Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
208-052
David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4424 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KBU 11-08Y 50133205520000 205091 1/28/2021 SET PLUG Yellowjacket KBU 23-7 50133205320000 203217 12/20/2020 JET CUT Yellowjacket KBU 23-7 50133205320000 203217 1/4/2021 PERF GAMMA RAY Yellowjacket KBU 41-6 50133205550000 205141 2/8/2021 SET PLUG Yellowjacket KBU 43-07Y 50133206250000 214019 1/22/2021 PERF GAMMA RAY Yellowjacket KBU 44-06 50133204980000 200179 2/22/2021 SET PLUG - JET CUT Yellowjacket KBU 42-07RD 50133204880100 208052 5/31/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/2/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/7/2020 PERF GAMMA RAY/GPT Yellowjacket KDU 09 50133205780000 208106 11/25/2020 JET CUT Yellowjacket KDU 09 50133205780000 208106 5/17/2021 PERF / GPT Yellowjacket KTU 13-05 50133203700000 184108 1/12/2021 SET PLUG Yellowjacket KTU 24-06H 50133204900000 199073 6/19/2020 PERF Yellowjacket KTU 24-06H 50133204900000 199073 6/20/2020 GPT Yellowjacket KU 44-08 50133206940000 220068 1/15/2021 SET PLUG Yellowjacket KU 44-08 50133206940000 220068 2/4/2021 PERF GAMMA RAY/GPT Yellowjacket KU 44-08 50133206940000 220068 4/6/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. 06/28/2021 Received By: 37' (6HW By Abby Bell at 12:23 pm, Jun 28, 2021 David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4424 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KBU 11-08Y 50133205520000 205091 1/28/2021 SET PLUG Yellowjacket KBU 23-7 50133205320000 203217 12/20/2020 JET CUT Yellowjacket KBU 23-7 50133205320000 203217 1/4/2021 PERF GAMMA RAY Yellowjacket KBU 41-6 50133205550000 205141 2/8/2021 SET PLUG Yellowjacket KBU 43-07Y 50133206250000 214019 1/22/2021 PERF GAMMA RAY Yellowjacket KBU 44-06 50133204980000 200179 2/22/2021 SET PLUG - JET CUT Yellowjacket KBU 42-07RD 50133204880100 208052 5/31/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/2/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/7/2020 PERF GAMMA RAY/GPT Yellowjacket KDU 09 50133205780000 208106 11/25/2020 JET CUT Yellowjacket KDU 09 50133205780000 208106 5/17/2021 PERF / GPT Yellowjacket KTU 13-05 50133203700000 184108 1/12/2021 SET PLUG Yellowjacket KTU 24-06H 50133204900000 199073 6/19/2020 PERF Yellowjacket KTU 24-06H 50133204900000 199073 6/20/2020 GPT Yellowjacket KU 44-08 50133206940000 220068 1/15/2021 SET PLUG Yellowjacket KU 44-08 50133206940000 220068 2/4/2021 PERF GAMMA RAY/GPT Yellowjacket KU 44-08 50133206940000 220068 4/6/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. 06/28/2021 Received By: 37' (6HW By Abby Bell at 12:23 pm, Jun 28, 2021 David Douglas Hilcorp Alaska, LLC Sr. Geotechnician 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 777-8337 E-mail: david.douglas@hilcorp.com Please acknowledge receipt and return one copy of this transmittal or FAX to 907 564-4424 Received By: Date: Hilcorp North Slope, LLC Date: 06/22/2021 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL FTP Folder Contents: Log Print Files and LAS Data Files: Well API # PTD # Date Log Type Logging Company KBU 11-08Y 50133205520000 205091 1/28/2021 SET PLUG Yellowjacket KBU 23-7 50133205320000 203217 12/20/2020 JET CUT Yellowjacket KBU 23-7 50133205320000 203217 1/4/2021 PERF GAMMA RAY Yellowjacket KBU 41-6 50133205550000 205141 2/8/2021 SET PLUG Yellowjacket KBU 43-07Y 50133206250000 214019 1/22/2021 PERF GAMMA RAY Yellowjacket KBU 44-06 50133204980000 200179 2/22/2021 SET PLUG - JET CUT Yellowjacket KBU 42-07RD 50133204880100 208052 5/31/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/2/2020 PERF GAMMA RAY/GPT Yellowjacket KBU 42-07RD 50133204880100 208052 6/7/2020 PERF GAMMA RAY/GPT Yellowjacket KDU 09 50133205780000 208106 11/25/2020 JET CUT Yellowjacket KDU 09 50133205780000 208106 5/17/2021 PERF / GPT Yellowjacket KTU 13-05 50133203700000 184108 1/12/2021 SET PLUG Yellowjacket KTU 24-06H 50133204900000 199073 6/19/2020 PERF Yellowjacket KTU 24-06H 50133204900000 199073 6/20/2020 GPT Yellowjacket KU 44-08 50133206940000 220068 1/15/2021 SET PLUG Yellowjacket KU 44-08 50133206940000 220068 2/4/2021 PERF GAMMA RAY/GPT Yellowjacket KU 44-08 50133206940000 220068 4/6/2021 PERF GAMMA RAY / GPT Yellowjacket Please include current contact information if different from above. 06/28/2021 Received By: 37' (6HW By Abby Bell at 12:23 pm, Jun 28, 2021 1. Operations Abandon Plug Perforations Fracture Stimulate Pull Tubing Operations shutdown Performed: Suspend Perforate Other Stimulate Alter Casing Change Approved Program Plug for Redrill Perforate New Pool Repair Well Re-enter Susp Well Other: N2 Development Exploratory Stratigraphic Service 6. API Number: 7. Property Designation (Lease Number):8. Well Name and Number: 9. Logs (List logs and submit electronic data per 20AAC25.071):10. Field/Pool(s): 11. Present Well Condition Summary:3,870; 3,970 4,010'; 4,015' Total Depth measured 7,926 feet 5,200'; 5,700' feet true vertical 7,588 feet N/A feet Effective Depth measured 3,870 feet N/A feet true vertical 3,669 feet N/A feet Perforation depth Measured depth See Attached Schematic True Vertical depth See Attached Schematic Tubing (size, grade, measured and true vertical depth)N/A N/A MD TVD Packers and SSSV (type, measured and true vertical depth)N/A N/A N/A N/A 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure:N/A 13. Prior to well operation: Subsequent to operation: 15. Well Class after work: Daily Report of Well Operations Exploratory Development Service Stratigraphic Copies of Logs and Surveys Run 16. Well Status after work: Oil Gas WDSPL Electronic Fracture Stimulation Data GSTOR GINJ SUSP SPLUG Sundry Number or N/A if C.O. Exempt: Taylor Wellman 777-8449 Contact Name:Ted Kramer Authorized Title:Operations Manager Contact Email: Contact Phone:777-8420 tkramer@hilcorp.com Senior Engineer:Senior Res. Engineer: Representative Daily Average Production or Injection Data 7,901' Authorized Signature with date: Authorized Name: 3,060psi 10,160psi 117' 1,732' 7,563' 5,020psi 3,450psi1,093' Collapse 1,500psi 1,950psi 2,260psi 4,094' 1,099' 651' 3,090psi Burst 10,540psi Casing Structural 20" 13-3/8" 13-3/8" Length 117'Conductor Surface Surface Production Intermediate 0 3,873'5,750psi 10 Casing Pressure Liner 1,435 0 Oil-Bbl Hilcorp Alaska, LLC 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 320-204 254 Size 14. Attachments (required per 20 AAC 25.070, 25.071, & 25.283) 0 Gas-Mcf Junk STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS 208-052 50-133-20488-01-00 4. Well Class Before Work:5. Permit to Drill Number: 3. Address: 2. Operator Name: 3800 Kenai Beluga Unit 42-7RD N/A ADL028142 1,750' Plugs measured 3800 Centerpoint Dr Suite 1400 Anchorage, AK 99503 Kenai Field / Sterling Gas PoolN/A measured TVD Tubing Pressure 4,094' measured true vertical Packer 3-1/2"7,901' 9-5/8" WINJ WAG 0 Water-Bbl MD 117' 1,099' 0 t Fra O 6. A G L PG , R Form 10-404 Revised 3/2020 Submit Within 30 days of Operations By Jody Colombie at 2:10 pm, Jun 26, 2020 Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.06.26 10:01:54 -08'00' Taylor Wellman 1,435 DSR-6/26/2020 Sterling 3 Gas Pool RBDMS HEW 6/29/2020 gls 9/2/20 SFD 7/2/2020 SFD 7/2/2020 Rig Start Date End Date 5/31/20 6/7/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KBU 42-07RD 50-133-20488-00 208-052 PTW, JSA and SIMOPS with YellowJacket and SLB N2. Spot and rig up hardlines and lubricator. PT to 250 psi high and 3,500 psi low. RIH w/GPT and tie into GPT log from the other day. Found fluid at 3,826'. Ran correlation log and send to town. Said we were 2' deep. shifted log up 2'. Started pushing fluid away with SLB N2. Got fluid pushed away with pressure at 1,990 psi. POOH. RIH w/ 2.75" CIBP w/GPT and tie into GPT log. Run a correlation log and send to town. Get ok to set plug at 3,870'. Spotted and fired plug with 1,990 psi on. In about 3 min we lost 50 to 60 lbs on wt indicator also showed on log. Waited 5 min more and was going to pull up 30' and back down to tag plug. Tools hung up with bottom at 3,850 and top at 3,831'. Called town and discussed. Pulled line wt in 100 lb increments from 1,900 lbs to 3,400 lbs and pulled out of ropesocket. Bled well to zero psi while coming out of hole. Slickline was on another well so they rig down and came over to fish tools. MOB FROM 31-7X PTW, JSA, SIMOPS with Yellowjacket, SLB N2 and Pollard SL. RIG UP W/L - PT W/ SCHLUMBERGER NITROGEN 2,000 PSI. RIH W/ 2.5" GS W/ BAIT SUB W/ OVERSHOT TO 3,825'KB WT LATCH ELINE FISH - POOH SLOWLY - TOOLS GRABBING COLLARS OOH W/ TOOLS - BREAK DOWN ELINE TOOLSTRING - RIG DOWN SLICKLINE, OB TO 31-7X. Rig Yellowjacket back up. PT to 250 psi low and 3,500 psi high. RIH w/GPT tool and sat down at 100'. Pick up and went back down no problem. Tie into Plug log and tag plug at 3,870' where it was suspose to be. Dont know what had us at 3,850' - 3,831'. POOH. There was no fluid in well. RIH w 2- 3/8"x5' Razor HC, 5 spf, 60 degree phase and tie into Plug log. Tag plug at 3870'. Run correlation log and send to town. Told to add 1.5' to correlation log. Pressured tubing up to 1247.4, spotted gun from 3,851' to 3856' and fired gun. After 5 min - 1,220.6 psi, 10 min - 1,142.2 psi and 15 min - 1045 psi. POOH. All shots fired and gun was dry. Rig down lubricator and turn well over to field. 05/31/2020 - Sunday Sign in. Mobe to location. PTW and JSA for Yellowjacket. Spot and rig up equipment. Rig up lubricator. SLB N2 crew and truck arrive at 0800 hrs. Had PTW, JSA, and SIMOPS. Spotted and rigged up hard lines. Started to PT lines and valve quick working. Trouble shot and fixed the valve. PT hard lines and lubricator to 250 psi low and 3,500 psi high. RIH w/GPT tool and 2.75" CIBP and found fluid level 3,120' and tagged at 3,896'. SLB started pumping fluid away and when pressure got to 2,200 psi it broke over and settled back down to 1,600 psi and pushed the fluid away. Pressure started gaining so I had them keep a steady 1,600 psi while I sent the plug correlation log in. Sent log to town and town said we were on depth to set it at 3,890'. Set plug with 1,600 psi on tubing. Pick up 30' and go back down and tag plug. POOH and setting tool looked good. RIH w/GPT, 2-3/8" x 10' Razor HC, 5 spf, 60deg phase perf gun and tied into a log sent from town. Bled well down to 1,227 psi while running correlation log. Send log to town and got the ok to perf. Spotted and fired gun from 3,874' to 3,884' with 1,227 psi on tubing. After 5 min - 1,229 psi, 10 min - 1,223.4 psi. and 15 min - 1,218.1 psi. All shots fired gun was dry. Rig down lubricator and equipment and turn well over to field. 06/02/2020 - Tuesday w/GPT tool and 2.75" CIBP and found fluid level 3,120' and tagged at 3,896' spotted gun from 3,851' to 3856' and f FISH depth to set it at 3,890' Get ok to set plug at 3,870' fired gun from 3,874' to 3,884' with 1,227 psi on tubing. Rig Start Date End Date 5/31/20 6/7/20 Daily Operations: Hilcorp Alaska, LLC Well Operations Summary API Number Well Permit NumberWell Name KBU 42-07RD 50-133-20488-00 208-052 06/07/2020 - Sunday Sign in. Mobe to location. PTW, JSA and Simops with Yellowjacket and SLB N2. Spot equipment and rig up lubricator. PT hard lines and lubricator to 250 psi low and 4,000 psi high. 350 psi. RIH w/GPT tool, tie into plug log and tag plug at 3,870'. Found no fluid in well. Ran a strip log and send to town. POOH. Pressure up tubing to 1,275 psi. RIH w/ 2-3/8" x 19' Razor HC, 5 spf, 60 deg phase and tie into Plug log. Run correlation log and send to town. Pressure back up to 1,250 psi with N2. Get ok to perf from 3,805' to 3,824' with 1,218 psi. Spot and fire gun. After 5 min - 924 psi, 10 min - 831 psi and 15 min - 703 psi. POOH. All shots fired and gun dry. RIH w/ 2-3/8" x 6' Razor HC, 5 spf, 60 deg phase and tie into Plug log. Run correlation log and send to town. Get ok to perf from 3,799' to 3,805' with 338 psi. Spot and fire gun. After 5 min - 338 psi, 10 min - 338 psi and 15 min - 337 psi psi. POOH. All shots fired and gun dry. Rig down lubricator and turn well over to field. o perf from 3,799' to 3,805' w _____________________________________________________________________________________ Updated by DMA 06-16-30 SCHEMATIC Kenai Gas Field Well: KBU 42-7RD Last Completed: 5/27/2008 PTD: 208-052 CASING DETAIL SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 13-3/8' Surface 68 K-55 BTC 12.415 Surf. 1,099' 68 L-80 BTC 12.415 1,099’ 1,750’ 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094’ 3-1/2" Production 9.3 L-80 Butt- Mod 2.992 Surf. 7,901' JEWELRY DETAIL No Depth Item 1 3,870’ CIBP 6/2/20 2 3,890’ CIBP 5/31/20 3 4,010’ CIBP capped w/ 10’ of cement 4 5,015’ CIBP capped w/ 10’ of cement 5 5,200’ CIBP capped w/ 10’ of cement 6 5,700’ CIBP PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Status A8 3,799’ 3,824’ 3,605’ 3,628’ 25 6/7/20 Open A9 3,851’ 3,856’ 3,652’ 3,657’ 5 6/2/20 Open A10 3,874’ 3,884’ 3,673’ 3,683’ 10 Isolated A10 3,898 3,918 3,695’ 3,713’ 20 Isolated A11 3,961 3,981 3,752’ 3,770’ 20 Isolated B1 4,027 4,047 3,812’ 3,830’ 20 Isolated UB-1 5,024 5,034 4,710’ 4,719’ 10 Isolated UB-1X 5,057 5,067 4,740’ 4,749’ 10 Isolated Upper Tyonek & Beluga 5,284’ 5,292’ 4,954’ 4,962’ 8 Isolated 5,306’ 5,313’ 4,975’ 4,982’ 7 Isolated 5,400 5,409’ 5,066’ 5,075’ 9 Isolated 5,409’ 5,423’ 5,075’ 5,089’ 14 Isolated 5,464’ 5,470’ 5,129’ 5,135’ 6 Isolated 5,562’ 5,571’ 5,226’ 5,235’ 9 Isolated 5,726’ 5,736’ 5,389' 5,399' 10 Isolated 5,773’ 5,783’ 5,436' 5,446' 10 Isolated 5,956’ 5,966’ 5,619' 5,629' 10 Isolated 6,023’ 6,033’ 5,686' 5,696' 10 Isolated 6,203’ 6,213’ 5,866' 5,876' 10 Isolated 6,402’ 6,412’ 6,065' 6,075' 10 Isolated 6,492’ 6,502’ 6,155' 6,165' 10 Isolated 6,591’ 6,601’ 6,253' 6,263' 10 Isolated 6,842’ 6,852’ 6,504' 6,514' 10 Isolated 7,040’ 7,050’ 6,702' 6,712' 10 Isolated 7,093’ 7,103’ 6,755' 6,765' 10 Isolated 7,247’ 7,257’ 6,909' 6,919' 10 Isolated 7,318’ 7,328’ 6,980' 6,990' 10 Isolated 7,404’ 7,414’ 7,066' 7,076' 10 Isolated 7,480’ 7,490’ 7,142' 7,152' 10 Isolated 7,552’ 7,562’ 7,214' 7,224' 10 Isolated 7,593' 7,603’ 7,255' 7,265' 10 Isolated OPEN HOLE / CEMENT DETAIL 13-3/8" 17-1/2" hole, Cmt w/734 sks of class G BTC @ 1,750' MD 9-5/8" 12-1/4" hole, Cmt w/ 654 sks of class G BTC @ 5,582 3-1/2” 8-1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 ppg lead & 689 sks (142 bbls) 15.8 ppg tail (class G cmt). 8rd with 6.25" OD control line protectors to 7901' RKB. Estimated TOC @ 1,926’, 2,106’ above window opening. ESCAPE SYSTEM DETAILS * 17 Escape modules placed * Green control line fired module 1 thru 5 * Yellow control line fired modules 6 thru 11 * Red control line fired modules 12 thru 17 * Ceramic flapper valves below each module as follows: *16 Disappearing flappers * Standard flapper at Module-1 FLAPPERS MD (RKB) Module 17 - N/A Module 16 - 5,793' Module 15 - N/A Module 14 - 6,043’ Module 13 - 6,223’ Module 12 - 6,422’ Module 11 - 6,512' Module 10 - 6,611' Module 9 - 6,862' Module 8 - N/A Module 7 - 7,713' Module 6 - 7,267' Module 5 - 7,338' Module 4 - 7,424' Module 3 7,500' Module 2 - 7,572' Module 1 - NA CIBP CIBP A8 3,799’3,824’3,605’3,628’25 6/7/20 Open A9 3,851’3,856’3,652’3,657’5 6/2/20 Open CIBP CIBP CIBP 1.Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: N2 2.Operator Name:4.Current Well Class:5.Permit to Drill Number: Exploratory Development 3.Address:Stratigraphic Service 6.API Number: 7.If perforating:8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9.Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): 7,926'N/A Casing Collapse Structural Conductor 1,500 psi Surface 1,950 psi Intermediate 2,260 psi Production 3,090 psi Liner 10,540 psi Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13.W ell Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15.Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Taylor Wellman 777-8449 Contact Name: Christina Twogood Operations Manager Contact Email: Contact Phone: 777-8443 Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng ctwogood@hilcorp.com 7,588'7,833'7,495'~ 1,215 psi 5,700' N/A; N/A N/A; N/A Perforation Depth TVD (ft): Tubing Size: COMMISSION USE ONLY Authorized Name: 10,160 psi Tubing Grade:Tubing MD (ft): See Attached Schematic STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ADL 028142 208-052 50-133-20488-01-00 Kenai Beluga Unit (KBU) 42-7RD Kenai Gas Field Sterling Gas Pool 3 Length Size CO 510A Hilcorp Alaska, LLC 3800 Centerpoint Dr, Suite 1400 Anchorage Alaska 99503 PRESENT WELL CONDITION SUMMARY N/A TVD Burst N/A 5,750 psi MD 5,020 psi 3,060 psi 3,450 psi 117' 1,093' 1,732' 117' 1,099' 3,873'9-5/8" 20" 13-3/8" 117' 13-3/8"651' 1,099' 4,094' Perforation Depth MD (ft): 1,750' See Attached Schematic 4,094' 3-1/2' Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: May 29th, 2020 7,901'7,901' N/A 7,563' m n P 66 t 2 Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. Digitally signed by Taylor Wellman DN: cn=Taylor Wellman, ou=Users Date: 2020.05.15 17:35:52 -08'00' Taylor Wellman By Samantha Carlisle at 8:19 am, May 18, 2020 320-204 DSR-5/18/2020 Perforate Other: N22 10-404 GAS + MIT-IA to 1500 psi prior to perforating. (Sterling) Sterling Gas Pool 3 SFD 5/19/2020 SFD 5/19/20 gls 5/21/20JLC 5/22/2020 dts 5/22/2020 05/22/2020Daniel T. Seamount, Jr.Digitally signed by Daniel T. Seamount, Jr. Date: 2020.05.22 09:19:32 -08'00' RBDMS HEW 5/22/2020 Well Prognosis Well: KBU 42-07RD Date: 5/14/2020 Well Name: KBU 42-07RD API Number: 50-133-20488-01-00 Current Status: Shut In Gas Producer Leg: N/A Estimated Start Date: May 28th, 2020 Rig: E-Line Reg. Approval Req’d? Yes Date Reg. Approval Rec’vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-052 First Call Engineer: Christina Twogood (907) 777-8443 (907) 378-7323 (C) Second Call Engineer: Ted Kramer (907) 777-8420 (985) 867-0665 (C) AFE Number: Current Max BHP: ~ 456 psi @ 4,507’ TVD (Based on 4/30/2016 SIBHP survey) Max. Expected BHP: ~ 1,575 psi @ 3,605’ TVD (Based on normal pressure gradient) Max. Potential Surface Pressure: ~ 1,215 psi (Based on expected BHP and gas gradient to surface (0.10psi/ft)) Brief Well Summary KBU 42-07RD is an Excape completion drilled in 4/2008. The slot was originally the KBU 42-07 which was re- drilled because the casing parted and the well sanded off. The KBU 42-07RD only produced briefly from 4/2008 to 11/2008 and failed mechanically due to well loading issues. In 2/2009 the well was kicked off again with CT but it died a few weeks later. HAK plugged back the well and completed in the Upper Beluga sands but was unsuccessful due to commingled water with gas sands. The purpose of this work/sundry is to set a plug above the open UB sands and add perforations in the Sterling Gas Pool 3. Notes Regarding Wellbore Condition x Well has been SI since February 2009 x Minimum ID is 2.992” x Last tag @ 3,935’ KB w/ 2.75” BB (hard fill) and found fluid level at 3,821’ KB x Estimated TOC is at 1,926’ MD Safety Concerns x Discuss nitrogen asphyxiation concerns and identify any areas where nitrogen could collect and people could enter. x Consider tank placement based on wind direction and current weather forecast (venting nitrogen during this job). x Ensure all crews are aware of stop job authority. E-Line Procedure 1. MIRU E-Line and pressure control equipment. PT lubricator to 250 psi Low / 2,500 psi High. No downhole commingling issue as CIBP will isolate the currently open Beluga perfs so only Sterling perfs will be open post workover. DSR-5/18/2020 The purpose of this work/sundry is to set a plug above the open UB sands and (CBL was run on 5/14/08 and indicated TOC was at 2806' md (1288 ft above window in 9 5/8" surface casing) gls ? NOTE: MIT-IA to 1500 psi /30 min before perforating well. gls Gas Pool 3. add perforations in the Sterling Well Prognosis Well: KBU 42-07RD Date: 5/14/2020 2. RIH with GPT tool and find fluid level. If fluid is over the depth of the new perfs, discuss using Nitrogen with the Operations Engineer. 3. If needed, RU Nitrogen Truck, pressure up on well and push water back into formation. Use GPT tool to confirm water level is below interval to perf. 4. RIH with 3-1/2” CIBP and set at 3,890’. 5. RU perf guns. 6. RIH and perforate the following intervals: a. Pressure up well to 1,200 psi before perforating. b. Proposed perfs also shown on the proposed schematic in red font. c. Final Perfs tie-in sheet will be provided in the field for exact perf intervals. d. Correlate using Open Hole Correlation Log provided by Geologist. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. e. Use Gamma/CCL to correlate. f. Install Crystal gauges (or verify PTs are open to SCADA) before perforating. Record tubing pressures before and after each perforating run. g. All perforations in table above are located in the Sterling Gas Pool 3 based on Conservation Order No. 510A. 7. POOH. 8. RD E-Line. 9. Turn well over to production. (Test SSV with-in 5 days of stable production on well – notify AOGCC 24hrs before testing) E-line Procedure (Contingency) 1. If any zone produces sand and/or water or needs isolated: 2. MIRU E-Line and pressure control equipment. PT lubricator to 250 psi Low / 2,500 psi High. 3. RIH and set 3-1/2” Casing Patch or set 3-1/2” CIBP above the zone and dump 35’ of cement on top of the plug. Attachments: 1. Current Well Schematic 2. Proposed Well Schematic 3. Standard Well Procedure – N2 Operations Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Sterling A8 ±3,799’ ±3,839’ ±3,605’ ±3,645’ ±40 Sterling A9 ±3,851’ ±3,856’ ±3,652’ ±3,657’ ±5 Sterling A10 ±3,874’ ±3,884’ ±3,673’ ±3,683’ ±10 Zone Sand Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT ±3,799’ ±3,839’ ±3,605’ ±3,645’ ±40 ±3,851’ ±3,856’ ±3,652’ ±3,657’ ±5 ±3,874’ ±3,884’ ±3,673’ ±3,683’ ±10 Perfs are above the surface casing shoe. All perforations in table above are located in the Sterling Gas Pool 3 based onp Conservation Order No. 510A. 7. A9 e Sterling Gas Pool 3 Sterling A8 Sterling A10 Sterling _____________________________________________________________________________________ Updated by DMA 06-02-16 SCHEMATIC _____ Kenai Gas Field Well: KBU 42-7RD Last Completed: 5/27/2008 PTD: 208-052 ____________ ________________________________________________________ CASING DETAIL SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 13-3/8' Surface 68 K-55 BTC 12.415 Surf. 1,099' 68 L-80 BTC 12.415 1,099’ 1,750’ 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094’ 3-1/2" Production 9.3 L-80 Butt- Mod 2.992 Surf. 7,901' JEWELRY DETAIL No Depth Item 1 4,010’ CIBP capped w/ 10’ of cement 2 5,015’ CIBP capped w/ 10’ of cement 3 5,200’ CIBP capped w/ 10’ of cement 4 5,700’ CIBP PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Status A10 3,898 3,918 3,695’ 3,713’ 20 Open A11 3,961 3,981 3,752’ 3,770’ 20 Open B1 4,027 4,047 3,812’ 3,830’ 20 Isolated UB-1 5,024 5,034 4,710’ 4,719’ 10 Isolated UB-1X 5,057 5,067 4,740’ 4,749’ 10 Isolated Upper Tyonek & Beluga 5,284’ 5,292’ 4,954’ 4,962’ 8 Isolated 5,306’ 5,313’ 4,975’ 4,982’ 7 Isolated 5,400 5,409’ 5,066’ 5,075’ 9 Isolated 5,409’ 5,423’ 5,075’ 5,089’ 14 Isolated 5,464’ 5,470’ 5,129’ 5,135’ 6 Isolated 5,562’ 5,571’ 5,226’ 5,235’ 9 Isolated 5,726’ 5,736’ 5,389' 5,399' 10 Isolated 5,773’ 5,783’ 5,436' 5,446' 10 Isolated 5,956’ 5,966’ 5,619' 5,629' 10 Isolated 6,023’ 6,033’ 5,686' 5,696' 10 Isolated 6,203’ 6,213’ 5,866' 5,876' 10 Isolated 6,402’ 6,412’ 6,065' 6,075' 10 Isolated 6,492’ 6,502’ 6,155' 6,165' 10 Isolated 6,591’ 6,601’ 6,253' 6,263' 10 Isolated 6,842’ 6,852’ 6,504' 6,514' 10 Isolated 7,040’ 7,050’ 6,702' 6,712' 10 Isolated 7,093’ 7,103’ 6,755' 6,765' 10 Isolated 7,247’ 7,257’ 6,909' 6,919' 10 Isolated 7,318’ 7,328’ 6,980' 6,990' 10 Isolated 7,404’ 7,414’ 7,066' 7,076' 10 Isolated 7,480’ 7,490’ 7,142' 7,152' 10 Isolated 7,552’ 7,562’ 7,214' 7,224' 10 Isolated 7,593' 7,603’ 7,255' 7,265' 10 Isolated OPEN HOLE / CEMENT DETAIL 13-3/8" 17-1/2" hole, Cmt w/734 sks of class G BTC @ 1,750' MD 9-5/8" 12-1/4" hole, Cmt w/ 654 sks of class G BTC @ 5,582 3-1/2” 8-1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 ppg lead & 689 sks (142 bbls) 15.8 ppg tail (class G cmt). 8rd with 6.25" OD control line protectors to 7901' RKB. Estimated TOC @ 1,926’, 2,106’ above window opening. ESCAPE SYSTEM DETAILS * 17 Excape modules placed * Green control line fired module 1 thru 5 * Yellow control line fired modules 6 thru 11 * Red control line fired modules 12 thru 17 * Ceramic flapper valves below each module as follows: *16 Disappearing flappers * Standard flapper at Module-1 FLAPPERS MD (RKB) Module 17 - N/A Module 16 - 5,793' Module 15 - N/A Module 14 - 6,043’ Module 13 - 6,223’ Module 12 - 6,422’ Module 11 - 6,512' Module 10 - 6,611' Module 9 - 6,862' Module 8 - N/A Module 7 - 7,713' Module 6 - 7,267' Module 5 - 7,338' Module 4 - 7,424' Module 3 7,500' Module 2 - 7,572' Module 1 - NA Cement job on 5/9/2008 indicated good cement placement. ( 0345 bbl/ft annulus vol) TOC at 2806' per CBL dated 5/14/08 Per well notes. (window in 9 5/8") * CBL run on 5/14/08 .. TOC at 2806 ft MD CURRENT B1 A10 Isolated Open A11 0 Open _____________________________________________________________________________________ Updated by CMT 5-15-2020 PROPOSED SCHEMATIC _____ Kenai Gas Field Well: KBU 42-7RD Last Completed: 5/27/2008 PTD: 208-052 ____________ ________________________________________________________ CASING DETAIL SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 13-3/8' Surface 68 K-55 BTC 12.415 Surf. 1,099' 68 L-80 BTC 12.415 1,099’ 1,750’ 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094’ 3-1/2" Production 9.3 L-80 Butt- Mod 2.992 Surf. 7,901' JEWELRY DETAIL No Depth Item 1 ±3,890’ CIBP 2 4,010’ CIBP capped w/ 10’ of cement 3 5,015’ CIBP capped w/ 10’ of cement 4 5,200’ CIBP capped w/ 10’ of cement 5 5,700’ CIBP PERFORATION DETAIL Sands Top (MD) Btm (MD) Top (TVD) Btm (TVD) FT Status A8 ±3,799’ ±3,839’ ±3,605’ ±3,645’ 40 Proposed A9 ±3,851’ ±3,856’ ±3,652’ ±3,657’ 5 Proposed A10 ±3,874’ ±3,884’ ±3,673’ ±3,683’ 10 Proposed A10 3,898 3,918 3,695’ 3,713’ 20 Open A11 3,961 3,981 3,752’ 3,770’ 20 Open B1 4,027 4,047 3,812’ 3,830’ 20 Isolated UB-1 5,024 5,034 4,710’ 4,719’ 10 Isolated UB-1X 5,057 5,067 4,740’ 4,749’ 10 Isolated Upper Tyonek & Beluga 5,284’ 5,292’ 4,954’ 4,962’ 8 Isolated 5,306’ 5,313’ 4,975’ 4,982’ 7 Isolated 5,400 5,409’ 5,066’ 5,075’ 9 Isolated 5,409’ 5,423’ 5,075’ 5,089’ 14 Isolated 5,464’ 5,470’ 5,129’ 5,135’ 6 Isolated 5,562’ 5,571’ 5,226’ 5,235’ 9 Isolated 5,726’ 5,736’ 5,389' 5,399' 10 Isolated 5,773’ 5,783’ 5,436' 5,446' 10 Isolated 5,956’ 5,966’ 5,619' 5,629' 10 Isolated 6,023’ 6,033’ 5,686' 5,696' 10 Isolated 6,203’ 6,213’ 5,866' 5,876' 10 Isolated 6,402’ 6,412’ 6,065' 6,075' 10 Isolated 6,492’ 6,502’ 6,155' 6,165' 10 Isolated 6,591’ 6,601’ 6,253' 6,263' 10 Isolated 6,842’ 6,852’ 6,504' 6,514' 10 Isolated 7,040’ 7,050’ 6,702' 6,712' 10 Isolated 7,093’ 7,103’ 6,755' 6,765' 10 Isolated 7,247’ 7,257’ 6,909' 6,919' 10 Isolated 7,318’ 7,328’ 6,980' 6,990' 10 Isolated 7,404’ 7,414’ 7,066' 7,076' 10 Isolated 7,480’ 7,490’ 7,142' 7,152' 10 Isolated 7,552’ 7,562’ 7,214' 7,224' 10 Isolated 7,593' 7,603’ 7,255' 7,265' 10 Isolated Updated by CMT 5-15-2020 OPEN HOLE / CEMENT DETAIL 13-3/8" 17-1/2" hole, Cmt w/734 sks of class G BTC @ 1,750' MD 9-5/8" 12-1/4" hole, Cmt w/ 654 sks of class G BTC @ 5,582 3-1/2” 8-1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 ppg lead & 689 sks (142 bbls) 15.8 ppg tail (class G cmt). 8rd with 6.25" OD control line protectors to 7901' RKB. Estimated TOC @ 1,926’, 2,106’ above window opening. ESCAPE SYSTEM DETAILS * 17 Excape modules placed * Green control line fired module 1 thru 5 * Yellow control line fired modules 6 thru 11 * Red control line fired modules 12 thru 17 * Ceramic flapper valves below each module as follows: *16 Disappearing flappers * Standard flapper at Module-1 FLAPPERS MD (RKB) Module 17 - N/A Module 16 - 5,793' Module 15 - N/A Module 14 - 6,043’ Module 13 - 6,223’ Module 12 - 6,422’ Module 11 - 6,512' Module 10 - 6,611' Module 9 - 6,862' Module 8 - N/A Module 7 - 7,713' Module 6 - 7,267' Module 5 - 7,338' Module 4 - 7,424' Module 3 7,500' Module 2 - 7,572' Module 1 - NA TOC 2806 ft ISO ISO CIBP STANDARD WELL PROCEDURE NITROGEN OPERATIONS 12/08/2015 FINAL v1 Page 1 of 1 1.) MIRU Nitrogen Pumping Unit and Liquid Nitrogen Transport. 2.) Notify Pad Operator of upcoming Nitrogen operations. 3.) Perform Pre-Job Safety Meeting. Review Nitrogen vendor standard operating procedures and appropriate Safety Data Sheets (formerly MSDS). 4.) Document hazards and mitigation measures and confirm flow paths. Include review on asphyxiation caused by nitrogen displacing oxygen. Mitigation measures include appropriate routing of flowlines, adequate venting and atmospheric monitoring. 5.) Spot Pumping Unit and Transport. Confirm liquid N2 volumes in transport. 6.) Rig up lines from the Nitrogen Pumping Unit to the well and returns tank. Secure lines with whip checks. 7.) Place signs and placards warning of high pressure and nitrogen operations at areas where Nitrogen may accumulate or be released. 8.) Place pressure gauges downstream of liquid and nitrogen pumps to adequately measure tubing and casing pressures. 9.) Place pressure gauges upstream and downstream of any check valves. 10.) Wellsite Manager shall walk down valve alignments and ensure valve position is correct. 11.) Ensure portable 4-gas detection equipment is onsite, calibrated, and bump tested properly to detect LEL/H2S/CO2/O2 levels. Ensure Nitrogen vendor has a working and calibrated detector as well that measures O2 levels. 12.) Pressure test lines upstream of well to approved sundry pressure or MPSP (Maximum Potential Surface Pressure), whichever is higher. Test lines downstream of well (from well to returns tank) to 1,500 psi. Perform visual inspection for any leaks. 13.) Bleed off test pressure and prepare for pumping nitrogen. 14.) Pump nitrogen at desired rate, monitoring rate (SCFM) and pressure (PSI). All nitrogen returns are to be routed to the returns tank. 15.) When final nitrogen volume has been achieved, isolate well from Nitrogen Pumping Unit and bleed down lines between well and Nitrogen Pumping Unit. 16.) Once you have confirmed lines are bled down, no trapped pressure exists, and no nitrogen has accumulated begin rig down of lines from the Nitrogen Pumping Unit. 17.) Finalize job log and discuss operations with Wellsite Manager. Document any lessons learned and confirm final rates/pressure/volumes of the job and remaining nitrogen in the transport. 18.) RDMO Nitrogen Pumping Unit and Liquid Nitrogen Transport. 1 Carlisle, Samantha J (CED) From:Christina Twogood - (C) <ctwogood@hilcorp.com> Sent:Tuesday, May 19, 2020 4:23 PM To:Roby, David S (CED); Ted Kramer Cc:Schwartz, Guy L (CED); Davies, Stephen F (CED); Boyer, David L (CED) Subject:RE: [EXTERNAL] Sundry application for KBU 42-7RD (PTD 208-052) Dave, Ihaveprovidedresponsesbelow. Pleaseletmeknowifthisissufficientlyaddressesyourquestions. KindRegards, ChristinaTwogood OperationsEngineer KenaiAssetTeam,HilcorpAlaska 3800CenterpointDr.,Anchorage,AK99503 (w)907Ͳ777Ͳ8443 (c)907Ͳ378Ͳ7323 From:Roby,DavidS(CED)[mailto:dave.roby@alaska.gov] Sent:Tuesday,May19,20201:41PM To:ChristinaTwogoodͲ(C)<ctwogood@hilcorp.com> Cc:Schwartz,GuyL(CED)<guy.schwartz@alaska.gov>;Davies,StephenF(CED)<steve.davies@alaska.gov>;Boyer, DavidL(CED)<david.boyer2@alaska.gov> Subject:[EXTERNAL]SundryapplicationforKBU42Ͳ7RD(PTD208Ͳ052) Christina, Ihaveacoupleofquestionsonthissundryapplication. 1) IntypeofrequestthePerforateNewPoolboxischecked,butifyoulookatthecurrentandproposed schematicsthecurrentshowstheA10andA11sandsareopenandeverythingbelowthemisisolated.The proposedschematicshowsaddingperfsintheA8,A9,andA10sands.Basedonsandsinvolveditsoundslike thiswellisalreadycompletedintheSterlingandthusyou’renotinfactperforatinganewpool.AmImissing somethinghere?Iapologizeforthiswasanoversightonmypart.Wearenotperforatingintoanewpool. a. OnarelatednoteiftheexistingA10andA11sandsaretrulySterlingsandsthenHilcorphasbeen reportingproductionforthiswellwrongforthepast4yearssinceallproductionhasbeenreported againsttheBeluga/UpperTyonekpoolinsteadoftheSterlingpool.Ifthisisthecaseyou’llneedto submitrevisedproductionforthiswellsincetheAsandsperfswerefirstputonline.ThiswasanExcape wellcompletedintheBeluga/Tyonekthathasbeenofflinesince2009.Therewasa404submittedwhen theA10andA11sandswereperforatedwhichwereneverproductivesotherehasneverbeenany productionfromthispoolonthiswell.Areyouseeingproductionreported/allocatedtothiswellwithin thepast4years? 2) InthedescriptionofworkandtheproposedschematicitsaysaCIBPisgoingtosetabovetheexistingperfs,yet theperftableontheproposedschematicstillshowstheexistingA10andA11perfsasbeingopeninsteadof 2 isolated.Canyouconfirmwhatactuallywillbeopenandisolatedaftertheproposedwork?Aftertheplugisset, theexistingA10andA11perfswillbeisolated.Onlythenewperforationswillbeopen. Regards, DavidRoby SeniorReservoirEngineer AlaskaOilandGasConservationCommission 907Ͳ793Ͳ1232 CONFIDENTIALITYNOTICE:ThiseͲmailmessage,includinganyattachments,containsinformationfromtheAlaskaOilandGasConservation Commission(AOGCC),StateofAlaskaandisforthesoleuseoftheintendedrecipient(s).Itmaycontainconfidentialand/orprivilegedinformation. Theunauthorizedreview,useordisclosureofsuchinformationmayviolatestateorfederallaw.IfyouareanunintendedrecipientofthiseͲmail, pleasedeleteit,withoutfirstsavingorforwardingit,and,sothattheAOGCCisawareofthemistakeinsendingittoyou,contactDaveRobyat907Ͳ 793Ͳ1232ordave.roby@alaska.gov. 1 Carlisle, Samantha J (CED) From:Christina Twogood - (C) <ctwogood@hilcorp.com> Sent:Thursday, May 21, 2020 12:05 PM To:Schwartz, Guy L (CED) Cc:Ted Kramer Subject:RE: [EXTERNAL] KBU 42-07 perf sundry (PTD 208-052) Attachments:KBU 42-07RD CBL - 4000-4200 ft.JPEG; KBU 42-07RD CBL - Additional Est TOC .JPEG; 42-07 RD Final.xls Guy, I’veattachedthescannedimagefilesfortheKBU42Ͳ07RDCBLshowingperforationintervalandestimatedTOC. AsuccessfulMITontheIAwasperformedonthiswellearlierthismorning,on5Ͳ21Ͳ2020.Ihaveattachedthechartfor yourreview. Thankyou, ChristinaTwogood OperationsEngineer KenaiAssetTeam,HilcorpAlaska 3800CenterpointDr.,Anchorage,AK99503 (w)907Ͳ777Ͳ8443 (c)907Ͳ378Ͳ7323 From:Schwartz,GuyL(CED)[mailto:guy.schwartz@alaska.gov] Sent:Monday,May18,202011:26AM To:ChristinaTwogoodͲ(C)<ctwogood@hilcorp.com> Subject:[EXTERNAL]KBU42Ͳ07perfsundry(PTD208Ͳ052) Christine, IsthereaCBLonthiswell?Seemslikethereshouldbeasitwasacementpackerwell. Ifnot,pleaseprovidethecementingdetailsonthelongstringtosubstantiatetheTOC.Also.thiswellwillrequirea MITontheIAto2000psibeforeperforating. Thanks! GuySchwartz Sr.PetroleumEngineer AOGCC 907Ͳ301Ͳ4533cell 907Ͳ793Ͳ1226office 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). 2 Data Collection ReportChassisLeft Scale Right ScaleSerial Number823373 567620DatatypeUpperUnitsPSI GUpper2040.02050.02060.02070.02080.02090.02100.02110.02120.042-07 RD MIT 21-May-2020, 01:01:54AM - 2:26:34 AM, 1271 data points PSI G STATE OF ALASKA ALIKA OIL AND GAS CONSERVATION COM ION REPORT OF SUNDRY WELL OPERATIONS 1.Operations Abandon U Plug Perforations U Fracture Stimulate U Pull Tubing❑ Operations shutdown ❑ Performed: Suspend ❑ Perforate ❑✓ Other Stimulate ❑ Alter Casing❑ Change Approved Program ❑ Plug for Redrill ❑ 8rforate New Pool LI Repair Well ❑ Re-enter Susp Well❑ Other: ❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Name: Hilcorp Alaska,LLC Development Q Exploratory ❑ 208-052 3.Address: 3800 Centerpoint Drive,Suite 1400 Stratigraphic❑ Service ❑ 6.API Number: Anchorage,AK 99503 50-133-20488-01-00 7.Property Designation(Lease Number): 8.Well Name and Number: ADL028142 Kenai Beluga Unit 42-7RD 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Kenai Field/Beluga-Tyonek Upper Gas Pool 11.Present Well Condition Summary: 4,010';4,015' Total Depth measured 7,926 feet Plugs measured 5,200';5,700' RECEIVED true vertical 7,588 feet Junk measured N/A RECEIVED Effective Depth measured 4,010 feet Packer measured N/A feet JUN 2016 true vertical 3,796 feet true vertical N/A feetoG(C Casing Length Size MD ND Burst Collapse Structural Conductor 117' 20" 117' 117' 3,060psi 1,500psi Surface 1,099' 13-3/8" 1,099' 1,093' 3,450psi 1,950psi Surface 651' 13-3/8" 1,750' 1,732' 5,020psi 2,260psi Intermediate 4,094' 9-5/8" 4,094' 3,873' 5,750psi 3,090psi Production 7,901' 3-1/2" 7,901' 7,563' 10,160psi 10,540psi Perforation depth Measured depth See Attached Schematic ED g + 6 9(17 k' True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) N/A N/A N/A N/A Packers and SSSV(type,measured and true vertical depth) N/A N/A N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 260 Subsequent to operation: 0 0 0 0 30 14.Attachments(required per 20 AAC 25.070,25.071,&25.283) 15.Well Class after work: Daily Report of Well Operations ❑✓ Exploratory❑ Development Service ❑ Stratigraphic ❑ Copies of Logs and Surveys Run ❑ 16.Well Status after work: Oil ❑ Gas ElWDSPL❑ Printed and Electronic Fracture Stimulation Data ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 316-199 Contact Taylor Nasse-777-8354 Email tnasset hilcorp.com Printed Name t Iq.4Chad Helgeson Title Operations Manager Signature A ,E,7l� '. Phone 907-777-8405 Date G 2,(Ab N y-'e,/G Form 10-404 Revised 5/2015 RBDMS LU JUN 2 2 2016 Submit Original Only • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date KBU 42-7RD E-Line 50-133-20488-00 208-052 4/12/16 5/10/16 Daily Operations: 04/12/2016-Tuesday Meet at office, PTW,JSA and mobe to location. Rig up lub, p/t 250 psi low and 2,500 psi high. TP 110 psi. Ran 2.75" GR/JB, tie into Weather Quad Combo log dated 4-28-08 and tagged at 5,212'. No problems and POOH. Ran log and sent to town just to see if we were off. NOTE: Found fluid level at 780'. Ran in hole with 2.75" CIBP and tie into Weather Quad Combo log dated 4-28-08. Run correlation log and send to town. Get ok to set plug at 5200'._Set plug at 5,200' with 100 psi on tubing. Lost about hundred lbs line wt when plug set. Picked up 50' and went back down and tagged plug. Looks good. POOH. Ran in hole with 2.5" x 20' dump bailer filled with 4 gals cement (10') and dump cement on top of plug at 5,200'. EST TOC at 5,190'. POOH, good dump. Cement in place at 1450 hrs. Rig down lubricator and wait on cement.TP 100 psi. 04/14/2016-Thursday Hilcorp office, discuss job, permit. Inspect location, lay tarps, spot equipment on KBU 42-7RD,JSA, PJSM, rig up .125" slickline. PT lubricator to 500/2,500psi, pass. RIH w/2.50" cent, 1.75" sample bailer. Tag fluid @ 651' KB, S/D @ 5,159' KB, work to 5,172' KB, POOH. OOH w/ 1 cup of wet cement. RIH w/2.00" DD bailer. S/D @ 5,173' KB drive bailer to 5,175' KB. Hard bottom, POOH. OOH w/set cement. Swab fluid out of well from 651'to 5,100'. Got 39-40 bbls fluid out of well. Rig down lubricator and turn well over to field to perforate tomorrow. 04/15/2016- Friday Meet at office, PTW,JSA and mobe to location. Rig up lub, PT 250 psi low and 2,500 psi high.TP 248 psi. RIH w/2-3/8" x 10' HC, 5 spf, 60 deg phase, tie into Weather Quad Combo log dated 4-28-08, and tag cement at 5,179'. Run correlation log and send to town. Get ok to shoot from 5,Q57'to 5.067'. Spot gun and fire with 248.8 psi. Went to 250 psi and then 251.8 psi after 5 min. All shots fired and gun was wet. RIH w/2-3/8" x 10' HC, 5 spf, 60 deg phase, tie into Weather Quad Combo log dated 4-28-08. Run correlation log and send to town. Get ok to shoot from 5024'tQ.5,.Q34'. Spot gun and fire with 239.1 psi. Went to 241.6 psi after 5 min.All shots fired and gun was wet. Rig down lubricator and turn well over to field. 04/19/2016-Tuesday Meet at office. Mobe to location. PTW and JSA. Spot and rig up lubricator. P/T to 250 psi low and 2,500 psi high. Well didn't act like it broke over and pushed water away into formation.Talked running the GPT tool with Pollard and got a good price to make it worth while to run it. RIH with 1-11/16" GPT tool and tied into Weather Quad Combo log dated 4-28-08. Found fluid level at 3,660' with 700 psi on surface (held at that pressure all night).Tagged at 5,047' (1,268 psi BHP). POOH. RIH w/2.75" CIBP and tied into Weather Quad Combo log dated 4-28-08. Ran correlation log and sent to town. Get ok to set plug at 5,015'. Set plug, pick up 50' and go back down hole and tag plug lightly at 5,015'. Good set. POOH. Everything looked good. RIH w/2.5" x 20' dump bailer(filled with 4 gals of cement) and dumped 10' of cement on top of plug at 5,015'. Est TOC at 5,005' and cement in place at 1500 hrs. POOH. Good dump Rig down lubricator and wait on cement. • • Hilcorp Alaska, LLC Well Operations Summary Well Name Rig API Number Well Permit Number Start Date End Date KBU 42-7RD E-Line 50-133-20488-00 208-052 4/12/16 5/10/16 Daily Operations: 04/23/2016-Saturday Hilcorp office, discuss job, permit. Inspect location, lay tarps, spot equipment on KBU 42-7RD,JSA, PJSM, rig up .160" slickline. PT lubricator to 500/2,500psi, pass. RIH w 3-1/2" swab mandrel and cup. Fluid @ 3,581' KB. RIH w 2.50" Cent, 1.75" bailer. Tag cement @ 4,982' KB. Sample cement. RIH w/3-1/2" swab mandrel and cup. Fluid level approx 4,960' KB. 10.5 bbls of fluid to tank. 04/27/2016-Wednesday Meet at office. SIMOPS, PTW and JSA. Mobe to equipment to location and spot up. Rig up lubricator and pressure test to 250 psi and 2,500 psi. Ran 2-2/3" x 20' Connex HC, 5 spf, 60 deg phase and tie into Pollard GPT tool dated 4-19-16. Run correlation log and send to town. Get ok to perf from 4,027' to 4,047'. Fired shot with 20 psi on tubing. Saw no pressure increase. POOH, all shots fired. Pressure was 35 psi. Gun wasn't wet. Got moist formation sand out of bull plug. Left it with Chris. Rig down lubricator and turn well over to field. 05/05/2016-Thursday Meet at office. SIMOPS, PTW and JSA. Mobe to equipment to location and spot up. Rig up lubricator and pressure test to 250 psi and 2,500 psi. RIH w/2.75" OD CIBP and tie into Halliburton perf log dated 4-27-16. Run correlation log and send to town. Got ok to set plug at 4,010'. Spotted top of plug at 4,010' and set plug with 60 psi tubing pressure. Indicated good set. Lost about 100 lbs when plug set and POOH, we were 25 lbs light. Also went back down and tagged plug. Got out of hole and setting tool looked good. RIH with 2-1/2" x 20' dump bailer with 4 gals of cement in it. Tagged plug lightly at 4,010'. Dump bailed 10' of cement on plug. Est TOC is 4,000' and cement in place at 1300 hrs. Rig down lubricator and turn well over to field. WOC. 05/10/2016-Tuesday Meet at office, PTW and JSA. Mobe equipment to location and spot up. Rig up lubricator and pressure test to 250 psi and 2,500 psi. RIH w/2-3/8" x 20' HC, 5 spf, 60 deg phase perf gun and tie into Halliburton perf log dated 4-27-16 and tag TOC at 4,003'. Run correlation log and send to town. Get ok to perf from 3,961' to 3,981'. Fired shot from 3,961' to 3,981' with 0 psi on tubing. Pressure went to 50 psi right away. POOH up to 100' and then pulled tight. We got blown up hole and it kinked their line. Pollard cut and strip and got tools and line out of hole.The guns were wet.TP was 70 psi when we shut swab. Re-headed line and tested. RIH w/2-3/8" x 20' HC, 5 spf, 60 deg phase perf gun and tie into Halliburton perf log dated 4-27-16 and tag fill at 3,939'. Run correlation log and send to town. Get ok to perf from 3,898'to 3,918'. Fired shot from 3,898'to 3,918'with 90 psi on tubing. Did not gain or lose any pressure. POOH. Gun was wet. Rig for standby. . • Kenai Gas Field . 14 SCHEMATIC Well: KBU 42-7RD ' Last Completed: 5/27/2008 fs �� l� r„Alaska,LLC PTD: 208-052 CASING DETAIL RKB=21'AGL(87 KB Elevation) SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 20" I 68 K-55 BTC 12.415 Surf. 1,099' 13-3/8' Surface , 68 L-80 BTC 12.415 1,099' 1,750' `, 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094' tt- 3-1/2" Production 9.3 L-80 Mod 2.992 Surf. 7,901' 13-3/8" ESCAPE SYSTEM DETAILS JEWELRY DETAIL a 41No Depth Item 17 Excape modules placed *" control line fired 1 4,010' CIBP capped w/10'of cement ✓ module 1 thru 52 5,015' CIBP capped w/10'of cement V * control line fired 3 5,200' CIBP capped w/10'of cement v7 4 modules 6 thru 11 , 4 5,700' CIBP 9-5/8" s 42 * control line fired modules 12 thru 17 PERFORATION DETAIL 3 *Ceramic flapper valves below each module as follows: Top Btm Top Btm Sands FT Status sy I *16 Disappearing flappers (MD) (MD) (TVD) (TVD) I ".+ *Standard flapper at Module-1 A10 3,898 3,918 3,695' 3,713' 20 Open t * All 3,961 3,981 3,752' 3,770' 20 Open s FLAPPERS MD(RKB) `"J` I' +'7 4--4-4 Module 17-N/A 61 4,027 4,047 3,812' 3,830' 20 Isolated Module 16-5,793' UB-1 5,024 5,034 4,710' 4,719' 10 Isolated 4'4'. UB-1X 5,057 5,067 4,740' 4,749' 10 Isolated + i'" Module 15-N/A , Module 14-6,043' 5,284' 5,292' 4,954' 4,962' 8 Isolated I tg, Module 13-6,223' 5,306' 5,313' 4,975' 4,982' 7 Isolated ti . ,'' Module 12-6,422' 5,400 5,409' 5,066' 5,075' 9 Isolated 0 yf"', Module 11-6,512' 5,409' 5,423' 5,075' 5,089' 14 Isolated Module 10-6,611' 5,464' 5,470' 5,129' 5,135' 6 Isolated 1',d Module 9-6,862' 5,562' 5,571' 5,226' 5,235' 9 Isolated toil, Module 8-N/A ti Module 7-7,713' 5,726' 5,736' 5,389' 5,399' 10 Isolated ::77,,, - Module 6-7,267' 5,773' 5,783' 5,436' 5,446' 10 Isolated + 5,956' 5,966' 5,619' 5,629' 10 Isolated t Module 5 7,338' �t`' Module 4-7,424' 6,023' 6,033' 5,686' 5,696' 10 Isolated Module 3 7,500' Upper 6,203' 6,213' 5,866' 5,876' 10 Isolated + Module 2-7,572' Ty&ek 6,402' 6,412' 6,065' 6,075' 10 Isolated 1 s Module 1- NA Beluga 6,492' 6,502' 6,155' 6,165' 10 Isolated + 5; 6,591' 6,601' 6,253' 6,263' 10 Isolated t +°; 6,842' 6,852' 6,504' 6,514' 10 Isolated " r 7,040 7,050' 6,702' 6,712' 10 Isolated A 7,093' 7,103' 6,755' 6,765' 10 Isolated OT,,, 7,247' 7,257' 6,909' 6,919' 10 Isolated 7,318' 7,328' 6,980' 6,990' 10 Isolated 7,404' 7,414' 7,066' 7,076' 10 Isolated ' 7,480' 7,490' 7,142' 7,152' 10 Isolated 4 ( 7,552' 7,562' 7,214' 7,224' 10 Isolated t"' TV 1/1 7,593' 7,603' 7,255' 7,265' 10 Isolated „ 3 ". OPEN HOLE/CEMENT DETAIL OJf 1 ► 13-3/8" 17-1/2"hole,Cmt w/734 sks of class G BTC @ 1,750'MD 9-5/8" 12-1/4"hole,Cmt w/654 sks of class G BTC @ 5,582 ;Iii 8-1/2" hole,Cmt w/349 sks(206 bbls)10.5 ppg lead&689 sks(142 bbls) 15.8 ppg tail(class G cmt). 3-1/2" 8rd with 6.25"OD control line protectors to 7901' RKB. Estimated TOC @ 1,926',2,106'above window TD=7,926'MD/7,588'(TVD) opening. PBTD=7,833'MD/7,495'(ND) Updated by DMA 06-02-16 -2__O-o`5 Seth Nolan Hilcorp Alaska, LLC 221 + GeoTech 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 II Irurp:Ua.ka.I.IA Fax: 907 777-8510 DATA O OGED E-mail: snolan@hilcorp.com 5K BENDER DATE 05/19/16 RECEIVED To: Alaska Oil & Gas Conservation Commission I4��4�12 0 2016 Makana Bender Natural Resource Technician ®r'rC 333 W 7th Ave Ste 100 Anchorage, AK 99501 SAMPLE TRANSMITTAL KBU 42-07RD Prints: Perforation Record CD 1: KBU X42.-07_RD_PERF_27APR16_LAS,zip ` LS 20161:32 PH zip Archive 29 KB fJ KBU 42_07_RD_PERF 27APR16.pdf S,1312016 12:58 PM PDF Document 970 KB KBU_42_07_RD_PERF_27APR16_img.tif 5113f2016 22:58 PM TIF File 1,6+15 KB Please include current contact information if different from above. SCONEp JUN 1 3 2016'. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8337 Received By: Date: • • tiOF7.4 • e, THE STATE Alaska Oil and Gas N _= Of jLAsKA Conservation Commission 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 p� Main: 907.279.1433 ALASFax: 907.276.7542 www.aogcc.alaska.gov SOWED Y' ! f`i, i 'jjb Chad Helgeson Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga/Upper Tyonek Gas Pool, KBU 42-7RD Permit to Drill Number: 208-052 Sundry Number: 316-199 Dear Mr. Helgeson: 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 2-414 Chair DATED this 2 'day of March, 2016. RBDMS ut- MAR 3 1 2016 . 0 • RECEIVED STATE OF ALASKA MAR 2 2 2016 • ALASKA OIL AND GAS CONSERVATION COMMISSION S s1.2 /1 , e APPLICATION FOR SUNDRY APPROVALS AOGG 20 AAC 25.280 1.Type of Request: Abandon ❑ Plug Perforations E • Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ❑ Perforate Q - Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2.Operator Name: Hilcorp Alaska,LLC 4.Current Well Class: 5.Permit to Drill Number: Exploratory ❑ Development E . 208-052 ' 3.Address. 3800 Centerpoint Drive,Suite 1400 Stratigraphic ❑ Service ❑ 6.API Number: Anchorage,Alaska 99503 50-133-20488-01 - 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? 510A ' Kenai Beluga Unit 42-7RD Will planned perforations require a spacing exception? Yes ❑ No p 9.Property Designation(Lease Number): 10.Field/Pool(s): ADL028142 - Kenai Gas Field/Beluga-Upper Tyonek Gas 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth TVD: MPSP(psi): Plugs(MD): Junk(MD): 7,926' ' 7,588' ' 7,833' 7,495' 1,728psi 5,700' N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 117' 20" 117' 117' 3,060psi 1,500psi Surface 1,099' 13-3/8" 1,099' 1,093' 3,450psi 1,950psi Surface 651' 13-3/8" 1,750' 1,732' 5,020psi 2,260psi Intermediate 4,094' 9-5/8" 4,094' 3,873' 5,750psi 3,090psi Production 7901' 3-1/2" 7,901' 7,563' 10,160psi 10,540psi Perforation Depth MD(ft): 'Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): N/A; N/A N/A; N/A - 12.Attachments: Proposal Summary ❑✓ Wellbore schematic ❑✓ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development ❑✓ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: April 5,2016 CommencingOperations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: GAS ❑� - WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Taylor Nasse-777-8354 Email tnasseehilcorp.com Printed Name Chad Helgeson Title Operations Manager .. SignatureK z ' fr 4 Phone 907-777-8405 Date 3/2?L f , COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number. 9C1 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Post Initial Injection MIT Req'd? Yes ❑ No ❑ Spacing Exception Required? Yes iiiNo ©' Subsequent Form Required: /r c�0" [o 7 RBDMS Lt- MAR 3 1 2016 APPROVED BY Approved by: ,,( �. COMMISSIONER THE COMMISSION Date: 3— -/ -,?3--it., Submit Form and Form 10-403 vised 11/2015 0 RteaRctriiitalid for 12 months from the date of approval. ytachments in Duplicate i Well Prognosis Well: KBU 42-07RD Hilcoru Alaska,LL Date: 3/22/2016 Well Name: KBU 42-07RD API Number: 50-133-20488-01 Current Status: Shut In Leg: N/A Estimated Start Date: April 5, 2016 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg. Approval Rec'vd: Regulatory Contact: Donna Ambruz 777-8305 Permit to Drill Number: 208-052 First Call Engineer: Taylor Nasse (907) 777-8354 (0) (907)903-0341 (M) Second Call Engineer: Chad Helgeson (907) 777-8405 (0) (907) 229-4824 (M) AFE Number: Maximum Expected BHP: —2,251 psi @ 5,235' TVD (Assumed 0.43 psi/ft gradient) Max. Potential Surface Pressure: — 1,728 psi (0.10psi/ft gas gradient) Brief Well Summary KBU 42-07RD is an Excape completion drilled in 4/2008. The slot was originally the KBU 42-07 which was re- drilled because the casing parted and the well sanded off. The KBU 42-07RD only produced briefly from 4/2008 to 11/2008 and failed mechanically due to well loading issues. In 2/2009 the well was kicked off again with CT but it died a few weeks later. HAK plugged back the well and completed in the Upper Beluga sands but was unsuccessful due to commingled water with gas sands. - The purpose of this work/sundry is to set a plug above the open UB sands and add perforations. Notes Regarding Wellbore Condition r • Well is SI, unable to sustain flow.Current SITP is 260 psi. '- • Estimated TOC is at 1,926' MD. E-line Procedure: 1. MIRU E-line, PT lubricator to 2,500 psi Hi 250 Low. 2. MU 3-1/2" CIBP and setting tool. 3. RIH and set CIBP at+/-5200'. POOH w/setting tool. 4. MU dump bailer and fill w/cement. 5. RIH and dump cement on top of CIBP (10' =4 gallons). POOH w/dump bailer. 6. RD E-line. Slickline Procedure (if indication of water in wellbore after setting plug) 7. MIRU SL and PT lubricator to 2,500 psi Hi 250 Low. 8. RIH w/swab cups and swab well dry, or below proposed perfs. 9. RD SL. E-Line Procedure 10. MIRU e-line and pressure control equipment. PT lubricator to 2,500 psi Hi 250 Low. • . Well Prognosis Well: KBU 42-07RD iia °"°Alaska,LL Date: 3/22/2016 a. If necessary, bleed pressure down or add pressure with natural gas as requested by the RE to establish a drawdown on the formation. 11. Perforate with 2-3/8" 5 SPF 60 deg phased perf guns.All intervals are planned for 10 SPF so each may be shot twice. Send the correlation pass to the Operations Engineer, Reservoir Engineer, and Geologist for confirmation. Proposed Perforated Intervals Sands Top (MD) Btm (MD) FT Upper Beluga UB-1X ±5,057 ±5,067 ±10 Upper Beluga UB-1 ±5,024 ±5,034 ±10 Isolate w/CIBP and 10' of cement prior to moving to next sand Sterling B1 ±4,027 ±4,047 ±20 Isolate w/CIBP and 10' of cement prior to moving to next sand Sterling All ±3,961 ±3,981 ±20 Sterling A10 ±3,898 ±3,918 ±20 Sterling A8 ±3,819 ±3,829 ±10 12. POOH. 13. Flow well through test separator and record water and gas rates. 14. If any sand is not commercial or wet, the zone will be permanently plugged back and steps 1-11 will be followed for the next interval. 15. RD e-line. Attachments: 1. Actual Schematic 2. Proposed Schematic • • Kenai Gas Field Well: KBU 42-7RD - SCHEMATIC Last Completed: 5/27/2008 PTD: 208-052 flacon)Alaska.LLC CASING DETAIL RKB=21'AGL(87 KB Elevation) SIZE TYPE WT GRADE CONN ID TOP BTM. ' 4 �,, d . ;,',' . ' ' 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 20 a,• r1 .,"")'Xi., 68 K-55 BTC 12.415 Surf. 1,099' /, '.1 ? 13-3/8' Surface '',i's ` '- M'. 68 L-80 BTC 12.415 1,099' 1,750' ' '; ' 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094' 3/8 ? 3 1/2" Production 9.3 L-80 Mod 2.992 Surf. 7,901' ;,i, A ESCAPE SYSTEM DETAILS JEWELRY DETAIL <,.; , ,Ai * 17 Excape modules placed No Depth Item ., e , control line fired I thru 5 1 5,700' CIBP i 1,,-,,:,,° Yellows +ntrol li PERFORATION DETAIL p.,t,. modues6thru11 9-5/a , * control line fired modules Top Btm Top Btm ir w' Sands FT Status thru 17 (MD) (MD) (TVD) (TVD) *Ceramic flapper valves below 5,284' 5,292' 4,954' 4,962' 8 Open 4:1 each module as follows: 5,306' 5,313' 4,975' 4,982' 7 Open I` AI *16 Disappearing flappers ( IV *Standard flapper at Module-1 5,400 5,409' 5,066' 5,075' 9 Open i 5,409' 5,423' 5,075' 5,089' 14 Open pFLAPPERS MD(RKB) 5,464' 5,470 5,129' 5,135' 6 Open °° _�♦ ', , 1 Module 17-N/A 5,562' 5,571' 5,226' 5,235' 9 Open y11; ;I tloy d+; Module 16-5,793'Module 15-N/A 5,726' 5,736' 5,389' 5,399' 10 Isolated ,T,Aroi I " if 5,773' 5,783' 5,436' 5,446' 10 Isolated k , Module 14-6,043' Module 13 6,223' 5,956' 5,966' 5,619' 5,629' 10 Isolated Module 12-6,422' 6,023' 6,033' 5,686' 5,696' 30 Isolated '.I � - Module 11-6,512' Tyonek Upper 6,203' 6,213' 5,866' 5,876' 30 Isolated Module 10 6,611' y& 6,402' 6,412' 6,065' 6,075' 111000 0 Isolated ! 44' Module 9 6,862' Beluga 6,492' 6,502' 6,155' 6,165' 10 Isolated Module 8-N/A 6,591' 6,601' 6,253' 6,263' 10 Isolated 1 9 Module 7-7,713' 6,842' 6,852' 6,504' 6,514' 10 Isolated Module 6 7,267' 7,040' 7,050' 6,702' 6,712' 10 Isolated Module 5-7,338' `.itu 7,103' i Module 4-7,424' t � 7,247' 7,257' 6,755' 6,909' 6,765' 10 Isolated 6,919' 10 Isolated Module 3 7,500' Module 2-7,572' 7,093' 7,318' 7,328' 6,980' 6,990' 10 Isolated P . 7,404' 7,414' 7,066' 7,076' 10 Isolated Module 1- NA I i 7,480' 7,490' 7,142' 7,152' 10 Isolated 7,552' 7,562' 7,214' 7,224' 10 Isolated 7,593' 7,603' 7,255' 7,265' 10 Isolated i ,'. OPEN HOLE/CEMENT DETAIL tiq fair 13-3/8" 17-1/2"hole,Cmt w/734 sks of class G BTC @ 1,750'MD ,,.�,,��;; I ,,Y 9-5/8" 12-1/4"hole,Cmt w/654 sks of class G BTC @ 5,582 .4 i 1 8-1/2" hole,Cmt w/349 sks(206 bbls) 10.5 ppg lead&689 sks(142 bbls)15.8 ppg tail(class G cmt). ''1^ � yr", 3-1/2" 8rd with 6.25"OD control line protectors to 7901' RKB. Estimated TOC @ 1,926',2,106'above window opening. Vi a,, L_J yy izv TD=7,926'MD/7,588'(TVD) PBTD=7,833'MD/7,495'(TVD) Created By:TDF 2/3/2014 PROPOSED Gas Field IP Well: KBU 42-7RD _ H 0 SCHEMATIC Last Completed: 5/27/2008 Hilcorp Alaska.1.1.0PTD: 208-052 CASING DETAIL RKB=21'AGL(87'KB Elevation) SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' � 20' 68 K-55 BTC 12.415 Surf. 1,099' 13-3/8' Surface 68 L-80 BTC 12.415 1,099' 1,750' 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094' Butt- 3-1/2" Production 9.3 L-80 Mod 2.992 Surf. 7,901' 13-3/8' • ESCAPE SYSTEM DETAILS JEWELRY DETAIL * 17 Excape modules placed No Depth Item / * control line fired J module 1 thru 5 1 5,200' CIBP capped w/10'of cement 2 5,700' CIBP * control line fired modules 6 thru 11 9-5/8 * control line fired modules PERFORATION DETAIL 12 thru 17 Top Btm Top Btm *Ceramic flapper valves below Sands (MD) (MD) (TVD) (TVD) FT Status each module as follows: A8 ±3,819 ±3,829 ±3,623' ±3,632' 10 Proposed • *16 Disappearing flappers A10 ±3,898 ±3,918 ±3,695' ±3,713' 20 Proposed II *Standard flapper at Module-1 All ±3,961 ±3,981 + FLAPPERS MD(RKB) -3,752' ±3,770' 20 Proposed fI ! • 131 ±4,027 ±4,047 ±3,812' ±3,830' 20 Proposed ;-4/ -2 Module 17-N/A UB-1 ±5,024 ±5,034 ±4,710' ±4,719' 10 Proposed '♦ Module 16-5,793' UB-1X ±5,057 ±5,067 ±4,740' ±4,749' 10 Proposed Module 15-N/A 5,284' 5,292' 4,954' 4,962' 8 Isolated Module 14-6,043' Module 13 6,223' 5,306' 5,313' 4,975' 4,982' 7 Isolated ( Module 12-6,422' 5,400 5,409' 5,066' 5,075' 9 Isolated 4 , Module 11-6,512' _ 5,409' 5,423' 5,075' 5,089' 14 Isolated _ Module 10-6,611' 5,464' 5,470' 5,129' 5,135' 6 Isolated Module 9 6,862' 5,562' 5,571' 5,226' 5,235' 9 Isolated Module 8 N/A 5,726' 5,736' 5,389' 5,399' 10 Isolated Module 7-7,713' 5,773' 5,783' 5,436' 5,446' 10 Isolated Module 6-7,267' Module S-7,338' 5,956' 5,966' 5,619' 5,629' 10 Isolated Dil 6,023' 6,033' 5,686' 5,696' 10 Isolated l , Module 4-7,424' Upper 6,203' 6,213' 5,866' 5,876' 10 Isolated Module 3 7,500' Tyonek 6,402' 6,412' 6,065' 6,075' 10 Isolated Module 2-7,572' & ? + 6,492' 6,502' 6,155' 6,165' 10 Isolated Module 1- NA Beluga 6,591' 6,601' 6,253' 6,263' 10 Isolated ". 6,842' 6,852' 6,504' 6,514' 10 Isolated ,;r '.q4..? 7,040' 7,050' 6,702' 6,712' 10 Isolated t'',1:‘„; 7,093' 7,103' 6,755' 6,765' 10 Isolated ,r 7,247' 7,257' 6,909' 6,919' 10 Isolated k g'i' 7,318' 7,328' 6,980' 6,990' 10 Isolated GGG tt aS6 7,404' 7,414' 7,066' 7,076' 10 Isolated 7,480' 7,490' 7,142' 7,152' 10 Isolated Di 7,552' 7,562' 7,214' 7,224' 10 Isolated 7,593' 7,603' 7,255' 7,265' 10 Isolated OPEN HOLE/CEMENT DETAIL 13-3/8" 17-1/2"hole,Cmt w/734 sks of class G BTC @ 1,750'MD 9-5/8" 12-1/4"hole,Cmt w/654 sks of class G BTC @ 5,582 W 8-1/2"hole,Cmt w/349 sks(206 bbls) 10.5 ppg lead&689 sks(142 bbls)15.8 ppg tail(class G cmt). 3-1/2" 8rd with 6.25"OD control line protectors to 7901' RKB. Estimated TOC @ 1,926',2,106'above window opening. TD=7,926'MD/7,588'(IVD) PBTD=7,833'MD/7,495'(TVD) Modified By:TWN 3/18/2016 • Image Project Well History File Covera 9 Project ry Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. •, 08 - ©"., Well History File Identifier Organizing (done) ❑ Two -sided 111 I ❑ Rescan Needed III IIIIIIIiI 111111 R CAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: /Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: 4120 Date: /s/ P Project Proofing 111 Itililil 1111111 .(3 it BY: Date: /s P �Il 114 Scanning Preparation x 30 = Igo + 1 v = TOTAL PAGES ' - I BY: Date: 3 1 7 (Count does not i nclude cover sheet) /s/ Production Scanning III I Stage 1 Page Count from Scanned File: i I q (Count does include cover heet) Page Count Matches Number in Scanning Preparation: J/ YES NO BY: Date: 31 ( 7/11 /s/ Vii 13 Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. III I 1111 ReScanned 1111 111111 fi 111,1 BY: Maria Date: /s/ Comments about this file: Quality Checked Ill tIlllllltlllIll 10/6/2005 Well History File Cover Page.doc }»J`» 9 a„ ���I%% THE STATE 1 -!' c F a e, ��� a �,�,�Ew'1.•'2 t C L u�140 .i9 S 333 West Seventh Avenue %,te. GOVERNOR SEAN PARNELI_ Anchorage Alaska 9950E3572 ,vorr 9C7 SCOE Mike Dunn 5/-- 0 59- ) Operations Manager © Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga/Upper Tyonek Gas Pool, Kenai Beluga Unit 42-7RD Sundry Number: 314-046 Dear Mr. Dunn: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy P Foerster Chair DATED this day of January, 2014. Encl. (0 Li, R i',..: G' ; .qW H A STATE OF ALASKA l'1:1" `- ALASKA OIL AND GAS CONSERVATION COMMISSION 1,' I.0 1 APPLICATION FOR SUNDRY APPROVALS 0)-as if Zcl 14f-- 20 AAC 25.280 0 "`` 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approv Program ❑ Suspend ❑ Plug Perforations ❑ Perforate E. Pull Tubing ❑ Time Extension 0 Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ I Other: Isolate Q • 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory ❑ Development Q • 208-052 3.Address: Stratigraphic ❑ Service ❑ 6.API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-133-20488-01-00 ' 7.If perforating: /1,c)` C/C 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? C� R/_ L(-/v Will planned perforations require a spacing exception? Yes ❑ No Q Kenai Beluga Unit 42-7RD • 9.Property Designation(Lease Number): 10.Field/Pool(s): ise,/�L V(e�(�- c 'e �{�,^S '.c's�_ ADL028142 • Kenai s rieicr/dp Fyen��(�►�r,zi* 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth ND(ft): Plugs(measured): . Junk(measured): 7,926 ' 7,588 . 7,833 7,495 N/A N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 117' 20" 117' 117' 3,060psi 1,500psi Surface 1,099' 13-3/8" 1,099' 1,093' Surface 651' 13-3/8" 1,750' 1,732' 3,450psi 1,950psi Intermediate 4,094' 9-5/8" 4,094' 3,873' 5,750psi 3,090psi Production 7,901' 3-1/82" 7,901' 7,563' 10,160psi 10,540psi Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): N/A N/A 12.Attachments: Description Summary of Proposal ❑ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory El Stratigraphic❑ Development ❑✓ • Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 1/24/2014 Oil ❑ Gas Q • WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: N/A WINJ El GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Mike Dunn Email mdunnhilcorp.com Printed Name Mi.e Du;. / Title Operations Manager Signature , / - Phone 777-8382 Date 1/17/2014 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: J -0140 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ D Other: RBDM MAY U 9 2014 Spacing Exception Required? Yes ❑ No 151 Subsequent Form Required: /']/0 — 1-6 1- { APPROVED BY Approved by: ?fie.,02_____„pCOMMISSIONER THE COMMISSION Date: /- Z 2- /� Submit Form and p1A Form 10-403(-e��10/�12) 2� `ApprOWdRicOl taIId r 2 months from the date of approval. Attachments in Duplic a `-` Well Prognosis Well: KBU 42-7RD PTD: 208-052 Ililcorp Alaska,LLI API: 50-133-20488-01-00 Well Name: Kenai Unit 42-07RD API Number: 50-133-20488-01-00 Current Status: SI Gas completion Leg: N/A Estimated Start Date: 2/1/2014 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 (0) Permit to Drill Number: 208-052 First Call Engineer: Mike Dunn (907)777-8382 (0) (907) 351-4191 (M) Second Call Engineer: Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Current Bottom Hole Pressure: —1,855psi based on RFT in 2007 in MB1A Sand Maximum Expected BHP: —1,855psi ') Max.Anticipated Surface Pressure: —2,018psi (Based on 0.03 psi/ft gas gradient) Brief Well Summary: KBU 42-07RD is an Excape completion drilled in 4/2008. The slot was originally the KBU 42-07 which was re- drilled because the casing parted and the well sanded off. The KBU 42-07RD only produced briefly for from 4/2008 to 11/2008 and failed mechanically due to well loading issues. In 2/2009 the well was kicked off again with CT but it died a few weeks later. Several LIB runs have shown severe casing damage at the module at 5782' MD(module#16)and the well has been shut in since 2/2009. Justification: Several perforation targets have been identified above the casing damage. Summary Procedure: 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. RIH with GM/CCL and run correlation log using EXPRO GR/CCL Log dated 5/13/2008. 3. RIH with GR/CCL&CIBP and correlate on depth and set same at±5,770. ELOH. 4. RIH with GR/CCL& perf guns and correlate on depth and perforate±5,758'to±5,768' &5,716'to f 5,722'. ELOH. 5. RD Eline. 6. Turn well over to production &flow test well. PERFORATION DETAIL Sands Top(MD) Btm(MD) Top(TVD) (Np) FT Status ±5,716' ±5,722' ±5,379' ±5,385' 6' Open Upper Tyonek& ±5,758' ±5,768' '±5,421' ±5,431' 10' Open • Beluga B 5,726' 5,736' 5,389 5,399' 10' Open Well Prognosis Well: KBU 42-7RD PTD: 208-052 Hilcorp Alaska,t.ia API: 50-133-20488-01-00 Contingency Procedure-To be executed if original perforations do not produce as expected: 1. RU E-line and test lubricator to 250psi low/2,500psi high. 2. RIH with GR/CCL& perf guns and correlate on depth and perforate: PERFORATION DETAIL Sands Top(MD) Btm(MD) Top(ND) (Np) FT Status ±5,284' ±5,292' ±4,954' ±4,962' 8 Open ±5,306' ±5,313' ±4,975' ±4,982' 7 Open Upper Tyonek& ±5,399' ±5,422' ±5,066' ±5,088' 23 Open Beluga B ±5,464' ±5,470' ±5,129' ±5,135' 6 Open ±5,560' ±5,569' ±5,224' ±5,233' 9 Open ELOH. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic t KBU 42-7RD U 4 Permit#: 208-052 API#: 50-133-20488-01-S1 Pad 41-7 If Iitcorp Alaska Property Des: A-028142 37'FNL, 4,118' FWL KB: 21'AGL (87'KB Elevation) Conductor X. 275,022.43 Sec. 7, T4N, R11 W, S.M. 20" K-55 133 ppf Y. 2,361,975.39 p Bottom Lat: 60° 27' 31.782" N MD Surf 117' Long: 151° 14' 54.738" W iND Surf 11TSpud: 17:00 hrs 4/15/2008t1 :.:TD Reached: 4/26/2008 Rip Release: 9/10/2008 �° Surface Casing n 13-3/8" 68 ppf PA: Kenai Unit-Beluga PA .' I. a ]p Bottom #891006367C K-55 MD Surf 1,099' TVD Surf 1,093' } L-80 MD 1,099 1,750 _ �<�� ND 1,093 1,732 17-1/2"hole,Cmt w1734 sks of class G BTC @ 1,750'MD Top of Cement(est.) ' Intermediate Casing (Window cut @ 4,094'MD) * (est.)@ 1,926'MD 9-5/8" L-80 40 ppf * 2,168'above window opening t Top Bottom V'' MD Surf 4,094'(window) '7 TVD Surf 3,873 f 12-1/4"hole,Cmt w/654 sks of class G • Excape System Details y," BTC @ 5,582 -13 Disappearing flappers t 11 -Mod 1,8,15 and 17-no flappers i ,, Production Tubing -Ceramic flapper valves below I l 3-1/2" L-80 9.3 ppf Butt-Mod each module as follows: t Top Bottom *Modules 7&8 connected w/flapper I1 below Module 7 MD Surf 7,901' *Modules 14&15 connected w/flapperI,'6 TVD Surf 7,563' below Module 14 Ilit raM *Modules 16&17 connected with 8-1/2"hole,Cmt w/349 sks(206 bbls)10.5 ppg lead& flapper below Module 16 • III 689 sks(142 bbls)15.8 ppg tail(class G cmt). 8rd with Flappers MD(RKB): '`. * 6.25"OD control line protectors to 7901' RKB. Module 17 - NA v: Ii. Module 16 - 5,793' C Module 15 - NA nl t Excape System Details Module 14 - 6,043' ? - 17 Excape modules pra ed Module 13 - 6,223' - control line forino�ules 12-17 Module 12 - 6,422' I - controlline for modules 6-11 Green control lie for bottom 5 module Module 11 - 6,512' 4). -Al)modules w/flappers above module 1 are Module 10 - 6,611' l* 4> d'sagpe rin flapper versions. Module 9 - 6,862' .. Pens MD K Module 8 - NA" 1 r4 Module 16- 171=5iModule 7 - 7,113' odule1g5Module 6 - 7,26T odule 12- 4 - 4 ' Module 5 - 7,338' '; Module 4 - 7,424' 11 Module 11 - 6,492'-6,502' Module 3 - 7,500' C Module 10- 6,591'-6,601' Module 2 - 7,572' • l Module 9 - 6,842'-6,852' Module 1 - NA d Module 8 - 7,040'-7,050' �l Module 7 - 7,093'-7,103' Module 6 - 7,247'-7,257' Module 5 - 7,318'-7,328' l Module 4 - 7,404'-7,414' Module 3 - 7,48Q'-7,490' Module 2 - 7,552'-7,562' (i Module 1 - 7,593'-7,603' r ,k v t t }' TD PBTD 7,926' MD 7,833' MD 7,588' TVD 7,495' TVD Well Name&Number: Kenai Beluga Unit 42-7 ReDrill Lease: Kenai Gas Field, A-028142 County or Parish. Kenai Peninsula Borough State: Alaska Country: USA Perforations(MD). 