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Home My WebLink About204-148 • flJ V ay a _ 555 Cordova Street Anchorage, AK 99501 DEPT. OF ENVIRONMENTAL CONSERVATION PHONE: (907) 269 -3094 DIVISION OF SPILL PREVENTION AND RESPONSE FAX / www. 7687 http : //w w w. dec c. . st a te. ak. us INDUSTRY PREPAREDNESS PROGRAM RECEIVED Exploration Production & Re e ' t0 � April 23, 2007 AP 2 2007 Alaska Oil 'has 1 u Ms. Faye Sullivan Anchorage Union Oil Company of California - UOCC (formerly Unocal) 909 West 9 Avenue Anchorage, AK 99501 't1 =\t (! ?rob ter' '0 Re: Oil Discharge Prevention and Contingency Plan for Alaska Red Well, Plan Number 044 -CP -5103 day ° CY L \ \ • S 1 1 � -CJL{ �C'tccx D0L-1 -tom \ /s - Q4 Dear Ms. Sullivan: E.YQcrec,, The above - referenced oil discharge prevention and contingency plan (plan) is an Alaska Department of Environmental Conservation (ADEC) approved plan, even though exploration activities have not been conducted since 2004. The plan will expire on May 24;2009. In January of this year, I sent an email to you with a letter outlining the guidelines for implementing our recently promulgated pollution prevention regulation revisions. I have attached a copy of the letter for your convenience. Please be aware that significant revisions to the Red Well plan must be submitted to ADEC by August 1, 2007. This is a good time for UOCC to consider whether further exploration activities will be conducted under this plan. If not, .I suggest that you submit a request to rescind the plan before August 1, 2007. ADEC can consider a request to rescind your plan once the following issues are addressed: a. Wells must be adequately plugged and abandoned in accordance with Alaska Oil and Gas Conservation Commission (AOGCC) regulations. Please contact the AOGCC regarding the appropriate P &A requirements for your well(s). ADEC must receive confirmation, in writing (email is adequate) from the AOGCC that the abandoned well(s) meet their requirements; OR b. You must request a determination from AOGCC that the well has not penetrated a formation capable of flowing oil to the ground surface. AOGCC will send the determination to ADEC. c. Once item (a) or (b) is completed, ADEC will be able to determine that AS 46.04.030 (Oil Discharge Prevention and Contingency Plans) and AS 46.04.040 (Proof of Financial Responsibility) no longer apply to this facility since no additional exploration, production or drilling activity into potential oil bearing zones will be performed. AS 46.04.900(8).When we make the determination that the provisions of AS 46.04.030 and AS 46.04.040 do not apply, then you can request a modification of the plan approval, such as to rescind that approval. UOCC, not a contractor or consultant, must request the rescission of the plan approval in writing. In Printed on =2e,-,.:i;..c: • • Ms. Faye Sullivan 2 April 23, 2007 Union Oil Company of California Once the requirements described above are met, ADEC can officially rescind the Oil Discharge Prevention and Contingency Plan (ODPCP) for Alaska Red Well. If you have any questions regarding this process, please contact me at (907) 269 -7680. Sincerely, /' 71111° Lydia Miner Section Manager Attn: January 23, 2007 letter re: implementation of new oil pollution prevention regulations cc: Betty Schorr, Industry Preparedness Program Manager, ADEC Laurie Silfven, EPR, ADEC Chris Pace, Financial Responsibility, ADEC Tom Maunder /Steve Davies, AOGCC Jean Bodeau, UOCC s=ATE OF A A Anchorage, AK 99501 PHONE: (907) 269 -3094 DEPT. OF ENVIRONMENTAL CONSERVATION FAX: (907) 269-7687 DIVISION OF SPILL PREVENTION AND RESPONSE http: / /www.dec.state.ak.us INDUSTRY PREPAREDNESS PROGRAM January 23, 2007 Via email Fax Oil Discharge Prevention and Contingency Plan Holder Subject: Implementation of New Oil Pollution Prevention Regulations (18 AAC 75) Dear Plan Holder: On December 1, 2006 the Lieutenant Governor signed into law new regulations regarding oil pollution prevention. These regulations became effective on December 30, 2006, and several of them will impact how you operate and also your oil discharge prevention and contingency plan (C- Plan). This letter provides guidance on how the Alaska Department of Environmental Conservation (ADEC) will implement the new regulations, and how you may ensure continued compliance. A copy of the new regulations can be found on -line at http: / /www.dec. state .ak.us /spar /ipp /docs /18AAC75Art1 Dec2006.pdf. The effects of the new regulations generally fall into two categories: 1. Changes in required pollution prevention methods and means as described in 18 AAC 75 Article 1, and 2. Changes in the format and content required in the C -Plan, as described in 18 AAC 75 Article 4. ADEC's regulations at 18 AAC 75 Article 1 pertain to oil pollution prevention activities, such as personnel training, design and construction of oil storage tanks and piping, and inspection of tanks and piping. Most of the revisions to the regulations are effective as of December 30, 2006. The exceptions include some regulations that involve development of a program, such as a preventative maintenance program for flow lines, which have a one year phase -in period, and design and construction standards for new construction, which generally have a two -year phase - in period. Table 1 provides general guidance to implementation of the regulations in 18 AAC 75 Article 1. This implementation schedule covers general subject areas only and is not meant to be fully inclusive. It is incumbent upon you as a plan holder to review the changes to the regulations and take appropriate actions to maintain compliance. 2 Imple ntation 18 AAC 75 IP January 23, 2007 aoYe- ® ',"8? A -t -v " r c 7w wy WOW 11 V1 fi . t ` X14-re , X" a . - s ", q " t.St :CA ��dsraa - .. -n.o ..». a"a. ^ xa r> ,� ,rtx� Compliance Regulation Subject Date December 30, Inspections and operational activities listed in 18 AAC 2006 General 75 Article 1 without a phase -in date (previously existing and new regulations). 18 AAC 75.047(c) Corrosion control programs for flow lines. 18 AAC 75.047(d) Preventative maintenance programs or leak detection for flow lines. December 30, 18 AAC 75.047(e) Line markers for flow lines. 2007 18 AAC Operation and maintenance of cathodic protection 75.065(h), systems on field - constructed aboveground oil storage 18 AAC 75.065(i) tanks. 18 AAC 75.080(j) Maintenance and inspection of facility oil piping. 18 AAC 75.045(d) Design and installation of wellhead sumps at production or exploration wells. 18 AAC 75.047(b) Design and construction standards for flow lines. 18 AAC 75.065(g) Installation of internal lining systems on field - constructed aboveground oil storage tanks. 18 AAC 75.065(j) Design, construction, and installation of field - constructed aboveground oil storage tanks. December 30, 18 AAC 75.065(k) High liquid level alarms on field - constructed 2008 aboveground oil storage tanks. 18 AAC Cathodic protection systems for field - constructed 75.065(m) aboveground oil storage tanks. 18 AAC 75.066 Shop- fabricated aboveground oil storage tanks. 18 AAC 75.080(c) Design and construction standards for facility oil piping. 18 AAC 75.080(e) Construction and installation of buried facility oil piping. 18 AAC 75.080(f) Cathodic protection systems for facility oil piping. Changes to your C -Plan format and content will be implemented according to the schedule in Table 2. All plan holders must submit an amendment to the Department incorporating changes to their plan due to the revisions to Article 4 regulations no later than August 1, 2007. • 3 Impipentation 18 AAC 75 '' January 23, 2007 , s 0 ®� 3� to ' � � e €� S o U le 4 Edits to these plans may be submitted to meet the new regulations before approval or changes to these plans must be submitted to meet the new C -Plans Currently in regulations no later than August 1, 2007. Review i for Rev iew Subm before tted If your C -plan expires within 3 months of the date of this letter, please May 15, 2007 contact the Section Manager for your review and discuss your amendment options with him/her. C -Plans Currently Changes to currently approved C -Plans to meet the new regulations Approved or (detailed in 18 AAC 75.425) may be submitted with the new or renewal Submitted for application, if it is submitted by August 1, 2007. Revisions to ALL Review after May PLANS must be submitted to ADEC no later than August 1, 2007. 15, 2007 Please contact the appropriate section manager for your facility if you have any questions. Sincerely, Betty Scho Industry Preparedness Program Manager • ~~~~ .u ~-~ w MICROFILMED 03/01 /2008 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:~LaserFiche\CvrPgs_InsertslMicrofilm Marker.doc - 5 o~ .z.~~ Co DATA SUBMITTAL COMPLIANCE REPORT 9/28/2006 A~~O-~1~~~lo~Y Permitto Drill 2041480 Well Name/No. RED 2 Operator UNION OIL CO OF CALIFORNIA MD 10100/ TVD 9280 ./ Completion Date 9/5/2004 /' UIC N Completion Status 1-GAS Current Status 1-GAS REQUIRED INFORMATION DATA INFORMATION Types Electric or Other Logs Run: 6-1/8 PEX, DSI Well Log Information: Electr Digital Dataset Med/Frmt Number Mud Log Yes Directional Survey Yes Samples No (data taken from Logs Portion of Master Well Data Maint Name Induction/Resistivity Interval . Log Log Run OH/ Scale Media ./ No Start Stop CH Received Comments _BV 1 4532 9950 Open 11/19/2004 ARRAY INDUCTION/LlTHO- Mb~~ DENSITY/COMPENSATED ,Vt> ç«.y:Ck- NEUTRON/COMPRESSIO : NAL DT 'PLA TFORM EXPRESS' 25 ~ )'1\1::> 4550 10100 Open 11/19/2004 MPR/GRlRWD 2 Ser/ 80 10100 Open 11/23/2004 25 ßeP t liD 4550 10100 Open 11/19/2004 MPRlGR/RWD '-. B~ 1 2460 10000 Case 11/19/2004 STATIC PRESSURE~EMPERATU RE SURVEY/FLUID 5 '"-BS~ LEVEUFLUID ENTRY 7880 8210 Case· 41/22/2004 COMPLETION RECORD/2 . 1/4" HSD 2306 I POWERJET 6SPF, 60 'B# DEGREE PHASED 5 9732 9792 Case 11/22/2004 PERF RECORD 2.25" ~ 2306 PJ 6spf 9090 9430 Case 11/23/2004 Completion Record 2 1/4" HSD 2306 Powerjet 6 spf, 60 Degree Phased 5 -BsJ 9060 9265 Case 11/23/2004 HALIBURTON FASDRILL BRIDGE PLUG 5 '- BS/ 2460 9430 Case 11/23/2004 PRESSURE~EMP SURVEY/FLUID LEVEUFLUID ENTRY 5 -Br 5100 10117 Case 11/23/2004 CEMENT BOND LOG Induction/Resistivity Mud Log Induction/Resistivity Pressure 12851 Completion_ 12851 Perforation ...... I tOg Completion i~ ~ Casing collar locator og 1~ Pressure ~~ Cement Evaluation Permit to Drill 2041480 DATA SUBMITTAL COMPLIANCE REPORT 912812006 Well NamelNo. RED 2 Operator UNION OIL CO OF CALIFORNIA TVD 9280 Sonic Completion Status 5 S~ 1-GAS Current Status 1-GAS 9180 Open 11/23/2004 ~ 10100 ~ I I Log /' I I I Log I I ~ C ftl6/sJ,AJ 11788 Completion I -+L09 I I Completion Date 9/5/2004 12012 Induction/Resistivity ~ Induction/Resistivity ~ 12012--induction/Resistivity 11788 Completion rõ9 I~ ~ Report: Final Well R Mud Log Mud Log Mud Log Well Cores/Samples Information: Name ADDITIONAL INFORMATION Well Cored? Y ~ Chips Received? ~/ N Analysis Received? ~ 4532 4550 10100 Open 11/23/2004 25 Blu /( /" 25 Blu 1 4550 10100 Open 11/23/2004 4550 10100 Open 11/23/2004 9090 9430 Case 11/23/2004 5 _Blu 9430 Case 11/23/2004 9090 0 0 Open 11/23/2004 2 Col 80 10100 Open 11/23/2004 2 Col 80 10100 Open 11/23/2004 2 Col 80 10100 Open 11/23/2004 Sample Interval Set Start Stop Sent Received Number Comments Daily History Received? ~: Formation Tops API No. 50-231-20025-00-00 UIC N DIPOLE SHEAR SONIC-l TOOL i MULTIPLE PROPAGATION RESISTIVITY/GAMMA RAY MULTIPLE PROPAGATION RESISTIVITY/GAMMA RAY MULTIPLE I PROPAGATION ~~ISTIVITY/GAMMA I COMPLETION RECORD/2 1/4" HSD 2306 . POWERJET, 6 SPF, 60 I DEGREE PHASED [ COMPLETION RECORD/2 [ 1/4" HSD 2306 I POWERJET, 6 SPF, 60 I DEGREE PHASED I Epoch Final Well Report L w/CD I~ Ic.¡~~ I I I ] ~ Drilling Dynamics Log LWD Combo Log . . Permit to Drill 2041480 MD 10100 Comments: {):>N !ÀOLl DATA SUBMITTAL COMPLIANCE REPORT 9/28/2006 Well Name/No. RED 2 TVD 9280 Completion Date 9/5/2004 Completion Status 1-GAS Current Status 1-GAS J"~d,,"1-·~.. ~ &J ~~Ha .''1 .t... A- ~ t {\AJ Compliance Reviewed By: Jh Operator UNION OIL CO OF CALIFORNIA ,V'~ API No. 50-231-20025-00·00 UIC N Date: ó{~~~Ço -~ . . . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocaJ.com . UNOCAL Debra Oudean G & G Technician Date: November 19, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL- RED 2 D D D .-- ELL REPORT LOG PDF FILES, LAS FILES, MORNING REPORTS, FINAL WELL WELL 1 REPORT, DML DATA ~ o o CD W I- o Z :/r')tff'f)" Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. I Rece;vedB~ ~Oµ I Date, Å ~ {(f IJ )Jßr.¡ ~ Dr{ J 1-18 r:!~. . STATE OF ALASKA . ALAS AND GAS CONSERVATION COMMI . WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: OilD GasE] Plugged U Abandoned U Suspended U WAGU 1b. Well Class: 20AAC 25.105 20AAC25.110 Development D Exploratory 0 GINJO WINJO WDSPL 0 No. of Completions 1 Other Service 0 Stratigraphic Test 0 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Union Oil Company of California Aband.: 9/5/04 204-148 3. Address: 6. Date Spudded: 13. API Number: PO Box 196247, Anchorage, AK 99519-6247 August 14,2004 50-231-20025-00 4a. Location of Well (Governmental Section): 7, Date TD Reached: 14. Well Name and Number: Surface: 377' FNL 458' FWL Sec. 8 T4S R13W August26,2004 Red-02 Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): 1,926' FNL 1,005' FEL Sec. 7 T4S R13W 894' MSL Total Depth: 9. Plug Back Depth(MD+ TVD): Nikolaevsk UnitlTyonek 2,886' FNL 1,822' FEL Sec. 7 T4S R13W 9,223/8,425' 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 212,863 y- 2,140,968 10,100/9,280' Red Pad TPI: x- 211,354 y- 2,139,429 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- 210,513 y- 2,138,520 n/a n/a 18. Directional Survey: Yes E] No U 19. Water Depth, if Offshore: 20. Thickness of Permafrost: n/a feet MSL n/a 21. Logs Run: 6-1/8 PEX, DSI 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 82.77 K-55 0 59' 0 58' n/a Driven 9-5/8" 40 L-80 0 1,521' 0 1,520' 12-114" 78bb112.8ppg lead/40bbI15.8ppg tail 7" 26 L-80 0 4,601' 0 4,335' 8-1/2" 45bbI12.8ppg lead/18bbl 15.8ppg "G" tail - 3-1/2" 9.2 L-80 4,310' 10,095' 4,085' 9,275' 6-1/8" 171bbl12ppg litecrete 23. Perforations open to Production (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) T-7 6,732 to 6,792' (6 spf, 9/7/04); T-25: 8,038' to 8,088' (6 spf, 9/7/04); T- 3-1/2" 9.2# L-80 4,338' Baker ZXP pkr@4,301' 65: 9,298' to 9,344' (6 spf, 9/5/04) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a n/a ..... ", ;'V{)¡/. , .~ : ¿Of]ti 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): n/a flowinq Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: I~as-Oil Ratio: 9/7/2004 24 Test Period -+0 0 0 n/a n/a Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 0 0 24-Hour Rate ..... 0 0 0 n/a 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". r""f;< . none i~ ¡ .: ¡ '.. ,~ RBDMS 8FL NOV 1 6 2004 J v.' 'Ii; i t:"m.~.__::;:;j Form 1 0-407 Revised 12/2003 CONTINUED ON REVERSE ~f 6 28. GEOLOGIC MARKERS NAME TVD BLG-80BOS BLG-120 Tyonek T6 BOS T7 TOP T7 BOS T10 BSE T17 BOS T25 T25 BOS T50 MidTyonek UNC T65 TOP T65 BOS T70 TOP T83 TOP 4,922 5,503 6,037 6.531 6.686 6,793 7,010 7,545 8,012 8,092 8.592 9.076 9,331 9,357 9,567 9,942 4,609 5,110 5,576 6.002 6.136 6,230 6,415 6,881 7,292 7.364 7.822 8.282 8,529 8,554 8,759 9,125 30. List of Attachments: Morning report summmary. directional survey. wellbore schematic 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name: Tim C. BrandenburQ Signature: 29. Include and briefly detailed supporting "None". FORMATION TESTS rize test results. List intervals tested, and attach s necessary. If no tests were conducted, state Testing operations summarized in daily operations reports (attached). Contact: Rob Stinson 263-7804 Title: Drilling Manager Phone: 907-276-7600 Date: 11/3/2004 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for / njection, 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 elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 20: True vertical thickness. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). 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: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 . UNOCAL8 API: 50-231-20025 AOGCC: 204-148 377' FNL & 458' FWL Sec. 8, T4S, R13W, SM RT-THF: 16.72' Tbg lift threads - 3W IBT Tree cxn - 2Y:." Bowen cxn Production Tubina: 3W, 9.2 ppf, L-80, IBT to 4338' - Annulus loaded with 6% KCI fluid & corrosion inhibitor Completion - Baker chemical injection nipple at 2497' with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4302' - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 4338' Pluas: Halliburton Fasdrill composite bridge plug at 9250' (9/6/04) capped with 27' of cement to 9223' (est.) Directional Data: max hole angle = 32.0 deg KOP = 1950' max dogleg 3.7 deg/100' at 2944' Red-2 schematic 9-8-2004 .:::}::{{ . Well Name: Red #2 Field: Wildcat State: Alaska Conductor: 16", 0.0625" wall, 82.77 ppf, K-55 to 59' Surface Casina: 9%", 40 ppf, L-80, BTC to 1521' Cmnt with 78 bbl of 12.8 ppg lead and 40 bbl of 15.8 ppg tail "G" Intermediate Casina: 7", 26 ppf, L-80, BTC-Mod to 4601' Cmnt with 45 bbl of 12.8 ppg lead lead and 18 bbl of 15.8 ppg "G" tail. Open Perfs: T-7: 6732' - 6792' (6 spf, 9/7/04) T-25: 8038' - 8088' (6 spf, 9/7/04) Isolated Perfs: T-65: 9298' - 9344' (6 spf, 9/5/04) Production Liner: 3Y:.", 9.2 ppf, L-80, IBT liner from 4310' - 10,095' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4301' Cemented with 171 bbl of 12.0 ppg Litecrete Drawn by: JGE July 14, 2004 >Information >Well >Directional Surveys >Fervey -~~~ . Select Well: RED 2 Report Name Well Date Created Position Log RED2 10/27/2004 Well Name CURRENT STATUS API KB Surf X Surf Y (ft) (ft) (ft) :·····TnterpoÎaiê-l RED 2 UNKNOWN 502312002500 894 212,863 2,140,968 MD TVD SSTVD X Off Y Off X Y Inc Azimuth (ft) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (deg) 0 0 894 0 0 212,863 2,140,968 0.0 0 50 49 845 0 0 212,863 2,140,968 0.3 257 100 99 795 0 0 212,863 2,140,968 0.4 240 150 149 745 0 0 212,863 2,140,968 0.4 261 200 199 695 -1 0 212,862 2,140,968 0.3 235 250 249 645 -1 0 212,862 2,140,968 0.3 218 300 299 595 -1 0 212,862 2,140,968 0.2 221 350 349 545 -1 0 212,862 2,140,968 0.2 255 400 399 495 -1 0 212,862 2,140,968 0.2 228 450 449 445 -1 0 212,862 2,140,968 0.1 232 500 499 395 -1 0 212,862 2,140,968 0.1 235 550 549 345 -1 -1 212,862 2,140,967 0.2 245 600 599 295 -2 -1 212,861 2,140,967 0.1 221 650 649 245 -2 -1 212,861 2,140,967 0.2 267 700 699 195 -2 -1 212,861 2,140,967 0.1 254 750 749 145 -2 -1 212,861 2,140,967 0.1 240 800 799 95 -2 -1 212,861 2,140,967 0.1 228 850 849 45 -2 -1 212,861 2,140,967 0.2 261 900 899 -5 -2 -1 212,861 2,140,967 0.1 212 950 949 -55 -2 -1 212,861 2,140,967 0.1 208 1,000 999 -105 -2 -1 212,861 2,140,967 0.2 244 1,050 1,049 -155 -2 -1 212,861 2,140,967 0.2 236 1,100 1,099 -205 -3 -1 212,860 2,140,967 0.2 238 1,150 1,149 -255 -3 -1 212,860 2,140,967 0.2 260 1,200 1,199 -305 -3 -1 212,860 2,140,967 0.2 279 1,250 1,249 -355 -3 -1 212,860 2,140,967 0.1 274 1,300 1,299 -405 -3 -1 212,860 2,140,967 0.1 213 1,350 1,349 -455 -3 -1 212,860 2,140,967 0.1 231 1,400 1,399 -505 -3 -1 212,860 2,140,967 0.1 239 1,450 1,449 -555 -3 -1 212,860 2,140,967 0.2 252 1,619 1,618 -724 -4 -2 212,859 2,140,966 0.3 262 1,808 1,807 -913 -6 -2 212,857 2,140,966 0.6 227 1,903 1,902 -1,008 -7 -3 212,856 2,140,965 0.8 238 1,997 1,996 -1,102 -9 -5 212,854 2,140,963 3.1 234 2,092 2,091 -1,197 -14 -9 212,849 2,140,959 4.5 225 2,187 2,186 -1,292 -21 -15 212,842 2,140,953 6.7 223 2,281 2,279 -1,385 -30 -25 212,833 2,140,943 9.2 222 2,376 2,372 -1,478 -41 -38 212,822 2,140,930 12.1 219 2,471 2,465 -1,571 -56 -54 212,807 2,140,914 14.9 221 2,565 2,555 -1,661 -74 -73 212,789 2,140,895 17.5 222 2,660 2,645 -1,751 -95 -95 212,768 2,140,873 19.8 225 2,754 2,733 -1,839 -119 -119 212,744 2,140,849 22.4 224 2,849 2,819 -1,925 -147 -146 212,716 2,140,822 25.8 223 2,944 2,903 -2,009 -177 -178 212,686 2,140,790 29.2 222 3,038 2,985 -2,091 -210 -212 212,653 2,140,756 31.3 223 3,133 3,066 -2,172 -245 -247 .18 2,140,721 31.6 223 . 3,227 3,146 -2,252 -279 -283 ,584 2,140,685 32.0 223 3,322 3,227 -2,333 -313 -318 212,550 2,140,650 30.6 222 3,417 3,308 -2,414 -347 -354 212,516 2,140,614 31.0 222 3,511 3,390 - 2, 496 -379 -388 212,484 2,140,580 28.8 222 3,606 3,473 -2,579 -410 -421 212,453 2,140,547 28.5 222 3,701 3,557 -2,663 -441 -454 212,422 2,140,514 28.8 221 3,796 3,640 -2,746 -473 -488 212,390 2,140,480 29.1 222 3,891 3,723 - 2,829 -505 -522 212,358 2,140,446 29.4 222 3,985 3,804 -2,910 -537 -555 212,326 2,140,413 29.8 223 4,080 3,887 -2,993 -569 -589 212,294 2,140,379 29.9 222 4,175 3,969 -3,075 -602 -623 212,261 2,140,345 30.1 222 4,270 4,051 -3,157 -635 -658 212,228 2,140,310 30.4 223 4,364 4,132 -3,238 -669 -692 212,194 2,140,276 30.8 223 4,458 4,213 -3,319 -702 -727 212,161 2,140,241 31.1 223 4,501 4,249 -3,355 -718 -743 212,145 2,140,225 31.1 223 4,588 4,324 -3,430 -750 -775 212,113 2,140,193 31.8 222 4,638 4,366 -3,472 -768 -794 212,095 2,140,174 31.7 222 4,732 4,446 -3,552 -801 -830 212,062 2,140,138 31.3 221 4,827 4,528 -3,634 -834 -867 212,029 2,140,101 31.1 221 4,921 4,608 -3,714 -866 -903 211,997 2,140,065 30.5 219 5,016 4,690 -3,796 -898 -939 211,965 2,140,029 30.5 223 5,111 4,772 -3,878 -932 -973 211,931 2,139,995 29.5 223 5,206 4,854 -3,960 -966 -1,007 211,897 2,139,961 31.0 225 5,300 4,935 -4,041 -1,000 -1,040 211,863 2,139,928 30.8 224 5,395 5,017 -4,123 -1,035 -1,074 211,828 2,139,894 30.4 223 5,489 5,098 -4,204 -1,067 -1,108 211,796 2,139,860 29.7 222 5,584 5,181 -4,287 -1,099 -1,143 211,764 2,139,825 29.5 220 5,679 5,263 -4,369 -1,131 -1,177 211,732 2,139,791 29.9 224 5,773 5,345 -4,451 -1,164 -1,210 211,699 2,139,758 29.5 223 5,868 5,428 -4,534 -1,196 -1,243 211,667 2,139,725 28.6 224 5,963 5,511 -4,617 -1,229 -1,276 211,634 2,139,692 29.8 223 6,057 5,593 -4,699 -1,262 -1,309 211,601 2,139,659 29.3 223 6,152 5,676 -4,782 -1,294 -1,341 211,569 2,139,627 28.6 224 6,246 5,758 -4,864 -1,327 -1,373 211,536 2,139,595 29.3 225 6,341 5,840 -4,946 -1,362 -1,406 211,501 2,139,562 31.9 227 6,436 5,921 -5,027 -1,399 -1,439 211,464 2,139,529 31.2 227 6,530 6,001 -5,107 -1,435 -1,471 211,428 2,139,497 30.9 227 6,625 6,083 -5,189 -1,471 -1,504 211,392 2,139,464 29.7 226 6,719 6,165 -5,271 -1,504 -1,535 211,359 2,139,433 28.6 225 6,814 6,248 -5,354 -1,538 -1,568 211,325 2,139,400 30.9 223 6,909 6,329 -5,435 -1,573 -1,603 211,290 2,139,365 31.9 225 7,003 6,409 -5,515 -1,608 -1,637 211,255 2,139,331 30.8 224 7,098 6,491 -5,597 -1,642 -1,670 211,221 2,139,298 29.6 224 7,193 6,575 -5,681 -1,675 -1,703 211,188 2,139,265 28.4 223 7,288 6,658 -5,764 -1,707 -1,735 211,156 2,139,233 29.0 223 7,382 6,740 -5,846 -1,740 -1,768 211,123 2,139,200 30.0 224 7,477 6,822 -5,928 -1,773 -1,801 211,090 2,139,167 29.0 223 7,572 6,905 -6,011 -1,805 -1,834 211,058 2,139,134 29.7 223 7,667 6,987 -6,093 -1,838 -1,869 211,025 2,139,099 30.3 221 7,761 7,069 -6,175 -1,870 -1,903 210,993 2,139,065 29.3 222 7,856 7,152 -6,258 -1,901 -1,936 210,962 2,139,032 28.1 221 7,951 7,237 -6,343 -1,931 -1,968 210,932 2,139,000 26.9 222 8,046 7,322 -6,428 -1,960 -1,999 210,903 2,138,969 25.7 222 8,140 7,407 -6,513 -1,988 -2,029 210,875 2,138,939 25.7 221 8,203 7,464 -6,570 -2,005 -2,049 210,858 2,138,919 24.7 220 8,266 7,521 -6,627 -2,022 -2,068 .41 2,138,900 23.2 219 . 8,329 7,579 -6,685 -2,038 -2,087 ,825 2,138,881 23.1 220 8,393 7,638 -6,744 -2,055 -2,106 210,808 2,138,862 23.8 220 8,456 7,696 -6,802 -2,072 -2,125 210,791 2,138,843 22.9 221 8,582 7,813 -6,919 -2,103 -2,159 210,760 2,138,809 20.6 220 8,708 7,931 -7,037 -2,131 -2,191 210,732 2,138,777 18.9 221 8,834 8,051 -7,157 -2,158 -2,221 210,705 2,138,747 18.0 221 8,960 8,171 -7,277 - 2,183 -2,249 210,680 2,138,719 16.8 220 9,087 8,293 -7,399 -2,206 -2,275 210,657 2,138,693 15.2 220 9,213 8,415 -7,521 -2,228 -2,300 210,635 2,138,668 14.7 219 9,339 8,537 -7,643 -2,248 -2,324 210,615 2,138,644 14.2 219 9,465 8,659 -7,765 -2,267 -2,347 210,596 2,138,621 13.5 219 9,591 8,782 -7,888 -2,285 -2,368 210,578 2,138,600 12.3 218 9,718 8,906 -8,012 -2,302 -2,389 210,561 2,138,579 12.2 218 9,844 9,029 -8,135 -2,319 -2,410 210,544 2,138,558 11.7 217 9,970 9,153 -8,259 -2,335 -2,429 210,528 2,138,539 11.4 218 10,033 9,215 -8,321 -2,342 -2,438 210,521 2,138,530 10.6 218 10,100 9,280 -8,386 -2,350 -2,448 210,513 2,138,520 10.6 218 8/10/2004 From To Hours Remarks 0:00 5:00 5 Finished connecting the camp water and electric lines. Started filling the water storage tanks. Started driving the 16" by 0.625" wall conductor pipe. After driving 15' of pipe, the crane slacked off causing the hammer to strike the 5:00 6:30 1.5 conductor at an angle crushing the top of the conductor and damaging the hammer guides. 6:30 9:30 3 Repaired the hammer and cut off the deformed part of the conductor. Rigged back up to drive pipe. 9:30 10:00 0.5 Drove pipe to a blowcount of 50 blows per foot to 20' of penetration when the top of the conductor mushroomed. 10:00 10:30 0.5 Layed down the hammer and cut off the bad section of pipe. Picked the hammer back up. 10:30 16:00 5.5 Drove, welded, and drove (2) joints of 16" 0.625" wall conductor pipe to 59.5' below ground level with 80 blows per foot. Layed down the hammer and rigged down and moved out the crane. Rough cut the conductor and installed the baseplate. Final cut the 16:00 21:30 5.5 casing 61.5 inches below ground level and installed the weld on adapter. Installed two 4" nipples in the conductor. .:30 23:00 1.5 Final grade the drill site and leveled the same with sand. Began rough leveling at 18:00. :00 0:00 1 Begin rigging up to set felt and herculite. 8/11/2004 From To Hours Remarks 0:00 4:30 4.5 Lay felt and Herculite. 4:30 8:00 3.5 Secured the Herculite parking areas with gravel. Poured 6 yards of concrete in the cellar. 8:00 20:00 12 Set the rig mats, substructure, draw works, mud pumps, mud pits, generator. 20:00 0:00 4 Peak crew staging misc. non-rig components for rig move. 8/12/2004 From To Hours Remarks 0:00 6:00 6 Turnkey mob operations suspended. Moved in and assembled the derrick. Set the derrick on the substructure. Strung up the blocks. Finished spotting the rig equipment .00 22:00 16 while working on the derrick. 2:00 23:00 1 Raised and secured derrick. 23:00 0:00 1 Continued rigging up lines, hoses, hand rails, stairs. 8/13/2004 From To Hours Remarks Rig up tuggers; Install stairs to pits; set gas buster; unbridle and hang bridle line; move service loops; install standpipe valves; extend 0:00 12:00 12 Canrig grasshopper and wire up Canrig; P/U top drive and hang in derrick. Continued to rig up top drive;Dress out shakers and install screens;spot cuttings tanks; RIU Gaitronics; hang tongs; N/U diverter; set 12:00 0:00 12 catwalk; build berms; dress board; build walkways. Red-02 morning report summaryßFE162842 . page 1 CONFIDENTIAL: last revised 11/10/2004 8/14/2004 1-------- Remarks From To Hours 0:00 3:00 3 Finish making up diverter line. Work on berms. 3:00 4:00 1 Add water to pit~; test diverter. The test was witnessed by Mr. Lou Grimaldi with the AOGCC. 4:00 5:30 1.5 Installed the bails and 4" elevators. Rigged up the Hawkjaws and began mixing spud mud. 5:30 12:00 6.5 Picked up and stood back 120 joints of 4" drill pipe while mixing spud mud and rigging up the vacuum system. 12:00 18:00 6 Finished PU 4" DP. Picked up the BHA. Cont mixing mud. 18:00 18:30 0.5 Spud meeting and safety meeting wlall on location. 18:30 19:00 0.5 Check out circulation, pumps, pits, top drive, flowline, shakers; look for any leaks. Clean out conductor down to 75.5'. Torque increased to 3500, string began bouncing and grabbing; attempt to work down several times 19:00 19:45 0.75 with no improvement in conditions. ~45 20:00 0.25 Discuss circumstances with Mr. Harness. Order out tools from BOT. :00 20:30 0.5 Make another attempt to work through; same results. 20:30 21:00 0.5 Circ and condition mud 21:00 21:30 0.5 Prep to rack 9.625 casing. 21:30 22:30 1 Prep to pick up tools as soon as they arrive; Stand back DC; PU 5" HW stand, LD single; PU single of 4" & XO 22:30 23:00 0.5 WOT 23:00 0:00 1 Rack 9 5/8 casing 8/15/2004 From To Hours Remarks 0:00 1:30 1.5 WOT; load 9 5/8 csg on pipe rack and strap 1:30 2:00 0.5 Made up 8112 bit and sub 2:00 2:30 0.5 RIH and drill from 75 to 92'. POH. PU the tapered string mill and MU the 8112 bit; work mill through tight spot; rework mill thru back and forth 8 times rotating 70 rpm; .30 4:30 2 torque =1500 max. down to 750. :30 5:30 1 POH. LD mill and bit. :30 7:00 1.5 PU DC and 12 1/4 bit; RIH. Bit tagged up at 75 feet. Would not work through. 7:00 7:30 0.5 Stand back collars and bit. 7:30 10:00 2.5 PU tapered string mill and mill on casing at 75'. 10:00 10:30 0.5 PU drlg assembly again; could not get by 75 feet. Stand back in derrick. 10:30 12:00 1.5 LD string mill; PU flat bottom mill. 12:00 16:30 4.5 Mill wlflat bottom mill f/72' to 76'. Work through shoe several tim'es; rotate works only. Will not go thru wlo rotating. 16:30 17:30 1 POH. LD mill.PU 12.25" bit, try to get thru shoe; no go. POH 17:30 19:00 1.5 PU 13" tapered mill. No Go thru CIW well head adaptor. LD same. Smallest ID on wellhead is 12.312". Red-02 mörning report summary_AFE162842 page 2 CONFIDENTIAL: last revised 11/10/2004 PU 12.25" bit and 8" dc's. RIH Rotate and work bit and stab thru conductor shoe; Drill the stand down. PU the bit and stab back into the 19:00 21:00 2 conductor for a connection. Rotate and work; bit temporarily stuck; make conn. Work back thru; looked a little better. 21:00 22:00 1 Drill the next stand down very cautiously; make connection at 156'. The upper stab came up inside the shoe pretty good. 22:00 0:00 2 Drill from 156 to 246 by midnight. Pumps at 114 and RPM at 110. -- 8/16/2004 From To Hours Remarks 0:00 17:00 17 Drilled a 12-1/4" hole from 246' to 1530'. TPIG = 1284 feet APIG = 75.5 feet 17:00 18:00 1 Circulated and conditioned the hole. 18:00 0:00 6 Pumped out of the hole to 246'. Tripped back in the hole. Worked tight hole f/380' to 250' on the way up. Reamed thru going down. .2004 From To Hours Remarks 0:00 1:00 1 Circulated a bottoms up then circulated out a éarbide lag. Lag came back 3 barrels late. 1:00 3:00 2 Tripped out of the hole to the 12-1/4" bottom hole assembly, no tight spots. 3:00 4:00 1 Layed down the 12-1/4" bottom hole assembly and cleared the floor of the handling tools. 4:00 5:30 1.5 Rigged up to the casing crew and held pre job safety meeting. 5:30 9:30 4 Ran (37) joints of 9-5/8", 40 ppf, L-80, BTC surface casing to total depth at 1530" had to wash 4' of soft fill. 9:30 10:00 0.5 Circulated a bottoms up with no change in cuttings amount. Layed down (1) joint of 9-5/8" casing and picked .up the casing hange~ joint. Landed the casing with 50,000 Ibs on the hanger. The 10:00 10:30 0.5 casing shoe was set at 1522' MD RKB with the float shoe at 1477' MD RKB. 10:30 11:00 0.5 Installed the cement head and rigged up the cementing lines and floor manifold. Held a pre job safety meeting. Broke circulation with Schlumberger and tested the lines to 4000 psi. Cemented the 9-5/8" surface casing as follows: 3 bbls of water, 25 bbls of 10.5 ppg Mudpush II, 225 sacks (78 bbls) of Class 'G' lead cement with 1.5% D-79, 1 % S- 02, and 0.2% D-46 mixed at 12.8 ppg with a yield of 1.97 ft3 per sack followed by 190 sacks (40 bbls) of Class 'G' tail cement with 0.3% . D-65, 1.5% S-02, and 0.2% D-46 mixed at 15.8 ppg with a yield of 1.17 ft3 per sack. Kicked out the plug with 5 bbls of water and displaced the cement with 108 bbls of 9.0 ppg mud with the rig pumps. Bumped the plug, the cement was in place at 1255 hrs on 11:00 13:00 2 8/17/04. Circulated 35 bbls of cement to surface. 