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Home My WebLink About207-018 ~~: ~~ _~~- ~. . s~ _. _ ~ . D P ~~. ~? '` :a `' ~ ~~ ~ "~, ,~ , MICROFILMED ..6/30/2010 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ~ IUe~ ~1.~-~~t DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2070180 Well Name/No. NINILCHIK STATE 3 Operator MARATHON OIL CO API No. 50-133-20566-00-00 MD 11962 ND 8005 Completion Date 10/5/2007 Completion StaYus 1-GAS Current Status 1-GAS UIC N --_------ --- -- - -- ----- - - - --- ----- -- - - ------ - - --- --- -- ---__ -- --------- -~ / - - --- - --- - -. .. --- - f~ REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey es' DATA INFORMATpN Types Electric or Other Logs Run: Quad Comb, CBL, PLT Weil Log Information: Log/ Electr Data Digital Dataset Ty,FSe Med/Frmt Number Name _ ~ D C 15339 Report: Final Well R Cement Evaluation C Las 15647 See Notes (data taken from Logs Portion of Master Well Data Maint ~ Log Log Run Interval Scale Media No Start Stop OH / CH Received Comments _ _ _ Open 8/23/2007 Final Well Report with digital Mudlogs in PDF, and Wireline graphics in PDF and LAS format 5 Blu 6400 10335 Case 8l31/2007 EXPRO Dual Radial Cement Bond/GR/CCL 8468 11180 Open 11/9J2007 Depth,m CCI, GR, Amplitude w/LAS and PDF graphics Well Cores/Samples Information: Name Cuttings ADDITIONAL IPFORMATION Well Cored? Y l~, Chips Received? -~.L.~L Analysis Y~~/-N-, Received? Sample Interval Set Start Stop Sent Received Number Comments 1660 11960 ~ 4/2/2007 1220 es and/or Samples are required to be ~ submitted. This record automatically created from Permit to Drill Module on: 2/1/2007. I Daily History Received? ~/ N Formation Tops ~~ N Comments: DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2070180 Well NamelNo. NINILCHIK STATE 3 Operator MARATHON OIL CO MD 11962 ND 8005 Completion Date 10/5/2007 Completion Status 1-GAS Current Status 1-GAS API No. 50-133-20566-00-00 UIC N ~ ~ i Compliance Reviewed By: Date: _.~. ~_ __ __ ~ ~ ~J ~ IVlarathon H{ARAiHON ~Alaska Praduction LLC September 4, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #3 Dear Mr. Aubert: J Marathon Alaska Production LLC Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 '~ .., F' . _ Attached for your records is the10-404 Report of Sundry Well Operations for NS-3 well. This report covers the velocity string installation work performed under Sun #309-211. The 1-3/4" velocity string was installed on 8/20/2009 and set at a depth of ,806° MD. Please contact me at (907) 283-1371 if you have any questions or need a itional information. Sincerely, . ~~~~~ ~ ~ Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-404 Report of Sundry Well Operations Operations Summary Well Schematic cc: Houston Well File Kenai Well File KJS ~C~~"'~~~ i STATE OF ALASKA ~ ALASKA OIL AND GAS CONSERVATION COMMISSION • ~rtG~ 9l~°l~OOq ~ ,. REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ (nstall Velocity Performed: Alter Casing ~ Pull Tubin~ Perforate New Pool ^ Waiver~ Time Extension ^ String Change Approved Program ~ Operat. Shutdowr~ Perforate ^ Re-enter Suspended Well ~ 2. Operator Ma~ath011 AIBSka 4. Well Class Before Work: 5. Permitto Drill Number: Name: production LLC Development ~^ Exploratory^ 207-018 ~ 3. Address: p0 Box 1949 Stratigraphic ~ Service ~ 6. API Number. Kenai Alaska, 99611-1949 50-133-20566-00- 7. KB Eleva6on (ft): 9. Well Name and Number: 169' 21' AGL Ninilchik State #3 / 8. Property Designation: 10. Field/Pool(s): ADL - 389180 ~ Ninilchik Unit / GO T onek Undefined Gas .