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214-072
THE STATE °fI-X - - - GOVERNOR MIKE 17UNLEAVY Zly-0"12 Alaska Oil and Gas Conservation Commission 333 west Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.00gcc.closka.gov December 1, 2020 Crystal Smith Preparedness & Response Region Manager Dept. of Environmental Conservation Division of Spill Prevention and Response 555 Cordova Street Anchorage, AK 99501 John L. Hendrix CEO & President Furie Operating Alaska, LLC 188 W Northern Lights Blvd, Suite 620 Anchorage, AK 99503 Re: Request for determination that Furie Operating Alaska, LLC's wells are incapable of flowing oil to the ground surface Dear Ms. Smith and Mr. Hendrix: By letter dated November 5, 2020, Furie Operating Alaska, LLC (Furie) requested that the Alaska Oil and Gas Conservation Commission (AOGCC) make a determination that none of their operated wells is capable of flowing liquid hydrocarbons to the ground surface. AS 31.05.0300 Under AS 31.05.030(!), the Commission is authorized to determine whether an operator of a natural gas exploration facility has demonstrated with reasonable certainty that its well or wells will not penetrate a formation capable of flowing oil to the ground surface. Such a determination results in the exemption of wells at the natural gas exploration facility from the requirements of AS 46.04.030 and AS 46.04.040. Furie has requested such a determination. Furie's current activities in the Kitchen Lights Unit (KLU) fit the definition of a "natural gas production facility" as defined in AS 46.04.050(b) and not the definition of "natural gas exploration facility found in AS 46.04.050(c) because Furie is engaged in regular production of natural gas from the Julius R. Platform in the Cook Inlet. Since Furie's operations do not involve a "natural gas exploration facility" the AOGCC cannot make a determination under AS 31.05.030(n. However, AOGCC provides this review of Furie's drilling and production operations to the Alaska Department of Environmental Conservation for its consideration. Crystal Smith and John L. Hendrix December 1, 2020 Page 2 of 2 KLU Exploration and Development Well Drilling History Furie's' initial exploration activities in the KLU were to search for oil and gas. During the exploration program, a total of six exploratory wells were drilled. The wells and their current status are listed below: Well Status2 KLU 1 Suspended KLU 2 Plugged and abandoned KLU 2A Suspended KLU 3 Converted to a development well and currently producing KLU 4 Suspended KLU 5 Plugged and abandoned In addition to the six exploratory wells listed above, Furie has drilled an additional four development wells. These wells and their current status are listed below: Well Status KLU A-1 Producing KLU A-2 Plugged and abandoned KLU A -2A Producing KLU A-4 Producing Potential for Flowing Liquid Hydrocarbons to the Ground Surface After review of well records and production data, the AOGCC concludes that it is reasonably certain that none of the Furie-operated wells in the KLU are capable of flowing liquid hydrocarbons to the ground surface. Generally speaking, in the Cook Inlet Basin oil production is not possible from the Upper Tyonek and shallower formations. The only KLU well drilled deep enough to encounter the Lower Tyonek and deeper potentially oil-bearing formations was the KLU 1 exploration well, but data from that well do not indicate the presence of producible liquid hydrocarbons. KLU 1 was subsequently plugged with multiple downhole plugs making it incapable of flowing at all even if producible liquid hydrocarbons had been discovered. Likewise, even though they didn't penetrate potential oil-bearing formations, the KLU 2, 2A, 4, 5, and A-2 wells have also been rendered incapable of any production due to the setting of downhole and surface plugs in the wells. None of the four remaining wells, all of which are currently in production, has ever shown any production of liquid hydrocarbon, nor is there any data in the well records for these wells showing that they encountered any producible liquid hydrocarbons. The initial exploration well in the KLU (KLU #1) was drilled by Escopeta Oil Company, LLC, but Furie is now operator of this and all wells in the KLU. z The three wells listed as suspended have all the necessary downhole plugs and surface plugs that would be required to plug and abandon the well, but the casing has not been cut off below the mudline as required by AOGCC regulations so they cannot be classified as plugged and abandoned. Crystal Smith and John L. Hendrix December 1, 2020 Page 2 of 2 Conclusion After careful review of the production and well data for the KLU wells, the AOGCC concludes that it is reasonably certain that none of the wells that Furie operates is capable of flowing liquid hydrocarbons to the ground surface. Please contact Mr. Dave Roby (at dave.robyna alaska.aov or 793-1232) if you have questions concerning this determination. Digitallysigned Jeremy by JeremYM. Noe Digi[a0ys19nedby M. Priceoate 2020.121)1 Daniel T. Danlel T.Seam unik. 11:43A5-0 WNW.. 202a12a1 Seamount, Jr. NW. Jeremy M. Price Commissioner, Chair cc: Laurie Silfven, DEC Daniel T. Seamount, Jr Commissioner Digaally signed by Jessie L. Jessie L Chnnielomki Chmielowski Date: 2020.12.01 11:26;02 -0400' Jessie L. Chmielowski Commissioner As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or 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 of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days ifthe Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(6), "[t)he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs e�FVRIE �OPERATING ALASKA LLC RECEIVED HOV 0 6 2020 November 5, 2020 Alaska Oil and Gas Conservation Commission AOGCC 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Determination to Request that all FURIE's KLU wells are compliant with AS 31.05.030(1) Dear Chairman Price, Furie Operating Alaska LLC (FURIE) is requesting AOGCC's determination to eliminate the Alaska Department of Environmental Conservation (ADEC)'s requirement for an oil discharge prevention and contingency plan and corresponding proof of financial responsibility placed on Furie under previous ownership. Furie Operating Alaska, LLC submits this letter requesting a determination from AOGCC that all of the producing wells (Table 1) in FURIE's Cook Inlet Kitchen Lights Unit (KLU) produce only natural gas from the Beluga and Sterling formations, with no co -production of liquid hydrocarbons or oil. FURIE also requests determination that there are no wells currently capable of oil or liquid hydrocarbon production from the Tyonek or deeper formations based on the following: • Oil commodity economics are not favorable for the foreseeable future and FURIE has suspended plans to explore and develop deeper, potentially oil-bearing horizons. There are no oil-bearing strata nor oil shows identified within the Beluga and Sterling formations within the 4 producing wellbores (KLU #A-1, KLU #A -2A, KLU #3, and KLU #A-4). There are no other FURIE wells capable of hydrocarbon production. • All producing wells are plugged back to the base of the gas producing Beluga formation. There are currently no producible penetrations of the potentially oil bearing upper or lower Tyonek, nor the Hemlock -Sunfish formations in any of the above noted producing gas wells. There were no tests of liquid hydrocarbons below the top of the Tyonek in any FURIE wells. Three unsuccessful exploratory wells (KLU #4, KLU #2, KLU #1) were drilled, but not tested on company leases and are cemented back to sea floor (Table 2). Two wells (KLU #4, KLU #2) reached total depth within the base of the Beluga formation and did not penetrate deeper potentially oil bearing Tyonek or Hemlock formations. A third well (KLU #1) was a deep exploratory test that terminated in the Tyonek. KLU #1 did not encounter producible hydrocarbons and has been cemented. The open hole portion of the well was plugged back with cement from 15,298' to 13,108' MD, inside 9-7/8" casing shoe located at 13,383' MD. All perforations and productive intervals were cemented with top of uppermost cement plug at 325' MD, 122' below seafloor with 13-3/8" cap installed. All cement plugs were set in place per AOGCC P&A requirements. FURIE requests the AOGCC determination that we are natural gas producer only and, as such, are compliant with AS 31.05.030 and do not have any wells capable of flowing oil or liquid hydrocarbons to the ground surface. (a) AS 31.05.030 (I) that evidence obtained through evaluation demonstrates with reasonable certainty that all of the wells at a natural gas exploration facility will not Penetrate a formation capable of flowina oil to the ground surface. If the drilling of a well at an exploration facility exempted under this subsection does penetrate a formation capable of flowing oil to the surface the owner or operator shall submit an oil discharge prevention and contingency plan and proof of financial responsibility to the department to meet the requirements of AS 46.04.030 and 46.04.040. Finally, FURIE also requests a determination/confirmation that the FURIE KLU production platform and onshore facility produce and process natural gas only, with no capacity to produce or transport liquid hydrocarbons or oil. AS 46.04.050. Exemptions. (a) The provisions of AS 46.04.030 , 46.04.040, and 46.04.060 do not apply to an oil terminal facility that has an effective storage capacity of less than 5,000 barrels of crude oil or less than 10,000 barrels of non -crude oil. (b) The provisions of AS 46.04.030 and 46.04.040 do not apply to a natural gas production facility and a natural gas terminal facility; for purposes of this subsection, "natural gas production facility' and "natural gas terminal facility" mean a platform, facility, or structure that, except for storage of refined petroleum products in a quantity that does not exceed 10,000 barrels, is used solely for the production, compression, storage, or transport of natural gas. (c) The provisions of AS 46.04.030 and 46.04.040 do not apply to a natural gas exploration facility if the Alaska Oil and Gas Conservation Commission has determined under AS 31.05.030 (1) that evidence obtained through evaluation demonstrates with reasonable certainty that all of the wells at a natural gas exploration facility will not penetrate a formation capable of flowing oil to the ground surface. If the drilling of a well at an exploration facility exempted under this subsection does penetrate a formation capable of flowing oil to the surface, the owner or operator shall submit an oil discharge prevention and contingency plan and proof of financial responsibility to the department to meet the requirements of AS 46.04.030 and 46.04.040. For purposes of this subsection, "natural gas exploration facility" means a platform, facility, or structure that, except for storage of refined petroleum products in a quantity that does not exceed 10,000 barrels, is used solely for the exploration for natural gas. Additionally, we would like to reference the attached letter to Crystal Smith P&R Manager dated August 11,2020, Attachment A: Request for suspension of FURIE Operating Alaska's Oil Discharge Prevention and Contingency Plan, Cook Inlet Exploration Kitchen Lights Unit ADEC C -Plan (C - Plan No. 16 -CP -5184) and Relief from Financial Responsibility Requirements. If you have any questions or require further information, please contact Rick Dusenbery at (907) 331-9282, email at r dusenbery(c7funealaska.com or call me at (907) 365-9945. Regards, John. Hendrix CEO resident Fune O rating Alaska, LLC Jessie Chmielowski, Commissioner Dan Seamount, Commissioner Jody Colombie, AOGCC Special Assistant David Roby, Senior Petroleum Engineer Guy Schwartz, Senior Petroleum Engineer Table 1 FURIE Operating Alaska Well Location List and Status WWName C.Ntsu4W API/ MR wmalaraUon nw.ex4.t«1 1 Uw Seub0 TRwnAlp RaW 1ORO4dI0atel NaASa0 WID3) x v velum MU A< Pmducer W733 20632-0 00 218-069 339'FSL, 891'FWL 24 ION IIW Seward 194315.85 2536121.20 AK Za 04 KWA-ZA Pr4durer SP)33-20655-01-00 216-066 8%'FML 343'FSL 24 ION 11W Sewed 29433149 2536125.62 UK #4 KLUA-I Prtl6Mb SP733-206560P00 116-063 884'FML, 341' FSL 24 ION IIW S Nard 294319.20 2536123.89 UZ9 #4 KLU3 FradutM SP]33-i06f0-00-00 113425 348' FS1, 909' FWL 24 ION IIW Seward 294345.00 2536130.00 AK Zone 24 KIU4 S 733-206I6-0000 213-088 I22'FfL,2A22'FNL 8 ION 11W Seward 309226.00 2548%)AO AK Zo N4 KWU SP733-20603-01-00 212147 1,543' FNL 2,470' FEL 35 ION IIW Seward 290842.27 2529019.06 AK Z. p4 KlU1 50,1113.20593-0000 211-039 241' FNL, 2,095'FWL 25 ION IIW Seward 295390.00 3535400.00 AK Zme tl4 KIUAQ IAA SP733-206550000 216455 8%'FW4343'FSL 24 SON 11W Seward 294331.49 2536125.62 AK 2aM K4 KIDS PBA SP733 2%32-0000 214472 95 'FEL, 2.105'F9 22 9N IIW SewaM 286441.00 3506411.00 AK 2oneH KLU2 PAA 50,)3320603-00,00 212079 1,521'INL. 2.802'FWL 35 ION IIW I Seward 290840.19 2529041.92 AN Zaeew FaNNp Zomd6 px./wmt.I WN. R PWUNn 60'56'12-N/151'09'23'W PIIF60re/reduttbn 60L4'09'N1151'19-S0'W Fatll Table 2 -Summary of Wells Awaiting P&A Status Well Status KLU #4 (PTD: 213-088) Dry hole -no economic hydrocarbons encountered Wellbore cemented, incapable of flow KLU #2A (PTD: 212- Dry hole -no economic hydrocarbons 147) encountered Wellbore cemented, incapable of flow KLU #1 (PTD: 211-039) Dry hole -no economic hydrocarbons encountered Wellbore cemented, incapable of flow Comments Drilled to a total depth of 9,163' MD/ 8,639' TVD. Formation at depth of TD: BELUGA. Wellbore cemented. Top of uppermost cement plug at 196' MD, 4' below seafloor. All cement plugs set in place per AOGCC P&A requirements. W.O. 30" casing cut below mudline. Drilled to a total depth of 10,750' MD/ 7,109' TVD. Formation at depth of TD: BELUGA; Wellbore cemented. Top of uppermost cement plug at 227' MD, 15' below seafloor with 13-3/8" cap installed. All cement plugs set in place per AOGCC P&A requirements. W.O cut of 15' of 30" casing remaining above mudline. Drilled to a total depth of 15,298' MD/ 15,298' TVD. Formation at depth of TD: Lower TYON EK. Open hole plugged back with cement from 15,298' to 13,108' MD, inside 9 7/8" casing shoe located at 13,383' MD. Wellbore cemented. Top of uppermost cement plug at 325' MD, 122' below seafloor with 13-3/8" cap installed. All cement plugs set in place per AOGCC P&A requirements. W.O. 30" casing cut below mudline ATTACHMENT A EQRj E VIA RAND DELIVERY/EMAIL August 11, 2020 Alaska Department of Environmental Conservation Prevention, Preparedness & Response Program Division of Spill Prevention and Response 555 Cordova Street Anchorage, Alaska 99501-2617 Attn: Crystal Smith, P&R Region Manager Re: Request for suspension of FURIE Operating Alaska's Oil Discharge Prevention and Contingency Plan, Cook Inlet Exploration Kitchen Lights Unit ADEC C -Plan (C -Plan No. 16 -CP -5184) and Relief from Financial Responsibility Requirements Dear Ms. Smith: Thank you very much for the conference call with you and Graham Wood on August 3, 2020. We were pleased to Introduce some of the new FURZE Operating Alaska LLC management team and provide a brief overview of our company's status, current operations and priorities. FURIE Operating Alaska LLC is exclusively a producer of dry biogenic natural gas with no co -production of any oil or liquid hydrocarbons. The above referenced ADEC C -Plan No. 16 -CP -5184 was developed to address the C -Plan requirements for FURIE's multiyear Cook Inlet Exploration Drilling Program. This C -Plan was originally approved in February 2012, with 5 subsequent revisions, and last updated in July 2018. As a natural gas producer with no current plans to drill or develop oil prospects on our leases, FURIE requests exemption from the requirements of Oil Discharge Prevention and Contingency Plan (ADEC C -Plan No. 16CP-5184) as specified under Alaska Statute 46.04.050. Notwithstanding the foregoing, FURIE Operating Alaska will continue to adhere to all C -Plan, NSE and regulatory requirements pertaining to the safe operation of our existing Cook Inlet KLU natural gas production platform, pipelines and on -shore facilities. In support of our request, the company offers herein a brief summary of our corporate re -structuring and operations. Corporate Profile and Status - FURIE Operating Alaska LLC Chapter 11 debtor FURIE Operating Alaska LLC and related debtor companies, Cornucopia Oil & Gas Company LLC and Corsair Oil & Gas LLC, filed an amended plan of reorganization on June 7, 2020 in the U.S. Bankruptcy Court for the District of Delaware. The plan was accepted by the court on June 11, 2020 and set forth the proposed acquisition of the assets and existing equity interests of the debtors' assets by Anchorage based HEX Cook Inlet LLC (HEX -CI). The transaction closed on lune 30, 2020 and HEX -Cl Page I I Furie Operating Alaska, LLC 1 188 W Northern Lights Blvd, Suite 620, Anchorage, AK 99503 1907.277.3726 Cr"s' frrrWFk,NnsRnlTi took control of the assets on July 1, 2020. Post -closing, FURIE Operating Alaska LLC remains as the designated corporate operating entity. FURIE Operating Alaska LLC has engaged a highly experienced team of professionals to manage company operations in a safe, expedient and socially responsible manner. In all circumstances, the company and management are mandated to protect the public's interest and safety. The new management team is establishing itself as a prudent, diligent and environmentally responsible operator. in all aspects of our business, management Is following best practices designed to optimize ultimate hydrocarbon recovery and create in-state employment, economic development and royalty revenue for Alaskans. Oil Discharge Prevention and Contingency Plan - ADEC C -Plan (C -Plan No. 16 -CP -5184) FURIE Operating Alaska LLC produces only non -associated blogenic dry natural gas from our operated Kitchen Lights Unit (KLU) platform. The dry gas is co-produced with varying amounts of relatively fresh formation water from the Beluga and Sterling formations through four existing gas production wells. The produced gas comprises 99A%methane and is transported from the Cook Inlet offshore gas production platform via pipeline to our onshore gas processing and sales facility. There are no associated oil, condensate, or natural gas liquids produced with the natural gas (Attachment A). Oil commodity economics are not favorable for the foreseeable future and FURIE has suspended plans to explore and develop deeper, potentially oil-bearing horizons. There are no oil-bearing strata nor oil shows Identified within the Beluga and Sterling formations within the 4 producing wellbores (KLU #A-1, KLU #A -2A, KLU #3, and KLU #A-4). All producing wells are plugged back to the base of the gas producing Beluga formation. There are currently no producible penetrations of the potentially oil bearing lower Tyonek or Hemlock formations In any of the above noted producing gas wells. Three unsuccessful exploratory wells (KLU Ill KLU #2, KLU #1) were drilled on company leases and are cemented back to sea floor (Attachment C). Two wells (KLU 114, KLU #2) reached total depth within the Beluga formation and did not penetrate deeper potentially oil bearing Tyonek or Hemlock formations. A third well (KLU #1) was a deeper test that terminated in the Tyonek. KLU #1 did not encounter producible hydrocarbons and has been cemented. The open hole portion of the well was plugged back with cement from 15,298'to 13,108' MD, inside 9-7/8" casing shoe located at 13,383' MD. All perforations and productive intervals were cemented with top of uppermost cement plug at 325' MD, 122' below seafloor with 13-3/8" rap Installed. All cement plugs were set in place per AOGCC P&A requirements. FURIE Operating Alaska LLC is currently updating the 2020 Plan of Development as well as the 2020 Plan of operations. In the past month post -closing, the company has Identified several critical operational and commercial priorities that will be included in the updated plans: • Restoring gas production from the suspended KLU-A4 wellbore • Increasing gas production from the KLU #3, #A -2A, Ill wells • Completing the permitting and installation of produced water handing facilities on the KLU gas production platform Page 12 Furie Operating Alaska, LLC 1 188 W Northern Lights Blvd, Suite 620, Anchorage, AK 99503 1 907.277.3726 6A"U'RIK • Completing thorough technical engineering, geoscience and HSE due diligence on all company owned assets, including pipelines, facilities producing, suspended and P&A wells • Completing several critical commercial and financial tasks relating to insurance, property taxes, gas marketing and operating efficiencies FURIE Operating Alaska LLC is requesting waiver of the existing DEC financial responsibility Insurance requirements as the company is exclusively a producer of dry non -associated natural gas with no co -production of oil or liquid hydrocarbons. FURIE Operating Alaska LLC is not currently exploring for, developing or producing oil or gas liquids, and therefore does not operate any of the following operating structures that require proof of Financial Responsibility. The company requests a suspension of FURIE Operating Alaska's Oil Discharge Prevention and Contingency Plan (ODPCP, C -Plan) and Release from Financial Responsibility Requirements detailed below: • Oil Terminal Facility - facilities with storage capacity more than 5,000 barrels of crude or 10,000 of non -crude. 46.04.900 (15) (ASP). • Pipeline - structures used to transport oil or petroleum products between production facilities or to vessels. 46.04.900 (19) (ASP). • Exploration Facility - platform, vessel, or other facility used to explore for oil resources. 46.04.900 (8) IASP). • Offshore or Onshore Production Facility - drilling rig, drill site, flow station, gathering center, pump station, storage tank, well and related appurtenances. 46.04,900 (201 (ASPI The company currently has $1.63M in existing Bond/CD deposits on file with various Alaska State Agencies (Attachment B). These demonstrate that the company has financial capability and is committed to corporate responsibility as defined by State Law. Should you have any questions or require a technical presentation beyond the information presented here, please do not hesitate to contact the undersigned directly. Thank you for your consideration. Respectfully, Rick Dusenbery C/ Chief Operating Officer FURIE Operating Alaska LLC Page 13 Furie Operating Alaska, LLC 1 188 W Northern Lights Blvd, Suite 620, Anchorage, AK 99503 1907.277.3726 e;:?F,8w,M RX, AttachmentA Kitchen Lights Unit Total Production by Well & Pool Initial Producion to June 30, 2020 Page 14 Furie Operating Alaska, LLC 1 188 W Northern Lights Blvd, Suite 620, Anchorage, AK 99503 1907.277.3726 �> in.RRFa.udv2n'Qf Attachment B - Summary of Bond/CD Amounts FURZE Alaska Operating LLC Type of Bond Agency Bank Bond/CD Reference Amount Drilled to a total depth of 9,163' MD/ encountered p AOGCC AOGCC Northrim 3128440746 $650,000 Blanket Well Bond AOGCC Northrim 7101559313 $200,000 Statewide 011 and Gas SOA,DNR Northrim 7101550668 $500,000 Bond above mudline. KILL) N2A (PTD: 212-147) Dry hole -no economic hydrocarbons Drilled to a total depth of 10,754 MD/ Pipeline DR&R SOA, Div of Mining, Land and Northrim 7102128969 $228,375 BELUGA; Wellbore cemented. Top of Water uppermost cement plug at 227' MD, 15' Pipeline Survey SOA, Div of Mining, Land and Northrim 7102128977 $ 50,000 Water per AOGCC P&A requirements. TOTAL above mudline. $1,628,375 Attachment C - Summary of Suspended Wells Awaiting Final P&A Status Well Status Comments KLU p4 (PTD: 213.088) Dry hole -no emnomic hydrocarbons Drilled to a total depth of 9,163' MD/ encountered 8,639' TVD. Formation at depth of TO: Wellbore cemented, incapable of flow BEWGA. Wellbore cemented. Top of uppermost cement plug at 196' MD, 4' below seafloor. All cement plugs set In place per AOGCC P&A requirements. W.O cot of 15' of 30" casing remaining above mudline. KILL) N2A (PTD: 212-147) Dry hole -no economic hydrocarbons Drilled to a total depth of 10,754 MD/ encountered 7,109' TVD. Formation at depth of TD: Wellbore cemented, incapable of flow BELUGA; Wellbore cemented. Top of uppermost cement plug at 227' MD, 15' below seafloor with 13-3/8" cap Installed. All cement plugs set in place per AOGCC P&A requirements. W.0 cut of 15' of 30" casing remaining above mudline. KW al (PTD: 211-039) Dry hole -no economic hydrocarbons Drilled to a total depth of 15,298' MD/ encountered 15,298' TVD. Formation at depth of TD: Wellbore cemented, incapable of flow TYONEK. Open hole plugged back with cement from 15,298' to 13,108' MD, Inside 9 7/8" casing shoe located at 13,383' MD. Wellbore cemented. Top of uppermost cement plug at 325' MD, 122' below seafloor with 13-3/8" cap Installed. All cement plugs set in place per AOGCC P&A requirements W.0 cot of 35' of 30" casing remaining above mudline. Page 15 Furie Operating Alaska, LLC 1 188 W Northern Lights Blvd, Suite 620, Anchorage, AK 99503 1907.277.3726 • • Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent: Friday, December 04, 2015 10:44 AM To: 'Bob Laule' Cc: 'Regg,James B(DOA) (jim.regg@alaska.gov)' Subject: RE:Sundry 10-403 for KLU5 (PTD 214-072) Bob, After getting all the data and timeline correct the AOGCC agrees that site clearance requirements have been met for KLU -5 (PTD 214-072). The Side Scan clearly shows that the area is clear of debris and the lost pump shuck recovery is documented. Regards, Guy Schwartz " .1 Sr. Petroleum Engineer ��® ��\t� °' AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Bob Laule [mailto:b.laule@furiealaska.com] Sento Thursday, December 03, 2015 9:59 AM To: Schwartz, Guy L(DOA) Subject: Re: Sundry 10-403 for KLU5 Guy I have to make a correction to my E mail of Nov 23.Of the two deep well pump shucks that were recovered on June 23&24 one was from the 2013 drilling season on KLU5 the second was lost from the Spartan 151 in 2015 at the warm stack location near KLU5. Hense only one was present on the KLU5 sidescan(Watson Co.dated Feb 2015)attached. The second clarification regarding the comment that the deep well was 300'away from the Spartan 1512015 location can be explained in that the Spatran 151 position in 2015 was not over the KLU5 location but near by.See attached scans which shows the Spatran 151 location in 2015 versus the well location.Recall in 2015 the Spartan 151 was use as support facilities for the installation of the platform"Julius R".This site was chosen as we had some prior data on the site and it was sufficiently out of the way of anchor arrays in support of the vessels for the construction operations for both the Julius R as well as the pipe line installation. Please advise if this submitted side scan fulfills the requirement of the requested Sundry 314-531.If you have any other questions please let me know. Bob From:"Schwartz,Guy L(DOA)"<guy.schwartz@alaska.gov> Date:Tuesday, November 24,2015 at 4:47 PM To:Admin<b.laule@furiealaska.com> Subject: RE:Sundry 10-403 for KLU5 i • • Bob I am confused to the timeline. Rig left in September 2014...then It looks like the Side Scan was done in October of 2014? The debris was recovered this last summer(June 2015 ) so rig was gone by then. Where was the second deep well shunt. ??? can't see it on scan. Email states it found shunt 300 ft away from rig but scan shows it right there... I am confused. Where exactly were the two lost objects.... Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226)or(Guy.schwartz( alaska.gov). From: Bob Laule fmailto:b.laule©furiealaska.com] Sent:Tuesday, November 24, 2015 4:10 PM To: Schwartz, Guy L(DOA) Subject: FW: Sundry 10-403 for KLU5 Guy inclosed are the post rig release side scan from the KLU5 location.It appears to me that they fulfill the intent of the 10- 403 Bob 2 '1 I' .. . , w ti U MI _, u ta-ID .1i7 il u u;6 ili oci *,,,, c I\ oOSL98Z J OSL98Z �� eM O L.0• , . N 111 Cri C CCOO . . LL O Lo 00i NI a *k Z W / D -O -O i 0 C 2 Z J ; 0 Q LJJ gJce / J a oossaz - — oossaz Q W w a � o � zL • Z Q — J g I E 4tZ .' J Li_ -1 oRI W z ��1,� O O O in 3 OSZ98Z JCO OSZ98Z OU O CON VJN rt gZ O 5 CL 0cn 0 !n o n 1 0 0 0 0 u" In p.�N - -t N N N w SY}.�. ♦ .J' t.f . Q0 -Y=2,507,200 • i m CO N N X X SPARTAN 151 CRP HEADING 211.96°GRID ' 210.92°TRUE X: 286,841.80 Y: 2,506,630.37 Lat: 60°51'20.4053"N Lon: 151°11'43.6930"WI WELL No.5 X: 286,492.85 --- Y: Y: 2,506,411.55 l�� Lat: 60°51'18.1880"N Lon: 151°11'50.6560"W .4,i ste•I‘' " r/ OSS / • • 4/6' 1 V.44 4 -Y=2,506,400 I ‘• NNO " • • • • 0 "SPARTAN 151"7/14 I F 0 Z 0 0 1111 LEGEND erg? FU RI E STRUCTURE HAZARD Operating Alaska LLC • PLATFORM 1 ANCH.PILE Q S( (damaged/sale.) O OBSTRUCTION RIG MOVE (SPARTAN 151) • WELL USCG HAZARD CURRENT POSITION O 0 (damaged/sale.) AVOIDANCE KITCHEN LIGHTS UNIT PIPELINE A ANOMALY SECTION 22, TOWNSHIP 9N, RANGE 11W ACTIVE G CONTACT SEAWARD MERIDIAN, ALASKA OUT OF SERV. - —- BUFFER -——-ABANDONED --—-UN.CONST. MOORING FUGRO CHANCE INC. ?Gnu ----PROPOSED ANCH.ROPE o POSITION — —PROP.ROPE 200 Dulles Drive Lafayette,Louisiana 70506 (337)237-1300 • FEATURE I ANCH./PILE Geodetic Datum: NAD27 0 200 9 VALVE 1 ANCH.BUOY Projection:ALASKA ZONE 4 SCALE Grid Units: US SURVEY FEET 1:2400 FEET ® HUB ® CROSSING Job No: 15-00532 Date: 5/28/15 Drwn: SAT Chart: Of. • 1 1 DWG File: H:\GISIV\2015\1500532\1500532-KCIO\1500532-Map.dwg 11'03:015 • • Schwartz, Guy L (DOA) From: Spartan-Rig 151 <spartan-rig@furiealaska.com> Sent Thursday,June 25, 2015 11:41 AM To: Dave McCraine; Bob Laule;j.pritchard;Gary Henry;Gary Henry;spartan151 Subject: FW: Dive Managers Prelim DPR for 25 June FYI �• FURIE Michael Kistner Rig Clerk/Logistics Cell:907-690-3260 From: Richard Habib<rich@rhsalvage.com> Date:Thursday,June 25,2015 at 11:10 AM To: L Chenault<I.chenault@furiepetroleum.com>,"Oliver Arnold (o.arnold@furiealaska.com)" <o.arnold@furiealaska.com>, "i.christiansen@furiealaska.com"<j.christiansen@furiealaska.com>, "k.billings@furiealaska.com"<k.billings@furiealaska.com>, Les Allen<Iga pipe@telus.net>, "Luttman, Russell" <Russell.Luttman@crowley.com>, "michael.johnson@crowley.com"<michael.johnson@crowley.com>, "Franklin, Kyle" <Kyle.Franklin@crowley.com>, Leland Taylor Jr<lee.taylor@offshore-ocs.com>, Michael Kistner<spartan- rig@furiealaska.com>,James Davies<james.davies@offshore-ocs.com>,"Hendi,Arash" <Arash.Hendi@crowley.com> Cc:"Rosalie Aikin(RAikin@jensenmaritime.com)"<RAikin@jensenmaritime.com>,Johannes Bochdalofsky <Johannes.bochdalofsky@gmail.com>, Krista Perkins<Krista.Perkins@archerwell.com>, "Gordon Olson (Gordon.Olson@Titansalvage.com)"<Gordon.Olson@Titansalvage.com>, Ben Daily<bdaily@gdiving.com> Subject: Re: Dive Managers Prelim DPR for 25 June Update. Dove about 0115-0215 on pig receiver from Clean Ocean.Svenja moved about 50 ft to facilitate.Removed plastic plugs from 3 of 4 holes rear of receiver.Should now be ok for pig launching.Bagged between rear Rcvr past 1st flange on pipe to lift&stabilize Rcvr and flange off seabed.Continued bagging during dive from 0800 to 0845.At end of dive Rcvr appeared to slip partially off bag pipes.Will continue bagging 2000 tide then skip night tide.This leaves Friday to complete ops at north end of pipeline including checking flange to ensure made up suitably for hydro.Current sked puts grouting piles abt Saturday which should leave us enough time to finish at pipeline before shifting back too monopod ops. Sand Island recovered shunt pipe lost last year to Spartan 151 and standing by to support ops in way HDD. 3rd dive team will plan on disconnecting A&R wire about 1800 and support PLB diving till moved aboard as will Sand Island team. Best Regards, Rich Habib Mobile+1954 309 6515 Sent from my iPhone On Jun 24,2015,at 16:40,Richard Habib<rich@rhsalvage.com>wrote: I'm on Clean Ocean on my phone but wanted to keep all informed of dive activities.Will send formal report for 23rd and 24th soonest. Yesterday Sand Island recovered the deep well shunt pipe lost below Spartan 151 to the 151 in 2 dives.Winds &seas prevented 3rd dive last night.This morning Sand Island located the shunt pipe lost last year some 300 ft from Spartan 151 current posit but was unable to get it to 151's crane. 