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212-171
OF Taj yw�\,\!I//7,-.4'. THE STATE A1ask •11 and Gas tr, J Conservation Commission ALAsKA' s � t2 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 of ;" � Main: 907.279.1433 ALAS Fax: 907.276.7542 www.aogcc.alaska.gov June 20, 2016 Mr. Conrad Perry Cook Inlet Energy 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 %ANTED JAN 0 4 a?, Dear Mr. Perry: The Alaska Oil and Gas Conservation Commission (AOGCC) completed the surface plug and abandonment inspections at Olson Creek #1 (PTD 2121710) on June 9, 2016. A copy of the AOGCC surface abandonment inspection report for this well is attached. Olson Creek #2 (PTD 2141130) was previously abandoned on October 20, 2014. In lieu of a separate location inspection, AOGCC accepted photographs taken after burial of the abandoned well and clean-up at the Olson Creek drillsite locations. The provided photographs show the Olson Creek drillsite to be in compliance with onshore location clearance requirements as stated in 20 AAC 25.170. The AOGCC requires no further work on the subject wells or location at this time. However, CIE remains liable if any problems were to occur in the future with these wells. Sincerely, Daniel T. Seamount, Jr. Commissioner Attachment • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission 6�,0f1� TO: Jim Regg 1-Zg41 DATE: 6/9/16 P. I. Supervisor FROM: Bob Noble SUBJECT: Surface Abandonment Petroleum Inspector Olson Creek#1 Cook Inlet Energy PTD 2121710, Sundry 316-235 6/9/16: I flew over to Beluga and Cook Inlet Energy Rep. Don Jones picked me up at the airport. We drove to their Olson Creek#1 well location. I found the well was cut off - 6 feet below tundra level and full of hard cement. Don told me that the cement level was found to be down 44 feet between the 10 3/" and 7 5/8" and they topped it off. The pad was good clean gravel with no sign of spills. I then inspected the marker plate. It was found to have all the correct markings and to be the 3/8" thick and the same size as the outer most string of pipe. I , gave him approval to weld the marker plate in place and fill the hole. I also instructed him on making a mound over the well so they didn't end up with a hold in the ground. Summary: Olson Creek#1 meets the regulatory standards for the proper surface abandonment (cement to surface; cut-off depth; marker plate),I witnessed the successful Attachments: Photos (2) - 2016-0609_Surface_Abandon OlsonCk-1 bn.docx Page 1 of 2 0 • Surface Abandonment— Olson Ck#1 (PTD 2121710) Photos by AOGCC Inspector B. Noble June 9, 2016 ...,-',•1;-;r 4. , '' s 14.!.4,`,.: kr ...:"4"40 a , �', lib N--t ; y b ky t " 2 - r .4: iF N',-,', r i- -113/N 6,)° , ofsises:,„/ ' -4.r1P', 4...... 1 100,9(51100 20,:„... 41.- „lb,. -it_ __ 400, 2016-0609_Surface_Abandon_O1sonCk-1_bn.docx Page 2 of 2 • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil ❑ Gas❑ SPLUG ❑ Other ❑ Abandoned 2 Suspended El lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory Q• GINJ ❑ WINJ ❑ WAG❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 6.Date Comp.,Susp.,or 14.Permit to Drill Number/ Sundry: COOK INLET ENERGY' Aband.: 6/10/2016 '212-171 /-3140 -Z V. 1.- 3.Address: 7.Date Spudded: 15.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 6/25/2013 50-283-20171-00-00 - 4a.Location of Well(Governmental Section): 8.Date TD Reached: 16.Well Name and Number: Surface: 2886'FNL,2620'FWL Sec 6 T13N R10W 9/21/2013 OLSON CREEK#1 - Top of Productive Interval: N/A 9.Ref Elevations: KB:3o(...1 17.Field/Pool(s): GL: /11.4, BF: w EXPLORATION Total Depth: 10.Plug Back Depth MD/TVD: 18.Property Designation: 2561'FNL,2617'FWL Sec 6 T13N R1OW SURFACE MHT 9300062 4b.Location of Well(State Base Plane Coordinates,NAD 27): 11.Total Depth MD/TVD: 19.Land Use Permit: Surface: x- 299862.99 y- 2648974.51 Zone- 4 5,715MD/5,683TVD MHT 9300062 TPI: x- y- Zone- 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- 299866.73 y- 2649295.74 Zone-4 N/A N/A 5.Directional or Inclination Survey: Yes ❑(attached) No Q 13.Water Depth,if Offshore: 21.Re-drill/Lateral Top Window MD/TVD: Submit electronic and printed information per 20 AAC 25.050 N/A (ft MSL) 1,699'MD/1,6801-VD 22.Logs Obtained: List all logs run and,pursuant to AS 39'.05:W13IYand 26 AAC 25.071,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first.Types of logs to be listed include,but are not limited to:mud log,spontaneous potential, gamma ray,caliper,resistivity,porosity,magnetic resonance,dipmeter,formation tester,temperature,cement evaluation,casing collar locator,jewelry,and perforation record. Acronyms may be used.Attach a separate page if necessary SCANNED DEC 0 6 2016 EI ED JUN 16 2016 23. CASING,LINER AND CEMENTING RECORD AOGCC ' WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 10 3/4" 45.5# L80 0 157' 0' 157' driven n/a 7 5/8" 29.7# L-80 0 1,998' 0 1,971' 9 7/8" Lead slurry 13.5ppg 109bbls/330sacks Class G cement/Tail slurry Class G cement 15.8 ppg 40bbls/200 sacks 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): N/A eve".jjiOO-'6 -F;Hfet 26.ACID,FRACTURE,CEMENT SQUEEZE,ETC. [TATE Was hydraulic fracturing used during completion? Yes❑ No U U l tb 1 b Per 20 AAC 25.283(i)(2)attach electronic and printed information VERIFIED DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 1A- . PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift e • Date of Test: Hours Tested: Production for :7--:. . - -MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: -enod Flow Tubin. -sing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: - - '► -API(corr): 24-Hour Rate n Form 10-407 Revised 11/20 5 G .,�5°-r(,. CONTINUED ON PAGE 2 RBDMS �l- JUN 2 p 2016 Submit ORIGINIAL o a� 7lf3f19 7lz� V 28.CORE DATA Conventional Cis): Yes ❑ No ❑ Sidewall Coreses ❑ No ❑ If Yes,list formations and intervals cored(MD/TVD,From/To),and summarize lithology and presence of oil,gas or water(submit separate pages with this form, if needed).Submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No ❑ Permafrost-Top If yes,list intervals and formations tested,briefly summarizing test results. Permafrost-Base Attach separate pages to this form,if needed,and submit detailed test Top of Productive Interval information,including reports,per 20 AAC 25.071. Formation at total depth: 31. List of Attachments: Information to be attached includes,but is not limited to:summary of daily operations,wellbore schematic,directional or inclination survey,core analysis, paleontological report,production or well test results,per 20 AAC 25.070. 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Conrad Perry Email: cperryc c Iacieroil.com Printed Name: Conrad Per, 41112Title: Drilling Manager i Signature: Phone: 907-727-7404 Date: 6/15/2016 INSTRUCTIONS General: This form and the -•uired attach is provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion r port and 10-404 well sundry report when the downhole well design is changed.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC,no matter when the analyses are conducted. Item 1a: 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 1 b: Well Class-Service wells:Gas Injection,Water Injection,Water-Altemating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing,Ground Level,and Base Flange 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 15: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report measured depth and true vertical thickness of permafrost.Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and,pursuant to AS 31.05.030,submit all electronic data and printed logs within 90 days of completion,suspension,or abandonment,whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26.(Submit a separate form for each additional interval to be separately 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.Pursuant to 20 AAC 25.071,submit detailed descriptions,core chips,photographs,and all subsequent laboratory analytical results,including,but not limited to:porosity, permeability,fluid saturation,fluid composition,fluid fluorescence,vitrinite reflectance,geochemical,or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070,attach to this form:well schematic diagram,summary of daily well operations,directional or inclination survey,and other tests as required including,but not limited to:core analysis,paleontological report,production or well test results. Form 10-407 Revised 11/2015 Submit ORIGINAL Only • • GLACIER RECEIVED JUN 16 2016 June 15th, 2016 AOGCC Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage,Alaska 99501 RE: Well Completion Report Olson Creek#1 Cook Inlet Energy: 50-283-20171-01-00 /PTD 212-171 Dear Ms. Foerster, Cook Inlet Energy hereby submits the Well Completion Report for Olson Creek#1 abandonment. If you have any questions, please contact me at 907.727.7404. Sincerely, Conrad ' •rry SVP-Drilling Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage,AK 99501 1 OLSOSREEK#1 Abandonment 6-10-16 • 200'Cement Surface Plug. Casing cut and removed from 5'below grade. Welded Wet Cap installed. 10 3/4" L80 157'MD 45.5# Driven 157'TVD 50'Dump Bailed Cement Cement Retainer @ 250' • •-' 7 5/8"29.7#L80 LTC • 9 7/8"hole h'1 ,i • Olson Creek#1 PB1 Well LOST IN HOLE: 101 Jts Alum DP • 3 ea Steel DP XO 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" 3 ea flex collars TOC @ 1,568' • TM HOC • TM HOC ' •' Float Sub Whipstock @ 1,699'MD/1680'TVD • �` Stab l r. � Mud motor �.3''•:x,,5`, *1/4'1°'•• 1 Bit Cement Plug From 1,900'to 1,500' s } • P`. 4•r ' @ 1,711'Bridge Plug TOC @ 1.918' TOF @ 2,308'MD/2242'TVD 7 5/8"Shoe @ 1,998' TOF @ 2.101' 4 1/2"Drill pipe Fish/motor/jars Olson Creek#1 Well LOST IN HOLE: 89 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD @ 5,715'MD/5,683'WI PB#1 6 3/4"hole TD @ 5,643 MD/5,549'TVD 41111 • IDaily Drilling Report 1 Ito)Cook Inlet Energy_ -� I Tel2: Operator:Cook Inlet Reporting To: Consultant: Tell: UW I: 50-283-20171-01-00 Rig: Well Type: DATE: 2016.06.13 Spud: Hr Finished Drilling Hr: Rig Release: Hr: Days from Spud: PS-7 Operations at 6:00 : Total Days: 7 24 Hour Summary: Well abandonment complete.No operations ongoing at Olson Creek. 24 Hour Forecast: Surface Location: AFE Days: AFE#: 160012-0-0 Depth at 24:00 ft Progress: 0.00 ft Ground: ft MACP: psi @ ppg AFE Estimate $70,000 Temp: ° F POL: Cut or Fill: ft Last Press Test: Daily Cost: $0 Weather: Correct-Grd: ft Last BOP F/T: Cum Cost: $27,737 Mud Type: RT-Ground: ft LOT/FIT EMW: ppg AFE Other: 0 Mud Co.: RT: ft KT: bbl Total Cost: $27,737 TIME DEPTH DENSITY VIS PV YP GELS ECD WL FC PH SOLIDS MBT CI Ca++ K+ OIL (hr) (ft) (ppg) (s/qt) (cp) (Ibf/100ft2) 10s/10m/30m (ppg) (cc) 1/32 in (%) (ppb) (1)Pm) (%) MUD ADDITIVES Amount Units Deviation Surveys BHA O.D.(in) I.D.(in) Length(ft) Depth /Inc. /Azimuth @ @ @ @ @ @ @ @ @ @ @ @ Mud losses daily bbl ICUM bbl Equipment Centrifuge#1 Centrifuge#2 , Shaker 1 Shaker 2 Shaker 3 Shaker 4 Total Length: ft gpm Density Hrs gpm Density Hrs 1 2 Total Weight: lb Overflow 3 Wt Below Jar: lb Underflow 4 BHA Hours: hrs PUMP STROKE LINER SPM VOLUME PRESS Eff. Pump Output Slow Pump Rate Pressure Pressure Pressure Pressure # MODEL Company (in) (in) (gpm) * (psi) (%) (bbl/stk) Depth Mfw (30 stk) (40 stk) (50 stk) (60 stk) SERIAL NOZZLES(in) DEPTH DEPTH DAY DAY TOTAL TOTAL ROP BIT AVG BIT CONDITION Bit N Size(in) Mfgr TYPE NUMBER Or TFA(in') IN(ft) OUT(ft) (ft) hrs (ft) hrs fl/hr WT RPM I 0 D L B G 0 R f — Bit DP DC Jet Vel HHP hp/in' Hole Drag(PU/SO): / lb No (in) AV(ft/min) (in) AV(ft/min) (ft/s) * * Rotary WT/Torque: lb / ft-lb Act./Allow Hook Load: / lb(static) MOP: Klb TIME BREAKDOWN 1.Rig Up/Tear Down 8.Rig Repairs 15.Pressure Test BOP 22.Other 2.Drill 9.Slip&Cut Drill Line 16.Drill Stem Test 23.Abandonment 3.Reaming 10.Survey 17.Plug Back 24.Rig Move 4.Coring 11.Wireline 18.Cementing Other 25.Waiting on 5.Condition Mud&Circ 12.Casing&Cementing 19.Fishing T.Trouble Time 6.Tripping 13.Wait on Cement 20.Directional Work TOTAL HOURS 7.Rig Service 14.Nipple Up BOP 21.Waiting on Orders Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 14 2016 Page 1 of 2 • Daily Drilling Report Cook Inlet Energy_ �_ .. Te12: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.13 Remarks: No operations ongoing at the Olson Creek pad. The well abandonment work is complete. Time from Time to Hours Code Comments • Total Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 14 2016 Page 2 of 2 0 • Daily Drilling Report , ;Cook Inlet Energy_ i - Telt: Operator:Cook Inlet Reporting To: Consultant: Tell: UWI: 50-283-20171-01-00 Rig: Well Type: DATE: 2016.06.12 Spud: Hr Finished Drilling Hr: Rig Release: Hr: Days from Spud: 0 Operations at 6:00 : Total Days: 6 24 Hour Summary: No operations at Olson Creek.Abandonment work is complete. 24 Hour Forecast: Surface Location: AFE Days: AFE#: 160012-0-0 Depth at 24:00 ft Progress: 0.00 ft Ground: ft MACP: AFE Estimate $70,000 g P�@ PP9 $ Temp: ° F POL: Cut or Fill: ft Last Press Test: Daily Cost: $108 Weather: Correct-Grd: ft Last BOP Fif: Cum Cost: $29,188 Mud Type: RT-Ground: ft LOT/FIT EMW: ppg AFE Other: 0 Mud Co.: RT: ft KT: bbl Total Cost: $29,188 TIME DEPTH DENSITY VIS PV YP GELS ECD WL FC PH SOLIDS MBT CI Ca++ K+ OIL (hr) (ft) (ppg) (s/qt) (cp) (1bf/100(?) 10s/10m/30m (ppg) (cc) 1/32 in (%) (ppb) (ppm) (%) MUD ADDITIVES Amount Units Deviation Surveys BHA O.D.(in) I.D.(in) Length(ft) Depth /Inc. /Azimuth @ @ @ @ @ @ @ @ @ @ _ @ @ Mud losses daily bbl 1CUM bbl Equipment Centrifuge#1 I Centrifuge#2 Shaker 1 Shaker 2 Shaker 3 , Shaker 4 ,Total Length: ft gpm Density Hrs gpm Density Hrs _ 1 2 Total Weight: lb Overflow 3 Wt Below Jar: lb Underflow 4 BHA Hours: hrs PUMP STROKE LINER SPM VOLUME PRESS Eff. Pump Output Slow Pump Rate Pressure Pressure Pressure Pressure # MODEL Company (in) (in) (gpm) (psi) (%) (bbl/stk) Depth NNW (30 stk) (40 stk) (50 stk) , (60 stk) SERIAL NOZZLES(in) DEPTH DEPTH DAY DAY TOTAL TOTAL ROP BIT AVG BIT CONDITION Bit N Size(in) Mfgr TYPE NUMBER Or TFA(in') IN(ft) OUT(ft) (ft) hrs (ft) hrs ft/hr WT RPM I 0 D L B G 0 R Bit DP DC Jet Vel HHP hp/'in' Hole Drag(PU/SO): No (in) AV(f lmin) (in) AV(ft/min) (ft/s) * * / lb Rotary WT/Torque: lb / ft•lb Act./Allow Hook Load: / lb(static) MOP: Klb TIME BREAKDOWN 1.Rig Up/Tear Down 8.Rig Repairs 15.Pressure Test BOP 22.Other 2.Drill 9.Slip&Cut Drill Line 16.Drill Stem Test 23.Abandonment 3.Reaming 10.Survey 17.Plug Back 24.Rig Move 4.Coring 11.Wireline 18.Cementing Other 25.Waiting on 5.Condition Mud&Circ 12.Casing&Cementing 19.Fishing T.Trouble Time 6.Tripping 13.Wait on Cement 20.Directional Work 7.Rig Service 14.Nipple Up BOP 21.Waiting on Orders TOTAL HOURS Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 13 2016 Page 1 of 2 • • Daily Drilling Report )Cook Inlet Energy_ I Telt: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.12 Remarks: No operations ongoing at the Olson Creek pad. The well abandonment work is complete. Time from Time to Hours Code Comments Total Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 13 2016 Page 2 of 2 • Daily Drilling Cost Details y ;Cook Inlet Energy_ Telt: Operator:Cook Inlet Reporting To: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.12 SURFACE LOCATION: AFE#: 160012-0-0 AFE ESTIMATE: $70,000.00 ACTUAL TOTAL COST: $29,188.00 DAILY COST: $108.00 CUM COST TO DATE: $29,188.00 ACCOUNT NAME ACCOUNT AMOUNT VENDOR TICKET# COMMENTS NUMBER EXCL.TAX Equipment Rental-Surface 9326 Three Mile Creek Services, $108 Version 1068 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 13 2016 Page 1 of 1 • • Weekly Drilling Cost Summary )Cook Inlet Energy_ Tel 2: Operator:Cook Inlet Reporting To: Consultant: Tel 1: UWI:50-283-20171-01-00 WELL: Olson Creek Well#1 DATE 12-Jun-2016 AFE#: 160012-0-0 AFE Estimate: $70,000 Surf. Loc: Record 1 of 1 Cumulative Total: $29,188 %of AFE: 41.70 Dollar Diff: $40,812 FROM: 2016.05.01 TO: 2016.06.12 PS-1 PS-2 PS-3 PS-4 PS-5 PS-6 PS-7 Account Name Acct# Jun 7 Jun 8 Jun 9 Jun 10 Jun 11 Jun 12 Jun 13 Geology Data&Analysis 9378 Information/Communication 9310 Casing Crews,Pipe Handling Eq 9344 Surface Completion Equipment 9776 Conductor/Drive 9760 Fishing/Milling Equipment&Ser 9368 MWD/LWD Equipment&Servic 9338 Site Work,Surveying,Constructi 9300 Trash Disposal 9308 • Surface Casing 9762 Tubing 9769 Transportation-Trucking 9354 140 140 Coring Services 9376 Wireline/Slickline Services 9364 Miscellaneous Equipment 9782 Engineering&Consulting Service 9388 Wellhead/XMAS Tree Services 9348 Equipment Rental-Surface 9326 6,137 5,803 5,538 4,065 108 Frac Equipment&Services 9370 Wellsite Consulting&Contract La 9386 E-Line Services 9362 Misc Supplies,Consumables,& 9314 670 Production Casing 9766 HSE Equipment&Services 9384 Conductor&Cellar Setting Opera 9302 Housing,Camps,Water,&Cateri 9306 Pre/Post Rig Work&Other Well 9316 Bits 9328 Well Abandonment Equipment& 9382 CIE Overhead&Allocated Costs 9390 Directional Drilling Equipment& 9336 Transportation-Airplane/Helico 9358 495 990 Cuttings Disposal,Equipment,& 9352 Rig Mobilization/Demobilization 9318 Liner 9768 Drilling Fluids,Materials,&Servic 9332 Repairs,Testing,Certification&I 9374 Completion Fluids,Other Chemic 9334 Freight&Shipping 9360 Wellhead&Tree 9774 Downhole Completion Equipment 9778 Coiled Tubing Equipment&Servi 9372 Down Hole Completion Materials 9350 Downhole Artificial Lift Equipment 9780 Downhole Surveying&Processin 9340 Cementing Materials&Services 9346 Mud Processing Equipment&Se 9330 Daily Totals $9,568 $9,059 $6,388 $4,065 $108 Cumulative $9,568 $18,627 $25,015 $29,080 $29,188 Version 1035 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 12 2016 Page 1 of 2 0 • k Daily Drilling Report �i ;Cook Inlet Energy_ i 1 _. Telt: Operator:Cook Inlet Reporting To: Consultant: Tell: UWI: 50-283-20171-01-00 Rig: Well Type: DATE: 2016.06.11 Spud: Hr Finished Drilling Hr: Rig Release: Hr: Days from Spud: PS-5 Operations at 6:00 : Total Days: 5 24 Hour Summary: Loaded out the Red Doa Barrae with all equipment. 24 Hour Forecast: Surface Location: AFE Days: AFE#: 160012-0-0 Depth at 24:00 ft Progress: 0.00 ft Ground: ft MACP: psi @ ppg AFE Estimate $70,000 Temp: ° F POL: Cut or Fill: ft Last Press Test: Daily Cost: $4,065 Weather: Correct-Grd: ft Last BOP FIT: Cum Cost: $29,080 Mud Type: RT-Ground: ft LOT/FIT EMW: ppg AFE Other: 0 Mud Co.: RT: ft KT: bbl Total Cost: $29,080 TIME DEPTH DENSITY VIS PV YP GELS ECD WL FC PH SOLIDS MBT CI Ca++ K+ OIL (hr) (ft) (ppg) (s/qt) (cp) (Ibf/100ft') 10s/10m/30m (ppg) (cc) 1/32 in (%) (ppb) (ppm) (%) MUD ADDITIVES Amount Units Deviation Surveys BHA O.D.(in) I.D.(in) Length(ft) Depth /Inc. /Azimuth @ @ @ © © @ @ @ @ @ @ @ @ Mud losses daily bbl CUM bbl Equipment Centrifuge#1 Centrifuge#2 Shaker 1 Shaker 2 Shaker 3 Shaker 4 Total Length: ft gpm Density Hrs gpm Density Hrs 2 Total Weight: lb Overflow 3 Wt Below Jar: lb _ Underflow 4 BHA Hours: hrs PUMP STROKE LINER SPM VOLUME PRESS Eff. Pump Output Slow Pump Rate Pressure Pressure Pressure Pressure # MODEL Company (in) (in) (gpm) * (psi) (%) (bbl/stk) Depth M/w (30 stk) (40 stk) (50 stk) (60 stk) i SERIAL NOZZLES(in) DEPTH DEPTH DAY I DAY TOTAL TOTAL ROP BIT AVG BIT CONDITION Bit N Size(in) Mfgr TYPE NUMBER Or TFA(in') IN(ft) OUT(ft) (ft) hrs (ft) hrs ft/hr WT RPM 1 0 D L B G 0 R Bit DP DC Jet Vel HHP hp/in' Hole Drag(PU/SO): / lb No (in) AV(ft/min) (in) AV(ft/min) (ft/s) * * Rotary WT/Torque: lb / ft•Ib Act./Allow Hook Load: / lb(static) MOP: Klb TIME BREAKDOWN 1.Rig Up/Tear Down 8.Rig Repairs 15.Pressure Test BOP 22.Other 2.Drill 9.Slip&Cut Drill Line 16.Drill Stem Test 23.Abandonment 3.Reaming 10.Survey 17.Plug Back 24.Rig Move 4.Coring 11.Wireline 18.Cementing Other 25.Waiting on 5.Condition Mud&Circ 12.Casing&Cementing 19.Fishing T.Trouble Time 6.Tripping 13.Wait on Cement 20.Directional Work TOTAL HOURS 7.Rig Service 14.Nipple Up BOP 21.Waiting on Orders Version 1922 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 12 2016 Page 1 of 2 • • Daily Drilling Report ;„:k, ;`> Cook Inlet Energy_ Te12: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.11 Remarks: No operations ongoing at the Olson Creek pad. Time from Time to Hours Code Comments • Total Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 12 2016 Page 2 of 2 • • 1 Daily Drilling Report Re ort fr iCook Inlet Energy_ __ _ _.l Telt: Operator:Cook Inlet Reporting To: Consultant: Tell: UWI: 50-283-20171-01-00 Rig: Well Type: DATE: 2016.06.10 Spud: Hr Finished Drilling Hr: Rig Release: Hr: Days from Spud: PS-4 Operations at 6:00 : Total Days: 4 24 Hour Summary: Bury the abandoned well as per AOGCC.Cleared location.Send reports&pictures. 24 Hour Forecast: Load out the Red Doq barge with all equipment. Surface Location: AFE Days: AFE#: 160012-0-0 Depth at 24:00 ft Progress: 0.00 ft Ground: ft MACP: psi @ ppg AFE Estimate $70,000 Temp: ° F POL: Cut or Fill: ft Last Press Test: Daily Cost: $3,715 Weather: Correct-Grd: ft Last BOP FIT: Cum Cost: $16,432 Mud Type: RT-Ground: ft LOT/FIT EMW: ppg AFE Other: 0 Mud Co.: RT: ft KT: bbl Total Cost: $16,432 TIME DEPTH DENSITY VIS PV YP GELS ECD WL FC PH SOLIDS MBT CI Ca++ K+ OIL (hr) (ft) (ppg) (s/qt) (cp) (Ibf/10085) 10s/10m/30m (ppg) (cc) 1/32 in (%) (ppb) (ppm) (%) MUD ADDITIVES Amount Units Deviation Surveys BHA O.D.(in) I.D.(in) Length(ft) Depth /Inc. /Azimuth @ @ © @ @ @ @ @ @ @ @ @ @ Mud losses daily bbl ICUM bbl Equipment Centrifuge#1 Centrifuge#2 Shaker 1 Shaker 2 Shaker 3 Shaker 4 Total Length: ft _ gpm Density Hrs gpm Density Hrs l Total Weight: lb - Overflow 3 Wt Below Jar: lb Underflow 4 BHA Hours: hrs PUMP STROKE LINER SPM VOLUME PRESS Eff. Pump Output Slow Pump Rate Pressure Pressure Pressure Pressure # MODEL Company (in) (in) (gpm) * (psi) (%) (bbl/stk) Depth MIV (30 stk) (40 stk) (50 stk) (60 stk) SERIAL NOZZLES(in) DEPTH DEPTH DAY DAY TOTAL TOTAL ROP BIT AVG BIT CONDITION Bit N Size(in) Mfgr TYPE NUMBER Or TFA(in') IN(ft) OUT(ft) (ft) hrs (ft) hrs ft/hr WT RPM I 0 D L B G 0 R Bit DP DC Jet Vel HHP hp/in' Hole Drag(PU/SO): / lb No (in) AV(ft/min) (in) AV(ft/min) (ft/s) * * Rotary WT/Torque: lb / ftHlb Act./Allow Hook Load: / lb(static) MOP: Klb TIME BREAKDOWN 1.Rig Up/Tear Down 8.Rig Repairs 15.Pressure Test BOP 22.Other 2.Drill 9.Slip&Cut Drill Line 16.Drill Stem Test 23.Abandonment 3.Reaming 10.Survey 17.Plug Back 24.Rig Move 4.Coring 11.Wireline 18.Cementing Other 25.Waiting on 5.Condition Mud&Circ 12.Casing&Cementing 19.Fishing T.Trouble Time 6.Tripping 13.Wait on Cement 20.Directional Work TOTAL HOURS 7.Rig Service 14.Nipple Up BOP 21.Waiting on Orders Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 11 2016 Page 1 of 3 •. Daily Drilling Report )Cook Inlet Energy Tel2: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.10 Remarks: With the AOGCC satisifed buried the well and capped with 10'x 3'gravel mount as directed. Sent picture of gravel mound to Mr.Bob Noble at the AOGCC. Cleared location.Removed equipment. Sent pictures of location(pad)to town. Time from Time to Hours Code Comments • • Total Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 11 2016 Page 2 of 2 • • DailyDrilling A Report _ u Cook Inlet Energy _ ` Te12: Operator:Cook Inlet Reporting To: Consultant: Tell: UWI: 50-283-20171-01-00 Rig: Well Type: DATE: 2016.06.09 Spud: Hr Finished Drilling Hr: Rig Release: Hr: Days from Spud: PS-3 Operations at 6:00 : Total Days: 3 24 Hour Summary: Mix and dump cement down Olson 1-A,pump water down f/Otter well,remove plastic/Tape. 24 Hour Forecast: Prepare to do show/Tell with AOGCC Bob Noble.He gave us preen light to install ID plates.Bury tomorr Surface Location: AFE Days: AFE#: 160012-0-0 Depth at 24:00 it Progress: 0.00 ft Ground: ft MACP: psi @ pPg AFE Estimate $70,000 Temp: ° F POL: Cut or Fill: ft Last Press Test: Daily Cost: $6,271 Weather: Correct-Grd: ft Last BOP F/T: Cum Cost: $12,717 Mud Type: RT-Ground: ft LOT/FIT EMW: ppg AFE Other: 0 Mud Co.: RT: ft KT: bbl Total Cost: $12,717 TIME DEPTH DENSITY VIS PV YP GELS ECD WL FC PH SOLIDS MBT CI Ca++ K+ OIL (hr) (ft) (ppg) (s/qt) (cp) (Ibf/100 t2) 10s/10m/30m (ppg) (cc) 1/32 in (%) (PPb) (Ppm) (%) MUD ADDITIVES Amount Units Deviation Surveys BHA O.D.(in) I.D.(in) Length(ft) Depth /Inc. /Azimuth @ @ @ @ @ @ @ @ @ @ @ Mud losses daily bbl ICUM bbl Equipment Centrifuge#1 Centrifuge#2 Shaker 1 Shaker 2 Shaker 3 Shaker 4 Total Length: ft gpm Density Hrs gpm Density Hrs 1 2 Total Weight: lb Overflow 3 Wt Below Jar: lb Underfloor 4 BHA Hours: hrs ' PUMP STROKE LINER SPM VOLUME PRESS Eff. Pump Output Slow Pump Rate Pressure Pressure Pressure Pressure # MODEL Company (in) (in) (gpm) * (psi) (%) (bbllWW Depth W (30 stk) (40 stk) (50 stk) (60 stk) l SERIAL NOZZLES(in) DEPTH DEPTH DAY DAY TOTAL TOTAL ROP BIT AVG BIT CONDITION Bit N Size(in) Mfgr TYPE NUMBER Or TFA(in') IN(ft) OUT(ft) (ft) hrs (ft) hrs ft/hr WT RPM I 0 0 L B G 0 R f . i . Bit DP DC Jet Vel HHP hp/in= No (in) AV(ft/min) (in) AV(ft/min) (ft/s) * * Hole Drag(PU/SO): / lb Rotary WT/Torque: lb / ft-lb Act./Allow Hook Load: I lb(static) MOP: Klb TIME BREAKDOWN 1.Rig Up/Tear Down 8.Rig Repairs 15.Pressure Test BOP 22.Other 2.Drill 9.Slip&Cut Drill Line 16.Drill Stem Test 23.Abandonment 3.Reaming 10.Survey 17.Plug Back 24.Rig Move 4.Coring 11.Wireline 18.Cementing Other 25.Waiting on 5.Condition Mud&Circ 12.Casing&Cementing 19.Fishing _ T.Trouble Time 6.Tripping 13.Wait on Cement 20.Directional Work TOTAL HOURS 7.Rig Service 14.Nipple Up BOP 21.Waiting on Orders Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 09 2016 Page 1 of 3 • Daily Drilling Report Cook Inlet Energy_ j Tel2: Consultant: Tell: UWI: 50-283-20171-01-00 WELL: Olson Creek Well#1 DATE: 2016.06.09 Remarks: Rig up 1/2 yard Cement Mixer,Build Shoot from Cement maker to well. Mix&Pour Cement into outer annulus 10 3/4"x 7 5/8" 44'was where we found top of old cement. dumped 1.7 bbls of Cement observed cement at surfade. Do the same inside 7 5/8"casing. Pump out lake of ground water around&over Otter 1-A inpreparation to show AOGCC Rep Bob Noble arriving at 1530 hrs Mr.Noble arrived at 1535 hrs we went straight to Otter Pad. Mr.Noble inspected permit&criteria and and took picts of Casing Stub. Bob Noble gave us permission to install I.D.plate as per Sundry Permit on Otter 1-A. Bob and I went up to Olson 1A.and conducted same venue. While waiting on cement to cure,load trailers and haul f/Olson/Otters. to Cottonw000d Bob Noble arrive and gave us permission to weld on new plates to Olson&Otter,as per their directions. Tommorrow we will back fill holes. and begin reclamation work on Otter Pad. Sort out GOG and TWC hand tools/equipment. Time from Time to Hours Code Comments • • • • • • • • Total Version 1422 Wellman 9-Resource Energy Solutions Inc.(403)245-0220 www.resourceenergysolutions.com June 09 2016 Page 2 of 2 4110 40156A_ Creele- ( Prb Regg, James B (DOA) 21 Z I/ 10 From: Regg, James B (DOA) Sent: Wednesday,June 15, 2016 3:07 PM '� bit Sf l To: 'Conrad Perry' Subject: RE: Olson/otter Pictures are sufficient; we will not require a separate location inspection. Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Conrad Perry [mailto:cperry@glacieroil.com] Sent: Wednesday, June 15, 2016 2:17 PM To: Regg, James B (DOA) Subject: Olson/otter Jim, Were those pics sufficient? conrad SVP- Drilling NAMED DEC 1 6 2116 Glacier Oil and Gas Corporation 601 W. 5th Avenue STE 310 Anchorage,AK 99501 (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356—Cabin cperry@glacieroil.com CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential. If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review,disclosure, copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED. If you have received this transmission in error,please notify us immediately by forwarding this message to the original sender or by telephone at 907.433.3816 and then delete this message and its attachments from your computer. 1 • tC rer- ziz iC<7 Regg, James B (DOA) From: Conrad Perry <cperry@glacieroil.com> Sent: Wednesday, June 15, 2016 9:39 AM To: Regg,James B (DOA) Subject: Olson Creek Attachments: IMG_2104jpg;IMG_2105 jpg;IMG_2103jpg Jim, Here are some better pics of the Olson Creek#1 pad. conrad SVP- Drilling t#L,.ACECHP Glacier Oil and Gas Corporation 601 W. 5th Avenue STE 310 Anchorage,AK 99501 (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356—Cabin cperry@glacieroil.com CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential. If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review,disclosure, copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED.If you have received this transmission in error, please notify us immediately by forwarding this message to the original sender or by telephone at 907.433.3816 and then delete this message and its attachments from your computer. 1 • 0 Location Clearance—Olson Creek Drillsite Olson Creek#1 (PTD 2121710) Olson Creek#2 (PTD 2141130) Photos courtesy of Cook Inlet Energy 6/15/2016 "171171111' i''' l . v„ • 4 i. 1 ��, .may. ,. •. - �. _ '�` ..'.�. .--• t 2016-0615Location_Clearance_OlsonCkphotos.docx Page 1 of 2 • >n I 40. 2016-0615_Location_Clearance_OlsonCkphotos.docx Page 2 of 2 411,P, n ree PM Z=iZ t� 0 Regg, James B (DOA) From: Regg,James B (DOA) �Q �� �`f�I'� Sent: Wednesday,June 15, 2016 9:10 AM To: 'Conrad Perry' Subject: RE: Olson #1 and Otter 1A Inspector did witness the surface abandonment but I don't have any record/indication of the visual inspection of the wellsites to meet our location clearance requirements. Reference 20 AAC 25.170. Photos to document the condition of the two wellsites are acceptable in lieu an inspection in this case. Jim Regg Supervisor, Inspections AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Conrad Perry [mailto:cperry@glacieroil.com] Sent: Wednesday, June 15, 2016 8:49 AM To: Regg, James B (DOA) Cc: Stephen Ratcliff Subject: Olson #1 and Otter 1A Jim, Could you please send me the abandonment inspection sheets for these two wells for our files. I can't remember, do you do a final "approved" abandonment letter. We would like to inform Mental Health Trust and DNR that we have met the abandonment requirement to release our bond. Thanks, conrad SVP- Drilling €sL.av:iE& Glacier Oil and Gas Corporation 601 W. 5th Avenue STE 310 Anchorage, AK 99501 (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356—Cabin cperry@glacieroil.com 1 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 6/9/16 P. I. Supervisor FROM: Bob Noble SUBJECT: Surface Abandonment Petroleum Inspector Olson Creek#1 Cook Inlet Energy PTD 2121710, Sundry 316-235 6/9/16: I flew over to Beluga and Cook Inlet Energy Rep. Don Jones picked me up at the airport. We drove to their Olson Creek#1 well location. I found the well was cut off 6 feet below tundra level and full of hard cement. Don told me that the cement level was found to be down 44 feet between the 10 3/4" and 7 5/8" and they topped it off. The pad was good clean gravel with no sign of spills. I then inspected the marker plate. It was found to have all the correct markings and to be the 3/8" thick and the same size as the outer most string of pipe. I , gave him approval to weld the marker plate in place and fill the hole. I also instructed him on making a mound over the well so they didn't end up with a hold in the ground. Summary: Olson Creek#1 meets the regulatory standards for the proper surface abandonment (cement to surface; cut-off depth; marker plate),I witnessed the successful Attachments: Photos (2) - SCANNED DEC 1 82D1 2016-0609_Surface_Abandon OlsonCk-1_bn.docx Page 1 of 2 • 0 Surface Abandonment— Olson Ck #1 (PTD 2121710) Photos by AOGCC Inspector B. Noble June 9, 2016 1117.7'*:,,',.' * ,.., ; +. . s v9 4 14 ek* 11,"..il 4-** 1, t0 ax y . , t a •., , , r. -41 5 is toi A* w .. 1Y t s x ...,RG?: wd 1i vc2 42 O t),C) '- 4*,"31‘fA1\6_,,,/ "'* 407 Ar.ne di 2016-0609 Surface Abandon O1sonCk-1 bn.docx Page 2 of 2 yOFD • • A THE STATE Alaska Oil and Gas • tis��� �, of Conservation Commission LAsKA 333 West Seventh Avenue C GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 fjv ALAS Fax: 907.276.7542 www.aogcc.alaska.gov Conrad Perry Drilling Manager Cook Inlet Energy, LLC SCS • 601 5th Avenue, Suite 310 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Olson Creek#1 Permit to Drill Number: 212-171 Sundry Number: 316-235 Dear Mr. Perry: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy . Foerster Chair DATED this 2&4ay of April, 2016. RBDMS t,L APR 2 1 2016 • STATE OF ALASKA 0 EC E I V t • ALASKA OIL AND GAS CONSERVATION COMMISSION APR 1 8016 APPLICATION FOR SUNDRY APPROVALS 14,/to(/,& 10rr 20 AAC 25.280 1.Type of Request: Abandon ❑✓ Plug Perforations❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Energy,LLC . Exploratory Qtr Development ❑ 212-171 - 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20171-00-00 7. If perforating: 41% 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N k Will planned perforations require a spacing exception? Yes ❑ No Lvf OLSON CREEK#1 9.Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300062 =XPLORATIOP • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth TVD: MPSP(psi): Plugs(MD): Junk(MD): 5,715' - 5,683' 200' 200' G Casing Length Size MD TVD Burst Collapse Structural Conductor 157' 10 3/4" 157' 157' na na Surface 1,699' 7 5/8" 1,699' 1,680' 6890 4790 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A N/A N/A N/A N/A Packers and SSSV Type: N/A Packers and SSSV MD(ft)and TVD(ft): N/A 12.Attachments: Proposal Summary U Wellbore schematic Q 13.Well Class after proposed work: Detailed Operations Program 2 BOP Sketch ❑ Exploratory ❑, - Stratigraphic ❑ Development❑ Service ❑ 14.Estimated Date for May 15th,2016 15.Well Status after proposed work: Commencing Operations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned Q 17. I hereby certify that the foregoing is true and the procedure approved conrad perry herein will not be deviated from without prior written approval. Contact Email cperry(U7gIacieroil.com Printed Name conrad p-/y-967 27 , Title Drilling Manager-4-13-2106 tr G'L/ �. 4.0 Signature 1 Ph. e Date t COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 2- .� Plug Integrity ® BOP Test ❑ Mechanical Integrity Test ❑ Location` Clearance [y Other: A c 4-. 1 l�µ5,C C r 2 �g ,& 4 c- `� 2 - I, /412-a � �} / j�t €6 jc/E_:..4. ...1C u..-5.) C....J� —c,( w:J� 4Y p C ez Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes ❑ Nod Subsequent Form Required: J 0-'/(j 7 RBDMS 1,-(' APR 2 1 2016 APPROVED BY Approved by:� /9't COMMISSIONER THE COMMISSION Date: ¢, _// Ojjef3rIi }AvIIii Form 10-403 evied1112015 for 12 months from the date of approval. Jy)a yl,,`'l�gttachments in Duplicate • • RECEIVED APR 18 2016 AOGCC April 18th, 2016 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage,Alaska 99501 RE: Sundry Application Olson Creek#1 Cook Inlet Energy: 50-283-20171-01-00 /PTD 212-171 Dear Ms. Foerster, Cook Inlet Energy hereby submits a sundry for Olson Creek#1 abandonment. If you have any questions, please contact me at 907.727.7404. Sincerely, /if? ‘JsConraDdl)!elinry VP Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage,AK 99501 1 • • 1. WELL NAME - Olson Creek #1 Requirements of 20 AAC 25.005(f) Well Summary Current Status: The well is suspended Current Perforations NONE NEW Perforations NONE Scope of Work: • Ensure well is dead • Pull Tree, hanger and tubing stub • Recover 2 bbls diesel freeze protect • Fill 200' of 7 5/8"with cement • Recover Cellar • Cut casing 3' below grade/weld on ID CAP /r`' Z A-Ac zS'1") a • Backfill pad to grade General Well Information: Reservoir Pressure/TVD: 2,444 psi @ 5,683'TVD (.43 psi/ft) (TD) MASP: 0 psi (well plugged to 200') Wellhead Type/Pressure Rating: 11" 5M Wellhead/ 2 7/8" 5M tree Well Type: Exploration Estimated Start Date: May 15th, 2016 CIE Drilling Manager: CIE Sr. Drilling Engineer: CIE Production Manager: Conrad Perry Stephen Ratcliff David Kumar (907) 727-7404 (907) 433-9738 (907) 433-3822 conrad.perry@CookInlet.net Stephen.Ratcliff@CookInlet.net David.Kumar@CookInlet.net 3 S • Program 1. Recover two way check from tree. Check well for pressure on tree and annulus. Record and bleed off V pressure. Check well dead. Call for AOGCC witness minimum 48 hrs before abandonment. 2. Rig up lines to tree and annulus. Slowly pump 3 bbls water down tubing,recovering approximately 2 bbls.- diesel from annulus. 3. Check well dead. Remove tree. Back out hold down bolts and pull hanger and tubing stub. 4. Pump out 1-2 bbls of 9.2 brine packer fluid that was left in the hole. Mix with cement to 13.5 ppg and slowly pour down 7 5/8"casing. Repeat until cement to surface(expected volume–9 blst' Recover excess brine for disposal. �� 5. Remove cellar. Clear gravel and dirt to enable cutting the casing minimum 3'below original grade level. Ensure sufficient working room to prevent potential wall collapse. Capture any contaminated gravel/dirt in 55 gallon drums for disposal. t,(-441'— 6. Secure wellhead/casing with trackhoe.Cut casing at the-3 level and pull clear. L o�,�, 1 k 7. 20 AAC 25.120. Well abandonment marker The exact surface location of an abandoned tr onshore well must be shown by a well abandonment marker plate that(1)is constructed of steel that is at least 1/4 inch thick;(2)is welded to,and covers,the outermost casing string,including the conductor casing; (3)does not extend beyond the outermost casing string;and(4)contains the following information bead- welded directly to the marker plate: (A) Cook Inlet(B) PTD 212-171 LLC 171 Pittc473 (C) Olson Creek Well #1 (D) API # 50-283-20171-00-00 8. Clear abandonment with AOGCC Inspector and backfill well location to grade. 9. Clean surrounding area of all debris. 10. Send in final report. 4 OLSCREEK#1 10-10-13 CURRENT • One joint of 2 7/8"Tubing& one pup joint below the hanger.Freeze protected with diesel. 7. 10 3/4" L80 157'MD 45.5# Driven 157'TVD ip 50'Dump Bailed Cement • ' a" ' ? Cement Retainer @ 250' 7 5/8"29.7#L80 LTC ,Ar` ,?, 9 7/8"hole Olson Creek#1 PB1 Well LOST IN HOLE: 101 Jts Alum DP Ty 3 ea Steel DP XO 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" 3 ea flex collars TOC @ 1,568' i,'' '.,, .R ,. ', TM HOC • • r TM HOC Float Sub Whipstock @ 1,699'MD/1680'TVD - Stab Mud motor Cement Plug From 1,900'to 1,500' 1,711'Bridge Plug 5 _ TOC @ 1,918' TOF @ 2,308'MD/2242'TVD 7 5/8"Shoe @ 1,998' TOF @ 2.101' 4 1/2"Drill pipe Fish/motor/jars Olson Creek#1 Well LOST IN HOLE: 89 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD @ 5,715'MD/5,683'TVI PB#1 6 3/4"hole TD @ 5,643 MD/5,549'TVD OL•N CREEK#1 Abandonment • 200'Cement Surface Plug. yie�nK;.1, Casing cut and removed from- I '1 3'below grade. Welded Wet A tF Cap installed. ' 10 3/4" L80 157'MD : 45.5# Driven 157'TVD 50'Dump Bailed Cement Cement Retainer @ 250' 7 5/8"29.7#L80 LTC :40 9 7/8"hole y., a Olson Creek#1 PB1 Well LOST IN HOLE: 101 Jts Alum DP 3 ea Steel DP XO A 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" • 3 ea flex collars TOC @ 1,568' ,' TM HOC • TM HOC Float Sub Whipstock @ 1,699'MD/1680'TVD Stab Mud motor Bit Cement Plug From 1,900'to 1,500' . • • 1,711'Bridge Plug TOC @ 1,918' TOF @ 2,308'MD/2242'TVD1 7 5/8"Shoe @ 1,998' TOF @ 2.101' 4 1/2"Drill pipe Fish/motor/jars Olson Creek#1 Well LOST IN HOLE: 89 Jts Alum DP 3 ea Steel DP '\ XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD @ 5,715'MD/5,683'TVI PB#1 6 3/4"hole TD @ 5,643 MD/5,549'TVD • • • Cook Inlet Ener RECEIVED gy NOV 062015 AOGCC November 3, 2015 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Suite 100 Anchorage,Alaska 99501 SCwpNva JUN 0 1 2016 Re:Application for Sundry Cook Inlet Energy, LLC: Olson Creek#1A PTD-212-171 API: 50-283-20171-00-00 Dear Ms. Foerster, Cook Inlet Energy (CIE) hereby submits a completed sundry report Form 10-404 for Olson Creek 1 located on CIE Lease Number MHT 9300062. Attached is the 10-404 form for suspended well conditions which includes a current wellbore schematic, plat showing the location of the suspended well, and summary with photographs showing wellhead and surrounding area conditions. Ify&1 any questi ,please contact me at(907) 433-3820 Z--/--/--- Lem ;.,1 cott Begins Production Engineer Cook Inlet Energy 601 W. 5th Avenue-Suite 310 Anchorage,AK 99501 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax . • STATE OF ALASKA il RECEIVES` ALASKA OIL AND GAS CONSERVATION COMMISSION NOV d 6 2015 REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon L I Plug Perforations Li Fracture Stimulate U Pull Tubing U Operations shutdown Li Performed: Suspend [ Perforate ❑ Other Stimulate ❑ Alter Casing ❑ Chane p roved Pr-r9gram ❑ Plug for Redrill ❑ arforate New Pool Elii Repair Well ❑ Re-enter Susp Well ❑ Other: .Lr.Jf1°A— X 2.Operator COOK INLET ENERGY,LLC. 4.Well Class Before Work: 5.Permit to Drill Number: // Name: ti Development ❑� Exploratory ❑ 212-171 3.Address: 601 W 5th AVE,SUITE 310 ANCHORAGE,AK Stratigraphic❑ Service ❑ 6.API Number: 99501 50-283-20171-00-00 7.Property Designation(Lease Number): 8.Well Name and Number: MHT 9300062 ' OLSON CREEK#1 • 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): EXPLORATION 11.Present Well Condition Summary: Total Depth measured 5715 • feet Plugs measured 1900-1500 feet true vertical 5683 a feet Junk measured 2308 feet Effective Depth measured 2308 feet Packer measured N/A feet true vertical 2242 feet true vertical N/A feet Casing Length Size MD TVD Burst Collapse Structural 157' 10 3/4" 157 157 5210 2470 • Conductor Surface 1699' 7 5/8" 1699 1680 6890 4790 Intermediate Production Liner Perforation depth Measured depth N/A feet SCANNED JUN 0 1 2016 True Vertical depth N/A feet Tubing(size,grade,measured and true vertical depth) N/A NA N/A N/A Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: Lead slurry 13.5ppg, 109bbIs/330 sacks Class G cement/Tail slurry Class G cement 15.8 ppg 40bbls/200 sacks Intervals treated(measured): 50ft Dump Bailed Cement w/Cement Retainer @ 250ft.Cement plug 1900ft-1500ft. Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: N/A N/A N/A N/A N/A Subsequent to operation: N/A N/A N/A N/A N/A 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations ❑ Exploratory Q - Development❑ Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas ❑ WDSPL Q Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP 0 • SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: Sundry Number:313-517 Contact Scott Begins Email scott.begins@cookinlet.net Printed Name �/co�tt Begins Title Production Engineer Signature ral .77,7/ Phone 907-433-3820 Date 11/5/2015 F. rn 10-404 Revised 5/2015 Submit Original Only RBDMS' ` 'Not 1 `1015 /z•P.(s' 0. /z/Mr • • OLSON CREEK #1 10-10-13 One joint of 2 718"Tubing 8 one pup joint below the hanger Freeze protected with diesel. 10 3/4" L80 157'MD 45.5# Driven 157'TVD 50'Dump Bailed Cement Cement Retainer @ 250' ' • Olson Creek#1 LOST IN HOLE: 101 Its Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" 3 ea flex collars TM HOC Float Sub Stab Mud motor Bit TOC @ 1,568' • Cement Plug From 1,900'to 1,568' Whipstock @ 1,699'MD/1680'TVD Bridge Plug @ 1,711' • 9 7/8"hole to 2.049' a t 7 5!8"29 7#180 LTC c@1998' • TOF®2,101' TOF @ 2,308'MD/2242'TVD 4 1/2"Drill pipe Fish/motor/Jars Olson Creek#1A LOST IN HOLE: 89 Jts Alum OP 3 ea Steel DP XO 2 Steel DC 4 3/4"Jars 9 ea steel DC 4 3/4"Float Sub Stab Mud Motor 61D31@4" 3/4"hde Bit TD @ 5.643 MD 6 3/4"hole TD @ 5,715'MD/5,683'TVD . _,, _ ,�I ,__j �_.__�, ._, a p .. 7 {3 :• � . 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Ofx ' CO � a 1% NC ri m ` e'SLZ \ M — co Mde rez 8 1 ��z/ ' 1 - I / \@ \ \ . . • • Olson Creek#1 Suspended Well Inspection Summary An inspection of current well conditions for suspended well Olson Creek#1 was conducted on April 30th 2015 by Stephen Ratcliff(Senior Drilling Engineer)and Tim Jones(Senior Landman)from CIE. Please see attached photos for condition of the wellhead and surrounding location.The following observations were found: • The well head and surface location is in a secure and safe condition • There are no discolorations,fluids,or sheens visible on the ground or in any nearby water • r • ';',....•:. Wax . * r' ,r " i'..'' , 1� "�'x' , r '' { `. (} s 4i • . • r ,',:.....0,7,..:.;::'. t eilr Ar l?-R. i FY.';'..,%'�q,.,•>' til #..1" 'p .a XP a},,, ,t4-.r.,,,,„...„,,734K 'k' > �, ,4 GTr+,,�' asii rL.P 4` 1-4.�> ,rv' rf f r'.v y - ,v 4/ • • • i „ „,,•„ '''',14%'...,-,11•'''?: k ''p;IA; ".. s ? ! '� � ' •ri 'ma k . �• µ 4..� 'r' ,. k,_ ,,fit ,yam Y "r' M� 4 Y�4 -III",.. 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E 0 p 0. a g p H £ a o O 0 0 0 0 m LL o 2 ao) 0 o o d E 0 d a w w w 3 z U a 0 0 0 a G 0 0 • Release of Confidential Data Coversheet Well Name: Olson Creek 1 PTD: 212-171 E-Set: 24045, 24046 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS ✓ Confidential (incomplete) entry in Well Data List notes //import to DigLogs via E-Set tab L Scan labeled data Ur Apply OCR text recognition l 7Save to Well Log Header Scans 17 New "complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 2/29/2016 ` 2 \2--11-1 cook Inlet Energy, It C "IVED 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501 FEB 18 2016 Phone: (907) 334-6745 Fax: (907) 334-6735 AOGCC DATA TRANSMITTAL Date: February 18, 2016 To: Meredith Guhl From: Barbara Kruk AOGCC Cook Inlet Energy, LLC 333 W. 7th Ave, Suite 100 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 Anchorage, AK 99501 Phone: (907) 279-1433 Phone: (907)433- 3802 FAX: (907) 334 -6735 TRANSMITTAL DESCRIPTION Well Data for OlsonCreek#1, API#50-283-20171-00 & OlsonCreek-PB1 API: 50-283-20171-70 In accordance with Alaska Regulations 20 AAC25.537(b),we request N o Cernaw� ori �P a4 - that confidentiality be extended to all of the following information. 74' //S,tC61� Item Qty Description 1 1 CD - Olson Creek-1 & Olson Creekl-PB1 End of Well Report- PDF Mudlog - Olson Creek#1 - Format: LAS, EMF, PDF, TIFF — 24 04 ' Mudlog - Olson Creek#1-PB1; Format: LAS, EMF, PDF, TIFF -2...t.4 L -4(c7 Please sign below to acknowledge receipt. Received B Date: a / � �� , Returned to Cook Inlet Energy, L Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 2 18 16 OlsonCrk1 r , • +1►► ,I ' CegADJI err' '''-..--,. ,-; \ ', .,• 1 0 k5NO car { t ',ii ( 7oàI) \ !, C speed 'i COMOLCT X d i ,1 17 v� Re ord.el- [ 80mm ] ILi . 3-01,art 5 -i GlAkz Ceopmi-- '.',, ',..,,-,',.;.,...' 5 .? �. ®111 - - A • • Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501 JAN 2 5 2016 Phone: (907) 334-6745 Fax: (907) 334-6735 AOGCC DATA TRANSMITTAL Date: January 25, 2016 To: Meredith Guhl From: Barbara Kruk AOGCC Cook Inlet Energy, LLC 333 W. 7th Ave, Suite 100 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 Anchorage, AK 99501 Phone: (907) 279-1433 Phone: (907)433 - 3802 FAX: (907) 334 - 6735 TRANSMITTAL DESCRIPTION Well Data for OlsonCreek #1, API#50-283-20171-00 & OlsonCreek-PB1 API: 50-283-20171-70 In accordance with Alaska Regulations 20 AAC25.537(b),we request that confidentiality be extended to all of the following information. /0 L e\-0-p7" C64rfi '"L ao Item Qty Description (1// 1 1 Paper Copy -Wellbore Schematic Updated - 1 Page 2 1 CD - Olson Creek-1 & Olson Creekl-PB1; Date 1/25/16; 2 files Mudlog -Olson Creek#1 - Format: LAS 044 Mudlog -Olson Creek#1-PB1; Format: LAS -4- 2y(2)(-ILo iqbAce,ifyuAlk 7.ND coyire_rA- 76c-t7 I Please sign below to acknowledge receipt. Received ( Date. t_sk./.0 a7 h (r) Returned to Cook Inlet Energ', LLC Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 1 25 16 OlsonCrk1 �.'._ ri �: I * "' Bio. • .*., , . ___--, ,,, ......i.,,,.-: , --6,5,,,L,TmLEI -,-:.'-, : 1,'' . ,.,.•I! .: -7,0 1, _, Et4i, 'r,6114 u•L , „.-14*-, :, ' ' ''''' 4 er �' ' oso,) tit 4d4 . So- -19 3 — CDI ® i. 9 J SPSEflt' ii ,,,.,.,,,,,,,,,,H-12 iY I` L �I.ESSf i W 11 -'''''i ti-;'''':'''''''' bistocrii1441-Ptsfr: Fo'2 85` eitii.' ; ,';f::; f 1.,; f; Fkle,S l1. LRS _wtvot.t) z, .i--='',_:,0*,. +aWl�s§txs:Attinv,'rs,#�.. r;:�s- i t' _..�sar w..r+tis��:F.r.. • aogcc_olsoncrkl_mudlog_las.txt Volume in drive E is CIE_OLSONCRK1 Volume serial Number is 7C72-6A3C Directory of E:\ 01/25/2016 03:04 PM 796,072 Olson Creek #1 Mudlog.las 01/25/2016 03:02 PM 804, 570 Olson Creek #1-PB1 Mudlog.las 2 File(s) 1,600,642 bytes Total Files Listed: 2 File(s) 1,600,642 bytes 0 Dir(s) 0 bytes free Page 1 • • Guhl, Meredith D (DOA) From: Barbara Kruk <Barb.Kruk@cookinlet.net> Sent: Monday, January 25, 2016 3:54 PM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA); Conrad Perry; Greg Kirkland Subject: RE: Olson Creek 1, PTD 212-171, Data Required Attachments: OlsonCrkl_data_transmittal_aogcc2.pdf; OlsonCreekl_EOW_README.txt Meredith, Please see the attached file for data that was delivered to AOGCC today and below email for details on the data request and submittal. Thanks, Barb Barbara Kruk Geo-Technician Cook Inlet Energy 601 W. 5th Avenue, Suite 310 Anchorage,AK 99501 Main Ph: 907-334-6745 1 Office Ph: 907-433-3802 Cell Ph: 907-952-11511 Email:barb.kruk@cookinlet.net From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov) Sent: Monday,January 11, 2016 3:16 PM To: Barbara Kruk<Ba.rb.Kruk@cookinlet.net> Cc: Bettis, Patricia K (DOA)<patricia.bettis@alaska.gov>; Schwartz, Guy L(DOA)<guy.schwartz@alaska.gov> Subject: Olson Creek 1, PTD 212-171, Data Required Hello Barb, Dan Dickinson said I should send this request to you. Olson Creek 1 was released from confidentiality on November 16, 2015. During my review of the well file I noted several issues that need to be addressed. 1) The well schematic(dated 10-10-13) provided with the 10-407 appears to be incorrectly labeled, based on the relabeling of the mudlogs provided. Please provide an updated well schematic with the correct TD depth by each wellbore. Please note that the correct label for the original mainbore would be PB1, not 1A. Provided updated well schematic paper copy on 1/25/16. 2) The digital data supplied with the mudlogs(pdf, emf, of files) need to be correctly labeled with the correct branch of the well and also the correct API number.The digital data needs to be resubmitted with the correct labeling. Updated Digital mudlog LAS files delivered on CD 1/25/16.We have contacted Halliburton to update the image files(PDF, EMF,TIF) with the correct well name and API number and will send the updated files as soon as possible. 3) Please confirm that the attached "read me" file is correct and agrees with the updated well schematic.—Yes, The attached "read me" file is correct and agrees with the updated well schematic. 4) Please confirm in writing that no other logging was completed on this well. In the PTD packet, open hole quad combo was listed as planned logging program, along with GR/Res from surface casing depth ( 2000')to surface, but no logs other than mudlogs have been submitted. - Confirming no other logging was completed on this well. • Please send all updated data to my attention. Please provide the updated data- mudlogs and well schematic- by January 25, 2016. 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. 2 OLOI CREEK#1 10-10-13 REVISED • One joint of 2 7/8"Tubing& RECEIVED one pup joint below the hanger.Freeze protected with J pHnlIV 5 L 2 9016 diesel. U • 10 3/4" L80 157'MD AOGCC 45.5# Driven 157'TVD 50'Dump Bailed Cement Cement Retainer @ 250' 7 5/8"29.7#L80 LTC • 9 7/8"hole Olson Creek#1 PB1 Well LOST IN HOLE: 101 Jts Alum DP 3 ea Steel DP XO , 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" 3 ea flex collars TOC @ 1,568' • TM HOC TM HOC " Float Sub Whipstock @ 1,699'MD/1680'TVD • . Stab Mud motor Cement Plug From 1,900'to 1,500' .. @ 1,711'Bridge Plug TOC @ 1.918' TOF @ 2,308'MD/2242'TVD 7 5/8"Shoe @ 1.998' TOF @ 2,101' 4 1/2"Drill pipe Fish/motor/jars Olson Creek#1 Well LOST IN HOLE: 89 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD @ 5,715'MD/5,683'TV( PB#1 6 3/4"hole TD @ 5,643 MD/5,549'TVD • . Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Monday,January 11, 2016 3:16 PM To: 'Barbara Kruk' Cc: Bettis, Patricia K (DOA); Schwartz, Guy L(DOA) Subject: Olson Creek 1, PTD 212-171, Data Required Attachments: OlsonCreekl EOW README.txt Tracking: Recipient Read 'Barbara Kruk' Bettis,Patricia K(DOA) Schwartz,Guy L(DOA) Read:1/12/2016 8:46 AM Hello Barb, Dan Dickinson said I should send this request to you. Olson Creek 1 was released from confidentiality on November 16, 2015. During my review of the well file I noted several issues that need to be addressed. 1) The well schematic(dated 10-10-13) provided with the 10-407 appears to be incorrectly labeled, based on the relabeling of the mudlogs provided. Please provide an updated well schematic with the correct TD depth by each wellbore. Please note that the correct label for the original mainbore would be PB1, not 1A. 2) The digital data supplied with the mudlogs(pdf, emf,of files) need to be correctly labeled with the correct branch of the well and also the correct API number.The digital data needs to be resubmitted with the correct labeling. 3) Please confirm that the attached "read me" file is correct and agrees with the updated well schematic. 4) Please confirm in writing that no other logging was completed on this well. In the PTD packet, open hole quad combo was listed as planned logging program, along with GR/Res from surface casing depth (-2000')to surface, but no logs other than mudlogs have been submitted. Please send all updated data to my attention. Please provide the updated data-mudlogs and well schematic- by January 25, 2016. 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, 1 C:1Users\mdguhl1AppData\Local\Microsoft\Windoviporary Internet Files1Content.OutlooklKVK3E2EX1O1s1k1_EOW_REAWednesday,January 27,2016 10:00 AM NOTE: Halliburton Surface Data Logging End of Well Report Olson Creek #1 Olson Creek #1PB DATE: 10/5/13 The well names are reveresd on the mudlogs and directional survey. Olson Creek#1-PB1 Depth 0' - 5,643 ' MD; API: 50-283-20171-70-00 Olson Creek#1 Depth 0 ' - 5,715' MD (5, 160'MD last survey pt) ; API: 50-283-20171-00-00 -1- • Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Tuesday, November 03, 2015 9:32 AM To: Guhl, Meredith D (DOA) Subject: RE: Olson Creek 1, PTD 212-171, Extended Confidentiality? Hi Meredith, No, DNR has received no request for extended confidentiality on the subject well. Thank you, -Paul From:Guhl, Meredith D (DOA) Sent:Tuesday, November 03, 2015 9:18 AM To: Decker, Paul L(DNR)<paul.decker@alaska.gov> Cc: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov>; Davies,Stephen F (DOA)<steve.davies@alaska.gov> Subject:Olson Creek 1, PTD 212-171, Extended Confidentiality? Hello Paul, Has extended confidentiality been requested for Olson Creek 1, PTD 212-171, by Cook Inlet Energy?The well is due for release after 11/15/2015. 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 • • 111.11"ell""nlidnllnIIIIM' .. • . 2 EZs.) � 0 Y F� LL CI H. ' IIMLLI In 6.. `.UL C'41C 7 Q an In fi 4 0le0 v .MB r; LW M n o 1000 C N V .MS ) L 0 aiCO CD Z rfl tip>1 Ce TZ in et / d ~ th L N a N O m + V O ® 6" RI .. a? N ?Ti) E E o O C C C N C C) Q - C D co o p u'j m m U) Q 0 0 0 0 0 .N7) 0 �° �_ _ L �, o Vl V! M H N d ,C _ 7 cS 3 0 -c w ` (a) OOOa0 o C) rs ! 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N N CO V V 0 0 0 CO CO CO 10 0 V CO N .- 0 0 0 A N W C W '13O 0 U Z ZZZZZ ZZZZZ ZZZZZ ZZZZZ ZZZZZ ZZZZZ ZZZZZ ZZZ rn O M m (n oo CO n v o r in 0) 7 0) v CO 0) CO v 0 CO Co CO r M M 0 V N (N 0 CO n U C 0)O) 0 0) V (O (O 7 V M O V r 9 N (O a0 O M V O N 0 O O 7 M 00 V M M N 0) N N 7 M N M O O r q U3 CO MM0MNMM J GCO V CO V V V V CO CO CO CO CO COM CO N N N N N N N N CO N CO N 2, CO CO CO M CO M M M M M M M M M M M M M M M M CO CO CO CO CO CO M CO CO CO CO M CO CO M CO M CO N Z > O O m O r 0 0 0 0 V M 0N0 D 0) ar0 r0 llro V M O O (Or D O )0 3 3 V 1 V 1 M M N O O O O W 0 o ai 0i ai 0i 0i 0i 0i ai of ai of of of 0i ai 0i 0i ai 0i ai 0i au 'DO 0 ro cd 0o ao 0 000 (0 0 0 06 m m V V r 0) N (O aD V r O M O W N (O aD V r t0 (O V M N O W do r O 'Cr,' V M N O O) fir r ,C G M M M V V V (O (O (O (O O O O r r r W W CO O O N M V 8 (O O r W O — N M V V N OO N N N N N N N N N N N N N N N N N N N N C) M M M M M M M M M M V V V V V V V 'V a0 0 V 0 N (D 0 (O 0 V M N0) CO 0 (0 V co O co N- (O 0 V V V V V V V co M N 0 0) 00 00 .- .- 0 0 0) a) 0) 0) 0) W 0) 0) 0) CO CO CO CO Uo OD m r N r r h r r; r r r r- r r r r r co co co O E M M M M N N N N N N N N N N N N N N N N N N N C y M E M co 0) N 0 CO V N- 0 CO CO 0) N 0 00 V N- CO U) V CO N a- 0 a) co r co (O V CO N 0 0) 00 '07- .C2 .0 0 0 O 0 0 ,- ,- N N N M M M M V V V 0 0 0 co r co a) O ' N N CO V 0 co r co a) 0 .- N co O 0 N N N N N N N N N N N N N N N N N N N N N N N (•) (') M M M M M M co-co- f•) V V V V V Z O O M (O V V M N 0) O (O 0) CO OO 0) (D OD 0 (D 0 0 0 CO a 0 N 0 (O 0) CD M 00 V CO CO at.. 0 W N O N (O 0 N V 0) a) LO CO V V CO r V N a- .- 0) V a) CO O r V .- N N CO CO CO 0) 0) O CO O r r 00 - M O O r V a0 O (O r 0) W O r a0 r ao r r O r (O O O W 0O cc:; a0 0) 00 N N O M 7 N r N M V V V V W V N V V N (O V N N (O (O M V N N M CO N 00') M N U) U) 0) E 0 O VI CVo l0 V CO 0 CO V CO r 0 0 CO N 0 (D o CD V N 0 (O 0) a) OD 0 CO 0 0 CO V N 0 r 0 0) CO V CN W M co .- 9 m V o O (O r CD CD r O O (D t0 M O O r O N V M N O N O a0 a) O (O r aD a0 L O V M M N ( 0 0 0 — — 0 0 0 0 O O O O O O O O O O6 0 0 7 LO O) p Mt N L V C 7 J 0 0 cp 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD0 0 COG J LL N `y o O o 0 0 o 6. 0. 0. 0. 9 OOOOO 0 O O O O 0000 0 O O CDO CD 0 0 0 0 0 CDO o O O O 0 0 0 0 O 0 0 0 0 0 0 0 0 r r O M (D 0) N O a0 V r.13 O M O a) N N 28 D) a0 r (D O V M N O 0) 2 r O (O V M N Q) : Q ` N N N N N N N N N N N N N N N N N csN f`') (•) M M M M M M M M M M V V V V V V V V N I0 0 • • E 0o a_ w 0 - O 0 d c = o a) E c E _1 0 0 O N- (0 v (D M .- 00 0 vi(W.) .F2 C E NN N N N ▪ V 0 M M M M M • N T1 _ CO O 0) (D (O M .d J 0N O N O O O O O d y r rO co 1 V +C Dp T OD O r_ d rn r- Xi d _ 0o y �I c ((0 = 0 `� CCDv rncN 0 0 I + 'p aoao rN- (o w ? (j o 0 rn co CO0 c0 CO C (n __ = r z � � 0 • ry) 0) M W O) O) .� W a) y = 0) 01 0) 0) W to W NN 0) 0) 0) Q 0 r r W O C _ v z� ' A E E, o + ar o Nr1 rn0n Ua co O pi r (o (r) o fta o 0) c3) a) 0) c , an MN 0) 0) 0) d to O (▪ moo (Co ((00 ((00 ((00 C d C z _ a Z N N N N N t t 0 ~ 0 z c W 0) a' co O (o C NN-. d• 0 y) a) O O O .- .-- L N. C o m = E _ e c w a o a -57, w o 0 Z + U ZZ ZZZ = — 0)U C COM (Oo V M N H E J rt) M N cu V N N N N N CO Z p M M M M M V) Z +N >1 Q 0 Z r- (D (D M 'O J a + + U) (n v1 U) rn d c a) U N L _ OD co W OO W t � C O a 3.' N 00 0) O s- F2 d U 01 U) y = v v v ui LOi v (9 i2 15 rn r r- CD 0 V M F # )R yi co. (O W. W. W. o C) o 0 (D (o ? M N Bo- C - ,n• y v_ uD CO r au 0 0 0 to p NR 0' V V V a ` ` s 000 � 5 Cc) O (D O _O O O— CD To _ 01 Z '5 D N M O N v p coOO _0 t.= (O 0 _ ^ m N N N E a ~ N lD > d j r a pr..... E L c T ' p p Q I■ C a O Q "'" O N G al CE O 0 C MMO c o 000 0 ici c r oo CO - ao O w o 0 0 - 73 O w m 0 00 000 +� E o m v tp t rn :) ,0 m y O p H � (Do v = gN (DCD 0 to a :4 13 CO) . LL p d o =— 1'- E 0 0 (ov ow 0 E c0i m e z ? ° m cc_ C s a Jd o0 0 0 0 y y T1 :E c J O 0 O O O Q) CCI r�(� d L _, 0 0) 0 0 0 cu h V Q ' Q = o m ao r mN. 0, U a v v )ori to i N 0 0 • OA o cfl Ci) O W o 0 — C H O O 0 0 0 N r In N O O o CO M N 7 V T a) JX � ci) V N C O 0) N U o 0 O 0 U 2• o CA N N 7 07 O 0 (n ▪ o CO N _ C N O O {rL It O z • k z 0 a7 r = cz > U O O d O N m N m4-5 t o 0 3 ~ O o m O Q z e N ■� o0. re y v m 3 0 C N d • 0 E m / \ % C) k x \ 2a NI§ $k6cNi co �o� co ]/»/ \ _ % •• EE¥ \ = a -n a ^ $ )§§ oma IAA )�2 f - � c@ % & » \ƒ-0 ill \ 6 tet0 )\> Z � LL \ . o j« 2 . \ C § \ \ 51_ ]] 6.7 - O if / Ott J 7 2 7)I f§k It \ \ / §§ }p1 § } I— a " �Zt ca Z It/ O \ � I t I— K( � § 7 to CO . 