496 1x12, 3x14 3.250 16 0 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0.0 @ 100.00000 0 @ 100.00000 0.0 FT/HR SURFACE TORQUE 0 @ 100.00000 0 @ 100.00000 0.0 AMPS WEIGHT ON BIT 0 @ 100.00000 0 @ 100.00000 0.0 KLBS ROTARY RPM 0 @ 100.00000 0 @ 100.00000 0.0 RPM PUMP PRESSURE 0 @ 100.00000 0 @ 100.00000 0.0 PSI DRILLING FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 100.00000 0 @ 100.00000 0.0 TRIP GAS CUTTING GAS 0 @ 100.00000 0 @ 100.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 100.00000 0 @ 100.00000 0.0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 100.00000 0 @ 100.00000 0.0 AVG PROPANE (C-3) 0 @ 100.00000 0 @ 100.00000 0.0 CURRENT BUTANE (C-4) 0 @ 100.00000 0 @ 100.00000 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 100.00000 0 @ 100.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Preparing to spud at 110' MD. CANRIG PERSONNEL ON BOARD Britten Adams, Levi Potter, Daniel Hillegeist, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5860.00 REPORT BY Britten Adams Page 1 of 1Daily Report 2/27/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #2 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Feb 28, 2013 DEPTH 773' PRESENT OPERATION Drilling ahead TIME 04:00:00 YESTERDAY 113' 24 HOUR FOOTAGE 660' CASING INFORMATION 20" Cond @ 110' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 388.65 0.15 312.56 388.65 481.20 0.27 271.33 481.20 573.27 0.37 247.18 573.27 666.13 0.17 355.80 666.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 307.2 @ 113.00000 2.8 @ 602.00000 72.2 5.17979 FT/HR SURFACE TORQUE 3396 @ 726.00000 809 @ 284.00000 1561.3 1013.71289 AMPS WEIGHT ON BIT 26 @ 416.00000 0 @ 279.00000 6.3 2.35147 KLBS ROTARY RPM 142 @ 500.00000 57 @ 116.00000 107.3 122.09167 RPM PUMP PRESSURE 3388 @ 660.00000 2166 @ 275.00000 2819.5 3246.41504 PSI DRILLING FLUIDS REPORT DEPTH 773' MW 9.85 VIS 65 PV 29 YP 23 FL 5.8 Gels 15/29/40 CL- 1500 FC 3 SOL 7.2 SD 2 OIL 1.0/91.5 MBT 25 pH 9.5 Ca+ 60 CCI MWD SUMMARY INTERVAL 113' TO 773' TOOLS Bit, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 48 @ 279.00000 0 @ 455.00000 5.3 TRIP GAS 0 CUTTING GAS 0 @ 755.00000 0 @ 755.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 90900 @ 735.00000 22 @ 231.00000 3249.7 CONNECTION GAS HIGH 0 ETHANE (C-2) 1888 @ 735.00000 0 @ 553.00000 43.0 AVG 7.5 PROPANE (C-3) 0 @ 755.00000 0 @ 755.00000 0.0 CURRENT 18 BUTANE (C-4) 0 @ 755.00000 0 @ 755.00000 0.0 CURRENT BACKGROUND/AVG 18 PENTANE (C-5) 0 @ 755.00000 0 @ 755.00000 0.0 HYDROCARBON SHOWS N/A INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Conglomerates to conglomerate sands, sand with trace claystone. PRESENT LITHOLOGY Conglomerate sand, sand. DAILY ACTIVITY SUMMARY Rotary drilling F/ 113' T/ 374', monitor well, POOH F/ 374' T/ 100'. Calibrate MWD and rig block position, lay down BHA, rig evacuation drill with all peronnel on location. Service rig, pick up 8.25" BHA, F/ Surface T/ 288'. Circulate and condition, wash F/ 288' T/ 374'. Rotary drilling F/ 374' T/773'. Lost gas data F/ 439' T/ 531' due to broken agitator blades. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5860.00 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 2/28/2013 file://C:\Documents and Settings\EpochAdmin\My Documents\My Wells\Repsol\2013022... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #3 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Mar 01, 2013 DEPTH 1175' MD PRESENT OPERATION Reaming hole to shoe. TIME 04;00:00 YESTERDAY 773' MD 24 HOUR FOOTAGE 402' MD CASING INFORMATION 20" Cond @110' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 756.02 0.61 66.37 756.01 846.90 0.52 50.63 846.89 937.99 0.51 46.64 937.98 1032.08 1.12 81.39 1032.06 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 309.1 @ 896.00000 1.1 @ 889.00000 67.0 0.00000 FT/HR SURFACE TORQUE 5291 @ 1108.00000 921 @ 890.00000 2692.9 1407.80164 AMPS WEIGHT ON BIT 30 @ 1005.00000 0 @ 1007.00000 14.4 1.51708 KLBS ROTARY RPM 135 @ 777.00000 77 @ 1165.00000 104.9 86.92509 RPM PUMP PRESSURE 3404 @ 796.00000 1993 @ 893.00000 2186.6 2131.44702 PSI DRILLING FLUIDS REPORT DEPTH 1110' MW 10 VIS 72 PV 19 YP 23 FL 70 Gels 9/21/30 CL- 1500 FC 3 SOL 8.2 SD 5.0 OIL 0.5/91.0 MBT 30 pH 9 Ca+ 60 CCI MWD SUMMARY INTERVAL 113' TO 1175' TOOLS Bit, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 30 @ 844.00000 0 @ 942.00000 11.8 TRIP GAS 0 CUTTING GAS 0 @ 1175.00000 0 @ 1175.00000 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 22609 @ 982.00000 94 @ 942.00000 4204.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 127 @ 982.00000 0 @ 922.00000 13.5 AVG 12.6 PROPANE (C-3) 0 @ 1175.00000 0 @ 1175.00000 0.0 CURRENT 0 BUTANE (C-4) 0 @ 1175.00000 0 @ 1175.00000 0.0 CURRENT BACKGROUND/AVG 10 PENTANE (C-5) 0 @ 1175.00000 0 @ 1175.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Conglomerates sands, sands. PRESENT LITHOLOGY 60% claystone, 30% sands, 10% conglomerate sands DAILY ACTIVITY SUMMARY Rotary drilling from 621'-815' MD; 15K WOB; 189 SPM; 556 GPM. Rotary drilling from 815'-896' MD; 25K WOB; 193 SPM; 565 GPM; Hard spot at 704'-706' MD. Downtime due to top drive trouble shoot. Ground fault (circulated @880'MD). Rotary drilling from 896'-1134' MD with 20K WOB; 575 GPM. P/U at 1175' MD for wiper trip. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams Page 1 of 1Daily Report 3/1/2013 file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL ... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #4 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Mar 02, 2013 DEPTH 2135.00000 PRESENT OPERATION Cleaning hole for surface casing TIME 04:15:41 YESTERDAY 1175.00000 24 HOUR FOOTAGE 960 CASING INFORMATION 20" Cond @ 113' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1786.56 0.52 353.55 1786.46 1880.36 0.46 349.20 1880.25 1973.76 0.57 341.53 1973.65 2069.00 0.53 335.47 2068.88 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 147.7 @ 1556.00000 0.2 @ 1973.00000 67.4 14.86408 FT/HR SURFACE TORQUE 5591 @ 1228.00000 1054 @ 1551.00000 2667.3 1908.06958 AMPS WEIGHT ON BIT 37 @ 2127.00000 0 @ 1572.00000 17.1 21.80798 KLBS ROTARY RPM 142 @ 1415.00000 74 @ 1869.00000 113.4 116.01726 RPM PUMP PRESSURE 2531 @ 2089.00000 1917 @ 1914.00000 2061.7 2448.60083 PSI DRILLING FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL 113' MD TO 2135' MD TOOLS Bit, Gamma, Resistivity GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 351 @ 1218.00000 1 @ 2008.00000 22.0 TRIP GAS 0 CUTTING GAS 0 @ 2135.00000 0 @ 2135.00000 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 40668 @ 1216.00000 248 @ 1277.00000 5254.6 CONNECTION GAS HIGH 0 ETHANE (C-2) 621 @ 1216.00000 0 @ 1472.00000 27.4 AVG 14.6 PROPANE (C-3) 74 @ 1216.00000 0 @ 1296.00000 3.1 CURRENT 0 BUTANE (C-4) 106 @ 1216.00000 0 @ 1296.00000 1.0 CURRENT BACKGROUND/AVG 20 PENTANE (C-5) 0 @ 2135.00000 0 @ 2135.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% claystone, 30% sands, 10% conglomerate sands PRESENT LITHOLOGY 50% claystone, 30% siltstone, 10% tuff, 10% sands DAILY ACTIVITY SUMMARY Rotary drilling from 1134'-1175' MD; 20K WOB; 197 SPM; 575 GPM. Circulate and condition; CBU; RECIP from 1175'-1080' MD. Trip out of hole; Monitor well static; POOH from 1175'-345' MD. Rotary drilling from 1175'-1190' MD; 197 SPM; 574 GPM. Rotary drilling from 1190'-1552' MD; 20K WOB; 197 SPM; 575 GPM. Rotary drilling from 1552'-2040' MD; 25K WOB; 600 GPM. Rotary drilling from 2040'-2035' MD. Surface casing depth 2135' MD. Cleaning hole for casing. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams Page 1 of 1Daily Report 3/2/2013 file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL ... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #5 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Mar 03, 2013 DEPTH 2135' PRESENT OPERATION Running casing in hole. TIME 04:15:41 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD 13 3/8" Surface casing @ 2135' MD 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 16" Hughes 5213496 1x12, 3x14 113 2135 2022 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 FLUIDS REPORT DEPTH 2135' MW 10 VIS 74 PV 28 YP 25 FL 4.9 Gels 11/28/52 CL- 1100 FC 3 SOL 8.7 SD 1 OIL 1/90 MBT 25 pH 8.6 Ca+ 40 CCI MWD SUMMARY INTERVAL 113' TO 2135' TOOLS Bit, Gamma, Resistivity 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 50% claystone, 30% siltstone, 10% tuff, 10% sands. PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Circulate and condition hole; CBU/RECIP 2135'-2110' MD. Trip out of hole and monitor well; MWD survey; POOH from 2135'-950' MD. Trip in hole from 950'-2135' MD. Circulate and condition hole; CBU/RECIP 2135'-2085' MD. Circulate HI-VIS sweep. Trip out of hole and monitor well for 5 minutes; POOH from 2135'-921' MD. POOH from 921'-256' MD. Lay down BHA; L/D 8.25" from 256'to surface. Clean and clear rig floor. Rig up/down 13 3/8" casing. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams Page 1 of 1Daily Report 3/3/2013 file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL ... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Muddlogging Report #6 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Layyr Burns DATE Mar 04, 2013 DEPTH 2135' PRESENT OPERATION Surface Casing TIME 04:00:00 YESTERDAY 2135' CASING INFORMATION 20" Cond @ 113' MD 13 3/8" Surface casing @2135' MD DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113 2135 2022 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Run casing w/ size of 13 3/8"; Filling joints on the fly and topping off every 5th joint until 2082' MD. Attempt to M/U hanger and encountered prblems with M/U. Wait on 13 3/8" BTC collars. M/U hanger and LND; JT-LND casing string with shoe depth of 2120' MD. Rig up cement hose and other circulated equipment. Circulated and condition at 2120' MD; Break circulation stage up. Rig down cement hose and other equipment. Rig down top split landing joint; Clearing RF of casing equipment. Remove casing tools from rig floor; Put stabbing board up; change out elevators and bails. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi potter, Britten Adams Doug Acker, en Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #7 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 05, 2013 DEPTH 2135' PRESENT OPERATION Letting cement dry in casing. TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2135' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Remove casing tools from rig floor; put stabbing board up change out elevators and bails. Trip 5” drill pipe and stab in sub to 2040’ MD. Lay SGN drill line; made up pump sub on stand 22. Change saver sub and gripper dies; circulate and condition stage pump up to .5 BBL. Circulate and condition while stabbed into float collar at 78 GPM; 75 PSI. Primary cementing with 4000 PSI; Pump 75 BBL of mudpush II at 5 BPM; 210 PSI. Pump 830 BBLS with 10.7 PPG lead cement at 3.65 BBLS/MIN. Displace with 11 BBLS at 10 PPG mud at 4.5 BBLS/MIN. Pump 10 BBLS at 10 PPG mud at 2 BPM; Check floats (Good); Rig down circulated equipment. Unsting from float collars; pull up to 1951’ MD; Drop wiper in sting TOOH from 1951’ MD to surface. Lay down BHA. Clear and clean rig floor. Rig up to pull landing joints. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #8 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 06, 2013 DEPTH 2135' PRESENT OPERATION Nipple up BOPs TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2135' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH MW 10 VIS 59 PV 22 YP 15 FL 8.4 Gels 7/12/22 CL- 900 FC 2/0 SOL 9.8 SD 0.80 OIL 1.0/89.0 MBT 25 pH 8.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rig up/down to run casing. Pull and lay down landing joint. Lay down all other casing equipment. Drain stack and rinse. Nipple up/down diverter. Install well heads. Nipple up BOPs. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #9 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 07, 2013 DEPTH 2135' PRESENT OPERATION Nipple up BOPs TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2135' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH MW 10 VIS 55 PV 18 YP 14 FL 8.4 Gels 5/11/18 CL- 900 FC 3/0 SOL 9.8 SD 0.75 OIL 1.0/89.0 MBT 25 pH 8.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Nipple up BOPs, make up single gate, put riser flange on bag, hook up choke hose. Install double gate BOP, offload spud mud from pit #3. Set lifting ring on top of double gate. Prep annular for installation, clean pit #3, take on 405 BBLS KCL mud. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogger Report #10 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR DATE Mar 08, 2013 DEPTH 2135.00000 PRESENT OPERATION Picking up test joint for BOP TIME 04:00:00 YESTERDAY 2135.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface Casing @2135' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH MW 10.20 VIS 87 PV 13 YP 19 FL 5.2 Gels 7/11/15 CL- 31000 FC 2 SOL 7.4 SD 0.05 OIL 1.0/90.0 MBT 25 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Nipple Up BOP components, Pick up Test joint for BOP CANRIG PERSONNEL ON BOARD Daneil Hillegeist, Levi Potter, Britten Adams, Coug Ackers, Ben Handley, Kelly Childers DAILY COST 5710 REPORT BY Levi Potter Page 1 of 1Daily Report 3/8/2013 file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WEL ... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #11 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 09, 2013 DEPTH 2135' PRESENT OPERATION Finishing BOP testing TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2135' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH 2135' MW 10.2 VIS 88 PV 11 YP 16 FL 5.4 Gels 7/9/11 CL- 31000 FC 2/0 SOL 8.4 SD 0.05 OIL 0.0/90.0 MBT 2.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Canrig sample interval 110' to 2135' shipped out on 3/9/2013. Rig: Test BOPs, lay down test tool, pull plug, lay down test joint. Pick up drill pipe and trip into hole 61 joints, rack back 21 stands. Circulate and condition mud. Trip in hole, pick up 5 inch drill pipe and trip into hole to 1723'. Pick up drill pipe, trip out of hole. Pick up test tools, test BOPs. Lay down test tools, pull test plug. Pick up running tool, run into hole with wear ring, run in LDS, lay down running tool and test joint. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/9/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #12 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 10, 2013 DEPTH 2135' PRESENT OPERATION Picking up BHA TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2120' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 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 FLUIDS REPORT DEPTH 2135' MW 10.2 VIS 86 PV 11 YP 16 FL 6.0 Gels 6/8/12 CL- 31000 FC 2/0 SOL 8.4 SD 0.05 OIL 0.0/90.0 MBT 2.5 pH 9.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Repair top drive, pick up and rack drill pipe, pick up test tools, test BOPs, lay down test tools, pick up BHA. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/10/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #13 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 11, 2013 DEPTH 2135' PRESENT OPERATION Running into hole TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @113' MD 13 3/8" Surface casing @ 2120' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' 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 FLUIDS REPORT DEPTH 2135' MW 10.2 VIS 70 PV 12 YP 14 FL 6 Gels 5/8/11 CL- 31000 FC 2/0 SOL 8.4 SD 0.05 OIL 0.0/90.0 MBT 2.5 pH 9 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pick up drill pipe and run into hole, rack back drill pipe. Circulate and condition. Trip out of hole, monitor well, blow down top drive, pull out of hole from 1915'. Pick up BHA and run into hole. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/11/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 14 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 12, 2013 DEPTH 2155' PRESENT OPERATION Completing Fit Test TIME 04:00:00 YESTERDAY 2135' 24 HOUR FOOTAGE 20 CASING INFORMATION 20" Cond @ 113' MD 13 3/8" Surface casing @ 2120' MD 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 95.2 @ 2136.00000 5.8 @ 2138.00000 66.2 45.57130 FT/HR SURFACE TORQUE 3949 @ 2147.00000 1908 @ 2135.00000 3409.5 3419.08325 AMPS WEIGHT ON BIT 21 @ 2135.00000 8 @ 2154.00000 12.0 9.02661 KLBS ROTARY RPM 116 @ 2135.00000 24 @ 2137.00000 36.8 31.36149 RPM PUMP PRESSURE 2448 @ 2135.00000 946 @ 2138.00000 1197.8 1078.51306 PSI DRILLING FLUIDS REPORT DEPTH 2135' MW 10.2 VIS 67 PV 12 YP 14 FL 6 Gels 5/8/11 CL- 30000 FC 2/0 SOL 8.5 SD 0.05 OIL 0.0/90.0 MBT 2.5 pH 9.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 29 @ 2138.00000 9 @ 2155.00000 23.0 TRIP GAS N/A CUTTING GAS 0 @ 2155.00000 0 @ 2155.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 7151 @ 2138.00000 3529 @ 2151.00000 4933.6 CONNECTION GAS HIGH N/A ETHANE (C-2) 24 @ 2138.00000 1 @ 2150.00000 10.8 AVG 20 PROPANE (C-3) 0 @ 2155.00000 0 @ 2155.00000 0.0 CURRENT 0 BUTANE (C-4) 0 @ 2155.00000 0 @ 2155.00000 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 2155.00000 0 @ 2155.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 20% Tuff, 30% Siltstone, 50% Claystone PRESENT LITHOLOGY 20% Tuff, 30% Siltstone, 50% Claystone DAILY ACTIVITY SUMMARY Service top drive, pressure test casing, drill out of cement. Drilled ahead 20', performed FIT test. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/12/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 15 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goddwyn, Larry Burns DATE Mar 13, 2013 DEPTH 3152.00000 PRESENT OPERATION Rotary drilling to 3240' MD TIME 03:39:56 YESTERDAY 2135.00000 24 HOUR FOOTAGE 1017 CASING INFORMATION 20" Cond @ 113' MD 13 3/8" Surface casing @ 2120' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2087.73 0.65 334.16 2087.62 2213.06 1.12 326.45 2212.93 2307.83 0.55 262.97 2307.69 2403.92 2.06 196.36 2403.76 2595.93 6.36 177.09 2595.17 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12,3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25 NOV E170846 5x125 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 531.5 @ 3051.00000 2.3 @ 2383.00000 100.5 75.55387 FT/HR SURFACE TORQUE 8037 @ 3045.00000 5 @ 2956.00000 2863.6 4284.85352 AMPS WEIGHT ON BIT 45 @ 2956.00000 0 @ 2545.00000 9.8 6.22002 KLBS ROTARY RPM 116 @ 2135.00000 0 @ 3085.00000 39.8 55.15124 RPM PUMP PRESSURE 2448 @ 2135.00000 -1 @ 2956.00000 1339.0 1363.21191 PSI DRILLING FLUIDS REPORT DEPTH 2805' MW 10.20 VIS 64 PV 13 YP 20 FL 70 Gels 6/9/12 CL- 33000 FC 2 SOL 7.6 SD 0.04 OIL 0.7 MBT 2.5 pH 9.7 Ca+ 40 CCI MWD SUMMARY INTERVAL 2135' TO 31532' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 944 @ 2472.00000 0 @ 2964.00000 92.7 TRIP GAS CUTTING GAS 0 @ 3152.00000 0 @ 3152.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 65300 @ 2697.00000 139 @ 2964.00000 11201.5 CONNECTION GAS HIGH ETHANE (C-2) 7499 @ 2465.00000 1 @ 2162.00000 856.2 AVG 80 PROPANE (C-3) 6413 @ 2466.00000 1 @ 2211.00000 598.7 CURRENT 25 BUTANE (C-4) 17274 @ 2472.00000 3 @ 2964.00000 526.3 CURRENT BACKGROUND/AVG 86 PENTANE (C-5) 11144 @ 2472.00000 1 @ 2635.00000 259.8 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 20% Tuff, 30% Siltstone, 50% Claystone PRESENT LITHOLOGY 30% Claystone, 70% Siltstone DAILY ACTIVITY SUMMARY Displace o waer base; clean out from under shakers. Rotary drilling w/ 2155 GPM, 1050 PP. Circulate and conition BTTMS up. Formation integrity test fit; rig to test and get air out of system. Pressure up to 464 PSI and held for 14 minutes; Bleed off to 417=13.9 MDWT. Displace water base, clean pit 4 for new mud, and load mud. Rotary drill from 2135'-2382' MD. Rotary drill from 2382'-2563' MD. Rotary drill from 2563'-2957' MD. Circulate and condition; 600 units of gas @ 2957' MD. Rotary drill from 2957'-3240' MD. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710.00 REPORT BY Britten Adams Page 1 of 1Daily Report 3/13/2013 file://C:\DOCUMENTS AND SETTINGS\EPOCHADMIN\MY DOCUMENTS\MY WE ... C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 16 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Mar 14, 2013 DEPTH 4481' PRESENT OPERATION Short trip to 2120' TIME 04:00:00 YESTERDAY 3152' 24 HOUR FOOTAGE 1329' CASING INFORMATION 20" Cond @ 113' MD 13 3/8" Surface casing @ 2120' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4027.94 18.87 172.11 3959.87 4121.74 18.77 172.64 4048.65 4216.79 20.16 163.99 4138.29 4311.53 20.02 166.15 4227.26 4407.10 19.93 165.04 4317.09 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1036.7 @ 3333.00000 1.6 @ 3691.00000 128.7 0.00000 FT/HR SURFACE TORQUE 9887 @ 4310.00000 13 @ 3705.00000 6222.2 0.00000 AMPS WEIGHT ON BIT 40 @ 4159.00000 0 @ 3336.00000 18.9 0.00000 KLBS ROTARY RPM 71 @ 4053.00000 0 @ 3711.00000 55.7 0.00000 RPM PUMP PRESSURE 2388 @ 4333.00000 1319 @ 3211.00000 1835.2 0.00000 PSI DRILLING FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL 2135' TO 4481' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1169 @ 4207.00000 0 @ 3854.00000 158.4 TRIP GAS N/A CUTTING GAS 0 @ 4481.00000 0 @ 4481.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 62949 @ 4207.00000 43 @ 3854.00000 11947.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 9081 @ 4305.00000 3 @ 3329.00000 1496.7 AVG 164 PROPANE (C-3) 6823 @ 4305.00000 2 @ 3329.00000 1064.3 CURRENT 0 BUTANE (C-4) 4896 @ 4305.00000 1 @ 3329.00000 754.5 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 3633 @ 4305.00000 0 @ 3645.00000 502.3 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4170-4440 Sandstone w/ claystone 789 units Slight to moderate oil show w/ weak odor, pale yellow sample fluor, moderate bright cut fluor. LITHOLOGY Dominant Sandstone with some claystone and siltstone PRESENT LITHOLOGY 50% Claystone, 40% sandstone, 10% sand DAILY ACTIVITY SUMMARY Slide drilling from 3150' to 3435'. Rotary drilling from 3435' to 4481'. Circulate and condition, recipricate bit between 4481' and 4380'. Begin short trip to 2120'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Ackers, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/14/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #17 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Garland Goodwyn, Larry Burns DATE Mar 15, 2013 DEPTH 5165' PRESENT OPERATION Drilling Ahead TIME 04:00:00 YESTERDAY 4481' 24 HOUR FOOTAGE 684' CASING INFORMATION 20" Cond @ 113' MD Surface casing @ 2120' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4692.55 19.92 173.18 4585.57 4787.01 19.98 173.19 4674.36 4882.31 20.03 171.70 4763.90 4978.15 20.11 173.86 4853.93 5074.84 19.81 173.96 4944.81 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 307.0 @ 5143.00000 1.0 @ 4621.00000 100.3 134.68756 FT/HR SURFACE TORQUE 14694 @ 4522.00000 13 @ 4578.00000 8103.8 10557.60156 AMPS WEIGHT ON BIT 43 @ 4691.00000 2 @ 5142.00000 26.7 23.70433 KLBS ROTARY RPM 81 @ 5142.00000 0 @ 4625.00000 64.9 71.44448 RPM PUMP PRESSURE 2622 @ 5157.00000 1871 @ 4574.00000 2313.1 2499.95337 PSI DRILLING FLUIDS REPORT DEPTH 4920' MW 10.2 VIS 54 PV 20 YP 26 FL 6 Gels 7/9/15 CL- 30000 FC 2/0 SOL 8.1 SD 0.30 OIL 0.4/90.0 MBT 7.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL 2135' TO 5165' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 351 @ 4492.00000 5 @ 4509.00000 124.2 TRIP GAS 367 CUTTING GAS 0 @ 5165.00000 0 @ 5165.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 33300 @ 4556.00000 425 @ 4509.00000 12709.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 4851 @ 4556.00000 63 @ 4509.00000 1416.9 AVG 124 PROPANE (C-3) 3850 @ 4556.00000 48 @ 4509.00000 1033.3 CURRENT 10 BUTANE (C-4) 2874 @ 4556.00000 34 @ 4509.00000 797.6 CURRENT BACKGROUND/AVG 30 PENTANE (C-5) 2320 @ 4529.00000 30 @ 4509.00000 609.8 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 90% Claystone, 10% Sandstone PRESENT LITHOLOGY 90% Claystone, 10% Sandstone DAILY ACTIVITY SUMMARY Short trip to 2120', work tight spots. Pump sweep into shoe, service top drive. Trip into hole to 4350', ream from 4350' to 4481'. Rotary drilling from 4481' to 5165'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/15/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 18 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Stanley Calvin DATE Mar 16, 2013 DEPTH 6630' PRESENT OPERATION Drilling Ahead TIME 04:00:00 YESTERDAY 5165' 24 HOUR FOOTAGE 1465' CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6210.19 18.95 171.26 6017.80 6304.07 18.92 171.40 6106.11 6398.75 19.17 171.75 6195.61 6494.95 19.47 174.17 6286.39 6586.47 19.50 173.72 6372.67 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022' 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 347.0 @ 5527.00000 5.8 @ 6505.00000 100.8 125.51947 FT/HR SURFACE TORQUE 17557 @ 6425.00000 13 @ 6032.00000 8726.8 10371.78809 AMPS WEIGHT ON BIT 55 @ 6400.00000 4 @ 5713.00000 25.5 28.86239 KLBS ROTARY RPM 90 @ 5703.00000 0 @ 6511.00000 65.7 71.44448 RPM PUMP PRESSURE 2928 @ 5528.00000 2124 @ 5718.00000 2482.8 2694.68237 PSI DRILLING FLUIDS REPORT DEPTH 4920' MW 10.20 VIS 54 PV 20 YP 26 FL 6 Gels 7/9/15 CL- 30000 FC 2/0 SOL 8.1 SD 0.30 OIL 0.4/90.0 MBT 7.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL 2135' TO 6630' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 270 @ 6518.00000 0 @ 6504.00000 99.4 TRIP GAS N/A CUTTING GAS 0 @ 6630.00000 0 @ 6630.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 29428 @ 5713.00000 55 @ 6370.00000 10504.4 CONNECTION GAS HIGH 0 ETHANE (C-2) 3492 @ 5713.00000 4 @ 6371.00000 1012.5 AVG 99 PROPANE (C-3) 2662 @ 5636.00000 3 @ 6504.00000 713.3 CURRENT 175 BUTANE (C-4) 1152 @ 5713.00000 1 @ 6504.00000 353.3 CURRENT BACKGROUND/AVG 45 PENTANE (C-5) 1126 @ 5636.00000 0 @ 6228.00000 210.8 HYDROCARBON SHOWS Trace to weak INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 5190-5270 5370-5580 Sandstone Spotty yellow fluor, trace petrol odor and fast yellow to white streamers when crushed. LITHOLOGY Primarily claystone with siltstone and sandstone. 60% - 80% shale and carbonaceous shale from 6420 to present. PRESENT LITHOLOGY 40% Carbonaceous shale, 20% shale, 30% claystone, 10% silstone DAILY ACTIVITY SUMMARY Drilling ahead from 5165' to 6630'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/16/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #19 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Stanley Calvin DATE Mar 17, 2013 DEPTH 6925' PRESENT OPERATION Tripping out of hole to surface for coring TIME 04:00:00 YESTERDAY 6630' 24 HOUR FOOTAGE 295 CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6586.47 19.50 173.72 6372.67 6682.68 18.89 172.44 6463.53 6779.37 18.82 171.88 6555.04 6799.72 19.04 172.27 6574.30 6851.20 19.32 170.85 6622.93 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022" 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 243.4 @ 6665.00000 10.4 @ 6786.00000 94.1 0.00000 FT/HR SURFACE TORQUE 12581 @ 6814.00000 15 @ 6797.00000 8341.7 6490.11670 AMPS WEIGHT ON BIT 35 @ 6651.00000 3 @ 6853.00000 23.3 11.03674 KLBS ROTARY RPM 84 @ 6820.00000 0 @ 6804.00000 66.5 75.50763 RPM PUMP PRESSURE 2898 @ 6721.00000 2177 @ 6925.00000 2548.5 2177.04810 PSI DRILLING FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL 2135' TO 6925' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 211 @ 6707.00000 0 @ 6823.00000 97.5 TRIP GAS N/A CUTTING GAS 0 @ 6925.00000 0 @ 6925.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 21992 @ 6829.00000 64 @ 6823.00000 9643.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 1715 @ 6829.00000 3 @ 6796.00000 807.1 AVG 97 PROPANE (C-3) 1440 @ 6829.00000 3 @ 6796.00000 600.0 CURRENT 0 BUTANE (C-4) 774 @ 6829.00000 2 @ 6667.00000 287.1 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 353 @ 6829.00000 0 @ 6667.00000 107.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Shale with some carbonaceous shale, claystone, conglomerate sand and siltstone. PRESENT LITHOLOGY 70% Shale, 10% carbonaceous shale, 10% claystone, 10% conglomerate sand. DAILY ACTIVITY SUMMARY Rotary drilling from 6630' to 6825'. Circulate bottoms up for geologist examination. Continue to repeat 10' to 20' drilling and then circulate up cuttings for examination until TD for coring at 6925'. Begin to trip out of hole to surface. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/17/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #20 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Stanley Calvin DATE Mar 18, 2013 DEPTH 6925' PRESENT OPERATION Tripping out of hole to surface for coring TIME 04:00:00 YESTERDAY 6925' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' 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 16" Hughes 5213496 1x12, 3x14 113' 2135' 2022" 44.12 2-3-LN-N-3-X-PN-TD Casing TD 2 12.25" NOV E170846 5x12 2135' 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 FLUIDS REPORT DEPTH 6925' MW 10.4 VIS 74 PV 19 YP 32 FL 6 Gels 11/24/35 CL- 32000 FC 2/0 SOL 11.4 SD 0.75 OIL 1.0/86.0 MBT 12.5 pH 9.3 Ca+ 40 CCI MWD SUMMARY INTERVAL 2135' TO 6925' TOOLS Gamma, Resistivity, Mudmotor 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 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Trip out of hole and back ream. Wipe each stand after back ream. Abnormal high torque from 4945' to 4766'. Pick up through tight spots without torque or overpull. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/18/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #21 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 19, 2013 DEPTH 6925' PRESENT OPERATION Tripping into hole with core bit TIME 04:00:00 YESTERDAY 6925' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' 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 2 12.25" NOV E170846 5x12 2135' 6925' 4790' 51.1 I-I-CT-C-X-X-NO-CP Core Zone TD 3 8.5" HTC Coring Bit 7138396 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 FLUIDS REPORT DEPTH 6925' MW 10.45 VIS 72 PV 23 YP 28 FL 6 Gels 13/37/57 CL- 30000 FC 2 SOL 10.8 SD 0.5 OIL 1.0/86.0 MBT 12.5 pH 9.1 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Trip out of hole, lay down BHA. Pick up test tools, test BOPs. Lay down test tools, pick up BHA. Trip into hole with core BBL assembly. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/19/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report #22 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 20, 2013 DEPTH 6937' PRESENT OPERATION Core drill TIME 04:00:00 YESTERDAY 6925' 24 HOUR FOOTAGE 12' CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' 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 2 12.25" NOV E170846 5x12 2135' 6925' 4805' 52.82 I-I-CT-C-X-X-NO-CP Core Zone TD 3 8.5" HTC Coring Bit 7138396 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 53.0 @ 6925.00000 0.2 @ 6937.00000 9.3 0.16782 FT/HR SURFACE TORQUE 6851 @ 6926.00000 4740 @ 6932.00000 5650.6 4832.08545 AMPS WEIGHT ON BIT 17 @ 6926.00000 9 @ 6927.00000 15.5 12.06454 KLBS ROTARY RPM 92 @ 6937.00000 15 @ 6926.00000 68.4 92.73540 RPM PUMP PRESSURE 2177 @ 6925.00000 543 @ 6926.00000 921.7 730.13690 PSI DRILLING FLUIDS REPORT DEPTH 6935'/6935' MW 10.40 VIS 70 PV 21 YP 25 FL 5.8 Gels 14/29/36 CL- 31000 FC 2/2 SOL 13.0 SD 0.50 OIL 0.5/85.0 MBT 12.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 72 @ 6925.00000 12 @ 6935.00000 16.5 TRIP GAS 1432 CUTTING GAS 0 @ 6937.00000 0 @ 6937.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 9348 @ 6925.00000 1624 @ 6935.00000 1909.6 CONNECTION GAS HIGH N/A ETHANE (C-2) 706 @ 6925.00000 128 @ 6935.00000 151.2 AVG 14 PROPANE (C-3) 661 @ 6925.00000 131 @ 6933.00000 146.4 CURRENT 15 BUTANE (C-4) 356 @ 6925.00000 65 @ 6935.00000 77.9 CURRENT BACKGROUND/AVG 15 PENTANE (C-5) 122 @ 6925.00000 29 @ 6930.00000 34.1 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Cuttings too inconsistant to log, will log from core. PRESENT LITHOLOGY Cuttings too inconsistant to log, will log from core. DAILY ACTIVITY SUMMARY Trip into hole, circulate and condition. Core drill from 6925' to 6937'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/20/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 23 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 21, 2013 DEPTH 6970' PRESENT OPERATION Core Drill TIME 03:30:58 YESTERDAY 6937' 24 HOUR FOOTAGE 33' CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 2 12.25" NOV E170846 5x12 2135' 6925' 4805' 52.82 I-I-CT-C-X-X-NO-CP Core Zone TD 3 8.5" HTC Coring Bit 7138396 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 5.2 @ 6940.00000 0.2 @ 6937.00000 1.6 1.11180 FT/HR SURFACE TORQUE 5426 @ 6957.00000 4035 @ 6941.00000 5092.5 5021.98291 AMPS WEIGHT ON BIT 24 @ 6955.00000 12 @ 6937.00000 21.6 23.34392 KLBS ROTARY RPM 92 @ 6937.00000 68 @ 6962.00000 73.3 69.45354 RPM PUMP PRESSURE 942 @ 6957.00000 730 @ 6937.00000 893.8 896.51935 PSI DRILLING FLUIDS REPORT DEPTH 6965'/6900' MW 10.4 VIS 70 PV 21 YP 29 FL 5.8 Gels 11/28/40 CL- 30000 FC 2/2 SOL 12 SD 0.80 OIL 0.5/86.0 MBT 15.0 pH 9.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 32 @ 6954.00000 2 @ 6962.00000 17.8 TRIP GAS N/A CUTTING GAS 0 @ 6970.00000 0 @ 6970.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 4357 @ 6954.00000 277 @ 6962.00000 2462.5 CONNECTION GAS HIGH N/A ETHANE (C-2) 260 @ 6954.00000 15 @ 6962.00000 143.1 AVG 18 PROPANE (C-3) 203 @ 6954.00000 13 @ 6962.00000 124.2 CURRENT 18.5 BUTANE (C-4) 163 @ 6954.00000 7 @ 6962.00000 74.4 CURRENT BACKGROUND/AVG 18 PENTANE (C-5) 60 @ 6943.00000 2 @ 6962.00000 31.9 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Cuttings to inconsistant to log, will log from core. PRESENT LITHOLOGY Cuttings to inconsistant to log, will log from core. DAILY ACTIVITY SUMMARY Core drill from 6937' to 6970'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Keely Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/21/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging #24 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 22, 2013 DEPTH 6978' PRESENT OPERATION Lay down core barrel, recover core. TIME 04:00:00 YESTERDAY 6970' 24 HOUR FOOTAGE 8' CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' MD 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 2 12.25" NOV E170846 5x12 2135' 6925' 4805' 52.82 I-I-CT-C-X-X-NO-CP Core Zone TD 3 8.5" HTC Coring Bit 7138386 6925' 6978' 53' Finished Core DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 4.0 @ 6977.00000 0.9 @ 6971.00000 2.0 1.74959 FT/HR SURFACE TORQUE 5818 @ 6976.00000 4919 @ 6971.00000 5822.8 5017.89893 AMPS WEIGHT ON BIT 24 @ 6973.00000 21 @ 6976.00000 25.9 22.88880 KLBS ROTARY RPM 70 @ 6971.00000 68 @ 6976.00000 78.2 69.35196 RPM PUMP PRESSURE 969 @ 6971.00000 896 @ 6970.00000 1063.9 950.74768 PSI DRILLING MUD REPORT DEPTH 6978'/6742' MW 10.40 VIS 81 PV 24 YP 28 FL 5.0 Gels 9/22/33 CL- 29000 FC 2/2 SOL 11.9 SD 0.90 OIL 1.0/85.0 MBL 15.0 pH 9.5 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 22 @ 6971.00000 10 @ 6972.00000 18.0 TRIP GAS N/A CUTTING GAS 0 @ 6978.00000 0 @ 6978.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 3010 @ 6971.00000 1366 @ 6972.00000 2454.8 CONNECTION GAS HIGH N/A ETHANE (C-2) 164 @ 6971.00000 74 @ 6972.00000 133.2 AVG 18 PROPANE (C-3) 145 @ 6971.00000 66 @ 6972.00000 118.1 CURRENT 20 BUTANE (C-4) 86 @ 6971.00000 37 @ 6972.00000 62.6 CURRENT BACKGROUND/AVG 18 PENTANE (C-5) 49 @ 6978.00000 12 @ 6972.00000 30.2 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% sandstone, 20% shale, 20% siltstone, 10% claystone PRESENT LITHOLOGY 50% sandstone, 20% shale, 20% siltstone, 10% claystone DAILY ACTIVITY SUMMARY Core drill from 6970' to 6978'. Circulate and condition hole. Trip out of hole to surface. Lay down BHA and core barrel, recover core. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/22/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 25 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 23, 2013 DEPTH 6925' PRESENT OPERATION Begin drill ahead from 6925'. TIME 04:00:00 YESTERDAY 6925' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' Surface Casing @ 2120' MD 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 3 8.5" HTC Coring Bit 7138386 6925' 6978' 53' 42.3 X-X-X-X-X-X-XX-TD Finished Core 4 12.25 REED PDC E169434 5x12 6925' 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 6925'/6692' MW 10.45 VIS 81 PV 19 YP 31 FL 4.0 Gels 9/19/32 CL- 38000 FC 2/2 SOL 9.1 SD 1.00 OIL 1.0/88.0 MBL 10.0 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL 6925' TO 6925' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 171 CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ AVG 10 PROPANE (C-3) @ @ CURRENT 10 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 10 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pick up BHA, Trip into hole. Circulate and condition. Ream, wash tight sections. Tight hole from 6880' to 6925'. Circulate and condition, pump sweep. Begin drill ahead from 6925'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist. Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/23/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 26 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 24, 2013 DEPTH 7500' PRESENT OPERATION Tripping out of hole. TIME 04:00:00 YESTERDAY 6925' 24 HOUR FOOTAGE 575' CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7159.12 19.96 171.58 6912.84 7254.68 19.88 172.34 7002.68 7350.54 19.93 170.38 7092.82 7426.02 19.82 170.67 7163.81 7500.00 19.82 170.67 7233.40 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 210.9 @ 7255.00000 0.8 @ 6926.00000 78.5 29.41000 FT/HR SURFACE TORQUE 13303 @ 7464.00000 6490 @ 6925.00000 10426.5 11571.45600 AMPS WEIGHT ON BIT 31 @ 7386.00000 2 @ 7426.00000 20.3 6.39000 KLBS ROTARY RPM 79 @ 7224.00000 43 @ 6931.00000 69.0 69.16800 RPM PUMP PRESSURE 3097 @ 7407.00000 2177 @ 6925.00000 2777.9 2598.96000 PSI DRILLING MUD REPORT DEPTH 7500'/7233' MW 10.40 VIS 67 PV 20 YP 29 FL 4.5 Gels 15/26/35 CL- 45000 FC 2/2 SOL 8.7 SD 0.80 OIL 1.0/88.0 MBL 12.5 pH 9.6 Ca+ 40 CCI MWD SUMMARY INTERVAL 6925' TO 7500' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 140 @ 7006.00000 1 @ 6930.00000 60.0 TRIP GAS N/A CUTTING GAS 0 @ 7500.00000 0 @ 7500.00000 0.0 WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) 19866 @ 7006.00000 110 @ 7262.00000 7023.2 CONNECTION GAS HIGH N/A ETHANE (C-2) 1180 @ 7024.00000 9 @ 7262.00000 432.9 AVG 60 PROPANE (C-3) 1071 @ 7012.00000 9 @ 6930.00000 446.8 CURRENT 0 BUTANE (C-4) 782 @ 7024.00000 5 @ 6929.00000 352.4 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 529 @ 7315.00000 1 @ 6929.00000 156.6 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6970'-7080' 20%-30% Sandstone, 20%-30% Claystone, 20%-30% Shale, with some silstone 88 Units Average Very slight odor, 65% dark brown stain, amber cut, 90% brown orange fluor, strong yellow cut fluor, moderate bright yellow residual fluor. LITHOLOGY Silstone with claystone, shale, and sandstone. PRESENT LITHOLOGY 50% Silstone, 30% Claystone, 10% shale, 10% sandstone. DAILY ACTIVITY SUMMARY Rotary drilling from 6925' to 7500' TD. Circulate and condition hole, recipricate and rotate at 7500'. Pump out of hole from 7500' to 7234'. Pull out of hole from 7234'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/24/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 27 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 25, 2013 DEPTH 7500' PRESENT OPERATION Lay down BHA TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 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 7500'/7233' MW 10.40 VIS 54 PV 16 YP 15 FL 4.0 Gels 5/9/14 CL- 40000 FC 1/2 SOL 6.9 SD 0.60 OIL 1.0/89.0 MBL 12.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL 6925' TO 7500' TOOLS Gamma, Resistivity, Mudmotor GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Trip out of hole, back ream out of hole. Service rig and top drive. Trip into hole from shoe to 7500'. Wash and ream tight spot from 4347' to 4358'. Circulate and condition. Trip out of hole, lay down BHA. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/25/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 28 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 26, 2013 DEPTH 7500' PRESENT OPERATION Pull out of hole with wireline tools TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 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 7500'/7233' MW 10.40 VIS 60 PV 17 YP 20 FL 4.0 Gels 8/0/0 CL- 40000 FC 1/2 SOL 7.9 SD 0.50 OIL 1.0/88.0 MBL 10.0 pH 9.0 Ca+ 40 CCI MWD SUMMARY INTERVAL 7500' TO 7500' TOOLS Wireline Tools GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Lay down BHA. Test BOPs. Pick up wireline tools and run in hole. Log with wireline tools. Pulling out of hole with wireline tools. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/26/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 29 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 27, 2013 DEPTH 7500' PRESENT OPERATION Log with run #3 wireline tools. TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 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 7500'/7233' MW 10.40 VIS 55 PV 17 YP 18 FL 5.0 Gels 6/11/21 CL- 38000 FC 1/2 SOL 8.1 SD 0.25 OIL 1.0/88.0 MBL 12.5 pH 8.4 Ca+ 40 CCI MWD SUMMARY INTERVAL 7500' TO 7500' TOOLS Run #3 Wireline Tools GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pull out of hole and lay down wireline tools for run #1. Pick up wireline logging tools for run #2. Run into hole, log run #2. Pull out of hole, lay down run #2 wireline tools. Pick up and run into hole with run #3 wireline tools. Log with run #3 wireline tools. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/27/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 30 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 28, 2013 DEPTH 7500' PRESENT OPERATION Lay down run #5 tool string TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-NO-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 9.6 1-1-CT-S-X-I-NO-TD TD 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 7500'/7233' MW 10.40 VIS 59 PV 19 YP 22 FL 5.0 Gels 8/15/24 CL- 36000 FC 2/2 SOL 8.2 SD 0.30 OIL 1.0/88.0 MBL 12.5 pH 9.2 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Log with #3 tool string. Pull out of hole and lay down tools. Pick up and run into hole with #4 tool string. Collect side wall core samples. Pull out of hole, lay down #4 tool string. Pick up, run into hole with #5 tool string. Log with seismic tools. Pull of hole and lay down run #5 tool string. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/28/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 31 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 29, 2013 DEPTH 7500' PRESENT OPERATION Prepare for cement job TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-NO-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 9.6 1-1-CT-S-X-I-NO-TD TD 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 7500'/7233' MW 10.40 VIS 61 PV 18 YP 24 FL 5.0 Gels 9/16/22 CL- 34000 FC 2/2 SOL 8.9 SD 0.10 OIL 1.0/87.5 MBL 12.0 pH 9.3 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 1136 CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH N/A ETHANE (C-2) @ @ AVG 10 PROPANE (C-3) @ @ CURRENT 1 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pull out of hole and lay down tool string #5. Service top drive. Run into hole to 2085'. Circulate and condition, service rig. Run into hole to 5495', circulate and condition. Run into hole to 7495', circulate and condition. Prepare for cement job. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/29/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 32 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 30, 2013 DEPTH 7500' PRESENT OPERATION Run singles into hole to 3434' TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-NO-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 9.6 1-1-CT-S-X-I-NO-TD TD 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 7500'/7233' MW 10.40 VIS 63 PV 19 YP 18 FL 5.2 Gels 6/19/24 CL- 34000 FC 2/2 SOL 8.4 SD 0.05 OIL 1.0/88.0 MBT 14.0 pH 11.5 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pump and circulate cement to 7495'. Trip out of hole to 6630', circulate and condition. Trip in hole, tag cement plug at 6852'. Trip out of hole to 4600', pump cement plug. Trip out of hole to 3417'. Circulate and condition, Trip out of hole to 1711'. Service top drive, pick up drill pipe, run singles into hole to 3434'. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/31/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlogging Report # 33 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE Mar 31, 2013 DEPTH 7500' PRESENT OPERATION Waiting on cement TIME 04:00:00 YESTERDAY 7500' 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD Surface Casing @ 2120' MD 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 3 8.5" Baker 7138396 6925' 6978' 53' 42.5 1-1-NO-X-I-X-NO-TD Finished core 4 12.25" REED PDC E169434 5x12 6925' 7500' 575' 9.6 1-1-CT-S-X-I-NO-TD TD 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 7500'/7233' MW 10.40 VIS 56 PV 15 YP 17 FL 6.5 Gels 4/13/20 CL- 29000 FC 2/2 SOL 11.1 SD 0.03 OIL 0.5/87.0 MBL 12.0 pH 11.6 Ca+ 340 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Released Canrig sample sets 1, 4, and 6 to expeditor for shipment on 3/30/2013. Circulate and condition, trip in hole to 4010'. No hard cement encountered, pull out of hole to 3992', circulate and condition. Trip in hole to 4060', no hard cement. Pull out of hole to 4010'. Circulate and condition. Trip in hole to 4214'. Pump cement, trip out of hole to 3614'. Cement in place at midnight. Trip out of hole to 3051', circulate and condition. Waiting on cement. CANRIG PERSONNEL ON BOARD Daniel Hillegeist, Levi Potter, Britten Adams, Doug Acker, Ben Handley, Kelly Childers DAILY COST $5710 REPORT BY Daniel Hillegeist Page 1 of 1Daily Report 3/31/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #34 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE April 1, 2013 DEPTH 7550.00000 PRESENT OPERATION Test BOP TIME 04:00:00 YESTERDAY 10.00000 24 HOUR FOOTAGE 7540 CASING INFORMATION 20" Cond @ 113' MD 13 3/8" @ 2120' 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 4 12.25 Hughes VM3 5221024 3x18, 1x16 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0.0 @ 7550.00000 0 @ 7550.00000 0.0 FT/HR SURFACE TORQUE 0 @ 7550.00000 0 @ 7550.00000 0.0 AMPS WEIGHT ON BIT 0 @ 7550.00000 0 @ 7550.00000 0.0 KLBS ROTARY RPM 0 @ 7550.00000 0 @ 7550.00000 0.0 RPM PUMP PRESSURE 0 @ 7550.00000 0 @ 7550.00000 0.0 PSI DRILLING MUD REPORT DEPTH 7500 MW 10.40 VIS 52 PV 13 YP 15 FL 6.3 Gels 4/8/18 CL- 28000 FC 2/2 SOL 11.1 SD 0.08 OIL 0.5/87 MBL 9.5 pH 11.5 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 7550.00000 0 @ 7550.00000 0.0 TRIP GAS CUTTING GAS 0 @ 7550.00000 0 @ 7550.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 7550.00000 0 @ 7550.00000 0.0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 7550.00000 0 @ 7550.00000 0.0 AVG PROPANE (C-3) 0 @ 7550.00000 0 @ 7550.00000 0.0 CURRENT BUTANE (C-4) 0 @ 7550.00000 0 @ 7550.00000 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 7550.00000 0 @ 7550.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Trip out of hole curculating and conditioning hole (displace contaminated mud). Tag cement plug at 3501'. Set cement plug at 3166' and 2255'. POOH CANRIG PERSONNEL ON BOARD Ben Handley, Doug Acker, Levi Potter, Britten Adams, Dan Hillegeist, Kelly Childers, Omar hinostroza DAILY COST 5710 REPORT BY Levi Potter Page 1 of 1Daily Report 4/1/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #35 DAILY WELLSITE REPORT Qugruk-3 REPORT FOR Rodney McCoy, Larry Burns DATE April 2, 2013 DEPTH 7550.0 PRESENT OPERATION Drilling Side Track TIME 04:00:00 YESTERDAY 7550.0 24 HOUR FOOTAGE 0 CASING INFORMATION 20" Cond @ 113' MD 13 3/8" @ 2120' 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 4 12.25 Hughes VM3 5221024 3x18, 1x16 2120 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 0.0 @ 7550.00000 0 @ 7550.00000 0.0 FT/HR SURFACE TORQUE 0 @ 7550.00000 0 @ 7550.00000 0.0 AMPS WEIGHT ON BIT 0 @ 7550.00000 0 @ 7550.00000 0.0 KLBS ROTARY RPM 0 @ 7550.00000 0 @ 7550.00000 0.0 RPM PUMP PRESSURE 0 @ 7550.00000 0 @ 7550.00000 0.0 PSI DRILLING MUD REPORT DEPTH 7500 MW 10.45 VIS 56 PV 20 YP 16 FL 6.4 Gels 6/12/24 CL- 33000 FC 2/2 SOL 10.4 SD 0.09 OIL 1.0/87 MBL 12 pH 10.3 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 7550.00000 0 @ 7550.00000 0.0 TRIP GAS CUTTING GAS 0 @ 7550.00000 0 @ 7550.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ 7550.00000 0 @ 7550.00000 0.0 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 7550.00000 0 @ 7550.00000 0.0 AVG PROPANE (C-3) 0 @ 7550.00000 0 @ 7550.00000 0.0 CURRENT BUTANE (C-4) 0 @ 7550.00000 0 @ 7550.00000 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 7550.00000 0 @ 7550.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Test BOP, Pick Up BHA for Side track, Trip in hole to 2098', Trip out to 1840' service top drive, Trip in hole to2096' CANRIG PERSONNEL ON BOARD Ben Handley, Doug Acker, Levi Potter, Britten Adams, Dan Hillegeist, Kelly Childers, Omar hinostroza DAILY COST 6110 REPORT BY Levi Potter Page 1 of 1Daily Report 4/2/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Rodney McCoy, Larry Burns DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 03, 2013 DEPTH 2957' PRESENT OPERATION Drilling Sidetrack TIME 03:30:50 YESTERDAY 2690' 24 HOUR FOOTAGE 267 CASING INFORMATION 13 3/8" @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2770 4.79 232.01 2768.40 2800 4.41 250.11 2797.84 2827 4.20 267.01 2824.96 2860 4.24 290.06 2857.88 2901 5.00 316.73 2898.63 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 12.25 Hughes VM3 5221024 3x18, 1x16 2120 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 581.9 @ 2797.00000 0.6 @ 2920.00000 55.6 53.07078 FT/HR SURFACE TORQUE 6404 @ 2792.00000 -37 @ 2708.00000 1653.8 3329.23926 AMPS WEIGHT ON BIT 33 @ 2928.00000 0 @ 2708.00000 17.6 15.24662 KLBS ROTARY RPM 50 @ 2690.00000 0 @ 2698.00000 11.3 27.64371 RPM PUMP PRESSURE 1520 @ 2690.00000 257 @ 2691.00000 1177.7 1216.95972 PSI DRILLING MUD REPORT DEPTH MW 10.4 VIS 68 PV 21 YP 20 FL 5.9 Gels 7/18/25 CL- 31000 FC 31000 SOL 2 SD 8.1 OIL 0.05 MBL 1.0/88.5 pH 7.5 Ca+ 10.1 CCI MWD SUMMARY INTERVAL 2120 TO 2957 TOOLS Survey tools, No LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 373 @ 2793.00000 9 @ 2701.00000 133.9 TRIP GAS CUTTING GAS 0 @ 2957.00000 0 @ 2957.