The URL can be used to link to this page

Home My WebLink About206-066 ~~ 4 ....` ' x . ,~ ~~ . ~'. -;+„~ 3~ MICROFILMED 6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc i ~ M~,,~- DATA SUBMITTAL COMPLIANCE REPORT 11 /18/2008 Permit to Drill 2060660 Well Name/No. NINILCHIK STATE 2 Operator MARATHON OIL CO API No. 50-133-20560-00-00 MD 11500 TVD 8311 Completion Date 2/13/2007 Completion Status 1-GAS Current Status 1-GAS UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes ,~, ~~.{ p; ~~~" DATA INFORMATION Types Electric or Other Logs Run: Quad Combo, GR, CBL (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments D C Asc 14018 Induction/Resistivity Open 8/11/2006 LAS Main ',~D C Las 14018 Induction/Resistivity Open 8/11/2006 TVD_Main LAS ''~ C Asc 14018 Induction/Resistivity Open 8/11/2006 LAS Repeat %ED C Exc 14018 Daily Operations 0 0 8/11/2006 Drilling Report ~D C Asc 14018 Mud Log 0 0 8/11/2006 Mudlog prelim in ASC Text ~ %~D C TIF 14018 Mud Log 0 0 8/11/2006 Mudlog prelim /ED C Asc 14018 Mud Log 0 0 8/11/2006 Mudlog Finals ,j~D C Pdf 14018 Mud Log 126 11500 Open 8/11/2006 Epoch Digital Formation ~ Log MD I j/~D C Pdf 14018 Mud Log 126 11500 Open 8/11/2006 Epoch Digital Formation Log TVD ~ Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments j Cuttings 1620 11500 6/21/20 06 1164 ADDITIONAL INFORMATION ~( Well Cored? Y /~1 Daily History Received? p/ N Chips Received? ~- ' Formation Tops ~N Analysis 1~Ffd~ Received? Comments: DATA SUBMITTAL COMPLIANCE REPORT 11 /18/2008 Permit to Drill 2060660 Well Name/No. NINILCHIK STATE 2 Operator MARATHON OIL CO API No. 50-133-20560-00-00 MD 11500 TVD 8311 Completion Date 2/13/2007 Completion Status 1-GAS Current Status 1-GAS UIC N Compliance Reviewed By: Date: • • ~`~ ~;:A~ Marathon ,~ ~~~ . MARATHON Q~1 Company s Marathon Oil Company Alaska Asset Team P.o. Box 19as Kenai, AK 99611 Telephone 907!283-1371 Fax 907/283-1350 November 27, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Sundry Report Field: Ninilchik Unit Well: Ninilchik State #2 Dear Mr. Maunder: ~~~~~ N~~ ~ ~ 1.0(l ~~S~a ~i~ ~~ 4~8S ~i+Slft~.+. ~i)~1'1Tt9a.s'•.C1~1 ~;~ch~~r~c,~ ~b~ ~b~ Attached for your records is the 10-404 Sundry Report for NS-2 well. This sundry covers work associated with the Tyonek Zone reperforations and perforation additions. Work was completed under sundry #307-286. Gas Production was initiated today, November 27, shortly after midnight. NS-2 is presently flowing 200mcf at 760 psi. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Please return any correspondences to me utilizing the address in the above letterhead. Sincerely, ~'~.~s~~ Kevin J. Skiba Production Technician Enclosures: 10-404 Sundry Report cc: Houston Well File Kenai Well File KJS KDW - - . ~~,0~ e STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ~d ~ °,, `;~ ~~~~' REPORT OF SUNQRY WELL OPERATIOI~j~ka Dil&' ~ ;~ ~ „_.. ,; ,. ;. i. Operations Abandon Repair Weil Plug Perforations Stimulate Other Performed: After Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re_enter Suspended Well ^ 2.OPerator Marathon Oil Company N 4. Well Class Befare Work: 5. Permit to Drill Number: ame: Development ~ Exploratory^ 206-066 3. Address: Stratigraphic ^ Service ^ 6. API Number. PO Box 1949, Kenai Alaska, 99611-1949 50-133-20560-00-00 7. KB Elevation (ft): 9. Well Name and Number: 148' MSL Ninilchik State #2 8. Property Designation: 10. Field/Pool(s): ADL - 389180 ~ Ninilchik Unit t Tyonek Pool 11. Present Well Condition Summary: Plugs (measured} 7,980' Cement s,o2a' cIBP Total Depth measured 11,500' ~ feet 10,635' Cement true vertical 8,311' ' feet 10,670' CIBP Junk (measured) 11,338' Comp. BP Effective Depth measured 7,$8p' ~ feet true vertical 4,82g'- feet Casing Length Size MD TVD Burst Collapse Structural 0 0 0 0 0 0 Conductor 105' 20" 126' 126' 1,500 psi 3,060 psi Surface 1,593' 9-518" 1,614' 1,329' 3,090 psi 5,750 psi Intermediate 5,914' 7" 5,935' 3,439' 5,410 psi 7,240 psi Production 0 0 0 0 0 0 Liner 5,803' 41/2" 11,500' $,312' 7,500 psi 8,430 psi Perforation depth: Measured depth: 7,066'•10,708' True Vertical depth: 4,090'-7,520' Tubing: (size, grade, and measured depth) 4-112" L-80 5,697' Packers and SSSV (type and measured depth) ZXP Liner Packer 5,697' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 3 32 Subsequent to operation: 0 200 0 3 760 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ^~ Service ^ Daily Report of Weil Operations X 16. Weil Status after work: Oil ^ Gas ^~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 307-286 Contact Kevin Skiba (907) 283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature ~ ~ °F.,~ Phone (907) 283-1311 Date November 27, 2007 Form 10-404 Revised 04/2006 o R ~ ~ f N A ~ ~V-~~ Submit Original Only 50-133-20560-0000 i_ zos-oss ~ Des: ADL 389180 R: DX.06.13333.CAP.CMP 222,383.828 2,245,845.926 60 08' 19.583" N 151 31' 22.634" W 22:00 hrs 05128/2006 22:00 hrs 06!1712006 KOP @ 250' MD1ND Bulid 5.0 deg1100' from 250-1500' MD Hold 60.9 deg from 1500.6275' MD Drop 2 deg/100' to 9320' MD Hold Z.0 deg from 9320' to TD at 11,500' MD Azimuth: 251.5 deg, Ninilchik State #2 Ninilchik Unit 983' FNL 8 1134' FWL Sec. 3471 N-R13W S.M. tg String - 4.5', 12.6#, L-80, Hydrii 533/563 r Chemical Injection Nipple @ :2433' MD (Top) 5.930' 00/3.858' ID 8430 psi bursU7500 psi collapse Linor Packer vrith 15' Tieback Extension @5697 MD (Top) Lock Liner Hanger @ 5725' MD (Top} er Joint Top @ 7502' MD (19.83' long) valve @ 8666.59' KB (4' long) er Joint Top @ 10,281' MD (19.87' long) ing Collar @ 11,401' MD (Top) Collar @ 11,433' MD (Top) Shoe @ 11,500' MD (Bottom) Expro Radial Bond Log Cement quality is mostly excellent from 11330' KB to the cement top of 8886' KB below the PAC valve (with ratty to good cement 9800-10055', 9430-9796', 9190-9305', and 8886-9010'). Above the PAC valve, the cement is mostly excellent from 8418' to the cement top of 6160' KB (with ratty to good cement 8206-8342' and 6244-6740'). Cast hon Bridge Plug (Top at 8020' KB) Dump BaOed Cement (7980'-ti020' KB) AOGCC Witnessed tag top of cement Cast Iron Bridge Plug (Top at 10670' KB) Dump Bailed Cemem (10635-10870 KB) Top of drilled composite BP at 11,338' KB. Formation Tops: Formation Depth (MDt Depth IND1 Beluga , Tyonek TD: 11,500' MD TD 8,311' ND L • MARATHON Conductor 20" K-55 133 ppf PE LQ Bottom MD 0' 126' TVD 0' 126' Surface Casina 9-518" 40 ppf L-80 BTC jgg Bottom MD 0' 1614' TVD 0' 1329' 12-114" hole with 405 sks (179 bbls)12 ppg cement with 79 bbls cement to surface. lMarmediate Casina T' 26 ppf L-80 BTC I~ o om MD 0' 5935' TVD 0' 3439' 8.1/2" hole with 285 sks (117.5 bbls) 12.5 ppg Lead + 167 sks (34.8 bbls)15.8 ppg Tall Bumped plug, 30 bbl spacer + 7 bbls cement to surface, 100%returns, floats held 7,086' 4,090'-4,104' 20 k Geo Dynamic 3.318", 4 SPF 1 011 512 0 0 7 7,443' 4,355'-4,368' 17 ft Owen 3-318", 6 SPF 211212007 7,541' 4,430'-4,447' 21 ft Geo Dynamic 3.318", 4 SPF 10115(2007 7,542' 4,430'- dA48' 22 ft Owen 3-3/8", 6 SPF 2111!2007 7;858' 4,676'- d,718' 46 ft Owen 3-318", 6 SPF 2/10/2007 7,858` 4,076'• 4,718' 46 ft Geo Dynamic 3.3/B", 4 SPF 1012/2007 and dump-bailed cement Liner (Btm 3307 Is Hyd 533, rest is Hyd 563) 4-112" 12.6 ppf L-BO Hydrtl 5331563 7sa B°ttom MD 5697 11500 TVD 3320 8312 r' Hale 20 bb110 ppg spacer followed by 2110 aks (100.6 bbls)13.0 ppg 8578' KB cement top from Temp Log Run 612712006. PAC valve would not open. Perfed 0383-8388' (Owen 3-318" 6 apf) to cement above 20 bb110 ppg apecer followed by 375 sks (135 bbls)13.0 ppg 25 bbls cement returns to surface. 4,828' ND Well Name 8 Number. Ninilchik State 2 Lease: Ninilchik Unit County or Parish: Kenai Penisula Borough Slate: Alaska Count USA Perforations (MD : Active 7,066' - 7,858' Isolated 8,058' -10,708' (ND : Active 4,090' - 4,718' Isolated 4,900' - 7,520' Angle/Perfs: An le KOP and Depth: 250' 5 da 1100 ft KOP ND): 250' BHP: BHT: Completion Fluid: Date Completed: 211212007 RKB: 21' KB (169' above MSL Prepared ey: Kevin Skiba Last Revision Dale: 11/27107 ~J Marathon Oil Company.: page 5 of s Operations Summary Report Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Spud Date: 5/23/2006 Event. Name: ORIGINAL COMPLETION Start: 7/22/2006 End; Contractor Name: GLACIER DRILLING Rig Release: Group; Rig'Name: GLACIER DRILLING Rig Number. 1 Date I From - 7o I Hours Code Code i Phase I Description of l7perations 9/2612007 08100 - 08:30 0.50 SAFETY MTG' CMPPRF 08:30 - 09:10 `0.67 KURD ' :SLIK CMPPRF 09:10 - 09:25 0.25 TEST;_ EQIP CMPPRF 09:25- 10:00 0.58 RUNPU SLIK CMPPRF 10:00 - 10:20 0,33 RURD_ SLIK CMPPRF 10:20-10:25 0.08 TEST EQIP CMPPRF 10:25 - 13:38 3.22 LOG_ CSG CMPPRF 13;38 - 14:00 0.37 RURD_ SLIK CMPPRF 10/3/2007 0$:00 - 08:30 -0.50 SAFETY MTG_ CMPPRF 08:30 - 10:00 1.50 RURD_ ELEC CMPPRF 10:00 - f 1:317 7.50 WORK ELEC CMPPRF 1:3:38.- 14.:00 0.37 PERF_ TBG_ CMPPRF .14:00 - 15:D0 1.00 WORK ELEC CMPPRF 95:00- 15:30 0.50 WORK EIEG CMPPRF 15:30 - 16:00 0.50 .PEKE TBG CMPPRF Arrive @ NS pad, sign in and obtain work permit. Discuss JSR and assign tasks. RU slickfine unit. PU 2-114" Gauge cutter and stab on weH. Pressure test lubricator to 2500 psi with 50/50 McOH RIH 2-114" GG and tag at 7998'; POH PU tandem PIT gauges and station well.: Pressure test quicktest sub fo 2500 psi.. Run P!T log from surface to 7950' at 120 FPM. Record 20 min bench at 7950' and POH at 120 fpm. RD slickiine unit and move to NS 3. Arrive @ NS pad, MIRU electric line init. Held P.lSM and discussed' wire iine operations with crew. Uptained work permit.. RU 40' lubricator for 30' guns, with single IES memory tool on bottom of gun. Went to communication black out on pad. PT lubricator with gun at 3000 pstg. Good testa Open well. RIH with gun:: WHP = 1050 psg, R1H with 3.375" Geo Dynamics guns Loaded. @ 4 SPF 60 deg. phased, W/ ?3 gm, Connex charges and PX firing head. Correlate depth to Precision Array induction log dated 6-18, 2006. Made 8' correction to get on depth to Expro GR/CGL {dated 7/2112007), Re erforate from 7820' - 1858' DIL (28~NO change in pressure. ~ wdh gun run #1. OOH.with gun, no change in, pressure after 30 minutes, WHP= 1083 pstg. Lay down gun, all shots fired. Checked for data inthe. IE5 memory tool. Good data. MU 20' gun. WHP = 1080 psg, PT lubricator connection with pressure sub. Good test. Open well, RIH with 3.375" Geo Dynamics guns loaded @ 4 SpF 60 deg. phased, W/ 23 gm, Connex charges and PX firing head.. Correlate gun depth fo reperforate from 7810' - 7830' DiL, f20') gun. Printede 11l27/2U07 17:1 Z:#3 AM • Marathon Oil Company ®perations Summary Report Page 6 of 6 Legal Well Name: NINILCHIK STATE2 Common Well Name: NINILCHIK STATE 2 Spud Date:. 5/23/2006 Event Name: ORIGINAL :COMPLETION Start: 7/22/2006 End: Contractor Name: GLACIER DRILLING ~ Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code Code Phase Description of Operations 90/3/2007 115;30 - 16:00 I 0.501 PERF_ ~ TBG_ 16:00 - 16:45 I 0.75 16:45 - 17:40 ~ 0.92 10/16/2007 108;00 - 08:30. 08:30 - 10:00 ~ 1.50 ~ RURD 10:00 -1 D'30 I 0.50 10:30 - 11`:30 I 1.00 11:30 - 14;00 CMPPRF Bled WHP down to 1050 psig before reparforating. No change in WHP, POOH with gun. CMPPRF OOH with guns, Close swab valve. Blow down lubricator, toy down guns. All shots fired. RD off of welt,. CMPPRF Clean up around well head. Expro left lease. ELEC MTG_ CMPPRF Arrive @ N5 pad, MIRU electric line unit. Held PJSM and discussed wire line operations with crew. Uptatned work permit. ELEC CMPPRF RU 40' lubricator for 21' guns. Went to communication black out on patl. PT lubricatcr withgun in lubricator at 3000 psig., Good test. Qpen well. RIH with gun. ELEC CMPPRF WHP = 1450 psig, In hole with 3.375" Geo Dynamics guns loaded @ 4 SPF 60 deg. phased, W! 23 gm, Connex charges and PX firing head. MTG_ CMPPRF Elfne depth at 7800', picked up on wire. Wire cable had jumped the sheave. at boom truck. Packed off wire secured well. Held tale gate safety meeting to discuss options. ELEC .CMPPRF Attempted to cable clamp ofF the wire above. the stuffing box to secure wire while changing the sheave. Man lift would not travel high enough. Locate one at GO pad, contact truck move over to NS patl, 14:00 - 15.:30 1..50 PERF_ TBG_ CMPPRF :Clamp off beaded line above float tubes, drop>down boom and. replace sheave with new one. PU wire, remove cable clamp and release pack off. PU hole with. gun. Correlate gun depth to reperforate from 7520' - 7541' DIL 21') gun. Bled WHP down. to 1340 psig before reporforating. No cttangein WHP, POOH with gun. 15:30 - 16:00 0.50 WORK. ELEC CMPPRF OOH with guns, Close swab valve. Blow down lubricator,. lay down gun. All shots fired. MU :3.375" Geo Dynamic gun. 16:00 - 17:35 1.58 WORK .ELEC CMPPRF PU go to-well with gun, PT Otis connection with pressure sub. Good test. open well. RIH to perforate from 7066' - 7086' D{L (20'). Correlate CBL to open hole log as before. Locate gun run #2 on depth. 17:35 - 17:55 0.33 PERF_ TBG_ CMPPRF Bled pressure down to 1230 psig before .perforating.: Perforate from. 7066' to 7086'. POOH with gun. 17:55 - 18:30 0.58 RURD_ ELEC CMPPRF OOH with gun, close swab valve. Blew down lubricator, check gun all` shots fired. RD wire line unit. 18:30 - 19:30 1.00 RURD_ ELEC CMPPRF Clean up around well head.. Expro left lease:. Well pressure built to 1270 psig in 15 hours Printed: 11(27/20D7 ~ 1;77:13 AM SARAH PAUN, GOVERNOR .. ~-7~ ~J~I ~ ~ 333 W. 7th AVENUE, SUITE 100 C~11T5F~KQAr)~~H C~D~IISSIOIQ ANCHORAGE, ALASKA 99501-3539 17 ii -7-7 ~ PHONE (907) 279-1433 FAX (907) 276-7542 Ken Walsh Marathon Oil Company PO Box 1949 Kenai, AK 99611-1949 Re: Ninilchik Unit, Tyonek Gas Pool, Ninilchik State #2 Sundry Number: 307-286 Dear Mr. Walsh: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this ~ day of September, 2007 Encl. ~_.~.;~ M Marathon MARATHON Oil Company ~~~~' SAP Q ~~ ZCl~1 August 31, 2007 Alaska Ail ~ Gay Cans. f=,f-~~r~i~<i~f Ans:ksa~~ap Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Application Field: Ninilchik Gas Field Well: Ninilchik State #2 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 Attached and submitted for your approval is the Form 10-403 to reperforate and add new Tyonek perforations in the Ninilchik State #2. This well was perforated and tested in February 2007 but was not commercially gas productive. A Form 10-407 was submitted for this work on 5/16/2007. Also attached is a copy of the well schematic and the proposed procedure summary. If you have any technical questions or need further information please call me at (907) 283-1311. Please send any return correspondence to Kevin Skiba at the letterhead address above. Non-technical questions should be directed to Kevin at (907) 283-1371. Sincerely, Ken D. Walsh Senior Production Engineer Enclosures: 10-403 Sundry cc: AOGCC Well Schematic Houston Well File Procedure Summary Kenai Well File Ken Walsh Kevin Skiba • STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION ~I~ SEP p ~ 2007 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.2so Alaska Qi! & Gas Cons. CQmmiccinn Form 10-403 Revised 06/2006 ~ I 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^v - Waiver,~~0fagg Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Com an Development ^ Exploratory ^ 206-066 3. Address: Stratigraphic ^ Service ~ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20560-00-00 ' 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ Ninilchik State #2 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL 389180 ~ 148' Ninilchik Unit/Tyonek Pool ' 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 11500' ~ 8311' - 7980' 4828' ' 8020'/10670' Casing Length Size MD TVD Burst Collapse Structural Conductor 126' 20" 126' 126' N/A N/A Surface 1614' 9-5/8" 1614' 1329' 5750 psi 3090 psi Intermediate 5935' 7" 5935' 3439' 7240 psi 5410 psi Production Liner 5803' 4-1 /2" 11500' 8311' 8430 psi 7500 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7426'-7858' gross 4355-4718' gross 4-1/2" L-80 5697' Packers and SSSV Type: Packers and SSSV MD (ft): Baker Model ZXP Liner Top Packer 5697' 13. Attachments: Description Summary of Proposal ^ 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ^ Exploratory ^ Development^ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: 9/10/2007 Oil ^ Gas Q Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Kevin Skiba 907-283-1371 Printed Name Ken D. Walsh Title Senior Production Engineer Signature ~ q li Phone Date ~J 907-283-1311 8/31/2007 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ,,, Plug Integrity ^ BOP Test ^ M echanical Integrity Tes t ^ Location Clearance ^ \\ t ~ Other: ~4.~~ CO~~ ~ 2~V~\ Q N~tC~T pQ(- ~~A~aS ~a~~ S BFL sFP ~ 0 2D~7 Subsequent Form Required: ~O~ APPROVED BY Approved by: C MMISS R THE COMMISSION Date: ~~~~~~ Submit in Duplicate •~ KOP (~ 250' MD/iVD Build 5.0 deg1100' from 250-1500' MD Hold 60.9 deg from 1500.6275' MD Drop 2 deg/100' to 9320' MD Hold 2.0 deg from 9320' to TD at 11,500' MD Azimuth: 251.5 deg. Ninilchik State #2 Ninilchik Unit 983' FNL & 1134' FWL Sec. 34-T1N-R13W S.M. ng SVing - 4.5", 12.6it, L-80, Buttress Mod ng String - 4.5', 12.6#, L-80, Hydril 533/563 .r Chemical Injection Nipple @ :2433' MD (Top) 5.930' OD13.858' ID 8430 psi bursU7500 psi collapse Liner Packer with 15' Tieback Extension @ 5696.7' MD (Top) Lock Liner Hanger @ 5725' MD (Top) er Joint Top @ 7502' MD (19.83' long) valve @ 8666.59' KB (4' long) er Joint Top @ 10,281' MD (19.87' long) ing Collar @ 11,401' MD (Top) Couar @ 11,433' MD (Top) Shce @ 11,500' MD (Bottom) vent quality is mostly excellent from 11330' KB to the cemem top of 8886' below the PAC valve (with ratty to good cement 9800-10055', 9430-9796', 0-9305', and 8886-9010'). Above the PAC valve, the cement is mosty allent from 8418' to the cement top of 6160' KB (with ratty to good cement 6-8342' and 6244.6740'). Cast Iron Bridge Plug (Top at 8020' KB) Dump Bailed Cement (7980'-8020' KB) AOGCC Witnessed tag top of cement Cast Iron Bridge Plug (Top at 10670' KB) Dump Bailed Cement (10635'-10670' KB) Top of drilled composite BP at 11,338' KB. Formation Tops: Formation Depth (MD) Depth (TVD/ Beluga Tyonek TD: 11,500' MD / 8311' TVD TD • M iluun~oN Conductor 20" K-55 133 ppf PE TOQ Bottom MD 0' 126' TVD 0' 126' Surface Casino 9-5/8" 40 ppf L-80 BTC T~ Bottom MD 0' 1614' TVD 0' 1329' 12-114" hole with 405 sks (179 bbls) 12 ppg cement with 79 bbls cement to surface. Intermediate Casing 7" 26 ppf L-80 BTC TOE Bottom MD 0' 5935' TVD 0' 3439' 8-112" hole with 265 sks (117.5 bbls) 12.5 ppg Lead + 167 sks (34.8 bbls) 15.8 ppg Tail Bumped plug, 30 bbl spacer + 7 bbls cement to surface, 100% returns, floats held Tvonek Perfs: MD TVD Net Ft Proposed Gross Interval 6700-7426' Active 7426-7443' 4355-4369' 17 ft Owen 3-3/S", 6 SPF 2112/2007 7520-7542' 4430-4448' 22 ft Owen 3-318", 6 SPF 2111/2007 7810-7858' 4676-4718' 48 ft Owen 3-318", 6 SPF 2110/2007 Inactive Isolated below CIBP and dump-bailed cement Liner (Btm 3307' is Hyd 533, rest is Hyd 563) 41/2" 12.6 ppf L-80 Hydril 533/563 T~ Bottom MD 5697 11500 TVD 3320 8312 7" hole 20 bbl 10 ppg spacer followed by 280 sks (100.6 bbls) 13.0 ppg 8578' KB cement top from Temp Log Run 6/27/2006. PAC valve would not open. Perfed 8383.8385' (Owen 3-318" 6 spf) to cement above 20 bbl 10 ppg spacer followed by 375 sks (135 bbls) 13.0 ppg 25 bbls cement returns to surface. • M MARATHON MARATHON OIL COMPANY ALASKA REGION Ninilchik Field Ninilchik State #2 Re-perforating and Add Perf Procedure WBS # DX.06.13333.CAP.CMP.02 (8-29-2007) PLAN SYNOPSIS: This well was perforated and tested in early 2007 but no commercial gas rate was obtained. It is proposed to reperforate the three uppermost Tyonek intervals using the new Geo Dynamics' perforating charges observing perforating draw down limits as outlined in the table below. Each individual interval will be flow tested overnight to ensure that any excessive produced water flow will be identified and can be shut off, if necessary, before proceeding to re-perforate and test the next uphole interval. In the event that the re-perforated intervals are not gas productive, thus no production at risk, it is planned to perforate select intervals of the Tyonek formation from 7426' to 6700' MD. PROPOSED PRIMARY TYONEK RE-PERFORATIONS Surface Wellhead Pressure SBHP 30% DD 30% DD 50% DD MD Net Ft TVD 0.469 psi/ft 0.96 N2 0.57 gas 0.57 gas 7810-7858', 48 ft 4676-4718' 2213 psi 1319 psi 1382 psi 992 psi 7520-7541', 21 ft 4430-4447' 2086 psi 1253 psi 1310 psi 940 psi 7426-7443', 17 ft 4355-4369' 2049 psi 1234 psi 1290 psi 925 psi PROPOSED SECONDARY TYONEK NEW PERFORATIONS 6700'-7426' - Select Intervals RUN STATIC P-T SURVEY. MIRU Expro Wireline with full lubricator (pump in sub and flow tubes), and pressure control equipment. Hold PJSM. MU real-time P-T tools. Take lubricator and tools to wellhead. Pressure test lubricator to 250/2500 psi with water. Bleed off pressure. Take surface measurement with well open and then RIH taking static pressure and temperature measurements. POOH logging up to the static fluid level. POOH taking 3-5 minute benches at the half-way point and at surface. LD P-T tool string. REPERFORATE TYONEK (7810'-7858' MD): Hold PJSM. Pressure test lubricator and pressure control equipment to 250/2500 psi with water. PU and RIH with CCL and 3.375" Geo Dynamics' guns loaded 4 SPF 60 degree phased with 23 gm ConneX charges and PX-1 firing head. API target performance is 0.42"entrance hole and 11.0"penetration. Max gun swell in air is 3.52" OD. Attach dual IES Memory gauges to bottom of gun using the required crossover. Correlate depth to Expro CBUGR/CCL and Array Induction openhole log. Perforate 7810'-7858' MD (openhole log depth). Flow test perforated intervals over night checking for indications of increased flow rate and water influx. • Perforate 7838'-7858' MD (20'). Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 deg phasing: • Perforate 7818'-7838" MD (20'). Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 deg phasing: r~ Page 2 of 3 • Perforate 7810'-7818" MD (8'). Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 deg phasing: • Flow test perforated intervals overnight, checking for increased gas rate and indications of water influx. 3. REPERFORATE TYONEK 7520-7541' MD. • Perforate interval 7520'-7541' MD (21'). Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 deg phasing: Note: Perforating carriers can be loaded for a max length of 21'. Therefore, it was decided to reperforate from 7520'-7541' rather than the original 7520'-7542' interval. The openhole log data supports emphasizing the top portion of this interval. • Flow test perforated interval overnight checking for indications of increased gas rate and water influx. 4. REPERFORATE TYONEK 7426-7443' MD: • Perforate interval 7426'-7443' MD (17'). Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 degree phasing. • Flow test interval overnight checking for increased gas rate and to ensure that any excessive produced water flow will be identified and can be shut off. RDMO Expro wireline. 5. ONLY IF THE ABOVE REPERFORATING DOES NOT RESULT IN A COMMERCIAL GAS RATE: PERFORATE SELECT TYONEK INTERVALS 6700-7426' MD: • Perforate select Tyonek intervals within 6700'-7426' MD. Perforate with 3-3/8" Geo Dynamics' guns loaded 4 SPF and 60 degree phasing. • Flow test interval overnight checking for increased gas rate and to ensure that any excessive produced water flow will be identified and can be shut off. RDMO Expro wireline. RDMO Expro wireline. 6. FLOW TEST WELL TO SALES. Initially, no more than a 50%drawdown with nitrogen in the wellbore or 60% drawdown with methane gas in wellbore is permitted for the lowest open interval. Obtain stabilized flow within the 60%drawdown limit. The unloading rate up 4-1/2" casing is 4.5 MMCFGPD @ 1,000 psig FCP. Establish deliverability and obtain gas samples to determine gas analysis flowing well as per direction of onsite production engineer. Contact Houston Reservoir Engineering with transient test questions -Clyde Scott 713-296-2336. Following clean up and constant gas rate, prepare for pressure transient work. 7. RECORD 4-POINT TEST: Kenai Operations to receive and execute 4-pt open flow potential test design from Houston Reservoir Engineering. Kenai Operations to document results and immediately forward data to Houston Reservoir Engineering. Reservoir Engineering to complete the Form 10-421 documentation and forward in a timely manner to Kevin Skiba. Kevin Skiba to review form for completeness and then send in documentation to the AOGCC with copies to Kenai and Houston well files. Ninilchik State #2 Tyonek Reperf and Add Perf Procedure KDW - 8/31/2007 11:02:14 AM Page 3 of 3 8. FLOW WELL TO SALES: Release rental equipment and return to vendors. Flow well to sales observing recommended drawdown rates. CONTACTS Ken Walsh: 907-283-1311 (w) Scott Szalkowski: 713-296-3390 (w) 907-394-3060 (c) 713- 301-9834 (c) Lyndon Ibele: 907-565-3042 (w) Clyde Scott: 713-296-2336 (w) 907-748-2819 (c) Ninilchik Operators: 907-260-7660 or 907-567-3248 (Susan Dionne Pad) KGF Operators: 907-283-1305 Ninilchik State #2 Tyonek Reperf and Add Perf Procedure KDW - 8/31/2007 11:02:14 AM Ninilchik State #2 (206-066) Subject: Ninilek~ik Sta~c ~`2 (206-066) From: Thomas I~Iaiinder <tom_maunder@admin.state.ak.us=~ Date: Tue, 22 May 2007 07:23:17 -0800 To: ftcn ~'~alsh ~~=KD~~'alshlci'RlarathonOil.com-> CC: Art SaltiT~arsh °~~-art saltirrarsh<<iadmin.state.ak.us== Ken, We have received a 407 detailing completion work done from July 22, 2006 thru February 13, 2007. I do not find any information regarding the activities conducted prior to July 22. Could you please send us the operations summaries beginning when the rig was moved to the well? Email is fine. Thanks in advance. Call or message with any questions. Tom Maunder, PE AOGCC Ark ~ ~ ~ ~-~.; s~~ .~ 1 of 1 5/22/2007 8:03 AM • • Marathon Oi! Company page ~ a# 10 C3perati~ns Summary ~e~flrt Legal b!/sli Name: NINILCHIK S1'Al`E 2 Common Well Name: NINILCHIK STA TE 2 Spud Date: 5/23/2006 Event Name: OF~iGINAL DRILLING Star: 5/24/2006 End: 6/2212006 Contractor Name: GLACIER DRIL. LdNG Rig Release; Group: Rig Nance: GLACIER DR1LL(NG Rig Number: ~ Date From - Tc~ E-~our~ ' Cade ~~~ f'hese Description of Operations ~ ~ 5,`24,2406 ; ~~u0 - 78_CO ~.QO RURG__ R1G_ iv1!RU Begin moving Glacer Rig 1 from the Ca,~nery Laep Unit pa;J The rlg has been shut cou~~n since 1,1ay 20th ~. ttSng for the spring -oao restrtct,cns to ae lifted Re~eia°~d orders ,o be,ia move. j r jPJSEr' tr°ov~ ~s~mp #~ Loado..t S~'1 S°~~~aco m~,d Vai'rer. Loaf nut } iv€a[ter-Rump o## fuel tank 2239 gal. i='JSfv1 Load cat fttg! ±ank_ Load cat i ;BOP convex. i Sipe dc,~.R~i : errick crane back ~,<=~,d veal?s,f'~oorplaC9. 7 &'OG`~ - GO:OC~ 6.C0 KURD .RIG F+L'R~J ,Load cut Va3lers (o~,ver ~derriek.Joad cut doghouse. DS Grey iron-DS SYairsartd piat#orrr~,Unpiug and remove pan,c Iine-Disconnect a.r,stear;,stearn return.~.a~ater. 00:00 - 0600 n b0 RiJRD _ _ RIG_ hAIRU Spli. pits (•ram ptu~~p room Rig do~a~n a(I hgn•s ~~A~ ruble ?ray. i,1G~ia R~y^ dotidr for ng, (D°% toad cart for can-li. ' S'25i20U6 06:Ofl - 38 GC .2 OG KURD RfG h1!RU PJSPli Co iirtue rig t!o~den all componen(s Load out rig 95°n move to NS=2 gad. i 8'GO - 06:00 ".?.pC RL'R;~_ .RIG_ f~1l~RU P.!Sf:.1 Se: ,i3iting beards and start b~-, giny in rig ~omgonentsRlgging ~~3p.nia 15°1o ragged t,p .Camp 100 r'~y5ed up- b?26r20C16 Oh~vn -12:f1t7 6A0 RURt7 RIG tt91~U PJH~A R:I~ Derrick house on bor3rd ai7d gray irpn ~r.~t ic~ader Install fool t2ilk'*nnt Uvtnd',va~;o Gh}oke h~u5e ?;f.RU f 1200 - 13 GQ t.Oti ~ R2jF~Cl~ 21G_ 1i~1r~U 7 ter evaer.~y sa`:e*y mueting 13:0 - 15:GG 2.00` RURD:.__. RfG _ (R+1t~:U PJS!tM1 '~+ith crane opec Set ~n FOR e;r~nex,ODS staff, s. ~ . and platform-Drillers doUhou~a and sraars p'atfortn.pavli; Iine, _ ' raise pcerhay- 15:u4 - ~t8'Gfl B.d0. RURD_ ftiG '~tCRU ~ WU w~terti ;e tr, rdaienrselLSei m 3 mud pump matting boards =and ~3 pur7p.Burminc received foul. 1o-OtJ - OO~:vO 6.00 RURD_ Rli~_ ~P.•'sir~,t.J ~Satcem~nt silo.eutting tank.Plil cent- van.t~lacn. shop.oarts housa~ I E~pesh shack,hansan tarak.b{eed day tanKS p-eppmg corner td rase. I UiI:00 - Oo:09 6.00 RLaRD R1G_ ~ t+it(RU PJSfat Mount crown hghLfi!'~ ~~~aier iank,fi,louri l(rhts on Cake f~ouse,dog !, ~ house,boiler room. Repalr sLr~~on Iine on ~? pump. r Rrli trip Yanksu'mg up need dere,ui: cli;nber,geronimo. Raise exhaust farrs.Rep[a;,e ,or:g tcrour gaE~ge. Raad~a mast to raisE. 5127'2L06 fl6:C0 - Oo:00 2.00 41JRD _ ~ RSG__ P~.QIRU PJSIv", cont P,U Glacier riy #1 on N5-2- '~, Raise mast: set stairs, windtivaiis, cat vdalk, run elect ?ices. Connect gz~y lines, geronimo, all r~aated connections to mast. i. ~ lCStail tGf(~U8 tlibf', Ply t6R drib'9. RU r:~ ~t~6r. RIg sFlS~$CtIflR. 5r2812Cflti G6~Q0 - 12:OG 6.00" RURD R!G_ hdllRU PJS(tiR. r~mpiete Rif Glacier rig ,~1 on NS-2. 12'.00 - 14:00 . 2.00 CU7 ~ CSG_ SURDRL PJSt+~, cut I dress 20" conductor for wellhead o-nstall. ]4:00 - '15:DrJ 1.00 NL!ND Y~tLHD SURDRL PJSM, irstadl Vetco SOL 21 '114 X 2000 ~~.~eHnead 15:G0 - 1530 0.50 TEST __ 4VLHD ,SURDRL Test t:~ell!^ead 300 psi 1 i0 min. ?`est success#ui. No re-tests. 15:30 - D1:00 9.50 ~iUt~D HOPE ' SURDRL r~JSP~1, nipple up diverter system 1 ail related components. 01 X00 - ~;i3:Ot7 2:40 ~ TEST__ 6flPE SI.fRDRL PJS?~',, test diverter system, perform tme i volume !press 1 test (accumulator unit}. Test successful. no re-tests. 1 b^JitnF~SS by'dir Lou Grimaldi aOGCC 0?:01? - On'C~ ~°ULD 3,00 DP~ SURDP,L AJS~6, lay out. strap, P114" DP, stand bK in mast_ ~ ~ Mote: Glacier rcg # i acceptea this dafe ?24© tins- 1 5!?9,•'2000 06:00 - ?8'3© 12-50 PtiLD DP SiJRDRL PJSRf, PU G" DP, stand bk m mast. 16 3G - 22.60 3 ~0 PULD BRA :SURDRL R!H 12 lla Bf;~ i c'rctnl assy ifl fag fill at 121 fc. { 22 Cv - 6!:~';1C 2.CQ DRILL, l ROT i ' SURDRL Spud tided NS-2. commence trill cheat ^, 2 ?!? hole dretnL ii rr .:~.~ ~.~~;.;.r ~st-.,,~.nt Marathon Oil Company Page 2 of ~U Operations Summary Report Legal Wel( Name' N(NILCNIK STATE 2 Common Well Names NINILCHIK STATE 2 Spud Date: 512312006 Event Name: ORIGINAL DRi L>_ING Start: 512412006 Ena: 6f2212006 Contractor Name: GLACIER flR(L LiNG Rig Release: Group: Rig Name; GLACIER DRIL LING Rig Number: 1 Date f=rom - To Hours Code Ced Phase Description of flp~erations I e 5~2Q`20Do ; ~ (3f} _ C%C:OC 2.00 DRl~L RO'i _ St1rRDi~L 12G- 228 ft. P,RT = 25 hts. AST = -?5 hrs. ~ ~ u0 00 -4^e:00 2:4Q CIRC_~ P~.-1UD_ SUE~t.,RC Girt, while respcnd za ti; e ~n change i;ouse. i ..