13:00 13:30 0.5 Tested the casing to 3500 psi for 30 minutes on a chart. Checked the floats; floats held. 13:30 15:00 1.5 RD cement head/lines; LD landing JT; clean and flush diverter 15:00 16:30 1.5 RU & run Gyro Surve}'; RIH to 1439'; .2 degrees West; RD gyro 16:30 20:30 4 ND diverter and starting head 20:30 21:30 1 OrienUinstall MB-S wellhead; test to 5000 psi for 15 minutes -- 21:30 0:00 2.5 Set choke house; NU BOP's. 8/18/2004 Red-02 morning report summary_AFE162842 page 3 CONFIDENTIAL: last revised 11/10/2004 From To Hours Remarks . 0:00 8:00 8 Finish making up stack, hook up hydraulic lines, hcr,kill line, lines to choke house,gas buster, flow line, remove lower mud saver on TO. 8:00 9:30 1.5 Rig up to test 9:30 12:30 3 Test BOP and Choke manifold w/ state man. 200 low/3500 High 12:30 14:00 1.5 HawkJaw failure; take pictures and rig down Hawkjaw. 14:00 15:30 1.5 RD 4X7 Test joint; PU 3 1/2 Test joint. Test upper rams 200/3500; Pull test plug and LD 3 1/2 test joint; set wear ring. 15:30 16:00 0.5 Service rig; top drive 16:00 21:00 5 Pick up BHA; break sub off one MWD and LD MWD; PU New MWD; Shallow test tools; RIH to 1469' and tag cement. 21:00 22:00 1 Drl FC and shoe track and 20 feet to 1550'. FC tagged up at 1474 and the shoe was at 1517'. 22:00 23:30 1.5 CBU; rig up Schlumberger, hold PJSM, do leakoff test. 23:30 0:00 0.5 Drl from 1550 to 1574'. =_2004 '. From To Hours Remarks Drilling 8-1/2" OH from 1574 to 1953'. Drill/slide to build angle and direction to 3000'. Drill ahead rotating as much as possible 0:00 0:00 24 maintaining angle and direction to 3500'. TPIG = 1926 8/20/2004 From To Hours Remarks 0:00 13:30 13.5 Drilled 81/2 directional hole to 4505', CBU; Pump carbide lag for hole gauge; decided to drill deeper for better shoe placement do to Mud logger informed the DSMs that coal 13:30 15:00 1.5 and coal gas was observed at 4505-4508 after CBU. 15:00 15:30 0.5 Drl from 4508 to 4550' after confirming depth and geology with Rob Stinson. 15:30 16:30 1 Circulated hole clean - no coal found ok for shoe placement & TO 8-1/2" hole section @ 4550' Observe hole for flow, start trip out of hole. Tight hole 4140', work through OK to 4076, pull 35K over. Screw in and try to pump out.- No- .6:30 21:30 5 go - backream from 4076 to 3600'; try POH, OK; continue POH slick until the Ghost reamer was in the shoe. 1:30 23:00 1.5 RIH f/2425 to 4550; no tight spots going in the hole. 23:00 0:00 1 Circulated High weight/High Visc sweep; brought some cuttings up. 8/21/2004 From To Hours Remarks 0:00 0:30 0.5 Circ hole. Ck for flow. -- 0:30 1:00 0.5 Pull 6 stands - ok - pump dry job. 1:00 4:00 3 POH w/ no problems. No tight spots. 4:00 6:30 2.5 LD BHA. Red-02 morning report summary_AFE162842 page 4 CONFIDENTIAL: last revised 11/10/2004 6:30 7:00 0.5 Pull wear ring . 7:00 8:30 1.5 RU Weatherford and prep the rig floor. Hold safety meeting. 8:30 14:30 6 RIH wI?" 26# L-80 Mod BTC casing. 14:30 15:30 1 Circ last two joints down, tag bottom, and circ ~ottoms up. 15:30 16:30 1 LID two joints; PU hanger, hanger joint, landiFlg joint and land casing.. 16:30 17:30 1 Circhole clean @ 80 spm w/5" liners; hold PJSM wlSchlumberger and crews. Pressure test lines to 4000psi; pump cement as follows: 25 BBls 10.6 ppg Mud Push; 45 BBls lead G slurry w/12.8ppg; 18 BBLs tail slurry w/15.8 ppg; 3 BBls of water; 168 BBls of 9.2 ppg mud. The lead slurry had .2% 0046, 2 % 0079, .8% 0167 and. 75% S002. The 17:30 19:00 1.5 tail slurry had .4% d167, .3% 0065 & .2% 0046. 19:00 19:30 0.5 Maintai_n 3500 PSI pressure on casing with Schlumberger after bumping the plug for 30 minutes. (CIP @18:55) --19:30 20:30 1 Rig down cement equipment and remainder of casing equipment. 20:30 22:00 1.5 P/U 7" packoff; set, test to 5000 for 15 min; LID tools. 22:00 22:30 0.5 cIa bottom rams to 4". ~:30 0:00 1.5 PU test joint; test BOP's to 250/3500 PSI. 2/2004 From To Hours Remarks 0:00 3:00 3 Test BOP's to 250/3500. Test 31/2" and 4" @ 250/3500. LD Test plug and joint. Install wear ring. 3:00 6:00 3 Hold PJSM and PU BHA. 6:00 6:30 0.5 PU 6 Stds of 4" hwdp and Ghost reamer. 6:30 10:30 4 PU 4" S-135 14# DP w/3 1/2 HT 38 conn -- 10:30 11:00 0.5 Service rig 11:00 12:00 1 PU 4" S-135 14# DP w/3 1/2 HT 38 conn 12:00 13:30 1.5 Drill cmt, FC, and shoe plus 20' of new hole. Shoe drilled at 4536'. -- 13:30 14:00 0.5 Circ hole clean; Mud weight 9.2 in and out. 14:00 15:00 1 Replace Koomey hose to HCR; clean up cellar area. 15:00 16:00 1 Perform leak off test; 12.49 ppg EMW. 16:00 0:00 8 Drill 6-1/8" dir. Hole from 4570' to 5082 at midnight. .2004 From To Hours Remarks 0:00 13:00 13 Drill 6-1/8" dir. Hole from 5082' to 6028'. CBU for a 6 stand short trip. 13:00 14:00 1 Short trip the Ghost reamer into the shoe, the bit to 5366'. Just a couple of 25k over pulls last two stds o~ Short trip. 14:00 16:00 2 Drill from 6-1/8' dir hole 6028' to 6123'. Had slight flow @ conn? DR110' for working room. CBU, Ck again. No flow. Resume drilling. - 16:00 0:00 8 Drill 6-1/8" dir. f/6123 to 6786' at midnight. 8/24/2004 Red-02 morning report summary_AFE162842 page 5 CONFIDENTIAL: last revised 11/10/2004 From To Hours Remarks 0:00 12:30 12.5 Drill 6 1/8" Dir Hole from 6786' to 7637' 12:30 13:00 0.5 Circulate Btms/up & Monitor well 10 Min (ok) Perform ShorUWiper Trip #2 15 Stands to 6217' Ghost reamer tJ 5298' - Had over pulls 15-40k over 6798' But did not slow us dn, unable to pass 6786' - Bk/ream from 6786' to 6781' - Stright Pull to 6217' w/ 3 over pulls last 2 stands & RIH wI no problems & 13:00 16:00 3 Safety/Wash f~om 7612' to TD @ 7637' 16:00 0:00 8 Drill 6 1/8" Dir Hole from 7637' to 8269' & start our drop 8/25/2004 From To Hours Remarks 0:00 0:00 24 Drill 6 1/8" Dir Hole from 8269' to 9585' &2004 From To Hours Remarks 0:00 20:00 20 Drill 6 1/8" Dir Hole from 9585' to 10,100 20:00 22:00 2 Circulate & Condition Mud & Hole - Pump Nutplug Sweep around - Strong Returns - Sweep Indicates 3 1/2% Wsh/out Factor 22:00 0:00 2 POOH f/ Short/Wiper Trip to Shoe - 22 Stands/out - No Tight Spots - Smooth --. 8/27/2004 From To Hours Remarks . 0:00 1:30 1.5 POOH to Shoe @ 4538' wI ghost Reamer - No Tight Spots - Smooth RIH & SatJdn @ 9360' - Unable to Pass - Brk/circ & Rotate thru to 9400' - S/dn Pump - P/u thru & Pass - OK - Cleaned/up - RIH & Safety 1:30 5:00 3.5 Wsh to Btm - Tag Fill @ 10,078' (22 ft fill) - wash to Btm 10,100' Circulate & Condition & Reciprocate Pipe - 370 Units Max @ Btms/up - Monitor Well - Screen/Dn Shakers to handle 315 GPM & build .5:00 9:00 4 Mud Wt frm/9.4 PPG to 9.6 PPG - Pump Dry-Job POOH for Logs - Tight Spot @ 4542' to 4550' (shoe depth) - No trouble wI ghost reamer, but Motor & or Bit hung/up - SatJdn - Orient & 9:00 18:00 9 Pull thru - Cleaned/up - Ly/dn BHI directional BHA - Bit in gauge & in good shape - 2 nozzles plugged (probably when satJdn @ shoe) 18:00 19:00 1 Clean Floor & Prep for E-Line Rig/up 19:00 20:00 1 Rlu SWS & hold PJSM Pu & RIH wI PEX/CMR tools to 9950' - Sticky Spot @ 9470' - P/u & Go Thru - Log/up from 9950' - Hunglup @ 9600' - Attempt drop/dn - NO Go - Pull 3500K over, set brake & came free in 10 sec - Log/frm/ 9500' to surface - w/ PEX - Unable to Log CMR, due to uneven 20:00 23:45 3.75 drag. 23:45 0:00 0.25 Ly/dn PEX/CMR Tools 8/28/2004 Red-02 morning report summary_AFE162842 page 6 CONFIDENTIAL: last revised 11/10/2004 From To Hours Remarks Finish Ly/dn PEXlCMR tools - P/u DSI/FMI tools - RIH & Set/dn @ 6840' (@ one of the two worst coals in well) - Unable to Pass - POOH 0:00 3:30 3.5 & Rldn SWS Wireline 3:30 5:00 1.5 Call Anch & decide to make Wiper Run - M/u Clean/out Wiper Ass'bly 5:00 8:00 3 RIH wI 4" DP to Shoe (4538') - Fill Pipe- Circulatelout Air - Monitor Well & Set/up to read losses while static 8:00 10:00 2 Slip & Cut 100 Feet Drilling Line - Adjust Brakes - Monitor Well (1/2 Bbls in 2 Hrs = 1/4 BPH) RIH - Took Intermittent Wt (15k - 40K) from 8108' to 8300' - P/u & Pass thru X 3 - Possible Float Failure @ 8200' - No Loss of mud - RIH 10:00 14:30 4.5 to Btm (10100') Wsh 15' of Fill Circulate & Condition Mud & Reciprocate Pipe - Trip Gas Hi of 530 Units - Weight/up Mud from 9.6 PPG to 9.8 PPG - Treat wi 14:30 20:00 5.5 Asphaltines 20:00 0:00 4 POOH - Completely Smooth - Check fl Flow @ Shoe - OK .2004 To Hours Remarks From 0:00 1:30 1.5 Finish POOH wI Cleanlout Ass'bly 1:30 2:30 1 PJSM & Rlu SWS wi DSI/FMI Tools RIH - Bobble @ 6260' - RIH - P/u @ 6485' to check tension - Sticky @ 6450' - Unable to drop/dn - P/u & Pull Free - Sticky @ 6400' - 2:30 6:30 4 POOH & Drop FMI - RIH wi DSI - Set/dn @ 9225' - Attempts to break thru X 4 - Unable to Pass - Log lup from 9185' 6:30 7:00 0.5 Rig/dn SWS Wireline 7:00 7:30 0.5 Brk/out DC, Stab, & Bit Sub - Ly/dn Same 7:30 9:00 1.5 P/u Weatherford Tools & Rlu Same - Prep to run 3 1/2" Liner 9:00 10:00 1 PJSM - M/u Shoe, Float Collar, Landing collar & Test Floats - OK 10:00 17:15 7.25 P/Ü3 1/2" . Liner & Rabbit & RIH wi Same to Shoe (4500') 17:15 18:15 1 Circulate/up 49 Units of Gas - Up Wt = 60K & Dn Wt = 56K - Monitor Well -- 18:15 20:00 1.75 P/u 3 1/2" Liner & Rabbit & RIH wi Same to 5800' Change Elevators, P/u BOT Liner Pkr Ass'bly, run 2 Stds DP, M/u Cement Head/on Double of 4" DP & Std/bk - Up Wt = 72K & Dn Wt = 20:00 23:00 3 60K .3:00 23:30 0.5 RIH w 4" DP to 7041' 3:30 0:00 0.5 Circulate/up 56 Units gas - Up Wt = 84K & Dn Wt = 70K 8/30/2004 From To Hours Remarks -- Finish Circulate/up 56 Units Gas from 7041'· Monitor Well 0:00 1:00 1 1:00 2:30 1.5 RIH w/3 1/2" Liner on 4" DP - Set/dn @ 9226' ~. 2:30 6:00 3.5 Attempt to work/thru & Circulate - 147 Units of Gas - Re-attempt Work thru - Unable to pass ~-- 6:00 8:30 2.5 Ly/dn Single 4" DP - Pull 33 Stands Same 8:30 9:30 1 Brk/out & Ly/dn Cement Head - M/u Single & POOH wI 4" DP 9:30 10:00 0.5 Ly/dn BOT ZXP Liner Packer Ass'bly Red-02 morning report summary-.AFE162842 page 7 CONFIDENTIAL: last revised 11/10/2004 10:00 10:30 0.5 Rlu Wthfd Tongs 10:30 11:00 0.5 Brk/out BOT Tools & Lyldn Same 11:00 21:00 10 POOH w/31/2" Liner & Ly/dn Same - No damaged connections & all centralizers, & stop rings recovered - Replaced O-ring Seals 21:00 21:45 0.75 Clean & Clear floor & Lyldn Wthfd Tongs 21:45 22:30 0.75 P/up Hawk-Jaw & Test Run 22:30 0:00 1.5 Riglup & Pull Wear Ring & Install Test Plug - Test BOPE - Test Annular, Outside Kill, Hyd IBOP & Choke Manifold 250/3500 Psi OK 8/31/2004 From To Hours Remarks Cont Pressure test of BOP equipment on 4" & 31/2" (Note had some trouble with a valve Leaking on our pressure test manifold - Pull ~.oo 4:30 4.5 test plug & set wear ring :30 6:30 2 Make up clean out assembly - Note moved Ghost Reamer down to within 500' of bit so that it would pass problem area RIH (Fill pipe at shoe and 7,000') - Took weight at 9,220 (25k) - Kelly up and Ream from 9,220 to 9,310 - Reamed this area several 6:30 11:30 5 times. RIH to a bit depth of 9,700 Ghost Reamer dèpth 9,220 Reamed Ghost reamer from 9,220 to 9,300 several times did not see much of 11:30 14:30 3 anything - Cont RIH washed last 30' to btm (+1- 14' offill that we had to rotate threw to get it cleaned out) Cir well clean still had a good deal of sand & coal chips across shakers - Talked with Anchorage Engineering and agreed to raise mud weight to 10ppg - Raised mud weight to 10ppg - with new mud weight in and out we had a total of 5 btms up still some sand and coal at 14:30 19:00 4.5 shaker Flow Check well- Trip for 31/2" liner the first 5stnds pulled with 5 to 12k interriiittent overpull (no swabbing) - After 5stnds pulled cleaner 19:00 0:00 5 (Ghost reamer above problem area) - Cont POH did not see anything when bit came by the 9,200 area - cont POH clean -- 9/1/2004 From To Hours Remarks .00 2:00 2 Continue POOH & Brk/dn Clean/out Ass'bly :00 3:00 1 Rig/up to Re-Run 3 1/2" Liner 3:00 11:30 8.5 PJSM - P/u Shoe, Float Collar, Landing Collar - Test Float - OK - P/u & RIH w/3 1/2" Liner - Brk/Circ @ Shoe (4538') - RIH 11:30 12:30 1 Plu & M/u BOT Hanger & ZXP Packer Ass:bly 12:30 13:00 0.5 Rigldn Wthfrd Tongs" & Rlu to run Liner On 4" DP RIH w/3 1/2" Liner on 4" DP - Brk/Circ @ 7040' - RIH - Saw Absolutely Nothing @ 9226' Dept - All Smooth - RIH to 10,040 - P/u T/drive & Wash to Btm @ 10,100' (wash very slowly w/ small bites - never really saw the fill) - Circulate & Reciprocate Btms/up - 115 Units of 13:00 19:30 6.5 Gas - P/u Cement Head & Continue Circulate & Reciprocate 19:30 20:30 1 PJSM & Riç¡/up Floor for Cement Job Red-02 morning report summary_AFE162842 page 8 CONFIDENTIAL: last revised 11/10/2004 Pump 5 Bbls CW-100 Pre-flush w/ OS, Press Tst Lines 4000 Psi ~ OK - Pump 15 Bbls CW-100 Pre-flush wI OS, Pump 30 Bbls Mudpush XLO wI Rig Pump, Batch/mix 171 Bbls 0962 LiteCRETE wI .6%0046, .3%0167, 1.0%0065, & .060%B155 to a Slurry Wt of 12 PPG - Sldn, Wash lines &Drop Dart - Displace wI 95 Bbls KCL wI OS - Plug Bumped 1.3 Bbls early - PresslTest to 3500 Psi - Good Test - Chk floats & got 1 1/4 Bbls/Bk - Floats Held - CIP = 22:38 Hrs - Reciprocated pipe throughout cmt job - Rotate/off Liner, Plu & Expose Setting Dogs, Set Liner Top ZXP Pkr - Apply 500 Psi to DP, Plu & See Press/drop - Pressure Test Liner Top Pkr to 2000 Psi wI Dowell f/5 Min - 20:30 23:30 3 Good test - Liner Cemented in Place wI Btm Shoe 10,095' (5' off/TD, Top/Landing Collar 1030.80', & Top/Liner 4294.67' 23:30 0:00 0.5 Displace Annulus wI 6% KCL & Rldn OS ~- 9/2/2004 From To Hours Remarks 0:00 1:30 1.5 Finish displace annulus wI 6% KCL - No Cement Returns .:30 2:00 0.5 Brk/out XO & Cement Head & Ly/dn same - Clean shakers & trough - Prep to POOH & Ly/dn & Clean DP :00 6:30 4.5 POOH, Clean & Ly/dn 4" DP ---= 6:30 7:00 0.5 Brk/out& Ly/dn BOT C-2 Liner Setting Ass'bly' 7:00 8:00 1 Plu & Rlu to Run BOT Polish Mill Ass'bly 8:00 10:00 2 RIH wI Mill Ass'bly on 4" DP from derrick 10:00 10:30 0.5 Polish BOT Seal Bore & Liner top @ 4294' & Circulate Btms/up 10:30 18:00 7.5 POOH, Clean & Ly/dn 4" DP 18:00 20:30 2.5 Lay Down Baker Running tool - Pull Wear Bushing 20:30 22:00 1.5 Pressure test Casing to 3,500psi for 30min - Rig up Weatherford 22:00 0:00 2 Run Seal assembly on 3 1/2" 9.2# 1-80 IBT' Mòd rubing .... 9/3/2004 From To Hours Remarks 0:00 5:30 5.5 Ru~ 3.5" Tubing W/controlline Putting bands 2 EA per joint ----:' .30 7:30 2 Stab in with seal assembly, Space out, PU hanger connect chemical injection line. :30 8:30 1 Pump corrosion inhibitor and 5 BBL of diesel :30 9:00 0.5 Land hanger and RI LOS 9:00 9:30 0.5 Test tubing to 1500 PSI 9:30 10:00 0.5 Back out landing joint and install 3" CIW Type H BPV 10:00 16:45 6.75 NO BOP, LD Mouse hole, Pull cat walk, remove choke house and lines remove lines from Top Drive, disconnect power unit Install tree, test hanger and seal flange to 5000 PSI held for 20 minutes monitoring chemical injection port. Removed BPV and installed 16:45 20:00 3.25 TWC and pressured tree up to 5000 PSI mo~itoring chemical injection port. Pull TWC and secured well. Release rig to testing ~-, 20:00 0:00 4 Rig down TDS and lay down, Layout felt and liner for production testing lash up, spot test equipment -- 9/4/2004 Red-02 morning report summary_AFE162842 page 9 CONFIDENTIAL: last revised 11/10/2004 From To Hours Remarks 0:00 1:30 1.5 Lay down TDS RU Schlumberger E-line RIH with CBL. With 1500 PSI on well bore log up from 10030' ELM to 5100' drop back down and run a second 1:30 7:30 6 pass from 6400' to 5100' 7:30 9:00 1.5 Lay down and move gas buster, move pits away from sub base Move in spot coil tubing equipment, start rig up, complete production testing RU and test lines to 250 PSI low and 3500 PSI high down 9:00 19:15 10.25 stream of manifold and 4500 PSI up stream of manifold. Test CT BOP to 250 PSI low and 4500 PSI high RIH with coil, lined up for displacement going to RFR tank. Strap on tank prior to starting job shows 3 BBLS. Start to chill down N2 unit, at 7600' in hole start to pump N2 at 1000 CFM rate continuing to RIH at 90 FPM. Tagged BTM at 10027' CTM, picked up to 10020' and increased rate to 1300 CFM, pumped N2 until had N2 at surface, then diverted flow through test separator. Continued to flow for an additional 15 minutes, until a strap of 129 BBLS was recorded in RFR, started pulling out of hole. 87 BBL 3.5 tubing volume + 34 BBLS .9:15 0:00 4.75 CT volume total 121 BBL had a total of 126 BBL of fluid returned. (Additional fluid from previous liquid level in test separator.) 9/5/2004 From To Hours Remarks 0:00 1:00 1 POOH leaving 2000 PSI of N2 in well bore 1:00 1:30 0.5 SI Well and blow down coil 1:30 5:30 4 NO coil unit 5:30 7:00 1.5 E-line arrive spot truck, layout lubricator and build head 7:00 7:30 0.5 Safety meeting prior to arming guns 7:30 9:30 2 Make up guns and stab up lubricator 9:30 10:30 1 Pressure test lubricator using methanol 250 low and 4000 high RIH with gun run #1, had 2000 PSI on tubing bled pressure off to 1700 PSI, perforate from 9298' - 9324' (26') using 2 1/4" HSD 2306 Power Jet 6 SPF, 60 Degree Phasing, used Schlumberger Log, Array induction/ Litho Density/ Compensated Neutron/ Compressional .0:30 12:00 1.5 DT, dated 8-27-04 to correlate, fired guns at 11 :22 HRS, POOH had no significant pressure change. 2:00 12:30 0.5 Remove spent guns all shots fired, armed another 20' section of guns, stab up lubricator RIH with gun run #2, had 1700 PSI on tubing, perforate from 9324' - 9344' (20') using 2 1/4" HSD 2306 Power Jet 6 SPF, 60 Degree Phasing, used Schlumberger Log, Array induction/ Litho Densityl Compensated Neutron/ Compressional DT, dated 8-27-04 to correlate, 12:30 14:30 2 fired guns at 13:27 HRS, POOH, had steady pressure increase of3 PSI per minute. Remove spent guns all shots fired, Schlumberger rig down equipment, monitor tubing pressure from time of perforating to 15:30 HRS 14:30 15:30 1 had pressure build up to 2002 PSI 15:30 16:30 1 Schlumberger complete RD, start to flow well to flare had draw down to 1000 PSI in 45 minutes on a 16/64 choke 16:30 17:30 1 Closed choke to 4/64 pressure down to 864 PSI Switched control over to choke skid choke from line heater choke, and set at 13/64 progressing down to a 7/64" choke and had pressure 17:30 18:00 0.5 at 560 PSI and a 230 CFM rate, very little LEL 18:00 20:C!º- 2 Opened choke!o 10/64 pressure fell to 518 PSI and maintained pressure with 195 MCF rate 20:00 21:00 1 Continuinq to flow well on 10 164' choke RU E-Line to run a pressure qradient loa Red-02 morning report summary_AFE162842 page 10 CONFIDENTIAL: last revised 11/10/2004 RIH with pressure gradient log with well flowing, found fluid level at 3170' continued to 9400' and logged up. POOH. SI well at 22:35 21:00 23:30 2.5 HRS, with 512 PSI, in an attempt to build pressure and push back fluid. Found fluid level at 2765' on the trip out of hole 23:30 0:00 0.5 Blow down SWS lubricator and rig down sam~ . -- 9/6/2004 From To Hours Remarks 0:00 1:30 1.5 RD Schlumberger E-Line and stage equipment for easy rig up. Pollard RU and run Fluid Sample Bailer to recover fluid from 9298' to 9344'. Schlumberger transferring N2 from one transport vessel to 1:30 3:00 1.5 another 3:00 5:00 2 Pollard RIH with sample bailer and pull sample from 9310' 5:00 6:00 1 OOH with very little sample and oily, spring on bottom of bailer very tight loosen same -- 6:00 7:00 1 RIH with same bailer to 9298-9344, POOH seat on bailer not holding and bailer empty, outside of bailer oily. -c .:00 RU Schlumberger RIH to TO and log up with pressure gradient static survey appeared to have a .44 fluid gradient., POOH and stand 12:00 5 back equipment 12:00 13:00 1 Ru slickline with a different 2" bailer (2" BB with Spring Bailer) to 5000', POOH, recovered 1/2 cup of oil and grease Talk with town and decided to make one more attempt to recover sample, greased up ball with heavy grease prior to running, run in to 13:00 15:00 2 5000' work bailer. POOH, Recovered full bailer load of water RD slickline. 15:00 15:45 0.75 Held PJSM prior to bull heading N2, Pressure test lines to 5000 PSI, and start to cool down unit Start to pump N2 at 500 CFM rate with a starting pressure of 780 PSI., Pumped approximately 50 gallons N2 and raised rate to 1000 15:45 17:15 1.5 CFM, pumped a total of 1240 gallons of N2 with a final pressure of 4050 PSI ~ SO at 17: 15 17:15 19:15 2 RD N2, and RU E-line to set Halliburton Fast-Drill. PJSM prior to running plug, Fast-Drill does not utilize safe system and requires radio silence. PU plug and stab lubricator, test to 4000 19:15 20:45 1.5 PSI methanol. RIH with fast drill and correlate to SCMT of 9-4-04, set top of plug at 9250', ( was able to correlate with marker joints). CCl 117" above top of plug, set CCl at 9240.2 at time of setting. Pulled rigger at 21 :07 HRS, good indication of firing, POOH logging to 9196 logged 20:45 22:30 1.75 short joints and set back down on plug at 9240.2. POOH 22:30 23:00 0.5 lé!ly down lubricator and removed GO running tool Bleed 1000 PSI from tubing to verify Fast-Drill plug is holding 2968 PSI to 1968 PSI .3:00 0:00 1 RU to run dump bailer on E-Line 9/7/2004 From To Hours Remarks 0:00 0:30 0.5 Complete mixing cement for dump bailer, Stab up lubricator ancj perform inservice test with N2. RIH tag top of plug PU 2 feet, fire dump bailer and POOH mix second batch of cement and RIH tag top of cement PU 2 feet and fire 0:30 4:30 4 bailer POOH, RD Bailer, EST. TOÇ at 9223 RU to perf, Gun #3, RIH with 2.25"HSD 2306 Power Jet 6 SPF 60 Degree Phasing guns 25' long, using SCMT logs to correlate. Bleed pressure down to 1350 PSI prior to perforating. Perforate from 8063' to 8088', Guns fired at 06:00 Had pressure build up of 4 PSI. 4:30 6:30 2 POOH with no additional pressure increase. Red-02 morning report summary-AFE162842 page 11 CONFIDENTIAL: last revised 11/10/2004 RU to perf, Gun #4, RIH with 2.25"HSD 2306 Power Jet 6 SPF 60 Degree Phasing guns 25' long, using SCMT logs to correlate. Maintain pressure at 1350 PSI prior to perforating. Perforate from 8038' to 8063', Guns fired at 07:42 Had pressure build up of 2 PSI. POOH 6:30 8:30 2 with no additional pressure increase. Monitor tubing pressure for 1 hour with no real pressure increase, Attempt to flow well, drawing pressure down to 1000 PSI was not able 8:30 12:00 3.5 to establish flow, call out additional guns for T-7 perforations. RU to perf, Gun #5, RIH with 2.25"HSD 2306 Power Jet 6 SPF 60 Degree Phasing guns 30' long, using SCMT logs to correlate. Maintain pressure at 1000 PSI prior to perforating. Perforate from 6762' to 6792', Guns fired at 13:45 Had pressure build up of 4 PSI. POOH 12:00 14:30 2.5 with no additional pressure increase. RU to perf, Gun #6, RIH with 2.25"HSD 2306 Power Jet 6 SPF 60 Degree Phasing guns 30' long, using SCMT logs to correlate. Maintain pressure at 1000 PSI prior to perforating. Perforate from 6732' to 6762', Guns fired at 16:15 Had pressure loss of 2 PSI. POOH with no 14:30 17:00 2.5 additional pressure loss. . 17:00 18:00 1 RD Schlumberger and stage equipment at Star Pad. ---;¡8:00 18:30 0.5 Draw well down to 500 PSI and monitored had no pressure build up .8:30 19:30 1 Draw well down to 20 PSI Monitored pressure rose to 25 PSI 9:30 20:30 1 Blowwell down to 0 PSI let vent to tank 0:30 21:30 1 SI and monitored pressure rose to 1 PSI 21:30 0:00 2.5 RD Test equipment and monitor pressure 9/8/2004 From To Hours Remarks 0:00 7:00 7 Rig down rest of Test equipment. Prep for rig move w/Peak crew. LD derrick, spool drlg line, stage Pits at 9 mile along with pumps boiler and generator, ready remainder of rig components for move. Truck Schlumberger silos,cmt equip to NNA; truck Epoch, BHI to NNA. Move test equipment to Star Pad. Support CTO at Star. CIWout 7:00 19:00 12 and lubed valves on Red #1 &2, set BPV in #2 In prep for moving sub base 19:00 0:00 5 Peak crew loading trailers for rig move; CT support; stage excess support equipment for loading. Check pressure on the well at 1600 hrs to be 60 psi; bleed to zero; install BPV. . . Red-02 morning report summary_AFE162842 page 12 CONFIDENTIAL: last revised 11/10/2004 . . FRANK H. MURKOWSKI. GOVERNOR AI,ASIiA OIL AND GAS CONSERVATION COMMISSION Phil Krueger Drilling Manager Unocal PO Box 196247 Anchorage AK 99519 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Red #2 Unocal Permit No: 204-148 Surface Location: 377' FNL, 458' FWL, Sec. 8, T4S, R13W, SM Bottomhole Location: 2846' FNL, 1883' FEL, Sec. 7, T4S, R13W, SM Dear Mr. Krueger: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to w' ss any required test. Contact the Commission's petroleum field inspector at (907) 659-36 (p er). BY ORDER ~THE COMMISSION DATED this~ day of August, 2004 cc: Department ofFish & Game, Habitat Section wlo encl. Department of EnvironmentaJ Conservation w/o encI. · Unocal Corporation . P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCALe Phil Krueger Drilling Manager Friday, August 6, 2004 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: Application for Permit to Drill (Form 10-401) Red #2 - Exploration Well Dear Commissioner Norman, Attached for your approval is an application for permit to drill (Form 10-401) for the Red #2 exploration well. This will be Unoca/'s second exploratory project in the Nikolaevsk / Unit. Excess mud and cuttings will be hauled to the NNA #1 well and disposed into the annulus of that well. A waiver will be requested for wellbore surveys in the 12 ')4" hole section and for using a ../ diverter line smaller than the specified 16" minimum. ~p anned spud date is August 8th , 2004 and the contracted rig will be Nabors Rig 12~ A spacing exception will not be required for this well. If you have any questions ase contact myself at 263-7628 or Mr. Rob Stinson at 263-7804. Sincerely, ;;/frv~ Phil Krueger Drilling Manager "'" ('~ f'''\ l.¡K .,.t 1\ \ \ \~h ~ _ STATE OF ALASKA ALA" OIL AND GAS CONSERVATION COMre,ION PERMIT TO DRILL 20 MC 25.005 / \;Ubi\- ~ /,1/ZOD4 1a. Type of Work: Drill [2] Redrill 0 1b. Current Well Class: Exploratory 0 Development Oil U Multiple Zone U Re-entry 0 Stratigraphic Test 0 Service 0 Development Gas 0 Single Zone 0 2. Operator Name: 5. Bond: Blanket 0 Single Well 0 . 11. Well Name and Number: Union Oil of Californuia (Unocal) Bond No. . U 92 3269 ðßb 6 IC>35(Ç'/) 8:111 Red #2 ./ 3. Address: 6. Proposed Depth: ÁÞ <¡¡.{,....¡ 12. Field/Pool(s): P.O. Box 196247 Anchorage, AK 99519 MD: 10,338' TVD: 9,514' n/a 4a. Location of Well (Governmental Section): 7. Property Designation: ¡f?p(.. ?/fDS/¥ þ~ Surface: 377' FNL, 458' FWL, Section 8 T4S, R13W, SM Nikolaevsk Unit Az;;t... 3~z.z.7 g.~-'i Top of Productive Horizon: 8. Land Use Permit: 13. Approximate S:~ ~ 2699' FNL, 1744' FEL, Section 7 T4S, R13W, SM n/a AUçu 8, 2004 Total Depth: 9. Acres in Property: J>'ð . 14. Distance to Ne~ 2846' FNL, 1883' FEL, Section 7 T4S, R13W, SM ,Q4ð t7;¡' $. i.-<::4- Property: 3398 ft 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x- 212863 , 2140968 " Zone- 4 (Height above GL): 894' MSL feet Within Pool: 3800 ft y- 16. Deviated wells: Kickoff depth: 2000 feet . 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 30 degrees Downhole: 4120 ' Surface: 3168 ~ 18. Casing Program: Specifications Setting Depth Quantity of Cement Size Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) n/a 16" Welded 50' Surf. Surf. 67' 67' n/a 12-1/4" 9-5/8" 40 ppf L-80 BTC 1483' Surf. Surf. 1500' 1500' 669 cu ft 8-1/2" 7" 26 ppf L-80 BTC-mod 4483' Surf. Surf. 4500' 4259' 346 cu ft 6-1/8" 3-1/2" 9.2 ppf L-80 IBTC-mod 10321' Surf. Surf. 10338' 9514' 1064 cu ft 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: . Filing Fee ~ BOP Sketch ~ Drilling Program oJ Time v. Depth Plot U Shallow Hazard Analysis U Property Plat oJ Diverter Sketch 0 Seabed Report 0 Drilling Fluid Program 0 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I herel5ycertify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Philip J. Krueger Title Drilling Manager / Signature ~~~ - Phone (907)-263-7628 Date ðbÞ6d;j I { . , Commission Use Only / . Permit to Drill JI,.. </. API Number: Permit Approval f¡h~/.Þ.Þ I See cover lettef for other Number: 2J)c/-/ . 8 50- 23/- 2C02..5 -Öl::J Date: r o-¡ requirements. Conditions of approval: 'Te.st ßO fG to ·~SOO t?~t'. I ' Sam~'''' Yos 0 No É Moo log re,""" YosgJ No 0 :fJJ)yd"'" ,,' "j ...."res t Yf·1KI No tJ "re"t-~ "1Xe<¡"'''''t ,Yos ¡¡; No 0 Qthe, ~., ~o ~10 ~t L'h cd 'vi'!-~ <edili'vt...- ,¡eo<.t IU lm¿ ~~ IS:'P ~d. ... {.f C ~' ; Cl -€VHC--re tM.C1I jjo~ Sí,.(VveFJ¡ [¡'W . -<..{K..J2 I $ evpyJ,~l/e . ~'/ . BY 0 D R OF .:-.. - , c¡.. APproved:,j.J THE COMMISSION Date: g/i:f. d )UC ~ ' V""~ / --:¡;ubmit i~uPlicate Fo -401 Re p12/2003 - ORIGiNAl. '~I - e Table of Contents 1. 10-401 Permit to Drill 2. Waiver Requests 3. Outline Summary 4. Red #2 Schematic 5. Plat Map 6. Red #2 Directional Plan 7. MASP Cales 8. Casing Design Cales 9. 11" 5M BOP Stack Drawing 10. Cement Program 11. Mud Program e e Waiver Requests Unocal respectfully requests waiver to; (1.) AOGCC regulations 20 AAC 25.035 (c)(1) (A) and (8) WAIVER #1: Unocal requests permission to drill the 12-1/4" surface hole to a depth of +1- /' 1,500' MD I 1,500' TVD with a diverter, fitted with a 12" diverter outlet and line. AOGCC regulations 20 AAC 25.035 (c)(1) (A) and (8) stipulate: (1) the diverter system must consist of a remotely operated pack-off device, a full opening vent line valve, and a diverter vent line with a diameter (A) (B) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraint; and at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; the commission will waive the requirement of this paragraph if the operator demonstrates, based on drilling experience in the near vicinity, that drilling a pilot hole will not be necessary for safety; Red #1 we drilled vertically off of the same pad to a depth of 1,800' MD and encountered no shallow gas. // Unocal has scrutinized the two closest offset wells and recent seismic in an attached shallow hazard analysis and believes that there is little risk of any shallow gas down to well below the planned surface casing depth. These two offset wells are the NFU #11-4 and NFU #41-35. The first seismic amplitudes show up in the 3,000' TVD to 3,700' TVD depth range. WAIVER #2: UnocaJ requests permission to drill the 12 X" surface hole to +1-1,500' without / surveying until after the 95/8" casing is cemented. AOGCC regulation 20 AAC 25.050 (h) stipulates: (h) "Upon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well e e intersection, to comply with spacing requirements, and to ensure protection of correlative rights." Due to plans to drill the 12 %" surface hole vertically to 1 ,500', there is no cost- effective means to survey once each 500' as required in regulation 25.050 (C)(1). Unocal will obtain the required surveys at the first opportunity after cementing the 9 5/8" casing, before drilling the 8 W' hole, to ensure accuracy of the final BHL. e e Outline Summary 1. Move in and rig up Nabors Rig 129 on Red #2. 16" 5/8" W.t. conductor will be driven prior to rig-up and 13 5/8" 5M slip on wellhead adapter will be installed. ---.~- -~\ 2. Nipple up 13 5/8" diverter \A~?>-éÍ;verter line and test. AOGCC to be notified /' prior to test for possible wit~~~~ 3. Mix KCL spud mud. 4. Drill 12 W' surface hole vertically to 1,500' MD I 1,500' TVD. 5. Run and cement 9 5/8" 40# L-80 BTC surface casing to 1,500' MD I 1,500' TVD. /' Pressure test 9 5/8" to 3,500 psi after bumping the plug. 6. Nipple down diverter. 