Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
212-028
• , • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil Gas❑ SPLUG❑ Other 0 Abandoned o ' Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development 0 Exploratory 0 GINJ 0 WINJ 0 WAG7 WDSPL❑ No.of Completions: Service 0 Stratigraphic Test 0 2.Operator Name: 6.Date Comp.,Syosp.n r74,1(0 14.Permit to Drill Number/ Sundry: COOK INLET ENERGY • Aband.j 6441 212-028/313-607 • 3.Address: 7. Date Spudded: 15.API Number: 601 W 5TH AVE,SUITE 301,ANCHORAGE,AK 99501 5/19/2012 50-283-20163-00-00 • 4a.Location of Well(Governmental Section): 8. Date TD Reached: 16.Well Name and Number: Surface: 2081'FNL 1805'FEL SEC 12 T14N R10W SM AK 6/19/2012 OTTER#1 Top of Productive Interval: 9.Ref Elevations: KB: 177.7ft 17. Field/Pool(s): 2081'FNL 1805'FEL SEC 12 T14N R10W SM AK GL: 160ft BF: EXPLORATORY 1' Total Depth: 2081'FNL 1805'FEL SEC 12 T14N R10W SM AK 10.Plug Back Depth MD/TVD: 18.Property Designation: surface • ADL 390579 r 4b.Location of Well(State Base Plane Coordinates,NAD 27): 11.Total Depth MD/TVD: 19.Land Use Permit: Surface: x- 327439.01 y- 2675720.301 Zone- 4 5686'MD/5614'TVD ' N/A TPI: x- y- Zone- 12.SSSV Depth MD/TVD: 20.Thickness of Permafrost MD/TVD: Total Depth: x- 327379.14 y- 2676194.62 Zone- 4 N/A N/A 5.Directional or Inclination Survey: Yes 0 (attached) No 0 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) N/A 22.Logs Obtained: List all logs run and,pursuant to AS 31.05.030 and 20 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 RECEIVED scraps) APR Val? SEP 1 6 2016 23. CASING,LINER AND CEMENTING RECORD AOGCC WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 10 3/4" 45.5# L80 surf 157' surf 157 driven na 0 7" 23# J55 surf 2096' surf 2095' 8.5" 96.9bbI, 12ppg lead, 0 30bbI, 13.5ppg tail 4 1/2" 11.6# L80 surf 5637' surf 5604' 6 1/8" 67bbls 13.5ppg 0 24.Open to production or injection? Yes o No p 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): 2.375" 4679' 4551'MD/4481'TVD AGANI)oN Y `` f' 26.ACID,FRACTURE,CEMENT SQUEEZE,ETC. RJ%(p Was hydraulic fracturing used during completion? Yes 0 No❑ VERIFIED D" Per 20 AAC 25.283(i)(2)attach electronic and printed information L.I-- DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate - _ Form 10-407evis d 11/2015 CONTINUED ON PAGE 2 Submit ORIGINIAL only IL! T 1 If '3 Aril , - 12.--r‘ -t RBDMS Lt- SEP 1 9 2016 0 ' • 28.CORE DATA Conventional Core(s): Yes 0 No 0 Sidewall Cores: Yes 0 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 0 No 0 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: Wellbore Schematic,Daily Report 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: cperry@glacieroil.com Printed Name: ConradP' Title: Drilling Manager Signature: Phone: 907-727-7404 Date: 9 /6. /" INSTRUCTIONS General: This form and t ;' ired attachm s rovide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion r rt and 10-404 well sundry report when the downhole well design is changed.All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC,no matter when the analyses are conducted. Item la: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated.Each segregated pool is a completion. Item 1b: Well Class-Service wells:Gas Injection,Water Injection,Water-Alternating-Gas Injection,Salt Water Disposal,Water Supply for Injection, Observation,or Other. Item 4b: TPI(Top of Producing Interval). Item 9: The Kelly Bushing,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 fr • RECEIVED SEP 162016 AOGGC GLACIER September 15, 2016 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage,Alaska 99501 RE: Well Completion Report- Otter#1 Cook Inlet Energy: 50-283-20163-00-00 / PTD 212-028 Dear Ms. Foerster, Cook Inlet Energy hereby submits the Well Completion Report for Otter#1 abandonment. Upon review of the Otter#1 and Otter#1A (PTD 213-164)wells,it has been determined that Otter#1 was permanently abandoned during the Otter#1A abandonment. Otter#1 was Auo intended to be abandoned during the cementing of the Otter#1A completion but due to .t wellbore problems, an unconventional completion was required (Sundry 313-640).The ( 313 -�S17 unconventional completion also included cementing the completion in place but circulation through the perforations was unsuccessful, and therefore, prevented the abandonment of Otter#1. During the abandonment of Otter#1A,the down squeeze method was utilized to place cement in the 2-7/8"x 4-1/2" annulus through the sliding sleeve at 2530', abandoning the Otter#1 well. If you have any questions, please contact me at 907.727.7404. Sincerely, ii Conrad Pe kr, SVP-Drill ng Cook Inlet Energy, LLC 601 W. 5th Avenue STE 310 Anchorage,AK 99501 1 • • • Cook Inlet Energy_ Otter #1 P&A Actual 06/10/2016 Conductor: 10 3/4", 45.5#, L-80, BTC (ID = 9.95") Set @157' MD/TVD �N Y *,.• k.T� I. N Surface: 8 1/2" Hole r 7", 23#, J-55, LTC (ID = 6.151") Set@ 2096' MD/TVD str& x Perforation Intervals: rt^ Zone: 1 = 258' 3706'-3714'= 8' , 3800'-3804'= 4' 22' IL3852'-3854'= 2' '',',..11 ',. 21 bbls 15.4 pp9 Cement 3916'-3920'= 4' Sbi 4500'to 2530' in �' 3960'-3964'= 4' e F : 2-7/8"x 4-1/2" annulus i� During P&A of Otter#1A a b. 2-3/8", 4.7#, J55, EUE r .: Tubing (Coupling OD = 3.063") .a.: PZone: 2= 252' 0,-3 424042488' xLfA:•;;- n���.•1--., Za i3 18' 4270'-4274'= 4' r 3 <;� L�,,,, g o.) 4403'-4406'= 3' f"..' • '' sIII �'I c� 4489'-4492'= 3' �� ,. Apr ,, .;,,.a; ;h� SideTrack @ 4400' MD CnNr S J Zone: 3= 569' ea Permanent Packer @ 4551' MD/TVD e ' .IOW 4710'-4725'= 15' i! ,'>= XN nipple @ 4648' MD/TVD 4770'-4773'= 3' N Mule Shoe @ 4679' MD/TVD 4986'-4994'= 8' 5014'-5018'= 4' ",:,.,. - a 4 1/2", 11.6#, WT-80, LTC (Drift ID =3.875") 5094'-5150'=56'127' TD @ 5637' MD /5604' TVD 5166'-5173'= 7' ' :.u.\< 5198'-5208'= 10' Production: 6 1/8" Hole 5269'-5279'= 10' r Daily Drilling Report 'Cook Inlet Energy_ Telt: Consultant: Tell: UWI: 60.283-20163-01-00 WELL: Otter#1A DATE: 2016.06.06 Remarks: JSA with Crews,Trouble shoot SLB recording equip&transducers 1015 hrs:Test lines to 5000 psi 1045 hrs:Establish injection rate down tubing,thru production sliding sleeve,into perfs at 3706'to 3964',w/21 bbls away at 1.50 bpm 2750 psi, pressure broke down to 2500 psi 1115:Pump 21 bbls of 15.4 ppg class"A"Cement down thru Prod.Perls,place foam ball into tree below wing valve,pump thru wing valve displacing 9.9 bbls with fresh water,shut in well CIP at 1205 hrs,2505 psi 1340 hrs: Move lines to Outer Annulus,test lines to 5000 psi 1400 hrs: Estabish Injection rate 2100 psi broke down to 1830 psi, at 1.25 bpm,pumped 3 bbls, 1415 hrs: Mix and pump 15.4 ppg cement down Outer Annulus,pumped 42 bbls and Shut in at 2100 psi 1500hrs 1515 hrs: Rig up PWS,made mutitple runs to open Sliding Sleeve at 2429'to Inner Annulus 1800 hrs: Rig down PWS 1830 hrs: Move lines to wing of Prod tree,pump 3 bbls of fresh water to confirm Sleeve is open. (Good returns).Test lines to 2000 psi,pump 45 bbls of 15.4 ppg cement,returns weighed in at 14.2 ppg when we ran out of cement. at 650 psi,CIP at 1910 hrs,shut down SLB pumps 1930hrs: Wash up SLB equipment and flush lines into open top tank. Total we had 119 bbls of fluid in open top tank and filled 2-Plywood boxes 3- layers of liner Inside boxes. 1030 hrs back at camp with SLB&PWS equipment Time from Time to Hours Code Comments I , Total Version 1422Wellman 9-Resource EnergySolutions Inc (403)245-0220 wwwresourceene�rsolufions.com June 05 2076 Page 2 of 2 • • o 1 0 o N o a ') A • N N • 1 N O .� I (0 O O D. 4�—, N Z V• c c0) �I a)to �I❑• 'O NI NI ❑ ❑ 'v y Co c6 rx x Lu M Uop _ I a Wcn WLu a o oo W2 1— W a w :° m 3 • U U w ❑ W W T in D w w❑ w❑ Owl OUO T T -a •4_ x ce U U a) 0 a ft tr w W O w E E L L o o 0 0 � Z � a 2 2 ot$ c w C d1 os (` (` W . W . 0I 0I . CC . CC iI a $U a) c a) a)m o ' ~ N ~ Z Z )l0 )10 Q — m C7 U' O trU �U � — tr— �U U Co a o O ❑ it 0 U w O I w w W w W cn W cn W ' W co m co a�O� a��I a H � F- FOZI HZOI �ZI HZ' Q 010 CC a) �m �U CD O O 00 00 O� OF OZ OZ O c a) H F Co0- Ei 0 m O w2 wz ai •ai ai ai I ai I ai( ai( ai O I)O 1 r 0iL F H as v, ❑U ❑cn it it it iLZ LL — ILO ILO LLH iLI— N 0- E 0 0 0 ❑ a00 0 w 0 0 0 c.) n1 0 cnl 0 d c.)0- 0 0 00 ✓ z E 'E O O c4 'E Q 'E> 'E •E •E •E > E > E 2 'E 'E 2 •E J co p) O O N N QO❑ O Q O O O O= O 2 0 0 0 0 2a O❑ r -1 O V 0 0 0 UO U � t U Um Um UU UU U Z Z (i) J a) N N I.2 m�I a)�I a) a) a) a)NI a)�I a)�I a)NI a)(NI _a)CJ1 C c• • E W N N 0 W W W W W W W W W W W H O O Z V C a) N_ N_ N_ N_ N_ N_ N_ N_ _N N_ N_ N_ N_ a w Y j l 0 O O O O O O O O O o O O W W •03 N N N N N N N N N N N N N O d',,� M M M co co co co co co co co co Z ca ',.O) co co co co co co oo co co 00 co co 1, 0 0- W p In a) C).... C a� o v < 0 00 0 Q co a co ra 10 J O. 0 Ci. 21 ! co0 55 4. E c o GO U co V) o o O O O O ti E N O a ai U N U 0) c 3 0 O Q > R' Z 2II a m '°1 pro N w 0 0 o 0 J2 2 N _ n w d Z 0, ns x 3 z- U) J M i0) ct c.9 Q 2 0 'U �� X Q a E 0 m N • E m Co Co .— �° 0 (n CO u) Z 0 M coo a) E ix �a co Co m CZ ra wa v OS m CO a) a, Co 'O "0 Ls CO CO Co fo Co @ Co @ co Co Co • `r E E'❑ ac0) ac6) 0 0 0 ❑ ❑ ❑ ❑ 0 0 0 0 0 Lc) 1 1 rtZ o 2 2 i (Cl (Cl co m to co co co co co Co cy, m O) -O IT ' mm mpp) p) mapO I C ❑ J J .E ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ O 0 ` co > 0 JC) SD O (h( of M M cn M M M M M M M MI ` N Co O O 6) O) O) O) O) O O) O) O) O) O) O) O) O F F d 0 r E co co 6) O) O) O) O) O) O) Q) a) O) O) O) m N2 , 0 O 2 W Co Z NNNNNNNNNNNNNNN O Q c m —77 Z 0 O w LL O coO ',. C ,�-0 0 O co 0 d — D O C.., "' re I Z w o 2 0 0 0 0 0 0 0 0 0 0 0 0 0 -I I C w ww ❑ w ❑ ww ww ❑ ¢ w o °a o ° ° w LU • • 0 o o 0 N O • O • w N co co o O N a 77 N -p .,w-_, a t• w w Ci 0 N ' O �� a'fli co D 0 0 W Ci OW U) U) W a) • W W H H :� H '• T o 0 0 w w 0 p •- .m 0 'm 0 'm 4 'CU 0 , "mom m0 m0 m0 m c cf. LU LU CL CL ce ix iii 6 0 Zp p I I m m N ( co (N No NN c a c a N a c a F. `-I� �I� ‘-c) ‘-0�IUI —Im �Im ac) aa)) ' ' c. , . ' in , 'v , ib , io , ib , m Q W I W I W Z W Z W W W w I.L * * #co *M *0 *n *O_ *O *O It O hZ I—Z I— ° I— ' I—� ILLI _ a) N- NN N� a)- a)_ 4-)NI a)N 43 NI NN co I—N I—N H I H I � I i- I a) a) v v NI z NI v NI =NI =NI V NI V NI V NI V NI < 0z1 0zI 0U 00 00 00 (0 " 0 0" O— O— O— 0" 0" 0" 0" 0— C� z z z Z (U (U o 0 0 0 0 0 0 0 0 _ 60 N O N O a)O a)p a)O m as 4) a)N 6N 4)N_ 604 a)N 4)N 4)N 6N a)N LL H I.L I Eco LL co E U) LL U) 0 0_ LL LL� LL N LL N LL N LL N LLA LL N it N it N 0 90 UD U; U; 9W U; 9 m 909 g g0 g0 90 -0 00 -0 -0 -0 -0 O > 'c c c c c c c— .Co 'c 'c I 'c I 'c I c I c I c I c I c I c I w }° : 00 00 oQ oQ oQ oQ 2. o f 2 o= o -c o -c o-c o-c o -c of o-c o -c w z z 2 w 0 0 0 0 0 0 0 0 0 0 to i%) ..t.. ..0 � a va � a � a � a � a � a � a � a 0 a)NI a�NI a�NI a�NI a�NI m NI m Q a� a� a� co a� a) 92 a) m 0Q) 0 a) 92 a) 0 y 0 a) IX • c iw; w.- w; w ; w.- w; ED-J ED:E w woc Di cc El cc woc woc ED cc 5]cc woc di cc ce O W 5 N N_ N_ N_ N N N_ N N N N N_ N_ N_ N N_ N_ N a. W U O o 0 0 o O o o O o O O O o o O o 0 NN N N N N N N N N N N N N N N N N W W M M M M M M M M M M M M ,, M M M c,c,,,, z co co co c0 co co coW W co co co co co co co co W 2 W o (nc 0- a• V c°) 9 Z0 CO Q a`) z U7 0 a m a ° u) co C 22 0 O N / � , E V N U o .) Qmt a N O M� nCV I W n �_ ,- a) I V/ W 0 Q0 O ° I I— Q15 1 o a 0 zo d U z I m a) m m co a) a) a) m m m m a) co 2, m ns as • v 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ts; a) COa) CO a) Co CO CO CO CO a) COCOCOas a) CO CO w .-' .-• w w w w w w .. ... O 5 m rn o) m m o) m o) a o) 5 o) o) m m o 0110 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a0 > M co co co M M V m• m• m• V V V "7 7 . V Tr _ O) m 0) 0) O) O) 0) 0) O) O 0) O O O) O) O O O) O O) O) 01 O) O) O) C) O) O) O) O) O) O) O) O) O) C) O) N _ _ _ ✓ N N N N N N N N N N N N N N N N N N N HE O 0co o Lr) C) 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 F.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 d 0. 2 W W W W W W W W W W W W W W W W W W • • C o 0 N o ON M N CO 0 c z \ZipI NC; 0 mai 0 N 5 , LI., ' � o 'O 0 0 0 0 V 0 '0 'O 0 '� O a >.a T >.OTa TO >, >.a >.2 Ta Ta >.a Ta >.a T T 4 in .O 0 .54) 0' 0 .5N. Wt, t0 N to^ Weo t0 n3 to^ f6 d. t6 N WIfoo O 0 0 0m 0v 0u ow 0 — am 0w 0m Dc 0w ow 0m 0m ow 0 0 It Z I It IN Ito It IC IM IV It 10 I- k- Im 100 k- IN It it N a N a N N N N N a N CO N M N CO N a N Cl N.1 N.1 N N ,r N co NU) N a N O_ E[ �U)• eU• � n �h � U) lib e' i+) � - I :4. � ' Vic, �O) o � � i1) � U) I I, . N � N Q O O Ti CD m iiM M M ::,7; iim Tis Tiv u) dao 1im ii CD stn ITtn N CO (o O M � � CD OO N N NN NN NN NN NN NN NM NM NM NM NM N7 N N V N.1NO NLA 43 in W V(.4 =N =N 0c.4 =04 =04 VO4 =N 0N =N V NI =N 0N VN =N 0N VN =N I 0 OZSO OZSO O5 OZS O.O OO OZSO OO OO OO OTSO OZS OZS OO OC OZS OO OC N N ON ON WN WN WN WN WN WN WN ON MN ON ON WN WN WN WN EPs LL N E2 LLCM LL C itc81 LEE E8 E8 LL C LL O mg ES LL O LL e- LL N Lt") W 7 N ' V O PE PE PE P8 P8 .08 V E PE PE PE PE PE p O U Q p O U C Pg () 7 '. C IE IE IE IE 1E IE IE 1E IE IE 1E IE IE 1E 1E IE 1E I J cu2t Ot Ot Ot Ot Ot Pt Ot Ot Ot Pt Ot Ot Ot Ot Ot Pt Ot J O O O O O O O O O O O O O O O O O O I". to 0a 0a 0a 0a 0o 0o_ 0a 0o 0o 0o 0a 0a 0o. 0a 0o. 00. 0a 0o. � a� � a) y a) � a� � m � a) � a) � m � a) y a) y to � a) � a) � a) � m � m � a� y m 0 Ce (� N 65 o ED 0C WcC WoC WoC EL or WoC WoC ED or WK ED or ED or ED or DJ or ED or DJ or EI or G3 cc 0 ` ll.I N N N N N N N N N N N N N N N N N N CL W � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N 0 N N N N N N N N N N N N N N N N N N LU 1— w M M co M M co M M co co M M M M M co M Z 00 00 00 00 co co co 00 00 00 00 co0O 00 co co 00 00 W o () ' V V 0 Z 8 ICCO N 7 J a :, A o �, I.i. to a 2r O 01 a) O a a vN I o J I M 00a I-- r N I O 2 IZZ N CO i....; n - 0) CO o `a o .• ' r N I a O Q Z E Q ii U to Z to co co co co co to co o) o) co to co o) to co m m m m co co co co m m co is m co co m m m co m m • v ''0 0 0 0 0 0 0 o 0 0 O 0 a 0 0 0 0 0 co m to to co to «s o) as a m co o) to m .co ca m .co Eh cn co co CD Eh cn co cn co Eh cn cn Eh cn co Eh C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 > Ni- . . - - . - Ni- . . - - . - v v . v N H m m m m m m m m m m m m m m m m m m 1 O _) _m _) m m _) m m _) _) _) m m m m m m m N N N N N N N N N N N N N N N N N N N N 5. G CO c co w '0 U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 E 0 y 0 ,0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 j EL 2 '1 LL LL W LL LL LL LJ! LL LL LL LL LL LL LL LL LL LL LL 111 • o o 0 O ,, N O 0,- es ,M N N N CD O '7 d z '1 O Ti Ti • N y Z v N D • a . . LL x LL X O O J w m 0 m -p J A N T >, >, >,a >,0. T >, >3 0 2 0 E 8833 m b (0 (0 (0 a3 (o aS CO CO . • x• x J J 0 0 a) a) 0 0 C 0 0 0 0 0 ow 0,� 0 0 w •• a p v 0 0 > > c c N 2 I� 1-p It to Io I-o ' 'E x -a (I) co 1— F W W Z N a h a N a N Lf) N I() N O_ N a N 0. a -8 'O t E E I I I p. E. IN • IN oN eN oO ' <O COco Ti co . f0 'O E N N_ N N_ N N_ N_ N N N N r TT 0 IT 0 TT 0 Ti c) IT co (I) Y.N43°I 0NI 0N1 0NI 0N1 Y.NI 0NI 43=NI CC W 43 M .0 = YO. 0 v = Y.+ 0 0`c5 43 43 43 80• 80 a• H ,- Q Oa- 05 O� Oa- Oe- O3- Oa- Oa- 0 0 0 0 O 0 0 0 0 0 0 0000 . a)N N N N N a)N a)N N N a)N •N N a) a) a) a) a) a) a) a) m a) a) a) N N N a)m ILL W W LL LL ER W N W N W LL LL W LL LL LL LL W W LL ILL w W ce LL w U) V O oO ow ow ow 0(0 oc0 0 p 0 0 0 0 0 0 0 U 0 U 0 o= U= 00 ✓ c 1 c 1 c I 'c I 'c I 'c I t I c I t c 'c c c c 'c 'c 'c 'c 'c c c c i m , 2p 2 2 of of 2t or of 0 0 0 0 0 0 0 0 0 0 0 03 2 oQ -J w i) a to to to to to to to . n o o a o o v o 0 0 o 6 m tZ N - a) a a) y a) a a� a a) a a� a a� a . a a) a) a) a) a) a) a) a) a) a) a) . c a) c a�} LI. • c mw mw LT-ice W ft mw mix W ce LULU W W W W W W W W W W WILL w, W 0 OZV N N N N N N N N N N N N N N N N N N N N N N 0.. W o 0 E. 0 0 0 0 a a 0 a o O o o O O o 0 0 0 N N N N N N N N N N N N N N N N N N N N N N W W M M M (M M M M M M M M M M (M M M M M M M M M ce J00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 (0 CO OO 00 00 00 00 Z W O u) °- `)-- L.) yV 0 0 Z w co Q1 CO7 J o ca aw 22 r Oa) o N aE V N U o Q ca P. N 5r O co n T a) Ci) CL W as0 Q O O r N Q 8 a z E o G £ UI z as as m as m m m as m CO CO CO CO m CO CO CO m CO CO as CO a) m co co co is m as co as co as co as co CO CO CO m CO CO CO CO 3 v ,0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (o as as as co co as co (o co co as co as as as co co m CO co s m • rn 'a) .2 'a) 2 _� .� .rn 'rn 'rn 'rn 'rn 'rn 'rn 'rn 'rn 'rn .� .� .� .a) .to o o0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 co N > V Ti- Ti- V 7 V .4- . d. . . . . . V "4- V V V o ~ O) a) 80) a) C)) O) C)) C)) a 80) C))) 8a) C)) 6) 6) 80) O) a) C)) Oa) C)) Q°)) C71 N N N N N N N N N N N N N N N N N N N N N N N F. 0 0 p ca0oU w to 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C-7 E0 m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 d 2 W W W W W LU LU LU LU LU LU LU W LU W LU W LU LU W W W • • oo o _ o c 0 0 0 0 O O • eq 0 0 c,- 9 O O O J J J o o SI O O N 2 c, to• Z Z z z 0 0 0 N N C9 0 z z o 0 as N 0 0 0 0— 0 c .c .c OJ 0J 0 0 0 aa) ` OJ 0 a co 2 N z Z Q Q Q 0U 0U 0V m `m 0 0 Z Q Q U) 0 Z w o J J 2' X X 0 0 0 0 0 2 2 J fx cc .@ Ce 2 J T to m 12 0 0 0 ,-. NO 0 a 0 0 OO I0 0 LL LL LL J J J * *k0 0 0 LL LL Z 'N N N N N N N N O O N N N N N O Q 0 0 o w N N � a ICCI QI W re 12 CC W W CK CC CY 12I Q CC o CL CeI Iw w W w w LU W w 3 3 LU LU wZ W w 0 J z H z H Z H H H H H H 0 o I- I- H_ H H d IL IL co H N Hu, H H H H H H L t H H H N H H `-- H H ,_ Q 0D 0D 0 0� 0 0 0 O F U) U) 0 0 0D 0 0 Q ct O 00 (? ai hi g gi a ai n ai a ai a 6 a gi a iii ai ai hi hi ai w ai w J H ai ai Il U) U_U) lli iu.i Ili Ili LLi is= ii it it is= it co ili iii ,@., H it LLU) (O oU gU 0 9U p p p U g g g oU oU g0 v gU C) 3 •E 'C ' o E z C z E z E z E z 'E z 'E 'C 'E w 'E.� '. .E z .0 (-aO E z E .= C f J .co OQ OQ O— O— O— O— O— O— O O O+_'• O+_'OQ O— O— O N O +• OQ F.. J U UZ t U' UN U14 i)`- UN r)in U U U= v=. UZ UN t.)L° a O U= t IX >. N} O)} O)0 O)O N0 O)0 O)0 Cs O) as O)O O)O O)} O)0 O)0 3 QS O m w0 w0 OD 2E EJ 2E ED 2E ED 2E ED 2E ED 2E w w w? w ? w0 ED 2E ED 2E 2E N w? wO O W 3 I N N_ N_ N N N N N_ N_ N_ N N N N_ N_ N CO O CL W U O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N W W CO Cr) () co co co M () () M () co co co M M N N IX J00 O O 00 W 00 00 00 00 00 00 00 00 O 00 00 N N Z W O ,I O. 4- i� p,. 4 O� O� (I. 'II) 0 0o z w w o ▪ 1,5 O O J a v co O �, a � C C O_ . O c G _� I O N a 01 E V N U o oQ a N I 5� G N W W 0 Q C I— O Q a Z of d 0 7.) c co O Z m U) (O co (O (O (O CO CO CO CO @ CO CO CO CO CO _C NCO CO 11 d CO O) 0) @ co co co co 03 co co co O) CO co LL -o co co (O 0 0 v 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 N _ 7, m m m CO m CO m CO CO CO CO m m m m �0 2 o is 0 0 0 0 0 0 0 0 O O O 0 0 0 0 0 Et J 0 0 coo > . - a' V C' V V V V V V . V 7 N o H O) O) OC) C) O) O) 00) O) C) O) O) C) O) C) O) C) O) O) N •,--) _ N N N N N N N N N N N N N N N N N N N N 77. N G C CO c (0 U ( U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c.0 y 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p0 0 Q O. 2 w w w w w W w w w w w w w in w w J w in • • o 1 0 0 N 0 99 0 c„.„ ii, �� N co Z >- >- >- as N Z N OO .t- 0)• • • N c) co U Z < a) °' 0 a a a t co w �_ m 1 ct O O Q m0 to O N Cr) O) Q CO O 0 LL QC ' N V V) 0) 0) O. O Z' Z N _ N W O 0) 0) 0) NI NI d 0) d V) v) u1 11, L t O 07 :-• p a s a 7 3 7 0 �- f�6 W U W O a O— N M � O� N M U U U O O F- ? I- J o m m m a`) m c c c 0 0 0 U 0 � 1 cn F- ,n I- "- 0 0 0 >✓ m m m c c , Q I O 0 Q 0 W U U U O O u) u) u) F- H I- 6 g ui ai ai ai ai ai ai ai ai ai ai ai I Il N EE u) ll = '(:.5 lL Il Il Il Il LL Il Il Il Il 0: a) 0 'U U U 0 Z 0 '0 '0 '0 c0 '0 '0 '0 '0 '0 c0 0 11 . '. Z Z cc— cZo mccc cccccZ EI O O NOOOOOOOOOOO 0Q NO E I- >: u) i)ZU .cUUUUUUUUUUU C90 (t) a)>- a)Q N a) a) a) a) a) aa) as a) a) a) O ' Qm wQw2c:La wwwwwwwwwww1 a0 LE O d ow 1 ` W 3 (0 (0 N N N N N N N N N N N N a�,,, N ✓ a Z 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 ENE M m p N N N N N N N N N N N N N N co 7 Q W J mr N N M co co co co co co co co co M N Z N � 0 Ce Z N N CO CO CO CO CO CO CO CO CO a0 CO CO N LL 1 Y C ,O 0 a) cn w N W o o n a) N m 0) a Ca) ✓ C7 0 a) n m Z CD V y :? U .01 0 � CO a Q c 0 0 V E _• ° 2 0 0 Om • In m I � � ° ' o Cl) II N 0 T:). O1 E 111 II U 5=1- 0 w N 0 } J o I t Q tii a H` N _ V) 1 O o f�6 NNZ as Q N @ �y �N W ° F E r 7 r a) w C 0) co CO U) <) a) C V/ W a 5 c2 11 o ° as 1 c o a p C Q O• E ' V U d UE) a) CI C Q 2 0 as Z u) 1 m m a) co CO m m m co (Timm aim d m m -p m m m m as as as as m as as v Q 0 co a) Q Q Q Q Q Q Q Q Q Q Q C 1 1 co To To I a m co co co co co m co m m co 0 cn TID cD E 'cr--) .0)- •40Th 'cr)- .5) .13, --(5) -5) -5 -c3) .$) co >,_ 0 , O Q6 b c (0 0 0 0 0 0 O 0 0 0 O O E 0� c co > 0) 0) 0) u) 0) L0 u) if)0) 0) 10 0) 10 u) l0 )r) ,� ; ° )- N I- rn 0) 0) 0) 0) 0) 0) CS) 0) 0) 0) 0) 0) 0) 0) c m w W o _) rn _rn _rn co rn rn rn rn o) rn co rn rn rn - W E a O N ✓ N N N N NNNNNNNNNNN I— N d 0) W t _ ). d C Ct O c _ aa) u 0) m • VN ZU10YI- QO pmM -' O 0cQ U 1° U 0 0 U U U U U U U U U U U � • 2 J L) .„ v E 0 p a 07:5 2 O O 0 ;O 0 o a 0 0 0 0 0 0 0 0 0 Q 0 a) lL ° ° a 2 w w _1 w w W W W w w w w w w W 3 � 0 0 C7 V • • 0 0 N O O: N co O co Z N p M U 03 w N T to Z i, i • ' cn N 0 > ci J CO CO J G O ceW O. w I W NW W Ce LU /W O u)V 0 0 Z o Q i W 3 J e. O• co ac 2 � ° O a � E w U N 0 o J £ Q o1 r- co a N O 5 G N M n W M a) a) C�//)� m is v/ W p G Q O ° a _O aII Q d Z p 1 1 U co 1 Z m N CO o 0 N N co co n N N N- Co N- e ' m N I- a O d N r dN N d N a' C C fV O N a 2 to O p C C U In '� Q R U E a• c y £ Q c� y £ £ O • i Release of Confidential Data Coversheet Well Name: Otter 1 PTD: 212-028 E-Set: 21806, 21993, 21994, 21995 ✓ 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 N Scan labeled data IV Apply OCR text recognition iave to Well Log Header Scans ew"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 2/29/2016 • • Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 ECEIVED Anchorage, Alaska 99501 Phone: (907) 334-6745 Fax: (907) 334-6735 APR 14 2016 AOGCC DATA TRANSMITTAL Date: April 14, 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 Otter#1, API#50-283-20163-00 Qty Description 1 Paper Copy- Otter-1 Formation Testing Summary- 3 pages Please sign below to acknowled receipt. Received By: Date: / -W 1/(9/ Returned to Cook Inlet Energy, L C Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 4 14 16 Otter J � 11110 • Cook Inlet Energy OTTER #1 Formation Testing Summary 7/10/12 Ignite Test Separator Burner w/new Bottle of Propane, Check WHP=0 psi, Rig up PWS and begin Swabbing 2 3/8" completion string found fluid level at 1350' at start, swab down to 4400'finding fluid level at average=3700' toward end of the day. Rig up and RIH with 2 3/8" Sliding Sleeve Shifting Tool, confirm sleeves at 3669' and 4214' are both open, POH 7/11/12 Monitor wellhead pressure, drop 2 soap sticks at 0630 hrs Continue swabbing, drop soap stick at 1900 hrs while reheading tool string, continue swabbing Rig Pollard Wireline lubricator to the side, drop soap stick, secure well for the night, monitoring Well head pressure 7/12/12 Monitor wellhead pressure, drop 2 soap sticks at 0630 hrs Check WHP=0 psi, Rig up PWS and began Swabbing 2 3/8" completion string. Found fluid level at 4170',swab down to 4500' RIH with shifting tool and closed sliding Sleeve at 4214', POH Continue swabbing Drop 1 soap stick, rehead lubricator, install new cups Continue swabbing POH,wait for well to produce water for Chloride sampling RIH and continue swabbing, POH and retrieve Chloride sample Rig down to the side,secure well, monitor night cap pressure gauge 7/13/12 Check WHP =0 psi, Rig up PWS and RIH to Swab 2 3/8" completion string. Found fluid level at 4650', WLEG =4680', POH Rig aside, open and monitor 2" hose from flow "T"to tank while PWS drove to Beluga to round up the spooler and wireline reel with 25,000' of new wire. Plan to change out wire drum tomorrow while Perforating and or Nitrogen job RIH with 1.75' bailer to tag bottom and grab sample of what bottom is. Ran out of wire on drum at 5080' -4710' = 370' below top shot on Perf zone at 4710'to 5173' =93'short of bottom perf and 395'short of PBTD at 5475', POH RIH w/1.72" Blind Box to 5000', did not see fluid level. Ran Blind box due to it's flat bottom and best tool for confirming fluid level, POH Rig PWS aside. Drop 1 soap stick. Secure well, monitor Pres. Gauge on PWS lubricator 7/14/12 Monitor wellhead pressure Check WHP=0 psi, Rig up PWS and RIH w/ 1.72" blind box, did not find fluid level at 5030', WLEG =4680', POH RIH w/2 3/8" "J" latch sliding sleeve shifting tool, confirm all 3 sleeves are closed, POH and rig down off Prod.Tree Rig down off of Production tree, secure well and monitor well pressure Begin setting and rigging up BJ Services Nitrogen pump and transport trailer, confer with town on procedure, pressure test lines to 4000 psi, (Good Test). Begin pumping N2 down 2 3/8" completion string, monitoring annulus, stop pumps at 1800 psi, 1900 psi, 2000 psi, 2500 psi, 3000 psi Begin pumping N2 down 2 3/8" completion string, monitoring annulus,stop pumps at 1800 psi, 1900 psi, 2000 psi, 2500 psi, 3000 psi and 3500 psi with 5 min shut in at each interval. Observed hesitation at 2700 psi, continue up to 3000 psi, bled off to 2890 psi in 10 minutes (all other intervals at lower pressure held solid, straight lines on chart). Pressure up to 3500 psi as we were pumping pressure dropped from 3480 psi to 3430 psi then continued up to 3500 psi bled to 3350 psi in 30 mins Confer with town Bleed off thru test separator equipment to 2000 psi at 1.5 mmcf/day flow rate, PTS Tech monitoring/documenting flow stat's Repeat pres. intervals as above:did not see hesitation at 2700 psi or 3480 psi. At the 30 min. mark bled from 3500 psi pressure bled down to 3370 psi, 20 psi slower than 1st test. Confer with town. Bleed off thru test separator equipment to 1000 psi at 1 mmcf/day flow rate, PTS Tech monitoring/documenting flow stat's Shut in well from Separator and monitor wellhead Page 1 of 3 • • Cook Inlet Energy OTTER#1 Formation Testing Summary pressure while confering with town,wellhead pressure maintained at 1000 psi Repeat pres. Intervals as above: at 2500 psi interval, pressure bled from 2500 psi to 2390 psi at 5 mins. Did not observe hesitation at any other intervals. At 3000 psi lost 40 psi at the 5 minute stop. At 3500 psi bled to 3370 psi after 30 mins Same as last cycle Confer with town, Bleed off lines and rig down BJ Services hard lines from top of tree, make up tree cap w/pres. Gauge teem bleeding down well at 3750 psi with 1.0 mmcf/dav flow rate thru Test Separator, PTS Tech monitor and documenting flow stat's 7/15/12 Monitor wellhead pressure Rig up PWS and RIH with 1.72" Blind box to 5000' no fluid level, POH Pump 5 bbls of 9.5 ppg KCL fluid to well, RIH with 1.72" blind box to 5000' no fluid, POH Pump additional 5 bbls of KCL water, (from 5000'to WLEG at 4680' =4.8 bbls) RIH with blind box tagged fluid at 1565',confirm w/multiple runs,stay in the well close to 1565' and confer with town. Double check fluid level before POH, appears fluid level may have risen, POH. Make up and RIH with Sliding Sleeve shifting tool, confirm that top sleeve is closed and not partially open allowing annulus water to leak into 2 3/8"tubing. Confirmed that sliding sleeve is closed, POH RIH & begin swabbing f/ 1565't/4170', while Expro finished building 40' guns. Rig down/ move PWS unit for Expro to rig up on well Rig up Expro, held a PJSM with all personnel on location, primarily shutting off phones, radios, Satelite and cell phones periodically thru out the night/ morning. Pressure test BJ Services Nitrogen flow lines and Expro lubricator to 3000 psi, (Good Test). Open well RIH 200',turn on communications, continue RIH w/ 10' 1 11/16" 6 shots/ft strip guns, could not pass top sliding sleeve at 3502', POH, did not pressure up well w/131 N2. Descion made to lay down gun#1, Secure well for the night. BJ and Expro crews depart location back to camp. 7/16/12 Monitor wellhead pressure Rig up Expro select strip gun that has straight leading end, PJSM w/ all on location, radio/communication's shut off Wire up the detonator, make up and test lubricator and BJ Services N2 lines to 3000 psi, (Good Test). Open well and RIH (run#1)with 1 11/16" 6 spf 10' strip guns to 5150', log up several passes, send CCL and GR logs to town for depth corralation/ confirmation. Made shot#1 with 650 psi N2 from 5118'to 5108', POH to above "XN" nipple. Observe WHP for 20 mins. WHP start: 640 psi dropped to 630 psi and held static. POH w/ Perf Gun Run#1, at 200'from surface shut down all communications All shots fired, lay down spent guns and pick up,wire detonator on 10' Perf gun assy#2, equalize lubricator with well N2 pressure RIH (run#2)to 5381', log up several passes, drop WHP from 650 psi to 400 psi,send CCL/GR logs to town for correlation/confirm. Made shot#2 with 400 psi N2 from 5279'to 5269', POH 20', observed WHP for 20 mins. 400 psi dropped to 380 psi and held static POH with Perf Gun Run #2, at 200'from surface shut down all communications All shots fired, lay down spent guns and pick up, wire detonator on 10' Perf gun assy #3, equalize lubricator with well N2 pressure RIH (run#3)to 5200', log up several passes, drop WHP from 380 psi to 200 psi,send CCL/GR logs to town for correlation/confirm. Made shot#3 with 200 psi N2 from 5150'to 5140', POH 20', observed WHP for 20 mins. 200 psi dropped to 190 psi and held static POH with Perf Gun Run#3, at 200'from surface shut down all communications All shots fired, lay down spent guns and pick up,wire detonator on 10' Perf gun assy#4, equalize lubricator with well N2 pressure Page 2 of 3 • • • Cook Inlet Energy OTTER#1 Formation Testing Summary 7/17/12 Continue laying down spent guns and pick up,wire detonator on 10' Perf gun assy#4, equalize lubricator with well N2 pressure. RIH (run#4)to 5250', log up several passes,drop WHP f/190 psi to 150 psi, send CCL/GR to town for correlation/confirmation Made shot#4 w/150 psi N2 f/5208' t/5198', POH 20',observe WHP for 20 mins.f/150 t/ 120 psi and held static. POH w/perf gun run#4, at 200' shut down all communications All guns fired, lay down Gun assy. #4(Final Run) Bled N2 thru test separator at 130 psi at .750 mmcf/day flow rate,went to zero in 5 mins, no fluid to surface, 100 LEL's at end of flow went to zero LEL's in 15 mins. Monitor well open to tank for 1hour, checking huff/puffing and LEL's Secure/shut in well, monitor WHP Zero psi,open well, check LEL's=85, CO=20 ppm,shut in well continue to monitor WHP Rig up Pollard Wireline, RIH with 1.85"swedge,tag fluid level at 3405', POH Rig down unit and lubricator Crew and Unit departed for Beluga, plane scheduled for Pollard crew at 1900 hrs Secure well and monitor well head pressure 7/18/12-7/30/12 Monitor wellhead pressure Page 3 of 3 22-b2e, 21ggLI fook Inlet Energy,En r , LC ' ` IVED 601 W. 5th Avenue, Suite 310 1 2 4 2016 Anchorage, Alaska 99501 Phone: (907) 334-6745 Fax: (907) 334-6735 AOGCC DATA TRANSMITTAL Date: February 24, 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 Otter#1, API#50-283-20163-00 in accordance with Alaska Reg iio 537(b), we request /vote._ Laertc,ouvcfra_Q aritc,. 2/2//h that confide a extended to all of the following information. Qty Description 1 CD -Canrig Mudlog Tiff Images for Otter-1; 4 files; Format: TIFF Combo Log 1 Inch aqt� Drilling Dynamics 1 inch 2` Drilling Dynamics 5 inch Formation Log 1 inch Please sign below to acknowledge receipt. Received By t7\ Date: a /� / 7 1 Returned to Cook Inlet Energ LL Date f Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 2 24 16 Otter I, _ Inlet Energy_ OT ii - ._1 -12 IlI t Ill Contents. Log TIFF Files June 19, 2012 t a t}�`' t °v t * �` t • .. ill ') , 1 ) ' r .444 CANRIG ` -" = wv • i 4_4_ •r•r 4-14-4 224- 1 V•r ZZ4-) H H • 4- 2 rr1inU 4J Z • 00H 22E V r1 Z V)V) HUUO HEX H H < 40 O Z Z O X 00 J uj O U l7 0 4- JHHI- CD -1 -142 00 -1 -12 r1 M1-11-1O' OoCoC0 L 000L4- 0 N cd +) 4-11-11-11-1 L I I I I 4- O r1r1r1r1 0 00 ocv vv oEL~ WWW 4-1 4-)4-+ 0 0000 �0 X00 00 N 00 00 r1 rl l0rIN0�t d' N N N" I in 00r1r1OO 0 rll0 rll0 Lr d• 0 (7) 0") LEL '0 0 aJ I OIOCS)0N N }J OI I�00 I�00M M 4-4u- 00 -4LL00 0 W HO /1 ••P U r V) -00,-• v wv0 OL a) 4-4W\-.1 Ors- C1_ 111:1- (1-1- WE 0_ L). LL•rWE LL -114- 0 O / 1-14-1r44-1 uZ 0000- Oct0 rr MMMM r Lrd 4- 0000 'C)•r 0 LL L CW > 1010100 r •r VI L 4-11-11-11-1 fd 0 0000 E• E U \\\\ H mm a) MMMM rr L NNNN O 0 •r \\\\ > > 0 NNNN 0000 212-02_5 i r z 1 eco Cook Inlet Energy, LLCnPrFiVED 601 W. 5th Avenue, Suite 310 FEB 2 2016 Anchorage, Alaska 99501 Phone: (907) 334-6745 Fax: (907) 334-6735 AOGCC DATA TRANSMITTAL Date: February 23, 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 Otter#1, API#50-283-20163-00 In accordance with Alaska Re 25.537(b),we request NAL �� �� that confide ' extended to all of the following information. TT Qty Description 1 Paper Copy- Otter#1 -Cement Bond Log 4.5"in Production Casing/3.958"in I.D/ 12.6lbs Please sign below to acknowledge receipt. Received By. Date: a fq I4j Returned to Cook Inlet Energy, LLC Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 2 23 16 Otter .• --'",,,-,:i•,:` ,••°1,e*.°.''f_' •45- '';;',,Zs,'::V„:4‘.-— . i • • '8 t 0) (,) CBL Bond Log . Ts a . w EXPRO 4.5"in Production Casing / 3.958 in WIRELINE INTERVENTION ID / 12.6Ibs 8 ' >•. 0 F. = 0 0 • co . Company Cook Inlet Energy .. . . . a) Well Otter 1-12 -E- • co , ,. . . .- Field Pretty Creek cm . County Kenai State Alaska -c, t cn c a' c Location: API#. Other Services 4,5 w a) c= -45 CNI CD c (1. None 0 0 EL Y .7 SEC TVVP RGE Elevation c as C = Permanent Datum Ground Level Elevation 17.7ft K.B. 177.7ft r c ca >, a) 4, cg- ,_ , ..9 92 Log Measured From Drill Floor D.F. 177.7ft E Drilling Measured From Drill Floor G.L. 160ft 0 c in• 03 Z. )ate 25-Jun-2012 a) a Run Number )epth Driller 5686ft . a)E• .= ; )epth Logger 5478ft ,,. Bottom Logged Interval 5478ft 8 c -6 u Fop Log Interval 2000ft p 1_____. D_p_en Hole Size 6.125 0 Type Fluid )ensity/Viscosity E y, Oak Recorded Temp. .E2 Lai Estimated Cement Top 2500ft 2 -c rime Well Ready 19:45 c.- 02 rime Logger on Bottom 00:55 Equipment Number P#5 1 c a _ocation Kenai I0 Recorded By Malcolm Thom a) c CO- Nitnessed By Mike Murray • .0.c Borehole Record L Tubing Record C a Run Number Bit From To I Size Weight , From To 9 . -KT o a --t, A 0 A - C. A a3 C 3asing Record Size1/Vgt/Ft Tdp Bottom 3urface String 7 • 26 02096 -2 ra''' at 'rot.String 4.5 12.6 0 5686ft u_ El•-_, )roduction String v c c finer v •- - . • Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Tuesday, February 23, 2016 9:21 AM To: 'Barbara Kruk' Cc: Dan Dickinson; Bettis, Patricia K (DOA); Davies, Stephen F (DOA) Subject: RE:Otter 1, PTD 212-028, Data Required Hi Barb, Please note I am requesting a paper log of the CBL.Your transmittal form only shows a digital copy and a print out of the files on the CD. A paper copy of the log was not submitted and is required per 20 AAC 25.071 (b)(6). Please request the TIF files from Canrig so the dataset is complete and reproducible if needed. I have reviewed the CD and contents and those TIF files were not supplied. Please supply the required data by March 2, 2016. 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. From: Barbara Kruk [mailto:Barb.Kruk@cookinlet.net] Sent: Monday, February 22, 2016 7:16 PM To: Guhl, Meredith D (DOA) Cc: Dan Dickinson Subject: FW: Otter 1, PTD 212-028, Data Required Hi Meredith, Please see the attached file for data that was submitted in September 2012 that shows we submitted the data. We submitted all the data that we received from Canrig for the mudlogs. Please see the attached printout for CD contents. 1 • Please let me know if you can't locai"ed the CD and we can send over another copy. 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: Friday, February 05,2016 9:52 AM To: Barbara Kruk<Barb.Kruk@cookinlet.net> Cc: Dan Dickinson<Dan.Dickinson@cookinlet.net> Subject:Otter 1, PTD 212-028, Data Required Barb, I'm reviewing the Otter 1 data as it was released from confidentiality on February 3, 2016. During my review I noted that the following data was not supplied originally. 1. Paper copy of Expro CBL 4.5" Production Casing/3.958" ID/12.6 lbs 2. TIF files for mudlogs: a. Combo Log 1 inch b. Drilling Dynamics 1 inch c. Drilling Dynamics 5 inch d. Formation Log 1 inch Please supply the required data by February 19, 2016. Please send it to my attention. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 • Guhl, Meredith D (DOA) From: Barbara Kruk <Barb.Kruk@cookinlet.net> Sent: Monday, February 22, 2016 7:16 PM To: Guhl, Meredith D (DOA) Cc: Dan Dickinson Subject: FW: Otter 1, PTD 212-028, Data Required Attachments: Transmittal_AOGCC_Otter_CBL.pdf;Transmittal_AOGCC_Otter_plusMudlog.pdf Hi Meredith, Please see the attached file for data that was submitted in September 2012 that shows we submitted the data. We submitted all the data that we received from Canrig for the mudlogs. Please see the attached printout for CD contents. Please let me know if you can't located the CD and we can send over another copy. 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: 907-952-1151 1 Email:barb.kruk@cookinlet.net From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Friday, February 05, 2016 9:52 AM To: Barbara Kruk<Barb.Kruk@cookinlet.net> Cc: Dan Dickinson<Dan.Dickinson@cookinlet.net> Subject: Otter 1, PTD 212-028, Data Required Barb, I'm reviewing the Otter 1 data as it was released from confidentiality on February 3, 2016. During my review I noted that the following data was not supplied originally. 1. Paper copy of Expro CBL 4.5" Production Casing/3.958" ID/12.6 lbs 2. TIF files for mudlogs: a. Combo Log 1 inch b. Drilling Dynamics 1 inch c. Drilling Dynamics 5 inch d. Formation Log 1 inch Please supply the required data by February 19, 2016. Please send it to my attention. If you have any questions, please contact me. 1 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 • Guhl, Meredith D (DOA) From: Decker, Paul L(DNR) Sent: Tuesday,January 12, 2016 8:50 AM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: RE: Extended Confidentiality Otter 1 (PTD 212-028) and Otter 1A (PTD 213-164) Hi Meredith, Happy New Year to you as well! No, CIE has not requested extended confidentiality on either of the subject boreholes,Otter 1 and Otter 1A. Thanks, -Paul Paul L.Decker,Petroleum Geologist Resource Evaluation Manager Alaska Division of Oil&Gas 550 W.7th Ave,Ste. 1100 Anchorage,AK 99501 (907)269-8791 pauLdecker@alaska.gov CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Department of Natural Resources(DNR),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the DNR is aware of the mistake in sending it to you,contact Paul Decker at(907) 269-8791 or paul.decker@alaska.gov. From:Guhl, Meredith D (DOA) Sent: Monday,January 11, 2016 10:51 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: Extended Confidentiality Otter 1 (PTD 212-028)and Otter 1A(PTD 213-164) Hello Paul, Happy New Year! I am inquiring today about Cook Inlet Energy's Otter 1 (PTD 212-028)and Otter 1A(PTD 213-164), due for release after February 2, 2016. Has extended confidentiality been requested for either or both of these wells? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov 1 w,*I 7/ s9 THE STATE Alaska Oil and Gas ig. ,---',-='14"-----4_ ofALASKA -,t. ---_ - ------4.4t Conservation Commission -gyesevg_ Witt T- .A GOVERNOR SEAN PARNELL 333 West Seventh Avenue OFALASr . Anchorage, Alaska 99501-3572 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, Otter#1 Sundry Number: 313-607 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 Foerster Chair, ommissioner DATED this 7 day of November, 2013. Encl. - STAFF MEMBIll • RECEIVED Oe , SQa,Md,,�� NOV 19 2013 ..�_....,+�,.. .. . STATE OF ALASKA RECUSED JD GAS CONSERVATION COMMISSION �(� AOG^ APPLICATION FOR SUNDRY APPROVALS (a 20 AAC 25.280 1.Type of Request: Abandon Plug for Redrill E• Perforate New Pool ❑ Repair Well❑ Change Approved Program 0 Suspenn Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension 0 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 Exploratory ❑✓ , Development ❑ 212-028 • 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20163-00-00• 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this poc 20AAC25.055 Will planned perforations require a spacing exception? Yes ❑ No ❑✓ OTTER#1 ' 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 390579 , EXPLORATORY 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 5,686' , 5,614' • 5,480' - 5,447' . NONE 4,551' Casing Length Size MD ND Burst Collapse Structural Conductor 157' 10 3/4"L80 157' 157' Surface 2,096' 7"J55 2,096' 2,095' 4,360 3,270 Intermediate 5,637' 4 1/2"L80 5,637' 5,604' 7,780 6,350 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3,706'-5,279' • 3,695'-5,151' pulled Packers and SSSV Type: 1 permanent Packers and SSSV MD(ft)and TVD(ft): NO SSSV NO SSSV 4,551'MD/4,481'TVD . 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch 11 Exploratory I✓1 ' Stratigraphic( i Development [ 1 Service ❑ , 14.Estimated Date for 15-Nov-13 15.Well Status after proposed work: 177011 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended Ltu 16.Verbal Approval: Date: 11/15/2013 WINJ ❑ GINJ ❑ WAG ❑ Abandoned L t Commission Representative: Guy Schwartz GSTOR ❑ SPLUG Li 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Courtney Rust 907-433-3809 Email Courtney.rust@cookinlet.net Printed Name Conrad Perry,Drilling Man-_- Title 11/19/2013 Signature / Phone 907-727-7404 Date COMMISSION USE ONLY Conditions of approval: Notify C. ission so that a esentative may witness Sundry Number: SV3`Lo O`1 Plug Integrity ❑ BOP Test ❑ 144a,MechanicallInInteggrity Test ❑ Location Clearance ❑ Other: x A( v'•i-e, /0 fp[ -a-oitiO,gj P Spacing Exception Required? Yes ❑ No ii Subsequent Form Required: /0-L{a7 t_ (1 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: /7— ZA61 -/3 D t '^^ L 11 Submit Form and Form 10-403(Revised 10/2012) Ap o i i �iNic�pr nths from the date of proval. �Q�3 ents rt Duplicate //////___���llllll j �� � NOV 21cZ • Cook Inlet Ener RECEIVED gY- Nov 19 2u AOGCC November 19, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application Cook Inlet Energy, LLC: Otter#1 PTD 212-028 Dear Ms. Foerster, Cook Inlet Energy (CIE) hereby submits a sundry application to plug back Otter #1 for redrill. The Otter #1 well was inadvertently sidetracked while attempting to mill out a permanent packer at 4400'. We were unable to re-enter the casing after several attempts and after conversations with Guy Schwartz, were allowed to drill ahead to confirm we had indeed sidetracked the well. CIE will permanently seal off the well bore below 4400' when 2 3/8" casing is run and cemented back above 3700' per the Otter#1A PTD program. If you have any questions,please contact me at(907)-727-7404. Sincerely, Conrad ' Drilling Manager Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • • • Cook Inlet Energy_ otter #1 Current Condition 11-15-13 Conductor: 1% 10 3/4", 45.5#, L-80, BTC (ID = 9.95") -0,1',01 „`?,,,• Set©157' MD/TVD kl:i 04.a,. AY., M✓�. '��'r.% Jrreti'• No �r1 Surface: 8 1/2" Hole f so 7 ", 23#, J-55, LTC (ID = 6.151") -CAo. oit `� Set@ 2092' MD/TVD ,•.%.4w N: Perforation Intervals: ',• , Zone: 1 = 258' 1 3706'-3714'= 8' �w ;. 3800'-3804'= 4' 64,14 22' 3852'-3854'= 2' ` A, o. 3916'-3920'= 4' IA, 3960'-3964'= 4' *' eSf t 2-3/8", 4.7#, J55, EUE i....•• Tubing (Coupling OD = 3.063") Zone: 2= 252' 41 • 4240'-4248'= 8' 4Z 18' 4270'-4274'= 4' �., 4403'-4406'= 3' "sr"� 4489'-4492'= 3' SideTrack @ 4400' MD .k3 • Permanent Packer @ 4551' MD/TVD Zone: 3= 569' 4710'-4725'= 15' �" %; ASA ti XN nipple @ 4648' MD/TVD 4770'-4773'= 3' `� ..� Mule Shoe @ 4679' MD/TVD 4986'-4994'= 8' c', 5014'-5018'= 4' #-Production: 6 1/8" Hole 4. 5094'-5150'=56' �s� 127' •�... �����. 4 1/2", 11.6#, WT-80, LTC (Drift ID =3.875") 5166'-5173'= 7' • �Nv'10,4.: � •. 5198'-5208'= 10' 5269'-5279'= 10' TD: @ 5686' MD/TVD • • Cook Inlet Energy_ Otter #1 Plug Back (after ReDrill) Conductor: :0'!`! .iy :; 10 3/4", 45.5#, L-80, BTC (ID = 9.95") }0y Set @157' MD/TVD .1". \. 0 VA .yam,:' \ii;!\. .<VNON f,. \�\r� 4.K. Surface: 8 1/2" Hole 4,\�titv:.0.. \R 7 ", 23#, J-55, LTC (ID = 6.151") V;`'j �!\ Set@ 2092' MD/TVD ti' %A.,/ ,*se 4s. ,„. ., .,.. ...„ Perforation Intervals: : At mt) Zone: 1 = 258' \ .> TOC above 3700' 3706'-3714'= 8' \``s,tif tint. 3800'-3804'= 4' %;�•'ti: tifti.<, 22' 3852'-3854'= 2' �� cf : \�,r'rtir {}y'`� 3916'-3920'= 4' 4 44 1f of t 3960'-3964'= 4' \v�`'ti. ;.rti. ✓ ...": .r; 47:?..5 tif▪ti• \�''f �' 2-3/8", 4.7#, J55, EUE fir tirt▪i• �! %;f ::ti.v Tubing (Coupling OD = 3.063") Zone: 2= 252' ew `*,ff tifti• 4240'-4248'= 8' \* ; rti. , 4270'-4274'= 4' ,,far '.1X1,,, 18' 4403'-4406'= 3' ,t;, of ti:tir l 4489'-4492'= 3' 4e ti.: SideTrack @ 4400' MD dTree_ SA" \ \ C Permanent Packer @ 4551' MD /TVD Zone: 3= 569 S 4710'-4725'= 15' 44 .\.-s i: XN nipple @ 4648' MD /TVD 4770'-4773'= 3' \",Ay ✓*, P Mule Shoe @ 4679' MD/TVD 4986'-4994'= 8' c', 5014'-5018'= 4' �"� Production: 6 1/8" Hole 5094'-5150'=56' �,.'!�` Pik••`! 127' !. �� .. 4 1/2", 11.6#, WT-80, LTC (Drift ID =3.875") 5166'-5173'= 7' ''' iron. 5198'-5208'= 10' TD: @ 5686' MD /TVD 5269'-5279'= 10' Csi • . • Page 1of1 Subject: FW: INTENT PLUG for RE-DRILL WELLS: Corrected From: Davies, Stephen F (DOA) Sent: Monday, February 08, 2010 10:52 AM To: Foerster, Catherine P (DOA); McMains, Stephen E (DOA); Schwartz, Guy L (DOA); Saltmarsh, Arthur C (DOA); Aubert, Winton G (DOA) Subject: RE: INTENT PLUG for RE-DRILL WELLS: Corrected Revised procedure with an additional step per Cathy's comment: INTENT PLUG for RE-DRILL WELLS (IPBRD)Type Work Code in RBDMS / 1. When a Form 10-403 is submitted requesting approval to plug a well for redrill,the initial reviewer(Art J or Steve D.) will check to make sure that the "Plug for Redrill" box in the upper left corner of the 403 form is checked. If the "Abandon" box is checked, we will cross that erroneous entry out and initial it on both copies of the Form 10-403 (AOGCC's and operator's copies). 2. On the Form 10-403 if"Abandon" is checked in Box 15 (Well Status after proposed work), Art or Steve / D. will cross that erroneous entry out and initial it on both copies of the Form 10-403 (AOGCC's and �/ operator's copies). Instead, we will check the "Suspended" box. Guy and Winton will serve as quality control for steps 1 and 2. 3. When Steve McMains receives the Form 10-403 with a check in the "Plug for Redrill" box, he will enter the existing code "IBPRD" into RBDMS. This code automatically generates a comment under the History tab stating "Intent: Plug for Redrill." 4. When Steve McMains receives any Form 10-407, he will check the History tab in RBDMS for this comment. If he sees the "Intent: Plug for Redrill" code, and cannot find any evidence that a subsequent re-drill has been COMPLETED, he will assign a status of SUSPENDED to the well bore in RBDMS, no matter what status is listed on the 10-407. Steve will also change the status on the 10-407 form to SUSPENDED, and will date and initial his change. If Steve does not see the "Intent: Plug for Redrill" comment or code, he will enter the status listed on the Form 10-407 into RBDMS. 5. When the Form 10-407 for the redrill is received, Steve M. will change the original well's status from suspended to abandoned. 6. The first week of every January and July, Steve M. and Steve D. will check the "Well by Type Work Outstanding" user query in RBDMS to ensure that all of the Plug for Redrill wells have been handled properly. At this same time, Steve M. and Steve D. will also review the list of suspended wells for accuracy. Thanks, Steve D. ! • Schwartz, Guy L (DOA) From: Conrad Perry <conrad.perry@cookinlet.net> Sent: Tuesday, November 19, 2013 9:31 AM To: Schwartz, Guy L(DOA); 'Stephen Ratcliff' Cc: Bettis, Patricia K(DOA) Subject: RE: Otter#1A - New Directional Wellplan Attachments: OtterlA_Sundry_11-15-13_submitted.pdf 2 I /?7— /Z-�z OrrE D Guy, We submitted the attached 10-403 on last Friday as a "change to approved program". It might not have made it through your system yet. I can re-submit it as a plug for redrill if needed. Please advise. 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. From: Schwartz, Guy L (DOA) [ ailto:guy.s vartz@alaska.gov) Sent: Monday, November 18, 2013 12:02 PM To: Conrad Perry; 'Stephen Ratcliff Cc: Bettis, Patricia K (DOA) Subject: RE: Otter#1A - New Directional Wellplan Conrad, Will also need a 10-403 "Plug for redrill" (P&A) for the original Otter#1 wellbore that is now below the sidetrack. Get that in as soon as possible. Guy Schwartz Senior Petroleum Engineer AOGCC 1 • 9d7-301-4533 cell 907-793-1226 office From: Conrad Perry [ -silto:conrad perry@mokinlet.net] Sent: Friday, November 15, 2013 11:08 AM To: Schwartz, Guy L (DOA); 'Stephen Ratcliff Cc: Bettis, Patricia K (DOA) Subject: RE: Otter#1A - New Directional Wellplan We are on it! Thanks Guy, conrad From: Schwartz, Guy L(DOA) [ chwartz@@"alaska.yov] Sent: Friday, November 15, 2013 10:39 AM To: Stephen Ratcliff Cc: 'Conrad Perry'; Bettis, Patricia K(DOA) Subject: RE: Otter#1A - New Directional Wellplan We discussed and would like a 10-403 sundry for change approved program. It should include the new casing program, directional and any other changes that affect the rest of the well. You may continue drilling ahead pending the sundry_. approval butget it to us as soon as possible. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office From: Stephen Ratcliff[ l` —` hen.ratcliff@acookinlet.net] Sent: Friday, November 15, 2013 9:38 AM To: Schwartz, Guy L(DOA) Cc: 'Conrad Perry' Subject: Otter#1A - New Directional Wellplan Guy, Please see the attached new directional plan for Otter 1A and let me know if you have any questions. Regards, Stephen Ratcliff Senior Drilling Engineer Cook Inlet Energy 601 W. 5th Avenue, Suite 310 Anchorage,AK 99501 O-(907)433-3808 C- (907)433-9738 2 • STATE OF ALASKA • OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: jim.regq(a�alaska.gov AOGCC.Inspectors(a alaska.gov phoebe.brooks(a�alaska.gov Contractor: Miller Rig No.: 34 - DATE: 11/11/13 Rig Rep.: B. Boze/M. Feaster Rig Phone: 907-433-8966 Rig Fax: Operator: Cook Inlet Energy Op. Phone: 907-433-8965 Op. Fax: Rep.: Mike Murray E-Mail drilling.foreman@cookinlet.net Well Name: Otter#1 - PTD# 2120280 - Operation: DrIg: Workover: X Explor.: Test: Initial: Weekly: X - Bi-Weekly Test Pressure: Rams: 250-3000 Annular: 250-1500 Valves: 250-3000 MISC. INSPECTIONS: TEST DATA FLOOR SAFETY VALVES: Test Result Test Result Quantity Test Result Location Gen.: P - Well Sign P Upper Kelly 1 P Housekeeping: P Drl. Rig P • Lower Kelly 1 P PTD On Location P Hazard Sec. P • Ball Type 1 • P Standing Order Posted P Misc NA Inside BOP 1 P FSV Misc 0 NA BOP STACK: Quantity Size/Type Test Result MUD SYSTEM: Visual Alarm Stripper 0 NA Trip Tank P . P Annular Preventer 1 11" P Pit Level Indicators P - P #1 Rams 1 2 3/8 P Flow Indicator P P #2 Rams 1 Blinds FP ' Meth Gas Detector P ' P #3 Rams 0 NA H2S Gas Detector FP FP #4 Rams 0 NA MS Misc 0 NA #5 Rams 0 NA #6 Rams 0 NA Quantity Test Result Choke Ln. Valves 1 3 1/8" P Inside Reel valves 0 NA HCR Valves 1 3 1/8" - P Kill Line Valves 3 2/16" P Check Valve 0 NA ACCUMULATOR SYSTEM: BOP Misc 0 NA Time/Pressure Test Result System Pressure 2950 P CHOKE MANIFOLD: Pressure After Closure 1600 P Quantity Test Result 200 psi Attained 27 P No. Valves 12 P Full Pressure Attained 122 P Manual Chokes 1 • P Blind Switch Covers: All stations Yes Hydraulic Chokes 1 • P Nitgn. Bottles (avg): 2150 CH Misc 0 NA ACC Misc 0 NA Test Results Number of Failures: 3 ' Test Time: 24.5 Hours Repair or replacement of equipment will be made within NA days. Notify the AOGCC of repairs with written confirmation to: AOGCC.Inspectors@alaska.gov Remarks: 3 Failures = Blind Ram failed. Replaced packer element and passed test. Two H2S Detectors failed. Replaced both H2S sensors, calibrated all sensors. All gas detection now at 100%. All repairs made. 24 HOUR NOTICE GIVEN YES X NO Waived By Jeff Jones Date 11/8/13 Time 06:30 Witness Test start 10:00 11/10 Finish 10:30 11/11 Form 10-424 (Revised 03/2013) 2013-1111_BOP_Miller34_Otter-1.xlsx • • BOPE Test— Miller Rig 34 Otter#1 — PTD 2120280 11/11/2013 /" i f -73 �ft1 f 7a. L �� _ ter.^^ ov Co ti' 30 - a p.. 4i Q' 'may* - . / _ __ _..; ,,,, _ y i� N -.71-------- ' 6 9 Page 1 of 4 • • _ •lr `- at { x , j ;_ ' J � ,� V `8 Iii t, -,\,, e .. f3 ] a \ ,... 1 i r 7�°'9 "f. ot,r:,...,w c r:«.,4, '= (1,,,,r;�, ,.$ Page 2 of 4 • • ,/ R _ ,../r k,(.9 r.^ s r W 1+. C ` . Sr- 4, - 4.\*:'''....----'- '4* ' '.... ' car•.4 � -"----4--- i. Page 3 of 4 • • � _ Page 4 of 4 • • Schwartz, Guy L (DOA) From: Conrad Perry <conrad.perry@cookinlet.net> Sent: Friday, October 25, 2013 3:41 PM To: Schwartz, Guy L(DOA) Cc: courtney.rust@cookinlet.net; 'Stephen Ratcliff' Subject: Update Guy, We hit you this week with a PTD for Otter and a Sundry completion request for Sword. I wanted to give you a brief on both. ©ire' 1t l r°l o 04 Z—O 7-4) Last year we suspended Otter#1 after an initial well test. We never reached the originally permitted td of 7000' due to hole problems. We came back to it in October and tried a diesel flush on all three zones without success. Due to lease commitments CIE management wants to go to the original 7000'TD. We will have to use a spaghetti string of 2 7/8" drill pipe, motor and mwd to get through the 4%" casing and drill 3%" hole. Coil would have been better but it is unavailable. That PTD application is in front of you now. I submitted the Sundry completion application for Sword#1 today. It has some complications to it and I have designed a dual zone single selective jet pump completion. We have three zones of interest,a Tyonek Gas,a Tyonek oil, and the Hemlock oil. We are requesting to comingle the Hemlock and Tyonek oil zones. We know it will take not only AOGCC permission, but also a public notice period. Our plan is to perforate the Hemlock only and leave the Tyonek oil behind pipe for future perfs with a tractor after we have permission. Mr. Regg can fill you in on some historical safety valve issues over at West Mac. Currently none of the wells have SSSVs, however,they do place a surface safety valve on the upper master and on the annulus. We pump power fluid down the tubing and take returns out the annulus. I have included a SSSV to preclude any problems with a no flow and because of the potential Tyonek gas sand. Our BHL is offshore and we are within the 660'of the coast. Have a great weekend. 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 gicookiniet.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 ti * OF 714, THE STATE Alaska Oil and Gas (ALASKA '�anServtAon Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue 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, Otter#1 Sundry Number: 313-547 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, 10*„./4„Cathy P. F erste Chair, Co missioner c- DATED this (.S day of October, 2013. Encl. M. • 0s,I RECEIVED STATE OF ALASKA ,�,` OCT 1 4 2013 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS ACGCD 20 AAC 25.280 1.Type of Request: Abando❑ Plug for Redrill ❑ Perforate New, Foca 0 Repair Wet! ❑ Change Approved Program ❑ L._ SuspenF Plug Perforations ❑ 1,-./5.13 Perforate❑ Putt Tubing [] Time Extension ❑ Operations ShutdoWG❑ Re-enter Susp.Well ❑' Di.sEt.Stimulate❑' Alter Cas:rig ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: COOK INLET ENERGY Exploratory 0• Development ❑ 212-028- 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20163-00 7.If perforating: 8 We`' Name and Namber What Regulation or Conservation Order governs well spacing in this poi 20AAC25.055 Will planned perforations require a spacing exception? Yes ❑ No 0 OTTER#1 , 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL 390579 , EXPLORATORY . 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 5,686' 5,614' • - 5,480' 5,447' NONE NONE Casing Length Size MD TVD Burst Collapse Structural Conductor 157' 10 3/4"L80 157' 157' Surface 2,096' 7"J55 2,096' 2,095' 4,360 3,270 Intermediate 5,637' 4 1/2"L80 5,637' 5,604' 7,780 6,350 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3,706'-5,279' 3,695'-5,151' 2 3/8"4.7# J55 4,680' Packers and SSSV Type: 1 permanent,2x retrievable Packers and SSSV MD(ft)and TVD(ft): NO SSSV NO SSSV 3,555'MD/3,546'TVD,4,104'MD/4,088'TVD, 4,551'MD/4,481'TVD 12.Attachments: Description Summary of Proposal E. 13.Well Class after proposed work: Detailed Operations Program Q BOP Sketch I I Exploratory I v I ' Stratigraphic I I Development I I Service [, 14.Estimated Date for 16-Oct-13 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas Q, WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: i 6—/S_13 WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: C? cl.>��..,--h GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and orrect to the best of my knowledge. Contact Courtney Rust 907-433-3809 Email courtney.rust@cookinlet.net Printed Name Conrad Perry,Drilling Managg2er Title 10/14/2013 Signature (�� P/ Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that representative may witness Sundry Number: C , 3\3— -`A.`7 EX Plug Integrity ❑ BOP Test Mechanical Integrity Test ❑ Location Clearance ❑ . Other: 3'600 QS.% •&ef 64n" C .,.` /t -i5/- S(.4_,---F-,._ T-r"--ii--_` �. 4 Y3 9O, s Spacing Exception Required? Yes ❑ No ❑ Subsequent Form Required: /v -y o y APPROVED BY Approved by6,_°47jas99,t44.4---. COMMISSIONER THE COMMISSION Date: /0—/5-- /5 / /o -r s- (J ?k s jo/tt 4ib i ('9 /7 l NiArL Submit Form and Form 10-403(Revised 10/2012) Ap� p li months from the date of approval. chments in Duplicate ° S OCT 1 6 " ', • RECEIVED Cook Inlet Energy_ OCT 14 2013 AOGCC October 14th, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application Revision Cook Inlet Energy, LLC: Otter#1 Permit to Drill No: 212-028 Approved Sundry 313-357 Dear Ms. Foerster, Cook Inlet Energy(CIE) hereby submits a a sundry application to unsuspend the Otter#1 well and perform diesel/methonal squeezes on each of the three open zones in order to bring this well on production. The previously approved Sundry 313-357,unsuspends the Otter#1 well and performs only an enzyme/methonal treatment on the lower most zone. Further analysis indicates this will be ineffective and a simpler treatment is planned. CIE requests Approved Sundry 313-357 be resinded and replaced with this Sundry application. CIE also requests permission to flare test for 7 days if the well is successfully brought on. The Otter#1 well was completed in July 2012 and has been unsuccessful coming on to production. A frac was performed in September 2012,but was ineffective and we were unable to get production from the 57' of perforations we are seeking to treat now. Maximum anticipated surface pressure: 2838 PSI If you have any questions, please contact me at(907)-433-3816. Sincerely, peey, Conrad Perry Drilling Manager—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • • Table of Contents Current Wellbore Schematic 4 Well History 7 Maximum Anticipated Surface Pressure 7 Location Schematic 8 Wellhead Schematic 9 3IPage • 0 Current Wellbore Schematic Cook Inlet Energy_ Otter #1 Completion Diagram Conductor .` U` i 10 3/4",45.5#,L-80, BTC(ID=9.95") lis: , \�,,^ 2-3/8",4.7#, J55, E U E Set @157 MD/TVD :i,',,',.:... V\A• Tubing(Coupling OD=3.063") . 61?. 4rikitri V.,, ,1%.,- -;1•S' ('A1' 'ON fr v• ''�v1f\' yJ:i 3:,' �J:i r%-zP'' Chemical injection mandrel with'/4 4v. • '�^ control lines @ 2599'MDTTVD '\vim ��^ Surface: 8 1/2"Hole 4v v :�\.i 7,',23#,J-55, LTC(ID=6.151") w % PX Plug @ 3502'MD Set@ 2092' MD/TVD N, pi '\�! 14 3 •" Sliding Sleeve @3520' MD/TVD Perforation Intervals: •is I �; � : Retrievable Packer @3555'MD/TVD Zone:1=258' '' � 3706'-3714'=8' .4 0 i ' Sliding Sleeve @3687'MD/TVD 22' 3800'-3804'=4' 4.• 3852'-3854'=2' ` /M $_3 3916'-3920'=4' 3960'-3964'=4' v � v Retrievable Packer @ 4104' MD/TVD Zone:2=252' y 0 , Sliding Sleeve @4205' MD/TVD 4240'-4245=8' .,r .^ S TOM S Z 18' 4270'-4274'=4' ',/ v 4403'-4406'=3' . 4489'-4492'=3' �,,; +1/ Permanent Packer @ 4551'MD/TVD v Zone:3=669' ✓ S?"//14 ( 4710'-4725'=15 '. XN nipple @ 4648'MD/TVD 4986'-4994'=8' 4986'4994'=8' Mule Shoe @ 4679'MD/TVD 5014'-5018'=4' .moi. 127' 5094'-5144'=50' 5108'-5115=10' vvv' `% Production:6 1/8"Hole 5140'-5150'=10' '''�N%S' 4 1/2",11.6#,WT-80,LTC (Drift ID=3.875") 5166'-5173'=7' TD:@ 5686'MD/TVD 5198'-5208'=10' 5269'-5279'=10' 4jPage • • Otter Revised Stimulation Program — 10-14-13 Mobilize Coil,N2, Pollards wireline w/Pressure-Temperature tools, and 2 iso's Diesel/1 methanol. Flow Test 1 1. Perform Pre-Job Safety Meeting with all personnel. 2. Pull BPV. 3. RU Wireline lubricator and test to 1500 psi. Recover tubing plug from 3502' 4. Open bottom two sliding sleeves, leave top one at 3530'closed. Note, Upper sleeve has had a tendency to slide open when tools are run through it. 5. Make tag run to TD for fill. AjA-4.k� 6. Rig down Wireline. 7. Rig up and test flow line and test equipment to 3,000 psi. 8. Rig up coil. Test BOPs and lubricator to 3000 psi. 9. RIH to TD with 1 1/2" coil lifting well with N2 from bottom 10. Put well to test. 11. If no gas, POH with Coil. Rig down Injector head. Stimulation 1 12. Rig up and test Wireline lubricator to 1500 psi. RIH and close all sleeves. _13. Rig up Pollard Hot Oiler and test lines to 400010. — Lt SO° 14. Fill Hot Oiler with 60 bbls diesel. Heat to 170 degrees F. 15. Bull head diesel down tubing at maximum rate. Maximum pressure—4000 psi. 16. Repeat steps 12�and 1 but with 40 bbls diesel and 20 bbls methanol. 17. Record Pressures. Monitor annulus pressures at all times. 18. Run Pressure Temperature bomb to determine where diesel went. 19. Rig down wireline. 20. RU and Test Coil Injector head. 21. RIH to TD with 1%2" coil lifting well with N2 from bottom 22. Put well to test. 23. If no gas, POH with Coil. Rig down Injector head. 5 Vit. • • Stimulation 2 24. Rig up and test wireline lubricator to 1500 psi and set plug in XN nipple at 4648'. 25. Open Sliding sleeve at 4,205'. 3 ` 26. Rig up Pollard Hot Oiler and test lines to_4000 psi. / • 'S i 27. Fill Hot Oiler with 40 bbls diesel/20 bbls Methanol. Heat to 170 degrees F. 28. Bull head diesel down tubing at maximum rate. Maximum pressure—4000 psi. 29. Record Pressures. Monitor annulus pressures at all times. 30. Rig down wireline. 