2\ I- | § ƒ 2 { { } 0 . . . f / gg t - t - k $ \ . a ) 0 0 � - \ \ § f \ : � 7 - % co § csi \ 2 \ ) r ; \ / $ ) j - { s } a - ¥ § 6 3 - Z 2 I \ � ff ƒ j \ \ } / ) E / « - CI a) ` k § / } ? ° Lc) 06 \ 0 . - e I / $ R / Li) ii:$ LL / k ) { ) ) { e \ ) ) § E k ) j al § j j 77 8° f \ \ { } c \ 2 ± % y \ - - E t 6 um g / \ / \ ) / j ( / ƒ 2 co m E * 7 - \ G \ 3 # § I « / ( [ E 4 t { \ a, ~ w. 8 f 8a Z 7 > 0 / 0 ) / ) \ cc_ ) 0) s • III HALLIBURTON E Sperry Drilling MAR 2 1 2014 ' 1 di ' LL INFORMATION Created On:Feb 04 2014 Customer : Cook Inlet Energy Survey Report Well Name : Olson Creek#1-1. Job Number : AK-XX-0900491711 Rig Name : Miller Rig 34 Field Name : West Side-Cook Inlet Country : USA 'IRECTIONAL SURVEY DATA Tie-in 0.00 0.00 0.00 0.00 0.00 N 0.00 E Measured Depth Inclination Direction Vertical Depth Latitude Departure Vertical Section Dogleg 4. (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°1100') 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 3.64 5.12 399.66 14.44 N 0.90 E 14.41 0.56 500.00 4.29 4.39 499.42 21.33 N 1.47 E 21.28 0.65 600.00 4.84 3.92 599.10 29.27 N 2.05 E 29.20 0.55 700.00 5.45 2.22 698.69 38.22 N 2.52 E 38.14 0.63 800.00 6.37 0.81 798.16 48.51 N 2.78 E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1,095.52 88.06 N 1.57 E 87.98 0.79 1200.00 9.83 355.59 1,194.20 104.18 N 0.52 E 104.13 1.09 1300.00 10.86 357.01 1,292.58 122.10 N 0.62 W 122.07 1.06 1400.00 11.96 356.06 1,390.60 141.85 N 1.83 W 141.84 1.12 1500.00 13.67 356.67 1,488.11 163.98 N 3.23 W 164.01 1.72 1600.00 15.57 356.67 1,584.86 189.18 N 4.69 W 189.24 1.90 1699.00 17.62 357.78 1,679.73 217.42 N 6.04 W 217.50 2.10 1740.00 14.30 357.82 1,719.15 228.68 N 6.48 W 228.77 8.11 1770.00 14.04 1.54 1,748.24 236.02 N 6.52 W 236.11 3.15 1800.00 13.67 0.65 1,777.36 243.20 N 6.38 W 243.29 1.44 1830.00 13.52 2.28 1,806.52 250.25 N 6.20 W 250.33 1.38 1860.00 12.94 1.86 1,835.73 257.11 N 5.95 W 257.18 1.96 1890.00 12.55 2.20 1,864.99 263.72 N 5.72 W 263.78 1.33 1920.00 11.99 1.79 1,894.30 270.09 N 5.50 W 270.14 1.87 1950.00 11.48 2.96 1,923.68 276.19 N 5.25 W 276.23 1.87 1980.00 11.08 2.72 1,953.10 282.05 N 4.96 W 282.08 1.35 2010.00 10.77 1.18 1,982.55 287.73 N 4.76 W 287.75 1.41 2040.00 10.20 0.44 2,012.05 293.19 N 4.68 W 293.21 1.95 2070.00 9.59 0.47 2,041.61 298.34 N 4.64 W 298.36 2.03 2101.00 9.00 1.77 2,072.20 303.35 N 4.55 W 303.36 2.03 2131.00 9.05 1.97 2,101.83 308.05 N 4.39 W 308.06 0.21 Job No:AK-XX-0900491711 Well Name: Olson Creek#11111111, Survey Report INSITE V8.0.0 Page 1 • • HALLIBURTON � sp--v 0-1,-9 'DIRECTIONAL SURVEY DATA Measured Depth Inclination Direction ertical Depth Latitude- ' Departure Vertical Section Dogleg -- (ft)...- (deg) (deg) lei (ft) (ft) �.._(ft) (ft) (°/100') 2161.00 8.63 2.19 2,131.47 312.66 N 4.23 W 312.66 1.40 2191.00 8.18 3.14 2,161.15 317.04 N 4.02 W 317.03 1.59 2221.00 7.51 4.82 2,190.87 321.12 N 3.74 W 321.11 2.35 2251.00 6.69 5.51 2,220.64 324.82 N 3.41 W 324.79 2.77 2281.00 5.95 6.94 2,250.46 328.10 N 3.05 W 328.06 2.51 2311.00 5.31 6.66 2,280.31 331.02 N 2.71 W 330.97 2.13 2341.00 4.75 6.16 2,310.20 333.63 N 2.41 W 333.57 1.88 2371.00 4.25 7.00 2,340.10 335.97 N 2.14 W 335.90 1.67 2401.00 3.91 8.53 2,370.03 338.08 N 1.86 W 338.01 1.20 2431.00 3.34 11.25 2,399.97 339.95 N 1.53 W 339.87 1.97 2461.00 2.63 13.64 2,429.93 341.48 N 1.20 W 341.38 2.41 2491.00 2.10 16.24 2,459.90 342.67 N 0.89 W 342.57 1.79 2521.00 1.58 16.53 2,489.88 343.60 N 0.61 W 343.48 1.73 2551.00 0.94 27.02 2,519.88 344.21 N 0.38 W 344.09 2.27 2581.00 0.48 74.29 2,549.88 344.46 N 0.15 W 344.34 2.35 2611.00 0.86 128.40 2,579.87 344.36 N 0.15 E 344.22 2.34 2641.00 1.05 136.95 2,609.87 344.01 N 0.51 E 343.87 0.78 2671.00 1.51 145.99 2,639.86 343.49 N 0.92 E 343.33 1.66 2701.00 1.78 147.53 2,669.85 342.77 N 1.39 E 342.60 0.92 2731.00 1.85 149.91 2,699.83 341.95 N 1.88 E 341.78 0.35 2761.00 1.85 148.46 2,729.82 341.12 N 2.38 E 340.93 0.16 2791.00 1.76 150.49 2,759.80 340.31 N 2.86E 340.10 0.35 2821.00 1.60 147.86 2,789.79 339.55 N 3.31 E 339.33 0.59 2851.00 1.61 151.76 2,819.78 338.82 N 3.73 E 338.60 0.37 2881.00 1.60 148.40 2,849.77 338.09 N 4.15 E 337.86 0.31 2911.00 1.54 147.26 2,879.76 337.40 N 4.59E 337.15 0.24 3001.00 1.32 158.10 2,969.73 335.42 N 5.63 E 335.14 0.38 3091.00 1.06 157.16 3,059.71 333.69 N 6.34 E 333.39 0.29 3181.00 1.01 147.90 3,149.69 332.24 N 7.09 E 331.93 0.20 3271.00 0.75 150.41 3,239.68 331.06 N 7.80 E 330.72 0.29 3360.00 0.69 157.98 3,328.68 330.06 N 8.29 E 329.71 0.13 3450.00 0.59 155.34 3,418.67 329.13 N 8.69 E 328.77 0.12 3540.00 0.48 150.60 3,508.67 328.38 N 9.07 E 328.01 0.13 3630.00 0.38 136.72 3,598.66 327.84 N 9.46 E 327.46 0.16 3720.00 0.23 141.40 3,688.66 327.48 N 9.77 E 327.09 0.17 3810.00 0.06 269.15 3,778.66 327.34 N 9.84 E 326.95 0.30 3900.00 0.16 268.21 3,868.66 327.33 N 9.67 E 326.95 0.11 3990.00 0.28 322.29 3,958.66 327.50 N 9.41 E 327.13 0.25 4080.00 0.54 308.36 4,048.66 327.94 N 8.94 E 327.58 0.31 4170.00 0.82 299.81 4,138.65 328.52 N 8.05 E 328.18 0.33 4260.00 0.90 308.81 4,228.64 329.29 N 6.94 E 328.98 0.17 4350.00 0.87 302.93 4,318.63 330.10 N 5.81 E 329.82 0.11 4440.00 0.60 252.98 4,408.63 330.33 N 4.79 E 330.08 0.74 4530.00 0.79 186.04 4,498.62 329.58 N 4.27 E 329.34 0.87 4620.00 0.83 183.88 4,588.61 328.31 N 4.16 E 328.08 0.06 Job No:AK-XX-0900491711 Well Name: Olson Creek#1- Survey Report INSITE V8.0.0 Page 2 • • HALLIBURTON 1 SPerrY Drilling DIRECTIONAL SURVEY DATA Measured Dept Inclination Direction Vertical Depth . Latitude Departure Vertical Section Dogleg L. (ft) r (deg) (deg)_ (ft) _w.._ .(ft) (ft) (ft) (°/100') 4710.00 0.84 191.03 4,678.60 327.01 N 3.99E 326.78 0.12 4800.00 0.69 196.51 4,768.59 325.85 N 3.71 E 325.63 0.19 4890.00 0.86 203.21 4,858.59 324.71 N 3.29 E 324.50 0.21 4980.00 0.83 198.31 4,948.58 323.47 N 2.82 E 323.27 0.09 5070.00 0.73 206.00 5,038.57 322.33 N 2.37 E 322.15 0.16 5160.00 0.89 218.26 5,128.56 321.27 N 1.68 E 321.10 0.26 SURVEY FOOTER DIRECTIONAL SURVEY DATA NOTES -Calculation based on minimum curvature method. -Survey coordinates relative to well system reference point. -TVD values given relative to drilling measurement point. -Vertical section relative to well head. -Vertical section is computed along a direction of 358.44 degrees(Grid) -A total correction of 18.40 deg from Magnetic north to Grid north has been applied -Horizontal displacement is relative to the well head. -Horizontal displacement(closure)at 5,160.00 feet is 321.27 feet along 0.30 degrees(Grid) WARRANTY HALLIBURTON ENERGY SERVICES,INC.WILL USE ITS BEST EFFORTS TO FURNISH CUSTOMERS WITH ACCURATE INFORMATION AND INTERPRETATIONS THAT ARE PART OF,AND INCIDENT TO,THE SERVICES PROVIDED. HOWEVER,HALLIBURTON ENERGY SERVICES, INC.CANNOT AND DOES NOT WARRANT THE ACCURACY OR CORRECTNESS OF SUCH INFORMATION AND INTERPRETATIONS. UNDER NO CIRCUMSTANCES SHOULD ANY SUCH INFORMATION OR INTERPRETATION BE RELIED UPON AS THE SOLE BASIS FOR ANY DRILLING,COMPLETION, PRODUCTION,OR FINANCIAL DECISION OR ANY PROCEDURE INVOLVING ANY RISK TO THE SAFETY OF ANY DRILLING VENTURE,DRILLING RIG OR ITS CREW OR ANY THIRD PARTY.THE CUSTOMER HAS FULL RESPONSIBILITY FOR ALL DRILLING,COMPLETION,AND PRODUCTION OPERATION. HALLIBURTON ENERGY SERVICES, INC. MAKES NO REPRESENTATIONS OR WARRANTIES,EITHER EXPRESSED OR IMPLIED,INCLUDING,BUT NOT LIMITED TO,THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,WITH RESPECT TO THE SERVICES RENDERED. IN NO EVENT WILL HALLIBURTON ENERGY SERVICES,INC.SERVICES BE LIABLE FOR FAILURE TO OBTAIN ANY PARTICULAR RESULTS OR FOR ANY DAMAGES,INCLUDING,BUT NOT LIMITED TO,INDIRECT,SPECIAL OR CONSEQUENTIAL DAMAGES, RESULTING FROM THE USE OF ANY INFORMATION OR INTERPRETATION PROVIDED BY HALLIBURTON ENERGY SERVICES, INC. Job No:AK-XX-0900491711 Well Name: Olson Creek#1-11111 Survey Report INSITE V8.0.0 Page 3 2_,•1.--V1 I • • 1-41,04 6 HALLIBURTON I spr y°MIling . WELL INFORMATION Customer : Cook Inlet Energy Survey Report Well Name : Olson Creek#1-MMI Job Number : AK-XX-0900491711 Rig Name : Miller Rig 34 Field Name : West Side-Cook Inlet Country : USA DIRECTIONAL SURVEY DATA Vii: Tie-in 0.00 0.00 0.00 0.00 0.00 N 0.00 E Measured Depth Inclination Direction Vertical Depth Latitude Departure Vertical Section Dogleg `5 (ft) (deg) (deg) (ft) (ft) (ft) (ft) (°/100') y 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 3.64 5.12 399.66 14.44 N 0.90 E 14.41 0.56 500.00 4.29 4.39 499.42 21.33 N 1.47 E 21.28 0.65 600.00 4.84 3.92 599.10 29.27 N 2.05 E 29.20 0.55 700.00 5.45 2.22 698.69 38.22 N 2.52 E 38.14 0.63 800.00 6.37 0.81 798.16 48.51 N 2.78 E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1,095.52 88.06 N 1.57 E 87.98 0.79 1200.00 9.83 355.59 1,194.20 104.18 N 0.52 E 104.13 1.09 1300.00 10.86 357.01 1,292.58 122.10 N 0.62 W 122.07 1.06 1400.00 11.96 356.06 1,390.60 141.85 N 1.83 W 141.84 1.12 1500.00 13.67 356.67 1,488.11 163.98 N 3.23 W 164.01 1.72 1600.00 15.57 356.67 1,584.86 189.18 N 4.69 W 189.24 1.90 1700.00 17.64 357.79 1,680.69 217.72 N 6.06 W 217.80 2.09 1800.00 20.13 358.78 1,775.30 250.07 N 7.01 W 250.17 2.51 1850.00 21.23 359.03 1,822.08 267.72 N 7.34 W 267.82 2.21 2037.00 25.78 359.37 1,993.51 342.28 N 8.37 W 342.38 2.44 2067.00 25.49 359.07 2,020.56 355.26 N 8.54 W 355.36 1.05 2097.00 24.87 358.49 2,047.71 368.02 N 8.82 W 368.13 2.23 2127.00 24.16 357.87 2,075.00 380.46 N 9.21 W 380.57 2.53 2157.00 23.36 357.19 2,102.46 392.54 N 9.73 W 392.66 2.82 2187.00 22.67 357.07 2,130.07 404.25 N 10.32 W 404.39 2.29 2217.00 22.21 357.14 2,157.80 415.69 N 10.90 W 415.83 1.53 2247.00 21.67 356.74 2,185.63 426.88 N 11.49 W 427.04 1.88 2277.00 21.06 356.03 2,213.56 437.79 N 12.18 W 437.96 2.19 2307.00 20.33 355.49 2,241.63 448.36 N 12.96 W 448.55 2.54 2337.00 19.61 355.16 2,269.83 458.58 N 13.80 W 458.78 2.42 2367.00 18.96 354.46 2,298.14 468.44 N 14.69 W 468.67 2.29 Job No:AK-XX-0900491711 Well Name: Olson Creek#1-PM Survey Report INSITE V7.4.20 Page 1 0 • HALLIBURTON I Sperry°''1"in9 DIRECTIONAL SURVEY DATA Measured Depth Inclination jim Direction Vertical Depth Latitudes,Aiiiiiiiiii,,,,,,„Departure Vertical Section Dogleg ( (ft) (deg) ` (deg) (ft) (ft) ' (ft) (°/100') 2397.00 18.38 354.08 2,326.56 478.00 N 15.65 W 478.25 1.98 2427.00 17.74 353.40 2,355.08 487.24 N 16.66 W 487.52 2.24 2457.00 17.46 352.63 2,383.68 496.25 N 17.77 W 496.55 1.21 2487.00 17.18 352.07 2,412.32 505.10 N 18.96 W 505.43 1.09 2517.00 16.71 352.02 2,441.02 513.76 N 20.17 W 514.12 1.59 2547.00 16.04 352.00 2,469.80 522.13 N 21.34 W 522.52 2.24 2577.00 15.40 351.31 2,498.68 530.18 N 22.52 W 530.59 2.19 2607.00 14.83 350.79 2,527.64 537.91 N 23.74 W 538.35 1.95 2637.00 14.33 350.36 2,556.67 545.36 N 24.97 W 545.84 1.70 2667.00 13.66 350.14 2,585.78 552.51 N 26.20 W 553.02 2.25 2697.00 13.06 350.36 2,614.97 559.34 N 27.38 W 559.88 2.00 2727.00 12.47 349.53 2,644.23 565.87 N 28.53 W 566.44 2.05 2757.00 11.98 348.91 2,673.55 572.11 N 29.72 W 572.71 1.71 2787.00 11.39 347.68 2,702.93 578.06 N 30.95 W 578.69 2.13 2817.00 10.65 346.67 2,732.37 583.65 N 32.22 W 584.31 2.56 2847.00 10.37 346.91 2,761.87 588.98 N 33.47 W 589.67 0.92 2877.00 9.95 344.81 2,791.40 594.11 N 34.76 W 594.83 1.89 2907.00 9.28 343.93 2,820.98 598.93 N 36.11 W 599.69 2.27 2937.00 9.02 342.33 2,850.60 603.50 N 37.49 W 604.30 1.21 2967.00 8.51 341.66 2,880.24 607.85 N 38.91 W 608.68 1.73 2997.00 8.17 339.79 2,909.93 611.96 N 40.34 W 612.83 1.45 3027.00 7.73 338.53 2,939.64 615.84 N 41.82 W 616.75 1.60 3057.00 7.25 336.78 2,969.38 619.45 N 43.30 W 620.40 1.75 3087.00 6.88 336.06 2,999.16 622.83 N 44.78 W 623.82 1.28 3117.00 6.25 336.31 3,028.96 625.97 N 46.16 W 627.00 2.11 3147.00 5.63 337.62 3,058.80 628.83 N 47.38 W 629.89 2.10 3177.00 5.05 334.64 3,088.67 631.38 N 48.51 W 632.47 2.15 3207.00 4.53 335.51 3,118.56 633.66 N 49.56 W 634.77 1.76 3237.00 4.01 334.75 3,148.48 635.68 N 50.50 W 636.82 1.73 3267.00 3.17 331.76 3,178.42 637.36 N 51.34 W 638.52 2.88 3297.00 2.22 319.93 3,208.39 638.54 N 52.11 W 639.72 3.64 3327.00 1.48 306.25 3,238.37 639.21 N 52.80 W 640.41 2.87 3357.00 0.96 304.33 3,268.36 639.58 N 53.32 W 640.80 1.74 3387.00 1.07 271.73 3,298.36 639.73 N 53.80 W 640.96 1.94 3417.00 0.78 256.97 3,328.35 639.70 N 54.28 W 640.94 1.26 3447.00 1.22 220.00 3,358.35 639.40 N 54.69 W 640.66 2.54 3477.00 1.21 214.31 3,388.34 638.90 N 55.07 W 640.16 0.41 3507.00 1.73 202.34 3,418.33 638.22 N 55.42 W 639.49 2.01 3537.00 2.35 204.66 3,448.31 637.24 N 55.85 W 638.52 2.09 3567.00 2.79 199.37 3,478.28 635.99 N 56.35 W 637.29 1.65 3597.00 2.72 195.92 3,508.25 634.62 N 56.79 W 635.93 0.60 3627.00 3.01 195.65 3,538.21 633.18 N 57.20 W 634.50 1.00 3657.00 2.96 189.59 3,568.17 631.66 N 57.54 W 632.99 1.07 3687.00 2.97 189.55 3,598.13 630.13 N 57.80 W 631.47 0.03 3717.00 3.10 188.64 3,628.09 628.56 N 58.05 W 629.91 0.48 Job No:AK-XX-0900491711 Well Name: Olson Creek#1..PBI Survey Report INSITE V7.4.20 Page 2 • • HALLIBURTON 1 Sperry Drilling DIRECTIONAL SURVEY DATA ME Measured Depth Inclinations Direction 41/11. ...,• Vertical Depth Latitude Departure Vertical Section Dogleg - (499). , L. . (dei `. ,,Y (ft).� (ft) (ft) (ft) (°1100') < 3747.00 3.39 183.53 3,658.04 626.87 N 58.22 W 628.22 1.36 3777.00 3.55 182.43 3,687.99 625.06 N 58.32 W 626.42 0.56 3807.00 MIIEIIIMIIIEIEMI 3,717.92 623.12 N 58.31 W 624.48 1.48 3837.00 3.89 181.36 3,747.86 621.10 N 58.29 W 622.45 0.87 3867.00 4.14 182.87 3,777.78 619.00 N 58.37 W 620.36 0.88 3897.00 3.80 181.76 3,807.71 616.93 N 58.46 W 618.29 1.15 3927.00 3.88 IIIIIIEEMIII 3,837.64 614.92 N 58.58 W 616.29 0.82 3957.00 3.99 185.50 3,867.57 612.87 N 58.77 W 614.24 0.38 3987.00 3.84 184.27 3,897.50 610.83 N 58.95 W 612.21 0.58 4062.00 4.04 185.23 3,972.32 605.69 N 59.38 W 607.09 0.28 4152.00 3.95 185.28 4,062.11 599.46 N 59.95 W 600.87 0.10 4242.00 3.72 188.92 4,151.91 593.49 N 60.69 W 594.92 0.37 4332.00 3.85 189.60 4,241.71 587.62 N 61.64 W 589.08 0.16 4422.00 3.69 196.76 4,331.51 581.87 N 62.98 W 583.37 0.55 4512.00 3.69 198.62 4,421.33 576.35 N 64.74 W 577.90 0.13 4602.00 3.63 203.62 4,511.14 570.99 N 66.81 W 572.60 0.36 4647.00 3.72 198.08 4,556.05 568.30 N 67.84 W 569.94 0.81 4723.00 3.65 201.10 4,631.89 563.70 N 69.47 W 565.38 0.27 4813.00 3.99 206.58 4,721.69 558.22 N 71.90 W 559.98 0.55 4903.00 4.15 204.41 4,811.47 552.46 N 74.65 W 554.28 0.25 4993.00 4.23 210.96 4,901.23 546.64 N 77.71 W 548.55 0.54 5083.00 4.62 208.15 4,990.96 540.60 N 81.13 W 542.61 0.49 5173.00 4.70 210.62 5,080.66 534.23 N 84.71 W 536.34 0.24 5263.00 5.04 215.03 5,170.34 527.83 N 88.86 W 530.05 0.56 5353.00 5.08 214.92 5,259.99 521.32 N 93.41 W 523.67 0.05 5443.00 5.42 219.32 5,349.61 514.77 N 98.38 W 517.25 0.59 5533.00 5.35 218.48 5,439.21 508.19 N 103.69 W 510.83 0.12 5642.00 5.35 218.48 5,547.74 500.24 N 110.01 W 503.05 0.00 DIRECTIONAL SURVEY DATA NOTES -Calculation based on minimum curvature method. -Survey coordinates relative to well system reference point. -TVD values given relative to drilling measurement point. -Vertical section relative to well head. -Vertical section is computed along a direction of 358.44 degrees(Grid) -A total correction of 18.40 deg from Magnetic north to Grid north has been applied -Horizontal displacement is relative to the well head. -Horizontal displacement(closure)at 5,642.00 feet is 512.19 feet along 347.60 degrees(Grid) Job No:AK-XX-0900491711 Well Name: Olson Creek#1. 911.11 Survey Report INSITE V7.4.20 Page 3 i • HALLIBURTON I Sperry OrHIing ARRANTY HALLIBURTON ENERGY SERVICES,INC.WILL USE ITS BEST EFFORTS TO FURNISH CUSTOMERS WITH ACCURATE INFORMATION AND INTERPRETATIONS THAT ARE PART OF,AND INCIDENT TO,THE SERVICES PROVIDED. HOWEVER,HALLIBURTON ENERGY SERVICES,INC. CANNOT AND DOES NOT WARRANT THE ACCURACY OR CORRECTNESS OF SUCH INFORMATION AND INTERPRETATIONS. UNDER NO CIRCUMSTANCES SHOULD ANY SUCH INFORMATION OR INTERPRETATION BE RELIED UPON AS THE SOLE BASIS FOR ANY DRILLING, COMPLETION,PRODUCTION,OR FINANCIAL DECISION OR ANY PROCEDURE INVOLVING ANY RISK TO THE SAFETY OF ANY DRILLING VENTURE,DRILLING RIG OR ITS CREW OR ANY THIRD PARTY.THE CUSTOMER HAS FULL RESPONSIBILITY FOR ALL DRILLING, COMPLETION,AND PRODUCTION OPERATION. HALLIBURTON ENERGY SERVICES,INC.MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESSED OR IMPLIED,INCLUDING,BUT NOT LIMITED TO,THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,WITH RESPECT TO THE SERVICES RENDERED. IN NO EVENT WILL HALLIBURTON ENERGY SERVICES,INC. SERVICES BE LIABLE FOR FAILURE TO OBTAIN ANY PARTICULAR RESULTS OR FOR ANY DAMAGES,INCLUDING,BUT NOT LIMITED TO, INDIRECT,SPECIAL OR CONSEQUENTIAL DAMAGES,RESULTING FROM THE USE OF ANY INFORMATION OR INTERPRETATION PROVIDED BY HALLIBURTON ENERGY SERVICES,INC. Job No:AK-XX-0900491711 Well Name: Olson Creek#1—ptsi Survey Report INSITE V7.4.20 Page 4 i • 044,5 MAR 2 1 2014 Olson Creek 1, API#50-283-20171-00-00 Location AOGCC CONFIDENTIAL Depth MD Depth TVD Type of Coordinate Coordinate Surface 0' 0' Latitude, decimal degrees 61.245614 Longitude, decimal degrees -151.136313 Coordinate System Datum: NAD27(NADCON); Ellipsoid:Clarke 1866 TD 5,160' 5,128' Latitude, decimal degrees 61.246493 Longitude, decimal degrees -151.136323 Coordinate System Datum: NAD27(NADCON); Ellipsoid:Clarke 1866 5,715' 5,683' No Directional Survey; survey ended at 5,160'MD • • Olson Creek 1, API# 50-283-20171-00-00 Geologic Markers CONFIDENTIAL Name Measured Depth TVD Beluga 2,861' 2,775' • 0 d CD m 0 J 7/ O F- C) N J w E o• t- o d m C Tri V ' d• N C O O O ti O OA N Z J w CI) Q J Z 0 O 0. Y v G1 y d i 0 U C 0 U) 0 w z 0 z 0 rn O J E O L co ca0 • • Olson Creek 1, API#50-283-20171-00-00 Oil and Gas Shows CONFIDENTIAL Name Measured Depth ND NONE r • Cook Inlet Energy, LLC IL- 1 2014 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501 AOGCC Phone: (907) 334-6745 Fax: (907) 334-6735 DATA TRANSMITTAL Date: March 21, 2014 To: Meredith Guhl From: Barbara Kruk AOGCC Cook Inlet Energy, LLC 333 W. 7th Ave, Suite 100 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 Anchorage, AK 99501 Phone: (907) 279-1433 Phone: (907)433- 3802 FAX: (907) 334 -6735 TRANSMITTAL DESCRIPTION �+Ck1,E Well Data for OlsonCreek#1, API#50-283-20171-00 & OlsonCreek-PB1 API: 50-283-20171-70 In accordance with Alaska Regulations 20 AAC25.537(b), we request that confidentiality be extended to all of the following information Item Qty Description 1 1 Paper Copy - Directional Survey OlsonCreek-1 - 10 pages 2 1 Paper Copy - Directional Survey OlsonCreek1-PB1 -4 pages 3 1 Paper Copy- Lat/Long Coodinates for Surface & Bottom Hole Locations - 1 page 4 1 Paper Copy- List of Fromations and other Geologic Markers Encountered - 1 page 5 1 Paper Copy- List of logs run and depths covered by each log - 1 page 6 1 Paper Copy- List of Oil &Gas Shows - 1 page 7 1 CD - Olson Creek-1 & Olson Creekl-PB1; Date 3/21/14; 9 files; 1.32 MB Directional Survey OlsonCreek-1 & OlsonCreekl-PB1 - 5 files; Format: PDF, ASCII Lat/Long Coordinates for Surface and Bottom Hole- ifile List of formations and other geologic markers encountered - 1 file List of logs run and depths covered by each log- 1 file List of Oil & Gas Shows - 1 file 1 Printout of above listed CD - 1 page 8 1 CD - OlsonCreek-1 & OlsonCreekl-PB1 Date: October 5,2013 Final End of Well Report- Halliburton; Mudlogs- PDF, TIFF, EMF; LAS NOTE: Olson Creek#1 Mudlog should be labeled Olson Creek#1-PB1 depth 5,643'MD Olson Creek#1 PB Mudlog should be labeled Olson Creek#1 depth 5,160'MD 9 1 Paper Copy- Halliburton Surface Data Logging End of Well Report for Olson Creek#1 & Olson Creek#1-PB1; Date: October 5, 2013 9 1 Paper Copy- Mudlogs Olson Creek-1 & Olson Creek-1 PB; 2" - Formation Logs, 2"- Drilling Logs; 2"Gas Ratio Logs Please sign below to acknowledge receipt. Received By: pc) ✓ Date: Returned to Cook Inlet Energy, LLC Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 3 21 14 OIsonCrk1 • _ - .-. r -:.=, { t(1 ar i'I ENE I . U. e. _- ;4 CoN FT� DZ4L , 1 060,roct te,K .4 (I. aura clatti 41i i / 11 , 1 a14- I Aft. 50-a13-07orti-b0•Dp dam; go -a $ , • .totll ?o -ao f Tlklb(4* b " ebliSt.�16 f PUF ISS c=C ' I Files ----NL,,,_,„.., .....-..-,..;_t ___ . ,, ---0.4.t. r .y .. , , Calt_smixT r eiett614----LbA—,01, - i 1 U't %or 0 . , v 0 L 1 ejObloci ,11i `°IC/t3 1, , _ - 1 . , 1 C � �� „.,,,,, f_T---,,,,L , } R/ ?$ ante:600 .1 bisgap - Aft - S• ,DtvAb_ ?of ,104,14c,pat C 110 olsoncrkl_cdl_aogcc.txt volume in drive E is olsonCreekl&PB1 volume serial Number is BOE5-7929 Directory of E:\ <DIR> Directional Logs_lists_OlsonCreekl.pdf Marker_OlsonCreekl.pdf 01 sonCreekl_Locations_nad27.pdf shows_OlsonCreekl.pdf 4 File(s) 36,694 bytes Directory of E:\Directional olsonCreekl-PB_dirsurvey_50283201717000.pdf O1 sonCreeklpBl_dirsurvey.txt O1sonCreekl_CombosurveyReport.pdf 01sonCreekl_dirsurvey.txt O1sonCreekl_dirsurvey_50283201710000.pdf 5 File(s) 1,349,965 bytes Total Files Listed: 9 File(s) 1,386,659 bytes Page 1 RECEIVED • Cook Inlet Ener gY- JAN 2 8 2014 AOGCC January 24, 2014 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Olson Creek#1 Well Completion Cook Inlet Energy, LLC: Olson Creek#1 Permit to Drill No: 212-171 Dear Ms. Foerster, Please find our enclosed 10-407 Well Completion Report for the Olson Creek #1 well. Included is the 10-407 form, drilling summary, wellbore schematic, final directional, and a cementing report. If you have any questions,please contact me at(907)-727-7404. Sincerely, &6,771/ — Conrad Perry Drilling Manager–Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax RECEIVED • STATE OF ALASKA JAN 2 8 2014 ALASKA OIL AND GAS CONSERVATION COMO-SION tOil WELLCOMPLETION OR RECOMPLETION eREPOeRTSAND LO' rq iy 20AAC 25.105 20RJiC 25.110 / la.Well G cc } ❑ ❑ illoO C Development •Exploratory GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 40./q 2.Operator Name: 5. Date Comp.,Sum.,or 12. Permit to Drill Number: COOK INLET ENERGY, LCC Aband.: 10/15/2013 212-171 3.Address: 6. Date Spudded: 13.API Number: 601 W 5TH AVE,SUITE 310 ANCHORAGE,ALASKA 99501 6/25/2013 50-283-20171-00-00 • 4a. Location of Well(Governmental Section): 7. Date TD Reached: 14.Well Name and Number: Surface: 2886'FNL,2620'FWL Sec 6 T13N R1 OW 9/21/2013 OLSON CREEK#1 ' Top of Productive Horizon: 8. KB(ft above M:306.9 15. Field/Pool(s): GL(ft above MSL 291.6 Total Depth: 2561'FNL,2617'FWL Sec 6 T13N R1 OW 9. Plug Back Depth(MD+TVD) EXPLORATION 1,568'MD/1,554'TVD 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TV 16. Property Designation: Surface: x- 299,862.99 y- 2648974.51 Zone- 4 5,715MD/5,683'TVD MHT 9300062 TPI: x- y- Zone- 11.SSSV Depth(MD+r 17. Land Use Permit: Total Depth: x- 299866.73 y- 2649295.74 Zone- 4 N/a MHT 9300062 18. Directional Survey: Yes ✓j No ❑ 19.Water Depth, if Offshc 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: ft.I.U.14(45,5 oiitj j(,t.CT 21IA(t6, 1,699'MD/1,680'TVD 23. V l 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 10 3/4" 45.5# L80 0 157' 0' 157' driven N/A N/A 7 5/8" 29.7# L-80 0 1,998' 0 1,971' 9 7/8" Lead slurry 13.5ppg NONE 109bbIs/330sacks Class G cement/Tail slurry Class G cement 15.8 ppg 40bbls/200 sacks 24.Open to production or injection? Yes ❑ No a . 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): N/A l /,DL ) 26. ACID, FRACTURE,CEMENT SQUEEZE, ETC. 111LL -- Was hydraulic fracturing used during completion Yes H No U VE DEPTH INTERVAL(ry AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST la - • - •• ction: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for ! :• as-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Pe Flow Tubing - - s: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: • . : • - •PI (corr): - . 24-Hour Rate - 28. CORE DATA Conventional Core(s)Acquired? Yes ❑ No\2 Sidewall Cores Acquired? Yes ❑ - No E 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 25.07' PBD; S MAR 2 1. 14 - Form 10-407 Revised 10/2012 7,4_, 6, 3 /1 CONTINUED ON REVERSE 'Y/y:1 cAJly Submit original onl • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? fYes 0 If yes, list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form, if needed, Permafrost-Top and submit detailed test information per 20 AAC 25.071. Permafrost-Base Insufficient log data to make formation top picks eJ. 2 g(01 2(2alfb Formation at total depth: 31. List of Attachments: 10-407,wellbore schematic,drilling summaries,directional 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Courtney Rust Email: courtney.rust @ cookinlet.net Printed Name: Conrad Per - ' Title: Drilling Manager Signature: Phone: 907-727-7404 Date: 1/24/2014 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 • • RECEIVED JUN 872014 Olson Creek 1, API# 50-283-20171-00-00 Geologic Markers AOCDC CONFIDENTIAL Name Measured Depth TVD Beluga 2,861' 2,775' dRON CREEK#1 10-10-13 0 One joint of 2 7/8"Tubing& , one pup joint below the hanger.Freeze protected with diesel. i , ' -. L 10 3/4" L80 157'MD 45.5# Driven 157'TVD 50'Dump Bailed Cement ' # .-" '3. ' Cement Retainer @ 250' ,�h Olson Creek#1 LOST IN HOLE: 101 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" . 6 ea steel DC 4 3/4" • 3 ea flex collars • TM HOC Float Sub Stab Mud motor Bit TOC @ 1,568' t Cement Plug From 1,900'to 1,568' Whipstock @ 1,699'MD/1680'TVD : Bridge Plug @ 1,711' « = . *. '� 9 7/8"hole to 2,049' ', f ' 7 5/8"29.7#L80 LTC @1998' TOF rd,2,101' TOF @ 2,308'MD/2242'TVD i' i 4 1/2"Drill pipe Fish/motor/jars Li° "i Lt \ . 10 Olson CreeklMal��l t_ j / LOST IN HOLE: rt$K 89 Jts Alum DP f 3 ea Steel DP XO 2 Steel DC 4 3/4"Jars 9 ea steel DC 4 3/4"Float Sub I Stab Mud Motor 6 3/4"hole Bit I TD @D S"7(6—. 6 3/4"hole TD @ 'MD/5,683'TVD 54 'y3 • • Date Summary 6/5/2013 Prep location, receive barges 6/6/2013 Pre Spud meeting in Anchorage, more site prep, received mud pumps 6/7/2013 Kraxberger Drilling set the well conductor at depth of 157'. Kraxberger moved over and set up to drill the water well. 6/8/2013 Site prep, Kraxberger drilled to 255' and located a sandstone from 235' to 255'. Set casing at 235' with 20' of sandstone 6/9/2013 Prep Location, moving equipment, receiving barges 6/10/2013 Prep Location, moving equipment, receiving barges 6/11/2013 Prep Location, moving equipment, receiving barges 6/12/2013 Prep Location, moving equipment, receiving barges 6/13/2013 Prep Location, moving equipment, receiving barges 6/14/2013 Prep Location, moving equipment, receiving barges 6/15/2013 Prep Location, moving equipment, receiving barges 6/16/2013 Prep Location, moving equipment, receiving barges 6/17/2013 Prep Location, moving equipment, receiving barges 6/18/2013 Prep Location, moving equipment, receiving barges Nipple up spacer spool on top of bag, install flow nipple and m/u flow lines, m/u cat 6/19/2013 walk w/ diverter line, continue rigging up checking power to rig components, begin berming front of rig 6/20/2013 6/21/2013 Rig up mud lines, pump PSVs, rotary hoses, flowlines, safety items, secured diverter with cement blocks. 6/22/2013 Rigging up equipment, AOGCC witnessed Diverter function test. PVT failed. Rack & strap BHA. Rack drill pipe. Clean threads. 6/23/2013 Prep and repairs, Finished with items flagged by the AOGCC inspector. PVT now 100% functional. 6/24/2013 Equipment prep, mixing mud products, waiting on tools. Pick up BHA# 1. Tag up at 160'. Pick up drilling connections - Kelly valve & cross overs 6/25/2013 Circulate. Commission circulating system & pumps. Increase pump rate as dictated by shaker. Drill from 157' to 206' 6/26/2013 Drilling from 216' to 231' 6/27/2013 Repairs to equipment 6/28/2013 Drilling from 231' to 413' 6/29/2013 Drill from 413' to 504". Survey tool was incorrect, new deviation at 1 degree. 6/30/2013 Ream 30' to bottom. CBU with sweep. Good results - hole clean. Survey at 504'. Recorded 4 deg deviation. Drill from 564' to 898' 7/1/2013 Drilling from 898'to 1014'. recorded 8 deg Drilling from 1014' to 1194' 7/2/2013 Drill from 1190'-1554'. 14 deg deviation at 1464' 7/3/2013 Drill from 1554'-1852' • 0 Date Summary 7/4/2013 Drill from 18521-2049'. CBU 4 times. Circulate and work 17041-1583'. Back ream out of hole from 1583'-1314' 7/5/2013 POH. LD HWDP, LD BHA, RU to run 7 5/8" casing Run Casing, PU hanger. Circulate at 450 GPM, mix 31 bbl 10#Seal Bond spacer. Pumped 31 bbls Seal Bond Spacer at 10 ppg. - dropped bottom plug, pumped 1.5 bbls water and tested lines to 500- 2500. Pumped 98 bbl lead CMT at 13.5 ppg followed by 7/6/2013 38 bbl of 15.8 ppg tail CMT, Released top plug and displaced with 91.8 bbl mud. Full returns w good cement. RD Baker Hughes. Pull landing joint. Set Ge Oil & Gas 7 5/8" pack off in well head. Test to 5M for 15 minutes. Good test. RD cat wak, pipe slide & diverter. 7/7/2013 ND/NU, dress stack with 4.5" rams. 7/8/2013 RU for BOPE test.RU test joint. Set test plug. RU flow nipple. Conduct in house BOPE test. Repair leaks. Good test. Set stairs & landings. Set pipe slide. Set wear bushing. 7/9/2013 RIH open ended drill pipe. Tag up at 1890'. Circulate at 280 GPM. POH with open ended DP. 7/10/2013 POH. BOPE Test Cont BOPE test. Pull Test plug and wear bushing. Strap/ Caliper BHA, R/U to handle BHA components, RIH w/ BHA to circulate clean rust/scale from I.D. Break circulation 7/11/2013 w/ Mud Pump #1 and #2 to diagnose harmonic balance and flush I.D. of BHA. Set up elevators, ect and POH L/D BHA. JSA before P/U BHA#2. Begin P/U BHA: Drill bit and Mud Motor Assy. Test MWD Tool with Mud Pumps, continue P/U BHA PJSM: Continue RIH w/ BHA and Bit#2 to 1890', R/U to Circ, tagged firm cement at 1893'. Break Circ, Drill Cement f/ 1893' t/ 1920' (Landing Collar at 1920'). PJSM: review Drilling/tripping Well Control drills. Rig up and conduct 7 5/8" csg. Pressure test at 7/12/2013 3000 psi for 30 mins on pressure recorder graph. (Good Test). Drill out Landing Collar f/ 1920' and continue drilling out cement (shoe track) t/ 1998' , drill out shoe. Drill Rat Hole Cement f/ 1998' t/ 2049'. Drill new hole f/ 2049' t/ 2069'. CBU. Pull bit inside shoe, M/U side entry pump in sub and floor valve. Begin Circ/ Conditioning Mud down hole /Active Pit system Condition mud. PJSM w/ BJ, IDA and CIE. Conduct F.I.T. / L.O.T. Blow down lines, 7/13/2013 realign choke valves. Build Volume in mud pits f/ 150 bbls to 350 bbls, Repair RPM sensor, review and M/U tour Kill Sheet. Circ/Wash to Bottom at 2069'. Rotate and Slide Drilling f/ 2069' t/ 2207', periodically documenting SPR's 7/14/2013 Rotate/Slide F 2207-2560' 7/15/2013 Rotate/Slide F/2560'-2823' 7/16/2013 Rotate/Slide F/2823'-2950' 7/17/2013 Rotate/Slide F/2950'-3305' 7/18/2013 Rotate/Slide F/3305'-3755' CBU for short trip and BOPE test • • Date Summary POH back reaming from 3755' to 3525'. Checked for flow. Well static. Set Halliburton storm packer 30' below the rotary table for weekly BOPE test. Pull wear bushing. Set 7/19/2013 test plug. BOPE test. AOGCC witnessed. Pull test plug. Set wear bushing. Make up Halliburton storm packer retrieving tool. Finish changing pony rods, pistons & liners in both mud pumps. Wash down into storm packer. Engage packer. Lay down storm packer. Commission mud pumps. RIH to 2100'. RIH. Wash through bridge at 2973' to 3003'. Continue RIH to 3542'. Wash & ream from 3542' to 3700'. Circulate & reciprocate at 3700'. Shakers blanking off. Blend in new mud dilution. Wash to bottom. Circulate & reciprocate from 3727' to bottom at 3755'. Circulate and allow the mud to gain heat, shear the polymer and for the Baro-Trol to go into solution or be 7/20/2013 removed by the shakers. Lay down one single of drill pipe and continue circulating at 180 gpm. Run steam into flow line at shaker. Continue running steam into the mud & circulating at the maximum capacity of the shaker. Lay down one single of drill pipe. Circulate 3663' to 3693'. Lay down 1 single of drill pipe. Circulate while working pipe from 3633' to 3363. Mud still improving, circulating at 230-250 gpm. Mud in good shape RIH to 3755'. Drill from 3755' to 3813' 7/21/2013 Rotary Drilling from 3813 ' to 4496' without sliding. Rotary Drilling F/4496'-4696'. Work tight area 4696'-4666'. Wash and ream hole to 4598'. Backream and wash out of hole to 4250'. Packing off at 4250'. At 4250 Gain 7/22/2013 good circulation at 320 gpm, 1050 psi rotate & clean the hole. Shakers loaded up with coal. Mix & pump Lub pill. Back reaming against the tight area, pumped lube sweep 4249' - 4219'. 7/23/2013 Back ream out of the hole to 2013'. Circulated BTMs up at shoe. LD drill pipe from 2013' to 423'. Found washout in last 7/24/2013 joint of drill pipe. LD BHA. RD Atlas Copco. Pick up mud motor. Set mud motor bend at 1.22 deg LD mud motor. Pull wear bushing, set test plug. Test BOPE, 250 low 3000 high. Test BOPE. Pull test plug, set wear bushing. Pick up BHA#3. PU 4 1/2" DP, RIH to 7 5/8" 7/25/2013 shoe. CBU. Wash and ream f/2010'-2195'. RIH w/o pumping or reaming f/2195'-3785'. While filling Drill Pipe at 3785' became stuck, work drill pipe, able to circ. Pump 7% Drill and Slide Lubricant pill around Drill Collars. Cont. working drill string. i • Date Summary Continue working Stuck Drill String, Bit depth 3785'. While working stuck drill string, mix 35 bbl Black Magic fishing pill: 40 sx black magic, 35 bbls of Diesel, 7 1/2 bbls of fresh water and 65 sx of Barite, allow to blend PJSM, pump 25 bbls of Black Magic on 7/26/2013 out side of Drill String= 2722' = 550' above BHA. Left 10 bbls of pill inside Drill String. 25 bbls of pill on annulus side at 1630 hrs. Begin pumping intervals of lbbl each hour When 100% of pill is outside drill string top of pill est. 2322' = 324' from 7 5/8" csg shoe. Continue working stuck Drl. String, 35 bbls of Black Magic pill is outside drill string top of pill est. 2322' = 324' from 7 5/8" csg shoe. Work pipe. Replace "top" aluminum Drill Joint with Steel Joint after working pipe down hole excessively. Continue allowing 7/27/2013 Black Magic" pill to soak, (Note: at 0430 hrs Sunday pill will have soaked 24 hrs), while continuing to Paint pump sheds, rig maintenance and adjust flowline to flow nipple Pump top of Black Magic pill to 7 5/8" shoe, periodically working drill string, appears drill string has slipped 18" down hole. Changed oil in #2 pump motor, continue painting, rig maintenance. Continue working stuck Drl. String, 35 bbls of Black Magic pill is outside drill string top of pill est. 1998' 7 5/8" csg shoe. Continue SLM & Rabbiting 5 1/2" Csg, c/o oil filters on Mud Pump #2 engine. Remove flow line from flow nipple, turn flow nipple 3" to right, 7/28/2013 cut flow line 2" reattach flow line to flow nipple. Clean out cuttings. PJSM: Begin mixing 1st batch of B.M. Pill (38 bbls) at 9.5 ppg, work Drill Pipe 20K down and 20K up as per Fishing Tech. Spot Black Magic pill with 2370 strokes. Continue allowing Black Magic Pill to soak, work Drill String periodically, pumping 1/2 bbl/hr. 7/29/2013 Allowing Black Magic Pill to soak. Rig maintenance. Work Drill String periodically. Continue allowing Black Magic Pill to Soak, Top of pill at 7 5/8" inside Shoe at 1998', pump 1/2 bbl / hour, Work Drill String. L/D top drill pipe joint and replace with Drilling Mechanical Jars set for 65K up, 32K down. LD Equipment. R/U Pollard E-line to conduct 7/30/2013 Free Point" procedure. Hang sheave from Crown, make up lubricator into 2" NPT connection at Power head Goose neck, check reading at surface and zero RKB. RIH with E-line Free Point tool taking free point checks as RIH with Driller picking up / slacking off as directed Free Point found at 1900', come out of hole, lay down free point tool. Pick up string shot make up with 320 grains. RIH w/ strg shot back off @ 1890' (WLM) w/ 3/4 turn to left wk pipe 50K up 20K dn. After shot 20K weight, POH & L/D E-Line equip. L/D Jars and Prep to L/D Drill Pipe String. L/D 63 joints of Drill Pipe = 1890' = 46 Jts of Drill Pipe = 1382' left in hole w/ 7/31/2013 513' of BHA. Top of BHA = 3272'. Clean rig floor of Black Magic residue, R/U to test BOPE. Test BOPE. Cut bands off of power head assembly, break out saver sub, upper well control valve and xo. Drain oil, remove brake caliper and cover plate, lay derrick over, break out swivel packing to inspect spindle and jam nut, Jam nut treads stripped due to jarring. 411, i Date Summary 8/1/2013 Wait on parts to repair Atlas Copco drive head. 8/2/2013 Work on Atlas Copco drive head. 8/3/2013 Work on Atlas Copco drive head. Make up drilling tools to lower spindle, lower kelly valve etc. Make up fishing BHA Pick up fishing tools with Cut Lip Guide, Screw In Sub, Jars. Bumper Sub, DCs and Accelerator Jars. RIH with drill pipe. Take returns to trip tank of black magic pill. Tag 8/4/2013 TOF at 1892'. Engage fish at 1892'. Work bumper sub hitting down on fish. Cont to work fish. Pipe free and able to rotate. Circulate & work tight area from 3770' to 3800'. Back ream out of the hole from 3770'. Bit Depth 3512'. Tighten & strap weld connection below drive head quill. Back ream out of the hole from 3512' to 2248'. 8/5/2013 Back ream out of hole from 2248' to 2010'. CBU below the shoe. LD Fishing tools with DC. LD DP fished out of hole. LD BHA. Weekly BOPE test. Test BOPE. Pick up BHA # 3 with bit# 2RR2. Rig down elevators etc. Shallow hole test 8/6/2013 MWD with BHA in the hole. RIH & fill drill pipe at 1985'. Rack & inspect drill pipe. Ream in the hole from 2012' to 2282'. Continue reaming in the hole from 2282' to 2642' Ream in the hole from 2642' to 3782'. Work tight and high torque area at 3782'. Ream in from 3782' to 3920'. Clean up tight area at 3920'. Ream in the hole from 3920' to 8/7/2013 4232'. Repair block height & rotary speed indicators. Ream in the hole from 4232' to 4682'. Mix and pump 15bbl. weighted sweep and circulate bottoms up at 4682', Sweep returned with Slight increase in cuttings. Drill F/4697' to 4722' Rotary and Slide drill from 4722' to 5082'. Rotary drill f/ 5082' t/ 5284'. Circ slow move 8/8/2013 with one mud pump, work drill string while working on Mud Pump # 1, C/O Liner wear �✓ plate and gasket. Rotary drill f/ 5284' t/ 5350' 8/9/2013 Drill ahead F/5,350'-5,643'. Made connection at 5,643' and became stuck. Work string to get free. 8/10/2013 Attempt to work drill string with jars. Rig up Free Point Tool. Locate free point at 2,092'. Made decision to back off at 1,960', 33' inside of 7 5/8" casing shoe. 8/11/2013 RIH with Fishing assembly to 1,950' and work to free fish 8/12/2013 Pump 90 bbls of Black Magic pill. Pump 1/2 bbl every hour and work pipe. 8/13/2013 Work fish while letting Black Magic pill soak around stuck pipe. Work stuck fish with Fishing Jars. Spot carbide pill and monitor returns. Continue 8/14/2013 working pipe. RIH w/ E-Line Free Point assembly. Pump @ 200spm to clean up. Set down 1782'. POH / RIH w/ 1-7/16" tool t/ 2000' and POH. RIH w/ Free Point Tool t/ 1782', hit restriction in 4 3/4" D.C.s. POH. 8/15/2013 Work pipe and pump Black Magic pill, weight up to 9.8 ppg. Pump 1/2 bbl every half hour while working pipe. 8/16/2013 Work pipe and pump 1/2 bbl every half hour while working pipe up and down. 8/17/2013 Work stuck fish (top of fish - 1950') • • Date Summary 8/18/2013 Attempt to work stuck fish w/jars and by applying R/H torque. Unsuccessful. 8/19/2013 Work on upper power head, dress threads and prep to reinstall nut. 8/20/2013 M/U fishing assembly and RIH to 1950' and engage fish. Work fish while cutting MW back w/centrifuge and desilter. 8/21/2013 Continue working fish and decreasing MW to 9.6 ppg. R/U Free Point Tool and RIH. 100%free at 2253'. Back off at 2097' for SIT and POH. 8/22/2013 RIH w/ 2-7/8" stinger for setting balanced plug. Tag TOF at 2101', POH to shoe and CBU. RIH to 2101' and CBU. R/U cementers for balanced plug. Pump cement per plan w/ 8/23/2013 19.4 bbls of 17.1 ppg cement. CIP at 1900 hrs. POH to 1585' and CBU. (Estimated TOC - 1685') POH w/stinger, LID tools and M/U clean out assembly. RIH w/6-5/8" junk mill & 7- 8/24/2013 5/8" casing scraper. Tag firm cement @ 1918'. CBU and POH to set packer & whipstock. RIH w/ anchor pac<erand set at 1711'. POH and R/D E-line equip. Test BOPE. M/U Whipstock assembly and RIH to 1708'. Orient to 82 degrees and set 8/25/2013 w/top of 7-5/8" whipstock at 1699'. Mill window F/ 1699' - 1714', confirm window, � and 2' of formation. POH, LID whipstock BHA. � r�'; POH and L/D BHA. P/U directional BHA and RIH to mill window. Could not work 151,gl S1tb 8/26/2013 through window. POH F/ mill assembly. LID directional and P/U mill assembly. RIH to jfr 1699'. 6 44,i‘ RIH w/ mill assembly to 1708'. Mill F/ 1699' - 1714'. Drill new hole F 1714' - 1728'. Perform FIT to 14 ppg EMW. Drill w/ mill assembly F/ 1728' - 1740'. Confirm no issues 8/27/2013 w/window and POH for directional BHA. L/D mill assembly and P/U directional BHA. 8/28/2013 RIH W/ directional BHA to 1740'. Rotate and slide F/ 1740' - 2109'. Decrease in pump pressure, possible wash out. CBU and POH looking for wash out. 8/29/2013 POH and L/D directional BHA. M/U new BHA and RIH to 2109'. Rotate and slide ahead F/ 2109' - 2214'. 8/30/2013 Rotate and slide F/ 2214' - 2634'. 8/31/2013 Rotate and slide F/ 2634' - 3027'. Drill F/3027'-3135'. CBU. Circ and Backream to 1840'. POH w/o rotating through window. Stop at 1550' Check for flow. Static. PU RTTS packer for BOPE test. Pull wear 9/1/2013 bushing. R/U test equipment. Test Annular t/ 250 - 1500 psi. Test pipe rams, floor, dart, and Kelly cock valves, 2" demco, inside and outside kill valves, HCR, and manual 3" valves, CMV's 1,2,5,6,7,8,9,10,11,12. t/ 250- 3000 psi. • Date Summary Test blind rams, and CMV's 3,4 t/250- 3000 psi. Koomey Performance test. RID test equipment and install wear bushing. RIH and retrieve RTTS Packer. POOH and L/D 9/2/2013 SSCV and RTTS Packer. Pump dry job and POOH with 4 1/2 steel drill pipe. Pick up pipe & RIH to above the whipstock at 1632'. Fill pipe. RIH. Passed window without problem. Wash through coal at 1802'. Filled pipe periodically. Wash 12' of fill off of bottom. Circulate. 115 units of trip gas. Drilling ahead from 3135' 9/3/2013 Drill f/3258' t/ 3344'. Change out bit and mud motor P/U BHA. Shallow test MWD @ Jars and check pump pressures. Finish RIH w/ BHA. R/D bails and elevators. RIH w/steel DP t/ 1745'. Fill pipe check 9/4/2013 pump pressures. RIH t/ 2700'. RIH to 2950'. Circulate & clean up area at 2950. Drill ahead from 3344' to 3725' Drilling from 3725' to 3907'. Circulate at bottom 3907'. Mix & pump hi vis 20 bbl sweep 9/5/2013 with 10 ppb walnut & 10 ppb Barafiber. Check for flow. Well static. Short trip f/ 3907' t/ 1745'. Circ hole clean pull into window t/1685'. RIH t/ 1775' Circ and condition mud. POH t/ 1625'. Pick up 3 joints and RIH to 1740'. 9/6/2013 Pressure test Swivel Packing to 1200 psi, (Good Test). RIH f/ 1740', fill drill pipe at 2700', 3145' and 3500' keeping pipe moving. RIH t/3755'. Wash and ream f/3755' t/ 3907' CBU. Drill f/3907' t/3997' Drill f/3997' t/4120'. ( Pump 15 bbls Hi-Vis sweep 10 ppb nut plug and 10 ppb barafiber @ 4120' 100% increase in cuttings ). Pump 15 bbl of a 30 bbl Hi-Vis sweep, nut plug & Barafiber @ 4120', observed 100% increase in cuttings. Continue Rotate 9/7/2013 Drilling f/4120' t/4175'. Pumped last remaining 15 bbls of the 30 bbl Hi-Vis Sweep, observed minimal cutting returns, (Hole Clean). Continue Rotate Drilling f/4175' t/ 4372'. 30 bbl Hi-Vis Sweep, w/ Nut Plug/ Barafiber had been "previously mixed", pumped 15 bbl pill. Back ream and pump POH Continue back reaming/ pumping POH. Pumped remaining 15 bbls from previous 30 bbl Hi-Vis Sweep, observed 100% increase in cuttings. Continue back reaming/ pumping POH t/ 1750'. Pump 15 bbl Hi-Vis Sweep to clean cuttings from hole & casing 9/8/2013 before setting Halliburton 7 5/8" Storm Pkr. POH without pumping to 1660'. Make up Halliburton Storm Packer and set 60' below surface, back out of packer. Lay down Joints. Rig up to test BOPE: Hydril Bag F/ 250 T/ 1500 psi, test BOPE f/250 t/ 3000 psi. Test "BOPE": Hydril Bag f/ 250 t/ 1500 psi, test BOPE f/ 250 t/ 3000 psi, Observed washout on Saver Sub, C/O 9/9/2013 Test BOPE, work on failed hydril, make repairs and re-test with good test. RID BOP test equipment. 9/10/2013 RIH w/ new BHA. Attempt to start mud pump #2. Would not start. Work on MP #2. 9/11/2013 Complete repairs and RIH to 4,372'. Drill ahead F/4,385' - 4,568'. 9/12/2013 Drill ahead F/4,568' - 4,871'. 9/13/2013 Drill ahead F/4,871' - 5,042'. 9/14/2013 Drill ahead F/ 5,042' - 5,253'. POH to 4,210' due to leak in swivel packing area. • • Date Summary 9/15/2013 POH F/4,210' - 3,965' while working tight spots and pack off issues. Weight up to 9.6 ppg and CBU while increasing pump rates. Continue to POH. 9/16/2013 Back ream out of hole F/4,235' - 2,665'. Back ream out of hole F/ 2,665' - 1,775'. L/D steel drill pipe. Stop at BHA, flow check, 9/17/2013 and set storm packer at 57'. R/U for BOPE test. Test BOPE, AOGCC Waived witness. 9/18/2013 Repair wash pipe & swivel packing. Release storm packer. L/D BHA and M/U new BHA. RIH w/ new BHA. 9/19/2013 RIH to 1,708'. Wash and ream F/ 1,708' - 5,253'. Drill ahead F/ 5,253' - 5,265'. 9/20/2013 Drill ahead F/ 5,265' - 5,510'. 9/21/2013 Drill ahead F/ 5,510' - 5,715'. Saw loss of string weight and pump pressure. POH and confirmed twist off. Top of fish at 1,711' with bottom of fish at 4,004'. Wait on fishing crew and equipment. M/U fishing assembly. RIH w/ assembly to 1,713' 9/22/2013 and tag fish. Engage fish and POH. Tight spot at 5,438'. Attempt to work down while pumping sweep to clean up hole. Unable to get free. Arm string shot and RIH to1492'. Back off and POH w/string shot. P/U fishing 9/23/2013 assembly and RIH. Engage fish at 1491' and attempt to work free, unsuccessful. Pressure loss, check all surface equipment for problems. 9/24/2013 R/U e-line and RIH w/string shot to 1551. Make shot and POH. L/D fishing assembly. R/U BOP Testing equipment and perform BOP test. 9/25/2013 Test BOPE. R/D test equipment and prep to P/U BHA. RIH W/ Fishing BHA and screw in to fish at 1,551'. Mix up black magic pill and spot in open hole. 9/26/2013 Continue mixing and displacing black magic pill at 1/2 bbl per hour in open hole. Remove damaged power head and stage. 9/27/2013 Pump black magic pill in 1/2 bbl increments over fish. Dress new power head and install hydraulic motor and H/U hoses. Finish Atlas Copco drive head install. Work pipe and attempt to free stuck pipe with 9/28/2013 out success. Continue pumping black magic pill at 1/2 bbl per hour increments. Work stuck pipe. R/U free point tool and determine stuck pipe at 2,320'. Displace 9/29/2013 black magic from hole. Work stuck pipe and CBU 2X. Run free point tool and confirm same depth stuck at 2,320'. Run string shot and back of DP at 2,308'. POH to 2,302'. Continue to POH to 1,652'. 9/30/2013 POH and L/D DP and cut lip guide. Top of fish at 2,302'. RIH W/open ended DP to 1,920'. R/U cementers and pump 20 bbls of 13.5 ppg cement. POH. P/U 6-3/4" bit and RIH 995'. WOC. RIH to 1,900' w/o tagging cement. Circulate out 10/1/2013 contaminated mud. POH and L/D BHA. RIH w/ DP to 1,800'. Wash down F/ 1,800' - 2,070'. • i Date Summary Wash down to 2,100'. CBU and R/U cementers. Pump 23.6 bbls of 13.5 ppg cement. 10/2/2013 POH and LID cementing equipment. R/U for BOP test. Test BOPE. RIH w/ 6-3/4" bit to 1,050'. Wash down to 1,500' with no cement. POH to 1,400' and CBU. WOC. s WOC. RIH to 1,500' and wash down to 1,785'. Tagged cement and CBU. POH. M/U 10/3/2013 cement BHA and RIH to 1,690'. Tag TOC at 1,780'. R/U cementers and pump 23.6 bbls of 13.5 ppg cement. POH to 785' & WOC. Circulate at 785' while WOC. RIH to 1,564'. CBU and WOC. Continue to RIH to 1,568'. 10/4/2013 Tag cement. Top of Cement at 1,568', 131' above window. Test 7-5/8" casing to 1,500 psi, good test. Witnessed by AOGCC. �� ,� 'LS-z' POH and L/D DP. R/U Pollard E-Line unit and bailing assembly to bail cement. Dump 10/5/2013 bail 50' cement F/ 250' - 200'. Pump out cellar, drain stack, and pull wear bushing. M/U 1 joint of 2-7/8" EUE on pup and tubing hanger and land hanger. N/D wing and swab valves from tree. Install 2 way check valve in tubing hanger. Flush mud lines. Nipple down BOPE. N/U tree and test void to 5,000 psi for 10 10/6/2013 minutes. Test tree to 5,000 psi for 10 minutes. Pull 2 way check valve. Freeze protect well with 1.5 bbls of diesel. Continue to rig down equipment. 10/7/2013 Cont RD equipment. LD mast unchain and drive. 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N N N C ; 0 Q C it C N O Q ~ Q O Q = ca, II O O (O M CO Q) C O O O O O C r co co r CO 0 N O O O ) 1 O w lt L 1c0dd 7 N d CO d 3 (Q d y My v 11 Q CO ° .� Is E y d N NM 0 76 Q a ? = m amil 42)) 0 0 D o o '� h tq a)r c O o0 00o y (0 y m ✓ o 0 0 0 0 y V p F o n r o 4c yCy CO CO 00 N I 0 • • own o (i) 0 O 0 0 Cle0 O 0 r- Co N O O M co h N N 1•- 3 N 3 X CO • -O `y C U) o cn 7 N • U o E 3 O E N M N N 3o O O C NIO O ri o N z o w z o 3 0 4 = cn 4# v 0 "5" O a a 0 ci T CC 0 NO L � O N VO N O Q z o Ce 6 Q N Qa► N 0 • 0 A _\2 (/ % U 2 a § Q /2 cy co 29k6cv co /} $\/s = ,- ,- w » } _ƒ 7% % CD0Ea 22G § ® 2 )k/ k7 § mak $ / f0/ -2 t % \ #m ° ° 7fE ii t �f §§ a \If ) / \_\_ /k &)z) 7/) 2| / j/7 /{_ O / f & tf/ bB\ J > 3 2 $ l Ill cn ci\ / co & C % § } , ƒ / 0 \ ( N / a \ ■ : 0 2 U -a = \ o 2 = / - c k - & (0 § 2 .9 .2 / } 7,5 § \ / $ \ \ 0) ( a / 6 - ; 0 0 a 2 — 2 - r - z - \ \ 2 ra - � � � cd 13 ` ' � I., } / ) \ 2 } _ \ \ } a ° $ \ i ® } / { c \ k \ o \ k § ( 2 CO , § Q. ° ® o @ xi- x-- 0:1 2 { - _ ® ° ° } \ \ E \ a _ R - k f \ / 3 ( ® ` / / ; ) / / [ � } § TI mila re _ \ E ) f - 3 / la ) 3 # §_ § ® \ / k ® _ a 4 t ] ) - 7 i 3 k 3 0 = f f t { / 2 0 0 7 ( I Z 7 > j / 3 2 606 3 / • • Cook Inlet Energy,LLC CASING&CEMENTING REPORT Lease&Well No. Olson Creek#1 PTD:212-171 Date: #414l# County Kenai Borough State AK Supv. Cook Inlet Energy CASING RECORD-Surface casing TD 5,715MD/5,683'TVD Shoe Depth: 1,996'MD PBTD: MD/ND Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top float shoe 7 5/8" 29.7 P110 LTC Weatherford 1.60 1,998.00 1,996.40 2 7 5/8" 29.7 P110 _ LTC 74.17 1,996.40 1,922.23 float collar 7 5/8" 29.7 P110 LTC Weatherford 1.29 1,922.23 1,920.94 46 7 5/8" 29.7 P110 LTC 1,900.11 1,920.94 20.83 Pup 7 5/8" 29.7 P110 LTC 3.20 20.83 17.63 Hanger 1.50 17.63 16.13 Totals 1,981.87 Csg Wt.On Hook: 65 K Type Float Collar: Float No.Hrs to Run: 8 hrs Csg Wt.On Slips: 60 K Type of Shoe: Float Casing Crew: Wfd Fluid Description: 10.2 ppg WBM /Spud Mud / PV=41 YP=54 HTHP=0 Liner hanger Info(Make/Model): N/A Liner top Packer?: Yes X No Liner hanger test pressure: N/A Centralizer Placement: 1 on first three jts.1 on every fourth jt.From#6-#44 CEMENTING REPORT Preflush(Spacer) Type: Sealbond Spacer Density(ppg) 10 Volume pumped(BBLs) 31 Lead Slurry Type: Class"G"cement blended Yield(Ft3/sack): 1.86 Density(ppg) 13.5 ppg Volume (BBLs/sacks): 109 bbls/330 sacks Mixing/Pumping Rate(bpm): 2.6 Tail Slurry Type: Class"G"cement blended Yield(Ft3/sack): 1.15 1.61 Density(ppg) 15.8 ppg Volume (BBLs/sacks): 40 bbls/200 sacks Mixing/Pumping Rate(bpm): 3.2 bpm N Post Flush(Spacer) Type: Density(ppg) Rate(bpm): Volume: LL Displacement: Type:Water based mud Density(ppg) 9.5 ppg Rate(bpm): 4.2 bpm Volume(actual/calculated): 88.4/91.8 FCP(psi): 500 psi Pump used for disp: Cement Pump Plug Bumped? _Yes X No Bump press NA Casing Rotated? Yes x No Reciprocated? x Yes _No 100%Returns during job Cement returns to surface? X Yes _No Spacer returns? X Yes_No Vol to Surf: 21 bbl cmt/31 bbl spacer Cement In Place At: 14:32 Date: 7/5/2013 Estimated TOC: Method Used To Determine TOC: visual Preflush(Spacer) Type: Density(ppg) Volume pumped(BBLs) Lead Slurry Type: Yield(Ft3/sack): Density(ppg) Volume (BBLs/sacks): Mixing/Pumping Rate(bpm): Tail Slurry w Type: Yield(Ft3/sack): a Density(ppg) Volume (BBLs/sacks): Mixing/Pumping Rate(bpm): N Post Flush(Spacer) 0 o Type: Density(ppg) Rate(bpm): Volume: iiiN Displacement: Type: Density(ppg) Rate(bpm): Volume(actual/calculated): FCP(psi): Pump used for disp: Plug Bumped? _Yes No Bump press Casing Rotated? Yes _No Reciprocated? _Yes No %Returns during job Cement returns to surface? Yes _No Spacer returns? Yes No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: Remarks: p:2tZ - 11I ' i4ss RECEIVE Cook Inlet Energy, LLC NOV 14 2013 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501 AOGCC Phone: (907) 334-6745 Fax: (907) 334-6735 DATA TRANSMITTAL Date: November 12, 2013 To: Howard Okland From: Barbara Kruk AOGCC Cook Inlet Energy, LLC 333 W. 7th Ave, Suite 100 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 Anchorage, AK 99501 Phone: (907) 279-1433 Phone: (907)433 - 3802 FAX: (907) 334 - 6735 TRANSMITTAL DESCRIPTION Well Data for Olson Creek #1 & Olson Creek#1-PB1 Well In accordance with Alaska Regulations 20 AAC25.537(b), we request that confidentiality be extended to all of the following information. Item No. Qty Description Data for Olson Creek#1 API: 50-283-20171-00-00 1 Wet Samples 1 Box 1 of 8 -Wet Samples Interval depths (270'-300') - (1020'-1050') @ 30' qty 25 1 Box 2 of 8 -Wet Samples Interval depths (1050'-1080') - (1590'-1620') @ 30' qty 19 1 Box 3 of 8 -Wet Samples Interval depths (1620'-1650') - (2340'-2370') @ 30' qty 25 1 Box 4 of 8 -Wet Samples Interval depths (2370'-2400') - (3120'-3150') @ 30' qty 26 1 Box 5 of 8 -Wet Samples Interval depths (3150'-3180') - (3180'-3840') @ 30' qty 23 1 Box 6 of 8 -Wet Samples Interval depths (3840'-3870') - (4590'-4620') @ 30' qty 26 1 Box 7 of 8 -Wet Samples Interval depths (4620'-4650') - (5220'-5250') @ 30' qty 21 1 Box 8 of 8 -Wet Samples Interval depths (5250'-5280') - (5670'-5700') @ 30' qty 15 1 Dry Samples 1 Box 1 of 6 - Dry Cuttings samples Interval depths (270'-300')- (1320'-1350') © 30' qty 35 1 Box 2 of 6 - Dry Cuttings samples Interval depths (1350'-1380') - (2310'-2340') © 30' qty 33 1 Box 3 of 6 - Dry Cuttings samples Interval depths (2340'-2370') - (3270'-3300') © 30' qty 32 1 Box 4 of 6 - Dry Cuttings samples Interval depths (3300'-3330') - (4080'-4110') © 30' qty 27 1 Box 5 of 6 - Dry Cuttings samples Interval depths (4110'-4140') - (4980'-5010') © 30' qty 30 1 Box 6 of 6 - Dry Cuttings samples Interval depths (5010'-5040') - (5670'-5700') @ 30' qty 23 Data for Olson Creek#1-PB1 API: 50-283-20171-70-00 1 Dry Samples 1 Box 1 of 4 - Dry Cuttings samples Interval depths (1710'-1740')-(2460'-2490') © 30' 1 Box 2 of 4 - Dry Cuttings samples Interval depths (2490'-2520')-(3660'-3690') @ 30' 1 Box 3 of 4 - Dry Cuttings samples Interval depths (3690'-3720')-(4780'-4800') @ 30' 1 Box 4 of 4 - Dry Cuttings samples Interval depths (4800'-4830')-(5610'-5640') © 30' Transmittals CIE AOGCC.xlsx/AOGCC 11_8_1 3 • • Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501 Phone: (907) 334-6745 Fax: (907) 334-6735 DATA TRANSMITTAL Date: November 12, 2013 1 Wet Samples 1 Box 1 of 8-Wet Samples Interval depths (1710'-1740')-(2040'-2049') @ 30' &9' qty 12 1 Box 2 of 8 -Wet Samples Interval depths (2049'-2070')-(2610'-2640') @ 21' &30' qty 20 1 Box 3 of 8 -Wet Samples Interval depths (2640'-2670') -(3090'-3120') @ 30' qty 16 1 Box 4 of 8 -Wet Samples Interval depths (3120'-3150') - (3630'-3660') @ 30' qty 18 1 Box 5 of 8 -Wet Samples Interval depths (3660'-3690') - (4110'-4140') @ 30' qty 16 1 Box 6 of 8 -Wet Samples Interval depths (4140'-4170') -(4590'-4620') @ 30' qty 16 1 Box 7 of 8 -Wet Samples Interval depths (4620'-4650') - (4980'-5010') @ 30' qty 13 1 Box 8 of 8 -Wet Samples Interval depths (5010'-5040')-(5610'-5640') @ 30' qty 21 Please sign below to acknowledge receipt. Received By: Date: Returned to Cook Inlet Energy, LLC Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 11_8_13 • OLSON CREEK #1 WET SAMPLES Olson Creek#1 Interval #of Samples 1 Wet Sample Box (270'-300') - (1020'-1050') 25 2 Wet Sample Box (1050'-1080') - (1590'-1620') 19 3 Wet Sample Box (1620'-1650') -(23401-23701 25 4 Wet Sample Box (2370'-2400') - (3120'-3150') 26 5 Wet Sample Box (3150'-3180') - (3180'-3840') 23 6 Wet Sample Box (3840'-3870')- (4590'-4620') 26 7 Wet Sample Box (4620'-4650') -(5220'-5250') 21 8 Wet Sample Box (5250'-5280')- (5670'-5700') 15 8 Boxes Total 180 Samples Total i • Company Rig Well Cook Inlet Energy Miller#34 Olson#1*: Depth Interval Box Top Bottom 1 of 8 270 300 MISSED (270-300)-(1020-1050) 300 330 30 (270-300)-(1020-1050) 330 360 30 (270-300)-(1020-1050) 360 390 30 (270-300)-(1020-1050) 390 420 30 (270-300)-(1020-1050) 420 450 30 (270-300)-(1020-1050) 450 480 30 (270-300)-(1020-1050) 480 510 30 (270-300)-(1020-1050) 510 540 30 (270-300)-(1020-1050) 540 570 30 (270-300)-(1020-1050) 570 600 30 (270-300)-(1020-1050) 600 630 30 (270-300)-(1020-1050) 630 660 30 (270-300)-(1020-1050) 660 690 30 (270-300)-(1020-1050) 690 720 30 (270-300)-(1020-1050) 720 750 30 (270-300)-(1020-1050) 750 780 30 (270-300)-(1020-1050) 780 810 30 (270-300)-(1020-1050) 810 840 30 (270-300)-(1020-1050) 840 870 30 (270-300)-(1020-1050) 870 900 30 (270-300)-(1020-1050) 900 930 30 (270-300)-(1020-1050) 930 960 30 (270-300)-(1020-1050) 960 990 30 (270-300)-(1020-1050) 990 1,020 30 (270-300)-(1020-1050) 1,020 1,050 30 (270-300)-(1020-1050) • i Company Rig Well Cook Inlet Energy Miller#34 Olson#14 Depth Interval Box Top Bottom 2 of 8 1,050 1,080 30 (1050-1080)-(1590-1620) 1,080 1,110 30 (1050-1080)-(1590-1620) 1,110 1,140 30 (1050-1080)-(1590-1620) 1,140 1,170 30 (1050-1080)-(1590-1620) 1,170 1,200 30 (1050-1080)-(1590-1620) 1,200 1,230 30 (1050-1080)-(1590-1620) 1,230 1,260 30 (1050-1080)-(1590-1620) 1,260 1,290 30 (1050-1080)-(1590-1620) 1,290 1,320 30 (1050-1080)-(1590-1620) 1,320 1,350 30 (1050-1080)-(1590-1620) 1,350 1,380 30 (1050-1080)-(1590-1620) 1,380 1,410 30 (1050-1080)-(1590-1620) 1,410 1,440 30 (1050-1080)-(1590-1620) 1,440 1,470 30 (1050-1080)-(1590-1620) 1,470 1,500 30 (1050-1080)-(1590-1620) 1,500 1,530 30 (1050-1080)-(1590-1620) 1,530 1,560 30 (1050-1080)-(1590-1620) 1,560 1,590 30 (1050-1080)-(1590-1620) 1,590 1,620 30 (1050-1080)-(1590-1620) ! • Company Rig Well Cook Inlet Energy Miller#34 Olson#1* Depth Interval Box Top Bottom 3 of 8 1,620 1,650 30 (1620-1650)-(2340-2370) 1,650 1,680 30 (1620-1650)-(2340-2370) 1,680 1,710 30 (1620-1650)-(2340-2370) 1,710 1,740 30 (1620-1650)-(2340-2370) 1,740 1,770 30 (1620-1650)-(2340-2370) 1,770 1,800 30 (1620-1650)-(2340-2370) 1,800 1,830 30 (1620-1650)-(2340-2370) 1,830 1,860 30 (1620-1650)-(2340-2370) 1,860 1,890 30 (1620-1650)-(2340-2370) 1,890 1,920 30 (1620-1650)-(2340-2370) 1,920 1,950 30 (1620-1650)-(2340-2370) 1,950 1,980 30 (1620-1650)-(2340-2370) 1,980 2,010 30 (1620-1650)-(2340-2370) 2,010 2,040 30 (1620-1650)-(2340-2370) 2,040 2,070 30 (1620-1650)-(2340-2370) 2,070 2,100 30 (1620-1650)-(2340-2370) 2,100 2,130 30 (1620-1650)-(2340-2370) 2,130 2,160 30 (1620-1650)-(2340-2370) 2,160 2,190 30 (1620-1650)-(2340-2370) 2,190 2,220 30 (1620-1650)-(2340-2370) 2,220 2,250 30 (1620-1650)-(2340-2370) 2,250 2,280 30 (1620-1650)-(2340-2370) 2,280 2,310 30 (1620-1650)-(2340-2370) 2,310 2,340 30 (1620-1650)-(2340-2370) 2,340 2,370 30 (1620-1650)-(2340-2370) • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1* Depth Interval Box Top Bottom 4 of 8 2,370 2,400 30 (2370-2400)-(3120-3150) 2,400 2,430 30 (2370-2400)-(3120-3150) 2,430 2,460 30 (2370-2400)-(3120-3150) 2,460 2,490 