1 • 3rd dive team coming in tonight and will be dedicated to PLB although unable to move aboard till Friday. Depending on logistics either that team or Sand Island team will plan on disconnecting A&R wire tomorrow abt 1130.(Sand Island refueling tomorrow abt that time) Clean Ocean at Svenja this afternoon and disconnected and removed upper portion of old survey umbilical, pile'E'sensors and umbilicals and pile'F'sensors and umbilicals.Will have to clear off Svenja before driving 'A'commences in few hours.Will shift to a/s AMS 250 in time for abt 2400 dive and attempt to raise and bag pig receiver and pipe flange, remove plastic plugs to make ready for pigging.Will also check flange gap to see if square and thus suitable for hydro. If so will tighten steel plugs on Rcvr to make ready for hydro. Will stay a/s barge overnight.During estimate 0700 dive will begin torque up flange to spec and check gap if hydro with Rcvr in place is direction we are going.Torque up may take add dive depending on what we find. CleanOcean team Cn only routinely dive 3 tides in 24 and add overtime will be incurred so that will be appropriately managed.Clean Ocean will then stay anchored up north to take advantage of opportunities to progress Monopod stripping and support grouting. Best Regards, Rich Habib Mobile+1 954 309 6515 Sent from my iPhone On Jun 23,2015,at 18:30,Richard Habib<rich@rhsalvage.com>wrote: Attached. 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N , 0 N > m 0 H 9 N I d N .` N C ce p • m 0 v1 v 0 0 « C U " o Id 16 U m E a O E w N d a 2 p v 1 0 • • Release of Confidential Data Coversheet Well Name: KLU 5 PTD: 214-072 E-Set:T24945,T24946,T25595 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS ✓ Confidential (incomplete) entry in Well Data List notes VImport to DigLogs via E-Set tab VScan labeled data Cy/ Apply OCR text recognition IVP' SLog ave to Well Header Scans ( New"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 12/2/2016 S Guhl, Meredith D (DOA) From: Decker, Paul L (DNR) Sent: Tuesday, October 11, 2016 9:42 AM To: Guhl, Meredith D (DOA) Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: Re: KLU 5, PTD 214-072, Due for Release 10/29/2016 Meredith, DNR has not received a request for extended confidentiality on KLU-5. Thanks, -Paul Sent from my iPhone On Oct 10, 2016,at 9:30 AM,Guhl, Meredith D(DOA)<meredith.guhl@alaska.gov>wrote: Hello Paul, Has extended confidentiality been requested by Furie for KLU 5, PTD 214-072,due for release on October 29, 2016? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 „0„,s7 F RIE 111 Operating Alaska LLC RECEIVED APR 092015 AOGCC DATA TRANSMITTAL CONFIDENTIAL April 9, 2015 Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue,Suite 100 Anchorage, AK 99501 RE: Request for Additional Information on KLU#5: 1. Inclination Survey to TD,digital format. -025595 2. Baker Hughes, paper print of Memory Log, 1:6000 — 024-1945 Dear Ms. Guhl: Enclosed is the requested information from your email date 4-6-15 to include the hard copy Memory Log 1:6000 and an attached CD with the Inclination Survey in digital format. Furie Operating Alaska, LLC hereby transmits to you the above data and log pursuant to our obligations to you under Permit to Drill No. 214-072. Furie Operating Alaska, LLC requests that thus data and Memory Log be held Confidential,as marked on the attached and listed above, in accordance with AS 31.05.035 and 20 AAC 25.537. Please signify that you have received and accepted this data by signing in the space below and returning this letter to me at the Anchorage address above or by fax to me at 907-277-3796. If you have questions, please feel free to contact me at 907-277-3726. Sincerely, Robert B. Laule Furie Operating Alaska, LLC Drilling Engineer RECEIVED AND ACCEPTED ABOVE DATA BY: CC: Vice President,Furie Operating Alaska,LLC Jonathan Iversen,Stoel Rives LLP Furie Operating Alaska,LLC I 1029 W.3rd Avenue,Suite 500 I Anchorage,AK I `9�9�5001 I Office 907-277-3726 ULU, l�u ll ( �"'"`° co L, sortl'7"1 5-RA rte.a IGS • I Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Monday, April 06, 2015 11:48 AM To: 'Bob Laule' Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: KLU 5, PTD 214-072, Initial compliance review Hello Bob, I just completed an initial compliance review of the data received for KLU 5, PTD 214-072, P&A 9/29/14. I'm doing an initial review now so the data is still readily available. The following two items are missing from the data already submitted: 1. Inclination survey to TD, in digital format. 2. From the BakerHughes logs, a paper print of the Memory Log, 1:6000 scale, electronic file name: 2014-09- 26_Futre_KLU5_M D0.2 M EM_TC_2840-11827.pdf Everything else seems to be in order. Please supply the survey in digital format on a CD, because the well is still confidential,and the paper print log by April 20, 2015. If you have any questions, please contact me. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W.7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907)793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 T - - - • Fli RIE RECEIVED OCT 14 Operating Alaska LLC AOGCC NO LONGER DATA TRANSMITTALCONFIDENTIAL CONFIDENTIAL October 14, 2014 OCT 2 9 2016 Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: 10-407 for KLU#5- Kitchen Lights Unit, Confidential Data Kitchen Lights Unit#5 Well Logs and Reports for Abandonment of Well Dear AOGCC: Enclosed is the 10-407 for KLU#5 with attached Wellbore Diagram, Well Operations Summary, Directional Surveys, As-Built Surface Diagram, Diverter Elevation Diagram, BOP Elevation Diagram, Canrig Mud Log Report, and Summary of the Logs with attached CD of all digitally formatted logs, titled "KLU#5 Well Logs", as well as hard copies of logs as specified in Summary. Furie Operating Alaska, LLC hereby transmits to you the above data and reports pursuant to our obligations to you under Permit to Drill No. 214-072. Furie Operating Alaska, LLC requests that these data and reports be held Confidential, as marked on the attached and listed above, in accordance with AS 31.05.035 and 20 AAC 25.537. Please signify that you have received and accepted this data by signing in the space below and returning this letter to me at the Anchorage address above or by fax to me at 907-277-3796. If you have questions, please feel free to contact me at 907-277-3726. Sincerely, Y, Robert B. Laule Furie Operating Alaska, LLC Drilling Engineer RECEIVED AND ACCEPTED ABOVE DATA This 14 th day of October, 2014. BY: CC: Vice President,Furie Operating Alaska,LLC Jonathan Iversen,Stoel Rives LLP Furie Operating Alaska, LLC 11029 W.3rd Avenue,Suite 500 I Anchorage,AK I 99501 I Office 907-277-3726 Y q� ..., . RECIED ic STATE OF ALASKA r'y`t ' i' igi ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND , '.r :cc la.Well Status: Oil U Gas IJ SPLUG Ej Other U Abandoned IXI • Suspended u lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory GINJ n WINJ n WAG n WDSPL ❑ No.of Completions: Service 1=1 Stratigraphic Test 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: Furie Operating Alaska LLC . Aband.: 9/29/14 '214-072 / 3 j-I- S 31 3.Address: 6.Date Spudded: 13.API Number: 1029 W.3rd Ave Suite 500.Anchorage Ak 99501 9/4/14 50-733-20632-00-00 ' 4a.Location of Well(Governmental Section): a°t� �-�V6 7.Date TD Reached: 14.Well Name and Number: Surface: 957.19 FEL,2104.71 FSL,Sec 22,1'0.N,R11 W,SM 9/25/14 Kitchen Light Unit#5 • Top of Productive Horizon: 8.KB(ft above MSL): 95' 15.Field/Pool(s): Tyonek 11,601' GL(ft above MSL): 84' Exploration • Total Depth: 9.Plug Back Depth(MD+TVD): 11,827 MD RKB 209' • 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 286441 y- 2506411 Zone- 4 11,827'MD 11,824'TVD • ADL 389926 TPI: x- 286441 y- 2506411 Zone- 4 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 286441 y- 2506411 Zone- 4 NA NA 18.Directional Survey: Yes Zc ❑ TJ ,' 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) b,� ✓ 84' (ft MSL) NA 21.Logs Obtained(List all logs here and submit electronic and printed informdtion per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: Schlumberger GR/Cal,Triple Combo,330'to 2840'.Baker Hughes LWD GR/Res/Neu/Den 2800 to 11827, Canrig Formation&LWD Combo logs 331 to 11,827' 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE - HOLE SIZE CEMENTING RECORD FT. TOP BOTTOM TOP BOTTOM PULLED 30" 1.5"wall X65 194' 331' 194' 331' Driven Driven 153.57' 10-3/4" 45.5# K55 200' 2840' 200' 2840' 13-1/2" 440 sks 12.5 ppg lead slurry ? 162.53' 47 sks 15.8 ppg tail slurry 24.Open to production or injection? Yes H No 25. TUBING RECORD If Yes,list each interval open(MD+TVD of Top and ottom;Pe oration Size and SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Number): NA 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. r'j4 1/7/_ ' Was hydraulic fracturing used during completion? Yes [] No f yF;� ,r teDEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED (1/41-4- .. 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): NONE Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate -► 28. CORE DATA Conventional Core(s)Acquired? Yes LI No u Sidewall Cores Acquired? Yes I 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. ABC MS OCT 14 2014 'S )2Q y/4/ 3_,ZL-/S' Form 10-407 Revised 10/2012 CONTINUED ON REVERSE ,,i/0„...., Submit original only G • • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Des If yes,list intervals and formations tested,briefly summarizing test results.Attach separate sheets to this form,if needed,and submit Permafrost-Top NA detailed test information per 20 AAC 25.071. Permafrost-Base NA Sterling 5,231' 5,231' Beluga 7,476' 7,476' Tyonek 11,601' 11,601' Formation at total depth: Tyonek f 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Email: b.laule@furiealaska.com Printed Name: Bob Laule Title: Drilling Engreer Signature: f/✓ "4. C�-C,/ Phone: 907-277-3726 Date: 10/14/14 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 10/2012 0 I e. FURIE OPERATING ALASKA,LLC FURIE KITCHENCOOK LIGHTS INLET, UNITALASKA NO.5 Final PLUG AND ABANDON 9-29-14 Operating Alaska LLC WELL BORE SCHEMATIC SL: X-286,492.85; Y-2,506,411.5 BHL: X-286,492.85; Y-2,506,411.5 TUBULARS&SETTING DEPTHS PP MW Frac DIRECTIONAL API: 50-733-20632-00-00 DEPTH(KB) 30 Air Gap (PPG) (PPG) (PPG) FORMATION EVALUATION Permit 214072 MD TVD SS DRILL FLOOR 179 SEA FLOOR 194' 15'131911. lop of 30" ................................. 200' 21'[3ML Top of 10$ ±209 ±30'6M Top of cement- j 331 179'P 30"x 1 1/2"WIT DRIVE PIPE :x ::............................................. 366' Base of cement ii illIos..-- —.maim 1ii 366' 187'BM EZSV Mudlog ii 13 1/2" ELECTRIC LOGS Triple Combo ii iii 2436' TOC — 2747' EZSV GPIT Id NIL 2,838 2,838 10 3/4"45.5#K-55 HC BTC 8.6 9.3 14.9 ,y Unable to break down formation w/8 I 1 •F Mudlog 9 7/8"HOLE MWD/LWD: RESISTIVITY-GR- I I Neutron Porosity/Density I I I I I I I I I I I I 5231 5231 Sterling I I I I I 1 I 1 I 1 I 1 I 1 1 1 1 I 7476 7476 Beluga I 1 I 1 I 1 I 1 I I ELECTRIC LOGS(OPTIONAL): I I None I I I I I 1 I 1 1 I I I I I 1 I I I I I 11601 11601 Tyonek I 1 11810 Tyonek Pick by Dept Natural Resources See DNR letter 10-10-14 from Klye Smith .•— —•—•—•—•— — — _ 11827 11827 10.5 11.9 17.7 I DEM 10/13/2014 KLU#5 P 8 A Schematic.xlsx 10/14/14 • �• r•o• FU RI E 2014 DAILY DRILLING REPOR ' GER 19 ENTIAL Operating Alaska LLC CONFIDENTIAL OCT 2 9 2016 DAY DATE SUMMARY 1 7/17/14 Off location in Port Graham,transferring water to level rig,hooking up lead tug-Ocean Wave,positioning rig in inlet to perform can inspection.Divers performing can inspection for Spartan.Unload 2 Fugro Chance hands and survey box from MN Discovery.Stand by for high tide to begin tow to KLU#5 location,continue to monitor barge for water-tight integrity.All 3 tugs hooked up,lines out,outside Port Graham cut.Making rig turn to get on course,begin tow to KLU#5 location 2 7/18/14 Completed tow to KLU#5 location,jacked up rig for preload operations,rig up sucker pumps.Continue preload operations,install removable cantilever decks, prepare to skid rig package 3 7/19/14 Skid rig to drilling position.Complete preload processes,offload to Sovereign preload rental equipment,jack up to 30'air gap at high tide,skid rig package out Offload drive pipe and hammer equipment,make up and drive 30" 4 7/20/14 Drive 30"conductor at 206'.Offload 30 drive pipe,hammers,and handling equip.,drift&strap all 30",p/u and make up.Complete driving conductor,cut conductor and weld starter head,nipple up diverter system. 5 7/21/14 Welding starter flange.Drove 30"to 331'with 250 BPF,install+10 valve,cut 30"conductor,welding starter flange.Complete welding starter flange,Nipple up diverter,offload and pick up drill pipe. 6 7/22/14 Install slip joint on bell nipple,7-23-14 @ 03:00 hrs.Completed welding starter flange,nipple up diverter system,modify and install bell nipple while off loading drill pipe.Pick up drill pipe and rack in derrick. 7 7/23/14 Off loading HWDP and Drill Collars.Install upper bell nipple,pick up drill pipe and rack in derrick.Pick up remaining drill pipe,HWDP and drill collars and rack in derrick.Inspect and repair any leaks in rotary pan. 8 7/24/14 Performming rig maintenance and clean up @ 0300hrs.7-25-14.Completed offload of tubulars from M/V Discovery.Completed P/U 5"DP,HWDP,and 8"DC and rack back in derrick.Rig maintenance.Off load 5"HWDP,8"drill collars and stabilizers from MV Discovery.Continue to pick up 5"5-135 drill pipe and rack in derrick.Pick 8"drill collars and rack back in derrick.Perform rig maintenance and clean up 9 7/25/14 Cleaning and performing rig maintenance.Perform rig maintenance and clean up,pick up 3 x 8"drill collars and rack in derrick. Perform rig maintenance and clean up,test run wire line unit,change out trip tank fill-up line.Pick up and rack 3 x 8"drill collars in derrick.Repair leak on top drive,the leak was a hydraulic quick connect fitting with a small leak.Change out discharge screen on#3 mud pump.Repair V-door gate on rig floor. 10 7/26/14 Cleaning and performing rig maintenance.Perform rig maintenance and clean up,clear drain lines,install cement line,assist Baker Hughes working on cement unit.Service and grease top drive and crown.Clean out drain lines under pipe deck,flush 1st floor drain to remove blockage.Install 3"chicksan line from cement line under cantilever to cement stand pipe manifold.Service EZ torque,hang cement line in derrick,install Tee in cement line on rig floor.Install disconnect on starboard fuel take on line.Assist Baker Hughes replacing parts on cement unit.Work on safety compliance checklist. 11 7/27/14 Cleaning and performing rig maintenance.Perform rig maintenance and clean up,rebuild 4"valves on mud pump#3,paint hand rails.Test run emergency generator and life boats.Rebuild 4"valves on#3 mud pumps,paint hand rails on port side jack house,substructure and pipe rack stops on upper pipe rack. Run new wire and hook up general alarm in laundry room.Continue to clean drains under upper pipe rack,remove old pad eyes around rig for safety.Hang and install barite take on hose.Test run emergency generator and life boats.Continue to work on compliance list. 12 7/28/14 Cleaning and performing rig maintenance.Cleaning and performing rig maintenance,function all valves,take on 202 bbls diesel,make up discharge line on centrifuge.Buff lifeboats,repair salt system on the Omni pure.Function all valves on rig,fill hydraulic tank on rig floor and HPU skid unit.Hookup discharge line on centrifuge,build and install BOP test chart stand in control room.Run wires to T-Card stands for receptacles,adjust and set Texas deck height and secure pin in drive pipe guide.Drain pollution pans around legs,continue to mop and clean decks.Take on 202 bbls diesel from MV Discovery.Repair Texas deck air hoist handle,repair solenoid on Omni pure unit.Install safety chains and clamps on mud pump jumper hoses on main deck. 13 7/29/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,run all equipment on rig.Run all equipment on rig,clean out oil water separator.Rebuild wilden pump,received drill water and potable water,back load black water to MV Sovereign.Repair oilers on mud pump#3.Change out fittings on HPU on rig floor,scrub top drive and prepare for paint.Continue to scrub and mop deck and rig floor. 14 7/30/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,change out main hoist winch on starboard crane.Clean out and change filters on Omni pure and Owens tank.Cleans out drains around rig floor.Fabricate rack for hanging barite and cement take on lines.Clean out,cut up and dispose of oil drums.Check and mark all jacking motors.Pump out hydraulic tank on starboard crane and clean out same.Change out main hoist winch on starboard crane and fill the hydraulic tank.Clean and prepare top drive for paint,paint top drive.Take on potable water from MV Sovereign.Change out flex line on rod cooler on mud pumps. 15 7/31/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,finish painting top drive,workbench and drillers,finish starboard crane repairs.Paint top drive,work bench and drillers console.Trouble pilot pressure pump on starboard crane winch,re-string main block on starboard crane winch.Prep and paint pipe stops on upper deck.Check and measure stabbing board cable and order new.Replace suction and various fittings on hydraulic pressure unit.Chipping and cleaning upper pipe rack.Clean gray water filters and replace gauges.Sort old hoses around rig and trash bad hoses. 16 8/1/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,chipping and painting.Fabricate and replace handrails.Change filters on kleen tank and#2 Omni pure unit.Continue chipping and cleaning starboard side upper pipe rack and preparing for paint,Replace emergency stop button cover on drillers console.Fabricate and install handrail in substructure,begin repair of main deck handrails on port side.Install U-bolts on hard lines and replace pressure valve on high pressure unit on rig floor.Replace wood cable guards on starboard crane boom. 17 8/2/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance,clean up and painting.Continue to fabricate and replace handrails.Continue to fabricate new handrails on port side of rig.Prime starboard side upper pipe deck,paint pipe stops and handrails in sub-structure.Inventory all extension cords and wire on rig.Reinstall heater in transformer room,paint mud hopper and tear drop bulk tank.Check and repaint fire extinguisher numbers and labels. Weld small pad eyes for to secure tarps around drill line cover.Fabricate and install supports for hydraulic lines from high pressure unit.Continue to install wood cable guards on starboard crane boom. 18 8/3/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,Run all rig equipment and perform integrity checks.Pump off black water and backload MV Sovereign,Run all equipment and perform integrity checks.Drain pollution pans around legs and rig,mop rain water from decks. Function all emergency stops on all generators.Strip preload tanks and install blind flanges.Cut out sheet metal for electrician storage box.Continue to weld out pad eyes for tarps around drill line cover. 19 8/4/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,back load MV Sovereign,trouble shoot#2 air compressor. Continue sucking up rain water and draining pollution pans around legs and rig.Pump black water and back load MV Sovereign.Continue stripping preload tanks,trouble shoot air compressor#2.Fabricate tool box for electrician tool box.Prime support beam for cement unit shed,prime handrails on port side main deck.Off load MV Sovereign. 20 8/5/14 Cleaning and performing rig maintenance.Cleaning and performing rig maintenance,charge and function test all fire hoses.Paint handrails on port side of rig. Cut food disposal stand off deck and weld up drain hole.Continue to fabricate the electrician tool box.Sort and inventory wire rope slings,change out hammer • union on port side water take on line and install new saddle on hose.Continue cleaning pollution pans around legs.Charge and function test all fire hoses on rig.Install new pilot pump and various hydraulic hoses on port crane.Install new fire extinguisher bracket in shaker area.Scrub and mop rig floor and sack room. 21 8/6/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,Paint finish coat on upper pipe rack starboard side.Pump off black water to MV Sovereign.Take on 15,000 gals potable water from MV Sovereign.Chip paint,clean and prime HCR and manual valves,Fabricate drip pan for grey water ball pump on main deck.Continue to sort and check wire slings on rig.Drain rain water from pollution pans on rig and mop water off main deck. Paint finish coat on upper pipe rack starboard side.Finish building electricians tool box,move to SCR room and paint. 22 8/7/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,completed crew change with rig and catering personal.Change oil on#2 generator engine.Paint finish coat on HCR and manual valves.Complete crew change with rig crew and catering crew.Start transferring fuel through centrifuge.Change out 3"fill up line on bell nipple.Greased IBOP and rig equipment,drained pollution pans on leg motors.Chipped paint on paint locker and prepare for primer.Function test HCR valves. 23 8/8/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,installed tarps around trip tank.Installed electrician tool box in transformer room.Continue chipping paint on paint locker.Chip paint,clean and paint Koomey unit on main deck.Continue to clean pollution pans on rig and mop up rain water off decks.Paint remote guards for Koomey unit and reinstall. 24 8/9/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,chipping and painting equipment.Continue to drain pollution pans and mop rain water off decks.Chipped paint off air hoist on main deck to be painted.Cleaned pump room,sack room and Koomey house on rig floor. Worked all choke valves open and closed,greased all equipment in pump and pit room.Function test HCR and manual valves and buffed same in preparation for paint.Replaced three lights in sack room with LED lights,replaced light above second floor entrance to quarters.Finish buffing and prime paint locker.Buff and prime cement line supports.Trouble shoot and repair#2 air compressor. 25 8/10/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,offload rig fuel and backload grey/black water to MV Sovereign. Continue draining pollution pans on leg motors and mopping deck due to rain water.Chipped and primed 15K HCR valves.Hang off block and adjust brakes, kick-back rollers and equalizer bar on draw works.Take on 10,122 gals diesel and back load grey water/black water to MV Sovereign.Apply finish paint to paint locker,air hoist and air hoist pedestal.Trouble shoot and repair malfunction in fire alarm system. 26 8/11/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,Test run all rig equipment,continue painting various items. Drain pollution pans and mop rain water from decks.Chip and paint handrails on starboard side.Finish painting 15K HCR wing valves.Re-install hoist on port side main deck.Clean up motor room.Offload 4 pallets of supplies from MV Sovereign.Prep and paint SCR room and motor shed handrails.Paint sack room exhaust vent.Buff and prepare engine room entry way for paint.Run all rig equipment and#5 generator for 2 hours.Open and check all bulk tanks.Start to fabricate new handrails for Texas deck. 27 8/12/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,take on potable water and pump off grey water to MV Sovereign.Drain pollution pans and mop rain water.Chipped paint on motor room exhaust,supply fan mushrooms and day tank room,spot prime same.Pick up tools and store in proper place.Drain oil and replace oil seals on mud agitator#1 and#2 in mud pits.Continue painting inside SCR room,complete chipping paint on handrails on top of motor shed.Blow out all drains on first floor of quarters.Repair agitator start stop switch and install new 110 volt receptacle above work bench in grey hall.Take on 247 bbls potable water and pump off grey water to MV Sovereign. 28 8/13/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up Set and wire centrifuge for grey wire.Drain pollution pans and mop rain water.Paint wall to welding shop and P 02 vent on bow of rig.Paint work table in pump room and motors on draw works.Skim oil off separator, rebuild 3"air pump for black water line.Set and wire grey water centrifuge.Unload supplies from MV Sovereign,take on potable water.Paint handrails on top motor shed,entry way to engine room and exhaust fan for sack room. 29 8/14/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,continue to work on waste water centrifuge installation.Drain pollution pans and mop rain water.Chipping paint on grocery box,shim and repair door.Clean antifreeze in the motor room from bad hose.Replace bad hose on#4 generator,added 10 gal of antifreeze.Chip and paint handrails on top of rig floor.Paint steps to pump room.Change out stabbing board winch cable. Continue buffing grocery box and prime.Cut and install new safety cage on pit room exhaust fan.Continue to work on waste water centrifuge installation. 30 8/15/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,Fabricate and weld pollution pan for waste water centrifuge. Drain pollution pans and mop rain water.Paint handrails on top of motor shed on top of rig floor,paint finish coat on the grocery box.Paint handrails on stairs going to pump room.Fabricate and weld pollution pan for waste water centrifuge.Change out oil seal on mud agitator#3.Change out hoist on port side under rig floor.Change oil and filter on forklift.Install new cell phone booster in 2nd floor of quarters.Clean up sack room and paint engine room air exhaust and intake vents. 31 8/16/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance and clean up,Fabricate and install pollution pans for waste water centrifuge. Drain pollution pans and mop rain water.Paint stairs going down to motor room from main deck.Continue welding and install pollution pans for waste water centrifuge.Paint inside grocery box and fable same.Install new seals in#1 drill water pump in mud pump room.Clean and paint main stairway in living quarters.Finish transfering fuel through centrifuge. 32 8/17/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance,clean up,and painting. Drain pollution pans and mop rain water. Prime pollution pan for waste water centrifuge.Chip and prime vent cap on port side exhaust vent to sack room.Paint walls and handrails in stairwell in living quarters.Paint stairwell to motor room.Chip bell nipple stumps on starboard side.Change out 4"gate valve in#1 drill water manifold.Clean and organize upper pipe rack and paint locker.Paint floors in living quarters stairwell,main deck around bulk oil tank,pipe guides on V-door.Cut out and weld in new handrail support beam on starboard side of upper pipe deck. 33 8/18/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance,clean up,and painting.Ran grey water centrifuge.Cleaned and mopped all decks.Painted motor room exhaust fan stack.Cleaned and mopped sack room.Start and run grey water centrifuge on port side.Checked degasser pump motor bearing,ran all centrifugal pumps on rig.Ran all mud pit agitators,changed out lockdowns on water tight door to galley.Continue cleaning bilge pump lines.Prepare and prime#6 and#7 SCR room.Paint sack room exhaust fan vent.Fabricate and paint shelf for electrical supplies.Rebuild drill water pump in pump room. Organize main deck and make preparations for supplies. 34 8/19/14 Cleaning and performing rig maintenance.Continue to perform rig maintenance,clean up,and painting.Pump off 347bbls.Of gray water to ISO tanks on M/V Sovereign.Clean up,paint bulk oil tank on main deck,paint on#6 gen house on main deck,paint#6 scr house on main deck, cut out&replace small section of upper cantilever walkway under v-door,back load grocery box&11 loads to M/V Soverign,pump black water ISO tank's,drain pollution pans on leg motors,restencil water tight doors around rig,check and clean out all mud pits,trouble shoot faulty deep well pump,finish label and check dogs on water tight doors,continue painting and checking pollution pans. 35 8/20/14 Cleaning and performing rig maintenance.Fill#2 pit with sea water and ran all equipment for 2 hours,offload M/V Sovereign,repaired standpipe valves, change fastline on port crane.Painting,and clean up,paint.Pulled deepwell shuck,lost one section.Tighten union on#2 deepwell line and took on sea water into pit#2.Ran equipment,draw works,mud pumps,and top drive for 2 hours.Ran shale shakers.Ran all equipment for integrity testing.Greased top drive and crown.Trouble shoot blower motor indicator light in driller's console and repair same.Offload supplies and groceries from M/V Sovereign.Changed out fast line on port crane.Rebuilt#1 standpipe valves on#1 pump.Rebuild#2 standpipe 4" standpipe valve on rig floor. 36 8/21/14 Cleaning and performing rig maintenance.Continue fabrication of 13"deepwell shuck,rig up high pressure test pump on rig floor,function tested diverter valves,fuel up rescue boat.Perform rig maintenance painting,and clean up.Welded flanges on 13"pipe for deepwell pump,rig up high pressure test pump on rig floor,perform inventory on pump parts,fuel up and perform inspection on fast rescue boat.Clean and paint gantry on port crane.Tied up hydraulic hoses to diverter and funtion diverter valves 37 8/22/14 Cleaning and performing rig maintenance.M/U 17 1/2"Bit w/float and baffle plate,calipered and measured all x-overs and put on rack pipe pins,worked and greased standpipe valves. P/U 17 1/2"Bit,Bit sub,float with baffle plate and M/U on 8"drill collars.Worked all stand pipe valves and greased the same. Inventory,measure and install on pipe pins all x-overs,lift subs.Measured all stabilizers.Continued to clean and paint port crane. 38 8/23/14 Cleaning and performing rig maintenance.Continued painting port crane,tested Bl lines from rig floor to Bl unit to 5k for 5 min.,hung 2 sections of deepwell • • shuck,review slickline ops.R/U Bl lines from rig floor to B.1 unit with test pump to 5,000 psi for 5 minutes,good test.Installed 2 deepwell schuck sections and hung off in moon pool.Ran through operations with Spartan workers on.092 slick line unit.Gathering and preparing to move excess iron from rig to lighten variable load.Start cleaning out sand traps.Continuing to paint port crane. 