- 11. Present Well Condition Summary: Total Depth measured 11,962' ~ feet Plugs (measured) 10,950' true vertical 8,005' ~ feet Junk (measured) NA Effective Depth measured 10,950' ' feet true vertical 6,993' ' feet Casing Length Size MD TVD Burst Collapse Structural ~ Conductor 68' 20" 89' 89' 3,060 psi 1,500 psi Surface 1,260' 9-5/8" 1,635' 7,281' 5,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 41/2" 11,270' 7,313' 8,430 psi 7,500 psi Liner Perforation depth: Measured depth: 9,359' - 10,862' True Vertical depth: 5,403' - 6,905' Excape Tubing 41/2" L-80 6,599' Tubing: (size, grade, and MD) Velocity String 1-3/4" QT 800 9,806' Capillary String 3/8" 2205 Stainless Steel 0' ._____.~ Packers and SSSV (type and measured depth) ZXP Liner Packer ~ 6,599' 12. Stimulation or cement squeeze summary: Intervals treated (measured): A 1-3/4" velocity tubing string was installed at a setting depth of 9,806' MD. 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: 0 920 3 50 735 Subsequent to operation: 0 660 4 50 750 14. Attachments: 15. W ell Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas ~^ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and corcect to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309-211 ~ Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Regulatory Compliance Technician "i ~ ~ Signature ,~>~ ~' ~ Phone (907) 283-1371 Date September 4, 2009 Form 10-404 Revised 04/20(~8~ '°~~~:~;,,'~ ~~~ ~~~~}~ Q Submit Original Only ~r , ~ ~ ~QQ~ ation: 169' (21' AGL) y Des: ADL - 389180 DD.06.14458.CAP.CMP 222,324.31 2,245,972.31 60° OS' 20.813" N 151° 31' 24.067" W 20:20 hrs 0212312007 17:00 hrs 0312012007 ~d Rig: 12:00 hrs 417/2007 65 deg from 1500-7200' MD 3 deg/100' to 9200' MD 0 deg from 9200' to TD at 11962' MD uth: 317.33 deg. Ninilchik State #3 Ninilchik Unit 858' FNL, 1,072' FWL Sec. 34, T1 N, R13W, S.M. ~ ~ ~ M M~-nioM Drive Pioe 20" K-55 733 ppt PE T~ Bottom MD 0' B9' rvo o~ ae' Surface Casina 9-516" L-80 40 ppf BTC 7pP Bottom MD 0' 1,635' ND 0' 1,281' Chemical Iniection Mandril (dj 2,391' MD '12-114" hole with 426 sks (186 bbls)'12.0 ppg cement wl 50 bbls cement circulated to surface. = 4.5", 12.6#, L-80, Buttre = 4.5", 12.6#, L-80, Hydril Chemical Injec[ion Nipple @: 2,391' MD (Top) 5.930" OD/3.858" ID 8,430 psi Burst / 7,500 psi Collapse •ZXP Liner Packer with 15' Tieback Extension @ 6.599' MD (Top) Unable to pass ZXP with gauge cutters. No problem with 3.50" Swage 'Flex-LOCk Liner Hanger @ 6,611' MD (Top) 'Marker Joint Top @ 7,533' MD (192' long) "HES valve @ 8,630' MD (2.55' tong) 4,682' ND 'Marker Joint Top @ 10,542' MD (19.8' long) `Landing Collar @ 11,184' MD (Top) 'Float Collar @ 11,226' MD (TOp) 'Float Shoe @ 11,2%0' MD (Bottom) Top of Cement ' Expro Temp Log: Indicated TOC @ 9,100' MD • Expro Radial Bond ~og: (9130107) TOC = 9,100' TD = 11,177' Caoillarv