30 (2370-2400)-(3120-3150) 2,490 2,520 30 (2370-2400)-(3120-3150) 2,520 2,550 30 (2370-2400)-(3120-3150) 2,550 2,580 30 (2370-2400)-(3120-3150) 2,580 2,610 30 (2370-2400)-(3120-3150) 2,610 2,640 30 (2370-2400)-(3120-3150) 2,640 2,670 30 (2370-2400)-(3120-3150) 2,670 2,700 30 (2370-2400)-(3120-3150) 2,700 2,730 30 (2370-2400)-(3120-3150) 2,730 2,760 30 (2370-2400)-(3120-3150) 2,760 2,790 30 (2370-2400)-(3120-3150) 2,790 2,820 30 (2370-2400)-(3120-3150) 2,820 2,850 30 (2370-2400)-(3120-3150) 2,850 2,880 30 (2370-2400)-(3120-3150) 2,880 2,910 30 (2370-2400)-(3120-3150) 2,910 2,940 30 (2370-2400)-(3120-3150) 2,940 2,970 30 (2370-2400)-(3120-3150) 2,970 3,000 30 (2370-2400)-(3120-3150) 3,000 3,030 30 (2370-2400)-(3120-3150) 3,030 3,060 30 (2370-2400)-(3120-3150) 3,060 3,090 30 (2370-2400)-(3120-3150) 3,090 3,120 30 (2370-2400)-(3120-3150) 3,120 3,150 30 (2370-2400)-(3120-3150) i • Company Rig Well Cook Inlet Energy Miller#34 Olson#14 Depth Interval Box Top Bottom 5 of 8 3,150 3,180 30 (3150-3180)-(3810-3840) 3,180 3,210 30 (3150-3180)-(3810-3840) 3,210 3,240 30 (3150-3180)-(3810-3840) 3,240 3,270 30 (3150-3180)-(3810-3840) 3,270 3,300 30 (3150-3180)-(3810-3840) 3,300 3,330 30 (3150-3180)-(3810-3840) 3,330 3,360 30 (3150-3180)-(3810-3840) 3,360 3,390 30 (3150-3180)-(3810-3840) 3,390 3,420 30 (3150-3180)-(3810-3840) 3,420 3,450 30 (3150-3180)-(3810-3840) 3,450 3,480 30 (3150-3180)-(3810-3840) 3,480 3,510 30 (3150-3180)-(3810-3840) 3,510 3,540 30 (3150-3180)-(3810-3840) 3,540 3,570 30 (3150-3180)-(3810-3840) 3,570 3,600 30 (3150-3180)-(3810-3840) 3,600 3,630 30 (3150-3180)-(3810-3840) 3,630 3,660 30 (3150-3180)-(3810-3840) 3,660 3,690 30 (3150-3180)-(3810-3840) 3,690 3,720 30 (3150-3180)-(3810-3840) 3,720 3,750 30 (3150-3180)-(3810-3840) 3,750 3,780 30 (3150-3180)-(3810-3840) 3,780 3,810 30 (3150-3180)-(3810-3840) 3,810 3,840 30 (3150-3180)-(3810-3840) • • Company Rig Well Cook Inlet Energy Miller#34 Olson#14 Depth Interval Box Top Bottom 6 of 8 3,840 3,870 30 (3840-3870)-(4560-4590) 3,870 3,900 30 (3840-3870)-(4560-4590) 3,900 3,930 30 (3840-3870)-(4560-4590) 3,930 3,960 30 (3840-3870)-(4560-4590) 3,960 3,990 30 (3840-3870)-(4560-4590) 3,990 4,020 30 (3840-3870)-(4560-4590) 4,020 4,050 30 (3840-3870)-(4560-4590) 4,050 4,080 30 (3840-3870)-(4560-4590) 4,080 4,110 30 (3840-3870)-(4560-4590) 4,110 4,140 30 (3840-3870)-(4560-4590) 4,140 4,170 30 (3840-3870)-(4560-4590) 4,170 4,200 30 (3840-3870)-(4560-4590) 4,200 4,230 30 (3840-3870)-(4560-4590) 4,230 4,260 30 (3840-3870)-(4560-4590) 4,260 4,290 30 (3840-3870)-(4560-4590) 4,290 4,320 30 (3840-3870)-(4560-4590) 4,320 4,350 30 (3840-3870)-(4560-4590) 4,350 4,380 30 (3840-3870)-(4560-4590) 4,380 4,410 30 (3840-3870)-(4560-4590) 4,410 4,440 30 (3840-3870)-(4560-4590) 4,440 4,470 30 (3840-3870)-(4560-4590) 4,470 4,500 30 (3840-3870)-(4560-4590) 4,500 4,530 30 (3840-3870)-(4560-4590) 4,530 4,560 30 (3840-3870)-(4560-4590) 4,560 4,590 30 (3840-3870)-(4560-4590) 4,590 4,620 30 (3840-3870)-(4560-4590) • • . Company Rig Well Cook Inlet Energy Miller#34 Olson#14 Depth Interval Box Top Bottom 7 of 8 4,620 4,650 30 (4620-4650)-(5220-5250) 4,650 4,680 30 (4620-4650)-(5220-5250) 4,680 4,710 30 (4620-4650)-(5220-5250) 4,710 4,740 30 (4620-4650)-(5220-5250) 4,740 4,770 30 (4620-4650)-(5220-5250) 4,770 4,800 30 (4620-4650)-(5220-5250) 4,800 4,830 30 (4620-4650)-(5220-5250) 4,830 4,860 30 (4620-4650)-(5220-5250) 4,860 4,890 30 (4620-4650)-(5220-5250) 4,890 4,920 30 (4620-4650)-(5220-5250) 4,920 4,950 30 (4620-4650)-(5220-5250) 4,950 4,980 30 (4620-4650)-(5220-5250) 4,980 5,010 30 (4620-4650)-(5220-5250) 5,010 5,040 30 (4620-4650)-(5220-5250) 5,040 5,070 30 (4620-4650)-(5220-5250) 5,070 5,100 30 (4620-4650)-(5220-5250) 5,100 5,130 30 (4620-4650)-(5220-5250) 5,130 5,160 30 (4620-4650)-(5220-5250) 5,160 5,190 30 (4620-4650)-(5220-5250) 5,190 5,220 30 (4620-4650)-(5220-5250) 5,220 5,250 30 (4620-4650)-(5220-5250) • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 Depth Interval Box Top Bottom 8 of 8 5,250 5,280 30 (5250-5280)-(5670-5700) 5,280 5,310 30 (5250-5280)-(5670-5700) 5,310 5,340 30 _ (5250-5280)-(5670-5700) 5,340 5,370 30 (5250-5280)-(5670-5700) 5,370 5,400 30 (5250-5280)-(5670-5700) 5,400 5,430 30 (5250-5280)-(5670-5700) 5,430 5,460 30 (5250-5280)-(5670-5700) 5,460 5,490 30 (5250-5280)-(5670-5700) 5,490 5,520 30 (5250-5280)-(5670-5700) 5,520 5,550 30 (5250-5280)-(5670-5700) 5,550 5,580 30 (5250-5280)-(5670-5700) 5,580 5,610 30 (5250-5280)-(5670-5700) 5,610 5,640 30 (5250-5280)-(5670-5700) 5,640 5,670 30 (5250-5280)-(5670-5700) 5,670 5,700 30 (5250-5280)-(5670-5700) • • OLSON CREEK #1-PB1 WET SAMPLES Olson Creek#1 Interval #of Samples 1 Wet Sample Box (17101-1740') - (20401-2049') 12 2 Wet Sample Box (20491-2070')- (26101-26401 20 3 Wet Sample Box (26401-2670')- (3090'-3120') 16 4 Wet Sample Box (3120'-3150') - (36301-3660') 18 5 Wet Sample Box (36601-3690') - (41101-4140') 16 6 Wet Sample Box (41401-4170')- (45901-4620') 16 7 Wet Sample Box (46201-4650')-(49801-5010') 13 8 Wet Sample Box (50101-5040') - (56101-56401 21 8 Boxes Total 132 Samples Total • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 1 of 8 1,710 1,740 30 (1710-1740)-(2040-2049) 1,740 1,770 30 (1710-1740)-(2040-2049) 1,770 1,800 30 (1710-1740)-(2040-2049) 1,800 1,830 30 (1710-1740)-(2040-2049) 1,830 1,860 30 (1710-1740)-(2040-2049) 1,860 1,890 30 (1710-1740)-(2040-2049) 1,890 1,920 30 (1710-1740)-(2040-2049) 1,920 1,950 30 (1710-1740)-(2040-2049) 1,950 1,980 30 (17104740)-(2040-2049) 1,980 2,010 30 (1710-1740)-(2040-2049) 2,010 2,040 30 (1710-1740)-(2040-2049) 2,040 2,049 9 (1710-1740)-(2040-2049) • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 2 of 8 2,049 2,070 21 (2049-2070)-(2610-2640) 2,070 2,100 30 (2049-2070)-(2610-2640) 2,100 2,130 30 (2049-2070)-(2610-2640) 2,130 2,160 30 (2049-2070)-(2610-2640) 2,160 2,190 30 (2049-2070)-(2610-2640) 2,190 2,220 30 (2049-2070)-(2610-2640) 2,220 2,250 30 (2049-2070)-(2610-2640) 2,250 2,280 30 (2049-2070)-(2610-2640) 2,280 2,310 30 (2049-2070)-(2610-2640) 2,310 2,340 30 (2049-2070)-(2610-2640) 2,340 2,370 30 (2049-2070)-(2610-2640) 2,370 2,400 30 (2049-2070)-(2610-2640) 2,400 2,430 30 (2049-2070)-(2610-2640) 2,430 2,460 30 (2049-2070)-(2610-2640) 2,460 2,490 30 (2049-2070)-(2610-2640) 2,490 2,520 30 (2049-2070)-(2610-2640) 2,520 2,550 30 (2049-2070)-(2610-2640) 2,550 2,580 30 (2049-2070)-(2610-2640) 2,580 2,610 30 (2049-2070)-(2610-2640) 2,610 2,640 30 (2049-2070)-(2610-2640) • • Wet Samples PB1 Olson#1 PB1 Interval #of Samples 1 Wet Sample Box (1710'-1740')-(2040'-2049') 12 2 Wet Sample Box (2049'-2070')-(2610'-2640') 20 3 Wet Sample Box (2640'-2670')-(3090'-3120') 16 4 Wet Sample Box (3120'-3150')-(3630'-3660') 18 5 Wet Sample Box (3660'-3690')-(4110'-4140') 16 6 Wet Sample Box (4140'-4170')-(4590'-4620') 16 7 Wet Sample Box (4620'-4650')-(4980'-5010') 13 8 Wet Sample Box (5010'-5040')-(5490'-5520') 21 8 Boxes Total 132 Samples Total • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 4 of 8 3,120 3,150 30 (3120-3150)-(3630-3660) 3,150 3,180 30 (3120-3150)-(3630-3660) 3,180 3,210 30 (3120-3150)-(3630-3660) 3,210 3,240 30 (3120-3150)-(3630-3660) 3,240 3,270 30 (3120-3150)-(3630-3660) 3,270 3,300 30 (3120-3150)-(3630-3660) 3,300 3,330 30 (3120-3150)-(3630-3660) 3,330 3,360 30 (3120-3150)-(3630-3660) 3,360 3,390 30 (3120-3150)-(3630-3660) 3,390 3,420 30 (3120-3150)-(3630-3660) 3,420 3,450 30 (3120-3150)-(3630-3660)_ 3,450 3,480 30 (3120-3150)-(3630-3660) 3,480 3,510 30 (3120-3150)-(3630-3660) 3,510 3,540 30 (3120-3150)-(3630-3660) 3,540 3,570 30 (3120-3150)-(3630-3660) 3,570 3,600 30 (3120-3150)-(3630-3660) 3,600 3,630 30 (3120-3150)-(3630-3660) 3,630 3,660 30 (3120-3150)-(3630-3660) • • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 5 of 8 3,660 3,690 30 (3660-3690)-(4110-4140) 3,690 3,720 30 (3660-3690)-(4110-4140) 3,720 3,750 30 (3660-3690)-(4110-4140) 3,750 3,780 30 (3660-3690)-(4110-4140) 3,780 3,810 30 (3660-3690)-(4110-4140) 3,810 3,840 30 (3660-3690)-(4110-4140) 3,840 3,870 30 (3660-3690)-(4110-4140) 3,870 3,900 30 (3660-3690)-(4110-4140) 3,900 3,930 30 (3660-3690)-(4110-4140) 3,930 3,960 30 (3660-3690)-(4110-4140) 3,960 3,990 30 (3660-3690)-(4110-4140) 3,990 4,020 30 (3660-3690)-(4110-4140) 4,020 4,050 30 (3660-3690)-(4110-4140) 4,050 4,080 30 (3660-3690)-(4110-4140) 4,080 4,110 30 (3660-3690)-(4110-4140) 4,110 4,140 30 (3660-3690)-(4110-4140) s • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 6 of 8 4,140 4,170 30 (4140-4170)-(4590-4620) 4,170 4,200 30 (4140-4170)-(4590-4620) 4,200 4,230 30 (4140-4170)-(4590-4620) 4,230 4,260 30 (4140-4170)-(4590-4620) 4,260 4,290 30 (4140-4170)-(4590-4620) 4,290 4,320 30 (4140-4170)-(4590-4620) 4,320 4,350 30 (4140-4170)-(4590-4620) 4,350 4,380 30 (4140-4170)-(4590-4620) 4,380 4,410 30 (4140-4170)-(4590-4620) 4,410 4,440 30 (4140-4170)-(4590-4620) 4,440 4,470 30 (4140-4170)-(4590-4620) 4,470 4,500 30 (4140-4170)-(4590-4620) 4,500 4,530 30 (4140-4170)-(4590-4620) 4,530 4,560 30 (4140-4170)-(4590-4620) 4,560 4,590 30 (4140-4170)-(4590-4620) 4,590 4,620 30 (4140-4170)-(4590-4620) Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 7 of 8 4,620 4,650 30 (4620-4650)-(4980-5010) 4,650 4,680 30 (4620-4650)-(4980-5010) 4,680 4,710 30 (4620-4650)-(4980-5010) 4,710 4,740 30 (4620-4650)-(4980-5010) 4,740 4,770 30 (4620-4650)-(4980-5010) 4,770 4,800 30 (4620-4650)-(4980-5010) 4,800 4,830 30 (4620-4650)-(4980-5010) 4,830 4,860 30 (4620-4650)-(4980-5010) 4,860 4,890 30 (4620-4650)-(4980-5010) 4,890 4,920 30 (4620-4650)-(4980-5010) 4,920 4,950 30 (4620-4650)-(4980-5010) 4,950 4,980 30 (4620-4650)-(4980-5010) 4,980 5,010 30 (4620-4650)-(4980-5010) I • Company Rig Well Cook Inlet Energy Miller#34 Olson#1 PB1 Depth Interval Box Top Bottom 8 of 8 5,010 5,040 30 (5010-5040)-(5610-5640) 5,040 5,070 30 (5010-5040)-(5610-5640) 5,070 5,100 30 (5010-5040)-(5610-5640) 5,100 5,130 30 (5010-5040)-(5610-5640) 5,130 5,160 30 (5010-5040)-(5610-5640) 5,160 5,190 30 (5010-5040)-(5610-5640) 5,190 5,220 30 (5010-5040)-(5610-5640) 5,220 5,250 30 (5010-5040)-(5610-5640) 5,250 5,280 30 (5010-5040)-(5610-5640) 5,280 5,310 30 (5010-5040)-(5610-5640) 5,310 5,340 30 (5010-5040)-(5610-5640) 5,340 5,370 30 (5010-5040)-(5610-5640) 5,370 5,400 30 (5010-5040)-(5610-5640) 5,400 5,430 30 (5010-5040)-(5610-5640) 5,430 5,460 30 (5010-5040)-(5610-5640) 5,460 5,490 30 (5010-5040)-(5610-5640) 5,490 5,520 30 (5010-5040)-(5610-5640) 5,520 5,550 30 (5010-5040)-(5610-5640) 5,550 5,580 30 (5010-5040)-(5610-5640) 5,580 5,610 30 (5010-5040)-(5610-5640) 5,610 5,640 30 (5010-5040)-(5610-5640) • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Friday, October 25, 2013 9:54 AM To: 'courtney Rust' Cc: Bettis, Patricia K(DOA) Subject RE:Sundry Question Olsen#1 (212-171) I believe the well pretty much reached TD but will need to be redrilled due lost fish in wellbore. Go ahead and submit a 10-407 with all data you have to date. I think when you re-enter it would be easier to re permit Olson#1 as a sidetrack since you will be using a different rig. Hope that makes sense. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: courtney Rust [ st�cucooiuniet.net] Sent: Friday, October 25, 2013 9:01 AM To: Schwartz, Guy L(DOA) Subject: Sundry Question Guy, We recently submitted a sundry to suspend the Olson well as we have not finished drilling it, but we ran into issues. How does the 10-407 fall in to this?Do we wait until we finish drilling,or do we submit one based on the current well condition? Thanks. Courtney Rust Cook Inlet Energy Drilling Engineer Office-907-433-3809 cell-907-350-0091 CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential. If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review, disclosure,copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED. If you have received this transmission in error,please notify us immediately by forwarding this message to the original sender or by telephone at 907.350.0091 and then delete this message and its attachments from your computer. 1 • • w� OF%yj�s9 THE STATE Alaska Oil and Gas ���►-*- �'� °f1`1LAsKAConservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue OF �P Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 Conrad Perry Drilling Manager Cook Inlet Energy 601 W 5th Ave., Suite 310 Anchorage, AK 99501 Re: Exploration Field, Olson Creek#1 Sundry Number: 313-517 Dear Mr. Perry: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P. oerster Chair, Commissioner DATED this C0 day of October, 2013. Encl. • • 10 , STATE OF ALASKA 0 7ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS OTS 10 110113 20 MC 25.280 1.Type of Request: Abandor❑ Plug for Redrill ❑ Perforate New Pool 0 Repair Well 0 Change Approved Program ❑ Suspend❑ Plug Perforations 0 Perforate❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdov+r❑ Re-enter Susp.Well ❑ Stimulate 0 Alter Casing ❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Energy,LLC Exploratory Q Development 0 212-171" 3.Address. Stratigraphic 0 Service 6.API Number. 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20171-00-00 7. If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this poo 20 AAC 25.055 Will planned perforations require a spacing exception? Yes ❑ No ❑s OLSON CREEK#1 9. Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300062 . Exploration 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 5,715' • 5,683' • 2,308 • 2242'TVD • 2,308' • Casing Length Size MD TVD Burst Collapse Structural 157' 10 3/4" 157' 157' N/A Conductor Surface 1,699' 7 5/8" 1,699'MD 1,680' 6890 psi 4790 psi Intermediate Production Liner Perforation Depth MD(ft): 'Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A N/A N/A N/A Packers and SSSV Type: NONE Packers and SSSV MD(ft)and TVD(ft): NONE 12.Attachments: Description Summary of Proposal L`J .`{1h��� 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch LI \0 Exploratory Q Stratigraphic❑ Development ❑ Service ❑ 14. Estimated Date for 1-Oct-13 15.Well Status after proposed work: Commencing Operations: Oil 0 Gas 0 WDSPL 0 Suspended Q 16.Verbal Approval: yes Date: 9/30/2013 WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: Guy Schwartz GSTOR ❑ SPLUG El 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Courtney Rust 433-3809 Printed Name Conrad Perry 433-3816 Title Drilling Manager Email courtney.rust @ cookinlet.net Printed Name Title 10/7/2013 Signature 12Phone Date r1 COMMISSION USE ONLY p Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity 6�7, BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: x r L 4( /" of "7 _Zvtspec.- r 4-s 1kee: c , Spacing Exception Required? Yes ❑ No L1 Subsequent Form Required: /0 —y 0 APPROVED BY Approved by: 6: 7-6,..ip 2,..,..,(4,_ COMMISSIONER THE COMMISSION Date:/O ,�/D – / 3 U /0.10-13 /�a )0A-11,, J�`y 0 Submit Form and Form 10-403 vise 2012 Approv at I r nths from the date of approval. Attachments in Duplicate • • RECEIVED Cook Inlet Ener gy OCT 0 7 2013 AOGCC October 7, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application to directionally drill Cook Inlet Energy, LLC: Olson Creek#1 API:50-283-20171-00-00 PTD: 212-171 Dear Ms. Foerster, Cook Inlet Energy (CIE)requests permission to suspend the Olson Creek#1 well. We have lost two bottom hole assemblies and need to reevaluate our drilling practices before we move forward again. Verbal permission for this request was received September 30, 2013 from Guy Schwartz. Attached are the sundry form 10-403, a well schematic, procedure, and cementing details If you have any questions,please contact me at(907)-433-3804. Sincerely, Conrad Perry Drilling Manager—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • • Suspension Well Schematic OLSON PROPOSED SUSPENSION Navigator p,. 5 s `„s y tri? .,, 10 3/4” L80 157 MD k, x•'37 45.5# Driven 157'ND 50'Dump Bailed Cement '''.5. ",. Cement Retainer @ 250' t-:%, µ '..1. 1"r "E. 7 5/8"29.7#L80 LTC 714 r4 9 7/8"hole % 'AFc-Pa ..„, 6 x'"1 ,, 4t% ,a *,'1:! V''teliZi Whipstock @ 1,699'MD/1680'ND Cement Rug From 1,900'to 1,500' 3 gr s n 0:10x4,1 TOF @ 2,308'MD/2242'ND 4 1/2"Drill pipe Fish/motor/jars Back to Too ■ 6 3/4"hole NTD @ 5,715'MD/5,683'ND Well Name&Number: I Olson Creek#1 I Lease I 3IPage • • Well Cap Tubing hanger installed with 60' of 2 7/8"tailpipe and BPV, plus tubing bonnet and one 2 9/16" tree valve. Diesel freeze protect to 30'. SM sil a mage N" — bba AffO '"u f,:,>xskt alriat 41. o t►Jv.. 2.,n1red9".aa Pus a,avdq bine property of GE 0119 Gas Preewn Control LF end awneidredwrddemlp.unless aea"bs approved 0,"eking. Olson Creek#1 neither i nor OS wnlema may be used.coped.Iranemtbd or reproduced weep for. sola P+reaa d OE 009 Gas Pres..Conthf... DRAWN 10-3/4"x 7-5/8"x 2-7/8" 5M SH2 Wellhead Assembly VJK 21MAY12 APPRV With M40-CCL TubingHanger and Adapter With 21 MAY12 gJ P Flange FIXi REFERENCE ONLY DRAWING NO. AE21709-B 4IPage • • • Detailed Procedure Olson#1 Suspension Operations 1) Notify AOGCC of intent to suspend well 24 hrs in advance. 2) Run in hole with 2 7/8" stinger to 1900'. 3) Circulate and condition mud. Minimum one bottoms up. 4) Balance 400' cement plug from 1900'to 1500' using minimum 20%excess in open hole. 5) POH slowly to 1500'. Circulate hole clean at high rate. POH. 6) PU 6%" bit, RIH and dress off top of plug. Set sufficient weight to confirm plug is set. If top of plug is deeper than 1600' another plug will have to be set. -� f.. f. /cot) r $1 7) POH. Aocle_c_ 8) Set CIBP at 250' on drill pipe. 9) Dump bail 50' of cement on top of plug. 10) Nipple down BOPS. 11) Install tubing hanger with BPV and 2 jts of 2 7/8"tubing tailpipe,tubing bonnet, and one 2 9/16" tree valve. 12) Release rig. 5 Page • • Cementing Details JOB AT A GLANCE Depth (TVD) 2,400 ft Depth (MD) 2,400 ft Hole Size 6.75 in Casing Size/Weight 7 5/8in, 29.7 lbs/ft Pump Via Drill Pipe 4 1/2" O.D. (3.686" .I.D) 19# Total Mix Water Required 563 gals Slurry Class G 61 sacks Density 13.5 ppg Yield 1.82 cf/sack FLUID SPECIFICATIONS PLUG VOLUME VOLUME NO. CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1 111 1 1.82 = 61 sacks Class G Cement+ 10% bwoc BA-90 + 0.05 lbs/sack Static Free + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 0.5% bwoc Sodium Metasilicate + 81.8% Fresh Water CEMENT PROPERTIES PLUG NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.82 Amount of Mix Water (gps) 9.22 Amount of Mix Fluid (gps) 9.23 PLUG GEOMETRY PLUG PLUG TOP BOTTOM 1 1500 ft to 1708 ft with 6.875 inch ID Casing 1708 ft to 1900 ft with 6.75 inch Open Hole Wage • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim ReggDATE: 10/05/13 P.I. Supervisor 1 2 : l tl t t3 SUBJECT: Plug & Abandonment FROM: Jeff Jones Olson Creek #1 Petroleum Inspector Cook Inlet Energy Exploratory PTD 2121710 Section: 6 Township: 13N Range: 10W Meridian: Seward - Lease No.: MHT 9300062 Drilling Rig: Miller 34 - Rig Elevation: 15' Total Depth: 5643'MD Operator Rep.: Don Jones Casing/Tubing Data: Casing Removal: Conductor: 10 3/4" O.D. Shoe@ 157' MD '" Casing Cut@ Feet Surface: 7 5/8" - O.D. Shoe@ 1998'MD / Casing Cut@ Feet Intermediate: O.D. Shoe@ Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D. Shoe@ Casing Cut@ Feet Tubing: O.D. Tail@ _ Casing Cut@ Feet Plugging Data: Type Plug Bottom of T.O.C. Mud Weight Pressure (bottom up) Founded on Cement(M.D.) T.O.C. Depth Verified? above plug Test Open Hole - Balanced - 1900'MD ' 1568'MD Drillpipe tag 9# 1575 PSI Type Plug Founded on: Verified? Open Hole Bottom Drillpipe tag Perforation Bridge plug Wireline tag Annulus Balanced C.T.Tag Casing Stub Retainer No Surface October 5, 2013: I traveled to Cook Inlet Energy's(CIE)Olson Creek#1 exploration well to witness verification of a cement abandonment plug. On arrival I met with Mr. Don Jones(CIE Representative)and we discussed verification procedures.This was CIE's 3rd attempt to place a cement plug with integrity at the required depths. I witnessed a solid 15K downweight drill pipe tag of the plug at 1568'MD and observed no movement. The 7 5/8" cased hole was then pressured up to 1600 PSI and once the pressure stabilized at 1575 PSI it remained constant for the 30 minute test. Summary: I witnessed a successful drillpipe tag and pressure test of a cement abandonment plug placed in CIE's Olson Creek#1 exploratory well,as required by regulation 20AAC 25,112.(b). Attachments: Wellbore Schematic Rev.:5/28/00 by L.R.G. 2013-1005_Plug_OlsonCk-1_jj.xlsx 11/1/2013 r • Prt Z-- Q?ICY OLLN CREEK #1 10-10-13 One joint of 27/8"Tubing& one pup joint below the hanger.Freeze protected with diesel. 10 3/4" L80 157'MD 45.5# Driven 157'TVD fl50'Dump Bailed Cement `t�Pt���; Cement Retainer @ 250' 7 5/8"29.7#L80 LTC 9 7/8"hole Olson Creek#1 Well LOST IN HOLE. 101 Jts Alum DP • 3 ea Steel DP XO 2 Steel DC 4 3/4" 6 ea steel DC 4 3/4" 3 ea flex collars TOC @ 1,568' TM HOC TM HOC Float Sub Whipstock @ 1,699'MD/1680'TVD Stab Mud motor Bit Cement Plug From 1,900'to 1,500' @ 1,711'Bridge Plug TOC @ 1,918' TOF @ 2,308'MD/2242'TVD 7 5/8"Shoe©1,998' TOF©2,101' 4 1/2"Drill pipe Fish/motor/jars • Olson Creek#1 eell e` LOST IN HOLE 89 Jts Alum DP •7`. 3 ea Steel DP XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD©5,643 MD 6 3/4"hole TD @ 5,715'MD/5,683'TVD • S MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 10/05/13 P.I. Supervisor t t ‘Ts SUBJECT: Plug & Abandonment FROM: Jeff Jones Olson Creek #1 Petroleum Inspector Cook Inlet Energy Exploratory PTD 2121710 Section: 6 Township: 13N Range: 10W Meridian: Seward • Lease No.: MHT 9300062 • Drilling Rig: Miller 34 - Rig Elevation: 15' Total Depth: 5643' MD Operator Rep.: Don Jones Casing/Tubing Data: Casing Removal: Conductor: 10 3/4" O.D. Shoe@ 157' MD ' Casing Cut@ Feet Surface: 7 5/8" - O.D. Shoe@ 1998'MD / Casing Cut@ Feet Intermediate: O.D. Shoe@ Casing Cut@ Feet Production: O.D. Shoe@ Casing Cut@ Feet Liner: O.D. Shoe@ Casing Cut@ Feet Tubing: O.D. Tail@ Casing Cut@ Feet Plugging Data: Type Plug Bottom of T.O.C. Mud Weight Pressure (bottom up) Founded on Cement(M.D.) T.O.C. Depth Verified? above plug Test Open Hole - Balanced - 1900'MD ' 1568' MD Drillpipe tag 9# 1575 PSI Type Plug Founded on: Verified? Open Hole Bottom Drillpipe tag Perforation Bridge plug Wireline tag Annulus Balanced C.T.Tag Casing Stub Retainer No Surface October 5,2013: I traveled to Cook Inlet Energy's(CIE)Olson Creek#1 exploration well to witness verification of a cement abandonment plug. On arrival I met with Mr. Don Jones(CIE Representative)and we discussed verification procedures. This was CIE's 3rd attempt to place a cement plug with integrity at the required depths. I witnessed a solid 15K downweight drill pipe tag of the plug at 1568'MD and observed no movement.The 7 5/8" cased hole was then pressured up to 1600 PSI and once the pressure stabilized at 1575 PSI it remained constant for the 30 minute test. Summary: I witnessed a successful drillpipe tag and pressure test of a cement abandonment plug placed in CIE's Olson Creek#1 exploratory well, as required by regulation 20AAC 25.112.(b). Attachments: Wellbore Schematic Rev.:5/28/00 by L.R.G. 2013-1005_Plug_OlsonCk-1 jj.xlsx 11/1/2013 J` • Prtz4� �7 O0ON CREEK#1 10-10-13 One joint of 2 7/8"Tubing 8 one pup joint below the hanger.Freeze protected with diesel. • 'y. • 10 3/4" L80 157'MD 45.5# Driven 157'TVD 50'Dump Bailed Cement RV�p gee! Cement Retainer©250' ' 7 5/8"29.7#L80 LTC 9 7/8"hole Olson Creek#1 Well LOST IN HOLE 101 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" • 6 ea steel DC 4 3/4" 3 ea flex collars TOC @ 1,568' TM HOC TM HOC Float Sub Whipstock @ 1,699'MD/1680'TVD Stab Mud motor • Bit Cement Plug From 1,900'to 1,500' • @ 1,711'Bridge Plug TOC @ 1,918' TOF @ 2,308'MD/2242'TVD 7 5/8"Shoe @ 1,998' TOF @ 2,101' 4 1/2"Drill pipe Fish/motor/jars Olson Creek#1A Well LOST IN HOLE: t J 89 Jts Alum DP 3 ea Steel DP XO 2 Steel DC 4 3/4" Jars# 9 ea steel DC 4 3/4" Float Sub Stab Mud Motor Bit 6 3/4"hole TD @ 5,643 MD 6 3/4"hole TD @ 5,715'MD/5,683'TVD • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Monday, September 30, 2013 4:28 PM To: 'Conrad Perry'; Bettis, Patricia K(DOA) Cc: 'David Hall'; Big John;courtney.rust@cookinlet.net; Stephen Ratcliff Subject: RE:Olson Creek#1 PTD 212171/API 50-283-20171-00-00 Conrad, You have verbal approval to proceed with suspend operations...The lowest cement plug at 1500ft. will need to be pressure tested and tagged (witnessed by AOGCC). Test to 1500 psi for 30 min. What are your plans for surface? A short Kill string? Dryhole tree? ... please send a schematic of the wellhead as you are porposing to leave it. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Conrad Perry [ '. iltn:rnnrnri nerrvnrngkinlef ] Sent: Monday, September 30, 2013 9:35 AM To: Schwartz, Guy L(DOA) Cc: 'David Hall'; Big John; ; Stephen Ratcliff Subject: Olson Creek #1 PTD 212171 /API 50-283-20171-00-00 Guy, We lost another fish in Olson Creek#1 and wish to suspend this well per the attached program and diagram. We expect to finish this exploration well after further evaluation of the significant coal and running sand issues we experienced. If this plan is acceptable,we will follow with the appropriate sundry notice. conrad Drilling Manager Cook Inlet Energy, LLC 601 W.5th Avenue STE 310 Anchorage,AK 99501 (907)433-3816—Office (907)727-7404-Cell (907)344-0584- Home (907)260-5356-Cabin conrad.perry_@cpokinlet.net CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential.If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review,disclosure, copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED.If you have received this transmission in error,please notify us immediately by forwarding this message to the original sender or by telephone at 907.433.3816 and then delete this message and its attachments from your computer. 1 • • Olson Creek Well#1- PTD 212-171/API 50-283-20171-00-00 Daily Summary's: Sept 30-Oct 6 9/30/2013 POH and LID DP and cut lip guide. Top of fish at 2,302'. RIH WI open ended DP to 1,920'. R/U cementers and pump 20 bbls of 13.5 ppg cement. POH. 10/1/2013 P/U 6-3/4" bit and RIH 995'. WOC. RIH to 1,900'w/o tagging cement. Circulate out contaminated mud. POH and L/D BHA. RIH w/DP to 1,800'. Wash down F/1,800'-2,070'. 10/2/2013 Wash down to 2,100'. CBU and R/U cementers. Pump 23.6 bbls of 13.5 ppg cement. POH and LID cementing equipment. R/U for BOP test. Test BOPE. RIH w/6-3/4" bit to 1,050'. Wash down to 1,500'with no cement. POH to 1,400'and CBU. WOC. 10/3/2013 WOC. RIH to 1,500'and wash down to 1,785'. Tagged cement and CBU. POH. M/U cement BHA and RIH to 1,690'. Tag TOC at 1,780'. R/U cementers and pump 23.6 bbls of 13.5 ppg cement. POH to 785'& WOC. 10/4/2013 Circulate at 785' while WOC. RIH to 1,564'. CBU and WOC. Continue to RIH to 1,568'. Tag cement. Top of Cement at 1,568', 131'above window. Test 7-5/8"casing to 1,500 psi, good test. Witnessed by AOGCC. 10/5/2013 POH and L/D DP. R/U Pollard E-Line unit and bailing assembly to bail cement. Dump bail 50'cement F/250'-200'. Pump out cellar, drain stack, and pull wear bushing. M/U 1 joint of 2-7/8" EUE on pup and tubing hanger and land hanger. N/D wing and swab valves from tree. Install 2 way check valve in tubing hanger. 10/6/2013 Flush mud lines. Nipple down BOPE. N/U tree and test void to 5,000 psi for 10 minutes. Test tree to 5,000 psi for 10 minutes. Pull 2 way check valve. Freeze protect well with 1.5 bbls of diesel. Continue to rig down equipment. LJ' • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Monday, September 30, 2013 4:28 PM To: 'Conrad Perry'; Bettis, Patricia K(DOA) Cc: 'David Hall'; Big John;courtney.rust@cookinlet.net; Stephen Ratcliff Subject: RE: Olson Creek#1 PTD 212171/API 50-283-20171-00-00 Conrad, You have verbal approval to proceed with suspend operations...The lowest cement plug at 1500ft. will need to be pressure tested and tagged (witnessed by AOGCC). Test to 1500 psi for 30 min. What are your plans for surface? A short Kill string? Dryhole tree? ... please send a schematic of the wellhead as you are porposing to leave it. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Conrad Perry [ ‘ ilto:conrad.perry@ cookinlet.nt_] Sent:.Monday, September 30, 2013 9:35 AM To: Schwartz, Guy L (DOA) Cc: 'David Hall'; Big John; ; Stephen Ratcliff Subject: Olson Creek #1 PTD 212171 / API 50-283-20171-00-00 Guy, We lost another fish in Olson Creek#1 and wish to suspend this well per the attached program and diagram. We expect to finish this exploration well after further evaluation of the significant coal and running sand issues we experienced. If this plan is acceptable, we will follow with the appropriate sundry notice. conrad Drilling Manager Cook Inlet Energy, LLC 601 W.5th Avenue STE 310 Anchorage, AK 99501 (907)433-3816—Office (907) 727-7404-Cell (907)344-0584- Home (907) 260-5356-Cabin conrad.perrvecookinletnet CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential. If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review,disdosure, copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED.If you have received this transmission in error,please notify us immediately by forwarding this message to the original sender or by telephone at 907.433.3816 and then delete this message and its attachments from your computer. 1 • • Olson#1 Suspension Operations 1) Notify AOGCC of intent to suspend well 24 hrs in advance. 2) Run in hole with 2 7/8" stinger to 1900'. 3) Circulate and condition mud. Minimum one bottoms up. 4) Balance 400' cement plug from 1900'to 1500' using minimum 20%excess in open hole. 5) POH slowly to 1500'. Circulate hole clean at high rate. POH. 6) PU 6%" bit, RIH and dress off top of plug. Set sufficient weight to confirm plug is set. If top of plug is deeper than 1600' another plug will have to be set. N°`f"' ' `1 7) POH. LA, + 8) Set CIBP at 250'on drill pipe. 9) Dump bail 50'of cement on top of plug. 10) Nipple down BOPs. 11) Install protection flange with%" needle valve. 12) Release rig. Ol. PROPOSED SUSPENSION • 10 3/4" L80 157'MD 45.5# Driven 157'TVD 50'Dump Bailed Cement Cement Retainer @ 250' 7 5/8"29.7#L80 LTC 9 7/8"hole Whipstock @ 1,699'MD/1680'TVD Cement Plug From 1,900'to 1,500' TOF @ 2,308'MD/2242'ND 4 1/2"Drill pipe Fish/motor/jars 6 3/4"hole �--� TD @ 5,715'MD/5,683'TVD • HALIIBURTON Sperry Drilling Olson #IA - Cook Inlet Energy 2" MD Formation Evaluation Log 2"_ 100ft Sandstone Silts tone Claystone Coal Chert Chromatograph ROP — 0 Gas Analysis p 200 ft/hr 0 = m-I Gas Max (ppm) s Lithologic r 0 r c(1:0 Tr 0 units Methane Xi: Ethane MW In 0 NkllbbsB 40 O =� 0 �a Propane 7 ppg 11 g Descriptions 0 . MD Gas Avg Total Butane ------ � RPM co cN cQ 0 units 200 Total Pentane ----— 0 __ rpm —200 `� [Z) .< Remarks 10100 1K 10K100KM to ROP 46 OB4 CLYST:pred med-It gy,occ wht, 1 •; cmb,wx occ stky,sfr frm, rr y, y,grding v f r 'eonn r sst Up. COAL:bk,frm-mod hd,occ blky, Iiiiipt ,-- 49 U splin,fssl ip. Conn __ r ' f \ CLYST:pred med-It gy,occ wht, - rr bm gy,sft-mod frm,amor,rr --_ .1- cmb,wxy,occ stky,rthy,grding v f . .__ sst i/p. < 4080.00'MD " Conn \_� 137 U 4048.63'TVD — 1:".... INC 0.54° CLYST:pred med-It gy,occ wht, —T — o — 111 ! -- --AZI 308.36° rr bm gy,sft-mod frm,amor,rr } o ` --- cmb,wxy,occ stky,rthy,grding v f _ . . I sst i/p. .- ' . ( .nn `' 1 1 — - i' CLYST:It-med gy,rr It bm,rr 1 crm,sft-mod fnn,amor,wxy,occ stky,rthy,grding v f sst i/p. CLYST:It-med gy,rr It-med brn, sft-mod frm,amor,wxy,occ stky, ��---- —G1-1144 U y40170.00'MD rthy,grding v f sst/p. 1 • onn 4138.70'TVD INC 0.82° k AZI 299.81° ' \ COAL:bk,tr v dk brn,mod hd-hd, N < blky,splin,fssl ip. o ..,4.....--..-..;7 O c. 1 . onn 'Ps % CLYST:It-med gy,tr It-med brn,tt ' ^_ s crm,sft,amor,wxy,occ stky,rthy, *.\ 1111111 ,1 grding o f sst i/p. n r __ _ .,=` .- - -� COAL:bk,tr v dk brn,mod hd-hd, S -=P 132 blky,splin,fssl ip. s. 4260.00'MD — 4228.69'TVD P1122 INC 0.90° AZI 308.81° SST:transl-transp,mlky wht, ' { - It-med gy,grn,It brn,pred A P' unconsol,occ Ise cmnt,cI mtrx,f ) gr,sb ang-sb rnd,mod-w srt,qtz. O �` __ SST:transl-transp,mlky wht-crm, O u ..-SIt-med m,unconsol,occ Ise i �_.— ;» 9y.9 cmnt,cl mtrx,f gr,sb ang-sb md, — __ r"' mod-w srt,qtz. onn ""'`' 0----,:, MW 9 55,Vi! 25,Y 25,01 r , Fil 3. ,FC 110,p .2,Cl 8000 L 1 I CLYST:It-med gy,It bm,occ I I crm,pred sft,occ frm,amor,wxy, I --- G 86 U -- ---t - ---- 4350.00'MD occ stky i/p,rthy,grding v f sst i/p. 4318.64'TVD 07,Sep 20131 ..n \`i ` INC 0.87° --4----4-----r- 372' j AZI 302.93° c CLYST:It med gy,occ crm,pred Ni_Sep 201 „. �_t------ MW 9 55,Vis 5 ,•' 7,Y 18, sft,occ frm,amor,wxy,occ stky, Short Trip to Clean Hole c:----- U Fil 3. ,FC 1/0,p, •.5,Cl 7000 rthy,grding v f sst i/p. Off Bot:20:08 07 Sep 2013 to : ---z'- On Bot:10:58 11Sep 201 I� -- _'`— __=.. O alibrae 900, THS! Caiebrate 8900 GC CLYST:It gy,occ med gy,occ o C1=1.000% crm,pred sft,occ mod frm,amor, 5 r C1 =10;0��/o wxy,occ stky,rthy,grding v f sst • C2=0.501% y. y y9 9 J 000 Units=100% i/p,tr coal. --- onn --- C3=0.248% I r ®� ,`_� Gas in Air iC4=0.250% nC4=0.250% ---� _ a iC5=0.101% nC5=0.101% CLYST:Itgy,occ crm,sft,amor. 1 - —, - wxy,occ stky,rthy,grding v f sst 4440.00'MD i/P. conn — —---- ( --__ } i_.---_ 4408.63'TVD I I INC 0.61° JAZI 252.98° — _ �146 U SST:transl-transp,mlky whtcrm, I ,— It-med gy,gm,unconsol,abd Ise < cmnt,cl mtrx,f gr,sb ang-sb md, J "....,..�-. � mod-w srt,qtz. — —.---- onn J RPM_74 GP :32 4=. % ' cri ROP 34 W O:.5 op — = 79 U CLYST:It-med gy,pred sft,occ j Coon ,' frm,amor,wxy,occ stky,rthy, \ II grding o f sst i/p,rr coal. 1 l 1 — GR89U 1 4530.00'MD CLYST:It-med gy,pred sft,occ 1 4498.67'TVD frm,amor,wxy,occ stky,rthy, .nn ___ ( INC 0.79° grding v f sst i/p,rr coal. _ _ _ ___ AZI 186.04° 1 I CLYST:It-med gy,occ bl gy,pred • 1 \1 —'3 GP 02 U sft,occ frm,amor,wxy,occ stky, 5 +nn ' rthy,grding v f sst Up,rr coal. 01'1 S".2013 L� — ' 35 U MW 9 40,Vis 544 20,Y 28, -- — 57T 12,Se.2013AIMMI — fi r- "' Fil 3.7,FC 110,pH 11�,Cl 600E gdjustihole iciei o J •1 U -- - COAL:bk,tr v dk brn,mod hd-hd, 1 `— blky,splin,fssl ip. —- _ems r' ► I 4620.00'MD CLYST:It med gy,pred sH,occ t -, 4588.66'T VD frm,amor,wxy,occ stky,rthy, .nn y, din v f sst i/ ,rr coal. INC 0.83° grding P • 1b. �''`''''""'' '' — — U 1 AZI 183.88° CLYST:med gy-med bl gy,occ It 1 _ wh gy,pred sft,rr frm,amor,wxy, �,.. / rthy,gd tr f v sst. ___�_.-_ CLYST:It ed gy,pred y sft, cc ,: �� frm,amor,wxy, rthy, 1 7> grding o f sst i/p,m coal. . onn a r GP 1112 1 — 1 —` o — COAL:bk,tr v dk brn,mod hd-hd, -- 3., blky,splin,fssl ip. r 4710.00'MD ._ j 4678.65 TVD c onn --- INC 0.84° �1 AZI 191.03° CLYST:IHned gy,pred sft,occ t 4GP 06 U mod g v f mor,wxy,occ stky,rthy, _NM- +nn- _ lTGti —--- • I 1 Conn i Chromatograph ROP D Gas Analysis p 200 ft/hr 0 rt r" Gas Max (PPm) Lithologic -. 0 r CD 0 units 200 Methane r-* = xi: -t Ethane ----- MW In WOB 40 0 rt 0 I Propane — 7 ppg 11 ; Descriptions F, 3 rt MD Gas Avg Total Butane ------ to RPM N c . 0 units 200 Total Pentane ---. = rpm 200 < w CD Remarks In 1100 1K 10K10ON, tin WARRANTY: Halliburton Energy Services, Inc. will use its best efforts to furnish customers with accurate information and interpretations that are part of, and incident to, the services provided. However, Halliburton Energy Services, Inc. cannot and does not warrant the accuracy or correctness of such information and interpretations. Under no circumstances should any such information or interpretation be relied upon as the sole basis for any drilling, completion, production, or financial decision or any procedure involving any risk to the safety of any drilling venture, drilling rig or its crew or any other third party. The Customer has full responsibility for all drilling, completion and production operation. Halliburton Energy Services, Inc. makes no representations or warranties, either expressed or implied, including, but not limited to, the implied warranties of merchantability or fitness for a particular purpose, with respect to the services rendered. In no event will Halliburton Energy Services, Inc. be liable for failure to obtain any particular results or for any damages, including, but not limited to, indirect, special or consequential damages, resulting from the use of any information or interpretation provided by Halliburton Energy Services, Inc. 0 HAIIIIIIBURTON i Sperry Drilling Olson #IA - Cook Inlet Energy 2" MD Formation Evaluation Log 2" = 100ft Sandstone Silts tone Claystone Coal Chert Chromatograph ROP 0 Gas Analysis p 200 ft/hr 0 r rt Gas Max Methane(ppm) <' Lithologic units Ethane ----- MW In ID -. 0 WOB 0 rt 0-a = Propane — 7 PP9 11 o Descriptions 0 rt MD Gas Avg Total ButaneCP 0 RPM 200 to tot 0 su 0 units 200_ Total Pentane ---. p Remarks a 0100 1K 10K 100KM cn m ROP 26 1 WO 5 0I I 1 I CLYST:It-med gy,occ It-med GP h 14 U bm,sft,amor,wxy,rthy,tr v f-f gr . T"� sst,tr coal. ` — onn 2a_z------- M. I --7,--,-----GP 390 UI 1 I3 SeP 201E CLYST:It-med gy,occ It-mad 1 ® 152 U bm,sft,amor,wxy,rthy,tr v f-f gr -5043'AID y< sst,tr coal. 1oep201j , _ MW9.45,Vs , 'V 20,YP 2900 — —---- SST:transl-transp,mlkywhtcrm, 1.71-'1156 U b. It-med gy,gm,unconsol,cl mtrx, 5070.00'MD vf-f gr,sb ang-sb md,mod-w srt, °nn _I I 5038.57 TVD qtz. — INC 0.73° • ` `— AZI 206.00° cn c GP 134 U CLYST:It-med gy,occ It bm,sft, I_ { f a occ frm,amor,wxy,rthy,tr v f-f gr o L '" T ""-"""— sst,tr coal. — ` onn ° ,f r— GP110U ` GP 112 U CLYST:It-med-dk gy,occ It bm, I sft-frm,amor,wxy,rthy,tr v f-f gr :y sst,tr coal. Cann B =--SGP 112 Ua1_ T CLYST:It-med gy,scat dk -- occ It brn,sft-frm,occ mod hd, t 5160.00'MD amor,wxy,rthy,tr v f-f gr sst. - r. 5128.56'ND 144U INC 0.89° <— GP 136 U AZJ 218.26° t CLYST:It-med gy,sft,amor,wxy, rthy,tr v f-fgrsst. Cn 178 Ul t SST:transl-transp,mlkywhtcrm, M W'.55,V s 5., 'V 20,YP It-med gy,pred unconsol,occ Ise 23,F 13.5,FC I pH 9.4,CI cmnt,cl mtrx,of-f gr,sb ang-sb r n ;_.;:. 7_7/.1,, 2800 md,mod srt,qtz. _ Short Trip to Repair Top Drive&Test BOP I < i Off Bot:15:53 14 Sep 2013 — - S , CLYST:It-med-dk gy,occ It-med -On Bot:23:45 19 Sep 2013 _ bm,sft-fmm-mod hd,amor,rthy, 19 Se 201 ll MW'.50,Vs •, 'V18,YP blky,trvf-fgrsst. ---1-3--5263'NSD c 24 F 13.6,FC 1I0 pH 9.2,CI 20 Se 2011 '_ 28001 nn I libra'_e 9000 THA atlbrate 8900 GC o Cl=1.000% CLYST:It-med gy,occ dk gy, RBit#6ReedH 1 og PDC1S69J ;r — > Cl =10 000/o i o sft-frm,amor,occ blky,rthy,abd v R Jets' 5x1 alo 0,000 L nits=100% C2=0.501/ f-f gr sst. Jets:5x11,T A 0.4640 I 3=0.248% In:5253.41' D 5221.96 !�1 Gaslin Air iC4 0.25 °/ n 4=0.250% Out oc x.xx' D,xxxx.xx n W i' iC5=0.10!1° n 5=0.101 • oo f'`I LIME — MW 0.75,V s 7 V 15,YP CLYST:It med-dk gy,occ It-med 26,FI4.0,FC pH 9.5,C I bm,sft,amor,rthy,abd v f-f gr sst, ® ,— GP 115 U 27000 abd coal. I rrGP112U j0---1-- �_�-- C31'174 U CLYST:It-med gy,occ It-med , 4 — c bm,sft,amor,rthy,sktky,grding v tc f sst i/p 1 T I t. :' i onn ::: ._y =— I , '- �U MW 9.75,Vis •1,PV 16,YP CLYST:It-med gy,occ It-med I1 I17,Fil 4.3,FC /0,pH 9.0,CI brn,occ crm,sft,amor,rthy,occ 1 IIIA 28000 sktky,grding v f sst Up. MI _ *'fl61 U • _ : I 1 COAL:blk,mod hd-hd,blky, 0 _Y 143 U O L:-. - --MT? 1 SST:transl-transp,mlky wht-crm. ---- I It-med gy,unconsol,vf-f gr,sb ' x'176 U ang-sb rnd,mod-w srt,qtz. G > onn ..��F --'•��--r��J AYV V'...... ___#_V 1 _-- COAL:blk,occ med-dk brn,mod - . hd-hd,blky,splin,abd clyst,tr sst. - . u onn 1 — CG1210U CLYST:It-med gy,occ It-med brn,sft-frm,amor,occ blky-pity, � ( rthy,tr v f-f sst. RPM 84 G`In 36 cmm ------'11"273-1T a 7 U ROP 29W;-: 4 o C— Sep 201;. onn --�-I5511' D ' CLYST:It-med gy,occ It-med 21$e 2013 — _- I3 , brn,sft,amor,rthy,tr v f-f sst,abd r coal. 2,Z6 U MW .70,Vs V 12,YP onn 18,F 4.0,F I pH 9 ,CI i /' CLYST:It-med-dk gy,r It-med , 111111111111•11.111 \: or mercnantaoiiity or ritness ro anicuiar purpose, witn respect to t rvices renaerea. in no event win Halliburton Energy Services, I e liable for failure to obtain any pa lar results or for any damages, including, but not limited to, indirect, special or consequential damages, resulting from the use of any information or interpretation provided by Halliburton Energy Services, Inc. • • of k# Z-1Z 1710 Regg, James B (DOA) From: WMRU Drilling Foreman [drilling.foreman@cookinlet.net] Sent: Monday, September 30, 2013 11:14 AM l' (c (3 (3 To: DOA AOGCC Prudhoe Bay Cc: 'Conrad Perry' Subject: Report of BOPE use BOPE used 9/27/13 at 09:30 hrs. Olson Creek#1)74 Beluga, PTD#2121710. ' Rig name Miller 34. - Operator Contact: Mike Murray 907-433-8965. Event: Circulating Black magic mud from annulus, noted increased flow, Shut well in, check well and found well static. Determined well fluids were unbalanced. Continued operations. - BOPE used:Annular Preventer. Reason for BOPE use: Well flowing. The operation was completed without anymore incident and the annular BOPE will be tested when next out of the hole. 1 Olson Creek Well#1- PTD 212-171 150-283-20171-00-00 • Daily Summary's: August 19-25 8/19/2013 Work on upper powerhead, dress threads and prep to reinstall nut. 8/20/2013 M/U fishing assembly and RIH to 1950'and engage fish. Work fish while cutting MW back w/ centrifuge and desilter. 8/21/2013 Continue working fish and decreasing MW to 9.6 ppg. R/U Free Point Tool and RIH. 100%free at 2253'. Back off at 2097'for S/T and POH. 8/22/2013 RIH w/2-7/8" stinger for setting balanced plug. Tag TOF at 2101', POH to shoe and CBU. 8/23/2013 RIH to 2101' and CBU. R/U cementers for balanced plug. Pump cement per plan w/19.4 bbls of 17.1 ppg cement. CIP at 1900 hrs. POH to 1585' and CBU. (Estimated TOC-1685') 8/24/2013 POH w/stinger, L/D tools and M/U clean out assembly. RIH w/6-5/8"junk mill &7-5/8" casing scraper. Tag firm cement @ 1918'. CBU and POH to set packer&whipstock. RIH w/anchor packer and set at 1711'. POH and R/D E-line equip. 8/25/2013 Test BOPE. M/U Whipstock assembly and RIH to 1708'. Orient to 82 degrees and set w/top of 7- 5/8" whipstock at 1699'. Mill window F/1699'- 1714',confirm window, and 2'of formation. POH, L/D whipstock BHA. • • Olson Creek Well#1-PTD 212-171/API 50-283-20171-00-00 Daily Summary's: August 19-25 8/19/2013 Work on upper powerhead,dress threads and prep to reinstall nut. 8/20/2013 M/U fishing assembly and RIH to 1950'and engage fish. Work fish while cutting MW back w/ centrifuge and desilter. 8/21/2013 Continue working fish and decreasing MW to 9.6 ppg. R/U Free Point Tool and RIH. 100%free at 2253'. Back off at 2097'for S/T and POH. 8/22/2013 RIH w/2-7/8" stinger for setting balanced plug. Tag TOF at 2101', POH to shoe and CBU. 8/23/2013 RIH to 2101'and CBU. R/U cementers for balanced plug. Pump cement per plan w/19.4 bbls of 17.1 ppg cement. CIP at 1900 hrs. POH to 1585'and CBU. (Estimated TOC- 1685') 8/24/2013 POH w/stinger, L/D tools and M/U clean out assembly. RIH w/6-5/8"junk mill&7-5/8"casing scraper. Tag firm cement @ 1918'. CBU and POH to set packer&whipstock. RIH w/anchor packer and set at 1711'. POH and R/D E-line equip. 8/25/2013 Test BOPE. M/U Whipstock assembly and RIH to 1708'. Orient to 82 degrees and set w/top of 7- 5/8"whipstock at 1699'. Mill window F/1699'- 1714', confirm window,and 2'of formation. POH, L/D whipstock BHA. w Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, August 20, 2013 8:45 AM To: 'Conrad Perry'; Ferguson, Victoria L(DOA) Cc: Bettis, Patricia K(DOA); courtney.rust@cookinlet.net;drilling.foreman@cookinlet.net; 'Greg Kirkland'; 'David Hall'; 'Tim Jones'; 'Stephen Ratcliff' Subject: RE:Olson Creek#1 PTD 212171/API 283-20171-00-00 Conrad, I assume there is no RA source in BHA. If so,you have approval to abandon BHA and hole section as proposed (i.e. set cement plug as deep as possible and bring back to 7 5/8" surface casing shoe). Abandoned hole section will become Olson Crk#1- PB1 with-70 suffix on API number. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Conrad Perry [ i!tn*rnnndi nprrvhcookinlet.r ] Sent: Monday, August 19, 2013 7:53 PM To: Schwartz, Guy L(DOA); Ferguson, Victoria L(DOA) Cc: Bettis, Patricia K (DOA); urtney.rust c cookinieLnet; drilling.foremanOcookinlet.ne ; 'Greg Kirkland'; 'David Hall'; 'Tim Jones'; 'Stephen Ratcliff' Subject: RE: Olson Creek #1 PTD 212171 /API 283-20171-00-00 Guy, We have been unable to pull the fish out of Olson Creek and are at the end game. The last free point showed 10%free about 100'outside the 7 5/8" shoe at 1995'. We are out of the hole now and plan to re-engage the top of the fish just inside the shoe, displace the black magic out of the hole and make one last quick attempt to free the fish. I assume it will be unsuccessful. We will then perform a free point and back the pipe off outside the shoe. I request permission to balance a cement plug from the top of fish back into the 7 5/8" shoe. Future plan will be to set a bridge plug and whipstock at the shoe of the 7 5/8" and re-drill this hole section. conrad Drilling Manager Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage,AK 99501 (907)433-3816—Office (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356-Cabin yw\����j/j..s. THE STATE Alaska Oil and Gas -�� OfALASKA `���' Conservation Commission *h' GOVERNOR SEAN PARNELL 333 West Seventh Avenue ALAS Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Conrad Perry Drilling Manager Cook Inlet Energy 601 W. 5`" Avenue, Suite 310 Anchorage, AK 99501 Re: Exploration Field, Exploration Pool, Olson Creek #1 (Re-Issue) Cook Inlet Energy Permit No: 212-171 (Re-Issue) Surface Location: 2886 FNL, 2620 FWL, T13N, RIOW, Section 6, S.M. Bottomhole Location: 2365 FNL, 2527 FWL, T13N, R10W, Section 6, S.M. Dear Mr. Perry: Enclosed is the approved application for permit to drill the above referenced exploration well (bottomhole location amended). All stipulations specified in and with previously issued Permits to Drill (Permit No: 212-171) for this exploration well continue to apply. 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 AOGCC 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 AOGCC'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 AOGCC 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 an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sind •ly, 411 �• a . orman Ci a Commissioner DATED this / day of afoot- , 2013. 3 it lima rm..9 td iota'those Auu 0 9 2017 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL �, 20 AAC 25 005 Kc'_ `icc , is-`i, to 'type of Work lb Proposed Weil Class Development-Oil J Service- Wulf ( See is .u:h' ! 1i: Spv yrk *P1. n�4 , [0tt D. • Reda 0 StratigtapttleTest 4. Development-Gas T Service•Supply P,',.r'tgile.',`'le r ' Ccuitb tt C3 Re-entry Exploratoryi Service WAG ] Service•Glsp jm 2 Operator Name: 5 Eland Blanket Single Well ? ' W "17.47. ` COOK INLET ENERGY.LLC Bond No. 61212870. / t St N e 3 Adsirestt: 6.Proposed Depth: .55/ 1.r c`mtei'FN><�I(s) 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MDQ'- 7a ) ' •q-q/3 �' 4a Location of Well(Governmental Section): 7.Property Designation(butte Number) • !"XPLGNAMErt Surface 2620'FWL,2886'FNL T13N R1OW Sec.6 SM • MHT 9300002 ' Top of Productive t tonzan: ... 8 land Use.Permit: 1;i AppirUnn** +- . Wit 2385'FNL&2527'FWL T 13N R le W Sec 6 SM MHT 9300062 t 1!`_ (3 (.Ti Total Depth 9.Acres in Property: Qittafoe 10 NM t 2365'FNL&2527'FWL T 13N R 10 W Sec 6 SM 5483 . 230 4b Location of Well(State Base Plane Coordinates-MAD 27) 10.KB Elevation above MSL- 323.4 15.Distance to t r ' s i, yb Surface x-299747 ' y- 2649260 142 . Zone- 4 01.Elevation above MSL: 306 to Same Pool. N/A h 4t f/? 16 Deviated welts. N/A Kickoff depth feet 17,Maximum Anticipated Pressures In pelg(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 3744 psi • Surface: 21)1i4 psi . 18 Casing Program, Specifications Top - Setting Depth - Bottom Cement Quereity,of,or sack* 1 Hole Casing Weight Grade Coupling Length MD TVD MD TVD (tntdtrdtftEt Star deet) 13 117" 10 3!4" ' 45.55 L-8D LTC 200' 0 0 200' 200' driven ' 9 718" ' 7 518" 29 74 L-80 LTC 1998' 0 0 1998' 1995' 455 sirs ! 6 314" 5 112" 17# L-80 LTC • 5800' 1700 1700 7580" _Me' -384-116- -r'-'i-3 cz13f' 19 PRESENT WELL CONDITION SUMMARY(To be completed for Redrilt and Re-Entry Operations) k";. ! Total Depth MD(ft>: Total Depth TVD On Plugs(measured) Effect.Depth MO(R) Effect.Depth TVD(h) J�i ttimmured) Casing "rengM,- _,-__� Size Cement Volume — MD VD A Cor uctar/Structural •�. �_ ._.-- t Surface - t - - — 1 nterrnectrate ' Production 1 Perforation Depth MD fft/. 'Perforation Depth WO(ft) i20 Attachments Property Plat ^ BOP Sketch:0 Doting Program El lime v Depth Plot 0 Shallow Hazard Air ° Current Directional Report Diverter Sketct [j Seabed Report 0 Drilling Fluid Program [1 20 AAC 25 060 requlremesir'. 21 Verbal Approval. Commission Representative Date 9-Aug r i 22 I hereby certify that the foregoing is true and correct Contact Courtney frust 433.3809 Printed Name onrad Perry Title Drilling Manager ` 7 Signature Phone 907 433-3816 Date 8,9/2013 Commission Use Only Permit to Drill API Nu �����` �/ Permit Approval �" Number .�../ 2. / 7/ 0- 5— v I-7/ (,i -Gate nnn� See cover letter for other `1 1 I requirements 6 Conditions of approval if box is checkedwell may not be used to explore for,test.or produce coatbert m hane,gas hydrates,or gee contained to shape' Other Samples ree'd Yes L; No0 Mud log 1,10 0 pf-c vi o vs s }'r /7 `rz t/•O k7 S H"s measures Yes req'd: Vis [ /" , 0 No[v Directional svy req'd Yes 0 1h PT-0 262-17-1 .4pp1c� Bop f-p-5 f te) 3 of o psi'd - p/CC fr!GI kvv r--k s 1.77--v7 fr,-,4- CV <.,-"e2 t v� f G S I. c/vzJ Fv fi v w h--51 4/e0 t' `! ---A-- / 1 APPROVED BY THECOMMISSION 1 DATE 9/9/ l.J f^��/ ,COMMISSIONER ii 00RIGINAtF /i/ 3 norm 10401 rRevised 71203, This permit is valid for 24 months from the date of approval 120 AA 25 6051911 Sutml wr Duplexes • • EC, Cook Inlet Energy AUG 0 9 2033 AOGCC August 9th, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Cook Inlet Energy, LLC: Olson Creek#1 API: 50-283-20171-00-00 Dear Ms. Foerster, Cook Inlet Energy(CIE)requests permission to amend the Bottom Hole Location for the Olson Creek#1 well (PTD#212-171). The 9 7/8"hole walked up dip on Olson Creek and could not be controlled by WOB. In fact,the angle accelerated the last 200' to 25 degrees. We have a steerable motor and MWD in the hole and were correcting the well bore back to vertical with surveys every 100', however,we are unable to further correct the direction due to hole conditions. The requested BHL is the current well bore location a.5313-(MD. Ss � titc1. f;1 84.i3 We have the lease (section 1)to the West, however, we do not have the lease to the North. I am / confident we will stay a minimum of 1500' away from any section line. I have attached the latest survey data. We are aware that should the well enter into an area where a spacing exception would be required,we cannot produce or test that well until that exception is given. ✓ If you have any questions, please contact me at(907)-433-3816. Sincerely, Conrad Perry Drilling Manager—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax OALLIBURTON 511`x:1, DIRECTIONAL SURVEY REPORT Cook Inlet Energy Olson 1 Exploratory Cook Inlet Alaska USA AK-XX-0900491711 Measured Vertical Vertical Depth Inclination Direction Depth Latitude Departure Section Dogleg (feet) (degrees) (degrees) (feet) (feet) (feet) (feet) (deg/100ft) 0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 TIE-IN 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 3.64 5.12 399.66 14.44 N 0.90 E 14.41 0.56 500.00 4.29 4.39 499.42 21.33 N 1.47 E 21.28 0.65 600.00 4.84 3.92 599.10 29.27 N 2.05 E 29.20 0.55 700.00 5.45 2.22 698.69 38.22 N 2.52 E 38.14 0.63 800.00 6.37 0.81 798.16 48.51 N 2.78 E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1095.52 88.06 N 1.57 E 87.98 0.79 1200.00 9.83 355.59 1194.20 104.18 N 0.52E 104.13 1.09 1300.00 10.86 357.01 1292.58 122.10 N 0.62 W 122.07 1.06 1400.00 11.96 356.06 1390.60 141.85 N 1.83 W 141.84 1.12 1500.00 13.67 356.67 1488.10 163.98 N 3.23 W 164.01 1.72 1600.00 15.57 356.67 1584.86 189.18 N 4.69 W 189.24 1.90 1700.00 17.64 357.79 1680.69 217.72 N 6.06 W 217.80 2.09 1800.00 20.13 358.78 1775.30 250.07 N 7.01 W 250.17 2.51 1850.00 21.23 359.03 1822.07 267.72 N 7.34 W 267.82 2.21 2037.00 25.78 359.36 1993.51 342.28 N 8.37 W 342.38 2.44 2067.00 25.49 359.07 2020.56 355.26 N 8.54 W 355.36 1.05 2097.00 24.87 358.49 2047.71 368.02 N 8.82 W 368.13 2.23 2127.00 24.16 357.87 2075.00 380.46 N 9.21 W 380.57 2.53 2157.00 23.36 357.19 2102.46 392.54 N 9.73 W 392.66 2.82 2187.00 22.67 357.07 2130.07 404.25 N 10.32 W 404.39 2.29 2217.00 22.21 357.14 2157.80 415.69 N 10.90 W 415.83 1.53 2247.00 21.67 356.74 2185.63 426.88 N 11.49 W 427.04 1.88 2277.00 21.06 356.03 2213.56 437.79 N 12.18 W 437.96 2.19 2307.00 20.33 355.49 2241.63 448.36 N 12.96 W 448.55 2.54 2337.00 19.61 355.16 2269.82 458.58 N 13.80 W 458.78 2.42 2367.00 18.96 354.46 2298.14 468.44 N 14.69 W 468.67 2.29 2397.00 18.38 354.08 2326.56 478.00 N 15.65 W 478.25 1.98 2427.00 17.74 353.40 2355.08 487.24 N 16.66 W 487.52 2.24 2457.00 17.46 352.63 2383.68 496.25 N 17.77 W 496.55 1.21 2487.00 17.18 352.07 2412.32 505.10 N 18.96 W 505.43 1.09 2517.00 16.71 352.02 2441.02 513.76 N 20.17 W 514.12 1.59 2547.00 16.04 352.00 2469.80 522.13 N 21.34 W 522.52 2.24 2577.00 15.40 351.31 2498.68 530.18 N 22.52 W 530.59 2.19 2607.00 14.83 350.79 2527.64 537.91 N 23.74 W 538.35 1.95 2637.00 14.33 350.36 2556.67 545.36 N 24.97 W 545.84 1.70 2667.00 13.66 350.14 2585.78 552.51 N 26.20 W 553.02 2.25 2697.00 13.06 350.36 2614.97 559.34 N 27.38 W 559.88 2.00 2727.00 12.47 349.53 2644.23 565.87 N 28.53 W 566.44 2.05 2757.00 11.98 348.91 2673.55 572.11 N 29.72 W 572.71 1.71 2787.00 11.39 347.68 2702.93 578.06 N 30.95 W 578.69 2.13 2817.00 10.65 346.67 2732.37 583.65 N 32.22 W 584.31 2.56 2847.00 10.37 346.91 2761.87 588.98 N 33.47 W 589.67 0.92 2877.00 9.95 344.81 2791.40 594.11 N 34.76 W 594.83 1.89 2907.00 9.28 343.93 2820.98 598.93 N 36.11 W 599.69 2.27 2937.00 9.02 342.33 2850.59 603.50 N 37.49 W 604.30 1.21 2967.00 8.51 341.65 2880.24 607.85 N 38.91 W 608.68 1.73 2997.00 8.17 339.79 2909.93 611.96 N 40.34 W 612.83 1.45 3027.00 7.73 338.53 2939.64 615.84 N 41.82 W 616.75 1.60 3207.00 4.53 335.5 3118.56 633.66 N 49.56 634.77 1.76 3237.00 4.01 334.7 3148.48 635.68 N 50.5011. 636.82 1.73 3267.00 3.17 331.76 3178.42 637.36 N 51.34 W 638.52 2.88 3297.00 2.22 319.93 3208.39 638.54 N 52.11 W 639.72 3.64 3327.00 1.48 306.25 3238.37 639.21 N 52.80 W 640.41 2.87 3357.00 0.96 304.33 3268.36 639.58 N 53.32 W 640.80 1.74 3387.00 1.07 271.73 3298.36 639.73 N 53.80 W 640.96 1.94 3417.00 0.78 256.97 3328.35 639.70 N 54.28 W 640.94 1.26 3447.00 1.22 220.00 3358.35 639.40 N 54.69 W 640.66 2.54 3477.00 1.21 214.31 3388.34 638.90 N 55.07 W 640.16 0.41 3507.00 1.73 202.34 3418.33 638.22 N 55.42 W 639.49 2.01 3537.00 2.35 204.66 3448.31 637.24 N 55.85 W 638.52 2.09 3567.00 2.79 199.37 3478.28 635.99 N 56.35 W 637.29 1.65 3597.00 2.72 195.92 3508.25 634.62 N 56.79 W 635.93 0.60 3627.00 3.01 195.65 3538.21 633.18 N 57.20 W 634.50 1.00 3657.00 2.96 189.59 3568.17 631.66 N 57.54 W 632.99 1.07 3687.00 2.97 189.55 3598.13 630.13 N 57.80 W 631.47 0.03 3717.00 3.10 188.64 3628.09 628.56 N 58.05 W 629.91 0.48 3747.00 3.39 183.53 3658.04 626.87 N 58.22 W 628.22 1.36 3777.00 3.55 182.43 3687.99 625.06 N 58.32 W 626.42 0.56 3807.00 3.86 177.55 3717.92 623.12 N 58.31 W 624.48 1.48 3837.00 3.89 181.36 3747.85 621.10 N 58.29 W 622.45 0.87 3867.00 4.14 182.87 3777.78 619.00 N 58.37 W 620.36 0.88 3897.00 3.80 181.76 3807.71 616.93 N 58.46 W 618.29 1.15 3927.00 3.88 185.24 3837.64 614.92 N 58.58 W 616.29 0.82 3957.00 3.99 185.50 3867.57 612.87 N 58.77 W 614.24 0.38 3987.00 3.84 184.27 3897.50 610.83 N 58.95 W 612.21 0.58 4062.00 4.04 185.23 3972.32 605.69 N 59.38 W 607.09 0.28 4152.00 3.95 185.28 4062.11 599.46 N 59.95 W 600.87 0.10 4242.00 3.72 188.92 4151.90 593.49 N 60.69 W 594.92 0.37 4332.00 3.85 189.60 4241.71 587.62 N 61.64 W 589.08 0.16 4422.00 3.69 196.76 4331.51 581.87 N 62.98 W 583.37 0.55 4512.00 3.69 198.62 4421.33 576.35 N 64.74 W 577.90 0.13 4602.00 3.63 203.62 4511.14 571.00 N 66.81 W 572.61 0.36 4647.00 3.72 198.08 4556.05 568.31 N 67.83 W 569.95 0.82 4723.00 3.65 201.10 4631.90 563.71 N 69.47 W 565.39 0.27 4813.00 3.99 206.58 4721.69 558.24 N 71.90 W 559.99 0.55 4903.00 4.15 204.41 4811.47 552.47 N 74.65 W 554.30 0.25 4993.00 4.23 210.96 4901.23 546.65 N 77.70 W 548.56 0.54 5083.00 4.62 208.15 4990.96 540.61 N 81.12 W 542.62 0.49 5173.00 4.70 210.62 5080.66 534.24 N 84.71 W 536.35 0.24 5263.00 5.04 215.03 5170.34 527.83 N 88.86 W 530.05 0.56 5353.00 5.08 214.92 5259.99 521.33 N 93.41 W 523.68 0.04 5443.00 _ 5.42 219.32 5349.61 514.77 N 98.38 W 517.26 0.59 5533.00 5.35 218.48 5439.21 508.19 N 103.69 W 510.83 0.11 CALCULATION BASED ON MINIMUM CURVATURE METHOD SURVEY COORDINATES RELATIVE TO WELL SYSTEM REFERENCE POINT ND VALUES GIVEN RELATIVE TO DRILLING MEASUREMENT POINT VERTICAL SECTION RELATIVE TO WELL HEAD VERTICAL SECTION IS COMPUTED ALONG A DIRECTION OF 358.44 DEGREES(GRID) A TOTAL CORRECTION OF 18.40 DEG FROM MAGNETIC NORTH TO GRID NORTH HAS BEEN APPUED HORIZONTAL DISPLACEMENT IS RELATIVE TO THE WELL HEAD. HORIZONTAL DISPLACEMENT(CLOSURE)AT 5533.00 FEET IS 518.66 FEET ALONG 348.47 DEGREES(GRID) ite Printed:09 August 2013 4111 Ferguson, Victoria L (DOA) From: Conrad Perry <conrad.perry@cookinlet.net> Sent: Friday, August 09, 2013 3:44 PM To: Ferguson, Victoria L (DOA) Cc: Schwartz, Guy L (DOA); Davies, Stephen F (DOA); Bettis, Patricia K (DOA) Subject: RE: Olson Creek#1 PTD 212171/API 283-20171-00-00 Attachments: AOGCC_PTD_Olson Amended BHL.docx; 10-401_BHL revision.xls; BHL 401.JPG; BHL Change Cyr Ltr.JPG; Olson #1_MWD Survey Report_08-09-2013 3pm.pdf Victoria, Please find attached the latest survey data,a cover letter and new 401. I also included a scanned and signed cover letter and 401. Actually iPhone pic as my scanner is down. Thanks again for your guidance and help in this. conrad Drilling Manager Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage, AK 99501 (907)433-3816—Office (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356-Cabin conrad.perry@cookinlet.net CONFIDENTIALITY NOTICE:This e-mail transmission and any document,files or previous e-mail messages attached to it,are confidential.If you are not the intended recipient,or a person responsible for delivering it to the intended recipient,you are hereby notified that any review,disclosure, copying,dissemination,distribution or use of any of the information contained in,or attached to this e-mail transmission is STRICTLY PROHIBITED.If you have received this transmission in error,please notify us immediately by forwarding this message to the original sender or by telephone at 907.433.3816 and then delete this message and its attachments from your computer. 1 • Schwartz, Guy L (DOA) From: courtney Rust <courtney.rust@cookinlet.net> Sent: Friday,August 02, 2013 11:02 AM To: Schwartz, Guy L(DOA) Cc: Regg,James B (DOA) Subject: Olson Creek PTD 212-171 7/26/13-8/1/13 Olson Creek Drilling Summary PTD 212-171 7/26/2013 Continue working Stuck Drill String, Bit depth 3785' While working stuck drill string,mix 35 bbl Black Magic fishing pill: 40 sx black magic,35 bbls of Diesel,7 1/2 bbls of fresh water and 65 sx of Barite,allow to blend PJSM, pump 25 bbls of Black Magic on out side of Drill String=2722'=550'above BHA. Left 10 bbls of pill inside Drill String 25 bbls of pill on annulus side at 1630 hrs. Begin pumping intervals of 1 bbl each hour When 100%of pill is outside drill string top of pill est.2322'=324'from 7 5/8"csg shoe. 7/27/2013 Continue working stuck Drl.String,35 bbls of Black Magic pill is outside drill string top of pill est.2322'=324'from 7 5/8"csg shoe. Work pipe aggressively Replace"top"aluminum Drill Joint with Steel Joint after working pipe down hole excessively Continue allowing"Black Magic"pill to soak,(Note: at 0430 hrs Sunday pill will have soaked 24 hrs),while continuing to Paint pump sheds, rig maintenance and adjust flowline to flow nipple Pump top of Black Magic pill to 7 5/8"shoe,periodically working drill string,appears drill string has slipped 18"down hole Changed oil in#2 pump motor,continue painting,rig maintenance. 