5,726'-7,603' Perf(TVD): 5,389'-7,265' Angle @ KOP and Depth: -2°/100 ft starting @ 400'MD Angle/Perfs: -1.33° BHT: 131° Completion Fluid: 6%KCL Dated Completed: 5/27/2008 Ground Level(MSL): 66'TVD Revised by: Craig Rang Last Revison Date: March 18,2010 1/17/2014 11:35 AM l Kenai Gas Field ..• Well: KBU 42-7RD PROPOSED Last Completed: 5/27/2008 Hi[cora Alaska,LLC PTD: 208-052 CASING DETAIL RKB=21'AGL(87 KB Elevation) SIZE TYPE WT GRADE CONN ID TOP BTM. 20" Conductor 133 K-55 N/A 18.730 Surf. 117' 20" 68 K-55 BTC 12.415 Surf. 1,099' ' 13-3/8' Surface • 68 L-80 BTC 12.415 1,099' 1,750' 9-5/8" Intermediate 40 L-80 BTC 8.835 Surf. 4,094' tt- 3-1/2" Production 9.3 L-80 Mod 2.992 Surf. 7,901' 13-3/8" OA ESCAPE SYSTEM DETAILS JEWELRY DETAIL • * 17 Excape modules placed Y6 p No Depth Item • 1 ±5,770' CIBP �,' Yellow PERFORATION DETAIL 9-5/8' Top Btm Top Btm `��` @„1 Sands FT Status (MD) (MD) (TVD) (TVD) *Ceramic flapper valves below ±5,716' ±5,722' ±5,379' ±5,385' 6 Open • 4. each module as follows: ±5,758' ±5,768' ±5,421' ±5,431' 10 Open y+ .100 *16 Disappearing flappers '� *Standard flapper at Module-1 5,726' 5,736' 5,389' 5,399' 10 Open 5,773' 5,783' 5,436' 5,446' 10 Isolated ;: FLAPPERS MD(RKB) 5,956' 5,966' 5,619' 5,629' 10 Isolated 4,1 _4 1 Module 17-N/A 6,023' 6,033' 5,686' 5,696' 10 Isolated 1;1a x.' Module 16-5,793' �� #'a) 6,203' 6,213' 5,866' 5,876' 10 Isolated Module 15-N/A kil If -' 41 r 6,402' 6,412' 6,065' 6,075' 10 Isolated iff, Module 14-6,043' Upper ► yf►1 Module 13 6,223' T onek 6,492' 6,502' 6,155' 6,165' 10 Isolated Tyonek 6,601' 6,253' 6,263' 10 Isolated 1 Module 12-6,422' & �i 6,842' 6,852' 6,504' 6,514' 10 Isolated w Module 11-6,512' Beluga '. i° 1 M Module 10-6,611' 7,040' 7,050' 6,702' 6,712' 10 Isolated I 11 Module 9-6,862' Module 8-N/A 7,093' 7,103' 6,755' 6,765' 10 Isolated t 7,247' 7,257 6,909' 6,919' 10 Isolated ' Module 7-7,713' 7,318' 7,328' 6,980' 6,990' 10 Isolated 41 Module 6 7,267 7,404' 7,414' 7,066' 7,076' 10 Isolated I t Module 5-7,338' 7,480' 7,490' 7,142' 7,152' 10 Isolated �:j Module 4-7,424' 7,552' 7,562' 7,214' 7,224' 10 Isolated Module 3 7,500' I Module 2-7,572' 7,593' 7,603' 7,255' 7,265' 10 Isolated Lt Module 1- NA II N OPEN HOLE/CEMENT DETAIL i.!' 13-3/8" 17-1/2"hole,Cmt w/734 sks of class G BTC @ 1,750'MD 9-5/8" 12-1/4"hole,Cmt w/654 sks of class G BTC @ 5,582 I F"3 I 8-1/2"hole,Cmt w/349 sks(206 bbls)10.5 ppg lead&689 sks(142 bbls) 15.8 ppg tail(class G cmt). e . i 3-1/2" 8rd with 6.25"OD control line protectors to 7901' RKB. Estimated TOC @ 1,926',2,106'above window y 1 4 opening. `I 4 syt 1Y h titcoxo TD=7,926'MD/7,588'(TVD) PBTD=7,833'MD/7,495'(ND) Created By:TDF 1/17/2014 DATA SUBMITTAL COMPLIANCE REPORT 3/9/2011 Permit to Drill 2080520 Well Name /No. KENAI BELUGA UNIT 42 -07RD Operator MARATHON OIL CO API No. 50- 133 - 20488 -01-00 MD 7926 TVD 7588 Completion Date 5/27/2008 Completion Status 1 -GAS Current Status 1 -GAS UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survek Yes i DATA INFORMATION Types Electric or Other Logs Run: Refer to log list attached (data taken from Logs Portion of Master Well Data Maint . Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med /Frmt Number Name Scale Media No Start Stop CH Received Comments pt Report: Final Well R 0 0 Open 10/31/2008 Final Well Report, Table of Content, Mud Crew and Equip, Well Detals, Geo 1 Data, Drilling Data, Daily Reports, j L6g Mud Log 2 Col 4078 7926 Open 10/31/2008 MD Formation log og Mud Log 2 Col 4078 7926 Open 10/31/2008 TVD Formation log �9g Mud Log 2 Col 4078 7926 Open 10/31/2008 MD Drilling Dynamics Log Mud Log 2 Col 4078 7926 Open 10/31/2008 TVD Drilling Dynamics tog Induction /Resistivity 25 Blu 3873 7569 Open 10/31/2008 TVD Array Induction , Log Induction /Resistivity 25 Blu 3873 7906 Open 10/31/2008 MD Array Induction . Log Induction /Resistivity 25 Blu 4094 7906 Open 10/31/2008 MD Array Induction, Vectat processing Log Induction /Resistivity 25 Blu 4094 7906 Open 10/31/2008 MD Compact Quad Combo Quicklook Log Sonic 25 Blu 4094 7894 Open 10/31/2008 MD Sonic og Caliper log 5 Blu 4094 7867 Open 10/31/2008 MD Caliper hole volume j og Neutron 25 Blu 4094 7868 Open 10/31/2008 MD Phot Den Dual Spaced Neutron og Cement Evaluation 5 Blu 3750 7794 Case 10/31/2008 MD Dual Radial CBL, GR, CCL DATA SUBMITTAL COMPLIANCE REPORT 3/9/2011 Permit to Drill 2080520 Well Name /No. KENAI BELUGA UNIT 42 -07RD Operator MARATHON OIL CO API No. 50- 133 - 20488 -01 -00 MD 7926 TVD / �7588 Completion Date 5/27/2008 Completion Status 1 -GAS Current Status 1 -GAS UIC N r D 17349-'Induction /Resistivity 3014 7911 Open 12/31/2008 Final Well Report, Table of Content, Mud Crew and Equip, Well Detals, Geo Data, Drilling Data, Daily Reports, PDF Mud Log - _ - -- -- graphics, • Well Cores /Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? AN) Daily History Received? ' N Chips Received? - Sr N Formation Tops �Y Analysis V# Received? Comments: Compliance Reviewed By: ' , i ___ Date: 41 )(L111 SARAH PALIN, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279 -1433 FAX (907) 276-7542 Michael Dammeyer Production Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 Re: Kenai Gas Field, Upper Tyonek /Beluga Pools, KBU 42 -7RD Sundry Number: 309 -032 Dear Mr. Dammeyer: 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair DATED this day of February, 2009 Encl. � -tea 1 • Marathon Oil Company A Marathon Alaska Asset Team P.O. Box 1949 M ARATHON OiI Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 January 27, 2009 RECEIVED Mr. Tom Maunder JAN 2 8 '/OU9 Alaska Oil & Gas Conservation Commission Alaska OiI & Gas Cons. Commission 333 W 7 Ave Anchorage, Alaska 99501 Anchorage Reference: 10 -403 Application for Sundry Approvals Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -7RD Dear Mr. Maunder: Enclosed please find the Application for Sundry Approvals, 10 -403, for KBU 42 -7RD well. Solids have infiltrated the wellbore covering over 13 of the 17 Excape modules. Marathon requests permission to utilize a coil tubing unit to remove this material. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, . a rte. Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Application for Sundry Approvals cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS MDD / $t 4) f j /AL ASKA OI L AND GAS CONSERVATION STATE OF ALASKA • �' (' P 1 EY 14? 7 COMMIS S ION. } � ..1,A; 2 F x:009 � �� , 0k \ "" 4 APPLICATION FOR SUNDRY APPROVALS � % 1.Ty 20 AAC 25.280 Alaska pi) & s Cons. Commis� a of Request: Abandon ❑ Suspend ❑ Operational shutdown ❑ Perforate ❑ Waiver chorage Other LLJ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Time Extension Coil Tubing Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Re -enter Suspended Well ❑ Clean Out 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development 0 Exploratory ❑ 208 - 052' 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: oo Kenai Alaska, 99611 -1949 50- 133 - 20488- 01=S9- 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes 111 No D Kenai Beluga Unit 42 -7RD 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): ■ A - 028142 / 87' (21' AGL) ' Kenai Gas Field / Upper Tyonek & Beluga Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7,926' - 7,588' - 7,833' - 7,495' - NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' 3,060 psi 1,500 psi Surface 1,078' 13 -3/8" 1,099' 1,093' 3,450 psi 1,950 psi Surface 651' 13 -3/8" 1,750' 1,732' 5,380 psi 2,670 psi Intermediate 5,561' 9 -5/8" 5,582' 5,322' 5,750 psi 3,090 psi Production 7,884' 3 -1/2" 7,901' 7,563' 10,160 psi 10,540 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 5,726' - 7,603' 5,389' - 7,265' 3 - 1/2" L - 80 7,901' Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory ❑ Development 0 r Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: February 10 , 2009 Oil ❑ Gas 0 - Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 - 1371 Printed Name Michael D. Dammeyer Title Production Engineer Signature Phone (907) 283 -1333 Date January 27, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3, .o O Plug Integrity ❑ BOP Test i. Mechanical Integrity Test ❑ Location Clearance ❑ Other: J 4Lv (AS t1 t,\, , 4 S gzyr \O • V .. Subsequent Form Required: V P1.110$ FL F LB ci s, 2r109 APPROVED BY /5/ Approved by: 1 COMMISSIONER THE COMMISSION Date: 2. Form 10 -403 Revised 06/200. ORIGINAL Submit in Duplicate • • M M MARATHON OIL COMPANY ALASKA REGION KBU 42 -7RD Kenai Gas Field Pad 41 -7 Coil Tubing Cleanout Procedure (1.75" CT) WBS # WO.09.19490.EXP * ** Notify the AOGCC James Regg (a), 907 - 276 -7542 at least 24hr prior to testing BOP's * ** Notes: • 3 -1/2" tubing Excape (3- 1/16" flange) 17 modules. PBTD 7833'. Perfs 5726'- 7603'. • PT Tag 11/14/08 indicated fill to 7310' ELM (bottom 5 modules covered). • Well stopped flowing as of November 08 (prior rates 2 -4 MMcfpd & —180 psi FTP). MIRU MOC flow -back equipment and prepare site 1) Open -top flow -back tank. 2) Gas buster (chain in place on tank using KGF fork lift). 3) Choke skid. 4) Flow back iron. 5) 150 bbl Atigun fluid supply tank. 6) Fill tank with about 70 bbl McOH water (warehouse /vac trucks). 7) 500 bbl Rain - for -Rent fluid supply tank with heater tubes. 8) Fill supply tank with 6% KC1 w/ 1 gal/m FRW -14 or desired amount. 9) Steam -on- Wheels to heat KC1 water before job. 10) Diesel fuel man-lift and two light towers. 11) Call electricians to unplug wellhouse. 12) UOSS crane to remove well house. 13) ASRC to lay liner and berm area around tanks and wellhead. MIRU BJ 13/4" coil tubing and nitrogen * * * * * Refer to BJ Clean Out procedure for more details 1) Obtain Safe Work Permit. Perform PJSM and fill out JSA. 2) Spot CTU with 1 CT work reel and pumping equipment. 3) Nipple up on 3- 1/16" 10M flange with flow cross & BOP (place pump -in sub below BOP). 4) Rig up 2" hard line, N2 lines, etc. 5) Test BOP's via pump -in -sub to 250/4500 psi w/ 50/50 McOH/H20 (use bar for pipe rams). 6) Test flow -back iron 250/4500 psi with 50/50 McOH /water. 7) Submit report to AOGCC. 8) Fill coil reel; note volumes on barrel counter /displacement tank; compare with theoretical. 9) Make up coil connector. Pull test connector to 10k. KBU 11 -8Y Coil Tubing Clean Out Procedure MDD - 1/27/2009 7:42:24 AM i Page 2 of 2 Make up BHA with 2" Wash Nozzle 1) Make up BHA (verify max OD of tools does not exceed wellbore) 2) R/U injector and shell test via CT to 1500 psi. Note: circulate to gas buster and record return pressure at 1.0, 1.5, 2.0 bpm. 3) Open well. RIH pumping warmed 6% KCL water at minimum rate (0.25 bbl /min), performing pull test every 3000' (minimum). 4) At 5600', increase flow to 1.75 bpm. Compare with theoretical. 5) At 5700', slow speed to 9 fpm. Note: if too much fill is attempted to be circulated, lost circulation can occur with potential sticking. If this happens, pull above the perforations or further until circulation is restored. 6) Perform back jetting passes when washing through fill, with pull tests as needed. Monitor returns to verify removal. If returns are visible at buster, check pressure at choke manifold based upon prior measurements. If not lacking returns, consider N2 @ 350 scf/m. 7) Clean out well at to 7833' MD. Reciprocate and wash perforations as necessary. Pump bottoms up twice or until returns come back clean. Jet in well 1) Bring on N2 @ 500 scf/m. 2) POOH jetting well dry. RD injector and lubricator 1) RDMO BJ coiled tubing and nitrogen units. 2) Release rental equipment and ensure that all liner, drums, etc are disposed of properly. 3) Haul off water from returns tank to G &I. 4) RD flow -back iron. 5) Release tanks and all rental equipment to vendors. 6) Fill out Well Release Form and hand well over to operators. Place well on sales and plan forward 1) Prepare and submit Form 10 -404 sundry report to the AOGCC. 2) Prepare to run capstring to bottom perforation ASAP. CONTACTS Michael Dammeyer: 907-283-1333 (w) Clyde Scott: 713 - 296 -2336 (w) 907 - 394 -8270 (c) Lyndon Ibele: 907 - 565 -3042 (w) Ken Walsh: 907 - 283 -1311 (w) 907 -748 -2819 (c) 907 - 394 -3060 (c) KGF Operators: 907 - 283 -1305 KBU 11 - Coil Tubing Clean Out Procedure MDD - 1/27/2009 7:42:24 AM • Permit #: 208 -052 K B U 42 -7 R D API #: 50- 133 - 20488 -01 -S1 Pad 41 -7 Property Des: A - 028142 KB: 21' AGL (87' KB Elevation) 37'FNL, 4,118' FWL MARATHON x= 275,022.43 Sec. 7, T4N, R11 W, S.M. Y= 2,361,975.39 Lat: 60° 27' 31.782" N Condu20" ctor j LLIN Bottom ppf Spud: 17:00 hrs 4/15/2008 MD K -55 curt 117' TD Reached: 4/26/2008 TVD Surf 117' Riq Release: 9/10/2008 Surface Casing PA: Kenai Unit- Beluga PA 13 -318° 68 ppf #891006367C - T,Dg Bottom K -55 MD Surf 1,099' TVD Surf 1,093' Top of Cement (est.) L -80 MD 1,099 1,750 * (est.) @ 1,926' MD t TVD 1,093 1,732 * 2,168' above window opening 17 -1/2" hole, Cmt w /734 sks of class G BTC (a 1,750' MD !! 1 Intermediate Casing (Window cut @ 4,094' MD) Excape System Details . 9 L - 80 40 ppf er valves below "lap Bottom - Ceramic flapper MD Surf 4,094' (window) each module as follows: TVD Surf 3,673' * Modules 7 & 8 connected w /flapper "° 12 - 1/4" hole, Cmt wl 654 sks of class G III: ; k below Module 7 .. ' BTC @ 5,582 * Modules 14/15 connected w /flapper I below Module 14 Production Tubing * Modules 16 & 17 connected with II 3 - 1/2" L - 80 9.3 ppf Butt Mod flapper below Module 16 ( Top Bottom MD Surf 7,901' !!., TVD Surf 7,563' Flappers MD (RKB): loo; I t Module 17 - NA n; C 8 -1/2" hole, Cmt wl 349 sks (206 bbls) 10.5 ppg lead Module 16 - 5,780' ) & 689 sks (142 bbls) 15.8 ppg tail (class G cmt). Module 15 - NA iljil Module 14 - 6,031' �S 8rd with 6.25" OD control line protectors to 7901' RKB. Module 13 - 6,213' ht' 10 t Module 12 - 6,410' ,-,. . Excape System Details Module 11 - 6,501' 111".i f _17 Excape modules placed - Red control line for modules 12 - 17 Module 10 - 6,599' Di control line for modules 6 -11 Module 9 - 6,851' Green control line for bottom 5 modules Module 8 - NA" �� - All modules w/ flappers above module 1 are Module 7 - 7,104' Dt disappearing flapper versions. Module 6 - 7,260' C ` ) Perfs MD (RKB): Module 5 - 7,329' 9 DI f Module 17 - 5,726' - 5,736' Module 4 - 7,415' ) Module 16 - 5,773' - 5,783' Module 3 - 7,492' 1 Module 15 - 5,956' - 5,966' Module 2 - 7,565' Module 14 - 6,023' - 6,033' Module 1 - NA ) Module 13 - 6,203' - 6,213' ry Module 12 6,402' 6,412' 11 Module 11 - - 6,492' - - 6,502' Module 10 - 6,591' - 6,601' t , ., Module 9 - 6,842' - 6,852' a Module 8 - 7,040' - 7,050' g w Module 7 - 7,093' - 7,103' Excape Float Shoe @ 7,833' MD '' Module 6 - 7,247' - 7,257' 4. Module 5 - 7,318' 7,328' TD I I pgTp Module 4 - 7,404' - 7,414' Module 3 - 7,480' - 7,490' 7,926' MD 7,833' MD Module 2 - 7,552' - 7,562' 7,588' TVD 7,495' TVD Mndule 1 - 7 593' - 7 603' Well Name & Number Kenai Beluga Unit 42 -7 ReDrill Lease: Kenai Gas Field, A - 028142 County or Parish: Kenai Peninsula Borough State: Alaska Country:/ USA Perforations (MD): 5,726' - 7,603' Perf (TVD): 5,389' - 7,265' Angle @ KOP and Depth: - 2° / 100 ft starting © 400' MD Angle /Perfs: -- 1.33° BHT:I 131° Completion Fluid: 6% KCL Dated Completed: 5/27/2008 Ground Level (MSL): 66' TVD Revised by: Kevin Skiba Last Revison Date: November 3, 2008 1/22/2009 8:58 AM • Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON 011 Company Telephone 907/283 -1371 Fax 907/283 -1350 December 16, 2008 Ms Christine Mahnken Alaska Oil & Gas Conservation Commission 333 W 7 Ave Anchorage, Alaska 99501 Reference: Compact Disk Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -7RD a6fr- Dear Ms Mahnken: Enclosed is the compact disk containing the electronic well information for KBU 42 -7RD well. Marathon is resubmitting this data in accordance with your request. Please verify that this information satisfies your request and completes the information submittal requirements for KBU 42 -7RD well. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Please direct any returning correspondences to me utilizing the address in the letterhead. Sincerely, l u , e/V - 1" 4 -/ — Kevin J. Skiba Engineering Technician Enclosures: Well data Compact Disk cc: Houston Well File Kenai Well File KJS Page 1 of 1 • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, November 10, 2008 12:24 PM To: DOA AOGCC Prudhoe Bay Subject: KBU,37RD (208 -052) Does anyone have any record of having been contacted by Marathon beginning 4/30 regarding shutting in this well due to lost circulation /kicks? I have been reviewing the operations summary and they had significant losses and were SI on more than 1 occasion. Roland did send an email on May 1 requesting to delay the BOP test and mentioned due to the lost circulation, but I don't have anything regarding the issues they fought for the next 3 — 4 days. Thanks, Tom 11/10/2008 • • Marathon Oil Company Alaska Asset Team M Marathon P.O. Box 1949 Kenai, AK 99611 MARATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 RFCFIVED October 16, 2008 U . __ 3 x,, :008 Mr. Tom Maunder Alaska Ord, °, Alaska Oil & Gas Conservation Commission , ° Commission 333 W 7 Ave Anchorage Anchorage, Alaska 99501 Reference: 10 -407 Well Completion Report and Log Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -7RD Dear Mr. Maunder: Enclosed please find the 10 -407 Well Completion Report and Log for KBU 42 -7RD well. KBU 42 -7RD was side - tracked and completed into the Beluga and Upper Tyonek formations with seventeen Excape modules. All of the modules were perforated and fracture stimulated. Accompanying this sundry is a List of Attachments stating the documents which are being submitted, at this time. The electronic formatted well information will be submitted at a later date since it was not available at mailing time. Please contact me at (907) 283 -1371 if you have any questions or require additional information. Sincerely, - e-ttlIAA-- 1- ( 9 - • Kevin J. Skiba Engineering Technician Enclosures: 10 -407 Well Completion Report & Log cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS Directional Survey CLR t Well Logs ` STATE OF ALASKA /0" ALASIPOIL AND GAS CONSERVATION COMMISSN WELL COMPLETION OR RECOMPLETION REPORT AND LOG FALSE Oil ❑ Gas o Plugged ❑ Abandoned ❑ Suspended ❑ 1 b. Well Class: 20AAC 25.105 20AAC 25.110 Development IO Exploratory ❑ GINJ❑ WINJ❑ WDSPL WAG Other No. of Completions: 1 Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or jiff 12. Permit to Drill #: 208 - 052 Marathon Oil Company Aband.: 5/27/2008 Sundry #: 308 -179 & 308 - 276 3. Address: PO Box 1949 6. Date Spudded: 13. API Number: Kenai Alaska, 99611 - 1949 4/15/2008 50 133 - 20488 - 01 - 00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 37' FNL, 4,118' FWL, Sec. 7, T4N, R11W, S.M. - 4/26/2008 Kenai Beluga Unit 42 - 7RD Top of Productive Horizon: 8. KB (ft above MSL): 87' 15. Field /Pool(s): 1,393' FNL, 518' FEL, Sec. 7, T4N, R11W, S.M. Ground (ft MSL): 66' Total Depth: 9. Plug Back Depth(MD +TVD): Kenai Gas Field / Beluga & Upper 1,414' FNL, 558' FEL, Sec. 7, T4N, R11W, S.M. 7,833' 7,495' Tvonek Pools 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 275,022.43 y- 2,361,975.39 Zone- 4 7,926' 7,588' A- 028142 TPI: x- 275,422.00 y- 2,360,497.00 Zone- 4 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x- 275,378.00 y- 2,360,480.00 Zone- 4 NA 18. Directional Survey: Yes 111 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost (TVD): (Submit electronic and printed information per 20 AAC 25.050) NA (ft MSL) NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): , Refer to Log List Attachment , & 1O? - v26(.? S7d 7 D 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 20" 133 K -55 0' 117' 0' 117' Driven NA NA 13 -3/8" 68 K -55 0' 1,099' 0' 1,093' 17 -1/2" 734 sks, class G NA 13 -3/8" 68 L -80 1,099' 1,750' 1,093' 1,732' 17 -1/2" " NA 9 -5/8" 40 L -80 0' 5,582' 0' 5,322' 12 -1/4" 654 sks, class G NA 3 -1/2" 9.3 L -80 0' 7,901' 0' 7,563' 8 -1/2" 1,038 sks, class G NA 23. Open to production or injection? Yes isi No ❑ If Yes, list each 24. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) MD TVD Perfs 3 -1/2" 7,901' NA 5,726' - 5,736' 5,388 '- 5,398' 0.28" hole, 6 spf 5,773' - 5,783' 5,436' - 5,446' 0.28" hole, 6 spf 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. 5,956' - 5,966' 5,619' - 5,629' 0.28" hole, 6 spf DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 6,023' - 6,033' 5,686' - 5,696' 0.28" hole, 6 spf 5,726' - 5,736' 12,210 Ib of 20/40 sand & 1,709 Ib of flex sand 6,203' - 6,213' 5,866' - 5,876' 0.28" hole, 6 spf 5,773' - 5,783' 6,777 Ib of 20/40 sand 6,402' - 6,412' 6,065' - 6,075' 0.28" hole, 6 spf 5,956' - 5,966' 8,398 Ib of 20/40 sand 6,492' - 6,502' 6,155' - 6,165' 0.28" hole, 6 spf 6,023' - 6,033' 9,317 Ib of 20/40 sand 6,591' - 6,601' 6,253' - 6,263' 0.28" hole, 6 spf 6,203' - 6,213' 9,242 Ib of 20/40 sand 6,842' - 6,852' 6,504' - 6,514' 0.28" hole, 6 spf 6,402' - 6,412' 16,493 Ib of 20/40 sand 7,040' - 7,050' 6,702' - 6,712' 0.28" hole, 6 spf 6,492' - 6,601' 20,020 Ib of 20/40 sand 7,093' - 7,103' 6,755' - 6,765' 0.28" hole, 6 spf 6,842' - 6,852' 35,466 Ib of 20/40 sand 7,247' - 7,257' 6,909' - 6,919' 0.28" hole, 6 spf 7,040' - 7,050' 42,948 Ib of 20/40 sand 7,318' - 7,328' 6,980' - 6,990' 0.28" hole, 6 spf 7,093' - 7,103' 17,154 Ib of 20/40 sand 7,404' - 7,414' 7,066' - 7,076' 0.28" hole, 6 spf 7,247' - 7,257' 16,725 Ib of 20/40 sand 7,480' - 7,490 7,142' - 7,152' 0.28" hole, 6 spf 7,318' - 7,328' 28,837 Ib of 20/40 sand & 4,125 Ib of flex sand 7,552' - 7,562' 7,214' - 7,224' 0.28" hole, 6 spf 7,404' - 7,490' 44,171 Ib of 20/40 sand 7,593' - 7,603' 7,255' - 7,265' 0.28" hole, 6 spf 7,552' - 7,603' 41,350 Ib of 20/40 sand 26. PRODUCTION TEST Date First Production: 9/16/2008 Method of Operation (Flowing, gas lift, etc.): Flowing Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: 10/3/2008 24 Test Period 0 3,193 34.6 34/64 100% Gas Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 557 - 24 -Hour Rate -4 0 3,193 34.6 NA 27. CORE DATA Conventional Core(s) Acquired? Yes ❑ No Ell Sidewall Cores Acquired? Yes ❑ No El If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and su mn arise lithology and presence of oil, gas or water .., ti( ld (submit separate sheets with this form, if needed). Submit detailed descriptions, Core chips, photographs and laboratory analytical results per 20 AAC 25.071' inTg. q Oti i, -) ' Form 10 -407 Revised 2/2007 CONTINUED ON REVERSE ' ` `'- G ea ms ///.z/0 28. GEOLOGIC MARKERS (List all formations and mil encountered): 29. FORMATION TESTS NAME MD 1 TVD Well tested? Yes UNo If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost - Top detailed test information per 20 AAC 25.071. Permafrost - Base Sterling B5 4,491 4,227 Sterling C1 4,801 4,507 Sterling C2 4,950 4,642 Upper Beluga 5,000 4,687 Middle Beluga 5,695 5,357 Lower Beluga 6,436 6,098 Top Tyonek 7,505 7,167 Tyonek 72 -8 7,542 7,204 Tyonek 73 -1 7,645 7,307 Formation at total depth: Tyonek 73 -1 7,926 7,588 30. List of Attachments: Refer to Log List Attachment 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283 - 1371 Printed Name: Craig L. Rang Title: Senior Completions Engineer Signature: Phone: (907) 283-1372 Date: October 16, 2008 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 wet design is changed. Item la: 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 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: 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 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: 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 29: 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 2/2007 • • KBU 42 -7RD Kenai Gas Field Attachment List End of Well Report Well Schematic Directional Survey Operations Summary Logs • Array Induction MD • Array Induction TVD • Photo Density Dual Spaced Neutron MD • Array Induction Vector Processing MD • Compensated Sonic MD • Compact Quad -Combo QuickLook MD • Hole Volume Caliper MD • Dual Radial Cement Bond Gamma Ray /CCL M KBU 42 -7RD Fracture Treatment Material Volumes Clean Slur ry 20/40 Sand Flex Sand Stages Modules bbls bbls Ibs Ibs 1 1 128.0 145 12,210 1,709 2 2 236.4 241 6,777 3 3 145.5 153 8,398 4 4 137.4 147 9,317 5 5 132.0 141 9,242 6 6 138.4 156 16,493 7 7 & 8 148.0 170 20,020 8 9 202.7 240 35,466 9 10 234.7 282 42,948 10 11 161.8 181 17,154 11 12 136.5 155 16,725 12 13 196.8 244 28,837 4,125 13 14 & 15 237.8 290 44,171 14 16 & 17 203.2 249 41,350 Totals 2,439.2 2,794 309,108 5,834 • 0 Permit #: 208 -052 KBU 42 -7RD API #: 50- 133 - 20488 -01 -00 Pad 41 -7 Property Des: A - 028142 37'FNL 4,118' FWL KB: 21' AGL (87' KB Elevation) MARATHON X- 275,022.43 Sec. 7, T4N, R 11W , S .M. Y= 2,361,975.39 Lat: 60° 27' 31.782" N Conductor 20" K -55 133 ppf Long: 151° 14' 54.738" W Top Bottom Spud: 17:00 hrs 4/15/2008 MD Surf 117' TD Reached: 4/26/2008 TVD Surf 117' Rig Release: 9/10/2008 Surface casing `F .1 .:' 13 -318" 68 ppf A Top Bottom r q x K -55 MD Surf 1,099' Top of Cement (est.) TVD Surf 1,093' * (est.) @ 1,926' MD L - 80 MD 1,099 1,750 * 2,168' above window opening e TVD 1,093 1,732 17 -1/2" hole, Cmt w/734 sks of class G BTC Co? 1,750' MD VI S' 't1`, Intermediate Casing (Window cut @ 4,094' MD) Excape System Details ' +* 9 - 5/8" L - 80 40 ppf - Ceramic flapper valves below Top Bottom each module as follows: MD Surf 4,094' (window) TVD Surf 3,873' * Modules 7 & 8 connected w /flapper 12 -1/4" hole, Cmt wI 654 sks of class G below Module 7 *1 T BTC @ 5,582 * Modules 14/15 connected w /flapper below Module 14 L Production Tubing * Modules 16 & 17 connected with 3 L - 80 Tom 9.3 ppf Butt Mod flapper below Module 16 , Bottom MD Surf 7,901' TVD Surf 7,563' Flappers MD (RKB): iw- I Module 17 - NA ttr� 8 -1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 ppg lead Module 16 - 5,780' Lei & 689 sks (142 bbls) 15.8 ppg tail (class G cmt). Module 15 - NA tie Module 14 - 6,031' 1i 8rd with 6.25" OD control line protectors to 7901' RKB. Module 13 - 6,213' 111 Module 12 - 6,410' I Excape System Details Module 11 - 6,501' I -17 Excape modules placed - Red control line for modules 12 - 17 Module 10 - 6,599' control line for modules 6 - 11 Module 9 - 6,851 Green control line for bottom 5 modules - Module 8 - NA" All modules w/ flappers above module 1 are Module 7 - 7,104' disappearing flapper versions. Module 6 - 7,260' ► Perfs MD (RKB): Module 5 - 7,329' Module 17 - 5,726' - 5,736' Module 4 - 7,415' Module 16 - 5,773' - 5,783' Module 3 - 7,492' ^ ♦} Module 15 - 5,956' - 5,966' Module 2 - 7,565' Al ` Module 14 - 6,023' - 6,033' Module 1 - NA J 4 Module 13 - 6,203' - 6,213' 7f� } Module 12 - 6,402' - 6,412' 1 Module 11 - 6,492' - 6,502' Module 10 - 6,591' - 6,601' Module 9 - 6,842' - 6,852' .,,, Module 8 - 7,040' - 7,050' � j1 Module 7 - 7,093' - 7,103' Excape Float Shoe @ 7,833' MD Module 6 - 7,247' - 7,257' Module 5 - 7,318' - 7,328' TD I I PBTD Module 4 - 7,404' - 7,414' Module 3 - 7,480' - 7,490' 7,926' MD 7,833' MD Module 2 - 7,552' - 7,562' 7,588' TVD 7,495' TVD Mndulp 1 - 7 5g3' - 7 Cm' Well Name & Number: Kenai Beluga Unit 42 -7 ReDrill Lease: Kenai Gas Field, A - 028142 County or Parish: Kenai Peninsula Borough State: Alaska Country:I USA Perforations (MD): 5,726' - 7,603' Perf (TVD): 5,389' - 7,265' Angle @ KOP and Depth: - 2° / 100 ft starting @ 400' MD Angle /Perfs: - 1.33° I BHT:I 131° Completion Fluid: 6% KCL Dated Completed: 5/27/2008 Ground Level (MSL): 66' TVD Revised by: Kevin Skiba Last Revison Date: October 8, 2008 10/9/2008 6:58 AM 0 Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 4/15/2008 Job Category: DRILLING 24 Hr Summary TIH w/ 81/2 mill, Clean pits, Slip cut drilling line, Mix 375 bbls.gel plex,Unplug mill, Change over mud, POOH, P/U Window mill assy. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 06 :30 0.50 TRIP_ DP_ AF Continue TIH W/ Mill and scraper.Tag up on retainer at 4101'Drillpipe measurement. Mix Drillplex gel. 06:30 10:30 _ 4.00 CLEAN_ _TANK AF Clean pits. Complete pit cleaning,Slip and cut drilling line. 10:30 15.00 4.50 MIX MUD_ AF Mix gel plex total of 750bb!s mixed, with 450bbls shipped to hanson tank. for hydration. 15:00 20:00 5.00 MIX MUD_ AF Mix Drilplex mud Total of 375bbls mixed 20:00 21:00 1.00 CIRC_ MUD_ AF PJSM;Attempt to Displace KCL with drillplex mud, Mill plugged presured to 1900 psi.Work pipe and reverse thru mill, pump long way still plugged, pull 10 stds. pipe dry , pump long way got circ.,RIH with 10 stds., had full circ. 21:00 23:00 2.00 CIRC_ MUD_ AF Start change over to Drillplex mud, pumped 310 bbls. 23:00 01:30 2.50 TRIP_ DP_ AF PJSM;POOH with scraper and 8 1/2 mill. 01:30 02:00 0.50 PULD_ BHA_ AF Lay down 8 1/2 mill and scraper. 02:00 04.30 2.50 PULD_ BHA_ AF PJSM; Measure, drift and pick up 9 5/8 Window mill assy. 04:30 06 :00 1.50 PULD_ BHA AF PJSM; Measure, drift and pick up (8) 6 1/4 drill collars, Report Date: 41672008 Job Category: DRILLING 24 Hr Summary RIH w/ whipstock assy., Orient whipstock, Mill Window 4078'- 4096'Drill f/4096'- 4116', Circ. B/U Work mills thru window, LOT test 11.1 EMW, POOH, L/D 6 1/4 " ", Serv.rig, P/U BHA. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP_ BHA_ AF Continue RIH W/ BHA. Pulse test mwd. P/U drift and rih w/ HWDP 07:00 09:30 2.50 TRIP DP_ AF RIH W/ 5 "" drillpipe at reduced rate with whipstock 09:30 10:00 0.50 SETREL TOOL AF Orient Whipstock to 20 Right of high side tool face.Up W/ 133k Dn wt 100K Set anchor with 100k / 20k down. P/U to 173k/40K shear /set whipstock . Top of window at 4078' botton of window at 4096' V wrowv.peloton.com Report Printed: 9/18/2008 1 Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 10:00 17:00 7.00 MILL_ WNDW AF Unable to rotate mill due to excessive torque. Work pipe to break rotation. rotary stalling. Recprocate pipe with torque set in. after 35min pipe freed up Mill window f 4078' -4096' Rotary torque 8 -9k 90rpm 193spm 381 gpm 920psi 20k weight on mills.Pit volume at 405bbIs Note Continue to mix Gelplex and ship to hanson tank. Cuttings are leaving the end of shakers dry no fluid loss over shakers. Ditch magnets showing very little metal cuttings, mud suspending metal cuttings until hitting shaker screens. Cement was noted by mud logger . 17:00 21:00 4.00 DRILL_ ROT_ AF ,p_r2iag new 8 112"" hole from 4096' -4116' Up wt. =125K Dn wt. =85K Rt. wt. =100K Tq. =7 -10K No gains no osl ses,Rot. hrs. 4.0 21:00 22:00 1.00 CIRC_ MUD_ AF Circ. bottoms up, work mill assy. thru window rotating, then without rotation, no drag. 22:00 22:30 0.50 TEST_ LOT AF LOT test.9.1 MW, TVD 3891' breakover at 410 psi 11.1 EMW 22.30 23:00 0.50 FLOW_ CHEK AF Check gain and loss, well static, Pump dry job. 23:00 02:00 3.00 TRIP_ DP_ AF PJSM; POOH with 5 "" drill pipe. No Gain / Loss 02:00 03:30 1.50 PULD BHA AF Lay down 6 1/4 "" drill collars and window mill BHA. 03:30 04:00 0.50 CLEAN RIG_ AF Clean / Clear rig floor 04:00 04:30 0.50 SERVIC RIG_ AF PJSM;Service rig and equip. 04:30 06:00 1.50 PULD BHA AF PJSM,Measure, pick up, make up BHA Daily Operations Report Date: 4/17/2008 Job Category: DRILLING 24 Hr Summary Trouble shoot MWD, Replace 3 jts. HWDP, RIH f/794'- 4039', Orient thru window Drill f/ 4116'- 4784', Loss circ. @4784', spot LCM pill, POOH to Window, Build volume. Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP_ BHA_ TA MSOT Attempt to down load MWD. Trouble shoot and repair. MWD will not be able to record pumps off data 08:00 10:00 2.00 TRIP_ BHA_ TA MODS Lay down 3 Jts 5 "" hwdp found damaged faces on pin and boxes. Damages due to down hole torque cutting window. Inspect remaing HWDP While running in hole 10:00 12:00 2.00 TRIP_ DP_ AF RIH w/ 5 "" drill pipe f/794' -4039' Fill up drill pipe, orient tool face for window RIH f/4039' -4116' 12:00 02:30 14.50 DRILL_ ROT_ AF Drill survey (/4116'- 4784' Up wt. =132K Dn wt. =95K Rt wt. =107K Tq.= 6.5 -7.5K Lost circ. at 4784'took114 bbls.(50227 hrs.ART =3.4 AST =4.8 02:30 04:30 2.00 TRIP_ DP_ TA NDLC POOH to 4705' Mix and pump 30 BBL. LCM pill G -Seal, 10 -20 -40 safecarb. Spot pill on bottom. Lost total of 214 bbls. 04:30 06:00 1.50 TRIP_ DP_ TA NDLC POOH to window Orient to 20right and enter shoe.at 4096'. No problem entering shoe. Continue POH. Report Date: 4/18/2008 Job Category: DRILLING 24 Hr Summary POOH, LID MWD tool, P/U MWD, RIH test, RIH t /4034',Mix Mud Vol., RIH t/4784',Drill f/4784' -4799' loss circ., POOH t/4585', Pump 55 bbl. LCM pill, RIH t/4799', drill f/ 4799'- 5009', Pump LCM, POOH t/4500' Ops Trouble I_ Start Time End Time Dur(ha) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 TRIP_ DP_ TA MDMW Continue to POH to replace MWD tool. Not giving toolface updates while sliding. Lay down MWD 10:00 15:00 5.00 MIX_ MUD_ TA NDLC Mix and build mud volume.275bb1s Driliplex mud. RN BJ batch mixer and Mix Gelplex and pump in hanson 300bbIs total . Wait on MWD 15:00 16:30 1.50 TRIP_ BHA_ TA NDLC P/U MWD RIH with BHS Pulse test MWD. RIH with hwdp 16:30 18:30 2.00 TRIP DP TA NDLC RIH with 5" drillpipe to 4034'. Circ fill pipe. 18:30 19:00 0.50 MIX MUD_ _ TA NDLC Complete Mixing Drilplex mud 19:00 20:00 1.00 TRIP_ DP_ TA NDLC RIH f/4034' -4784' No fill no gain or losses 20:00 21:00 1.00 DRILL_ ROT_ AF Drill survey f/4784' -4799' Loss circ. (293 bbls. }Up wt. =135K Dn wt. =110K Rt wt. =92K Tq. =7 -8K AST =.8 ART =.7 21:00 22:00 1.00 TRIP_ DP_ TA NDLC POOH f/47994585' Spot 55 bbl. in side drillpipe LCM pill W/ 12ppb G seal,l0ppb sc -250, 10ppb sc -40 10ppb sc- 20 and 10ppb sc -10 22:00 22:30 0.50 TRIP_ DP TA ' NDLC ' RIH f/4585' -4799' 22:30 03:30 5.00 DRILL_ ROT_ AF Drill survey f/4799'- 5009'Loss circ.(173bbIs) Up wt. =136K Dn wt. =96K Rt wt. =115K Tq.= 6.5 -7.5K AST =2.1 ART =.6 Instal loss of 10bbls then no losses . 03:30 04:30 1.00 MIX LCM_ TA NDLC Build and pump 55 bbls. LCM pill. Note hole taking 3- 5bbls per hour 04:30 05:00 0.50 TRIP_ DP TA NDLC PJSM;POOH f15009' -4500' www.peloton.com Report Printed: 9/18/2008 • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 05:00 06:00 1.00 MIX LCM TA NDLC Mix mud volume and LCM pill. Daily Operations Report Date: 4/19/2008 Job Category: DRILLING 24 Hr Summary Spot LCM pill,RIH t/5009', Pull 5 stds, mix LCM, RIH, Drill f/5087'- 5102',spot pill, POOH to window mix mud volume, RIH t15050' spot pill, still losing, POOH, Laydown BHA, Test BOP Hole stable no gains no Iosses.Install W /B, M/U BHA, RIH, Wait on LCM. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 MIX_ LCM_ TA NDLC Spot 57bb1 Lcm pill W 15pb Gseal 15ppb sc250, lOppb sc40, 10ppb sc20 and 10ppb sc10. Spot in drillpipe. At 4500' 06:30 08:00 1.50 DRILL_ ROT AF RIH to 5009' and drill ahead at 350gpm 1150psi. No losses. Drill f- 5009- 5087. Lost returns - 33bbIs.ECD at MWD tool 10.03ppo at 5027' ART 5 08:00 10:00 2.00 MIX_ LCM_ TA NDLC Pull 5 stands to 4703' Mix LCM pill W/ 3X driplex 10ppb Sc -40, 10ppd SC -20 10ppb Sc -10 20sx G seal. RIH f- 4703 -5087 10:00 10:30 0.50 DRILL_ ROT_ AF Drill f- 5087' -5102 Drill and spot pill At 330gpm Lost 85bbls from 5087 - 5102' ART =.5 10:30 14:30 4.00 TRIP_ DP_ TA NDLC POH to 9 5/8 window To build mud volume- 350bbIs. and let pill soak. Well. No mud loss while orienting bha to enter window 330gpm 950psi . Well static no fluid losses Well appears to be breathing 2bbl gain in 45min' 14:30 15:30 1.00 TRIP DP_ TA 'NDLC Rih f- 4150 -5050' No gain loss 15:30 16:00 0.50 CIRC_ MUD_ TA NDLC Pump 60bb1 Icm pill W/ 15ppb G- seal,l2ppb Sc -40, 12ppb Sc20 12ppb SC -2. At 5055' Pump 74bbls drillplex mud No returns. Total loss of 136bbIs. Pump Pill at 60spm 456psi Pump Drilplex at 330gpm 1100psi. 16:00 17:00 1.00 TRIP_ DP_ TA NDLC Poh W/ 5 "" drillpipe f -5055' -4140' 17:00 18:00 1.00 TRIP_ DP_ TA NDLC Orient thru window , pump dry job. 18:00 20:00 2.00 TRIP_ DP TA NDLC POOH f/4140' 20:00 22:00 2.00 TRIP BHA TA NDLC POOH w/ HWDP, Jars, L/D Mud motor, MWD and BHA 22:00 22:30 0.50 RUNPUL WBSH TA NDLC Pull wear bushing 22:30 02:00 3.50 TEST_ BOPE TA NDLC Test BOP test annular to 250 psi low 3500 psi high.Test all other test 250 psi low 5000 psi high 5 min.Perform Accu. drawdown all test good. Test waived by Bob Noble 4/18/08 -1900 hrs AOGCC, BLM, Tim Lawlor notified 4/18/08. 02:00 02:30 0.50 RUNPUL WBSH TA NDLC Install wear bushing and rig down test equip.Blow down lines 02:30 03:00 0.50 PULD_ BHA_ TA NDLC Make up BHA* 03:00 05:00 2.00 TRIP DP TA NDLC RIH w/ drill pipe to 4008' Top of window. 05:00 06:00 1.00 WAITON OTHR TA NDLC Wait an LCM for lost circ. Report Date: 4/20/2008 Job Category: DRILLING 24 Hr Summary Cut drlg line, W/0 Magma LCM,Mix LCM, Pump 60 bbl.LCM,POH 1/4060' spot 30bbl LCM squeeze away, Pump and spot 34 bbls. LCM Squeeze away @ 500 psi, Circ hole clean, RIH t /5102',Circ. hole.POOHL/D BHA,P /U BHA, RIH Ops Trouble Start Time End Time , Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 OUT WIRE AF . Slip and cut drilling line. Repair #1 charge pump. Rack strap and tally 3 1/2 casing. 10:00 11:00 1.00 WAITON OTHR TA NDLC Wait on Magma Fiber LCM 11:00 12:30 1.50 MIX LCM_ TA NDLC Mix magma fiber,LCM pill 12:30 13:30 1.00 TRIP DP_ TA NDLC RIH to 5102 13:30 14:25 0.92 PUMP_ LCM_ TA NDLC Pump 60bb1 LCM pill W/ 10ppb Magma Fiber 12ppb SC- 250,15 ppb SC -20, 15ppb SC 40 10ppb G -seal 25bb1 pre hydrate gel @ 30ppb 20bb1 H2o 15bbI 9.2 Drilplex mud. Pump at 46spm 2.2bblmin to spot in drillpipe. Pump at 220spm 442psi to spot pill in annulus. No loss of fluid to hole. Atempt to surge role/ No losses 14:25 16:40 2.25 TRIP DP_ TA NDLC POH to 4060' spot 30bbl LCM pill W/ 3ppb Cellflake, 5ppb magma fiber. 10ppg of 240,40and 20 SC and 10ppb gseal. Close bag and squeeze 30bbls inital psi 300 inc to 400, at 135stks 500ps 16:40 17:15 0.58 MIX_ LCM_ TA NDLC Mix LCM pill, 34 bbl. w/ 10 ppb Magma, 3 ppb Cello, 10 ppb SC 20, 10 ppb SC40,10 SC250, 4 ppb G -Seal 17:15 19:30 2.25 PUMP_ LCM_ TA NDLC Pump and spot pill at 4060' Close bag squeeze LCM pill away at 500 psi on drill pipe and 420 psi on annulus, 45 stks.min. 19:30 20:30 1.00 CIRC_ MUD_ TA NDLC Circ. hole clean at 220 stks =800 psi 430 gpm no losses. 20.30 21:00 0.50 TRIP_ DP_ TA NDLC PJSM; RIH to 5102' with 5 "" drill pipe. www.peloton.com Report Printed: 9/18/2008 1 • I Marathon Operations Summary Report lM A N. flit Company We ll Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 21:00 22:00 1.00 CIRC_ MUD_ TA NDLC Circ. hole clean at 5102', got back about 20bbls. LCM over shaker.Pump dry job.Blow down mud lines. 22:00 00:30 2.50 TRIP DP_ TA NDLC PJSM; POOH w /5 "" drill pipe. t/ 2620' 00:30 01:00 0.50 REPAIR RIG_ TA MSHS Brake linkage pin came out. Brake failed while tripping pipe. 01:00 '03:00 2.00 TRIP DP_ TA NDLC Cont. POOH f/2620' Lay down BHA. 03:00 04:30 1.50 PULD_ _ BHA_ TA NDLC PJSM;Make up Mud motor and MWD, trip in to 794', test MWD, OK 04:30 06:00 1.50 TRIP_ DP_ TA NDLC RIH w/ 5 "" drill pipe Daily Operations Report Date: 4121/2008 Job Category: DRILLING 24 Hr Summary RIH and wash last 3 stands down to 5102'. Drill F/5102' to 5103'. Rig repair. Drill F/5103' to 5539' Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP_ DP_ TA NDLC Continue RIH Stop at 4070 Fill drill pipe and orient to 25 /35 Deg Right to exit window at 4074'. Cont. RIH wash last 3 stands to 5102'. 08:30 09:00 0.50 DRILL ROT_ AF Dir drill and survey F/5102' to 5103'w7330gpm with no losses(ART= .2hrs). 09:00 09:30 0.50 REPAIR RIG_ TA MSFL Replace swab in pump#1. 09:30 12:00 2.50 DRILL_ ROT_ AF Dir drill and survey F/5103'- 5160'. Increase pumps F/330gpm to 375gpm w /no losses. Up 142K Dn 105K Rot 120K 75 RPM TQ 7.5 -8.5K Ft- Ib(ART =.6hrs AST= 1.4hrs). 12:00 18:00 6.00 DRILL_ ROT_ AF Dir drill and survey F15160' to 5360'(ART= 1.7hrs AST= 2.4hrs). Up 150K Dn 105K Rot 125K 39OGPM 1350psi 7ORPM 7.5 -9.0K Ft-lb 18:00 06:00 12.00 DRILL_ ROT_ AF PJSM; Dir. drill and survey F/5360' to 5539'(ART =2.0 AST =6.2) Up wt. =155K Dn. wt. =108K Rt wt. =125K Tq. =8 -10K 396 GPM 1400 psi Report Date: 4/22/2008 Job Category: DRILLING 24 Hr Summary Drill F/5539' to 5718'. Circ. clean.POOH Wipe hole f/5718'- 5025', RIH, Drill f/5718'- 6158' Max gas= 87 units Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 1 06:00 12:00 6.00 DRILL_ ROT_ AF PJSM;Dir drill and survey F/5539' to 5655' (ART= 1.1hrs AST= 3.3hrs). Very I difficult sliding. Increased lubricant from 1.5% to 2.0 %. Increased pumps F/396GPM to 415GPM P /U155K, S/0108K, ROT 130K 70RPM TQ 6 -10K Ft-lb 415GPM 1600psi. 12:00 17:30 5.50 DRILL_ ROT_ AF PJSM;Dir drill and survey F/5655' to 5718'(ART= 1.0hrs AST= 2.Ohrs). Very difficult sliding. 415GPM 1500psi P/U 160K 8/0 110K ROT 135K RPM 70 TQ 3 -6K Ft-lb. 17:30 18:30 1.00 CIRC_ MUD_ AF PJSM;Circ. clean 415GPM 1500psi No gains No losses, Monitor well 1 18:30 20:30 2.00 TRIP DP AF PJSM;POOH wipe hole f75718' -5025' Proper hole fill, No gains No losses 20:30 21:00 0.50 CIRC_ MUD AF PJSM; Circ. fill pipe, Wash f/5655' -5718' No fill, no gains , no losses 21,00 06:00 9.00 DRILL_ ROT_ AF PJSM; Dir. drill and survey F/5718'- 6158'Up wt. =165K Dn wt. =115K Rt wt. =133K Tq.= 10 -12K No gains No losses Max. gas 87 units. ART =5.9 AST =.6 Report Date: 4723/2008 Job Category: DRILLING 24 Hr Summary Drill F/6168' to 6269'. Circ. and work pipe. Drill F/6269' to 6348'. Circ. and condition hole and mud. Repair pump#2. Drill F/6348' to 6488'.C/U samlpes f /logger, POOH back ream thru tight hole (/6223'- 5529'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 DRILL_ ROT AF Dir drill and survey F/6158'to 6269' increase flowrate to 425GPM(ART= 1.9hrs) 09:00 09:30 0.50 CIRC_ MUD_ AF Circ. and B/R stand due to high torque. Increase lubricant concentration to 3 %. 09.30 12:00 2.50 DRILL_ ROT_ AF Dir drill and survey F/6269' to 6348' with hight torque sometimes stalling the top drive 7ORPM 10 -18K Ft-lb. Varying parameters to improve drilling(ART= 1.8hrs). 12:00 13:30 1.50 CIRC_ MUD_ AF Circ. and work last stand drilled due to high torque. Run centrafuge to lower solids and MW. Only one centrafuge of two working. 13:30 16:00 2.50 REPAIR RIG_ TA MSFL Cont. to circ. and 0/0 3 swabs and 3 liners on pump#2. Run centrafuge to reduce solids and MW. Only one of two centrafuge working. 16:00 21:00 5.00 DRILL_ ROT_ AF Dir drill and survey F/6348' to 6488' increase flowrate to 535GPM 2150psi UP 190K DN 130K ROT 145K 6ORPM TO 10K Ft-lb to 15K Ft-lb .Max gas 274 units(ART= 1.9hrs AST= .4hrs) 21:00 21:30 0.50 CIRC_ MUD_ AF PJSM; Circ. samples f/ mud logger, monitor well, static. www.peloton.com Report Printed: 9/18i2008 1 Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 21:30 22:30 1.00 TRIP_ DP_ TA MDOT PJSM: POOH working through tight spots w /50K over string wt. had to break pipe free after each connection 6448' to 6223'. 22:30 00:30 2.00 TRIP_ DP_ TA MOOT Worked tight area from 6223' to 6200'. Pulling 50K over and attempting to B/R w /400- 550GPM. Rotary stalling out w/16.5K Ft-lb. 00:30 04:00 3.50 TRIP_ DP_ TA MDOT Cont. POOH wash and backream f/6223' to 5529'. Pulling 50K over and top drive stalling w /16.5K ft -Ib. 04.00 06:00 2.00 TRIP_ DP_ TA MDOT Cont. POOH to 4000'. Hole in good condition from 5529'. Oriented to pull through window. Daily Operations Report Date: 4/24/2008 Job Category: DRILLING 24 Hr Summary POOH w/5 "" DP. 13/0 bit and LID motor. P/U new motor & bit. RIH. Drill f/ 6488'- 6537'. Circ & condition mud. POOH to 9 -5/8"" window. Dump mud. Clean pits. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP_ DP_ TA MOOT Cont. POOH w /5 "" DP. 08:30 10:30 2.00 TRIP_ BHA_ TA MDOT PJSM. POOH w/5 "" HWDP and BHA. Found some junk damage on outer case of MWD tool. No other damage found. Bit gauge and in good condition. Mud motor not holding full column of mud. B/0 bit and LID motor. 10:30 11:00 0.50 TRIP BHA TA MOOT PJSM. M/U rerun bit and new motor. Scribe motor and MWD. 11:00 12:30 1.50 SERVIC RIG_ AF PJSM: Service rig. Grease top drive and check drive shafts on carrier motors. Make modification to brake linkage due to near miss incident. 12:30 14:30 2.00 TRIP_ BHA_ TA MDOT PJSM. RIH w /BHA. Surface test MWD. Cont. RIH w /5 "" HWDP. Orient toolface thru csg window. 14:30 17:30 3.00 TRIP DP TA MDOT Cont. RIH w /5 "" DP to 6416'. Wash last 1 1/2 stands down to 6488'. 17:30 19:00 1.50 DRILL ROT_ AF Dir drill and survey F/6488' to 6537'. Excessive torque 13K- 16.5kft -Ibs. Top drive stalling out while rotating. P/U 200K, 3/0 115K, Rot wt 145K. Pulled 50K over @ connection. No go. Slack off to 115K, then work up to 250K+ to break free. Trip gas 9 units. 19:00 22:30 3.50 CIRC_ MUD_ TA NDMD Condition mud. Decrease fluid loss f/ 10.5 to 9.2 cc/30 min. Increase lube concentration f13 -1 /4% to 4.1 %.. Simulated connection. Pulled 250K. No go. Slacked off to 115K, then p/u to 250K until free. Torque maxed out @ 16.5 K & pipe stalling out. 22:30 02:00 3.50 TRIP_ DP_ TA NDMD PJSM: POOH f/ 6537'4100'. Pulled 50K to 60KIbs overpull f/ 6537' - 5700'. Hole pulled slick f/5700'- 9 -5/8"" csg window. Displace DP to drill piex mud thinned with desco. 02:00 06:00 4.00 CLEAN_ TANK TA NDMD PJSM: Dump 250 bbls mud to Hansen tank. Haul off mud from pits with vac trucks. Clean pits. Report Date: 4/25/2008 Job Category: DRILLING 24 Hr Summary Empty and clean mud pits. Mix mud. Service mud pumps & top drive. Clean and inspect rig. RIH. Displace fluid system. POOH to build mud volume. Ops Trouble Start Tirne End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 CLEAN_ TANK TA NDMD PJSM. Cont. cleaning pits and overhead lines. Flush and pump through rig pumps(1,2,and3), 2"" cement line, floor bleeders, kill line, choke line and manifold, poor boy degasser and top drive. Empty and clean trip tank. Monitor well 1/2 BPH static losses. 12:00 02:00 14.00 MIX MUD_ TA NDMD PJSM. Mix Flo pro Mud. All while perform maintenance on mud pumps. C/0 temperature control on top cooling tower fan for mud pump #2. Prep manriders for certification. Screen up both shakers to 200 mesh screens. Clean and organize rig. Inspect derrick. Warm drilling fluid with steam hose. Service top drive. Calibrate LEL monitor in cellar. Monitor well 1/2 BPH static losses. 02:00 03:30 1.50 TRIP_ DP_ TA NDMD PJSM: RIH f/ 4014'- 6475'. Hole slick. 03:30 04:30 1.00 CIRC_ MUD_ TA NDMD PJSM: Begin displacing drill string w/ wash down on last stand U6476-6607' @ 88 gpm & 30 rpm's. P/U 185K, 3/0 110K & Rot wt 145K. Hole torqing up & attempting to stall rotary @ 650T. Begin displacing annulus @ 380 gpm & 80 rpm's. Hole torqing up & attempting to pack -off. Start losina partial returns. Reduce flow to 267 gpm. Still losing partial returns. Estimated 150 bbls total lost to formation. 04:30 06:00 1.50 TRIP_ DP_ TA NDMD POOH w/ 5 "" drill pipe f/ 6507'4680' to build fluid volume. Hole slick. www.peloton.com Report Printed: 9/18/2008 . • • M Marathon Operations Summary Report MARA THON Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 4/26/2008 Job Category: DRILLING 24 Hr Summary POOH to 9 5/8 "" window. Mix mud. Displace 9 518 "" CSG. RIH to 6287'. Circ. and wash F/6287' to 6537'. Drill F/6537' to 7200'. Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 TRIP_ DP_ TA NDMD Cont. POOH to 9 518 "" window @ 4000'. Minimal losses as POOH. 06:30 11:30 5.00 MIX_ MUD_ TA NDMD Increase active mud volume in pits. Increase LCM concentrations of CaCo2, G -seal, and mix two in active. Build 50bbI LCM pill w/75PPB CaCo2(Fine, Med, Coarse), 1 SX Asphasol, 10SX G -seal, 7SX Mix 2 fine, 7SX Mix2 med. 11:30 12:30 1.00 MIX_ MUD_ TA NDMD PJSM. Finish build 5OBBL LCM pill. 12:30 13:30 1.00 CIRC_ MUD_ TA NDMD Displace CSG w19.3PPG Flopro. Lost lObbls during displacement. 238GPM 570psi. Orient to go thru window. 13:30 '15:00 1.50 TRIP DP TA NDMD RIH to 6287'. 15:00 16:00 1.00 CIRC_ _ MUD_ TA NDMD Circ. and wash F/6287'to 6350'. Dump 40bbls drillplex contaminated mud, Stage pumps up 264gpm 400psi. 16:00 17:30 1.50 CIRC_ MUD_ TA NDMD Cont. to circ. and wash F/6350' to 6537' stage pumps up to 385gpm 1000psi P/U 175K 9/0 135K ROT 152K 60 RPM TQ 6165 -8750K Ft -lb. 17:30 00:00 6.50 DRILL_ ROT_ AF PJSM: Drill 8 -1/2 "" hole f/ 6537' -6853' @ 425 gpm, 1250 psi, 3 -7 kib wob, 60 rpm, 8 -10 kft -Ibs tq, p/u 190 klbs, s/o 135 klbs, rot wt 158 klbs, ART: 4.9 hrs, AST 0 hrs. Max gas = 108 units, avg bkgnd gas = 20 units, no conn gas. No gains or losses. 00.00 06:00 6.00 DRILL_ ROT_ AF PJSM: Drill 8 -1/2 "" hole f/ 61363'-7200'@ 425 gpm, 1400 psi, 2 -10 klb wob, 60 rpm, 8 -11.5 kft -Ibs tq, p/u 185 klbs, s/o 162 klbs, rot wt 138 klbs, ART: 3.9 hrs, AST 0 hrs. Max gas = 257 units, avg bkgnd gas = 25 units, no conn gas. No gains or losses. Report Date: 4.27/2008 Job Category: DRILLING 24 Hr Summary Drill & survey f/ 7200' to 7926'. CBU. Repair swivel packing. POOH to 9 -5/8 csg window. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 DRILL_ ROT_ AF Dir drill and survey F/7200' to 7535'(ART= 4.2hrs AST =O) 425GPM 7ORPM TQ 11 -12K Ft -lb 1550psi P/U 190K S/0 140K ROT 168K 12:00 18:00 6.00 DRILL_ ROT_ AF PJSM: Dir drill and survey F/7535'to 7817'(ART= 4.0hrs AST =O) 425GPM 7ORPM TQ 11 -12K Ft-lb 1550psi P/U 190K S/0 140K ROT 168K 18:00 20:30 2.50 DRILL_ ROT_ AF Drill 8 -1/2 "" hale f/ 781T-7926:@ 425 gpm, 1600 psi, 5 -7 klb wob, 60 rpm, 8 -11 kft-tbs tq, p/u 200 klbs, s/o 150 klbs, rot wt 175 klbs, ART: 1.5 hrs, AST 0 hrs. Max gas = 491 units, avg bkgnd gas = 45 units, avg conn gas = 150 units. Increase mud wt f/ 9.5 to 10.0 ppg. No gains or losses. 20:30 23:15 2.75 CIRC_ MUD_ AF Circ bottoms up gas. Max gas = 1500 units. Increase mud wt f/ 10.0 to 10.2 ppg. Simulate connection. Swivel packing begin leaking. 23:15 23:45 0.50 REPAIR RIG TA MSTD PJSM: Pull out & rack back 1 std. 0/0 wash pipe on top drive. 23:45 01:00 1.25 CIRC_ MUD_ AF Circ bottoms up gas. Max gas = 42 units. Bkgnd gas = 13 units. Monitor well (static) Max F(:fllfl RPPr 01:00 06:00 5.00 TRIP_ DP_ AF PJSM: POOH to 9 -5/8 csg window. Backream f/ 75957535'. Work tight spot @ 7222' (pull 60K over). Backream 7074' -6291. Pump dry job @ 6291' & con't POOH f/ 6291'4600'. Current depth @ 06:00 hrs = 4600'. Report Date: 4/28/2008 Job Category: DRILLING 24 Hr Summary POOH to window. Service rig. RIH to 7926'. Circ. clean. POOH to 6159'. RIH to 7926'. Circ. clean. POOH. UD BHA. P/U & RIH w/ Shuttle assy. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP DP_ AF Cony POOH above window in 9 518 "" CSG. 07:00 07:30 0.50 SERV_ IC RIG_ AF PService rig. 07:30 09:30 2.00 TRIP_ DP_ AF Orient tools to run through window. RIH w /5 "" DP. 09:30 10:00 0.50 TRIP DP_ AF M/U 5' pup joint and wash last stand down to 7926'(3' fill). 10:00 12:00 2.00 CIRC_ _ MUD_ AF Circ. clean(CBUX3) 425gpm 1450psi 7ORPM. Trip gas 1014units. 12:00 14:30 2.50 TRIP_ DP_ AF PJSM: POOH. Differential sticking at 7855'. Pulled 60K over and had to P/U single to work pipe free going down. Started pulling pipe free wi30K-50K over at connections at 7404'. Tight spot at 7135' pulled 30K over. Cont. to POOH to 6159' differential sticking less as POOH. 14:30 16:00 1.50 TRIP_ DP_ AF RIH w/5 "" DP and wash last stand down to 7926'. www.peloton.com Report Printed: 9/18/2008 • 1 Marathon Operations Summary Report rt ` Oil Company Well Name: KENAI BELUGA UNIT 42 - 7 ���;. :r. n4 Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 16:00 17:30 1.50 CIRC_ MUD_ AF Circ. clean(CBUX2). Add lubtex to bring up concentration 2.5% to 4.0 %. String in CaCo2 and G -seal while circulating. 420GPM 1400psi 6ORPM TQ6 -10K 11-lb Trip gas 81 units. 17:30 22:30 5.00 TRIP_ DP_ AF PJSM: Flowcheck. Pump dry job. Drop 2 7/8 "" rabbit. POOH (SLM) w/ 5" drill pipe to 795'. Differential sticking much reduced pulling 20K over at connections. Hole in good condition. No gains or losses. Hole took proper fill up. No correction. 22:30 00:30 2.00 PULD_ BHA_ AF PJSM: Rack back 10 stds HWDP. LID jars, pony collar, string stabilizer, mud motor & bit. 00:30 06:00 5.50 LOG_ OH_ AF PJSM w/ Weatherford: P/U & M/U " "S "" quad -combo logging tools on shuttle assembly. RIH to 4160'. Perform pressure checks @ 241' & 4040'. Daily Operations Report Date: 4/29/2008 Job Category: DRILLING 24 Hr Summary RIH. Circ. out. Spot lubtex spiked mud. Drop dart and deploy logging tools. POOH w /DP logging. Lay down logging tools. Slip & cut drilling line. Service rig. RIH wf muleshoe assy to 9- 518 "" csg window. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP_ DP_ AF Cont. RIH wNVeatherford shuttle tools on 5 "" DP. 08:30 10:30 2.00 CIRC_ MUD_ AF Circ. last stand down. P/U single and cont. to wash to 7926'. Circ. out 250GPM 1200psi. Max gas 51 units. 10:30 11:00 0.50 CIRC_ MUD_ AF P/U to 7910 and LJD single joint of DP. Pulled 60K over at connection at 7910' and could not pull free. P/U single and M/U. Work pipe free. Wash down and circ. at 7926'. 11:00 11:30 0.50 CIRC_ MUD_ AF P/U to 7853' and rack back stand. Pulled pipe up at 7853' with 45K over. Pipe is differentially sticking more after circulation than before. 11:30 12:00 0.50 CIRC_ MUD_ AF Circ. and spot 4bbls lubtex in 260bbIs mud in DP and annulus. 12:00 13:00 1.00 CIRC_ MUD_ AF P/U to 7812'. Pulling 20 -30K aver. Drop messenger dart and pump down. Rotate w/20RPM while pumping. Good indication of deployment. 13:00 18:30 5.50 LOG_ OH_ AF PJSM: POOH w/ 5 "" drill pipe while logging w/ Weatherford Shuttle Quad Combo f/ 7911'- 7296', Pump dry job @ 7296'. Cont. logging out of hole f/ 7296'- 2864'. POOH w /5 "" drill pipe. 18:30 19:30 1.00 LOG_ OH_ AF PJSM: Stand back 5 "" HWDP & clear rig floor. 19:30 21:30 2.00 LOG_ OH_ AF PJSM: Retrieve logging tools & lay down shuttle assembly. 21:30 00:00 2.50 LOG_ OH_ TA MDLG Download & process logging data. Could not dump data from probe to computer. Required extensive technical assistance. PJSM: Perform rig maintenance w/ troubleshooting logging problems. Lubricate carrier, top drive, spinners, block & crown. Change oil on #2 carrier engine. Grease drive lines. 00:00 02:30 2.50 SLPCUT DLIN AF PJSM: Slip & cut 477' drilling line. 02:30 04:00 1.50 SERVIC RIG_ TA MDLG Repair rubber boot on joystick on drillers console. Repair trigger on crown -o- matic. Successfully aquired data f/ logging tool. 04:00 06:00 2.00 LOG_ OH_ AF PJSM: M/U muleshoe assv & RIH w/ 5 "" drill pipe to 9 -516 "" r..sq winrinw fnr RFT Iogs„Current depth is 4013'@ 06:00 hrs. Report Date: 4/30/2008 Job Category: DRILLING 24 Hr Summary Rig repair while wait on logging data. RIH F/4077' to 7880'. Fill hole due to lost circulation. POOH to shoe filling well. Spot LCM. Monitor well. Build mud volume & LCM pill. Spot LCM. Monitor well. Build mud volume & LCM pill. Ops Trouble Start Time End Time Dur(hra) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 LOG OH_ TA MDLG While wait on logging data repair Tesco Top drive RPM sensor. Install hammer union ends on new pop off line hose for for#3 pump. 09:30 12:00 2.50 TRIP_ DP_ TA MDLG PJSM. RIH F /4077' to 7733'. Take overpull wts every 500'. 12:00 13:00 1.00 TRIP DP TA MDLG PJSM. RIH w /5 "" DP and muleshoe to 7880'rabbit last 3 stands. 13:00 16:00 3.00 CIRC_ MUD_ TA NDLC Notice fluid level in well not at surface. Fill annulus w155bbls.Spot 50bbl LCM pill in annulus 75PPB CaCo2(fine,med,coarse), 1 SX Asphasol, 10SX G -seal, 7SX Mix2 fine, 7SX Mix2 med. POOH filling annulus w /120BPH F/7880' to 6600'. Cont. POOH filling annulus w/265BPH 6600'to 4060'(window). Total losses 709BBLS. 16:00 17:30 1.50 MIX LCM_ TA NDLC Close annular and shut well in. Build LCM pill. www.peloton.com Report Printed: 9/18i2008 • 1 N M Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 17 :30 18:00 0.50 CIRC_ MUD_ TA NDLC Pump 58 bbls LCM pill W/1.25PPB Flovis, 3 PPB Polypac, 25725/25/25 PPB CaCo2 10720/407250, 10PPB G -seal, 1.2PPB Magma Fiber. Spot LCM pill to end of drill pipe w/70bbls mud 9.0ppg. Pump pressure increased F735psi to 185psi during spotting of pill. No returns to surface. Lost 129bbls..)fotal losses 829bb1s. 18:00 22:30 4.50 MIX_ MUD_ TA NDLC Fill backside w /10bbls water. Monitor well while filling with water down annulus. Static losses decreasing from 20 BPH f/ 18:00 -19:00 hrs, 16 BPH f/ 19:00 -20:00 hrs, 9.5 BPH f/ 20:00 -22:00 hrs. All while building surface mud volume & mixing 58 bbl LCM pill. Total losses 884 bbls. 22:30 23:30 1.00 PUMP_ LCM_ TA NDLC Pump 60 bbl LCM pill w/ (1.5 ppb Flo -vis), (3 ppb polypac), (25 ppb Ea. SafeCarb 10120/40/250), (3 ppb Ea. Mix II fine /med), (6 ppb Magma Fiber reg), (10 ppb G- Seal). Spot at bottom of drill pipe w/ 67 bbls 9.0 ppg mud. Pump pressure increased f/ 69 psi to 165 psi while spotting pill. Lost 30 bbls fluid during entire procedure. Total losses 914 bbls. 23:30 06:00 6.50 MIX_ MUD_ TA NDLC PJSM: Monitor well using trip tank. Static losses steady a 9.6 BPH. All while building surface mud volume & 60 bbl LCM pill. Lost 63 bbls fluid. Total losses 977 bbls a. 06:00 hrs. Daily Operations Report Date: 5/1/2008 Job Category: DRILLING 24 Hr Summary Monitor well. Well taking 10BPH. Mix LCM pill. Spot and squeeze LCM pill. Bleed off pressure and monitor well. Mix LCM pill. Spot & squeeze LCM pill. Pull 2 stds. Circ gas out. Build LCM pill. Increase mud wt. f/ 9.1 ppg to 9.4 ppg @ 06:00 hrs. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 MIX LCM_ TA NDLC While monitor well w /106PH losses on trip tank. Mix LCM pill 1.25ppb Flo vis 3ppb Poly pac, 20ppb SC2,10,20,40,250(total100ppb), 15ppb G -seal, 3.5ppb Mix2 med, 3.5ppb Mix2 fine, 7.2ppb Magma fiber Reg, 3ppb Magma fiber fine. 10:00 12:00 2.00 PUMP_ LCM_ TA NDLC PJSM. Pump 58bbls LCM pill down DP. Hole full after 6bbls pumped. Chase w /10bbls 9.1 ppg mud. Close in annular and squeeze away 45bbIs.10.4ppg LCM pill at 2BPM. Started to see an increase in DP and CSG pressure after 10bbls squeezed away. Max squeeze pressure 100psi on CSG 130psi on DP. Turn pumps off and after 10min CSG pressure dropped to 85psi and DP pressure dropped to 100psi. Turn pumps on and squeezed away 5 bbls more at 1 BPM max squeeze pressure on CSG 95psi and DP 1304. Turned pumps off. After 15min CSG pressure dropped to 85psi and DP pressure dropped to 80psi. Observed 9 5/8 "" X 13 3/8 "" annulus while squeezing LCM. No sign of communications 12'00 16:00 4.00 FLOW_ CHEK TA NDLC PJSM. Bleed off pressure and open annular. Monitor well. Flowed back 1 bbl in 3min then 1 bbl in 12 min. Flow decreasing. Well static for next 10min and then started taking fluid at 66PH. While monitor well mix LCM pill 1.25ppb Flo vis, 3ppb Poly pac, 22ppb KCL, 20ppb each S.C. 2,10,20,40,250(total 100ppb), 15ppb G -seal, 5ppb each MI seal Fine and Med(total 10ppb), 5ppb ech Magma Fiber Fine and reg(total 10ppb), 3ppb cellophane. 16:00 17:30 1.50 PUMP_ LCM_ TA NDLC PJSM. Pump 56bbls LCM pill down DP @ 2BPM. Close in annular and aueeze away 50bbls 10.4000 LCM Dill at 113PM, Started to see an increase in DP and CSG pressure after5bbls squeezed away. Max squeeze pressure 80psi on CSG 20psi on DP. Turn pumps off and after 15min CSG pressure dropped to 80psi and DP pressure dropped to 0 psi. 17:30 20:00 2.50 FLOW_ CHEK TA NDLC Bleed off pressure and open annular. Monitor well. Flowed back 1 bbl in 2 min, 1 bbl in 8min, 1 bbl in 6 min. 0.5 bbl in 30 min. Decreasing flow. Well started losing fluid @ 2.5 bph. 20:00 20:30 0.50 SERVIC RIG TA NDLC PJSM: Pull 2 stds f/ 4079' -3943. Inspect mud pumps #1 & #2, and flush clean. 20:30 23:00 2.50 CIRC_ MUD_ TA NDLC PJSM: Circulate gas out w/ 9.1 ppg mud @ 195 gpm. Bottoms up gas = 277 units. Max gas = 502 units. Can't circulate w/ monitor well. Gas dropped off to 28 units when pumps turned off. Well holding fluid. www.peloton.com Report Printed: 9/18/2008 • • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 23:00 03:00 4 00 MIX_ LCM_ TA NDLC PJSM: Build 56 bbl LCM pill w/ 45 bbls water, 1.25 ppb Flo -vis, 3 ppb Poly Pac, 22 ppb KCL, 15 ppb G -Seal, 5 ppb Cellophane, 3 ppb reg. MagmaFiber, 20 ppb each ppb SC 2/10/20/40,250, 7.5 ppb each MI -Seal fine /medium, 3.5 ppb each Mix 11 fine /medium, 3 ppb each Nut Plug med /coarse. All while circ & monitoring well. Dynamic losses 2 bph. 03:00 06:00 3.00 MIX_ MUD_ TA NDLC PJSM: Increase mud wt. f/ 9.1 ppg to 9.4 ppg @ 06:00 hrs while monitor well. Hole static @ 06:00 hrs. Removed top screens on shakers so not to strip out LCM material. Daily Operations Report Date: 5/2/2008 Job Category: DRILLING 24 Hr Summary Circ. and increase MW. Started to have losses. RIH to 4069'. Spot LCM pill. POOH to 3943'. Squeeze away 50bbls. Monitor well and build LCM pill. Build mud volume. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 CIRC_ MUD_ TA NDLC Circ. and increase MW 9.4ppg to 9.5ppg @ 3943' w/ 300GPM 212psi. Started to have losses w/3000PM and turned pumps down to 150GPM 106psi. Staged pumps up to 250GPM 179psi. MW 9.5ppg at 07:45. Cont. to increase MW to a 9.6ppg. 09:30 13:00 3.50 CIRC_ MUD_ TA NDLC Circ. w/245GPM 176psi and increase MW to 9.6PPG with LCM material. 13:00 13:30 0.50 CIRC_ MUD_ TA NDLC Increased pumps to 300GPM and well started taking losses. Turned pumps down but well continued to take losses. Loses 92BPH. 13:30 14:00 0.50 FLOW_ CHEK TA NDLC Shut off pumps. Monitor well. Static losses 20BPH. 14:00 14:30 0.50 TRIP_ DP TA NDLC RIH to 4069'. 14:30 16:00 1.50 PUMP_ LCM_ TA NDLC Monitor well 12BPH static losses. Pump 58bbl LCM pill 1.25ppb Flo Vis, 3ppb Poly pac, 20ppb 2,10,20,40,250(100ppb total), 15ppb G -seal, 7.5ppb each MI seal fine and med(15ppb total), 3.5ppb each Mix 2 fine and med, 5ppb cellophone, 3ppb mut plug med and course(6ppb total), 3ppb Magma fiber reg, 7ppb Magma fiber fine. Lost 20BPH while pump pill. Displace w /50bbls 9.7ppg mud. Lost 2bbls while displacing. 16:00 16:30 0.50 TRIP DP TA NDLC POOH to 3943'. 16:30 19:00 2.50 SQUEZE OTHR TA NDLC Observe well. 2.25BPH losses. Close bag and squeeze away 50bbls. max rate 1.5BPM, max squeeze pressure 105psi. Turn pumps off and observe CSG pressure drop to 70psi after 15min. 19:00 21:00 2.00 FLOW_ CHEK TA NDLC PJSM: Monitor well with trip tank. Static losses 0.25 bph. 21:00 04:30 7.50 MIX LCM_ TA NDLC PJSM: Build 56 bbl LCM pill w/ 45 bbls water, 2.5 ppb Flo -vis, 3 ppb Poly Pac, 22 ppb KCL, 15 ppb G -Seal, 10 ppb reg. MagmaFiber, 20 ppb each SC 2/10/20/40/250, 7 ppb each MI -Seal fine /medium, 7.5 ppb each Mix II fine /medium, 7 ppb medium Nut Plug, 8 ppb coarse Nut Plug. All while monitoring well. Static losses steady 0.5 bph. 04:30 06:00 1.50 MIX _ MUD_ TA NDLC Top off pits, mix 50 bbls 9.7 ppg Flo -vis mud. Report Date: 5/3/2008 Job Category: DRILLING 24 Hr Summary Mix mud. Circ. @ 3943'. RIH to 5400'. Circ. out gas at 5400'. RIH to 6416'. Circ. out gas at 6416'. RIH f/ 6416'- 7170'. Circ gas out. RIH f/ 7170'- 7852'. Circ gas out. Wash to bottom & tag up. Circ gas out. Make 10 std short trip. RIH. Circ. Ops Trouble Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 MIX MUD_ TA NDLC Top off pits, mix 50 bbls 9.7 ppg Flo -vis mud. 06:30 08:00 1.50 CIRC_ MUD_ TA NDLC PJSM. Circ. B/U @ 3943' 200GPM 1371 psi 368units max gas. 08:00 09:00 1.00 TRIP DP_ TA NDLC PJSM. RIH to 5400'. 09:00 13:30 4.50 CIRC_ _ MUD_ TA NDLC PJSM. Circ. out at 5400' 144GPM at 245psi. Max gas 600units. Appeared to have a 15bb1 pit pain and max pas. Shut in with annular at 10:38hrs. No DP or CSG pressure observed. Circ. thru open choke w /100gpm. Cont. to circ. untill gas droped below 100 unit(CBUX2). Open annular and check for flow. No flow. Had to work pipe free with torque and downward movement. Stage pumps up to 168gpm 178 psi 22RPM and CBU. No increase in gas at B /U. Shut down pumps and check for flow. No flow. 13:30 14:00 0.50 TRIP_ DP_ TA 'NDLC RIH to 6416'. 1 bbl lost while RIH. 14:00 17:00 3.00 CIRC_ MUD_ TA NDLC PJSM: Circ. w /170GPM 271 psi 22RPM max gas 738 units. CBU X 2 to get gas down to 34 units. Check flow. No flow. 17:00 18:00 1.00 TRIP DP TA NDLC PJSM: RIH f/ 6416- 7170'. No losses. www.peloton.corn Report Printed: 9/18/2008 • • Marathon Operations Summary Report i „ Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:00 21:00 3.00 CIRC_ MUD_ TA NDLC PJSM: Circ gas out wl 168 gpm, 300 psi, 20 rpm, 10Kft-lb tq. Max gas = 661 units. Circ. until gas drops off to 50 units & holding. Monitor well (static). 21:00 22:00 1.00 TRIP_ DP_ TA NDLC PJSM: RIH f/ 7170'- 7852' slowly w/ monitoring returns from trip tank. Proper displacement. No gains or lasses. 22:00 01:00 3.00 CIRC_ MUD_ TA NDLC PJSM: Circ gas out off bottom w/ 168 gpm, 315 psi, 20 rpm, 10Kft-lb tq. Max gas = 2385 units. Circ. until gas drops off to 90 units & holding. Monitor well (static). 01:00 04:00 3.00 CIRC_ MUD_ TA NDLC P/U single & last stand. Wash to bottom @ 168 gpm & no rotation. Tag bottom @ 7926'. No fill. P/U 15' off bottom, turn pipe @ 20 rpm's & cont circ bottoms up gas out . Max gas = 2115 units. Circ. until gas drops off to 54 units & holding. Monitor well. Static losses 0.5 bph. 04:00 04:45 0.75 TRIP_ DP_ TA NDLC PJSM: Make 10 std dummy trip slowly f17911 7280' w/ monitoring from trip tank. Proper hole fill. No gains or losses. LID single. 04:45 05:30 0.75 TRIP_ DP_ TA NDLC PJSM: RIH slowly f/ 7280'- 7914' w/ monitoring returns from trip tank. Hole U- tubing fluid up dill pipe side. Proper displacement. No gains or losses. 05:30 06:00 0.50 CIRC MUD TA NDLC Circ short trip gas out. Circ @ 168 gpm. Currently pumped 3000 of 8200 strokes required for bottoms up @ 06:00 hrs. Daily Operations Report Date: 5/4/2008 Job Category: DRILLING 24 Hr Summary P/U 8.5 "" bit and BHA. RIH w /5 "" DP. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 04:00 04:30 0.50 TRIP_ BHA_ AF P/U 8.5 "" bit and bit sub. RIH w/HWDP and jars. 04:30 06:00 1.50 TRIP_ DP AF RIH w/5 "" DP. Report Date: 5/4,2008 Job Category: DRILLING 24 Hr Summary Circ. out gas at 7913'. Circ. and increase MW to 10.1 ppg. Wiper trip to 7280. RIH to 7920'. CBU. POOH.PulI Wear ring, install test plug, Test BOPE,Install W /R, P/U bit RIH Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 CIRC_ MUD_ TA NDLC PJS; Circ. out gas @ 7913' 166GPM 254psi 2ORPM. Max gas 2126 units. 07:30 11:00 3.50 CIRC_ MUD_ TA NDLC Circ. and increase MW 9.9ppg to 10.1 ppg w /166GPM 260psi 2ORPM. 11:00 12:00 1.00 TRIP DP TA NDLC Flow check. POOH 10 stands to 7280'. 12:00 13:00 1.00 TRIP DP_ TA NDLC PJSM;RIH to 7920'. 13:00 15:30 2.50 CIRC_ _ MUD_ TA NDLC CBU w /168gpm 27Opsi 2ORPM. Max gas 30units. 15:30 19:30 4.00 TRIP_ DP_ TA NDLC Check flow. Pump dry job. POOH.SLM No correction 19:30 20:30 1.00 PULD BHA TA NDLC PJSM; Handle BHA, Stand back HWDP,LID mule shoe. 20:30 21:00 0.50 RUNPUL WBSH TA NDLC PJSM; Clear floor and Mill Running tool pull wear bushing. 21:00 03:30 6.50 TEST ROPE AF PJSM;Install test pluq.Test BOP test annular to 250 psi low 3500 psi high.Test all other test 250 psi low 5000 psi high 10 min.Perform Accu. drawdown,gas alarms, all test good. Test witnessed by JeffJones AOGCC, BLM,Left message with Tim Lawlor 5/3/08 1000 hrs. 03:30 04:00 0.50 RUNPUL WBSH AF Install wear bushing. Start completion operations @ 04:00hrs 05/04/2008. Report Date: 5/5,2008 Job Category: DRILLING 24 Hr Summary' RIH w/8.5 "" bit to 7926'. CBU. Wiper trip to 7300'. RIH to 7926. Circ. hole clean,no Iosses,POOH losing 1.5 bbls. hr. while POOH. Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 15:00 9.00 TRIP_ DP_ AF RIH w/6.5 "" bit to 7926'. Washed and rotated through bridge @ 7803'. 10' fill on bottom 15:00 17:00 2.00 CIRC_ MUD_ AF CBU 166GPM 417psi 37RPM. Max gas 483 units. 17:00 18:30 1.60 TRIP_ DP_ AF PJSM; Wiper trip to 7300'. Wiped tight spot @ 7803'. RIH to 7926'. No tight spots. 18:30 20:30 2.00 CIRC_ MUD_ AF Circ. hole clean @ 7926'Max. gas 39 units, no gains no losses, Monitor well, static no Iosses.Up wt.