31. RU and Test Coil Injector head. 32. RIH to Plug at 4658' with 1%2" coil lifting well with N2 from bottom 33. Put well to test. 34. If no gas, POH with Coil. Rig down Injector head. Stimulation 3 35. Close sliding sleeve at 4,205'. Open Sleeve at 3,687' wsao r 36. Rig up Pollard Hot Oiler and test lines to,4000 psi. 37. Fill Hot Oiler with 40 bbls diesel/20 bbls Methanol. Heat to 170 degrees F. 38. Bull head diesel down tubing at maximum rate. Maximum pressure—4000 psi. 39. Record Pressures. Monitor annulus pressures at all times. 40. Rig down wireline. 41. RU and Test Coil Injector head. 42. RIH to XN plug with 1%2" coil lifting well with N2 from bottom 43. Put well to test. 44. If no gas, POH with Coil. Rig Down Coil/Wireline/test 61P r • • Well History Spud- May 18, 2012 Complete- July 17, 2012 Frac-September 30, 2012 Suspend- December 13, 2012 Maximum Anticipated Surface Pressure: Based on offset welldata and a pore pressure of 9.6ppg =5686'*9.6ppg*.052 =2838 PSI 7IPage • • Location Schematic Protracted Section Line ---N 4_:-..-,_-___.._ 0; A ,......_. SEC 12 14N R1 OW SM AK g a BMX +m I 8 I FIEF Ti NIOMB 1.MSC IIRPM F*AONTM.J4 11 i VERT1CALCff�f ORR CETERA/1E6 MIN NM OPUS 101.111101I FIiCM 01115 EASE SWIMS MINE RD JJ mow 9 *PIDAINEP ANO•AN W PIO OWE"ONERWED D1fWIZ ON MO CONTROL PORTIO :Ml'NADIR a. SPE4B 121141=rum BB= Pk 20311117.1116 C 411Y2I7,1SE!LZ%' flON;1IRL41 s� GEM CS NR11D46 DATUM �~^ti„_ FROMETII PNOTRACfEddECIlON -,_- , I*MAMMA vei✓MON La.'vial �.- ; .EEO FXiRDA. IW OONV6iIIlON. IRATTER NI \ \ ak. ,,,,,N,A, ,, 'k\7.10‘\ ill .s ii P-i I .."dr.r Oft ',CV:304r ie. ler+A \ \ 11faati �* 4 \ \ � '11)`+OTTD `t/O. 2 v. s . N:2675742583 ''+.. E'327463.31R \a�'\ LAT: 8119'12.175'N ;;'-'r. •TIER N0. 1 `\ LONG:15o B'*4.912'W" :,. N:267 7O. 1 ASP ZONE 4'NAIl27 \ \ E:327434.010.3 ELEV. 180.0' N V,„ LAT: 8119'11.953'N 4, �`. LONG:110156'55.404'W �+ 1 \ELEV.\ ASP MO'MO'NA4 O �I1 8 \ maw OTTER WELL PAD DONSiRUCTICN 4611" PROTRl hEDSEC.12 '..pm• MN,RI MN,SM,AR mot "+a 0....t Sill "ribMCLANECONSULTNOINC. ns PROPOSED OTTER WELD No.18F2 ?MOO em.��-,.T.. AS-STAN SURFACE LOCATION DIAGRAM W 16 MIN 7 r '1 Lie IIIIanlsf-NOME Ivq..¢ws m„�s e49.=44 COOK MET DEWY .Or ��� P.O. i�34 1 Ir 1 Consas ha 111"'a"MMONI ANCRORA D,NC ono 8lPage I 0 Wellhead Schematic ' a GE Oil &Gas I- •21.C' .. .e".; !....•• ......,, . .7-' F ..I.: VI'we It tutillt ity ...— . r1/4 tki:0 . ... .t,. 3 4.1Z•A' girialii •VI•4•1 11,..14.4 L, I 21 rv4 PVT-'----; ,•"1,1 rLt) -. -4411": , L,_-.... ,.., , • t(?)..,:..L1 rin/ . iftvmEr----- 1,-- : - ,r, I.• • IVA''AA I .1,,..-.. 1,6,el.e...1,0 lee 1-7 tram.,a'Se:IX 1 Lau l'.:13..e."Z:.:I,I-I'al.I ,eeeel.ervl er,Itele,i,.I Iri..2 e•rel.ervA,rprogropel 1..6,1.R COOK INLET ENERGY LLC ,,,,,,,. A,i.,,,,,,,,,,,y,IN,,,,...1,A,'J.,,,i,, e x.;-751.1 erems15-...1!..11 n:e.rmae 131. le Ili L•ete.I'vrae u Lue.e.:I... OTTER#1: ni-,4.A.N I I3TF 1 10- 7-5/8"..3/1"x x 5-11.2''x 2-7/K 5M LSI-I/Convention10FEB12al Wellhead Aeinbly. With T-ED5 Tubing Heed, T-M411-CCL ro-44 21111C El 3 IN Tubing Hancer and Adapter Flange ci.6.v...1.117,Nr.-.. P.E2139Y-A Wage S Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, October 15, 2013 1:22 PM To: 'Conrad Perry' Cc: courtney.rust@cookinlet.net; "Barbara Kruk"; 'Stephen Ratcliff'; drilling.foreman@cookinlet.net;evan.harness@cookinlet.net Subject: RE: Permit to Drill No:212-028/ retract Approved Sundry 313-357 Conrad, You have verbal approval to perform the diesel/methanol stimulation as proposed in your latest procedure. New sundry number is 313-547. I have a copy of your sundry application in hand and will be processed in the next day or so. Make sure you contact the inspectors to witness the CT BOP test and have a copy of this email and your sundry application/procedure on location. The previous sundry 313-357 will be retracted as requested. Guy Schwartz Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Conrad Perry [ s, conrad.perry@cookinlet.net] Sent: Tuesday, October 15, 2013 11:08 AM To: Schwartz, Guy L (DOA) Cc: ..)urtney.rust@cookinlet.net; "Barbara Kruk"; 'Stephen Ratcliff; drilling.foreman@cookinlet.r ; '-t.net Subject: Permit to Drill No: 212-028/ Approved Sundry 313-357 Guy, Cook Inlet Energy requests verbal approval to proceed with the Otter#1 Stimulation program as per the Sundry Application submitted on 10/14/2013 with the revisions as discussed this morning concerning the clean out run and increased test pressures to 4,500 psi. I have included those revisions in the attached program. On approval, we request the AOGCC to rescind the previously approved Sundry Application 313-357. 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(apcookinlet.net • CONFIDENTIALITY NOTICE:This e-mail transission 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. 2 • • • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, October 15, 2013 1:22 PM To: 'Conrad Perry' Cc: courtney.rust@cookinlet.net; "Barbara Kruk"; 'Stephen Ratclif; drilling.foreman@cookinlet.net; evan.harness@cookinlet.net Subject: RE: Permit to Drill No: 212-028/ retract Approved Sundry 313-357 Conrad, You have verbal approval to perform the diesel/methanol stimulation as proposed in your latest procedure. New sundry number is 313-547. I have a copy of your sundry application in hand and will be processed in the next day or so. Make sure you contact the inspectors to witness the CT BOP test and have a copy of this email and your sundry application/procedure on location. The previous sundry 313-357 will be retracted as requested. Guy Schwa z Senior Petroleum Engineer AOGCC 907-444-3433 cell 907-793-1226 office From: Conrad Perry [ ] Sent: Tuesday, October 15, 2013 11:08 AM To: Schwartz, Guy L(DOA) Cc: courtney.rust©cookinlet.L_: ; "Barbara Kruk"; 'Stephen Ratcliff; drilling.foreman@cookinlet.r ; Subject: Permit to Drill No: 212-028/ Approved Sundry 313-357 Guy, Cook Inlet Energy requests verbal approval to proceed with the Otter#1 Stimulation program as per the Sundry Application submitted on 10/14/2013 with the revisions as discussed this morning concerning the clean out run and increased test pressures to 4,500 psi. I have included those revisions in the attached program. On approval, we request the AOGCC to rescind the previously approved Sundry Application 313-357. 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 • • 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. 2 4!?* %% 4' STATE Alaska Oil and Gas Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue OFL' S p. Anchorage, Alaska 99501-3572 ALAMain: 907.279.1433 Fax: 907.276.7542 Conrad Perry Drilling Manager Cook Inlet Energy c\ ^ Q as 601 W 5t Ave., Suite 310 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Otter#1 Sundry Number: 313-357 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, P4e.(414 ., Cathy P. oerster Chair DATED this 14-day of July, 2013. Encl. • • V RECEIVED STATE OF ALASKA ,\ti ALASKA OIL AND GAS CONSERVATION COMMISSION JUL 0 9 2013 APPLICATION FOR SUNDRY APPROVALS f�®GCC 20 AAC 25.280 1.Type of Request: Abandon❑ Plug for Redrill❑ Perforate New Pool❑ Repair Well❑ Change Approved Program ❑ Suspend❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension❑ Operations Shutdown❑ Re-enter Susp.Well❑� 0 Stimulate❑., ' Alter Casing ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: COOK INLET ENERGY. Exploratory ❑.. Development ❑ 212-028'' . 3.Address: 6.API Number: Stratigraphic ❑ Service [II 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20163-00 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in thi: 20AAC25.055 Will planned perforations require a spacing exception? Yes ❑ No ❑., OTTER#1. 9.Property Designation(Lease Number): 10.Field/Pool(s): ,°.•01`,1, 390579 EXPLORATORY 11. PRESENT WELL CONDITION SUMMARY Total Depth.MD(ft): Total Depth TVD(ft):v Effective Depth MD(ft): Effective Depth TVD(f�, Plugs(measured): Junk(measured):{ 18,001' S 6� 17A1At 18,082' 5,-2r410, ,tItIlb NONE --14,319' /01I2 Casing Length Size MD TVD Burst Collapse Structural Conductor 157' 10 3/4"L80 157' 157' Surface 2,096' 7"J55 2,096' 2,095' 4,360 3,270 Intermediate 5,637' 4 1/2"L80 5,637' 5,604' 7,780 6,350 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3,706'-5,279'= 3,695'-5,151' 2 3/8"4.7# J55 4,680' Packers and SSSV Type: 1 permanent,2x retrievable Packers and SSSV MD(ft)and TVD(ft): NO SSSV NO SSSV 3,555'MD/3,546'TVD,4,104'MD/4,088'TV w SS I Mi) I 12.Attachments: Description Summary of Proposal ❑ 13.Well Class after proposed work: Detailed Operations Program 2. BOP Sketch ❑ Exploratory ❑, - Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 24-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 907-433-3809 Email courtnev.rust(c�cookinlet.net Printed Name Conrad Perry Drilling Manager Title 7/9/2013 / i Signature / Phone Date 4- COMMISSION USE ONLY Conditions of approval: Notify Commis/so that a representative may witness Sundry Number: 3313-3S-7G Plug Integrity ❑ BOP Test i Mechanical Integrity Test ❑ Location Clearance ❑ Other: ', 30� ,'' ) —r 3 �_. RBBMS JUL 13 20A Spacing Exception Required? Yes ❑ No ® Subsequent Form Required: /6_ go 11 c1- APPROVED BY Approved by: `�'_ COMMISSIONER THE COMMISSION Date: 7-1 Z •-!3 Submit Form and Form 10-403(Revis d 10/2012) Ap I' i�" valid for 12 months from the date of approval. sin Duplicate I a IN A L. 7-a.-1.3 „xe u • • Cook Inlet Ener RECEIVED — f . gY- JUL 092013 AOGCC July 9, 2013 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application for activation and acid treatment Cook Inlet Energy, LLC: Otter#1 Permit to Drill No: 212-028 Dear Ms. Foerster, Cook Inlet Energy(CIE) hereby submits a a sundry application to unsuspend the Otter#1 well and perform an acid treatment to stimulate the well and bring on production. CIE also requests permission to flare test for 7 days if the well is successfully brought on. The Otter#1 well was completed in July 2012 and has been unsuccessful coming on to production. A frac was performed in September 2012,but was ineffective and we were unable to get production from the 57' of perforations we are seeking to treat now. Maximum anticipated surface pressure: 2838 PSI If you have any questions,please contact me at (907)-433-3804. Sincerely, Conrad Perry Drilling Manager—Cook Inlet Energy 10-403 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax • 0 Table of Contents Current Wellbore Schematic 3 Procedure 4 Well History 5 Maximum Anticipated Surface Pressure 5 Location Schematic 6 Wellhead Schematic 7 2IPage • • Current Wellbore Schematic Cook Inlet Energy_ Otter #1 Completion Diagram t Conductor: il; ;�: w 2-3/8",4.7#,J55,EUE 10 3/4",45.5#,L-80, BTC(ID=9.95") ,,:',1. - Set @157'MD/TVD :� 0.N' .• Tubing(Coupling OD=3.063") ;C 1y 0,'s,- v v `%�'' Chemical injection mandrel with 1/4" rrti• , ti•ipi- 4: �;,,� control lines @ 2599'MD/TVD Surface: 8 1/2"Hole .v �: ' 7",23#,J-55,LTC(ID=6.151") 4v• v:'N' PX Plug3502' MD Set@ 2092'MD/TVD *' • r.,,-s,.- ,,..„:,, @ . O Sliding Sleeve @3520' MD/TVD so Perforation Intervals: v ,"��* Retrievable Packer @3555'MD/TVD Zone:1=268' :::;', v 3706'-3714'=8' ,% Li ;;;# Sliding Sleeve @3687' MD/TVD - 22' 3800'-3804=4' '-itv 3852'-3854=2' ,j ;% 3916'-3920'=4' ',*y R 3960'-3964=4' �; r 3% v� v Retrievable Packer @ 4104' MD/TVD v v 0 `J• SlidingSleeve @4205' MD/TVD ✓' Zone:2=262' ,r- v 4240'-4248'=8' 0 18' 4270'4274=4' . 4403'-4406'=3' `r '� 4489'4492'=3' mt v y! v Permanent Packer @ 4551'MD/TVD Zone:3=669' .fir v 4710'-4725'=15' '� XN nipple @ 4648'MD/TVD 4770'-4773'=3' ,v 4986'-4994'=8' 4.1 ttpMule Shoe @ 4679'MDTTVD 5014'-5018'=4' vt .e. 127' 5094'-5144'=502 Production:6 1/8"Hole 5108'-5118'=104.4 wt`;ti";y` ► _4114660'-,_55115703'1107 4 1/2",11.6#,WT-80,LTC (Drift ID=3.875") ,v)Q 5198'-5208'=10' TD:@ 5686'MD/TVD 5269'-5279'=10' 3IPage • S Procedure 1. Pull BPV. 2. Ru Wireline lubricator and test to 1500 psi. Recover tubing plug from 3502' 3. Open bottom two sliding sleeves, leave top one at 3530' closed. 4. Rig down Wireline. 5. Rig up BJ coil. Test lubricator to 3000 psi. Rig up and test flow line to test equipment. 6. RIH to TD with 1 3/" coil lifting well with N2. 7. Put well to test. 8. If no gas,Rig down N2 and coil 9. Rig up and test Wireline lubricator to 1500 psi. RIH and close all sleeves. 10. Rig Down wireline. 11. Rig up and test coil lubricator to 3000 psi. I vs 12. Set Inflatable Bridge Plug as per tool operators specifications via 1 3/" coil @ 5160' POH ` 13. RIH with inflatable test packer on coil to 5080'.Set packer isolating perforations-5094'-5150' 14. Establish injection rate with 3% KCL. Record Pressures. Monitor annulus pressures at all times. 15. Pump at matrix injection pressures so as to not break down the well (Note: breakdown pressure during the frac noted at 7,494psi Bottom Hole) a. 10,000gal 50:50 Methanol blend b. 169,100 SCF of N2 (One transport load) c. 420ga1 3% KCL spacer(inhibited) d. 500gal Mudzyme Treatment e. Flush to end of coil with 3% KCL or N2 (Do Not Over Displace!) 16. POH. Rig down coil 17. Shut in, soak formation 2-5 days 18. Put well to test. Rig up and swab well or N2 lift as needed. 4 • • Well History Spud- May 18, 2012 Complete- July 17, 2012 Frac-September 30, 2012 Suspend- December 13, 2012 Maximum Anticipated Surface Pressure: Based on offset welldata and a pore pressure of 9.6ppg =5686'*9.6ppg*.052 =2838 PSI 5IPage 0 • Location Schematic _ ____ f _ Profracted Section Line _____ .._........,...: _ SEC 12 14N RIM SM AK g SCALE E 4 MD MO I i FM' Ia NOTES Iii II 1.MR OFHORROFFIX P/S) Iii i vERnar4LocranaL WAS DEMUINED RIM NOS CPUS SCUP=F11OS1 COIRS SOSO STATICIII WHOM D. 911811 P ID AMIEr MO•ANC2 a PI D MAW OBSEISMED 0111W12 ON MCI LICSORCIL PONT SD ;ASP RADII a. ZONE 4 EPOCH 2003 MTh ii Pia= 1111111751147.114 M 141172r4lf 1LE4IC1011;14111.21 `•--... OEM 0111UNDIR WRAP 2)=ROM LNE CMOS DETERISMED '--...„.:N".--,... — — ....._ FROM THE PROTRACIED lEellON _ ---\\ 4* CORM SCULL 3)OCRIFIRXIIN VERSION MALI VMS %USED RIR OVUM CONVERSION. „...-, -_,....- --„,„ %C. <OP It 111.-OTTER 01 1,801? 7 1 N\ .17/1$: -...It IN 41S \\ \ ''%1\'L 40er- '', 1 ,1111\\. 1;114.' .'li 0 of S \ ie. \ , \ ,14%,._ %No AP. '', 'k. 7:6\ tok.4221, Per NIMIE/h., 4-‘,mins..."44. \ 11116 ile 4 \ I\ 14/&\\ -41.-.Z. 1::;t41444. 4, 16 \. "9" ' \ ,.. 4, 11# N it& \\I \.y\\ \OTTER ftp. 2 v.,.. Ni2075742.*3 . ii E427463.370 .....:. •... LAT: 111-1912.175-N\ LONG:15038'114.912"W \ %-- •J. *TIER NO, 1 \ ASP ZONE 4NAD27 \ \ N:20707_20.301 ELEV. 160.0' NAVDB8 \ E:327439.010 \ \ , LAT :6119'11.953N ,. \ , \ , U3r4M TADEB.5&404,-W N. N. \, ASP Z E 4 NAD27 \ELEV. 1 BOX' NAVD8B \ \ 1 , now CRTER WELL PAD OONSTRUOTION ""`"" PROTRACTED SEM 12 =mot ill T14N,RIM,91fir AK am nvot 11111111111111et SW 00IK kb, MCLANE CONSULTING INC. meow PROPOSED QTTER WELLS MX'I S.2 soma Ift411111 11110111•11.111,TINT110 AS-STAKI33 SURFACE LOCATION DIAGRAM 444414 MN rrirr"... .4 IIIIIMEM-NOPRIIII PAIIIIIIMI IRIPIIIRL WO _ ~Ir.=IC INLET'ENERGY NIT romaimmas P.O.OCR ECM 1 1. 1 amitimmum Conally lis 111111MION1111/101111 ,ANCISSW3e,AK IMOD 61Page • • Wellhead Schematic ngoGE Oil&Gas :, t ',.../, ITT,rill",i .I.. ,,. ,... •Y.....,i , i I , ..1‘itil -iii ..741160*. . 1*- 4:4 1.11.10 14. 2a=..• I ._441p1 _pi em 2 i 114-; +iii • :•111 , ,i c If I N''' —. ''''',' I ti _ _ 7,, I-U,...- 1 z: MINI ' t 1___1 IVA'mai i C.:Ci I.Unlitnsz-hz.1,1 J•411i i 0.4,n...eel 4-.1114,t.t tine ret re.tri-rirrowl h AM ri; COOK INLET ENERGY LLC ,...". a li,...11.1.101 II Lk(1...11.4..1.M11 ANL 0...n vii..... ‘V..-rknvl vvvr'n It........h.•.*:L r..,IS U..I'vrh,L.L,L1-.• ()TIED 41 Pl'os'A'N '1 O-5/4"x 7-5/6"x 5-112"x 2-7/5"5M LSI-I/Conventional I BTF 10F EB1 2 Wellhead Assembly.With T-CBS.Tubing Head T-M40-CCL ,-.4,21111.litcr 0141Y Tubing hangar and Adapter Flange ri.p.mc.NO. AE21 39Y-A 7 I • • Water Treatment Operator Name: COOK INLET ENERGY LLC EMI Well Name: OTTER#1 BAKER Job Description: Water Block Treatment(N2 Option) HUGHES Date: June 19,2013 Proposal No: 1001161544A JOB AT A GLANCE Surface Treating Pressure(max) 3,160 psi Slurry HHP(avg) 144 hhp Total Rate(max) 2.00 bpm Slurry Rate(max) 2.00 bpm Nitrogen Rate(max) 186 scfm Estimated Pump Time(HH:MM) 15:32 Nitrogen Pumped Volume 147,938 scf Nitrogen Cooldown Volume 21,100 scf Treatment Fluid 10,000 gals 50:50 Methanol Spacer 949 gals 3%KCL Treatment Fluid 500 gals Mudzyme Treatment Over-Flush 66,852 gals Nitrogen c,,ttodorr Jure 27,21!13501;" Page 1 Have more questions? You can find us at: http://www.bakerhughe s.com/products•and•servlc es/pressure-pump)ng 8H • • Operator Name: COOK INLET ENERGY LLC rat. Well Name: OTTER#1 BAKER Job Description: Water Block Treatment(N2 Option) HUGHES Date: June 19,2013 Proposal No: 1001161544A WELL DATA RESERVOIR DATA Depth to Middle Perforation 5,122 ft Fracture Gradient 0.81 psi/ft Bottom Hole Fracture Pressure 4,149 psi Bottom Hole Static Temperature 111 "F PERFORATED INTERVAL DEPTH(ft) Pert Diameter MEASURED TRUE VERTICAL (in) 5,094- 5,150 5,094- 5,150 Total Feet Perforated 56 ft TUBULAR GEOMETRY TDo Bottom Tubing 2 3/8"O.D. (1.995".I.D) 4.7# 0 4,679 Casing 41/2"0.D. (4.000".I.D) 11.6# 0 5,686 Coil Tubing 13/4"O.D. (1.500".I.D) 2.169# 0 5,050 End of Tubing 4,679 ft Pump Via Coil Tubing Report PMG on June 27.20195:5/Pt, Page 2 Have more questions? You can find us at: http://www.b ak erhughes.com/products-and-serviceslp ressure-pumping 9 .ii,! • • Operator Name: COOK INLET ENERGY LLC Veil Well Name: OTTER#1 Job Description: Water Block Treatment(N2 Option) HUGHES Date: June 19,2013 Proposal No: 1001161544A FLUID SPECIFICATIONS Treatment Fluid:50:50 Methanol 10,000 Gallons Base: 50% Fresh Water 50% Methanol,55 gl drum Components: 2 gpt Clay Master-5C Clay Stabilization Product 2 gpt ClayTreat 3C Clay Stabilization Product Over-Flush:Nitrogen Gas Volume. 66,852 Gallons Pumped Liquid 62,134 Gallons Pumped Gas Volume: 148 Mscf Nitrogen Treatment Fluid:Mudzyme Treatment 500 Gallons Components: 250 ppt Potassium Chloride Salt 20 ppt Ferrotrol 900 Iron Control Product 5 gpt InFlo 250W Surfactant 5 ppt Fumaric Acid Buffers/pH Control Product 2 gpt Clay Master-5C Clay Stabilization Product Spacer:3%KCL 949 Gallons Components: 250 ppt Potassium Chloride Salt 5 gpt InFlo 250W Surfactant 2 gpt Clay Master-5C Clay Stabilization Product 10,000gal treatment+140 bbl of N2 down hole volume will yeild 7'of radial penetration. Mudzyme SIX to be mixed with 3%KCL base water to target Xanthan and Starch based polymers. Mix includes: 250 ppt KCL 10 gpt GBW-16C 50 gpt GBW-14C 20 ppt FE-900 5 gpt Inflo 250W 2 gpt Clay Master 5C Fumaric Acid is to be used to obtain a final mixed pH of 3.5-4.5 Report PM1ted en. June 27,913 5,57 PM Page 3 Have more questions? You can find us at: http:/lwww.bake rhugh es.com/products-and-servl ces/pressure-pumping 10 • Operator Name: COOK INLET ENERGY LLC V//i1 Well Name: OTTER#1 Job Description: Water Block Treatment(N2 Option) 1 fll6HE5 Date: June 19,2013 Proposal No: 1001161 544A ACID TREATMENT SCHEDULE NITROGEN GAS SYSTEM INPUT PARAMETERS TVD Depth(Mid Perforation) 5,122 ft MD Depth(Mid Perforation) 5,122 ft Bottom Hole Frac Pressure 4,149 psi Bottom Hole Static Temperature 111 "F Fluid Specific Gravity 1.000 Fluid Temperature in Tanks 55°F Nitrogen Temperature at Surface 80°F Top Bottom Tubing 2 3/8"D.D. (1 995"I.D.) 4.7# 0 4,679 Casing 4 1/2"O.D. (4.000"I.D.) 11.6# 0 5,686 Coil Tubing 1 3/4"O.D. (1 500"I.D.) 2.169# 0 5,050 CALCULATED TEMPERATURES Maximum Minimum System at Wellhead 55°F 55"F System at Perforation 59`F 59°F CALCULATED RATES,PRESSURES&HHP REQUIREMENTS Maximum Minimum Average Surface Treating Pressure(psi) 3,160 2,944 3,108 Fluid Rate(bpm) 2.0 1.9 1 9 Nitrogen Rate(scfm) 186 186 186 Fluid Hydraulic Horsepower 155 142 144 I� Nitrogen Solubility(scf/bbl) 25 25 25 Volumes,Rates and Qualities are based on Downhole Temperature and Pressures. R.tPtlrtdmMe 2.7,5135:97,5 Page 4 Grn147 Have more questions?You can find us at: http:/lwww.bakerhughe s.c om/product s-and-services/pressure-pumping 11 1P' age . . • 0 Operator Name: COOK INLET ENERGY LLC FIr. Well Name: OTTER#1 BAICER Job Description: Water Block Treatment(N2 Option) E.S Date: June 19,2013 Proposal No: 1 0011 61 544A ACID TREATMENT SCHEDULE NITROGEN GAS SYSTEM RATE SCHEDULE Downhole System Wellhead Rates Clean Base Fluid Total Clean Clean Nitrogen Diverting Stage Volume Description Rate System Fluid (scfm) Agent (gal) (bpm) (bpm) (bpm) (unit/min) 1 I10000 50:50 Methanol 2.0 2.0 2.0 0 2 66852 Nitrogen 2.0 2.0 1.9 186 3 I 420 3%KCL 2.0 2.0 2.0 0 4 500 Mudzyme Treatment 2.0 2.0 2.0 0 5 I 529 3%KCL 2.01 2.0 2.0 0 FLUID&GAS QUANTITIES Surface Stale Totals Surface Cumulative Totals Mitchell Quality Average Stage Clean N2 Clean N2 W P F Specific (bbls) (Mscf) (bbls) (M % % % Gravity 1 I 238.1 0.001 238.1 0.00 0 0 0 1 0.861 2 1717.5 147.94 8 7 7 3 I 1410.0 140.001 1727.5 147.94 0 0 0 1 11.0118 411.9 51 12.6 0.001 1752.0 147.94 0 0 0 1 1.011 NOTE: The Mitchell Quallity is the Gas Rate divided by the Gas+Gel Rate. PROCEDURE Downhole Volumes Diverting Agent Surface Clean Treating Stage System Fluid Conc. Type Stage Cum Cum Pressure (gals) (gals) (bbls) (pda) (volume) (lbs) (b.s.) (psi) 2 1 1 66852 62130 4 1479.41 N2 Overflush Methanol 1 31033163 3 420 420 10.0 3%Kcl Spacer 2943 4 500 500 11.9 Mudzyme 2943 5 529 529 12.61 3%Kcl Flush I 2943 Totals' 78301 73583 1752.01I Volumes,Rates and Qualities are based on Downhole Temperature and Pressures. Page 5 Grata] Have more questions?You can find us at: http://www.bakerhug he s.c o m/products-and-services/pressure-pumping 12IPage . . . • Operator Name: COOK INLET ENERGY LLC RINI Well Name: OTTER#1 KER Job Description: Water Block Treatment(N2 Option) N UGHES Date: June 19,2013 Proposal No: 1001161 544A ACID TREATMENT SCHEDULE NITROGEN GAS SYSTEM TREATMENT SCHEDULE Wellhead Rates Clean Volume Without Stage Total Clean N2 Diverting N2 Pump Pump Stage Fluid N2 Conc. Agent Time Time (bpm) (scfm) (scflbbl) (unit/min) (bbls) (cum) hh:mm:ss j hh:mm:ss 1 01:59:02 01:59:02 2 I 1.9 186 100 I 1479.4 17177.51 13:15:51 15:14:54 3 I 2.0 0 0 I 10.0 1727.51 00:05.00 15:19:54 4 1 2.0 0 0 I 11.9 1739.41 00:05:57 15:25:51 5 1 2.0 0 0 I 12.6 1752.01 00:06:17 15:32:09 Total Pump Time: 15:32:09 Treatment is designed as a waterblock treatment flushed with N2 followed by a Mud Damage treatment to soak. A minimum of 2 days soak time is recommended for to allow the Mudzymes to properly clean up the polymer damage. Mudzyme to be flushed to the end of coil. Do not over displace. Treatment should be pumped at matrix injection rates for proper fluid distribution. Volumes,Rates and Qualities are based on Downhole Temperature and Pressures. Report Prdrted on June T.?J',J::.' Page 6 Have more questions?You can find us at: http:llwww.bakerhughes.c om/pro duct s-and-services/pressure-pumping 131 . . • Mai BAKER HUGHES Proposal No: 1001154718B COOK INLET ENERGY LLC OTTER#1 QQ API # 50-283-20163-0000 r ' L' z /Z - QZ U WILDCAT Field 12-14N-10W Tyonek County, Alaska October 1st, 2012 Post Well Report Prepared for: Prepared by: David Hall Joshua Herald CEO Technical Support Engineer Cook Inlet Energy Bus Phone: 907-334-6745 Email: david.hall@cookinlet.net Mobile: 907-317-8239 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Fax: 907-776-4087 Bus Phone: 907-267-3487 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • • EMI BAKER HSS Oct 1st, 2012 POST TREATMENT REPORT Cook Inlet Energy Otter Creek Unit#1 Treatment date 9/30/12 Mr. David Hall Cook Inlet Energy Alaska 601 W. Stn Avenue, Ste. 310 Anchorage, AK 99501 907-433-3804 office 907-317-8239 cell Mr. Hall, Please find attached our well report of the fracture stimulation treatment on the Beluga formation on the above-mentioned wellbore. The well tubulars consisted of a 7" 23# surface set at 2,092' and a 4-1/2" 11.6# production string set at 5,686' with a completion string consisting of 2-3/8"4.7#set at 4,679'. The fracture treatment consisted of 29,681 gallons of Lightning 2000 with 51,200 lbs of 20/40 mesh Carbolite and 6,000 lbs of 12/20 mesh FlexSand ramped up to 6 psa, and was pumped at an average rate of 11.4 bpm. H2O Proppant Pad 6,594 gal 157# Treatment 22,260 gal 57,043# Flush 827 gal 0 Baker Hughes appreciates the opportunity to perform pumping services for you in a cost- effective manner that focuses on safety, quality and the enhancement of your property's value. Please let me know if you have any questions �4. District Engineer Kenai,Alaska (907) 393-8303 • i r1 BAKER HUGHES Proposal No: 1001154718B COOK INLET ENERGY LLC OTTER#1 API # 50-283-20163-0000 WILDCAT Field 12-14N-10W Tyonek County, Alaska October 1st, 2012 Fracturing Proposal Prepared for: Prepared by: David Hall Joshua Herald CEO Technical Support Engineer Cook Inlet Energy Bus Phone: 907-334-6745 Email: david.hall@cookinlet.net Mobile: 907-317-8239 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Fax: 907-776-4087 Bus Phone: 907-267-3487 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • • Operator Name: COOK INLET ENERGY LLC ri`I Well Name: OTTER#1 BAKER Job Description: Zone Three Conventional Frac HUGHES Date: August 13, 2012 Proposal No: 1001154718B JOB AT A GLANCE Surface Treating Pressure (max) 4,863 psi Total Rate (max) 12.00 bpm Estimated Pump Time (HH:MM) 00:53 Frac Fluid 23,679 gals Lightning 2000 Flush 780 gals Linear Gel Proppants 43,751 lb CARBOLITE, 20/40 ✓ 6,250 lb FlexSand MSE, 12/20 mesh Repos Pouted on September's Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: COOK INLET ENERGY LLC V I Well Name: OTTER#1 BAKER Job Description: Zone Three Conventional Frac HUGHES Date: August 13, 2012 Proposal No: 1001154718B WELL DATA RESERVOIR DATA Formation Type Shaley Sandstone Depth to Middle Perforation 4,995 ft Fracture Gradient 0.83 psi/ft Bottom Hole Fracture Pressure 4,145 psi Bottom Hole Static Temperature 110 ° F PERFORATED INTERVAL DEPTH(ft) Perf Diameter MEASURED TRUE VERTICAL (in) 4,710 - 5,279 4,710 - 5,279 Total Feet Perforated 569 ft TUBULAR GEOMETRY Top Bottom Casing 4 1/2" O.D. (4.000" .I.D) 11.6# 0 5,686 Tubing 2 3/8"O.D. (1.995" .I.D) 4.7# 0 4,680 End of Tubing 4,680 ft Pump Via Tubing Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • Operator Name: COOK INLET ENERGY LLC V i Well Name: OTTER#1 BAKER Job Description: Zone Three Conventional Fracr7 ES Date: August 13, 2012 Proposal No: 1001154718B FLUID SPECIFICATIONS Frac Fluid: Lightning 2000 23,679 Gallons Components: 250 ppt Potassium Chloride Accelerator 5 gpt GLFC-5D Gelling Agent 2.5 gpt BF-7L Buffers/pH Control Product 2 ppt High Perm CRB-LT Gel Breaker 1 gpt Clay Master-5C Clay Stabilization Product 1 gpt Enzyme G-I Gel Breaker 1 gpt InFlo 250W Surfactant 0.7 gpt XLW-32 Crosslinker 0.4 gpt BC-3 Gel Breaker Flush: Linear Gel Pumped Liquid 780 Gallons Mixed Liquid Volume: 14,121 Gallons Components: 250 ppt Potassium Chloride Accelerator 5 gpt GLFC-5D Gelling Agent 2 ppt High Perm CRB-LT Gel Breaker 1 gpt Clay Master-5C Clay Stabilization Product 1 gpt Enzyme G-I Gel Breaker 1 gpt InFlo 250W Surfactant 0.4 gpt BC-3 Gel Breaker Proppants 50,002 lb 87.5% CARBOLITE, 20/40 12.5% FlexSand MSE, 12/20 mesh This job calls for 2 tanks filled to 450bbls each to yeild 177 bbl bottoms. Report Printed on: September 28.20122:26 PM Gr4127 Have more questions? You can find us at: http://www.ba kerh u g hes.com/products-a nd-services/pressure-pumping • 410 Surface & Net Pressures ,.... Surface Pressure(psi) --BH Rate(bpm) •FA #3 Net Pressure(psi) —BH Conc. (ibm/gal) s:a, 0 4800 r .____ -- - 12.0012 .92, 280 6 4 71 V a4600 12.0008 C) I-) 200 O cu - U 0.10 440020- --- - --- -- - 12.0004 _� 2 U vs / ct 4200 ( 12.0000 400 10 20 30 40 500 Time (min) Concentration/Area (Closure) 4600 4700 lbm/ft2 0 4800 0.2 0.4 4900 0.6 0.8 . 5000 ' 1 1.2 5100 1.4 1.6 52*' 1.8 2 5300 I 2.2 0 10 20 30 40 50 60 Length (ft) Proppant Design Summary Bottom Zone Frac Length-Created 53.589 (ft) • • 'Frac Length- Propped 46.089 (ft) Frac Height-Avg. 476.81 (ft) Propped Height (Pay Zone) -Avg. 502.89 (ft) Max Width at Perk - EOJ 0.70466 (in.) Propped Width (Well) -Avg. 0.18012 (in.) Propped Width (Pay Zone) -Avg. 0.12317 (in.) Conc./Area (Frac) -Avg. at EOJ 0.97952 (Ibm/ft2) Conc./Area (Pay Zone) -Avg. at Closure 1.0783 (Ibm/ft2) Frac Conductivity (Pay Zone) -Avg. at Closure 4662.2 J(mDft) Dimensionless Frac Conductivity (Pay Zone) 6.7436 Beta 0 (atm-s2/gm) Avg. Fracture Permeability 454.2 (darcy) Propped Fracture Ratio (EOJ) 0.2429 Closure Time 128 (min) creen-Out Time 27.86 (min) Proppant Displacement & Location Distance From Distance to Screen-out From Screen-out to Sch# Screen-out (ft) (ft) (ft) (ft) No 0 14.763 3 No 14.763 ;46.089 2 No 46.089 53.262 1 No 53.262 53.589 0 • _ Operator Name: COOK INLET ENERGY LLC Mall Well Name: OTTER#1 Job Description: Zone Three Conventional Frac BAKER Date: August 13, 2012 HUGH LS No: 1001154718B FRACTURE TREATMENT SCHEDULE INPUT PARAMETERS TVD Depth (Mid Perforation) 4,995 ft MD Depth (Mid Perforation) 4,995 ft Bottom Hole Frac Pressure 4,145 psi Bottom Hole Static Temperature 110 ° F Top Bottom Casing 4 1/2" O.D. (4.000" I.D.) 11.6# 0 5,686 Tubing 2 3/8" O.D. (1.995" I.D.) 4.7# 0 4,680 CALCULATED RATES, PRESSURES & HHP REQUIREMENTS Maximum Minimum Average Surface Treating Pressure(psi) 4,864 3,826 4,710 Slurry Rate(bpm) 12.0 12.0 12.0 Slurry Hydraulic Horsepower 1,431 1,126 1,386 PROCEDURE Fluid Proppant Type Volume Conc. Type Stage Cum Stage (gal) (ppa) (lbs) (lbs) 1 'Lightning 2000 15001 Diagnostics/Cross Over 2 'Lightning 2000 45001 Pad 3 (Lightning 2000 60001 1.000 87.5%CARBOLITE, 20/40 5250 12.5%FlexSand MSE, 12/20 750 6000 4 'Lightning 2000 104291 3.500 87.5%CARBOLITE, 20/40 319391 12.5%FlexSand MSE, 12/20 4563 42502 5 'Lightning 2000 1250 6.000 87.5%CARBOLITE, 20/40 6563 12.5%FlexSand MSE, 12/20 938 50002 6 'Linear Gel 7801 Flush 50002 Total 24459 50002 Report Printed on Septemberee^8?012226 P1.2 Gr1141 Have more questions? You can find us at: http://www.bakerhug hes.com/prod u cts-a nd-services/pressure-pumping • • Operator Name: COOK INLET ENERGY LLC ri.I Well Name: OTTER#1 BAKER Job Description: Zone Three Conventional Frac HUGHES Date: August 13, 2012 Proposal No: 1001154718B FRACTURE TREATMENT SCHEDULE TREATMENT SCHEDULE Surface Rates Volume Stage Treating Slurry Clean ! Prop. Rate Slurry Fluid Pump Pressure (bpm) Fluid (lb/min) Stage Cum. Stage Cum. Time Stag (psi) (bpm) (bbls) (bbls) (bbls) (bbls) hh:mm:ss 1 4863 12.0 12.0 35.7 35.7 35.7 35.7 00:02:58 2 4863 12.0 12.0 107.1 142.9 107.1 142.9 00:08:55 3 4746 12.0 11.5 481.2 149.6292.5 142.9 285.7 00:12:28 4 4394 12.0 10.3 1513.5 289.4 581.9 248.3 534.0 00:24:07 5 4041 12.0 9.3 2355.6 38.2 620.1 29.8 563.8 00:03:11 6 3826 12.0 12.0 18.6 638.71 18.61 582.4 00:01:32 Total Pump Time: 00:53:13 Job pump schedule is a ramp as follows: 4,500gal pad 6,000gal 1# Hold 10,429ga1 1#-6# Ramp 1,250gal 6# Hold 781 gal flush Report Printf - 28 2012 2'.26 PM Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping ilo • FAWN STIMULATION TREATMENT REPORT ) BAKER HUGHES Date 30-SEP-12 District Kenai F.Receipt 1001938340 Customer COOK INLET ENERGY LLC Lease OTTER#1 Well Name OTTER#1 Field UNNAMED Location 12-14N-10W County Tyonek State Alaska Stage No 1 Well API -API 50283201630000 WELL DATA I Well Type: NEW Well Class: GAS_ Depth TD/PB: 5686 Formation: Geometry Type Tubular Type OD Weight ID Grade Top Bottom Pert Intervals TUBULAR CSG 4.5 11.6 4 0 5686 Top Bottom SPF Diameter TUBULAR TBG 2.375 4.7 1.995 0 4680 4710 5279 Packer Type Packer Depth FT TREATMENT DATA LIQUID PUMPED AND Fluid Type Fluid Desc Pumped Volume(Gals) Prop.Description Volume Pumped(Lbs) CAPACITIES IN BBLS. PAD Lightning 2000 6.594 CARBOLITE,20/40 51,200 Tubing Cap. TREATMENT FLUID Lightning 2000 22.260 FlexSand MSE,12/20 mesh 6,000 Casing Cap. PAD Lightning 2000 827 Total Prop Qty: 57,200 Annular Cap. Open Hole Cap. Fluid to Load Pad Volume Previous Treatment Previous Production _ Treating Fluid Hole Loaded With_ Treat Via:Tubing easing L�nul. tubing&Anul. r Flush 18.5606 Ball Sealers: In Stages Type — Overflush Auxiliary Materials Fluid to Recover PROCEDURE SUMMARY Time Surface Slurry Slurry Rate AM/PM Treating Pressure-Psi BBLS.Pumped BPM Comments STP Annulus Stage Total 08:30 9-28-12,Frac crew leaves yard(Mike Zepeda,Justin Baldwin,Sam Gomez,Joey Deluna,Gerardo Gonzales,Aaron Morris) 09:30 Arrive in Beluga 10:00 trip equipment to location 12:00 On location spot equipment 19:30 Crew back at camp 06:30 09-29-12 On Location,Safety Meeting,Rig up 08:00 Rest of crew in beluga,R.Junkert,J.Cress,J.Haga,M.Reemtsma, J.Herald,K.Nix,R.Selfridge 20:30 Entire crew leave to camp 07:00 09-30-12 Crew to location 07:30 Safety Meeting,KCL Tanks,bucket test 13:45 Pre job safety meeting 14:00 Prime trucks and lines _ 14:26 7680 Pressure test lines and trucks 14:31 7394 Finsh Pressure test 14:55 6520 Set popoff 15:00 0 70 Bleed lines and expose annulus to pressure transducer 15:25 96 55 0 0 Open well head 15:26 5720 265 10 8 Start pumping DFIT 15:27 5900 310 15 8 15:30 5124 381 26.3 0 Shut down and start monitoring 15:30 3295 326 26.3 0 Monitor 17:10 1657 143 26.3 0 Monitor 17:20 1579 135 26.3 0 Monitor 17:26 1524 130 0 0 Check valve line out 17:28 5600 271 1 7.2 Start pumping Pad(131 Bbl ttl) 17:30 5702 340 18 8 Pump sort 1/2 lbs scour 17:31 5740 395 27 9.7 Increase rate 17:33 5922 453 41 10.4 Reference Nukes 17:40 6380 638 111 11.4 Increase rate _ 17:42 6245 674 0 11.4 Stage 1 lbs(149 Bbl ttl) Report Printed on:September 30,2012 7'.55 PM Jr8000 fl • Frail (1/4 Treatment Report-Supplement HUGHES Date 30-SEP-12 District Kenai F.Receipt 1001938340 Customer COOK INLET ENERGY LLC Lease OTTER#1 Well Name OTTER#1 Field UNNAMED Location BJS.KENAI County Tyonek State Alaska Stage No 1 Well API -API 50283201630000 TIME Treating Pressure-Psi I Surface SlurrySlurry Rate Comments AM/PM BBLS.Pumped BPM STP Annulus Stage Total 08:30 9-28-12,Frac crew leaves yard(Mike Zepeda,Justin Baldwin,Sam Gomez.Joey Deluna.Gerardo Gonzales.Aaron Morris) 09:30 Arrive in Beluga 10:00 trip equipment to location 12:00 On location spot equipment 19:30 Crew back at camp 06.30 09-29-12 On Location,Safety Meeting,Rig up 08:00 Rest of crew in beluga,R.Junkert,J.Cress,J.Haga,M.Reemtsma, J.Herald.K Nix.R.Selfridge 2030 Entire crew leave to camp 07.00 09-30-12 Crew to location 07:30 Safety Meeting.KCL Tanks,bucket test 1345 Pre job safety meeting 14:00 Prime trucks and lines 1426 7680 Pressure test lines and trucks 14:31 7394 Finsh Pressure test 1455 6520 Set popoff 15:00 0 70 Bleed lines and expose annulus to pressure transducer 1525 96 55 0 0 Open well head 15.26 5720 265 10 8 Start pumping DFIT 1527 5900 310 15 8 15:30 5124 381 26 3 0 Shut down and start monitoring 15:30 3295 326 26 3 0 Monitor 17:10 1657 143 26.3 0 Monitor 1720 1579 135 26 3 0 Monitor 17:26 1524 130 0 0 Check valve line out 17:28 5600 271 1 7.2 Start pumping Pad(131 Bbl ttl) 17:30 5702 340 18 8 Pump sort 1/2 lbs scour 17:31 5740 395 27 9.7 Increase rate 17:33 5922 453 41 10.4 Reference Nukes 17.40 6380 638 111 11 4 Increase rate 17:42 6245 674 0 11.4 Stage 1 lbs(149 Bbl ttl) 17.55 6056 755 0 1g,Stage 1-6 lbs Ramp(289 Bbl ttl) 18:19 6167 794 0 10.. Stage 6 lbs hold(38 Bbl ttl) 18:28 5104 753 0 10.6 Stage Flush(19 Bbl ttl) 18:30 3040 678 19.7 0 Shut down 18:48 2970 582 19.7 0 Shut in well 18.52 Wash up and Rig down safety meeting Treating Pressure Injection Rates Shut In Pressures Customer Rep. Tim Mckeirnan Minimum 5200 Treating Fluid 12 !SDP 0 BJ Rep. REUBEN D JUNKERT Maximum 6470 Flush 12 5 Min. 2995 Job Number 1001938340 Average 6100 Average 12 10 Min. 2987 Rec.ID No. Operators Max.Pressure 15 Min. 2976 Distribution 6500 Final 3040 In Min. 203 Flush Dens.lb./gal. 8.48 Report Printed on:September 30,2012 7:55 PM Jr8001 • • BJ Services JobMaster Program Version 3.50 . Job Number: 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 DFIT 50 9500— 1 – 8000 4020 en rn co – 0 z b C R 30 CC H _ – m '4000 { —10 0 20 Q – n- - Cl) a K 0. - = - - ii – -_---- m rn 2000 10 0 0 - 1 [ _ _. _11_ o 50 100 140 Elapsed Time(min) BJ Services Job Start: Sunday,September 30,2012 • • BJ Services JobMaster Program Version 3.50 L Job Number: 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 Main Job 9500 I t h —9500 —\ 8000 8000 Fir 20 6470 psi k.- _ 5200 psi _ u) 20q 6000 Ja. Q. i J r'"/- — O 6000 TON 7 - a E 4 f p N a .0 1 N 12bpm = H ;: m 2 I— :=.0 co I 3040 psi ISIPCC m 7 4000 1 10.5 bpm i _10 ¢ 4000 V �', d u) I \ a N 10— v – c 6#Hold CO IL, 4 ",yl , ri 2000— _ 1-6#Ramp '�l Y 12000 r w 1#Hold X.`.- 0— 0 Y Iii i 111 0 0 160 180 200 215 Elapsed Time(min) BJ Services Job Start: Sunday,September 30,2012 s • ViBJ Services JobMaster Program Version 3.50 Job Number: 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 Chemicals 15 3r 1 n ; jl I I I 1 i I i I 3 5 1 — — 4 I " 10 2 2 Q a 1 - B. m E _ — 1 in 3c.) d N — Q aI I v — •, rn _1 i 0 - 1 1 in m 2 9 c — 4 L I'mvt",y,,,C" v nw+nn, `'"'' '040,040#41401141,11I,Wd, 110 II I i i ,illi 1 111 i — 1 41. ' ^ I J^ VrkqP ' yt� i. �' _ IJ I I 0 0 I 1 i I I I I 1 0 0 140 160 180 200 215 Elapsed Time(min) BJ Services Job Start: Sunday,September 30,2012 • BJ Services JobMaster Program Version 3.50 LJob Number: 1001938340 Customer: Cook Inlet Energy eiWell Name: Otter Creek Otter#1 Nolte Plot 20000 40 10000 — V — 30 15 1000 — — 0 Q _ n ao w Q 20 10 d 100_ c a� — co z _ — — z 10 10- 9J j h r rte+ I M1 1 0 Elapsed Time(min) BJ Services Job Start: Sunday,September 30,2012 i r / BJ Services JobMaster Program Version 3.50 Job N/I ei umber: 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 MD=4710 ft, Slurry/Sand are bbl/lbm - 0 Design Actual Stage 687.0 717.0 Slurry 50050 52888 Sand 20.0 I 2.1 01. Pressure Testing - 1000 20.0 = 28.6 02. DFIT 20.0 I 5.4 03. Cross Over 131.0 131.1 04. Pad 150.0 153.2 05. 1# 289.0 285.4 06. 1# - 6# Ramp - 2000 38.0 90.6 07. 6# 20.6 08. Flush - 3000 - 4000 BJ Services Job Start: Sunday.September 30,2012 BAKER HUGHES Proposal No: 1001154718B COOK INLET ENERGY LLC OTTER#1 API # 50-283-20163-0000 WILDCAT Field 12-14N-10W Tyonek County, Alaska October 1st, 2012 Quality Control Prepared for: Prepared by: David Hall Joshua Herald CEO Technical Support Engineer Cook Inlet Energy Bus Phone: 907-334-6745 Email: david.hall@cookinlet.net Mobile: 907-317-8239 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Fax: 907-776-4087 Bus Phone: 907-267-3487 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • • CUSTOMER Cook Inlet Energy DATE:Sept.30,2012 SAMPLED:Joshua Herald WELL NAME:Otter Creek#1 FIELD REC#:1001938340 COUNTY:Beluga SYSTEM:Lightning 2000 DATE SAMPLED:Sept 30th.2r' WORKED BY:Joshua Herald BAKER Well Site Quality Control: HUGHES Tank/Transport#: II I I ('. I 7 1 8 T 9 I 10 I • 1 Water Qualit Clarity,Color,Odor Sample Temperature F Specific Gravity 1.016 Initial pH 7.34 Iron(Fe2+&Fe3+)(mg/L) 0.00 Chlorides(mg/I) Calcium(mg/L) • • Sulfate(mg/L) Hardness(mg/L) Phosphate(mg/L) Reducing agent Bacteria Date Biocide Added August 30th,Sept 3.5.7.8th Base Gel Qualit : Name of Product System Mixed: ,n,ning Gellant loading(lbs/1000 gal) 20 Sampling Time: 8/18/2012 Sample Temperature F min. 6 Fann Reading 5 min. 10 @ 300 RPM 10 min. 2 min. Buffered pH X-Link Vortex Closure,min:sec 2.0 X-Link Crown,min:sec 18.0 X-Link.H Frac Fluid Qualit Stage Viscosity pH XL Time @ blender Temperature F Wawa ADDITIVE LOADING ADDITIVE LOADING ADDITIVE LOADING ADDITIVE LOADING Remarks: Funnel: Crown: Lip: Signature: • ' Bucket Test Sept 29th,2012 Additive BF-7L Claymaster BC-3 FloBack XLW-32 Spare Enzyme BL Spare Blender _ Pump/MicroMotion 2 4 6 10 1 7 31 " " Test Gpm 1 0.5 0.25 _ 0.5 _ 0.5 1 1 1 _ 50 bbls Expected time for,min:sec 01:00.0 01:00.0 02:00.0 01:00.0 01:00.0 01:00.0 , 01:00.0 01:00.0 50 bbls Actul time for,min:sec 00:59.5 00:59.4 02:01.0 00:59.8 00:59.2 01:00.7 01:00.9 01:00.9 %Deviance 0.87% 1.00% -0.81% 0.42% 1.28% -1.25% -1.50% -1.50% 0.00% • • BREAKER TEST REPORT DATE:Sept.30,2012 FIELD REC#, 1001038340 CUSTOMER:ConocoPhillips WELL NAME:Otter Creek 81 SYSTEM:Lightning 2000 ADDITIVE LOADING.1 ADDITIVE LOADING ADDITIVE LOADING ADDITIVE LOADING ADDITIVE LOADING Claymaster-5C 0.5 gpt Floback 40 0.5 gpt Breaker Test 81 gpt Breaker Test 42 gpt Breaker Test#.3 gpt Breaker Test 8.4 gpt Breaker Test#5 gpt Gellant Loading: GLFC 5.00 Gellant Loading. GLFC 5.00 Gellant Loading: GLFC 5.00 Gellant Loading. GLFC 5.00 Gellant Loading. Buffer Loading. BF-8L 1.40 Buffer Loading E.,-EL 1.40 Buffer Loading. BF-8L 1.60 Buffer Loading: BF-8L 1.60 Buffer Loading: Crossllnker Loading: XLW-32 0.70 Crosslinker Loading. XL!':-32 0.70 Crosslinker Loading: XLW-32 0.70 Crossllnker Loading: XLW-32 0.70 Crosslinker Loading: Breaker Loading: BC-3 0.40 Breaker Loading: BC-3 0 50 Breaker Loading' BC-3 0.40 Breaker Loading: BC-3 0.50 Breaker Loading. Breaker Loading: Enzyme G 1,00 Breaker Loading: Enzyme C Bleaker Loading: Enzyme G 1.00 Breaker Loading: Enzyme G 1.00 Breaker Loading. Breaker Loading: CRB-LT 2ppt Breaker Loading: CRB-LT Breaker Loading: CRB-LT 2ppt Breaker Loading' CRB-LT 2ppt Breaker Loading: Other Loading: Other Loading: Other Loading: Other Loading: Other Loading: Visc. 12 Vise. 12 Visc. Vise. Visc. Clos. 14 Clos. 12 Clos. Clos. Clos. Cro. 17 Gro. 18Oro Gro. Cro. Xllnked.ph 99 Broken:ph Stoked'.ph 0B Broken:ph Xliked:ph Broken ph Xllnked:ph Broken.ph XI'mked:ph Broken:ph Time,Min Bob Size Reading Temp.F Tkne.Min Bob Size Reading Temp.F Time.Min Bob Size Reading Temp.F Time.Min Bob Size Reading Temp,F Time.Min Bob Size Reading Ternp.F ! - 0 t B2 60 75 100 5 - B2 6" rot, 10 EL 52 120 10 65 Ito 10 B2 61 110 _ 15 = 47 120 15 B2 65 120 15 B2 66 110 ' 20 45 '20 20 __ 64 120 20 82 81 110 25 46 '- 120 25 81 120 25 B2 56 110 04. EL 30 E= 44 120 30 60 120 30 82 54 110 30 B2 35 37 _. 52' 60 120 35 B2 50 110 35 B2 40 B2 34 120 40 6.. 58 120 40 B2 49 110 40 B2 45 B2 27 120 45 BO 38 120 45 B2 44 110 45 B2 50 22 120 50 B2 38 120 50 B2 41 110 50 B2 55 16 120 55 B2 27 120 55 B2 38 110 55 B2 60 1- 120 80 B2 22 120 60 B2 0 110 60 BC 85 120 85 42 18 120 65 F F 110 65 B2 70 120 70 B2 2 120 70 110 70 B2 75 120 75 120 75 110 75 80 '20 80 120 100 Remarks: • l kT' TEST 2 TEST 3 Breaker Test k4 . TEST 5 80 7- 70 \ 60 —7' _ ___.____—__—--__ ......_.-_....__. j 6 40 J 20 1 x _ 10 o a .. 10 I 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 50 Time,Minutes ' Signature:Joshua Herald 0 • STAGE #1 DISTRICT : Kenai DATE OF JOB : September 30, 2012 CUSTOMER : Cook Inlet Energy WELL NAME : Otter Creek#1 BRANCH BULK PLANT FIELD RECEIPT NO. 1001938340 QUANTITY VERIFIED PRODUCT Lot HOSES Hoses NET Micro- TO FIELD DESCRIPTION NO. UOM LOADED RETURNED USAGE Motion Variance RECEIPT ENZ-G gal 34.0 0 34.0 34.0 0.0% BC-3 gal 105.0 93 12.0 12.6 -4.8% FLO -40 gal 93.0 65 28.0 26.2 6.9% CLAY-5C gal 118.0 95 23.0 24.4 -5.7% XLW-32 gal 198.0 178 20.0 18.4 8.7% BF-8L gal 194.0 158 36.0 38.7 -7.0% GLFC 5-D gal 395.0 302 93.0 89.0 4.5% HP CRB LT lbs 70.0 0 70.0 68.9 1.6% X-cide 12 0 12.0 COMMENTS: ISSUED BY RECEIVED TO LOCATION DATE DATE RETURNS VERIFIED BY APPROVAL DATE CUSTOMER SIGNATURE • • FAIN CONDITIONS BAKER HUGHES The services and products will be provided under the attached Baker Hughes Incorporated Worldwide Terms and Conditions. By requesting that Baker Hughes provide the services and products described herein, Customer accepts all of the terms and conditions of this proposal, including the attached Baker Hughes Incorporated Worldwide Terms and Conditions. In the event that Customer and Baker Hughes have executed a Master Services Agreement covering the services and products to be provided, such Master Services Agreement shall govern in place of the Baker Hughes Worldwide Terms and Conditions. Report Printed on: SEP-28-1211:25 Gr4175 • • _ Operator: COOK INLET ENERGY LLC ��•• Well Name: OTTER#1 BAKER Date: August 13, 2012 HUGHES Proposal No: 1001154718B PRODUCT DESCRIPTIONS BC-3 BC-3 is a clear, colorless liquid that is designed to assist the degradation of alkaline pH fracturing fluids. Usage can be from 70 deg F to 300 deg F (21 deg C- 149 deg C)when proper testing is performed. It can be used with enzyme breakers to lower pH of the system and allow the enzymes to work more effectively without damaging the enzymes. BF-7L A liquid pH control agent used to adjust fracturing gels into the pH range of 8.5 to 10.5. This product was designed to retain its buffering capacity at high temperatures. CARBOLITE, 20/40 A man-made, low density, medium strength ceramic proppant. It has a density only slightly higher than sand while providing improved conductivity. It is used in medium closure pressure situations. Registered Trademark of Carbo Ceramics. Clay Master-5C A concentrated low molecular weight polyamine used in water, brine or acids to protect the formation against damage due to clay swelling, sloughing and migration. Enzyme G-I A patented, polymer specific enzyme breaker custom formulated to degrade polymer into non-damaging components. GLFC-5D A high yield guar gum gelling agent slurried in an environmenatlly friendly carrier. Used to prepare hydraulic fracturing fluid systems. High Perm CRB-LT A controlled release breaker(C.R.B.)for use in water-base fracturing fluids. Controlled release coating allows proppant transport and then after pumping it degrades the base polymer for crosslinked and linear gel systems. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. XLW-32 A liquid Borate crosslinker(Boric Acid)used in gel systems. Rep ette I te: R ter25 C 22t 1,1 (341f". Have more questions?You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping I • Operator Name: COOK INLET ENERGY LLC MI Well Name: OTTER#1 BAKER Date: August 13, 2012 HUGHES Proposal No: 1001154718B End of Report Report Printed en:September 28,2012 C-'ott • I ///7,/ s?, THE STATE Alaska Oil and as 4 ALASKA AL Conservation Commission GOVERNOR SEAN PARNELL 333 West Seventh Avenue pi, Q. Anchorage, Alaska 99501-3572 ALASY' Main: 907.279.1433 Fax: 907.276.7542 David Hall CEO Cook Inlet Energy 601 W 5th Ave., Suite 310 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Otter#1 Sundry Number: 312-483 Dear Mr. Hall: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P oer ter Chair I St- DATED this -DI day of January,2013. Encl. • • ce2','�RECEIVED STATE OF ALASKA \'3 DEC 17 2012 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 ❑ Suspend Q 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 Exploratory M. Development ❑ 212-028 a 3.Address: El6.API Number: El Service 601 W 5th Ave.,Suite 310,Anchorage,AK 99501 50-283-20163-00 ' 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in thi: Will planned perforations require a spacing exception? Yes ❑ No ❑., . OTTER#1 - 9.Property Designation(Lease Number): 10.Field/Pool(s): 390579 • EXPLORATORY ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 5686' • 5614' 5480' 5447' 5480' 5447' Casing Length Size MD TVD Burst Collapse Structural Conductor 10 3/4"L80 157' 157' Surface 7"J55 2096' 2095' 4360 3270 Intermediate 4 1/2"L80 5637' 5604' 7780 6350 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): , 3706'-5279' 3695-5151' 2 3/8"4.7# J55 4680' Packers and SSSV Type: 1 permanent,2x retrievable Packers and SSSV MD(ft)and TVD(ft): NO SSSV NO SSSV 3555'MD/3546'TVD,4104'MD/4088'TVD, 12.Attachments: Description Summary of Proposal ❑ 13.Well Class after proposed work: Detailed Operations Program Q BOP Sketch ❑ Exploratory ❑✓ - Stratigraphic❑ Development p ❑ Service ❑ 14. Estimated Date for 7-Dec-12 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑l v 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR El SPLUG El 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Courtney Rust 907-433-3809 Email courtnev.rust( cookinlet.net Printed Name David Hall,CEO Title l a//�/�,L,( Signature / Phone Date ,!, COMMISSION USE ONLY Conditiofis of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity Ul BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: RBDMS FEB 012013 r Spacing Exception Required? Yes ❑ No El Subsequent Form Required: 6 - 1 U APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: I -3l— / 3 O Rfle- 143 At. Submit Form and( e Approved application is valid for 12 months from the date of approval. Attachments in Duplicate ���Z1' /•2-7/3 I274//2.._ v'1\ Page 1 of 2 . • Schwartz, Guy L (DOA) From: Courtney Rust[courtney.rust@cookinlet.net] Sent: Thursday, January 31, 2013 5:58 AM To: Schwartz, Guy L (DOA) Subject: RE: Otter#1 suspension. PTD 212-028 Attachments: Current Otter Completion 1-31-13.ppt Guy, A PX plug was set at 3502' in the Otter well on January 17, 2013 and pressure tested as required. Here is an updated diagram. Courtney From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, December 27, 2012 8:18 AM To: courtney.rust@cookinlet.net Subject: RE: Otter #1 suspension. PTD 212-028 Courtney, Thanks for the additional information. Can you provide me with an updated schematic showing where the isolating plugs will be located (see#1 below) . Once I have that I will approve the sundry and pass on to the Commissioners. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Courtney Rust [inailto:courtney.rust@cookinlet.net] Sent: Thursday, December 27, 2012 7:59 AM To: Schwartz, Guy L (DOA) Subject: RE: Otter #1 suspension. PTD 212-028 Guy, To date the Otter well has no exhibited commercially producible quantities of gas.We are currently reviewing our options for coil tubing work, Nitrogen treatments, and evaluating the possibility of going deeper into the well. We are ceasing our operations for the winter while we discuss our options and will have a plan moving forward in the early spring. For the diesel,there was 2 bbls put on the backside and 1 bbl in the tubing. We will pressure test the plugs and document. From: Schwartz, Guy L (DOA) [ nailto:guy.schwartz@alaska.c]ov] Sent: Tuesday, December 18, 2012 1:58 PM To: courtney Rust Cc: Davies, Stephen F (DOA); Bettis, Patricia K (DOA) 1/31/2013 Page 2 of 2 • Subject: Otter #1 suspension. PTD 212-028 Courney, Please provide some more details on what the well long term plans are? 20AAC 25.110 (a) requires you to submit in writing the justification for suspending the well vs P &A. Also; 1. Your procedure will require another plug to be set in the tubing above the sliding sleeve. The PXN you proposed is below the top Sliding sleeve so cannot be counted as a mechanical barrier. You must also pressure test the plugs and document on chart for 30 min. 2. How much freeze protect are you using? .. the fluid below must be KWF. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 1/31/2013 • • Cook Inlet EnergyRECEIVEDRE IVED DEC 13 2012 AOGCC December 13, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Sundry Application for Well Shut in Cook Inlet Energy, LLC: Otter#1 Permit to Drill No: 212-028 Dear Ms. Foerster, Cook Inlet Energy (CIE)hereby submits a a sundry application to shut the Otter#1 well. Cook Inlet Energy shut in the well with a PXN plug in the XN nipple set at 3710', freeze protected the annulus and tubing with desiel, and bled the pressure off tubing and set a back pressure valve. The well will be shut in pending further evaluation. If you have any questions, please contact me at(907)-433-3804. Sincerely, j /tJ David Hall CEO—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax II • • Cook Inlet Energy_ Otter #1 — Completion Diagram ,fir\i� vC�.• Conductor: ?` ,� . 10 3/4", 45.5#, L-80, BTC (ID = 9.95") �t1 \; :n 2-3/8", 4.7#, J55, EUE �r`. `.; , Tubing (Coupling OD = Set @157' MD/TVD ` 1 `'"`' ( p g 3.063") '1 m1,s. 4 A,••• 'Ib �♦J,Y h VZ 4*.+Ar %>��=. Chemical injection mandrel with '/4' '44:1 \:'.••• control lines @ 2599' MD/ND .ivr✓. . i\i✓`J\ `1 J. N. Surface: 8 1/2" Hole ;;;;.- ::1 „ 7 ", 23#, J-55, LTC (ID =6.151") f c : : .�\.,;'i \1.•• PX Plug @ 3502' MD Set@ 2092' MD/TVD $ : \��k\. Al ac :�\: : �1 `� Sliding Sleeve @3520' MD/TVD •Perforation Intervals: ;�� Retrievable Packer @3555' MD/TVD Zone: 1 =258' 3706'-3714'= 8' 1 0 Z Sliding Sleeve @3687' MD/TVD 3800'-3804'=4' ...e, :� 22' 3852'-3854'= 2' v >`3 3916'-3920'=4' A` .4 3960'-3964'= 4' Retrievable Packer @ 4104' MD/TVD A . Zone: 2=252' 0 Sliding Sleeve @4205' MD/ND 4240'-4248'= 8' `s 18' 4270'-4274'=4' :�. 4 4403'-4406'= 3' :` 4489'-4492'= 3' •....0!` '• Permanent Packer @ 4551' MD/TVD Zone: 3=569' ,�J 4710'-4725'= 15' :��:,��\i \� �. '� XN nipple @ 4648' MD/TVD 4770'-4773'= 3' .::az 1 4986'-4994'= 8' ; Mule Shoe @ 4679' MD/TVD 5014'-5018'=4' v 5094'-5144'= 50' 127' J 5108'-5118'= 10' -..,,,t ,„;•...a Production: 6 1/8" Hole 5140'-5150'=10' 4 1/2", 11.6#, WT-80, LTC (Drift ID =3.875") 5166'-5173'= 7' 5198'-5208'= 10' TD: @ 5686' MD/TVD 5269'-5279'= 10' ! . • 0 Cook Inlt Enery Otter #1 Completion Diagram Q \ R iX 4 / Conductor: i.$ #. 1O 3/4", 4&5, L-80, BTC = 995" 4iA •-•W, 2-3/8", ¢7, 75% EUE (ID ) *R %e Tubing (Coup ng OD = 3.063") Set @157' MD/TVD :2,0.4 / 4 V 6 , . . \1 4 „,s$„,... < . j� � X Chemical injecbon mandrel with S' ' control lines @ 2599' MD/TVD . h it q * ”Al ...1 P. sz)oe " Surface: 81/2 Hole * + 7 ", 23#, J-55, LTC (ID = 6.151") k Smg209' MD/TVD . Perforationh@&@s Q Nr Sliding Sleeve @3520' MDZTVD • Zone 1 = 258' P"® Retrievable Packer @3555' MD/TVD 3706'-3714'= 8' $73�GJ3\ }Slding &ev @3687' MD/TVD $783770 = 4;1:4 j : 26' 3800'-3804'= 4' \ c PXN Plug @ 3710' 35'385'= 2' 2 3916'-3920'=4' \ 38/394'= 4' « $ ' 4. RmHeablePakr@410' MDZTVD Zone: 2= 252' 0 , 440'-428'= 8' 40 . , Sliding Sleeve @4205' MD/TVD 18' 4270'*27'=4 » . 4403'-440'_ 3' Ar. , 4 4489' 449 ƒ 0.oit y : \ y Zone: 3= 569' $ 4710'-4725'= 15' Permanent Packer @ 4551' MD/TVD • 477/-773= 3 � / 498 - 9 ' 9 '= 8' 5014±O]/- » j XN nipple @ 4648' MDZTVD ]]/ 5094'-5144'= 50' Mule Shoe @ 4679' MD TVD 510E-5118'= RePerf , + 140'-5150'=RePerf+ 6' Production: 81a" Hole 5166'-5173'= 7' 5198-5208' 10 412% 11.6, WTa$ LTC (DriID =3.875\ 5269'-5279'= 10' ' TD: @568' MDZTVD Cook Inlet Energy RECEIVED NOV 19 2012 November 19, 2012 AOGCC Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Otter#1 Sundry Completion Q Cook Inlet Energy, LLC: Otter#1 Sundry No: 312-350 Dear Ms. Foerster, Enclosed please find the Report of Sundry Well Operations and Data required by the AOGCC's approval of Sundry Number : 312-350 Enclosed please find: 1. Sundry Completion report(AOGCC form 10-404)with attachments 2. Summary of Daily Drilling/Workover Operations 3. Frac Data 4. Completion Schematic If you have any questions,please contact me at(907)-433-3804. Sincerely, /J David Hall CEO—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax IfP STATE OF ALASKA r ALA OIL AND GAS CONSERVATION COMARION NO" 19 201? REPORT OF SUNDRY WELL OPERATIONS A nCC 1.Operations Abandon ❑ Repair Well ❑ Plug Perforations LJ Perforate H Other ❑ Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac 2 Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended Well❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: COOK INLET ENERGY,LLC Development ❑ Exploratory 2 212-028 - 3.Address: 601 W 5TH AVE ANCHORAGE ALASKA Stratigraphic❑ Service ❑ 6.API Number: 99501 50-283-20163-00 ® j 7.Property Designation(Lease Number):390579 , 8.Well Name and NumbE OTTER#1 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): -- EXPLORATORY 11.Present Well Condition Summary: Total Depth measured 5686' feet Plugs measured 5480' feet true vertical 5614' feet Junk measured 5447' feet Effective Depth measured 5480' feet Packer measured See Attached feet true vertical 5447' feet true vertical feet Casing Length Size MD TVD Burst Collapse Structural Conductor 10 3/4" L80 45.5# 157' 157' N/A N/A Surface 7"L80 23# 2096' 2095' 4360 PSI 3,270 PSI Intermediate N/A N/A N/A Production 4 1/2"WT-80 11.6# 5637' 5604' 7780 PSI 6,350 PSI Liner Perforation depth Measured depth SEE ATTACHE feet True Vertical depth SEE ATTACHE feet Tubing(size,grade,measured and true vertical depth) 2 3/8"4.7# J55 4680 4658' Packers and SSSV(type,measured and true vertical depth) SEE ATTACHED 12.Stimulation or cement squeeze summary: Intervals treated(measured): 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: Subsequent to operation: 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run Exploratory❑, --, Development❑ Service ❑ Stratigraphic ❑ Daily Report of Well Operations 16.Well Status after work: Oil ❑ Gas 0 WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ❑ SUSP❑ 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: 3 (2 -350 vi.-f- t)3/13 Contact Courtney Rust 907-433-3809 Email:courtney.rust@cookinlet.net Printed Name David Hall -- 7 Signature Title:CEO ' -`-✓ ,��- c,/ _ �..,._ Phone:907-433-3804 Date 11/19/2012 Fc. :" -404 Revised 10/2012 4S NOV 2 1 of ir✓ 7 �_Z3 Submit Original Only S • Current Wellbore and Completion Schematic Cook inlet EnergyOttC{ Completion #1 Diagram 11-19-12 •%/ ; Conductor. k . ;2 2-3/8",4.7#,J55, EUE 10&«,�.5#,wm,e C(ID=9.95 ) $ •. ' !,. Set @157'MDTD : / �eq(Cp�ngOD=3.063") )$ / ®t $ • 4» w¥ $t 4¥ ) . k Chemical injection mmdGh§"/¥ , ,f4, control MD/TVD ¥ ¥ // Surface: 81�2 le % • 7\2%&5, L C(D=E]@ 9 4 St 292M»TO f¥ r. 4\ 0 tom' Sliding Sleeve©3520'MD/T D Perforation in R§& • ƒ • : Retrievable P 5"E 2»7'MD/T D Zone:1 =258' t 3051-32¢=8' t Sliding&mve@3687MD/TD 3800-3+¢=4 ¥ 3852-3+4=2' $22' $ 3916'-3920'=4' & k 3960'-3964'=4' ' *,. Retrievable 5"«a eP Packer @ 4104'MD/T D Sliding0 Sleeve @4205' TVD D Zonek ¥ 4240'-4248'=8' k k 1E 4270'-4274'=4 } $ 4403'-4406'=3' ¥ 4489'-4492'=3' k k $ PermanentPa Packer @4 51' MD/TVD Zone 1-a93Z0/2 v• ¥ Zone:3=569' $ < 4710'-4725'=15' % 4770'-4773'=z ¥ XN nipple @ 4648' MD/7 D mom§&m�/E k « Mule Shoe @ 4679' MD/TVD 5014'-5018'=4' k % 727 5094'-5144'=50 $ r 5108'-5118'=4E ƒ Production: Hole @40-3406\4& 412 , 9.6# &Sm,�C (Drift ID=3.875") 5166'-5173'=T TD:@ 5686' MD/�D 5198'-5208'=4E 5 69-5279=4E 3IPage • • Otter #1 Frac Summary Reports 9/27/12 Prep For Frac Work 9/28/12 Prep For Frac Work 9/29/12 Prep For Frac Work, spot frac pump and equipment,rig up hard lines, load sad,heat water in frac tanks. 9/30/12 Monitor Wellhead Pressure: Zero. Tubing static,no flow or pressure. Finish loading sand. Mix 950 bbls @3%KCL Brine, PT lines to 7500, set pop off to 6500. 28.6 bbl DFIT, Frac well, then flush. J(�ji 7 10/1/12 Monitor Wellhead Pressure: Zero. Tubing static,no flow or pressure. Equalize pressure on stinger 1800 PSI on well. Rig down stinger and frac equipment. Load out frac equipment. Rig up test skid. Flow well,pressure bled off Close in build to 1500 psi. Open up flow well 8.5 bbl. Back at 2400. 10/2/12 Monitor Wellhead Pressure: Zero. Tubing static,no flow or pressure. Flow well, 25 bbls fluid back. Total fluid back 34 bbls. Transfer fluid from flow back tank to rain for rent tank. 10/3/12 Monitor Wellhead Pressure: Zero. Monitor well and gen set. Flow well, R/U pollard wireline. Swab well 33bbls. 10/4/12 Monitor well head pressure=zero. Swab and monitor well and gen set, R/U Polalyd wireline, 16.4 bbls back. Swab well 33 bbls. 10/5/12 Monitor Wellhead Pressure: Zero. Swab and monitor well and gen set,R/U pollard wireline, 19 bbls back f/well. 10/6/12 Monitor Wellhead Pressure: Zero. Drop 2 soap sticks. Swab and monitor well and gen set, R/U pollard wireline. 14 bbls back from well. Fuel gen set and pollards, add oil to gen. 41Page • • 10/7/12 Monitor Wellhead Pressure: Zero. Swab and monitor well and gen set, R/U pollard wireline. 7 bbls back from well. Fuel gen set 40 gal. 10/8/12 Monitor Wellhead Pressure: Zero. Monitor generator, fuel gen set 44 gal, transfer 300 gal to rig fuel tank. 10/9/12 Monitor Wellhead Pressure: Zero. Monitor generator, fuel gen set 47 gal. Drain berms and preform maintenance around pad. 10/10/12 Monitor Wellhead Pressure: Zero. Monitor generator, fuel gen set 57 gal. Change oil in camp generator, load frac sand, tote, and filter press on trailer. 10/11/12 Monitor Wellhead Pressure: 275 PSI. Monitor generator, fuel gen set 46 gal 10/12/12 Monitor Wellhead Pressure: 295PSI. Monitor generator, fuel gen set 47 gal 10/13/12 Monitor Wellhead Pressure: 300 PSI. Monitor generator, fuel gen set 67 gal. Load out stinger equipment and fuel rig truck. 10/14/12 Monitor Wellhead Pressure: 300PSI. Monitor generator, fuel gen set 69 gal. Continue loading equipment. 10/15/12 Monitor Wellhead Pressure: 300PSI. Monitor generator, fuel gen set 114 gal. Continue loading equipment. Bleed off pressure from well. 10/16/12 Monitor Wellhead Pressure. Monitor generator, fuel gen set 42 gal. Transfer fluid from rain from rent tanks to isos. Rig up pollards for swabbing. Open well to greer tank and monitor. 10/17/12 Swab well with pollard 30bbls back, Fuel rig generator and truck 74ga1, suck out pits, cuttings box, rod wash water, Pull drain plugs on trip tank and water pump,poorboy, mud pumps. 10/18/12-11/18/2012 Monitor well for pressure and flow I ' • • Frac Data Lip AO fftwarer pnsassa* ausiom•r: Co*inionawrio worto Mow °Mar Crop*OW 4+ C I it'Mi tail; 71 71 I 1 ' 1 " 1 1 1 ; iv or Ei , .• , . -.•‘4,....040.4,4,,.....,, r,.......• ....„.% I* 1 ci 131N10404 TOW 1 1 kl 4444044 444 DWI liandate 5441404 to 10 14,11:: Wage • • BJ Services JobMaster Program Version ISO LJob Number. 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 DFIT 50 I 40 i r ii l EL I a a D m c Q M 30 `x n n a a e a ra; $ m A Y ti m 1 400t <) a 20 4 a a v =y C m a I 10 ai 20CC i 0 ,A I — i — —L 1 0 50 100 140 Elapsed Time(min) BJ Services Job Start Sunday,September 30,2012 71Page • • LII .aBJ Services JobMaster Program Version 3.50 Job Number: 1001938340 Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 Nolte Plot 20000 — 40 —_ r 1000t I 30 AA WS. S. E. S W .Q 20' K 1 100- • c a_ COy m 2 = En . ...,., 11 10 ri fr1 TI Elapsed Tine(min) 81Page • • r 1 BJ Services JobMaster Program Version 3.50 IC iii Job Number: 100e40Energy Customer: Cook Inlet Energy Well Name: Otter Creek Otter#1 Main Job 9500 9500-- 30 _. 1�, \ _ 8000 8000 29 6470 psi 5200 psi 1 m a _.. Y0.-- I r ( I 2 -._6000 In' I , re N r.....i .. _. C a C 1:11 C .. 3040 pd S P , .� m • --S. � w 4000 CO 4000- 10.5 bpm r...-......r- _ -_ 1 U a U or 1r sn a. j 1,1 6*Hold C m r' l t-q►Ranw iir aY"y r4,4tu,.',�,�;�`4, 4 2000 4. 