Strina 318" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' Tagged fill on (6125109) @ 10,881' SLMD Cast Iron Bridge Plug 10,950 MD TD PBTD 11,962' MD 10,950' MD 5,005' TVD 6,993' TVD Intermetliate Casina 7" L-80 26 pPf BTC To~ Bottom MD 0' 7,228' TVD 0' 3,656' &~12" hole with 335 sks (147 bbls) 12.5 ppg Leatl plus 165 sks (35 bbls) 15.8 ppg Tail, Bumpetl plug, 30 bbl spacer and 15 bbl cement to surtace. Floats held. Tie-Back Tubinq 4112" L-80 12.6 ppf Top Bottom MD 0' 6,599' TVD 0' 3,387' Liner 4-1/2" L-80 72.6 ppf Hydril 563 To~ Bottom MD 6,599' 11,270' TVD 3,387' 7,313' 7" hole with 192 sks (102 bbls) 10.5 ppg cement. Did not bump plug. Pumped 3.5 bbls over displacement volume. Full returns over entire job. No cmt to surface. DP dart to shift HES DV tool did not seat or open DV. No second stage cement job possible. 1-314" 0.125" wall ppf Top Bottom MD Surf 9,806' - TVD Surf 5,850' Bottom Hole Assemblv: " CT Grapple connector (2.5" OD, 1.5" ID) ' 6' Streight bar (2.5" OD, 1.5" ID) ' 70' Straight bar (2.5" OD, 1.5" ID) ' 1.25' PXN-profile (1.91" OD,1.735" no-go) ' 3.5" OD Centralizer 1 Wire Line entry guide NS-3 Tvonek Perfo retions: MD Ft TVD SPF Date 9,359' - 9,369' 10' S,403 - 5,413' 6 10I70107 9,360' - 9,370' 10' S,404'- 5,414' 4 11I21107 9,490' - 9,500' 10' S,534'- 5,544' 4 11121107 9,490' - 9,500' 10' S,534'- 5,544' 6 10110/07 9,784' - 9,794' 10' S,828'- 5,838' 6 10110107 70,078' -10,090' 12' 6,121'- 6,133' 4 10107107 10,332' - 10,346' 14' 6,375'- 6,389' 4 10/06/07 10,738' - 10,750' 12' 6,781'- 6,793' 4 10l06107 10,852' -10,862' 10' 6,895'- 6,905' 4 10106/07 Isolated with Cast Iron Bridq e Plua 8~&- 3a9~9' aa ~a, ~ B~1• ~ ns~_o g- • ~ ~ 10104/07 ~ ^~~.,~-'o_~w~._ ~1. -r n ~, n~a~„~ -..~ 10N0107 • • SARAH PAL/N, GOVERNOR F. r' r . ;r 333 W. 7thAVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 ,~. PHONE (907) 279-7433 • FAX (907) 278-7542 Kyle Miranda Production Engineer ~ Marathon Oil Company ~~ ~ ` PO Box 1949 1v Kenai, AK 99611 Re: Ninilchik Unit GO, Tyonek Undefined Gas Pool, Ninilchik State #3 Sundry Number: 309-211 Dear Mr. Miranda: 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 representa.tive of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~ DATED this ~ 6 day of June, 2009 Daniel T. Seamount, Jr. Chair Encl. • ~ Marathon MARATHON Oil Company June 19, 2009 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Ninilchik State #3 Dear Mr. Aubert: • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~~~"'°'~~ ~'` ~~~ ~~ r~l~s~ra ~~l N ~ ~ ~Q110 ~,t ~ ~ ~G"~~. "' i ~,Q ~~ ~r~A,~, ~~' "S1c~.; Submitted for your approval is the 10-403 Application for Sundry Approvals for NS-3 well. We propose to run a 1.75" velocity string in NS-3 to a setting depth of 9,500'. This should improve the well's ability to unload water and reduce the infiltrating water's affect .- on gas production. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, _ ,~ Kevin J. Skiba Regulatory Compliance Technician Enclosures: 10-403 Application for Sundry Approvals Operations Procedure Well Schematic cc: AOGCC Houston Well File Kenai Well File KJS JKM ~ '~~ STATE OF ALASKA ~~ ALAS~OIL AND GAS CONSERVATION COMMI~ON APPLICATION FOR SUNDRY APPROVALS nn n n~ nc n ~Cy~ fr~~LG~t,.p0 y ~~~~~ ~d ~~ .