39 8/24/14 Cleaning and performing rig maintenance.Draining pollution pans,backload cargo to M/V Sovereign,clean possum bellies and mud pits,pump off 326 bbls gray water into ISO tanks.Draining pollution pans,backload none essential cargo to M/V Sovereign to reduce variable deck load,clean out possum bellies at the shakers,pump out sea water and clean mud pits.Pump off 326 bbls of gray water to ISO tanks.Take on potable and drill water.Fill mud pits 1,2,&3 with 5 foot of drill water each. 40 8/25/14 Cleaning and performing rig maintenance.Drain pollution pans,rigging up H2S alarm systems and breathing air systems,tested 2 each of Spartan TIW and I- BOP,Spot Canrig shack.Clean up rain water from rig floors.Skim oil/water separator,R/U and function test drill water sprayers located on the shakers,prime all centrifuge pumps in pump room.Function all valves one complete cycle on the standpipe manifold,choke manifold,trip tank,brake cooling system, flow line,shakers,pit room,and the mixing hoppers,all functioned properly.Drain all pollution pans,install whipchecks on all take on lines to rig floor and all vibrator hoses.Assist Total Safety with the rig up of the H2S alarms and breathing air systems.Offloaded Canrig shack and spot same,offload supplies from M/V Sovereign.Pressure test 2 TIW and 2 I-BOP Spartan valves,good test. 41 8/26/14 Cleaning and performing rig maintenance.Completed install of gas detection and breathing air systems for Total Safety,continued R/U of CanRig auto-driller and rig watch systems.Drain pollution pans around legs.Skim oil/water separator and put in used oil tote.Clean and organize sack room.Clean and organize #2 storeroom.Clean engine room on starboard crane.Continue to assist CanRig in the installation of the auto-driller and mud logging equipment.Continue to assist Total Safety in the installation and testing of the gas detection systems.(Complete and function tested).Cleaning up water on the decks. 42 8/27/14 Cleaning and performing rig maintenance.Completed survey for centrifuge feed pump and vac systems,80%complete with CanRig installations,cleaned rain water from decks.Drain pollution pans around legs.Halliburton hands on rig,completed survey for centrifuge feed pump and vacuum system.Modified deepwell shuck and marked every 5 foot to attain low tide footage.Continued the installation of CanRig autodriller and mud logging equipment aprox. 80%complete with CanRig installation.Continue to clean up rain water from decks and skim oil/water sparator..Updated 1SA database for drilling season. 43 8/28/14 Cleaning and performing rig maintenance.Continued the install of the CanRig Rig Watch and mud logging systems,drain pollution pans,pump off 299bb1s of gray water to ISO tanks.Drain pollution pans around legs.clean rain water from decks,skim oil/water seperator put in used oil drums.Rig crew continued to assist Canrig in the installation process of the auto-driller and Rig Watch,mud logging equipment.Inspected all fire stations and renumbered to match blueprints.Inspected and placed 13 1/2"bit on rig floor for BHA#2,along with bit sub. 44 8/29/14 Cleaning and performing rig maintenance.Completed installation and calibration of Canrig systems,Swapped#1 and#2 kelly hose,took on fuel and water from M/V Sovereign.Drain pollution pans around legs.Clean up rain water off decks,Continue to assist CanRig in the installation and calibration of auto-driller and mud logging sensors.Repaired standpipe valve,changed motor on drillwater pump,took on 12,936 gal of potable water and 24,276 gallons of fuel from M.V Sovereign,stopped fuel transfer due to problem with boats fuel pump(getting repaired at dock).Change out standpipe#2 kelly hose with#1 kelly hose on rig floor.Binded down Canrig shack to deck platform. 45 8/30/14 At report time circulating out sand and silt,repairing pump number 3.Com•feted AOGCC diverter and ri:ins.ection.Washed out from 173'to 280'RKB 46 Cleaning out sand from return ditch,shaker manifold,and trip tank.Trouble shoot mud pumps,drill from 280'to 331',attempt to circulate hole clean 47 Monitor well,continue to perform rig maintenance and clean up,at report time wind speed is 50 MPH at the rig.Monitor well,continue to perform rig y, maintenance and clean up.Monitor well,check for fill(none found at 298').Dump and clean out the#3 mud pit.Change out all springs in the#1 mud pump. 'k;.^- Clean sack room,install guards over the encoders on the draw works.Break circulation every 3 hours,continue to monitor well.Drained all leg jacking motor pollution pans,cleaned all mud pumps,continued painting on port crane boom.Cleaned and prepared BOP rams for installation.Changed fire hose on fire station#25 on the rig floor.Fabricated brackets for fire extinguishers and install performing rig maintainence and cleaning. 48 Monitor well,break circulation every 3 hours,continue to perform rig maintenance and clean up.Continue to monitor well,break circulation every 3 hours, and perform rig maintenance and clean up.Cleaning in the pit,pump,and sack room to prepare areas for painting.Check all hoses for the presence of whipchecks.Performed safety evaluation of the rig,drained and cleaned pollution pans around leg motors. 49 Off loading mud chemicals,pot water and barite from MV Sovereign.Monitor well,break circulation every 3 hours,continue to perform rig maintenance and clean up.Cleaning in the pit,pump,and sack room to prepare areas for painting.Check all hoses for the presence of whipchecks.Performed safety evaluation of the rig,work and complete addressing 18 safety issues.Held H2S training with Total Safety.Service shale shakers,mud agitators and all valves in pump room.Clean and organize paint locker. 50 9/4/14 Drilling at 860.Completed rig crew change,took on 1388 sxs of bulk barite,Displaced seawater,Drilled from 331'to 860'. / 51 itjj))eSl.].3..1i. hole from;004'tto 2,168 feet 164_�a 47 FPH.Drill 13 1/2"hole from 860'to 2,004',survey tool failed.Offload Schlumberger unit and tools L from MV Sovereign.Drill to section TD,POOH,R/U Schlumberger and log well. 52 Completed logging to 2,842 WLM.Tripping in hole for wiper trip at 950 feet.Drill to section TD at 2,840,Circulate hole clean and POOH.Held prejob safety meeting and R/U Schlumberger,Logging.Complete logging,Wiper Trip,R/u and run surface casing,cement. 53 Circulating casing prior to cementing at 10 bbls/min and 540 psi.Completed logging and R/D Schlumberger,wiper trip,L/D collars and bit,R/U Weatherford and run casin•.Circulate casing,cement_casing,rungrout string and circulate clean,_spot sugar pill WOC Ng)diverte.,_„-, 54 9/8/14 Nipple down diverter system.Circulate and perform primary cement job,run grout sting to 216',circulate out 58 bbls cement.WOC,and nipple down diverter Complete nipple down,make rough cut,L/D cut joint,make final cut,install and test wellhead,nipple up BOP's. 55 9/9/14 Nipple up BOP's.Nipple down diverter system,make final cut on 10.3/4"qsirs,install and Jest wellhead n jpplinp up BOP's.Nipple uo BOP's,install rams, nipple up bell nipple,P/U BHA,Clean sand traps and mix mud. 56 9/10/14 Installed BOP top pipe rams,installing blind rams.Continue to nipple up BOP's,M/U choke and kill coflex lines,install pollution pan around 30"casing,install BOP control lines.Install BOP rams,shell test BOP's,install bell nipple,Test BOP's,to tsa;jlttg„tat 5011 psi Mill BHA.__. p 57 9/11/14 Nipple up bell nipple.Install BOP iams T..I SkJ4.Q. R,25Q/3500.psi,-testannular to 250/2500 psi,rebuild choke manifold#6 and retest.Nipple up bell nipple, j. make up BHA and TIH,circulate bottoms up and test casing to 1500 psi,drill out,FIT,drill ahead. 58 9/12/14 Tripping for MWD/LWD tool failure.Install bell nipple.P/U and program MWD/LWD tools,TIH,tag cement @ 2,759',Test Casing,Drill to 2,860',CBU,FIT test to (`1 ] .,5,MWEPOOH.bang@_out MWD/LWD tools,TIH,Drill 97/8"hole. 59 9/13/14 Drilling at 4,940',385'at 128 ft/hr.POOH and change out failed MWD/LWD tools,TIH,wash to bottom,no fill.Drill from 2,860'to 4,555'at 126 ft/hr. Continue drilling 9 7/8"hole. 60 9/14/14 Drilling at 7,255'.Drill from 4,555'to 7,038',2883'at 103 FPH.Drill 9 7/8"hole. 61 9/15/14 Drilling at 8,426'.Drill from 7,038'to 7,790',wiper trip to 5,912'.Drill from 7,790'to 8,319'.Drill 9 7/8"hole. 62 9/16/14 Drilling at 9,392'.Drill from 8,317'to 9,288',971'at 40 fph.Drill 9 7/8"hole. 63 9/17/14 Backreaming out of hole at 6,566'.Drill from 9,288'to 10,051',763'at 45 fph.Backream to casing shoe,POOH,R/U and test BOP's,TIH and drill ahead. 64 9/18/14 Testing BOP's.Back ream out of hole from 8,010'to 2,800',Break off bit,remove radioactive source and download LWD.R/U and begin testing BOP's. Complete testing BOP's,M/U bit,change out MWD/LWD tools,tih and drill ahead. 65 9/19/14 Washing and reaming at 7,145'.Completed testing BOP's,Change out MWD/LWD tools.Wash and ream to bottom,drill ahead. 66 9/20/14 Replacing top drive main shaft estimated time to complete rig repairs 12-16 hours.Wash and ream to bottom,drill from 10,051'to 10,107'.Top drive main shaft cracked,work to repair.Complete repairs on to drive,drill ahead. 67 9/21/14 Drilling at 10,171 feet.Completed repairs on top drive,cut and slip drill line,wash to bottom,drill from,10,107'to 10,152'.Drill ahead 68 9/22/14 Removing radioactive source from LWD tools.Drill from 10,152'to 10,203',attempt to POOH,weight up to 11.9 ppg,backream from 9,950'to 2,789'.POOH, download LWD,change bit,TIH to 10,203',drill ahead. 69 9/23/14 Drilling at 10,611'at 03:00 hrs 9/24/14.POOH.Change bit and ORD LWD tool,TIH to 6,737',Wash and ream to 10,203',drill to 10.490'.Drill ahead 70 9/24/14 Drilling at 11,382'at 03:00 hrs 9-25-14.Drill ahead from 10,490'to 10806',service rig,drill from 10,806'to 10,988',repair mud pump,drill from,10,988'to 11,290'.Drill to total depth,condition mud for logging. • 71 9/25/14 Prepare to lay down HWDP at 03:00 hrs 9/26/14.Drill from 11,290'to TD at 11,827',circulate hole clean,POOH to 11,040',Backream from 11,040,POOH to _7.670'.Lay down BHA and drill pipe,test pipe rams. 72 9/26/14 Making up EZSV tool at 03:00 hrs 9/27/14.POOH,download MWD/LWD,break off bit,lay down excess drill pipe from derrick.Lay down remaining excess drill �. P4'Q fat. f�. pipe,test top pipe rams,make up Halliburton EZSV and seiat 2 750' test casing,set cement plugs. • r 73 9/27/14 Circulating seawater at 365',cement unit problems,unable to mix cement,downtime 3 hrs Baker Hughes.POOH,TIH&set EZSV at 2747',Unable establish injection,spot 30 bbl cmt plug,circulate at 2355',lay down DP,Set EZSV at 366'.Set cement plug at 366',circulate clean at 209',nipple down BOP's,cut and pull 10 3/4"casing. �� 31 74 9/28/14 Remove pollution pan and rigging up to cut 30"casing.Set cement plug from 366'to 216',Circulate,POOH,Nipple down BOP's,Cut 10 3/4" casing at 199'RKB. 3, Pull and laying down cut casing.Lay down remaining 10 3/4"casing.Cut and lay out 30"casing.Clean mud system,continue to off load equipment from rig. 75 9/29/14 Cleaning mud pits,cleaning rig floor,cleaning pollution pan under draw works.Lay down 10 3/4"casing,cut and lay down 30"casing,lay down all pipe from derrick,raise texas deck.Clean mud system,clean pollution pans below draw works and rig floor. 76 9/30/14 Venting all preload tanks and clean shale shakers.Completed cleaning rig floor and mud pits,back load M/V Discovery all casing and excess equipment. Complete cleaning shale shakers.Skid in rig package,install blind flanges in preload tanks,prepare to MOBE 77 10/1/14 Cleaning sand traps and backload boat.Completed cleaning pollution pan under draw works.Prepare and skid rig to stow position.Install new deep well pump, Finish cleaning sand traps,remove and back load wing decks,secure equipment in preperation for tow. 78 10/2/14 Preparing rig for move.Completed cleaning sand traps and under shale shakers.Checked all blind flanges,removed heater blankets.Continue to secure all equipment,remove wing decks. 79 10/3/14 Continue preparations for rig move,ETA of tugs 09:30 hrs.Rig down drill floor,remove wing decks,jack down 25',prepare for rig move.Hook up tugs,jack down,confirm water tight integrity,commence tow to Port Graham. 80 10/4/14 Under tow to Port Graham Ak.Tugs arrived at 09:00 hrs,wait on weather,hook up tugs and off location at 16:20 hrs,under tow to Port Graham,Ak.ETA to Port Graham 09:00 hrs,position rig and release tugs. • • Mill KER ADVANTAGE Field Survey Listing HUGHES INTEQ Operator Furie Operating Alaska, LLC Fields Cook Inlet API No 50733206320000 Well Kitchen Lights Unit# 5 Wellbore Kitchen Lights Unit# 5 Orig Hole Rig Spartan 151 Job 6442812 Well Origin Latitude 60.86 deg Longitude -151.20 deg North Reference True Drill Depth Zero Rig Floor Vertical Datum is Mean Sea Level Vertical Datum to DDZ 95.00 ft Vertical Section North 0.00 ft Vertical Section East 0.00 ft Vertical Section Azimuth 0.00 deg Vertical Section Depth 0.00 ft Grid Convergence 0.00 deg Magnetic Declination 16.92 deg Total Correction 16.92 deg TVD Calculation Method Minimum Curvature D-Raw Calculation None Local Magnetic Field 55496 nT Local Magnetic Dip Angle 73.76 deg Local Gravity Field 9.824 m/s^2 Tie MD In ft I deg Intl I Azim deg Nortft h I Eft t I Tft VD I VS ft ITemdpegrFture CR ft EN Ideg/100ftDLS ldeg/1100ftd 1Turn deg/100ft T 0.00 0.00 0.00 0.00 0.00 0.00 0.00 225.00 0.28 140.17 -0.42 0.35 225.00 -0.42 225.00 0.12 0.12 62.30 255.00 0.22 135.60 -0.52 0.44 255.00 -0.52 30.00 0.21 -0.20 -15.23 285.00 0.10 296.69 -0.55 0.46 285.00 -0.55 30.00 1.05 -0.40 536.97 315.00 0.84 218.49 -0.71 0.30 315.00 -0.71 30.00 2.75 2.47 -260.67 345.00 1.20 23.25 -0.59 0.28 345.00 -0.59 30.00 6.74 1.20 549.20 375.00 1.24 20.48 -0.00 0.52 374.99 -0.00 30.00 0.24 0.13 -9.23 392.00 0.46 47.48 0.22 0.64 391.99 0.22 17.00 5.04 -4.59 158.82 405.00 0.55 353.84 0.32 0.67 404.99 0.32 13.00 3.56 0.69 -412.62 422.00 0.71 52.93 0.46 0.74 421.99 0.46 17.00 3.75 0.94 347.59 435.00 0.72 346.02 0.59 0.79 434.98 0.59 13.00 6.06 0.08 -514.69 452.00 0.49 9.42 0.76 0.77 451.98 0.76 17.00 1.96 -1.35 137.65 465.00 0.47 258.58 0.81 0.73 464.98 0.81 13.00 6.08 -0.15 -852.62 482.00 0.88 67.61 0.84 0.78 481.98 0.84 17.00 7.91 2.41 994.29 495.00 0.43 202.00 0.84 0.86 494.98 0.84 13.00 9.39 -3.46 1033.77 512.00 0.44 35.04 0.83 0.87 511.98 0.83 17.00 5.08 0.06 -982.12 525.00 0.56 264.78 0.87 0.84 524.98 0.87 13.00 6.99 0.92 -1002.00 542.00 0.50 48.77 0.91 0.81 541.98 0.91 17.00 5.93 -0.35 847.00 555.00 0.56 296.85 0.97 0.79 554.98 0.97 13.00 6.76 0.46 -860.92 572.00 0.49 55.93 1.05 0.78 571.98 1.05 17.00 5.33 -0.41 700.47 585.00 0.57 283.77 1.10 0.76 584.98 1.10 13.00 7.46 0.62 -1016.62 602.00 0.38 55.39 1.15 0.73 601.98 1.15 17.00 5.12 -1.12 774.24 615.00 0.94 275.94 1.19 0.66 614.98 1.19 13.00 9.64 4.31 -1072.69 632.00 0.45 5.76 1.27 0.53 631.98 1.27 17.00 6.12 -2.88 528.35 645.00 0.84 271.09 1.32 0.44 644.98 1.32 13.00 7.57 3.00 -728.23 662.00 0.47 52.73 1.36 0.37 661.98 1.36 17.00 7.31 -2.18 833.18 675.00 0.55 204.82 1.34 0.38 674.98 1.34 13.00 7.62 0.62 1169.92 692.00 0.48 67.89 1.29 0.41 691.98 1.29 17.00 5.64 -0.41 -805.47 705.00 0.99 133.63 1.24 0.55 704.98 1.24 13.00 6.97 3.92 505.69 722.00 0.48 96.47 1.13 0.72 721.98 1.13 17.00 3.96 -3.00 -218.59 735.00 0.82 75.02 1.14 0.87 734.97 1.14 13.00 3.17 2.62 -165.00 752.00 0.51 117.13 1.14 1.05 751.97 1.14 17.00 3.29 -1.82 247.71 765.00 0.48 65.88 1.14 1.15 764.97 1.14 13.00 3.30 -0.23 -394.23 782.00 0.81 146.81 1.06 1.28 781.97 1.06 17.00 5.14 1.94 476.06 795.00 0.36 104.83 0.98 1.37 794.97 0.98 13.00 4.56 -3.46 -322.92 812.00 0.97 158.86 0.83 1.48 811.97 0.83 17.00 4.78 3.59 317.82 825.00 0.30 136.02 0.70 1.54 824.97 0.70 13.00 5.41 -5.15 -175.69 842.00 0.99 168.00 0.53 1.60 841.97 0.53 17.00 4.43 4.06 188.12 855.00 0.18 137.50 0.40 1.64 854.97 0.40 13.00 6.46 -6.23 -234.62 872.00 0.82 166.87 0.26 1.68 871.97 0.26 17.00 3.94 3.76 172.76 885.00 0.32 115.17 0.16 1.74 884.97 0.16 13.00 5.16 -3.85 -397.69 902.00 0.88 166.06 0.01 1.81 901.97 0.01 17.00 4.25 3.29 299.35 915.00 0.21 141.38 -0.10 1.85 914.97 -0.10 13.00 5.34 -5.15 -189.85 932.00 0.95 177.59 -0.27 1.88 931.96 -0.27 17.00 4.65 4.35 213.00 945.00 0.34 147.18 -0.41 1.90 944.96 -0.41 13.00 5.22 -4.69 -233.92 962.00 1.13 182.10 -0.62 1.92 961.96 -0.62 17.00 5.14 4.65 205.41 975.00 0.58 161.10 -0.81 1.94 974.96 -0.81 13.00 4.80 -4.23 -161.54 992.00 1.56 189.96 -1.12 1.93 991.96 -1.12 17.00 6.40 5.76 169.76 1005.00 0.68 185.23 -1.37 1.89 1004.95 -1.37 13.00 6.80 -6.77 -36.38 1022.00 1.04 187.25 -1.62 1.86 1021.95 -1.62 17.00 2.12 2.12 11.88 Page 1 S 0 n.. ICER ADVANTAGE Field Survey Listing HUGHES INTEQ Operator Furie Operating Alaska, LLC Fields Cook Inlet API No 50733206320000 Well Kitchen Lights Unit# 5 Wellbore Kitchen Lights Unit# 5 Orig Hole Rig Spartan 151 Job 6442812 Tie MD In ft I deg Incl I Azim deg Nfth I Eftt I Tft VD I VS ft ITemdegFperature CRS Ideg/100ftDLS ldeg/1100ftd 1Turn deg/100ft 1035.00 0.57 123.91 -1.78 1.90 1034.95 -1.78 13.00 7.19 -3.62 -487.23 1052.00 1.10 186.97 -1.99 1.95 1051.95 -1.99 17.00 5.78 3.12 370.94 1065.00 0.55 175.94 -2.17 1.94 1064.95 -2.17 13.00 4.38 -4.23 -84.85 1082.00 0.84 180.07 -2.38 1.95 1081.95 -2.38 17.00 1.73 1.71 24.29 1095.00 0.83 122.58 -2.52 2.03 1094.95 -2.52 13.00 6.18 -0.08 -442.23 1112.00 0.96 187.33 -2.73 2.11 1111.94 -2.73 17.00 5.67 0.76 380.88 1125.00 1.08 146.18 -2.94 2.17 1124.94 -2.94 13.00 5.58 0.92 -316.54 1142.00 1.33 197.16 -3.26 2.20 1141.94 -3.26 17.00 6.24 1.47 299.88 1155.00 0.52 147.90 -3.46 2.18 1154.94 -3.46 13.00 8.20 -6.23 -378.92 1172.00 0.61 178.25 -3.61 2.23 1171.94 -3.61 17.00 1.81 0.53 178.53 1185.00 0.48 76.82 -3.67 2.28 1184.94 -3.67 13.00 6.52 -1.00 -780.23 1202.00 0.71 185.39 -3.76 2.34 1201.94 -3.76 17.00 5.74 1.35 638.65 1215.00 0.30 106.39 -3.85 2.37 1214.94 -3.85 13.00 5.51 -3.15 -607.69 1232.00 1.08 192,95 -4.02 2.37 1231.93 -4.02 17.00 6.49 4.59 509.18 1245.00 0.39 140.20 -4.17 2.37 1244.93 -4.17 13.00 6.92 -5.31 -405.77 1262.00 0.74 181.26 -4.32 2.41 1261.93 -4.32 17.00 3.03 2.06 241.53 1275.00 0.69 71.28 -4.38 2.48 1274.93 -4.38 13.00 9.01 -0.38 -846.00 1292.00 0.62 158.82 -4.44 2.61 1291.93 -4.44 17.00 5.34 -0.41 514.94 1305.00 0.47 107.22 -4.52 2.69 1304.93 -4.52 13.00 3.79 -1.15 -396.92 1322.00 1.25 187.03 -4.72 2.73 1321.93 -4.72 17.00 7.38 4.59 469.47 1335.00 0.65 175.77 -4.94 2.72 1334.93 -4.94 13.00 4.81 -4.62 -86.62 1352.00 1.17 185.24 -5.21 2.71 1351.93 -5.21 17.00 3.17 3.06 55.71 1365.00 0.64 161.72 -5.41 2.72 1364.92 -5.41 13.00 4.90 -4.08 -180.92 1382.00 1.68 190.11 -5.74 2.71 1381.92 -5.74 17.00 6.81 6.12 167.00 1395.00 0.87 179.52 -6.03 2.67 1394.92 -6.03 13.00 6.46 -6.23 -81.46 1412.00 1.81 190.33 -6.42 2.63 1411.91 -6.42 17.00 5.70 5.53 63.59 1425.00 0.86 170.38 -6.72 2.61 1424.91 -6.72 13.00 8.03 -7.31 -153.46 1442.00 1.51 179.73 -7.07 2.63 1441.90 -7.07 17.00 3.98 3.82 55.00 1455.00 0.61 150.83 -7.30 2.66 1454.90 -7.30 13.00 7.84 -6.92 -222.31 1472.00 1.25 180.60 -7.57 2.71 1471.90 -7.57 17.00 4.60 3.76 175.12 1485.00 0.73 182.77 -7.79 2.70 1484.90 -7.79 13.00 4.01 -4.00 16.69 1502.00 2.24 190.96 -8.22 2.63 1501.89 -8.22 17.00 8.95 8.88 48.18 1515.00 1.34 194.69 -8.62 2.55 1514.89 -8.62 13.00 6.98 -6.92 28.69 1532.00 1.99 190.12 -9.10 2.44 1531.88 -9.10 17.00 3.90 3.82 -26.88 1545.00 1.01 168.83 -9.44 2.43 1544.87 -9.44 13.00 8.55 -7.54 -163.77 1562.00 1.49 177.14 -9.81 2.47 1561.87 -9.81 17.00 3.01 2.82 48.88 1575.00 0.76 155.03 -10.05 2.51 1574.87 -10.05 13.00 6.43 -5.62 -170.08 1592.00 1.63 184.08 -10.40 2.54 1591.86 -10.40 17.00 6.08 5.12 170.88 1605.00 0.98 148.88 -10.68 2.59 1604.86 -10.68 13.00 7.72 -5.00 -270.77 1622.00 1.31 175.73 -10.99 2.68 1621.86 -10.99 17.00 3.65 1.94 157.94 1635.00 0.56 127.54 -11.18 2.74 1634.85 -11.18 13.00 7.89 -5.77 -370.69 1652.00 1.25 181.82 -11.42 2.80 1651.85 -11.42 17.00 6.05 4.06 319.29 1665.00 0.07 270.41 -11.56 2.78 1664.85 -11.56 13.00 9.62 -9.08 681.46 1682.00 1.26 186.56 -11.74 2.75 1681.85 -11.74 17.00 7.38 7.00 -493.24 1695.00 0.37 180.72 -11.93 2.74 1694.85 -11.93 13.00 6.87 -6.85 -44.92 1712.00 0.91 157.82 -12.11 2.79 1711.85 -12.11 17.00 3.45 3.18 -134.71 1725.00 0.56 94.60 -12.21 2.89 1724.85 -12.21 13.00 6.35 -2.69 -486.31 1742.00 0.97 185.16 -12.36 2.96 1741.85 -12.36 17.00 6.62 2.41 532.71 1755.00 0.28 95.38 -12.47 2.98 1754.85 -12.47 13.00 7.76 -5.31 -690.62 1772.00 0.56 162.06 -12.55 3.05 1771.84 -12.55 17.00 3.04 1.65 392.24 1785.00 0.31 300.45 -12.60 3.04 1784.84 -12.60 13.00 6.29 -1.92 1064.54 1802.00 1.27 175.27 -12.76 3.01 1801.84 -12.76 17.00 8.65 5.65 -736.35 1815.00 0.42 196.75 -12.95 3.01 1814.84 -12.95 13.00 6.87 -6.54 165.23 1832.00 0.60 166.66 -13.10 3.01 1831.84 -13.10 17.00 1.86 1.06 -177.00 1845.00 0.51 8.06 -13.11 3.04 1844.84 -13.11 13.00 8.39 -0.69 -1220.00 1862.00 0.95 178.04 -13.17 3.05 1861.84 -13.17 17.00 8.56 2.59 999.88 1875.00 0.84 131.99 -13.34 3.13 1874.84 -13.34 13.00 5.44 -0.85 -354.23 1892.00 0.61 181.90 -13.52 3.22 1891.84 -13.52 17.00 3.80 -1.35 293.59 1905.00 0.88 105.67 -13.61 3.31 1904.84 -13.61 13.00 7.26 2.08 -586.38 1922.00 0.55 157.79 -13.72 3.47 1921.84 -13.72 17.00 4.09 -1.94 306.59 Page 2 • • • Frill ADVANTAGE Field Survey Listing Num ES INTEQ Operator Furie Operating Alaska, LLC Fields Cook Inlet API No 50733206320000 Well Kitchen Lights Unit # 5 Wellbore Kitchen Lights Unit # 5 Orig Hole Rig Spartan 151 Job 6442812 Tie MD In ft I deg Incl ( Azim deg North East I TVDft I VS Temperature CRS Ideg/100ftDLS ldeg/1I00ftd lTurn deg/100ft 1935.00 0.36 50.83 -13.76 3.52 1934.84 -13.76 13.00 5.69 -1.46 -822.77 1952.00 1.06 193.59 -13.88 3.53 1951.83 -13.88 17.00 8.02 4.12 839.76 1965.00 0.73 150.67 -14.06 3.54 1964.83 -14.06 13.00 5.56 -2.54 -330.15 1982.00 0.37 131.19 -14.20 3.63 1981.83 -14.20 17.00 2.36 -2.12 -114.59 1995.00 1.15 138.58 -14.32 3.75 1994.83 -14.32 13.00 6.03 6.00 56.85 2012.00 0.77 180.00 -14.56 3.86 2011.83 -14.56 17.00 4.51 -2.24 243.65 2025.00 1.24 146.83 -14.77 3.94 2024.83 -14.77 13.00 5.61 3.62 -255.15 2042.00 0.33 130.99 -14.95 4.08 2041.83 -14.95 17.00 5.45 -5.35 -93.18 2055.00 0.90 183.62 -15.08 4.10 2054.82 -15.08 13.00 5.75 4.38 404.85 2072.00 0.39 153.91 -15.27 4.12 2071.82 -15.27 17.00 3.49 -3.00 -174.76 2085.00 1.16 173.22 -15.44 4.15 2084.82 -15.44 13.00 6.17 5.92 148.54 2102.00 0.74 199.99 -15.71 4.13 2101.82 -15.71 17.00 3.53 -2.47 157.47 2115.00 1.06 194.36 -15.91 4.08 2114.82 -15.91 13.00 2.55 2.46 -43.31 2132.00 0.48 101.59 -16.07 4.11 2131.82 -16.07 17.00 6.97 -3.41 -545.71 2145.00 1.08 173.94 -16.21 4.17 2144.82 -16.21 13.00 8.00 4.62 556.54 2162.00 0.80 199.16 -16.48 4.15 2161.81 -16.48 17.00 2.90 -1.65 148.35 2175.00 1.18 187.80 -16.69 4.10 2174.81 -16.69 13.00 3.28 2.92 -87.38 2192.00 0.28 97.49 -16.87 4.12 2191.81 -16.87 17.00 7.14 -5.29 -531.24 2205.00 0.60 242.80 -16.91 4.09 2204.81 -16.91 13.00 6.50 2.46 1117.77 2222.00 0.42 151.85 -17.00 4.04 2221.81 -17.00 17.00 4.34 -1.06 -535.00 2235.00 1.22 223.83 -17.15 3.97 2234.81 -17.15 13.00 8.93 6.15 553.69 2252.00 0.28 198.11 -17.32 3.83 2251.81 -17.32 17.00 5.74 -5.53 -151.29 2265.00 0.94 249.57 -17.38 3.72 2264.81 -17.38 13.00 6.13 5.08 395.85 2282.00 0.53 96.38 -17.44 3.67 2281.81 -17.44 17.00 8.43 -2.41 -901.12 2295.00 0.62 192.03 -17.52 3.71 2294.81 -17.52 13.00 6.57 0.69 735.77 2312.00 0.56 182.81 -17.69 3.69 2311.80 -17.69 17.00 0.66 -0.35 -54.24 2325.00 1.28 242.43 -17.82 3.56 2324.80 -17.82 13.00 8.52 5.54 458.62 2342.00 0.47 279.84 -17.90 3.32 2341.80 -17.90 17.00 5.59 -4.76 220.06 2355.00 1.01 299.63 -17.83 3.17 2354.80 -17.83 13.00 4.54 4.15 152.23 2372.00 0.59 148.68 -17.83 3.08 2371.80 -17.83 17.00 9.13 -2.47 -887.94 2385.00 0.56 36.57 -17.84 3.16 2384.80 -17.84 13.00 7.34 -0.23 -862.38 2402.00 0.52 177.45 -17.85 3.21 2401.80 -17.85 17.00 5.99 -0.24 828.71 2415.00 0.44 69.20 -17.89 3.26 2414.80 -17.89 13.00 5.99 -0.62 -832.69 2432.00 0.26 209.01 -17.90 3.30 2431.80 -17.90 17.00 3.88 -1.06 822.41 2445.00 0.26 119.80 -17.94 3.31 2444.80 -17.94 13.00 2.81 0.00 -686.23 2462.00 0.37 114.63 -17.98 3.40 2461.80 -17.98 17.00 0.67 0.65 -30.41 2475.00 0.39 64.83 -17.98 3.47 2474.80 -17.98 13.00 2.47 0.15 -383.08 2492.00 0.73 144.17 -18.04 3.59 2491.80 -18.04 17.00 4.48 2.00 466.71 2505.00 0.49 135.29 -18.15 3.68 2504.80 -18.15 13.00 1.98 -1.85 -68.31 2522.00 0.42 152.63 -18.26 3.76 2521.80 -18.26 17.00 0.90 -0.41 102.00 2535.00 0.30 69.85 -18.29 3.81 2534.80 -18.29 13.00 3.73 -0.92 -636.77 2552.00 0.19 116.77 -18.29 3.88 2551.80 -18.29 17.00 1.29 -0.65 276.00 2565.00 0.39 65.18 -18.28 3.94 2564.80 -18.28 13.00 2.38 1.54 -396.85 2582.00 0.61 109.23 -18.28 4.08 2581.79 -18.28 17.00 2.51 1.29 259.12 2595.00 0.39 104.75 -18.32 4.18 2594.79 -18.32 13.00 1.72 -1.69 -34.46 2612.00 0.52 163.62 -18.40 4.26 2611.79 -18.40 17.00 2.71 0.76 346.29 2625.00 0.03 28.44 -18.46 4.28 2624.79 -18.46 13.00 4.17 -3.77 -1039.85 2642.00 0.34 93.80 -18.46 4.33 2641.79 -18.46 17.00 1.93 1.82 384.47 2655.00 0.52 63.72 -18.43 4.42 2654.79 -18.43 13.00 2.18 1.38 -231.38 2672.00 0.71 90.65 -18.40 4.60 2671.79 -18.40 17.00 2.00 1.12 158.41 2685.00 0.53 104.85 -18.42 4.74 2684.79 -18.42 13.00 1.81 -1.38 109.23 2702.00 0.68 136.72 -18.51 4.88 2701.79 -18.51 17.00 2.13 0.88 187.47 2715.00 0.22 111.06 -18.58 4.96 2714.79 -18.58 13.00 3.78 -3.54 -197.38 2732.00 0.28 90.46 -18.59 5.03 2731.79 -18.59 17.00 0.63 0.35 -121.18 2745.00 0.28 37.27 -18.56 5.08 2744.79 -18.56 13.00 1.93 0.00 -409.15 2762.00 0.66 102.16 -18.55 5.20 2761.79 -18.55 17.00 3.52 2.24 381.71 2775.00 0.52 116.31 -18.59 5.33 2774.79 -18.59 13.00 1.55 -1.08 108.85 U 2805.00 1.13 129.09 -18.84 5.68 2804.79 -18.84 30.00 2.11 2.03 42.60 2942.00 0.53 138.11 -20.16 7.15 2941.77 -20.16 77.0 137.00 0.45 -0.44 6.59 3036.00 0.30 156.59 -20.71 7.53 3035.77 -20.71 77.0 94.00 0.27 -0.24 19.66 Page 3 Ade KER ADVANTAGE Field Survey Listing HUGHES INTEQ Operator Furie Operating Alaska, LLC Fields Cook Inlet API No 50733206320000 Well Kitchen Lights Unit# 5 Wellbore Kitchen Lights Unit# 5 Orig Hole Rig Spartan 151 Job 6442812 Tie MD In ft I deg Incl I Azim deg North I Efftst I TVD I Sft Temperature CRS EN Ideg/100ftDLS ldeg/1100ftd 1Turn deg/100ft 3128.00 0.31 141.05 -21.12 7.79 3127.77 -21.12 79.7 92.00 0.09 0.01 -16.90 3223.00 0.12 175.56 -21.43 7.96 3222.77 -21.43 79.7 95.00 0.23 -0.20 36.33 3318.00 0.22 147.73 -21.68 8.06 3317.77 -21.68 79.7 95.00 0.14 0.11 -29.30 3413.00 0.09 75.67 -21.82 8.24 3412.77 -21.82 82.4 95.00 0.23 -0.14 -75.85 3508.00 0.22 159.08 -21.97 8.37 3507.76 -21.97 82.4 95.00 0.24 0.13 87.80 3603.00 0.04 199.72 -22.17 8.43 3602.76 -22.17 82.4 95.00 0.20 -0.18 42.79 3696.00 0.14 112.51 -22.25 8.52 3695.76 -22.25 82.4 93.00 0.15 0.10 -93.78 3790.00 0.07 12.75 -22.24 8.63 3789.76 -22.24 85.1 94.00 0.17 -0.07 -106.13 3884.00 0.06 64.17 -22.16 8.69 3883.76 -22.16 85.1 94.00 0.06 -0.01 54.70 3977.00 0.23 150.07 -22.30 8.83 3976.76 -22.30 85.1 93.00 0.26 0.19 92.36 4072.00 0.10 121.10 -22.51 9.00 4071.76 -22.51 85.1 95.00 0.16 -0.14 -30.49 4167.00 0.13 115.83 -22.60 9.16 4166.76 -22.60 87.8 95.00 0.03 0.03 -5.54 4260.00 0.19 125.10 -22.73 9.38 4259.76 -22.73 87.8 93.00 0.07 0.06 9.96 4353.00 0.30 137.89 -23.00 9.67 4352.76 -23.00 87.8 93.00 0.14 0.12 13.76 4447.00 0.25 109.93 -23.25 10.02 4446.76 -23.25 87.8 94.00 0.15 -0.06 -29.75 4542.00 0.03 20.54 -23.30 10.23 4541.76 -23.30 87.8 95.00 0.26 -0.23 -94.09 4637.00 0.15 198.20 -23.40 10.19 4636.76 -23.40 87.8 95.00 0.19 0.13 187.01 4729.00 0.04 234.32 -23.54 10.13 4728.76 -23.54 90.5 92.00 0.13 -0.12 39.25 4824.00 0.31 243.52 -23.67 9.87 4823.76 -23.67 90.5 95.00 0.28 0.28 9.69 4918.00 0.29 276.85 -23.76 9.40 4917.76 -23.76 90.5 94.00 0.19 -0.02 35.46 5011.00 0.28 249.00 -23.81 8.96 5010.76 -23.81 90.5 93.00 0.15 -0.01 -29.95 5105.00 0.30 278.37 -23.86 8.50 5104.76 -23.86 90.5 94.00 0.16 0.03 31.25 5200.00 0.41 278.95 -23.77 7.92 5199.75 -23.77 90.5 95.00 0.11 0.11 0.61 5295.00 0.28 298.72 -23.60 7.38 5294.75 -23.60 93.2 95.00 0.18 -0.14 20.81 5388.00 0.36 271.62 -23.49 6.89 5387.75 -23.49 93.2 93.00 0.18 0.09 -29.14 5481.00 0.22 244.07 -23.56 6.44 5480.75 -23.56 93.2 93.00 0.21 -0.15 -29.62 5575.00 0.22 255.72 -23.68 6.10 5574.75 -23.68 93.2 94.00 0.05 0.00 12.38 5670.00 0.19 163.44 -23.88 5.98 5669.75 -23.88 90.5 95.00 0.31 -0.02 -97.13 5764.00 0.10 159.85 -24.10 6.05 5763.75 -24.10 93.2 94.00 0.10 -0.10 -3.82 5857.00 0.15 125.26 -24.25 6.18 5856.75 -24.25 93.2 93.00 0.10 0.06 -37.20 5953.00 0.40 178.19 -24.66 6.29 5952.75 -24.66 93.2 96.00 0.35 0.26 55.14 6045.00 0.31 174.53 -25.23 6.33 6044.75 -25.23 96.0 92.00 0.10 -0.09 -3.98 6140.00 0.29 211.87 -25.69 6.23 6139.74 -25.69 96.0 95.00 0.20 -0.02 39.30 6232.00 0.33 237.97 -26.03 5.88 6231.74 -26.03 96.0 92.00 0.16 0.04 28.37 6326.00 0.40 246.49 -26.31 5.35 6325.74 -26.31 96.0 94.00 0.09 0.07 9.06 6420.00 0.20 228.48 -26.55 4.92 6419.74 -26.55 96.0 94.00 0.24 -0.22 -19.16 6514.00 0.21 212.31 -26.80 4.71 6513.74 -26.80 96.0 94.00 0.06 0.01 -17.20 6608.00 0.35 202.02 -27.20 4.51 6607.74 -27.20 98.7 94.00 0.16 0.15 -10.94 6701.00 0.14 191.83 -27.58 4.39 6700.74 -27.58 98.7 93.00 0.23 -0.23 -10.96 6797.00 0.22 231.64 -27.81 4.21 6796.74 -27.81 98.7 96.00 0.15 0.09 41.47 6890.00 0.18 293.69 -27.86 3.94 6889.74 -27.86 101.4 93.00 0.23 -0.05 66.72 6983.00 0.22 278.50 -27.78 3.63 6982.74 -27.78 101.4 93.00 0.07 0.04 -16.33 7079.00 0.68 307.57 -27.40 3.00 7078.73 -27.40 101.4 96.00 0.52 0.48 30.28 7173.00 0.60 298.51 -26.83 2.13 7172.73 -26.83 101.4 94.00 0.14 -0.09 -9.65 7264.00 0.46 332.20 -26.28 1.55 7263.72 -26.28 101.4 91.00 0.37 -0.15 37.03 7360.00 0.52 329.51 -25.57 1.15 7359.72 -25.57 101.4 96.00 0.08 0.07 -2.81 7454.00 0.65 334.34 -24.72 0.70 7453.72 -24.72 101.4 94.00 0.14 0.13 5.14 7548.00 0.42 331.87 -23.94 0.31 7547.71 -23.94 104.1 94.00 0.25 -0.24 -2.63 7643.00 0.49 311.69 -23.36 -0.16 7642.71 -23.36 104.1 95.00 0.18 0.08 -21.24 7736.00 0.74 335.60 -22.55 -0.71 7735.70 -22.55 101.4 93.00 0.38 0.26 25.71 7830.00 0.80 326.95 -21.45 -1.32 7829.69 -21.45 104.1 94.00 0.14 0.06 -9.21 7924.00 0.89 342.92 -20.20 -1.89 7923.68 -20.20 104.1 94.00 0.27 0.10 16.99 8018.00 0.70 337.17 -18.97 -2.33 8017.68 -18.97 106.8 94.00 0.22 -0.20 -6.12 8113.00 0.81 347.58 -17.78 -2.70 8112.67 -17.78 106.8 95.00 0.19 0.12 10.96 8208.00 0.85 338.18 -16.46 -3.10 8207.66 -16.46 109.5 95.00 0.15 0.04 -9.89 8303.00 0.74 350.36 -15.20 -3.47 8302.65 -15.20 112.2 95.00 0.21 -0.12 12.82 8398.00 0.81 3.31 -13.92 -3.53 8397.64 -13.92 114.9 95.00 0.20 0.07 13.63 8493.00 0.95 5.97 -12.46 -3.41 8492.63 -12.46 117.6 95.00 0.16 0.15 2.79 8587.00 0.90 1.07 -10.94 -3.32 8586.62 -10.94 117.6 94.00 0.10 -0.05 -5.21 8679.00 0.81 349.74 -9.57 -3.42 8678.61 -9.57 120.3 92.00 0.21 -0.10 -12.32 Page 4 • • EMI KER ADVANTAGE Field Survey Listing HUGHES INTEQ Operator Furie Operating Alaska, LLC Fields Cook Inlet API No 50733206320000 Well Kitchen Lights Unit# 5 Wellbore Kitchen Lights Unit # 5 Orig Hole Rig Spartan 151 Job 6442812 Tie MD In ft I deg Incl I Azim deg ftNorth I East I T YOD I VS Tem degFperature CRS EN Ideg/100ftIdeg/1Build 00ft1deg/100ft 8775.00 0.98 357.15 -8.08 -3.58 8774.59 -8.08 123.0 96.00 0.21 0.18 7.72 8867.00 0.76 5.40 -6.68 -3.56 8866.58 -6.68 123.0 92.00 0.28 -0.24 8.98 8961.00 1.39 348.50 -4.95 -3.73 8960.57 -4.95 125.7 94.00 0.74 0.67 -17.98 9055.00 1.01 351.90 -3.01 -4.08 9054.55 -3.01 128.4 94.00 0.41 -0.40 3.62 9150.00 1.11 350.88 -1.27 -4.34 9149.53 -1.27 128.4 95.00 0.11 0.11 -1.08 9244.00 1.33 346.81 0.69 -4.73 9243.51 0.69 131.1 94.00 0.24 0.23 -4.32 9337.00 1.35 341.05 2.78 -5.34 9336.48 2.78 131.1 93.00 0.15 0.03 -6.19 9431.00 1.31 340.14 4.84 -6.06 9430.46 4.84 131.1 94.00 0.05 -0.04 -0.97 9526.00 1.51 348.20 7.09 -6.69 9525.43 7.09 133.8 95.00 0.30 0.21 8.48 9622.00 1.97 348.65 9.95 -7.27 9621.38 9.95 133.8 96.00 0.48 0.48 0.47 9714.00 2.02 339.56 13.02 -8.15 9713.33 13.02 133.8 92.00 0.35 0.05 -9.88 9809.00 1.79 343.71 16.02 -9.15 9808.28 16.02 136.5 95.00 0.28 -0.24 4.36 9904.00 2.25 354.12 19.29 -9.76 9903.22 19.29 136.5 95.00 0.62 0.48 10.96 9998.00 2.64 356.58 23.29 -10.08 9997.13 23.29 112.2 94.00 0.43 0.42 2.62 10092.00 2.42 350.96 27.41 -10.52 10091.04 27.41 117.6 94.00 0.35 -0.23 -5.98 10190.00 2.23 348.07 31.31 -11.24 10188.96 31.31 117.6 98.00 0.23 -0.20 -2.95 10284.00 2.57 351.36 35.18 -11.93 10282.88 35.18 120.3 94.00 0.39 0.36 3.50 10376.00 2.89 352.78 39.52 -12.53 10374.77 39.52 123.0 92.00 0.36 0.35 1.54 10470.00 3.20 351.72 44.47 -13.21 10468.64 44.47 125.7 94.00 0.34 0.33 -1.12 10563.00 3.39 352.01 49.76 -13.96 10561.48 49.76 128.4 93.00 0.20 0.20 0.31 10657.00 3.24 351.75 55.14 -14.73 10655.33 55.14 131.1 94.00 0.16 -0.16 -0.28 10753.00 3.09 351.05 60.37 -15.52 10751.18 60.37 131.1 96.00 0.16 -0.16 -0.73 10844.00 2.76 354.24 64.97 -16.12 10842.06 64.97 133.8 91.00 0.40 -0.35 3.51 10940,00 2.81 355.56 69.62 -16.54 10937.95 69.62 133.8 96.00 0.08 0.04 1.37 11033.00 2.55 353.02 73.94 -16.96 11030.85 73.94 136.5 93.00 0.31 -0.28 -2.73 11129.00 2.57 357.63 78.21 -17.31 11126.75 78.21 139.2 96.00 0.22 0.03 4.80 11221.00 2.35 356.63 82.16 -17.51 11218.67 82.16 139.2 92.00 0.24 -0.24 -1.08 11317.00 2.24 0.50 86.00 -17.61 11314.59 86.00 141.9 96.00 0.20 -0.12 4.03 11410.00 2.43 355.46 89.79 -17.75 11407.51 89.79 141.9 93.00 0.30 0.20 -5.42 11504.00 2.80 353.41 94.05 -18.17 11501.42 94.05 141.9 94.00 0.41 0.40 -2.18 11598.00 2.80 353.68 98.61 -18.68 11595.30 98.61 144.6 94.00 0.01 -0.00 0.28 11694.00 2.63 354.48 103.13 -19.15 11691.20 103.13 144.6 96.00 0.18 -0.18 0.84 11771.00 2.67 351.98 106.66 -19.57 11768.11 106.66 141.9 77.00 0.16 0.06 -3.25 Projection to TD 11827.00 2.67 351.98 109.24 -19.94 11824.05 109.24 56.00 0.00 -0.00 0.00 Tie Column Legend: I- interpolated tie-point, S- survey station, U - user-defined, T- Surface Notice: Field Copy Only. Certified results will be provided after submission to the Baker Hughes INTEQ office. Page 5 • • i I I I I I = I 1- 0 I I o I 16 I 15 I 14 li 13 II I I I I I I - - - + - - - -.7_, - - - ± - I - - II KITCHEN LIGHTS UNIT #5 NAD2X= 286,492.85' I Y NW 1/4 NE 1/4 I = 2,506,411.55'Lat. 60' 51' 18.188"N Lon. 151' 11' 50.656"W INAD83 — Lat. 60' 51' 16.181"N 21 I_ Lon. 151' 111'58.719"W If 22 23 24 I5♦ 1 957.19' I I SW 1/4SE 1/4 rZ I I I N I I — — — I .