7. Nipple up 11" 5M BOP stack wI 2 7/8" x 5" VBRs on top, blinds in middle ßl'Id 7" pipe rams on bottom. Test BOPs wI AOGCC notification for witness. /' 8. Run gyro. /' 9. After drilling at least 20' of new hole, but no more than 50', perform Leak off Test as per Unocal standard LOT procedure. 10. Drill 8 1'2" directional hole wI KCL mud system to 4,500' MD 14,259' TVD. 11. Run and cement 7" 26# L-80 BTC intermediate casing to 4,500' MD I 4,259' TVD. Pressure test 7" to 3,500 psi after bumping the plug. /' / 12. Change bottom BOP rams to 4" and test. 13. Change over mud to Oil Based Mud before drilling out shoe track. 14. After drilling at least 20' of new hole, but no more than 50', perform Leak off Test // as per Unocal standard LOT procedure. 15. Directionally drill 6 1/8" hole to 10,338' MD I 9,514' TVD. 16. Log 61/8" hole wI PEX, CMR, FMI, Dipole. Pull GR up to surface. ,/ 17. Run and cement 3 1'2" 9.2# L-80 IBTC completion to 10,338' MD I 9,514' TVD. / In-line ZX packer to be set at 4,000' MD and methanol injection mandrel to be run at 2,500' MD 18. Pressure test 31'2" completion to 4,500 psi. 19. Test 7" x 3 1'2" annulus to 1,500 psi. ./ 20. Install BPV. Nipple down 11" BOP stack. e e 21. Nipple up 3 1/8" production tree and test. 22. Remove BPV and commence with production testing the well. / 16.. 5/8" 95/8" 40# L-80 BTC 12 Y." Hole 7" 26# L-80 8 X" Hole Jewelry 1 - BOT Methanol Injection Nipple 2500' MP 2 - BOT ZX Packer 4,000' MD 3 :4"9.2# Le80 IBTCMod 6 1/8" Hole 2 80' MD (80' TVD) 1500' MD(1500' TVD} Planned TOC @ 2500' MD 4500' MD (4259' TVD) Formation Tops Beluga - Surface Tyonek- 894' RKB - Nabors 129 10,338' MD (9514' TVD) 12 13 24 NIKOlAEVSK UNIT RED #2 EXHIBIT A N Â 1,500 750 o 19 1,500 eet Alaska State Plane Zone 4, NAD27 - ¢:: 0 lC) -500 C'I " E u 0 Q) ëë u (/) 500 1000 1500 2000 2500 3000 - 3500 - () .! - .t: 4000 - C. () 0 4500 CO (,) :e 5000 () > () 5500 :J "- .... I V 6000 6500 7000 7500 8000 8500 9000 9500 10000 --~_._-------~_._~-___~.~I location: Kenai Peninsula. Alaska Slot: Slot Red#2 !I INTEQ Field: South Kenai Gas Field Well: Red#2 . RKB EleVatiOn:.:''''''..M' _Rod - - -"". 1 om . ~:IbO'" R:S:';:~t)-> I -2800 -2400 -2000 -1600 -1200 -BOO I I I I I I \ j ¡ l 9 5/8" Casing Pt. ( í í ¡ .i. -=- KOP 6.00 12.00 DLS: 3.00 deg/100ft 24.00 EOC ~~ 7" Casing PI. DLS: 2.00 deg/100ft Red#2 T65 Target Rvsd 3-Aug-04 12.56 Red#2 T81 Target Rvsd 3-Aug-04 Red#2 TD Target Rvsd 3-Aug-04 TD - 31/2" Casing Pt. UNOCALe -400 -0 400 / 9 5/8" Casing PI. -(} KOP /! IEOC : I I- 400 I L I I 0 \ r-- I 1- -400 f- I ^ t -800 I Z I 0 -1200 ::¡. ~ =r - cr ~ -1600 !. - I t -2000 (f) I £ I- -2400 ø ~ -" (') 3 " L -2800 ~ L 0 ;::1 ~ 17" Casing PI. Target T65 - EOD Red#2 T65 Target Rvsd 3-Aug-04 Red#2 T81 Target Rvsd 3-Aug-04 Red#2 TD Target Rvsd 3-Aug-04 TD - 3 1/2" Casing PI. WELL PROFILE DATA Point MD Inc AzI TVD I North East deg/100ft V.Sect Tie on 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 KOP 2000.00 0.00 0.00 2000.00 0.00 0.00 0.00 0.00 End of BuildfTurn 2986.38 29.59 223.45 2943.12 -180.83 -171.33 3.00 249.10 End of Hold 8348.62 29.59 223.45 7605.96 -2103.08 -1992.46 0.00 2897.04 Target 9278.19 11.00 223.45 8474.00 -2336.13 -2213.24 2.00 321 R06 I 10337.65 I -2352.27 0.00 342022 T.D. & End of Hold 11.00 223.45 9514.00 ¡ -2482.89 Target T65 - EOD Created by : Planner Date plotted: 4-Aug-2004 Plot reference is Red#2 Vers#1. Ref we/lpath is Red#2 VerS#1. , Coordinates are in feet reference Slot Red#2. I True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Datum #1 I¡ Rig Datum to mean sea level: 0.00 ft. ~North is aligned to TRU~ -500 -0 500 1000 1500 2000 2500 3000 3500 4000 Seale 1 em = 250 ft Vertical Section (feet) -> Azimuth 223.45 with reference 0.00 N, 0.00 E from Slot Red#2 e UNOCALe UNOCAl ,Slot Red#2 Red, South Kenai Gas Field,Kenai Peninsula, Alaska e PROPOSAL LISTING Page 1 Wellbore: Red#2 Vers#1 Well path: Red#2 Vers#1 Date Printed: 4-Aug-2004 BI. aw_ INTEQ Wellbore Name I Created Red#2 Vers#1 ~3-AuQ-2004 Wêll Name Red#2 Govemment tD I S'Qt Name Slot Red#2 Latitude N59 51 4.7640 I Last Revised I 4-AuQ-2004 I I I I I ~ I East 27.81E Installation Name Red 1 Eastina I 212836.0000 I Northina ) 2140997.0000 Field Name South Kenai Gas Field Eastin 269300.0040 I I Coord System Name I North AliQnme~ I AK-4 on NORTH AMERICAN DATUM 1927 daturl True! ¡;/ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 O.OOft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 223.45 degrees Bottom hole distance is 3420.22 Feet on azimuth 223.45 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e UNOCAL. UNOCAl ,Slot Red#2 Red, South Kenai Gas Field,Kenai Peninsula, Alaska e PROPOSAL LISTING Page 2 Wellbore: Red#2 Vers#1 Wellpath: Red#2 Vers#1 Date Printed: 4-Aug-2004 Bi. aw. INTEQ Wellpath Report I I MD(ft] Inc[deg] Azi(deg] I TVD(ft] Vertical North(ft] East{ft] 5tation Station I Dogleg I Vertical Station Comment I Depth 55 Position(Grid Position(Grid (deg/1O I 5ection[f [ i North \ East\ Oft! ill i 0.00 0.00 0.00 ! 0.00 0.00 O.OON O.OOE 2140968.25 212863.14 ! 0.00 í 0.00 Tie on , 100.00 0.00 0.00 I 100.00 100.00 O.OON I O.OOE 2140968.25 212863.14 I 0.00 I 0.00 . ~ I ---2ººJ)O ~QO í 0.00 200.00 200.00 O.OON ¡ O.OOE 2140968.25 212863.14 ! 0.00 i 0.00 c--~-~--~-~--i i I ~~- 300.00 0.00 0.00 I 300.00 300.00 O.OON O.OOE 2140968.25 212863.14 I 0.00 0.00 i _400.00 0.00 I 0.00 I 400..Q-º-- 400.00 O.OON I O.OOE 2140968.25 212863.14 +-º,~O.OO I I --------J 500.00 0.00 I 0.00 I 500.00 500.00 O.OON O.OOE 2140968.25 212863.14 I 0.00 I 0.00 I 600.00 0.00 I 0.00 600.00 600.00 O.OON I O.OOE 2140968.25 212863.14 0.00 0.00 ! 700.00 0.00 I 0.00 I 700.00 700.00 O.OON O.OOE 2140968.25 212863.14 : 0.00 I 0.00 I 800.00 0.00 I 0.00 í 800.00 800.00 O.OON I O.OOE 2140968.25 212863.14 0.00 I 0.00 i I _900.00 0.00 I 0.00 900.00 900.00 O.OON I O.OOE _2140968.25 212863.14 I 0.00 I 0.00 ! I 1000.00 0.00 I 0.00 1000.00 1000.00 O.OON ! O.OOE 2140968.25 212863.14 I 0.00 0.00 ¡ 1100.00 0.00 I 0.00 1100.00 1100.00 O.OON í O.OOE ---.1140968.25 212863.14-L 0.00 I 0.00 I ---.J 1200.00 0.00 I 0.00 11200.00 1200.00 O.OON I OWE 2140968.25 212863.14 I 0.00 I 0.00 I --j 1300.00 0.00 I 0.00 1300.00 1300.00 O.OON O.OOE 2140968.25 212863.11-t 0.00 I 0.00 I ! 1400.00 0.00 \ 0.00 1400.00 1400.00 O.OON ~OE 2140968.25 212863.14 0.00 I 0.00 I I 1500.00 0.00 I 0.00 ~OO~ºº -1~00.00 --º~OON I O.OOE 2140968.25 212863.14 0.00 í 0.00 9 5/8" Casino Pt., 9 5/8" Casino ---l 1600.00 0.00 I 0.00 I 1600.00 1600.00 O.OON O.OOE 2140968.25 212863.14 I 0.00 4~QJHL 1700.00 0.00 I 0.00 I 1700.00 1700.00 O.OON O.OOE 2140968.25 212863.14 I O.OO! 0.00 r---~~~--------¡ 1800.00 0.00 0.00 1800.00 1800.00 O.OON I O.OOE 2140968.25 212863.14 0.00 i 0.00 l 1900.00 0.00 0.00 I 1900.00 1900.00 O.OON O.OOE 2140968.25 212863.14 0.00 I 0.00 --1 2000.00 0.00 0.00 2000.00 2000.00 O.OON í O.OOE 2140968.25 212863.14 0.00 ! 0.00 KOP 3D8 Kick off Point 2100.00 3.00 223.45 2099.95 2099.95 1.905 I 1.80W 2140966.39 212861.30 3.00 2.62 I 2200.00 6.00 223.45 2199.64 2199.63 7.59S ! 7.20W 2140960.83 212855.77 3.00 10.46 2300.00 9.00 223.45 2298.77 2298.77 17.075 I 16.17W 2140951.57 212846.57 3.00 23.51 2400.00 12.00 223.45 2397.08 2397.08 30.305 28.70W 2140938.64 212833.73 I 3.00 I 41.74 2500.00 15.00 223.45 2494.31 2494.31 47.245 44.76W 2140922.08 212817.28 3.00 65.08 1 2600.00 18.00 223.45 2590.18 2590.18 67.86S 64.29W 2140901.93 212797.27 I 3.00 93.48 ! 2700.00 21.00 223.45 2684.43 2684.43 92.095 I 87.24W_ 1140878.25 212773.75 I 3.00 I 126.85 I 2800.00 24.00 223.45 2776.81 2776.81 119.865 I 113.56W 2140851.10 212746.79 3.00 165.12 ~ 2900.00 27.00 223.45 2867.06 2867.06 151.115 ! 143.16W 2140820.55 212716.45 i 3.00 I 208.16 I 2986.38 29.59 223.45 2943.12 2943.12 180.838 I 171.32W 2140791.51 212687.60 1 3.00 I 249.10 EOC End of Build/Turn --¡ 3000.00 29.59 223.45 I 2954.97 2954.97 185.725 175.95W 214078Q,R 212682.86 I 0.00 255.83 ---i 3100.00 29.59 ! 223.45 3041.93 3041.92 221.565 I 209.91W 2140751.70 212648.06 ! 0.00 I 305.21 I I I -----j 3200.00 29.59 223.45 I 3128.88 3128.88 257.415 ! 243.88W 2140716.66 212613.27 I 0.00 ! 354.59 3300.00 29.59 223.45 3215.84 3215.84 293.268 ¡ 277.84W 2140681.62 212578.47 0.00 403.97 3400.00 29.59 223.45 3302.80 3302.80 329.11S 311.80W 2140646.59 212543.67 0.00 453.36 3500.00 29.59 223.45 3389.75 3389.75 364.958 I 345.76W 2140611.55 212508.88 0.00 ! 502.74 3600.00 29.59 223.45 3476.71 3476.71 400.808 379.72W 2140576.51 212474.08 0.00 I 552.12 3700.00 29.59 223.45 3563.67 3563.67 436.658 I 413.69W 2140541.47 212439.28 0.00 601.50 3800.00 29.5LW23.45 3650.62 3650.62 472.505 1 447.65W 2140506.44 212404.48 I O.OO~.JllL f----. ----i 3900.00 29.59 T 223.45 3737.58 3737.58 508.358 481.61W 2140471.40 212369.69 i 0.00 ! 700.26 I 4000.00 29.59 I 223.45 3824.54 3824.54 544.208 I 515.57W 2140436.36 212334.891 0.00 749.64 --1 4100.00 29.59 223.45 3911.49 3911.49 580.048 I 549.53W 2140401.32 212300.09 T 0.00 799.02 ! 4200.00 29.59 223.45 3998.45 3998..'&... ,ßJ5.898 I_~OW 2140366.29 212265.29 U·OO 848.40 I I 4300.00 29.59 223.45 4085.41 4085.41 651.748 I 617.46W 2140331.25 212230.50 I 0.00 897.79 . [ 4400.00 29.59 223.45 4172.36 4172.36 687.595 651.42W 2140296.21 212195.70 0.00 947.17 4500.00 29.59 223.45 4259.32 4259.32 723.435 685.38W 2140261.18 212160.90 I 0.OQ-+--~96.55 7" Casino Pt. 7.000" Casino ~ 4600.00 29.59 223.45 4346.28 4346.28 759.28S 719.35W 2140226.14 ' 212126.11 I 0.00 ! 1045.93 I I 4700.00 29.59 I 223.45 4433.23 4433.24 795.138 753.31W 2140191.10 I 212091.31 ¡ 0.00 ! 1095.31 I 4800.00 29.59 I 223.45 4520.19 4520.19 830.988 I 787,'ll'/'L 2140156.06 21205~0.00 11144.69 J All data is in Feet unless otHerwise stated Coordinates are from Slot MD's are from Rig and TVD's are f~om Rig ( Datum #1 O.OOft above mean sea level) Vertical 8ection is from O.OON O.OOE o~ azimuth 223.45 degrees Bottom hole distance is 3420.22 Feet on azim~th 223.45 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes ,ncorporated e UNOCAL. UNOCAL ,Slot Red#2 Red, South Kenai Gas Field,Kenai Peninsula, Alaska e PROPOSAL LISTING Page 3 Wellbore: Red#2 Vers#1 Well path: Red#2 Vers#1 Date Printed: 4-Aug-2004 rei. BAKER HUGHIS INTEQ Wellpath Report I MD[ft] Inc[deg] Azi[deg] 1 TVD[ft] Vertical North[ft] East[ft] Station Station Dogleg Vertical Station Comment I i I Depth SS Position(Grid Position(Grid [degl10 Seclion[f I I North) East) Oft] t1 i 4900.00 29.59 223.45 4607.15 4607.15 866.838 i 821.23W 2140121.03 212021.71 I 0.00 1194.07 ! 5000.00 29.59 223.45 i 4694.Jl ~4.11 902.678 : 855~~ 2140085.99 211986.92 ~: 1243.45 I 211952.12JOO 11292.83 -, 5100.00 29.59 I 223.45 4781.06 4781.06 ~l!.528J 889.1§Y'L ~140050.95 I --------j 5200.00 29.59 I 223.45 4868.02 4868.02 974.37S 1 923.12W 2140015.92 211917.32 T 0.00 11342.22 ! 5300.00 29.59 I 223.45 4954.98 4954.98 1010.228 i 957.08W 2139980.88 211882.52 [ 0.00 I 1391.60 I -; 5400.00 29.59 I 223.45 5041.93 5041.93 1046.0781 991.04W 2139945.84 211847.73 I 0.00 11440.98 I 5500.00 29.59 223.45 I 5128.89 5128.89 1081.91811025.01V1 2139910.80 211812.93 1 0.00 I 1490.36 5600.00 29.59 223.45 1 5215.85 5215.85 1117.76511058.97V1 2139875.77 211778.13 i 0.00 I 1539.74 I 5700.00 29.59 I 223.45 1 5302.81 5302.80 1153.615 1092.93'" 2139840.73 211743.33 I 0.00 I 1589.12 i 5800.00 29.59 I 223.45 5389.76 5389.76 1189.465 1126.89'" 2139805.69 211708.54 r 0.00 11638.50 I 5900.00 29.59 223.45 5476.72 5476.72 1225.31S 1160.85'" 2139770.65 211673.74 I 0.00 i 1687.88 i 6000.00 29.59 223.45 5563.68 5563.68 1261.158 1194.82'" 2139735.62 211638.94 I 0.00 i 1737.27 I 6100.00 1297.00811228.78'" 211604.15 I ----j 29.59 223.45 5650.63 5650.63 2139700.58 0.00 1786.65 -j 6200.00 29.59 223.45 5737.59 5737.59 1332.85511262.74'" 2139665.54 211569.35 0.00 I 1836.03 I 1368.70511296.70'" !--~11534.55 1 0.00 1885.41 , 6300.00 29.59 223.45 5824.55 5824.55 21396~ÃL I 6400.00 29.59 223.45 i 5911.50 5911.50 1404.54511330.67'" 2139595.47 211499.75 1 0.00 1934.79 I 1 211464.9~0.00 I 19ª4,fl -----j ~O.OO 29.59 223.44~ 5998.46 1440.395 1364~ ~~139560.43 - I Î 6600.00 29.59 223.45 6085.42 r--9085.42 1476.245 1398.59'" 2139525.39 211430.16 0.00 I 2033.55 ---i 6700.00 29.59 223.45 6172.37 6172.37 1512.095 1432.55'" 2139490.36 211395.36 ! 0.00 2082.93 I 6800.00 29.59 223.45 6259.33 6259.33 1547.945 1466.51V1 2139455.32 211360.56 0.00 2132.31 i 6900.00 29.59 223.45 6346.29 6346.29 1583.785 1500.48V1 2139420.28 211325.77 0.00 2181.70 I 7000.00 29.59 223.45 6433.24 6433.24 1619.638 1534.44'" 2139385.24 211290.97 0.00 i 2231.08 I 7100.00 29.59 I 223.45 6520.20 6520.20 1655.488 I 1568.40'" 2139350.21 211256.17 0.00 2280.46 7200.00 29.59 223.45 6607.16 6607.16 1691.338 1602.36'" 2139315.17 211221.38 0.00 2329.84 7300.00 29.59 223.45 6694.11 6694.12 1727.185 1636.32'" 2139280.13 211186.58 0.00 2379.22 7400.00 29.59 i 223.45 6781.07 6781.07 1763.025 1670.29'" 2139245.10 211151.78 0.00 1 2428.60 7500.00 29.59 223.45 6868.03 6868.03 1798.875 1704.25'" 2139210.06 211116.98 0.00 I 2477.98 I ~OO.OO 29.59 223.45 6954.99 6954.99 1834.72511738.21'" 2139175.02 211082.19 0.00 . 2527.36 I 7700.00 29.59 223.45 7041.94 7041.94 1870.575 11772.17'" 2139139.98 211047.39 0.00 I 2576.75 I 7800.00 29.59 223.45 7128.90 7128.90 1906.42511806.14V1 2139104.95 211012.59 1 0.00 2626.13 .J 7900.00 29.59 223.45 I 7215.86 7215.86 1942.26S11840.10Vl 2139069.91 210977.79 0.00 2675.51 i 8000.00 29.59 223.45 7302.81 7302.81 1978.11 S I 1874.06V1 2139034.87 210943.00 0.00 2724.89 I -I 8100.00 29.59 223.45 7389.77 7389.77 2013.968 I 1908.02V1 2138999.84 210908.20 . 0.00 I 2774.27 I 8200.00 29.59 223.45 7476.73 7476.73 2049.81S11941.98V1 2138964.80 210873.40 0.00 2823.65 i 8300.00 29.59 I 223.45 7563.69 7563.68 2085.655 I 1975.95V1i 2138929.76 210838.60 µOO 2873.03 ~- 8348.62 29.59 223.45 7605.96 7605.96 2103.085 1992.46V1i 2138912.73 210821.69 0.00 2897.04 Beoin Drop. End of Hold 8400.00 28.56 223.45 7650.87 7650.87 2121.215 2009.63V1i 2138895.01 210804.09 . 2.00 I 2922.01 8500.00 26.56 223.45 7739.51 7739.51 2154.805 2041.45V1i 2138862.18 210771.49 2.00 I 2968.28 8600.00 24.56 223.45 7829.72 7829.72 2186.13S 2071.13V1i 2138831.56 210741.08 2.00 3011.43 8700.00 22.56 I 223.45 7921.38 7921.37 2215.148 2098.62W 2138803.20 210712.91 2.00 3051.41 8800.00 20.56 223.45 8014.37 8014.37 2241.828 2123.90W 2138777.12 210687.01 2.00 3088.16 8900.00 18.56 223.45 8108.59 8108.59 2266.135 2146.93V1i 2138753.36 210663.42 2.00 3121.64 9000.00 16.56 223.45 8203.93 8203.93 2288.04SI2167.68V1i 2138731.95 210642.16 2.00 3151.82 9100.00 14.56 223.45 I 8300.25 8300.25 2307.515 2186.13V1i 2138712.92 210623.25 I 2.00 3178.65 I 9200.00 12.56 223.45 1 8397.46 8397.46 2324.54S 2202.26V1i 2138696.28 210606.72 1 2.00 3202.10 ------1 9278.19 11.00 223.45 8474.00 8474.00 2336.13S 2213.24V1i 2138684.95 210595.48 1 2.00 3218.06 Taraet T65 - EOD. End of Drop/Turn Î 9300.00 11.00 r 223.45 8495.41 8495.41 2339.155 2216.10Vli 2138682.0JL _210592.54 I 0.00 3222.23 I I 9400.00 11.00 I 223.45 I 8593.57 8593.57 2353.00S I 2229.22V1i 2138668.46 210579.10 I 0.00 3241.31 ~ 9500.00 11.00 I 223.45 8691.74 8691.74 2366.865 2242.35V1i 2138654.92 210565.65 i 0.00 3260.39 I 9600.00 11.00 I 223.45 8789.90 8789.90 2380.715 2255.47V1i 2138641.38 210552.21 i 0.00 3279.47 All data is in Feet unless otherwise stated Coordinates are from 810t MD's are from Rig and TVD's are from Rig ( Datum #1 O.OOft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 223.45 degrees Bottom hole distance is 3420.22 Feet on azimuth 223.45 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e UNOCALe UNOCAL ,Slot Red#2 Red, South Kenai Gas Field,Kenai Peninsula, Alaska e PROPOSAL LISTING Page 4 Wellbore: Red#2 Vers#1 Wellpath: Red#2 Vers#1 Date Printed: 4-Aug-2004 rei. BAKER HUGHIS INTEQ I WellDath ReDort I MO[ft} Inc[deg} Azi[deg} i TVD[ft} Vertical North[ft} East[ft} Station Station Dogleg Vertical Station Comment I Depth SS Position(Grid Position(Grid [deg/10 Section[f I I North) East} Oft1 tl I 9700.00 11.00 I 223.45 I 8888.06 8888.06 2394.56S I 2268.59\1\i 2138627.84 210538.76 j 0.00 3298.55 f-Jt800.00 11.00 i 223.45 i 8986.22 8986.22 2408.41Qlz281.7JIf1 2il8614.~º- -..J'10525.32 ! 0.00 I 3317.63 I j 9900.00 11.00 J-£23.45 ¡ 9084.39 9084.39 ~2.26S I 2294.84\1\i 2138600.76 210511.87 I 0.00 i 3336.71 j r----~~--- -i 10000.00 11.00 I 223.45 I 9182.55 9182.55 2436.12SI2307.96111i 2138587.22 210498.43] 0.00 i 3355.79 I I I 223.45 I 9280.71 2449.97S 2321.08\1\i 210484.98.Lo.00 µ374.87 I 10100.00 11.00 9280.71 2138573.68 ~ 10200.00 11.00 I 223.45 ! 9378.88 9378.87 2463.82S I 2334.20111i 2138560.15 210471.54 I 0.00 I 3393.95 I I 10300.00 11.00 I 223.45 ¡ 9477.04 9477.04 2477.67SI2347.33111i 2138546.61 2'10458.09 I 0.00 3413.03 I 10337.65 11.00 I 223.45 ! 9514.00 9514.00 ' 2482.89S I 2352.27111i 2138541.51 2'10453.03 i 0.00 I 3420.22 TO - 31/2" Casing pt., 3 1/2" Casing, I I I I I I I I End of Hold i I I I All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig ( Datum #1 O.OOft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 223.45 degrees Bottom hole distance is 3420.22 Feet on azimuth 223.45 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e UNOCALe UNOCAL ,Slot Red#2 Red, South Kenai Gas Field, Kenai Peninsula, Alaska e PROPOSAL LISTING Page 5 Well bore: Red#2 Vers#1 WeIJpath: Red#2 Vers#1 Date Printed: 4-Aug-2004 .1. 'WI. INTEQ I Comments i MDfftJ I TVDfft] Eastrtll Northrftl I Comment I I 1500.00 \ 1500.00 O.OOE O.OON I 9 5/8" CasinQ PI. I I 2000.00 I 2000.00 IKOP i O.OOE O.OON I I I ~ 2986.38 I 2943.12 171.32W 180.835 'EOC \ I _4500.00 r 4259.32 685.38W 723.435 17" CasinQ.EL I I I I 8348.62 7605.96 1992.46W 2103.085 i BeQin Drop ~ 9278.19 I 8474.00 2213.24W 2336.135 I Taraet T65 - EOD I _J0337.65 i 9514.00 2352.27W ~482.895 I TO - 3 1/2" Casino PI. I .~ Hole Sections I Diameter ¡5tart Start Start 5tart End End End End\nEast[ft] Wellbore I linl · MOrn] TVDrftl Northrftl Eastrftl MDrftl TVDrftJ Northrtll 12 1/4 I 0.00 0.00 O.OON O.OOE 1500.00 1500.00 O.OON O.OOE Red#2 Vers#1 I 81/2 I 1500.00 1500.00 O.OON I O.OOE 4500.00 4259.32 723.435 685.38W Red#2 Vers#1 I \ 61/8 I 4500.00 4259.32 723.435 I 685.38W 10337.65 9514.00 I 2482.895 I 2352.27W Red#2 Vers#1 I Casin s Name Wellbore 9 5/8" Casin 7.000" Casin 3 1/2" Casin Red#2 Vers#1 Red#2 VerS#1 Red#2 VerS#1 T araets Name Northrft] Eastrftl TVDrftl Latitude Lonaitude Eastino Northina Red#2 T65 Target 2408.725 2282.02W I 8474.00 N59 50 41.0388 W151 34 26.5685 210525.00 2138614.00 I Rvsd 3-Aua-04 I I ~- I Red#2 T81 Target 2408.725 2282.02W 8944.00 N59 50 41.0388 W151 34 26.5685 210525.00 2138614.00 Rvsd 3-AuQ-04 . Red#2 TD Target 2408.725 2282.02W 9514.00 N59 50 41.0388 W151 34 26.5685 210525.00 2138614.00 I Rvsd 3-Aua-04 All data is in Feet unless otherwise stated Coordinates are from 510t MD's are from Rig and TVD's are from Rig ( Datum #1 O.OOft above mean sea level) Vertical 5ection is from O.OON O.OOE on azimuth 223.45 degrees Bottom hole distance is 3420.22 Feet on azimuth 223.45 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated e e Maximum Anticipated Surface Pressure Red #2 Kenai Peninsula, Alaska Assumptions: .// 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a ~ psilft gradient from ./ surface to planned total depth at 9,415' TVO RKB. Unocal has reviewed data from the thr offset wells. These are Red #1, NFU #41-35 and NFU #11-4. /' 2. The MAS.P. during drilling operations will be governed by the 7" shoe frac gradient, and is calculated based on a full column of gas between the 7" shoe and the surface. 3. The MAS.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TO & the surface. The 7" intermediate casing must be designed to handle a potential burst load case based on a shallow leak in the 31/2" pipe early in the life of a 9,514' TVO gas completion (Le. before reservoir pressure declines). M.AS.P. Calculation During Production Phase: Max. pore pressure at T.O. = 9514 TVO x t~ 4120 psi - (0.096 psi/ft * 9514 ft) = = 4120 psi M.A.S.P. (tbg leak at surface) = = 3207 psi MAS.P. Calculation During Drilling Phase: Est. F rac pressure at 7" shoe 4259 ft. x 0.8 psi/ft = = 3407 psi MAS.P. during drilling = 3407 psi - (.08 psi/ft x 4259 ft.) = = 3066 psi e e Red #2 Casing Design / / Size Weie;ht Grade Connection Tensile Burst Collapse 9-5/8" 40# L-80 BTC 916,0001b 5,750 psi 3,090 psi 7" 26 # L-80 BTC mod. 604,000 lb 7,240 psi 5,410 psi 3-1/2" 9.2 # L-80 IBTC mod. 207,2001b 10,160 psi 10,540 psi 9-5/8" Surface Casin!! Calculated Capacity Safety Factor Tension 1500' x 40# = 60.0k 916k 15.3 Burst (4259' TVD x (0.433 psi/ft - 5750 psi 4.1 0.1 psi/ft)) = 1418 psi Collapse (1500' TVD x (0.433 psi/ft - 3090 psi 2.1 0.1 psi/ft)) = 1499 psi / 7" Intermediate Casin!! Calculated Capacity Safety Factor Tension 4500' x 26# = 119.6k 604k 5.2 Burst (9514' TVD x (0.433 psi/ft- 7240 psi 2.3 0.1 psi/ft)) = 3168 psi Collapse (4259' TVD x (0.433 psi/ft- 5410 psi 3.8 0.1 psi/ft)) = 1418 psi /' 3 ~" Production Strin!! Calculated Capacity Safety Factor Tension 10338' x 9.2# = 95.1k 207.2k 2.2 Burst (9514 TVD x (0.433 psi/ft- 10160 psi 3.2 0.1 psi/ft)) = 3168 psi Collapse (9514' TVD x (0.433 psi/ft- 10540 psi 3.3 0.1 psi/ft)) = 3168 psi // e e Schlumberger Ce m CAD E * well cementing recommendation for 9-5/8" Surface Operator Country State :UNOCAL : USA :AK Well Field Red #2 Red Prepared for Proposal No. Date Prepared : Rob Stinson : #1 : 08-05-2004 Location Service Point Business Phone : FAX No. Ninilchik Kenai (907) 776-8155 (907) 776-8158 Prepared by Howard West Phone (907) 230-6628 E-Mail Address:HWest1@slb.com Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. . Mark of Schlumberger Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) Section 1 . well description Configuration Stage Type Mud Une Total MD BHST Bit Size : casing : Single : land it ft 1000) psi a a a o a a o N Well Lìthology Formation Red #2yrelím.cfw; 08-05-2004; LoadCase 9-5/8 in Surface (a) ; Version wcs-cem44~104 e Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) ID Landing Collar MD : 1420.0 ft Casinglliner Shoe MD : 1500.0 ft L-80 Mean OH Diameter : 12.250 in Mean Annular Excess : 30.0 % Mean OH Equivalent Diameter: 12.934 in Total OH Volume : 230.8 bbl (including excess) The Well is considered VERTICAL MD ft 1500.0 Formation Data Pore Name Ib/ al 8.33 e Sc~llIlrger Thread Lithology Sandstone Brc Red #2yrelim.cfw ; 08-05-2004; LoadCase 9-5/8 in Surface (a) ; Version wcs-cem44_104 Page 3 e Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) Section 2: fluid description Fluid No: 1 Rheo. Model At temp. : BINGHAM : 80 degF MUD Mud Type : WBM Water Type : Fresh VOLUME FRACTION Solids : 6.0 % Oil :0.0% Water : 94.0 % Mud DESIGN Density Pv Ty Gel Strength e Sil_.raer : 9.30 Ib/gal : 12.000 cP : 15.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 107.7 bbl Fluid No: 2 Rheo. Model At temp. : NEWTONIAN : 80 degF Fresh Water DESIGN Density : 8.32 Ib/gal Viscosity : 5.000 cP Gel Strength : (lbf/100ft2) Job volume : 5.0 bbl Fluid No: 3 Rhea. Model At temp. : BINGHAM : 80 degF MUDPUSH 1/ DESIGN Density Pv Ty Gel Strength : 10.50 Ib/gal : 18.000 cP : 19.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 40.0 bbl Fluid No: 4 Rheo. Model At temp. : BINGHAM : 81 degF DESIGN BLEND Name : G Dry Density : 199.77 Iblft3 Sack Weight: 941b BASE FLUID Type : Fresh water Lead Slurry DESIGN SLURRY Mix Fluid Yield Porosity Density : ~. 4 gal/sk : .9 ~ ft3/sk : .1 % : 8.32 Ib/gal Density Pv Ty Gel Strength : 12.80 Ib/gal . : 11.936 cP : 16.99Ibf/100ft2 : (lbf/100ft2) Job volume :~. bl Quantity : 2Q 3 sk . Solid Fractio : 24.9 % Base Fluid : 11.064 gal/sk Page 4 Red #2yrelim.ctw ; 08-05-2004; LoadCase 9-5/8 in Surface (a) ; Version wcs-cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) SÛI.lI8rger Additives Code Cone. Function 0079 1 .500 %BWOC EXTENDER S002 1.000 %BWOC Accelerator 0046 0.200 %BWOC ANTIFOAM Thickening Time Compressive Strength Schedule ( ) Schedule ( ) 1 00 Bc 500 psi at at 03:05 hr:mn 29:40 hr:mn Tail Slurry DESIGN Fluid No: 5 Rheo. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength : 15.80 Ib/gal : 25.749 cP : 24.73 Ibf/100ft2 : (lbf/100ft2) DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight: 94 Ib BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity ~. 5 8.. al/sk : .17 3/sk . . % Job VOlume~' .3 b I Quantity : 203 sk Solid Fracti .: 41.8 % Density : 8.32 Ib/gal Base Fluid : 5.098 gal/sk Additives Code Cone. Function 0065 0.300 %BWOC DISPERSANT S002 1.500 %BWOC Accelerator 0046 0.200 %BWOC ANTI FOAM Thickening Time Compressive Strength Schedule ( ) Schedule ( ) 1 00 Bc 2573 psi at at 03:04 hr:mn 24:00 hr:mn Page 5 Red #2yrelim.cfw; 08-05-2004; LoadCase 9-5/8 in Surface (a); Version wcs-cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) Sàllßlrger Section 3: pumping schedule Start Job: Ensure that hole and mud are properly conditioned as per program Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (deQF) Fresh Water 5.0 5.0 1.0 5.0 80 Fluid pack lines Pause 0.0 0.0 5.0 0.0 80 3-Pressure Test Lines MUDPUSH II 5.0 40.0 8.0 40.0 80 7-Start Pumping Spacer Pause 0.0 0.0 5.0 0.0 80 4-Drop Bottom Plug Lead Slurry 5.0 77.2 15.4 77.2 80 13-Start Mixing Lead Slurry Tail Slurry 5.0 42.3 8.5 42.3 80 16-Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 18-Drop Top Plug Mud 5.0 107.7 21.5 107.7 80 19-5tart Displacement Total 01 :09 272.2 bbl hr:mn End Job: Record returns to surface and plug bumping. D namic Securit Checks: Frac 8 psi Pore 2 psi Collapse 2766 psi Burst 5379 si at 80.0 It at 80.0 It at 1420.0 It at 0.0 It BHCT 80 degF Simulated BHCT (degF) CT at TOC de F Static temperatures: At Time (hr:mn) Top of Cement (degF) Bottom Hole de F Temperature Results Simulated Max HCT Max HCT Depth Max HCT Time (hr:mn) (degF) d F Geo. Temp. (degF) de F Section 4: fluid se uence Original fluid Mud pv : 12.000 cP 107.7 bbl 272.2 bbl 0.0 ft 9.30 Ib/gal Tv : 15.00 Ibf/100ft2 Displacement Volume Total Volume TOC Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft) (lb/Qal) Fresh Water 5.0 0.0 8.32 viscosity:5.000 cp MUDPUSH " 40.0 0.0 10.50 pv:18.000 cp Tv:19.00 Ibf/100ft2 Lead Slurry 77.2 1000.0 12.80 pv:11.936 cP Tv:16.99 Ibf/100ft2 Tail Slurry 42.3 500.0 1000.0 15.80 pv:25.749 cp Tv:24.73 Ibf/100ft2 Mud 107.7 0.0 9.30 pv:12.000 cP Tv:15.00 Ibf/100ft2 Page 6 Red #2J)relim.cfw ; 08-05-2004; loadCase 9-5/8 in Surface (a) ; Version wcs-cem44_1 04 Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) Frac Pore Collapse Burst Cso.Puma out 9 psi 19 psi 2766 psi 5750 psi 14ton at 80.0 It at 80.0 It at 1420.0 It at 0.0 It o o -.::t o 75.0 il.. 1: Š Time (min) o 75.0 .... Q) ..... œ¡ cr ~ o ï:ï:o o Time Red 112yrelim.cfw; 08-05-2004; LoadCase 9-5/81n Surface (a) ; Versionwcs-cem44_104 Client Well String District Country Loadcase UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) CemCADE It o ;g ~I E ~ ~ o ~ > - · · t ill ~ " · · ~ v o o N ~ ~ " ~ i1 " " o o o C\J 40,0 bbl 10.50 Ib/gal Bingham: PV = 18.000 cP Ty 19,00 Ibfl1 00112 77.2 bbl 12,80 Ib/gal Bingham: PV = 11.936 cP Ty" 16.99Ibt/100lt2 42.3 bbl 15.80 Ib/gal Bingham: PV = 25.749 cP Ty " 24.73 Ibf!100lt2 107.7 bbl 9.30 Iblgal Bingham: PV = 12.000 cP Ty = 15.00 Ibf/10Qft2 Total Depth = 1500.0 ft Top of Cement" 0.0 It "Mark of Schlumberger 1< Client Well String District Country : UNOCAL ; Red #2 : 9-5/8" Surface : Kenai : USA -.¿ Fluid Sequence Dynamic Well Security Red #2yrelim.cfw: 08-05-2004: LoadCase 9-51$ in Surface (a) ; Version Wcs-cem44_104 5.0 bbl 8.32 Ib/gal Newtonian: Visco." 5.000 cP Client Well String District Country Loadcase : UNOCAL Red #2 9-5/8 Kenai USA 9-5/8 in Surface (a) <D ro .!2' .D = () :; '" '" ~ CL C c « 00 Tim e (m in) Red #2-.J)relim<cfw; 08-05-2004; LoadCase 9-5/8 in Surface (a); Version wcs-cem44_104 Page 9 e e Schlumberger CemCADE* well cementing recommendation for 7" Intermediate Operator Country State : UNOCAL : USA :AK Well Field Red #2 Red Prepared for Proposal No. Date Prepared : Rob Stinson : #1 ; 08-05-2004 Location Service Point Business Phone ; FAX No. Ninilchik Kenai (907) 776-8155 (907) 776-8158 Prepared by Howard West Phone (907) 2730-6628 E-Mail Address;HWest1@slb.com Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. . Mark of Schlumberger Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 Section 1 . welfdescription Configuration Stage Type Mud line Total MD BHST Bit Size : Casing :Singlé : land : O.Oft : 4500.0 ft : 92 :8 ft (x 1000) a , o a a \C) N a a a a \C) Well Lithology Formation Red #2Yrelim.cfw ; 08-05.2004 ; ; Version wcs~cem44_104 e Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 MD tt) 1500.0 Previous String OD Weight Ib/tt 40.0 ID Landing Collar MD : 4420.0 ft Casinglliner Shoe MD : 4500.0 ft OD Casing/Liner Weight ID Grade Iblft 26.0 L-80 Mean OH Diameter : 8.500 in Mean Annular Excess : 30.0 % Mean OH Equivalent Diameter: 8.901 in Total OH Volume : 230.9 bbl (including excess) Max. Deviation Angle : 30 deg Max. DLS : 3.000 deg/100ft Formation Data Pore Name sittt 0.433 e Sâl.lterger Lithology Sandstone Thread BTC Red #2_prelim.cfw; 08-05-2004; LoadCase 7" Intermediate; Version wcs-cem44_104 Page 3 e Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 Section 2: fluid description Fluid No: 1 Rheo. Model At temp. : BINGHAM : 80 degF MUD Mud Type : WBM Water Type : Fresh VOLUME FRACTION Solids : 6.0 % Oil :0.0% Water : 94.0 % Mud DESIGN Density Pv Ty Gel Strength e Sc~I.lrger : 9.50 Ib/gal : 15.000 cP : 18.00 Ibf/100ft2 : (Ibf/100ft2) Job volume : 169.1 bbl Fluid No: 2 Rheo. Model At temp. : NEWTONIAN : 80 degF Fresh Water DESIGN Density : 8.32 Ib/gal Viscosity : 5.000 cP Gel Strength : (lbf/100ft2) Job volume : 5.0 bbl Fluid No: 3 Rheo. Model At temp. : BINGHAM : 80 degF MUDPUSH II DESIGN Density Pv Ty Gel Strength : 10.50 Ib/gal : 22.000 cP : 22.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 35.0 bbl Fluid No: 4 Rheo. Model At temp. : BINGHAM : 80 degF DESIGN BLEND Name : G Dry Density : 199.77 Iblft3 Sack Weight: 94 Ib BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity Density Lead Slurry DESIGN Density Pv Ty Gel Strength :~.06 gal/sk : 1.98 3/sk :: % : 8.32 Ib/gal : 12.80 Ib/gal : 31.504 cP : 33.84 Ibf/100ft2 : (lbf/100ft2) I Job volume : 4 .0 bþl Quantity 24,.87 sk Solid Fracti ",.;25.3 % Base Fluid : 11.067 gallsk Page 4 Red #2yrelim.cfw; 08'05-2004; LoadCase 7" Intermediate; Version wcs-cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 S~I..rger Additives Code Cone. Function 0046 0.200 %BWOC ANTI FOAM 0079 2.000 %BWOC EXTENDER 0167 0.800 %BWOC FLUID LOSS S002 0.750 %BWOC Accelerator Thickening Time Compressive Strength Schedule 9.4-1 Schedule ( ) 1 00 Bc 1137 psi at at 03:30 hr:mn 46:00 hr:mn Tail Slurry DESIGN Fluid No: 5 Rheo. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength : 15.80 Ib/gal : 72.013 cP : 10.82 Ibf/100ft2 : (lbf/100ft2) DESIGN BLEND Name : G Dry Density : 199.77 Ib/ft3 Sack Weight: 94 Ib BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity æ· 5.. al/sk :.1 3/sk .6% Job VOlume~. . bl Quantity . 