(and Cry, safety ni~eilftg, inerw;F ~r e~r~pic~=cea as topos'sibi~ f mouse of i e. revi~~~v stews t,~.k~~n beEor. 'after inCidettt_ I` ~ Secure area, past firv'vatc;l. f ' 02:U0 - flb:fl0 . 4~4d= Df2li.,l__ ' iR~T_ - SURDRL Resume tlrrii ahesd 12 1'4 hole dretnl 228 - 504 ft. i A*~T = 1,25 hes, AST ~ 1 hr f 5i30f?OOo Qfi;00 - 11:40 5.40, t~RILt_ ~R~T_ flURpR~ Dnil ai~emd 1211q hale dretnl 50d- B01 ft ART = 1.~ hrs, AST = :i 7 hr; I i 7;00 - 12 0{7 1.OC TRIG SHA SiJRDR'~ ' PJS':?, r~OH BHA to sF~a for 5a•der sub. %~C~00 - 13:GJ 1.00 ~ C.-'~,~G EEQiP SURDR,_ RJSf~t,Ct3 saver sub to H7-3,3 Ehread_ ?1~~D6- 14.00 1.00tTft1P~ ,L7F' ~ SURDRL.. ~ PJSP~t, r4cw eneck, RIH. precautip~tu~~sti 60f! i4 $41ft. I r 12 It'll(, I`lo 4r, d:ag %bridge s gain i Ices. ;14.4(7 - tl3 00 13.44 [3RlLL RQ'T _ SURDRL 'R~ uric dn,, ahE~ad 12 z;4 t'oie dretnl 801 - 1621 fl: ART = 3.15 hrs. r1ST =' 9 ,~ ;r1of~:TD ~ Si8 csg pt :his date h30fi has ~ 1&2'S ft ';03:04 - ~~:.GO , 1.40 C1RC iulU37_ SURDRL ' GCdrkg flu4ds-far evipEr trip. , .~.~d~aliper 3 6 - ~°!o washout: No gate f lass, 44.00 - 05'Oi~ ; 1.00 Tr~,IP 14~"J!PR SURDRL ! PJSN1,flesw check, Ups ~~~on. tr p to SiJ!1 ft. ', loo drag l swab I gain I lass. II.:O}(7 - Jri J© - 1.40 TRIP- : W1PR ''SURDRL .Flow Check, RiH w;par trip. Depti~ i;~3 #t of Os40 hrs: 5;;;1;20130" °06:4'"? - O. OC ~ 1.00 R~Anq, ~ "Cki-l S'~JRDRE_ ~ Ream hit}e clean frarn 12~{Y' to 1521' `C7 GO - L'9:0v 200 C1RC ~ t+~UD SURDRL (Ciro. hills Clear al 162?' 0900 - 72~0'J 3.00 TR}P _ ~ OP SURDRL. ~ PJSPv#PCJGI-9 to rtm ~ 5i8 cs0 1' 00-12'33 0.50 TR1° SH,4 _ SURDRL 'PJSTVi PROF' wi?Fi 6HA #o rue, 9 5;3 es~ 1.::3Q - 13:J0 0.50 Ct -~~ _ RiG SURCSG ~ Clear artd clean floor to run 9 S`a csg. 32:04 - 15::ifl 2 54 KURD CSG SURCSCy ;PJSfulRiy up to rw~ 9 5,~° csg .5 30 -19 00 3.50 RUN- CSG_ SLiRCSG PJ~1, v~itn `l~Jeatherford Run 9 bid csg. ciieCt' flaafs l.~rs bridge i cir. dray ; gain r ':oss. Correct dispa~mealt Final depth. Shoe "614 ft, Float cnlfar 1 b3fl f . '19:40 - 22:30 3-50 CaRC ~ BAUD • St7RCSG Rig up cmt h,d- circ_ ;:CnCition mod. 22'.30 - 00:027 1.50 PU P Ci"'_ ~Si1RGSG PJS!al Pump 5 bbis. ;mater test lines try ot'CD psi,pur^p 40 bbls spacer with dye, and ' 78 bbts c r. ? 200 ppy ~ 1 Bump plug ti,th caiculat~d d<ol~ ne '.1E bls i ~ ~ Bold 500 p~~ over nary press {, 70 psi} i,I:.PO oit c~;ck s',oats, ~ ;floats holding- Got 79 axis. crr.r, to s,~~-tace, ~ Re-cap pipe ut~lil ttgF.t at 70 bbis past shoe. f i ~ p- pay a p : . ' ICP = 363 si at 5 born, FCP - ?70 12.5 b r1 ~ j 'Cm; fn Platte ~ C}0:05hr. 5i31,'2CQ6 00;00 - 06:00 a.00 NU1vD ~ BOPE 'SURCSG PJS~:1 R,iD Cmt. hd. purxtp retarder thru stack star Hipp€ing do~~dn diveROr line nvhile V~JOC. G71i20il6 ~0&00 - 72.00 ' 6.GJ P`UND BOPB SURCSG PJSivI: w,rTJ Diverter System t,~Vhiie WGC. '-12:00 - 32:30 I 0.50' NUND EQIP -SURCSG ~ P T SP~1; F~ymove Starter Head. 4VOC. Clean i Piis, 12:30 - 15:30 3.OG CUT- C5G _ l SURCSG ,Gut C~r~ductor & 9 5i8Csg. Dress Oui. Install 7 7" 5000 ~ ,X a 0:8" 5Q00 4'etco Gray VG X00 S~i_ Csg Heaa ~ ~ Carrin~~s T~ }~'dOC And Clean Pi's. ' 15:30 - 30:OU O.bO Tc57 VVLHD .BUr2CSG Tesi PvLtS 51:p lock Head Te 2o00psi r_ 1Q n;n. ~ ~ Test Passed. ' E~~00 - 04:30 12.50 CJJTJD i3(~PE S~JRCSG PJS;ti4 : Set BOP Stara. Cd;U Rope Spacer Spools- N3'~; S~nglB Gate To Stacac- fdlU 1Ci;! And G~i;vke Lines.:listall ,Flow k_ines R,%U Trip Tank Lines. R1>x:,nd Build 5(30 BBIs Marathon Oil Company Rage 3 of ~o C~perati~n~~ummary R€part Legal Well Name: N1NlLCHIK STATE 2 ~ Common 1NelI Name: NfNILCHIK STATE 2 Spud Date: 5r23i2Q06 Even# Name: ORIGINAL DRILLING Start: 612~I2006 End: 6!2212406 Con#rac#or Name: GLACIER DRIL LING Rig Release: Group: Rig Name: GLACIER DRIL LING Rig Number: ~ Date From - To Hours Code ~ Sub Phase Description of Operations Code ~gr1,?006 9F ^C - 04 0 1~ 53 ~.~UtiD ROPE SURCSC Flo=.nr Pra Mud. ©3.30 - 66 GG 1 5u TES" FO°E SIJRCSG PJStv1; r2~U To T~ t Fope., i.1.J Test Jt. Set Tess Ptcg:- 6r2~~006 ~~0:00 - 10:OG ».v0 TES i BCJ~E Sl;!€~CSG P.tSiv1 Tes? BCPAnd Ali Related Comv~nents. i 250 1 3GOD A!I Passea- Tast',-V~tnessed Sy RCGCC Rep. Lr~u Gr-n~ i:~i. ~10.u0- 30:30 0.50 RUf,tPt}~VVBSH !SURCSG Install wear ring 1 C:.it} - 91:3u 1.00 TcST_ I GSGm„ ~ St;RCSG Test ~~ Si8 Csg1o 15'JO G~si iEor 30 min. Int ?525 psi Pica! 950~Jps+ 11 zp - 12:3fl I 1.Ot1 SAFETY °v"TG ~ S~iRCSG ~Voe~:iy 5 stzty Meeting 12..:0- 14:00 1.50 RURD RIG_ S'~RCSG If~JSti! Insta~ E.ie~~ato-s,r,~cusehole,drp~an 14:G0- 15:SCj ' 1.50 TRIP BHA_ SURCSG ~Ev1ai€&ul~ S 9,"2 SriA R1H !5:'20 - 16:30 1.OG TRIP DP Si;RCSG j Fdun Et# hole -tth =1" d ~Ii pipe to 150C' 15-30 - 17.30 1.00 DR~LI_ CEO SURCSta l Wash ano rr;h ,rom 1500' ±o ? 529 drip' shae track t to 361' FrC A: 1529' Show At X01 ~ 17 50 18'Of7 0.50 DR;LL ROT !SURDSG ! Drill tror~~ 1621' to 1641' - 1E.00 19.Ofl _ i.00 CIRC ~ ~'v1UD_ ?SURCSG f Cire:hofe clean.buifd 2nd pump high vise a¢acsr, ~displacs v~;th 9.&ppg. F6~-Fro mud 19::rG - 1~9:3t) 4.5q TEST ;LUT $iJRG~G ~P~T#tarm 1Q T Tn 18.7& ER~1'Ja L~133 i T+ID 19.c,Q-60:00 ' 4.~0_DRELL_ ~pT_ jE#V7C~RL ipr~l(Survevfrom ~6k1'to?950'Upwt.~SK 1 jDr, ur-,SDK Rot. e~,t.=S~GK Tc,.-3-4K j ~ Nfl less No gain :ART-2.34nm..'+ST-.79hr5. .lat5-17.34ars. 00:00 - 06 ~~fl 6.00 . bRILL,_ ~ RQT_ ! ilV1 DRL P,~Stvt Drill Surve;: =rom? 990' to 2f;3~' Up wt.=oSK Dn. ~~~t 4-_h; R,o?. at =50 C ~ ~ (2.'t hrs.ART .25hrs Aa4 ~ _ ~ Start st}lids control °an ai C~aOG E/3,23G'u' Ou GG - 12:00 6.OG; DRILi_ RQT '1t'V9DRL ~P.lSftit;Dril1 survey F 258E' to 3 i28' _ _ j L7p r.~.=75K Dn wt.=48 Ret u~k_=55K Tg.=3-4iC .ART-fi.9hrs_AS'=1i2hrs.No Toss No gain 1G:v0 - 20:09 S,00 DnIE.L_ ROT_ IN9-DRS PJSt~§;Dtiil survey F•3'28' ip ~OGT ', Up vii.=80rC Dn.w3.=59K !Sot. +n t.=45K Ty`.=3.5-~.SK ~ A,F?T-.S.fShrs_AST=nhrs~ No loss i~lc gah 20 G0 - 21:00 1.00' CIRC MUD INIDRL ' PdSR~9;Puli one stand puma high vise. sweep spot h~be, _ _ i~~tonitor+r~e(i 10 h11ir. Primp Dry Job. 2^:OG - G0:00 3.G0 TRIP_ W'rPR INIDRL PC)CH F-4007' to 300G' Diole t=g~t_ OO:GO - C3:00 3.00 REP.M_ L~H_ IPl' DRL POOH = ,i 3000' - 1&15 Bari: Ream Circ :work k Tight Spots. Cfay Sand RBharnad OvYr Shakers G3 LJ0 - 03:30 0.50', SERVIC RIG_ IN1DRL ~ SertiC2 Rig. Flocks, Tqp Drive, Crown And Carrier i 03:30 - 05:00 1.50 C'JT VV!RE IN i DRL SiiF Ana Cut Drilling Line, 05:40 - 06:00 1.G0', TR1P_ b'VIPR IN1DRL Rih F- 1615- 3190' ~ Shor; Trip) 6'4r2006 06:00 - 06:30 0.50 TR1P_ ~`J4PR 1Pv1DRL Continue R1H {wiper Erie) F- 3990'-400T _ Vti'ash F-394T- 4G0?' Np Fill. No Ga:nllass 66:30 - 12:fl0 ' 5,50' DR1Ll. RCT_ IN1DRL PJSFJ~; Drill Survey F-4007- 44J5 Up V: t.35k. 'Dn. hVt. 55k Rt'/ut.60k. T q.4-5k Art.=2.1 Pst=.68 No Gain/ Loss Pump Hi Vis Sweeps To fvfa;ntain Hole Gleaning =92_fl0 - '&:00 6 CG i DR1LL t03'' IN1 DP,L Driii Survey F- 4d1b' - 5D04' ?8;00- ?8.30 0.5G GIRC ~MUD__, INIDRL Circ Pump Hi Vis Stiveep At 5G0~' 27C} Stks 55~J gpm 2200ps~. lncre~se Rctary To ' 20 rpm. ,Ciro clean Hol€~ For Short Trip ~~8 30- 29:30 3A0' TRIP W1Pft i(?t1DRiL 1 PJSM;PCOH ~ Short trip} 5005'-38°~' Ciro Fack Ream P- X686' - 3R8~?' Due Tc Clays ~d . • Marathon C}if Company Page 4 fl~ ~~ +D~erations Summary Rept~rt ~ Legal Welf Name_ N1NILOHIK STATE 2 Common Well Name: NINILCHIf< STA TE 2 Spud Date: 5/23/2006 Event Name: ORIGINAL DRILLING Start: 5/2~.l2006 End: 6!22!2006 Contractor Name. GLACIER DRILLING Rig Release: Groug~ Rig Name: GLACIER DRILLING Rig Number: 1 Date from - To Hours ~ Cade Phase Description of Operations ' Code ~f4i"~~s06 18-_i~-21:30 3.OQ TRIP ~NIPR IN3DRL Tict~tN~~ia ,. 21 ~^, - 2:3D 1.C0 TRIP___ ~JV1PP, IAI1DRL RIH F-..^,8 t-S~JO4' role Si~c;k *Jr: Tlgl,t Spo!s i No Gain Loss. avorrr~al moray: .22:30 - OO.rJQ 9.50 DRILL ~ - Rl3T (1DRL Drll Scn~ey P--5704'-5130'Up wt.=88r. Dn. ~:+~*~=47K ~ , Rot. +vt.=65K TQ.=S.SK N~~ Gain Rz~ foas i 1 } ~ ART-4.Sh~r.. AST .5 ~1{7:flU - fl~:CC1 E.4v DRILL n0? ~ 1t~1 DRL Drdl Sc~ey P-513G'- 55(11 up ~IJt 10{'k Dr Jv.Svl nt Vb't f,3n_ `u-~r Tg. Inrre3s~ ~ rRoar} ~ b0 ~e 95rpm ao GAj~~ Loss ( ~' ART-3 5hr. kST- o0 I6.'Si^OG6i 106.00 - 92 IIC ' 0.~0: D11(LL RGT _ ; (~tk1©Rt_ .Drill sunray F-550 53? 1'a.ST-1.0 .4RT 3 Up +~:.=1 i0 C Dn ,~:.-55K Rotate vet.-62K Na gain Np losses Tg.-5-?r; 192:(717 -1'v+ 30 1,5C DR1t.L RO?, ~ IN1 t3F,C. ~~ PJSPei: Drill survey F-5o11'-5942' r'~,RT 1.7 Up wt.=110K Dr- wt.=4°KRotate vv..=tJ!'. O ~;~ 2K i .D.31i2 ~ln1e ~eetiona25942' As Per P~.don. GEro apt. °1,3:30 - 15 CC 1-5v CIRC ; twtUD_ ,!1*!'3€7Rl Cire. Boteoms up pump htgb uis~. sweep I _ ( ai 5942'. lira F,i 27C7sprn ;~27gpm'. 235(3 I i ,~s~. } 15,17( - 19 0U 4.1313 TRtP _ .LNtPF: ~ IN^ DRL PJSM;POOH u.~ipaY Er.p;s- b942' - 7Q' I ~ Bae4; RearnClean UpTighlSnot~t5435' 19:(70 - 2C :~0 ~ 5:~ TRi~ __ '„'~~IPR I11V1DRL Check far;foev purY~C drj'iab. POLIH F-ri??7t7'-~7tlb" ` j Puiliny^ tight. Bach Rearrr Clfian up Tigl t s`pest~ ! 120th -21 C0 Q.50 ClRC ;~.4UD ~1N~©RL iClr€ulate;3rU At370C Exoess.vu F,rr~ount Cif _ _ ~O#'Cla~;t Sand Ret~~rn~r Over Shakers I29tCi©- C70 v0 ' 3.G0 TRIP_ 'Jl;PR IN1DRi: f POOH P-37CC'-175(7' inlort; Tight r,'olc Back r';earr. {Hole SI~Ck Frorn 3~i20' 7n i b15' i 70'00 - 0 i X30 1.57.. SERI/!C Ef~fP ~w7DRL Service: r^~ig. Blecis. Tap Drive, Carrier And Cro~r:n. a Inspect,~l Keaper Pirs On lop Dive Tor ;ue Tube. 0?:30 - b2 30 1.00 ~t1=PAfR R'.G_ !N1DF~L ~C.-O Reostat On #'1 fwd t'um,n. 02:70 - 75:30 3.00 TRIP_ ' 4rd~~PR IN?DRL RIH F- 1815'- 5435"4'lash And Clean l1p ,Tight Spot At 5+35'- 5490' Continue RIh.Tc 5942' rTag Br?m No Fill. i*Ja Gala Loss Correct Hole Displacemerf Gb:30 - G6:00 0.50 CIRO__, ~JD. ~1hi'1©RL CircPump Hi Vi;55sr~eep At 5342' Ciro Cond. i Mvd & Hole. 6~6%2000, G6:C0 - 08'30 2.50 CIRC_ ~L4UD_ 1~11DR1. ~Circ. Condition rood A; 5a42'. Pump, Nf ~Jis S1ve~ps. ' 50 °,~;, increase In Cf~i?inGS O~ser Shakers. I 08:34 - 09:Ou 0.50 PuP~1P_ TRET )N1DRL ~ PJSM; hlonrtar r~lell. Pump Dry „ qb 09:00 - 14:30 5.50 TRi?_ SH,A_ !Rl9DRL POOH:W DiP F- 5942' • 1615' E~iormai Drag, Hole ~! 'SI[ck. PAax Over Pulls 1Ck. fdo Gairr Loss. Continue POOH Tn 785` ~ S(rn & Dritt DrP To 2.25G") ~ 14:3G - 18~G0 1.5L~ PULD._ 3HA_ iN1DRL Pism~. Lay Do~~Nr: Bha 16:(0 - ?&30 2.50 ?vLD ._ LOG -- ~!~" Eu2 PJS! 9;Piek-up and P,1 U. Reeves puad ocnrbo tool ' Shuttle Assq 13.30 -'9:30 1.00' P',~LD BHA._ It*t 1EVL P.tU'v'fU NV'JDP and jars. 19:30 - 2300 3.50 TRIP_ JP_ I~f1EVL Trip in hole ~~rith d'<II pipe Shutt"e Assy ~:At Reduced Rate. TesF ; o:l At 46G' 180G'.3790'.b700'. 'vVaah i-- 588:7-6942' ho Fill. Hole Slick ~!o Ga;n toss. 23:00 - 00:30 ~ 150 C1RG IPa7UD '1~'EVL !Grc BtU At Sbb;s N1in. 5522' ?Jorma4 Returns !Over Shakers. • Marathon 4ii Company Pages ©t ~o Operations Summary Repar# Legal Well Name: N1NILCHIK STATE 2 Common Well Name: NWlLCH1K STATE 2 Spud Date: 5/23/2006 ~ Event Name: ORIGINAL DRILLING Starfi: 512/2006 End: 6/22/2006 Contractor Name: GLACIER DRILLING Rig Release: Grt~up: Rig Name: GLACIER DR3LLiNG Rig Number: 7 ~ Date Frc~n~ - T o Hours ~! Code Sub ~~ Phase ~ Description of Operations Code. _. _ _1 6I6a20G6 i;L 30 C`1~00 C.50 LOG OH iPJ1EVL ~-U to 5322' P~inp t~'fesse~~ges, Depot Quad Combo LoggingTools G1:00 - Go:G0 5.00 LOG_~ OH JNIEVL L.og b't~+ Precisicr Quad Cerr~bo Shc'Ue A~ay '` F- 5942' Tp 175u'' At 2 Pv~1in Per St3;td S t~f7,''20vfi 0&:OD - 01:3G 1.5U LOG,___ 0;-i~ fN1E'JL ROOkS Lcx~ging wi Dril! pipa.Ree~.~es Quad combo tool ~ '. logging. 07-30 - "r0 3D 2.00 f'iJi D BHA ___ _ 1:~~1EVL Hand~ie BhA- ~aycotivn 3 ~t,'2 Shi~tL'e p,~pe ar~d stand back I 5" HbVUP. 09:30 - 10:00 O.~J' PULD LOG IN1EU~ La~~ down Logging tcoas 1^v:00 - [1-G0 1.00 R'JP1PlJL ~VBSH ~ IN1CSG Puli '•,Near Bushing and c?ear; rig floor ;n rur. csg. 15:00 - 12:00 1.OQ PULD_ LOG_ (~ICSG ~ Jnload and read logging iovts.Pick-up iana9mg joint make=dummy run with 7" casing Hanger. 1c00 - 13:30 1.50 TEST_ 80P= INICSG Change pir~ ram. to 7°' and test to 2-0 ksi io:v .. :5000 psi high 1 °:30 - 14:30 1-00 PULD _ DP !id1CSG , Lay down 5 H'~'DP and handling equiE . i4..i0 - '8 3G 4 0(l R~JRG_ CSG_.. iN1CSG Change bads eleva?ors msfafl LaFour ,~o',edy~st torque t~,,be Rig up sbbbir, 3 board.Rig t,c cas~n; tangs and ele~dat~rs, 18:30 - 19:30 1.00'. RUN CSG _, 1;~11CSG PJSf~.~1;Pick up and make up shoe ,rack. Checfc floats. 10:30 - 21:30 ' 2.OG ~ RUf~ __ CSG_ INICSG Trip In hc~e with ?"-26,1 btc csq.tc 1600' 21:30 -'22:00 C 5i, R'~N _ CSG _ INICSG Ciro. casing volume 8` sp'm- 53fJ ~~s; - '8c gprn-?0 bbis. 22 ii0 - 03:30 5.50 R'JN_ CSG_ hV1CSG Trip in Hole ;nrith cs; froEr, °6+?0' T- 59?4p.AiU and .Land hanc~er_ Total Of 144 its Ran. Shoe @ 5934' ?C At 58=48'. 'Vo G:,in Loss. 03:30 - C~4:30 1.00 ~ CtRC_._ MUD_ INICSG Grc At 5934' ANY 64spm 125gpm 6'a3psi. hdorrrra! Re;urrts To S!takors_ 04.30 - 05:Q~1 0.50 RURG CT'.?T_ iN1CSG PJSA~1: RIU BJ 7" Cmt Head r1;~d Lines 05:GO - G6:Q0 1.00 PUi~s9F _ Ch1T IN1 CSG f PJSM: Pump 5 bbis i~2C. Test Lsnss To 3000psi. Pum30bbls of P~~CS4D 10 ppg Spacer. Followed By 117,SbG1 12.5 Lead Cmt (265 Sx117.5bb1 Class G -~ 20',~ iPA-1+ 2'iS CaGI + 2~/~ 5R,9S+ G3 FL-52 * .021 CD-32 + .UI'~- ASA-301+0.0b"°~ StF+ 1 ghs FP6L. tiA;eight 12 Sppq.loTsz 'an Cmt. 34 Sobs 15 8ppg Class G +0.8 FL-f3+G.5°: EG-1+.3'~f. CD-a2~ .IAS/~+ 1gps FPC,L Y:a}d Is1.163 cuft~sx 1G0 ~ Reh,rrs 1 6FHI2006 30 ^v0 - 07.00 1 00' PUMP___ G1v1T_ 1~1CSG Cont Cmt.Displace s~~ith 5bbl H2c+ 119bbi PAud At 5bpm +S;ovr'o 2 bpm on Last 1GbbEs Pumping at 925psi Sump Plug with 1550 psi i-',~Id 3min. Rr;e2sod, Ft~,ats Fleld. 30 bbl spacer and 7bbl cement retume+d to sr~rface 100 °~ Returns T hroughuut Job. Cip at 07:OShr. ! 6-7-06. Bump Plug. Correct Displacement. OZGO - 08:00 1.00 RURO CAr1T IN1CSG UD Landing Joint, r2tD BJ Cemenfi head & Lines. a:+OC Clear; Pits i ~~ 08:00 - 09:00 1.00 ; CdUNO YVLHD IN'1 CSG ' install &" Pack Off a Test To 50GGpsi =- 10 min. I ~ V+ipC Clean Pits G5:00 - 1't_00 ? DO RUE2D CSG iN1CSG R,'D Csr,. Toots, Cl0 pads >and Install Elevators VVOC. Clean Pits i '1:00 - 13:30 ' 25J NUNC BOPc iN1CSG Flush Stack, C!O Pipe reams. Shell Test To i 25Qi'Q00psi. lnstaA Vvr:ar Ring. sPdOC. Clears P 13:30 - 15:00 1.50 R~JRD OTHR `1h1CSG P.dlust Targae Tube, RlD Stabbing Board, Clean Pits 1b_00 - 15:30 0.5U'~ PULD RP__ 1N1CSG PJSM; PiU Drift Strip D1P And stand Back. Crean Pits 15:30 - 23:G0 7.50, MIX iN1UR_ 'INICSG .Build Mud Voiune Mix F;o,~, P-r, ~4uc, Cf~ange L~n~rs in #1.2.3 Mud Pumps Tc d" 23:00 - G6:0{1 7.0O REPAIR I'iP 1N1GSG a Replace Drum Ciut: h ,Bearing Anc Drive Sprocket I ~ Cn Drax ~.vorks ~ ~ - i ~llara~harl Oi( ~ampany t~p~rati~ns S~r~mary R~ep~rt Paged ~f ~Q legal b'~ell Name: NiNIL~HIK STI-ATE 2 I~Commor ti'~efi Name: NINIL~HIK STA GE 2 Spud Date; ~a23,r2008 Event Name: t~RIGINRL DRI~ LiNG Start: 5r`241Z~}0& End: SiZ2~'2d~36 ~ Confractor Name: GLACIER DRIL± 1NG Rig Release: Groin: Rig ~ia~ne: GLACIER DRIL UDG Rig Dumber; 1 ~ Sub date Erpm - Tc, F~at;r~, Cade Phase Descril7t:or~ of C~gerations +.,©de __ ~ ?._ . ~ .. . _ . _ . ,.~ R~P,','R ~i} ~ ~'t~.~.C r~~,. ._e~ncna;r C)c. ~,r,:!C ~ ~' ~ ~,. `~? .:~ ,n~_.i ~~ .,~ _..~_ ~i) OJT CMG !`4'i'~jir ~ i.. {1Y'_, E.c,i ~'~ '. ~~, .., L3t,..N.f F .., 'I ...~. ~~}Gv~:id [ . } -r~~;i~) i.vu ~~„_ _ t~.`'.. i.'v~i;.SG ~ _., . ,:rn'. r~ :, 2:,c, ~ ,. .`?..:-i' _„~. , .,, _:..F~u~~ ~ : r:ri .,, to .,~ ._ ~ ~ ,~ 5i. _ ...~_. I `.. t~.,.t-, ~ r. 7 .,_.,, a,~ .,~,~~s nu ;osve ~; ,, ~~ .. ~_„ _t , 2-. ~ Ci ~~' Pa~k.Il) #i'+I" z". JG C, _, `J. ;? . ~..,-~~ r n. ~, . Cat C-~ °_,~. ~a~;ei ~. ~a,N,:'' ~y _. ,.. _. ,.. _..: ~, __.: ?. ~,.8. f O~ ,,. _~._ ~ ~ rU ~ is{_ PILL ~'(~~~`~''.~ -Fk~t7E3ttC3R'; E.... D,.::'tU ~'y .iOb ~ ..:?.,,: _,-'%°~i~ _ t3~' Pr'21I~~.L Pjstn P~ !: ~9-.z _ ~ ~ ~ '~r~_; tJc~'~3t t1f}k { _ i ,~ ~ _ ,.. . v's~-7er ._, .. ,.rv~l ".(}i3 -:~;P ~~7"'._ P tu~L ?OOi-~ ~,.r5? ~.~; .,..: D- ~. J@~re8~ fj?t~'dt.85k f~ 2~tJ~ ,. _ ~,.~, ~Q 2.t3~' TR',p~ BH~t PR`.DR~ Can;. PC3©F 'J+ID~ ~,~,~ To ~ .~:_ Pv~ ~. ~~_;~ :.~,,. ~...~~ 2.,~ -Up _ ~~H~, r'~;'DRL RUC3NV!I,6HR. ~9:~ssSit" Kt~D-.., ,,.. D,~~r ,;~ a i ~iH. ~'~Is~ Te~CA,1,..:.0. ~~ ... ~.:,~T ~n S a~ Oi ~~ ~~~ .,, - ~~,.34 4,40 irk=P_ ,ice-_. PR;~7~L ~iH os ~" (7'r' To.,~Y~' ~' Gu? u* 5r.,,~ f ~~~ ~~,~ .~~~~, ~~ss Cct F~~~t ~~s~;~ ..:.? ~~r: 14 vJ 3 ~~ vR ~~; tcCii _ i'^, ~~~_ ~t ~ r' r `~9t ' f ~~ :h ,~R ~ 1i~ . ,c~...~ ~u:OG ~.Qt7 ~R«~_ ROT_ Pn;~r'~L :J,. ~,_.-~~., o~:c~ ~..,a.:'.~° ~ 'rz h s 4~ 2',.s } i ' ~ p ... =~~.rC Jn ,.. -40M: P.o ~., ..._ ~~` h TQ {~-7i{ ~Plfl •a:n Nc'~s5~s .~.. u.7 t,.. ,t~~:`., ,- n t ~:.~ Jr~iL~~__ ,- nJ, Pty, oL. ` `-. ~ _ ~ _ , . P 1 .''-:fir St.<~ ~t ,~ ;P ::.r 5 „} ~_d~~' ~~~t~ ,,., _ , _ ~ _ €~1Dft~L J , .;~ .~ .ey ., v..a~` ref: .....,.. _ ~sL .'., 5'~r r°+.C?f. ?..>'t1r. ,a iai~ ~ y~_.. `~1^_"r~l Or2c~ t~ .t~=:St ~:ir~~ ?" : _i - , c:3~ " 50 DRiL't ROT RR1D~L ~„ ~ Si:d~ S~n~~~ r=- c;~3 ~Ei' t ,,. ~~v ~~, V~di ; f° k Dr: X54; Rt. 7;~ i y :~ ; _+~ ,' ~ .511 h~.- h.. riij3- :~. ~h!. C~fu Oa;n~„s_ ,~.~r ray ~~d ~ ~~._; t, ~C.: ~~ ~ i .C}{~ ~II~.'u '.~Lf~ _ ~G~•.~~}~L L; t('C H!'+/... 5~:,H7 ,~,'7Qvi}~ ..cf~!?l ~ ~. y~ 1G`tt~GS~. ~ iu:3U - 77-3Q ~ 'i.C}0 TRiP Gii"iPR t~~;~RL wi w" v~}~;i -PO`JN r- 7Ci;;~ ~ :;3'G ~ .,3!i " .. ~~to rna, ~rav~ ^~a C.e, F~S!S r!t.a. ~„ter .~1~s Gz;. _~a:, _.. -!LS. ~~} ~ ~ ~~ ~: ~4, '~IV '.P~~~~~ Or ~RI C. ~3;Gt,~:.S ~,f?(3~ ~ i"'a>:"_ ~.~ `1~V `-L+~ ~ ~. ~ ~ rr ^~~ ;C~ 9$_Cx C-5:, "R`;? W1P~2 P3~9I3R~ =h1~t:,tar~,. a T,!p,. ,.~`~. -.c ,, r:~;o(~' • Marathon Oil Company flp~rations SummaryRept~ri` Legal Welt Name: NlNILCHIK STATE 2 Pagel of10 Common Well !Name: NINILCHIK STATE 2 Sputa Data: 523/2006 Event Name: 4RiGINAL DRIL LING Start: 512~1i2006 End: 6!22/2006 Contractor Name: GLACIER DRIL LING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: ~ Date ~ From - To ' Flours ', Code ~ Phase Description of Operations Code F~r'1112006 ' 13:G0 - 13.30 0.50 TRIP iNIPR PR1DRL VVas# ,past o3' to bottom ~!o Gains trio Lossas Pdo Fit on 6•sttbm 13.?G iSO:Of? 5 5C; DRI:_L_ 'ROT PR1 DRL Drll' S!id~ Survey F-7GOU'-~96Q' Up vJi.=?f;OK Dc ~:r?.=55K notaCng w, =i 5:~ -fG.=6-7K N~ gains PJo lossesAR-3hrs. Ast-3.5nrs_ 00:00 - G6~OG 6 DO DRI;_L _ ROT_ PR1 DRL Drfii Slide Survey F-7960'- 7340' Up 4'~h. ?OCk Dn. Wt 556; Rt. L11t. ?6x Tq :;-6 ;{ P~io Gain Lass. Slicing Pr t-20 fph Rt. PR b5-135 `pr. Spill Dri!!r Bop Drib, 6,~'12s2005 Of, U0 - 92:G0 6.00 DRILL ROT. PR1DRL Drih, Side, S~rrve/ F- 7340- 7535' Up `vYt. .tJOk Dn. VVt. SSk Rt. ~.Ni 70c TG 6-€~k AR- 2.3hr. Ast 1.3hr. ~~1o Ga+n Loss Rnp Rot_ 93fiph RUp c. de 14fp* - t'•13:i G3S 1 J5 Url:3. 12~OG - 13.GG 6.00, OR3'iL_ ROT_ PR1DP.L PJSh~1;Drill, Slide, Survey F- 7535' - -1f32 - Up wt =145K Dry. wt.=60K Rot v~~t =75K T . =c-7~C r1RT-1 7 AST- ~= 3 Po1ax. vas=13G Ur.~ts 13.00 _ {}O:OC~ n.Ot; DRILL ;t~'OT~ PRIDRL Dr!{~. Ssdc Su~~ey F-7?2rJ'-7855' Up INNt.=iGSK Drt V'vrt -iiOK Rc' ~g1:.=75K Tq.c~-7K ART-1.8 r05T-42 41rax Gas=141 Jnits '~ i ~ ~ Start Certerfuc~e van Bey:nir2g h:iJ~! 9.0 I En~sng ~~91v 9.3 OO.pO - 0:(IC - f~:Qfil DRl L~_ ' ROT_ PR 1 DRL Drill, Sire Survey F 856. 80 ,5' } Uo'~1t. 110k Dn. 4Jt. ov;< Rt. Nt. 82k Tq 6-Hk I( Art='.9 As? = 2.6 Rlo Gain Loss ~o'93i2006 vb 00 1L_Qp 6.00 DRILL_ ROT_ PRIDRL Dnl. Side Sun.~ey F- 3075' 3269' ~ ~ Up'v`V: _ ? 73k fln.4N' = 63k Rt 1,Nt. -05 Tq. =6-7.5 Ast =2.5 Art= 1.6 No Lair Loss I 12:OG - 13 00 6.00', PJr'~1LL _ ROT_ PR'I DRL PuS*4;D;i'i 5tide Survey F-8269' - X58' Up 1C,.-12C i7r ~Nt.=65k Rt i7Vt =35n Tq 6-,'k Ast= 2.3 Art = 2.4 No Gain !ass 13:00 - 00.00 6.00 DRILL P,OT_ PR1 DRL Dri1~ S;id~: Sun.~ey F-345~3'-8651'. Up'r"dt.=12~tC D;i. VVt.=oSK Rt. V`dt.=4JK ! Tp.=7-8KArt.=1.9 Rst_=21 Nn Gair, No Loss ~ r~Aax Gas 150 Units. S?art Cen.tertuga Va; ~ %itd V~~I 9.B End tvlue b°JI. 9.4 00:00 - 06:GG 6.40 ~ DRILL _ Rf>T_ PR1 DRL Drill Slide Sun~ey F- 8651' - 883b' Up. 1Alt.= 136k Dn. Vv't. fi5K Ri sNt. 90~: T,. 7.5-8..5k ~ '~ Ast-~.6 Art=1.8 6;1412006 66 U0 - 11-06 5 fl0 ~ DRILL_ ROT_ PR ;DRL Drill Slide Suntey F-8835' - 9fl'!d' . t-~p Wt.137k Dn'JVt.S5k Rt'~Vt 90k ~ ', Tq 7-3.5k A;t2.5hrAstl.1hr.,'~o Gain Loss ~ '~ 11'OD - 12.08 1 00 ~ GIRC_ ti1UD_ Pr`~.9 DRL Circ Pump Hi ~fis Sv/eep A# Q014' Cir Ai 300 s gpm 240stks'_-250psL S~:-eep Returners ,rJl Nvy Coals. Sand &SOt. Su~re~p Returnee r^s Calculated. 11100 Stks. Spill Dri(I (45 Sec; 12'30 - 13:30 < 9.50 TRIP V"~'IPft PRIDRL t;>4onitor':Vell Short Trip ~-907'-9300'. Norrnef Drag fdo O~:~erpulls, Wo T ic~ht Spots, RIH To 901;' N~ Gain Loss 13:30 - 13:00 ' -0.b0 DRILL_ R07_ ', PR1DRL 'Drill Slide F- 90314'-9t?90'Up wt=145K Dr, tit.=65K j ~Ri.iwt.=95K tq.=8 9KNO Gains No Losses.~RT=,?0 AST=2.5 Start Centifuge Van(Star. h4~1~J `~.5 Fnd 9.4j i 1 ~ 13 (`0 - Ot0;00 L 6.Op DRILL_ ROT ~?R1DRL DriEi Route Side F-9G90'-9224' I • Marathon 0it Company Page 8 of 9th Opera#ior~s Summery F~epo;r~ Legal Well Name: NINILCHIK STATE 2 Common Weil Name: NiNILCHIK STATE 2 Spud Da#e: 5l~3t2006 Event Name: ORDINAL DRILLING S#art: Sf~4J2006 End: G1~2l2006 Con#ra~or Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Numf~er: 1 Date -From - To Hours -Code Cad Phase Description of Opera#ions e 15,14120Qo 18:G0 - CO ~Gt? G GO DRILL RdT_ PR i DRL Up ~ti:.='t~F~C Dn. w[.=65K R. ,~t -9: K ( ,ST=24 ART-2. i Ma Ga'F~ No Cusses ~ 00:00 - C~6~00 6.00: DciILL -RtaT PR; DRL urll! Rotate Slide ~ ,~~~ ~'-934 Up a~,R =1a0K Dn. wt~67K Rt. 1vt.=101 K TG.B-9K "+ST=3 ART-1? Nc Gains No losses ~6I i5;20G6 Oo:Ot - 12:U0 6AO i DrRtLL =t~G'r ' PR ;DRL Drill Rotate Slide F-9345`-9581' Up wt 150K Dn w;.=72K Rt.tivt.= OOK ART=2.0 A5T=1.3 Tq.=8-9K Purop 53 bb;. sweep at 9519' j Result 100';~o increase i,i cuttings ors s~~;eep. ( 1cG0 - 18:OU 6 OG DRILL _ ;ROT, PR1DRl. PJS'~~~;Dr(I Rotate Slide ~-958"-989fi' Uo v>~t.=155K ~ j Dn_ i~~t: 75K Rt. ~~~t.=1G7K Tq.=9-10K r rump 'nd 5a~aep (^~ ~ inc;rea~e recur s) ~ Rpturn~ no n~al Guar by ~ quality, no gain ~' loss. 'u1a>: b;~ckgraund gas 150 units. 18:63 - 19:3Q 1.50 CiRO_ P;tUD PRIDRL Circ. Bottoms up,Chec€c far f1o~~:,Pump dry 3cb. For tip out of hole. ,19'30 - 00:03 4.53 Tr21P `pP - - PRIDRL ?rip out of hole for bi± sh2nge acid BODE Tes? ~ {Up Vd`..=1?5K Orilvt. 65aC do u~~usual dray ipuiling aut cf hale. To 49.30' No su<<at ~ gain 1 Loss. l ~C~rrec? h>>le fill. ~ ~ l)U:OG - D3:33 3.00 TRIP ~ DP PR1i'~RL ~ P,~SII~i:Trip out cf holes. Lay d~vdn BaA. ~ ~tnspect bit (Chipped teeth. in gauge, normal vlear) ~ 03:00 - 03 .;0 0.50' RUN?U'_ ~A1BSH PR1 DRL ~~ Clean ric, floor snd pull r~lear bushing 0 x:33 - v4 3D G.50 TEST BOPS - PR1 DRL f Rig up io Test BOPE ' ~ 04:Q0 - 06:00 ' 2.U3 TcST 30PE ' PP;1 DRL Teti ROPE 25G psi Iots~ 5 ~i'~In. 3ia00 psi hicuti 5 min 6/16I20C8 06:GG - U8~00 ' 2.G0 TEST, E30PE ~ PR1 DRL PJSPai, cont. test BODE ! a1; comaonen?s 250 / 30~ psi. i Test successful, no re-tests. Vditness waived M; Jim Regg AOGOC 08:00 - f19.3C ' 1.50 PULD_ BHA, ' PR1 DRL '~ h~tU BNA #6 (4 3l4 X 7" dretr.l assyj, flow cher~k, RIH sarna. 09:30 -'±2:4J 2.50 TRIP DP ' PR9DRL , Flotiv chES:c, follow EHA avith 4" DP .a 4930 f;. 12:OG - 13:00 ' 1.00. SAFETY' PLrsTG_ i PR1 DRL Safety meeting. a(I personnel, ~.~eakly. i 13:OC - 13.33 0.50' TRIP _ DP PR1 DRL rlo~:v check. RIN A" DP to 5934 H 13:30 - 15'OG 1.50 SLPCUT' DLI€v PR1 DP,L PJSM, slip !cut drag ;ine. 1500 - 17~3t) ' 2.50 TRIP DP - ' PR 1 DRL Flow check, resume RIB 4" DP tc 9895 fi. Precauticn wash 60ft to btm. 5ft fill. 7 ; :30 - Q6:00 1`1.50 DRILL ROT PR9DRL .Flow check, drill ahead ~ 3;4 X 7" hole. dretn( 98?5 - 102'r d ft ;AST = 0 hrs, AR7 = 9.5 hrs Trip Gas =.=14 units, no ,ain i loss !abnormal tor.,uel drag (connecfor,s) >A'OB 8660. RP~1 E0, SPP 215~a. SRhR '225, GPM 2S0 ~ Up 165, Dn 78, Rot 115 61;712038 '.06:00 - 06:3G ' 24 00; DRILL ROT . PR1 DRL Cont. drill ahead / ?;'4 X 7" hoiA drrtnL 1027a _ 11115 fr No abnormal Torque f drag, r;o gain i loss. AST = 4 hrs, ART = 2t?.7 hrs Up 185, Can 85. Plot 127, N10B 8. RFM 630, SRlv1280, SPP 2125 ', Baekgrour,d Q, Conn gas 0, Cuttings normal quantity i quality. j No acct do 5me. 6,'18i200n 06:00 - z2.OD 16.00'. DRILL ~ ROT PR1 DRL ~ Drlf ahead 4 31A X 7" bola dret~~l, .1 t':5 - 116G0 ft. "~ TD we11 at 1 1530 ff as per PAOC Gea Dept. this date 22C~0 hrs. No abncrmai #orGue J drag, no gain f loss, AST = 0 hrs, ART = ?4.5 firs Up 215, Dn 9t, Ftot 130. 1NOB 8~ RPivi 60, SPP 22QQ, SPM 280 Barkgrauncf G, rc~nn gas G unit: ~o acc I incident / do time .21:44 - 0030 2.50 Ci RO P,1UD_ ' PR7T~RL , G(C fluids, shaker cieac~, cutdngs,nor-,ial q~Jantity i quality. • Marafhon Qil Company Page ~ o~ ~o Operations Summary Report Legal We11 Name: NINILCHIK STATE 2 Common 1Nell Name: NINILCHIK STATE 2 Event Name; ORIGINAL DRILLING Spud Date: ~123l2OO6 Start: Contractor Name: GLACIER DRILLING 5/2412t?O6 End: 6122I~OO6 .Rig Name: GLACIER DRILLING Rig Release: Grow p: Rig Number: 1 Date Erom - To _ _ Hours ~ Code ~ Code ~' Phase Description of ©perations - ._ . _ G 1ES12D-^b 22 ~0 r'fl?t~ r0 'G G= 00 _. __ . 2 5G CiRf' _ tv1UD Pr'21~R ' -P ( ~ . L aim H~ VFW cevc F G ~n~rea e in c~ tb qG Pi n n .4~t pJ~ ~ OA OU v4:30 3 50 TRIP dv1PR PR1DRt 0 50 SERI;( RIC Fda.~i ~X,acF:, P,f~l~s7, PCH G,~ipei tr.,±c sh3a.. Jaei[tare'r~:e. 0=1:00 - C8'GG . _ PRIDRL Servrce r,g 1 50' TRlP_ Vh'!PR PRIDRL Fio~N :.heck, P.~Stit, RAH ~" CP wiper trip 1,'dellbare irea 6.%192U06 06:00 - 07.30 1.50.. TRIP __ WfPR PRIDRL . - 84u0 ft ac 0.00 hrs. Cont. RIN wi ,er tr.p 4" DP reca li G7.30 i2~0G 4.b0 C~RC_.., t~~7UG_ PRIDRL , , p u or, wash 60 ft to bfm. r=o fi[1 Fla~h~ check, C.C fuids pump H: `~s d i2~00 1530 ' ' 3.30 TRIP DP _ PRIDRL . svaeep an tai pill. 194 ui;tizs burs up gas 13 uni s bacE;graund. shakers clean. ~ PJSN,, POH 4~ Dr to ti ;h, Frole at 5380 ft .5 30 - 17'30 2.00 RE~,Rt-- Ot*_ _ PRIDRL _ . V1+ork stuck pipe at 6360 ft. Regain rotat;on s` reciq o :anon. r,ariial pkt cost re-c;ip : rotafE. Rrgaln ,(`u r~ sir •e:urr s arge a~,tintitres ' 17:~Q X1:30 i,00 TR?a DP aR1DRL sha{e e[aystone returns ~ aryl cam i e rr ..`eae. No gas. aJS~-~ rrsumePOH4' ~ ~ ?:: 0 X3:30 ~ - 200 TR(a BHA- SRI _ __ DRL CPfcr E ,r ~~ ta~.v check at 7" csd srae.~ r:o'N' check. Hand,c 6HP Iav do dr~ tn( 3SS" 30 1.GO RJR>J i ELt G PR1t~L , r 'PJSt~.r, RL! E'ag cruic 30''Q - (3:00 2.50' RUM1:PUI ELEC PRIEVL . RfH E-line ta'~ridge at 85ci4 ft U3:30 03:3ti 0.50 'J,rORK ELEC PRIEVL . Attempt work toed thra~gh c~tisi~rucii~,r~ no s ce f G3:3G u4~3u 04 t00 RU^>lPU~ ELEC aR1EVL , ,~s ss. ?.15tU1, rlov/ check: PON E-!lrt~ l )oe~ tools :0 05;0,a I 0,50 RURfl ELECPRIEVL RD E-Jcg equip. j 05:00 - G8:G0 1.30 Pt,;LO_ ~ 6HA PR i EVL 1 PJSfv°, f~1U fi 1J8 cieanav# 8!^{q, ftoyy chec;<, P,IH sump. j t •^_>c:?0. ~'ODS +36:00 ~ 1s:30 _ 7.5G TRIP flP_. ;PRIEVL - ; Cont RIFE. `allow E#~iA with 4" DP to 115G0 R ~lda ` a ! , s a ;ram- t 851$, :5581. 9!722, Si tO fiY.~Precau4ion wash.6~ ftto btrn. i~o tifl. ~1?=3C~ - 1:00 3.5tJ CkRC E(utUq_ ~PR1EVL 285 gpm of 9aou psl; CSC fluids, Pump Hi-Vis ~w~ep fallow~~ ~i* iH h t Si , . . w p ght increa,e cuttin sat - k 9 spa er Card circ shaker clean. No am (h~~ q vw. i 7:Q0 - G13U - -_ 8.50' T Rap OP PRIEVL ~.- ~ -, Btms up gaa ~~0, EO - s0 unas bkgraur~d. PJSM flow check POP" 4" D?' f r . o E-lags. No drag !gain /lass Corra;i polo fill 0':30 - 02:00 G.Sp' TR3P BHA PR1 E~~'L ___ . `Elav~ check, std bf: BHA near {loon ~ 02.00 - 03:G~0 1.00 RURD ELEC .PRIEVL , . RU E-leg equip fiovo check 0'00 - 0.°3fl 0.50 LO^_ OH PRIEVL ~~ , . ' R;H E-logs (Goad combs) to prr~+, ia~rs ~ub{e s3eptn S ion f. l ~,, ' ~ O ~ 7ai:e wi, work through. Corr ba log s Of 28 f ~ ! ! oi 11 200Es Or.vJ C8:J0 Oc 00 2.00 LOG_ OH PRIEVL . g i ;. ~~j~E ~ ~Cont~h r ogs to 5400 it. Hare full nu gain !loss I . 08.aC 0.50 LOG. OH 'PRIEVL , . PJSir~t!, flav check POM ~ vire;ire ~ ' ! 08'30 - 09:30 100 RURD ELEC PRIEVL , . . RD wirelme equip ciea~ fcor ~ u9:30 13.G2 3.50 RURD_ ELEC PRIEVL : . j PJSti9, fiav~ chick. flAU shuttle BHA, RIH same, toad E-lag toots ~ 73:00 - 15:00 ' 2.00 RURD_' ELEC PRIEVL to shuttle BHA, sur6aae test, possible battery failure. Pull fools, froubieshoai on catwalk repair tools } 15:00 - 01.OG 10.00 TRIP. ~ DP_ 'PRIEVL . , ' Re-load shuffle, surface test, test surcpssFal, RIH E-lag equip j ~ an 4" iDP fo 1 750G f} Circ 1 work pipe various intervals as prep. ~ I for tollowirag wu~e;ine Icgs. ; fight at 862Q. 8S4o. $913. 892D. 894(7 ~ sQi:G'G - G3:30 ' 2,50 CfRC tdtUD_ PR1 Et/L . 95b0, 9568, 9638. 4 ft idl. Circ, purFip Hi Vis sweep Lar e amo nt in . g u s cutt gs fc surface. 03'30 05.00 ' 1 1.50 t_DG _ _ I flN PRI EVL conf circ shaper clean far E-logs. No Barn i .oss. aul} up 12Q ft, drop da;i, pump / depict' foals G5:D0 - 06:40 1.Oi LOG-- O~I~ , PP, I EVL . P,iSM, wn~mence E-logs ? 9=Id3 to 1061' ft at On00 hrs. ~ &, '2220G8 t76~(?0 T~i ~3cG ~ 1 50 LOG OH :PRIEVL . Hole full, na gain l less. Cont. E-togs on shuttle asst' log up ro 5300 R G7 ?0 - 12.3E 5.0(} TRIP rt'~P~ PR1El'L ' . . POH ~" DP to BHA t shu~ttfe assn 9G:3G 14:00 14:4Q - 14'3G 9.50 RURfl_ ELEC PRIEVL ~ 0 50 SERVIC Ft1G PR . P,;SM, RD E-log equip, stand back BHA, clear floor. _ IEVL Service rig £''Ga!eu. ~.. _,.. s7 iC Arai. • tt~arathon Oil Gt~rr~pany Page ~o of ~o Operations Summary Report Legal Well Name: NlNILCNIK STATE 2 ~ Common Well Name: NiNILCHIK STATE 2 Spud Date: 5123,'2006 Event Name: flRIGWAL DRILLING Start: 5!24/2006 End: 6i22I2OO6 Contractor Name: GLACIER DRILLl~7G Rig Release: Group: j Rig Name: GLACIER DRILLING Rig Number. 1 Date ;From - To ' Hours ' Code ~ Sub a Phase ~~, Description of Operations ~ Code l ~6~^2'2006 14 '0 15.00 C ~C R'~'R~ ELEC PR,EVL PJS^ ~. Rte ~+,.re[ine or ~maying Ieg. 15.OQ - 1S.3D G ~0 LOG O'r PR.~VL ~1H E-lor5 ~n wuelm~, ~ irk p~ n tig~^F spat ?500 f~, cunt P,?H !~ 0010 tt. 15:30 - 18:30 "..00 LOG OH PR1'ti~L .Attempt pass ii010 it ~ +th logging toots, cannot pass. i i '' 1G:30 - 1?:OQ 50 LOG_ __ ON P~ ~cVL rJSAJ?. 10~~ check. PO1-i ~a~!rc~~;•~e. , 17 DO - i 7.30 0 50 R':~Fi~ EL~C ' °R ~~VL i=~ow check, ~D wir+;i(n~ epuip, C'e8r f(opr, i i i ( r i '. {{{ 3 [ ~ i _i I 3 f 1 ~ 1 Ii ~ } t f ~ E 1 ~ ~ ~ 3 I ~ 4 4 j 1 ~ j ~ ~ 3 ~' ~ ~ j i I c { 3 I I l r ~~ . ~ , .. _ ,. ,, • Mara#hon Coil Cor~par~y Operations Summary Report Page 1 of 6 j Legal Nleli Names NlNlLCHI~C STATE 2 Cor-nmon We!( Name: NINfLCHiK STA TE 2 Spud Date: 512~i2006 Event blame: C}RIGINAL COMPLET1flN Start: 6123/2Q06 End: 7I1012fl~36 Contractor Name: GLACIER DRILLING Rig Release: Groin; Rig Name: GLACIER DRiLLfNG Rig Number: 9 Date Frort~ - To ' ~-iours ' Code ; Phase Description of Operations , Code 6'22/2006 1 -36 - 9:LC 0 50 PULD BHA PR1 E`b~L AIU 6 1/8 ?eanout SNA. fIQ~,~~ check R H .ame. 1b tJ4 - LING ~.G6, 7RtP DP PR1E'.'L FO IJVv~ BHH SNI S~. ~" Dp i~~ CS3 SIIOe 3 .~3L'l} ft. ?1 X00 - G6 DC~ 9 OG 'v~1Ri~QN ' ORDR PR1 EVL rnlast on E-f~ evaluaGan. 623f2C0o 06.00 - 17:3;- ~ 1.5C CIR~ ~ p.