~t~N ~ 2 2n0~ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown^ Perforate ^ ~~~ -~ -~ i ~ala» ~*~+~6~~~ J Alter casing ~ Repair well ~ Plug Perforations ~ Stimulate ~ Time Extensi~Ht.~i~~~~nstall Velocity Change approved program ~ Pull Tubing ~ Perforate New Pool ~ Re-enter Suspended Well ~ String • 2. Operator Name: Marathon Oil Com an 4. Current Well Class: 5. Permit to Drill Number: p y Development ~. Exploratory ~ 207-018 3 Add . ress: PO BOX 1 J49 Stratigraphic ~ Service ~ 6. API Number: Kenai Alaska, 99611-1949 50-133-20566-00-00 ° 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 Stdte #3 • 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ~(l,t~~ ~~S ADL - 389180 169' •(21' AGL) Ninilchik Unit / Tyonek Pool ~~ 12~ PRESENT WELL CONDITION SUMMARY • L~ ~ Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Piugs (measured): Junk (measured): 11,962' ' 8,005' 10,950' 6,993' 10,950' NA Casing Length Size MD TVD Burst Collapse Structural Conductor gg~ 20" gg' 89' 3,060 psi 1,500 psi Surface 1,260' 9-5/8" 1,635' 1,281' S,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 4-1/2" 11,270' 7,313' 8,430 psi 7,500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9,359' - 10,862' 5,403' - 6,905' Excape 4-1/2" L-80 6,599' Capillary 3/8" 2205 Stainless Steel 0' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 6,599' 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch ~ Exploratory ~ Development ~' Service [~ 15. Estimated Date for `~ 16. Well Status after proposed work: Commencin O erations: July 2, 2009 g P Oil ~ Gas ~. 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 Kyle Miranda Title Production Engineer Signature Pho e Date ~ (907) 283-1370 June 19, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ~ Location Clearance ~ Other: ~ ~ ~~ JUN ~ ~ 2009 Subsequent Form Required: i ~*j - ~~ ~ APPROVED BY ~ / ~ ~ ~ ('~ Approved by: COMMISSIONER H C M j O MISSION Date: Form 1 D-403 Revised 06/2006 ~,,) t~ j v ~ t v~ ~-- '~`} >~'' ~~.~~ Submit in Duplicate ~ • . ~ MARATHON MARATHON OIL COMPANY Field: Ninilchik NS #3 2009 CT Velocity String Hangoff Procedure 6-18-09 Notes: • This procedure covers work to install a 1.75" OD coil tubing velocity string to alleviate liquid l loading. • Contact Vetco prior to MIRU to verify maximum hanger head ID & mandrel OD measurements. BJ CoilTech supervisor will drift all WH connections prior to rig up to insure drift ID of individual connections. • Pollard Wireline will install 1.25" PXN equalizing blanking plug into coil tubing profile nipple and pressure test to 3000 psi in both directions prior to BJ CT arrival on location. • Blow the well down to unload produced water the day prior to running the FBHP survey in Step #1 and the day prior to running in the hole with the coil tubing velocity string. • Last PT was 6-13-09 and fluid level was observed at -9500. PT tools cleared to 10920. Historv: As of 4-15-09, well produces at 700 - 900 mcfpd with 2-4 bwpd. Soap sticks are being dropped into •~ the well daily. The well is blown down about once/week which raises flow ~200 mcf and kicks off 10-20 bbls water. 