85 1 sk Solid Fracti .. : 41.4 % Density : 8.32 Ib/gal Base Fluid : 5.091 gal/sk Additives Code 0167 0065 0046 Cone. 0.400 %BWOC 0.300 %BWOC 0.200 %BWOC Function FLUID LOSS DISPERSANT ANTI FOAM Compressive Strength Schedule 9.18- 4 Schedule ( ) 1 00 Bc at 04:38 hr:mn Thickening Time 2351 psi at 18:30 hr:mn Page 5 Red #2--prelim.cfw; 08-05-2004; LoadCase 7" Intermediate; Version wcs-cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 Sàllllrger Section 3: pumping schedule Start Job: Ensure that hole and mud are properly conditioned as per program Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (deaF) Fresh Water 5.0 5.0 1.0 5.0 80 Fluid pack lines Pause 0.0 0.0 5.0 0.0 80 3-Pressure Test Lines MUDPUSH II 5.0 35.0 7.0 35.0 80 7-Start Pumping Spacer Pause 0.0 0.0 5.0 0.0 80 4-Drop Bottom Plug Lead Slurry 5.0 44.0 8.8 44.0 80 13-Start Mixing Lead Slurry Tail Slurry 5.0 17.7 3.5 17.7 80 16-Start Mixing Tail Slurry Pause 0.0 0.0 5.0 0.0 80 18-Drop Top Plug Mud 5.0 169.1 33.8 169.1 80 19-5tart Disolacement Total 01 :09 270.9 bbl hr:mn End Job: Record plug bumping. D namic Securit Checks: Frac 219 psi Pore 82 psi Collapse 5011 psi Burst 6445 si at 4500.0 ft at 1500.0 ft at 4420.0 ft at 0.0 ft BHCT 86 degF Simulated BHCT (degF) CT at TOC de F Static temperatures : At Time (hr:mn) Top of Cement (degF) Bottom Hole de F Temperature Results Simulated Max HCT Max HCT Depth Max HCT Time (hr:mn) (degF) de F Geo. Temp. (degF) de F Section 4: fluid se uence Original fluid Mud pv : 15.000 cP 169.1 bbl 270.9 bbl 2500.0 ft 9.50 Ib/gal Ty : 18.00 Ibf/100ft2 Displacement Volume Total Volume TOe Fluid Sequence Name Volume Ann. Len Top Density Rheology (bbl) (ft) (ft} (Ib/Qal\ Fresh Water 5.0 177.1 1123.1 8.32 viscosity:5.000 cp MUD PUSH " 35.0 1199.8 1300.2 10.50 pv:22.000 cp Tâ2.00 Ibf/100ft2 Lead Slurry 44.0 1500.0 2500.0 12.80 pv:31.504 cp Ty:33.84Ibt/100ft2 Tail Slurry 17.7 500.0 4000.0 15.80 pv:72.013 cP Ty:10.82 Ibf/100ft2 Mud 169.1 0.0 9.50 pv:15.000 cP Ty:18.00 Ibf/100ft2 Page 6 Red #2J}relim.cfw; 08-05-2004; LoadCase 7" Intermediate; Version wcs-cem44_104 Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 Pore Collapse Burst Cs .Pum out 348 psi 90 psi 5011 psi 7229 psi 40 ton at 1500.0 It at 1500.0 It at 4420.0 It at 1300.2 It 0 0 0 ..,.... Il. I Š 0 Time (min) ..,.... o () ...... (U œ:: $: o ¡::¡:o o Time (min) Red #2_preJim.cfw; 08,05,2004; LoadCase 7" Intermediate; Version wcs'cem44_104 Client Well String District Country Loadcase UNOCAL Red #2 7 Kenai USA 7 * CemCADE It o -E-- 7.5 Ib/gal 10.0 12.5 Client Well String District Country 15.0 : UNOCAL Red #2 . 7" Intermediate : Kenai : USA ~ o ;1 ! , c o ~ > o d o '" N ro ) "- . ø ] ~ o o "' ~ , Û E ~ ¡¡ ~ . '" o d o o '" Fluid Sequence 5.0 bbl 8.32 Ib/gal Newtonian: Visco. =:: 5;000 cP 35.0 bbl 10.50 Ib/gal Bingham: PV = 22.000 cP Ty = 22.00 Ibf/1 OOft2 44.0 bbl 12.80 Ib/gal Bingham: PV 31.504 cP Ty = 33.841bf/1 00112 17.7 bbl 15.80 Ib/gal Bingham: PV = 72.013 oP Ty 10.82 Ibf/100ft2 169.1 bbl 9.50 Iblgal Bingham: PV = 15.000 cP Ty = 18.00 Ibf/1 00ft2 Total Depth = 4500.0 11 Top of Cement = 2500.011 'Mark of Schlumberger Dy name Frac Pore Dynamic Well Security Red #2-prelim.cfw ; 08-05-2004; LoadCase 7" Intermediate; VersiQn wcs-cem44_1 04 Client Well String District Country Loadcase : UNOCAL Red #2 7 Kenai USA 7 :;!: F ra c ~PDre- H y d r 0 s ta tic II) C') õ:i '" g c-J (!) 5 '" '" (!) ò:: ~ ¿ c: <{ 2 <1> ro o 25.0 50.0 75.0 Time (min) <:) co '" ê Ë :Ê. ;:;- 'g 1D > ¿ c: <C <:) Time (min) Page 9 Red #2_prelim.c!w; 08-05-2004; LoadCase 7" Intermedíate; Versíon wcs-cem44_104 e e Schlumberger CemCADE* well cementing recommendation for 3.5" Production Operator Country State : UNOCAL : USA :AK Well Field Red #2 Red Prepared for Proposal No. Date Prepared : Rob Stinson : #1 : 08-05-2004 Location Service Point Business Phone FAX No. Ninilchik Kenai (907) 776-8156 (907) 776-8158 Prepared by Howard West Phone (907)230-6628 E-Mail Address:HWest1@slb.com Disclaimer Notice: This information is presented in good faith, but no warranty is given by and Schlumberger assumes no liability for advice or recommendations made concerning results to be obtained from the use of any product or service. The results given are estimates based on calculations produced by a computer model including various assumptions on the well, reservoir and treatment. The results depend on input data provided by the Operator and estimates as to unknown data and can be no more accurate than the model, the assumptions and such input data. The information presented is Schlumberger's best estimate of the actual results that may be achieved and should be used for comparison purposes rather than absolute values. The quality of input data, and hence results, may be improved through the use of certain tests and procedures which Schlumberger can assist in selecting. The Operator has superior knowledge of the well, the reservoir, the field and conditions affecting them. If the Operator is aware of any conditions whereby a neighboring well or wells might be affected by the treatment proposed herein it is the Operator's responsibility to notify the owner or owners of the well or wells accordingly. Prices quoted are estimates only and are good for 30 days from the date of issue. Actual charges may vary depending upon time, equipment, and material ultimately required to perform these services. Freedom from infringement of patents of Schlumberger or others is not to be inferred. . Mark of Schlumberger Client Well String District Country Loadcase : UNOCAL Red #2 3,5 Kenai USA 3,5inch Production Casing (a) Section 1 . well Configuration Stage Rig Type Mud line Total MD BHST Bit Size o o o .,.. o o o <:J:J o o o N ft o (x 1000) Wef! Lithology Red 112ÿrelim.Gfw; 08,05,2004; ~oadCase 3,5inch Production Casing (a) ; Version wcs,cem44_1 04 e Client Well String District Country Loadcase : UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) Previous String OD Weight ID Ibltt 26.0 Drill Pipe ID Grade Liner Hanger : 4000.0 ft Landing Collar MD : 10257.0 ft Casing/liner Shoe MD : 10337.0 ft OD Casing/Liner Weight ID Grade Ib/ft 9.2 L-80 Mean OH Diameter : 6.125 in Mean Annular Excess : 15.0 % Mean OH Equivalent Diameter: 6.427 in Total OH Volume : 234.2 bbl (including excess) Max. Deviation Angle : 30 deg Max. DLS : 3.000 deg/100ft Formation Data Pore Name si/ft 0.433 MD ft Geothermal Tem erature Profile TVD Temperature Gradient ft de F de F/100ft 0.0 0.0 4346.3 0.8 5998.5 1.0 8397.6 1.1 8475.9 1.1 9513.4 1.1 0.0 4600.0 6500.0 9200.0 9280.0 10337.0 S-135 Collapse si 10530 e Sc~llD.rger Collapse si 13800 Burst Thread si 10160 BTCM Lithology Sandstone Page 3 Red #2yrelim.cfw; 08-05-2004; LoadCase 3.5inch Production Casing (a); Version wcs·cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) Sâl..rger Section 2: fluid description CW 101 DESIGN Fluid No: 2 Rheo. Model At temp. Density : 8.31 Ib/gal : NEWTONIAN : 80 degF Viscosity : 5.000 cP Gel Strength : (lbf/100ft2) Job volume : 20.0 bbl MUDPUSH II DESIGN Fluid No: 3 Rheo. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength : 10.50 Ib/gal : 22.000 cP : 22.00 Ibf/100ft2 : (lbf/100ft2) Job volume : 55.0 bbl #4 Base Oil DESIGN Fluid No: 4 Rheo. Model At temp. Density : 7.40 Ib/gal : NEWTONIAN : 80 degF Viscosity : 4.000 cP Gel Strength : (lbf/100ft2) MUD Mud Type : OBM Water Type : Fresh VOLUME FRACTION Solids : 0.0 % Oil : 100.0 % Water : 0.0 % Job volume : 97.8 bbl LiteCRETE DESIGN Fluid No: 5 Rheo. Model At temp. : BINGHAM : 80 degF Density Pv Ty Gel Strength : 12.00 Ib/gal : 92.092 cP : 12.39 Ibf/100ft2 : (lbf/100ft2) DESIGN BLEND Name : 12# LiteCRET Dry Density : 112.13 Iblft3 Sack Weight: 151 Ib BASE FLUID Type : Fresh water SLURRY Mix Fluid Yield Porosity Job VOlume~' O.O,bbl Quantity 434.ft6 sk Sold Fcact; y' 55.4 % Density : 8.32 Ib/gaJ Base Fluid : 8.090 gallsk Page 4 Red #2yrelim.cfw; 08-05-2004; LoadCase 3.5inch Production Casing (a); Version wcs-cem44_104 e e Client Well String District Country Loadcase : UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) Sc~I.lIerger Additives Code Cone. Function 0047 0.100 gal/sk blend ANTI FOAM 0065 0.750 %BWOC DISPERSANT 0800 0.200 %BWOC RETARDER C359 0.025 %BWOC Viscosifier Thickening Time Schedule 9.20- 2 Schedule ( ) 100 Bc at 03:51 hr:mn Compressive Strength (psi) at (hr:mn) Section 3: pumping schedule Start Job: Ensure that hole and mud are properly conditioned as per program Pumping Schedule Name Flow Rate Volume Stage Time Cum.Vol Inj. Comments (bbl/min) (bbl) (min) (bbl). Temp. (deç¡F) CW101 5.0 5.0 1.0 5.0 80 Fluid pack lines Pause 0.0 0.0 0.0 0.0 80 Pressure Test Lines CW101 5.0 15.0 3.0 20.0 80 Start Pumping Wash MUDPUSH II 5.0 55.0 11.0 55.0 80 Start Pumping Spacer LiteCRETE 5.0 190.0 38.0 190.0 80 Start Mixing Lead Slurry Pause 0.0 0.0 5.0 0.0 80 Drop Dart #4 Base Oil 5.0 97.8 19.6 97.8 80 Start Displacement Shut-In 0.0 0.0 20.0 0.0 80 Set Packer Total 01:17 362.7bbl hr:mn End Job: Record returns to surface and plug bumping. Dynamic Security Checks: Frac 568 psi Pore 215 psi Collapse 8650 psi Burst 8189 psi at 4500.0 ft at 4500.0 ft at 10257.0 ft at 4000.0 ft Section 4: fluid se uence Original fluid Mud pv : 15.000 cP 97.8 bbl 43.3 bbl 362.7 bbl 3500.0 ft 9.50 Ib/gal Ty : 18.00 Ibf/100ft2 Displacement Volume Drill Pipe Volume Total Volume TOC Page 5 Red #2yrelim.ctw; 08-05-2004; loadCase 3.5inch Production Casing (a) ; Version wcs-cem44_104 Name Q) ..... \1$ (t :t o ¡:¡:o o Client Well String District Country Loadcase ; UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) Volume (bbl 20.0 55.0 190.0 97.8 Rheology viscosity:5.000 cP Pv:22.000 pv:92.092 cp viscosit :4.000 cP CW 101 MUDPUSH II LiteCRETE #4 Base Oil - c._..¡;.. Frac Pore Collapse Burst Csq.Pump out "''''""Ir. 807 psi 436 psi 8650 psi 10160 psi 37 ton at 4500.0 ft at 45QO.0 ft at 1 0257.Q ft at 10257.0 ft M o Time (min) o .... (mín) ; LoadCase 3.5inch Production Casing (a); Version wcs-cem44~104 - Client Well String District Country Loadcase CemCAÐE ft o (__ ~ o ~I ~ ~ ~ c o ~ > :<i :? ~ ü c o ~ "' o ä: ~ g " <0 . . ~ ~ o ~ 15 ~ s ~ >;:' "' . a: o o o C\J UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) '* Fluid Sequence 7.5 Ib/gal 10.0 12.5 Hydrostatic Max. Dynanic Pore Dynamic Well Security 20.0 bbl 8.3t Ib/gal Newtonian: Visco. 5.000 cP 55.0 bbJ to.50 Ib/gal Bingham: FN ~ 22.000 cP Ty ~ 22.00 Ibf/tOOlt2 t 90.0 bbl 12.00 Ib/gal Bingham: FN ~ 92.092 cP Ty ~ t2.391bf/100ft2 Client Well String District Country : UNOCAL : Red #2 : 3.5" Production : Kenai : USA Total Depth ~ 10337.0 It Top of Cement ~ 3500.0 ft 9.50 Ib/gal Bingham: FN 97.8 bbl 7.40 Ib/gal Newtonian: Visco. ~ 4.000 cP ~ t5.000 cP Ty ~ 18.00 1bf/100ft2 'Mark of Schlumberger Production Casing (a) ; Versipn Wcs-cem44_104 7 Client Well String District Country Loadcase : to ;! C') (¡j ~ () :s (f) 8J à: ¿ t:: « 0 00 0 " '" 0 (\j 0 ~ ê 0 ~ ~ .2:> 0 g ;:' c;¡ > ¿ 0 c: « '" g- o '" 0 0 UNOCAL Red #2 3.5 Kenai USA 3.5inch Production Casing (a) o 30 60 90 Tim e (m in) Time (min) 9 0 Production Casing (a) ; Version wcs-cem44.J04 8 I Halliburton BAROID e UNOCAL e Mud Program ! BAn 0 r 0 UNOCAL Red #2 Kenai Peninsula, Alaska Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Higbie Reviewed by Don Shaw I John Rose Customer Approval Rob Stinson Version No: Date: 1.0 August 05, 2004 Red #2 v1.0 08/05//04 Halliburton BAROID UNOCAL Mud Program Red #2 Exploration Introduction: The following mud program was prepared for an exploration well on the Kenai Peninsula, Alaska. This well will be spudded with a 6% KCI drilling fluid and be drilled vertically to the 1,500' MD range. It will be drilled with a 12 W' hole size, cased with 9 5/8" and cemented. The surface casing will be drilled out with the existing mud system. The 8 W' interval will then be drilled building to 30° by section TD at -4,500' MD. Seven inch casing will be run and cemented at this depth. The 7" will be drilled out with an INVERMUL system and a leak off performed. A 6 1/8" hole will be directionally drilled holding 26° to 8,348' then dropping to 11 ° by 9,278' MD (-8,474' TVD). The well will then TD at 10,337'. A 3 ~" production liner will then be run and cemented in place. Spud the well with a 6% KCI/PHPA mud - 8.6 ppg. The mud weight will then be held in the 8.6 - 8.9 ppg mud weight range to the surface hole TD unless hole conditions dictate otherwise. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide waste minimization and effective wellbore stabilization, ionic inhibition (KCI),and polymer encapsulation (PHPA). This same 6% KCI/PHPA mud will be maintained through the intermediate interval. This mud offers good LCM responses if losses are encountered. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for lost circulation. The production interval will begin with an 80/20 OWR (if available) used oil base fluid. The ratio will then slowly be raised to 90/10 by TD' to reduce rheological parameters. CaCI levels will be maintained in the 29-32% (290,000 - 320,000 ppm WPS) range. The mud weight will be held in the 9.2 -9.8 ppg range or as required for hole stability. Primary Drillina Obiectives: · Zero fluid related HSE incidents · Achieve wellbore stability · Achieve good hole cleaning considering hole angle, geometry and anticipated ROP rates · Lost circulation mitigation/control · Achieve good Zonal Isolation as per plan · Achieve minimal formation damage . Minimize fluids related NPT · Minimize drilling wastes Critical Fluid Issues: · Eliminating/controlling losses. · Maintaining a low ECD in the production zone to reduce risk of lost returns. . Maintaining a stable well bore through coal seams. · Reducing drilling wastes with the inhibited drilling fluid system. Red #2 v1.0 2 08/05//04 I Halliburton BAROID Well Specifics: e 'Ud Program UNOCAL MD TVD Footage -1500' 1500' 1500' -4500' 4259' 3000' 1 0337' 9514' 7337' Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud Pro erties: 0-1500' Yield Point 25 - 40 System Formulation: Product Water KCI KOH Barazan 0 EZ Mud DP Aldacide G Saracor 700 Barascav 0 Plastic Viscosity 6 - 16 APIFL N/C e!:!. 8.5-9.0 6%KCI, EZ Mud Concentration 0.905 bbl 20 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25-1.5 ppb (as required 35 YP) 0.75 ppb 0.1 ppb 1 ppb 0.5 b add as the well suds Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Concerns and Continaencies Surface Interval - ( 0 - 1.500' MD ) Mud Type: 1. Mud weight: 2. Rheology: 3. Filtrate control: 6 % KCI/PHPA Maintain the 8.6 - 8.9 ppg density or as directed. Maintain a YP between 25 - 40 or as needed to achieve adequate hole cleaning.. No filtrate control is required prior to reaching 1500' MD. Additions BDF-263 may be required to control screen blinding/bit balling. Seepage losses in this interval can be controlled with additions of 3-5 ppb BAROFIBRE or by dedicated LCM pills but are unlikely to occur. Operations Summary: This section will drill a 12 'W' hole. Build the 6% KCI fluid in the proper order of addition. Maintain a reduced pit volume during spud as losses are not expected in this section. Be prepared for sloughing gravels in the upper interval; increasing the system rheology with BARAZAN-D/N-Vis will assist in bringing this material out of the well, as will pumping dedicated high-viscosity sweeps. It is recommended that the pump rate be increased to the maximum practical rate while the hole is unloading gravel. Sweep Formulation: 30 barrels mud (500' annular coverage) , add ca. 1.0 ppb BARAZAN D to achieve a tauO > 25. When penetrating high-clay content sections additions of BDF-263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Red #2 v1.0 3 08/05/104 Halliburton BAROID UNOCAL Mud Program Be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates and cuttings size. At TD, a Wallnut (20 bbl pill with 15 ppb of Wallnut F) or carbide "flag" should be pumped to gauge hole washout and to calculate the required cement volume. The cement will then be pumped and drilling mud will be used to bump the plug. Pretreat this chase mud with 1 ppb Bicarb and 0.5 ppb citric acid. Hazards I Concerns - Surface Interval: · Preventing lost circulation through ECD management. · Optimize solids control equipment to maintain density, sand content, and reduce the waste stream. · Maintain YP between 25 - 40 to optimize hole cleaning and to control ECD. · Pump high viscosity sweeps to enhance hole-cleaning efforts. Monitor sweep effectiveness. · Successfully cement casing. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 550 600 650 80 rpm 179 206 230 100 rpm 179 206 230 Baroid's recommended flowrate for this interval is 550-650 gpm to maximize hole cleaning at high penetration rates. RPM's have no effect on hole cleaning in this vertical section. Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud Pro erties: 1,500 - 4500' Plastic Viscosity 6 - 15 Yield Point 13 - 20 APIFL <8 Iili 8.5-9.5 G System Formulation: Product Water KCI KOH Barazan 0 Dextrid EZ Mud DP Aldacide G Baracor 700 Barascav 0 6%KCI, EZ Mud Concentration 0.905 bbl 19.8 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25 ppb (as required 35 YP) 1-2 ppb 0.75 ppb 0.1 ppb 1 ppb 0.5 b maintain er dilution rate Special Mixing Instructions: . Mix in order as listed . Add polymers slowly to minimize fisheyes. Red #2 v1.0 4 08/05//04 e I Halliburton BAROID Concerns and Continaencies UNOCAL e Mud Program Intermediate Interval - ( 1500 - 4500' MD ) Mud Type: 6 % KCI/PHPA 1. Mud weight: 2. Rheology: 3. Filtrate control: Maintain the 8.9 - 9.2 ppg density or as directed. Maintain a YP between 13-20 or as needed to achieve adequate hole cleaning. Add Dextrid and/or Pac L to reduce filtrate to the <8 cc/30 min range. Additions of BDF-263 may be required to control screen blinding/BHA balling. Losses in this interval can be controlled with additions of 1-2 ppb BAROFIBRE and 1-2 ppb of Baracarb 50 or by dedicated LCM pills; see appendix for LCM decision tree. Operations Summary: Drill out the cement/casing with the existing mud system. Bicarb or soda ash and citric acid should be used to pretreat for any negative effects of the cement. BARAZAN-D/N-Vis should be used to maintain rheological parameters. Maintain the mud as clean as possible while drilling. Should sweeps be required a high viscosity sweep is recommended. This sweep will help clean the hole with no neQative impacts on system mud weiQht or rheoloQY. Daily additions of Aldacide G and/or X-Cide 207 should be made to control bacterial action. Sweep Formulation: 25 bbl of mud with 1 ppb of Barazan added. Dextrid and/or PAC L should be used for filtrate control. While drilling, monitor the torque and drag to determine if liquid lubricant is required. When penetrating high-clay content sections additions of BDF- 263 ester are recommended to reduce the incidence of bit balling and shaker blinding. Maintain the pH in the 8.5 - 9.5 range with caustic soda. The system rheology may be relaxed as hole conditions allow. This will lower the ECD for any weak zones which are encountered. However, be prepared to increase the YP if hole cleaning becomes an issue. Run DFG (Drilling Fluid Graphics) to confirm hole cleaning efficiency based on current rheology, flow rates, angle and cuttings size. Ensure that the mud weight is maintained as low as possible through this area. However this is an exploration well so monitor all kick warning signs at all times. Stress slow pipe movement to the drillers to reduce surge/swab on this fragile zone. Stage pumps on slowly after connections and begin rotation prior to pumping (this will break the gels and reduce the pressure required to break the gels). Should all these efforts fail and losses occur, please refer to the LCM decision tree appendix. If the losses are still high (above 30 bbl/hr static) after attempting an LCM pill, STOP running the fluid as a KCI/EZ Mud system. All additions of these products should be halted and allow the system to slowly break back to an LSND system. Run the fluid loss and rheology as with the inhibited system. When running the LSND, stop addtions of Baracor and Barascav D when the chlorides drop below 6,000 ppm's. All pit monitoring devices should be watched closely as this zone is cut. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 450 500 550 80 r m 184 209 235 90 r m 201 228 258 Baroid recommends a flowrate in the 500-550 gpm range to maximize hole cleaning efficiencies at these high penetration rates. However if losses occur, the flow rate can be reduced in conjunction with a slower penetration rate which would reduce the ECD/losses. Red #2 v1.0 5 08/05//04 Halliburton BAROID UNOCAL Mud Program Reduce system YP with Therma Thin as required for running casing as allowed (do not jeopardize hole conditions). Run casing carefully to minimize surge and swab pressures. Reduce the system rheology once the casing is landed to a YP < 20 ( check with the cementers to see what yp value they have targeted). The plug will be bumped with mud. If operations allow, the plug can be bumped with OBM. Hazards I Concerns -Intermediate Interval: · Preventing lost circulation. · Optimize solids control equipment to maintain density and sand content. · Maintain YP between 13-20 to optimize hole cleaning and to control ECO. · Pump high viscosity or Barolift sweeps to enhance hole-cleaning efforts. · Successfully land and cement casing. Production Hole Recommendations System Formulation Product Concentration Base Oil 0.696 bbl EZ MUL NT 4 ppb INVERMUL 4 ppb GEL TONE V 4 ppb Lime 5ppb DURA TONE 4 ppb RM63 0.5 ppb Water 0.178 bbl CaCI2 24.6 ppb AK-70 4 ppb BAROID to a 9.2 PPQ Mud Type: Invermul System Mud Pro erties PV YP ES HTHP FL 4500 - 9,337 18 - 29 9 -18 1000- <6 1100 Additional mud weight may be required for effective coal/ shale stabilization or for gas shows. WPS 290 to 320K 80/20 o/W · Concerns and Continaencies Production Interval (61/8" hole. 3.5" casina ): 4500' MD - TD Mud Type: 1. Mud weight: 9.2 ppg INVERMUL System. 2. Rheology: Maintain the density at 9.2 ppg or as directed; use solids control and whole mud dilution. Increase density as required for well control, hole stability or coal sloughing. Maximize solids control usage. A 9.2 ppg was used at this wells TVO on Red #1. Maintain a YP between 9 and 18. Pump high viscosity sweeps throughout the interval as needed, particularly prior to POH for casing. Optimized mud rheology and flow rate will be the primary mechanisms for achieving hole cleaning in this deviated well bore. Maximize pipe rotation (ideally ~ 60 RPM). 3. Other issues: The use of good drilling practices to minimize excessive swab and surge pressure should be employed to minimize the chances for losses and differential sticking. Please see the Coal Drilling recommendations attachment. Red #2 v1.0 6 08/05//04 e I Halliburton SAROID Operations Summary: The water base mud system will be displaced prior to drilling cement (unless operations can be worked out to bump the plug with the Invermul). Approximately 600 bbls of oil mud will be required for displacement. Used mud is available so it will be reconditioned at the rig and displaced into the wellbore. Prepare the pit system for the INVERMUL as follows: UNOCAL e Mud Program · Clean pits, solids control equipment, all lines and pumps. · Flush all lines with a small volume of oil and discard. · Disconnect all water lines to the pit area and rig floor. · Check all steam fittings in pit room for leaks and repair as needed. Once the shoe has been drilled, displace the well to the ENVIROMUL system designated for this interval of the well. Pump the following spacers ahead of the oil mud as follows (for Nabors 129): Spacer Formulations: · 30 barrels of water · 30 bbls of base oil · Follow with the INVERMUL mud system. Displacement procedure: · Monitor pump strokes to obtain correct displacement. . Maintain maximum pump rates. · Have the bit on bottom as the oil mud exits the bit. · Reciprocate the drill string by one joint every 15 minutes · Rotate the pipe as rapidly as allowed during the actual displacement. · Do not shut down during the displacement. · Use an E.S. meter at the flow line to determine when the fluid is water free enough to start taking the returns back into the system. An ES of 300-500 should be sufficient to indicate when displacement is complete. A retort should also be run at this time to confirm fluid quality. · Clean possum belly and any troughs which were used. Maintenance: 1. Additions of Geltone V and RM-63 will maintain/modify the system rheology to a YP between 9 and 18 to provide effective hole cleaning while controlling ECD and surge/swab pressures. Run the rheology checks at flowline temp until-6800' then at 120°F to TD. This will give a more accurate reflection as to the rheology the hole is experiencing. 2. OMC 2 and OMC 42 will be available to condition (thin) the mud as required; however, caution should be used when using these oil mud thinners (particularly the OMC-2) to avoid over-thinning the system. 3. Drill this interval with a tight OURATONE HT / AK-70 filtration mechanism « 6 cc/30 min @ 2000 F). Barab/ok and Barotrol will also be available to improve the filtration control mechanism. 4. For formation bridging/LCM, graded calcium carbonate (Baracarb(s», cellulose fiber material (Barofibre) and SteelSeal are available. 5. The electrical stability of the mud should be run in the 1000-1100 volt range with INVERMUL and EZ MUL as the primary and secondary emulsifiers. DRIL TREAT will be available as an effective wetting agent, if needed. One drum of Oriltreat should be ran in slowly while weighting. 6. Maintain the water phase salinity between 290,000 - 320,000 mgll range with sack calcium chloride. This level of salinity will provide an effective mechanism for good wellbore stabilization. Red #2 v1.0 7 08/05//04 I Halliburton BAROID e UNOCAL 'Ud Program 7. The excess lime content will be maintained in the 3 ppb range to provide an effective reserve alkalinity source and to improve the emulsion stability of the mud system. 8. The initial oil:water ratio will be 80:20. However if the OIW ratio is higher in the used mud do not adjust it down. From there, the system will be maintained with base oil allowing the ratio to drift to the 90: 1 0 range by TD. This will help reduce the cost of the original fluid and then help control rheology/ECD's with the 90: 10 ratio in the lower depths of the well. Suggested Drilling Parameters Pump rate and drill string rotation should be optimized through the real-time use of the DFG software for the actual Rap while drilling. The table below highlights the maximum Rap recommendations above which hole cleaning will become an issue. Maximum Acceptable ROP in fph at Specified GPM and RPM GPM~ 200 250 300 60 rpm 172 196 227 80 rpm 184 221 260 ROP rates above these levels or with no (sliding) or low rpm will require an increased frequency of the following remedial hole cleaning practices: · wiper trips · back reaming · extended periods of circulation (with maximum pipe rpm, targeting> 80 rpm) · hole cleaning sweeps (change flow regime of base mud by using fibers, density or rheology for carrying capacity) · connection practices - employing extended gpm, rpm and back reaming during the connection Sweeos Two types of hole cleaning sweeps can be used if the high vis sweeps are inadequate: . Increase the sweep density with SWEEPWATE to 2 ppg over system density. The SWEEPWATE will increase the sweep carrying capacity yet will be removed at the shakers; this will result in no density increase from running weighted sweeps. · To reduce the density/viscosity build up in the system, sweeps can be built by adding 0.25 ppb BAROLlFT in place of clay. The fibrous BAROLlFT will be removed at the shakers. Note: Properly size all sweeps for 300 - 400 ft of annular coverage Supplement the hole cleaning of the drilling fluid as dictated by hole cleaning indications. Monitor all sweeps pumped and report on their effectiveness. Maximize drill pipe rotation at high rates on a frequent basis (particularly during connections) to assist in disturbing any potential cuttings accumulations down- hole. The objective of the sweep is to change the flow characteristics / carrying capacity that is inherent with the mud system. Select sweep type accordingly. Coal Drilling The following lessons were learned from extensive experience drilling coal seams in Cook Inlet. The hole stability risks when drilling coal seams are often high, and the fluid design and drilling operations have been optimized to combine reduced risk with reduced costs. The need for good planning and drilling practices is also emphasized as a key component for success. . Keep the drill pipe in tension to prevent a whipping effect which can disturb coal sections. . Use asphalt-type additives to further stabilize coal seams. Red #2 v1.0 8 08/05//04 e . I Halliburton BAROID UNOCAL lJIud Program · Increase fluid density as required to control the running coal. · Emphasize good hole cleaning through hydraulics, ROP and system rheology. In the event that sloughing coal is encountered, consider spotting a 30 ppb BAROTROL pill across the coal seam. The pill can be safely "squeezed" into the coal by closing the bag and applying pressure not to exceed the total annular pressure loss ( based on ECD values using the DFG software). System density increases can also be employed in increments of 0.5 ppg. Solids Control Equipment Maximize the use of all solids control equipment to ensure that the solids content of the system is kept to a minimum during this interval. 1. Run the shale shakers with as fine a screen size as possible. · Size shakers screens with coarse mesh initially · Adjust screen size as solids loading, mud rheology and flowrates allow · Inspect the shakers frequently, taking time to repair / replace damaged screens 2. Maximize the use of the centrifuge, keeping the fluid as clean as possible. Running Casing I Cementing Preparation Monitor hole fill/returns closely while running the liner to insure losses haven't occurred. Refer to Baroid's DFG+ program if calculated surge/swab values are needed. Condition the mud prior to the cement job. Displace the cement with base diesel oil - ensure availability. Production Hole· Hazards I Concerns: · Optimize solids control equipment to minimize colloidal solids build up and dilution requirements. · Maintain flow profile based on PV, YP and tauo flow parameters. · Pump sweeps as required to enhance hole-cleaning efforts. Monitor the effectiveness of any sweeps pumped. No sweeps have been needed in this hole section to date on the Happy Valley wells. · Follow the hole cleaning guidelines to assist in drilling parameter selection. Use connections for high RPM and pump rate support when these parameters are limited during drilling operations. · Follow the coal drilling guidelines. Estimated Fluid Costs: 12 \I.¡" Surface 19,000 8 W'lntennediate 14,000 6 1/8" Production OBM 46,000 Total $79,000 **The P-50 estimate assumes 800 bbls of reconditioned oil mud to be used. 31,000 19,000 78,000** $128,000 38,000 50,000 165,000 $253,000 Red #2 v1.0 9 08/05//04 Halliburton BAROJD Losses Red #2 v1.0 08/05//04 UNOCAL Mud Program UNOCAL Lost Circulation Decision Tree fllnhibited Mud Systems Seepage Partial Severe Total 15-60 bbl/hr 5·10 bbl/hr Static Static 60·200 bbllhr Static > 200 bbllhr Static Treat Active System Treat Active System with 5 sxlhr Barofibre with 10 sxlhr Barofibre Pump Gunk Squeeze pill to allow POH 100 ppb LCMlMud Pill: (Volume to be 20 ppb Baroseal F determined based 20 ppb Baroseal M upon losses 30 ppb Barofibre 20 ppb Wallnut M 10 ppb Wallnut F Contact Drilling No Engineer or Engineer oneall 70 ppb LCM/Mud Pill: 20 ppb Baroseal F Pump Gunk POH, PU dumb iron 20 ppb Baroseal M Squeeze pill BHA 20 ppb Barofibre (Volume to be 10 ppb Wallnut M determined based upon losses) Consider cement I plugback contingency 40 ppb LCMlMud Pill: 10 ppb Baroseal F Pump Gunk 10 ppb Baroseal M Squeeze pill 10 ppb Barofibre No 10 ppb Wallnut M Contact Drilling Engineer or Engineer Notes: on eall to determine if 1) Drill across fault or loss zone 1.5·2.0 times the length of the additional LCM throw before spotting Gunk Squeeze. treatments are to be 2) PBL sub should be run in BHA to spot pills if 'Partial Loss' cases or made or to proceed to above are anticipated prior to drilling to allow the spotting of LCM Gunk Squeeze pill pills. 