� — I— + — ••—I — I I I I I I I I I 28 I 27 I 26 I 25 I I I I I I I I i _' -I- - - - - - - - - 33 I 34 COOK INLET 35 I 36 I HEREBY CERTIFY THAT I AM PROPERLY NOTES: REGISTERED AND LICENSED TO PRACTICE LAND 1)WELL C09RDlNATE OBTAINED USING SURVEYING IN THE STATE OF ALASKA, THAT STARFI DIFFERENTIAL GPS. F U R I E OPERATING ALASKA LLC. THIS PLAT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION, AND 2)TRANSFORMATION: NADCON(ALASKA). THAARETALL CORRECT.ENSIONS AND OTHER DETAILS 3)THIS DRAWING IS NOT FOR NAVIGATION. FINAL WELL LOCATION ONOFLY WELLS IN THE SURVEYED WELL ADRETSHOWN.IAE � KITCHEN LIGHTS UNIT #5 4)SURVEY DATE: 19 JULY 2014. ADL#389926 5)AKCS27 DENOTES ALASKA COORDINATE SE 1/4 OF SECTION 22,TOWNSHIP 9N, RANGE 11W SYSTEM OF 1927. SEWARD MERIDIAN,ALASKA 6)SECTION 22, TOWNSHIP 9N RANGE 11W, FU G RO CHANCE INC. Tut- SEWARD MERIDIAN IS WITHIN THE ALASKA 6671 Southwest vr...oy,score 600 STATE WATERS OF COOK INLET. Houston,T.,,,77074(713)346-3700 GEODETIC DATUM: NAD27 SCALE O 2.000' DIGITAL COPY PROJECTION:AKCS27 ZONE 4 IN FEET I I GRID UNITS: US SURVEY FEET Job No.: 14-01247 Date: 08/15/14 Drwn: RN Chart: Of: ORIGINAL PLAT SIGNED 08/15/14 Q Printed:8/15/14 Dwgfile: D: 2014 140124 CAD 140124701 1 1 • • Spartan 151 NOTE: SHEET#2 HAS 2 WELLHEADS ON IT. WELL NO. KLU#5 DIVERTER ELEVATIONS WITH ONE HEAD DATE: 22-Jul-14 THIS SHEET IS ALL AUTOMATIC WHEN YOU FILL IN LOCATION: KLU#5 "DIVERTER BELL NIPPLE CALCULATION"SHEET AIR GAP 30 RIG FLOOR WATER DEPTH 70Lx95HI ` A • I • BARGE HEIGHT 30'HIGH TIDE 27.89 32.69 t I 4 I r 0 34.5 t lj • I 4 40.74 11.511— .x111.11 1 + ss V 179 MEAN SEA LEVEL MUD LINE • Furie Operating Alaska, LLC 1029W.3rd Ave.Suite 500 Anchorage,AK 99501 • • • e'"? FURIE Operating Alaska LIC SPARTAN RIG VOV WELL NO. KLU#5 WATER DEPTH: 84 FT. DATE: 10-Sep-14 LOCATION: Kitchen Lights Unit AIR GAP 35 RIG FLOOR 11 • EVEN WITH RIG FLOOR TO BOTTOM OF DRIP PAN " • • D p 16.45 • e m W O > O J W J I C 12 O • Q o Q 22.05 o • :1), W u } u z Z & LL 0 N .T • m J O K Q ® O j E ❑°1 w 0 o a o 0 L J . `0 0 LLre SHAFFER 1-- oW I =El l-2 OJ 13-5/8(5M) o I 0 Z 113 [ I g w w CAMERON TYP "U"13-6/8"t 10M SING CAMERON 13S/8,10M SGL. O f�SINGLE, 95 >194.31 5" RAMS,' w Blind/Shear RAMS 179 3-1/16 HCR 4 1/16"manual I I I 4 1/16"manual 3-1/16 HCR■ 40 74 •B1I'• 01110111...1IuI O ''•''I'.'' CAMERON 1 O A • CI ®RAMS--yr 1 1 CAMERON TYPE"U"13.518" - - 10 M DUAL RAMS 6.22 I \I ,, 1 —� �[II 267/8" I �\1 —L—_ 3.22' _____ _ 11-13/16" 30"cutoff MEANS LEVEL • 162.53' MUD LINE 153.57 . t 15.31' + 20.6' Top 30" Top 10-3/4" • . • • ev.) FURIE Operating Alaska LLC Well KLU5 Log Inventroy * 13.5" Open Hole Schlumberger GR/CaL 330' to 2,840' * 13.5" Open Hole Schlumberger Triple combo 330' to 2,840' * 9-7/8"Open Hole Baker Hughes LWD GR/Res/Neu/Den TVD & MD 2,840' to 11,827' * 9-7/8"Open Hole Baker Hughes Annular Pressure MD 2,840' to 11,827' * 9-7/8"Open Hole Canrig Formation Log MD 331'to 11,827' * 9-7/8"Open Hole Canrig LWD Combo Log MD 331' to 11,827' * 9-7/8"Open Hole Canrig Gas Ratio Log MD 331' to 11,827' * 9-7/8"Open Hole Canrig Drilling Dynamics Log MD 331' to 11,827' 1029 W.3rd Avenue,Suite 500 Anchorage,AK 99501 • • Furie Operating Alaska LLC CASING&CEMENTING REPORT Well No./PTD# KLU#5 Date 8-Sep-14 County Kenia State Alaska Supv. Robert Selfridge CASING RECORD-Surface casino TD 2850.00 Shoe Depth: 2770.00 PBTD: N/A Casing(Or Liner)Detail Setting Depths No.of Jts. Size Wt. Grade THD Make Length Bottom Top Shoe/jt 10 3/4 45.5 K-55 BTC 80' 2,850.00 2,770.00 2 F.Collar/jt Totals 80.00 Csg Wt.On Hook: Type Float Collar. Float No.Hrs to Run: Csg tM.On Slips: NA Type of Shoe: Float Casing Crew: weatherford Fluid Description: 9.5 Mud Liner hanger Info(Make/Model): NA Liner top Packer?: _Yes NA No Liner hanger test pressure: NA Centralizer Placement: None CEMENTING REPORT Preflush(Spacer) Type: MudClean II Density(ppg) 8.34 Volume pumped(BBLs) 25 Lead Slurry Type: "G"cement Yield(Ft3/sack): 2.1 Density(ppg) 12.5 Volume(BBLs/sacks): 440 Mixing/Pumping Rate(bpm): 3.5 Tall Slurry Type: "G"cement Yield(Ft3/sack): 1.15 ) Density(ppg) 15.8 Volume(BBLs/sacks): 47 Mixing/Pumping Rate(bpm): 3.5 m Post Flush(Spacer) ( Type: N/A Density(ppg) Rate(bpm): Volume: LL Displacement: Type: Mud Density(ppg) 9.5 Rate(bpm): 6 Volume(actual/calculated): 279/266.5 FCP(psi): 683 Pump used for disp: Cement Unit Plug Bumped? X Yes No Bump press 1600 Casing Rotated? Yes X No Reciprocated? _Yes X No %Returns during job 100% Cement returns to surface? X Yes No Spacer returns? X Yes No Vol to Surf: 58bbl Cement In Place At: 850 am Date: 9/8/14 Estimated TOC: 210' -� 5 5 r Method Used To Determine TOC: Displacement and returns retj:(-b- "" IS Preflush(Spacer) lei).2,' Type: Water Density(ppg) Volume pumped(BBLs) Lead Slurry Type: "G"cement Yield(Ft3/sack): H Density(ppg) Volume(BBLs/sacks): Mixing/Pumping Rate(bpm): Tall Slurry ll',. Type: "G"cement Yield(Ft3/sack): Density(ppg) Volume (BBLs/sacks): Mixing/Pumping Rate(bpm): Post Flush(Spacer) Type: Density(ppg) Rate(bpm): Volume: to Displacement: 51 Type: water/mud Density(ppg) Rate(bpm): Volume(actual/calculated): x FCP(psi): Pump used for disp: cementing unit Plug Bumped? _Yes No Bump press R Casing Rotated? Yes No Reciprocated? Yes No %Returns during job NA • • Cement returns to surface? _Yes _No Spacer returns?_Yes _No Vol to Surf: Cement In Place At: Date: Estimated TOC: Method Used To Determine TOC: Measured displacement • Remarks: • I • FURZE RECEIVED Operating Alaska LLC OCT 0 8 2014 DATA TRANIaIntoiGER AOGCC CONFIDENTIAL October 7, 2014 OCT 2 9 2010 Mr. Meredith Guhl Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Kitchen Lights Unit, Confidential Data Kitchen Lights Unit#5 Well Cutting Samples Dear Ms. Guhl: Enclosed are the KLU#5 washed and dried drill-cutting samples collected during drilling of KLU#5, from depths of 330' to 11,827'. The cuttings are being submitted in accordance with the requirements identified in 20 AAC 25.071 geologic data and logs. Furie Operating Alaska, LLC hereby transmits to you the above samples pursuant to our obligations to you under Permit to Drill No. 214-072. Furie Operating Alaska, LLC requests that these samples be held confidential, as marked on the attached and listed above, in accordance with AS 31.05.035 and 20 AAC 25.537. If you have questions, please feel free to contact me at 907-277-3726. Sincerely, ru Webb Vice President, Governmental and Regulatory Affairs RECEIVED AND ACCEPTED ABOVE DATA BY: AOGCC STAMP HERE PLEASE Angela K. Singh CC: Lars Degenhardt,President,Furie Operating Alaska,LLC Jonathan Iversen,Stoel Rives LLP 1029 W.3rd Avenue,Suite 500 I Anchorage,Alaska 99501 I Office 907.277.3726 !f .6 CT k aE ? 11 7rqe 1g`yf^ #tl'� '.' X�� 01:2_...�. <07 7���\�//ice SHE STATE r,��. l4 �`�%� �° r it- r, y , 333 West Seventh Avenue ��`,ov I,ltN`f'Z S y, : P%RNLI,1 Anchorac,e Alaska 99501 3572 it k n. Q07 27S 14.?"' Bob Laule Drilling Engineer Furie Operating Alaska, LLC 1029 W. 3rd Ave., Suite 500 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, KLU#5 Sundry Number: 314-531 Dear Mr. Laule: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P. oerster Chair DATED this day of September, 2014. Encl. i • 1 STATE OF ALASKA DIVAALASKA OIL AND GAS CONSERVATION COMMISSION J3��l9 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandon Plug for Redrill❑ Perforate New Pool uRepair Wella Change Approved Programa Suspend Plug Perforations Perforate Pull TubingTime Extension Operations Shutdown Re-enter Susp.Well Stimulate B Alter Casing8 Other: _Completion 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Furie Operating Alaska,LLC • Exploratory Development 214-072 • 3.Address: Stratigraphic Service 6.API Number: 1029 W.3rd Avenue,Suite 500,Anchorage,AK 99501 50-733-20632-00-00 . 7.If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? KLU#5 . Will planned perforations require a spacing exception? Yes U No Id I 9.Property Designation(Lease Number): p(43 10.Field/Pool(s): 389 19-7- ANL 03R99aC Exploration . 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 12000- II$?a ' 12,006' 1189,7- 1€600' • 11827 1.20004 1182 NA NA Casing Length Size MD TVD Burst Collapse Structural 331 30" 331 369' N/A N/A Conductor Surface 2840 10-3/4" 2840 2840 3580 psi 2090 psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): NA NA NA NA NA Packers and SSSV Type: N/A Packers and SSSV MD(ft)and TVD(ft): N/A NA I NA I 12.Attachments: Description Summary of Proposal 13.Well Class after proposed work: Detailed Operations Program W BOP Sketch I I Exploratory AXI - Stratigraphicl I Development I I Service 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 9/26/14 Oil El Gas 0 WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: 9/25/14 WINJ El GINJ ❑ WAG Abandoned El. Commission Representative: Guy Schwartz GSTOR El SPLUG 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bob Laule Email b.laule(a)_furiealaska.com Printed Name Bob Laule 907-277-3726 Title Drilling Engineer Signature ) , Phone Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity LJ BOP Test El Mechanical Integrity Test 0 Location Clearance Dill Lc i S`7f-FAD Other: tc G-Gc 4.4!`''• e c r'.:.i..u- C S e. SAk2,*) 444. /a-31-1S Spacing Exception Required? Yes 1=INo li Subsequent Form Required: ib._4.1 0 7 ( i‘;„,.:,.e wa( e c f,v^ 2/67THERO MM S —�/� j el/ Approved by: COMMISSIONER THE COMMISSION Dater ill C� VICO ,00e- f721, Submit Form and Form 10-403(Revised 10/2012) Approved application is valid for 12 mon s ro t dat of approval. Attachments in Duplicate G 1 �, Q R I RBLMS OCT 1 z� • • esi7 FURZE Operating Alaska LLC RECEIVED SEP 262.Q1w. September 26, 2014 AOGCC RE: 10-403 for KLU#5 Abandonment Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue,Suite 100 Anchorage, AK 99501 Gentlemen, Enclosed is the 10-403 Sundry Notice, for the Abandonment of Furie Operating Alaska, LLC (FOA) Well KLU#5 (Permit to Drill # 214-072). This exploration well has met its planned objective of penetrating the top of the Tyonek formation fulfilling Furie's obligation under the Kitchen Lights Unit Plan of Exploration. FOA has attached the Summary of the Well Suspension Procedure, KLU#5 Well Bore Diagram and the Baker Hughes Cement Lab Report for the Proposed Abandonment Plugs. Furie Operating Alaska, LLC requests that this information an all it's attached documents be held as "Confidential", in accordance with AS 31.05.035 and 20 AAC 25.537. If you have questions, please feel free to contact me at 907-277-3726. Sincerely, RECEIVED AND ACCEPTED ABOVE DATA igBY: Bob Laule Drilling Engineer AOGCC Received Stamp Here: Furie Operating Alaska, LLC 1029 W. 3rd Avenue, Suite 500 I Anchorage,Alaska 199501 I Office: 907-277-3726 FURIE Operating Alaska LLC Abandonment Plan Summary for Furie Operating Alaska well KLU#5 • POH and LD drilling assembly. • Install test plug and Test one set of rams against the Drill pipe. • Pull test plug. • PU 10-3/4 EZSV and set at 2750' MD RKB. (10-3/4" shoe at 2838' ) . v • Set down with 10K to confirm EZSV placement; Placement to be witnessed by AOGCC inspector. • RU Cementers. • Test lines to 3500 psi. , N ' • Sting into retainer and establish injection rate and pressure. Unsting from retainer. • PT casing to 1500 psi for 30 minutes and record on chart recorder. • Mix and pump minimum of 490' of plug. 273 sacks class G 15.8 ppt cement. • Displace cement to within 15 bbl of stinger. Sting into retainer and squeeze 409 linear ft (227 sks) under retainer. • PU and spot a balanced plug of 90 linear ft of cement ( 46 sks. ) • Pull out of cement retainer. • POH. • PU 10-3/4" EZSV bridge plug. • RIH and set at 364' (185' BML) . • Set down with 10K to confirm placement. • Spot 75 sks balanced plug from 364 to 209' . (30' BML) CBU. • POH. • ND BOP. • Cut off 10-3/4" slip lock well head. • PU 10-3/4" casing cutter assy and RIH. • Cut 10-3/4" casing at 199' (20' BML) Accurately tally casing for verification of depth of cut for AOGCC. • LD cutting assembly. • LD 10-3/4' casing. • PU 30" casing cutter and cut casing at 194' (15' BML) . • LD casing cutter. • LD 30" casing. Accurately tally casing for verification of depth of cut for AOGCC. • RD Rig. • Side scan of abandoned location to be deferred to a later date at lease--raba.radonme 02 + ; (IZ- 31 i`3 ) 0 • FURIE OPERATING of ALASKA, LLC ,00001111111:00 FURIE' KITCHEN LIGHTS UNIT N0.5 COOK INLET,ALASKA Operating Alaska LLC PROPOSED PLUG AND ABANDON WELL BORE SCHEMATIC SL: X-286,492.85; Y-2,506,411.5 BHL: X-286,492.85; Y-2,506,411.5 TUBULARS&SETTING DEPTHS PP MW Frac DIRECTIONAL API: 733-20632-00-00 DEPTH(KB) 30 Air Gap (PPG) (PPG) (PPG) FORMATION EVALUATION Permit 214072 MD TVD SS DRILL FLOOR RKB TO SEA FLOOR 83 HIGH TIDE _..� 109 MEAN LOW LOW WATER 179 SEA FLOOR —'193^15'BML lop ot 30" 199' 20'BML Top ot 10 3/4" A 209 30'BML lop of cement 331 179'P 30"x 1 112"W/T DRIVE PIPE 364' Base of cement • 364' 185'BM EZSV Mudlog 13 112" ELECTRIC LOGS 11.9 ppg mud Triple Combo ii i'.':.:::::.:?..:.?:::.:.::..:......:....:..:... ...... .......... 2660' TOC 2750' EZSV GPIT ' ` 2,838 2,838 10 3/4"45.5#K-55 HC BTC 8.6 9.3 14.9 IIiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii i - - ------------------- --'. i 3238' Base of cement 1 Mudlog I I 9 7/8"HOLE MWD/LWD: RESISTIVITY-GR- I1 Neutron Porosity/Density I 1 1 1 1 11.9 ppg mud 1 I I I 5231 5231 Sterling 1 I I 1 I I 1 I 1 I I I 1 I I 7381 7381 Beluga I I I I I I I 1 I ELECTRIC LOGS(OPTIONAL): Triple combo I 1 FMI;MDT;Dipole Sonic; I 1 Sidewall Cores:MRI 1 1 1 1 1 1 1 1 I I I I I 1 11600 11600 Tyonek I I 11827 11827 10.5 12 17.7 DEM 9/08/2014 KLU#5 P&A Schematic R1.zlsz 9/26/14 • • rs. BAKER MOMS Proposal No: 941550827E FURIE OPERATING ALASKA LLC KLU#5 API# 50-733-20632-0000 WILDCAT Field Kenai Offshore County,Alaska September 25, 2014 Cement Proposal Prepared for: Prepared by: Bob Laule David M Kleven Sr Drilling Engineer Region Engineer Furie Operating Alaska, LLC Service Point: Service Representatives: PP, KENAI Kenneth Nix III Bus Phone: 907-7764084 Not Defined (907)659-2329 Fax: 907-776-5606 Powered by PowerVision Gr4105 • • Operator Name: FURIE OPERATING ALASKA LLC Vi.. Well Name: KLU#5 BAKER Job Description: 2 Surface Plugs INMO Date: September 25, 2014 Proposal No: 941550827E JOB AT A GLANCE Depth(TVD) 11,892 ft Depth(MD) 12,000 ft Hole Size 9.875 in Casing Size/Weight 10 3/4in, 45.5 lbs/ft Pump Via Drill Pipe 5"O.D. (4.276".I.D) 19.5 Total Mix Water Required 1,714 gals Plug No: 1 Plug Slurry Class G 273 sacks Density 15.8 ppg Yield 1.15 cf/sack Plug No: 2 Cement Slurry Class G 75 sacks Density 15.8 ppg Yield 1.16 cf/sack Report Printed on September 25 2014 2 43 PM Page 1 Gr4109 Have more questions? You can find us at: http://www.bakerh ughes.com/products-and-services/pressure-pumping 0 • Rev. E BAIIfiA■ West Coast Area Laboratory Report 8.26.14 R HUGHES Resort#: CMT067614A Client/Well Information: Com•an : Furie District: Kenai Death MD: 2808 Field: Kitchen Li•hts Job T .e: Plu. Death TVD: 2808 111=2I KLU 5 Hole Size: 9-7/8" BHST: 106 Pre•ared for: Bob Laule Casin. Size: 10-3/4" BHCT 92 Submitted b : David Kleven Cement: Class G Water: MINEMIEMII - : : Yarbrou.h • #: Alaska 31:, � » .; ..: 9/15/14 Slurry Design:" Static Free 0.005 lb/sack , ',',*.:,?i9f Class G 100 szi FL-63 0.7 %BWOC Additives CD-32 0.3 %BWOC FP-6L 1 al/100sacl ASA-301 0.1 %BWOC Slurry Properties: t t 15.81141117=04 tetttui 1.15 ft3/sack Mill r.... r .. 4.933 MVI ,7:.,-;:.;,,,,,,..t.:, ;:.;,, ,,ir,15,, `'45, ht wt t 60 rpm 30 rpm 6 rpm 3 rpm PV YP Ambient Bingham Plastic 92 F 0 168 127 78.5 56 38.5 18 13.5 154 21 i - AL )aE ;rf f t may: Free Water: 90 deg 0 4. d,.A ���� Fluid Loss: 48 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): -7,a, . S•on•e b" '.n . �.�����- � �„�, 0'`6c: 4:06 100 bc: 600 40000— 100 540 36000= 90 Y 480= 32000= 80 1 420 28000— 70 I360 1 24000— 60 300= 20000= 50 240= 16000— 40 2000— 30 + 120 + 18000 1720 —`� 60 — 4000— 10 E ow 0 0 0 0:00 1:00 2:00 3:00 4:00 5:00 Tittle (HH:NM) Compressive Strength Data: ' " '. 5:21 7:13 „-.. , i,. ,.talc, ;, i.i ,; �,.. v 106 NA 50 •si 500 •si 834 1841 3458 4238 ---- 40020 - 5000 360 — 18 4500 320 10 — 4000 280 14- 3600 240 E, 1 2 — 3000 200 10 2500 — 160 = 8 = 2000 = ~ - 1 20 = 6 = 1 500 Id _� O 80 — 4 + 1 000 = 40 — 2 — 500 O O O f 1 1 f 0 12 24 36 48 Tirr. (1-111) 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. Rev. E "/all West Coast Area Laboratory Report 8.26.14 BAKER HUGHES Re•ort#: CMT063814B ClientNVell Information: Furie District: Kenai Depth •,, ;u.. 2808 Field: Kitchen Lights Job Type: Surface Depth TVD:- ."" " 2700 Well: KLU 5 ;,:Hole Size: 13-1/2" BHST: 91 Prepared f•.• Dave McCraine easing Size: 10-3/4" BHCT 81 Submitt=" David Kleven Cement: Class G Water: Fresh Tap "' Yarbrou•h Alaska 9/1/14 Slurry Design: Static Free 0.005 lb/sack FP-6L 1 !al/100sacl Class G 1100 % R-3 0 % BWOC A-7(CaCl2) 1 % BWOC Additives FL-63 0.7 % BWOC CD-32 0.3 % BWOC ASA-301 0.1 % BWOC Slurry Properties: 15.8 ppg 1.16 ft3/sack - Mix Wat ., 4.937 gal/sack Rheology: 600 rpm 300 rpm 200 rpm 100 rpm 60 6 rpm 3 rpm Bingham PV YP Ambient Plastic 81 F 0 200 146 89 65 43 21 19 181 24 Gel ''m' lir ix ..,. .. ¢0 Free Water: 90 de• 0 ,,tren•th ---- *.,Ra. . „a . 50 cc/30min Consistometer Recording of Bearden Consistency(Time is in hrs:min): arzfrmt 4 2:57 100 bc: 600 - 40000— 100-- 5.40— 36000—7. 90— 480— 32000— 80— 420— 28000' _ Q 70— 360— Wy,, 24000— g 60 300— m 20000— j 50—" 240— QQ®® 16000— 40-- I 180— 12000:_ I 30— 120— 8000 Iv 20 ��� / 7. 60 - 4000— 10—.. _A=0 o O i I i 0:00 0:30 1:00 1:30 2:00 2:30 3:00 3-.30 lime(HH:MN) Compressive Strength Data: 4:25 7:17 iiia�..y _ ,, , ,.... ,..ms _ :: - iiiiii 91 Q ,; °>2 637 1370 ------ 400 20— 5000— 360 — 18— 4500 320 '— 16— 4000 280 '- 14— W 3500— ' -H ' - 240— 12 3 3000 H. 200— 10— 2500 _- _ _—...__________El H 160 = ; 8— 2000— 120 '— 6— 1500—_ _ I Ir _ -- 80_ O 4- 1000 — - 40 = 2_ 500—_ 0:00 3:00 6:00 9.00 12 00 Time(HH:MM) 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. • . Operator Name: FURIE OPERATING ALASKA LLC IMR Well Name: KLU#5 BAKER Job Description: 2 Surface Plugs HUGHES Date: September 25, 2014 Proposal No: 941550827E FLUID SPECIFICATIONS PLUG VOLUME VOLUME NO. CU-FT FACTOR AMOUNT AND TYPE OF CEMENT 1 315 / 1.15 = 273 sacks Class G Cement+0.005 lbs/sack Static Free+0.7%bwoc FL-63+0.3%bwoc CD-32+0.1%bwoc ASA-301 + 1 gals/100 sack FP-6L+43.7%Fresh Water 2 87 / 1.16 = 75 sacks Class G Cement+0.005 lbs/sack Static Free+ 1%bwoc Calcium Chloride+0.7% bwoc FL-63+0.3%bwoc CD-32+0.1%bwoc ASA-301 + 1 gals/100 sack FP-6L+43.7% Fresh Water CEMENT PROPERTIES PLUG PLUG NO.1 NO.2 Slurry Weight (ppg) 15.80 15.80 Slurry Yield (cf/sack) 1.15 1.16 Amount of Mix Water (gps) 4.92 4.93 Amount of Mix Fluid (gps) 4.93 4.94 PLUG GEOMETRY PLUG PLUG TOP BOTTOM 1 2650 ft to 2838 ft with 9.95 inch ID Casing PDSqT=94° F PDST= 109.142° F 2838 ft to 3238 ft with 9.875 inch Open Hole PDSqT=94° F PDST= 109.142° F 2 209 ft to 369 ft with 9.95 inch ID Casing PDSqT=80° F PDST=83.321 ° F Slurry additives are subject to change based on actual well conditions and availability. Load 80 lbs of Calcium Chloride for Plug 2 on the side. (80 lbs of Calcium Chloride will be needed for 10 bbls of mix water.) Report Printed on September 25 20142'.43 PM Page 2 Gr4131 Have more questions? You can find us at:http://www.bakerhughes.com/products-and-services/pressure-pumping i i Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent: Saturday, September 27,2014 2:09 PM To: 'Spartan-Rig 151' Cc: 'Grimaldi, Louis R(DOA)'; Bob Laule(b.laule@furiealaska.com) Subject: RE: KLU#5 Cement Plug (PTD 214-072) Michael, Approval granted to modify sundry as proposed below. ...As there are no USDW (freshwater) for offshore we can forgo have the cement across the surface casing shoe. This well will be adequately isolated with retainer and cement plug on top. ( see 20 AAC 25.112 (c)(3)(A)) Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guv.schwartz@alaska.gov). From: Spartan-Rig 151 [mailto:spartan-rig@furiealaska.com] Sent: Saturday, September 27, 2014 11:47 AM To: Schwartz, Guy L(DOA) Subject: KLU#5 Cement Plug As discussed plan forward is to pump in a 300 foot cement plug(28.86 bbls.)on top of retainer set at 2750'.Pressure test to 1500 psi to follow. Best Regards, Michael Kistner Rig Clerk FUME Rig Cell:907-690-3260 1 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Thursday, September 25, 2014 8:14 PM To: Bob Laule Cc: Spartan 151;james pritchard; David McCraine;John Stuart;Jerry Cloud Subject: Re: Furie Operating Alaska request for verbal approval of abandonment plan for well KLU5 pi.. 0 71...- Bob, �Bob, Verbal approval granted for P&A as proposed. OH section below surface casing had no significant hydrocarbon shows. Submit 10-403 Friday to our office. Guy Schwartz AOGCC Sent from my iPhone >On Sep 25, 2014,at 6:16 PM,"Bob Laule"<b.laule@furiealaska.com>wrote: >Furie operating Alaska is requesting verbal approval to proceed with the abandonment plan as out line below. Formal 10-403 will be submitted Friday 9-26-14. >Thanks for your consideration > Bob >POH and LD drilling assembly. >Install test plug and Test one set of rams against the Drill pipe. Pull test plug. >PU 10-3/4 EZSV and set at 2750' MD RKB.( 10-3/4"shoe at 2840'.)Set >down with 10K to confirm EZSV placement. Placement to be witnessed by AOGCC inspector. >RU Cementers.Test lines to 3500 psi. >Sting into retainer and establish injection rate and pressure. Unsting from retainer. >Mix and pump minimum of 490'of plug.222sacks class G 15.8 ppt cement >Displace cement to within 15 bbl of displacement.Sting into retainer and squeeze 400 linear ft 180 sks under retainer. >PU and spot a balanced plug of 90 linear ft of cement 42 sks. >Pull out of cement retainer. > PT casing to 1500 psi for 30 minutes and record on chart recorder. POH. >PU 10-3/4"EZSV bridge plug. >RIH and set at 364' (185' BML). >Set down with 10K to confirm placement. >Spot 75 sks balanced plug from 364 to 209'.(30' BML)CBU. >POH >ND BOP >Cut off 10-3/4"slip lock well head. >PU 10-3/4"casing cutter assy and RIH . >Cut 10-3/4"casing at 199' (20' BML)Accurately tally casing for >verification of depth of cut for AOGCC LD cutting assembly. >LD 10-3/4'casing 1 • >PU 30"casing cutter and cut casing at 194'( 15' BML) LD casing >cutter. >ID 30"casing.Accurately tally casing for verification of depth of cut for AOGCC. >RD Rig. 2 • • Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent: Friday, September 26,2014 3:53 PM To: 'Bob Laule';John Stuart;Spartan 151; David McCraine;Tony Cosenza;fames pritchard Subject: RE: KLU5 side scan Bob, The next time you mobilize the sidescan equipment for another drill location would be preferred. I think if we wait too long for clearance it will be forgotten. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz©alaska.gov). From: Bob Laule [mailto:b.laule@furiealaska.com] Sent: Friday, September 26, 2014 3:37 PM To: John Stuart; Spartan 151; David McCraine; Tony Cosenza;fames pritchard Cc: Schwartz, Guy L(DOA) Subject: KLU5 side scan John I contacted Guy Schwartz with AOGCC and made him aware that we left a joint of 13-3/8 pipe with submersible pump on the sea bed.I referenced its loss on DDR 35 dated 8-20-14.He didn't see it necessary to side scan or recover the debris at this time.We will make sure Jim Regg is aware of it the first of next week to confirm Jim is OK with its recovery in the distant future(before termination of the lease agreement). Bob S Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Thursday, September 25, 2014 1:43 PM To: 'Bob Laule' Cc: Spartan 151;james pritchard;John Stuart; David McCraine; DOA AOGCC Prudhoe Bay Subject: RE: BOP Test waiver request for Furie Operating Bob, Full BOP test waived ... after you POOH and prepare to place P &A cement plugs test one set of rams only against drillpipe. We still need to finalize the bottom plug placement but obviously need to see the OH logs when they become available. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Bob Laule [mailto:b.laule@furiealaska.com] Sent:Thursday, September 25, 2014 11:31 AM To: Schwartz, Guy L(DOA) Cc: Spartan 151;james pritchard;John Stuart; David McCraine Subject: BOP Test waiver request for Furie Operating Furie Operating is currently drilling ahead on well KLU5 at 11650' @11:00 hrs 9- 25-14. TD is planned at top of the Tyonek currently anticipated at 11,800- 12,000'. We are anticipated TD of the well today, at which time abandonment operation most likely will commence. We have a required BOP test scheduled to begin before 24:00 hours 9-26-14. Furie Operating Alaska is requesting a waiver from testing the BOP and be allowed to proceed immediately to abandoning the well. Thanks for your consideration. Bob • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg I2i23/ i- DATE: September 29, 2014 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Wellbore Plug Verification Petroleum Inspector KLU #5 Furie Operating Alaska LLC PTD #2140720 Saturday, September 27, 2014: I witnessed the settings of two abandonment plugs in the Furie Operating exploratory well KLU #5. Note: All depths are referenced to R.K.B. with an elevation of 179 ft to Mud Line. ' I arrived to find the rig crew on depth with the bottom H.E.S. 10 3/4" EZSV packer. Setting of this packer at 2747 ft (shoe depth 2840 ft) was straightforward and once accomplished was retagged with 15-20K lbs down finding it at the correct depth and solid. An injectivity test was ran which showed no injectivity available at a 14.6 ppg E.M.W. which was above the F.I.T. performed prior to drillout. After speaking with AOGCC engineer, Guy Schwartz a verbal approval to "lay in" a 300-foot lineal (minimum) cement plug on top of the retainer was obtained. A 30 bbl batch of 15.8 ppg class G cement was mixed, pumped and balanced at the top of the EZSV. Upon breaking down the cementing head no flowback was observed at the stump or at the flowline indicating plug staying in place. The rig wanted to "come out sideways" which I agreed to as long as the drillpipe stayed onboard for m count to verifydepth. This was accomplished and depth was as Y reported. The second H.E.S. 10 3/4" EZSV packer was picked up, ran and set on drillpipe at a depth of 366 ft. Sunday, September 28, 2014: The drillpipe/running tool was picked up above the cement was mixed and started being - of 15.8 class G packer and a 15 bbl batchppg pumped. Difficulties encountered during the pump job caused the cement job to be aborted. The drillpipe and casing were circulated out and a new batch of equal properties was mixed and pumped without incident. The drillpipe and flow line were static when the headpin was broken off indicating a good balanced plug job. The drillpipe was picked up to 209 ft and circulated out, no signs of cement were reported. - The rig will prep to pull casing and I asked they wait until proper thickening time for pulling the Conductor which should be plenty of time. They will hold the numbered and measured casing sections at Tuboscope in Nikiski for our inspection if required. Attachments: None Non-Confidential 2014-0928_Plug_Verification_KLU-5_1g.docx Page 1 of 1 • • • Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Thursday, September 25, 2014 8:14 PM To: Bob Laule Cc: Spartan 151;james pritchard; David McCraine;John Stuart;Jerry Cloud Subject: Re: Furie Operating Alaska request for verbal approval of abandonment plan for well KLU5 Bob, Verbal approval granted for P&A as proposed. OH section below surface casing had no significant hydrocarbon shows. Submit 10-403 Friday to our office. Guy Schwartz AOGCC Sent from my iPhone >On Sep 25, 2014,at 6:16 PM, "Bob Laule" <b.laule@furiealaska.com>wrote: > Furie operating Alaska is requesting verbal approval to proceed with the abandonment plan as out line below. Formal 10-403 will be submitted Friday 9-26-14. >Thanks for your consideration > Bob >POH and LD drilling assembly. > Install test plug and Test one set of rams against the Drill pipe. Pull test plug. > PU 10-3/4 EZSV and set at 2750' MD RKB. ( 10-3/4" shoe at 2840'.) Set >down with 10K to confirm EZSV placement. Placement to be witnessed by AOGCC inspector. > RU Cementers.Test lines to 3500 psi. >Sting into retainer and establish injection rate and pressure. Unsting from retainer. > Mix and pump minimum of 490'of plug. 222sacks class G 15.8 ppt cement > Displace cement to within 15 bbl of displacement. Sting into retainer and squeeze 400 linear ft 180 sks under retainer. > PU and spot a balanced plug of 90 linear ft of cement 42 sks. > Pull out of cement retainer. > PT casing to 1500 psi for 30 minutes and record on chart recorder. POH. > PU 10-3/4" EZSV bridge plug. > RIH and set at 364' (185' BML). >Set down with 10K to confirm placement. >Spot 75 sks balanced plug from 364 to 209'.