= 200K Dn wt. =150K Rt wt. =175k Tq. =6 -9K MW =10.1# Pump 85 stks. =275 psi. 20:30 00:00 3.50 TRIP_ DP_ AF PJSM; POOH slowly monitor well to trip tank & EPOCH, pits.Well losing 1 1/2 bbls. hr. while tripping pipe.Monitorwell before laying down pipe,no osses. t shoe. 00:00 05:00 5.00 TRIP_ DP_ AF PJSM; POOH laying down 5 "" drill pipe and BHA www.peloton.com Report Printed: 9/18/2008 / �1, Marathon Operations Summary Report lr� Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 05:00 06:00 1.00 TRIP BHA AF Lay down monels from derrick. Daily Operations Report Date: 5/6/2008 Job Category: DRILLING 24 Hr Summary RIH w /5 "" DP to 4023'. Spot LCM pill. POOH UD DP.Pull wear ring. R/U to run 3 112 Excape, PJSM, Run Excape. Ops Trouble l Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 TRIP_ DP_ AF RIH w15 " "DP from derrick 45 stands to 2835'. Losses 1.5BPH. 07:30 08:30 1.00 TRIP_ DP_ AF Monitor well. Static losses 1 BPH. 08:30 10:00 1.50 TRIP DP AF Cont. RIH w15 " "DP to 4023'. Losses 1.68PH losses. 10:00 10:30 0.50 FLOW OHEK AF Monitor well. static losses 1BPH. 10:30 11:30 1.00 PUMP_ LCM_ AF Pump 65bb1 LCM pill W120ppb ea SC 2,10,20,40,250(total 100ppb), 15ppb G -seal, 7ppb ea MI seal fine and med(14ppb total), 7.5ppb Mix 2 fine and med(totall5ppb),7ppb nut plug med, 8ppb nutplug course, 10ppb Magma fiber reg. No losses while pump pill. 11:30 16:30 5.00 TRIP DP_ AF PJSM. POOH LID DP. 16.30 17:00 0.50 FLOW_ CHEK AF Monitor well for losses, losing 3/4- BPH 17:00 18:30 1.50 TRIP_ DP_ AF PJSM; RIH with 5 "" drilll pipe,26 stds. 18:30 20:30 2.00 TRIP_ DP_ AF PJSM; POOH w/ 52 jts. drill pipe and laydown. 20:30 21:00 0.50 RUNPUL WBSH AF Pull wear bushing to run Excape completion. 21:00 00:00 3.00 RURD_ CSG_ AF PJSM; Change out bails and elevators, to run 3 1/2 excape completion, prep rig floor, and rig up Weatherford csg. tongs. 00:00 01:00 1.00 SAFETY MTG_ AF Hold safety meeting and JSA for running 3 1/2 Excape completion. 01:00 01:30 0.50 RURD_ CSG_ AF Rig up control lines and sheave with crane. 01:30 06:00 4.50 RUN_ CSG_ AF RIH with 3 112 "" Excape completion with modules. 20 jts. 3 1/2 and 9 modules. Report Date: 5/7/2008 Job Category: DRILLING 24 Hr Summary Run 3 112 "" Excape completion.break circ. at shoe,RIH to 7905', Break circ , RID Expro, Pipe stuck @7905', work pipe and circ.R /U Wireline ,Check depth an modules. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 RUN_ CSG_ AF Cont. Run 3 112 "" CSG Excape completion total 17 modules to 2278'. Check flow. Well static. 10:00 10:30 0.50 CIRC_ MUD AF Circ. w/78GPM 100psi full CSG volume(18bbls). 10:30 11:30 1.00 RUN CSG_ AF Cont. run 3 112 "" 9.3 PPF L -80 Butt -mod CSG w13 control lines and 1 sacrificial line to 2465'. I 11:30 16:00 4.50 RUN CSG_ AF PJSM. Cont. Run 3 112 "" CSG w/3 control lines and 1 sacrificial line to above window at 4027'.(Drnpped 10 "" X 3/8 rachet wrench in hnlf_) , 16:00 00:00 8.00 RUN_ CSG_ AF Break circulation above shoe 45gpm 100psi. Cont. RIH w/3 112 "" Excape cnmplatinn (777 jtn 3 1I7 " ") to 79115; Up wt =103K Dn wt. =BOK 00:00 00:30 0.50 CIRC_ MUD_ AF Rig up and circ. bringing pumps on slowly to handle LCM over shaker f/ 1 BPM and increase to 2 bbls. min. Terminate control lines and cable. Lower sheave with crane and rig down 3 112 CSG shoe (cz), 7901', 00:30 04:00 3.50 WORK_ PIPE AF Cont. to circ. and attempt to move pipe. Pull 135K pipe not movina.Slack off to 55K and work pipe. Add 1/2 % lubetex to try to free pipe. Monitor well for losses,112 BPH. Max. gas 58 units. 04:00 05:00 1.00 PULD_ LOG AF PJSM; Rig up EXPRO for correlating modules on depth. 05:00 06:00 1.00 LOG_ OTHR AF Run Gr -CCL correlation log for Excape modules. Report Date: 5/8/2008 Job Category: DRILLING 24 Hr Summary Run correlation log. Circ. 3 112 "" CSG. Cement CSG. WOC, Well taking 1 BPH. Prep to Nipple down BOP Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment L- 06:00 08:00 2.00 LOG_ CSG_ AF Run GR -CCL correlation for Excape. Slow circulate .BBPM. 08:00 08:30 0.50 LOG CSG_ AF RID Expro E/L. 08:30 09:30 1.00 CIRC_ MUD_ AF Circ. 3 112 - CSG .5BPM 200psi. 09:30 10:00 0.50 MIX MUD_ AF Mix Congor and SMB in pits for corrosion inhibitor. 10:00 11:00 1.00 SPOT_ PILL AF Spot 2% Congor and 1 PPB SMB in mud ahead of cement job. BJ Batch mix 200bbIs lead cement. 11:00 12:00 1.00 RURD_ CMT_ AF PJSM. R/U BJ cement head and cement line. Lower mud pit volume in preparation for cement job. • www.peloton.com Report Printed: 9118/2008 ! 1 M arathon Operations Summary Report M R�TA Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity' Code Status Code Comment 12:00 15:00 3.00 PUMP_ CMT AF Lined up BJ and pumped 5bbls water ahead. Tested lines to 3500psi. Bled pressure off of cement lines. Mix edand pumped 50bbls 10.3ppg Sealbond sweep. Pumped 349sxs Class " "G "" cement w /47 %LW -6, 15% BA -90, 1% CD -32 .5% SMS, 1% FL -52, .05% Static Free, 1 gphs FP -6L to yield 196bbls 10.5ppg slurry(lead slurry batch mixed). Tailed in with 689sxs Class " "G "" cement w/1.2% BA -56, .3% CD -32, .5% EC -1, .2% SMS, .05% Static free, and 1 gphs FP -6L to yeild 152bbls 15.8ppg slurry. Washed out cement lines to rig floor. Dropped plug and kicked out w /5bbls water. Cont. displaceing w/62.5bbls 6% KCL brine 2.5BPM. Bumped plug wC2700psi 1000psi over last displacement pressure at 1BPM. Released pressure and floats held. 15bbls mud lost during entire cement job. Good circulation during entire job. CIP@ 1500hrs. Attempted to reciprocate 3 112 "" CSG w/35K over while cementing and displacing. CSG remained stuck. 15:00 06:00 15.00 RURD_ CMT_ AF PJSM; RID cement head. Flush BOP stack.Monitor well for losses losing 1 21,EiHaul mud, clean pits.Pig down risers, drip pan, fill up bleeder, trip tank lines, kill lines, panic lines, prep to nipple down stack. Daily Operations Report Date: 5/9/2008 Job Category: DRILLING 24 Hr Summary( WOC.N /D stack, cut csg.,install pack -off, tubing tree, and test. R/D GD -1 @2030 hrs.Well losing 1 BPH. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 15:00 9.00 WAITON CMT AF While WOC clean mud pits and prep to N/D stack.(Well still losing 1 BPH) 15:00 20:30 5.50 NUND BOPE AF PJSM; PIU bop stack, Cut control lines, Set 3 1/2 casing slips With 80k.Cut 3 112 csg. Dress casing stub. Move bop stack out of cellar. Set pack off and test to 5000 #.Install tree, test void to 5,000 #.Test tree to 10,000 #.Pull two way check, install backpressure valve.(Well still losing 1 BPH) 20:30 00:00 3.50 RURD_ RIG_ AF PJSM; LJD bales, unwire MI van,move EPOCH shack, R/D pump #3, RID poorboy and U -tube, C/O valve seatsin pump#2,C /0 saver sub on top drive, shut down boiler. 00:00 06:00 6.00 RURD_ RIG_ AF PJSM;R /D Top drive f/ blocks inspect tugger lines, lay down top drive, and torque tube, blow down water lines, R/D derrick board. Pump out H2O tank. Report Date: 5/102008 Job Category: DRILLING 24 Hr Summary RDMO GD -1 Release rig @1800 hrs.To KBU14 -8 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 18:00 12.00 RURD_ RIG_ AF Continue riq down GD -1. Pull service lines, electrical mud and water lines. Prep mast and scope down. Move misc loads to kbu14 -8. PJSM crane down windwalls choke and dog houses. Move out #3 mud pump Mi -van Cuttings tank and Epoc unit. Crane down gray iron bop conex & stairwaysand load out. Lay mast down on carrier. Split pits and move to 14 -8. Drive carrier off mud boat. Move sub base off and telescope down. Release rig to well #KBU14 -8 @ 1800 hrs. Report Date: 5/142008 Job Category: COMPLETION 24 Hr Summary Rig Up Expro Wireline to CBL / GR Ops Trouble Start Time End Time Dur (ho) Ops Code Activity Code Status Code Comment 10:30 11:00 0.50 SAFETY MTG_ AF Hold PJSM while Vetco pulls back pressure valve in tree. Safety topics include job assignments, overhead crane, manlift operations, pinch points, warning signals - blue lights for gas release, red light for fire, sirens, 3 second rule, buddy system, muster point 11:00 11:45 0.75 'RURD_ ELEC AF rig up Expro Wireline to run CBL / GR. 11:45 15:00 3.25 LOG_ CSG_ AF RIH w/ CBL -GR. Tag bottom at 7794' MD. Cement top at 2806"" MD. Window in 9 5)8 "" at 4094. 1288 feet of cement above window. Pull out of hole. 15:00 15:30 1 0.50 RURD_ ELEC AF Rig down Expro Wireline 15:30 15:50 0.33 SECURE WELL AF Secure wellhead. Close all valves. Turn well over to facilities for construction activities www.peloton.com Report Printed: 9182008 • • A r yl) Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 5/28/2008 Job Category: COMPLETION 24 Hr Summary Rig up Expro Well Test, BJ Coil, BJ Frac Services, Expro Americas perforating, Steam on Wheels, Rain for Rent Tanks, United Rentals light plants, MOC flow back equipment for 5 -29 frac date. Heat frac fluid, mix KCL water for gel, pressure test CT BOP - passed, pressure test BJ hardlines to 9500 # - good, pressure test flowlines, Expro flow test equipment - test good. Expro - perforate module 1 at 2:20 pm. - pressure to detonate gun 3200# Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:00 16:00 8.00 RURD STIM AF Report Date: 5/29/2008 Job Category: COMPLETION 24 Hr Summary Safety Mtg., Frac Stim Mod 1 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:45 0.75 SAFETY MTG AF Combined safety meeting to cover simultaneous perforating, frac and flowback operations, Each section went over their operations , issues / concerns. production pad safety, emergencies etc 07:45 08:45 i 1.00 PUMP FRAC CS Mndule 1 sr.reenerl nut Called coil tubing to perform cleanout ,. 08:45 12:45 4.00 WAITON EQIP CS Wait on coil crew. Start rig up at 12:45pm 12:45 22:45 10.00 CLNOUT CSG CS Hit sand bridge at 6380 feet. Circulated sand out to 7800' MD. Pull tubing out of hole while circulating 22:45 23:15 0.50 RURD COIL CS Rig down CTU injector head. Secure wellhead forevening Report Date: 5/30/2008 Job Category: COMPLETION 24 Hr Summary CTU cleanout Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:00 08:45 0.75 SAFETY MTG AF 08:45 19:45 11.00 CLNOUT CSG AF 19:45 20:15 0.50 RURD COIL AF Report Date: 5/30/2008 Job Category: COMPLETION 24 Hr Summary Safety Mtg, Frac STim Mod 2 -17 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:30 0.50 SAFETY MTG AF safety meeting 07:30 07:45 0.25 PERF CSG AF perf mod 2 07:45 08:15 0.50 PUMP FRAC AF frac mod 2 08:15 08:30 0.25 PERF CSG AF perf mod 3 08:30 09:00 1 0.50 PUMP FRAC AF frac mod 3 1 09:00 09:15 0.25 PERF CSG AF perf mod 4 09:15 09:45 0.50 PUMP FRAC AF frac mod 4 09:45 10:00 0.25 PERF CSG AF perf mod 5 10:00 10:30 0.50 PUMP FRAC AF frac mod 5 10:30 10:45 0.25 PERF CSG AF perf mod 6 10:45 11:15 0.50 PUMP FRAC AF frac mod 6 11:15 11:30 0.25 PERF CSG AF perf mod 7 / 8 11:30 12:00 0.50 PUMP FRAC AF frac mod 7 / 8 12:00 12:15 0.25 PERF CSG AF perf mod 9 12:15 12:45 0.50 PUMP FRAC AF frac mod 9 12:45 13:00 0.25 PERF CSG AF perf mod 10 13:00 13:30 0.50 PUMP FRAC AF frac mod 10 13:30 '13:45 0.25 PERF CSG AF perf mod 11 13:45 14:15 0.50 PUMP FRAC AF frac mod 11 14:15 14:30 0.25 PERF CSG AF pert mod 12 14:30 15:00 0.50 PUMP FRAC AF frac mod 12 15:00 15:15 0.25 PERF CSG AF pert mod 13 15:15 15:45 0.50 PUMP FRAC AF frac mod 13 15:45 16:00 0.25 PERF CSG AF pert mod 14 /15 16:00 16:30 0.50 PUMP FRAC AF frac mod 14 16:30 16:45 0.25 PERF CSG AF perf mod 16 /17 16:45 17:15 0.50 PUMP FRAC AF frac mod 16 / 17 17:15 17:30 0.25 PERF CSG AF flapper removal tool 17:30 18:00 0.50 PUMP FRAC AF www.peloton.com Report Printed: 9/18/2008 • ; 'N Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 5/31/2008 Job Category: COMPLETION 24 Hr Summary CTU cleanout after frac stimulation Ops Trouble Start Time End Time Our(hrs) Ops Code Activity Code Status Code Comment 15:00 16:00 1.00 SAFETY MTG AF Obtain work permit, held PJSM 16:00 17:00 1.00 RURD COIL AF PU coil tubing injector. Take to we'll. Shell test low at 200 psig, high 1000 psig. good test. Open well. 17:00 18:00 1.00 WORK COIL RIH with coil, When coil at 490' Start pumping fluid at 0.5 BPM. Returns to flow back tank. 18:00 19:00 1.00 PUMP WTR PIP= 586 psig, WHP 85 on back side. Pump rate @ 0.6 BPM CT@ 3000' 19:00 19:30 0.50 PUMP WTR Work coil down to 3000' CTM, pull test = 7000 lbs. Good returns to surface. 19:30 20:00 0.50 PUMP WTR Coil at 5275' CTM, increase PIR to 1.7 BPM. PIP= 3370 psig, WHP= 66 psig with good returns to surface. 20:00 20:15 0.25 PUMP WTR Work coil down to 5630' CTM, Good returns with small amounts of sand. RIH coil weight at 6000 lbs. 20:15 20:45 0.50 PUMP VTR Coil at 5750' CTM, pull test 10, 500 lbs. Returns good with sand. PIR = 1.70 BPM, WHP = 3600 psig, Coil back side pressure = 50 psig. 20:45 21:00 0.25 PUMP WTR Coil at 5800' , fluid returns slowed to flow back tank. PIP dropped to 1200 psig, Pull up hole, PIP = 2900 psig, back side pressure = 15 psig. PIR= 1.5 BPM. RIH with coil 21:00 21:15 0.25 PUMP WTR Good returns to flow back. Coil at 5980' CTM, lost returns. Pull up hole with coil to 5800'. PIP= 2900 psig, Back side pressure = 11 psig. PU weight = 21, 000 Ibs 21.15 21:21 0.10 PUMP WTR RIH with coil to 6825' CTM. PIP= 3000 psig, back side pressure = 20 psig. PUW = 16, 000 Ibs. Continue down hole at 20 FPM. Returns good. 21:21 21:51 0.50 PUMP WTR TS MDCT Tagged up at 7117' CTM, PU hole with coil to 7050' CTM. PIP= 3000 psig, WHP = 15 psig. PUW= 15,400 Ibs. PIR = 1.75 BPM. RIH with coil to 7117' lost returns. PUH with coil. 21:51 22:21 0.50 PUMP WTR TS MDCT Coil at 7085' CTM. Increased PIR to 1.90 BPM, PIP = 2700 psig, WHP = 0 psig, no returns to flow back tank. Fluid pump transmission over heated back down pump rate to cool down temperature. 22:21 22:51 0.50 PUMP WTR T5 MDCT PUH with coil, PU weight increaed to 25, 000 Ibs, up to 32, 000 Ibs. coil stuck, tried to RIH with coil. Coil would not move down or up. Brought N2 on line down coil. N2 at 350 SCFM. PIP = 4500 psig. No Movement from displacing fluid out of coil with Nitrogen. 22:51 00:21 1.50 PUMP N2 TS MDCT Backed off fluid and increased N2 down coil. Could not move coil. No returns to flow back tank. Coil at 7050' CTM. Shut down fluid and went to straight N2 Pumped down coil. Work coil pulling up 24, 000 Ibs and RIH trying to work coil down. Coil would not move. 00:21 01:21 1.00 PUMP N2 TS MDCT Made numerious attempts to pump down back side while picking up coil to 24 K, 30k & 32 K Slacking off and pressuring up on back side. Bled off back side and repeat sequence. 01:21 02:21 1.00 PUMP WTR TS MSCT Attempt to surge back side by pressuring up to 1000 psig opening up choke to flow back tank and releasing pressure to flow back tank. Back side water packed, indicating sand bridge with no communication with lower well bore below coil nozzle. 02:21 03:21 1.00 PUMP WTR TS MDCT Made several attempts to pressure up and dump pressure to flow back tank to try and change the sand bridge around the coul tubing where stuck. 03:21 06:21 3.00 WAITON ORDR TS MSCT Disscussion on going on plan forward. Held 24, 000 Ibs +8,000 lbs hanging weight on coil and monitor for changes on wells conditions. Total estimated fluid loss to formation 480 BBLS. Report Date: 6/1/2008 Job Category: COMPLETION 24 Hr Summary Stand by and monitor stuck coil tubing. Made several attempts to rattlefshake coil by pressuring up coil with fluid and closing back the pump discharge butterly valve. PIP= 3800 psig, PIR - 2.5 BPM. No real change in conditions around coil tubing. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:00 24.00 CLNOUT TBG TS MDCT Coil tubing stuck in well from sand Report Date: 62/2008 Job Category: COMPLETION 24 Hr Summary Pump Guar pill below stuck tubing www.peloton.com Report Printed: 9/18/2008 • • Marathon Operations Summary Report Nea a nmri Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment Daily Operations Report Date: 6/3/2008 Job Category: COMPLETION 24 Hr Summary Pump HEC pill below stuck tubing Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment l 06:00 06:00 24.00 PUMP LCM CS Attempt to free differentially stuck and sanded in CT Report Date: 6i6/2008 Job Category: COMPLETION 24 Hr Summary Out coil. Attempt to run Free - Point. Tool wont pass thru tubing. "Walk" injector up over cut. Install night cap and shut down for the night. Ops Trouble l Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:30 1.50 WAITON OTHR CS Monitoring coil tubing depth and pressures. Wait on daylight. 07:30 08:30 1.00 SAFETY MTG CS Hold PJSM. Discuss BJ Coil JSA. Disscuss muster area, alarms, and emergency response. Obtain Safe Work Permit. 08:30 09:30 1.00 RURD COIL CS Start equipment. RU coil unit. 09:30 10:18 0.80 PUMP WTR CS Pump 28 bbls of KCL water to insure coil is clear. Pull check coil to see if it will come free. 10:18 10:33 0.25 RURD COIL CS Install coil clamps at counter head. 10:33 12:33 2.00 CUT COIL CS RD Expro crane. Cut weep hole in coil. No pressure. OK. Cut coil tube. Straighten pipe by POOH. Install lense fitting. Reposition walking dogs and slack off with crane 12:33 13:03 0.50 SAFETY MTG CS Hold Expro PJSM. Discuss Expro JSA and specific job hazards. 13:03 13:33 0.50 RURD EQIP CS RD crane off injector. Set and lock slips on CT. 13:33 16:03 2.50 RURD ELEC CS RU Expro to run Free Point. Unable to get tools to pass thru tube. Tools will pass, but centralizers on Free Point tool will not allow passage. Decide to RD for the night. 16:03 16:33 0.50 SAFETY MTG CS Hold Pre rig down safety meeting. 16:33 18:03 1.50 RURD COIL CS Attemp to "walk" injector up and off pipe. While doing so, dogs catch on top _ of Ctubing and bend 12' stub. Remove injector. Attemp to staighten stub, in V order to install lubricator section on BOP' for the night. Stub broke off @ BOP's. Install night cap and secure well for the night. RD coil and N2 equipment. 18:03 18:33 0.50 SECURE WELL CS Secure well and location for the night. Turn in Permit and sign out. Leave loc. Report Date: 6/21/2008 Job Category: COMPLETION 24 Hr Summary Rig up on Coiled Tubing Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:00 08:30 0.50 SAFETY MTG AF PJSM - not a normal operation. Lets be careful, active gas prod. pad. red lights, blue lights, muster area. slips trips falls, raining, slippery iron etc 08:30 09:00 0.50 RURD COIL AF Rig up coil tubing unit to tie into tubing stub. 09:00 13:00 4.00 WAITON ORDR CS pressure on casing above sand plug -0 psi, pressure on tubing 1820 #. This --it. means that crossflow in wellbore has cut the coil and bypassed the two check valves. Call Houston to formulate plan. 13:00 14:00 1.00 RURD OTHR CS Rig up pump truck and vac truck to pump KCL water down tubing to kill well 14:00 14:15 0.25 SAFETY MTG CS PJSM to discuss pressure test, job, job safety. 14:15 14:30 0.25 TEST WLHD CS Pressure test pump in equipment up to wellhead to 4500 # - Test good 14:30 14:45 0.25 PUMP WTR CS Max pump rate 2.0 BPM, pressure 1900 #, volume of tubing 16 BBL. When fluid exited tubing and into wellbore pressure began to climb. Shut down when volume hit 25 BBL and pressure climbed to 2800 #. Pressure on tubing 0 psi, pressure on casing 0 psi at 14:45 pm 14:45 15:00 0.25 SECURE WELL AF Secure wellhead for evening. Operators to verify pressure on tubing every two hours Report Date: 6/22/2008 Job Category: COMPLETION 24 Hr Summary Installed Dimple -on connector to ct stub. Attempted to drift aline tool string. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:00 08:30 0.50 RURD COIL TA MOOT Pig up coil units. Start engines to warm up while having safety meeting www.peloton.com Report Printed: 9/18/2008 • • • Marathon Operations Summary Report « banrnaw Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 08:30 09:30 1.00 SAFETY MTG TA MDCT Review job objectives, safety concerns, killing well, safety factor during operations time (not to exceed 3 hours) otherwise flange up and kill well again, active gas production pad, red lights, blue lights, sirens, muster area, incident reporting, emergency vehicles, cell phones, manlift operations, overhead loads, crane safety, pinch points, someone must man blind rams at all times etc., job reviews, job assignments and procedures 09:30 10:00 0.50 PUMP WTR TA MDCT pump 25 bbl 6 % KCL water to kill well. Well dead at 10 am WHP = 0, Tubing pressure = 0 10:00 10:12 0.20 RURD EQIP TA MDCT remove night cap to verify well is dead. Replace cap. Knock bolts off flange, lift flange- stub lubricator off tubing above BOP. Use crane to drop down to ground level. Add 5ft lubricator to lubricator stub to cover added length. Remove studs from flange. Dress up tubing stub. Dimple -on connector. Install flange bolts /flange. 10:12 10:27 0.25 RURD ELEC TA MDCT rig up Expro wireline. Drift 1" OD weights through dimple -on connector- Failed. 10:27 10:57 0.50 SECURE WELL TA MDCT Secure wellhead for evening. Daily Operations Report Date: 6/24/2008 Job Category: COMPLETION 24 Hr Summary Change out dimple -on connector to grapple external connector. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 14:00 14:30 0.50 RURD COIL TA MDCT Start equipment to warm up while holding PJSM 14:30 15:00 0.50 SAFETY MTG TA MDCT PJSM - review ofjob to be performed, job assignments, pinch points. overhead suspended loads, active gas pad, red lights, blue lights, sirens, muster points. Review of job -Kill well, rig up coil unit to attach extension to coil dimple -on connector stub. Pull tubing up approx. 2 feet above BOP, set slips. Cut dimple on connector off, change out dimple on connector to external grapple connector. Rig up 2 x 2 valve to top of coil extension. Rig up a -line pump in sub, packoff and wireline unit to top of coil unit. Make dummy run with gauge ring and weight bars to botttom of coil (approx 7047), run Freepoint log. Rig down coil unit, set back injector head, secure well for evening. 15:00 16:00 1.00 GUT COIL TA MDCT Cut and straighten 30' length of tubing for extension on existing connector stub above BOP. 16:00 16:30 0.50 RURD COIL TA MDCT Dress tubing for attachment to dimple -on connector. Thread through injector head in prep for pull on tubing string. Pick up lubricator section for additional height on lubricator 16:30 17:00 0.50 PUMP WTR TA MDCT Kill well. Pump rate down tubing 1 1/2 BPM, Max pressure 2200 #. Volume - 25 BBL. WHP - 0 psi on casing. Pressure on tubing 0 psi at 16:45 hours. 17:00 22:00 5.00 RURD COIL TA MDCT Attach 6 foot lubricator section below gooseneck. Attach tubing tail to dimple -on connector, pull additional 3 feet above BOP's, attached upper connector, set slips. Cut off dimple on connector section, attach grapple connector. Attach gooseneck / lubricator to BOP. Trim tubing stub above injector, dress tubing attach 2 x 2 valve. 22:00 22:30 0.50 RURD COIL TA MDCT Rig up a -line to run Freepoint log. Ran out of manlift height. Concerns about attaching wireline wellhead equipment to top of tubing with valve versus height capable with manlift. Shutting down for evening due to safety concerns. Ordering out 80 foot manlift to be delivered in morning from Airport rental 22:30 23:00 0.50 SECURE WELL TA MDCT secure wellhead for evening, leave location, turn in work permit Report Date: 6/25/2008 Job Category: COMPLETION 24 Hr Summary Rig up BJ Coil / Expro wireline to run Freepoint indicator on stuck coil string www.peloton.com Report Printed: 9/18/2008 • • Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:30 10:30 1.00 SAFETY MTG TA MDCT PJSM - review activiities on job in detail. Assignment job responsibilities, active gas production pad, red lights, blue lights, sirens, muster area. Udelhoven working adjacent - included their crew in the safety meeting, overhead loads, wind gusting up to 21 mph, shutting job down for safety, buddy rule, three second rule, spotting of equipment, parking vehicles etc. 10:30 11:30 1.00 RURD COIL TA MDCT Rig up coiled tubing unit, trim up ct stub above injector head to reduce working height. Prep. to kill well 11:30 12:00 0.50 PUMP WTR TA MDCT At 11 am - 80 psi on wellhead. Pump 25 BBL 6% KCL water to kill well. 11:45 am well is dead. 0 psi on well head, 0 psi on tubing 12:00 13:30 1.50 RURD COIL TA MDCT Continue rigging up injector head, cut 4 feet off tubing stub above external connector to reduce overall height, add 4' heavy wall lubricator to better support injector head, connect external connectors, ready to rig up wireline 13:30 14:00 0.50 RURD ELEC TA MDCT Rig up Expro wireline to run Freepoint measurement and gauge ring run. 2 x 2 valve on top of tubing stub with Expro pump in sub and packoff on top of tubing string. 14:00 15:30 1.50 RUNPUL ELEC TA MDCT Run 1.25 inch gauge ring from surface to 7000 feet wireline measured depth. No way to correlate gauge ring run depth versus OH log depth but very likely 7047' coiled tubing depth. Pull out of hole ,prepare to run Freepoint indicator tool 15:30 20:00 4.50 RUNPUL ELEC TA MDCT Run Expro freepoint indicator tool. Tubing appears to be stuck from 5000 feet back up to 2500 feet. Above that the tubing is partial sanded in but could not get a true free pipe indication. Log will be e- mailed to Houston in a pdf file. Closely monitor wireline tension curve in Track I. If corkscrewed tubing grabs wireline, then wireline will pick up tool indicating false free pipe. In order to get a good tool reading, wireline needs to remain stationary while tubing is lifted to indicate stretch. After stretch is measured, I had wireline pickup on their wire to show that tool was working. When wireline weight increases, winch is pulling up to give a false pipe movement and the freepoint measurement should go to 100% free. Well at this point has been open for8 1/2 hours. I have shut down wireline operations to stay within my safety window after killing this well at noon. 20:00 21:00 1.00 RURD ELEC TA MDCT Rig down wireline unit from CTU 21:00 21:30 0.50 PUMP V'JTR TA MDCT Kill well with 6 BBL KCL water for safety margin. Pump pressure 380 #. Wellhead pressure immediately drops to zero psi. Well is dead at 9:30 pm 21:30 22:00 0.50 RURD COIL TA MDCT Rig down coil tubing unit.Lift injector head, break external connector, drop gooseneck down to ground level, install night cap to top of lubricator. Set gooseneck injector head onto trailer stand 22:00 22:30 0.50 SECURE WELL TA MDCT secure wellhead for evening, leave location, turn in work permit Daily Operations Report Date: 6/27/2008 Job Category: COMPLETION 24 Hr Summary Rig up BJ Coil / Expro run temp log Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 18:00 18:30 0.50 SAFETY MTG TA MSCT PJSM - go over procedure, assign jobs, overhead loads, pinch points, raining - slippery iron, active gas production pad, red lights for fire, blue lights for gas emmission, sirens, muster points, placement of light plants.etc 18:30 19:00 0.50 KURD COIL TA MDCT rig up pump in equipment to change over to nitrogen if we get circulation back to surface. 1400# on tubing. 19:00 19:30 0.50 PUMP WTR TA MDCT Pressure test flow lines to 4500 #, maximum pump pressure not to exceed 2600 #. Pump in 25 BBL 6 % KCL water. Well dead at 7:30 pm. Wellhead pressure = 0 #, tubing pressure = 0 #. Remove nitecap to verify pressure dead. Lift 4 foot lubricator. Tubing slips FAILED. Tubing has dropped down until external connector contacted tubing slips. 19:30 20:00 0.50 PUMP VVTR TA MDCT Pump 7/8" Bio -ball down tubing string to verify tubing integrity. Pump rate = .6 BPM. Pressure 700 psi. AT 14 barrels away, pump pressure spike to 2500 #, shut pumps down. Tubing pressure dropped immediately to 600# and continued to drop to 400 #. Engaged pumps at same rate. Pumped additional 3 barrels, total - 17 BBL. No increase in pressure. Pumped Bio -ball out of hole in tubing at 6404' which corresponds to Module 12 perforations from 6402 -6412 feet MD. www.peloton.com Report Printed: 9/18.0008 • • -r= Marathon Operations Summary Report N ary Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 20:00 22:30 2.50 KURD COIL TA MDCT Rig up CT injector head. Connect to tubing stub external connector. Pull test to 20K #- good, Install 2 x 2 valve on top op injector stub. 22:30 23:45 1.25 RURD ELEC TA MDCT rig up wireline pump -in -sub and packoff on top of 2 x 2 valve above coil injector head. Daily Operations Report Date: 6/28,2008 Job Category: COMPLETION 24 Hr Summary Run Temp log to Verify hole in coil tubing estimated at 6404 Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 23:45 03:45 4.00 RUNPUL ELEC TA MOOT Run Temp log on wireline 60 feet per minute in and 60 feet per minute out. Memory tool. 3/4" OD 03:45 04:15 0.50 PUMP WTR TA MDCT Pump 5 BBL 6% KCL water kill pill 04:15 06:00 1.75 WAITON ORDR TA MDCT Temp log being processed. Waiting on results and e-mails to S. Pohler / D. Eynon 06:00 06:30 0.50 PUMP LCM TA MDCT Pumped 3/8" cotton rope section approx. 1 1/2 feet long with a approx. 7/8" know in front with a 11/2" knot about 4 inches above it. Pumped approx. 16 barrels after inserting rope into flowline. Pressured up to 2000 #with slight leakoff, repeated with similar results. Hole in tubing is partially olugoed 06:30 08:30 2.00 WAITON ORDR TA MDCT Waiting on perf orders 08:30 09:00 0.50 SAFETY MTG TA MDCT Explosives safety meeting 09:00 10:30 1.50 RURD ELEC TA MDCT rig up electric line to shoot holes in tubing at 5650 feet 10:30 11:30 1.00 PERF TBG TA MOOT Perforate coiled tubing with tubing puncher spf aft -1 phasing 11:30 12:00 0.50 PUMP WTR TA MOOT Pressure u. to 2500# , three c cles, could not o.en u. perfs 12:00 13:00 1.00 PERF TBG TA MDCT Run in hole, perforate 2spf, 0 -180 phasing at 5400 feet. Pressure drop immediately in tubing when guns went off. 13:00 14:45 1.75 PUMP WTR TA MDCT Pumped 5 BBL 6 % KCL water into perfs and we have returns back to surface. Rate 1.5 BPM, 1500 psi. Pumped 50 BBL until returns cleaned up from soap. No sand. Dropped two 5/8" bio- balls. All 11 plus BBL saw them hit the perfs at 5400 feet, maintained pressure and brought it up. Appeared to , open up perfs at 5650 feet. Pumped 30 BBL water until returns clean at_ surface. 14:45 15:15 0.50 KURD ELEC TA MDCT rig up electric wireline to perforate at 5760 feet, 2 spf, 0 -180 degree phasing. 15:15 16:15 1.00 PERF TBG TA MDCT Perforate 5760 feet. 2 shots spaced one foot apart at 0 -180 degree phasing 16:15 17:00 0.75 PUMP WTR TA MDCT Pumped 4 - 5/8" Bio- balls. When we had between 11 -12 BBL away could see the balls hit the perforations at 5400 feet, 5650 feet and the perforation open up at 5760 feet in the tubing string. The returns were almost 1:1 with very little leak by at the rope at 6404 feet. Very little sand in the returns with pump rates at 1.75 BPM at 750 psi pump pressure. 17:00 17:30 0.50 RURD ELEC TA MDCT Rig down wireline. Safety concerns with number of hours worked and working with hazardous materials. 17:30 18:00 0.50 RURD COIL TA MDCT Rig down coil tuibing unit. Lay injector head down. 18:00 18:30 0.50 SECURE WELL TA MDCT Secure wellhead for evening, leave location, turn in work permit Report Date: 6/29/2008 Job Category: COMPLETION 24 Hr Summary Punch holes in coiled tubing, Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:00 09:30 0.50 SAFETY MTG TA MDCT PJSM- slips, trips , falls, overhead loads, heigths we are working at, pressure safety, good communications, active gas production pad, red lights for fire, blue lights for gas emission, sirens, buddy rule, 3 second rule, outline plan of work, assign jobs and responsibilities etc. 09:30 11:00 1.50 RURD COIL TA MDCT rig up coil tubing unit - 0 psi on tubing, 0 pis on casing. pump 2 BBL to fill tubing, additional 3 barrels to establish circulation back to surface. Contine pumping additional 5 BBL. Shut down, remove nighcap, pickup injector head and attach to lubricator over tubing stub. Attach coil in injector head to external connector on tubing stub in well. Reattach lubricator and set injector head on top of BOP's. Ready to rig up wireline 11:00 12:00 1.00 RURD ELEC TA MDCT rig up wireline to perforate coiled tubing at 6020 feet. Rig up pump in sub and wireline packoff on top of 2 x 2 valve on top of coiled tubing sticking out above injector head. www.peloton.com Report Printed: 9/18/2008 * 0 = � Marathon Operations Summary Report t ; % : O Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 13:30 1.50 PERF TBG TA MDCT Perforate coiled tubing at 6020 feet, 2 spf, phased 0 -180, spaced one foot apart. 13:30 14:00 0.50 PUMP VVTR TA MDCT Pump 6 -5/8" bio -balls down coiled tubing to divert flow from perforations at 5400', 5650" and 5760 feet. Pumped 11+ BBL water and pressure built up as balls hit perforations. Perforations at 6020 opened up nicely and pumped 80 BBL of 6% KCL water back to flow back tank. 14:00 14:30 0.50 PULD TBG TA MDCT Pull test on coiled tubing, calculations say tubing stuck at window in 9 518" casing (4100 ft). Tried to push tubing down but stacked out Rigging up to shoot puncher holes at 6300 feet. Pull test consisted of SK overpull (19,000 - 24,000) with tubing stretch of 15 1/8 inches. 14:30 15:30 1.00 PERF TBG TA MDCT perforate 2 spf, phasing 0 -180 degree, spaced one foot apart. depth 6300 feet._ 15:30 16:30 1.00 PUMP VVTR TA MDCT Drop 8 - 5/8" bio - balls. Balls starting hitting perforations about 11.5 BBL away. Could see each set hit the perforations. Circulation returns about 80 %. Pump rate 1.75 BPM and tubing pressure 1500 psi. Cooling down nitrogen truck to prepare to pump nitrogen 16:30 19:00 2.50 PUMP N2 TA MDCT 16:30 hours switch pump over to N2, circulate back to surface, ;monitor returns. Calculations tfor N2 to turn corner - 12 minutes, 30 minutes back to surface. Returns back to surface at 17:00 hours,17:10 cut N2. 17:15 returns back to surface very small trickle.17:15 set down on tubing string (19,000 - 0#) Tubing stacked out. Pull test- 5K psi overpull, stretch 16 inches. almost identical to previous 19:00 19:15 0.25 RURD 'ELEC TA MOOT Rig down electric line. 19:15 23:45 4.50 SECURE WELL TA MDCT shut in well. Cannot rig down cod without killing well. Fresh BJ crew just on location will monitor well througout the night to see if pressure builds up. Released vac truck driver, getting relief crane operator. Daily Operations Report Date: 6/3012008 Job Category: COMPLETION 24 Hr Summary Monitor pressure build up on well Ops Trouble I Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 1— 23:45 09:45 10.00 TEST PBU TA MDCT Monitor pressure buildup an well. At 7 pm last evening 88 #, at 11 pm - 500 #, at 6 am - 724# Report Date: 7/1/2008 Job Category: COMPLETION 24 Hr Summary Jet well to free CT. CT did not come free after unloading 35 BBIs water. Observe well and prepare to cut CT. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 RURD COIL AF Observe well. 10:30 11:00 0.50 SAFETY MTG AF Discuss work plan, JSA, and assign tasks. 11:00 11:20 0.34 RURD COIL AF RU to pump N2 11:20 11:35 0.25 TEST EQIP AF PT lines to 3500 psi. 11:35 16:00 4.41 PUMP N2 AF Jet well at 750 SCF /MIN. Returned 30 RBIs in first 45 min then less and less water for a total of 35 bbls in 4-1/2 hours. Closed backside and surged well 2 times without success. Pulled 9K overpull with no movement. SD N2 at 1600. 16:00 16:15 0.25 RURD COIL AF Observe well. Shut in pressure went to 150 psi on CT and 50 psi tubing. 16:15 '17:30 1.25 RURD COIL AF Pump 20 Bbls down CT to kill CT. Well started to pressure up in 40 min. RecoOnnect Lub and call for night crew. 17:30 06:00 12.50 RURD COIL AF Observe well and prepare to cut CT. Report Date: 7/2/2008 Job Category: COMPLETION 24 Fir Summary Killed wet and cut CT at 6486' and again at 6000'. Coil came free at 6000'. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 RURD COIL AF Observe well CT pressure = 1750 psi. Tubing pressure = 900 psi. 08:00 09:00 1.00 SAFETY MTG AF Held PJSm with Expro, Pollard, and BJ. Issued permit and discussed JSA. 09:00 13:30 4.50 RURD SLIK AF Spot and RU Pollard slickline and Expro eline. 13:30 14:45 1.25 RUNPUL SLIK AF Run 1.25" gauge cutter. Tag fill at 6492' WLMD. POH 14:45 15:30 0.75 RURD ELEC AF RU pollard slickline and RU Expro eline. 15:30 _15:45 0.25 SAFETY MTG AF Hold explosives safety meeting and SD SCADA and all comms. www.peloton.com Report Printed: 9118/2008 • • • M Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 15:45 16:30 0.75 RUNPUL ELEC AF RIH with 1.188" CT cutter and cut CT at 6486' ELMD with 8K overpull on CT. CT did not come free. POH 16:30 17:30 1.00 RUNPUL ELEC AF PU cutter #2 and RIH. Cut CT at 6000' ELMD with 8K overpull. CT came free. POH eline. Pulled CT up 3' free. 17:30 18:30 1.00 RURD ELEC AF RD and release Expro. 18:30 06:00 11.60 RURD COIL AF Observe well. Well stayed dead for about 18 hours and built to 60 psi CT pressure, 150 psi Tubiong pressure by 6 AM. Daily Operations Report Date: 7/2/2008 Job Category: COMPLETION 24 Hr Summary Repaired CT. Prepared to recover 6000' CT fish. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 12:15 5.25 WAITON OTHR AF CT unit had fuel leak when running. Stand by for repairs. 12:15 13:00 0.75 SAFETY MTG AF Hold PJSM. Discuss JSA, Safety checklist, and assign duties. 13:00 15:15 2.25 RURD COIL AF Stab CT on injector. Purge reel with N2. MU spool on dimple on connector. Ready to kill well and connect to fish. 15:15 15:30 0.25 SECURE WELL AF Secure location. Close permit and leave location. Report Date: 7/3 /2008 Job Category: COMPLETION 24 Hr Summary Pulled out 6000' CT. RD and released CT. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 08:00 1.00 SAFETY MTG AF Hold PJSM. Discuss JSA, Job assignments ands safety checklist. Discuss working with holes in pipe. 08:00 09:00 1.00 PUMP WTR AF Circulate 66 bbls KCI. Caught fluid after 3 bbls and returns after 9 BBIs (fluid around 1500). Well is dead 09:00 10:30 1.50 RURD COIL AF RU and stab on to fish. MU dimple on connector to fish. 10:30 13:00 2.50 RUNPUL COIL AF POH 6000' CT. Cut and presurve explosive cut end for use in selecting fishing THIS. 13:00 16:00 3.00 RURD COIL AF RD location and release CT. Close permit. Report Date: 8;82008 Job Category: COMPLETION 24 Hr Summary Blow down well, load hole with 6% KCL Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 09:00 09:30 0.50 SAFETY MTG TA MDCT PJSM - 750 # on tree, active gas production pad, red lights for fire, blue lights for gas emission, sirens, muster area, 09:30 11:00 1.50 RURD PIPE TA MDCT rig up flow back lines to flow back tank 11:00 11:15 0.25 FLOW BACK TA MDCT bleed 750# off tree, open master valves, 800# on well. bleed off to flowback tank. Well dead in 15 minutes 11:15 12:15 1.00 WAITON EQIP TA MDCT call out vac truck to fill hole with 6 % KCL. 12:15 13:00 0.75 PUMP WTR TA MDCT PUMP approx. 25 BBL 6% KCL water to fill hole up 13:00 14:00 1.00 RURD PIPE TA MDCT Rig down vac truck, flow back iron, shut in master valves and flowline valves. 14:00 14:30 0.50 SECURE WELL TA MDCT Report Date: 8/15/2008 Job Category: COMPLETION 24 Hr Summary Move in & rig up GD -1. Rig released from KDU -9 @ 12:00 hrs on 8/14/08. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 18:00 6.00 RURD RIG TA NDSP PJSM; Move in and rig uL Set pits, Spot sub over well center. Set Mud boat .Set Generator, Boiler and water tank. Run service lines and electrical lines. Move carrier on to mud boat and level up. Prep and elevate mast to floor level. 18:00 22:00 4.00 RURD RIG TA NDSP PJSM w/ crane operator: Crane up fuel tank on boiler house, gray iron, flow line, choke house, dog house, BOP connex, back landing, windwalls & stairs. 22:00 06:00 8.00 RURD RIG TA NDSP PJSM: Scope up mast. Level sub base. Tighten guy wires.S pot beaver slide & catwalk with rig floor. R/U mud manifold on rig floor. Install torque tube tie down post on rig floor. R/U drillers console. Put on carrier tarp. Repair oil seal on drawworks drum clutch. Report Date: 8/16/2008 Job Category: COMPLETION 24 Hr Summary Finish rigging up GD -1 over KBU 42 -7. N/U 7- 1/16" BOPE. www.peloton.com Report Printed: 9/18/2008 C M Marathon Operations Summary Report NAIVIY y Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Cods Activity Code Status Code Comment 06:00 08:00 2.00 RURD RIG TA NDSP Finish R/U GD- 1.Note: Torque tube & top drive not rigged up yet. 08:00 06:00 22.00 NUND BOPE TA NDSP Nipple rip 7 1/16X5000 BOP stack. Install spools on tubing bonnet. Bolt up single gate, double gate and annular preventer. Run power to rotating head hydralic pump panel. Set BOP stack. Install rotating head. Flange up 3 -118" X 5000 psi as annular valve. Fabricate adapter to flowline from rotating head. Rig up fillup line on trip tank, kill line & choke line. Daily Operations Report Date: 8/1712008 Job Category: COMPLETION 24 Hr Summary Install torque tube & top drive. C/O liners in pump #1 f/ 5" to 4 ". R/U to run 2- 1/16" drill pipe. R/U & test BOPE. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 NUND BOPE TA NDSP Complete nipple up of 7 1/16 BOP stack and Rotating Head 07:00 14:30 7.50 RURD RIG TA NDSP Rig up torque tube and top drive R/U bails to top drive 14:30 16:00 1.50 PULD EQIP TA NDSP P/U elevators and 2 1 /16tubing handling tools and safety valves and rig up 16:00 03:30 11.50 TEST ROPE TA NDSP Pull Back pressure valve, Set TWC. M/U 2 1/16 test joint. Test BOPE 250/ 5000 10min test. Test gas LEL & H2S alarms. Check flow & PVT system. Test accumulator draw down. TWC appeared to be leaking after testing blind rams. Bleed off pressure. Pull TWC & check valve seats (ok). Fill hole w/ 9 bbls brine. Install TWC & cont testing. Notified Tim Lawlor (BLM) & Tom Mounger (AOGCC) @ 8:15 hrs on 8/14/2006. Witness waived by: Lou Grimaldi (AOGCC) @ 16:30 hrs on 8/16/2008. 03:30 06:00 2.50 TEST BOPE TA MSBO Stem failed on annular 3" gate valve. Replace & retest to 5000 psi (ok). 2" ball valve on fillup line leaking at stem. Greased up packing & retest to 1000 psi (ok). Report Date: 8/18/2008 Job Category: COMPLETION 24 Hr Summary Rig up to P/U drill pipe. Test upper & lower kelly cock valves. P/U & stand back 1000'2 -1/16" drill pipe. M/U burn shoe assy & RIH to 1122'. Reverse circ hole clean. Conduct wet control drill. RIH w/ picking up 2- 1/16' drill pipe singles f/ 1122- 5518'. (Reverse circ hole clean @ 2056', 4049' & 5018). Wash down f/ 5518' - 5800'. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TEST ROPE TA NDSP Rig down test equipment. Lay down test jt. Pull TWC. 07:00 08:00 1.00 RURD OTHR TA NDSP Lay down & repair mousehole while rigging up to pick up 2- 1/16" drill pipe. 08:00 09:00 1.00 TEST BOPE TA NDSP Test upper & lower kelly cock valves @ 250/5000 psi f/ 10 min. 09:00 10:30 1.50 PULD DP TA NDSP PJSM w/ Weatherford: Pick up, drift, make up & stand back 16 stds 2- 1/16" drill pipe 10:30 12:00 1.50 PULD BHA TA NDSP PJSM: Make up burn shoe, 4 jts 2- 31'8" wash pipe & 3K rupture disk sub. 12:00 14:00 2.00 TRIP DP TA NDSP PJSM: RIH w/ fishing assy to 1122'._ 14:00 14:30 0.50 CIRC CFLD TA NDSP PJSM: Make up Tubing swivel head & reverse circ hole clean. Note: Conducted well control drill. 14:30 17:30 3.00 PULD DP TA NDSP RIH w/ picking up 2- 1/16" drill pipe singles f/ 1122- 2056'. 17:30 18:00 0.50 CIRC CFLD TA NDSP Reverse circulated hole clean @ 2056'. Circ @ 61 spm, 76 gpm, 430 gpm TQ 100 ft -Ibs, p/u 35 klbs, s/o 30 klbs, rot wt 32 klbs. 18:00 21:30 3.50 PULD DP TA NDSP Cont RIH w/ picking up 2- 1/16" drill pipe singles f/ 2056'- 4049'. 21:30 22:00 0.50 CIRC CFLD TA NDSP Reverse circulated hole clean @ 4049'. Circ @ 61 spm, 76 gpm, 840 gpm TQ 100 ft -Ibs, p/u 35 klbs, s/o 30 klbs, rot wt 33 klbs. 22.00 '01:00 3.00 PULD DP TA NDSP Cont RIH w/ picking up 2- 1/16" drill pipe singles f/4049'- 5018'. 01:00 01:30 0.50 CIRC CFLD TA NDSP Reverse circulated hole clean @ 5018'. Circ @ 61 spm, 76 gpm, 1050 gpm TQ 100 ft-lbs, p/u 39 klbs, s/o 33 klbs, rot wt 35 klbs. 01:30 03:00 1.50 CIRC CFLD TA NDSP Cont RIH w/ picking up 2- 1/16" drill pipe singles f/5018'- 5518'. 03:00 06:00 3.00 CIRC CFLD TA NDSP Wash down f/ 5518'- 5600'. Circ @ 61 spm, 76 gpm, 1020 gpm, TQ 150 ft -Ibs, p/u 43 klbs, s/o 33 klbs, rot wt 35 klbs. Heavy frac sand returned on Bottoms uo. Continue circulation until) shakers cleaned up. Fluid loss to hole 25bbls in 18 hrs. Mud weifgt 8.6+ Vis 41. Loss to hole 7bbls Report Date: 8/19/2008 Job Category: COMPLETION 24 Hr Summary Wash down to top of fish f/ 5800'- 6007'. Dress cut lip. Wash over fish f/ 6007'- 6015'. POOH. L/D burn shoe. P/U guide shoe. RIH to 5736'. www.peloton.com Report Printed: 9/18/2008 • /�1\ Marathon Operations Summary Report l w rrs Oil Company W ell Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 15:30 9.50 WSHOVR FISH TA NDSP Continue Reverse Circulating and clean out 3 1/2 Casing F- 5600'- 5863'. Hvy returns of frac sand over shaker. Work and rotate with tubing tongs to clean up Bridges of sand. 5942 6007' . Tag op of fish at 6007' Rotate and mill top of fish with burn shoe. Tong Torque 1000- 1200fp Clean up cut lip on top of Fish. Continue to rotate and wash to 6010' Attempt to wash without rotating No Success. Rotate to 6015'. Pump at 50spm 950psi. Mud wt. 8.6+ vis 45. Loss to hole 5bbls Up Wt 49khb s/o 27klb Rt wt 35 Torque 1000- 1100fp ( tong torque reading) . Max gas 120units from gas Buster. 15:30 16:30 1.00 CIRC CFLD TA NDSP Circulate B/U 50spm 950psi, Continue curclating until shakers cleaned up. Note Frac sand returning over shakers. Monitor well. RID tubing swivel circulating assy. Line up trip tank 16:30 22:00 5.50 TRIP DP TA NDSP PJSM: POOH with bum shoe/ Wash pipe assy. 96015' -125'. Note: No damage to connections. 22:00 23:00 1.00 PULD BHA TA NDSP PJSM w/ Weatherford: Retrieve rubber element from rotating head. Rack back 2 stds 2 -3/8" wash pipe. Lay down burn shoe. (Guide lip damaged on burn shoe). 23:00 00:00 1.00 PULD BHA TA NDSP PJSM: Make up guide shoe. Pick up 2 stds wash pipe. Install rotating head element. 00:00 06:00 6.00 TRIP DP TA NDSP RIH w/ wash pipe assy f/ 125' - 5736'. Daily Operations Report Date: 8,20/2008 Job Category: COMPLETION 24 Hr Summary R/U swivel and circ. head. Wash F/5923' to 6078'. Reverse CBU. POOH. LID rotating head element. Change out guide shoe with cutter /overshot tool. Install new element into rotating head. Service rig. RIH to 5877'. Ops Trouble Start Time End Time Dur(hrs) Ops Cods Activity Coda Status , Code Comment 06:00 09:00 3.00 WSHOVR FISH AF Wash F/5923' to 6019'. 76GPM 1050psi (reverse circ.) P/U 43K S/0 33K Rot 39K. Rotating w /tongs max torque 1k ft-lb. 09:00 09:30 0.50 CIRC CFLD AF Circ. B/U for connection(reverse circ.). 76GPM 1050psi. 09:30 12:00 2.50 WSHOVR FISH TA NDSP Wash F/6019' to 6025'. 76GPM 1050 psi Pressure increased by 100 psi @ 6025' . P/U to 6020' and pressure decreased by 100psi. Washed down to 6027' and saw a pressure increase at 6025 and cont to wash and pressure decreased @ 6027'. Started taking wt @ 6027' and had to rotate to get wash pipe to wash down rotated and washed down to 6034'. Wash down with no rotation F/6034' to 6038'. All reverse circ. 32 units gas @ 6027'. 12:00 13:00 1.00 WSHOVR FISH TA NDSP Cont. to wash down (reverse circ.)with no rotation 6036'to 6051'. Pressure gradually increased to 1150psi. 27 units gas @ 6042'. 32 units gas @ 6058'. 13:00 13:30 0.50 CIRC CFLD TA NDSP Cir. B/U for connection 76GPM 1153psi(reverse circ.). Grease leaking swivel packing. 13:30 15:00 1.50 WSHOVR FISH TA NDSP Wash w/ no rotation F/6051' to 6056' 76GPM 1127PSI(reverse circ.). Pressure increased to 1245psi @ 6056'. P/U and wash down to 6057' started taking wt. 15:00 17:00 2.00 WSHOVR FISH TA NDSP Rotate and wash 6056' to 6077' w/76GPM 1150psi Max torque 1000ft- Ib(reverse circ). Wash w /no rotation F/6077' to 6078'. 17:00 17:30 0.50 CIRC CFLD TA NDSP Circ. B/U for POOH(reverse circ.) 76GPM 1150psi. 17:30 23:00 5.50 TRIP DP TA NDSP PJSM w/ Weatherford: POOH on a single w/ 2- 1/16" drill pipe f/ 6078' -125'. 23:00 23:30 0.50 PULD BHA TA NDSP PJSM: Retrieve & lay down rotating head element. Rack back 2 stds 2 -3/8" wash pipe. Lay down guide shoe. 23:30 00:30 1.00 PULD BHA TA NDSP PJSM: Make up 1.8" I.D. guide shoe w/ overshot & cutter combo tool (continuous cutting overshot). Pick up 2 stds wash pipe. Install new rubber element into rotating head. 00:30 02:00 1.50 SERVIC RIG TA NDSP PJSM: Service rig. Grease top drive, blocks, crown & carrier drive lines. Extract & replace broken grease zirt on carrier#2 driveline. Reset C.O.M.. Install pressure sensor on standpipe. 02:00 06:00 4.00 TRIP DP TA NDSP PJSM: RIH f/125'- 5877'. Report Date: 8■21/2008 Job Category: COMPLETION 24 Hr Summary RIH and engage fish @ 6010'. Work overshot guide down to 6025'. Attempt to work overshot /cutter tool below 6025'. Cut 1 3/4" CT at 6022'. POOH and recover 13' of fish. M/U wash shoe and 120' of wash pipe and RIH. Wash down f/ 6016' to top of fish @ 6022'. Work pipe over fish. Wash 116' over fish f/ 6022'- 6138'. Reverse circ hole clean. POOH w/ wash pipe assy f/ 6136- 2280'. www.peloton.com Report Printed: 9/18/2008 • • 4,„„4„.„ M arathon Operations Summary Report . Q ii Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 ENGAGE FISH TA NDSP Engage fish @ 6009' and work 2.7" continuous cutting overshot tool to 6024'. Could not pass 6024'. 3/0 max 5K and P/U 25K over string wt. twice in an attempt to pass 6024'. Cut 1.75" CT with 35K overpull @ 6022'. 08:00 13:00 5.00 TRIP DP TA NDSP PJSM. L/D swivel head L/D 3 TBG singles. POOH w/ 2 1/16" DP. RID rotating head. Rack back one stand of 2 3/8" wash pipe. L/D one joint 2 3/'8" wash pipe. 13:00 13:30 0.50 TRIP TOOL TA NDSP LJD one joint 2 318" wash pipe and continuous cutter containing fish. Recovered 13' of fish. TOF was damaged with 2" X 2" piece missing. Top 62" of fish was scared. Wash shoe on continuous cutter had a slight flare in the tip of the cutlip. Cut on bottom offish was excellent. 13:30 19:30 6.00 TRIP BHA TA NDSP PJSM. M/U 2.7" slick wash shoe and 120' of 2 3/8" wash pipe and RIH. R/U rotating head. Cont. RIH w/ 2 1/16"DP to 6016'. 19:30 01:30 6.00 WSHOVR FISH TA NDSP PJSM: M/U circ swivel. Est parameters. P/U 42 klbs, 3/0 37 klbs, 76 gpm, 950 psi. & 400 ft-Ibs torque. Wash down f/ 6016' to top of fish @ 6022'. Work 1' over fish to 6023'. String torqued up to 800 ft-lbs, pressured up to 1100 psi. & taking wt. Made several attempts , no go. Reduced flow f/ 76 gpm to 32 gpm & washed over wlo rotating. Cony washing over fish @ 76 gpm f/6023' -6082' w/o rotating. Hit bridge @ 6082'. Rotated f/ 6082- 6083'. Cont washing w/o rotating f/ 6083'-6138'@ 76 gpm, 1050 psi, P/U 44 klbs, 3/0 37 klbs. Losing fluid to formation @ 12 bph. Reduce losses to 6 -8 bph after adding calcium carbonate to mud system. Total fluid losses throughout run = 77 bbls. Trip gas = 32 units. No gas while circulating. 01:30 02:30 1.00 CIRC CFLD TA NDSP Reverse circulate hole clean @ 76 gpm & cont circ until shakers clean. Pull up to top of fish & work over w/o circulating. 02:30 06:00 3.50 TRIP DP TA NDSP PJSM: POOH w/ wash pipe assy f/ 6022- 2280'. Note: Changed out tilt link switch on top drive panel. Daily Operations Report Date: 8/22/2008 Job Category: COMPLETION 24 Hr Summary POOH & lay down cut -lip guide shoe. Make up overshot /cutter tool. RIH to TOF @ 6022'. Engage fish © 6023' & work to 6025'. Work fish, no go. Cut fish @ 6023'. POOH. LID 1.3' fish. Service rig. M/U new cutter overshot tool. RIH to TOF @ 6023'. Attempting to work over fish @ 06:00 hrs. Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP TA NDSP PJSM. POOH w/2 1/16" DP. R/D rotating head. L/D 1 TBG single. rack back 1 stand 2 3/8" washpipe. POOH and LJD 2.7" X 2" slick wash shoe. 08:00 13:00 5.00 TRIP DP TA NDSP PJSM. M/U 2.7 x 1.8" continuous CT cutter tool w/120' of 2 3/8" wash pipe. R/U rotating head. RIH to 5897'. LID 6 dp singles from the derrick. DN 37K UP 42K. R/U circ. head and swivel assy. 13:00 15:30 2.50 TRIP DP TA NDSP RIH w/fBG singles and engage fish @ 6022'. Tagged up at 6025'. Could not move up or down. Work 25K over string wt and max 10K below 3/0 wt. Attempt to rotate. Could not move up or down or rotate freely. P/U and cut CT w/35K over. 15:30 22:00 6.50 TRIP DP TA NDSP R/D swivel and circ. sub and POOH w/ 2- 1/16" TBG f/ 6025' -127'. Note: Changed out trip tank pump. 22:00 23:00 1.00 PULD BHA TA NDSP PJSM: Retrieve & lay down rotating head element. Rack back 2 stds 2 -3/8" wash pipe. Lay down cut lip guide shoe. cutter /overshot tool & retrieve 16" fish. 23:00 00:00 1.00 PULD BHA TA NDSP PJSM: Make up guide shoe w/ overshot & cutter combo tool w/ 3' extension. 0/0 valve in rupture disk sub. Pick up 2 stds wash pipe. Install rubber element into rotating head. 00:00 04:00 4.00 TRIP DP TA NDSP PJSM: TIH w/ 2- 1/16" TBG f/ 132- 5995'. 04:00 06:00 2.00 ENGAGE FISH TA NDSP Pick up circulating swivel. Reverse circ down f/ 5995' to top of fish @ 6023'. Cont reverse circ w/ work guide shoe over fish f/ 6023' -6025' w/ 50 gpm, 800 psi. Assembly hung up. Attempt to rotate. Torqued up to 800 kft-Ibs. Worked down w/ 7.5 klbs. Pulled free w/ 16 klbs over. Continue attempt to work over fish. P/U 42 klbs, S/0 37 klbs. Report Date: 1123/2008 Job Category: COMPLETION 24 Hr Summary Cont. to attempt to work wash shoe over fish @ 6025'. POOH. Service rig. M/U cutter /overshot assy. RIH. Attempt to work over fish. Cut fish @ 5025'. POOH. Retrieve & recover 25" fish. Service rig. P/U 550' washover assy. www.peloton.com Report Printed: 9/18/2008 it Marathon Operations Summary Report �._ Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment l 06:00 08:00 2.00 TRIP DP TA NDSP Attempt to work 2.71" wash shoe and continuous CT cutter below 6025'(TOF 6023). Work with max 8K below normal DNwt and Max 15K over normal string wt to pull free. Attempted several tries with reverse circ. and rotating to 800ft-Ib. 08:00 14:00 6.00 TRIP DP TA NDSP PJSM. R/D swivel and circulating head. POOH wf2 1/16 "TBG. R/D rotating head and POOH w/2 3/8" Washpipe and continuous CT cutter. 14:00 15:00 1.00 SERVIC RIG TA NDSP Clean and organize the rig floor. Service rig. 15:00 16:00 1.00 PULD BHA TA NDSP PJSM. M/U 2.71" wash shoe w/1 joint 2 3/8" wash pipe(1 -joint of 2 3/8" wash pipe between shoe and cutter). M/U cont. CT cutter and 3- joints 2 3/8" wash pipe(3 joints 2 3/8" wash pipe above cutter). R/U rotating head. 16:00 20:30 4.50 TRIP DP TA NDSP PJSM: TIH w12- 1/16" TBG f/ 129' - 6018'. 20:30 22:30 2.00 ENGAGE FISH TA NDSP Pick up circ. swivel. Work guide down slowly over fish @ 6023'. Did not see anything. Cont (c� down over cutter tool 6025L Saw wt. slightly - bobble, no J problems going through. Cony working down into overshot @ 6026'. Wt. begin stacking up to 8 klbs. Fish jammed 1' into grapple. Attempt to work through grapple with 12 -15 klbs over & 8 klbs slack off. Make multiple attempts to work through, no go. Cut fish @ 6025'. 22:30 03:00 4.50 TRIP DP TA NDSP PJSM: Inspect deadman, crown & drawworks. RID circ swivel. POOH w/ 2- 1/16" TBG f/ 6060' -129'. Note: Losing fluid A 1 bph.., 03:00 04:00 1.00 PULD BHA TA NDSP PJSM: Retrieve & lay down rotating head. Rack back 2 stds 2 -318" wash pipe. UD cutter/overshot tool. Retria &recover 25" fish. 04:00 04:30 0.50 SERVIC RIG TA NDSP Service rig. Geese top drive, blocks & crown. Check carrier drive lines. 04:30 06:00 1.50 PULD BHA TA NDSP PJSM: P/U & RIH w/ cutlip guide shoe & 2 stds 2 -318 ". Cont RIH while P/U 14 jts 2 -3/8" wash pipe & rupture disk. Install rotating head element. Daily Operations Report Date: 8/24/2008 Job Category: COMPLETION 24 Hr Summary RIHw/2.7 wash shoe and 558' of 2 318" WP to 6011'. Slide over fish at 6025'. Reverse circ. down to 6144'. Work through tight area 6144'- 6146'. POOH w /wash shoe and WP. Circ. viscosified brine w /10PPB CaCo3. POOH. Rill & test BOPE to 250/5000 psi f/ 10 min. R/D test equipment. R/U & RIH w/ fishing assembly 48. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:30 4.50 TRIP DP TA NDSP RIH w/2.7" Wash shoe w/cutlip guide and 558' of 2 3/8" WP to 6011'. R/U circ. sub and swivel. Cont. RIH and slide over fish @ 6025'. 10:30 11:30 1.00 WSHOVR FISH TA NDSP Wash over fish F/6025' to 6144' Rev circ. w176GPM 1050psi. Circ. B/U @ 6100' and 6131'. Tagged up at 6109'. P/U and continued to wash to 6144 wino problems. Tagged @ 6144'. P/U 41K S/0 36K. Dynamic losses 15- 20BPH. 11:30 13:30 2.00 WSHOVR FISH TA NDSP Work tight area F/6144' to 6146'. Max wt down 8K below string wt. Over pull 5K to work free. Rotate w/800 ft-lb. Rev circ. w /40 -60 SPM 775 psi to 1300psi. Packing off when stacking wt. Dynamic losses 20BPH P/U 41 K S/0 36K 13:30 14:30 1.00 CIRC CFLD TA NDSP Displace hole w/ viscosified KCL brine w /10PPB CaCo3. 8.7 ppg. 14:30 19:00 4.50 TRIP DP TA NDSP UD swivel and circ. sub. LID 4 x 2- 1 /16 "DP singles. POOH w/ 2- 1/16" TBG. 19:00 20:00 1.00 PULD BHA TA NDSP Retrieve rotating head element. Rack back 9 stds 2 -318" wash pipe. UD cutlip guide shoe. Static fluid losses 0.5 bph. Note: Guide shoe showed substantial signs of additional metal to metal weal.. 20:00 04:00 8.00 TEST ROPE TA NDSP PJSM w/ Vetco Gray: Install TWC. Make up 2- 1/16" test joint. Test BOPE & , all related components to 250/5000 psi f/ 10 min. Test gas LEL & H2S alarms. Check flow & PVT system. Perform accumulator draw down test. Test rotating head to 1000 psi. Witness waived by Jim Regg (AOGCC) @ 16:30 hrs. on 8/2212008. Notified Tim Lawlor (BLM) @ 16:30 hrs. on 8/22/2008. 04:00 04:30 0.50 RUNPUL VLVE TA NDSP PJSM: Rig down test equipment. Pull two way check valve. 04:30 05:30 1.00 PULD BHA TA NDSP PJSM: Move 7 stds 2 -3/8" wash pipe in derrick. M/U continuous cutter fishing assembly w/ 4 jts wash pipe. Install rotating head element. 05:30 06:00 0.50 TRIP DP TA NDSP RIH w/ 2- 1/16" TBG to 420'. www.peloton.com Report Printed: 9/18/2008 • Marathon Operations Summary Report M aTM .OilCompany Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 8/25/2008 Job Category: COMPLETION 24 Hr Summary RIH w Cont. CT cutter on2 1/16" DP to 6022'. Slide over fish @ 6025'. Cont. RIH to 6141'. p/u to engage grapple but did not have any overpull. Work tools up and down but grapple did not grab. POOH. Service rig. P/U new continuous cutter tool. RIH w/ fishing assy #10 to 6025'. Slack off over fish f/ 6025'- 6141'. Make cut @ 6106'. POOH f/ 6106' -128'. Retrieve rotating head element. Retrieve & recover 82'+ fish. M/U wave burnshoe /mill & 9 stds washpipe. Note: No swollen sections of coiled tubing found in fish. No second perforation found. 0ps Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:30 3.50 TRIP DP TA NDSP Cont. RIH w /cunt. CT cutter and 2 3/8"WP on 2 1/16" DP to 6022. P/U 42K 8/0 37K. 09:30 11:00 1.50 WSHOVR FISH TA NDSP R/U swivel and circ. sub. Cont. RIH. Tagged fish of 1 6025_'. Had to turn assy twice to get over fish. Cont. RIH to 6141'. P/U to engage grapple . No overpull was observed. Work up and down twice to engage grapple. No overpull observed. Rotated 1/4 turn and P/U. 3K drag was observed as POOH to top of fish. After the grappel passed the top of fish no drag was observed. 11:00 15:00 4.00 TRIP DP TA NDSP PJSM. RID swivel and circ. sub. POOH w/ 2 1/16" TBG. RID rotating head. POOH w/2 3/8" washpipe continuous cutter and 2.7 wash shoe. 15:00 16:00 1.00 SERVIC RIG TA NDSP Service rig. Inspect grappel. Grappel teeth packed with metal shavings and pipe dope. No fish recovered. 16:00 21:00 5.00 TRIP DP TA NDSP PJSM. M/U 2.70 wash shoe w/cut lip guide 30' 2 3/8" WP cont. CT cutter 90' of WP. R/U rotating head. RIH to 6025'. 21:00 22:30 1.50 ENGAGE FISH TA NDSP P/U circ swivel. Slack off over fish f/ 6025'- 6141'. P/U to 67 klbs & sheer pins. Cont pulling to 76 klbs & cut fish @ 6106'. LID circ swivel. Note: Saw slight bobble on weight indicator as fish entered the grapple. 22:30 03:00 4.50 TRIP DP TA NDSP PJSM: POOH with fish f/ 6141 -128'. Static fluid losses 0.5 bph. 03:00 05:30 2.50 PULD TBG TA NDSP PJSM w/ BJ Coiltech: Pull rotating head element. Retrieve & recover 83' fish. Mark jts & inspect for anomalies. Entire recovered section in gauge @ 1.75 ". TOF 6108'. 05:30 06:00 0.50 PULD BHA TA NDSP PJSM: P/U wave burnshoe/mill & RIH w/ 9 stds 2 -3/8" washpipe. Report Date: 8/26/2008 Job Category: COMPLETION 24 Hr Summary RIH w/ mill shoe & washpipe assy to 6072'. R/U circ swivel. Wash over fish @ 6108'. Cont wash down over fish to 6146'. Attempt to mill out restriction @ 6146'. Reverse circ & displace hole to viscous brine w/ 10.0 ppb CaCo3. POOH w/ fishing assy #10 to 555'. Retrieve rotating head element. Rack back 9 stds 2 -3/8" wash pipe & lay down mill shoe. Clean & service rig while wait on fishing tools. Ops Trouble I Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment L- 06:00 07:00 1.00 TRIP BHA TA NDSP Cont. RIH w/1 .76" X 2.70" mill shoe and 554' of 2 3/8" wash pipe. Rib rotating head. 07:00 11:30 4.50 TRIP DP TA NDSP RIH w/2 1/16" TBG to 6072'. 11:30 13:00 1.50 TRIP DP TA NDSP PJSM. R/U circ. head and swivel. Break rev circ. 76GPM 1036psi. P/U 42K 8/0 37K. Wash over fish @ 6108 and cont to wash to 6134'. Rev circ. B /U. 13:00 14:30 1.50 TRIP DP TA NDSP Wash down F/6134 to 6146'. Tag @ 6146. Attempted to mill @ 6146'. Rotate with hydraulic tongs @ 45RPM. 50GPM 885psi. Max torque 1000ft -lb. With minimum wt applied(500 -1000 lb) max torque of 1000 ft-lb reached and packing off. No progress made. Losses 10- 12BPH. 14:30 15:30 1.00 CIRC CFLD TA NDSP Rev circ. and displace to viscous brine w /10PPB CaCo3. 15:30 21:00 5.50 TRIP DP TA NDSP PJSM: POOH w/ 2- 1/16" TBG f/ 6146' -555'. Static losses 0.5 bph. 21:00 22:00 1.00 TRIP BHA TA NDSP PJSM: Lay down rotating head element. Rack back 9 stds 2 -3/8" wash pipe. Lay down mill shoe. Note: Mill shoe found pinched in w/ visible signs of metal to metal damage. 22:00 06:00 8.00 WAITON EQIP TA NDSP Wait on Bowen overshot. Service rig. Clean up rig floor & cellar. Repair light on BOP panel. Inspect brakes & drilling line. Adjust kick rollers on drawworks. Take measurements & photos for new top drive. Inspect & remove shims on drawworks clutch. Report Date: 8.272008 Job Category: COMPLETION 24 Hr Summary Perform rig maintenace while wait on fishing tools. M/U motor assembly w/ mill. RIH. M/U top drive. 0/0 grabber dies on top drive. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 11:00 5.00 WAITON EQIP TA NDSP Inspect and clean disc brakes. Get derrick and substructure measurements. Pump out cellar and cuttings tank over shaker and condition brine. 11:00 12:00 1.00 WAITON EQIP TA NDSP PJSM. 0/0 saver sub to HT -38. www.peloton.com Report Printed: 9/18/2008 1 • Marathon Operations Summary Report M ARATHON Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 12:00 00:00 12.00 WAITON EQIP TA NDSP PJSM. Write and modify JSA's. Repair charge pump lights on drillers console. Cal LEL sensor in cellar. Repair hand rail between rigfloor & pits. Prep to paint tote for waist oil. Change out sheave on drillers side tong hanging lines. Change oil in #2 carrier. Inspect & sort bits. Replace joystick on drillers console. Work on camp Gai -Tron boxes. Note: Static losses < 1 bbl in 24 hrs. 00:00 01:30 1.50 PULD BHA TA NDSP PJSM: Stage & strap tools on rig floor. Make up junk mill inside shoe mill, motor, shoe mill over junk mill, motor & hydraulic disconnect w/ 5K rupture disc. Install rotating head element. 01:30 06:00 4.50 TRIP DP TA NDSP PJSM: RIH w/ 2- 1/16" drill pipe to 6094'. P/U single jt. drill pipe. M/U top drive. Change grabber dies on top drive. Daily Operations Report Date: 8/28,2008 Job Category: COMPLETION 24 Hr Summary Dress TOF.6109.50,CIean Trip tank, UD X/0 to top drive, R/U Zip elavators, POOH w /Mill, Motor, P/U @.70 wash shoe, 2 joints wash pipe, RIH, Stop at 6146' Pipe measurement, R/U wireline RIH w/ Gamma, CCL, TOF/ 6113' WLM, POOH, RIH w/ 1.25 gauge ring, POOH, RIH w/ cutter, Cut coil at 6158' WLM. POOH UD wireline,POOH Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 TRIP DP TA NDSP Taq TOF as 6109.5'. Dress T0F(4.5" milled oft). P/U 42K 3/0 37K . Mill a W/50GPM 1350psi. Mill w/75- 150psi dill. 8.6PPG 42Vis. No fluid losses. Note: 2 1/4" motor run. 08:30 09:00 0.50 CIRC CFLD TA NDSP CBU (63GPM 1700psi). No fluid losses. 09:00 09:30 0.50 TRIP DP TA NDSP Clean and fill trip tank. UD X/0 to top drive. R/U Zip elevators. 09:30 15:30 6.00 TRIP DP TA NDSP PJSM;POOH w/2 1/16" TBG. R/D rotating head. UD mill and motor. Inspect mill. Good indication of dressing TOF. 15:30 21:00 5 50 TRIP DP TA NDSP P/U 2.70 wash shoe with cutlip guide and 2 joints 2 3,8" wash pipe. R/U rotating head. RIH w/ 2 1/16" TBG. 6146' Pipe measurement.Up wt. =42K Dn wt. =37K Set slips with 5K overpull for wireline work, 47K on slips 21:00 03:30 6.50 RUNPUL ELEC TA NDSP PJSM; With Expro wireline, Rig up and run in with Gamma, CCL. Found top of fish at 6113' WLM. POOH run in hole with 1.25 gauge ring to 6164' WLM, no problems getting in or pulling out of fish. POOH. Pick up wireline cutter RIH Correlate WLM with Expro Gamma Ray , CCL logs f/5- 13 -08, Cut coil at 6158' WLM. Pipe measurement TOF at 6152'.POOH.Lay down wireline tools. 03:30 04:00 0.50 RURD OTHR TA NDSP PJSM; Rig up Zip bails, pick up joint of 2 1/16 pipe. 04:00 06:00 2.00 TRIP DP TA NDSP PJSM; Pull on fish, no overpull, Up wt. =42K Cont. to POOH. Est. 45' of fish. Report Date: 8,29/2008 Job Category: COMPLETION 24 Hr Summary POOH and UD continuous CT cutter and 39' of fish. Service rig. RIH w /mill shoe and WP to 555', Build wet plug, RIH f/555'- 6147', W/R f/6147'- 6188', POOH Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP DP TA NDSP Cont. POOH w(2 1/16" TBG. 08:00 10:00 2.00 TRIP DP TA NDSP PJSM. R/D rotating head. PJSM. POOH w/2 3/8" washpipe and fish. PJSM for UD fish. Recovered 39.31' of 1 3/4" CT fish. TOF 6147'. Flare on cut 1.95 ". 10:00 10:30 0.50 SERVIC RIG TA NDSP Service rig. 10:30 12:00 1.50 WAITON ORDR TA NDSP Inspect fish. Clean and organize rig floor while discuss with office BHA options. Wait to get BHA confirmation. 12:00 13:00 1.00 TRIP BHA TA NDSP PJSM. M/U 1.76" X 2.70" mill shoe RIH w/9 stands 2 3/8" WP to 555'. 13:00 13:30 0.50 TRIP DP TA NDSP Cont. RIH w/2 1/16" TBG. Fluid flowing up work string and the wind almost blowing the fluid over the driller side windwall. 13:30 14:30 1.00 TRIP DP TA NDSP While build wet plug for 2 1/16" TBG modify JSA for running a wet plug. PJSM for running pipe with a wet plug. 14:30 20:00 5.50 TRIP DP TA NDSP Cont. RIH f/ 803'- 6147'(tagged and had to work past 6086). 20:00 00:00 4.00 WSHOVR FISH TA NDSP PJSM;Wash and ream U6147 Up wt =42K Dn wt =36K 55 rpm 1 -2K wt on shoe, pump -80 gpm -880 psi made 41' washing over fish, frac sand returned over shaker , lost 78 bbls.,4 hrs. 00:00 01:00 1.00 CIRC CFLD TA NDSP PJSM; Spot 10 ppb Calcium Carbonate pill, Rig down swivel. 01:00 05:00 4.00 TRIP DP TA NDSP PJSM; POOH w/ washpipe, burn shoe. 05:00 06:00 1.00 TRIP BHA _TA NDSP PJSM; POOH w/ Wash pipe. Out of hole with shoe 3/4 of crown missing. www.peloton.com Report Printed: 9/18/2008 • 1 • 7 M Marathon Operations Summary Report Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Daily Operations Report Date: 8/30/2008 Job Category: COMPLETION 24 Hr Summary M/U mill shoe and WP. RIH Tag @ 6148'. Work through tight spot @ 6148'- 6149'. Wash down to 6187'. Wash and mill F/6187' to 6196',pcaked of no retuns, POOH, Unplug pipe CBU, RIHt/3078'- 6196'CBU on bottom ,cont. wash over fish f/6196'- 6215', lost returns,pump Cal, carb pill POOH,losses down to 1/2 BPH Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP BHA TA NDSP PJSM. M/U 1.95" X 2.70" mill shoe and 2 3/8" WP and RIH to 555'. 07:00 11:00 4.00 TRIP DP TA NDSP R/U rotating head. RIH w/ 2 1/16" TBG. Tag @ 6148'. 11:00 11:30 0.50 TRIP DP TA NDSP PJSM. R/U swivel and circulation sub. P/U 42K 5/0 37K. 11:30 14:30 3.00 WSHOVR FISH TA NDSP PJSM. Wash over 1.75" CT fish F/6148' to 6149'. Reverse circ. 50GPM 937 psi. Rotate w /hyd. tongs 5ORPM max torque 1000ft-lb. Max wt DN 5K below S /0. Circ. the long way to unplug string. Cont. to reverse and attempt to work past 6149' rotating. String plugged up 3 more times. Pumped the long way each time to unplug the string. 