3) LCM pill volume = 300'-600' column based upon actual hole No diameter. 4)PR/OR TO ANY LCM PILL, APPROPRIATE DISCUSSIONS AT Proceed to 'Partial THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR Losses' Pill PLUGGING THE DRILL STRING. 10 e e Mud Program I Halliburton BAROID UNOCAL Seepage Partial Severe Total 20-60 bbllhr 5·20 bbllhr Static Static 60·200 bbllhr Static > 200 bbllhr Static Treat Active System Treat Active System with 5 sxlhr Baracarb with 10 sxlhr Baracarb 50/150 150 Pump reverse gunk squeeze pill to allow 100 ppb LCMlMud Pill: POH (Volume to be 20 ppb Baroseal f Pump reverse determined based 20 ppb Baracarb 50 gunk squeeze pill upon losses 30 ppb Barofibre to allow POH 20 ppb SteelSeal (Volume to be Contact Drilling No 10 ppb Baracarb 150 No determined based Engineer or Engineer Increase Treatment to upon losses) on call 10 sxlhr Baracarb 501 50 ppb LCM/Mud Pill: 150 20 bbls Base mud 10 ppb Baracarb 25 20 ppb Baracarb 50 20 ppb Baracarb 150 Plan to pump a second 50-80 bbl reverse gunk squeeze pill ~ massive No losses continue. Pump reverse Consider cement I 20 ppb LCM/Mud Pill: gunk squeeze pill plugback contingency (Volume to be 20 bbls base mud determined based 10 ppb Baracarb 50 upon losses 10 ppb Baracarb 150 No . Contact the Engineer 1)UNOCAL must approve any steps past PARTIAL losses. on call to determine ~ 2) Drill aaoss fautt or loss zone 1.5 - 2.0 times the length of the additional LCM throw before spotting reverse gunk squeeze pills. treatments are to be 3) PBl sub should be run in BHA to spot pills if 'Partial loss' cases or above are anticipated prior to drilling to allow the spotting of lCM made or to proceed to pills. reverse gunk squeeze 4) lCM pill volume = 300'-600' column based upon actual hole pill diameter. 5)PRIOR TO ANY lCM PIll, APPROPRIATE DISCUSSIONS AT No THE RIG MUST BE MADE TO MINIMIZE THE POTENTIAL FOR PLUGGING THE DRill STRING. Proceed to 'Partial Losses' Pill Losses Red #2 v1.0 08/05//04 UNOCAL Lost Circulation Decision Tree fl Payzone Mud Systems II BAROID Surface Modeling UNOCAL ROP = 150 It/hr' Mud Weight ~!gal CuUingDia, =,25~ R·1 $@150lt!hr·100rpm!HC.100rpm'5m!C=1m! I 5 10 15 20 25 Ü 50 1000 78 157 ~hrrllT rimp Rotation has no effect in this vertical hole section. Good hole cleaning with low ECD's can be found in the 550 to 650 gpm range. r---- BAROID Intermediate Modeling UNOCAL 1000 KCI/EZ Mud Flow Rate:: 500 gal/~n ROP :: 150 ft/hr Mud W'eigh~ :: 9.21b1gal CuUing Dia. :: .2 in R·1 s@150ft/hr·90rpm/HC·80rpm·5m/C::3m/ 2000 3000 4000 8.6 in 5 10 15 20 250 50 1000 216 432 30 60 00 9.10 9.60 k hr rllT fÎrIiP Ib/gal 500 to 550 gpm will provide excellent hole cleaning while keeping the ECD in the 9.7 ppg range. BAROID Production Modeling 1000 UNOCAl ROP:: 1251t/hr Culling DÎa, I HC· 60 rpm·5m I C::3m I 2000 3000 4000 5000 6000 7000 8000 9000 1 ??oo The pump rate can be dropped to 250 gpm and still clean the hole effectively while staying in the 10.5 ppg ECD range. 60 rpm's is the minimum which should be used. - CITIBANK DELAWARE A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 311 UNOCAL Uníon Accounts e 2007809 Pay One Hundred Dollars And 00 Cents*************************************************************** To the order of STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE, AK 99501 United States III 200780 gill 1:0 ~ . .00 20 gl: Date 06-AUG-04 Void afteï six months from ~~ -~ -- ~ g ¡. ¡. 8 ¡. ~ 7111 e *********100.00 D.A. PAGE 11;['\ 0,. (¡¡"lIV j,~t.ß(,J 0 LJ'J4 e e TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~ . PTD# ZD~-118 Development Service Z- ~XPIoration Stratigraphic CHECK WBA T ADD-ONS ~'CLVEn APPLIES (OPTJON~) MULTI The permit is for a new weJlbore segment of LATERAL existing well , Permit No, API No. . (If API num ber Production. should continue to be reported as Jast two (2) digits a function 'of the originaJ API number stated are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(f), aU (PH) records, data and logs acquired for the piJot hoJe must be dearly differentiated în both name (name on permit plus PH) .' and API Dumber (SO - 70/80) from records, data and Jogs acquired for we)) (name on permit). SPACING The permit is approved subject ·to full EXCEPTION compliance with 20 AAC 25.0SS~ Approval to perforate and produce is contingent upon issuance of ~ conservation order approving a spacing e]: ception. (Companv Name) assumes the liability of any protest to tbe spacing .exception that may occur. DRY DITCH AU dry ditcb sample sets submitted to tbe SAMPLE Commission must be in no greater ·tban 3D' sampJe intervals from below tbe permafrost or from where samples are first caugbt aDd ] 0' sample inter:vals througb target zones. J I..'" /2 , ~ Ú><\ -1/l 0-7 '.¿J(- ~/¿~'- F1~ O~~~~ g,t:l~: Well Name: RED 2 Program Well bore seg D _GeoArea ~ Uni On/Off Shore On Annular Disposal D - - - - - - - - - - Surface IpcaJiOI1 in APL ;390514; top- Rrod.uctive inJelilal ªlldTD il"l ADt. 389221.. . . . - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ E;J(pJoraJory welt . . - - - - 8DL 38.922t & ªdjaceotJease ADL 388209 comprise. Sec.. ï'; both aœ 100% Unocal ownership &JOO%state laodownen~hiR. .11'1 shaJlowe.st Ray ~one, separation.wilt be -3,800'.. . first welUo SecJioll 1. . - - - - - - - - - Prpper ÞOlld.nurnÞerJs 08.6.S to;35t5~06 BCM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - e - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - ~ - - - - . - - - - - - - - - - - - - - - - . - - - - - - - - - - - - - -- - - - - - 16"@6ï".. . - - - - - - - - - - - - - 8de~lIate excess. . . . . . - - - - - - - - -- - - -- - - - - Nabws t29. - - - - - - - - - New welt - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - . - - 12" yent lilleJequested.. . MªxMW.9J8RP9. , - - - - - - - - - - e Testto3500.RSi. .MSf> 3168 psi.. ' . . . . - - - - - - - - - - - - - -- - - - - - - - - - - - - -- WelJ wiJI be rnudlogged from '150,0' to TD~ 1:12S. dete.ctors. will be, il"l place. & functipl"lal SRud Jo TO.. . tm.lTJediately.adiacent well, Re.d ,1h.ad no shallow ga.s& Ilormal preS$we, grªd.ient surface to TO.. KS.tin$on8161Q.4 ShaJlow bazards analysis fOJ adjªœnl well Red '1 show.ed no shaJlow gas .hazards, .Red '1 was verticaUo 4500'.MO. .and OQ shalJoW,~as wa~ encounteredJ Red 2 wiJI Þe vertical to 2000' MD,thend.eviate to the SW, 8t4500' MD.(4Z60' lVD),.Ihe wellS wjJl pnly be 1000'.apart. F CALIFORNIA Initial ClasslType Administration Yes 2 .Leas.e .number .apRrORriate. . Yes 3 ~U.nlque welln.arne.and ou.mb.er . . . . . . . . . . . . Yes 4 Well located in a d.efjne.d.pool. . . No. 5 WeJIJQcaled prpper .dlstançe from drjJling unilb.ouodary Yes 6 Well IQcated properdlstance. from Qther welJs. . Yes 7 .S,ufficient .acreª~e.aYªilable indriUiog unjt. - - - - · . Yes 8 If.deviªted. js, weJlbQre plalincJuded . Yes 9 .Oper.ator ollly: affected party, . Yes 10 .Operator has.approprlate.b.ond inJorce. . . . . . . . . . . ' ..... . .Yes 11 Permil c.an be lssued without conservation order. . . .Yes Appr Date 12 Permit c.an be lSSlled withQut adlTJioistratÎ\le.apprpval · . Yes SFD 8/6/2004 13 Can permit be approved before 15-day wait Yes 14 We.ll Jocaled within ªrea ªndstrata .authQrized by.ll"ljectiol"l Ord.er # (put.IO# in. cprnrn.eots), (For ,NA 15 All welJs.witJ1in.114.mite.area.of review jdeotlfied (Fo(!!.ervjœ-weU Ollly:). . . . . . . . . . . . . . . .NA 16 Pre-produs.:ed injector; .dllrat.ionof pre-productipo less, thªn. 3. mootbs. (For.servlce well only) . . NA 17 ,A{;MPF]odjng ,of CQn,si~tency.h,as bee.nj~sued. for. this pr,oiect . NA - Engineering 18 ,C.Qnductor stringpJovided . ' - ~ - - ~ - - - - - - - Yes 19 .S,urface.casing.pJQtec.t!!. alLknown. USOWS . YeS 20 .CMT. vpl adequ.ate.lo CircJJlateo.ncooductOr. & $u.rf.csg . YeS 21 CMT. vpl adequ.ate.lo tie-lnlongstring to surf çsg. No. 22 ,CMT. wil! cover,all !<OQwn .pro.ductiYe bori~ons. ' Yes 23 .C,asing designs ªd.equa.te fpr C.,T~ B.&Rermafrpst . . Yes 24 Adequate tªn.kage. or re.seI'Ye pit . . · . ,Yes 25 If.are-ørilt bas.a. tOA03 fOJ abandon.ment beeo apprQved . NA 26 Adequate.wetlbore !!.epªratio.n.propo!!.ed. . . . . . . . . . . . . . . . . . . . . . . . . . Yes 27 If.diverter required, dQes it meel regulatioos. . . No Appr Date 28 .DriUiog fluid Rrogram schematic.& eC.uip listadequate. . Yes WGA 8/9/2004 29 .BOPEs,dp .they meel regula,tioo ' - ~ - - - - Yes 30 ,BOP.EpresS ra.til"lg appropriate; ,test to (pu.t PSig in .comments). . · . Yes 31 C.hokemanjfold complies w/APIRF'-53 (May 84). . - - - - - - Yßs 32 WQrk will pcc.U( witholltoperationshutdow.n. , - - - - - - . , . Yes 33 Is presence of H2S gªs. prob.able. . . . - - -- .. No. 34 Mecha.nical.coodJtion of wellS wlthio 80R verified (For,s.ervice welJ on.ly) NA - Geology 35 Pe(mil c,an be iSSl!ed wlo hydrogen s.ulfide meaSJJres. . No. 36 .D.ata.PJeseoted on. Rote.ntial oveJpre!!.sure .zone~ . Yes Appr Date 37 .Selsrnlcanalys.is. Qf shallow gas.zpnes . . .NA SFD 8/6/2004 38 .Seabedcoodjtipo survey (if oft-shore) . ' .NA 39 . CQnta.ct oam.elphon.eJorweekly progressreRorts [exploratory .only]. NA - - Geologic Date: Engineering Date r~ Commissioner: Commissioner ner D{s 8 / ~I <1-- e e 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. RED #2 Nikolaevsk Unit Kenai Borough, Alaska L ELL T 26th, A. Jr. - Sr. Geologist Jr. - Sf'. Geologist -- UNOCALe Red #2 · TABLE OF CONTENTS WELL RESUME ......................................................................................................................................3 PROCEDURES and GENERAL DiSCUSSiON......................................................... ....... ........................5 GEOLOGICAL DiSCUSSiON................................... ....................................... ........................................6 DAILY ACTIVITY SUMMARy.... ................. ................. .................. .................. .................................. ...... 8 LITHOLOGY REVIEW ...........................................................................................................................10 SURVEYS .............................................................................................................................................24 DAILY MUD PROPERTIES........................ ................................................................................ ........... 29 BIT RECORD........................ .......... ................... .............. .................... ....................... ............ .............. 30 MORNING REPORTS ...........................................................................................................................31 · BIT RECORD ........................................................... ............................................................ APPENDIX 1 · ~ El)()C·H 2 UNOCALe Red #2 · WELL RESUME Company: Unocal Alaska Resources, Inc. Well: Red #2 Field: Nikolaevsk Unit Region: Cook Inlet Location: Section 8-T 4 S-R 13 W, SM Coordinates: 377' FNL, 458' FVVL Elevation: RKB Elevation = 694.5' County, State: Kenai Peninsula Borough, Alaska API Index: 50-231-20025-00 · Spud Date: August 14th , 2004 Total Depth: 10100' MD Contractor: Nabors Drilling Alaska Company Representative: Shane Hauck RigfType: Nabors #129/ Land Epoch Logging Unit: #30 Epoch Personnel: Brian O'Fallon Lees F. Browne Jr. Company Geologist: Mark Lynch Dave Buthman · [:I El)()C·H 3 · · · UNOCALe Red #2 Casing Data: 16" landed at 76' 9 5/8" at 1521' 7" @ 4538' Hole size: 12 %" to 1530' 8 %" to' 4550' 6 1/8" to 10100' Mud Type: Spud to 1530' LSND to 10100' Logged Interval: Full Logging under surface casing Gas Log from conductor to surface casing Schlumberger Electric Logging Co: Logs Run: #1) PEX, CMR #2) Dipole, FMI #3) Mechanical sidewall cores [:I El)()C·H 4 · · · UNOCALe Red #2 PROCEDURES and GENERAL DISCUSSION Epoch supplied a full computerized Rigwatch system (which included measurements block height, drill rate, pit volumes, pump rates, pump pressure, flow line, return flow, hook load, torque, and rotary speed) for all operations. Display monitors for the company man, tool pusher and mud engineer, and touch- screen (Azonix) displays for the driller and pit watcher provided graphics of the information. Hydrogen flame ionization (FID) Total Gas and (FID) Gas Chromatograph instruments detected and analyzed formation gases. Mud gas was continuously generated by an optimally positioned Quantitative Gas Measurement (QGMTM, Texaco patent) electrically driven gas trap, and drawn to the detectors by vacuum pump. The gas system was tested and calibrated on a regular basis. Unocal Alaska Resources, Inc. spudded Red #2 on August 14th, 2004 with Nabors Drilling Alaska #129. Epoch commenced DML TM logging on the same day at the top of the hole fill of the 16" conductor pipe at 60'. The 12%" Surface hole was drilled with water base mud from surface' to 1530' and completed on August 17th, 2004. Mud weight was 8.7 ppg and increased to 8.9 drilling interval and carbide dropped at 1530' showed at 3 bbl wash out over a gauged hole. A short trip showed a good hole and pipe was tripped to bottom with 4 units of trip gas. Casing was run to bottom with no problems. Cuttings collection and analysis commenced from under surface casing and began on August 18th, 2004. Cuttings samples were caught at 30' intervals and at smaller intervals if the drill rate allowed during high gas intervals to 8500'. Afterward, 10' samples where caught to TO' depending on the rate of penetration. The intermediate hole section was drilled with water base mud from 1530' to 4550'. A slight amount of sliding was necessary to keep and maintain a target tangent angle of approximately 3° per 100'. Mud weight was gradually increased from 8.9 ppg to 9.2 ppg. Intermediate hole was completed on August 20th, 2004, with a carbide drop showing a 8 bbl wash out over a gauged hole and casing run to bottom with no problems. The 6Ye" deep hole section commenced on August 22nd, 2004 (in a water base mud system) with continued sliding to required and maintain 1° tangent angle per 100', to hit the mid Tyonek gas sands and then to drop angle to 1°/100' in the Tyonek to the total depth. The mud weight of 9.2 ppg at the 7" shoe increased to 9.3+ - 9.4 ppg to a Total Depth, in response to connection gases and background gases. Down hole electric wireline data was obtained by a Sclumberger Service Quad-Combo Assembly. 3%" production tubing was run in the hole on 4" drill pipe, the hanger set, and the tubing string cemented on September 1st, 2004 Epoch was given its release to rig down after cementing. ~ El)()CH 5 UNOCALe Red #2 · GEOLOGICAL DISCUSSION Red #2 The primary objectives of the Red #2 were quality Tyonek Fonnation gas sands. From 1530' to 4550', the intennediate hole was drilled through the Sterting to Lower Beluga Fonnations with the interval averaging 55 units of gas, with a maximum of 254 units at 2895' in a coal. The highest gas measured from sandstone was 75 units at 2140' to 2160'. The 61/8" hole was drilled from 4550' to a total depth of 10100', included lower Beluga and Tyonek Fonnations. Gas averaged 131 units, with a maximum of 1187 units (best show): Sand and sandstone at 9287' to 9360'. The rate of penetration increased from 120 f/h to an average of 190 f/h and slowing down in the basal section to 60 fir. Drill rates were erratic throughout this zone with the maximum gas at 9315'. Lithology for this zone: (9287' - 9360') Sand/Conglomerate Sand = medium light gray to light gray, clast size ranged from coarse grains to fine upper, becoming very coarse and pebble clasts from 9320' to 9360' with gradual decrease in the ROP. Sub angular to sub rounded with moderate to high sphericity, moderate sorting in the upper sections to poor sorting in the lower, mostly unconsolidated with slight loose calcite, trace very friable sand clusters with very slight intergranular calcite, occasionally poor to moderately consolidated with calcareous cement in some finer sandstones, composed of 80% quartz and 20% black to gray to minor green and red grains including mostly silicates (chert in part) and minor lithies, estimated fair to poor porosity and penneability with no oil indicators. Other sand / sandstone show zones occurred at the followina depths with aases listed: · Show #1 from 6135' to 6190' (55') gas: 60 units to 189 max to 74 units. 40% Sand: medium light gray, clast size ranged from medium lower to very fine upper to locally scattered medium upper to coarse, subangular to subrounded, moderate to high sphericity, occurs as loose grains, estimate mostly matrix supported in soft ashy clay, estimate poorty to moderately sorted, gradational to interbedded with tuffaceous claystone and siltstone, occasional streaks dense and calcareous, composed of 70% quartz, 30% black to brownish black to gray to minor green (mostly silicates / chert) and some lithies, estimated poor to fair porosity some penneability in grain supported sands, no oil indicators. Show #2 from 6285' to 6315' (30') gas: 43 units to 228 max to 55 units. 70% sand/sandstone: medium light gray, clast size ranged from coarse lower to very fine with a larger portion of fine to medium grains, subangular to subrounded, loose grains to some variable poor to moderately well consolidated to streaks of very well consolidated, mostly grain supported in clay and calcite cement, interbedded in variable tuffaceous to carbonaceous to calcareous claystone and siltstones with some coal. Composed of 70% quartz, 30% brownish black to black to some gray to occasional greenish gray to trace tan silicates and lithies, non to very poor visible porosity in sandstone to estimated some poor to fair visible porosity in sands, no oil indicators. Show #3 from 6450' to 6530' (80') gas: 72 units to 338 max to 130 units. 40-50% Sandstone: medium light gray to light gray, clast size ranges from scattered medium to fine to very fines, angular to subrounded, friable to some moderately consolidated in ashy clay and calcite cement, grading to calcareous tuff with shard like grains, poor to moderately sorted, matrix and grain supported, 70% quartz, 30% brown to black to gray to minor green and pink silicates with coal and clay lithies, very poor to poor visible and estimated porosity, no oil indicators. · Show #4 from 6730' to 6795' (65') gas: 105 units to 568 max to 35 units. 60-80% Sand: light gray to pinkish gray, clast size ranges from medium lower to fine upper becoming coarse at 6770', sub angular to sub round, moderate sphericity becoming well developed at 6770', [:I El)()CH 6 · · · UNOCALe Red #2 impacted to chipped texture, moderate to well sorted becoming poor at 6770', sub mature to mature nature with depth, non to very slight siliceous cement, moderate clay structured matrix, mainly matrix supported with secondary grain support, composed of 90% quartz, 10% meta and various lithic fragments, fair porosity and penneability, no oil indicators. Show #5 from 8117' to 8100' (83') gas: 28 units to 413 max to 60 units. 70% Conglomerate sand to sand: medium light gray, clast size ranged from scattered pebble and some coarse to medium to fine grains, subrounded to subangular, moderate developed sphericity, moderate to poorly sorted overall, coarsening downward, composed of 80% quartz, 20% gray to black to green to pink silicates and lithics, mostly unconsolidated, some poorly to moderately to rare dense with ashy calcareous cement, very poor visible to estimated some poor to possible fair porosity, no oil indicators. Show #6 from 9730' to 9755' (25') gas: 20 units to 158 max to 27 units. 30% Sand: very light gray, clast size ranges from medium upper to very fine, sub round, moderate to well developed sphericity, poor sorting, polished texture, sub mature nature, no visible cement, abundant silt and ash structured matrix, matrix supported, composed of 90% quartz, 10% various lithic fragments, poor porosity and penneability, no oil indicators. Show #7 from 9770' to 9805' (35') gas: 20 units to 83 max to 20 units. 40-50% Sand to Conglomerate sand: very light gray, clast size ranges from very coarse to very fine, sub angular to sub round, moderate developed sphericity, poor sorting, chipped to impacted texture, sub mature nature, non to very weak siliceous cement, moderate silt and ash structured matrix, both matrix and grain supported, composed of 90% quartz and 10% various lithic fragments, poor with some fair porosity and penneability, becoming ashy with depth, no oil indicators, poor show. [:I El)()CH 7 UNOCALe Red #2 · DAILY ACTIVITY SUMMARY (Note: All daily summaries reported at 24:00:00 of listed date.) 8/14/04 Nipple up and test the diverter. Install the bails and 4" elevators. Mix spud mud and pick up 4" drill pipe. Pick up BHA and test lines to 3500 psi. Drill out hole fill to the bottom of the surface conductor pipe at 75'. Received high torque so pulled out of the hole and inspected the bit. The bit was OK and ran in the hole and attempt to drill out. No good, so circulated and condition the mud and waited on a mill bit. 8/15/04 Continue to wait on mill bit. Make up 8.5" bit and sub and drill to 92'. Pick up 12.25" string mill and open casing to 80'. Pull out ofthe hole and lay down the mill. Pick up collars and 12.25" bit. Tag up at 75' being unable to drill. Pick up a string mill and mill on casing at 75'. Pick up drilling assembly and tag up at 75'. Pick up flat mill and mill from 72' to 76'. Pick up 12.25" bit and tag up at 72'. Pull out of the hole and wait on new mill. Run in the hole with 13" tapered mill and tag the wellhead. Pull out of the hole and pick up 12.25" bit and ream through to bottom and dress the shoe. Begin to drill formation. 8/16/04 Drill formation to 1530' and circulate the hole clean. Pump out of the hole to the 5" HWDP. Run in the hole and circulate bottoms up. Carbide shows 3 bbl wash out over a gauged hole. · 8/17/04 Pulled out of the hole with no hole problems. Lay down the BHA and cleared the rig floor. Rigged and ran 9 5/8" casing string with 4' of soft hole fill on bottom. Circulated bottoms up and picked up the hanger and landed casing. Rigged up cement head and cemented the casing. Rigged up the gyro tool and ran in the hole to 1439' = .2 degrees west. Rigged down the gyro and orient and install the well head, then tested the well head to 5000 psi for 15 minutes and nippled up the BOPE. 8/18/04 Nippled up BOPE and tested the same. Had a Hawk jaw failure = rig down. Rigged down 4" test joint and picked up 3.5" test joint. Tested the upper rams and pulled the test plug. Lay down the test joint and set the wear ring. Picked up BHA and ran in the hole. Tagged cement at 1469' and drilled out the cement and 20' of new hole. Circulated bottoms up and perform a LOT to 13.7 ppg EMW and drilled new formation. 8/19/04 Drilled formation 8/20/04 Drilled formation to 4505' and circulated bottoms up and pumped a carbide pill = 8 bbl wash out. Drilled to 4507' and circulated bottoms up (TD is in a coal). Drilled to 4550' and circulated bottoms up and pulled out of the hole. Hole was tight at 4076' and had to back ream to 3600'. The hole was good from 3600' to surface. Run in the hole and circulate bottoms up and a high viscosity sweep. 8/21/04 Circulated the hole clean and pulled out ofthe hole with the hole looking good. Monitored the well and lay down the BHA. Pulled the wear bushing and prepare to run casing. Ran in the hole with 7" casing with no problems encountered. Circulated bottoms up and lay down 2 joints of casing. Picked up hanger and landing joint and made up cement head. Circulated the hole clean and pressure tested the lines to 4000 psi. Cemented as per plan and bumped the plug with drill mud. Rigged down the cementers and clean and clear the rig floor. Rig up to test the BOPE. 8/22/04 Tested the BOPE and installed the wear ring. Make up the BHA and 6 stands of HWDP. Tagged up at 4451' and drilled out the float collar, cement, shoe, rat hole and 20' of new hole. The hole was circulated clean with mud weight in and out at 9.2 ppg. Performed a LOT to 12.5 ppg EMW and started to drill new formation. · ~ El)()C·H 8 · · · UNOCALe Red #2 8/23/04 Drilled formation to 6028' and short tripped to 5366' with a few minor over pulls and no pumping. Ran in the hole with no problems and drilled ahead. 8/24/04 Drilled formation to 7598' and circulated bottoms up. Short tripped 15 stands with 30K over pull at 6786'. Back reamed from 6786' to 6781' and continued to short trip. Ran in the hole and washed the last 25' to bottom and drilled ahead. 8/25/04 Drilled formation. 8/26/04 Drilled formation to 10100' (TO). Circulated and conditioned the mud and hole and pumped a walnut flag to calculate wash out factor = 11.5 bbls over or 3.5% and pulled out of the hole for a wiper trip. 8/27/04 Finished pulling out of the hole to the shoe and tripped back into the hole. Hole was tight at 9360'. Pumped through tight spot and hit fill at 10078 and washed to bottom. Circulated and Conditioned the hole and raised the mud weight to 9.6. Pulled out of the hole for wire line logs, in which, the hole was tight at 4542' and 4550'. lay down BHA and rigged up Schlumberger and Begin to run wire line logs. 8/28/04 Pull out of the hole with wire line logs and run in the hole with second run. Can't get to bottom and pull out of the hole. Cut new drilling line and rig up for a clean out run. Trip in the hole and had 15' of fill on bottom. Circulate and condition the mud and hole with weighting up to 9.8 Ib/gal. 8129/04 Trip out of the hole and rig up and run electric logs. logs were unable to reach bottom and decision was made to stop logging. Rig up and run 3.5" liner. 8/30/04 Unable to get 3.5" casing past 9326'. Pull out of the hole and lay down tubing. Test BOPE. 8/31/04 Finished testing BOPE and pick up BHA and trip into the hole. Ream hole at 9290' and trip to bottom with 19' of fill on bottom. Circulate bottoms up five times and raised the mud weight to 10.0 Ib/ga!. Pull out of the hole to run liner. 9/1/04 Run liner to TO and cement hole. [:I El)()C·H 9 · · · UNOCALe Red #2 LITHOLOGY REVIEW RED #2 Commence logging Red #2 at 19:30 on 8/14/04 at surface with gas log to 1530' Commence sample log on 8/18/04 Tuffaceous Claystone (1560' to 1650') = medium gray; very soft; malleable to sectile; flexi to elastic; lumpy to clumpy; clustered to clotted; gelatin to mushy; pasty to tacky; slimy; non to slight cohesive to very adhesive; amorphous fracture and habit; dull earthy luster; clayey to colloidal text; Massive beds of homogeneous clay with thin beds of coal and sand. Sand (1660' to 1690') = very light gray; clast size ranges from medium upper to silt; sub angular to sub round; moderate sphericity; poor sorting; chip to impact texture; sub mature; non to very slight silica cement; grain supported with secondary matrix support; composed of 60% quartz, 10% chert, 30% dark gray metamorphic and various lithic fragment poor porosity and penneability; no oil indicators. Coal (1695' to 1735') = black to brown black in carbonaceous shale and clay; finn; earthy luster in carbonaceous clay to resinous luster in coal; matte to smooth texture; sub planar fracture; composed of very carbonaceous clay at contacts to bituminous coal at mass; visible bleeding gas in most cuttings. Tuffaceous Claystone (1740' to 1800') = light gray; soft; sectile; mushy; tacky; slimy; slightly cohesive to moderate Adhesive; earthy to sub planar fracture; sub platy habit; moderate earthy luster; clayey to gritty texture; massive beds of gradational silt and clay; composed of 70% clay, 30% silt. Tuffaceous Claystone (1810' to 1830') = light gray; soft some finn; sectile; mushy; slimy; slight cohesive to slight adhesive; sub planar fracture; sub platy habit; earthy luster; clayey to gritty texture; composed of gradational beds of tuffaceous silt and clay. Coal/Very Carbonaceous Clay and Shale (1840' to 1890') = overall black some becoming brownish black at contacts; finn; resinous with some earthy luster; matte to smooth texture; planar to blocky fracture; composed of bituminous coal to very carbonaceous shale and clay visible bleeding gas from cuttings; most cuttings are very ground up and small. Tuffaceous Siltstone (1900' to 1950') = very light gray; poor induration; crumbly; slightly sectile; mushy; tacky; Slimy; slightly cohesive to slightly adhesive; pdc bit grooved fracture and habit; bright earthy luster; silty to gritty texture; massive beds of gradational tuffaceous silts and clays; composed of 70% silt, 30% very fine grained sand some grading to very fine sandstone in parts. Tuffaceous Siltstone (1960' to 2010') = very pale orange to light brownish gray to very light gray; very poor induration crumbly; mushy to pasty; tacky to slimy; slight cohesiveness to moderate adhesiveness; earthy fracture; sub nodular habit; dull to bright earthy luster; silty to clayey texture; massive beds of gradational silt, clay and very fine grained sand. Tuffaceous Claystone (2020' to 2070') = light olive gray; soft; slightly sectile slightly malleable; mushy; tacky; slimy; slight cohesiveness; slight adhesiveness pdc bit fracture and habit; dull earthy luster; clayey texture; massive unifonn beds of tuffaceous clay; composed of 90% clay, 10% silt. Coal/Very Carbonaceous Shale (2070' to 2130') = black mottled brownish black; finn; earthy luster in carbonaceous shale to resinous luster at coal mass; matte texture; planar fracture along shale partings; composed of very carbonaceous shale and clays at contacts to lignitic coal; cuttings are very ground up; visible bleedings gas from most cuttings [1 El)()C·H 10 UNOCALe Red #2 · Conglomerate Sand (2130' to 2160') = very light gray to medium dark gray; clast size ranges from coarse upper to fine upper; sub round; moderate sphericity; poor sorting; pitted to polished texture; sub mature; no visible cement; dominant matrix support; sands are interbedded and loose; composed of 60% quartz, 10% chert, 30% dark gray metamorphic and various lithic fragment poor porosity and permeability; no oil indicators. Very Carbonaceous Shale and Clay (2170' to 2190') = black mottled brownish black brittle to firm; earthy luster grading to resinous in coals; matte texture; irregular fracture; composed of very carbonaceous shale and clay grading to lignitic coal; visible bleeding gas from most fresh coal cuttings. Tuffaceous Claystone (2200' to 2250') = medium light gray; soft; mushy to pasty; tacky to slimy; non to slight cohesive; slight adhesive; earthy fracture; sub nodular habit; moderate luster; clayey texture; massive beds of gradational tuffaceous clay stone composed of 70% clay, 10% carbonaceous material, 20% silt, pyro clastic relic shards and various detrital material. Carbonaceous Shale, clay and coal (2260' to 2310') = black mottled brownish black brittle to firm; earthy luster in carbon shale to resinous in coals; matte text; irregular to planar fracture along shale partings; composed of very carbon clay and shale grading to lignitic coal; slight visible bleeding gas from some cuttings. Tuffaceous Claystone (2320' to 2390') = medium light gray; soft; mushy some pasty; tacky to slimy; non