4 t 1#Hold ,� • 0- ' r 180160 "- 200 215 Elapsed Time(min) _- Job Start: Sunday,September 30,2012 BJ Services 9 I P a ,T (` • rAITIE GIF [ILSE:1'x\ SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 David Hall CEO a- � Cook Inlet Energy, LLC C7"�cc�� f 601 West 5th Ave, Suite 310 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Otter #1 Sundry Number: 312-350 Dear Mr. Hall: 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, Q.67Cathy PFoerster Chair, Commissioner DATED this 12th day of September, 2012. Encl. • • Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, September 05, 2012 12:29 PM To: 'courtney.rust@cookinlet.net' Subject: RE: Rough Frac Sundry Otter#1 Courtney, Reviewed sundry... Need: al " O 1:8' 1) CBL log on 4.5" casing . 2) cementing details from vendor. The daily report is missing some key items. Returns during job is not mentioned ..or cement to surface. 3) Cover letter should be more detailed on what you are proposing ... which zone are you fracing?? Also summarize the well construction and why you think the frac will be isolated to the target formation. Any info on confining zones? 4) Procedure needs to spell out testing of the IA and tubing before you frac.... You must prove the Sliding sleeves are closed and holding. are you monitoring the IA pressure during the frac? I would include the well sketch provided in the 407 too. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Courtney Rust [mailto:courtney.rust@cookinlet.net] Sent: Wednesday, September 05, 2012 11:22 AM To: Schwartz, Guy L (DOA) Subject: Rough Frac Sundry Otter #1 Guy, This is the bones of it. I will work on assembling this nicely for you and get signatures on the forms. I'm also submitting a sundry for a RU#3 workover today and that one will take a priority I just know that it is possible and probable though it doesn't feel like it that I will be having a child imminently... maybe. Courtney 9/12/2012 l a} , 1 I11111111C I- it e t i .* ♦ :1 11 . _ { - , ___-- -- _ illy1- 4/ sx I ; .. 'n.. I 1 /.S 1{Sal§eg Cyt I I 1 (/J, r 1 , 1 • _ I I int _- r 4 is Y ;y , , _ i I __. .. --_T_ w ,, :. ,� I 1 J ff � a4F, !8' PIU* M1 ili.1.47 — ap[Jp @YtseA33 _. _. 1 ', � -__.. - _ _.. 35$1&1fe,ti 1 1 1 4600 /4 1:%kli , k E I— a --.—I : fin �. • sal# . . ., d I ig -4l4 . r. !�,' 1 I ter, • } \\ t ra t. 1 sly tE I , , 1 __ —.I - , -- ;r K ' 1 ' It I n 1� .:I\\ V. , .F ,H i — oa . 1 t • 1 T ' • `. , N i ` I I , 1 I I �: 4700 I ,`. w. ♦ i ws m t{ .. ._at!.'° ?RFS ., f t 1 /11-31, . . If, f I .jII! 1YWI P. ■ r _. Fa 1 1 i I - ' s )1i-t. I ,' \ Ii. S 1 ' 1 I ti ' 1sii < Vic. x 1 — " , 41g I mlix—L -�— - - j - I )1: , m . ' ,. .Q.� 1—4 4800 , r '_ ,�.._ - a I ace un . 4 : ,1d ,# _T_ i I ! QUI{. ( , t ill xs s v kI ,t----,,,,,4,,,,k4 11 ::::::::';',;::ii E t � i ce •_ gra' —._. . tT_.. - a it.-.'4"r--17•_:-1::1, *,:til'. I1 1 t 1111:lifft1P:i k't`‘''''''(‘N '11 ! I 4 Vit-1,2,-.rg.v4TFV1',..,,., ) 14,41.....;_:-,t•-t,i. '1 il 9F..*Mfi --x I %('''' ,-7..1 z Tj if.: :,-"ili 14,... 1 ' � 77-1 '''''1+444't I i I , 1 9kaA gE , {1,,,{11: , , i „ , No- i , , , ,, s. , ., 11111111 ,,,,,,,,m.,2,,,,,,,,,,,,,,, b `, . liS'lliti.-!!!!:_ik‘vq 1 '1 .I i#:t9 E$R Cy- i. ' , _ ,, nea F � 1 ; . f■ 4900 I1 � / r ir“ IM I II ' f AI I �. .� J1 ((,( ( J 4- 1-� — ,' �I 111 l ' I■ j , II, #f q I t iiiti t itax01. I ' I ti.r't-ity( 1 - 1 1 Ott , it a . r. Ar ■ ' 1a ; taaaev .a I 5I, / t. k . ,, / , , ,s, 1 1 1 , , , ■ i ass € ;w 1 I I initi t.€142 1 g, 1 1 rt I 32 £ 88 i 5000 , � �, } ,4 r n�� t ( I — ;,' a � � s�wa4 ■ �$. Ili \I, I I I , I I , 4 Iso. 1 I r b I � 2 �� Tai /11.:VI:!,1:111, 1 i e II x t t I '{ :714::;:ilia.:4:1:::,1.2:r >> E1 1 r ' - 1.214iti'l*rg**(t.,...9 I , 1.11 1 t.a att aIa:1:1 daswr3MatV It 1441 ', T I 1 • J f } , ret 1I 11$5-us- Y F s SI t. ICht-4,4.Nt t°I , ma e .l a IE}4.46e&ri �� it enik �9m iaiIIIIIIIM - 7: it 11 I 1 5100 1 fit,...,.,..,,,,...,-7vvi 1 1 - _, I - «,. 1 ;I t 1 I 1 ....--- i i r ' ' o ,1 s ,, f, i't %VI I 'I ,I I 11 , .i t )11 ' ..,—. .— ) 1, i P , El S- • 1 ' G k 1 , 1,:;'...'-,:i -,t"---.4,-,1;5(.1f. ' 1 Cy Ea 1 1 1 C I -- 1 m 1111-1 I 1 5.114,1,11 -1.1 11?1 . 1 1 i‘I. I 1 Y , lit I ttAtt,R4I-44I#10.IOW— - 1"44fat*** 1 ,A S ., .1,,g# I , 6 @11 1, -5 -r 1 x.31 5 4 to 3 — 1 a t 11 t , lAill 'I al11 5200 1 11:::::::::' .. u M., I , I 0 11 , r lit 7_.---_,:::717.„, It , 1 1 µ— IF „...... _:., .,1" ? ' i I I x'11 111 i 1 ,, pi I , I li- t 1 I , 1 ' I 1 Ceit!--ftl4111,1I az-r- Ifi.1,-!:714. u I , :111.1=04's it 4 1 /fittitl**2”... I , 1 1 1 , , , . • c , ,N*.,/,*/*;" 1 /111 El a I I , , ot r— / 1 111 I ‘'l — il 5300 i —,- _ ti I li I / Ittall'1'- 1 - f/-10114111 / I I l i / 1 /1/15A-4/1 I ; ir-11 1:41 4111 1.11''1 11''1!il I 1 1'111I'.1 1114%1'1)1*i it/1'1, I 1 i 1 I ..1Z2 .N. )I1 J i I I ': troll,"!ft iii 1 . ., I-;*3:'7-----;:-4-1:1•i',,,t'.11,''''''''''''iv.'-31' ill I 1 I 3 I i I / / ‘1 l'''--N11.1'1'''''''' -fit r- 1) ti-111.111tH,:if I . r 0 r It I /1 ll I t ,...." I 1 ' 1) - 1 1 li 1 .. ll ll -/.E.. / I 11l 1"'111""11'' I 1 (11 , , , , E 1 1 - I 1 1 ch I 1 l'I I I 'I 1 ‘LEIL I I , I 1 1 il ii-N-1/4_,IN-1*,,Yk / 1,1 allt-taiiti.Nk.,.! ..., I ,1 t tfri :1:1:1:::11/1::;11-1-!1:.N8_11,,, -/$ 4.1:f I . • li itifilltf3..Fi'illr'lii'))- , 1 ., 1 I 1111‘ TI;111:Y/-2:,liN IN,. /.... ------ --..„ 1 ,, I I iii i :,, , _ , 1 III ,- ..., I ' I- / I 1\1 I I 1/ I I it ', ittnii-1,,,, ;q„,,ti. -1,1; ' ,,,f-1 er, , #.1-01/4/1 :41I.,_. .. 1111 1 *.-> 1t741LI 111/ 1 i I , I I I 1 5400 -- 1 31.4,f;I:k.:::,31,-732,i,1,( -f I .........,...„,,.. 1 I ...... I 1-- _---.- I 1 :1 r i itliffil Wel. ' 1 __--- ...„„.„.. .v.-1.1 is .c•-, , 1 ii 4 ,..,11,,,„. I !#::,1Nwilr4r 11 1 , -,--- I I 1 , , '! 1 ;;Tit•ct**4 tk ( ifiti,444.4441,„ .., , / 1 ' 4 L Kii-ifillift,'± I ; , 1 1 E , , 1 '115;1*1/1t /tt=1";11 3- t . 1 , I , j It \ _ " t7O iI' i • ■S 7 4 ,..... 1....„4=.; , : , , , ,..211.11*': .1 I j ''' r- - ' 1 I. I I 500 TT (usec) 100 LIEN 0 AMP3FT (mV)100 0 AMPAVG 100 200 VDL 1200 1 Radial Map 6 260 CCL 50 (Ib) AMP3FT x5 0 AMPMAX 100 10 60 0 GR (cps) 125 0 150010 (mV) 20 0 AMPMIN 100 Company Cook Inlet Energy Well Otter 1-12 412> IMG PRQ Field Pretty Creek WIRELINE INTERVENTION Rig Miller#34 Log Scale 1:200 410 • •Cook Inlet Energy_ September 11th, 2012 c Ms. Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Suite 100 SEP 1 1 2012 Anchorage,Alaska 99501 AOGCC ��++VC Re:Sundry Application for Hydraulic Fracture Cook Inlet Energy, LLC: Otter#1 Permit to Drill No: 212-028 Dear Ms. Foerster, I Cook Inlet Energy (CIE) hereby submits a sundry application for a hydraulic fracture (frac)to simulate the lowermost zone (Zone 3) of Otter#1 Well for flow testing. Log data indicates that the fracture will be bound vertically above the zone by the shale at 4677-4698 and below by the shale/siltstone at 5208-5232.The CBL run on August 25th indicated exce lent bonding across UT entire intery /'Ectal le)€d .41-'61.71 L0L/ If you have any questions, please contact me at (907)-433-3804. —42(_-11- �0 " awl �` Sincerely, z4z3 46.3 / l r,t>vz Q_ � Lora ��_iZ, r�� .--1-adiLe-e-e-,ce-4-- °'44,/ cl /6-(.77 ' ,, 504 3 4 5-2-70 0 5323 y33o/ Wil( // (-'-7 David Hall L� ,`r"� CEO—Cook Inlet Energy rr'• /(- iL— e `f•a-/Z 10-403 1 0 • RECEIVED STATE OF ALASKA SEP 1 1 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandon D Plug for Redrill❑ Perforate New Pool❑ Repair Well 0 Change Approved Program 0 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 ENERY,LLC Development ❑ Exploratory Q 212-028 • 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: 601 W.5TH AVE,SUITE 310 ANCHORAGE,AK 99501 50-283-20163-00 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: Spacing Exception Required? Yes ❑ No 0 OTTER#1 9.Property Designation(Lease Number): 10.Field/Pool(s): 390579 EXPLORATORY 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 5686' • 5614' - 5480' 5447' Casing Length Size MD TVD Burst Collapse Structural Conductor 10 3/4"L80 157' 157' Surface 7"J55 2096' 2095' 4360 3270 Intermediate 4 1/2"L80 5637' 5604' 7780 6350 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): 3706-5279' 3695'-5151' 2 3/8"4.7# J55 4679' Packers and SSSV Type: 1 permanent Arrowdrill @4551' Packers and SSSV MD(ft)and TVD(ft): AS-1X Retrievable @4104',HRP Retrievable at 3555' 3555'MD/3546'TVD,4104'MD/4088'TVD, 4551'MD/4481'TVD 12.Attachments: Description Summary of Proposal Q 13.Well Class after proposed work: Detailed Operations Program Q BOP Sketch Q Exploratory Q Development ❑ Service ❑ 14.Estimated Date for 9/12/2012 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas Q WDSPL 0 Suspended 0 16.Verbal Approval: Date: WINJ 0 GINJ 0 WAG 0 Abandoned 0 Commission Representative: GSTOR 0 SPLUG 0 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name JA,),. 3 t4A.� 6/.5:76:2 Title 1 II 1 I-Z Signature/4 A / J /j Phone Date �� c�/ X COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3/?.. 350 Plug Integrity 0 BOP Test 0 Mechanical Integrity Test ❑ Location Clearance 0 Other: Subsequent Form Required: /0 --Li 0 1-1 APPROVED BY e)1Approved by: 2_,V-t1/1.7 P � COMMISSIONER THE COMMISSIONDate: c)"- /2 _ /'?___, ORIGINAL ,��*e.. r ��, Form 10-403 Revised . •• MS SEP 12 2012 Submit in Duplicate Ve • • Table of Contents Location Schematic 3 Sundry Request 4 Otter#1 Frac Procedure 5 Current Completion Diagram 7 Tubing Talley 8 Wellhead Schematic 9 Fracturing Proposal 10 2 i 0 Location Schematic ~4------_-N Protracted $odiQn Line a, . 4 ...._..._. SEC12 14NMOW SAA AK g IS . INOTES 1.WO OF 1EAIIIDOIIUL AND i V TTKu CONTROL RPM rET!J E1 RYAN NOR OPUS AOLLI ICN FROM IXIPM ME INATTOTIR NEM PM JJ WSWTWAPIDAIIB�ANO'ANC2 a4 PID=UN MEWED D DU1lir12ON MCI CONTROL PONT 20 :NIP NADA! 2C1FE 4 EPOCH 2o01 0411.0111111146 N:21731 E7.124 C 14IP I7NN!LEMON 141L31 IIIMMCMMAMA DAMN 2}IEECTION LIE OFFEEri INTFAMINED FROM TIE PROTRACTED BEC11ON CORNEPI'PLU s6. it a}onfip toll mama„,,,iA LIED FOR DATUM OON4EI•ION. / ` '1 •. LAVAlkil I If Ail\ 415 \ \ \ 410 . \ tiy 94,X Illi \ ; a li IrIi. ia \ N tL I \%, \ ,a, OTTERS. 2�;` NE 327483.370 �'•. LAT: 8119'12175'N -e. LONG:150'58'54.912'W .- TIER NM 1 301 ELEV. 1ecar NA iD88 E:327439.010 LOM 15058.55.404-'W I � 0' NAD27 ELEV. UDBS 1 mew OTTER WELL PAD CONSTRUCTION umaTv1 PROMOTED/SEC.12 mowh• T1AIN,RICK SM,AK .._. OM"'E YICLANE CONSULTNG INC. FWD= aa~.R ME �' PROPOSED S2 Ieya +^'r aEMMINa,.T.. AS-$TNS SURFACE LOCATION DIAGRAM m ERPla MIN MOM , 11941110 IMP �E arnnNw COOK INLET EMMY ..T .m. PA.BDatAmSl4 GIB1il_lig ""a"'MEIME ANCNOIIAOE,AK MIEIOEI 3 • • Otter #1 Frac Procedure Purpose of Well Work:Fracture stimulate Zone 3(lower most perforated zone)of Otter#1 Current Condition as of September 9th: Fluid level at 3050' MD. Zero psi on tubing. Sliding sleeves at 3687' and 4205' are reported closed. Pre-Frac Work 1. Fill tubing with 3%KCL filtered brine. 2. Rig up Pollard slick line and test lubricator to 1500 psi. 3. Set PX plug in XN nipple at 4,648'. (a standing valve may also be substituted for the PX Plug) 4. Pressure test tubing to 5000 psi._for 5 minutes confirming sleeves are closed. Ensure annulus is filled, annular valve is open and monitored during pressure test. Ensure pressure test is noted in Daily Report. yrs 5. Pull PX plug (or standing valve) from 4,648'. Rig down Pollards Slick Line. 6. Rig up two frac tanks per BakerHughes layout request. Fill tanks with well water. 7. Rig up filtration unit and pump. Circulate and filter water til clean. Suggest first filtrations at 10 micron. Final filtration at 2 micron. Plan to heat water to 70 degrees F prior to frac. Frac 8. Install and test tree saver. 9. Rig up Baker Pumping services and test lines to 6000 psi. Set popoffs to 5000 psi. 10. Hold pre-job Safety Meeting. Discuss program, safety zones, potential hazards and lines of authority. Test comms and data recorders. Ensure diesel tanks are full. 11. Pump at least one wellbore volume of 20# linear gel with 3% KCL down 2 3/8" 4.7#tubing at the designed pump rate of 12 bpm. Note: closely monitor annulus pressure during all pumping operations. Shut down if pressure indicates communication between tubing and annulus. fziAL 12. Once the designed rate is achieved and the pressure stabilizes, a step down test will be performed at the end of injection. a. Instant shut in pressure (ISIP) &fracture gradient (F.G) will be recorded. b. Perforation friction, near wellbore friction, and effective open holes will be determined by the frac engineer on location using fracturing model software. c. Bottomhole closure, closure gradient, fluid leak off, and fluid efficiency might be may be determined after injection as well. Any changes to planned program are to be discussed with both BakerHughes and CIE in Anchorage. d. Baker Pumping Services proposal is attached. Note KCL concentration change to 3% and addition of biocide. 5 13. Frac well with 584 bbls of cross-linked slurry carrying approximately 50,000 lbs of Carbolite 20/40& FlexSand 12/20 sand mixture as follows: a. 107 bbls of cross-linked pad b. 150 bbls 1 ppa 6,000 lbs 87.5% Carbolite 20/40 & 12.5% FlexSand MSE 12/20 c. 289 bbls 1—6 ppa ramp = 36,502 lbs 87.5%Carbolite 20/40& 12.5% FlexSand MSE 12/20 d. 38 bbls of(6 ppa) =7,500 lbs 87.5% Carbolite 20/40 & 12.5% FlexSand MSE 12/20 14. Flush treatment to the top perforation with 20# linear gel and the final ISIP, final frac gradient, and total observed net gain will be recorded. 15. Rig down BakerHughes Pumping Services. 16. Rig up well to test equipment. Test lines to 3000 psi. 17. Put well to test. Flow back well. Rig up Pollards Slickline and swab well until it comes in. 6 0 0 Current Completion Diagram Cook Inlet Energy_ c)tterl Current Completion Diagain Auzut 301.2 2012 Qi`• i`.li•' Conductor :.,,.'i : i. : !�� . %�4A%= 2-3/8",4.7# J55 EUE 10 3/4",45.5#, L-80, BTC (ID =9.95' ;`v ;`i : ' Set @157' MDfTVD ::!� %•U Tubing (Coupling OD =3.063' 3`i`.% >`,.A:• `...i`.i i`.i�Ai ``i`A..i /1,,/'• • `iJ i.i`i• i`.• i.i�i.i J i.i�i3 `.i`,ii i.i`iJ • .;� Chemical injection mandrel with /. `. �v Ai . .i w .:• control lines @ 2599' MD/TVD i`,i`.• •• • v • Surface: 8 112"Hole w` v `. :•v 7", 23#,J-55, LTC (ID =6.1511 w A.�`i`•v Set@ 2092' MD/1VD .. : ! ' 0 ' Sliding Sleeve@3520' MD /TVD Perforation Intervals: .. :•. icv .I Retrievable Packer @3555. MD /TVD Zone: 1 =258' : %`v 3706'-3714'= 8' �� 0 j Sliding Sleeve@3687' MD /TVD• .,,s "'�� 3800'-3804'= 4' c? •c% 22' 3852'-3854'= 2' :;N• 3916'-3920'= 4' ••• v 3960'-3964'= 4' $,, '.,:, `•e w� ?: Retrievable Packer@ 4104' MD/TVD i`.i i`.i ?: 0 ic? SlidingSleeve 4205' MD /1VD Zone: 2= 252' ,v. •w, @ 4240'-4248'= 8' !,�v 18' 4270'-4274.= 4' • �. v 4403'-4406'= 3' �, 4489'-4492'= 3' �v .•-• 1 : Permanent Packer @ 4551' MD/TVD Zone: 3= 569' • 4710.-4725.= 15' �v kN X N nipple @ 4648' MD /TVD 4770'4773'= 3' y �• Mule Shoe @ 4679' MDffVD IV 4986'-4994'= 8' �� ;y 5014'-5018'= 4' 5094'-5144'= 50' v , 127' ����� Production:6118"Hole 5108'-5118'= 10' "' � !'se 5140'-5150'=10' � �� 41/2", 11.6#,WT-80, LTC (Drift ID =3.875') 5166'-5173'= 7' 5198'-5208'= 10' TD:@ 5686' MD /TVD 5269'-5279'= 10' • • Tubing Talley COMPANY: Cook Inlet Energytr.., CASING LINER TUBING WELL#: Otte#1 SIZE: 4-1/2" 2-3/8" FIELD: Prdty C7eek WEIGHT: 12611 4.7# COUNTY: Kenai GRADE: L-80 7-55 I. 2 STATE Alaska THREAD: EUE 1 3 DATE: 7/7/2012 DEPTH: 5686' 4680' LENGTH MAX.O.D. MIN.I.D. DEPTH TTEM DESCRIPTION FEET INCHES INCHES Fhb]. 1 KB 15.25 2 tubing Hanger 0.88 1.995 15.25 1 3 .,x-over sub 2-7/8"x 2-3/8"Pin by pin 1.13 2.875 1995 16.13 4 1 join 2-3/8"tubing 31.58 2.375 1.995 17.26 48.84 `- 9 5 Pup joint 4.1 2.375 1.995 6 Pup joint 2.2 2.375 1.995 52.94 55.14 7 Pup joint 2.16 2.375 1.995 8 80 jts 2-3/8"tubing 2523.28 2.375 1.995 57.3 2580.58 9 Injection Mandrel 7 2.375 1.995 10 29 jts 2-3/8"tubing 914.61 2.375 1.995 2587.58 Ili + 11 11 WXO sliding sleeve 2.76 3.06 1.87 3502.19 12 1-joist 2-3/8"tubing 31.57 2.375 1.995 3504.95 �r 13 3.77 OD HRP packer straight pull release 6 3.771 1.92 3536.52 set for 181t release(4-screws) 14 4 jte 2-3/8"tubing 126.39 2.375 1.995 354252 13 15 WXO eliding sleeve 2.76 3.06 1.87 3668.91 11,1 16 14-jte 2-3/8'tubing 441.81 2.375 1.995 3671.67 4113.48 17 3.77 OD Asrowsd 1-X ed in 8k compression 6.2 3.771 1.922 1, RH set RH release 18 3 jts 2-3/8"tubing 94.79 2.375 1.995 4119.68 MI 19 WXO sliding sleeve 2.76 3.06 1.87 4214.47 20 _l 1 jte 2-3/8"tubing 343.12 2.375 1.995 4217.23 IN15 21 Locator sub for Anrowdrill 0.52 3.46 1.938 4560.35 22 Seal assembly 2.27 2.688 1.938 (in pucka) 23 Arrowdrill permanent packs has 6k of tubing weight set dawn 2.51 3.77 2.688 4551.49 - I 243 jta 2.3/8"tubing 94.75 2.375 1.995 4617.12 �, 17 25 2-3/8"x 1.87"XN profile nipple 1.79"NO-GO 1.25 2.375 1.79 4648.75 tlj 26 1-joint 2.3/8"tubing 29.5 2.375 1.995 4650 EMI I" -27 2-3/8'wireline re-entry guide 0.5 3.06 1.91 -4679.5 4680 IC End of tubing __1 9.38'depth difference in wireline and tubing. in 19 111 !i 21 I I 23 i. PREPARED BY: OFFICE: E-MAIL: r Jason House 1-307-362-1883 Jason.HoustTweatherford.com PREPARED FOR: OFFICE: E-MAIL: 125 Don Jones 1-853-241-1213 dNlina.foreman( cookinlet.net Iir WEATHERFORD COMPLETION SYSTEMS 27 "f OFFICE:(303)893-0287 I FAX:(303)893-0288 Completion Systems 41017TH.STREET SUITE 250,DENVER,COLORADO 80202 8 I • Wellhead Schematic GGE Oil &Gas 47.7' . la-, ter lerar.lrel -,- 20.2' a m/^ a . IIlitiv .__ 24Y16'57.1 :♦ l t e ' %a• �. ril i�r, V,.:j 2-1515.5M 2-9/10.531 ,_,5'Sf1 :,:7• 1111111, 44.5' MIMI Air13 123.0' 24L16.5M "�,. } . 7-1/15'534 '-'r,1`, .-712,:' l ry -'' ;... f,��. �.�'• 962'10. ` 24.1' siiiN1ii PIIA� Y-•II.I .71: 1 -1- j II lee r 1lin iii �2-1716'634 11'5M °r1. .... � ire^ 1,,1R ._ ii '�I Ire • `ob �r:�I "''JJJJ�iii 23 2. 151 5i Y-V,a 634 111. INIMI MI 0-3M"C.SY10 7351'Ca.Me 5-1W CaMnp 2-7/5•TWlna W CofMl LM This drawing is the property of GE Oil 8 Gas Pressure Control LP and is considered confidential.Unless otherwise approved in writing, COOK INLET ENERGY LLC neither K nor its contents may be used,copied,Irenemrtled or reproduced except for the sole pupae.of GE Of&Ge.Pressure Gonad LP. OTTER#1 10-3/4"x 7-5/8"x 5-1/2"x 2-7/8" 5M LSH/Conventional DRAWN BTF 14FEB12 APPRV Wellhead Assembly, With T-EBS Tubing Head,T-M40-CCL FOR REFERENCE ONLY Tubing Hanger and Adapter Flange DRAWING NO. AE21399-B 9 • Proposal No: 1001154718B COOK INLET ENERGY LLC OTTER#1 API # 50-283-20163-0000 WILDCAT Field 12-14N-10W Tyonek County, Alaska August 13, 2012 Fracturing Proposal Prepared for: Prepared by: David Hall Kenneth Nix CEO Region Engineer Cook Inlet Energy Bus Phone: 907-334-6745 Email: david.hall@cookinlet.net Mobile: 907-317-8239 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-7764084 Account Manager (907) 659-2329 Bus Phone: 907-267-3487 Fax: 907-776-5606 Mobile: 907-229-6536 10 Gr4105 Operator Name: COO•LET ENERGY LLC • ri.. Well Name: OTTER#1 BAKER • Job Description: Zone Three Conventional Frac HUGHES Date: August 13, 2012 Proposal No: 1001154718B JOB AT A GLANCE Surface Treating Pressure (max) C 4,863 psF' Total Rate (max) 12.00 bpm Estimated Pump Time (HH:MM) 00:51 Frac Fluid 23,679 gals Lightning 2000 Flush 780 gals Linear Gel Proppants 43,751 lb CARBOLITE, 20/40 6,250 lb FlexSand MSE, 12/20 mesh Report Printed on; August 13,2012 6 39 PM Gr4111 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 11 Operator Name: COOK I T ENERGY LLC • v I Well Name: OTTER BAKER Job Description: Zone Three Conventional Frac HUGHES Date: August 13, 2012 Proposal No: 1001154718B WELL DATA RESERVOIR DATA Formation Type Shaley Sandstone Depth to Middle Perforation 4,995 ft Fracture Gradient 0.83 psi/ft Bottom Hole Fracture Pressure 4,145 psi Bottom Hole Static Temperature 110 ° F PERFORATED INTERVAL DEPTH(ft) Perf Diameter MEASURED TRUE VERTICAL (in) 4,710 - 5,279 4,710 - 5,279 I Total Feet Perforated 569 ft TUBULAR GEOMETRY Top Bottom Casing 4 1/2" O.D. (4.000" .I.D) 11.6# 0 5,686 Tubing 2 3/8" O.D. (1.995" .I.D) 4.7# 0 4,680 End of Tubing 4,680 ft Pump Via Tubing Report Ported on. August 13,2012 64 PM Gr4119 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 12 Operator Name: COOK HAW ENERGY LLC FA.. Well Name: OTTER BAKER Job Description: Zone Three Conventional Frac HUGHES • Date: August 13, 2012 ■7Y Proposal No: 1001154718B FLUID SPECIFICATIONS Frac Fluid: Lightning 2000 23,679 Gallons Components: 250 ppt Potassium Chloride Accelerator 5 gpt GLFC-5D Gelling Agent 2.5 gpt BF-7L Buffers/pH Control Product 2 ppt High Perm CRB-LT Gel Breaker 1 gpt Clay Master-5C Clay Stabilization Product 1 gpt Enzyme G-I Gel Breaker 1 gpt InFlo 250W Surfactant 0.7 gpt XLW-32 Crosslinker 0.4 gpt BC-3 Gel Breaker Flush: Linear Gel Pumped Liquid 780 Gallons Mixed Liquid Volume: 14,121 Gallons Components: 250 ppt Potassium Chloride Accelerator 5 gpt GLFC-5D Gelling Agent 2 ppt High Perm CRB-LT Gel Breaker 1 gpt Clay Master-5C Clay Stabilization Product 1 gpt Enzyme G-I Gel Breaker 1 gpt InFlo 250W Surfactant 0.4 gpt BC-3 Gel Breaker Proppants 50,002 lb 87.5% CARBOLITE, 20/40 12.5% FlexSand MSE, 12/20 mesh This job calls for 2 tanks filled to 450bbls each to yeild 177 bbl bottoms. This job is to be batch mixed. Breakers and Crosslinker to be run on the fly. Report Printed on August 13,2012 6'.40 PM Gr4127 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 13 • • Surface & Net Pressures �-. Surface Pressure(psi) BH Rate(bpm) a #3 Net Pressure(psi) BH Conc. (lbm/gal) _ 0 4800 _ 12.0012 . 280 6 s 4600 ::::: 200�iN Hml7m y 4400 _ 1ot " `: 120 2 C N + U c t 4200 12.0000 A 400 10 20 30 40 500 cA Time (min) Concentration/Area (Closure) 4600 4700 lbm/f 0 4800 " 0.: 4900 0•i 0.: Q 5000 ;�. Ii 1 5100 1 1.1 5200 1.; 2 5300 2.; 0 10 20 30 40 50 60 Length (ft) Proppant Design Summary Bottom Zone Frac Length - Created 53.589 (ft) Frac Length - Propped 46.089 (ft) Frac Height-Avg. 476.81 (ft) Propped Height (Pay Zone) -Avg. 502.89 (ft) 14 S • Max Width at Perfs - EOJ 0.70466 (in.) Propped Width (Well) -Avg. 0.18012 (in.) Propped Width (Pay Zone) -Avg. 0.12317 (in.) Conc./Area (Frac) -Avg. at EOJ 0.97952 (Ibm/ft2) Conc./Area (Pay Zone) -Avg. at Closure 1.0783 (Ibm/ft2) Frac Conductivity (Pay Zone) -Avg. at Closure 4662.2 J(mDft) Dimensionless Frac Conductivity (Pay Zone) 6.7436 Beta 0 (atm-s2/gm) Avg. Fracture Permeability 454.2 (darcy) Propped Fracture Ratio (EOJ) 0.2429 Closure Time 128 (min) Screen-Out Time 27.86 (min) Proppant Displacement&Location Sch # Screen-out Distance From Distance to Screen-out From Screen-out to (ft) (ft) (ft) (ft) 4 No 0 14.763 3 No 14.763 46.089 2 No 46.089 53.262 1 No 53.262 53.589 15 Operator Name: COOKI T ENERGY LLC Viii Well Name: OTTER • BAKER Job Description: Zone Three Conventional Frac HUGHES ' Date: August 13, 2012 Proposal No: 1001154718B FRACTURE TREATMENT SCHEDULE INPUT PARAMETERS TVD Depth (Mid Perforation) 4,995 ft MD Depth (Mid Perforation) 4,995 ft Bottom Hole Frac Pressure 4,145 psi Bottom Hole Static Temperature 110 ° F Top Bottom Casing 4 1/2" O.D. (4.000" I.D.) 11.6 # 0 5,686 Tubing 2 3/8" O.D. (1.995" I.D.) 4.7 # 0 4,680 CALCULATED RATES, PRESSURES & HHP REQUIREMENTS Maximum Minimum Average Surface Treating Pressure (psi) 4,864 4,864 4,864 Slurry Rate (bpm) 12.0 12.0 12.0 Slurry Hydraulic Horsepower 1,431 1,431 1,431 PROCEDURE Fluid Proppant Type Volume Conc. Type Stage Cum Stage (gal) (ppa) (lbs) (lbs) 1 (Lightning 2000 1500 Diagnostics/Cross Over 2 (Lightning 2000 45001 Pad 3 (Lightning 2000 60001 1.000 87.5%CARBOLITE, 20/40 5250 12.5%FlexSand MSE, 12/20 750 6000 4 (Lightning 2000 104291 3.500 87.5%CARBOLITE, 20/40 31939 12.5%FlexSand MSE, 12/20 4563 42502 5 (Lightning 2000 12501 6.000 87.5%CARBOLITE, 20/40 6563 12.5%FlexSand MSE, 12/20 938 50002 Total 23679 50002 Report Printed on August 13,2012 6:40 PM Gr4141 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 16 Operator Name: COOKT ENERGY LLC • EMI Well Name: OTTERW BAKER Job Description: Zone Three Conventional Frac HUGHES ' Date: August 13, 2012 Proposal No: 1001154718B FRACTURE TREATMENT SCHEDULE TREATMENT SCHEDULE Surface Rates Volume Stage Treating Slurry Clean Prop. Rate Slurry Fluid Pump Pressure (bpm) Fluid (lb/min) Stage Cum. Stage Cum. Time Stag (psi) (bpm) (bbls) (bbls) (bbls) (bbls) hh:mm:ss 1 I 4863 1 12.0 12.0 I 35.7 35.7 35.7 35.71 00:02:58 2 1 4863 I 12.0 12.0 1 107.1 142.9 107.1 142.91 00:08:55 3 1 4746 1 12.0 11.5 481.21 149.6 292.5 142.9 285.71 00:12:28 4 1 4394 1 12.0 10.3 1513.51 289.4 581.9 248.3 534.01 00:24:07 5 1 4041 I 12.0 9.3 2355.61 38.2 620.1 29.8 563.81 00:03:11 Total Pump Time: 00:51:40 Job pump schedule is a ramp as follows: 4,500gal pad 6,000gal 1# Hold 10,429gal 1# -6# Ramp 1,250ga1 6# Hold 781ga1 flush Report Printed on: August 13,2012 640 PM Gr4141 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping 17 Operator: COOK INA/ENERGY LLC • ��•• Well Name: OTTER#1 BAKER • Dater August 13, 2012 HUGHES Proposal No: 1001154718B PRODUCT DESCRIPTIONS BC-3 BC-3 is a clear, colorless liquid that is designed to assist the degradation of alkaline pH fracturing fluids. Usage can be from 70 deg F to 300 deg F (21 deg C- 149 deg C)when proper testing is performed. It can be used with enzyme breakers to lower pH of the system and allow the enzymes to work more effectively without damaging the enzymes. BF-7L A liquid pH control agent used to adjust fracturing gels into the pH range of 8.5 to 10.5. This product was designed to retain its buffering capacity at high temperatures. CARBOLITE, 20/40 A man-made, low density, medium strength ceramic proppant. It has a density only slightly higher than sand while providing improved conductivity. It is used in medium closure pressure situations. Registered Trademark of Carbo Ceramics. Clay Master-5C A concentrated low molecular weight polyamine used in water, brine or acids to protect the formation against damage due to clay swelling, sloughing and migration. Enzyme G-I A patented, polymer specific enzyme breaker custom formulated to degrade polymer into non-damaging components. GLFC-5D A high yield guar gum gelling agent slurried in an environmenatlly friendly carrier. Used to prepare hydraulic fracturing fluid systems. High Perm CRB-LT A controlled release breaker(C.R.B.)for use in water-base fracturing fluids. Controlled release coating allows proppant transport and then after pumping it degrades the base polymer for crosslinked and linear gel systems. Potassium Chloride A granular salt used to reduce clay swelling caused by water-base cementing fluids. XLW-32 A liquid Borate crosslinker (Boric Acid) used in gel systems. Report Printed on:August 13,2012 6:41 PM Gr4163 Have more questions?You can find us at: Report Printed on:August 13,20126:40 PM http://www.bakerhughes.com/products-and-services/pressure-pumping 18 r • • Cook Inlet Energy, LLC RECEIVED 601 W. 5th Avenue, Suite 310 SEP 1 1 2012 Anchorage, Alaska 99501 p Phone: (907) 334-6745 Fax: (907) 334-6735 AOGCC DATA TRANSMITTAL Date: September 11, 2012 To: Guy Schwartz 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 Otter#1, API#50-283-20163-00 In accordance with Alaska Regulations 20 AAC25.537(b), we request that confidentiality be extended to all of the following information. Qty Description 1 CD - Otter#1 - Cement Bond Log; Format: PDF; 1 file ,,Z J 0 7 1 Printout of above listed CD Please sign below to acknowledge receipt. Received By: \, Date: fes\ '1 Returned to Cook Inlet Energy, LLC Date Accepted By: Transmittals_CIE_AOGCC.xlsx/A0GCC_9_11_12 ;0 J J F • • otter_cbl.txt volume in drive D is OtterlCBL_1 volume serial Number is 1771-922E Directory of D:\ 06/25/2012 03:42 AM 12,709,059 CBL Print.pdf 09/11/2012 08:55 AM 372 OtterlCBL_Files.htm 2 File(s) 12,709,431 bytes Total Files Listed: 2 File(s) 12,709,431 bytes 0 Dir(s) 0 bytes free I t ii -' c ,,,, / fa-sti,e1 et4iveg‘r% ,i 1 / , ,,,„,.„,,,,, , ,,,„: ,, ,_ , , , , , „,, ‘1,1112. , ., li N I m C r0 8 JSSt, eat, -- I owe w*/ f --_ Z$.3 • 20 lush , C6L. ‘ocs 1 1 _ FbrinpAir . Pb 5I LI i Page 1 0 • otter_cbl .txt volume in drive D is otterlCBL_1 Volume Serial Number is 1771-922E Directory of D:\ 06/25/2012 03:42 AM 12,709,059 CBL Print.pdf 09/11/2012 08:55 AM 372 OtterlCBL_Files.htm 2 File(s) 12,709,431 bytes Total Files Listed: 2 File(s) 12,709,431 bytes 0 Dir(s) 0 bytes free Page 1 Page 1 of 1 S Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Wednesday, September 05, 2012 12:29 PM To: 'courtney.rust@cookinlet.net' Subject: RE: Rough Frac Sundry Otter#1 Courtney, Reviewed sundry... Need: 1) CBL log on 4.5 " casing . 2) cementing details from vendor. The daily report is missing some key items. Returns during job is not mentioned ..or cement to surface. 3) Cover letter should be more detailed on what you are proposing ... which zone are you fracing?? Also summarize the well construction and why you think the frac will be isolated to the target formation. Any info on confining zones? 4) Procedure needs to spell out testing of the IA and tubing before you frac.... You must prove the Sliding sleeves are closed and holding. are you monitoring the IA pressure during the frac? I would include the well sketch provided in the 407 too. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Courtney Rust [mailto:courtney.rust@cookinlet.net] Sent: Wednesday, September 05, 2012 11:22 AM To: Schwartz, Guy L (DOA) Subject: Rough Frac Sundry Otter #1 Guy, This is the bones of it. I will work on assembling this nicely for you and get signatures on the forms. I'm also submitting a sundry for a RU#3 workover today and that one will take a priority I just know that it is possible and probable though it doesn't feel like it that I will be having a child imminently... maybe. Courtney � x 9/5/2012 • • ring BAKER HUGHES Proposal No: 1001149903G COOK INLET ENERGY LLC Otter#1-12 Kenai County, Alaska May 23, 2012 Surface Cement Post Job Prepared for: Prepared by: Courtney Rust Joshua Herald Drilling Engineer Technical Support Engineer Cook Inlet Energy Bus Phone: 907-776-4084 Bus Phone: 907-433-3809 Email: Joshua.Herald@bakerhughes.com Email: courtney.rust@cookinlet.net Mobile: 907-398-8303 Mobile: 907-350-0091 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Fax: 907-776-4087 Bus Phone: 907-267-3487 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • • Operator Name: COOK INLET ENERGY LLC Eris Well Name: Otter#1-12 BAKER Job Description: 7" Surface Casing HUGHES Date: May 23, 2012 Proposal No: 1001149903G JOB AT A GLANCE Depth (TVD) 2,063 ft Depth (MD) 2,063 ft Hole Size 8.5 in Casing Size/Weight 7 in, 26 lbs/ft Pump Via 7"O.D. (6.276" .I.D) 26 Total Mix Water Required 1,945 gals Weighted Spacer SealBond w/3%KCL 24 bbls Density 10.0 ppg Slurry Type I- Gas Tight 249 sacks CAD Density 12.0 ppg Yield 2.12 cf/sack Displacement Drilling Mud 76 bbls Density 9.3 ppg 13106-- 6 5lc .� `d 7-., Have more questions? You can find us at: http://www.bakerhug hes.com/products-and-services/pressure-pumping • • Operator Name: COOK INLET ENERGY LLC r1ROI Well Name: Otter#1-12 BAKER Job Description: 7" Surface Casing HUGHES Date: May 23, 2012 Proposal No:1001149903G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. DEPTH(ft) (in) MEASURED I TRUE VERTICAL 9.950 CASING I 157 I 157 8.500 HOLE I 2,063 I 2,063 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 7.000 I 6.276 I 26 I 2,063 I 2,063 Float/Landing Collar set @ 1,983 ft Mud Density 9.30 ppg Mud Type Water Based Est. Static Temp. 83 ° F Est. Circ.Temp. 74 ° F VOLUME CALCULATIONS 157 ft x 0.2727 cf/ft with 0% excess = 42.8 cf 1,906 ft x 0.1268 cf/ft with 94% excess = 468.7 cf 80 ft x 0.2148 cf/ft with 0% excess = 17.2 cf(inside pipe) TOTAL SLURRY VOLUME = 528.7 cf = 94 bbls 8-pix,Film Have more questions? You can find us at: http://www.bakerh ughes.com/prod ucts-and-services/pressure-pumping • • Operator Name: COOK INLET ENERGY LLC Fan Well Name: Otter#1-12 BAKER Job Description: 7" Surface Casing HUGHES Date: May 23, 2012 Proposal No: 1001149903G 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 529 / 2.12 = 249 sacks Type I Cement+ 0.05 lbs/sack Static Free + 0.2% bwoc R-3 +2% bwow Potassium Chloride + 25% bwoc LW-6+ 0.6% bwoc CD-32 + 1 gals/100 sack FP-6L+ 0.25% bwoc Sodium Metasilicate+0.9% bwoc BA-10A+ 5% bwoc MPA-1 +69.3% Fresh Water Displacement 75.9 bbls Drilling Mud @ 9.3 ppg CEMENT PROPERTIES SLURRY NO.1 Slurry Weight (ppg) 12.00 Slurry Yield (cf/sack) 2.12 / Amount of Mix Water (gps) 7.81 Amount of Mix Fluid (gps) 7.82 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. , ncd on May 23 2012 4.3`11 Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • 1/0West Coast Area Laboratory Report BAKER HUGHES Report#: CMT00671 2D Client e I In, ation ` - Company: Cook Inlet Energy District: Kenai Depth MD: 2000 Field: Otter Creek Job Type: Surface Depth TVD: 2000 Well: Otter#1-12 Hole Size: 8.5 BHST: 98 Prepared for: Courtney Rust Casing Size: 7-5/8" BHCT 89 Submitted by: Joshua Herald Cement: Type I Water: Fresh Tested b : Dom Lot#: Alaska G Date: 2/14/12 Desi Static Free 0.05 % BWOC CD-32 0.6 % BWOC Base Type I 100 % FP-6L 1 gal/100sack A-2 (SMS) 0.25 % BWOC Additives R-3 0.2 % BWOC BA-10 0.9 % BWOC A-9 (KCI) 2 % BWOC MPA-1 5 % BWOC LW-6 25 %BWOC Slurr Pro.e-_' : ----.. �� Density: 12 ppg Yield: 2.13 ft3/sack Mix Water: 7.781 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 89 237 149 109 67 19 17 123 26 Gel 10 sec 10 min 100 lb/soft 500 lb/sqft Free Water: 90 deg _ 0 Strength Fluid Loss: 8 cc/30min Consistom fleordin• of Bearden Consistenc Time is in h: Machine: Ace 30 bc: I 50 bc: I 70 bc: I 4:48 1 100 bc: 400 100 360- 90-.._. 320._ 80- 290- 70- - .. .. 240= i 60=. _ 200 _. .. _ .. _.. .. .. _... _ .. .. _ 120 . 30 _ _ J 90_ 20 40= 10-. _r-.. -- Ir 0 0 -T- I 0:00 1:00 2 00 3:00 4:00 0.00 0,00 lime(HH:Mv) Compress&Strength Dismiums 11111111111111I Temp 4:58 7:08 8 hr 12 hr 24 hr 48 hr 72 hr 96 hr 98 F 5"_ 500 psi 758 1550 2728 3491 400 20 5000: ---- 360- 18 7 4500-- 320- 16- 4000-... . -_........_._._ 280- g 14= c7,-;3500 240- 0 12- 3000_. ___. _- __- i...._ _. _. _ _. m 5 m200- m10- x2500-. n E n , E i= - - Fd..160- 'y 8- 52000- r. E 120- F- 6 7 1500 IQ i 80- 4_ 1000-40- 2- -_ 0:00 12:00 24:00 36:00 48:00 Time(HE:kt Comments: ,I Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage, whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • CEMENT JOB REPORT BAKER ,,_ ) IfikiII HUGHES CUSTOMER COOK INLET ENERGY LLC DATE 2 ..MAY-12 F.R.# 1001911203 - 6 'SERV.SUPV. REUBEN D JUNKERT LEASE&WELL NAME LOCATION COUNTY PARISH•BLOCK OTTER#1-API 50283201630000 12-14N-10W }} Tyonek Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kele: Sue/ace SIZE&TYPE OF PLUGSUST-CSG-HARDWARE MECHANICAL BARRIERS MD I TVD HANGER TYPES MD TVD Cement Plug, Rubber,Bottom 7 in Float Shoe 7-8rd Cement Plug,Rubber,Top 7 in Float Collar 7-Brd PHYSICAL SLYRRY PROP€RTIES , SACKS SLURRY SLURRY PUMP Bbl OF WGT YLD WATER TIME Bbl MIX MATERIALS FURNISHED BY BJ LAB REPORT NO. CEMENT PPG FT3 GPS IHR:MIN SLURRY WATER �SealBond w/3%KCL iQ 24 1 Drilling Mud 9.31 73.461 Type I-Gas Tight 249 12' 2.12 7.81 94.161 46.30 Available Mix Water 200 Bbl. Available Displ.Fluid 200 BbL TOTAL 1 191.631 46.30 HOLE TBG-CSG-D.P. COLLAR DEPTHS SIZE %EXCESS / DEPTH . S) 00 WQT. 1 TYPE MD TVD GRADE, SHOE FLOAT STAGE 8.5 145 2109 6.8751 7.625 29.7 CSG 27 27 6.276 7 26 CSG 2094 2094 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID ID.{_OD.1 WGT TYPE MD TVD DRAND&TYPE DEPTH TOP BTM SIZE THREAD; TYP: WGT. 10.1 10.8 45.5 CSG 157, 157' 3420 3420 7.625 BUTT WATER BASED 9.5 DISPL.VOLUME DISPL FLUID CAL.PSI CAL.MAX PSI'OP,MAX MAX TBG PSI MAX CSG PSI MIX t VOLUME UOM TYPE WGT. °BUMP PLUG TO REV. SQ.PSI RATED Operator RATED Operator WATER 77 I BBLS Drilling Mud 9.3 300 5792 rig l I . Circulation Prior to Job Circulated Well: Rig X BJ Circulation Time: 2 Circulation Rate: 6 BPM Mud Density In: 9.5 LBS/GAL Mud Density Out: 9.5 LBS/GAL PV&YP Mud In: PV&YP Mud Out: Gas Present: NO X YES Units: Solids Present at End of Circulation: NO X YES Displacement And Mud Removal Displaced By: Rig BJ XAmount Bled Back After Job: BBLS Returns During Job: NONE ART • Method Used to Verify Returns: Visual/Red dye Cement Returns at Surface: X YES / NO Were Returns Planned at Surface: NO X YES Pipe Movement ROTATION RECIPROCATION NONE UNABLE DUE TO STUCK PIPE Centralizers: NO X YES Quantity: 20 I Type: BOW RIGID Job Pumped Through: CHOKE MANIFOLD SQUEEZE MANIFOLD iTc-1 MANIFOLD NO MANIFOLD Plugs Number of Attempts by BJ: Competition: Wiper Balls Used: X NO YES Quantity: Plug Catcher Used: X NO YES Parabow Used: X NO YES Was There a Bottom: X NO YES Top of Plug: FT Bottom of Plug: FT Squeezes(Update Original Treatment Report for Primary Job) BLOCK SQUEEZE SHOE SQUEEZE TOP OF LINER SQUEEZE PLANNED UNPLANNED Liner Packer: X NO j YES Bond Log: X NO YES PSI Applied: Fluid Weight: LBS/GAL Casing Test(Update Original Treatment Report for Primary Job) Casing Test Pressure: PSI With LBS/GAL Mud Time Held: Hours Minutes EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: Top Connection was 8 round(Was told It was Buttress)so only had BL res fast lock on location PRESSURE/RATE DETAIL EXPLANATION «,ponPrefud,.- MAY•28.1220.30:41 Page 1 n i • (... CEMENT JOB REPORT BAKNag ER HUGHES Shoe Test(Update Original Treatment Report for Primary Job) Depth Drilled out of Shoe: FT Target EMW: LBS/GAL Actual EMW: LBS/GAL Number of Times Tests Conducted: Mud Weight When Test was Conducted: LBS/GAL Problems Before Job(I.E.Running Casing,Circulating Well,ETC) Was informed that top connection was Buttress and only brought Buttress fastlock,but top connection was 8 round. Problems During Job(I.E.Lost Returns,Equipment Failure,Bulk Delivery,Foaming,ETC) Problems After Job(I.E.Gas at Surface,Float Equipment Failed,ETC) PRESSUREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO,REP. X HR:NNN. PIPE ANNULUS BPM PUMPED TYPE TEST LINES 3000 PSI CIRCULATING WELL - RIG X BJ 06:30 ( Leave yard 05-22-12 w 07:00 F j Arrive at airport 07:30 ( Land in beluga 08:30 I Arrive on location H--- 08:35 i ' I Talked with Company Represenitive 08:45 1 1 +Journey Managment 09:45Arrive at Barge kindling 10:00 j 1 Leave barge landing,Take Van and Bulk Truck to location 11:00 ( I Pre-Job Meeting on location 11:15 j I Blow cement into Silo 11:45 I Rig down meeting 11:50 lRig down bulk truck 12:00 Leave location 15:15 " Fly home from Beluga 16:00 1 1 Arrive at Yard 05-22-12 15:30 1 I Leave Yard 05-23-12 16:00 I_. I Left Nikiski 16:30 1r J Arrive in Beluga 17:00 + Talked with Company Man on phone/Said to stand by 19:30 I I Went to location to check on equipment 20:30 s Arrive at location 20:351 Talk to company man 20:45 Tail gate safety meeting 20:55 Look over equipment 22.00 8 Return to camp/stand by 5-23-12 09:00 i t Go to location 5-24-12 10:00 Arrive on location 10:05 j Talk to company man 10:10 I I I ,Tail gate safety meeting 10:20 I 1 I 'Start maintenance to equipment 16:45 Called Field Cordinator to request supplies 22:00 Return to camp 5-24-12 12:10 Called on phone by Company man John Nickelson 5-25-12 12:15 Company man requests 81 sacks of 13.5 ppg cement added for washout 1210 Called Operations Manager 12:20 Operations Manager approved using 81 sacks of production cement for tail on surface 12:25 tmformed company man about approval Report Prx t d on. 114Y-2&1220.30.41 MOOS Page 2 • • //II CEMENT JOB REPORT BAKER �,� HUGHES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbl.FLUID FLUID SAFETY MEETING: BJ CREW X CO.REP. X MR:MIN. PIPE = ANNULUS BPM PUMPED TYPE TEST LINES 3000 PSI CIRCULATING WELL - RIG X &J 08:30 Taped to Supervisor at yard about supplies flight at 1100 11:30 I 1 Recived supplies from expeditor 12:00i._ Go to location 13:00 J IIIIIIIIIII_ Arrive on location 13:05 i Tap to company man/Go over Job 13:15 Tail gate safety meeting 13:25 1 ` 1 ? I Start mainetance to equipment 14:30 Calebrate all flows on pump 16:00 L 1 I Return to camp 17:30 I iI Go to barge landing to get Bulk hoses 19:00 Return to location 20:00 I Arrive on location 20:05 Talk to company man 20:10 Tail gate safety meeting 20:20 Spot equipment 20:30 Rig up 22:30 Wait on Rig 5-25-12 05:00 Take Fast lock to Rig floor 5-26-12 05:10 Landing joint has 8 Round collor/and fast lock is Buttress 05:15 Called Operation manager to find connection 05:35 Leave Location 06:15 Arrive at camp 06:39 Operation manager called!we do not have 8 round connection locally 06:41 Informed co/man and he said to call Brice with weatherford 06:45 1 l Called Weatherford but could not get ahold of Brice 06:54 I j Operations manager called/no one has 8 round connection locally 06:56 j� Informed co/man that no one has 8 round connection locally 07:26 ( Operations manager called/Baker Oil Tools can make crossover 07:31 I Informed co/man that BOT can make cross over/and Don Jones said to have it made 07:40 I I j Operations manager called!I told him to have the cross over made and sent to Beluga Airport 09:40 j _i._. Get cross over from airport 10:20 i 1Arrive on location 10:21 tad gate safety meeting 10:25 install x-over and fast lock 10:35 Install cement head with bottom plug in it 11:00 I Rig circulate well 12:50 1 L prejob safety meeting with rig crew 13:13 10g71 0 3.9 WATER Low pressure test 13:16 I 3309 I 03.9 WATER High pressure test 13:23 0! 0 3.9 WATER Bleed lines 13:30 I Rig circulate well 14:10 Prejob safety meeting with company man and rig crew 14:30 143 15 1.4 Drop bottom plug and load top plug 14:39 batch up seal bond spacer©10 ppg 14:47 215 2 3 .4 SPACER Mix and pump seal bond spacer 15:06 64 0 26.3 pumped 26.3 bbls seat bond spacer 15:08 Transfer Tail into sack saver Ramie Primed oe MAY•20-122630.4/ Page 3 • • 1I CEMENT JOB REPORT BAKER HUGHES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE BbL FLUID FLUID SAFETY MEETING: 8.1 CREW X CO.REP. X HR.MIN. BPM PUMPED TYPE PIPE ANNULUS TEST LINES 3000 PSI CIRCULATING WELL - RIG X BJ ( __, 15:30 Batch up 12 ppg lead cement 15:36 111 1.4 .3 CEMENT Mix and pump 12 ppg lead cement 15:58 268 4.2 96.9 CEMENT Pumped 96.9 bbis 12 ppg lead cement 15:59 267 j 4.1 1 CEMENT Mix and pump 13.5 ppg tail cement 16:09 118 1.3 301 CEMENT Pumped 30 bbls 13.5 ppg tail cement 16:12 165 5.5 2 I WATER Drop top plug ..__._ -4 16:14 115 i 4.9 1 MUD Displace 16:32 556' 0 75 MUD Displaced total of 77 bbls and did not bump plug 16:43 421 0 78 MUD Pump and additional 3 bbls for a total displacement of 80 bbls V7 16:44 Did not bump plug 16:53 420 0 78 !Shut in well with 420 psi on it 17:00 I Rig down safety meeting 17:10 Rig down 22:00 I 9 Leave Location 22:01 Thank You For Calling Baker Hughes Pressure Pumping PSI TO TEST BBL_CMT TOTAL PSI SPOT BUMPED BUMP FLOAT RETURNSI BBL. LEFT ON TOP OUT Service Su '8. Signature: PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT Y N Y !NJ , 242 420 Y N /P ��,,...011111111.0 Rpat PryltWan. 1,001•26-12203eM Page 4 JrE006 • • Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, Alaska 99501RECEIVED Phone: (907) 334-6745 Fax: (907) 334-6735 AUG 31 2012 DATA TRANSMITTAL Date: Augus Q;'-gc 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 at)_- ate.$' Well Data for Otter#1, API#50-283-20163-00 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 1 1 Well Completion report(AOGCC form 10-407), with attachments. 2 1 Copy of daily drilling reports or a summary report of daily drilling. (7 pages) 3 1 List of formations and other geologic markers encountered, and their depths MD and TVD 4 1 List of depth and formation name for oil and gas shows 5 1 Copy of Production Test Data 6 1 Paper copy of directional survey(4 pages) 7 1 Paper copy of final mudlog and report enclosed in report 2 CD's 1 File Listing for 2 CD's enclosed in Canrig Well Report(3 pages) 8 1 Digital version of well logs in LAS format and digital version of directional surveys in ascii. 9 - Paper copy of all Logs run (6 paper copies)- No sepia provided pdf&tiff format files on CD Bottom Log Top Log Log Date Run# Interval Interval Description 1 06/25/12 1 5,448' 2,070' WaveSonic Semblance Processed Log 1 06/21/12 1 5,448' 2,070' WaveSonic Field Log 1 06/21/12 1 5,448' 25' Quad Combo 1 06/21/12 1 5,448' 2,070' Induction Log-Array Compensated True Resistivity 1 06/21/12 1 5,448' 2,070' Induction Log-Array Compensated True Resistivity 1 06/21/12 1 5,448' 2,070' Borehole Volume Plot 10 Dry Cuttings already provided to AOGCC from Canrig 1 CD - Contains digital files for Items 8 and 9 above; Format:LAS,PDF,TIFF,ASCII; 17 files;55.4MB 1 File Listing for CD containing Items 8 and 9 above (1 page) Please sign below to acknowledge receipt. Received By: Date: Returned to Cook Inlet Energy, LLC Date Accepted By: Transmittals CIE AOGCC.xlsx/AOGCC 8 30 12 Ltr1 0 I Cook Inlet Energy_ Cook Inlet Energy, LLC Otter 1-1 2 S12-T14N-R10W S.M. May 19, 2012—June 19, 2012 is 'q 111,' r,"' i,; ---"IP I , : �.•'..'<<: Y:t,-i.•• f ._ ,.:: ...+. r: . v l�� F Ralph Winkelman: Senior Logging Geologist Steve Pike: Senior Logging Geologist Tollef Winslow Senior Logging Geologist Joshua Michaud Logging Geologist CONFIDENTIAL CAI\IRIG I'll] he.In II,.or I.1I,. I I - Ii Cook Inlet Energy � � 1Otter 1-1 2 I NI 1,i ♦ i r. Contents: tyli Daily Reports I; DML Data „' Final Well Report LAS Files June 19, 2012 Log PDF Files e- I, Log TIFF Files i y - �. I 1! Final Well Data . , CANRIG .__ Ij OOk� I Otter �l Pt -, ,.- ' • 0) *It i Ili June 19 2p1 2 Contents } Or9it Ahof 9aphpie il P.na/ ,, . i :1Data C441IVR` /G i -- • ill mudlog_cd_list.txt Volume in drive D is OTTER 1-12 volume Serial Number is 5143-BE6B Directory of D:\ 07/17/2012 02:11 PM <DIR> OTTER 1-12 0 File(s) 0 bytes Directory of D:\OTTER 1-12 07/17/2012 02:11 PM <DIR> . 07/17/2012 02:11 PM <DIR> . . 07/17/2012 02:11 PM <DIR> DAILY REPORTS 07/17/2012 02:11 PM <DIR> DML DATA 07/17/2012 02:11 PM <DIR> FINAL WELL REPORT 07/17/2012 02:11 PM <DIR> LAS FILE 07/17/2012 02:11 PM <DIR> LOG PDF FILES 07/17/2012 02:11 PM <DIR> SHOW REPORTS 07/17/2012 02:11 PM <DIR> TIFF FILES 0 File(s) 0 bytes Directory of D:\OTTER 1-12\DAILY REPORTS 07/17/2012 02:11 PM <DIR> . 07/17/2012 02:11 PM <DIR> 07/04/2012 12:20 PM 308,236 Otter #1-12 Daily Reports.pdf 06/27/2012 02:26 PM 19,090 Otter #1-12_Daily Report_05192012_157'-287'.pdf 06/27/2012 02:26 PM 18,924 Otter #1-12_Daily Report_05202012_287'-532' .pdf 06/27/2012 02:26 PM 19,344 Otter #1-12_Daily Report_05212012_532'-1042' .pdf 06/27/2012 02:26 PM 18,912 Otter #1-12_Daily Report_05222012_1043'-1723' .pdf 06/27/2012 02:26 PM 19,220 Otter #1-12_Daily Report_05232012_1724'-2106'.pdf 06/27/2012 02:26 PM 18,768 Otter #1-12_Daily Report_05242012_2106' .pdf 06/27/2012 02:26 PM 18,365 otter #1-12_Daily Report_05252012_2106'.pdf 06/27/2012 02:26 PM 18,622 otter #1-12_Daily Report_05262012_2106'.pdf 06/27/2012 02:26 PM 18,191 Otter #1-12_Daily Report_05272012_2106'.pdf 06/27/2012 02:26 PM 17,981 Otter #1-12_Daily Report_05282012_2106'.pdf 06/27/2012 02:26 PM 18,235 Otter #1-12_Daily Report_05292012_2106'.pdf 06/27/2012 02:26 PM 19,127 otter #1-12_Daily Report_05302012_2107'-2296'.pdf 06/27/2012 02:26 PM 19,100 Otter #1-12_Daily Report_05312012_2297'-2641' .pdf 06/27/2012 02:26 PM 18,955 Otter #1-12_Daily Report_06012012_2636'.pdf 06/27/2012 02:26 PM 19,162 Otter #1-12_Daily Report_06022012_2636'-3032' .pdf 06/27/2012 02:26 PM 19,079 Otter #1-12_Daily Report_06032012_3033'-3310'.pdf 06/27/2012 02:26 PM 19,154 otter #1-12_Daily Report_06042012_3311'-3494' .pdf 06/27/2012 02:26 PM 18,194 otter #1-12_Daily Report_06052012_3494'.pdf 06/27/2012 02:26 PM 19,419 Otter #1-12_Daily Report_06062012_3495'-3567' .pdf 06/27/2012 02:26 PM 19,230 Otter #1-12_Daily Report_06072012_3568'-4148' .pdf 06/27/2012 02:26 PM 18,546 Otter #1-12_Daily Report_06082012_4149'-4156' .pdf 06/27/2012 02:26 PM 19,162 Otter #1-12_Daily Report_06092012_4157'-4684' .pdf 06/27/2012 02:26 PM 19,181 Otter #1-12_Daily Report_06102012_4685'-4897' .pdf 06/27/2012 02:26 PM 20,475 Otter #1-12_Daily Report_06112012_4898'-5194'.pdf 06/27/2012 02:26 PM 19,153 Otter #1-12_Daily Report_06122012_5195'-5252' .pdf 06/27/2012 02:26 PM 18,195 Otter #1-12_Daily Report_06132012_5252'.pdf 06/27/2012 02:26 PM 17,983 Otter #1-12_Daily Report_06142012_5252'.pdf 06/27/2012 02:26 PM 18,297 Otter #1-12_Daily Report_06152012_5252'.pdf 06/27/2012 02:26 PM 13,870 Otter #1-12_Daily Report_06162012_5252'.pdf 06/27/2012 02:26 PM 18,690 Otter #1-12_Daily Report_06172012_5252'.pdf 06/27/2012 02:26 PM 19,298 Otter #1-12_Daily Report_06182012_5252'-5600' .pdf 06/27/2012 02:26 PM 19,588 Otter #1-12_Daily Report_06192012_5600'-5686'.pdf 06/27/2012 02:26 PM 18,539 Otter #1-12_Daily Report_06202012_5686' .pdf 06/27/2012 02:26 PM 18,745 Otter #1-12_Daily Report_06212012_5686'.pdf 06/27/2012 02:26 PM 18,334 Otter #1-12_Daily Report_06222012_5686'.pdf 36 File(s) 963,364 bytes Directory of D:\OTTER 1-12\DML DATA 07/17/2012 02:11 PM <DIR> . 07/17/2012 02:11 PM <DIR> 06/27/2012 02:26 PM 21,886 DbRaw.dbf 06/27/2012 02:26 PM 4,096 DbRaw.mdx 06/27/2012 02:26 PM 3,710,343 Otterl-12-LASfile.las 07/04/2012 12:26 PM 21,020,794 Otterl-12.dbf 07/04/2012 12:26 PM 101,376 Otterl-12.mdx 07/04/2012 11:54 AM 1,398 Otterl-12_SCL.DBF 07/04/2012 11:54 AM 6,144 otterl-12_SCL.MDx 06/27/2012 02:26 PM 345,442 Otterl-12_TVD.DBF 06/27/2012 02:26 PM 62,464 Otterl-12_TVD.mdx 07/17/2012 01:50 PM 526 otterl-12.hdr 06/27/2012 02:26 PM 18,290 otterl-12r.dbf 06/27/2012 02:26 PM 15,360 otterl-12r.mdx 12 File(s) 25,308,119 bytes Directory of D:\OTTER 1-12\FINAL WELL REPORT 07/17/2012 02:11 PM <DIR> . Page 1 1111 • mudlog_cd_list.txt 07/17/2012 02:11 PM <DIR> 07/04/2012 12:21 PM 3,740,160 Cook Inlet Energy otter #1-12 Final well Report.doc 07/04/2012 12:21 PM 425,697 Cook Inlet Energy otter #1-12 Final well Report.pdf 2 File(s) 4,165,857 bytes Directory of D:\OTTER 1-12\LAS FILE 07/17/2012 02:11 PM <DIR> 07/17/2012 02:11 PM <DIR> 07/04/2012 11:58 AM 3,701,243 OTTER 1-12 MUDLOG.las 1 File(s) 3,701,243 bytes Directory of D:\OTTER 1-12\LOG PDF FILES 07/17/2012 02:11 PM <DIR> 07/17/2012 02:11 PM <DIR> 07/09/2012 04:00 PM 4,870,364 OTTER 1-12 DRILLING DYNAMICS MD 1 INCH.pdf 07/09/2012 03:59 PM 7,463,278 OTTER 1-12 DRILLING DYNAMICS MD 2 INCH.pdf 07/09/2012 03:57 PM 13,943,026 OTTER 1-12 DRILLING DYNAMICS MD 5 INCH.pdf 07/09/2012 03:49 PM 4,152,685 OTTER 1-12 FORMATION LOG MD 1 INCH.pdf 07/09/2012 02:47 PM 6,056,392 OTTER 1-12 FORMATION LOG MD 2 INCH.pdf 07/09/2012 02:46 PM 11,545,997 OTTER 1-12 FORMATION LOG MD 5 INCH.pdf 07/09/2012 03:54 PM 3,514,576 OTTER 1-12 LWD COMBO LOG MD 1 INCH.pdf 07/09/2012 03:53 PM 5,225,255 OTTER 1-12 LWD COMBO LOG MD 2 INCH.pdf 07/09/2012 03:51 PM 9,805,889 OTTER 1-12 LWD COMBO LOG MD 5 INCH.pdf 9 File(s) 66,577,462 bytes Directory of D:\OTTER 1-12\SHOW REPORTS 07/17/2012 02:11 PM <DIR> 07/17/2012 02:11 PM <DIR> 06/27/2012 02:26 PM 69,481 Show Report #1 Otter 1-12.pdf 06/27/2012 02:26 PM 69,331 Show Report #2 Otter 1-12.pdf 2 File(s) 138,812 bytes Directory of D:\OTTER 1-12\TIFF FILES 07/17/2012 02:11 PM <DIR> 07/17/2012 02:11 PM <DIR> 07/17/2012 01:46 PM 139,230,304 OTTER 1-12 COMBO LOG MD 2 INCH.tif 07/17/2012 01:44 PM 79,570,708 OTTER 1-12 COMBO LOG MD 5 INCH.tif 07/17/2012 01:50 PM 138,792,244 OTTER 1-12 DRILLING DYNAMICS MD 2 INCH.tif 07/17/2012 01:41 PM 138,792,244 OTTER 1-12 FORMATION LOG MD 2 INCH.tif 07/17/2012 01:39 PM 80,354,628 OTTER 1-12 FORMATION LOG MD 5 INCH.tif 5 File(s) 576,740,128 bytes Total Files Listed: 67 File(s) 677,594,985 bytes 24 Dir(s) 0 bytes free Page 2 mudlog_cd2_list.txt volume in drive D is OTTER 1-12 PHOTO volume serial Number is 3BB5-D401 Directory of D:\ 07/18/2012 12:19 PM <DIR> SAMPLE PHOTOS 0 File(s) 0 bytes Directory of D:\SAMPLE PHOTOS 07/18/2012 12:19 PM <DIR> 07/18/2012 12:19 PM <DIR> 06/05/2012 01:20 PM 2,581,683 Coal 10.1pg 06/05/2012 01:20 PM 2,230,459 coal 20.jpg 06/05/2012 01:20 PM 2,276,769 Coal 30.jpg 05/31/2012 02:53 PM 1,512,835 otter_1-12_2590_ft.jpg 06/11/2012 08:20 AM 2,022,128 otter_1-12_4955' .jpg 06/05/2012 01:19 PM 2,262,888 Sand 10.jpg 06/05/2012 01:19 PM 2,379,233 sand 20.1pg 06/05/2012 01:19 PM 2,280,084 Sand 30.jpg 06/05/2012 01:19 PM 2,311,120 Tuffaceous Silt 10.1pg 06/05/2012 01:19 PM 2,276,144 Tuffaceous Silt 20.jpg 06/05/2012 01:19 PM 2,161,207 Tuffaceous silt 30.jpg 11 File(s) 24,294,550 bytes Total Files Listed: 11 File(s) 24,294,550 bytes 3 Dir(s) 0 bytes free Page 1 • • BU T _. ..„...:: . ,,....r ir, ri __,..„ , .� ' Ill. ' I ♦q r f-Vii. ►- i. 1 Ai' i n _ 1 ?w _ f` „ �: - 51, '41 I I ° 1L • r I � .e # 0 ,,11 " .,,, ,,.. ,, , - , , 7 , , -- ,,,_, , f� „ , _, ► -t 1 i r:- ' - ,1; t ., - - ii, '-' ;-___. i ,., 7; '' :,.._, ,, ?. ' WAVESONIC SEMBLANCE PROCESSED LOG COMPANY COOK INLET ENERGY WELL OTTER 1-12 CONFIDENTIAL FIELD PRETTY CREEK COUNTY KENAI STATE ALASKA Location Elev.: K.B. 177.70 ft SURFACE LOCATION: 2081'FNL&1805'FEL D.F. 177.70 ft G.L. 160.00 ft Date Processed 25-JUN-2012 Processed At FRS Anchorage Interval Processed 2070'-5448' Processed By K.Wood i, • • WAVESONIC HALLIBURTDN CONFIt IihhL COMPANY COOK INLET ENERGY WELL OTTER 1-12 ce LU N w W Ia < FIELD PRETTY CREEK J r Y COUNTY KENAI STATE ALASKA Z• o K a o a API No. 50-238-20163-00 Other Services: p DSN U Location SURFACE LOCATION: SDL 2081'FNL&1805 FEL ACRt >- a _1 ❑ z w M -I _r : q W., w OU 2 LL oO y Sect. 12 Twp. 14N Rge. 10W Permanent Datum GL Elev.160.0 ft Elev.: K.B. 177.7 ft Log measured from KB 17.7 ft above perm.Datum D.F. 177.7 ft Drilling measured from KB G.L. 160.0 ft Date 21-Jun-12 Run No. ONE Depth-Driller 5686.00 ft Depth-Logger 5448.0 ft Bottom-Logged Interval 5448.0 ft Top-Logged Interval SURFACE Casing-Driller 7.000 in @ 2096.0 ft @ © Casing-Logger 2094.0 ft Bit Size 6.125 in © @ Type Fluid in Hole KCL Density Viscosity 10.0 ppg 52.00 s/qt PH Fluid Loss 9.50 pH 5.0 cptm Source of Sample MUD PIT Rm @ Meas.Temperature 0.590 ohmm @ 66.00 degF © @ Rmf @ Meas.Temperature 0.43 ohmm @ 75.00 degF @ @ Rmc @Meas.Temperature 0.513 ohmm @ 75.00 degF @ @ Source Rmf Rmc CHART CHART Rm @ BHT 0.39 ohmm @ 103.0 degF @ @ Time Since Circulation Time on Bottom 21-Jun-12 12:30 Max.Rec.Temperature 103.0 degF @ 5448.0 ft @ @ Equipment Location 11640435 STERLING Recorded By C.GU LLETT Witnessed By M.MURRY G.KIRKLAND IVIIIIIIIIIIIIMIIIIIIIIIIIIMMIIMIIIIIIIIIIIIIIIIMIIIIIIIIIIMIIW- • DUAL SPACED NEUTRON SPECTRAL DENSITY HALLIBURTON ARRAY COMP. RESISTIVITY SONIC POROSITY DELTA-T COMPANY COOK INLET ENERGY O WELL OTTER1-12 CONFIDENTIAL •I< .7( < FIELD PRETTY CREEK w w z w LU U z CO Z I- ›- Y - COUNTY KENAI STATE ALASKA a a Other Services: o a API No. 50-238-20163-00 o NONE U Location SURFACE LOCATION: 2081'FNL&1805'FEL >- a _1 o z w D a O5 LL o co I- 0 Sect. 12 Twp. 14N Rge. 10W Permanent Datum GL Elev.160.0 ft Elev.:K.B. 177.7 ft Log measured from KB 17.7 ft above perm.Datum D.F. 177.7 ft Drilling measured from KB G.L. 160.0 ft Date 21-Jun-12 Run No. ONE Depth-Driller 5686.00 ft Depth-Logger 5448.0 ft Bottom-Logged Interval 5448.0 ft Top-Logged Interval SURFACE Casing-Driller 7.000 in @ 2096.0 ft @ @ Casing-Logger 2094.0 ft Bit Size 6.125 in @ @ Type Fluid in Hole KCL Density Viscosity 10.0 ppg 52.00 s/qt PH Fluid Loss 9.50 pH 5.0 cptm Source of Sample MUD PIT Rm @ Meas.Temperature 0.590 ohmm @ 66.00 degF @ @ Rmf @ Meas.Temperature 0.43 ohmm @ 75.00 degF @ @ Rmc @ Meas.Temperature 0.513 ohmm @ 75.00 degF @ @ Source Rmf Rmc CHART CHART Rm @ BHT 0.39 ohmm @ 103.0 degF @ @ Time Since Circulation Time on Bottom 21-Jun-12 12:30 Max.Rec.Temperature 103.0 degF @ 5448.0 ft @ @ Equipment Location 11640435 STERLING Recorded By C.GULLETT Witnessed By M.MURRY G.KIRKLAND • • ARRAY COMPENSATED HALLIBURTON TRUE RESISTIVITY 1" = 100' COMPANY COOK INLET ENERGY O WELL OTTER1-12 CONFIDENTIAL w N ... w r ce ¢ FIELD PRETTY CREEK r o ze _z 1 k Y a COUNTY KENAI STATE ALASKA • O o a API No. 50-238-20163-00 Other Services: 0 DSN U Location SURFACE LOCATION: 2081'FNL&1805'FEL SDL WAVE r Q >- 12 M J -I DZ ~ • W W Q o SS LL 0O rp Sect. 12 Twp. 14N Rge. 10W Permanent Datum GL Elev.160.0 ft Elev.: K.B. 177.7 ft Log measured from KB 17.7 ft above perm.Datum D.F. 177.7 ft Drilling measured from KB G.L. 160.0 ft Date 21-Jun-12 Run No. ONE Depth-Driller 5686.00 ft Depth-Logger 5448.0 ft Bottom-Logged Interval 5448.0 ft ) Top-Logged Interval SURFACE 4 Casing-Driller 7.000 in @ 2096.0 ft @ @ Casing-Logger 2094.0 ft Bit Size 6.125 in @ @ Type Fluid in Hole KCL Density Viscosity 10.0 ppg 52.00 s/qt PH Fluid Loss 9.50 pH 5.0 cptm 7 Source of Sample MUD PIT Rm @ Meas.Temperature 0.590 ohmm @ 66.00 degF @ @ Rmf @ Meas.Temperature 0.43 ohmm @ 75.00 degF @ @ Rmc @ Meas.Temperature 0.513 ohmm @ 75.00 degF @ @ Source Rmf Rmc CHART CHART Rm @ BHT 0.39 ohmm @ 103.0 degF @ @ Time Since Circulation Time on Bottom 21-Jun-12 12:30 Max.Rec.Temperature 103.0 degF @ 5448.0 ft @ @ Equipment Location 11640435 STERLING Recorded By C.GULLETT Witnessed By M.MURRY G.KIRKLAND • • ARRAY COMPENSATED HALLIBURTCIN TRUE RESISTIVITY 2" = 100' z COMPANY COOK INLET ENERGY } WELL OTTER 1-12 FIDENTIRL W ' C _ < FIELD PRETTY CREEK 1 r a • 1- I Y a COUNTY KENAI STATE ALASKA 0 a' API No. 50-238-20163-00 Other Services: O DSN U Location SURFACE LOCATION: SDL 2081'FNL&1805'FEL WAVE >- Z >- 2 J 0 D —' Q { w w Sect. 12 Twp. 14N Rge. 10W €i 0 - u-0 (.0 Permanent Datum GL Elev.160.0 ft Elev.: K.B. 177.7 ft Log measured from KB , 17.7 ft above perm.Datum D.F. 177.7 ft Drilling measured from KB G.L. 160.0 ft Date 21-Jun-12 Run No. ONE Depth-Driller 5686.00 ft Depth-Logger 5448.0 ft Bottom-Logged Interval 5448.0 ft Top-Logged Interval SURFACE Casing-Driller 7.000 in @ 2096.0 ft @ @ Casing-Logger 2094.0 ft Bit Size 6.125 in @ © Type Fluid in Hole KCL Density Viscosity 10.0 ppg 52.00 s/qt PH Fluid Loss 9.50 pH 5.0 cptm Source of Sample MUD PIT Rm @ Meas.Temperature 0.590 ohmm @ 66.00 degF @ @ Rmf @ Meas.Temperature 0.43 ohmm @ 75.00 degF @ @ Rmc @Meas.Temperature 0.513 ohmm @ 75.00 degF @ Source Rmf I Rmc CHART I CHART Rm @ BHT 0.39 ohmm @ 103.0 degF @ @ Time Since Circulation Time on Bottom 21-Jun-12 12:30 Max.Rec.Temperature 103.0 degF @ 5448.0 ft @ @ Equipment ILocation 11640435 I STERLING I I Recorded By C.GULLETT Witnessed By M.MURRY G.KIRKLAND 1 . • . BOREHOLE VOLUME HALLIBURTON PLOT R COMPANY COOK INLET ENERGY WELL OTTER1-12 CONFIDENTIAL ,.. N W Z WW Y FIELD PRETTY CREEK Li' J H E Y a z COUNTY KENAI STATE ALASKA O W o a API No. 50-238-20163-00 Other Services: 0 DSN U Location SURFACE LOCATION: SDL 2081'FNL&1805 FEL WAVE AC Rt >- U S OV t 7, Sect. 12 Twp. 14N Rge. 10W Permanent Datum GL Elev.160.0 ft Elev.: K.B. 177.7 ft Log measured from KB 17.7 ft above perm.Datum D.F. 177.7 ft Drilling measured from KB G.L. 160.0 ft Date 21-Jun-12 Run No. ONE Depth-Driller 5686.00 ft Depth-Logger 5448.0 ft Bottom-Logged Interval 5448.0 ft Top-Logged Interval SURFACE Casing-Driller 7.000 in @ 2096.0 ft @ @ Casing-Logger 2094.0 ft Bit Size 6.125 in @ @ Type Fluid in Hole KCL Density Viscosity 10.0 ppg 52.00 s/qt PH Fluid Loss 9.50 pH 5.0 cptm Source of Sample MUD PIT Rm @ Meas.Temperature 0.590 ohmm @ 66.00 degF @ @ Rmf @ Meas.Temperature 0.43 ohmm @ 75.00 degF @ © Rmc @Meas.Temperature 0.513 ohmm @ 75.00 degF @ © Source Rmf Rmc CHART CHART Rm @ BHT 0.39 ohmm @ 103.0 degF @ @ Time Since Circulation Time on Bottom 21-Jun-12 12:30 Max.Rec.Temperature 103.0 degF @ 5448.0 ft @ @ Equipment Location 11640435 STERLING Recorded By C.GU LLETT Witnessed By M.MURRY G.KIRKLAND • 0 i { 1 --....., / em e 4,frels LI.. (.. U:softfai4s.117_ A \ 1 i 5s.9016 _ N . til3aliz. t/ Ct15 \ 0, F rs. xo 7; o % 4. 6:. o' 4 aci 163-0 _ Ck., _ , _Is, if 't T A,, _. _ iwilulrnaa-- - --' pf i esei 1 ( , , , . .. 0 4111 otter_cd_list.txt volume in drive D is 120830_1037_1 volume Serial Number is 1F3E-D59E Directory of D:\ 08/30/2012 10:37 AM 1,892 120830_1037_Files.htm 08/29/2012 07:41 PM <DIR> DIRECTIONAL 06/25/2012 01:09 PM <DIR> LOGS 1 File(s) 1,892 bytes Directory of D:\DIRECTIONAL 08/29/2012 07:41 PM <DIR> 08/30/2012 10:37 AM <DIR> 08/29/2012 07:41 PM 21,046 G y r o d a t a Otter 1 .pdf 08/29/2012 07:52 PM 4,165 Otter_DirSurvey_Jun30_2012.prn 08/29/2012 07:53 PM 3,117 Otter_DirSurvey_Jun30_2012.txt 3 File(s) 28,328 bytes Directory of D:\LOGS 06/25/2012 01:09 PM <DIR> 08/30/2012 10:37 AM <DIR> 06/25/2012 01:09 PM 815,293 OTTER_1-12_BHV_51N_CORRECTED.pdf 06/25/2012 01:11 PM 2,136,664 OTTER_1-12_BHV_51N_CORRECTED.tif 06/25/2012 08:46 PM 1,982,062 OTTER_1-12_COMPOSITION_SIN_CORRECTED.pdf 06/25/2012 08:50 PM 6,294,684 OTTER_1-12_COMPOSITION_51N_CORRECTED.tif 06/25/2012 01:35 PM 535,238 OTTER_1-12_INDUCTION_11N_CORRECTED.pdf 06/25/2012 01:37 PM 683,656 OTTER_1-12_INDUCTION_11N_CORRECTED.tif 06/25/2012 01:29 PM 697,094 OTTER_1-12_INDUCTION_21N_CORRECTED.pdf 06/25/2012 01:25 PM 1,172,168 OTTER_1-12_INDUCTION_21N_CORRECTED.tif 08/30/2012 10:25 AM 6,124,587 OTTER_1-12_QUADCOMBO_CORRECTED_25.1as 06/25/2012 01:53 PM 11,505,211 OTTER_1-12_WAVESONIC_51N_CORRECTED.pdf 06/25/2012 01:49 PM 5,098,870 OTTER_1-12_WAVESONIC_51N_CORRECTED.tif 08/30/2012 10:25 AM 1,448,226 OTTER_1-12_WAVESONIC_SEMB_PROCESSED.las 06/26/2012 07:55 AM 16,192,807 OTTER_1-12_WAVESONIC_SEMB_PROCESSED.pdf 06/26/2012 07:55 AM 3,467,998 OTTER_1-12_WAVESONIC_SEMB_PROCESSED.tif 14 File(s) 58,154,558 bytes Total Files Listed: 18 File(s) 58,184,778 bytes 6 Dir(s) 0 bytes free Page 1 • S Cook Inlet Energy_ RECEIVE AUG 31 2012 August 30, 2012 AOGCC Ms. Cathy Foerster, Chair AOGCC Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Otter#1 Well Completion Cook Inlet Energy, LLC: Otter#1 Permit to Drill No: 212-028 Dear Ms. Foerster, Enclosed please find the Well Completion Report and Data required by the AOGCC's approval of Permit to Drill#212-028 to drill and complete Well Otter#1. Enclosed please find: 1. Well Completion report(AOGCC Form 10-407)with attachements 2. Summary of Daily Drilling Operations 3. List of Formations and other geologic markers encountered and depths 4. List of depth and formation names for oil and gas shows 5. Copy of Production Test data 6. Paper copy of Wellbore Directional Survey 7. Copies of final mudlog and report enclosed in report 2 CD's. 8. Digital version of all logs run in LAS format and directional survey in ascii format 9. Paper copies of all logs run and reproducible file in pdf and tiff format 10. Dry cuttings already provided to AOGCC from Canrig. 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 A AUG 31 2012 STATE OF ALASKA ASKA OIL AND GAS CONSERVATION w1AIMISSION F WELL COMPLETION OR RECOMPLETION REPORT AQg &G � 1a.Well Status: Oil Gas n . SPLUG n Other n Abandoned n Suspended Li lb.Well Class: II 20AAC 25.105 20AAC 25.110 Development u Exploratory ❑✓ • GINJ n WINJ WAG WDSPL No.of Completions: Service Stratigraphic Test 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: COOK INLET ENERGY,LLC Aband.: 7/17/2012 212-028 • 3.Address: 6.Date Spudded: 13.API Number: 601 W 5TH AVE ANCHORAGE ALASKA 99501 5/19/2012 50-283-20163-00 . 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2081'FNL 1805'FEL SEC 12 T14N R10W SM AK • 6/19/2012 OTTER#1 • Top of Productive Horizon: 8.KB(ft above MSL): 177.7. 