7/28/2013 Continue working stuck Drl.String,35 bbls of Black Magic pill is outside drill string top of pill est. 1998' 7 5/8"csg shoe. Continue SLM&Rabbiting 5 1/2"Csg,do oil filters on Mud Pump#2 engine Remove flow line from flow nipple,turn flow nipple 3"to right,cut flow line 2"reattach flow line to flow nipple. Clean out cuttings Portable boxes for contingency catching B.M.Pill, clean out open top 200 bbl tank for"B.M."Pill storage. PJSM: Begin mixing 1st batch of B.M.Pill(38 bbls)at 9.5 ppg,work Drill Pipe 20K down and 20K up as per Fishing Tech Pump 1st batch of B.M.Pill into Vac.Truck Begin mixing 2nd batch of B.M.Pill (37 bbls) Spot Black Magic pill with 2370 strokes. Continue allowing Black Magic Pill to soak,work Drill String periodically, pumping 1/2 bbl/hr. 7/29/2013 Continue allowing Black Magic Pill to Soak,Top of pill at 7 5/8"Shoe at 1998',pump 1/2 bbl/hour,work Drl Strg 20K over pull and set 20K down. Prep outside of Mud pits and begin Painting Mud Pits. Clean top side of Pits. Prep inside of Mud Pump Sheds Continue allowing Black Magic Pill to Soak,Top of pill at 7 5/8"Shoe at 1998',pump 1/2 bbl/hour,working Drill String hourly As of 1500 hrs: 15.5 bbls of 2nd pill left inside Drill Pipe, recovered 12.5 bbls of 1st pill=2025'est. bottom of 1st pill inside annulus Continue allowing Black Magic Pill to soak,work Drill String periodically,pumping 1/2 bbl/hr. 7/30/2013 1 Continue allowing Black Magic Pill to Soak,Top of pill at 7 5/8"inside Shoe at 1998',pump 1/2 bbl/hour,Work Drill String Weld 1"straps across upper cross overs connections to prevent backing off at wrong connection below Power Swivel PJSM,pull 110K on Drill String 30K down,work pipe, (no pumping,keeping pill in place). L/D top drill pipe joint and replace with Drilling Mechanical Jars set for 65K up,32K down Begin working Jars until ran out of hydraulic ram extension,L/D Drilling Jars and P/U Fishing Jars continue working Jars to 80K then pull up from 110K to 120K,not gaining ground on this attempt R/U Pollard E-line to conduct"Free Point"procedure. Hang sheave from Crown,make up lubricator into 2"NPT connection at Power head Goose neck,check reading at surface and zero RKB RIH with E-line Free Point tool taking free point checks as RIH with Driller picking up/slacking off as directed Free Point found at 1900',come out of hole,lay down free point tool. Pick up string shot make up with 320 grains. 7/31/2013 RIH w/strg shot back off @ 1890'(WLM)w/3/4 turn to left wk pipe 50K up 20K dn.After shot 20K weight,POH&L/D E-Line equip LID Jars and Prep to L/D Drill Pipe String L/D 63 joints of Drill Pipe= 1890'=46 Jts of Drill Pipe=1382' left in hole w/513'of BHA. Top of BHA=3272' Clean rig floor of Black Magic residue, R/U to test BOPE Test BOPE:Test Annular Bag f/250 t/1500 psi,Pipe Rams,Dart&Floor valve,Choke manifold valves,Kill line valves, HCR/choke line valve, Blind Rams f/250 t/3000 psi, perform a Koomey Performance Time Test Cut bands off of power head assembly,break out saver sub,upper well control valve and xo Drain oil,remove brake caliper and cover plate, lay derrick over,break out swivel packing to inspect spindle and jam nut,Jam nut treads stripped due to jarring. 8/1/2013 Wait on parts to repair Atlas Copco drive head.Parts expected on location 13:00 hrs 8/2/13. Work with Atlas Copco service department on power head assembly procedure. 2 6 0 c 0 Li El o �i 031a) C12' ra 0) Q : a, 3' ,c ' a' ; , ; : : : : : ; -.6 ' -c E Li a t �. , , : , , 4: 0 a c to : : : c: : E : : L E' ; : -p o. : ' �, �. O' cop' y C O O N ") H . . ID N'' o m' L ' ' o a. ' _' rna), o' 3 p, : 5' of m o3' o d,. co 2' �: N 3 U y � c' � '�' Q. N' L • n. 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CO O r r N N N N N N N N N NCO CO COMM CO COCOCOCO O 0 CO MM N N O a) o o c, U c O Ix O 0 0) 0) 0 0) 0 0) O N w ca 00 C CO � - Nr -,...- A a) N - d O O J *kI•E a o c au p Q 0 0 rel d Q ¢ U W ¢ > a)TD ¢ U) 0 • • Schwartz, Guy L (DOA) From: Courtney Rust <courtney.rust@cookinlet.net> Sent: Friday,July 19, 2013 7:37 AM To: Schwartz, Guy L (DOA) Cc: Regg,James B (DOA) Subject: Olson Weekly Summary Olson Creek Drilling Summary PTD 212-171 7/18/2013 Rotate/ Slide Drilling ft 3305'U 3755,work/ back ream on connections and surveys when needed,periodically documenting SPR's Circulate bottoms for short trip&weekly BOPE test. 7/17/2013 Rotate/ Slide Drilling f/2950'U 3015',work/ back ream on connections and surveys when needed,periodically documenting SPR's Continue Rotate/Slide Drilling f/3015'U 3093' Rotate/ Slide Drilling f/3093'U 3305',Pit gain drill 2 mins 7/16/2013 Rotate/ Slide Drilling f/2823'U 2915',work/ back ream on connections and surveys when needed,periodically documenting SPR's Circ/Condition drilling mud,mix sweep and Lubr. Drill N Slide mud product Pump sweep around,did not see a lot of excess cuttings.Pump Drilling Lubricant to bit, leaving majority of pill in drill string Begin Short Trip, POH wash and backream,observed if speed up pulling pipe we would encounter high torque, POH at a steady rate Tight spot w/slight overpull of 4-5K overpull: f/2403'U 2373',reamed thru 2nd time,No overpull 2nd pass C/O Saver sub, inspect Hydraulic hose to off Driller side Tugger.Service Power Head Begin RIH w/o pumping or rotating to 2885' Broke Circ,wash 30'to bottom,Begin Rotate/Slide Drilling f/2915'U 2950' 7/15/2013 k Rotate/ Slide Drilling f/2207'U 2692',work/ back ream on connections and surveys when needed,periodically documenting SPR's Rotate/Slide Drilling f/2692'U 2763' Continue Rotate/Slide Drilling f/2763"U 2823', ream/ wash hole on connections/surveys 7/14/2013 Rotate/ Slide Drilling f/2207'U 2415', periodically documenting SPR's Continue Rotate/Slide Drilling f/2415't/2560" 7/13/2012 Condition mud while installing Brake Assy. PJSM w/BJ, IDA and CIE Conduct F.I.T./L.O.T. Blow down lines, realign choke valves Raise Derrick to allow Atlas Copco to finish installation/testing of Power Head Hydraulic Brake Assy while repairing bad mud pit valves Build Volume in mud pits f/150 bbls to 350 bbls, Repair RPM sensor, review and M/U tour Kill Sheet Circ/Wash to Bottom at 2069' Rotate and Slide Drilling f/2069'U 2207',periodically documenting SPR's 7/12/2013 1 • PJSM:Continue RIH w/BHA and Bit#2 to 1890',R/U to Circ,tagged firm cement at 1893' Break Circ,Drill Cement f/1893't/1920'(Landing Collar at 1920') PJSM: review Drilling/tripping Well Control drills.Conduct a Pit Gain drill response=29 seconds Rig up and conduct 7 5/8"csg.Pressure test at 3000 psi for 30 mins on pressure recorder graph.(Good Test). Drill out Landing Collar f/1920'and continue drilling out cement(shoe track)t/1998',drill out shoe Drill Rat Hole Cement f/1998't/2049' Drill new hole f/2049't/2069' CBU,clean up over shaker Pull bit inside shoe,M/U side entry pump in sub and floor valve Lay over Derrick to allow Atlas Copco Mechanic to install Power Head Brake Hydraulic Assy. Begin Circ/Conditioning Mud down hole/Active Pit system while Atlas Copco Mechanic began install of Brake Assy. Courtney Rust Cook Inlet Energy Drilling Engineer Office-907-433-3809 cell-907-350-0091. 2 �Pv oFI/7 7t THE STATE Alaska Oil and Gas 4 ' °A (L;-onservailon Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue ALAS4P Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Conrad Perry f Drilling Manager i a,-' 7 I Cook Inlet Energy 601 W. 5th Ave., Suite 310 Anchorage, AK 99501 Re: Exploration Field, Exploration Pool, Olson Creek#1 Sundry Number: 313-377 Dear Mr. Perry: 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, Cetf ts Cathy P oerster Chair DATED this /Cf day of July, 2013. Encl. • • 004'42, RECEIVED STATE OF ALASKA /‘4,, JUL 17 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Approved Program 2' Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension ❑ Operations Shutdown❑ Re-enter Susp.Well❑ Stimulate❑ Alter Casing❑ 'Other: ❑ 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: Cook Inlet Energy Development ❑ Exploratory 2• 212-171 3.Address: Stratigraphic 10 Service ❑ 6.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20171-00-00 7. If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: ❑ ZXo #1-� LI Spacing Exception Required? Yes ❑ No 9.Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300062 Exploration- 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): Casing Length Size MD TVD Burst Collapse Structural 157' 10 3/4" 157' 157' N/A Conductor Surface 2,000' 7 5/8" 2,000' 1,960' 6890 psi 4790 psi Intermediate Production 7,592' 5 1/2" 7,592 7,500' 7740 psi 6280 psi Liner Perforation Depth MD(ft): (Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A 2 7/8" EUE L80 N/A Packers and SSSV Type: NONE Packers and SSSV MD(ft)and TVD(ft): NONE 1 .'Attachments: Description Summary of Proposal Q• 113.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory Q• Development ❑ Service ❑ 14.Estimated Date for 17-Jul-13 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑., ' WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Courtney Rust 433-3809 Printed Name onrad P- ry 4 3-3? 6 Title Drilling Manager 7/17/13 Signature / /� Phone Date or, ...e.---y--- COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3—31 Plug Integrity ❑ BOP Test U' Mechanical Integrity Test ❑ Location Clearance ❑ Other: ,Prb -it- 17/ "PP 41. RBDMS Subsequent Form Required: RBDMS JUL 2 3 Z(' / 0 - 11°7 APPROVED BY Approved by: 14...._747 COMMISSIONER THE COMMISSION Date: ? `?1 _ 1 3 RIGINAL. 7`8 '3 Form 10-403 Revised 1/2010 Submit in Duplicate ?vk` cb 0'x"0 1 • 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandon 0 Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Approved Program 0 Suspend❑ Plug Perforations 0 Perforate❑ Pull Tubing❑ Time Extension 0 Operations Shutdown 0 Re-enter Susp.Well 0 Stimulate❑ Alter Casing 0 'Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Cook Inlet Energy Development El Exploratory En212-171 3.Address: Stratigraphic 0 Service rn 6.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20171-00-00 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 20 AAC 25.055 Will planned perforations require a spacing exception? Yes 0 No 0 Olson Creek#1 9.Property Designation(Lease Number): 10.Field/Pool(s): MHT 9300062 Exploration 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): Junk(measured): Casing Length Size MD TVD Burst Collapse Structural 157' 10 3/4" 157' 157' N/A Conductor Surface 2,000' 7 5/8" 2,000' 1,960' 6890 psi 4790 psi Intermediate Production 7,592' 5 1/2" 7,592 7,500' 7740 psi 6280 psi Liner Perforation Depth MD(ft): (Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A 2 7/8" EUE L80 N/A Packers and SSSV Type: NONE Packers and SSSV MD(ft)and ND(ft): NONE 12.Attachments: Description Summary of Proposal ❑r 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory I 141 Developmrj 0 Dvice 0 0 14.Estimated Date for 17-Jul-13 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑Q WDSPL ❑ Suspended 0 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG p Abandoned 0 Commission Representative: GSTOR 0 SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Courtney Rust 433-3809 Printed Name Conradi'33-38/i_ Title Drilling Manager 7/17/13 Signature 7 Orlir'.7 ne Date - ICOMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 / 3 377 Plug Integrity [ BOP Test n Mechanical Integrity Test [II Location Clearance n Other: Subsequent Form Required: 0 0 APPROVED BY Submit Form and Form 10-403(Revised 10/2012) Approved application is valid for 12 months from the date of approval. Attachments in Duplicate • • Cook Inlet Ener _ . gy RECEIVED JUL 1 7 2013 AOGCC July 17, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application to directionally drill Cook Inlet Energy, LLC: Olson Creek#1 API:50-283-20171-00-00 PTD: 212-171 Dear Ms. Foerster, Cook Inlet Energy(CIE) requests permission to change the approved program to bring the wellbore back within its 500' cylinder. The well started skirting up dip and reached a max angle deviation of 25 degrees. The new directional assembly has been able to control and reduce the angle of descent. Attached are the sundry form 10-403, a new well schematic, current surveys, and the directional plan. If you have any questions,please contact me at(907)-433-3804. Sincerely, '.."4"°111/ //// Conrad Pe Drilling Manager—Cook Inlet ergy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax ! • Proposed Well Schematic _ Cook Inlet Energy Olson #1 Proposed Wellbore Diagram Directional Changes 1. h5 10 3/4", 45.5#, L80 0 ,., 057' MD/TVD 0 t e % Chemical injection mandrel 02 .% with'/4"control lines 2-7/8",6.5#,L-80, EUE > Ni! Tubing(Coupling OD=3.668") en 0 •v 02 02 ,r 9 7/8" Hole 7 5/8"29.7#, L-80, LTC ti 3$7 .`r.N. J;�1 @ 1700' TOL ".'!1N- vs.: . N. v�� ?@ 2,000' MD/1,960'TVD Z::5, v .% J J,.. ?% 6 3/4"Hole r ' 3 5 1/2", 17#,L-80,LTC w v 1sIs�v�r,.L @ 7,592' MD/7,500'TVD 31Page HALLIBURTON DIRECTIONAL SURVEY REPORT Cook Inlet Energy Olson 1 Exploratory Cook Inlet Alaska USA AK-MW-0900491711 Measured Vertical V Vertical Depth inclination Direction Depth Latitude Departure Section Dogleg (feet) (degrees) (degrees) (feet) (feet) w (feet) (feet) (deg/100ft) I 0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 TIE-IN 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 164 5.12 399.66 14.44 N 0.90E 14,41 0.56 50000 429 4.39 490.42 21.33 N 1.47E 21.28 0.65 600.00 4.84 .412 609.10 28.27 N 245E 20.20 0.55 700.00 5.45 222 811,09 3822 N 2.42 5 3814 0.63 800.00 6.37 5.81 78018 48.41 N 2,78E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1095.52 88.06 N 1.57E 87.98 0.79 1200.00 9.83 355.59 1194.20 104.18 N 0.52E 104.13 1.09 1300.00 10.86 357.01 1292.58 122.10 N 0.62 W 122.07 1.06 400.00 1146 35808 130060- 141.85 N 1.83 W 141.84 1.12 ,, 13.67 96867 14040 181919N AO W1.72 16110.00 15.57 sots, 1 _ 1Wl.11 N 4:0 W too 17.64 '96778 10 21772s R W 11740toe 1600. 0 20.19 810.70 1776.00 999.07N 7.011 80.97 261 1850.00 21.23 359.03 1822.07 267.72 N 7.34 W 267.82 2.21 2037.00 25.78 359.36 1993.51 342.28 N 8.37 W 342.38 2.44 2067.00 25.49 359.07 2020.56 355.26 N 8.54 W 355.36 1.05 2097.00 24.87 358.49 2047.71 368.02 N 8.82 W 368.13 2.23 2127.00 24.16 357.87 2075.00 380.46 N 9.21 W 380.57 2.53 2167.60 24.38 35718 210246 352.548 073 W 0286 2.92 218740 33.67 357.07 2180.07 404.25 N 16.32 W 400.20 I 2217.00 2221 887.14 215740 410,10 N 10.89 W 41646 1.191 2247.00 21.67 01074 2185.81 4E488 11.49 W 11..IN 2277.00 21.08 35 .03 2213.118, 487.7 9 N 1318 W +1187 2307.00 20.33 355.49 2241.63 448.36 N 12.96 W 448.55 2.54 2337.00 19.61 355.16 2269.82 458.57 N 13.80 W 458.78 2.42 2367.00 18.96 354.46 2298.14 468.44 N 14.69 W 468.67 2.29 2397.00 18.38 354.08 2326.56 478.00 N 15.65 W 478.25 1.98 2427.00 17.74 353.40 2355.08 487.24 N 16.66 W 487.52 2.24 1 2457.00 17.46 352.63 2383.68 496.25 N 17.77 W 496.55 1.21 1 2487.00 17.18 352.07 2412.32 505.10 N 18.96 W 305.43 1.09 1 2517.00 16.71 352.02 2441.02 513.78 N 20.17 W 514.12 1.59 € 254700 16.04 352.00 2469.60 52213 N 21.34 W 52257 2.24 2577.00 15.40 351.31 249868 530.18 N 22.52 W 530.59 2.19 2607.00 14.83 350.79 2527.64 537.91 N 23.74 W 538.35 1.95 2637.00 14.33 350.36 2556.67 545.36 N 24.97 W 545.84 1.70 2667.00 13.66 350.14 2585.78 552.51 N 26.20 W 553.02 2.25 2697.00 13.06 350.36 2614.97 559.34 N 27.38 W 559.88 2.00 2727.00 12.47 349.53 2644.23 565.87 N 28.53 W 566.44 2.05 2757.00 11.98 348.91 2673.55 572.11 N 29.72 W 572.71 1.71 278700 11.39 347.88 2702.93 57806 N 30.95 W 57869 2.13 2817.00 10.65 346.67 2732.37 583.65 N 32.22 W 584.31 2.56 2847.00 10.37 346.91 2781.87 588.98 N 33.47 W 589.67 0.92 287700 9.95 344.81 2791.40 594.11 N 34.76 W 394.83 1.89 Page 1 of 2 • •HALLIBURTON • • Olson 1 Latitude Departure w. (feet) (feet) 2907.00 9.28 343.93 2820.98 598.93 N 36.11 W 599.69 2.27 2937.00 9.02 342.33 2850.60 603.50 N 37.49 W 604.30 1.22 SURVEY COORDINATES RELATIVE TO WELL SYSTEM REFERENCE POI TVD VALUES GIVEN RELATIVE TO DRILLING MEASUREMENT POINT VERTICAL SECTION RELATIVE TO WELL HEAD VERTICAL SECTION IS COMPUTED ALONG A DIRECTION OF 358.44 ` "�' a A TOTAL CORRECTION OF 18.40 DEG FROM MAGNETIC NORTH TO GRID NORTH HAS BEEN APPLIED HORIZONTAL DISPLACEMENT IS RELATIVE TO THE WELL HEAD. HORIZONTAL,DISPLACEMENT CLOSURE)AT 2937.00 FEET :44 DEGREES(GRID) Date Printed:17 July 2013 Page 2 of 2 • • Directional Plan HALLIBURTON WELL DETAILS Olson#1 Ground Level: 291.60 Sperry Drilling +N/-Sv.E'-W Northing Easting Latittuda Longitude Slot 0.00 000648974.51 29986299 61°14'44.21 N151°8'10.73 W SURVEY PROGRAM Project Olson Date 2013-07-16TOOCO130 Vaidated Yes Vercbn: Site: Olson#1 Depth From Depth To Survey/Plan Tool Well. Olson 1F1 100.00 185006 Olsen#1 NSG-CT WL(Olson#1) NSG.CT IML Wellbore: Olson#1 2037130 2877.06 Olsen#1 Rig Surveys(Olson#I) MWD-1-3c Olson#1 WP5.0 0377.00 7592.61 Olson#1 W .0(Olson#1) MWIJ+SC+sag SECTION DETAILS -500- Sec MD Inc AU TW *WS +ELW DLeg TFace VSec Target 1 2677 00 9.94 344 81 2791.40 594.10 -34 777 0.00 0.00 594.633 2 7592.6 2.68 174.69 741610 441.76 -30.74 0.00-17785 442.49 3 3592.311 2.68 17489 341810 441.76 -30.74 2.00 780 442.42 Olsen#I 131-ILL 0- REFERENCE INFORMATION 500- Co-ordinate(WE}Reference:Wel Olson#1,Grid North Vertical(TVD)Reference:Actual 306.908(376.9gx1.6GL+15.3K8))J Measured Depth Reference:Actual 306.90ft(306.9o(291.6GL415.3K8)) Calculation Method.Minimum Curvature 1000- Cook Inlet Energy 1500- Calculation Method.Minimum Curvature - Error stern ISCWSA - ScanMethod Closest Approach 30 - 7 55/8. Error Surface.Elliptical Conk 2000- Warning Method.Error Rate CASING DETAILS 2$00- TVD MD Name Size 1960.07 200000 7 E.5 7.62 7500.00 7692 61 51/2 550 _ - Cason#1 Rrg Suvg&__ _ E3000- o - Start Dir 2°1100'•2877'MD,2791 4WD 177.85°LT TF 0 - V500- End Dir:3506.34'MD,3418.19'TVD at A - u _ .0000- > - 2 - 4530- 5000- 5500- 6000- 6600- 7000- Olsen#1 8HL5 1/2" Total Depth:7592.61'MD,7500'TVD 7500 Olson#1 W4'5 0 -tillttliTriir ii ( ir11111 [ iiiiri � r -2000 -1500 -1000 -500 0 600 1000 1500 2000 2600 3000 3500 4000 4500 5000 Vertical Section at 358.44°(1000 0!13) 5Ipage • • HALLIBURTON A3Je08 Olson SECTION DETAILS Site: Olson 1g1 Sat eU Inc Axl TVD 4814S 489W 13Leg TFesc V6ec Tared WW1: Olson 781 I 87700 9.94 344 81 2791.40 59410 -34.77 0.00 000 59383 2 Sperry Grilling Wellborn. Olson a P'1 3 7992.61 289 17418 7500.00 441.7766 -37.74 006 1 0.00 x.42 Olsen44 BNL Olson SI 144,5.0 Cook Inlet Energy COMPANY DETAILS. Cook did Snug). Calculation Method:Mnimum Curvature Error System:ISCWSA Scan Method-Closes)Approach 3D - Start Da moo' 287 MD,2791.41VD:17725°LTTT FngMeor thoe.d-ErrorRncal ohde Fad Dir:350634'MD,3418.19'TVD _ warning Method-Error Rano 640— __ - -- -'OIacm#1 Rig Sia-sop CASING DETAILS 560— 1� TVD MD Nem* Size 1960 07 2000.00 758"762 909'aoont 734080 79261 612"550 484_ Olson Ni WP5.0 ___- 490- 5 12' Olsen 61 BTTL a320— , 8 • _ 75/8" •1 • r-+.240— Total Dept:7592.61'MD,7500' a Y 7 Y 1150= 7 I I 1 e - II 1 80— 4 1 - 4 I !.• 0- I - I Olaen#1 MD'Rdjpt - I REFERENCE INFORMATION 20— 1 Cowdinete(WE)Reference: Wal Olson el-Ord North 1 I Vodkas(hDp))1Reknnt*. pActual 306900 ¢�/(��gn1�011)61166L+16 308) 11 11 dMuon BAMCed'-41,....Cuir Th" IGL+15381) -160— 1 1 I I WELL DETAILS Olson Cl .oto— 11 29160 y 4495 00I-W No6ldn G&Hinround lysral'. La8mde Longitude Slot • I 0.00 034 2648974.51 19944299 6r 1444.21 N16113.1023 W 320— S0/R0EY PROGRAM • Date 2013-07-161000030 NFdated.Yes Nruon -100— - Dep*Flom Depth To ShnWh*y3Tool 100.01 185000 Olsen el N0GCT WL((0aon RI) 1466-C1 WL 2037110 2877.00 Olsen NI Rig Socio m n� M.VD+SC+eag (Moon WI) AttiDeSD ,_- 267700 79261 Olson al 8Ri O OObb 480— -_ 400 400 420 -240 -160 220 8 80 In 240 328 400 480 560 640 West{-)/Ee0(+)(20D Win) Wage • • Halliburton Company HALLI B U RTO N Standard Proposal Report rDatabase Sperry 16-;OD LFiealC;b6rtthfetRelserrlbes' Well Olson#1 t orhpany: Cook Inlet Energy IVO Reference: Actual 0 306.90ft(306.9=(291.6GL+15.3K13)) "Project: Olson MD Reference: Actual @ 306.90ft(306.9=(291.6GL+15.3KB)) Site: Olson#1 North Reference: Grid Well: Olson#1 Survey Calculation Method: Minimum Curvature Wellbore: Olson#1 ��` Olson#1 WP5.0 Project Olson.. Map System: US State Plane 1927(Exact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927(NADCON CONUS) Using Well Reference Point Map Zone: Alaska Zone 04 Site Olson#1 Site Position: Northing: 2,648,974.51 ft Latitude: 61°14'44.21 N From: Map Easting: 299,862.99ft Longitude: 151°8'10.73 W Position Uncertainty: 0.00 ft Slot Radius: in Grld Convergence: -1.00° Well Olson#1 Well Position +NIS 0.00 ft Northing: 2,648,974.51 ft Latitude: 61°14'44.21 N +E1-W 0.00 ft Easting: 299,862.99 ft Longitude: 151°8'10.73 W Position Uncertainty 0.00 ft Wellhead Elevation: ft Ground Level: 291.60 ft Wellbore Olson#1 Magnetics Model Name Sample Date Declination Dip Angle Field Strength O (°) MT) User Defined 7/52013 0.00 0.00 0 Design Olson#1 WP5.0 Audit Notes: Version: Phase: PLAN Tle On Depth: 2,877.00 Vertical Section: Depth From(TVD) +NIS •EJ.W Direction (n) (n) (ft) (°) 15.30 0.00 0.00 358.44 Plan Sections Measured Vertical TVD Dogleg Build Tam Depth Inclination Azimuth Depth System *WS 4E/-W Rate Rats Rate Tool Face (n) (°1 (°) (ft) II (ft) (R) (°Nowt) (11002) ('MOOR) e) 2,877.00 9.94 344.81 2,791.40 2.484.50 594.10 -34.77 0.00 0.00 0.00 0.00 3,506.34 2.68 174.89 3,418.19 3,111.29 632.02 -47.74 2.00 -1.15 -27.00 -177.85 7,592.61 2.68 174.89 7,500.00 7,193.10 441.75 -30.74 0.00 0.00 0.00 0.00 71162013 5:00:44PM Page 2 COMPASS 2003.16 Build 73 7IPage • • Halliburton Company HALLIBURTQN Standard Proposal Report Daielias'e .Sperry 16 PROD `Local Crrsordlnate'Reference Well Olson#1 Company: Cook Inlet Energy TVD Reference: Actual @ 306.90ft(306.9=(291.6GL+15.3KB)) Project: Olson MD Reference: Actual iii 306.908(306.9=(291.6GL+15.3KB)) Site: Olson#1 North Reference: Grid Weil: Olson#1 Survey Calculation Method: Minimum Curvature Wellbore: Olson#1 Design: Olson#1 WP5.0 Planned Survey Measured Vertical Map Map Depth Inclination Azimuth Depth TVDss' +N/48 +E/-W Northing Easting DL8 Vert Section (ft) e) C) (ft) ft (ft) (ft) (ft)` (ft) 2,484.50 2,877.00 9.94 344.81 2,791.40 2,484.50 594.10 -34.77 2,649,568.61 299,828.22 0.00 594.83 Start Dir 2°1100':2877'MD,2791.47VD:177.85°LT TF 2,800.00 9.48 344.71 2,814.07 2,507.17 597.84 -35.79 2,649,572.35 299,827.20 2.00 598.59 3,000.00 7.48 344.10 2,912.97 2,606.07 612.05 -39.74 2,649,586.56 299,823.25 2.00 612.90 3,100.00 5.49 343.06 3,012.33 2,705.43 622.88 -42.92 2,649,597.39 299,820.07 2.00 623.82 3,200.00 3.49 340.83 3,112.02 2,805.12 630.33 -45.31 2,649,604.84 299,817.68 2.00 631.34 3,300.00 1.52 332.78 3,211.92 2,905.02 634.39 -46.92 2,649,608.90 299,816.07 2.00 635.43 3,400.00 0.64 202.11 3,311.91 3,005.01 635.05 -47.74 2,649,609.56 299,815.25 2.00 636.11 3,500.00 2.55 175.29 3,411.86 3,104.96 632.31 -47.77 2,649,606.82 299,815.22 2.00 633.37 3,506.34 2.68 174.89 3,418.20 3,111.30 632.02 -47.74 2,649,606.53 299,815.25 2.00 633.08 End Dir :3506.34'MD,3418.19'TVD 3,600.00 2.68 174.89 3,511.76 3,204.86 627.66 -47.35 2,649,602.17 299,815.64 0.00 628.71 3,700.00 2.68 174.89 3,611.65 3,304.75 623.00 -46.94 2,649,597.51 299,816.05 0.00 624.05 3,800.00 2.68 174.89 3,711.54 3,404.64 618.34 -46.52 2,649,592.85 299,816.47 0.00 619.38 3,900.00 2.68 174.89 3,811.43 3,504.53 613.69 -46.11 2,649,588.20 299,816.88 0.00 614.72 4,000,00 2.68 174.89 3,911.32 3,604.42 609.03 -45.69 2,649,583.54 299,817.30 0.00 610.05 4,100.00 2.68 174.89 4,011.21 3,704.31 604.38 -45.27 2,649,578.89 299,817.72 0.00 605.39 4,200.00 2.68 174.89 4,111.10 3,804.20 599.72 -44.86 2,649,574.23 299,818.13 0.00 600.72 4,300.00 2.68 174.89 4,210.99 3,904.09 595.06 -44.44 2,649,569.57 299,818.55 0.00 596.05 4,400.00 2.68 174.89 4,310.88 4,003.98 590.41 -44.02 2,649,564.92 299,818.97 0.00 591.39 4,500.00 2.68 174.89 4,410.77 4,103.87 585.75 -43.61 2,649,560.26 299,819.38 0.00 586.72 4,600.00 2.68 174.89 4,510.66 4,203.76 581.09 -43.19 2,649,555.60 299,819.80 0.00 582,06 4,700.00 2.68 174.89 4,610.55 4,303.65 576.44 -42.78 2,649,550.95 299,820.21 0.00 577.39 4,800.00 2.68 174.89 4,710.44 4,403.54 571.78 -42.36 2,649,546.29 299,820.63 0.00 572.72 4,900.00 2.68 174.89 4,810.33 4,503.43 567.12 -41.94 2,649,541.63 299.821.05 0.00 568.06 5,000,00 2.68 174.89 4,910.22 4,803.32 562.47 -41.53 2,649,536.98 299,821.46 0.00 563.39 5,100.00 2.68 174.89 5,010.12 4,703.22 557.81 -41.11 2,649,532.32 299,821.88 0.00 558.73 5,200.00 2.68 174.89 5,110.01 4,803.11 553.16 -40.70 2,649,527.67 299,822.29 0.00 554.06 5,300.00 2.68 174.89 5,209.90 4,903.00 548.50 -40.28 2,649,523.01 299,822.71 0.00 549.39 5,400.00 2.68 174.89 5,309.79 5,002.89 543.84 -39.86 2,649,518.35 299,823.13 0.00 544.73 5,500.00 2.68 174.89 5,409.68 5,102.78 539.19 -39.45 2,649,513.70 299,823.54 0.00 540.06 5,600.00 2.68 174,89 5,509.57 5,202.67 534.53 -39.03 2,649,509.04 299,823.96 0.00 535.40 5,700.00 2.68 174.89 5,609.46 5,302.56 529.87 -38.62 2,649,504.38 299,824.37 0.00 530.73 5,800.00 2.68 174.89 5,709.35 5,402.45 525.22 -38.20 2,649,499.73 299,824.79 0.00 526.07 5,900.00 2.68 174.89 5,809.24 5,502.34 520.56 -37.78 2,649,495.07 299,825.21 0.00 521.40 6,000.00 2.68 174.89 5,909.13 5,602.23 515.91 -37.37 2,649,490.42 299,825.62 0,00 516.73 6,100.00 2.68 174.89 6,009.02 5,702.12 511.25 -36.95 2,649,485.76 299,826.04 0.00 512.07 6,200.00 2.68 174.89 6,108.91 5,802.01 506.59 -36.53 2,649,481.10 299,826.46 0.00 507.40 6,300.00 2.68 174.89 6,208.80 5,901.90 501.94 -36.12 2,649,476.45 299,826.87 0.00 502.74 6,400.00 2.68 174.89 6,308.69 6,001.79 497.28 -35.70 2,649,471.79 299,827.29 0,00 498.07 6,500.00 2.68 174.89 6,408.58 6,101.68 492.62 -35.29 2,649,467,13 299,827.70 0.00 493.40 6,600.00 2.68 174.89 6,508.48 6,201.58 487.97 -34.87 2,649,462.48 299,828.12 0.00 488.74 6,700.00 2.68 174.89 6,608.37 6,301.47 483.31 -34.45 2,649,457.82 299,828.54 0.00 484.07 6,800.00 2.68 174.89 6,708.26 6,401.36 478.66 -34.04 2,649,453.17 299,828.95 0.00 479.41 6,900,00 2.68 174.89 6,808.15 6,501.25 474.00 -33.62 2,649.448.51 299,829.37 0.00 474.74 7/162013 5:00:44F1M Page 3 COMPASS 2003.16 Build 73 8IFage • 0 Halliburton Company HALLIBURTON Standard Proposal Report Database: .Sperry 16 PROD Local Co-ordinate Reference: Well Olson#1 Company: Cook Inlet Energy TVD Reference: Actual @ 306.90ft(306.9=(291.6GL+15.3K8)) I. Project: Olson MD Reference: Actual @ 306.9011(306.9=(291.8GL+15.3KB)) i Site: Olson#1 North Reference: Grid Well: Olson#1 Survey Calculation Method: Minimum Curvature Wellbore: Olson#1 Design: Olson#1 WP5.0 Planned Survey Measured Vertical Map Map Depth inclination Azimuth Depth TVDss +N/-S +Ei-W Northing Easting DLS Vert Section (ft) (') (') (ft) ft (ft) (ft) (ft) (ft) 6,601.14 7.000.00 2.68 174.89 6,908.04 6,601.14 469.34 -33.21 2,649,443.85 299,829.78 0.00 470.07 7,100.00 2.68 174.89 7,007.93 6,701.03 464.69 -32.79 2,649,439.20 299,830.20 0.00 465.41 7,200.00 2.68 174.89 7,107.82 6,800.92 460.03 -32.37 2,649,434.54 299,830.62 0.00 460.74 7,300.00 2.68 174.89 7,207.71 6,900.81 455.37 -31.96 2,649,429.88 299,831.03 0.00 456.08 7,400.00 2.68 174.89 7,307.60 7,000.70 450.72 -31.54 2,649,425.23 299,831.45 0.00 451.41 7,500.00 2.68 174.89 7,407.49 7,100.59 446.06 -31.13 2,649,420.57 299,831.86 0.00 446.75 7,592.60 2.68 174.89 7,499.99 7,193.09 441.75 -30.74 2,649,416.26 299,832.25 0.00 442.42 Total Depth:7592.61'MD,7500'TVD 7,592.61 2.68 174.89 7,500.00 7,193.10 441.75 -30.74 2,649,416.26 299,832.25 0.00 442.42 51/2"-Olsen#1 BHL Targets Target Name -hit/miss target Dip Angle Dip Dir. TVD +NI-S +E/-W Northing Easting -Shape (1 r) (It) (ft) (ft) (ft) (ft) Olsen#1 500'Polygon 1.00 7,500.00 0.00 0.00 2,648,974.51 299,862.99 -plan misses target center by 442.82ft et 7592.6111 MD(7500.00 TVD,441.75 N,-30.74 E) -Circle(radius 500.00) - Olsen#1 450'Radius 1.00 7,500.00 0.00 0.00 2,648,974.51 299,862.99 -plan misses target center by 442.8211 at 7592.6111 MD(7500.00 TVD,441.75 N,-30.74 E) -Circle(radius 450.00) Olsen#1 BHi. 1.00 7,500.00 441.75 -30.74 2,649,416.26 299,832.25 -plan hits target center -Point Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter (ft) (ft) Name (In) PN 2,000.00 1,960.07 7 5/8" 7.62 9.87 7,592.61 7,500.00 512" 5.50 6.75 Plan Annotations Measured Vertical Local Coordinates Depth Depth +N!-S +E/-W (111 (ft) (It) (ft) Comment 2,877.00 2,791.40 594.10 -34.77 Start Dir 2°/100':2877'MD,2791.4'TVD:177.85°LT TF 3,506.34 3,418.20 632.02 -47.74 End Dir :3506.34'MD,3418.19'TVD 7,592.60 7,499.99 441.75 -30.74 Total Depth:7592.61'MD,7500'TVD 7/162013 5:00:44PM Page 4 COMPASS 2003.16 Build 73 91Page . • Cook Inlet Energy Olson Olson #1 Olson #1 Olson #1 Olson #1 WP5.0 Anticollision Summary Report 16 July,2013 10IPage • • Halliburton Company Anticollision Report Company: Cook Inlet Energy Local Co-ordinate Reference: Well Olson#1 Project: Olson TVD Reference: Actual @ 306.90ft(306.9=(291.6GL+15.3KB)) Reference Site: Olson#1 MD Reference: Actual @ 306.9011(306.9=(291.6GL+15.3KB)) Site Error: 0.0011 North Reference: Grid Reference Well: Olson#1 Survey Calculation Method: Minimum Curvature Well Error: 0.0011 Output errors are at 2.00 sigma Reference Wellbore Olson#1 Database: .Sperry 16 PROD Reference Design: Olson#1 WP5 0 Offset TVD Reference: Offset Datum Reference Olson#1 WP5.0 Filter type: GLOBAL FILTER APPLIED:Al wellpaths within 200'+100/1000 of refere Interpolation Method: MD Interval 100.00ft Error Model: ISCWSA Depth Range: Unlimited Scan Method: Closest Approach 3D Results Limited by: Maximum center-center distance of 957.73ft Error Surface: Elliptical Conic Survey Tool Program Date 7/162013 From To (ft) (ft) Survey(Wellbore) Tool Name Description 100.00 1,850.00 Olsen#1 NSG-CT_WL(Olson#1) NSG-CT_WL Continuous north-seeking gyro on wireline 2,037.00 2,877.00 Olsen#1 Rig Surveys(Olson#1) MWD+SC Fixed:v2:standard dec&axial correction 2,877.00 7,592.61 Olson#1 WP5.0(Olson#1) MWD+SC+sag Fixed:v2:standard dec&axial correction+sag Summary Reference Offset Centre to No-Go Allowable Measured Measured Centre Distance Deviation Warning Site Name Depth Depth Distance (ft) from Plan Offset Well-Wellbore-Design (ft) (ft) (ft) (ft) Olson#1 Olson#1-Olson#1-Olson#1 Rig Surveys 2,877.00 2,877.00 0.03 13.17 -13.14 FAIL- 7/162013 5:03.17PM Page 2 of 3 COMPASS 2003./6 Buik!73 11IPa • Ill Halliburton Company Anticollision Repoli Carpany. Cook Inlet E nergy Local Co-0Irtinate Reference Well Olson#1 Project Olson TVD Reference: Actual @ 306.906(306.9=(291 6GL-15.3KB)) Reference Site: Olsen#1 MD Reference: Actual @ 306.906(306.9=(291.6GL+15.3KB)) • Site Error: 0.0011 North Reference: Gad Reference Well: Olsen#1 Survey Calculation Menial: Minimum Curvature Well Error. 0.004 Output errors are at 2.00 sgma Reference Wellbore Olson#1 Database: .Sperry 16 PROD Reference Design: Olson#1 WP5.0 Offset TVD Referent" Offset Datum Reference Depths are relativeto Actual @ 306.904(3069= Coordinates are relative to:Olson#1 Offset DepthsarerelativetoOffsetDaum Coordinate Syatem is US State Plsie 1927(Erred solution),/riaata Zone 04 C eriral Meridian is 150'0'0.0J W° Grid Convergence at Surface is-1.00° Ladder Pict , 1000 � ' 1 I I J J J 1 1 G I 750 ci I 1 I C I o _.. J J __ __J J ____J ___ _ 1 4 m 1 I N 1 1 Q1 Q co 500 m r 1 co 1 U J 0 NI I I of 250 1 1 I 1 I 1 1 I 1 1 1 I 1 I I I 1 I 0 650 1300 1950 2600 3250 3900 Measured Depth(650 iU in) LEGEND -f,;. Olson N1,0 ori NI,Olson N1 Rig Surveys lA -40- Olson NI WPSO 7/113/2013 5:03:17AM Pays 3 of 3 COMPASS 200.16 Build 73 12IPage ;� • • Schwartz, Guy L (DOA) From: Conrad Perry <conrad.perry@cookinlet.net> Sent: Sunday,July 14, 2013 8:23 AM To: Schwartz, Guy L(DOA) Cc: Bettis, Patricia K(DOA); courtney.rust@cookinlet.net; drilling.foreman@cookinlet.net; 'Greg Kirkland'; 'David Hall'; 'Tim Jones' Subject: Olson Creek#1 PTD 212171/API 283-20171-00-00 Attachments: Olson #1_MWD Survey Report_07-14-2013.pdf Guy/Patricia, The 9 7/8" hole walked up dip on Olson Creek and could not be controlled by WOB. In fact,the angle accelerated the last 200'to 25 degrees. We have a steerable motor and MWD in the hole and are correcting the well bore back to vertical with surveys every 100', however,we may exceed the 500' distance from center of well bore in doing so. The Olson Creek well is in the center of the section (see attached plot) and we have over 600'to go before we would get within 1500' of a section line. We have the lease (section 1)to the West, however,we do not have the lease to the North. I am confident we will stay a minimum of 1500' away from any section line, however,we will attempt to bend the well toward the west while dropping angle. I have attached the latest survey data. We are aware that should the well enter into an area where a spacing exception would be required,we cannot produce or test that well until that exception is given. conrad Drilling Manager Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage, AK 99501 (907)433-3816—Office (907) 727-7404-Cell (907) 344-0584- Home (907) 260-5356-Cabin conrad.perry@cookinlet.net 1 • • Olson Creek #1 - Well Location TT14N, R10W 36 3 2,640' 1 5 SEC6 T13N,R1OWSMAK 7 8 T13N, R10W Olson Creek#1 Cook Inlet Energy N: 2649155.0 CONFIDENTIAL E: 299850.0 Project Location:Olson LAT: 61 14' 45.985" N scats=1,e000 LONG: 151 8' 11.055" W o 1500 9000 .soon ASP ZONE 4 NAD 27 Group US Star Rano 1927 System arra Zona a Daum HAD 1927114DCONCOMA) EOpaaa Cad,*1666 XMn Maas) 292t6900 30825200 YiM'.M1a) 2640674 50 265646650 LareSel lan Mau.61 222541 61 266495 14r9e4e(JM,MW) -191 176136 •151089402 Bess MOD Oifon CM*st W1111 t.00aDon 2 Olson Creek#1 6/25/2013 Pick up BHA#1. r Tag up at 160'.Pick up drilling connections-Kelly valve&cross overs Circulate.Commission circulating system&pumps.Increase pump rate as dictated by shaker.Rate up to 350 GPM. Drill from 157'to 170'.WOB 5,RPM 60,GP 350(limited by shaker). Shut down due to excessive heat in mud pump room.Ventilate mud pump room. Drill from 170'to 206'. WOB 5-10 K,RPM 60,GP 350(limited by shaker). Mud pump repairs.Go through it 1 mud pump valving.Number 2 pump rotary seal failed on pump clutch. Circulate with#1 pump while working on#2.Shut down#1 pump due to fuel leak at engine fuel header. Work pipe while making repairs to both pumps.Replaced Caterpillar fuel line on#1 pump with fuel line from#2 pump. Light drilling with one mud pump from 201'to 216'.WOB 2,SPM 90,230 GPM. 6/26/2013 Drilling from 216'to 231'with one pump.RPM 80 WOB,2-3,237 GPM at 120 psdi. Circulate&commision#1 mud pump,reciprocate pipe. POH into conductor shoe. Circulate&commision#1 mud pump. Shut down#1 pump due to antifreeze leak on Cat 379 engine.Remove items from#1 pump and set up#2 pump for circulation. In the conductor shoe-run#2 pump at 100 spm commisioning pump. Contacted supply houses and ordering repair parts. 6/27/2013 Wait on repair parts for Cat 379 mud pumpm engines. Received new mud pump rotary air swivels. Received new fuel lines for#1 mud pump 379 engine. Repair seal rings&gaskets for 379 engine cooling manifold due to location 6/28 13:00 hrs. ��L 6/28/2013 MV16N Wait on repair parts for Cat 379 mud pump engines. Received critical parts on location.Make repairs to#1 379 mud pump engine RIH to bottom. Drilling from 231'to 413'.WOB 7-9,RPM 80,250 GPM at 200 PSI. Repair Rig sense PVT system.Change drill connections for 2 7/8"drill pipe. 6/29/2013 Reset Rigsense PVT system. Drill from 413'to 504" Circulate&survey.First run misrun with 7 deg instrument.Second survey with 14 degree instrument recorded 15 deg.deviation. CBU&run third survey at 504'Recorded 15 deg.deviation.Both surveys run on 14 deg instrument. Pull to 414'. Survey at 414'.Recorded 14 degs deviation on the 14 deg instrument. Pull to 321'. Survey at 321'.Recorded 15 deg deviation on the 14 deg instrument. Tight at 315'.Back ream out and circulate 321'to 231'. Survey at 231'.Recorded 15 degs deviation on the 14 deg instrument. Pull to 139'.No problems. Survey at 139'.Recorded 15 deg deviation.Take second shot off of the crows foot.Same results with 15 deg deviation. Lay down one 6.25"drill collar. Survey at 108'.Recorded 15 degs deviation on the 14 deg instrument. Found survey instrument assembled incorrectly.Surveyed at 108'at 1 deg deviation. Pick up tools&RIH. 6/30/2013 RIH. Ream 30'to bottom.CBU with sweep.Good results-hole clean. Survey at 504'.Recorded 4 deg deviation. 1 Drilling from 504'to 564' Valve drill,flow check.Rig service.Function diverter.Knife valve opened in 22 seconds.Annular closed in 25 seconds. Drill from 564'to 714'.WOB 5-7K,RPM 85,450 GPM at 560 psi. Circulate with#1 pump while looking over#2 pump clutch.Clutch dragging.Changed air clutch quick release valve. Drill from 714'to 898'.WOB 5-7K,RPM 85,1600 ft lbs torque,450 GPM at 655 psi. CONFIDENTIAL w�u�\✓\I%%� s� THE STATEAlaSliCr a Oil anci Gas ofALAsKA ,,,_,,ariservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue vp,ALAS� Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Conrad Perry Drilling Manager Cook Inlet Energy,LLC 601 W. 5th Ave. Anchorage,AK 99501 Re: Exploratory Field, Exploratory Pool,Olson Creek Well#1 Cook Inlet Energy, LLC Permit No: 212-171 (revised) Surface Location: 2620'FWL, 2886'FNL, T13N, RI OW, SEC. 6, SM Bottomhole Location: 2620'FNL, 2886'FNL,T13N, RI OW, SEC. 6, SM Dear Mr. Perry: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit supersedes and replaces the permit previously issued for this well dated November 29, 2012. All future Permit to Drill applications must be submitted on updated form 10-401 (updated 10/2012). 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, 1°° LeA4,4- , athy P. erster Chair 5 DATED this day of June, 2013. STATE OF ALASKA ALPtOA OIL AND GAS CONSERVATION COM ION JUN 1 2 2013 PERMIT TO DRILL K�w `` 20 AAC 25.005 6 V 1 eQ 1a.Type of Work: lb.Proposed Well Class: Development-Oil H Service- Winj U Single Zone ❑ lc.Specify if well is proposed for: Drill E Redrill ❑ Stratigraphic Test❑ Development-Gas❑ Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory ❑� ' Service- WAG ❑ Service-Disp ❑ 1"' cll'1I') Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket Q Single Well❑ 11.Well Name and Number: COOK INLET ENERGY,LLC Bond No. 61212870 OLSON CREEK WELL#1 - 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7500' , TVD: 7500' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): EXPLORATORY Surface: 2620'FWL,2886'FNL T13N R1OW Sec.6 SM MHT 9300062 - Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 2620'FWL,2886'FNL T13N R10W Sec.6 SM• MHT 9300062 11/20/2012 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property:BIW 2620'FWL,2886'FNL T13N R1 OW Sec.6 SM• 5483 ' ''•0°°'2,644;11-FNL,2,640'-FEL 4It4I 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 323.4 15.Distance to Nearest Well Open Surface: x-299747 y- 2649260.14 Zone- 4 GL Elevation above MSL: 306- to Same Pool: N/A 16.Deviated wells: N/A Kickoff depth: feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 3744 psi . Surface: 2994 psi 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 13 1/2" 10 3/4" 45.5# L-80 LTC 200' 0 0 200' 200' driven 9 7/8" 7 5/8" 29.7# L-80 LTC 2000' 0 0 2000' 2000' 455 sxs 6 3/4" 5 1/2" 17# L-80 LTC 5800' 1700 1700 7500' 7500' 381 sxs 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 easured): Casing . . - Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production -r Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat Q . BOP Sketch❑ Drilling Program ❑ Time v.Depth Plot ❑ Shallow Hazard Analysis Q Diverter Sketch❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 11-Jun-13 22. I hereby certify that the foregoing is true and correct. Contact Courtney Rust 433-3809 Printed Name onrad Perry Title Drilling Manager Signature Phone 907-433-3816 'Date 6/11/2013 Commission Use Only Permit to Drill API Num er: Permit Approval1 See cover letter for other Number: cD I 17-I 50-,?83- a0/7-1-00 - 00 Date: \\\aA\\'a. requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: ❑ Other: ys 3 ) (Si. / / 5- Samples req'd: Yes Q No❑ Mud log req'd: Yes ❑ No❑ / y� HZS measures: Yes❑ No❑l Directional svy req'd: Yes ❑ No❑ /L k f , w Ik SLt ysf td.[r(�' %nc.I,ncf'`� SuN/zy t/r'J'F..cl. ?1k3 (,It'd13 V`��" i . l �,` ES 1�'ND Ser r Su -i rle 4, {-es �x(�)h an r� + , (Q Y # / APPROVED BY THE COMMISSION DATE: c,_ 21 — /3 ,COMMISSIONER '/t•s3 Form 10-401(Revised 7/2009) ThiselfRsF lGj' tth4t1t. 0m the d. a of approval(20 AAC 25.005(g)) Submit in Duplicate o \\I)1tk Cook Inlet Energy_ JUN 12 2013 AOGCC June 11, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Cook Inlet Energy, LLC: Olson Creek#1 API: 50-283-20171-00-00 Dear Ms. Foerster, Cook Inlet Energy(CIE) requests permission to amend the surface location for the Olson Creek #1 well (PTD#212-171) to reflect the actual location of the conductor. Please find the new plat and 10-401 form attached. If you have any questions,please contact me at(907)-433-3816. Sincerely, #1" / &'‘yz Conrad Perry Drilling Manager—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • • 36 31 • • iti ) SECTION LINE NOT TO SCALE 1 6 FND BLM MON SECTION CORNER N:2651908.705' E:297287.602' EL:322.405' / • Q � SECTION 6 T13N R10W v 0 2886'FN CO LU /e ou. ° z w z J z 0 0 AS BUILT WELL CoLu OLSON CREEK NO.1 N:2648974.511' E:299862.999' / LAT:61°14'44.211"W / LON: 151°08'10.726" NAD27 ASP Z4 ELEV:291.6(NAVD88) 41 2620'FWL 3 LIMITS EXISTING GRAVEL PAD NOTES 1. BASIS OF HORIZONTAL CONTROL:NAD83 US FEET POSITION (EPOCH 2003)AND VERTICAL CONTROL(NAVD88)IS AN OPUS _ `���OF•'1 ,1,0 l SOLUTION FROM NGS STATIONS TSEA,AC51 AND ANC2 TO 41z.:,.. ,��OF q�,1,0 le ESTABLISH CP-39. THE ALASKA STATE PLANE COORDINATES NAD 27 ZONE 4 IN FEET ARE: N=2649260.142 * 49I1i *�� NORTH E=299747.051 i i ELEV.=306.233(NAVD88) / N e... •... , i 2.SECTION LINES SHOWN ARE PROTRACTED VALUES ADJUSTED � I��: •:. STAN 63 SIANE TO MATCH FOUND BLM CORNER. SCALE ,Ii)<<PFo-''PM'''�`J-` WERE DONE3. DATUM RUS NG CORPSCON6 OFTWARENSFORMATIONS(NAD83 ASPZ4 TO NAD27 ASPZ4) I I 2001 4io fit)�Il •vo.N.%�`, J FEET PROJECT REVISION: 1 COOK INLET ENERGY DATE: 6/08/2013 OLSON CREEK NO. 1 DRAWN BY: ICE _ Cook Inlet Enemy AS-BUILT SURFACE LOCATION SCALE: 1•=200' NAD 27 PROJECT NO. 123033 6ENGINEERING I MAPPING/SURVEYING/TESTING CansuLtinglnc P.O.BOX 468 SOLDOTNA,AK99669 LOCATION SEC. 06 T1 3N R1 0W BOOK NO. 12-17 SHEET VOICE:(907)283-4218 FAX:(907)283-3265AI EMAIL:SAMCLANE@MCLANECG.COM SEWARD MERIDIAN,ALASKA OF 1 • • TRANSMITTAL LETTER CHECKLIST WELL NAME: C&SOAJ c_k_k_K 3 PTD: 21 a.1 1 7-1 _Development _Service /Exploratory _Stratigraphic Test _Non-Conventional FIELD: E yloidziol7 POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - - - . Production in API number are should continue to be reported as a function of the original API number stated between 60-69) above. In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the Pilot Hole pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - - from records, data and logs acquired for well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval Spacing Exception to produce/ inject is contingent upon issuance of a conservation order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than Dry Ditch Sample 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for(name of Non well) until after (Company Name) has designed and implemented a water well Conventional Conve testing program to provide baseline data on water quality and quantity. Well (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are also required for this well: Well Logging Requirements / Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite ✓ curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. / A-I! 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O 2 2 2 m, -O 0 -O, o = O; O. r O 0 0, m a) a) 0, a o c a _ D 5 5 5 co w 0 0 a a 0 5 ¢ a z 0 co 0 0 0 0 < w < ',- a m co 0; 5' N' 2; a a co u) 0,, W °- 552 N ,—(Y) M V c0 CO I 00 6) 0 e- N M at c0 CO N- 00 0) 0 e- N CO 7 CO CO h CO 0) N N N N N N N N N N CO CO CO CO CO CO CO CO CO CO MM I co C 0 CCD I O Q CD NIC Q m y 0" Cp W N c m m p E a - n 0 >' OE N JQ m c Qcn ° Qm 0 ala a'a w a• 0 CD a s �w\ I�j7 s� THE STATE Alaska Oil and Gas N _ !a� 0fl lLl S Conservation Commission k c GOVERNOR SEAN PARNELL 333 West Seventh Avenue Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 David Hall CEO Cook Inlet Energy, LLC 601 W. 5th Ave. Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Olson Creek Well #1 Cook Inlet Energy, LLC Permit No: 212-171 Surface Location: 2640' FNL, 2640' FEL, T13N, R10W, SEC. 6, SM Bottomhole Location: 2640' FNL, 2640' FEL, T13N, R10W, SEC. 6, SM Dear Mr. Hall: Enclosed is the approved application for permit to drill the above referenced exploration well. Cook Inlet Energy, LLC's (CIE) request for a variance to use a 12" diverter line is APPROVED. Per 20 AAC 25.035(c) (1)(a) a smaller diverter line is permitted for smaller holes sizes. CIE is proposing a 9 7/8" surface hole diameter. CIE requests a clarification on the use of a Surface Controlled Sub-Surface Safety Valve (ScSSSV) for the Olson Creek Well #1 completion as defined in 20 AAC 25.265 (d)(2)(C). AOGCC agrees that the remote logging road is not considered public access and a ScSSSV is not required for the completion. 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 S 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, 1 7°4-604L- Cathy '. Foerster dlielay Chair DATED this of November, 2012. cc: Department of Fish & Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMWOON PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: 1 b.Proposed Well Class: Development-Oil ❑ Service- W inj ❑ Single Zone - lc.Specify if well is proposed for: Drill 2 - Redrill ❑ Stratigraphic Test❑ Development-Gas❑ Service-Supply ❑ Multiple Zone Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory 0 - Service- WAG ❑ Service-Disp ❑ 7-''t V Shale Gas ❑ 2.Operator Name: 5. Bond: "Blanket iii Single Well 11.Well Name and Number: COOK INLET ENERGY,LLC Bond No. `` t� GD61212870 . OLSON CREEK WELL#1 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7500' ' TVD: 7500' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): EXPLORATORY , Surface: 2,640'FNL,2,640'FEL T13N R1OW Sec.6 SM - MHT 9300062 7 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 2,640'FNL,2,640'FEL T13N R1OW Sec.6 SM MHT 9300062 11/27/2012 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 2,640'FNL,2,640'FEL T13N R1OW Sec.6 SM 5483 2,640' FNL, 2,640' FEL 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 347.4 15.Distance to Nearest Well Open Surface: x-299850 y- 2649155 Zone- 4 GL Elevation above MSL: 330 feet to Same Pool: N/A 16.Deviated wells: N/A Kickoff depth: feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 3744 psi , Surface: 2994 psi . 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling _ Length MD _ TVD MD TVD (including stage data) 13 1/2" 10 3/4" 45.5# L-80 LTC 200' 0 0 200' - 200' driven 9 7/8" 7 5/8" 29.7# L-80 LTC 2000' 0 0 2000' 2000' 455 sxs 6 3/4" 5 1/2" 17# L-80 LTC 5800' 1700 1700 7500' , 7500' 381 sxs 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 easured): Casing - • - Size Cement Volume MD TVD Conductor/Structural . RECEIVED Surface Intermediate 0V U 1 2012 Production -r CPerforation Depth MD(ft): Perforation Depth TVD(ft): AOG 20. Attachments: Property Plat ❑✓ BOP Sketch Q Drilling Program Q Time v.Depth Plot Q Shallow Hazard Analysis Q Diverter Sketch Q Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements 2 21. Verbal Approval: Commission Representative: Date 18-Oct-12 22. I hereby certify that the foregoing is true and correct. Contact Courtney Rust 433-3809 Printed Name David/ Hall Title CEO • Signature G' �c/ Phone 907-433-3804 Date 11/1/2012 Commission Use Only Permit to Drill API Number ,) Permit Approval See cover letter for other Number: 212- 71 50-2E"-32�l 7/-C ' Date: it V 12, requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed thane. s hydrates,or gas contained in shat s:Ei Other: 1r WC/ .3 i150P (es f Samples req'd: Yes[ No[ , Mud log req'd: Yes Z No❑ �` nL HZS measures: Yes❑ No Directional svy req'd:/Yes ❑ No[ Wee-1LL, IA./0 r l� 5� ,�. a ✓��ll P14 mv. s�b v�� a- ) ,f•f s 1 Z- - 5eo,a,,,�,�..c- r---101-1-)r---101-1-) 1)�f i Q .+.p 4- 1J+.. . (((��f /� AP ROVED BY THE COMMISSION � DATE: 11 - vZ .-- -i /���o� COMMISSIONER l/ -/8.--- , ;v OR 11LI 1 vi L2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submi in Duplicate \y V` _ Cook Inlet Energy_ RECEIVED NOVO 12012 November 1, 2012 AOGCC Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Cook Inlet Energy, LLC: Olson Creek#1 Dear Ms. Foerster, Cook Inlet Energy(CIE) hereby submits a Permit to Drill application for its gas exploration well, Olson Creek#1 located on MHT 9300062, approximately 6 miles north west of Beluga. The well is planned as a straight hole with a total depth of 7,500'. Its purpose is to test the Sterling, Beluga, and Upper Tyonek Sands that were identified in an offset well. • Please note that included in the Permit to Drill is a waivVr request to use a 12"diverter line --`� "nstead of the 16"diverter requirement according to 20 AAC 25.035 1. This is due to the slim 4)e4 9 7/8" surface hole. In addition, CIE requests confirmation that a Sub-Surface Safety Valve is not required for this - k location according to 20 AAC 25.265. There is no public access to the location. Rig#34 will be used to drill this well commencing approximately November 27, 2012 If you have any questions, please contact me at(907)-433-3804. Sincerely, David Hall CEO—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • i Table of Contents Location Schematic 4 Drilling Procedure 5 Formation Integrity Test Procedure 7 Proposed Wellbore Diagram 8 Time vs Depth Plot 9 BOP Sketch 10 BOP Equipment 11 Diverter Sketch 12 Casing Program 25 _ Logging Plan 27 Mud Logging Plan 27 Drilling Fluid Program 28 Solids Control and Equipment 29 Drilling Waste Storage 30 Cementing Program 31 Bit Proposal 37 Regulatory Waiver and Special Procedures 38 31Page • • Location Schematic Olson Creek #1 - Well Location dt T14N, R1OW " 36 3. 2,640' 1 Otseg reek. 2,640' SEC 6 T13N,R1OW SM AK •i I 12 ti T13N, R10W 299600 Olson Creek#1 Cook Inlet Energy N: 2649155.0 CONFIDFNTIAI E: 299850.0 Project Location:Olson LAT: 61 14' 45.985" N Scale=1:18000 LONG: 151 8' 11.055" W1500 3000 4500 ASP ZONE 4 NAD 27 Group:Sy tem:Alas27 ka Zone 04 Datum:NAD 1927(NAL/CON CONUS) Ellipsoid:Clarke 1866 X(Min,Max): 292169.00 308252.00 Y(Min,Max):2640674.50 2656466 50 Latitude(Min,Maxe 61.222541 61.266495 Longitude(Min,Max): -151.179136 -151.089402 Base Map Olson Creek#1 Well Location 4IPage • • Drilling Procedure Pre-Rig Work A. Drive 10 3/4" conductor to minimum of 150' or refusal. Preheat and Weld on Vetco Conventional 11"5M Wellhead according to Vetco Gray protocols. Install two bull plug outlets on 10 3/4" in cellar. B. Drill mouse hole. C. Construct R segue rve Pit according to ADEC permit. D. Lay out matting boards. Rig Work 1. Move in Rig#34. 2. Install and function test 11" diverter system with 12"diverter line 100' out from well center. Ensure diverter is securely anchored. Note: Notify AOGCC of intent to test 48 hours in advance. AOGCC must witness test and rig up. 3. Function Test diverter according to AOGCC inspector. 4. Prepare for spud- Fill pits, mix mud, stage materials. Ensure TIW valve and inside BOP are on Rig floor and connections are suitable for drill pipe. 5. Pick up 9 7/8"Tuff Cutter Tooth bit and BHA. Run in hole.Clean out conductor.Spud well. 6. Drill 9 7/8" hole to 2000'taking single shot surveys every 500'. Make wiper trips as required. a. Mud loggers to be rigged up and operating from spud. b. All drilling breaks are to be circulated up prior to drilling ahead c. Mud density will be maintained between 9.4 to 9.6 as required to control connection gas. d. Excessive connection gas is a sign of insufficient mud weight. Increase mud weight as appropriate. e. 9 7/8" hole may be TD'd ahead of time if mud weight must be increased above 9.8 ppg to control background and or connection gas. f. Run back to bottom on ANY signs of swabbing on trips and circulate bottoms up. Primary sign of swabbing is insufficient fill or flow back while pulling off bottom. g. Trip tank is to be used on all trips with volumes checked every 10 joints or sooner if in tight hole. h. Fill well and then check for flow every 10 joints i. Drill site supervisor to be on rig floor for all trips in surface hole. j. Driller has the authority and responsibility to put well to diverter in case well starts flowing.The diverter is not a well control device, but is to be used to give time for all personnel to clear the rig. 7. Circulate bottoms up and make wiper trip to shoe. Run back to bottom on ANY signs of swabbing. 5I ` agc • I 8. Have the Mud loggers drop carbide that creates acetylene gas and shows up as a gas show toil. " "„ it' determine hole volume. Circulate bottoms up. Pull out of hole. Run back to bottom on ANY to''{ signs of swabbing. Note: Open hole logging is not anticipated in this hole section. " tj`4 9. Rig up Weatherford. Run 7 5/8" casing float collar 40' above float shoe. Run and space out 7 5/8" 29# L-80 LTC casing with+/- 10'of rat hole. Rig up Cement Head. Circulate minimum of one bottoms up. Reciprocate pipe If hole conditions allow. Have safety joints with crossovers made up for 7 5/8"casing near rig floor. 10. Land casing hanger in starting head. Cement 7 5/8" casing with top and bottom plugs with 100 %excess cement(more if carbide indicates). Drain Diverter of any cement. Back out landing joint. 11. WOC for 12 hours. Check for flow. 12. Nipple down diverter. Perform top job if cement is not to surface. Note hanger bypass area is 1". 13. Nipple up 11" BOPs with 3"x5"variable bore rams on top and blind rams on bottom. Test BOPS to 250 psi low/3000 psi high. Test Annular to 1500 psi. Test remainder of BOPE to 3000 psi (choke manifold, kill and choke line etc. Notify AOGCC minimum of 48 hours in advance. 14. Pick up 6 3/4" SKH513D-B1C PDC Drill bit with Steel breaker plate attached, Motor BHA and RIH to shoe. Test 7 5/8"casing to 3000 psi. Drill out floats, shoe track and 20'of new formation. 15. Clean pits, mix new EZ mud.Circulate and condition mud while changing over to KCL/EZ mud system. Perform FIT according to CIE procedures. The minimum leak off test is 13.5 ppg and -r anticipated is 16.1 ppg 16. Drill 6 3/4" hole to 7500'taking surveys every 500'. • Make wiper trips as required. • Always circulate bottoms up prior to any trip. • Trip tank to be used on all trips. Do not pull more than 10 singles before filling hole and check for flow. • Flow Check all drilling breaks. • The mud density will be maintained between 9.5 and 10.1 ppg as required to control _ connection gas 17. Circulate bottoms up. Make wiper trip back to shoe. Circulate and condition hole for logging. Pull out of hole. 18. Rig up and Run Triple combo log on Wireline as directed. Rig down. , 19. Run back in with 6 3/4" Bit and BHA(without motor) to bottom. Circulate and condition hole. Pull out of hole. (if dry hole a separate abandonment program will be written.) 20. Change and test u„p,j rams to 51/2". 21. Rig up and run 5 1/2" 17#L-80 LTC Liner. Install float collar two joints above float shoe,then plug catcher immediately above. Pick up liner hanger packer and RIH on drill pipe setting hanger at 1700'. Pickup landing joint and cementing head. Rig up and Circulate minimum two bottoms up. Reciprocate liner during circulation. Havt lointswit .r, osas?y .r vmade.upfor_5'/�" casing run. 22. Cement 5 1/2" liner. Reciprocate pipe during cementing if possible. 23. Set hanger and packer. Test hanger and hanger packer to 3000 psi. I. Wage 24. Run CBL from TD to TOC. Evaluate log. Note: Ensure 24 hours set time on cement prior to running log. 25. RigupeLine. Run gauge rink Junk basket to TD uSet low a . .above Tyonek g g er permanent packer zone on wireline. >� 26. Perforate Beluga zone. Use shooting nipple and monitor well for flow. et0 27. Set upper permanent packer. 28. Pick up 2 7/8" completion string,seal assemblies and TCP Guns spaced out for Tyonek zone. 29. Tag top packer with locator, pick up and space out tubing. Land tubing hanger. 30. Test annulus to 1500 psi 31. Set BPV. Check well for flow, nipple down BOPs, nipple up and test tree. 32. Open upper sliding sleeve. Displace tubing with N2 or Diesel to proper underbalance. Note: if well is a keeper,annulus must be displaced with appropriate packer fluid and freeze protectior. 33. Close Sliding sleeve. Perforate lower Tyonek zone. . 5 �-�`` 34. Flow test well r '' 16`- eA 35. Set plug in XN nipple below bottom packer. f y;^� 36. Open Beluga zone sleeve. t-1/4°10 l , 1z' 37. Flow test well. . Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs, and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT)are to be conducted as described below: 1. Drill 20'to 25'of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill bit into the casing shoe and close pipe ram preventer. Line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drill pipe pressures at 1/2 bbl intervals. 4. A running plot of pressure versus volume should be kept by the Drill Site Manager while the test is in progress. 5. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 6. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. 7I - i ,.: ° • Proposed Wellbore Diagram Cook Inlet Energy Olson #1 Proposed Wellbore Diagram 10 3/4",45.5#, L80 @200' MD/TVD Chemical injection mandrel with '/4"control lines � 2-7/8", 6.5#, L-80, EUE r i« ' ! . Tubing (Coupling OD=3.668") 9 7/8" Hole 7 5/8"29.7#,L-80, LTC ii3. ?Vm @ 2,000' MD/TVD SU 6 3/4" Hole 6 In5 1/2", 17#,L-80, LTC @ 7500' MD/TVD 8I _. • Time vs Depth Plot OLSON Well Proposed Time vs Depth 10 3/4"Casing at 200' 1000' Drill 9 7/8" Hole 2000' 7 5/8"Casing at 2001 F 3000' s 0. cu 4000' v L f0 i 5000' Drill 6 3/4" Hole 6000' 7000' �._ _._.. __._..___ ,__—. 5 1/2"Casing at 8000' 8000' 0 5 10 15 20 25 30 Days 9jPage 0 • BOP Sketch n n n n n n n 11" 3000# WP BOP 327/8" 11 PIPE RAM 1.74 29 3/8" I 1 BLIND RAM 1.74 t -1..7—\5-1_/"...F-1-- LI— alTII 24" ------116. . i'-- _JJ C—t___ ��� 11.00 -Ur + 1.74 + 1.74 = 14.48 US Gallons to Close 14.48 x 1.98(Useable) x 1.5(Safety Factor) = 43 Gallon Accumulator Required 10IPage I • BOP Equipment 9 7/8" Surface Hole While drilling the 9 7/8" surface hole, a 13 5/8" 5M annular w/ 13 5/8" diverter spool & 12" diverter line will be used: an exception to 20 AAC 25.035 (c)(1)(A), requiring that the diverter line outlet size be at least 16" diameter or (B) at least as large as the hole size being drilled, is requested. 