to slight cohesiveness; slight adhesiveness; earthy fracture; sub nodular habit; moderate luster; clayey texture; massive beds of gradational clay; composed of 90% tuffaceous clay, 10% tuffaceous siltstone; scattered fine grained sand interbedded; visible pyro-clastic relic shards and various detrital material. · Carbonaceous Shale and Clay (2490' to 2400') = brownish black; brittle to firm earthy luster; matte texture; planar fracture along shale partings; composed of very carbonaceous shale and clay some grading to lignitic coal; no visible bleeding gas from cuttings. Tuffaceous Claystone (2410' to 2460') = pale yellowish brown to medium light gray; very soft to soft; mushy to pasty; tacky some slimy; non to slightly adhesive to slightly cohesive; amorphous to earthy fracture; amorphous to sub nodular habit; moderate earthy luster; colloidal to clayey texture; massive gradational clays composed of 80% clay, 20% silt and various detrital material. Coal! Very Carbonaceous Shale (2470' to 2515') = black; firm; resinous luster; matte texture; sub conchoidal fracture; composed of sub lignitic to bituminous coal; visible bleed gas from cuttings. Tuffaceous Claystone (2520' to 2550') = pale yellowish brown to medium light gray; very soft to soft; mushy to pasty; tacky some slimy; non to slightly cohesive to slightly adhesive; amorphous to earthy fracture; amorphous to sub Nodular habit; moderate earthy luster; colloidal to clayey texture; massive bed of homogeneous clay; composed of 80% clay, 20% silt, carbon fragments, pyro clastic relic shards and various detrital material. Tuffaceous Siltstone (2560' to 2610') = light gray to medium light gray; very poorly indurated; various consistency and tenacity; non cohesive to slightly adhesive; amorphous to earthy fracture; amorphous to sub nodular habit; moderate earthy luster; colloidal to silty text; massive gradational beds of silt, clay and interbedded sands. Tuffaceous Claystone (2590' to 2760') = medium gray to medium light gray; poorly indurated and soluble; very slightly silty overall, to locally silty to fine sandy grading siltstone and sandstone; occasionally grading brownish gray organic claystone and carbonaceous shale with thinly interbedded coal. Coal (2645' to 2750') = black to brownish black to dusky brown; lignite with flaky to platy fracture with · common visible lamina and organic clay on partings; to subbituminous and dense with angular to blocky [=I EP()C·H 11 UNOCALe Red #2 · fracture and some visible lamina; interbedded to thinly bedded in carbonaceous shale and tuffaceous claystone. Sand/Sandstone (2655' to 2730') = medium gray to medium dark gray; fine upper to coarse, especially medium, to grading very fine to fine grains; subangular overall; mostly loose grains especially medium to coarse; to some matrix supported, especially very fine to fine, and rare hard and dense with calcareous cement, especially fine to medium lower; overall moderately to poorly sorted; 40% quartz, and 60% dark gray to gray to rare light olive gray mostly silicate Grains, possibly metalithics and chert and minor lithics; estimate some poor to fair porosity; no oil indicators. Carbonaceous Shale (2730' to 29101 = grayish brown to brownish gray; slightly firm to soft; slightly soluble to soluble; earthy with some slightly to moderately silty to fine sandy texture, especially firmer pieces; variably organic clays often with lenses to flakes and partings of carbonaceous matter; locally interlaminated to interbedded coal. Tuffaceous Claystone (2760' to 2910') = medium light gray, to medium gray with faint bluish hue, to light brownish gray to light gray; poorly indurated and moderately soluble to soluble; clayey to slightly silty texture; occasionally with moderately silty to very fine sandy texture; noncalcareous; grading to and interbedded with carbonaceous shale and coal; occasionally grading smooth clayey ash fall tuff. Coal (2870' to 2920') = black to brownish black to dusky brown; lignite with flaky to platy fracture with common visible lamina and organic clay on partings; to subbituminous and dense with angular to blocky fracture and common visible lamina; interbedded to thinly bedded in carbonaceous shale and variably organic tuffaceous claystone. · Sand (2915' to 29801 = medium light gray to medium gray = fine to coarse to scattered to common very coarse and pebble; subangular overall; poorly to moderately sorted and matrix and grain supported in ashy clay matrix; some gradational bedding; 30% quartz, and 70% light to dark gray to grayish brown to light green silicates, chert, and partially siliceous lithics; mostly metalithics; estimate poor to fair porosity; no oil indicators. Tuffaceous Claystone (2910' to 3080') = medium light gray to medium gray to light gray; poorly indurated; soluble to occasionally moderately soluble; overall slightly siltylvery fine sandy texture; trace calcareous calcite and clay supported sandstone; occasionally grading siltstone and sandstone; locally variably organic grading brownish gray carbonaceous shale; locally interbedded coal. Tuffaceous Siltstone/Sandstone (3080' to 3180') = medium light gray to medium gray, some with brownish hue; slightly firm to moderately soft; moderately soluble to soluble; clayey silt to very fine and fine grains sandstone; matrix supported, to grain supported in clay matrix; variably tuffaceous to some slightly organic; grains include quartz, metalithics, and carbonaceous siltslfines grading to and interbedded in tuffaceous claystone and carbonaceous shale with locally interbedded coal; noncalcareous. Coal (3095' to 3170') = grayish black to black to occasionally brownish black; mostly dense subbituminous with common visible lamina with platy to blocky to angular fracture; to some lignite with flaky to crumbly fracture and grading carbonaceous shale. Tuffaceous Claystone (3180' to 32201 = medium gray to medium light gray; slightly firm to soft; slightly soluble to soluble; clayey to slightly silty texture; often with flakes and partings of carbonaceous matter; some with slightly organic clay and locally grading carbonaceous shale with interbedded coal. · Sand (3220' to 33301 = medium light gray to medium gray; fine upper to coarse lower; subangular to subrounded; moderately to poorly sorted in ashy clay matrix; matrix and grain supported; 50% quartz, and 50% dark gray to gray to black to gray to minor green silicate including metalithics and partially siliceous lithics and chert; some interbedded medium gray dense calcareous shale, claystone, and siltstone; estimate some poor to fair porosity; no oil indicators. ~ El'()C·H 12 UNOCALe Red #2 · Tuffaceous Claystone (3220' to 33601 = medium gray to medium light gray to occasionally light gray; moderately soft to slightly firm; moderately soluble to soluble; clayey to silty/fine sandy texture; with slight silts, fines, and flakes of carbonaceous matter; occasionally with slightly organic clay and with increased carbonaceous matter grading grayish brown carbonaceous shale with thinly interbedded coal. Calcareous Shale (3370' to 3390') = medium gray; very firm to brittle; very fine silty texture due calcite; irregular platy fracture; slight carbonaceous silts and fines to race brownish gray with increase carbonaceous matter including flakes and partings. Tuffaceous Claystone (3390' to 3480') = medium gray to medium light gray to occasionally light gray; soft to moderately soft to slightly firm; moderately soluble to soluble; clayey to silty/fine sandy texture; some with slight silts, fines and flakes of carbonaceous matter; some with slightly organic clay and increased carbonaceous matter grading grayish brown carbonaceous shale interbedded coal. Tuffaceous Claystone (3490' to 3540') = medium light gray; very soft; malleable; sectile; flexi; lumpy to clumpy; cluster to clotted; gelatin; mushy to pasty; slimy; non to slight cohesive; slight to moderate adhesive; earthy to amorphous fracture; massive to sub nodular habit; moderate to earthy luster; clayey text; massive beds of homogeneous clay; composed of 80% clay, 20% silt visible pyro clastic relic shards. Carbonaceous Shale and Clay / coal (3550' to 3640') = black in coal mottled brownish black to dusky brown in very carbonaceous shale and clay at contacts; soft with earthy luster in carbon clays to firm with a resinous luster in coals; matte to clayey texture; hackly fracture in coals to planar fracture in carbon sections along shale partings; composed of very carbonaceous shale and clay at contacts grading to lignitic coal at centers of gas peaks; visible bleeding gas from most cuttings. · Tuffaceous Siltstone (3650' to 3690') = medium light gray; poor induration; malleable; sectile; flexi; elastic; lump to clump; clustered to clotted; gelatin; mushy to pasty; slimy; non to very slight cohesive; hydrophilic; slight to moderate adhesive; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; clayey texture; massive gradational beds of clay and silt; composed of 70% clay, 30% silt. Tuffaceous Siltstone (3695' to 3710') = dark gray mottled grayish black; poor to moderate indurated; mushy in parts; sub nodular habit; earthy to sub blocky fracture; earthy luster; gritty texture; reworked redeposited carbonaceous detrital material. Tuffaceous Claystone (3720' to 3790') = medium light gray; soft; lumpy to clumpy clotted to clustered; gelatinous; mushy to pasty; tacky to slimy; non to slight cohesive to slight to moderate adhesive; earthy to amorphous fracture; sub nodular to amorphous habit; moderate to earthy luster; clayey to silty texture; massive gradational beds of clay and silt; composed of 50% clay, 50% silt and various detrital material. Coal/Carbonaceous shale (3800' to 3815') black mottled brownish black; firm; resinous to earthy luster; matte to smooth texture; planar to hackly fracture; composed of lignitic coal grading to very carbonaceous shale. Tuffaceous Siltstone (3820' to 38701 = medium light gray; poor induration; lumpy to clumpy; mushy to pasty; tacky To slimy; non to slight cohesive to moderate adhesiveness; earthy to amorphous fracture; sub nodular to amorphous habit; moderate earthy luster; silty to clayey texture; massive beds of gradational silt, clay and scattered carbonaceous shale zones; becoming very detritus rich. Coal/carbonaceous Shale (3880' to 3895') black mottled brownish black; firm; resinous to earthy luster; matte to smooth texture; planar to hackly fracture; composed of lignitic coal to very carbonaceous shale and clay. · Tuffaceous Claystone (3900' to 39901 = medium light gray; soft; malleable; sectile; flexi; lumpy to clumpy; mushy to pasty; tacky to slimy; non to slight cohesive; moderate adhesive; earthy to amorphous fracture; (j El)()C·H 13 UNOCALe Red #2 · hydrophilic; sub nodular to massive habit; silty to clay texture; massive gradational beds of silt and clay becoming carbonaceous in parts; composed of 50% silt, 50% clay. Tuffaceous siltstone (4000' to 4020') = medium light gray; poor induration; lumpy to clumpy; mushy to pasty; tacky to slimy; non to slightly cohesive; moderate adhesive; hydrophilic; earthy to amorphous fracture; sub nodular to massive habit; moderate earthy luster; silty to clayey texture; massive beds of Gradational clay; composed of 50% silty, 50% clay. Tuffaceous Claystone (4030' to 4080) = medium gray; soft occ firm; malleable; sectile in parts; lumpy to clumpy; mush to paste; tacky to slimy; non to slight cohesive; moderate adhesive; hydrophilic earthy to amorphous fracture; sub nodular to massive habit; moderate earthy luster; silty to clayey texture; massive gradational beds of clay, silt and scattered thin beds of lignitic coal to very carbonaceous shale and clay. Tuffaceous Claystone (4090' to 4140') = light gray to medium light gray; soft; slightly sectile; lumpy to clumpy; clustered to clotted; mushy to pasty; tacky to slimy; non to slight cohesive; moderate adhesiveness; earthy fracture; very hydrophilic; sub nodular habit; moderate earthy luster; clayey to silty texture; massive gradational beds of tuffaceous silts and clays; thin beds of very carbonaceous shale and coal. Coal/Carbonaceous Shale (4150' to 4170) black to brownish black; firm becoming soft in carbon shale; earthy to resinous luster; matte texture; planar fracture along carbon shale partings to hackly in coal sections; composed of lignitic coal to carbonaceous shale. Tuffaceous Siltstone (4180' to 4240') = light gray to medium gray; poorly indurated; slightly sectile; lumpy to clumpy; clustered to clotted; mushy to pasty; tacky to slimy; non to slightly cohesive to moderate adhesiveness; earthy fracture; sub nodular habit; moderate earthy luster; clayey to silty texture; very hydrophilic; massive gradational beds of silt and clay. · Coal/Carbonaceous Shale and Clay (4245' to 4300') = black mottled brownish black at contacts; soft carbon clays to firm coals at mass; earthy to resinous luster matte texture; hackly fracture in coals to planar fracture along shale partings in carbonaceous shale; no visible bleeding gas from cuttings; appears very ground up by the mud motor. Tuffaceous Siltstone (4305' to 4330) = medium light gray; poor induration; lumpy to clumpy; mushy to pasty; tacky; amorphous fracture; sub nodular habit; moderate earthy luster; massive beds of gradational silts and clay. Coal (4335' to 4350') = black to brown and black mottled; resinous to earthy luster; matte texture; planar to hackly fracture; composed of very carbonaceous shale at contacts to lignitic coal at center mass. Tuffaceous ClaystonelTuff (4350' to 4420') = medium gray to medium light gray; mostly moderately soft and soluble, locally hard, dense, grainy, and calcareous including calcareous tuff and slightly sandy to occasionally grading calcareous ss; overall clayey to slightly silty texture; some slightly sandy and including loose grainy calcite to trace calcareous claystone; trace carbonaceous matter to locally grading carbonaceous shale with minor interbedded coal. Tuffaceous Claystone (4420' to 4510) = medium gray to medium light gray to some light brownish gray; mostly soft and soluble to locally slightly firm and slightly calcareous; locally interbedded calcareous sand and grainy calcareous tuff, some hard and dense; often with slight carbonaceous matter including flakes and fines, to locally increasing grading carbonaceous shale and interbedded to interlaminated coal. Tuffaceous Claystone (4510' to 4550) = medium light gray to medium gray; soft to occasionally slightly firm; soluble; slightly silty texture overall; often slight carbonaceous matter including fines, flakes, and partings; some variably organic grading carbonaceous shale; occasional thin streaks to thinly interbedded coal. · ~ EP()CH 14 UNOCALe Red #2 · Sand (4550' to 4770') = medium gray; fine to medium grains, trace coarse; subangularto subrounded; moderate sphericity; visible matrix support and estimate some grain support as abundant loose grains; 50% quartz, and 50% very dark gray to gray silicates, including metalithics and chert, and partially siliceous lithics; grading to and interbedded with sandy claystone and claystone, and some interbedded carbonaceous shale with streaks to locally interbedded coal; estimate mostly poor to some fair porosity; no oil indicators Coal (4640' to 4670) = black to brownish black to occasionally dusky brown; hackly to flaky to platy to angular fracture; mostly lignite. Mudstone (4575' to 4710') = medium gray; moderately firm to very firm; brittle tenacity; smooth to fine silty texture; sub platy fracture; calcareous to moderately calcareous; silt texture possibly from crystalline calcite; rare grainy calcite and slightly sandy; interbedded with clayey to slightly silty tuffaceous claystone and carbonaceous shale with minor coal. Grainy Mudstone (4710' to 4920) = medium gray; firm to very firm; dense to brittle; grainy to smooth texture; some sandy to possible interbedded sandstone as indicated by loose grains; calcareous to moderately calcareous; interbedded with medium to medium light gray tuffaceous claystone, and light to medium brownish gray carbonaceous shale and associated coal. Coal (4775-4790') = brownish black to grayish black to black; subbituminous with blocky to angularto platy fracture, to lignite with laminar to flaky fracture and visible organic clay residue; massive to locally grading carbon. · Tuffaceous Claystone (4790'-4920') = medium gray to medium light gray; soft and soluble, to slightly firm and slightly calcareous to slightly organic; clayey to moderately silty texture; grading to variably calcareous mudstone, siltstone and very fine to medium grained sandstone; some with slight fines and flakes carbonaceous matter in slightly to rare moderately organic clays; locally interbedded coal, mostly lignite. Tuffaceous Claystone (4920' to 4980) = medium light gray to medium gray; mostly soft and soluble some grading to ash fall tuff, to occasionally slightly firm and slightly organic; often with slight silts and fines of carbonaceous matter and spotty brownish gray organic clay inclusions; rare with flakes carbonaceous matter and grading to carbonaceous shale; locally interbedded coal. Coal (4920' to 5035') = black to dusky brown; dense subbituminous with sub platy to hackly to angular fracture and visible lamina, to lignite with flaky to platy fracture and visible organic residue on partings; thinly bedded in variably organic tuffaceous claystone. Tuffaceous Claystone (4980' to 5070) = medium light gray to medium gray; mostly soft and soluble some grading to ash fall tuff, to occasionally slightly firm and slightly organic; clayey to moderately silty texture; often with slight silts and fines of carbonaceous matter and spotty brownish gray organic clay inclusions; occasionally with flakes carbonaceous matter grading to carbonaceous shale; some thinly interbedded coal; rare firm to hard calcareous streaks. Coal/carbonaceous Shale (5070' to 5120) black some mottled brownish black; firm; resinous to earthy luster in shale matte texture; sub hackly to sub blocky fracture; composed of very carbonaceous shale at contacts to lignitic coal at center mass; abundant bleeding gas from most coal cuttings. Tuffaceous Claystone (5130' to 5170') = medium gray; very soft to soft; lumpy to clumpy; gelatin; mushy to pasty; tacky to slimy; non to very slight cohesive to slight to moderate adhesive; slight to moderate calcareous; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; clayey to colloidal texture; very hydrophilic; massive beds of tuffaceous clay, silt and coal. · [:1 El)()CH 15 UNOCALe Red #2 · Coal/Carbonaceous Shale (5170' to 5220') black some mottled brownish black; firm; resinous to earthy luster in carbon sections; hackly to sub blocky fractures composed of lignitic coal to very carbon shale; visible bleeding gas in coals. Tuffaceous Claystone (5230' to 5260') = medium gray; very soft to soft; lumpy to clumpy; gelatinous; mushy to pasty; tacky to slimy; non to very slight cohesive to slight to moderate adhesive; slight to moderate calcareous; amorphous to earthy fracture; massive to sub nodular habit; moderate to earthy luster; colloidal to clayey texture; massive beds of gradational tuffaceous claystone; composed of 70% clay, 30% silt and various detrital material; visible pyro clastic relic shards. Tuffaceous Siltstone (5270' to 5320') = medium light gray to medium gray; very poorly to poor induration; lumpy to clumpy; clustered to clotted; gelatinous mushy to pasty; tacky to slimy; non to slight cohesive; moderate adhesive; amorphous to earthy fracture; massive to amorphous habit; moderate earthy luster; colloidal to clayey texture; very hydrophilic with most going into solution; massive gradational beds of tuffaceous siltstone; composed of 50% silt, 50% clay; scattered thin carbon shale and coal. Coal/Carbonaceous Shale (5330' to 5370') black mottled brownish black to grayish black; firm; resinous to earthy luster in shale sections; matte texture; planar fracture along shale partings to sub hackly fractures in lignitic coals; visible bleeding gas in coal fragments. Tuffaceous Siltstone (5380' to 5490') = medium light gray; very soft to soft; lumpy to clumpy; clustered to clotted; gelatinous; mushy to pasty; tacky to slimy; non to slight cohesive; moderate adhesive; very hydrophilic; various tenacity and consistencies; amorphous to earthy fracture; massive to sub nodular habit; moderate to earthy luster silty/clayey to colloidal texture; massive beds of gradational silt; composed of 70% silt, 30% clay; visible pyro clastic relic shards. · Sand (5495' to 5515') = medium dark gray clast size ranges from medium lower to silt; sub angular to sub round; moderate to poor sphericity; poor sorting; pitted to impacted texture; sub mature nature; no visible cement; most sand as interbedded loose grains; dominant matrix support; composed of dominant quartz with secondary meta fragments; poor porosity and permeability; no oil. Tuffaceous Siltstone (5520' to 5580') = medium light gray; very poor to poor induration; lumpy to clumpy; clustered to clotted; gelatin; mushy to pasty; tacky to slimy; non to slight cohesive; moderate adhesive; amorphous to earthy fracture; massive to sub nodular habit; colloidal to silty texture; massive beds of gradational tuffaceous silt, clay with carbonaceous shale to thin coal stringers. Coal/carbonaceous Shale (5590' to 5655') black mottled brownish black to grayish black; brittle to firm; resinous to earthy luster in carbon sections; matte to smooth texture; planar fracture along shale partings with hackly in lignitic coals; visible bleeding gas from coals. Tuffaceous Claystone (5660' to 5700') = medium light gray; very soft to soft; lumpy to clumpy; clotted to clustered; gelatinous; mushy to pasty; tacky to slimy; non to very slight cohesive; slight to moderate adhesive; amorphous to earthy fracture; massive to colloidal habit; very hydrophilic; moderate earthy luster; clayey to silty texture; massive gradational bedding of silt and clays; composed of 50% clay, 50% silt; scattered thin coal and carbonaceous shale. Coal/Carbonaceous Shale (5705' to 5715') black to grayish black; firm; earthy luster some resinous in coals; matte texture; planar fracture along shale partings becoming hackly in coals; composed of very carbonaceous shale at contacts to lignitic coal at mass; some visible bleeding gas noted in coals. · Tuffaceous Siltstone (5720' to 5785') = medium light gray; very poor to poor induration; lumpy to clumpy; clustered to clotted; gelatinous; mushy to pasty; tacky to slimy; non to very slight cohesive; slight to moderate adhesive; amorphous fracture and habit; massive to sub nodular habit; moderate earthy luster; silty/clayey texture; very hydrophilic; massive gradational silts and clays; composed of 50% silt, 50% tuffaceous claystone. (;I El)()CH 16 · · · UNOCALe Red #2 Coal/carbonaceous Shale (5790' to 5865') black to grayish black; firm; dominant earthy luster with some resinous in dominant coals; matte texture; planar fracture with secondary hackly in coal; composed of very carbonaceous shale grading to lignitic coal; visible bleeding gas in most cuttings. Tuffaceous Siltstone (5865' to 5905') = medium gray to dark gray; very poor to poor induration; lumpy to clumpy; clustered to clotted; mushy to pasty; some grading to carbonaceous silt and very fine to fine grain sandstone; very detritalish and carbonaceous; interbedded with very carbon shale; amorphous to earthy fracture; massive to sub nodular habit; dull to moderate earthy luster; gritty to clayey texture; composed of various silt, carbon shale, sandstone: reworked re-deposited. Tuffaceous Claystone (5905' to 6100') = medium light gray to medium dark gray depending on organic matter; soft and soluble to slightly firm with increase organics; occasionally slightly firm to very firm and slightly calcareous to calcareous; clayey to silty texture; often slight and some moderate silts, fines, and flakes of carbonaceous matter, grading to carbonaceous shale with carbonaceous micro partings, and associated with interbedded coal. Coal (5880' to 6045') = black to grayish black to brownish black; subbituminous, very firm to hard with blocky to angular to hackly fracture and dense lamina; to lignite, moderately firm to slightly firm with high organic clay content, and flaky to crumbly fracture, grading to carbonaceous shale. Calcareous Siltstone/Sandstone (6020' to 6100') = medium gray to medium light gray; occurs as thin beds and streaks; very firm to firm siltstone and hard dense sandstone; moderately to very calcareous leaving silt, sand, and argillaceous clay residue after dissolving in acid; sand grains very fine to fine; some very poor visible porosity in silty argillaceous very fine sandstone; slight loose sand grains in 6090-6120' sample, in part calcareous. Coal (6095' to 6110') = brownish black to black; mostly lignite, slightly firm and crumbly to flaky; to some subbituminous, firm to very firm with angular to planar to hackly fracture. Sand (6110' to 6190') = medium light gray; very fine upper to medium lower, to locally scattered medium upper to coarse; subangular to subrounded; moderate to high sphericity; occurs as loose grains; estimate mostly matrix supported in soft ashy clay; estimate poorly to moderately sorted; gradational to interbedded with tuffaceous claystone and siltstone; occasional streaks dense and calcareous; 70% quartz, and 30% black to brownish black to gray to minor green, including mostly silicates (chert in part) and some lithics; estimate some poor to fair porosity and permeability in grain supported sand. Tuffaceous Claystone (6190' to 6300') = medium light gray to medium dark gray, some with brownish hue; slightly firm to 50ft, with firmer pieces increasingly carbonaceous; occasionally moderately firm to firm and moderately calcareous to calcareous; occasional streaks to thin beds variably calcareous siltstone and sandstone; clayey to earthy to silty texture; mostly with slight to moderate carbonaceous silts, fines, flakes, and partings; to grading medium dark gray to brownish gray carbonaceous shale. Sand/Sandstone (6280' to 6390') = medium light gray; very fine to coarse lower, especially fine to medium grains; subangular to subrounded; loose grains to some variably poorly to moderately well to streaks very well consolidated and mostly grain supported in clay and calcite cement; interbedded in variably tuffaceous to carbonaceous to calcareous claystone and siltstones and coal; 70% quartz, and 30% brownish black to black to some gray to occasionally greenish gray to trace tan silicates and lithics; non to very poor visible porosity in sandstone, to estimate some poor to fair visible porosity; no oil indicators. Coal (6330' to 6410') = brownish black to black.; lignite with platy to flaky fracture and clay residue on partings, to some subbituminous with platy to hackly to some angular fracture; massive to common thin beds, lamina, and streaks associated with various lithologies. Tuffaceous Siltstone (6360' to 6450') = medium gray to light brownish gray to medium dark gray; moderately 50ft to firm; variably clayey; some slightly calcareous to calcareous; often slightly too moderately organic/carbonaceous; grading to and interbedded with various lithologies. ~ EI)()CH 17 UNOCALe Red #2 · Sandstone (6450' to 6600') = medium light gray to light gray; fine to very fine and scattered medium grains; angular to subrounded; friable to some moderately consolidated in ashy clay and calcite cement; grading to calcareous tuff with shard like grains; poorly to moderately sorted and matrix and grain supported; 70% quartz, and 30% brown to black to gray to minor green and pink silicates and coal and clay lithics; very poor to poor visible and estimated porosity; no oil indicators. Coal (6530' to 6575') = brownish black to dusky brown to black; mostly lignite to some subbituminous; slightly firm to very firm; flaky to crumbly to some platy to angular fracture; locally grading grayish brown to medium dark. gray carbonaceous shale; some siltstone and sandstone contact. Tuffaceous Siltstone (6600' to 6680') = medium gray to light brownish gray to medium dark gray; moderately soft to firm; variably clayey; often slightly calcareous to calcareous; often slightly too moderately organic/carbonaceous; grading to and interbedded with various lithologies. Coal (6600' to 6725') = brownish black to black to dusky brown; mostly lignite to some subbituminous; slightly firm to very firm; flaky to crumbly to platy to angular fracture; locally grading grayish brown to medium dark. gray carbonaceous shale; some siltstone and sandstone contact; some interbedded ash fall tuff. Tuffaceous Siltstone (6680' to 6720') = medium gray to light brownish gray to medium dark gray; moderately soft to firm; variably clayey; most slightly calcareous to calcareous; some slightly to moderately organic/carbonaceous; grading to and interbedded with variably tuffaceous claystone and coal. · Sand (6730' to 6785) = light gray to pinkish gray; clast size range medium lower to fine upper becoming coarse @ 6770'; sub angular to sub round; moderate sphericity becoming well at 6770'; impacted to chip texture; moderate to well sorted becoming poor at 6770'; sub mature to mature nature; non to very slight silica cement; moderate clay structured matrix; matrix supported with secondary grain support; composed of 90% quartz, 10% meta and various lithic fragments; fair porosity and permeability; no oil indicators. Coal (6810' to 6820') = black to brownish black to dusky brown; firm; earthy to some resinous luster; matte texture; planar fracture along shale partings to hackly fracture in coal; composed of very carbonaceous shale and clay to lignitic coal; visible bleed of gas in some cuttings. Tuffaceous Siltstone (6830 to 6900') = pale yellowish brown; very poor to poor induration; mushy to pasty; tacky to slimy; non to slight cohesive; slight to moderate adhesive; amorphous fracture massive to sub nodular habit; moderate to bright earthy luster; colloidal to silty texture; very hydrophilic; massive gradational beds of silt; some very fine grain sandstone; composed of 60% silt, 30% clay, 10% ash, sand and various detrital material. Sandstone (6900' to 6920') = very light to light gray; clast size from fine upper to silt; sub round; moderate sphericity; very poor sorting; impacted to chip texture; immature nature; very calcareous; dominant silt structured matrix; dominant matrix support; compose of quartz with secondary detrital material; poor porosity and permeability no oil indicators. Coal/Carbonaceous shale (6930' to 6970') black to brownish black in carbon shale; brittle to firm; earthy to resinous luster in coals; matte to smooth texture planar fracture along shale partings to hackly in coals; visible bleeding gas from coal cuttings; cuttings are very ground up with mud motor. · Tuffaceous siltstone (6980' to 7080') = light brownish gray; very poor to poor induration; lumpy to clumpy; clustered to clotted; gelatinous; mushy to pasty; tacky to slimy; very hydrophilic; non to slight cohesiveness; slight to moderate adhesive; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; colloidal to silty text; massive gradational beds of tuffaceous silt; composed of 80% silt, 20% clay. ~ EP()CH 18 UNOCALe Red #2 . Coal/Carbonaceous Shale (7110' to 7140') = black to brownish black; finn becoming brittle at 7130'; earthy luster with organic look; matte texture; sub blocky to hackly fracture becoming planar at 7130'; cuttings become very ground up at 7130' planar to flaky fracture and habit; visible bleeding gas noted in most cuttings throughout the coal interval. Tuffaceous Siltstone (7150' to 7170') = light brownish gray; very poor to poor induration; lumpy to clumpy; clustered to clotted; mushy to pasty; tacky to slimy; no cohesive; slight adhesive; very hydrophilic; soupy; amorphous fracture; massive to sub nodular habit; moderate earthy luster; colloidal text; massive beds of hydrophilic silt; composed of 70% silt, 30% clay. Coal/carbonaceous Shale (7180' to 7195') = black to brownish black; brittle to finn; resinous to earthy luster in coals; matte texture; planar fracture along shale partings to sub hackly fractures in coals; cuttings appear ground up; slight visible bleed of gas from coal. Tuffaceous Siltstone (7200' to 7290') = light brownish gray to pale yellowish brown; very poor to poor induration; lumpy to clumpy; clotted to clustered; gelatinous; mushy to pasty; tacky to slimy; non cohesive to slightly adhesive very hydrophilic; various tenacity and consistencies; amorphous fracture; massive to sub nodular habit; moderate earthy luster; colloidal texture; massive gradational silts composed of 70% silt, 30% clay, carbon and detrital. Tuffaceous Claystone (7305' to 7350') = light brownish gray; very soft to soft; lumpy to clumpy; clustered to clotted; gelatinous; mushy to pasty; tacky to slimy; non cohesive; slight adhesive; amorphous fracture; massive to sub nodular habit; moderate earthy luster; colloidal texture; very hydrophilic; massive gradational beds of clay and silt; composed of 50% clay, 50% silt; visible pyro clastic relic shards. . Coal/carbonaceous Shale (7355' to 7420') black grading to brownish black in carbon sections; finn some brittle; resinous luster to earthy in carbon; matte texture; hackly to planar fracture along shale partings; composed of very carbonaceous shale grading to lignitic coal; slight visible bleeding gas. Tuffaceous Siltstone (7425' to 74501 = light brownish gray to brownish gray; very poor to poor some moderate induration; mushy to pasty; becoming stiff in parts; non to moderate cohesive non to slight adhesive; earthy fracture; sub nodular habit; dull earthy luster; silty to gritty texture; thick beds of gradational silt, fine grain sand, clay and carbonaceous shale. Coal/carbonaceous Shale (7455' to 7485') black mottled brownish black in parts; finn; resinous to earthy luster in shale matte texture; hackly to sub blocky fracture in coal to planer fracture in carbon shale; banded bedding of coal and carbon shale; abundant visible bleeding gas from high gas coals. Tuffaceous Siltstone (7490' to 7545') = light brownish gray to pale yellowish brown; poor induration; mushy to pasty; non cohesive; slight adhesive; soupy; amorphous fracture; massive to sub nodular habit; moderate calcareous; dull earthy luster; colloidal texture; massive gradational beds of silt and clay; composed of 70% silt, 30% clay and various detrital material. Carbonaceous Shale (7540' to 7640') = brownish gray to dusky brown; slightly finn to moderately finn; variably organic claystone with slight to moderate silts, fines, flakes, and partings of carbonaceous matter; locally very abundant partings; occasionally with coal streaks and lamina and interbedded with coal. Sand/Sandstone (7560' to 7680') = light gray to medium light gray; fine to very fine and scattered medium to trace coarse; subangular to subrounded; moderately high sphericity; loose grains to moderately to well consolidated in ashy calcareous matrix; moderately to poorly sorted and grain and some matrix supported; 70% quartz, and 30% gray to brownish black to occasional greenish gray silicates and lithics; very poor visible and estimate some poor porosity; no oil indicators. Tuffaceous Claystone (7660'-7800') = medium gray to medium light gray to light brownish gray; moderately soft and soluble to moderately finn; clayey to silty texture; finner pieces silty and moderately [:I El)()CH 19 UNOCALe Red #2 · calcareous grading to siltstone; some slightly organic; mostly slight carbonaceous silts, fines, and flakes, locally increasing grading to carbonaceous shale; grading to and interbedded with various lithologies. Coal (7720' to 7870') = black to brownish black; mostly subbituminous with blocky to hackly to angular fracture, especially thicker beds; to locally lignite, with platy to flaky to crumbly fracture and grading carbonaceous shale with high organic clay or variably organic with moderate to abundant partings, flakes, fines, and silts of carbonaceous matter. Sandstone/Sand (7770' to 7860') = medium light gray; very fine to medium grains, especially medium lower to fine; subangular to some angular; moderately high sphericity; moderately well to poorly sorted and mostly grain supported; poorly to some moderately consolidated in ashy calcareous cement; 75% quartz, and 25% gray to black to trace green silicates and lithics; massive to interbedded with variably tuffaceous siltstone and claystone; very poor visible porosity and penneability. Tuffaceous Claystone (7860' to 7920) = medium light gray to light brownish gray to medium gray; soft and soluble to finn to some very finn; smooth to silty texture; often slightly to occasionally moderately organic; often slight carbonaceous matter including silts, fines, flakes and partings; some slightly to moderately calcareous and shale; finner pieces with increase in calcareous and carbonaceous matter; occasionally grading carbonaceous shale; grading to and interbedded with siltstone, sandstone and minor coal. Coal (7920' to 8000') = black to brownish black; lignite with flaky to platy to crunchy fracture and overall high organic clay content, grading to some subbituminous with hackly to blocky to angular fracture; massive to occasionally grading carbonaceous shale. · Tuffaceous Claystone (7900'-8000') =medium gray to light gray to light brownish gray; soft and soluble to moderately finn; clayey to very fine silty to earthy texture; often slightly to locally moderately organic/carbonaceous with interbedded medium dark gray to dark brownish gray to grayish brown carbonaceous shale; carbonaceous shale's locally calcareous; claystone overall occasionally calcareous. Conglomeratic Sand/Sand (8010' to 8110) = medium light gray; fine to medium to some coarse and scattered pebble; sub rounded to subangular; moderately high sphericity; moderately to poorly sorted overall coarsening downward; 80% quartz, and 20% gray to black to green to pink mostly silicates and minor lithics; mostly unconsolidated; some poorly to moderately to rare dense with ashy calcareous cement; very poor visible to estimate some poor to possible fair porosity. Sandstone/Sand (8120' to 8170) = medium light gray; very fine upper to coarse lower; subangular to subrounded; moderately high sphericity; moderately to poorly sorted and mostly grain supported; ashy calcite matrix and calcareous cement; 80% quartz, and 20% gray to black to trace green and pink silicates and lithics; very poor visible porosity, and estimate some poor porosity; no oil indicators. Coal (8170' to 8260') = black; finn; earthy luster becoming more resinous at 8230'; matte texture; hackly fracture becoming more conchoidal with decrease in lignitic and increase in bituminous coals at 8220'; abundant visible bleeding gas in all coal cuttings. Tuffaceous Siltstone (8260' to 8280') = light brownish gray to pale yellowish brown; very poor to poor induration; lumpy to clumpy; clustered to clotted; mushy to pasty; very hydrophilic; non cohesive; non to slight adhesive; earthy fracture; massive to sub nodular habit; dull to bright earthy luster; ashy to colloidal texture; interbedded ash; massive gradational beds of silt composed of 70% silt, 20% clay, 10% ash. Tuffaceous Siltstone (8290' to 8360') = light brownish gray; very poor to poor induration; lumpy to clumpy; clustered to clotted becoming finner with depth; mushy to pasty; non cohesive; non to slight adhesive; earthy fracture; massive to sub nodular habit; moderate earthy luster; ashy to colloidal texture very hard to pick up cuttings; very hydrophilic; massive gradational beds of tuffaceous silt; composed of 80% silt, · 20% clay, ash and very fine grained sand and various detrital material. [:I El)()CH 20 UNOCALe Red #2 . Coal/Carbonaceous Shale (8360' to 8395') Black; brittle to firm; resinous to earthy luster; matte texture; hackly fracture; cuttings are very ground up; carbonaceous shale at contacts grading to carbonaceous clay in parts; composed of lignitic to bituminous coal. Coal (8425' to 8450') = black; firm; resinous luster in all cuttings; matte texture; sub blocky to blocky fracture; composed of bituminous coal; abundant visible bleeding gas from all cuttings. Tuffaceous Siltstone (8460' to 8480') = pale yellowish brown; very poor to poor induration; lumpy to clumpy; clustered to clotted; mushy to pasty; slimy; non cohesive; non to slight adhesive; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; ashy to colloidal texture; very hydrophilic with most going into the mud massive gradational beds of silt composed of 70% silt, 30% clay and various detrital material. Coal (8490' to 8520') = black; brittle to firm; earthy to resinous luster; matte to smooth texture; hackly fracture cuttings ground up and small in size; slight visible bleedings noted. Tuffaceous Siltstone (8530' to 8590') = pale yellowish brown; very poor to poor induration; lumpy to clumpy; mushy to pasty; slimy; non to slight cohesiveness non to slight adhesiveness; amorphous to earthy fracture; massive to sub nodular habit; moderate earthy luster; ashy to colloidal and silty texture; hydrophilic with cuttings becoming slightly firmer with depth; composed of 70% silt, 30% clay with various detrital material. Coal (8590' to 8605') = black, brittle to firm; earthy to resinous luster; matte texture some smooth; hackly fracture; composed of lignitic to bituminous coal; visible bleeding gas. . Tuffaceous Siltstone (8620' to 8670') = light brownish gray to pale yellowish brown; very poor to poor induration; clotted to clustered; mushy to pasty; slimy; non to slight cohesive; non to slight adhesive; earthy fracture; massive to sub nodular habit; moderate to earthy luster; ashy to colloidal text massive beds of gradational silts composed of 80% silt, 20% clay with some carbon laminae and very fine sandstone. Coal/Carbonaceous shale (8680' to 8700') black; firm; resinous luster; matte texture; sub blocky to hackly fracture; composed of very carbonaceous shale to coal; visible bleeding gas from cuttings. Tuffaceous Siltstone (8710' to 8760') = pale yellowish brown to light brownish gray; very poor to poor induration; clotted to clustered; mushy to pasty; slimy; non to slight cohesive; non to slight adhesive; earthy fracture; massive to sub nodular habit; moderate earthy luster; ashy to colloidal texture massive gradational silt composed of 80% silt, 20% clay and other detrital silts. Sand/Sandstone (8770' to 8795') = very light grey; clast size range fine lower to silt; sub angular to sub round; moderate sphericity; poor sorting; chip to impacted texture; immature nature; non to very weak silica cement; dominant silt packed matrix; dominant matrix support; composed of 90% quartz, 10% various lithic fragments; poor porosity and permeability; no oil indicators. Coal/Carbonaceous shale (8825' to 8855') black; firm some hard; resinous luster; matte texture; hackly to sub conchoidal fracture; composed of bituminous coal; visible bleeding gas. Tuffaceous Siltstone (8860' to 8970') = pale yellowish brown some light brown; very poor to poor induration; mushy to pasty; slimy; non to slight cohesive; non to slight adhesive; earthy fracture; massive to sub nodular habit; moderate earthy luster; ashy to colloidal texture massive gradational beds of silt; composed of 50% silt, 50% clay. . Coal/Carbonaceous Shale (8935' to 8945') black; firm some hard; resinous luster; matte texture; hackly to sub conchoidal fracture; composed of bituminous coal with carbonaceous shale at the contacts; visible bleeding gas noted from larger coal cuttings. [:1 El)()C·H 21 UNOCALe Red #2 . Sandstone (8970' to 9020') = medium light gray; very fine to medium grains, especially fine; subangular; moderate to high sphericity; abundant loose grains often lightly frosted calcareous matter, to small clusters friable to moderately consolidated grain and matrix supported with ashy calcite; trace bedding plane contact with coal; matrix occasionally slightly organic; poorly to moderately sorted; 70% quartz and 30% gray to green to black to pink grains including silicates and some lithics; very poor visible porosity. Tuffaceous Claystone (9020-9090') = medium gray to medium light gray, often with brownish hue to occasionally brownish gray; soft and soluble to firm, mostly slightly firm; earthy to clayey to very fine silty texture grading siltstone; often slight organic clay and disseminated carbonaceous matter, to locally grading to interbedded medium dark. gray to dark. brownish gray carbonaceous shale; occasionally calcareous especially siltstone; locally interbedded to stringers calcareous sandstone; locally interbedded coal especially associated with carbonaceous shale. Sandstone (9060' to 9165') = medium light gray; very fine to medium grains, especially very fine to fine lower; subangular; moderate to moderately high sphericity; poorly to moderately sorted; grain and matrix supported and friable to occasionally moderately consolidated in ashy clay and calcite matrix; interbedded with tuffaceous siltstone and claystone, some calcareous, and locally interbedded coal. Coal (9165' to 9185') = grayish black to black; brittle to dense; irregular hackly to some blocky to angular fracture; dull polished luster; massive; subbituminous to high grade lignite. Tuffaceous Claystone/Siltstone (9185' to 9290') = medium gray to medium light gray, some with brownish hue, to brownish gray; moderately soft to firm; slightly silty to earthy to clayey to silty texture; non to some slightly organic clay; mostly trace to slight disseminated carbonaceous matter, and some with remnant flakes and partings; grading dark brownish gray carbonaceous shale often with increased flakes and partings, and thin streaks to thinly bedded coal; locally interbedded silty sandstone and very fine to fine grain sandstone, calcareous in part; overall non calcareous. . Sand/Sandstone (9290' to 9360') = medium light gray to light gray; fine upper to coarse, especially medium, and slight very coarse and pebble fragments in lower part of upper sand; subangular to subrounded; moderate to high sphericity; moderately well sorted; mostly unconsolidated with slight loose calcite; trace very friable sand clusters with very slight intergranular calcite; occasionally poorly to moderately consolidated with calcareous cement in some finer sandstone; 80% quartz, and 20% black to gray to minor green and red grains including mostly silicates (chert in part) and minor lithics; estimate fair to poor porosity and permeability. Tuffaceous Claystone (9360' to 9450') = medium gray to light brownish gray to medium light gray; firm to soft, especially moderately firm; smooth to silty grading and inter/aminated with argillaceous siltstone to minor very fine grained sandstone; mostly slight disseminated carbonaceous matter and non to slightly organic clay; occasionally grading carbonaceous shale and siltstone with increased organics and some faint carbonaceous parting; some slightly sandy with fine to medium grains; some thinly bedded fine grained sandstone, mostly non calcareous; non calcareous. Tuffaceous Claystone (9450' to 9490') = medium gray to medium dark. gray to brownish gray to light brownish gray; firm to soft especially moderately firm; slightly silty to earthy to silty texture; very slight to occasional moderate disseminated carbonaceous matter; often slightly organic clay; occasionally grading carbonaceous shale and minor interbedded coal. Tuffaceous Claystone (9500' to 9540') = light brownish gray to medium light gray to light gray; soft and soluble; slightly to moderately silty texture; often grading to siltstone; occasional firm stringers of siltstone, slightly calcareous; grading to ash fall tuff; often slightly to moderately organic especially associated with coal. Tuffaceous Siltstone (9550' to 9600') = moderate yellowish brown; poor induration; mushy to pasty; slimy; . non to very slight cohesive and adhesiveness earthy fracture; sub nodular habit; moderate earthy luster; ~ El)()(~H 22 · · · UNOCALe Red #2 ashy texture; massive beds of gradational silts composed of 70% silt, 30% clay and various detrital material; slight organic look. Coal (9605' to 9670') = black; filTTl some hard; resinous luster; matte texture; sub conchoidal to hackly fracture; composed of bituminous coal with visible bleeding gas. Ash (9670' to 9700') = very light gray mottled very pale orange; very poor induration; greasy to earthy luster; ashy texture; composed of devitrified ash; appears altered and redeposited; composed of pyro clastic glass shards, silt, carbon fragments, very fine sand and various detrital material. Coal/Carbonaceous Shale (9710 to 97251 black some brownish black at contacts; filTTl some hard; resinous luster; sub conchoidal to hackly fracture; composed of bituminous coal with visible bleeding gas from cuttings. Sand (9730' to 9755') = very light gray; clast size medium upper to very fine; sub round; moderate to well sphericity; poor sorting; polish texture; sub mature non visible cement; abundant silt/ash matrix; dominant matrix support; compose of 90% quartz; poor porosity and poor pelTTleability; no oil indicators. Sand (9770' to 9810') = very light gray; very coarse to very fine; sub angular to sub round; moderate sphericity; poor sorting; chip to impact texture; sub mature; non to very weak silica cement; moderate silt/ash structured matrix; both matrix and grain support; 90% quartz; poor with some fair porosity and pelTTleability; becoming ashy with depth; no oil indicators. Tuffaceous Siltstone (9820' to 9880') = dark yellowish brown; very poor to poor induration; mushy to pasty; slimy; very poor cohesiveness; non to slight adhesiveness; earthy to sub planar fracture; sub platy habit; dull earthy luster; ashy to silty texture; massive beds of organic silt; composed of 80% silt, 20% clay and detrital material. Tuffaceous Claystone (9880' to 99401 = medium light gray to light brownish gray to grayish brown; soft and soluble; rare moderately filTTl to filTTl medium to medium dark gray; slightly to moderately silty texture grading to siltstone; very tuffaceous grading ash fall tuff; often slightly to moderately organic; mostly trace to slight disseminated and flakes carbonaceous matter; often grading carbonaceous shale with increase organic clay and carbonaceous matter, grading to lignite; non calcareous. Coal (9925' to 10030') = black to brownish black to grayish black; subbituminous with dense blocky to angular to hackly to platy fracture, and dull polished luster; to lignite with platy to flaky to crumbly fracture and resinous to waxy luster; tending to be subbituminous in thicker beds, and lignitic associated with carbonaceous shale. Tuffaceous Claystone (10000' to 101001 = light brownish gray to grayish brown to medium light gray to medium gray; some soft and soluble, moderately to slightly organic, variably silty, and very ashy grading to light gray to very light gray ash fall tuff; some slightly filTTl to filTTl, with clayey to silty to earthy texture; overall mostly trace to slight carbonaceous matter to locally increasing with common micro partings grading to carbonaceous shale; trace ashy very fine to fine grained sandstone. ~ El)()C·H 23 UNOCALe RED #2 SURVEYS True Survey Inclina- Azimuth Course Vertical Vertical Coordinates Closure Dogleg Build Walk Depth tion Length Depth Section N/S EIW Distance Angle Severity Rate Rate (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/100') (d/100') 0 0.00 0.00 0 0 0.00 0.00 S 0.00 W 0.00 180.00 50 0.35 256.53 50 50.00 0.13 0.04 S 0.15 W 0.15 256.49 0.70 0.70 513.06 100 0.38 240.36 50 100.00 0.41 0.15 S 0.44 W 0.47 250.87 0.21 0.06 -32.33 150 0.41 261.14 50 150.00 0.71 0.26 S 0.76 W 0.80 250.98 0.29 0.06 41.56 200 0.29 235.43 50 200.00 0.97 0.36 S 1.04 W 1.10 250.85 0.39 -0.24 -51.43 250 0.33 217.81 50 250.00 1.24 0.55 S 1.23 W 1.34 246.06 0.21 0.09 -35.23 300 0.24 220.68 50 300.00 1.49 0.74 S 1.38 W 1.57 241 .94 0.20 -0.19 5.73 350 0.19 255.15 50 349.99 1.66 0.84 S 1.53 W 1.74 241.34 0.27 -0.09 68.94 400 0.15 227.58 50 399.99 1.80 0.90 S 1.66 W 1.89 241 .46 0.18 -0.08 -55.14 450 0.09 232.04 50 449.99 1.90 0.97 S 1.74 W 1.99 240.82 0.12 -0.12 8.92 500 0.08 234.87 50 499.99 1.97 1.02 S 1.80 W 2.07 240.54 0.03 -0.03 5.66 550 0.19 244.95 50 549.99 2.08 1.07 S 1.90 W 2.18 240.62 0.22 0.21 20.17 600 0.13 221.21 50 599.99 2.22 1.15 S 2.01 W 2.32 240.31 0.17 -0.12 -47.48 650 0.17 266.98 50 649.99 2.33 1.19 S 2.12 W 2.44 240.65 0.24 0.08 91.53 700 0.13 253.68 50 699.99 2.43 1.21 S 2.25 W 2.56 241.66 0.10 -0.07 -26.60 750 0.12 239.91 50 749.99 2.53 1.26 S 2.35 W 2.66 241 .88 0.07 -0.03 -27.53 800 0.13 228.03 50 799.99 2.63 1.32 S 2.44 W 2.77 241 .56 0.06 0.03 -23.76 850 0.17 261.49 50 849.99 2.75 1.37 S 2.55 W 2.90 241.80 0.19 0.08 66.92 900 0.06 211.64 50 899.99 2.83 1.40 S 2.64 W 2.99 242.03 0.28 -0.22 -99.71 950 0.08 208.33 50 949.99 2.89 1.46 S 2.67 W 3.04 241 .41 0.04 0.04 -6.63 1000 0.18 243.66 50 999.99 3.00 1.52 S 2.76 W 3.15 241 . 12 0.25 0.20 70.66 1050 0.20 236.40 50 1049.99 3.16 1.61 S 2.90 W 3.32 241.05 0.06 0.04 -14.51 1100 0.15 237.81 50 1099.99 3.31 1.69 S 3.03 W 3.47 240.88 0.10 -0.10 2.80 1150 0.19 259.74 50 1149.99 3.44 1.74 S 3.17 W 3.61 241.24 0.15 0.08 43.87 1200 0.19 278.67 50 1199.99 3.55 1.74 S 3.33 W 3.76 242.42 0.13 0.01 37.86 . [:I El~()(~H . . UNOCALe Red #2 True Survey Inclina- Azimuth Course Vertical Vertical Coordinates Closure Dogleg Build Walk Depth tion Length Depth Section N/S EIW Distance Angle Severity Rate Rate (ft) (dea) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/100') (d/100') 1250 0.07 274.28 50 1249.99 3.62 1.72 S 3.45 W 3.85 243.41 0.24 -0.24 -8.79 1300 0.12 212.58 50 1299.99 3.69 1.77 S 3.51 W 3.93 243.25 0.22 0.10 -123.38 1350 0.13 230.87 50 1349.99 3.80 1.85 S 3.58 W 4.03 242.69 0.08 0.02 36.56 1400 0.12 238.96 50 1399.99 3.91 1.91 S 3.67 W 4.14 242.48 0.04 -0.02 16.20 1450 0.19 252.06 50 1449.99 4.03 1.96 S 3.79 W 4.27 242.62 0.15 0.13 26.20 1619 0.33 261.56 169 1618.99 4.65 2.12 S 4.53 W 5.00 244.95 0.09 0.09 5.62 1808 0.65 226.64 189 1807.98 6.15 2.93 S 5.85 W 6.54 243.36 0.22 0.17 -18.48 1903 0.76 237.86 95 1902.98 7.30 3.64 S 6.77 W 7.69 241.75 0.19 0.12 11.81 1997 3.12 234.46 94 1996.91 10.42 5.46 S 9.38 W 10.86 239.82 2.51 2.51 -3.62 2092 4.51 224.58 95 2091.70 16.69 9.62 S 14.11 W 17.08 235.71 1.61 1.46 -10.40 2187 6.68 222.50 95 2186.25 25.95 16.36 S 20.47 W 26.20 231.37 2.29 2.28 -2.19 2281 9.23 221.99 94 2279.33 38.95 25.99 S 29.20 W 39.10 228.33 2.71 2.71 -0.54 2376 12.06 219.18 95 2372.69 56.47 39.35 S 40.57 W 56.52 225.88 3.03 2.98 -2.96 2471 14.87 221.12 95 2465.07 78.55 56.23 S 54.86 W 78.56 224.29 3.00 2.96 2.04 2565 17.49 222.12 94 2555.34 104.73 75.80 S 72.27 W 104.73 223.64 2.80 2.79 1.06 2660 19.81 224.70 95 2645.34 135.10 97.83 S 93.17 W 135.10 223.60 2.59 2.44 2.72 2754 22.41 223.83 94 2733.03 168.95 122.08 S 116.79 W 168.95 223.73 2.79 2.77 -0.93 2849 25.80 223.42 95 2819.73 207.74 150.17 S 143.55 W 207.74 223.71 3.57 3.57 -0.43 2944 29.23 221.91 95 2903.98 251.61 182.46 S 173.26 W 251.62 223.52 3.68 3.61 -1.59 3038 31.28 223.30 94 2985.17 298.97 217.30 S 205.33 W 298.97 223.38 2.30 2.18 1.48 3133 31.64 222.80 95 3066.20 348.55 253.54 S 239.17 W 348.55 223.33 0.47 0.38 -0.53 3227 31.96 222.55 94 3146.09 398.07 289.95 S 272.75 W 398.08 223.25 0.37 0.34 -0.27 3322 30.56 222.10 95 3227.30 447.36 326.40 S 305.95 W 447.37 223.15 1.49 -1.47 -0.47 3417 31.00 221.79 95 3308.92 495.96 362.56 S 338.44 W 495.97 223.03 0.49 0.46 -0.33 3511 28.80 221.82 94 3390.40 542.80 397.48 S 369.67 W 542.82 222.92 2.34 -2.34 0.03 . [~ EI~()(~~H . 25 . UNOCALe Red #2 True Survey Inclina- Azimuth Course Vertical Vertical Coordinates Closure Dogleg Build Walk Depth tion Length Depth Section N/S EIW Distance Angle Severity Rate Rate (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/100') (d/100') 3606 28.45 222.28 95 3473.79 588.29 431.28 S 400.16 W 588.33 222.86 0.44 -0.37 0.48 3701 28.80 221.30 95 3557.18 633.78 465.21 S 430.48 W 633.83 222.78 0.62 0.37 -1.03 3796 29.13 222.25 95 3640.30 679.77 499.52 S 461.13 W 679.83 222.71 0.60 0.35 1.00 3891 29.39 222.07 95 3723.18 726.19 533.94 S 492.30 W 726.26 222.68 0.29 0.27 -0.19 3985 29.76 222.74 94 3804.93 772.58 568.20 S 523.59 W 772.65 222.66 0.53 0.39 0.71 4080 29.92 222.42 95 3887.33 819.84 603.00 S 555.57 W 819.92 222.66 0.24 0.17 -0.34 4175 30.11 222.45 95 3969.59 867.36 638.08 S 587.63 W 867.44 222.64 0.20 0.20 0.03 4270 30.42 222.61 95 4051.64 915.23 673.36 S 620.00 W 915.32 222.64 0.34 0.33 0.17 4364 30.80 222.74 94 4132.55 963.09 708.55 S 652.44 W 963.19 222.64 0.41 0.40 0.14 4458 31.11 222.96 94 4213.16 1011.44 744.00 S 685.33 W 1011.54 222.65 0.35 0.33 0.23 4501 31.13 223.35 43 4249.97 1033.66 760.21 S 700.53 W 1033.76 222.66 0.47 0.05 0.91 4588 31.77 222.33 87 4324.19 1079.05 793.50 S 731.39 W 1079.15 222.67 0.96 0.74 -1.17 4638 31.73 222.06 50 4366.71 1105.35 812.99 S 749.06 W 1105.46 222.66 0.30 -0.08 -0.54 4732 31.34 221.06 94 4446.82 1154.49 849.77 S 781.68 W 1154.61 222.61 0.69 -0.41 -1.06 4827 31.08 220.61 95 4528.08 1203.66 887.02 S 813.87 W 1203.82 222.54 0.37 -0.27 -0.47 4921 30.53 219.06 94 4608.81 1251.70 923.98 S 844.70 W 1251.90 222.43 1.03 -0.59 -1.65 5016 30.51 222.67 95 4690.66 1299.88 960.45 S 876.26 W 1300.11 222.38 1.93 -0.02 3.80 5111 29.51 223.07 95 4772.92 1347.39 995.27 S 908.58 W 1347.62 222.39 1.07 -1.05 0.42 5206 31.04 224.81 95 4854.97 1395.28 1029.74 S 941.82 W 1395.49 222.45 1.86 1.61 1.83 5300 30.78 224.26 94 4935.62 1443.55 1064.16 S 975.69 W 1443.75 222.52 0.41 -0.28 -0.59 5395 30.35 223.40 95 5017.42 1491.86 1099.01 S 1 009. 14 W 1492.04 222.56 0.65 -0.45 -0.91 5489 29.73 222.12 94 5098.79 1538.91 1133.55 S 1041.09 W 1539.10 222.57 0.95 -0.66 -1.36 5584 29.51 220.26 95 5181.38 1585.82 1168.88 S 1072.01 W 1586.03 222.52 0.99 -0.23 -1.96 5679 29.88 223.52 95 5263.91 1632.85 1203.90 S 1103.43 W 1633.07 222.51 1.74 0.39 3.43 5773 29.48 223.01 94 5345.57 1679.39 1237.79 S 1135.33 W 1679.61 222.53 0.50 -0.43 -0.54 . ~ El)()(=H . 26 . UNOCALe Red #2 True Survey Inclina- Azimuth Course Vertical Vertical Coordinates Closure Dogleg Build Walk Depth tion Length Depth Section N/S E/W Distance Angle Severity Rate Rate (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/100') (d/100') 5868 28.62 223.58 95 5428.62 1725.52 1271.37 S 1166.96 W 1725.74 222.55 0.95 -0.91 0.60 5963 29.82 223.43 95 5511.53 1771.90 1305.00 S 1198.89 W 1772.11 222.57 1.27 1.26 -0.16 6057 29.28 222.97 94 5593.30 1818.26 1338.80 S 1230.62 W 1818.46 222.59 0.62 -0.57 -0.49 6152 28.65 224.47 95 5676.42 1864.26 1372.05 S 1262.41 W 1864.46 222.62 1.01 -0.66 1.58 6246 29.26 224.85 94 5758.67 1909.76 1404.41 S 1294.40 W 1909.94 222.67 0.68 0.65 0.40 6341 31.89 227.00 95 5840.46 1958.02 1438.00 S 1329.13 W 1958.17 222.75 3.00 2.77 2.26 6436 31.24 226.57 95 5921.40 2007.67 1472.05 S 1365.38 W 2007.78 222.85 0.72 -0.68 -0.45 6530 30.88 226.61 94 6001.93 2056.09 1505.37 S 1400.61 W 2056.17 222.94 0.38 -0.38 0.04 6625 29.74 225.81 95 6083.94 2103.98 1538.55 S 1435.22 W 2104.04 223.01 1.27 -1.20 -0.84 6719 28.57 224.75 94 6166.03 2149.75 1570.76 S 1467.76 W 2149.80 223.06 1.36 -1.24 -1.13 6814 30.85 223.46 95 6248.54 2196.82 1604.58 S 1500.52 W 2196.87 223.08 2.49 2.40 -1.36 6909 31.87 225.10 95 6329.66 2246.25 1639.96 S 1535.04 W 2246.29 223.11 1.40 1.07 1.73 7003 30.81 223.85 94 6409.94 2295.13 1674.84 S 1569.29 W 2295.16 223.14 1.32 -1.13 -1.33 7098 29.62 224.09 95 6492.03 2342.93 1709.25 S 1602.48 W 2342.97 223.15 1.26 -1.25 0.25 7193 28.37 223.46 95 6575.13 2388.98 1742.50 S 1634.34 W 2389.01 223.17 1.35 -1.32 -0.66 7288 29.00 223.42 95 6658.4 7 2434.58 1775.61 S 1665.70 W 2434.61 223.17 0.66 0.66 -0.04 7382 29.95 224.13 94 6740.30 2480.83 1809.00 S 1697.70 W 2480.86 223.18 1.08 1.01 0.76 7411 29.05 223.29 95 6822.98 2527.61 1842.81 S 1730.03 W 2527.64 223.19 1.04 -0.95 -0.88 7512 29.11 223.23 95 6905.76 2574.22 1876.75 S 1761.97 W 2574.24 223.19 0.70 0.69 -0.06 1667 30.32 221.42 95 6988.03 2621.72 1911.89 S 1793.96 W 2621.75 223.18 1.15 0.64 -1.91 7761 29.25 221.71 94 7069.61 2668.39 1946.83 S 1824.93 W 2668.43 223.15 1.15 -1.14 0.31 7856 28.06 221.19 95 7152.97 2713.92 1980.97 S 1855.09 W 2713.96 223.12 1.28 -1.25 -0.55 7951 26.89 222.47 95 7237.25 2757.73 2013.63 S 1884.31 W 2757.78 223.10 1.38 -1.23 1.35 8046 25.66 221.76 95 7322.44 2799.77 2044.82 S 1912.52 W 2799.83 223.09 1.34 -1.29 -0.75 8140 25.67 220.75 94 7407.16 2840.45 2075.43 S 1939.36 W 2840.52 223.06 0.47 0.01 -1.07 . [=I EI1()(::H . 27 . UNOCALe Red #2 True Survey Inclin- Azimuth Course Vertical Vertical Coordinates Closure Dogleg Build Walk Depth ation Length Depth Section N/S EIW Distance Angle Severity Rate Rate (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/1 00') (d/100') 8203 24.72 219.85 63 7464.17 2867.23 2095.88 S 1956.71 W 2867.30 223.03 1.63 -1.51 -1 .43 8266 23.17 219.30 63 7521.75 2892.74 2115.58 S 1973.01 W 2892.83 223.00 2.49 -2.46 -0.87 8329 23.07 219.65 63 7579.69 2917.41 2134.68 S 1988.73 W 2917.52 222.97 0.27 -0.16 0.56 8393 23.82 219.78 64 7638.40 2942.82 2154.26 S 2005.00 W 2942.94 222.94 1.17 1.17 0.20 8456 22.94 221.11 63 7696.23 2967.79 2173.29 S 2021.22 W 2967.91 222.92 1.63 -1.40 2.11 8582 20.63 220.29 126 7813.22 3014.49 2208.73 S 2051.72 W 3014.64 222.89 1.85 -1.83 -0.65 8708 18.94 220.54 126 7931.78 3057.08 2241 .20 S 2079.37 W 3057.25 222.85 1.34 -1.34 0.20 8834 18.05 220.87 126 8051.27 3097.00 2271.51 S 2105.43 W 3097.19 222.83 0.71 -0.71 0.26 8960 16.81 219.81 126 8171.48 3134.69 2300.26 S 2129.87 W 3134.89 222.80 1.02 -0.98 -0.84 9087 15.16 220.04 127 8293.57 3169.59 2327.09 S 2152.31 W 3169.82 222.77 1.30 -1.30 0.18 9213 14.72 219.24 126 8415.31 3202.01 2352.10 S 2173.04 W 3202.26 222.73 0.39 -0.35 -0.63 9339 14.20 218.62 126 8537.32 3233.37 2376.57 S 2192.81 W 3233.65 222.70 0.43 -0.41 -0.49 9465 13.48 218.99 126 8659.66 3263.41 2400.06 S 2211.70 W 3263.72 222.66 0.58 -0.57 0.29 9591 12.34 217.69 126 8782.47 3291.45 2422.13 S 2229.17 W 3291.79 222.62 0.93 -0.90 -1.03 9718 12.18 217.75 127 8906.58 3318.28 2443.46 S 2245.67 W 3318.66 222.58 0.13 -0.13 0.05 9718 12.18 217.75 127 8906.58 3318.28 2443.46 S 2245.67 W 3318.66 222.58 0.13 -0.13 0.05 9844 11.70 217.02 126 9029.85 3344.20 2464.17 S 2261.50 W 3344.62 222.54 0.40 -0.38 -0.58 9970 11.35 218.37 126 9153.31 3369.25 2484.09 S 2276.88 W 3369.71 222.51 0.35 -0.28 1.07 10033 10.63 218.12 63 9215.15 3381.21 2493.53 S 2284.32 W 3381.68 222.49 1.15 -1.14 -0.40 10100 10.63 218.12 67 9281.00 3393.51 2503.25 S 2291.95 W 3394.01 222.48 0.00 0.00 0.00 . [~ EI)()(~H . 