(30' BML)CBU. > POH > ND BOP >Cut off 10-3/4" slip lock well head. > PU 10-3/4" casing cutter assy and RIH . >Cut 10-3/4"casing at 199' (20' BML)Accurately tally casing for >verification of depth of cut for AOGCC LD cutting assembly. > LD 10-3/4' casing 1 •) ' • • >PU 30"casing cutter and cut casing at 194'( 15' BML) LD casing >cutter. >LD 30"casing.Accurately tally casing for verification of depth of cut for AOGCC. >RD Rig. 2 S Schwartz, Guy L (DOA) From: Bob Laule <b.laule@furiealaska.com> Sent: Thursday, September 18, 2014 2:46 PM To: Schwartz,Guy L(DOA) Cc: Spartan 151;John Stuart;fames pritchard; David McCraine;Tony Cosenza;Jerry Cloud Subject: Re: Furie Choke manifold redundant valve#1. Kt-14 lcs' prb Zp-i`— 0-77-- Guy, 7Guy, Furie wants to be 100%compliant with AOGCC requirements.Therefore, I wanted to clarify that we have a replacement valve available but since this valve is redundant;and we have 7000'of hole open,FOA's preference would be to leave the existing valve in place(Locked out and Tagged out)and replace it with a spool piece during the winter layup. With your concurrence we would like to proceed with this plan? Thanks for you consideration. Bob From:Guy Schwartz<guy.schwartz@alaska.gov> Date:Thursday,September 18,2014 at 10:17 AM To:Admin<b.laule@furiealaska.com>,Jim Regg<jim.regg@ialaska.gov> Cc:Spartan 151<spartan-rig@furiealaska.com>,John Stuart<i.stuart@furiealaska.com>, David McCraine <d.mccraine@furiealaska.com> Subject:RE: Furie request for a time extension for BOP test due 9-18-14 Bob, As per our phone call the redundant valve#1 should be replaced as soon as possible with either a new valve or spool piece as soon as practical. The BOP test upcoming shortly(pulling pipe for bit change)should note in remarks section that replacement for valve#1 is on order. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226)or(Guyschwartz(aalaska.gov). From: Bob Laule [mailto:b.laule@furiealaska.com] Sent: Wednesday, September 17, 2014 11:33 AM To: Schwartz, Guy L(DOA); Regg, James B(DOA) Cc: Spartan 151; John Stuart; David McCraine Subject: Furie request for a time extension for BOP test due 9-18-14 GUY/ Jim i S Furie Operating is currently drilling ahead on well KLU5 at 9,742' @11:00 hrs 9- 17-14. TD is planned at top of the Tyonek currently anticipated at 11,800'. We are anticipated TD of the well by 9-21, at which time abandonment operation most likely will commence. We have a required BOP test scheduled to begin before 24:00 hours 9-18. Furie Operating Alaska is requesting a extension to allow TD of the well prior to testing the BOP's. Additionally if the Furie plan remains to commence abandonment without any additional evaluation log is a additional BOP test necessary? If a BOP test is required we would request a waiver to the repair/replacement requirement of Valve #1 (as identified in the remarks section of the BOP Test Report for the Spartan 151 dated 9-11-14 9 attached) as the valve is redundant to the manifold as noted by Lou Grimaldi. Thanks for your consideration Bob 2 i 5 �'E, i ' 1 .,:1. 0: .. ,t 1 "; i 1� ," �, ,Iii...i „ ,,,�� ri. spa i„. t t 'i '', V, , i 4 4 , ..,.,. „,, , .,. .,,.,,.,, . .:.,-.,..,..,-4*-0i.,. ...., . . ,,- ,r.,* 1 .,,,44,,, . ',.`-'-'10ik.."..''.:i!:,.',:,..,;',':'.' ,, ,-.; j ,,,, '''''''14,-, 1411", . ,,,,... ...i.jimpliiiiim , 414‘ , , ,,,,,:ji 'z,, ,, , .Alie,4-..,."...,4 X----;.-- ''''''' i ' 1 ..,.-- -,.. !..,- '`-': ' . .,.,....-.4',, -,,olt.'',1''..-•..-.„ 1'.i 1'1 .111,' ) ' ''' -1 ' '. . 4 ,. ..„.. .1, 11j1 -- ,,. - ''t N tk:- - Irk ,,,,..... -. ' At. .0 k . , . 'Ilk 40 :x �(. • 0 4, ' . 'I N.. ,,. 111 a '- yxrc s•, v tr r. TjY{ d t t ' , i t ! S ItiiiI 7,....iiiiinsik ,,,,,., ' ,, . ,,, , F ... 5 -.,4,.., s =t . w t ..„,,,, 4.. it 'iril.N , ,. rc !Fri' , . ,...,-.. 1,..,v,,,i,t 1 ,. ,* 7 '°'k*4 4 4 4 441.4 .;,,,,,',,,..41„,,,,„,,,,,.,,.., lbw. ' , ,..- -:::'''''' '4411"'"' 4. ": -lkilr'2,11•.,-,,,,,I, ............. .. al �2 ,. x+. � , : ,.. " - , rya oy • • Preliminary Draft 9/19/14- KLU# 5 P&A Procedure R2 KITCHEN LIGHTS UNIT# 5 COOK INLET ALASKA PERMIT# 214720 API- 50-733-20632-00-00 PLUGGING PROCEDURE September 24, 2014 RKB - MLLW= 109' RKB- mudline= 179' MLLW Depth= 70'S Mud Weight; 12.0 ppg Total Depth: 12,000' Sterling @ 5148' RKB Beluga @??? Tyonek @??/ 10 3/4"45.53 N80&K55 casing @ 2838' 30"x 1 1/2"wt @ 331' 1. Pick up 2 7/8" cement diverter, 27 joints (±837') OF 2 7/8" 6.5# N-80 EUE 8 RD tubing, 2 7/8" 8 rd x 4 1" IF crossover, 5" drill pipe to surface. 2. GIH to 12000' or±100'below open hole show. 3. CBU. Rig up cement lines to spot an open hole plug. Test lines to 3500 psi. 4. Mix and pump balanced plug as follows: *sack Class G + .005 lb/sk Static Free + 0.7 % BWOC FL-63 + 0.3% BWOC CD-32 + 1 gal/100 sack FP-6L+ 0.1 % BWOC ASA-301 + 0.4% BWOC R-3 Weight- 15.8 ppg Yield- 1.15 cubic ft/ sack Water-4.913 gal/sack -FRESH Total Mix Fluid 5.013 gal/sack Pump time 4:35 *Open hole plugs are only if shows are present. Volumes to be determined once log is run. Spot 350' balanced plug from 12,000'- 11 ength to be determined by final logs) 6. RD cementer from drill pipe. PU to 10,500' and CBU. 7. WOC 8 hr from time CIP. 8. GIH to 11,650'and tag TOC. R • • 2 Preliminary Draft 9/19/14- KLU # 5 P&A Procedure R2 9. SP and POOH. 10.Set back 2750'of drill pipe and lay down remainder of drill pipe. 11.Set back 4 stands of tubing and L/down remainder. 12. PU 103/4"45.5 ppf EZSV drill pipe. 13.TIH with EZSV and set at 2750'. 14.Set±10,000 # down on EZSV to confirm set. ? AD G 15.Rig up cementer.Test lines to 3500 psi. r "-'E 'S 16.Test backside to 500 psi. 17.Perform LOT at 1/4 BPM in 1/4 bbl increments,do not perform shut-in. 18.Once pumping in @ 1/4 BPM increase rate and establish injection at 1 BPM, 2 BPM and 3 BPM. Send LOT to Anchorage and Lafayette offices. 19. Mix and pump 490'cement plug as follows: sack Class G + .005 lb/sk Static Free + 0.7% BWOC FL-63 + 0.3% BWOC CD-32 + 0.1% BWOC ASA 301+ 1 gal/100 sack FP-6L Weight- 15.8 ppg Yield- 1.15 cubic ft/sack Water-4.92 gal/sack - FRESH Total Mix Fluid-4.93 gal/sack Pump time 5:7 20. Displace to within 15 bbls of setting tool. 21. Sting into EZSV. 22.Squeeze sacks ( bbls)through EZSV. Base of cement @ with 100%WOF 23. PU and dump Al sacks ( bbls) on top of EZSV.TOC @ ". 24. PU 3 stands and CBU. 25. Rig up cementer and test casing to 1500 psi on chart for 30 minutes,per AOGCC 26.POOH. Set back"5" drill pipe 27. Lay down EZSV setting tool. 28.Lay down all tubulars not needed to set surface plug or cut casing. 29.PU 103A" 45.5# Cement retainer. 30.TIh and set @ 364' ( 185' BML). 31.Set down 10,000# and confirm set. 32.PUto369' . raa4cc 33.Spot 160 'balanced plug from 369'-209' ( 190' BML- 30' BML) as follows: ,tjESS 75 sack Class G + .005 lb/sk Static Free + 0.7 % BWOC FL-63 + 0.3% BWOC CD-32 + 1 gal/100 sack FP 6L+ 0.1 % BWOC ASA-301 Weight- 15.8 ppg Yield- 1.15 cubic ft/ sack • Preliminary Draft 9/19/14- KLU# 5 P&A Procedure R2 Water-4.13 gal/sack - FRESH Total Mix Fluid- 5.013 gal/sack Pumptime 5:27 as tested- Runningtest for CaCL addition.to mix water. Compressive Strengths: 50 psi in 7:09 hours 500 psi in 10:31hours 34. Pick up to 209', 30' BML and CBU. 35. POOH. 36.Cut wellhead off using torch. 37.PU 10 3/4" casing cutter,one stand of 6 34" collars and 5" heavy weight drill pipe. 38.GIH and cut 10 3/4" casing at 199' 20' BML. 39.POOH. Lay down casing cutter. 40.MU 10 3/4" spear and TIH and pull 103/4". 41. Cut 10 3A" casing laying down. 42.RD 10 3/" equipment. 43. PU 30" casing cutter, one stand of 6 3/4" collars and 5" heavy weight drill pipe. 44. GIh to 194', 15' BML. 45. Cut 30" casing. 46. POOH. 47.RU 30" casing tools and 30" strap tongs. 48.Pull 30",backing out Tencom connections and laying down 30". 49.RD 30" casing tools. 50.RIH and lay down remainder of collars and heavy weight. 51.RD drill floor and clean pits. 52.Skid in and prepare for demob. 53.Run bottom sonar. 54. Demob Spartan 151 to Port Graham. Re4g, James B (DOA) From: Leslie Smith <I.smith@furiealaska.com> Sent: Friday, September 05, 2014 2:15 PM To: Regg, James B (DOA); Bettis, Patricia K (DOA); Smith, Kyle S (DNR); Schwartz, Guy L (DOA) Subject: Drilling*** our first DDR, commenced yesterday at 3pm FOA DDR 50 Attachments: FOA DDR 50.pdf Here we go,you will now be seeing these daily :) 13e4i"regard* e,,? FURIE Furie Operating Alaska, LLC 1029 W. 3rd. Avenue, Suite 500 Anchorage, Alaska 99501 Office: 907.277.3726 Cell: 907.441.2388 Fax: 907.277.3796 Email: 1.smith@furiealaska.com 1 • • • ,oei , FuRIE DAILY DRILLING REPORT Report Date: September 4,2014 J SOO Report No: 50 Operating Aiasi<a LLC RIG I SPARTAN 151 Spud Date: September 4,2014 FIELD Kitchen Lights Unit WELL:I #5 AFE# 12014-004 PERMIT NO. I 214072 API NO. I 50-733-20632-00-00 DEPTH(md) 24 HR PROGRESS Daily Rot Hrs Avg ROP RKB-MLLW(per Survey) RKB-ML RKB-CHF 860 529 7.5 71 70 179 37.5 DEPTH(tvd) FURIE SUPERVISORS RIG SUPERVISORS DAILY COST CUMULATIVE COST AFE AMOUNT: 860 Frank Johnson/Dale Munger Bryan LaFleur I Matthew Leger DOL 48 DFS I 0.33 AFE DAYS 26.00 Last BOP test Next BOP test PRESENT OP:Drilling at 860'. 24 HR SUMMARY:Completed rig crew change,took on 1388 sxs of bulk barite,Displaced seawater,Drilled from 331'to 860'. 24 HR FORECAST:Continue drilling 13 1/2"hole from 860'. TIME LOG DETAILS OF OPERATIONS OPERATION TIME ANALYSIS FROM TO DAILY CUMMULATIVE 0000 Continue to monitor well,break circulation every 3 hours,and perform rig R/U,R/D MOBE 85.0 maintenance and clean up.Started pumping gray water to Sovereign,stopped DRILLING 7.5 7.5 0200 due to tide change.Performed H2S training on personnel while tide changed. CIRCULATE 2.0 4.0 0200 Pumped gray water to ISO tanks on Sovereign while receiving bulk barite and PU/LD BHA&tools 32.5 0430 offloading pallet spud mud chemicals from Sovereign. TRIPPING 1.5 0430 Building spud mud,continuing to receive bulk barite from Sovereign.Run wiring f/ WASH&REAM 0.5 17.5 1330 Baroid mud shack,calibrating mud logging equipment SURVEY 0.5 1.0 1330 1430 Displacing seawater with 9.Oppg spud mud RIG SERVICE 1430 1500 Washing out from 297'To 331'no fill RIG REPAIR 1500 2100 Drill from 331'to 755,424'@ 70 FPH.Survey at 321'=0.5 deg. SLIP&CUT DRLG LINE 2100 2200 Circulate at reduced pump rate while screening up to 70s on shaker due to high R/U&RUN CASING 18.0 • sand content. PRIMARY CEMENTING 2200 2300 Drill from 755'to 846',91'@ 91 FPH. N/U BOP,WH&TEST 36.5 2300 2330 Pump hi-viscosity sweep,survey at 817'=1.25 deg. WELL CONTROL 2330 2400 Drill from 846'to 860',16'@ 32 FPH. WIRE LINE/E-LOG SAFETY/JSA 0.5 WASH&DRLG CMT WINDOW MILLING FISHING OTHER 13.5 992.0 CLEAN MUD TANKS W/O Cement WIG FISHING TOOL's COMPLETION OPS. FLOW WELL Participate in Pre-Tour Safety Meetings: NPT/TROUBLE TIME 4.0 No Accidents,Incidents,or Spills. TOTALS 24.0 1200.0 MUD RECORD CASING RECORD FL TEMP IN OUT III Size Weight Grade Conan MD TVD Shoe Test EMW LOT YIN? PUMP NO. 1&2 3 TIME 30 457.00 X-65 Tencom 331.00 331.00 MAKE GD EMSCO DEPTH 860 10 3/4 MODEL PZ10 FB160 MUD WT. 9.1STROKE 10" 12" VIS 97 LINER SIZE 6.5" 8" PV IVP 26/40 SPM 88/88 GELS 17/29/36 GPM 735 API Filtrate 10.4 BPM 17.5 Hl Temp BOTTOM HOLE ASSEMBLY DRILLING GAS SUMMARY TORQUE B DRAG Cake 2 NO. DESCRIPTION BHA#2 AVG BG GAS 4 TORQUE 2000 Ft-lbs SOLIDS% 8.00 1 13 1/2"MXL-1X(NEW),6 5/8 reg 1.00 MAX BG GAS 369 PIU WT. K Lbs WTR/OIL 92.0 2 Bit sub w/BFF&crows foot,6 5/8 reg 3.70 AVG CONXN GAS 0/0 WT K Lbs PH 9.0 3 2-8"slick drill collars,6 5/8 reg 62.43 MAX CONXN GAS ROT WT K Lbs Pm 4 1-13-1/2"stabilizer,6 5/8 reg 7.09 AVG DRILL GAS DAILY DRILLING DATA Pf I Mt .1/1,75 5 1-8"slick drill collar,6 5/8 reg 30.14 MAX DRILL GAS DEPTH 860 Chlorides 1800 6 1-13-1/2"stabilizer,6 5/8 mg 7.05 AVG TRIP GAS FORM. sand/silt Calcium BO 7 3-8"slick drill collars,6 5/8 reg 90.68 MAX TRIP GAS FEET 529 Sand 2.5 8 x-over sub,6 5/8 reg pin x 4 1/2 IF box 2.85 BIT RECORD HRS 9 MBT 22.5 9 22-5"HWDP,41/2 IF conn 673.96 BIT NO. 2 1 ROP 11.9 LGS SIZE 131/2 171/2 GPM 750.0 HGS MFG. Hughes Hughes WOB 0-10 Lima MODEL MXL-1X MLX-1 RPM 75 ADDITNES SIN. 5232072 5225686 DP AV Sack Gel 280 3,780 JETS 3-18's-1-16 3-18's DC AV Barite TFA .95 .7455 SPR Caustic 8 384 TOTAL LENGTH: 878,90 OUT 331 PUMP NO. 1 2 Barzzan 14 2,573 ROTATING HOURS IN 331 173 SPM Pac L 21 3,224 24 HRS CUMMULATIVE SINCE LAST INSP FTG. 529 280 PRESS Dextrid 28 2,044 WELL 7.5 16 HOURS 7.5 GPM Baracarb 80 2,440 JARS AVG.ROP 70.5 #DIV/0! BPM Steelseal51 24 3,000 HWDP 7.5 16 woo 0-10 WEATHER Steelsean0 24 3,000 BHA 7.5 16 RPM 75 WIND 15-20 Barafiber 56 700 CASING GRADE SEAS 315 BOP CONFIG. MAKE MODEL SIZE TP CONDITION Rain Scale Chg ANNULAR Hydric asp 30" 1000 PERSONNEL TEMP 49 Trucking 5"PIPE RAMS CONTRACTOR 29 SUPPLIES Eng 2 2,200 BLIND RAMS OPERATOR 3 On Hand Used Tax MUD CROSS CATERING 5 FUEL 1,116 38 Mud Lab 1 70 5"PIPE RAMS SERVICE 13 POT WTR 735 44 DAILY 23,414 CSG SPOOL TOTAL POB 50 DRL WTR 561 790 COMM 34,940 OSHA MAN HOURS BARITE 1,388 Rig Office-504-620-8462 Company Man Cell-907.395-7546 I Rig Clerk Cell-907-690.3260 Galley-504-620-8458 OIM-504-620-8459 KLU 45 DDR 50 • 4111 ar an ` THE S'TAT'E A a c,2. 1,, 333 West Seventh Avenue GOVERNOR SEAN i ARNI I.L Anchorage, Alaska 99501 3572 Main: 907.279.1433 907.276.7 542 Robert Laule Drilling Engineer Furie Operating Alaska, LLC 1029 W. 3rd Ave., Ste. 500 Anchorage, AK 99501 Re: Exploratory Field, Exploratory Pool, KLU#5 Furie Operating Alaska, LLC Permit No: 214-072 Surface Location: 1101' FEL, 2112' FSL, Sec. 22, TO9N, R11W Bottomhole Location: 1101' FEL, 2112' FSL, Sec. 22, TO9N, R11W Dear Mr. Laule: Enclosed is the approved application for permit to drill the above referenced exploration well. All dry ditch sample sets submitted to the AOGCC must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Mud-logging equipment to be rigged up and operational from the base of the 30" x 1.5" (65) conductor drive pipe (-400' MD)to total depth. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the AOGCC's internal use. 111 Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathy P. oerster Chair DATED this day of June, 2014. 4 STATE OF ALASKA 0 S • MAY 2 0 ?04 PERMIT TO DRILL b 20 AAC 25.005 oh Is.Type o Work: `' Wi lb.Proposed Well Class: Development-Oil — Service- nj — Single Zone lc.Spec' : Drill FA Lateral Stratigraphic Test Development-Gas _ Service-Supply _ Multiple Zone r.,/' Coalbed Gas Gas Hydrates Redrill II Reentry L Exploratory ' Service- WAG _ Service-Disp �1 Geothermal Shale Gas e 2.Operator Name: 5. Bond: Blanket id Single Well U 11.Well Name and Number: Furie Operating Alaska LLC. ' Bond No. 402-081A ' KLU#5 • 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 1029 W Third Ave Suite 500,Anchorage Ak 99501 MD: 12,000' TVD 12,000' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Exploration• Surface: 1101 FEL,2112 FSL,Sec 22,TO9N,R11W ' ADL 389926• Top of Productive Horizon: 1101 FEL,2112 FSL,Sec 22,TO9N,R11 W 8.Land Use Permit: 13.Approximate Spud Date: NA June 15th 2014 Total Depth: 1101 FEL,2112 FSL,Sec 22,TO9N,R11 W • 9.Acres in Property: S 7(o 0 4'/ 14.Distance to Nearest Property: Lease=2544 2.5+miles 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elevation above MS 113 feet 15.Distance to Nearest Well Open Surface: x- 286441 y- 2506411 Zone- 4 . GL Elevation above MS -69 feet to Same Pool: None 16.Deviated wells: Kickoff depth:NA feet 17.Maximum"•-•'-`gated Pressures in psig(see 20 AAC 25 nag' i(/Y NA Maximum Hole Angle: degrees Downhole:‘.SSurface:'i psi si 3Z54•F71- 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks 1 Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stag ata) 30" 1.5"wall X65 400 0 0 400 400 Driven ( St,-,..1-,- - 13-1/2" 10-3/4'"' 45.5# K55 BTC 2900 0 0 2900 2900 2829 cuft 12.5 ppg class G cement lead 313 cuft 15.8 ppg class G tail Pi.B]')-- —slf a'Z`lcu z,iao /Lo�)G Izoc+-, c 1 �e.ck;on. 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth ND(ft): Plugs(measured): Effect.Depth MD(ft): Effect.Depth ND(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth ND(ft): 20. Attachments: Property Plat U BOP Sketc ing Program Time v.Depth Plot Shallow Hazard DiverterysiH Sketc 1 Dr Seabed Report Drilling Fluid Program 20 MC 2 5.050 r quiremlent 21. Verbal Approval: Commission Representative: Date 6/7/13 22. I hereby certify that the foregoing is true and correct. Contact Bob Laule b.laulelg7.furiealaska.com Email Printed Name Robert Laule Title Drilling Engineer Signature /361' ----/ Z'''‘ Phone 907-277-3726 Date 5/20/14 Commission Use Only Permit to DrillAPI Number: Permit Approval See cover letter for other Number: a 11/`� 7 2, 50- ?3- ,0(03Q-i00- 00 Date: �� $ )' requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce co bed methane,gas hydrates,or gas contained in sh es: Other: -:l`'3500 i Sc- /gal' -7----5 f''ckSamples req'd: Yes No_ Mud log req'd:Y N r� P l�c" � c -i�.Y H2S measures: Yes No Directional svy req'd:Y N �� rZ Z "i'' Z ;v 3/5 t%hl��� Spacing exception req'd: Yes No Inclination-only svy req'd:Y N rte_ 7v Q 0 w�,t�,,. /2.-t.. ze 44--e- z , 0 3o(4(2)(a) aitoC1-c.4, c7' APPROVED BY Approved byakf. /' COMMISSIONER THE COMMISSION Date:6p 7g--!/ 4 2 7e, ,.„.pi Submit Form and Form 10-401(Revised 10/2012) This permit is valid for 4 m nths from the date of approval(20 AAC 25.005(g)) Attachments in Duplicate ORIGINAL 7 • • e,„„, FURIE RECEIVE Operating Alaska LLC MAY 2 0 2014 AOGCC May 20, 2014 Alaska Oil & Gas Conservation Commission 333 W. 7th Ave. , Suite. 100 Anchorage, Alaska 99501 Re: Application for Permit to Drill Well: Kitchen Lights Unit #5 TO WHOM IT MAY CONCERN: Furie Operating Alaska, LLC (FOA) hereby applies for a Permit to Drill an offshore exploration well within its Kitchen Lights Unit located in the Cook Inlet of Alaska. FOA would like to request a waiver from 20 AAC 25.030 (c) , (B) To eliminate the conductor casing and request permission to set the Surface casing at 2700'TVDSS 2900'TVD BKB. The proposed justifications include: 1) Wells KLU# 1 thru 4, SRS State#1&2, SCI#2 & 3 none of which exhibited any shallow gas issues were all drilled without a conductor. In both cases with the structural casing or conductor casing a diverter system is utilized hence, from a well control perspective the installation of the conductor provides no additional well control over the structural casing with a diverter and with no potable water sources to protect there is no benefit provided by an additional string of casing. 2) The deeper setting depths is requested based on the shallow hazard survey conducted by Watson Co. dated April 2014 and submitted to AOGCC on 5- 2-14 which show no indication of shallow gas hazard above 3000' . The geological formation top prognosis (attached) shows significant formation dipping to the South West of the KLU#1 discovery well. 3) Historical evidence from wells KLU# 1 thru 4, SRS State#1&2, SCI#2 & 3 none of which exhibited any shallow gas issue. The approved setting depth for the surface casing has ranged from 1503' on SRS#2 to 2718' on SRS#1 (closest offset to KLU#1) . The setting depth for KLU#1-3 was based on reprocessed historical shallow hazard survey data and was restricted to 1900' for the sake of conservatism. KLU#5 shallow survey date is current and has shown no indication of shallow gas hazard above 3000' . FOA would like to request a wa). er from 20 AAC 25.035(c) (1) (A) requirement for a 16" diverter line. FOA requests permission to use a diverter with two 12" lines, which will open simultaneously while drilling a 13.5" surface hole to a depth of 2700'TVDSS 2900' TVD BKB. 1029 W.3RD AVENUE, SUITE 500, ANCHORAGE, ALASKA 99501 I OFFICE:907.277.3726 1 • The proposed justifications include: 1) Numerous past practices in the Inlet of using a dual 12" diverter lines on a 17.5" pilot hole i.e Buccaneer at Cosmo. 2) No shallow gas issues associated with offset wells KLU#1, KLU#2-2a, KLU# 3, KLU#4, Shell SRS 1&2 , or Arco South Cook Inlet #3. 3) The facility constraints of the rig layout. The Kitchen Lights Unit Well KLU#5 will be drilled from the jack-up rig Spartan 151. Well KLU#5 is anticipated to be spud approximately 7-14-14. The well will be plugged and abandoned after confirmation that the Tyonek formation has been reached. Attached please find the following information required by 20 AAC 25.005 for your review. 1) Form 10-401 Application for Permit to Drill 2) Well Prognosis: a. Anticipated Formation Tops b. MASP while drilling to TD with 13-5/8" 10M BOP, c. Drilling Hazards d. Drilling Fluid Plan e. Survey Plan f. Logging Plan g. Mud Logging Plan h. Casing Plan i. Cementing Plan j. Well Control Equipment 3) Plat showing the surface location 4) Well bore Diagram 5) Drilling Program 6) Depth Days Plot 7) Geo Mechanical Plot 8) Geological Formation Top Prognosis 9) Projected Disposal Volumes 10) Casing Design Information 11) Kick Tolerance 1029 W.3RD AVENUE, SUITE 500, ANCHORAGE, ALASKA 99501 I OFFICE:907.277.3726 2 • • 12) FIT Procedure 13) Diagrams: a. 21-1/4" 2000 psi diverter with 2 12" diverter line b. 13-5/8" 10M BOP diagram c. 15M Choke / Kill/ HP diagram d. 15M Choke/Kill/ Manifold e. Pit diagram f. Shaker tank diagram g. Well head system diagram 14) High-Resolution Geo-hazard Site Clearance by Watson dated: May 2014 (submitted under separate cover on 5-2-14) . 15) Draft KLU #5 Drilling Procedure If you have any questions or require further information please contact Furie Drilling Engineer, Mr. Bob Laule, at (907) 277-3726. Sincerely, ;-1, 1/1"- Bob Laule Furie Operating Alaska, LLC Drilling Engineer 1029 W.3RD AVENUE, SUITE 500, ANCHORAGE, ALASKA 99501 I OFFICE:907.277.3726 3 410 • A•07 FURIE Operating Alaska LLC Permit to Drill Kitchen Lights Unit Well #5 Table of Contents Description Page Permit To Drill 1 Well Prognosis 2 Surface Plat 6 Well Bore Diagram 7 Drilling Program 8 Depth/Days Plot 11 Geo-Mechanical Plot 12 Formation Top Section Map 13 Mud and Cuttings Discharge Table 14 Casing Design Factors 15 Kick Tolerance Worksheet 16 Formation Integrity Test Procedure 17 21-1/4 " Diverter Diagram 18 13-5/8" 10M BOP Diagram 19 13-5/8" 10M BOP& Manifolds 20 15M Choke Manifold 21 Mud Pit Capacity Chart 22 Shaker Tank Volume 23 Well Head Diagram 24 **High-Resolution Geohazard Site Clearance Dated April 2014 Submitted 5-2-14 Under Separate Cover • • e-? FURIE Operating Alaska LLC Well Prognosis for KLU#5: Kitchen Lights Unit Well #5 is an exploration well proposed by Furie Operating Alaska, LLC. The planned objective is to drill a well to explore for oil and gas in its Kitchen Lights Unit Prospect located in the Cook Inlet, Alaska. Using the offshore jack-up vessel, Spartan 151, the proposed well KLU#5 will be a vertical well drilled to approximately 12,000 ft. penetrating the Sterling, Beluga, and confirming the presents of the Tyonek formation. Surface Location: 1101 FEL, 2112 FSL, Sec 22,TO9N, R11W Bottom Location: 1101 FEL, 2112 FSL, Sec 22,TO9N, R11W Planned TD 12,000 TVD, 12,000 'MD.' a.) Formation Depths: Geological Data: From Shell SRS State#1&Arco SCI-3,KLU#1,2,3,&4 Formation Formation Tops (TVD RT) MD RT Potential Sterling 5,248 5,248' Gas Beluga 7,588' 7,588' Gas Tyonek 11,688' 11,688' Gas Property Lease: ADL 389926, Furie Operating Alaska, LLC has 100%ownership. b.) Maximum anticipated surface pressure: MASP 13-5/8" 10M BOP Reservoir pressure at TD less gas gradient in 2/3 of well bore andpug gradient in 1/3 of the well bore . (per meeting with AOGCC 6-9-14 Guy Schwartz) s, / c tip-1, (10.5 ppg * .052 * 12,000')—(8,000'X .1 psi/ft)—(4(a90'* 12ppg) = 6552psi -800psi—2496 psi= (3256 psiMASP SP c.) Potential Drilling Hazards: A review of the drilling records for the nearest offset well identified the follow: KLU#4 KLU4 while driving the 30" X 1.5" X56 to 318' pipe hit refusal at 257' with 197 blows / ft. A pilot hole was drilled to 317' and which allowed driving to continue to 318'. While drilling the 12-1/4" pilot hole, losses as high as 40 bph between 1080' and 1651' were encountered but 30 bbl pills with 15#/bbl fiber were effective in controlling the loss. The pilot hole was opened to 26" with losses from 491'-728', 1260-1340' and 1605'— 1845' 30 bbl pills 20#/bbl med fiber,15 #/bbl Caco3 were effective in controlling the losses. At 2396' the 20" casing shoe was set. After drillout a LOT 2 • FURIE Operating Alaska LLC of 14.3 ppg EMW was achieved. With a KOP at 2700' an inclination to 24 degrees was achieved and the well was directionally drilled to 9200' TD. At 6282' a loss of 105 bbls. occurred which required a 20 bbl pill 16#/bbl to cure.The well had to be backreamed 6165-3616' prior to drilling to 7818. Drilling ahead required backreaming each stand. The bit trip from 7818' required backreaming out and wash back into the hole. The second bit trip from 7818 was made on the elevators as well as the rip from 9200 TD. E line logging was attempted but became stuck and had to strip over to recover. Pipe convey logs were run without incident. A 13-5/8" casing string was ran and cemented. The mechanical DV didn't open during the second phase of cement job as the dart didn't reach tool due to 24 degree angle. A down squeeze of the 20" X 13-5/8" annulus was required. KLU#3 was drilled to 10,393' with no drilling issues in the 17-1/2" or 9-7/8" hole. Review of the most recent experience drilling of the 12-1/4" hole for the KLU2 & 2a found that lost circulation was experienced at 3179' with a loss rate of 120 bph but was cured with two 3Oppb LCM pills. While on KLU#1 , coal sloughing caused stuck pipe incidents at 10,248', 10,570' & 10,625'. Back reaming,washing and reaming, successfully cleaned the hole. Additional mud weight was used to stabilize hole prior to running 9-7/8" casing. Shell SRS State#1 identified a fluid loss of 580 bbl fluid at 625' no remedial action was taken, a gas influx at 6,260' requiring a bump in MW from 10.5 ppg — 10.7 ppg. Fluid losses were seen in the interval from 7,243' to 8,941'. The loss volumes varied from 75 bbl to 200 bbl and assumed to be self-healing as there were no reports of the use of LCM. Additional gas cut mud was encountered at 13,370', which required a bump in mud wt from 11.0 ppg to 11.4 ppg. At 13,814' again had gas cut mud and bumped wt to 12.2 ppg. After setting 7" casing at 13,341', the well was drilled and cored to 13,859' with a final mud weight of 16.0 ppg. During the subsequent re-entry the well was drilled to 16,375' with 16.7 ppg without incident. Although no mud density was noted in the summary well records,the Schlumberger DIL log dated 5-28-65 reports a mud weight of 16.7 ppg. Shell SRS State #2 was drilled to 15,403'. Gas cut mud was encountered at 14,386' requiring increasing the mud weight from 11.4 ppg to 12.0 ppg and again at 14,988' where the mud weight was raised from 14.9 ppg to 15.9 ppg. Stuck pipe incident occurred at 14,242 and 15,094'. The pipe was successfully worked free in both cases. Arco South Cook Inlet #2 was drilled to 15,059' without incident. While drilling to TD at 15,189' gas cut mud required weighting up mud in stages to 15.4 ppg. While attempting to log the well from TD, it began flowing, which required the well to be killed with 15.8 ppg. The 15.8 ppg was maintained during the successful running and cementing of the 7" casing. Arc.a_So thCook Inlet #3_was drilled to 13,000' without incident. Sloughing coal at 13,000' required a bump in mud weight from 11.6 ppg to 12.0 ppg. A planned wt increase to 14.8 ppg was made at 13,875' in preparation for drilling the West Forelands formation. A 7" liner was successfully ran and cemented in 14.9 ppg mud to 14,320'. The well was drilled to 15,643' with 3 • ! f- FURIE Operating Alaska LLC 16.7 ppg. At 15,643' the mud weight was reduced to 16.5 ppg due to mud loss to the formation for a total of 241 bbls. A 45 bbl LCM pill was spotted. Post BOP testing the well was drilled ahead to TD at 16,000' without problems. The 16.5 ppg was maintained during the running and cementing of the 5" casing. Currently, there are no indications that any of the offsetting wells encountered any detectable levels of hydrogen sulfide. KLU#5's geological strata are the same as those of its offset wells. H2S is not expected to be encountered in this well. However, the rig and mud-logging unit will have functioning H2S detectors. In conclusion, a review of the drilling operations on the offset wells didn't identify any abnormal hazards that any prudent operator couldn't manage with accepted standard drilling practices. d. rillin Fluid Summary: Surface Hole 13-1/2"will be drilled 2,700 TVDSS 2,900'TVD BKB Gel Spud Mud 9.0 ppg. The 9-7/8" surface hole will be drilled to 12,000' MD with 12.0 ppg (glycol/ KCL/amine inhibited) mud. e.) Survey Program: This is a vertical hole. Surveys of inclination will be made every 500' in compliance with regulation 20 ACC25.050 f.) Logging Program: 13-1/2" GR/Res/ Neutron Density (Triple combo) 9-7/8" Intermediate/Production LWD Neutron—Density—Resistivity-GR; E Line-Triple Combo (GR/Res/ Neutron Density), Optional FMI Sonic (dipole), CMR,XPT& Rotary SWC's g.) Mud Logging: Two surface loggers alternately on duty A complete set of washed and dried, legibly identified samples of all drill cuttings, as caught by the operator in accordance with good geological practices, consisting of a minimum of one-quarter cup in volume or three ounces in weight of cuttings for,each sample interval; 4 f ? FURIE Operating Alaska LLC h.) Planned Casing Program for KLU#4 30" 10-3/4" Open hole Depth 400' 2,900' 12,000' Hole Size Driven 13-1/2" 9-7/8" Weight ppf 1.5" wall 45.5# Grade X65 K-55 Connection Tencom BT&C NA i.) Cementing Summary: 30" 1.5" wall (27" ID) Drive pipe Driven to 400' no cement 10-3/4"45.5#/ft set at 2,900' and BKB o 386' X 3.3458 cf/ft with 0%excess = 1291.5 cf o 2114' X .3637 ct/ft with 100%excess = 1537.7 cf o 400' X 0.3637 cf/ft with 100%excess = 291.2 cf o 40' X 0.5400 cf/ft with 0%excess = 21.6 cf Total = 3114.9 cf = 555 bbl Lead Slurry 2,829 cu-ft 12.5 ppg,yield 2.08 cf/sk -2;4. Tail Slurry 313 cu-ft 15.8 ppg,yield 1.15 cf/sk j.) Well Control Equipment: 21-1/4" 2M Diverter with two 12" diverter lines. 13-5/8" 5M annular& 10 M BOP three ram 5 • • FURIE Operating Alaska LLC Furie KLU#5 Casing Design Lease holder Rev1 Calculation based on the Energy Resource Conservation Board Alternative Design Method 6/9/2014 Collapse Burst Burst Conn. / Tensile Tensile Conn SF Collapse SF Burst SF Tension 10-3/4"45.5#K55 BTC 2090 3580 3580 715 715 1.54 1.10 6.27 "c"designation on rating indicates connection limited. 10-3/4"45,5#K55 BT&C Casing Collapse pressure based on mud dendity at casing 10-3/4 45.5#K55 BTC Collapse Rating 2090 Calculated Collapse Pressure=(9.0 ppg*2900'*.052)= 1357 Collapse SF 1.54 Calculated Burst Reservoir pressure at TD less gas gradient in 2/3 of well bore and mug gradient in 1/3 of the well bore.