06/13/09: PT flowing, fluid level 9500, tage 10920. GR 3.80 tag 6600 02/23/09: Pull cap string, continue with soap sticks 12/16/08: Pull up cap string 295' to 9490 11/05/08: Install 3/8 cap string to 9785 1. Obtain Real-time Flowinq PT Survev (determine correct set depth) Make arrangements with the NGF Operator to blow down well to unload fluid the day before this survey work is to be done. MIRU Expro wireline. Hold PJSM, RIH a 3.60" OD gauge ring with junk basket to a minimum depth of 10,000 MD for clearance purposes. RIH with CCL and 1-11/16" real-time Spartec pressure-temperature tool and GR with weight bars on wireline observing tool response for indication of producing fluid level. RIH to 10,000 (last PT to 10970 on 8-19-08). Correlate depth and POOH logging to about 100' above fluid level. POOH taking 3 min benches every 500'. RDMO Expro Wireline. 2. Install Coil Tubinq Head. Vetco to set 4" Cameron Type-H BPV. Close bottom master. Bleed off pressure and check for flow. Remove top master and install new Vetco 4-1I16 5M CT Head with 2-1/16" 5M side outlet. Install 2-1/16" gate valve and SSV to side outlet on coil tubing head. Reinstall and test (with diesel) tap master and swab valve. Make final measurements to install flowline to CT Head outlet. Pull BPV. 3. Make flowline modifications for CT V-Strinq. Plumb in and test annular flow line with a new 5K choke and ball valve to existing flowline, along with V-cone meter on annular line. 4. MIRU MOC flow back equipment ~ • Page 2 of 3 a. Choke skid and flow back iron. b. Open-top flow back tank with gas buster. c. Closed-top 500 bbl Rain-for-Rent fluid supply tank. Load fluid supply tank with 6% KCI. d. Deliver diesel fuel manlift and two light plants. Remove well house and lock out electrical connections. e. Make sure to lay liners and berm area around tanks 5. MIRU BJ coiled tubinq unit String # 23786 (11,825') of new flash-free 1-3/4" OD coiled tubing with 0.125" wall thickness. Rig up fluid and N2 pumps. RU pumping iron and flow back iron. 6. Nipple up BJ CT wellhead assembly (WHA). Current WHA is 4-1/16" 5M swab/cap. WHA to include 4-1/16" - 5M X 4-1/16" - 10M DSA, 4-1/16" - 10M X 5' Flanged Riser, 4-1/16" - 10M flow cross and 4- 1/16" - 10M Dual-Combi BOP (dressed for 1-3/4" CT}. Function test BOP. Stab 1-3/4" C7 into injector. Install BJ coil tubing connector and pull test to 15,000 Ibs. Nipple up injector to WHA. 7. Press e test surface lines and CT e ui ment with 6°/a KCL water. Pressure test pump iron (200 ~ low/4 00 high psi). Pump fluid to load CT. Pressure test CT, WHA and flow back iron to choke manifold (20 ~_ 0 psi). Pressure test BOP rams (200/4500 psi). Purge pressure test fluids w/ N2 to flowback tank and vent N2 pressure to flowback tank. 8. MU CT BHA. Nipple injector off WHA. PU 10' of 4-1/16" CQ lubricator. MU velocity string BHA to end of CT. BHA to include: a. 2.50" OD X 1.50" ID CT qrapple connector, b. 2.50" OD X 1.50" ID X 10' long box x box straiqht bar, c. 1.91" OD X 1.25" PXN (1.135" no-go) pin x pin profile nipple with equalizing blankinq pluq installed, d. 3.50" OD x 2.50" OD (1.50" ID top box x 2.0" ID bottom) wireline re-entrv quide with 2.0 OD" x 3.50" OD O-ring sealed