14:30 15:30 1.00 TRIP DP TA NDSP R/D swivel and circulation sub. POOH to 5886'. RIH to 6148'. R/U swivel and circ. sub. 15:30 16:30 1.00 WSHOVR FISH TA NDSP Wash over 1.75" CT fish F/6148' to 6165'. Rev. circ. 50GPM 845psi. Rotated w/ hyd. tongs 5ORPM max torque 1000 ft-lb. Rev. CBU @ 6165'. Losses 30BPH. 16:30 17:00 0.50 WSHOVR FISH TA NDSP Wash over 1.75" CT fish F/6165' to 6187' SOGPM 850 psi no rotation. Losses 60BPH pumped around 1OPPB LCM pill losses decreased to 306PH. 17:00 18:30 1.50 WSHOVR FISH TA NDSP Wash over 1.75" CT F /6187'- 6196'. Rev Circ. w/25GPM rotating with hyd. tangs 5ORPM max TQ 1000ft-lb. Max wt DN 5K below 5/0. Losses 20BPH. 18:30 19:30 1.00 TRIP DP TA NDSP PJSM;Packed off, no returns, POOH 66196' -6078' 19:30 20:00 0.50 CIRC CFLD TA NDSP brea'k circ. down drill pipe clear pipe, switch to reverse circ. circ. bottoms up. 20:00 20:30 0.50 TRIP DP TA NDSP PJSM; RIH f/6078 -6196' 20:30 21:30 1.00 CIRC CFLD TA NDSP On bottom circ. bottoms up and pump 54 bbl. -10ppb calicum carbonate pill, losing 50 BPH .Pill not slowing losses , 21:30 23:00 1.50 WSHOVR FISH TA NDSP PJSM; Cont. to wash over fish f16196'- 8215', losing 60 BPH, with 30 -50 % returns.Then lost returns.100% Up wt =42 Dn wt =37 40 -45 rpm 23:00 00:30 1.50 CIRC CFLD TA NDSP PJSM; Spot 50 bb1,15 ppb Cal Carb. pill Rig up and flush choke line and poor boy with water to check for any restrictions or plugs in lines. 00:30 06:00 5.50 TRIP DP TA NDSP PJSM; POOH wit 1/16 pipe. L/D mill shoe. Shoe 50% worn with some junk damage. Beginning of trip static losses 2 BPH. Losses continued to decrease to .5BPH. Report Date: 8131/2008 Job Category: COMPLETION 24 Hr Summary Clean and organize rig while wait on Hipp- Tripper. M/U overshot and Hipp- Tripper RIH and latch fish in overshot @ 6147'.Start Hipp Tripper and move fish to 6068', Stopped moving, Hipp Tripper quit working, Release fish,POOH, Test BOP Op Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 12:00 6.00 WAITON EQIP TA NDSP Clean ande organize rig while wait on Hipp- Tripper and Personnel to run it. 12:00 18:00 6.00 TRIP DP TA NDSP PJSM. M/U Bowen overshot, circ. sub, Hipp- Tripper and accelerator. RIH to 334'. Surface test Hipp- Tripper. Cont RIH w/2 1/16" TBG 6135' UP 42K DN 36K Eznaaoe fish (a7 6147', Latch fish in overshot and pull 20K over string wt to confirm latch. 18:00 19:30 1.50 JAR FISH TA NDSP Pull 5K on fish and pump 24 stks., 30GPM, 1400 psi to acuate Hipp- Tripper Mart mnvinp fish Hp hnll= Pull 79' up the hol@,,55K= up wt.No gains No losses MW 8.9PPG 43Vis. 19:30 21:30 2.00 JAR FISH TA NDSP PJSM; Fish stop moving up hole, hit tight spot at 6068', Hipp- Tripper stopped working, try to restart without success.Max. pulled on fish 75K. 21:30 22:00 0.50 SETREL TOOL TA NDSP , P,ISM Release overshot off fish at 6068'.(Top of Fish) , 22:00 03:00 5.00 TRIP DP TA NDSP PJSM; POOH with overshot and Hipp- Tripper.Hole took proper hole fill. 03:00 03:30 0.50 PULD BHA TA NDSP PJSM; Break down and load out overshot and Hipp- Tripper. 03:30 06:00 2.50 TEST BOPE TA NDSP , PJSM Set two way check and test BOPE 5 min. 250 psi low, 5000 psi high. Annular 250psi low, 3500 psi high, Waived by Chuck Scheve AOGCC 20:00hrs 08/302008. Report Date: 9/1/2008 Job Category: COMPLETION 24 Hr Summary Test BOPE.M /U Bowen overshot RIH, Engage fish @6068',Moved 10 ",Release overshot, TOF @6058', POOH, Pick up cutter, 308' wash pipe,Cut drilling line, RIH w/2 1/16 pipe www.peloton.com Report Printed: 9/18/2008 e~ . i Marathon f Operations Summary Report . e- 4 =.,;r.,, Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 TEST ROPE TA NDSP Test 7 1/16" 5M BOP 2 1/16" Upper pipe rams, 2 1/16" Lower pipe rams, Blind rams, CMV1 -12, manual choke, auto choke, choke line HCR valve, choke manual valve, kill line inner and outer manual valves and kill line check valve, upper and lower top drive valves, TIW valve and IBOP valve to 250 /5000psi 5min. Test 7 1/16" annular to 25013500psi 5min. Test rotating head to 250/1500psi 5min. Test all gas alarms. Witness waved by Chuck Scheve 20:O0hrs 8/30/2008. 10:00 15:00 5.00 TRIP BHA TA NDSP PJSM. M/U Bowen overshot, Circ. sub, Agitator, Accelerator RIH with one single 2 1/16" TBG. R/U Rotating head. Cont. RIH w/ 2 1/16" TBG. to 6064'. 15:00 16:30 1.50 WORK PIPE TA NDSP Enaaae fish la 6068'. P/U and pull 20K over string wt to confirm fish is in grappel. Pump w/60 -80GPM to activate Agitator. Attempt to work stuck 1.75" CT free with 5K below string wt to 18K above string wt. 16:30 17:00 0.50 WORK PIPE TA NDSP Pulled 20K over string wt and fish came free. Moved fish 10' (TOF 6058)., 17:00 19:30 2.50 WORK PIPE TA NDSP Attempt to work fish free w /5K below string wt to 28K over string wt. Varried flowrate on Agitator 60GPM to 100GPM.Try right hand torque,pipe still not moving. Mud wt. 8.9 Visc. 42. 19:30 20:00 0.50 SETREL TOOL TA NDSP PJSM;Release overshot from fish. 20:00 01:30 5.50 TRIP DP TA NDSP PJSM; POOH with overshot.And Remove rotating hd, lay down overshot. 01:30 02:00 0.50 TRIP BHA TA NDSP PJSM; Pick -up cutter , run 308' washpipe. 02:00 03:00 1.00 SLPCUT DLIN TA NDSP PJSM; Slip cut drilling Iine.Cut 247' 03:00 06:00 3.00 TRIP DP TA NDSP Cont. RIH w/ 2 1/16 pipe. Note: TOF 6058 ' CT recovered 138.7' CT pulled up hole 89'. Daily Operations Report Date: 9/2/2008 Job Category: COMPLETION 24 Hr Summary Cont. to RIH w /Cont. CT cutter to 6050'. R/U swivel and circ. sub. Cont. RIH to 6180'. Cut Ct @ 6176'. POOH. LID 118' of CT fish. M/U 2.70" drag shoes and 245' of 2 3/8" wash pipe and RIH. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 09:00 3.00 TRIP DP TA NDSP Cont. RIH w/2 1/16" TBG to 6050'. 09:00 10:30 1.50 TRIP DP TA NDSP PJSM. R/U swivel and circ. sub. Cont. to RIH to 6180(TOF 5 60581. P/U and pull 35K over to cut CT@ 6176'. 10:30 14:30 4.00 TRIP DP TA NDSP PJSM. R/D swivel and circ. sub. POOH w/ 2 1/16" TBG to 350'. 14:30 15:30 1.00 TRIP BHA TA NDSP PJSM. R/D rotating head. POOH w12 3/8" wash pipe. 15:30 17:00 1.50 TRIP BHA 'TA NDSP PJSM . LJD 1.75" CT fish(118 ). Inspect fish. TOF in good condition. Junk markings and vertical gouges in top 40'. Now TOF F17R' 17:00 18:00 1.00 TRIP BHA TA NDSP PJSM. M/U 2.70" mill shoe(drag type) and 245' of 2 3/8" wash pipe and RIH w12 1/16" TBG to 550'. R/U rotating head. 18:00 23:00 5.00 TRIP DP TA NDSP Cont. to RIH f/247' -6176' 23:00 06:00 7.00 WSHOVR FISH TA NDSP Wash nvar fish at 6176' Cont. to wash and rotate down. Up wt. =42k Dn wt. =37K, 45 RPM, Not exceeding 1000 tq. pump =45 stks. -935 psi, losses= 20 bbls. hr., control losses with(2) -25 bbl -12 ppb talc. carb pills. Mud wt. =8.9 #, 43 visc. Total fluid lost =131 bbls.Wash 66176' -6365' Note: TOF 6176' Total fish recovered to date 257' Report Date: 9/3/2008 Job Category: COMPLETION 24 Hr Summary POOH w/Shoe /washpipe, lube rig, MWU cutter, RIH, POOH, LJD cutter, Pick up Bowen overshot, Work over fish, Fish pulled free w/ no overpull.POOH Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:30 2.50 WSHOVR FISH TA NDSP Continue to wash over fish f -6365' -6401' 45spm 935psi 45rpm 1000 fptorque , using tubing tongs to rotate pipe Fluid loss at 30bbls per hour circulating. 08:30 09:30 1.00 CIRC CFLD TA NDSP Circulate B/U 45spm 935psi at 6401' continue circulating until shakers clean up (frac sand). Spot 30bbl 12ppb Cal carb pill. No losses Static. 09:30 15:30 6.00 TRIP EQIP TA NDSP Monitor well P0H6401 Tubing ,Pull rotating head bearing LID wash pipe assy. Note drag tooth shoe cutrite showed wear with 3 cutters gone. No gain loss hole stable. 15:30 16:00 0.50 SERVIC RIG AF Lube rig. Carrier drive lines blocks and crown. 16:00 17:00 1.00 TRIP TOOL TA NDSP Make up weatherford overshot cutter, P/U Bjts wash pipe and rih 17:00 19:00 2.00 TRIP DP TA NDSP PJSM;Cont. RIH w/ 2 1/16 pipe f/247' -2932' 19:00 20:30 1.50 TRIP DP TA NDSP PJSM; POOH f/2932' -250' 20.30 21:00 0.50 TRIP DP TA NDSP PJSM; Pull rotating hd.and stand back wash pipe. www.peloton.com Report Printed: 9/18./2008 • • ��jj Marathon Operations Summary Report N �I _ Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 21:00 21:30 0.50 PULD BHA TA NDSP PJSM; Make up overshot and agitator 21:30 01:30 4.00 TRIP DP TA NDSP Cont.RIH w/ 2 1/16 pipe. 01:30 02:00 0.50 WSHOVR FISH TA NDSP PJSM; Rig up circ. swivel, Work overshot over fish, to 6150'. Pick up, no over pull.Pick up 30' , go down fish tagged 15' high. Up wt. =42K Dn wt. =37 Mud Visc. =43. No gains No losses. 02:00 06:00 4.00 TRIP DP TA NDSP PJSM; POOH w/ Overshot, pull slow for fish. Daily Operations Report Date: 9/4/2008 Job Category: COMPLETION 24 Hr Summary POOH, UD 211.64' 1 3/4 coil, TOF @6491', P/U Motor RIH w/2.70 Burn shoe, Wash f/6403 -6491' CBU spot LCM pill, POOH, Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TRIP TOOL TA NDSP Continue POH with overshot with coil tubing fish. Pull rotating head bearing and lay down. No gain/ loss 08:00 10:30 2.50 PULD TBG TA NDSP PJSM;Set dog collar clamp and coil tubing clamp on top of recovered fish. P/U on coil tubing fish and make cut 32' cuts with air saw . Recovered 211.64' of 1 3/4 coil tubing fish. Bottom of fish showed cut lip of 2.2J3 od. 10:30 14:00 3.50 TRIP TOOL TA NDSP P/U motor and 2.70 od cut lip guide mill and 4' extension rih to 6403' 14:00 23:00 9.00 WSHOVR FISH TA NDSP PJSM;Pick up swivel wash F/ 6403' -6491' Tight spots at 6424' -6427, 6478'- 6491', try to dress top of fish, not making any hole mill wore out,P00H Up wt. =41 K Dn wt. =36K Pump =50 stks. =1400 psi 63 gpm, No gains No losses 23:00 00:00 1.00 CIRC CFLD TA NDSP PJSM; CBU Spot LCM pill 9.1 #, (19ppb) safe carb.) 25 bbls. 00:00 05:30 5.50 TRIP DP TA NDSP PJSM; POOH with washover shoe.Hole took 2 bbls. over hole fill. 05: 0.50 TRIP DP TA NDSP PJSM; Rig up to run wash pipe and drag shoe. Report Date: 9/5/2008 Job Category: COMPLETION 24 Hr Summary M/U 2.70 drag shoe RIH, Mill TOF @6490'- 6492',P00H,Found, junk iron inside shoe, Wait on 2.70 drag shoe, RIH, Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 13:30 7.50 TRIP TOOL TA NDSP PJSM; Make up 2.7 od Drag shoe and 300' washpipe Set rotating head bearing. Rih to 6470' with 2 1/16 . Make up Tubing swivel 13:30 16:00 2.50 WSHOVR FISH TA NDSP Mill on top of fish f-6490-6491' Up wt.45k 8/0 35k Rt. Wt.40k TO from tong torque gage 600 -1000 fp /lbs. pump 40spm850- 1250psi. De crease pump[ rate to 30spm 850psi due to losses. Work over top of fish f -6490 -6492' No progress after dressing up 1.5' . Work pipe Torque decreased to 500 ft /Ibs increase weight on fish to 7500k1bs with no increase in torque.. Possible junk on top of fish. Attempt to work fish W/0 pumps no progress. Fluid loss to hole 15bbls per hours dynamitic/ no losses static 16:00 19:30 3.50 TRIP TOOL TA NDSP Rig down tubing swivel. Monitor well POH 66492' 19:30 20:00 0.50 TRIP DP TA NDSP PJSM,Puhl rotating hd., stand back wash pipe.Break off shoe, found a piece of coil lodged inside shoe, There was mics. junk inside shoe. 20:00 20:30 0.50 SERVIC RIG AF PJSM; serv. rig and equip. 20:30 00:00 3.50 WAITON OTHR TA NDSP Wait on drag shoe to be built. 00:00 06:00 6.00 TRIP DP TA CPEQ PJSM; Make up 2.70 drag shoe, 300' wash pipe, RIH with 2 1/16" pipe. Report Date: 9/16/2008 Job Category: COMPLETION 24 Hr Summary Wash over fish @6491'-6831, Gas units to 1000 units, wt.up brine to 9.3 #45 visc.,CBU, POOH, LJD shoe /P/U Cutter assy. RIH,tag at 6491', work over fish to 6594', POOH with 3K over string wt. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 WSHOVR FISH TA NDSP Wash over top of fish at 6491'- 6496' 40spm 850psi 45k up wt. 35 s/o wt. Rt wt 40k tq 850 -1000 fp. Fluid loss 10bbls per hr. Mud Weight 8.9+ Vis 45. Gas increased to 500 units 07:00 09:00 2.00 CIRC CFLD TA NDSP Gas increased to 1000 units Close well in and circulate through choke to gas Buster. Gas after separator 156units. Continue circulating and increase Brine weight to 9.3ppg. Check flow well static. Pump at 30spm 700psi. Continue fluid loss to hole at 10bbls per Hr. 09:00 14:00 5.00 WSHOVR FISH TA NDSP Continue washing over fish F- 6496' to 6831' For a total of 368' of coil tubing fish washed over . Circulate B/U every 60'. Bottom out on wash pipe at 6831'. up wt 45k s/o 35 k. Fluid loss to hole 10bbls per hr. Wash without any sand bridges. Brine weight 9.3 Vis 45 www.peloton.com Report Printed: 9/18/2008 4 • . M arathon Operations Summary Report M pTM . Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 14:00 15:00 1.00 CIRC CFLD TA NDSP Circulate and clean up hole Pump 30bb1 Lcm pill. Monitor well,Static no Gain . 10 bbl per hr loss / No loss with pumps off. 15:00 21:30 6.50 TRIP TOOL TA NDSP Monitor well Static no losses. Poh f 6831' with wash pipe and drag shoe asst' lay down shoe, 25% wear on shoe. 21:30 22:30 1.00 PULD BHA TA NDSP PJSM; Make up cutter assy., and run 552' of washpipe. 22:30 03:00 4.50 TRIP DP TA NDSP PJSM; Cont. to RIH with 2 1/16 pipe.Tagged top of fish at 6491' 03:00 03:30 0.50 WSHOVR FISH TA NDSP PJSM; Work over fish at 6491'- 6594', swallow 103', Overshot jammed on fish try to work up and down with 5K Could not go down, pick up to shear cutter, would not overpull, max. wt pulled 3K.Up wt.42K Dn wt.= 37K,POOH with string wt.45K 03:30 06:00 2.50 TRIP DP TA NDSP PJSM; POOH with cutter and wash pipe. Daily Operations Report Date: 911/2008 Job Category: COMPLETION 24 Hr Summary POOH,Redress cutter RIH,Could not get over fish, POOH,Pick up 2.70 drag shoe ,cutter wash pipe,RIH Ops Trouble 1 Start Time End Time Our (hrs) Ops Code Activity Code Status Code Comment L- 06:00 10:30 4.50 TRIP TOOL TA NDSP POH, Pull rotating head bearing. Stand back wash pipe. No recovery of fish. Grapple was not packed off. No gain loss . Correct hole fill 10:30 16:00 5.50 TRIP TOOL TA NDSP Re Dress Grapple and 2.7 "od overshot/ Cutter. P/U wash pipe Install rotating head bushing RIH with 2 1/16 tubing. Circulate at 6491' No increase in pressure, Appears fish dropped down hole. continue RIH to 6590' Circulate 16:00 19:00 3.00 WSHOVR FISH TA NDSP PJSM; Make up circ hd.wash 66590' -6831' Tagged up at 6831' try to work over fish.Rotate and circ.still not able to go over fish 19:00 00:30 5.50 TRIP DP TA NDSP PJSM; POOH wf2 1/16 pipe. 00:30 01:30 1.00 PULD BHA TA NDSP PJSM; Lay down cutter, pick up 2.70 drag shoe one joint wash pipe and cutter, RIH with wash pipe. 01:30 06:00 4.50 TRIP DP TA NDSP PJSM; RIH with 2 1/16 pipe. Report Date: 9/8/2008 Job Category: COMPLETION 24 Hr Summary RIH, Wash down f/7093'- 7597',POOH, LJD rotating hd.,Remove fish from overshot Retrieved 561' fish , LJD Fish, Test ROPE. Ops Trouble Start Time End Time Dur (hrs) Ops Code Activity Code Status Code Comment 06:00 07:00 1.00 TRIP TOOL TA NDSP Continue RIH to 6800' No Gain Loss 07:00 12:00 5.00 WSHOVR FISH TA NDSP Make up swivel P/U singles and wash f 6800 -6831' Tag top of fish at 6831'. Mill on top of fish Pump 20spm 700psi. Tq 500 -800 f /Ibs. After .5 Torque dropped off to 400 -500 f /Ibs No change in pump pressure. Up wt. 45k1b Dn Wt. 37k1b.Fish dropped down hole,Continue washing down to 7093' At 7093' tagged top of fish, pump pressure increase to 775psi , continue washing down , as top offish entered grapple pressure increased to 850psi Confirmed washing over fish. Wash from 7093' to 7597' at 7597 began stacking out weight. Total fish washed over 504'. P/U weight incresed to 50/52k1b. No Gain Loss Max gas 26units. 12:00 17:30 5.50 TRIP TOOL TA NDSP Monitor well POH from 7597'- 568' Remove rotating head bearing No gain /Loss 17:30 22:00 4.50 PULD TBG TA NDSP Lay down wash pipe. Fish caught in grapple and drag shoe. Hold PJSM discuss JSA and hazards with cutting and laying coil tubing fish. Cut and lay down recovered coil tubing fish. Cut tubing in 40' lenghts and lay down :Lott recovered 561' (100 % of coil tubing recovered L. 22:00 06:00 8.00 TEST BOPE AF PJSM: Set TWC Test BOPand all components 250/5000 10 Min. Test flow , PVT and Gas alarms. Peform accumlator drawn test. Witness waved Bob Noble AOGCC 877/08. Called Tim Lawlor BLM 8/7/08. Note Repair #4 valve on choke Manfold and retest. Test Rotating head 250/1500psi 10min Report Date: 9/9.2008 Job Category: COMPLETION 24 Hr Summary Pull two way check,Make up 2.70 shoe RIH tf3615', Safety Meeting, RIHF/3615- 7683', CBU Lost 30 bbls. hr., Displace w/ 9.3# KCL, followed by Enzme X, across perfs, POOH 30 stds., Lay down pipe f /5803,Losses down to 10 BPH Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 08:00 2.00 TEST BOPE AF Pull Two way check. test top drive valves Re test #4 choke valve. Lay down test joint 08:00 11:30 3.50 TRIP TOOL AF Make up 2.7' od drag shoe and crosssover Rih with 2 1/16 tubing to 1000' Set rotating head bearing. Continue RIH to 3615' www.peloton.com Report Printed: 9/18/2008 • • ii'' Marathon Operations Summary Report M „ Oil Company Well Name: KENAI BELUGA UNIT 42 -7 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 11:30 12:00 0.50 SAFETY MTG AF Hold safety meeting with new crew ( crew change day). Dicuss hole conditions, Handling 2 1/16 tubing and reverse circulating out gas. 12:00 18:00 6.00 TRIP TOOL AF Continue RIH f- 3615'- 7176'. R/U tubing swivel and wash f 7176 -7237' Continue rih f- 7237'- 7580' Wash from 7583' To 7691, Rotate with tubing tongs f 7591 -7601 Clean up tight spot. Continue washing f- 7601' to 7683' Stop washing down hit bridge or junk Pump at 33spm 750psi 1 bbl per min. Hole packed off psi increased to 1195psi. 18:00 20:30 2.50 CIRC CFLD AF PJSM; Circ. bottoms up, lost circ. spot G- seal,pick up and wait 20 mins.Circ. returned. Cont. to displace well with 9.3# KCL, Follow with Enzyme X, Lay across perf intervals and let soak, Well losing 10 BPH. Static.Lost total of 135 �pbls. Reduce pump rete to 20spm 475psi. 20:30 23:00 2.50 TRIP DP AF PJSM; POOH F/7683 5803', Stand back 30 stds. Up wt. =49K Dn wt. =40K Well losses 10 BPH 23:00 06:00 7.00 PULD DP AF PJSM; Rig up and start laying down 2 1/16 pipe. F/5803' Losses at 3 BPH Daily Operations Report Date: 9/10/2008 Job Category: COMPLETION 24 Hr Summary Cont, lay down 2 1/16 pipe, R/D tubing tongs. Clear floor, N/D BOPE, N/U Tree ,Test to 10000 psi 10 min., install back pressure valve, R/D GD -1 Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 10:00 4.00 PULD TBG AF Continue to lay down 2 1/16 tubing Note Flush out with H2o. Note No losses to hole static. Complete L/D tubing from hole . Pull Rotating head bearing Monitor well 30min No losses. Set Back pressure valve., Continue LID tubing from Mast 30 stands Note found last 5jts plugged with sand and junk. Recovered 1.5 to 2 #junk inside if drag shoe 10:00 11:30 1.50 RURD CSG AF R/D Tubing tongs and tools Clean clear rig floor. Load tools and tubing.. R/D rotating head control panel and load out. Clean pits Flush out lines 11:30 21:00 9.50 NUND ROPE AF PJSM; Nipple down Rotating Head and 7 1/16 BOP stack. Clean pits 21:00 00:00 3.00 NUND TREE AF PJSM :Nipple up tree. Pull BPV, install two way check, test tree to 10000 for 10 min., pull two way check install BPV. Complete cleaning pits. 00:00 06:00 6.00 RURD RIG AF PJSM; Start Rig Down GD -1 @ 00:00 hrs. R/D top drive. Split pits. Pull service lines. Complete load out of all rental tools. Report Date: 9/112008 Job Category: COMPLETION 24 Hr Summary Bolt up flow lines to tree, SSV, reset grating around tree, remove back pressure valve, set flowback tanks, rig up flow back iron Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment L. 08:00 13:30 5.50 INSTAL SEQP AF Udelhoven to rig up gas sales flowlines to wellhead 13:30 17:30 4.00 INSTAL LINE AF Vetco removed back pressure valve. ASRC rigged up Arctic Iron flowback equipment 17:30 18:00 0.50 SECURE WELL AF secured well for evening Report Date: 9/14/2008 Job Category: COMPLETION 24 Hr Summary modify flow back iron, blow down 30# wellhead pressure, shoot fluid level (480 feet from surface), rig up BJ services coiled tubing unit, hold PJSM, secure wellhead for evening when crane broke down. Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 06:00 06:30 0.50 SAFETY MTG AF PJSM - Coiled tubing to jet well in. Safety topics included overhead loads, pressure tests limits, 200# low, 4000# high, muster points, simultaneous operations, construction operations of KDU 9, active gas production pad, red lights, blue lights, sirens, shut down procedures, smoking areas, rain, mud, 3 second rule, buddy plan, noise limits 06:30 07:30 1.00 BLOWDN CSG CS 30# on wellhead. Blow down to flowback tank. Well dead within 5 minutes. Fluid level very near surface with very little well bore storage 07:30 08:30 1.00 INSPCT WLHD AF Echometer test by Pollard wireline to determine rluia levet''Fluid level is 480 feet from surface 08:30 14:30 6.00 RURD COIL AF Mobilize CTU unit, spot equipment start rig up, prepare for BOP test. 14:30 15:00 0.50 SECURE WELL CS Secure wellhead for evening. Waiting on parts for crane. Report Date: 9/152008 Job Category: COMPLETION 24 Hr Summary install CTU BOP, test - passed, install injector head, perform shell test - passed, leaky swab valve, pump enzyme into formation, wait on orders to jet well in www.peloton.com Report Printed: 9/182008 • • ; : Marathon Operations Summary Report ' ';,.4,-'2., Y ` C ompa n y Well Name: KENAI BELUGA UNIT 42 - 7 =p ; QI� i Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 09:00 09:30 0.50 SAFETY MTG AF PJSM- overhead loads, active gas production pad, muster point, simultaneous operations, 3 second rule, high pressure, red lights, blue lights, sirens etc. 09:30 10:30 1.00 WAITON OTHR CS wait on electricians to FC0 well control instrumentation 10:30 13:45 3.25 TEST ROPE AF CTU BOP test 200# low, 4500# high - passed 13:45 14:30 0.75 RURD COIL AF rig up injector head, perform shell test 200# law, 1000# high - passed 14:30 15:15 0,75 PUMP WTR AF pump 36 BBL KCL to displace enzyme into formation 15:15 15:45 0.50 SECURE WELL CS secure wellhead for evening at request of operations group as they did not have any personnel to watch well overnight if well were to come on. Daily Operations Report Date: 9/16/2008 Job Category: COMPLETION 24 Hr Summary Jet well in with N2, flow back to tanks, turn over to production Ops Trouble 1 Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 07:00 07:45 0.75 SAFETY MTG AF PJSM - topics - overhead loads, high pressure, muster point, active gas production pad, red lights , blue lights, sirens, simultaneous operations, flowback isssues 07:45 08:45 1.00 RURD COIL AF rig up injector head, shell test 200# low, 1000 # high - passed 08:45 11:00 2.25 RUNPUL COIL AF run in hole w/ coiled tubing - running rate 60 ft/min, N2 rate 410 scf/min 11:00 12:00 1.00 RUNPUL COIL AF depth in hole -5600 fet, tubing rate 19 ft / min, N2 rate 720 scf /min, whp - 202, pump P 1450# some sand returns , fluid 1/4 bpm 12:00 13:00 1.00 RUNPUL COIL AF depth in hole 5653, tubing rate 10 ft / min, N2 rate 807 scf /min, whp - 239 #, pump P 1135 #, fluid returns - 1/4 bpm, some heavy sand returns, increasing N2 rate to 1000 scf /min 13:00 15:30 2.50 RUNPUL COIL AF Reciprocating CT above perforations rate - 14 ft /min, , whp - 350 #, N2 rate 1000 scf / min, pump P 1140# returns - 1/4 BPM 15:30 17:00 1.50 RUNPUL COIL AF start out of hole. Depth 5570 feet, N2 rate 500 scf/ min, whp - 350 #, pump P- 1055 , fluid returns 1/4 bpm 17:00 18:00 1.00 RUNPUL COIL AF rig down CTU, well flow on it own to flow back tanks through gas buster, rigging up to go through sand buster and gas buster 18:00 20:00 2.00 FLOW BACK AF continure flow back, turn gas to sales at 7 pm 20:00 00:45 4.75 FLOW TEST AF continue flow back and monitor sand buster Report Date: 9/17/2008 Job Category: COMPLETION 24 Hr Summary Rig down CTU and turn well over to production Ops Trouble Start Time End Time Dur(hrs) Ops Code Activity Code Status Code Comment 08:00 08:45 0.75 SAFETY MTG AF PJSM - Review rig down operations, overhead loads, spills, leaks, pressure, active gas production pad, red lights , blue lights, sirens, muster areas, simultaineous operations, mud / water 08:45 11:00 2.25 RUNPUL COIL AF ' rig down CTU 11:00 11:30 0.50 SECURE WELL AF secure wellhead above production valves. Well has been turned over to production www.peloton.com Report Printed: 9/18/2008 wal Company: Marathon Joh.1 Calculation Method: Minimum Curvature RR Fwd; Kenai Gas Field Magnefie Deci.;, 18.86° Proposect Azimuth: 210.64° BuN Borough Kenai Peninsula rr.: a f)epth Reference `. ' RK B I N TEQ Well Name: KBU 42 -7rd Total Su Corr.: 1188.86° Tie Surface IT : Glacier#1 et Info: Tool Survey Inc' Azimuth Course TVD VS Coordinates Closure DLS Build Rate Walk Rate Tool No. Type Depth (ft) ( °) ( °) Lgth (ft) (ft) (ft) N/S (ft) E/W (ft) Dist (ft) Ang ( °) ( °/100') ( °/100') (° /100') Face 1 Tie in 0 0.00 0.00 0 0.00 2 MWD 181 0.55 330.10 181 181.00 -0.75 0.75 N 0.43 W 0.87 0.30 0.30 182.38 • 3 MWD 284 0.31 256.60 103 283.99 -0.48 1.12 N 0.95 W 1.47 319.61 0.53 -0.23 -71.36 4 MWD 404 2.59 208.40 120 403.95 2.46 1.34 S 2.56 W 2.89 242.27 2.00 1.90 -40.17 54 L 5 MWD 524 5.24 199.20 120 523.66 10.54 8.90 S 5.65 W 10.55 212.39 2.26 2.21 -7.67 18 L 6 MWD 613 6.96 197.40 89 612.15 19.77 17.89 S 8.60 W 19.85 205.67 1.94 1.93 -2.02 7 L 7 MWD 704 ; 8.26 187.40 91 702.35 31.15 29.63 S 11.09 W 31.64 200.52 2.03 1.43 -10.99 51 L 8 MWD 825 8.76 167.60 121 822.05 45.87 47.26 S 10.23 W 48.35 192.21 2.44 0.41 -16.36 90 L 9 MWD 952 8.50 150.10 127 947.63 57.56 64.84 S 3.47 W 64.93 183.07 2.07 -0.20 -13.78 104 L 10 MWD 1074 8.44 135.60 122 1068.31 64.30 79.06 S 7.29 E 79.39 174.73 1.75 -0.05 -11.89 99 L 11 MWD 1170 8.50 135.80 96 1163.27 67.98 89.18 S 17.16 E 90.81 169.11 0.07 0.06 0.21 26 R 12 MWD 1293 9.07 131.10 123 1284.83 , 72.12 102.07 S 30.81 E 106.61 163.20 0.74 0.46 -3.82 54 L 13 MWD 1421 9.93 135.90 128 1411.07 76.85 116.62 S 46.09 E 125.40 158.44 0.91 0.67 3.75 45 R 14 MWD 1513 10.90 139.40 92 1501.55 81.74 128.93 S 57.27 E 141.07 156.05 1.26 1.05 3.80 35 R • 15 MWD 1610 13.04 136.80 97 1596.44 87.73 143.87 S 70.73 E 160.32 153.82 2.27 2.21 -2.68 0 L 16 MWD 1706 14.07 143.80 96 1689.77 95.34 161.18 S 85.04 E 182.24 152.18 2.02 1.07 7.29 61 R 17 MWD 1806 14.81 148.10 100 1786.61 106.01 181.84 S 98.97 E 207.03 151.44 1.30 0.74 4.30 57 R 18 MWD 1899 15.86 148.00 93 1876.30 117.33 202.71 S 111.99 E 231.59 151.08 1.13 1.13 -0.11 1 L 19 MWD 2024 17.81 148.90 125 1995.94 134.24 233.57 S 130.92 E 267.75 150.73 1.57 1.56 0.72 8 R 20 MWD 2151 20.21 149.60 127 2116.00 154.06 269.12 S 152.05 E 309.11 150.53 1.90 1.89 0.55 6 R 21 MWD 2275 22.33 149.50 124 2231.55 175.80 307.90 S 174.85 E 354.08 150.41 1.71 1.71 -0.08 1 L 22 MWD 2401 23.99 146.80 126 2347.40 198.65 349.96 S 201.03 E 403.59 150.13 1.56 1.32 -2.14 34 L 23 MWD 2528 26.02 148.70 ' 127 2462.49 223.14 395.37 S 229.64 E 457.22 149.85 1.72 1.60 1.50 22 R 24 MWD 2590 26.00 145.90 62 2518.21 235.34 418.24 S 244.32 E 484.38 149.71 1.98 -0.03 -4.52 92 L 25 MWD 2717 26.15 148.20 127 2632.29 260.16 465.08 S 274.68 E 540.14 149.43 0.80 0.12 1.81 83 R 26 MWD 2841 25.89 147.40 124 2743.72 284.99 511.11 S 303.66 E 594.51 149.28 0.35 -0.21 -0.65 127 L 27 MWD 2935 26.01 147.10 94 2828.24 303.42 545.71 S 325.91 E 635.62 149.15 0.19 0.13 -0.32 48 L 28 MWD 3028 26.31 148.60 93 2911.72 322.17 580.42 S 347.73 E 676.61 149.07 0.78 0.32 1.61 66 R 29 MWD 3091 26.19 146.70 63 2968.22 334.82 603.96 S 362.64 E 704.46 149.02 1.35 -0.19 -3.02 99 L • 30 MWD 3124 25.94 147.50 33 2997.86 341.28 616.13 S 370.51 E 718.95 148.98 1.31 -0.76 2.42 126 R 31 MWD 3218 26.18 148.60 94 3082.31 360.29 651.17 S 392.36 E 760.24 148.93 0.57 0.26 1.17 64 R 32 MWD 3340 25.61 151.50 122 3192.06 386.44 697.31 S 418.97 E 813.50 149.00 1.14 -0.47 2.38 116 R 33 MWD 3403 25.92 151.50 63 3248.80 400.48 721.38 S 432.03 E 840.86 149.08 0.49 0.49 0.00 0 L 34 MWD 3530 25.86 150.60 ` 127 3363.05 428.55 769.90 S 458.87 E 896.28 149.20 0.31 -0.05 -0.71 99 L 35 MWD 3593 26.09 151.30 63 3419.69 442.48 794.03 S 472.27 E 923.86 149.26 0.61 0.37 1.11 53 R 36 MWD 3657 25.86 151.30 _ 64 3477.23 456.77 818.61 S 485.73 E 951.87 149.32 0.36 -0.36 0.00 ### ## 37 MWD 3752 25.77 151.00 95 3562.74 477.78 854.85 S 505.69 E 993.22 149.39 0.17 -0.09 -0.32 125 L 38 MWD 3846 25.35 150.20 94 3647.55 498.03 890.18 S 525.60 E 1033.77 149.44 0.58 -0.45 -0.85 141 L 39 MWD 3910 24.96 152.20 64 3705.48 511.86 914.02 S 538.71 E 1060.96 149.49 1.46 -0.61 3.13 116 R 40 MWD 3973 24.61 151.10 63 3762.67 525.47 937.26 S 551.25 E 1087.35 149.54 0.92 -0.56 -1.75 128 L 41 MWD 4034 24.03 150.20 61 3818.26 538.03 959.16 S 563.56 E 1112.46 149.56 1.13 -0.95 -1.48 148 L • 42 MWD 4077 23.68 150.27 43 3857.59 546.62 974.25 S 572.19 E 1129.85 149.57 0.83 -0.82 0.16 176 R 43 MWD 4277 28.02 163.95 200 4037.70 598.77 1054.38 S 605.14 E 1215.69 150.15 3.68 2.17 6.84 60 R 44 MWD 4341 28.26 167.11 64 4094.13 620.07 1083.60 S 612.68 E 1244.81 150.52 2.36 0.38 4.94 82 R 45 MWD 4404 27.51 171.17 63 4149.82 642.11 1112.51 S 618.24 E 1272.76 150.94 3.24 -1.19 6.44 113 R 46 MWD 4467 25.91 177.97 63 4206.11 664.94 1140.66 S 620.96 E 1298.73 151.44 5.47 -2.54 10.79 121 R 47 MWD 4531 25.66 182.73 64 4263.75 688.96 1168.47 S 620.79 E 1323.15 152.02 3.26 -0.39 7.44 99 R 48 MWD 4595 26.14 188.15 64 4321.33 714.23 1196.28 S 618.13 E 1346.54 152.67 3.77 0.75 8.47 81 R • 49 MWD 4658 ? 25.24 192.70 63 4378.10 739.84 1223.12 S 613.21 E 1368.23 153.37 3.44 -1.43 7.22 117 R 50 MWD 4721 24.81 196.13 63 4435.19 765.41 1248.92 S 606.59 E 1388.44 154.09 2.40 -0.68 5.44 108 R 51 MWD 4782 25.84 201.93 61 4490.34 790.95 1273.55 S 598.07 E 1406.99 154.85 4.40 1.69 9.51 70 R 52 MWD 4845 25.86 205.51 63 4547.04 818.21 1298.69 S 587.02 E 1425.20 155.68 2.48 0.03 5.68 91 R 53 MWD 4909 ' 25.32 213.71 `, 64 4604.78 845.78 1322.68 S 573.41 E 1441.62 156.56 5.59 -0.84 12.81 102 R 54 MWD 4972 23.84 221.18 63 4662.08 871.76 1343.47 S 557.55 E 1454.57 157.46 5.46 -2.35 11.86 119 R 55 MWD 5035 22.84 224.82 63 4719.93 896.13 1361.73 S 540.54 E 1465.09 158.35 2.78 -1.59 5.78 126 R 56 MWD 5097 22.27 224.81 62 4777.19 919.19 1378.60 S 523.78 E 1474.75 159.20 0.92 -0.92 -0.02 180 L • 57 MWD 5158 19.71 226.61 61 4834.13 940.29 1393.87 S 508.16 E 1483.61 159.97 4.33 -4.20 2.95 167 R 58 MWD 5221 17.51 228.24 63 4893.84 959.54 1407.48 S 493.37 E 1491.45 160.68 3.59 -3.49 2.59 167 R 59 MWD 5285 15.75 227.98 ' 64 4955.16 977.01 1419.71 S 479.73 E 1498.57 161.33 2.75 -2.75 -0.41 178 L 60 MWD 5350 14.57 225.78 65 5017.90 993.32 1431.32 S 467.32 E 1505.67 161.92 2.02 -1.82 -3.38 155 L 61 MWD 5413 12.59 223.65 63 5079.13 1007.66 1441.81 S 456.90 E 1512.48 162.42 3.24 -3.14 -3.38 167 L 62 MWD 5476 10.75 224.53 63 5140.83 1020.06 1450.97 S 448.04 E 1518.57 162.84 2.93 -2.92 1.40 175 R 63 MWD 5539 9.05 225.38 63 5202.89 1030.55 1458.64 S 440.39 E 1523.67 163.20 2.71 -2.70 1.35 176 R 64 MWD 5602 6.97 227.27 63 5265.27 1039.01 1464.72 S 434.05 E 1527.68 163.49 3.33 -3.30 3.00 174 R 65 MWD 5665 4.62 227.13 63 5327.94 1045.11 1469.04 S 429.38 E 1530.50 163.71 3.73 -3.73 -0.22 180 L 66 MWD 5728 2.65 229.94 63 5390.81 1048.91 1471.70 S 426.41 E 1532.23 163.84 3.14 -3.13 4.46 176 R 67 MWD 5791 1.61 247.08 63 5453.77 1051.00 1472.98 S 424.48 E 1532.93 163.92 1.92 -1.65 27.21 157 R 68 MWD 5854 1.18 285.54 63 5516.75 1051.88 1473.15 S 423.04 E 1532.69 163.98 1.59 -0.68 61.05 133 R • 69 MWD 5917 1.13 287.05 63 5579.74 1052.20 1472.80 S 421.82 E 1532.01 164.02 0.09 -0.08 2.40 149 R 70 MWD 5980 1.45 275.72 63 5642.72 1052.68 1472.54 S 420.43 E 1531.38 164.07 0.65 0.51 -17.98 44 L 71 MWD 6042 1.54 273.06 62 5704.70 1053.39 1472.41 S 418.82 E 1530.82 164.12 0.18 0.15 -4.29 39 L 72 MWD 6105 1.62 260.35 63 5767.68 1054.36 1472.52 S 417.10 E 1530.45 164.18 0.57 0.13 -20.17 84 L 73 MWD 6168 1.55 261.18 63 5830.65 1055.48 1472.80 S 415.38 , E 1530.25 164.25 0.12 -0.11 1.32 162 R 74 MWD 6232 1.67 263.13 64 5894.63 1056.60 1473.04 S 413.60 E 1530.00 164.32 0.21 0.19 3.05 26 R 75 MWD 6295 1.69 264.97 63 5957.60 1057.70 1473.23 S 411.76 E 1529.69 164.38 0.09 0.03 2.92 71 R 76 MWD 6358 1.72 263.37 63 6020.57 1058.81 1473.42 S 409.90 E 1529.38 164.45 0.09 0.05 -2.54 59 L 77 MWD 6421 1.65 250.39 63 6083.55 1060.08 1473.84 S 408.10 E 1529.29 164.52 0.61 -0.11 -20.60 107 L 78 MWD 6483 1.54 235.68 62 6145.52 1061.52 1474.61 S 406.57 E 1529.63 164.59 0.68 -0.18 -23.73 112 L 79 MWD 6546 1.52 236.62 63 6208.50 1063.04 1475.54 S 405.18 E 1530.16 164.65 0.05 -0.03 1.49 129 R 80 MWD 6609 1.40 241.85 63 6271.48 1064.45 1476.37 S 403.80 E 1530.59 164.70 0.28 -0.19 8.30 135 R 81 MWD 6672 1.54 239.26 63 6334.46 1065.85 1477.16 S 402.39 E 1530.99 164.76 0.25 0.22 -4.11 27 L 82 MWD 6735 1.32 234.87 63 6397.44 1067.26 1478.01 S 401.07 E 1531.46 164.82 0.39 -0.35 -6.97 156 L 83 MWD 6798 1.38 234.47 63 6460.42 1068.61 1478.87 S 399.86 " E 1531.97 164.87 0.10 0.10 -0.63 9 L • 84 MWD 6862 1.26 234.77 64 6524.40 1069.96 1479.72 S 398.66 E 1532.49 164.92 0.19 -0.19 0.47 177 R 85 MWD 6925 1.14 234.97 63 6587.39 1071.16 1480.48 S 397.58 E 1532.94 164.97 0.19 -0.19 0.32 178 R 86 MWD 6988 1.26 238.27 63 6650.38 1072.35 1481.21 S 396.48 E 1533.35 165.01 0.22 0.19 5.24 32 R 87 MWD 7052 1.02 239.89 64 6714.36 1073.47 1481.86 S 395.39 E 1533.70 165.06 0.38 -0.38 2.53 " 173 R 88 MWD 7115 0.95 238.15 63 6777.35 1074.42 1482.42 S 394.46 E 1534.00 165.10 0.12 -0.11 -2.76 158 L 89 MWD 7177 0.89 249.92 62 6839.35 1075.25 1482.86 S 393.57 E 1534.20 165.14 0.32 -0.10 18.98 113 R 90 MWD 7240 1.04 246.74 63 6902.34 1076.09 1483.25 S 392.59 E 1534.33 165.17 0.25 0.24 -5.05 21 L 91 MWD 7304 0.99 257.97 64 6966.33 1076.93 1483.59, S 391.51 E 1534.38 165.22 0.32 -0.08 17.55 110 R 92 MWD 7367 0.96 257.18 63 7029.32 1077.67 1483.83 S 390.46 E 1534.34 165.26 0.05 -0.05 -1.25 156 L 93 MWD 7429 0.94 250.60 62 7091.31 1078.41 1484.11 S 389.48 E 1534.36 165.30 0.18 -0.03 -10.61 104 L 94 MWD 7492 1.00 247.77 63 7154.30 1079.25 1484.49 S 388.48 E 1534.48 165.33 0.12 0.10 -4.49 40 L 95 MWD 7555 1.00 236.67 ' 63 7217.29 1080.18 1485.00 S 387.51 E 1534.73 165.37 0.31 0.00 -17.62 96 L • 96 MWD 7617 1.08 242.23 62 7279.28 1081.16 1485.57 S 386.54 E 1535.03 165.42 0.21 0.13 8.97 54 R 97 MWD 7680 0.93 237.77 63 7342.27 1082.12 1486.12 S 385.59 E 1535.33 165.45 0.27 -0.24 -7.08 155 L 98 MWD 7743 0.89 249.56 ! 63 7405.26 1082.96 1486.56 S 384.70 E 1535.53 165.49 0.30 -0.06 18.71 108 R 99 MWD 7806 0.94 245.66 63 7468.25 1083.76 1486.95 S 383.77 E 1535.67 165.53 0.13 0.08 -6.19 53 L 100 MWD 7869 0.89 252.26 63 7531.25 1084.55 1487.31 S 382.83 E 1535.79 165.57 0.19 -0.08 10.48 119 R Projection 7926 ' 0.89 _ 252.26 57 _ 7588.24 1085.21 1487.58 S 381.99 E _ 1535.84 _ 165.60 0.00 0.00 _ 0.00 L II • • Marathon Oil Company Alaska Asset Team / M\ Marathon P.O. Box 1949 Kenai, AK 99611 MAR ATHON Oil Company Telephone 907/283 -1371 Fax 907/283 -1350 October 16, 2008 Mr. Tom Maunder OCT 9 Alaska Oil & Gas Conservation Commission Alaska ' 0 200 333 W 7 Ave a Oil & 6 ' co Anchorage, Alaska 99501 Aix'' ' o m'`nissio Reference: 10 -421 Gas Well Open Flow Potential Test Report Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -7RD Dear Mr. Maunder: Enclosed for your records is the Gas Well Open Flow Potential Test Report, 10 -421, for KBU 42 -7RD well. The information provided in this report is based on a one point test. A four point test could be not obtained, on this well, because it is flowing at pipeline pressure and operating at it's unload rate. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, . Kevin J. Skiba Engineering Technician Enclosures: 10 -421 Open Flow Report cc: Houston Well File Kenai Well File KJS STATE OF ALASKA i1, /GI ALAS OIL AND GAS CONSERVATION COMM ION 4-4)/4- GAS WELL OPEN FLOW POTENTIAL TEST REPOR 0 zoo8 la. Test: Lf Initial H Annual Li Special lb. Type Test: H Stabilized U wcia§ i c} C 2;. Multipoint ❑ Constant Time El Isochronal 0 Other OAS C07isS 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company 5/27/2008 208 -052 3. Address: 6. Date TD Reached: 12. API Number: PO BOX 1949 Kenai, Alaska 99611 -1949 04/26/2008 50 -133- 20488 -01 -00 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 3T FNL, 4,118' FWL, Sec. 7, T4N, R11W, S.M. 87' above MSL (21' KB AGL) Kenai Beluga Unit 42 -7RD Top of Productive Horizon: 8. Plug Back Depth(MD +TVD): 14. Field /Pool(s): 1,393' FNL, 518' FEL, Sec. 7, T4N, R11W, S.M. 7,833' MD + 7,495' TVD Total Depth: 9. Total Depth (MD + TVD): Kenai Gas Field / Beluga & Tyonek Formations 1,414' FNL, 558' FEL, Sec. 7, T4N, R11W, S.M. 7,926' MD + 7,588' TVD 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: Surface: x- 275,022.43 Y 2,361,975.39 Zone- 4 A- 028142 TPI: x- 275,422.00 Y 2,360,497.00 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 275,378.00 Y 2,360,480.00 Zone- 4 Excape Completion Process (Multi -Zone, Frac Stimulated) 17. Casing Size Weight per foot, lb. I.D. in inches Set at ft. 19. Perforations: From To 3.500" 9.3 ppf, L - 2.992" 7,901' MD 5,726' - 5,736', 5,773' - 5,783', 5,956' - 5,966', 6,023' - 6,033', 6,203' - 6,213', 6,402' - 6,412', 6,492' - 6,502', 6,591' - 6,601', 6,842' - 6,852', 18. Tubing Size Weight per foot, lb. I.D. in inches Set at ft. 7,040' - 7,050', 7,093' - 7,103', 7,247' - 7,257', 7,318' - 7,328', 7,404' - 3.500" 9.3 ppf, L - 2.992" 7,901' MD 7,414', 7,480' - 7,490, 7,552' - 7,562', 7,593' - 7,603' 20. Packer set at ft: 21. GOR cf /bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): NA - - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ❑ Tubing 0 Casing 131.5 F° 635 psia @ Datum 7756 TVDSS 14.73 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO % N2: % H2S: Prover: Meter Run: Taps: 5,705' MD 5,367' TVD 0.56 0.324 0.175 0 Facility 26. FLOW DATA TUBING DATA CASING DATA Prover Choke Pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow No. Line )( Orifice psig Hw F psig F° psig F° Hr. Size (in.) Size (in.) 1. 3.826 X 1.000 543 25.81 64 - - - - 185.00 2. X 0.00 3. X 0.00 4. X 0.00 5. X Basic Coefficient Flow Temp. Super Comp. � Pressure Gravity Factor Rate of Flow No. (24 -Hour) by w Pm Factor F Factor (� Mcfd Fb or Fp Ft 9 Fpv 1. 80.45698673 40.643 557.73 1.00 1.336 1.0398 3,270 2. 0 3. 0 4. 0 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 0.83 524 1.53 0.925 0.56 NA 2. 3. Critical Pressure 673.1 4. Critical Temperature 343.2 5. Form 10 -421 Revised 1/2004 CONTINUED ON REVERSE SIDE Submit in Duplicate ' -- I FL O 2 ' ' i Pd 1183 p0 2 1 1 39 8661 . 023 1 0 0 Pf No. Pt Pt Pc Pw Pw Pc Ps Ps Pf -Ps 1. 558 310,973.5 2. 3. 4. 5. 0 25. AOF (Mcfd) 4,204 n 1.000 Remarks: Excape well. Well not shut -in during test. SIWHP using SIWHP observed in KBU 43 -7x (14- May -2008) I hereby certify that the foregoing is e and correct to the best of my knowledge. Signed Title Senior Completions Engineer Date 10/16/2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ hwPm Fp Basic critical flow prover or positive choke factor Mcfd /psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= •dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air= 1.000), dimensionless Gg Specific gravity of separator gas (air= 1.00), dimensionless GOR Gas -oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back - pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut -in wellhead pressure, psia Pf Shut -in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless for tests and calculations may procedures y be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10 -421 Revised 1/2004 Side 2 Page 1 of l • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, August 08, 2008 7:43 AM To: 'Eynon, Don' Cc: Berga, Pete; Tank, Will; Rang, Craig L.; Miller, Nick; Skiba, Kevin J. Subject: RE: KBU 42 -7RD (208 -052) Don, Thanks for the update. Good luck with the work. I will place a copy of this message in the file. Tom Maunder, PE AOGCC From: Eynon, Don [ mailto:deeynon @marathonoil.com] Sent: Thursday, August 07, 2008 3:54 PM To: Maunder, Thomas E (DOA) Cc: Berga, Pete; Tank, Will; Rang, Craig L.; Miller, Nick; Skiba, Kevin J. Subject: RE: KBU 42 -7RD (208 -052) Tom, The rig has reviewed the heights required to install the rotating head and confirmed we can install a single and double ram to give us a two - 2 1/16" pipe ram configuration. I have attached the revised BOP schematic that depicts the 7 1/16" BOP configuration. This will negate the need for an exception to 20 AAC 25.285. Let me know if you have any questions or concerns. Thanks, Regards, Don Eynon Completion Engineer Marathon Oil Company Office: 713- 296 -3265 Cell: 713 -408 -1336 Fax: 713- 293 -3970 Email: DEEynon ©MarathonOil.com From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Monday, August 04, 2008 11:03 AM To: Eynon, Don; Skiba, Kevin J. Cc: Berga, Pete; Tank, Will; Rang, Craig L.; Miller, Nick Subject: RE: KBU 42 -7RD (208 -052) Thanks Don, I will continue my review. Tom From: Eynon, Don [mailto:deeynon @marathonoil.com] 8/8/2008 Marathon Oil Well KBU 41 -7X BOP Stack Manually Operated / Valve 7-11113", 1500 1000 psi WP -------- Rotating Head, _ —. [iII "' Height, 51 ^ 25 7- 1/16" 5M Annular Preventer ____ 30.88 C • 0 mime 7- 1/16" 5M Double t Ram Preventer (Pipe Ram ��► 20.50 [Blind Ram 1 2 1/16" 5M 21/8 5M Manually „ Manually Operated Operated Valves > < ( I h � �_ _ . ,- — � L 111_ X — X Kill ( (Choke II[©]'"'_ X .—♦. to choke manifold 22.00 17- 1/16" 5M Cross . 3 1/8" 5M Manually 3 1/8" 5M Hydraulically Operated Valve (Pipe Ram ( Operated Valve 11.25 7- 1/16" 5M Single �/► 3 1/8" 5M Manuall l > < I Operated Valves Ram Preventer + Y�I • — _____ � 7 " LIIi ©iII x � _ 15.00 5M by ( f � ` � � 7 17- 1/16" 5M Cross ( 14" 5M by 3" 10M DS [ I I 10.00 1 I 10.00 170.875 Height above Tbg Head Bonnet -- 14.240 ft 33.8125 G/L (inches) to top of Tbg Head Bonnet Height above GL (inches) - - -> 204.6875 inches Height above GL (ft) - - -> 17.06 ft W/ single it ( --, -, ,,,, ( ri= i A r - (:)r 7 r - \ , \ ,,'I-J .\\) 1r- 1L,i , 'N I I, ) SARAH PALIN, GOVERNOR .K . ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 i FAX (907) 276-7542 Donald Eynon Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611-1949 Re: Kenai Gas Field, Beluga & Upper Tyonek Gas Pool, 42 -7rd Sundry Number: 308 -276 Dear Eynon: 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, 1 f Daniel T. Seamount, Jr. Chair DATED this - day of August, 2008 End. D OS _c)sa 1 Page 1 of • Maunder, Thomas E (DOA) From: Eynon, Don [deeynon @marathonoil.com] Sent: Monday, August 04, 2008 6:49 AM To: Maunder, Thomas E (DOA); Skiba, Kevin J. Cc: Bergs, Pete; Tank, Will; Rang, Craig L; Miller, Nick Subject: RE: KBU 42 -7RD (208 -052) Tom, We will be taking the tree off and installing the 7 1/16" BOP due to height limitations with the Glacier 1 substructure, the 3 1/16" 10M flange on the bottom of the BOP drawing is the top of the tubing head adapter. We have located a 7 1/16" rotating head that will be used for reverse circulating only, the reason for the rotating head is with our workstring /wellbore configuration we may have higher friction losses on the annulus than on the workstring. We are using 2 1/16" 4.5 ppf P -110 CS Hydril for the workstring and a short section of 2 -3/8" CS Hydril 4.6 ppf P -110 for wash pipe. The well was sidetracked and drilled to TD with a 9.2 -9.4 ppf Flo -pro water based mud system. ( The Flo -Pro system with additives has a minimum weight of about 9.1 to 9.2 ppg) Just before we TD'd we hit a single sand that is - 10 ppg which caused us to increase mud weight eventually to 10.1 ppg. The EXcape module from 7,593' to 7,603' MDRKB is the interval with - 10 ppg pore pressure. If 10.1 ppg fluid is needed to control pressure due to communication with that bottom interval we are looking at a 10.1 ppg brine based Flo -Pro system to minimize leak off and bridge off at the face of the sand frac, MI is currently testing it and should have results back this week. When cleaning out the well to a depth of 7,047' with CT we had losses circulating 8.7 ppg brine (6% KCL with no fluid loss additives) and then got stuck. The 8.7 -9 ppg brine weight should be sufficient to clean out to 7,047'. We plan to start with 8.7 to 9 ppg (6% KCL with fluid loss additives) and weight up as required to maintain well control at all times. We do not plan to cleanout the well to TD with the Glacier 1 rig, just go as far as 7,047' to recover the CT fish (2), then RDMO and mobilize CT to finish cleaning out frac sand to TD and jet the well in. If you have any other questions please feel free to call or email. Thanks, Don Eynon Completion Engineer Marathon Oil Company Office: 713- 296 -3265 Cell: 713 -408 -1336 Fax: 713 -293 -3970 Email: DEEynon @MarathonOil.com From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Friday, August 01, 2008 7:00 PM To: Eynon, Don; Skiba, Kevin 1 Subject: KBU 42 -7RD (208 -052) Don, I am reviewing the sundry application to recover the CT fish (2) in the well. You have asked for an exception to the requirements of 20 MC 25.285. In looking at your application, if I understand correctly you will be conducting the work with the tree stilt on the well. Is that correct? If so, then 20 MC 25.286 applies and a single pipe ram, blind ram and annular is the requirement for operations with MASP < 5000 psi. Also, could you provide a little more description of the planned operations such as your workstring size and fluid weights? 8/4/2008 I Marathon Oil Company M Marathon Alaska Asset Team P.O. Box 1949 MARATHON Company Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 July 30, 2008 Mr. Dan Seamount A r � Alaska Oil & Gas Conservation Commission � ��` 333 VV 7 Ave a 3 ZOO ZOO Anchorage, Alaska 99501 k� Alaska l W Reference: 10 -403 Sundry Notice Field: Kenai Gas Field Well: Kenai Beluga Unit 42 -7 ReDrill Dear Mr. Seamount: Enclosed please find the 10 -403 Application for Sundry Approvals for KBU 42 -7RD well. Marathon has perforated and fracture stimulated the seventeen KBU 42 -7RD Excape modules and began cleanout operations when 1.75" coiled tubing became stuck in the well. Marathon plans to move the Glacier 1 drilling rig to begin fishing operations to recover the coiled tubing. After successful fishing operations a coiled tubing unit will be re- mobilized for cleanout the remainder of the well and to initiate production. Please contact me at (713) 296 -3265 if you have any questions or need additional information. Sincerely, D zyles._ Don Eynon Completion Engineer Enclosures: 10 -403 Sundry Notice cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS NJM CLR • v 4, . . , „. ± . �,� � I STATE OF ALASKA �.3 4 ALASKA OIL AND GAS CONSERVATION COMMISSION ` -��~ I di b +� V L\ APPLICATION FOR SUNDRY APPRO 4 !L -k 04 20 AAC 25.280 1. Type Re yp e of Request: Abandon ❑ Suspend El Operational shutdown ❑ Perforate ❑ —" 1l Vaiv`er ❑ Other El Alter casing ❑ Repair well m Plug Perforations ❑ Stimulate ❑ Time Extension ❑ Change approved program ❑ Pull TubinPerforate New Pool ❑ Re -enter Suspended Well ❑ 2. Operator Name: n Marathon Oil Company 4. Cufrent Well Class: 5. Permit to Drill Number: p y Development 0 Exploratory ❑ 208 -052 " 3. Address: PO Box 1949 Stratigraphic D Service 0 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20488 -01 -00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes III No El Kenai Beluga Unit 42 -7rd 9. Property Designation: 41 10. KB Elevation (ft): 11. Field /Pool(s): Pao A - 028142 87' - Kenai Gas Field / Beluga & Upper Tyonek Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 7,926' 7,588' 7,833' 7,495' NA NA Casing Length Size MD ND Burst Collapse Structural Conductor 96' 20" 117' 117' 3,060 psi 1,500 psi Surface 1,078' 13 -3/8" 1,099' 1,093' 3,450 psi 1,950 psi Surface 651' 13 -3/8" 1,750' 1,732' 5,380 psi 2,670 psi Intermediate 5,561' 9 -5/8" 5,582' 5,322' 5,750 psi 3,090 psi Production 7,884' 3 -1/2" 7,905 7,567' 10,160 psi 10,540 psi Perforation Depth MD (ft): Perforation Depth ND (ft): Tubing Size: Tubing Grade: Tubing MD (ft): NA NA NA NA NA Packers and SSSV Type: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch 0 Exploratory ❑ Development El Service ❑ 15. Estimated Date for 16. Well Status after proposed work: Operations: August 13 2008 Commencing Oil Ga s g p ❑ el Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Donald E. Eynon Title Completions Engineer Signatures Phone Date (713) 296 -3265 July 30, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ( 9 M3 — a 7/n Plug Integrity El BOP Test ni Mechanical Integrity Test ❑ Location Clearance ❑ ly Other: 5- °'° P'*;* %09 itt,,k cA.-,00.t.AZ, S k t•r\ t V\ 'Oq \ .)L._(.k.,v-k-c„.\o\ Q k r()INb..c.."5", :::11 Subsequent Form Required: k,,, } cxC ; c: �, \ " I Y V � w�F 4,,N ��� c..V 4 c } LCD'` `sC t1 4 7' APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: eve) Form 10 -403 Revised 06/2006 0R I GIN j L RBDIVIS BFL AUG 0 5 2008 Submit in Duplicate Well KBU 42 -7rd Kenai Gas Field Workover to Fish Coiled Tubing July 30, 2008 Summary — Marathon proposes to mobilize the Glacier Rig #1 onto well KBU 42 -7rd in order to fish coiled tubing that is stuck in the wellbore. During post frac cleanout operations with 6% KCL fluid the coiled tubing became stuck. Marathon intends to fully recover the fish, then re- mobilize a coiled tubing unit to cleanout the remaining wellbore and produce the EXcape completion to sales. The rig could be mobilized onto well KBU 42 -7rd as early as August 13, 2008. Marathon recommends a BOP test pressure of 250/5000 psi, which is consistent with the test pressure used during drilling operations. Marathon will submit the required completion notices once the well is successfully placed on production. Marathon is requesting a waiver from 20 ACC 25.285 (c) (2) (B) (i), the regulation requiring 2 pipe rams on wells with a maximum potential surface pressure which is greater than 3,000 psi. We are requesting that the BOP stack be configured with one pipe ram instead of two. This will allow space below the Glacier 1 rig floor for a rotating head to be installed above the annular for reverse circulating over the coiled tubing fish; the rotating head will not be used for well control. Maximum anticipated surface pressure is based off the BHP at the bottom perforated interval TVD. The well was drilled to total depth with 10.1 ppg Flo -pro drilling mud. MASP bh = BHP bottom perf tvd — Hydrostatic pressure of gas MASP bh = (10.0 ppg x .052 x 7,265') — (0.1 psi/ft x 7,265') MASP bh = 3775 psi — 727 psi MASP bh = 3,048 psi MASP = MASP bhp = 3,048 psi Marathon will maintain well control utilizing KC1 or a mixture of NaCl and KC1 brine at 9 to 10.1 ppg with Flo -vis polymer and additives to mitigate fluid losses to the formation. Attachments: • Current wellbore schematic • BOP schematic KBU 42 -7rd BOP 3 1/8" 5M Manually Operated Valve ", 1500 psi Rotating Head, 1000 � LIIiF3iII Height, 51.25 1000 psi WP while rotating .� I I 7- 1/16" 5M Annular Preventer i \ / 30.88 • C I to flowline 7- 1/16" 5M Double Ram t Preventer 'Pipe Ram 20.50 Blind Ram' 2 1/16" 5M 2 1/8" 5M Manually Operated Manually Operated Valves (1 Operated y I X + L X Kill I ICh I II[SII L X j —1, to choke manifold 22.00 i 2 1/16" 5M 7- 1/16" 5M Cross I I I 3 1/8" 5M Manually Check Valve � Operated Valve 10.00 17" 5M by 4" 5M DS \ I 10.00 I • 4 "5M by3 "10MDS 144.625 Height above Tbg Head Bonnet -- 12.052 ft '� f cy"\C..4 ti.k �� ��� cc�N Q 33.8125 G/L (inches) to top of Tbg Head Bonnet 'Height above GL (inches) - - -> 178.4375 inches L., 1 v Height above GL (ft) - - -> 14.87 ft 4 ,, . . 1 0 A ii i Permit #: 208 -052 KBU 42 -7RD API #: 50- 133204880000 Pad 41 -7 Property Des: A - 028142 36'FNL X 889' FEL KB: 21' AGL (87' KB Elevation) X= 275022.43 Sec. 7, T4N, R11 W, S.M. M ARATHON Y= 2361975.39 Lat: 60° 27' 31.782" N 1 ., Long: 151° 14' 54.738" W F. I ,i I Conductor Spud: 09:30 hrs 4/15/2008 20" K-55 133 ppf Tom Bottom TD Reached: 4/26/2008 :,.` MD Surf 117' '� TVD Surf 117' Surface Casing 5 13 -3/8" 68 ppf d ' ++ .. Two Bottom 1.75" OD CT K -55 MD Surf 1,099' - r , perforated 2 shots TVD Surf 1,093' 9 -5/8" Casing Shoe @ 4,094' MD 1 -. ) '- per foot at 180 L -80 MD 1,099 1,750 _ill degrees at: TVD 1,093 1,732 BTC @ 1,750' MD Cmt w/734 sks class G 6020' Intermediate Casing - Window cut 4,094' MD Top of Cement (est.) & 9 -5/8" L -80 40 ppf 2168' above 3.5" shoe Lag Bottom 1,926') - 6300' MD Surf 4,094' (window) CT stuck from TVD Surf 3,873' Excape System Details 6000' to 6486' Top portion of CT - Ceramic flapper valves below Stuck @ 6 t o BTC @ 5,582 Cmt w/ 654 sks class G each module as follows: Modules 66486' 7/8 connected w /flapper below Module 7. Modules 14/15 connected w /flapper CT plugged /bridged Production Tubing below Module 14. Modules 16/17 � at 6,510' 3 -112" L-80 9.3 ppf EUE connected with flapper below Module CT stuck from MD Surf Bottom 16 6486' to 7047' , D Bottom portion of TVD Surf 7563' Flappers MD (RKB): CT stuck @ 6,486 Module 1 - NA t0 7. 047 ' . 8rd with 6.25" OD control line protectors to 7901' Module 2 - 7,565'i RKB. 8 - 1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 Module 3 - 7,492' v BHA consists of ppg lead cmt, 689 sks (142 bbls) 15.8 ppg Class G tail Module 4 - 7,415 `' 1.75" OD nozzle Excape System Details Module 5 - 7,329' ! ' and double flappers. 17 Excape modules placed Module 6 - 7,260' DI t) - Green control line for bottom 5 modules Module 7 - 7,104' - Yellow control line for modules 6 - 11 Module 8 - NA' .. - Red control line for modules 12 - 17 Module 9 - 6,851 �) All modules w/ flappers above module 1 are Module 10 - 6,599' ) disappearing flapper versions. Perfs MD (RKB): Module 11 - 6,501' Module 1 - 7,593 feet - 7,603 feet - - Module 12 - 6,410' Module 2 - 7,552 feet - 7,562 feet Module 13 - 6,213' DI ky, Module 3 - 7,480 feet - 7,490 feet Module 14 - 6,031' fl Module 4 - 7,404 feet - 7,414 feet Module 15 - NA U� 1 Minimum ID 2.813" Module 5 - 7,318 feet - 7,328 feet Module 16 - 5,780' )- X nipple 7' above Module 17 - NA g Module 7 - 7,093 feet - 7,103 feet - . and 2.813" Module 8 - 7,040 feet - 7,050 feet ( olished bore 1' Module 9 - 6,842 feet - 6,852 feet L@PJ ` 1 - p Module 10 - 6,591 feet - 6,601 fe et below each Module 11 - 6,492 feet - 6,502 feet .r - Module 12 - 6,402 feet - 6,412 feet Excape Float Shoe @ 7833' MD r - Module 13 - 6,203 feet - 6,213 feet Module 14 - 6,023 feet - 6,033 feet Module 15 - 5,956 feet - 5,966 feet TD - 7,901' (MD) Module 16 - 5,773 feet - 5,783 feet PBTD - 7,833' (MD) Module 17 - 5,726 feet - 5,736 feet Well Name & Number: KBU 42 -7RD I Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State /Prov:1 Alaska Country:1 USA Perforations (MD): Perf (TVD): Angle /Perfs: Angle @ KOP and Depth: BHP: BHT: 131 Completion Fluid: 6% KCL Dated Completed: Ground Level (MSL): 87 I Prepared By: Craig Rang Last Revison Date: 7/30/08 Don Eynon 7/30/2008 5:15 PM er G ALA VA A ND GAS CONSERVATION ALASKA COM SIR IV S--41---/S-0,448 �,� �1 °` � �1 � AL Y 2008 `J -� ; 5 L 1 2 8 lr3 , 20 AAC 25.280 `�J 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown ❑ pfgafilia 0 & Gas ConsieCOnission Other ❑ Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate EI Thocheragen ❑ Change approved program ❑ Pull Tubing ❑ Perforate New Pool Q Re -enter Suspended Well ❑ 2. Operator Name: n Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: p y Development 0 Exploratory ❑ 208 -052 3. Address: PO Box 1949 Stratigraphic ❑ Service ❑ 6. API Number: Kenai Alaska, 99611 -1949 50- 133 - 20488 -01 -00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Kenai Spacing Exception Required? Yes ❑ No Kenai Beluga Unit 42 -7�� � 3•- 9. Property Designation: 10. KB Elevation (ft): 11. Field / Pool(s): A - 028142 87' Kenai Gas Field / Beluga & Upper Tyonek Pools 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7,926' 7,588' 7,833' 7,495' NA NA Casing Length Size MD TVD Burst Collapse Structural Conductor 96' 20" 117' 117' 3,060 psi 1,500 psi Surface 1,078' 13 -3/8" 1,099' 1,093' 3,450 psi 1,950 psi Surface 651' 13 -3/8" 1,750' 1,732' 5,380 psi 2,670 psi Intermediate 5,561' 9 -5/8" 5,582' 5,322' 5,750 psi 3,090 psi Production 7,884' 3 -1/2" 7,905 7,567' 10,160 psi 10,540 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: Packers and SSSV MD (ft): NA NA 13. Attachments: Description Summary of Proposal ❑ 14. Well Class after proposed work: Detailed Operations Program ell BOP Sketch ❑ Exploratory ❑ Development ell Service ❑ 15. Estimated Date for 16. Well Status after proposed work: May 20, 2008 Commencing Operations: Oil ❑ Gas 0 Plugged ❑ Abandoned ❑ 17. Verbal Approval: Date: WAG ❑ GINJ ❑ WINJ ❑ WDSPL ❑ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba (907) 283 -1371 Printed Name Craig L. Rang Title Senior Completions Engineer Signature Phone (907) 283 -1372 Date May 8, 2008 V COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 _ 1717 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: Aj�� i b h 1 -.. i o° L\- . `J , / APPROVED BY O Approved by: . C M I S IONE THE COMMISSION Date: Si l '1 KIG INAL v s ' b Form 10 -403 Revised 06/2006 AcEiv 1A' 1 2 20(IR KBU 42 -7RD Fracture Stimulation Al C: Cons, Commjssion Desription Summary of Proposal Anchorage Kenai Beluga Unit 42 -7 R was drilled and cased as a 3.5" Monobore Excape completion containing seventeen Excape perforating modules. Each module will complete a different production interval with ten feet of perforations followed by fracture stimulations in each interval. Fracture stimulation operations will commence with the perforating and treatment of Module 1 followed by modules 2 through 17. All fracture stimulation operations are typically concluded in one day, unless screenouts occur. After all treatments have been performed, coiled tubing will be utilized to cleanout the wellbore of module isolation flappers and frac proppant to PBTD. The well will then be jetted in with nitrogen via the coil tubing. Once the well is flowing on its own, coil tubing will be pulled from the well and rigged down. Well testing operations will then commence and continue until an acceptable gas rate is acheived and produced frac water load volumes are at manageable levels. Once well is adequately cleaned up, well testing equipment will be rigged down and the well will be turned over to production. Request for Approval to Vent Gas / Due to the nature of such fracture stimulations, large amounts of water are injected, along with the fracture proppant, that will have to be unloaded and cleaned up during the post fracture flowback/testing period. This unloading, or cleaning up period, requires the well to be vented to atmosphere until enough gas volume is achieved to flow the well into the high pressure sales gas system. The duration of this venting operation can last as little as a few hours up to a number of days based upon reservoir pressures, permeability, well performance, tubing size, and fracture placement success. For Marathon's gas well operations in the Kenai Gas Field, typical vent times are less than 144 hours. However, due to the uncertainty of exactly how long KBU 42 -7RD will be required to vent to atmosphere, this request is for a maximum vent period of 144 hours with a maximum vent volume during that period of 12 MMCF of methane gas. This volume is minimized _ . ^ _ due to the utilization of the Excape comp) ,tie rocess which enables all intervals of interest to be fracture \ o p treated on the same day and unloaded together at one time, instead of multiple frac days with multiple : flowback periods each requiring the venting of gas. If you have any questions regarding this gas venting request, please get in touch with the contact person indicated on the Form 10 -403. . ,1, Permit #: 208-052 K B U 42 -7 RD 0 API #: 50- 133204880000 Property Des: A - 028142 Pad 41 -7 KB: 21' AGL (87' KB Elevation) 37'FNL, 4,118' FWL X= 275,022.43 MARATHON Y= 2,361,975.39 Sec. 7, T4N, R11W, S.M. Lat: 60° 27' 31.782" N - Conductor Long: 151° 14' 54.738" W I 20" K -55 133 ppf Spud: 09:30 hrs 4/15/2008 Top Bottom MD Surf 117' TD Reached: 4/26/2008 TVD Surf 117' i Surface Casing 13 -318" 68 ppf Top of Cement (est.) Top Bottom 2,168' above 3.5" shoe (1,926') K - 55 MD Surf 1,099' g TVD Surf 1,093' V L -80 MD 1,099 1,750 1 TVD 1,093 1,732 Mil , ',... BTC @ 1,750' MD Cmt w/734 sks class G r 9 - 5/8" Casing Shoe @ 4,094' MD 44 Intermediate Casing (Window cut @ 4,094' MD) + 9 -5/8" L -80 40 ppf 4 7 Top Bottom MD Surf 4,094' (window) • Excape System Details I I t TVD Surf 3,873' - Ceramic flapper valves below l) BTC @ 5,582 Cmt wl 654 sks class G I each module as follows: Modules )r 7/8 connected w/flapper below PP I I t , Production Tubing Module 7. Modules 14/15 connected q w /flapper below Module 14. Modules I I 3 - 11 12/2" " u L - 80 9.3 ppf EUE 16/17 connected with flapper below 11 * - 1:)E Bottom Module 16. lr MD Surf 7,901' « TVD Surf 7,563' Flappers MD (RKB): 11 Module 17 - NA DI t 8rd with 6.25" OD control line protectors to 7901' Module 16 - 5,780' ? RKB. 8 -1/2" hole, Cmt w/ 349 sks (206 bbls) 10.5 ppg Module 15 - NA , Di f lead cmt, 689 sks (142 bbls) 15.8 ppg Class G tail. Module 14 - 6,031' ) - ... Module 13 - 6,213' D j Excape System Details Module 12 - 6,410' Dil ' -17 Excape modules placed Module 11 - 6,501' ? ► - control line for modules 12 - 17 Module 10 - 6,599' DI f I - control line for modules 6 - 11 Module 9 - 6,851' )} - .. control line for bottom 5modules Module 8 - NA" Di C - All modules w/ flappers above module 1 are Module 7 - 7,104' D} disappearing flapper versions. Module 6 - 7,260' Perfs MD {RKB): Module 5 - 7,329' DI C Module 17- 5,726' - 5,736' Module 16 - 5,773' - 5,783' Module 4 - 7,415' Module 15 - 5,956' - 5,966' Module 3 - 7,492' Di Module 14 - 6,023' - 6,033' Module 2 - 7,565' DI � Module 13 - 6,203' - 6,213' Module 1 - NA ? { Module 12 - 6,402' - 6,412' Module 11 - 6,492' - 6,502' DI ) Module 10 - 6,591' - 6,601' ",if Module 9 - 6,842' - 6,852' Module 8 - 7,040' - 7,050' riI Module 7 - 7,093' - 7,103' Excape Float Shoe @ 7833' MD ,, Module 6 - 7,247' - 7,257' ����� Module 5 - 7,318' - 7,328' ilo Module 4 - 7,404' - 7,414' TD I . - 1 PBTD Module 3 - 7,480' - 7,490' 7,926' MD 7,833' MD Module 2 - 7,552' - 7,562' 7,588' TVD 7,495' TVD Module 1 - 7,593' - 7,603' Well Name & Number: KBU 42 -7RD 1 Lease: Kenai Gas Field County or Parish: Kenai Peninsula Borough State /Prov:I Alaska Country:I USA Perforations (MD): Perf (TVD): Angle /Perfs: Angle @ KOP and Depth: BHP: BHT: 131 Completion Fluid: 6% KCL Dated Completed: Ground Level (MSL): 87 I Prepared By: Craig Rang Last Revison Date: May 8, 2008 5/8/2008 1:16 PM • . c[ [ r SARAH PALIN, GOVERNOR ALASKA OIL AIVD 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276-7542 Craig Rang Senior Completions Engineer Marathon Oil Company PO Box 1949 Kenai AK 99611 -1949 Re: Kenai Gas Field, Beluga Gas Pool, Kenai Beluga Unit 42 -7RD Sundry Number: 308 -179 Dear Mr. Rang: 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. Chair t DATED this 1 day of May, 2008 End. • Marathon Oil Company M thon Alaska Asset Team Mara P.O. Box 1949 MAR ATHON OBI Cmpany Kenai, AK 99611 Telephone 907/283 -1371 Fax 907/283 -1350 May 8, 2008 Mr. Tom Maunder RECEIVED Alaska Oil & Gas Conservation Commission 333 W 7 Ave MAY 1 2 2008 Anchorage, Alaska 99501 Alaska Oil & Gas Cons, Commission 4righrege Reference: 10 -403 Sundry Notice Field: Kenai Gas Field 2 St Well: Kenai Beluga Unit 42 -7 R48411 Dear Mr. Maunder: Enclosed please find the 10 -403 Application for Sundry Approvals for KBU 42 -7RD well. Marathon proposes to perforate and fracture stimulate the seventeen KBU 42 -7RD Excape modules. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, 4<exT a a• k:--4 Kevin J. Skiba Engineering Technician Enclosures: 10 -403 Sundry Notice cc: AOGCC Work Procedure Houston Well File Current Well Schematic Kenai Well File KJS CLR ORIGINAL BOP test extension for KBU42 -71 Page 1 of 1 Regg, James B (DOA) p;-6 70 '6 ---0 From: Regg, James B (DOA) Sent: Thursday, May 01, 2008 10:29 AM e 'lf 5, f o To: 'Lawson, Rowland C.' Cc: Maunder, Thomas E (DOA); DOA AOGCC Prudhoe Bay Subject: RE: BOP test extension for KBU42 -7RD Rowland — Your request to delay the BOPE test (due 5/2/08) until the gas influx has been mitigated is approved. We agree that shutting down and pulling out of the hole to test BOPE could create a worse condition. An inspector will contact you about witnessing the BOPE test; you should coordinate directly with him. Please remember that while the regulations allow BOPE testing on a 14 -day cycle for development drilling, the intent of the 14 -day cycle is to take advantage of opportunities proximate to the test due date to avoid waiver requests. In this case, based on our phone conversation, it appears testing BOPE could have been done prior to running back in the hole on April 29. Thank you for following up our phone conversation with the email request. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 phone: 907 - 793 -1236 fax: 907 - 276 -7542 From: Lawson, Rowland C. [mailto:rclawson @marathonoil.com] Sent: Thursday, May 01, 2008 9:46 AM To: Regg, James B (DOA) Subject: BOP test extension for KBU42 -7RD Jim We would like to request an extension for BOP testing on the KBU 42 -7RD well. While running in the hole on 29 April we lost circulation. Since then we have been sitting at the shoe working to get circulation back. We are now circulating but need to increase our mud weight to be able to continue to run in the hole and be sure we do not take a gas kick from a gas production zone on the bottom of the hole. On the first circulation we got 500 units gas and then it immediately fell and we have not seen any high gas while continuing to circulate. This would indicate we are getting influx from the production zone when not pumping. If we shut down at this time to do a BOP test we will have more gas migration. We hope to have our mud weight high enough to work to bottom by tonight. Once on bottom we will circulate out and should get all the gas out of the well. If the gas is under control we will pull out of the hole and can test BOP's at that time. Thanks Rowland Lawson Drilling Supervisor Marathon Oil Company 5/1/2008 • t IL I I SARAH PALIN, GOVERNOR ALASKA OIL AND G AS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company 3201 C. Street, Ste 800 Anchorage, AK 99503 Re: Kenai Gas Field, Beluga /Upper Tyonek Oil Pool, KBU 42 -7RD Marathon Oil Company Permit No: 208 -052 Surface Location: 36' FNL, 889' FEL, SEC. 7, T4N, R11W, S.M. Bottomhole Location: 1477' FNL, 442' FEL, SEC. 7, T4N, R11W, S.M. Dear Mr. Tank: n 1 is the approved application for permit to redrill the above referenced E c osed pp pp p development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659 -3607 (pager). Sincerely, t Daniel T. Seamount, Jr. 711 Chair DATED this / r day of April, 2008 cc: Department of Fish & Game, Habitat Section w/o end. Department of Environmental Conservation w/o end. • Worldwide Drilling North America MM Marathon Oil C P.O. Box 3128 MARATHON Houston, TX 77253 -3128 Telephone 713 - 629 -6600 Fax 713 -499 -6737 April 2, 2008 John Norman RECEIVED Commissioner State of Alaska APR 0 2 2008 Alaska Oil & Gas Conservation Commission 333 West 7 Ave, Suite 100 Alaska Oil & Gas Cons. Commission Anchorage, AK 99501 Anchorage Reference: Drilling Permit Application — Re -drill KBU 42 -7 Permit No: 199 -025 Field: Kenai Gas Field Well: KBU 42 -7RD Dear Mr. Norman Enclosed please find the PERMIT TO DRILL application, along with the associated attachments. The intent is to sidetrack out of the existing well KBU 42 -7 and re- establish a viable EXCAPE completion in the Beluga / Upper Tyonek Pool in the Kenai Gas Field. No completion is desired in the Sterling pool. As we have noted in earlier correspondence, the BLM Onshore Order No. 1, dated March 7, 2007 requires data sent to them to be in North American Datum 1983 (NAD 83). We also acknowledge Mr. Maunder's e-mail concerning the requirement for the surface location and directional data sent to the AOGCC to be in NAD 27. On our recent previous applications, we had the State Plane Coordinates specified on the 10 -401 in NAD 27 as required, and had a surface plat in NAD 27. For the directional data we utilized the National Geodetic Survey conversion in the program CORPSCON to calculate the State Plane Coordinates in NAD 27 for the planned and actual wellpaths from the NAD 83 data and presented both in our directional survey attachment for the 10 -401. We also provided the same data electronically, so that the AOGCC had this for data input into their database. We are providing the same information for KBU 42 -7RD as well. If you require further information, I can be reached at 713 - 296 -3273 or by e-mail at wjtank @marathonoil.com. Sincerely, ‘A, W.7 7 Willard J. Tank Advanced Senior Drilling Engineer Enclosures 21 4 .. ' -, . Kt(:tIVEU ' STATE OF ALASKA ArK 0 2 2008 ALASO OIL AND GAS CONSERVATION COMMO5ION `' PERMIT TO DRILL A i3 Oil & Gas Cons. Commission 20 AAC 25.005 Anchorage 1a. Type gf V1rk: 1 b. Current Well Class: Exploratory 0 Development Oil 0 1 c. Specify if well is proposed for: Drill , ; ) t`Redri'! E Stratigraphic Test 0 Service ❑ Development Gas • Q Coalbed Methane ❑ Gas Hydrates ❑ Re -entry ' ; .i°` „k.' ' Multiple Zone . is Single Zone Ill Shale Gas E] 2. Operator Name: 5. Bond: Blanket 0 Single Well El 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 • KBU 42 -7RD • 3. Address: 6. Proposed Depth:Be/07 v� se 7 f 12. Field /Pool(s): 3201 C. Street, Suite 800, Anchorage, AK 99503 MD: 8,795 /4, /TVD: ,$,-7-A8' Kenai Gas Field 4a. Location of Well (Governmental Section): 7. Property Designation: A.