(per meeting with AOGCC 6-9-14 Guy Schwartz) (10.5 ppg *.052*12,000')—(8,000'X.1 psi/ft)—(4000'*.052*12ppg)= 3580 6552psi -800psi—2496 psi= 3256 psi MASP 3256 Burst SF MASP —" 1.10 3256 Tensile Strength SF Calculation 10-3/4 45.5#K55 BTC Tensile= 715 K Pipe area 10-3/4 45.5# 10.75"OD x 9.95."I0= 13.00 sq in Bouyed 13 sq in*9.0*2900*.052= 17,643(+) Air Wt(45.5*2900)= 131950(-) Tensile SF Net Hanging Wt. 114,307(-) 6.27 Page 15 T • • (" ? FURIE Operating Alaska LLC Well Prognosis for KLU#5: Kitchen Lights Unit Well #5 is an exploration well proposed by Furie Ope .ting Alaska, LLC. The planned objective is to drill a well to explore for oil and gas in its Kitchen Light nit Prospect located in the Cook Inlet, Alaska. Using the offshore jack-up vessel, Spartan 151, the p 'posed well KLU#5 will be a vertical well drilled to approximately 12,000 ft./penetrating the Sterling, :eluga, and confirming the presents of the Tyonek formation. Surface Location: 1101 FEL, 2112 FSL,Sec 22,T09N, R11W Bottom Location: 1101 FEL, 2112 FSL, Sec 22,T09N, R1 ,0 tipz.4 Planned TD 12,000 TVD, 12,000'MD.' y � a.) Formation Depths: Geological Data: From Shell SRS State# : Arco SCI-3,KLU#1,2,3,&4 ; Formation Formation T.is TVD RT MD RT Potential Sterling 5,2, 5,248' Gas Beluga 7,:88' 7,588' Gas Tyonek 1 ,688' 11,688' Gas Property Lease: ADL 389926, Furie 'a perating Alaska, LLC has 100%ownership. b.) Maximum anticipated surfa'e pressure: MASP 13-5/8" 10M BO' The frac gradient @ s r oe less gas gradient. (14.3 ppg * .052 * 2',00')—(2900' X .1 psi/ft)= 1,866 psi c.) Potential Drilling Haz:rds: A review of th- drilling records for the nearest offset well identified the follow: KLU#4 KLU4 while riving the 30" X 1.5" X56 to 318' pipe hit refusal at 257' with 197 blows / ft. A pilot hole was dr Iled to 317' and which allowed driving to continue to 318'. While drilling the 12-1/4" pilot hole,;osses as high as 40 bph between 1080' and 1651' were encountered but 30 bbl pills with 15#/bbl fiber were effective in controlling the loss. The pilot hole was opened to 26" with losses from 491'-728', 1260-1340' and 1605'— 1845' 30 bbl pills 20#/bbl med fiber,15 #/bbl Caco3 were effective in controlling the losses. At 2396' the 20" casing shoe was set. After drillout a LOT 2 ' • • e? FURIE Operating Alaska LLC of 14.3 ppg EMW was achieved. With a KOP at 2700' an inclination to 24 degrees was achieved and the well was directionally drilled to 9200' TD. At 6282' a loss of 105 bbls. occurred which required a 20 bbl pill 16#/bbl to cure. The well had to be backreamed 6165-3616' prior to drilling to 7818. Drilling ahead required backreaming each stand. The bit trip from 7818' required backreaming out and wash back into the hole. The second bit trip from 7818 was made on the elevators as well as the rip from 9200 TD. E line logging was attempted but became stuck and had to strip over to recover. Pipe convey logs were run without incident. A 13-5/8" casing string was ran and cemented. The mechanical DV didn't open during the second phas- • cement job as the dart didn't reach tool due to 24 degree angle. A down squeeze of the e X 13-5/8" annulus was required. KLU#3 was drilled to 10,393' with no drilling issues in the 174/ ;' or 9-7/8" hole. Review of the most recent experience drilling of the 12-1/4" hole for the 2 & 2a found that lost circulation was experienced at 3179' with a loss rate of 120 bph but as cured with two 30ppb LCM pills. While on KLU#1, coal sloughing caused stuck pipe inc..ents at 10,248', 10,570' & 10,625'. Back reaming,washing and reaming, successfully clean- the hole. Additional mud weight was used to stabilize hole prior to running 9-7/8" casing. / Shell SRS State#1 identified a fluid loss of :0 bbl fluid at 625' no remedial action was taken, a gas influx at 6,260' requiring a bump in M from 10.5 ppg — 10.7 ppg. Fluid losses were seen in the interval from 7,243' to 8,941'. The to . volumes varied from 75 bbl to 200 bbl and assumed to be self-healing as there were no repor of the use of LCM. Additional gas cut mud was encountered at 13,370', which required a bum 6 in mud wt from 11.0 ppg to 11.4 ppg. At 13,814' again had gas cut mud and bumped wt to 12 ppg. After setting 7" casing at 13,341', the well was drilled and cored to 13,859'with a final 'ud weight of 16.0 ppg. During the subsequent re-entry the well was drilled to 16,375' with 16.7 ppg without incident. Although no mud density was noted in the summary well records,the Schlumberger DIL log dated 5-28-65 reports a mud weight of 16.7 ppg. Shell SRS State #2 wa• drilled to 15,403'. Gas cut mud was encountered at 14,386' requiring increasing the mud w.ight from 11.4 ppg to 12.0 ppg and again at 14,988' where the mud weight was raised from 14 • ppg to 15.9 ppg. Stuck pipe incident occurred at 14,242 and 15,094'. The pipe was successf ly worked free in both cases. Arco South Coo. Inlet #2 was drilled to 15,059' without incident. While drilling to TD at 15,189' gas cut mud r/quired weighting up mud in stages to 15.4 ppg. While attempting to log the well from TD, it began flowing, which required the well to be killed with 15.8 ppg. The 15.8 ppg was maintained juring the successful running and cementing of the 7"casing. Arco Soutii Cook Inlet #3 was drilled to 13,000' without incident. Sloughing coal at 13,000' ti required a bump in mud weight from 11.6 ppg to 12.0 ppg. A planned wt increase to 14.8 ppg was made at 13,875' in preparation for drilling the West Forelands formation. A 7" liner was successfully ran and cemented in 14.9 ppg mud to 14,320'. The well was drilled to 15,643' with 3 , i • • QFURIE Operating Alaska LLC 16.7 ppg. At 15,643' the mud weight was reduced to 16.5 ppg due to mud loss to the formation for a total of 241 bbls. A 45 bbl LCM pill was spotted. Post BOP testing the well was drilled ahead to TD at 16,000' without problems. The 16.5 ppg was maintained during the running and cementing of the 5" casing. Currently, there are no indications that any of the offsetting wells encountered any detectable levels of hydrogen sulfide. KLU#S's geological strata are the same as th. e of its offset wells. H2S is not expected to be encountered in this well. However, t• - rig and mud-logging unit will have functioning H2S detectors. In conclusion, a review of the drilling operations on the offset wells didn't identify any abnormal hazards that any prudent operator couldn't manage wi accepted standard drilling practices. d.) Drilling Fluid Summary: i Surface Hole 13-1/2"will be drilled 2,700 TVDS ,900'TVD BKB Gel Spud Mud 9.0 ppg. The 9-7/8" surface hole will be drilled to 12 100' MD with 12.0 p_pg_(glycol/ KCL/amine inhibited) mud. e.) Survey Program: r This is a vertical hole. Surveys of i'clination will be made every 500' in compliance with regulation 20 ACC25.050 f.) Logging Program: 13-1/2" GR/Res/Neutron aensity (Triple combo) 9-7/8" Intermediate/Pr,6duction LWD Neutron—Density—Resistivity-GR; E Line-Triple Combo (GR/Res/Neutron De /sity),Optional FMI Sonic (dipole), CMR, XPT& Rotary SWC's g.) Mud Logging: Two surface loggers alternately on duty / A complete set of washed and dried, legibly identified samples of all drill cuttings, as caught by the operator in accordance with good geological practices,consisting of a minimum of one-quarter cup in volu,fne or three ounces in weight of cuttings for each sample interval; 4 • • e? FURIE Operating Alaska LLC 'UPERC h.) Planned Casing Program for KLU#4 EDED 30" 10-3/4" Open hole Depth 400' 2,900' 12,000' Hole Size Driven 13-1/2" 9-7/8" Weight ppf 1.5" wall 45.5# Grade X65 K-55 Connection Tencom BT&C NA i.) Cementing Summary: ?lift1/4 30" 1.5" wall (27" ID) Drive pipe Cr Driven to 400' no cement ,moi 10-3/4"45.5#/ft set at 2,900' and BKB o 386'X 3.3458 cf/ft with i A excess = 1291.5 cf o 2114'X .3637 ct/ft wit 100%excess = 1537.7 cf o 400'X 0.3637 cf/ft w` h 100%excess = 291.2 cf o 40' X 0.5400 cf/ft ith 0% excess = 21.6 cf Total =3114.9 cf =555 bbl Lead Slurry 2,8 ' cu-ft 12.5 ppg, yield 2.08 cf/sk 136° 5K Tail Slurry .13 cu-ft 15.8 ppg,yield 1.15 cf/sk z7 z_ sK j.) Well Cont'ol Equipment: 21-1/4" 2M Diverter with two 12" diverter lines. 13-5/." 5M annular& 10 M BOP three ram 5 • • I AS STAKED SURFACE LOCATION 1101'FEL—A, KITCHEN LIGHTS UNIT#5 -0 NAD 27 ASP Z4 0 LAT: 60°51'18.1733"N LON: 151°11'51.7023"W o N:2506411.000 lig E:286441.000 w FEL: 1101' Cm) FSL: 2112' o ELEV:69'(MLLW) z z m I z ADL 389926 ° -10 SECTION 22 TO9N R11 W 2112'FSL 0 D I— m I I PROTRACTED SECTION CORNER N:2504280.703' E:287475.123' PROTRACTED SECTION LINE NOT TO SCALE 22 23 - — 27 26 NOTES •N �.�.""111 1.SECTION LINES SHOWN ARE EXTENSIONS OF PROTRACTED /_\ =••��OF A(,9 lig VALUES. Z.' ,�P.••' S' �j 2. DATUM TRANSFORMATIONS(NAD83 ASPZ4 TO NAD27 ASPZ4) *::'4 � .. 1, WERE DONE USING CORPSCON SOFTWARE VERSION 6.0.1. NORTH 3. WELL LOCATION AND MLLW ELEVATION PROVIDED BY OWNER. -......-00-0460.----;-=- • e m STAN A A MO NE :p „:% 4637-S SCALE 00I 'V'... AYI4 - P G' 0 100 200 III1 'Iss:os..`P`, --, J I I 1 FEET i I 1111'tVWk.`�� PROJECT FURIE OPERATING ALASKA, LLC REVISION: - FURIE KITCHEN LIGHTS UNIT#5(KLU 5) DATE: 5/06/U eCOOK INLET ALASKA DRAWN BY: ICB Operating Alaska LLC AS STAKED SURFACE LOCATION SCALE: 1'=100' 1• I�;yNAD 27 PROJECT NO. 143064 'It4 . Consulting Inc ENGINEERINGBOX 46 SO DOTNK AK 99669ESTING BOOK NO. N/A 1 P.O(07)488-SO8DOAK LOCATION PROTRACTED SEC.22 TO9N R11 W VOICE(80'!72834218 FAX:(807)2833285 SHEET EMAIL:SAMCLANE�MCLANECG.COM SEWARD MERIDIAN,ALASKA OF J , • • /7FURIE OPERATING of ALASKA,LLC I � KITCHEN LIGHTS UNIT NO.5 COOK INLET,ALASKA 5-20-14 RBL Operating Alaska LLC WELL BORE SCHEMATIC SL: X-286,441E; Y-2,506,411N BHL: X-286,441 E; Y-2,506,411 N TUBULARS&SETTING DEPTHS PP MW Frac DIRECTIONAL API: TBD DEPTH(KB) 30 Air Gap (PPG) (PPG) (PPG) FORMATION EVALUATION Permit TBD MD TVD DRILL FLOOR RKB TO SEA FLOOR 83 HIGH TIDE 108• MEAN LOW LOW WATER 183 SEA FLOOR A°! , 350 167'P 30"x 1 1/2"W/T DRIVE PIPE Mudlog 13 1/2" Triple combo 2700'TVDSS Gyro ( 2,900 10 3/4"45.5#K-55 HC BTC 8.6 9 14.3 1 I ! 1 I5') ���'.7 Mudlog 9 7/8"HOLE MWD/LWD: RESISTIVITY-GR- or ESISTIVITY-GR- Ir 5248 5248 Sterling I I I 1 1 I I I I 1 1 1 I 1 I I 1 1 I I 1 1 I 1 I I I I I 1 7588 7588 Beluga I 1 I I I 1 I I I I ELECTRIC LOGS(OPTIONAL): I 1 Triple combo FMI;MDT;Dipole Sonic; Sidewall Cores:MRI I 1 I I 1 1 I I I 1 I I 1 I I 1 I I 11688 11688 Tyonek 12000 12000 10.5 12 17.7 DEM 5/20/2014 KLU#5 schematic rev small xlsx 5/20/14 7 et, • FuRI Operating Alaska LLC FURIE OPERATING ALASKA - KITCHEN LIGHTS UNIT NO. 5 DRILLING PROCEDURE A. LOCATION: 1. Jack down to water and test Spartan 151 hull for seaworthiness. 2. Record tug's name,dock departure time and time at location. 3. Hook up lines and free legs. 4. Tow rig to location: a. X= 286,441E&Y=2,506,411 N (NAD 27,ASP Zone 4). Lat: 60°51' 18.17" Long; -151°11'51.7023" b. Location tolerance is 100'diameter circle. c. Seafloor is cobble and gravel with a possible light veneer of sand. d. The closest sand waves are 422'west of location. e. The nearest large boulder is 349'southeast of location.The boulder is 9'x 7"sticking up 5'above seafloor. f. The 2nd nearest large boulder is 357'southeast of location.The boulder is 14'x 3"sticking up 6' above seafloor. 5. Take side scan sonar to verify location clearance. 6. Orient Spartan 151 with 227.57 degree True North bow heading. 7. Pre-load Spartan 151. Maximum load is 292M#'s in air. 8. Jack up to 30'air gap above mean high tide. All measurements are assumed using 30'air gap above high tide. B. Drive Pipe 30"x 1 1/2"wall to 350'#167'Penetration-RKB to sea floor - 183': 1. Rig up 30"casing running tool and D-62 drive hammer. 2. PU 30"x 1 1/2"with Tencom FID connectors joint with drive shoe. 3. PU 8 joints of 30"x 1 1/2"with Tencom FID connectors. 4. Make up Torque; Min.-35,000 ft-lbs.;Max-40,000 ft-lbs. 5. Drive 30"to 355',±170'of penetration.Anticipate maximum blow count to be 150 BPF,but final blow count may be less. 6. Cut 30". 7. NU 30"SOW x 21 1/4"2M flange. ,Jl 8. NU 21 1/4"2M diverter. �' �� z-vim!' 9. NU outboard lines to divert and function test. ( 14, t ""`` 10. MU 17 1/z""bit,3-8"collars and heavy weight and GIH. 11. Close diverter and pump through lines for test: a. Have cement valve at+ 10'. C. Drilling 13 1/2"Hole to 2900'TVD/MD: (2700 TVDSS) 1. GIH with 17 1/2"bit,3-8"collars on 5"heavy weight drill pipe. 2. Wash out DP to 375',using seawater. 3. Displace seawater with viscoscified spud mud. • e.7 FURI Operating Alaska LLC 4. POOH. 5. Lay down 17 1/2"bit 6. Pick up±11,000 of 5"drill pipe. 7. Pick up 13 1/2"bit using pendulum assembly as follow: 13 1/2"bit,bit sub,62'of 8"collars,13 1/2"Stab (bored for float)@ 1/8"UG,31'of 8"collar, 13 1/2" stabilizer @ 1/8"UG,93'of 8"collars,24 joints of 5"heavy weight,7"jars,5"drill pipe to surface. Insert crow foot in BHA. 8. GIH and drill 13 1/2"to 2900'. 9. Drop Gyro. 10. POOH. 11. Rig up Schlumberger unit. 12. Rig and run Triple combo to 2900'. 13. POOH with triple combo and rig down Schlumberger. 14. Rig up casing tongs and run 10 3/4"45.5#K-55 BTC casing as follows: 10 3/4"54.5#K-55 BTC float shoe 84'of 10 3/4"54.5#K-55 BTC casing cC�� 10 3/4"54.5#K-55 BTC float collar ` 5 4� ±2916'of 10 3/4"54.5#K-55 BTC casing 15. Make up torque values should be carefully noted on the first 6-8 joints while making up casing to the base of the triangle. Use this established torque value on the remainder of the casing. 'if coupling face is between minus 1 thread turn(.2")and the base of the triangle,the make-up is satisfactory. 16. Rig up circulating swedge and circulate bottoms up with 100%wash-out factor or 390 bbls minimum. Circulate until background gas is at or below drilling levels. 17. Stage pumps up to 8-10 bbls/minute. Watch for losses and reduce rate if losing volume, Bottoms up is 195 bbls. 100%wash-out is 390 bbls. 18. Run two 1 1/4"grout string to 40'..ML while circulating. 19. Rig up Cement per cement program below: Lead 1394 sacks Class G+.005 lbs/sack Static free+0.4%bwoc CD-32+0.5%bwac FL-52 + 1 gal/sack FP-6L+ 1%bwoc Sodium Metasillicate+ 105.1 %Frsh Water WEIGHT: 12.5 ppg YIELD: 2.08 Cu.Ft/sk Water: 11.84 gps: Mix Fluid: 11.85 gps Pump Time: 5:00± Tail 272 sacks Class G+.005 lbs/sack Static free+0.3%bwoc CD-32 +0.6%bwac FL-63 + 1 gal/sack FP-6L+.1%bwoc R-3 +.1%bwoc ASA 301 +43.7%Frsh Water WEIGHT: 15.8 ppg YIELD: 1.15 Cu.Ft/sk Water: 4.93 gps: Mix Fluid: 4.94 gps Pump Time: 2:30± • fFURI Operating Alaska LLC 20. Displace cement with±284 BBLS mud to top of float collar.Bump plug with 1000 psi over pump pressure. 21. Do not over displace cement by more than 10 bbls. Capacity of 10 3/4"shoe track is 20.8 bbls. 22. Circulate seawater through grout string circulating cement out from 30'BML to surface with grout strings, spot 10 bbl sugar pill from 40'BML. 23. POOH with grout string. ecr 24. Cut 10 3/4"and 30". ! � 25. Nu 10 3/4"Sliplock x 11"5M well-head. Test to j..&&'psi. 26. NU 11 "5m x 135/8"10M DSA. seo 27. NU 13 5/8"10M" BOP, and 13 5/8"5M Annular. 28. Test BOP and all equipment to 250/1 psi. Test annular to 250/ 6'tipsi. • - )jc. c; Soi D. Drilling 9 7/8"hole to 12,000'MD/12,000'TVD BOP test every 7 days. 1. Make up 9 7/8" PDC bit,MWD and GR/RES LWD and BHA. 2. TIH to#2912',top of cement. 3. Test casing to 1500 psi for 30 minutes on a chart. Casing Burst value is 3580 psi. 4. Drill cement;float equ pment and-20'of new formation. 5. Perform 10 3/4"shot 13.5_ppg FITS. Anticipate a 14.3 ppg EMW frac at 2900'. Using 9.0 ppg mud, 13.5 ppg at 2-67-// 7. 2900'677 psi. 6. Continue rilling to 12,000.MD/TVD or dull bit,after successful FIT. Sterling @ 5248' MD/TVD Beluga @ 7588'MD/TVD Tyonek @ 11,688'MD/TVD 7. Circulate hi viscocity sweeps as needed for hole cleaning. 8. CBU at 12,000'Anticipated mud weight is 12.0 ppg. Mud weight is anticipated for hole stability. Maintain as low a mud weight as able. 9. Condition for logging run. 10. POOH and L/D LWD. 11. Rig up electric line unit. 12. Rig up shoot nipple lubricator with Hydril stop. Test to 500 psi. Casing collapse is 2090 psi. 13. Log well with Triple Combo. 14. Have MDT FMI,Dipole Sonic on standby at rig. Have sidewall core and MRI available. 15. Before running MRI -GIH and make conditioning trip with 9 7/8"bit,near bit stabilizer 1/8"UG,93'of 6 1/2" collars,6 3/4"string stab 186'of 6 1/2"collars„5 joint of hevi-weight,jars,24 heavy weight and drill pipe to surface. 16. Rig down logging unit. 17. GIH open ended with drill pipe only to TD. 18. Circulate and condition. Q 19. P&A procedure to follow. -4 �� 4 3 P 7t • -q111111ww- \11. FURIE OPERATING ALASKA, LLC c‹.) FURIE Operating Alaska LLC KITCHEN LIGHTS UNIT #5 1029 W.3rd Ave. ,Suite 500 Anchorage,Alaska 99501 2014 DEPTH VS DAYS 0 N 350'--30"X 1 1/2"W/T X-56 DRIVE PIPE __.\ I -- Proposed KLU 5 1000 I 2,900'10-3/4"45.5#/ft K55 BTC 2000 r 3000 4000 i l 5000 6000 7000 LL 8000 9000 a , I p 10000 11000 cow ! E 12000 ! I I I 13000 14000 15000 16000 17000 18000 ! 19000 20000 0 10 20 30 40 50 60 70 • • • /I.0• ___.......1 soie, FuRIE Operating Alaska LLC Geo Mechanical Plot KLU#5 o —_I—__ _— .re._ .,_ _ s r 2000 .__,.__v, ®. .. _ _����.....�_... .. .� 4000 Depth6in ft LOT -fix MW 8000 —♦ Pore Pressure 10000 __— __ _�._a_.a u- 12000 t EM in ppg 14000 L 8 10 12 14 16 18 20 1z • 4.. . 4.. ul r1 • Ml$ g; 1# - 11 le y U Pra{h3 ` k I i A ener1P09ED 'I � 111 o U Pcole..4 { w �, , w i , g , , , . 1 P , $rr .y,.. a1►`. �* I �'rgr a t1. ,,1 , . B � &`4 ,4 # 0 -: ' F" M41 5. p ` :4\1:14: 1ti CAI V u 2 '•. NIKI 7A.ees'A�•J r`••is i l J ll•' / .A dl ll� 1 444. _,, j. 4 ,, ,, K 0 zi M� CODK .ET Sl'l Ne Y I ` 00 o 4000.11 LIJ y a• 4 4; / , , MM IN ''' N I M ru :hell SPA ST2 i 7 WY'JIP .. 0 ,-I ,- , cc °e N Ct o 3 i 5 d < ---..r,jcr, (.9 z e<Q. W ' P 1[R IM N r ti \ q 7 .� LII.I1 CC { it C \\ ` R� ,. 111 Y N oI G � f 1 S ,.\\,', 1,72 •pI S - "(1 Al S l 1 a e,.. 1 6 o 0 0 • • es? FURIE Operating Alaska LLC KLU#5 Mud Disposal Volumes Interval: 386'—2,900'Al 13 '/2"Hole Section 9.0 ppg AQUAGEL/fresh I.D. Depth BBLS Pit Volume 500 Cased Hole 27" 386' 273 Open Hole 13 '/2" 2,900 447 Washout% 25% 111 Dilution(total x 1.6) 2130 Total Volume 3461 Total Fluid Cost Cost/bbl I *Price may vary depending on required dilution rates while drilling. 6.2 Interval II Cost Interval: 2,900'— 12,000' 9 7/8"Hole Section 9.0—12.0 ppg 2% KCL/I LD. Depth BBLS Pit Volume 500 Cased Hole 9.95" 2,900 279 Open Hole 9.875" 12,000 853 Washout% 15% 128 Dilution(total x 1.4) 2464 Total New Volume 4224 Total Fluid Cost Cost/bbl I *Price may vary depending on required dilution rates while drilling. • • FU RI E Operating Alaska LLC Furie KLU#5 Casing Design Lease holder Calculation based on the Energy Resource Conservation Board Alternative Design Method 5/15/14 Collapse Burst Burst Conn. Tensile Tensile Conn SF Collapse SF Burst SF Tension 10-3/4"45.5#K55 BTC 2090 3580 3580 715 715 1.54 1.92 6.27 "c"designation on rating indicates connection limited. 10-3/4"45,54 K55 BT&C Casing Collapse pressure based on mud density at casing point 10-3/4 45.5#K55 BTC Collapse Rating 2090 Calculated Collapse Pressure=(9.0 ppg*2900'*.052)= 1357 Collapse SF 1.54 Calculated Burst=Frac Gradient at shoe-gas gradient 10-3/4 45.5#K55 BTC Burst Rating psi 3580 Calculated Burst(14.3*2900'*.052)-.1*2900= 1866 Burst SF MASP 1.92 1866 Tensile Strength SF Calculation 10-3/4 45.5#K55 BTC Tensile= 715 K Pipe area 10-3/4 45.5# 10.75"OD x 9.95."ID= 13.00 sq in Bouyed 13 sq in*9.0*2900*.052= 17,643(+) Air Wt(45.5*2900)= 131950(-) Tensile SF Net Hanging Wt. 114,307(-) 6.27 1 • 0 e,..7 FURIE Pdaska LLC KLU#5 Kick Tolerance Work Sheet LOT MW 9 9 9 LOT ppg 11.7 13.5 14.3 Current MW 10.5 10.5 10.5 Shoe Depth feet 2900 effective 2900 effective 2900 effective Proposed depth of hole 12000 12000 12000 Kick toleracne factor 0.29 0.725 0.9183333 MASP 180.96 psi 452.4 psi 573.04 psi Max Formation Pressure 6732.96 psi 7004.4 psi 7125.04 psi Max influx height 405.73991 ft 1014.3498 ft 1284.843 ft Hole size 9.875 in BBL/ft 9.875 in 9.875 in DP OD 5 0.070444555 5 0.0704446 5 0.0704446 BHA OD 6.75 0.050469327 6.75 0.0504693 6.75 0.0504693 BHA length 142 142 142 BHA annular vol 7.1666444 bbls 7.1666444 bbls 7.1666444 bbls DP annular vol 18.579041 bbls 61.452292 bbls 80.50707 bbls Max influx volume @ shoe 25.745685 bbls 68.618936 bbls 87.673715 bbls I • • e-7FURIE Operating Alaska LLC FORMATION INTERGRITY and LEAK OFF TEST PROCEDURE 1. Drill 20'to 50'of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system (required for a good downhole pressure test).Pick up into the shoe. 3. Close the blowout preventer(ram or annular). 4. Pump down the drill string.The slowest possible pump rate is preferred to allow detection of leaks.Pump rates of 1/4 to 1 BPM are typical;however,adjust the pump rate to match the test pump capability to maintain a constant pump rate. 5. Plot the fluid pumped(volume or strokes)vs.drill pipe pressure. Record pressures approximately every 1/4 bbl pumped.The data points should initially form a straight line with a similar slope to the casing integrity test,as the system compressibility's are similar. Eventually,the formation begins to take fluid;at this point the pressure will continue to rise,but at a slower rate and the data points will deviate from the straight line.The first, sustained occurrence of this departure is the leak-of point. Pump an additional 3 bbls after the suspected leak-off point is reached to assure continues decreasing slope on the pressure versus volume plot. If a straight line cannot be established during the initial pumping(suggesting a surface leak or air in the system)or a clear leak-off point is not indicated consider re-running the test.Be sure to bleed all pressure off the system prior to re-running the test.A slightly higher pump rate may be considered if a clear departure is not indicated on the pressure versus volume plot.Small filtration fluid losses can cause a slope change,especially at slow pump rates,and confuse the identification of a more definitive leak off point. Note: If a 16.0 ppg EMW or the maximum EMW specified in the wellplan is reached without indication of leak-off,shut down and hold the pressure there. This becomes the data for a formation integrity test(FIT)instead of a leak off test(LOT). 6. Shut down when the leak-off point is observed and 3 bbls of mud have been pumped into the formation. Record the instantaneous shut-in pressure(ISIP). With the pump shut down,monitor and record a 15 second and 30 second shut-in pressure and the shut-in pressures for a minimum of 10 minutes(at 30 second intervals)or until the shut-in pressure stabilizes. Plot the information and record the LOT point or FIT point. Bleed the pressure off and record the fluid volume recovered if possible. If in doubt of the leak off point,contact the Drilling Engineer or Drilling Team Lead to discuss and evaluate the test. Upon completion of the test,forward the data to the Drilling Engineer in Anchorage. The Drilling Engineer will forward the information to the proper agencies. '7 ir‘ • Furie Operating Alaska, LLC FU RI E Location: KLU#5 Rig: Spartan 151 int•Ymi n,na u[ Company man: AFE: County: Number: r . 21-1/4" 2M Annular (Not Knight Property) ea-) FURZE 52-1/2" Drilling Spool K �' ■�■ ■�■ ■�■ 12" Diverter Valves • K K 21-1/4" Drilling Spool W/12" Outs 4141 } liiii! iI] Mud Cross ® It Till �_ lelInn:nfn �_ 11Ii ,_ mum:II El :.— Well Head 41,31 1430 WAWA' rrr,i r,err,r% `11�1 �1 f�1� Y l) f}�4�f�4�4�4�4�4�4�f�i�4�# if�f�f�fi� (Not Knight Property) Rings&Bolts used for assembly and testing Rings sent loose Bolts sent loose • • • C Operating 1029 W.3rd Ave. ,Suite 500 Anchorage,Alaska 99501 M 1�L calls 'a AI. a a - 1 ' ‘ cC7 . 4,_6' 13-5dIP i s\ DRI1. - 1.- - -t 6 sato tat -- i 9.Oubtemetlis?Sr•OMwnod nhptidt.ellia1(IIIIIK — Y — --On .idlil f isrN■sPM■ I b 14' 7 101 S'-•7' a 1 ill w, ar■npri �" 411■.11tf14•I■1 - Allst ■ll. ■I >41 4 1/16W -10M VALVES SAN Li4-1/16' •IOM VALVES Y 3,�6' pr®MI j 1 r J l im i YY SAS Lit_� - ! 9 • • i 11 E S I 8 -1—Ali oNf j w i 21 2 n W nJ Y .r,, , 1 . 1 i �ocQn- 1 , W L ` bG NN ! 2 is Y •j i I Z - U i g Z M N m` V69.1-F2 1 I ra CL 1 0 A a I 1 . o 71 N ag ill ErnpS _ O J U 1 �ps5 W I�f o —g ��p�jK 6. 111 / g e z...„C LO * I : J ' bgill( {pyQ r —' W = d 1 ��t 1 O o ��i) an �, to 2 3 2 0 / 0 . �.r „ler I 111 741 22222222222W R0 j gNNN00000000 I Al _ 0 L A O I U U lv -i IS / O N J J J J z .LATA 99 ; j O =O Y U < U Q pW j < O O o > i Q3 g ”- O �curi i i 0 O r j = o Y . 1 n ly OD 0 CD • iD • OG • im y� / • In N N h M ♦ n M N N N (D 20 a t • • • > I 11,d,I !r.'z _ $g JJJv i'' .a.. ti 1... 1 ���I 6Q QOWW \ cMllw WN ~J 6m o > UOO 1 ,-,IIT. 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III .11401i: -rggi !It i 111* (4)111- lel 4ci kift!I i __ ii, Ito __. . _ 11" 5M X 10-3/4"Slip Lock 10-3/4"45.5 # K55 BTC Surface Casing 2q • • 11111 ; 142 I W up L go 11 1 1:11 z 1 L 1 il gii 4,1 . gi q '1' _ iia � ' i� rU fi t 141 *.:__A , I t, i R i4.. _ 4\\1(pl._......._ ( ' !, 1. 1 \\1411446.141111\ASHLIIIIN ) I i 3, 1 4. , ii ■ 1 i . F<. `N Z I I 1If g S = r L10 .3 , f t I oM J 9n V ia� r •, 11> 071.12, rl Ii 1 , 11 ',i PIE I i —7— I 1,......— '1 All 43N ' !; '''''''''... _.._ 1.-j I. , li„, .. --'1 1 i I-11 MA ' - --tgir i - I , • III ! CY le El W n -I1 R 1 _ 1 _�.._ K I W ilui 1 0i ws__,to 1.. .. ' z� c � � re t t 174 a -co ao no 4 Pa C �. • 0 • • e.? FURZE Opit A1rdo L1,C 1029 W.3rd Ave.,Suite 500 Anchorage,Alaska 99501 "A" ,\AIITIIIP7 W/12 v�VESS \ iiii11111111 } accuuuuroR ES 10' ' DRILL FLOOR ^ ', IiI111l11N11I MIG b . — —r Viiliirkai....-k, 12' 1 li ' 1 ` MParits)11( !IIIIIIIIIIII _._.__H__ :; , — — �� SIDE VIEW -- DRILL FLOOR ii -II \, CANTILEVER _._— ... 1 — R it BEAMa/s r.r.....r- — • I 11I■■ ■ I 10, Onal FleoR p--= y =__ _- -=ae .-- I / j ® SECTION "A—A" t1 10'THL FARE WALL W/AOCESS DOOR . ....rwr>L.....r.rrr.. am u DRILL FLOOR «.... 111111••• immure rR+..w..r...,ewsit rrwormrr.r. r.w -rwr te IWo Ram S#lpTLa0m.ws ild. O0f Dm Ula Matruh LWaN& TOP VIEW - DRILL FLOOR MO:" "ANxI ACCUMULATOR FIREWALL r2fJA11 �"'k A.C.E. �DD. ler-, 11 4110 • • Schwartz, Guy L (DOA) From: Bob Laule <b.laule@furiealaska.com> Sent: Monday,June 09,2014 11:27 AM To: Schwartz,Guy L(DOA) Subject: KLU5 Permit to Drill revised documentrs Attachments: 3 Prognosisrevi.docx; 10 Casing Safety factors KLU#5 Revi.xlsx Guy attached are the revised Permit to drill documents for the KLU 5 drilling permit.These reflect the changes discussed this morning 6-9-14.The MASP calculation method was revised as agreeded with the revised calculated value of 3,256 psi.This will change the Burst Safety factor on the 10-3/4 K55 casing to 1.1. Therefore the box 17 on the 10-401 should be revised to show the Max down hole pressure to be 6,552 psi and the max surface pressure 3,256 psi.Note that during the our discussion I said that the program called for a FIT of 14.3 ppt actually as currently written the program(page 10 PTD)is currently drafted for a 13.5 ppt FIT which equates to a 68 bbl kick tolerance ref page 16 of PTD. Thanks Bob • • 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: I(1.(k, PTD: 09./ LI 0?2 Development _Service ✓ Exploratory _Stratigraphic Test _Non-Conventional FIELD: POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - in API number are Production should continue to be reported as a function of the original between 60-69) API number stated above. In accordance with 20 MC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name Pilot Hole ( PH) and API number (50- - - - ) from records, data and logs acquired for well(name on permit). The permit is approved subject to full compliance with 20 MC 25.055. Approval to produce / inject is contingent upon issuance of a Spacing Exception conservation order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10'sample intervals through target zones. Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 MC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are w/ Well Logging also required for this well: Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 MC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. -/ .3o x /.s ' c rJ -o,r- d v_191',34 OO' ir►d -Ao 071,A.1 ZEA. Revised 4/2014 • II L 7 0 CL 3, 0, a) p NO CT) E C , 7, 0, Q : .E a C6 U. ON O ,c Li- OO, C 03 J O, BH ° U)co 0 O) i'p) (0 CI O O o)12 a> 't. .c E p) c d �, 3 o ) 2 m 0 .- 2 3'. o -1 'D, o' o > m n �, �? m. o, J w U �' a), 3 �' c9 U) -o c c CO' @ a) a o '� c CJ m ° Cl) -. c E o •3 N. E aci a a): c, Ch 4 7 E, E o c v, Q co O, �, 0, O, 2 a -° ? a= 0 >' o i",1- LU a m, 0) 2' c' a) D 0 N' a Z 0 = 0 a) 0) d, O C E W O, y, 0- cm Q M C)) U N, 0 N. O. 0 LO N 4 U, 0) N N (0 m >, LO, m. 4 "O, (fl N a) °: �, N'. 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O m m U 5 N' 2 a p, cD co U W Q O ,- N CO V LO (C) h CO CA O N- N CO 'Cr LC) (0 I 00 CA O — N CO V U) (0 N CO 0) /'" _ E ,- N coV LO COr CO0) l— <— N N N N N (N N N N N COM COCOCOCOCOCOCO CO ^ U o ) HC 7 N y 2 O c 2.cu ( NN U ° Ce N O Oto N ON r N o R "' E m Lo a°) E J E d a) O E N c0 2 ,a. co O m 0 W 1.- -o Q 0 to a U Q a > Q • • Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. KITCHEN LIGHTS UNIT KLU#5 Cook Inlet, Alaska ADL #389926 FINAL WELL REPORT & MUDLOGGING DATA Provided by: Approved by: Bruce Ganer Compiled by: Seth Nolan Josh Dubowski Distribution: 10/10/2014 T.D. Date: 09/25/2014 Kitchen Lights Unit #5 1 TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT & CREW ................................................................................................2 1.1 Equipment Summary ......................................................................................................................2 1.2 Crew................................................................................................................................................2 2 WELL DETAILS .....................................................................................................................................3 2.1 Well Summary.................................................................................................................................3 2.2 Hole Data........................................................................................................................................3 2.3 Daily Activity Summary...................................................................................................................4 3 GEOLOGICAL DATA.............................................................................................................................6 3.1 Lithostratigraphy .............................................................................................................................6 3.2 Mudlog Summary............................................................................................................................6 3.3 Connection Gases ..........................................................................................................................9 3.4 Trip (Wiper) Gases..........................................................................................................................9 3.5 Sampling Program / Sample Dispatch..........................................................................................10 4 PRESSURE / FORMATION STRENGTH DATA.................................................................................11 4.1 Pore pressure evaluation..............................................................................................................11 5 DRILLING DATA..................................................................................................................................12 5.1 Survey Data..................................................................................................................................12 5.2 Bit Record.....................................................................................................................................18 5.3 Mud Record ..................................................................................................................................18 6 DAILY REPORTS ................................................................................................................................20 Enclosures: 2”/100’ Formation Log 2”/100’ Drilling Dynamics Log 2”/100’ LWD Combo Log 2”/100’ Gas Ratio Log Final Data CD Kitchen Lights Unit #5 2 1 MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary Parameter Equipment Type / Position Total Downtime Comments Ditch gas QGM Agitator (mounted in possum belly) Flame ionization total gas & gas chromatography. 