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 2434u METHANE (C-1) 56207 @ 2787.00000 1573 @ 2701.00000 15239.3 CONNECTION GAS HIGH 681u ETHANE (C-2) 6520 @ 2793.00000 137 @ 2701.00000 1485.7 AVG PROPANE (C-3) 5614 @ 2793.00000 94 @ 2855.00000 1170.3 CURRENT BUTANE (C-4) 1991 @ 2793.00000 29 @ 2855.00000 465.6 CURRENT BACKGROUND/AVG 151u PENTANE (C-5) 402 @ 2793.00000 6 @ 2701.00000 106.3 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Siltstone with interbedded claystone and Sandstone PRESENT LITHOLOGY 40% Sandstone, 10% Sand, 20% Siltstone, 30% Claystone DAILY ACTIVITY SUMMARY Trip in hole from 2096' to 2661' Washing and Reaming. Slide drilling and directional work to 2855" Midnight Depth. Tentative Kickoff estimate at 2690' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Britten Adams, Kelly Childers, Dylan Muller, Omar, Hinostroza DAILY COST $6160 REPORT BY Levi Potter Page 1 of 1Daily Report 4/3/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #37 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE Apr 04, 2013 DEPTH 3024.00000 PRESENT OPERATION Drilling TIME 03:48:34 YESTERDAY 2957.00000 24 HOUR FOOTAGE 67 CASING INFORMATION 13 3/8" @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 2827.22 4.20 267.01 2824.96 2860.22 4.24 290.06 2857.88 2901.10 5.00 316.73 2898.63 2932.09 5.61 334.77 2929.49 2969.78 7.12 338.31 2966.94 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 12.25" Hughes VM3 5221024 3x18, 1x16 2120' 2990' 0-0-NO-A-E-I-NO Kickoff TD 5 8.5" Reed RSX519M-A3 112887 5x11, 2x10 2990' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 151.9 @ 2996.00000 5.5 @ 2958.00000 79.1 98.27488 FT/HR SURFACE TORQUE 5563 @ 2990.00000 105 @ 2970.00000 2612.1 3192.43115 AMPS WEIGHT ON BIT 37 @ 2970.00000 1 @ 2991.00000 16.2 10.16442 KLBS ROTARY RPM 66 @ 2991.00000 0 @ 2970.00000 35.6 56.75619 RPM PUMP PRESSURE 1762 @ 3017.00000 1154 @ 2958.00000 1493.3 1741.57800 PSI DRILLING MUD REPORT DEPTH MW 10.45 VIS 58 PV 17 YP 17 FL 5.9 Gels 5/11/19 CL- 29000 FC 2 SOL 8.8 SD 0.07 OIL 1.0/88.0 MBL 7.5 pH 10.6 Ca+ 400 CCI MWD SUMMARY INTERVAL 2990' TO 3024' TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 148 @ 2970.00000 55 @ 3006.00000 93.3 TRIP GAS CUTTING GAS 0 @ 3024.00000 0 @ 3024.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 18681 @ 2970.00000 7008 @ 3001.00000 11791.6 CONNECTION GAS HIGH ETHANE (C-2) 1418 @ 2970.00000 520 @ 3006.00000 886.1 AVG PROPANE (C-3) 1032 @ 2970.00000 482 @ 3006.00000 713.1 CURRENT BUTANE (C-4) 489 @ 2970.00000 206 @ 2998.00000 326.6 CURRENT BACKGROUND/AVG PENTANE (C-5) 191 @ 2990.00000 108 @ 2992.00000 143.5 HYDROCARBON SHOWS None INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sitstone and Sandstone with less common claystone PRESENT LITHOLOGY 50% Siltstone, 40% Sandstone, 10% Claystone DAILY ACTIVITY SUMMARY Drill to 2990’, Circulate bottoms up and condition hole. Trip out of hole. Lay down side track BHA. Clean and clear rig floor, service rig. Pick up BHA with rotary steerable, LWD, and 8.5” bit. Trip in hole. Tight spot at 2677’, wash and ream to 2990’. Commence drilling. CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Britten Adams, Kelly Childers, Dylan Muller, Omar Hinostroza DAILY COST 6160 REPORT BY Levi Potter Page 1 of 1Daily Report 4/6/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #39 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE Apr 06, 2013 DEPTH 6117.00000 PRESENT OPERATION Wiper Trip TIME 19:31:47 YESTERDAY 4697.00000 24 HOUR FOOTAGE 1420 CASING INFORMATION 13 3/8" @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5632.53 60.38 336.08 4665.02 5727.88 60.38 336.78 4712.15 5824.19 60.31 335.69 4759.80 5920.48 60.39 336.69 4807.13 6014.93 60.34 336.83 4854.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 12.25" Hughes VM3 5221024 3x18 1x16 2120' 2990' 870' 0-0-NO-A-E-I-NO TD 5 8.5" Reed RSX51M-A3 112887 5x11 2x10 2990' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 307.3 @ 6028.00000 4.1 @ 5953.00000 133.8 170.31817 FT/HR SURFACE TORQUE 8909 @ 5935.00000 4303 @ 4978.00000 6364.0 7835.73550 AMPS WEIGHT ON BIT 41 @ 5789.00000 8 @ 4978.00000 22.4 21.16323 KLBS ROTARY RPM 145 @ 6007.00000 99 @ 4698.00000 136.0 134.09828 RPM PUMP PRESSURE 2620 @ 5957.00000 1259 @ 5450.00000 2404.7 2483.93136 PSI DRILLING MUD REPORT DEPTH MW 10.45 VIS 68 PV 20 YP 20 FL 6.4 Gels 7/17/24 CL- 28,000 FC 2/2 SOL 10.6 SD 0.05 OIL 1.0/87.0 MBL 14.0 pH 9.9 Ca+ 360 CCI MWD SUMMARY INTERVAL 2990 TO 6117 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 743 @ 4697.00000 7 @ 5586.00000 140.9 TRIP GAS CUTTING GAS 0 @ 6117.00000 0 @ 6117.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 73448 @ 4697.00000 836 @ 5586.00000 15149.9 CONNECTION GAS HIGH ETHANE (C-2) 11912 @ 4697.00000 96 @ 5586.00000 1917.1 AVG PROPANE (C-3) 8589 @ 4697.00000 66 @ 5586.00000 1400.3 CURRENT BUTANE (C-4) 6447 @ 4697.00000 51 @ 5586.00000 1091.8 CURRENT BACKGROUND/AVG PENTANE (C-5) 3387 @ 4697.00000 28 @ 5586.00000 642.3 HYDROCARBON SHOWS Trace to very poor oil indicators. No shows Logged. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sandstone to Siltstone interbedded with Calystone to Trace Shale PRESENT LITHOLOGY 50% Sandstone, 30% Claystone, 10% Shale, Siltstone DAILY ACTIVITY SUMMARY Drill from 4697' to 6117'. Trip out to wipe hole. CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Britten Adams, Kelly Childers, Dylan Muller, Trey Thrailkill DAILY COST 6160 REPORT BY Levi Potter Page 1 of 1Daily Report 4/6/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #41 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley C olvin DATE Apr 07, 2013 DEPTH 8015' PRESENT OPERATION Trip out for BOP test TIME 21:59:03 YESTERDAY 7111' 24 HOUR FOOTAGE 904 CASING INFORMATION 13 3/8" @ 2135' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 7524.47 58.15 338.91 5605.62 7620.69 58.26 339.21 5656.31 7714.32 58.11 338.33 5705.67 7807.93 58.2 339.13 5755.06 7903.28 58.25 338.15 5805.62 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 12.25" Hughes VM3 5221024 3x18 1x16 2120' 2990' 870' 5 8.5" Reed RSX51M-A3 112887 5x11 2x10 2990' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 189.1 @ 7744.00000 5.7 @ 7673.00000 68.4 40.96167 FT/HR SURFACE TORQUE 13640 @ 7642.00000 7643 @ 7308.00000 9399.3 11157.92371 AMPS WEIGHT ON BIT 34 @ 7394.00000 2 @ 8007.00000 23.2 21.79011 KLBS ROTARY RPM 177 @ 7381.00000 130 @ 7566.00000 140.5 139.31943 RPM PUMP PRESSURE 2612 @ 8010.00000 1593 @ 7327.00000 2313.1 2584.99331 PSI DRILLING MUD REPORT DEPTH MW 10.40 VIS 64 PV 17 YP 25 FL 6.5 Gels 11/21/31 CL- 30000 FC 2/2 SOL 10.2 SD 14.0 OIL 1.0/86.5 MBL 14.0 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 203 @ 7694.00000 1 @ 7666.00000 68.8 TRIP GAS CUTTING GAS 0 @ 8015.00000 0 @ 8015.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 27934 @ 7694.00000 204 @ 7666.00000 9527.7 CONNECTION GAS HIGH ETHANE (C-2) 1796 @ 7694.00000 14 @ 7666.00000 645.4 AVG PROPANE (C-3) 1117 @ 7497.00000 7 @ 7666.00000 394.5 CURRENT BUTANE (C-4) 504 @ 7497.00000 3 @ 7666.00000 187.2 CURRENT BACKGROUND/AVG PENTANE (C-5) 277 @ 7694.00000 2 @ 7666.00000 70.5 HYDROCARBON SHOWS Trace INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Shale to Claystone with interbedded siltstone and sandstone PRESENT LITHOLOGY 70% Siltstone, 20% Sandstone, 10% Shale DAILY ACTIVITY SUMMARY Drill form 6967' to 8015'. Trip out for BOP test. CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Britten Adams, Kelly Childers, Dylan Muller, Trey Thrailkill DAILY COST 6160 REPORT BY Levi Potter Page 1 of 1Daily Report 4/9/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #40 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE Apr 07, 2013 DEPTH 7111.00000 PRESENT OPERATION Drilling TIME 03:56:09 YESTERDAY 6117.00000 24 HOUR FOOTAGE 994 CASING INFORMATION 13 3/8" @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6582.23 60.42 335.67 5272.2 6676.54 60.74 334.44 5180.09 6771.14 60.73 336.47 5226.34 6865.00 60.80 337.00 5272.20 6960.60 60.70 337.20 5318.90 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 12.25 Hughes VM3 5221024 3x18 1x16 2120' 2990' 870' 5 8.5 Reed RSX51M-A3 112887 5x11 2x10 2990' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 197.7 @ 6499.00000 12.9 @ 6760.00000 65.0 49.55372 FT/HR SURFACE TORQUE 9834 @ 6505.00000 6077 @ 6199.00000 7549.6 8554.48796 AMPS WEIGHT ON BIT 30 @ 6727.00000 3 @ 6403.00000 21.4 25.60068 KLBS ROTARY RPM 151 @ 6596.00000 103 @ 6310.00000 139.4 141.47290 RPM PUMP PRESSURE 2589 @ 6964.00000 1371 @ 6348.00000 2270.9 2344.66307 PSI DRILLING MUD REPORT DEPTH 6898 MW 10.40 VIS 51 PV 17 YP 23 FL 6.2 Gels 9/19/27 CL- 33,000 FC 2/2 SOL 9.5 SD 0.05 OIL 1.0/87.0 MBL 12.8 pH 9.9 Ca+ 360 CCI MWD SUMMARY INTERVAL 2708 TO 7111 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 96 @ 6381.00000 1 @ 6938.00000 53.9 TRIP GAS CUTTING GAS 0 @ 7111.00000 0 @ 7111.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 13206 @ 6381.00000 212 @ 6938.00000 7252.2 CONNECTION GAS HIGH ETHANE (C-2) 1130 @ 6381.00000 15 @ 6938.00000 569.8 AVG PROPANE (C-3) 734 @ 6381.00000 9 @ 6938.00000 365.3 CURRENT BUTANE (C-4) 397 @ 6381.00000 4 @ 6938.00000 182.1 CURRENT BACKGROUND/AVG PENTANE (C-5) 241 @ 6381.00000 1 @ 6938.00000 104.8 HYDROCARBON SHOWS Trace Oil shows INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Claystone to shale with interbedded siltstone and sandstone PRESENT LITHOLOGY 50% Shale, 40% Claystone, 10% Sandstone DAILY ACTIVITY SUMMARY Wiper Trip, Back ream from 5262' to 3933'. Trip out from 3933' to 2976'. Trip in Hole from 2967' to 6117' Commence drilling. Drill from 6117' to 6967' Midnight Depth, Drill to 7111' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Britten Adams, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 6160' REPORT BY Levi Potter Page 1 of 1Daily Report 4/7/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #42 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanely Colvin DATE Apr 9, 2013 DEPTH 8290 PRESENT OPERATION Drilling ahead TIME 02:28:19 YESTERDAY 8015 24 HOUR FOOTAGE 275 CASING INFORMATION 13 3/8 @ 2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8279.95 58.29 337.70 6003.89 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.2 @ 8290 19.5 @ 8194 116.8 227.22248 FT/HR SURFACE TORQUE 12483 @ 8223 8613 @ 8174 10671.3 12385.11185 AMPS WEIGHT ON BIT 29 @ 8228 9 @ 8016 21.0 29.05203 KLBS ROTARY RPM 152 @ 8040 131 @ 8112 140.1 140.39617 RPM PUMP PRESSURE 2790 @ 8287 1940 @ 8024 2581.5 2760.41384 PSI DRILLING MUD REPORT DEPTH MW 10.4 VIS 78 PV 17 YP 25 FL 6.7 Gels 11/20/32 CL- 28000 FC 2/2 SOL 9.9 SD 0.05 OIL 1.0/87.0 MBL 15 pH 9.0 Ca+ 160 CCI MWD SUMMARY INTERVAL 8015 TO 8290 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 294 @ 8025.00000 24 @ 8151.00000 146.4 TRIP GAS 1227u CUTTING GAS 0 @ 8290.00000 0 @ 8290.