{, 7 Beluga / Upper Tyonek Pool • Surface: 36' FNL, 889' FEL, Sec. 7, T4N, R11W, S.M. • A- 028142 ' Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. April 14, 2008 F Total Depth: 9. Acres in Property: 14. Distance to Nearest 4) 1,477 FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. 2,494.04 Property: .3,6661E `�`' h `'``'��" r D �.1,� ,� 4b. Location of Well (State Base Plane Coordinates): NAD 27 10. KB Elevation 15. Distance to Nearest Well Surface: x - 275,022.43 • y - 2,361,975.39 ' Zone - 4 (Height above GL): (21' AGL) 87 . feet Within Pool: 1,357 ft KBU 41 -7 • 16. Deviated wells: Kickoff depth: • 4,105 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 27.563 degrees Downhole: 5,358 . Surface: 3,123 -- 7 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 8 1/2" 3 1/2" 9.3 L -80 EUE 8,886' 0' 0' 8,907' 8,587' 392 sacks lead, 1,265 sacks tail 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): 7,570' 7,309' 6,706' 6,706' 6,445' 7,420' Casing Length Size Cement Volume MD TVD Conductor /Structural 117' 20" Driven 117' 117' Surface 1,729' 13 3/8" 734 sacks 1,750' 1,732' Intermediate 5,561' 9 5/8" 654 sacks 5,582' 5,322' Production 7,497' 3 1/2" 875 sacks 7,518' 7,257' Liner Perforation Depth MD (ft): 5,636' - 7,409' (Gross)_) Perforation Depth TVD (ft): 5,376' - 7,148' (Gross) ,, L1 1 `7"0`6 20. Attachments: Filing Fee BOP Sketch 0 Drilling Program 0 Time v. Depth Plot Q Shallow Hazard Analysis 0 Property Plat El Diverter Sketch 0 Seabed Report ❑ Drilling Fluid Program 0 20 AAC 25.050 requirements III i 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature 7 A dt,cie (,V.T'T Phone 713 - 296 -3273 Date April 2, 2008 Commission Use Only Permit to Drill G API Number: /u P rmi Approval See cover letter for other Number: Z lei ••�' L 50- ; 1 " (J � te: , /i , 0 R requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: 1' Other: t S� cas 0 f Samples req'd: Yes0 No ® Mud log req'd: Yes0 No© 5 C `� QS V c)._NhC , H measures: YesEl No 0 Directional svy req'd: YesE Nor] 614°11‘ '''' Pg tc.) 0-cce-i›A \(-Az , ,x1). NA(.._-C 0 ''S c,,Crc, C\ APPROVED BY THE COMMISSION /� T , COMMISSIONER Form 10 -401 Revised 12/2005 I "�Y' I G AL Submit in Duplic to d) • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Kenai Gas Field KBU 42 -7RD Originator: Will Tank April 2, 2008 Date Reviewed by: Pete Berga 4/- Z -Z00, Date Brian Roy Date 4/2/2008 Page 1 of 18 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska TABLE OF CONTENTS 1. Emergency Response Information 4 1.1 Directions to Location 4 1.2 Rig Contact Numbers 4 1.3 Marathon Emergency Response Contacts 4 1.4 Outside Emergency Response 4 1.5 Marathon Contact List 5 2. Regulatory Agency Contacts 5 2.1.1. Internal Regulatory Contact 5 2.1.2. External Regulatory Contact 5 3. Regulatory Compliance 5 4. Drilling Program Summary 7 4.1 General Well Data 7 4.2 Working Interest Owners Information 7 4.3 Geologic Program Summary 7 4.4 Summary of Potential Drilling Hazards 8 4.5 Formation Evaluation Summary 8 4.6 Drilling Program Summary 9 4.7 Casing Program Summary 10 4.8 Casing Design 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) 11 4.10 Casing Test Pressure Calculations 12 4.11 Blowout Prevention Equipment, Testing and General Procedures 12 4.11.1. Function Testing 12 4.11.2. Pressure Testing 13 4.12 Wellhead Equipment Summary 13 4.13 Directional Program Summary 13 4.14 Directional Surveying Summary 14 4.15 Drilling Fluid Program Summary 15 4.16 Drilling Fluid Specifications 15 4.17 Solids Control Equipment 16 4.18 Cement Program Summary 16 4.19 Bit Summary 17 4.20 Hydraulics Summary 17 4.21 Formation Integrity Test Procedure 18 4/2/2008 Page 2 of 18 • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska Attachments Group Attachment Attached Commercial Information AFE Days /Cost vs. Depth Curves X Project Objectives and Scorecard RSO Coding Information X Requisitions Vendor List Bonus Program Drilling Contract Regulatory / HES Information Emergency Evacuation Plan X H2S Contingency Plan n/a Regulatory Permits X Regulatory Rules and Regulations Risk Analysis Miscellaneous Programs (Vendors) Bit Proposal X Cement Proposal X Directional Plan X Fluids Program X Wellhead Equipment — Description /Drawings Drill String and BHA Summary Rig Mobilization /Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Proposed Formation Pore. Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geologic Cross Section Bathymetry Map n/a Analysis Riser Analysis n/a Station Keeping Analysis — Mooring /DP n/a Stress Check Casing Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Rig Elevations X Well Location Diagram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe Specifications 4/2/2008 Page 3 of 18 • • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 1. Emergency Response Information 1.1 Directions to Location Method Directions Air Latitude - 60 °27'31.782 "N Longitude - 151 °14'54.738 "W NAD 83 From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go approximately 5 miles, just Ground past the Kenai Gas Field office at Pad 34 -31. Turn East onto the next lease road South of the Kenai Gas Field office. Travel Southeast 1 mile to pad 14 -6. Go through pad and continue East 0.5 mile to pad 41 -7. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907 - 283 -1314 907 - 394 -1321 Marathon Supervisor 907 - 283 -1312 907 - 394 -1317 1.3 Marathon Emergency Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907 - 283 -6465 CERT 24 hrs Notification 1- 800- MOC -CERT CERT Crisis Center Houston 713- 296 -4230 713 - 296 -4237 1.4 Outside Emergency Response Location Contact Phone Fire Kenai / Soldotna, Alaska 907 - 262 -4792 Ambulance Hospital Kenai / Soldotna, Alaska Central Peninsula Hospital 907 - 262 -4404 Kenai Police 907 - 283 -7879 Police Kenai / Soldotna, Alaska Soldotna Police 907 - 262 -4455 State Police 907- 262 -4453 Coast Guard 800- 478 -5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil / Toxic Chemical Spills 800 - 424 -8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 4/2/2008 Page 4 of 18 I 0 . KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713 - 296 -3273 713 - 203 -8398 713 - 499 -6737 832 - 934 -2617 Pete Berga Drilling Superintendent 907 - 565 -3032 907 - 529 -0551 907 - 565 -3076 907 - 346 -3763 Bryan Roy Drilling Manager 713 - 296 -3256 832 - 444 -4772 713 - 499 -6707 281 - 246 -4686 Jennifer Enos Geologist 713 - 296 -3319 713 - 408 -3583 Moksh Dani Reservoir Engineer 713 - 296 -3140 832 - 692 -4700 Craig Rang Completion Engineer 907 - 283 -1372 907 - 394 -1824 Ken Walsh Production Engineer 907 - 283 -1311 907 - 394 -3060 907 - 283 -3050 Rowland Lawson Drilling Supervisor 907 - 283 -1312 907- 394 -0953 907 - 283 -1313 John Nicholson Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 Dan Byrd Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 - Mitch Burns Drilling Supervisor 907 - 283 -1312 907 - 394 -2641 907 - 283 -1313 2. Regulatory Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Compliance 713- 296 -3254 979 - 830 -7927 979 - 836 -9390 713 -499 -6748 2.1.2. External Regulatory Contact Contact Title Office Phone Facsimile 24 hr Emergency Pager AOGCC 907 - 793 -1236 AOGCC North Slope Pager - 907 - 659 -3607 BLM 907 - 267 -1442 3. Regulatory Compliance • Regulation Requirement Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig. BOP testing interval requirement is now 14 days (20 AAC 25.035 e 10 A). BOP Testing Requirement for a 24 hour notice to AOGCC and to the BPM prior to BOP tests. (20 AAC 25.035 e 10 F) Prior to Spud Requirement for a 24 hour notice to AOGCC and to the BPM prior to spud of the well. Water Sampling Test the rig camp water for the Class C drinking water permit. Surface Casing & Cementing Requirement for a 24 hour notice to the BPM prior to setting, cementing, and testing surface casing. Intermediate Casing & Requirement for a 24 hour notice to the BPM prior to setting, cementing, and testing intermediate casing. Cementing Cuttings Tank Take picture of cutting tank in use and after cleaning for the ADEC. 4/2/2008 Page 5 of 18 S • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska Logging Requirement for a 24 hour notice to the BPM prior to logging. Production Casing & Requirement for a 24 hour notice to the BPM prior to setting and cementing Production casing (EXCAPE string) Cementing the well. Requirement for 2 pipe rams, one blind ram, and one annular for an operation where the maximum potential surface pressure of is greater than 3,000 psi. (20 ACC 25.035 (e) (1) (B) (i)) Marathon is requesting a waiver from the above regulation for KBU 42 -7RD. We are requesting that the BOP stack be configured with one pipe ram instead of two, due to rig height restrictions in the running of the 3 1/2" EXCAPE production casing. Pipe Rams The height restriction involves having rig crew members routing control line and electrical line through the tubing head and tree adapter flange after the 3 1/2" casing is cemented and the BOP stack is picked up. This is prior to setting the casing on slips and cutting the casing sticking up. These lines control firing of the perforating guns and the monitoring of downhole pressure and temperature in our EXCAPE completion system. Similar waivers have been requested for EXCAPE completion wells in the Kenai Gas Field and were granted. No problems were encountered while doing this operation on any of the wells. Utilizing the 13 5/8" 5M stack currently found on the Glacier Drilling #1 rig is more than sufficient for pressures to be encountered. Prior to Rig Move Notify Alaska Department of Natural Resources 24 hours before moving the rig, if going to Ninilchik or Kasilof. Comments 4/2/2008 Page 6 of 18 • 0 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4. Drilling Program Summary 4.1 General Well Data Well Name KBU 42 -7RD Lease / License Surface Location 36' FNL, 889' FEL, Sec. 7, T4N, R11W, S.M. WBS Code Slot/Pad KGF Pad 41 -7 Field Kenai Gas Field Spud Date 4/14/08 (est.) . KB (above MSL) 87' • County /Province Kenai Peninsula API No. GL (above MSL) 66' State / Country Alaska Permit No. Perm. Datum KB Total MD 8,907' Well Class Development Water Depth N/A Total TVD 8,587' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Comments: 4.2 Working Interest Owners Information Company Working Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 907- 561 -5311 907 - 565 -3076 Anchorage, AK 99519 -6168 4.3 Geologic Program Summary Surface Location Coordinates — NAD 83 From Lease /Block Lines 36' FNL, 889' FEL, Sec. 7, T4N, R11 W, S.M. Latitude 60° 27' 31.782" N Longitude 151° 14' 54.738" W UTM North (Y) 2,361,730.674' UTM East (x) 1,415,050.247' Tolerance Pore Pore MD - RKB TVD — RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Sterling A -8 (Not a Prod Target) 3,819 3,623 0.8 — 6.5 Sandstone Gas/Water Beluga (Not a Prod Target) 4,993 4,690 1.5 — 7.3 Sandstone Gas Middle Beluga (Primary Target) 5,677 5,357 5.8 — 8.5 Sandstone Gas Lower Beluga (Primary Target) 6,407 6,087 5.8 — 8.5 Sandstone Gas Tyonek (Primary Target) 7,487 7,167 5.8 — 10.0 Sandstone Gas Tyonek 84 -6 (Primary Target) 8,757 8,437 11.5 — 12.0 ✓ Sandstone Gas 4/2/2008 Page 7 of 18 • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska Depth (KB) Horizontal Displacement (ft) MD TVD +N / -S +E / -W Tolerance Target (ft) (ft) Location (Y) (X) (ft) Rectangle 150' Middle Beluga 5,677 5,357 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. -1,441 447 West, 50' East Rectangle 150' Lower Beluga 6,407 6,087 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. -1,441 447 West, 50' East Rectangle 150' Tyonek 7,487 7,167 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. -1,441 447 West, 50' East Rectangle 150' Tyonek 84 -6 8,757 8,437 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. -1,441 447 West, 50' East Rectangle 150' TD 8,907 . 8,587. 1,477' FNL, 442' FEL, Sec. 7, T4N, R11W, S.M. -1,441 447 West, 50' East 4.4 Summa of Potential otential Drlllinq Hazards Depth KB Hazard Event (TVD) Discussion Precautions Lost Circulation in Low Pressure Sidetrack Control losses by using sufficiently sized LCM, Take care not to surge the hole during Sterling and Beluga sands Hole including fibrous and calcium carbonate types. tripping operations. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut -in procedures must be posted in the driller's dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No H is anticipated. ✓ Gas sands will be encountered from +1- 4,105' MD (3,883' TVD) to total depth of the well. These sands will run from highly depleted to above normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling and Beluga sands. The DRILPLEX mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Best Practices: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surface / Intermediate None None None (Existing) Sidetrack Production None Reeves Quad Combo, MFT Pressures. Basic with GCA, shale density, temperature in and 4,105' — 8,907' MD Pull GR- Neutron to surface. out, sample collection (10' samples). Completion N/A GR, CCL, CBL N/A Comments: 4/2/2008 Page 8 of 18 i KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.6 Drilling Program Summary Sidetracking Operations: Cut and mill window in 9 5/8" casing at +/- 4,105' — 4,121'. ‘ VQ ■v'r" 1. Rig work continues from abandonment procedure. Glacier 1 will already be rigged up over the well. The 3 1/2" casing will have been cut and pulled. 2. RIH with 8 1/2" mill and 9 5/8" scraper on 5" DP. Tag cement on top of retainer and clean out casing to 4,180' MD. 3. Displace hole with MI Drilplex mud system. TOOH, laying down mill and scraper. 4. RU Expro. Run 9 5/8" bridgeplug on wireline, setting at 4,135' MD ( +/- 2' below casing collar). POOH with wireline. RD Expro. 5. MU and RIH with bottom trip whipstock. RU and run MWD to set whipstock for — 45° right of high side tool face orientation. Cut window and ensure that all mills are worked thru window (approximately 4,105' — 4,121'). CBU and perform FIT at KOP to -- 13.3 ppg Best Practices: 1 Comments: Production: Drill 8 1/2" hole to +/ 8,908' set 3 - 1/2" EXCAPE string. 1. PU 8 1/2" bit and directional BHA. 2. Drill 8 1/2" hole to an anticipated TD of 8,908' MD (8,587' TVD) as per the directional program, short tripping as required. 3. At TD circulate hole clean. Make wiper trip. TOOH. 4. RU Precision. Run open hole logs as per plan. RD logging company. 5. TIH w/ 8 1/2" bit to TD for wiper trip. TOOH to 9 5/8" shoe and circulate until log evaluation is complete for picking EXCAPE modules. After picks are made, trip to TD and circulate clean. TOOH and lay down BHA and drill pipe. Pull wear bushing. 6. RU and run 3 1/2" EXCAPE casing string. RU logging company to correlate EXCAPE modules to open hole logs. RD logging company. 7. Cement 3 1/2" casing while reciprocating. Bump plug with 500 psi over displacement pressure. WOC. 8. PU 3 1/2" casing. PU BOP stack. Make control line and electric line connections to tubing bonnet assembly. Set slips. Cut 3 1/2" casing. 9. LD BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/16" 10M tubing head adapter and 3 1/16" 10M tree. Test tree to 5,000 psi. 10. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. Perforating guns will be run on the outside of the 3 1/2" production casing with a flapper valve just below each perforating gun. Guns to be activated by control line to surface. Best Practices: 1 Drill all hole sections with 5" drillpipe to maximize hole cleaning hydraulics. 2 Pre -heat mud mix water to help in early shaker screen blinding issues with the mud. 3 Do not circulate on bottom longer than 1 hour prior to moving pipe on a short trip to minimize hole washout. This is important when waiting on log analysis to give EXCAPE module placement points. 4 Put lubricant in prior to drill out of intermediate shoe. 5% Lubetex is normally required, possibly more depending on solids in the mud. Comments: Due to anticipated losses in the Sterling and Upper Beluga, both calcium carbonate and fibrous material may be needed. Care must be taken on trips to minimize the possibility of surging the hole. 4/2/2008 Page 9 of 18 • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska Completion: Completion will be done without a rig. This will include activating the EXCAPE perforating modules via hydraulic pressure on the control lines and fracture stimulation of targeted zones. Wellbore clean out will likely include slickline and possibly nitrogen jetting. Best Practices: 1 Comments: 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole o ..= o w Size Weight ID Drift O. D. Torque Size m a o a a (in) Top Bottom Ibs /ft (in) (in) Grade Type (in) ft-Ibs (in) 0 ~ 13 3/8 0 1,099 68 12.415 12.259 K -55 BTC 14.375 N/A* 16 3,450 1,950 1,300 13 3/8 1,099 1,750 68 12.415 12.259 L -80 BTC 14.375 N/A* 16 5,380 2,670 1,300 9 5/8 0 5,575 40 8.835 8.679 L -80 BTC 10.625 N/A* 12 1/4 5,750 3,090 979 31/2 0 8,907 9.3 2.992 2.867 L -80 8rd 4.5 3,200 81/2 10,160 10,530 207 Best Practices: 1 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 2 * - Make up buttress connection to proper mark, not to a torque value. Comments: i. The 13 3/8" and 9 5/8" casing strings are existing strings. A casing exit will be made out of the 9 5/8 ". ii. THE 3'/2" CASING WILL BE NEW CASING. iii. Overpull for the 3 1/2" string must be limited to 93,000 Ibs. 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum m c Casing Depth Mud Wt Frac. Form Surface a o Size Weight TVD When Set Grad Press Pressure 1 o fp (in) (lb/ft) Grade (ft) (Ib /gal) (lb/gal) (lb/gal) (psi) m 0 ~ 13 3/8 68 K -55 & L -80 1,732 Existing Casing String 9 5/8 40 L -80 5,315 Existing Casing — N/A 2,136 Existing Casing — N/A 31/2 9.3 L -80 8,587 12.2 15.0 12.0 3,123 1.16 1.94 1.30 4/2/2008 Page 10 of 18 1 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP * MASP ** Mud /Gas (in) (ft) (psi) (psi) Percentage 13 3/8 1,500 Not applicable, 9 5/8" Intermediate is already in place. 9 5/8 5,418 3,298 2,136 30/70 3 1/2 7,738 7,112 3,123. 30/70 * MAWP = Maximum allowable working pressure ���� ** MASP = Maximum anticipated surface pressure The calculation method for MASPBHP has been modified from the standard AOGCC use of a Bottom Hole Pressure — 0.1 psi /ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure — 36%' Mud Column — 70% Gas Column. This method follows the MMS standard for'any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. Intermediate casing: 9 5/8" (5,582' MD, 5,322' TVD) Casing window at 4,105' MD — 4,121' MD _j3,883' TVD — 3,897' TVD) MASPf = ((Fracture gradient at window) x .052 x TVDW;nd0W Hydrostatic pressure of gas column at the window. MASPfrac = (12.5 ppg x .052 x 3,883') - (0.1 psi /ft x 3,883') MASPfrac = 2,524 psi - 388 psi MASPfrac = 2,136 psi. MASPbh = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (12.0 ppg x .052 x 8,587') — (0.3 x 12.2 ppg x .052 x 8,587') — (0.7 x 0.1 psi /ft x 8,587') MASPbhp = 5,358 psi — 1,634 psi — 601 psi MASPbhp = 3,123 psi MASP = MASP frac = 2,136 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) — (12.2 — 8.6) x .052 x 3,883' MAWP = 4,025 psi — 727 psi = 3,298 psi Production casing: 3 1/2" (8,907' MD, 8,587' TVD) MASPfrac = ((Fracture gradient at shoe) x .052 x TVDshoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac = (15.0 ppg x .052 x 8,587') - (0.1 psi /ft x 8,587') MASPfrac = 6,698 psi - 859 psi MASPfrac = 5,839 psi. MASPbn = BHP open hole td - Hydrostatic pressure of mud portion — Hydrostatic pressure of gas portion MASPbh = (12.0 ppg x .052 x 8,587') — (0.3 x 12.2 ppg x .052 x 8,587') — (0.7 x 0.1 psi /ft x 8,587') MASPbn = 5,358 psi —1,634 psi — 601 psi MASPbh = 3,123 psi MASP = MASPbh = 3,123 psi MAWP = (0.7 x Casing Burst) — (Mud Wt. — Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 10,160) — (12.2 — 12.2) x .052 x 8,587' MAWP = 7,112 psi — 0 psi = 7,112 psi 4/2/2008 Page 11 of 18 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska Best Practices: 1 Comments: 4.10 Casing Test Pressure Calculations Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back -up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low /High Casing (in) (psi) (psi) (psi) (lb/gal) Size & Rating (psi) (1) 13 -5/8" 5M annular (1) 13 -5/8" 5M pipe ram Intermediate 9 5/8 3,298 2,136 1,500 8.6 250/5,000 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets (1) 13 -5/8" 5M annular Production 3 1/2 7,112 3,123 2,000 12.2 (1) 13-5/8" 5M pipe ram 250/5,000 (1) 13 5/8" 5M blind ram (1) 13 -5/8" 5M drilling spool with 3 -1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13 -5/8" x 5000 psi annular preventer, a 13 -5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top and a 13 -5/8" x 5000 psi drilling spool (mud cross) with 3 -1/8" x 5000 psi outlets. The choke manifold will be rated 3 -1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor -boy gas buster, and a vacuum -type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 4/2/2008 Page 12 of 18 • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. AU tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type 13 5/8" x 9 5/8" Manual Casing Head 13 -5/8" 3M X 13 -3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 Slip 13 -5/8" 3M Studded Bottom X 13 -5/8" 5M Flg Top, W/ 2, 2- 1/16" 5M Studded Outlets, 13 5/8" x 3 1/2" Manual Tubing Head U,AA,PSLI,PR1 Slip Adapter Flange 13 -5/8" 5M X 3- 1/16" 10M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Comments: Control lines and electric cable for the EXCAPE system will be routed through the adapter flange ports. 4.13 Directional Program Summary Build Turn Coordinates Sec. MD TVD Rate Rate Dogleg Inclination Azimuth +N / -S +E / -W VS No. Description (ft) (ft) ( °/100') ( °/100') ( °/100') (deg) (deg) (ft) (ft) (ft) 1 Tie On / KOP 4,105.00 3,883.26 0 0 0 23.283 150.340 - 983.96 577.73 552.06 2 End of Window 4,125.00 3,901.51 12.00 0 12.00 25.034 154.353 - 991.21 581.52 556.37 3 Build up Section 1.80 7.28 3.75 154.353 4 End of Build 4,774.90 4,492.94 1.80 7.28 3.75 27.563 210.994 - 1,247.95 563.33 786.52 5 Hold Section 0 0 0 27.563 210.994 6 End of Hold 4,829.39 4,541.25 0 0 0 27.563 210.994 - 1,269.56 550.35 811.73 7 Drop Section -3.25 0 3.25 210.994 8 End of Drop 5,677.47 5,357.00 -3.25 0 3.25 0 210.994 - 1,441.08 447.31 1,011.82 9 TD 8,907.47 8,587.00 0 0 0 0 210.994 - 1,441.08 447.31 1,011.82 4/2/2008 Page 13 of 18 i 1 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 0 L lr 0 Too T 1 I i , 1 _ _ ]- — 13 3/8" IRA _ _ p 1 i _ >_ t - ,::::L N 9 5/8 o w 4000 r p I KBU 42 -7RD Middle Beluga_ t 3 o I _Oziginal V+/ellbore U 5000 L — _� I z - - - - - -- E _ original V! llbore - 1� - KBU Ill Lower Beluga > __ t -1000 RD Middle Beluga ; • 6000 /1 p I 7 2 co pc __- KBU 42 -7RD Tyonek_ _ _ 7000 /1 I i I KBU 42 -7RD Lower Beluga KBU 42 -7RD Tyonek 843 - — KBU 42 -7RD TD 8000 3 1/2" ummppr- KBU 42 -7RD Tyonek -- - — K B U 42 -7RD TD - KBU 42 -7RD Tyonek 84-6 1 1 1 1 1 1 1 1 1 I I I I 1 1 I I 1 I 1 I{{I I I 1 I I I I I I , I -3000 -2000 -1000 0 1000 2000 3000 4000 0 1000 Vertical Section at 210.64° (2500 ft /in) West( -) /East( +) (500 ft /in) Comments: Vertical section calculated from a reference azimuth of 318.39° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) KTU 32 -7H 84.50 8,788 KTU 32 -7 805.13 4,105 KBU 41 -7 923.69 4,105 j No serious interference exists. See attached directional plan and anticollision analysis for more details. 1 Best Practices: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Remarks . Tool Surface / Use existing MWD Intermediate 0 - 4,105' surveys, set whipstock with MWD tool Sidetrack Production 4,105' - 8,907' X Best Practices: 1 Comments: 4/2/2008 Page 14 of 18 • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.15 Drilling Fluid Program Summary Interval — TVD Minimum Inventory From To Density Gel (ft) (ft) (lb/gal) Fluid Description Additives Viscosifier Barite DRILPLEX, GELPLEX, Soda Ash, Caustic, 0 4,105 8.8 — 9.1 DRILPLEX Milling Fluid FLOPLEX 4,105 8,907 9.1 — 12.2 DRILPLEX (reconditioned from DRILPLEX, GELPLEX, Soda Ash, Caustic, milling fluid) FLOPLEX, EMI 795, EMI 1008 Best Practices: 1 Comments: DRILPLEX needs close monitoring since this is the first well Marathon has used it on. 4.16 Drilling Fluid Specifications Interval — TVD LSRV Drill From To Density 1 min PV YP Fluid Loss Solids (ft) (ft) (lb/gal) (Ib. /100ft (cP) (lb /100 ft (cc) pH MBT ( %) 0 3,883 8.8 -9.1 10 -14 35 -45 <10 10.8 -11.5 0 3,883 8,587 9.1 -12.2 60,000 + /- 12 -18 <9 10.8 -11.5 <8 <5 Best Practices: 1 As a standard practice for long string completions, the drilling mud that will remain above the top of cement on the 3 production casing will be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to aide in controlling Ieakoff. 4/2/2008 Page 15 of 18 • 1 KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.17 Solids Control Equipment o � � m N C V N y 45 m c m m r(1) .N U v c 2 Interval 0 0 U 0 v N Comments 0 — 8,907' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Equipment Specifications Item (quantity, design type, brand, model, flow capacity, etc) Shaker 2 — Swaco Mongoose PT Desander N/A Desilter 1 — Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 — MI /Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G &I Facility Zero Discharge N/A Best Practices: 1 Have vacuum trucks pull fluids from trough above slop pit to more efficiently pull fluids for disposal. This minimizes water added to the solids to suspend for pickup by the trucks, thus minimizing total volume to be disposed of. Comments: 4.18 Cement Program Summary Depth Gauge Top of Cement Gauge Ann Vol Slurry Casing Hole Ann Vol With OH Density Open Hole Thickening Size MD TVD Size MD TVD To TOC Excess Lead/Tail Excess Time (in) (ft) (ft) (in) (ft) (ft) (ft (ft (ppg) ( %) (hrs) 3 1/2 8,907 8,587 8 1/2 3,600 3,426 1,753 2,381 12.2 / 15.8 40 N/A Mix Water Compressive Casing Slurry TOC Strength Size Density Qty Yield Vol MD Qty WL FW (psi) (in) Slurry Cement Description (lb/gal) (sx) (ft /sx) (ft (ft) (gal/sx) Type (cc) ( %) 8 hr 24 hr Lead Class "G" 12.2 392 2.30 901 3,600 Fresh 3 1/2 Tail Class "G" 15.8 1,265 1.17 1,480 5,677 4.97 Fresh 24 0 226 2,632 Best Practices: 2 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. Comments: See cement prognosis for details and spacer specifications. 4/2/2008 Page 16 of 18 • 0 • KBU 42 -7RD Marathon Oil Company P Y Drilling Program Alaska 4.19 Bit Summary Interval — MD Type Recommended Estimated Expected From To Size WOB Rotating Minimum ROP (ft) (ft) (in) Manufacturer Model No. IADC (kips) RPM Hours (ft/hr) 4,105 8,907 8 1/2 Christensen HCM605 M323 Up to 25 Motor Best Practices: 1 Comments: See bit prognosis for additional information. Back up bits for the 8' /Z" hole section will consist of mill tooth and TCI tricone bits. 4.20 Hydraulics Summary Max Press @ Displacement @ Max Rate @ Liner ID Stroke 90% WP 95% Vol. eff 95% Vol. eff Hole Sections Used Qty Make Model (in) (in) (psi) (gal /stroke) (spm /gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. I Hole Pump Standpipe Openhole Nozzle OP at Depth -MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32 "s) (psi) Remarks (Drill string configuration) 0 — 4,105 8 1/2 Abandonment Section — Pump rates will vary based on activity. 4,105 — 8,907 8 1/2 450 2,613 233 12.2 13.94 15 — 15's MI Virtual Hydraulics (@ 8,907' MD) Best Practices: 1 Sidetracking and drilling operations should be done with 5" drillpipe to maximize hole cleaning hydraulics. Comments: See separate hydraulics calculations. DRILPLEX mud is very shear thinning. It is anticipated that the actual ECD will be lower. All attempts need to be made to keep the ECD at or above the Middle Beluga (5,677' MD, 5,357' TVD) below 13.3 ppg EMW. Annular velocities in the 8'/" hole was calculated using 5" drillpipe. 4/2/2008 Page 17 of 18 • • KBU 42 -7RD Marathon Oil Company Drilling Program Alaska 4.21 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak -off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak -off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing window and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut -in for 10 minutes or until the shut -in pressure stabilizes. Best Practices: 1 Comments: 4/2/2008 Page 18 of 18 • • Marathon Oil Well KBU 42 -7RD BOP Stack 'Flow Nipple I -► Flow Line 13 5/8" 5M Annular Preventer NIMIW I l > < 13 5/8" 5M Double (Pipe Ram Ram Preventer 2 1/16" 5M 'Blind Ram Check Valve 2 1/16" 5M Manually 3 1/8" 5M Manually Operated Valves l> I Operated Valve X -- X -- 1 Kill 1 (Choke' 'P( ©,I' X J_ ‘r( 13 5/8" 5M Cross 1 3 1/8" 5M Hydraulically Operated Valve 13 5/8" 5M x 13 5/8" 5M Drilling Spool -\ Bottom of mud cross must be 24 -45" from ground level for Glacier 1 rig placement. 13 5/8" 5M Tubing Head Flange •. • Marathon Oil Well KBU 42 -7RD Choke Manifold Bleed off Line to To Gas Buster To Blooey Line Shakers r n n VII, u u u 1 1 1 , I 1 � I 00 101 - 0 I 11 i �I I 1 I I . 1 i 1= E1 © I r 1 u 1 Ark Wig TIP M CO I CO II °°_ Kell Dal 3" 5M Valves I 0 t u I ' I 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke I Gauge Block I Choke Hose to HCR e (from BOP Stack) 0 - 6,000 psi Choke Control Pressure Gauge Pressure Sensor PP -or Msrutotrf 11090i00 td{neilt 1 Valve Cheri 44tot• i 04ii •• titan= re it a• i i4.014i • tr3•s`r,4 0 .W Wlad !, - jj ' ' MO i. toy ia+ offs !p doe I law Nanli I{ Valve Notation re to m prevenMrra Annular Pressure and pita valves Manually Gauge. 0-3000 P5 g ; `KR•' N ftsgutaka I i , atry , min uat*ble horn 0 1500 psi r oftn fy around 1000 s Annular +tfyulak?r $4f unenvied. AiccunwlMMr (1 provides n&rywrtdarit rh • t i normally Pressure ;} regulat+on iii the s .... y r f lit , 3 11141411141,401, .+ . ....h „,, Mrsuflort Regullem Gauge- Vatvs• NiormsiHy in low O�t3t t) pressure i ! ' ! 1 f p re (left) posrlwn normal) For operations over y I 1500par, move to high around 3000 presstaM0(h0 postwar e1 ff • ♦ Manifold Pressure u 1 • i O lin I Gauge- 0• 6000 normally 1500psi ! 1 1 r Nitrogen Isolation Valve • - E�rrraaura G• ” <— High Pressure '' _ ' '`fr Name 0 Hector: Pressure `twitch - :����� Screen 8000 AuROmartecky Stops • • 4N11 ` pp1seheri they reach ...:..=2.1 "` q yy all and sorts wt+err • do pampa* drops to Ow �y�� NM0ttipri ® Main Air milers ' . - . • C= r Ilmigen ft _ M f 'rte ire ?.t00{var It Exptoaloh Proof Electric Mo tor Air �ubricator- Accumulator Relif Valve , - N Pop Off -set at 3200PS1 rte. _ Use SAE10. set 1111 j at 6 drops o; min. Check 1 r .� u4 :.�.. weekly. 77 • • Belt Guard- Triplex Galley Isolation t Air Pressure Switch • Drain Valve Electric I Valve for i Bypass- Normally closed. Motor Triplex U Air Pumps - but open with pressures 60-1 Ratio Triplex Pump- Switch- Pump- 3 f above 3000 psi Kepp in Normally f � Check oil level � � Suction Strainer u monthy Fill auto open, For Air Pumps with lOw 40 position 1 close for Suction Valve For Turn off I pressure Air operated when I exceeding Pumps - reamians servicing IT } 3000 PSI open. close during f ii i serviceing u Suction strainer for Tiplex pump. clean every 30 days ff • • Surface Use Plan for Kenai Beluga Unit, Well KBU 42 -7RD Surface Location: 36' FNL, 889' FEL, Sec. 7, T4N, R11 W, S.M. 1) Existing Roads Existing roads which will be used for access to KBU 42 -7RD are shown on the attached map. Kenai, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access KBU 42 -7RD. 3) Location of existing wells Well KBU 42 -7RD will be drilled on Kenai Gas Field (KGF) pad 41 -7. A pad drawing is enclosed that shows existing wells and the proposed location of KBU 42 -7RD. 4) Location of existing and /or proposed facilities The locations of existing production facilities on KGF pad 41 -7 are shown on the enclosed pad drawing. A existing flowline for KBU 42 -7 will be utilized for KBU 42 -7RD to connect to the existing production facilities. 5) Location of Water Supply A water supply well exists on the pad that KBU 42 -7RD will be drilled from. 6) Construction Materials No major construction is planned on the pad at this time. Leveling of the pad for this work will be done with minimal materials needed. No new dikes or ditches will be constructed. There are no topsoil or material stockpiles. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled across Pad 41 -18 of the Kenai Gas Field for disposal into Well KU 24 -7RD, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81 -176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34 -31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7 -194). • • d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface KBU 42 -7RD will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of KBU 42 -7RD and the other existing wells on the pad. 10) Surface ownership The surface owner of the land in the Kenai Beluga Unit is the Salamatof Native Association. Operator Certification Field: Kenai Gas Field Well: Kenai Beluga Unit, KBU 42 -7RD Surface Location: 36' FNL, 889' FEL, Sec. 7, T4N, R11 W, S.M. I hereby certify that I, or someone under my direct supervision, have inspected the drill site and access route proposed herein; that I am familiar with the conditions which currently exist; that I have full knowledge of state and Federal laws applicable to this operation; that the statements made in this APD package are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed in conformity with this APD package and the terms and conditions under which it is approved. I also certify that 1, or the company I represent, am responsible for the operations conducted under this application. These statements are subject to the provisions of 18 U.S.C. 1001 for the filing of false statements. Executed this 2" day of April , 20 08 Name Willard J. Tank ` t r Position Title Advanced Senior Drilling Engineer Address P.O. Box 3128, Houston, TX 77253 -3128 Telephone 713 - 296 -3273 Field Representative Pete Berga (Drilling Superintendent) (if not above signature) Address 3201 C Street, Suite 800, Anchorage, Alaska 99503 (if different from above) Telephone 907 - 565 -3032 (if different from above) E -mail wjtank(a�marathonoil.com (optional) • LIMITE OF PAD FOOTPRINT -- ---- ----- F. #• C ONTROL POINT 2 III;, —_ .,-.:_ fir _ ALCAP DA 'I EDGE OF PAR ' i WELL K.B.0 34 -6 25 I 1 III ¢ # to If ' t I K.B.U. 11 -8Y t p aI/ K.B.U. 41 -6 �> K.B.U. K3 6X K.B.U. 11 - &X 1 !1 Ar. K.B.U, 12 -5 rte., z ' COVIMETE VAULT K.BA . -7X K.B.U. . WfPIPEGUARD 42 -6 • 111 NO IS FZ SECTION 6 . . 6j5 , - • • • - i t I • IJETNOti4t 36' FNL' sl swo K.B.U. 24-6H SECTION 7 7 K.B.U. 33-6 -- c K.B.U. 42 -7 kt fK.B.U.44 -: 889' K.B.U. 32 -7 t; 889 FEL i KENAI GAS NAD 27 ASP ZONE 4 i (NTS) • FIELD N 2361975.39 - PAD 41- 7 E 275022.43 • K.T u 32 -7H LATITUDE: 60 °27'33.912" I P 23.7 X 24 5 `* LONGITUDE: 151 °14'46.888" 1 BLDG 1 4 . LO CONDU TOR 17 1 ' 15 I ,. K.U.13 -5 K.B.U. 41-7 Ul Z HULLOING No. 6 tf 7.! : 1:11 ' , K.B.U. 41 -7X ` O t 1.� x 13 BUILDING No 5 K.U. 43-6 RD ligi BUILDING KU. 43-6X U E►� at K.Q.U.4 ', W 2 TBM SS 16' ® EMERGENCY SHUT K.U. 43 -6A C/'' A 2 • DOWN SWITCH ELECTRIC 9,3' x 15.2' UTIL 12.2' X 15, P" , a H ATER BLDG, CONTROL BL K.U. 24-5 RD 1 K.D,U. 2 a °d FIR E$ " �� WELL HO 11.6'X125' ELECTRICAL 2 H. PAN A22 7,q 11,6' // HEATER _ BUILDING `L, G No 24.4' 24. 24.6' .+ 24,3' , BUILD aG K.U. 11- t s . ta „iX166' 14.0`X ■ BUILDING s / UILDI IJ x la �, �,. • 20 SITE SEPERTOR - • 19 / � I� , . 4 BLDG Na 3 METER a L BLDG No. 1 0 ;\ BLDG. No. 2 1\0' X 6 p'� 'S ti OF A..A 1 #j = ' �P ' j * s' � i — NOTES / 9 1 \ * 1. BASIS OF HORIZONTAL COORDINATES ARE ALASKA STATE PLANE NAD27 As . NOR TI-1 ZONE 4 DETERMINED BY A DIRECT TIE TO USCBGS TRI STA AUORY HAVING A s '- - �� PUBLISHED POSITION OF LAT. 60 °30'50.559' N LONG. 15196'37.445 W I , •. S AN A. McLANE ; / N:2382045.42 E:269866.75 I qg _g 6n.- 2) BASIS OF VERTICAL DATUM (5 MEAN SEA LEVEL. �F 3) SOUTHWEST CORNER SEC. 6 COORDINATES DETERMINED FROM DIRECT � t l , � � SCALE 200 SURVEY TIE TO THE TO EXISTING BLM SECTION CORNER W.C. RECOVERED j h t ; • .. 5;106 s- 0 0 F 0 1 S AND NOT THE PROTRACTED SECTION CORNER VALUES. J 1 1% MARATHON PROJECT REVISION - DATE: KBU 42 -7 WELL ON KGF PAD 41-7 � OIL COMPANY DRAWN BY. JEW it * AS -BUILT SURFACE LOCATION DIAGRAM • ALMA. RBI SCALE. 1 - =tOff NAD27 FOR INFORMATIONAL PURPOSES ONLY PROJECT NO. 0630113 - Consulting Inc ENGINEERING / MAPPING! SURVEYING /TESTING BODKNO. �4 P.O, SOX 4oe SOLOO1NA. AK NM LOCATION SAMCL ANE VOICE. I NE �MCLANECG FAX 1ECOC 3zas EMAIL' SAAIGL S7 T4N R11W SEWARD MERIDIAN, ALASKA SHEET 1 °F 1 .COM • • R 3 2 2 2 N KU d KU N W 14 -32 34 � /� -� � I 7CWDU 1 �1 � v 3 1 N 0� ry 1 M 6 \ 34 2 KU 6111 1 -6 KU A ` KBU 41 -6 b 6 6U 5 KU 0 8 21 -6X O 7 6 DU 6- C now KBU 22 -6 2 6 5 5 •: U_42 -6 ND 11.4 prop les 6 U KT 43 - - • KBU H 6 23X -� . • 6 KBU K •. 'E 4 6 33 -6 8 KU KBU 1 43 -6A KTU 6 ', < -6X y 13 -5 A 1 8, 5 6 5 KTU 6 6 r 24 -6H K: j 24 -6R• 14 KU 3 `� -6RD KDU 6 5 4 6 24 -5 0 KU 3 / 2 3 5 U�2 24 -5RD KDU .'_ N 1 KBU 3 t S Y 8 1 /�1� KBU 3 1�. 24 -6 3 0 O s 6 W.� ..3 • 2 . OIJ KBU M 3 1 -7 2 ; �; D d 7 4. ��i� ► KDU P y 2 2 Kc 1 7 KU 2 W A n 6^ y KBU 1 -7X KU 5 q y \ 31 -7RD D 11 -8 6 P KTU 6 3 2 BU 0 32 -7H 1 ' Y 6 2 -7 6 6 3 KBU 42 -7RD 4 • I I I l l 6 > KT + 3.7 6 4 7 5 KBU 13 -8 KBU 4RD 33 -7 1 6 BU 5 8 -7 6 9 7 .0 :KB • 3 -7X 6 S Marathon Oil Company KBU 24- X 24 -7 6 6 6 A KBU 41 -18X U 14 -8 6 3 © P 11 -17 C \r W D 6 A Beluga /Tyonek PA Kenai Gas Field, Alaska 0.25 mi 0 1111, NORTH I Gas — k t i t 1 - - IPd 33-30 I s P ., - i . ICaIL:°74"-- Lan* --" 1 65-R'l , . - 1P py , ' 1 I i Privet Dad ,, ILI ,,- ,, 2 370000 i * • 1 ''-'"---'----,---=__--- Pad 43-32 if Pad 34-31, = AG,- - Wells_ KENAI GAS FIELD it 1 _..,,. ra"I 6 4 Pits t • • t t .1 ' - ;. i • '''i Er ---------•---- • • ' i ad-33-1 t.. * 11 • • . / Pad 41-7 Pad 14-4 el .e ) - Landing IV'l I , Project Location , . . ■ i Strip 7 8 9 / to 11 , , . Privat*Road , . .0. .1 - n . a _ . , - a . 0 0 Pad 41-18 13 - 16 0 talfe '' •,' ' , , ' ' •-• ' ...e.,..- ... -,I '‘.• , • "›, e ..... COOK INLET PiLdj.,4-18 Abandoned j Landing ft :I 1 , • ., .4 . , • ,..1 . - , _. _ _ ., - 1 I Kenai Unit Boundary i . . , ; • KailltOTAY • 44 — 1 2 ; .• • . :1 . i • ; A.‘ I., C; • i • i•i' , • ' I . 1..../ I ..i..0 • • ; •:\ ; 4 • 1, ' • •' — i l 1 • • • 4 .,,. . , ; 0 ,,,,„ , • • ' • . " ;f• 1 1 Reflectum -,- - 44/FekeW, -t„s-J ' it , t 4,,,..., „ t Kasilof River I , • 1 „, ... ■ 1..i; - I 1 ,-- Landupg .. Strip z ---; Source Map: USGS, 1951 Kenai, Alaska B-4, 1:83,360 SCALE 1 63360 VtAl a Yon con <woo 12000 15000 IF)005 MOM MEI 1 5 n I ? 1 4 *, xitowerERs Marathon Oil Company Kenai Gas Field Area Map 0 maps:K(1F AleaM.PIP. GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT e-a' r6r-11. . 1wr • u 1 t n , 1t0MY 3'X12' I x r 1 1a L D ITA 3106 1 ..........., GENTRIF LIE = . * - - 4 ,fl, 5H 9L 5V 91_ g . �\ A-600 PT A-600 PT IMP 75 HP 75 FP 75 NP 75 FP MIA 3406 '1 �.. ..� ... �/ , 6X • 5 6 X�5 6 X 6 X 3 — k '' •' - � I -I -._ — r I Iw TiOd[ L IEE — _ J u a. 1 a• • I • • ' • • • • • • I 11 BEGASSIER s Iv . el [ g 11 , AGAMIll 1 a !L ,�„ A t i � � 0 ■ k Mil L :isma ■ 1 impe0 am( \ 1 1 I t I t„ 1 , L MD TIM 41 Ms FILL RT MA ATHON Oil Company BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU42 -7 HKGNE8 j Field: Kenai Gas Field (NAD83) Well: KBU42 -7 INEQ �l Facility: Pad 41 -7 Wellbore: KBU42 -7Rd 17 i Plot reference wellpath is KBU42 -7Rd Version #3 True vertical depths are referenced to Glacier #1 RKB (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 RKB (RKB) North Reference: True north Glacier #1 RKB (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 28- Mar -08 Location Information Facility Name Grid East (USft) Grid North (USft) Latitude Longitude Pad 41 -7 1415937.350 2361755.087 60 °27'32.188 "N 151 °14'37.059 "W Slot Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude slot #KBU42 -7 -41.16 - 886.52 1415050.247 2361730.674 60 °27'31.782 "N 151 °14'54.738 "W Glacier #1 RKB (RKB) to Mud line (Facility: Pad 41 -7) 87ft Mean Sea Level to Mud line (Facility: Pad 41 -7) Oft Glacier #1 RKB (RKB) to Mean Sea Level 87ft Well Profile Data Design Comment MD (ft) Inc ( Az ( TVD (ft) Local N (ft) Local E (ft) DLS ( ° /100ft) VS (ft) KOP 4105.00 23.283 150.340 3883.26 - 983.96 577.73 0.00 552.06 End Milled Section 4125.00 25.034 154.353 3901.51 - 991.21 581.52 12.00 556.37 EOC 4774.90 27.563 210.994 4492.94 - 1247.95 563.33 3.75 786.52 Begin Angle Drop 4829.39 27.563 210.994 4541.25 - 1269.56 550.35 0.00 811.73 Middle Beluga (EOD) 5677.47 0.000 268.914 5357.00 - 1441.08 447.31 3.25 1011.82 Lower Beluga 6407.47 0.000 268.914 6087.00 - 1441.08 447.31 0.00 1011.82 Tyonek 7487.47 0.000 268.914 7167.00 - 1441.08 447.31 0.00 1011.82 Tyonek 84 -6 8757.47 0.000 88.914 8437.00 - 1441.08 447.31 0.00 1011.82 TD 8907.47 0.000 88.914 8587.00 - 1441.08 447.31 0.00 1011.82 Hole and Casing Sections Start End Start End Start Start End End Name MD (ft) MD (ft) Interval (ft) TVD (ft) TVD (ft) Local N (ft) Local E (ft) Local N (ft) Local E (ft) Wellbore 17.5in Open Hole 0.00 1750.00 1750.00 0.00 1732.42 0.00 0.00 - 170.01 91.27 KBU42 -7 13.375in Casing Surface 0.00 1750.00 1750.00 0.00 1732.42 0.00 0.00 - 170.01 91.27 KBU42 -7 12.25in Open Hole 1750.00 4105.00 2355.00 1732.42 3883.26 - 170.01 91.27 - 983.96 577.73 KBU42 -7 9.625in Casing Intermediate 0.00 4105.00 4105.00 0.00 3883.26 0.00 0.00 - 983.96 577.73 KBU42 -7 8.5in Open Hole 4105.00 8907.47 4802.47 3883.26 8586.99 - 983.96 577.73 - 1441.08 447.31 KBU42 -7Rd 3.5in Casing Production 0.00 8907.47 8907.47 0.00 8586.99 0.00 0.00 - 1441.08 447.31 KBU42 -7Rd Targets Name MD (ft) TVD (ft) Local N (ft) Local E (ft) Grid East (USft) Grid North (USft) Latitude Longitude KBU42 -7Rd Middle Beluga (NAD83) 27- Mar -08 5677.47 5357.00 - 1441.08 447.31 1415470.14 2360281.44 60 °27'17.590 0 N 151°14'45.819"W KBU42 -7Rd Lower Beluga (NAD83) 27- Mar -08 6407.47 6087.00 - 1441.08 447.31 _ 1415470.14 2360281.44 60 0 27'17.590 "N 151°14'45.819"W KBU42 -7Rd Tyonek (NAD83) 27- Mar -08 7487.47 7167.00 - 1441.08 447.31 1415470.14 2360281.44 60 °27'17.590 "N 151°14'45.819"W K6U42 -7Rd Tyonek 84 -6 (NAD83) 27- Mar -08 8757.47 8437.00 - 1441.08 447.31 1415470.14 2360281.44 60 ° 27'17.590 "N 151°14'45.819"W KBU42 -7Rd TD (NAD83) 27- Mar -08 • 8907.47 8587.00• - 1441.08 447.31 1415470.14 2360281.44 60 0 27'17.590 "N 151 014'45.819 "W MeRATHON Oil Comp BA //�� Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KB HUGHLS Field: Kenai Gas Field (NAD83) Wet: KBU42 -7 MARATHON Facility: Pad 41 -7 Wellbore: KBU42 -7Rd INTEQ Plot reference wellpath is KBU42 -7Rd Version #3 True vertical depths are referenced to Glacier #1 RKB (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 RKB (RKB) North Reference: True north Glacier #1 RKB (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 28- Mar -08 3750 11 v 9.625in Casing Intermediate Easting (ft) 23.28° a_- KOP sc.,. 1 Inch = 100 11 End Milled Section 300 350 400 450 500 550 600 650 700 750 1 1 1 1 1 1 1 1 1 4125 — -850 • 23.41° 3.75 ° /100ft 26.55° -900 4500 E Begin Angle Drop +0.72° 4875 3.25 ° /100ft — -950 10.97° 9 5/8" Casing Intermediate ) � KOP End Milled Section 5250 — -1000 L 1'22° .■ Middle Beluga (EOD) KBU42 -7Rd Middle Beluga (NAD83) 27- Mar -08 5625 — -1050 6000 — -1100 • Lower Beluga KBU42 -7Rd Lower Beluga (NAD83) 27- Mar -08 r 6375 — -1150 a 4) 0 E 6750 — -1200 _ N 2 ~ EOC — -1250 7125 Tyonek KBU42 -7Rd Tyonek Begin Angle Drop (NAD83) 27- Mar -08 7500 c �Jp -1300 y k- 7875 — -1350 8250 — -1400 Tyonek84 -6 KBU42 -7Rd KBU42 -7Rd Tyonek 84-6 NAD83) 27- Mar -08 7D - 3 1/2" Casing Production TD 8625 3 1/2" Casing Production KBU42 -7Rd TD KBU42 -7Rd Middle Beluga (NAD83) 27 -Mar -08 - -1450 KBU42 -7Rd (NAD83) 27- Mar -08 KBU42 -7Rd Lower Beluga (NAD83) 27- Mar -08 KBU42 -7Rd Tyonek (NAD83) 27- Mar -08 KBU42 -7Rd Tyonek 84-6 (NAD83) 27 -Mar -08 KBU42 -7Rd TD (NAD83) 27 -Mar-08 9000 — -1500 9375 — -1550 — -1600 9750 375 750 1125 1500 18 Vertical Section (ft) Planned Wellpath Geo • raphic Report Report Generated 28- Mar -08 at 13:27:17 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US fe- - Operator !, MARATHON Oil Company North Reference True - -- , - . Area _- vim, t Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999958 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility - - Pad 41 -7 Vertical Reference Point Glacier #1 RKB (RKB) Slot I slot #KBU42 -7 MD Reference Point Glacier #1 RKB (RKB) Well KBU42 -7 Field Vertical Reference Mean Sea Level Wellbore lir iiiimummr KBU42 -7Rd Glacier #1 RKB (RKB) to Facility Vertical Datum 87.00 ft Wellpath ". KBU42 -7Rd Version #3 Glacier #1 RKB (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 111111 03/28/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from 11111 KBU42 -7 at 4105.00 MD Section Origin X E 0.00 ft User ',''�„ ,. ,.... ., . Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section Azimuth 210.64° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] -- -__ - -- Slot Location 1111M1.110 - 886.52 1415050.25 2361730.67 60 °27'31.782 "N 151°14'54.738'W Facility Reference Pt 1111.12fici 2361755.09 60 °2732.188 "N MIIIIIN Field Reference Pt MIELESMEIMINIM=MIIIM=EMEEE 60 °27'31.931 "N 151 °16'16.783 "W * NAD 83 coordinates are converted to NAD 27 using orpscon 6.0.1 (US Army Corps of Engineers) TVD from MD Inclination Azimuth TVD Fid Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [ 1 t [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [`I100ft] ['] [ °I100ft] [`I100ft] [ft] - 0.00 0.00 MEM 0.00 -87.00 0.00 0.00 1415050.25 2361730.67 MIMI 2361969.206 r60 °27'31.782 "N 151 °14'54.738"W 0.00 -29.90 0.00 0.00 0.00 181.00 11.0211111MME 181.00 94.00 WEIMINIXO. 1415049.83 2361731.44 275029.693 2361969.976 60 °27'31.790 "N IMMEIRSZEIKEIENSMEMDEM 0.00 MatIMIIIIM 284.00 ME= 256.60 208.40 283.99 196.99 ®� 1415049.32 '} 1 2361970.346 60 °27'31.793 "N ����� 404.00 MEM �MEDIMINUMIE 1415047.67 2361729.38 El= 2361967.916 60 °27'31.769 "N 151 °14'54.789"W MEEMENEEMIMEMMEMEIMEIMill. 524.00 MR= 199.20 Minam 436.66 -8.90 mum 1415044.43 2361721.88 El= 2361960.417 60 °27'31.695 "NMEEMINEEM®MSEEIMEIECE 613.00 6.96 197.40 ®MINEM -8.60 MOMMEMMEMMIErMan 2361951.487 60 °27'31.606"N 1 51 °14'54.909 "W INIMMECIMMOMM®i 704.00 WERII®"®IMEMEMEMEMIESIEM 1415038.60 2361701.26 MI= 2361939.797 60 ° 27'31.490 "N 151 °14'54.959 "WIMM -90.20 =Km -10.99 825.00 MEM 167.60 .2321.1.5003MBEMMEEMIII=Ea 2361683.62 ISEMIEUE=311MBEEM 151°14.54 IMEMEMEMIMMIESEEMILIEM 952.00 IMIIMMEMEICRIM 860.63 IIMMIEMEMEMEEEll 2361665.91 ® 60 °27.31.144"N IMIREIMEIMECOMMEIORIMIXIMIESEXIIIIIINEM 1074.00 1068.31 MIME= -79.06 MIEM 1415056.03 2361651.50 275035.892 2361890.038 60 °27'31.004 "N 151°14'54.593"W MEMEMIEMBIEXEMEMEINCIEM 1170.00 M E E N I M E E M E M E I D D E E M E M E . -89.18 IIMBEM 1415065.72 2 3 6 1 6 4 1 . 1 9 ' ® 2361879.728 60 °27'30.904 "N 151 °14'54.396"W r r 0.06 MEMMIEEEM 1293.00 1.11M=IMMEMIEMINIMMEMEIMEMMErEM 1415079.11 2361628.05 '®' ' 2361866.588 60 °27'30.777"N 151 ° 14'54.1241111/0121. 0.46 IMEIELI® 1421.00 MECEINIMMEEMEMMII®' 46.09 1415094.12 2361613.20 ®f 60 °2730.634 "N 151°14 r 10.90 ®' u mumErnEmsmi® 1415105.06 2361600.69 EFE=Il 2361839.228 60 °27'30.513 "N 151°14'53.596"W MEZIMEMBEEMMEgM 0 1f3.80 MEM 1610.00 MEMIIIIMEM 1596.44 r®' '" IMMINW 2361585.50 275098.103 2361824.038 60 °2730.365 "N IMEMENEI®MENI4MM 1706.00 MaM®' 1689.77 MIEMEEMENEM 85.04 IIMMERE 2361567.92 ® 2361806.458 60 °27'30.195 "N 151 °14'53.042"WMIEMMEEMEICEMEMEMICZEill 1806.00 MUM 148.10 1786.61 1699.61 - 181.84 98.97 1415145.75 2361547.00 uomamamenn 60 °27'29.992 "N 151 °14'52.764"WEIREMMEEMMERIMMEM 106.00 1899.00 148.00 1876.30 1789.30 MIKEMIEMBEM 1415158.37 2361525.89 ErM20 2361764.429 60 °2729.786 "N IMMEMEM® :®r IEMEMMIMIM® 2024.00 MK= 148.90 1995.94 1908.94 ®IMEMMEMMlinin 2361494.68 EMEIMIEMMEI 60 ° 27'29.482 "N ®NEWEIMMEMENCIEMEIMEMI IEMMEIMECEM 149.60 2116.00 2029.00 111EMEMMEEEMMECMEE 2361458.73 15=1 2361697.269 60 °27'29.132 "N 151 °14'51.706"W miimmEggimErmwimagmE imaimom 149.50 ®MICERE - 307.90 INIZIEME1=11.5=1 275199.083 2361658.07 60 °2728.750 "N ®EISME® -0.08 MOM 2401.00 MM. 146.80 2347.40 2260.40 - 349.96 WEIMINMEMEM 2361376.98 EMMIBEi=1 60 °27'28.336 "N 151 EIBEIMMEME®MEM 198.62 IMMEMEMEIN 148.70 2462.49 EMEEEEINENEM 229.84 IMESMIIIIMEMI® 2361569.58 60 ° 27'27.889 "N ® EBEEMEM®i ®i 2590.00 26.00®' MEMEMINEEMBEEMEEMIEME 1415286.59 2361307.89 EMEXEIEMEIM 60 °2727.663 "N 151°14'49.866"W MIUMMOSEM r r MEEM®i WEEFEEMEZEIMMICEEMEMEZIEMEM - 465.08 274.68 1415316.05 2361260.49 131=11 2361499.031 60 °27'27.202 "N 151 °14'49.261"W r :r - 126.89 'MEEMINIEXEMMIIIIIN 2841.00 IMMOZEI®r MEMEMEMEM® 303.66 1415344.15 MEE=1®' 60 °2726.749 "N 151°14'48.683"W MEZEIMEINIEMEIMEM 284.95 2935.00 IMEIMEMMIMMMEIMEERMIMPIEMMERCM 1415365.74 2361178.91 ®'' 60 °2726.408"N 151 °14'48.239 "WMIXIMMEINIMMEIMMIEMEM 3028.00 MElim 148.60 MEMEIMMEIGEM - 580.42 IIIMEM 1415386.89 2361143.79 EMMIEMEMa 60 °2726.066 "N 151 °14'47.804 "W r®: -98.98 IMEMMMEM® 3091.00 NM= 146.70 2968.22 WM. - 603.96 362.64 ®r 2361119.98 Ea=r1EED=1 60 °2725.834 "N 1111100.11111MEMOMMEMMEMEM 3124.00 IllEMMEIMORM 2997.86 2910.86 IM 1415409.00 2361107.66 275388.864 2361346.202 151°14'47.350"W ® 64.08 MnIEEIUIIEIEMMEIEIMIIIMIMIIIMIM 3218.00 imam 148.60 IMEMEEMIMINEMUMMEMEMI 1415430.18 ISIMMISIZE=1E=1 60 °2725.369 "N 151 °14'46.914"W mazw®mga®minggi 3340.00 INEMEMMME 3192.06 3105.06 MEM 418.97 1415455.90 IMEMSEEZZEMEE=1 60 °2724.915 "N 151 °1446.384 "W MEM 0.00 WEEMINEEMERIMIIIIMIIII 3403.00 NIMEMMIEME 3248.80 3161.80 11163,1MEMill 1415468.51 2361001.26 igi=21 2361239.803 60 ° 2724.678 "N 151 °14'46.123 "W 0.49 -99.09 0.49 0.00 400.42 3530.00 NM= 150.60 111=1111=11 - 769.90 MEM 1415494.42 2360952.24 EMMEI 2361190.783 60 °2724.200 "N 151°14'45.588"W 11113MIEMIEWEEMIMIZEI 15428.49 3593.00 26.09 ®' 3419.69 MM. - 794.03 MM. 1415507.36 2360927.87 EfaMMI 2361166.414 60 °27'23.963 "N EMEMIIMME 180.00 MIM® 442.41 3657.00 .1* - 818.61 INEMENEMME 2360903.04 EIMMZIE=I 60 °27'23.720 "N 151°1445.052"W IIKEIMMEMEMEEM 0.00 IIREMEMERIMMEMMEZEIMIEZEME - 854.85 505.69 MEM= 2360866.43 Ea= 2361104.974 60 °27'23.364 "N 151°14'44.654"W IlialiM - 140.95 -0.09 111110MEMISMIIIIIMIIIMIE 3846.00 ® r INESEEMEMM - 890.18 MEMO 1415558.85 2360830.73 INEE=1 2361069.275 60 °2723.016 "N 151 °14'44.258'W r®: ® 497.95 3910.00 MEMINIESIECEEMEM 3618.48 ®' MEMEINEEEME 2360806.65 ® 2361045.195 60 °2722.781 "N 151 °14'43.996 "WMIXEMMEMIMUM®MBIEM 3973.00 Z I I ; I 1415583.60 2360783.18 EMEEMEMMIIMSEMSB 151°14 WEEMMISESEMNIKEMI 4034.00 INEMEMMEEM 3818.26 -959.16 wpm 1415595.50 2360761.05 EZINEM 2360999.595 60 °2722.336 "N 151 °14'43.501 "W®®ME9 4096.00 ® I 3875.00 3788.00 - 980.86 MUM 1415607.48 2360739.12 Ea=13 2360977.666irlinglEMEMEROMMIEMENEMEIMIEMOMMEMI 4100.00 23.42 150.32 3878.67 3791.67 - 982.24 576.75 1415608.25 2360737.72 275588.115 2360976.266 60 °27'22.109 "N 151 °14'43.238 "W 2.64 176.13 -2.64 0.45 551.08 4105.00 23.28 150.34 3883.26 3796.26 - 983.96 577.73 1415609.20 2360735.98 275589.065 2360974.526 60 °27'22.092 "N 151°14'43.218'W 0.00 45.00 -2.64 0.45 552.08 4125.00 25.03 154.35 3901.51 3814.51 - 991.21 581.52 1415612.85 2360728.66 275592.715 2360967.206 60 °27'22.021 "N 151 °14'43.143 "W 12.00 110.51 8.76 20.06 556.37 4200.00 MEM 160.79 3969.71 IMRE - 1020.03 1.2=1.0=1 2360699.62 U=1 2360938.166 ENEMEMI 151°14'42.905'W ® 104.66 ®MI9EMENI 4300.00 MEM 169.93 4061.20 3974.20 - 1059.02 603.67 MEIMME 2360660.45 EICEEM 2360898.997 IIMEIREMI 151°14'42.701"W ® 96.30 -0 IMEEM* 4400.00 ®MEEM 4152.99 4065.99 - 1098.49 607.38 1415636.67 2360620.91 1=3E= 60 °27'20.964 "N 151 ° 14'42.627'W® 87.64 MIEMIIILEMWEIZE 4500.00 Mum 188.68 ICEMIZEIMEMETIME 604.56 1415633.09 2360581.18 EMIBM 2360819.729 60 °27'20.572 "N ®®' IIEIEEMIIKEEIMIINEE Planned Well • ath Geo • raphic Report Report Generated 28- Mar -08 at 13:27:17 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US fez Operator MARATHON Oil Company North Reference True Area Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999958 Field Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility Pad 41 -7 Vertical Reference Point Glacier #1 RKB (RKB) Slot slot #KBU42 -7 MD Reference Point Glacier #1 RKB (RKB) Well KBU42 -7 Field Vertical Reference Mean Sea Level Wellbore K8U42 -7Rd Glacier #1 RKB (RKB) to Facility Vertical Datum 87.00ft Wellpath KBU42 -7Rd Version #3 Glacier #1 RKB (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 03/28/2008 Facility Vertical Datum to Mud Lint[Facility) 0.00 ft Sidetrack from KBU42 -7 at 4105.00 MD Section Origin X E 0.00 ft User Jonethoh Section Origin Y N 0.00 ft Calculation method Minimum curvature Section ion Azimuth _ -- 210.64° -- - - - - - L -- - - -- -- - --- Local North Local East Grid East Grid North Latitude Longitude (kJ [ft] [USft] [USft] Slot Location -41.16 - 886.52 1415050.25 2361730.67 60 °27'31.782 "N 151 °1454.738 "W Facility Reference Pt - 1415937.35 2361755.09 60 °27'32.188 "N 151 ° 14'37.059"W Field Reference Pt - 1410937.15 2361824.52 60 °27'31.931 "N 151 °16'16.783"W " NAD 83 coordinates are converted to NAD 27 using 1,01 pscun :,.i1. IUS Army OorNS ,! tnyinecrsi TVD from - MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] ["] ['] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] - - ] [ °iloof [ "] [ " /looft] [ °ilooft] [ »] 4600.00 24.77 197.49 4335.84 4248.84 - 1178.23 595.22 1415623.00 2360541.42 275602.864 2360779.97 60 ° 2770.179"N 151 °1442.870 "W 3.75 71.06 0.97 8.82 710.29 4700.00 26.22 205.54 4426.13 4339.13 - 1218.16 579.39 1415606.42 2360501.80 275586.283 2360740.351 60 °2719.786"N 151 °1443.185"W 3.75 63.79 1.44 8.05 752.71 4774.90 27.56 210.99 4492.94 4405.94 - 1247.95 563.33 1415589.80 2360472.33 275569.662 2360710.883 60 °27'19.492 "N 151 °14'43.506"W 3.75 0.00 1.80 7.28 786.52 4800.00 27.56 210.99 4515.20 4428.20 - 1257.90 557.35 1415583.63 2360462.49 275563.492 2360701.043 60 °2719.394 "N 151 °14'43.625"W 0.00 0.00 0.00 0.00 798.13 4829.39 27.56 210.99 4541.25 4454.25 - 1269.56 550.35 1415576.40 2360450.97 275556.262 2360689.524 60 ° 2719.279 "N 151 °1443.764"W 0.00 180.00 0.00 0.00 811.73 4900.00 25.27 210.99 4604.48 4517.48 - 1296.49 534.17 1415559.72 2360424.35 275539.581 2360662.905 60 °2719.014 "N 151 °1444.087"W 3.25 180.00 -3.25 0.00 843.14 5000.00 22.02 210.99 4696.08 4609.08 - 1330.86 513.52 1415538.43 2360390.38 275518.291 2360628.936 60 °2718.676 "N 151 °1444.499"W 3.25 180.00 -3.25 0.00 883.24 5100.00 18.77 210.99 4789.80 4702.80 - 1360.72 495.58 1415519.92 2360360.86 275499.78 2360599.417 60 °2718.382 "N 151 ° 1444.856"W 3.25 180.00 -3.25 0.00 918.08 5200.00 15.52 210.99 4885.34 4798.34 - 1385.99 480.41 1415504.27 2360335.89 275484.129 2360574.449 60 °27'18.133 "N 151 ° 14'45.159"W 3.25 180.00 -3.25 0.00 947.55 5300.00 12.27 210.99 4982.40 4895.40 - 1406.57 468.04 1415491.52 2360315.55 275471.379 2360554.109 60 °2717.930"N 151 ° 1445.406"W 3.25 180.00 -3.25 0.00 971.56 5400.00 9.02 210.99 5080.67 4993.67 - 1422.40 458.54 1415481.71 2360299.90 275461.569 2360538.46 60 °2717.774 "N 151 ° 14'45.595 "W 3.25 180.00 -3.25 0.00 990.03 5500.00 5.77 210.99 5179.83 5092.83 - 1433.43 451.91 1415474.88 2360289.00 275454.738 2360527.561 60 °2717.666 "N 151 °14'45.727 "W 3.25 180.00 -3.25 0.00 1002.89 5600.00 2.52 210.99 5279.55 5192.55 - 1439.62 448.19 1415471.05 2360282.88 275450.908 2360521.441 60 °2717.605"N 151 °1445.802"W 3.25 180.00 -3.25 0.00 1010.11 5677.47 0.00 268.91 5357.00 5270.00 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 ° 1445.819"W 3.25 0.00 -3.25 0.00 1011.82 5700.00 0.00 268.91 5379.53 5292.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °14'45.819'W 0.00 0.00 0.00 0.00 1011.82 5800.00 0.00 268.91 5479.53 5392.53 - 1441.08 447.31 1415470.14 2360281.44 _275449.998 2360520.001 60 °27'17.590 "N 151 °1445.819"W 0.00 0.00 0.00 0.00 1011.82 5900.00 0.00 268.91 5579.53 5492.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 ° 14'45.819"W 0.00 0.00 0.00 0.00 1011.82 6000.00 0.00 268.91 5679.53 5592.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °1445.819'W 0.00 0.00 0.00 0.00 1011.82 6100.00 0.00 268.91 5779.53 5692.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °14'45.819 "W 0.00 - 0.00 0.00 0.00 1011.82 6200.00 0.00 268.91 5879.53 5792.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 0.00 0.00 0.00 1011.82 6300.00 0.00 268.91 5979.53 5892.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °1445.819"W 0.00 0.00 0.00 0.00 1011.82 6400.00 0.00 268.91 6079.53 5992.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °14'45.819"W 0.00 0.00 0.00 0.00 1011.82 6407.47 0.00 268.91 6087.00 6000.00 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 ° 1445.819"W 0.00 -91.09 0.00 0.00 1011.82 6500.00 0.00 268.88 6179.53 6092.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 ° 14'45.819"W 0.00 0.04 0.00 0.00 1011.82 6600.00 0.00 268.91 6279.53 6192.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 0.01 0.00 0.03 1011.82 6700.00 0.00 268.89 6379.53 6292.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °14'45.819"W 0.00 0.03 0.00 -0.02 1011.82 6800.00 0.00 268.92 6479.53 6392.53 - 1441.08 447.31 1415470.14 2360281.44 275449.996 2360520.001 60 °2717.590"N 151 °1445.819"W 0.00 -0.01 0.00 0.03 1011.82 6900.00 0.00 268.91 6579.53 6492.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 0.00 0.00 -0.01 1011.82 7000.00 0.00 268.91 6679.53 6592.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °1445.819"W 0.00 0.00 0.00 0.00 1011.82 7100.00 0.00 268.92 6779.53 6692.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °1445.819"W 0.00 -0.01 0.00 0.00 1011.82 7200.00 0.00 268.92 6879.53 6792.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °14'45.819"W 0.00 0.00 0.00 0.00 1011.82 7300.00 0.00 268.92 6979.53 6892.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 -0.02 0.00 0.00 1011.82 7400.00 0.00 268.92 7079.53 6992.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °27'17.590 "N 151 °14'45.819"W 0.00 -0.02 0.00 0.00 1011.82 7487.47 0.00 268.91 7167.00 7080.00 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 180.00 0.00 0.00 1011.82 7500.00 0.00 268.91 7179.53 7092.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °27'17.590 "N 151 ° 14'45.819"W 0.00 180.00 0.00 0.00 1011.82 7600.00 0.00 268.91 7279.53 7192.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 - 180.00 0.00 0.00 1011.82 7700.00 0.00 268.91 7379.53 7292.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 27'17.590 "N 151 °1445.819"W 0.00 - 180.00 0.00 0.00 1011.82 7800.00 0.00 268.91 7479.53 7392.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 1445.819"W 0.00 - 180.00 0.00 0.00 1011.82 7900.00 0.00 268.91 7579.53 7492.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 - 180.00 0.00 0.00 1011.82 8000.00 0.00 268.91 7679.53 7592.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590"N 151 °14'45.819'W 0.00 - 180.00 0.00 0.00 1011.82 8100.00 0.00 268.89 7779.53 7692.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 - 179.98 0.00 -0.02 1011.82 8200.00 0.00 88.93 7879.53 7792.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °14'45.819"W 0.00 -0.02 0.00 - 179.96 1011.82 8300.00 0.00 88.92 7979.53 7892.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 ° 1445.819 "W 0.00 -0.01 0.00 -0.01 1011.82 8400.00 0.00 88.91 8079.53 7992.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °1445.819 "W 0.00 0.01 0.00 -0.01 1011.82 8500.00 0.00 88.92 8179.53 8092.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 ° 2717.590 "N 151 °14'45.819"W 0.00 0.00 0.00 0.00 1011.82 8600.00 0.00 88.92 8279.53 8192.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °27'17.590 "N 151 ° 1445.819"W 0.00 -0.01 0.00 0.00 1011.82 8700.00 0.00 88.92 8379.53 8292.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 ° 14'45.819"W 0.00 -0.01 0.00 0.00 1011.82 8757.47 0.00 88.91 8437.00 8350.00 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 14'45.819"W 0.00 0.00 0.00 0.00 1011.82 8800.00 0.00 88.91 8479.53 8392.53 - 1441.08 447.31 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °1445.819"W 0.00 0.00 0.00 0.00 1011.82 Planned Wellpath Geo • raphic Report Report Generated 28- Mar -08 at 13:27:17 Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US fe= Operator MARATHON Oil Company North Reference True Area " -, , -- .mom. -- . _ .. ,,._ Cook Inlet, Alaska (Kenai Penninsula) Scale 0.999958 Field A -i _ Kenai Gas Field (NAD83) Horizontal Reference Point Slot Facility • Pad 41 -7 Vertical Reference Point Glacier #1 RKB (RKB) Slot ':w. slot #KBU42 -7 MD Reference Point Glacier #1 RKB (RKB) Well = - KBU42 -7 Field Vertical Reference - - Mean Sea Level Wellbore IIPIPIIIIIIIIIIIIIIIIIIMIIIII KBU42 -7Rd Glacier #1 RKB (RKB) to Facility Vertical at 87.00 ft Wellpath IIIIIIIIMIIIIIIIIII KBU42 -7Rd Version #3 Glacier #1 RKB (RKB) to Mean Sea Level 87.00 ft Wellbore Last Revised 03/28/2008 Facility Vertical Datum to Mud Line (Facility) 0.00 ft Sidetrack from KBU42 -7 at 4105.00 MD Section Origin X E 0.00 ft User IIIMEIMINIENJonethoh Section Origin Y N 0.00 ft Calculation method ''"F' _ Minimum curvature Section Azimuth 210.64° Local North Local East Grid East Grid North Latitude Longitude [ft] [ft] [USft] [USft] Slot Location 111111111.23 - 886.52 1415050.25 2361730.67 60 °27'31.782 "N 151 ° 14'54.738 "W Facility Reference Pt , 2361755.09 60 °27'32.188 "N 151 Field Reference Pt __ _ - __ t _ _� „" - 60 °27'31.931 "N 151 * NAD 83 coordinates are converted to NAD 27 using Corpscon 6.0.1 (Us Army Corps o Engineers) TVD from MD Inclination Azimuth TVD Fld Ref North East Grid East Grid North Latitude Longitude DLS Toolface Build Rate Turn Rate Vert Sect Comments [ft] [°] [°] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ °I100ft] [°] [ ° /100ft] [ ° /100ft] [ft] 8900.00 0.00 88.91 KIMEMIIMEME=IMEBEEM 1415470.14 2360281.44 EEE=I 2360520.001 60 °2717.590 "N 151 °14'45.819 "W 0.00 0.00 0.00 0.00 8907.16 0.00 88.91 8586.68 8499.68 - 1441.08 MEM 1415470.14 2360281.44 275449.998 2360520.001 60 °27'17.590 "N 151 °14'45.819 "W 0.00 0.00 0.00 0.00 t®. . 8907.47 0.00 88.91 8587.00 8500.00 - 1441.08 mu= 1415470.14 2360281.44 275449.998 2360520.001 60 °2717.590 "N 151 °14'45.819 "W 0.00 0.00 0.00 0.00 r®. ✓ ✓ 0 Planned Well path Report I KBU42 -7Rd Version #3 HUGHES MARATHON Page 1 of 6 REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Facility Pad 41 -7 Sidetrack from KBU42 -7 at 4105.00 MD REPORT SETUP INFORMATION Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference ®� - Jonethoh Scale 0.999958 Report Generated 28- Mar -08 at 09:21:49 !Convergence at slot 1.09° West Database /Source file WA_Anchorage /KBU42- 7Rd.xml WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location -41.16 - 886.52 1415050.25 2361730.67 60 0 27'31.782 "N 151 0 14'54.738 "W Facility Reference Pt 1415937.35 2361755.09 60 °27'32.188 "N 151 °14'37.059 "W Field Reference Pt I 1410937.15 2361824.52 I 60°27'31.931"N 151°16'16.783"W WELLPATH DATUM Calculation method Minimum curvature Glacier #1 RKB (RKB) to Facility Vertical Datum 87.00ft Horizontal Reference Pt Slot Glacier #1 RKB (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 RKB (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 RKB (RKB) Section Origin N 0.00, E 0.00 ft 'Field Vertical Reference Mean Sea Level Section Azimuth 210.64° AA Planned Wellpath Report BAKER KBU42 -7Rd Version #3 HUES MARATHON Page 2 of 6 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 - Field Kenai Gas Field (NAD83) Wellbore KBU42 - 7Rd Pad 41 Sidetrack from KBU42 -7 at 4105.00 MD WELLPATH DATA (101 stations) MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Toolface Build Rate Turn Rate Comments [ft] [0] [ [ft] ft ft [ft] [sry ft [sry ft [ °/100ft] [ [ ° /100ft] [ ° /100ft] 0.00 0.000 330.100 0.00 0.00 0.00 0.00 1415050.25 2361730.67 0.00 -29.90 0.00 0.00 181.00 0.550 330.100 181.00 - 0.43 0.75 -0.43 1415049.83 2361731.44 0.30 - 147.24 0.30 0.00 -0.48 1.12 -0.95 1415049.32 284.00 0.310 256.600 283.99 - - 2361731.81 0.53 -53.74 -0.231 - 71.36 404.00 2.590 208.400 403.95 2.46 -1.34 -2.56 1415047 67 2361729.38 2.00 -17.95 1.901 -40.171 i I 613.00 6.961; 197.400 612.15 19.77 -17.89 -8.60 1415041.31 2361712.95 1.94 -50.56 1.931 -2.021 704.00 8.260 187.400 702.35 31.15 - 29.63 -11.09 1415038.60 2361701.26 2.03 -90.20 1.431 - 10.99 825.00 8.760 167.600 822.05 45.87 -47.26 -10.23 1415039.12 2361683.62 2.44 - 104.26 0.41 - 16.36 952.00 8.500 150.100 947.63 57.56 -64.84 -3.47 1415045.55 2361665.91 2.07 -98.77 - 0.20 -13.78 1170.00 8.500 135.800 1163.27 67.97 -89.18 17.16 1415065.72 2361641.19' 0.07 -53.89 0.06 0.21 1293.00 9.070 131.100 1284.83 72.11 - 102.07 30.81 1415079.11 2361628.05 0.74 45.04 0.46 -3.82 1421.00 9.930 135.900 1411.07 76.84 - 116.62 46.09 1415094.12 2361613.20 0.91 34.85 0.67 3.75 1513.00 10.901 139.400 1501.55 81.73 -128.93 57.27 1415105 06 2361600.69 1.26 -15.42 1.05 3.80 �� 6 tt 1" �I� a _ I 1706.00 14.070 143.800 1689.77 95.32 - 161.18 85.04 1415132.21 2361567.92 ! 2.02 57.49 ! 1.07 7.29 1806.00 14.810 148.100 1786.61 106.00 - 181.84 98.97 1415145.75 2361547.00 1.30 -1.49 0.74 4.30 1899.00 15.860 148.000 1876.30 117.32 - 202.71 111.99 1415158.37 2361525.89 1.13 8.05 1.13 -0.11 I! • 2024.00 17.810 148.900 1995.94 134.22 130.92 1415176.71 2361494.68 1.57 5.76 1.56 0.72 X I 5 2361458; „ - 1 � r , ] 1. � ,i' r ;'� -i r 1511 41. 2275.00 22.330 149.500 2231.55 175.77 307.90 174.85 1415219.22 2361419.53 1.71 -33.85 1.71 -0.08 23.990 146.800 2347.40 198.62 - 349.96 201.03 1415244.59: 2361376.98 1.56 22.45 1.32 -2.14 2401.00 2528.00 26.020 148.700 2462.49 223.10 - 395.37 229.64 1415272.34: 2361331.04 1.72 92.19 1.60 1.50 2590.00 26.000 145.900 2518.21 235.30 - 418.24 244.32 1415286.59 2361307.89 1.98. 82.59 -0.03 -4.52 -, ,;- .r iii . - d -� " a,Ar.�,ra� ^fir �i d ll °�gd' '.F�w P;b y ,.i4. ,. rr 14 .,1 -. ials 'k tM t , i , ; .. I , ✓�' C�, . ire -:. 6 �' ` :' x ' ; s m i',1r u l u 2841.00 25.890 147.400 ���� 2743.72 - .._ � � � � � � � �. � ^� „. -- � � m ti� � ��i,�� �:. >~� � , ,u�� a ,lr ��, ..