~",IJp ~ PR1CvG Clrc i cord flu;r~s H:~i~e Uiait on orders ~ r ,n ;;r~ductian Iir~er. 17'30 - 78.30 1.C4 TR'P ;'d'JIPR PP,1C5G POD; 10 st nd s,~ioer trip, lay dr2 excess ape :n mast. ":8:30 - 13:36 ', 1 CD TRIP VrtiPR PR1 CSG RIH. no do drag, no ffl. No gain !loss. 19:30 - G6:00 10.50 G!RC ' iv'sUD_ ' PR7 CSG Glrc +' cond fwids ,nshila wait an orders to rt;n prc~rrction liner. j 6124,'2006 r~6:00 - flB:36 0.50' C!RC _ iv1UD_ PRICSG RaGie/e orders to run productiar, liner. j 0:30 - 00:00 ?.50 Tr`~.IP__ OP_ Pfi1~.,SG Drill stung Triist off ~ parted. E~rop approx 15 tt tv btm. TO* 1'%'r 1 ft. 1 Inspect cror~~~a ;drum ` d~iq l~ne. flo~r,~ cr,u.~k. PJSt+,S, PnH for fish tools- ~ QB.CJ 11:JC1 ? 40 »'dRITOP J E41P PRICSG bJ0 fsh tools. i i? v0 - 13.00 2 04' PUL©_ BHA_ PRICSG Take arrival fish tools EAU cvz~ ;hot BHA. fiCw check, RIH sanie. 11 12-tJ0 - i~:OL' 1.00 ~ RIP DP PR3C.SG PJSM, cllo~rl BHt1 ~.it'~ ~" OP to'2o0 F; 14:40 - 14:30 0.50 ENG,4G cFISH PR1 CSG Work overshot c~~er f;sh, all indicators sf~r~.,w engaged. 14:3(3 - 15:3(0 2.00 TRIP DP PRICSG PJSP,7, POH ~" ,CP to Bi-{A. I 16:3rJ - 17:30 L04 PUL^u .BHA_ .PRICSG Fish retrieved 164`;/r,, LD same. LD fisn tpofs, clear floor. Inspect fish. Tube vv85hE~ out and parer: in slip area. ~ 97:30 - 46:00 12.50 PULD DP ~~ PR1 CSG PJSM. flow checit. PpH 'saying do ~" C7Pfvt inspect;on ~ Wash ti05t hole 7800 In40 ;t. 161 arty 6HA remaining ei 0600 hrs j 6;~'~'ZOQn U6,00 - 03:v(J 2.50 PI~yL['?_ DP_ PRICSG P~S~~1. conf. lD 4" DP for iar~pnc~toTf, 1 '~JS.s:, - 09:3'3 9.04 P~JLD~ BHR _ PR1C5G Flowr chef:, LD BHA for insceot;en. D9~30 - 73:0(? 3.5C P~JLD _ BHA PRICSG PJSM, PU 6 7'8 clean o~.~t BHA t3.G0 - 9o:G0 3.GQ PuLD~ ' DP ' PRICSG 'rollo~• BHA with in3oecti-d ~1" DP ir, sn~ ,es. 1006 - 18:30 2 oD R=PAIR RIG- PRICSG PJ~t4, repair desks clut~n 1830 - 19:3J 00 P'"' D OP _ PR rCSG 'Resume PU ~` DP In singles. to 30 - 20:O~a L.S~' R€r'A.tR RIG PRICSG P'SPA, shim d.~~~s clutch- 2u 00 - 23:00 0 04 PULD DP _ PRICSG Resume PU 4" DP in sir,yles 23100 - 42:4 _r 3 60 RPPAIR RIG_ PRICSG Change out saver sub, replace grar3ber ties. 42:00 - 46:00 4 OC. PULD__ _ DP_ PRICSG PJSN9, flew creok resume PU ~" DP in s ngles. f Fill ~ load rack, strap pipe, vinous intera`s s~!tilc RIH. Correct displacement, no gam r foss. 612612©4S C8;04 - 12:0,^, ' 6.C0 FULD_ ' DP PRICSG Cort. PU inspected 4" DP ir, singles to 11 nC4 it No fill. 1 ~.00 13:D0 1.OD' ChRC_ ' Pv1UD ~ PR 1 CSG C;rc t pond fluids for liner run. vo gait. ' Icss i ~.Ov - 19:00 6.C41 PULD_.. : DP _ ' PR1 CSG PJS(`vl. flew check, POH, lay a'n l7n jis 4° DP. 1Q 04 22'.34 3.50 TR,P OP PRICSG Flawcneck LD BHA. '.22:30 - 02.3E 4.00 KURD .CSG_ PR1 GSG ' PJSM, ready floor for ~:net run, RU ~,g e ,uip. C2:3G - Oo:00,~ 3.d6 RUN _ _ _ I CSG ~ PR1 CSG P~IU shoe track, thread lock all connecT~ons. check flora. (Shoe, 2 ±ts 4 112 L80 I2.6~ Hyd 533, floc: ccflar, 3 jt 4 112, Ldg collar), follow with 4 1!2 liner to 9b00 f? at 0646 hrs. Fill al! {is, correct displacement. 6/27; 2006 06:00 - 08' JO 2.40 RUN CSG_ ~ PR1 CSG ' Cont. R1N 4 912 prod Gner 12.6, L80, Hyd 533 to 2833 ft. O8.C0 - 08:30 0.56 RUN CSG ' PR7 C5G Install PAC valve. 0£3:30 - ~ 2'.30 4.00 RU81 CSG_ ~ PR1 CSG ~ Resume RIH 4 1l2 liner to 5751 ft, brk circ. I Up 72, Dn 3b, Ro* 68, :~ SP€vt at 293 psi Note Hyd 553 begins jf 105 at 3'x07 ft. i2-34 - 95:04 2.5:1 RUAI _ .CSG _ PR1C5G Change elevators I bat#s. ~1U finer bar, ta1U cmt hd, stand b'.~c in mast 15:U6 - 15:3G 0.56 CIRG ~ 'MUD- PRICSG Circ, confirm liner bore free. `95:30 - 18:60 2.5D RUN ~ CSG PRICSG Resume RIH 4 1/2 liner to 8030 ft. 98:00 - '9:00 1.00 C1RC MUD ..PRICSG CB4J, increased quantity cuttings at shaker, cunt rirc shaker clean. 131(]6 - 22.00 3.04 RUPJ - 'CSG .PRICSG ~'~ Resume R!Y 4 '11`2 liner tc 14100 EE_ Increased drag. Gan not rotate vditflout recit~rpcatror~. 22:Ou - 23~3Q t50 ClRC MUD PRICSG CBU at 1690D ft, no gain /toss. [ncreased cuttings at shaker- PVfaraYhal~ Uil Gomp~ny Page 2 ~~ 6 Qperations Summary Report Legal WeII Name: NiNILCF-IIK STATE 2 Common Well Name: NiNILCHIK STATE 2 Spud Date: 5i2312D06 Event Name: ORIGINAL COMPLETI ON Start: G/23~2(3fl6 End: 7i1fl120(l6 ,Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 r Date ~ Erom - To ' Hours ' Code ', ' Phase Description of Operations _ ... _ . _ - - Code - - ~ _ _ _ --- ---- _ __ __ _ -- - ----- r 61`27!2006 ,23:30 - 02;fl0 , 25v' RIJP! CSG ~ ~ Pik ICSG Rasume REH 4'2 liner to 1 ~=;40 ft. Eridged Q~ at 10120 ft, work 1 ' iine~. Eotate ` r~-cip ~ 7rougt~ br~dye. Slight PKF, coat re-rip, - regai~l normal pump p ss. Ccnt. ~d,H tc ' 140. e;~o~k tight hole at 1C~1z30, 10250, ":J53G, 11~JE0. ?1196 `:. 02.00 - G2'3©_ 0'50 RC,"P CSG F'R1~SG >;/il :cp dnr v:~a~~h 11440 - 11:x!}0 #t ~ ~ fat. Shoe ? } 500. Moat ' 1433. ! +ry cofar `:14Q0. PAG 8667, i-igr 5725 02:30 - (76:OQ 3.507 ~uIRC__ MUIJ_ PRICSG Pump ;.arbide follower a~it" dye sweep ni. ;Results inconclusive. make reaey Sweep =r<". Court i;irc h~28,~2006 Ob.00- x9:00 ' 3.OCl' CI:~C Pv1tjD_ PR^~ GSG Take returns carbide i tit t/is sv3eep ~~^th dyu, Results shaa~ approx 15 -~o v,~a~nout_ 09.00 - 9~;t1{7 ' 3.0"J PtrN1P CC~tT s,PRICSG PJSA~1, commence n_mt 4 `i:2 liner. ~~ ~P~rr~p 0 bols HZo, Tpsi iiraes ~ ,GO p~i j Pump 20 Gbls '14CS4 5 -peep at 1 ;ppg wish due. Pump batched slurryl IOC; 6 Gals 2P.0 s+a G, I ~ ppg, 2.0 ~ 9 ,~Id't ~ Wash Imes, drop plug. ,con(i: med) p~~mp ~ bbla X20, pisplace writh 1x^.2 bbl_, mud dump pI 0 .v ,h '725 psi ~~' S a~in,- i ~ Set hgr. con5rm set, b,:ild tc ~a°9 t s~ to r -! ~ase 1 3500 psi ;egu~red t~ pass Pf~C sha ~/itr plug. j ~ Attempt opan PAC titi~;th 400G ~~ ,.,!'~ ~, ~,~an. Bleed press. ! E 1 ;1CP = 100 psi at 4.5 bpn°~, fiGP -.693 a4 1.5 bptri, Ro cmt to surf. I } ' N4 yaia f 'oss during lab. j # ~ Plug bumped. cmf in p]a~e 1fl~ hrs.. 12'0©- 'f3.0{1 1,00 C`RC ' ~~1UD ~ ~ PRICSG ` PJ51~9, release iln9t tort t+xtlfrom hgr: cirri BU, +'~t3 ctn# t~o surf: 13:©0 - 16:30 3.5D TRiP~ : DP ~ ! PRICSG PJS!~i, PDH 4" DP to sur~aee. 1b':30 - 18:30 ftIG 2.00' 5ERV(C PRICSG S2,rvice rig. ci~t drlglir;e. 18'30 - 20:30 ? 00 RUF:D_ SLiK PR1CSG RU sh::IJine uniE for fen',p fag: 2J:30 - 02:30 6 GO I LOG CSG_ ~ PRICSG PJSPvI, RIH temp log on sfickline trs PAr.: vahve, can act pass PAC valve at 8067 t?. Commence temp log 3o6G - 2000 ft, Or'30 - 05:00 2.50 ' LOG CSG =PR'tGSG Evaluate temp log, transfer data to DAOC Gee Dept Houston. 05:00 - 06:OC~ 1.00 RuRD SUK~ ;PRICSG PJStst, ftD slio?cline, release unit. 6!25f2006 E;u:00 - 0T.0{: 7.00' KURD SLIK ~ PRICSG R/D Poltard Slick Lire C7:C0 - 11'OC <1 00' I:~AiTO~i ORDR PR1CSG b'Vait On Orders. Break Do:vn BOT Cmt ?-!sari. Service Rig ~ ; 1:vQ - i2~00 1.30 KURD ELEC PR1CSG PJSfv9 ; R'U Expro E-Linn, G'R Temp Loe Tools 12:00 - IQ:OC 2.00 RUNP~JL ELEC PRICSG RIN V:+ Er.pro E-Line Toots T o o66G' Roo GiR Anc Temp Lcg ,Locate Collars ~ CentraG~ers. Set Depth For Squeeze ?eras And bridge Piug_ POOH'y+N E-Line To©ls. And L;D ~:Cv-'4:30 O SC' ftiJftD ELEC PRICSG PJSA~i ; R'U Setting Toc! ~ Composite Badge Plug ;4:30 - 17:30 ' 3.6G SETREL~~ PLISG iP1CSG RIH ~fJ Composite Bridge Pl~~g Log PvlarkerJoints Position ( CBP ~ 8395 And Set. 77:30 - 18.00 C.SG PULD._ PGURi 1pR1CSG PJStN; P~i,'U Lubricator & Expro 2'X 3 378 HSG Pert Guns b'd PX-1 Safe ©etonafieg System { o Shots pf 12 shots total } ,';3:00 - 20:OG 2 OG RUNP~J!,''~ ELEC ~PAICSG 'RIN W/ r er` Guns On ~- Lin... Set Depth, Shoot Perfs 8385'-8383' FOOH & L1D Tools R,+D ~xpro bVLS 2000 - 20:30 C3.5C PUL D_ ~~ PKR_ PRICSG PJ9tvt ; PtU & t~iU BOT 5.25 Tie 3a';~k Seal Stem Assy 20~ ~~ - OG:Ct~ 3.50 TRIP __ DP ;PRICSG R!H y'J Tie Back Seal Assy on DIP T 5?30' Tag Top O` Ling at 5130' Sting Into i_~ner Hai,get Est,Gilsn %sr::uienbof` Through Perfs Ai E383` 0x:00 - 00:30 0.50 RU!~O CIv9T l PR1C~(a ' PJSP,.I; Install EOT Cmt_ Heae OC7~30 - C1:8U 1.OG C1RC__ i~J"J_ !PRICSG ,Girt Condt f~~lud. Rt 572' X1'11 16G Spn~ 5 b6ls °er nrtir~ 680 psi 0. ;tD -{;3:3U 2.00 SQUEZE Ctv1T _ jPRICSG PJSiv :Pump 3 bbis H2o Tesf Lanes to 320upsi, Pump 20 bbls PhCS-~ Sweep ~ 10ppg. (Add Red Dye To S~Neep ).Folloev w! 3i 5sx 13ppg Glass G Gmt~ I Oh ;;A-U0 2.5 h 3A-56 .5 EC-1..5 R-2, .4 CD-32..' Asa-3G1 And 'lghs t=P-6L. Yield i FN r.. 5!~_.~w7 o51~i71 AAA • Marathon Oil Ctjmpany i7peratiQns Summery Rep©rt Pags3of6i Legal Well Hams: NlN(LCt-iI~C STATE 2 Common Well Name: N INILCHIK STATE 2 Spud Date: 5i23I2ijO6 Event Name: O RIGINAL COiv1PLETION Start: 6/23;20OS End: 7110l200~ Contractor Name: G LACIER DRILLING Rig Release: Group: ~ Rig Name: GLAC9ER DRILLING Rig Number: 1 Date From - To 3~aurs ' Code ' Sub ' ~ Phase Description of OpErations 1 Code 6i23`2i}4o G1 3'i - 03:30 2.00 SQUEZE Cr41T PRICSG 2 019 cu ft~x ^ 35 6t: Slurry , c;al. 1 C_ ;<: R.aurns. l Comer;t !n Place ~ti- C.ir~r nv_ 6 29;G~6 '0;:30 - 0:30 1.0~ G1~F2C~ (~tUD_ ~ PRICSG !Drop bJ~,per plug d~sp.ace DAP and liner To 838,' ~'<,5th 6!~ gbls i ' 13pG9 tti4ud & 44bols 9 5~pg Mud. 20th .pacer Anc; 25bCts ~ 1 Gernent RetrnedTo Since . 25 hbts G# Cemem was foitow~d By 9.5 PP3 ~~Rud. 0~ 30 - 06attt 1.50 't'R1P f ©P PRICSG ':.POOH F- 5724 !nN Tie Pack Ssai On Drillpipe 6;30f2006 `OoUJ - Oi':30 '.50 TRIP_ i3P~_ ~R1CSG Cont. POGSH iN/ tie Pack Seal Assy: And LlE? 07:34 - G3:OC 0.50 GIEA~ _ R!G a'R1~:SG c=lash C)utSC?P Stack. OR.QO - ;;.30 5 5'? TEST.-- BOPS .PRICSG RlU, PullWear Bushing, Test BCPE250J 300Q psi j All Cornponends Passed. AGIGCC t~litness Waved By Lou Grimaldi. 13:3{1- 15:04 '1.50' WA1TG)N GMT_ PR1CSG ' WG1C. Set 4 9:~2 Tisbing flee Pipe Racks Drift And Strap Same. ;15:00 -'1F 30 ` 1.50 'RIP (DP_„_ 1PRICSG PJSM; N11U 5.25" Pol ~hPng 111111 & 71H To 250fl` WOC ` 36:30 = 1 &.00 '; 1: i0 4^7AITON GCvtT_ ~ ~R1 GSG ' CONfi V~fiJC: Cora. P[ep 41,`2 Tutsit~g Strap 8~ Qnt$ For A Iota' Uf 139 Jts. 18`00 - 03:30 9.50 ~J'b'AlTO1Vj CMT_ > PRICSG ':WOG:. Change liners & Swabs # 3 Mud Pump 1 P- 4" To ~', G:na~ge H,{d, Rams on Eev~tors I Service Boiler. ~S13:30 - 1.30 ~ 2.00 ~ TRtF'_ ~ L11'__ ~ PR1C5G Caont. r~(3~ F- F6flU' 550}' ~Vt Pszdishir~g tv1i~ Asst. Wash GYri'C F-500' To 5700 05:30 - 06:411. O.Sfl; ClNC}UT CSG_ ;PRICSG Ciro. Rotate Glean Glut Tie- back Ass~~ A; 6725' :''d BQT 5.25 Po'isfa 1`~liki 7'1 2,06 04:0.0 -06:30 0.60; Cl1VG)UT CSG_ ;'R1CSG i'o!~sh Tiebact: Sleeve W? BG)7 Mi11 Assy rlt 572a 46:30- r?aG 1 00~ TEST CSG PR1CSCy Test llderTopAt X724' Ti1500psiAfter lG chin PrESSUre . . ©ecreasea To 1100psi andRemar:a~+ At 11000isi F! 20mrn. Er7:;;0 - 10:30 3.00 TRIP iDP__ PRICSG ~ PJSM;Pooh'oV/4" D1P And UD P©lish (y1j1I F~ssy. ~1Q 30 - 11:OC ' 0.5G' SERI/lCRIG PF.1CSG Service Rig. :11:00 - 91:30 ', Q_5C PULD~{PKR,,, PR1TtE PJSM; P1U i1.1JU baker ZXf' Liner Top Packer 11.3v-1~ 0 3DC TRIP ;DP .PR7TIE RIH+AJIZXPPackerC)n4"DIP ToTop~liner%r~5724'. 1~1:3C - 16.30 2-OQ SETRcI~ PKR_ ~PRITIE EST Parimerfers. ©rflp Settlrtg Ball, Set Packer ~Al 40k Dn, Wt. f i & 38G0 psi To Shear. UnsYing Paolo At dn9E.68' ( PiU Con#'irm Packer Set. 16:30 - 18 3c' 2.00 T~ST_ %CSG ~ PR1TiE Test Linter Tod 14 1 2 '~4ner To 1200~si Final Psi 1090psi ~ Pressure Ha1d For 5 Pd~n Tien Decreased To 3090 Over iThen Held 108Gp53 Fpr 17 P,41n; 1$:3^ - G0 3Q 6.00 PUlD_~ ; DP .m.- ! PR1TlE ~ PJSAA :POOH Li[7 D%}Inipe F- 5639' iJD 182jts Anct Packer r setting Tool 40:30 - U3:30 3.00 RURD~_iCSG_ `PR1T1E ; RlD P,ig Floor Of All pea Handhnf~ Tools, Ci0 Ba;fs ~ i R/U Csg Tools. 03.30 - O~.OtJ 0,501 RUNPULM:PSH PR1TiE Puil Wear bushing 04:00 - 06:00 2.00 PULD T BG PR1TIE PJSt+t~; WU baker ~ 1.2 Seal ftssy & P'U RiH V'dl 4 1''2 IBT 12.60 i-30 Tubing 7/212006 Ob 00 - C~9:G0 3.00, ?~UNPUL TPG PRITIE ~Contune f?i~nning 4 '~%2 Tubing T-3256` 49:00 • 10:40 1.00`?'2UNPU'. TBG PR1T!E tnstaii BaKer Chemical Injection tv9andrel, R!U Pollard l pneumatic Sanding tvlacnine 8 Sheave 70 ?tun 1?4" 0.049. SS Ccntroi Lina. t~8,'U To Chem Inj NiOpfe and Tes; Tc 2000 i r ~$~. 10:00 -13:30 ' 3.50 RUNPULTBG ,PR1T1E 1Cont Run 4 1~2 TPG F- 3266' To 56~J5'. For A Total of ? i ~13Tjts 4 112 12.60pnf L SG It~T TBG Ram 113:30 - 15:30 2.00= f~t.iNPUL; TBG_ ' Pr"~,3TiE ~ lnstallTubmg Nar~cuet And 6 01 fap. Space Out 'a Liner Top a i I Pac(ser At 5606`.21 Ard Aflule:~hoe A.~,7Q7'.32 . T e aacr; 1 s i Mara#hc~n Oil Company Page 4 of s C3perations Summary Report L+=gal'~fell Name: NiNILC#-~fl~ STATE 2 Camrr~on V~~ell Name: N1NlLCHiK STATE 2 Spin Date: 5123~2(l06 Even# Name: ORIGfNAL C4NCPLETlGN Start: S`23120~6 E>~d: 7110!2fl06 Contractor Name' GLACIER DRlLUNG R+g FZelease: Groi!~: Rig Name: GLACIER C3RlLL1NG Rig N~n~ber: i Date Fran1 - To , Ht~urs Code Code Phase Descs'i~7><ior~ of flperat~on~ ,, .. , t~:'„„ ,.;1~ CIrRC C:rLv °R1 ; iE Cmc r.ti ~ . u.v~ r~r rlG ;;~ r`! ~ : i;C~ ':r! Cc _:~.3:., ,:'r'+, 7,~ ,~,~ 7'4; 2JCa 06:60 - U5:3G F~,r r1'at..i Of iv~~t+bls. G 5~~ Rvf I~:-;L T BG_ Pr? , ~ . ~ r..~s G;,t ~~ ±ly Hd,'t~~r L, ~,rt ~c .,. .rtd , ~.., ~BG narlge: uerilS `i; ;Q(+fijiSi F 11 ...ir;. TdS; (i~'4: { ~JnC T~JC`i i"~i'1yeC !fl '.~i'P!ItiF ud K3?~ ~,..., ~. ±E S Y`il<~ Pi7.1 T, c. c,S: TrE~iP,C Tv i'~g`,'-pSl F~~1 ;-~!~'.:d !~~y. ^.'~ i?J:.',if;r [J(tt"' ' ` rrS7 C:.i~ PR'-;c +..~r', -.. R:i,..d ~,es; ;3acr. SiCe 4 ? ~ T5G }; T' GSG. r~ i<r.",~:: != ~_ .~-.- ^in~,l psi '. ADO .?e=; Passe 2 rJ0 ~tURJt~TF;R °RiCSG r2;D Tt;b,n , Tc~u;~~ CO S.:II_ ~I..;t .;- R L' ~ 18 DP Nor: ;,^c T ou!~. r'~ni7 Tomas P.;St,1 .:;CI P'„IL) DP PRiCSG _.._.. ...._.. ~~~ Pipe Racks Lo;:d ~;; 3 , ~i 5ttr, •~ ~ 7° [)r -.i,;pe ..;gyp tit~!:I urlti ~=;~IT(:. Cfit~^~yC QUi P'~ut~ R'3:"`; 'ICS ? /'=; D'F. i.;'? TcS T 8('JPc +i'R1CSG (nstai; . 'J~la, C:~e:~. ~ ~~::z. 7ea; J. ;I S~:a , _..C , ti: 0 ?_„ Jv PvL~ Ct-Ir'=, ?('iI~:UV - - P/.3 °.' U ., 1't5 ~HF~ 3:''4 ~tl t,'r},ar 7x ~ri:!:.+,+, ._, J_:'~; 'cte P~n?p Ot3' Staff To ~ ,t.-.r T~~~ n3r~~.c>r. 2 :~7 F'JLJ !;P PRICSG - - 'F'IN P:IJ 2 7'ia DriL' Pi;;c~ Tt .,.: Cf 7!~ ,,,~ ... ..!,vi~r-!r -, i} PULE ~R1CSG a;' __ __ Cont. i o 21H PrU :` 7e8 d,P 70 &~3;c' rc- ~. ~1'~' O` 276Jts G_Si;C~~C~~J'C~SG PR?CSG ;vash~.n~GteanO.rtd ~_~I r..,.-f~...S .~36'' ..,~L~ ~JP' C`aT _ PRICSG U{~ L=p Or Soft ~ S<:ft Cc?a r;in~,te:i C, rent ri b~~t~ t CL2t1 Gilt TO S.~`~~ ~'T+:1p ~~ CBP- , " u~r.., ~.; CiRC '."'JJ PR'sCSG Circ & C:,ndition Mu~1. 0..;1 7~~5`__ CSG__ ~R1CSG - ' %~ ~umpt TO Estab4i.t..r,;ec;•c^ Rave n ~~8~ Pressure L ner Utz Try 17COpsi i~o Lcss O' FIB; ;:. Shut fn Pul?ap rkr„ 5r,rf,+;r; ?ressure Dc::~ ~a~~ d F- ; p;p~, I t .i,';CF>si lii 1 J ~~.1 fi. 0.50 P-.'iX r~IL_ P?1CSG Phonitc~riiVe4:.?i~mp,Dr;~Jc~a 7.00' TRir= ._ t~P _ PP,ICSG - PJSti": POOH F-83~o"~~'<` ter:;! Pipe 6HA PR;GSG i.Qti TR!r~ P(~6H ?,,~; 3 1r'ii BHR, :,tzr.; ~aa,Mk rJ C ~'~ '. :c,r & vars. '0.50 SERVlC ' RIG_ P;P'. CSG Service Rig. ~cjust Grab>;er rpa: & Ele~~a:ers ,.SG TRIP ' DP a,4'7CSG _. ___. PJS".9: tU9-U \~u!;; Shoes ~ RrH ~~.> 2 '~$ Q~P Tv ~iSC"13' At 0600hr- 3.50. TRIP DP r'R1CSG Dora. RiN ~^ r~9ufe shame rJr ~;P T- 93~~'' ~ 7r~p C}f CBP~ 1.25 CP,C _ fl'U~ P~;'.CSG R"v Grnt. Line Girc C n~,iior, '~'u,l i.7J Pt)P -P~ Gi:?T_. PRiC.s.~ P„S":'' : PllfTi~ 1`J~.i H`?v i>rSt L'fi@S TC 4',+:%`J.4'?. P;irnp 2Cp41/!c3$~ Ca ?fi.~13(3L~ g.i SX ~ ~`t.. F'..-£~3 -r .';~ G~-~~ * 1 -, F,S:~,-301 * 1 GPS FP- 6L iviix n; -+.9~±;i ~;~:isi+ Fur !'<"rot.~l Dg ;.14btls 1~ix W2o Dispi~::, v'r' .sk,r! H'~c 7t,en ti S_3 9-4 ;tfiud. Shut Dotivn Pull ~ Stands. Switch ?o ftig an^, Re.~rrse 0..,: 1guG Stks b'~.%ittt Reti,rr~s Tv Cuttlr~gs ?ac~k. 7rar'e Crr,t PinC .'ci HZc Spacer Rztu~,ne:C. +r; itch ?~+BJ cur Sq~eez~.. 2.uu SC~iEZs GFtliT_ PR1CSG r'1~ply 5gveeze osi ip To ?Qa?,~ss Fo- rls±io^~ TaRir Cmt. P(c`SSUre l.'1Cre•3S Csd TC 1U~L~?SI ii t'R;r ~;='~i.~i Al1'04' T;l f.',n ~fUp~;!:G{ T~ 1~i,'~. Tt)i<ii ~i ~.: `."'i+:;i t';.1?~~fEv. ~ii',ti:U r~Sl ~t~ bb!s Returned. For A Net Ot 1;,b' C,n; Sq'rs~,zwc. T::rr. Aver Ta Rio. Close rlnt~u!ar Frevr~ni~:r land Holr 'OC~i Psl F~(~' t~l'rl. (TI1T7 G' ..rCm i~.1; i:i^y Cr~it 3QL)!E:i'(t;*:~ ~`~ BSI 3g5 Nr. ' Crrl{ Tune To 100bc. 3.OShr ~i 0 :~G C,RC twr'~~ RRICSG - - Seed Of` PrESSUre, Crc ~r I, ~-•;r.~ vo urae. '~o Grnt Returned. ,7 ~. .~.~~.~ ?':aC ! o:~:n ~~i..~ , .,u'JJ ~~, ,~, - O1-~_ ~1 ,r, C~-Lu C~ ~.: G:;:G~'; 5.C if; .0 17:00 - 1 ZSi~' '7:3C-'~ 0;~ 18:u0 • G1:t~0 O1 ~ ~ ~~:GGJ ~:2'3~ - Gc•:vi~ !)9~ .0 # Cr °u '2 '' "+•4:30 ,. ;-.o-.a • Marathon Oii Company Operations Summary Report Pages 4f 6 Legal Weft Name: NINILCNIk~ STATE 2 [ Common Well Name_ NINILCHlK STATE 2 Spud Date: 5123?2006 Event Name: ORIGINAL C{~MPLET;ON Staff: 6/23/2006 End: 7l1 OJ2006 Contractor Name: GLACIER DRIL LING Rig Release: Group: Rich Name: GLACIER DRIL LING Rig Number: 1 Date Erorn - To ~~ Hours Cade i Prase Description of Qperations Co e r=412006 ~ 1 , {;0 - 20:00 5.0v TROP - DP -- PRICSG 'Monitor VVeli POOH F- 8? 35' And tJD t~,e Sboe 20:00 - 2i :3G i.SG TRIP BHA _ PRICSG ~' Mt`iJ Ciear~ Out 5NA ~ 2 P.iN 21:30 - 03:00 5.50 TR1? _ DP PRICSG ~R1H V~11 C3%i' To 3393' Taco Cr^ Af 8394.n 03:06 - Q3.30 0.50'. CiRC iviU~ PRICSG .'~ C &C ~.1ati Ai 3330. 100sprn 2150psi '290Pm. 03:30 - 04.30 ~ 00'~ TRST_ CSG ?R1CSG RfUTesf4 ;i2 Lin2r ~.t 3335' A"z 1200¢si ~-3fl min' - ! Rfter 3t?min 1100psa 0'+ n3 -x:6.00 ?.Sfl~ ClRC _ (+>nt~D tPR1CSG ',CB~C'~,'Iud At 8330' 7'5;2G06 OG:0;1 -v8:30 2.50 TEST - CSG ,~'RICSG ;C;rcuiate Arad Cend. Ulud r R~Test P~trfs "o ~t200psi , ~in2i psi 750psi No Test, D8:30- ?3:30 5.OD TRfP !DP ;AFtICSG' P,)5h1: ftatonitor'vJell,°;~mp ~JryJob RO{~!-! F-839Q' ?330 14:30 1.00 TRIP I6HA_ PRICSG L1L}JarsAedt~lotor .'.4:30 - 21:3^u 8.00 TRiP T(}C3t_ ~PR'CSG P:,`U Baker 4 1i2 Sting !n Ret~tinetAnd RlHtit 94sec. Per St~~d To ~3~T.:' 223.^, 23.ut 0:50 SE"RE LIP~R _ ~ PR1C~G Set Ba+.er -# 1i2 Cerne~t R?fai;terfi,t8>~+n ~C'A~btty~ P~rl`s. l Set Packer'~N? ',~ Rh. Tur,~s PIU To 3,ik Over String ~1~.'eiyrt t ( SEt 2uK Do>=~n Ar1c b Rh Turns P'J To 30 icC3v~.r String ~a~t, ( Retainer Release- Sef Dave On Retaaier ~J 20 #~ To Gonfirrn. 4 Space Di}t Stincier. 23.00 - 00.06 1 00 GIRO ~;UD ; PRICSG = Circ Cond. P.1ud. ~ OC:;,-J - 02.OG c 00 RURD OTNR ~ PRICSG PJSA~1: R+U Cement Joint. ~'O Elea atar5, ~ - ~ G2~)0 - C2 ~;, _ 0.50 ::Q'JEZ E 07HR P'R1CSG 'r~'J5M ;Pump 3bb1s Bnne. Test C:A,~;'. l~~nes To 350(7p~i. l Pump 3. 5bb(s 8 6 Bring I D c Jolumei S ag ;n1o I ' ReFainer F„ 8544' =u.abHs!: I ye Jor, Ra~~ .-at .4b~i Mkn i Initial Psi 750; At 'o37gsi Beg~n in}f.c~i.ic ~lU:d into Petfo r To,a! Ot 2 bbls Squeezed Away. Fir;al F,s: 1522. '-02:3{3- 24:30 ` ~ ? 00' P~1t~4P Cf17T PRICSG PJSh•1; Pump 1 bbl H2o FoBo~a~ed B°7 10bbls Class G 15.8P1~9 Cement t 6:35; +.5h F_ n3 +.3°ic CD-32 + t~,~ A,A-301+ ?gps ASA301 Followed B1124.5bbls 9.5 Mud. Spot fn Dr611pip+e 5t;ng !nto Retainer ,~,nd Sgaea2e 9.5bb1 Cement. Siar+irg SGueeza Pressure 78Gpsi Final Psi `f235ps!. lln Sting Fram Retainer And Pull lip 30' Rno Reverse out Drill 5inng To t Slop T~:nk. EST III btl Cm,t Returned. Confiinue To Reverse Out I p ,DIP ido Trace of Cemert( A?fer 2 Bttnis Up. Cement In Piac~ t' 03-15- 7-b-06 0~}. rJ - GS:OG 0.50 RURD_ _ OTHR ~ ~ PRICSG R'D Cement Joint CrO elevators. Pull 1 Stand DIP 05.00 - 05.30 0-50 Cf RC __ 'fiJ~_ `PRIC'3G Circ And Clear DIP i;rd ;,nnuius t7f Possible C~:mcni Contaminat;on 05:30 - 03:00 G 50 TRIP_ DP PRICSG r'JSA+t: POOr-i F- A344' Vv°;~ Retainer Setting Toil 7t6!"L006r G6.00 - 11:00 S,DO' TRiP OP PP,ICSG Con!. POOH r=- 8000' L?D Retainer Sett4rEg Togl. i 11:D0- 12:00 1 Q0' SERVlC RIG PRICSG Service Rig. Dwks,Top C?r;ve Crown And Cam2r. ,12:00 - 13:00 1.00 TRIP_ BHA__ PRICSG ~1,1a 3NA# 9 3 3i4 Bit, F.4otor, t2 3118 DIC 8 Jars 13.00 - 18.60 5.00 TRIP DP PR1CS6 RIH Vv! 2 ~;g DIP To 8327 '; Tag t-Sard Cerr~ent d At 832T ; ?8:00 - 10'30 C~.50 DR1L~ _ CP~%T_ PRICSG Dril± Cement r=1 832T To 83-0=1' Tl Ret ner 83Q4` 18:30 - 22:00 3.5Q DRl'~L__ CMT_ PR1CSG Dri1i Out 4 112 Retainer >=-83F+4' T- 83?5.6' 22 GO - 00:0{1 2.OJ DRi~L Cfa4T PRICSG Drili Out Cement F- 8345' T-8390' OC20 - C?:00 100 C'f2C_ MUD_ PRICSG Circ And Clean Up Cmt & JunF: From 4 ~2 ~!ner 0 .00 - 0?'.30 0.50 TESST_ CSG_ PF.1G5G R/U and Test 4 ;J2 Csg. To 1200psi. a 3C Pvlin. Fina( PSI 920. 01.30 - ^ ~_OCI 3.50 DR9LL CIV1T PR1 CSG Drill Out &€dge Plug F-$398' T-8400' 35:00 - 05:3•© , 0.50 ~ C~ P-LOUT CSG_ RRI CSG G,=O 4 1; 2 Ling F- 8•+00' - 366E Top Oi F`ac ~~t~e. 05.3D-x6:00 . -p.50 BRILL CM7 PRICSG j©rillPac~lalveAtS666" 7/7/2000 08:00.-0:30 : 3.50 >DRIt_L 'CPAT~ PRICSG iCon~t..D,~itlPacValveAt8666'prillt~ut I Marathon Oi! Company Page s of ~ ~3pera#ions Summary Repflrt ' Legal VVeli Nave: MNILCHlK STATE 2 Common Well Name' N1NlLGH1K STA TE 2 Spud Date: ~/23i200~ Event game: ORIGINAL COt>,~PLETION Start: 6/~3i2Q06 Et~d: 7/10/2©4~ Contractor Name: Gi_AC1ER DRIL LING Rig Release: Group' Rig Name: GLACIER DRILLING Rig Number: Gate dram - Ta Hours Cone ' Phase ` flescri~tion of Gperations Code - 7/Z'20u8 OE:GO - C9~3C ~ 5G DR.L~ _ j G61T I ?R1CSG to 8668' Clean up Jtrr~k { 09:30 = 13~.~00 3.60 TRIP 'Of __ °f~i CfiC RiN P;'U 2 7'E Dr:il Pict -:;673' 1'33$'. i Tay Junk Rt 1' 3' ,13;00 -13:3fl 0.50 ~ C3R1LL_ ?C~iT_ PRICSG ~vVorx And r_ttempt T o Clean Up Junk At 11338` No P(OgreSo 13:30 - 16:30: 3.OOi DR3LL_ Cf~iT PRICSG t~h~z and Pi. rrp SQ bbl. ~paceri`S~veep UJ ~.;% E,rP I Luba Fotl~v.ed b~180 bb4s. 3 6±t KCL B~ir~e :16.30 - GO C7C ~ 12.5© TRIP - DP - PR1C~G ';PJShd;POCJH L/D2318 Drill PipF =!11.;30' TO BHA iTota10*367Jt~l.~p 05:00 - 06.00 1.(~i TRIP _ ~BHA_ ~PR9CSG }P~H ~rD BHA, i~otc~, 12~ 3?;$ D;C. Jars j (C#ear Pity lush A!i L;neS 7l&120G6 00:90 -1~;Qp ; 8.00 P3k:3Nn ; 6~1PE ~ PR1T1E PJS~,;Sc, UPU, NID dOPP, Kill a Choke Liras. I ! ~ !- `Compirta Pit Ciean;ng. '~4:q0 - 16.00 ' 4.130 P~UUI~iC~ TREE ~ Pt~1Tt1 i`~~'U Tree T~si ~~`oic T a SGOO ! ?0 f~?in. Pui ~ 3PV insta.r Tb'+lC, Test Tree To 50J4' 10 3;~9rr,. 18:OJ - Oo;00 '12.Ofl ~ RtJRD R1G~ RDttACS PJSr'r4; Commence Rr Do~~~n Prep For t:1o~+~~., t Remo~,~e 6ais. R,rD Rig Floor. Set Out Epoch Unit. R:"r~ :+nd tv1ave C3ui n :; {v4ud pump.Guitings Tank. r2`D iCoomey Limes, EV' ,d Lnes R'D i~bad ~CuthllGer.. Van,~Clf}Pump Liners & Svrat~s T- 3" R1D Tip Drive. ,/<+200p ' 06:00 - 06:00: 24.00: RURD Rlta RDMO i RlL3 Torque Tube. RID Tt~p Delve ~erri;,e Lcop Rd Service _ _ 1 ~ Lines Tfl Sub & Carries'. Wan On Rig ?+e9eve D~~e To Weeken*1 1 ~Rcsad Restnci~~ns. f corm Rig ~~^.air~tnca. Stun, Glean Qerrick' j CIORed T~gQer L!•ne, Re~a;r Disc Brake in Carrier, Azljusi 5rake ;RID Au't~ Driller. Remove Turnbeckles C?r`U TttGeA~td Replace 5afeYy Cables .As Needed. UD 7op Drve. Prep Rig i. ~ ~ Far IUi6V2 hA4Clda~? JUIy 10. 77101~^tlt}6 `J6:(JO - 18:fl0 92.001 RIJRDT RIG_ ROf410 tPJSlstl;€3~D Service Lines To flor, And Choke House_ L'D ~ itutast On Carrier. Rerr~o~~~e Sack Vdirtd'.ldits Stairs Any Lanciing~rtsove`ripTank_E2~'DPits. ;8:00-0600; '12.OO~F*i1aRD RiG_ F~D~~30 ~PJSf+.1;Cr.insDa~n;nDog.ChokeHous~&~Jir~duvaiis. R~'D Oui RiOgers An~+ ^~r~el Tang. i~n~Y load O;~f. Complate I : R'Q Ps1eCh tv Parts douses. Lead Out J'Jcidsny Shop. ~ ? " ~ ~ G;,mplete RigDrnam. Release R+g Tv SD•5 0600hr?i'0 a f `, I ~ M Marathon MARATHON ~II Company May 16, 2007 Tom Maunder AOGCC 333 West 7t" Ave Suite 100 Anchorage, AK 99501 Dear Mr. Maunder: Alaska Region Domestic Production P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 9071564-6305 Fax 907/564-6489 E~~~~~ MAY Y 8 2007 Alaska Oil & Gas Cons. Ca-~mission Anchorage Attached and submitted for your records is the Form 10-407 completion sundry for the Ninilchik State #2 well. The Tyonek formation in this well was perforated and tested but has not yielded economic gas production. Marathon is currently evaluating the future potential of this well. Also attached for your records is the current well schematic, directional survey, and completion history. If you would like any other information, please contact me at 394-3060 or kdwalsh marathonoil.com.. Sincerely, i~~. Ken D. Walsh Senior Production Engineer Enclosures: 10-407 Sundry cc: AOGCC Well Schematic Houston Well File Operations Summaries Kenai Well. File Directional Survey KDW KJS STATE OF ALASKA S ~""' ~ ~~~+~G® AL~KA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AI~DL~~Q7 1 a. Well Status: Oil ^ Gas ^ Plugged ^ Abandoned ^ Suspended ^ zoAe~c2s.ios 2onaczs.i~o GINJ^ WINJ^ WDSPL^ WAG^ Other^ No. of Comp ns: 1 b. Well;l ~ i 8S OnS. OIT1frIISS10[t Development Q QnC~tO~~.oratory^ Service ^ StratigraphicTest^ 2. Operator Name: Marathon Oil Company 5. Dat Comp Susp., or ~~ Aband.: a./~j.0~ .Permit to Drill Number: 206-066 ~ 3. Address: PO Box 1949, Kenai Alaska, 99611-1949 6. Date Spuddeu. 5/28/loos 13. API Number: 50-133-20560-00 4a. Location of Well (Governmental Section): Surface: 983' FNL, 1,134' FWL, Sec. 34, T1 N, R13W, S.M. 7. Date TD Reached: 6/17/2006 14. Well Name and Number: Ninilchik State #2 ' Top of Productive Horizon: 2,614' FNL, 3,751' FEL, Sec. 33, T1 N, R13W, S.M. 8. KB (ft above MSL): 21' Ground (ft MSL): 148' 15. Field/Pool(s): Ninilchik Unit Total Depth: 2,966' FNL, 4,806' FEL, Sec. 33, T1 N, R13W, S. M. 9. Plug Back Depth(MD+TVD): 7,980' MD - 4,828' ND Tyonek Pool i 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 222,383.83 y- 2,245,845.93 Zone- 4 10. Total Depth (MD +TVD): 11,500' MD - 8,311' ND 16. Property Designation: ADL 389180 ~ TPI: x- 217,807.69 y- 2,244,434.28 Zone- 4 Total Depth: x- 216,400.15 y- 2,244,000.07 Zone- 4 11. SSSV Depth (MD +TVD): NA 17. Land Use Permit: 18. Directional. Survey: Yes 0 No (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: NA (ft MSL) 20. Thickness of Permafrost (TVD): NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Quad Combo, GR, CBL 22. CASING, LINER AND CEMENTING RECORD • fj~`1 ~~~ CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HO E S Z AMO FT TOP BOTTOM TOP BOTTOM L I E CEMENTING RECORD PULLED 20" 133 K-55 0' 126' 0' 126' Driven NA 9-5/8" 40 L-80 0' 1,614' 0' 1,329'. 12-1/4" 405 sacks, 12ppg, class G NA 7" 26 L-80 0' 5,935' 0' 3,439' 8-1/2" 265 sacks, 12.5ppg, class G NA 4-1/2" 12.6 .L-80 5,697' 11,500' 3,320' 8,312' 7" 280 sacks, 13ppg, class G NA 23. Open to production or injection? Yes ^ No^ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) ' ' ' 4.5" 11,500' 5,697' 7,426 - 7,443 MD 4,355' - 4,369' ND 17ft 3-318" OD, 6spf 7 520' 2' MD ' ' " , - 7,54 4,430 - 4,448 ND 22ft 3-3/8 OD, 6spf 7 810' - 7 858' MD 4 676' - 4 718' ND 48ft 3-3/8" OD 6s f 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. , , , , , p DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 8,383' - 8,385' 135 sacks, 13ppg, .class G 26. PRODUCTION TEST j Date First Production: NA Method of Operation (Flowing, gas lift, etc.): NA Date of Test: NA Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): I27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^ Sidewall Cores Acquired? Yes ^ No ^ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 A~~~5,071 v COC~~-1_A'o i0~ ~ ~ G1nac ~ B~~ ,IUL ~ 71007 -~'~3 ~~ ~~ Form 10-407 Revised 2/2007 R I r, ~ ~~ ,~ ~ONTINUED ON REVERSE G 28. GEOLOGIC MARKERS (List all formations and rs encountered): 29. FORMATION TESTS NAME M TVD Well tested? ~ Yes No If yes, list intervals and formations tested briefly , summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost -Top detailed test information per 20 AAC 25.071. Permafrost -Base Tyonek 6,267' 3,439' 10,682' MD Perf: 10,682-10,706' MD (2/1/2007) - N2 Cush 1920psig, no apparent pressure increase 8194' MD Perf: 8194-8204' MD (212/2007) - N2 Cush 1390psig, no apparent pressure increase 8058' MD Perf: 8058-8070' MD (2/3/2007} - N2 Cush 1440psig, no apparent pressure increase 7810' MD Perf: 7810-7858' MD (2/11/2007) - N2 Cush 1330psig, no apparent pressure increase 7520' MD Perf: 7520-7542' MD (2/1 212 0 0 7) - N2 Cush 820psig, no apparent pressure increase 7426' MD Perf: 7426-7443' MD (2/13/2007) - N2 Cush 820psig, no apparent pressure increase Formation at total depth: 30, List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Ken D. Walsh Title: Senior Production Engineer Signature: Phone: (907) 283-1311 Date: ~" ~~ ~ ® 7 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 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for i 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 and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: ff this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 Ninilchik State #2 Ninilchik Unit 983' FNL & 1134' FWL Sec. 34-T1N-R13W S.M • M MARATHON ~J I~~ ng String - 4.5', 12.6#, L-80, Buttress Mod ng String - 4.5'.12.6#, L-80, Hydril 533!563 r Chemical Injection Nipple @ :2433' MO (Top) 5.930" OD/3.858" ID 8430 psi bursU7500 psi collapse Liner Packer with 15' Tieback Extension @ 5697' MD (Top) Flex-Lock Liner Hanger @ 5725' MD (Top) Marker Joint Top @ 7502' MD (19.83' long) PAC valve @ 8666.59' KB (4' long) Marker Joint Top @ 10,281' MD (19.87' long) Landing Collar @ 11,401' MD (Top) Float Collar @ 11,433' MD (Top) Float Shoe @ 11,500' MD (Bottom) quality is mostly excellent from 11330' KB to the cement top of 8886' w the PAC valve (with ratty to good cement 9800-10055', 9430-9796', ~ )5', and 8886-9010'). Above the PAC valve, the cement is mostly ~t from 8418' to the cement top of 6160' KB (with ratty to good cement S2' and 6244-6740'). Cast Iron Bridge Plug (Top at 8020' KB) Dump Bailed Cement (7980'-8020' KB) AOGCC Witnessed tag top of cement Cast Iron Bridge Plug (Top at 10670' KB) Dum Bailed Cement (10635'-10670' KB) p Top of drilled composite BP at 11,338' KB. J l 7" hole Formation Tops: 20 bbl 10 ppg spacer followed by 280 sks (100.6 bbls) 13.0 ppg 8578' KB cement top from Temp Log Run 6127/2006. Formation Deoth (MD1 Depth (TVD) PAC valve would not open. Beluga _ _ Perfed 8383-8385' (Owen 3-318" 6 spt) to cement above Tyonek 20 bbl 10 ppg spacer followed by 375 sks (135 bbls) 13.0 ppg TD , r . ~ 25 bbls cement returns to surface. TD: 11,500' MD PBTD: 7,980' MD 8,311' TVD 4,828' TVD Conductor 20" K-55 133 ppf PE T~ Bottom M D 0' 126' TVD 0' 126' Surface Casing 9-5/S" 40 ppf L-80 BTC T~ Bottom MD 0' 1614' TVD 0' 1329' 12-114" hole with 405 sks (1 79 bbls) 12 ppg cement with 79 bbls cement to surface. Intermediate Casing 7" 26 ppf L-80 BTC T~ Bottom MD 0' 5935' TVD 0' 3439' 8-112" hole with 265 sks (117.5 bbls) 12.5 ppg Lead + 167 sks (34.8 bbls) 15.8 ppg Tail Bumped plug, 30 bbl spacer + 7 bbls cement to surface, 100 % returns, floats held MD TVD Nei Ft 7426-7443' 4355-0369' 17 ft Owen 3-318", 6 SPF 2/12/2007 7520-7542' 4430-4448' 22 ft Owen 3-318", 6 SPF 2/11!2007 7810-7858' 4676-4718' 48 ft Owen 3-318", 6 SPF 211 012 0 0 7 8058-8070' 4900-4912' 12 ft Owen 3-318", 6 SPF 21212007 8194-8204' 5029-5038' 10 ft Owen 3-318", 6 SPF 21112007 8383-8385' 5209-5211' 2 ft Owen Squeeze Perfs (3-318" 6 SPF 612 812 0 0 6) /~ 10684-10708' 7496-7520' 24 ft Owen 3-3/8", 6 SPF 1/31/2007 ~ Liner (Btm 3307' is Hyd 533, rest is Hyd 563) 4112" 12.6 ppf L-80 Hydril 5331563 TOQ Bottom MD 5697 11500 TVD 3320 8312 Well Name 