15.Field/Pool(s): GL(ft above MSL): 160 Total Depth: 2081'FNL 1805'FEL SEC 12 T14N R1 OW SM AK 9.Plug Back Depth(MD+TVD): EXPLORATORY . 5480'MD 5447'TVD 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation. Surface: x- 327439.01 - y- 2675720.301 . Zone- 4 5686'MD/5614'TVD - -� 390579 27)21.-1-"I h TPI: x- y- Zone- 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 327379.14 y- 2676194.62 Zone- n/a N/A 18.Directional Survey: Yes .i No Li 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071):MA Vstiti 22.Re-drill/Lateral Top Window MD/TVD: L3 Li Cita/225, 2/2ES/t IA j DEN , ileut.,44 1314V)Wue ai. N/A 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASINGFT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 10 3/4 , 45.5 L80 SURF 157' SURF 157' driven 7 1 23 J55 SURF 2096 SURF 2095' 8 1/2 96.9 bbl 12PPG lead 30 13.5ppg to n/a 4 1/2 11.6 L80 SURF 5637 SURF 5604' 6 1/8 67 bbl 13.5 ppg n/a 24.Open to production or injection? Yes Non If Yes,list each 25. TUBING RECORD interval open(MD+TVD of Top&Bottom;Perforation Size and Number): SIZE DEPTH SET(MD) PACKER SET(MD/TVD) SEE ATTACHED 2 3/8 4680' 3555' 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED i _I/ n/a n/a 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: 'Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: see attached see attached Test Period -0 Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate -0 28. CORE DATA Conventional Core(s)Acquired? Yes Li No n Sidewall Cores Acquired? Yes i No U If Yes to either question,list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. RRF;MS SEP 04 2012 ;'a Form 10-407 Revised 12/2009 CONTINUED ON REVERSE 7/ 1 O,zs,1v Submit original only 0 `G S • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ✓❑ Yes ❑ No If yes, list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Sterling 1,228' 1,227' needed,and submit detailed test information per 20 AAC 25.071. Beluga 3,240' 3,235' See Attached Formation Testing Summary Formation at total depth: 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Nam -)a v d /4 h�L Title: C Signature: � Phone: yep - .Y3}' -290 y Date: e52 _Jo 7220/A A 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 1b: 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 12/2009 • • 8/30/2012 Otter #1, API# 50-283-20163-00 Geologic Markers CONFIDENTIAL Name Measured Depth TVD Sterling 1,228' 1,227' Beluga 3,240' 3,235' • • 8/30/2012 Otter#1, API# 50-283-20163-00 Oil and Gas Shows CONFIDENTIAL Name Measured Depth TVD Beluga Show#1 4,970'-5,020' 4,944-4,994' Beluga Show#2 5,078'-5,137' 5,051'-5,109' • • Cook Inlet Energy_ Otter #1 Completion Diagram ;ire ♦'A : Conductor: ' : •:': ��!oZ 2-3/8",4.7#,J55, EUE ' 10 3/4",45.5#, L-80, BTC (ID=9.95") : � w1`;_ Tubing(Coupling OD = 3.063") Set @157' MD/TVD -.:.r.: A a tidy 4,'r.• .��V. Chemical injection mandrel with % 0�` ` 4..:-;:;:t.• ♦,*; • control lines @ 2599' MD/TVD % ♦may Surface: 8 1/2"Hole • -.. �.A%�• • 7", 23#,J-55, LTC(ID =6.151") ••;:• Ar• Set@ 2092' MD/TVD is; :N; A r,• . • Perforation Intervals: v Qi �v``T, Sliding Sleeve @3520' MD/TVD v Zone: 1 =258' -Retrievable Packer @3555' MD/TVD 3706'-3714'=8' : v 3,737'-3,739'=2' 0 v Sliding Sleeve @3687' MD/TVD 3,768'-3,770'=2" ..: N.: 26' 3800'-3804'=4' 3852'-3854'=2' ` `• 3916'-3920'=4' s'` 3960'-3964'=4' ..• %v• Retrievable Packer @ 4104' MD/TVD ✓•r 2Z40- 2=258' ✓.v r77.1 v SlidingSleeve @4205' MD/TVD 4240'-4248'=8' v 3 ,./ 18' 4270'-4274'=4' �v �v 4403'-4406'=3' 4489'-4492'=3' ` �% 4v, Zone: 3=569' v Permanent Packer @ 4551' MD/TVD 4710'-4725'= 15' v. a` 4770'-4773'=3' A �'', 4986'-4994'=8' .." XN nipple @ 4648' MD/TVD 5014'-5018'—4' • • j Mule Shoe @ 4679' MD/TVD 113' 5094'-5144'=50' ✓ 5108'-5118'= RePerf � ,e 5140' 5150'=RePerf+ 6' :';',.....,.......„.s.1\% e 4 1/2", 11on: 6 1/8" I 1 6#, WT'80, LTC (Drift ID =3.875") 5166'-5173'=7' 5198'-5208'= 10' 5269'-5279'= 10' TD: @ 5686' MD/TVD • ' • ___j COMPANY: Cook Inlet Energy CASING LINER TUBING ICL WELL#: Otter#1 SIZE: 4-1/2" 2-3/8" fife FIELD: Pretty Creek WEIGHT: 12.6# 4.7# r COUNTY: Kenai GRADE: L-80 J-55 2 STATE: Alaska THREAD: EUE 3 DATE: 7/7/2012 DEPTH: 5686' 4680' LENGTH MAX.O.D. MIN.I.D. DEPTH ITEM DESCRIPTION FEET INCHES INCHES FEET 1 KB 15.25 2 tubing Hanger 0.88 1.995 15.25 i 3 x-over sub 2-7/8"x 2-3/8"Pin by pin 1.13 2.875 1995 16.13 4 1-joint 2-3/8"tubing 31.58 2.375 1.995 17.26 9 5 Pup joint 4.1 2.375 1.995 48.84 . i 6 Pup joint 2.2 2.375 1.995 52.94 7 Pup joint 2.16 2.375 1.995 55.14 8 80 jts 2-3/8"tubing 2523.28 2.375 1.995 57.3 2580.58 9 Injection Mandrel 7 2.375 1.995 10 29 jts 2-3/8"tubing 914.61 2.375 1.995 2587.58 11 WXO sliding sleeve 2.76 3.06 1.87 3502.19 m�'3 11 12 1-joint 2-3/8"tubing 31.57 2 _ set for I8k release(4-screws) 14 4s jtsf 2-3/8"tubing 126.39 2.375 1.995 3542.52 ■ 1 13 15 WXO sliding sleeve 2.76 3.06 1.87 3668.91 16 14 jts 2-3/8"tubing 441.81 2.375 1.995 3671.67 In �4 - SI 17 3.77 OD Arrowset 1-X set in 8k compression 6.2 3.771 1.922 4113.48 RH set RH releaseism _ f 18 3-jts 2-3/8"tubing 94.79 2.375 1.995 4119.68 =11 19 WXO sliding sleeve 2.76 3.06 1.87 4214.47 20 11 jts 2-3/8"tubing 343.12 2.375 1.995 4217.23 ' 15 21 Locator sub for Arrowdrill 0.52 3.46 1.938 4560.35 22 Seal assembly 2.27 2.688 1.938 (in packer) • f 23 Arrowdrill permanent packer has 6k of tubing weight set down 2.51 3.77 2.688 4551.49 24 3-jts 2-3/8"tubing 94.75 2.375 1.995 4617.12 mi 1 lI 17 25 2-3/8"x 1.87"XN profile nipple 1.79"NO-GO 1.25 2.375 1.79 4648.75 N� 26 1-joint 2-3/8"tubing 29.5 2.375 1.995 4650 E I' 27 2-3/8"wireline re-entry guide 0.5 3.06 1.91 4679.5 E. p End of tubing 4680 =1+ 9.38'depth difference in wireline and tubing. !j( 19 -- ITIIIII 21 . 23 r; PREPARED BY: OFFICE: E-MAIL: _'� Jason House 1-307-362-1883 Jason.House@weatherford.com PREPARED FOR: OFFICE: E-MAIL: .fir 25 Don Jones 1-855-241-1213 drillincl.foreman(c�cookinlet.net �1 VP WEATHERFORD COMPLETION SYSTEMS E_l 27 Weatherford® OFFICE:(303)893-0287 FAX:(303)893-0288 Completion Systems 410 17TH.STREET SUITE 250,DENVER,COLORADO 80202 • . Final Perforations Otter #1 - API 50-283-20163-00 Zone Top Perf Bottom Perf TVD TVD Ft Perfs Total Top Perf Btm Perf Ft Perfs 3706 3714 3695 3703 8 8 3737 3739 3726 3728 2 2 3768 3770 3756 3758 2 2 3800 3804 3788 3792 4 4 #1 3852 3854 3839 3841 2 2 3916 3920 3902 3906 4 4 3960 3964 3946 3950 4 4 4240 4248 4223 4231 8 8 #2 4270 4274 4252 4256 4 4 4403 4406 4483 4486 3 3 4489 4492 4469 4474 3 3 4710 4725 4687 4701 15 15 4770 4773 4747 4750 3 3 #3 4986 4994 4780 4788 8 8 5014 5018 4988 4992 4 4 5094 5144 5067 5116 50 50 RePerf 5108 5118 5081 5091 10 - RP+Add 5140 5150 5112 5122 10 6 5166 5173 5138 5145 7 7 5198 5208 5170 5180 10 10 5269 5279 5141 5151 10 10 Total Perfs 157 • . • Avg.Lgth. RIG# #DIV/0! WELL# TBG SIZE Jts.on Rack TBG WT 0 TBG THREAD TBG GRADE Ft.on Rack DATE TUBING SUMMARY RIG 0.00 Date 1/0/1900 WELL# 0.00 TUBING 0 0.00 0.00 TBG WT. 0 JTS RAN OKB TO BF 0.00 FT ON RACK FT RAN ITEM Description includes: SIZE,TYPE,CONNECTION(JTS#4) ID OD LENGTH TOP BOTTOM 1495.24 1495.24 102 31.57 1463.67 1495.24 31.59 1432.08 1463.67 31.55 1400.53 1432.08 105 31.53 1369.00 1400.53 31.64 1337.36 1369.00 31.55 1305.81 1337.36 31.62 1274.19 1305.81 31.56 1242.63 1274.19 110 31.54 1211.09 1242.63 31.64 1179.45 1211.09 31.65 1147.80 1179.45 31.59 1116.21 1147.80 31.53 1084.68 1116.21 115 31.54 1053.14 1084.68 31.60 1021.54 1053.14 31.68 989.86 1021.54 31.59 958.27 989.86 31.56 926.71 958.27 120 31.67 895.04 926.71 31.58 863.46 895.04 31.64 831.82 863.46 31.60 800.22 831.82 31.50 768.72 800.22 125 31.56 737.16 768.72 31.55 705.61 737.16 31.61 674.00 705.61 31.57 642.43 674.00 31.58 610.85 642.43 130 31.57 579.28 610.85 31.61 547.67 579.28 29.62 518.05 547.67 31.55 486.50 518.05 31.55 454.95 486.50 1.35 31.65 423.30 454.95 31.58 391.72 423.30 31.65 360.07 391.72 31.57 328.50 360.07 31.64 296.86 328.50 140 31.40 265.46 296.86 31.50 233.96 265.46 31.64 202.32 233.96 31.59 170.73 202.32 31.66 139.07 170.73 145 31.56 107.51 139.07 146 31.59 75.92 107.51 pup joint 27.08 48.84 75.92 _ 147 31.58 17.26 48.84 hanger x-over .88 16.38 17.26 hanger 1.13 15.25 16.38 RKB 15.25 . 15.25 • • V o CO N Ol N M a m M M VI Ol COM M CO CO n V CO CO n V V CO CO CO CO O ^ c-1 i lO n o0 Ol O O N .ti N '~ '~ l0 e-I IN N N n N N `, 0 O .•-1 .--I CO .-I .-1 .-1 .-1 .-I .-1 .--1 .--I .i m m E a 3 0 . O N N W . . . M .-1 ei N CO 00 V1 O CO V1 N M .-I CO N R 0 e-I O O o O L/1 ti 0 .1 .-1 O O O �O N. ,._j 4_4 .--1 O O O Lu" O .O-I C m l7 .o O V CO N n O Ol R co V1 N- l0 CO l0 O M 1-1 l0 V N l0 N CO O tO O O O ei CO CO IN CO CO ti CO CO M CO NCr N CO N CO N V N lf1 O IN N M V Ol ID ID CV CO OD V l/1 V1 ID -o N CO M .-I O M CO CO CO V CO N- M N N ei M CO ei .-I M N CO CO ei M ei !a i N � CC a CO N N Ol O ei N M M M CO n 00 m M VI V1 IN N M CO Ill O '7 1/1 1/1 In V1 00 ^ Ol .-1 e-1 .-I M V v1 6 '1 n o0 00 n al O N N V N In In In in1n inE N .-1 ei ei ei -1.-I . e4 CO .-I N N N N N N N N J O d > T w .c E 3 .q a CO 0 2 0- .LF/`0 m E 0 H 'IpC ..._ m 2 m -0 la t K m J m c= v o i • • a 00 N N en N N O O 00 00 N N M Ol Ol M N N O1 Ol 00 N N .--I N a a O N N N M 0 0 N N a a N N N N N M a a a a us 0O LD l° tD lD tD N N N N ONO N N O O N N N N N N N N N N N N N N N N 0 Y t — . a 3u _o 0 o N m N o 00 o 00 O 00 N CO CO 0 a CO O 00 O CO N Ol O O m O d o co o O o 0 0 0 0 0 0 d 0 0 N d tc (• 7 0 o N a N o 00 O to O O1 0O N N O N a Q Cr 0 N a N o o m o CO N 00 00LC, O1 od N MCO 0 0 N N M N 00 M N N 00 N CO W �j MOl N v1 M CO a N O 01 N N CON N M O a N N N (0 2 3 CO to N m N N 00 CO 00 CO O1 N m Ol Ol M N N O1 Ol CO N N . N a a W ui � m t` ^ N N a N Oi 0 O. o N N N N N MCO a s a a a N N N CO N N 00 00 N m M m M m en M en M M In en en m en E N N N CO J O S1 > a 0 0 0 0 0 0 0 O O 0 0 0 0 O N Z. N f1N'I N N .1 CO .N-I o C E N N N N .N-1 N N • CO a N 2 .y 01 co .N .Ny N 00 0 i w VS 2 o t V 2 0 LA2 a, co u CC rii c 2 v CO CD A a c y O C N V1 L N H N •-i w x I 0 v O c m 0 y a . v E ai "> 2 I :7‘ a ° m 2 a m .n `- en c c ovI0. a E w 0. iii, c 1-1 W 9 Y 0 E 0 0) U V C ., 2 T C .w a)A i>° 2 Y a w 3 CO. 412 v Cu) r v MI v E v H ,r2 ei CC0 41 V — 00 CL W M Z Q @.) 0°0 Q Q 0 3 N j u Q a ~ O 00 .. 00 m m L C Z ° al W C N O V pCp VI a) U w W U O a-) d aL0-. C O. 0 m a .' O Op a+ 00 Q C > Z Co J N C 'K J w N OD rr N Z v m o N 3 = 3 U -° 3 ° w V c 2 m Q o .m 6 F- d u Z 00 v C V N C N V, CO N C 3 Q L F Z m N ° 33 _ Y v ° w o Y m a v° O " oma` r 3 _ W c o 3 ° O O 2 L O 2 0 2 ICIL 0 -p v 2 C 2 vI eau 000 300 0 _ 0 00 u0 00 300 C.) (0 m 000 o 00 @I 3 a 3 3 3 3 J 3 CO 3 3 3 3 3 3 3 3 a a 3 3 3 3 O 0000000000000000000000000000000000000000000000000000 00000000000000000000009000000000000000000000000000000 O o o .-i Cr; CO 00 CO Cr; O1 O O O O1 CO CO ..4 O In N a O1 O CO O .-4 O O O O Cr; Cr; O O O O CO CO O O N N O O O O O O O N O Cr; M 0 0 en Cr; N a N CO a CO N V1 M 1l1 O N o M O a N CO O N O M O l!1 N O fn a M O 0 a N N a 0 0 0 0 0 N N O O N CO O a N h O CO 00 00 O1 Ol O O N N M M a a CO N Cr; O N .-1 N M CO CO 00 00 Cr; ea O N N N N m M M a a CO N 00 CO Ol Ot N N CO CO N N O a to N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 04 N N N N aI 2 2 x H x N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N . N N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00000000000000000000000000000000000000000000000000000 0 N N N N N N N N N N N N N N N N N . N N N N N 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 M c N N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . L \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\..\\\\\\\\\\\\\\\\\ 2 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 0 • 0 • I a 15 colDrnarn t0 N 00 .-I N m N N N M co m U Ea U VII CO m VI LO O O H Ni .4 3..", C A n 00 1O• m n LO m Z1-/ v o a m 00 -0 CO LO m a CO a v 00 00 CO o E m MMM a o > a 0 0 0 0 o Y 0 vE E Ho H ra — H o. to a x co 0. w m N N N H HI� H 1- H H NI NI NI H H H H O O O m m m V1 V1 t0 l0 l0 t0 LO LO LO LID t0 E O 6 a O O O O O O O O 0 0 0 0 0 O o V N O O O O a 0 0 0 0 0 0 0 0 O O m 2 O O 0 .Hi 0 O O O O O 0 0 0 0 0 0 0 0 O O O 0 0 0 ro , O N O O O Oa Ci (7 O o O 601 O W 00 00 00 00 0 0 0 0 0 O O 'O NI t0 CO 61 01 00 a Illu O 0 O O Ci Ci Y V C 2 W NN N N N H H H H H 0 .-1 N .I .i .i N A IT_ c o o O NO .ai N N N m 0 0 0 0 0 0 0 0 00 IO vN 0. N 10 � ▪ G w x w `8 � • C 00 00 00 000 N Y 0 N N 00 00 0 0 0 0 0 0 O O t c W C D- E E 2 ge` E `V a; a 00 o .4 o o o N t0D >. N COM 00 0 0 0 0 0 0 0 0 a y > N tO VI m U to 0 W is v C H o_ .7, Cc OD a) 3v co 00 H o 0 a Y O Z ym •- •C 2 o wn w a 3 V a U in C a O OW O Y m d t`Vo 8 l)0 tND 0 LID 0 INn 0 a V I V co N N Oo0 III C O. a E >- N C '00 C c C C W .O C C " 03 v > - C x m H H . w O 3 'a IV v v — Lr,o v v (7 o i g $ NJ0 yCOOa 0o VI Io ° m ' 3 0 0 0 0 0 dU N 'p V1 CO N 0 y N N. H I� M 7 y y p�U m N d J O M 41 M M M H CO H H .� > 1L- v J > N N y v m a a m v C C H H ° C y S Y O• 'o O m v1 c Ol Y M C °o w - 3 0 on C O n d W 0' •v •v 0' > OCO C O J C •C >Y CO 2 C L L H .a $ L 0 a N H .ai. „9 h H o 01 00 -o O '0 0' v > 00 CO U O E C 0 OO x o 0' Z 0) c u to 3 a u o z a a w w w w v u z z n a p 0 3 no x m c a a o. a a a. u 5 3 3 3 = E x E x ° ° 3 x h x CO w = O ' WO c m C 00 00 00 E v V V O o.o a O x x Q y 00 c 00 ~ u O v z c c c c .• `- 0000 O o.0 u 1- I•••• > > m N 0 N F FO- H (0 d 0 0 0 0 0 0 w a w > .y w o o 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1: O in in N N O O iO CO O O Cr; in in in Cr; Vi v1 Cr; In O O O .-i o Ii1 O O M O O lit 0 0 0 0 0 0 0 Co CO O O O m M O O O O o O N O Cr V V1 Vl CO M CO M O O to Vl O H H N M CO LI-1 O O O O O NI M O N O to O M tt1 CO O O O M V1 u1 O O O HV1 V1 lD Lb W W O O H m 00 Oo 00 Oo m 01 O O H .i M M O O O O O O o H ,ii O .-1 N N N M M a a 1:,i V1 V1 tO 0 H l0 00 Oi Cr; ..-i N V1 H H H H R H NI H H H NI H N N N N N N NI NI NI <I NI H NI H H H NI H H NI H H H ✓ E E x H x N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N1 H H H H H NI H NI H .-i H N1 H H H H NI H H N H H NI N1 H H NI NI H NI NI NI NI N1 NI H NI H .-i H H H H H NI NI NI NI H H NI H 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o M m a a a a a a a a a a a a a a a a a a a a V1 V1 V1 Cl) V1 V1 V1 1.r1 V1 N V1 V1 V1 V1 Ill V1 V1 V1 V1 V1 V1 V1 V1 LO ID 10 10 10 11) .O 10 C .-I .-I NI .-I .-I .-I .-1 NI .-1 .-I .i NI NI .-1 .-I .i .-i NI .-I .-I .-1 .-I .-1 .-1 .-1 .-I .-1 .i .-I .-I .-I .-1 H H H H H .-1 .-1 .-I .-I .--I .-I .-I .--I .-I .-I .i .-I .-1 .i r1 .-i n n n n n n n n r n n n n r N n r N n n n n n n n n r n r n n n n N n n n r n n N N n n n n n r n r r n r • 0 • • 4- 0 V com E a 3 u -0 `v C 8 ill vy v \ • Co a a) E J To a > 'a > v •c E • In a S a v co co co cn N E Co Co 0 0 Jo U u O O 0 N 0 .-1r1 C w O 0 0 f6 u O O O � H tii LD 2 rn LU O O O LO N LO Co C V1 co O O O C 2 o L In N N N N N - - Co 1-1 r-I r4 N f0 d .E .1 ti 0 p p E O N N v 0 Ni CE N N TO J C W O S N Z p •c m 0N o v a v w a R w E E 2 A' LL o Co o 0m00 O 0 : Co eo v a •m 41 _ J h v1 a` a w co v N v L )-IL N O CO y J Y RI O. O o Ill L N C a a c OD co Tu co oo a N c c 3 a c w no S o a a y C O. = 0 0 a ai v J OJ Ly O Oa 0 .a1 m N y co ✓ r W L C O N C 9 E ll p_ Ort yL„ y O O CL rti 0 C a` v o , v N O O c c O °° d v E E n '° w -0 N N N N w2 L O v. C C J .- J LL 'p d . a R C r 0. h C N J - YO E L a) v a Y =O = o o in C =O J u a v .L. Y O z v a y `t O c a v c o 2 2 v Y °0° o. o c u u a v a1 r - n r L a t H H r Co Co Co aa) Co m - u v Co v1 a s OO O O O O O O O O o 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 0 0 0 0 0 0 0 0 0 0 o o 0 0 0 0 Co Co O o CO Co Co Co o 0 Co Co o 0 •4 .4 0 0 Co 0 0 Co m N N .. .1 v v o o r. r1 m m o 0010101 ,1 •4 v o 0 0 0 0 0 0 CoH Co r r b; 0; r1 r1 l',) Co O O O O ri .-N .1 .H N N in C V V V V Co CO .-1 ..1 ri 1--1 r1 .-N N N N N - w E E S ✓ x N N N N N N N lV N N N N N N N N N N N N N N N fV N N N N 1.-1 .-i ri ri ri r1 r1 r1 r1 r1 1.1 r1 r1 ri ri ri r-1 ri ri r1 ri ri r1 r1 ri - .1 r1 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 NN N N N N N N N N N N N N N N N N N N N N N N N N N N \\\\\\\\\\\\\\\\\\\\\\\\\\\\ LO LO LO LO LO LO LO LO LO LO N N N N N N N N N N N N N N N N N N C e-1 r-1 r-1 r-1 ri ri r. . . . . . .M r-1 . . . . . r-1 , . .-1 .-1 ri ri 11 r1 2 N N N N N N N N N N N N N N N N N N N N N N N N N N N N Y ra0 II • Cook Inlet Energy OTTER #1 Operations Summary 5/19/12 Spud. Drill from 136'-286', CBU, POH 5/20/12 drill from 286'-531', survey at 500'=2 deg 5/21/12 drill from 531'-1041', short trip,wash in hole, circulate and survey 5/22/12 drill from 1041'-1791',circ and survey, 2 deg 5/23/12 drill from 1701'-2064',circ, logged casing point at 2106' 5/24/12 POH, survey=2 deg, prepare to run casing 5/25/12 run 7" casing 23#LTC to 1649' L-'� 5/26/12 continue with casing to 2029', make up BJ cement head. PJSM w/all personnel on location, pressure test BJ cement lines to 3000 psi, drop 1st wipe plug& pump 1 bbl of water, bleed off and load VV 2nd wiper plug in cement head. Mix& pump 24 bbls of Seal Bond Spacer at 10 ppg&add 1 gallon of Red Dye, mix and pump 96.9 bbls of 12.0 ppg lead cement, mix and pump 30 bbls of 13.5 ppg tail cement. Drop 2nd wiper plug and displace with 77 bbls, did not bump plug, continued pumping 3 bbls more to displace total =80 bbls of 9.5 ppg mud, did not bump plug. Shut in well with 420 psi trapped on casing at 1635 hrs. Wash down BJ cement lines/equip. Flush Diverter stack,clean up rig floor and mud pits. 5/27/12 install vetco grey 7" casing head and pickoffs,test pickoffs to 5000 psi for 10 mins. Good test. 5/28/12 prepare to pick up BHA#2 5/29/12 drill up 7" wiper plug and firm cement to 1936'. Drill from 1936'-2086' 5/30/12 Drill from 1936'-2126' R/U BJ cement equip.for Formation LOT, Conduct LOT: MASP= 600 psi = 15.1 ppg EMW, R/D BJ Wash down to 2126', Drill from 2126'-2296'. 5/31/12 drill from 2296'-2640'. Survey=4 deg (9 tis" 6/1/12 drill from 2610'-2635' Note 30'change in drilled depth to 2610' with bit#2 and change in previous survey depth to 2554'. 6/2/12 drill from 2635'-3030' survey=5.5 deg 6/3/12 drill from 3030'-3310' 6/4/12 drill from 3310'-3490', POH for BHA change and BOP test. 6/5/12 back reaming, monitor well, POH to BHA, lay down BHA, prepare test BOP. 6/6/12 BOP test. RIH to 2826' drill from 3494'-3576' Page 1 of 7 • • Cook Inlet Energy OTTER #1 Operations Summary 6/7/12 Continue drilling with Bit#3. CBU, survey=8.25 deg. Drill from 4145'-4147' 6/8/12 drill from 4147'-4155'. RIH from 7" shoe, work pipe. 6/9/12 drill from 4255'-4685' CBU, prep for short trip, begin POH 6/10/12 Cont POH,wash/ream from 4563'-4683'. Drill from 4683'-4897' encountered hard coals. 6/11/12 drill from 4897-5193' CBU, short trip,work stuck string 6/12/12 RIH from 4203'-4773',wash and ream, drill from 5195'-5250, cric and condition mud and hole. POH to eline 6/13/12 POH and backreaming, 6/14/12 Pump high vis sweep, work pipe, free pipe,wash and backream, circulate 6/15/12 POH, RU e line loggers, test BOP 6/16/12 finish BOP test, RUH with slick tool string. Rig down e line, strap new BHA, RIH 6/17/12 RIH to 5138' wash, ream, work tight hole. 6/18/12 RIH reaming to BTM. Drilling from 5250'-5600' 6/19/12 drilling from 5600'-5686', CBU, POH, Rig service at shoe, RIH to 5058' • 6/20/12 wash and ream from 5058'-5686', RIH to bottom, CBU, short trip, CBU and pump sweep, POH for e log 6/21/12 POH, lay down BHA, RUN E LINE LOGS. GR, SP, MICRO, INDUCTION, DENSITY& NEUTRON. COULD NOT LOG LOWER THAN 5448'. STICKING. Service Rig,Test BOP 6/22/12 test BOP, RD from BOP test, RU to RUN 4.5 LTC 11.6# L-80 Casing. RUN CASING TO 5640'. ONE AREA TO WORK THROUGH AT 5450'. RAN 80' BAKER LOCKED SHOE TRACK, 135 JOINTS CASING CENTRAILIZED AS PER PROGRAM. MU CIRCULATING HEAD, RECIPROCATE PIPE. 72K UP WT,42K DOWN, CIRCULATE AT 140 GPM AT UP TO 600 PSI. 96 UNITS MAXIMUN GAS AT BTMS UP. RETURNS WERE AIRED UP DURING FIRST CIRCULATION.VERY LITTLE CUTTINGS. CUT RATE BACK TO 125 GPM WHEN SHOWING SOME LOSSES. HAULED OFF160 BBLS MUD. 6/23/12 RIG UP STEEL HOSES. PRESSURE TEST 300-3500 PSI. DROP BOTTOM PLUG. PUMP OUT PLUG -- WITH 2 BBL WATER. LOAD TOP PLUG WITH FLAG. MIX& PUMP SEAL BOND SPACER AT 11 PPG. MIX& 2 CyN PUMP 67 BBL 13.5 PPG CEMENT. DROP TOP PLUG. DISPLACE WITH CASING VOLUME PLUS HALF OF SHOE TRACK VOLUME. DID NOT BUMP PLUG. STOP PUMP. BLEED 1/4 TO 1/2 BBL BACK TO TANKS. ( Cy)- CHECK FLOATS- HOLDING. DISPLACED WITH FRESH WATER. RECIPRACATED PIPE THROUGHOUT THE > Page 2 of 7 1, Cook Inlet Energy OTTER #1 Operations Summary JOB. SET CASING SLIPS IN WELL HEAD WITH 40K LBS ON THEM. LIFT BOP STACK. MAKE ROUGH CUT ON 4.5" CASING STUB. SET STACK BACK DOWN. LD LANDING JOINT. ND BOP. LOAD OUT EXCESS CASING, DRILL PIPE AND BHA. CLEAR YARD TO NIPPLE DOWN. NIPPLE DOWN BOP. MAKE FINISH CUT ON 4.5" CASING STUB. SET IN & MU TUBING HEAD.TEST HEAD TO 3000 PSI. 6/24/12 Rig Service, clean pits, NU BOP,function test controls, RU expro E line run 3.64" Gauge ring, tag at 5478' POH. Start bond log 6/25/12 Run Cement Bond log up from 5475'. Rig down.Test BOP, Pressuer test casing to 3000 psi. zero loss,good test.Test Annular. Good test. NU flow nipple and trip tank lines. RD from BOP test. Mix prine to 9.5 ppg. Rack and strap 2 3/8" tubing. 6/26/12 prepare for well testing. 6/27/12 prepare for well testing 6/28/12 prepare for clean out run, MU mill, scraper, BHA. RIH. RU circulating triplex pump. Condition mud. RIH tag at 5480' drillers depth, displace with brine. Pumped sweet. Build volume. Circulate filtering brine. 6/29/12 Circulate hole filtering brine, POH with mill, scraper, and tubing. Prepare for wireline operations. NU shooting flange on top of annular preventor. 6/30/12 wait on wire line crew. Prepare for well testing. 7/1/12 wait on crew.Test BOP, rig up expro, loading perforation guns. 7/2/12 finish rigging up expro lubricator.Test to 2000 psi. PERFORATE 5166'TO 5173'.WELL STATIC AND ALL SHOTS FIRED. PERFORATE 5124'TO 5144'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 5104'TO 5124'. WELL STATIC AND ALL SHOTS FIRED. 7/3/12 PERFORATE 5094'TO 5104'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 5014'TO 5018'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4986'TO 4994'.WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4770'TO 4773'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4715'TO 4725'.WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4710'TO 4715'. WELL STATIC AND ALL SHOTS FIRED. LAY DOWN WIRE LINE CREW FOR THE NIGHT. MONITOR WELL. 7/4/12 PERFORATE 4489"TO 4492'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4403'TO 4406'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4270'TO 4274'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 4240'TO 4248'.WELL STATIC AND ALL SHOTS FIRED. PERFORATE 3960' TO 3964'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 3916'TO 3920'. WELL STATIC AND ALL SHOTS FIRED. 7/5/12 PERFORATE 3800"TO 3804'. WELL STATIC AND ALL SHOTS FIRED. PERFORATE 3768'TO 3770' WELL STATIC AND ALL SHOTS FIRED PERFORATE 3737'TO 3739'WELL STATIC AND ALL SHOTS FIRED Page 3 of 7 • Cook Inlet Energy • OTTER #1 Operations Summary PERFORATE 3706'TO 3714' WELL ON SLIGHT VACCUM FOR LESS THAN 2 MINUTES BECOMING STATIC RIH to 4590', POH with 3.80" Gauge Ring/Junk Basket Assy.On E-line,slight bobble at 3615' Pick up Weatherford Arrowdrill "Permanent" Packer Completion Assy: WLEG/pump out plug with set screws set at 3400 psi, (each pin =485 psi x 7 pins), dressed with aluminum plug, 1-Jt. 2 3/8" tubing, 1.87"XN nipple with 1.79" no go, 3-Jts 2 3/8" tubing,4 1/2:" Arrowdrill packer with seal receptacle PJSM, with r, Expro Reps, IDA and CIE reps present to discuss all communication's silence while making up Expro "Fireing Head"onto Packer Assy. Make up Fireing Head and RIH to 4570', pull up to 4551' (top of packer 1 ",f' locator), corralate depth and set packer,wait 10 minutes, POH slowly. Clear indication of Fireing of °i Head and weight change of 550 lbs, POH, confirmed tool set properly Rig down Expro, nipple up flow nipple and flowlines. PULL WEAR RING. Organize rig floor to pick up completion tubing assy. 7/6/12 Begin picking up, rabbiting and RIH with 2 3/8" Completion Assy as per Weatherford Completion Tech.tag Arrowdrill packer at 4551' space out, make up pups, M/U tubing hanger with 1/4" SST Methanal injection line, pressure test penetration thru hanger to 5000 psi for 15 mins. (Good Test). Land Seal assy w/6K lbs compression,test to 100 psi down tubing to confirm Seal assy is stung into Permanent Pkr. (Good Test).Apply 1/4 turn to right set middle Mech. packer(AS-1X), worked string up/ down to transfer weight confirm with 8K lbs on Packer. Run in tbg hanger lock down screws, pressure up down tubing to set HRP(Hydraulic Set Packer)observed packer shift/setting at 1700 psi, continue up to 2500 psi to set packer completely. Continue pressureing up to release pump out plug, observed t lv plug release at 2800 psi =est. 600 psi under set screw rating. Rig up and pressure test 2 3/8" x 41/7" x top of HPR packer to 1500 psi, hold on pressure chart for 15 mins. (Good Test). Remove landing joint, Vetco Gray rep installed BPV into tubing hanger Begin nippling down BOPE 7/7/12 Continue nippling down Circle "T" 11" BOP stack, clean up components,grease up API rings and store properly Prep top of tbg. Hanger spool flange to receive the Production Tree,Vetco Gray rep dressed bottom of tree. Nipple up tree,test hanger outer, neck seals&SST injection line penetration to 5000 psi 15 mins, (Good Test).Test Tree body and valves to 5000 psi for 15 mins, (Good Test)w/2 way check installed. Remove 2 way check valve. Install valve & burst SST injection line disk 6500 psi. Begin removing all rental tools, subs from rig floor before removing cat walk and pipe racks. Organize yard and inventory BOP equip, prep all BOPE bolts/ nuts and store in Circle "T" binds. Wire brush and lubricate all Test Separator connections, prep test equip for r/u Grade/level Test equipment area, begin installation of flow line from Production tree wing valve manual choke to separator, make up 6" flowlines between test components, move all essential rig components/material from behind rig so not to unaccessable once test equipment is in place. 7/8/12 setting up test equipment. Rig up 2nd Pollard unit, RIH with 1.60" and 1.66" swedges, beat down minimally with both and able to pass,continued down hole to check other tight spots, no tight spots observed. POH. RIH with 1.75" beat down for est.45 minutes and could not pass POH and rig aside for the night. Secure and monitor well. Page 4 of 7 • Cook Inlet Ener by • OTTER #1 Operations Summary 7/9/12 Rig up Pollard Wireline, RIH with 1.75" swedge tool, hammer thru tight spot at 3264'. Continue RIH to "XN" nipple, no other tight spots POH, RIH with 1.80" swedge, work tool thru tight spot, RIH to "XN" nipple POH RIH with 1.85" swedge work thru tight spot, RIH to "XN" nipple, POH RIH with 1.90" swedge work thru tight spot, spend time dressing tight spot, RIH to top of sliding sleeve at 3502' RIH with 2 3/8" sliding sleeve shifting tool, work tool and open both Sliding Sleeves at 3669' and 4214', POH. Note: top sliding sleeve at 3502' remains"Closed'. Rig down and aside, secure well for the night and monitor Wellhead Pressure L-7N-1!\. 7/10/12 Ignite Test Separator Burner w/new Bottle of Propane, Check WHP= 0 psi, Rig up PWS and begin Swabbing 2 3/8" completion string found fluid level at 1350' at start, swab down to 4400'finding fluid level at average = 3700' toward end of the day. Rig up and RIH with 2 3/8" Sliding Sleeve Shifting Tool, confirm sleeves at 3669' and 4214' are both open, POH 7/11/12 Monitor wellhead pressure, drop 2 soap sticks at 0630 hrs Continue swabbing, drop soap stick at 1900 hrs while reheading tool string, continue swabbing Rig Pollard Wireline lubricator to the side, drop soap stick, secure well for the night, monitoring Well head pressure 7/12/12 Monitor wellhead pressure, drop 2 soap sticks at 0630 hrs Check WHP= 0 psi, Rig up PWS and began Swabbing 2 3/8" completion string. Found fluid level at 4170', swab down to 4500' RIH with shifting tool and closed sliding Sleeve at 4214', POH Continue swabbing Drop 1 soap stick, rehead lubricator, install new cups Continue swabbing POH, wait for well to produce water for Chloride sampling RIH and continue swabbing, POH and retrieve Chloride sample Rig down to the side, secure well, monitor night cap pressure gauge 7/13/12 Check WHP =0 psi, Rig up PWS and RIH to Swab 2 3/8" completion string. Found fluid level at 4650', WLEG =4680', POH Rig aside, open and monitor 2" hose from flow "T" to tank while PWS drove to Beluga to round up the spooler and wireline reel with 25,000' of new wire. Plan to change out wire drum tomorrow while Perforating and or Nitrogen job RIH with 1.75' bailer to tag bottom and grab sample of what bottom is. Ran out of wire on drum at 5080' -4710' = 370' below top shot on Perf zone at 4710' to 5173' = 93' short of bottom perf and 395' short of PBTD at 5475', POH RIH w/ 1.72" Blind Box to 5000', did not see fluid level. Ran Blind box due to it's flat bottom and best tool for confirming fluid level, POH Rig PWS aside. Drop 1 soap stick. Secure well, monitor Pres. Gauge on PWS lubricator 7/14/12 Monitor wellhead pressure Check WHP =0 psi, Rig up PWS and RIH w/1.72" blind box, did not find fluid level at 5030',WLEG =4680', POH RIH w/2 3/8" "J" latch sliding sleeve shifting tool, confirm all 3 sleeves are closed, POH and rig down off Prod.Tree Rig down off of Production tree, secure well and monitor well pressure Begin setting and rigging up BJ Services Nitrogen pump and transport trailer, confer with town on procedure, pressure test lines to 4000 psi, (Good Test). Begin pumping N2 down 2 3/8" completion string, monitoring annulus, stop pumps at 1800 psi, 1900 psi, 2000 psi, 2500 psi, 3000 psi Begin pumping N2 down 2 3/8" completion string, monitoring annulus, stop pumps at 1800 psi, 1900 psi, 2000 psi, 2500 psi, 3000 psi and 3500 psi with 5 min shut in at each interval. Observed hesitation at Page 5 of 7 4110 • Cook Inlet Energy OTTER #1 Operations Summary 2700 psi, continue up to 3000 psi, bled off to 2890 psi in 10 minutes (all other intervals at lower pressure held solid, straight lines on chart). Pressure up to 3500 psi as we were pumping pressure dropped from 3480 psi to 3430 psi then continued up to 3500 psi bled to 3350 psi in 30 mins. Confer with town Bleed off thru test separator equipment to 2000 psi at 1.5 mmcf/day flow rate, PTS Tech monitoring/documenting flow stat's Repeat pres. intervals as above: did not see hesitation at 2700 psi or 3480 psi. At the 30 min. mark bled from 3500 psi pressure bled down to 3370 psi 20 psi slower than 1st test. Confer with town. Bleed off thru test separator equipment to 1000 psi at 1 mmcf/day flow rate, PTS Tech monitoring/documenting flow stat's Shut in well from Separator and monitor wellhead pressure while confering with town, wellhead pressure maintained at 1000 psi Repeat pres. Intervals as above: at 2500 psi interval, pressure bled from 2500 psi to 2390 psi at 5 mins. Did not observe hesitation at any other intervals. At 3000 psi lost 40 psi at the 5 minute stop. At 3500 psi bled to 3370 psi after 30 mins. Same as last cycle Confer with town, Bleed off lines and rig down BJ Services hard lines from top of tree, make up tree cap w/pres. Gauge Begin bleeding down well at 3250 psi with 1.0 mmcf/day flow rat thru Test Separator, PTS Tech monitor and documenting flow stat's 7/15/12 Monitor wellhead pressure Rig up PWS and RIH with 1.72" Blind box to 5000' no fluid level, POH Pump 5 bbls of 9.5 ppg KCL fluid to well, RIH with 1.72" blind box to 5000' no fluid, POH Pump additional 5 bbls of KCL water, (from 5000' to WLEG at 4680' =4.8 bbls) RIH with blind box tagged fluid at 1565', confirm w/ multiple runs, stay in the well close to 1565' and confer with town. Double check fluid level before POH, appears fluid level may have risen, POH. Make up and RIH with Sliding Sleeve shifting tool, confirm that top sleeve is closed and not partially open allowing annulus water to leak into 2 3/8" tubing. Confirmed that sliding sleeve is closed, POH RIH & begin swabbing f/ 1565' t/4170', while Expro finished building 40' guns. Rig down/ move PWS unit for Expro to rig up on well Rig up Expro, held a PJSM with all personnel on location, primarily shutting off phones, radios, Satelite and cell phones periodically thru out the night/morning. Pressure test BJ Services Nitrogen flow lines and Expro lubricator to 3000 psi, (Good Test). Open well RIH 200',turn on communications, continue RIH w/ 10' 1 11/16" 6 shots/ft strip guns, could not pass top sliding sleeve at 3502', POH, did not pressure up well w/ BJ N2. Descion made to lay down gun #1, Secure well for the night. Wand Expro crews depart location back to camp. 7/16/12 Monitor wellhead pressure Rig up Expro select strip gun that has straight leading end, PJSM w/ all on location, radio/communication's shut off Wire up the detonator, make up and test lubricator and BJ Services N2 lines to 3000 psi, (Good Test). Open well and RIH (run #1) with 1 11/16" 6 spf 10' strip guns to 5150', log up several passes, send CCL and GR logs to town for depth corralation/ confirmation. Made shot#1 with 650 psi N2 from 5118'to 5108', POH to above "XN" nipple. Observe WHP for 20 mins. WHP start: 640 psi dropped to 630 psi and held static. POH w/ Perf Gun Run #1, at 200'from surface shut down all communications All shots fired, lay down spent guns and pick up, wire detonator on 10' Perf gun assy#2, equalize lubricator with well N2 pressure RIH (run#2)to 5381', log up several passes, drop WHP from 650 psi to 400 psi, send CCL/GR logs to town for correlation/confirm. Made shot#2 with 400 psi N2 from 5279' to 5269', POH 20', observed WHP for 20 mins. 400 psi Page 6 of 7 Cook Inlet Energy OTTER #1 Operations Summary dropped to 380 psi and held static POH with Perf Gun Run #2, at 200' from surface shut down all communications All shots fired, lay down spent guns and pick up, wire detonator on 10' Perf gun assy #3, equalize lubricator with well N2 pressure RIH (run#3)to 5200', log up several passes, drop WHP from 380 psi to 200 psi, send CCL/GR logs to town for correlation/confirm. Made shot#3 with 200 psi N2 from 5150'to 5140', POH 20', observed WHP for 20 mins. 200 psi dropped to 190 psi and held static POH with Perf Gun Run #3,at 200' from surface shut down all communications All shots fired, lay down spent guns and pick up, wire detonator on 10' Perf gun assy#4, equalize lubricator with well N2 pressure 7/17/12 Continue laying down spent guns and pick up, wire detonator on 10' Perf gun assy#4, equalize lubricator with well N2 pressure. RIH (run #4)to 5250', log up several passes, drop WHP f/ 190 psi to 150 psi, send CCL/GR to town for correlation/confirmation Made shot#4 w/ 150 psi N2 f/5208' t/5198', POH 20', observe WHP for 20 mins. f/ 150 t/ 120 psi and held static. POH w/ perf gun run #4, at 200' shut down all communications All guns fired, lay down Gun assy.#4 (Final Run) Bled N2 thru test separator at 130 psi at .750 mmcf/day flow rate, went to zero in 5 mins, no fluid to surface, 100 LEL's at end of flow went to zero LEL's in 15 mins. Monitor well open to tank for lhour, checking huff/puffing and LEL's Secure/shut in well, monitor WHP Zero psi, open well, check LEL's= 85, CO = 20 ppm, shut in well continue to monitor WHP Rig up Pollard Wireline, RIH with 1.85" swedge,tag fluid level at 3405', POH Rig down unit and lubricator Crew and Unit departed for Beluga, plane scheduled for Pollard crew at 1900 hrs Secure well and monitor well head pressure 7/18/12-7/30/12 Monitor wellhead pressure Page 7 of 7 • • O 0 U = a O ,cs o a) o x 0 3 cr3 %;:: 0 al z x E S <I.) 0 o o x a) 1 •° °-' C) c� z a> S z W o .0 a> 0 U C.' = N 0 w ; Z Q r. > U x Z c4 a w 0Lu 0° N A 0 ....._ cl z g4 � = 0 o CI ,_;44 O w U ) U � •0 0 rn Crt /)0000 C7 0 c d Z x �; � c4 a b Z o . b o 00 c/a r c 4 2O N �" 0 M c N A c °oma 0 z U vi ••11,1 z A o " a: v) U r „, 0 0 • • w 3333 33333 33333 333 O V) O IN •-. VD O O m 00 00 en to N V) O\ O O OT O 'I' V) V) VD .-. O .-+ 00 00 00 . . . (Ni . . . . . . . . . . . . . , � 0 �-- en s --, cl V) 01 m 00 m O, m � O m v) •-a •-- NNN m M in 'r 'O 1/4.r) v) 0 ' N N� N R'i0W z zzzz zzzzz zzzzz zzz O0o 0, 00 'nm 00 -, 000 ' (...., v) CD O00 000 z O ,tNeO, TrC --- NN O\ 000N00 N00 O r, tin V) -+ vCNvi, •--- V) - 6d a; MN •-. ,-. NNcc) e � qcr V) VOVOVO N000T H O 0, VD .. O in 0, n N 00 m T. Tt v) O1 V) O O Ti mMm N — .. O 00000 — N 4 eN N Cl N N N N N N N N N N N N N N 1 7i a en en en en en en m en en en en en en en en en en ��i-----0 Q 0 (G 00 \O O\ 01 .� N O N N N \D OT 00 - O, 00 N y O d .-, MDNC N4 Nm C NNm6 vOT' m UHw H •-- — Nm7r7rin V) ON000r, Q, O -+ — — on °' A d > H en >~ Uxa O a 0 C en en -, 00 V) .1' V) 00 CA kr. V) .. 00 m O C�-7y O, ON00N � V MN •--� 000VO N 0VON O r-i a y O R 01 01 04 01 01 0; 01 01 0\ 00 00 00 00 00 N N [� N d cr, O^ O1 O1 C Or 0\ 01 O1 O\ O1 O1 OT O1 O1 CT O1 .4 Q+/ ww U .-. m WI 0N .--� m MI N ON — m v In qO N 00 0 W A _ Q! ^-' ,--i ,� .-+ .-, NNNN N N N i , N a w mAO H m U. '" Cl) b W �y O 0 N N Vn V m 7r •--- OC to N vO en 0 •-. In VD •-- O as O () v') m ,, O OO -. 00 OmmmN VD 000 '' C7W ) o o Z 6000 00000 00000 0 .� 0 C7 Cl) Qv 0 d d Ww 04 D 00 4 0Z x H H .-- H O O d r- ,r cr, N V) 00 m N N N 4/1 ^- V) VD d' •--- O xi 4 00C Cl ,. ' 7r O, h .r, Vl '.DmcN 00C N O � O d MN Ooo6l� 1O � O4M V) 600M Z" O O H � NNNN N � N - NNNN mmv A d m m m m m en en en en en en en en en en en m 44 HU A uo O H a Z U —1 0 CD ..,:C ,--i a O Q cn ,r 00 00 7r V) (n O O en N V) - O N \O \O 3 On () cu O .�, N 0 VD OT O O O 00 N 00 C. VO N WI N N O r- >>: �, m ""' 4 'ti O I — .- — N N N ,-- r., .--, N en M (Ti Ti vi O � w z ° rxN � A w w 5 HA 51 al b; W 0 II 0000 00000 00000 000 p, x o d 0 0 o O O O O 0 O O O O O O O 0 O W 0 E H i d 0 W 0 0 0 0 0 0 0 0 6 6 6 6 6 6 0 6 0 o � III* 42, ,n W 0000 00000 00000 000 0 y � Z d W W N � V000 0Nv '.000 0N � V) VD N00C\ O V W A vl N N N N N N N N UW3ti odC7 • • • • 3333333 33333 33333 33333 3 m , O l N O o0 N 00 Q, ON N a1 M O N N - N 00 v'1 ,.O M O ,O O N m ,0 WS d• M m N ^0 O N C/) Q\ M d• v'1 v1 v1 v'1 d' d' M N O Q1 00 N �D 4 M N E-0 ., Z O N N w OUO zZ zzzzz ZZZZZ ZZZZZ 4zz44 z - N .O v'1 00 N OS 00 s.O N 00 d• a, --. O .O 00 N O Z O l� ' ---0 .1: a 0 v'1 M 4n 00 Q1 S O Q1 00 a, -- M M M d: O S Q\ n NM wiQ, d' O N00d' Od- CO, d- v7O tri Okr; O --- O --, N M (n N 00 O ---- M 'f '.O N a, •-0 N d- 1n N 00 O ---- M . . . . . N N N N N N N m m M M M M d• d• d- Z E., WS S000 ,-, 0 SN SS S kn m -, 00 d: O in .-, 1n Q1 N vi N co; - 4 v:5 06 Qi •-+ N mkr; '.O N 4 k00 00 Q; O O - - — 'L"YiJ bA N N N M M M M M d d' V d- V d- d- 1n rn 1n mm M M m M m M M m M M M m M M M M M M M M M (/) C) (1 O DD � O d; N m M -� �O l� Q1 M QN v) O d: �--� O S v) 00 00 M Z M t v7 00 Nv6 —, k.664 N N N '.0 N O v1 W Nm d• v'1 N 00 O m d' '.O N WO --+ M d- '0 N Q, O N M UE-; L$2, --, * N N N N N N N M M M M m m r1 d• d• d• Q s, Q' 00N N ' d- Q, 'C M M N 00 ' d- Q1 N .-0 O� d' �O O v1 N Ux+ 'O O N N .--i 00 in N Q, d_ M N O Q1 N '.O - m --- O 00 '.O H y '46 '.1 rn O Lei 4 cn ' O Q; N v6 v'1 4 m N6 Q; 00 N v6 vi 4 N .•, H O-i 0Q1 Orn Q1 00 0000 00 00 00 00 00 N N N N N N N N .. W '"' CAC) N M �t in N 0001 O N M d' m N 00 Q� O -0 U W i Nm m M M M M M m M M d' d' - d' d' d d' d' d- v) vs) a) s.. Q os W .- O N 00d- v-) 00 .1- 00 N 0 N N N ' N --, N 'r N 1n d' --+ Q1 Qs. (. 40) (:)>O N '.O r 00 O O ,- N r1 N N O O m -, --� m -- O --' d T Q W O 66 66666 OOOOO 66666 OOOOO O Q..7 cn cip Q Q U ,, N Q i z -(..7,— H in ,.0 --- Md -- • a .n d• - 0mN NN0d• 00 Q, N '.Od• 00 0 d. Q\ N -0N 00 M d' 0 N O -, ^0 M N d. Q� '.O N M 'O '.O O N� N Q\ M \O 00 O O -0 N M M M M M Vi . M M d' d' M Nz b d. d. _ _ , P4 = N mm M M m Q H O• H U ,-- r----, .71- min '- 00 O 00 M O O N d• ' d• O v) 3 U eM Q1 N m oo M M M -- O l� d: \O N oo l- \p v) 00 N N N N m Z 00 00 a 0; a; a; a; 00 00 00 00 00 00 00 00 00 00 00 00 Q Z• Or4N W t WO lQ Z p 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 x o 0 0 0 0 0 0 00000 00000 00000 0 W o c -' 15 0 0 66666 0 0 0 0 0 66666 0 0 0 0 0 0 O ti Z Q W w o--, N M d- v1 '.O N 00 a 0 .-, N m d vl ' N 00 Q\ 0 --- N O .� WW" [� mm M M M M M M M M df d' .. d. d. d. d• d. d. d. kn V'1 V'1 U ,113 ,_9 • 40 • • & & & kqk / \ 2 $ $ ¥ \ 2 \ b xzx fqQ min ¥ 74 \ nNOO / \ \ / 0 ¢ @ - - c mak / / / & $ \ / / � \ I 2 Q c 4 $ & / 2 o / � ) kdK amu ® mr � . . . \ 4Q www u > \ e \ g >0 \ o � a0knknhi g om7 R $ ee - e \ g < \b \ _. _- F- _ o ¢ OQg / 2 \ wao / Wi N 9 / Q / O \ >. / � 4 \ \ \ \ ( @ I / - - Z P4 / ( ® 0S 0 \ \ d .. Q \ / .. $ 0 0 0 .2 § / l \ \ \ \ / q ] / jQ rvr % U / / g I \ 0 • • • 0 N r r O C) a) N O t b O O O O Q C6 O O Er) O O O CO O N N N N N ~ w c a) O d J - Eo OO OD 00 00 00 2 U) U) U) U) u) U) ar d MO W c To 0 f V CO in in r iV & co It C r r - r - r rt U C O C/) 7. .>> O 'N 9 .0- in 4) CD X e- a M Q U N4-,,„ N Z 2 O J W <'-t- 10 rn 0 w LL ao z c 4' P < 0 o o >- :? +=, V) CA C.) C (6 It .` d N 4") N G) N C1 N CD O o co c it itTO o a)) m y O co Nen as 8 Z a N N as O O 0Q- U U • 0)(n `d o t p2 Q. � v O F- < Q a) E • y t co I 1 E y3 •U -c) E 0 O O> Ti O O Oc c u) c N -p b(7)CO 0 A' *-5 bL cn o > > N O` 7 a N 3 c a v cco N N N N N N N N O O O O O O 0 N N N N N N raa In r r a- J6 CCD CO CCD CCD CCOO CO ECC CCCC O "C 0 0'C "C'C L c0 o co co Co CO CO o = 2 2 2 2 2 0 0 i • Avg. Lgth. RIG# #DIV/0! WELL# TBG SIZE Jts.on Rack TBG WT 0 TBG THREAD TBG GRADE Ft.on Rack DATE TUBING SUMMARY RIG 0.00 Date 1/0/1900 WELL# 0.00 TUBING 0 0.00 0.00 TBG WT. 0 JTS RAN 0KB TO BF 0.00 FT ON RACK FT RAN ITEM Description includes: SIZE,TYPE,CONNECTION (JTS#-#) ID OD LENGTH TOP BOTTOM pop .50 4679.50 4680.00 jt 1 29.50 4650.00 4679.50 xn 1.25 4648.75 4650.00 jt2 31.63 4617.12 4648.75 3 31.65 4585.47 4617.12 4 31.47 4554.00 4585.47 arrowdrill 2.51 4551.49 4554.00 locator .52 4550.97 4551.49 jt5 31.56 4519.41 4550.97 31.59 4487.82 4519.41 29.73 4458.09 4487.82 31.51 4426.58 4458.09 31.60 4394.98 4426.58 10 31.50 4363.48 4394.98 31.56 4331.92 4363.48 29.44 4302.48 4331.92 31.62 4270.86 4302.48 31.54 4239.32 4270.86 15 31.47 4207.85 4239.32 sliding sleeve 2.76 4205.09 4207.85 16 31.58 4173.51 4205.09 17 31.56 4141.95 4173.51 18 31.65 4110.30 4141.95 AS-1X 6.20 4104.10 4110.30 19 31.57 4072.53 4104.10 20 31.66 4040.87 4072.53 31.67 4009.20 4040.87 31.62 3977.58 4009.20 31.59 3945.99 3977.58 31.14 3914.85 3945.99 25 31.57 3883.28 3914.85 31.52 3851.76 3883.28 31.49 3820.27 3851.76 3.58 3816.69 3820.27 31.63 3785.06 3816.69 30 31.52 3753.54 3785.06 31.57 3721.97 3753.54 • • ID OD LENGTH TOP BOTTOM 32 31.68 3690.29 3721.97 sliding sleeve 2.76 3687.53 3690.29 33 31.63 3655.90 3687.53 34 31.57 3624.33 3655.90 35 31.59 3592.74 3624.33 31.60 3561.14 3592.74 HRP 6.00 3555.14 3561.14 37 31.57 3523.57 3555.14 sliding sleeve 2.76 3520.81 3523.57 38 31.67 3489.14 3520.81 29.75 3459.39 3489.14 40 31.60 3427.79 3459.39 31.53 3396.26 3427.79 31.75 3364.51 3396.26 31.50 3333.01 3364.51 31.61 3301.40 3333.01 45 31.57 3269.83 3301.40 31.58 3238.25 3269.83 31.70 3206.55 3238.25 31.56 3174.99 3206.55 31.63 3143.36 3174.99 50 31.67 3111.69 3143.36 31.59 3080.10 3111.69 31.63 3048.47 3080.10 31.54 3016.93 3048.47 31.58 2985.35 3016.93 55 31.61 2953.74 2985.35 31.63 2922.11 2953.74 31.57 2890.54 2922.11 31.76 2858.78 2890.54 31.61 2827.17 2858.78 60 31.56 2795.61 2827.17 31.50 2764.11 2795.61 31.55 2732.56 2764.11 31.55 2701.01 2732.56 31.56 2669.45 2701.01 65 31.63 2637.82 2669.45 66 31.62 2606.20 2637.82 injection mandrel 7.00 2599.20 2606.20 67 31.59 2567.61 2599.20 31.65 2535.96 2567.61 31.61 2504.35 2535.96 70 31.64 2472.71 2504.35 31.60 2441.11 2472.71 31.60 2409.51 2441.11 31.63 2377.88 2409.51 31.52 2346.36 2377.88 75 31.54 2314.82 2346.36 31.61 2283.21 2314.82 31.64 2251.57 2283.21 31.57 2220.00 2251.57 31.64 2188.36 2220.00 80 31.62 2156.74 2188.36 31.55 2125.19 2156.74 31.62 2093.57 2125.19 31.53 2062.04 2093.57 31.64 2030.40 2062.04 85 31.55 1998.85 2030.40 • • • ID OD LENGTH TOP BOTTOM 31.64 1967.21 1998.85 31.64 1935.57 1967.21 31.65 1903.92 1935.57 31.66 1872.26 1903.92 90 31.60 1840.66 1872.26 31.66 1809.00 1840.66 31.54 1777.46 1809.00 31.55 1745.91 1777.46 31.61 1714.30 1745.91 95 31.64 1682.66 1714.30 31.57 1651.09 1682.66 31.56 1619.53 1651.09 29.58 1589.95 1619.53 31.59 1558.36 1589.95 100 31.56 1526.80 1558.36 31.56 1495.24 1526.80 I ' • , I ! • ! I • ! ! . ! 1 1 ! i • ' 1 I I , ' . f 1 I - ; I : , . , 1 [ ! i I . ! ' • : I I ' ' ! • . 1 . . , 1 1 1 1 , { ' i I ! , . ! g 1 1 l 1 1 1 ' 1 : I 1 t . 1 r 0• I I , III 1 C i 1 0 a f i .1 1 S , l 1 { 1 IC 1 I 1 1 •• 1 I . c , . N 1 13 ••rrrwo ' ' ! • ' :NJ cu ! 1 4 ro – E ii .....• 1 c , I I I 0000 ; 2 ' ; ! l...J-- - ' — 1 ! i i , 1 t Ca • ir. a , I .... a 1 . , 1 , , ' . 0 : 1 Z". 1 1 E C•1 C.,„.." , .... ' ' o "r• 1 i 0 1 • i I , c E cL. o I o ; i I z 0 1.. . I : I o c o . 15 ; I 1•• 6 1 122 3 ..... , ..,— I 14 - ..; D. 0 7 . ts .0 .- e-- (4.9 C co .0 ' .c 7 7 I CV u) O. _ . , , , 0 E = o I c 0 o —.I in al = o c a) c o 6 m w I_ o 4.• 0 _ a) i > ' .0 0 1 1.. .... a) a. ca — w 3 0 I— co .= 1 0 = 0 - 0 — 0i E > t Iii' C) = -. 17) 0 e i c 4.0 0 = C 0 ..... .... , 0; GI 44 .0 0 El ''' 0 u) ....., . C 0 CCA s .) ..9. — , . 0 1 c — 13 — -c c' 0 1 n "ItC 0 a) c w• > ...-, o , --. 0 ILI IU) 0 i e••• i i 0) co co 0 a 0 at E ./3 cr) -v 2 I i o o a) o ..„ 0 -0 . o o >, gi 0) c C) -ro 0 ...., 01 —, e w 0 2 > _, , co = m .o .,-, ._ = ,2 0 c_3) ...., .... w z II , 0 = c . c .. = .x u) c sL., c ci,) , -, ° 1:3 ri3 C X 0 C (.9 0 • c 0 0 co 0 1:1 0. 1. MI .c MI 5 M .4.. 0 CIIII 0 w > M cr) C04 C - m < z `i 6 I i 1 t o .c o .c a) ••••• .... L• ..0 Z C o U 17) 6 V) a cv cr) ,-r) (I) • 0 2 m rY) c 0 lc i 0 — cr) C 0 .... 16 O') 0 t5 '5) -0 0 m 8 3 0, n. 34:21- 3 , 3 ° ' e cEck- E ' L) o! cw ,-. .acci . 8 . .-- . s' m 0 mmEl. 6 1, _ .c _ =, 0 = .c .. 1 IZU (" Uggit ge-5 3t 11 -31(nomoomRo 0 to- om 0 -cE@) ,0 mo xl 0 0• I 0 (f) (1) CO . .(.1) = (1) 4) ED. F. I... 1..., ,J i il- -J -I,i_ -J -J -J -J -I 1 0 1... -J -Jf_i). -I -I -1 -J -I r..) .-J CC C o li 000'000 0 0 0 0 0:0 0 0 0'0 0 9 0 0 0'0I0 0 0 0 0000 0 0 0 0 0 0 009000:00000,000000100000]00000000000000 8- g 0o ii O a;,v• '.0O O ci:; , It) ii) Cr; a; cE!6 et; Ci eE Cd!iii r:.:. O 000 O U) t:i 0 000 i): 0 . "I a) I v.- 0000mlo 1.000MW14: IMON0071: MONe1004- 0N0efNM00 0 N, -a, o ct ,,c, 1— , :iii. ici, 46 ev, ,:d tid;eki tii ei iti. id ei •-• Ai ii i.i ci OS r- Ai C.'i 4 CD elc; .ir; id A: O 41: egi iii 4:::: ie.) ei; r 6 tg m.1 ).. ,.., .. 0 0 r r r r 0 0 r r C. 17. , 1 , Z ' ico 1 1a: 7,E'h — to:ite a) a) o o o o T'`' . . . . . I"' e- N N N NI CA N C‘I C•4 04 C%I PI r, rl el c., en et et et et e o 0 0 0 N- r r• r- r• r . . . . . r- m- e- r N- r .k- . . . . . . . . . . . . . . (X I ; r. r. r.. e-. r.. r- r. r- r. r.. N N. n 1,..N. .. n N. n. t.. n n. nnI••••••n. . . n. N. N. N. N. N. h. N. N. r. N.I a; I 1 0 0 000 000000 0 0 0 0 00000 000000000000000 0 tri0 1 I N N (NI N N F.N) C•4 CV F..:41 N. ik.-1 N -i'l Z,..1.. 'Xi N N .61 i'-',1 FNI- ev i'.1 i;71 04 N i:•71 Fq e4 ev >5= E 2 r r r r r r ,21. r r . . . . . . . . . . . . . , , , , , , , , , , , , , r 1 Li Ca ' me9R, (.40 ggR—F4 Al—ggA2ge9 ,94A 'AgRgRggR2c9gRgRRgRiggg1 x.-- z ! 0 0 An I- .• 0 •• , . 101 1;. c cv 13 11 , , , Z I • .S2 D u.(...) 0 6>a," : :, Nmvu., 01... c00, 0r N M e/ WWNWMO r'NMer IMWN. WCIOr NM ‘itil (DI 0 •:t1-- I 'r r r r . . . . . . NNNNNNNNNNMMMMMM MI (I H I N ' , . I ; , 1 ' , ' 1 I , I I I , I, ' 11 1. I I 1 1 I I , 1 I 1 i1 1 ' 0 I I . E 1 , . 1 A 1 cv 1 A I- H i 1 0 1 . , : 0 a) 0 1 N. 2 3 . )▪ — 0 z ) 0 91 0 .„ 3 c 2 .2 ea 4.- 0 11 1 4 0 c ... C 0 ft 42 E E 0 E N c I 't. N -•-• 0 I 4- , }. '1 1 0 a) 46 1 (f) > o.. u) 1 1 0 c (1) a a 0) 2 '32. CD [ :.-. io . L: .d ..... 2 c 0 z o .- -2 0 a) ea C. ....1 .-•• —• a. 0 L.0 V) 0. 0. .... ,..0 0 2, .c 0 i 0 0 2 0 — •(7, ,..., ,I 0 t N- V) IV 0 w o a) a N d) 0 -, t coo. .0 > N .1.. .,.. = U) 4.0 . 0 4, i= I 0 co — 4., `6d 0 0 0 0 . C C C V ra o o ...., ct ., o -o *- --4) . 0) > = 13 7 0 — c 0 1:5 0 0/ ..., 0 0 0 ../) -0 cu 4/) ..= To :a = o co 0 2 =1 0 W I 4"' • ‘..:-: c° < 0 0- .0 A., P -0 c0 0 la 0 to ...0 1 0 0 0 0 gn — ..., :§ 15 4-,z E a so o .0 1 17 a) .c 0 I O 0 ,,i- 4-. „, > = = 0 N I ii_ .... i_ . .7.) 0 0 TJ 0 0) U) -... co HO) P. .., . - €50) ....-' -1-. v) u. L.) co Pa, ..E cn .s co En rg En.'" ix .... .E ..... .E. .- .- 4-, _ 0 (...) 0 v) a. cnO. C4CC t :3 _. u- 7 1, ,0 0. 4 0 0,. 0. 0. 4 0 0, o 0, 0 s 0 c 0 0. 0 0. ,0 s 0 o 0 ,0 0,0 .0 0, 0, 0 0 .0 .0 0, .0 c) o o e) 0 0 0 0 000000 ORO 0 00. 0 0 0 00000 0 000 00000000 B C.0.* C. 4" I 6 6 Ai 0 6 6 6 6 0 1 6 6 •1`. 6 I) 0 0 r) 6 0 0 0 0 6 0 0 0 0 0 6 6 (0 to 6 tii 6 its 9 .4, 0 tO C . 0 0 , WMM0MrR000. 0rM r010 9. 96 1600MNr 0 ce 9, 1— ... e.i 6 ii.6 6 4.-• 5) 6 .4,- 6 6 .1 N N f1,1 44i i'; ei ..41 ,4- 6 50 (0 Ai U)' ID ?- 6 ,.- 44 00 4,4- .4- N yr tu •-• - .4- .4- r rNNN0 0 0 r r r r r r r r r0000r r r r rNN000 000 LUV. AS EI N 6 2 1 02'0 lSS v“,) 03 N AO • •ri CD E < rr r r r r r r r r r r r r r r r r . . . . . r r r r r r r r r r r r r s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s -8 N. E , 0 0 0 000000000 0000 000 000 0 0 0 0 0 00000 0 0 0 0 ° ' C'.4 C•INNi.,-4 ZqNNN (414 .i.71 .f,1 i'q .f7.1 "C'ZI (''.1 i;71NRI i;71 F.71 N >i 0 gi.'' r r r r r r r r r r r r r r r r r r r r r r .1 r r r r r r r r r r r 0 02 44 00 0 0 0 0 0 000 0 0 000 0 0 0 0 0 0 0 0 0 0 0000 0 0 0 010 0 0x i, Z V3 , t%) N N N N N N N N eV N N N N N Ai Ai Ai CNI 04 CV CNI e'4Nesiesieveve4c4cvev 0N NN N -x 1- t•••4 0 a) . l co 1- .. la •. $% -a 1 z2 z- E — ...• I - 1 16 Er 2 1.... 00 0 rNMV110401,. WM10 rNMIPW (J) 1... MMO rNMetW0, t... 4004 0 r N k . ,, ,, ,,, ,„,. ... ...„ , .... .. ... ... ..,. . . w . . . .. .„ . . . . . . . . . . . , _Ali • . , NIIIF „.,... li I I J 1 , . , 1 1 , 1 , , I ! , I , I I I , e4 I i N , EO i .o 009. o , -a u. ia.. a. ..... , c : o E E o (..) s.- 1, 0 ! I i , 1.. • 1 I 2. i 1 :, 0 . ! ' tu .... , in 1 :-c ' 1 , = d . A • 0 , : 2 •,_,-1 . • ..i i •- c, 1.f. -c I . • • so, I i= -..! ; o v 3 > ' ' 0 'M r / • 0 i .1... 0)• 'V 0 / 0 '' 1 0 I.1 C 0 < i 0 `C 0. 0 0 C ;1 .0 ,< 1 11 C '2 co 0, co = c [ a- c — „ tc su:t I kg) .0 ty 1 EQ In 1 I I c 1 •-.. I I CD W -"" 0 0; 7 ; = CO U)1 ' ... ICO a. O. ..1 0 0 0 i 4..,' 11 i 0 0 0 1 - ',5 • 9 4;1: 1 000 o s„ 0 rt° 1-I -41 iii ia u.19 0 * .o Q.,- F• C c w 0 " '1- 112; ; P. Li 0''''r•' 1 CO C14 a 1'i i i 07 iC i I 1 fl 1 csi°3 1: I i CI L) 1 i ,L.7 32 N.A... N. f:f1.... ....,:.4. P. e. e. .- 8 0 0;0 u)0 I, 'i R t& co 8 ZIO!G >= 0 2 ti ors Pi I t.1:cm 2 uj 01 f 1 I ri Ch off 1.•- • r 9, B rff en- f.2., • a • U E 76 II c �. Ii U I C — i ! d O O O`0�p V' O lb es) ' V) 1`, Ooi Ty T- N tD a N r N N a N N M a lj - i } I Q 1 E U 9 12 I 713 1 i Ir T O .___ !, N ', CO O O O ItCI N iI w O O O N t E 1, RA V a E ' g cw ta- oodao c •-)u. u. a a 0 1 E ' : o 0 0 a et CD O O 0 CD h t0 1 t V) a 1A r r r ' ' � w; tht; oa j 0 • O .- '+. T ❑ . 1 ° _ "0 '; 0 O =, o tl. I. I V I' H a H o f j 1 r O OI R o 0 0; 1 U; 0 0 of H E y IH v E T 2 0 I IN -� to.O O o o O O O O O iO+ r ' 1� �'0 0 0 0 000000: Q E L O O a '.0 0 0 0 0 0 0 LL 0 =1 a to a co et;a ie;o ti ti; ii;o co E =.o O O 0 0 O O o o r w m ,tr o O r N M e} to CD 1.. ti C Q'r O N O F ❑.O r e- ,. . . . . .^ r y O U'oF ~ :: ❑ n n n n n n h n 1: n E �!0 0 0 0 0 0 0 0 0 0 W9 y o g;a a a a N N N N N a G W M 1 r r r r r r r r r r O w I'' 1 0 O O 0 0 0 0 0 0 0 Q' V To Qr� '� ' �iN NNLNN N N :N N N '�... y c co M a ,r i C o N N 1 0 0 0 0 0 0 0 0 0 0 ( c I O 0 0 0 O O O o O O CD Q E o 0 0 0 0 0 0 0 of w � E i , y Z'<d io o to co ti; to id to co a • y r o o a o o a o 0 0; = u- co �o E , E E ciao to c. e- N th v a to ti o1 V N 0 °x O F- Q o O r r v = 4- +r. r r 3 0 ? Z t `.. y C_I I, re n e i n r. n 1. ti' o g �+ t7 Z a w U.. 0 0 0 0 0 0 o a o o w t" t' ? it I- CI iy ❑ 2ja a a N a a a a N N .. h _ h Y mI- N ' r r r r r e- r r 4- r '3III 41 ›+ts 4i y Eo 0 0 0 o 0 0 0 0 o 0. N a3 C ID 1:1 T 1 i 1 '`"N N N N N N N N N N y N Q Z y _ O Z Q J a • ..- E-1," �. I I cNo ceJy LLd �) a I� j r N ei d u� t0 1� CO Qt Q Z I. U a V! ..---2 _ ._ .. . . _.� 3 1 111LLL • • BAKER HUGHES Proposal No: 1001149903G COOK INLET ENERGY LLC Otter#1-12 Kenai County, Alaska May 23, 2012 Production Cement Post Job Prepared for: Prepared by: Courtney Rust Joshua Herald Drilling Engineer Technical Support Engineer Cook Inlet Energy Bus Phone: 907-776-4084 Bus Phone: 907-433-3809 Email: Joshua.Herald@bakerhughes.com Email: courtney.rust@cookinlet.net Mobile: 907-398-8303 Mobile: 907-350-0091 Service Point: Service Representatives: BJS, KENAI Rod Edwards Bus Phone: 907-776-4084 Account Manager Fax: 907-776-4087 Bus Phone: 907-267-3487 Mobile: 907-229-6536 Powered by PowerVision Gr4105 • • Operator Name: COOK INLET ENERGY LLC ViI■ Well Name: Otter#1-12 BAKER Job Description: 4-1/2" Prod Casing HUGHES Date: May 23, 2012 Proposal No: 1001149903G JOB AT A GLANCE Depth (TVD) 7,000 ft Depth (MD) 7,000 ft Hole Size 6.125 in Casing Size/Weight 4 1/2 in, 12.6 lbs/ft Pump Via 4 1/2" O.D. (3.958" .I.D) 12.6 Total Mix Water Required 3,627 gals Weighted Spacer SealBond w/3%KCL 40 bbls Density 11.0 ppg Slurry Class G - Gas Tight 391 sacks Density 13.5 ppg Yield 1.84 cf/sack Displacement Drilling Mud 105 bbls Density 10.2 ppg Report Printed on: May 23,2012 4'35 PM Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • • t Operator Name: COOK INLET ENERGY LLC rake Well Name: Otter#1-12 BAKER Job Description: 4-1/2" Prod Casing HUGHES Date: May 23, 2012 Proposal No:1001149903G WELL DATA ANNULAR GEOMETRY ANNULAR I.D. (in) DEPTH(ft) I MEASURED TRUE VERTICAL 6.276 CASING 2,063 I 2,063 6.125 HOLE I 7,000 I 7,000 SUSPENDED PIPES DIAMETER (in) WEIGHT DEPTH(ft) O.D. I I.D. (lbs/ft) MEASURED I TRUE VERTICAL 4.500 I 3.958 I 12.6 I 7,000 I 7,000 Float/Landing Collar set @ 6,920 ft Mud Density 10.20 ppg Mud Type Water Based Est. Static Temp. 116 ° F Est. Circ. Temp. 107 ° F VOLUME CALCULATIONS 563 ft x 0.1044 cf/ft with 0% excess = 58.8 cf 4,937 ft x 0.0942 cf/ft with 40% excess = 653.2 cf 80 ft x 0.0854 cf/ft with 0% excess = 6.8 cf(inside pipe) TOTAL SLURRY VOLUME = 718.8 cf = 128 bbls Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping • Operator Name: COOK INLET ENERGY LLC 11 Well Name: Otter#1-12 BAKER Job Description: 4-1/2" Prod Casing HUGHES Date: May 23, 2012 Proposal No: 1001149903G FLUID SPECIFICATIONS Weighted Spacer 40.0 bbls SealBond w/3%KCL + 19 lbs/bbl Potassium Chloride + 123.7 lbs/bbl Barite -Sacked @ 11 ppg VOLUME VOLUME FLUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Slurry 719 / 1.84 = 391 sacks Class G Cement+ 10% bwoc BA-90 + 0.005 lbs/sack Static Free +2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA- 301 + 1 gals/100 sack FP-6L+ 0.5% bwoc Sodium Metasilicate +82.3% Fresh Water Displacement 105.3 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) 9.28 Amount of Mix Fluid (gps) 9.29 Additives may change pending test results and actual well temperatures. Have more questions? You can find us at: http://www.bakerhughes.com/products-and-services/pressure-pumping '//as West Coast Area Laboratory Report BAKER HUGHES Report#: CMT006612A Client/Well Information: Company: Cook Inlet Energy District: Kenai Depth MD: 6700 Field: Otter Creek Job Type: Production Depth TVD: 6700 Well: Otter#1-12 Hole Size: 6/1/2002 BHST: 114 Prepared for: Courtney Rust Casing Size: 5-1/2" BHCT 107 Submitted by: Joshua Herald Cement: Class G Water: Fresh Tested by: Dom Lot#: Alaska G Date: 2/14/12 Static Free 0.05 % BWOC ASA-301 0.1 % BWOC Base Class G 100 % FP-6L 1 gal/100sack A-2 (SMS) 0.5 % BWOC Additives BA-90 10 % BWOC A-7 (CaCl2) 2 % BWOC BA-56 2.5 % BWOC Density: 13.5 ppg I Yield: 1.84 ft3/sack Mix Water: 9.284 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 6 rpm 3 rpm PV YP Bingham Ambient Plastic 107 171 106 76 48 12 10 87 19 Gel 10 sec 10 min 100 lb/sqft 500 lb/sqft Free Water: 90 deg 0 Strength Fluid Loss: 20 cc/30min Consistometer Recordin. of Bearden Consistenc Time is in hrs", Machine: Taz 30 bc: 50 bc: - 70 bc: 3:47 100 bc: 600-1 40000= 100— 540— 36000— 90— 480 7 32000— 80— 420— 28000— 70' 360_ g 24000- 60— - v6 _ .. 300= ;20000- 50 i ' t; . gm ti240 &16000 7 40-_ ' 180 12000_ 30 - 1' ill 120- 8000- 20-. -__ ___._. t __ ... ...._ __.. _._ _._..-. .__. _ 60- 4000- 10 7 ,_ _ _._. __.__ _______. _._._, --.. -. 0:00 0:30 150 1:30 2:00 L'.:30 3'.00 3'.30 400 Time(FiH:M.q Compressive Strength Data: #;. Temp 4:09 8:22 8 hr 12 hr, 24 hr 48 hr 72 hr , 96 hr 114 F 50 psi 500 psi 458 824111111 24 1612 2478 2747 • 360' 18- 4500_,____ __} } _- ____ 320 16— —4000 ., ---_ _ e.'-' 280-- _14 3500- '-""" L 77: 240— 12— 3000 } " r I200— 10- 2500 F 1 160— i 8' 2000 4. -} 120- r'. 6- 1500- O 80— a-- t0°0 ----t i } { } 40-- 2— 5007 t -{ ti 0 6 12 18 24 30 36 42 46 54 60 e6 72 T (He) Comments: Notice:This report is presented in good faith based upon present day technology and information provided:but because of variable conditions and other information which must be relied upon,Baker Hughes makes no warranty,express or implied,as to the accuracy of the data or of any calculations or opinons expressed herein. You agree that Baker Hughes shall not be liable for any loss or damage, whether due to negligence or otherwise,arising out of or in connection with such data,calculations,or opinons. • • FA"I I I CEMENT JOB REPORT BAKER HUGHES CUSTOMER COOK INLET ENERGY LLC DATE 23-JUN-12 F.R•# 1001917821 SERV.SUPV. REUBEN D JUNKERT LEASE&WELL NAME LOCATION COUNTY-PARISH-BLACK OTTER#1-API 50283201630000 12-14N-10W T Alaska DISTRICT DRILLING CONTRACTOR RIG# TYPE OF JOB Kenai 34 Long String SIZES TYPE OF PLUGS LIST-CSO-HARDWARE i MECHANICAL BARRIERS MD TVD HANGER TYPES MD TVP Cement Plug,Rubber,Bottom 4-1/2 Float Collar,Al Ftrp,•-1/2-8rd Cement Plug,Rubber,Top 4-1/2 in -Float Shoe 4-1/2-8rd ! PHYSICAL SLURRY PROPERTIES I SACKS SLURRY SLURRY WATER PUMP Bbl OF WGT YLD GPS MAE Bbl MIX MATERIALS FURNISHED BY BJ I LAB REPORT MO. CEMENT , PPG FT MAIN SLURRY WATER SealBond vl3%KCL -T 11 40 Class G-Gas Tight ! 391 13.5 1.84 9.28 128.02¢ 86.3 Available Mix Water 400 BbL Available DlepL Fluid 350 Dbl. TOTAL 1 168.021 86.36 HOLE TBG-CSG-O.P. COLLAR DEPTHS SIZE %EXCESS DEPTH ID OD WGT. 4 TYPE MD TVD ; GRADE , SHOE FLOAT STAGE 6.125 7000 3.958 4.5 12.6 CSG 7000 7000 LAST CASING PKR-CMT RET-BR PL-LINER PERF.DEPTH TOP CONN WELL FLUID ID , WGT TYPE i MO BRAND,B.1 TOP I SIZE, THREAD___TYPE Yin 6.3CI)7 26 2063 2063 3420 3420 , 4.518RD WATER BASED ML, 9.9 DISPL VOLUME DISPL FLUID CAL PSI CAL MAX PSI OP.MAX MAX TOG PSI MAX CSG PSI MIX VOLUME UOM TYPE WGT. BUMP PLUG i TO REV. SQ.PSI RATED Operator RATED Operator WATER 84.5 BBLS 2500 551 rig EXPLANATION:TROUBLE SETTING TOOL,RUNNING CSG,ETC.PRIOR TO CEMENTING: PRESSUREIRATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE BbI.FLUID FLUID SAFETY MEETING: BJ CREW IX CO.REP. X HR:MIN. PIPE ANNULUS BPM PUMPED , TYPE TEST LIDS 3500 Pal CIRCULATING WELL -RIO ,LX BJ 13:00 ` , � Yard call 1420 1 I _— , i _�. I pre trip safety meeting -.. 15:00 j arrive at rediski 15:30 " Iarrive• in belogua II 15:40 I1 check in at camp 16:D0 1 ' 'call company man 17:00 pre trip safety meeting 18:00 ' I arrive on location/talk to Mike Murry 18:15 tall gate safety meeting 18:30 i I have loader clear area 19:30 spot van w .. 20:30 1 i start rig up 00:45 I 1 secure location/talk to company man 06-22-12 01:00 I 1 leave location 02:00 i I arrive at camp 09:30 i 1 call Mike Murry _ _ 14:00 I ;__ left camp 15:00 talk to company man 15:15 tail gait safety meeting 15:25 Istart equipment 15:45 ,test equipment Repw1 Pmmn 66 Alti-2/.12 01:66:61 Page 1411004 • I vp 1 (%. CEMENT JOB REPORT BAKER liUGIGES PRESSURE/RATE DETAIL EXPLANATION TIME PRESSURE-PSI RATE Bbr.FLUID FLU SAFETY MEETING: BJ CREW f FLUID XCO.REP. X HR:MIN. PIPE ANNULUS BPM I PUMPED - TYPE TESTLNIES 3500 PSI 1I I CIRCULATING WELL - RIG X BJ 16:30 __._s. _i._ _..._, mix 17:30 I tear down and dean up of mixing system 18:30 1.. .._ secure location realm to camp for crew 19:15 leave camp return to location 19:45 I 1 arive at location talk to company man __ 20:00 tail gate safety meeting 20:10 I prepare for cement job 00:00 pre job safety meeting with rig crew and company man 6-23-12 01:18 22 1.8' 2.1(WATER fill lines 01:20 330 0 4.1 WATER low pressure test 01:29 35500 4.1 WATER high pressure test 01:34 i__ + rig curculate and condition weN 01:52 I bath up sealbond spacer 02:04 160 1 2 WATER drop bottom plug 02:05 load top plug tattle tail 02:093 2 SPACER start pumping space 02:21 I 204(34 0 40 SPACER finish pumping spacer 02:24 batch up 13.5 ppg cement _ 02:39 364 4.8 4 CEMENT start pumping 13.5 ppg cement , 02:56 14 0 69.7 jCEMENT finish pumping 13.5ppg cement(mix and pumped 212 sacks) 02:59 _ I wash lines to slop tank 03:07 2°01 6.7 1 WATER drop top plug and start dissplacement 03:20 12261 2 75 WATER slow rate 03:25 105/1— 0 85 WATER finish displacement 03:45 0 0 i 85,WATER check floats 03:50 ' turn over to rig 04:00 rig down safety meeting 04:10 1 r __ j start wash up staa l rig down 06:00 1 ! talk to company man secure location 06:15 II return to camp Amount and type of Cement _ s ': 212 sacks Class G cement+10%bwoc BA90+0.005 lbs/sack static free+2%bwoc calcium cioride+2.5%bwoc BA56+0.1%bwoc ASA- 301 +1 gals/100 sacks fp-6L+0.5%bwoc sodium metassilicate+ 82.3%Fresh Water PSI TO TEST BBLCMT TOTAL PSI SPOT BUMPED BUMP FLOAT RETURNS/ BBL LEFT-ON TOP OUT SERVICE SUPERVISOR SIGNATURE. PLUG PLUG EQUIP. REVERSED PUMPED CSG CEMENT _ Y N Y N 189 0 Y N i_________-------' 5yxr,-,...l:x+ r,1+24.0011414]1 Page 2 • • N (6dd)(A19a)xnv ' O (6dd) uaconN-- M O LL) 0 N N I I I I I I I I I I I I I O 0 _._. .. -._......__...-.-._ .-..-.....! .._. .. Lo >" E co E - o a▪) R E N Q g2 (n o E to : (p a - m W —s - us iTs 0 c 4), U C O w6 o o t i coca S E C o ---_. � r N 0 In m r C a z _ E d �� G w L ca -� U a co i .0 O O _ @ co to ch l W 4-) o U a 1 cn co a' d n > -c i a:______4O Lo o L CL1)5 C � cn 1 5 ~ o(/:/ 4 "4") % W y E 3 I d d y M � c a 0) 1 E , mo. � U - = a r. L O 0 0 L_____ tn � 00 a> J 0 (1) ai = ._ .Q L = -- cp I N Z E — `_ _ it —) o = _W I I l (13 '105 co O V N 0 (wdq)Z+1.mo1J0 I I I I m 013 O O O O U_ O O O O ' M N N (Isd) 1, SS Jd❑ us m • N_ O N CO- 5;T a U) 0 >% m at 000O0000000o0303 CO 00000000(0ao000oI,-ao0or-0oaor-000oOoOo0000N-rN-r-r-oor-aoN-N-r- Q Q N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Q `.� N N N N N N N N N N N N(V N N N N N N N N N N N N N N N N N N N N N N N N N N N N CD Cr) ctO)(nN-ol V O!) CD CO QQ. V:O V:(O N 6)ONV ul Ln 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 00 0 0 00 0 0 OO TiN N N Ti N U)V N-Oo 00 0 M + w '. 