�'� � 6����, ^^ �� 284 95 511.11 303 66 1415344.15 2361213.921 0.35 -47.70 -0.21 -0.65 2935.00 1 26.0101 147.100 2828.24 303.37 ; - 545.71 325.91 1415365.74 2361178.91 0.19 66.27 0.131 - 0.32 3028.00 26.310 148.600 2911.72 322.12 - 580.42 347.73 _ 1415386.89 2361143.79 0.78 - 98.98 0.32 1.61 1 3091.00 26.190 146.700 2968.22 _ 334.77 603.96 362.64 1415401.35 2361119.98 1.35 125.78 -0.191 -3.02 Planned ort ath ell Re - W p Report Version #3 BAKER HUGHES MARATHON Page 3 of 6 INTEQ REFERENCE WELL PATH IDENTI FICATION Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 - 7Rd Facility Pad 41 7 Sidetrack from KBU42 -7 at 4105.00 MD WELLPATH DATA (101 stations) t = interpolated/extra olated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Toolface Build Rate Turn Rate Comments Ift] 1 01 [ °1 [ [ft] ft ft] sry ft [sry ft] [ °/100ft] [ °] [ ° /100ft] [ ° /100ft] 3218.00 26.180 148.600 3082.31 360.23 - 651.17 392.36 1415430.18 2361072.21 0.57 115.53 0.26 1.17 3340.00 25.610 151.5001 3192.06 386.37 -697.31 418.97 1415455.90 2361025.57 1.14 0.00 -0.47 2.38 1 3403.00 1 25.920 151.5001 3248.80 400.42 - 721.38 432.03 1415468.51 2361001.26 0.49 -99.09 0.49 0.00 1 3530.00 25.860 150.600 3363.05 428.49 - 769.90 458.87 1415494.42 2360952.24 0.31 53.44 0.05 0.71 u �• �_ 151. " �ti7 s' 0 ",1i ... 1t0.0Q �� +I 9:' + 3657.00 25.860 . 300 3477.23 456.70 - 818.61 i 485.73 1415520.35 2360903.04_ 0.36 - 124.70 1 -0.36 0.00 3752.00 25.770 151.000 3562.74 477.70 - 854.85! 505.69 1415539.62 2360866.43 0.17 - 140.95 - 0.09 -0.32 3846.00 1 25.350 150.200 3647.55 497.95 -890.18 525.60 1415558.85 2360830.73 0.58 1 115.55 -0.45 -0.851 1 3910.00 24.960 152.2001 3705.48 511.78 - 914.02 538.71 1415571.51 2360806.65 , 1.46 - 127.70 -0.61 3.13 4034.00 24.030 150.200 3818.26 537.95 - 959.16 ! 563.56 1415595.50 ! 2360761.05 1.13 175.53 -0.95 -1.48 4096.00. 23.520 150.300 3875.00 550.29 -980.86 575.96 1415607.48 2360739.12 0.83 176.15 -0.82 0.16 4100.00 23.415 150.318 3878.67 551.08 - 982.24 576.75 1415608.25 2360737.72 2.64 176.13 -2.64 0.45 4105.00 23.283 150.340 3883.26 552.06 - 983.96 ;; 1415609.20 2360735.98 0.00 45.00 2.64 0.45KOP 4200.00 24.183 16 60 794 -' 3969.71 575.09 _- 1020.03 593.44 1415624.22 2360699.62 3.75 104.66 -1.13 8.59 4400.00 ' 23.370' 179.357 4152.99 635.49 -1098.49 607.38 , 1415636.67 , 2360620.91 3.751 87.64 0.13 9.43 4500.00f 23.804 188.675 4244.67 671.16 - 1138.29 604.56 1415633.09 2360581.18 3.751 79.10 0.43 9.32 t tIM" qr...� ^I, 1 ��W V'', li ,� '" a.f.. 'm ' III 4':'Y s, .� - ! ,.i irc -, � I � � �'S 5. 2 156'23.',0 6 5 a4 3� �� � 71.:06 � 0• � I� � "�" � . .. �,.8�... ���� I o ., . � ^ r ' ; i _. � .... _ '�'i � L i .... .. _ �� _ � _> ���� ..,. Y o- .v, � t ,.n rLd 1. 1, {�._�,��,_kCS"�.'�1C'{,�'�e� 4700.00 26.215 205.542 4426.13 ! 752.71 - 1218.16 579.39 1415606.42 2360501.80 ! 3.75 63.79 1.44 8.05 4774.90 27.563 210.9941 4492.94 786.52 - 1247.95 563.33 1415589.80 2360472.33 3.75 0.00 1.80 7.281 OC 4800.00 27.563 210.994 4515.20 798.13 - 1257.90 557.35 1415583.63 2360462.49 0.00 0.00 0.00 0.00 4829.39 1 27.563 210.994 4541.25 811.73 - 1269.56 550.35 1415576.40 2360450.97 0.00 180.00 0.00 0.00 : egin Angle Drop ro n . i i ' � - -._ I ; � fi " I 1 . t dg m G� gl l 1 "r q� ' ^tiw� .� .�.....v.+Vu u y ga �'��'�71��H'" 1� �,s k h a x w 1 00 00 ..a, .ilw 1 _�.- �.___I r `_ _ - -.- FI �_ r; . .�..,__. ... _._ .. _ �.� w... .. .. � � " w...- � m �. s a' 5000.001' 22.018 210.994 4696.08 883.24 - 1330.86 513.52 1415538.43 2360390.38 - 3.25 180.00 3.25 0. 5100.001 18.768 210.994 4789.80 918.08 __ 495.58 1415519.92 2360360.86 MIMI 180.00 -3.25 0.00 5200.001 15.518 210.994 4885.34 947.55 -1385.99 480.41 1415504.27 2360335.89 INEE3 180.00 -3.25 0.00 1 5300.00 - 12 268 21 99 4982 40 971.56 1406 57 468 04 1415491.52 2360315 55 180.00 0.00 54 @ 1,1* µ" l , $ AA Planned Wellpath Report BAKER KBU42 -7Rd Version #3 HUGHES MARATHON Page 4 of 6 INT Q REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU42 - Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Facility Pad 41 -7 Sidetrack from KBU42 -7 at 4105.00 MD WELLPATH DATA (101 stations) t = interpolated/extrapolated station MD Inclination Azimuth TVD rVert Sect North East Grid East Grid North DLS Toolface Build Rate Turn Rate Comments [ft] [0] [ [ft] L [ft] [ft] [ft] [sry ft] [sry ft] 1 °/100ft] [ °1 [ ° /100ft] [°/100ft] 5500.00j 5.768 210.994 5179.83 1002.89 - 1433.43 451.91 1415474.88 2360289.00 3.25 180.00 -3.25 0.00 5600.001 2.518 210.994 5279.55' 1010.11 - 1439.62 448.19 1415471.05 2360282.88 3.25 180.00 -3.25 0.00 5677.47 0.000 268.914 ', 1011.82 11 X44,Z; " ' ?�t ] g a r � r, 0.00 -3.25 0.00 Middle Beluga (EOD) 5700.00t 0.000 268.914 5379.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.00 ''�"': � _.. r .. , ,.. .,.. r . ., . , ....,:: , . , . �11.. ..I.- 4 ., n �' I L. - - , ,... ,, .. I. -.,. -. ,.. .. ,,. -.., : .. , .::,:. :: ,.. , ,�,1 u: ,_.. :1:.. l ... ,,...... , yy . .,. ', , . ,. -. .. , .. ,. .�. ., . , .. .,, . .... . .a. ��a,�., Imo � , _ .__- --- ! ,..,. ..,� , ,_.� .,,. ,._ : �. „ 5900.00t 0.000 268.914 5579.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.00 6000.00t 0.000 268.914 5679.53 1011.82 - 1441.08 447.31 1415470.14 2360281.441 0.00 0.00 0.00 0.00 6100.00t 0.000 268.914 5779.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44! 0.00 0.00 0.00 0.00 6200.00t 0.000 268.914 5879.53 1011.82 - 1441.08 447.31 1415470.141 2360281.44 0.00 0.00 0.00 0.00 l as � I I ,P� n" r <. I 6400.00 -,. , n.. ,., .., I• x' rrll , ,,, ,. .: - -., Y I .+ .,., '- r:.... , vR �, I I � .. ,rl P Pu ,3w° - tiu'�.; �: 111 , .,yr "1^ do IR +.I �iP� u,`c, r + v ." f a'" 1 „,. ul .. 5 1 I , I �,. , 1 ,,. .� .,a.i r r te R i yyl i t y�, k�' y�T �, . •r . 7a..lr�f ' M+ - .. -w r� r � F F. ! , A � �F : I I� ; �� M r � i6 I a,�� h'o 4, 6� �'� x�;,�., 0.000 268.914 6079.53 1011.82 - 1441.08 447.31 1 � 1 � " 0.00 ` � MP '� °xr , � -� j' 415470.14 2360281.44 0.00 0.00 0.00 0.00 0 6407.47 0.0001 268.914 , ; , 1011.82 �� >�� _ e `� � � 0.00 -91.09 0.00 0.00 Lower Beluga 6500.001' 0.000 268.875 6179.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.04. 0.00 0.00 j 447.31 1415470.14 0.00 0.01 0.00 441 08 . 14 2360281.44 � 0 . 0.03 6600 00 0 000 268 909,,., 6279 53 1011.82 1 .... ,. .. . .. -_. -. .. ,,,...: r. � �.. ..,,.., , Y,1... � ,rn, M:urM1 1'441 ' ._ ¢.x�,a rc ue' .....: ':.: , 'W,.... ... v....- v�. ....,: u... .� . -< :,.. L.. . rr Z Ibf! P... _.. _ , r . . r: I , ..r .. ,. :,, ., , . �.- r. - <. -___ „ .. ,_...... - .'L^P.. fV}m., 1 M I W : _ .�. -.. . - -. ..,..i... ?.,. -.a.. ,,, -. ,.,... .,,.- ... .a..... . ".. _,., .l.., arr.. ,, �' , �, „x.;k ,Ir 1- ll: . ., tl.. a : .: r � -.. r.- -1._ -. .. -_ -. 1.,.. r ..,:: r -: -.- , -., , -.., -�., ..,...t.- r ra..9a..k�.,PS.r. r 7ti,_. N rl...,- ..._, . ..h.L __ < �. _, -. .r...,.: �,...:,II I ...,,, r �.,:., , _ -: �..... -.- ,.. -. _,__. .., , .. .... � ,....l.Q...,.._��. I.._.. 5 .,.,. IME�. .... �. r._.. -.._ .... r : r r..,.. I ,..,.,. .,..._ _df 1._- _ -._ _ ._... ,, ., I:, ... �. +M ,. ti_. ..: 15 :: - -. + i ".. ,.� ,. ._ i"., -..- L.,,... II ....._ „�.. _. .w. .,, .., ,, .,.... .�,. ..... -,: „u _,.� ,;I llr1 ., ,. �',... .,�'„ ,. ... ._. n,.. ,.. .,,:. ,.. 4 ,... � k. .... . ..... �.:.a .. .,, ., ..� ..._.. .-' -.- s 11 „" Lf m +:.:, "'d „�,nr ��. , r..� r,. - fal C,,,, � _. a;a..1,. .,:.. ..., . #... 4 � ... �, .:..... , � , � ar „. ...« - ._....... ,a•,, .. � x ,+, � , �,� , !,^� ulh,r g. -�' r1 � r���� �� �+ ��?�. �, , 16 � I G �'* I ��1 1 F'�'uro-�, te « :. §.:, 6800.001 0.000 268.9191 6479.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 -0.01 0.00 0.03�11111M 6900.001' 0.000 268.913 6579.53 1 1011.82 -1441.081 447.31 1415470.14 1 2360281.44 0.00 0.00 0.00 -0.01 1 7000.00t 0.000r26 6679.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.00 1441 08 1 447.31 1415470.14 2360281.44 0.00 -0.01 0.00 0.00 7100 00 1' 0 000 268.918 6779.53 1011 8 2 IIr.,,:,. mm n. ,..., ,.. n. , i ., - I � "r r.. .., r � a:. ::,,m .�._.. i -:... , ..,., ... ... � ..,,,.. � � 7300.00t 0.000 268.917 6979.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 - 0.021, 0.00 0.00 7400.001` 0.000 268.915 7079.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 -0.02 0.00 0.00 7487.47 0.000' 268.914 t 1011.82 . ,, 1 e -���� r a = • 0.00 180.00 0.00 0.00 Tyonek 7500.001 0.000 268.914 7179.53 1011.82 -1441.08 447.31 1415470.14 2360281.44 0.00 180.00 0.00 0.00 ,.I PII . �.a f;' -±-2-1,11;* u,: .In4 - _...1 ., ., ....,. 1 11 . ill 4 a. ,.,..: I :1 r... 1. . I .aa :�. ,...:. ,.1 � . I , r.... - ,. � . l P. ,, .'_.., - , I �a:: .:„ . I ,,.:. .:.�, .. ...,. , II .,:.:. .., , n .. - 1 ,,.. . as , , .. , r .. , I � _ �..r ,. � _.., yam, I I i n. .:u...l :.. , , .,...11 ...,i,. -�.. .. -. .. - -.. _ �....:� -,. .� ,,,, I „::,. a .�r...�,,. ...,,. � r ,:, .V.R, .,.._ ,.:, .., 7700.001 0.000 268.912! 7379.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 -180.00 0.00 0.00 1 7800.001 0.000 268.9121 7479.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 1 0.00 -180.001 0.00! 0.00 7900.001• 0.000 268.911 7579.53 1011.82 - 1441.08 447.31 1415470.14 2360281.441 0.00 - 180.00 0.00 0.00 1 8000.001 0.000 268.9121 7679.53 1 1011.82 -1441.081 447.31 I 1415470.14 2360281.44 0.00 - 180.00 0.00 0.00 P, � II , �, �,4��1 � , .� � I , rl , , 1 , „ rf b ...a., ... , E , a I;.I , ,_... , r,..,..- a 4N ..,. r1.:. ., ! R I("g.; 5A _... I � � � rr r : � r ,. k I P. . , � , , R *� l,l�•tt . , � l"� ,. 1, � d �BaR>ka�a ?� .r« a l o., m I s , I �, M t �. �.. �U A � G �R� .n..., Y± ti" u �� @' �Yf f @rrrr .�1 �„�±� " 1�'�u'f Planned Well path Report P ER N KBU42 -7Rd Version #3 BAKER MARATHON Page 5 of 6 INTEQ REFERENCE W ELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU42 -7 i Area Cook Inlet, Alaska (Kenai Penninsula) IEBIIIIIIII KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Facility Pad 41-7 Sidetrack from KBU42 -7 at 4105.00 MD j [WELLPATH DATA (101 stations) t = interpolated/extrapolated station ' _.. MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Toolface Build Rate Turn Rate Comments ft 1 1. °1 ft] [ft ft ft sry ft sry ft [ ° /100ft] [ °/100ft] ° /100ft] r 8200.00 0.000 88.930 7879.53 1011.82 -1441.08 447.31 1415470.14 2360281.44 0.00 -0.02 0.00 -179.96 8300.00 0.000 88.922 7979.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 -0.01 0.00 -0.01 _IIIIIIIB 8400.00f 0.000 88.911 8079.53 1011.82 - 1441.08 447.31 ` 1415470.14 2360281.44 0.00 0.01 0.00 -0.01 8500.00- 0.000 88.916 8179.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.00 �s _ . ...... s ace = �1. 0.0 8757.47 0.000 88.914 8379 53 1011.82 -1 441 08 7 3 1 415470.14 2360281` 0.00 0.00 0.00 0.00 44 ' 8700.00t i yonek 84 -6 8800.00- 0.000 88.914 8479.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.00 8900.00t 0.000 88.914 8579.53 1011.82 - 1441.08 447.31 1415470.14 2360281.44 0.00 0.00 0.00 0.01 aIIIIIIIIIIIIIII i 8907.47 0 88.91 , 1011.82 0.00 0.00 0.00 D HOLE & CASING SECTIONS Ref Wellbore: KBU42 -7Rd Ref Wellpath: KBU42 -7Rd Version #3 - 1 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft]..__ ... [ft] [ft] [ft] [ft] [ft] [ftl [ft] [ftl 17.5in Open Hole 0.00 1750.00 1750.00 0.00 1732.42 0.00 0.00 - 170.011 91.27 13.375in Casing Surface 0.00 1750.00 1750.00 0.00, 1732.42 0.00' 0.00! - 170.01 91.27 12 25in Open Hole 1750.00 4105.00 2355.00 1732.42, 3883.26 - 170.01 91.27 -983.96 577.73 9_625in Casing Intermediate 0.00 4105.00 4105.00 0.00 3883.26 0.00 0.00 - 983.96 577.73 8.5in Open Hole __ _ -_ __ __. ________ 4105.00 8907.47 _4802.47 3883.26 8586.99 -983.96 577.73 -1441.08 447.31 a g ` ` ' 447.31 3.5in Casing Production 0 00 8907 47 8907 .47 0.00 8586.99 0.00 0.00 - 1441.08 I M Planned Well path Report p BAKER KBU42 -7Rd Version #3 HUGHES MARATHON Page 6 of 6 INTEQ REFERENCE WELL.PATI11DENTIFICATR)N Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) EIZIIIIIM 'KBU -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Facility Pad 41_7 Sidetrack from KBU42 -7 at 4105.00 MD TARGETS Name MD TVD North East Grid East Grid North Latitude Longitude Shape ape ' [ft] [ft] [ft] [ft] [sry ft] [sry ft] 5 677.47 . i ! 14 : v 447 3 z � 2360281.44 60 °27' 17.590 "N` 151 ° 14'45.819 "W C rectangle 1) KBU42 -7Rd Middle Beluga (NAD83) ' ei � 27- Mar -08 _. __ 2) KBU42 -7Rd Lower Beluga (NAD83) 27- I 2 44 60°27'l 7 590 "N [ 151 ° 14'45 819 "W I point Mar -08 6407 A7 6087 00 1441 ��t � °r � . �� �4 ' a �e 7 487.47 7167.00 1441.08 447.311, f 1415470.14 3) KBU42 -7Rd Tyonek (NAD83) 27 -Mar - 2360281.441 60 27 17.590 N 151°14'45.819"W r point 08 4) KBU42 -7Rd Tyonek 84 -6 (NAD83) 27- 8757.47 843700 :1441 p 447.31' ; 79.141 � 2360281.44 60 °27' 17.590' N i 151 ° 14'45.819 "W i point ff Mar -08 8907.47 8587O�i wen..'?";-.11.21', �,, 7 �� . - 151 ° 14 45 819 ,,. y point i 5) KBU42 -7Rd TD (NAD83) 27- Mar -08 W g SURVEY PROGRAM Ref Wellbore: KBU42 - 7Rd Ref Wellpath: KBU42 -7Rd Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore II0 I [ft] [ft] 0.001 4105.00 NaviTrak (Magcorrl) KBU42 -7 4105.00 8907.47NaviTrak (Magcorrl) �_ U42- 071T • • Will MARATHON Oil Company BAKER Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: slot #KBU42 -7 HUGHES MARAT Field: Kenai Gas Field (NAD83) Well: KBU42 -7 INTEQ Uw . Facility: Pad 41 -7 Wellbore: KBU42 -7Rd Y Plot reference wellpath is KBU42 -7Rd Version #3 True vertical depths are referenced to Glacier #1 RKB (RKB) Grid System: NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 RKB (RKB) North Reference: True north Glacier #1 RKB (RKB) to Mean Sea Level: 87 feet Scale: True distance Mean Sea Level to Mud line (Facility: Pad 41 -7): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 28- Mar -08 Scale 1 inch = 100 fl Easting (ft) 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 I 1 1 1 1 1 1 3500 1 1 1 1 1 1 1 -850 — — -850 3600 7500 -900 — — -900 3700 -950 — 3800 0> 7600 — -950 9 5 /8" Casing Intermediate 3900 -1000 — — -1000 7700 4000 4000 -1050 — — -1050 4100 7800 4100 4200 -1100 — — -1100 4300 4200 7900 4400 -1150 — — -1150 4500 4300 4600 8000 4700 -1200 — .- -1200 Z 4400 4800 0 c 4900 P. LE 5000 8100 an o 5300 Z -1250 — 4500 5500 — -1250 6200 O ?0 ' ^, 7300 N' -1300 — 4600 �J�' — -1300 $ 000 X0 0 O -1350 — g — -1350 -0 4800 66 0 0 -1400 - <TU32 -71t 4900 — -1400 5000 5100 5200 -1450 — 8500 +KBU42 -7Rd i 1450 -1500 — — -1500 -1550 — — -1550 -1600 — — -1600 1 1 1 1 1 1 1 1 1 1 1 1 1 1 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 Scala 1 inch =100 Easting (ft) Clearance Report . KBU42 -7Rd Version #3 B AKE R MARATHON Page Approach HUGHES Page 1 of 40 I T Q REFERENCE WELLPATH- IDENTIFICATION Operator ( MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd .Facility Pad 41 -7 Sidetrack from KBU42 -7 at 4105.00 MD REPORT SETUP INFORM ATI ( Projection System NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999958 Report Generated 28- Mar -08 at 09:25:03 Convergence at slot 1.09° West Database /Source file WA_Anchorage /KBU42- 7Rd.xml W.ELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location -41.16 - 886.52 1415050.25 2361730.67 60 °27'31.782 "N 151 0 14'54.738 "W Facility Reference Pt INIIIIIIIIIIII 1415937.35 2361755.09 60 °27'32.188 "N 151 0 14'37.059 "W Field Reference Pt IIIMIIIII 1410937.15 2361824.52 60°27'31.931"N 151°16'16.783"W WELLPA I'H DAT IIM Calculation method M 1 II , , C 1 t : 1 • Glacier #1 RKB (RKB) to Facility Vertical Datum 87.00ft Horizontal Reference Pt Slot Glacier #1 RKB (RKB) to Mean Sea Level 87.00ft Vertical Reference Pt Glacier #1 RKB (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 RKB (RKB) Field Vertical Reference Mean Sea Level POSITIONAL UNCERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth 0.00ft Surface Position Uncertainty included Declination 18.87° East of TN Dip Angle - 73.38° Magnetic Field Strength 55413 nT M Clearance Report KBU42 -7Rd Version #3 BAKER Closest Approach UGIIES, MARATHON Page 2 of 40 INTEQ REFERENCE WEL LPATH 1DENTIFICATIOV Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) Well KBU42 -7 . Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Facility Pad 41 -7 Sidetrack from KBU42 -7 at 4105.00 MD ANTI- COLLISION RULE Rule Name E -type Closest Approach w /Hole &Csg Limit :0 StdDev:3.00 w /Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value 0.00ft Subtract Casing & Hole Size yes Apply Cone of Safety no HOLE & CASING SECTIONS Ref Wellbore: KBU42 -7Rd Ref Wellpath: KBU42 -7Rd Version #3 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S End N/S End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 3 Open Hole 4105.00 3883.26 -983.96 577.73 -1441.08 447.31 .5in Casing Production 0.00 8907.47 8907.47 0.00 8586.99 0.00 0.00 -1441.08 447.31 SURVEY PROGRAM Ref Wellbore. KBU42 -7Rd Ref Well I ath: KBU42 -7Rd Version #3 Start MD End MD Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 4105.001 aviTrak (Magcorrl) KBU42 -7 4105.00 8907.471 aviTrak (Magcorrl) KBU42 -7Rd M Clearance Report ' KBU42 -7Rd Version #3 BAKER Closest Approach NU!HES MARATHON Page 3 of 40 J T: Q REFERENCE WEI..LPATEI IDENTIFICATION Operator MARATHON Oil Company Slot slot #KBU42 -7 Area Cook Inlet, Alaska (Kenai Penninsula) EgailliMilli KBU42 -7 Field Kenai Gas Field (NAD83) Wellbore KBU42 -7Rd Pad 41 - Sidetrack from KBU42 -7 at 4105.00 MD CALCULATION RANGE & CUTOFF io ' From O.00ft MD !To 8907.47ft MD J C -C Cutoff: 500.00 ft INIewissirgeneartaINOMOMA OFFSET WELL CLEARANCE SUMMARY (32 Offset Well aths selected _..... ..�, . _ _..._.. � m .. Offset Offset Offset Offset Offset Ref Min C -C Diverging ? Ref MD of Min C -C p Min C -C ACR Facility Slot Well Wellbore Wellpath a MD Clear Dist from MD Min C -C Ell Sep Ell Sep Status [ft] [ft] [ft] , Ell Sep [ft] Dvrg from [ft] [ft] Pad 41 -7 slot #KBU42 -7 KBU42 -7 KBU42 -7 MWD <0-7570> 4105.00 0.00 7600.00 4105.00 -1.09 7600.00 FAII,f - > (Pad 41 -7 slot #KTU32 -7H KTU32 -7H KTU32 -7H MWD <0-11857> 8787.81 84.50 8787.81 8756.33 28.53 8756.33 PASS Pad 41 -7 (slot #32 -7 KTU32 -7 (KTU32 7 MWD <0-8864> 4105.00 805.13 7600.00 4105.00 733.19 7600.00_ PASS Pad 41 -7 slot #KBU 41 -7 KBU41-7 KBU41 -7 GMS <0 -7290 I 41 > 4105.00 923.69 6400.00 4105.00 t 7600.00 PASS ;' r Iry f y6r ° � r I Pad 41 -7 slot #KU 11 -8 KU1I -8 KU11 -8 GMS <0-5350> 4105.00 1029.54 4105.00 4105.00. 948.24 4105.00 PASS Pad 41 -7 (slot #KBU41 -7X KBU41 -7X KBU41 -7X MWD <0 -5300> 4105.00 1084.50 4105.00 4105.00' 1049.10 4105.00 PASS ,Pad 41 -7 slot #24 -6 KTU24 -6H KTU24 -6H MWD <0- 10960> 4105.00 1127.95 8200.00 4105.00 1095.21 8200.00 PASS Pad 41 -7 slot #24 -6 KTU24-6H KTU24 -6H (Pilot) UNKN <8820 -9010> 4105.00 1127.95 , 8200.00 4105.00 1095.21 8200.00 1e " Ill j .r ,, , ' iy g r y 1� 1 �? i . 1 °s r i 1041/660, l Pr: + , C 1 r n 3 ,... ' .:: � :' ; � x..� sll1 LW Ily C�. 4 . .�.:,.. a': -.I .. ,,_.._. Pad 41 -7 slot #KBU11 -8X KBU11 -8X KBU11 -8X MWD <0-7659> 4105.00 1187.09 4105.00 4105.00 EMS 4105.00 MEI Pad 41 -7 Slot #KBU43 -7X KBU43 -7X KBU43 -7X MWD <0 -8610> 4105.00 1202.30 4105.00 4105.00, 1118.11 4105.00 PASS Pad 41 -7 slot #KU 43 -7 KU 43 -7 KU 43 -7 MSS <0 -5707> 4105.00 1318.17 4105.00 4105.00 1235.73 4105.00 PASS Pad 41 -7 slot #KDU 2 KDU #2 KDU #2 MSS <0- 10522> 4105.00' 1381.93 4105.00 4105.00 1292.53 8907.16 PASS ° -8 afi�:' . � m , ... ;, , .,r �„g�., -: ;` , ^^*" "m1^n.:'" I r i^w� �'mow�xs tl , ,. w ; w M I ud � • � r a1. ,, T ..;,,, t" r y �,.'�� 7 + f �� a I .:: , i v , Pad 41 -7 slot #KDU 4 KDU4 . '� .�._ 7 i4 ' 1 III 1 , � , �1}u�4�1� , -; 144,5 7m9��r3 n 11 �119 �'��SL�,:g /lll jl,' a<s it '�:'A $ I s z 1W .,. .'Y., M�., .�,. x... � _ - __ - ....�. _..W ..,rz -�. ,... � _ � �., .0 L. _.., ..,_� -... � , I I .� x��._. a�f���wG,t�r.,r w. � ._ _. 4105. 1553.88 00t ! KDU4 GMS <0 -5549> 4105.00 1635.71 4105.00 4105.00 : 1 1 4105.00 PASS Pad 41 -7 slot #KDU 4 KDU4Rd KDU4Rd MSS <4320 - 10810> 4105.00 1635.71 4900.00 4105.00 1553.88 4900.00 PASS (Pad 41 -7 'slot #KTU13 5 KU13 -5 KU13-5 GMS <0 -8120> 4105.00 1766.39 4105.00 4105.00 1711.76 4105.00. PASS 'Pad 41 -7 Slot #KBU33 6X KBU33 -6X KBU33-6X MWD <0 -8405> 4105.00 1798.71 4105.00 4105.00 1771.45 4105.00 PASS ry s n r r 1 s , a. N� 1 s� 1 :* 3 , y 4 - I ' � I � " : .IX , :.'I: ' . _ k ,r+ MY rsd 1 i, , 4s 416111V h r Iii ��' + . q .= ....� ,... ...,. r � I p��l ���h�f ��r� 11 �i1+'��e 0, 's Pad 41-7 i slot #KTU43 -6X KTU43 -6X KTU43 -6XRd MWD <7670 -9464> 4105.00 1891.85 4105.00 4105.00 1851.03 4105.00 Pad 41 -7 slot #KTU43 -6X KTU43 -6X KTU43 -6XRD2 MWD <7700 -9470> 4105.00 1891.85 8907.47 4105.00 1851.24 8907.16 PASS Pad 41 -7 slot #KU 24 -5 KU24 -5 KU24 -5 . GMS <0 -5900> 4105.00 1944.82 4105.00 4105.00 1877.28 4105.00 PASS Pad 41-7 slot #KU 24-5 KU24 -5 KU24-5Rd MWD <3470 -4816> 4105.00 1944.82 4105.00 4105.00 1877.28 4105.00 PASS rF :n+ ' i ?:!., s 71 , . # ry n !,'. 1."N ° e .11'r!°' r, r ,,.. uv v i1 :,:. s+ Ir -v, s r 1,f T� q uC,,. f P�' .4+�d;.,;� �i 9 � + d� 1� PW ', da. 5�,,��III r: I ,�,al e ,:,,, ��� *F� r�r „P wd [I sx. �1;,, " F'.:,, i�' ,,.1c1 �r.. !rI I� ,r,. I � � .��.1x,�� `�.�.�` .,��Y�F,u.:,� ^ � tea. wLfrrl�: r�i�Il� �:a�� �"i�,�w�Irl��ll iroxY ��mu�r'IIItiK��.�R =���ul ll�!7 i�11r1�� 1 ".�. _w _ - ' 0 0 All Marathon Oil Company Well Name: KBU 42-7 RD \71. — — - Location: Kenai, Alaska. I ...I i , TE ___ i _ _ 1'1 1 ___, _ ' --1 ,,/ FLUIDS i _ , NG1NE . , ,, , PROJECT _._, , , ,,, ii A , _ , i i i ..i., , , ,---- , ,, _,- E 0 pi.ot.o.• Fio Mil MWAlok,,I=C:i , Prepared For: MARATHON OIL COMPANY Well KBU 42-7 RD Kenai Peninsula, Alaska 11 it \_. 4, , ...2_ .44 f ., 1 - i i 4 ' - - Prepared by: Jim Dwyer Reviewed by: Hal Martens Presented to: Will Tank March 28, 2008 MI SWACO • Marathon Oil Company IFE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the KBU 42 -7 RD well to be sidetracked using the Drilplex mud system. The following is a brief synopsis of the program. Overview: KBU 42 -7 RD is a sidetrack of the existing well. The plan is to kill and abandon the existing well, drill a 8 -1/2" sidetrack to +/ 8907' MD, run and cement 3-1/2" EXCAPE completion. The major concern for this sidetrack is drilling the underpressured sands in the Sterling formation with a final target of the high pressure zone in the lower Tyonek (8757' MD) using a 12 ppg mud weight. The Drilplex mud system should prevent losses in the Sterling so the heavier mud weight can be used for drilling the Tyonek with no intermediate casing needed. Abandonment & Milling: The existing tubing pulled will be pulled and a whipstock will be set @ +/- 4105' MD. Drilplex will be used both as the milling fluid and the sidetrack drilling fluid. Initial mud weight for milling and sidetrack in Sterling and Middle / Lower Beluga will be 8.8 — 9.1 ppg. Ditch magnets will be installed to capture metal cuttings. A FIT will be performed prior to drilling ahead after cement is squeezed around 9 5/8" casing. Sidetrack Interval: The Drilplex fluid will be further conditioned for drilling the OH sidetrack. Connection and trip gas should be monitored constantly to prevent a well control issue. Most of the target zones are underpressured. Formations are tight so a well maintained Drilplex program with carbonate sizing will prevent severe losses. A 3 -1/2" EXCAPE completion will be run and cemented in place. Completion: After logging, the 3 -1/2" EXCAPE completion will be run and cemented. Corrosion control will be added to the packer fluid and the cement will be displaced with 6% KC1 brine. Jim Dwyer Project Engineer /M -I SWACO NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. Mi SWA ���,. 0 � Marathon Oil Company ..... I = Well Name: KBU 42-7 RD VI Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth TVD Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9 -5/8" 12 -1/4" .r 4105' 3883' Kill /Cleanup Fluid 8.8 4 Window $40,472 Drilplex for milling '' /Drilling 9.1 6 Shale Shakers / ditch magnets 3 -1/2" 8 -1/2" 8907' 8587' Drilplex w /SafeCarb Shale Shakers / 9.1 — 12.2 7 $182,233* Desilter N/A 3 -1/2" Completion 8907' 8587' 6% KC1 Brine 8.6 3 $13,926 ➢ Insure magnets are in proper location prior to milling out of 9 -5/8" casing. ➢ Cost does not account for any losses of fluid to the formation. Mud cost does include engineering charges. * Cost includes weighting up system to 12.2 ppg by end of interval MISWAC•o �4 • 0 ..._=..--sr ____ 1 1FE Marat Comp Well N KBU 42 -7 RD Locatio n: K Oil enai, Alaskany a. V 1 Estimated Produ Usage Summary PRODITCT = Kill ! Milling °,� = off Corgi letion Total Usage, Total=Cost Cleanup- /SSided °acl p '' LL: k - M -I Wate 0 5052 5052 24.4 Gelplex 82 253 335 6.4 Soda Ash 3 7 10 .08 Drilplex 25 56 81 4.3 Floplex 60 168 228 20.5 EMI 1008 1 1 2 1.68 EMI 795 70 196 266 27.0 SafeCarb 0 561 561 6. KCL 60 168 184 412 3.5 Conqor 303A 4 4 .9 Sodium 4 4 .02 Metabisulfite Engineer Service 10 7 3 20 4.42 Mt SWAC_� • Marathon Oil Company 'FE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Interval Summary - Milling +/ 4105' Drilling Fluid System DRILPLEX Milling Fluid (cutting window in 9 5/8" casing) Key Products DRILPLEX / GELPLEX / Caustic Soda / Soda Ash / FLOPLEX / Solids Control Shale Shakers / Ditch Magnets Recommended shaker screens — 180/180/150 mesh Potential Problems Birds Nests (hole cleaning) Interval Drilling Fluid Properties Depth Mud Plastic Yield Point API Metal Interval Weight Viscosity Fluid Loss MBT content (ft) (pPg) (cps) (cps) (ml/30min) ( %) +/- 4105 9.1 10 - 14 35 -45 < lO cc 0 0 ➢ Estimated volume usage for milling /kill operations — 659 barrels. How the Drilplex system can help in reducing /curing Lost Circulation problems The rheology of an MMO fluid at low shear rates resembles that of lime and gypsum muds, in which the bentonite is strongly flocculated by the presence of divalent Ca ions. This leads to elevated yield stress, yield point and apparent viscosity, which in turn provides good hole - cleaning (Fig. 10). At high shear rates the plastic viscosity tends to be low helping to minimize the equivalent circulating density (ECD). Upon quiescence following shear, the mud gels rapidly, but not progressively. This is desirable for rapid support of cuttings. Mi SWAG • • Aal Marathon Oil Company IFE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Stationary, gelled layer of mud • Zero shear - stress at wall Excellent • Minimal dynamic fluid loss cuttings • Protects poorly consolidated or transport fractured formations • Helps prevent seepage losses • No erosion of wellbore Fig. 10 It is postulated that while drilling, a thin stationary layer of fluid adjacent to the wellbore (Fig. 11) helps reduce seepage losses and dynamic filtration. It will also serve to stabilize unconsolidated formations and will significantly reduce washout tendencies. il Last casing t' 1 ; i t t I Reduced circulating 1 1 1 1 1 1 1 1 , 1 1 'c h — Layer of near - static mud 1 1 1 1 ".. 1 1 1 I ,_ Lost circulation 1 1 i ' ' Rotating 1 1 Fig. 11 Mi SWAPO, x • • Marathon Oil Company IFE Well Name: KBU 42 -7 RD V1 Location: Kenai, Alaska. The unique rheological properties of the Drilplex system results from the way in which MMO complexes with bentonite. In solution the surface of the clay platelets have an excess of negative charge. MMO particles are sub - micron with an excess of positive charge, and they align with the negative charges on the clay platelets. Although the attractive forces are individually quite small, cumulatively they combine to provide the strong gel structure seen with the system. How the Drilplex system can help in drilling unconsolidated formations and stabilizing surface holes against collapse It is postulated that while drilling, a thin stationary layer of fluid will be formed adjacent to the wellbore (Fig. 10 and 11). This phenomenon is also known as "hydraulic wellbore ". In the proximity of the rotating drill pipe the fluid is indeed in a "fluid" state and the upward velocity shall exceed the calculated annular velocity. At the furthest point from the influence of the rotating pipe (i.e., at the wellbore face), the fluid is likely to be in its "solid" state. The stationary, gelled layer of mud results in zero shear stress at well, hence no erosion of wellbore. The fluid was used to drill gauge holes through a highly unconsolidated formations (which analysis showed to be mainly uncemented quartz) suggesting that little if any fluid motion was occurring at the wellbore face. Besides the above - mentioned facts, there is something else that contributes towards stabilizing surface holes against collapse. When left static, the system gels up due to its viscoelastic behavior and undergoes a reversible state of change between free - flowing liquid to elastic solids. It is its elasticity that prevents the wellbore collapse as well as any kind of seepage losses. However, what visually appears to be an unpumpable gelatinous mass when static, can be easily mobilized by application of mechanical displacement force. Conversely when motion (e.g. agitation) ceases, the free - flowing liquid reverts almost instantly to its gelled solid state. The formation types encountered here will be fine to coarse sands, coal stringers, and ratty shales. Slurry Preparation (Common to all applications) 1) Treat the drill water with >0.25 ppb soda ash irrespective of hardness. 2) Add bentonite to give 30 ppb in final slurry. 3) Mix and hydrate as long as possible 4 hours minimum (ideally 24 hrs). 4) Check Fann 35 data. Look for: ■ F600 RPM > 120 ▪ F3 RPM > 25 5) Pilot test the final formulation with this slurry to get mud properties correct Mi SWAG 111 IFE Marathon Oil Company Well Name: KBU 42 -7 RD V1 Location: Kenai, Alaska. Preparation of Fully Formulated Drilplex Fluid in Fresh Water (FW) • Dilute sample of slurry from above with FW to achieve desired final bentonite concentration and blend until homogeneous. • Add Drilplex while continuing to run all mixing equipment with maximum agitation • Add 0.25 ppb soda ash and continue to shear. (Yield will not be instantaneous) • Add caustic soda to adjust pH to 10.8 +1- 0.1 and continue mixing until yield is apparent. • Spud in with DRILPLEX, pumping high viscosity gel sweeps if necessary to insure proper hole cleaning. • Monitor the rate of penetration to insure the annulus does not become overloaded with cuttings, leading to hole packing off, lost returns, and stuck i e. Mud weights at the flowline should be monitored closely and if h e PP g t Y mud weight exceeds 10.0 or the sand content reaches hes 10 % with the sand content tube, be, circulate the hole clean or at least until the sand content and or mud weight decreases significantly. • Proper use of the solids control equipment, and premix additions to control the mud weight are all necessary to control the buildup of drill solids. Continue running the desilter, desander, and micro clones in this interval. Shale shakers should have the finest screens possible that mud flow will allow. • Continue using premixed GELPLEX and DRILPLEX to maintain viscosity, volume and mud weight control. Thought should be given to the economics of using a shear unit on the mixing hopper. These have shown to decrease chemical usage and increase the yield of bentonite quickly. Utilize prehydrated GELPLEX for ease of mixing and also this can be utilized quickly to raise the viscosity and or build sweeps. • Maintain pH between 10.8 -11.5. with caustic Soda • If returns are lost, slow the pump rate immediately to see if returns can be regained at a slower rate. If returns can be regained or maintained at a slower pump speed, decrease the ROP commensurate with the new pump rate. Have the ability to quickly fill the annulus with water or mud if total returns should be lost. All wells in this area have experienced severe mud losses in this interval. A good primary plan (LCM pills) for lost returns along with a fall back contingency (drilling with water) should be in place before spudding the well. If partial returns can be kept with a reduced rate, sweep the hole with the maximum concentration of LCM material ( 30 - 50 ppb). If returns are totally lost, attempt to spot an LCM pill in the open hole prior to pulling into the casing. Allow the hole to heal, stage in the hole slowly, circulating the annulus clean at different stages. Pump LCM sweeps while staging in the hole. Mi SWACS,L, • • Marathon Oil Company Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Interval Summary — 8 -1/2" hole 4105 - 8907 ' Drilling Fluid System Drilplex (reconditioned from milling fluid) Key Products DRILPLEX / GELPLEX / FLOPLEX / Caustic / EMI 795 / EMI 1008 / Soda Ash Solids Control Shale Shakers / Desilter / Centrifuge Recommended shaker screens — 230 - 270 mesh Potential Problems Lost circulation in Sterling sands / differential sticking / swab -surge Interval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss MET Solids (ft) (ppg) (cp.) (cps) (m1/30min) ( %) 4105 -8907' 9.5 -12.5 12 -18 +/- 60,000 <9 <8 <5 D Recondition DRILPLEX milling fluid before drilling ahead. SafeCarb can now be added to fluid for underpressured zones in the Sterling sands. Daily maintainence of SafeCarb is needed to maintain PSD (particle size distribution) especially thru underpressured zones. SafeCarb will be ground down daily during drilling and circulating. D Run as fine of shaker screens as possible to minimize drill solids buildup. Run solids van if weight becomes too high. D Have Pilot Test kit on location for testing different concentrations of Drilplex chemicals if needed. D Condition fluid prior to running Excape completion. D Estimated volume usage 1400 barrels. Mi SWAC_Q..- • 1 Marathon Oil Company . IFE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Fluid Formula- 8 -1/2" Interval M1 B AL KBU 42 -7 RD 12 ppg Drilplex formula M -I L.L.C. Input Description Drilplex for Marathon sidetrack KBU 42 -7 RD Mud Weight 12 ppg Prehydrated Gel ;' ' No W eight Mateheil Code MI WATE Wight MatetialSG 4.1 KCI Chloride KCI Wt% 2 (optional) Output - 1 bbl 4 Products ,, Concentration Field,; lb �, . .: Lab, gm ' � 'Fields bhl �.. Lab, mi ,;Fur5ct[gri 1 Soda Ash 1.00 1.00 0.001 0.40 ph control 2 GELPLEX 9.00 9.00 0.010 3.46 Viscosifier 3 Caustic Soda 0.25 0.25 0.000 0.12 ph control 4 DRILPLEX 1.00 1.00 0.002 0.63 Main viscosifier 5 EMI -795 7.00 7.00 0.013 4.67 Inhibition 6 FLOPLEX 6.00 6.00 0.011 4.00 Fluid loss control 7 EMI -1008 0.50 0.50 0.002 0.53 Coal suppresant 8 SafeCarb 20 / 40 20.00 20.00 0.022 7.69 Plugging agent 9 Potassium Chloride 5.74 5.74 0.007 2.40 Inhibition 10 MI WATE 168.39 168.39 0.117 41.07 Weight 11 Water 281.12 281.12 0.803 281.12 Base fluid If hole becomes sticky or torque increases, add the following lubricant, PA 10 4.00 4.001 0.011 3.92 Lubricant No other products will be added to mud system without approval from project engineer Total 1 504 504 1.0001 Volume esti 1900 Calculated Mud Weight.. 12.000 Total Chloride 9700 Mi SWAG r Marathon Oil Company Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. VIRTUAL HYDRAULICS SNAPSHOT WITH 12.2 PPG MUD Mi �4 �.i ©1995.2008MIL.L.C. Hate Clearing MD: 8907 ft Operator : Mara8nnOHCom ' 'Mark of 51.1 r 7VD:8628 ft Well Name: KBU 427RD VIRTUAL HYDRAULICrSnapShoC W�Ib�eGeDn y BltSize: 8.5 in Locator: Karel Peninsula Date: 3131f2008 Country: Alaska __ Depth Geometry Arse Density Va HdeClean PressrreDistritxltim (ft) ND/ND CsgOD/ID fl (NO) )fVmi4 Irth rio) (1Q (in, 0 45 90 12.0 12.8 13.6 14 .4 0 300 600 vc G F P B@ =13.3 Am =19.5 DS =67.2 1 - 50( V [ _ i 100 4 .. _ �. — I ' P 200 t l- ....__._ _.._ —_. ..__..._..... r Dr8lirpRud • 1 250 - Water -Based Mild — — i — t MudWei�t 12.2 INgal • 3000 Test Temp 80 °F — — - -- System Data 3500 ( Row Rate 450 gal/min ■ 40 Penetration Rate 50 Nk �_ ► 9.82 ---_ - __ — __ ` 3914 8.83' Robry Speed 80 rpm - 4500 — . -f_..._- ___, _.- .- .- ._- ... -.___ -.--- -- 1____ __-___. Weight onBit 2 10001b 1 ! ' Bit Nozzles 0.663 at -- — — — — — 5000 I ' 5500 —_ - - -.__ . _- — —_ Presmre lases i. — ._.._ Modfied Power Law r 1 soon Drill String 2613 psi i �. --.-- -- — MWD 250 psi _ , Motor 150 psi — —_— — . Bit 518 psi 7000 BItOd06 100 psi U r Annulus A 760 psi 7500 _..— - -, - -- — - - -._ SlrfaceEgrtp 33 psi ■ I U Tdta Effect 23 psl 6000 i T ata lSy stem 4447 psi i 8500 E I I ESD ECD +CSt j — : _ T . - I ..__ CsgSMe 12.M 13.73 13.78 9006 - es0 5 - _ 8.50. - - -L I TD 12.24 13.94 13.99 ESD ° E °1 Ha VRDH • Vension 3.1 Fann 35 • I — ECO 1 :. - ...mow _. . 9500 F,4Mfl4 1 MEM File .KBU 42.7 RD.MDB MI SWACq tee • 0 w Marathon Oil Company aJ I Well Name: KBU 42 -7 RD VI ® Location: Kenai, Alaska. VIRTUAL HYDRAULICS ECD IN MIDDLE BELUGA Ms SINApg, ©19952006 LL.0 h&cr_ �ai.z MD: 6;:u r, Operator a;.i i.",.1 v � t 'Mark M - IL.ic ND 8587 ft Well Name KBU 42.7RD ECD with 122 ppg VI R T U AL HYDRAULICS'VROD' BaSize 85 in Location: Komi Peninsula Date 331?fi95 -. ...Country 3 =, ECD Optimization @MD 5357ft Marathon Oil Company KBU 42 -7 RD 14.00 ; Expec ed FIT i — ROP4Othr 13.98 — ROP80tthr - ; • — ROP120Mu 13.96 — — - I _ — ROP160ftfir • 13.94 — Expected FIT 13.92 I 13.90 -- 13.88 12 p 13.86 C) W 13.84', - -- — — — ..._ —�-- 13,82 — - -- -- — -- 3.80 I_ 13.78 t i 1 1 — —. - -_. __ _ 13.76 , .,..---.m, . 13.74' 340 360 380 400 420 440 460 480 500 Flow Rate (gallmin) MI SWACO Marathon Oil Company ® ► IFE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Interval Summary — Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well KBU 42 -7 RD Volumes: Tubing Volume 3 -1/2" Tubing 77.49 barrels ~!� Annular Volume Casing x Tubing 251.76 barrels Tbg 3.50 x 2.992 x 8907 ft Open H ole x Tbg 120.23 barrels T 9.625 x 8.681 @ 4105 ft MD Total Annular Volume 372.00 Tubing Volume 77.49 Total Hole Volume 449.49 8.500 x 3.50 @ 8907 ft MD Treatment Procedures. 1. After the 3-1/2" tubing is run and the drilling fluid is circulated and conditioned for the cement job, circulate an additional 251 barrels of drilling fluid. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 95 barrels of drilling fluid pumped (4 drums & 4 sacks total) 3. After the 251 barrels of drilling fluid with treatment have been pumped downhole, begin the cement job. 4. This procedure will place corrosion control in the 3 -1/2" x 9 -5/8" annulus. Mi SWACO 1 Marathon Oil Company ' Well Name: KBU 42 -7 RD V1 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. MI SW"._PS10--- • ' Marathon Oil Company FE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS CAUSTIC POTASH Alkalinity Control Mit .. ,. s 1 X CAUSTIC SODA Alkalinity Control 0 1 X DRILPLEX Mixed Metal Oxide 1 0 J FLOPLEX Fluid Loss Control 1 0 J GELPLEX Viscosifier 1 0 J EMI 795 Inhibition 1 1 J EMI 1008 Anionic suppressant I 1 0 J PA 10 Lubricant 1 1 J CONQOR 303A Corrosion control 1 1 J MYACIDE 25G Biocide 0 0 J SAFECARB Bridging * weighting agent diall 0 0 E SODA ASH Calcium precipitation 1 1 0 E HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 - Severe hazard 3 - Serious hazard 2 - Moderate hazard 1 - Slight hazard 0 - Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A - Safety Glasses B - Safety Glasses, Gloves C - Safety Glasses, Gloves, Synthetic Apron D - Face Shield, Gloves, Synthetic Apron E - Safety Glasses, Gloves, Dust Respirator F - Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G - Safety Glasses, Gloves, Vapor Respirator H - Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I - Safety Glasses, Gloves, Dust and Vapor Respirator J - Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K - Air Line Hood or Mask, Gloves, Full Suit, Boots X - Consult your supervisor for special handling directions MI SWAC. ry Marathon Oil Company Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Contacts, Contact Title e-mail Work Cellular Pete Berga Drilling pkberga @marathonoil.com 907 565 -3032 907 231 -0663 Marathon Superintendent Will Tank Drillin g Engineer wjtank@marathonoil.com ineer 'tank @ marathonoil.com 713 296 -3273 713 203 -8398 Marathon Jim Dwyer Project Engineer jdwyer @miswaco.com 907 274 -5011 907 317 -4556 MI SWACO Bob Myles Warehouse Manager rmyles @miswaco.com 907 776 -8722 907 252 -4218 MI SWACO Oliver Amend Field Engineer amend @acsalaska.net 907 283 -0895 907 398 -9474 MI SWACO (home) Jim Brown Field Engineer Miswacogdrl @hotmail.com 907 398 -8500 907 398 -9474 MI SWACO (cell) John Nicholson / Drilling Foremen alaska_drilling @marathonoil 907 283 -1312 Rowland Lawson .com Marathon Responsibilities ➢ MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M -I field engineers. ➢ Field Engineers will work closely with the Drilplex specialist to learn the system for mixing on their own in future well projects. ➢ Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. ➢ Field Engineers will monitor and supervise product inventory to include re- palletizing any products for shipment to other locations at the end of the well. ➢ Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). ➢ Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. M�SWA • 0 Marathon Oil Company IFE Well Name: KBU 42 -7 RD V 1 Location: Kenai, Alaska. APPENDIX 1 Product Bulletins Drilplex MI SWAG Marathon Oil Company ~ 'FE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. EMI -795' Shale- hydration Inhibitor EMI -795* shale - hydration- inhibitor is a polyvalent salt used to inhibit the swelling and hydration of drilled formation cuttings and the near well -bore. Care should be used when mixing EMI -795 and the engineering guidelines pertaining to the use of this material should be rigorously followed. EMI -795 is the main shale- hydration inhibitor in the EMS -2700* and EMI -2900* systems. Typical Physical Properties Physical appearance White powder Specific gravity 2.33 g /cm pH (1% water) 10.6 Solubility in water Soluble Bulk density 58.5 lb /ft (939.0 Kg /m Applications Traditional shale - hydration- inhibitors, by nature of their surface active properties, tend to destroy the high low -end rheology that makes mixed -metal oxide (MMO) systems unique. EMI -795 has now been developed to address this, and is particularly suited for application in the EMS -2700 and EMS -2900. When preparing new fluids, EMI -795 shale - hydration inhibitor additive should be added at concentrations of 5 lb/bbl (14.3 kg /m Small maintenance additions of EMI -795 should be made as necessary (refer to engineering guidelines for more information). The addition of EMI -795 should be pilot tested and the GELPLEX bentonite concentration adjusted accordingly. Combination treatments of EMI -795 and potassium chloride or potassium sulfate have been successfully employed in the field and laboratory trials, resulting in improved technical performance and stable fluid properties. Advantages • Specially designed shale - hydration- inhibitor for the DRILPLEX, EMS2700 and EMS -2900 systems. • Effective at reducing water adsorption and swelling of formation claystones/ shales, • Non toxic. • Secondary effect as a corrosion inhibitor. • pH buffer • Extends the application of mixed - metal -oxide based fluids where moderately reactive formation clays are anticipated • Inorganic salt, and therefore easy to mix. • EMI -795 is extremely effective when used in conjunction with either potassium chloride or potassium sulfate salts, counteracting the flocculation effect of these specific potassium salts. SWACQ.- • 'FE Marathon Oil Company „ Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. too �il o .� �� mow- 90 0 � -10 W ater co ■ : =: =: 80 � -� — -20 01 �■ -■ 70 0 — * -30 pm -1 -N - m 60 m -40 011 JIM 2 50 � r - . - 011 - -■ - 40 - U -6o O/ - -� - 65 ° '�� 30 01 11111111111111111 °, -70 pm -�� 20 di. 1' o ^ -so /• -- °Surface Hardness ■ (N / 10 / -r -. -90 /m . , , �m m 0 -100 DRILPLEX + EMI -795 + KCL DRILPLEX + EMI -795 + KCL Effect of Inhibitor on hydration of Oxford clay cores (after Effect of Inhibitor on Hardness of Oxford clay cores (after ageing at 150 °F /16hrs). ageing at 150 °F /16hrs). Data referenced against native unexposed Oxford clay core sample. Limitations • Calcium hardness should be fully treated out with soda ash before mixing EMI -795. • EMI -795 is not recommended for drilling long intervals of highly reactive formation claystone and shale sequences. • The concentration of EMI -795 should be closely monitored (refer to engineering guidelines), and additions made to the active to compensate for depletion. • EMI -795 can have a transient thinning effect when initially mixed, which appear to be more pronounced under low shear and low temperature conditions. Higher GELPLEX* concentrations may have to be used as a result. • EMI -795 should be used in conjunction with new fluid - loss - control additives (EMI -1020 or EMI - 1007). The selection of fluid -loss control additive will depend on the technical specifications of the fluid (refer to supplementary data sheets for more information). Toxicity and Handling EMI -795 is classified as an irritant. Minimize the formation of dust and avoid contact with eyes and skin. Handle using protective equipment and observing the precautions as described on the Transportation and Material Safety Data Sheet (MSDS). Packaging and Storage EMI -795 is supplied in 25 -Kg sacks. Product is hygroscopic. Store in a dry location and avoid excessive humidity. Mi SWAC ! • Marathon Oil Company "FE Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. EMI -1008* Anionic - scavenger • EMI -1008* anionic - scavenger is a cationic polyelectrolyte used in the DRILPLEX *, EMS -2700* and EMS -2900* systems. EMI -1008 has a strong and irreversible affinity for suspended and dissolved organic matter to protect the mixed - metal- oxide (MMO)- bentonite complex from being disrupted with organic contamination. Typical Physical Properties Physical appearance Straw- coloured viscous liquid Specific gravity 1.085 g /cm pH -value 5.5 Solubility in water Miscible Flash Point >212 °F (100 °C) Melting /Freezing Point 27 °F — 32 °F ( -3 °C — 0 °C) Applications Contamination of MMO -based fluids with organic materials, derived from decayed organic matter and which are also found naturally in peat and geologically young coals, can lead to complete collapse of the unique high low -shear rheology of these fluid types. Historically, this sensitivity to even relatively small concentrations of anionic contaminants has limited the application of MMO -based fluids in certain geographical locations. EMI -1008 anionic scavenger was specifically developed to improve the tolerance of MMO -based fluids to organic contamination. EMI -1008 can be added at concentrations of 0.25 — 0.5 lb/bbl (0.7 —1.4 kg /m to a fully formulated fluid. In order to avoid over treating the system it is recommended that additions of EMI -1008 are made only on remedial basis, to condition a contaminated system. Higher treatment levels should be pilot tested, and may be necessary with higher levels of organic contamination. Advantages • EMI -1008 is effective at low concentrations (but the effective treatment level is dependant on the severity of organic contamination). • Specially designed polymeric scavenger for anionic contaminants. • Can help protect the MMO- bentonite complex from being totally and irreversibly collapsed by organic contaminants. • The addition of EMI -1008 can fully restore rheology to a MMO -based fluid after anionic contamination. Mi SWAB • • IFE Marathon Oil Company Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Figurel Effect of 1ppb tannin on Yield Figure 2 Effect of 5ppb tannin on Yield Point Point so 50 ��� � � , 70 � ■� 40 ■ MEW ®, �, 60 • 50 ■ 30 ° $ I • . °0 4° /I 14 30 al 20 II } 20 o mr . 0 a. 0 0 10 r Clean DRILPLEX +1ppb tannin Clean DRILPLEX +5ppb tannin Fluid contamination Fluid contamination I ❑ No treatment IU +1 ppb EMI -1008 I I ❑ No treatment ■ +5ppb EMI -1008 Figures 1 and 2 show the effect of EMI -1008 (remedial treatment) on rheology, with DRILPLEX fluids contaminated with low and high degrees of organic contamination (tannin). Data selected from 10.0ppg (1.20 s.g) DRILPLEX fluids after thermal aging fluids at 250 °F. All viscosity measurements were recorded at 120 ° C. Limitations • The use of EMI -1008 should be pilot tested prior to making additions to the active system. • The bentonite -MMO complex should be allowed to fully develop prior to the addition of EMI -1008. • GELPLEX* or an equivalent premium grade bentonite is recommended. • Additions of EMI -1008 should be made slowly over a number of circulations to avoid localized flocculation of the fluid • Over treatment with EMI -1008 can lead to increased rheology and can have a negative impact on fluid loss control. It is therefore recommended that EMI -1008 be used as a remedial treatment when anionic contamination of the DRILPLEX system is suspected. • EMI -1007* and EM) -1020* fluid - loss - control- additives are more compatible with EMI -1008 than FLOPLEX *. Toxicity and Handling The product may be irritating to eyes, skin and respiratory tract. Spilled product is slippery under -foot. Wear protective equipment and observe the precautions as described on the Transportation and Material Safety Data Sheet (MSDS). Packaging and Storage EMI -1008 is supplied in 20 litre plastic drums. Avoid extremes of temperature, especially frost and freezing conditions Mi SWAC • • IFE Marathon Oil Company Well Name: KBU 42 -7 RD V1 Location: Kenai, Alaska. 0 -FLEX PLa.PLEntuiddiewonitnil vent is a c >dle hvernitrikfiltretion Mantua xa " , .- smith PAC. x. tre i, . "E-EX . ;. itadded. Aci,Px.tx kliftitiht t Kea air any other ._ additiven a v estabil' 47.- R X :"fit 26 (120aa aseyrbeereraaiadt 301PF 414 1 by itteat etiti e im . ,:.: agent sada PTS=20Crizdihhiae F P zx ate' to r Mite pow • pit 105 Solubility view . _... �.._.� ... a..�.... .�_ _ ... �. .., . Tradido..nal thus& lose additives tend to destroy the hilt r and theology that neaten dm ~> i a system unique. Cenvoittional a nionk thuiddetti agents will titles thank s ystem- Thehdete., a a€ paral additive was developed to previde thddlisui owitrel withead lowering the yield ,pint value and liffeekhlg the oar li;a l a. PLOAPLEX d - central additive is leafy talkative ti the iled.Ptits VW P . ec fly leseginearei twat is a pcdraerharide deris Mee pure. ram Raid, additivashould be at nencon hallow no .. due ilnobbi Said Gaau 430ffilita ks" teirilled. tower CA now merit levees tan L.._---- _d to 43. -$.0 koidel 14.11 legfingl as required to umbrage taw lilts rates. thschless to the seawater abefuld 'be scut. Piti additiveore be MAW " W1, bgAtt systemic Fi.ri.Pien additive wilt not be degraded by the action of bacteria. Pigmies 1 thaws the AM huk kw at Pia-Pilo: additive in an t1. ('E. 38 rig) amt a tter teat at 1: ,( for 1€ beam- Mg • • Marathon Oil Company Well Name: KBU 42 -7 RD VI Location: Kenai, Alaska. Altai Kai i S3e/ . if fist I 1 ` t.S TL S - ad 9. fC7al1 AIM t1i 4 Low itirtsa.ri.me sr.a.4i1 wit* :a"f::r more. elwi:: iSSC +ice 4-4 Aratert ; eNt a' Specially tteasned as fiark114aePaasehrel aigeat kir dm pliart.IX mimeo a' Performs in h watWq blsa# * Resistant to attack from baciusla t Ternper inure:i b annay be i. ffaliffdifid to 300 (1 ferCk by using thermal ion additives Limitation.* r'aiu . • Waseca' hardness must tpe remove • frieifeedve in high levels et magnesium 'Avid* And Arail 011447 ?i,.ri.i,n ka . aivailLble u /+quests. as an chant 1, Ar c ar'WI% I e tm:t3iwi equipment aria nhateVitift lite precaeu as described in tlie `caite ty Data Shutt (VISTISI. R. LA lilacs additive tt is imekagui ii : ! =.ttr ontatiuwatl, paper gae . /ere: iit iry leization away Front sources of firl ea ignition, and nttdnisintzc cast_ MI SWACO 111 • Marathon Oil Company IFE Well Name: KBU 42-7 RD VI Location: Kenai, Alaska. DRILPLEX DRILPLEx* Mixed Metal Oxide (M2410) is a bentonite extender and secondary shale stabilizer designed to give improved carrying capacity and suspending ability in water-base drilling fluids. It has particular application in drilling of high-angle and horizontal wells, lost circulation Z071.F.s . production reservoirs as a reservoir drill-in fluids (RDF) and for casing milling operations. It is effective curia broad range of temperatures Typical Physical Properties Physical appearance Granular, free flowing, off-white powder Odor Odorless Specific gravity 2.6 - 2.9 pH - 10.0 (1% slurry in water) Solubility (in water) Slight Bulk density 40.51 Ihtft) (648 kg/m Applications DIMPLE"( mixed metal oxide extends the Theology of bentonite slurries by adsorbing onto the day platelets to form a strong, stable complex that is sensitive to anionic products and some salts. It provides improvements in shale stabilization and solids tolerance. The addition of this product structures the bentonite to produce a very flat, shear-thinning rheological profile with low plastic viscosity, high yield point and flat gel strengths. The high viscosities achieved at lower shear rates (3 and 6 rpm) allow excellent hole cleaning capabilities and suspension properties and reduced flow through fractures. Flow at the wellbore face is low-to-zero, so mechanical washout is minimized. The DRILFLEX bentonite complex is an excellent bridging agent and acts to prevent solids invasion when drilling into many reservoirs. The filtereake is external and easily removed. arn.FLEx extender is not compatible with anionic materials. The use of dispersants and anionic polymers (such as CMC and PAC) will destroy the theological advantages. A 1:10 ratio of DRILFLEX extender to bentonite specially designed for this application is normally recommended although salinity and density affect the ratio. Typical concentrations are 0.8 to 12 lb/bbl (23 to 3.4 kg/m) of DR.riamEx extender and 8 to 12 113/bbl (23 to 34 kg/m) of bentonite. Higher concentrations may be needed for casing milling applications. The ratio of DRILFLOC extender to bentonite should be increased to 1:8 for reservoir drilling to ensure that an excess of polymer is present. MI SWA____Cp • 1 TRANSMITTAL LETTER CHECKLIST WELL NAME k:e (1Z r �-' 7 / PTD # ` "� Development Service Exploratory Stratigraphic Test Non - Conventional Well ii FIELD: \L. t� ��lv POOL: `v ('� e�r0 s S P� I Circle Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK ADD -ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. , API No. 50- - - API number are between 60 -69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(0, all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and Togs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce / inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non - Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testin I 1 program. Rev: 1/11/2008 I. WELL PERMIT CHECKLIST Field & Pool KENAI, UP TYONEK BELUGA GAS - 448571 Well Name: KENAI BELUGA UNIT 42 -07RD Program DEV Well bore seg ❑ PTD#: 2080520 Company MARATHON OIL CO Initial Class/Type DEV / PEND GeoArea 820 _ Unit 51120 On /Off Shore On Annular Disposal ❑ Administration 11 Permit fee attached NA 12 Lease _number _appropriate Yes 3 Unique welt name and number Yes 14 _Well located in_a_ defined _pool Yes KENAI, UP TYONEK BELUGA GAS - 448571 governed by CO 510. 1 5 Well located proper distancefrom drifting unit boundary Yes No restrictions as to well spacing other Dian '1500'_from_ Unit boundary 6 Welt located properdistance from other wells Yes 17 Sufficient aoreage_avaitable in_driDling unit Yes � 8 If_deviated, is_ wellbore platinciuded Yes 19 _Operator only affected party Yes 110 Operator has_appropriate bond In force Yes 1 11 Permit can be issued without conservation order Yes Appr Date 112 Petmitcan be issued without administrative_approval Yes SFD 4/7/2008 1 113 Can permit be approved before 15 -day wait Yes 114 _Well located within area and_ strata a t uthorized by_ Injection Order (pu t0# in_comments)_(For NA 15 All welis_within 1 /4_ mite area_o1 review identified (For service _well only) NA 16 Pre produced injector, duration_of pre -production less than 3 months (For service well only) _ _ _NA 17 _Nonconven, gas _conforms to AS31,05,0300„1.A).0,2.A -D) NA Engineering 118 Conductor string_ provided NA Conductor satin KBU 42 -7 (199 -025),_ 19 Surface casing_protects all_known USDWs NA Aquifers ?1300'_tvd exempted, 40 CFR 147.102_(b)(1)(iii). _ Surface casing set in_KBU_42 -7 @_1732' tvd. ,20 CMT v_ol adequate_ to rculate_on conductor & surf csg NA Surface casing set in KBU 42 -7. 121 CMT_v_ol adequate to tie -in long string to_surf csg Yes New 3 -1/2" string wHl_ be_cemented X500' abov_e_window. 122 CMT_will cover_alt known_ productive horizons Yes 23 Casing designs adequate for C,_T, B & permafrost Yes 124 Adequate tankageor reserve pit Yes Rig equipped with steel pits, No_reserve pit planned._ Ali waste to approved disposal well(s). 1 25 _Its_ re-drill, has a 10-403 for abandonment been approved Yes 308 -096 26 Adequate_wellbore separation proposed Yes Proximity_ analysis performed, Nearest segment is abandoned portion of KBU 42 -7 and paths diverge, 127 If_dfverter required, does it meet regulations NA BOP stack_ will already_ be in place. Appr Date '28 Drilling fluid program schematic_& equip list adequate Yes Maximum expected formation pressure 12.0 EMW._ MW_ up to 12.2 ppg_or as needed. TEM 4/10/2008 129 BOPEs,_do they meet regulation Yes To allow running the Xscape system, Marathon requests_ to run only _l _pipe _ram._ This has been_approved before, _ k 30 BOPS_press rating appropriate; test to_(put prig in comments) Yes MASP calculated at 3123 psi w/ 30% mud:70% gas. MASP gas only 4502_psi. 5000 _psi BOP testplanned, 31 Choke_manifold complies. WAN_ RP -53 (May 84) Yes 1 32 Work will occur without operation shutdown Yes 133 is presence of H2S gas probable Ko I is not reported in Cook inlet gas production. 134 _Mechanical_condition of wells within AOR verified (For service well only) NA_ Geology 1 35 Permit can be issuedw /o hydrogen sulfide measures Yes 36 Data_presented on potential overpressurezones Yes Tyonekreservoir pressure may_reach_12.0ppg; will be drilled _with up to_12,2_ppg mud. Appr Date 37 Seismic analysis of shallow gas zones NA SFD 417/2008 X38 Seabed condition survey_(if off-shore) NA 139 Contact name /phone for weekly_ progress reports [exploratory only] Yes Wilt_Tank -713- 296 Geologic Engineering P • Commissioner: Date: Com issione : ¢ / �t e � Co o• ���:' Date �s�7 ` at 1,//— 689 /. • 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. MARATEION n KBU 42 -7RD )- SEC 7 T4N R11W SM April 15, 2008 — April 26, 2008 1 A''' 4 - , 4 ,` r „ , pfol „‘,..,...„ i,... „,,,. , 4-, ?--: ,, ' ii ' i,ta i l i t ..,, ;. s a , i t , fy _. Craig Silva: Senior Logging Geologist Ralph Winkelman: Senior Logging Geologist IE............ EPO CH MARATHON OIL COMPANY KBU 42 -7RD • TABLE OF CONTENTS 1 MUDLOGGING EQUIPMENT AND CREW 2 1.1. EQUIPMENT SUMMARY 2 1.2. PERSONNEL 2 2. GENERAL WELL DETAILS 3 2.1. OBJECTIVES 3 2.2. WELL RESUME 3 2.3. HOLE DATA 3 3. GEOLOGICAL DATA 4 3.1. LITHOLOGY REVIEW 4 3.2. SAMPLING PROGRAM AND DISTRIBUTION 9 4. DRILLING DATA 10 4.1. DAILY ACTIVITY SUMMARY 10 4.2. SURVEY RECORD 18 4.3. MUD RECORD 21 4.4. BIT RECORD 23 • 4.5. DRILLING PROGRESS CHART 24 DAILY REPORTS APPENDIX I FORMATION LOGS APPENDIX II DRILLING DYNAMICS LOGS APPENDIX III • EPOCH M N) MARATHON OIL COMPANY KBU 42 -7RD • 1 MUDLOGGING EQUIPMENT AND CREW 1.1. EQUIPMENT SUMMARY Total Parameter E ui Equipment Type And Position Comments q p Downtime Low gas readings are a persistent concern due to the immediate pre- shearing Standard Air Drive Trap Mounted In of return mud, that falls 14" Ditch Gas Possum Bell FID Total Hydrocarbon 0 straight down through an air Belly; y gap as it exits the flowline Analyzer And Chromatograph and impacts the fluid of a tiny possum belly in a wide splash, before reaching the gas trap. Rate of Penetration (ROP) Primary Drawworks Shaft Encoder On 0 Drum Shaft Pump stroke counters Externally Mounted Magnetic Proximity 0 Sensor Hookload / Weight on bit (WOB) Hydraulic Pressure Cell 0 Drill string torque Hydraulic Pressure Cell 0 Top drive rotary (RPM) Externally Mounted Magnetic Proximity 0 Sensor Standpipe Pressure Hydraulic Pressure Cell 0 Mud flow in / out (MFI / MFO) MFI Derived From SPM / MFO From 0 Flow Paddle Pit volumes Ball and probe sensor 0 III Driller's work station Explosion Proof Touch Screen 0 Casing Pressure Hydraulic Pressure Cell 0 Company man's work station HP COMPAQ 0 Mud Engineer's work station HP COMPAQ 0 Living quarter's work station HP COMPAQ 0 Pit's work station Explosion Proof Touch Screen 0 1.2. PERSONNEL Unit Number: ML006 KBU 42 -7RD Years Days Sample Catchers/ Days Days Mudloggers Experience at Trainees at Technician at well well well Craig Silva 30 27 Rick Frederick 20 Steve Forrest 2 Ralph Winkelman 19 24 Josh Dubowski 20 • El EPOCH 2 MARATHON OIL COMPANY KBU 42 -7RD 2. GENERAL WELL DETAILS • 2.1. OBJECTIVES The objective of KBU 42 -7RD is to successfully drill and log a Multiple Zone Development Gas well in the Kenai Gas Field, with a minimum of hole problems or other concerns. An EXCAPE completion will be performed. 2.2. WELL RESUME Operator: MARATHON OIL COMPANY Well Name: KBU 42 -7RD Field: Kenai Gas Field County: Kenai Peninsula Borough State: Alaska Company Representatives: John Nicholson Dan Byrd Rowland Lawson Mitch Burns Location: 36' FNL 889' FEL, Sec 7 T4N RI1W SM, X= 1,415,050.247' Y= 2,361,730.674' Classification: Multiple Zone Development Gas API #: 50 — 133 — 20488 — 00 — 00 Permit #: 199 - 025 Activity Code: (WBS #s) DD.08.17614.CAP.DRL Rig Name / Type: Glacier #1 / Land / Double Elevation: Ground, RKB 66.0'GL, 85.64' RT Primary Targets: / Target Depths: Upper Beluga: 5197'MD (4871'TvD) Middle Beluga: 5918'MD (5581'TvD) ary Targets: / Target Depths Middle Beluga 6390'MD (6053' TVD) Tyonek (7500'MD, 7162'Tvo) pud Date: April 15, 2008 Total Depth 7926' Total Depth Formation: Tyonek Total Depth Date: April 26, 2008 MWD Company: / Tools Run: Baker Hughes Inteq / Directional MWD Directional Drilling: Baker Hughes Inteq Drilling Fluids Company: M -I Drilling Fluids Logging Companies: Weatherford Wireline Services: Quad - Combo on Shuttle. 