8 Number: NS-02 Lease: County or Parish: Kenai Peninsula Borough State/Prov: Alaska Country: USA Date Completed: RKB: 21' (GL-148' MSL) Prepared By: Kevin Skiba Last Revision Date: 05/16/07 • C~ Marathon Oil Company Operations Summary Report Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Event Name: ORIGINAL COMPLETION Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date ~ From - To I Hours ~ Code Code I Phase 7/22/2006 09:00 - 09:30 0.50 SAFETY MTG PR1CSG 09:30 - 10:30 1.00 RURD ELEC PR1CSG 10:30 - 11:15 0.75 RUNPU VLVE PR1CSG 11:15-12:15 1.00 RUNPU ELEC PR1CSG 12:15 - 12:45 0.50 REPAIR EQIP PR1 CSG 12:45-16:30 3.75 LOG CSG PR1CSG 16:30 - 17:30 1.00 RUNPU ELEC PR1 CSG 17:30 - 18:30 1.00 RURD ELEC PR1CSG 7/25/2006 13:00 - 13:30 0.50 SAFETY MTG_ PR1 CSG 13:30-18:30 5.00 NUND TREE PR1CSG 8/2/2006 11:30 - 12:00 0.50 SAFETY MTG CMPPRF 12:00 - 17:00 5.00 NUND TREE CMPPRF 9/20/2006 07:30 - 14:00 6.50 RURD COIL CMPPRF 14:00 - 17:30 3.50 RURD COIL CMPPRF 9/21/2006 07:30 - 08:30 1.00 RURD_ COIL CTBG 08:30 - 11:00 2.50 WORK COIL CTBG 11:00 - 11:20 0..33 WORK COIL CTBG 11:20 - 11:30 0.17 WORK COIL CTBG Page 1 of 5 ~ Spud Date: 5/23/2006 Start: 7/22/2006 End: Rig Release: Group: Rig Number: 1 Description of Operations Held PJSM with Expro and MOC personnel to review Safe Work Permit conditions and operational plan. MIRU Expro to run a CBL. Vetco on location to pull BPV. Held another PJSM with Vetco and Expro personnel. Vetco pulled BPV from tubing hanger. Noted a lot of grease on BPV. Well on slight vacuum while pulling the BPV. Finished MU radial bond tools and pulled into lubricator. Took lubricator to wellhead. RIH to 1100' KB and logged free pipe pass. Fluid level estimated at about 60' KB. Continued RIH until wellhead connection on lubricator began to weep. POOH. CBL tool had a small amount of steel filings magnetized to it. Changed out O-ring on lubricator connection and cleaned off filings from CBL. RIH with CBL and tagged softlywith agood pickup at 11,330' KB. Allowed wellhead pressure to increase to 350 psig while RIH without fluid displacement from wellbore. Correlated depth with openhole Array Induction Log. Ran repeat section from 11330 to 11130' KB, Ran main pass from 11,330' KB to 5500' KB. Top of ZXP is at 5697' KB from rig casing run report. POOH with CBL tools. Tools had two 4" x 1/4" thin metal pieces and 4-5 dime-shaped but 3/8" thick metal pieces caught in the centralizer and magnetized to the tool. RDMO Expro. Cement quality is mostly excellent from 11330' KB to the cement top of 8886' KB below the PAC valve (with ratty to good cement 9800-10055', 9430-9796', 9190-9305', and 8886-9010'). Above the PAC valve, the cement is mostly excellent from 8418' to the cement top of 6160' KB (with ratty to good cement 8206-8342' and 6244-6740'). It does not appear that cement remediation is necessary to perforate any of the proposed intervals. Held PJSM and reviewed conditions of Safe Work Permit. Vetco removed companion flange from wing gate valve. Hung SSV and tested wing and SSV to 5000 psi with diesel for 10 min. Bled pressure. Set 4" H BPV in tubing hanger. Hung BPV sign and secured well. Held PJSM and reviewed conditions of Safe Work Permit. Vac truck removed fluid from cellar. Vetco sheared rupture disk on methanol control line at 4800 psig with a test pump. Installed guard on wellhead to cover and protect the control line valve exiting the wellhead. Installed inner and outer annulus lines to gauges on guard. Held PJSM ,discussed operations with personnel. Discussed environmental issues and potential spills around pad. Vetco arrived pulled the BPV with ASRC crane. Spotted up flow back tank, choke, and flow back iron. BJ left lease. ASRC vac truck arrived with fresh water, off loaded into holding tank for pressure testing iron tomorrow. Held PJSM, discussed procedure and uptained safe work permit. PU injector and take to well. load coil with H2O. PT shell, small water leak on connection to coil. Correct leak. PT to 200 psig, low 3500 psig high. Test BOP's to low 200 high 3500 psig. Tested good. Cool down N2. RIH with coil pump N2 at 500 SCFM while running in well. WHP= 0 psig. Returns to tank. PIP= 700 psig. Coil at 1950 CTM, PIP= 776 psig, WHP= 0 psig Printed: 2/20/2007 3:35:00 PM • Marathon Oil Company Operations Summary Report Page 2 of 5 Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Spud Date: 5/23/2006 Event Name: ORIGINAL COMPLETION Start: 7/22/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 i Date From - To Hours Code ~ Code Phase Description of Operations 9/21/2006 11:30 - 12:30 1.00 WORK COIL CTBG ' 12:30 - 12:55 0.42 WORK COIL CTBG 12:55 - 15:00 2.08 WORK COIL CTBG 15:00 - 15:45 I 0.751 WORK I COIL I CTBG 15:45 - 16:30 I 0.751 WORK I COIL I CTBG 16:30 - 16:45 I 0.251 WORK I COIL I CTBG 16:45 - 17:00 ~ 0.251 WORK ~ COIL ~ CTBG 17:00 - 17:45 ~ 0.75 ~ WORKS COIL ~ CTBG 17:45 - 18:00 ~ 0.25 ~ WORK ~ COIL ~ CTBG 18:00 - 18:30 I 0.501 WORK I COIL I CTBG 18:30 - 19:20 I 0.831 WORK I COR I CTBG 19:20 - 19:30 I 0.171 WORK (COIL (CTBG 19:30 - 21:00 I 1.50 I I I CTBG 21:00 - 23:59 2.98 CTBG 2/1/2007 08:00 - 08:30 0.50 RURD_ ELEC WRLN 08:30 - 09:00 0.50 SAFETY MTG_ WRLN 09:00 - 09:20 0.33 WAITON EQIP WRLN 09:20 - 11:30 2.17 RURD_ ELEC WRLN 11:30 - 12:00 0.50 WAITON EQIP WRLN 12:00 - 12:45 0.75 TEST_ BOPE WRLN 12:45 - 14:30 1.75 RUNPU ELEC WRLN 14:30 - 15:20 0.83 PERF TBG_ WRLN 15:20 - 15:40 0.33 RUNPU ELEC WRLN 15:40 - 16:05 0.42 TEST_ BOPE WRLN 16:05 - 17:50 1.75 RUNPU ELEC WRLN 17:50 - 18:05 0.25 LOG 'CSG_ WRLN 18:05 - 18:20 0.25 LOG_ CSG_ WRLN 18:20 - 18:55 0.58 LOG CSG_ WRLN 18:55 - 19:05 0.17 LOG CSG_ WRLN 19:05 - 20:10 1.08 RUNPU ELEC WRLN 20:10 - 21:00 0.83. RURD_ ELEC WRLN 21:00 - 21:15 0.25 RURD_ ELEC WRLN 2/2/2007 08:30 - 09:00 0.50 RURD ELEC WRLN PU coil to 6480', PUW = 11, 500 lbs. Total fluid to tank= 28 bbls. WHP= 0 psig, PIP= 1190 psig. Park coil at 8275', increase N2 rate to 1200 SCFM, PIP= 1350 psig, WHP = 0 psig. good returns to tank. PIP= 2146 psig, WHP= 0 psig. N2 to flow back tank, RIH with coil. Cut N2 rate back to 500 SCFM. Coil at 9000' CTM, PIP= 2134 psig, WHP= 0 psig, N2 total @ 165, 000 SCF. Vac truck pulled 98 bbls out of flow back tank. Increase N2 rate to 1200 SCFM. Returns to flow back tank, RIH at Min N2 rate. CT at 9760' CTM, Park coil increased N2 rate to 1200 SCFM. WHP= 0 psig Fluid returns to flow back tank, cut N2 rate back to 500 SCFM, RIH with coil Coil at 10450', CTM. Park coil inceased N2 rate up to 1200 SCFM. Returns to flow back tank. Cut N2 back to 500 SCFM, RIH with coil. Coil at 11247' CTM, increased N2 up to 750 SCFM. Parked coiI,PIP= 21.19 psig, WHP= 0 psig. PIP= 2340 psig, cut back N2 rate. No returns to flow back tank. Appears like the coil nozzle is plugged. PUH with coil 200' to 10578' CTM. Still no fluid to flow back tank. Open back side line and put 2000 psig on coil. Pressure bled down, pressured up again. PIP went down form 2340 psig to 2140 psig. Bled coil pressure to open top tank. Cut N2 back to 500 SCFM. PUH with coil no change in PIP. POOH with coil. Coil at 6000', returns to flow back tank. Park coif, N2 to flow back. Strapped tank, total of 112.2 bbls in flow back tank. Total returns from well calculated at 171 bbls. Continue OOH with coil. Shut in coil, pump N2 down back side to .pressure up the hole. Coil at surface, pressure up tubing to 2408 psig, shut well in and lay down injector and secured well for night. RD complete. BJ left lease. Plan to move equipment tomorrow. Arrive at NS pad, sign in, obtain work permit Hold PJSM with Expro JSA Wait on sand truck to sand location RU e-line unit wait on manlift and hold explosive safety meeting Arm pert guns, PU lubricator and pressure test to 3000 psig Open well (1920 psig - N2) and start in hole w/ 24' - 3-3/8" pert guns Pulled into position and shot 10682'-10706' correlated to open hole log (1920 psig) no change. POOH (10684'-10708' OH measurement) OOH. Change over to PT tools PU lubricator and Pressure test to 3000 psig Open well (1927 psig - N2) and start w/ PT tools Start down pass to 10850', Fluid level @ 10719' Start 2nd down pass to 10850', Fluid level @ 10719' 15min run Pull up to 10680' and wait and watch for fluid or gas entry Start 3rd down pass. Fluid level @ 10716' POOH, 1960 psig @ surface OOH, shut in well, lay lubricator down (2000 psig on well at surface) Sign out and leave locatoin Arrive @ NS pad, sign in and obtain work permit Printed: 2/20/2007 3:35:00 PM • Marathon Oil Company Operations Summary Report Page 3 of 5 Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Spud Date: 5/23/2006 Event Name: ORIGINAL COMPLETION Start: 7/22/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 i Date From - To Hours ~ Code Code i Phase ~ Description of Operations 12/2/2007 09:00 - 10:00 1.00 SAFETY MTG_ WRLN 10:00 - 13:50 3.83 WAITON ORDR WRLN 13:50 - 14:05 0.25 SAFETY MTG_ WRLN 14:05 - 14:20 0.25 TEST_ BOPE WRLN 14:20 - 15:15 0.92 RUNPU ELEC WRLN 15:15 - 15:20 0.08 RUNPU ELEC WRLN 15:20 - 15:40 0.33 RUNPU ELEC WRLN 15:40 - 16:25 0.75 PERF_ TBG_ WRLN 16:25 - 17:00 0.58 RURD_ ELEC WRLN 17:00 - 17:45 0.75 RURD ELEC WRLN 2/3/2007 07:30 - 08:30 1.00 RURD_ ELEC WRLN 08:30 - 09:00 0.50 SAFETY MTG_ WRLN 09:00 - 09:40 0.67 RURD ELEC WRLN 12/7/2007 12/9/2007 09:40 - 09:55 0.25 TEST_ BOPE WRLN 09:55 - 11:12 1.28 RUNPU ELEC WRLN 11:12 - 11:30 0.30 SHOOT FLVL WRLN 11:30 - 13:25 1.92 WAITON ORDR WRLN 13:25 - 13:57 0.53 RUNPU ELEC WRLN 13:57 - 14:15 0.30 SHOOT FLVL WRLN 14:15 - 15:15 1.00 RUNPU ELEC WRLN 15:15 - 15:40 0.42 RUNPU ELEC WRLN 15:40 - 15:50 0.17 SAFETY MTG_ WRLN 15:50 - 16:05 0.25 TEST_ BOPE WRLN 16:05 - 16:50 0.75 RUNPU ELEC WRLN 16:50 - 16:55 0.08 RUNPU ELEC WRLN 16:55 - 17:35 0.67 PERF_ CSG_ WRLN 17:35 - 18:00 0.42 RUNPU ELEC WRLN 18:00 - 18:30 0.50 RURD_ ELEC WRLN 08:00 - 10:00 2.00 SAFETY MTG_ WRLN .10:00 - 11:00 1.00 RURD_ ELEC WRLN 11:00 - 11:30 0.50 WORK ELEC WRLN 11:30 - 12:00 I 0.501 WORK I ELEC I WRLN 12:00 - 12:45 I 0.751 WORK I ELEC I WRLN 12:45 - 13:40 0.92 WORK~ELEC WRLN 13:40 - 15:00 1.33 RURD_ ELEC WRLN 08:00 - 08:45 0.75 SAFETY MTG_ WRLN 08:45 - 11:30 ~ 2.75 ~ WORK ELEC WRLN 11:30 - 11:40 0.17 WORK ELEC WRLN 11:40 - 12:20 0.67 SETREL PLUG WRLN 12:20 - 13:10 I 0.831 WORK I ELEC I WRLN Hold PJSM with Expro JSA, Discuss STF's, Crane Safety, PressTest Wait on decision to perforate 10' zone. Production roustabouts hammered up flanges on flowline for flowline pressure test. replace alternator on crane while production fixed flowline. Hold explosive safety meeting Pick up 3-3/8" X 10' HSC EXP guns and pressure test to 3000 psig Open well (1390 psig - N2) and start in hole Position gun @ 8182' CCL to shoot 8186'-96' (GRCCL CH correction) coorelated. (8194'-8204' OH) Wait to bleed down well to 1400 psig Shot gun. No apparent change. POOH OOH. Rig down. Sign out and leave location Arrive @ NS pad, sign in and obtain work permit Hold PJSM with Expro JSA, Discuss STF's, Crane Safety, PressTest RU & MU P/T tools and roller bogies. (bleed down well from 1957 psig to 1400 psig SITP) PU P!T tools and lubricator and Pressure test to 3000 psig Open well (1400 psig- gas) and start in the hole Fluid @ 10,014' (1520 psig SITP) Pull up to 8100' and wait on orders from Houston to proceed. Emailed PT log to Clyde Scott and waif on orders to proceed. Pull to 8000' and run a down pass log (1675 psig SITP) Fluid level @ 9979' End down pass. POOH OOH. RU 12' pert gun Hold explosive safety meeting Arm pert gun. PU lubricator and pressure test to 3000 psig RIHwl33/8"X12'HSCEXP guns Bleed well down to 1440 psig SITP Shot gun @ 8050'-8062' GRCCL (CH correction) 8058'-8070' OH. No 'apparent pressure change. POOH 'OOH rig down Sign out and leave location MI spot equipment, held PJSM and discussed logging procedure. PT lubricator to 3000 psig with Methanol. Good test. Open well RIH with logging tools. Well flowing at 65 MCF, 1335 psig. No water. Make down pass at 60' min., found fluid level @ 7140' DIL. Make log continue running down hole with tools. Continue down hole to 10, 800' DIL. No cooling on upper two sets of perforations. lower set shows some gas influx into wellbore at top of inteval. POOH with logging tools. OOH with tools, RD wire line unit. Expro left lease. Held PJSM discussed slick conditions around well head and tripping hazardous. Discussed procedure with personnel. MU 3 1/.8" tool string with Baker setting tool with 3.5" cast iron bridge plug. Go to communication black out on pad. PT lubricator to 3000 psig, good test. Open well up and RIH with plug. Run coreeation log to get on depth with CBL. Locate top of plug at 10670' KBD. Set plug, POOH with Baker setting tool. OOH with setting tool. Lay down tool string. PU additional lubricator Printed: 2/20/2007 3:35:00 PM • • Marathon Oil Company Page 4 of 5 Operations Summary Report Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Spud Date: 5/23/2006 Event Name: ORIGINAL COMPLETION Start: 7/22/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To ~, Hours Code Code Phase ~ Description of Operations 2/9/2007 12:20 - 13:10 0.83 WORK~ELEC WRLN 13:10 - 13:40 0.50 WORK ELEC WRLN 13:40 - 13:55 0.25 DUMPB~I CMT_ WRLN 13:55 - 14:20 0.42 WORK ELEC WRLN 14:20 - 14:55 I 0.581 WORK I ELEC I WRLN 14:55 - 16:30 1.58 DUMPB CMT WRLN 16:30 - 18:40 2.17 WORK ELEC WRLN 18:40 - 19:30 0.83 RURD_ ELEC WRLN 2/10/2007 08:00 - 09:00 1.00 SAFETY MTG WRLN 09:00 - 10:00 1.00 WORK ELEC WRLN 10:00 - 10:15 0.25 WORK ELEC WRLN 10:15 - 11:50 1.581 WORK ELEC WRLN 11:50 - 12:10 I 0.331 SETRELI PLUG I WRLN 12:10 - 13:00 0.83 WORK~ELEC WRLN 13:00 - 13:40 0.67 WORK ELEC WRLN 13:40 - 14:30 0.83 DUMPB CMT_ WRLN 14:30 - 15:10 0.67 WORK ELEC WRLN 15:10 - 15:30 0.33 WORK ELEC WRLN 15:30 - 16:15 0.75 DUMPB CMT_ WRLN 16:15 - 17:00 0.75 WORK ELEC WRLN 17:00 - 18:00 1.00 RURD_ ELEC WRLN 2/11/2007 08:00 - 08:30 0.50 RURD_ ELEC WRLN 08:30 - 08:45 0.25 SAFETY MTG_ WRLN 08:45 - 09:00 0.25 WORK ELEC WRLN 09:00 - 09:25 0.42 SAFETY MTG_ WRLN 09:25 - 09:40 0.25 TEST BOPE WRLN 09:40 - 10:05 0.42 WORK ELEC WRLN 10:05 - 11:40 1.58 WORK ELEC WRLN 11:40 - 11:55 0.25 WORK~ELEC WRLN 11:55 - 12:15 0.33 PERF_ TBG_ WRLN 12:15 - 12:35 0.33 WORK ELEC WRLN 12:35 - 13:30 0.92 PERF TBG WRLN 13:30 - 13:50 0.33 WORK ELEC WRLN 13:50 - 14:35 0.75 WORK ELEC WRLN and 30' X 3" bailer. Mix 10 gals class "G" cement additives. Go to communication back out on pad, arm bailer before loading with cement. Load bailer. Open well. RIH with cement. Dump cement above plug, 10 gals. POOH with bailer. OOH with bailer, open well. Reset bailer. Go to communication black out. Arm bailer, load with 10 gals class "G" cement with additives. PU go to well with cement. Open well. RIH with bailer to top of cement at 10660' KBD. Release bailer of cement. POOH with bailer. Bail cement from 10670' to 10644' KBD. OOH with bailer, lay equipment down for night. Expro left lease. Held PJSM, uptained work permit and discussed procedure. MU 3 1/.8" tool string with Baker setting tool with 3.5" Owen cast iron bridge plug. Go to communication black out on pad before arming setting tool. PT lubricator to 3000 psig, good test. Open well, WHP = 1730 psig. RIH with plug. Tagged top of cement at 10635' KBD. 10' high or 35' cement above plug. PUH with plug. Correlate depth to CBL to veify on depth to set~lug at 8020' KBD. Correct depth. Set plug at 8020' KBD. POOH with Baker setting tool. OOH with setting tool. Lay down setting tool and PU 30' bailer. Go to communication back out on pad to arm bailer before loading with cement. Load bailer. Open well, RIH to dump 1st bailer of class "G" cement & additives. Dump cement above plug, 10 gals. POOH with bailer. OOH with bailer, open well. Arm bailer, load with 10 gals ""G" cement & additives. PU go to well with cement. Open well. RIH with bailer to top of cement at 8030' KBD. Release bailer of class "G" cement & additives. POOH with bailer. Set cement plug from 8020' to 8030' KBD. OOH with bailer, lay equipment down for night. Expro left lease. Arrive @ NS pad, sign in and obtain work permit Discussed PJSM, procedure and envirionmental issues. MU 3 3/8" X 28' HSC perforarting gun. Measured distance from CCL to bottom of gun to tag top of cement. (32') .Hold explosive safety meeting prior to arming gun. PU gun go to well head with gun, pressure test to 3000 psig. Good test. AOGCC arrived to witness tag on cement. Open well, WHP = 1330 psig, RIH with gun number 1. Tag top of cement at 7, 980' KBD, (8') high. PU gun to perforate from. 7830' - 7858' DIL. Correlate CBL to Precision Array induction log dated 6-18-2006. PU gun to position to shoot from 7830' - 7858' DIL. On depth perforate, no change in WHP. POOH with gun. OOH with gun, all shots fired. MU gun run #2, 3 3/8" X 20' gun, No change in well head pressure. PU gun, open well RIH with gun #2, WHP= 1310 psig, confirm on depth with CBL. Perforate from 7810' - 7830' DIL, WHP = 1310 psig. No change in WHP, POOH with gun#2. OOH with gun, Shut in swab valve. Check perforating gun, all shots ~i Printed: 2/20/2007 3:35:00 PM • Marathon Oil Company Operations Summary Report Page 5 of 5 Legal Well Name: NINILCHIK STATE 2 Common Well Name: NINILCHIK STATE 2 Spud Date: 5/23/2006 Event Name: ORIGINAL COMPLETION Start: 7/22/2006 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours ~ Code Code I Phase Description of Operations 2/11/2007 13:50 - 14:35 0.75 WORK ELEC WRLN 14:35 - 15:00 0.42 RURD ELEC WRLN 15:00 - 16:10 1.17 RURD_ ELEC WRLN 2/12/2007 08:00 - 08:30 0.50 RURD_ ELEC WRLN 08:30 - 09:15 0.75 SAFETY MTG WRLN 09:15 - 09:30 0.25 WORK ELEC WRLN 09:30 - 10:25 0.92 WORK ELEC WRLN 10:25 - 11:10 0,75 WORK ELEC WRLN 11:10 - 12:00 2/13/2007 09:00 - 09:30 09:30 - 11:20 0.83 RURD_ ELEC WRLN 0.50 RURD_ ELEC WRLN 1.83 SAFETY MTG WRLN 11:20 - 11:55 11:55 - 13:00 13:00 - 13:55 13:55 - 14:05 14:20 - 15:00 15:00- 15:35 0.581 RURD I ELEC I WRLN 1.08 RUNPU ELEC WRLN 0.92 RUNPU ELEC WRLN 0.17 RUNPU ELEC WRLN 0.67 WRLN 0.58 RUNPU ELEC WRLN 15:35 - 16:30 I 0.921 RURD I ELEC I WRLN fired. Lay lubricator down for night. Open well to production to test over night. WHP= 819 psig, O MCFPD with no water to production. Sign out and leave location Arrive @ NS pad, sign in and obtain work permit Discussed PJSM, procedure and envirionmental issues. Hold explosive safety meeting. MU 3 3/8", 6 spf, 60 Deg phased X 22' HSC perforating gun. Distance from CCL to top shot is T. Open well, WHP = 820 psig, RIH with gun number 1. Position gun to perforate from 7520' - 7542' DIL. Perforate and log of~ POH. No response to perforating Secure location, sign out and leave location Arrive @ NS pad, sign in and obtain work permit Discussed PJSM, procedure and envirionmental issues. Hold explosive safety meeting. Shut down crew working on location for gun arming. MU 3 3/8", 6 spf, 60 Deg phased X 17' HSC perforating gun. Distance from CCL to top shot is T. ~ ~~' Open well, WHP = 820 psig, RIH with gun number 1. Position gun to perforate from 7426' - 7443' DIL. Gun misfired. POH ~~ LD misfired gun and PU 2nd gun. Stab on well and P test to 3000 psi. Open well, WHP = 820 psig, RIH with gun number 1. Position gun to perforate from 7426' - 7443' DIL. Perforate and log off. POH. No response to perforating Rig down eline unit and release., sign out and leave location Printed: 2/20/2007 3:35:00 PM • ®~.~ Company: Marathon Oil Company Job Number: Field: Ninilchik Magnetic Decl.: Borough Kenai Peninsula Grid Corr.: tNTEQ Well Name: NS#2 Total Survey Corr.: Rig: Glacier#1 Target Info: 1143097 Calculation Method: 19.33° Proposed Azimuth: n/a Depth Reference: 19.33° Tie Into: Surface Minimum Curvature 251.54° RKB M MARATHON No. Tool Type Survey Depth (ft) Incl (°) Azimuth (° Course Lgth (ft) TVD (ft) VS (ft) Coord N/S (ft inates E/W (ft) Closure Dist ft An (°) DLS (°/100') Build Rate (°/100') Walk Rate (°/100') Tool Face 1 Tie in 0 0.0 0.0 0.00 0.00 0.00 N 0.00 E 2 MWD 140 0.8 347.7 140 140.00 -0.10 0.95 N 0.21 W 0.98 347.70 0.57 0.57 248.36 3 MWD 201 3.1 270.5 61 200.96 1.41 1.39 N 1.95 W 2.39 305.41 4.96 3.77 -126.56 92 L 4 MWD 262 7.2 259.3 61 261.70 6.76 0.69 N 7.36 W 7.39 275.36 6.89 6.72 -18.36 19 L 5 MWD 320 1.1.1 256.2 58 318.96 15.93 1.32 S 16.35 W 16.41 265.39 6.78 6.72 -5.34 9 L 6 MWD 382 13.9 255.1 62 379.48 29.31 4.66 S 29.35 W 29.72 260.98 4.53 4.52 -1.77 5 L 7 MWD 442 15.2 252.0 60 437.56 44.37 8.94 S 43.79 W 44.70 258.46 2.52 2.17 -5.17 32 L 8 MWD 501 16.8 251.8 59 494.27 60.63 13.99 S 59.25 W 60.88 256.71 2.71 2.71 -0.34 2 L 9 MWD 561 18.6 251.4 60 551.43 78.87 19.76 S 76.56 W 79.07 255.53 3.01 3.00 -0.67 4 L 10 MWD 624 21.6 251.7 63 610.58 100.52 26.60 S 97.10 W 100.67 254.68 4.76 4.76 0.48 2 R 11 MWD 682 24.9 252.8 58 663.86 123.41 33.57 S 118.90 W 123.55 254.24 5.74 5.69 1.90 8 R 12 MWD 738 25.1 253.0 56 714.62 147.07 40.53 S 141.52 W 147.21 254.02 0.39 0.36 0.36 23 R 13 MWD 808 25.4 252.3 70 777.93 176.93 49.43 S 170.02 W 177.06 253.79 0.60- 0.43 -1.00 45 L 14 MWD 872 28.1 250.6 64 835.08 205.73 58.61 S 197.32 W 205.84 253.46 4.38 4.22 -2.66 17 L 15 MWD 935 30..9 249.9 63 889.90 236.74 69.10 S 226.51 W 236.82 253.03 4.48 4.44 -1.11 0 L 16 MWD 998 33.5 250.8 63 943.21 270.30 80.38 S 258.13 W 270.35 252.70 4.20 4.13 1.43 11 R 17 MWD 1061 36.6 251.9 63 994.78 306.47 91.94 S 292.41 W 306.52 252.55 5.02 4.92 1.75 12 R 18 MWD 1124 40.2 252.6 63 1044.14 345.59 103.86 S 329.67 W 345.64 252.51 5.76 5.71 1.11 7 R 19 MWD 1187 43.8 252.0 63 1090.95 387.74 116.68 S 369.82 W 387.79 252.49 5.75 5.71 -0.95 7 L 20 MWD 1250 47.3 252.2 63 1135.06 432.70 130.50 S 412.61 W 432.76 252.45 5.56 5.56 0.32 2 R 21 MWD 1313 51.3 250.8 63 1176.14 480.45 145.66 S 457.89 W 480.50 252.35 6.57 6.35 -2.22 15 L 22 MWD 1376 55.2 249.5 63 1213.83 530.91 162.81 S 505.36 W 530.94 252.14 6.41 6.19 -2.06 15 L 23 MWD 1439 60.3 249.8 63 1247.43 584.14 181.33 S 555.30 W 584.15 251.92 8.11 8.10 0.48 3 R 24 MWD 1501 63.7 250.1 62 1276.54 638.85 200.10 S 606.71 W 638.86 251.75 5.50 5.48 0.48 5 R 25 MWD 1560 62.2 250.1 59 1303.37 691.38 217.98 S 656.12 W 691.38 251.62 2.54 -2.54 0.00 180 L 26 MWD 1629 61.3 250.4 69 1336.03 752.15 238.52 S 713.33 W 752.15 251.51 1.36 -1.30 0.43 164 R 27 MWD 1692 61.0 250.2 63 1366.43 807.32 257.12 S 765.28 W 807.32 251.43 0.55 -0.48 -0.32 150 L 28 MWD 1755 61.7 250.2 63 1396.63 862.59 275.85 S 817.29 W 862.59 251.35 1.11 1.11 0.00 0 L 29 MWD 1818 62.6. 250.5 63 1426.06 918.28 294.58 S 869.75 W 918.29 251.29 1.49 1.43 0.48 16 R 30 MWD 1945 62.0 250.5 127 1485.10 1030.70 332.11 S 975.75 W 1030.72 251.20 0.47 -0.47 0.00 180 L 31 MWD 2070 61.4 250.7 125 1544.36 1140.75 368.67 S 1079.56 W 1140.77 251.14 0.50 -0.48 0.16 164 R 32 MWD 2196 60.9 250.3 126 1605.15 1251.09 405.51 S 1183.59 W 1251.13 251.09 0.48 -0.40 -0.32 145 L 33 MWD 2321 60.7 250.7 125 1666.14 1360.19 441.93 S 1286.45 W 1360.24 251.04 0.32 -0.16 0.32 120 R 1 of 5 • • /Gitf~ INTEQ Company: Marathon Oil Company Field: Ninilchik Borough Kenai Peninsula Well Name: NS#2 Rig: Glacier#1 Job Number: 1143097 Calculation Method: Minimum Curvature Magnetic Decl.: 19.33° Proposed Azimuth: 251.54° Grid Corr.: n/a Depth Reference: RKB Total Survey Corr.: 19.33° Tie Into: Surface MARATHON Target Info: No. Toot Type Survey Depth (ft) Incl (°) Azimuth (°) Course Lgth (ft) TVD (ft VS (ft) Coord N/S (ft) inates E/W (ft) Closure Dist (ft Ang (°) DLS °/100') Baud Rate (°/100' Watk Rate (°/100') Tool Face 34 MWD 2448 60.0 250.1 127 1728.96 1470.54 478.96 S 1390.42 W 1470.60 250.99 0.69 -0.55 -0.47 143 L 35 MWD 2573 61.2 251.4 125 1790.33 1579.42 514.85 S 1493.23 W 1579.50 250.98 1.32 0.96 1.04 44 R 36 MWD 2698 60.5 250.6 125 1851.22 1688.58 550.39 S 1596.45 W 1688.66 250.98 0.79 -0.56 -0.64 135 L 37 MWD 2824 59.9 250.4 126 1913.83 1797.90 586.89 S 1699.52 W 1798.00 250.95 0.50 -0.48 -0.16 164 L 38 MWD 2950 61.1 253.7 126 1975.89 1907.54 620.66 S 1803.83 W 1907.62 251.01 2.47 0.95 2.62 6$ R 39 MWD 3076 60.0 252.9 126 2037.84 2017.20 652.18 S 1908.92 W 2017.25 251.14 1.03 -0.87 -0.63 148 L 40 MWD 3203 61.1 252.4 127 2100.28 2127.77 685.16 S 2014.47 W 2127.80 251.22 0.93 0.87 -0.39 22 L 41 MWD 3328 61.2 253.1 125 2160.60 2237.23 717.63 S 2119.03 W 2237.25 251.29 0.50 0.08 0.56 81 R 42 MWD 3454 61.1 253.1 126 2221.39 2347.55 749.71 S 2224.63 W 2347.56 251.38 0.08 -0.08 0.00 180 L 43 MWD 3580 61.0 252.9 126 2282.38 2457.77 781.95 S 2330.06 W 2457.77 251.45 0.16 -0.08 -0.16 120 L 44 MWD 3705 60.9 253.8 125 2343.08 2566.99 813.26 S 2434.76 W 2566.99 251.53 0.63 -0.08 0.72 97 R 45 MWD 3830 60.7 253.3 125 2404.06 2676.03 844.16 S 2539.40 W 2676.04 251.61 0.38 -0.16 -0.40 115 L 46 MWD 3955 60.0 253.8 125 2465.90 2784.60 874.92 S 2643.59 W 2784.61 251.69 0.66 -0.56 0.40 148 R 47 MWD 4079 59.8 252.9 124 2528.09 2891.82 905.66 S 2746.37 W 2891.84 251.75 0.65 -0.16 -0.73 105 L 48 MWD 4204 61.3 251.7 125 2589.55 3000.65 938.76 S 2850.06 W 3000.68 251.77 1.46 1.20 -0.96 35 L 49 MWD 4329 60.7 251.2 125 2650.15 3109.98 973.53 S 2953.70 W 3110.00 251.76 0.59 -0.48 -0.40 144 L 50 MWD 4453 60.4 251.2 124 2711.11 3217.96 1008.33 S 3055.92 W 3217.98 251.74 0.24 -0.24 0.00 180 L 51 MWD 4578 60.1 251.2 125 2773.14 3326.48 1043.31 S 3158.65 W 3326.50 251.72 0.24 -0.24 0.00 180 L 52 MWD 4703 61.6 250.4 125 2834.03 3435.63 1079.21 S 3261.74 W 3435.65 251.69 1.32 1.20 -0.64 25 L 53 MWD 4829 61.2 250.6 126 2894.34 3546.24 1116.14 S 3366.02 W 3546.25 251.66 0.35 -0.32 0.16 156 R 54 MWD 4952 60.9 251.1 123 2953.88 3653.86 1151.45 S 3467.70 W 3653.87 251.63 0.43 -0.24 0.41 125 R 55 MWD 5076 60.7 250.3 124 3014.38 3762.09 1187.22 S 3569.86 W 3762.10 251.60 0.59 -0.16 -0.65 106 L 56 MWD 5200 60.0 249.7 124 3075.72 3869.82 1224.08 S 3671.12 W 3869.82 251.56 0.70 -0.56 -0.48 143 L 57 MWD 5325 61.3 250.8 125 3136.99 3978.74 1260.89 S 3773.66 W 3978.74 251.52 1.29 1.04 0.88 37 R 58 MWD 5449 60.8 251.1 124 3197.01 4087.24 1296.30 S 3876.23 W 4087.24 251.51 0.46 -0.40 0.24 152 R 59 MWD 5572 60.2 250.5 123 3257.58 4194.28 1331.51 S 3977.32 W 4194.28 251.49 0.65 -0.49 -0.49 139 L 60 MWD 5697 60.0 249.9 125 3319.89 4302.61 1368.21 S 4079.28 W 4302.62 251.46 0.45 -0.16 -0.48 111 L 61 MWD 5821 60.2 250.1 124 3381.70 4410.07 1404.98 S 4180.29 W 4410.08 251.42 0.21 0.16 0:16 41 R 62 MWD 5882 60.0 249.8 61 3412.11 4462.93 1423.11 S 4229.97 W 4462.94 251.41 0.54 -0.33 -0.49 128 L 63 MWD 6010 59.4 251.3 128 3476.69 4573.42 1459.91 S 4334.17 W 4573.44 251.38 1.12 -0.47 1.17 115 R 64 MWD 6072 58.9 249.3 62 3508.49 4626.64 1477.85 S 4384.28 W 4626.65 251.37 2.88 -0.81 -3.23 107 L 65 MWD 6136 59.3 249.5 64 3541.35 4681.51 1497.17 S 4435.68 W 4681.54 251.35 0.68 0.62 0.31 23 R 66 MWD 6199 58.9 248.7 63 3573.71 4735.52 1516.45 S 4486.18 W 4735.55 251.32 1.26 -0.63 -1.27 120 L 2 of 5 • • ~/w.~ Company: Marathon Oil Company s~ Field: Ninilchik Borough Kenai Peninsula iN'CFQ Well Name: NS#2 Ria: Glacier#1 Job Number: 1143097 Magnetic Decl.: 19.33° Grid Corr.: n/a Total Survey Corr.: 19.33° Target Info: Calculation Method: Minimum Curvature Proposed Azimuth: 251.54° Depth Reference: RKB Tie Into: Surface MARATHON No. Took Type Survey Depth (ft) Incl (°) Azimuth (°) Course Lgth (ft) TVD (ft) VS ft) Coord N/S (ft) inates E/W ft Closure Dist (ft) Ang (°) DLS (°/100') Build Rate (°/100') Walk Rate (°/100') Tool Face 67 MWD 6250 59.1 248.9 51 3599.97 4779.19 1532.26 S 4526.94 W 4779.23 251.30 0.52 0.39 0.39 41 R 68 MWD 6324 57.1 248.2 74 3639.08 4841.92 1555.23 S 4585.41 W 4841.98 251.26 2.82 -2.70 -0.95 164 L 69 MWD 6386 57.2 248.8 62 3672.71 4893.94 1574.32 S 4633.87 W 4894.00 251.24 0.83 0.16 0.97 79 R 70 MWD 6450 55.5 248.6 64 3708.17 4947.14 1593.67 S 4683.51 W 4947.22 251.21 2.67 -2.66 -0.31 174 L 71 MWD 6512 56.0 251.6 62 3743.07 4998.37 1611.11 S 4731.69 W 4998.45 251.20 4.08 0.81 4.84 79 R 72 MWD 6575 55.9 248.6 63 3778.35 5050.54 1628.87 S 4780.76 W 5050.63 251.19 3.95 -0.16 -4.76 93 L 73 MWD 6638 54.4 247.7 63 3814.35 5102.15 1648.11 S 4828.75 W 5102.26 251.15 2.65 -2.38 -1.43 154 L 74 MWD 6701 53.1 248.6 63 3851.60 5152.86 1667.02 S 4875.90 W 5153.00 251.12 2.36 -2.06 1.43 151 R 75 MWD 6764 51.4 249.8 63 3890.17 5202.63 1684.71 S 4922.46 W 5202.78 251.11 3.09 -2.70 1.90 151 R 76 MWD 6827 49.8 249.9 63 3930.16 5251.29 1701.48 S 4968.16 W 5251.45 251.09 2.54 -2.54 0.16 177 R 77 MWD 6891 49.4 249.4 64 3971.64 5300.00 1718.43 S 5013.86 W 5300.17 251.08 0.86 -0.62 -0.78 137 L 78 MWD 6953 47.0 251.2 62 4012.96 5346.20 1734.02 S 5057.36 W 5346.38 251.07 4.43 -3.87 2.90 151 R 79 MWD 7017 47.2 250.0 64 4056.53 5393.08 1749.60 S 5101.58 W 5393.26 251.07 1.41 0.31 -1.87 78 L 80 MWD 7080 45.8 251.5 63 4099.89 5438.77 1764.67 S 5144.72 W 5438.95 251.07 2.81 -2.22 2.38 143 R 81 MWD 7142 45.0 250.7 62 4143.43 5482.91 1778.96 S 5186.48 W 5483.10 251.07 1.58 -1.29 -1.29 145 L 82 MWD 7205 43.2 250.9 63 4188.67 5526.75 1793.38 S 5227.89 W 5526.94 251.07 2.87 -2.86 0.32 176 R 83 MWD 7269 42.8 251.4 64 4235.47 5570.40 1807.49 S 5269.19 W 5570.58 251.07 0.82 -0.63 0.78 140 R 84 MWD 7332 40.5 252.9 63 4282.55 5612.26 1820.33 S 5309.04 W 5612.44 251.07 3.98 -3.65 2.38 157 R 85 MWD 7394 39.1 252.4 62 4330.18 5651.94 1832.16 S 5346.92 W 5652.11 251.09 2.32 -2.26 -0.81 167 L 86 MWD 7458 37.4 253.2 64 4380.44 5691.55 1843.88 S 5384.76 W 5691.71 251.10 2.77 -2.66 1.25 164 R 87 MWD 7520 36.4 252.7 62 4430.02 5728.76 1854.80 S 5420.35 W 5728.92 251.11 1.68 -1.61 -0.81 163 L 88 MWD 7584 34.0 254.0 64 4482.31 5765.63 1865.38 S 5455.69 W 5765.78 251.12 3.93 -3.75 2.03 163 R 89 MWD 7646 32.5 252.6 62 4534.16 5799.60 1875.14 S 5488.25 W 5799.74 251.14 2.72 -2.42 -2.26 153 L 90 MWD 7709 30.9 256.2 63 4587.77 5832.65 1884.06 S 5520.12 W 5832.78 251.15 3.93 -2.54 5.71 132 R 91 MWD 7773 29.6 256.4 64 4643.05 5864.78 1891.69 S 5551.44 W 5864.89 251.18 2.04 -2.03 0.31 176 R 92 MWD 7835 27.7 256.0 62 4697.46 5894.41 1898.78 S 5580.31 W 5894.51 251.21 3.08 -3.06 -0.65 174 L 93 MWD 7898 26.2 256.0 63 4753.61 5922.87 1905.69 S 5608.01 W 5922.96 251.23 2.38 -2.38 0.00 180 L 94 MWD 7961 23.9 255.4 63 4810.68 5949.48. 1912.27 S 5633.86 W 5949.55 251.25 3.67 -3.65 -0.95 174 L 95 MWD 8024 22.1 254.6 63 4868.67 5974.05 1918.64 S 5657.63 W 5974.11 251.27 2.90 -2.86 -1.27 171 L 96 MWD 8087 19.7 254.8 63 4927.52 5996.48 1924.57 S 5679.31 W 5996.54 251.28 3.81 -3.81 0.32 178 R 97 MWD 8150 18.9 251.1 63 4986.99 6017.29 1930.66 S 5699.21 W 6017.35 251.29 2.32 -1.27 -5.87 125 L 98 MWD 8214 19.5 253.0 64 5047.43 6038.33 1937.14 S 5719.23 W 6038.39 251.29 1.35 0.94 2.97 47 R 99 MWD 8277 17.1 254.3 63 5107.24 6058.10 1942.72 S 5738.21 W 6058.15 251.30 3.86 -3.81 2.06 171 R 3 of 5 i ~lAr Company: Marathon Oil Company Field: Ninilchik Borough Kenai Peninsula tN1'EQ Well Name: NS#2 Ria: Glacier#1 Job Number: Magnetic Decl.: Grid Corr.: Total Survey Corr.: Target Info: 1143097 Calculation Method: 19.33° Proposed Azimuth: n/a Depth Reference: 19.33° Tie Into: Surface Minimum Curvature 251.54° RKB M MARATHON No. Tool Type Survey Depth (ft) InclJ (°) Azimuth (°) Course Lgth (ft TVD (ft) VS (ft) Coordinates N/S ft) Et'V11(ft) Closure Dist ft Ang (°) DLS (°/100') Build Rate (°l100') Walk Rate (°/100') Tool Face 100 MWD 8339 15.9 255.4 62 5166.68 6075.68 1947.33 S 5755.20 W 6075.73 251.31 2.00 -1.94 1.77 166 R 101 MWD 8402 15.8 252.4 63 5227.29 6092.86 1952.10 S 5771.73 W 6092.91 251.31 1.31 -0.16 -4.76. 