aluminum pump-off pluq. Strap and record velocity string BHA dimensions and lengths 9. Nipple up iniector to WHA. Pressure test WHA using CT kill line (200/1500 psi). Bleed WHP to flow back tank. Prior to next Step, ensure that flowback line from WHA through choke manifold to gas buster is ready and available to keep TP at or below 1500 psi while RIH to eliminate possible CT collapse. This would serve as a backup if flow through the production flow line was unexpectedly curtailed or ceased. 10. RIH with 1.75" CT V-Strinq and BHA with well flowing to sales. 11. Cut CT. PUH to span WHA for final landing depth of 9500' MD. Set CT in BOP tubing/slip rams. Lock tubing/slip rams. Slack off injector chain traction and roll chains to verify slips are set. Release WHP above tubing rams to the flowback tank. Nipple injector off of WHA. Walk injector up CT. Install C plate above BOP and 1-3/4" polish rod clamp on CT. Cut CT above BOP high enough to allow Vetco to install CT connector and hanger mandrel assembly. 12. MU Vetco Coil Tubinq Hanqer and Weatherford GS Runninq Tool Swing Injector and lubricator away from WH. Vetco to connect VGCT Coil Tubing Hanger (4" Nom C/W 3" Weatherford Fishneck with 2-3/8" 8rd Box and 2" BPV) to hanging coil tubing with coil grapple. While Vetco is making up CT hanger, BJ CoilTech to connect Weathford GS tool string assembly to coil on reel trailer. Dimple-on a 1- 3/4" CT connector. Pull test CT connector (25,000 Ibs.) using 1.125" 10SA box X 1-1J2" MT pin crossover and 1-1/2" MT box pull plate. Tool string will consist of 1-3/4" slimline dimple-on, 1-3/4" DF check valve, 1.125' 10SA box X 1-1/2" MT pin X-over and 3" GS spear. PU or lay down 4" lubricator as needed to cover GS tool string and Vetco CT hanger. 13. Latch G~spear to Vetco mandrel after PU injector. Remove 1-3/4" polish rod clamp and C-plate from top of BOP. Walk injector down CT and nipple injector/lubricator to top of BOP. Pull test CT mandrel NS #3 Install 1.75" CT V-String Procedure KM - 6/18/2009 2:05:03 PM ~ ~ ~ Page 3 of 3 connection/GS spear assembly to CT string weight plus 5,000 Ibs. Slack off weight to CT string weight. Equalize WHP across tubing rams. Unlock tubing/slip rams. Open BOP tubing/slip rams. 14. RIH and land Vetco CT hanqer per Vetco procedures. Verify string and hanger are landed and secured per Vetco procedures. Slack off string weight to neutral. 15. Start pumping 6% KCL water at approximately 2 BPM through CT to release G s ear. Watch for weight change to verify release and pickup to unlatch spear. Stop pumping when spear is unlatched and above mandrel. 16. Purqe KCL water from surFace CT remaininq on reel trailer with nitroqen. Allow N2 to vent to flowback tank. 17. Nipple down iniector and WHA assemblv from tree. Set injector on ground and secure. Install WH cap on tree. RDMO BJ Coiltech coiled tubing and nitrogen units. Haul off fluid from tanks to the G&I Plant for disposal. 