2.3. HOLE DATA KBU 42 -7RD Hole Maximum Depth T.D. Mud Deviation Shoe Depth _ F.I.T. g Casing Section MD SSTVD Formation Weight ( inc) MD SSTVD EMW 8 1 /2" 7926' 7502.60' Tyonek 10.2 0.89 3 ' /2" 7905' 7482.42' EXCAPE Completion • El EPOCH 3 ("M") MARATHON OIL COMPANY KBU 42 -7RD 3. GEOLOGICAL DATA S 3.1. LITHOLOGY REVIEW Sand (4130'- 4220') = overall color is very light gray with abundant multicolored lithics, individual grains dominantly clear to translucent quartz and volcanic glass 10% - 20% light green to Tight greenish blue; Tight to medium gray; trace black, dusky red, pale rose, white and yellowish green; very fine upper to rare coarse up per, dominantly fine lower to medium lower; angular to subangular with trace sub rounded; moderate to moderately well sorted; dominantly disaggregated with trace fine grain sandstone; light to medium gray with salt and pepper appearance fragile to friable; non calcareous cement trace thin coals /carbonaceous material; often present as micro -thin laminations in sandstone and more commonly in tuffaceous claystones. Tuffaceous Claystone/Tuffaceous Siltstone (4220'- 4360') = very light gray to light gray with light yellowish gray secondary hues; very soft; irregular shaped cuttings; silty to clayey texture dull, earthy to slightly sparkly luster; hydrophilic; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace very dark brown to black, micro -thin carbonaceous laminations and particles; trace thin coals. Sand (4130'- 4220') = overall color is Tight gray with abundant multicolored lithics, individual grains dominantly clear to translucent quartz and volcanic glass very light green to light greenish gray; light to medium gray; trace black, brownish red, pale rose, white and yellowish green; very fine upper to very coarse up per, dominantly fine upper to medium upper; angular to subangular with trace sub rounded; poor to fair sorting; dominantly disaggregated with trace light gray to grayish brown sandstone; occasionally grading to sandy siltstone /silty sandstone; fragile; non to slightly calcareous. Tuffaceous Claystone /Tuffaceous Siltstone (4360'- 4480') = light bluish gray to light brownish gray with light olive gray secondary hues; very soft to slightly firm; irregular, rounded cuttings; silty to clayey texture; dull to sparkly luster; strong ash content; moderately soluble; slight to moderately expansive when hydrated; non to slightly calcareous fair to good cohesiveness; poor to fair adhesiveness; siltstone commonly grades to a very silty sandstone /sandy siltstone; trace dark brown to black, micro -thin carbonaceous laminations and particles. Sand (4220'- 4920') = consistent minor fractions of matrix supported sandstone and tuffaceous sandstone, but locally nearly all disaggregated; overall color medium dark gray with strong olive gray secondary hues; gray coloration derived from combination of supporting clays and abundant gray to black Iithic grains and minerals; appears multicolored under microscope, with bulk background of colorless to very pale gray transparent to translucent quartz grains against less abundant gray to black argillite- phyllite lithics and mafic minerals, and combination of colorless to pale gray to black grains set against strongly contrasting light to dark green, grayish green, variegated green, orange, reddish orange, red, greenish yellow, pale yellow, pink, "off' gray and many other trace colors from diverse lithic grains and minerals; green colored grains are dominantly greenstone source rock fragments - minerals and orange -red grains are dominantly volcanic rock fragments. Sand /Sandstone/Tuffaceous Sandstone /Conglomeratic Sand /Conglomerate (4220'- 4920') = color characteristics as described; very fine upper to pebble fragments; <20% fraction of very fine to fine; mostly moderate to poorly sorted in medium lower to coarse upper, with increased mode of very coarse to granule in lower zones of sand sections; angular to subrounded, discoidal to sub - spherical; coarser grains generally more rounded than medium grains; note distinctive trace of dark gray to grayish brown dense chert that is well rounded (but not necessarily spherical), smooth and highly water polished; continued >90% disaggregated; spotty blebs of consolidated "liquidy" sandstone suggest a more pervasive soluble tuffaceous clay support; also common are soft cuttings fragments of matrix and grain supported sandstone with abundant inter -grain volcanic ash; trace fragments of fine - medium sandstones with calcite cementation; composition ranges from lithic arenite to dominant compositional graywacke; note localized with various tiny sedimentary rock fragments, including occasional clastic coal. El EPOCH 4 MARATHON OIL COMPANY KBU 42 -7RD Tuffaceous Claystone /Tuffaceous Siltstone/Volcanic Ash /Tuffaceous Shale (4480'- 5080') = all closely associated rocks derived from volcanic ash, gradational to each other and having many characteristics in common; overall represents a clayey-silty-sandy tuffaceous mudstone with many localized variations in color, texture and composition; tuffaceous clay fraction is dominant overall; though no well defined separation of volcanic ash from tuffaceous clay, the volcanic ash is generally more homogeneous, with higher lightness values, greater shard abundance, less reworking by water after airfall deposition, mostly displays a "fresher" less disturbed appearance and occasionally retains textural remnants of its original vitriclastic texture before sediment mixing and chemical alteration; light grayish brown to medium gray colors dominate, with many subtle variations of associated gray and brown primary colors and secondary hues; clayey to silty to ashy to various soft matte textures; also gritty texture when sandy, and many mixed or mottled textures; soft to slightly brittle to local medium brittle; clays are dominantly hydrophilic, soluble in part, moderately adhesive and poor cohesion; locally common micro - thin carbonaceous laminations and particles. Sand /Conglomerate Conglomeratic Sand (5100'- 5240') = medium gray to medium bluish gray with olive gray secondary hues overall, individual grains dominantly light to medium to dark gray to black, clear to translucent quartz and volcanic glass, trace white, Tight green, dusky red and pale rose grains; angular to subangular; fine lower to very coarse upper and pebble/ pebble fragments, dominantly medium upper to lower; poorly sorted; dominantly disaggregated with trace fragile "salt and pepper" sandstone; fine grain; calcareous cement; trace thin coals. Tuffaceous Claystone/Tuffaceous Siltstone (5200'- 5300') = present as trace amounts in the dominantly conglomeratic sand light to medium gray with very light brown to light brownish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clayey texture dull luster; moderate to very soluble; hydrophilic; expansive when hydrated; poor to fair adhesiveness and cohesiveness; trace black, micro -thin carbonaceous laminations and particles; slight to moderately calcareous. • Sand /Conglomeratic Sand (5260'- 5415') = medium gray with olive gray secondary hues overall, individual grains dominantly light to medium translucent gray, medium to dark gray, black, clear to translucent quartz and volcanic glass, trace light to medium green to greenish gray; angular to subangular; fine lower to very coarse upper to pebble (pebble fragments), dominantly medium upper to coarse lower; poorly sorted; disaggregated; moderately calcareous; trace thin coals; trace medium to dark gray fragile tuff -clay, which is soluble supporting matrix of sand - conglomerate; prominent fining upward; abundant diverse pebbles in basal zone; abundant large clasts of quartz, chalcedony, chert, undifferentiated silica, greenstones, meta - sandstones, harder siliceous sandstones, phyllite- argillite, various "softer" sedimentary rock fragments, various minerals (epidote). Sand /Sandstone (5415'- 5530') = note major decrease in grain size, shift in composition and change in overall appearance after 5415'; conglomerate, with its poor sorting drops out, and underlying sand moderately well sorted in fine lower to medium lower range; consistent minor (5 % + / -) very fine sand fraction is mostly glass shards winnowed from volcanic ash; medium gray to medium dark gray with strong olive gray secondary hues; also note consistent "dirty, slightly greenish" salt and pepper appearance; very dominant angular to subangular, discoidal to subdiscoidal; slight improvement in roundedness as sand size increases; very dominant (occasionally to 100 %) disaggregated; consolidated pieces most often grain supported with weak calcite cementation and additional inter -grain tuffaceous clay; lithic arenite to dominant compositional graywacke; olive colors from greenstone lithics. Sand /Sandstone /Conglomeratic Sand /Conglomerate /Tuffaceous Sandstone (5530'- 5600') = note significant change of overall appearance at 5530'; common very coarse and larger grains, poor sorting, grayer and less olive color, common clay and ash blebs, spotty sandstones with abundant inter -grain ash; compositional graywacke; abundant phyllite lithics. n � 5 1 4 OCH tD MARATHON OIL COMPANY KBU 42 -7RD Tuffaceous Claystone /Tuffaceous Siltstone (5580'- 5660') = light gray to Tight bluish gray with light i brown to brownish gray secondary hues; soft to slightly firm; sticky; curdy to clumpy; irregular shaped ! cuttings; silty to clayey; waxy to earthy luster; moderate to very soluble; expansive when hydrated poor to fair cohesiveness; fair to good adhesiveness; non to slightly calcareous trace black, micro -thin, carbonaceous laminations and particles; trace thin coal beds/ carbonaceous shales. Sand /Conglomeratic Sand (5640'- 5790') = medium gray to dark gray with olive gray secondary hues, individual grains dominantly light to medium translucent gray, medium to dark gray, black, clear to translucent quartz and volcanic glass, trace Tight to medium green to greenish gray; angular to subangular; fine lower to very coarse upper to pebble (pebble fragments), dominantly medium upper to coarse lower; poorly sorted; disaggregated; trace to common medium gray tuffaceous claystone acting as a supporting matrix for loose sands; trace thin coals and or carbonaceous shale/ material; matrix of very coarse sand - conglomerate is mix of clay - silt -ash, fragile calcite and silica cementation, volcanic microshards and devitrified ash - shards; discernible fining upward; very diverse large clasts in basal zone; abundant granules - pebbles of phyllite - argillite, greenstones, meta intrusives, meta - volcanics, quartz, chalcedony, chert, undifferentiated silica, meta - sediments, "soft" sediments, calcite - silica replaced sediments and various distinctive trace minerals (jasper, epidote). Sand /Sandstone /Conglomeratic Sand/ Conglomerate (5790'- 5910') = note change in general appearance after 5790'; all still compositional graywacke, but lower lightness values with increased fraction of lithic grains /clasts; dominant dark gray to grayish black with very strong olive black and locally greenish black secondary hues; very abundant (80 -90 %) fraction of phyllite - argillite rock fragments; sorting is improved; note less upward gradation to very coarse and larger, and new distribution to bimodal groups; also note that very coarse- conglomerate group locally becomes dominant mode; abundant greenstone rock fragments are often dark greenish gray color phase; overall diversity drops. Sand/ Sandstone /Conglomeratic Sand /Conglomerate (5910'- 6160') = medium dark gray overall, but • varying lightness values from medium gray to grayish black; very strong olive gray to olive black to local dark greenish gray secondary hues; generally has "dirty" greenish pepper with "sprinkle" of salt appearance; very fine upper to pebble; repeated fining upward sections; nearly all basal zones are slightly to entirely conglomeratic; most sand is moderately sorted in fine upper to medium range, but becomes poorly sorted as grain size shifts to coarse and larger; some zones lack a gradation between medium and very coarse or conglomerate grains- clasts and appear roughly bimodal; dominantly angular to subangular and discoidal to subdiscoidal sands, but common rounded and spherical to sub - spherical conglomerate clasts; very dominantly disaggregated, but locally common consolidated sandstone with inter -grain material ranging from soft soluble tuffaceous clay to crystalline calcite; most sandstone, including both grain and matrix supported, displays complex mix of clay - silt -ash, calcite and silica cementation, glassy and devitrified microshards, devitrified ash and mineral replaced clay -ash; all compositional graywacke; estimate 20 -50% quartz and volcanic glass, trace feldspar, 5 -15% various cryptosilica (chert, chalcedony) and undifferentiated silica, trace -5% of non - identified mineralized aggregates of very fine grains or micro - particles, 50 -75% lithics and mafic minerals; 75 -80% of all lithics are medium to dark gray to grayish black medium grade meta phyllite and argillite rock fragments, 10- 20% are light green to grayish green to variegated green low grade meta greenstone rock fragments, remaining lithics are diverse from many sources. Sand/ Sandstone (6160'- 6290') = note significant change in characteristics after 6160'; very coarse grains are rare; very abundant consolidated sandstone pieces are medium gray, salt and pepper, dominantly fine lower to fine upper, moderately well sorted, dominant grain supported with both crystalline and powdery calcite cement, locally friable and fragile but mostly brittle crunchy to marginally hard, lithic arenite to comp graywacke; note abundant associated brittle to hard very effervescent gray color phase calcareous tuff in same interval; note absence of significant slow drilling, which suggests that the associated hard sandstones and calcareous tuff are easily fragmented. • El EPOCH 6 M MARATHON OIL COMPANY KBU 42 -7RD Tuffaceous Claystone/Tuffaceous Siltstone (6240'- 6340') = claystone is light gray to light bluish gray • with light brown secondary hues; shapeless, amorphous, globular cuttings; soft; silty to clayey to slightly gritty from suspended sands; dull to waxy luster; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non to slightly calcareous; trace black, micro -thin carbonaceous laminations and particles in firmer fragments; trace thin coal beds; trace Tight yellowish brown siltstone; soft to firm; fragile; commonly grading to sandy siltstone/ silty sandstone. Sand /Conglomeratic Sand /Conglomerate (6290'- 6440') = medium light gray with a moderate salt and pepper appearance, individual grains dominantly light to medium translucent gray, clear to trans- lucent quartz and volcanic glass, medium to dark gray to greenish gray, black and trace Tight bluish green; angular to sub angular with trace rounded pebble and pebble fragments, dominantly subangular; very fine lower to very coarse upper, dominantly medium upper to coarse lower; poorly sorted; disaggregated; trace Tight grayish brown ashy clay, commonly acts as supporting matrix for loose sand non calcareous; trace thin coals. Tuffaceous Claystone /Tuffaceous Siltstone (6340'- 6540') = light to medium gray to light bluish gray with light brown secondary hues; shapeless, amorphous, globular cuttings; soft; silty to clayey to slightly gritty from suspended sands; dull to waxy luster; hydrophilic; moderate to very soluble; slight to moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non to slightly calcareous; trace black, micro -thin carbonaceous laminations and particles in firmer fragments; trace thin coal beds. Tuffaceous Claystone/ Tuffaceous Siltstone (6540'- 6680') = light gray with Tight brown secondary hues; very soft; amorphous, shapeless, globular cuttings; slimy to tacky; silty to clayey texture; dull luster; very soluble; very expansive when hydrated; poor cohesiveness; fair to good adhesiveness; slight to moderately calcareous; trace dusky brown to black micro -thin coal and carbonaceous laminations and particles. • Sand /Sandstone /Conglomeratic Sand /Conglomerate/Tuffaceous Sandstone (6440'- 6800') = note that almost all sandstone at 6440'- 6665' is consolidated, fine, moderately well sorted, calcite cemented and closely associated (interbedded) with hard gray colored calcareous tuff; all other sands after 6665' are dominant medium gray to medium dark gray with faint olive gray secondary hues, poorly sorted overall, range from very fine to pebble, mostly disaggregated, mostly tuffaceous clay matrix supported when consolidated, angular to subangular and compositional graywacke with very abundant medium to dark gray phyllite meta rock fragments; consistent trace to locally common calcite- cemented grain supported sandstone; spotty tuffaceous sandstone with discernible micro - shards and larger shards in light gray to very light gray ash matrix; note though sands appear massive, range of characteristics suggest stacking of thin beds and interbeds. Tuffaceous Claystone /Tuffaceous SiltstoneNolcanic Ash (6680'- 7000') = associated rocks derived from volcanic ash, gradational to each other type, and having many characteristics in common; overall constitutes a clayey - silty -sandy tuffaceous mudstone with diverse local variations in color, texture and composition; tuffaceous clay fraction is dominant overall; no clear separation of between the volcanic ash and the tuffaceous clay, but the volcanic ash is generally more homogeneous, with higher lightness values, greater shard abundance, less reworking by water after "airfall" deposition, mostly has a "fresher" less disturbed appearance and occasionally retains textural remnants of its original vitriclastic texture before sediment mixing and chemical alteration; light grayish brown to medium gray colors dominate, with many subtle variations of associated gray and brown primary colors and secondary hues; clayey to silty to ashy to various soft matte textures; also gritty texture when sandy, and many mixed or mottled textures; soft to slightly brittle to local medium brittle; clays are dominantly hydrophilic, soluble in part, moderately adhesive and poorly cohesive; locally common to abundant micro -thin coal- carbonaceous laminations and particles. 1 Li EPOCH 7 di r l MARATHON OIL COMPANY KBU 42 -7RD Sand /Sandstone /Conglomeratic Sand /Tuffaceous Sandstone (6800'- 7300') = medium dark gray to • medium gray; localized patchy medium Tight gray; faint to occasionally medium light olive gray plus very faint Tight brownish gray secondary hues; overall has appearance of grayish pepper with sprinkle of salt; very fine lower to granule; mostly fine lower to coarse lower; overall poor to moderately poor sorting, but uppermost zones of major sand sections can be moderate to moderately well sorted; angular to subangular, discoidal to subdiscoidal; trace to spotty mode that has is rounded to subround and sub - spherical; dominantly disaggregated, most consolidated sandstone has soft tuffaceous clay matrix support; also abundant sandstones with more complex inter -grain material that includes soft mix of clay - silt -ash, calcite and silica cementation, glassy and devitrified microshards, devitrified ash and mineral replaced clay and ash; 100% compositional graywacke ( >30% lithics); estimate 40 -50% quartz and volcanic glass, trace feldspar, 5 -15% various cryptosilica (chalcedony, chert) and undifferentiated silica; trace -5% mineralized aggregates of (difficult to discern) micro - particles, 40 -60% lithics and mafic minerals; 70 -85% of lithics are medium to dark gray to grayish black medium grade metamorphic schistose phyllite rock fragments with a distinctive surface appearance due to partial weathering; 5 -15% of lithics are dark gray to black argillite rock fragments which appear to be closely associated by source to the abundant phyllites; remaining 5 -15% of lithics are diverse overall, but dominated by light green to grayish green to variegated green low grade meta greenstone rock fragments; mafic minerals not readily identifiable with exception of augite and micas; various translucent to opaque black, brownish black, brownish green silicate minerals appear common. Tuffaceous Claystone/Tuffaceous Siltstone (7000'- 7400') = medium gray to Tight brownish gray with light olive gray secondary hues; soft to slightly firm; irregular, massive cuttings; ashy to silty - clayey to soft matte textures; earthy lusters; discernible shards; soluble; little swelling when hydrated; non calcareous; poor cohesiveness and adhesiveness; all part of volcanic ash derived mudstone; common with micro thin carbonaceous laminations - particles. Sand /Sandstone (7300'- 7350') = massive sand with general same characteristics as interval immediate above, but significantly improved sorting; note slightly increased quartz percentage, near to Iithic arenite; more homogeneous overall appearance; apparent increased matrix clay at bottom of interval. Tuffaceous Claystone/Tuffaceous Siltstone (7340'- 7440') = light to medium light gray with light brown secondary hues; soft to slightly firm; irregular, rounded to shapeless, globular cuttings; silty to clayey to slightly gritty texture from abundant suspended sands; dull earthy to slightly waxy luster; hydrophilic; moderate to very soluble; expansive when hydrated; poor to fair cohesiveness fair to good adhesiveness; non calcareous trace to common, very dark brown to black micro -thin carbonaceous laminations and particles; trace very thin coals; trace light gray, very fine sandstone; firm to hard; very calcareous cement; commonly grades to silty sandstone/ sandy silt- stone; trace light gray to grayish white ashy tuff; very calcareous. Sand/ Sandstone (7460'- 7560') = light to medium gray to light greenish gray overall with scattered salt and pepper appearance, individual grains dominantly clear to translucent quartz and volcanic glass, light to medium translucent gray, medium to dark gray to black, trace white and light to medium greenish gray; very fine lower to coarse upper, dominantly fine upper to medium lower; angular to subangular; poorly sorted; dominantly disaggregated with trace fine to medium sandstone; hard; medium gray with salt and pepper appearance; non calcareous; trace very fine sandstone grading to silty sandstone/ sandy siltstone; hard; brittle; very calcareous; trace thin coal. Tuffaceous Claystone /Tuffaceous Siltstone (7540'- 7620') = light to medium gray and light brown to light brownish gray with light yellowish brown secondary hues; soft to moderately firm; irregular, rounded to pdc bit action scooped appearance to shapeless and globular silty to clayey to slightly gritty from suspended sand and strong ash content; dull, earthy to waxy luster; moderate to very soluble; expansive when hydrated; fair to good cohesiveness; poor to fair adhesiveness; non to slightly calcareous trace black, microthin carbonaceous laminations and particles; trace thin coal beds; scattered light gray and light brown siltstone commonly grading to silty sandstone/ sandy siltstone; trace to common light gray to grayish white ashy tuff; fragile; pulverulent; non to very calcareous; commonly acts as a supporting matrix for loose sands. El EPOCH 8 MARATHON OIL COMPANY KBU 42 -7RD Sand /Sandstone /Tuffaceous Sand (7600'- 7760') = light to medium gray with light yellowish brown • secondary hues overall, individual grains dominantly clear to translucent quartz and volcanic glass, Tight to dark gray, black, greenish gray very fine lower to medium lower, dominantly fine; angular to subangular; moderately well to well sorted; firm to friable to very hard; fine to medium grain salt and pepper sandstone is dominantly non calcareous; light gray silty sandstone/ sandy siltstone is very calcareous and brittle; trace Tight gray to grayish white ashy tuff; trace thin coal beds/ carbonaceous shale/ material. Tuffaceous Claystone /Tuffaceous Siltstone (7720'- 7880') = light to medium gray and light brown to Tight brownish gray with light yellowish brown secondary hues; soft to moderately firm; irregular, rounded to pdc bit action scooped appearance to shapeless and globular silty to clayey to slightly gritty text; dull, earthy to waxy luster; moderate to very soluble; expansive when hydrated; fair to good cohesiveness; poor to fair adhesiveness; non to slightly calcareous trace black, microthin carbonaceous laminations and particles; trace light gray to grayish white ashy tuff; light grayish brown siltstone commonly grading to silty sandstone/ sandy siltstone. Sand/Tuffaceous Sandstone (7820'- 7920') = light gray to grayish white overall with individual grains dominantly clear to translucent quartz and volcanic glass, trace amounts of dark gray, black and dark green to greenish gray; very fine lower to trace very coarse lower, dominantly fine upper to lower; angular to subangular; moderately well sorted; very loosely consolidated with white to light pinkish gray, ashy tuff supporting matrix; slightly calcareous; fragile, friable; greater contrast of light color grains (quartz and glass) against the dark colored grains (meta- lithics and mafic minerals); very distinctive traces of red jasper, green chlorite, dark yellowish orange calcareous tuff; dominantly lithic arenite. 3.2. SAMPLING PROGRAM AND DISTRIBUTION KBU 42 -7RD Set Type and Purpose Interval Frequency Distribution Marathon Oil Company c/o C & M Storage, Inc. Washed and Dried 20' 3311 S U.S. Highway 77 A 4078' — 7926' Intervals Schulenburg, TX 78956 Attn: Dave Martens (713) 296 3302 BOX INTERVAL: 4080' — 5120', 5120' — 6100', 6100' — 7000', 7000' — 7926' TD • El EPOCH 9 MARATHON OIL COMPANY KBU 42 -7RD 4. DRILLING DATA • 4.1. DAILY ACTIVITY SUMMARY 4/14/2008: Pull out of hole from 1900' with muleshoe. Lay down muleshoe. Begin cleaning pits. Begin building 450 bbls of Gelplex fluid (pre- hydrated gel) in Hanson Tank. Rig up Expro Wireline Service to run bridege plug. Run in hole and set bridge plug at 4094' (wlm). Pull wireline tools out of hole and rig down Expro wirelining equipment. Pick up, make up and run in hole scraper -mill assembly (mill, scraper, junk basket, bit sub). Continue in hole with 5" drill pipe and tag bridge plug at 4101' (dpm). Slip drill line. Service Topdrive, carrier drivelines, crown and blocks. Finish cleaning pits. Build 450 bbls of new Drilplex drilling mud using the 450 bbls of pre- hydrated gel in the Hanson Tank. Fabricate steam coils for Hanson Tank. Clean trip tank. Set pipe racks. Set new 5" drill pipe in racks. Attempt to displace well with new Drilplex mud. Mill plugged off and unable circulate. Pull 10 stands and able to break circulation. Run back in 10 stands. Break circulation and displace 6% KCL water with new Drilplex mud. Mix and pump dry job. Begin pulling out of hole with mill- scraper assembly. 4/15/2008: Continue pulling out of hole (from 2855') with mill- scraper assembly. Lay down mill, scraper, boot basket, bit sub. Strap, drift, pickup, makeup and run in hole whipstock -mill assembly (anchor, whipstock, 8" mill, 8" watermelon mill, 8 1/2" watermelon mill, 1 joint HWDP, bumper jar, crossovers, MWD) to 477'. Shallow test MWD tool. Pick up, make up and run in hole 5" HWDP to 945'. Continue running whipstock -mill assembly in hole on 5" drill pipe to 4039'. Fill pipe. Run in hole from 4039' and tag retainer at 4101'. Set whipstock. Record bottom of whipstock at 4096' and top of whipstock at 4077'. Begin milling from 4077'. Mill window in 9 5/8" casing from 4078' to 4096'. Continue milling another 20' of new hole (clear of casing) from 4096' to 4116'. Circulate bottoms up. Work through window to "smooth" entry zone. Perform Leak Off Test to 11.1 ppg EMW (9.1 ppg, 3893tvd, 410psi). Check for flow. Pump dry job. Lay down pup joint and single. Blow down all mud lines. Pull out of hole (to 3374') with milling assembly. • 4/16/2008: Continue pulling out of hole (from 3374') with milling assembly. Lay milling assembly (collars, crossovers and mills). Clear and clean rig floor. Lube rig (crown, blocks, Topdrive, carrier). Make up, make up and run in hole directional drilling assembly (crossover subs, NM flex collars, MWD with MAP, short NMDC, string stabilizer, motor, bit). Plug into MWD while running in hole and download programming. Continue running in hole with HWDP to 794'. (Replace 3 joints of HWDP on way in). Continue running in hole on 5" drill pipe to 4039'. Fill pipe. Wash in from 4039' to 4116' (exercising caution while running through window). Drill (rotating and sliding) from 4116' to 4678'. 4/17/2008: Drill (rotating and sliding) from 4678' to 4784'. Note MWD tool malfunctioning while drilling. Lose circulation. Observe loss of 116 bbls. Shut pumps off and stabilize mud loss. Pull out of hole from 4784' to 4705'. Build and pump 30 bbl pill of G -Seal and Safecarb. Lose additional 76 bbls of mud while pumping pill. Stabilize mud loss. Pull out of hole from 4705' to 4000'. Build and pump dry job. Blow down surface equipment. Begin building pre- hydrated Drilplex mud in Hanson tank. Pull out of hole from 4000' to surface. Break and lay down failed MWD collar and begin waiting for arrival of new collar. Handle and stand back remaining directional tools. Continue building mud volume. Troubleshoot PLC power problem. Hold weekly safety meeting with all hands. Service rig and Topdrive. Continue building mud volume, while allowing sufficient time for proper hydration of the new Drilplex mud. Run in hole with lower bottom hole assembly (bit, motor, pony DC, stabilizer) after arrival of new MWD collar. Pick up, make up and orient MWD collar. Run in hole with MWD and remaining bottom hole assembly (flex collars, crossovers, HWDP) to 794'. Test MWD. Continue building mud volume and hydrating new Drilplex mud. Continue running in hole with 5" drill pipe to 4774'. Break circulation. Wash down from 4774' to 4784' with no fill. Drill ahead (sliding) from 4784' to 4799'. Lose circulation. Observe Toss of 250 bbls. Shut pumps off and stabilize mud loss. Pull out of hole from 4799' to 4585'. (After initial mud loss at 4784', record net total mud loss of 477 bbls during 168 minutes of circulating within 4784' -4799' interval). Mix and spot (G -Seal and Safecarb) LCM pill in drill pipe. Run back in hole to 4799'. Break circulation and slowly increase pump rate. No loss of mud at full pump rate. Drill ahead (rotating Y P P p P ( 9 and • sliding) from 4799' to 4848'. Li EPOCH 10 42, MARATHON OIL COMPANY KBU 42 -7RD 4/18/2008: Drill (rotating and sliding) from 4848' to 5009'. Lose circulation. Observe loss of 99 bbls. Shut pumps off and stop mud loss. Pull out of hole from 5009' to 4957'. Build, pump and spot 56 bbl Safecarb pill. No returns while spotting. Begin building volume. Pull out of hole from 4957' to 4500'. Build, pump and load 50 bbl LCM (G -Seal and Safecarb) pill in pipe without losses. Run back in hole from 4500' to 5009'. Break circulation and bring pumps up slowly. Drill ahead from 5009' to connection at 5087', losing "only" 17 bbls of mud. Ream, make connection and turn pumps back on. Observe accelerated mud loss (34 bbls in 8 minutes). Shut pumps off and losses stop. Pull out of hole from 5087' to 5020'. Monitor well. No initial losses. Briefly turn pumps back on and lose 14 bbls in 3 minutes. Pull out of hole from 5020' to 4700'. Briefly pump very slowly and lose 11 bbls in 8 minutes. Build, pump and load 50 bbl LCM (G -Seal and Safecarb) pill in pipe. Pump very slowly for 30 minutes. No initial losses, then lose 25 bbls in last 10 minutes. Run back in hole from 4700' to 5087'. Break circulation and drill (rotating) from 5087' to 5102'. Losses began as soon as the drilling began. Lose 124 bbls in 20 minutes of drilling. Slow pump rate way down and lose another 34 bbls in 12 minutes. Shut pumps off and losses immediately stop. Pull out of hole from 5102' to 4015'. Service rig and Topdrive. Begin building mud volume back up. Fix, re- install and check crown -o- matic. Build, pump and load 52 bbl LCM (G -Seal and Safecarb) pill in pipe. Briefly circulate at high rate and orient MWD tool at shoe. Lose 11 bbls of mud in 4 minutes. Run back in hole from 4015' to 5027'. Build, pump and load 49 bbl LCM (G -Seal and Safecarb) pill in pipe. Break circulation and pump at 60spm while slowly washing down from 5027' to 5044'. No initial losses to 5044'. Increase to 170spm while washing down from 5044' to 5071'. Losses began immediately after increased rate. Lose 64 bbls of mud in 12 minutes. Shut pumps off and losses immediately stop. Pump at 40spm and lose another 31 bbls in 10 minutes. Pull out of hole from 5071' to 4140'. Orient MWD tool and circulate while pulling up through window to 4013'. Lose 30 bbls of mud in initial 5 minutes of pumping at 170spm. Slow pump rate down to 54spm and lose another 19 bbls of mud in 14 minutes while pumping dry job. (Note 513 bbls of mud lost in last 24 hours, and 990 bbls lost in last 48 hours). Pull out of hole from 4013' to top of HWDP at 794'. Pull out of hole standing back HWDP and jars. Break and lay down directional tools (crossover subs, NM flex collars, MWD with MAP, short NMDC, string stabilizer, motor, bit). Grade bit. Clear and clean rig floor. Pull wear bushing. Run in test plug. Rig up testing equipment. Begin testing all BOPE to 250psi Low /3500psi High for 5 minutes. 4/19/2008: Test all BOPE. Test annular preventer to 250psi Low / 3500psi High for 10 minutes. Test all other BOPE (pipe rams, inside and outside kill valves, floor and dart valves, upper and lower Topdrive valves, check valve, choke manifold valves 1 -12, HCR, manual choke and blind rams) to 250psi Low / 5000psi High for 5 minutes.. Perform accumulator drawdown test. Pull test joint. Rig down surface test equipment. Install wear bushing. Blow down lines. Pick up, make up and run in hole LCM spotting assembly (unjetted used insert bit, bit sub, HWDP, jars) to 662'. Run in hole with 5" drill pipe to 4000'. Clear and clean rig floor. Service Topdrive, crown and blocks. Wait for LCM products to arrive on location. Cut and slip drilling line. Change oil in #1 generator. Remove beaver strainers. Wire in new motor for #1 charge pump. Scrub cellar. Prep 3 1/2" completion tubing. Transfer 25 bbls of pre- hydrated Gelplex to pill pit and add mud to 50 bbls. Mix LCM pill with Magna- Fiber, Safecarb, G -Seal and additional mud to 62 bbls. Run in hole from 4000' to 5102'. Pump and spot 50 bbls of pill. No mud losses while pumping 226spm. Record 9 units maximum gas. Pull out of hole from 5102' to 4070'. Mix LCM pill with Magna- Fiber, Cello- flakes, Safecarb and G -Seal to 54 bbls. Pump and squeeze away 34 bbls of pill at 423psi maximum. Record 19 units of delayed trip gas. Mix second LCM pill with Magna - Fiber, Cello- flakes, Safecarb and G -Seal to 35 bbls. Pump and squeeze away all 35 bbls of pill at 355psi maximum. Record 13 units maximum gas. Circulate casing clean of pill material. Run back in hole from 4070' to 5102'. Circulate hole clean of all residual pill material. (Lose 26 bbls of mud pumping at 220spm cleaning hole). Record 6 units maximum gas. Pump dry job. Pull out of hole from 5102' (to 2995'). 4/20/2008: Continue to pull out of hole from 2995' to 2620'. Repair brake linkage. Inspect saver sub, crown and blocks. Continue to pull out of hole from 2620' to 662'. Pull and stand back HWDP and jars. Break and lay down bit sub and bit. Pick up, make up and run in hole directional drilling assembly (bit, motor, string stabilizer, pony DC, MWD with MAP, crossovers, flex collars, HWDP, jars) to 794'. Orient, scribe, and surface test MWD collar on way in. Continue running in hole with 5" drill pipe from 794' to 4015'. Fill pipe and orient motor. Continue running in hole from 4015' to 4961'. Wash down from 4961' to 5102' with no fill. Record 10 units of trip gas. Drill (sliding) from 5102' to 5103'. Pull off bottom. Change out swab in #1 mud pump. Drill ahead (sliding and rotating) from 5103' to 5456'. PalOCH 11 MARATHON OIL COMPANY KBU 42 -7RD 4/21/2008: Drill (sliding and rotating) from 5456' to 5781'. Circulate bottoms up. Check for flow. Get • slow pump rate. Pull out of hole from 5781' to 5025' on wiper trip. Run back in from 5025' to 5655'. Wash down to 5781' with no fill. Record 12 units of wiper gas. Drill (rotating, one slide) to 5903'. 4/22/2008: Drill (rotating) from 5903' to 6269'. Rotation stalling out at 14500fps torque. Continue circulating. Briefly clean and condition mud while adding Floplex, EMI -795 and PA- 10(3.5 %) to improve annular lubrication. Begin drilling ahead from 6269'. Torque remains. Reduce RPMs and raise pump rate to experiment with reduction in wall sticking. Drill (rotating) from 6269' to 6348'. Continued high torque despite making variations in drill parameters. Cease drilling at 6348' due to high torque and circulate and condition. Change out liners and swabs in #2 mud pump. Drill (rotating) from 6348' to 6488'. Significant difficulty drilling last 27' after 6461' due to very high torque. (Also note spotty to abundant metal shavings and shards representing 2 or 3 metallurgies observed in all samples after 6240'). Circulate bottoms up and continue to circulate and clean well. Check for flow. Begin pulling out of hole from 6488'. Observer significant overpull after 6285', and begin working through tight spots. Work (for 2 1/2 hours total) through difficult tight zone from 6223' to 6200'. 4/23/2008: Continue pulling out of hole from 6223' with difficulty. Wash, backream and working through tight spots in several places to 5529'. Pull to 50K over through tight spots and have rotary stall out at 14- 15K ft-Ibs torque. Pull out of hole slick from 5529' to top of bottom hole assembly at 794'. (Correlate tool face to 40 degrees right before pulling through window). Pull bottom hole assembly out of hole, closely inspecting each tool for damage as it is being pulled. Break and lay lower directional tools. Pick up and make up lower group of directional tools. Change out mud motor. Orient motor and MWD. Service rig (crown, blocks, Topdrive. oil change in #1 Carrier, new stop plate on brake linkage, carrier drive lines). Run in hole with bottom hole assembly to 256' and shallow test MWD tool. Continue running in hole with 5" HWDP and drill pipe to 6418'. Break circulation and wash down from 6418' to 6488'. Circulate bottoms up. Record 9 units of trip gas. Observe very thick mud and excessive torque at bottoms up. Begin treating mud for FL control, solids, and pH. Mix Floplex, EMI 795, Gelplex, Drilplex and soda ash to reduce API fluid loss (from 10.4 to 9.2) and thin filter cake (from 2 to < 2). Drill ahead (rotating) from • 6488' to 6537' while treating mud, but experience constant wall sticking, very high torque and stalling problems. Cease drilling at first connection. Circulate, work pipe and continue treating mud. Have difficulty working pipe in both directions. Add 550 gallons of PA -10 lubricant (increasing total oil from 3% to > 4 %). Begin pulling out of hole to window. Pull out of hole from 6537' (to 5277'). 4/24/2008: Continue pulling out of hole (from 5277') to just outside of window at 4100'. Correlate tool face. Displace 100 bbls of treated mud to well. Record 4 units maximum circulation gas. Pull up through window to 4011'. Monitor well with trip tank. Treat mud in pits with 10 sacks of Desco to prepare for later injection. Pump down 250 bbls of mud in pits to fill Hansen Tank. Continue to thin and reduce gel strengths of mud in pits before hauling off with Vac trucks. Clean all pits. Flush, pump through and clean the 3 rig pumps, and all lines, suctions, discharges and manifolds (including 2" cement line, bleeders, kill line, choke line, poorboy degasser, Topdrive). Clean out trip tank and suck down cellar. Add 425 bbls of water to refill pits. Build new Flo -Pro mud system. Weight up to 9.35ppg with barite, and add 2% Lubetex to mud before displacing. Perform various rig maintenance while building new mud system. Change out temperature control above upper cooling tower fan for pump #2, prepare man - riders for certification, install shaker screens for Flo -Pro mud. Clean beaver screens and perform inspections on mud pumps. Put valves in #2 mud pump cylinder 1 suction and #3 mud pump cylinder 1 discharge. Service Topdrive and mud saver valve. Repair defective cable to LEL monitor in cellar and then recalibrate. Mixing 56 bbl batch of Flo -Pro mud in pit #4 to bring total mud volume to 575 bbls (including 45 bbls of mud spacer in pit #5). • El EPOCH 12 MARATHON OIL COMPANY KBU 42 -7RD 4/25/2008: Finish mixing Flo -Pro mud. Run in hole from 4014' to 6475'. Break circulation and begin S pumping down 50 bbl spacer. Wash down last stand from 6475' to 6507' while starting displacement ( at 88gpm, 30rpm, for 2312 strokes). Hole torquing up and stalling rotary at 6507'. Begin displacing annulus (at 164spm, 380gpm, 80rpm). Hole continues torquing up and attempting to pack off. Begin losing partial returns with accelerated pump rate. Reduce flow to 267 gpm. Still losing partial returns. Estimate 150 bbls lost to formation. Shut down pumps. Pull out of hole from 6507' to 4014' to build volume. Monitor well with trip tank. Finish building volume. Circulate at 4014' and swap mud over to Flo -Pro back to surface. Run in hole slowly from 4014'. (Orient tool face for passing through window). Run in hole to 6287'. Circulate and condition Flo -Pro mud. (First batch of Flo -Pro has LCM pill of Safe -Carb, G -Seal and Mix II). Wash and ream without high torque incident from 6287' to 6537'. Drill from 6537' to 6852'. 4/26/2008: Drill ahead from 6852' to logging point at 7926'. Observe 55 units of connection gas, for the first time on well, from connection at 7734'. Observe 126 units of connection gas from connection at 7797' and record 345 units of formation gas from 7808'. Begin increasing the 9.5+ mud weight at connection at 7860'. Observe 126 units (repeat amount) of connection gas from connection at 7860'. Mud weight raised to 9.7+ when drilling from 7860' to 7723'. • Record maximum formation gas on well of 491' units from 7899' within major sand interval. Raise mud weight to 9.9+ while working pipe and circulating out high gas before connection at 7923'. Pick up single and drill from 7923' to 7926' (7588' TVD). Observe 288 units of connection gas from connection at 7923' and record 338 units of formation gas from 7924'. Lay down single after surveying and briefly circulating at 7926'. Circulate bottoms up while working pipe and observe gas levels drop down 55 units before starting to rapidly increase. Observe 1500 units of connection gas from laying down pipe at 7926'. Circulate out high gas and begin raising mud weight to 10.2 +. Perform simulated connection for 10 minutes. Start pumps up and observe leaking wash pipe (packing was bad). Stand back 1 stand and change wash pipe. Run stand back in and begin circulating bottoms up. Achieve 10.2+ mud weight in and out just before recording 42 units of "bottoms up gas" from connection simulation. Continue circulating and observe background of 13 units. 4/27/2008: Finish circulating and conditioning. Check for flow. Pull out of hole from 7923' to 4016' on • wiper trip. Pull generally sticky and tight from 7923' to 6033'. Pull very tight and require backreaming from 7595' to 7535', 7222' to 7080' and 7074' to 6291'. Record 8 to 32 units of gas while backreaming. Pull out of hole free from 6033' to 4016'. Service rig. Run back in hole from 4016' to 7860'. Pick up 5' pup joint to 7865'. Wash and ream from 7860' to 7926'. Circulate bottoms up. Record 1024 units of wiper gas. Circulate out high gas. Circulate around two times. Circulate gas down to 3 units. Pull out of hole from 7926' to 6161' on wiper trip. (Pull 40 -50K over to 7404' and 20 -30K over to 6161'). Run back in hole to 7926', running in slowly near bottom. Circulate bottoms up. Record 81 units of wiper gas. Continue to circulate and condition mud adding 12 drums of Lubetex to reduce torque from 10800 ft -Ibs to 9200 ft-Ibs. Circulate gas down to 3 units. Fill trip tank. Check for flow. Pump dry job. Drop drift. Drop rabbit on wire. Pull out of hole (SLM) from 7926' to top of HWDP at 795'. Pull and stand back HWDP and jars. Pull, break and lay down directional tools. EI EPOCH 13 MARATHON OIL COMPANY KBU 42 -7RD 4/28/2008: Continue to pull, break and lay down directional tools (crossovers, NMCSDPs, MWD with • MAP, short NMDC, string stabilizer, bit). Prepare logging tools on catwalk. Hold pre -job meeting on procedures and safety for handling Weatherford Logging Services' shuttle logging system. Pick up and make up shuttle outer assembly (muleshoe, circulating sub, 4 joints 3 1/2" drill pipe, lower latch, upper latch, 1 joint 3 1/2" drill pipe, float valve, crossover sub). Pick up and make up inner string of WLS Quad - Combo logging tools (with inner latching spear). Install, seat and latch up logging assembly in 3 1/2" drill pipe. Load neutron sources. Run shuttle logging assembly in hole on first joint of HWDP and perform staged pressure check (at 42spm to 177psi, 84spm to 440psi, 127spm to 883psi). Drift all tools with 2 1/2" Weatherford drift on way in. Continue running shuttle logging assembly in hole on 19 more joints of 5" HWDP to 781'. Continue running shuttle in hole on 5" drill pipe. (Pull corrosion ring from first stand of drill pipe). Run shuttle in hole on 5" drill pipe to just outside window at 4063'. Perform staged pressure check (at 42spm to 279psi, 84spm to 572psi, 127spm to 1026psi). Continue in hole to 6398'. Perform staged pressure check (at 42spm to 341 psi, 84spm to 648psi, 127spm to 1100psi). Continue in hole to 7722'. Perform staged pressure check (at 42spm to 357psi, 84spm to 650psi, 127spm to 1160psi). Continue running in hole and tag bottom (with no fill) at 7926'. Pull back up to 7909'. Make up Topdrive and break circulation. Circulate bottoms up. Record 51 units of trip gas. Continue to circulate, clean and condition mud (for 2 complete circulations before logging pass). Note pipe sticking, high hookload and very high torque when pulling up and working pipe after initially breaking circulation. Begin adding 4 drums of Lubetex to mud to ease sticking problem during first circulation. Finish circulating and pull (1 stand and a single) to 7797'. Drop and pump down Messenger dart to engage assembly. Pressure up until the seating plug is sheared and inner string released. Push out and deploy shuttle logging assembly to 7911'. Check for flow. Pump dry job. Pull out of hole at controlled rate of 30' per minute logging up with Quad -Combo from 7911' to 2864'. Pull out of hole at normal rate from 2864' to surface. Stand back 5" HWDP while pulling out. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and Toad off Weatherford Logging Service Quad -Combo tools. Break and Toad off running equipment (upper and lower latches, float valve, circulating sub, crossover sub, muleshoe). Clear rig floor. Service rig. Lubricate carrier, Topdrive, block and crown and pipe spinner. Change oil in carrier motor, Grease drive lines. 4/29/2008: Continue servicing rig while waiting on Weatherford Wireline Services to process Quad - Combo data. Slip and cut 477' of drill line. Repair set and check crown -o- matic. Change out drawworks control joy stick. Pick up, make up muleshoe to first stand of HWDP and run in hole "open- ended" on 5" HWDP to 605' and 5" drill pipe to 4077'. Continue to wait on processing of logging run data. Continue rig maintenance. Repair Topdrive rpm sensor. Put hammer union ends on new pop -off line hose for #3 pump. WWS unable to complete data processing. Run in hole from 4077' to 7880', taking overpull weights at 500' intervals. (Rabbit in derrick). Fill pipe and back side with 55 bbls. Pump 50 bbl LCM pill to back side. Pull out of hole from 7880', filling the backside at 2.0 bpm, and from 6660' to 4060' (just above window at 4078'), filling backside at 4.4bpm. Close annular to minimize losses. Estimated total losses at 709 bbls at this point. Mix LCM pill. Open annular, pump 50 bbl LCM pill and chase with 70 bbls to end of drill pipe. While chasing down pill, pump pressure increased from 35psi to 185psi at 1570 strokes (73 bbls) pumped. Monitor well. Losses diminishing from initial 20 bbls per hour to 9.5 bbls per hour over 4 hour period while building surface volume and LCM pill. Pump and chase 58 bbl LCM pill (with 69psi initial, 165psi high, flow out a 16 %) and observe 30 bbls of losses. Continue to monitor well while mixing surface volume and mixing LCM pill. Estimated losses to 1074 bbls at this point. El EPOCH 14 MARATHON OIL COMPANY KBU 42 -7RD 4/30/2008: Move pipe down slightly from 4060' to 4068'. Continue building mud volume in pits. • (Weatherford sent corrupted files to research facility in England to attempt to recover data). Build LCM pill (with Magnafiber, G -Seal, Safecarb). Monitor well with trip tank. Finish building mud. (Lose 96 bbls of mud in 10 1/2 hours while building volume). Close annular preventer. Squeeze 45 bbls of LCM to formation. Shut down pumps and monitor pressures. Squeeze 10 bbls of mud to chase pill. Shut down pumps and monitor pressures. Bleed off pressure, open annular preventer and monitor well. Mix 10.4ppg LCM pill. Move pipe down to 4079'. Pump 56 bbls of LCM (at 52spm, 80psi) and displace with 10 bbls 9.1 ppg mud (to end of drill pipe). Close annular preventer. Squeeze down 50 bbls with 9.1 ppg mud at 1 bpm, 22spm, 120psi max). Monitor pressures. Open preventer and monitor well. Minor fluid loss (2 1/2 bph). Pull out of hole from 4079' to 3953'. Inspect #1 and #2 mud pumps, and flush clean. Circulate gas out from 3953'. Record maximum gas of 502 units at 1490 strokes, 302 units at 3140 strokes, a second peak to 360 units at 3750 strokes and bottoms up of 277 units at 4370 strokes. Continue circulating gas down to fluctuating background of 18 -28 units. (Note 145 bbls of static and circulating losses and 105 bbls squeezed away for net mud loss of 250 bbls in last 24 hours). 5/1/2008: Continue circulating and conditioning mud. Build LCM pill. Increase mud weight to 9.7ppg. Increase pump rate from 124spm to 148spm and immediately begin losing mud. Stage pump rate down to 74spm but still lose 45 bbls in 40 minutes. Fill trip tank and monitor well through trip tank. Run in hole from 3953' to 4060'. Initially lose static 11 bbls, then losses stop. Pump 50 bbl 10.2ppg LCM pill (at 42spm) and displace with 50 bbls mud. Lose 60 bbls spotting pill. Pull out of hole from 4060' to 3953'. Make up floor valve under Topdrive. Make up second 10.2ppg LCM pill. Close annular preventer. Squeeze 58 bbls LCM pill. Open annular preventer and flow back 2 bbls. Monitor well via trip tank while mixing LCM pills and conditioning mud. 5/2/2008: Continue circulating and conditioning mud at 3953' while monitoring losses with trip tank. Build 56 bbl LCM pill (with 45 bbls water, 2.5ppb Flo -Vis, 3ppb PolyPac, 22ppb KCL, 15ppb G -Seal, 10ppb MagnaFiber, 20ppb each Safecarb 2/10/20/40/250, 7ppb each MI -Seal fine /medium, 7ppb medium • Nutplug, 8ppb coarse Nutplug). Build mud volume and top off pits. Mix 50 bbls of 9.7ppg Flo -Vis mud. Static losses 0.5 bph. Circulate out at 3953' (6500 strokes at 101spm). Record 368 units maximum gas. Run in hole from 3953' to 5403', monitoring well through trip tank. Circulate out through gas buster (6287 strokes at 77spm). Record 634 units maximum gas. Shut off pumps for 5 minutes. Briefly circulate (476 strokes at 51 spm). Record 156 units maximum gas. Shut off pumps and monitor for 15 minutes. Well static. Circulate out (4668 strokes at 72spm). Record 400 units maximum gas. Shut off pumps and monitor for 5 minutes. Well is static. Circulate and condition mud (6510 strokes at 101 spm). Record 72 units maximum gas. Shut off pumps and monitor for 5 minutes. Well is static. Run in hole from 5403' to 6402', monitoring well through trip tank. Circulate out through gas buster and continue to circulate and condition mud after high gas. (13281 total strokes at 77spm). Record 506 units bottoms up gas (at 5156 strokes) and 739 units maximum gas (at 8692 strokes). Maximum gas apparently from bubble of gas moving uphole. Shut off pumps and monitor for 5 minutes. Well is static. Run in hole from 6402' to 7160', monitoring well through trip tank. Circulate out through gas buster and continue to circulate and condition mud after high gas. (15040 total strokes at successive rates of 44/85/55/85 spm). Record 467 units bottoms up gas (at 6211 strokes) and 662 units maximum gas (at 9900 strokes). Maximum gas apparently from gas moving uphole. Shut off pumps and monitor for 17 minutes. Well is static. Run in hole from 7160' to 7852', monitoring well through trip tank. Circulate out through gas buster and continue circulating at report time (to 9108 strokes at 85 spm). Record pre- bottoms up gas peak of 862 units (at 6984 strokes) and, at report time, observe 819 units of gas at 9108 strokes (before eventually recording maximum gas of 2385 units at 10065 strokes from gas migrating uphole). • Ell EPOCH 15 MARATHON OIL COMPANY KBU 42 -7RD 5/3/2008: Continue circulating at 7852' (from 9108 strokes) to 14358 total strokes. Record maximum gas of 2385 units at 10065 strokes from gas that has apparently migrated uphole. Circulate gas down to 91 units. Shut off pumps and monitor for 4 minutes. Well is static. Run in hole from 7852' and tag bottom at 7926'. Pull back to 7912'. Circulate out and record 2115 units of maximum gas at 8676 strokes. Continue to circulate gas down (to 51 units) and condition hole. Circulate for 13194 total strokes. Shut off pumps and monitor for 3 minutes to check for flow. Well is static. Pull out of hole from 7912' to 7295' on short wiper trip. Run back in hole from 7295' to 7922'. Circulate bottoms up and record 2126 units of wiper gas (at 8200 strokes). Continue to circulate, build mud weight and condition well for 29737 strokes total. Mud weight increased from 9.8ppg to 10.1 ppg. Gas circulated down to near 0 units. Check for flow. Well static, no losses. Pull out of hole from 7922' to 7280'. Run back in hole from 7280' to 7922'. Pull up to 7917'. Circulate bottoms up (with 10.1 ppg mud) and record 30 units of wiper gas (at 8400 strokes). Circulate and condition hole (for 12593 strokes total). Fill trip tank. Pump dry job. Pull out of hole from 7917' to surface. Stand back HWDP. Break and lay down muleshoe. Clear and clean rig floor. Pull wear bushing. Run in test plug. Rig up testing equipment. Test annular preventer to 250psi Low / 3500psi High for 10 minutes. Test all rig alarms. Begin testing all other BOPE (upper pipe rams, variable rams, upper and lower Topdrive (kelly) valves, floor and dart valves, check valve, choke manifold valves 10- 11 -12) to 250psi Low / 5000psi High for 10 minutes. 5/4/2008: Continue testing BOPE (inside and outside kill valves, HCR, manual choke, blind rams, choke maniforld valves 1 -9) to 250psi Low / 5000psi High for 10 minutes. Perform accumulator drawdown test. Pull test joint. Rig down surface test equipment. Install wear bushing. Pick up, make up and run in hole clean out assembly (8 1/2" mill tooth bit, bit sub, 4 joints 5" HWDP, jars, 17 joints HWDP) to 662'. Continue running in hole with 5" drill pipe to 5839'. Break circulation and fill pipe at 1421', 2745', 4073' and 5524' while running in. Continue in hole at slower rate from 5839' and take 20K weight at 7803'. Wash and ream from 7803' to 7808'. Run in hole very slowly from 7808' and tag fill at 7916'. Wash and ream from 7916' to bottom at 7926'. Circulate bottoms up. Record 486 units of trip gas. Circulate out high gas and condition hole. Briefly monitor. Well static. Pull out of hole from 7926' to 7321' on short • wiper trip, then back to 7926'. Circulate bottoms up. Record 39 units of wiper gas. Circulate and condition hole. Shut down pumps and monitor for 13 minutes to check for flow. Well is static. Pull out of hole very slowly from 7926' to 7290'. Break circulation and fill pipe. Briefly monitor well. Well static. Pull out of hole slowly from 7290' to 4009'. Monitor well. Prepare to pull out hole laying down 5" drill pipe. 5/5/2008: Spot in Expro control line spools and load pipe racks with 17 production modules for upcoming EXCAPE completion string run. Rig up to lay down drill pipe. Pull out of hole from 4009' laying down 5" drill pipe, 5" HWDP, crossovers, flex joints, jars, bit sub, bit. Run in hole with 5" drill pipe to 2840'. Monitor well. Well losing approximately 1 bbl /hr. Continue running in with 5" drill pipe to 4023'. Fill pipe. Pump and spot LCM pill. Record 8 units maximum gas. Shut down pumps and monitor well for 20 minutes. Well static. Pull out of hole from 4023' laying down 5" drill pipe. Monitor well. Well losing <0.5 bbl /hr. Run in 26 stands of 5" drill pipe in derrick to 1690'. Pull out from 1690' laying down 5" drill pipe. Blow down mud lines and flush mud pumps. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, spinners, and tongs. Clear and clean rig floor. Prepare for running EXCAPE production string. Pull wear ring. Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install fill -up tool. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. 5/6/2008: Conclude pre job meeting on procedures and safety for running 3 1/2" EXCAPE completion string. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull down to floor and tie off control lines. Rig up Pollard Wireline Service to perform banding of control lines. Check that previously staged out modules are in correct order on short pipe rack. Run in hole with 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract. Check floats. Carefully pick up, make up and run in hole 3 1/2" completion section with 17 EXCAPE modules (plus 27 pups and a flapper removal) to 2282'. Circulate and fill pipe. Record 2 units of gas. Continue running in hole with 3 1/2" EXCAPE completion string to near casing shoe at 4031'. Circulate and fill pipe. Record 4 units of gas. Continue • running 3 1/2" EXCAPE completion string in hole from 4031' to 7905'. Rig up circulating swage and line. [I EPOCH 16 C -4 MARATHON OIL COMPANY KBU 42 -7RD 5/7/2008: Rig up circulating line and head. Circulate, bringing pumps up slowly to handle LCM over • shakers. Terminate control lines and cable. Lower sheave with crane and rig down, Toad off. Continue circulating. Pull 135K in attempt to move pipe, but it did not come free. Slack off to 55K and work pipe while circulatiing. Add 0.5% Lubetex and continue to work pipe. Circulate bottoms up and record 57 units of trip gas (with 10.1 mud all around). Unable to free up after open hole pass with Lubetex. Pipe appears differentially stuck. Continue to condition mud. Stop pumping and monitor well for losses. Losing 0.5 bbls per hour. Rig up Expro Wireline Service equipment. Hold brief pre -job meeting on wireline operations. Run gamma correlation assembly in hole to find perforating positions of EXCAPE modules. Do logging pass with gamma tool and pull out of hole. Use gamma to find correlation difference. If completion string can be freed, the shoe will be adjusted up 8.00' to 7987.82'. Rig down Expro WLS. Rig up circulating line and head. Pump slowly (11spm, 200psi, 21gpm), pull to 135K, slack off, shut pumps off and pull 135K again. Unable to pull free on both attempts. Marathon decided against harder pulls on completion string since almost all production objectives can be achieved by perforating and fracturing at the current depths, the EXCAPE control lines could be irrepairably damaged. Shoe at 7905.8Z where presently stuck. Circulate. Mix inhibited mud in pits. Pump (2907 stks, 57spm, 284gpm, 275psi) 135 bbls of SMB and Conqor 303A treated mud and spot as corrosion inhibitor in the annulus. Record 26 units maximum gas. Rig down circulating head. Rig up cementing head and line up BJ cementers. Head has plug installed and a wash -up tee. Hold 2 pre -job safety meetings with BJ on procedures and safety for cement job. Pump 6.6 bbls of water to fill lines and pressure test cementing lines to 3555psi. Mix and pump 50.7 bbls of 10.3ppg Sealbond Sweep, using 46.3 bbls of water. Then pump 196 bbls of batched 10.5ppg lead cement slurry (338 sacks of Class G cement plus accelerator chemicals mixed with 101.75 bbls water to yield 12.658 gal /sk and 3.314 cuft/sk) and follow with 152 bbls of batched 15.8ppg tail cement slurry (689 sacks of Class G cement plus accelerator chemicals mixed with 80.60 bbls water to yield 4.911 gal /sk and 1.160 cuft/sk). Close valve to head and open wash -up valve. Pump 11 bbls water to wash lines from floor to slop tank until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 5.4 bbs of KCL brine. Displace cement with 67.7 bbls of 6% KCI brine. (Total displacement is 68.2. bbls). Record maximum 12 units of gas while • displacing. Bump plug with 1133psi over displacement pressure (2802psi total). (Note 15 bbls of cement lost to hole during pumping). Bleed off. Check floats. Cement in place at 14:57pm. Wait on cement and monitor well. Flush, blow down, rig down and lay down cementing head and lines. Clear and clean rig floor. Flush and blow down all mud lines, mud manifold, mud pump lines, choke, choke lines and fill and trip lines. Flush out stack. Pump out and clean trip tank. Begin sucking out and cleaning pits. Turn over Hansen Tank. Pump remaining mud and other fluids to Vac trucks for haul -off. Lay down mousehole. Remove and load off drip pan. Load up trailers. Fuel up camp generator. Fill camp water. Wait on cement. Monitor well. Well static 4 hours after cement in place, then initial tiny fluid loss increases to >1.0 bbl per hour by report time. Replace falling fluid levels with water from rig floor and monitor. 5/8/2008: Continue to wait on cement and monitor well. Continue minor rig -down procedures. Load and transport demobilized rig parts, equipment and facilities. Clean vacated areas. Finish cleaning pits and hauling off remaining fluids. Rig down flow nipple, riser, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Rig up bridge cranes to BOP stack. Rig down standpipe manifold. Rig down #3 mud pump. Pick up BOP stack. Run control and electric lines out tubing head outlet. Set weight on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP stack and spools. Make final clean cut on 3 1/2" casing. Run control lines through 3 1/2" packoff and terminate. Set and install packoff. Install Swagelok fittings around control lines. Run in lock -down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3 1/16" 10M tubing head adapter to the 3 1/16" 10M tree, terminating control lines through the bottom flange. Set 2- way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Glacier No.1 not needed for completion. Rig down and move Glacier No.1 rig modules, rig equipment, support trailers,I communication equipment, camp trailers and camp accessory equipment to the nearby KBU 14 -8 location. Ralph Winkelman and Craig Silva rig down EPOCH's Rigwatch 8.7 system, gas system, Unit 6 computers and equipment, all external workstations and wireless network to camp, Starband Satellite system, site rig • communications and unit power. Unit #6 is organized and secured for moving to KBU 14 -8. El EPOCH 17 • • • MARATHON OIL COMPANY KBU 42 -7RD 4.2. SURVEY RECORD Rectangular Rectangular Measured Inclination Azimuth TVD Vertical Coordinate Coordinate Closure Closure DLS Depth Section Azimuth +) NIS ( -) ( +) EIW ( -) Tie in 4034 24.03 150.20 3818.26 546.53 - 959.16 563.56 4077 23.68 150.27 3857.59 546.62 - 974.25 572.19 1129.86 149.57 0.83 4277 28.02 163.95 4037.70 598.77 - 1054.38 605.14 1215.70 150.15 3.68 4341 28.26 167.11 4094.13 620.07 - 1083.60 612.68 1244.81 150.52 2.36 4404 27.51 171.17 4149.82 642.12 - 1112.52 618.24 1272.76 150.94 3.24 4467 25.91 177.97 4206.11 664.94 - 1140.66 620.96 1298.73 151.44 5.47 4531 25.66 182.73 4263.75 688.96 - 1168.48 620.80 1323.15 152.02 3.26 4595 26.14 188.15 4321.33 714.23 - 1196.28 618.14 1346.54 152.67 3.77 4658 25.24 192.70 4378.10 739.84 - 1223.12 613.22 1368.23 153.37 3.44 4721 24.81 196.13 4435.19 765.42 - 1248.93 606.59 1388.44 154.09 2.40 4782 25.84 201.93 4490.34 790.95 - 1273.56 598.07 1406.99 154.85 4.40 4845 25.86 205.51 4547.04 818.21 - 1298.69 587.02 1425.20 155.68 2.48 4909 25.32 213.71 4604.78 845.78 - 1322.68 573.41 1441.63 156.56 5.59 4972 23.84 221.18 4662.08 871.76 - 1343.48 557.55 1454.58 157.46 5.46 5035 22.84 224.82 4719.93 896.13 - 1361.74 540.54 1465.10 158.35 2.78 5097 22.27 224.81 4777.19 919.19 - 1378.61 523.78 1474.76 159.20 0.92 5158 19.71 226.61 4834.13 940.29 - 1393.88 508.16 1483.62 159.97 4.33 5221 17.51 228.24 4893.84 959.54 - 1407.49 493.37 1491.45 160.68 3.59 5285 15.75 227.98 4955.16 977.01 - 1419.71 479.73 1498.58 161.33 2.75 5350 14.57 225.78 5017.89 993.33 - 1431.32 467.32 1505.68 161.92 2.02 5413 12.59 223.65 5079.13 1007.67 - 1441.82 456.90 1512.48 162.42 3.24 5476 10.75 224.53 5140.83 1020.06 - 1450.98 448.04 1518.57 162.84 2.93 5539 9.05 225.38 5202.89 1030.56 - 1458.64 440.39 1523.68 163.20 2.71 5602 6.97 227.27 5265.27 1039.01 - 1464.72 434.06 1527.68 163.49 3.33 5665 4.62 227.13 5327.94 1045.11 - 1469.04 429.39 1530.51 163.71 3.73 5728 2.65 229.94 5390.81 1048.92 - 1471.70 426.41 1532.23 163.84 3.14 5791 1.61 247.08 5453.77 1051.00 - 1472.99 424.48 1532.93 163.92 1.92 El EPOCH 18 • M i • ,"� MARATHON OIL COMPANY KBU 42 -7RD Vertical Rectangular Rectangular Closure Measured Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS Depth ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft) (ft ) (ft ) (ft) (ft) (deg) ( deg /100ft ) 5980 1.45 275.72 5642.72 1052.68 - 1472.54 420.44 1531.38 164.06 0.65 6042 1.54 273.06 5704.70 1053.40 - 1472.42 418.82 1530.82 164.12 0.18 6105 1.62 260.35 5767.68 1054.36 - 1472.52 417.10 1530.45 164.18 0.57 6168 1.55 261.18 5830.65 1055.48 - 1472.80 415.38 1530.26 164.25 0.12 6232 1.67 263.13 5894.63 1056.60 - 1473.04 413.60 1530.01 164.32 0.21 6295 1.69 264.97 5957.60 1057.70 - 1473.24 411.76 1529.70 164.38 0.09 6358 1.72 263.37 6020.57 1058.81 - 1473.43 409.90 1529.38 164.45 0.09 6421 1.65 250.39 6083.55 1060.08 - 1473.84 408.10 1529.30 164.52 0.61 6483 1.54 235.68 6145.52 1061.53 - 1474.61 406.58 1529.63 164.59 0.68 6546 1.52 236.62 6208.50 1063.04 - 1475.55 405.18 1530.17 164.65 0.05 6609 1.40 241.85 6271.48 1064.45 - 1476.37 403.80 1530.60 164.70 0.28 6672 1.54 239.26 6334.46 1065.85 - 1477.17 402.40 1530.99 164.76 0.25 6735 1.32 234.87 6397.44 1067.26 - 1478.02 401.08 1531.47 164.82 0.39 6798 1.38 234.47 6460.42 1068.62 - 1478.87 399.86 1531.98 164.87 0.10 6862 1.26 234.77 6524.40 1069.96 - 1479.73 398.66 1532.49 164.92 0.19 6925 1.14 234.97 6587.39 1071.17 - 1480.49 397.58 1532.94 164.97 0.19 6988 1.26 238.27 6650.38 1072.35 - 1481.21 396.48 1533.36 165.01 0.22 7052 1.02 239.89 6714.36 1073.47 - 1481.87 395.39 1533.71 165.06 0.38 7115 0.95 238.15 6777.35 1074.42 - 1482.42 394.46 1534.01 165.10 0.12 7177 0.89 249.92 6839.35 1075.25 - 1482.86 393.57 1534.20 165.14 0.32 7240 1.04 246.74 6902.34 1076.09 - 1483.25 392.59 1534.33 165.17 0.25 7304 0.99 257.97 6966.33 1076.94 - 1483.60 391.51 1534.39 165.22 0.32 7367 0.96 257.18 7029.32 1077.67 - 1483.83 390.47 1534.34 165.26 0.05 7429 0.94 250.60 7091.31 1078.42 - 1484.11 389.48 1534.37 165.30 0.18 7492 1.00 247.77 7154.30 1079.25 - 1484.49 388.48 1534.48 165.33 0.12 7555 1.00 236.67 7217.29 1080.18 - 1485.00 387.52 1534.73 165.37 0.31 7617 1.08 242.23 7279.28 1081.17 - 1485.57 386.55 1535.04 165.42 0.21 7680 0.93 237.77 7342.27 1082.13 - 1486.12 385.59 1535.33 165.45 0.27 7743 0.89 249.56 7405.26 1082.96 - 1486.57 384.70 1535.54 165.49 0.30 HI EPOCH 19 • 0 ! ( --- ) A4 MARATHON OIL COMPANY KBU 42 -7RD Rectangular Rectangular Measured Vertical Closure Depth Inclination Azimuth TVD Section Coordinate Coordinate Closure Azimuth DLS ( +) N/S ( -) ( +) E/W ( -) (ft) (deg) (deg) (ft) (ft) (ft ) (ft) (ft ) (deg) ( deg /100 ft) 7806 0.94 245.66 7468.25 1083.77 - 1486.95 383.77 1535.67 165.53 0.13 7869 0.89 252.26 7531.25 1084.56 - 1487.31 382.83 1535.79 165.57 0.19 * *7926 0.89 252.26 7588.24 1085.22 - 1487.58 381.99 1535.84 165.60 0.00 * *Projection El EPOCH 20 • M ! • "`""""�" MARATHON OIL COMPANY KBU 42 -7RD 4.3. MUD RECORD Contractor: MI Drilling Fluids Mud Types: DRILPLEX 4078' - 6537'; 6% KCI Flo-Pro NT 6537' - 7926' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH AIk CI- Ca+ 4/14/08 4101 / 3879 9.0 105 21 39 22/26/ 5.1 <2 4.0 0/96 Tr 8.0 12.4 2.0 4800 20 4/15/08 4077 / 3857 9.0 85 21 26 11/14/15 4.8 1 4.0 0/96 Tr 8.0 12.1 1.6 4200 360 4/15/08 4116 / 3893 9.1 100 21 38 22/26/28 5.6 <2 4.4 0/96 Tr 8.0 12.0 1.5 4000 240 4/16/08 4120 / 3896 9.1 90 19 32 23/28/29 7.8 1 4.6 0/95 Tr 8.5 11.5 1.1 4000 320 4/16/08 4646 / 4367 9.2 22 75 54/56/56 12.6 1 5.0 0/95 Tr 9.0 11.5 1.5 3900 240 4/17/08 4784 / 4493 9.1 95 21 53 36/38/38 10.4 1 4.0 0/96 Tr 9.0 11.5 1.4 3300 200 4/17/08 4946 / 4638 9.1 91 20 47 30/33/33 11.0 1 4.0 0/96 Tr 10.0 12.0 1.6 3000 160 4/18/08 5102 / 4782 9.1 90 20 40 24/27/27 5.4 1 5.0 Tr /95 0.25 10.0 11.5 1.2 2800 300 4/19/08 5102 / 4782 9.2 87 20 30 10/13/14 5.5 1 5.0 0/95 Tr 10.0 11.0 1.0 2600 280 4/20/08 5115 / 4794 9.2 88 19 32 21/25/26 7.4 1 5.5 Tr /95 Tr 10.0 11.4 1.2 2600 240 4/20/08 5422 / 5088 9.3 100 19 36 24/28/29 8.4 1 6.0 Tr /94 Tr 11.0 11.3 1.1 2600 240 4/21/08 5605 / 5268 9.4 100 18 51 35/40/42 8.6 1 6.0 1/93 Tr 11.0 11.2 1.0 2500 240 4/21/08 5845 / 5508 9.5 100 19 56 44/49/52 9.4 1 6.5 2/92 Tr 12.0 11.1 1.0 2500 240 4/22/08 6348 / 6011 9.6 100 17 41 36/38/ 9.5 4/87 0.1 12.5 10.7 1.0 2300 120 4/22/08 6488 / 6151 9.5 100 17 38 33/37/39 9.2 2 8.5 4/88 Tr 12.5 10.5 1.1 2200 80 4/23/08 6488 / 6151 9.4 100 16 31 23/25/26 10.4 2 7.5 3/90 Tr 12.0 10.5 1.0 2200 80 4/23/08 6537 / 6200 9.5 100 18 44 35/38/39 9.2 <2 8.0 4/88 Tr 12.0 10.7 1.1 2100 80 4/24/08 6537 / 6200 9.1 45 10 17 8/11/12 6.8 <1 4.0 2/94 0.0 0.0 9.0 0.3 35000 40 4/25/08 6537 / 6200 9.3 48 12 16 6/8/8 5.8 <1 5.0 2/93 0.0 0.0 9.0 0.3 35000 40 4/25/08 6853 / 6516 9.3 50 14 16 8/10/11 5.2 <1 5.0 2/93 Tr 2.0 9.0 0.3 37000 40 4/26/08 7496 / 7158 9.5 53 15 20 8/12/15 5 1 6.0 2/92 Tr 4.375 9.3 0.2 35000 60 4/26/08 7926 / 7588 10.3 57 16 25 11/13/14 5.3 1 10.0 3/87 0.5 5.0 8.8 0.2 33000 60 4/27/08 7926 / 7588 10.2 53 17 26 10/13/15 4.8 1 10.0 4/86 0.25 5.0 9.0 0.3 33000 60 4/28/08 7926 / 7588 10.4 58 18 27 11/13/14 5 1 11.0 5/84 0.1 5.0 8.6 0.1 30500 60 4/29/08 7926 / 7588 10.4 58 18 27 11/13/14 5 1 11.0 5/84 0.1 5.0 8.6 0.1 30500 60 [I EPOCH 21 • • 411 MARATHON OIL COMPANY KBU 42 -7RD Contractor: MI Drilling Fluids Mud Type: 6% KCI Flo -Pro NT 6537' - 7926' DATE MD / TVD MW VIS PV YP GELS FL FC SOL OIL /H20 SD MBT pH Alk CI- Ca+ 4/30/08 7926 / 7588 9.1 63 13 15 7/9/ 7.4 1 3.0 0/97 0.0 0.0 10.0 0.2 30000 40 5/1/08 7926 / 7588 9.7 60 17 17 8/10/ 6.0 1 7.5 0/93 0.0 0.0 8.3 0.5 30500 80 5/2/08 7926 / 7588 9.8 60 17 17 8/10/ 6.0 1 7.5 0/93 0.0 0.0 8.3 0.5 30500 80 5/3/08 7926 / 7588 10.1 60 18 22 9/12/ 4.9 1 10.0 0/90 0.0 0.0 9.7 0.2 32000 60 5/4/08 7926 / 7588 10.2 63 19 25 11/13/ 4.6 1 10.0 0/90 3.0 1.0 8.6 0.05 29500 60 5/5/08 7926 / 7588 10.1 60 17 21 9/11/ 5.2 1 10.0 0/90 3.0 1.0 8.3 0.05 29000 60 5/5/08 7926 / 7588 10.2 63 19 21 11/13/ 4.6 1 10.0 0/90 3.0 1.0 8.6 0.05 29500 60 5/6/08 7926 / 7588 10.1 60 17 21 9/11/ 5.2 1 10.0 0/90 3.0 1.0 8.3 0.05 28500 60 5/7/08 7926 / 7588 10.1 60 17 21 9/11/ 5.2 1 10.0 0/90 3.0 1.0 8.3 0.05 28500 60 5/7/08 Surface 8.65 28 1 1 KCL Brine 8.5 30000 El EPOCH 22 • • • M MARATHON OIL COMPANY KBU 42 -7RD 4.4. BIT RECORD BIT SIZE JETS/ AVE WOB PP NO. TYPE S/N TFA IN OUT FT HRS ROP Lo —Avg — Hi RPM Lo — Avg CONDITION — Hi 1 8x8.5 Triple Mill Z6C- n/a 4078 4116 38 9.62 5.00 3.9 — 13.7 — 92 829 — 914 — n/a 7906 30.2 982 2 8 5 HCC 7118417 5x13, 4116 4784 668 8.23 115.4 1.2 — 7.5 — 68 1065 — 1700 0- 0- NO- A- X -1 -NO -BHA HCM605 2x12 31.9 — 1970 2 8 5 HCC 7118417 5.28 85.4 67 5x13, 4784 5102 318 5 3.6 — 16.6 — 1092 — 1458 RR1 HCM605 2x12 39.4 — 1934 0- 0- NO- A- X- 1 -NO -HP 3RR NG Open 5 HCC MX09DX 6005345 O en 5102 5102 0 0 n/a n/a n/a n/a (Old) Clean out run only 2 8.5 HCC HCM605 7118417 5x13, 5102 6488 1386 33.79 66.6 0.5 — 11.0 — 70 902 — 1542 — 0- 0- NO- A- X- 1 -NO -HP RR2 2x12 36.0 2296 2 8.5 HCC HCM605 7118417 5x13, 6488 7926 1438 19.08 75.4 1.1 — 6.8 — 62 952 — 1362 — 0- 0- NO- A- X -1 -NO -LOG RR3 2x12 17.0 2104 3RR NG (Old) 8.5 HCC MX09DX 6005345 Open 7926 7926 0 0 n/a n/a n/a n/a Clean ourun only II EPOCH 23 DEPTH (FT) • CO CO - O ! 