0 '� 000000000000000000000000OOOOOooa3T-T-�Un000DT- 0)CD a O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O T N N N N N N M M MC) Ti L a, N d v. w O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 00 OD T-T-r-01 00 CO r--O)O y� 1L Et.. O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O—N N N N N N M M 01 0 L a e, `' 3 E } O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0-O)O O O(0 O O CO N O OO �. N v. N N W � C 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 0 0 ch u 0 Co � oL 4, L.:• UO i yCOOOOLOTrTrTrTrI- r-L0(OUU)(ON-COU)UlUlOn(O(O(O V(O(O V CV V 000�� NN a .- Q N N N N N N M M CO N(C)N EWE c, oEtv N � y ? W -Q o m m - c) 4. (h NZ N 7 N 0) >' N N M V u)OO r-03 0 0)0)r-N(NV U)U)U)O U)11 1.0 Q1 O r-CO O)O N M V'V'OU 0 N-CO 0 0 M .0 CO M O M O M O M O CO O M T- Cr T-Cr T-V'T-Tt T-v T-V',-v V'N(0 N(f)N(n N On N(n MOM O O N - M V V'L()OC)(D O N-r 0O 00 O 01 CD C3 -N N M M V'V'OO O0 OO Ofl r-r-0000 O)0)00 NMM Ti = 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N E 1► 0a U) 00000000000000000000000000000000000000000 03 • i N_ O N M N a) C ) T co CCS N O k m a1 N-N-N-N-N-CD0000f—N-t`rN-N00I-N-CDN-OU)OD0000N-0)T— T—NNMN V U)U)c UD40U0 ri Q Q CV CV NN CV NN N N N N N N N N N N N CV N N N N N N N N N N N N N N NN Q N N N N N N N N N N N N N N N N N N N CO CO 00 CO CO CO CO co 00 M CO CO CO co co CO 05 CO 00 CO CO CO a) Q V CO CO 0)CD V CD I–co N-CDNU100MM V NMrN- 0) 010)000)030)10N-N-NLO) CD .7 QCDCDCDCDrf—NN-N-NC`COCDCDrCDLL)CD CD CDCDCDLDCDU)CD CD CO CDCD CDCD QD U)CD CD ODrCD CO LD CO Co 00 Co00cc;0o0cc;0ao00cc;000000 COCOCOCCCCcOa5cO owcoCpC OCO o5COLO 0 U, co) cts C v- 0 O 1LE— Et vvvvvvvvvvvvvv.—44-.Ni v. ..•v.4. . 4- 4 4444444 .N L `0 !• w 42 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �L (/) v4444v4vv444444vvo66o60000000000000000000 O L a a) L 000T-0000000000000000000000000000000000000 03• g! 15a) U..— 00000000000000000000000000000000000000000 r i Stv -. 0 O oY o N O U 0 CO CO LO LD I—O)O)M N M M M 0) O L a) fq MMOOOOONN- COCDLD V Co(N 0) V Q M M CD M M N N a LD Ln U)LD U) N CO U) • .0 � a `. M M M T-M M M M M M M M M M M M�v�Lf)N-CO U)V CDS V N-a)CO V U)M V V U)��0 U) (n z co Z wO Z N 4:1 o 0 r0 -) US 'E M z a) �^ MU)CD CO CO O)0)T-N M cr U)CD N-00 CD O—N M LOU)CO 00000 M'ct V(D N-00 CD O—N 01-4-U) caM O M O M O M T Cn N Ln N L[)N Ln N Cn N O co O co O M O M O cr T-V V' Z G1 6565a5CON0)0)06 NNMMd:656i a565 CO 006)000 65 65 .4 65 N 3 NNNNNNNNNNNMMMMMMMMMMMMMMMMMMM V�f 71". 71".�'(C V' U) F► O D U) 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 0 0 0 0 0 0 m • • N_ 0 N Co N a) T CE a N N C/) O 00000000000000000000000000000 �C m Q CO Ln CO CO CO CO Ln CO COCOM W tO0)0)OOo00N000'—NN O Q Q N N N C V C V N C V 0 0 0 0)0 0 0 0 0 0 0—0 0 (b co CO CO CO co 00 0)0)0)00 0) d C • tn M(OMCO (0N COMB 0001.0LOMr00 CO V V (D,-- CONOCONLU .ZO(O(OO COtO CO(O CO CO CO Ln CO Ln co Ln()CO CO CO CO CO CO Cn Ln CO O CO CCOO CO(O CO CO CO Ln Ln CO in CO CO(fl co Z 4 a)co 00 ao 00(b 0o ao 0o CO a)U)co CO CO CO CO CO ao ad(b CO 0 0)ao cd ao 0o cd 00 0o ao ao co a)cd 0o ao ao ao 0 O U) + O V. O •Q CO CO M CO e V V V V V'Cr V V'Cr'Cr V V V V V V'Cr V V'Cr'Cr V V V'Cr'Cr V'Cr V'Cr V'Cr'Cr V Ln Lf)(D(.0(0(O CO .N CD p 030 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 N N 00 0 0 0 0 0 es U. CO 0000000000000000000000000000000000 - -(N0000 0 L _ in COM 0 0000000000000000000000000000000000000000 � d LL (Nl� 'Z. rn00000000000000000000000000000000 ,--00000 � imSU Oo o O• i d V W •• i v• 4 0— 00 0 0 00 CO)LU(DCODN- 0 •- •Q L Q) a • M Co Co co M V V M M N 00� 0)N-0)0)0)<- O)O) 0)0)CO<- CO O) V'CO O) CO C G1 co o N .Q V) a d CO -0 E 42M cnZ N 0000 N CO CO 0 NM V Ln CO N.COCD0N NM V Ln(OI-c000 NM V in CO N- U CO V V NLUNLUNLUNLUNLOCOOCMOMOCMOMO V V�V�-V•- V�"-LO N LO N Ln NLn N t' O LO(O CO W 00 O)01 0 0 N M M V V Ln Ln(fl CD t`CO CO 01 0)0 O— csi N co co V V an Ln(.0 lU V V V V V V V V V in in Ln Ln In In Ln in in Ln in in in in Ln in in Ln to 0000000000000 (/) V. CO .. .. .. .. .. .. .. .. I� O O C/) 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 0 0 0 0 0 0 m • • O N M N a) C ) T co a CO co 0 00000000000000000000000000 _000000 k m Q X-OX-N OO OOTrT-fOOCV cV oD rM0T-0MOOMhT-0000NTrI- NOMMTr O N O��V1 6 T.:e-O��O�O�O O O r N 0 00 0 0 0 M O O N N M M Q Q 000000000000co 0 d V Co CO N N Cn Cn 0 T-0 0 0 0) Co I.T-O I.I.-V Co T-CO T- CO N Co CO Co V Co Tr 0 V CO CO Co CO CO Co , (Ni . . . . .N.-.-N r-��(N'�'-0 0 10 MT-Cl O h O 1 V U)T-CO 0 Z O`. CO CO Co CO CO CO 00000000000000000000 O 0 M } w 715T-OO'-00000N-Cn olN 000n u)Tr M M 0 MNNNNNNNNNNNNN V. O 'r 0 0 N rY CO co 0'-M(n N-0 N t C0 00 O N M On CO OO OO CO OO CO CO CO CO OO OO CO OO N UL � s- COCOOOCOCOC T-T- NNNNNNMMMMM V V TrTrTrTrV•7 V Tr Tr V'TrTrTrTrTr L CO tr)� ___ } CO Q 0) CO V M'-O Co 4 V CO N N CO CV S L w 00000 COM 01001000 N CO I!)N-O CO V COCOON 4 CO f. 00000000000000 IL Cl) `_ 00006O'-MC!)660 NNNNNMMMMMM V V'T'Tr000000000 O L n- a) L Q) OOOOO CnT-00 CA V'OC N-L0 Cn COCOO CO Cn'-0 O O N 00 O 0000000000000 N. C) d 'Q O O O O O'-M CO CO(V M CO CO M CO M M M M M M M M M M M CV N 0 0 0 0 0 0 0 0 0 0 0 0 0 � � . � Oo C m (1) 0 0 h d L G) C!)h CbNf-N0000 0000MCDO.r- ')V 000 CO V d L OC0CD cfl T- CO0CO 000 L0 4 0OnC COC'MN0CD4r- tO Co • .Q Ea �� u7)NCO MM V A T-CD CTr MMcr CO(.1 0004 '-CO -C!). O!)CO Ln Tr Tr CO M T-V eca) CI) .2 •Q �ny oO � > y z M C �+ 000 N V 4CO1,-00000 NM4C!)CoN-CO0'-NM�u)N-N-0000NMMOICOCDO000 ;l:J On N O M O M O M O M O.1 T..Nr c'r-4 -4T-4 N c0 N On N LAD N C!)M O M O M O M O M O V Z O co r-Cb 0000OO T- N M M Cf d'66 CO O��00000000 .. ..NMM Cr V 66 Cfl O�� N 0 0 0 0 0 0 N N N N N N N N N N N N N N N C1) 4. CO N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N � I► 0 D U) O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O • • Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, July 16, 2012 9:08 AM To: 'courtney Rust' Subject: RE: Otter#1 Courtney, It has been awhile since you have sent in a status report. Could you send a well update on your activities over the last several weeks. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Schwartz, Guy L (DOA) Sent: Monday, July 16, 2012 8:45 AM To: 'courtney Rust' Subject: RE: Otter #1 Courtney, You can perforate these two zones without additional paperwork. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: courtney Rust [mailto:courtney.rust@cookinlet.net] Sent: Sunday, July 15, 2012 5:27 PM To: Schwartz, Guy L (DOA) Subject: Otter #1 Guy, Cook Inlet Energy would like to reperf the zones previously listed in the permit. I spoke with you on the phone and you had said that would not require any additional permitting, but David is now wondering about two new zones 5140'-5150' and 5440'-5450', can we add those to the reperfing or would that require something additional? Courtney 7/16/2012 • • Cook Inlet Energy otter #1 <212 -o1? _ Proposed Completion op„2..‹-s Diagram Conductor: � N 10 3/4", 45.5#, L-80, BTC (ID = 9.95") 4.✓ •% ,"". .;'r ���, 2-3/8", 4.7#, J55, E U E Set @157' MD/TVD .; • `'" 4 � . Tubing (Coupling OD = 3.063") ✓` v; Surface: 8 1/2" Hole y, 7 ", 23#, J-55, LTC (ID = 6.151") 4 4,.., Set@ 2092' MD/TVD 4A Production: 6 1/8" Hole 4 1/2", 11.6#, WT-80, LTC (Drift ID :� ' ,Z: =3.875") . Chemical injection mandrel TD: @ 5686' MD/TVD with 1/4' control lines r ; : leA Perforation Intervals: ; : *. Zone: 1 0 , Sliding Sleeve @' MD/TVD Zone: 1 = 258' 3706'-3714'= 8' ' �� Permanent Packer @' MD/TVD 3800'-3804'= 4' :.: 3916'-3920'= 4' :1, Sliding Sleeve @3691' MD/TVD 3960'-3964'= 4' Perfs @3706'-3964' MD/TVD v Zone: 2 Zone: 2= 254' w 4240'-4248'= 8' Permanent Packer @ ' MD/TVD tVi 4270'-4274'=4' 0 1' 4403'-4406'= 3' • Sliding Sleeve @4225 ' MD/TVD 4489'-4494'= 5' , Perfs @ 4240'-4494' MD/TVD 9 t`1(7' 45 ` Zone: 3 N,�o Zone: 3=463' 4710'-4725'= 15' Permanent Packer @ 4620' MD/TVD 4950'-4972'= 22' :•,:J. n�v 4984'-4994'= 10' 4� XN nipple @ 4650' MD/TVD 5004'-5008'=4' y Mule Shoe @ 4680' MD/TVD Iv 5094'-5144'= 50' �` 5166'-5173'= 7' `' e Perfs @ 4710'-5173" MD/TVD • • Page 1 of 1 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, June 25, 2012 11:17 AM To: 'courtney.rust@cookinlet.net' Subject: RE: Otter#1 (PTD 212 -028) Courtney, Thanks for the updated Well sketch. Can you also supply a surface layout for the testing phase... showing location of separator and flare stack etc. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Courtney Rust [mailto:courtney.rust@cookinlet.net] Sent: Monday, June 25, 2012 9:35 AM To: Schwartz, Guy L (DOA) Subject: Otter #1 Guy, Our proposed completion schematic with perforations is attached. We will be perforating with casing guns. Also we would like to flare test this well instead of venting. Thank you, Courtney Rust 6/25/2012 00 • • NI 0 1 NI a Q. .J 7 i 2 r O N ►n co iit(-•„, g4/..: ,,,,,,,77. t v1 ''-1:: . I- • I- \ 1 E . JCV ' 'S a ,` 1\,v' Y1 i � 'p 0 2 I 4 ,,f/i. 5.'lJ Y o4.1 Gw -1 w a Q LL I.t- / U. i -'0Z • --0 10 �- 1 1 o b 0 s] N ig— 5! -N J A w o r0 < h N ma 2 C7 a ! L < C t, ., g . i :, .:, .e b g IA 1 Ef --az E------m® I I _ _0 I I i 4 c-1 me C1 l N € b �F d 14' :1 k --i Iltc,: �Q i5 a 8e I _ H - nom— --Dm i _o I ! III 'li ` fill 11 i le T a a c —F a a. LL i I LT5 c /t i r j1 1 318 1 Page 1 of 1 Schwartz, Guy L (DOA) From: Courtney Rust[courtney.rust@cookinlet.net] Sent: Monday, June 18, 2012 8:04 AM To: Schwartz, Guy L (DOA) Subject: CIE Otter update 6/11-6/18 Attachments: Courtney Rust.vcf Guy, Here is our summary for the last week. 6/12-drilled to 5193', survey at 4960'=8.5 degrees 6/13-drilled to 5250', wash and ream, begin POH to eline, back reamed most of way out. 6/14-continue POH,tight spot at 3723, lost ability to pump and rotate, regained ability to pump, started out slow, worked toward normal pump and flow rate, continued working stuck drill string, Hi Vis sweep, gained ability to POH slowly, large chunks of coal observed over shakers. 6/15-circulate and pull pipe to 3243, packing off, rotate pipe and gain free circulation,wash and back ream, POH and lay down BHA 6/16-RIH with eline, several attempts, unable to go deeper than 3737, logged from there.Test BOP 6/17-RIH with slick tool string, unable to pass 3778', Rig down, RIH with new bha, depth at midnight 1780' 6/18-drilled ahead to 5278' as of 7am. Thanks, Courtney k 7/16/2012 Page 1 of 1 • 0 Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Monday, May 14, 2012 3:04 PM To: 'Krause, Kevin (GE Oil & Gas, VG)' Cc: Russell, Paul (GE Oil & Gas, VG); Cater, Andrew (GE Oil & Gas); drilling.foreman@cookinlet.net; courtney.rust@cookinlet.net; Regg, James B (DOA) Subject: RE: Testing of threaded outlets on Otter 1 i D 21Z,- 02-ie Kevin, As stated below the 2" (7 5/8" x 5 '/2" annulus) threaded connection will be fully pressure tested when the 7 5/8" surface casing gets its 3000 psi test before drilling out. Normally during a diverter function test nothing is pressure tested... this is only a function test to verify proper operation of the annular and knife valve. Once surface casing is set the BOP is nippled up and tested against the wellhead using a blanking plug... and then the surface casing is tested ( along with this 2" connection). Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Krause, Kevin (GE Oil &Gas, VG) [mailto:kevin.krause@ge.com] Sent: Monday, May 14, 2012 2:53 PM To: Schwartz, Guy L (DOA) Cc: Russell, Paul (GE Oil &Gas, VG); Cater, Andrew (GE Oil &Gas); drilling.foreman@cookinlet.net; courtney.rust@cookinlet.net Subject: Testing of threaded outlets on Otter 1 Guy, As per I conversation, I understand that the flood test/hydrostatic test performed prior to drilling surface will be a sufficient test for the threaded and Baker Lok'ed OOA valve (10 3/" x 7 5/8" annulus) on the Otter 1 starter head/casing head. The threaded and Baker Lok'ed OA valve (7 5/8" x 51/2" annulus) will be tested sufficiently during the test of the surface casing prior to drilling out cement. I've attached a drawing for reference. Thanks for your time on this Guy. Let me know if there is any there is anything further on this that we need to consider. Thank You, Kevin Krause Service Manager GE Oil & Gas Drilling and Production Systems Soldotna, AK 99611 Office 907-262-5606 Fax 907-262-5607 Cell 907-398-9995 kevin.krause@ge.com 5/14/2012 r • 40 • (ffe.9 GE Oil & Gas f. 47.7' NM..... ...."--.. SI CM IV / r{o 30.2" o)- 2-9/16"5M Cl o,, 2-9116"5M i �.c,„ off, �� �) L ;( "' ) 1, i ��' 11.4" 4,4-\„ 2-9/16"5M I''2-9/16"5M i. • • 1 44.8" 123.0" 2-9/16"5M Oi E .// ■ 7-1/16"5M Elf--`T g". .0.41_1 r"'.� A{ - 38.2"to c 24.1" 8 '.i �MI 0 O/o ■ Illi■ OO• ■t t IA _ ` 11ril 2-1/16°5M Ill �� 11-.1 I� (I U� es 1 4 Su r-C C'5 ,,---- 23.2" efei s ft �RS -'J7k. � V• 7�` It l., _ 2-1/16"5M /Yj II-- 10.3/4"Casing 7-5/8"Casing L 5-1/2"Casing 2-718"Tubing 1/4"Control Line This drawing is the property of GE Oil&Gas Pressure Control LP and is considered confidential.Unless otherwise approved in writing, COOK INLET ENERGY LLC neither it nor its contents may be used,copied,transmitted or reproduced except for the sole purpose of GE Oil&Gas Pressure Control LP. OTTER#1 10-3/4" x 7-5/8" x 5-1/2" x 2-7/8" 5M LSH/Conventional DRAWN BTF 14FEB12 APPRV Wellhead Assembly, With T-EBS Tubing Head, T-M40-CCL FOR REFERENCE ONLY Tubing Hanger and Adapter Flange DRAWING NO. AE21399-B , • 1 wit ' ri ( ;t C' �� TI) k SEAN PARNELL, GOVERNOR ALASKA OIL AND (AS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION 333 W 7th AVENUE, SU 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 David Hall CEO Cook Inlet Energy, LLC 601 W. 5th Avenue Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, Otter Well #1 Cook Inlet Energy. LLC Permit No: 212-028 Surface Location: 2081' gNLgNS01805FEL, FEL SEC 124T14NOR10W, SM AK W, SM AK Bottomhole Location: 20 Dear Mr. Hall: Enclosed is the approved application for permit to drill the above referenced exploration well. an 30' All dry ditch sample sets submitted to the Commission fromwhere samples are firstcaughthand 10' sample intervals from below the permafrost o sample intervals through target zones. This permit to drill does not exempt you from obtaining additional s not authorize conducting required by law from other governmental agencies, drilling operations until all other required p tts and aprovals have wit draw the permit in bheneventert was In addition, the Commission reserves the right to is erroneously issued. A weekly status report isri guireThefro report show d the be ea generalzed ed until it is suspended or plugged and abandod synopsis of the week's activities and is exclusively for the Commission's internal use. 20, f Operations must be conducted in accordance d l�authorize sta var�ancee AAlaska Administrative Code unless the Commission specifically 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, P-)9e,i41,,„ Cathy*4/‘ Foerster Chair DATED this Lillitlay of May, 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 RECEIVED AligrA OIL AND GAS CONSERVATION COMMON APR 2 0 2012 r r PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj El Single Zone ❑ •1c.Specify if Wistfis propd's d°for: Drill 0 Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ ,'p,{.LZr'"'r2- - Shale Gas CI2.Operator Name: 5. Bond: Blanket ' Single Wel t 11.Well Name and Number: COOK INLET ENERGY,LLC Bond No. 61212870 y[) OTTER WELL#1 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7000' TVD: 7000' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): EXPLORATORY Surface: 2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 1 1,) 390579 Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: N/A 5/1/2012 Total Depth:2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 9.Acres in Property: 14.Distance to Nearest Property: 5760 1805' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 174.8 feet 15.Distance to Nearest Well Open Surface:--x--2267554 y- __146-726-71336- .•i46 6-7:836 Zor _ GL Elevation above MSL: 160 feet to Same Pool: N/A •`L7 4� ., ,, (c/7c 23() zt_../._ 16. Deviated wells: -�.. Kickoff depth: feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 3567 psi Surface: 2867 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 BTC 157' 0 0 157' 157' driven 8 1/2" 7" 26# L-80 BCT-M 2000' 0 0 2000' 2000' 249 SXS, 12.0 ppg 6 1/8" 4 1/2" 12.6# L-80 IBT-M 7000' 0 0 7000' 7000' 391 SXS,13.5 ppg - 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk measured): Casing - • • Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production ' -r Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat 0 BOP Sketch 0 Drilling Program 0 Time v. Depth Plot 0 Shallow Hazard Analysis Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 16-Apr-12 22. I hereby certify that the foregoing is true and correct. Contact Courtney Rust 433-3809 Printed Name David Hall Title CEO Signature 0 /( 1-1-LaPhone 907-433-3804 Date 4/16/2012 Commission Use Only Permit to Drill API Number: ,� Permit Approval See cover letter for other Number: ?l2- 50 � �� 3C(�5 urt , Date: . )\\k ��j- requirements. Conditions of approval: If box is chre�ckedwe ay not be used to explore for,test,or produce coalbed ll methane,gas hydrates,or gas contained in shales: IEK Other: 3v r,s.:. ` iCSt Samples req'd: Yes L( t o❑ Mud log req'd: Yes 0 No ❑ /1 I,� n , 1 bue - -c L, - 5,:e_ er H2S measure : Yes[9] No❑ Directional svy req'd: Yes ❑ No [�! / .t,t /� ) At-- -•SCO 3/S-CaX/1(L)� / !ticlL;Lc- cs�-yL-- 6Lu- / A i;ctr s : t," 2 °-z zt' 0"&k e,..k. Wal 6 e-4. C-0 iter+-• pp e'7�.re.Q 7 ,.i.: - p-er 20 A4 c-Zr,b 35 C'.4X!) w'/s t•p 4.4,E'+eH-s- a-s PiYc sts431. _ APPR VED BY THE COMMISSION DATE: S --/(- /Z COMMISSIONER OR ! Form 10-401(Revised 7/2009) This permit is valid for 24 months from thdt@ oppYL(20 AAC 25.005(9)) Submit in Duplicate • • RECEIVED Cook Inlet Energy APR 2 0 20121 AOGCC_ April 19, 2012 It 5 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: Otter#1 Dear Ms. Foerster, Cook Inlet Energy(CIE)hereby submits a Permit to Drill application for its gas exploration well, Otter#1 located on CIE lease#390579, approximately 10.5 miles north of Beluga. The well is planned as a straight hole with a total depth of 7000'. 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 waiver request to use a 12"diverter line instead of the 16"diverter requirement according to 20 AAC 25.035 1. This is due to the slim 8 1/2" surface hole. Also a waiver is requested for AOGCC Regulation 20 AAC 25.035 for the use of threaded line pipe on the wellhead due to the low expected pressures and the short exposure time. In Addition, CIE requests confirmation that a Sub-Surface Safety Valve is not required for this 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 May 1, 2012 If you have any questions,please contact me at(907)-433-3804. Sincerely, David Hall CEO—Cook Inlet Energy 601 W.5a'Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax F . • 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 As built rig and diverter line set up 13 Wellhead Schematic 14 Geo-Mechanical Plot 15 Shallow Hazards Analysis 16 Seismic Information: Confidential 22 Background Information 25 Casing Program 31 Casing Design 31 Comments: 31 Maximum Anticipated Surface Pressure 32 Logging Plan 34 Mud Logging Plan 34 Drilling Fluid Program 35 Solids Control and Equipment 35 Drilling Waste Storage 36 Cementing Program 37 Bit Proposal 39 Regulatory Waiver and Special Procedures 40 3IPage r 0 0 Location Schematic r ASIr:IN • Profractixi SacUOn Line o.7 4 ..._............ SEC 12 14N Ri OW.$M AK g iSED CALE ,i E FED NOTES 147 '0 UAW OF 1RMZ'Gt1TJl1.MD i VERTICAL CONTROL WAS DETERMINED WN4 WM GPU9eowr MM FROM GENS SW STAMM WSW r MOW,'TWA PIDA101162*MI 0 ANt2 a MD CLAW MEWS)O1FiW12O41 MCI Comm.PONT 20:AEP NADIR n. ZONE 6 EPOCH 2Pin DATUM BRIG It 21? 5LT.1NN C 14112E7.83E!LZ'ATION;1dE.31 '-.� GEOID QMNA OIIIa4n111 *� 4 SECTION LSE SETS DEIEEl� ' _ — — — FRON THE PROTRACTED SEC110N S =MR WANE& , 24,DORPINDON vENAON 1.0.1157611 MJSED FOR DATUM CONVERSION. SL-OTTER 01 ` -` -, 'C 18051 Ati , \ --,.. ---\_A ,„„,,,,... , ,,,,\ 0 ,,,„ \\ ,„.. r.*:pf...444k„, m ' :..... qt. ',,, ,,.",\V v...,.....„.......4.,. ' 'a'' ',, 1 f 1 \: , \\\, , \it\p, Ni2875742.563 '' E:127483.370 t,.. \ LAT: 6119'12.175-N `'.. LONG:13O'38'54.912 W *TIER NO , 1 `N \ASP ZONE 4'NAD27 �. \ N:2875720.301 D88 `� ELEV. 160.0' NA ` 5:327439.010 \ ,,. LAT: 6119'11.953"N �` LONCk 18©'.�8'53.4O4 w �`*� N. �'x, ASP ZONE 4 NAD27 .. \ELEV. MO' NA D88 \ �'`, w "°4 OTTER WELL PAD CONSTRUCTION 4411m. T1 OR /f12 101111.100k it 11t MY MCLANE CONSULTING INC. norms OM Willg .. PROPOSED war 1..r .moo-..°.. AS-STAKED SURFACE LOCATION DIAGRAM Mv,no ,mw =0:4 Malleil-liMPRINI PillO114.114. WV M xxx nera Wok INLET ENF ..r Y — muce amP.O.00XASM 4 1 Consilbsits ""a"'INILLIZIN _ ANONOI Aoe,CYC IMMO Wage • S r COMPANY:Cook Inlet Gas CASING l WELL NAME: SIZE: 4 1/2 FIELD; WEIGHT: 11.60 COUNTY: GRADE: STATE: THREAD: DATE: 5-8-12 DEPTH: ITEM DESCRIPTION From Btm Up 4 1/2"permenant Packer 000 seal assy with 1/2"Mule Shoe ' 2 3/8"tubing 2 3/8 sliding sleeve 2 3/8"tubing 4 1/2"permenant Packer seal assy with 1/2"Mule Shoe 2 3/8"tubing r 2 3/8 sliding sleeve 2 3/8"tubing 000 Total Sales Rental and service PREPARED BY: PREPARED FOR: OFFICE: FAX: WEATHERFORD COMPLETION SYSTEMS OFFICE:435-789-7121 FAX:(435)789-7122 Math/Any& Anchorage Alaska • • Updated Drilling Procedure with Completion 1-v Pre-Rig Work A. Drive 10 3/4" conductor to minimum of 157' or refusal. Preheat and Weld on Vetco Multibowl 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 Reserve 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 8.5" TC11PC Tuff Cutter Tooth bit and BHA. Run in hole. Clean out conductor. Spud well. 6. Drill 8.5" 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. 8.5" 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. • 8. Have the Mud loggers drop carbide that creates acetylene gas and shows up as a gas show to determine hole volume.Circulate bottoms up. Pull out of hole. Run back to bottom on ANY signs of swabbing. Note: Open hole logging is not anticipated in this hole section. 9. Rig up Weatherford. Run 7" casing float collar 40' above float shoe. Run and space out 7" 26# L-80 BTC-M 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" casing near rig floor. 10. Land casing hanger in starting head. Cement 7" 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 huh, 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 1/8" SKH513D-B1C PDC Drill bit with Steel breaker plate attached, BHA and RIH to shoe. Test 7" 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 12.5 ppg and anticipated is 15.7 ppg 16. Drill 6 1/8" hole to 7000'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 10.6 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 Baker Atlas Triple combo log as directed. Rig down Atlas. 19. Run back in with 6 1/8" 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 upper rams to 4%". 21. Rig up and run 4 1/2" 12.6# L-80 IBT-M casing. Install float collar two joints above float shoe. Space out hanger. Pickup landing joint and cementing head. Rig up and Circulate minimum two bottoms up. Reciprocate casing during circulation. Have safety joints with crossovers made up for 4 %" casing run. 22. Cement 4 1/2" casing. Reciprocate pipe during cementing if possible. Displace top plug with kill weight completion brine. 23. Land 4 1/2" casing hanger. Test hanger to 3000 psi. 24. Rig up eLine. Make gauge ring run to TD. • 25. Run CBL from TD to TOC. Evaluate log. Note: Ensure 24 hours set time on cement prior to running log. C:�}^'" 26. Test casing to 3000 psi. 349 27. Run gauge rink Junk basket to TD. Set_owerpermanent packer above Tyonek zone on wireline. 28. Perforate Beluga zone. Use shooting nipple and monitor well for flow. 29. Set upper permanent packer. . 30. Pick up 2 3/8" completion string, seal assemblies and TCP Guns spaced out for Tyonek zone. 31. Tag top packer with locator, pick up and space out tubing. Land tubing hanger. 32. Test annulus to 1500 psi 33. Set BPV. Check well for flow, nipple down BOPs, nipple up and test tree. 34. Open upper sliding sleeve. Displace tubing with N2 or Diesel to proper under balance. Note: if well is a keeper, annulus must be displaced with appropriate packer fluid and freeze protection. 35. Close Sliding sleeve. Perforate lower Tyonek zone. 36. Flow test well 37. Set plug in XN nipple below bottom packer. 38. Open Beluga zone sleeve. 39. Flow test well. ¢ 124 s ! i Drilling Procedure Pre-Rig Work A. Drive 10 3/4" conductor to minimum of 157' or refusal. Preheat and Weld on Vetco Multibowl 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 Reserve 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 Mt_glhours in advance. AOGCC must witness test and rig up. ' Fncr 3. Function Test diverter according to AOGCC inspector. Fi Et 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 8.5"TC11PC Tuff Cutter Tooth bit and BHA. Run in hole. Clean out conductor. Spud well. 6. Drill 8.5" 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. 8.5" 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. 5IPage • • 8. Have the Mud loggers drop carbide that creates acetylene gas and shows up as a gas show to determine hole volume. Circulate bottoms up. Pull out of hole. Run back to bottom on ANY signs of swabbing. Note: Open hole logging is not anticipated in this hole section. 9. Rig up Weatherford. Run 7" casing float collar 40' above float shoe. Run and space out 7" 23# J55 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" casing near rig floor. 10. Land casing hanger in starting head. Cement 7" casing with top and bottom plugs with 100 excess cement (more if carbide indicates). Drain Diverter of any cement. Back out landing joint. j5 11. WOC for 12 hours. Check for flow. `j 5 12. Nipple down diverter. Perform top job if cement is not to surface. Note hanger bypass area is LI 3L}(5` inrt 13. Nipple up 11" BOPs with 4.5" pipe 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 1/8" SKH513D-B1C PDC Drill bit with Steel breaker plate attached, BHA and RIH to shoe. Test 7" 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 12.5 ppg,and anticipated is 15.7 ppg 16. Drill 6 1/8" hole to 7000'taking surveys every 500'. • Make wiper trips as required. • Always circulate bottoms up prior to an rip. • Trip tank to be used on all trips. Do t pull more than 10 singles before filling hole and check for flow. • Flow Check all drilling breaks. e. • The mud density will be maintained between 9.5 and 10.6 ppg as required to control connection gas 17. Circulate bottoms up. Make wiper trip back to h Circulate and condition hole for logging. Pull out of hole. 18. Rig up and Run Baker Atlas Triple combo log as directed. Rig down Atlas. 19. Run back in with 6 1/8/Bit and BHA(without motor) to bottom. Circulate and condition hole. Pull out of hole. (if drr hole a separate abandonment program will be written.) 20. Change and test upper rams to 4%". 21. Rig._pp_and run 4 1/2" 11.6#WT 80 LTC casing.Install float collar two joints above float shoe. Space out hanger. Pickup landing joint and cementing head. Rig up and Circulate minimum two bottoms up. Reciprocate casing during circulation. Have safety joints with crossovers made up for 4 'h"casing run. 22. Cement 4 1/2" casing. Reciprocate pipe during cementing if possible. 23. Land 4 1/2" casing hanger. Test hanger to 3000 C psi. .i_. c ‘„ �, 24. Rig up eLine. Make gauge ring run to TD. 1 15 � Wage • • 25. Run CBL from TD to TOC. Evaluate log. Note: Ensure 24 hours set time on cement prior to running log. 26. Perforation and completion plan to foil w. 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. • • _ Cook Inlet EnergyOtter #1 Proposed Completion Diagram v yN N V,x N .0 t4 Jb+N 10 3/4", 45.5#, L-80, BTC v @157' MD/TVD (ID = 9.95") Driven ��� K y N. 8 1/2" Hole 7", 23#, J-55, LTC s, (ID= 6.151") . ^ Chemical injection mandrel PZ. with /4' control lines rK.• * ',.• .y. @ 1500' TOC 2-3/8", 4.7#, J55, EUE ;-. Tubing (Coupling OD = 3.063") w @ 2,000' MD/TVD y • Sliding Sleeve @ 2,640' MD/TVD J y Permanent Packer @ 2,670' MD/TVD ;y Sliding Sleeve @ 2700' MD/TVD 6 1/8" Hole r: 4e• , •.�• fy Perfs @ 2,730' MD/TVD 4 1/2", 11.6#, WT-80, LTC (Drift ID =3.875") T• f r3 • y Permanent Packer with Seal assembly 4 @6,410' MD/TVD : rXN nipple @ 6,440' MD/TVD • ',• ,Mule Shoe @6,470' MD/TVD yv s irk' Perfs @ 6,500' MD/ND y ry ','`.;!; ;!!;',C" @ 7000' MD/TVD • • Time vs Depth Plot Otter Well Proposed Time vs Depth o' 10 3/4"Casing at 200' (45.5#, L-80, BTC),driven 1000' Drill 8.5" hole 2000' _... 7 " Casing at 2000' (23#,J55 LTC) 3000' 0 a 4000' co co 5000' Drill 6 1/8" Hole 6000' 7000' — 4 1/2" Casing at 7000' (11.6#,WT 80 LTC) 8000' 0 5 10 15 20 25 30 Days 9IPage • • • BOP Sketch nnnn1� 11" 3000# WP BOP 32 7/8" • t J PIPE RAM 29 3/8" BLIND RAM I 1-3 24" 1 11.00 + 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 BOP Equipment 8.5"Surface Hole While drilling the 8.5" 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 1/8"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. 11 Page. . „ s 4110 Diverter Sketch Surface - Diverter Line Rig Floor Flow Nippy a __ P---N 32" Annular Pre venter SIZE 11-Shaffer 311 r CSA F_^t3' I—II Q..r .-- ° ________t L.. .....,vii"ffir: ' =WOW.11110M 13-5A MI J 3 12''Ilivaiirawnlic.Knife Valhi* 12"1504 ANSI 17 Equ a Line 12 1QORal 17 1).77.5 V4'a l Pipe * •"-1 _ 113-5:.'s 5.1 [4S6irA!lwlGiN .rr err 1314° .....++...w f11"5ri0Wellhead "'` 7:`.Mask Y Ground Lewd=? 12IPage r R 0 • As built rig and diverter line set up ..., . .. ..- ..----.- NORTH) t DMA tt, USE.--Ob..II S'S -----] I \rttti , 11 4* \ 1 ,)„, \., ,X.4.,.':4 ,...A.i7,—.. \ •••,- „,,..,, \ N.,7'.;\ \ 4" ,,c;.. .-,,,,..2\\,,, '-.r,,,,.< „ oz, ...,..44/ ..., > s,, s..../ .. \:r.,,q . ,sr- ,,, 44 ts't \' // / / v IstiLtr. OTTER WELL PAD CONSTRUCTION 4'6'13' PROTRACTED SEC,12 .. T14N,RIM,SNL AK oxt:1.1.12 t \,•i MCLANE CONSULTING/NC, R.*At: OTTER WELLS NO 1&2 i 30.7.111C13110-112311,7 RIG ORIENTATION RIG 34 miCittlirttl I 1 HAAN E 51.4‘nre',IC ttlAITS•C ..e.ew.es SI It rtm,etr,4.• 'PR.LW.14* INLET EVER Y -— vet':Art X142111 4:ccr Ma:M=4M P .BOX Uillia4 CtSM.11:411:1 Mr ":1,,E.AttlIKA.71 L , msiOcHORAGE,fAX 30509 1 ”' I 131Page . . • • Wellhead Schematic GE Oil &Gas _z.____ _ ..,,‹ ,...... runi ....., .11:. .. , ... •R 1.1:II k I *a WI ilm+..=.....1 1 ..." ... ,•C 24 I`.. ''t' fi I I :=- PJ _ L — 1. 14,it . I Vie:ritt I .... - • , ..,4 DM- 1_-__A. . lei ,... .1...,. J•=1 1_ IVA'AA a 11 19•,Irw, ,,.......,t, ..%Zarrd L• T."1-relyi Di I,trzymea.G.:CC I.Um 1`..sa.r.:L11 J-I'.213 I ...,1',,,14,11,1,1,..MIIILI'.1'......pryw.lhAII nls, COOK INLET ENERGY LLC i ailha 1.•JI 11.11,1g/11U II..t kn.:4.....I.64.eir....,x...-Amdor...ml.l',......v.....r:L L.14 L.I.l',/,..L•IAL,1-4. OTTER#1 Pka'A' 1 10-3/4"x 7-5/8"x 5-1/T x2-7/&"5M LSI-I/Conventional N 1 BTF 10FEB12 Wellhead Aasernbly, With T-CBS Tubing Head;T-M40-CGL ,V 411 1116 paS fISII'.' Tubing Hangar and Adapter Flange c1.6.1.7141:=Iti.D. AE21399-A 14 , . 0 • Geo-Mechanical Plot Otter Proposed Geo Mechanical Plot Equivalent Mud Weight(PPG) 8 10 12 14 16 18 20 0 -' Sterlin: 950'+/-9"0' 1 i 3/4' 1000 1111 ---- --- 2000 Beluga 27 5'+/-2561 7 5/8 3000 _ - -- Calc Pore Pressure 4000 u..c C. c 5000 Mud Weight (Pore Press. +Drilling 6000 margin) Tyo nek 65 0' Frac 7000 Gradient 5 1/2" 8000 -_._ _.__._._....._ _...------___..._ 9000 15IPage • i Shallow Hazards Analysis Shallow Gas potential Otter Prospect Area A thorough review of all wells drilled within five miles 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 with shallow gas have been identified from these 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. One shallow anomaly is apparent on line No. 10 corresponding to a depth of approximately 1200'. This anomaly is approximately .6 miles west of the proposed well and is not apparent in close proximity to the drillsite. Texas International Petroleum's Pretty Creek St#1 (2- T 14N R 10W was drilled approximately .9 mile immediately Northwest of the planned well to a depth of 6570'. The well was drilled to a depth of 2264' utilizing muds with a weight of 9.4—9.8 ppg with no shallow gas accumulations 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, appropriate care will be exercised while drilling this interval to insure adequate well control should a shallow gas zone be encountered unexpectedly. The package of high amplitude coherent reflectors range from approximately .7142 - .9 seconds at the wellbore. These most probably tie to near and within the Tyonek formation and are generally probably tied to the coal stringers seen in lwr Beluga and Tyonek formation. The events are not seen as strong on the dip line and are probably masked to some extent by the South thrusting fault shadow. The depth range for .7142 to .9 seconds is 3398' —4327' MD (3223' to 4152' SSTVD). CIE's geophysicist observed no other indicators in the seismic data that could signify shallow gas or geopressure, such as bright spots, coherency loss (dim spots), gas chimneys or time sags. - But we would expect to see the same type of events on seismic that are indicating the normal Tyonek stratigraphy including sands, shales and coals. The stronger events are interpreted to generally tie to the coals. Coals across the basin generally exhibit stronger amplitude and better cohesiveness than normal sands, shales and sitstones due to the greater velocity contrast. The only anomaly's observed that we feel might be associated with shallow gas is the one on line 10 near shotpoint 11130 at around .28 - .3 sec. that has been previously identified. This event does not appear to underlie the area being penetrated by our wellbore and is not considered a threat to cause drilling problems in our planned well. 16IPage • The drilling histories of the twelve previously-drilled wells closest to the Otter prospect were examined for difficulties encountered above 2,500'. The wells examined are: Well Distance from Otter Coffee Creek#1 Lewis River B-1 Pretty Creek Unit 224-28 North Tyonek State#1 East Lewis River 1 Lewis River 1-A Lewis River 13-2 Lewis River C-1 Lewis River D-1 Pretty Creek 1 Pretty Creek Unit 4 Theodore River PCU 2 These wells were drilled to various depths,all greater than 2,500',but none encountered significant difficulties in the surface interval. One well,the Lewis River#31-2,encountered some tight spots just above 2,500'but had no problem reaming them out. None of the wells experienced losses,kicks or indications of shallow gas in the surface interval. The offsetting wells were drilled using initial mud weights of 8.4—8.7 ppg and achieving 9.3—9.6 ppg by 2,500'. Conclusion Examination of the drilling histories of the offsetting wells and correlation of their geological sections with Otter using well logs indicate there are no shallow hazards to be expected while drilling Otter Prospect as long as mud weight similar to or exceeding those used in the offsetting wells are utilized. Well Information Casing Tops Plugs Texas International Petroleum 30"@ 41.5' Beluga 100' 55 Sx from TOF @ 6475—6283 Pretty Creek St#1 20"@ 145.8' Tyonek 3882' 60 Sx 6014-5900 API 50-283-20043-00 Permit#74-041 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 171Page • Forcenergy 20"@ 90'RKB Tyonek 700' 7,325'-7,900' Cement Plug 13-3/8"@ 1,219' Three Mile 6,756'-7,133' Cement Plug, Coffee Creek#1 RKB Sand 4,780' EZSV @ 6,800' API:50-283-20094-00 Permit No.97- 9-5/8"@6,715' Chickaloon 5,537'-5,785' Cement Plug, 219 RKB 6,630' EZSV @ 5,785' Mesozoic 4,009'-4,415' Cement Plug, Sec 19,T14N,R1OW,SM 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#1 20"@ 371' RKB Tyonek 6,550' 9,850'-9,950'Cement Plug API: 50-283-20052-00,Permit No.76- 13-3/8"@ 2,399' Middle Groung 31 RKB Shoals 8,312' 8,550'-8,650' Cement Plug 9-5/8"@ 8,557' 6,658'-6,710' Cement Plug, Sec. 10,T14N,R9W,SM RKB 6,710'-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 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. 86- 076 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. 181Page • Well Information Casing Tops Plugs I Cook Inlet Sand Phillips Petroleum 13-3/8"@ 322'MD 1,684' 4,831'-4,964' Cement Plug North Tyonek State#1 9-5/8"@ 1,321'MD Beluga 2,527' 3,931'-4,064' Cement Plug API: 50-283-20040-00,Permit No.73- 16 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 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.75-6 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 10,678', 10,500',8,012' Elevation: 15' GR 9,646'to 11,625' 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 19IPage 10 • Cities Service 30"@ 48' Beluga 2,279' Lewis River 1-A 20"@ 363' Tyonek 5,864' Bell Island API:50-283-20047-00,Permit No.75-5 13-3/8"@ 1,368' 9,142' Chickaloon Sec.2,T14N,R9W,SM 9-5/8"@ 8,147' 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.68-1 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 Well Information Casing Tops Plugs Upper Beluga Union Oil 20"@ 75' 2,700' Middle Beluga Lewis River C-1 13-3/8"@ 368' 3,500' API:50-283-20061-00,Permit No. 178- Lower Beluga 075 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' 201Pagt Cities Service 20"@ 359' Beluga 2,096' 7,135'-7,235' Cement Plug Lewis River D-1 13-3/8"@ 2,395' Tyonek 6,210' 6,180'-6,280' Cement Plug API:50-283-20068-00,Permit No. 80- 141 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 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.201- 193 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 1 13-3/8"@ 2,032' 3,215'-3,450' Cement Plug API: 50-283-20022-00,Permit No.69- 15 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. 211Page . 11, Seismic Information: Confidential 33 34 35 1 36 31 32 111 S °d G 5 Alt 6 111111 18 17 1 22 23 24 a • .11 ms' 411 e a lax Cook Mt Emmy cwIRverrwL PM(ed Liman Mr aat isma, .� 22IPage • • / // Y 1 oil or if Ito f - e /r a 4 F,.f 11.1/41 ►sty�. ,, (i r✓ ( iit f `I I ',' 1. �" I ! 1 S t , I ` Ai l•. T: , A t,. " 0' ' . i' 11a e I. e 44 i • e t . . 4 + tll �� Ir' '� • e e , w, r f,i� ' 1 ,..t.,•1 Li...l. i ,. F § r 4 , �1 �J l .: _ i 1 , e '4 1 1 ;111.11 ri ..I,� r ; zl ,' I 1,l) Sl �i,4F a Pk tyl 1. . "!tie ? 1 Art I- D ;� '.i /Fi,A,. . r ' ,1 a .s� % .' `, �' 1 11 a" ,� ��� ....,.1.A. J r + '1 r C4.2...0' rl, r ebl7rj � 0 e ", ,y ' 1 '' tii 31111:11. O ; 4I11 , 111 1y A ,'',1-..3,"3 w t rt C' r C Icr) It i .tf I '^14 I^ I gib.+ '1 W. K el t„ , �iY � Ier ,4 tj � � ♦' j't ��• f f it`s 11 t l`li 61 °MA '� I rril �,� I {a, .fl Y l e f t, ; r 1 1: A , d. l •,:j,,ds.,: r 0 • (1). I, )TO ) r i I) , : l' ; 1 i ,itr ) l i l !t �' ( t r+11#y r F, , 1$' '1 „, " wI 1 Mf. s' r1 1.. f M• I ! f ,I I ;iY, f 1 1 41 I , 1 1k i� il},�A... I I at I. F A . a,'(, ' il l t . il .i�. t:�'t J �tk r . ..•)'.C :l , l E _ ;' a a - I 23IPag � 0 • w z S N 4 H ; : n°{ f t iF'' t i ' �'}1,P +'ri, i f P Y ' ' 1 1 y 1 1.F {! t P.; i ,� i !. s' 7 (d P r 'j a N '':.i.' it...‘ 1,', ' b '* . i ' , 1 ', , ,..,'' CI k11,1,,',i1.4t " ,F I :, h't f � 'f Aa P ,fir `�i yy i,, `d C W 0 , r •,I`I '�1 f 4 a g : : � " i.{4.4. itI„!. !0q,) i a i t. I r � , � kill) .VUD r14 ti4 ki , ” 1 4 P o ` < (-N1 y 0 ,4. :d`e if ,., L 'v '3'` P I, w cN-I �, ! 7 I t 1 1, i 9 L q+ f :. il,i i t t 1 ' CI = Q n t .:•;114 ,•1,7,',,,%, ,7, %, th it "' 1. �� h 4 1P : .'1 CC m',,1',0+.i Ja)r-Y r r 1,.11 ,4 ;1,'A� 1 ti\'. + 0. ``,t 4 :`-,, i. . 1,. . " aL 111 i.s"1.P Iq i , i 1 Y I'•�. n � u :41t41411:11 i 6� 9 ,•• . y 7.I `,4,` 'I " . 1'f►0,", , J1 P' •1 % „,:.4:2,,,;.„1,1,,, t 1. ,' T i „,„9,r' 1 1 �NN Zi ri, 1 A i,:I t• p ' ➢ 1 ” + P Hi till;. ', 1k 4 {r d i r r. .,,. h0 Ii, t i... tit $ 2 . E 4 u .H. E g 4,11 6 7 L _ s Y 5 I 241Page . * I Background Information Pretty Creek#1 Sec 2 T14N R1OW Cook Inlet 0 / - • , . , , , . I I I I . I : I I .. 1000_i-, I I'. I t t I 2000- : • • I ; ,. - • 1 I ; I i • I I ! t ' • • 3000 - . _,_ _. • ....., , , 4-• . , , , ; - . CD . . • : - - : ' - I:- H-- '!'------ - - CO . itt.. t ...two ..0 . , .1.1 OR i CD III. Ca :A r,r, ..,,,A . --- , 4 t . . ; . . 5000---- ., • iii• i 1 q I . . I . i I I . 1 f t 1 • • • •.:• - -e---!••--:--i•-- "- -- --'•-""- :••---••-'--••'-- . •• . —.1 1 I 1 ' :— • :'— '1''—I:— —- -1—-— 1-• 4---,---— -' ''•' i I I I • i 6000 ,-- . t , 1 1 t 1 t t . . i i tfonfiai 1 PP i 7000-t ; 10.00 100.00 1000.00 Sonic Log Travel Time (pelft) 25IPage • 0 Cook Inlet Energy. Otter Regional Temperature Gradient Temperature, deg F 0 20 40 60 80 100 120 140 160 180 ° I 111111unuI ■ " 1111.111111111111111111111 111 -M Mi MEED .1-: I R11 !� HIN... anU. I 111111111 l 1®a1i .a "!l IIIIluiI iUliiRi 2000 4Iii; iipiHII"i Ik5 i iiii■iUu11 11111 1 � i. 1 iiini� ii nil I e t Cr I11UI ko ill ■Iu 1Ii 4000 I �„11 HHiI1 � imipairdiliN1 iiiimai Ii., i■IP � _. :r :_11 N IUi UIIi IIi I ■. �� i• �i��tI�� 11 f i0 �[EUUimni tk, ■NUii 111111mummoi NilnllhM 111111111111111 Ih1eJ!!IEI1huI1,L F�..t.1 limini. arminu li N�� UhIIiiu ; I9 �i11111 _! Ri e'r !l1 1 Ii11ZIiihlUUI 1NUuui.uh I ... ,i.Na1N ,, N1,. 1.111111E33114 iu=r i 11 inuiii it uia Iii®inNIIUII II11111I ...i M H ihilllinlii ■E1111111111p. 1 UIIIIUINiInII� 1 ii Iiia ■C M - - , 1 1 i1 111UI 1.101 ■ A/NIHIIii1 IIi■.11111N1II1i�1 11 12nrxn nlNl !'4!,! i' 1■ilhUlNllIN1��1 IUI 111 ■lNlNlui i■i Ill�uiuUuii ilI , 11j: - - 1h l 111111Hi ■iil11 11111111 INii IIIIIIUl■ il1111111 111 N ININIU Ii 1II1 mIIIIi 14000 �iHiIHInIIIUUhH1� InMIIiIhhIHhlI 26 Wage Composite Pore Pressure Plot Mud Weight(PPG) t3_L1 g.5 9.0 9.5 10,0 10,5 11.0 3,000 - — Otter-Pore Pressure E 4rMal ... , .,.-.._�._._�._.. _ 5,0® - GAXICF ,�yy��y.�D (r . . 0 0 r . ..._ 1 . i coca inlet Eriergx Composite LOT Plot E gutvalent Mud Weigh'(PPG] , kJ) 100 19.0 11.3 16.0 1S.D 20.0 1,0f.e.1 -- -- ......"-............ , •V 2,030 • • 3..1)00 i .t. 13,Elty Crqck On 224,28 {LOT) 4,051. — 66 Pre nyCrtmk Unii 4[ICT) E ia. 111 toffee cfmmk 1 I OT) a 5,C11X1 j LOT corn Confirms ForrntIon Break to 162Di ..---atter:Mt Geient PPG-EMW at b335* Daily Report Does Not Corrflnn rorms Lion Break to 16.0 11'G-UAW at 6,375' 6.010 7,00C. ...-- I I $.0tit 1 28 I P ' . , • • Composite MW Plot Mud Weight(PPG) 8.0 8.5 9.0 3.5 10.0 10.5 li.O 1000 ...-. ._. ._.�. .�w 2000 ago - —Itter-Mud Weight Plot ,.. 4.000 • • -. . . t 5000 - — - Ga0[! -----•• --. . 7000 R.4:1oo • I _Cp9k In t.Erler;y Composite Frac Gradient Plot Equivalent Mud Weight iPPGI 8,u 1U.D 12.Q 14.0 16.11 i.i;Co 1,404 - 3,004 -Otter Frac Gradient Ltsco --- — t i 5.000 6,00, 7,04? 30IPage • 0 I Casing Program MD(ft) Connection € API Ratings Casing -Weight Grade Hole Size I _ Size (Ib/ft) (inches) (in) 0.D. Makeup Burst Collapse Tension Top Bottom TypeTo(inches) (ft rqlbs) (psi) (psi) (kips) 10 3/4" 0 •200%- i' 45.5# L80 BTC 11.46 N/A* driven 5210 / 2470 1040 7" 0 2,000' 23# J55 LTC 7.656 N/A* 8 1/2" 4360 ✓ 3270 366 4 1/2" 0 7,000' 11.6# WT80 LTC 5 N/A* 6 1/8" 7780 4' 6350 267 Comments: *The make-up of the buttress connection will be to the proper mark. Make up and Bakerlok all float equipment to joints prior to running in the hole Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (lb/ft) (TVD ft) Set Pressure (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) 7" 23# J55 2000' 9.8 15.7 8.8 3567 3.1 3.2 7.8 41/2" 11.6# WT80 7000' 10.2 16 9.8 2687 1.7 2.7 3.3 Comments: 31 IPage • • • Maximum Anticipated Surface Pressure Casing Size Setting Depth MAWP* MASP** (in) (TVD) (psi) (psi) 7" 2000 3000 3567 4 1/2" 7000 3000 2687 *MAWP = Maximum Allowable Working pressure**MASP = Maximum Anticipated Surface Pressure Well Control and Casing Design Calculations Surface Casing: T" (2,000' MD / 2,000' TVD) Collapse 9.8 ppg mud wt at setting depth-evacuated = 9.8 ppg x .052 x 2,000' = 1,019 psi Safety Factor = 3270 psi / 1,019 psi = 3.2 Burst(c Surface a) Frac Pressure @ Csg Shoe = (15.7 ppg + 0.5 ppg)X .052 X 2,000' -(.1 psi/ft x 2,000') = 1,612 psi - 200 psi = 1,484 psi b) Surface Pressure = Max Pore Pressure- Gas Gradient x next Casing Depth = (9.8x.052x7000')-(0.1 psi/ft X 7000) 356Zp -700 psi C:2867 psi t Use lesser of a or b = 1,484 psi Safety Factor = 4360/ 1,412 3.08 Tension no buoyancy, hung in air = 2,000' x 23# =46,000# Safety Factor = 366,000/46,000 = 7.8 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst)-(Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 4360 psi)-((9.8 - 8.33)x .052 x 2,000')) MASCP = 3335 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 32 IP age • • 4 %" (7,000'MD/7,000 TVD) Collapse 10.2 ppg outside, = 10.2 ppg x .052 x 7,000' = 3713 psi Safety Factor = 6350 psi /3713 psi = 1.7 Burst Cad Surface a) Frac Pressure @ Csg Shoe = (16.0 ppg + 0.5 ppg)X .052 X 7.000' - (.1 psi/ft x 7,000') = 6006 psi - 700 psi = 5,306 psi b) Surface Pressure = Max Pore Pressure- Gas Gradient x next Casing Depth = (9.8 ppg X .052 X 7,000')-(0.1 psi/ft X 7,000') = (3567 psi)-(700 psi) = 2867 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Use lesser of a or b = 2867 psi Safety Factor = 7780/2867 =2.7 Tension Hung in air = 7,000' x 11.6# =81200# Safety Factor = 267,000/81200 = 3.3 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst)-(Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 7780 psi)- (10.2—8.3)x .052 x 7,000') MASCP = 5532 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 33IPae. • Logging Plan Open-hole Triple Combo Logging services(Gamma Ray,Neutron,Density and Resistivity). Estimated open-hole logging interval from TD of 7000' up to surface casing depth of 2000',and continue logging Gamma Ray and Neutron services to surface. • C Mud Logging Plan c aI Mud loggers will cat 0' ' ch samples and maintain a wet and dry cut. Samples to be sent to state as required by regulations. 34IPage • • Drilling Fluid Program Otter #1 Drilling Fluids Program Surface Hole 157'-2000' Mud Type: AQUAGEL Spud Mud Mud Properties MD Density Viscosity PV YP 10 second Gel(Ib/100sf) pH API Filtrate (cc) l 10- 40- 157-2000' _948=93 80-150 30 25 10-18 unrestricted Production Hole 2000'-70 0' /^" `/W` Mud Type: 2% KCI/EZ MUD Mud Properties MD Density Viscosity PV YP 10 second Gel (Ib/100sf) pH API Filtrate (cc) 13- 8.5- 2000'-7000' /11.0 40-53 6-30 20 8.5-9.5 9.5 <5.0 � � . 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 351 , • • 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 lined secondary containment area with approximately 3,000 bbls of total waste storage capacity. A minimum of 24"of freeboard will be maintained at all times. The area will be covered with a secured tarp or other similar impermeable material to prevent the accumulation of precipitation. 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. 36IPage • • Cementing Program Otter #1 Cementing Program Surface Hole 157'-2000' Casing Type: 7", 23#,J55 LTC Mud Type: waterbased _ Final MD Density TOC PV YP Setting Compr Volume (bbl) time Strength (psi) Type 1 Gas Tight 12.0 0' 9 14.0 0.2 2500 94 Weighted Spacer 10.0 0' -- 4.8 24 *Weighted spacer:24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg Volume Calculations 157 ft x 0.27 wi 0 excess = 42.8 cf 27 cf/ft th 1,843 ft x 0.12 wi 100 excess = 468.1 cf 68 cf/ft th 80 ft x 0.21 wi 0 excess = 17.2 cf(inside pipe) 48 cf/ft th = 528.1 cf TOTAL SLURRY VOLUME = 94bbls Fluid Specifications Fluid Volume Vol Fac Amount and type of Cement (cf) Slurry 528 2.12 = 249 sacks Type I Cement+0.05 lbs/sack Static Free+.2% bwoc R-3+2%bwow Potassium Chloride+25%bwoc LW-6 +0.6%bwoc CD-32+1 gals/100 sack FP-6L+0.25%bwoc Sodium Metasilicate+0.9%bwoc BA-10A+5%bwoc MPA-1 +69.3%Fresh Water Displacement 73.5 bbls Drilling Mud @ 9.3 ppg 37Ipage • Production Hole 2000'-7000' Casing Type:4 1/2", 11.6#, WT80 LTC Mud Type: waterbased Final MD Density TOC PV YP Setting Compr Volume (bbl) Time Strength (psi) Class G Slurry 13.5 1500' -- 2.1 0.2 2200 128 Displacement 10.2 0' 9.0 14.0 105 *Weighted spacer:40.0 bbls SealBond w/3%KCL+ 19 lbs/bbl Potassium Chloride+ 123.7 lbs/bbl Barite -Sacked @ 11 ppg Volume Calculations 500 ft x 0.10 wi 0 excess = 52.2 cf 44 cf/ft th 5000 ft x 0.09 wi 40 excess = 659.2 cf 42 cf/ft th % 80 ft x 0.08 wi 0 excess = 6.8 cf(inside pipe) 54 cf/ft th % = 718.2 cf TOTAL SLURRY VOLUME = 128 bbls Fluid Specifications Fluid Volume a Vol Fac Amount and type of Cement Slurry 718 1.84 = 391 sacks Class G Cement+ 10% bwoc BA-90 + 0.005 lbs/sack Static Free + 2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L+ 0.5% bwoc Sodium Metasilicate + 82.3% Fresh Water Displacement 105.3 bbls Drilling Mud @ 10.2 ppg 38IPape ' � • • Bit Proposal Bit Summary Interval MD (ft) Size (in) Type IADC Surface: 0-2000' 8.5 Toughcutter 117M Production: 2000'-7000' 61/8 PDC M433 39IPage , _ ! • 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(8 1/2") 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 Otter#1 exploration well is located on a logging type road 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 accessway. AOGCC Regulation 20 AAC 25.035 (8) connections attached directly to the wellhead, tree, or BOPE must be flanged or hubbed; Cook Inlet Energy requests a waiver due to the low expected pressures and the short exposure time. 40IPag • II � 2 T13 CI M!J N C 15 > G L- 2cC O -mO 0 o N i I O ++ r N • L r'" ` _ �: r WO o N — oo N a C O Ce N O. •� 0 N wT o w (iw ;. fa 9' r ��� U UcnV) > 4 r x to to 4 m 4_ _ X 0 r fn U wce m w � � �Jw I >- U c Z� co rc5 II x z N w Y ( •! -_ N i .. `.. _.._.. _ 0 H ll CU \ ---- • + a i SCO V re 0 LJJ a an i o w Z O Cif W �- r �� aJ 41 — --1- .A-c4 3 M 4mA CU 1 Q F-Li _.I J mm V N N C • O 1 414 '- W N .10 ON ..- / o mN'' _. ______.. L r Vf a !` to., T eN+i fr� 17: al +..1 to 7, GJ 1 O XI .r. W --- f6 si Z 1 � , o zY w 1 ,r 00 41) w' �Iu z_ O�. LL aJLLo 8u. ,-;•_ V lu ,t `4t g. i u, Li LL V V LI.. I LL Z Z • o ,..-,,oo . LL= Ug - — Of'� ,(28v O 6 o 12 V, 2 Uo-Q d - t 7{ l7�_ 5 . 0O ULL Uo00�6 0$ w O. o 1 a I • • Pretty Creek State 1 Ale-S 1iro-- � // 17404100 502832004300 ,j/eare4 Gve!/ Notes from Well History and Mud Log -,Z1-- Spud 12/16/74 TD reached 2/6/75 i Completed/Suspended P&A 2/19/75 . Current Status P&A 1 Current Pool None KB 316.5' I Ground Level 299' I Base Permafrost TD 6570' MD 6570'TVD ; -6254'TVDss Producing Formation None Producing Intervals Perforated Intervals 6009'-6014' MD 'TVD -5692'-to -5697'TVDss Summary PC St 1 is a vertical oil exploration well that began drilling on December 16, 1974. 13-3/8" casing was set at 2255', 12-1/4" hole was drilled to 6450', and the well was logged, including 86 sidewall cores. 9-5/8" casing was set at 6430'. The well was drilled out with an 8-1/2" bit to 6477', then cored from 6477' to 6504'. Twenty-seven feet of core were cut and 25' were recovered. The core consisted of black, carbonaceous shale. While drilling at 6570', the drill string became stuck. Fishing operations were unsuccessful, so the well was plugged back to 6283'. The well was then perforated from 6009' to 6014'. Two DSTs were attempted, but only 210' of gas-cut mud were recovered. The operator concluded that the test was of a limited reservoir. The well was then plugged and abandoned on February 19, 1975. The well completion report states that this is a dry hole. Index Map LEWIS-IVER D-01W. ,,,,,,LR D-01 H L01 OLRURUC-C-OIR. IS RIV�1 0 Ag. •RETTYCK ST 1 MOMS ISRIV 13-., II LEWIS RIVER 8-01 Im ABA ISRIV 1 I p HANNA 1 N PRET CK 1 XX SW:.8 Pretty Creek State 1 March 9, 2012 1740410 Page 2 Well History and Mud Log Summary Report Notes Mud-logging operations began at 175', and methane gas was present in the mud from that depth to the total depth of the well. Ethane is recorded sporadically in association with coal beds between 240' and 550', and again from 2,150'to the total depth of the well. Propane occurs sporadically from 3,175'to the total depth of the well, and butane is recorded from 5,500'to 5,530' and from 5,940'to 5,950'. The mud log records sandstone between 2,750' and 2,810' that contained a trace of spotty dull gold fluorescence with faint crushed cuts, but no solvent cut and no visible oil staining. Cl and small amounts of C2 are associated with this trace show. A "trace" oil show is recorded in coal from 3,685' to 3,690'. It is described as consisting of a trace of tarry oil stain with dull gold fluorescence and bleeding solvent cut fluorescence. Associated gases were Cl, C2 and C3. Another trace oil show is recorded in sand between 3,755' and 3,770'. That sand displayed a trace of dull gold fluorescence in association with a slight trace of tarry oil stain. Only Cl is associated with this show. A sand encountered between 3795' and 3825' MD was rated also as a trace oil show by the mud logging geologist. This sand displayed spotty dull gold fluorescence, slow, bleeding milky-yellow translucent florescent cut. The mud logging geologist interpreted this occurrence as "probably dead oils." Only Cl is associated with this show. Sandstone between 4020' and 4025' displayed a faint trace of dull gold fluoresce and a trace of staining, with no visible solvent cuts. Cl and C2 gases are associated with this trace show. Coal from 5,490' to 5,525' displayed scattered dull gold fluorescence and slow bleeding cut fluorescence. Associated gases were Cl through C4. A lithologic description between 5960' and 6010' reports sand, very fine to coarse, with poor cut fluorescence.Associated gases were Cl through C4. Another lithologic description between 6150' and 6210' with trace shows marked from 6190' — 6200' and 6220' — 6225' reports sand, fine to medium-grained and calcite cemented that displayed bleeding cut from scattered tarry oil specks. Associated gases were Cl, C2 and C3. The well completion report notes that a total of 102 sidewall cores were taken, but no lithologic descriptions or analytical results are found in this well history file (such information was not required by AOGCC prior to 1986). The well was perforated from 6,009 to 6,014',and DSTs 1 and 1-A were conducted on that interval. DST 1 yielded a small amount of gas to surface that burned with 8 psi on 11/64' choke. DST 1A was conducted for 1 hour and 25 minutes, and it had a light blow, but no gas to surface. This DST recovered only 210' of gas-cut mud with no mention of other fluids recovered. Initial shut in pressure was 2405 psi, and final shut-in pressure was 982 psi. The operator concluded that the test was of a limited reservoir. The well was then plugged and abandoned on February 19, 1975. This well is judged to have encountered only trace amounts of residual, immobile oil. Based on mud log and well test information, PC St 1 encountered methane, ethane and propane gas and some small amounts of residual oil. Commission records do not indicate that PC St 1 encountered any movable oil. AOGCC 410 Pretty Creek State 1 • March 9, 2012 1740410 Page 3 Well History and Mud Log Summary Report Formation Tops Formation/Marker Top MD Top TVD Top Subsea Source 13-3/8"Surface casing 2255 2255 -1938 Operator 9-5/8" Intermediate casing 6430 6430 -6113 Operator Kenai Fm. 6570 6570 -6253 Operator Test Results DSTs 1 and 1A Production Tests Perforations 6009'—6014' Test No. Formation Top MD Top TVDSS Base MD Base TVDSS Result 1 6009 -5692 6014 -5697 Gas tstm burned with 8 psi on 11/64'choke 1A 6009 -5692 6014 -5697 Light blow, no gas to surface; rec 210'of gas-cut mud Mud Log Gas Occurrences Type MD TVD TVDSS Mud Wt(ppg) First significant Cl in mud 350 350 -33 9.2 First C2 350 350 -33 9.2 First C3 3185 3185 -2868 9.8 First C4 5500 5500 -5183 10.5 First C5 - First C5+ - Shows I I Mud MD Formation Rated Lith Stain Sample UV Cut Visible Resid Assoc. Wt (ft) Fluor Solv Cut Stain Gases (ppg) 3685'— Trace Coal Tr tarry Dull gold Bleed C1-C3 10.0 3690' oil stn 3755'— Trace Sand Tr tarry Trace dull Cl 10.0 3770' oil stn gold 3795'— Strong Spotty Milky 3825' trace Sand dull gold yel slow Cl 10.0 bleed 5500'— Trace Coal Scatt dull Slow C1-C4 10.5 5515' gold bleed Scatt 6190'— Trace Sand tarry oil bleed C1-C3 10.7 6200' specks AOGCC Pretty Creek State 1 March 9, 2012 1740410 Page 4 Well History and Mud Log Summary Report Mud Weight Record MD Weight Comments Lithology (ppg) 300 9.2 750 9.2 300 units gas at 1235' thin coal 1150 9.2 j 150 units gas at 1405' coal 250 units gas at 1525' thin coal 1600 9.5 180 units gas at 1705' thin coal 1900 g 6 13-3/8"Surface casing at 2255' thin coal 280 units gas at 2390' 2264 9.7 Wireline log at surface casing point 2650 8.7 400 units gas at 2705' coal 2800 9.3 450 units gas at 2820' thin coal 2910 9.4 3000 9.8 3165 g g 450 units gas at 3175' coal 1200 units gas at 3380' thin coal 3400 9.8 1200 units gas at 3425' thin coal Trace show 3685'—3690'; 140 units gas;C1-C3 sandstone 3610 10.0 Trace show 3755'—3770'; 15 units gas;Cl Strong trace show 3795'— 3825';40 units gas;Cl 1900 units gas at 4085' thin coal 3900 10.0 400 units gas at 4115' thin coal 800 units gas at 4140 coal 4155 10.0 400 units gas at 4520' thin coal 4410 10.2 2600 units gas at 4705' thin coal 3250 units gas at 4745' thin coal 4850 10.1 3250 units gas at 4925' thin coal 700 units gas at 5085' thin coal 5040 10.2 400 units gas at 5135' carbonaceous shale 400 units gas at 5225' thin coal 5230 10.3 5355 10.3 1160 units gas at 5425' thin coal 5460 10.5 Trace show 5500'—5515';3000 units gas;C1-C4 coal 5755 10.5 400 units gas at 5790' coal 150 units gas at 5805 shale/sandstone 5769 10.5 Wireline log 5810 10.6 550 units gas at 5945' sandstone 6000 10.6 580 units gas at 6090' coal 6100 10.6 200 units gas at 6160' sandstone Trace show 6190'—6200';50-230 units gas;C1-C3 sandstone 6155 10.7 460 units gas at 6315' coal 6330 10.7 6415 10.7 1080 units gas at 6405' coal 9-5/8"casing at 6430' 6430 10.6 6450 10.6 Wireline log at intermediate casing point 6475 11.2 AOGCC • Pretty Creek State 1 March 9, 2012 1740410 Page 5 Well History and Mud Log Summary Report Cores Conventional Cores None MD Range (ft) Cut Recovered Description 6477-6502 25 23 Shale, carbonaceous, dark black,fissile, slickensides, 2' coal, black, highly fractured Sidewall Cores 102 taken, no analyses in well history file MD (ft) Formation Poro Perm Oil Sat Water Description (%) (md) (%) Sat(%) Intervals with best permeability Mean Perm Range MD Range(ft) Formation Perm (md) Description (md) Specialized Studies Depth Ro Ro Max AOGCC • • _ 'Cook Inlet Energy_ April 19, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 ECEI V Anchorage, Alaska 99501 APR �� 19 2012 Re: Application for Permit to Drill Cook Inlet Energy, LLC: Otter#1 OGCC Dear Ms. Foerster, Cook Inlet Energy(CIE)hereby submits a Permit to Drill application for its gas exploration well, Otter#1 located on CIE lease#390579, approximately 10.5 miles north of Beluga. The well is planned as a straight hole with a total depth of 7000'. 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 waiver request to use a 12"diverter line instead of the 16" diverter requirement according to 20 AAC 25.035 1. This is due to the slim 8 1/2" surface hole. Also a waiver is requested for AOGCC Regulation 20 AAC 25.035 for the use of threaded line pipe on the wellhead due to the low expected pressures and the short exposure time. In Addition, CIE requests confirmation that a Sub-Surface Safety Valve is not required for this 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 May 1, 2012 iV If you have any questions,please contact me at(907)-433-3804. /"V Sincerely, 4/ LLA9 p){ David Hall CEO—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax STATE OF ALASKA RECEIVED ALA OIL AND GAS CONSERVATION COMA/RION • 4 APR 1r 012 . PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1c.S.elk 6 Cganed for: Drill ❑� Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone A.7 Coalbed Gas ❑ Gas Hydrates ❑ qc Re-entry ❑ Exploratory EService- WAG CIService-Disp Elto,4.0 r ` • r2 Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket �/ Single Well )4.Well Name and Number: COOK INLET ENERGY,LLC Bond No. 61212870 /4.4 'z OTTER WELL#1 3.Address: 6. Proposed Depth: 12.Field/Pool(s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7000' TVD: 7090' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number EXPLORATORY Surface: 2081'FNL 1805 FEL SEC 12 T14N MOW SM AK 390579 Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: N/A 5/1/2012 Total Depth:2081'FNL 1805'FEL SEC 12 T14N R1 OW SM AK 9.Acres in Property: 14.Distance to Nearest Property: 5760 1805' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation abbve)SSL: 174.8 feet 15.Distance to Nearest Well Open Surface:....Y.--26T5547-7 y- _.1.46-7-26713n-y Zor 4 GL Elevation abbve MSL: 160 feet to Same Pool: N/A 3z---7 41 a/9 ,i- .2-4-15-7- i7 ,,O> V,q,/•z, /, N. 16.Deviated wells: N/A Kickoff depth: feet 17.Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole 3567 psi Surface: 2867 psi 18.Casing Program: Specifications t/- Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length Ll /. TVD MD TVD (including stage data) 13 1/2" 10 3/4" 45.5# L-80 BTC 157' '.1 0 0 157' 157' driven '' 8 1/2" 7" 26# L-80 BCT-M 2000' 0 0 2000' 2000' 249 SXS,12.0 ppg 6 1/8" 4 1/2" 12.6# L-80 IBT-M 7000' "'� 0 0 7000' 7000' 391 SXS,13.5 ppg 19. PRESENT WELL CONDITION SUMMARY • 49completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(`nea f -r Effect.Depth MD(ft): Effect.Depth TVD(ft): Junk measured): Casing • • • S4 4/ ; Cement Volume MD TVD Conductor/Structural Surface ' _ Intermediate Production t • r Perforation Depth MD(ft): S x' Perforation Depth TVD(ft): 20. Attachments: Property Plat ❑ J�OPSketch 0 Drilling Program 0 Time v.Depth Plot ❑✓ Shallow Hazard Analysis .,/Dtverter Sketch 0 Seabed Report ❑ Drilling Fluid Program Q 20 AAC 25.050 requirements Q 21. Verbal Approval: Commission Representative: Date 16-Apr-12 22. I hereby certify that the foregoing is true and correct. Contact Courtney Rust 433-3809 Printed Name David Hall Title CEO Signature j /-,./,;,%9 Phone 907-433-3804 Date 4/16/2012 Commission Use Only Permit to 1 '147 F API Number:50- - --206 3 )-CO Date: requirements.Approval for other Number: 2 fZ C . Conditions of approval: l ibox is checked,well may not be used to explore for,test,or produce coalbed meane,gas hydrates,or gas contained in shales: V / Other: / Samples req'd: Yes[ No Mud log req'd: Yes Fr No ❑ F HZS//measures: Yes IE.No❑ Directional svy req'd: Yes ❑ No 4f- /, .4 7IC1r ✓ v/`itut-.7S'et. -L,.:y l Lel i '•� .Z .