6 3/4" Production Hole An 11" 3000 PSI WP Schafco (Shaffer Equivalent) Spherical BOP system will be used which is configured with an 11" 3000 PSI WP annular preventer, (1) 3000 PSI WP double gate with a set of pipe rams installed sized to fit the pipe being run and a set of blind rams and (1) 11" 3000 PSI WP rated drilling spool. BOP tests will be performed to 3000 psi. The annular preventer will be tested to 1500 psi. 111PaR e 0 • Diverter Sketch Aurora Gas / Aurora Weil Service Surface - Diverter Line Rig Floor Flow Nipple AWS 32" Annular Preventer SIZE 11"Shaffer 3M • DSA Rental 7-9' y ► 11"3M omm 8-10' Ir13-5/8"5M A 13-5/8 5M MA MI ■ I■ 12"Hydraulic Knife Valve 12" 150#ANSI 12" Bluie Lin- 12" I 100ft of 12"0.375"Wall Pip- 30" mi ■ 11-13' t 13-5/8 SM DSA Rental 13-5/8"5M 13-14' *. ,_, ,—, --, ,: 11"5M Wellhead 11".5awor Ground Level=? -------------- ----- — -------------------------------- - ----- ---- ; a iam 0-3/4 rl�l "------------ ------------------ ____ i • Pad Layout '__ _' (__ ♦ T' P-41.444,1”.”4-11/4: 5 V .w _ 1 � t - ; f ~ 0..; c. 7 t_ , K • y ^' 1 -- [-::,,. .. .,. -4, , „- 17 E 1 111 0 01 q -r,- --7:.d d `9 < _l u j1 v !. J 11 7 1t ) (fl 4- r r 1 f 1 t ;r �J `"' i; 1.r T _ i I I ..Jai-. f 1 wv.,%1 j ',.3�. I 5 0 6 ' _�- _.._ ___ / --_._..__.. ._ __. 13 ' Page Wellhead Schematic Ulf GE Oil &Gas 496' 35.7. z-sne'5M i--�' 2-9/1e"5M 2-ens'5M 52 1' 1338' 2.9n6-5M 11'5M al 6'W•t 5' 11'5M _ 1 1 4 ly¢ �. 1-13x16.5M r r _ W1 1 1 1 225.1't0 a l P • • .. t,jL 103/4'Cesmg 2-5M.Cas.rm 1/4•Contol lme 1/4'ConVol line 2-71r Tubing yy This drawing is the property of GE Oil&Gas Pressure Control LP and is considered confidential.Unless otherwise approved in wnting, Olson Creek#1 neither It nor its contents may be used,copied,transmitted or reproduced except for the sole purpose of GE Oil&Gas Pressure Control LP. 10-3/4"x 7-5/8"x 2-7/8" 5M SH2 Wellhead Assembly DRAWN VJK 21 MAY12 APPRV KN 21 MAY12 With M40-CCL Tubing Hanger and Adapter Flange FOR REFERENCE ONLY DRAWING NO. AE21709-B 14 g • • Geo-Mechanical Plot Olson Proposed Geo Mechanical Plot Equivalent Mud Weight(PPG) 8 10 12 14 16 18 20 5terlin 950'+/-95 ' ' 1000 .42000 Beluga 273 '+/-2560' 7 5/8" ____ Calc Pore 3000Pressure i I Tr: 4000 ---__. s —Mud .... Weight G 5000 �__.�__ (Pore Press.+ Drilling 6000 I -- — _ gr cgin) IITTonek 650 ' -- Gradient 7000 5 1/2 8000 —.-- _ 9000 / 15 IPage 41) III Shallow Hazards Analysis October 9, 2012 Statement to Accompany Permit Shallow Gas potential Olson Prospect Area A thorough review of all wells drilled in the vicinity of the planned well has been conducted with the purpose of identifying any potential shallow gas accumulations which could contribute to well control problems during drilling of the surface hole for the proposed well. No problems were identified with shallow gas as a result of studying the surrounding wells. Additionally, several dip seismic lines and one strike line running nearly through the proposed well have been reviewed for seismic anomalies often associated with shallow gas accumulations. No shallow anomalies are apparent from these lines. The two nearest wells drilled to the planned Olson Creek No. 1 were the Force Energy Coffee Creek#1 and the Phillips North Tyonek State 58838 No. 1 which were drilled Approximately 2.6 miles North and 4.5 miles Southwest respectively. Neither well encountered shallow gas hazards as determined from available well information. The Coffee Creek Well was drilled fault separated across a large South thrusting reverse fault. The well was drilled to a TD of 9757' MD/9664' TVD. First trace amounts of C2 were encountered slightly above 3500' with no significant shallow gas encountered. Conditions similar to this well are anticipated for the proposed shallow section of the new well. Although no shallow gas zones are anticipated to be encountered in the proposed well, a continuous two man mud logging unit will be utilized during drilling operations including d exponent and appropriate care will be exercised while drilling this interval to insure adequate well control should a shallow gas zone be encountered unexpectedly. 161 �a. • • Well Information Casing Tops Plugs Texas International Petroleum 30"@ 41.5' Beluga / 55 Sx from TOF @ 6475-6283 Pretty Creek St#1 20"@ 145.8' Tyonek 60 Sx 6014-5900 API 50-283-20043-00 Permit# 174041 13 3/8"@ 2255.0' Cut&Pull 9 5/8"from 3500' Sec 2 Twn 14N Rge 10 W SM 9 8/8"@ 6429.9' Spot 50 Sx from 3500' Location:678' FEL 324' FSL 21'Cmt Plug in 20" Elev.299' GL TD 6570'MD/TVD *Well Plugged and Abandoned Forcenergy 20"@ 90' RKB Tyonek 700' 7,325'-7,900' Cement Plug 13-3/8"@ 1,219' Three Mile Sand 6,756'-7,133' Cement Plug, Coffee Creek#1 RKB 4,780' EZSV @ 6,800' Chickaloon 5,537'-5,785' Cement Plug, API: 50-283-20094-00 Permit No. 197219 9-5/8"@6,715'RKB 6,630' EZSV @ 5,785' 4,009'-4,415' Cement Plug, Sec 19,T14N,R10W,SM Mesozoic 6,935' EZSV @ 4,100' and 4,415' 2,345'-2,631' Cement Plug, Spud:2/13/98,P&A:6/28/98 liner: 7 5/8"from EZSV @ 2,454' Surface-150',Cement Plug, Elevation 620'MSL 6,638' RKB EZSV @150'. TD:9,757'MD/9,664'TVD to 7,288' RKB *Well Plugged and Abandoned Cities Service 30"@ 60' RKB Beluga 2,805' 10,219'-10,319'Cement Plug Lewis River B-01 20"@ 371' RKB Tyonek 6,550' 9,850'-9,950'Cement Plug API: 50-283-20052-00,Permit No. 13-3/8"@ 2,399' Middle Groung 176031 RKB Shoals 8,312' 8,550'-8,650'Cement Plug 6,658'-6,710'Cement Plug,6,710'- Sec. 10,T14N,R9W,SM 9-5/8"@ 8,557'RKB BP,6,656'-EZSV 2,720',3,764'4,480',6,520'- Location:300' FNL, 1500'FEL BP's,3,690'-EZSV Elevation:79' KB 2,500'-2,650' Cement Plug TD: 10,319' TVD/MD Suface-100'Cement Plug. *Well Plugged and Abandoned 17 I a • • Chevron 20"@ 144' RKB Sterling 1,960' 4,036'-4,587' Cement Plug, 13-3/8"@ 1,920' Pretty Creek Unit 224-28 RKB Beluga 3,870' 4,088' Cement Retainer API: 50-283-20081-00,Permit No. 186076 9-5/8"@ 4,849' 4,272',4,587'EZSV Sec.28,T14N,R9W,SM 1,819'-1,925' Cement Plug Location: 762' FNL,2058' FEL 168'BP Elevation: 112'KB Surface-168' Cement Plug TD:5,182'MD/5,010'TVD *Well Plugged and Abandoned Shallow Hazard:Due to aggressive directional drilling in shallow section hole was becoming under gauged,causing high torque in drill string. Cook Inlet Sand Phillips Petroleum 13-3/8"@ 322'MD 1,684' 4,831'-4,964'Cement Plug N Tyonek State 58838#1 9-5/8"@ 1,321'MD Beluga 2,527' 3,931'-4,064'Cement Plug API:50-283-20040-00,Permit No. 173016 7"@ 6,037' MD 3,724'-3,991'Cement Plug Sec.25,T13N,R11 W,SM 3,079'-3,230'Cement Plug Location: 695' FWL, 1679'FSL 2,702'-3,126'Cement Plug Elevation 227' MSL;KB=248.4' 2,135'-2,268'Cement Plug TD:6,063' MD/6,063'TVD 53'-186' Cement Plug *Well Plugged and Abandoned Shallow Hazard:Lost Returns for short time at 1,321'.No signs of down hole problems. Cities Service 30"@ 65' Sterling Surface 11,225'-11,320'Cement Plug East Lewis River#1 20"@ 370' Beluga 4,899' 10,805'-11,225'Cement Plug API: 50-283-20048-00,Permit No. 175006 13-3/8"@ 2,375' Tyonek 7,790' 10,678'-10,805'Cement Plug West Foreland Sec. 18,T14N,R8W,SM 9-5/8"@ 9,884' 11,481' 10,500'-10,678'Cement Plug Location: 1980' FSL, 1,980' FWL liner:7"from 11,225', 10,805' EZSV Retainer Elevation: 15' GR 9,646'to 11,625' 10,678', 10,500',8,012'Retainer TD: 11,636' MD/TVD 6,093'-6,212' Cement Plug 2,205'-2,380' Cement Plug Surface-60' Cement Plug *Well Plugged and Abandoned 18 I €" r • • Cities Service 30"@ 48' Beluga 2,279' Lewis River 1-A 20"@ 363' Tyonek 5,864' API: 50-283-20047-00,Permit No. 175005 13-3/8"@ 1,368' Bell Island 9,142' Sec.2,T14N,R9W,SM 9-5/8"@ 8,147' Chickaloon 9,414' Location: 1,600' FWL, 1,700' FNL Elevation: 118' KB TD:9,480'TVD Shallow Hazard: 13-3/8"Casing stuck at 1,368'without breaking circulation.Were able to cement pipe. Standard Oil 20"@ 353' 8,820'-9,141' Cement Plug Lewis River 13-2 13-3/8"@ 2,361' 7,754'-7,965' Cement Plug API:50-583-20011-00,Permit No. 168001 9-5/8"@ 9,088' 7,697'-7,754' Cement Plug Sec.2,T14N,R9W,SM 5,200'-5,303' Cement Plug Location: 3,280'FSL,658'FEL Surface-224' Cement Plug Elevation: 135'KB TD: 11,625'MD *Well Plugged and Abandoned Upper Beluga Union Oil 20"@ 75' 2,700' Middle Beluga Lewis River Unit C-01 13-3/8"@ 368' 3,500' API: 50-283-20061-00,Permit No. Lower Beluga 178075 9-5/8"@ 2,409' 5,500' Sec.35,T15N,R9W,SM 7"@ 6,569' Location:0' FWL, 1,000'FSL Elevation: 115' KB TD:6,559'TVD/MD Well P&A with 40 bbls of 15.8 ppg cement on top of Retainer set at 2,671' Cities Service 20"@ 359' Beluga 2,096' 7,135'-7,235' Cement Plug Lewis River D-01 13-3/8"@ 2,395' Tyonek 6,210' 6,180'-6,280' Cement Plug API: 50-283-20068-00,Permit No. 180141 9-5/8"@ 5,135' 5,875'-5,975' Cement Plug Sec.35,T15N,R9W,SM 5,475'-5,575' Cement Plug Location: 2,086' FWL,3,168'FSL 5,053'-5,135'Cement Plug Elevation: 123' KB 3,792'-3,849' Cement Plug TD: 8,025'MD 3,317'-3,374' Cement Plug 2,745'-2,805'Cement Plug Surface-50' Cement Plug *Well Plugged and Abandoned 19 I `k a 3 e • • Unocal Oil 13-3/8"@ 120' Beluga 3,648' Pretty Creek Unit 4 9-5/8"@ 2,386' Tyonek 7,070' API: 50-283-20100-00,Permit No. 201193 7"@ 6,942' Sec.33,T14N,R9W,SM Location: 3,681' FSL,2,117'FEL Elevation: 100' KB TD: 9,580'MD/7,566'TVD Shallow Hazard:Experienced gravel restricting circulation at—2,398'. Halbouty Alaska Oil 20"@ 339' 8,420'-8,675'Cement Plug Theodore River#1 (PCU 2) 13-3/8"@ 2,032' 3,215'-3,450' Cement Plug API: 50-283-20022-00,Permit No. 169015 9-5/8"@ 8,550' Surface—26' Cement Plug Sec.33,T14N,R9W,SM 8,420'Retainer Location: 1,590' FSL,2,140'FWL 7,000'Permanent BP Elevation: 81.9' GR 4,750'Permanent BP TD: 12,025' Shallow Hazard:Did not bring cement to surface,suspected wash out.Had to do top job. 201Page i 110 Seismic Information: Confidential 290.500 36 31 32 12 7 g 21.703 Cook Inlet Energy CONFIDENTIAL Project Location:Olson Scale.1:15000 ismstmml 0 1500 3000 4500ft Olson Well Location&Seismic 20 Base Map 21 1Page • • _..........._ _______ _.,.... .. ... .... 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'.•k‘,., \ ,.,11,...i 4 ' Yr,,tit el.,..,A.t,',,tit:(1,4,%..4'7.-,,,,'N...-",;."1°, 0.600 . .7.'."4a,,,,,.kn4-'rt',.t'., _''•!,614V.',‘8,,47ap,N„4,'''I-',ei••4,...,•1•*t•it 7,‘.-,.,:, , 1','•.;:..,,..”... .„,,',''. '••'.''‘‘.'.. '''i.',' ,1.•.'4‘P'P:.”",.1,'')' 'i'11'4'''• ''''. i 4.'.,,1.4•,0.....,.'‘i...•n:N' •,..."n .l,.,,' ' '.600 44et4 1AI 0700 R ,,\ XCAI '- 1.700 1.06. . ...'•'t" , °I'..a6 j;i14,11,14% 1044;al, di."74L, at..st.'„ • ..,l'i; , ''i ' 1'I.' ' 1.' I " ' '"' ''. , Ita,0 , 080' .., . * ,,.. • -* ' C. '-. ,`.....'-.‘'„ ‘,. ,, , ,t,' -4--4-.. j . 44'1.0,,*I. ''•,.1,.4.'.u V-.'•.''P7"1'"ri-t,,:1#'ad1.IZ 1'6-n,4''t,'1''0*'.''1ir1,00. -,;:,'.... ...". "J,,,?a._4,,ifs,il.4,• _i.1.44,.. , .,. -.0 , ' •. 800 090' 090o .o '% d11* 4, i ' 0900 1000 1 - „ ' • 1A00 / Cook Inlet Energy CONFIDENTIAL Project Location: Olson c;=•-----.." Line UD-2,Migration 23 1 '2- 'a g c--, 1 I 410 Pretty Creek #1 Sec 2 T14N RlOW Cook Inlet 0 ii 1 1 i i • . , 2 • . . 1000 —. ii 1 A . . . , . . . I . I 1 i i i i i j . 1 . : A I • 2000 - . •- ' ... ... ,.. .,__:........ -41_..i........:___. .:... .. . : .._i_ _ . .. _ . : ! • . , , , , . - - ••-- -•!-- ----4.- -1.-- -:• 3000 , r i--.--_._ • a) . •• ......• ..0 4.. a. . I 0) I. 1 CI 4000 , , : • Al '0,41 1 . 1 : • 00.. . . 5000 -- . • 1 L I L .i -:.. ...I.'.---.;.. :. ... I ' 1 1 I itI i 1 1 1 1 1 I 6000-;-• , • • 1 1 i . 1 I 1 : Il I?-ppg ---- -.: -— -. :-— -.; ---: --- .• --; Nothial -1 , • !' • ", -T.- 7000 : — . 10.00 100.00 1000.00 Sonic Log Travel Time (pa/ft) 24 Wage i • Casing Program Casing Program TVD(ft) Connection API rating Hole Casing sizes(in) (Ib/ft) Grade size(in) Burst Collapse tension Top Bottom Type OD(in) (psi) (psi) (kips) 10 3/4" 0 200 45.5 L80 BTC 11.46" driven 5210 2470 1040 7 5/8" 0 2,000 29.7 L80 LTC 8.01" 9 7/8" 6890 4790 683 5 1/2" 1700 7,500 17 L80 LTC 5.86 6 3/4" 7740 6390 397 Pressures Pore Pressure Frac Gradient at TVD at Depth Mud Weight at TD Shoe Casing Depth (EMW ppg) ppg ppg 7 5/8" 2,000 8.6 9.5 - 15.7 5 1/2" L 7,500 9.6 10.1 - 16.1 Maximum Pressures Setting MASP(Max Anticipated Surface Casing Size Depth MAWP(Max Allowable Working Pressure(psi)) Pressure(psi)) (tvd) 7 5/8" 2000 5512 3,189* 5 1/2" L 7500 6192 2994 MAWP=80%of *same as 5 1/2"due to Burst liner MASP=(Max Pore Pressure(ppg)x ND x.052)-(.1psi x ND) Well Control and Casing Design Calculations Casing Size: 7 5/8" Setting Depth: 2000 MD 2000 TVD 1.Collapse R Pore Pressure at setting depth-evacuated (EMW x.052 x depth(tvd)) 894.4 psi Safety factor 5.4 25 I . e S i 2. Burst @ surface a. Frac Press@ shoe (Equiv Mud Weight+0.5 ppg)X.052 X Depth(tvd)-(.1 psi/ft x Depth(tvd)) b. 1484.8 psi Surface pressure Max Pore Pressure-Gas Gradient x next Casing Depth 2994 psi (lesser of a or b) 1484.8 psi Safety factor 4.6 no buoyancy, hung in air 3.Tensile Loads = (Depth(tvd)x Weight/Ft) a.Tension Force 59400 lb Safety factor 11.5 Maximum Allowable Surface Casing Pressure MASCP= (0.8 x Casing Burst)-(Mud wt- Backup Fluid Wt.)x.052 x ND MASCP= 5390 NOTE: MASCP is contrained by the 3000#BOP ✓ Casing Size: 5 1/2" L Setting Depth: 8000 MD 8000 ND 1.Collapse @ Pore Pressure at setting depth-evacuated (EMW x.052 x depth(tvd)) 3744 psi Safety factor 1.7 2. Burst @ surface a. Frac Press@ shoe (Equiv Mud Weight+0.5 ppg)X.052 X Depth(tvd)-(.1 psi/ft x Depth (tvd)) b. 5724 psi Surface pressure Max Pore Pressure-Gas Gradient x next Casing Depth 2994 psi (lesser of a or b) 2994 psi Safety factor 2.6 no buoyancy, hung in air 3.Tensile Loads = (Depth(tvd)x Weight/Ft) a.Tension Force 98600 lb Safety factor 4.0 Maximum Allowable Surface Casing Pressure MASCP= (0.8 x Casing Burst)- (Mud wt- Backup Fluid Wt.)x .052 x ND MASCP= 5502 NOTE: MASCP is contrained by the 3000#BOP 26 I d_, v a • Logging Plan Open-hole Quad Combo Logging services(Gamma Ray,Neutron,Density, Sonic and Resistivity). Estimated open-hole logging interval from TD of 7500' up to surface casing depth of 2000', and continue logging Gamma Ray and Neutron services to surface. ✓ Mud Logging Plan Mud loggers will catch 30'ditch samples and maintain a wet and dry cut. Samples to be sent to state as required by regulations. 27Iva gr • Drilling Fluid Program Olson #1 Drilling Fluids Program Surface Hole 200'-2000' Mud Type: AQUAGEL Spud Mud Mud Properties MD Density Viscosity PV YP 10 second Gel(Ib/100sf) pH API Filtrate (cc) 10- 40- 200'-2000' 9.0-9.5 80-150 30 25 10-18 unrestricted Intermediate Hole 2000'-7500' Mud Type: 6% KCI/EZ MUD Mud Properties MD Density Viscosity PV YP 10 second Gel (lb/100sf) pH API Filtrate (cc) 9.5- 13- 8.5- 2000'-7500' 10.1 40-53 6-30 20 8.5-9.5 9.5 <5.0 28I ? a gL • • Solids Control and Equipment Item Equipment Specifications Shakers 5x Shale Shaker Desander Triflow 8-4 Mud Cleaner and Desander Desilter n/a Mud Cleaner Triflow 8-4 Mud Cleaner and Desander Centrifuge DE-1000 Centrifuge with pump 29IPape • • Drilling Waste Storage Drilling waste will be stored in open top steel tanks located on the old Pretty Creek Pad. The tanks would be covered and placed on a lined area on the pad. Drilling wastes will be either granular solids (cuttings), or liquids (drilling mud or water). Cuttings will be stored in a cuttings pit with a 3800 bbl capacity and transported to Cook Inlet's facility for disposal or reinjection as appropriate at a later date. Liquids will be stored in up to two open-top steel tanks of no more than 500 bbl capacity each. The tank(s)will be located in a containment area lined with an impermeable liner. The containment area will be sized to accommodate a minimum of 110% the volume of the largest tank. 30 I 7r:; • S Cementing Program Operator Name: COOK INLET ENERGY LLC V'.I Well Name: Olsen#1 BAKER Job Description: 7-5/8"Surface Casing HUGHES Date: October 15,2012 Proposal No: 1001155875C JOB AT A GLANCE Depth(TVD) 2,000 ft Depth(MD) 2,000 ft Hole Size 9.875 in Casing Size/Weight 7 5/8 in, 29.7 lbs/ft Pump Via 7 5/8"O.D. (6.875".I.D) 29.7 Total Mix Water Required 4,227 gals Weighted Spacer SealBond w/3%KCL 24 bbls Density 10.0 ppg Slurry Type I-Gas tight 455 sacks Density 13.5 ppg Yield 1.84 cf/sack Displacement Drilling Mud 88 bbls Density 9.3 ppg Report Pont.on October 15,2012 3-.55 1, Have more questions? You can find us at: http://www.bakerhug hes.com/products-a nd-services/press u re-pumpin g 31 � , f 1111 • Operator Name: COOK INLET ENERGY LLC FARM Well Name: Olsen#1 BAKER Job Description: 7-5/8"Surface Casing HUGHES Date: October 15,2012 Proposal No:1001155875C WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED TRUE VERTICAL 9.950 CASING I 200 200 9.875 HOLE 2,000 I 2,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 7.625 I 6.875 I 29.7 I 2,000 I 2,000 Float/Landing Collar set @ 1,920 ft Mud Density 9.30 ppg Mud Type Water Based Est.Static Temp. 83°F Est.Circ.Temp. 74°F VOLUME CALCULATIONS 200 ft x 0.2229 cf/ft with 0% excess = 44.6 cf 1,800 ft x 0.2148 cf/ft with 100% excess = 773.1 cf 80 ft x 0.2578 cf/ft with 0% excess = 20.6 cf(inside pipe) TOTAL SLURRY VOLUME = 838.3 cf = 149 bbls Report Pnnte0 on October 15.2012 3:56 PM Have more questions? You can find us at: http:llwww.bakerhughes.comlproducts-and-services/press ure-pumping 32 • • Operator Name: COOK INLET ENERGY LLC 1'.. Well Name: Olsen#1 BAKER Job Description: 7-5/8"Surface Casing HUGHES Date: October 15,2012 Proposal No: 1001155875C FLUID SPECIFICATIONS Weighted Spacer 24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 838 / 1.84 =455 sacks Type I Cement+0.05 lbs/sack Static Free+1 gals/100 sack FP-6L+0.5%bwoc Sodium Metasilicate+2.5%bwoc BA-56+10% bwoc BA-90+0.5%bwoc ASA-301 +2%bwoc Calcium Chloride+82.4%Fresh Water Displacement 88.2 bbls Drilling Mud @ 9.3 ppg CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.84 Amount of Mix Water (gps) 9.29 Amount of Mix Fluid (gps) 9.30 Additives may change pending test results and actual well temperatures. Cement slurry is gas tight and estimated @>2200 psi in 48 hrs,-2500 psi ultimate. Report Pri,ted orr October 15.2012 355 PM Have more questions? You can find us at: http://www.bakerhughes.com/products-a nd-services/pressure-pumping 33I ` • • Operator Name: COOK INLET ENERGY LLC BAKER Well Name: Olsen#1 Job Description: 5-1/2"Prod Casing HUGHES Date: October 16,2012 Proposal No: 1001155875D JOB AT A GLANCE Depth(TVD) 7,500 ft Depth(MD) 7,500 ft Hole Size 6.75 in Casing Size/Weight 5 1/2 in, 17 lbs/ft Pump Via 5 1/2"O.D. (4.892".I.D) 17 Total Mix Water Required 3,542 gals Weighted Spacer SealBond w/3%KCL 40 bbls Density 11.0 ppg Slurry Class G-Gas Tight 381 sacks !/' Density 13.5 ppg Yield 1.84 cf/sack v Displacement Drilling Mud 172 bbls Density 10.2 ppg Report Printed on:adobe,1470127'.2 PM GrA109 Have more questions? You can find us at: http J/www.bakerh ughes.com/products-and-se rvlces/pressu re-pu mpIng 34IPage 410 • Operator Name: COOK INLET ENERGY LLC .�.. Well Name: Olsen#1 BAKER Job Description: 5-1/2°Prod Casing HUGHES Date: October 16,2012 Proposal No:1001155875D WELL DATA ANNULAR GEOMETRY ANNULAR I.D. l DEPTH(tt) (in) I MEASURED I TRUE VERTICAL 6.875 CASING I 2,000 I 2,000 6.750 HOLE I 7,500 I 7,500 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 5.500 I 4.892 I 17 I 7,500 I 7,500 Float/Landing Collar set @ 7,420 ft Mud Density 10.20 ppg Mud Type Water Based Est.Static Temp. 118°F Est.Circ.Temp. 107°F VOLUME CALCULATIONS 500 ft x 0.0928 cf/ft with 0% excess = 46.4 cf 5,500 ft x 0.0835 cf/ft with 40% excess = 645.4 cf 80 ft x 0.1305 cf/ft with 0% excess = 10.4 cf(inside pipe) TOTAL SLURRY VOLUME = 702.2 cf 125 bbls f Report Printed on October 111,2012713 M 64115 Have more questions? You can find us at: http://www.b a ke rh u g h es.c o m/products-and-se rvi ces/p res s u re-p u m p i n g 35 Page • • Operator Name: COOK INLET ENERGY LLC v . R Well Name: Olsen#1 Job Description: 5-1/2"Prod Casing HUMUS Date: October 16,2012 Proposal No: 1001155875D FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls SealBond w/3%KCL+9.4 lbs/bbl Potassium Chloride+135.7 lbs/bbl Barite-Sacked @ 11 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 702 / 1.84 =381 sacks Class G Cement+10%bwoc BA-90+ 0.005 lbs/sack Static Free+2%bwoc Calcium Chloride+2.5%bwoc BA-56+0.5%bwoc ASA- 301 +1 gals/100 sack FP-6L+0.5%bwoc Sodium Metasilicate+82.5%Fresh Water Displacement 172.5 bbls Drilling Mud @ 10.2 ppg CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 13.50 Slurry Yield (cf/sack) 1.84 Amount of Mix Water (gps) 9.30 Amount of Mix Fluid (gps) 9.31 Additives may change pending test results and actual well temperatures. %part PMee an. oam.16,2012 753 PN Have more questions? You can find us at: httpJ/www.bakerhughes.com/producis-and-services/pressure-pumping 36 • • Bit Proposal Bit Summary Interval MD Size (in) Type IADC (ft) Surface: 0-2000' 9 7/8 Toughcutter 117M Production: 2000'-7500' 6 3/4 PDC M433 37IPage 4110 Regulatory Waiver and Special Procedures AOGCC Regulation 20 AAC 25.035 Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements: (1) the diverter system must consist of a remotely operated annular pack-off device, a full- opening vent line valve, and a diverter vent line with a diameter (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions,rig layout, or surface facility constraints; and Cook Inlet Energy requests a waiver of the 16" diverter line requirement due to the smaller hole size (9 7/8") in the surface section of this well. AOGCC Regulation 20 AAC 25.265 Automatic shut-in equipment a well that is capable of unassisted flow of hydrocarbons to surface and that has an onshore surface location that is 660 feet or less of (A) a permanent dwelling intended for human occupancy,including a billeting camp or private residence; (B) an occupied commercial building, excluding a structure located within an existing oil or gas field; (C) a road accessible to the public; (D) an operating railway; (E) a government maintained airport runway; (F) a coast line measured at mean high water; (G) a public recreational facility; or (H) navigable waters as defined by the United States Army Corps of Engineers in 33 C.F.R. Part 329.4 with boundaries defined in 33 C.F.R. 329.11; The Olson#1 exploration well is located on a lou¢ typ load which is not considered as public access. Cook Inlet Energy does not intend to install a SSSV should the well be completed and requests confirmation from the AOGCC that it would also not consider the well road as a public access way. 38 P r.p e; • • Davies, Stephen F (DOA) From: Courtney Rust[courtney.rust@cookinlet.net] Sent: Monday, November 26, 2012 11:26 AM To: Davies, Stephen F (DOA) Subject: RE: Olson creek#1 (PTD 212-171) Attachments: MHT 9300062 Memorandum of Lease and Addendums.pdf Steve, I apologize I'm still tying up some of the other questions you had asked about the spacing exemption for RU2A. For Olson Creek: This lease, MHT 9300062, has been extended through December 31, 2013. The original lease only contained the southeast 1/4 of section 6, but the area was expanded by an addendum in December 2010. I have included an attachment. ff Thanks! Y" 7;02v From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, November 26, 2012 11:24 AM To: courtney Rust Subject: RE: Olson creek #1 (PTD 212-171) Courtney, On November 15th, I phoned you about Section 6 of T13N, R1OW,SM, and asked about landownership/ownership for NW1/4, NE1/4 and SW1/4 of Section 6: have these quarter sections been added to MHT 9300062? My work notes indicate that you would provide this information, but I haven't received a reply. I need this information before I can complete my review of the the permit to drill application for the Olson Creek No. 1 well. Thanks for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: courtney Rust [mailto:courtney.rust©cookinlet.net] Sent: Wednesday, November 21, 2012 11:48 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Re: Olson creek #1 (PTD 212-171) Guy, 1 1. Can you update the Schema ° show your proposed completion . I only 3�e one packer. Also the TOC will be the TOL at 1700' md. not 1500 ft. Done. 2. What will be your ram size for uppers . What drill pipe OD??? Grade?? Rams-3-5"VBR. Drill Pipe is 3.5" 11.6# Aluminum 3. If frac is proposed you will need a separate sundry. Understood 4. Can you elaborate any more on the completion section? More detail on the procedure here would be helpful. How will you flow test? At this time completion will depend on logs run at the end of this well. Flow testing will be done via Flare, and I will get you the information like I did for Otter. 5. Can you supply your calculations for BTC? Conrad took care of this just moments ago. If you have any further questions I will get you answers, Thank you. Courtney Rust Cook Inlet Energy Project Engineer Office-907-433-3809 cell-907-350-0091 From: "Schwartz, Guy L (DOA)" <guy.schwartz@alaska.gov> Date:Tuesday, November 20, 2012 9:41 AM To: courtney Rust<courtney.rust@cookinlet.net> Cc: "Davies,Stephen F (DOA)" <steve.davies@alaska.gov> Subject: RE: Olson creek#1 (PTD 212-171) Courtney, I found the Ram sizing.. 3-5" VBR. But still have some questions regarding Burst , Collapse and Tension calculations for the well. Can you supply your calculations for BTC? This appears to also be right at the limit for the rig pull back ratings at TD ( depending on your drillpipe weight for running the liner) Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From:Schwartz, Guy L (DOA) Sent: Monday, November 19, 2012 4:25 PM To: 'courtney.rustgcookinlet.net' Subject: Olson creek #1 (PTD 212-171) Courtney , I am reviewing the PTD for Olson Creek#1 1) Can you update the Schematic to show your proposed completion . I only see one packer. Also the TOC will be the TOL at 1700' md. not 1500 ft. 2) What will be your ram size for uppers . What drill pipe OD??? Grade?? 3) If frac is proposed you will need a separate sundry. 4) Can you elaborate any more on the completion section? More detail on the procedure here would be helpful. How will you flowtest? Guy Schwartz Senior Petroleum Engineer 2 • A 204-070607-0 A Recording Dist: 301 - Anchorage 10/17/2006 12:34 PM Pages: 1 of 5 A 11I 11 H11111111 Dili 11111 ORIGINAL LEASE RECORDED IN DISTRICT, ALASKA AFTER RECORDING PLEASE RETURN TO: FOREST OIL CORPORATION ATTN: LAND ADMINISTRATION 707 17TH STREET,SUITE 3600,DENVER, CO 80202 THIS COVER SHEET HAS BEEN ADDED TO THIS DOCUMENT TO PROVIDE SPACE FOR RECORDING DATA. THIS COVER SHEET APPEARS AS THE FIRST PAGE OF THE DOCUMENT IN THE OFFICAL PUBLIC RECORD. DO NOT DETACH • MEMORANDUM OF OIL AND GAS LEASE Record this document in the MHT 9300062 Anchorage Recording District This Memorandum of Lease is intended to give notice of a COMPETITIVE OIL AND GAS LEASE issued by and among the ALASKA MENTAL HEALTH TRUST AUTHORITY(Trust Authority), a public corporation within the Alaska Department of Revenue (AS 47.30.011 et seq.), acting by and through the State of Alaska, Department of Natural Resources, Trust Land Office (TLO) pursuant to AS 37.14.009, AS 38.05.801 and 11 AAC 99 (the Trust Authority and the TLO are collectively referred to as Lessor), and FOREST OIL CORPORATION, as Lessee. Said lease is effective January 1, 2006 and is serialized as MHT 9400062. Pursuant to the terms of said Lease,the Lessor grants to the Lessee, without warranty, the exclusive right to drill for, extract, remove, clean, process, and dispose of oil, gas, and associated substances and the nonexclusive right to conduct geological and geophysical exploration for oil, gas, and associated substances and to install pipelines and build structures to find, produce, save, store, treat, process, transport, take care of, and market all oil, gas, and associated substances and to house and board employees in its operations until lease expiration on January 1, 2011, unless sooner terminated, on the lands described in the attached Exhibit A. The Lease also provides for the Lessee to maintain the lease for so long thereafter as Lessee is producing oil, gas or associated hydrocarbons in paying quantities there from, and on such other terms and conditions as set forth in the Lease. This Memorandum of Lease is prepared for the purpose of recordation as authorized under AS 40.17.120 and in no way changes, modifies or otherwise affects any provision of the Lease, including the mitigation measures incorporated therein. Further information regarding the Lease may be obtained from the parties at the following addresses: Trust Land Office Forest Oil Corporation 718 L Street, Suite 202 310 K Street, Suite 700 Anchorage, AK 99501 Anchorage,Alaska 99501 Alaska Mental Health Trust Authority By its Agent: Trust LandLOffice it� a' By: t MartyK. ' therford� Executive Director,Trust Land Office Memorandum of Lease I 111111 1111111111 II Page 1 of 3 MHT 9300062 2 of 5 2006-070607-0 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) This is to certify that on this , day of Sapie.a , 200( , personally appeared 1,.;3z tb t3 oo , known to me to be the Avs Director of the Trust Land Office, and who acknowledged to me that he/she executed the f regoing instrument, on behalf of the Trust Land Office, as agent for the Alaska Mental Health Trust Authority, freely and voluntarily and for the purposes therein state 111111110f�// W E,47-,, nlesrop tc� O •C� P -fid y /f � NOTARY = Notary public in and for the State of Alaska PUBLIC My commission expires: Si 301 OS LESSEE: Forest Oil Corporation By: Printed Name/Title: STATE OF ALASKA ) ss THIRD JUDICIAL DISTRICT ) This is to certify that on this day of , 20 , before me personally appeared , of , known to me to be the person named and who acknowledged to me that he/she executed the foregoing instrument in the above stated capacity on behalf of the said corporation, freely and voluntarily and for the purposes therein stated. Notary public in and for Alaska My commission expires: AFTER RECORDING, RETURN DOCUMENTS TO: ORIGINAL TO: Forest Oil Corporation 310 K Street, Suite 310 Anchorage, Alaska 99501 Memorandum of Lease J 1111111 II IlIlIII If Hf I Page 2 of 3 MHT 9300062 3 of 5 2006-070607-0 CERTIFIED COPY TO: Trust Land Office 718 L Street, Suite 202 Anchorage, Alaska 99501 Memorandum of Lease I/!I//////ll/iI////I///f///////// MHT 4 of g Page 3 of 3 2006.070607-0 • Exhibit A MHT 9300062 TRACT 12: T. 13 N,R. 10 W., SEWARD MERIDIAN,ALASKA SECTION 4: UNSURVEYED,ALL, EXCLUDING THE BELUGA RIVER(625.00 ACRES); SECTION 5:UNSURVEYED,ALL (640.00 ACRES); SECTION 6: UNSURVEYED, SE1/4 (160.00 ACRES); " SECTION 7: UNSURVEYED,NE1/4, S1/2,EXCLUDING THE BELUGA RIVER (402.00 ACRES); SECTION 8: UNSURVEYED,ALL,EXCLUDING THE BELUGA RIVER(596.00 ACRES); SECTION 9: UNSURVEYED,ALL, EXCLUDING THE BELUGA RIVER(555.00 ACRES); SECTION 16: UNSURVEYED,ALL (640.00 ACRES); SECTION 17: UNSURVEYED,ALL (640.00 ACRES); SECTION 18: UNSURVEYED,ALL,EXCLUDING THE BELUGA RIVER(599.00 ACRES); THIS TRACT CONTAINS 4,857.00 ACRES,MORE OR LESS. iIII/II1II!III/IIIIIIIIIIiiiiiiiii S of 5 2006-070607-0 • A 20 . 9-000613-0 A Recording Dist: 301 - Anchorage �-' s 1/4/2011 12:26 PM Pages: 1 of 4 A I 1111111 tIll 111111111 RECORDING COVER SHEET Record this document in the Anchorage Recording District Index this document as follows: Title: Addendum No. 1 to Competitive Oil and Gas Lease MHT 9300062 Grantor: State of Alaska, Department of Natural Resources, Mental Health Trust Land Office Grantee: Cook Inlet Energy, LLC Original Lease Recorded: 2006-070607-0, Anchorage District Legal Description: As contained in Exhibit A After recording, please return to: Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 • • Addendum No. 1 to Competitive Oil and Gas Lease MHT 9300062 This Addendum is entered into by the State of Alaska,Department of Natural Resources, Mental Health Trust Land Office("TLO" or"Lessor") and Cook Inlet Energy, LLC (Lessee). The purpose of this Addendum is to modify the above referenced lease as follows: 1. Extension of Lease Term: This Lease is extended for two (2) years from its current expiration date of December 31, 2010. This lease will now expire at 11:59 P.M. on December 31, 2012 unless extended pursuant to the existing lease terms. The effective rental rate will be $3.00/acre/year. 2. Change in Legal Description: The legal description of the Leased Area is modified to add approximately 626 acres. The revised description of the Leased Area is described in Exhibit A to this Addendum. 3. Addition of new paragraph: Paragraph 12 is added to the Lease,to read as follows: 12. Requirement to Drill. In order to secure the lease extension provided for in Addendum No. 1 to this Lease, Lessee agrees to spud a well on this lease or lease MHT 9300063 by December 31, 2011. If a well is not spud by that date, one of these leases, to be chosen at the sole discretion of the Lessor, will be terminated. In addition, Lessee commits to the payment of a penalty to Lessor in the amount of$250,000 if a well is not spud on the other lease (not previously drilled) by December 31, 2012. 4. Effective Date of this Addendum: December 31, 2010. All other terms and conditions of Competitive Oil and Gas Lease MHT 9300062 remain in effect. This Addendum is attached and made a part of MHT 9300062. *************************************** MHT 9300062 Addendum No. 1 III IIIIIIIII1EI IIIIIIIIIIII IIII Page 1 of 3 2 of 4 2011-0(10613-0 S IN WITNESS WHEREOF,the parties hereto have executed this Addendum effective as of the date above written. LESSOR: LESSEE: ALASKA MENTAL HEALTH COOK INLET ENERGY, LLC TRUST AUTHORITY By its agent: T st Land Office By: 11/..d_ By: Greg' L. Jones Title) Executive Director STATE OF ALASKA ) )ss. Third Judicial District ) .tL This is to certify that on this day of December, 2010,personally appeared Gregory L, Jones, known to me to be the Executive Director of the Mental Health Trust Land Office, and who acknowledged to me that he executed the foregoing instrument, on behalf of the Mental Health Trust Land Office, as agent for the Alaska Mental Health Trust Authorityfi"kregly and voluntarily and f the purposes -rein stated. 72/7 cP "' o�o o�ublic for the State of AL.ka . NOTARY 1 My Commission expires: `'u r.,..2.„ PUBLIC /* o c0 STATE O{'Mat" 1``, ) ) ss. Third Judicial District ) This is t9c- ify that on this i� ay of December, 2010 before me appeared ) , n 6,__,;' known to me to be the e �C of t � _ ��; .c.2t1 'i _.,,JJ d who acknowledged to me tha #/she executed the foregoing instrument, (3' behalf of said corporation, pursuant to its by-laws or a resolution of its board of directors, and for the purposes till ein s 0 •) sink ���i�tliiltPtf/tlllJ� Notary-' .l c /s r h- tate of A as • s �f My Commission expires: (NOTA :y E MHT 93000625**%•,PUBLIC,` Addendum No. 1 sr 9j43'Vie,z°..`6�- �` 1111E1111E11111111111111E Page 2 of 3 /1f�f/��O llI ll eN1��4`� 2011-000613-0 • i Exhibit A MHT 9300062 TRACT 12 T. 13 N,R. 10 W., SEWARD MERIDIAN, ALASKA SECTION 4: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER(625.00 ACRES); SECTION 5: UNSURVEYED, ALL(640.00 ACRES); SECTION 6: UNSURVEYED, ALL(633.00 ACRES); V' SECTION 7: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER(555.00 ACRES); SECTION 8: UNSURVEYED,ALL, EXCLUDING THE BELUGA RIVER(596.00 ACRES); SECTION 9: UNSURVEYED,ALL, EXCLUDING THE BELUGA RIVER(555.00 ACRES); SECTION 16: UNSURVEYED,ALL(640.00 ACRES); SECTION 17: UNSURVEYED,ALL(640.00 ACRES); SECTION 18: UNSURVEYED,ALL,EXCLUDING THE BELUGA RIVER(599.00 ACRES); THIS TRACT CONTAINS 5,483.00 ACRES, MORE OR LESS. MHT 9300062 h� Addendum No. 1 IIIIIIj I II IIIIIIIIIIIII III Page 3 of 3 4 of 4 2011-000613-0 I • A 20: *000648-0 A Recording Dist: 301 - Anchorage 1/4/2012 2:38 PM Pages: 1 of 5 A 11111111111111111111111111111111111111111111111111111 RECORDING COVER SHEET Record this document in the Anchorage Recording District Index this document as follows: Title: Addendum No. 2 to Competitive Oil and Gas Lease MHT 9300062 Grantors: State of Alaska, Department of Natural Resources, Mental Health Trust Land Office Grantee: Cook Inlet Energy, LLC Original Lease Recorded: 2006-070607-0, Anchorage District Legal Description: T. 13 N, R. 10 W, SEWARD MERIDIAN,ALASKA SECTION 4: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER (625.00 ACRES) SECTION 5: UNSURVEYED, ALL(640.00 ACRES) SECTION 6: UNSURVEYED, ALL (633.00 ACRES) SECTION 7: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER (555.00 ACRES) SECTION 8: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER (596.00 ACRES) SECTION 9: UNSURVEYED, ALL, EXCLUDING THE BELUGA RIVER (555.00 ACRES) SECTION 16: UNSURVEYED, ALL(640.00 ACRES) 41) i SECTION 17: UNSURVEYED, ALL(640.00 ACRES) SECTION 18: UNSURVEYED, ALL, EXCLUDING THE BED OF THE BELUGA RIVER (599.00 ACRES) THIS TRACT CONTAINS 5,483.00 ACRES, MORE OR LESS. After recording, please return to: Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 1111111 11 11111111 11111 2 of 5 2012-000648-0 • A Addendum No. 2 to Oil and Gas Lease MHT 9300062 This Addendum is entered into by the State of Alaska, Department of Natural Resources, Mental Health Trust Land Office ("TLO"or"Lessor") and Cook Inlet Energy(Lessee). The purpose of this Addendum is to modify the above referenced lease as follows: 1. Extension of Lease Term: This Lease is extended for one(1)year from its current expiration date of December 31,2012. This lease will now expire at 11:59 P.M. on December 31, 2013 unless extended pursuant to the existing lease terms. The v` effective rental rate will be $3.00/acre/year. 2. Modification of paragraph: Paragraph 12 is changed to read as follows: 12. Requirement to Drill. In order to secure the lease extension provided for in Addendum No. 2 to this Lease, Lessee agrees to spud a well on this lease or lease MHT 9300063 by December 31, 2012.If a well is not spud by that date, one of these leases, to be chosen at the sole discretion of the Lessor,will be terminated. In addition,Lessee commits to the payment of a penalty to Lessor in the amount of$250,000 if a well is not spud on the other lease (not previously drilled)by December 31,2013. 3. Addition of new paragraph: Paragraph 13 is added to the Lease to read as follows: 13.Performance Deposit.In addition to any other bonding or performance deposit requirements of this Lease, in order to secure the payment of the penalty referred to in Paragraph 12 above,Lessee shall provide to Lessor assurance in the form of a cash deposit, certified check, cashier's check,money order, certificate of deposit, or irrevocable letter of credit in the amount of$250,000 before this Addendum No. 2 will be endorsed by Lessor, said assurance to be refunded to Lessee within 30 days of the spudding of a well that meets the Requirement to Drill provision of Paragraph 12. 4. Effective Date of this Addendum: December 31,2011. All other terms and conditions of Upland Mining Lease MHT 9300062 remain in effect. MHT 9300062 Addendum No.2 ` Page 1 of t III 11111311111111111 3 of 5 2012-000648-0 1 9 40 This Addendum is attached and made a part of MHT 9300062. IN WITNESS WHEREOF, the parties hereto have executed this Addendum effective as of the date above written. LESSOR: LESSEE: //. ALASKA MENTAL HEALTH CO i K INLET ENERGY TRUST AUTHORITY ---- / By its agenttom' ' Land Office, - "- -- J /i t By: / VZ By: k iA-...r -• . W',Icer _I- -Grego L. Jones Title:--?res Si -.1— Executive Director STATE OF ALASKA ) )ss. Third Judicial District ) This is to certify that on this Z7' day of December, 2011, personally appeared Gregory L, Jones, known to me to be the Executive Director of the Mental Health Trust Land Office, and who acknowledged to me that he executed the foregoing instrument, on behalf4� 1t`dlil#11j tal Health Trust Land Office, as agent for the Alaska Mental Health Tr i o : y and voluntarily and for the purposes therein stated. '.` Notary Public for the State of Alaska , - ` IC My Commission expires: Gtw `-- ��(..J STAT/illiASKA ) )ss. Third Judicial District )nn This is to certify that on this 1-1. day of December, 2011 before me appeared V v i- W I C 6X1 known to me to be the Re Act evt'+.- of / C cor- .....i,.t ` cVl&' , and who acknowledged to me that he/she executed the oin instrument, on be alf of s .{1---corporation, pursuant to its by-laws or a foregoing rP resolution of its board of directors, and f the pu e. therein stated. / c r \��i1111{fllNl�/j/ Not ry blic for the State of,, EMM. � / M Commission expires: :'NO7 pmv MHT 9300062 "4( -P � • Addendum No.2 '-' e. l-' -9 C 4,/c...: ..` Page 2 of 2 1111111111111111111111111 f�F'''•: •.... .:!i- ,��j„.,„ /�Itl!!(t PS„41'. 4 of 5 2012-000648-0 Page 1 of/i • Schwartz, Guy L (DOA) From: courtney Rust[courtney.rust@cookinlet.net] Sent: Wednesday, November 21, 2012 11:48 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA) Subject: Re: Olson creek#1 (PTD 212-171) Attachments: Olson Wellbore 11-17-12.ppt Guy, 1. Can you update the Schematic to show your proposed completion . I only see one packer. Also the TOC will be the TOL at 1700' md. not 1500 ft. "sone. 2. What will be your ram size for uppers . What drill pipe OD??? Grade?? Rams-3-5"VBR. Drill Pipe is 3.5" 11.6#Aluminum 3. If frac is proposed you will need a separate sundry. Understood 4. Can you elaborate any more on the completion section? More detail on the procedure here would be helpful. How will you flow test?At this time completion will depend on logs run at the end of this well. Flow testing will be done via Flare, and I will get you the information like I did for Otter. 5. Can you supply your calculations for BTC? Conrad took care of this just moments ago. If you have any further questions I will get you answers, Thank you. Courtney Rust Cook Inlet Energy Project Engineer Office-907-433-3809 cell-907-350-0091 From: "Schwartz, Guy L(DOA)" <guy.schwartz@alaska.gov> Date:Tuesday, November 20, 2012 9:41 AM To: courtney Rust< r+ney.rust@cookinlet.net> Cc: "Davies,Stephen F (DOA)" <steve.davies@alaska.gov> Subject: RE: Olson creek#1 (PTD 212-171) Courtney, I found the Ram sizing.. 3-5"VBR. But still have some questions regarding Burst, Collapse and Tension calculations for the well. Can you supply your calculations for BTC? This appears to also be right at the limit for the rig pull back ratings at TD ( depending on your drillpipe weight for running the liner) Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From:Schwartz, Guy L (DOA) Sent: Monday, November 19, 2012 4:25 PM To: 'rourtney.rust@cookinlet.net' Subject: Olson creek #1 (PTD 212-171) Courtney , 11/21/2012 • 9 Cook Inlet EnergyOlson #1 Proposed Wellbore Diagram Estimated Spud Date 12/15 '4 r,�y ,�...,N iy$ VV 4 �, 10 3/4", 45.5#, L80 Ly` @200' MD/TVD • K:• y� ..ate Chemical injection mandrel K' ,IIIIIM `.��.�• with '/4' control lines 2-7/8", 6.5#, L-80, EUE Tubing (Coupling OD = 3.668") ' ..?-..• . 9 7/8" Hole may ` 4 "V •Yv 7 5/8" 29.7#, L 80, LTC 4, ,••• N. 4., ,.•„. @ 1700' TOL ?�0 @ 2,000' MD/TVD :441 10 •h 4Y v 6 3/4” Hole x 1 5 1/2", 17#, L-80, LTC @ 7500' MD/TVD S i Casing Program TVD(ft) Connection API rating Wt# Grade Hole size Casing sizes(in) (lb/ft) (in) Burst Collapse tension Top Bottom Type OD(in) (psi) (psi) (kips) 10 3/4" 0 200 45.5 L80 7 5/8" 0 2,000 29.7 L80 9 7/8" 6890 4790 683 5 1/2" L 1700 7,500 17 L80 6 3/4" 7740 6390 397 Pressures Pore Pressure at Mud Weight at Frac Gradient at Depth TD Shoe Casing ND Depth (EMW ppg) ppg ppg 7 5/8" 2,000 8.6 9.5 15.7 5 1/2" L 7,500 9.6 10.1 16.1 Maximum Pressures Setting MAWP(Max Allowable Working Pressure MASP(Max Anticipated Surface Casing Size Depth(tvd) (psi)) Pressure(psi)) 7 5/8" 2000 3000 psi BOP(5356 psi casing) 1485/2994* 5 1/2" L 7500 3000 psi BOP(5997 psi casing) 2994 *1485 psi while drilling 6 3/4"hole/2994 psi once 5 1/2"liner is set and cemented MAWP=80%of Burst MASP=(Max Pore Pressure(ppg)x TVD x.052)-(.1psi x TVD) Constrained by shoe FIT or BOPs(3M) Well Control and Casing Design Calculations Casing Size: 7 5/8" Setting Depth: 2000 MD 2000 ND 1.Collapse Pore Pressure at setting depth-evacuated (EMW x.052 x depth (tvd)) 8.6*0.052*2000 894.4 psi Safety factor 5.4 • • 2. Burst @ surface a. Frac Press@ shoe (Equiv Mud Weight+0.5 ppg)X.052 X Depth(tvd)-(.1 psi/ft x Depth(tvd)) ((15.7+.5)*.052*2000)-(.1*2000) 1484.8 b. psi Surface pressure Max Pore Pressure-Gas Gradient @ next Casing Depth (9.6*.052*7500)-(.1*7500) 2994 psi 2994 (lesser of a or b) 1484.8 psi Safety factor 4.6 3.Tensile Loads no buoyancy, hung in air= (Depth(tvd)x Weight/Ft) a.Tension Force 59400 lb Safety factor 115 Maximum Allowable Surface Casing Pressure MASCP= (0.8 x Casing Burst)-(Mud wt- Backup Fluid Wt.) x.052 x TVD MASCP= (0.8 x 6890)-((10.1-8.6)x.052x2000') 5356 NOTE: MASCP is contrained by the 3000#BOP Casing Size: 5 1/2" L Setting Depth: 8000 MD 8000 TVD 1.Collapse P? Pore Pressure at setting depth-evacuated (EMW x.052 x depth(tvd)) 3744 psi Safety factor 1.7 2. Burst @ surface a. Frac Press@ shoe (Equiv Mud Weight+0.5 ppg)X.052 X Depth(tvd)-(.1 psi/ft x Depth(tvd)) b. 5724 psi Surface pressure Max Pore Pressure-Gas Gradient x next Casing Depth (9.6*.052*7500)-(.1*7500) 2994 psi 2994 (lesser of a or b) 2994 psi Safety factor 2.6 3.Tensile Loads no buoyancy, hung in air= (Depth(tvd)x Weight/Ft) a.Tension Force 98600 lb Safety factor 4.0 Maximum Allowable Surface Casing Pressure MASCP= (0.8 x Casing Burst)-(Mud wt- Backup Fluid Wt.)x.052 x TVD MASCP= (.8*7740)-((10.1-9.6)*.052*7500) MASCP= 5997 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. ♦ i TRANSMITTAL LETTER CHECKLIST WELL NAME ��z C?-e_d___ PTD# "� / --- / _) Development Service Exploratory Stratigraphic Test A P I'Y Non-Conventional Well j � "Ierr?-- FIELD: �/661—y-- POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY 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 NW 0 • El E1 , 76 0, o a) 0 N N - y' a) ° E . °' CO Q COQ � OO '.. ° co E a X V) a p p. 0 • U a), E O o � a a v' co 0) co co 4 2 c. °� o C? 06 • co a a .2 .c co 46 ✓ c — to -1:, i O ° E (n� C� � c� )-� °O' CD 3 N,U 0 N C, C tc6. :0 -p O' •,c ' . o. • a) Bo. a CO a f0. O. E: o �� 9� �, >� `, p� CO ° o o' b. a) o) 0 o '3 0) _ °� 0) U)� oo m aa) 3. ( > c E o o -0 ° • g c. E CO. CO m (a = w, U) (a. /, c .0 o ° -Cl.))ig �� ,.. y, m� ' 5t ° 0 CO C 0 0� 3 O C 0. N. C' (5, V' ° -2 .4 f0; aT O, 2, co � 2 ..n O. 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Technical Report Title Date Client: Cook Inlet Energy, LLC Field: West Side-Cook Inlet Rig: Miller Rig 34 Date: October 05, 2013 Surface Data Logging End of Well Report Olson Creek #1 Olson Creek #1-PB1 TABLE OF CONTENTS 1. General Information 2. Daily Summary 3. Days vs. Depth 4. After Action Review 5. Mud Record 6. Bit Record 7. Morning Reports 8. Survey Report Digital Data to include: Final Logs Files Final End of Well Report Final LAS Exports Halliburton Log Viewer EMF Log Viewer GENERAL WELL INFORMATION Company: Cook Inlet Energy Rig: Miller Rig 34 Well: Olson Creek #1 & Olson Creek #1-PB1 Field: West Side-Cook Inlet Borough: Kenai Peninsula Borough State: Alaska Country: United States API Number: 50-283-20171-00-00 (Olson Creek #1) 50-283-20171-70-00 (Olson Creek #1-PB1) Sperry Job Number: AK-AM-0900491711 Job Start Date: 23 June 2013 Spud Date: 25 June 2013 Total Depth: 5715’ MD, 5683’TVD (Olson Creek #1) 5643’ MD, 5549’ TVD (Olson Creek #1-PB1) SDL Release Date: 05 Oct 2013 North Reference: Grid Declination: 17.401° Dip Angle: 74.077° Total Field Strength: 55675 nT Date Of Magnetic Data: 11 July 2013 Wellhead Coordinates N: North 61° 14’ 44.211” Wellhead Coordinates W: West 151° 8’ 10.726“ Drill Floor Elevation 306.9’ Ground Elevation: 291.6’ Permanent Datum: Ground Level SDL Engineers: Todd A. Wilson, Martin Nnaji, Andrew Bongard, Craig Amos, Leigh Ann Rasher, David Mckechine, Pascal Poupart SDL Sample Catchers: Will Grimes, Adam Pence, Michael Johnston, Dakota Novak, James Larkey Company Geologist: Art Saltmarsh, Greg Kirkland Company Representatives: Mike Murray, Don Jones SSDS Unit Number: 115 DAILY SUMMARY 06/22/2013 SDL arrives on location. Wait on the unit to warm up before rigging up Began rigging up gas trap, and ran gas line to the unit. Rig up network connection and WITS to Totco. 06/23/2013 Continue rigging up unit and troubleshooting equipment. 06/25/2013 Spudded well and fixed mud pump problems, tagged bottom and commenced drilling. Gas: Max gas was 0 units and the Geology: No geological sample collected. 06/26/2013 Drilling halted as a result of faulty mud pumps, awaiting parts for repair. Gas: Max gas was 0 units and the average gas was 0 units Geology: No geological sample collected 06/27/2013 Drilling still on hold due to faulty mud pumps, awaiting repairs Gas: Max gas was 0 units and the average gas was 0 units Geology: No geological sample collected 06/28/2013 Drill from 231' MD to 413' MD. Gas: Max gas was 5 units and the average gas was 2 units Geology: Cuttings have been mostly coal and sandstone. Color is black, brown, grey and white. Predominantly hard, brittle, sub rounded, angular, unconsolidated and fine to coarse grained. 06/29/2013 Run survey which indicates a 15 degree angle. Pulling observed tight while pulling out of hole, circulated clean and noticed a considerable quantity of lignite shards due to sloughing. Survey tool discovered upside down when survey was taken. Run into hole to pump sweep and survey again. Gas: Max gas was 0 units and the average gas was 0 units Geology: Cuttings are predominantly sandstone with moderate amount of coal and trace of glauconite. Samples are sub angular to angular, poorly sorted and very fine to fine grained. 06/30/2013 Another survey was taken at 506' MD which read 4 degrees. Drill to 898' MD. Gas: Max gas was 16 units and the average gas was 9 units Geology: Cuttings have been sandstone with dominant quantity of coal noticed at 700' MD. Clay stone, siltstone and glauconite trace observed. Samples are sub angular to angular, sub rounded, poorly sorted, very fine to fine grained and non-calcareous. 07/01/2013 Drill from 898' MD to 1192' MD. Ran a survey at 1136' MD and got a reading of 8.5 degrees angle. Gas: Max gas was 36 units and the average gas was 11 units Geology: Cuttings are sandstone and claystone with abundance of coal observed at 900' MD. Samples are clear, white, light grey, green occasionally tan, unconsolidated and very fine to fine grained. They are also sub angular, sub rounded, poorly sorted, none calcareous with trace of glauconite. 07/02/2013 Drilled from 1192' MD to 1555' MD and took survey at 1464' MD which read a 14 degree angle. Gas: Max gas was 92 units and the average gas was 30 units. Geology: Cuttings have been predominantly sandstone and claystone. Abundance of coal with trace brown lamina observed at about 1200' MD and 1440' MD. Steady increase of gas noted, more often at the coal beddings. 07/03/2013 Drill from 1555' MD to 1852' MD without issues. Gas: Max gas was 92 units and the average gas was 43 units Geology: Cuttings have been predominantly sandstone, claystone and coal. Abundance of coal observed at 1555' MD, 1574' MD and 1800' MD which is also associated with gas peaks. 07/04/2013 Drill from 1852' MD to 2049' MD .TD 9.875" hole at 2049' MD. Pulling out of hole to run casing and cement. Gas: Max gas was 89 units and the average gas was 30 units Geology: Cuttings have been coal, claystone and sandstone. More sandstone observed towards TD and gas peaks at coal beddings. 07/05/2013 Pulled-out-of-hole. Ran a weighted sweep at about 900', and saw good returns over shakers. Continue to Pull-out-of-hole to surface. Hook up casing equipment to run casing. The 2 sample catchers and the night mudlogger were sent to town, and will be called out when deemed necessary by the company man. Gas: Max gas was 20 units and the average gas was 10 units 07/06/2013 Finish tripping-in-hole with casing. The shoe was set at 1998' MD. The hole would not allow casing to be set any deeper. Cemented casing, and displaced with 9.5 ppg mud. Rig down casing equipment and diverter. Proceed to nipple up BOP. Gas: Max gas was 39 units and the average gas was 7 units 07/07/2013 Continue to nipple up BOP in preparation for the next drilling section. Gas: No significant gas data. 07/08/2013 Continue to rig up and test BOP. Planning to make an open-ended trip in the hole to circulate hole volume and to determine if mud is adequate for drilling cement. Gas: No significant gas data. 07/09/2013 Trip-in-hole with open-ended drill pipe. Tag cement at 1890' MD. Pull off bottom to 1850' MD, and circulate the hole clean of the mud that has been sitting in the hole for a few days. Circulate and condition mud for drilling out the cement. Begin to pull-out-of -hole. Gas: No significant gas data. 07/10/2013 Finish pulling-out-of-hole with open ended run. Work on mud pumps and test BOP. Gas: No significant gas data. 07/11/2013 Finished testing BOP. Pick-up BHA to run-in-hole to drill out cement. Circulate old mud from down hole to test MWD tools. Gas: No significant gas data. 07/12/2013 Continue to TIH with drill out assembly, tag cement and drill to 2069' MD. Perfrom FIT. Totco Data exchange down from 2062' MD to 2069' MD, no data recorded by SDL engineers. Attempt to Repair Totco Connection, begin repairs on rig brake system at 23.00. Gas: Max gas was 40 units and the average gas was 18 units 07/13/2013 Complete repair of rig break system, continue to drill from 2069' to 2200' MD at midnight, 112 U Max gas seen at 2121' MD associated with a 100% Coal sample. Minimal other coal samples observed throughout. 1 Connection gas of 40 Units observed but no visible increase with depth. There may be a thicker coal bed at 2234' TVD based off the Correlation logs but this is only an estimate. Gas: Max gas was 112 units and the average gas was 28 units Geology: 60% claystone, 20% sandstone, 20% coal 07/14/2013 Continue to drill from 2200' to 2561' MD, Gas peaks of 30 to 65 units noted at irregular intervals with one large gas peak of 114 Units noted at 2541'. All these intervals are associated with high percentages of coal in cuttings samples. Background gas has risen from 10 to 16 units, with very little visible connection gas being seen. Coal beds should continue to be thin with minimal gas, a thicker bed is expected around 2800' TVD estimated. Gas: Max gas was 112 units and the average gas was 28 units Geology: 50% claystone, 20% sandstone, 30% coal 07/15/2013 Continue to drill from 2561' to 2825' MD, Gas peaks of 30 to 65 units noted at irregular intervals with one large gas peak of 87 Units noted at 2814'. All these intervals are associated with high percentages of coal in cuttings samples. Background gas has stayed constant at 15 - 20 units, still low connection gas being seen. Coal beds should continue to be thin with minimal gas, coal beds are expected at 2916' MD, based on current inclinations. Gas: Max gas was 87 units and the average gas was 23 units Geology: 60% claystone, 20% sandstone, 20% coal 07/16/2013 Continue to drill from 2825' to 2914' MD, Short trip to casing shoe to clean hole. Pump lube and a sweep at bottom minimal return increase seen after sweep. Circulate bottoms up when back on bottom 90 Units of trip gas seen. Continue to drill to 2951' MD at midnight. Low background and drilling gas is still being encountered. All gas equipment was re calibrated and checked during the short trip. There will be several coal beds between 3100'-3200', 3600' - 3650', and between 3850' and 4100' there is the possibility of a coal bed of over 30' at around 4082' MD. These are all estimated depths. Gas: Max gas was 38 units and the average gas was 23 units Geology: 70% claystone, 30% sandstone, 0% coal 07/17/2013 Continue to drill from 2825' to 3305' MD, Increase in avg ROP to 20' per hour. Small gas peasks between 2825 ' and 3279' MD, gas peak of 161 units seen at 3290' MD, associated with 100% coal in samples. A second peak of 110 Units seen at 3300' MD. Background gas in this section rose to 62 units. Gas: Max gas was 38 units and the average gas was 23 units Geology: 70% claystone, 30% sandstone, 0% coal 07/18/2013 Continue to drill from 3305' to 3755' MD, Increase in avg ROP to 18' per hour. Large gas peaks seen at 3562' MD GP of 226 units, and 3720' MD of 164 units. Both of these were associated with coal beds. Background gas has increased to 51 units. Connection gas of 43 units has been seen, but there is no great increase in this number. Gas: Max gas was 226 units and the average gas was 51 units Geology: 60% claystone, 40% sandstone, 0% coal 07/19/2013 Begin tripping out of hole to shoe. Hang off pipe. BOP test. Begin tripping back in hole. Minimal gas seen on trip out. Change pump liners to 4.5", 1.55 gps. Gas: Max gas was 25 units and the average gas was 15 units Geology: 70% claystone, 30% sandstone, 0% coal 07/20/2013 Continue to TIH, Circulate bottoms up, 142 units of gas seen. Condition mud due to high mud weight, continue to circulate, shakers blinded off circulate till 22:30. Continue drilling to 3798' MD. Large gas peak 370 units at 3786' MD, associated with coal, Mud data from 07/20/2013. Gas: Max gas was 375 units and the average gas was 59 units Geology: 50% claystone, 30% sandstone, 20% coal 07/21/2013 Continue to drill from 3798' to 4495' MD, background gas increased from 50 units to 97 units. A gas peak of 627 U was seen at 4375' MD, associated with a Coal/Sand layer. Other peaks of between 400 units to 500 units has been seen. Large caving's have been noted throughout the day up to 5" in length with an average size of 2-3". Connection gas has been relative to the surrounding formation, with a max connection gas peak of 133 U at 4358' MD. The coal layers should decrease between 4500' and 4650' with only a few coal beds, this may increase between 4650' and 4750' with several thicker coal beds. There are no offset logs with TVD's deeper than 5500'. Gas: Max gas was 670 units and the average gas was 97 units Geology: 20% claystone, 40% sandstone, 40% coal 07/22/2013 Continue to drill from 4495' to 4697' MD, background gas increased from 97 units to 105 units. A gas peak of 313 U was seen at 4668' MD. Associated with a Sand layer. Other peaks of between 200 units and 300 units also seen. Cuttings have predominantly been Coal, Sandstone and Claystone in varying percentages. Predominantly Claystone layers. Large coal caving's still be noted on shakers, 3/4". Spike in SPP at 4697' MD, SPP pressure increase of 400-500 psi, begin to loose SPP. Circulate to establish problems. Begin to pull out of hole to, 4252' MD. Hang up and stick pipe. Begin working pipe to free. Circulate sweep and have a large increase in cuttings. Circulating gas peak of 1058 units associated with an increase in large coal cuttings. Free pipe around 22:00 hours and continue pulling out of hole. Gas: Max gas was 313 units drilling (1038 units tripping) and the average gas was 105 units Geology: 80% claystone, 20% sandstone, 0% coal 07/23/2013 Continue to trip out of hole. Pumping whilst pulling, large amounts of cuttings still being displaced over shakers, reducing closer to casing shoe. Continue to pull inside casing shoe, 2050' MD. At 1558' MD report time. Gas: Max gas was 398 units and the average gas was 35 units 07/24/2013 Continue to trip out of hole. Finish pulling out of hole, discover wash out on last stand of drill pipe before BHA. Break down MWD tools and lay down. Rig service and begin to rig up new BHA. Gas: Max gas was 10 units and the average gas was 0 units 07/25/2013 Begin Testing BOP's. Complete BOP test and pick up new BHA. Begin to trip in hole. Rotate through any tight spots. Reach 3790' and encounter tight spot, unable to work pipe up or down. Begin jarring. Try to work pipe. Small amounts of H2S detected during circulation. Less than 5 ppm. Gas 457 Units max. Gas: Max gas was 457 units and the average gas was 35 units. 