98 L 102 MWD 8465 13.7 250.7 63 5288.21 6108.90 1957.16 S 5786.95 W 6108.95 251.31 3.40 -3.33 -2.70 169 L 103 MWD 8528 13.2 254.3 63 5349.48 6123.55 1961.57 S 5800.91 W 6123.59 251.32 1.55 -0.79 5.71 123 R 104 MWD 8591 13.1 253.4 63 5410.83 6137.87 1965.55 S 5814.68 W 6137.91 251.32 0.36 -0.16 -1.43 116 L 105 MWD 8654 11.1 254.1 63 5472.43 6151.06 1969.26 S 5827.36 W 6151.10 251.33 3.18 -3.17 1.11 176 R 106 MWD 8716 9.9 254.6 62 5533.39 6162.35 1972.31 S 5838.24 W 6162.38 251.33 1.94 -1.94 0.81. 176 R 107 MWD 8778 9.8 254.7 62 5594.47 6172.94 1975.11 S 5848.46 W 6172.97 251.34 0.16 -0.16 0.16 170 R 108 MWD 8841 8.6 254.5 63 5656.66 6183.00 1977.79 S 5858.17 W 6183.03 251.34 1.91 -1.90 -0.32 179 L 109 MWD 8904 7.9 253.0 63 5719.01 6192.03 1980.31 S 5866.85 W 6192.06 251.35 1.16 -1.11 -2.38. 164 L 110 MWD 8967 82 255.6 63 5781.39 6200.84 1982.70 S 5875.35 W 6200.87 251.35 0.75 0.48 4.13 52 R 111 MWD 9031 7.1 261.6 64 5844.82 6209:28 1984.41 S 5883.68 W 6209.31 251.36 2.12 -1.72 9.38 147 R 112 MWD 9094 6.6 271.1 63 5907.37 6216.53 1984.91 S 5891.15 W 6216.55 251.38 1.96 -0.79 15.08 118 R 113 MWD 9157 6.0 258.5 63 5969.99 6223.21 1985.49 S 5898.00 W 6223.23 251.39 2.39 -0.95 -20.00 120 L 114 MWD 9220 5.2 264.0 63 6032.69 6229.27 1986.45 S 5904.06 W 6229.28 251.40 1.53 -1.27 8.73 149 R 115 MWD 9283 4.1 263.2 63 6095.48 6234.26 1987.01 S 5909.14 W 6234.27 251.41 1.75 -1.75 -1.27 177 L 116 MWD 9346 2.2 260.9 63 6158.39 6237.66 1987.47 S 5912.57 W 6237.67 251.42 3.02 -3.02 -3.65 177 L 117 MWD 9472 0.7 286.4 126 6284.34 6240.68 1987.64 S 5915.70 W 6240.69 251.43 1.27 -1.19 20.24 169 R 118 MWD 9597 0.7 220.2 125 6409.34 6241.96 1988.01 S 5916.92 W 6241.97 251.43 0.61 0.00 -52.96 123 L 119 MWD 9722 0.9 199.3 125 6534.32 6243.21 1989.52 S 5917.74 W 6243.22 251.42 0.28 0.16 -16.72 66 L 120 MWD 9846 0.6 195.0 124 6658.31 6244.16 1991.06 S 5918.23 W 6244.18 251.41 0.25 -0.24 -3.47 172 L 121 MWD 9973 0.3 201.1 127 6785.31 6244.74 1992.01 S 5918.52 W 6244.76 251.40 0.24 -0.24 4.80 174 R 122 MWD 10096 02 182.5 123 6908.31 6245.02 1992.53 S 5918.65 W 6245.04 251.39 0.10 -0.08 -15.12 150 L 123 MWD 10222 0.7 103.9 126 7034.30 6244.45 1992.93 S 5917.91 W 6244.47 251.39 0.55 0.40 -62.38 95 L 124 MWD 10346 0.9 65.8 124 7158.29 6242.84 1992.72 S 5916.29 W 6242.86 251.39 0.45 0.16 -30.73 89 L 125 MWD 10471 1.1 66.2 125 7283.27 6240.67 1991.83 S 5914.29 W 6240.69 251.39 0.16 0.16 0.32 2 R 126 MWD 10596 0.8 63.8 125 7408.26 6238.61 1990.96 S 5912.41 W 6238.63 251.39 0.24 -0.24 -1.92 174 L 127 MWD 10721 1.2 40.3 125 7533.24 6236.63 1989.58 S 5910.78 W 6236.65 251.40 0.45 0.32 -18.80 58 L 128 MWD 10845 1.5 56.0 124 7657.20 6233.95 1987.68 S 5908.60 W 6233.97 251.41 0.38 0.24 12.66 59 R 129 MWD 10969 1.7 69.3 124 7781.16 6230.55 1986.12 S 5905.53 W 6230.57 251.41 0.34 0.16 10.73 68 R 130 MWD 11094 2.4 58.9 125 7906.08 6226.15 1984.11 S 5901.56 W 6226.16 251.42 0.63 0.56 -8.32 33 L 131 MWD 11219 3.1 59.4 125 8030.93 6220.29 1981.04 S 5896.41 W 6220.30 251.43 0.56 0.56 0.40 2 R 132 MWD 11343 2.9 67.3 124 8154.76 6213.88 1978.12 S 5890.63 W 6213.89 251.44 0.37 -0.16 6.37 120 R 4of5 ®GiM Company: Marathon Oil Company Field: Ninilchik Borough Kenai Peninsula iNT>c~ Well Name: NS#2 Ria: Glacier#1 Job Number: Magnetic Decl.: Grid Corr.: Total Survey Corr.: Target Info: 1143097 Calculation Method: 19.33° Proposed Azimuth: n/a Depth Reference: 19.33° Tie Into: Surface Minimum Curvature 251.54° RKB M MARATHON No. Tooi Type Survey Depth (ft) Incl (°) Azimuth (°) Course Lgth (ft) TVD (ft VS (ft) Coord N/S (ft) inates E/W (ft) Closure Dist ft) Ang (°) DLS (°/100') suiid Rate (°/100') Walk Rate °/100') Tool. Face 133 MWD 11453 2.8 73.2 110 8264.63 6208.42 1976.27 S 5885.49 W 6208.43 251.44 0.28 -0.09 5.36 112 R Projection 11500 2.8 73.2 47 8311.57 6206.13 1975.61 S 5883.29 W 6206.14 251.44 0.00 0.00 0.00 5of5 ------- Original Message -------- Subject:RE: Ninilchik State #2 (206-066): Request for Verbal Approval to P&A Tyonek Intervals Date:Fri, 09 Feb 2007 20:08:48 -0600 From:Cissell, Wayne E. <wecissell@marathonoil.com> To:Ibele, Lyndon <lcibele@marathonoil.com>, Thomas Maunder <tom maunder@admin.state.ak.us> CC:Donovan Jr, Dennis M. <ddonovan@marathonoil.com>, Skiba, Kevin J. <kskiba@marathonoil.com>, Walsh, Ken <kdwalsh@marathonoil.com> 1 of 3 FYI, we completed setting of the lower plug at 10670' and tagged the top of cement at 10635'. The upper cast iron bridge plug was set at 8020' and have dumped bailed up to 25' of cement above the plug per Marathon's request. I plan to contact Lou and give him the opportunity to witness the top of cement tag tomorrow before we perforate up hole in NS#2. Thanks, Wayne -----Original Message----- From: Thomas Maunder [rlailto:tom maunder~~~admir_.state.a}c.:~s] Sent: Wednesday, February 09, 2007 4:26 PM To: Walsh, Ken Cc: Ibele, Lyndon; Cissell, Wayne E.; Donovan Jr, Dennis M.; Skiba, Kevin J. Subject: Re: Ninilchik State #2 (206-066): Request for Verbal Approval to P&A Tyonek Intervals Lyndon, Continuing to work is not a problem with Lou as needed. Tom Maunder, PE AOGCC I am sure Wayne will stay in touch -----Original Message----- From: Ibele, Lyndon Sent: Friday, February 09, 2007 3:54 PM To: Thomas Maunder Cc: Cissell, Wayne E.; Donovan Jr, Dennis M.; Skiba, Kevin J.; Walsh, Ken Subject: RE: Ninilchik State #2 (206-066): Request for Verbal Approval to P&A Tyonek Intervals Tom-- As of this afternoon, it is Marathon's intent to finish perforating work on this well before the drilling rig moves onto the adjacent new well location (NS-5) We will be continuing the plugback operations through the weekend, because the rig will be ready to move as early as Tuesday, 2/13. We may hold off the rig to allow us sufficient time to finish the perforating work, but wish to minimize the rig waiting time for obvious reasons. Wayne Cissell will be in touch with Lou over the weekend ~~ ~~ ~C- S/22/2007 7:14 AM regarding witness of tag runs, as required. -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Wednesday, February 07, 2007 3:01 PM To: Walsh, Ken Cc: Ibele, Lyndon; Cissell, Wayne E.; Donovan Jr, Dennis M.; Skiba, Kevin J. Subject: Re: Ninilchik State #2 (206-066): Request for Verbal Approval to P&A Tyonek Intervals Ken, The proposed plugs you plan to set are appropriate and by copy of this email are accepted. It is understood that further work will be delayed until the rig has finished work on the new well. Although future work is planned for this well, it is appropriate to submit the 407 completion report within 30 days of completing the plugging covered in this message. Call or message with any questions. Tom Maunder, PE AOGCC Walsh, Ken wrote, On 2/7/2007 12:33 PM: Mr. Maunder, Marathon Oil requests verbal approval to P&A three separate Tyonek intervals currently in the Ninilchik State #2 well (Drilling Permit number 206-066). Please find attached an electronic copy of the wellbore diagram for the well in its current state. The three intervals to be isolated are as follows: 1. 10684-10708' MD (7496-7520' TVD) - Interval perforated 30% underbalanced but flow tested for uneconomic gas flow due to low permeability. 2. 8194-8204' MD (5029-5038' TVD) - Logged pressure-temperature and determined making 1000 produced water. 3. 8058-8070' MD (4900-4912' TVD) - Logged pressure-temperature and determined very low perm with no gas entry and small produced water entry. Marathon proposes to set a cast iron bridge plug at 10,670' MD and dump bail a minimum of 25' of cement on top of the bridge plug to isolate the perforations at 10,684-10708' MD. we would like to plan to start this work tomorrow morning, February 8, 2007. Following this work and once the cement has had sufficient time to harden, Marathon would tag the top of the cement plug to verify the plug length. Marathon would give 24 notice to the AOGCC to allow the agency to witness the cement top verification in the field. Marathon then proposes to set a cast iron bridge plug at 8020' MD and dump bail a minimum of 25' of cement on top of this bridge plug. This bridge plug and cement would isolate the other two non-gas productive Tyonek intervals, 8194-8204' and 8058-8070' MD, in the wellbore. Again, Marathon would give proper notification to the AOGCC to witness the tag at the top of the dump-bailed cement. Marathon is currently planning to move in a drilling rig to drill a new well on the same production pad that contains this well. Due to safety considerations related to the close proximity of the drilling rig equipment, Marathon does not anticipate that operations to add additional perforations uphole in the Ninilchik State #2 well would begin again until the drilling rig has moved off after drilling and casing the new well on this pad. 2 of 3 5/22/2007 7:14 AM • • As per our telephone conversation on Monday, February 5, 2007, it was agreed and understood that Marathon would request this verbal approval to properly plug back these intervals in the Ninilchik State #2. We agreed that Marathon would defer sending in the 10-403 follow-up request, documenting this verbal approval, until the three uphole Tyonek intervals (7426-7858' MD gross) had been perforated and tested. Should any of these additional uphole intervals be non-commercial and require a similar isolation, then Marathon would ask for another verbal approval from the AOGCC to perform the isolation(s). The purpose of this approach would be to minimize the amount of paperwork, in particular the number of follow-up 10-403 forms, sent to the AOGCC to perforate and test the Tyonek intervals in the Ninilchik State #2 wellbore. Please send your verbal approval via email to kdwalsh@marathonoil.com at your earliest convenience. Regards, Ken Ken D. Walsh Senior Production Engineer Marathon Oil Company-Alaska Asset Team 907-283-1311 (office) 907-394-3060 (cell) «NS #2 WBD 2 7 2007.x1s» 3 of 3 5/22/2007 7:14 AM M Marathon MARATHON Oil Company Alaska Asset Team Northern Business Unit P.O. Box 3128 Houston, TX 77253 Telephone 713-296-2384 Fax 713-499-8504 July 20, 2006 Alaska Oil & Gas Conservation Commission Attn: Howard Oakland 333 W. 7~` Avenue, Suite 100 Anchorage, AK 99501 CERTIFIED MAIL RECEIVED AUG I 1 2006 RE: Marathon Ninilchik State #2 CONFIDENTIAL Dear Mr. Oakland: Alaska Oil & Gas Cons. Commission Anchorage The following confidential digital well data are enclosed for the above referenced well. NS #2 As-Built Plat ............................................................................................................ Daily Drilling Reports .............................................................................................. Directional Survey ................................................................................................... EPOCH Mud Log Data ............................................................................................ Precision/Weatherford Well Log Data ..................................................................... One CD containing digital well logs and above data (directory list below) ..........:.. Name.. I TYPe < 1 ~f45~5_50-1332056000 R2~btted.dpk Precision Data Padca~ ~_]NS 2_Dri&ig Report.x~ NicrosOftF~ccel Worksheet _Jns2_mudog fruN.las LAS File ~NS2 preim mudog.las LAS Fie ~:) 3489034 TVD M~-i.las LAS Fie 3489034-R~eat.las LAS Fie -_-~ 3489034-Main.las LAS Fie ~N52_~ ~ aogcc.dat DATFde N52 MUDLOG ND.pdf Adobe Acrobat 7.0 Dowmerrt +N52_WRIDLOG MD.pdf Adobe Acrobat 7.0 Dowment .....digital .....digital .....digital .....digital .....digital .....digital Please indicate your receipt of this data by signing below and Bing to me at 713-499-8504. Thank you, Kaynell Zeman Geological Technician Enclosures Received by: ~~ t i5 Itie ~ ~~;,G- c, Date: ~TI~~Ir)F_ ~t/<lDl~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Ninilchik Unit, Susan Dionne P.A., Ninilchik State #2 Kenai Peninsula Borough, Alaska Marathon Oil Company by letter dated April 19, 2006 and received by the Alaska Oil and Gas Conservation Commission (The Commission) on April 21, 2006, has applied for an exception to the well spacing requirements of 20 AAC 25.055 (a)(2) for the drilling, completion and production of the Ninilchik State No. 2 gas delineation well. The subject well is proposed as a deviated hole with a surface location 1134 feet from the West Line and 983 feet from the North Line of Section 34 T1N, RI3W, Seward Merdian (S.M.) and a bottom hole location 474 feet from the West Line and 2314 feet from the South Line of Section 33, T1N, R13W SM. The Commission has tentatively scheduled a public hearing on this application for June 13, 2006 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7~' Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on May 24, 2006. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To Learn if the Commission wilt hold the public hearing, please call 793-1221 after May 30, 2006. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7~' Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on June 8, 2006 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the June 13, 2006 hearing. If you are a person with a disability who may need special accommodations in order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 793-1221. John K. Norman Chairman Published Date: May 7, 2006 AO # 02614033 (Journal of Commerce) Published Date: ASAP AO # 02614034 (Peninsula Clarion) • ~ ~ Ff 1 ~ ' ~ ;~1 .J, ~l ALASSA OIL A1QD GAS COI~TSERQA7.'I011T CO1~II-IISSIOIQ Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company PO Box 3128 Huston, TX 77253 • FRANK H. MURKOWSKI, GOVERNOR 333 W. T" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Ninilchik Field, Tyonek Undefined Gas Pool, Ninilchik State #2 Marathon Oil Company Permit No: 206-066 Surface Location: 983' FNL, 1134' FWL, Sec. 34, T1N, R13W, S.M. Bottomhole Location: 2966' FNL, 4806' FEL, Sec. 33, T1N, R13W, S.M. Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental .agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. Marathon Oil Company assumes the liability of any protest to the spacing exception that may occur. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). Marathon Oil Company Ninilchik State #2 Permit No: 206-066 Sincerely, ~~ Cathy P. Foerster Commissioner DATED this? of Ma 2006 y y, cc: Department of Fish & Game, Habitat Section w/ o encl. Department of Environmental Conservation w/o encl. ~j~-/b~ STATE OF ALASKA ALf~ OIL AND GAS CONSERVATION COM SION PERMIT TO DRILL 20 AAC 25.005 1~1C 5 ft~tz~~~ 1a. Type of Work: Drill ~ Redrili ^ Re-entry ^ 1b. Current Well Class: Exploratory ^ Stratigraphic Test ^ Service ^ Multiple Zone ^ Development Oil ^ Development Gas Q Single Zone 0 1c. Specify if well is proposed for: Coalbed Methane ^ Gas Hydrates ^ Shale Gas ^ 2. Operator Name: Marathon Oil Company 5. Bond: Blanket ~ Single Well ^ Bond No. 5194234 11. Well Name and Number: Ninilchik Unit -Ninilchik State #2 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: MD: 11,534 TVD: 8,304 12. Field/Pool(s): Ninilchik Unit 4a. Location of Well (Governmental Section): Surface: 983' FNL, 1,134' FWL, Sec. 34, T1 N, R13W, S.M. ' 7. Property Designation: ADL 389180 Tyonek Pool Top of Productive Horizon: 2,614' FNL, 3,751' FEL, Sec. 33, T1 N, R13W, S.M. 8. Land Use Permit: 13. Approximate Spud Date: May 25, 2006 Total Depth: 2,966' FNL, 4,806' FEL, Sec. 33, T1 N, R13W, S.M. ~ 9. Acres in Property: 4,607 14. Distance to Nearest Property: 60o ft (Susan Dionne PA) 4b. Location of Well (State Base Plane Coordinates): Surface:x - 222,383.828 y - 2,245,845.926 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 169 feet 15. Distance to Nearest Well Within Pool: 3,300 ft to NS #1 16. Deviated wells: Kickoff depth: 250 feet Maximum Hole Angle: 60.934 degrees 17. Maximum Anticipated Pressures in psig (see 20 5.035) Downhole: 3,973 Surface: 99r' 18. Casing Program: Specifications Top -Setting Depth -Bottom ' -{:-Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 L-80 PE 99' 0' 0' 120' 120' 121/4" 95/8" 40 L-80 BTC 1,579' 0' 0' 1,600' 1,315' 355 sacks 8 1/2" 7" 26 L-80 BTC 6,076' 0' 0' 6,097' 3,500' 424 sacks 7" 4 1/2" 12.6 L-80 Hydril 563 5,634' 5,900' 3,404' 11,534' 8,304' 537 sacks 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 Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Plot ^ Shallow Hazard Analysis ^ Property Plat ~ Diverter Sketch ~ Seabed Report ^ Drilling Fluid Program ~ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct. Printed Name Willard J. Tank Signature Date Contact Title Advanced Senior Drilling Engineer Phone 713-296-3273 Date May 15, 2006 Commission Use Only Permit to Drill Number: ,2~ ~ ~ API Number: 50- /~~ _ .2O36o Permit Approval Date: ~ _ 2Z_p See cover letter for other requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: ^ Other: `~y.l-- ~~1, E ~p ~dpp ~u Samples req'd: Yes^ N Mud log req'd: Ye No^ 1. r H2S measures: Yes^ No Directional svy req'd: Yes No^ APPROVED BY THE COMMISSION DATE: S ~2 Z~"r~ ,COMMISSIONER i orm 10-401 Revised 1212005 Submit in Duplicate ~RIGI~AL C] M Marathon MARATHON OII Company May 15, 2006 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Ninilchik Well: Ninilchik Unit -Ninilchik State #2 Dear Mr. Norman Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a Tyonek exploitation well. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@marathonoil.com. Sincerely, Willard J. Tan Advanced Senior Drilling Engineer Enclosures Ninilchik State #2 Drilling Program • • Marathon Oil Company Northern Business Unit / 1 MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik State #2 Originator: Will Tank Reviewed by: Pete Berga Brian Roy May 15, 2006 Date Date Date 5/15/2006 CONFIDENTIAL MATERIAL Page 1 of 19 Ninilchik State #2 Drilling Program • ~ Marathon Oil Company Northern Business Unit TABLE OF CONTENTS 1. Emergency Response Information .................................................................................................................. 4 1.1 Directions to Location .................................................................................................................................... .. 4 1.2 Rig Contact Numbers .................................................................................................................................... .. 4 1.3 Marathon Emergency Response Contacts ................................................................................................... .. 4 1.4 Outside Emergency Response ....................................................................................................................... 4 1.5 Marathon Contact List ................................................................................................................................... .. 5 2. Regulatory Agency Contacts ........................................................................................................................ .. 5 2.1.1. Internal Regulatory Contact .......................................................................................................................... .. 5 2.1.2. External Regulatory Contact ......................................................................................................................... .. 5 3. Regulatory Compliance ................................................................................................................................. .. 5 4. Drilling Program Summary ............................................................................................................................ .. 6 4.1 Generai Well Data ......................................................................................................................................... .. 6 4.2 Working Interest Owners Information ............................................................................................................. 6 4.3 Geologic Program Summary ........................................................................................................................... 6 4.4 Summary of Potential Drilling Hazards ......................................................................................................... .. 7 4.5 Formation Evaluation Summary .................................................................................................................... .. 7 4.6 Drilling Program Summary ............................................................................................................................ .. 8 4.7 Casing Program Summary ............................................................................................................................ 10 4.8 Casing Design ............................................................................................................................................... 10 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP} ........................................................... 10 4.10 Casing Test Pressure Calculations ............................................................................................................... 12 4.11 Blowout Prevention Equipment, Testing and General Procedures ............................................................... 12 4.11.1. Function Testing ............................................................................................................................................ 12 4.11.2. Pressure Testing ........................................................................................................................................... 13 4.12 Wellhead Equipment Summary ................................................................................................................... 13 4.13 Directional Program Summary ...................................................................................................................... 13 4.14 Directional Surveying Summar'Y .................................................................................................................... 14 4.15 Drilling Fluid Program Summary ................................................................................................................... 15 4.16 Drilling Fluid Specifications ........................................................................................................................... 15 4.17 Solids Control Equipment .............................................................................................................................. 16 4.18 Cement Program Summary .......................................................................................................................... 17 4.19 Regulatory Waivers and Special Procedures ............................................................................................... 17 4.20 Bit Summary .................................................................................................................................................. 18 4.21 Hydraulics Summary ..................................................................................................................................... 18 4.22 Formation Integrity Test Procedure .............................................................................................................. 19 5/15/2006 CONFIDENTIAL MATERIAL Page 2 of 19 • Ninilchik State #2 Drilling Program Attachments Marathon Oil Company Northern Business Unit Group Attachment Attached Commercial Information AFE Da s/Cost vs. Depth Curves X Project Objectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Program Drillin Contract Regulato / HES Information Emergenc Evacuation Plan X H2S Contingenc Plan n/a Re ulato Permits X Regulato Rules and Regulations Risk Anal sis Miscellaneous Pro rams endors Bit Proposal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead Equipment -Description/Drawin s Drill String and BHA Summa Rig Mobilization/Mooring Procedure n/a Geological Information Location Map w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Temperature Curves Geologic Structure Maps Geolo is Cross Section Bath met Map n/a Anal sis Riser Anal sis n/a Station Keeping Anal sis -Mooring/DP n/a Stress Check Casin Design File X Maximum Allowable Overpull Miscellaneous Information Wellbore Diagram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Bridging Document Detailed Casing Specifications X Detailed Drill Pipe S ecifications 5/95/2006 CONFIDENTIAL MATERIAL Page 3 of 19 Ninilchik State #2 Drilling Program Marathon Oil Company Northern Business Unit 1. Emergencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°08'19.583"N Longitude - 151 °31'22.834"W From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue Easton Ground Bridge Access Road 3.2 miles. Turn West on Kalifornsky Beach Road. Go West and then South, go 16.9 miles. Turn South on Sterling Highway, go 12.8 miles. Turn West onto road to the pad (Sterling Highway milepost 128.6). 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-2641 1.3 Marathon Emergencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emergencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Key Performance Factors: 1 Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 4 of 19 Ninilchik State #2 Drilling Program Marathon Oil Company Northern Business Unit 1.5 Marathon Contact List Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-456-3350 713-456-3351 713-499-6707 281-246-4686 Jennifer Enos Geologist 713-296-3319 713-408-3583 Clyde Scott Reservoir Engineer 713-296-2336 Jim Thompson Completion Engineer 713-296-2730 713-232-9347 713-513-6019 Dave Morris Drilling Supervisor 907-283-1312 907-398-0281 907-283-1313 John Nicholson Drilling Supervisor 907-283-1312 907-283-1313 2. Regulatolty Agency Contacts 2.1.1. Internal Regulatory Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Regulatory Permits 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Regulatorv Contact Contact Title Office Phone Facsimile 24 hr Emer enc Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Regulatory Compliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 a 10 F Requirement fora 24 hour notice to AOGCC prior to BOP test. Comments 5/15/2006 CONFIDENTIAL MATERIAL Page 5 of 19 Ninilchik State #2 Drilling Program 4. Drilling Program Summary 4.1 General Well Data Marathon Oil Company Northern Business Unit Well Name Ninilchik State #2 Lease !License Surface Location 983' FNL, 1,134' FWL, Sec. 34, T1 N, R13W, S.M. WBS Code DX.06.13333.CAP.DRL Slot/Pad Ninilchik State Pad Field Ninilchik Unit Spud Date 05/25/06 (est.) KB (above MSL) 169' CountylProvince Kenai Peninsula API No. GL (above MSL) 148' State I Country Alaska Permit No. Perm. Datum KB Total MD 11,534' Well Class Development Water Depth N/A Total TVD 8,304' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: 1 Key Performance Factors: 1 Comments: 4.2 Working Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 60% P.O. Box 196168 907-561-5311 907-565-3076 Anchors e, AK 99519-6168 Chevron -Texaco 40% 4.3 Geologic Program Summary Surface Location Coordinates From Lease/Block Lines 983' FNL, 1,134' FWL, Sec. 34, T1 N, R13W, S.M. Latitude 60° 08' 19.583" N Longitude 151 ° 31' 22.834" W UTM North (Y) 2,245,845.926' UTM East (x) 222,383.828' Tolerance Pore Pore MD -RKB TVD -RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Beluga (Not a Prod Target) 1,659 1,344 8.46 Sandstone Gas/Water Tyonek (Primary Target) 6,707 3,824 9.20 Sandstone Gas 5/15/2006 CONFIDENTIAL MATERIAL Page 6 of 19 • Ninilchik State #2 Drilling Program Marathon Oil Company Northern Business Unit Depth (KB) Horizontal Displacement (ft) Target MD (ft) TVD (ft) Location +N/-S (Y) +E/-W (X) Tolerance {ft) Tyonek 6,707 3,824 2,614' FNL, 3,751' FEL, Sec. 33, T1 N, R13W, S.M. -1,631 -4,885 Circle 200' radius Tyonek T-2 7,396 4,307 2,769' FNL, 4,215' FEL, Sec. 33, T1 N, R13W, S.M. -1,786 -5,349 Circle 750' radius Tyonek T-3 9,320 6,090 2,966' FNL, 4,806' FEL, Sec. 33, T1 N, R13W, S.M. -1,983 -5,940 Circle 200' radius 4.4 Summary of Potential Drilling Hazards Depth KB Hazard Event Discussion Precautions (ND) Bit or BHA balling Surface Hole Maintain high pump rates to keep bit and BHA clean. Use extra circulation time if necessary. Excessive Torque Intermediate & Production Use good hole cleaning techniques with high pump Excessive pumping on bottom could Hole rates. Add lubricant where necessary. result in hole washout. Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No HZS is anticipated. Gas sands will be encountered from +/- 2,083' MD (1,550' TVD) to total depth of the well. These sands will run from slightly depleted to slightly above normal pressure. The Flo-Pro mud system that will be properly weighted to hydraulically control all sands and lost circulation materials will be available on location, if required. Best Practices: Key Performance Factors: 1 Comments: 4.5 Formation Evaluation Summary Interval LWD Electric Logs Mud Logs Surtace None None None 0' - 1,600' MD Intermediate None Reeves Quad Combo. Pull GR-Neutron to Basic with GCA, shale density, temperature in and 1,600' - 6,097' MD surface inside casing. out, sample collection (10' samples). Production None Reeves Quad Combo with pressures Basic with GCA, shale density, temperature in and 6,097' - 11,534' MD through pipe. Pull GR-Neutron to tie into out, sample collection (10' samples). Intermediate run. Completion N/A GR, CCL, CBL N/A Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 7 of 19 Ninilchik State #2 Drilling Program • • 4.6 Drilling Program Summary Drive Pipe: N/A Marathon Oil Company Northern Business Unit Conductor: 20" set to approximately 120', prior to drilling rig move. MIRU drilling rig. NU diverter. 1. Move in and rig up conductor drilling rig. 2. Run 20" conductor while drilling to +/-120 ft. RKB. 3. RDMO conductor rig. 4. Move in and rig up rotary drilling rig. 5. Install starting head 20" SLC x 21 1/4", 2M flanged. 6. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. ~ 7. Function test diverter and diverter valve. Best Practices: 1 Key Performance Factors: 1 Comments: Surface: Drill 12-1/4" hole to +/- 1,600' set 9-5/8" casing. 1. Drill a 12 1/4" hole to 1,600' MD (1,315' TVD) per the directional plan. 2. Run and cement 9 5/8" casing. 3. Cut off 9 5/8" casing. ND diverter. 4. Install 9 5/8" slip lock connection X 11" 5M flanged multibowl wellhead. / 5. NU 11" 5M X 13 5/8" adapter spool. NU 13 5/8" 5M BOP'S. Test BOP's and choke manifold to 250/3,000 psi. 6. Set wear bushing. Test surface casing to 1,500 psi. Best Practices: 1 During cementing operations, take returns in the cellar, instead of into the pits. Eliminates the clean up of pits from cement that circulated to surface. Vac trucks will pull from cellar. Key Performance Factors: 1 Comments: Intermediate: Drill 8-1/2" hole to +/- 6,097' set 7" casing. 1. PU 8 1/2" PDC bit and directional BHA. D ' ou float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW i 18.7 pg. 3. Drill 8 1/2" directional hole to 6,097 MD ( 0' TVD) as per directional program, short tripping as required. 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs on drill pipe utilizing the shuttle system. TOOH with logging tool. Pull wear bushing. 6. Change out pipe rams with 7" casing rams in single ram. Run test plug and test casing rams to 3,000 psi. 7. Run and cement 7" casing. Land hanger in multibowl wellhead. 8. Back out landing joint. Change out 7" casing rams with pipe rams. Run test plug and test BOP's to 250/3,000 psi. 9. Set wear bushing. Test intermediate casing to 2,500 psi. Best Practices: 5/15/2006 CONFIDENTIAL MATERIAL Page 8 of 19 Ninilchik State #2 Drilling Program • • Marathon Oil Company Northern Business Unit 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Key Performance Factors: 1 Comments: Production Liner: Drill 7" hole to +/- 11,534' set 4-1/2" liner. Tie back to surface with 4-1/2" tubing. 1. PU 4 3/4" pilot bit, 6" X 7" DOSRWD2 and directional BHA. Drill float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW 16.8 ppg. 3. Drill a 7" hole to an anticipated TD of 11,534' MD (8,304' TVD) as per the directional program, short tripping as required. % 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs as per plan. RD logging company. 6. TIH w/ 6 1/8" tri-cone bit to TD for wiper trip. TOOH and laydown BHA and drill pipe. Pull wear bushing. 7. RU and run 4 1/2" Hydril 563 casing liner with hanger and liner hanger packer on drill pipe. Place pressure activated ~ cementing tool (DV tool) in the liner string so that it will be at approximately 9,084' MD (5,854' TVD). Run liner to TD. On bottom reciprocate and rotate liner while circulating the hole. 8. RU cementing company. Cement 15Y Stage of 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up and open DV tool. Circulate hole clean above DV tool. WOC. Cement 2"d Stage. Drop wiper plug to displace pipe and shift DV tool closed. (see detailed DV tool procedure) 9. Set liner hanger and packer (liner top at approx. 5,900' MD (3,404' TVD), disconnect from liner, circulate hole clean. TOOH. f 10. PU mill for 4 1/2" along with string mill for 7" casing. Make cleanout trip to top of 4 1/2" liner with mill combo on drill pipe. 11. Polish 4 1/2" liner seal bore. TOOH laying down. 12. Run 4 1/2" tubing with seal unit. Displace hole with 6 %KCL. Space out tubing and land hanger. ND BOP, NU tree and test to 5,000 psi. 13. Rig down and move out drilling rig. Best Practices: 1 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. Key Pertormance Factors: 1 Comments: Completion: Completion will be done without a rig. The completion will encompass work to run a cement bond log, displace the KCL water in the wellbore with nitrogen, perforate several Tyonek intervals, and test the well for rate and pressure. No stimulation of the perforating intervals is anticipated. Best Practices: 1 Key Pertormance Factors: 1 Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 9 of 19 Ninilchik State #2 Drilling Program • Marathon Oil Company Northern Business Unit 4.7 Casing Program Summary MD (ft) Connection API Ratings Casing Makeup Hole ~ ., ~ a -. ~ o ~, II 'rn Size Weight ID Drift ! ~ O. D. Torque Size m a ~ °- n ~ v (in) Top Bottom (Ibs/ft) (in) (in) Grade Type (in) (ft-Ibs) (in) U 95/8 0 1,600 40 8.835 8.679 L-80 BTC 10.625 N/A" 121/4 5,750 3,090 979 7 0 6,097 26 6.276 6.151 L-80 BTC 7.656 N/A * 8 1/2 7,240 5,410 667 41/2 5,900 11,534 12.60 3.958 3.833 L-80 Hydril563 5.2 10,080 7 8,430 7,500 288 Best Practices: 2 Have float equipment made up at Tubescopes yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 3 Make up torque shown for the Hydril 563 is 80% of yield. The final make up torque for the liner should exceed any potential torque that would be used to release the running tool from the hanger. * -Make up buttress connection to proper mark, not to a torque value. Key Performance Factors: 1 Comments: 4.8 Casing Design Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface n o Size Weight TVD When Set Grad Press Pressure ~ o (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m U ~ 9 5/8 40 L-80 1,315 9.4 18.7 8.5 1,181 2.23 4.81 3.59 7 26 L-80 3,500 9.4 16.8 8.5 2,799 2.69 3.04 2.64 41/2 12.60 L-80 8,304 9.8 16.8 9.2 2,799 3.02 1.78 1.90 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size TVD MAWP' MASP *` Mud/Gas (in) (ft) (psi) (psi) .Percentage 9 5/8 1,315 3,950 1,181 0/100 7 3,500 5,068 2,799 0/100 4 1/2 8,304 5,068 2,799 0/100 MAWP =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure 5/15/2006 CONFIDENTIAL MATERIAL Page 10 of 19 • Ninilchik State #2 Drilling Program Surface casing: 9 5/8" (1,600' MD, 1,315' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (18.7 ppg + 0.5 ppg) x .052 x 1,315' - (.1 psi/ft x 1,315') MASPfrac = 1,313 psi - 132 psi MASPfrac = 1,181 psi. MASPbnP = BHPoPe~ no~efd -Hydrostatic pressure of a gas column MASPbnP = (8.5 ppg x .052 x 3,500') - (0.1 psi/ft x 3,500') MASPbnP = 1,547 psi - 350 psi MASPbnP = 1,197 psi MASP =MASPfrac = 1,181 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) - (9.4 - 8.3) x .052 x 1,315' MAWP = 4,025 psi - 75 psi = 3,950 psi Intermediate casing: 7" (6,097' MD, 3,500' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnce) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (16.8 ppg + 0.5 ppg) x .052 x 3,500' - (.1 psi/ft x 3,500') MASPfrac = 3,149 psi - 350 psi MASPfrac = 2,799 psi. MASPbnP = BHPoPan noiefd -Hydrostatic pressure of a gas column MASPbnP = (9.2 ppg x .052 x 8,304') - (0.1 psi/ft x 8,304') MASPbnP = 3,973 psi - 830 psi MASPbnP = 3,143 psi MASP =MASPfrac = 2,799 psi ~ MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 7,240) - (9.4 - 9.4) x .052 x 3,500' MAWP = 5,068 psi - 0 psi = 5,068 psi Production liner: 4 1/2" (Top - 5,900' MD, 3,404' TVD) (Bottom - 11,534' MD, 8,304' TVD) MASP = MASPs sis° = 2,799 psi MAW P = MAW Ps sie° = 5,068 psi Best Practices: 1 Key Performance Factors: 1 Comments: Marathon Oil Company Northern Business Unit 5/15/2006 CONFIDENTIAL MATERIAL Page 11 of 19 Ninilchik State #2 Drilling Program 4.10 Casing Test Pressure Calculations Marathon Oil Company Northern Business Unit Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Best Practices: 1 Key Performance Factors: 1 Comments: 4.11 Blowout Prevention Equipment, Testing and General Procedures BOP PROGRAM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS Low/High Casing (in) (psi) (psi) (psi) (Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 9 5/8 3,950 1,181 3,000 9.4 (1) 13 5/8" 5M blind ram 250/3,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Intermediate 7 5,068 2,799 3,000 9.4 (1) 13 5/8" 5M blind ram 250/3,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Production 4 1/2 5,068 2,799 3,000 9.8 (1) 13 5/8" 5M blind ram 250/3,000 (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M pipe ram Blowout Preventers .,~ f I The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single pipe ram. 3 The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testing Function Regularly. 5/15/2006 CONFIDENTIAL MATERIAL Page 12 of 19 Ninilchik State #2 Drilling Program Marathon Oil Company Northern Business Unit 4.11.2. Pressure Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practices: 1 Key Performance Factors: 1 Comments: 4.12 Wellhead Equipment Summary Component Description Casing Hanger Type Casing Head 11" 3M X 9-5/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, PR1 10 3/4" x 7" Fluted Mandrel Tubing Head 11" 3M Studded Bottom X 11" 5M Flg Top, W/ 2, 2-1/16" 5M Studded Outlets, U,AA,PSL1,PR1 11" x 4 1/2" Manual Slip Adapter Flange 11" 5M X 4-1/16" 5M W/ Seal Pocket and 3" H BPV Threads Best Practices: 1 Key Performance Factors: 1 Comments: Use a drilling spacer spool on the 9-5/8" casing head to allow for a B-Section contingency. 4.13 Directional Program Summary Build Turn Coordinates Sec. No. Description MD (ft) TVD (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth (deg) +N/-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 251.535 0 0 0 2 KOP 250.00 250.00 0 0 0 0 251.535 0 0 0 3 Build up Section 5.00 0 5.00 251.535 4 End of Build 1,468.68 1,251.60 5.00 0 5.00 60.934 251.535 -186.62 -558.87 589.21 5 Hold Section 0 0 0 60.934 251.535 6 End of Hold 6,273.77 3,586.00 0 0 0 60.934 251.535 -1,516.86 -4,542.59 4,789.15 7 Drop Section -2.00 0 2.00 251.535 8 End of Drop 9,320.47 6,090.00 -2.00 0 2.00 0.00 251.535 -1,983.41 -5,939.77 6,262.17 9 TD 11,534.47 8,304.00 0 0 0 0.00 251.535 -1,983.41 -5,939.77 6,262.17 5/15/2006 CONFIDENTIAL MATERIAL Page 13 of 19 • ~ Ninilchik State #2 Drilling Program Marathon Oil Company Northern Business Unit c 0 0 L N f6 U N H c 0 °o r O Z r 0 Comments: Vertical section calculated from a reference azimuth of 251.53° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Degth (MD) NS #1 70.29 Surface i No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 Key Performance Factors: 1 Comments: 4.14 Directional Surveying Summary Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Tool Remarks Surface 0-1,600' X Intermediate 1,600' - 6,097' X Production 6,097' - 11,534' X Best Practices: 1 5/15/2006 CONFIDENTIAL MATERIAL Page 14 of 19 0 1000 2000 3000 4000 5000 6000 7000 Vertical Section at 251.53° (2500 ft/in) West(-)/East(+) (2000 ft/in) • Ninilchik State #2 Drilling Program Key Performance Factors: 1 Comments: 4.15 Drilling Fluid Program Summary Marathon Oil Company Northern Business Unit Interval-TVD Minimuminventory ~ From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, Polypac 0 1,315 8.6 - 9.4 Gel / Gelex Spud Mud Supreme UL, Sodium Meta Bisulfate Flo-Vis, PolyPacSupreme UL,kCI, SafeCarb 10, 1,315 3,500 9.4 - 9.8 6% Flo-Pro w! SafeCarb Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex, Klagard 1 Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 3,500 8,304 9.4 - .8,/ 6% Flo-Pro w/ SafeCarb 10, Asphasol Supreme, Barite, Caustic, Conqor `° 404, Sodium Meta Bisulfate, Lubetex Best Practices: 1 Key Performance Factors: 1 Comments: 4.16 Drilling Fluid Specifications Interval - TVD LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (seGgt) 1 min (Ib./100ft2) PV (cP) YP (Ib/100 ft~) Fluid Loss (cc) pH Solids (%) 0 1,315 8.6-9.4 60-100 N/A 25-35 NC-12 +/-9.5 <7 1,315 3,500 9.4 - 9.8 > 40,000 8 - 12 7 - 9 +/- 9.5 +/- 7.5 3,500 8,304 9.4 - 9.8 ~ > 30,000 10 - 14 5 - 7 +/- 9.5 +/- 5 Best Practices: 1 As a standard practice for tie-back string completions, displace the drilling mud above top of liner with brine treated with corrosion inhibitor (Conqor 303A) at a concentration of 1 drum per 100 barrels of fluid. Key Performance Factors: 1 Comments: See mud prognosis for details. Sized CaCOs (SafeCarb) will be used to control leakoff. 5/15/2006 CONFIDENTIAL MATERIAL Page 15 of 19 • Ninilchik State #2 Drilling Program • Marathon Oil Company Northern Business Unit 4.17 Solids Control Equipment m 0 ~ ;?~ f9 ~ Q ~ U N w y U m ~ N ~ N ~ y p Y co m u~ 'u~ 'a c .= o a> Interval ~ ~ ~ ~ U U U N Comments 0 - 11,534' MD X X X X Closed Loop System, Full Containment, Run shakers with finest screens possible Item Equipment Specifications (quantity, design type, brand, model, flow capacity, etc) Shaker 2 - Swaco Mongoose PT Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Best Practices: Key Performance Factors: Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 16 of 19 \J Ninilchik State #2 Drilling Program • Marathon Oil Company Northern Business Unit 4.18 Cement Program Summary De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (in) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) With OH Excess (ft3) Density Lead/Tail (ppg) Open Hole Excess (%) Thickening Time (hrs) 20 120 120 Driven N/A 9 5/8 1, 600 1, 315 12 1 /4 0 0 625 891 12.0 50 8 7 6,097 3,500 8 1/2 1,500 1,267 586 831 12.5 / 15.8 40 8 4 1/2 11,534 8,304 7 5,900 3,404 873 966 13.0/13.0 10 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty WL FW Strength (psi) (in) Sluny Cement Description (Ib/gal) (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 355 2.51 891 0 11.28 Fresh 812 0 500 7 Lead Class "G" 12.5 258 2.47 637 1,500 13.79 Fresh Tail Class "G" 15.8 166 1.17 194 5,097 4.99 Fresh 2nd Stage Class "G" 13.0 298 1.80 536 5,900 9.22 Fresh 4 1/2 15` Stage Class "G" 13.0 239 1.80 430 9,084 9.22 Fresh Best Practices: 1 Pump several fluid calipers at TD to help with the hole volume determination from the open hole caliper log. 2 A KCL spacer will be utilized and will be sized to 2/3 of the normal volume (20 bbl) to try and minimize the possibility of bridging in the liner lap. 3 A pressure activated cementing valve (DV tool) will be placed in the casing string at approximately 9,084' MD (5,854' TVD). Note the small cement excess on the production hole. This is to ensure that hydrostatic pressure stays below expected frac gradients. Key Performance Factors: 1 Comments: See cement prognosis for details and spacer specifications. 4.19 Regulatory Waivers and Special Procedures Regulation Deviation Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 17 of 19 Ninilchik State #2 Drilling Program 4.20 Bit Summary • Marathon Oil Company Northern Business Unit Interval - MD Type Recommended Estimated From (ft) To (ft) - Size (in) Manufacturer Model No. IADC WOB (kips) RPM Rotating Hours Expected Minimum ROP (ft/hr) 0 1,600 12 1/4 Christensen MXL-1 117 20 - 50 80 - 300 1,600 6,097 8 1/2 Christensen HCM605 M223 Up to 25 Motor 6,097 11,534 4 3/4 Christensen DOSRWD46.000 M233 3 - 5 100 - 350 Best Practices: 1 Key Performance Factors: 1 Comments: See bit prognosis for additional information. Back up bits for the 8 1/2" hole section will consist of PDC and mill tooth bits. Back up bits for the 7" hole section will consist of 6 1/8" mill tooth and TCI tricone bits. 4.21 Hydraulics Summary Qty Make Model Liner ID (in) Stroke (in) Max Press @ g0% WP (psi) Displacement @ 95% Vol. eff (gal/stroke) Max Rate @ 95% Vol. eff (spm/gpm) Hole Sections Used I! On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil Well A600PT 5 8 2,597 2.04 125 / 255 Intermediate 5 8 2,597 2.04 125 / 255 Production Est. Hole Pump Standpipe Openhoie Nozzle OP at Depth-MD Size Rate Pressure Min AV MW ECD Size bit (ft) (in) (gpm) (psi) (fpm) (ppg) (ppg) (32"s) si Remarks (Drill string configuration) 3 - 18's 0 - 1,600 12 1/4 600+ 1,600 118 9.4 Actual Data from NS #1 (@ 1,550' MD) 1-16 1,600 - 6,097 8 1/2 500+ 2,150 259 9.4 5 - 15's Actual Data from NS #1 (@ 5,570' MD) 6,097 - 11,534 6 x 7 300+ 2,900 223 9.8 6 - 11's Actual Data from SD #2 (@ 11,094' MD) Best Practices: 1 Key Performance Factors: 1 Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 18 of 19 Ninilchik State #2 Marathon Oil Company Drilling Program Northern Business Unit 4.22 Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Key Performance Factors: 1 Comments: 5/15/2006 CONFIDENTIAL MATERIAL Page 19 of 19 Marathon Oil Well Ninilchik State #2 Diverter 21 1/4" 2M Diverter ~ Knife Valve Diverter Spool Marathon Oil Well Ninilchik State #2 BOP Stack Flow Nipple Flow Line 13 518" 5M Annular Preventer 13 5/8" 5M Double Ram Preventer Pipe Ram 2 1/16" 5M Blind Ram Check Valve 2 1/16" 5M Manually Operated Valves ~~ ~LN-+-~--r~JLU--~J--~U Kill Choke 13 5/8" 5M Cross Pipe Ram 13 5/8" 5M Single Ram Preventer 1k, 2 3 1/8" 5M Manually Operated Valve ~~~~ ~llllllllnllll I 3 1/8" 5M Hydraulically ~ Operated Valve Bottom of Single gate must be 24-45" from ground level for Glacier 1 rig placement. 13 5/8" 5M x 13 5/8" 5M Drilling Spool 13 5/8" 5M Tubing Head Flange Marathon Oil Well Ninilchik State #2 Choke Manifold To Gas Buster x 000 0 0o s To Blooey Line Bleed off Line to Shakers x~ cx o° g ~ I --- -l I o° o -u x 0 000 ~~ ~~ ~ ~ * 3" 5M Valves x I 2 9/16" 10M Swaco Hydraulically Operated Choke 3 1/8" 5M Manually Adjustable Choke From BOP Stack • • Surface Use Plan for Ninilchik Unit -Ninilchik State #2 Surface location: Anticipated at 983' FNL, 1,134' FWL, Sec. 34, T1 N, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Ninilchik State #2 well and is shown on the attached map. Ninilchik, Alaska is the nearest town to the site. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Ninilchik State #2. 3) Location of existing wells Well Ninilchik State #2 will be drilled on Ninilchik State pad. A pad drawing is enclosed that shows the proposed location of Ninilchik State #2. 4) Location of existing and/or proposed facilities Facilities will be built after Ninilchik State #2 has been drilled and the rig is demobilized from the pad. 5) Location of Water Supply A water supply well exists on the pad that Ninilchik State #2 will be drilled from. 6) Construction Materials No construction is planned on the pad prior to the facility construction due to start after drilling operations are complete. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be hauled to Pad 34-31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities • A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Town & Country will collect and transport sanitary wastes to their ADC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Ninilchik State #2 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, will occur after the abandonment of Ninilchik State #2 and the other existing wells on the pad. 10) Surface ownership The State of Alaska is the surface owner of the land at the Ninilchik State pad. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: ~ ~ 6 Name and Title: / Willard J. Tank, Advanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713) 296-3277 • • 2s v 33 34 W _Z J z 0 U W 1 1 i ,~ I ~ I /~ I I I I ~ SECTION LINE ~ ~ NOTE: SECTION LINES -~ NOT TO SCALE ~~ AS-STAKED NINILCHIK, STATE PAD NO. 2 WELL ASP ZONE 4 NAD27 cV I N. 2245845.926 E: 222383 828 Z ,~.C. ' ~ ' ~- ~ . \ /~ LAT:60°08'19.583"N J ,~' ~~~ ~ ~~~~~ I LONG: 151 °31'22.834"W Z E. ~~ '-2.643 1 ~ FWL = 1134' u- EL'S'.' = 147.2' I~ FNL = 983' c~ ELEV = 148.08' (MSL) ~j ~, I SECTION 34 TOWNSHIP 1N ~ , , ~ ~ RANGE 13W, SM AK ~ I ~ >~ 1134' FWL NS-2 c~ I ~ _ ~__ _ _ - _ _~ _ l I~I~OPEI~T~ LINE ~ r __ _ _ _ ___ _-.- __ - - v I _~ _ ~~ / ~°;~~ SECTION r~ I I I ~, 34 I /_ _`~, / >> _ _ _ -~ _. / l ~ ~ ~ ~ ~ ~1 l~ ~ ~ ~ ~ ;~ NINILCHIK STATE ~ ~ I \~ ~ PAD I I ~ ~_ ,~ t NOTES 1. BASIS OF COORDINATES IS KEN1 CORS STATION, NAD27 ALASKA STATE PLANE ZONE 4. 2. BASIS OF VERTICAL CONTROL IS NGS BENCH MARK MONUMENT V 82, ELEVATION = 289.42 FEET (NGVD 88). SCALE o so ~zo NORTH FEET ' `. T • j~*~/~~ T PROJECT REVISION: 1 M 1•MJL~~LK~[ 1~ ~iF•1~V11V~ NINILCHIK, STATE PAD NO.2 DATE: 4/11/06 ~~ ~MP~Y WELL AS-STAKED LOCATION DRAwNBV: DME wnnt-a~ ~~ SURFACE LOCATION DIAGRAM SCALE: '~=60~ PROJECT NO. 063022 CONSI1 LtIN~C INC. ENGINEP O. BOX 46880G0/OST AV AK 9G~/ 9ESTING LOCATION BOOK NO. 06-04 VOICE: (907)283-4218 FAX: (907)283-3265 SHEET McLane EMAIL: sAmaANE@MCIaNECG.coM S34 T1 N R13W SEWARD MERIDIAN, ALASKA 't of ~ r ,~ _ Project Location ,,~ ~' ~t s. ~ _~ a ~ 2 / ~_ W Y ~~ .. 3 .~ '~; ' Ln.el •q ~ ~,t ~~. ~ - - _ -~ V~ God ~~y~ { ,, ~::;~. ;h 3 ~ - _ F/. i _ -- ' _ _ ~~'"~ Jecklr>aky Ranch _, ~ ti~nilch~k NO =O a ~~ /N~i X90 ry . /. \inilchik yi.;. • i w r °ar-. ~ ~... - i ~ Yi .. 36 = ? ~ 32 33 34 ' s~.... _ I ,! . _, i .~ ~ -l ':. ,r ~ ; -- ~a~ d . c~yr ~ f ~' ^z ~ I.- -.- .-_. ->~~~ = - -- -~--_--- -~-.'- - -- ; , KENAI (A-5). ALASKA woo o eaa, soot :r_x ;soao :rut:: - ~-1- is ~-.r c ---[__.-~-r ..---r---r.._r ~~".~~3_--a--~-.- - ~- - ~ - Marathon Oil Company __ t__ _ - _._ -__ _ _ _ - _ _= _ - Project: Ninilchik State No. 2 SW 1/a, NW 1/.~, 34, T1N, R13W Seward Meridian 29 25 T01N R14W z TO S R14 ..,,~ 11 12 19 31 6 7 20 29 28 T01N R13W .~o~~~.,.,.-~ NS #1 '~'~~~ s. a_~..,.. r w. rureo a 33 Ninilchi St to #2 PTD 11,53 ' MD, 304' 0 a 0 o T01S1 R13W 27 4 23 3 26 Ninilchik State #2 Location Map 9 GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT e. MARATHON K ~ o 750 >soo 2250 3000 4= ® 3750 f] ctT v r ~ 4500 N 7 ~~ H 6000 6750 7500 8250 MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #2 Field: Ninilchik Field Well: NS#2 Facilit Ninilchik State Wellbore: NS#2 Ver 1 Vertical Section (ft) ~" "~" °7500 ° Azimuth 25153° with reference 0.00 N, 0.00 E from wellhead ~~~ BAKER NV6HES INTEQ z 0 MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 1 of 7 «r~i BAKER N~1t~LNEB INTEQ Operator .. ~ MARATHON Oil Company 'Slot 'Slot #2 Area Cook Inlet, Alaska (Kenai Penninsu[a) Well ' NS#2 }±ield Ninilchik Field Wellbore NS#2 Ver 1 Nacility Ninilchik State orth Reference 7 / TM Alaska State Plane, Zone 4 US feet 1.1 Scale 0.999988 'Report Generated ~OS/O1/06 at 09:44:45 Wellbore last revised 04/18/06 Database/Source file WA-Anchora~e/NS#2 Ver l.xml 1 MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 2 of 7 ~~~~ BAKER HV6ifE~r INTEQ ~ ~ Operator ~. ~ F~~r ;`r4 f y q S ifi MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State ~LPAT MD feet] H DATA Inclination [°] 0.00 O.Oi 100.00' O.Oi 200.OOt O.Oi 250.00 300 00' O.Oi 2 Si ` . 400.OOt . , 7.Si SOO.OOt 12.Si 600.00 i 17.Si 1000.00 1100.00 1200.00 1400.00 1468.68 1468.68 ].500.00 0.00 1700.00 1800.00 1900.00 2000.00 37.50 42.50 47.50 57.50 60.93 60.93 60.93 60.93 60.93 60.93 60.93 stations) ~ =interp olated/extra polated sta tion Azimuth [°) TVD [feet] Vert Sect [feet] North [feet East [feet] 251.535 0.00 0.00 0.00 0.00 0.000 100.00 0.00 0.00 0.00 0.000 200.00 0.00 0.00 0.00 251.535 1 535 250.00 0.00 tiN: ~ ~ 0.00 0 3 0.00 . 251.535 399.57 9.80 - . . -3.11 -9.30 251.535 498.02 27.16 -8.60 -25.76 251.535 594.58 53.04 -16.80 -50.31 251.535 688.52 87.23 -27.63 -82.74 9.48 -41 A; 251.535 865.70 179.46 -56.84 -170.22 251.535 947.59 236.80 -75.00 -224.61 251.535 1024.17 301.06 -95.35 -285.56 251..535 1094.86 371.75 -117.74 -352.61 a , 5.1.535 1159.12 _ ~_. ~gr;'• . 251.535 1216.46 530.22 -167.93 -502.92 251..535 1251.60 589.21 -186.62 -558.87 251.535 1251.60 589.21 -186.62 -558.88 251.535 .~ 1266.82 ~ 616.59 ~ . -195.29 -584.84 a K.1. ~ ~. ~ t 1~ ~ _222.97 > X75 251.535 1363.98 791.40 -250.66 -750.65 251.535 1412.56 878.80 -278.34 -833.56 251.535 1461.14 966.21 -306.03 -916.47 251.535 1509.72 1053.62 -333.71 -999.37 Grid East survey feet] Grid North [us survey feet] DLS 1°/100ft] Build Rate [°/100ft1 Turn Rate [°/100ft1 222383.83 2245845.93 0.00 0.00 0.~ 222383.83 2245845.93 0.00 0.00 0.~ 222383.83 2245845.93 0.00 0.00 0.~ 222383.83 2245845.93 0.00 0.00 0.1 222374.46 2245843.04 5.00 5.00 0.1 222357.87 2245837.92 5.00 5.00 0.1 222333.15 2245830.30 5.00 5.00 0.1 222300.48 2245820.22 5.00 5.00 0.1 222212.35 2245793.03 5.00 5.00 0.1 222157.56 2245776.13 5.00 5.00 0.1 222096.15 2245757.19 5.00 5.00 0.1 222028.61 2245736.35 5.00 5.00 0.1 221877.18 2245689.64 5.00 5.00 0.1 221820.81 2245672.25 5.00 5.00 O.I 221820.81 2245672.25 0.00 0.00 0.1 221794.65 2245664.18 0.00 0.00 O.i ~ 221627.61 2245612.65 0.00 0.00 0.1 221544.09 2245586.88 0.00 0.00 O.i 221460.57 2245561.12 0.00 0.00 0.~ 221377.05 2245535.35 0.00 0.00 0.~ MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 3 of 7 ,~~~ BAKER HV6NES INTEQ Operator ry ~ _~- MARATHON Oil Company -- Slot -~ _ - Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State LLPAT H DATA (125 stations) 1=interpolated/ext~ MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] 2200.001 60.934 251.535 1606.89 1228.43 2300.001 60.934 251.535 1655.47 1315.83 2400.001 60.934 251.535 1704.05 1403.24 2500.001 60.934 251.535 1752.63 1490.65 .6.001 '.934 251::,_ 2700.001 60.934 251.535 1.849.80 1665.46 2800.001 60.934 251.535 1898.38 1752.86 2900.001 60.934 251.535 1946.96 1840.27 3000.001 00 X 60.934 251.535 "535 ~ ] 995.54 2 l 927.68 1 19. 3200.001 60.934 ~ 251.535 0 2092.71 2102.49 3300.001 60.934 251.535 2141.29 2189.89 3400.001 60.934 251.535 2189.87 2277.30 3500.001 60.934 251.535 2238.45. 2364.71 3600Ag0-? -60.934 +3~ ~ ~' r ~ ~ .4~~l°J 3700.001 60.934 251.535 2335.62 2539.52 3800.001 60.934 251.535 2384.20 2626.92 3900.001 60.934 251.535 2432.78 2714.33 4000.001 _. .0,~ 60.934 ~ 251.535 ,. 2481.36 2801.74 4200.001 60.934 251.535 2578.53 2976.55 4300.001 60.934 251.535 2627.11 3063.95 4400.001 60.934 251.535 2675.69 3151.36 4500.OOfi 60.934 251.535 2724.27 3238.77 ated stat ion North [feet] East [feet] Grid Fast [us survey feet] Grid North [us survey feet] DLS [°/100ft] Build Rate [°/100ft] -389.08 -1165.18 221210.00 2245483.82 0.00 0.~ -416.76 -1248.09 221126.48 2245458.06 0.00 0.1 -444.45 -1331.00 221042.96 2245432.29 0.00 0.1 -472.13 -1413.90 220959.44 2245406.53 0.00 0.1 -527.50 -1579.71 220792.40 2245355.00 0.00 0.1 -555.18 -1662.62 220708.88 2245329.23 0.00 0.1 -582.87 -1745.53 220625.36 2245303.47 0.00 0.1 -610.55 -1828.43 220541.84 2245277.70 0.00 0.1 -665.92 -1994.24 220374.79 2245226.17 0.00 0.1 -693.60 -2077.15 220291.27 2245200.40 0.00 0.1 -721.28 -2160.06 220207.75 2245174.64 0.00 0.1 -748.97 -2242.96 220124.23 2245148.87 0.00 0.1 -77~ z . t~. K`I ~._. ~' uirt*wi ..: 3" ~ l 23.11 "' ,~ 0.1 -804.34 -2408.77 219957.19 2245097.34 0.00 0.1 -832.02 -2491.68 219873.67 2245071.58 0.00 0.1 -859.70 -2574.59 219790.15 2245045.81 0.00 0.1 -887.39 r. ~ -2657.49 ~: -2740.40„ 219706.63 ~ °' .., J,~2~ ~ ~ 2245020.05 ~~, 0.00 0.~ -942.76 -2823.30 219539.58 2244968.52 0.00 0,~ -970.44 -2906.21 219456.06 2244942.75 0.00 O.i -998.12 -2989.12 219372.54 2244916.99 0.00 O.i -1025.81 -3072.02 21.9289.02 2244891.22 0.00 0.~ Turn Rate MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 4 of 7 ~r~~~ BAKER NV6HES INTEQ Operator r ~. . t 1 MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLLPAT H DATA (1 25 station s) ~ =interpolated/e xtrapolated station MD [feet] Inclination [°] Azimuth [°] TVD ]feet] Vert Sect [feet] North ]feet] East ]feet] Grid East lus survey feet] Grid North [us survey feet] DLS l°/100ft] Build Rate °/100ft] Turn Rate l°/100ft] 4700.00 60.934 251.535 2821.43 3413.58 -1081.18 -3237.83 219121.98 2244839.69 0.00 0.00 O.C 4800.00' 60.934 251.535 2870.02 3500.98 -1108.86 -3320.74 219038.46 2244813.93 0.00 0.00 O.C 4900.001 60.934 251.535 2918.60 3588.39 -1136.54 -3403.65 218954.94 2244788.16 0.00 0.00 O.C 5000.001 ' 60.934 251.535 2967.18 3675.80 -1164.23 -3486.55 218871.42 2244762.40 . 0.00 0.00 ~~° O.C 0.00 ti ~ ~ :.,~ - ~ y~$7.90 224 5200.001 60.934 251.535 3064.34 3850.61 -1219.60 -3652.36 218704.38 2244710.87 0.00 0.00 O.C 5300.00 60.934 251.535 3112.93 3938.01 -1247.28 -3735.27 218620.85 2244685.10 0.00 0.00 O.C 5400.00 60.934 251.535 3161.51 4025.42 -1274.96 -3818.18 218537.33 2244659.34 0.00 0.00 O.C 5500.00 i ' 60.934 251.535 3210.09 ~ 4112.83 3 -1302.65 ' -3901.08 218453.81 2244633.57 0.00 0.00 O.C ~ 5600.00 .. 251.535 4200.2 ~ =~. ,~~~ 70.29 #1' ~ 5700.001 60.934 251.535 3307.25 4287.64 -1358.01 -4066.89 218286.77 2244582.04 0.00 0.00 O.C 5800.OOj 60.934 251.535 3355.83 4375.04 -1385.70 -4149.80 218203.25 2244556.28 0.00 0.00 O.C 5900.OOj~ 60.934 251.535 3404.42 4462.45 -1413.38 -4232.71 218119.73 2244530.51 0.00 0.00 O.C 6000.OOj~ ( 60.934 251.535 3453.00 4549.86 -]441.07 ~ -4315.61 218036.21 - 2244504.75 0.00 0.00 O.C i . ~~ 1~1 ~ -~ ~~. <~ ...:. , ~. ., ~ -4398 52 217952. .« •~~~~,~.~~ . 6200.00 60.934 251.535 3550.16 4724.67 -1496.43 -4481.42 217869.17 2244453.22 0.00 0.00 O.C 6273.77 60.934 251.535 3586.00 4789.14 -1516.86 -4542.58 217807.55 2244434.21 0.00 0.00 O.C 6273.77 60.934 251.535 3586.00 4789.15 -1516.86 -4542.59 217807.55 2244434.21 0.00 0.00 O.C 6300.00 60.409 251.535 3598.85 4812.01 -1524.10 -4564.27 217785.70 _ 2244427.47 2.00 -2.00 O.C ~ Ob: :~~ ~ ~~ ~~1.5 " x.. ~~.489$:09~ -4 645.92' ;_. ' 2244402:. {~- :, , - 6500.00~' 56.409 251.535 3703.60 4982.34 -1578.05 _ -4725.83 217622.94 2244377.26 2.00 -2.00 O.C 6600.OOj~ 54.409 251.535 3760.36 5064.66 -1604.12 -4803.91 217544.28 2244353.00 2.00 -2.00 O.C 6700.00' 52.409 251.535 3819.97 5144.95 -1629.55 -4880.07 217467.57 2244329.33 2.00 -2.00 O.C 6706.591 52.277 251.535 3824.00 5150.]7 -1631.20 -4885.02 217462.58 2244327.79 2.00 -2.00 O.C MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 5 of 7 r~~r~ BAKER N1~6NES INTEQ Operator ~ ~ ~ ~~> MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State ;LLPAT H DATA (12 5 stations) fi =interpolated/extrapolated st ation MD [feet] Inclinatim~ 1°J Azimuth [°] TVD [feet] Vert Sect Meet] North (feet] East feet] Grid East [us survey feet Grid North us survey feet] DLS ~°/100ft] Build Rate [°/100ft] Turn Rate ~°/100ft] 6900.00 48.409 __ 251.535. _ 3947.40 5299.04 -1678.35 -5026.23 217320.32 2244283.91 2.00 -2.00 0.1 7000.00 46.409 251.535 40]5.08 5372.66 -1701.67 -5096.05 217249.98 2244262.21 2.00 -2.00 0.1 7100.00' 44.409 251.535 4085.28 5443.87 -1724.23 -5163.60 217181.93 2244241.22 2.00 -2.00 0.1 7200.00 0 ' 42.409 40 409 251.535 _ 4157.92 ~ ~ 5512.59 -1745.99 -5228.78 217116.27 2244220.96 2.00 00 -2.00 0.1 0 _ 0. 7395.95'p . 38.490 _ t 251.535 ., 4307.00 5639.69 -1786.25 -5349.34 216994.82 2244183.49 . 2.00 -2.00 0.1 7400.001' 38.409 251.535 4310.17 5642.21 -1787.05 -5351.73 216992.41 2244182.75 2.00 -2.00 0.1 7500.00 36.409 251.535 4389.60 5702.96 -1806.29 -5409.35 216934.36 2244164.84 2.00 -2.00 0.1 7600.001- 00 ) 34.409 251.535 4471.10 5760.89 -1824.64 -5464.30 216879.00 ti 2244147.76 ~: 2.00 -2.00 0.1 1 . fi 7800.001' 30.409 251.535 4639.92 5868.07. -1858.58 -5565.96 216776.59. ~ 22441]6.17 2.00 -2.00 0.1 7900.00't 28.409 251.535 4727.02 5917.17 -1874.13 -5612.53 216729.67 2244101.70 2.00 -2.00 0.1 8000.001' 26.409 251.535 4815.79 5963.20 -1888.71 -5656.19 216685.68. 2244088.13 2.00 -2.00 0.1 8100.001 24.409 251.535 4906.12 6006.11 -1902.30 -5696.89 216644.68 2244075.48 2.00 -2.00 0.1 ;001' ,. ~ i .' ~, SYY~ y ;..a ~ "a Yki _" ie.. ~.