*lc Z.S: 5 u L% ./-.b /V-/2- f APPROVED BY THE COMMISSION 9 DATE: ,COMMISSIONER ORIGINAL 4 /z- Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate y L • • 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 As built rig and diverter line set up 13 Wellhead Schematic 14 Geo-Mechanical Plot 15 Shallow Hazards Analysis 16 Seismic Information: Confidential 22 Background Information 25 Casing Program 31 Casing Design 31 Comments: 31 Maximum Anticipated Surface Pressure 32 Logging Plan 34 Mud Logging Plan 34 Drilling Fluid Program 35 Solids Control and Equipment 35 Drilling Waste Storage 36 Cementing Program 37 Bit Proposal 39 Regulatory Waiver and Special Procedures 40 3 ( Page • I Location Schematic --N _ fr"---- -....-_—_ ---. f _ ______ Prolract0d Seclion Lino SEC 12 14N RIMY SRI Ai< g SCOLE E FEET MD 101111 I i I ft 1 ROMS I.SI=Of FICRIZCSITM.NW i VERTICAL CONTROL INAS DETERIANED RYAN NOS CPUS SOLUTION FROM CONS NW STATIONS IRENE FM =Or'MA PI m Amor NO•AA4C2 SI ND CLAW COMERVED KIM ON MO coma PONT 21 ;MP MOM a. ZONE 4 EPOPI xix CIATUM BEING Ik 2ITSMT.121 E 141T217.15311 ELEVATION;VLSI NAVONA DOOM `..., 2)MM/1 ENE OFFSETS DETERMINED _ FROM TFIE PROTRACTS)MICRON — "--- —\ CONNOR VALUE& iktb s)CONPVICON vIERMON AAA svAS UIED FOR ORTUM OONVERSION. A \ -11° 'rt EL-OTTER 01 180S1 N. '''- / "--, I 1 • ' ••., Jim- .?1(hIFF \ Mt. 44.11tram. pro‘..,.."SP47 -.110bAtito•-•"' 4,, '\ OTTER 419. 2 It\ N:2675742.563 E:127463.370 '!•:;-„, LAT: 6119'12.175N ...::' LONG:150930'KE1127W \ *-.'-i. .T7E% NO. 1 \ \ ASP ZONE 4 N.A1:127 \ N:276720.301 ELEV. 160.0' NA1/086 \ \ E:3274,39.010 \ \ LAT: 611911.953N \ , \ , L1314M 1605555.404-W \ ' \ '.„ \ N. ., \ ASP ZONE 4 NADU ELEV. 1E10.0' NODES \ \ 1 , maw OHER WEIL PAD COMPRUCTION U13". PROTRACTED SEC..12 111111114t.II 714N,RI UK 3M,AK Wit=It , 1011111111111/1t MI pas. LICUVIE CONSULTING INC. rumen PROPOSED QTTER WELLS NO.1 4.2 ACM V.111110 opmemene-Timm rrwirr ASSTAKE0 SURFACE LOCATION DIAGRAM mow= Mfg 4 MIIIINIVINN-110141101 IMAM= wilsig.1141k , *di..111.41060. insemeolum. /mom COOK IPILET EPERGY MINT motammuni P.CL Eat 101134 1 se 1 ompurosami Grumillig lac 11•1111.110.1111011M11 ANC/DRAM,M IMMO 4IPage • r Drilling Procedure Pre-Rig Work A. Drive 10 3/4" conductor to minimum of 157' or refusal. Preheat and Weld on Vetco Multibowl 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 Reserve 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. g, c Wr /2-4 r� 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 8.5"TC11PC Tuff Cutter Tooth bit and BHA. Run in hole. Clean out conductor. Spud well. 6. Drill 8.5" hole to 2000'taking single shot surveys every 500'. Make wiper trips as required. 0 i' 5,/,- 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. 8.5" 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. 5 � • • 8. Have the Mud loggers drop carbide that creates acetylene gas and shows up as a gas show to determine hole volume. Circulate bottoms up. Pull out of hole. Run back to bottom on ANY signs of swabbing. Note: Open hole logging is not anticipated in this hole section. 9. Rig up Weatherford. Run 7" casing float collar 40' above float shoe. Run and space out 7" 26# L-80 BTC-M casing with +/- 10'of rat hole. Rig up Cement Head. Circulate minimum of one tr bottoms up. Reciprocate pipe If hole conditions allow. Have safety joints with crossovers made up for 7" casing near rig floor. 10. Land casing hanger in starting head. Cement 7" 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". I, 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 1/8" SKH513D-B1C PDC Drill bit with Steel breaker plate attached, BHA and RIH to shoe. Test 7" 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 l i system. Perform FIT according to CIE procedures. .The minimum leak off test is 12.5 ppg and anticipated is 15.7 ppg 16. Drill 6 1/8" hole to 7000'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 10.6 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 Baker Atlas Triple combo log as directed. Rig down Atlas. 19. Run back in with 6 1/8" 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 up er rams to 4%". Vi3tZ5 ;n,+ ` f jj 3"5 21. Rig up and run 4 1/2" 12.6#L-80 IBT-M casing. Install float collar two joints above float shoe. Space out hanger. Pickup landing joint and cementing head. Rig up and Circulate minimum two bottoms up. Reciprocate casing during circulation. Have safety joints with crossovers made up for,, %2"casing run. 22. Cement 4 1/2" casing. Reciprocate pipe during cementing if possible. 23. Land 4 1/2" casing hanger. Test hanger to 3000 psi. 24. Rig up eLine. Make gauge ring run to TD. Wage • • 25. Run CBL from TD to TOC. Evaluate log. Note: Ensure 24 hours set time on cement prior to running log. 26. Perforation and completion plan to follow. 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. 7 a ., • • Proposed Wellbore Diagram Cook Inlet Energy Otter #1 Proposed Wellbore Diagram :t KN. ••% '\ ;% ma4z ",45 5#&a$BTC j @157 MDz�D OD=9.95)o Driven ) v. \ K 4 . 4 v A $ I Chemical injection mandrel $ ; ƒk why control lines $4 � 2-3/8",4#,L-80,EUE Tubing(Coupling OD=3.063") 1 4 v. . } % 4 $ ƒ 8 1/2"Hole 4 K 4 % $ k 4 % $ k 4¥ % 21mE�c ®¥ % ) A ® %r ® a %� 7t2 &a%e&M \ k @ 2,00E MD/�D OD=6.151") NA : A / Iv ■ a E. \ 6 1/8"Hole 7 \ si F A / 41/2 , 2 & .6#, B¢ e� -V (Drift ID q.23") @ 7000'MD/TVD 812 < . . • Time vs Depth Plot Otter Well Proposed Time vs Depth o' 10 3/4"Casing at 200' (45.5#, L-80, BTC), driven 1000' Drill 8.5" hole 1 1 2000' a-Casing-at-200 .7#,-L-80-,-BTC) d # a 3000' . a -0 4000' a L CO C1 CO 5000' Drill 6 1/8" Hole 6000' 7000' 4 1/2"Casing at 7000' 8000' -- 0 5 10 15 20 25 30 Days 91Page • • BOP Sketch nnnnnnn 11" 3000# WP BOP 32 7/8" C i .� yc j „ V8iQ PIPE RAM 1.74 29 3/8" 1 1 BL..IND RAM 1 " 1 24" ----lb. 6 6 ,,,ir. ...,,.....„--L____,-, ,„--,--,_ 11.00 + 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 _ _ 10 Page • s BOP Equipment 8.5"Surface Hole While drilling the 8.5" 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 1/8"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. 11 Wage • • Diverter Sketch Surface - Diverter Line Rip Floor Flow Nipple ADM lax 1'Yevelfler SLZE 11"Shaffer 3111 1-11I--I C5, R2•rtal 4..0.0„0".....<00.-1 w 74 T i-10: :r',8'r:. 2 I 35-5;. Sfi 3 12` 1 d' a c':—re:aJ.e 12"156 .%'JSI +►� 2 Bluse Line 12' 141‘.f+of 12"0.37E'Wall Pipe C ' .T .-,3 13-512 52i lErs&swasae err err ..0.12"561 Wellhead ]:' S.�:f� �/ Gnovnd Lerdl t s . I.`% ------- r` ------------- ------------------- 12IPage • ! As built rig and diverter line set up NORTH) !Mei , LI*----0,...? li 1 # '''* ''" 11 \Il i# 3r \ \ 401• 41+ \Y ,,1 \ 4 42 .10\eb\ 7. /'� \ 4.\\•6\k4I‘'es..,6^'Y . � • 11'o C`, , r}: s ••\ �' \\". .\ � ter' �'�i" s ,,,/,'," ,rN:',•'„, /' �. t� ri, ,� `\rr /' /r, \\<:d',//•Fe yo- ,�3�/?� OTTER WELL PAD CONSTRUCTIONPROTRACTED SSG'.12 oxz �: T14N.R1tart,. M1,AK \ 610E 4VE CONSULTING BPO(, n spa OTTER WELLS NQ.1&2 'ra:a WIuu crnxo-tet,. RIG ORIENTATION RIG 34 asxr Rn ,,. h1 lg_. .u.eaaa® JOB,INLET ENERGY ;. , _ ,c c.ranLHr� PD.BOX 10tka c na amasaas e4nsuL.tkf Ine x,r4C.4,42L,�car t __ XM(IUFACE,M 365179 LET ”' 1 i 13Page . 1 1 • • Wellhead Schematic GE Oil &Gas I—,..„ . ,-, 7 :..,. 4., , . --- - '••••;" 1.9.. Mr I :.•••C W ..-. r II 1 •,.-I. I L.- , z!r.• [Ca- ' in 1 /All iii ril 0 Vo. z2:• 1 ' 0 ___.. • ' MN l t IA I.!, VI.41-1,1vikl-v=yak,'G:1:4,,I.tau 1'1...m::::I.-1..1'4.1i 40,0,,enel e..eild,1,010.rel....4nn roviond h rrl RA COOK INLET ENERGY LLC i ii.1o..t 1.•a.I..r.tin&rl yf ka....4...1 al NA.!sr n ei).;•e*:,-A...1....1=',IN...;k1,....*=CA la tfk 1.*...........i... OTTER#1 IT1 I OO- /4"x 7-518"x 5-11.2"x 2-7/8"5M LSI-I/ConventionI IF 10FEB-12al I IWellhead Assembly.With T-EBS Tubing Head; T-M4O-CCL ,-...,..,...It;PI:I I Pi 7 Tubing Hamar and Adapter Flange clKe.fric.p,o. AE21399-A 14IPage . . i ! Geo-Mechanical Plot Otter Proposed Geo Mechanical Plot Equivalent Mud Weight(PPG) 8 10 12 14 16 18 20 0 Sterling 950'+/-950' 1) 3/4' 1000 2000 __. ..._.. _... _ -- Beluga 2735'+/-256 ' 3000 — --- — Calc Pore Pressure . 4000 u. t a W Mud 13 5000 - Weight (Pore Press. +Drilling 6000 — margin) Tyonek 6500' Frac 7000 �� Gradient .54?-24' `�y 8000 ._ __._..__._ ....__..._... 9000 15IPage Shallow Hazards Analysis Shallow Gas potential Otter Prospect Area A thorough review of all wells drilled within five miles 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 with shallow gas have been identified from these 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. One shallow anomaly is apparent on line No. 10 corresponding to a depth of approximately 1200'. This anomaly is approximately.6 miles west of the proposed well and is not apparent in close proximity to the drillsite. Texas International Petroleum's Pretty Creek St#1 (2- T 14N R 10W was drilled approximately .9 mile immediately Northwest of the planned well to a depth of 6570'. The well was drilled to a depth of 2264' utilizing muds with a weight of 9.4—9.8 ppg with no shallow gas accumulations 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, appropriate care will be exercised while drilling this interval to insure adequate well control should a shallow gas zone be encountered unexpectedly. The package of high amplitude coherent reflectors range from approximately .7142 - .9 seconds at the wellbore. These most probably tie to near and within the Tyonek formation and are generally probably tied to the coal stringers seen in lwr Beluga and Tyonek formation. The events are not seen as strong on the dip line and are probably masked to some extent by the South thrusting fault shadow. The depth range for .7142 to .9 seconds is 3398' —4327' MD (3223' to 4152' SSTVD). CIE's geophysicist observed no other indicators in the seismic data that could signify shallow gas or geopressure, such as bright spots, coherency loss (dim spots), gas chimneys or time sags. But we would expect to see the same type of events on seismic that are indicating the normal Tyonek stratigraphy including sands, shales and coals. The stronger events are interpreted to generally tie to the coals. Coals across the basin generally exhibit stronger amplitude and better cohesiveness than normal sands, shales and sitstones due to the greater velocity contrast. The only anomaly's observed that we feel might be associated with shallow gas is the one on line 10 near shotpoint 11130 at around .28 - .3 sec. that has been previously identified. This event does not appear to underlie the area being penetrated by our wellbore and is not considered a threat to cause drilling problems in our planned well. 16II) age The drilling histories of the twelve previously-drilled wells closest to the Otter prospect were examined for difficulties encountered above 2,500'. The wells examined are: Well Distance from Otter Coffee Creek#1 Lewis River B-1 Pretty Creek Unit 224-28 North Tyonek State#1 East Lewis River 1 Lewis River 1-A Lewis River 13-2 Lewis River C-1 Lewis River D-1 Pretty Creek 1 Pretty Creek Unit 4 Theodore River PCU 2 These wells were drilled to various depths,all greater than 2,500',but none encountered significant difficulties in the surface interval. One well,the Lewis River#31-2,encountered some tight spots just above 2,500' but had no problem reaming them out. None of the wells experienced losses,kicks or indications of shallow gas in the surface interval. The offsetting wells were drilled using initial mud weights of 8.4—8.7 ppg and achieving 9.3—9.6 ppg by 2,500'. Conclusion Examination of the drilling histories of the offsetting wells and correlation of their geological sections with Otter using well logs indicate there are no shallow hazards to be expected while drilling Otter Prospect as long as mud weight similar to or exceeding those used in the offsetting wells are utilized. Well Information Casing Tops Plugs Texas International Petroleum 30"@ 41.5' Beluga 100' 55 Sx from TOF @ 6475—6283 Pretty Creek St#1 20"@ 145.8' Tyonek 3882' 60 Sx 6014-5900 API 50-283-20043-00 Permit#74-041 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 171Page I I • Forcenergy 20"@ 90'RKB Tyonek 700' 7,325'-7,900' Cement Plug 13-3/8"@ 1,219' Three Mile 6,756'-7,133'Cement Plug, Coffee Creek#1 RKB Sand 4,780' EZSV @ 6,800' API:50-283-20094-00 Permit No.97- 9-5/8"@6,715' Chickaloon 5,537'-5,785' Cement Plug, 219 RKB 6,630' EZSV @ 5,785' Mesozoic 4,009'-4,415' Cement Plug, Sec 19,T14N,R1OW,SM 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#1 20"@ 371'RKB Tyonek 6,550' 9,850'-9,950' Cement Plug API: 50-283-20052-00,Permit No.76- 13-3/8"@ 2,399' Middle Groung 31 RKB Shoals 8,312' 8,550'-8,650'Cement Plug 9-5/8"@ 8,557' 6,658'-6,710'Cement Plug, Sec. 10,T14N,R9W,SM RKB 6,710'-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 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.86- 076 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. 18IPage 410 • Well Information Casing Tops Plugs Cook Inlet Sand Phillips Petroleum 13-3/8"@ 322'MD 1,684' 4,831'-4,964' Cement Plug North Tyonek State#1 9-5/8"@ 1,321'MD Beluga 2,527' 3,931'-4,064' Cement Plug API:50-283-20040-00,Permit No.73- 16 7"@ 6,037' MD 3,724'-3,991' Cement Plug Sec.25,T13N,Rl 1 W,SM 3,079'-3,230' Cement Plug Location:695'FWL, 1679'FSL 2,702'-3,126'Cement Plug Elevation 227'MSL 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.75-6 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 10,678', 10,500',8,012' Elevation: 15' GR 9,646'to 11,625' 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 . I Cities Service 30"@ 48' Beluga 2,279' Lewis River 1-A 20"@ 363' Tyonek 5,864' Bell Island API: 50-283-20047-00,Permit No.75-5 13-3/8"@ 1,368' 9,142' Chickaloon Sec.2,T14N,R9W,SM 9-5/8"@ 8,147' 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.68-1 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 Well Information Casing Tops Plugs Upper Beluga Union Oil 20"@ 75' 2,700' Middle Beluga Lewis River C-1 13-3/8"@ 368' 3,500' API:50-283-20061-00,Permit No. 178- Lower Beluga 075 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' 20IPage 411 Cities Service 20"@ 359' Beluga 2,096' 7,135'-7,235'Cement Plug Lewis River D-1 13-3/8"@ 2,395' Tyonek 6,210' 6,180'-6,280'Cement Plug API:50-283-20068-00,Permit No.80- 141 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 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.201- 193 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 1 13-3/8"@ 2,032' 3,215'-3,450' Cement Plug API:50-283-20022-00,Permit No.69- 15 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. 21 gage S Seismic Information: Confidential ICS 33 34 35 36 31 32 3 110 1 b a 1t i111. 8 1c, 14worn 1? 1$ TUN MOW � I 4 19 Pow Or taett3eO CaliRDEDMAL PI:Vert Lane=Cele Sabi.:'i3113CE a s� f CM%Yeuxrisr a 5ffiltrnoc 3:or Ir; IMMO imus 22IPage • i J . " 6 Fli 1:1 z r .1 r4 f ,,,'Aft,""` . r ' I., 'te' I l: °f y).e;"4; ' ' rr.; ('�• /1 ,�ri I� :4' T 4 4'� elf./1't).1 Iry ' . •i ,y�'.i4 „ j t 0 P { ., , . ,{p t. r F r k�' Int. '�;Cli , . , # „ „I • a ii i . , 4 .4 ,, ' , ;'sok 1P i e.'t i• , , �4 k._, rl 'r'i. }'{4 i '' 5i •1 'I r Y d 1 Y J k "r I . Pi y • a a , b ii- a l ° P'r o' . '"-J.,CI ''t4.7,--$1-''' /y ri,y " �,"• �'71,4,7,7'-7,r1tr. � � � �'� � J' ..f1 r� ,��, eels„ 9 5 ll Y r � ��, 1i r . , , ,fit �,#,'.y ;`� �'. o Cr) 14 I` �r ' i k is t f11 d4 r•e41 A a P q 1 K r) . , , ,.. G, --ii , . 1 r ,i A'� f f .4,, t.t i, lir ,I.lat' _.„. 'i^ r :,�i r (� 1 �'I t ,.. - w @�` ! ,y.yrs} 1 d ' ' a 1x 4+'f r a 5 °, `6 E o IE1P4 `: vII �� I r[� Al I 94 ! `f°r- o OI1, 4 P 'l, g1 , 11'4. . I i • ',I,, ' ,4, ; I5 . If k liI I ;} it411 16 IP I 11 ¢1 Il f 4.5.. `rl, • i - • 1 i 1 1 It .y '. II � •ll it, 5. a t E. 'El Y; e •a e 1) • 23 Page 0 S ua z E. 4' H P ' .� a: tt irk.; , ,,4it 0'i 'Vt' 4� t l 4 , t i 1 y 1 1; i I. ,F ' A 4 ' I '' ` l ry/ T ` l , 4 r ' I • 4:r,, , r CI q tip ,� LC' . ,. ► 4. 1 • 1 . ' , > �� , , ik �� �, i LIJ t a 1 i, • • = rIMM , r ' t kW) r1 f.• 'y' IF ' '' r' e , 1t$ 1 0 A°: ,, r; t l i • '. l y , l' 1 O y111:C Cil .— CIQ ......1,....4i,,.......-,:-:.4 ;' 'Pt ,," '� ��A , A ..,.„.N: , ' 1 �, �,�! qtr = , , � �,. CC $t"ikriiiioftt' d r . 1� i5 .\ r t;,,!fl' 'q s y , ''' ,, y i:..' S�I 1 1. c�31� 1��� ;V ��z ; �'„ '. 'b a ft . lit„, y. F f r'`Y ' j k } 4 t4 If d ! I. f 1 'I41 i 1 1 {�� ,7119,t 1$ . , A 1 k fi r 1 .41� t^` 4% Y , 1 y 4 f qty •\ . ,..r., i'.t,•g'i'',,,ifitp,..'.:''43''-IV,,.-,,I”-v:A..:.'CN.,..".. sp.','$. u.\. .. ..\'\,t.$.,'':',A ,..,i ,,\: 1$ i'1 1 �s ' �.x'-11,. i ' , 1 t,. c o g' i ,,. . u _. 0. q r, n 6: t L. c S i 24IPage S 0 . . Background Information Pretty Creek#1 Sec 2 T14N R1OW Cook Inlet 0 , , , _r_. • I 1 5 t 1 :.....-,,,.• ..„--......-... . .. , -,1 ---1......... ..et.. .-. . 4 4 • 1 i . 1000 1— 1 I.4 • 4 • . 4 ' • '1- "•'.1' •-t''•-' -'''' ''•-'••""•••- 4-- ''("'--•''' 'I -.' "1-'• -*-• — ' • . ; I 1 2000- , , 1 ' f i I I 1 • • 3000 1 - -........: ....... . , a) as . ........ , ; f C3 P. t - i 4000 5000 Ill. • 1 i 4 . . . .. 4 • . r 5 , - • , 44..,, .. q , 1 ! ---:- ----.:-----:---;-- - - - ! I 1 I 5 1 . • ; • 4 t t 1 II . • I. 5 I 4 1 . 1 t 7000 I . 10.00 100.00 1000.00 Sonic Log Travel Time (us/It) 25IPage 0 • :' Cook Inlet Energy Otter Regional Temperature Gradient Temperature, deg F 0 20 4-0 50 80 100 120 140 160 180 ° I 111.111111111111111M11111 . . .4--- .U•.nUH I i.=' t r,• ad e M EE ��-: I " 1 fl1 .1 11 � 111.11 i 1■ 1■11� •� �� ��'2004 !L1 ! IUI! IIPJIEd 1 1�_� - --1�1111F_� �11 � 11 111u _■I. 1 1111 . 4........ -r 11 1 11 11111111111111111 � �' P e'L Cr--111111111111 ii1Hn � 111 4000 I : _ __:_._._ 1 I. 1 ■ .. ' 1= �r 1 1 � III - 111 111111111 1111 1111 1 I 1U11! ,lRN:r :AIN �1 �1 11 1 11 1 N ' 111 1U t]4D 1U! i. Ri.el- '3'- 11 11111 -.- II ' ' '- 1 111 111 !NMI 1UU ' I■ Eng s �sRi :rt� � � . 1 h� t ... LeWL ,� _ 1`. SUUO 1 1Ul1� Ri el Illir 11111011111101-__! X11111 111�� rim", . 1111 - . •E11 1U 111 1+r r loop 1 ■11 1�1 1 *i t.r .- - �ii 111ii111�11 M1 1ll - 111N11�11i111 1 111111 III I 1�1 11: : 841 ` ` 1111111111111111111RE �1 . .. 1 :: 1..................1. Irl nii• ' . ,.. 111 III11 1111U 11 I _ 111 I . H . . H II11UII11111 ' 14000 _ , . 26 Page • • Composite Pore Pressure Plot Mud Weight(PPG) 8_L1 8.5 9.0 9.5 10,0 10,5 11.0 2,000 _. 3,000 — Otter-Pore Pressure 4,000 5,000 6,000 s_.. ._ ..._ _ . • • 4,DOD • • Cook Irikt Er rax Composite LOT Plot Equivalent Mud Weight[PPG) i R.fi 1{}0 19.1 14l 16.0 1£,.6 72(1.0 11,0174. t-0 2,030 P'elty trcck Un 221-28 {LOT) r: Pr,e LLy Cr el Uni 14[LCT) _e a ) coffon Cripk 1 WIT} 5.UUU LOT Farr1 Confirms Formation Break to 16.U± Otter at GrJNient PPG-[MW at E..735' Daily Rcpart Does Not Confirm formation Brea ito16.0PPG-EMWat6..375' � 1a, • 7,0oc • _ -- 281Page • 11/ Composite MW Plot Mud Weight(PPG) 8.0 8.5 9,0 9.5 10.0 105 11.0 1000 ---- —• -- 2000 3 000 sitter-Mud Weight Plot ,-. two t ete 5000 -._.. ._ 60D0 --•••• MOD SOLICI 1 • • _ CQ91Inlet Energy composite Frac Gradient Plot Equivalent Mud Weight iPPGII • 8.0 10.1} 11.0 14.O 1G.0 l$0 1,006 �^ 3,004 '"otter Frac Gradient 1 4,030 � I a 1 I 6,000 7.000 JACO ^- ., 30IPage 0 0 Casing Program MD(ft) Connection API Ratings Casing Weight Hole Size Size (lb/ft) Grade inches (in) s Makeup ! Top Bottom Type G'D' Torque Burst Collapse Tension (inches) (ft lbs) (psi) (psi) (kips) S 1 t 3 10 3/4" 0 200' 45.5# L80 BTC 11.46 N/A* driven 5210 2470 1040 7" 0 2,000' 26# L80 IBT-M 7.65" N/A* 8 1/2" 7240 5410 604 4 1/2" 0 7,000' 12.6# L80 IBT-M 4.75" N/A* 6 1/8" 8430 7500 288 Comments: *The make-up of the buttress connection will be to the proper mark. Make up and Bakerlok all float equipment to joints prior to running in the hole Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (Ib/ft) (TVD ft) Set Pressure (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) 7" 26# L80 2000' 9.8 15.7 8.8 3567 5.1 5.3 11.6 4 1/2" 12.6# L80 7000' 10.2 16 9.8 2687 2.9 2 3.3 Comments: 31 IPage • Maximum Anticipated Surface Pressure Casing Size Setting Depth MAWP* MASP** (in) (TVD) (psi) (psi) 7" 2000 3000 3567 4 1/2" 7000 3000 2687 *MAWP = Maximum Allowable Working pressure**MASP = Maximum Anticipated Surface Pressure Well Control and Casing Design Calculations Surface Casing:T' (2,000' MD / 2,000' TVD) Collapse 9.8 ppg mud wt at setting depth-evacuated = 9.8 ppg x .052 x 2,000' = 1,019 psi Safety Factor = 5410 psi/ 1,019 psi = 5.3 Burst Cad Surface a) Frac Pressure @ Csg Shoe = (15.7 ppg + 0.5 ppg)X .052 X 2,000' -(.1 psi/ft x 2,000') = 1,612 psi -200 psi = 1,484 psi b) Surface Pressure = Max Pore Pressure- Gas Gradient x next Casing Depth = (9.8x.052x7000') -(0.1 psi/ft X 7000) = 3567 psi - 700 psi = 2867 psi Use lesser of a or b = 1,484 psi Safety Factor = 7240/ 1,412 5.1 Tension no buoyancy, hung in air = 2,000'x 26# =52000# Safety Factor = 604,000/52,000 = 11.6 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst)-(Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 7240 psi)- ((9.8- 8.33)x .052 x 2,000')) MASCP = 5639 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 32.IPaHge_ i • : 4 %" (7,000'MD/7,000 TVD) Collapse 10.2 ppg outside, = 10.2 ppg x .052 x 7,000' = 3713 psi Safety Factor = 7500 psi/3713 psi = 2 Burst Surface a) Frac Pressure @ Csg Shoe = (16.0 ppg + 0.5 ppg)X .052 X 7.000' -(.1 psi/ft x 7,000') = 6006 psi - 700 psi = 5,306 psi b) Surface Pressure = Max Pore Pressure- Gas Gradient x next Casing Depth = (9.8 ppg X .052 X 7,000')-(0.1 psi/ft X 7,000') = (3567 psi)- (700 psi) = 2867 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Use lesser of a or b =2867 psi Safety Factor = 8430/2867 = 2.9 Tension Hung in air = 7,000'x 12.6# =88200# Safety Factor = 288,000/88,200 = 3.3 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst)-(Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 8430 psi)-(10.2—8.3)x .052 x 7,000') MASCP = 6052 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 33IPage • 410 Logging Plan Open-hole Triple Combo Logging services(Gamma Ray,Neutron,Density and Resistivity). Estimated open-hole logging interval from TD of 7000' up to surface casing depth of 2000',and continue logging Gamma Ray and Neutron services to surface. Mud Logging Plan �� G r8,,� . acei Mud loggers will ca 30' s' ch samples and maintain a wet and dry cut. Samples to be sent to state as required by regulations. 341Page • Drilling Fluid Program Otter #1 Drilling Fluids Program Surface Hole 157'-2000' Mud Type: AQUAGEL Spud Mud Mud Properties MD Density Viscosity PV YP 10 second Gel(Ib/100sf) pH API Filtrate (cc) yo:fr10- 40- 157-2000' 80-150 30 25 10-18 unrestricted Production Hole 2000-700D' / `- /9 1-4-- Mud Type: 2% KCI/EZ MUD Mud Properties MD Density Viscosity PV YP 10 second Gel (Ib/100sf) pH API Filtrate (cc) 9 13- 8.5- 2000'-7000' 10.0 40-53 6-30 20 8.5-9.5 9.5 <5.0 6/. 5 /L -� . d-lit lZ� 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 __ _ _ 35II' age • • • 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 lined secondary containment area with approximately 3,000 bbls of total waste storage capacity. A minimum of 24"of freeboard will be maintained at all times. The area will be covered with a secured tarp or other similar impermeable material to prevent the accumulation of precipitation. 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. 361 age; S I Cementing Program Otter #1 Cementing Program Surface Hole 157'-2000' Casing Type: 7", 26#, L-80 BCT-M Mud Type: waterbased Final MD Density TOC PV YP Setting Compr Volume (bbl) time Strength (psi) Type 1 Gas Tight 12.0 0' 9 14.0 0.2 2500 94 Weighted Spacer 10.0 0' -- 4.8 24 *Weighted spacer:24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg Volume Calculations 157 ft x 0.27 wi 0 excess = 42.8 cf 27 cf/ft th % 1,843 ft x 0.12 wi 100 excess = 468.1 cf 68 cf/ft th 80 ft x 0.21 wi 0 excess = 17.2 cf(inside pipe) 48 cf/ft th = 528.1 cf TOTAL SLURRY VOLUME 94bbls Fluid Specifications �--� Fluid V(cf)e Vol Fac Amount and type of Cement Slurry 528 2.12_ = 249 sarkc Type I Cement+0.05 lbs/sack Static Free+.2% bwoc R-3+2%bwow Potassium Chloride+25%bwoc LW-6 +0.6%bwoc CD-32+1 gals/100 sack FP-6L+0.25%bwoc Sodium Metasilicate+0.9%bwoc BA-10A+5%bwoc MPA-1 +69.3%Fresh Water Displacement 73.5 bbls Drilling Mud @ 9.3 ppg 371Page • • Production Hole 2000'-7000' Casing Type: 4 1/2", 12.6#, L-80, IBT-M Mud Type: waterbased Final MD Density TOC PV YP Setting Compr Volume (bbl) Time Strength (psi) Class G Slurry 13.5 1500' -- 2.1 0.2 2200 128 Displacement 10.2 0' 9.0 14.0 105 *Weighted spacer: 40.0 bbls SealBond w/3%KCL+ 19 lbs/bbl Potassium Chloride+ 123.7 lbs/bbl Barite -Sacked @ 11 ppg Volume Calculations 500 ft x 0.10'x`( wi 0 excess = 52.2 cf 44 cf/ft th 5000 ft x 0.09V- wi 40 excess = 659.2 cf 42 cf/ft th % 80 ft x 0.08,7q wi 0 excess = 6.8 cf(inside pipe) 54 cf/ft th % = 718.2 cf TOTAL SLURRY VOLUME = 128 bbls Fluid Specifications Volume Fluid (cf) Vol Fac Amount and type of Cement Slurry 718 1.84 = 391 sacks Class G Cement+ 10% bwoc BA-90 + 0.005 Ib / ass ck Static Free + 2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 0.5% bwoc Sodium Metasilicate + 82.3% Fresh Water Displacement 105.3 bbls Drilling Mud @ 10.2 ppg 381 . • • Bit Proposal Bit Summary Interval MD Size (in) Type IADC (ft) Surface: 0-2000' 8.5 Toughcutter 117M Production: 2000'-7000' 61/8 PDC M433 39IPage • Regulatory Waiver and Special Procedures AOGCC Regulation 20 AAC 25.035 Secondary well control for primary drilling and V 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 ti size(8 1/2") in the surface section of this well. Arr �7, // � o-I 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; pip Apf' The Otter#1 exploration well is located on a logging type road which is not considered as public �r� 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 accessway. AOGCC Regulation 20 AAC 25.035 (8) connections attached directly to the wellhead,tree, or BOPE must be flanged or hubbed; Cook Inlet Energy requests a waiver due to the low expected pressures and the short exposure time. 40IPage 14 Lt VED • k� AR8o2a12 Cook Inlet Energy_ 011�6as Cont,nChOrgoo 1°41111148SiOn March 30, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Cook Inlet Energy, LLC: Otter#1 Dear Ms. Foerster, Cook Inlet Energy(CIE) hereby submits a Permit to Drill application for its gas exploration well, Otter#1 located on CIE lease#390579, approximately 10.5 miles north of Beluga. The well is planned as a straight hole with a total depth of 7000'. 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 waiver request to use a 12" diverter line instead of the 16"diverter requirement according to 20 AAC 25.035 1. This is due to the slim 9 7/8" surface hole. In Addition, CIE requests confirmation that a Sub-Surface Safety Valve is not required for this 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 May 1, 2012 If you have any questions,please contact me at(907)-433-3804. Sincerely, f David Hall CEO—Cook Inlet Energy 601 W.5th Avenue,Suite 310,Anchorage,AK 99501 (907)334-6745*(907)334-6735 fax r STATE OF ALASKA AWKA OIL AND GAS CONSERVATION CONII1SION PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: 'lb. Proposed Well Class: Development-Oil ❑ Service- Winj LJ Single Zone ❑ lc.Specify if well is proposed for: Drill 2 Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone 0 Coalbed Gas ❑ Gas Hydrates H Re-entry ❑ Exploratory E Service- WAG ❑ Service-Disp ❑ V" "- Shale Gas ❑ 2.Operator Name: 5. Bond: zBlanket Single WeJI 11.Well Name and Number: COOK INLET ENERGY,LLC Bond No. /' .(3 i2 61212870 c''/•3 is OTTER WELL#1 3.Address: 6. Proposed Depth: 12. Field/Pool(s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7000' TVD: 7000' 4a. Location of Well(Governmental Section): 7. Property Designation(Lease Number): EXPLORATORY Surface: 2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 390579 Top of Productive Horizon: 8.Land Use Permit, t 13.Approximate Spud Date: � � N/A 5/1/2012 Total Depth:2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 9.Acres in f'}dpe ` 14. Distance to Nearest Property: \ . 5760 1805' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10\KB Lfevation above MSL: 174.8 feet 15. Distance to Nearest Well Open Surface: x-26755 y- 44&267'835 Zor 4 GL Elevation above MSL: 160 feet to Same Pool: N/A _--P-713 C jcp;e.3;< zt,7S 7-- Ksr 16. Deviated wells: N/A Kickoff depth: feet 17. Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 3567 psi Surface: 2867 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 BTC 200' 0 0 200' 200' driven 9 7/8" 7 5/8" 29.7# L-80 BCT-M 2000' 0 0 2000' 2000' 392 SXS, 12.0 ppg 6 3/4" 5 1/2" 17# L-80 IBT-M X000' 0 0 7000' 7000' 330 SXS, 13.5 ppg 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect. Depth MD(ft): Effect. Depth TVD(ft): Junk measured): Casing • . • Size Cement Volume MD" TVD Conductor/Structural Surface > �� u 0 ?//12 Intermediate �!l,__A . Production `illir .• P �ivY�(t'r nN Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Property Plat Q BOP Sketch 0 Drilling Program El Time v.Depth Plot ❑✓ Shallow Hazard Analysis0 Diverter Sketch E Seabed Report ❑ Drilling Fluid Program 11 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 30-Mar-12 22. I hereby certify that the foregoing is true and correct. Contact Courtney Rust 433-3809 Printed Name David Hall Title CEO Signature - 7 I` Phone 907-433-3804 Date 3/30/2012 C Commission Use Only Permit Drip / API Number: , Permit Approval See cover letter for other Number: �;; �(�� 50-? -20/657'-e-6 r Date: requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbedme hane,gas hydrates,or gas contained in shales: d Other: Samples req'd: Yes[vNo❑ Mud log req'd: Yes Er No❑ HZS measures: Yes["No❑ . Directional svy req'd: Yes ❑ No X-0-kJLvtLZ4-2e4, 6L r t.e y j--�c,ttiihe�' ?-e-t-- Zf� 2S:GSZ) G� ' 'SCL APPROVED BY THE COMMISSION DATE: ,COMMISSIONER ORIGINAL '7 , , tp.,,t, Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate • Table of Contents Location Schematic 4 Drilling Procedure 5 Formation Integrity Test Procedure 6 Proposed Wellbore Diagram 7 Time vs Depth Plot 8 BOP Sketch 9 BOP Equipment 10 Diverter Sketch 11 As built rig and diverter line set up 12 Wellhead Schematic 13 Geo-Mechanical Plot 14 Shallow Hazards Analysis 15 Seismic Information: Confidential 21 Background Information 24 Casing Design and MASCP Calculations 30 Maximum Anticipated Surface Pressure 31 Logging Plan 33 Mud Logging Plan 33 Drilling Fluid Program 34 Solids Control and Equipment 34 Drilling Waste Storage 35 Cementing Program 36 Bit Proposal 38 Regulatory Waiver and Special Procedures 39 3IPagc • • Location Schematic ____ _____ _____ ~4=1..- Pn,tracted Section Line 1 ... t _ ____ _ 0 i 4,........ ,..._ SEC 12T14NMOW SMAK g SCALE E I '� INOT S et Ili la 1.SPAN OF FRq1ZONTA.PPD i VERTICAL CCIRFPX WAS OFIERIONLI [NAN FIGS OPUS SOLVflCN Hicri COW!ills!STATIONS ISM PD J =OW, T APIDAIWAN]'ANC2 IA PIO OLNiN'OBSERVED MUM ON ria caNFIIaL Parry 90 :ASP NADaa a. ZOPE 4 1313071 21411 DATUM BRIG le 9173547.114 C 14Rlr7NN ELZW1T1ON;11e.31 GES]94 MAMMA DATUM 2)SECTION im OFFSETS OETSFILNIKI ` — — FROM TNNE PROTRACTED IECION CORNEA VALUES. itb a)OORPSOOil vaiaON ito.1 INAM Q, LIIDD POR DATUM CONVBIrION. SL-0TTER 61 A 4140 Ir "..4\ ° //ir \\ :::41143 \:14; 'Ilk. \ N \ et4).‘ Ai, I ,r• t `" 4 t\' ATTER`14. '., IN, N:2675742.W '+ E:327463.3W ' ,. * LAT: 8119'12.175-N `'r, LONG:150'30'54.912"W :,. N 2B NO. 1'1 ELEV. 600' NAVO88 E:327439.010 .75 - LOMQ$11911150,5' 5.404'W \ ASP ZONE 4 NAD27 REV. 160.0' NALDS8 1 OTTER WELL PAD CONSTRUCTION 140111°. PROTRACTED SEC.12 ..pp` T14N,RISK BPA,AK "M NM EMMR Yd ,, LICLANECONSULTSIGINC. RPM= PROPOSED OTTER WELLS NO.1A2 NOM *-111 .moo-,=11. ASSTAI033 SURFACE LOCATION DIAGRAM 191161110116 ,mw 1'7r71f1� �e7wo-M. MEM !e 1 �' �1ftda "Malmo Cook INLET ENERGY .=, Nam P.O.BOK NM 4 .1 1 `i m IM 1 ANCHORAGE,M S 4IPage • • Drilling Procedure Pre-Rig Work A. Drive/ Drill 10 3/4" conductor to minimum of 125' or refusal. Weld on Vetco Multibowl 11" 5M Wellhead. Install two bull plug outlets in cellar. B. Drill mouse hole. C. Set up Reserve Pit D. Lay out matting boards. Rig Work 1. Move in Rig. 2. Install and function test 11" diverter system. Note: test and rig up must be witnessed by AOGCC. 3. Prepare for spud - Fill pits, mix mud, stage materials 4. Pick up 9 7/8" bit, motor, and BHA. Run in hole.Clean out conductor. Spud well. 5. 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 check every 10 joints or sooner if in tight hole. h. Drill site supervisor to be on rig floor for all trips in surface hole. 6. Circulate bottoms up and make wiper trip to shoe. Run back to bottom on ANY signs of swabbing. 7. The Mud loggers drop carbide that creates acetylene gas and shows up as a gas show to determine hole volume.Circulate bottoms up. Pull out of hole. Run back to bottom on ANY signs of swabbing. Note: Open hole logging is not anticipated in this hole section. 8. Rig up and run 7 5/8" casing. 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 run. 9. Land casing hanger in starting head. Cement 7 5/8" casing with 100%excess cement (more if carbide indicates). Drain Diverter of any cement. Back out landing joint. 10. WOC for 12 hours. Check for flow. 11. Nipple down diverter. Perform top job if cement is not to surface. 51 • 12. Nipple up and test 11" BOPs (250 psi low/3000 psi high) Test Annular to 1500 psi. 4" pipe rams on top, blind on bottom Notify AOGCC minimum of 48 hours in advance. 13. Pick up 6 3/4" BHA and RIH to shoe. Test 7 5/8" casing to 3000 psi. Drill out floats, shoe track and 20' of new formation. 14. Clean pits, mix new EZ mud. Circulate and condition mud while changing over to KCL/EZ mud system. Perform FIT. The mud density will be maintained between 9.5 and 10.6 ppg as required to control connection gas.The minimum leak off test is 12.5 ppg and anticipated is 15.7 ppg 15. Drill 6 3/4" hole to 7000'taking surveys every 500'. Make wiper trips as required. Circulate bottoms up. 16. Circulate and condition hole for logging. Pull out of hole. 17. Rig up and Run Baker Atlas Triple combo log as directed. Rig down Atlas. 18. Run back in with 6 3/4" Bit and BHA to bottom. Circulate and condition hole. Pull out of hole. (if dry hole a separate abandonment program will be written.) 19. Change and test upper rams to 5 IA". 20. Rig up and run 5 1/2" casing. Install cementing head. Circulate minimum two bottoms up. Reciprocate casing during circulation. Have safety joints with crossovers made up for 5 '/2"casing run. 21. Cement 5 1/2" casing. Reciprocate pipe during cementing if possible. 22. Land 5 1/2" casing hanger. Test hanger to 3000 psi. 23. Rig up eLine. Make gauge ring run to TD. 24. Run CBL from TD to TOC. Evaluate log. 25. Perforation and completion plan to follow. 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. 6I - • • Proposed Wellbore Diagram Cook Inlet Energy Otter #1 Proposed Wellbore Diagram ..< .� : •. �< ;| 10342 ",455# L-80,BTC A @200'MDI TVD (ID=9.9S)Driven \ � k • • • \ k Chemical injection mandrel • why control lines \ 2 k \ / &78",E5# L-80,EUE & k Tubing(Coupling OD=3.668") A, \ A. 9 7/8"Hole • w � k • #1mrt C\%q \e 7582 %z.7# bemBC sU • • \#%mE9D��D * uD=E9p ¥ ( • ' « $ % f BHole s• 7 ' 5-1/2",17% L-80, (Dme=¢Az) $ ° @ 700oMD/TVD 7IPage • Time vs Depth Plot Otter Well Proposed Time vs Depth o' 10 3/4"Casing at 200' (45.5#, L-80, BTC),driven 1000' Drill 9 7/8" hole 2000' 7 5/8"Casing at 200e (27.7#, L-80, BTC) 3000' M O. .0 4000' CO 5000' Drill 6 3/4" Hole 6000' 7000' 5 1/2" Casing at 7000' (17#, L-80, IBT) 8000' 0 5 10 15 20 25 30 Days 8IPage • BOP Sketch nnnr-1nnr-1 11" 3000# WP BOP 32 7/8" 11 •V A PIPE RAM 1.74 29 3/8" 1 1 BLIND RAM 1.74 24" .17_,.../Lseji mitiv rl��l r--1-- fit 11.00 + 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 9IPage • • 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. 101 • • Diverter Sketch Surface - Diverter Line Rig Floor Flow Nipple or 4s - Arrri 32' Annular Preventer SIZE 11'Shaffer 3M J• ?-®' 1 :„.....# DSA Rental 36d _ ...T___. -11:1 :3-'4'31.4 tr.. 13-5/11 5M C 43 12'hydraulic Knife V..alve 12"15Off ANSI 12`Bluie Line 12 106h of 12"13 37E'Wall Pipe C 3 n, n v 11.13 13-5/11 5M I OSA Rental li :3-58'334 I* yrr err 3-14r r ORBOR. lin 5AA Wellhead elI-' ,aa-A Ground Level=? 11.1 111 --- ir X..: aunt 0' Oh��1__X 11 Page • •, As built rig and diverter line set up N. * NORTHJ / //\\ N-... �AWAS„,,/E--II..? II . \/ ,Z)/”‘ II , ,\'..t /,II \ r<V II - /\ ,,),:<\ s \ � . ,,,q,:,‘, A. .:,t...).3 � 'Ca`•" Wyk> ! `. \ ,\`� . \. \''' • ,: 4.......„:„.....\,..„,,,,,:::....4,.... \,...../\,•?..;%:\ \ s y y... ,.......' "..../s.\..,\N:\ ,....*.!:<:,...!:„..), \:),)/'‘'//,',.,5,;4".1,\\ / . fin y,f1 ! ..�.. , \ ‘<(>.*• \\ � \ '/..1>4.145:-/,',.fi ,�a //.../// 49/ N \ \ m a OTTER WELL PAO CONSTRUCTION L''' PROTRACTED SLC.12 T14N,R14UU,SPA,AK ' 11'Z71"= /r MCLANE CONSULTINt3 INC, a. OTTER WELLS NO.1 R.2 .7.::::, :irvm�._,�m: RIG ORIFNTATION RIG 34 McE •n� vc M.I r...,ea •' ' •COCK INLET ENERGY 117 .c c;wri:n4a3 c l'AX:I:r;a3aa1 P.O.BOX•1115;31 r. 1 C-&naul-'rj Inc ..0•4C.1.49',A.7r i APJFAUF ACE,M 38909 E 12IPage V • • Wellhead Schematic 1' Q(� GE Oil &Gas ti Illi' rr^RTI •.. I,�� F3S1 Ar-. 1. vr IA 1.11.1.10 (Meir 111- �k r . T-Y4.:.1C1 N 1-s:rpn4.1,G: iGu1•'.ss.r: -:1.i_I•,.,,: .•. ,r,,:, „... ..IN; COOK INLET ENERGY LLC .res':Y.•1,0.:Pi r...”2.5 re a 411;UmI•Vrai L'lurwl?. OTTER#1 14. 14”x 7.6/8"x 5-1/2"x 2-7/8-5M LSH/Conventional ` I BTF l 10FEB12 �,F'RV ror I Wellhead Assembly. With T-C13S Tubing Head, T-N141.1-CCL y :111< , IIT, Tubing Hanger and Adapter Flange clke..1vc.na. AE213Y9-A 13 ' Page 0 • Geo-Mechanical Plot Otter Proposed Geo Mechanical Plot Equivalent Mud Weight(PPG) 8 10 12 14 16 18 20 0 —1F---- Sterling 950'+/-9 ' - 10 3/4' 1000 2000 Beluga 2735'+/-2561' . 7 5/8" 3000 Calc Pore Pressure 4000 LL +S+ 4 O. W Mud 0 5000 Weight (Pore Press. +Drilling 6000 margin) Tyonek 65C0' • Frac 7000 Gradient 5 1/2" 8000 9000 14IPage 110 S Shallow Hazards Analysis Shallow Gas potential Otter Prospect Area A thorough review of all wells drilled within five miles 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 with shallow gas have been identified from these 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. One shallow anomaly is - apparent on line No. 10 corresponding to a depth of approximately 1200'. This anomaly is approximately .6 miles west of the proposed well and is not apparent in close proximity to the drillsite. Texas International Petroleum's Pretty Creek St#1 (2- T 14N R lOW was drilled approximately .9 mile immediately Northwest of the planned well to a depth of 6570'. The well was drilled to a depth of 2264' utilizing muds with a weight of 9.4—9.8 ppg with no shallow gas i accumulations 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, >appropriate care will be exercised while drilling this interval to insure adequate well control should a shallow gas zone be encountered unexpectedly. The package of high amplitude coherent reflectors range from approximately .7142 - .9 seconds at the wellbore. These most probably tie to near and within the Tyonek formation and are generally probably tied to the coal stringers seen in lwr Beluga and Tyonek formation. The events are not seen as strong on the dip line and are probably masked to some extent by the South thrusting fault shadow. The depth range for .7142 to .9 seconds is 3398' —4327' MD (3223' to 4152' SSTVD). CIE's geophysicist observed no other indicators in the seismic data that could signify shallow gas or geopressure, such as bright spots, coherency loss (dim spots), gas chimneys or time sags. But we would expect to see the same type of events on seismic that are indicating the normal Tyonek stratigraphy including sands, shales and coals. The stronger events are interpreted to generally tie to the coals. Coals across the basin generally exhibit stronger amplitude and better cohesiveness than normal sands, shales and sitstones due to the greater velocity contrast. The only anomaly's observed that we feel might be associated with shallow gas is the one on line 10 near shotpoint 11130 at around .28 - .3 sec. that has been previously identified. This event does not appear to underlie the area being penetrated by our wellbore and is not considered a threat to cause drilling problems in our planned well. 15IPage • • The drilling histories of the twelve previously-drilled wells closest to the Otter prospect were examined for difficulties encountered above 2,500'. The wells examined are: Well Distance from Otter Coffee Creek#1 Lewis River B-1 Pretty Creek Unit 224-28 North Tyonek State#1 East Lewis River 1 Lewis River 1-A Lewis River 13-2 Lewis River C-1 Lewis River D-1 Pretty Creek 1 Pretty Creek Unit 4 Theodore River PCU 2 These wells were drilled to various depths,all greater than 2,500',but none encountered significant difficulties in the surface interval. One well,the Lewis River#31-2,encountered some tight spots just above 2,500'but had no problem reaming them out. None of the wells experienced losses,kicks or - indications of shallow gas in the surface interval. The offsetting wells were drilled using initial mud weights of 8.4—8.7 ppg and achieving 9.3—9.6 ppg by 2,500'. Conclusion Examination of the drilling histories of the offsetting wells and correlation of their geological sections with Otter using well logs indicate there are no shallow hazards to be expected while drilling Otter Prospect as long as mud weight similar to or exceeding those used in the offsetting wells are utilized. Well Information Casing Tops Plugs Texas International Petroleum 30"@ 41.5' Beluga 100' 55 Sx from TOF @ 6475—6283 Pretty Creek St#1 20"@ 145.8' Tyonek 3882' 60 Sx 6014-5900 API 50-283-20043-00 Permit#74-041 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 16IPa e ` • • • Forcenergy 20"@ 90'RKB Tyonek 700' 7,325'-7,900' Cement Plug 13-3/8"@ 1,219' Three Mile 6,756'-7,133' Cement Plug, Coffee Creek#1 RKB Sand 4,780' EZSV @ 6,800' API:50-283-20094-00 Permit No.97- 9-5/8"@6,715' Chickaloon 5,537'-5,785' Cement Plug, 219 RKB 6,630' EZSV @ 5,785' Mesozoic 4,009'-4,415'Cement Plug, Sec 19,T14N,RIOW,SM 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#1 20"@ 371'RKB Tyonek 6,550' 9,850'-9,950' Cement Plug API: 50-283-20052-00,Permit No.76- 13-3/8"@ 2,399' Middle Groung 31 RKB Shoals 8,312' 8,550'-8,650' Cement Plug 9-5/8"@ 8,557' 6,658'-6,710'Cement Plug, Sec. 10,T14N,R9W,SM RKB 6,710'-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 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.86- 076 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. 17IPagc • • Well Information Casing Tops Plugs Cook Inlet Sand Phillips Petroleum 13-3/8"@ 322'MD 1,684' 4,831'-4,964' Cement Plug North Tyonek State#1 9-5/8"@ 1,321'MD Beluga 2,527' 3,931'-4,064' Cement Plug API:50-283-20040-00,Permit No.73- 16 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 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.75-6 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 10,678', 10,500',8,012' Elevation: 15' GR 9,646'to 11,625' 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 18IPage • Cities Service 30"@ 48' Beluga 2,279' Lewis River 1-A 20"@ 363' Tyonek 5,864' Bell Island API:50-283-20047-00,Permit No.75-5 13-3/8"@ 1,368' 9,142' Chickaloon Sec.2,T14N,R9W,SM 9-5/8"@ 8,147' 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.68-1 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 Well Information Casing Tops Plugs Upper Beluga Union Oil 20"@ 75' 2,700' Middle Beluga Lewis River C-1 13-3/8"@ 368' 3,500' API: 50-283-20061-00,Permit No. 178- Lower Beluga 075 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' 19IPage 4 , • Cities Service 20"@ 359' Beluga 2,096' 7,135'-7,235' Cement Plug Lewis River D-1 13-3/8"@ 2,395' Tyonek 6,210' 6,180'-6,280' Cement Plug API:50-283-20068-00,Permit No.80- 141 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 *Weil Plugged and Abandoned 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.201- 193 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 1 13-3/8"@ 2,032' 3,215'-3,450' Cement Plug API:50-283-20022-00,Permit No.69- 15 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. 201 Page • • • Seismic Information: Confidential Pi we OD 36 ?.1 32 of '" 1 b .> s Siam ''w 11 % :: 011. j 14 1 a1 ISO TIAN RIOW to ;4. ,s 24 I"` 19 20 r . •n Mat COM ritewo, corEEnuIL PROM w'irrOd D m ri®oR arrow sera.a ar.eaoliar"► 21 ' Page • • Q. V C C " V = - !1 .13 ii 1 a,. r, / ' �. •.1 • ', t !, i°', 4' v r l . I + ' ' F t 11110 so , i t /t: ��` 1` /1' ' . I r '.►ri 1 / 1 r f , ''Il, is . 1 • • !• ,j� 1 II I� i r � i - J d XI t t • I.,. t I (r pA / I,i• I t,xii � aIII P � + ' �; r r, CI , r. r' '' r --9 , YI i`r• " r ' y .r 0 iv , yah.! p 3:2° i * Po '" 1, dA ;1!;'1 a i :.. in , G.) « F If Ii 41 1 r. + a 4.d I tl 0i41;',4 I t Dc A . d y _ I .1 I�' I:, a, Nd o I' _iy 1 S T[L - +S 1 It 1 Al �..i 1.1 e t'i • • k .qq ;i t 'I ,i'I.iIj , I :,.. ,.: , „., ,:, ,,, ,.1,A, . ..........—.--..3, :, ''',.....„ v5 22 1 I ,„.„,.. w z $ ' u ,, o E c �{ ,aR Y ti t ,v „ , I i N ,1y AI fi ie y Y �: 1 0,44 II 'I: ;I 1 I / t Ila . fA t I r ' 4.lIt‘ 11, r a r n tp,. 0 Y x , 11 1 ?, m )., f t $ f Y � Y f W 1 •r err 1' N { 11 n A}0 f00! 1'a 1 r. i � N 4 4 , , o M t /� �i, �,% 1" Qgg'pp,„,,,,,, , , \ il ..- i �9'�+ ftA. " ,� `a � A W k_. '. • Y ' i ' .„,.:,:ti dive If1 f '. a .1' , . k CC Oltti lilt'..A.� i 0317 � ai • A t s f .oa t « " 4 "a tiO i , f t4 ..,\ 1 ti , , , i — a p1 t 4 0 r. r. j , f 1 1 231 ;3agn 0 i Background Information Pretty Creek#1 Sec 2 T14N R10W Cook Inlet o � I I 1r 0 1000 1 ill . 2000 / i • 3000 - i-I- -- d 1 . f CD . , .... r. .t r ... I _El - , , Q▪ . � I CD 4000 -- 1 r , , 5000 1 I l'..- i 1 - --. ._ --- -- t i 8000 i- — — i ., { . . . . .. . ,_..moi � __...... . .. 7000:- —._ i 10.00 100.00 1000.00 Sonic Log Travel Time (ps/ft) 24IPage • Cook Inlet Energy. Otter Regional Temperature Gradient Temperature, deg F 0 20 4.0 60 EO 100 120 140 160 180 U 1 ' : NRIi 11 , H I 1 I ; ,...,._' 111MIlY; -tikre G ache 12E. 2 diet F/100 I� !NIN.� III I Iuiu1•Iiu 1 1 III zo�� II aril, nI •.••IIIA Poi 91ti " ' UIUIIIIIn II It , ' ' iuiiii1mUiiiii l 111P . ' 4000 1 f ,P�e t Cr` 1� iINIIIINNII, i I IN_ . is River : 1 111111.1 1n�1n1I __ IN 6000 i I ■MINI . ini ' IIIINIInIUNNI I1111111111111111111111111,- I� !S,R� .t 11l III li , , a gime T �11111IL r I II - . , . Eas Lewi - `1I . 1111. BEII-= is RIVer DI1 II I1IIIn1 Nig Lie is Riv-r Inlnn�i 6I•I _-1 ' ' _ „000 til ' IIn II1NU !1n i ___, n1 erc 120 1..1 ,ii , omni I I .,.. m 11111111 III ' ' Inln - ENENBuipIllemoir . 1i1 IIIInim II o MI■ III ` � : ; - _ 14000 I _. . 25 IPage Composite Pore Pressure Plot Mud Weight(PPG) 8_0 8.5 9.0 9,5 10.0 10.5 11.0 1,000 2,000 3,000 — Otter-Pore Pressure , E. 4r000 5,000 -- ?AOC} 8,000 110 • Cook Inlet Erie rgx Composite LOT Plot IgUh 11. t Mud Weilh1(PPG] R.b 100 1?.0 14 0 16.D 1&D 20.0 1XX" 4 2,030 -- — 3,aoa P•elty Crock Un 22428 ;LOT) 4480 Pre Creek Unil 4[LCT) Q Coffee.Creek 1;lat) d LOT Form Confirms Farm atlon Greek to 16-0i Otter=rat Gradient PPG-EMW at 6,735' Daily Report Does Not Confirm forma Lion Break to 16.0 PPG-EMW et 6,375' 0.000 I 7.,000 9.000 27IPage • • • Composite MW Plot Mud Weight(PPG) 8.0 8.5 9.0 9.5 10.0 1D.5 11.0 1000 2000 3000 1-- - ~Otter-Mud Weight Plot 4Q00 • _. .. C o � 11 5000 6000 7000 SOW �--- — • 110 _CQQk Inlet Energy Composite Frac Gradient Plot Equhralent Mud Weight ppm 8.0 10.:7 11.0 14.0 1 F.0 l$0 1,006 ).duct _...._ 1000 • —Otter Frac Gradient 4,070 t 5,008 6,00 -- a.oco r • 291Page T + ' ' , • • Casing Design and MASCP Calculations MD(ft) I Connection API Ratings Casing Weight r Hole Size Size (lb/ft) Grade Makeup (inches) (in) O.D. Burst Collapse Tension Top Bottom Type (inches) Torque (psi) (psi) (kips) (ft lbs) 10 3/4" 0 200' 45.5# L80 BTC 11.46 N/A* driven 5210 2470 1040 7 5/8" 0 2,000' 29.7# L80 IBT-M 8.5" N/A* 9 7/8" 6890 4790 683 5 1/2" 0 7,500' 17# L80 IBT-M 6.050 N/A* 6 3/4" 7740 6390 397 Comments: *The make-up of the buttress connection will be to the proper mark. Make up and Bakerlok all float equipment to joints prior to running in the hole Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (lb/ft) (TVD ft) Set Pressure (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (lb/gal) 7 5/8" 29.7# L80 2000' 9.8 15.7 8.8 1484 4.7 4.88 11.5 5 1/2" 17# L80 7000' 10.2 16 9.8 2867 1.7 2.7 3.3 Comments: 30IPage , Maximum Anticipated Surface Pressure Casing Size Setting Depth MAWP* MASP** (in) (TVD) (psi) (psi) 7 5/8" 2000 3000 3567 5 1/2" 7000 3000 2687 *MAWP =Maximum Allowable Working pressure**MASP =Maximum Anticipated Surface Pressure Well Control and Casing Design Calculations Surface Casing: 7 5/8' (2,000' MD / 2,000' TVD) Collapse 9.8 ppg mud wt at setting depth-evacuated = 9.8 ppg x .052 x 2,000' = 1,019 psi Safety Factor =4,790 psi/ 1,019 psi = 4.7 Burst an. Surface a) Frac Pressure @ Csg Shoe = (15.7 ppg + 0.5 ppg)X .052 X 2,000' - (.1 psi/ft x 2,000') = 1,612 psi -200 psi = 1,484 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (9.8x.052x7000') - (0.1 psi/ft X 7000) = 3567 psi - 700 psi (= 2867 psi Use lesser of a or b = 1,484 psi Safety Factor = 6890/ 1,412 4.88 Tension no buoyancy, hung in air = 2,000'x 29.7 =59,400# Safety Factor = 683,000/59,400 = 11.5 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst)- (Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 6890 psi)- ((9.8 - 8.33)x .052 x 2,000')) MASCP = 5,359 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 31I • , • • : 5 /" (7,000'MD/7,000 TVD) Collapse 10.2 ppg outside, = 10.2 ppg x .052 x 7,000' = 3713 psi Safety Factor = 6390 psi /3713 psi = 1.7 Burst a Surface a) Frac Pressure @ Csg Shoe = (16.0 ppg + 0.5 ppg)X .052 X 7.000' - (.1 psi/ft x 7,000') = 6006 psi - 700 psi = 5,306 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (9.8 ppg X .052 X 7,000') - (0.1 psi/ft X 7,000') _ (3567 psi) - (700 psi) = 2867 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Use lesser of a or b =2867 psi Safety Factor = 7740/2867 = 2.7 Tension Hung in air = 7,000'x 17# =119,000# Safety Factor = 397,000/119,000 = 3.3 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.) x .052 x TVD MASCP = (.8 x 7,740 psi)- (10.2—8.3)x .052 x 7,000') MASCP = 5500 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 32 • • Logging Plan Open-hole Triple Combo Logging services(Gamma Ray,Neutron, Density and Resistivity). Estimated open-hole logging interval from TD of 7000' 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. 33 f, • • Drilling Fluid Program Otter #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' 80-150 30 25 10-18 unrestricted j r I`llt;i j�c.c.e.,..Jt Production Hole 2000'-7000' / I �`� Mud Type: 2%KCI/EZ MUD Mud Properties MD Density Viscosity PV YP 10 second Gel (Ib/100sf) pH API Filtrate (cc) 9.5- 13- 8.5- 2000'-7000' �,9-Dr. 40-53 6-30 20 8.5-9.5 9.5 <5.0 ` 'a3,(2- Solids 'i2.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 341 Page 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 lined secondary containment area with approximately 3,000 bbls of total waste storage capacity. A minimum of 24" of freeboard will be maintained at all times. The area will be covered with a secured tarp or other similar impermeable material to prevent the accumulation of precipitation. 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. 351 °> ) • • Cementing Program Otter #1 Cementing Program Surface Hole 200'-2000' Casing Type: 7 5/8", 29.7#, L-80 BCT-M Mud Type:waterbased Final MD Density TOC PV YP Setting Compr Volume (bbl) time Strength (psi) Type 1 Gas Tight 12.0 0' 9 14.0 0.2 2500 61 Weighted Spacer 10.0 0' -- 4.8 40 *Weighted spacer:24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg Volume Calculations 200 ft x 0.22 wi 0 excess = 44.6 cf 29 cf/ft th 1,800 ft x 0..21 wi 100 excess = 774.3 cf 48 cf/ft th 80 ft x 0.25 wi 0 excess = 20.6 cf(inside pipe) 78 cf/ft th = 839.5 cf TOTAL SLURRY VOLUME = 150 bbls Fluid Specifications Fluid V(cf)a Vol Fac Amount and type of Cement Slurry 839 2.12 = 392 sacks Type I Cement+0.05 lbs/sack Static Free+.2% bwoc R-3+2%bwow Potassium Chloride+25%bwoc LW-6 +0.6%bwoc CD-32+ 1 gals/100 sack FP-6L+0.25%bwoc Sodium Metasilicate+0.9%bwoc BA-10A+5%bwoc MPA-1 +69.3%Fresh Water Displacement 88.2 bbls Drilling Mud @ 9.3 ppg 36 � r • Production Hole 2000'-7000' Casing Type: 5 1/2", 17#, L-80, IBT-M Mud Type: waterbased Setting Final Compr Volume MD Density TOC PV YP Time Strength (psi) (bbl) (hr) @ 48 hrs Class G Slurry 13.5 1500' 87 19 3:47 2478 108 Displacement 10.2 0' 9.0 14.0 -- -- 154 *Weighted spacer:40.0 bbls SealBond w/3%KCL+ 19 lbs/bbl Potassium Chloride+ 123.7 lbs/bbl Barite -Sacked @ 11 ppg Volume Calculations 500 ft x 0.09 w/ 0 excess = 46.4 cf 28 cf/ft 4,700 ft x 0.08 w/ 40 excess = 549.5 cf 35 cf/ft 80 ft x 0.13 w/ 0 excess = 10.4 cf(inside pipe) 05 cf/ft = 606.4 cf TOTAL SLURRY VOLUME = 108 bbls Fluid Specifications Fluid V(cf)e Vol Fac Amount and type of Cement Slurry 606 1.84 = 330 sacks Class G Cement + 10% bwoc BA-90 + 0.005 lbs/sack Static Free +2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 0.5% bwoc Sodium Metasilicate + 82.3% Fresh Water Displacement 153.9 bbls Drilling Mud @ 10.2 ppg 37 1 K4 , • • Bit Proposal Bit Summary Interval MD (ft) Size (in) Type IADC Surface: 0-2000' 9 7/8 Toughcutter 117M Production: 2000'-7000' 6 3/4 PDC M433 381Page 7 r • 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 Otter#1 exploration well is located on a logging type road 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 accessway. 391 STATE OF ALASKA RECEIVED 1 _ler ADA OIL AND GAS CONSERVATION COMNOION FEB 2 1 2012 PERMIT TO DRILL 20 AAC 25.005 -Mask QI &Gt° r,- ',, o0sx11r la.Type of Work: lb.Proposed Well Class: Development-Oil H Service- Winj H Single Zone H 1c. cify if well is proposedrfor: Drill ❑✓ • Redrill ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply H Multiple Zone Coalbed Gas ❑ Gas; `orates ❑❑ Re-entry ❑ Exploratory Q• Service- WAG ❑ Service-Disp H �. . -z;. s iz ,,. I S. e Gas 2.Operator Name: 5. Bond: Blanket ❑. Single Well 44, 11.Well Name a • umber: COOK INLET ENERGY,LLC Bond No. 61212870 g I' 12 O : 'WELL#1 3.Address: 6.Proposed Depth: 12. Field/P. s): 601 W 5TH AVE ANCHORAGE,ALASKA 99501 MD: 7000' TVD: 7000' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): EXPLORATORY Surface: 2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 390579 ' -j'' ./3 /.:• Top of Productive Horizon: 8. Land Use Permit: • 3.Approximate Spud Date: 3/10/2012 Total Depth:2081'FNL 1805'FEL SEC 12 T14N R1OW SM AK 9.Acres in Property: 14. Distance to Nearest Property: • 5760 1805' 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MSL: 4.8 feet 15. Distance to Nearest Well Open Surface: x-2675547r y- 1467267.836 Zor 4 GL Elevation above MSL: 160 feet to Same Pool: N/A 37-74/3 .2c 75 73b t ._ 16. Deviated wells: N/A Kickoff depth: feet 17.Maximum Anticipated Press "s in psig(see 20 AAC 25.035) 763/ Maximum Hole Angle: degrees Downhole: 3.567 _86'1•psi Surface: 2.847 1444 Psi 02 18.Casing Program: Specifications Top - Setting De, - 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 BTC 200' 0 200' 200' driven 9 7/8" 7 5/8" 29.7# L-80 BCT-M 2000' 0 0 2000' 2000' 160 SXS, 12.0 ppg 6 3/4" 5 1/2" 17# L-80 IBT-M 7000' 0 0 7000' 7000' 330 SXS, 13.5 ppg 19. PRESENT WELL CONDITION SUMMARY(To.- co. • " Redo -Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured). I I): 410,•( th D(ft): Effect. Depth TVD(ft): Junk measured): Casing • • • Size ' r C ent Volume MD ND Conductor/Structural Surface I'? a - Intermediate 01 Production tr. Perforation Depth MD(ft): y, Perforation Depth TVD(ft): 20. Attachments: Property Plat ❑ BO' etch❑✓ Drilling Program Q Time v.Depth Plot ❑ Shallow Hazard Analysis❑✓ Dive Sketch❑✓ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 2-1 i I 2- 22. 22. I hereby certify that the foregoing is true and rect. Contact % 1.�) tjr�t, 437-3���Y�j Printed Name 'avid Hall Title CEO I Signature r 0_,A.----,--1 l-/ / Phone 907-433-3804 Date 2/21/2012 Commission Use Only P it to Drill i.....7 /., API Number: Permit Approval See cover letter for other Number: { Ci Z/ 50- 132�`1 ie ''(t)'tX Date: requirements. Conditions of approval: f box is checked,well may not be used to explore for,test,or produce coalbed methane, as hydrates,or gas contained in shales: Q Other: Y 30 4). (..' / ?j Samples req'd: Yes❑' No[ „1,;'v Mud log req'd: Yes H No❑ `T' / H2S measures:/Yes❑ No❑/2 Directional svy req'd: Yes ❑ No©*- --Werri- t/i•✓,_ ✓' Z=;,.� CnG/iYl2n 21 Stkrve F�1 LQ-,t �Zr 2 A 2 i55?� of P . 4 ..L z o .44c_ zs:fS s75- )(065) -J 0 r .1.:-_,, , 5-, „,,,t_ s-,',,,,,t7 z4.,_ er...v, ol .,_.,„_/Pe.,-11 t,),,e, ' /.,.-:-se-, ... APPROVED BY THE COMMISSION DATE: ,COMMISSIONER flntr` I \ I A I Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(9)) Submit in Duplicate i • Table of Contents Location Schematic 4 Drilling Procedure 5 Proposed Wellbore Diagram 7 Time vs Depth Plot 8 BOP Sketch 9 BOP Equipment 10 Diverter Sketch 11 Geo-Mechanical Plot 12 Shallow Hazards Analysis 13 Seismic Information: Confidential 18 Background Information 21 Casing Design and MASCP Calculations 27 Maximum Anticipated Surface Pressure 28 Logging Plan 30 Mud Logging Plan 30 Drilling Fluid Program 31 Solids Control and Equipment 31 Drilling Waste Storage 32 Cementing Program 33 Bit Proposal 35 Regulatory Waiver and Special Procedures 36 3 1Page , , • • Location Schematic f _ __N, Protected Section Line ._—,_ . a, A SEC 12 T14N R10'N SM AK g SCALE 'I _ 63 m�7 NOTES iID 1.ELIfsu OF HORIZONTATL NO i VER TION_O NIRO.MI DETERIl I BY N09 CPU9 MUTER FRE11 COR!MSE STATE=MEE PEI D—,'711EA PIDAII>IIEr ANO WI= Ed PID=UV OBSERVED OVUM ON NCI CONTROL MIT 2E :AEP NADa1 10. APE 4 EPOCH 2E01 DATllld BENG Pk 2E75567.1)E C 14172E7.82E ELEVATION:16E21 GEM CS PWYDE16 CI4r1141 2)9EEC7TON LSE METS OEIERSINE D — — _ — FRCMTHE PROTRACTED IEEC110H �p CORNER WIL11F� i , a}OONPAOa1 vERMON EAI wAS .....-%s %WED FOR E]kTUM C0EVY6OION. SL-0TTER X11 _ 71308 ! r F �' \ \\\\' �4011111.1IL1 fff .\\._,N, ,011 1 „ , •• ... r, r '. • _ .. :7411:14,-,* <40 \ 4.416 iNlii, v • 1414:-,TME a burs \. \ N \ 4. It. . 8,, j* thivitet'v o4 O TER too. 2 :. N:2675742.5 '.,R N E:327463.3N. LAT: 8119'12.175 N4'3 -� LONG:138'54.912'W\ - NASP ZONE 4 NA 027 \ TER,NNO 1 \ \ ELEV. 160.0' NA D88 \ E:327439.010 \ \ \ LAT: 6119'11.953'N LONG:116056' 404"W \ \ \ ASP ZONE 4 NA027 \ \ELEV. 160.0' NAIID8$ mime. OTTER WELL PAD OONSTR IOTFOM `°I"a PROTRACTED SEC.12 mgrat' T14N,RIM,8111,AK "EM NM MCLANE OONSLILTNG INC. minso...�M �, PROPQBELZ#ATTER WELLS NO.1 142 lain r•r .��1.•.. AS-STAKED SURFACE LOCATION DIAGRAM MUNN% ,mw PAINIIIMIII Mine We lemony COOK INLET ENERGY .� — ,Rim, P.O 901LiOE1 a 1 Gli ... 0 ANCHORAGE,AM DOEOE 4IPage , r • • Drilling Procedure Pre-Rig Work A. Drive/ Drill 10 3/4" conductor to minimum of 125' or refusal. Weld on Vetco Multibowl 11" 5M Wellhead. Install two bull plug outlets in cellar. B. Drill mouse hole. / C. Set up Reserve Pit / D. Lay out matting boards.• Rig Work 1. Move in Rig. 0 i 0,,---r�_,r- 2. Install and function test 11" diverter system. Note: test and rig up must be witnessed byerryz AOGCC. L/ tr Ai.A.,-c._ J Cc' ..V I'd( 3. Prepare for spud - Fill pits, mix mud, stage materials c2 -&. Ial-,eAr- 4. Pick up 9 7/8" bit, motor, and BHA. Run in hole. Clean out conductor. Spud well. 5. 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. Maintain minimum 9.4 ppg mud weight. . d. Excessive connection gas is a sign of insufficient mud weight. Increase mud weight as appropriate. ee. 9 7/8" hole may be TD'd ahead of time it mud weight must be increased above 9.8 ppg to control background and or connection gas. f Run-back to bottom on-APtY�igns ofswabbing on tripsand-circulate-bottoms up. S•�-Le / Primary sign of swabbing is insufficient fill of flow back while pulling off bottom. Y �^� g. Trip tank is to be used on all trips with volumes check every 10 joints or sooner if in tight ' hole. •h. Drill site supervisor to be on rig floor for all trips in surface hole. 6. Circulate bottoms up and mate wiper trip to shoe. Run back to bottom on ANY signs of swabbing. ,, C„,.X rt.'ls- . 1 7. Drop car e. Circulate bottoms up. Pull out of hole. Run back to bottom on ANY signs of swabbing. Note: Open hole logging is not anticipated in this hole section. 8. Rig up and run 7 5/8" casing. Rig up Cement Head. Circulate minimum of one bottoms up. Reciprocate pipe If hole conditions allow,. rash ` x`.4)ae'` ar. ►-�d_ 9. Land casing hanger in starting head. Cement 7 5/8" casing with 100%excess cement (more if carbide indicates). Drain Diverter of any cement. Back out landing joint. 10. WOC for 12 hours. Check for flow. 11. Nipple down diverter. Perform top job if cement is not to surface. • 12. Nipple up and test 11" BOPs (250 psi low/3000 psi high) Test Annular to 1500 psi. Notify AOGCC minimum of 48 hours in advance. C / y 4 BMs —rcip (3 5IPage ck /3° 13. Pick up 6 3/4" BHA and RIH to shoe. Test 7 5/8" casing to 3000 psi. Drill out floats, shoe track and 20' of new formation. 14. Clean pits, mix new EZ mud. Circulate and condition mud while changing over to KCL/EZ mud system. Perform FIT. Starting mud weight is a minimum of 9.5 ppg. u A tiu Fir -4_0 l 15. Drill 6 3/4" hole to 7000'taking surveys every 500'. Make wiper trips as required. Circulate /2-.3-Pt)-- bottoms up. 16. Circulate and condition hole for logging. Pull out of hole. 17. Rig up and Run Baker Atlas Triple combo log as directed. Rig down Atlas. o N - L o� 18. Run back in with 6 3/4" Bit and BHA to bottom. Circulate and condition hole. Pull out of hole. (if dry hole a separate abandonment program will be written.) 19. Change and test upper rams to 5 1/2". 20. Rig up and run 5 1/2" casing. Install cementing head. Circulate minimum two bottoms up. Reciprocate casing during circulation. 21. Cement 5 1/2" casing. Reciprocate pipe during cementing if possible. - -roc_ ../S061 .K-" 22. Land 5 1/2" casing hanger. Test hanger to 3000 psi. 23. Rig up eLine. Make gauge ring run to TD. 24. Run CBL from TD to TOC. Evaluate log. 25. Perforation and completion plan to follow. 6 , , I • Proposed Wellbore Diagram Cook Inlet Energy Otter #1 Proposed Wellbore Diagram § B| / � . | Sa4i %�.5# L-8$ec : 2mEMD!TD OD=$95 )DGm ) v } v _ v A % Chemical mandrel) — K why control lines \ 2-7/8",6.5#,bm, EUE ) k Tubing(CouingOD=3.668") 76 Tubing ) v. ) ) ;• 9787" "Hole ) v © . 