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 44634 @ 8025.00000 1903 @ 8151.00000 11038.8 CONNECTION GAS HIGH ETHANE (C-2) 3590 @ 8025.00000 181 @ 8151.00000 962.4 AVG PROPANE (C-3) 2849 @ 8067.00000 150 @ 8151.00000 809.9 CURRENT BUTANE (C-4) 1243 @ 8067.00000 68 @ 8151.00000 359.2 CURRENT BACKGROUND/AVG PENTANE (C-5) 441 @ 8067.00000 26 @ 8151.00000 130.1 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Siltstone dominant with varying amounts of shale and low amounts of sandstone PRESENT LITHOLOGY 70% Siltstone 20% Shale 10% Sand DAILY ACTIVITY SUMMARY Trip in til 2200. Begin rotary drilling at MD 8015' at 2200 to MD 8290' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 6160 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/10/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Report #42 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanely Colvin DATE Apr 9, 2013 DEPTH 8290 PRESENT OPERATION Drilling ahead TIME 02:28:19 YESTERDAY 8015 24 HOUR FOOTAGE 275 CASING INFORMATION 13 3/8 @ 2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8279.95 58.29 337.70 6003.89 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.2 @ 8290 19.5 @ 8194 116.8 227.22248 FT/HR SURFACE TORQUE 12483 @ 8223 8613 @ 8174 10671.3 12385.11185 AMPS WEIGHT ON BIT 29 @ 8228 9 @ 8016 21.0 29.05203 KLBS ROTARY RPM 152 @ 8040 131 @ 8112 140.1 140.39617 RPM PUMP PRESSURE 2790 @ 8287 1940 @ 8024 2581.5 2760.41384 PSI DRILLING MUD REPORT DEPTH MW 10.4 VIS 78 PV 17 YP 25 FL 6.7 Gels 11/20/32 CL- 28000 FC 2/2 SOL 9.9 SD 0.05 OIL 1.0/87.0 MBL 15 pH 9.0 Ca+ 160 CCI MWD SUMMARY INTERVAL 8015 TO 8290 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 294 @ 8025.00000 24 @ 8151.00000 146.4 TRIP GAS 1227u CUTTING GAS 0 @ 8290.00000 0 @ 8290.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 44634 @ 8025.00000 1903 @ 8151.00000 11038.8 CONNECTION GAS HIGH ETHANE (C-2) 3590 @ 8025.00000 181 @ 8151.00000 962.4 AVG PROPANE (C-3) 2849 @ 8067.00000 150 @ 8151.00000 809.9 CURRENT BUTANE (C-4) 1243 @ 8067.00000 68 @ 8151.00000 359.2 CURRENT BACKGROUND/AVG PENTANE (C-5) 441 @ 8067.00000 26 @ 8151.00000 130.1 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Siltstone dominant with varying amounts of shale and low amounts of sandstone PRESENT LITHOLOGY 70% Siltstone 20% Shale 10% Sand DAILY ACTIVITY SUMMARY Trip in til 2200. Begin rotary drilling at MD 8015' at 2200 to MD 8290' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 6160 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/10/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol EPOCH LOGO Mudlog Morning Report #43 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE April 10, 2013 DEPTH 8700 PRESENT OPERATION Drilling ahead TIME 01:35:00 YESTERDAY 8290 24 HOUR FOOTAGE 410 CASING INFORMATION 13 3/8 @2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8564.37 58.23 334.94 6153.6 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.2 @ 8290 24.3 @ 8477 98.9 54.28117 FT/HR SURFACE TORQUE 14059 @ 8385 74 @ 8566 10326.8 10404.45877 AMPS WEIGHT ON BIT 30 @ 8333 1 @ 8567 22.6 22.91025 KLBS ROTARY RPM 151 @ 8631 0 @ 8566 130.8 139.31943 RPM PUMP PRESSURE 2997 @ 8496 643 @ 8566 2616.0 2783.00899 PSI DRILLING MUD REPORT DEPTH MW 10.8+ VIS 62 PV 20 YP 19 FL 5.8 Gels 11/24/31 CL- 52000 FC 2/2 SOL 10.1 SD 0.07 OIL 1.0/85.0 MBL 12.0 pH 9.4 Ca+ 140 CCI MWD SUMMARY INTERVAL 8290 TO 8700 TOOLS MWD + LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 @ 8395 0 @ 8503 27.4 TRIP GAS CUTTING GAS 0 @ 8700 0 @ 8700 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 9269 @ 8395 129 @ 8503 3892.1 CONNECTION GAS HIGH ETHANE (C-2) 678 @ 8395 9 @ 8503 263.4 AVG PROPANE (C-3) 524 @ 8395 7 @ 8503 205.9 CURRENT BUTANE (C-4) 354 @ 8395 4 @ 8503 132.9 CURRENT BACKGROUND/AVG PENTANE (C-5) 158 @ 8396 2 @ 8503 61.3 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Siltstone and sandstone with increasing claystones. Trace shale PRESENT LITHOLOGY 60% Claystone, 30% sandstone, 10% siltstone DAILY ACTIVITY SUMMARY Drilling from 8290' to 8566'. Waiting on Rigwatch to reboot. Continue rotary drilling to 8700'. CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Kelly Childers, Dylan Muller, Trey Thrailkill, , Steve Franzen DAILY COST 6160 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/17/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol EPOCH LOGO Mudlog Morning Report #43 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE April 10, 2013 DEPTH 8700 PRESENT OPERATION Drilling ahead TIME 01:35:00 YESTERDAY 8290 24 HOUR FOOTAGE 410 CASING INFORMATION 13 3/8 @2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8564.37 58.23 334.94 6153.6 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 227.2 @ 8290 24.3 @ 8477 98.9 54.28117 FT/HR SURFACE TORQUE 14059 @ 8385 74 @ 8566 10326.8 10404.45877 AMPS WEIGHT ON BIT 30 @ 8333 1 @ 8567 22.6 22.91025 KLBS ROTARY RPM 151 @ 8631 0 @ 8566 130.8 139.31943 RPM PUMP PRESSURE 2997 @ 8496 643 @ 8566 2616.0 2783.00899 PSI DRILLING MUD REPORT DEPTH MW 10.8+ VIS 62 PV 20 YP 19 FL 5.8 Gels 11/24/31 CL- 52000 FC 2/2 SOL 10.1 SD 0.07 OIL 1.0/85.0 MBL 12.0 pH 9.4 Ca+ 140 CCI MWD SUMMARY INTERVAL 8290 TO 8700 TOOLS MWD + LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 @ 8395 0 @ 8503 27.4 TRIP GAS CUTTING GAS 0 @ 8700 0 @ 8700 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 9269 @ 8395 129 @ 8503 3892.1 CONNECTION GAS HIGH ETHANE (C-2) 678 @ 8395 9 @ 8503 263.4 AVG PROPANE (C-3) 524 @ 8395 7 @ 8503 205.9 CURRENT BUTANE (C-4) 354 @ 8395 4 @ 8503 132.9 CURRENT BACKGROUND/AVG PENTANE (C-5) 158 @ 8396 2 @ 8503 61.3 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Siltstone and sandstone with increasing claystones. Trace shale PRESENT LITHOLOGY 60% Claystone, 30% sandstone, 10% siltstone DAILY ACTIVITY SUMMARY Drilling from 8290' to 8566'. Waiting on Rigwatch to reboot. Continue rotary drilling to 8700'. CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Kelly Childers, Dylan Muller, Trey Thrailkill, , Steve Franzen DAILY COST 6160 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/17/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Morning Report #44 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn DATE Apr 12, 2013 DEPTH 10200 PRESENT OPERATION Drilling ahead TIME 02:51:27 YESTERDAY 8700 24 HOUR FOOTAGE 1500 CASING INFORMATION 13 3/8 @2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10093.77 58.13 338.23 6962.81 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 228.3 @ 10199 12.0 @ 10042 107.0 98.79406 FT/HR SURFACE TORQUE 16830 @ 10038 9461 @ 8923 12445.4 15260.12168 AMPS WEIGHT ON BIT 32 @ 9593 0 @ 10009 19.9 16.72578 KLBS ROTARY RPM 194 @ 8998 113 @ 9916 141.4 142.18395 RPM PUMP PRESSURE 3190 @ 9907 2051 @ 8726 2888.3 2975.27317 PSI DRILLING MUD REPORT DEPTH MW 10.8 VIS 60 PV 19 YP 16 FL 4.9 Gels 9/17/25 CL- 65000 FC 2/2 SOL 8.8 SD 0.05 OIL 1.0/85.3 MBL 12.5 pH 9.4 Ca+ 160 CCI MWD SUMMARY INTERVAL 8700 TO 10200 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1181 @ 9342 20 @ 10186 74.8 TRIP GAS CUTTING GAS 0 @ 10200. 0 @ 10200 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 98558 @ 9342 2133 @ 9444 6556.2 CONNECTION GAS HIGH 1000 ETHANE (C-2) 16948 @ 9342 187 @ 8797 676.1 AVG PROPANE (C-3) 15565 @ 9342 108 @ 8797 516.3 CURRENT BUTANE (C-4) 12169 @ 9343 45 @ 8797 290.7 CURRENT BACKGROUND/AVG PENTANE (C-5) 5350 @ 9343 25 @ 8797 116.6 HYDROCARBON SHOWS 2 shows, see reports INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Claystone, siltstone and sand PRESENT LITHOLOGY 50 clay. 40 siltstone, 10 sand DAILY ACTIVITY SUMMARY Rotary drilling from 8,700' to 9,361'. 19:00 to 21:30, downtime to troubleshoot power generator. Continue drilling ahead to 10,200' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Levi Potter, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 6160 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/12/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Morning Report #45 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE Apr 12, 2013 DEPTH 10546 PRESENT OPERATION Pulling out of hole TIME 03:00 YESTERDAY 10200 24 HOUR FOOTAGE 346 CASING INFORMATION 13 3/8 @2120 SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 10445.7 57.08 337.17 7151.2 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 232.6 @ 10483 0.4 @ 10536 124.8 24.67593 FT/HR SURFACE TORQUE 18474 @ 10487 11147 @ 10445 14611.4 14688.38672 AMPS WEIGHT ON BIT 34 @ 10487 2 @ 10391 24.9 13.53991 KLBS ROTARY RPM 201 @ 10515 129 @ 10487 147.6 142.14333 RPM PUMP PRESSURE 3282 @ 10503 2313 @ 10396 3078.6 3118.64966 PSI DRILLING MUD REPORT DEPTH MW 10.4 VIS 60 PV 24 YP 16 FL 5.5 Gels 6/16/23 CL- 58000 FC 1/2 SOL 9.1 SD 0.05 OIL 1.0/85.5 MBL 12.5 pH 9.5 Ca+ 100 CCI MWD SUMMARY INTERVAL 10200 TO 10546 TOOLS MWD+LWD GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 240 @ 10200 83 @ 10546 126.4 TRIP GAS 1125 CUTTING GAS 0 @ 10546 0 @ 10546 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 24220 @ 10200 7349 @ 10545 11703.6 CONNECTION GAS HIGH 615 ETHANE (C-2) 2330 @ 10200. 