~ k;.~. / / ~~ wt. 8300.001' 20.409 251.535 5090.97 6082.33 -1926.45 -5769.19 216571.84 2244053.01 2.00 -2.00 0.1 8400.001' 18.409 251.535 5185.29 6115.56 -1936.97 -5800.71 216540.09 2244043.22 2.00 -2.00 0.1 8500.OOj' 16.409 251.535 5280.70 6145.48 -1946.45 -5829.09 216511.50 2244034.40 2.00 -2.00 0.1 8600.001• 14.409 251.535 5377.10 6172.05 -1954.86 -5854.29 216486.11 2244026.56 2.00 -2.00 0.1 -5.24 -1~~=: ~~ ~ 2244019.73 ~~.: -2.00 °1 8800.00' 10.409 251.535 5572.39 6215.02 -1968.47 -5895.05 216445.05 2244013.90 2.00 -2.00 O.i 8900.001• 8.409 251.535 5671.04 6231.37 -1973.65 -5910.56 216429.43 2244009.08 2.00 -2.00 O.i 9000.001' 6.409 251.535 5770.20 6244.27 -1977.73 -5922.79 216417.11 2244005.28 2.00 -2.00 0.1 9100.OOt 4.409 251.535 5869.75 6253.69 -1.980.72 -5931.73 216408.10 2244002.50 2.00 -2.00 O.i T2 ELLPAT H DATA ( 125 stations) ~ =in terpolate d/extrapola ted station MD Meet] Inclination ~°1 Azimuth ~°1 TVD ~feetJ Vert Sect Meet] North Meet] East [feet] Grid Fast lus surve feet] Grid North lus survey feet] DLS °/100ft] Build Rate [°/100ft] Turn Rate ~°/100ft] 9300.OOj' 0.409 251.535 6069.53 6262.10 -1983.38 -5939.70 216400.07 2244000.02 2.00 -2.00 0.0 9320.47 0.000 251.535 6090.OOI 6262.17 -1983.41 -5939.77 216400.00 2244000.00 2.00 -2.00 0.0 9400.00 0.000 0.000 6169.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 9500.00' 0.000 0.000 00 6269.53 3 6 6262.17 262 -1983.41. ~ -5939.77 216400.00 ` 2244000.00 ' 0.00 0.00 t=' 0 00 0.0 9700.OOt :~~~": 0.000 0.0 0.000 63 _ 6469.53- b 1 6262.17 _ -1983.41 -5939.77 _. _ 216400.00 _ ' __ ~ . 2244000.00 0.00 . 0.00 ,; 0.0 9800.00- 0.000 0.000 6569.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 9900.00 0.000 0.000 6669.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 10000.00' 0.000 0.000 6769.53 6262.17 17 b2 -1983.41 19 -5939.77 T 216400.00 ~ 00 2244000.00 2244 ~ 0.00 = 0.00 0 00 ~ 0.0 1010. 10200.00' _~~~ 0.000 :, 0.000 6969.53 . ,. 6262.17 - Z( . -1983.41 s,._. -5939.77 ~: .,, 216400.00 .,E ~ : 2244000.00 v~ 0.00 . : _. 0.00 0.0 10300.00 0.000 0.000 7069.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00' 0.00 0.00 0.0 10400.00' 0.000 0.000 7169.53 6262.17 -1.983.41 -5939.77_ 216400.00 2244000.00 0.00 0.00 0.0 10500.00' ' 0.000 ~ X 0.000 0 ~ ` °: 7269.53. 36 6262.]7 -1983.41 -5939.77 39 7 216400.00 ` 2244000.00 ~ 0.00' 0.00 =x 00 _ 0.0 10600.00 ] 0700.00'i~ ~~ ° 0.000 0.00 A . 0.000 7 ; 7469.53 6262.17 ~ ._,. -1983.41 7 X9 . -5939.77_ ~ 216400.00 - . r . z 2244000.00 ' 0.00 0. 0.00 _ 0.0 10800.00 0.000 0.000 7569.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 10900.00' 0.000 0.000 7669.53 6262.17 -1983.41 -5939.77 2]6400.00 2244000.00 0.00 0.00 0.0 11000.00' 1ll00.00j~ 0.000 '~ 4M1 0.000 ,-__ 0.000 7769.53 7869.53; 6262.17 , ~. -1983.41 e`" -5939.77 ~ -5939.77 216400.00 ,`. 2244000.00 0.00 '_ ~ 0.00 ~ ~`' 0.00 0.0 ' 1 l 200.00 i 0.000 0.000 7969.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 11300.00' 0.000 0.000 8069.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 11400.OOj' 0.000 0.000 8169.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 11500.OOt 0.000 0.000 8269.53 6262.17 -1983.41 -5939.77 216400.00 2244000.00 0.00 0.00 0.0 - Tvonek T3 Planned Wellpath Report gp «~"~ KER Wellpath: NS#2 Ver 1 N~16NES MARATHON Page 6 of 7 INTEQ MARATHON Planned Wellpath Report Wellpath: NS#2 Ver 1 Page 7 of 7 r~.r BAKER HV6HES INTEQ P ~ Operator B ~ • • k. MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver I Facility Ninilchik State HOLE & CASING SECTIONS Ref Wellbore: NS#2 Ver 1 Ref Wellpath: NS#2 Ver 1 String/Diameter Start MD [feet] End MD Meet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet) 9.625in Casing Surface 0.00 1600.00 1600.00 0.00 1315.40 0.00 0.00 -222.97 -667.75 Tin Casing Interniediate 0.00 6096.75 6096.75 0.00 3500.00 0.00' 0.00 -1467.85' -4395.82 4.Sin Liner 0.00 11534.47 11534.47 0.00 8304.00 0.00 0.00 -1983.41 -5939.77 TARGETS Name MD [feet] TVD [feet] North [feet] East [feet] Grid East bus survey feet] Grid North [us survey feet] Latitude (°] Longitude ~°~ Shape NS#2 T k 4/18/06 3824.00 -1.983.41 -5939.77 216400.00 2244000.00 60 08 00.035N l51 33 20.1O5W circle yone - NS#2 T k T2 BIG 4/18/06 4307.00 -1983.41 -5939.77 216400.00 2244000.00 60 08 00.035N 151 33 20.1 OSW circle yone - 1 NS#2 T k T3 4/18/06 9320.47 6090.00 -1983.41 -5939.77 216400.00 2244000.00 60 08 00.035N 151 33 20.1O5W circle ) yone - SURVEY PROGRAM Ref Wellbore: NS#2 Ver 1 Ref Wellpath: NS#2 Ver 1 Start MD Meet] End MD ~fect~ Tool Type Positional Uncertainty Model _ ~ ~ ~~ Log Name/Comment ~~'ellbore 0.00 11534.47 ~Navi41°ak aviTrak (~t~~d~~-4~ ~ ~ _~_ ', rJ~#?, ~~:- 1 MARATHON Oil Company BAKER`- M Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #2 N~IGFIES Fiekl: Ninilchik Field Well: NS#2 INTEQ MARATHON Facilit : Ninilchik State Wellbore: NS#2 Ver ~ vm ,m~mm ..w.m ~ nsn v« , r,.,...«m.i a.w..~ M«.m.a m r+°,w , Rn c~ ~ om er..R wen (iu um. am w... v... (saa~, ue ~.. 1larum amm N M~rroa m GYar ~ Rn (PIS Moth ParNS Thu nam (Y°acr 1 RBI (~ m Wn er lsnt m Mt BoYm Tiu° amity m.n 9r lw.l b Ytl F° (F Ily ~ Niat 9su} 0 Ir[ u~ m M C~ r• h MI tiYY1u0 b Bm1 ~. GYM . Yllntla an NYfOOE Traveling Cylinder: Map North 0' ~~?J 180ff 330' 30' tsotr ~----- `.. t4ofr '~_ j ~ ~ - ~ 12ofr ~- 300' ~ ~~ ,~~ ~-'- ~ toorr ~~ ~~~ ~ 60' / ~~ .-_ ~\ ~ t i h ~ ~ 8ofr ~ ~ ~ ~ '' i~ ~ i ~ sort ~ ~~ '•~ !~ ~ ~ ~ ~ ~i ~ 40ft ~~ ., ~ ~ , I ~ ~ ~ ~~ ~ ~ ~ , ~ ~~ ~ ~ % ~ ~ ~ ~~~~- V ~ ~, 1 .5.--t ~. 20ft 1 ft 1 ft '~ 9~ ° 20ft ~ 1 r ~,i i l ~ ~ ~ ~ ~ ~~ ~ ~ ~ I ~~~~ ~ ~ ~` aofr ~~~~ 1 ~~ f~ , l ~, ~~ ~ ~ ~ ~ `~ ~ X ~ /` .~ ~: ~ -7 ~ ~ / ~ ~ ~ \ ~ ri ~' i i ~ ~ 240 ~ ~ ~ \`~_ toofr ~~ / ~ ~ 20 ° ~ ~ ~, '\ ~ , ' / i ~~~ \, t2ofr ~~~ ~~ ~~ ~~ 160f t ~ ~~ 210° 150' f80ff sty. ~ tmn . so n All Depths shown are Meas80ed Depths on Reference Wel; M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 1 of 27 ~t~~ BAKER NY6NE~r INTEQ e ~ '; Operator w r ` ` MARATHON Oil Company Slot ' .A ~_ ... Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 'Field Ninilchik Field Wellbore NS#2 Ver 1 'Facility Ninilchik State Projection System NAD27 / TM Alaska State Plane, Zone 4 (5004), US feet Software System We1lArchitectTM 1.1 North Reference True User Suthstud Scale 0.999988 Report Generated 5/1/2006 at 09:47:52 Wellbore last revised 4/18/2006 Database/Source file WA-Anchora~e/NS#2 Ver l.xml Ellipse Confidence Limit 3.00 Std Dev Ellipse Start Depth . 0.00 feet Surface Position Uncertainty included Declination 19.35° East of TN Dip Angle 73.07° Magnetic Field Strength 55234 nT POSITIONAL UNCERTAINTY CALCULATION SETTINGS M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 2 of 27 rr~~r~ sa~c~R Nu6N~~ INTEQ ANTI-COLLISION RULE Rule Name E-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 w/Surface Uncert Rule Based On Ellipsoid Separation Plane of Rule Closest Approach Threshold Value 0.00 feet Subtract Casing & Hole Size ' yes Apply Cone of Safety no HOLE & CASING SECTIONS R ef Wellbore: N S#2 Ver 1 Itef Wellpath: NS #2 Ver 1 String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 9.625in Casing Surface 0.00 1600.00 1600.00. 0.00 1315.40 0.00 0.00 -222.97 -667.75 Tin Casing Intermediate 0.00 6096.75 6096.75. 0.00 3500.00 0.00 0.00 -1467.85 -4395.82 "4.Sin Liner 0.00 11534.47 11534.47 0.00 8304.00 0.00 0,00 -1983.41 -5939.77. ~SURVEY~PROGRAM Ref Wellbore: NS#2 Ver 1 Ref Wellpath: NS#2 Ver I Start MD feetl End MD [feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 11534,47. aviTrak aviTrak Standard) S#2 Ver 1 MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 3 of 27 rf~r~ BAKER I~IV6NES INTEQ Operator MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CALCULATION RANGE & CUTOFF From: 0.00 MD To: 11534.47 MD C-C Cutoff: 500.00 feet OFFSET WELL CLEARANCE SUMMARY (18 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min C-C Diverging Ref MD of Min EII Min EII Sep ACR Facility Slot R'ell R'ellbore Wellpath MD Clear Dist from MD Min EIl Sep Sep Dvrg From Status Meet] Meet] [feet] Meet] Meet] [feet] Clam Shell Pad Slot #1 Abalone #1 Abalone #1 MWD<0 - 10356> 0.00 39067.58 0.00 0.00 38766.37 0.00 PASS Corea Creek Federal Slot #1 CCF#1 CCF#1 MWD <0-9738> 0.00 22597.71 0.00 0.00 22296.67 0.00 PASS Falls Creek Unit Slot #1 Falls Creek Unit #1 Falls Creek Unit #1 MSS <0-13785> 0.00 29172.06 0.00 0.00 28868.58 0.00 PASS Falls Creek Unit Falls Creek Unit Slot #1 Slot #4 Falls Creek Unit #1 FC #4 ` Falls Creek Unit #1Rd FC #4 PGMS <3075 - 8900> MWD <0-7910> 0.00 0.00 28768.55 26784.93 0.00 0.00 0.00 0.00 28458.01 26432.95 0.00. 0.00' PASS PASS MGO MGO #1 MGO #1 MGO #1 MWD<0-11600'> 0.00 11659.12 0.00 0.00 11358.48 0.00 PASS MGO MGO #2 MGO #2 MGO #2 PGMS<0-2500'>MWD<2523-12026'> 0.00 10444.84 0.00 0.00 10101.94 0.00 PASS MGO ~ MGO #13 # MGO #3 ~MGO#4 MGO #3 MGO#4 MWD <0-13771> MWD <0 8175> 0.00 0 00 8(,85.14 11479 53 0.00 00 0 0.00 ~ 0 00 8190.25 ~ 11178 33 0.00 0 00 PASS PASS MGO MGO MGO 4 SoCal Falls Creek SoCal Falls Creek SoCal Falls Creek - MSS <0-8256'> . 0.00 . 9847.69 . 0.00 . 0.00 . 9546.64 . 0.00 PASS MGO Texaco Ninilchik #1 Texaco Ninilchik #1 "Texaco Ninilchik #1 MSS <0-12903'> 0.00 10667.73 0.00 0.00 10366.66 0.00 PASS Ninilchik State Slot #1 NS#] NS#1 MWD <0-]0346> 0.00 70.29 0.00 0.00 57.06 0.00 PASS Paxton Pad Slot#1 Paxton#1 Paxton#1 MWD<0-10115> 0.00 21485.17 0.00 0.00 21139.84 0.00 PASS Susan Dionne SD #2 ~, SD #2 SD #2 MWD <0-] ] 094> 0.00 12836.15 0.00 0.00 ] 25 ] 3.96 0.00 PASS Susan Dionne SD #3 SD #3 SD #3 MWD <0-10255> 0.00 13138.43 0.00 0.00 12837.38 0.00 PASS Susan Dionne SD #4 SD #4 SD #4 MWD <0-11953> 0.00 13109.76 0.00 0.00 12808.28 0.00 PASS M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 4 of 27 ~~ BAKER N~1t~NES INTEQ !. ",:Operator ! . ' . MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: Abalone #1 Offset Wellpath: MWD<0 - 10356> Facility: Clam Shell Pad Slot: Slot #1 Well: Abalone #1 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR feet feet feet feet feet feet feet -feet ° feet feet feet ~ Status 0.00 0.00 0.00 0.00 3019.47 2744.09 32064.18. 22150.26 34.64 39067.58 38766.37 301.21. PASS C-C Clearance Distance Cutoff: SOO.OO feet HOLE & CASING SECTIONS .Offset Wellbore: Abalone #1 Offset Wellpath: MWD<0 -10356> Strine/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W 17.Sin Open Hole 0.00' 2210.00' 2210.00 -134.13: 1965.39 20012.53 13549.92 19846.17 13524.90 12.25in Open Hole 2210.00 4350.00 2].40.00 1965.39 4074.04 19846.17 13524.90 19775.93 13519.22 6.125in Open Hole 4350.00 10356.00 6006.00 4074.04 10068.34' 19775.93 13519.22 19848.72. 13495.28 20in Conductor 0.00 170.00 170.00 -134.13 35.87 20012.53 13549.92 20012.62 13549.82 13.375in Casing 0.00 2208.00 2208.00 -134.13 1963.57' 20012.53 13549.92 19846.42 13524.93 9.625in Casing 0.00, 4336.00' 4336.00 -134.13 4060.04' 20012.53 13549.92 19776.00 13519.17, WELLPATH COMPOSITION Offset Wellbore: Abalone #1 Offset Wellpath; MWD<0 - 10356> Start MD feet End MD Tool Type feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 10356.00 NaviTrak NaviTrak (Standard) MWD<0 - 10356> Abalone #1 M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 5 of 27 ~r~ BAKER ~uc~HE~ INTEQ ;'• 'Operator ~, i 0 MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) __ Well NS#2 ;Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State OFFSET WELLPATH MD REFERENCE -Offset Wellbore: Abalone #1 Offset Wellpath: MWD<0 -10356> 1MD Reference: Glacier #1 (RKBI IOffset TVD & local coordinates use Reference Wellpath settinQS 1 • M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 6 of 27 ~~~~ BAKER ~IY6NEl~ INTEQ ,_ ~ Operator ~ r ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbare NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: CCF#1 Offset Wellpath: MWD <0-9738> Facility: Corea Creek Federal Slot: Slot #1 Well: CCF#1 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist .Ellipse Sep ACR MASD ACR feet feet feet feet feet feet feet feet ° feet feet feet r Status 0.00 ~~ 0.00 0. 00 0.00 0.00 69.00 18403.61 13113.32 35.47 22597.71 22296.67 301.04 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: CCF#1 Offset Wellpath: MWD <0-9738> Start MD feet] End MD feet] Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 9738.00 NaviTrak NaviTrak (Standard) MWD <0-9738> CCF#1 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: CCF#1 Offset Wellpath: MWD <0-9738> IVID Reference: Datum #2 (RKB) Offset TVD & local coordinates use Reference Wellpath settings C7 MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 7 of 27 ~~~~ BAKER NYt~NE+~ INTEQ ., 'Operator ~ ~ ~ ~ .. , ~ MARATHON Oil Company ~- .~ a .. m Slot Slot #2 Area. Cook inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: Falls Creek Unit #1 Offset Wellpath: MSS <0-13785> Facility: Falls Creels Unit Slot: Slot #1 WeIL• Falls Creek Unit #1 Threshold Value=0.00 feet t =interpolated/extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing GC Clear Dist Ellipse Sep ACR MASD ACR feet feet [feet] jfeetl ~ [feet] [feet] [feet] [feet] [°] [feet] Meet] [feed :Status 0.00 0.00 0.00 0.00 4639.86 4431.63 23832.54 16228.98 34.25 29172.06 28868.58 303.48 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: Falls Creek Unit #1 Offset Wellnath: MSS <0-13785> Start MD feet End MD feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 13785.00 Photomechanical Ma netic Photomechanical Ma netic (Standard) MSS <0-13785> Falls Creek Unit #1 i OFFSET WELLPATH MD REFERENCE -Offset Wellbore: Fa11s Creek Unit #1 Offset Wellpath: MSS <0-13785> MD Reference: Glacier #1 (RKB) .Offset TVD & local coordinates use Reference Wellpath settings • M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 8 of 27 r~'r saKER ~uc~N~s INTEQ .. ~ s _; Operator MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 'Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: Falls Creek Unit #IRd Offset Wellpath: P(GMS <3075 - 8900> ' Facility: Falls Creek Unit Slot: Slot #1 Well: Falls Creek Unit #l Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD .Offset TVD ,Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASll ACR feet feet [feet] [feet] [feet] [feet] N [feet] [feet] [°] ~ feet [feet] [feet] Status 0.00 0.00 0.00. 0.00 5760.97 5108.24 23930.63 15128.12 32.30 28768.55 28458.01 310.54 PASS C-C Clearance Distance Cutoff: 500.00 feet WF.1.I:PATH CnMPOSiTinN offset Wellhnre: Falls Creek ilnit #1Rd Offset Wellnath: P(~'MS <i075 - R900> Start MD feet End MD feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 3074.84 Photomechanical Ma netic Photomechanical Ma netic Standard) MSS <0-13785> Falls Creek Unit #1 3074.84 8900.00 SRG SRG (Standard) ~ PGMS <3075 - 8900> Falls Creek Unit #1Rd OFFSET WELLPATH MD REFERENCE - Offset Wellbore: Falls Creek Unit#1Rd Offset Wellpath: P(GMS <3075 - 8900> _ ~MD Reference: Glacier #1 (RKBI .Offset TVD & local coordinates use Reference Wellpath settin,~s MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 9 of 27 r~rr BAKER ~u6H~s INTEQ • ;Operator ~, e o MARATHON Oil Company Slot Slot #2 'Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellborec FC#3 Offset Wellpath: MWD <0-10668> Facility: Falls Creek Unit Slot: Slot #3 Well: FC#3 Threshold Value=O.OO feet t =interpolated/extrapolated station Ref MD Ref TVll Ref North Ref East Offset Mll Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASll ACR feet feet feet feet ~ feet feet feet feet ~ ° feet feet ~ feet Status 0.00 0.00. 0.00 0.00 8110.93 5824.97 23078.72. 12064.97 27.60 26685.59 26307.92 377.68 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: FC#3 Offset Wellpath: MWD <0-10668> Start MD feet] End MD Tool Type [feet] Positional Uncertainty Model Log Name/Comment Wellbore 0.00 10668.00 NaviTrak Na~iTrak a corrl) MWD <0-10668> FC#3 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: FC#3 Offset Wellpaths MWD <0-10668> I MD Reference: Glacier 1 (BKBI Offset TVD & local coordinates use Reference Wellpath settings M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 10 of 27 ~r~~~ BASER ~u6N~s INTEQ ;s a ,;.Operator ~ ' MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well __ NS#2 `Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: FC #4 Offset Wellpath: MWD <0-7910> Facility: Falls Creek Unit Slot: Slot #4 Well: FC #4 Threshold Value=0.00 feet '~ =interpolated/extrapolated station ~ Ref MD Ref TVll Ref North Ref East Offset MD Offset TVD ,Offset North Offset East Horiz Bearing C'-C Clear Dist Ellipse Sep ACR MASD ACR [feet] [feet] feet feet z feet s feet feet feet ° feet feet feet ~ Status 0.00 0.00 0.00 0.00 7648.60 5693.64 22872.90 12721.83 29.08 26784.93 26432.9 351.95: PASS C-C Clearance Distance Cutoff: 500.00 feet _ __ WF1.I.PATH (`.nMPnfiiTlnN offset Weilhnre: FC #4 offset Wellnath: MWD <0-7910> Start MD feet End MD [feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore `: 0.00 ' 7648.60 NaviTrak NaviTrak (Ma corrl MWD <0-7910> FC #4 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: FC #4 `Offset Wellpath: MWD <0-7910> _~ MD Reference: RKB (Nabors 1291(RKBI Offset TVD & local coordinates use Reference Wellpath settings • MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 11 of 27 ~~~~ BAKER 1~1Y6NES INTEQ Operator ~, ~ MARATHON Oil Company ~.r Slot ~~ ~~, Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 'Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: MGO #1 Offset Wellpath: MWD<0-ll600'> Facility: MGO Slot: MGO #1 Well: MGO #1 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref Mll Ref TVD Ref North Ref East Offset Mll Offset TVD Offset North .Offset East Horiz Bearing C'-C Clear Dist Ellipse Sep ACR MASD I ACR feet feet feet feet] feet ~ feet feet feet ° feet feet feet ~~ Status. 0.00 O.Otr 0.00 0.00 12.25 -5.75. 9615.75 6593.36 34.44 11659.12 11358.48 300.64 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: MGO #1 Offset Wellnath: MWD<0-11600'> Start MD End MD feet] feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 11600.00 NaviTrak NaviTrak Standard) MWD <0-11600'> MGO #1 OFFSET WELLPATH MD REFERENCE -Offset Wellbore: MGO #1 Offset Wellpath: MWD<0-11600'> MD Reference: Glacier #1 (RKB) .Offset TVD & local coordinates use Reference Wellpath settings MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 12 of 27 ~~~~ satc~R __1fY6N_E~ INTEQ ;:Operator ,. ~ ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well ' NS#2 __ =Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: MGO #2 Offset Wellpath: PGMS<0-2500'>MWD<2523-12026'> Facility: MGO Slot: MGO #2 Well: MGO #2 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD ,Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR feet feet ~ feet feet feet feet feet feet ° feet feet ~ feet Status~~ 0.00 0.00. 0.00 0.00 6606.01 3738.57 9591.11 1768.75 10.45 10444.84 10101.94 342.90 PASS C-C Clearance Distance Cutoff: 500.00 feet '„WL+LLYAItl l,V1VIYV~lIIVIr VIISCI WetlVOre: 1v1hV AFL VIISeT welt Gill: Yh1Vla~V-L,VU'~1v1WL~L'LJ-1LVL0'~ Start MD feet End MD feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 2500.00 G rodata standard -Continuous ro G rodata standard -Continuous ro PGMS <0-2500 MGO #2 2500.00 12026.00 NaviTrak NaviTrak (Standard) MWD<2523-12026'> MGO #2 OFFSET WELLPATH MD REFERENCE- Offset Wellbore: MGO #2 Offset Wellpath: PGMS<0-2500'>MWD<2523-12026'> MD Reference: Glacier #1 (RKBI Offset TVD & local coordinates use Reference Wellpath settings MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 13 of 27 ~r~r sa~c~R MY6I~IES INTEQ ', Operator ,. ~ ~ MARATHON Oil Company .Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: MGO #3 Offset Wellpath: MWD <0-13771> Facility: MGO Slot: MGO #3 Well: MGO #3 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref Mll Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR Ifeetl . Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl ~ Ifeetl I°1 ffeetl Ifeetl Ifeetl ~ Status 0.00 0.00: 0.00 0.00 8366.34. 3779.74• 7816.25 -226.5(1 358.34 8685.14 8190.25 494.88. PASS C-C Clearance Distance Cutoff: 500.00 feet HOLE & CASING SECTIONS Offset Wellbore: MGO #3 Offset Wellpath: MWD <0-13771> String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD Ifeetl Start N/S [feet] Start E/W [feet] End N/S [feed End E/W [feetl 12.25in Open Hole 0.00 2508.00 2508.00. -18.00 1754.50 5787.75 3962.55 5685.20 3535.91 8.Sin Open Hole 2508.00 7332.00 4824.00 1754.50 3409.96 5685.20 3535.91 5345.14 2197.79 6.125in Open Hole 7332.00 13771.00.: 6439.00 3409.96 8128.95 5345.14 2197.79 5052.43 1052.03 20in Conductor 0.00. 99.00 99.00 -18.00 81.00 5787.75 3962.55. 5787.87. 3962.64.. 9.625in Casing Surface 0.00 2507.00 -...~... 2507.00 -18.00 1754.15: 5787.75. 3962.55 5685.27 3536.19 Tin Casing Intermediate 0.00 7320.00'. 7320.00 -18.00 3405.86.. 5787.75. 3962.55 5346.04 2201.11 3.Sin Liner 0.00 13771.00 13771.00 -18.00 8128.95' 5787.75 3962.55 5052.43 1052.03'.. WELLPATH COMPOSITION Offset Wellbore: MGO #3 Offset Wellpath: MWll <0-13771> Start MD feet End MD feet `1'001 `Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 13771.00 NaviTrak NaviTrak (Magcorrl) i~~1WD <0-13771> MGO #3 M MARATNON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 14 of 27 rr~~r BAKE R ~u~NEs INTEQ #. ,. ~ ~ s Operator MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) . Well NS#2 !.Field Ninilchik Field Wellbore NS#2 Ver 1 ?Facility Ninilchik State OFFSET WELLPATH MD REFERENCE -Offset Wellbore: MGO #3 Offset Wellpath: MWD <0-13771> MD Reference: Glacier 1 (RKB) (RKB) Offset TVD & local coordinates use Reference Wellpath settings MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 15 of 27 ~~~ BAKER I~Y6NES INTEQ CLEARANCE DATA -Offset Wellbore: MGO#4 Offset Wellpath: MWD <0-8175> ~ Facility: MGO Slot: MGO#4 Well: MGO#4 Threshold Value=0.00 feet ~- =interpolated/extrapolated station _ Ref Mll Ref TVD fi Ref North '= Ref East Offset MD 'Offset TVD Offset North ~ Offset East Horiz Bearing C-C Clear Dist Ellipse Scp ACR MASDv ~ ACR feet feet ~ feet ~ feet feet feet feet feet ~ ° feet lfeetl [feet] s Status 0.00 0.00 0.00 0.00 4.94 -13.06 9437.16 6536.02 34.71 11479.53 11178.33 301.20 PASS C-C Clearance Distance Cutoff: 500.00 feet HOLE & CASING SECTIONS Offset Wellbore: MGO#4 Offset Wellpath: MWD <0-8175> String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] 12.25in Open Hole 120.00' 3300.00 3180.00 101.98 1456.27 B.Sin Open Hole 3300.00'. 8175.00 4875.00 1456.27 4809.69 13.375in Conductor 0.00 116.00 116.00 -18.00: 97.98 9.625in Casing 0.00: 3283.00'. 3283.00 -18.00! 1452.82 3.Sin Liner 0.00' 8175.00 8175.00 -18.00 4809.69 WELLPATH COMPOSITION Offset Wellbore: MGO#4 Offset Wellpath: MWD <0-8175> Start N/S 1 Start E/W I End N/S I End E/VV 5754.53' 3982.85 6187.63 3359.16 6187.63' 3359.16. 6758.46 2509.56 5753.95 3982.80 5754.49 3982.85 5753.95. 3982.80 6185.17 3363.60 5753.95 3982.80 6758.46 2509.56 Start MD End MD Tool Type Positional Uncertainty Model Log Name/Comment Wellbore feet feet 0.00 1686.00 NaviTrak NaviTrak (Magcorrl) MWD <0-1686> MGO#4 1686.00 3225.00 NaviTrak NaviTrak (Standard) MWD <1748-3225> MGO#4 3225.00 3480.00 NaviTrak NaviTrak (Ma corrl) MWD <3292-3480> MGO#4 3480.00 8175.00 NaviTrak NaviTrak (Standard) MWD <3543-8175> MGO#4 M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 16 of 27 r~r~r~ BAKER wu6NEs INTEQ _~ Operator ~, 1 MARATHON Oil Company Slot Slot #2 ::Area Cook inlet, Alaska (Kenai Penninsula) Well NS#2 `Field Ninilchik Field Wellbore NS#2 Ver 1 ', Facility Ninilchik State OFFSET WELLPATH MD REFERENCE -Offset Wellbore: MGO#4 Offset Wellpath: MWD <0-8175> `MD Reference: Datum #2 (RKB) Offset TVD & local coordinates use Reference Wellpath settings • MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 17 of 27 ~~~ BAKER ~u~NEs INTEQ Operator .. n. ~~ ~ . . .. ~ ~ ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: SoCal Falls Creek Offset Wellpath: MSS <0-82.56'> Facility: MGO Slot: SoCal Falls Creek Well: SoCal Falls Creek Threshold Value=0.00 feet ~=interpolated/extrapolated station Ref 1VID Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASll ACR feet feet feet feet feet feet feet feet ° feet feet feet Status 0.00 0.00 0.00 0.00 31.49 10.49 8004.52 5736.24 35.63 9847.69 9546.64 301.04 PASS C-C Clearance Distance Cutoff: 500.00 feet ~.: ~WELLPATH COMPOSITION Offset Wellbore: SoCal Falls Creek Offset Well ath: MSS <0-8256'> Start MD feet End Ml) feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 8256.00 Photomechanical Ma netic Photomechanical Ma netic (Standard MSS <0-8256'> SoCal Falls Creek OFFSET WELLPATH MD REFERENCE -Offset Wellbore: SoCal Falls Creek Offset Wellpath: MSS <0-8256'> MD Reference: Datum #2 (RKB) Offset TVD & local coordinates use Reference Wellpath settings M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 18 of 27 ~~~ BAKER __HU6~Es INTEQ s e "Operator r , , MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 ::Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: Texaco Ninilchik #1 Offset Wellpath: MSS <0-12903'> Facility: MGO Slot: Texaco Ninilchik #1 Well: Texaco Ninilchik #1 Threshold Value=0.00 feet -~ =interpolated/extrapolated station Ref MD Ref TVD Ref North Kef East ,Offset MD Offset TVD Offset North Offset East Horiz Bearing C'-C Clear Dist Ellipse Sep ; ACR MASD ACR [feet] [feet] [feet] [feet] ~ [feet] [feet] ~ [feet] ~ [feet] [°] [feet] feet a feet Status 0.00 0.00 0.00 0.00 3733.77 3196.91 8986.33 4777.67 28.00 10667.73 10366.66 301.07 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: Texaco Ninilchik #1 Offset Wellpath: MSS <0-12903'> Start MD End MD feet feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 12903.00 Photomechanical Ma netic Photomechanical Ma netic Standard) MSS <0-12903'> . Texaco Ninilchik #1 OFFSET WELLPATH MD REFERENCE- Offset Wellbore: Texaco Ninilchik #1 Offset Wellpath: MSS <0-12903'> MD Reference: Datum #2 (RKBI Offset TVD & local coordinates use Reference Wellpath setfinQs • M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page ] 9 of 27 ~i~~ BAKER HV6NES INTEQ Operator ~ ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State ~LEARANCE DATA -Offset Wellbore: NS#1 Offset Wellpath: MWD <0-10346> +acility: Ninilchik State Slot: Slot #1 Well: NS#1 Threshold Value=0.00 feet ~- _ Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl Ifeetl nterpolated/extrapolated station Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR I°1 Ifeetl Ifeetl Ifeetl Status 0.00 0.00 0.00 0.00 0.00 0.00 59.49 37.45 32.19 70.29 57.06 13.23 PASS 100.00j~ 100.00 0.00 0.00 99.47 99.47 59.65 37.88 32.42 70.67 57.86 12.81 PASS 200.00 f 200.00 0.00 0.00 199.23 199.22 60.15 39.00 32.96 71.69 58.85 12.84 PASS 250.00 250.00 0.00 0.00 249.42 249.41 60.58 39.27 32.95 72.20 59.33 12.86 PASS j `{ 400.OOt 399.57 -3.11 -9.30 400.01 399.90 63.85 35.51 33.79 80.57 66.58 13.99 PASS SOO.OOt 498.02 -8.60 -25.76 499.94 499.50 67.60 28.50 35.46 93.56 78.62 14.95 PASS 600.00 594.58 -16.80 -50.31 600.33 598.79 73.99 15.35 35.87 112.12 96.18 15.94 PASS 700.00-1 688.52 -27.63 -82.74 702.63 698.33 82.55 -6.52 34.68 134.33 117.28 17.05 PASS 900.OOfi 865.70 -56.84 -170.22 900.13 882.46 106.51 -72.87 30.79 190.90 170.91 19.98 PASS 1000.00j~ 947.59 -75.00 -224.61 994.77 965.08 123.60 -115.68 28.75 227.19 204.97 22.22 PASS 1100.00 1024.17 -95.35 -285.56 1096.16 1048.60 143.42 -169.56 25.91 266.58 241.29 25.29 PASS 1200.OOt 1094.86 -117.74 ~ 1 -352.61 '` 1192.06 1123.30 162.05 .,, -226.72 24.23 308.12 279.07 29.05 PASS __ VR. ~ X 42.00 _ .. ;„ $~ - :.:'~- ~ ,. ,~ ~.~'; µ 1400.OOt 1216.46 -167.93 -502.92 1362.22 1246.19 200.00 -337.95 24.15 404.32 366.70 37.62 PASS 1468.68 1251.60 -186.62 -558.87 1420.16 1284.85 2]4.97 -378.43 24.20 441.52 400.49 41.03 PASS 1500.OOfi 1266.82 -195.29 -584.84 1445.50 ]301.38 22].71 -396.42 24.32 458.90 416.31 42.59 PASS C-C Clearance llistance Cutoff: 5011.1111 feet MARATHON • Operator ~, 1 MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State HOLE & CASING SECTIONS Offset Wellbore: NS#1 Offset Wellpath: MWD <0-10346> Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 20 of 27 ~~~ BAKE R r~uc~NEs INTEQ • String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W Meet] End N/S [feet] End E/W [feet] 12.25in Open Hole 0.00. 1745.00 1745.00 0.00 1479.08 36.26 22.83 112.53 -177.70 8.Sin Open Hole 1745.00. 5580.00 3835.00 1479.08' 3514.07'. 112.53 -177.70 458.63' -1102.78 6.125in Open Hole 5580.00 10346.00 4766.00 3514.07': 8103.72 458.63 -1102.78 558.65: -1328.76 20in Conductor 0.00 87.00 87.00 0.00' 87.00 36.26 22.83 36.30 22.93 9.625in Casing Surface 0.00' 1744.00 1744.00 0.00 1478.53 36.26 22.83. 112.44 -177.47 Tin Casing Intermediate 0.00 5554.00 5554.00 0.00 3495.71 36.26 22.83 456.56. -1097.56 3.Sin Liner 0.00 10346.00 10346.00 0.00 8103.72 36.26 22.83 558.65. -1328.76' x.N,.~~~:~_ ~.~... ,. ;LLPATH COMPOSITION Offset Wellbore: NS#1 Start MD End MD Tool Type Offset Well ath: MWD <0-10346> Positional Uncertainty Model Log Name/Comment Wellbore 0.001 10346.00 NaviTrak NaviTrak (Maecorrl MWD <0-10346> NS#1 :OFFSET WELLPATH MD REFERENCE -Offset Wellbore: NS#1 Offset Wellpath: MWD <0-10346> MD Reference: Glacier 1 (RKBI Offset TVD ~ local coordinates use Reference Wellpath settings MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 21 of 27 ~1~~~ BAKER Nu6~E~ INTEQ :. ;Operator . ~, ~ ~ MARATHON Oil Company Slot .. .. Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well . NS#2 'Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: Paxton#1 Offset Wellpath: MWD<0-10115> ~ Facility: Paxton Pad Slot: Slot #1 Well: Paxton#1 Threshold Vah~e=0.00 feet ~ = interpolated/extrapolated station Ref MD Ref TVD Ref North Kef East Offset MD Offset TVD Offset North Offset East Iloriz Bearing C-C Clear Dist Ellipse Sep ACR MASD ACR ' ~ [feet] 3 [feet] [feet] [feet] a [feet] [feet] [feet] feet ° feet feet feet Status ~ 0.00 ~ 0.00 0.00 0.00 5056.59 3488.95 -12676.79 -16992.31 233.28 21485.17 21139.84 345.33 PASS C-C Clearance Distance Cutoff: 500.00 feet "'WF.i.i.PATN f'OMP(1SiTinN nffcet Wellhnre~ Parton#1 Offset Wellpath: MWD<0-10115> Start MD feet End MD feet Tool'i'ype Positional Uncertainty Model Log Name/Comment Wellbore 0.00 10115.00 NaviTrak NaviTrak (Ma corrl) MWD <0-10115> Paxton#1 OFFSET WELLPATH MD RF,FERENCE -Offset Wellbore: Paxton#1 Offset Wellpath: MWD<0-10115> ~MD Reference: Nabors 129 (RKB) Offset TVD & local coordinates use Reference Wellpath settings • MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 22 of 27 ~l''i~ BAKER HYQrNEB INTEQ Operator ~, 1 1 MARATHON Oil Company Slot Slot #2 i Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 !Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: SD #1 Offset Wellpath: MSS <2498-14931'> Facility: Susan Dionne Slot: SD #1 Well: SD #1 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref MD Ref TVll Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASll ACR ffeetl ffeetl ffeetl a ffeetl ffeetl ffeetl ffeetl ffeetl f°l ffeetl ffeetl ffeetl ~ Status 0.00 0.00 0.00 0.00 0.00 16.00 -9430.20 -9224.03 224.37 13191.34 12890.30 301.04 PASS C-C Clearance Distance Cutoff: 500.00 feet 'WELLPATH COMPOSITION Offset Wellbore: SD #1 Offset Wellpath: MSS <2498-14931'> Start MD feet End MD feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 14930.50 Photomechanical Ma netic Photomechanical Ma netic Standard) MSS <2498-14931> SD #1 .,OFFSET WELLPATH MD REFERENCE -Offset Wellbore: SD #1 Offset Wellpath: MSS <2498-14931'> MD Reference: Glacier #1(RKB) Offset TVD & local coordinates use Reference Wellpath settings • MaRarHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 23 of 27 ~~~~ BAKER ~u~NEs INTEQ o Operator ,. ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: SD #2 Offset Wellpath: MWD <0-l 1094> Facility: Susan Dionne Slot: SD#2 We1L• SD #2 ThresholdValue=0.00 feet ~=interpolated/extrapolated station Ref MD Ref TVD :Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASll ACR feet feet ~ feet feet feet feet feet feet ° feet feet feet Status 0.00 0.00 0.00 0.00 3594.82 2312.07.. -7262.87 -10328.21 234.89 12836.1.5 12513.96 322.20 PASS C-C Clearance Distance Cutoff: 500.00 feet riVL1G c~L 1~A~11Vlz ar.l:IlV1Va VIISeT WeIIDOre: aIl1~L VIISCT WeIl paTn: tV1WL ~U-11VY4~ String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 12.25in Open Hole 0.00 1927.00 1927.00 13.00 1588.66 -5700.43 -5582.22 -5459.96 -5712.21 8.Sin Open Hole 1927.00 5962.00 4035.00. 1588.66 3446.02 -5459.9b -5712.21 -4$12.25 -6248.64 Tin Open Hole 5962.00 11094.00 5132.00 3446.02 8019.91 -4512.25 -6248.64 -4065.30 -6770.30 9.625in Casing 0.00 1927.00 1927.00 13.00 1588.66 -5700.43 -5582.22 -5459.96 -5712.21 Tin Casing 0.00 5942.00 5942.00' 13.00 3432.91 -5700.43 -5582.22 -4516.09 -6246.10 4.Sin Casing 0.00 11094.00 11094.00 13.00 8019.91 -5700.43 -5582.22 -4065.30 - WF,LLPATH (',OMPOSITION Offset Wellhore: SD #2 offset Wellnath: MWD <Q-t i094> 6770.30' Start MD feet End Mll feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 11094.00 NaviTrak NaviTrak (SAG MWD <0-11094> SD #2 M MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 24 of 27 ~~~~ BAKER Nu~N~s INTEQ Operator ~. i ! MARATHON Oil Company Slot Slot #2 =Area Cook Inlet, Alaska (Kenai Penninsula) Well ' NS#2 `Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State OFFSET WELLPATH MD REFERENCE -Offset Wellbore: SD #2 Offset Wellpath: MWD <0_11094> ~MD Reference: Datum #2 (RKB) Offset TVD & local coordinates use Reference Wellpath settings ~ • MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 25 of 27 r~r~r saK~R NY6l1E~r INTEQ Operator ~, i 1 MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: SD #3 Offset Wellpath: MWD <0-10255> Facility: Susan Dionne Slot: SD #3 Well: SD #3 .Threshold Value=0.00 feet '~ =interpolated/extrapolated station Ref MD Ref TVD Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing C-C Clear Dist Ellipse Sep ACR MASD ~ ACR '~ [feet] [feet] [feet] [feet] [feet] [feet] [feet] [feet] j°] [feet] [feet] (feet] _ Status 0.00 0.00 0.00 0.00 0.00 13.00.. -9383.85 -9195.73 224.42 13138.43 12837.38 301.04 PASS C-C Clearance Distance Cutoff: 500.00 feet WF.LLPATH COMPOSiTiON Offset Wellbore: SD #3 Offset Wellnath: MWD <0-I0255> Start MD feet End MD [feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 10255.00 NaviTrak NaviTrak (Standard) MWD <0-10255> SD #3 .. Y. , .,. OFFSET WELLFATH MD REFERENCE -Offset Wellbore: SD #3 Offset Wellpath: MWD c0-10255> ;, MD Reference: Glacier #1 (RKB) Offset TVD & local coordinates use Reference Wellpath settings • MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 26 of 27 ~~~ BAKER t~u~NEs INTEQ Operator ... ~ ., 1 ~ MARATHON Oil Company Slot ,. Slot #2 `Area Cook Inlet, Alaska (Kenai Penninsula) V~'ell NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State CLEARANCE DATA -Offset Wellbore: SD#4 Offset Wellpath: MWD <0-11953> Facility: Susan Dionne Slot: SD #4 Well: SD #4 Threshold Value=0.00 feet ~ =interpolated/extrapolated station Ref Mll Ref TVll Ref North Ref East Offset MD Offset TVD Offset North Offset East Horiz Bearing GC Clear Dist Ellipse Sep ACR MASD ACR [feet] [feet] [feet] [feet] [feet] [feet] feet feet ° ~ feet feet feet Status 0.00 0.00.: 0.00 0.00 0.00 13.00 -9469.82 -9065.77 223.75 13109.76 12808.28 301.47 PASS C-C Clearance Distance Cutoff: 500.00 feet HOLE & CASING SECTIONS Offset Wellbore: SD #4 Offset Wellpath: MWD <0-11953> String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] Start N/S [feet] Start E/W [feet] End N/S [feet] End E/W [feet] 12.25in Open Hole 0.00 1861.00 1861.00 13.00 1558.68 -5770.76 -5528.66 -5788.09' -5782.56 8.Sin Open Hole 1861.00• 6116.00' 4255.00 1558.68 3417.73 -5788.09 -5782.56 -5882.89 -6945.11 6.125in Open Hole 6116.00 11953.00 5837.00 3417.73 8379.58. -5882.89 -6945.11 -5935.49 -7559.09 20in Conductor 0.00 122.00 122.00. 13.00 135.00 -5770.76 -5528.66 -5770.76' -5528.66 9.625in Casing 0.00 1851.00 185].00. 13.00 1553.92 -5770.76 -5528.66 -5787.86 . -5779.89 Tin Casing 0.00 6097.00 6097.00 13.00 3409.33 -5770.76 -5528.66 -5882.49'. -6939.9 4.Sin Liner 0.00 ].1953.00 11953.00 13.00 8379.58 -5770.76 -5528.66 -5935.49 -7559.09 ~,__.. ~ ~t~~v~.. ...~>. ,. ~.~~-~,,.~, ~.~~~_. ux..~~~~n,n~ ~ ~~~.,~zr z> ,..~.t,..... ~~ WF,LLPATH COMPOSITION Offset Wellbore: SD #4 Offset Wellpath: MWD <0-11953> Start MD feet] End MD feet Tool Type Positional Uncertainty Model Log Name/Comment Wellbore 0.00 11953.00 NaviTrak NaviTrak (SAG) MWD <0-11953> SD #4 MARATHON Clearance Report Closest Approach Reference Wellpath: NS#2 Ver 1 Page 27 of 27 r~r~r BAKER ~1Y61~IES INTEQ ';:Operator .. . ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) .Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State OFFSET WELLPATH MD REFERENCE -Offset Wellbore: SD #4 Offset Wellpath: MWD <0-11953> 1MD Reference: Glacier 1 (RKB) Offset TVD cPc local coordinates use Reference Wellpath settings r ~ MARATHON Wellpath Design Summary Report Wellpath: NS#2 Ver 1 Page 1 of 3 ~~~ BAKER NYt~NE~r INTEQ Operator .. ~ ~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State MARATHON Wellpath Design Summary Report Wellpath: NS#2 Ver 1 Page 2 of 3 r~~r BAKER EII~G i~l ES INTEQ Operator _®_.e__..____ __-__~_____~____._.___---- _._-- . ~ ~ ~~~ MARATHON Oil Company Slot Slot #2 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#2 Field Ninilchik Field Wellbore NS#2 Ver 1 Facility Ninilchik State ELLPATH DATA (6 stations) MD Meet] Inclination ~°] Azimuth ° TVD Meet] Vert Sect Meet] North [feet East Meet] DLS ~°/100ft] esign Comment 0.00 0.000 251.535 0.00 0.00 0.00 0.00 0.00 Tie On 250.00 0.000 251.535 250.00 0.00 0.00 0.00 0.00 End of Tangent 1468.68 60.934 251.535 1251.60 589.21 -186.62 -558.87 5.00 uild (S) 6273.77 60.934 251.535 3586.00 4789.15 -1516.86 -4542.59 0.00 nd of Tangent (S) ':_'. 6090.001 '_ -1983.41 -5939.77 11534.47 0.000 251.535 8304.00 6262.17 -1983.41 -5939.77 0.00 nd of Tangent HOLE & CASING SECTIONS R ef Wellbore: N S#2 Ver 1 R ef Wellpath: NS#2 Ver 1 String/Diameter Start MD [feet] F,nd MD (feet Interval Meet] Start TVD Meet] End TVD Meet] Start N/S Meet] Start E/W [feet] End N/S Meet] End E/W [feet] 9.625in Casing Surface 0.00 1600.00 1600.00 0.00 1315.40 0.00 0.00 -222.97 -667.75 Tin Casing Intermediate 0.00 6096.75 6096.75 0.00 3500.00 0.00 0.00 -1467.85 -4395.82 4.Sin Liner 0.00 11534.47 11534.47 0.00 8304.00 0.00 0.00 -1983.41 -5939.77 TARGETS Name MD [feet] TVll Meet] North [feet] East Meet] Grid East bus survey feet] Grid North [us survey feet] Latitude [°] Longitude ~°] Shape NS#2 T k 4/18/06 3824.00 -1983.41 -5939.77 216400.00 2244000.00 60 08 00.035N 151 33 20.IOSW circle yone - 4/1 /06 4307.00 -1983.41 -5939.77 216400.00 2244000.00 60 08 00.035N 151 33 20.1O5W circle NS#2 Tyonek T2 BIG - 8 9320.47 ~ 6090.OOr -1983.41 ~-5939.77 1 216400.002244000.00 60 08 00.035N ~-151 33 20 .1O5W~circle 1) NS#2 Tyonek T3 - 4/18/06 Well ath Desi n Summa Re ort B ~~~~ p weltpg : NS#2 Ver 1 ~ p EiYQME~"r MARATHON Page 3 of 3 INTEQ • • :'~ Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN _ ~: , _IFE Prepared For: MARATHON OIL COMPANY Well Ninilchik State #2 Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank Apri127, 2006 =~ IFE Kenai Peninsula, Alaska ~ • Marathon Oil Company ~'~ Well Name: Ninilchik State #2 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the recommended drilling fluid program for the Ninilchik State #2 Well.to be drilled this year. The following is a brief synopsis of the program. Overview: NS #2 is a development well targeting the Tyonek formation at the Ninilchik State field. A Gel/Gelex spud mud is recommended for the surface interval. Two Flo-Pro fluids will be used for the intermediate and production intervals. After logging the production interval, the well will be completed with 4-1/2" liner cemented in place. Surface Interval: A standard fresh water Gel/Gelex spud mud will be used. Initial funnel viscosity should be in the 50 - 75 sec/qt range. Lower funnel viscosity to 45 - 60 sec/qt after gravel has been drilled. Lower fluid loss to 10 - 12 cc's API prior to running surface casing. Intermediate Interval: This interval will be drilled with the same type of Flo-Pro fluid used on the NS #1 well. After drilling out the surface cement, the well will be displaced to the new fluid. SafeCarb bridging material will be maintained according to the mud program to minimize losses to the formation. Lubricants should be added on a as-needed basis. Production Interval: This interval will be drilled with the standard non-damaging Flo-Pro fluid used on non-excape wells. After drilling out the intermediate cement and 20 - 25 feet of new hole, the well will be displaced to the new fluid. Fluid loss should be maintained @ 5 - 7 cc's API for this interval. Completion: The completion will consist of a 4-1/2" liner cemented in place. This will be tied back to the surface with a 4- 1/2" completion string. Corrosion control will be added to the 6% KCl brine that will remain in the 4-1/2" x 7" annulus prior to tie-back. Tony Tykalsky Project Engineer M-I Drilling Fluids Reference Well: NS #1, SD #4 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties required. IFE • • ~i~ Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. EXECUTIVE SUMMARY ~_~,: -. 4 ' 'ti ~:Y ~I Our overall goal is no M-USwaco HSE incidents while providing fluids and solids control services to our customer. Our goal far NS #2 is to remove drill solids from the mud systems at a cost of less than $0.29 per pound. This has been the average for the last four years of centrifuge van operations Our goal for NS #2 is to drill the well at a fluid cost of less than $15.72 per foot with a total volume of fluid used less than 432 barrels. Use of the MI Swaco centrifuge van for the last five years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $1,000,000. With ~'~ continued usage of our equipment, we expect to provide more savings to you during future operations. IFE • • ~'~ Marathon Oil Company Well Name: Ninilchik State #2 3° Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark, 2 Benchmark 3 Benchmark 4 Interval fft) Fluid cost per foot Volume Usage Solids Removal 0 - 1600' < $6.35 ft < 1333 bbls 1600 - 6096' < $23.19 ft < 1622 bbls ~ I I 6096 - < $18.66ft < 1387 bbls I 11535' Total Project Avg. Max. Targets for < $18.72 < 4342 bbls < $0.291b o Spills from Centrifuge Drilling Van Operation Interval ~~ • • ~~ Marathon Oil Company -__:'~ Well Name: Ninilchik State #2 Location: Kenai, Alaska. Project Summary Casing Hole Casing Depth ND Mud Mud Sum Interval Size Size Program System Weight Days Mud Cost (in) (in) (ft) (ft) Solids Control (ppg) 9-5/8" 12-1/4" 1600' 1500' Gel/Gelex Spud 8.6 - 9.4 7 $15,975 Mud ` Screens 150/180 mesh 3 ' Desilter Centrifuge Van 7" 8-1/2" 6096' 3500' Flo-Pro 9.4 - 9.8 7 $110,084 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 4-1/2" 6-1/8" 11535' 8100' Flo-Pro 9.4 - 9.8 9 $108,967 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 4-1/2" 6-1/8" Completion 11535' 8100' 6% KCl 8.55 4 $12,392 Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). Condition the mud prior to running casing for all intervals. ~ Cost does not include any considerations for whole mud losses. ~ Cost includes 3% Lubetex concentration for intermediate and production interval. IFE • • ~:'~ Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Product Usage Summary (estimate) PRQT?~.TCT Surface jIntermediate 12-1/4" ' 8-1/2" i Production 6-1/8" Completion ~ 4-1/2" ~ % of ~ Total Usage, Total Cost ~ i M-I Bar 0 243 1110 0 1353 ~i 4.70 M-I Gel 400 0 0 0 400 1.61 Gelex 17 0 0 0 17 0.13 Soda Ash 7 8 14 0 29 0.24 Caustic Soda 7 16 14 0 37 0.72 Con or 404 0 4 5 0 9 5.23 Sodium Meta Bisulfate 13 16 14 2 45 1.42 Bicarb 7 8 14 0 i 29 0.24 Con or 303A 0 0 0 2 ~~~ 2 I 0.88 F1oVis 0 114 97 0 211 20.12 Desco CF 18 0 0 0 18 0.39 DualFlo 0 0 69 0 69 2.61 Polypac UL 27 57 0 0 84 6.07 KCl 0 681 583 158 1422 12.11 Kla and 0 22 19 0 41 13.14 SafeCarb 10 0 324 277 0 601 5.29 Lubetex 0 39 33 0 72 ~ 2437 Defoam X 0 9 8 0 17 0.73 Engineer Service 7 7 9 4 27 IFE • • Marathon Oil Company '~ Well Name: Ninilchik State #2 - Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments NS #1 12.25 190 8.7 13 32 15.5 Mill out conductor shoe, RIH with bit, drill surface interval 1290 8.9 11 31 14.8 Drill surface interval 1745 9.2 15 17 8.8 TD surface interval 1745 9.4 10 7 7.5 Run and cement 9-5/8" casing 8.5 2099 9.5 13 22 6.3 Displace to new 9.4 PPG FloPro, drill ahead 3461 9.7 17 26 5.4 Drill ahead 5385 9.6 20 26 5.8 Drill ahead 5570 10.1 22 32 4.6 Drill to casing point, backream to 1744', RIH no fill, POH for logs 5570 9.8 21 29 4.8 Run logs on drill pipe, POH 5570 9.6 14 20 5.6 Run 7" casing, cement job failed, circ out cement, pump new cmt job. OK. 6.125 5580 9.0 12 33 5.8 Drlg out cement, displace to new mud, LOT 16.8 PPG, drill ahead 6528 9.1 13 29 5.2 Drill ahead 7551 9.3 12 28 5.8 Drill to 7484' short trip OK, RIH drill ahead, Hi vis sweeps every 500' 8493 9.6 9 25 5.2 Drill ahead, pump hi vis sweeps every 500' with good results. 9856 9.6 10 20 6 Drill ahead, pump sweep prior to trip. 9955 9.6 9 23 6.8 POH for new MWD,OK 10346 9.5 9 25 6.4 RIH drill ahead to TD, short trip, OK, POH for logs 10346 9.6 9 23 7.2 Log well, wiper trip 10346 9.5 9 22 6.5 Run 4-1 J2" liner, cement same, packed off and lost returns 10346 9.65 7 18 7.6 Run temp survey, pump liner top cmtjob, 10346 9.55 8 16 7.8 Polish liner top, displace well to brine, run 4-1/2" tubing, land tubing Well Hole Size Depth PPG PV YP FL Comments SD #4 12.25" 561 8.8 14 23 14 Spud in, stuck @ 200' (boulder?), free pile, drlg ahead 1861 9.3 15 22 8.2 Drlg do interval T.D. 1861 9.55 16 16 8.4 Run & cement 9-5/8" casing 8.5" 3117 9.2 11 21 7 Drlg out, disp to new mud, drlg ahead, tight on short trip @ 2673° 4590 9.35 13 26 7.4 Drlg ahead, short trip, pump out from 4167 - 3534' NOTE: Pumped Io-vis/hi-vis sweeps with good results 6116 9.7 16 33 7.8 Drlg ahead, short trip, pump out from 4590 - 4179' 6116 9.7 19 28 6.8 Log well, wiper trip (hole un-loaded cuttings) add 3% lubetex for casing run 6116 9.7 19 26 7.2 Run & cement 7" casing 6.125" 7330 9.5 7 17 4.6 Drlg out, disp to new mud, drlg ahead (3% lubetex) 8255 9.8 9 22 4.8 Drlg ahead to 1st coring point, POH 8345 9.8 9 19 5.4 Core #1, OK 8707 9.75 8 19 5.8 Drlg ahead, POH for washout, drlg ahead 9310 9.85 11 28 5 Drlg ahead, increae lubetex to 4% 9922 9.8 11 28 5.2 Drlg ahead 10924 9.8 10 24 6.2 Drlg to 2nd coring point, POH (tight) 10969 9.8 11 23 6 Core #2 (two runs) 11031 9.8 11 24 5.6 L/D core, RIH drlg ahead 11505 9.8 11 20 5.4 Drlg ahead 11685 9.9 11 19 5.8 Drlg to T.D. of well 11953 10.1 13 21 5 Weight up to control gas, log well, (4-112% Lubetex) 11953 10.1 11 22 4.1 R/U and run 4-1/2' liner 11953 10.1 12 22 4.2 Cmt liner, dsp well to brine, L/D drlg pipe, run 4-1/2" tubing IFE • ~~ Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ FLUID LOSS CONTROL - In the intermediate interval the API fluid loss will be maintained in the 7 - 9 cc's range. In the production interval the API fluid will be maintained in the 5 - 7 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . It is particularly important to maintain a low hardness (<200 ppm Ca) for effective use of DualFlo, therefore cement contamination should be completely treated as rapidly as possible prior to adding DualFlo to control or reduce fluid loss. NOTE: If additions of DualFlo do not appear to be lowering the fluid loss adequately, then switch to additions of Polypac Supreme SL after consultation with town. ~ LSRV - Note Change. In the 8-1/2" interval, maintain the LSRV above 40,000. In the 6-1/8' interval, maintain the LSRV above 30,000. These guidelines will promote more effective hole cleaning and reduce fluid loss to the formation. ~ DRILL SOLIDS -MBT -The MBT should be kept at less than 5 ppb in the production interval through aggressive use of solids equipment and dilution as needed. ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCl should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with F1oPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 PPM. ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un-acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~ BEWARE OF STICKING PROBLEMS THAT OCCURRED ON SUSAN DIONNE WELLS (see offset well history) '~ ~~ ~E Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 0 -1600' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, angle building difficulties nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./100ftZ) (mU30min) (%) 0 - 1600' 8.6 - 9.4 60 - 100 25 - 35 NC - 10/12 +/- 9.5 < 7% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 100 sec.gt funnel viscosity. - Lower funnel viscosity to +/- 60 after any gravel zone has. been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add 2 - 5 PPB of M-I Seal Fine to mud system if seepage losses becomes a problem.. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 1333 barrels. - Estimated haul off volume - 1865 barrels. IFE E~.~' • Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 16Q0 - 6096' __ Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac UL / KCl / SafeCarb 10 /Asphasol Supreme / Lubetex / Caustic Soda / Congor 404 /Sodium Meta Bisulfate / Kla and Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Plastic LSRV .API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (mU30min) (%) 1600 - 6096' 9.4 - 9.8 8 - 12 > 40,000 7 - 9 +/- 9.5 +/- 7.5 - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Congor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval - 1622 barrels. - Estimated haul off volume - 2524 barrels. - Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. IFE • • Marathon Oil Company ~'~ Well Name: Ninilchik State #2 Location: Kenai, Alaska. Intermediate Interval Fluid Formula M~ ~~~ MUDCALC 4.5 -Water-Based Mud Calculation 8-1/2" Interval from 1600 - 6096' In ut Out ut -1 bbl Order of Products Concentration Volume Product Addition. Field, Ib lab; m Field, bbl Lab, ml Usa e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 2.00 2.00 0.004 1.33 Viscosit 4 Pol ac Su reme UL 2.00 2.00 0.004 1.25 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 4.00 4.00 0.010 3.33 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 30.24 30.24 0.021 7.20 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If for ue becomes a roblem add u to 5% of the followin 13 Lubetex 14.00 14.00 0.041 14.43 Lubrici Total. 394.8 394.8 .Estimated Volume Usa a 1622 barrels Calculated Mud Wei fit :Total Chloride 9.400 29600 Descri tion NS #2 Intermedi ate Interval Mud Wei ht 9.4 `Preh drated-Gel No Wei ht Material Code MI Bar Areh drated Gel Conc. Wei ht Material SG 4.2 KCI Chloride Wei ht Material Price KCI Wt%° 6 ~J Interval Summary • Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. -~6-1/8'~ hole ~' 6096 -11535' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / Greencide 25G / SafeCarb 10/ MI Bar / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate / Kla and / Lubetex / As hasol Su reme Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 210 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions, stuck pipe. nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (mU30min) (%) 6096 - 11535' 9.4 - 9.8 10 - 14 > 30,000 5 - 7 +/- 9.5 +/- 5% - Use one rig pit for drilling out intermediate casing. In other rig pits, build new Flo-Pro fluid using the enclosed formula. - NOTE: Initial formula does not call for Lubricant. However lubricant additions should be monitored for there effectiveness with the enclosed data sheet. - Estimated volume usage for interval - 1387 barrels. - Estimated haul off volume - 2525 barrels. - Condition mud prior to running 4-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ • '~ Marathon Oil Company Well Name: Ninilchik State #2 ~° Location: Kenai, Alaska. . Production Interval Fluid Formula Mi ~~+~,~~,,-- M-I L.L.C. MUDCALC 4.5 -Water-Based Mud Calculation Descri ton Mud Wei ht Wei ht Material Code Wei ht Material SG Wei ht Material Price 6-1/8" Interval from 6096 -11535 In ut NS #2 Production Interval 9.4 reh drated Gel MI Bar drated Gel Conc. 4.2 KCI Chloride KCI Wt% Out ut -1 bbl o 6 Order of Products Concentration Volume Product Addition Field, lb Lab, m Field, bbl Lab, ml Usa e 1 Water 317.07 317.07 0.906 317.07 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 Flovis 1.50 1.50 0.040 1.00 Viscosit 4 DualFlo 5.00 5.00 0.010 3.33 Fluid Loss Control 5 Caustic Soda 0.50 0.50 0.001 0.23 H Control 6 KlaGard 6.00 6.00 0.016 5.45 Inhibition 7 As hasol Su reme 2.00 2.00 0.005 1.67 Wellbore Stabilit 8 Potassium Chloride 20.24 20.24 0.024 8.47 Inhibition 9 Con or 404 2.00 2.00 0.004 1.43 Corrosion Control 10 SafeCarb 10 10.00 10.00 0.010 3.57 Brid in A ent 11 MI Bar 51.42 51.42 0.035 12.24 Mud Wei ht 12 Sodium Meta Bisulfate 0.50 0.50 0.002 0.56 Ox en Scaven er If for ue becomes a roblem add u to 5% of the followin 13 Lubetex 14.00 14.00 0.041 14.43 Lubricit Total 411.6 411.6 Estimated Volume Usa a 1387 barrels Calculated Mud Wei ht Total Chloride 9.800 29600 IFE • • Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Ninilchik State #2 Volumes: Tubing Volume 4-1i2" Tubing 83.6$ barrels Annular Volume Casing x Tubing 113.38 barrels 3.992 x 5403 ft Packer @ 5946 ft MD 6.276 @ 6096 ft MD 4.50 @ 11535 ft MD Total Annular Volume 113.38 Tubing Volume 83.68 Total Hole Volume 197.05 Treatment Procedures. 1. After the 4-1/2" tubing is run and the drilling fluid is conditioned, build at least 220 barrels of 6% KCL brine. 2. Displace mud out of well with the 6% KCL brine. Add 2 drum of Conqor 303A and 2 sack of Sodium Meta Bisulfate to the first 120 barrels of brine pumped., 3. Displace the 120 barrels of treated fluid with an additional 84 barrels of brine prior to setting the tubing hanger. 4. This procedure will place corrosion control in the 4-1/2" x 7" annulus. IFE Eli'. • Marathon Oil Company '~ Well Name: Ninilchik State #2 Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. IFE ~' n Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit Reactivit PPE ASPHASOL SUPREME Shale Inhibitor 1 1 0 J BORAX Inorganic Borate 1 0 0 E CALCIUM CHLORIDE Densifier 1 0 0 E CIRTIC ACID pH Adjuster 1 0 0 E CONCOR 303A Corrosion Inhibitor 2 1 0 E CONCOR 404 Corrosion Inhibitor 1 1 0 J D-D CWT Fluids Additive 2 1 0 .1 DEFOAM X Defoamer 1 1 0 J DESCO CF Dispersant 1 1 0 E DUAL-FLO Fluids loss reducer 1 1 0 E FORM-A-SET AK Loss circulation Material 1 1 0 E FORM-ABET XL Fluids Additive 2 1 0 E FORM-ABET RET Loss circulation Material 1 1 0 J HEC-10 Viscosifier 1 1 0 E FLO-VIS PLUS Viscosifier 1 1 0 E STEEL LUBE EP Oil well additive Lubricant 1 2 0 J SODIUM BICARB Alkalinity control 1 0 0 E SODIUM META Oxygen Scavenger 1 1 0 J GELEX Bentonite Extender 1 0 0 E G-SEAL Graphite LCM 1 1 0 E KLAGARD Shale Control 0 1 0 J LUBETEX Lubricant 1 1 0 J MI BAR Weighting Agent *1 1 0 E MI GEL Viscosifiet *1 1 0 E MI SEAL F, M, C LCM *1 1 0 E Product Health and Safety Reference HMIS HAZARD RATINGS IFE • Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. MIX II F, M, C LCM *1 1 0 E NUT PLUG F, M, C LCM *1 1 0 E POLYPAC'S Fluid Loss Control *1 1 0 E Potassium Chloride Shale Inhibitor, Densifier 1 0 0 E SafeCarbs (all) Bridging `weighting agent *1 0 0 E SAFEKLEEN Surfactant 1 1 0 J SALT Densifier 1 0 0 E SAPP Dispersant *1 0 0 E SODA ASH Calcium precipitation 1 1 0 E DRILLZONE ROP Enhancer 1 1 0 J SCREENKLEEN Dispersant/Emulsifyer 1 1 0 J BIOBAN BP-PLUS Biocide 2 1 1 J GREENCIDE 25G Biocide 3 0 0 J CAUSTIC POTASH Alkalinity Control 3 0 1 X CAUSTIC SODA Alkalinity Control 3 0 1 X HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Line Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions Contacts Contact Title e-mail Work I Cellular IFE • i~ Marathon Oil Company Well Name: Ninilchik State #2 Location: Kenai, Alaska. MSDS Emergency 281 561-1600 Contact Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field barry.michael@att.net 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Dave Morris/ John Drilling Foremen aaska_drilling 907 283-1312 Nicholson @marathonoil.com Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ Check No Check Date Bank Bank No Vendor Marathon Oil Company Direct Inquiries to: Hndl 9 ~ ACCOUNTS PAYABLE DEPARTMENT P. O. Box 22164 Accts Payable Contact Center 1220978 05/02!2006 NCBAS 7780 500112 Tulsa, OK 741 21-21 64 phone: 918-925-6097 HS __ _ _ Invoice INusnger _. InuoiceDate _ Doturt{enfNO .. RemifCommeryi Gsoss Amount .. .Discount .... Invoice/Pay Amount L100.00 05/02/2006 1900020850 100.00 100.0 TOTAL: 100.00 100.0 (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) ®® ® ® 0 °® ® ® ® ® "®° m e ~ ~~,, --_____.~_.s_ 1 =0RM250tREV.5/00 w "80 Marathon Oil Company 56-389'4' "" ACCOUNTS PAYABLE CHECK _ c cc~oa. E r~ECKNUMBER P _~?; Box 22164. Tulsa f)K 74121-2164 0~/(12/20U6 1220978 PAY TO TH=ORDER OF: • ALASKA OIL 8~ GAS CONSERVATION COMMISSION 333 WEST 7TH AVE STE 100 ANCHORAGE, AK 99501-3539 'JOIDAFTEF is02::YS MATCH AEAOUNT IN WORD`; .VI-TH NUMRFpS NATIONAL CITY BANK Ashland. Ohio ~_ - ,iin v" i ---'u _ ~-~ , ~~ m '~ V A~..'~-, ~_ .® - ~:-:. ~ ..:~i~n ~'B ~ ~ ~.®a ® i~~ ~ ®'. +, ~~~ - ®~~ rrT- ii i ., ~.,i i...i-T-"i ii ii°~'^ _ ®0 it ~ f ® ®• runnn 1] ~fl^ 70nt1 ^~f'tl 1 7f-1 7 O ~ Co• f1 1 7 1 O 1 ~~^ • TRANSMITTAL LETTER CHECKLIST WELL NAME ~, Z PTD# .~O~--Q Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well , (If last two digits in permit No. API No. 50- - - API number are , between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -`) from records, data and logs acquired for well SPACING EXCEPTION The permit is approved subject to ful liance with 20 AAC 25.055. Approval to perforate and roduce in'ect is contingent upon issuance of a conservation or er approving a spacing exception. l~~,a.ro u-, (~ ~` ~ ~ nn.~JOVn..~ assumes the liability of any protest to the spacing exception t at may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 1 /25/06 C :\j ody\transmittal_checkl ist WELL PERMIT CHECKLIST Field & Pool NINILCHIK, SD TYONEK UNDEF GAS _562560- _ Well Name: NINILCHIK STATE. 2_ _ _ __Program DEV_ Well bore seg PTD#:2060660 C ompany MARATHON OIL CO _____ Initial ClasslType --- -rte --- DEV 1 PEND__ GeoArea Unit OnlOff Shore On __ Annular Disposal __!. _ - --._ - Administration ,..: 1 _. Permitfeeattached Yes 2 Lease number appropriate Yes 3 Unique well-name and number Yes 4 Well located in a defined pool No 5 `'Jell located proper distance from drilling unit boundary. - No A SPACING. EXCEPTION 15 REQUIRE4D-DUE TO PROXIMITY '6 Weli located proper distance from. other wells..... Yes TO THE SUSAN DIONNE PARTICIPATING AREA BOUNDRY 7 Sufficient acreage available in drilling unit. :Yes 8 If deviated, is wellbore plat included Yes 9 Operator only affected party- Yes ,10 Operator has appropriate bond in force.. - Yes 11 Permit can be issued without conservation order No SEE ABOVE, HEARING DATE IS JUNE 13, 2006 12 Permit can be issued without administrative approval Yes Appr Date 13 Can permit be approved before 15-day wait No CANNOT ISSUE PERMIT UNTIL JUNE 13, 2006 RPC 511617.006 14 Well located within area and.strata authorized by Injection Order # (put 10# in comments) (For NA 15 All wells-within 1%4-mile area of review identified (For service well only) NA ' 16 Pre-produced injector: duration ofpre-production Less. than- 3 months. (For service well only) NA ACMP Finding of Consistency has been issued for this project- NA '17 Nonconven, gas conforms to AS31,05:030(~.1_.A),Q.2,A-D) - - - - NA Engineering 18 __ __ Conductor string provided Yes 20" @ 120; 19 Surface casing protects all. known. U$DWs - Yes ',20 CMT vol adequate to circulate on conductor.& surf_csg Yes Adequate excess, 21 CMT vol adequate to tie-in long string to surf csg Yes 22 CMT will cover all known productive horizons_ Yes 23 Casing designs adequate f_or C, T, B & permafrost Yes 24 Adequatetankageor reserve pit Yes Inlet Glacier Rig 1. 25 If a re-drill, has a 10.403 for abandonment been approved NA New well 26 Adequate wellbore separation proposed Yes 27 ~f diverter required., does it meet regulations Yes Appr Bate '2g Crillirg fluid program scheniaic & equip list-adequate Yes Max MW 9.6 ppg. ~ WGA 511612006 '29 BOPEs, do they meet regulation Yes ',30 aOPE.press rating appropriate; test to-(put prig in comments)- Yes Test to 3000-psi. MSP 2799 psi, '31 Choke-manifold complies wJAPI-RP-53 (May 84) - - _ - - Yes '32 lNork will occur without operation shutdown... - - Yes - '33 Is presence_of H2S gas-probable No Not an H2S area... ~34 Mecha_nical condition of wells within AOR verified (For service well only) NA Geology 35 Permit can be issued wlo hydrogen sulfide measures Yes '~36 Data presented on-potential overpressure zones _ _ _ _ NA p 137 Seismic-analysis of shallow gas zones- . NA- - 12006 RPC 5l1 !~38 Seabedcondition survey-(ifoff-shore) _ - - - - - - - _ - - - - - - - - - - - - - - - . - - NA - - 'I39 Contact namelphone for weekly-progress reports_[exploratoryon1y] - - - . NA- I Geologic Commissioner: Date: Engineering,1 ~ Public Com~J'z'" Date ~~ ~mr~ si ~ D/ / W s~Z ,/ c~ ~'~~ o • •