1mE�C \ \ƒ 2 At )� 758",2.7# bm,Bc k 4 uD-6.879} i% �A%mmMD/�D 5 se © / it: % t $ ., B Hole $ t Po m1�2 ,17, L-80, -¥ w (Oqg=4.767") 4 K 44 @+oo9DiTVD 7I a I Time vs Depth Plot Otter Well Proposed Time vs Depth o' 10 3/4"Casing at 200' (45.5#, L-80, BTC),driven 1000' Drill 9 7/8" hole 2000' 7 5/8"Casing at 200 (27.7#, L-80, BTC) 3000' r Y 0. el 13 4000' N H N Gl el 5000' Drill 6 3/4" Hole 6000' 7000' 5 1/2"Casing at 7000' (17#, L-80, IBT) 8000' 0 5 10 15 20 25 30 Days 8IPage • • BOP Sketch Aurora Well Service 3000#BOP Stack a I Rig Floor Four Ni6ve s s- Od- 611 •riijh 14:4:+:+:+ .T 8. .11+4+111+1-11+_&150151.15 ■ Choke Line ■ IN Line F F — i I11 i"I ail [ I�} ' CKILLSPOO -I . t+�Iit � +_ FFJJ tr7 E 14'1" tarGng-lel A WOW 3 Y>ae IIIMMOMMEMIN A-3 1116"5K HCR valve 8-31116"SKGate valve C-3 1116"5K Gate valve Vanes D-3 1116"5K HCR valve © E-3"200#Ball Valve 9IPage • 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 _.a --- 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) 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. 101Page • • Diverter Sketch Aurora Gas l Aurora Well Service Surface - Diverter Line Rig Floor Flow Nipple 4a AWS 32^ AnnularPreventer 741UMW Shaffer er 3M Irma T" 8-10'_ Lr. 135E-5ld 13-518 11.1 12"Hydraulic Knife Valve 12"1.501 ANS! 12"Blue! lst / - 100R of 12"0.375"Wal" 1111 l (�1 �••t� 7 ^ v 11.1, _ 3-5 SM DSA Rental 3-5!"Sld 7► 13 14' w.r...�,ww 11"5MA Wellhead Ground Level=? ------- ---- 0-304"' i:i 12" 7/611 ( Page • • Geo-Mechanical Plot Otter Proposed Geo Mechanical Plot Equivalent Mud Weight(PPG) 8 41 10 12 14 16 18 20 0 I Sterling 950'+/-950' 10 3/4' 1000 2000 Beluga 2735'+/-256 ' 7 5/8" ___\li_ . ._ 3000 Calc Pore Pressure 4000 LL L a+ C. U MudWeight cl 5000 (Pore Press. +Drilling 6000 margin) _Tyonek 65C0' _ __ Frac 7000 Gradient 5 1/2" 8000 9000 121Page • • Shallow Hazards Analysis Shallow Gas potential Otter Prospect Area A thorough review of all wells drilled within five miles 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 with shallow gas have been identified from these 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. One shallow anomaly is apparent on line No. 10 corresponding to a depth of approximately 1200'. This anomaly is approximately .6 miles west of the proposed well and is not apparent in close proximity to the drillsite. Texas International Petroleum's Pretty Creek St#1 (2- T 14N R 10W was drilled approximately .9 mile immediately Northwest of the planned well to a depth of 6570'. The well was drilled toe 9 I a depth of 2264' utilizing muds with a weight of 9.4—9.8 ppg with no shallow gas �� accumulations encountered. Conditions similar to this well are anticipated for the proposed( � 3 y`� shallow section of the new well. 3.15'' Although no shallow gas zones are anticipated to be encountered in the proposed well, appropriate care will be exercised while drilling this interval to insure adequate well control should a shallow gas zone be encountered unexpectedly. The drilling histories of the twelve previously-drilled wells closest to the Otter prospect were examined for difficulties encountered above 2,500'. The wells examined are: Well Distance from Otter Coffee Creek#1 Lewis River B-1 Pretty Creek Unit 224-28 North Tyonek State#1 • East Lewis River 1 Lewis River 1-A Lewis River 13-2 Lewis River C-1 Lewis River D-1 Pretty Creek 1 Pretty Creek Unit 4 Theodore River PCU 2 These wells were drilled to various depths, all greater than 2,500',but none encountered significant difficulties in the surface interval. One well,the Lewis River#31-2,encountered some tight spots just above 2,500'but had no problem reaming them out. None of the wells experienced losses,kicks or 13I a e • • indications of shallow gas in the surface interval. The offsetting wells were drilled using initial mud - weights of 8.4-8.7 ppg and achieving 9.3-9.6 ppg by 2,500'. Conclusion Examination of the drilling histories of the offsetting wells and correlation of their geological sections with Otter using well logs indicate there are no shallow hazards to be expected while drilling Otter ✓ Prospect as long as mud weight similar to or exceeding those used in the offsetting wells are utilized. Well Information Casing Tops Plugs Texas International Petroleum 30"@ 41.5' Beluga j c 6 55 Sx from TOF @ 6475-6283 Pretty Creek St#1 20"@ 145.8' Tyonek 3 2,92 60 Sx 6014-5900 API 50-283-20043-00 Permit#74-041 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 6,756'-7,133' Cement Plug, Coffee Creek#1 RKB Sand 4,780' EZSV @ 6,800' API: 50-283-20094-00 Permit No.97- 9-5/8"@6,715' Chickaloon 5,537'-5,785' Cement Plug, 219 RKB 6,630' EZSV @ 5,785' Mesozoic 4,009'-4,415' Cement Plug, Sec 19,T14N,R10W,SM 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#1 • i 20"@ 371' RKB Tyonek 6,550' 9,850'-9,950' Cement Plug API: 50-283-20052-00,Permit No.76- 13-3/8"@ 2,399' Middle Groung 31 RKB Shoals 8,312' 8,550'-8,650' Cement Plug 9-5/8"@ 8,557' 6,658'-6,710' Cement Plug, Sec. 10,T14N,R9W,SM RKB 6,710'-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 14IPage 41111 III 1 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.86- 076 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. Well Information Casing Tops Plugs Cook Inlet Sand Phillips Petroleum 13-3/8"@ 322'MD 1,684' 4,831'-4,964'Cement Plug North Tyonek State#1 9-5/8"@ 1,321'MD Beluga 2,527' 3,931'-4,064'Cement Plug API:50-283-20040-00,Permit No.73- 16 7"@ 6,037'MD 3,724'-3,991'Cement Plug Sec.25,T13N,Rl 1 W,SM 3,079'-3,230' Cement Plug Location:695'FWL, 1679'FSL 2,702'-3,126' Cement Plug Elevation 227'MSL 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.75-6 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 10,678', 10,500',8,012' Elevation: 15'GR 9,646'to 11,625' 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 15 Page . 411 Cities Service 30"@ 48' Beluga 2,279' Lewis River 1-A ! 20"@ 363' Tyonek 5,864' Bell Island API:50-283-20047-00,Permit No.75-5 13-3/8"@ 1,368' 9,142' Chickaloon Sec.2,T14N,R9W,SM 9-5/8"@ 8,147' 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.68-1 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 Well Information Casing Tops Plugs Upper Beluga Union Oil 20"@ 75' 2,700' Middle Beluga Lewis River C-1 13-3/8"@ 368' 3,500' API: 50-283-20061-00,Permit No. 178- Lower Beluga 075 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' 161 2 _ =s , . Cities Service 20"@ 359' Beluga 2,096' 7,135'-7,235'Cement Plug Lewis River D-1 13-3/8"@ 2,395' Tyonek 6,210' 6,180'-6,280'Cement Plug API:50-283-20068-00,Permit No.80- 141 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 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.201- 193 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 1 13-3/8"@ 2,032' 3,215'-3,450' Cement Plug API:50-283-20022-00,Permit No.69- 15 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. 17IPage • • Seismic Information: Confidential 33 34 36 aF a�f V Y • $q 4 n11 w g Sys i01 0'1, 1 C, 1 1 % w , 1a SO T1IN RIOW uw 19 20 coon Wel Envy) COPFINENTLAL Ram lxallon:Oar la000a o zm xon Orr N111/1sal014 Link 2-0 aw Nw mm+x n 1500 18 I Page 0 • di "d A p , r. es p ra a : p F• L: Z -7 ' •Ti; ",,7'',,,f;',.' -,-,rr - ''' - • .. „ •;;;A. ', - , f. 6 ft 0 ./ I . . e , f 0. 11, .4 0 . t , ; °41, j I If . 1 1 . ' 4 , i, I i 4t1 •4 ' 1, I'4'' /4 In I I ( ' t A / 6 r I •.: , 4) iil tr., t . , .... Ail 2 . t $ ' ' I ' . 4 iii . . Ti t f . .„,,,A,..t....,., . I° '10 1 0 I, o li r I 1 411'i t • . ,, , 0'I )4,1° , 'I i „ i , - , . . , . "WI . 1 • It " '' .,11: 1 • 1 00., 0 , ' P t=" t . 'IP " 4 MI . I. , • ., , J 0 II • 0.•„„,. : 4,!:•..:,,,,,, .,, d,.. a.1 , f:0 4.,.;i1. Cil ..°5 ,,., b .. rt?,:,.,..• ' I I, t'' ' I A.:.14 1. 4 oiIe. If 0e '• 5 11,, .,„ 10111111.P. : L , .. ,..."; „ N.) •••••a 4 0 ( iS 0° ,ii 1 " i 06, i °41 # +,1,,•.';:..-':,-, cr) , rilI , , t * ,, MIMI - , • . . ' f 1 11' t 4 fr. 1 '/' tP ., ' rrl t• , t ` I .4 , ? .,, , 4 . 1 '1,04 I 4 0., 4 •,..... , , • 1 . , , , ',1,' ° 1 • Ill 1 t 1,1! , , i 6, ,t.1:, 1,41 : / 1 I I / r iiiiii l'Al.. 1 i 1 ' ' t 4: 1 I ' i' ' ,, 1. , : „fill',• 1 li 1,4 ,•,,, fis 0 1 , 1 1 1 f i ,. 1 .. , 1 ii, i,t..11,1 , .1-. ' 2 "., E r-,': ; v) • 19 I P d 9, e 0 • La Z " .!,1 ! 1 4 4 • I 41' it 04 ry, a,40 0 A 1 • 0, / , r. Jr 1, , R , CI Ii . J 3,4 . , " f r PPPl 1 l� JI ,1 :� ro v Ni 11111.11. n ► ! ,�, f + a0 '11,1 .l t.\, 1 ! < errl 0 b '. % 1 M , ` I 0 ► y ro , ' , -)\ W 4 • 1IACII i . li~.1� 1 ,I + .1,0; • : .,,, , i II # it„,,. Cle n 'k'r ! MI y Moi•1 ►.. 4' i.r' Y'a,V. r�. `+ M � 1+i r , ;, 1 t ► 1' ► 4t o -� i ilk, ' ' ..,,.I0'1,31, , 1 1!' • t. " •' ► , i*,. ...lit.,1 ; F''''. . ,''.. ' 1 'k•••,. II + Y S h ‘ ► \I I ii I 1 fl ri < ._ . _ 5 o 5 i 20IPa.ge • • • Background Information Pretty Creek #1 Sec 2 T14N R10W Cook Inlet 0 , , loon 411" . ! 1 2000 -__.. I , t 1 1 r I I 1 3000 , ,. . , , , W - 44 I a. •C 111. 4000 L I5000 —.. , , INr. I II t I 1 , r I i , i .. 1 .... .. 6000 -I- — I I 01 . I I I I .PPB 7000 . __. _ • 10.00 100.00 1000.00 Sonic Log Travel Time (Ns/ft) 21 Page • • Cook Inlet Energy Otter Regional Temperature Gradient Temperature, deg F 0 20 4-0 60 80 100 120 140 160 180 ° • � ' 111111N1111111111111.11- 11111111111IBe 1I1C � '�f ' Nn iiii!fliiIjIIII1IIl1iU lii _10. 1II Inniiiiiniii II _i o i ' t._ i „ I `_. ,., . !nIIIIII.Ini I IIIc II ! . ; i ILII IIIA milII t _ ' NI 1•IIIin ii II _ 1 _11 I •• illinln I l Ell ``P e`L rr I1elllnlnlil III II 44°0 I . i ._ � III _�_LL f,..1 II1 ._ Milli n Pr - 11111111i=111 ni�� nils III ■1P r. :_1 III 111111111111111 ' 11111 I t 11 : In 11111N11111111_111111. . III n 6000 l I. i. Dive '3-2__1ii/lnl _ ' w N z I'liili Ililili I INM f iiiilnite is,Ri er. A , . morme T 1111111UIewc ki of1 1 , ill Ili sUraa III._ 11111 1.: is River 1 II 11111 i!uiiiiii !ir� is fly-r. ilkiln i Ieo! rc � Ilnnliii ' l kIII i. lnlnlI U11111lr:rin I n III ►Ininlllliriiiiiliiiinnnn. l I ' nul ! „l!fIIIA= InlnfNNIhlI WiUhiRIIJll1-- IIUI1 11111111111 II i r i asil; , I • Composite Pore Pressure Plot Mud Weight(PPG) E1.5 9.0 9.5 10.0 103 11.0 1,000 zoacr 3,000 — —Otter-Pore Pressure E ,rno O i 5,13100 6,134:10 7,000 8,000 9,01:0 . • Cook Inlet Energy. Composite LOT Plot Eguhaslat'rt Mud Weight(PPG) i S.6 1{50 t2.0 1+17 16.0 ILD 3p.p 1,0154 • 2,070 • Petty Cock Un 224-28 (LOT) 4gOO ti w PrettyCrrak Unit 4(LCD 7r � Coffee.CrP.P.k 1 lIa1T) f3 5,000 _.. LOT Form Confirms Formation break to 16.0t PPG-EMW at 6,795' "—Otter:roc Gradient Daily Rcpart Ooas Not Confirm rorma Lion Break to 16.0 PPG-EMW at 5,375' 6.000 7,OOG SAC 9,000 _ 24IPage S • Composite MW Plot Mud Weight(PPG) 8.0 $,5 9.0 95 10.0 1D.5 11.0 • 1000 _. .—. _....__. 2000 3000 - _ i^Otter-Mud Weight Plot 4000 • -... ._ r d 5000 --._.. .- • 60DD -- --• • 7000 $A04 - soul? L __ ` • S _ _CgQkinie&Eatra Comite Frac Gradient Plot EquWalent Mud Weight 4PP131 8.0 1U.J 11.0 14.D 16.0 1.03 0► 1,004 _ ?AMY �..._ 3.000 Otter frac Gradient 4.070 5.000 _. 6,000 asap $.DOG 26IPage • r Casing Design and MASCP Calculations MD(ft) Connection API Ratings Casing Size .._ Weight Grade Hole Size (Ib/ft) (inches) (in) Makeup O.D. Burst Collapse Tension Top Bottom Type Torque (inches) (ft lbs) (psi) (psi) (kips) 10 3/4" 0 200' 45.5# L80 BTC 11.46 N/A* driven 5210 2470 1040 7 5/8" 0 2,000' 29.7# L80 IBT-M 8.5" N/A* 9 7/8" 6890 4790 683 5 1/2" 0 7,500' 17# L80 IBT-M 6.050 N/A* 6 3/4" 7740 6390 397 Comments: *The make-up of the buttress connection will be to the proper mark. Make up and Bakerlok all float equipment to joints prior to running in the hole Casing Design Casing Shoe Safety Factors Casing Setting Mud Wt Maximum Size Weight Grade Depth When Surface (In) (lb/ft) (TVD ft) Set Pressure (lb/gal) (psi) Frc. Formation Grad. Pressure Burst Collapse Tension (lb/Gal) (Ib/gal) • 7 5/8" 29.7# L80 2000' 9.8 15.7 8.8 1484 4.7 4.88 11.5 51/2" 17# L80 7000' 10.2 16 9.8 2867 1.7 2.7 3.3 Comments: 271Page • • Maximum Anticipated Surface Pressure Casing Size Setting Depth MAWP* MASP** (in) (TVD) (psi) (psi) 7 5/8" 2000 3000 1484 5 1/2" 7000 3000 7 ZO? *MAWP = Maximum Allowable Working pressure**MASP = Maximum Anticipated Surface Pressure Well Control and Casing Design Calculations Surface Casing: 7 5/8'"' (2,000' MD / 2,000' TVD) Collapse 9.8 ppg mud wt at setting depth-evacuated = 9.8 ppg x .052 x 2,000' = 1,019 psi Safety Factor = 4,790 psi/ 1,019 psi = 4.7 Burst @ Surface a) Frac Pressure @ Csg Shoe = (15.7 ppg + 0.5 ppg)X .052 X 2,000' - (.1 psi/ft x 2,000') = 1,612 psi - 200 psi = 1,484 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (9.8x.052x7000')- (0.1 psi/ft X 7000) 7 si - 700 psi 2867 psi Use lesser of a or b = 1,484 psi Safety Factor = 6890/ 1,412 4.88 Tension no buoyancy, hung in air = 2,000' x 29.7 =59,400# Safety Factor = 683,000/59,400 = 11.5 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 6890 psi)- ((9.8 - 8.33)x .052 x 2,000')) MASCP = 5,359 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 28IPage : 5 %" (7,000'MD/7,000 TVD) Collapse 10.2 ppg outside, = 10.2 ppg x .052 x 7,000' = 3713 psi Safety Factor = 6390 psi/ 3713 psi = 1.7 Burst C, Surface a) Frac Pressure @ Csg Shoe = (16.0 ppg + 0.5 ppg)X .052 X 7.000' - (.1 psi/ft x 7,000') = 6006 psi - 700 psi = 5,306 psi b) Surface Pressure = Max Pore Pressure - Gas Gradient x next Casing Depth = (9.8 ppg X .052 X 7,000') - (0.1 psi/ft X 7,000') = (3567 psi) - (700 psi) = 2867 psi Assumption under b) is made to demonstrate worst case surface pressure if the reservoir had not been depleted. Use lesser of a or b 2867 psi Safety Factor = 7740/2867 = 2.7 Tension Hung in air = 7,000' x 17# =119,000# Safety Factor = 397,000/119,000 = 3.3 Maximum Allowable Surface Casing Pressure MASCP = (0.8 x Casing Burst) - (Mud Wt. - Backup Fluid Wt.)x .052 x TVD MASCP = (.8 x 7,740 psi)- (10.2—8.3)x .052 x 7,000') MASCP = 5500 psi NOTE: MASCP is constrained by 3,000# BOP Limit! 29 IPage i • Logging Plan Open-hole Triple Combo Logging services(Gamma Ray,Neutron,Density and Resistivity). Estimated • open-hole logging interval from TD of 7000' 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. / -Z./4k 4 30IPage i • Drilling Fluid Program Otter #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.) 80-150 30 25 10-18 unrestricted Production Hole 2000'-7000' Mud Type: 2% KCI/EZ MUD Mud Properties / MD Density Viscosity PV YP 10 second Gel (Ib/100sf) — pH API Filtrate (cc) 9.5N 13- 8.5- 2000'-7000' 10.0 40-53 6-30 20 8.5-9.5 9.5 <5.0 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 31 ( Page • • 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 lined secondary containment area with approximately 3,000 bbls of total waste storage capacity. A minimum of 24" of freeboard will be maintained at all times. The area will be covered with a secured tarp or other similar impermeable material to prevent the accumulation of precipitation. 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. 32 ' Page • • Cementing Program Otter #1 Cementing Program Surface Hole 200'-2000' Casing Type: 7 5/8", 29.7#, L-80 BCT-M Mud Type: waterbased Setting Final Compr Volume MD Density TOC PV YP Time Strength (psi) (bbl) (hr) @48hrs Type 1 Gas Tight 12.0 0' 123 26 4:48 3491 61 Weighted Spacer 9.3 0' -- 4.8 -- -- 40 *Weighted spacer:24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg Volume Calculations 200 ft x 0.22 w/ 0 excess = 44.6 cf Alt( V 29 cf/ft 1,800 ft x S1.07 •1-1 w/ 100 excess = ,271.5 cf 7 V, 70 cf/ft 80 ft x 0.25 w/ 0 excess = 20.6 cf(inside pipe) 78 cf/ft = 342.7 cf TOTAL SLURRY VOLUME = 6lbbls Fluid Specifications Fluid Volume e Vol Fac Amount and type of Cement Slurry 343 2.14 = 160 sacks Type I Cement+0.005 lbs/sack Static Free+ 1% bwoc Calcium Chloride+2%bwow Potassium Chloride+ 25%bwoc LW-6+0.6%bwoc CD-32+1 gals/100 sack FP-6L +0.4%bwoc Sodium Metasilicate+0.9%bwoc BA-10A+5% bwoc MPA-1+70.1%Fresh Water Displacement 88.2 bbls Drilling Mud @ 9.3 ppg '� I' 5� SUPER() 3 - a " i1' 33 ' Page {-1 • • Production Hole 2000'-7000' Casing Type: 5 1/2", 17#, L-80, IBT-M Mud Type: waterbased Setting Final Compr Volume MD Density TOC PV YP Time Strength (psi) (bbl) (hr) @ 48 hrs Class G Slurry 13.5 1500' 87 19 3:47 2478 108 Displacement 10.2 0' 9.0 14.0 -- -- 154 *Weighted spacer: 40.0 bbls SealBond w/3%KCL+ 19 lbs/bbl Potassium Chloride+ 123.7 lbs/bbl Barite-Sacked @ 11 ppg Volume Calculations 500 ft x 0.09 w/ 0 excess = 46.4 cf 28 cf/ft % 4,700 ft x 0.08 w/ 40 excess = 549.5 cf 35 cf/ft % 80 ft x 0.13 w/ 0 excess = 10.4 cf(inside pipe) 05 cf/ft % = 606.4 cf TOTAL SLURRY VOLUME = 108 bbls �/ Fluid Specifications Fluid Volume(cf) Vol Fac Amount and type of Cement Slurry 606 1.84 = 330 sacks Class G Cement + 10% bwoc BA-90 + 0.005 lbs/sack Static Free +2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 0.5% bwoc Sodium Metasilicate + 82.3% Fresh Water Displacement 153.9 bbls Drilling Mud @ 10.2 ppg 34 J tl i • Bit Proposal Bit Summary Interval MD Size (in) Type IADC (ft) Surface: 0-2000' 9 7/8 Toughcutter 117M Production: 2000'-7000' 6 3/4 PDC M433 35 ' Page • • 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 Otter#1 exploration well is located on a logging type road 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 < accessway. 36Int�. . i Page 1 of 2 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Friday, May 04, 2012 2:29 PM To: 'courtney.rust@cookinlet.net Cc: 'David Hall' Subject: RE: Wellhead Otter 1 ( PTD 212-028) Courtney, The below proposal for the wellhead waiver is approved. This is a one time waiver for this type of wellhead with threaded connections. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Courtney Rust [mailto:courtney.rust©cookinlet.net] Sent: Monday, April 30, 2012 4:07 PM To: Schwartz, Guy L (DOA) Subject: Wellhead Guy, In an effort to insure the integrity of a connection non-compliant with regulation 20 AAC 25.035.8 per the interpretation supplied by the AOGCC, Cook Inlet Energy proposes to apply Baker-loc to the threads of the annulus outlet. The connection will then be hydro tested during the BOP test. Cook Inlet Energy will ensure consistent monitoring for leaks by the parameter listed below. -During BOP test a person will be positioned at the wellhead area to monitor for leaks at the connections. -During Drilling operations there will be a data entry in the drilling report that the annulus valves have been checked for integrity hourly. -During production of this well, if it goes to production, a gauge will be in place to monitor annulus pressure and the connections will be monitored for leaks. If you would like this in writing I can arrange a formal letter, Thanks Guy, Courtney 5/4/2012 0 • @G E Oil & Gas t' 47.7" y_ 30.2" 2-9/16.5M _ 07 2-9/16"5M i. o 11.4" 2-9/16.5M 2-9/16"5M 0 obi 1 44.8" _ -_,. O) Ll�^ 123.0" 2-9/16"5M O4 tio. 7r-- yf-9-�)`. tt 7_1/16-5M 17 1 F -=,'l ]{ i — 382"to it 1 II 24.," 'iE t ii l II' ✓0• �! Cii . I o` ., - I.4 • - oyo. oyo. 1 71,, 2-1/16'SM 11"5M !I' 1 ..;i —i 0 ,s.. f �. rui i 1ihI! rl m1 .f�� j�7 Ijilk 4/ QA ` I 2-1/16"5M CCir1 • II1= 2'5M 10-3/4"Casing 7-5/8"Casing 5-1/2"Casing 2-7/8"Tubing 1/4"Control Line This drawing is the property of GE Oil&Gas Pressure Control LP and is considered confidential.Unless otherwise approved in writing, COOK INLET EN ERG / LLC neither it nor its contents may be used,copied,transmitted or reproduced except for the sole purpose of GE Oil&Gas Pressure Control LP. OTTER#1 10-3/4" x 7-5/8" x 5-1/2" x 2-7/8" 5M LSH/Conventional DRAWN BTF 14FEB12 APPRV Wellhead Assembly, With T-EBS Tubing Head, T-M40-CCL FOR REFERENCE ONLY Tubing Hanger and Adapter Flange DRAWING NO. AE21399-B Page 1 of 2 • e - Schwartz, Guy L (DOA) From: Courtney Rust[courtney.rust©cookinlet.net] Sent: Wednesday, March 14, 2012 4:28 PM To: Schwartz, Guy L (DOA) Subject: RE: Otter#1 (PTD 212-028) Guy, Our time vs depth shows 25 days for operations. Due to the fact that the rig and equipment are in snow we are adding a few additional days for the rig move which we anticipate to begin tomorrow or Friday, this would make for an approximate spud date of March 29-30. We did set the 103A" conductor to 157'. Here are the additional items you requested. 1. Page 14: the Beluga and Tyonek tops are missing for the Pretty Creek St#1 well. a. Top Beluga 100' b. Top Tyonek 3882 2. from 200'to 2000', mud density will be maintained between 9.4 to 9.6 as required to control connection gas. 3. from 2000' to 7000', the mud density will be maintained between 9.5 and 10.6 ppg as required to control connection gas. 4. What is CIE's geophysicist's interpretation for these reflectors? What is the depth range for this package of reflectors (depth range in feet, both measured and true vertical subsea)? Do similar reflectors appear elsewhere on the seismic lines in this area? If so, are any of them penetrated by nearby wells? If so, what are they?The package of high amplitude coherent reflectors range from approximately .7142 - .9 seconds at the wellbore. These most probably tie to near and within the Tyonek formation and are generally probably tied to the coal stringers seen in lwr Beluga and Tyonek formation. The events are not seen as strong on the dip line and are probably masked to some extent by the South thrusting fault shadow. The depth range for.7142 to .9 seconds is 3398'—4327' MD(3223' to 4152'SSTVD). 5. CIE's geophysicist observed no other indicators in the seismic data that could signify shallow gas or geopressure, such as bright spots, coherency loss (dim spots),gas chimneys or time sags. But we would expect to see the same type of events on seismic that are indicating the normal Tyonek stratigraphy including sands, shales and coals. The stronger events are interpreted to generally tie to the coals. Coals across the basin generally exhibit stronger amplitude and better cohesiveness than normal sands, shales and sitstones due to the greater velocity contrast. The only anomaly's observed that we feel might be associated with shallow gas is the one on line 10 near shotpoint 11130 at around .28 - .3 sec. that has been previously identified. This event does not appear to underlie the area being penetrated by our wellbore and is not considered a threat to cause drilling problems in our planned well. Let me know if there is anything else and we will get that to you as well. 3/14/2012 Page 2 of 2 • Courtney From: Schwartz, Guy L (DOA) (mailto:quy.schwartz@alaska.govl Sent: Tuesday, March 13, 2012 11:53 AM To: Courtney Rust Subject: Otter #1 (PTD 212-028) Courtney , A couple more questions came up..... Can you update me also on your drilling timing. Are you mobilizing the rig yet. Conductor set 1. Page 14: the Beluga and Tyonek tops are missing for the Pretty Creek St#1 well. 2. Page 31: Drilling Fluids Program indicates that from 200' to 2000', mud density will be maintained between 9.0 and 9.5 ppg. But on page 5 of the application, the Drilling Procedure says to maintain 9.4 ppg minimum mud weight. What mud weights are planned from spud to surface casing point? 3. Also on page 31: Drilling Fluids Program indicates that from 2000' to 7000', the mud density will be maintained between 9.5 and 10.0 ppg. But on page 12 of the application,the Geo-Mechanical plot suggests a mud weight of 10.3 ppg at 7000' MD. What mud weights are planned from surface casing point to 7000'TD? 4. On page 20,the seismic line presented in support of CIE's shallow hazards assessment displays a series of high-amplitude, coherent, parallel reflectors, both positive and negative. What is CIE's geophysicist's interpretation for these reflectors? What is the depth range for this package of reflectors (depth range in feet, both measured and true vertical subsea)? Do similar reflectors appear elsewhere on the seismic lines in this area? If so, are any of them penetrated by nearby wells? If so, what are they? 5. Did CIE's geophysicist observe any other indicators in the seismic data that could signify shallow gas or geopressure, such as bright spots, coherency loss (dim spots),gas chimneys or time sags? Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 3/14/2012 Page 1 of 2 • • Schwartz, Guy L (DOA) From: Courtney Rust[courtney.rust@cookinlet.net] Sent: Thursday, March 01, 2012 3:18 PM To: Schwartz, Guy L (DOA) Subject: RE: Otter#1 PTD Attachments: Cementing Program_Otter#1.xlsx Guy, Thank you for getting back so quickly on this. 1. 4" pipe rams on top, blind on bottom 2. The Mud loggers drop carbide that creates acetylene gas and shows up as a gas show to determine hole volume. 3. Understood,do you wish us to resubmit the procedure including this? N 4. I can correct them if you can tell me where I'm off. 5. The minimum leak off test is 12.5 ppg and anticipated is 15.7 ppg 6. Will do. 7. 4" XH Grade S135. 8. Definitely.Attached are the correct calculations. 9. Understood. 10. Understood. Courtney Rust From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, March 01, 2012 12:03 PM To: Courtney Rust Subject: Otter #1 PTD Courtney, I have reviewed the PTD for Otter#1 and have some follow-up comments and questions: 1) Can you provide the initial BOP ram configuration for testing the BOP in step no. 12 .( what size for top ram and assume blind on bottom) 2) What is the Carbide you refer to in step 7? Assume it is similar to nut plug used to calculate hole washout when you circulate mud around. 3) In step 8 and 20 you need to have safety joints with crossovers made up for each casing run ( 7 5/8" and 5.5" ) 4) On box 17 of the 401 the values are a bit off... downhole BHP = 3567psi and MASP = 2867 psi . I see where you got your numbers though. 5) In step 14 I need the minimum acceptable FIT or LOT . and your target FIT. 6) Provide a " as built" showing rig , camp and diverter line setup. 7)What drill pipe are you using ? grade and size. 3/1/2012 Page 2 of 2 • 8)The surface casing cementing calculations appear to be wrong. Looks like the OH X 7 5/8" hole volume is incorrect. 9) There may be more details needed regarding offset wells. You definitely have a good start with those. AOGCC Geologist hasn't started to look at the permit yet so he may have more questions... The shallow gas plot on page 20 shows some pretty good returns at about.7 - .8 ms. We are really analyzing the surface casing set points .. shallow gas hazards and mud weights so be ready for a few more questions. 10) No issues with the 12"diverter... I am still working the SSSV issue. Alt for now.. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 3/1/2012 S • Otter #1 Cementing Program Surface Hole 200'-2000' Casing Type: 7 5/8", 29.7#, L-80 BCT-M 4.1\.V.7 Mud Type: waterbased MD Density TOC PV YP Setting Final Volume (bbl) time Compr Type 1 Gas Tight 12.0 0' 9 14.0 0.2 2500 61 Weighted Spacer 10.0 0' -- 4.8 40 *Weighted spacer:24.0 bbls SealBond w/3%KCL+19.8 lbs/bbl Potassium Chloride+67.8 lbs/bbl Barite-Sacked @ 10 ppg Volume Calculations 200 ft x 0.2229 with 0% excess =44.6 cf cf/ft 1,800 ft x 0..2148 with 100% excess = 774.3 cf cf/ft 80 ft x 0.2578 with 0% excess = 20.6 cf(inside pipe) cf/ft = 839.5 cf TOTAL SLURRY VOLUME = 150 bbls Fluid Specifications Volume Fluid Vol Fac Amount and type of Cement (cf) Slurry 839 2.12 = 392 sacks Type I Cement 0.05 lbs/sack Static Free+.2%bwoc R-3 + %bwow Potassium Chloride+25%bwoc LW-6+0.6%bwoc CD- 32+1.gals/100 sack FP-6L+0.25%bwoc Sodium Metasilicate+ 0.9%bwoc BA-10A+5%bwoc MPA-1+69.3%Fresh Water Displacement 88.2 bbls Drilling Mud @ 9.3 ppg Production Hole 2000'-7000' Casing Type: 5 1/2", 17#, L-80, IBT-M Mud Type: waterbased MD Density TOC PV YP Setting Final Volume (bbl) Time Compr Class G Slurry 13.5 1500' -- 2.1 0.2 2200 108 Displacement 10.2 0' 9.0 14.0 154 *Weighted spacer: 40.0 bbls SealBond w/3%KCL+ 19 lbs/bbl Potassium Chloride + 123.7 lbs/bbl Barite- Sacked @ 11 ppg Volume Calculations i a 500 ft x 0.0928 with 0% excess =46.4 cf cf/ft 4,700 ft x 0.0835 with 40% excess = 549.5 cf cf/ft 80 ft x 0.1305 with 0% excess = 10.4 cf(inside pipe) cf/ft = 606.4 cf TOTAL SLURRY VOLUME = 108 bbls Fluid Specifications Volume Fluid Vol Fac Amount and type of Cement (cf) Slurry 606 1.84 = 330 sacks Class G Cement+ 10% bwoc BA-90 + 0.005 lbs/sack Static Free + 2% bwoc Calcium Chloride + 2.5% bwoc BA-56 + 0.1% bwoc ASA-301 + 1 gals/100 sack FP-6L + 0.5% bwoc Sodium Metasilicate+ 82.3% Fresh Water Displacement 153.9 bbls Drilling Mud @ 10.2 ppg • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. TRANSMITTAL LETTER CHECKLIST WELL NAME PTD# V Development Service Exploratory Stratigraphic Test Non-Conventional Well FIELD: � f �t - 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 i 0 N Np M O 2 V @wo 0 o) o , , , , , , , , , , , 3N Ncn O a p N o _0 CO•c L O >>N O' —' N O.30 U Q CO 0 N f6 3 , E. 0 m 0) m •0, Os C. 'y U c'6 , , , , a) , "O, , E. a). as O a) > 4 30 a, ' o- O� U �,m o Y COC ti ` W p � o ma -0 0m a t6 nC.) f6 o v (0 0 m —°rai E O a u), �ain c Cr) • E °) o L U.iCo_ , , , U..- , 6 E o av C E , , 0E > � N , , , o CV' y o o > o N 0.`t m 5., ��� o O. O , C' O, f6 N E N a) c Z. co 0) U) co'co Tu. 2 rYi @ o w 3 z a)3 D O. U C a �, W' °� �' , 'O L o, O a m N �- r E' rn _ a E o o c� N—o �, 0, n a c 0 3 E w ori i 0), � � U a). •a> O, ri O. O. '�� �� N 0 O V jX C• p. O N' oY O' O" ' c , o O' a) 0 a) O , , = � a) O, O 't M N' a O N O a) M, , , N C' V a Cn O W. (a .N �� p,. � �� a). O « 00 a �' W'' �,.� COy N =p a O a) 8 o. Q. �, C - a) -o �' O co pp, co a) L . M a c N c E a) ua, w w cn c°i o m, -o p a) m N� a). o... � -6 a) @, 3: M, : tea),, 3, � CO �, `0 ami, E �. >M c 0 o, E E o. 3. d, as - v, r u'i' a o' c o 0 o--c CI w� .o-� �' 5 � y o C' a) O, � E N' C' M' G t O O -y m ta e c v; c n �' a 3. v ami' o m m a m N O r 3� N J' � � , (0 •( C. N' N co �, N. a) 7 C O, U co 0 (6 E a) o 3 p o iy a w 3 N O o a N �, a Q)E w co C7 N m V, Q. a U N ca co 0 `a d' v ( f0: o, n of 2' m-C n a • p —, U) 9-t CO C, �, 0 � .c U -' X, �� M. 0 4 a V 0 N(O.a j Z m� � X d� N a) � 0 7 0 � rn N CO' Q� rn N� X �. �. p @, ?oo W w �, w a > W 0 cn I— iY >' S' �� 2 E. z' w w oi, O' 0, p E o a , , , , , (0m� U) am w , ,1 , , , „ „ , , , . , . „ , moi 3 Q Q , „ „ , „ , , a a o, CO, a)CO a, Q, N, CO, a, CO, a, Q. Q. Q, aa):. a, N, a, a aN) a, Q, CO, a, d, a, a0), a a, a, Q, o, a, a, Q aa)) a z z >- >- z, >- >- }, Z, }, }, >- >- >- Z, z; z >- r, }, >- >- >- >- z, >- >-, }, >- >- >- >- >- z, Z >- >, Z >- �V O n, a N o E. c a), l a,° V) O a v, T 7 o T 0 ' E c _ o O p a) E a y > o N• .Oco ay 'E. O� a)� , 0 n fa. U,. u. N a) 1 ItItI as u) O t ! I C' y, @, C- Ta) N. ��oa a) o q a �, 03. �, �, m a) m > ' 0 •o o xs E a) m' . ' co :' 0 3 a) o = L Z y, CO' 3 m, m c CO -C c v,' v o. o, Q ' v, ar a) .. .a o c .O o' N c O, Ca N a D O ` O m O O p) o. N a N C, a) C co E, E — C C E N O C C N. F- _ C O otf a) d' C a) w a) 0. N L a C C JQ N O O V V C V (a N. N O �� �� CD C U.. 'p, @ C U O. y. a �. N. 3. > @ Y a) N o a o a) a) c >, oUflft! °' P m � . a ° o o a) g E m m m Q m a v) 1 T O rn o a)> E C Z, O' EO 3o I.cm 3c7 . O @@ m. mami CO ` c cm M. @ci, ow o a 3 oc >,C a) in vi - a a 'o O •- : 3m m o aN a .-, (n o, ,31) COLLP o. .a O C' .@, a) a' .� U• O7 ad c m ' t' O' ca. E� p O.. N, O O C' O' U -O a). (6 O O) C •O a N. O a) a 'o. la. a) ca O, N Y. N. O E N E ( O O co C W U a) a o -O a) a) a) a) 0 7 a C v U O- O N a) — "O a) N -O N E O O -- 7 C O O 06 i N� L, a a a s Q) N 2G' a to 0. a L_ 0' O p_ @, @. of 0) 0 O a) Oj C U 3 2 a O N O a V W U, CO, E.. O. O ca.. N' 4 M N, m, C C 7 7 N' as O' 'o C -O. •N N J rn .m-• N' C• G. a a N co T m a) N' a) 3 E .O C o• o•• N, c C m •2 a w, N p O a) a) T '-' a) iL Z is a •o •o -o 0 c 0 a -0 .n a r. Cl.), im 'N °)0 0)) 0 0 co r. 3 m v' ucn) .E 0 a) _ n c. @ c E — N' a) E N ?� .a)) a)' m 'O o' t C C 4; '3, 7 O, U m a) U a) - - d •7 � co, ° C U N a 5 V C >' - c U a' cfoi c a)' `o `o 5' ° E cf6) vi v' -o m ,' , E' a) .c U 0„ Co m' o 0 2.0 a)' io m -� a ° m. ° o o o o •3, rn 3 co, ate) rn w. W a) 3 (0 CO n ' m w' ai ,, E u g - = -, a, a`) `a) E E c =: 3 a �' `t 1- H 7,, ami Cr >_ .c a, a o n 5 E m wEi m e m 0, a) c, m' m m 0 -o a q a) a) m a) - �' o O 2, 2; 2 ca •o co •a 1 E O, O .0 O 0 a) co a) a) o, a c z a D 5 5, 5 cn w 0 O a, a c.) ¢ a; 0 cn U 0, 0 0 ¢, w < •w 0 CO CO c.� N, 2,, a, 0 CO U) 0, a N M 1n CO CO 0) 0 (N N CO CO CO N- 00 0) O ,— N CO V 1f) (0 1) CO a) E ,— N M V 10 (0 r CO 0) 0 . . N N N N N N CV N N N CO CO CO CO CO CO M CO CO CO O N I N N ••--1:16 7 O 16 ON R N R ON U a) V C _ C C/� O CO o p rn p m p CT) rn N `J _ CA O u) N cola c M v E �I N• y Zr) a) O E c `q O ` aCD U�y a E a Q Q W 4 0 C7 Q I • • Well History File APPENDIX Infoiniation of detailed nature that is not particularly germane to the Well Permitting Process • but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of infor nation. Cook Inlet Energy, LLC Otter 1-12 S12-T14N-R10W S.M. May 19, 2012 – June 19, 2012 Ralph Winkelman: Senior Logging Geologist Steve Pike: Senior Logging Geologist Tollef Winslow Senior Logging Geologist Joshua Michaud Logging Geologist Otter 1-12 1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW .................................................................................................... 2 1.1. EQUIPMENT SUMMARY .............................................................................................................. 2 1.2. PERSONNEL SUMMARY ............................................................................................................. 3 2. GENERAL WELL DETAILS ............................................................................................................................ 4 2.1. OBJECTIVES ................................................................................................................................ 4 2.2. WELL RESUME ............................................................................................................................ 4 2.3. HOLE DATA ................................................................................................................................. 4 3. GEOLOGICAL DATA ..................................................................................................................................... 5 3.1. LITHOLOGY REVIEW ................................................................................................................... 5 3.2. SAMPLING PROGRAM AND DISTRIBUTION ........................................................................... 14 4. DRILLING DATA .......................................................................................................................................... 15 4.1. DAILYACTIVITY SUMMARY ...................................................................................................... 15 4.2. SURVEY RECORD ..................................................................................................................... 18 4.3. BIT RECORD .............................................................................................................................. 21 4.4. DRILLING PROGRESS CHART ................................................................................................. 22 5. DAILY REPORTS .......................................................................................................................................... 22 Enclosures: 1”/100’ Formation Log (MD) 2”/100’ Formation Log (MD) 5”/100’ Formation Log (MD) 1”/100’ Combo Log (MD) 2”/100’ Combo Log (MD) 5”/100’ Combo Log (MD) 1”/100’ Drilling Dynamics (MD) 2”/100’ Drilling Dynamics (MD) 5”/100’ Drilling Dynamics (MD) Final Well Data on CD/ROM Otter 1-12 2 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Parameter Equipment Type And Position Total Downtime Comments Ditch Gas QGM Trap Mounted In Possum Belly; FID Total Hydrocarbon Analyzer And Chromatograph Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On Drum Shaft Wits from Quadco Pump stroke counters Externally Mounted Magnetic Proximity Sensor 0 Wits from Quadco Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Wits from Quadco Drill string torque Hydraulic Pressure Cell 0 Wits from Quadco Top drive rotary (RPM) Externally Mounted Magnetic Proximity Sensor 0 Wits from Quadco Standpipe Pressure Hydraulic Pressure Cell 0 Wits from Quadco Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From Flow Paddle 0 Wits from Quadco Pit volumes Ball and probe sensor 0 Wits from Quadco Driller’s work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Wits from Quadco Company man’s work station HP COMPAQ 0 Mud Engineer’s work station HP COMPAQ 0 Living quarter’s work station HP COMPAQ 0 Pit’s work station Explosion Proof Touch Screen Otter 1-12 3 1.2. PERSONNEL SUMMARY Unit Number: ML030 Otter 1-12 Mudloggers Years Experience Days at well Sample Catchers/ Trainees Days at well Technician Days at well Ralph Winkelman 21 12 Dickie Hudgins 34 Howard Lamp 1 Steve Pike 10 32 Steve Franzen 34 Tollef Winslow 4 17 Josh Michaud 2 Otter 1-12 4 2. GENERAL WELL DETAILS 2.1. OBJECTIVES The objective of Otter 1-12 is to successfully drill and log a vertical exploration hole for gas potential. 2.2. WELL RESUME Operator: Cook Inlet Energy, LLC Well Name: Otter #1-12 Field: Exploratory County: Kenai Peninsula Borough State: Alaska Company Representatives: Mike Murray John Nicholson Don Jones Location: 2081' FNL; 1805' FEL; S12-T14N-R10W SM AK Classification: Exploration API #: 50-283-20163-00-00 Permit #: 221028 Activity Code: (WBS #s) Rig Name / Type: Miller #34 / Land / Single Elevation: Ground, RKB 160' MSL; 174.8' RKB Primary Targets: / Target Depths: Sterling, Beluga, Tyonek Sands Spud Date: May 19, 2012 Total Depth 5686’ Total Depth Formation: Lower Beluga Total Depth Date: 5686’ MWD Company: / Tools Run: N/A Directional Drilling: N/A Drilling Fluids Company: Halliburton Baroid Logging Companies: Halliburton Wireline 2.3. HOLE DATA Otter 1-12 Hole Section Maximum Depth T.D. Formation Mud Weight (ppg) Deviation (oinc) Casing Shoe Depth F.I.T. MD SSTVD MD SSTVD EMW 8.5” 2106’ 1931.2’ Sterling 9.5 2.0 7” 2096’ 1921.2’ 15.1 6.125” 5686’ 5511.2’ Beluga 9.9 10.5 4.5” Otter 1-12 5 3. GEOLOGICAL DATA 3.1. LITHOLOGY REVIEW Conglomerate/ Conglomeratic Sand (157' -200) = salt and pepper appearance from abundant multicolored liths, dominantly clear to translucent to frosted white black, greenish gray, light red, yellow and moderate reddish brown; medium upper to 8mm pebble fragments, dominantly very coarse upper to lower; angular to subangular; poor to fair sorting; unconsolidated; trace lithic coal. Conglomeratic Sand/ Conglomerate (200' - 240') = medium gray overall with salt and pepper appearance from abundant multicolored liths; medium upper to 10mm pebble fragments, dominantly very coarse angular to subangular; poor to fair sorting; unconsolidated; trace woody carbonaceous material. Tuffaceous Claystone (240' - 280') = medium light gray to medium bluish gray; very soft; very sticky; shapeless, amorphous cuttings; silty to clayey texture; greasy luster; hydrophilic; very soluble and expansive; poor cohesiveness; fair to good adhesiveness; non calcareous. Tuffaceous Claystone (280' - 350') = medium to medium light gray; shapeless, globular cuttings; silty to clayey to slightly gritty texture; very soft and sticky; tacky to slimy; greasy luster; hydrophilic; non calcareous. Conglomeratic Sand (360' - 415') = white, light to dark gray and black, with some pale green, and light bluish gray hues; predominantly quartz grain sand with abundant dark colored lithic fragments throughout; very dense and poorly friable; fair to poorly sorted; very well rounded with some very angular; moderate to very high sphericity; predominantly thin bedded with thicker beds of tuffaceous claystone. Tuffaceous Claystone (420' - 475') = medium to dark gray with some light gray and light bluish gray; very clumpy to clotted with some slightly pasty; mostly brittle to somewhat crumbly; predominantly irregular fracture; amorphous cuttings habit; mostly dull luster; predominantly clayey with some slightly gritty to granular in places; trace of wood and carbonaceous material with very thin beds of coals. Tuffaceous Claystone (480' - 525') = medium to light medium gray with some light bluish gray; pasty to mushy; mostly crumbly to somewhat brittle; irregular fracture; amorphous cuttings habit; predominantly clayey with some gritty; trace of wood and dark colored carbonaceous material; some very thin coal lenses. Tuffaceous Claystone (550' - 590') = dark gray to medium dark gray; mushy to pasty; very brittle to slightly crumbly; irregular fracture; amorphous cuttings habit; mostly clayey with some slightly gritty to granular; abundant dark colored carbonaceous material throughout sample. Conglomeratic Sand (595' - 655') = white to milky white, with some light gray to dark gray and black, pale green, very pale blue, and pale red purple hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments throughout; very hard throughout, not very friable; upper fine grain to very coarse; poorly sorted throughout; very well rounded to subrounded with some subangular to very angular; high sphericity; Sand/ Sandstone (660' - 730') = mostly clear to translucent, with some white, milky white, very pale green, very pale blue, dark gray, and black hues; mostly quartz grain sand with abundant dark colored lithic fragments; mostly hard with some slightly friable; lower fine grain sand to very coarse grain; poorly sorted throughout; very well rounded to subrounded with some very angular to subangular; moderate to high sphericity; trace dark colored wood and other carbonaceous material with carbonaceous shale. Otter 1-12 6 Coal/ Carbonaceous Material (750'-760) = black with dark brown secondary hues; firm to moderately hard; planar fracture dominant; platy to flaky; earthy luster; gritty to silty texture; thin coal laminae alternating with medium gray microthin silt beds; common dark brown woody organic material interbedded; present as a thin bed in dominantly claystone formation; no visible outgassing observed; trace sand; translucent quartz. Sand (825' - 890') = translucent to clear with some milky white, white, very pale green, very pale blue, dark gray and black hues; predominantly quartz grain sand matrix with abundant dark colored lithic fragments; lower fine grain sand to upper coarse grain; fair to poorly sorted throughout; very well rounded to subrounded with some very well angular to subangular; moderate to high sphericity; trace of carbonaceous material including wood. Tuffaceous Claystone (895' - 935') = dark gray to medium dark gray with some medium gray; mostly pasty to mushy; predominantly brittle to crumbly; irregular fracture, amorphous cuttings habit; very clayey with some silty to gritty; trace of carbonaceous material and woody fiber. Tuffaceous Siltstone (940' - 980') = medium gray to light gray; pasty to mushy; crumbly to crunchy; irregular fracture; amorphous cuttings habit; predominantly earthy to very dull; mostly very silty texture with some very clayey to slightly gritty in places. Tuffaceous Claystone (985' - 1025') = dark gray to medium gray; mushy to pasty; mostly brittle to crumbly; irregular fracture; amorphous cuttings habit; predominantly earthy to somewhat dull; mostly clayey with some silty to slightly gritty in places; trace carbonaceous material. Tuffaceous Claystone (1050' - 1085') = medium gray to dark gray; lumpy to somewhat mushy; very brittle to crumbly; irregular fracture; amorphous cuttings habit; predominantly dull to earthy; mostly clayey with some silty to slightly gritty. Tuffaceous Siltstone (1090' - 1125') = dark gray to medium gray; clotted to pasty; crumbly; irregular fracture; amorphous cuttings habit; mostly dull to earthy; predominantly silty throughout, with some clayey to gritty; trace carbonaceous material. Tuffaceous Claystone (1130' - 1165') = medium gray to medium dark gray; pasty to mushy; crumbly to brittle; mostly irregular fracture; amorphous cuttings habit; predominantly earthy to dull; very clayey grading to silty and gritty texture. Tuffaceous Claystone/ Tuffaceous Siltstone (1165' - 1230') = medium to medium light gray with light brownish gray secondary hues; soft; sticky; mushy to pasty; shapeless, globular cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; soluble; poor cohesiveness; poor to fair adhesiveness; trace lithic coal pieces; black; firm; flaky. Sand (1230' - 1280') = medium to medium dark gray with a weak salt and pepper appearance, individual grains dominantly dark gray to black, dark greenish gray, light gray, white and translucent; fine lower to pebble fragments (3mm), dominantly medium lower to coarse lower; angular to subangular; poorly sorted; unconsolidated; non calcareous. Tuffaceous Claystone (1280' - 1340') = medium to medium light gray; mushy; shapeless, amorphous cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; moderate to very soluble; moderately expansive; poor cohesiveness; fair to good adhesiveness; non calcareous trace dark brown to black carbonaceous material/ coal free floating in clay. Otter 1-12 7 Sand (1340' - 1380') = medium to medium light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, medium to dark gray to greenish gray, black and dusky red; fine lower to trace very coarse upper, dominantly medium upper to lower; angular to subangular; poor to fair sorting; unconsolidated; non calcareous; trace dark brown to black carbonaceous material/ coal. Tuffaceous Claystone (1380' - 1440') = medium to medium light gray; very soft to rarely firm and fragile; massive to shapeless, amorphous cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; moderately expansive and very soluble; poor cohesiveness; fair to good adhesiveness; trace firmer fragments have dark brown to black microthin carbonaceous laminations and inclusions; non calcareous. Tuffaceous Claystone/ Tuffaceous Siltstone (1440' - 1490') = medium to medium light gray; soft; sticky; mushy to pasty shapeless, globular cuttings; silty to clayey texture; dull to greasy luster; hydrophilic; soluble; poor cohesiveness; poor to fair adhesiveness; trace thin coal beds; black; flaky; firm; poorly developed; abundant pieces suspended in dominantly clay formation. Sand (1490' - 1550') = medium to medium light gray overall, individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray to black, medium greenish gray and translucent pink; fine lower to trace very fine grain sand; moderately sorted; very well rounded to subrounded with some very angular; high sphericity; mostly uncemented sand interbedded with some non calcareous cemented sandstone which is very friable. Tuffaceous Claystone (1560' - 1600') = dark gray to medium gray; mushy to pasty; mostly crumbly to brittle; irregular fracture; amorphous cuttings habit; predominantly earthy to somewhat dull; mostly clayey with some silty to slightly gritty; trace carbonaceous material. Sand/ Sandstone (1605' - 1670') = clear to translucent with some light gray, white, milky white, light pale blue, light pale green, dark gray, and black hues; predominantly quartz grain sand matrix, with abundant dark colored lithic fragments throughout sample; upper very fine to upper fine grain sand; moderate to well sorted; mostly well rounded with some subrounded with some subangular; moderate to high sphericity; abundant carbonaceous material throughout. Coal (1675' - 1700') = black to brownish black; slightly dense to brittle; blocky to slightly planar fracture; massive to platy cuttings habit; waxy to vitreous luster; smooth texture; massive with some slightly fissile in places. Sand/ Sandstone (1730' - 1795') = mostly translucent to clear with some white, milky white, light gray, dark gray, black, and light pale green hues; mainly quartz grain sand matrix with abundant dark colored lithic fragments throughout; mostly unconsolidated sand with some very friable siliceous cemented sandstones; upper very fine to upper fine grain sand; moderate to well sorted; very well rounded with some subrounded and subangular; moderate to high sphericity. Tuffaceous Claystone (1800' - 1840') = dark gray to medium gray with some light gray; predominantly pasty to mushy; mostly brittle to crumbly; irregular fracture; amorphous cuttings habit; predominantly dull to earthy; very clayey grading to silty with some gritty in places. Tuffaceous Claystone/ Tuffaceous Siltstone (1840' - 1910') = medium to medium light gray with light gray secondary hue soft to occasionally slightly firm and fragile; massive to shapeless, amorphous cuttings; silty to clayey texture; dull luster; hydrophilic; very soluble; moderately expansive; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace to common thin coal beds throughout; black; flaky; firm; planar facture dominant; no outgassing. Otter 1-12 8 Coal (1910' - 1960') = black with dark brown secondary hues; firm to hard and brittle; massive to platy and flaky cuttings; planar fracture dominant; earthy to polished luster; smooth to slightly gritty texture; present as lithic fragments and as thin to occasionally thick beds; trace visible outgassing bubbles from harder, well developed pieces; subbituminous in part. Tuffaceous Claystone (1960' - 2010') = medium to medium light gray; soft to rarely firm; shapeless, amorphous cuttings; silty to clayey texture; dull luster; mushy to tacky; moderate to very soluble; poor cohesiveness; fair to good adhesiveness; abundant coals throughout; non calcareous. Coal (2010' - 2060') = black with dark brown secondary hues; firm to hard and brittle; massive to platy and flaky cuttings; planar fracture dominant; earthy to polished luster; smooth to slightly gritty texture; present as very thin bed >1' to approx 10' throughout interval; trace visible outgassing bubbles from harder pieces; subbituminous. Sand (2060' - 2106') = medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, light gray, light greenish gray and dark gray; fine lower to coarse lower, dominantly medium; angular to subangular; poor to fair sorting; unconsolidated; non calcareous. Tuffaceous claystone (2135' - 2170) = medium gray to dark gray with some light gray; pasty to mushy; mostly brittle to crumbly; irregular fracture; amorphous cuttings habit; dull to slightly earthy; predominantly clayey with some slightly silty to gritty. Sand (2175' - 2250') = predominantly translucent to clear with some milky white, white, light gray, and grayish black and black hues; mostly quartz grain sand with dark colored lithic fragments; lower fine to lower medium sand; moderate to well sorted; very well rounded to subrounded with some subangular to very angular; moderate to high sphericity; thinner beds of quartz sand interbedded with thin lenses of siliceous cemented fine grained sandstones, and tuffaceous siltstone and tuffaceous claystones. Tuffaceous siltstone (2255' - 2290') = light gray to light bluish gray; pasty to mushy; mostly brittle; irregular fracture; amorphous cuttings habit; predominantly dull luster; very silty texture, with some clayey to gritty in places. Sand/sandstone (2315' - 2385') = clear to translucent, with some light gray and very pale blue hues; predominantly quartz grain sand matrix with dark colored lithic fragments throughout; upper very fine to lower coarse grain sand; poorly sorted; very well rounded to subrounded with some subangular to very angular; high to moderate sphericity; mostly loose uncemented sand with some friable siliceous cemented very fine grained sandstone. Tuffaceous claystone / tuffaceous siltstone (2385' - 2470') = medium gray to medium dark gray with pale blue sub hues; soft; cohesive, pliable and hydrofiss; stiff consistency; stiff to elastic tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; clayey to silty to gritty texture; massive structure; sand, upper fine to lower fine, sup prismoidal to sub discoidal sphericity, sub angular to sub rounded, moderately to moderately well sorted, unconsolidated, texturally immature, compostionally immature, quartz sand and chert; coal / carbonaceous shale, black or black with reddish brown streaks; no hcl reaction. Tuffaceous siltstone / tuffaceous clay (2470' - 2530') = medium gray to medium dark gray with light olive gray sub hues; soft; poorly indurated; cohesive and pliable; stiff to slimy consistency; stiff to elastic tenacity; earthy fracture; massive cutting habit; earthy to dull luster; silty to clayey to gritty texture; no discernable structure; olive gray tuff; subbituminous coal; no hcl reaction. Otter 1-12 9 Tuffaceous siltstone / tuffaceous claystone (2530' - 2620') = medium dark gray to medium gray with light olive gray sub tones; soft; poorly indurated; cohesive, pliable and plastic; stiff consistency; stiff to elastic tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; silty to clayey texture; laminae to thin structure with lignite laminations, possible massive structure; lignite, black to grayish black, friable, splintery or conchoidal fracture, elongated, tabular or platy cuttings habit, greasy luster, mottled texture, thin structure, no hcl reaction. Siltstone (2650' - 2690') = dark gray to grayish black with some brownish black; very firm to stiff; mostly dense with some slightly brittle; planar to somewhat blocky fracture; massive to platy cuttings habit; waxy luster; smooth to silty texture with some slightly gritty in places. Tuffaceous claystone (2695' - 2730') = light gray to medium gray; mushy to pasty; mostly crumbly to very brittle; irregular fracture; amorphous cuttings habit; mostly dull to somewhat earthy; predominantly clayey with some silty to gritty. Siltstone (2735' - 2780') = grayish black, dark gray with some brownish gray; very firm to stiff; mostly dense to very slightly brittle; blocky to planar fracture; platy with some massive cuttings habit; resinous to waxy luster; predominantly silty texture with some clayey to gritty in places. Carbonaceous silt / lignite / bone coal (2780' - 2830') = grayish black to black to dark gray to medium dark gray with medium light gray; friable to firm friable; splintery fracture; elongated cuttings habit; greasy to resinous luster; mottled texture; laminae to thin beds; carbonaceous material varies in maturity from flakey reddish brown laminations of carbonaceous silt or bone coal to lignite; light gray tuffaceous silt beds between carbonaceous material; no hcl reaction. Tuffaceous siltstone / tuffaceous clay (2830' - 2920') = medium dark gray to medium gray; soft; poor to moderately poor induration; stiff tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; clayey to silty texture; massive structure; carbonaceous siltstone / claystone and lignitic coal entrained in clay, black to grayish black, friable to firm friable, splinter fracture, elongated cuttings habit, greatly to resinous luster, mottled texture, laminae structure; no hcl reaction. Tuffaceous siltstone / tuffaceous clay (2920' - 2960') = medium gray to medium light gray; soft; poorly to moderately poorly indurated; stiff tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; clayey to silty texture; massive structure; lignite/carbonaceous material; no hcl. Sand (2975' - 3030') = predominantly translucent to clear, with some white, light gray, pale blue green, very pale green, and dark yellowish orange hues; mostly quartz grain sand matrix with dark colored lithic fragments throughout the sample; lower very fine to upper fine grain sand; well sorted; very well rounded to subrounded with some very subangular to well angular; moderate to high sphericity. Siltstone (3060' - 3100') = dark gray, brownish gray, grayish black; slightly firm to stiff; mostly brittle with some slightly dense; planar fracture with some irregular; platy to massive; greasy to waxy luster; mostly silty with some clayey to increasingly gritty. Tuffaceous siltstone / tuffaceous claystone (3105' - 3175') = medium gray to medium light gray with slight light olive gray sub hue; soft; poorly to moderately poorly indurated; cohesive and plastic; stiff consistency; stiff to plastic tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; silty to clayey texture; no discernable structure; lignite/carbonaceous silt, black or light brown, firm friable, splintery fracture; elongated cuttings habit, greasy luster, mottled texture, laminae structure; no hcl reaction. Otter 1-12 10 Tuffaceous siltstone (3180' - 3220') = medium gray to medium light gray; soft; poorly indurated; cohesive and plastic; stiff consistency; stiff tenacity; earth fracture; massive cuttings habit; dull luster; silty texture; lignite/carbonaceous siltstone, firm friable, splintery fracture, elongated cuttings. Carbonaceous shale (3225' - 3265') = black, brownish black, grayish black; slightly stiff to somewhat firm; brittle; mostly irregular to slightly planar fracture; platy to flaky cuttings habit; resinous to slightly vitreous luster; mostly smooth texture; very fissile in places. Siltstone (3270' - 3305') = medium gray to dark gray with some blackish gray; predominantly firm to somewhat stiff; mostly brittle; irregular to slightly planar blocky fracture; massive to platy cuttings habit; very silty with some clayey to gritty. Siltstone (3305' - 3370') = medium gray medium dark gray; easily friable; poorly indurated; planar fracture; sub tabular cuttings habit; earthy luster; silty texture; laminae to thin structure; interbedded with carbonaceous material; lignite / carbonaceous siltstone, black to grayish black, splintery fracture, elongated cuttings habit, dull luster, mottled texture, laminae structure; no hcl reaction. Tuffaceous claystone (3370' - 3430') = light gray to medium light gray; soft; cohesive; soft; stiff consistency; stiff tenacity; earthy fracture; massive cuttings habit; earthy luster; clayey texture; laminae to massive structure; interbedded carbonaceous material/lignite; no hcl reaction. Sand (3430' - 3475') = medium gray to medium dark gray; upper fine to lower medium, occasional lower fine; subprismoidal to subdiscoidal; subangular to subrounded; moderately well to well sorted; unconsolidated sand; texturally immature; immature compositionally; translucent and transparent quartz sand, impacted. Tuffaceous siltstone (3495' - 3530') = light gray to medium gray with some dark gray; mostly mushy to pasty; very crumbly; irregular fracture; amorphous cuttings habit; very dull luster; predominantly silty with some clayey to gritty. Tuffaceous claystone (3535' - 3570') = light gray to medium gray; mushy to pasty; mostly brittle to very crumbly; irregular fracture; amorphous cuttings habit; mostly dull to somewhat earthy; predominantly clayey with some silty to gritty. Siltstone (3595' - 3635') = brownish black, black, dark gray; stiff to firm; mostly dense to slightly brittle; planar fracture to slightly irregular; mostly massive with some slightly platy; waxy to greasy luster; silty with some clayey to slightly gritty in places. Tuffaceous siltstone (3640' - 3675') = medium gray to light gray with some dark gray; pasty to mushy; irregular fracture; amorphous cuttings habit; predominantly earthy to dull luster; very silty grading to clayey and gritty in places. Tuffaceous claystone (3680' - 3715') = light gray to medium gray; pasty to mushy; mostly crumbly to very brittle; irregular fracture; amorphous cuttings habit; mostly dull to somewhat earthy; predominantly clayey with some silty to gritty. Coal (3720' - 3755') = brownish black, to black with some grayish black; firm to moderately stiff; slightly dense to somewhat brittle; planar fracture; massive to platy cutting habit; resinous to slightly greasy luster; mostly smooth texture; laminae to thin structure; no hcl reaction. Otter 1-12 11 Coal / lignite (3755' - 3820') = black to grayish black with some reddish brown; firm friable to friable; moderately indurated; splintery and planar fracture; elongated cuttings habit; resinous to greasy luster; smooth to mottled texture; laminae to thin structure; tuffaceous clay, soft, poorly indurated, cohesive, stiff consistency, stiff tenacity, earthy fracture, massive cuttings habit, earthy to dull luster, clayey texture, massive structure. Sand (3820' - 3850') = light olive gray to olive gray with medium light gray sub hue; lower course to lower medium; spherical to sub discoidal; angular to sub angular; moderately to moderately well sorted; unconsolidated; texturally immature; compositionally sub mature; quartz sand. Tuffaceous clay (3850' - 3910') = medium gray to medium dark gray; soft; poorly indurated; cohesive; stiff consistency; stiff tenacity; earthy fracture; massive cuttings habit; earthy luster; clayey texture; massive structure; lignite, black to brownish black, brittle tenacity, splintery fracture, elongated cuttings habit, greasy luster, smooth texture, no hcl reaction. Tuffaceous clay (3910 - 3970') = medium dark gray to medium gray; soft; poorly to moderately poorly indurated; cohesive; stiff consistency; stiff tenacity; earthy fracture; massive cuttings habit; earthy luster; clayey texture; massive structure; no hcl. Tuffaceous clay (3970' - 4030') = medium gray to medium dark gray; soft; moderately poorly to poorly indurated; cohesive and expansive; stiff to slimy consistency; stiff tenacity; earthy fracture; massive cuttings habit; earthy to dull luster; clayey to smooth texture; massive structure; lignite / coal, black to grayish black to reddish brown, brittle tenacity; splintery fracture; elongated or sub nodular cuttings habit, greasy luster, smooth. Tuffaceous siltstone (4035' - 4065') = medium gray to light gray with some brownish gray; mushy to pasty; mostly brittle; irregular fracture; amorphous cuttings habit; earthy to dull luster; very silty with some clayey to gritty. Coal (4070' - 4110') = black, to brownish black, with some reddish black; very firm to stiff; tough to dense; mostly blocky to slightly planar fracture; platy to massive; waxy to slightly greasy luster; mostly smooth texture; visible off gassing was observed. Sand (4115' - 4165') = mostly clear to translucent, with some white, light gray, and moderate yellowish brown, and dark yellowish orange hues; mostly quartz grain sand matrix with dark colored lithic fragments lower very fine to upper fine grain; well sorted throughout; very well rounded to subrounded with some angular to subangular; moderate to high sphericity. Coal (4195' - 4235') = reddish black, black, with some brownish black; mostly very firm to stiff; tough to dense; slightly blocky to somewhat planar fracture; platy to massive; waxy to slightly greasy luster; mostly smooth texture; visible off gassing was observed. Sand/sandstone (4240' - 4270') = clear to translucent, with some white, light gray with some light brown, and dark gray hues; predominantly loose quartz grain sand with some very fine grained calcareous cemented sandstone; upper very fine to upper fine with some lower medium; fair to well sorted. Tuffaceous clay (4270' - 4360') = medium gray to medium light gray with light olive gray sub hue; soft; poorly to moderately poorly indurated; stiff consistency; cohesive; stiff to elastic tenacity; earthy fracture; massive cuttings habit; dull to earthy luster; clayey to smooth to gritty texture; massive structure; lignite coal, friable, splintery fracture, elongated to nodular cuttings habit, dull luster, matte texture, laminae to thin structure; sand, upper fine to upper very fine, spherical to sub discoidal; sub angular to sub round, moderately well to well sorted, unconsolidated, texturally immature, compositionally immature, quartz; no hcl reaction. Otter 1-12 12 Tuffaceous clay / tuffaceous silt (4360' - 4450') = medium gray to medium dark gray with light olive gray sub hue; soft; poorly to moderately poorly indurated; cohesive and hydrophylic; stiff to slimy consistency; stiff to elastic tenacity; earthy to open fracture; massive cuttings habit; dull to earthy luster; clayey to silty texture; massive to thick structure; lignite / carbonaceous silt, black to grayish black, friable to easily friable, splintery fracture, elongated and nodular cuttings habit, dull to waxy luster, mottled texture; laminae to thin structure; no hcl reaction. Tuffaceous clay / tuffaceous silt (4450' - 4505') = medium dark gray to medium gray; poorly indurated; cohesive; stiff consistency, stiff tenacity; soft; earthy fracture; massive cuttings habit; earthy luster; clayey to silty texture; massive to thick structure; no hcl. Coal / carbonaceous silt (4505' - 4515') = black to grayish black; friable to easily friable; splintery fracture; elongated and nodular cuttings habit; dull to waxy luster; mottled texture; laminae to thin structure; Tuffaceous silt / tuffaceous clay (4515' - 4570') = medium dark gray to medium gray; poorly indurated; cohesive; stiff consistency; stiff tenacity; earthy fracture; massive cuttings habit; soft; earthy luster; clayey to silty texture; massive to thick structure; no hcl. Coal (4580' - 4620') = brownish black, to reddish black, with grayish black and black; very firm to stiff; tough to dense; mostly blocky to slightly planar fracture; massive to platy; waxy to slightly greasy luster; mostly smooth texture; visible off gassing was observed. Tuffaceous siltstone (4625' - 4655') = brownish gray to light gray with some medium gray; pasty to mushy; mostly brittle; irregular fracture; amorphous cuttings habit; earthy to dull luster; very silty with some clayey to gritty. Sand/sandstone (4680' – 4740') = mostly translucent to clear, with some white, light gray to medium gray, and light brown hues; mostly loose uncemented quartz sand with very thin lenses of sandstone; upper fine to upper very fine grained; spherical to sub discoidal; angular to sub angular; well to moderately well sorted; texturally immature; compositionally immature; quartz sand with pitting; tuffaceous clay and silt present. Coal / lignite (4745' - 4785') = black to grayish black with reddish brown streaks; firm friable to friable; moderately indurated; splintery fracture; nodular cuttings habit; resinous to greasy luster; matte texture; laminae to thin structure; some outgassing observed. Sand (4790' - 4855') = medium gray to medium dark gray; soft; poorly to moderately indurated; cohesive; stiff consistency; stiff tenacity; earthy fracture; massive cuttings habit; earthy luster; clayey to silty to smooth texture; massive structure; sand, translucent and transparent, lower fine to upper very fine grained, spherical to subdiscoidal, angular to sub rounded, well to moderately well sorted, unconsolidated, texturally immature, compositional sub mature; no hcl. Sand (4860' - 4890') = predominantly clear to translucent, with some white and light gray; mostly loose quartz sand; upper very fine to upper fine; moderate to well sorted; high sphericity. Coal (4895' - 4930') = black, grayish black, and brownish black; super hard; very dense throughout; blocky to irregular fracture; massive to platy cuttings habit; resinous to waxy; mostly smooth texture; very hard, nonfriable; visible off gassing observed. Tuffaceous clay / silt (4930' - 4965') = medium gray to medium light gray; cohesive, stiff tenacity, earthy fracture, massive cuttings habit, earthy luster, clayey/silty texture, thin to massive bedding; bituminous coal. Otter 1-12 13 Sand (4970' - 5020') = medium gray to medium dark gray; upper fine to lower fine with occasional medium and very fine; sub prismoidal to sub discoidal; angular to sub angular; well to moderately well sorted; unconsolidated; texturally immature; compositionally immature; quartz, translucent and transparent; chert; tuffaceous siltstone; no fluorescence. Coal (5026'-5065') = grayish black to black and occ brownish black; dense to crumbly tenacity; blocky to irregular fracture with platy to massive cuttings habit; resinous to waxy luster and predominately smooth texture; hard to moderately hard; observed visible off gassing. Tuffaceous siltstone (5070' - 5100') = brownish gray to medium gray with some light gray; mushy to pasty; brittle; irregular fracture; amorphous cuttings habit; earthy to dull luster; very silty with some clayey to gritty. Sand (5105'-5145') = light gray to medium gray; upper fine to lower fine with occasional lower medium; well to very well sorted; rounded to subrounded; moderate to high sphericity; texturally immature; unconsolidated; compositionally immature; transparent and translucent; quartz; no sample fluorescence. Tuffaceous siltstone (5155' - 5190') = brownish gray to light gray with some medium gray; pasty to mushy; mostly brittle; irregular fracture; amorphous cuttings habit; dull to earthy luster; silt with some gritty to clayey texture throughout. Sand/sandstone (5215' - 5260') = clear to translucent, with some white, light gray, dark gray, pale blue, and medium bluish gray hues; predominantly loose quartz sand with very thin lenses of very fine grain to fine grain calcareous cemented sandstone; upper very fine to upper fine, with some lower medium Tuffaceous Clay/ Silt (5280' - 5310') = medium light gray to medium gray; mushy and cohesive; brittle to crumbly and malleable tenacity; resinous luster; massive cuttings habit; resinous luster; silty to clayey texture; massive structure; trace amounts of tuff found through samples. Sand/ Sandstone (5320' - 5350) = transparent to translucent; dark gray to light gray; white; predominately unconsolidated fine to medium grained quartz sand; occasional lenses of sandstone; upper fine to lower medium; well to fair sorting; subrounded to rounded; moderate sphericity; texturally immature; compositionally immature. Coal (5390' - 5420') = grayish black to brownish black; black; moderately hard to firm friable; dense to brittle tenacity; splintery to irregular facture; massive to wedgelike cuttings habit; resinous to waxy luster; smooth to silty texture; massive structure; visible degassing observed. Sand (5430' - 5470') = white; dark gray; transparent to translucent; lower fine to upper very fine grain size; well to moderate sorting subrounded to rounded with moderate sphericity; unconsolidated quartz dominated; compositionally immature; texturally immature; no reaction to hcl Tuffaceous Claystone/ Tuffaceous Siltstone (5470' - 5530') = medium to medium light gray with trace light brownish gray secondary hues; soft to fragile; irregular to finely ground, splintery shaped cuttings; silty to clayey texture dull to earthy luster; moderately soluble and expansive; poor adhesiveness; poor to fair cohesiveness; slight to moderately calcareous; trace to common thin interbedded coals; trace light gray to grayish white ashy tuff. Sand (5530' - 5590') = medium light gray overall with individual grains dominantly clear to translucent quartz and volcanic glass, medium to dark gray and dark greenish gray; very fine lower to medium lower, dominantly fine grain; angular to subangular; fair to good sorting; friable to unconsolidated; poor to fair estimated porosity and permeability; trace to common thin interbedded coals. Otter 1-12 14 Coal (5590' - 5650') = black; brittle; splintery to planar fracture, trace birdeye and conchoidal fracture; dull to earthy luster; smooth to slightly gritty texture; poorly developed; subbituminous; commonly present as thin to occasionally massive beds; no outgassing observed. Sand (5650' - 5680') = medium to medium light gray overall with individual liths dominantly clear to translucent quartz and volcanic glass, medium to dark gray, light to medium greenish gray and white; very fine upper to coarse upper, dominantly fine upper to medium lower; angular to subangular; poorly sorted; unconsolidated; non calcareous; abundant coal. 3.2. SAMPLING PROGRAM AND DISTRIBUTION Otter 1-12 Set Type and Purpose Interval Frequency Distribution A Washed and Dried Reference Samples 160’ – 5680’ 30’ Intervals Attn: Howard Oakland AOGCC 333 W. 7th Ave., Suite 100 Anchorage, Alaska 99501 B Washed and Dried Reference Samples 160’ – 5680’ 30’ Intervals Attn: Greg Kirkland 601 West 5th Ave, Ste 310 Anchorage, Alaska 99501 C Washed and Dried Reference Samples 160’ – 5680’ 30’ Intervals Attn: Greg Kirkland 601 West 5th Ave, Ste 310 Anchorage, Alaska 99501 D Wet Reference Samples 160’ – 5680’ 30’ Intervals Attn: Greg Kirkland 601 West 5th Ave, Ste 310 Anchorage, Alaska 99501 Otter 1-12 15 4. DRILLING DATA 4.1. DAILY ACTIVITY SUMMARY 5/15/2012: Ralph Winkelman, Steve Pike, and Howard Lamp arrive to start rig up logging unit #030. Rig continues to rig up 5/16/2012: Continue rig up unit 030. 5/17/2012: Continue rig up. Build 300 bbls mud. 5/18/2012: Rig continues to get ready to drill. Pick up BHA to 150’. 5/19/2012: RIH to bottom, spud well at 0930. Drill ahead to 287' MD, Problems with containing cuttings. POOH to conductor. 5/20/2012: Finish offsite cuttings berm. Drill ahead from 287' MD to 532' MD, and take survey. 5/21/2012: Drill ahead from 533' MD to 805' MD. Pull back to conductor, and work on rig maintenance and pump room ventilation. TIH and wash down to bottom. Wiper gas 244 units. Drill ahead from 805' MD to 1042' MD. 5/22/2012: Drill ahead from 1043' MD to 1723' MD. 5/23/2012: Drill ahead to initial casing depth of 2021' MD. However, samples revealed that the hole depth was in a coal seam. Drilled ahead to 2106' MD, for T.D. for surface casing. P.O.O.H for wiper trip to the top of the HWDP. 5/24/2012: Continue to P.O.O.H for wiper trip to the top of the HWDP. Service rig. Wash and ream too bottom. Drop carbide bomb, CBU. Prepare rig to POOH. Start POOH. 5/25/2012: POOH, lay down BHA. Rig up to run 7" casing. RIH with 7" casing. 5/26/2012: Continue to RIH with 7" casing, to 2096'. CBU and wait for BJ to get part shipped. Pump cement and spacer. Displace cement with water and pretreated mud. 5/27/2012: Rig down cementing equipment. Start to clean pits. Take down diverter. Nipple up BOPs. 5/28/2012: Finish nippling up BOPs. Test BOPs, lines and valves. 5/29/2012: Finish testing BOPs, lines and valves. Pick up BHA and RIH. Tag cement at 1940'. Test casing to 3,000 PSI. Drill out cement and float shoe. 5/30/2012: Drill 20' of new formation for FIT. Displaced old cement contaminated mud, with new 9.5 ppg mud. Conduct FIT at 2096' to EMW of 15.1 ppg. Drill ahead. 5/31/2012: Drill ahead to 2641' MD. Drop survey checkshot at 2584' MD, 4 degrees. POOH to change bit. 6/01/2012: Pick up new BHA with bit #3. TIH to bottom, depth correction too 2610'. Drill ahead. 6/02/2012: Drill ahead from 2610' MD to 2770' MD. Drop survey @ 2770', 5.5 degrees. Drill ahead. Otter 1-12 16 6/03/2012: Drill ahead from 3033' MD to 3310' MD. 6/04/2012: Drill ahead to 3494' MD, CBU. Survey @ 3460' MD, 7.75 degrees. BROOH to conduct weekly BOP test. 6/05/2012: Continue to BROOH, lay down BHA. 6/06/2012: Finish testing BOPs. Pick up new BHA, with Bit #3RR and TIH. Drill ahead from 3495' MD. 6/07/2012: Drill ahead from3568' MD. Take survey @3970', 8.25 degrees. Drill ahead. 6/08/2012: POOH into casing to complete repairs on pump #1. Repaired pump, and TIH. 6/09/2012: Continue TIH to bottom. Drill ahead from 4665' MD to 4506' MD. Take survey @ 4460', 8.25 degrees. 6/10/2012: BROOH to 4000' MD, for wiper trip. TIH back to bottom, wiper gas 75u. Drill ahead from 4685' MD. 6/11/2012: Drill ahead from 4685' MD to 5194' MD. Take survey @ 4960' MD, 8.5 degrees. Show #1 at 4970' MD to 5020' MD, with a max gas of 129u. CBU, and BROOH for wiper trip. 6/12/2012: Wash and ream to bottom. BROOH to 4190' MD. Wash and ream back to bottom. Drill ahead from 5195' MD to 5252' MD. CBU, condition mud, and BROOH. 6/13/2012: Continue to BROOH. Stuck drill pipe. Work drill pipe and circulate. 6/14/2012: Continue to BROOH to shoe. POOH. 6/15/2012: Run e-logs 6/16/2012: Attempt to get logging tools to bottom 6/17/2012: Cont RIH F 1780' to 2106'. CBU, fill pipe. Cont RIH, CBU @ 2400', 2700', 3300', 3600'. Tag @ 3723'. Ream 3728' - 3880'. Cont RIH to 4901', tight @ 4718', 4748'. POOH from 4901' to 4121' while wok on pump #2. RIH from 4121' to 4568' while cont work on pump #2. Cont RIH 4568' to 4900', TAG. Cont ream to btm 4900' to 5138' @ midnight. 6/18/2012: Cont RIH 5138' to 5250'. CBU @ 5250' and clean suction screens. Drill 5252' to 5348'. POH 5348' to 5150' while work on pump #2. RIH 5150' to 5348'. Drill 5348' to 5561', CBU and drop SVY. CBU and drill 5561' to 5600' at midnight. 6/19/2012: Drill from 5600' to 5686', CBU, POOH from 5686' to 4040'.No rotating, pump out. Work on pumps. Change packing on #2, welding on #1. Cont POOH 4040' to 2108'. Cont work on pump #1. Change out saver sub and torq into top drive. Service carrier and grease swivel. RIH from 2108' to 5048'. Kelly up and fill pipe. 6/20/2012: Wash/ Ream 5058' to 5686', trounbleshoot pump #1. CBU. POOH 5686' to 5108. RIH 5108' to 5686', CBU, pump sweep. POOH w/ trip tank to 5000'. RIH from 5000' to 5686'. CBU, pump sweep. POOH on trip tank from 5686' to 3120' at midnight. Otter 1-12 17 6/21/2012: Cont POOH from 3068' to 968'. PJSM at crew change. Cont laydown drill pipe and BHA. PJSM w/ Halliburton. Rig up E-line and load souces. RIH. Tag @ 5448'. Log out of hole. Rig down Halliburton. Service rig, grease swivel. Rig down bails, elevators and pull wear ring. Rig up to test BOP. AOGCC waived test. Cont to rig to test BOP. Test BOP at report time. 6/22/2012: Complete BOP test. Laydown test equipment. Rig up to run 4 1/2" casing.Pick up and make up shoe, shoe track and float. PJSM. RIH from 80' to 4760'. PJSM. Cont RIH to 5640'. Lay down casing tools. Rig up bails and elevators. Install circ head. Circ and condition mud while work pipe at report time. 6/23/2012: Wait on cement truck repairs. Cont to CBU. Pump cement. Rig down cementers. Rig down mud logging equipment. Ot t e r 1 - 1 2 18 4. 2 . SU R V E Y R E C O R D Me a s u r e d De p t h In c l i n a t i o n Az i m u t h T V D Ve r t i c a l Se c t i o n Re c t a n g u l a r Co o r d i n a t e (+ ) N / S ( - ) Re c t a n g u l a r Co o r d i n a t e (+ ) E / W ( - ) Cl o s u r e Di s t a n c e Closure Azimuth DLS ( f t ) ( d e g ) ( d e g ) ( f t ) ( f t ) ( f t ) ( f t ) ( f t ) ( d e g ) ( deg/100 ft ) Si n g l e s h o t 50 0 2 10 1 1 2 14 9 1 2 21 0 5 2 25 8 4 4 27 7 0 5 . 5 30 7 0 6 . 5 34 6 0 7 . 7 5 39 7 0 8 . 2 5 44 6 0 8 . 2 5 49 6 0 8 . 5 54 7 5 1 0 . 5 Ot t e r 1 - 1 2 19 MU D R E C O R D Co n t r a c t o r : B a r o i d D r i l l i n g F l u i d s M u d T y p e s : K C l / P o l y m e r 1 5 8 ’ – 5 6 8 6 ’ DA T E M D / T V D M W V I S P V Y P G E L S F L F C S O L O I L / H 2 O S D M B T p H A l k C l - C a + 5/ 1 7 / 2 0 1 2 9 6 / 9 6 9 . 0 4 1 1 0 1 4 8 / 1 0 / 1 2 5 . 0 2 / 0 2 . 4 0 . 0 / 9 6 . 5 - - 8 . 0 0 . 6 0 1 2 0 0 0 2 4 0 5/ 1 8 / 2 0 1 2 1 6 2 / 1 6 2 9 . 0 5 9 1 2 3 0 1 7 / 2 2 / 2 5 5 . 0 1 / 0 2 . 4 0 . 0 / 9 6 . 5 - - 9 . 0 0 . 1 0 1 2 0 0 0 1 6 0 5/ 1 9 / 2 0 1 2 2 8 7 / 2 8 7 9 . 1 5 8 1 4 4 0 1 0 / 2 0 / 2 9 7 . 0 1/ 0 2 . 8 0 . 0 / 9 6 . 5 0 . 7 5 - 8 . 4 0 . 1 0 1 0 0 0 0 2 0 0 5/ 2 0 / 2 0 1 2 4 5 5 / 4 5 5 9 . 1 5 8 1 0 3 3 1 1 / 2 4 / 2 8 7 . 0 1 / 0 3 . 9 0 . 0 / 9 5 . 5 1 . 0 0 1 0 . 0 9 . 0 0 . 1 0 1 0 0 0 0 2 4 0 5/ 2 1 / 2 0 1 2 1 0 1 2 / 1 0 1 2 9 . 4 4 5 1 0 2 8 1 7 / 2 3 / 2 9 6 . 5 1/ 0 4 . 0 0 . 0 / 9 5 . 0 1 . 0 0 10 . 0 8 . 4 0 . 7 0 1 0 5 0 0 2 4 0 5/ 2 2 / 2 0 1 2 1 6 7 1 / 1 6 7 1 9 . 3 5 5 0 1 2 3 7 1 7 / 2 2 / 2 6 8 . 0 2/ 0 6 . 0 0 . 0 / 9 3 . 0 1 . 0 0 10 . 0 8 . 3 0 . 6 0 1 2 0 0 0 2 4 0 5/ 2 3 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 8 0 1 3 2 6 1 2 / 1 6 / 1 8 8 . 0 2 / 0 6 . 9 0 . 0 / 9 1 . 0 1 . 0 0 1 0 . 0 8 . 0 0 . 7 0 1 3 0 0 0 2 4 0 5/ 2 4 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 7 0 1 4 2 4 1 0 / 1 4 / 1 6 8 . 0 1/ 0 7 . 0 0 . 0 / 9 2 . 0 1 . 0 0 10 . 0 8 . 2 0 . 6 0 1 1 0 0 0 2 4 0 5/ 2 5 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 4 8 1 4 2 3 9 / 1 3 / 1 6 8 . 0 1/ 0 7 . 0 0 . 0 / 9 2 . 0 1 . 0 0 10 . 0 8 . 2 0 . 6 0 1 1 0 0 0 2 4 0 5/ 2 6 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 4 8 1 4 2 3 9 / 1 3 / 1 6 8 . 0 1/ 0 7 . 0 0 . 0 / 9 2 . 0 1 . 0 0 10 . 0 8 . 3 0 . 6 0 1 1 0 0 0 2 4 0 5/ 2 7 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 4 8 1 5 2 1 1 0 / 1 2 / 1 5 8 . 0 1/ 0 7 . 0 0 . 0 / 9 6 . 0 1 . 0 0 10 . 0 8 . 1 0 . 6 0 1 1 0 0 0 2 4 0 5/ 2 8 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 4 8 1 7 1 8 7 / 9 / 1 2 4 . 5 1 / 0 4 . 0 0 . 0 / 9 5 . 0 9 . 1 1 . 0 0 1 1 0 0 0 1 2 0 5/ 2 9 / 2 0 1 2 2 1 0 6 / 2 1 0 6 9 . 5 4 8 1 6 1 9 7 / 9 / 1 1 5 . 0 1 / 0 4 . 0 0 . 0 / 9 5 . 0 9 . 0 1 . 0 0 1 1 0 0 0 1 2 0 5/ 3 0 / 2 0 1 2 2 2 3 0 / 2 2 3 0 9 . 5 5 1 1 6 2 0 6 / 8 / 1 1 5 . 0 1/ 0 4 . 3 0 . 0 / 9 5 . 0 0 . 5 0 5. 0 9 . 4 1 . 4 0 1 1 0 0 0 2 0 0 5/ 3 1 / 2 0 1 2 2 6 4 0 / 2 6 4 0 9 . 6 4 4 1 5 2 0 8 / 9 / 1 1 5 . 0 1/ 0 5 . 0 0 . 0 / 9 4 . 0 0 . 5 0 7. 5 7 . 5 1 . 6 0 1 1 0 0 0 2 0 0 6/ 0 1 / 2 0 1 2 2 6 4 0 / 2 6 4 0 9 . 6 4 6 1 4 2 2 8 / 9 / 1 0 4 . 8 1/ 0 5 . 0 0 . 0 / 9 4 . 0 0 . 5 0 7. 5 7 . 3 2 . 0 0 1 1 0 0 0 2 0 0 6/ 0 2 / 2 0 1 2 3 0 0 0 / 3 0 0 0 9 . 6 4 6 1 6 1 6 5 / 7 / 8 3 . 8 1 / 0 6 . 0 0 . 0 / 9 3 . 0 0 . 8 0 1 0 . 0 9 . 5 1 . 8 0 1 2 0 0 0 2 4 0 6/ 0 3 / 2 0 1 2 3 3 0 0 / 3 3 0 0 9 . 6 4 9 1 9 1 9 5 / 7 / 9 4 . 5 1 / 0 4 . 9 0 . 0 / 9 4 . 0 0 . 8 0 1 0 . 0 9 . 5 1 . 8 0 1 3 0 0 0 2 4 0 6/ 0 4 / 2 0 1 2 3 4 3 0 / 3 4 3 0 9 . 6 4 8 1 9 1 7 5 / 8 / 1 1 5 . 0 1/ 0 6 . 0 0 . 0 / 9 3 . 0 1 . 0 0 10 . 0 9 . 5 1 . 8 0 1 1 0 0 0 1 6 0 6/ 0 5 / 2 0 1 2 3 4 9 4 / 3 4 9 4 9 . 6 4 8 1 8 2 0 5 / 7 / 9 5 . 0 1 / 0 5 . 0 0 . 0 / 9 4 . 0 1 . 0 0 1 0 . 0 9 . 5 1 . 8 0 1 1 0 0 0 1 6 0 6/ 0 6 / 2 0 1 2 3 4 9 4 / 3 4 9 4 9 . 6 5 1 2 0 2 0 5 / 8 / 1 2 5 . 0 1/ 0 6 . 1 0 . 0 / 9 3 . 0 1 . 0 0 10 . 0 9 . 5 1 . 8 0 1 0 0 0 0 1 6 0 6/ 0 7 / 2 0 1 2 4 1 4 5 / 4 1 4 5 9 . 7 5 2 2 3 2 0 6 / 1 6 / 2 3 4 . 2 1/ 0 6 . 9 0 . 0 / 9 2 . 0 1 . 0 0 10 . 0 9 . 2 2 . 0 0 1 3 0 0 0 1 6 0 6/ 8 / 2 0 1 2 4 1 5 5 / 4 1 5 5 9 . 6 4 8 1 8 1 3 3 / 9 / 1 4 5 . 0 1/ 0 6 . 0 0 . 0 / 9 3 . 0 1 . 0 0 10 . 0 9 . 5 1 . 8 0 1 1 0 0 0 1 6 0 6/ 9 / 2 0 1 2 4 6 6 5 / 4 6 6 5 9 . 8 5 8 2 4 2 2 6 / 1 9 / 2 8 4 . 8 1/ 0 8 . 0 0 . 0 / 9 1 . 0 1 . 0 0 12 . 5 8 . 7 1 . 8 0 1 2 0 0 0 1 6 0 Ot t e r 1 - 1 2 20 DA T E M D / T V D M W V I S P V Y P G E L S F L F C S O L O I L / H 2 O S D M B T p H A l k C l - C a + 6/ 1 0 / 2 0 1 2 4 8 9 1 / 4 8 9 1 9 . 7 5 5 2 2 1 8 5 / 1 8 / 2 6 5 . 0 1/ 0 9 . 0 0 . 0 / 9 0 . 0 1 . 0 0 12 . 5 8 . 5 1 . 8 0 1 2 0 0 0 1 6 0 6/ 1 1 / 2 0 1 2 5 1 9 5 / 5 1 9 5 9 . 8 5 8 2 4 2 2 6 / 2 5 / 3 6 5 . 0 1/ 0 9 . 0 0 . 0 / 9 0 . 0 1 . 0 0 12 . 0 8 . 6 2 . 0 0 1 2 0 0 0 2 0 0 6/ 1 2 / 2 0 1 2 5 2 5 2 / 5 2 5 2 9 . 8 4 8 1 8 1 3 6 / 1 6 / 2 9 5 . 0 1/ 0 9 . 0 0 . 0 / 9 0 . 0 1 . 0 0 12 . 5 9 . 4 2 . 0 0 1 2 0 0 0 2 0 0 6/ 1 3 / 2 0 1 2 5 2 5 2 / 5 2 5 2 9 . 9 5 1 1 9 1 3 4 / 1 4 / 1 9 5 . 0 1/ 0 1 0 . 1 0 . 0 / 8 9 . 0 1 . 0 0 10 . 0 9 . 3 2 . 0 0 1 1 0 0 0 1 6 0 6/ 1 4 / 2 0 1 2 5 2 5 2 / 5 2 5 2 1 0 . 0 4 5 1 5 1 3 4 / 1 2 / 2 3 5 . 0 1/ 0 1 1 . 0 0 . 0 / 8 8 . 0 1 . 0 0 12 . 5 9 . 3 2 . 0 0 1 2 5 0 0 1 6 0 6/ 1 5 / 2 0 1 2 5 2 5 2 / 5 2 5 2 9 . 9 4 5 1 6 1 4 4 / 1 8 / 2 2 5 . 0 1/ 0 1 0 . 0 0 . 0 / 8 9 . 0 1 . 0 1 2 . 5 8 . 9 2 . 0 0 1 2 0 0 0 2 0 0 6/ 1 6 / 2 0 1 2 5 2 5 2 / 5 2 5 2 1 0 . 1 5 1 1 8 1 6 5 / 1 8 / 2 6 5 . 0 1/ 0 1 1 . 0 0 . 0 / 8 8 . 0 1 . 0 1 2 . 5 9 . 0 2 . 0 0 1 2 0 0 0 2 0 0 6/ 1 7 / 2 0 1 2 5 2 5 2 / 5 2 5 2 9 . 9 5 2 1 8 1 3 5 / 1 6 / 2 2 5 . 0 1/ 0 9 . 0 0 . 0 / 9 0 . 0 0 . 7 0 12 . 5 9 . 0 2 . 0 0 1 2 0 0 0 4 0 0 6/ 1 8 / 2 0 1 2 5 5 9 9 / 5 5 9 9 9 . 9 5 3 2 4 1 9 4 / 1 6 / 2 5 4 . 8 1/ 0 9 . 1 0 . 0 / 9 0 . 0 0 . 5 0 12 . 5 8 . 4 2 . 0 0 1 0 0 0 0 2 4 0 6/ 1 9 / 2 0 1 2 5 6 8 6 / 5 6 8 6 9 . 8 5 3 2 2 1 8 4 / 1 4 / 2 0 4 . 6 1/ 0 8 . 0 0 . 0 / 9 1 . 0 0 . 5 0 12 . 5 9 . 5 2 . 0 0 1 2 5 0 0 2 6 0 6/ 2 0 / 2 0 1 2 5 6 8 6 / 5 6 8 6 9 . 9 4 5 2 0 1 3 3 / 8 / 1 5 5 . 0 1/ 0 7 . 0 0 . 0 / 9 2 . 0 0 . 5 0 12 . 5 9 . 2 2 . 1 0 1 2 0 0 0 2 8 0 6/ 2 1 / 2 0 1 2 5 6 8 6 / 5 6 8 6 9 . 9 4 7 1 9 1 4 3 / 9 / 1 7 5 . 0 1/ 0 7 . 0 0 . 0 / 9 2 . 0 0 . 5 0 12 . 5 9 . 2 2 . 0 0 1 2 0 0 0 2 4 0 6/ 2 2 / 2 0 1 2 5 6 8 6 / 5 6 8 6 20 Ot t e r 1 - 1 2 21 4. 3 . BI T R E C O R D BI T NO . SI Z E “ TY P E S / N JE T S / TF A IN O U T F T H R S AV E RO P WO B Lo – A v g – H i RP M PP Lo – A v g – H i CONDITION 1 8 . 5 ” N O V T C 1 1 P B 1 4 8 8 9 5 3x 1 6 0. 5 8 8 9 15 8 2 1 0 6 1 9 4 8 4 1 . 7 5 4 6 . 6 5 . 5 – 1 0 – 2 0 1 0 8 31 1 – 5 3 6 – 89 5 3-2-WT-A-E-1-CT-TD 2 6 1 / 8 ” N O V R T 2 G N N 2 0 4 3 3x 1 4 0. 4 5 0 9 21 0 7 2 6 4 1 5 3 4 1 5 . 7 5 3 3 . 9 4. 9 – 1 0 . 6 – 16 . 7 94 . 4 70 2 – 9 3 6 - 13 5 9 2-2-N-E 3 6 1 / 8 ” N O V D S 6 9 2 0 8 0 2 7 5X 1 0 0. 3 8 3 5 26 1 0 3 4 9 4 8 8 4 4 5 . 2 5 1 9 . 5 1 – 5 . 9 – 2 1 9 8 33 0 – 6 6 9 - 12 6 9 Rerun bit 3R R 6 1 / 8 ” N O V D S 6 9 2 0 8 0 2 7 5x 1 0 0. 3 8 5 34 9 5 5 2 5 2 1 7 5 7 4 5 . 9 5 3 8 . 2 1 – 6 . 1 – 1 8 8 3 34 5 – 1 6 5 8 - 21 2 6 1-2-N-E 3R R 6 1 / 8 ” N O V D S 6 9 2 0 8 0 2 7 5x 1 0 0. 3 8 5 52 5 2 5 6 8 6 4 3 4 1 6 . 0 2 7 . 1 3 – 8 – 2 3 8 5 76 1 – 1 6 3 2 - 19 9 8 2-3-IN GAUGE Ot t e r 1 - 1 2 22 4. 4 . DR I L L I N G P R O G R E S S C H A R T DA Y S VE R S U S D E P T H 0' 10 0 0 ' 20 0 0 ' 30 0 0 ' 40 0 0 ' 50 0 0 ' 60 0 0 ' 70 0 0 ' 5 / 1 5 / 2 0 1 2 5 / 1 6 / 2 0 1 2 5 / 1 7 / 2 0 1 2 5 / 1 8 / 2 0 1 2 5 / 1 9 / 2 0 1 2 5 / 2 0 / 2 0 1 2 5 / 2 1 / 2 0 1 2 5 / 2 2 / 2 0 1 2 5 / 2 3 / 2 0 1 2 5 / 2 4 / 2 0 1 2 5 / 2 5 / 2 0 1 2 5 / 2 6 / 2 0 1 2 5 / 2 7 / 2 0 1 2 5 / 2 8 / 2 0 1 2 5 / 2 9 / 2 0 1 2 5 / 3 0 / 2 0 1 2 5 / 3 1 / 2 0 1 2 6 / 1 / 2 0 1 2 6 / 2 / 2 0 1 2 6 / 3 / 2 0 1 2 6 / 4 / 2 0 1 2 6 / 5 / 2 0 1 2 6 / 6 / 2 0 1 2 6 / 7 / 2 0 1 2 6 / 8 / 2 0 1 2 6 / 9 / 2 0 1 2 6 / 1 0 / 2 0 1 2 6 / 1 1 / 2 0 1 2 6 / 1 2 / 2 0 1 2 6 / 1 3 / 2 0 1 2 6 / 1 4 / 2 0 1 2 6 / 1 5 / 2 0 1 2 6/16/2012 6/17/2012 6/18/2012 6/19/2012 6/20/2012 6/21/2012 6/22/2012 6/23/2012 DA T E D E P T H ( F T ) 8.5" hole 6.125" hole O T T E R 1 - 1 2 5. D A I L Y R E P O R T S Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE May 19, 2012 DEPTH 287' PRESENT OPERATION Prepare bermed area for drill cuttings TIME 0500 YESTERDAY 158' 24 HOUR FOOTAGE 129' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 423.5 @ 161' 11.6 @ 234' 70.6 18.76489 FT/HR SURFACE TORQUE 2534 @ 228' 654 @ 159' 1087.6 1197.00000 AMPS WEIGHT ON BIT 6 @ 280' 1 @ 168' 3.2 6.60000 KLBS ROTARY RPM 61 @ 235' 1 @ 226' 44.9 60.00000 RPM PUMP PRESSURE 414 @ 277' 5 @ 226' 152.9 244.00000 PSI DRILLING FLUIDS REPORT DEPTH 287' MW 9.20 VIS 67 PV 14 YP 40 FL Gels 10/20/29 CL- 12,000 FC 1/0 SOL 4.3 SD 1.25 OIL 1/0 MBT pH 8.3 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 13 @ 231' 0 @ 192' 1.4 TRIP GAS NA CUTTING GAS 0 @ 287' 0 @ 287' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 2694 @ 231' 49 @ 195' 277.7 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 287' 0 @ 287' 0.0 AVG 1.4 PROPANE (C-3) 0 @ 287' 0 @ 287' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 287' 0 @ 287' 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 287' 0 @ 287' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Conglomerate, congloneritic sand, tuffaceous clay PRESENT LITHOLOGY Tuffaceous clay DAILY ACTIVITY SUMMARY RIH to bottom, spud well at 0930. Drill ahead to 287' MD, Problems with containing cuttings. POOH to conductor CANRIG PERSONNEL ON BOARD 4 DAILY COST $3,130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE May 20, 2012 DEPTH 532' PRESENT OPERATION Run Survey TIME 0500 YESTERDAY 288' 24 HOUR FOOTAGE 244' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5 NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 821.2 @ 411' 4.7 @ 302' 88.4 87.62490 FT/HR SURFACE TORQUE 3033 @ 339' 908 @ 381' 2043.9 1982.00000 AMPS WEIGHT ON BIT 11 @ 336' 1 @ 443' 7.7 9.70000 KLBS ROTARY RPM 123 @ 335' 63 @ 381' 90.5 95.00000 RPM PUMP PRESSURE 650 @ 345' 98 @ 381' 334.5 561.00000 PSI DRILLING FLUIDS REPORT DEPTH 455' MW 9.10 VIS 49 PV 10 YP 33 FL Gels 19/26/32 CL- 10,000 FC 1/0 SOL 3.9 SD 1.00 OIL 1.0/95.5 MBT pH 9.0 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 34 @ 489' 1 @ 291' 6.3 TRIP GAS NA CUTTING GAS 0 @ 532' 0 @ 532' 0.0 WIPER GAS 2u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 6241 @ 489' 218 @ 291' 1177.7 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 532' 0 @ 532' 0.0 AVG 6.3 PROPANE (C-3) 0 @ 532' 0 @ 532' 0.0 CURRENT 3.0 BUTANE (C-4) 0 @ 532' 0 @ 532' 0.0 CURRENT BACKGROUND/AVG 3.0 PENTANE (C-5) 0 @ 532' 0 @ 532' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, conglomeritic sand, coal PRESENT LITHOLOGY Tuffaceous claystone DAILY ACTIVITY SUMMARY Finish offsite cuttings berm. Drill ahead from 287' MD to 532' MD, and take survey. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3,130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE May 21, 2012 DEPTH 1042' PRESENT OPERATION Run Survey TIME 0500 YESTERDAY 533' 24 HOUR FOOTAGE 509 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 696.8 @ 620' 7.0 @ 887' 72.2 51.51808 FT/HR SURFACE TORQUE 2445 @ 567' 1360 @ 533' 2110.2 2211.00000 AMPS WEIGHT ON BIT 10 @ 1036' 0 @ 863' 7.1 10.40000 KLBS ROTARY RPM 126 @ 574' 76 @ 540' 113.1 117.00000 RPM PUMP PRESSURE 759 @ 926' 223 @ 566' 529.9 618.00000 PSI DRILLING FLUIDS REPORT DEPTH 1012' MW 9.10 VIS 48 PV 11 YP 31 FL 6.5 Gels 17/23/26 CL- 11000 FC 1/0 SOL 4.0 SD 1.00 OIL 0.0/95.0 MBT pH 10.0 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 90 @ 1036' 2 @ 533' 17.0 TRIP GAS NA CUTTING GAS 0 @ 1042' 0 @ 1042' 0.0 WIPER GAS 244u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 13984 @ 933' 377 @ 533' 2487.5 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 1042' 0 @ 1042' 0.0 AVG 17 PROPANE (C-3) 0 @ 1042' 0 @ 1042' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 1042' 0 @ 1042' 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 1042' 0 @ 1042' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, siltstone, and sand PRESENT LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, siltstone DAILY ACTIVITY SUMMARY Drill ahead from 533' MD to 805' MD. Pull back to conductor, and work on rig maintenance. TIH and wash down to bottom. Wiper gas 244 units. Drill ahead from 805' MD to 1042' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE May 23, 2012 DEPTH 1723' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 1043' 24 HOUR FOOTAGE 680' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 347.0 @ 1162' 0.9 @ 1723' 53.4 0.92220 FT/HR SURFACE TORQUE 3139 @ 1683' 1748 @ 1189' 2439.8 2025.00000 AMPS WEIGHT ON BIT 18 @ 1680' 1 @ 1043' 11.2 9.90000 KLBS ROTARY RPM 127 @ 1565' 108 @ 1464' 116.9 119.00000 RPM PUMP PRESSURE 873 @ 1704' 430 @ 1081' 607.4 764.00000 PSI DRILLING FLUIDS REPORT DEPTH 1671' MW 9.50 VIS 50 PV 13 YP 37 FL 8.0 Gels 17/22/26 CL- 12000 FC 2/0 SOL 6.0 SD 1.00 OIL 0.0/93.0 MBT 10.0 pH 8.3 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 149 @ 1691' 2 @ 1046' 38.4 TRIP GAS NA CUTTING GAS 0 @ 1723' 0 @ 1723' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 28996 @ 1691' 478 @ 1046' 7072.6 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 1723' 0 @ 1723' 0.0 AVG 38.4 PROPANE (C-3) 0 @ 1723' 0 @ 1723' 0.0 CURRENT 17 BUTANE (C-4) 0 @ 1723' 0 @ 1723' 0.0 CURRENT BACKGROUND/AVG 17/38 PENTANE (C-5) 0 @ 1723' 0 @ 1723' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, sandstone and sand PRESENT LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, sandstone, sand, and coal DAILY ACTIVITY SUMMARY Drill ahead from 1043' MD to 1723' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE May 23, 2012 DEPTH 2106' PRESENT OPERATION P.O.O.H. to the top of the HWDP TIME 0500 YESTERDAY 1724' 24 HOUR FOOTAGE 382' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 174.3 @ 2094' 3.3 @ 2092' 42.4 65.30000 FT/HR SURFACE TORQUE 3444 @ 1989' 1848 @ 1762' 2808.6 2926.00000 AMPS WEIGHT ON BIT 20 @ 1865' 7 @ 1762' 15.5 14.00000 KLBS ROTARY RPM 125 @ 1961' 109 @ 1839' 118.5 125.00000 RPM PUMP PRESSURE 895 @ 2038' 368 @ 1913' 684.2 525.00000 PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 13 YP 26 FL 8.0 Gels 12/16/18 CL- 13000 FC 2/0 SOL 6.9 SD 1.00 OIL 0.0/92.0 MBT 10.0 pH 8.0 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 286 @ 2088' 10 @ 1732' 55.9 TRIP GAS NA CUTTING GAS 0 @ 2106' 0 @ 2106' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 56892 @ 2088' 1903 @ 1732' 11030.8 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 2106' 0 @ 2106' 0.0 AVG 56 PROPANE (C-3) 0 @ 2106' 0 @ 2106' 0.0 CURRENT 20 BUTANE (C-4) 0 @ 2106' 0 @ 2106' 0.0 CURRENT BACKGROUND/AVG 20/56 PENTANE (C-5) 0 @ 2106' 0 @ 2106' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, and sand PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill ahead to initial casing depth of 2021' MD. However, samples revealed that the hole depth was in a coal seam. Drilled ahead to 2106' MD, for T.D. for surface casing. P.O.O.H for wiper trip to the top of the HWDP. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 24, 2012 DEPTH 2106' PRESENT OPERATION POOH TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0' CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 14 YP 24 FL 8.0 Gels 10/14/16 CL- 11000 FC 1/0 SOL 7.0 SD 1.00 OIL 0.0/92.0 MBT 10.0 pH 8.2 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 173u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 2106' 0 @ 2106' 0.0 AVG NA PROPANE (C-3) 0 @ 2106' 0 @ 2106' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 2106' 0 @ 2106' 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 2106' 0 @ 2106' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, and sand PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to P.O.O.H for wiper trip to the top of the HWDP. Service rig. Wash and ream too bottom. Drop carbide bomb, CBU. Prepare rig to POOH. Start POOH. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 25, 2012 DEPTH 2106' PRESENT OPERATION RIH with 7" casing TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' 2106' 1948' 41.75 casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 14 YP 23 FL 8.0 Gels 9/13/16 CL- 11000 FC 1/0 SOL 7.0 SD 1.00 OIL 0.0/92.0 MBT 10.0 pH 8.2 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 0 @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY POOH, lay down BHA. Rig up to run 7" casing. RIH with 7" casing. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 26, 2012 DEPTH 2106' PRESENT OPERATION Wait on cement TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 8.5" NOV TC11P B148895 3x16 158' 2106' 1948' 41.75 casing point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 14 YP 23 FL 8.0 Gels 9/13/16 CL- 11000 FC 1/0 SOL 7.0 SD 1.00 OIL 0.0/92.0 MBT 10.0 pH 8.3 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 98u CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 0 @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to RIH with 7" casing, to 2096'. CBU and wait for BJ to get part shipped. Pump cement and spacer. Displace cement with water and pretreated mud. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 27, 2012 DEPTH 2106' PRESENT OPERATION Nipple up BOPs TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 15 YP 21 FL 8.0 Gels 10/12/15 CL- 11000 FC 1/0 SOL 7.0 SD 1.00 OIL 0.0/96.0 MBT 10.0 pH 8.1 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 0 @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Rig down cementing equipment. Start to clean pits. Take down diverter. Nipple up BOPs. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 28, 2012 DEPTH 2106' PRESENT OPERATION Test choke TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 17 YP 18 FL 4.5 Gels 7/9/12 CL- 11000 FC 1/0 SOL 4.0 SD OIL 0.0/95.0 MBT pH 9.1 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 0 @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Finish nippling up BOPs. Test BOPs, lines and valves. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 29, 2012 DEPTH 2106' PRESENT OPERATION Drill out cement TIME 0500 YESTERDAY 2106' 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2106' MW 9.5 VIS 48 PV 16 YP 19 FL 5.0 Gels 7/9/11 CL- 11000 FC 1/0 SOL 4.0 SD OIL 0.0/95.0 MBT pH 9.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 0 @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Finish testing BOPs, lines and valves. Pick up BHA and RIH. Tag cement at 1940'. Test casing to 3,000 PSI. Drill out cement and float shoe. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones/John Nicholson DATE May 30, 2012 DEPTH 2296' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 2107' 24 HOUR FOOTAGE 189' CASING INFORMATION 7" @2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 6.125" NOV RT2G NN2043 2107' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 75.9 @ 2115' 0.3 @ 2120' 27.5 28.53770 FT/HR SURFACE TORQUE 3231 @ 2125' 1208 @ 2151' 1797.6 1656.00000 AMPS WEIGHT ON BIT 16 @ 2122' 4 @ 2222' 8.1 10.10000 KLBS ROTARY RPM 126 @ 2123' 83 @ 2286' 92.9 84.00000 RPM PUMP PRESSURE 1223 @ 2279' 549 @ 2118' 899.0 730.00000 PSI DRILLING FLUIDS REPORT DEPTH 2230/2230 MW 9.5 VIS 44 PV 14 YP 18 FL 5.0 Gels 7/9/10 CL- 11000 FC 1/0 SOL 4.3 SD 0.50 OIL 0.0/95.0 MBT 5.0 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 33 @ 2207' 1 @ 2271' 6.0 TRIP GAS NA CUTTING GAS 0 @ 2296' 0 @ 2296' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 6356 @ 2207' 191 @ 2163' 1140.8 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 2296' 0 @ 2296' 0.0 AVG 6 PROPANE (C-3) 0 @ 2296' 0 @ 2296' 0.0 CURRENT 5 BUTANE (C-4) 0 @ 2296' 0 @ 2296' 0.0 CURRENT BACKGROUND/AVG 5/6 PENTANE (C-5) 0 @ 2296' 0 @ 2296' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, and sand PRESENT LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, sand, and sandstone DAILY ACTIVITY SUMMARY Drill 20' of new formation for FIT. Displaced old cement contaminated mud, with new 9.5 ppg mud. Conduct FIT at 2096' to EMW of 15.1 ppg. Drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Johnson/John Nicholson DATE May 31, 2012 DEPTH 2641' PRESENT OPERATION POOH TIME 0500 YESTERDAY 2297' 24 HOUR FOOTAGE 344' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 6.125" NOV RT2G NN2043 2107' 2641' 534' 15.75 Bit Change DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 128.8 @ 2449' 3.3 @ 2339' 41.9 19.77620 FT/HR SURFACE TORQUE 2536 @ 2458' 1303 @ 2305' 1981.0 1876.00000 AMPS WEIGHT ON BIT 17 @ 2598' 6 @ 2599' 12.1 11.80000 KLBS ROTARY RPM 105 @ 2433' 83 @ 2387' 95.7 102.00000 RPM PUMP PRESSURE 1376 @ 2407' 647 @ 2302' 961.3 849.00000 PSI DRILLING FLUIDS REPORT DEPTH 2640'/2640' MW 9.6 VIS 44 PV 15 YP 20 FL 5.0 Gels 8/9/11 CL- 11000 FC 1/0 SOL 5.0 SD 0.50 OIL 0.0/94.0 MBT 7.5 pH 7.5 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 39 @ 2395' 0 @ 2567' 11.0 TRIP GAS NA CUTTING GAS 0 @ 2641' 0 @ 2641' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 7600 @ 2395' 75 @ 2329' 1835.5 CONNECTION GAS HIGH 12u ETHANE (C-2) 0 @ 2641' 0 @ 2641' 0.0 AVG 11 PROPANE (C-3) 0 @ 2641' 0 @ 2641' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 2641' 0 @ 2641' 0.0 CURRENT BACKGROUND/AVG 0/12 PENTANE (C-5) 0 @ 2641' 0 @ 2641' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, sand, carbonaceous shale and coal PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill ahead to 2641' MD. Drop survey checkshot at 2584' MD, 4 degrees. POOH to change bit. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/John Nicholson DATE June 1, 2012 DEPTH 2636' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 2641' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" NOV DS69 208027 5x10 2610' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 2640'/2640' MW 9.6 VIS 43 PV 15 YP 21 FL 4.8 Gels 8/9/10 CL- 11000 FC 1/0 SOL 5.0 SD 0.50 OIL 0.0/94.0 MBT 7.5 pH 7.3 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ 0 @ TRIP GAS 133u CUTTING GAS @ 0 @ 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ 2395' 75 @ 2329' 1835.5 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 2641' 0 @ 2641' 0.0 AVG PROPANE (C-3) 0 @ 2641' 0 @ 2641' 0.0 CURRENT 9 BUTANE (C-4) 0 @ 2641' 0 @ 2641' 0.0 CURRENT BACKGROUND/AVG 9 PENTANE (C-5) 0 @ 2641' 0 @ 2641' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, sand, carbonaceous shale and coal PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pick up new BHA with bit #3. TIH to bottom, depth correction too 2610'. Drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE Jun 02, 2012 DEPTH 3032' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 2636' 24 HOUR FOOTAGE 396' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" NOV DS69 208027 5x10 2610' 422' 19.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 89.1 @ 2866' 1.8 @ 2989' 28.2 22.64982 FT/HR SURFACE TORQUE 3313 @ 2774' 72 @ 2953' 2036.8 2078.00000 AMPS WEIGHT ON BIT 16 @ 2990' 1 @ 2956' 5.5 12.40000 KLBS ROTARY RPM 107 @ 2972' 1 @ 2990' 99.2 94.00000 RPM PUMP PRESSURE 749 @ 2900' 330 @ 2990' 527.1 506.00000 PSI DRILLING FLUIDS REPORT DEPTH 3000/3000 MW 9.6 VIS 46 PV 16 YP 16 FL 3.8 Gels 5/7/8 CL- 12000 FC 1/0 SOL 6.0 SD 0.80 OIL 0.0/93.0 MBT 10.0 pH 9.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 86 @ 3021' 2 @ 2900' 10.9 TRIP GAS NA CUTTING GAS 0 @ 3032' 0 @ 3032' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 16049 @ 3021' 390 @ 2830' 2073.3 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 3032' 0 @ 3032' 0.0 AVG 10.9 PROPANE (C-3) 0 @ 3032' 0 @ 3032' 0.0 CURRENT 13 BUTANE (C-4) 0 @ 3032' 0 @ 3032' 0.0 CURRENT BACKGROUND/AVG 13/11 PENTANE (C-5) 0 @ 3032' 0 @ 3032' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Carbonaceous shale, shale, tuffaceous claystone, tuffaceous siltstone, siltstone, and sand PRESENT LITHOLOGY Carbonaceous shale, tuffaceous siltstone, siltstone, and sand DAILY ACTIVITY SUMMARY Drill ahead from 2610' MD to 2770' MD. Drop survey @ 2770', 5.5 degrees. Drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE Jun 03, 2012 DEPTH 3310' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 3033' 24 HOUR FOOTAGE 277' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" NOV DS69 208027 5x10 2510' 800' 34 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 88.9 @ 3202' 2.6 @ 3310' 23.2 2.62989 FT/HR SURFACE TORQUE 2726 @ 3205' 34 @ 3240' 2048.5 1872.00000 AMPS WEIGHT ON BIT 21 @ 3241' 1 @ 3121' 6.8 13.60000 KLBS ROTARY RPM 113 @ 3274' 1 @ 3273' 97.9 103.00000 RPM PUMP PRESSURE 925 @ 3261' 444 @ 3041' 644.2 715.00000 PSI DRILLING FLUIDS REPORT DEPTH 3000/3000 MW 9.6 VIS 49 PV 19 YP 19 FL 4.5 Gels 5/7/9 CL- 13000 FC 1/0 SOL 4.9 SD 0.80 OIL 0.0/94.0 MBT 10.0 pH 9.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 73 @ 3266' 1 @ 3181' 14.2 TRIP GAS NA CUTTING GAS 0 @ 3310' 0 @ 3310' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 13524 @ 3266' 209 @ 3181' 2658.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 3310' 0 @ 3310' 0.0 AVG 14 PROPANE (C-3) 0 @ 3310' 0 @ 3310' 0.0 CURRENT 8 BUTANE (C-4) 0 @ 3310' 0 @ 3310' 0.0 CURRENT BACKGROUND/AVG 8/14 PENTANE (C-5) 0 @ 3310' 0 @ 3310' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, coal, carbonaceous shale, tuffaceous siltstone, siltstone, sand and sandstone PRESENT LITHOLOGY Tuffaceous claystone, carbonaceous shale, tuffaceous siltstone, siltstone, and sand DAILY ACTIVITY SUMMARY Drill ahead from 3033' MD to 3310' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE Jun 04, 2012 DEPTH 3494' PRESENT OPERATION POOH TIME 0500 YESTERDAY 3311' 24 HOUR FOOTAGE 183' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" NOV DS69 208027 5x10 2510' 3494' 984' 45.25 Test BOPs DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 236.1 @ 3440' 1.2 @ 3311' 19.5 20.16773 FT/HR SURFACE TORQUE 2971 @ 3372' 4 @ 3442' 2109.0 2236.00000 AMPS WEIGHT ON BIT 18 @ 3443' 2 @ 3469' 4.4 4.10000 KLBS ROTARY RPM 105 @ 3443' 1 @ 3442' 96.8 101.00000 RPM PUMP PRESSURE 1269 @ 3370' 741 @ 3357' 960.9 880.00000 PSI DRILLING FLUIDS REPORT DEPTH 3430/3430 MW 9.6 VIS 48 PV 19 YP 17 FL 5.0 Gels 5/8/11 CL- 11000 FC 1/0 SOL 6.0 SD 1.00 OIL 0.0/93.0 MBT 10.0 pH 9.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 36 @ 3361' 1 @ 3443' 8.3 TRIP GAS NA CUTTING GAS 0 @ 3494' 0 @ 3494' 0.0 WIPER GAS 555u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 7223 @ 3361' 197 @ 3443' 1585.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 3494' 0 @ 3494' 0.0 AVG 8 PROPANE (C-3) 0 @ 3494' 0 @ 3494' 0.0 CURRENT 15 BUTANE (C-4) 0 @ 3494' 0 @ 3494' 0.0 CURRENT BACKGROUND/AVG 15/8 PENTANE (C-5) 0 @ 3494' 0 @ 3494' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, carbonaceous shale, and sand PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill ahead to 3494' MD, CBU. Survey @ 3460' MD, 7.75 degrees. BROOH to conduct weekly BOP test. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE Jun 05, 2012 DEPTH 3494' PRESENT OPERATION Lay down BHA TIME 0500 YESTERDAY 3494' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" NOV DS69 208027 5x10 2510' 3494' 984' 45.25 Test BOPs DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 3494/3494 MW 9.6 VIS 49 PV 19 YP 20 FL 5.0 Gels 5/7/9 CL- 11000 FC 1/0 SOL 5.0 SD 1.00 OIL 0.0/94.0 MBT 10.0 pH 9.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 1 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1/0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to BROOH, lay down BHA. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray/Don Jones DATE Jun 06, 2012 DEPTH 3567' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 3495' 24 HOUR FOOTAGE 72' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 2510' 1057' 46.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.3 @ 3556' 7.0 @ 3513' 69.6 59.38567 FT/HR SURFACE TORQUE 3561 @ 3517' 1593 @ 3507' 1991.2 1859.00000 AMPS WEIGHT ON BIT 15 @ 3517' 6 @ 3516' 7.7 10.50000 KLBS ROTARY RPM 101 @ 3495' 80 @ 3554' 86.6 86.00000 RPM PUMP PRESSURE 1901 @ 3517' 1196 @ 3513' 1342.9 1339.00000 PSI DRILLING FLUIDS REPORT DEPTH 3494/3494 MW 9.6 VIS 51 PV 20 YP 20 FL 5.0 Gels 5/8/12 CL- 10000 FC 1/0 SOL 6.1 SD 1.00 OIL 0.0/93.0 MBT 10.0 pH 9.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 23 @ 3509' 4 @ 3525' 10.7 TRIP GAS 119u CUTTING GAS 0 @ 3567.00000 0 @ 3567' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 4426 @ 3509' 766 @ 3525' 2014.5 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 3567' 0 @ 3567' 0.0 AVG 11 PROPANE (C-3) 0 @ 3567' 0 @ 3567' 0.0 CURRENT 22 BUTANE (C-4) 0 @ 3567' 0 @ 3567' 0.0 CURRENT BACKGROUND/AVG 22/11 PENTANE (C-5) 0 @ 3567' 0 @ 3567' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, carbonaceous shale, siltstone, and sand PRESENT LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, carbonaceous shale, siltstone, and sand DAILY ACTIVITY SUMMARY Finish testing BOPs. Pick up new BHA, with Bit #3RR and TIH. Drill ahead from 3495' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 07, 2012 DEPTH 4148' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 3568' 24 HOUR FOOTAGE 580' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 2510' 1638' 14.25+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 801.7 @ 4086' 2.4 @ 4146' 64.7 3.70564 FT/HR SURFACE TORQUE 3294 @ 3988' 1388 @ 3846' 2062.7 1994.00000 AMPS WEIGHT ON BIT 18 @ 3671' 1 @ 3998' 7.1 15.00000 KLBS ROTARY RPM 104 @ 3789' 69 @ 3924' 83.4 83.00000 RPM PUMP PRESSURE 2068 @ 3987' 1078 @ 4146' 1589.7 1102.00000 PSI DRILLING FLUIDS REPORT DEPTH 4145/4145 MW 9.7 VIS 52 PV 23 YP 20 FL 4.2 Gels 6/16/23 CL- 13000 FC 1/0 SOL 6.9 SD 1.00 OIL 0.0/92.0 MBT 10.0 pH 9.2 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 202 @ 3735' 2 @ 3900' 25.0 TRIP GAS NA CUTTING GAS 0 @ 4148.' 0 @ 4148' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 38097 @ 3735.' 358 @ 3877' 4385.1 CONNECTION GAS HIGH 12u ETHANE (C-2) 20 @ 3735' 0 @ 3702' 0.3 AVG 25 PROPANE (C-3) 0 @ 4148' 0 @ 4148' 0.0 CURRENT 9 BUTANE (C-4) 0 @ 4148' 0 @ 4148' 0.0 CURRENT BACKGROUND/AVG 9/25 PENTANE (C-5) 0 @ 4148' 0 @ 4148' 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Coal, carbonaceous shale, tuffaceous claystone, tuffaceous siltstone, siltstone, and sand PRESENT LITHOLOGY Coal, carbonaceous shale, tuffaceous claystone, tuffaceous siltstone, siltstone, and sand DAILY ACTIVITY SUMMARY Drill ahead from3568' MD. Take survey @3970', 8.25 degrees. Drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 08, 2012 DEPTH 4156' PRESENT OPERATION TIH TIME 0500 YESTERDAY 4149' 24 HOUR FOOTAGE 7' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 2510' 1646' 60.25+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 36.2 @ 4152' 3.6 @ 4149' 12.4 4.97581 FT/HR SURFACE TORQUE 2020 @ 4151' 1683 @ 4154' 2135.4 1772.00000 AMPS WEIGHT ON BIT 15 @ 4149' 5 @ 4156' 8.1 5.40000 KLBS ROTARY RPM 85 @ 4152' 84 @ 4155' 96.6 85.00000 RPM PUMP PRESSURE 1375 @ 4150' 710 @ 4153' 1079.6 789.00000 PSI DRILLING FLUIDS REPORT DEPTH 4155/4155 MW 9.6 VIS 48 PV 18 YP 13 FL 5.0 Gels 3/9/14 CL- 11000 FC 1/0 SOL 6.0 SD 1.00 OIL 0.0/93.0 MBT 10.0 pH 9.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 4155' 6 @ 4150' 9.0 TRIP GAS 29 CUTTING GAS 0 @ 4156' 0 @ 4156' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 1890 @ 4155' 1153 @ 4150' 1694.9 CONNECTION GAS HIGH NA ETHANE (C-2) 0 @ 4156' 0 @ 4156' 0.0 AVG 9 PROPANE (C-3) 0 @ 4156' 0 @ 4156' 0.0 CURRENT 0 BUTANE (C-4) 0 @ 4156' 0 @ 4156' 0.0 CURRENT BACKGROUND/AVG 0/9 PENTANE (C-5) 0 @ 4156' 0 @ 4156' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY POOH into casing to complete repairs on pump #1. Repaired pump, and TIH. CANRIG PERSONNEL ON BOARD 4 DAILY COST #3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 09, 2012 DEPTH 4684' PRESENT OPERATION Short trip to 4000' TIME 0500 YESTERDAY 4157' 24 HOUR FOOTAGE 527' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1189' 25 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 533.5 @ 4236' 1.2 @ 4684' 64.3 1.22510 FT/HR SURFACE TORQUE 3051 @ 4683' 326 @ 4648' 2131.0 1922.00000 AMPS WEIGHT ON BIT 16 @ 4267' 2 @ 4478' 5.5 8.20000 KLBS ROTARY RPM 85 @ 4178' 5 @ 4648' 82.1 84.00000 RPM PUMP PRESSURE 2126 @ 4267' 345 @ 4648' 1766.5 1060.00000 PSI DRILLING FLUIDS REPORT DEPTH 4665/4665 MW 9.8 VIS 58 PV 24 YP 22 FL 4.8 Gels 6/19/28 CL- 12000 FC 1/0 SOL 8.0 SD 1.00 OIL 0.0/91.0 MBT 12.5 pH 8.7 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 193 @ 4289' 3 @ 4159' 32.8 TRIP GAS 42u CUTTING GAS 0 @ 4684' 0 @ 4684' 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 35958 @ 4289' 713 @ 4159' 6300.7 CONNECTION GAS HIGH NA ETHANE (C-2) 32 @ 4171' 0 @ 4157' 0.8 AVG 33 PROPANE (C-3) 0 @ 4684' 0 @ 4684' 0.0 CURRENT 17 BUTANE (C-4) 0 @ 4684' 0 @ 4684' 0.0 CURRENT BACKGROUND/AVG 17/33 PENTANE (C-5) 0 @ 4684' 0 @ 4684' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Tuffaceous claystone, tuffaceous siltstone, siltstone, sand, and sandstone PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue TIH to bottom. Drill ahead from 4665' MD to 4506' MD. Take survey @ 4460', 8.25 degrees. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 10, 2012 DEPTH 4897' PRESENT OPERATION Drill Ahead TIME 0500 YESTERDAY 4685' 24 HOUR FOOTAGE 212' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1402' 34.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 87.5 @ 4815' 0.6 @ 4698' 41.4 12.05475 FT/HR SURFACE TORQUE 4569 @ 4870' 1672 @ 4702' 2336.7 2570.00000 AMPS WEIGHT ON BIT 17 @ 4809' 0 @ 4865' 5.5 16.50000 KLBS ROTARY RPM 85 @ 4736' 1 @ 4881' 80.3 84.00000 RPM PUMP PRESSURE 1915 @ 4892' 416 @ 4880' 1617.2 1686.00000 PSI DRILLING FLUIDS REPORT DEPTH 4891/4891 MW 9.7 VIS 58 PV 24 YP 22 FL 5.0 Gels 5/8/26 CL- 12000 FC 1/0 SOL 9.0 SD 1.00 OIL 0.0/90.0 MBT 12.5 pH 8.5 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 202 @ 4845' 5 @ 4873' 37.7 TRIP GAS NA CUTTING GAS 0 @ 4897' 0 @ 4897' 0.0 WIPER GAS 75u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 37682 @ 4845' 974 @ 4873' 7214.7 CONNECTION GAS HIGH NA ETHANE (C-2) 25 @ 4743' 0 @ 4786' 2.9 AVG 38 PROPANE (C-3) 0 @ 4897' 0 @ 4897' 0.0 CURRENT 33 BUTANE (C-4) 0 @ 4897' 0 @ 4897' 0.0 CURRENT BACKGROUND/AVG 33/38 PENTANE (C-5) 0 @ 4897' 0 @ 4897' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Coal, tuffaceous claystone, tuffaceous siltstone, siltstone, sand, sandstone PRESENT LITHOLOGY Coal, tuffaceous claystone, tuffaceous siltstone, sand DAILY ACTIVITY SUMMARY BROOH to 4000' MD, for wiper trip. TIH back to bottom, wiper gas 75u. Drill ahead from 4685' MD. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 11, 2012 DEPTH 5194' PRESENT OPERATION BROOH for wiper trip TIME 0500 YESTERDAY 4898' 24 HOUR FOOTAGE 296' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5X10 3495' 1699' 44.25 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 145.1 @ 5029' 0.9 @ 4914' 54.7 84.75065 FT/HR SURFACE TORQUE 4388 @ 5155' 1904 @ 5063' 2727.2 2740.00000 AMPS WEIGHT ON BIT 12 @ 4902' 2 @ 5158' 5.6 4.20000 KLBS ROTARY RPM 87 @ 5141' 82 @ 5155' 84.1 84.00000 RPM PUMP PRESSURE 2048 @ 5155' 1503 @ 5059' 1757.3 1876.00000 PSI DRILLING FLUIDS REPORT DEPTH 5195/5195 MW 9.8 VIS 58 PV 24 YP 22 FL 5.0 Gels 6/25/36 CL- 12000 FC 1/0 SOL 9.0 SD 1.00 OIL 0.0/90.0 MBT 12.0 pH 8.6 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 273 @ 5029' 6 @ 4954' 70.1 TRIP GAS NA CUTTING GAS 0 @ 5194' 0 @ 5194' 0.0 WIPER GAS 745u CHROMATOGRAPHY (ppm) SURVEY 64u METHANE (C-1) 48437 @ 5029' 1272 @ 4954' 12464.1 CONNECTION GAS HIGH 22u ETHANE (C-2) 36 @ 5030' 0 @ 4939' 1.7 AVG 70 PROPANE (C-3) 0 @ 5194' 0 @ 5194' 0.0 CURRENT 67 BUTANE (C-4) 0 @ 5194' 0 @ 5194' 0.0 CURRENT BACKGROUND/AVG 67/70 PENTANE (C-5) 0 @ 5194' 0 @ 5194' 0.0 HYDROCARBON SHOWS No. 1 INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 4970' MD to 5020' MD 80% Sand 20% Tuffaceous siltstone Before 35u During 69u After 75u Maximum 129u 35u 69u 75u 129u SAND (4970' - 5025') = MEDIUM GRAY TO MEDIUM DARK GRAY; UPPER FINE TO LOWER FINE WITH OCCASIONAL MEDIUM AND VERY FINE; SUB PRISMOIDAL TO SUB DISCOIDAL; ANGULAR TO SUB ANGULAR; WELL TO MODERATELY WELL SORTED; UNCONSOLIDATED; TEXTURALLY IMMATURE; COMPOSITIONALLY IMMATURE; QUARTZ, TRANSLUCENT AND TRANSPARENT; CHERT; TUFFACEOUS SILTSTONE; NO FLUORESENCE. LITHOLOGY Tuffaceous siltstone, coal, sand, and sandstone PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Drill ahead from 4685' MD to 5194' MD. Take survey @ 4960' MD, 8.5 degrees. Show #1 at 4970' MD to 5020' MD, with a max gas of 129u. CBU, and BROOH for wiper trip. CANRIG PERSONNEL ON BOARD 5 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 12, 2012 DEPTH 5252' PRESENT OPERATION BROOH TIME 0500 YESTERDAY 5195' 24 HOUR FOOTAGE 57' CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1757' 49+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 288.3 @ 5195' 16.5 @ 5227' 46.0 32.55765 FT/HR SURFACE TORQUE 2702 @ 5195' 2242 @ 5196' 2490.0 2338.00000 AMPS WEIGHT ON BIT 17 @ 5196' 1 @ 5198' 5.4 7.20000 KLBS ROTARY RPM 84 @ 5196' 81 @ 5195' 85.2 83.00000 RPM PUMP PRESSURE 1794 @ 5237' 1057 @ 5195' 1656.5 1727.00000 PSI DRILLING FLUIDS REPORT DEPTH 5252/5252 MW 9.8 VIS 48 PV 18 YP 13 FL 5.0 Gels 6/16/29 CL- 12000 FC 1/0 SOL 9.0 SD 1.00 OIL 0.0/90.0 MBT 12.5 pH 9.4 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 189 @ 5205' 22 @ 5247' 72.5 TRIP GAS NA CUTTING GAS 0 @ 5252' 0 @ 5252' 0.0 WIPER GAS 560u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 32206 @ 5205' 2494 @ 5197' 12140.7 CONNECTION GAS HIGH NA ETHANE (C-2) 18 @ 5205' 0 @ 5197' 5.2 AVG 72 PROPANE (C-3) 0 @ 5252' 0 @ 5252' 0.0 CURRENT 20 BUTANE (C-4) 0 @ 5252' 0 @ 5252' 0.0 CURRENT BACKGROUND/AVG 20/72 PENTANE (C-5) 0 @ 5252' 0 @ 5252' 0.0 HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Coal, tuffaceous siltstone, tuffaceous claystone, sand, and sandstone PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Wash and ream to bottom. BROOH to 4190' MD. Wash and ream back to bottom. Drill ahead from 5195' MD to 5252' MD. CBU, condition mud, and BROOH. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Don Jones DATE Jun 13, 2012 DEPTH 5252' PRESENT OPERATION Work drill pipe TIME 0500 YESTERDAY 5252' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1757' 49+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5252/5252 MW 9.9 VIS 51 PV 19 YP 13 FL 5.0 Gels 4/14/19 CL- 11000 FC 1/0 SOL 10.1 SD 1.00 OIL 0.0/89.0 MBT 10.0 pH 9.3 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 299u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to BROOH. Stuck drill pipe. Work drill pipe and circulate. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 14, 2012 DEPTH 5252' PRESENT OPERATION POOH TIME 0500 YESTERDAY 5252' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1757' 49+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5252/5252 MW 10.0 VIS 45 PV 15 YP 13 FL 5.0 Gels 4/12/23 CL- 12500 FC 1/0 SOL 11.0 SD 1.00 OIL 0.0/88.0 MBT 12.5 pH 9.3 Ca+ 160 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 83u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue to BROOH to shoe. POOH. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Steve Pike Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 16, 2012 DEPTH 5252' PRESENT OPERATION BOP test TIME 0500 YESTERDAY 5252' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 3495' 1757' 49+ DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5252/5252 MW 9.9 VIS 45 PV 16 YP 14 FL 5.0 Gels 4/18/22 CL- 12000 FC 1/0 SOL 10.0 SD 1.00 OIL 0.0/89.0 MBT 12.5 pH 8.9 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 83u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Pull wireline out of hole, for BOP test CANRIG PERSONNEL ON BOARD 3 DAILY COST $3130 REPORT BY Josh Michaud Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 16, 2012 DEPTH 5252' PRESENT OPERATION Run in hole TIME 0500 YESTERDAY 5252' 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 4 6.125" DS69 5/10 208027 5x10 5252.72 0 0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5252/5252 MW 10.10 VIS 51 PV 18 YP 16 FL 5.0 Gels 5/18/26 CL- 12000 FC 1/0 SOL 11 SD 1.00 OIL 0.0/88.0 MBT 12.5 pH 9.0 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS NA CUTTING GAS @ @ WIPER GAS 83u CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) @ @ CONNECTION GAS HIGH NA ETHANE (C-2) @ @ AVG NA PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NA INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Run in hole CANRIG PERSONNEL ON BOARD 3 DAILY COST $3130 REPORT BY Josh Michaud Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 17, 2012 DEPTH 5252.00000 PRESENT OPERATION Ream/ wash to btm. TIME 23:59:00 YESTERDAY 5252.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2106' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6 .125" DS69 208027 5x10 5252' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5252' MW 9.90 VIS 52 PV 18 YP 13 FL 5.0 Gels 5/16/22 CL- 12000 FC 1/0 SOL 9.0 SD 0.70 OIL 0.0/90.0 MBT 12.5 pH 9.0 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 573u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Cont RIH F 1780' to 2106'. CBU, fill pipe. Cont RIH, CBU @ 2400', 2700', 3300', 3600'. Tag @ 3723'. Ream 3728' - 3880'. Cont RIH to 4901', tight @ 4718', 4748'. POOH from 4901' to 4121' while wok on pump #2. RIH from 4121' to 4568' while cont work on pump #2. Cont RIH 4568' to 4900', TAG. Cont ream to btm 4900' to 5138' @ midnight. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Ralph Winkelman Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 18, 2012 DEPTH 5600.00000 PRESENT OPERATION Drilling TIME 23:59:00 YESTERDAY 5252.00000 24 HOUR FOOTAGE 348 CASING INFORMATION 7" @ 2096' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" DS69 208027 5x10 5252 348' 12.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 157.7 @ 5502 1.1 @ 5253 41.8 6.7 FT/HR SURFACE TORQUE 4690 @ 5547 1646 @ 5419 2531.7 2365 AMPS WEIGHT ON BIT 23 @ 5353 5 @ 5554 7.9 9 KLBS ROTARY RPM 93 @ 5289 80 @ 5547 85.4 83 RPM PUMP PRESSURE 1998 @ 5501 761 @ 5253 1604.7 1769 PSI DRILLING FLUIDS REPORT DEPTH 5599' MW 9.9 VIS 53 PV 24 YP 19 FL 4.8 Gels 4/16/25 CL- 10000 FC 1/0 SOL 9.1 SD 0.50 OIL 0.0/90.0 MBT 12.5 pH 8.4 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 359 @ 5395 5 @ 5259 43.9 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 182u METHANE (C-1) 93383 @ 5395 1114 @ 5259 9399.9 CONNECTION GAS HIGH ETHANE (C-2) 52 @ 5396 0 @ 5260 2.4 AVG PROPANE (C-3) @ @ CURRENT 60 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 20/15 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% sand, 30% tuffaceous claystone, 30% tuffaceous siltstone, 10% coal PRESENT LITHOLOGY 40% sand, 30% tuffaceous claystone, 20% tuffaceous siltstone, 10% coal DAILY ACTIVITY SUMMARY Cont RIH 5138' to 5250'. CBU @ 5250' and clean suction screens. Drill 5252' to 5348'. POH 5348' to 5150' while work on pump #2. RIH 5150' to 5348'. Drill 5348' to 5561', CBU and drop SVY. CBU and drill 5561' to 5600' at midnight. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Ralph Winkelman Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 19, 2012 DEPTH 5686.00000 PRESENT OPERATION Wash to btm TIME 23:59:00 YESTERDAY 5600.00000 24 HOUR FOOTAGE 86 CASING INFORMATION 7" @ 2096' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" DS69 208027 5x10 5252 5686 434 16.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 82.0 @ 5627 1.2 @ 5621 35.6 36.7 FT/HR SURFACE TORQUE 5820 @ 5665 1836 @ 5615 3172.3 AMPS WEIGHT ON BIT 14 @ 5650 3 @ 5651 8.8 9 KLBS ROTARY RPM 94 @ 5670 61 @ 5665 85.0 RPM PUMP PRESSURE 1900 @ 5671 1572 @ 5652 1744.4 PSI DRILLING FLUIDS REPORT DEPTH 5686' MW 9.8 VIS 53 PV 22 YP 18 FL 4.6 Gels 4/14/20 CL- 12500 FC 1/0 SOL 8.0 SD 0.50 OIL 0.0/91.0 MBT 12.5 pH 9.5 Ca+ 260 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 171 @ 5674 15 @ 5655 55.6 TRIP GAS CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 31838 @ 5674 3194 @ 5655.00000 11147.7 CONNECTION GAS HIGH ETHANE (C-2) 30 @ 5633 0 @ 5663.00000 6.5 AVG PROPANE (C-3) @ @ CURRENT 25 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 20/18 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 30% coal, 40% sand, 20% tuffaceous claystone, 10% tuffaceous siltstone PRESENT LITHOLOGY 40% coal, 30% sand, 20% tuffaceous claystone, 10% tuffaceous siltstone DAILY ACTIVITY SUMMARY Drill from 5600' to 5686', CBU, POOH from 5686' to 4040'.No rotating, pump out. Work on pumps. Change packing on #2, welding on #1. Cont POOH 4040' to 2108'. Cont work on pump #1. Change out saver sub and torq into top drive. Service carrier and grease swivel. RIH from 2108' to 5048'. Kelly up and fill pipe. CANRIG PERSONNEL ON BOARD 4 DAILY COST $3130 REPORT BY Ralph Winkelman Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 20, 2012 DEPTH 5686.00000 PRESENT OPERATION POOH TIME 23:59:00 YESTERDAY 5686.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2096' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOV DS69 208027 5x10 5252 5686 434 16.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5686' MW 9.9 VIS 45 PV 20 YP 13 FL 5.0 Gels 3/8/15 CL- 12000 FC 1/0 SOL 7.0 SD 0.50 OIL 0.0/92.0 MBT 12.5 pH 9.2 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 853 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Wash/ Ream 5058' to 5686', trounbleshoot pump #1. CBU. POOH 5686' to 5108. RIH 5108' to 5686', CBU, pump sweep. POOH w/ trip tank to 5000'. RIH from 5000' to 5686'. CBU, pump sweep. POOH on trip tank from 5686' to 3120' at midnight. CANRIG PERSONNEL ON BOARD 4 now 2 DAILY COST $3130 / $2440 REPORT BY Ralph Winkelman Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 21, 2012 DEPTH 5686 PRESENT OPERATION Test BOP TIME 23:59:00 YESTERDAY 5686 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2096' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3RR 6.125" NOv DS69 208027 5x10 5252 5686 434 16.0 2-3-IN GAUGE TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH 5686' MW 9.9 VIS 47 PV 19 YP 14 FL 5.0 Gels 3/9/17 CL- 12000 FC 1/0 SOL 7.0 SD 0.50 OIL 0.0/92.0 MBT 12.5 pH 9.2 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Cont POOH from 3068' to 968'. PJSM at crew change. Cont laydown drill pipe and BHA. PJSM w/ Halliburton. Rig up E-line and load souces. RIH. Tag @ 5448'. Log out of hole. Rig down Halliburton. Service rig, grease swivel. Rig down bails, elevators and pull wear ring. Rig up to test BOP. AOGCC waived test. Cont to rig to test BOP. Test BOP at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2440 REPORT BY Ralph Winkelman Cook Inlet Energy, LLC DAILY WELLSITE REPORT Otter 1-12 REPORT FOR Mike Murray DATE Jun 22, 2012 DEPTH 5686.00000 PRESENT OPERATION CBU TIME 23:59:00 YESTERDAY 5686.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 2096' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING FLUIDS REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBT pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 96u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 15 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Complete BOP test. Laydown test equipment. Rig up to run 4 1/2" casing.Pick up and make up shoe, shoe track and float. PJSM. RIH from 80' to 4760'. PJSM. Cont RIH to 5640'. Lay down casing tools. Rig up bails and elevators. Install circ head. Circ and condition mud while work pipe at report time. CANRIG PERSONNEL ON BOARD 2 DAILY COST $2440 REPORT BY Ralph Winkelman