07/26/2013 Continue to attempt to free pipe. So far unable to work stuck pipe. Circulation still established. Pump Black Magic pill at 16:10 and allow to sit. Gas: Max gas was 182 units and the average gas was 35 units 07/27/2013 Continue to wait on Black Magic pill, pump to move Black magic to shoe. Gas: Max gas was 0 units and the average gas was 0 units 07/28/2013 Wait on Black Magic Pill. Pump further 70 bbl Black Magic pill at 21:30, begin to wait for 48 hrs for pill to sit. Gas: Max gas was 182 units and the average gas was 0 units 07/29/2013 Continue to wait on black magic pill. Gas: No significant gas data. 07/30/2013 Continue to wait on black magic pill. Gas: Max gas was 398 units and the average gas was 35 units 07/31/2013 Use free point tool to separate pipe at 1980' MD, leaving 1922' of fish in the hole. Pull free pipe out of the hole and lay down. BOP test and rig maintenance. Gas: No significant gas data. 08/01/2013 Waiting for parts for top drive repair. Gas: No significant gas data. 08/02/2013 SDL personnel on standby in Anchorage. 08/03/2013 SDL personnel on standby in Anchorage. 08/04/2013 SDL personnel on standby in Anchorage. 08/05/2013 SDL return to location, prepare SDL equipment and calibrate gas equipment. Finish laying down BHA and pipe, fix brake and test BOP’s. 08/06/2013 Continue to Test BOP's, complete BOP test and pick up BHA. Run in hole with BHA and shallow pulse test. Continue to run in on pipe. Top drive sensor cable damaged by wind, Totco currently not receiving data. Gas: Max gas was 118 units and the average gas was 0 units 08/07/2013 Continue to trip in hole, circulate and pump whilst tripping in. Large amounts of coal cavings seen on Shakers. Complete trip to bottom, circulate a sweep, begin drilling at 23:20. Gas: Max gas was 182 units and the average gas was 94 units Geology: 60% claystone, 20% sandstone, 20% coal 08/08/2013 Drill ahead f/ 4723' MD to 5351' MD. Samples consist of clays and sandstone with beds of coal. Large coal bed found between 5300' MD-5320' MD. Gas: Max gas was 780 units and the average gas was 103 units Geology: 40% claystone, 10% sandstone, 50% coal 08/09/2013 Drill ahead from 5351’ MD to 5643’ MD. At 5643’ MD, the drill string became stuck. Circulate and attempt to free drill string. Samples consist of clays and sandstone with large amounts of coal between 5370’ MD – 5410’ MD and 5570’ MD – 5580’ MD. A gas peak of 560 units was recorded in sandstone at approximately 5448’ MD. Gas: Max gas was 656 units and the average gas was 141 units Geology: 60% claystone, 20% sandstone, 20% coal 08/10/2013 Continue to attempt to free drill string. Circulate and attempt to set jars off. Rig-up and Run-In- Hole with the freepoint tool. The drillstring is stuck near casing shoe. Rig-up and Run-In-Hole with charge to separate pipe. Pull-out-of-hole, and then Rig-up fishing tools. Gas: Max gas was 97 units and the average gas was 14 units 08/11/2013 Jar without any success. Begin to mix black magic. Wait for more black magic to arrive on location. Continue to mix black magic. Gas: Max gas was 114 units and the average gas was 15 units 08/12/2013 Continue to mix black magic. Pump black magic down hole and let activate. Gas: Max gas was 33 units and the average gas was 5 units 08/13/2013 Continue to let black magic soak. Gas: Max gas was 0 units and the average gas was 0 units 08/14/2013 Continue to let black magic soak. Circulate and try to work pipe. Prepare to mix additional black magic. A carbide pill dropped this afternoon. The calculated strokes for this pill were 5564 strokes and the actual strokes were 7886, which is an excess of 2322 strokes (approximately 86 bbls). Gas: Max gas was 187 units and the average gas was 44 units 08/15/2013 Mix a second black magic pill. Pump pill down hole and let soak. Gas: Max gas was 187 units and the average gas was 44 units 08/16/2013 Continue to let black magic soak. Gas: Max gas was 187 units and the average gas was 44 units 08/17/2013 Continue to let black magic soak and active. Begin jarring and working pipe. Gas: Max gas was 187 units and the average gas was 44 units 08/18/2013 Continue jarring operations and working pipe. Use free point tool and separate pipe around 1900'. Pull-out-of-hole and begin to test BOPs. Gas: Max gas was 187 units and the average gas was 44 units 08/19/2013 Continue to test BOPs. Perform top drive repairs. Gas: Max gas was 0 units and the average gas was 0 units 08/20/2013 Continue to repair top drive. Pick up 4.5" DP with fishing stabbing tool and Run-in-hole. Stab into pipe and begin to work for 1 hour, circulate at 2013’ Gas: Max gas was 187 units and the average gas was 44 units 08/21/2013 Continue to work pipe and circulate. Freepoint pipe and pull-out-of-hole with remaining pipe. Gas: Max gas was 187 units and the average gas was 44 units 08/22/2013 Run-in-hole to shoe and circulate. Waiting to cement due to weather. Gas: Max gas was 0 units and the average gas was 0 units 08/23/2013 Pump cement and pull-out-of-hole. Gas: Max gas was 187 units and the average gas was 44 units 08/24/2013 Wait on cement to cure and pick up BHA. Run-in-hole and tag cement at 1918' MD. Circulate hole clean and pull-out-of-hole. Rig up wireline and use wireline to run-in-hole and set retainer plug. Officially side track from Olson Creek #1 PB1 and pull-out-of-hole. Test BOP. Gas: Max gas was 27 units and the average gas was 12 units 08/25/2013 Pick up BHA. Run-in-hole with whipstock assembly. Break off whipstock and begin to mill window at 1699' MD to 1708'. Mill window to 1714' MD and circulate hole clean. Begin to pull- out-of-hole to pick up drilling BHA. Gas: Max gas was 0 units and the average gas was 0 units 08/26/2013 Continue to pick up drilling BHA. Run-in-hole to 1714' MD. Pull-out-of-hole to change to milling BHA, due to not being able to get PDC bit through milled window. Lay down drilling BHA and pick up milling BHA and run-in-hole. Gas: Max gas was 47 units and the average gas was 20 units 08/27/2013 Continue to run-in-hole with milling BHA. Drill to 1728' MD. Perform FIT. Drill to 1740' MD and circulate. Pull-out-of-hole and lay down milling BHA. Begin to pick up drilling BHA. Change well name to Olson #1A. Gas: Max gas was 117 units and the average gas was 34 units 08/28/2013 Continue to run-in-hole with drilling BHA. Drill ahead from 1740' MD to 2109' MD. Begin to pull- out-of-hole to change bit. Samples consist mostly of claystone with some sandstone. Coal seen in samples from 1800' MD to 1900' MD and from 1980' MD to 1990' MD. Gas: Max gas was 252 units and the average gas was 51 units Geology: 70% claystone, 30% sandstone, 0% coal 08/29/2013 Continued pulling out of the hole to surface and laid down BHA. Picked up BHA and ran in the hole to bottom. Drilled ahead from 2109’ MD to 2213’ MD. Gas: Max gas was 187 units and the average gas was 44 units Geology: 50% claystone, 20% sandstone, 10% siltstone, 20% coal 08/30/2013 Drilled ahead from 2213’ MD to 2635’ MD Gas: Max gas was 126 units and the average gas was 35 units Geology: 50% claystone, 90% sandstone 08/31/2013 Drilled ahead from 2636’ MD to 3027’ MD Gas: Max gas was 93 units and the average gas was 26 units Geology: 40% claystone, 60% sandstone 09/01/2013 Drilled ahead from 3027’ MD to 3133’ MD. Pulled out of the hole to test BOPs. Gas: Max gas was 32 units and the average gas was 20 units Geology: 40% claystone, 50% sandstone, 10% coal 09/02/2013 Completed BOP test. Ran in the hole to bottom at 3,133’ MD and drilled ahead to 3,250’ MD Gas: Max gas was 48 units and the average gas was 30 units Geology: 30% claystone, 70% sandstone 09/03/2013 Drilled ahead from 3,250’ to 3,344’ MD. Encountered pressure loss. Pulled out of the hole and examined drill pipe for washout. No washout detected. BHA components and bit still intact. Replaced Bit/Motor and MWD components. Began running in the hole on steel drill pipe and new BHA. Gas: Max gas was 88 units and the average gas was 27 units Geology: 30% claystone, 70% sandstone 09/04/2013 Calibrated gas detection equipment and continued tripping in to bottom at 3,344' MD. Drilled ahead, back reaming each stand to 3,695' MD. Lost connection to the rigs depth tracking system. Continued drilling out one stand to 3,725' MD. Washed and reamed while trouble shooting. Repaired and resumed drilling out to 3,728' MD. Gas: Max gas was 88 units and the average gas was 27 units Geology: 80% claystone, 10% sandstone 09/04/2013 Continue to Drill from 3728' to 3907' MD. Coal bed at 3793' MD associated with a 320 U gas peak. Begin short tripping to clean hole at 6am. Trip out of hole whilst pumping currently at 1685' MD inside casing window. Formation consists of 80% silty claystone and 20% sandstone. Gas: Max gas was 320 units and the average gas was 54 units Geology: 80% claystone, 20% sandstone 09/05/2013 Continue to Drill from 3728' to 3907' MD. Coal bed at 3793' MD associated with a 320 U gas peak. Begin short tripping to clean hole at 6am. Trip out of hole whilst pumping currently at 1685' MD inside casing window. Gas: Max gas was 120 units and the average gas was 43 units Geology: 80% claystone, 20% sandstone 09/06/2013 Finish short trip and pull pipe inside milled window. Begin to TIH, experience problems with top drive. Begin repairs on top drive. Complete repairs and TIH, drill ahead from 3907' to 3985' MD. Gas: Max gas was 120 units and the average gas was 43 units Geology: 80% claystone, 20% sandstone 09/07/2013 Continued drilling ahead from 3985' MD to 4115' MD. Pumped sweep. Noted 100% increase in cuttings at the shakers. Continued drilling out to 4175' MD. Pumped additional sweep. Minimal increase in cuttings noted at the shakers. Drilled ahead to 4372' MD. Pumped sweep, noting 80% increase in cuttings at the shakers. Circulated sweep out of the hole. Began 500' short trip, pumping each joint at 104 SPM (160 GPM) at report time. Gas: Max gas was 304 units and the average gas was 61 units Geology: 70% claystone, 20% sandstone, 10% coal 09/08/2013 Continue to short trip inside casing window to repair mud pump leak. Continue to Repair mud pump whilst rigging up to complete weekly BOP test. Complete BOP test and TIH to bottom. Gas: Max gas was 142 (Trip Gas) units and the average gas was 0 units Geology: 70% claystone, 20% sandstone, 10% coal 09/09/2013 Complete BOP test, continue to repair flow line from pumps to top drive, several repair attempts unsuccessful. Look ahead, complete repairs to pumps, trip in hole to continue drilling. Gas: No significant gas data. Geology: 70% claystone, 20% sandstone, 10% coal 09/10/2013 Complete work on pump repairs. Begin to run in hole, trip in hole to 2300' MD, attempt to circulate, one pump failed to start, investigate problem whilst circulating at slow pump rate. Discover starter motor not working and being repairs. Parts coming from Anchorage. Still working on repairs at midnight, starter motor installed working on starting engine. Gas: Max gas was 43 (Trip Gas) units and the average gas was 0 units Geology: 0% claystone, 0% sandstone, 0% coal 09/11/2013 Complete rig repairs, Trip in hole and circulate, trip gas of 101 units. Continue drilling 6.75" hole section from 4372' to 4577' MD at 00:00. Max gas of 206 units seen at 4378' MD, pump 20 ppg weighted sweep at 4560' MD, sweep returned 107 strokes late with an increase of 70% cuttings over shakers. Cuttings predominantly less than 0.5 mm or 0.2", cuttings definition is limited, some crushed cuttings in samples, little to no cavings produced. Gas: Max gas was 206 (Trip Gas 101) units and the average gas was 42 units Geology: 80% claystone, 20% sandstone, 0% coal 09/12/2013 Continue drilling 6.75" hole section from 4577' MD to 4867' MD. Samples have consisted mainly of claystone with typically 10-30% sandstone. Abundant coal observed at 4590' MD - 4610' MD, 4700' MD - 4710' MD, and 4830' MD - 4840' MD. Gas: Max gas was 236 units and the average gas was 60 units Geology: 60% claystone, 30% sandstone, 10% coal 09/13/2013 Continue drilling 6.75" hole section from 4867’ MD to 4897’ MD. Pump sweep, sweep returned at estimated in/out strokes. Back ream out of hole to approximately 4300’ MD. Pump a second sweep, sweep returned 300 strokes late. Begin to run in the hole. Fix shaker and pump issues and continue to run in the hole to 4897’ MD. Continue to drill ahead to 5043’ MD. Samples have consisted mainly of claystone with abundant sandstone at 4950’ MD – 4970’ MD. Abundant coal observed at 4880’ MD – 4890’ MD, 4980’ MD – 4990’ MD, and 5010’ MD – 5020’ MD. Gas: Max gas was 390 units and the average gas was 66 units Geology: 80% claystone, 10% sandstone, 10% coal 09/14/2013 Continue drilling 6.75" hole section from 5043' MD to 5253' MD. Begin to Back-ream out of the hole to fix top drive issues. Samples have consisted of claystone and sandstone with abundant coal from 5080' MD-5090' MD, 5110' MD - 5120' MD and 5160' MD - 5170' MD. Gas: Max gas was 286 units and the average gas was 60 units Geology: 60% claystone, 40% sandstone, 0% coal 09/15/2013 Continue to back ream out of the hole. Drill pipe packed off at approximately 4205’ MD. Run in hole to work pipe and re-gain circulation (a gas peak of 990 units was observed). Pump two sweep and continue to back ream out of the hole. Drill pipe packed off again at approximately 3989’ MD. Run in hole and re-gain circulation (a gas peak of 1017 units was observed). Raised mud weight to 9.6+ and pump another sweep. Continue to circulate while conditioning mud. Gas: Max gas was 1017 units and average gas was 62 units. Geology: Multiple samples taken from 1017 unit gas peak consisted of 80-90% unconsolidated sandstone and 10-20% coal. Samples from sweeps consisted mainly of claystone with some coal. 09/16/2013 Continue to circulate and condition mud. Back ream out of the hole. Fix pump issues and continue to back ream out of the hole. Gas: Max gas was 60 units and the average gas was 16 units 09/17/2013 Continue to back-ream out of the hole. Test BOPs. Gas: Max gas was 16 units and the average gas was 0 units 09/18/2013 Continue to test BOPs. Repair top drive. Lay down BHA. Pick-up BHA. Run in hole. Gas: Max gas was 0 units and the average gas was 0 units 09/19/2013 Continue to run in hole and pump sweeps as needed. Drill ahead from 5253' MD to 5263' MD. Gas: Max gas was 110 units and the average gas was 0 units Geology: Sweep #1 @ 4273' MD - 90% Clyst, 10% Coal; Sweep #2 @ 4624' MD - 50% Coal; 40% Clyst; 10% Sst; Sweep #3 @ 5200' MD - 70% Sst, 20% Clyst, 10% Coal 09/20/2013 Drill ahead from 5263' MD - 5353' MD. Fix pump. Pump sweep & continue to drill ahead to 5511' MD. Samples have consisted mainly of claystone with 10-30% sandstone. Abundant sandstone observed at 5380' MD - 5390' MD & 5420' MD - 5450' MD. Abundant coal found between 5320' MD - 5330' MD, 5370' MD - 5380' MD, 5390' MD - 5400' MD & 5450' MD - 5460' MD. Sample from sweep at 5327' MD consisted of 80% coal, 10% claystone, 10% sandstone. Gas: Max gas was 316 units and the average gas was 78 units and the connection gas was 210 units Geology: 40% claystone, 30% sandstone, 30% coal 09/21/2013 Drilled ahead from 5511’ MD to 5715’ MD. Pulled out of the hole due to 56 joints of drill pipe and BHA twist off. Waiting for fishing hands to arrive in the morning. Samples consisted of mainly claystone. Abundant coal observed from 5650’ MD – 5670’ MD and 5670’ MD – 5680’ MD. Sample from sweep pumped at 5649’ MD consisted of 80% claystone, 10% coal, and 10% sandstone. Gas: Max gas was 393 units and the average gas was 50 units Geology: 80% claystone, 10% sandstone, 10% coal 09/22/2013 Continue to wait for fishing hands. Run-in-hole with fishing tools. Attach to drillstring & POOH, getting stuck at 5438' MD. Pump sweep. Attempt to work drillstring. Run-in-hole with survey tool & take survey. Sample from sweep at 5438' MD consisted of 70% clyst, 20% coal, 10% sst. Gas: Max gas was 129 units and the average gas was 12 units 09/23/2013 Continue to take survey. Pull-out-of-hole with survey tool. Pull-out-of-hole with fishing BHA. Make-up & Run-in-hole with new fishing BHA. Begin to work pipe. Make top drive repairs. Circulate & continue work pipe. Gas: Max gas was 51 units and the average gas was 0 units 09/24/2013 Pull-out-of-hole with fishing assembly. Rigged up to test BOP. Began testing BOP. Prepare to mix black magic pill. Gas: Max gas was 4 units and the average gas was 1 units 09/25/2013 Complete BOP testing. Mix the black magic pill. Run-in-hole with fishing BHA. Prepare to pump the black magic pill. Gas: No significant gas data. 09/26/2013 Pump Black Magic. SDL released from location. Gas: No significant gas data. 09/27/2013 SDL off location. Gas: No significant gas data. 09/28/2013 SDL recalled to location. Allow black magic pill to soak. Gas: No significant gas data. 09/29/2013 Circulate out the black magic. Attempt to pull the pipe with no luck. Pollard Wireline was then rigged up and the drill pipe was separated at 2308'. Once removed from the string, the hole was circulated out and a carbide bomb was circulated around, with 54 strokes over the proposed circulation. Adjusted volume increase was calculated out at 12% over 600'. The rig then pulled up to the 814'. W ait on orders from town. Gas: Max gas was 118 units 09/30/2013 Received orders from town to pull out of the hole, lay down the backoff equipment, and to pick up stinging equipment to do a downhole cement job. Tripped down the hole and broke circulation. Max gas 134 units. Lined up and completed a cement job. Once completed, the string was pulled out of the hole. Prepare to run in hole with locating equipment for the trip to bottom to tag cement. Gas: Max gas was 134 units 10/1/2013 Continued to wait on cement plug to set. Made up drillable BHA and ran in the hole to 1000'. Circulated 2 bottoms up and then continued to wait on cement. At 10:30, pumped down and thought had tagged cement at 1535. Circulated bottoms up and found no cement and continued tripping in the hole to 1700' with still no luck on encountering cement. Circulated bottoms up and verified. Continued tripping in the hole to 1830', upon which the hole showed some weight being applied. Circulated bottoms up, but found no cement. Continued to trip in the hole to 1925' and circulated bottoms up and found no cement again. Pulled out of the hole and laid down the BHA to pick up drill pipe, open-ended to do another cement job. Mix a high- vis high-weight pill and then tripped in the hole to 1800' Circulated bottoms up. After circulating, continued tripping in the hole. At report time, the BHA was at 2095'. Gas: Max gas was 32 units 10/2/2013 Continue to Circulate, working the pipe, and clean the hole form 2070' to 2100'. Pumped 22 bbls of a 14.5+ ppg pill at 2100'. Once the pill was spotted on bottom, pulled out of the hole from 2100' to 1920', and circulated the hole clean. Rigged up at that point and pumped a 13.5 ppg cement plug at 1920'. Cement plug was pumped and then pulled out of the hole from 1920' to 990'. Circulated drill pipe clean of cement and then pulled out of the hole. Once out of the hole, cleared the rig floor and then pressure tested the BOP's. Once the BOP's were tested, the wear bushing was reinstalled. Rigged up and then ran in the hole with open ended drill pipe as a BHA. Tripped in the hole from surface to 1020' while pumping down the drill pipe and circulating every 100'. Circulated at 1200' to surface and found no contamination in the mud or cement. Continued in the hole from 1200' to 1300' while circulating the hole and found no contamination, nor cement. Pumped in the hole form 1300' to 1420'. Broke circulation again, and once on surface, found no contamination, nor cement. Pulled out of the hole to 1300' and circulated the hole, waiting on the cement. Tripped down the hole again from 1320' to 1500' to try and tag cement. Circulated the hole with two bottoms up found no contamination, nor cement. Tripped up the hole to 1410' and started circulating the hole, waiting on cement. Currently at the time of the report working the pipe circulating the hole and continued waiting on cement. Gas: Max gas was 30 units 10/3/2013 Continue to Circulate, working the pipe, and clean the hole at 1410', waiting on cement. Ran in the hole from 1410' to 1785' and tagged cement at 1785'. Circulated bottoms up and confirmed that cement was present. Once confirmed, two bottoms up were circulated to clean the hole up and the pulled out of the hole from 1785' to Surface. Once on surface, serviced the rig and fabricated a mule shoe and installed. Once installed, ran in the hole with 4 1/2" drill pipe to 1690'. Washed down to cement top at 1785', circulated bottoms up, and picked up the hole to 1780'. Rigged up cement lines, circulating pin and cross-over. Held a Pre-Job safety meeting and then performed the cement job. Pumped 10 bbls spacer, down the hardline, then a batch of 23.6 barrels slurry with 5 barrels water behind and then displaced with 9.7 ppg mud. Cement in place at 1510 hrs. Rigged down the cement lines with the well on a vacuum. Pulled out of the hole from 1780' to 790' and circulated three times until the shakers were clean. Restarted pulling out of the hole from 790' to surface, made up a bit to the drill pipe, and then tripped back in the hole to 785'. Lined up and started circulating at the 785', waiting on cement. Gas: Max gas was 31 units. 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 Me a s u r e d D e p t h Rig Days Prognosed Actual D a y s v s . D e p t h 23 June 2013 Sperry SDL Arrived on Location 05 Oct 2013 Sperry SDL Released from Location WELL NAME: Olson Creek #1 & Olson Creek #1-PB1 OPERATOR: Cook Inlet Energy MUD CO: Baroid RIG: Miller Rig 34 SPERRY JOB: AK-XX-0900491711 LOCATION: West Side-Cook Inlet AREA: Kenai Peninsula Borough STATE: Alaska SPUD: 25 June 2013 TD: 21 Sept 2013 Commenced 10.875" Surface Hole Section On Bot: 14:44 25 Jun 2013 Rig Repairs 26 Jun 2013 TD Surface Hole Section 2049' MD, 2044' TVD Off Bot: 13:25 04 Jul 2013 Landed 7.625" Casing 1998' MD, 1958' TVD 06 Jul 2013 Commenced 6.75" Production Hole Section On Bot: 19:02 12 July 2013 Short Trip for hole cleaning On Bot: 19:30 16 Jul 2013 Short Trip for BOP Test On Bot: 22:30 20 Jul 2013 POOH to Assess Washout/ Tool Failure 22 Jul 2013 SDL Released from Location 02 Aug 2013 SDL Return to Location 05 Aug 2013 Commenced 6.75" Production Hole Section On Bot: 23:20 07 Aug 2013 TD Olson Creek #1-PB1 5643' MD, 5549' TVD Off Bot: 15:20 09 Aug 2013 Cement back and set Whipstock Olson Creek #1 Well bore to 1714' MD On Bot: 18:00 23 Aug 2013 Mill window to drill 6.75" Production Hole Section On Bot: 13:30 26 Aug 2013 Short Trip for BOP Test On Bot: 17:00 02 Sep 2013 TOOH to assess loss of pressure and change bit On Bot: 05:00 04 Sep 2013 Short Trip to Clean Hole On Bot: 21:10 06 Sep 2013 Short Trip to Clean Hole On Bot: 14:07 13 Sep 2013 Short Trip to Clean Hole On Bot: 10:58 11 Sep 2013 Short Trip to Repair Top Drive On Bot: 23:45 19 Sep 2013 TD Olson Creek #1 5715' MD, 5683' TVD Off Bot: 18:50 21 Sep 2013 SDL Released from Location 26 Sep 2013 SDL Return to Location 28 Sep 2013 WELL NAME:LOCATION:West Side-Cook Inlet OPERATOR:AREA:Kenai Peninsula Borough SPERRY JOB:STATE:Alaska RIG:Miller Rig 34 HOLE SECTION:Production EMPLOYEE NAME:DATE: Sperry Drilling Confidential Document v 3.0 Cook Inlet Energy AK-XX-0900491711 Craig Amos 28-Jul-2013 Olson Creek #1 What went as, or better than, planned: There was a lot of moisture in the line from the gas trap to the 9000 unit, this needed constant attention and regular maintenance. Recommendations: Innovations and/or cost savings: All computer systems and rig communications worked well with no faults or LTI's due to Sperry activities. Difficulties experienced: Use of moisture filters of some description would be useful to help prevent damage to gas sampling machines. N/A Surface Data Logging After Action Review Surface Data Logging WELL NAME:LOCATION:West Side-Cook Inlet OPERATOR:AREA:Kenai Peninsula Borough SPERRY JOB:STATE:Alaska RIG:Miller Rig 34 HOLE SECTION:Production EMPLOYEE NAME:DATE: Sperry Drilling Confidential Document v 3.0 Cook Inlet Energy AK-XX-0900491711 Andrew Bongard 1-Oct-2013 Olson Creek #1-PB1 What went as, or better than, planned: We noticed that after the black magic was circulated out of the hole, the THA will display elevated total gas values for some time. In order to mitigate this issue, we matched the total gas values to the chromatograph gas values. Eventually the total gas values from the THA cleaned up, but it did take quite a while (days). Recommendations: Innovations and/or cost savings: Everything went as well as expected. Communication among SDL engineers, rig personnel, company men, and town was very strong. Everyone was receptive to eachothers' ideas and all lines of communication were open. Difficulties experienced: Discuss whether or not others have seen this issue with the elevated gas values from THA and black magic. Also, do some research to see if there is a better/faster solution. Have a second equipment rack, or ensure there is room to mount all of the gas gear (even the backup gear) in the rack. Mounting the backup gear in the rack will allow the engineer to quickly switch to the backup equipment if necessary. N/A Surface Data Logging After Action Review Olson Creek #1 & Olson Creek #1-PB1 Cook Inlet Energy Baroid Miller Rig 34 AK-XX-0900491711 Date Depth Wt Vis PV YP Gels Filt R600/R300/R200/R100/ R6/R3 Cake Solids Oil/Water Sd Pm pH MBT Pf/Mf Chlor Hard ft - MD ppg sec lb/100 lb/100ft2 m/30m Rheometer 32nds %%%ppb Eqv mg/l Ca++ 25-Jun 222 8.95 45 7 22 11/14/0 10.0 36/29/25/19/10/9 1/0 2.1 0.0/96 0.05 0.20 10.0 -0.00/0.80 23000 120 Drilling 26-Jun 231 8.95 44 7 22 11/14/0 9.0 36/29/24/19/10/9 1/0 2.1 0.0/96 0.50 0.20 9.0 -0.10/0.70 23000 120 Rig Repair 27-Jun 231 9.00 45 8 21 11/15/0 9.0 37/29/25/19/10/8 1/0 3.1 0.0/95 0.05 0.20 9.0 -0.10/0.70 23000 120 Rig Repair 28-Jun 413 9.10 45 8 21 11/14/0 8.0 37/29/25/20/10/9 1/0 3.2 0.0/95 1.00 0.15 10.0 2.5 0.30/1.0 22000 80 Drilling 29-Jun 506 9.10 45 8 22 11/14/0 8.0 38/30/25/10/10/9 1/0 3.2 0.0/95 1.00 0.15 9.0 2.5 0.30/1.0 22000 80 Tripping 30-Jun 898 9.30 44 9 24 10/13/0 8.0 42/33/28/23/10/8 1/0 4.3 0.0/94 2.00 0.50 9.1 2.5 0.45/1.90 20000 120 Drilling 1-Jul 1192 9.20 46 10 25 10/12/0 8.0 45/35/30/24/10/9 1/0 3.2 0.0/95 3.00 0.15 8.8 2.5 0.25/2.0 22000 80 Drilling 2-Jul 1550 9.55 58 16 37 13/16/0 10.0 69/53/46/37/17/14 2/0 7.0 0.0/91.0 4.00 0.20 9.5 5.0 0.65/3.35 25000 80 Drilling 3-Jul 1853 9.60 53 13 37 13/20/0 10.0 63/50/4436/18/16 3/0 6.9 0.0/9.0 4.50 0.80 9.4 5.0 0.70/3.10 26000 80 Drilling 4-Jul 2049 9.80 57 14 35 12/23/0 10.0 63/49/4335/18/16 3/0 9.1 0.0/89.0 5.00 0.80 9.3 5.0 0.80/3.20 25000 80 Pulling out of hole 5-Jul 2049 9.50 62 16 28 12/22/0 10.0 60/44/35/28/15/13 3/0 6.0 0.0/92.0 4.50 0.80 9.0 5.0 0.80/3.20 25000 80 Run casing and cement 6-Jul 2049 9.50 59 16 28 15/22/0 10.0 60/44/35/28/15/13 3/0 6.0 0.0./92.0 4.00 0.80 9.3 5.0 0.80/3.10 25000 100 Land Casing at 1998' MD. Rig down Cement. Nipple up BOP. 7-Jul 2049 9.50 55 15 28 13/20/0 10.0 58/43/33/25/13/11 3/0 6.0 0.0/92.0 3.00 0.80 9.2 5.0 0.80/3.10 25500 100 Rig up Rig Down 8-Jul 2049 9.35 50 12 24 9/16/0 10.0 48/36/32/25/13/11 2/0 5.2 0.0/93.0 2.00 0.20 8.4 7.5 0.22/3.10 22000 360 Rig up Rig Down 9-Jul 2049 9.20 55 12 26 9/13/0 10.0 50/38/32/26/13/12 3/0 4.2 0.0/94.0 3.00 0.20 8.4 7.5 0.20/3.10 22000 320 POOH 10-Jul 2049 9.20 55 13 22 9/13/0 10.0 48/35/32/26/12/11 2/0 4.2 0.0/94.0 2.00 0.20 8.5 7.5 0.20/3.10 22000 320 POOH. Rig Repairs. Test BOP 11-Jul 2049 9.15 53 12 22 11/13/0 10.0 46/34/28/21/13/12 2/0 4.2 0.0/94.0 1.00 0.20 8.4 7.5 0.15/2.60 22000 300 TIH 12-Jul 2069 9.50 46 15 18 4/5/0 5.0 48/33/26/18/4/3 2/0 5.7 0.0/92.0 1.00 1.10 8.8 5.0 0.90/4.00 29000 240 Condition/circ. Mud 13-Jul 2200 9.50 52 18 19 4/8/0 5.0 55/37/30/21/6/4 2/0 4.5 0.0/94.0 1.00 0.70 9.0 6.0 0.25/3.0 27000 120 Drilling 14-Jul 2561 9.60 51 19 20 4/6/0 4.6 60/40/33/21/6/4 2/0 4.6 0.0/93.0 1.50 0.60 9.0 1.5 0.1/0.20 27000 100 Drilling 15-Jul 2825 9.60 54 22 21 4/6/0 4.8 65/43/34/23/6/4 2/0 4.8 0.0/93.0 3.00 0.70 9.0 7.5 0.4/3.1 27000 120 Drilling 16-Jul 2951 9.60 55 22 20 4/5/0 4.8 64/42/33/23/6/4 2/0 4.8 1.0/92.0 1.00 0.70 9.0 7.5 0.4/3.1 25000 100 Drilling 17-Jul 3305 9.65 51 23 20 4/5/0 4.8 66/43/34/22/4/3 2/0 5.1 1.0/92.0 1.00 0.90 9.3 5.0 0.25/2.5 23000 120 Drilling 18-Jul 3755 9.60 52 24 19 4/5/0 4.8 67/43/33/22/5/3 2/0 5.1 1.0/92.0 1.00 0.90 9.3 7.5 0.25/2.5 24000 100 Drilling 19-Jul 3755 9.50 55 21 19 7/11/0 4.5 59/40/33/23/7/6 2/0 4.0 1.0/93.0 0.25 0.40 9.5 2.5 0.1/1.1 25000 100 Drilling 20-Jul 3798 9.55 46 16 18 5/6/0 4.5 50/34/27/19/6/4 2/0 5.2 2.0/91.0 0.50 0.40 9.0 2.5 0.25/2.7 22000 120 BOP Testing/Tripping/Drilling 21-Jul 4495 9.55 52 22 20 8/12/0 4.6 64/42/36/26/9/8 2/0 5.1 2.0/91.0 1.00 0.50 9.0 5.0 0.2/2.5 24000 160 Drilling 22-Jul 4697 9.70 55 22 19 8/11/0 4.8 58/40/33/24/10/8 2/0 6.1 2.0/90.0 1.00 0.50 9.5 5.0 0.25/2.7 24000 120 Drilling 23-Jul 4697 9.55 46 18 13 7/10/0 4.9 44/31/25/19/8/7 2/0 5.1 1.0/92.0 1.00 0.40 9.5 5.0 0.2/2.9 24000 140 Trippping 24-Jul 4697 9.50 48 23 20 6/8/0 4.9 66/43/35/25/7/6 2/0 4.8 2.0/91.0 0.50 0.30 9.9 7.5 0.25/3.20 28000 160 Tripping/ BOP Testing 25-Jul 4697 9.50 49 22 21 5/7/0 4.9 65/43/33/22/6/5 2/0 4.8 2.0/91.0 0.50 0.40 9.8 7.5 0.3/3.20 28000 160 Tripping 26-Jul 4697 9.50 52 24 18 6/8/0 4.9 66/42/33/23/6/5 2/0 4.9 2.0/91.0 0.50 0.40 9.2 7.5 0.5/3.0 28000 160 Tripping 27-Jul 4697 9.50 53 22 19 6/7/0 5.0 63/41/31/20/6/5 2/0 5.3 2.5/90.0 0.50 0.20 9.1 7.5 0.2/3.0 28000 160 Waiting on Black Magic 28-Jul 4697 9.50 60 25 17 7/9/0 4.5 67/42/32/21/7/6 2/0 5.3 2.5/90.0 0.50 0.30 9.0 7.5 0.3/3.0 28000 160 Waiting on Black Magic 29-Jul 4697 9.50 60 25 17 7/9/1 4.5 67/42/32/21/7/6 2/0 5.3 2.5/90.1 0.50 0.30 9.0 7.5 0.3/3.1 28000 160 Waiting on Black Magic 30-Jul 4697 9.50 60 25 17 7/9/2 4.5 67/42/32/21/7/6 2/0 5.3 2.5/90.0 0.50 0.30 9.0 7.5 0.3/3.2 28000 160 Waiting on Black Magic 31-Jul 4697 9.50 60 25 17 7/9/0 4.5 67/42/32/21/7/7 2/1 6.3 2.5/90.1 0.50 0.30 9.0 7.5 0.3/3.3 28000 160 Separate pipe and TOOH 1-Aug 4697 9.50 60 25 17 7/9/1 5.5 67/42/32/21/7/8 2/2 7.3 2.5/90.2 0.50 0.30 9.0 7.5 0.3/3.4 28000 160 wait on parts for top drive 2-Aug 4697 9.55 52 15 15 2/0/0 4.8 45/30/22/15/4/3 1/0 6.0 2.0/90 0.50 0.15 9.5 7.5 0.5/2.1 26000 160 Repairing Top Drive 3-Aug 4697 9.55 51 16 14 2/5/0 4.8 46/30/21/16/4/2 1/0 6.0 2.0/90.0 0.50 0.15 9.4 7.5 0.4/2.1 26000 160 Finish Repairing Top Drive 4-Aug 4697 9.65 58 18 17 2/5/0 3.2 53/35/23/18/4/2 1/0 7.4 5.0/86.0 0.50 0.25 10.1 5.0 0.3/2.4 21000 80 Finish Tripping out of hole/Test BOP 5-Aug 4697 9.70 53 24 20 4/5/0 3.4 68/44/34/22/5/3 1/0 6.1 6.0/86.0 0.50 0.70 9.0 5.0 0.4/2.5 25000 80 Testing BOP's 6-Aug 4697 9.65 56 20 17 3/5/0 3.6 57/37/29/19/4/3 1/0 6.1 5.0/87.0 0.50 0.70 9.7 5.0 0.5/2.6 25000 80 Tripping in Run 400 7-Aug 4723 9.75 55 20 27 7/11/0 3.2 67/47/36/26/9/7 1/0 8.1 4.0/86.0 0.50 0.40 9.0 5.0 0.1/0.4 25000 80 Tripping Drilling Remarks WELL NAME:LOCATION:West Side-Cook Inlet OPERATOR:AREA:Kenai Peninsula Borough SPERRY JOB:TD:21-Sep-2013 MUD CO:STATE:Alaska RIG:SPUD:25-Jun-2013 W a t e r a n d O i l B a s e d M u d R e c o r d Date Depth Wt Vis PV YP Gels Filt R600/R300/R200/R100/ R6/R3 Cake Solids Oil/Water Sd Pm pH MBT Pf/Mf Chlor Hard ft - MD ppg sec lb/100 lb/100ft2 m/30m Rheometer 32nds %%%ppb Eqv mg/l Ca++ 8-Aug 5351 9.65 54 20 25 8/11/0 4.0 65/45/36/26/9/7 2/0 10.8 4.0/85.0 0.50 0.60 9.5 7.5 0.30/2.70 24000 160 Drilling 6.75" Section 9-Aug 5643 9.90 63 27 28 8/13/0 4.2 82/55/44/30/11/8 2/0 8.1 4.0/86.0 1.00 0.70 9.2 7.5 0.80/2.10 25000 120 Drill 6.75" Section/Attempt free DP 10-Aug 5643 9.90 62 25 28 8/0/0 4.2 78/53/42/34/12/9 2/0 6.9 6./85.0 0.40 1.00 9.4 7.5 0.90/1.50 28000 140 R/U Fishing Tools 11-Aug 5643 9.90 64 25 27 9/14/0 4.2 77/52/42/33/13/10 2/0 6.9 6.0/85.0 0.25 0.90 9.2 7.5 1.00/1.40 28000 140 Mix Black Magic 12-Aug 5643 9.90 65 24 27 9/14/0 4.3 75/51/40/31/14/11 2/0 7.5 6.5/84.0 0.25 0.80 9.1 7.5 0.90/1.20 27000 140 Pump Black Magic 13-Aug 5643 9.90 64 25 28 9/13/0 4.6 78/53/43/34/13/10 2/0 7.1 6.0/85.0 0.25 0.8 9.0 7.5 0.60/1.20 26000 140 Working Pipe 14-Aug 5643 9.90 53 20 22 7/12/0 4.6 62/42/31/24/11/8 2/0 6.6 6.5/85.0 0.25 0.80 9.0 7.5 0.90/1.30 26000 140 Working Pipe 15-Aug 5643 9.80 55 21 23 8/13/0 4.7 65/44/33/24/12/8 2/0 7.0 7.0/84.0 0.25 0.90 9.2 7.5 0.80/1.40 27000 140 Waiting on Black Magic 16-Aug 5643 9.85 56 22 22 9/13/0 4.5 66/44/36/25/12/9 2/0 6.9 7.0/84.0 0.25 1.00 9.4 7.5 0.9/1.5 28000 140 Waiting on Black Magic 17-Aug 5643 9.80 55 22 23 9/13/0 4.6 67/45/36/26/13/10 2/0 7.2 7.0/83.8 0.25 0.90 9.4 7.5 1.20/1.60 28000 140 Waiting on Black Magic 18-Aug 5643 9.80 56 21 24 9/13/0 4.5 66/45/36/27/13/10 2/0 7.3 7.0/83.8 0.25 1.10 9.3 7.5 1.20/1.60 27000 140 Separate pipe and TOOH 19-Aug 5643 9.80 55 22 25 10/14/0 4.7 69/47/37/28/14/11 2/0 7.5 7.0/83.5 0.25 0.70 9.2 7.5 0.90/1.50 27000 140 Fixing Top drive 20-Aug 5643 9.80 58 22 25 10/14/0 4.7 69/47/37/28/14/11 2/0 7.5 7.0/83.5 0.25 0.70 9.2 7.5 0.90/1.50 27000 140 Work pipe and displace mud 21-Aug 5643 9.60 54 20 23 8/11/0 4.8 63/43/34/26/12/8 2/0 7.0 7.0/84.0 0.25 0.80 9.1 7.5 0.70/1.20 27000 140 Separate pipe and TOOH 22-Aug 5643 9.60 48 9 10 3/4/0 3.5 28/19/15/10/4/3 1/0 7.4 7.0/84.0 0.50 0.60 9.3 5.0 0.15/0.30 22000 40 RIH and wait to cement 23-Aug 5643 9.60 47 8 12 3/4/0 3.4 28/20/15/11/4/3 1/0 8.4 8.30/82.0 0.50 0.30 9.2 5.0 0.30/0.50 22000 40 Cement and POOH 24-Aug 1916 9.60 50 9 10 2/0/0 4.2 28/19/14/10/3/2 1/0 8.5 8.0/82.0 0.50 3.20 11.6 5.0 1.85/5.20 21000 80 Test BOPE 25-Aug 1714 9.60 63 11 21 3/6/0 3.6 43/32/24/18/5/3 1/0 8.0 8.0/82.0 0.50 1.40 10.8 5.0 0.42/2.90 28000 80 POOH 26-Aug 1714 9.55 50 11 16 3/7/0 3.6 38/27/20/15/5/3 2/0 7.1 8.0/83.0 0.50 1.50 10.8 5.0 0.20/3.60 26000 80 RIH 27-Aug 1740 9.40 42 10 12 3/5/0 4.0 32/22/18/13/4/3 1/0 6.4 8.0/84.0 0.50 0.40 9.5 5.0 0.10/3.10 21000 40 P/U BHA 28-Aug 2110 9.55 63 16 29 10/15/0 3.9 61/45/38/30/13/10 1/0 7.0 8.0/83.0 0.50 0.10 9.3 5.0 0.10/3.10 28000 60 POOH 29-Aug 2203 9.50 59 13 23 7/12/0 4.0 49/36/30/23/9/7 1/0 7.0 7.0/84.0 0.50 0.50 9.5 5.0 0.20/3.10 27000 80 Drilling 6.75" Section 30-Aug 2650 9.75 59 16 26 7/13/0 3.1 58/42/36/27/9/7 1/0 9.1 10.0/79.0 0.50 0.80 9.5 5.0 0.20/2.90 28000 80 Drilling 6.75" Section 31-Aug 3030 9.50 55 14 22 8/12/0 3.9 50/36/30/23/9/8 1/0 7.2 10.0/81.0 0.50 0.60 9.5 5.0 0.40/2.90 26000 60 Drilling 6.75" Section 1-Sep 3133 9.65 59 16 24 9/15/0 5.0 56/40/34/26/12/10 2/0 8.1 10.0/80.0 0.50 0.40 9.4 5.0 0.30/2.70 27000 40 Test BOPE 2-Sep 3245 9.55 54 15 20 7/12/0 4.0 50/35/28/20/8/7 2/0 7.2 7.0/84.0 0.50 0.30 9.5 5.0 0.40/2.20 25000 80 Drilling 6.75" Section 3-Sep 3344 9.55 56 16 21 5/9/0 3.2 53/37/29/21/7/6 1/0 5.9 8.0/84.0 0.50 0.40 9.5 5.0 0.2/2.3 28000 80 Drilling and Drilling 4-Sep 3737 9.50 51 14 19 7/12/0 4.0 47/33/27/19/8/7 1/0 4.8 7.0/86.0 0.50 0.60 9.5 5.0 0.20/2.10 29000 80 Drilling 5-Sep 3907 9.40 50 14 18 4/7/0 3.8 46/32/25/18/5/4 1/0 3.8 5.0/89.0 0.50 0.40 9.5 5.0 0.40/1.60 28000 80 Drilling/Tripping 6-Sep 3985 9.45 50 12 20 5/9/0 3.9 44/32/25/18/5/4 1/0 4.8 4.0/89.0 0.50 0.20 9.5 5.0 0.1/1.3 28000 40 Drilling/Tripping 7-Sep 4372 9.55 54 17 18 4/7/0 3.2 52/32/28/19/5/4 1/0 3.9 5.0/89.0 0.40 0.70 9.5 5.0 0.30/1.40 27000 40 Drilling/Reaming 8-Sep 4372 9.40 53 18 22 6/10/0 3.5 58/40/32/22/7/6 1/0 4.8 5.0/88.0 0.50 0.50 9.2 5.0 0.60/1.70 29000 40 Tripping/BOP Testing 9-Sep 4372 9.45 50 20 25 7/11/0 3.6 65/45/36/26/7/6 1/0 4.8 5.0/88.0 0.50 0.60 9.3 5.0 0.50/1.90 29000 40 Rig Repair 10-Sep 4372 9.40 50 16 21 6/10/0 3.9 53/37/30/21/6/5 1/0 5.9 5.0/87.0 0.50 0.60 9.6 5.0 0.50/1.70 28000 40 Rig Repair 11-Sep 4577 9.40 54 20 28 8/13/0 3.7 68/48/39/27/9/7 1/0 4.0 4.0/90.0 0.50 0.40 9.0 5.0 0.1/2.0 26000 40 Drilling 6.75" Section 12-Sep 4879 9.45 53 20 27 7/11/0 3.2 67/47/38/27/8/6 1/0 5.8 4.0/88.0 0.50 0.70 9.6 5.0 0.40/2.60 29000 80 Drilling 6.75" Section 13-Sep 5043 9.45 55 20 27 7/10/0 3.2 67/47/38/26/8/6 1/0 3.7 5.0/89.0 0.50 0.70 9.5 5.0 0.40/2.50 29000 80 Drilling 6.75" Section 14-Sep 5253 9.50 55 18 24 6/9/0 3.6 60/42/33/23/7/5 1/0 4.9 5.0/88.0 0.50 0.50 9.2 5.0 0.30/2.00 28000 80 BROOH 15-Sep 5253 9.70 59 21 25 7/13/0 4.0 67/46/37/26/9/7 1/0 4.9 5.0/88.0 1.00 0.50 9.5 5.0 0.70/2.10 27000 80 Cond mud/Circ 16-Sep 5253 9.70 60 21 27 8/12/0 4.9 69/48/39/28/9/7 1/0 5.6 5.0/88.0 0.75 0.60 9.0 5.0 0.20/1.90 28000 80 BROOH 17-Sep 5253 9.75 62 23 27 6/10/0 3.2 73/50/40/28/7/6 1/0 5.8 5.0/87.0 0.75 0.60 9.5 5.0 0.40/2.00 29000 120 Test BOPE 18-Sep 5253 9.65 59 20 29 10/15/0 4.6 69/49/40/30/11/9 1/0 4.8 4.0/89.0 0.50 0.10 9.0 5.0 0.10/1.50 28000 160 RIH 19-Sep 5273 9.75 73 15 26 8/13/0 4.0 56/41/34/26/10/7 1/0 8.0 5.0/85.0 1.00 0.60 9.5 7.5 0.60/3.40 27000 160 Drilling 6.75" Section 20-Sep 5531 9.70 48 12 18 5/6/0 4.0 42/30/24/17/5/4 1/0 8.0 4.0/86.0 0.50 0.90 9.5 7.5 0.50/3.00 27000 40 Drilling 6.75" Section 21-Sep 5715 9.75 46 14 20 5/6/0 4.4 48/34/27/19/6/5 1/0 8.9 5.0/84.0 0.50 0.70 9.6 7.5 0.50/3.40 28000 80 Waiting for fishing hands 22-Sep 5715 9.75 53 11 19 6/7/0 4.4 41/30/22/18/6/5 1/0 8.0 5.0/85.0 0.50 0.60 9.4 7.5 0.50/3.10 27000 80 Taking Survey 23-Sep 5715 9.80 57 13 20 6/8/0 4.8 46/33/27/20/6/5 1/0 7.9 4.0/86.0 0.50 0.60 9.4 7.5 0.30/3.40 28000 80 Repairing Top Drive 24-Sep 5715 9.80 58 14 22 6/10/0 4.8 50/36/27/19/7/5 1/0 9.0 4.0/85.0 0.50 0.30 9.3 5.0 0.50/3.40 27000 80 Testing BOP's 25-Sep 5715 9.75 56 12 21 5/7/0 4.8 45/33/26/20/6/5 1/0 9.1 4.0/85.0 0.50 0.30 9.2 5.0 0.30/3.20 26000 80 Prepare to pump Black Magic pill 26-Sep 5715 9.75 60 12 19 6/9/0 5.0 43/31/26/19/6/4 1/0 9.0 5.0/84.0 0.50 0.15 9.0 5.0 0.20/3.00 27000 80 Wait on spotting fluid 27-Sep 5715 9.75 62 11 19 6/9/0 4.8 41/30/24/17/7/5 1/0 9.1 5.0/84.0 0.50 0.10 9.0 5.0 0.15/3.00 26000 80 Rig Repair 28-Sep 5715 9.75 60 11 19 6/8/0 4.6 41/30/24/20/7/5 1/0 9.1 6.0/83.0 0.50 0.10 9.1 5.0 0.20/2.90 26000 80 Wait on spotting fluid Remarks W a t e r a n d O i l B a s e d M u d R e c o r d Date Depth Wt Vis PV YP Gels Filt R600/R300/R200/R100/ R6/R3 Cake Solids Oil/Water Sd Pm pH MBT Pf/Mf Chlor Hard ft - MD ppg sec lb/100 lb/100ft2 m/30m Rheometer 32nds %%%ppb Eqv mg/l Ca++ 29-Sep 5715 9.75 61 14 31 10/18/0 3.6 59/45/40/34/14/9 1/0 9.2 8.0/81.0 0.50 0.80 9.9 5.0 0.90/3.60 25000 120 Waiting on Orders 30-Sep 5715 9.70 58 11 19 5/8/0 3.8 41/30/24/19/7/4 1/0 9.2 8.0/81.0 0.50 0.60 9.8 -0.40/4.10 25000 80 Wait on Cement 1-Oct 5715 9.80 60 14 19 6/10/0 4.8 47/33/27/22/8/5 1/0 9.3 8.0/81.0 0.50 1.60 10.1 -1.20/3.90 24000 120 Wait on Cement 2-Oct 5715 9.90 61 18 20 7/11/0 5.6 56/38/31/26/7/5 1/0 13.3 6.0/79.0 1.00 2.40 10.8 5.0 1.40/4.10 24000 120 Wait on Cement 3-Oct 5715 10.00 28 15 18 6/10/0 5.6 48/33/28/24/8/5 1/0 11.4 6.0/81.0 1.00 1.80 10.1 -1.90/4.00 22000 120 Wait on Cement 4-Oct 5715 -----------------Tag cement @ 1568' MD Casing Record Remarks 7" Casing @ 1998' MD, 1958'TVD W a t e r a n d O i l B a s e d M u d R e c o r d Olson Creek #1 & Olson Creek #1-PB1 BHA#SDL RUN #Bit #Bit Type Bit Size Depth In Depth Out Footage Bit Hours TFA AVG ROP WOB (max) RPM (max) SPP (max) FLOW GPM (max)Bit Grade Comments 1 100 1 BHC / MX1 9.875 175 2049 1874 75.20 0.739 24.9 6 84 660 81 -Hole Opener 2 200 2 PDC SKF513M-B1C ReedHycalog 6.75 2049 4697 2648 107.81 0.464 24.6 28.4 109 2407 346 0-0-NO-A-X-I-RR-WO Cleanout cement, drill ahead, POOH due to washout 3 300 2RR PDC SKF513M-B1C ReedHycalog 6.75 4697 4697 0 0.00 0.464 0.0 ----0-0-NO-A-X-I-RR-HP Stuck while TIH 4 400 2RR2 PDC SKF513M-B1C ReedHycalog 6.75 4697 5643 946 20.02 0.464 20.0 22.6 90 2438 342 LIH Lost in hole 5 470 Mill 1 Olgoonik Mill Bit 6.75 1699 1714 15 8.25 -1.8 -----Milling BHA 6 500 3 PDC SKF513M-B1C ReedHycalog 6.75 1714 1714 0 0.00 0.464 0.0 0 0 0 0 0-4-BT-S-X-I-CT-HP Cleanout Run 7 600 Mill 1RR Olgoonik Mill Bit 6.75 1714 1740 26 3.00 -8.7 0 86 800 300 -Kick off 1714' MD 8 700 4 STX-1 Hughes Tricone 6.75 1740 2109 369 12.05 0.451 30.6 10 84 1450 300 0-0-NO-A-E-I-PN-BHA Used to begin Olson #1A 9 800 5 PDC SKF513M-B1C ReedHycalog 6.75 2109 3344 1235 54.75 0.451 22.6 15 92 1450 290 1-3-CT-X-GI-BT-PP POOH due to pressure loss 10 900 6 PDC DS69 ReedHycalog 6.75 3344 5253 1909 70.95 0.464 26.9 22 88 2600 340 1-1-RR-A-X-I-RR-RIG POOH to repair top drive 11 1000 6RR1 PDC DS69 Reed Hycalog 6.75 5253 5715 462 -0.464 27.7 9.9 86 2414 365 LIH Twist-off and Lost in hole Alaska RIG:Miller Rig 34 SPUD:25-Jun-2013 WELL NAME:LOCATION:West Side-Cook Inlet OPERATOR:Cook Inlet Energy AREA:Kenai Peninsula Borough MUD CO: SPERRY JOB:AK-XX-0900491711 TD:21-Sep-2013 Broid STATE: B i t R e c o r d . . * 24 hr Recap: (max)(current) 0 0 Cly 0 Set AtSize Grade 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji 0 0 211 122 Units* Casing Summary Lithology (%) 0 MBT 0' pH 0.739 0 0 0 Siltst SPP (psi) Gallons/stroke TFABit Type Depth 45 C-5n 20.0 C-2 0 in 0Minimum Depth Time: Fixed mud pump problems, tagged bottom and commenced drilling. Geological sample collection yet to start (starts at 300') 0 0' 222' 222' Max @ ft Current Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Flow In (spm) Gas Summary 0 0 0 (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 7 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,025.00 $32,075.00 Drilling PV 24 hr Max Weight 0 Hours C-3 00 CementChtSilt C-4i C-4n YP (lb/100ft2) 10.00 000 Spud Mud 10.0222'22 Depth in / out Mud Type Lst Type Average N/A0Background (max)Trip Avg Min Comments RPM ECD (ppg) ml/30min Tools API FL Chromatograph (ppm) WOB 100% Gas In Air=10,000 Units0Connection 0 Max gas = 0 units Avg gas = o units ConditionBit # 1 2.1 9.875 8.95 BHC/MX1 8.95 Size Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: Morning Report Report # 1 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 4.23 @ Mud Data Depth 25-Jun-2013 12:00 AM Current Pump & Flow Data: 113 Max 0 Chlorides mg/l 23000.00 Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) 0 0 Cly 0 Set AtSize Grade 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji 0 0 Units* Casing Summary Lithology (%) 0 MBT 0' pH 0.739 0 0 0 Siltst SPP (psi) Gallons/stroke TFABit Type Depth 44 C-5nC-2 0 in 0Minimum Depth Time: Drilling halted as a result of faulty mud pumps, awaiting parts for repairs. 0 222' 231' 9' Max @ ft Current Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Flow In (spm) Gas Summary 0 0 0 (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 7 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,025.00 $36,100.00 Rig repair PV 24 hr Max Weight 0 Hours C-3 00 CementChtSilt C-4i C-4n YP (lb/100ft2) 9.00 000 Spud Mud 9.0231'22 Depth in / out Mud Type Lst Type Average N/A0Background (max)Trip Avg Min Comments RPM ECD (ppg) ml/30min Tools API FL Chromatograph (ppm) WOB 100% Gas In Air=10,000 Units0Connection 0 Max gas = 0 units Avg gas = 0 units ConditionBit # 1 2.1 9.875 8.95 BHC/MX1 8.95 Size Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: Morning Report Report # 2 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 4.23 @ Mud Data Depth 26-Jun-2013 12:00 AM Current Pump & Flow Data: Max 0 Chlorides mg/l 23000.00 Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 23000.00 0 27-Jun-2013 12:00 AM Current Pump & Flow Data: Max ROP ROP (ft/hr) 4.23 @ Mud Data Depth Morning Report Report # 3 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: ConditionBit # 1 3.1 9.875 9.00 BHC/MX1 9.00 Size 100% Gas In Air=10,000 Units0Connection 0 Tools API FL Chromatograph (ppm) WOB Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max)Trip Average N/A Mud Type Lst Type Spud Mud 9.0231'21 Depth in / out YP (lb/100ft2) 9.00 000 00 CementChtSilt C-4i C-4n 24 hr Max Weight 0 Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $43,092.26 Rig repair PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 8 Gas Summary 0 0 0 (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Flow In (spm) 231' 231' 0' Max @ ft Current Date: Time: Drilling still on hold due to faulty mud pumps, awaiting repairs. 0 in 0Minimum Depth C-5nC-2 0 SPP (psi) Gallons/stroke TFABit Type Depth 45 MBT 0' pH 0.739 0 0 0 Siltst Units* Casing Summary Lithology (%) 00 0 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji Set AtSize Grade (max)(current) 0 0 Cly 0 . . * 24 hr Recap:Drilled from 231' MD to 413' MD. Cuttings have been mostly coal and sandstone. Black, brown, grey and white in Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 0 28-Jun-2013 12:00 AM Current Pump & Flow Data: 166 Max ROP ROP (ft/hr) 4.23 @ Mud Data Depth Morning Report Report # 4 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: ConditionBit # 1 3.2 9.875 9.10 BHC/MX1 9.10 Size Max gas = 5 Avg gas = 2 100% Gas In Air=10,000 Units0Connection 0 Tools API FL Chromatograph (ppm) WOB Avg Min Comments RPM ECD (ppg) ml/30min 3Background (max)Trip Average N/A Mud Type Lst 40 Type Spud Mud 8.0413'21 Depth in / out YP (lb/100ft2) 10.00 000 00 CementChtSilt C-4i C-4n 24 hr Max Weight 0 Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $47,989.68 Drilling PV Footage Mike Murray/Don Jones ShClyst 60 TuffGvlCoal cP 8 Gas Summary 0 0 0 (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Flow In (spm) 231' 413' 182' Max @ ft Current Date: Time: color. Predominantly hard, brittle, sub rounded, angular, unconsolidated and fine to coarse grained. 2 in 0Minimum Depth C-5n 95.0 C-2 5 SPP (psi) Gallons/stroke TFABit Type Depth 2.545 MBT 0' pH 0.739 0 0 0 Siltst 250 150 Units* Casing Summary Lithology (%) 00 0 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji Set AtSize Grade (max)(current) 0 0 Cly 0 . . * 24 hr Recap: Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 0 29-Jun-2013 12:00 AM Current Pump & Flow Data: Max ROP ROP (ft/hr) 4.23 @ Mud Data Depth Morning Report Report # 5 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: ConditionBit # 1 3.2 9.875 9.10 BHC/MX1 9.10 Size glauconite. Samples are sub angular to angular, poorly sorted and very fine to fine grained. hole to pump sweep and survey again. Cuttings are predominantly sandstone with moderate amount of coal and trace of a considerable quantity of lignite shards due to sloughing. Survey tool discovered upside down when survey was taken. Run into 100% Gas In Air=10,000 Units0Connection 0 Tools API FL Chromatograph (ppm) WOB Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max)Trip Average N/A Mud Type Lst 70 Type Spud Mud 8.0506'22 Depth in / out YP (lb/100ft2) 9.00 000 00 CementChtSilt C-4i C-4n 24 hr Max Weight 0 Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $52,887.10 Tripping into Hole PV Footage Mike Murray/Don Jones ShClyst 30 TuffGvlCoal cP 8 Gas Summary 0 0 0 (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Flow In (spm) 413' 506' 93' Max @ ft Current Date: Time: Ran survey which indicated a 15 degree angle. Pulling observed tight while pulling out of hole, circulated clean and noticed 0 Max gas = 0 units Avg gas = 0 units in 0Minimum Depth C-5nC-2 0 SPP (psi) Gallons/stroke TFABit Type Depth 2.545 MBT 0' pH 0.739 0 0 0 Siltst Units* Casing Summary Lithology (%) 00 0 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji Set AtSize Grade (max)(current) 0 0 Cly 0 . . * 24 hr Recap: (max)(current) 0 0 Cly 738 Set AtSize Grade 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji 20 104 37 210 240 Units* Casing Summary Lithology (%) 0 MBT 0' pH 0.739 0 0 0 Siltst SPP (psi) Gallons/stroke TFABit Type Depth 2.544 C-5n 893' 15.0 C-2 16 in 5 646'Minimum Depth Time: dominant quantity of coal noticed at 700' MD. Claystone, siltstone and glauconite trace observed. Samples are 9 506' 898' 392' Max @ ft Current 820'18.7 Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: 82.0 Flow In (gpm) Flow In (spm) Gas Summary 0 0 0 (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 9 Footage 20 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $57,784.52 Drilling PV 24 hr Max Weight 0 Hours C-3 00 CementChtSilt C-4i C-4n YP (lb/100ft2) 9.10 000 Spud Mud 8.0898'24 Depth in / out Mud Type Lst 60 Type Average N/A15Background (max)Trip Avg Min Comments RPM ECD (ppg) ml/30min Tools API FL Chromatograph (ppm) WOB 100% Gas In Air=10,000 Units0Connection 0 Max gas = 16 units Avg gas = 9 units sub angular to angular, sub rounded, poorly sorted, very fine to fine grained and non calcareous. ConditionBit # 1 4.3 9.875 9.30 BHC/MX1 9.20 Size Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: Morning Report Report # 6 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 4.23 @ Mud Data Depth 30-Jun-2013 12:00 AM Current Pump & Flow Data: 665 Max 0 Chlorides mg/l 20000.00 Took another survey at 506' MD which read 4 degrees and drilled to 898' MD. Cuttings have been sandstone with Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Drilled from 898' MD to 1192' MD. Ran a survey at 1136' MD and got a reading of 8.5 degrees angle. Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 0 1-Jul-2013 12:00 AM Current Pump & Flow Data: 667 Max ROP ROP (ft/hr) 4.23 @ Mud Data Depth Morning Report Report # 7 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: ConditionBit # 1 3.2 9.875 9.20 BHC/MX1 9.20 Size calcareous with trace of glauconite. Steady increase of gas observed. occassionally tan, unconsolidated and very fine to fine grained. They are also sub angular, sub rounded, poorly sorted, non 100% Gas In Air=10,000 Units18Connection 0 Tools API FL Chromatograph (ppm) WOB Avg Min Comments RPM ECD (ppg) ml/30min 28Background (max)Trip Average N/A Mud Type Lst 50 Type Spud Mud 8.01192'25 Depth in / out YP (lb/100ft2) 8.80 000 00 CementChtSilt C-4i C-4n 24 hr Max Weight 0 Hours C-3 50 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $62,645.94 Drilling PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 10 Gas Summary 0 0 0 (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: 88.0 Flow In (gpm) Flow In (spm) 898' 1192' 294' Max @ ft Current 1001'27.8 Date: Time: Cuttings are sandstone and claystone with abundance of coal observed at 900' MD. Samples are clear, white, light grey, green 11 Max gas = 36 units Avg gas = 11 units in 2 1077'Minimum Depth C-5n 1190' 16.0 C-2 36 SPP (psi) Gallons/stroke TFABit Type Depth 2.546 MBT 0' pH 0.739 0 0 0 Siltst 386 226 Units* Casing Summary Lithology (%) 028 0 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji Set AtSize Grade (max)(current) 0 0 Cly 2084 . . * 24 hr Recap:Drilled from 1192' MD to 1555' MD and took survey at 1464' MD which read a 14 degree angle. Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 25000.00 0 2-Jul-2013 12:00 AM Current Pump & Flow Data: 436 Max ROP ROP (ft/hr) 4.23 @ Mud Data Depth Morning Report Report # 8 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: ConditionBit # 1 7.0 9.875 9.55 BHC/MX1 9.55 Size 1200' MD and 1440' MD. Steady increase of gas noted, more often at the coal beddings. 100% Gas In Air=10,000 Units88Connection 0 Tools API FL Chromatograph (ppm) WOB Avg Min Comments RPM ECD (ppg) ml/30min 45Background (max)Trip Average N/A Mud Type Lst 50 Type Spud Mud 10.01550'37 Depth in / out YP (lb/100ft2) 9.50 000 00 CementChtSilt C-4i C-4n 24 hr Max Weight 0 Hours C-3 50 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $67,543.36 Drilling PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 16 Gas Summary 0 0 0 (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: 59.0 Flow In (gpm) Flow In (spm) 1192' 1555' 363' Max @ ft Current 1230'15.0 Date: Time: Cuttings have been predominantly sandstone and claystone. Abundance of coal with trace brown lamina observed at about 30 Max gas = 92 units Avg gas = 30 units in 13 1293'Minimum Depth C-5n 1555' 33.0 C-2 92 SPP (psi) Gallons/stroke TFABit Type Depth 5.058 MBT 0' pH 0.739 0 0 0 Siltst 352 204 Units* Casing Summary Lithology (%) 01929 665 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji Set AtSize Grade (max)(current) 0 0 Cly 8956 . . * 24 hr Recap: (max)(current) 0 0 Cly 7722 Set AtSize Grade 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji 10 3254 1079 406 234 Units* Casing Summary Lithology (%) 0 MBT 0' pH 0.739 0 0 0 Siltst SPP (psi) Gallons/stroke TFABit Type Depth 5.053 C-5n 1575' 14.0 C-2 92 in 23 1622'Minimum Depth Time: coal. Abundance of coal observed at 1555' MD, 1574' MD and 1800' MD which is also associated with gas peaks. 43 Max gas = 92 units Avg gas = 43 units 1555' 1852' 297' Max @ ft Current 1830'25.0 Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: 45.0 Flow In (gpm) Flow In (spm) Gas Summary 0 0 0 (current) Mike Murray/Don Jones ShClyst 5 TuffGvlCoal cP 13 Footage 25 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $72,440.78 Drilling PV 24 hr Max Weight 0 Hours C-3 00 CementChtSilt C-4i C-4n YP (lb/100ft2) 9.40 000 Spud Mud 10.01853'37 Depth in / out Mud Type Lst 60 Type Average N/A36Background (max)Trip Avg Min Comments RPM ECD (ppg) ml/30min Tools API FL Chromatograph (ppm) WOB 100% Gas In Air=10,000 Units71Connection 0 ConditionBit # 1 6.9 9.875 9.60 BHC/MX1 9.60 Size Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: Morning Report Report # 9 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 4.23 @ Mud Data Depth 3-Jul-2013 12:00 AM Current Pump & Flow Data: 885 Max 0 Chlorides mg/l 26000.00 Drilled from 1555' MD to 1852' MD without issues. Cuttings have been predominantly sandstone, claystone and Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) 0 0 Cly 8600 Set AtSize Grade 9074338968Unit Phone: 0 Martin Nnaji Maximum Report By:Logging Engineers:Todd Wilson/ Martin Nnaji 1840 744 365 210 Units* Casing Summary Lithology (%) 0 MBT 0' pH 0.739 0 0 0 Siltst SPP (psi) Gallons/stroke TFABit Type Depth 5.057 C-5n 1867' C-2 89 in 20 2013'Minimum Depth Time: cement. Cuttings have been coal, claystone and sandstone. With more sandstone towards TD and gas peaks at coal beddings. 30 1852' 2049' 197' Max @ ft Current 2018'7.0 Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: 46.0 Flow In (gpm) Flow In (spm) Gas Summary 0 0 0 (current) Mike Murray/Don Jones ShClyst 5 TuffGvlCoal cP 14 Footage 40 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $77,338.20 Pulling out of Hole PV 24 hr Max Weight 0 Hours C-3 00 CementChtSilt C-4i C-4n YP (lb/100ft2) 9.30 000 Spud Mud 10.02049'35 Depth in / out Mud Type Lst 55 Type Average N/ABackground (max)Trip Avg Min Comments RPM ECD (ppg) ml/30min Tools API FL Chromatograph (ppm) WOB 100% Gas In Air=10,000 Units36Connection 0 Max gas = 89 units Avg gas = 30 units ConditionBit # 1 9.1 9.875 9.80 BHC/MX1 9.80 Size Job No.: Daily Charges: Total Charges: MWD Summary 96% Rig Activity: Miller Rig 34 Report For: Morning Report Report # 10 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 4.23 @ Mud Data Depth 4-Jul-2013 12:00 AM Current Pump & Flow Data: 627 Max 0 Chlorides mg/l 25000.00 Drilled from 1852' MD to 2049' MD . TD 9.875" hole section at 2049' MD. Pulling out of hole to run casing and . Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) - - Cly - Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard - - 0 0 Units* Casing Summary Lithology (%) - MBT 0' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 5.062 C-5n N/A N/A C-2 20 Max gas = 20 units Avg gas = 10 units in 6 N/AMinimum Depth Time: of-hole to surface. Hooked up casing equipment to run casing. 10 2049' 2049' 0' Max @ ft Current N/AN/A Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 16 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $83,471.62 Run Casing and Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 9.00 --- Spud Mud 10.02049'28 Depth in / out Mud Type Lst Type Average N/A8Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools N/A API FL Chromatograph (ppm) WOB Conductor 100% Gas In Air=10,000 UnitsN/AConnection - company man. The 2 sample catchers and the night mudlogger were sent to town, and will be called out when deemed necessary by the 157' ConditionBit # 1 6.0 9.875 9.50 BHC/MX1 9.50 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 11 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 5-Jul-2013 11:59 PM Current Pump & Flow Data: 22 Max - Chlorides mg/l 25000.00 Pulled-out-of-hole. Ran a weighted sweep at about 900', and saw good returns over shakers. Continued to Pull-out- Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Finished tripping-in-hole with casing. The shoe was set at 1998' MD. The hole would not allow casing to be set any Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 25000.00 - 6-Jul-2013 11:59 PM Current Pump & Flow Data: 5 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 12 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 6.0 9.875 9.50 BHC/MX1 9.50 Size Max gas = 39 units Avg gas = 7 units up BOP. 1998' 157' 100% Gas In Air=10,000 UnitsN/AConnection - Tools N/A API FL Chromatograph (ppm) WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max)Trip Average N/A Mud Type Lst Type Spud Mud 10.02049'28 Depth in / out YP (lb/100ft2) 9.30 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $2,797.42 $86,269.04 Rig up and rig down PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 16 Gas Summary - -- (current) Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) 2049' 2049' 0' Max @ ft Current N/AN/A Date: Time: deeper. Cemented casing, and displaced with 9.5 ppg mud. Rigged down casing equipment and diverter. Proceeded to nipple 7 in 4 N/AMinimum Depth C-5n N/A N/A C-2 39 SPP (psi) Gallons/stroke TFABit Type Depth 5.059 MBT 0' pH 0.739 - - - Siltst 7.63'' 0 0 Units* Casing Summary Lithology (%) -- - 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly - . . * 24 hr Recap: (max)(current) Surface - - Cly - Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard - - 7.63'' 0 0 Units* Casing Summary Lithology (%) - MBT 0' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 5.055 C-5n N/A N/A C-2 0 in 0 N/AMinimum Depth Time: 0 2049' 2049' 0' Max @ ft Current N/AN/A Date: Avg to0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 15 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $3,697.42 $90,866.46 Rig up and rig down PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 9.20 --- Spud Mud 13.02049'28 Depth in / out Mud Type Lst Type Average N/A0Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools N/A API FL Chromatograph (ppm) WOB Conductor 100% Gas In Air=10,000 UnitsN/AConnection - Max gas = 0 units Avg gas = 0 units 1998' 157' ConditionBit # 1 6.0 9.875 9.50 BHC/MX1 9.50 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 13 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 7-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - Chlorides mg/l 25000.00 Continue to nipple up BOP in preparation for the next drilling section. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Continue to rig up and test BOP. Planning to make an open-ended trip in the hole to circulate hole volume and to Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 - 8-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 14 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Condition Bit # 1 5.2 9.875 9.35 BHC/MX1 9.35 Size Max gas = 0 units Avg gas = 0 units 1998' 157' 100% Gas In Air =10,000 Units N/A Connection - Tools N/A API FL Chromatograph (ppm) WOB Conductor N/A N/A Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max) Trip Average N/A Mud Type Lst Type Spud Mud 10.0 2049'24 Depth in / out YP (lb/100ft 2) 8.40 --- -- Cement Cht Silt C-4i C-4n 24 hr Max Weight - Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $3,697.42 $94,563.88 Rig up and rig down PV Footage Mike Murray/Don Jones Sh Clyst Tuff Gvl Coal cP 12 Gas Summary - -- (current) Avg to 0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) 2049' 2049' 0' Max @ ft Current N/A N/A Date: Time: determine if mud is adequate for drilling cement. 0 in 0 N/A Minimum Depth C-5n N/A N/A C-2 0 SPP (psi) Gallons/stroke TFA Bit Type Depth 7.5 50 MBT 0' pH 0.739 - - - Siltst 7.63'' 0 0 Units* Casing Summary Lithology (%) -- - 9074338968 Unit Phone: - Andrew Bongard Maximum Report By: Logging Engineers: Andrew Bongard Set At Size 45.5 Grade 10.75'' (max) (current) Surface - - Cly - . . * 24 hr Recap: (max) (current) Surface - - Cly - Set At Size 45.5 Grade 10.75'' 9074338968 Unit Phone: - Andrew Bongard Maximum Report By: Logging Engineers: Andrew Bongard - - 7.63'' 0 0 Units* Casing Summary Lithology (%) - MBT 0' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFA Bit Type Depth 7.5 55 C-5n N/A N/A C-2 0 in 0 N/A Minimum Depth Time: clean of the mud that has been sitting in the hole for a few days. Circulate and condition mud for drilling out the cement. Begin to 0 2049' 1890' -159' Max @ ft Current N/A N/A Date: Avg to 0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones Sh Clyst Tuff Gvl Coal cP 12 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $3,372.42 $97,286.30 POOH PV 24 hr Max Weight - Hours C-3 -- Cement Cht Silt C-4i C-4n YP (lb/100ft 2) 8.40 --- Spud Mud 10.0 2049'26 Depth in / out Mud Type Lst Type Average N/A 0Background (max) Trip N/A N/A Avg Min Comments RPM ECD (ppg) ml/30min Tools N/A API FL Chromatograph (ppm) WOB Conductor 100% Gas In Air =10,000 Units N/A Connection - Max gas = 0 units Avg gas = 0 units pull-out-of-hole. 1998' 157' Condition Bit # 1 4.2 9.875 9.20 BHC/MX1 9.20 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 15 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 9-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - Chlorides mg/l 22000.00 Trip-in-hole with open-ended drill pipe. Tag cement at 1890' MD. Pull off bottom to 1850' MD, and circulate the hole Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Finish pulling-out-of-hole with open ended run. Work on mud pumps and test BOP. Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 - 10-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 16 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 4.2 9.875 9.20 BHC/MX1 9.20 Size Max gas = 0 units Avg gas = 0 units 1998' 157' 100% Gas In Air=10,000 UnitsN/AConnection - Tools N/A API FL Chromatograph (ppm) WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max) Trip Average N/A Mud Type Lst Type Spud Mud 10.02049'22 Depth in / out YP (lb/100ft2) 8.50 --- -- CementCht Silt C-4i C-4n 24 hr Max Weight - Hours C-3 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $3,372.42 $100,658.72 Repair Rig PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 13 Gas Summary - -- (current) Avg to 0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) 1890' 1890' 0' Max @ ft Current N/AN/A Date: Time: 0 in 0 N/AMinimum Depth C-5n N/A N/A C-2 0 SPP (psi) Gallons/stroke TFABit Type Depth 7.555 MBT 0' pH 0.739 - - - Siltst 7.63'' 0 0 Units* Casing Summary Lithology (%) -- - 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly - . . * 24 hr Recap: (max) (current) Surface - - Cly - Set At Size 45.5 Grade 10.75'' 9074338968 Unit Phone: - Andrew Bongard Maximum Report By: Logging Engineers: Andrew Bongard - - 7.63'' 0 0 Units* Casing Summary Lithology (%) - MBT 0' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFA Bit Type Depth 7.5 53 C-5n N/A N/A C-2 0 in 0 N/A Minimum Depth Time: tools. 0 1890' 1890' 0' Max @ ft Current N/A N/A Date: Avg to 0' Yesterday's Depth: Current Depth: 24 Hour Progress: N/A Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones Sh Clyst Tuff Gvl Coal cP 12 Footage Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $3,372.42 $104,031.14 TIH PV 24 hr Max Weight - Hours C-3 -- Cement Cht Silt C-4i C-4n YP (lb/100ft 2) 8.40 --- Spud Mud 10.0 2049'22 Depth in / out Mud Type Lst Type Average N/A 0Background (max) Trip N/A N/A Avg Min Comments RPM ECD (ppg) ml/30min Tools N/A API FL Chromatograph (ppm) WOB Conductor 100% Gas In Air =10,000 Units N/A Connection - Max gas = 0 units Avg gas = 0 units 1998' 157' Condition Bit # 1 4.2 9.875 9.15 BHC/MX1 9.10 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 17 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 11-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - Chlorides mg/l 22000.00 Finished testing BOP. Pick-up BHA to run-in-hole to drill out cement. Circulate old mud from down hole to test MWD Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Continue to TIH with drill out assembly, tag cement and drill to 2069' MD. Perfrom FIT. Totco Data exchange down Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 - 11-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 18 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 4.2 9.875 9.20 BHC/MX1 9.20 Size Max gas = 40 units Avg gas = 18 units system at 23.00. 1998' 157' 100% Gas In Air=10,000 Units24Connection - Tools DM/DC API FL Chromatograph (ppm) WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 0Background (max)Trip Average 40 Mud Type Lst 20 Type Spud Mud 10.02049'22 Depth in / out YP (lb/100ft2) 8.40 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 50 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $108,928.56 Drilling Cement PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 12 30 Gas Summary - -- (current) Avg to2049' Yesterday's Depth: Current Depth: 24 Hour Progress: 22.0 Flow In (gpm) Flow In (spm) 2069' 2069' 0' Max @ ft Current 2061'14.0 Date: Time: from 2062' MD to 2069' MD, no data recorded by SDL engineers. Attempt to Repair Totco Connection, begin repairs on rig brake 18 in 10 2049'Minimum Depth C-5n 2061' 0.0 C-2 40 SPP (psi) Gallons/stroke TFABit Type Depth 7.553 MBT 2069' pH 0.739 - - - Siltst 7.63'' 0 0 Units* Casing Summary Lithology (%) -1769 1021 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly 3844 . . * 24 hr Recap:Complete repair of rig break system, continue to drill from 2069' to 2200' MD at midnight, 112 U Max gas seen at Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 - 13-Jul-2013 11:59 PM Current Pump & Flow Data: 1107 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 19 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 4.2 9.875 9.50 BHC/MX1 9.50 Size Max gas = 112 units Avg gas = 28 units only an estimate. observed but no visible increase with depth. There maybe a thicker coal bed at 2234' TVD based off the Correlation logs but this is 1998' 157' 100% Gas In Air=10,000 Units36Connection - Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 5Background (max)Trip Average 0 Mud Type Lst Type WBM 10.02049'22 Depth in / out YP (lb/100ft2) 8.40 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 60 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $113,825.98 Drilling Cement PV Footage Mike Murray/Don Jones ShClyst 20 TuffGvlCoal cP 12 Gas Summary - -- (current) Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 150.0 Flow In (gpm) Flow In (spm) 2069' 2200' 131' Max @ ft Current 2119'7.0 Date: Time: 2121' MD associated with a 100% Coal sample. Minimal other coal samples observed through out. 1 Connection gas of 40 Units 28 in 5 2049'Minimum Depth C-5n 2121' 83.0 C-2 112 SPP (psi) Gallons/stroke TFABit Type Depth 7.553 MBT 2200' pH 0.739 - - - Siltst 7.63'' 228 120 Units* Casing Summary Lithology (%) -2856 523 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly 13471 . . * 24 hr Recap: (max)(current) Surface - - Cly 13193 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 121 121 7.63'' 240 125 Units* Casing Summary Lithology (%) - MBT 2561' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 7.553 C-5n 2541' 23.0 C-2 114 in 10 220'Minimum Depth Time: peak of 114 Units noted at 2541'. All these intervals are associated with high percentages of coal in cuttings samples. Background 25 2200' 2561' 361' Max @ ft Current 2362'15.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 65.0 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones ShClyst 20 TuffGvlCoal cP 12 Footage 60 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $118,732.40 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 8.40 --- WBM 10.02049'22 Depth in / out Mud Type Lst 20 Type Average 016Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units28Connection - Max gas = 114 units Avg gas = 25 units minimal gas, a thicker bed is expected around 2800' TVD estimated. gas has risen from 10 to 16 units, with very little visible connection gas being seen. Coal beds should continue to be thin with 1998' 157' ConditionBit # 1 4.2 9.875 9.50 BHC/MX1 9.50 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 20 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 13-Jul-2013 11:59 PM Current Pump & Flow Data: 1276 Max - Chlorides mg/l 22000.00 Continue to drill from 2200' to 2561' MD, Gas peaks of 30 to 65 units noted at irregular intervals with one large gas Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) Surface - - Cly 8935 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 1963 184 7.63'' 259 135 Units* Casing Summary Lithology (%) - MBT 2825' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 7.553 C-5n 2814' 12.0 C-2 87 in 12 2559'Minimum Depth Time: peak of 87 Units noted at 2814'. All these intervals are associated with high percentages of coal in cuttings samples. Background 23 2561' 2825' 264' Max @ ft Current 2689'16.6 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 128.6 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones ShClyst 30 TuffGvlCoal cP 12 Footage 50 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $123,620.82 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 8.40 --- WBM 10.02049'22 Depth in / out Mud Type Lst 20 Type Average 015Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units25Connection - Max gas = 87 units Avg gas = 23 units gas, coal beds are expected at 2916' MD, based on current inclinations. gas has stayed constant at 15 - 20 units, still low connection gas being seen. Coal beds should continue to be thin with minimal 1998' 157' ConditionBit # 1 4.2 9.875 9.50 BHC/MX1 9.50 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 21 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 15-Jul-2013 11:59 PM Current Pump & Flow Data: 1510 Max - Chlorides mg/l 22000.00 Continue to drill from 2561' to 2825' MD, Gas peaks of 30 to 65 units noted at irregular intervals with one large gas Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) Surface - - Cly 3942 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 2231 1021 7.63'' 253 133 Units* Casing Summary Lithology (%) - MBT 2951' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 7.553 C-5n 2885' 3.0 C-2 38 in 10 2559'Minimum Depth Time: minimal return increase seen after sweep. Circulate bottoms up when back on bottom 90 Units of trip gas seen. Continue to drill to 21 Max gas = 87 units Avg gas = 23 units Trip Gas = 90 units 2825' 2951' 126' Max @ ft Current 2870'10.5 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 38.9 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Don Jones ShClyst TuffGvlCoal cP 12 Footage 70 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $128,518.24 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 8.40 --- WBM 10.02049'22 Depth in / out Mud Type Lst 30 Type Average 9010Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units12Connection - there is the possibility of a coal bed of over 30' at around 4082' MD. These are all estimated depths. checked during the short trip. There will be several coal beds between 3100'-3200', 3600' - 3650', and between 3850' and 4100' 2951' MD at midnight. Low background and drilling gas is still being encountered. All gas equipment was re calibrated and 1998' 157' ConditionBit # 1 4.2 9.875 9.50 BHC/MX1 9.50 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 22 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 16-Jul-2013 11:59 PM Current Pump & Flow Data: 1449 Max - Chlorides mg/l 22000.00 Continue to drill from 2825' to 2914' MD, Short trip to casing shoe to clean hole. Pump lube and a sweep at bottom Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Continue to drill from 2825' to 3305' MD, Increase in avg ROP to 20' per hour. Small gas peasks between 2825 ' and Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 22000.00 - 17-Jul-2013 11:59 PM Current Pump & Flow Data: 1588 Max ROP ROP (ft/hr) 1.92 @ Mud Data Depth Morning Report Report # 23 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 4.2 9.875 9.60 BHC/MX1 9.60 Size 3300' MD. Background gas in this section rose to 62 units. 1998' 157' 100% Gas In Air=10,000 Units12Connection - Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 34Background (max)Trip Average - Mud Type Lst 30 Type WBM 10.02049'22 Depth in / out YP (lb/100ft2) 8.40 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 70 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $133,415.66 Drilling Cement PV Footage Mike Murray/Don Jones ShClyst TuffGvlCoal cP 12 Gas Summary - -- (current) Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 86.0 Flow In (gpm) Flow In (spm) 2825' 3305' 480' Max @ ft Current 3275'20.0 Date: Time: 3279' MD, gas peak of 161 units seen at 3290' MD, associated with 100% coal in samples. A second peak of 110 Units seen at 30 Max gas = 161 units Avg gas = 30 units in 5 2559'Minimum Depth C-5n 3290' 39.0 C-2 161 SPP (psi) Gallons/stroke TFABit Type Depth 7.555 MBT 2951' pH 0.739 - - - Siltst 7.63'' 251 130 Units* Casing Summary Lithology (%) -3035 528 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly 20366 . . * 24 hr Recap: (max)(current) Surface - - Cly 26970 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 5175 137 7.63'' 124 123 Units* Casing Summary Lithology (%) - MBT 3755' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 7.555 C-5n 3478' 0.0 C-2 226 in 13 3305'Minimum Depth Time: GP of 226 units, and 3720' MD of 164 units. Both of these were associated with coal beds. Background gas has increased to 51 51 Max gas = 226 units Avg gas = 51 units 3305' 3755' 450' Max @ ft Current 3534'18.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 62.0 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Todd ShClyst TuffGvlCoal cP 12 Footage 70 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $138,313.08 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 8.40 --- WBM 10.02049'22 Depth in / out Mud Type Lst 30 Type Average -10Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units43Connection - units. Connection gas of 43 units has been seen, but there is no great increase in this number. 1998' 157' ConditionBit # 1 4.8 9.875 9.70 BHC/MX1 9.70 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 24 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.92 @ Mud Data Depth 18-Jul-2013 11:59 PM Current Pump & Flow Data: 1477 Max - Chlorides mg/l 23000.00 Continue to drill from 3305' to 3755' MD, Increase in avg ROP to 18' per hour. Large gas peaks seen at 3562' MD Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: (max)(current) Surface - - Cly 258 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 152 0 7.63'' 0 0 Units* Casing Summary Lithology (%) - MBT 3755' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 7.552 C-5n 0' 0.0 C-2 25 in 0 0'Minimum Depth Time: Minimal gas seen on trip out. Change pump liners to 4.5". 1.55 gps. 15 Max gas = 25 units Avg gas = 15 units 3755' 3755' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Todd ShClyst TuffGvlCoal cP 24 Footage 70 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $143,210.50 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 9.30 --- WBM 4.83755'19 Depth in / out Mud Type Lst 30 Type Average -0Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units0Connection - 1998' 157' ConditionBit # 1 4.8 9.875 9.60 BHC/MX1 9.60 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 25 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.55 @ Mud Data Depth 19-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - Chlorides mg/l 24000.00 Begin tripping out of hole to shoe. Hang off pipe. BOP test. Begin tripping back in hole. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Continue to TIH, Circulate bottoms up, 142 units of gas seen. Condition mud due to high mud weight, continue to Density (ppg) out (sec/qt) Viscosity Cor Solids % Chlorides mg/l 24000.00 - 20-Jul-2013 11:59 PM Current Pump & Flow Data: 1981 Max ROP ROP (ft/hr) 1.55 @ Mud Data Depth Morning Report Report # 26 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 4.8 9.875 9.60 BHC/MX1 9.60 Size Mud data from 07/20/2013. with coal. 1998' 157' 100% Gas In Air=10,000 Units0Connection - Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 33Background (max)Trip Average 148 Mud Type Lst 30 Type WBM 4.83755'19 Depth in / out YP (lb/100ft2) 9.30 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 60 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $148,107.02 Drilling Cement PV Footage Mike Murray/Todd ShClyst 10 TuffGvlCoal cP 24 Gas Summary - -- (current) Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 106.0 Flow In (gpm) Flow In (spm) 3755' 3798' 43' Max @ ft Current 3792'60.0 Date: Time: circulate, shakers blinded off ciruclate till 22:30. Continue drilling to 3798' MD. Large gas peak 370 units at 3786' MD. Associated 59 Max gas = 375 units Avg gas = 59 units in 0 0'Minimum Depth C-5n 3786' 17.0 C-2 375 SPP (psi) Gallons/stroke TFABit Type Depth 7.552 MBT 3755' pH 0.739 - - - Siltst 7.63'' 308 255 Units* Casing Summary Lithology (%) -603 0 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly 38426 . . * 24 hr Recap: (max)(current) Surface 10 - Cly 75793 Set AtSize 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos 9762 448 7.63'' 308 199 Units* Casing Summary Lithology (%) - MBT 3755' pH 0.739 - - - Siltst SPP (psi) Gallons/stroke TFABit Type Depth 2.546 C-5n 4375' 63.2 C-2 627 in 3 3798'Minimum Depth Time: was seen at 4375' MD. Associated with a Coal/Sand layer. Other peaks of between 400 units to 500 units has been seen. Cuttings 97 this may increase between 4650' and 4750' with several thicker coal beds. There are no offset logs with TVD's deeper than 5500'. Mud data from 07/21/2013. 3798' 4495' 697' Max @ ft Current 4399'29.1 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 184.0 Flow In (gpm) Flow In (spm) Gas Summary - -- (current) Mike Murray/Todd ShClyst 10 TuffGvlCoal cP 16 Footage 60 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $153,005.34 Drilling Cement PV 24 hr Max Weight - Hours C-3 -- CementChtSilt C-4i C-4n YP (lb/100ft2) 9.00 --- WBM 4.53798'18 Depth in / out Mud Type Lst 30 Type Average 14833Background (max)Trip N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor 100% Gas In Air=10,000 Units133Connection - Max gas = 627 units Avg gas = 97 units connection gas peak of 133 U at 4358' MD. The coal layers should decrease between 4500' and 4650' with only a few coal beds, day upto 5" in length with an average size of 2-3". Connection gas has been relative to the surrounding formation, with a max have predominantly been Coal, Sandstone and Claystone in varying percentages. Large Caving's have been noted throughout the 1998' 157' ConditionBit # 1 5.2 9.875 9.55 BHC/MX1 9.55 Size Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: Morning Report Report # 27 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough ROP ROP (ft/hr) 1.55 @ Mud Data Depth 21-Jul-2013 11:59 PM Current Pump & Flow Data: 2200 Max - Chlorides mg/l 22000.00 Continue to drill from 3798' to 4495' MD, background gas increased from 50 units to 97 units. A gas peak of 627 U Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 313 units Avg gas = 105 units Continue to drill from 4495' to 4697' MD, background gas increased from 97 units to 105 units. A gas peak of 313 U Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 22000.00 - 22-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max ROP ROP (ft/hr) 1.55 @ Mud Data Depth Chlorides Morning Report Report # 28 Customer: Well: Area: Location: Rig: Olson #1 Cook Inlet Energy Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: MWD Summary 97% Rig Activity: N/A Miller Rig 34 Report For: ConditionBit # 1 5.2 9.875 9.60 BHC/MX1 9.60 Size Mud data from 07/22/2013. Spike in SPP at 4697' MD, SPP pressure increase of 400-500 psi, begin to loose SPP. Circulate to establish problems. Begin to caving's still be noted on shakers, 3/4". have predominantly been Coal, Sandstone and Claystone in varying percentages. Predominantly Claystone layers. Large coal 1998' 157' 100% Gas In Air=10,000 Units152Connection - Tools DM/DC API FL Chromatograph (ppm) 2049' WOB Conductor N/AN/A Avg Min Comments RPM ECD (ppg) ml/30min 61Background (max)Trip Average 1058 Mud Type Lst 20 Type WBM 4.53798'18 Depth in / out YP (lb/100ft2) 9.00 --- -- CementChtSilt C-4i C-4n 24 hr Max Weight - Hours C-3 80 Ss (ppb Eq) C-1 C-5i AK-AM-0900491711 $4,897.42 $157,902.76 Drilling Cement PV Footage Mike Murray/Todd ShClyst TuffGvlCoal cP 16 Gas Summary - -- (current) Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 149.0 Flow In (gpm) Flow In (spm) 4495' 4697' 202' Max @ ft Current 4399'8.4 Date: Time: was seen at 4668' MD. Associated with a Sand layer. Other peaks of between 200 units and 300 units also seen. Cuttings 105 pull out of hole to, 4252' MD. Hang up and stick pipe. Begin working pipe to free. Circulate sweep and have a large increase in and continue pulling out of hole. cuttings. Circulating gas peak of 1058 units associated with an increase in large coal cuttings. Free pipe around 22:00 hours in 29 4540'Minimum Depth C-5n 4668' 0.0 C-2 313 SPP (psi) Gallons/stroke TFABit Type Depth 2.546 MBT 4697' pH 0.739 - - - Siltst 7.63'' 0 0 Units* Casing Summary Lithology (%) -1095 294 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Set AtSize 45.5 Grade 10.75'' (max)(current) Surface - - Cly 33021 . . * 24 hr Recap: Max gas = 10 units Avg gas = 0 units Continue to trip out of hole. Finish pulling out of hole, discover wash out on last stand of drill pipe before BHA. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 24000.00 - 24-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Morning Report Report # 29 Customer: Well: Area: Location: Rig: Olson #1 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Mike Murray/Todd Jessen Flow In (spm) Time: Bit # 1 5.1 9.875 9.55 BHC/MX1 9.55 Size Mud data from 07/23/2013. 1998' 157' 100% Gas In Air=10,000 Units-Connection - Chromatograph (ppm) 2049' WOB Condition Conductor N/AN/A Avg Min Comments 4.9 9.50 cP RPM ECD (ppg) ml/30min - WBM Background (max)Trip (max) Average 10 Mud Type Lst Type 4697'18 Depth in / out YP (lb/100ft2) --- -- CementChtSilt C-4i C-4n Weight - Hours C-3 Footage AK-AM-0900491711 $4,897.42 $167,697.60 Drilling Cement PV Tools DM/DC API FL Cook Inlet Energy ShClyst TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Break down MWD tools and lay down. Rig service and begin to rig up new BHA. - in --Minimum Depth C-5n - 0.0 C-2 - TFABit Type Depth 5.046 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 13 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' (current) Surface - - Cly - Ss . . * 24 hr Recap: Max gas = 10 units Avg gas = 0 units Continue to trip out of hole. Finish pulling out of hole, discover wash out on last stand of drill pipe before BHA. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 24000.00 - 24-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 30 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy 18 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 100% Gas In Air Bit # 1 5.1 9.875 9.55 BHC/MX1 9.55 Size 4697' Mud data from 07/23/2013. 1998' 157' =10,000 Units-Connection - 2049' WOB Condition Conductor N/A Avg Min Comments 4.9 9.50 cP RPM ml/30min - WBM Background Chromatograph (ppm) (max)Trip (max)(current) Average 10 Mud Type Lst Type Depth in / out YP (lb/100ft2) --- -- CementChtSilt C-4i C-4n Weight - Hours C-3 Footage $4,897.42 $167,697.60 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) ShClyst TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Break down MWD tools and lay down. Rig service and begin to rig up new BHA. - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 5.046 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 13 Surface - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 457 units Avg gas = 0 units Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos -- - 7.63'' 248 161 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 13 Surface - Bit Type Depth 5.046 (ppb Eq) MBT 4697' - 0.0 C-2 - in --Minimum Depth C-5n Reach 3790' and encounter tight spot, unable to work pipe up or down. Begin jaring. Try to work pipe. - 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i ShClyst TuffGvlCoal $4,897.42 $172,595.02 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) Weight - Hours C-3 Footage CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)Mud Type Lst Type Average 457 (max)Trip (max)(current) ml/30min - WBM Background Chromatograph (ppm) N/A Avg Min Comments 4.9 9.50 cP RPM 2049' WOB Condition Conductor Depth in / out =10,000 Units-Connection - Small amounts of H2S detected during circulation. Less than 5 ppm. Gas 457 Units max. 1998' 157' 100% Gas In Air Bit # 1 5.1 9.875 9.50 BHC/MX1 9.50 Size 4697'18 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 31 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 25-Jul-2013 11:59 PM Current Pump & Flow Data: 1436 Max - mg/l 24000.00 Begin Testing BOP's. Complete BOP test and pick up new BHA. Begin to trip in hole. Rotate through any tight spots. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 182 units Avg gas = 0 units Continue to attempt to free pipe. So far unable to work stuck pipe. Circulation still established. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 26-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 32 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 4.8 9.875 9.50 BHC/MX1 9.50 Size 4697'18 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.9 9.20 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) - Average 182 Mud Type Lst Type YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n Weight - Hours C-3 Footage $4,897.42 $177,492.42 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) ShClyst TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Pump Black Magic pill at 16:10 and allow to sit. - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 7.552 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 24 Surface - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos -- - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 24 Surface - Bit Type Depth 7.552 (ppb Eq) MBT 4697' - 0.0 C-2 - in --Minimum Depth C-5n - 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $182,389.86 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) - WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.9 9.20 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 1998' 157' 100% Gas In Air Bit # 1 4.8 9.875 9.50 BHC/MX1 9.50 Size 4697'18 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 33 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 27-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - mg/l 28000.00 Continue to wait on Black Magic pill, pump to move Black magic to shoe. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Wait on Black Magic Pill. Pump further 70 bbl Black Magic pill at 21:30, begin to wait for 48 hrs for pill to sit. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 28-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 34 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 4.8 9.875 9.50 BHC/MX1 9.50 Size 4697'18 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.9 9.20 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) - Average 182 Mud Type Lst Type Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $187,287.28 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 7.552 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 24 Surface - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos -- - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 25 Surface - Bit Type Depth 7.5690 (ppb Eq) MBT 4697' - 0.0 C-2 - in --Minimum Depth C-5n - 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $192,184.70 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) - WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.5 9.00 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 1998' 157' 100% Gas In Air Bit # 1 5.3 9.875 9.50 BHC/MX1 9.50 Size 4697'17 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 35 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 29-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - mg/l 28000.00 Wait on Black Magic Pill. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Wait on Black Magic Pill. Trip in hole with Wireline and Free point tool. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 30-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 36 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 5.3 9.875 9.50 BHC/MX1 9.50 Size 4697'17 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.5 9.00 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) - Average - Mud Type Lst Type Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $196,182.12 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 7.5690 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 25 Surface - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos -- - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 25 Surface - Bit Type Depth 7.560 (ppb Eq) MBT 4697' - 0.0 C-2 - in --Minimum Depth C-5n lay down. BOP test and rig maintenance. - 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $200,179.54 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) - WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.5 9.00 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 1998' 157' 100% Gas In Air Bit # 1 5.3 9.875 9.50 BHC/MX1 9.50 Size 4697'17 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 37 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 31-Jul-2013 11:59 PM Current Pump & Flow Data: 0 Max - mg/l 28000.00 Use free point tool to separate pipe at 1980' MD, leaving 1922' of fish in the hole. Pull free pipe out of the hole and Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Wait on parts to repair top drive. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 1-Aug-2013 11:59 PM Current Pump & Flow Data: 0 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 38 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 5.3 9.875 9.50 BHC/MX1 9.50 Size 4697'17 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.5 9.00 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) - Average - Mud Type Lst Type Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $204,176.96 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 7.560 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 25 Surface - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 0 units Avg gas = 0 units Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos -- - 7.63'' 0 0 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 20 Surface - Bit Type Depth 7.558 (ppb Eq) MBT 4697' - 0.0 C-2 - in --Minimum Depth C-5n BHA. Lay down derrick and fix brake. Rig up and test BOP's. - 4697' 4697' 0' Max @ ft Current 0'0.0 Date: Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,672.42 $216,246.80 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) - WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.8 9.50 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 1998' 157' 100% Gas In Air Bit # 1 5.0 9.875 9.50 BHC/MX1 9.55 Size 4697'17 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 39 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 5-Aug-2013 11:59 PM Current Pump & Flow Data: 0 Max - mg/l 21000.00 SDL return to location. Rig up and calibrate all SDL equipment. Finish pulling fished pipe out of hole and lay down Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max gas = 118 units Avg gas = 100 units Continue to Test BOP's, complete BOP test and pick up BHA. Run in hole with BHA and shallow pulse test. Continue Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 21000.00 - 6-Aug-2013 11:59 PM Current Pump & Flow Data: 1763 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 40 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 5.0 9.875 9.55 BHC/MX1 9.55 Size 4697'17 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.8 9.50 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) 100 Average 118 Mud Type Lst Type Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $221,114.22 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 0.0 Flow In (gpm) 4697' 4697' 0' Max @ ft Current 0'0.0 Date: to run in on pipe. Top drive sensor cable damaged by wind, Totco currently not receiving data. - in --Minimum Depth C-5n - 0.0 C-2 - Bit Type Depth 7.558 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 20 Surface - 7.63'' 306 198 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Max gas = 186 units Avg gas = 94 units Continue to trip in hole, circulate and pump whilst tripping in. Large amounts of coal cavings seen on Shakers. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 22000.00 - 7-Aug-2013 11:59 PM Current Pump & Flow Data: 2114 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 41 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray/Todd Jessen Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 5.0 9.875 9.80 BHC/MX1 9.80 Size 4697'18 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 5.0 9.40 cP RPM WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) 100 Average 246 Mud Type Lst Type Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $226,011.64 Drilling Cement PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2069' Yesterday's Depth: Current Depth: 24 Hour Progress: 16.0 Flow In (gpm) 4697' 4723' 26' Max @ ft Current 4730'14.0 Date: Complete trip to bottom, circulate a sweep, begin drilling at 23:20. 94 in 0 -Minimum Depth C-5n 4705' 14.0 C-2 186 Bit Type Depth 7.562 (ppb Eq) MBT 4697' pH 0.739 - - - Siltst 22 Surface - 7.63'' 310 200 Units* Casing Summary Lithology (%) Set At -9486 - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Andrew Bongard/Craig Amos Size 45.5 Grade 10.75'' Ss - Cly 17008 . . * 24 hr Recap: Max gas = 780 units Avg gas = 103 units Ss - Cly 79921 Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher -8794 - 7.63'' 308 199 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 20 Surface 26 Bit Type Depth 5.055 (ppb Eq) MBT 5351' 5315' 49.2 C-2 780 in 0 -Minimum Depth C-5n found between 5300' MD-5320' MD. 103 4723' 5351' 628' Max @ ft Current 5115'57.1 Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: 159.9 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 50 TuffGvlCoal $6,097.42 $232,109.06 Drilling Ahead PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst 10 Type Weight Average - (max)Trip (max)(current) 48 ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.0 4679' 9.00 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection 40 - 2RR 1998' 157' 100% Gas In Air Bit # 1 8.1 9.875 9.75 BHC/MX1 9.75 Size 4714'27 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 42 Customer: Well: Area: Location: Rig: Olson #1 Don Johnson Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 8-Aug-2013 11:59 PM Current Pump & Flow Data: 2176 Max - mg/l 25000.00 Drill ahead f/ 4723' MD to 5351' MD. Samples consist of clays and sandstone with beds of coal. Large coal bed Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Ss - Cly 68417 Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher -14344 5743 7.63'' 155 100 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 20 Surface 31 Bit Type Depth 7.554 (ppb Eq) MBT 5643' 5375' C-2 656 in 15 5397'Minimum Depth C-5n consist of clays and sandstone with large amounts of coal between 5370' MD-5410' MD and 5570' MD-5580' MD. A gas peak of 141 Max gas = 656 units Avg gas = 141 units 5351' 5643' 292' Max @ ft Current 5385'47.2 Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: 169.3 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 20 TuffGvlCoal $4,897.42 $237,036.48 Attempt to free DP PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst 20 Type Weight Average - (max)Trip (max)(current) 10 ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.0 4679' 9.50 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection 60 - 2RR 560 units was recorded in sandstone at approx 5448' MD. 1998' 157' 100% Gas In Air Bit # 1 10.8 9.875 9.80 BHC/MX1 9.80 Size 5373'25 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 43 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 9-Aug-2013 11:59 PM Current Pump & Flow Data: 994 Max - mg/l 24000.00 Drill ahead f/ 5351' MD to 5643' MD. At 5643' MD drill string became stuck. Circ & attempt to free drill string. Samples Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. to attempt to free drill string. Circ & attempt to set jars off. R/U & RIH w/ freepoint tool & become stuck again Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l - 10-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 44 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 9.875BHC/MX1 Size 2RR 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4679' cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 97 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $242,533.90 R/U Fishing Tools PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: near csg shoe. R/U & RIH w/ charge to separate pipe. POOH. R/U fishing tools. Max gas = 97 units Avg gas = 14 units in Minimum Depth C-5nC-2 Bit Type Depth (ppb Eq) MBT 5643' pH 0.739 - - - Siltst Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst Surface - Bit Type Depth (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n magic. Max gas = 114 units Avg gas = 15 units 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $242,533.90 Mix Black Magic PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average 114 (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4679' cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR 1998' 157' 100% Gas In Air Bit # 1 9.875BHC/MX1 Size Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 45 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 11-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l Jar w/o any success. Begin to mix black magic. Wait for more black magic to arrive on location. Cont mix black Density (ppg) out (sec/qt) Viscosity Cor Solids % . . 9 * 24 hr Recap:Cont. mix black magic. Pump black magic down hole and let activate. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 12-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 46 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.5 9.875BHC/MX1 9.90 Size 5643'27 2RR 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.3 4679' 9.10 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 33 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,647.42 $249,828.74 Black magic pill PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: Max gas = 33 units Avg gas = 5 units in Minimum Depth C-5nC-2 . Depth 7.565 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 24 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . 9 * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 25 Surface - . Depth 7.564 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,647.42 $253,476.16 Soak black magic pill PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.6 4679' 9.00 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR 1998' 157' 100% Gas In Air Bit # 1 7.1 9.875BHC/MX1 9.90 Size 5643'28 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 47 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 13-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 26000.00 Cont. let black magic soak. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: an excess of 2322 stks (approx 86 bbls). Cont. let black magic soak. Circ & try to work pipe. Prep to mix additional black magic. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 26000.00 - 14-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 48 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.1 9.875BHC/MX1 9.90 Size 5643'28 2RR A carbide pill dropped this afternoon. The calculated strokes for this pill was 5564 stks and the actual stks was 7886 stks, which is 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.6 4679' 9.00 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 187 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $258,523.58 Prep black magic pill PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: Max gas = 187 units Average Gas = 44 units in Minimum Depth C-5nC-2 . Depth 7.564 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 25 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Andrew Bongard/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 21 Surface - . Depth 7.555 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n Max gas = 121 units 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $262,521.00 Black magic soaking PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average 121 (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.7 4679' 9.20 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR 1998' 157' 100% Gas In Air Bit # 1 7.0 9.875BHC/MX1 9.80 Size 5643'23 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 49 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 15-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000.00 Mix a second black magic pill. Pump pill downhole and let soak. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: ***Please note the extra charge for mudlogger changeout*** Cont. let black magic soak. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 16-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 50 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.0 9.875BHC/MX1 9.80 Size 5643'23 2RR 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.7 4679' 9.20 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average - Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $267,418.42 Black magic soaking PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 7.555 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 21 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 22 Surface - . Depth 7.555 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $271,415.84 Jarring PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.6 4679' 9.40 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR 1998' 157' 100% Gas In Air Bit # 1 7.2 9.875BHC/MX1 9.80 Size 5643'23 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 51 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 17-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 28000.00 Cont. let black magic soak. Begin jarring and working pipe. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. jarring and working pipe. Use free point tool and separate pipe around 1900'. POOH. Test BOPs. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 18-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 52 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.3 9.875BHC/MX1 9.80 Size 5643'24 2RR 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.5 4679' 9.30 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average - Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $275,413.26 Test BOPs PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 7.556 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 21 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 22 Surface - . Depth 7.557 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $279,410.68 Repair top drive PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average - (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.7 4679' 9.30 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR 1998' 157' 100% Gas In Air Bit # 1 7.5 9.875BHC/MX1 9.80 Size 5643'24 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 53 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 19-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000.00 Cont. Test BOPs. Perform top drive repairs. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. repair top drive. P/U 4.5" DP & RIH. Begin to work pipe for 1 hour & begin to circ. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 20-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 54 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.5 9.875BHC/MX1 9.80 Size 5643'25 2RR Max gas = 225 U Average Gas = 104 U 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.7 4679' 9.20 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 225 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $283,408.10 Working pipe PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 7.558 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 22 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 22 Surface - . Depth 7.558 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $287,405.52 POOH PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 ml/30minMud Type Lst Type Weight Average 155 (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.7 4679' 9.20 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection - 2RR Max gas = 155 U Average Gas = 41 U 1998' 157' 100% Gas In Air Bit # 1 7.5 9.875BHC/MX1 9.80 Size 5643'25 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 55 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 21-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000.00 Cont. work pipe & circ. Freepoint pipe & POOH. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:RIH to shoe & circ. Waiting to cmt. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 22-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 56 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 7.5 9.875BHC/MX1 9.80 Size 5643'25 2RR Max gas = 89 U Average Gas = 21 U 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out N/A Avg Min Comments 4.7 4679' 9.20 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 89 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $291,402.94 Wait to cmt PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 7.558 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 22 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -- - 7.63'' Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 9 Surface - . Depth 5.048 (ppb Eq) MBT 5643' C-2 in Minimum Depth C-5n 5643' 5643' 0' Max @ ft Current Date: Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $295,400.36 POOH PV Tools DM/DC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 964' ml/30minMud Type Lst Type Weight Average 78 (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 3.5 4679' 9.30 cP RPM Condition Conductor 5643' Depth in / out =10,000 Units-Connection - 2RR Max gas = 78 U Average Gas = 19 U 1998' 157' Stuck down hole 100% Gas In Air Bit # 1 7.4 9.875BHC/MX1 9.60 Size 5643'10 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 57 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 23-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 22000.00 Pump cmt. POOH. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Wait on cmt & P/U BHA. RIH & tag cmt at 1918' MD. Circ hole clean & POOH. R/U wireline. RIH & set retainer plug. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 21000.00 - 24-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 58 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 8.5 9.875BHC/MX1 9.60 Size 5643'10 2RR Max gas = 81 U Average Gas = 25 U 1998' 157' Stuck down hole 100% Gas In Air=10,000 Units-Connection - Condition Conductor 5643' Depth in / out N/A Avg Min Comments 4.2 4679' 11.60 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 81 Mud Type Lst Type Weight YP (lb/100ft2) 6.75 0.464 964' ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $299,397.78 Test BOPE PV Tools DM/DC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4697' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5643' 5643' 0' Max @ ft Current Date: POOH. Test BOPE. in Minimum Depth C-5nC-2 . Depth 5.050 (ppb Eq) MBT 5643' pH 0.739 - - - Siltst 9 Surface - 7.63'' Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' Ss - Cly - . . * 24 hr Recap: Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -- - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 9 Surface - . Depth 5.050 (ppb Eq) MBT C-2 in Minimum Depth C-5n Circ hole clean. Begin to POOH. 1714' 1714' 0' Max @ ft Current Date: Avg to Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $303,395.20 POOH PV Tools API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.464 964' ml/30minMud Type Lst Type 29.7 Weight Average (max)Trip (max)(current) ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.2 4679' 11.60 cP RPM Condition Conductor 5643' Depth in / out =10,000 Units-Connection - 2RR 1998' 157' Lost in hole 100% Gas In Air Bit # 1 8.5 9.875BHC/MX1 9.60 Size 5643'10 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 59 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 25-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 21000.00 P/U BHA. RIH w/ whipstock assy. Break off whipstock mill window at 1699' MD - 1708'. Mill window to 1714' MD. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont P/U drilling BHA. RIH to 1714' MD. POOH to change to milling BHA. L/D drilling BHA & P/U milling BHA. RIH. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 26-Aug-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 60 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 1 8.0 9.875BHC/MX1 9.60 Size 1714'21 2RR 1998' 157' Lost in hole 100% Gas In Air=10,000 Units-Connection - Condition Conductor 5643' Depth in / out N/A Avg Min Comments 3.6 4679' 10.80 cP RPM ReedHycalog WBM Background Chromatograph (ppm) 2049' WOB (max)Trip (max)(current) Average 37 Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 6.75 0.464 964' ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $308,292.62 RIH PV Tools API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 1714' 1714' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 5.063 (ppb Eq) MBT pH 0.739 - - - Siltst 11 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' L-80 Ss - Cly - . . * 24 hr Recap: Lost in hole2RRReedHycalog6.75 0.464 4679' Ss - Cly 668 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -474 432 7.625 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 11 Surface - . Depth 5.050 (ppb Eq) MBT 1738' C-2 150 in 91 1715'Minimum Depth C-5n drilling BHA. 117 1714' 1740' 26' Max @ ft Current 1723'12.8 Date: Avg to Yesterday's Depth: Current Depth: 24 Hour Progress: 45.2 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $313,190.04 P/U BHA PV Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 ml/30minMud Type Lst Type 29.7 Weight Average 146 (max)Trip (max)(current) STX-1 Hughes Tricone WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 3.6 1740' 10.80 cP RPM Condition Conductor Depth in / out 5643' 964' =10,000 Units-Connection - 4 1998' 157' 100% Gas In Air Bit # 1 7.1 9.875BHC/MX1 9.55 Size 1714'16 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 61 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 27-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 26000.00 Cont. RIH with milling BHA. Drill to 1728' MD. Perform FIT. Drill to 1740' MD & Circ. POOH & L/D BHA. Begin to P/U Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Lost in hole2RRReedHycalog6.75 0.464 4679' Ss - Cly 29191 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -4476 786 7.625 Units* Casing Summary Lithology (%) Set At pH 0.739 - - - Siltst 10 Surface - . Depth 5.042 (ppb Eq) MBT 2109' 1811' C-2 252 in 16 2108'Minimum Depth C-5n of claystone with some sandstone. Coal seen in samples f/ 1800' MD to 1900' MD and f/ 1980' MD to 1990' MD. 51 1740' 2109' 369' Max @ ft Current 2048'44.9 Date: Avg to1740' Yesterday's Depth: Current Depth: 24 Hour Progress: 138.2 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $318,087.46 POOH PV Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 ml/30minMud Type Lst 30 Type 29.7 Weight Average -(max)Trip (max)(current) STX-1 Hughes Tricone WBM Background Chromatograph (ppm) 2049' WOB N/A Avg Min Comments 4.0 1740' 9.50 cP RPM Condition Conductor Depth in / out 5643' 964' =10,000 Units-Connection 70 - 4 Max gas = 252 U Avg Gas = 51 U 1998' 157' 100% Gas In Air Bit # 1 6.4 9.875 9.40 BHC/MX1 9.40 Size 1740'12 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 62 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 28-Aug-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 21000.00 Cont. RIH w/ drilling BHA. Drill ahead f/ 1740' MD to 2109' MD. Begin to POOH to change bit. Samples consist mostly Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. POOH & L/D BHA. P/U BHA & RIH. Drill ahead f/ 2109' MD to 2213' MD. Samples have consisted mainly of Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 29-Aug-2013 11:59 PM Current Pump & Flow Data: 1240 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 63 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 4 7.0 6.75 9.55 STX-1 Hughes Tricone 9.55 Size 2110'29 Max gas = 121 U Avg Gas = 40 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 50 - Condition Conductor Depth in / out N/A Avg Min Comments 3.9 9.30 cP RPM WBM Background Chromatograph (ppm) 1740' 2109' WOB (max)Trip (max)(current) 14 Average - Mud Type Lst 20 Type 29.7 Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $322,984.88 Drill Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 20 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2109' Yesterday's Depth: Current Depth: 24 Hour Progress: 65.5 Flow In (gpm) 2109' 2213' 104' Max @ ft Current 2138'23.4 Date: claystone w/ sandstone. Abundant coal seen in samples f/ 2130' MD to 2150' MD. 40 in 8 2173'Minimum Depth C-5n 2139' 33.8 C-2 121 . Depth 5.063 (ppb Eq) MBT 2213' pH 0.451 - - - Siltst 16 Surface - 7.625 262 168 Units* Casing Summary Lithology (%) 10 Set At -4057 1039 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' L-80 Ss - Cly 11875 5 ReedHycalog PDC 6.75 0.451 2109' . . * 24 hr Recap: 5 ReedHycalog PDC 6.75 0.451 2109' Ss - Cly 12342 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher -3258 1265 7.625 262 164 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 13 Surface - . Depth 5.059 (ppb Eq) MBT 2635' 2465' 29.4 C-2 126 in 14 2534'Minimum Depth C-5n 2360' MD - 2370' MD & 2450' MD - 2460' MD. 35 2213' 2635' 422' Max @ ft Current 2367'32.9 Date: Avg to2213' Yesterday's Depth: Current Depth: 24 Hour Progress: 82.1 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $327,882.30 Drill Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2)ml/30minMud Type Lst 10 Type 29.7 Weight Average -(max)Trip (max)(current) 20 WBM Background Chromatograph (ppm) 1740' 2109' WOB N/A Avg Min Comments 4.0 9.50 cP RPM Condition Conductor Depth in / out =10,000 Units-Connection 90 - Max gas = 126 U Avg Gas = 35 U 1998' 157' 100% Gas In Air Bit # 4 7.0 6.75 9.50 STX-1 Hughes Tricone 9.50 Size 2203'23 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 64 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 30-Aug-2013 11:59 PM Current Pump & Flow Data: 1401 Max - mg/l 27000.00 Drill ahead f/ 2213' MD to 2635' MD. Samples have consisted mainly of claystone and sandstone. Coal observed at Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Drill ahead f/ 2636' MD to 3027' MD. Samples have consisted mainly of claystone and sandstone. Coal observed at Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 31-Aug-2013 11:59 PM Current Pump & Flow Data: 1411 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 65 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 4 9.1 6.75 9.75 STX-1 Hughes Tricone 9.75 Size 2650'26 Max gas = 93 U Avg Gas = 26 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 40 - Condition Conductor Depth in / out N/A Avg Min Comments 3.1 9.50 cP RPM WBM Background Chromatograph (ppm) 1740' 2109' WOB (max)Trip (max)(current) 10 Average - Mud Type Lst 60 Type 29.7 Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $332,779.72 Drill Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to2635' Yesterday's Depth: Current Depth: 24 Hour Progress: 89.7 Flow In (gpm) 2635' 3027' 392' Max @ ft Current 2774'28.8 Date: 2770' MD - 2780' MD. 26 in 11 2683'Minimum Depth C-5n 2948' 8.8 C-2 93 . Depth 5.059 (ppb Eq) MBT 3027' pH 0.451 - - - Siltst 16 Surface - 7.625 253 165 Units* Casing Summary Lithology (%) Set At -2503 1193 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' L-80 Ss - Cly 9776 5 ReedHycalog PDC 6.75 0.451 2109' . . * 24 hr Recap:Drill ahead f/ 3027' MD to 3133' MD. POOH to test BOPs. Samples have consisted mainly of claystone and Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 26000.00 - 1-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 66 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 4 7.2 6.75 9.50 STX-1 Hughes Tricone 9.50 Size 3030'22 Max gas = 32 U Avg Gas = 20 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 40 - Condition Conductor Depth in / out N/A Avg Min Comments 3.9 9.50 cP RPM WBM Background Chromatograph (ppm) 1740' 2109' WOB (max)Trip (max)(current) Average 48 Mud Type Lst 50 Type 29.7 Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $337,677.14 Test BOP PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 10 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to3027' Yesterday's Depth: Current Depth: 24 Hour Progress: 63.0 Flow In (gpm) 3027' 3133' 106' Max @ ft Current 3044'29.2 Date: sandstone. 20 in 14 3104'Minimum Depth C-5n 3051' C-2 32 . Depth 5.055 (ppb Eq) MBT 3133' pH 0.451 - - - Siltst 14 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -1894 1240 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' L-80 Ss - Cly 2942 5 ReedHycalog PDC 6.75 0.451 2109' . . * 24 hr Recap:Cont. test BOP. RIH & drill ahead f/ 3133' MD to 3250' MD. Samples have consisted mainly of claystone and Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000.00 - 2-Sep-2013 11:59 PM Current Pump & Flow Data: 1565 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 67 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 4 8.1 6.75 9.65 STX-1 Hughes Tricone 9.65 Size 3133'24 Max gas = 48 U Avg Gas = 30 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 30 - Condition Conductor Depth in / out N/A Avg Min Comments 5.0 9.40 cP RPM WBM Background Chromatograph (ppm) 1740' 2109' WOB (max)Trip (max)(current) 18 Average 116 Mud Type Lst 70 Type 29.7 Weight YP (lb/100ft2)ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $342,574.56 Drilling Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 0 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to3133' Yesterday's Depth: Current Depth: 24 Hour Progress: 67.1 Flow In (gpm) 3133' 3250' 117' Max @ ft Current 3157'28.4 Date: sandstone. 