1hr Change leaking hydrogen line Hook Load / Weight on bit (data signal from top drive) 0 Mud Flow In Derived from Strokes/Minute and Pump Output 0 Mud Flow Out Flow Paddle 0 Mudlogging unit computer system HP Compaq Pentium 4 x3 (DML & RigWatch x2) 0 K-Box Rig floor data Collection/distribution center 0 Pit Volumes, Pit Gain/Loss Radar Sensors 0 Pump Pressure Pressure transducer 0 Pump stroke counters Proximity Sensors 0 Rate of penetration Derived from block height (drawworks encoder) 1 hr WITS block height from MWD RPM (data signal from top drive) 0 Torque (data signal from top drive) 0 1.2 Crew Unit Type : Steel Arctic Unit Number : ML067 Mudloggers Years *1 Days *2 Sample Catchers Years Days *2 Technician Days *2 Seth Nolan 2 25 Shawn Seymour 6 24 Travis Smith 1 Josh Dubowski 7 25 Dean Kekaualua 7 24 *1 Years experience as Mudlogger *2 Days at wellsite between spud and total depth of well Kitchen Lights Unit #5 3 2 WELL DETAILS 2.1 Well Summary Well: KLU #5 API Index #: 73-20632-00-00 Field: Kitchen Lights Unit Surface Co-Ordinates: 957 FEL, 2104 FSL, Sec 22, T09N, R11W Borough: Kenai Peninsula Borough Primary Target Depth: 12000’ MD / 12000’ TVD State: Alaska Total Depth: 11827’ MD / 11824’ TVD Rig Name / Type: Spartan 151 Jackup Suspension Date: (N/A) Primary Target: Tyonek Formation License: ADL 389926 Spud Date*: 9/4/2014 Ground Elevation: 179’ BMSL (sea floor) Completion Date: (N/A) RT Elevation: 95’ AMSL (179’ ASF) Completion Status: Plug and abandon Classification: Exploration Secondary Target: Depth: N/A TD Formation: Upper Tyonek TD Date: 9/25/2014 Days Drilling: 22 Days Testing: None 2.2 Hole Data Maximum Depth Shoe Depth Hole Section MD (ft) TVDSS (ft) TD Formation Mud Weight (ppg) Dev. (oinc) Coring Casing/ Liner MD (ft) TVDSS (ft) LOT (ppg) 13 ½” 2840’ 2661’ Alluvium 9.3 1.13 no 10 ¾” 2838’ 2659’ 13.5 9 7/8” 11827’ 11648’ Upper Tyonek 11.9 2.67 no PNA - - - Well Prognosis KLU #5 is an exploration well planned to drill into the Kitchen Lights Unit in the Cook Inlet, Alaska. The planned objective is to drill a well to explore for oil and gas using the offshore jack-up vessel, Spartan 151. The proposed well will be a vertical well drilled to approximately 12,000 ft. penetrating the Sterling, Beluga and confirming the presence of the Tyonek formation. Kitchen Lights Unit #5 4 2.3 Daily Activity Summary 9/4/2014: Finish building spud mud. Pick up BHA and begin drilling 9/5/2014: Continue drilling ahead. 9/6/2014: Continue drilling down to TD. Circulate hole clean and POOH. L/D BHA and R/U SLB wireline. Running wireline at report time. 9/7/2014: Finish running wireline and R/D SLB tools. P/U cleanout BHA and RIH. Circulate hole clean then POOH. L/D cleanout BHA and P/U casing tools. On bottom prepping to cement casing. 9/8/2014: Finished circulating with casing and R/U cementing equipment. Cement casing and R/D cementing equipment. N/U BOP's while building mud for next hole section. 9/9/2014: Continue N/U BOP's 9/10/2014: Continue N/U BOP's 9/11/2014: Finish N/U BOP's, R/U testing equipment and test BOP's. 9/12/014: Finish testing BOP's and R/D testing Equipment. P/U BHA and RIH. Swap out spud mud for KCl/polymer. Tag cement, R/U and test casing for 30 min. R/D testing equipment and drill out cement and 20' of new hole. Performing FIT at report time. 9/13/2014: Finish performing FIT and POOH to replace MWD tool. L/D malfunctioning MWD tool and M/U new BHA. RIH and drill ahead. 9/14/2014: Continue drilling ahead. 9/15/2014: Continue drilling ahead to 7990'. Short trip out to 5867' then run back to bottom. Continue drilling ahead. 9/16/2014: Continue drilling ahead. 9/17/2014: Continue drilling ahead to 10052'. Decision was made to POOH and inspect bit due to low ROP. Circulate bottoms up and begin back reaming out of the hole. 9/18/2014: Continue back reaming out of hole until the shoe. POOH and L/D BHA. R/U testing equipment and begin testing BOP's. Kitchen Lights Unit #5 5 9/19/2014: Finish testing BOP's and R/D testing equipment. P/U BHA and TIH. Circulate bottoms up at the shoe then begin reaming to bottom. 9/20/2014: Continue washing and reaming to bottom. Tag bottom and begin drilling ahead. Drill ahead to 10107' and rack back a stand and service top drive. 9/21/2014: Finished repairing top drive. Slip and cut drill line. Continue drilling ahead. 9/22/2014: Continue drilling ahead to 10203. Decision was made to POOH and change bit. CBU and begin pumping out of the hole. 9/23/2014: Finish POOH and L/D BHA. P/U new BHA and RIH. Wash down from 8570' to bottom. Drilling ahead at report time. 9/24/2014: Continue drilling ahead. 9/25/2014: Drilled down to 11827' and called TD. Circulate hole clean and begin back reaming out of hole. 9/26/2014: Complete back reaming out of the hole. L/D 5” DP. Begin to TIH with cementing string. Kitchen Lights Unit #5 6 3 GEOLOGICAL DATA 3.1 Lithostratigraphy LWD tops refer to provisional picks by the Furie geological representative. PROGNOSED LWD PICK FORMATION MD (ft) TVD (ft) SSTVD (ft) MD (ft) TVD (ft) SSTVD (ft) Sterling 5,248’ 5,248’ 5,069’ 5,231’ 5,231’ 5,052’ Beluga 7,588’ 7,588’ 7,409’ 7,476’ 7,476’ 7,297’ Tyonek 11,688’ 11,688’ 11,509’ 10,335’ 10,335’ 10,156’ Total Depth 12,000’ 12,000’ 11,821’ 11,827’ 11,824’ 11,645’ 3.2 Mudlog Summary Surface casing shoe to the top of the Sterling Formation 330’ to 5231’ MD (151' to 4743' SSTVD) Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 401 1 153 10 0 3 The Alluvium section consisted mainly of unconsolidated sand, tuffaceous siltstone, tuffaceous claystone and occasional coals. There were no notable gas peaks or hydrocarbon indicators observed in this section. The sands were typically light medium grey to medium grey with pale brown to olive hues. Unconsolidated for the most part with trace amounts of soft and easily friable clasts near the bottom of the interval. Overall the sands are medium to fine grained with coarse grains being common. 2-10mm pebbles common throughout the conglomeratic sand sections. Grains are typically sub spherical and angular to sub discoidal and sub angular with poor to moderate sorting. The sands are dominated by translucent to clear quartz. Dark lithics are also abundant with small to trace amounts of Pyrite, Biotite, greenstone, feldspar, calcite and carbonaceous shale. The claystones are typically light medium grey with pale brown to olive hues to dark medium grey. The samples are poorly indurated with a clumpy to tacky consistency, pulverulent to malleable tenacity with earthy to irregular fracture. Overall they display an amorphous cutting habit, dull to earthy luster and a silty to clayey texture. Occasional deformed carbonaceous banding embedded in some of the clasts. The trace amount of coals observed were typically grayish black to black, friable to firm and have a crunchy to stiff consistency. Blocky to angular platy fracture with a dull to resinous to greasy luster. Coal heavy samples typically have a burt charcoal odor. Cuttings sizes range from 2-10mm and are commonly interbedded in the tuffaceous claystone clasts. No visible de-gassing observed in the coal samples. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 feet units ppm Kitchen Lights Unit #5 7 (No significant gas peaks were observed in this short interval.) Sterling Formation 5231’ to 7476' MD (5052' to 7297' SSTVD) Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 476 1.2 170 31 0 5 The Sterling formation consisted of tuffaceous siltstone and claystone with occasional tuffaceous sandstone and thin coals. There were no notable gas peaks or hydrocarbon indicators observed in this section. The tuffaceous siltstones were typically medium brownish grey to medium grey with dark brown and olive hues. They display poor to occasionally moderate induration, mushy to clumpy consistency with malleable to pulverulent tenacity. Irregular to tabular to earthy fracture is common with an amorphous cuttings habit and a dull to earthy luster. The texture is typically silty to clayey to occasionally gritty. Overall the clays are semi hydrophilic with moderate cohesion and adhesion. Deformed carbonaceous banding is common in the clasts. The tuffaceous sandstones are typically pale brownish white to light medium grey with pale yellowish brown hues. Typically soft to unconsolidated to occasionally firmly friable with upper medium to upper very fine grains. 2-4mm pebbles found in the trace conglomeratic sections. Grains are typically sub angular to sub rounded and sub spherical to sub discoidal with poor to moderate sorting. Clasts are typically supported by a tuffaceous matrix and occasionally grade to grain supported. The sands are dominated by translucent to clear quartz with dark lithics being common. Trace amounts of Pyrite, Biotite, greenstone and carbonaceous sediment. The coals are typically thin and included in the siltstone clasts with the occasional thick layers throughout the interval. Overall they are matte black to grayish black, sub bituminous, moderately firm with planar to hackly to sub conchoidal fracture. They commonly display a sub resinous to earthy luster and platy to irregular cuttings habit. No visible de-gassing. Gas Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 feet units ppm (No significant gas peaks were observed in this short interval.) Beluga Formation 7476’ to 10335’ MD (7297’ to 10156‘ SSTVD) Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 290 0.3 69 140 0 18 The Beluga formation was made up of alternating tuffaceous siltstone, claystone, sandstone and thin coal lamination. Moderate amount of gas observed throughout the interval and no hydrocarbon shows. The siltstones in this section are typically medium grey with dark olive hues to medium grey with pale blackish brown hues to dark medium brown with black hues. They are mushy to clumpy to pasty, pulverulent to malleable to crumbly. Typically they display an amorphous to blocky cuttings habit with earthy to irregular fracture and an earthy to dull luster. The samples have a clayey to silty to occasionally gritty texture. Deformed carbonaceous banding is common throughout the samples. Overall they have good cohesion and good to moderate adhesion. Kitchen Lights Unit #5 8 The sandstones are medium grey to medium dark grey with greenish grey to dark greenish grey with light brownish grey hues. Overall they are lower coarse to upper fine to occasionally lower fine to upper coarse grained. The grains in the sample are typically sub spherical to sub discoidal, moderate to moderately well sorted and sub angular to angular to sub rounded. Overall the clasts are easily friable to friable to unconsolidated with a tuffaceous matrix. Typically grain supported and occasional matrix supported clasts. The coals are typically matte to grayish black with occasional dark brownish hues. They are moderately firm to brittle and crumbly, sub bituminous to bituminous with planar to hackly to sub conchoidal fracture. Overall they have a sub resinous to earthy luster with platy to irregular cuttings habit. De-gassing becomes more abundant further down the interval. Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 feet units ppm 7699 53 9611 24 - - - - - 7887 63 8349 20 - - - - - 8001 59 7900 17 - - - - - 8263 55 5511 11 - - - - - 8951 135 21081 35 8 - - - - 8976 70 10984 4 1 - - - - 9006 92 14945 27 6 3 6 4 3 9853 66 10499 31 7 - - - - 9935 51 9283 50 8 - - - - 9971 67 12119 56 9 - - - - 10094 140 27363 55 11 - - - - 10162 66 13886 28 12 - - - - 10331 75 21944 42 10 4 3 - - Tyonek Formation 10335’ to 11827' MD (10156’ to 11648’ TVDSS) Drill Rate (ft/hr) Total Gas (units) Maximum Minimum Average Maximum Minimum Average 159 0.4 47 109 3 18 The Tyonek formation was made up of alternating tuffaceous claystone and siltstone and thin coal bedding planes. A minor amount of gas observed throughout the interval and no hydrocarbon shows. The claystones in this section are typically medium light grey to medium grey with light yellowish grey to dark yellowish grey with medium brownish grey closer to the coal beds. They are soft to friable, with local areas of firm friable. Typical tenacity is pulverulent either abundantly or sparse due to loose ash content, to crumbly to crunchy to malleable. They are generally blocky to amorphous habit with local areas that become flaky when breaking the cuttings apart. The texture is mostly clayey to silty clay with local areas becoming more silty to very fine gritty. Typically dull earthy luster changing between dull greasy to greasy depending on clay content. The clay properties went between good cohesion and good adhesion to pliable. They were mostly massive bedding planes but had local areas and cuttings that would flake into very thin beds to laminae with occasional carbonaceous banding defining the laminated bedding. The coals are typically matte black to grayish black with occasional dark brownish hues in the less Kitchen Lights Unit #5 9 bituminous coal cuttings. The coal cuttings displayed multiple cuttings types, most abundant was blocky to elongated to bladed in localized areas. The cuttings ranged from ~3mm-~2cm in size. They are moderately firm to brittle and crumbly, sub bituminous to bituminous with planar to hackly to sub conchoidal fracture. Overall they have sub resinous to earthy luster. Degassing is associated with the drilled coal cuttings and is apparent on the log. Peaks Depth TG C1 C2 C3 iC4 nC4 iC5 nC5 feet units ppm 10758 109 29346 62 7 - - - - 10879 62 12706 28 7 - - - - 10923 71 30646 76 7 - - - - 10958 63 17329 50 5 - - - - 11146 75 19989 75 28 0 0 1 - 11248 81 26250 93 37 3 5 - - 11495 96 32575 81 17 4 - - - 11582 85 28761 88 22 4 4 6 3 11652 38 12834 105 - - - - - 11763 48 16763 49 4 - - - - 11795 28 9990 39 5 - - - - 11811 24 6405 28 - - - - - 11822 55 14983 107 5 - - - - 3.3 Connection Gases 1unit = 0.05% Methane Equivalent Depth (feet) Gas over background (units) Depth (feet) Gas over background (units) No connection gas observed. 3.4 Trip (Wiper) Gases 50 units = 1% Methane Equivalent Depth Trip to Gas Downtime (feet) (feet) (units) (hours) 7990 5867 20 4 10052 surface 135 72 10203 surface 37 36 Kitchen Lights Unit #5 10 3.5 Sampling Program / Sample Dispatch Set No. of Boxes Type/Purpose Frequency Interval MD Dispatched To A 5 Wet Samples in Whirlpak® bags 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 B 5 Wet Samples in Whirlpak® bags 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 C 5 Wet Samples in Whirlpak® bags 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 D 7 Washed, screened & dried reference samples 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 E 7 Washed, screened & dried reference samples 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 F 7 Washed, screened & dried reference samples 30’-60’ (dependant on ROP) 331’– 11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 G 1 Headspace samples and mud in IsoJars® 500’ 331’-11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 H 1 Mud samples in IsoJars® 1000’ 331’-11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 I 1 Mud gas samples in Isotubes® 1000’ 331’-11827’ Bruce Ganer Furie Operating Alaska 1029 West 3rd Ave. Suite 500 Anchorage, AK 99501 * Sample frequency was locally altered according to drill rate constraints and zones of interest. Ki t c h e n L i g h t s U n i t # 5 11 4 P R E S S U R E / F O R M A T I O N S T R E N G T H D A T A Th e p r i m a r y i n d i c a t o r s u s e d f o r P P G e v a l u a t i o n w e r e g a s t r e n d s re l a t i v e t o m u d w e i g h t ( M W ) a n d e f f e c t i v e c i r c u l a t i n g d e n s i t y ( E CD), including in c r e a s e s i n b a c k g r o u n d g a s ( B G ) , a p p e a r a n c e a n d t r e n d s o f c o n n e c t i o n ga s ( C G ) , m a g n i t u d e s o f t r i p g a s ( T G ) a n d w i p e r g a s ( W G ) . As a r e f e r e n c e , P P G i s c a l c u l a t e d i n i t i a l l y w i t h a f o r m u l a p r ov i d e d b y E p o c h , a n d t h e n m o d i f i e d us i n g t h e i n d i c a t o r s d e s c r i b e d above, and DXC and re s i s t i v i t y ( R E S ) d a t a . T h e f o r m u l a u s e s D X , E C D , a n d B G a s m e a s u r e d b y t o t a l d i t c h g a s : PP G = E C D – ( 0 . 6 - ( ( . 0 0 1 * T L G S U ) + ( 0 . 0 5 * D X ) ) ) Th e f o r m u l a h a s c e r t a i n l i m i t a t i o n s , s u c h t h a t i t d o e s n o t a l l o w f o r a P P G m o r e t h a n 1 P P G l e s s t h a n t h e E C D , a n d T L G S U m u s t b e differentiated fr o m s h o w g a s a n d g a s c a r r i e d f r o m o v e r p r e s s u r e z o n e s , a n d i s d e p e n d e n t o n r e l i a b l e D X d a t a . H o w e v e r , t h e f o r m u l a p r o v e d u s e f ul in helping fo r m u l a t e a P P G r a n g e , w h e n e s t i m a t i n g t r e n d s , a s w i t h D X C d a t a , w i t h d a t a p o i n t s i n s h a l e i n t e r v a l s . 4. 1 P o r e p r e s s u r e e v a l u a t i o n In t e r v a l T o p s Po r e P r e s s u r e ( E M W ) Fo r m a t i o n In t e r v a l Pr i m a r y Li t h o l o g y (% ) Se c o n d a r y Li t h o l o g y (% ) MD (f t ) SS T V D (f t ) Mi n (p p g ) Ma x (p p g ) Tr e n d Trend Indicators Su r f a c e t o t o p o f St e r l i n g Sa n d 7 0 % S l t s t 2 0 % 3 3 0 ’ 1 5 1 ’ 8 . 9 5 9 . 5 E V E N B G St e r l i n g S l t s t 4 5 % S d / S n d s t 2 5 % 5 2 3 1 ’ 5 0 5 2 ’ 9 . 2 1 0 . 1 S L I N C R B G , T G Be l u g a S l t s t 5 0 % C l y s t 3 0 % 7 4 7 6 ’ 7 2 9 7 ’ 1 0 . 1 1 0 . 6 I N C R B G , T G Ty o n e k C l y s t n 6 5 % S l t s t 3 5 % 1 0 3 3 5 ’ 1 0 1 5 6 ’ 1 0 . 6 1 2 . 0 S L I I N C R B G , T G TD C l y s t n 6 0 % S l t s t 4 0 % 1 1 8 2 7 ’ 1 1 6 4 8 ’ - - - - NO T E : C l y s t = C l a y s t o n e / C l a y , S d = S a n d , S l t s t = S i l t s t o n e , S h = S h a l e , S n d s t = S a n d s t o n e , A s h = A s h T u f f Kitchen Lights Unit #5 12 5 DRILLING DATA 5.1 Survey Data Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 0 0 0 0 0 0 0 0 225 0.28 140.17 225 -0.42 0.35 -0.42 0.12 255 0.22 135.6 255 -0.52 0.44 -0.52 0.21 285 0.1 296.69 285 -0.55 0.46 -0.55 1.05 315 0.84 218.49 315 -0.71 0.3 -0.71 2.75 345 1.2 23.25 345 -0.59 0.28 -0.59 6.74 375 1.24 20.48 374.99 0 0.52 0 0.24 392 0.46 47.48 391.99 0.22 0.64 0.22 5.04 405 0.55 353.84 404.99 0.32 0.67 0.32 3.56 422 0.71 52.93 421.99 0.46 0.74 0.46 3.75 435 0.72 346.02 434.98 0.59 0.79 0.59 6.06 452 0.49 9.42 451.98 0.76 0.77 0.76 1.96 465 0.47 258.58 464.98 0.81 0.73 0.81 6.08 482 0.88 67.61 481.98 0.84 0.78 0.84 7.91 495 0.43 202 494.98 0.84 0.86 0.84 9.39 512 0.44 35.04 511.98 0.83 0.87 0.83 5.08 525 0.56 264.78 524.98 0.87 0.84 0.87 6.99 542 0.5 48.77 541.98 0.91 0.81 0.91 5.93 555 0.56 296.85 554.98 0.97 0.79 0.97 6.76 572 0.49 55.93 571.98 1.05 0.78 1.05 5.33 585 0.57 283.77 584.98 1.1 0.76 1.1 7.46 602 0.38 55.39 601.98 1.15 0.73 1.15 5.12 615 0.94 275.94 614.98 1.19 0.66 1.19 9.64 632 0.45 5.76 631.98 1.27 0.53 1.27 6.12 645 0.84 271.09 644.98 1.32 0.44 1.32 7.57 662 0.47 52.73 661.98 1.36 0.37 1.36 7.31 675 0.55 204.82 674.98 1.34 0.38 1.34 7.62 692 0.48 67.89 691.98 1.29 0.41 1.29 5.64 705 0.99 133.63 704.98 1.24 0.55 1.24 6.97 722 0.48 96.47 721.98 1.13 0.72 1.13 3.96 735 0.82 75.02 734.97 1.14 0.87 1.14 3.17 752 0.51 117.13 751.97 1.14 1.05 1.14 3.29 765 0.48 65.88 764.97 1.14 1.15 1.14 3.3 782 0.81 146.81 781.97 1.06 1.28 1.06 5.14 795 0.36 104.83 794.97 0.98 1.37 0.98 4.56 812 0.97 158.86 811.97 0.83 1.48 0.83 4.78 825 0.3 136.02 824.97 0.7 1.54 0.7 5.41 842 0.99 168 841.97 0.53 1.6 0.53 4.43 855 0.18 137.5 854.97 0.4 1.64 0.4 6.46 872 0.82 166.87 871.97 0.26 1.68 0.26 3.94 885 0.32 115.17 884.97 0.16 1.74 0.16 5.16 902 0.88 166.06 901.97 0.01 1.81 0.01 4.25 915 0.21 141.38 914.97 -0.1 1.85 -0.1 5.34 932 0.95 177.59 931.96 -0.27 1.88 -0.27 4.65 945 0.34 147.18 944.96 -0.41 1.9 -0.41 5.22 Kitchen Lights Unit #5 13 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 962 1.13 182.1 961.96 -0.62 1.92 -0.62 5.14 975 0.58 161.1 974.96 -0.81 1.94 -0.81 4.8 992 1.56 189.96 991.96 -1.12 1.93 -1.12 6.4 1005 0.68 185.23 1004.95 -1.37 1.89 -1.37 6.8 1022 1.04 187.25 1021.95 -1.62 1.86 -1.62 2.12 1035 0.57 123.91 1034.95 -1.78 1.9 -1.78 7.19 1052 1.1 186.97 1051.95 -1.99 1.95 -1.99 5.78 1065 0.55 175.94 1064.95 -2.17 1.94 -2.17 4.38 1082 0.84 180.07 1081.95 -2.38 1.95 -2.38 1.73 1095 0.83 122.58 1094.95 -2.52 2.03 -2.52 6.18 1112 0.96 187.33 1111.94 -2.73 2.11 -2.73 5.67 1125 1.08 146.18 1124.94 -2.94 2.17 -2.94 5.58 1142 1.33 197.16 1141.94 -3.26 2.2 -3.26 6.24 1155 0.52 147.9 1154.94 -3.46 2.18 -3.46 8.2 1172 0.61 178.25 1171.94 -3.61 2.23 -3.61 1.81 1185 0.48 76.82 1184.94 -3.67 2.28 -3.67 6.52 1202 0.71 185.39 1201.94 -3.76 2.34 -3.76 5.74 1215 0.3 106.39 1214.94 -3.85 2.37 -3.85 5.51 1232 1.08 192.95 1231.93 -4.02 2.37 -4.02 6.49 1245 0.39 140.2 1244.93 -4.17 2.37 -4.17 6.92 1262 0.74 181.26 1261.93 -4.32 2.41 -4.32 3.03 1275 0.69 71.28 1274.93 -4.38 2.48 -4.38 9.01 1292 0.62 158.82 1291.93 -4.44 2.61 -4.44 5.34 1305 0.47 107.22 1304.93 -4.52 2.69 -4.52 3.79 1322 1.25 187.03 1321.93 -4.72 2.73 -4.72 7.38 1335 0.65 175.77 1334.93 -4.94 2.72 -4.94 4.81 1352 1.17 185.24 1351.93 -5.21 2.71 -5.21 3.17 1365 0.64 161.72 1364.92 -5.41 2.72 -5.41 4.9 1382 1.68 190.11 1381.92 -5.74 2.71 -5.74 6.81 1395 0.87 179.52 1394.92 -6.03 2.67 -6.03 6.46 1412 1.81 190.33 1411.91 -6.42 2.63 -6.42 5.7 1425 0.86 170.38 1424.91 -6.72 2.61 -6.72 8.03 1442 1.51 179.73 1441.9 -7.07 2.63 -7.07 3.98 1455 0.61 150.83 1454.9 -7.3 2.66 -7.3 7.84 1472 1.25 180.6 1471.9 -7.57 2.71 -7.57 4.6 1485 0.73 182.77 1484.9 -7.79 2.7 -7.79 4.01 1502 2.24 190.96 1501.89 -8.22 2.63 -8.22 8.95 1515 1.34 194.69 1514.89 -8.62 2.55 -8.62 6.98 1532 1.99 190.12 1531.88 -9.1 2.44 -9.1 3.9 1545 1.01 168.83 1544.87 -9.44 2.43 -9.44 8.55 1562 1.49 177.14 1561.87 -9.81 2.47 -9.81 3.01 1575 0.76 155.03 1574.87 -10.05 2.51 -10.05 6.43 1592 1.63 184.08 1591.86 -10.4 2.54 -10.4 6.08 1605 0.98 148.88 1604.86 -10.68 2.59 -10.68 7.72 1622 1.31 175.73 1621.86 -10.99 2.68 -10.99 3.65 1635 0.56 127.54 1634.85 -11.18 2.74 -11.18 7.89 1652 1.25 181.82 1651.85 -11.42 2.8 -11.42 6.05 1665 0.07 270.41 1664.85 -11.56 2.78 -11.56 9.62 1682 1.26 186.56 1681.85 -11.74 2.75 -11.74 7.38 Kitchen Lights Unit #5 14 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 1695 0.37 180.72 1694.85 -11.93 2.74 -11.93 6.87 1712 0.91 157.82 1711.85 -12.11 2.79 -12.11 3.45 1725 0.56 94.6 1724.85 -12.21 2.89 -12.21 6.35 1742 0.97 185.16 1741.85 -12.36 2.96 -12.36 6.62 1755 0.28 95.38 1754.85 -12.47 2.98 -12.47 7.76 1772 0.56 162.06 1771.84 -12.55 3.05 -12.55 3.04 1785 0.31 300.45 1784.84 -12.6 3.04 -12.6 6.29 1802 1.27 175.27 1801.84 -12.76 3.01 -12.76 8.65 1815 0.42 196.75 1814.84 -12.95 3.01 -12.95 6.87 1832 0.6 166.66 1831.84 -13.1 3.01 -13.1 1.86 1845 0.51 8.06 1844.84 -13.11 3.04 -13.11 8.39 1862 0.95 178.04 1861.84 -13.17 3.05 -13.17 8.56 1875 0.84 131.99 1874.84 -13.34 3.13 -13.34 5.44 1892 0.61 181.9 1891.84 -13.52 3.22 -13.52 3.8 1905 0.88 105.67 1904.84 -13.61 3.31 -13.61 7.26 1922 0.55 157.79 1921.84 -13.72 3.47 -13.72 4.09 1935 0.36 50.83 1934.84 -13.76 3.52 -13.76 5.69 1952 1.06 193.59 1951.83 -13.88 3.53 -13.88 8.02 1965 0.73 150.67 1964.83 -14.06 3.54 -14.06 5.56 1982 0.37 131.19 1981.83 -14.2 3.63 -14.2 2.36 1995 1.15 138.58 1994.83 -14.32 3.75 -14.32 6.03 2012 0.77 180 2011.83 -14.56 3.86 -14.56 4.51 2025 1.24 146.83 2024.83 -14.77 3.94 -14.77 5.61 2042 0.33 130.99 2041.83 -14.95 4.08 -14.95 5.45 2055 0.9 183.62 2054.82 -15.08 4.1 -15.08 5.75 2072 0.39 153.91 2071.82 -15.27 4.12 -15.27 3.49 2085 1.16 173.22 2084.82 -15.44 4.15 -15.44 6.17 2102 0.74 199.99 2101.82 -15.71 4.13 -15.71 3.53 2115 1.06 194.36 2114.82 -15.91 4.08 -15.91 2.55 2132 0.48 101.59 2131.82 -16.07 4.11 -16.07 6.97 2145 1.08 173.94 2144.82 -16.21 4.17 -16.21 8 2162 0.8 199.16 2161.81 -16.48 4.15 -16.48 2.9 2175 1.18 187.8 2174.81 -16.69 4.1 -16.69 3.28 2192 0.28 97.49 2191.81 -16.87 4.12 -16.87 7.14 2205 0.6 242.8 2204.81 -16.91 4.09 -16.91 6.5 2222 0.42 151.85 2221.81 -17 4.04 -17 4.34 2235 1.22 223.83 2234.81 -17.15 3.97 -17.15 8.93 2252 0.28 198.11 2251.81 -17.32 3.83 -17.32 5.74 2265 0.94 249.57 2264.81 -17.38 3.72 -17.38 6.13 2282 0.53 96.38 2281.81 -17.44 3.67 -17.44 8.43 2295 0.62 192.03 2294.81 -17.52 3.71 -17.52 6.57 2312 0.56 182.81 2311.8 -17.69 3.69 -17.69 0.66 2325 1.28 242.43 2324.8 -17.82 3.56 -17.82 8.52 2342 0.47 279.84 2341.8 -17.9 3.32 -17.9 5.59 2355 1.01 299.63 2354.8 -17.83 3.17 -17.83 4.54 2372 0.59 148.68 2371.8 -17.83 3.08 -17.83 9.13 2385 0.56 36.57 2384.8 -17.84 3.16 -17.84 7.34 2402 0.52 177.45 2401.8 -17.85 3.21 -17.85 5.99 2415 0.44 69.2 2414.8 -17.89 3.26 -17.89 5.99 Kitchen Lights Unit #5 15 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 2432 0.26 209.01 2431.8 -17.9 3.3 -17.9 3.88 2445 0.26 119.8 2444.8 -17.94 3.31 -17.94 2.81 2462 0.37 114.63 2461.8 -17.98 3.4 -17.98 0.67 2475 0.39 64.83 2474.8 -17.98 3.47 -17.98 2.47 2492 0.73 144.17 2491.8 -18.04 3.59 -18.04 4.48 2505 0.49 135.29 2504.8 -18.15 3.68 -18.15 1.98 2522 0.42 152.63 2521.8 -18.26 3.76 -18.26 0.9 2535 0.3 69.85 2534.8 -18.29 3.81 -18.29 3.73 2552 0.19 116.77 2551.8 -18.29 3.88 -18.29 1.29 2565 0.39 65.18 2564.8 -18.28 3.94 -18.28 2.38 2582 0.61 109.23 2581.79 -18.28 4.08 -18.28 2.51 2595 0.39 104.75 2594.79 -18.32 4.18 -18.32 1.72 2612 0.52 163.62 2611.79 -18.4 4.26 -18.4 2.71 2625 0.03 28.44 2624.79 -18.46 4.28 -18.46 4.17 2642 0.34 93.8 2641.79 -18.46 4.33 -18.46 1.93 2655 0.52 63.72 2654.79 -18.43 4.42 -18.43 2.18 2672 0.71 90.65 2671.79 -18.4 4.6 -18.4 2 2685 0.53 104.85 2684.79 -18.42 4.74 -18.42 1.81 2702 0.68 136.72 2701.79 -18.51 4.88 -18.51 2.13 2715 0.22 111.06 2714.79 -18.58 4.96 -18.58 3.78 2732 0.28 90.46 2731.79 -18.59 5.03 -18.59 0.63 2745 0.28 37.27 2744.79 -18.56 5.08 -18.56 1.93 2762 0.66 102.16 2761.79 -18.55 5.2 -18.55 3.52 2775 0.52 116.31 2774.79 -18.59 5.33 -18.59 1.55 2805 1.13 129.09 2804.79 -18.84 5.68 -18.84 2.11 2942 0.53 138.11 2941.77 -20.16 7.15 -20.16 0.45 3036 0.3 156.59 3035.77 -20.71 7.53 -20.71 0.27 3128 0.31 141.05 3127.77 -21.12 7.79 -21.12 0.09 3223 0.12 175.56 3222.77 -21.43 7.96 -21.43 0.23 3318 0.22 147.73 3317.77 -21.68 8.06 -21.68 0.14 3413 0.09 75.67 3412.77 -21.82 8.24 -21.82 0.23 3508 0.22 159.08 3507.76 -21.97 8.37 -21.97 0.24 3603 0.04 199.72 3602.76 -22.17 8.43 -22.17 0.2 3696 0.14 112.51 3695.76 -22.25 8.52 -22.25 0.15 3790 0.07 12.75 3789.76 -22.24 8.63 -22.24 0.17 3884 0.06 64.17 3883.76 -22.16 8.69 -22.16 0.06 3977 0.23 150.07 3976.76 -22.3 8.83 -22.3 0.26 4072 0.1 121.1 4071.76 -22.51 9 -22.51 0.16 4167 0.13 115.83 4166.76 -22.6 9.16 -22.6 0.03 4260 0.19 125.1 4259.76 -22.73 9.38 -22.73 0.07 4353 0.3 137.89 4352.76 -23 9.67 -23 0.14 4447 0.25 109.93 4446.76 -23.25 10.02 -23.25 0.15 4542 0.03 20.54 4541.76 -23.3 10.23 -23.3 0.26 4637 0.15 198.2 4636.76 -23.4 10.19 -23.4 0.19 4729 0.04 234.32 4728.76 -23.54 10.13 -23.54 0.13 4824 0.31 243.52 4823.76 -23.67 9.87 -23.67 0.28 4918 0.29 276.85 4917.76 -23.76 9.4 -23.76 0.19 5011 0.28 249 5010.76 -23.81 8.96 -23.81 0.15 5105 0.3 278.37 5104.76 -23.86 8.5 -23.86 0.16 Kitchen Lights Unit #5 16 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 5200 0.41 278.95 5199.75 -23.77 7.92 -23.77 0.11 5295 0.28 298.72 5294.75 -23.6 7.38 -23.6 0.18 5388 0.36 271.62 5387.75 -23.49 6.89 -23.49 0.18 5481 0.22 244.07 5480.75 -23.56 6.44 -23.56 0.21 5575 0.22 255.72 5574.75 -23.68 6.1 -23.68 0.05 5670 0.19 163.44 5669.75 -23.88 5.98 -23.88 0.31 5764 0.1 159.85 5763.75 -24.1 6.05 -24.1 0.1 5857 0.15 125.26 5856.75 -24.25 6.18 -24.25 0.1 5953 0.4 178.19 5952.75 -24.66 6.29 -24.66 0.35 6045 0.31 174.53 6044.75 -25.23 6.33 -25.23 0.1 6140 0.29 211.87 6139.74 -25.69 6.23 -25.69 0.2 6232 0.33 237.97 6231.74 -26.03 5.88 -26.03 0.16 6326 0.4 246.49 6325.74 -26.31 5.35 -26.31 0.09 6420 0.2 228.48 6419.74 -26.55 4.92 -26.55 0.24 6514 0.21 212.31 6513.74 -26.8 4.71 -26.8 0.06 6608 0.35 202.02 6607.74 -27.2 4.51 -27.2 0.16 6701 0.14 191.83 6700.74 -27.58 4.39 -27.58 0.23 6797 0.22 231.64 6796.74 -27.81 4.21 -27.81 0.15 6890 0.18 293.69 6889.74 -27.86 3.94 -27.86 0.23 6983 0.22 278.5 6982.74 -27.78 3.63 -27.78 0.07 7079 0.68 307.57 7078.73 -27.4 3 -27.4 0.52 7173 0.6 298.51 7172.73 -26.83 2.13 -26.83 0.14 7264 0.46 332.2 7263.72 -26.28 1.55 -26.28 0.37 7360 0.52 329.51 7359.72 -25.57 1.15 -25.57 0.08 7454 0.65 334.34 7453.72 -24.72 0.7 -24.72 0.14 7548 0.42 331.87 7547.71 -23.94 0.31 -23.94 0.25 7643 0.49 311.69 7642.71 -23.36 -0.16 -23.36 0.18 7736 0.74 335.6 7735.7 -22.55 -0.71 -22.55 0.38 7830 0.8 326.95 7829.69 -21.45 -1.32 -21.45 0.14 7924 0.89 342.92 7923.68 -20.2 -1.89 -20.2 0.27 8018 0.7 337.17 8017.68 -18.97 -2.33 -18.97 0.22 8113 0.81 347.58 8112.67 -17.78 -2.7 -17.78 0.19 8208 0.85 338.18 8207.66 -16.46 -3.1 -16.46 0.15 8303 0.74 350.36 8302.65 -15.2 -3.47 -15.2 0.21 8398 0.81 3.31 8397.64 -13.92 -3.53 -13.92 0.2 8493 0.95 5.97 8492.63 -12.46 -3.41 -12.46 0.16 8587 0.9 1.07 8586.62 -10.94 -3.32 -10.94 0.1 8679 0.81 349.74 8678.61 -9.57 -3.42 -9.57 0.21 8775 0.98 357.15 8774.59 -8.08 -3.58 -8.08 0.21 8867 0.76 5.4 8866.58 -6.68 -3.56 -6.68 0.28 8961 1.39 348.5 8960.57 -4.95 -3.73 -4.95 0.74 9055 1.01 351.9 9054.55 -3.01 -4.08 -3.01 0.41 9150 1.11 350.88 9149.53 -1.27 -4.34 -1.27 0.11 9244 1.33 346.81 9243.51 0.69 -4.73 0.69 0.24 9337 1.35 341.05 9336.48 2.78 -5.34 2.78 0.15 9431 1.31 340.14 9430.46 4.84 -6.06 4.84 0.05 9526 1.51 348.2 9525.43 7.09 -6.69 7.09 0.3 9622 1.97 348.65 9621.38 9.95 -7.27 9.95 0.48 9714 2.02 339.56 9713.33 13.02 -8.15 13.02 0.35 Kitchen Lights Unit #5 17 Measured Depth (ft) Incl. (o) Azim. (o) True Vertical Depth (ft) Latitude (ft) N(+), S(-) Departure (ft) E(+), W(-) Vertical Section (ft) Dogleg Rate (o/100ft) 9809 1.79 343.71 9808.28 16.02 -9.15 16.02 0.28 9904 2.25 354.12 9903.22 19.29 -9.76 19.29 0.62 9998 2.64 356.58 9997.13 23.29 -10.08 23.29 0.43 10092 2.42 350.96 10091.04 27.41 -10.52 -32749 0.35 10190 2.23 348.07 10188.96 31.31 -11.24 -32745 0.23 10284 2.57 351.36 10282.88 35.18 -11.93 -32741 0.39 10376 2.89 352.78 10374.77 39.52 -12.53 -32737 0.36 10470 3.2 351.72 10468.64 44.47 -13.21 -32732 0.34 10563 3.39 352.01 10561.48 49.76 -13.96 -32726 0.2 10657 3.24 351.75 10655.33 55.14 -14.73 -32721 0.16 10753 3.09 351.05 10751.18 60.37 -15.52 -32715 0.16 10844 2.76 354.24 10842.06 64.97 -16.12 -32711 0.4 10940 2.81 355.56 10937.95 69.62 -16.54 -32706 0.08 11033 2.55 353.02 11030.85 73.94 -16.96 -32702 0.31 11129 2.57 357.63 11126.75 78.21 -17.31 -32698 0.22 11221 2.35 356.63 11218.67 82.16 -17.51 -32694 0.24 11317 2.24 0.5 11314.59 86 -17.61 -32690 0.2 11410 2.43 355.46 11407.51 89.79 -17.75 -32686 0.3 11504 2.8 353.41 11500.73 157.29 -32.49 199.11 0.04 11598 2.8 353.68 11594.62 161.85 -33.01 203.67 0.01 11694 2.63 354.48 11690.51 166.36 -33.47 208.19 0.18 11771 2.67 351.98 11767.43 169.89 -33.89 211.72 0.16 11827 2.67 351.98 11824.05 109.24 -19.94 0 Ki t c h e n L i g h t s U n i t # 5 18 5. 