18. MIRU Pollard Wireline to pull blankinq pluq pronq and pluq from profile nipple on the end of the coil tubing velocity strin~:'` RU lubricator, WL BOPE, and pressure control equipment. Pressure test lubricator to 250/3~00 psi with methanol water utilizing Ninilchik pump skid. RIH with 1.25" OD tool string and latch equalizing prong with 1-1/4" JDC (jar down connection) with core extension. POOH with blanking plug prong. RIH and latch blanking plug with 1-1/4" JDC without core extension. POOH with blanking plug. RDMO slickline unit. 19. Blow aluminum pump-off pluq off the end of the CT WL re-entrv quide. Shut in sales and allow WHP pressure to build up to 1100 psi. Jumper gas from annulus to coil tubing until CT WHP is 1100 psi. While leaving CT shut in, open annulus to sales at 800 psi LP. The differential pressure between the coil tubing and annulus should blow off the pump out plug. 20. RDMO and release equipment. RD flowback iron. Release tanks and all rental equipment to vendors. 21. FLOW TEST WELL TO SALES. No more than a 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 and 1.75" coil tubing in a vertical well is 4.0 MMCFPD and 638 MCFPD, respectively, at 800 psig FCP. Flow well to sales observing recommended drawdown rates. CONTACTS Kyle Miranda 907-283-1370 (w) Ken Walsh 907-394-8271 (cell) Lyndon Ibele: 907-565-3042 (w) Clyde Scott 907-748-2819 (cell) Ninilchik Operators: 907-260-7660 or 907-567-3248 (SD Pad) KGF Operators: 907-283-1305 907-283-1311 (w) 907-394-3060 (cell) 713-296-2336 (w) NS #3 Install 1.75" CT V-String Procedure KM - 6/18/2009 2:05:03 PM Permit: # 207-018 API #: 50-133-20566-00-00 KB Elevation: 169' (21' AGL) Propertv Des~ ADL - 389180 WBS it: DD.06.14458.CAP.CMP X= 222,324.31 Y= 2,245,972.31 Lat: 60° 08' 20.813" N ~onq: is~~ sr za.os~° w Spud: 20:20 hrs 02/2312007 TD: 17:00 hrs 03120/2007 Released Riq• 12:00 hrs 4/7/2007 ( 5.0 degN00' from 300-1500' MD 65 deg from 7500-7200' MD 3 deg/100' to 9200' MD 0 deg from 9200' to TD at 11962' MD ~th: 317.33 deg Ninilchik State #3 Ninilchik Unit 858' FNL & 1072' FWL Sec. 34-T1 N-R13W S.M. = 4.5", 12.6#, L-80, Buttre = 4.5", 12.6#, ~-80, Hydril ''Baker Chemical Injection Nipple @ z 2,391' M~ (Top) 5.930" OD/3.858" ID 8,430 psi Burst / 7,500 psi Collapse I'ZXP Liner Pacher with 15' Tieback Extension @ 6,599' MD (TOp) ~ Unable to pass ZXP witb gauge cutters. No problem with 3.80" Swage 'Flex-Lock Liner Hanger @ 6,611' MD (Top) 'Marker Joint Top @ 7,533' MD (192' long) 'HES valve @ 8,630' MD (2.55' long) 4,682' ND 'Marker Joint Top @ 10,542' MD (19.8' long) 'Lantling Collar ~ 11,1g4' MD (Top) 'Float Collar @ 11,226' MD (Top) 'Float Shoe @ 11,270' MD (Bottom) Top of Cement ' Expro Temp Log: Indicated TOC @ 9,100' MD ' Expro Radial Bond Log: (9/30l07) TOC = 9,100' TD = 11,177' Cast Iron Bridge Plug 10,950 MD l Chemical Iniection Mantlril @ 2,391' MD ~ M ~u~rnoM Drive Pioe 20" K-55 133 ppf PE Toe Bottom MD p' gg• TVD 0' gg' SuAace Casina 9-S18" L-80 40 ppf BTC ToQ Bottom MD 0' '1,635' TVD 0' 1,281' 12-114" hole with 426 sks (~86 bbls) 12.0 ppg cement wl 50 bbls cement circulated to surtace. Intermediate Casinq 7" L-80 26 ppf BTC T~o Bottom MD 0' 7,22g' TVD 0' 3,656' 8-1/2" hole with 335 sks (147 bbls) 12.5 ppg Lead plus 165 sks (35 bbls) 15.8 ppg Tail, Bumped plug, 30 bbl spacer and 15 bbl cement to surtace. Floats held. Canillarv Strina 3/8" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' Tie-Back Tubina 4-1/2" L-80 