30 in 20 3194'Minimum Depth C-5n 3221' 9.1 C-2 48 . Depth 5.059 (ppb Eq) MBT 3250' pH 0.451 - - - Siltst 16 Surface - 7.625 267 173 Units* Casing Summary Lithology (%) Set At -2782 1821 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Craig Amos/Leigh Ann Rasher Size 45.5 Grade 10.75'' L-80 Ss - Cly 3615 5 ReedHycalog PDC 6.75 0.451 2109' . . * 24 hr Recap: 6 ReedHycalog PDC 6.75 0.451 2109' Ss - Cly 8481 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard - 1612 7.625 0 0 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 16 Surface - . Depth 5.059 (ppb Eq) MBT 3344' 3338' 0.0 C-2 88 in 16 3194'Minimum Depth C-5n No washout detected in pipe. BHA components and bit still intact. Replace Bit/Motor and MWD components. Begin running back 27 3250' 3344' 94' Max @ ft Current 3157'15.6 Date: Avg to3250' Yesterday's Depth: Current Depth: 24 Hour Progress: 67.1 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 0 TuffGvlCoal $5,797.42 $348,821.98 Drilling Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 70 Type 29.7 Weight Average 0 (max)Trip (max)(current) 0 WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 5.0 9.40 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 30 - Max gas = 88 U Avg Gas = 27 U in hole with new BHA, using steel drill pipe. 1998' 157' 100% Gas In Air Bit # 5 8.1 6.75 9.65 ReedHycalog PDC 9.65 Size 3344'24 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 68 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 3-Sep-2013 11:59 PM Current Pump & Flow Data: 0 Max - mg/l 27000.00 Drill from 3250' to 3344' MD. Experience pressure loss of unknown origin, begin to pull pipe and check for washout. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Calibrated gas detection equipment and continued tripping in to bottom at 3,344' MD. Drilled ahead, back reaming Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 29000.00 - 4-Sep-2013 11:59 PM Current Pump & Flow Data: 1800 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 69 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 4.8 6.75 9.50 ReedHycalog PDC 9.50 Size 3344'19 Max gas = 140 U Avg Gas = 45 U and reamed while trouble shooting. Repaired and resumed drilling out to 3,728' MD. Formation consists of 80% silty claystone and 1998' 157' 100% Gas In Air=10,000 Units-Connection 80 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 4.0 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 0 Average 0 Mud Type Lst 10 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $353,719.40 Drilling Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to3344' Yesterday's Depth: Current Depth: 24 Hour Progress: 95.0 Flow In (gpm) 3344' 3728' 384' Max @ ft Current 3520'20.0 Date: each stand to 3,695' MD. Lost connection to the rigs depth tracking system. Continued drilling out one stand to 3,725' MD. Washed 45 in 7 3365'Minimum Depth C-5n 3553' 41.0 C-2 140 . Depth 5.051 (ppb Eq) MBT 3728' pH 0.451 - - - Siltst 14 Surface - 7.625 5 192 Units* Casing Summary Lithology (%) Set At - 920 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 11208 10% sandstone. 6 ReedHycalog PDC 6.75 0.451 2109' Ss . . * 24 hr Recap: 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly 30130 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard -5196 2532 7.625 299 192 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 14 Surface - . Depth 5.051 (ppb Eq) MBT 3907' 3553' 0.0 C-2 320 in 23 3365'Minimum Depth C-5n Begin short tripping to clean hole at 6am. Trip out of hole whilst pumping currently at 1685' MD inside casing window. 54 3728' 3907' 179' Max @ ft Current 3818'50.0 Date: Avg to3728' Yesterday's Depth: Current Depth: 24 Hour Progress: 140.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $355,766.82 Drilling Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 20 Type 29.7 Weight Average 121 (max)Trip (max)(current) 0 WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.0 9.50 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 80 - Max gas = 320 U Avg Gas = 54 U Formation consists of 80% silty claystone and 20% sandstone. 1998' 157' 100% Gas In Air Bit # 5 4.8 6.75 9.40 ReedHycalog PDC 9.40 Size 3344'19 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 70 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 5-Sep-2013 11:59 PM Current Pump & Flow Data: 1344 Max - mg/l 29000.00 Continue to Drill from 3728' to 3907' MD. Coal bed at 3793' MD associated with a 320 U gas peak. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Finish short trip and pull pipe inside milled window. Begin to TIH, experience problems with top drive. Begin repairs Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000.00 - 6-Sep-2013 11:59 PM Current Pump & Flow Data: 1752 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 71 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 4.8 6.75 9.45 ReedHycalog PDC 9.45 Size 3344'20 Max gas = 120 U Avg Gas = 43 U Formation consists of 80% silty claystone and 20% sandstone with occasional coal beds. 1998' 157' 100% Gas In Air=10,000 Units-Connection 80 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 3.9 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 45 Average 121 Mud Type Lst 20 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $359,464.24 Drilling Ahead PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to3907' Yesterday's Depth: Current Depth: 24 Hour Progress: 140.0 Flow In (gpm) 3907' 3985' 78' Max @ ft Current 3818'50.0 Date: on top drive. Complete repairs and TIH , commence drilling from 3907' to 3985' MD. 43 in 8 3908'Minimum Depth C-5n 3553' 36.0 C-2 120 . Depth 5.050 (ppb Eq) MBT 3985' pH 0.451 - - - Siltst 12 Surface - 7.625 299 191 Units* Casing Summary Lithology (%) Set At -3296 875 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 12225 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: Began 500' short trip, pumping each joint at 104 SPM (160 GPM) at report time. 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly 23906 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - David McKechnie Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard -4763 944 7.625 160 104 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst Surface - . Depth (ppb Eq) MBT 4372' 3553' N/A C-2 304 in 18 3908'Minimum Depth C-5n shakers. Continued drilling out to 4175' MD. Pumped additional sweep. Minimal increase in cuttings noted at the shakers. 61 3985' 4372' 387' Max @ ft Current 4298'15.5 Date: Avg to3985' Yesterday's Depth: Current Depth: 24 Hour Progress: 104.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 10 TuffGvlCoal $4,897.42 $364,361.66 Short Tripping PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 20 Type 29.7 Weight Average N/A (max)Trip (max)(current) 104 WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 70 - Max gas = 304 U Avg Gas = 61 U p p g g p 1998' 157' 100% Gas In Air Bit # 5 6.75ReedHycalog PDC Size 4372' Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 72 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 7-Sep-2013 11:59 PM Current Pump & Flow Data: 922 Max - mg/l Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Continue to short trip inside casing window to repair mud pump leak. Continue to Repair mud pump whilst rigging Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000 - 8-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 73 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 3.9 6.75 9.50 ReedHycalog PDC 9.45 Size 4372'18 Max gas = 142 U (Trip Gas) Avg Gas = 0 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 70 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 3.2 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) Average 142 Mud Type Lst 20 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $372,859.08 Short Tripping PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 10 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4372' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 4372' 4372' 0' Max @ ft Current Date: up to complete weekly BOP test. Plan forward is to complete BOP test and TIH to continue drilling. in Minimum Depth C-5nC-2 . Depth 5.054 (ppb Eq) MBT 4372' pH 0.451 - - - Siltst 17 Surface - 7.625 Units* Casing Summary Lithology (%) Set At - 9074338968Unit Phone: - David McKechnie Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 17 Surface - . Depth 5.054 (ppb Eq) MBT 4372' C-2 in Minimum Depth C-5n Look ahead, complete repairs to pumps, trip in hole to continue drilling. 4372' 4372' 0' Max @ ft Current Date: Avg to4372' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 10 TuffGvlCoal $4,897.42 $377,756.50 Short Tripping PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 20 Type 29.7 Weight Average -(max)Trip (max)(current) WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 3.2 9.50 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 70 - Max gas = 0 U Avg Gas = 0 U 1998' 157' 100% Gas In Air Bit # 5 3.9 6.75 9.50 ReedHycalog PDC 9.45 Size 4372'18 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 74 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 9-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000 Complete BOP test, continue to repair flow line from pumps to top drive, several repair attempts unsuccessful. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Complete work on pump repairs. Begin to run in hole, trip in hole to 2300' MD, attempt to circulate, one pump failed Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000 - 10-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 75 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray, Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 3.9 6.75 9.50 ReedHycalog PDC 9.45 Size 4372'18 Max gas = 43 (Trip Gas) U Avg Gas = 0 U coming from Anchorage. Still working on repairs at midnight, starter motor installed working on starting engine. 1998' 157' 100% Gas In Air=10,000 Units-Connection 70 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 3.2 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) - Average 43 Mud Type Lst 20 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $382,653.92 Short Tripping PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 10 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4372' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 4372' 4372' 0' Max @ ft Current Date: to start, investigate problem whilst circulating at slow pump rate. Discover starter motor not working and being repairs. Parts - in -Minimum Depth C-5n - C-2 - - . Depth 5.054 (ppb Eq) MBT 4372' pH 0.451 - - - Siltst 17 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly - 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: is limited, some crusehed cuttings in samples, little to no cavings produced. 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly 19271 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Craig Amos Maximum Report By:Logging Engineers:Craig Amos/Andrew Bongard -- - 7.625 212 326 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 20 Surface - . Depth 5.050 (ppb Eq) MBT 4577' 4378' 20.0 C-2 - 206 in 22 4476'Minimum Depth C-5n to 4577' MD at 00:00. Max gas of 206 units seen at 4378' MD, pump 20 ppg weighted sweep at 4560' MD, sweep returned 107 44 4372' 4577' 205' Max @ ft Current 4509'21.0 Date: Avg to4372' Yesterday's Depth: Current Depth: 24 Hour Progress: 104.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $388,001.34 Short Tripping PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 20 Type 29.7 Weight Average 101 (max)Trip (max)(current) 32 WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 3.8 9.30 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 80 - Max gas = 206 U (Trip Gas 101 U) Avg Gas = 42 U strokes late with an increase of 70% cuttings over shakers. Cuttings predominantly less than 0.5 mm or 0.2", cuttings definition 1998' 157' 100% Gas In Air Bit # 5 3.8 6.75 9.40 ReedHycalog PDC 9.40 Size 4372'18 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 76 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 11-Sep-2013 11:59 PM Current Pump & Flow Data: 2194 Max - mg/l 28000 Complete rig repairs, Trip in hole and circulate, trip gas of 101 units. Continue drilling 6.75" hole section from 4372' Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Continue drilling 6.75" hole section from 4577' MD to 4867' MD. Samples have consisted mainly of claystone with Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 26000 - 12-Sep-2013 11:59 PM Current Pump & Flow Data: 2291 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 77 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 4.0 6.75 9.40 ReedHycalog PDC 9.40 Size 4580'28 Max gas = 236 U Avg Gas = 60 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 60 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 3.7 9.00 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 15 Average - Mud Type Lst 30 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $5,797.42 $393,798.76 Drill 6.75" Section PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) 10 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to4577' Yesterday's Depth: Current Depth: 24 Hour Progress: 102.8 Flow In (gpm) 4577' 4867' 290' Max @ ft Current 4688'28.1 Date: typically 10-30% sandstone. Abundant coal observed at 4590' MD - 4610' MD, 4700' MD - 4710' MD, and 4830' MD - 4840' MD. 60 in 20 4806'Minimum Depth C-5n 4585' 33.9 C-2 - 236 . Depth 2.554 (ppb Eq) MBT 4867' pH 0.451 - - - Siltst 20 Surface - 7.625 332 214 Units* Casing Summary Lithology (%) Set At -5223 1847 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 23761 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: MD - 4970' MD. Abundant coal observed at 4880' MD - 4890' MD, 4980' MD - 4990' MD and 5010' MD - 5020' MD. 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly 38133 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -5332 1120 7.625 328 211 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 20 Surface - . Depth 5.053 (ppb Eq) MBT 5043' 5022' 14.4 C-2 390 in 18 4959'Minimum Depth C-5n stks. BROOH to approx. 4300' MD. Pump second sweep, returned approx 300 stks late. Begin to RIH. Fix shaker/pump issues. 66 4867' 5043' 176' Max @ ft Current 4989'25.5 Date: Avg to4867' Yesterday's Depth: Current Depth: 24 Hour Progress: 116.8 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 10 TuffGvlCoal $4,897.42 $398,696.18 Drill 6.75" Section PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst 10 Type 29.7 Weight Average 218 (max)Trip (max)(current) 19 WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 3.2 9.60 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection 80 - Max gas = 390 U (Trip = 218 U) Avg Gas = 66 U Cont. to RIH and begin to drill ahead to 5043' MD. Samples have consisted mainly of claystone with abundant sandstone at 4950' 1998' 157' 100% Gas In Air Bit # 5 5.8 6.75 9.45 ReedHycalog PDC 9.45 Size 4879'27 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 78 Customer: Well: Area: Location: Rig: Olson #1 Don Jones Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 13-Sep-2013 11:59 PM Current Pump & Flow Data: 2180 Max - mg/l 29000 Continue drilling 6.75" hole section from 4867' MD to 4897' MD. Pump sweep, sweep returned at estimated in/out Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. to drill ahead f/ 5043' MD to 5253' MD. Begin to BROOH to fix top drive issues. Samples have consisted of Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 29000 - 14-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 79 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 3.7 6.75 9.45 ReedHycalog PDC 9.45 Size 5043'27 Max gas = 286 U (Trip = 66 U) Avg Gas = 60 U 1998' 157' 100% Gas In Air=10,000 Units-Connection 60 - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 3.2 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) Average 66 Mud Type Lst 40 Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $403,593.60 BROOH PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5043' Yesterday's Depth: Current Depth: 24 Hour Progress: 163.6 Flow In (gpm) 5043' 5253' 210' Max @ ft Current 5234'25.8 Date: claystone and sandstone w/ abundant coal from 5080' MD-5090' MD, 5110' MD - 5120' MD and 5160' MD - 5170' MD. 60 in 22 5235'Minimum Depth C-5n 5065' C-2 286 . Depth 5.055 (ppb Eq) MBT 5253' pH 0.451 - - - Siltst 20 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -6030 2587 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 28538 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: sandstone and 10-20% coal. Samples from sweeps consist mainly of claystone w/ some coal. 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -- - 7.625 137 88 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 21 Surface - . Depth 5.059 (ppb Eq) MBT 5253' C-2 in Minimum Depth C-5n Cont BROOH, packed off and lost circ approx 3989' MD. RIH, re gain circ (Max Gas 1017 U). Raise MW to 9.6+ and pump another 5253' 5253' 0' Max @ ft Current Date: Avg to5253' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $408,491.02 Circulating PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst Type 29.7 Weight Average 1017 (max)Trip (max)(current) WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.0 9.50 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection - Max gas = 1017 U Avg Gas = 62 U sweep. Cont circ. Multiple samples from 1017 U gas peak consist of 80-90% uncons sandstone and 10-20% coal. Samples from 1998' 157' 100% Gas In Air Bit # 5 4.9 6.75 9.70 ReedHycalog PDC 9.70 Size 5253'25 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 80 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 15-Sep-2013 11:59 PM Current Pump & Flow Data: 637 Max - mg/l 27000 Cont to BROOH. Packed off approx 4205' MD. RIH to work pipe and re gain circ (Max Gas 990 U). Pumped 2 sweeps. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont circ. Pump sweep & BROOH. Fix pump issues. Cont BROOH. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000 - 16-Sep-2013 11:59 PM Current Pump & Flow Data: 847 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 81 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 4.9 6.75 9.70 ReedHycalog PDC 9.70 Size 5253'25 Max gas = 60 U Avg Gas = 16 U 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out 91.0 N/A Avg Min Comments 4.0 9.50 cP RPM WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) Average 60 Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $413,388.44 BROOH PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5253' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5253' 5253' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 5.059 (ppb Eq) MBT 5253' pH 0.451 - - - Siltst 21 Surface - 7.625 278 179 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly - 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -- - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 21 Surface - . Depth 5.060 (ppb Eq) MBT 5253' C-2 in Minimum Depth C-5n 5253' 5253' 0' Max @ ft Current Date: Avg to5253' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $418,285.86 Test BOPs PV 369' Tools SperryDrill Lobe, TM HOC API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 20.3 ml/30minMud Type Lst Type 29.7 Weight Average 16 (max)Trip (max)(current) WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.9 9.00 cP RPM Condition Conductor Depth in / out 91.0 =10,000 Units-Connection - Max gas = 16 U 1998' 157' 100% Gas In Air Bit # 5 5.6 6.75 9.70 ReedHycalog PDC 9.70 Size 5253'27 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 82 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 17-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 28000 Cont BROOH. Test BOPs. Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont test BOPS. Repair top drive. L/D BHA & P/U BHA. RIH. Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 29000 - 18-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 83 Customer: Well: Area: Location: Rig: Olson #1 Mike Murray Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 5.8 6.75 9.75 ReedHycalog PDC 9.75 Size 5253'27 6RR 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition Conductor Depth in / out 91.0 5253' 1909' N/A Avg Min Comments 3.2 5253' 9.50 cP RPM ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) Average - Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 6.75 0.451 20.3 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $423,183.28 RIH PV 369' Tools SperryDrill Lobe API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5253' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5253' 5253' 0' Max @ ft Current Date: in Minimum Depth C-5nC-2 . Depth 5.062 (ppb Eq) MBT 5253' pH 0.451 - - - Siltst 23 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly - 6 ReedHycalog PDC 6.75 0.451 3344' Ss . . * 24 hr Recap: Sweep #3 @ 5200' MD - 70% Sst, 20% Clyst, 10% Coal Sweep #2 @ 4624' MD - 50% Coal; 40% Clyst; 10% Sst; 6 ReedHycalog PDC 6.75 0.451 3344' Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -- - 7.625 340 220 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 20 Surface - . Depth 5.059 (ppb Eq) MBT 5263' 21.8 C-2 in Minimum Depth C-5n Max Gas = 110 U (Trip Gas) 5253' 5263' 10' Max @ ft Current 5256'24.6 Date: Avg to5253' Yesterday's Depth: Current Depth: 24 Hour Progress: 44.4 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $428,080.70 Drill 6.75" Section PV 369' Tools SperryDrill Lobe API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 20.3 ml/30minMud Type Lst Type 29.7 Weight Average 110 (max)Trip (max)(current) ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.6 5253' 9.00 cP RPM Condition Conductor Depth in / out 91.0 5253' 1909' =10,000 Units-Connection - 6RR Samples: Sweep #1 @ 4273' MD - 90% Clyst, 10% Coal; 1998' 157' 100% Gas In Air Bit # 5 4.8 6.75 9.65 ReedHycalog PDC 9.65 Size 5253'29 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 84 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 19-Sep-2013 11:59 PM Current Pump & Flow Data: 1911 Max - mg/l 28000 Cont. RIH pumping sweeps as needed. Drill ahead f/ 5253' MD to 5263' MD. Sw Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Drill ahead f/ 5263' MD - 5353' MD. Fix pump. Pump sweep & cont drill ahead to 5511' MD. Samples have Sw Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000 - 20-Sep-2013 11:59 PM Current Pump & Flow Data: 2082 Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 85 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 8.0 6.75 9.75 ReedHycalog PDC 9.75 Size 5273'26 6RR coal found between 5320' MD - 5330' MD, 5370' MD - 5380' MD, 5390' MD - 5400' MD & 5450' MD - 5460' MD. Sample f/ sweep @ 1998' 157' 100% Gas In Air=10,000 Units210Connection 40 - Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 N/A Avg Min Comments 4.0 5253' 9.50 cP RPM ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 16 Average - Mud Type Lst 30 Type 29.7 Weight YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $432,978.12 Drill 6.75" Section PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) 30 TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5263' Yesterday's Depth: Current Depth: 24 Hour Progress: 90.5 Flow In (gpm) 5263' 5511' 248' Max @ ft Current 5461'29.9 Date: consisted mainly of claystone w/ 10-30% sst. Abundant sst observed @ 5380' MD - 5390' MD & 5420' MD - 5450' MD. Abundant 78 Max Gas = 316 U Avg Gas = 78 U Max Conn Gas = 210 U in 23 5492'Minimum Depth C-5n 5444' 27.3 C-2 316 . Depth 7.573 (ppb Eq) MBT 5511' pH 0.451 - - - Siltst 15 Surface 9 7.625 340 219 Units* Casing Summary Lithology (%) Set At -7189 1477 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly 31886 5327' MD consisted of 80% coal, 10% clyst, 10% sst. 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss . . * 24 hr Recap: 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss - Cly 44837 Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -4766 880 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 15 Surface 26 . Depth 7.573 (ppb Eq) MBT 5715' 5516' C-2 393 in 18 5642'Minimum Depth C-5n consisted mainly of clyst. Abundant coal observed f/ 5650' MD - 5660' MD & 5670' MD - 5680' MD. Sample from sweep pumped @ 50 Max Gas = 393 U Avg Gas = 50 U 5511' 5715' 204' Max @ ft Current 5687'25.3 Date: Avg to5511' Yesterday's Depth: Current Depth: 24 Hour Progress: 62.0 Flow In (gpm) Gas Summary - -- (current) C-1 C-5i 10 TuffGvlCoal $4,897.42 $437,875.54 Waiting for fishing hands PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30minMud Type Lst 10 Type 29.7 Weight Average -(max)Trip (max)(current) ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.0 5253' 9.50 cP RPM Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 =10,000 Units-Connection 80 - 6RR 5649' MD consisted of 80% clyst, 10% coal, 10% sst. 1998' 157' 100% Gas In Air Bit # 5 8.0 6.75 9.75 ReedHycalog PDC 9.75 Size 5273'26 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 86 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 21-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000 Drilled ahead f/ 5511' MD to 5715' MD. POOH due to 56 jts DP + BHA twist off. Waiting for fishing hands. Samples Sw Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap:Cont. wait for fishing hands. RIH w/ fishing tools. Attach to drillstring & POOH, getting stuck at 5438' MD. Pump Sw Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 28000 - 22-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 87 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 8.9 6.75 9.75 ReedHycalog PDC 9.75 Size 5715'20 6RR coal, 10% sst. 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 N/A Avg Min Comments 4.4 5253' 9.60 cP RPM ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) Average 129 Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $4,897.42 $442,772.96 Surveying PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5715' 5715' 0' Max @ ft Current Date: sweep. Attempt to work drillstring. RIH with survey tool & take survey. Sample f/ sweep @ 5438' MD consisted of 70% clyst, 20% Max Gas = 129 U Avg Gas = 12 U in Minimum Depth C-5nC-2 . Depth 7.546 (ppb Eq) MBT 5715' pH 0.451 - - - Siltst 14 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly - 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss . . * 24 hr Recap: 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Leigh Ann Rasher Maximum Report By:Logging Engineers:Leigh Ann Rasher/Andrew Bongard -- - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 11 Surface - . Depth 7.553 (ppb Eq) MBT 5715' C-2 in Minimum Depth C-5n top drive repairs. Circ & cont work pipe. Max Gas = 51 U 5715' 5715' 0' Max @ ft Current Date: Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $4,897.42 $447,670.38 Circ & work pipe PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30minMud Type Lst Type 29.7 Weight Average 51 (max)Trip (max)(current) ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.4 5253' 9.40 cP RPM Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 =10,000 Units-Connection - 6RR 1998' 157' 100% Gas In Air Bit # 5 8.0 6.75 9.75 ReedHycalog PDC 9.75 Size 5715'19 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 88 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 23-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000 Cont. survey. POOH w/ survey tool. POOH w/ fishing BHA. M/U & RIH w/ new fishing BHA. Begin to work pipe. Make Sw Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss - Cly - Size 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard -- - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 14 Surface - . Depth 5.058 (ppb Eq) MBT 5715' C-2 4 in 0Minimum Depth C-5n 1 Max Gas = 4 U 5715' 5715' 0' Max @ ft Current Date: Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $451,667.80 Testing BOP PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30minMud Type Lst Type 29.7 Weight Average (max)Trip (max)(current) 0 ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.8 5253' 9.30 cP RPM Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 =10,000 Units-Connection - 6RR 1998' 157' 100% Gas In Air Bit # 5 9.0 6.75 9.80 ReedHycalog PDC 9.80 Size 5715'22 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 89 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 24-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 27000 Pull-out-of-hole with fishing assembly. Rigged up to test BOP. Began testing BOP. Prepare to mix black magic pill. Sw Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max Gas = 0 U Complete BOP testing. Mix the black magic pill. Run-in-hole with fishing BHA. Prepare to pump the black magic Sw Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 27000 - 25-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 90 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 9.0 6.75 9.80 ReedHycalog PDC 9.80 Size 5715'22 6RR Note: The mud data is from the previous night's mud report. 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 N/A Avg Min Comments 4.8 5253' 9.30 cP RPM ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 0 Average Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $2,797.42 $454,465.22 Prepare to pump pill PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5715' 5715' 0' Max @ ft Current Date: pill. 0 in 0Minimum Depth C-5nC-2 0 . Depth 5.058 (ppb Eq) MBT 5715' pH 0.451 - - - Siltst 14 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Andrew Bongard Maximum Report By:Logging Engineers:Andrew Bongard Size 45.5 Grade 10.75'' L-80 - Cly - 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss . . * 24 hr Recap: Max Gas = 0 U Black Magic pill was spotted, and currently waiting on pill to work. Sw Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 26000 - 28-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 91 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max Bit # 5 9.1 6.75 9.75 ReedHycalog PDC 9.75 Size 5715'19 6RR Note: The mud data is from the previous night's mud report. 1998' 157' 100% Gas In Air=10,000 Units-Connection - Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 N/A Avg Min Comments 4.6 5253' 9.10 cP RPM ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB (max)Trip (max)(current) 0 Average Mud Type Lst Type 29.7 Weight YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min --- -- CementChtSilt C-4i C-4n - Hours C-3 Footage ShClyst $3,997.42 $462,560.06 Wait on Black Magic PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) TuffGvlCoal Gas Summary - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5715' 5715' 0' Max @ ft Current Date: 0 in 0Minimum Depth C-5nC-2 0 . Depth 5.060 (ppb Eq) MBT 5715' pH 0.451 - - - Siltst 11 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Pascal Poupart Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart Size 45.5 Grade 10.75'' L-80 - Cly - 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss . . * 24 hr Recap: Max Gas = 118 U then pulled up to the 814'. Currently at report time, waiting on orders. 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss - Cly - 45.5 Grade 10.75'' L-80 9074338968Unit Phone: - Pascal Poupart Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart -- - 7.625 Units* Casing Summary Lithology (%) Set At pH 0.451 - - - Siltst 11 Surface - . Depth 5.060 (ppb Eq) MBT 5715' C-5nC-2 0 in 0Minimum Depth Size drill pipe was seperated at 2308'. Once removed from the string, the hole was circulated out and a carbide bomb was circulated 0 Note: The mud data is from the previous night's mud report. 5715' 5715' 0' Max @ ft Current Date: Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gas Summary - -- (current) C-1 C-5i TuffGvlCoal $3,997.42 $466,557.48 Wait on Orders PV 1235' Tools SperryDrill Lobe API FL TFA ECD (ppg) - Hours C-3 Footage ShClyst CementChtSilt C-4i C-4n --- -- YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30minMud Type Lst Type 29.7 Weight Average (max)Trip (max)(current) 81 ReedHycalog PDC WBM Background Chromatograph (ppm) 2109' 3344' WOB N/A Avg Min Comments 4.6 5253' 9.10 cP RPM Condition 1-3-CT-G-X-I-BT-PP Conductor Depth in / out 91.0 5253' 1909'22 =10,000 Units-Connection - 6RR around, with 54 strokes over the proposed circulation. Adjusted volume increase was calculated out at 12% over 600'. The rig 1998' 157' 100% Gas In Air Bit # 5 9.1 6.75 9.75 ReedHycalog PDC 9.75 Size 5715'19 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Morning Report Report # 92 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A 29-Sep-2013 11:59 PM Current Pump & Flow Data: Max - mg/l 26000 Circulated out the black magic. Attempt to pull the pipe with no luck. Pollard Wireline was then rigged up and the Sw Density (ppg) out (sec/qt) Viscosity Cor Solids % . . * 24 hr Recap: Max Gas = 134 U Received orders from town to pull out of the hole, lay down the backoff equipment, and to pick up stinging equipment Sw Density (ppg) out (sec/qt) Viscosity Cor Solids %mg/l 26000 - 30-Sep-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 93 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 24 hr Max ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy 19 Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 100% Gas In Air Bit # 5 9.1 6.75 9.75 ReedHycalog PDC 9.75 Size 6RR job. Once completed, the string was pulled out of the hole. Currently at report time, locating equipment for the trip to bottom to 91.0 5253' 1909'22 =10,000 Units-Connection - Min Comments 4.6 5253' 9.10 cP RPM Condition 1-3-CT-G-X-I-BT-PP2109' 3344' WOB N/A Avg Conductor Depth in / out (current) 81 ReedHycalog PDC WBM Background 1998' 157' 5715' (max)Trip (max) Average Mud Type Lst Type 29.7 YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min C-4i C-4n -- Clyst CementChtSilt Chromatograph (ppm) ECD (ppg) - Hours C-3 Footage Sh Coal $3,997.42 $470,554.90 Wait on Cement PV 1235' Tools SperryDrill Lobe API FL - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5715' 5715' 0' Max @ ft Current Date: to do a downhole cement job. Tripped down the hole and broke circulation. Max gas 134 units. Lined up and completed a cemnt 0 Note: The mud data is from the previous night's mud report. --- Depth Size Gas Summary TuffGvl 0Minimum C-5nC-2 0 . Depth 5.060 (ppb Eq) MBT 5715' in TFA pH 0.451 - - - Siltst 11 Surface - 7.625 Units* Casing Summary Lithology (%) Set At -- - 9074338968Unit Phone: - Pascal Poupart Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart 45.5 Grade 10.75'' L-80 Weight - Cly - tag cement. 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' Ss . . * 24 hr Recap: Max Gas = 32 U Continued to wait on cement. At 10:30, pumped down and thought had tagged cement at 1535. Circulated bottoms up and found 9074338968Unit Phone: Cor Solids % pH Continued to trip in the hole to 1925'. Circulated bottoms up and found no cement again. Pulled out of the hole and laid down the Circulated bottoms up. After circulating, tripped on in the hole. At report time, the BHA was at 2095'. Continued ot wait on cement. Made up drillable BHA and ran in the hole to 1000'. Circulated 2 bottoms up. And then Sw mg/l 26000 - 1-Oct-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 94 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max 100% Gas In Air Bit # 5 9.1 6.75 9.75 ReedHycalog PDC 9.75 Size 19 6RR Note: The mud data is from the previous night's mud report. BHA to pick up drill pipe, open-ended to do another cement job. Mix a high-vis high-weight pill and then tripped in the hole to 1800' no cement. Tripped in the hole to 1700' with still no luck on encountering cement. Circulated bottoms up and verified. Continued 91.0 5253' 1909'22 =10,000 Units-Connection - Min Comments 4.6 5253' 9.10 cP RPM Condition 1-3-CT-G-X-I-BT-PP2109' 3344' WOB N/A Avg Conductor Depth in / out (current) 32 ReedHycalog PDC WBM Background 1998' 157' 5715' (max)Trip (max) Mud Type Lst Type 29.7 Average YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min -- CementChtSilt Chromatograph (ppm) Coal - Hours C-3 Footage ShClyst $3,997.42 $474,552.32 Circulation PV 1235' Tools SperryDrill Lobe API FL 0.451 ECD (ppg) - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) 5715' 5715' 0' Max @ ft Current Date: TuffGvl 0 ---- Gas Summary C-4i C-4n Minimum Depth Size C-5nC-2 0 60 (ppb Eq) MBT 5715' in TFA Density (ppg) out (sec/qt) Viscosity - - Siltst 11 Surface - 45.5 5.0 Units* Casing Summary Lithology (%) Set At . Depth - - 7.625 -0 Pascal Poupart Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart - Grade 10.75'' L-80 Weight Cly - tripping in the hole to 1830', upon with the hole showed some weight being applied. Circulated bottoms up, but found no cement Ss - 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 3344' . . * 24 hr Recap: Max Gas = 30 U Note: The mud data is from the previous night's mud report. at 2100'. Once the pill was spotted on bottom, pulled out of the hole from 2100' to 1920', and circulated the hole clean. Rigged up 9074338968Unit Phone: once on surface, found no contamination, nor cement. Pulled out of the hole to 1300' and circulated the hole, waiting on the cement. Tripped up the hole to 1410' and started circulating the hole, waiting on cement. Currently at report time, working the pipe Pascal Poupart Cor Solids % pH pressure tested the BOP's. Once the BOP's were tested, the wear bushing was reinstalled. Rigged up and then ran in the hole 100'. Circulated at 1200' to surface and found no contamination in the mud or cement. Continued in the hole from 1200' to 1300'. Continue to Circulate, working the pipe, and clean the hole form 2070' to 2100'. Pumped 22 bbls of a 14.5+ ppg pill Sw mg/l 25000 - 2-Oct-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 95 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max 100% Gas In Air Bit # 5 9.3 6.75 9.70 ReedHycalog PDC 9.70 Size 19 6RR circulating the hole, waiting on cement. cement. Tripped down the hole again from 1320' to 1500'. Circulated the hole with two bottoms up found no contamination, nor with open ended drill pipe as a BHA. Tripped in the hole from surface to 1020', pumping down the drill pipe and circulating every at that point and pumped a 13.5 ppg cement plug at 1920'. Once the cement plug was pumped, pulled out of the hole from 1920' (current) 30 91.0 5253' 1909'22 =10,000 Units-Connection - Min Comments 3.8 5253' 9.80 cP RPM Condition 1-3-CT-G-X-I-BT-PP2109' 3344' WOB N/A Avg Conductor Depth in / out ReedHycalog PDC WBM Background 1998' 157' 1500' (max)Trip (max) Mud Type Lst Type 29.7 Cht Silt Average YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min -- Tuff Cement - Hours C-3 Footage ShClyst $3,997.42 $478,549.74 Waiting on Cement PV 1235' Tools SperryDrill Lobe API FL 0.451 ECD (ppg) - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gvl 5715' 5715' 0' Max @ ft Current Date: 0 Circulated the hole and found no contamination, nor cement. Pumped in the hole form 1300' to 1420'. Broke circulation again, and ----- to 990'. Circulated drill pipe clean of cement and then pulled out of the hole. Once out of the hole, cleared the rig floor and then Gas Summary C-4i C-4n Minimum Depth Size C-5n - - Siltst C-2 0 58 (ppb Eq) MBT 5715' in TFA Density (ppg) out (sec/qt) Viscosity 11 Surface - 45.5 3344' Chromatograph (ppm) Units* Casing Summary Lithology (%) Set At . Depth Grade - 7.625 -0 Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart - - 10.75'' L-80 Weight ClySs Coal - 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 . . * 24 hr Recap: Max Gas = 31 U Note: The mud data is from the previous night's mud report. to 1785'. Tagged cement at 1785'. Circulated bottoms up and confirmed that cement was present. Once confirmed, two bottoms 9074338968Unit Phone: Restarted pulling out of the hole from 790' to surface, made up a bit to the drill pipe, and then tripped back in the hole to 785'. Pascal Poupart Cor Solids % pH 1785', circulated bottoms up, and picked up the hole to 1780'. Rigge dup cement lines, circulating pin and cross-over. Held a Pre- slurry with 5 barrels water behine and then displaced with 9.7 ppg mud. Cement in place at 1510 hrs. Rigged down the cement Continue to Circulate, working the pipe, and clean the hole at 1410', waiting on cement. Ran in the hole from 1410' Sw mg/l 25000 - 3-Oct-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 96 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max 100% Gas In Air Bit # 5 9.3 6.75 9.70 ReedHycalog PDC 9.70 Size 19 6RR Lined up and started circulating at the 785', waiting on cement. Job safety meeting and then performed the cement job. Pumped 10 bbls spacer, down the hardline, then a batch of 23.6 barrels up were circulated to clean the hole up and the pulled out of the hole from 1785' to Surface. Once on surface, serviced the rig and (current) 31 91.0 5253' 1909'22 =10,000 Units-Connection - Min Comments 3.8 5253' 9.80 cP RPM Condition 1-3-CT-G-X-I-BT-PP2109' 3344' WOB N/A Avg Conductor Depth in / out ReedHycalog PDC WBM Background 1998' 157' 1500' (max)Trip (max) Mud Type Lst Type 29.7 Cht Silt Average YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min -- - Tuff Cement - Hours C-3 Footage ShClyst $3,997.42 $482,547.16 Waiting on Cement PV 1235' Tools SperryDrill Lobe API FL 0.451 ECD (ppg) - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gvl 5715' 5715' 0' Max @ ft Current Date: 0 lines with the well on a vacumm. Pulled out of the hole from 1780' to 790' and circulated three times until the shakers were clean. ----- fabricated a mule shoe and installed. Once installed, ran in the holw with 4 1/2" drill pipe to 1690'. Washed down to cement top at Gas Summary C-4i C-4n Minimum Depth Size C-5n - - Siltst C-2 0 58 (ppb Eq) MBT 5715' in TFA Density (ppg) out (sec/qt) Viscosity 11 Surface - 45.5 3344' Chromatograph (ppm) Units* Casing Summary Lithology (%) Set At . Depth Grade - 7.625 -0 Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart - - L-80 Weight ClySs Coal 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 10.75'' . . * 24 hr Recap: Max Gas = 17 U Note: The mud data is from the previous night's mud report. 9074338968Unit Phone:Pascal Poupart Cor Solids % pH Wait on cement. Tag cement at 1568' MD. Sw mg/l 22000 - 4-Oct-2013 11:59 PM Current Pump & Flow Data: Max 1.55 @ Mud Data MWD Summary SPP (psi) Gallons/stroke Chlorides Flow In (spm) N/A Morning Report Report # 97 Customer: Well: Area: Location: Rig: Olson #1 Don Jones, Tim McKiernan Time: AK-AM-0900491711 ROP ROP (ft/hr) Olson Creek Kenai Peninsula Borough Job No.: Daily Charges: Total Charges: Cook Inlet Energy Depth 97% Rig Activity: N/A Miller Rig 34 Report For: 24 hr Max 100% Gas In Air Bit # 5 11.4 6.75 10.00 ReedHycalog PDC 10.00 Size 18 6RR (current) 0 91.0 5253' 1909'22 =10,000 Units-Connection - Min Comments 5.6 5253' 10.10 cP RPM Condition 1-3-CT-G-X-I-BT-PP2109' 3344' WOB N/A Avg Conductor Depth in / out ReedHycalog PDC WBM Background 1998' 157' 1500' (max)Trip (max) Mud Type Lst Type 29.7 Cht Silt Average YP (lb/100ft2) 6.75 0.451 54.75 15.0 ml/30min -- - Tuff Cement - Hours C-3 Footage ShClyst $3,997.42 $486,544.58 Tag Cement PV 1235' Tools SperryDrill Lobe API FL 0.451 ECD (ppg) - -- (current) C-1 C-5i Avg to5715' Yesterday's Depth: Current Depth: 24 Hour Progress: Flow In (gpm) Gvl 5715' 5715' 0' Max @ ft Current Date: 0 ----- Gas Summary C-4i C-4n Minimum Depth Size C-5n - - Siltst C-2 17 58 (ppb Eq) MBT 5715' in TFA Density (ppg) out (sec/qt) Viscosity 15 Surface - 45.5 N/A 3344' Chromatograph (ppm) Units* Casing Summary Lithology (%) Set At . Depth Grade - 7.625 -0 Maximum Report By:Logging Engineers:Andrew Bongard/Pascal Poupart - - L-80 Weight ClySs Coal 88 1-1-RR-A-X-I-RR-RIG6ReedHycalog PDC 6.75 0.451 70.95 10.75'' WELL INFORMATION Created On : Feb 04 2016 Customer :Cook Inlet Energy Well Name :Olson Creek #1 Job Number :-XX-0900491711 Rig Name :Miller Rig 34 Field Name :West Side-Cook Inlet Country :USA Survey Report DIRECTIONAL SURVEY DATA Tie-in 0.00 0.00 0.00 0.00 0.00 N 0.00 E (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 3.64 5.12 399.66 14.44 N 0.90 E 14.41 0.56 500.00 4.29 4.39 499.42 21.33 N 1.47 E 21.28 0.65 600.00 4.84 3.92 599.10 29.27 N 2.05 E 29.20 0.55 700.00 5.45 2.22 698.69 38.22 N 2.52 E 38.14 0.63 800.00 6.37 0.81 798.16 48.51 N 2.78 E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1,095.52 88.06 N 1.57 E 87.98 0.79 1200.00 9.83 355.59 1,194.20 104.18 N 0.52 E 104.13 1.09 1300.00 10.86 357.01 1,292.58 122.10 N 0.62 W 122.07 1.06 1400.00 11.96 356.06 1,390.60 141.85 N 1.83 W 141.84 1.12 1500.00 13.67 356.67 1,488.10 163.98 N 3.23 W 164.01 1.72 1600.00 15.57 356.67 1,584.86 189.18 N 4.69 W 189.24 1.90 1699.00 17.62 357.78 1,679.73 217.42 N 6.04 W 217.50 2.10 1740.00 14.30 357.82 1,719.15 228.68 N 6.48 W 228.77 8.11 1770.00 14.04 1.54 1,748.24 236.02 N 6.52 W 236.11 3.15 1800.00 13.67 0.65 1,777.36 243.20 N 6.38 W 243.29 1.44 1830.00 13.52 2.28 1,806.52 250.25 N 6.20 W 250.33 1.38 1860.00 12.94 1.86 1,835.73 257.11 N 5.95 W 257.18 1.96 1890.00 12.55 2.20 1,864.99 263.72 N 5.72 W 263.78 1.33 1920.00 11.99 1.79 1,894.30 270.09 N 5.50 W 270.14 1.87 1950.00 11.48 2.96 1,923.68 276.19 N 5.25 W 276.23 1.87 1980.00 11.08 2.72 1,953.10 282.05 N 4.96 W 282.08 1.35 2010.00 10.77 1.18 1,982.55 287.73 N 4.76 W 287.75 1.41 2040.00 10.20 0.44 2,012.05 293.19 N 4.68 W 293.21 1.95 2070.00 9.59 0.47 2,041.61 298.34 N 4.64 W 298.36 2.03 2101.00 9.00 1.77 2,072.20 303.35 N 4.55 W 303.36 2.03 2131.00 9.05 1.97 2,101.83 308.05 N 4.39 W 308.06 0.21 INSITE V8.3.0 Page 1Job No:-XX-0900491711 Well Name:Olson Creek #1 Survey Report DIRECTIONAL SURVEY DATA (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 2161.00 8.63 2.19 2,131.47 312.66 N 4.23 W 312.66 1.40 2191.00 8.18 3.14 2,161.15 317.04 N 4.02 W 317.03 1.59 2221.00 7.51 4.82 2,190.87 321.12 N 3.74 W 321.11 2.35 2251.00 6.69 5.51 2,220.64 324.82 N 3.41 W 324.79 2.77 2281.00 5.95 6.94 2,250.46 328.10 N 3.05 W 328.06 2.51 2311.00 5.31 6.66 2,280.31 331.02 N 2.71 W 330.97 2.13 2341.00 4.75 6.16 2,310.19 333.63 N 2.41 W 333.57 1.88 2371.00 4.25 7.00 2,340.10 335.97 N 2.14 W 335.90 1.67 2401.00 3.91 8.53 2,370.03 338.08 N 1.86 W 338.01 1.20 2431.00 3.34 11.25 2,399.97 339.95 N 1.53 W 339.87 1.97 2461.00 2.63 13.64 2,429.93 341.48 N 1.20 W 341.38 2.41 2491.00 2.10 16.24 2,459.90 342.67 N 0.89 W 342.57 1.79 2521.00 1.58 16.53 2,489.88 343.60 N 0.61 W 343.48 1.73 2551.00 0.94 27.02 2,519.88 344.21 N 0.38 W 344.09 2.27 2581.00 0.48 74.29 2,549.87 344.46 N 0.15 W 344.34 2.35 2611.00 0.86 128.40 2,579.87 344.36 N 0.15 E 344.22 2.34 2641.00 1.05 136.95 2,609.87 344.01 N 0.51 E 343.87 0.78 2671.00 1.51 145.99 2,639.86 343.49 N 0.92 E 343.33 1.66 2701.00 1.78 147.53 2,669.85 342.77 N 1.39 E 342.60 0.92 2731.00 1.85 149.91 2,699.83 341.95 N 1.88 E 341.78 0.35 2761.00 1.85 148.46 2,729.82 341.12 N 2.38 E 340.93 0.16 2791.00 1.76 150.49 2,759.80 340.31 N 2.86 E 340.10 0.35 2821.00 1.60 147.86 2,789.79 339.55 N 3.31 E 339.33 0.59 2851.00 1.61 151.76 2,819.78 338.82 N 3.73 E 338.60 0.37 2881.00 1.60 148.40 2,849.77 338.09 N 4.15 E 337.86 0.31 2911.00 1.54 147.26 2,879.76 337.40 N 4.59 E 337.15 0.24 3001.00 1.32 158.10 2,969.73 335.42 N 5.63 E 335.14 0.38 3091.00 1.06 157.16 3,059.71 333.69 N 6.34 E 333.39 0.29 3181.00 1.01 147.90 3,149.69 332.24 N 7.09 E 331.93 0.20 3271.00 0.75 150.41 3,239.68 331.06 N 7.80 E 330.72 0.29 3360.00 0.69 157.98 3,328.68 330.06 N 8.29 E 329.71 0.13 3450.00 0.59 155.34 3,418.67 329.13 N 8.69 E 328.77 0.12 3540.00 0.48 150.60 3,508.67 328.38 N 9.07 E 328.01 0.13 3630.00 0.38 136.72 3,598.66 327.84 N 9.46 E 327.46 0.16 3720.00 0.23 141.40 3,688.66 327.48 N 9.77 E 327.09 0.17 3810.00 0.06 269.15 3,778.66 327.34 N 9.84 E 326.95 0.30 3900.00 0.16 268.21 3,868.66 327.33 N 9.67 E 326.95 0.11 3990.00 0.28 322.29 3,958.66 327.50 N 9.41 E 327.13 0.25 4080.00 0.54 308.36 4,048.66 327.94 N 8.94 E 327.58 0.31 4170.00 0.82 299.81 4,138.65 328.52 N 8.05 E 328.18 0.33 4260.00 0.90 308.81 4,228.64 329.29 N 6.94 E 328.98 0.17 4350.00 0.87 302.93 4,318.63 330.10 N 5.81 E 329.82 0.11 4440.00 0.60 252.98 4,408.63 330.33 N 4.79 E 330.08 0.74 4530.00 0.79 186.04 4,498.62 329.58 N 4.27 E 329.34 0.87 4620.00 0.83 183.88 4,588.61 328.31 N 4.16 E 328.08 0.06 INSITE V8.3.0 Page 2Job No:-XX-0900491711 Well Name:Olson Creek #1 Survey Report DIRECTIONAL SURVEY DATA (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 4710.00 0.84 191.03 4,678.60 327.01 N 3.99 E 326.78 0.12 4800.00 0.69 196.51 4,768.59 325.85 N 3.71 E 325.63 0.19 4890.00 0.86 203.21 4,858.58 324.71 N 3.29 E 324.50 0.21 4980.00 0.83 198.31 4,948.58 323.47 N 2.82 E 323.27 0.09 5070.00 0.73 206.00 5,038.57 322.33 N 2.37 E 322.15 0.16 5160.00 0.89 218.26 5,128.56 321.27 N 1.68 E 321.10 0.26 DIRECTIONAL SURVEY DATA NOTES - Calculation based on minimum curvature method. - Survey coordinates relative to well system reference point. - TVD values given relative to drilling measurement point. - Vertical section relative to well head. - Vertical section is computed along a direction of 358.44 degrees (Grid) - A total correction of 18.40 deg from Magnetic north to Grid north has been applied - Horizontal displacement is relative to the well head. - Horizontal displacement (closure) at 5,160.00 feet is 321.27 feet along 0.30 degrees (Grid) WARRANTY HALLIBURTON ENERGY SERVICES, INC. WILL USE ITS BEST EFFORTS TO FURNISH CUSTOMERS WITH ACCURATE INFORMATION AND INTERPRETATIONS THAT ARE PART OF, AND INCIDENT TO, THE SERVICES PROVIDED. HOWEVER, HALLIBURTON ENERGY SERVICES, INC. CANNOT AND DOES NOT WARRANT THE ACCURACY OR CORRECTNESS OF SUCH INFORMATION AND INTERPRETATIONS. UNDER NO CIRCUMSTANCES SHOULD ANY SUCH INFORMATION OR INTERPRETATION BE RELIED UPON AS THE SOLE BASIS FOR ANY DRILLING, COMPLETION, PRODUCTION, OR FINANCIAL DECISION OR ANY PROCEDURE INVOLVING ANY RISK TO THE SAFETY OF ANY DRILLING VENTURE, DRILLING RIG OR ITS CREW OR ANY THIRD PARTY. THE CUSTOMER HAS FULL RESPONSIBILITY FOR ALL DRILLING, COMPLETION, AND PRODUCTION OPERATION. HALLIBURTON ENERGY SERVICES, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SERVICES RENDERED. IN NO EVENT WILL HALLIBURTON ENERGY SERVICES, INC. SERVICES BE LIABLE FOR FAILURE TO OBTAIN ANY PARTICULAR RESULTS OR FOR ANY DAMAGES, INCLUDING, BUT NOT LIMITED TO, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, RESULTING FROM THE USE OF ANY INFORMATION OR INTERPRETATION PROVIDED BY HALLIBURTON ENERGY SERVICES, INC. INSITE V8.3.0 Page 3Job No:-XX-0900491711 Well Name:Olson Creek #1 Survey Report WELL INFORMATION Created On : Feb 04 2016 Customer :Cook Inlet Energy Well Name :Olson Creek #1-PB1 Job Number :-XX-0900491711 Rig Name :Miller Rig 34 Field Name :West Side-Cook Inlet Country :USA Survey Report DIRECTIONAL SURVEY DATA Tie-in 0.00 0.00 0.00 0.00 0.00 N 0.00 E (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 15.30 0.00 0.00 15.30 0.00 N 0.00 E 0.00 0.00 100.00 0.97 358.34 100.00 0.72 N 0.02 W 0.72 1.15 200.00 2.49 4.15 199.95 3.73 N 0.11 E 3.73 1.53 300.00 3.09 3.74 299.83 8.59 N 0.44 E 8.57 0.60 400.00 3.64 5.12 399.66 14.44 N 0.90 E 14.41 0.56 500.00 4.29 4.39 499.42 21.33 N 1.47 E 21.28 0.65 600.00 4.84 3.92 599.10 29.27 N 2.05 E 29.20 0.55 700.00 5.45 2.22 698.69 38.22 N 2.52 E 38.14 0.63 800.00 6.37 0.81 798.16 48.51 N 2.78 E 48.42 0.93 900.00 7.18 358.40 897.46 60.31 N 2.69 E 60.21 0.86 1000.00 7.99 357.73 996.59 73.50 N 2.24 E 73.41 0.81 1100.00 8.77 357.06 1,095.52 88.06 N 1.57 E 87.98 0.79 1200.00 9.83 355.59 1,194.20 104.18 N 0.52 E 104.13 1.09 1300.00 10.86 357.01 1,292.58 122.10 N 0.62 W 122.07 1.06 1400.00 11.96 356.06 1,390.60 141.85 N 1.83 W 141.84 1.12 1500.00 13.67 356.67 1,488.10 163.98 N 3.23 W 164.01 1.72 1600.00 15.57 356.67 1,584.86 189.18 N 4.69 W 189.24 1.90 1700.00 17.64 357.79 1,680.69 217.72 N 6.06 W 217.80 2.09 1800.00 20.13 358.78 1,775.30 250.07 N 7.01 W 250.17 2.51 1850.00 21.23 359.03 1,822.07 267.72 N 7.34 W 267.82 2.21 2037.00 25.78 359.36 1,993.51 342.28 N 8.37 W 342.38 2.44 2067.00 25.49 359.07 2,020.56 355.26 N 8.54 W 355.36 1.05 2097.00 24.87 358.49 2,047.71 368.02 N 8.82 W 368.13 2.23 2127.00 24.16 357.87 2,075.00 380.46 N 9.21 W 380.57 2.53 2157.00 23.36 357.19 2,102.46 392.54 N 9.73 W 392.66 2.82 2187.00 22.67 357.07 2,130.07 404.25 N 10.32 W 404.39 2.29 2217.00 22.21 357.14 2,157.80 415.69 N 10.90 W 415.83 1.53 2247.00 21.67 356.74 2,185.63 426.88 N 11.49 W 427.04 1.88 2277.00 21.06 356.03 2,213.56 437.79 N 12.18 W 437.96 2.19 2307.00 20.33 355.49 2,241.63 448.36 N 12.96 W 448.55 2.54 2337.00 19.61 355.16 2,269.82 458.58 N 13.80 W 458.78 2.42 2367.00 18.96 354.46 2,298.14 468.44 N 14.69 W 468.67 2.29 INSITE V8.3.0 Page 1Job No:-XX-0900491711 Well Name:Olson Creek #1-PB1 Survey Report DIRECTIONAL SURVEY DATA (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 2397.00 18.38 354.08 2,326.56 478.00 N 15.65 W 478.25 1.98 2427.00 17.74 353.40 2,355.08 487.24 N 16.66 W 487.52 2.24 2457.00 17.46 352.63 2,383.68 496.25 N 17.77 W 496.55 1.21 2487.00 17.18 352.07 2,412.32 505.10 N 18.96 W 505.43 1.09 2517.00 16.71 352.02 2,441.02 513.76 N 20.17 W 514.12 1.59 2547.00 16.04 352.00 2,469.80 522.13 N 21.34 W 522.52 2.24 2577.00 15.40 351.31 2,498.68 530.18 N 22.52 W 530.59 2.19 2607.00 14.83 350.79 2,527.64 537.91 N 23.74 W 538.35 1.95 2637.00 14.33 350.36 2,556.67 545.36 N 24.97 W 545.84 1.70 2667.00 13.66 350.14 2,585.78 552.51 N 26.20 W 553.02 2.25 2697.00 13.06 350.36 2,614.97 559.34 N 27.38 W 559.88 2.00 2727.00 12.47 349.53 2,644.23 565.87 N 28.53 W 566.44 2.05 2757.00 11.98 348.91 2,673.55 572.11 N 29.72 W 572.71 1.71 2787.00 11.39 347.68 2,702.93 578.06 N 30.95 W 578.69 2.13 2817.00 10.65 346.67 2,732.37 583.65 N 32.22 W 584.31 2.56 2847.00 10.37 346.91 2,761.87 588.98 N 33.47 W 589.67 0.92 2877.00 9.95 344.81 2,791.40 594.11 N 34.76 W 594.83 1.89 2907.00 9.28 343.93 2,820.98 598.93 N 36.11 W 599.69 2.27 2937.00 9.02 342.33 2,850.59 603.50 N 37.49 W 604.30 1.21 2967.00 8.51 341.65 2,880.24 607.85 N 38.91 W 608.68 1.73 2997.00 8.17 339.79 2,909.93 611.96 N 40.34 W 612.83 1.45 3027.00 7.73 338.53 2,939.64 615.84 N 41.82 W 616.75 1.60 3057.00 7.25 336.78 2,969.38 619.45 N 43.30 W 620.40 1.75 3087.00 6.88 336.06 2,999.15 622.83 N 44.78 W 623.82 1.28 3117.00 6.25 336.31 3,028.96 625.97 N 46.16 W 627.00 2.11 3147.00 5.63 337.62 3,058.80 628.83 N 47.38 W 629.89 2.10 3177.00 5.05 334.64 3,088.67 631.38 N 48.51 W 632.47 2.15 3207.00 4.53 335.51 3,118.56 633.66 N 49.56 W 634.77 1.76 3237.00 4.01 334.75 3,148.48 635.68 N 50.50 W 636.82 1.73 3267.00 3.17 331.76 3,178.42 637.36 N 51.34 W 638.52 2.88 3297.00 2.22 319.93 3,208.39 638.54 N 52.11 W 639.72 3.64 3327.00 1.48 306.25 3,238.37 639.21 N 52.80 W 640.41 2.87 3357.00 0.96 304.33 3,268.36 639.58 N 53.32 W 640.80 1.74 3387.00 1.07 271.73 3,298.36 639.73 N 53.80 W 640.96 1.94 3417.00 0.78 256.97 3,328.35 639.70 N 54.28 W 640.94 1.26 3447.00 1.22 220.00 3,358.35 639.40 N 54.69 W 640.66 2.54 3477.00 1.21 214.31 3,388.34 638.90 N 55.07 W 640.16 0.41 3507.00 1.73 202.34 3,418.33 638.22 N 55.42 W 639.49 2.01 3537.00 2.35 204.66 3,448.31 637.24 N 55.85 W 638.52 2.09 3567.00 2.79 199.37 3,478.28 635.99 N 56.35 W 637.29 1.65 3597.00 2.72 195.92 3,508.25 634.62 N 56.79 W 635.93 0.60 3627.00 3.01 195.65 3,538.21 633.18 N 57.20 W 634.50 1.00 3657.00 2.96 189.59 3,568.17 631.66 N 57.54 W 632.99 1.07 3687.00 2.97 189.55 3,598.13 630.13 N 57.80 W 631.47 0.03 3717.00 3.10 188.64 3,628.09 628.56 N 58.05 W 629.91 0.48 INSITE V8.3.0 Page 2Job No:-XX-0900491711 Well Name:Olson Creek #1-PB1 Survey Report DIRECTIONAL SURVEY DATA (ft) Measured Depth DoglegVertical SectionDeparture (ft) Latitude (ft) Vertical Depth (deg) DirectionInclination (deg)(ft)(ft)(°/100') 3747.00 3.39 183.53 3,658.04 626.87 N 58.22 W 628.22 1.36 3777.00 3.55 182.43 3,687.99 625.06 N 58.32 W 626.42 0.56 3807.00 3.86 177.55 3,717.92 623.12 N 58.31 W 624.48 1.48 3837.00 3.89 181.36 3,747.85 621.10 N 58.29 W 622.45 0.87 3867.00 4.14 182.87 3,777.78 619.00 N 58.37 W 620.36 0.88 3897.00 3.80 181.76 3,807.71 616.93 N 58.46 W 618.29 1.15 3927.00 3.88 185.24 3,837.64 614.92 N 58.58 W 616.29 0.82 3957.00 3.99 185.50 3,867.57 612.87 N 58.77 W 614.24 0.38 3987.00 3.84 184.27 3,897.50 610.83 N 58.95 W 612.21 0.58 4062.00 4.04 185.23 3,972.32 605.69 N 59.38 W 607.09 0.28 4152.00 3.95 185.28 4,062.11 599.46 N 59.95 W 600.87 0.10 4242.00 3.72 188.92 4,151.90 593.49 N 60.69 W 594.92 0.37 4332.00 3.85 189.60 4,241.71 587.62 N 61.64 W 589.08 0.16 4422.00 3.69 196.76 4,331.51 581.87 N 62.98 W 583.37 0.55 4512.00 3.69 198.62 4,421.33 576.35 N 64.74 W 577.90 0.13 4602.00 3.63 203.62 4,511.14 570.99 N 66.81 W 572.60 0.36 4647.00 3.72 198.08 4,556.05 568.30 N 67.84 W 569.94 0.81 4723.00 3.65 201.10 4,631.89 563.70 N 69.47 W 565.38 0.27 4813.00 3.99 206.58 4,721.69 558.22 N 71.90 W 559.98 0.55 4903.00 4.15 204.41 4,811.47 552.46 N 74.65 W 554.28 0.25 4993.00 4.23 210.96 4,901.23 546.64 N 77.71 W 548.55 0.54 5083.00 4.62 208.15 4,990.96 540.60 N 81.13 W 542.61 0.49 5173.00 4.70 210.62 5,080.66 534.23 N 84.71 W 536.34 0.24 5263.00 5.04 215.03 5,170.34 527.83 N 88.86 W 530.05 0.56 5353.00 5.08 214.92 5,259.99 521.32 N 93.41 W 523.67 0.05 5443.00 5.42 219.32 5,349.61 514.77 N 98.38 W 517.25 0.59 5533.00 5.35 218.48 5,439.21 508.19 N 103.69 W 510.83 0.12 5642.00 5.35 218.48 5,547.74 500.24 N 110.01 W 503.05 0.00 DIRECTIONAL SURVEY DATA NOTES - Calculation based on minimum curvature method. - Survey coordinates relative to well system reference point. - TVD values given relative to drilling measurement point. - Vertical section relative to well head. - Vertical section is computed along a direction of 358.44 degrees (Grid) - A total correction of 18.40 deg from Magnetic north to Grid north has been applied - Horizontal displacement is relative to the well head. - Horizontal displacement (closure) at 5,642.00 feet is 512.19 feet along 347.60 degrees (Grid) INSITE V8.3.0 Page 3Job No:-XX-0900491711 Well Name:Olson Creek #1-PB1 Survey Report WARRANTY HALLIBURTON ENERGY SERVICES, INC. WILL USE ITS BEST EFFORTS TO FURNISH CUSTOMERS WITH ACCURATE INFORMATION AND INTERPRETATIONS THAT ARE PART OF, AND INCIDENT TO, THE SERVICES PROVIDED. HOWEVER, HALLIBURTON ENERGY SERVICES, INC. CANNOT AND DOES NOT WARRANT THE ACCURACY OR CORRECTNESS OF SUCH INFORMATION AND INTERPRETATIONS. UNDER NO CIRCUMSTANCES SHOULD ANY SUCH INFORMATION OR INTERPRETATION BE RELIED UPON AS THE SOLE BASIS FOR ANY DRILLING, COMPLETION, PRODUCTION, OR FINANCIAL DECISION OR ANY PROCEDURE INVOLVING ANY RISK TO THE SAFETY OF ANY DRILLING VENTURE, DRILLING RIG OR ITS CREW OR ANY THIRD PARTY. THE CUSTOMER HAS FULL RESPONSIBILITY FOR ALL DRILLING, COMPLETION, AND PRODUCTION OPERATION. HALLIBURTON ENERGY SERVICES, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SERVICES RENDERED. IN NO EVENT WILL HALLIBURTON ENERGY SERVICES, INC. SERVICES BE LIABLE FOR FAILURE TO OBTAIN ANY PARTICULAR RESULTS OR FOR ANY DAMAGES, INCLUDING, BUT NOT LIMITED TO, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, RESULTING FROM THE USE OF ANY INFORMATION OR INTERPRETATION PROVIDED BY HALLIBURTON ENERGY SERVICES, INC. INSITE V8.3.0 Page 4Job No:-XX-0900491711 Well Name:Olson Creek #1-PB1 Survey Report