28 . UNOCALe Red #2 DAILY MUD PROPERTIES Date FI Depth Den FV PV YP Gels API Cake Solids NAPlWate Sand PH CI Ca Temp FiI r 8/14/04 - 77 8.7 70 10 31 12/14/15 13.6 1/0 -0.5 0/98 0.10 9.0 29000 80 8/15/04 61 92 8.7 62 10 27 12/14/16 13.6 1/0 -0.6 0/98 0.25 8.8 30000 80 8/16/04 70 1530 8.9 54 11 29 12/16/18 6.6 1/0 2.1 0/95.5 0.75 8.8 29000 200 8/17/04 - 1530 8.9 47 11 23 8/13/16 7.0 1/0 2.2 0/95.5 0.50 8.8 28000 280 8/18/04 - 1530 8.9 45 10 23 8/13/15 7.0 1/0 2.2 0/95.5 0.50 8.5 28000 280 8/19/04 84 3295 9.0 45 11 19 7/10/12 6.4 1/0 2.5 0/95 0.25 8.7 30000 260 8/20/04 - 4550 9.2 45 15 23 6/10/12 5.0 1/0 4.1 0/93.5 0.25 9.1 29000 240 8/21/04 - 4550 9.2 45 13 18 5/7/8 5.2 1/0 4.3 0/93.5 0.10 9.2 27000 220 8/22/04 68 4751 9.2+ 46 13 17 5/7/8 5.2 1/0 4.4 0/93 0.10 8.5 32000 320 8/23/04 98 6502 9.2 56 15 23 6/14/17 4.0 1/0 4.3 2.5/91 0.10 8.7 28000 280 8/24/04 95 8040 9.3+ 48 16 16 4/14/18 4.0 1/2 5.8 3/89 0.5 8.6 28000 220 8/25/04 98 9520 9.4 49 13 12 5/10/15 4.0 1/2 5.7 3/89 0.10 8.5 29500 280 8/26/04 100 10100 9.4 53 23 13 5/8/12 3.5 1/2 5.5 3/89 0.10 7.5 32000 280 (TD) 8/27/04 72 10100 9.6 55 22 13 4/8/10 3.5 1/2 6.5 3/88 0.10 9.1 32000 280 8/28/04 74 10100 9.8 52 21 12 4/7/9 3.4 1/2 7.6 3/87 0.10 9.5 31500 240 8/29/04 78 10100 9.8 54 23 14 5/12/15 3.6 1/2 7.6 3/87 0.10 10.0 31500 220 9/1/04 90 10100 10.0 56 21 13 4/8/10 3.5 1/2 8.8 3/86 0.10 10.5 30000 240 . ~ EP~(~H 29 . UNOCALe Red #2 BIT RECORD BIT RECORD Red Pad #2 Bit Grading I 0 D L B G 0 R N U U 0 E A T E N T L C A U H A E E L A R G E S R R T I E R 0 C I N N R R H 0 G C 0 0 A N S H P W W R A U S S R L L E D Bit Size Make Type SIN Jets Depth Depth Drilled Hours Ave Ave Ave Ave No. In Out FtlHr WOB RPM PSI 1 12.25 HTC MX-C 1 5044157 3x15, 60' 1530' 1470' 16.3 112 10.3 107 1011 1 2 N A X I N TD 1x12 0 0 2 8.5 HYC DS70FN 206364 6X12 1530' 4550' 3020 23.7 154 4.8 61 3658 1 1 W A X I C TD PV T T 3 6.125 HC HCM505 7003462 5X12 4550' 10100 5549 64.6 125 5.6 72 2170 0 3 W S X I E TD Z T R . [:I EP~(=H 30 . . UNOCAL DAIL Y WELLSITE REPORT U EPOCH RED #2 REPORT FOR DATE Aug 14, 2004 DEPTH 75.00 PRESENT OPERATION WAIT ON MILL BIT TIME 11:59 PM YESTERDAY 61.00 24 HOUR FOOTAGE 14 CASING INFORMATION 16" @ 76' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HTC MX-C1 5044157 60' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 264.7 @ 71.00 21.2 @ 75.00 118.5 21.17998 FT/HR SURFACE TORQUE 1120 @ 61.00 894 @ 62.00 1105.2 1107.16077 AMPS WEIGHT ON BIT 1 @ 75.00 0 @ 63.00 0.4 1.25478 KLBS ROTARY RPM 76 @ 71.00 74 @ 61.00 81.2 75.82498 RPM PUMP PRESSURE 809 @ 61.00 796 @ 75.00 861.9 796.57257 PSI DRILLING MUD REPORT DEPTH 75' MW 8.7 VIS 70 PV 10 YP 31 FL 13.6 Gels 12/14/15 CL- 29000 FC 1/0 SOL -0.5 SO 0.10 OIL 0 MBL pH 9.0 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 61.00 0 @ 75.00 0.3 TRIP GAS 0 CUTTING GAS 0 @ 75.00 o @ 75.00 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 0 @ 75.00 o @ 75.00 0.0 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 75.00 o @ 75.00 0.0 AVG 0 PROPANE (C-3) 0 @ 75.00 o @ 75.00 0.0 CURRENT 0 BUTANE (C-4) 0 @ 75.00 o @ 75.00 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 75.00 o @ 75.00 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLE CATCHERS ON UNDER SURFACE CASING PRESENT LITHOLOGY DAILY ACTIVITY NIPPLE UP DIVERTER AND TEST, INSTALL BAILS AND 4" ELEVATORS, MIX SPUD MUD, PICK UP 4" DRILL SUMMARY PIPE AND STAND BACK, PICK UP BHA, TEST LINES TO 3500 PSI, DRILL OUT TO THE BOTTOM OF THE CONDUCTOR (NO DETECTABLE GAS), TORQUED UP, PULL OUT OF THE HOLE AND INSPEC . . EPOCH PERSONNEL T THE BIT = BIT IS OK, RUN IN THE HOLE AND ATTEMPT TO DRILL OUT = NO GOOD, ON BOARD CIRCULATE AND CONDITION THE DRILLING MUD AND WAIT ON MILL BIT. REPORT BY $1675 DAILY 2 COST . UNOCAL AFE #162842 DAIL Y WELLSITE REPORT U EPOCH RED #2 REPORT FOR DATE Aug 15, 2004 DEPTH 317.00 PRESENT OPERATION DRILLING TIME 00:09:12 YESTERDAY 75.00 24 HOUR FOOTAGE 242 CASING INFORMATION 16" @ 76' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HTC MX-C1 5044157 76' 3.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 404.8 @ 170.00 1.6 @ 77.00 154.1 280.22742 FT/HR SURFACE TORQUE 2399 @ 79.00 533 @ 155.00 1392.3 1597.51575 AMPS WEIGHT ON BIT 10 @ 228.00 0 @ 78.00 6.3 9.81635 KLBS ROTARY RPM 131 @ 225.00 22 @ 79.00 97.5 109.17532 RPM PUMP PRESSURE 864 @ 315.00 31 @ 77.00 784.4 864.30396 PSI DRILLING MUD REPORT DEPTH 92' MW 8.7 VIS 62 PV 10 YP 27 FL 13.6 Gels 12/14/16 CL- 30000 FC 1/0 SOL -0.6 SD 0.25 OIL 0 MBL pH 8.8 Ca+ 80 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ 246.00 0 @ 305.00 0.3 TRIP GAS 0 CUTTING GAS 0 @ 317.00 o @ 317.00 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 120 @ 246.00 1@ 305.00 54.4 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 317.00 o @ 317.00 0.0 AVG 0 PROPANE (C-3) 0 @ 317.00 o @ 317.00 0.0 CURRENT 0 BUTANE (C-4) 0 @ 317.00 o @ 317.00 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ 317.00 o @ 317.00 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLE CATCHERS ON UNDER SURFACE CASING PRESENT LITHOLOGY WAIT ON MILL, MAKE UP 8.5" BIT AND SUB, DRILL TO 92', PICK UP 12.25" STRING MILL AND OPEN CASING TO 80', PULL OUT OF THE HOLE AND LAY DOWN THE MILL, PICK UP COLLARS AND 12.25" BIT, TAG UP AT 75' DAILY AND UNABLE TO DRILL, PICK UP STRING MILL AND MILL ON CASING AT 75', PICK UP DRILLING ASSEMBLY ACTIVITY AND TAG UP AT 75', PICK UP FLAT MILL AND MILL FROM 72' TO 76', PICK UP 12.25" BIT, TAG UP AT 72', PULL SUMMARY OUT OF THE HOLE AND WAIT ON NEW MILL, RUN IN THE HOLE WITH 13" TAPERED MILL AND TAG AT THE WELLHEAD, PICK UP 12.75" FLAT BOTTOMED MILL, TAG AT WELLHEAD, PULL OUT OF THE HOLE AND PICK UP 12.25" BIT, REAM THROUGH TO BOTTOM AND DRESS THE SHOE, DRILL FORMATION TO MIDNIGHT. . . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . UNOCAL AFE # 162842 DAILY WELLSITE REPORT EPOCH RED #2 REPORT FOR DATE 8/16/04 DEPTH 1530.00000 PRESENT OPERATION CIRC @ CASING POINT TIME 11:59 PM YESTERDAY 800.00 24 HOUR FOOTAGE 730 CASING INFORMATION 16" @ 76' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HTC MX-C1 5044157 3X15,1X12 76' 1530 1454' 16.3 TO DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 208.4 @ 1364.00 9.2 @ 1020.00 97.4 75.35200 FT/HR SURFACE TORQUE 3473 @ 1480.00 668 @ 897.00 2011.8 2926.12800 AMPS WEIGHT ON BIT 21 @ 1077.00 0 @ 1333.00 11.7 10.02200 KLBS ROTARY RPM 118 @ 1333.00 52 @ 992.00 110.9 104.74500 RPM PUMP PRESSURE 1260 @ 1489.00 378 @ 1385.00 1133.5 1240.97000 PSI DRILLING MUD REPORT DEPTH 1530' MW 8.9 VIS 54 PV 11 YP 29 FL 6.6 Gels 12/16/18 CL- 29000 FC 1/0 SOL 2.1 SD 0.75 OIL 0 MBL pH 8.8 Ca+ 200 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 39 @ 1478.00 o @ 906.00 8.0 TRIP GAS 0 CUTTING GAS 0 @ 1530.00000 o @ 1530.00000 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 7025 @ 1449.00 38 @ 906.00 1420.7 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 1530.00000 o @ 1530.00000 0.0 AVG 0 PROPANE (C-3) 0 @ 1530.00000 o @ 1530.00000 0.0 CURRENT 0 BUTANE (C-4) 0 @ 1530.00000 o @ 1530.00000 0.0 CURRENT BACKGROUND/AVG 3 PENTANE (C-5) 0 @ 1530.00000 o @ 1530.00000 0.0 HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLE CATCHERS ON UNDER SURFACE CASING PRESENT LITHOLOGY DAIL Y ACTIVITY DRILL FORMATION TO 1530', CIRCULATE THE HOLE CLEAN, PUMP OUT OF THE HOLE TO 5" HWDP, SUMMARY RUN IN THE HOLE AND CIRCULATE BOTTOMS UP, DROP CARBIDE = 3 BBLS OVER GAUGED HOLE . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . . UNOCAL 162842 DAIL Y WELLSITE REPORT ~ EPOCH RED #2 REPORT FOR DATE 8/17/04 DEPTH 1530.00000 PRESENT OPERATION NIPPLE UP BOPE TIME 11 :59 pm YESTERDAY 1530.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9.625" @ 1521' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 1439' 0.2 WEST 1439' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 1 12.25" HTC MX-C1 5044157 3X15, 1X12 76 1530 1454' 16.3 TO 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 1530' MW 8.9 VIS 47 PV 11 YP 23 FL 7.0 Gels 8/13/16 CL- 28000 FC 1/0 SOL 2.2 SD 0.50 OIL 0 MBL pH 8.8 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 4 @ 1530 .5 @ 1530 1.5 TRIP GAS 4 @1530' CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SAMPLE CATCHERS UNDER SURFACE CASING PRESENT LITHOLOGY PULL OUT OF THE HOLE WITH NO PROBLEMS, LAY DOWN BHA AND CLEAR THE FLOOR, RIG UP AND RUN 9 5/8" CASING WITH 4' OF SOFT FILL ON BOTTOM, CIRCULATE BOTTOMS UP (4 UNITS OF TG), PICK UP DAILY HANGER AND LAND CASING, RIG UP CEMENT HEAD AND CEMENT: 25 BBL MUD PUSH SPACER @ 10.5#,78 ACTIVITY BBL 12.8# LEAD, 40 BBL 15.8# TAIL. BUMP PLUG WITH 107 BBL OF PRETREATED MUD, SWITCH TO SUMMARY CEMENTERS AND PRESSURE UP TO 3500 PSI AND HOLD FOR 30 MINUTES, RIG DOWN CEMENTERS AND CLEAN/FLUSH THE DIVERTER WITH SHAKERS, RIG UP GYRO AND RUN IN THE HOLE TO 1439' = .2 DEGREES WEST, RIG DOWN GYRO, ORIENT AND INSTALL WELLHEAD AND TEST TO 5000 PSI FOR 15 MINUTES, NIPPLE UP BOPE. . . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 · UNOCAL AFE #162842 DAILY WELLSITE REPORT ~ EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 18, 2004 DEPTH 1744.00 PRESENT OPERATION DRilLING TIME 11 :59 PM YESTERDAY 1531.00 24 HOUR FOOTAGE 213 CASING INFORMATION 95/8" @ 1521' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HYC DS70FNPV 206364 6X12 1531 1.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 202.4 @ 1680.00 14.0 @ 1551.00 153.1 168.66629 FT/HR SURFACE TORQUE 2234 @ 1719.00 668 @ 1669.00 1486.7 1408.01929 AMPS WEIGHT ON BIT 4 @ 1616.00 0 @ 1698.00 2.2 0.24876 KLBS ROTARY RPM 83 @ 1671.00 31 @ 1669.00 71.6 82.89738 RPM PUMP PRESSURE 1752 @ 1628.00 746 @ 1551.00 1602.9 1597.00488 PSI DRILLING MUD REPORT DEPTH 1530' MW 8.9 VIS 45 PV 10 YP 23 FL 7.0 Gels 8/13/15 CL- 28000 FC 1/0 SOL 2.2 SD 0.50 OIL 0 MBl pH 8.5 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 184 @ 1733.00 1 @ 1539.00 31.2 TRIP GAS 0 @ 1530' CUTTING GAS 0 @ 1744.00 0 @ 1744.00 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 33379 @ 1733.00 214 @ 1539.00 5980.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 16 @ 1733.00 0 @ 1743.00 0.6 AVG 0 PROPANE (C-3) 0 @ 1744.00 0 @ 1744.00 0.0 CURRENT 0 BUTANE (C-4) 0 @ 1744.00 0 @ 1744.00 0.0 CURRENT BACKGROUND/AVG 31 PENTANE (C-5) 0 @ 1744.00 0 @ 1744.00 0.0 HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAY AND SILT, SAND, COAL PRESENT LITHOLOGY 80% SILT, 20% COAL NIPPLE UP BOPE AND TEST, HAWJAW FAILURE-RIG DOWN, RIG DOWN 4" TEST JOINT, PICK UP 3.5" TEST DAILY JOINT, TEST UPPER RAMS, PULL TEST PLUG, LAY DOWN TEST JOINT, SET WEAR RING, PICK UP BHA AND ACTIVITY RUN IN THE HOLE, TAG CEMENT AT 1469', DRILL OUT CEMENT AND 20' OF NEW HOLE, CIRCULATE SUMMARY BOTTOMS UP MW IN 8.9 MW OUT 8.9, RIG UP SCHLUMBERGER AND PERFORM LEAK OFF TEST:: 13.72 PPG EMW, DRILL FORMATION. · EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 w/ SAMPLE CATCHERS · REPORT BY LEES F. BROWNE JR. . UNOCAL AFE #162842 DAILY WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 19, 2004 DEPTH 3516.00 PRESENT OPERATION DRILLING TIME 11 :59 pm YESTERDAY 1744.00 24 HOUR FOOTAGE 1772 CASING INFORMATION 9.625" @ 1521' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3417' 31.00 221.79 3308.92 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HYC DS70FNPV 206364 6X12 1531 15.7 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 416.0 @ 2019.00 9.8 @ 3292.00 160.6 66.81346 FT/HR SURFACE TORQUE 4738 @ 3456.00 123 @ 2145.00 1744.4 144.81268 AMPS WEIGHT ON BIT 22 @ 3506.00 0 @ 2554.00 4.5 5.73099 KLBS ROTARY RPM 84 @ 2039.00 -3 @ 2640.00 51.6 -0.12169 RPM PUMP PRESSURE 2352 @ 3452.00 1016 @ 2703.00 1811.3 2085.91748 PSI DRILLING MUD REPORT DEPTH 3295' MW 9.0 VIS 45 PV 11 YP 19 FL 6.4 Gels 7/10/12 CL- 30000 FC 1/0 SOL 2.5 SD 0.25 OIL 0 MBL pH 8.7 Ca+ 260 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 254 @ 2895.00 2 @ 2992.00 53.4 TRIP GAS 0 CUTTING GAS 0 @ 3516.00 0 @ 3516.00 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 49402 @ 3148.00 591 @ 2992.00 10392.9 CONNECTION GAS HIGH 0 ETHANE (C-2) 49 @ 2897.00 0 @ 2712.00 6.2 AVGO PROPANE (C-3) 11 @ 2897.00 0 @ 3131.00 0.3 CURRENT 0 BUTANE (C-4) 0 @ 3516.00 0 @ 3516.00 0.0 CURRENT BACKGROUND/AVG 25 PENTANE (C-5) 0 @ 3516.00 0 @ 3516.00 0.0 HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY CLAY, SILT, SAND COAL PRESENT LITHOLOGY 100% TUFFACEOUS CLAYSTONE DAILY ACTIVITY SUMMARY DRILL FORMATION . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BROWNE JR. · UNOCAL AFE #162842 DAft Y WELLSfTE REPORT ~ EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 20, 2004 DEPTH 4550.00 PRESENT OPERATION TRIP OUT TO RUN CASING TIME 11 :59 PM YESTERDAY 3516.00 24 HOUR FOOTAGE 1034 CASING INFORMATION 9.625" @ 1521' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4501 31.13 223.35 4249.97 4550 4292' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 8.5 HYC DS70FNPV 206364 6X12 1531 4550 3020 23.77 TO DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 303.6 @ 3713.00 13.8 @ 4508.00 143.7 172.00195 FT/HR SURFACE TORQUE 5482 @ 4077.00 143 @ 3519.00 3653.6 4522.23438 AMPS WEIGHT ON BIT 13 @ 4077.00 0 @ 3941.00 5.8 7.45029 KLBS ROTARY RPM 82 @ 4029.00 0 @ 3528.00 74.6 73.48222 RPM PUMP PRESSURE 2740 @ 4527.00 748 @ 3658.00 2327.0 2679.88599 PSI DRILLING MUD REPORT DEPTH 4550' MW 9.2 VIS 45 PV 15 YP 23 FL 5.0 Gels 6/10/12 CL- 29000 FC 1/0 SOL 4.1 SD 0.25 OIL 0 MBL pH 9.1 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 237 @ 3633.00 0 @ 3749.00 61.5 TRIP GAS CUTTING GAS 0 @ 4550.00 o @ 4550.00 0.0 WIPER GAS 100 @ 4550' CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 46646 @ 3633.00 21 @ 3750.00 11601.5 CONNECTION GAS HIGH 0 ETHANE (C-2) 52 @ 3633.00 o @ 3798.00 7.3 AVG 0 PROPANE (C-3) 5 @ 4503.00 o @ 4459.00 0.1 CURRENT 0 BUTANE (C-4) 0 @ 4550.00 o @ 4550.00 0.0 CURRENT BACKGROUND/AVG 25 PENTANE (C-5) 0 @ 4550.00 o @ 4550.00 0.0 HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY CLAY, SILT, COAL, CARB SHALE, SAND PRESENT LITHOLOGY 4550' = 10% COAL, 20% CARBON SHALE, 50% TUFFACEOUS CLAYSTONE, 20% TUFFACEOUS SILT DRILL FORMATION TO 4505', CIRCULATE BOTTOMS UP AND DROP CARBIDE = 8 BBL WASH OUT, DRILL TO DAILY NEW TO @ 4507', CIRCULATE BOTTOMS UP = RAT HOLE IN A COAL, DRILL TO NEW TO @ 4550', CIRCULATE ACTIVITY BOTTOMS UP AND PULL OUT OF THE HOLE, HOLE WAS TIGHT AT 4076', BACK REAM TO 3600', HOLE WAS SUMMARY IN GOOD SHAPE FROM 3600' ON, RUN IN THE HOLE AND CIRCULATE BOTTOMS UP = 100 UNITS WIPER GAS, CIRCULATE A HIGH VIS SWEEP. · · EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BROWNE JR. . UNOCAL AFE #162842 DAILY WELLSITE REPORT ~ EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 21, 2004 DEPTH 4550.00 PRESENT OPERATION TEST BOPE TIME 11 :59 PM YESTERDAY 4550.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4550' 4292' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN 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 4550' MW 9.2 VIS 45 PV 13 YP 18 FL 5.2 Gels 5/7/8 CL- 27000 FC 1/0 SOL 4.3 SD 0.10 OIL 0 MBL pH 9.2 Ca+ 220 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 5 @ 4550 o @ 4550 2 TRIP GAS 5 @4550' 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 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY 7" CASING TO 4538' PRESENT LITHOLOGY CIRCULATE THE HOLE CLEAN, PULL OUT OF THE HOLE WITH NO PROBLEMS, MONITOR THE WELL, LAY DAILY DOWN BHA, PULL WEAR BUSHING, PREP TO RUN 7" CASING, RUN IN THE HOLE WITH CASING WITH NO ACTIVITY PROBLEMS, CIRCULATE BOTTOMS UP WITH 5 UNITS OF TRIP GAS, LAY DOWN 2 JOINTS OF CASING AND SUMMARY PICK UP HANGER AND LANDING JOINT, MAKE UP CEMENT HEAD AND CIRCULATE THE HOLE CLEAN, PRESSURE TEST LINES TO 4000 PSI, CEMENT HOLE AND BUMP THE PLUG WITH MUD, RIG DOWN CEMENTERS, CLEAR THE RIG FLOOR AND RIG UP TO TEST BOPE. . . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BROWNE JR. . UNOCAL AFE #162842 DAIL Y WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 22, 2004 DEPTH 5130.00 PRESENT OPERATION DRILLING TIME 11:59 PM YESTERDAY 4550.00 24 HOUR FOOTAGE 580 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 5177' 4829.5' SURVEY DATA 4921 30.53 219.06 4608.81 4827 31.08 220.61 4528.08 4732 31.34 221.06 4446.82 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125 HC HCM505Z 7003462 5X12 4550 6.2 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 382.2 @ 5083.00 22.3 @ 4609.00 109.5 114.25781 FT/HR SURFACE TORQUE 4558 @ 5111.00 124 @ 4998.00 3414.8 3638.48364 AMPS WEIGHT ON BIT 10 @ 5111.00 0 @ 4570.00 5.7 8.24786 KLBS ROTARY RPM 80 @ 4653.00 0 @ 5014.00 69.2 80.18075 RPM PUMP PRESSURE 2679 @ 4550.00 898 @ 4570.00 1624.4 1790.03235 PSI DRILLING MUD REPORT DEPTH 4751' MW 9.2+ VIS 46 PV 13 YP 17 FL 5.2 Gels 51718 CL- 32000 FC 1/0 SOL 4.4 SD 0.10 OIL 0 MBL pH 8.5 Ca+ 320 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 327 @ 4937.00 5 @ 4572.00 70.6 TRIP GAS 18 @ 4550' CUTTING GAS 0 @ 5130.00 0 @ 5130.00 0.0 WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 66046 @ 4937.00 1123 @ 4572.00 13892.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 50 @ 4937.00 0 @ 4559.00 9.4 AVG 0 PROPANE (C-3) 10 @ 4937.00 0 @ 5080.00 0.6 CURRENT 0 BUTANE (C-4) 0 @ 5130.00 0 @ 5130.00 0.0 CURRENT BACKGROUND/AVG 45 PENTANE (C-5) 0 @ 5130.00 0 @ 5130.00 0.0 HYDROCARBON SHOWS NO SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY TUFFACEOUS CLAY, SILT AND COAL PRESENT LITHOLOGY 5160' = 50% COAL, 50% CLAY DAILY TEST BOPE, INSTALL WEAR RING, MAKE UP BHA, MAKE UP 6 STANDS OF HWDP, SINGLE IN HOLE, TAG ACTIVITY UP AT 4451', DRILL OUT FLOAT COLLAR, CEMENT, SHOE AND RAT HOLE PLUS 20' OF NEW HOLE, SUMMARY CIRCULATE THE HOLE CLEAN (TRIP GAS = 18 UNITS), MW IN/OUT = 9.2, PERFORM LOT TO 12.5 PPG AND DRILL FORMATION . . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BROWNE JR. · UNOCAL AFE #162842 DAILY WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 23, 2004 DEPTH 6785.00 PRESENT OPERATION DRILLING TIME 23:44:57 YESTERDAY 5130.00 24 HOUR FOOTAGE 1655 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 6530' 30.88 226.61 6001.93 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIB/C PULLED 2 6.125" HC HCM505Z 7003462 5X12 4550 20.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 1676.1 @ 6030.00 10.7 @ 6244.00 149.4 236.13281 FTIHR SURFACE TORQUE 5822 @ 6517.00 123 @ 5178.00 4130.4 5319.36670 AMPS WEIGHT ON BIT 28 @ 5665.00 0 @ 6290.00 5.3 6.21893 KLBS ROTARY RPM 80 @ 5147.00 -1 @ 6262.00 69.8 76.59021 RPM PUMP PRESSURE 2575 @ 6212.00 1334 @ 5556.00 2128.7 2223.01782 PSI DRILLING MUD REPORT DEPTH 6502' MW 9.2 VIS 56 PV 15 YP 23 FL 4.0 Gels 6/14/17 CL- 28000 FC 1/0 SOL 4.3 SD 0.10 OIL 2.5 MBL pH 8.7 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 675 @ 6400.00 13 @ 6317.00 137.7 TRIP GAS 0 CUTTING GAS 0 @ 6785.00 0 @ 6785.00 0.0 WIPER GAS 255 @ 6028' CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 169132 @ 6399.00 1033 @ 6001.00 26339.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 168 @ 6404.00 -3 @ 5373.00 24.7 AVG 0 PROPANE (C-3) 61 @ 6404.00 0 @ 6229.00 4.5 CURRENT 0 BUTANE (C-4) 0 @ 6785.00 0 @ 6785.00 0.0 CURRENT BACKGROUNDIAVG 50 PENTANE (C-5) 0 @ 6785.00 0 @ 6785.00 0.0 HYDROCARBON SHOWS THREE SHOW ZONES 6285-6310' 6450' TO 6500' 6730' TO 6745' INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION 6285-63106450-65006730-6745 SN/SS SNISS SN 50-228-50 80-325-150 150-568-200 LITHOLOGY PICKING UP GAS SANDS AT 6285' PRESENT LITHOLOGY 6780' = 50% SAND, 10% CONGLOMERATE, 40% TUFFACEOUS CLAY DAILY ACTIVITY DRILL TO 6028', SHORT TRIP TO 5366', A FEW MINOR OVER PULLS WI NO PUMPING, RUN IN THE SUMMARY HOLE LOOKED GOOD, WIPER GAS =255 UNITS, DRILL AHEAD · · EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BROWNE JR. UNOCAL AFE #162842 RED #2 REPORT FOR SHANE HAUCK DATE Aug 24, 2004 TIME 11 :59 PM . DAILY WELLSITE REPORT g EPOCH DEPTH 8281.00 YESTERDAY 6785.00 24 HOUR FOOTAGE 1496 CASING INFORMATION 7" @ 4538' DEPTH 8046' 7951 7856 7761 7667 SURVEY DATA BIT INFORMATION NO. SIZE 2 6.125" TYPE HC HCM505Z . DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.3+ VIS FC 1/2 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL 8035' TO 8095' INCLINATION 25.66 26.89 28.06 29.25 30.32 AZIMUTH 221.76 222.47 221.19 221.71 221.42 INTERVAL SIN JETS IN OUT FOOTAGE 7003462 5X12 4550 HIGH 476.9 @ 6981.00 7758 @ 8152.00 15 @ 6800.00 81 @ 7908.00 2801 @ 7567.00 DEPTH 8040' 48 PV 16 YP 5.8 SD 0.05 OIL 16.4 SLIDE o SLIDE 1190 HIGH LOW 1097 @ 7139.00 12 @ 7605.00 o @ 8281.00 ( @ 8281.00 CHROMATOßRAPHY (ppm) 199142 @ 7139.00 25 6 @ 7605.00 766 @ 7142.00 0 @ 6800.00 67 @ 8257.00 0 @ 7780.00 5 @ 8172.00 0 @ 8160.00 o @ 8281.00 0 @ 8281.00 8035' TO 8095' LOW @ 7273.00 @ 6815.00 @ 7071.00 @ 7274.00 @ 7638.00 16 3.0 FL 4.0 MBL PRESENT OPERATION DRILLING HOURS 33.2 AVERAGE 144.6 5708.3 6.0 70.5 2312.3 Gels 4/14/18 pH 8.6 VERTICAL DEPTH 7322.44' 7237.25 7152.97 7069.61 6988.03 CONDITION T/B/C REASON PULLED CURRENT AVG 140.08414 7122.49902 8.45775 80.77259 2365.44946 FT/HR AMPS KLBS RPM PSI CL- 28000 Ca+ 220 CCI TRIP GAS 0 WIPER GAS 480 @ 7637 SURVEY 0 CONNECTION GAS HIGH 90 @ 7164' AVG 20 CURRENT 20 CURRENT BACKGROUND/AVG 93 GAS BEFOR 150 DURING 413 AFTER 175 AVERAGE 162.8 0.0 30309.7 45.2 11.0 0.0 0.0 DESCRIPTION C1 TO C3 NOTED, COARSE DOWNWARD LITHOLOGY/REMARKS SAND/CONGLOMERATE SAND LITHOLOGY SILT, CLAY, COAL PRESENT LITHOLOGY 8275' 70% SILT, 20% CLAY, 1 % ASH DAILY ACTIVITY DRILL TO 7598', CIRCULATE BOTT)MS UP, MONITOR THE WELL, SHORT TRIP 15 STANDS, 30K OVER SUMMARY PULL AT 6786', BACK REAM FROM 6786' TO 6781', CONTINUE SHORT TRIP, RUN IN THE HOLE AND WASH THE LAST 25' TO BOTTOM WIPER ~AS ::; 480 UNITS, DRILL AHEAD . UNOCAL AFE #162842 DHIL Y WELLSITE REPORT ~ EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 25, 2004 DEPTH 9570.00 PRESENT OPERATION DRILLING TIME 23: 15:22 YESTERDAY 8281.00 24 HO UR FOOTAGE 1289 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 9213 14.72 219.24 8415.31 9087 15.16 220.04 8293.57 SURVEY DATA 16.81 219.81 8171.48 8960 8834 18.05 220.87 8051.27 8708 18.94 220.54 7931.78 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 2 6.125" HC HCM505Z 7003462 5X12 4550 48.4 DRILLING PARAMETERS H GH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 312.0 @ 8902.00 8.1 @ 9526.00 113.1 98.43750 FT/HR SURFACE TORQUE 9456 @ 9349.00 136 @ 8355.00 7747.9 8061.14063 AMPS WEIGHT ON BIT 14 @ 8975.00 0 @ 9462.00 6.9 9.63935 KLBS ROTARY RPM 81 @ 8967.00 0 @ 8341.00 75.8 73.02290 RPM PUMP PRESSURE 2619 @ 8968.00 1442 @ 9469.00 2289.9 2068.85718 PSI DRILLING MUD REPORT [ EPTH 9520' MW 9.4 VIS 49 PV 13 YP 12 FL 4.0 Gels 5/10/15 CL- 29500 FC 1/2 SOL 5.7 SD 0.0 OIL 3.0 MBL pH 8.5 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 1187 @ 9182.00 21 @ 8400.00 146.7 TRIP GAS 0 CUTTING GAS 0 @ 9570.00 0 @ 9570.00 0.0 WIPER GAS 0 CHROM A OGRAPHY (ppm) SURVEY 0 METHANE (C-1) 229049 @ 9180.00 041 @ 8400.00 27111.4 CONNECTION GAS HIGH 45@ 8521' ETHANE (C-2) 551 @ 9180.00 9 @ 8345.00 60.4 AVG 10 PROPANE (C-3) 162 @ 9180.00 0 @ 8347.00 21.0 CURRENT 0 BUTANE (C-4) 35 @ 9315.00 0 @ 9514.00 2.4 CURRENTBACKGROUND~VG32 PENTANE (C-5) 0 @ 9570.00 0 @ 9570.00 0.0 HYDROCARBON SHOWS #1 9285' TO 9318' / #2 9345' TO 9357' INTERVAL LITHOLOGY /REMA R~S GAS DESCRIPTION (9285' TO 9318') AND SANDISANDSTON E/CpNGLOMERA TE (100-1136-100) C1 TO C4 NOTED IN GAS KICKS, (9345' TO 9357') SAND AN D (100-544-80) FAIR TO POOR POROSITY LITHOLOGY SILT, CLAY, COAL, CA RB( N SHALE PRESENT LITHOLOGY 9570' = 50% SILT, 40% CLJ Y 10% CARBONACEOUS SHALE DAILY ACTIVITY SUMMARY EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 REPORT BY LEES F. BRO WNf: JR. . UNOCAL AFE#162842 RED #2 REPORT FOR SHANE HAUCK DATE Aug 26, 2004 TIME 11:59 PM U EPOCH DJ~IL Y WELLSITE REPORT . PRES~NT OPERATION WIPER TRIP @ TO DEPTH 10100.00 "ESTERDAY 9570.00 24 HOUF FOOTAGE 530 CASING INFORMATION 7" @ 4538' DEPTH 10100 9844 9718 9591 9465 VERTICAL DEPTH 9281.5' 9029.88 8906.60' 8782.50' 8659.69' CONDITION T/B/C INCLINATION AZIMUTH 11.7 12.18 12.34 13.48 INTERVAL JETS IN OUT 5X12 4500 10100 217.02 217.75 217.69 218.99 SURVEY DATA REASON PULLED TO BIT INFORMATION NO. SIZE TYPE 3 6.125" HC HCM505Z SIN 7003462 FOOTAGE 5550' HOURS 64.63 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.4 VIS 53 FC 1/2 SOL 5.5 MWD SUMMARY INTERVAL TO TOOLS CURRENT AVG 9.11400 10026.80273 1.14300 84.44367 2154.83276 HGH LOW 158.4 @ 9701.00 9.1 @ 10100.00 10080 @ 9791.00 5564 @ 9911.00 11 @ 9572.00 0 @ 9727.00 84 @ 10100.00 48 @ 9911.00 2669 @ 9913.00 1714 @ 9596.00 AVERAGE 40.0 9127.9 2.5 79.5 2253.7 FT/HR AMPS KLBS RPM PSI . DEPTH 10100' 23 YP 13 FL 3.5 Gels (.10 OIL 3 MBL pH PV SD 5/8/12 CL- 9.2 Ca+ 32000 280 CCI GAS SUMMARY (units) DITCH GAS CUTTING GAS HIGH LOW 368 @ 9609.0 10 @ 9835.00 o @ 10100.( 0 0 @ 10100.00 CHR MATOGRAPHY (ppm) METHANE (C-1) 66489 @ 9609.0 1785 @ 9835.00 ETHANE (C-2) 126 @ 9719.0C 5 @ 9804.00 PROPANE (C-3) 65 @ 9646.0C 0 @ 9839.00 BUTANE (C-4) 25 @ 9714.00 0 @ 10019.00 PENTANE (C-5) 0 @ 10100.0( 0 @ 10100.00 HYDROCARBON SHOWS 9730' TO 9757' INTERVAL LlTHOLOGY/REMAR S GAS DESCRIPTION 9730 TO 9757 SAND BEFORE 20 DURING 158 AFTER 30 VERY ASHY TO SILTY MATRIX LITHOLOGY COAL, CARBONACEOUS HALE, SILT PRESENT LITHOLOGY 10100' = 40% SILT, 40% CAY, 10% COAL, 10% CARBON SHALE DRILL TO 10100', CIRCULATE ND CONDITION THE MUD AND HOLE, PUMPED WALNUT FLAG TO DAILY ACTIVITY CALCULATE WASH OUTS = 11 5 BBLS OR 3.5% WASH OUT, PULL OUT OF THE HOLE FOR WIPER TRIP SUMMARY TO THE SHOE. AVERAGE 53.1 0.0 TRIP GAS 0 WIPER GAS 0 SURVEY 0 CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 0 9844.8 24.8 9.6 0.6 0.0 EPOCH PERSONNEL ON BOARD 4 DAILY COST $2325 · UNOCAL AFE #162842 DAILY WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 27,2004 DEPTH 10100.00 PRESENT OPERATION WIRE LINE LOGS TIME 11 :59pm YESTERDAY 10100.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10100 9280.6' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 6.125" HC HCM505Z 7003462 5X12 4500 10100 5550' 64.63 0/3/1 TO 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 10100' MW 9.6 VIS 55 PV 22 YP 13 FL 3.5 Gels 4/8/10 CL- 32000 FC 1/2 SOL 6.5 SD 0.10 OIL 3 MBL pH 9.1 Ca+ 280 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 370 (WG) @ 10100 10 @ 10100 25 TRIP GAS CUTTING GAS @ @ WIPER GAS 370 @ 10100' CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENTBACKGROUND~VG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY FINISHED WIPER TRIP TO SHOE AND TRIPPED BACK IN THE HOLE. hOLE WAS TIGHT AT 9360': PUMPED DAILY THROUGH AND HIT FILL AT 10078', WASHED TO BOTTOM, CIRCULATED OUT THREE GAS KICKS: 370 UNITS ACTIVITY 1ST, 330 UNITS 2ND, 270 UNITS 3RD ON THE THIRD GAS KICK, CONDITION THE HOLE AND RAISE THE MUD SUMMARY WEIGHT TO 9.6, PULL OUT OF THE HOLE FOR LOGS, HOLE WAS TIGHT AT 4542' AND 4550', LAY DOWN BHA AND RIGGED UP SCHLUMBERGER, START TO RUN WIRE LINE LOGS. · · EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 w/o SAMPLE CATCHERS REPORT BY LEES F. BROWNE JR. · UNOCAL AFE #162842 DAILY WELLSITE REPORT ~ EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 28, 2004 DEPTH 10100 PRESENT OPERATION TRIP TO E-LOG TIME 11 :59pm YESTERDAY 10100 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10100 9280.6 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN 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 10100' MW 9.8 VIS 52 PV 21 YP 12 FL 3.4 Gels 4/7/9 CL- 31500 FC 1/2 SOL 7.6 SO 0.10 OIL 3 MBL pH 9.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 530 @ 10100 15 @ 10100 45 TRIP GAS 530 @ 10100' 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 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY PULL OUT OF THE HOLE WITH WIRE LINE, RUN IN THE HOLE WITH SECOND RUN, CAN NOT GET TO ACTIVITY BOTTOM WITH TOOLS, PULL OUT OF THE HOLE AND CUT AND SLIP DRILL LINE AND RIG UP FOR CLEAN SUMMARY OUT RUN, TRIP IN THE HOLE AND HAS 15' OF FILL ON BOTTOM, CIRCULATE UP 530 UNITS OF TRIP GAS, WEIGHT MUD UP FROM 9.6 TO 9.8 AND BEGIN PULLING OUT OF THE HOLE. · · EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . UNOCAL AFE #162842 DAILY WELLSITE REPORT g EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 29,2004 DEPTH 10100.00 PRESENT OPERATION TRIP IN WITH LINER TIME 11 :59 PM YESTERDAY 10100.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10100' 9280.6' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN 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 10100' MW 9.8 VIS 54 PV 23 YP 14 FL 3.6 Gels 5/12/15 CL- 31500 FC 1/2 SOL 7.6 SD 0.10 OIL 3 MBL pH 10.0 Ca+ 220 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 49 @ 4538' 5 @ 4538' 20 TRIP GAS 49 @ SHOE CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENTBACKGROUNDMVG16 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY UNABLE TO GET LOGS TO BOTTOM, DECISION WAS MADE TO STOP LOGGING AND PULL OUT OF THE SUMMARY HOLE AND RIG DOWN SCHLUMBERGER, RIGGED UP AND RUNNING 3.5" LINER. CIRCULATED OUT 49 UNITS OF TRIP GAS AT THE SHOE (4538') . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . . UNOCAL AFE #162842 DAILY WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 30, 2004 DEPTH 10100.00 PRESENT OPERATION TESTING BOPE TIME 11 :59 PM YESTERDAY 10100.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 101 00' 9280' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN 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 10100' MW 9.8 VIS 52 PV 21 YP 12 FL 3.6 Gels 4/8/10 CL- 30000 FC 1/2 SOL 7.7 SD 0.10 OIL 3 MBL pH 10.0 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 186 @ 9300' 5 @ 15 TRIP GAS 186 @ 9300' 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 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY RUN 3.5" LINER TO 7000' AND CIRCULATE OUT 56 UNITS OF TRIP GAS, RUN IN THE HOLE WITH LINER TO SUMMARY 9300' AND CIRCULATE OUT 186 UNITS OF TRIP GAS, UNABLE TO GET LINER PAST 9326', PULL OUT OF THE HOLE AND LAY DOWN TUBING AND START TESTING BOPE. . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . . UNOCAL AFE #162842 DAIL Y WELLSITE REPORT [t EPOCH RED #2 REPORT FOR SHANE HAUCK DATE Aug 31, 2004 DEPTH 10100.00 PRESENT OPERATION TRIP OUT TO RUN LINER TIME 11 :59 PM YESTERDAY 10100.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4538 DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10100' 9280.6' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN 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 10100' MW 10.0 VIS 56 PV 21 YP 13 FL 3.5 Gels 4/8/10 CL- 30000 FC 1/2 SOL 8.8 SD 0.10 OIL 3 MBL pH 10.5 Ca+ 240 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 363 @ TRIP GAS @ TRIP GAS 363 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 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY FINISH TESTING BOPE, PICK UP BHAAND TRIP INTO THE HOLE, REAM HOLE AT 9290', TRIP TO BOTTOM SUMMARY WITH 19' OF FILL, CIRCULATED OUT 363 UNITS OF TRIP GAS, CIRCULATE BOTTOMS UP FIVE TIMES AND RAISED THE MUD WEIGHT FROM 9.8 TO 10.0, PULL OUT OF THE HOLE TO RUN LINER. . EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. . · UNOCAL AFE #162842 DAIL Y WELLSITE REPORT [:I EPOCH RED #2 REPORT FOR SHANE HAUCK DATE SEPT 1ST, 2004 DEPTH 10100.00 PRESENT OPERATION DISPLACE HOLE W/ CSG ON BOTTOM TIME 11 :59 PM YESTERDAY 10100.00 24 HOUR FOOTAGE 0 CASING INFORMATION 3.5" @ TO DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 10100 9280.6' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 10.0 VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 115 TG @ TO @ TRIP GAS 115 @ TO CUTTING GAS @ @ WIPER GAS 0 CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG 0 PROPANE (C-3) @ @ CURRENT 0 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAIL Y ACTIVITY RUN LINER TO TO AND CIRCULATE OUT 115 UNITS OF GAS IN 10.0 LB/GAL MUD, PUMP CEMENT SUMMARY AND DISPLACE THE HOLE. · EPOCH PERSONNEL ON BOARD 2 DAILY COST $1675 REPORT BY LEES F. BROWNE JR. ·