2 B i t R e c o r d BH A Bi t # * Si z e Ma k e Ty p e / Se r i a l # TF A / Je t s De p t h In MD To t a l Fo o t a g e Bi t Hr s . Av g . RO P (f t / h r ) Av g . WO B (K l b s ) Av g . RP M Avg. PP (psi) Wear 1 1 1 3 . 5 ” H u g h e s MX L - 1 X / 52 3 2 0 7 2 3x 1 8 , 1x 1 6 33 0 ’ 2 8 4 0 4 3 . 8 1 0 0 . 7 3 . 5 1 1 8 1 1 1 7 1 - 1 - N G - T D 3 2 9 . 8 7 5 ” H C C DP 6 0 4 / 70 3 7 8 1 4 6 X 1 4 2 8 4 0 ’ 7 2 1 2 ’ 7 8 . 6 7 1 4 7 . 8 8 8 3 1 7 6 2 8 - 8 - L T - A - X - C T - P R 5 3 9 . 8 7 5 ” H C C MX - 1 / 52 8 1 6 0 3 X 1 6 1 0 0 5 2 ’ 1 5 2 ’ 1 5 . 5 2 9 . 7 3 2 2 . 4 1 2 2 2 9 2 1 2-2-WT-A-2-0-NO-PR 6 4 9 . 8 7 5 ” H C C DP 6 0 4 / 71 4 3 1 4 6 X 1 4 1 0 2 0 3 ’ 1 6 2 4 ’ 3 8 . 2 5 4 8 . 8 9 . 7 1 3 5 2 7 1 1 5. 3 M u d R e c o r d Co n t r a c t o r : H a l l i b u r t o n - B a r o i d Mu d T y p e : S p u d M u d Da t e De p t h MW (p p g ) EC D (p p g ) VI S (s / q t ) PV YP Ge l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) pH Cl (ml/l) Ca (ml/l) 9/ 0 4 / 2 0 1 4 8 6 0 8 . 9 5 9 . 5 3 9 8 2 6 4 0 1 7 / 2 9 / 3 6 6 . 2 2 / 0 4 . 3 0 / 9 5 . 4 1 . 5 9 . 1 1 8 0 0 7 0 9/ 0 5 / 2 0 1 4 1 9 9 8 9 . 2 5 9 . 3 8 7 5 2 6 2 9 1 3 / 1 7 / 2 1 5 . 7 2 / 0 7 . 2 0 / 9 2 . 5 1 . 5 9 . 1 1 0 0 0 6 0 9/ 0 6 / 2 0 1 4 2 8 4 0 9 . 2 5 9 . 2 5 7 2 2 8 2 9 1 3 / 2 1 / 2 5 5 . 6 2 / 0 6 . 7 0 / 9 3 2 . 0 9 . 0 1 0 0 0 6 0 9/ 0 7 / 2 0 1 4 2 8 4 0 9 . 4 0 9 . 4 0 7 0 2 6 2 9 1 1 / 2 1 / 2 6 5 . 6 2 / 0 6 . 7 0 / 9 3 2 . 0 8 . 5 1 0 0 0 6 0 9/ 0 8 / 2 0 1 4 2 8 4 0 9 . 4 5 9 . 4 5 1 2 0 2 3 5 2 1 5 / 2 5 / 3 0 7 . 0 2 / 0 7 . 1 0 / 9 2 . 6 2 . 0 7 . 5 1 2 0 0 1 6 0 0 9/ 0 9 / 2 0 1 4 2 8 4 0 9 . 5 9 . 5 7 2 2 5 2 6 1 1 / 1 4 / 2 1 6 . 0 2 / 0 7 . 3 0 / 9 2 . 4 2 . 0 9 . 3 1 4 0 0 1 3 0 0 9/ 1 0 / 2 0 1 4 2 8 4 0 9 . 5 9 . 5 6 6 2 5 2 4 1 0 / 1 4 / 2 0 6 . 3 2 / 0 7 . 3 0 / 9 2 . 4 2 . 0 9 . 0 1 3 0 0 1 1 0 0 Ab b r e v i a t i o n s MW = M u d W e i g h t G e l s = G e l S t r e n g t h S d = S a n d c o n t e n t E C D = E f f e c t i v e C i r c u l a t i n g D e n s i t y FL = F l u i d L o s s C l = C h l o r i d e s V I S = F u n n e l V i s c o s i t y F C = F i l t e r C a k e Ca = H a r d n e s s C a l c i u m P V = P l a s t i c V i s c o s i t y S o l s = S o l i d s O / W = O i l t o W a t e r r a t i o Ki t c h e n L i g h t s U n i t # 5 19 Mu d R e c o r d ( C o n t ) Co n t r a c t o r : H a l l i b u r t o n - B a r o i d Mu d T y p e : K C l / P o l y m e r Da t e De p t h MW (p p g ) EC D (p p g ) VI S (s / q t ) PV YP Ge l s FL (c c ) FC So l s (% ) O/ W Ra t i o Sd (% ) pH Cl (ml/l) Ca (ml/l) 9/ 1 1 / 2 0 1 4 2 8 4 0 8 . 9 8 . 9 3 8 8 1 2 5 / 7 / 8 9 . 0 1 / 0 2 . 1 0 / 9 7 . 0 0 . 0 5 1 0 . 2 9 1 0 0 1 0 0 0 9/ 1 2 / 2 0 1 4 2 8 4 0 8 . 9 9 . 0 4 4 1 1 0 1 3 5 / 7 / 1 0 7 . 0 1 / 0 3 . 0 0 / 9 6 . 0 0 . 0 5 1 0 . 3 1 0 5 0 0 8 0 0 9/ 1 3 / 2 0 1 4 4 5 3 3 9 . 2 5 - 4 1 9 1 7 6 / 8 / 9 4 . 6 1 / 0 5 . 4 0 . 0 / 9 3 . 6 1 . 0 0 1 0 . 6 1 1 0 0 4 4 0 9/ 1 4 / 2 0 1 4 6 7 7 5 9 . 9 0 - 4 7 1 2 2 7 1 0 / 1 5 / 1 8 4 . 5 1 / 0 1 0 . 7 0 . 0 / 8 8 . 5 1 . 0 0 9 . 6 1 0 0 0 0 4 0 0 9/ 1 5 / 2 0 1 4 8 3 1 5 1 0 . 4 - 4 7 1 1 3 1 1 0 / 1 5 / 1 8 6 . 0 ½ 1 1 . 2 0 . 0 / 8 8 . 0 1 . 0 0 9 . 0 9 0 0 0 6 0 0 9/ 1 6 / 2 0 1 4 9 2 8 0 1 0 . 8 - 5 3 1 8 4 1 1 5 / 1 7 / 1 8 8 . 0 ½ 1 4 . 2 0 . 0 / 8 5 . 0 1 . 0 0 8 . 0 9 1 0 0 7 6 0 9/ 1 7 / 2 0 1 4 9 8 9 3 1 1 . 4 - 6 6 2 0 4 4 1 4 / 2 4 / 2 9 8 . 0 ½ 1 6 . 2 0 . 0 / 8 3 . 0 1 . 0 0 8 . 8 1 0 0 0 0 6 0 0 9/ 1 8 / 2 0 1 4 1 0 0 5 2 1 1 . 3 - 5 9 2 0 4 2 1 3 / 2 4 / 2 7 8 . 5 ½ 1 5 . 7 0 . 0 / 8 3 . 5 1 . 0 0 9 . 0 1 0 0 0 0 5 0 0 9/ 1 9 / 2 0 1 4 1 0 0 5 2 1 1 . 4 - 7 0 2 0 4 7 1 6 / 2 7 / 3 3 6 . 6 ½ 1 6 . 2 0 . 0 / 8 3 . 0 1 . 0 0 9 . 4 1 0 0 0 0 2 4 0 9/ 2 0 / 2 0 1 4 1 0 1 0 7 1 1 . 2 1 1 . 5 3 7 0 2 3 3 7 1 5 / 2 4 / 2 8 7 . 0 ½ 1 4 . 2 0 . 0 / 8 5 . 0 1 . 0 0 8 . 1 1 0 5 0 0 3 8 0 9/ 2 1 / 2 0 1 4 1 0 1 5 3 1 1 . 4 1 1 . 7 5 4 9 1 7 3 2 9 / 1 6 / 2 2 6 . 2 ½ 1 4 . 1 0 . 0 / 8 5 . 0 0 . 5 0 8 . 8 1 1 5 0 0 5 6 0 9/ 2 2 / 2 0 1 4 1 0 2 0 3 1 1 . 9 1 2 . 0 8 5 4 2 0 2 2 4 / 1 0 / 1 4 2 . 0 ½ 1 6 . 1 0 . 0 / 8 3 . 0 0 . 5 0 9 . 3 1 2 0 0 0 3 6 0 9/ 2 3 / 2 0 1 4 1 0 4 9 0 1 1 . 9 1 2 . 1 3 5 0 1 9 2 2 5 / 1 2 / 1 7 3 . 2 ½ 1 6 . 1 0 . 0 / 8 3 . 0 1 . 0 0 8 . 8 1 1 0 0 0 4 0 0 9/ 2 4 / 2 0 1 4 1 1 2 9 0 1 1 . 9 1 2 . 1 0 4 9 2 0 1 9 5 / 1 1 / 1 5 3 . 2 ½ 1 7 . 1 0 . 0 / 8 2 . 0 1 . 0 0 9 . 0 1 2 0 0 0 3 2 0 9/ 2 5 / 2 0 1 4 1 1 8 2 7 1 1 . 9 1 2 . 0 4 5 5 2 2 1 9 7 / 1 5 / 1 8 3 . 0 ½ 1 8 . 2 0 . 0 / 8 1 . 0 0 . 5 0 9 . 2 1 1 0 0 0 3 6 0 Ab b r e v i a t i o n s MW = M u d W e i g h t G e l s = G e l S t r e n g t h S d = S a n d c o n t e n t E C D = E f f e c t i v e C i r c u l a t i n g D e n s i t y FL = F l u i d L o s s C l = C h l o r i d e s V I S = F u n n e l V i s c o s i t y F C = F i l t e r C a k e Ca = H a r d n e s s C a l c i u m P V = P l a s t i c V i s c o s i t y S o l s = S o l i d s O / W = O i l t o W a t e r r a t i o Kitchen Lights Unit #5 20 6 DAILY REPORTS Furie Operating Alaska, LLC DAILY WELLSITE REPORT KLU #5 REPORT FOR Furie DATE Sep 04, 2014 DEPTH 863 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 330 24 HOUR FOOTAGE 533 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 13.5" 330 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 211.7 @ 334 3.6 @ 481 136.3 39.99 FT/HR SURFACE TORQUE 4566 @ 814 1959 @ 510 2860.5 3018.94 AMPS WEIGHT ON BIT 17 @ 796 0 @ 811 1.8 3.93 KLBS ROTARY RPM 81 @ 677 47 @ 367 69.0 73.82 RPM PUMP PRESSURE 1153 @ 863 262 @ 368 905.5 1153.28 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 7 @ 460 0 @ 369 3.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 106.36 @ 460 1 @ 678 56.3 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 5u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 90% Sand 10% Conglomeratic sand PRESENT LITHOLOGY 90% Sand 10% Conglomeratic sand DAILY ACTIVITY SUMMARY Finish building spud mud. Pick up BHA and begin drilling CANRIG PERSONNEL ON BOARD 4 DAILY COST $5,100.00 (EST) REPORT BY Dubowski Furie Operating Alaska, LLC DAILY WELLSITE REPORT KLU #5 REPORT FOR DATE Sep 05, 2014 DEPTH 2004 PRESENT OPERATION Drilling TIME 00:28:29 YESTERDAY 863 24 HOUR FOOTAGE 1141 CASING INFORMATION 30" @ 400' 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 13.5" Hughes MXL-1X 5232072 3x18, 1x16 330 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 231.2 @ 1046 0.5 @ 1882 84.4 57.38954 FT/HR SURFACE TORQUE 6862 @ 1311 2088 @ 1036 3606.9 2722.16821 AMPS WEIGHT ON BIT 42 @ 1030 0 @ 1997 2.4 4.95373 KLBS ROTARY RPM 161 @ 1668 55 @ 1030 126.3 143.20302 RPM PUMP PRESSURE 1332 @ 1175 682 @ 1507 1035.0 942.55170 PSI DRILLING MUD REPORT DEPTH N/A MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 10 @ 1863 0 @ 1967 4.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2151 @ 1863 @ 1327 237.8 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1u PENTANE (C-5) @ @ HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 80% Sand 20% conglomeratic sand PRESENT LITHOLOGY 100% sand DAILY ACTIVITY SUMMARY Continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR DATE Sep 06, 2014 DEPTH 2840 PRESENT OPERATION Running Wireline TIME 23:59 YESTERDAY 2004 24 HOUR FOOTAGE 836 CASING INFORMATION 30" @ 400' 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 13.5" Hughes MXL-1X 5232072 3x18, 1x16 330' 2840' 2510' 43:50 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 391.3 @ 2303 2.6 @ 2256 100.5 0.00000 FT/HR SURFACE TORQUE 5616 @ 2069 2448 @ 2032 2829.5 2678.23267 AMPS WEIGHT ON BIT 34 @ 2459 0 @ 2197 6.2 0.00000 KLBS ROTARY RPM 156 @ 2617 84 @ 2348 138.3 144.80769 RPM PUMP PRESSURE 1791 @ 2690 942 @ 2004 1363.8 1742.77649 PSI DRILLING MUD REPORT DEPTH N/A MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 9 @ 2691 0 @ 2449 2.1 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 2481 @ 2691 2 @ 2790 457.8 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 80% Sand, 10% Conglomeratic sand, 10% Tuffaceous Siltstone PRESENT LITHOLOGY 60% Sand, 30% Tuffaceous Siltstone, 10% Shale DAILY ACTIVITY SUMMARY Continue drilling down to TD. Circulate hole clean and POOH. L/D BHA and R/U SLB wireline. Running wireline at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 07, 2014 DEPTH 2840 PRESENT OPERATION Prep to cement casing TIME 23:59 YESTERDAY 2840 24 HOUR FOOTAGE 0 CASING INFORMATION 30" @ 331' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2840 (9/6/2014) MW 9.25 VIS 72 PV 28 YP 29 FL 5.6 Gels 13/21/25 CL- 1000 FC 2/0 SOL 6.7 SD 2.0 OIL 0/93 MBL 15 pH 9 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 1u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY SUMMARY Finish running wireline and R/D SLB tools. P/U cleanout BHA and RIH. Circulate hole clean then POOH. L/D cleanout BHA and P/U casing tools. On bottom prepping to cement casing. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 08, 2014 DEPTH 2840 PRESENT OPERATION N/U BOP TIME 23:59 YESTERDAY 2840 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75 @ 2840' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2840 (9/7/2014) MW 9.25 VIS 70 PV 26 YP 29 FL 5.6 Gels 11/21/26 CL- 1000 FC 2/0 SOL 6.7 SD 2.0 OIL 0/93 MBL 15 pH 8.5 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY SUMMARY Finished circulating with casing and R/U cementing equipment. Cement casing and R/D cementing equipment. N/U BOP's while building mud for next hole section. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 09, 2014 DEPTH 2840 PRESENT OPERATION N/U BOP TIME 23:59 YESTERDAY 2840 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75 @ 2840' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2840 MW 9.50 VIS 72 PV 25 YP 26 FL 6.0 Gels 11/14/21 CL- 1400 FC 2/0 SOL 7.3 SD 2.0 OIL 0/92.4 MBL 15 pH 9.3 Ca+ 1300 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY SUMMARY Continue N/U BOP's CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 10, 2014 DEPTH 2840 PRESENT OPERATION N/U BOP TIME 23:59 YESTERDAY 2840 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75 @ 2840' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2840 (9/9/2014) MW 9.50 VIS 72 PV 25 YP 26 FL 6.0 Gels 11/14/21 CL- 1400 FC 2/0 SOL 7.3 SD 2.0 OIL 0/92.4 MBL 15 pH 9.3 Ca+ 1300 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY SUMMARY Continue N/U BOP's CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 11, 2014 DEPTH 2840 PRESENT OPERATION Testing BOP's TIME 23:59 YESTERDAY 2840 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75 @ 2840' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 2840 (9/10/2014) MW 9.50 VIS 66 PV 25 YP 24 FL 6.3 Gels 10/14/20 CL- 1300 FC 2/0 SOL 7.3 SD 2.0 OIL 0/92.4 MBL 15 pH 9.0 Ca+ 1100 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No New Footage Drilled DAILY ACTIVITY SUMMARY Finish N/U BOP's, R/U testing equipment and test BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 12, 2014 DEPTH 2860 PRESENT OPERATION Performing FIT TIME 20:07:02 YESTERDAY 2840 24 HOUR FOOTAGE 20 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 2840' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 254.8 @ 2844 117.0 @ 2846 188.0 194.04002 FT/HR SURFACE TORQUE 3783 @ 2849 2678 @ 2840 3448.7 3181.41943 AMPS WEIGHT ON BIT 3 @ 2843 0 @ 2854 1.1 2.65378 KLBS ROTARY RPM 144 @ 2840 74 @ 2849 90.3 82.45149 RPM PUMP PRESSURE 1742 @ 2840 1001 @ 2843 1156.4 1054.62537 PSI DRILLING MUD REPORT DEPTH 2840 (09/11/2014) MW 8.9 VIS 38 PV 8 YP 12 FL 9.0 Gels 5/7/8 CL- 9100 FC 1/0 SOL 2.1 SD 0.05 OIL 0/97.0 MBL 0.5 pH 10.2 Ca+ 1000 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ 2841 1 @ 2856 1.3 TRIP GAS 1u CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 111 @ 2846. 57 @ 2860. 88 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 90% Sand 10% Tuffaceous Siltstone PRESENT LITHOLOGY 90% Sand 10% Tuffaceous Siltstone DAILY ACTIVITY SUMMARY Finish testing BOP's and R/D testing Equipment. P/U BHA and RIH. Swap out spud mud for KCl/polymer. Tag cement, R/U and test casing for 30 min. R/D testing equipment and drillout cement and 20' of new hole. Performing FIT at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 13, 2014 DEPTH 4502 PRESENT OPERATION Drilling TIME 23:56:11 YESTERDAY 2860 24 HOUR FOOTAGE 1642 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 6x14 2840' 1662' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 401.2 @ 4317 1.2 @ 2860 210.6 78.11966 FT/HR SURFACE TORQUE 4868 @ 4324 2573 @ 3089 3671.1 3593.41943 AMPS WEIGHT ON BIT 13 @ 4407 0 @ 3279 4.9 8.09404 KLBS ROTARY RPM 85 @ 3939 58 @ 3005 72.0 78.11983 RPM PUMP PRESSURE 1251 @ 4268 927 @ 2860 1093.9 1204.43994 PSI DRILLING MUD REPORT DEPTH 4533 MW 9.25 VIS 41 PV 9 YP 17 FL 4.6 Gels 6/8/9 CL- 11000 FC 1/0 SOL 5.4 SD 1.00 OIL 0/93.6 MBL 1.0 pH 10.6 Ca+ 440 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 7 @ 3744 0 @ 4431 1.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 1460 @ 3744 0 @ 3396 206.2 CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 2u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% Sand 30% Tuffaceous Siltstone 10% Tuffaceous Claystone PRESENT LITHOLOGY 90% Sand 10% Tuffaceous Siltstone DAILY ACTIVITY SUMMARY Finish performing FIT and POOH to replace MWD tool. L/D malfunctioning MWD tool and M/U new BHA. RIH and drill ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 14, 2014 DEPTH 6981 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 4502 24 HOUR FOOTAGE 2479 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 6x14 2840' 4141' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 476.4 @ 6807 0.5 @ 4595 185.2 112.10016 FT/HR SURFACE TORQUE 6542 @ 6786 3031 @ 4970 4419.9 4969.51563 AMPS WEIGHT ON BIT 16 @ 6124 0 @ 5388 7.1 8.88459 KLBS ROTARY RPM 110 @ 6774 46 @ 6773 74.1 82.22507 RPM PUMP PRESSURE 1736 @ 6959 946 @ 4857 1440.6 1678.59766 PSI DRILLING MUD REPORT DEPTH 4533 (9/13/2014) MW 9.25 VIS 41 PV 9 YP 17 FL 4.6 Gels 6/8/9 CL- 11000 FC 1/0 SOL 5.4 SD 1.0 OIL 0/93.6 MBL 1.0 pH 10.6 Ca+ 440 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 22 @ 6650 0 @ 6591 2.6 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 4682 @ 6686 0 @ 5660 330.1 CONNECTION GAS HIGH ETHANE (C-2) 50 @ 6548 0 @ 6689 2.4 AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Siltstone 30% Tuffaceous sandstone 20% Tuffaceous Claystone 10% Sand PRESENT LITHOLOGY 40% Tuffaceous Sandstone 30% Tuffaceous siltstone 20% sand 10% Tuffaceous claystone DAILY ACTIVITY SUMMARY Continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 15, 2014 DEPTH 8274 PRESENT OPERATION Drilling TIME 23:56:02 YESTERDAY 6981 24 HOUR FOOTAGE 1293 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 6x14 2840' 5434' 43 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 274.8 @ 7523 1.2 @ 7250 115.4 90.45330 FT/HR SURFACE TORQUE 6906 @ 7515 3334 @ 7712 4910.6 5593.73291 AMPS WEIGHT ON BIT 19 @ 7137 1 @ 7418 9.2 10.76919 KLBS ROTARY RPM 114 @ 8245 58 @ 7137 84.2 90.64227 RPM PUMP PRESSURE 2089 @ 7666 1267 @ 7684 1822.1 1961.94275 PSI DRILLING MUD REPORT DEPTH 6775 (9/14/2014) MW 9.9 VIS 47 PV 12 YP 27 FL 4.5 Gels 10/15/18 CL- 10000 FC 1/0 SOL 10.7 SD 1.00 OIL 0/88.5 MBL 5.0 pH 9.6 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 62 @ 7887 0 @ 7423 15.9 TRIP GAS 20u CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 9802 @ 7850 70 @ 7423 2574.5 CONNECTION GAS HIGH 0u ETHANE (C-2) 24 @ 7699 0 @ 7423 4.9 AVG - PROPANE (C-3) 8 @ 8227 0 @ 8262 0.2 CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 35u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Siltstone 30% Tuffaceous sandstone 20% Tuffaceous Claystone 10% Coal PRESENT LITHOLOGY 40% Tuffaceous Siltstone 30% Tuffaceous sandstone 20% Tuffaceous Claystone 10% Coal DAILY ACTIVITY SUMMARY Continue drilling ahead to 7990'. Short trip out to 5867' then run back to bottom. Continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 16, 2014 DEPTH 9260 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 8274 24 HOUR FOOTAGE 986 CASING INFORMATION 10.75" @ 2838' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 8961 1.39 348.50 8960.57 9055 1.01 351.90 9054.55 9150 1.11 350.88 9149.53 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9.875" HCC PDC DP604 7037814 6x14 2840' 6420' 63:40 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 290.8 @ 8536 0.3 @ 9203 59.8 39.32337 FT/HR SURFACE TORQUE 6604 @ 8585 3831 @ 8344 4967.9 5146.08696 AMPS WEIGHT ON BIT 26 @ 8449 1 @ 8836 10.6 11.73462 KLBS ROTARY RPM 124 @ 8451 52 @ 8492 91.9 90.39615 RPM PUMP PRESSURE 3012 @ 9208 1918 @ 8293 2636.5 2952.98008 PSI DRILLING MUD REPORT DEPTH 9280 MW 10.8 VIS 53 PV 18 YP 41 FL 8.0 Gels 15/17/18 CL- 9100 FC 1/2 SOL 14.2 SD 1.0 OIL 0/85.0 MBL 7.5 pH 8.0 Ca+ 760 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 135 @ 8951 0 @ 8641 17.3 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 21081 @ 8951 7 @ 8641 2754.8 CONNECTION GAS HIGH 0u ETHANE (C-2) 35 @ 8951 0 @ 8641 6.8 AVG - PROPANE (C-3) 8 @ 8951 0 @ 9140 0.5 CURRENT - BUTANE (C-4) 9 @ 9006 0 @ 9140 0.3 CURRENT BACKGROUND/AVG 15u PENTANE (C-5) 7 @ 9006 0 @ 9140 0.2 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40%Tuffaceous Claystone 30% Tuffaceous Siltstone 20% Tuffaceous Sandstone 10% Coal PRESENT LITHOLOGY 40%Tuffaceous Claystone 30% Tuffaceous Siltstone 20% Coal 10% Tuffaceous Sandstone DAILY ACTIVITY SUMMARY Continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 17, 2014 DEPTH 10052 PRESENT OPERATION Drilling TIME 19:21:53 YESTERDAY 9260 24 HOUR FOOTAGE 792 CASING INFORMATION 10.75" @ 2838' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9714 2.02 339.56 9713.33 9809 1.79 343.71 9808.28 9904 2.25 354.12 9903.22 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 9.875" HCC PDC DP604 7037814 6x14 2840' 10052' 7212' 78:40 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 176.6 @ 9869 0.9 @ 9292 62.8 0 FT/HR SURFACE TORQUE 7312 @ 9871 4180 @ 9292 5728.6 4878.32861 AMPS WEIGHT ON BIT 31 @ 9959 1 @ 9519 12.5 27.00558 KLBS ROTARY RPM 153 @ 9985 72 @ 9304 119.3 93.11328 RPM PUMP PRESSURE 3136 @ 9606 2357 @ 9959 2995.8 2976.92749 PSI DRILLING MUD REPORT DEPTH 9280 (9/16/2014) MW 10.8 VIS 53 PV 18 YP 41 FL 8.0 Gels 15/17/18 CL- 9100 FC 1/2 SOL 14.2 SD 1.00 OIL 0/85.0 MBL 7.5 pH 8.0 Ca+ 760 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 67 @ 9971 1 @ 9325 16.2 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 31962 @ 9971 258 @ 9320 3068.4 CONNECTION GAS HIGH 0u ETHANE (C-2) 76 @ 9971 0 @ 9366 7.8 AVG - PROPANE (C-3) 10 @ 9880 0 @ 9748 0.5 CURRENT - BUTANE (C-4) 4 @ 9499 0 @ 9368 0.2 CURRENT BACKGROUND/AVG 7u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Claystone 30% Tuffaceous siltstone 20% sand 10% coal PRESENT LITHOLOGY 60% Tuffaceous Claystone 20% Tuffaceous siltstone 10% sand 10% coal DAILY ACTIVITY SUMMARY Continue drilling ahead to to 10052'. Descision was made to POOH and inspect bit due to low ROP. Circulate bottoms up and begin back reaming out of the hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 17, 2014 DEPTH 10052 PRESENT OPERATION Testing BOP's TIME 19:21:53 YESTERDAY 10052 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 6x14 2840' 10052' 7212' 78:40 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9893 MW 11.4 VIS 66 PV 20 YP 44 FL 8.0 Gels 14/24/29 CL- 10000 FC 1/2 SOL 16.2 SD 1.0 OIL 0/83.0 MBL 7.5 pH 8.8 Ca+ 600 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) @ @ CONNECTION GAS HIGH - ETHANE (C-2) @ @ AVG - PROPANE (C-3) @ @ CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled DAILY ACTIVITY SUMMARY Continue back reaming out of hole until the shoe. POOH and L/D BHA. R/U testing equipment and begin testing BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 18, 2014 DEPTH 10052 PRESENT OPERATION Testing BOP's TIME 23:59:59 YESTERDAY 10052 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC PDC DP604 7037814 6x14 2840' 10052' 10052' 78:40 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 9893 MW 11.4 VIS 66 PV 20 YP 44 FL 8.0 Gels 14/24/29 CL- 10000 FC 1/2 SOL 16.2 SD 1.0 OIL 0/83.0 MBL 7.5 pH 8.8 Ca+ 600 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) @ @ CONNECTION GAS HIGH - ETHANE (C-2) @ @ AVG - PROPANE (C-3) @ @ CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled DAILY ACTIVITY SUMMARY Continue back reaming out of hole until the shoe. POOH and L/D BHA. R/U testing equipment and begin testing BOP's. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 19, 2014 DEPTH 10052 PRESENT OPERATION Reaming to bottom TIME 23:59 YESTERDAY 10052 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC MX-1 Tri-cone 5238160 3x16 10052' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 10052 (9/18/2014) MW 11.3 VIS 59 PV 20 YP 42 FL 8.5 Gels 13/24/27 CL- 10000 FC 1/2 SOL 15.7 SD 1.0 OIL 0/83.5 MBL 7.5 pH 9.0 Ca+ 500 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0u 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 0u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY No new footage drilled DAILY ACTIVITY SUMMARY Finish testing BOP's and R/D testing equipment. P/U BHA and TIH. Circulate bottoms up at the shoe then begin reaming to bottom. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 20, 2014 DEPTH 10107 PRESENT OPERATION Servicing top drive TIME 23:59 YESTERDAY 10052 24 HOUR FOOTAGE 55 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC MX-1 Tri-cone 5238160 3x16 10052' 55 5:09 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1168.9 @ 10066 2.6 @ 10104 45.0 4.55009 FT/HR SURFACE TORQUE 6548 @ 10066 4267 @ 10054 4856.5 4842.68262 AMPS WEIGHT ON BIT 28 @ 10066 7 @ 10086 18.1 22.72850 KLBS ROTARY RPM 128 @ 10089 36 @ 10066 117.5 123.34630 RPM PUMP PRESSURE 3060 @ 10102 89 @ 10065 2786.9 3058.92310 PSI DRILLING MUD REPORT DEPTH 10052 (9/19/2014) MW 11.4 VIS 70 PV 20 YP 47 FL 6.6 Gels 16/27/33 CL- 10000 FC 1/2 SOL 16.2 SD 1.00 OIL 0/83 MBL 7.5 pH 9.4 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 140 @ 10094 2 @ 10058 30.5 TRIP GAS 135u CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 27363 @ 10094 414 @ 10058 5617.9 CONNECTION GAS HIGH - ETHANE (C-2) 55 @ 10094 1 @ 10058 11.9 AVG - PROPANE (C-3) 11 @ 10094 0 @ 10058 2.5 CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 18 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous siltstone 30% Tuffaceous Sandstone 30% Tuffaceous claystone PRESENT LITHOLOGY 40% Tuffaceous siltstone 30% Tuffaceous Sandstone 30% Tuffaceous claystone DAILY ACTIVITY SUMMARY Continue washing and reaming to bottom. Tag bottom and begin drilling ahead. Drill ahead to 10107' and rack back a stand and service top drive. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 21, 2014 DEPTH 10148 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 10107 24 HOUR FOOTAGE 41 CASING INFORMATION 10.75" @ 2838' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9998.00 2.64 356.58 9997.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 9.875" HCC MX-1 Tri-cone 5238160 3x16 10052' 96' 8:50 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 48.8 @ 10144 2.1 @ 10133 5.7 5.31035 FT/HR SURFACE TORQUE 5881 @ 10139 4065 @ 10144 2706.4 5406.38477 AMPS WEIGHT ON BIT 27 @ 10144 12 @ 10116 10.5 15.61159 KLBS ROTARY RPM 131 @ 10116 116 @ 10148 69.5 116.10061 RPM PUMP PRESSURE 3058 @ 10107 1977 @ 10148 1344.9 1977.26904 PSI DRILLING MUD REPORT DEPTH 10107' (9/20/2014) MW 11.2 VIS 70 PV 23 YP 37 FL 7.0 Gels 15/24/28 CL- 10500 FC 1/2 SOL 14.2 SD 1.00 OIL 0/85.0 MBL 10.0 pH 8.1 Ca+ 380 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 51 @ 10116 2 @ 10134 11.0 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 12157 @ 10132 565 @ 10134 2374.9 CONNECTION GAS HIGH - ETHANE (C-2) 24 @ 10132 1 @ 10134 5.2 AVG - PROPANE (C-3) 9 @ 10132 0 @ 10134 2.1 CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 9u PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% Tuffaceous Sandstone 20% Tuffaceous siltstone 20% Coal PRESENT LITHOLOGY 60% Tuffaceous Sandstone 20% Tuffaceous siltstone 20% Coal DAILY ACTIVITY SUMMARY Finished repairing top drive. Slip and cut drill line. Continue drilling ahead. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 22, 2014 DEPTH 10203 PRESENT OPERATION POOH TIME 23:59 YESTERDAY 10148 24 HOUR FOOTAGE 55 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC MX-1 Tri-cone 5238160 3x16 10052' 10203' 151' 15:34 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 22.2 @ 10163 0.7 @ 10203 7.3 0.73592 FT/HR SURFACE TORQUE 5441 @ 10165 3938 @ 10203 4576.0 3938.27246 AMPS WEIGHT ON BIT 23 @ 10164 14 @ 10177 20.2 19.06151 KLBS ROTARY RPM 130 @ 10176 115 @ 10165 123.8 125.18725 RPM PUMP PRESSURE 2880 @ 10201 1977 @ 10148 2678.3 2841.28955 PSI DRILLING MUD REPORT DEPTH 10153 (9/21/2014) MW 11.4 VIS 49 PV 17 YP 32 FL 6.2 Gels 9/16/22 CL- 11500 FC 1/2 SOL 14.1 SD 0.50 OIL 0/85.0 MBL 7.5 pH 8.8 Ca+ 560 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 66 @ 10162 6 @ 10158 17.7 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 13886 @ 10162 1434 @ 10158 3638.1 CONNECTION GAS HIGH - ETHANE (C-2) 28 @ 10162 2 @ 10191. 6.2 AVG - PROPANE (C-3) 12 @ 10162 0 @ 10185 1.9 CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 60% Tuffaceous siltstone 20% Tuffaceous sandstone 10% coal 10% Tuffaceous claystone PRESENT LITHOLOGY 60% Tuffaceous siltstone 20% Tuffaceous sandstone 10% coal 10% Tuffaceous claystone DAILY ACTIVITY SUMMARY Continue drilling ahead to 10203. Descision was made to POOH and change bit. CBU and begin pumping out of the hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 23, 2014 DEPTH 10434 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 10203 24 HOUR FOOTAGE 231 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC DP604 PDC 6x14 10203' 231' 4:41 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 172.3 @ 10220 0.7 @ 10203 70.2 130.33771 FT/HR SURFACE TORQUE 7535 @ 10228 3938 @ 10203 5557.6 5185.04883 AMPS WEIGHT ON BIT 19 @ 10203 5 @ 10204 10.6 13.00354 KLBS ROTARY RPM 125 @ 10203 79 @ 10205 104.5 99.92580 RPM PUMP PRESSURE 2841 @ 10203 2566 @ 10335 2681.4 2663.88770 PSI DRILLING MUD REPORT DEPTH 10203 (9/22/2014) MW 11.9 VIS 54 PV 20 YP 22 FL 2.0 Gels 4/10/14 CL- 12000 FC 1/2 SOL 16.1 SD 0.50 OIL 0/83.0 MBL 7.5 pH 9.3 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 75 @ 10331 2 @ 10280 20.6 TRIP GAS 37u CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 21944 @ 10331 904 @ 10280 5980.0 CONNECTION GAS HIGH - ETHANE (C-2) 59 @ 10414 1 @ 10280 14.7 AVG - PROPANE (C-3) 20 @ 10414 0 @ 10280 4.4 CURRENT - BUTANE (C-4) 61 @ 10414 0 @ 10242 6.4 CURRENT BACKGROUND/AVG 14u PENTANE (C-5) @ 0 @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% Tuffaceous Sandstone 30% Tuffaceous siltstone 10% Tuffaceous claystone 10% Coal PRESENT LITHOLOGY 40% Tuffaceous siltstone 30% Coal 20% Tuffaceous claystone 10% Tuffaceous sandstone DAILY ACTIVITY SUMMARY Finish POOH and L/D BHA. P/U new BHA and RIH. Wash down from 8570' to bottom. Drilling ahead at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4020.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 24, 2014 DEPTH 11263 PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 10434 24 HOUR FOOTAGE 829 CASING INFORMATION 10.75" @ 2838' 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 9.875" HCC DP604 PDC 6x14 10203 1060' 24:42 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.8 @ 10930 0.6 @ 10528 45.4 30.91606 FT/HR SURFACE TORQUE 7216 @ 10977 4192 @ 10523 5537.2 5881.38672 AMPS WEIGHT ON BIT 20 @ 11182 4 @ 10745 9.2 11.24809 KLBS ROTARY RPM 159 @ 11084 95 @ 10445 135.5 143.45898 RPM PUMP PRESSURE 2802 @ 10987 1243 @ 10958 2659.4 2677.48975 PSI DRILLING MUD REPORT DEPTH 10490 (9/23/2014) MW 11.9 VIS 50 PV 19 YP 22 FL 3.2 Gels 5/12/17 CL- 11000 FC 1/2 SOL 16.1 SD 1.00 OIL 0/83.0 MBL 10.0 pH 8.8 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 109 @ 10758 3 @ 10527 20.8 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 30646 @ 10923 922 @ 10527 6075.9 CONNECTION GAS HIGH 0u ETHANE (C-2) 93 @ 11248 4 @ 10861 18.9 AVG - PROPANE (C-3) 37 @ 11247 0 @ 10533 3.8 CURRENT - BUTANE (C-4) 19 @ 10434 0 @ 11157 0.9 CURRENT BACKGROUND/AVG 11u PENTANE (C-5) 9 @ 11071 0 @ 11157 0.5 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 40% Tuffaceous Claystone 40% Tuffaceous siltstone 10% coal 10%Tuffaceous sandstone PRESENT LITHOLOGY 50% Tuffaceous Claystone 30% Tuffaceous siltstone 20% Coal DAILY ACTIVITY SUMMARY Continue drilling ahead CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 25, 2014 DEPTH 11827 PRESENT OPERATION POOH TIME 23:59 YESTERDAY 11263 24 HOUR FOOTAGE 564 CASING INFORMATION 10.75" @ 2838 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 9.875" HCC DP604 PDC 6x14 10203 11827 1625' 38:18 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 153.0 @ 11572 0.4 @ 11662 45.3 33.99934 FT/HR SURFACE TORQUE 6948 @ 11749 4537 @ 11449 5790.0 5848.22754 AMPS WEIGHT ON BIT 16 @ 11559 3 @ 11779 10.2 8.51347 KLBS ROTARY RPM 159 @ 11783 19 @ 11728 147.8 155.43011 RPM PUMP PRESSURE 3116 @ 11755 2624 @ 11308 2803.3 2973.28735 PSI DRILLING MUD REPORT DEPTH 11290 (9/24/2014) MW 11.9 VIS 49 PV 20 YP 19 FL 3.2 Gels 5/11/15 CL- 12000 FC 1/2 SOL 17.1 SD 1.00 OIL 0/82.0 MBL 7.5 pH 9.0 Ca+ 320 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 96 @ 11495 3 @ 11709 14.2 TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) 163231 @ 11494 1144 @ 11659 6268.5 CONNECTION GAS HIGH 0u ETHANE (C-2) 404 @ 11494 3 @ 11374 21.4 AVG - PROPANE (C-3) 84 @ 11494 0 @ 11738 3.7 CURRENT - BUTANE (C-4) 19 @ 11494 0 @ 11531 0.6 CURRENT BACKGROUND/AVG - PENTANE (C-5) 9 @ 11582 0 @ 11531 0.2 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 50% Tuffaceous claystone 30% Tuffaceous siltstone 20% coal PRESENT LITHOLOGY 50% Tuffaceous claystone 30% Tuffaceous siltstone 20% coal DAILY ACTIVITY SUMMARY Drilled down to 11827' and called TD. Circulate hole clean and begin back reaming out of hole. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski Furie Operating Alaska, LLC Kitchen Lights Unit DAILY WELLSITE REPORT KLU #5 REPORT FOR Frank Johnson / Dale Munger DATE Sep 26, 2014 DEPTH 11827 PRESENT OPERATION L/D Drill Pipe TIME 16:43:45 YESTERDAY 11827 24 HOUR FOOTAGE 0 CASING INFORMATION 10.75" @ 2838' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 11.9 VIS 55 PV 22 YP 19 FL 3.0 Gels 7/15/18 CL- 11000 FC 1/2 SOL 18.2 SD 0.50 OIL 0.0/81.0 MBL 7.5 pH 9.2 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS - CUTTING GAS @ @ WIPER GAS - CHROMATOGRAPHY (ppm) SURVEY - METHANE (C-1) @ @ CONNECTION GAS HIGH - ETHANE (C-2) @ @ AVG - PROPANE (C-3) @ @ CURRENT - BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG - PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY no new footage drilled DAILY ACTIVITY SUMMARY Finish POOH and L/D BHA. L/D Drill pipe at report time. CANRIG PERSONNEL ON BOARD 4 DAILY COST $4050.00 REPORT BY Dubowski