01 A O O O O O O O O O O O O O_ O_ O_ O O O 4/5/2008 A 4/6/2008 • 4/7/2008' • r 4/8/2008 • r 4/9/2008 • C) 4/10/2008 • O 4/11/2008 - • Z] m 4/12/2008. • 4/13/2008 • n 4/14/2008. � • 3 4/15/2008 - D 4/16/2008 D I j 1 4/17/2008 O ME 4/18/2008 j Z p 4/19/2008 1 r 4/20/2008 0 0 0 4/21/2008 a D a N Z g1/22/2008 X W m c 4/23/2008 p y N C CO 4/24/2008. N C v v m :::::::: - x 70 . C 4/27 / 2008 4/28/2008 • 4/29/2008 • 4/30/2008 • 5/1/2008 f l 5/2/2008 T 5/3/2008 - • CO 5/4/2008 IV 7" O _ 5/5/2008 10 N . N 5/6/2008 5/7/2008 • 5/8/2008 Mar Oil Kenai E POCH Kenai Gas Field DAILY WELLSITE REPORT • KBU 42 -7RD REPORT FOR Dan Byrd / John Nicholson DATE April 14, 2008 DEPTH 4080 PRESENT OPERATION Pulling out of hole with scraper mill assembly TIME 24:00 YESTERDAY 4080 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4080 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4080 (Projection) 23.52 150.30 3860.33 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED Scraper Mill 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 4080 / 3860 TVD MW 9.0 VIS 105 PV 21 YP 39 FL 5.1 Gels 22/26/ CL- 4800 FC 2 SOL 4.0 SD Tr OIL 0/96 MBL 8.0 pH 12.4 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS 0 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 Pull out of hole from 1900' with muleshoe. Lay down muleshoe. Begin cleaning pits. Begin building 450 bbls of Gelplex fluid (pre- hydrated gel) in Hanson Tank. Rig up Expro Wireline Service to run bridege plug. Run in hole and set bridge plug at 4094' (wlm). Pull wireline tools out of hole and DAILY rig down Expro wirelining equipment. Pick up, make up and run in hole scraper -mill assembly (mill, scraper, junk basket, bit sub). Continue in hole ACTIVITY with 5" drill pipe and tag bridge plug at 4101' (dpm). Slip drill line. Service Topdrive, carrier drivelines, crown and blocks. Finish cleaning pits. Build SUMMARY 450 bbls of new Drilplex drilling mud using the 450 bbls of pre- hydrated gel in the Hanson Tank. Fabricate steam coils for Hanson Tank. Clean trip tank. Set pipe racks. Set new 5" drill pipe in racks. Attempt to displace well with new Drilplex mud. Mill plugged off and unable circulate. Pull 10 stands and able to break circulation. Run back in 10 stands. Break circulation and displace 6% KCL water with new Drilplex mud. Mix and pump dry job. Begin pulling out of hole with mill- scraper assembly. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 ML: 585 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCF[ • KBU 42 -7RD REPORT FOR Dan Byrd / John Nicholson DATE Apr 15, 2008 DEPTH 4116 PRESENT OPERATION Pulling out of hole with milling assembly TIME 24:00 YESTERDAY 4078 24 HOUR FOOTAGE 38 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 3973 24.61 151.10 3762.67 SURVEY DATA 4034 24.03 150.20 3818.26 4096 23.52 150.30 3875.00 4116 (Projection) 22.99 150.39 3893.45 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 1 8 x 8.5" Triple Mill Z6C -7906 n/a 4096 4116 20 9.62 n/a Miling finished DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 11.0 @ 4080 2.4 @ 4086 4.9 5.0 FT /HR SURFACE TORQUE 9901 @ 4077 7416 © 4098 8245.7 7634.8 AMPS WEIGHT ON BIT 30 @ 4116 3 @ 4078 13.1 30.3 KLBS ROTARY RPM 93 @ 4086 71 @ 4080 91.8 89.8 RPM PUMP PRESSURE 982 @ 4105 829 @ 4101 914.2 863.4 PSI DRILLING MUD REPORT DEPTH 4116 / 3893 (TVD) MW 9.1 VIS 100 PV 21 YP 38 FL 5.6 Gels 22/26/28 CL- 4000 FC 2 SOL 4.4 SD Tr OIL 0/96 MBL 8.0 pH 12.0 Ca+ 240 CCI MWD SUMMARY •INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1 @ 4113 0 @ 4077 0.8 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) 305 @ 4113 3 @ 4077 155.5 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 0 / 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone, Sand /Sandstone, Volcanic Ash. PRESENT LITHOLOGY TUFFACEOUS SANDSTONE Continue pulling out of hole (from 2855') with mill- scraper assembly. Lay down mill, scraper, boot basket, bit sub. Strap, drift, pickup, makeup and run in hole whipstock -mill assembly (anchor, whipstock, 8" mill, 8" watermelon mill, 8 1/2" watermelon mill, 1 joint HWDP, bumper jar, crossovers, DAILY MWD) to 477'. Shallow test MWD tool. Pick up, make up and run in hole 5" HWDP to 945'. Continue running whipstock -mill assembly in hole on ACTIVITY 5" drill pipe to 4039'. Fill pipe. Run in hole from 4039' and tag retainer at 4101'. Set whipstock. Record bottom of whipstock at 4096' and top of SUMMARY whipstock at 4077'. Begin milling from 4077'. Mill window in 9 5/8" casing from 4078' to 4096'. Continue milling another 20' of new hole (clear of casing) from 4096' to 4116'. Circulate bottoms up. Work through window to "smooth" entry zone. Perform Leak Off Test to 11.1 ppg EMW (9.1 ppg, 3893tvd, 410psi). Check for flow. Pump dry job. Lay down pup joint and single. Blow down all mud lines. Pull out of hole (to 3374') with milling assembly. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW:585 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 42 -7RD REPORT FOR Dan Byrd / John Nicholson DATE Apr 16, 2008 DEPTH 4678 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4116 24 HOUR FOOTAGE 562 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4034 (Tie -In) 24.03 150.20 3818.26 SURVEY DATA 4277 28.0 163.6 4037.69 4467 25.9 177.5 4206.11 4595 26.1 187.9 4321.32 4721 24.8 196.1 4435.19 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7118417 5x13 2x12 4116 562 6.69 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 197.7 @ 4351 3.2 @ 4117 118.8 120.7 FT /HR SURFACE TORQUE 8225 @ 4493 251 @ Sliding 3922.0 272.9 AMPS WEIGHT ON BIT 31 @ 4394 1 @ 4569 6.9 10.5 KLBS ROTARY RPM 70 @ 4377 0 @ Sliding 68.0 68.0 RPM PUMP PRESSURE 1970 @ 4671 1065 @ 4144 1815.7 1778.6 PSI DRILLING MUD REPORT DEPTH 4646 / 4367 TVD MW 9.2 VIS PV 22 YP 75 FL 12.6 Gels 54/55/56 CL- 3900 FC 1 SOL 5.0 SD Tr OIL 0/95 MBL 9.0 pH 11.5 Ca+ 240 CCI • MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 60 @ 4503 1 @ 4125 13.9 TRIP GAS 2 (4116) CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 11979 @ 4503 318 @ 4125 2762.5 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 8 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash, Conglomeratic Sand /Conglomerate, Carbonaceous Shale /Coal. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE TUFFACEOUS CLAYSTONE LITHOLOGY Continue pulling out of hole (from 3374') with milling assembly. Lay milling assembly (collars, crossovers and mills). Clear and clean rig floor. DAILY Lube rig (crown, blocks, Topdrive, carrier). Make up, make up and run in hole directional drilling assembly (crossover subs, NM flex collars, ACTIVITY MWD with MAP, short NMDC, string stabilizer, motor, bit). Plug into MWD while running in hole and download programming. Continue running in SUMMARY hole with HWDP to 794'. (Replace 3 joints of HWDP on way in). Continue running in hole on 5" drill pipe to 4039'. Fill pipe. Wash in from 4039' to 4116' (exercising caution while running through window). Drill (rotating and sliding) from 4116' to 4678'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • Marathon Oil Company Kenai EPOCH Kenai Gas Field DAILY WELLSITE REPORT HI 110 KBU 42 -7RD REPORT FOR Dan Byrd / John Nicholson DATE Apr 17, 2008 DEPTH 4848 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 4678 24 HOUR FOOTAGE 170 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 4782 25.84 201.93 4490.34 SURVEY DATA 4845 25.86 205.51 4547.04 4909 25.32 213.71 4604.78 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2 8.5 HCC HCM605 7118417 5x13 2x12 4116 4784 668 8.23 1- 1- NO- A- X -1 -NO -BHA MWD failure, build mud 2RR1 8.5 HCC HCM605 7118417 5x13 2x12 4784 64 1.80 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 134.3 @ 4726 6.5 @ 4799 85.2 40.7 FT /HR SURFACE TORQUE 8838 @ 4829 0 @ Sliding 7726.8 Sliding AMPS WEIGHT ON BIT 39 @ 4793 2 @ 4689 12.3 14.3 KLBS ROTARY RPM 69 @ 4824 0 @ Sliding 67.0 Sliding RPM PUMP PRESSURE 1934 @ 4808 1114 @ 4785 1647.5 1436.6 PSI DRILLING MUD REPORT DEPTH 4946 / 4638 TVD MW 9.1 VIS 91 PV 20 YP 47 FL 11.0 Gels 30/33/33 CL- 3000 FC 1 SOL 4.0 SD Tr OIL 0/96 MBL 10.0 pH 12.0 Ca+ 160 CCI MWD SUMMARY • INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 13 @ 4758 0 @ 4799 6.0 TRIP GAS 3 CUTTING GAS @ @ WIPER GAS 4 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2696 @ 4758 53 @ 4799 1190.7 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 4 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Conglomeratic Sand /Conglomerate, Tuffaceous Siltstone, Volcanic Ash. Minor Coal /Carbonaceous Shale. PRESENT TUFFACEOUS SANDSTONE /SAND TUFFACEOUS CLAYSTONE LITHOLOGY Drill (rotating and sliding) from 4678' to 4784'. Note MWD tool malfunctioning while drilling. Lose circulation. Observe loss of 116 bbls. Shut pumps off and stabilize mud loss. Pull out of hole from 4784' to 4705'. Build and pump 30 bbl pill of G -Seal and Safecarb. Lose additional 76 bbls of mud while pumping pill. Stabilize mud loss. Pull out of hole from 4705' to 4000'. Build and pump dry job. Blow down surface equipment. Begin building pre- hydrated Drilplex mud in Hanson tank. Pull out of hole from 4000' to surface. Break and lay down failed MWD collar and begin waiting for arrival of new collar. Handle and stand back remaining directional tools. Continue building mud volume. Troubleshoot PLC power problem. Hold DAILY weekly safety meeting with all hands. Service rig and Topdrive. Continue building mud volume, while allowing sufficient time for proper hydration of ACTIVITY the new Drilplex mud. Run in hole with lower bottom hole assembly (bit, motor, pony DC, stabilizer) after arrival of new MWD collar. Pick up, make SUMMARY up and orient MWD collar. Run in hole with MWD and remaining bottom hole assembly (flex collars, crossovers, HWDP) to 794'. Test MWD. Continue building mud volume and hydrating new Drilplex mud. Continue running in hole with 5" drill pipe to 4774'. Break circulation. Wash down from 4774' to 4784' with no fill. Drill ahead (sliding) from 4784' to 4799'. Lose circulation. Observe loss of 250 bbls. Shut pumps off and stabilize mud loss. Pull out of hole from 4799'10 4585'. (After initial mud loss at 4784', record net total mud loss of 477 bbls during 168 minutes of circulating within 4784' -4799' interval). Mix and spot (G -Seal and Safecarb) LCM pill in drill pipe. Run back in hole to 4799'. Break circulation and slowly increase pump rate. No loss of mud at full pump rate. Drill ahead (rotating and sliding) from 4799' to 4848'. • EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 42 -7RD REPORT FOR Dan Byrd 1 John Nicholson DATE Apr 18, 2008 DEPTH 5102 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 4848 24 HOUR FOOTAGE 254 CASING INFORMATION 9 518" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4972 23.84 221.18 4662.08 5035 22.84 224.82 4719.93 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR1 8.5 HCC HCM605 7118417 5x13 2x12 4784 5102 318 5.28 1- 1- WT- A- X- 1 -NO -HP Lost circulation problems DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 158.5 @ 4951 17.1 @ 4857 90.9 30.8 FT /HR SURFACE TORQUE 10457 @ 5009 0 @ Sliding 5581.9 9000.1 AMPS WEIGHT ON BIT 32 @ 5045 3 @ 4873 17.0 4.5 KLBS ROTARY RPM 69 @ 4894 0 @ Sliding 67.4 66.5 RPM PUMP PRESSURE 1746 @ 4874 1092 @ 5091 1426.0 1216.7 PSI DRILLING MUD REPORT DEPTH 5102/4782 TVD MW 9.1 VIS 90 PV 20 YP 40 FL 5.4 Gels 24/27/27 CL- 2800 FC 1 SOL 5.0 SD 0.25 OIL Tr MBL 10.0 pH 11.5 Ca+ 300 CCI MWD SUMMARY INTERVAL TO 0 TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 14 @ 4923 1 @ 5099 7.7 TRIP GAS CUTTING GAS @ @ WIPER GAS 11 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 2865 @ 4923 212 @ 5099 1544.8 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Carbonaceous Shale. PRESENT LITHOLOGY TUFFACEOUS CLAYSTONE TUFFACEOUS SILTSTONE Drill (rotating and sliding) from 4848' to 5009'. Lose circulation. Observe loss of 99 bbls. Shut pumps off and stop mud loss. Pull out of hole from 5009' to 4957'. Build, pump and spot 56 bbl Safecarb pill. No returns while spotting. Begin building volume. Pull out of hole from 4957' to 4500'. Build, pump and load 50 bbl LCM (G -Seal and Safecarb) pill in pipe without losses. Run back in hole from 4500' to 5009'. Break circulation and bring pumps up slowly. Drill ahead from 5009' to connection at 5087', losing "only" 17 bbls of mud. Ream, make connection and turn pumps back on. Observe accelerated mud loss (34 bbls in 8 minutes). Shut pumps off and losses stop. Pull out of hole from 5087' to 5020'. Monitor well. No initial losses. Briefly turn pumps back on and lose 14 bbls in 3 minutes. Pull out of hole from 5020' to 4700'. Briefly pump very slowly and lose 11 bbls in 8 minutes. Build, pump and load 50 bbl LCM (G -Seal and Safecarb) pill in pipe. Pump very slowly for 30 minutes. No initial losses, then lose 25 bbls in last 10 minutes. Run back in hole from 4700' to 5087'. Break circulation and drill (rotating) from 5087' to 5102'. Losses began as soon as DAILY the drilling began. Lose 124 bbls in 20 minutes of drilling. Slow pump rate way down and lose another 34 bbls in 12 minutes. Shut pumps off and ACTIVITY losses immediately stop. Pull out of hole from 5102' to 4015'. Service rig and Topdrive. Begin building mud volume back up. Fix, re- install and SUMMARY check crown- o- matic. Build, pump and load 52 bbl LCM (G -Seal and Safecarb) pill in pipe. Briefly circulate at high rate and orient MWD tool at shoe. Lose 11 bbls of mud in 4 minutes. Run back in hole from 4015' to 5027'. Build, pump and load 49 bbl LCM (G -Seal and Safecarb) pill in pipe. Break circulation and pump at 60spm while slowly washing down from 5027' to 5044'. No initial losses to 5044'. Increase to 170spm while washing down from 5044' to 5071'. Losses began immediately after increased rate. Lose 64 bbls of mud in 12 minutes. Shut pumps off and losses immediately stop. Pump at 40spm and lose another 31 bbls in 10 minutes, Pull out of hole from 5071' to 4140'. Orient MWD tool and circulate while pulling up through window to 4013'. Lose 30 bbls of mud in initial 5 minutes of pumping at 170spm. Slow pump rate down to 54spm and lose another 19 bbls of mud in 14 minutes while pumping dry job. (Note 513 bbls of mud lost in last 24 hours, and 990 bbls lost in last48 hours). Pull out of hole from 4013' to top of HWDP at 794'. Pull out of hole standing back HWDP and jars. Break and lay down directional tools (crossover subs, NM flex collars, MWD with MAP, short NMDC, string stabilizer, motor, bit). Grade bit. Clear and clean rig floor. Pull wear bushing. Run in test plug. Rig up testing equipment. Begin testing all BOPE to 250psi Low /3500psi High for 5 minutes. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • Marathon Gil Company Kenai EPOiFI Kenai Gas Field DAILY WELLSITE REPORT HI • KBU 42 -7RD REPORT FOR Dan Byrd / John Nicholson DATE Apr 19, 2008 DEPTH 5102 PRESENT OPERATION Pulling out of hole after pumping LCM pills TIME 24:00 YESTERDAY 5102 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 5102 (Projection) 21.52 224.82 4781.97 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3RR (Old) 8.5 HCC MX09DX 6005345 Open 5102 5102 0 n/a NG Finish LCM tests DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE 0 0 AMPS WEIGHT ON BIT 0 0 KLBS ROTARY RPM 0 0 RPM PUMP PRESSURE 0 0 PSI DRILLING MUD REPORT DEPTH 5102 / 4782 TVD MW 9.2 VIS 87 PV 20 YP 30 FL 5.5 Gels 10/13/14 CL- 2600 FC 1 SOL 5.0 SD Tr OIL 0/95 MBL 10.0 pH 11.0 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS 0 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 19 0 partial TG from 5102 1 0 last pumping 6 all pumping ops TRIP GAS 19 CUTTING GAS 0 0 WIPER GAS 13, 6 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ 0 CONNECTION GAS HIGH ETHANE (C -2) 0 0 AVG PROPANE (C -3) 0 0 CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG N/A PENTANE (C -5) 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue testing all BOPE. Test annular preventer to 250psi Low / 3500psi High for 10 minutes. Test all other BOPE (pipe rams, inside and outside kill valves, floor and dart valves, upper and lower Topdrive valves, check valve, choke manifold valves 1 -12, HCR, manual choke and blind rams) to 250psi Low 1 5000psi High for 5 minutes.. Perform accumulator drawdown test. Pull test joint. Rig down surface test equipment. Install wear bushing. Blow down lines. Pick up, make up and run in hole a short LCM- spotting assembly (unjetted used insert bit, bit sub, HWDP, jars) to 662'. Continue running in hole with 5" drill pipe from 662' to 4000'. Clear and clean rig floor. Service Topdrive, crown and blocks. Wait for LCM products DAILY to arrive on location. Cut and slip drilling line. Change oil in #1 generator. Remove beaver strainers. Wire in new motor for #1 charge pump. Scrub ACTIVITY cellar. Prep 3 1/2" completion tubing. Transfer 25 bbls of pre- hydrated Gelplex to pill pit and add mud to 50 bbls. Mix LCM pill with Magna- Fiber, SUMMARY Safecarb, G -Seal and additional mud to 62 bbls. Run in hole from 4000' to 5102'. Pump and spot 50 bbls of pill. No mud losses while pumping up 226spm. Record 9 units maximum gas. Pull out of hole from 5102' to 4070'. Mix LCM pill with Magna - Fiber, Cello- flakes, Safecarb and G -Seal to 54 bbls. Pump and squeeze away 34 bbls of pill at 423psi maximum. Record 19 units of delayed trip gas. Mix second LCM pill with Magna- Fiber, Cello- flakes, Safecarb and G -Seal to 35 bbls. Pump and squeeze away all 35 bbls of pill at 355psi maximum. Record 13 units maximum gas. Circulate casing clean of pill material. Run back in hole from 4070' to 5102'. Circulate hole clean of all residual pill material. (Lose 26 bbls of mud while pumping at 220spm cleaning hole). Record 6 units maximum gas. Pump dry job. Pull out of hole from 5102' (to 2995'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva 0 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 42 -7RD REPORT FOR Dan Byrd / Rowland Lawson DATE Apr 20, 2008 DEPTH 5456 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5102 24 HOUR FOOTAGE 354 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5097 22.27 224.81 4777.19 SURVEY DATA 5158 19.71 226.61 4834.14 5285 15.75 227.98 4955.16 5350 14.57 225.78 5017.90 5413 12.59 223.65 5079.13 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR2 8.5 HCC HCM605 7118417 5x13 2x12 5102 354 9.43 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 165.5 @ 5300 3.7 @ 5406.0 69.1 68.2 FT /HR SURFACE TORQUE 11533 @ 5404 0 @ Sliding 6070.6 10358.5 AMPS WEIGHT ON BIT 31 @ 5408 1 @ 5360.0 11.2 8.3 KLBS ROTARY RPM 69 @ 5214 0 @ Sliding 41.9 63.8 RPM PUMP PRESSURE 1840 @ 5118 902 @ 5103.0 1383.6 1391.0 PSI DRILLING MUD REPORT DEPTH 5422 / 5088 TVD MW 9.3 VIS 100 PV 19 YP 36 FL 8.4 Gels 24/28/29 CL- 2600 FC 1 SOL 6.0 SD Tr OIL Tr /94 MBL 11.0 pH 11.3 Ca+ 240 CCI fi lAWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 43 @ 5209 1 @ 5112 16.7 TRIP GAS 10 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C -1) 8727 @ 5209 213 @ 5112 3339.6 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 4 / 10 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomeratic, Tuffaceous Claystone, Tuffaceous Siltstone. Minor Volcanic Ash. Trace Coal. PRESENT SAND LITHOLOGY Continue to pull out of hole from 2995' to 2620'. Repair brake linkage. Inspect saver sub, crown and blocks. Continue to pull out of hole from DAILY 2620' to top of bottom hole assembly at 662'. Pull and stand back HWDP and jars. Break and lay down bit sub and bit. Pick up, make up and run ACTIVITY in hole directional drilling assembly (bit, motor, string stabilizer, pony DC, MWD with MAP, crossovers, flex collars, HWDP, jars) to 794'. Orient, SUMMARY scribe, and surface test MWD collar on way in. Continue running in hole with 5" drill pipe from 794' to 4015'. Fill pipe and orient motor. Continue running in hole from 4015' to 4961'. Wash down from 4961' to 5102' with no fill. Record 10 units of trip gas. Drill (sliding) from 5102' to 5103'. Pull off bottom. Change out swab in #1 mud pump. Drill ahead (sliding and rotating) from 5103' to 5456'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 ML: 585 REPORT BY Craig Silva • Marathon Gil Company Kenai EPIJCIEI Kenai Gas Field DAILY WELLSITE REPORT III KBU 42 -7RD REPORT FOR Dan Byrd / Rowland Lawson DATE Apr 21, 2008 DEPTH 5903 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 5456 24 HOUR FOOTAGE 447 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5476 10.75 224.53 5140.83 5602 6.97 227.27 5265.27 SURVEY DATA 5728 2.65 229.94 5390.81 5854 1.18 285.54 5516.75 5980 1.45 275.72 5642.72 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR2 8.5 HCC HCM605 7118417 5x13 2x12 5102 801 23.50 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 173.3 @ 5759 4.4 @ 5472 62.8 72.4 FT /HR SURFACE TORQUE 12350 @ 5848 0 @ Sidetrack 7077.4 11189.0 AMPS WEIGHT ON BIT 41 @ 5487 3 @ 5813 12.0 7.5 KLBS ROTARY RPM 76 @ 5842 0 @ Sidetrack 46.8 72.8 RPM PUMP PRESSURE 1846 @ 5780 1000 @ 5816 1486.3 1592.9 PSI DRILLING MUD REPORT DEPTH 5845 / 5508 TVD MW 9.5 VIS 100 PV 19 YP 56 FL 9.4 Gels 44/49/52 CL- 2500 FC 1 SOL 6.5 SD Tr OIL 2/92 MBL 12.0 pH 11.1 Ca+ 240 CCI fli) MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 74 @ 5759 2 @ 5532 15.3 TRIP GAS CUTTING GAS @ @ WIPER GAS 12 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 14776 @ 5759 563 @ 5532 3059.5 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 9 / 13 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY Drill (sliding and rotating) from 5456' to 5781'. Circulate bottoms up. Check for flow. Get slow pump rate. Pull out of hole from 5781' to 5025' SUMMARY on wiper trip. Run back in hole from 5025 to 5655. Wash down from 5655' to 5781' with no fill. Record 12 units of wiper gas. Drill (sliding once and then rotating) from 5781' to 5903'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva 4110 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPJCIEI a KBU 42 -7RD REPORT FOR Dan Byrd / Rowland Lawson DATE Apr 22, 2008 DEPTH 6488 PRESENT OPERATION Pulling out of hole, working through tight spots TIME 24:00 YESTERDAY 5903 24 HOUR FOOTAGE 585 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6042 1.54 273.06 5704.70 SURVEY DATA 6105 1.62 260.35 5767.68 6232 1.67 263.13 5894.63 6358 1.72 263.37 6020.57 6421 1.65 250.39 6083.55 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR2 8.5 HCC HCM605 7118417 5x13 2x12 5102 6488 1386 33.79 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 240.0 @ 6466 11.0 @ 6348.00000 68.2 120.7 FT /HR SURFACE TORQUE 14813 @ 6464 0 @ Sliding 11845.5 13560.8 AMPS WEIGHT ON BIT 31 @ 6429 0.5 @ 6286.00000 10.2 8.0 KLBS ROTARY RPM 84 @ 6224 0 @ Sliding 71.3 32.6 RPM PUMP PRESSURE 2296 @ 6475 1338 @ 6117.00000 1684.1 1851.85876 PSI DRILLING MUD REPORT DEPTH 6488 / 6151 TVD MW 9.5 VIS 100 PV 17 YP 38 FL 9.2 Gels 33/37/39 CL- 2200 FC 2 SOL 8.5 SD Tr OIL 4/88 MBL 12.5 pH 10.5 Ca+ 80 CCI II MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 274 @ 6388 2 @ 6357 28.3 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 53714 @ 6388 464 @ 6357 5620.5 CONNECTION GAS HIGH ETHANE (C -2) 17 @ 6389 0 @ 1.0 AVG PROPANE (C -3) 6 @ 6389 0 @ 0.1 CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG 2 / 7 PENTANE (C -5) @ @ HYDROCARBON 1 Interval with gas over 100 units. Fair to good show. SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION 6382 -6391 Coarse to conglomeratic sand, almost all 274u Max; 55u SD /Conglomeratic SD /CGL = med- vc- granule, med gy -med dk disaggregated; Speculate good Por and Perm before /after, 222u gry, mod -p srtd, disaggtd, ang -sbang but Irg clsts rdd, comp because gas readings are low before this zone. background through gywk, diverse large clsts dom by phyllte and greenst, prob good zone. Por and Perm due to rarity of hi gas. LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Claystone, Tuffaceous Siltstone, Calcareous Tuff. Intermediate Volcanic Ash. Minor Coal /Carbonaceous Shale, Tuffaceous Sandstone, Tuffaceous Shale. PRESENT SAND LITHOLOGY Drill (rotating) from 5903' to 6269'. Rotation stalling out at 14500fps torque. Continue circulating. Briefly clean and condition mud while adding Floplex, EMI -795 and PA-10(3.5%) to improve annular lubrication. Begin drilling ahead from 6269'. Torque remains. Reduce RPMs and raise DAILY pump rate to experiment with reduction in wall sticking. Drill (rotating) from 6269' to 6348'. Continued high torque despite making variations in drill ACTIVITY parameters. Cease drilling at 6348' due to high torque and circulate and condition. Change out liners and swabs in #2 mud pump. Drill (rotating) SUMMARY from 6348' to 6488'. Significant difficulty drilling last 27' after 6461' due to very high torque. (Also note spotty to abundant metal shavings and shards representing 2 or 3 metallurgies observed in all samples after 6240'). Circulate bottoms up and continue to circulate and clean well. Check for flow. Begin pulling out of hole from 6488'. Observer significant overpull after 6285', and begin working through tight spots. Work (for 2 1/2 hours total) through difficult tight zone from 6223' to 6200'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 • • BAPS 6 P- 1 0 A .U1Odal Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 23, 2008 DEPTH 6537 PRESENT OPERATION Pulling out of hole TIME 24:00 YESTERDAY 6488 24 HOUR FOOTAGE 49 CASING INFORMATION 9 5/8" @ 4078' 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 2RR2 8.5 HCC HCM605 7118417 5x13 2x12 5102 6488 1386 33.79 1- 1- WT- A- X- 1 -NO -HP Torque, sticking problems DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 193.4 @ 6536 31.0 @ 6508 90.6 38.5 FT /HR SURFACE TORQUE 14525 @ 6497 12096 @ 6511 13580.0 13237.1 AMPS WEIGHT ON BIT 16 @ 6531 1 @ 6511 4.3 3.4 KLBS ROTARY RPM 83 @ 6517 41 @ 6522 70.4 53.4 RPM PUMP PRESSURE 2104 @ 6531 1731 @ 6508 1916.2 1861.6 PSI DRILLING MUD REPORT DEPTH 6537 / 6200 TVD MW 9.5 VIS 100 PV 18 YP 44 FL 9.2 Gels 35/38/39 CL- 2100 FC 2 SOL 8.0 SD Tr OIL 4/88 MBL 12.0 pH 10.7 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS I GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 40 @ 6507.00000 4 @ 6491.00000 17.8 TRIP GAS 9 CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 7826 @ 6507.00000. 839 @ 6491.00000 3473.4 CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A 1 PENTANE (C -5) @ @ HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Conglomeratic Sand /Conglomerate, Tuffaceous Claystone, Tuffaceous Siltstone, Volcanic Ash. Minor Calcareous Tuff, Coal /Carbonaceous Shale. PRESENT SAND /SANDSTONE CONGLOMERATIC SAND /CONGLOMERATE LITHOLOGY Continue pulling out of hole from 6223' with difficulty. Wash, backream and working through tight spots in several places to 5529'. Pull to 50K over through tight spots and have rotary stall out at 14 -15K ft-Ibs torque. Pull out of hole slick from 5529' to top of bottom hole assembly at 794'. (Correlate tool face to 40 degrees right before pulling through window). Pull bottom hole assembly out of hole, closely inspecting each tool for damage as it is being pulled. Break and lay lower directional tools. Pick up and make up lower group of directional tools. Change out mud motor. DAILY Orient motor and MWD. Service rig (crown, blocks, Topdrive. oil change in #1 Carrier, new stop plate on brake linkage, carrier drive lines). Run in ACTIVITY hole with bottom hole assembly to 256' and shallow test MWD tool. Continue running in hole with 5" HWDP and drill pipe to 6418'. Break SUMMARY circulation and wash down from 6418' to 6488'. Circulate bottoms up. Record 9 units of trip gas. Observe very thick mud and excessive torque at bottoms up. Begin treating mud for FL control, solids, and pH. Mix Fioplex, EMI 795, Gelplex, Drilplex and soda ash to reduce API fluid loss (from 10.4 to 9.2) and thin filter cake (from 2 to < 2). Drill ahead (rotating) from 6488' to 6537' while treating mud, but experience constant wall sticking, very high torque and stalling problems. Cease drilling at first connection. Circulate, work pipe and continue treating mud. Have difficulty working pipe in both directions. Add 550 gallons of PA -10 lubricant (increasing total oil from 3% to > 4 %). Begin pulling out of hole to window. Pull out of hole from 6537' (to 5277'). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3725 RW: 585 REPORT BY Craig Silva 0 Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCFI KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 24, 2008 DEPTH 6537 PRESENT OPERATION Mixing Flo -Pro mud, servicing rig TIME 24:00 YESTERDAY 6537 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' 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 2RR3 8.5 HCC HCM605 7118417 5x13 2x12 6488 49 0.65 In Hole 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 6537 / 6200 TVD MW 9.1 VIS 45 PV 10 YP 17 FL 6.8 Gels 8/11/12 CL- 35000 FC 1 SOL 4.0 SD 0 OIL 2/94 MBL 0.0 pH 9.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS 0 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ circ at 4100 2 @ last circ N/A TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ 0 CONNECTION GAS HIGH ETHANE (C -2) 0 0 AVG PROPANE (C -3) 0 0 CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG N/A PENTANE (C -5) 0 0 HYDROCARBON SHOWS . INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY I PRESENT LITHOLOGY Continue pulling out of hole (from 5277') to just outside of window at 4100'. Correlate tool face. Displace 100 bbls of treated mud to well. Record 4 units maximum circulation gas. Pull up through window to 4011'. Monitor well with trip tank. Treat mud in pits with 10 sacks of Desco to prepare for later injection. Pump down 250 bbls of mud in pits to fill Hansen Tank. Continue to thin and reduce gel strengths of mud in pits before hauling off DAILY with Vac trucks. Clean all pits. Flush, pump through and clean the 3 rig pumps, and all lines, suctions, discharges and manifolds (including 2" ACTIVITY cement line, bleeders, kill line, choke line, poorboy degasser, Topdrive). Clean out trip tank and suck down cellar. Add 425 bbls of water to refill SUMMARY pits. Build new Flo -Pro mud system. Weight up to 9.35ppg with barite, and add 2% Lubetex to mud before displacing. Perform various rig maintenance while building new mud system. Change out temperature control above upper cooling tower fan for pump #2, prepare man - riders for certification, install shaker screens for Flo -Pro mud. Clean beaver screens and perform inspections on mud pumps. Put valves in #2 mud pump cylinder 1 suction and #3 mud pump cylinder 1 discharge. Service Topdrive and mud saver valve. Repair defective cable to LEL monitor in cellar and then recalibrate. Mixing 56 bbl batch of Flo -Pro mud in pit #4 to bring total mud volume to 575 bbls (including 45 bbls of mud spacer in pit #5). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCIFI 1111 KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 25, 2008 DEPTH 6852 PRESENT OPERATION Drilling TIME 24:00 YESTERDAY 6537 24 HOUR FOOTAGE 315 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6483 1.54 235.68 6145.52 6546 1.52 236.62 6208.50 SURVEY DATA 6672 1.54 239.26 6334.46 6798 1.38 234.47 6460.42 6862 1.26 234.77 6524.40 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR3 8.5 HCC HCM605 7118417 5x13 2x12 6488 364 5.48 In Hole DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 135.2 0 6584 17.1 0 6576 72.7 75.1 FT /HR SURFACE TORQUE 11569 0 6773 8240 0 6572 9941.5 10689.3 AMPS WEIGHT ON BIT 8 0 6778 1 0 6504 5.5 5.9 KLBS ROTARY RPM 71 0 6649 54 0 6601 61.2 59.9 RPM PUMP PRESSURE 1366 @ 6737 952 @ 6538 1192.5 1281.9 PSI DRILLING MUD REPORT DEPTH 6853 / 6516 TVD MW 9.3 VIS 50 PV 14 YP 16 FL 5.2 Gels 8/10/11 CL- 37000 FC <1 SOL 5.0 SD Tr OIL 2/93 MBL 2.0 pH 9.0 Ca+ 40 CCI 110 MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 109 0 6713 1 0 6539 53.3 TRIP GAS CUTTING GAS 0 0 WIPER GAS 7 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 21803 0 6713 314 0 6539 10643.2 CONNECTION GAS HIGH ETHANE (C -2) 11 0 6713 0 0 6601 1.9 AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG 20 / 58 PENTANE (C -5) 0 0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Conglomeratic Sand /Conglomerate, Volcanic Ash. Minor Coal /Carbonaceous Shale, Calcareous Tuff. PRESENT SAND /SANDSTONE TUFFACEOUS CLAYSTONE LITHOLOGY Finish mixing Flo -Pro mud. Run in hole from 4014' to 6475'. Break circulation and begin pumping down 50 bbl spacer. Wash down last stand from 6475' to 6507' while starting displacement (at 88gpm, 30rpm, for 2312 strokes). Hole torqueing up and stalling rotary at 6507'. Begin displacing DAILY annulus (at 164spm, 380gpm, 80rpm). Hole continues torquing up and attempting to pack off. Begin losing partial returns with accelerated pump ACTIVITY rate. Reduce flow to 267 gpm. Still losing partial returns. Estimate 150 bbls lost to formation. Shut down pumps. Pull out of hole from 6507' to SUMMARY 4014' to build volume. Monitor well with trip tank. Finish building volume. Circulate at 4014' and swap mud over to Flo -Pro back to surface. Run in hole slowly from 4014'. (Orient tool face for passing through window). Run in hole to 6287'. Circulate and condition Flo -Pro mud. (First batch of Flo -Pro has LCM pill of Safe -Carb, G -Seal and Mix II). Wash and ream without high torque incident from 6287' to 6537'. Drill from 6537' to 6852'. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva IP Marathon Oil Company IMO Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 26, 2008 DEPTH 7926 PRESENT OPERATION Circulating around after building mud weight TIME 24:00 YESTERDAY 6852 24 HOUR FOOTAGE 1074 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 6925 1.14 234.97 6587.39 7177 0.89 249.92 6839.35 SURVEY DATA 7429 0.94 250.60 7091.31 7680 0.93 237.77 7342.27 7869 0.89 252.26 7531.25 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR3 8.5 HCC HCM605 7118417 5x13 2x12 6488 7926 1438 19.08 In Hole Logging point DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 188.3 @ 7150 13.7 @ 7918 90.3 119.1 FT /HR SURFACE TORQUE 13757 @ 7119 8296 @ 7627 10804.8 10942.7 AMPS WEIGHT ON BIT 17 @ 7232 1 @ 7613 7.4 5.5 KLBS ROTARY RPM 70 @ 7371 53 @ 7873 62.4 60.3 RPM PUMP PRESSURE 1695 @ 7146 1136 @ 6856 1389.1 1436.6 PSI DRILLING MUD REPORT DEPTH 7926 / 7588 TVD MW 10.2+ VIS 57 PV 16 YP 25 FL 5.3 Gels 11/13/14 CL- 33000 FC 1 SOL 10.0 SD 0.5 OIL 3/87 MBL 5.0 pH 8.8 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 491 © 7899 16 @ 7735 105.7 TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 93793 @ 7899 3313 @ 7735 20928.4 CONNECTION GAS HIGH 1500 ETHANE (C -2) 83 @ 7899 0 @ 8.3 AVG 419 PROPANE (C -3) 23 @ 7887 0 © 1.2 CURRENT 1500 BUTANE (C -4) 3 @ 7924 0 @ 0.0 CURRENT BACKGROUND /AVG 13 / 30 PENTANE (C -5) @ @ HYDROCARBON Note at least 493' in 26 sand intervals with gas over 100 units. The last (Tyonek) zone visually appeared to have the best show SHOWS qualities. INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION Many intervals, Most cuttings are disaggregated so visual Por /Perm 1500 CG at 7926. Max 7872 -7926 show zone. SD /SS med gry, fn Lo- apparent best at 7872- estimates lack validity. When discernible from consol ss 491u, Avg thru intrvl 415u, med Lo, ang- sbang, mod w srtd, dom volt ash 7926 shows appear poor to fair, but last interval has good vis bkgrnd before /after 40u mtrx, some with calc cmttn and good vis Por, Por lithic aren. LITHOLOGY Major Sand /Sandstone, Tuffaceous Claystone, Tuffaceous Siltstone, Tuffaceous Sandstone. Intermediate Volcanic Ash, Conglomeratic Sand, Coal /Carbonaceous Shale. Minor Calcareous Tuff, Conglomerate. PRESENT SAND /SANDSTONE LITHOLOGY Drill ahead from 6852' to logging point at 7726'. Observe 55 units of connection gas, for the first time on well, from connection at 7734'. Observe 126 units of connection gas from connection at 7797' and record 345 units of formation gas from 7808'. Begin increasing the 9.5+ mud weight at connection at 7860'. Observe 126 units (repeat amount) of connection gas from connection at 7860'. Mud weight raised to 9.7+ when drilling from 7860' to 7723'. Record maximum formation gas on well of 491' units from 7899' within major sand interval. Raise mud weight to 9.9+ while working DAILY pipe and circulating out high gas before connection at 7723'. Pick up single and drill from 7723' to 7726' (7588' TVD). Observe 288 units of ACTIVITY connection gas from connection at 7723' and record 338 units of formation gas from 7924'. Lay down single after surveying and briefly circulating 0 SUMMARY at 7926'. Circulate bottoms up while working pipe and observe gas levels drop down 55 units before starting to rapidly increase. Observe 1500 units of connection gas from laying down pipe at 7726'. Circulate out high gas and begin raising mud weight to 10.2 +. Perform simulated connection for 10 minutes. Started pumps up and observe leaking wash pipe (packing was bad). Stand back 1 stand and change wash pipe. Run stand back in and begin circulating bottoms up. Achieve 10.2+ mud weight in and out just before recording 42 units of "bottoms up gas" from connection simulation. Continue circulating and observe background of 13 units. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva S S Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 27, 2008 DEPTH 7926 PRESENT OPERATION Laying bottom hole assembly before logging TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 7926 (Projection) 0.89 252.26 7588.24 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 2RR3 8.5 HCC HCM605 7118417 5x13 2x12 6488 7926 1438 19.08 0- 0- NO- A- X -1 -NO -LOG E -Iog runs DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ 0 RPM PUMP PRESSURE 0 0 PSI DRILLING MUD REPORT DEPTH 7926 / 7588 TVD MW 10.2 VIS 53 PV 17 YP 26 FL 4.8 Gels 10/13/15 CL- 33000 FC 1 SOL 10.0 SD 0.25 OIL 4/86 MBL 5.0 pH 9.0 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1024 0 Wiper gas at 7926 2 0 last circ before POOH N/A TRIP GAS CUTTING GAS 0 0 WIPER GAS 1024, 81 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 0 0 CONNECTION GAS HIGH ETHANE (C -2) 0 0 AVG PROPANE (C -3) 0 0 CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG N/A PENTANE (C -5) 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish circulating and conditioning. Check for flow. Pull out of hole from 7923' to 4016' on wiper trip. Pull generally sticky and tight from 7923' to 6033'. Pull very tight and require backreaming from 7595' to 7535', 7222' to 7080' and 7074' to 6291'. Record 8 to 32 units of gas while backreaming. Pull out of hole free from 6033' to 4016'. Service rig. Run back in hole from 4016' to 7860'. Pick up 5' pup joint to 7865'. Wash and DAILY ream from 7860' to 7926'. Circulate bottoms up. Record 1024 units of wiper gas. Circulate out high gas. Circulate around two times. Circulate gas ACTIVITY down to 3 units. Pull out of hole from 7926' to 6161' on wiper trip. (Pull 40 -50K over to 7404' and 20 -30K over to 6161'). Run back in hole to 7926', SUMMARY running in slowly near bottom. Circulate bottoms up. Record 81 units of wiper gas. Continue to circulate and condition mud adding 12 drums of Lubetex to reduce torque from 10800 ft -lbs to 9200 ft -lbs. Circulate gas down to 3 units. Fill trip tank. Check for flow. Pump dry job. Drop drift. Drop rabbit on wire. Pull out of hole (SLM) from 7926' to top of HWDP at 795'. Pull and stand back HWDP and jars. Pull, break and lay down directional tools. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 REPORT BY Craig Silva • Marathon Oil Company EPOCH Kenai Gas Field DAILY WELLSITE REPORT HI ill KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 28, 2008 DEPTH 7926 PRESENT OPERATION E- logging TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 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 7926 / 7588 TVD MW 10.4 VIS 58 PV 18 YP 27 FL 5.0 Gels 11/13/14 CL- 30500 FC 1 SOL 11.0 SD 0.1 OIL 5/84 MBL 5.0 pH 8.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 41)D ITCH GAS 51 @ TG at 7926 2 @ before pumps off 16 while circulating TRIP GAS 51 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 N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue to pull, break and lay down directional tools (crossovers, NMCSDPs, MWD with MAP, short NMDC, string stabilizer, bit). Prepare logging tools on catwalk. Hold pre -job meeting on procedures and safety for handling Weatherford Logging Services' shuttle logging system. Pick up and make up shuttle outer assembly (muleshoe, circulating sub, 4 joints 3 1/2" drill pipe, lower latch, upper latch, 1 joint 3 1/2" drill pipe, float valve, crossover sub). Pick up and make up inner string of WLS Quad -Combo logging tools (with inner latching spear). Install, seat and latch up logging assembly in 3 1/2" drill pipe. Load neutron sources. Run shuttle logging assembly in hole on first joint of HWDP and perform staged pressure check (at 42spm to 177psi, 84spm to 440psi, 127spm to 883psi). Drift all tools with 2 1/2" Weatherford drift on way in. Continue running shuttle logging assembly in hole on 19 more joints of 5" HWDP to 781'. Continue running shuttle in hole on 5" drill pipe. (Pull corrosion ring from first stand of drill pipe). Run shuttle in hole on 5" drill pipe to just outside window at 4063'. Perform staged pressure check (at 42spm to 279psi, 84spm to 572psi, DAILY 127spm to 1026psi). Continue in hole to 6398'. Perform staged pressure check (at 42spm to 341 psi, 84spm to 648psi, 127spm to 1100psi). ACTIVITY Continue in hole to 7722'. Perform staged pressure check (at 42spm to 357psi, 84spm to 650psi, 127spm to 1160psi). Continue running in hole and SUMMARY tag bottom (with no fill) at 7926'. Pull back up to 7909'. Make up Topdrive and break circulation. Circulate bottoms up. Record 51 units of trip gas. Continue to circulate, clean and condition mud (for 2 complete circulations before logging pass). Note pipe sticking, high hookload and very high torque when pulling up and working pipe after initially breaking circulation. Begin adding 4 drums of Lubetex to mud to ease sticking problem during first circulation. Finish circulating and pull (1 stand and a single) to 7797'. Drop and pump down Messenger dart to engage assembly. Pressure up until the seating plug is sheared and inner string released. Push out and deploy shuttle logging assembly to 7911'. Check for flow. Pump dry job. Pull out of hole at controlled rate of 30' per minute logging up with Quad -Combo from 7911' to 2864'. Pull out of hole at normal rate from 2864' to surface. Stand back 5" HWDP while pulling out. Break and lay down 3 1/2" drill pipe. Remove neutron sources. Break, lay down and load off Weatherford Logging Service Quad -Combo tools. Break and load off running equipment (upper and lower latches, float valve, circulating sub, crossover sub, muleshoe). Clear rig floor. Service rig. Lubricate carrier, Topdrive, block and crown and pipe spinner. Change oil in carrier motor, Grease drive lines. 40 EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPcXIILE[ III KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 29, 2008 DEPTH 7926 PRESENT OPERATION Building volume in pits after earlier mud losses TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 7926 / 7588 TVD MW 10.4 VIS 58 PV 18 YP 27 FL 5.0 Gels 11/13/14 CL- 30500 FC 1 SOL 11.0 SD 0.1 OIL 5/84 MBL 5.0 pH 8.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE ITCH GAS 3 @ during limited returns 0 @ limited returns N/A 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 N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue servicing rig while waiting on Weatherford Wireline Services to process Quad -Combo data. Slip and cut 477' of drill line. Repair set and check crown -o- matic. Change out drawworks control joy stick. Pick up, make up muleshoe to first stand of HWDP and run in hole "open- ended" on 5" HWDP to 605' and 5" drill pipe to 4077'. Continue to wait on processing of logging run data. Continue rig maintenance. Repair Topdrive rpm sensor. Put hammer union ends on new pop -off line hose for #3 pump. WWS unable to complete data processing. Run in hole from 4077' to 7880', DAILY taking overpull weights at 500' intervals. (Rabbit in derrick). Fill pipe and back side with 55 bbls. Pump 50 bbl LCM pill to back side. Pull out of hole ACTIVITY from 7880', filling the backside at 2.0 bpm, and from 6660' to 4060' (just above window at 4078'), filling backside at 4.4bpm. Close annular to SUMMARY minimize losses. Estimated total losses at 709 bbls at this point. Mix LCM pill. Open annular, pump 50 bbl LCM pill and chase with 70 bbls to end of drill pipe. While chasing down pill, pump pressure increased from 35psi to 185psi at 1570 strokes (73 bbls) pumped. Monitor well. Losses diminishing from initial 20 bbls per hour to 9.5 bbls per hour over 4 hour period while building surface volume and LCM pill. Pump and chase 58 bbl LCM pill (with 69psi initial, 165psi high, flow out a 16 %) and observe 30 bbls of losses. Continue to monitor well while mixing surface volume and mixing LCM pill. Estimated losses to 1074 bbls at this point. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCIEI 411 KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Burns DATE Apr 30, 2008 DEPTH 7926 PRESENT OPERATION Circulating, monitoring well TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' 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 7926 / 7588 TVD MW 9.1 VIS 63 PV 13 YP 15 FL 7.4 Gels 7/9/ CL- 30000 FC 1 SOL 3.0 SD 0 OIL 0/97 MBL 0.0 pH 10.0 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE ITCH GAS 502 @ Lead "bubble" after squeezing 18 @ circ after squeezing 22 -28 background TRIP GAS 277 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 22 / 25 PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Move pipe down slightly from 4060' to 4068'. Continue building mud volume in pits. (Weatherford sent corrupted files to research facility in England to attempt to recover data). Build LCM pill (with Magnafiber, G -Seal, Safecarb). Monitor well with trip tank. Finish building mud. (Lose 96 bbls of mud in 10 1/2 hours while building volume). Close annular preventer. Squeeze 45 bbls of LCM to formation. Shut down pumps and monitor DAILY pressures. Squeeze 10 bbls of mud to chase pill. Shut down pumps and monitor pressures. Bleed off pressure, open annular preventer and ACTIVITY monitor well. Mix 10.4ppg LCM pill. Move pipe down to 4079'. Pump 56 bbls of LCM (at 52spm, 8opsi) and displace with 10 bbls 9.1ppg mud (to SUMMARY end of drill pipe). Close annular preventer. Squeeze down 50 bbls with 9.1 ppg mud at 1 bpm, 22spm, 120psi max). Monitor pressures. Open preventer and monitor well. Minor fluid loss (2 1/2 bph). Pull out of hole from 4079' to 3953'. Inspect #1 and #2 mud pumps, and flush clean. Circulate gas out from 3953'. Record maximum gas of 502 units at 1490 strokes, 302 units at 3140 strokes, a second peak to 360 units at 3750 strokes and bottoms up of 277 units at 4370 strokes. Continue circulating gas down to fluctuating background of 18 -28 units. (Note 145 bbls of static and circulating losses and 105 bbls squeezed away for net mud loss of 250 bbls in last 24 hours). EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 ML: 585 REPORT BY Craig Silva • Marathon Oil Company Kenai EPOCH Kenai Gas Field DAILY WELLSITE REPORT Ell III KBU 42 -7RD REPORT FOR Rowland Lawson DATE May 01, 2008 DEPTH 7926 PRESENT OPERATION Lost circulation operations: monitoring well with trip tank while mixing LCM pill TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 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 7926 / 7588 TVD MW 9.7 VIS 60 PV 17 YP 17 FL 6.0 Gels 8/10/ CL- 32500 FC 1 SOL 7.5 SD 0.0 OIL 0193 MBL 0.0 pH 8.3 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE • DITCH GAS 105 Circ. and cond. @ 3943 1 @ shutdown after cond. 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 N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating and conditioning mud. Build LCM pill. Increase mud weight to 9.7ppg. Increase pump rate from 124spm to 148spm and DAILY immediately begin losing mud. Stage pump rate down to 74spm but still lose 45 bbls in 40 minutes. Fill trip tank and monitor well through trip ACTIVITY tank. Run in hole from 3953' to 4060'. Initially lose static 11 bbls, then losses stop. Pump 50 bbl 10.2ppg LCM pill (at 42spm) and displace with SUMMARY 50 bbls mud. Lose 60 bbls spotting pill. Pull out of hole from 4060' to 3953'. Make up floor valve under Topdrive. Make up second 10.2ppg LCM pill. Close annular preventer. Squeeze 58 bbls LCM pill. Open annular preventer and flow back 2 bbls. Monitor well via trip tank while mixing LCM pills and conditioning mud. EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 Consulting: 1300 REPORT BY Craig Silva • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH KBU 42 -7RD REPORT FOR Rowland Lawson / Mitch Bums DATE May 02, 2008 DEPTH 7926 PRESENT OPERATION Circulating out high gases and conditioning hole TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT /HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ 0 KLBS ROTARY RPM 0 @ RPM PUMP PRESSURE 0 0 PSI DRILLING MUD REPORT DEPTH 7926 / 7588 TVD MW 9.8 VIS 60 PV 17 YP 17 FL 6.0 Gels 8/10/ CL- 30500 FC 1 SOL 7.5 SD 0.0 OIL 0/93 MBL 0.0 pH 8.3 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE BITCH GAS 862 @ 7852 2 0 start of circ at 3953 375 TRIP GAS CUTTING GAS 0 0 WIPER GAS 862 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 0 0 CONNECTION GAS HIGH ETHANE (C -2) 0 0 AVG PROPANE (C -3) 0 0 CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG 85 / 835 PENTANE (C -5) 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating and conditioning mud at 3953' while monitoring losses with trip tank. Build 56 bbl LCM pill (with 45 bbls water, 2.5ppb Flo -Vis, 3ppb PolyPac, 22ppb KCL, 15ppb G -Seal, 10ppb MagnaFiber, 20ppb each Safecarb 2/10/20/40/250, 7ppb each MI -Seal fine /medium, 7ppb medium Nutplug, 8ppb coarse Nutplug). Build mud volume and top off pits. Mix 50 bbls of 9.7ppg Flo -Vis mud. Static losses 0.5 bph. Circulate out at 3953' (6500 strokes at 101spm). Record 368 units maximum gas. Run in hole from 3953' to 5403', monitoring well through trip tank. Circulate out through gas buster (6287 strokes at 77spm). Record 634 units maximum gas. Shut off pumps for 5 minutes. Briefly circulate (476 strokes at 51spm). Record 156 units maximum gas. Shut off pumps and monitor for 15 minutes. Well static. Circulate out (4668 strokes at 72spm). Record 400 units maximum gas. Shut off pumps and monitor for 5 minutes. Well is static. Circulate and condition mud (6510 strokes at 101spm). Record DAILY 72 units maximum gas. Shut off pumps and monitor for 5 minutes. Well is static. Run in hole from 5403' to 6402', monitoring well through trip tank. ACTIVITY Circulate out through gas buster and continue to circulate and condition mud after high gas. (13281 total strokes at 77spm). Record 506 units SUMMARY bottoms up gas (at 5156 strokes) and 739 units maximum gas (at 8692 strokes). Maximum gas apparently from bubble of gas moving uphole. Shut off pumps and monitor for 5 minutes. Well is static. Run in hole from 6402' to 7160', monitoring well through trip tank. Circulate out through gas buster and continue to circulate and condition mud after high gas. (15040 total strokes at successive rates of 44/85/55/85 spm). Record 467 units bottoms up gas (at 6211 strokes) and 662 units maximum gas (at 9900 strokes). Maximum gas apparently from gas moving uphole. Shut off pumps and monitor for 17 minutes. Well is static: Run in hole from 7160' to 7852', monitoring well through trip tank. Circulate out through gas buster and continue circulating at report time (to 9108 strokes at 85 spm). Record pre- bottoms up gas peak of 862 units (at 6984 strokes) and, at report time, observe 819 units of gas at 9108 strokes (before eventually recording maximum gas of 2385 units at 10065 strokes from gas migrating uphole). 0 EPOCH PERSONNEL ON BOARD 4 DAILY COST ML: 3275 RW: 585 Consulting: 1300 REPORT BY Craig Silva Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH • KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 03, 2008 DEPTH 7926 PRESENT OPERATION Testing BOPE TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' 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 7926 / 7588 TVD MW 10.1 VIS 60 PV 18 YP 22 FL 4.9 Gels 9/12/ CL- 32000 FC 1 SOL 10.0 SD 0.0 OIL 0/90 MBL 0.0 pH 9.7 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS SUMMARY (units) HIGH LOW AVERAGE S GAS DITCH GAS 2385 @ circ out at 7852 0 @ last circ after MW to 10.1 N/A TRIP GAS CUTTING GAS @ @ WIPER GAS 2385, 2115, 2126, 30 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue circulating at 7852' (from 9108 strokes) to 14358 total strokes. Record maximum gas of 2385 units at 10065 strokes from gas that has apparently migrated uphole. Circulate gas down to 91 units. Shut off pumps and monitor for 4 minutes. Well is static. Run in hole from 7852' and tag bottom at 7926'. Pull back to 7912'. Circulate out and record 2115 units of maximum gas at 8676 strokes. Continue to circulate gas down (to 51 units) and condition hole. Circulate for 13194 total strokes. Shut off pumps and monitor for 3 minutes to check for flow. Well is static. Pull out of DAILY hole from 7912' to 7295' on short wiper trip. Run back in hole from 7295' to 7922'. Circulate bottoms up and record 2126 units of wiper gas (at ACTIVITY 8200 strokes). Continue to circulate, build mud weight and condition well for 29737 strokes total. Mud weight increased from 9.8ppg to 10.1 ppg. SUMMARY Gas circulated down to near 0 units. Check for flow. Well static, no losses. Pull out of hole from 7922' to 7280'. Run back in hole from 7280' to 7922'. Pull up to 7917'. Circulate bottoms up (with 10.1 ppg mud) and record 30 units of wiper gas (at 8400 strokes). Circulate and condition hole (for 12593 strokes total). Fill trip tank. Pump dry job. Pull out of hole from 7917' to surface. Stand back HWDP. Break and lay down muleshoe. Clear and clean rig floor. Pull wear bushing. Run in test plug. Rig up testing equipment. Test annular preventer to 250psi Low / 3500psi High for 10 minutes. Test all rig alarms. Begin testing all other BOPE (upper pipe rams, variable rams, upper and lower Topdrive (kelly) valves, floor and dart valves, check valve, choke manifold valves 10- 11 -12) to 250psi Low / 5000psi High for 10 minutes. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 ML: 585 REPORT BY Craig Silva IP I Marathon Oil Company EPOCIEL Kenai Gas Field DAILY WELLSITE REPORT • KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 04, 2008 DEPTH 7926 PRESENT OPERATION Preparing to pull out of hole laying down 5" drill pipe TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 3RR2 (Old) 8.5 HCC MX09DX 6005345 Open 7926 7926 0 n/a NG Clean out run only 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 7926 / 7588 TVD MW 10.2 VIS 82 PV 63 YP 25 FL 4.6 Gels 11/13/ CL- 29500 FC 1 SOL 10.0 SD 3.0 OIL 0/90 MBL 1.0 pH 8.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS giniG AS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 486 @ TG at 7926 1 @ Initial circ before BU 245 circ during TG TRIP GAS 486 CUTTING GAS @ @ WIPER GAS 39 CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) @ @ CONNECTION GAS HIGH ETHANE (C -2) @ @ AVG PROPANE (C -3) @ @ CURRENT BUTANE (C -4) @ @ CURRENT BACKGROUND /AVG N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue testing remaining BOPE (inside and outside kill valves, HCR, manual choke, blind rams, choke maniforld valves 1 -9) to 250psi Low / 5000psi High for 10 minutes. Perform accumulator drawdown test. Pull test joint. Rig down surface test equipment. Install wear bushing. Pick up, make up and run in hole clean out assembly (8 1/2" mill tooth bit, bit sub, 4 joints 5" HWDP, jars, 17 joints HWDP) to 662'. Continue running in DAILY hole with 5" drill pipe to 5839'. Break circulation and fill pipe at 1421', 2745', 4073' and 5524' while running in. Continue running in hole at slower ACTIVITY rate from 5839' and take 20K weight at 7803'. Wash and ream from 7803' to 7808'. Run in hole very slowly from 7808' and tag fill at 7916'. Wash SUMMARY and ream from 7916' to bottom at 7926'. Circulate bottoms up and record 486 units of trip gas. Circulate out high gas and condition hole. Briefly monitor hole. Well static. Pull out of hole with from 7926' to 7321' on short wiper trip Run back in hole to bottom at 7926'. Circulate bottoms up and record 39 units of wiper gas. Circulate and condition hole. Shut down pumps and monitor for 13 minutes to check for flow. Well is static. Pull out of hole very slowly from 7926' to 7290'. Break circulation and fill pipe. Briefly monitor well. Well static. Pull out of hole slowly from 7290' to 4009'. Monitor well. Prepare to pull out hole laying down 5" drill pipe. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva ill Marathon Oil Company 4111; Kenai Gas Field DAILY WELLSITE REPORT E KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 05, 2008 DEPTH 7926 PRESENT OPERATION Preparing to run EXCAPE completion string TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' 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 0 0 RPM PUMP PRESSURE 0 0 PSI DRILLING MUD REPORT DEPTH 7926 / 7588 TVD MW 10.2 VIS 63 PV 19 YP 25 FL 4.6 Gets 11/13/ CL- 29500 FC 1 SOL 10.0 SD 3.0 OIL 0/90 MBL 1.0 pH 8.6 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 40 DITCH GAS 8 0 spotting LCM pill 3 0 when shutting down pumps N/A TRIP GAS CUTTING GAS 0 0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C -1) 0 0 CONNECTION GAS HIGH ETHANE (C -2) 0 0 AVG PROPANE (C -3) 0 0 CURRENT BUTANE (C -4) 0 0 CURRENT BACKGROUND /AVG N/A PENTANE (C -5) 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Spot in Expro control line spools and load pipe racks with (17) production modules in advance to later run EXCAPE completion string. Rig up to lay down drill pipe. Pull out of hole from 4009' laying down 5" drill pipe, 5" HWDP, crossovers, flex joints, jars, bit sub, bit. Run in hole with 5" drill pipe to 2840'. Monitor well. Well losing approximately 1 bbl /hr. Continue running in hole with 5" drill pipe to 4023'. Fill pipe. Pump and spot LCM DAILY pill. Record 8 units maximum gas. Shut down pumps and monitor well for 20 minutes. Well static. Pull out of hole from 4023' laying down 5" drill ACTIVITY pipe. Monitor well. Well losing less than 0.5 bbl /hr. Run in hole 26 stands of 5" drill pipe in derrick to 1690'. Pull out of hole from 1690' laying down SUMMARY 5" drill pipe. Blow down all mud lines and flush mud pumps. Lay down make up tongs. Rig down and load off all rig floor bit subs, drill pipe tools, spinners, and tongs. Clear and clean rig floor and prepare for running EXCAPE production string. Pull wear ring. Change out bails and elevators. Pick up, install and rig up Weatherford tongs, casing running tools, handling tools and accessory equipment. Install fill -up tool. Hold pre -job meeting with all hands on procedures and safety for running 3 1/2" EXCAPE completion string. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva I Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPOCH 0 KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 06, 2008 DEPTH 7926 PRESENT OPERATION Preparing to circulate after running in TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 4078' 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 7926 / 7588 MW 10.1 VIS 60 PV 17 YP 21 FL 5.2 Gels 9/11/ CL- 28500 FC 1 SOL 10.0 SD 3.0 OIL 0/90 MBL 1.0 pH 8.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE •DITCH GAS 4 @ brief circ when filling pipe 2 @ brief circ when filling pipe N/A 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 N/A PENTANE (C -5) 0 0 HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Conclude pre -job meeting on procedures and safety for running 3 1/2" EXCAPE completion string. Rig up Weatherford fill -up line, circulating line, and floor valves. Use crane to position sheave with control lines previously fed through and aligned. Pull down to floor and tie off control lines. Rig DAILY up Pollard Wireline Service to perform banding of control lines. Inspect and insure that previously staged out modules are in correct order on short ACTIVITY pipe rack. Begin running in hole with 3 1/2" EXCAPE completion string as per Marathon program. Pick up, make up and run in shoe tract. Check SUMMARY floats. Carefully pick up, make up and run in hole 3 1/2" completion section with 17 EXCAPE modules (plus 27 pups and a flapper removal) to 2282'. Circulate and fill pipe. Record 2 units of gas. Continue running in hole with 3 1/2" EXCAPE completion string to near casing shoe at 4031'. Circulate and fill pipe. Record 4 units of gas. Continue running 3 1/2" EXCAPE completion string in hole from 4031' to 7905'. Rig up circulating swage and line. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2525 RW: 585 REPORT BY Craig Silva I Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT E • KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 07, 2008 DEPTH 7926 PRESENT OPERATION Waiting on cement. Preparations for installing tree. Partial rig down. TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" @ 7005' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B /C PULLED 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 7926 / 7588 TVD MW 10.1 VIS 60 PV 17 YP 21 FL 5.2 Gels 9/11/ CL- 28500 FC 1 SOL 10.0 SD 3.0 OIL 0/90 MBL 1.0 pH 8.3 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 0 DITCH GAS 57 @ TG at 7905 1 @ Displacing 14 Circ and cond TRIP GAS 57 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 N/A PENTANE (C -5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY /REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Finish rigging up circulating line and head. Begin circulating, bringing pumps up slowly to handle LCM over shakers. Terminate control lines and cable. Lower down sheave with crane and then rig down and load off. Continue circulating. Attempt to move pipe, but pull 135K and pipe still did not free up. Slack off to 55K and work pipe while continuing to circulate. Add 0.5% Lubetex and continue to work pipe. Circulate bottoms up and record 57 units of trip gas (with 10.1 mud all around). Still unable to free up after passing Lubetex through open hole annulus. Pipe is apparently differentially stuck. Continue to circulate and condition mud. Stop pumping and monitor well for losses. Losing 0.5 bbls per hour. Rig up Expro Wireline Service equipment and hold brief pre -job meeting on wireline operations. Run in hole with gamma correlation log to determine perforating positions of EXCAPE modules. Log up and pull out of hole with wireline gamma tool assembly. Do correlation determination with gamma log. Note that that if completion string can be worked free, the shoe will be adjusted up 8.00' to 7987.82'. Rig down Expro WLS. Rig up circulating line and head. Pump slowly (at 11spm, 200psi, 21gpm), pull to 135K, slack off, shut down pumps and pull to 135K again with the pumps off. Unable to free pipe on both attempts. Marathon decides to not attempt more aggressive pulls on completion string since almost all production objectives should be achieved by perforating and fracturing close to the pre - planned depths, and the risk of damage to the control lines (effectively terminating the DAILY EXCAPE completion) is too great. Shoe accepted in present stuck position at 7905.82'. Resume circulating and conditioning well while mixing ACTIVITY inhibited mud. Pump 135 bbls (2907 strokes at 57spm, 284gpm, 275psi) of mud treated with Meta - Bisulfite and Conqor 303A to be spotted as a SUMMARY corrosion inhibitor in the annulus and record 26 units maximum gas. Finish pumping inhibitor. Rig down circulating head. Rig up cementing head and line up to BJ cementers. Head will have plug installed and a wash -up tee. Hold consecutive pre -job safety meetings with BJ on cementing procedures and safety for cement job. Pump 6.0 bbls of water to fill lines. Pump 0.6 bbls more of water and pressure test cementing lines to 3555psi. Mix and pump 50.7 bbls of 10.3ppg Sealbond Sweep, using 46.3 bbls of water. After sweep, pump 196 bbls of batched 10.5ppg lead cement slurry (338 sacks of Class G cement plus accelerator chemicals mixed with 101.75 bbls water to yield 12.658 gal /sk and 3.314 cuft/sk) and follow with 152 bbls of batched 15.8ppg tail cement slurry (689 sacks of Class G cement plus accelerator chemicals mixed with 80.60 bbls water to yield 4.911 gal /sk and 1.160 cuft/sk). Close valve to head and open wash -up valve. Pump 11 bbls water to wash lines from floor out to slop tank • until returns are clean. Close wash up valve and open to head. Drop plug and pump out with 5.4 bbs of KCL brine. Displace cement with 67.7 bbls of 6% KCI brine. (Total displacement is 68.2. bbls). Record maximum 12 units of gas while displacing. Bump plug with 1133psi over displacement pressure (2802psi total). (Note 15 bbls of cement lost to hole during pumping). Bleed off. Check floats. Cement in place at 14:57 hours. Begin waiting on cement and monitoring well. Flush, blow down and rig down cementing head and lines. Lay down cementing head. Clear and clean rig floor. Flush and blow down all mud pumps and pump lines, choke and choke lines, mud manifold and all mud lines, and fill and trip lines. Flush and washout stack. Pump out and clean trip tank. Begin sucking out and cleaning pits. Pump mud out Hansen Tank and remaining mud and other fluids to Vac trucks for haul -off. Lay down mousehole. Remove and load off drip pan. Load up trailers. Fuel camp generator. Fill camp water. Continue waiting on cement and monitoring well. Observe that well was initially static after cement job, but started small amount of fluid after approximately 4 • hours and increasing to >1.0 bbl per hour. Replace falling fluid levels with water from rig floor and continue to monitor. EPOCH PERSONNEL ON BOARD 2 DAILY COST ML: 2425 RW: 585 REPORT BY Craig Silva • • Marathon Oil Company Kenai Gas Field DAILY WELLSITE REPORT EPJCIi III KBU 42 -7RD REPORT FOR Rowland Lawson / Dan Byrd DATE May 08, 2008 DEPTH 7926 PRESENT OPERATION General rig down and move operations TIME 24:00 YESTERDAY 7926 24 HOUR FOOTAGE 0 CASING INFORMATION 3 1/2" © 7905' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T /B /C PULLED 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 Surface MW 8.65 VIS 28 PV 1 YP 1 FL Gels CL- 30000 FC KCL Brine SOL SD OIL MBL pH 8.5 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE 0 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 Continue waiting on cement and monitoring well. Continue minor rig -down procedures and loading off and transporting of non - critical rig and third party equipment and facilities. Clean up location as transport loads are hauled away. Finish cleaning all pits and hauling off remaining fluids. Rig down flow nipple, riser, choke line, kill line, fill -up line and turnbuckles. Rig down accumulator lines and panic line. Rig up bridge cranes to BOP DAILY stack. Rig down standpipe manifold. Rig down #3 mud pump. Pick up BOP stack. Run control and electric lines out tubing head outlet. Set weight ACTIVITY on slips. Rough cut 3 1/2" casing above slips and lay down landing joints. Set stack on rack. Nipple down and remove BOP stack and spools. SUMMARY Make final clean cut on 3 1/2" casing. Run control lines through 3 1/2" packoff and terminate. Set and install packoff. Install Swagelok fittings around control lines. Run in lock -down pins. Test packoff to 5000psi. Nipple up 13 5/8" by 3 ?" 5M tubing head adaptor to the 3 1/8" 5M tree, terminating control lines through the bottom flange. Set 2 -way check valve in tubing hanger. Fill tree with methanol and test to 5000psi. Install BPV. Install EXCAPE control line warning sign. Completion is to be done without a rig. Begin rig down and move of all Glacier No.1 rig modules, rig equipment, support trailers,) communication equipment, camp trailers and camp accessory equipment to the nearby KBU 14 -8 location. EPOCH PERSONNEL ON BOARD 1 DAILY COST ML: 900 Rig down: 2025 REPORT BY Craig Silva •