572 @ 10545 1128 AVG PROPANE (C-3) 2917 @ 10200 751 @ 10545 1385.2 CURRENT 16 BUTANE (C-4) 2562 @ 10200 677 @ 10545 1211 CURRENT BACKGROUND/AVG 36 PENTANE (C-5) 1381 @ 10200 429 @ 10545 707.8 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Dominant shale/carbonaceous shale with claystone, siltstone and sand. PRESENT LITHOLOGY Shale 30%, Claystone 30%, Siltstone 30% ,Sand 10% DAILY ACTIVITY SUMMARY Rotary drilling from 10,200' to 10,546'. Circulate and condition. Backream to 9,210' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 5710 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/13/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol Mudlog Morning Report # 46 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanley Colvin DATE Apr 14, 2013 DEPTH 10546 PRESENT OPERATION POOH TIME 02:00:00 YESTERDAY 10546 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8 @2120 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 6 8 1/2 Hycalog E157978 7x10 1x11 8015 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.95 VIS 88 PV 20 YP 29 FL 6.0 Gels 15/28/38 CL- 58,000 FC 2/2 SOL 10.4 SD 0.10 OIL 1.0/84.3 MBL 17.5 pH 8.8 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 115 @ 6680 0 @ 50 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT pumps off BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 40 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Back reaming from 9210' to 5448' CANRIG PERSONNEL ON BOARD Doug Acker, Ben Handley, Kelly Childers, Dylan Muller, Trey Thrailkill, Steve Franzen DAILY COST 5710 REPORT BY Trey Thrailkill Page 1 of 1Daily Report 4/14/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE , 4/15/2013 DEPTH 10546' PRESENT OPERATION Circulating Gas TIME 0300 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 6 8 1/2" Hycalog E157978 7x10 1x11 8015' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.9 VIS 76 PV 22 YP 35 FL 8.0 Gels 9/19/32 CL- 55000 FC 2/2 SOL 10.4 SD 0.05 OIL 1.5/84.0 MBL 17.5 pH 8.4 Ca+ 100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 12222 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Finally was able to POOH approx 949' when it was discovered that well was flowing. Shut well in at approx 10:00 hrs, awaited orders, began to trip back in hole aapprox. 21:00 hrs to 3108'. Circulated hole for 4 hours attempting to circulate gas out of mud. Still circulating at time of report. CANRIG PERSONNEL ON BOARD 6 DAILY COST $5710 REPORT BY D. Muller Page 1 of 1Daily Report 4/15/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #48 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR Garland Goodwyn, Stanly Colvin DATE Apr 16, 2013 DEPTH 10546' PRESENT OPERATION Reaming TIME 03:00 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 6 8 1/2" Hycalog E157978 7x10 1x11 8015' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.9 VIS 52 PV 19 YP 25 FL 8.0 Gels 7/18/29 CL- 42000 FC 2/2 SOL 9.9 SD 0.05 OIL 3.0/84.0 MBL 15.0 pH 8.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1515u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Slowly stripping back in hole to get below gas to kill the well. Currently circulating at 2700'. CANRIG PERSONNEL ON BOARD 2 DAILY COST $5710 REPORT BY D. Muller Page 1 of 1Daily Report 4/16/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #50 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 18, 2013 DEPTH 10546.00000 PRESENT OPERATION TIME 03:30:00 YESTERDAY 10546.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 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 6 8.5 Hycalog E157978 7x10 1x11 8015' 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 12.45 VIS 54 PV 20 YP 28 FL 10.0 Gels 7/18/29 CL- 40000 FC 2/2 SOL 16.8 SD 0.05 OIL 3.0/77.5 MBL 12.5 pH 8.0 Ca+ 160 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 311u @ Bit Depth 2706' with MW 12.2/10.95 1197u @ Bit Depth 2706' with MW 12.5/10.45 1351u @ Bit Depth 2706' with MW 12.5/10.65 PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY TRIP IN HOLE SLOWLY T/2707' 14.5BBL LOSS ON TIH. ROTATE DOWNN 25RPM TQ=1K ROT WT=105K UP WT 108 DN WT=95. INCREASED MW TO 12.5. CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/18/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #51 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 19, 2013 DEPTH 10546' PRESENT OPERATION POOH TIME 03:30:00 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 6 8 1/2" Hycalog E157978 7X10 7X11 8015' 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 12.4 VIS 60 PV 21 YP 28 FL 10.0 Gels 10/22/38 CL- 38000 FC 2/2 SOL 16.9 SD 0.05 OIL 3.0/77.5 MBL 12.5 pH 8.0 Ca+ 180 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 455u @ 05:30 Bit Depth 2685' mud weight IN/OUT 12.5/12.2 No other significant gas peaks. DAILY ACTIVITY SUMMARY Trip out of hole from 1922’ to 330. Up weight 45k. Pump out 1 bpm, pull 30 fpm. 25 bbls lost on trip. Trip out of hole and monitor trip tank. CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/19/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #52 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 20, 2013 DEPTH 10546' PRESENT OPERATION TIH TIME 03:30:00 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 6 8 1/2" Hycalog E157978 7x11 1x10 8015' 10546' 2531' TD 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 12.2 VIS 59 PV 20 YP 26 FL 9.5 Gels 8/19/26 CL- 38000 FC 282 SOL 16.4 SD 0.05 OIL 2.0/79.0 MBL 15.0 pH 8.0 Ca+ 160 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 32 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Current gas 32u. 241u at 19:40 hrs mud weight in/out 12.4/12.2 DAILY ACTIVITY SUMMARY Circulate and condition and finish filling pipe. M/u Xo t/5" drill pipe. Run in 1 std drill pipe to 2090’. Increase to 50 down weight 50 stage pumps up to 3bpm=120psi. Rotate 20rpm rotary. Wt=50 tq=500-600ft/lbs. Circ until 12.2ppg in 12.1+ppg out. Working as directed by operator monitor well on trip tank CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/20/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #53 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 20, 2013 DEPTH 10546' PRESENT OPERATION TIH TIME 03:30:00 YESTERDAY 10543' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 11.8 VIS 66 PV 17 YP 20 FL 9.0 Gels 7/16/28 CL- 30000 FC 2/2 SOL 14.9 SD 0.04 OIL 2.0/81.0 MBL 12.5 pH 8.2 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 1800u CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG 150 PROPANE (C-3) @ @ CURRENT 144 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY 1568u @ 22:22 hrs bit depth 2938 mud weight in/out 11.9/12.0 DAILY ACTIVITY SUMMARY Circulate and condition. Cutting mud weight to 11.8 in and out. 2.5bpm=180psi CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/21/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #54 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 21, 2013 DEPTH 10546' PRESENT OPERATION Circulating TIME 03:30:00 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 12.0 VIS 71 PV 21 YP 25 FL 4.8 Gels 8/19/30 CL- 30000 FC 1/2 SOL 14.9 SD 0.08 OIL 2.5/80.5 MBL 10.0 pH 8.3 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 120 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1000 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Gas peak: 1537u @ 2230hrs mud weight in/out 12.0/10.9 DAILY ACTIVITY SUMMARY CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/22/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #55 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 22, 2013 DEPTH 10546' PRESENT OPERATION Circulating TIME 03:30:00 YESTERDAY 10546' 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG 1000 PROPANE (C-3) @ @ CURRENT 825 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Peak gas: 2330u @ 2118hrs bit depth: MD 10514' mud weight in/out 11.8/11.1 PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Circulate and condition mud. 6bpm=900psi. Reciprocate pipe up wt=190 dn wt=125. CANRIG PERSONNEL ON BOARD 2 DAILY COST $3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/23/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #57 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 12, 2013 DEPTH 10546 PRESENT OPERATION Circulating TIME 03:30:0 YESTERDAY 10546 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 12.0 VIS 72 PV 21 YP 29 FL 4.2 Gels 9/19/28 CL- 26000 FC 1/1 SOL 13.9 SD 0.04 OIL 3.0/81.3 MBL 5.0 pH 8.6 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG 100 PROPANE (C-3) @ @ CURRENT 72 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 75 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Peak gas: 2257u @ 19:45hrs, MD10385', mw in/out 12.0/10.4 DAILY ACTIVITY SUMMARY Completion-slick line/wireline work r/d e-line. Sheave. Break down y-block and swivel assembly. Trip out of hole f/6150 up wt=125 t/5040 up wt=105 Circulate and condition break. Pump fiber sweep around 8bpm=400psi CANRIG PERSONNEL ON BOARD 2 DAILY COST 3160 REPORT BY D. Muller Page 1 of 1Daily Report 4/25/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #58 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 25, 2013 DEPTH 10546 PRESENT OPERATION Circulating TIME 03:30:00 YESTERDAY 10546 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 12.10 VIS 69 PV 19 YP 29 FL 4.5 Gels 9/22/35 CL- 24000 FC 1/2 SOL 15.1 SD 0.06 OIL 3.0/80.3 MBL 7.5 pH 10.8 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Peak gas: 216u DAILY ACTIVITY SUMMARY Trip in hole, wash f/4380 t/4950 20spm=125psi down Wt=110. No hard tag encountered. Circulate and condition cbu 635gpm=1025psi CANRIG PERSONNEL ON BOARD 2 DAILY COST $2740 REPORT BY D. Muller Page 1 of 1Daily Report 4/26/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #59 DAILY WELLSITE REPORT Qugruk-3A REPORT FOR DATE Apr 26, 2013 DEPTH 10546 PRESENT OPERATION Waiting for cement to cure TIME 03:30:00 YESTERDAY 10546 24 HOUR FOOTAGE 0 CASING INFORMATION 13 3/8" @ 2120' 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 12.10 VIS 69 PV 19 YP 29 FL 4.5 Gels 9/22/35 CL- 24000 FC 1/2 SOL 15.1 SD 0.06 OIL 3.0/80.3 MBL 7.5 pH 10.8 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG 30 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No significant gas DAILY ACTIVITY SUMMARY Trip out of hole f/1911. Lay down cut jt. Slm. Out. Cut jt length=28.50 adjusted cement tag depth per slm=4212'. Pick up bha p/u cement retainer, 15' pup jt. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2740 REPORT BY D. Muller Page 1 of 1Daily Report 4/27/2013 C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C ) Repsol #60 DAILY WELLSITE REPORT Qugruk #3A REPORT FOR DATE Apr 27, 2013 DEPTH 10546 PRESENT OPERATION Canrig released and rigging down TIME 03:30:00 YESTERDAY 10546 24 HOUR FOOTAGE 0 CASING INFORMATION 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 FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Canrig released by company man at 1700 hrs and rigged down. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2740 REPORT BY D. Muller C O N F I D E N T I A L i n a c c o r d a n c e w i t h A S ( 3 8 . 0 5 . 0 3 5 ( a ) ( 8 ) ( C )