12.6 ppf Top Bottom MD 0' 6,599' TVD 0' 3,387' Liner 4-1/2" L-80 12.6 ppf Hydril 563 To~ Bottom MD 6,599' 11,270' TVD 3,387' 7,313' 7" hole with 192 sks (102 bbls) 10.5 ppg cement. Did not bump plug. Pumped 3.5 bbis over displacement volume. Full returns over entire job. No cmt to surface. DP dart to shift HES DV tool did not seat or open DV. No second stage cement job possible. NS-3 Tvonek Pe rforations• MD Ft TVD SPF Date 9,359' • 9,369' 10' S,403 - 5,473' 6 10/10/07 9,360' - 9,370' 10' S,404'• 5,414' 4 11/21/07 9,490' - 9,500' 10' S,534'- 5,544' 4 11/21/07 9,490' - 9,500' 70' S.534'- 5,544' 6 10/10/07 9,784' - 9,794' 10' S,828'- S,S38' 6 10/10/07 10,078' - 10,090' 12' 6,121'- 6,133' 4 10/07/07 10,332' - 10,346' 14' 6,375'- 6,389' 4 t0106/07 10,738' - 10,750' 12' 6,781'- 6,793' 4 10/06l07 10,852' - 10,862' 10' 6,895'- 6,905' 4 10/O6/07 Isolated with Cas t Iron Brida e Pluq ~Br~--}B.~gg&_ .. ~'. .._- - -~,&7~-7,93F=- ~ 10/04/07 ~A:868'-a&,888'. ..2~ ~- --a,81-7-~83~- ..~ 10I10I07 TD PBTD 11,962' MD 10,950' MD 8,005' ND 6,993' TVD or Ninilchik State #3 Kenai Penisula Boroi 9,359' - 10,989' 5° I 100' from 300' )/S/2007 (per AOC Kevin Skiba Lease: State: Revision nimichik Unit, ADL - 389180 Alaska Countrv USA 5,403' - 7,032' ~° KOP (NDl 300' 148' (above MSL) RKB~ 21' 03/13/09 i M Marathon MARATHON Oil Company March 17, 2009 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #3 Dear Mr. Maunder: ~ Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~°~~~~~~~ ~``~`~~ ~ ~ ~G(~~ ~4N~s~,~ ~~~1 ~ ~ . ~''~' ~ "»~~~„ ~ ~n~~~r~t~ ~Otl~I381~~ Attached for your records is the Report of Sundry Well Operations, 10-404, for NS-3 well. This report covers the work performed to raise the 3/8" capillary string up-hole from 9,490' MD to 0' MD. This adjustment was necessary to reevaluate the usage of soap sticks to promote wellbore fluid removal. Marathon completed this work on February 24, 2009. As agreed upon, no AOGCC approval is required for capillary string depths adjustments. So there is no sundry approval number reflected on this 10-404 form. Please contact me at (907) 283 -1371 if you have any questions or need additional information. Sincerely, r ~ \~ ~ ~ Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations Operations Summary Current Well Schematic cc: Houston Well File Kenai Well File KJS ~j~ -~7l ~ „* STATE OF ALASKA `~~~~~ ~~~~ ~~~~ag ~ i~~g ALAS~OIL AND A N ERVATI N COMM ION GSCOS O ti~y~~ REPORT OF SUNDRY WELL OPERATIONS~'~~~'~ ~~~"`~~~~~ } °:,~,~~ ~ ,:, ~ ~~<,~ ~,~. ~ _~,a 1. Operations Abandon Repair Well Plug Perforations Stimulate ~'~~,~ (~y Raise Capillary Performed: Alter Casing ~ Pull Tubing ~ PerForate New Pool ^ Waiver~ Time Extension ^ String , Change Approved Program ~ Operat. Shutdown ~ Perforate ^ Re-enter Suspended Well ^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ^~ - Exploratory^ 207-018~ 3. Address: PO Box 1949 Stratigraphic ^ Service ^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20566-00-00 - 7. KB Elevation (ft): 9. Well Name and Number: 169' 21' AGL - Ninilchik State #3 ~ 8. Property Designation: 10. Field/Pool(s): ADL - 389180 ~ Ninilchik Unit / Tyonek Pool - 11. Present Well Condition Summary: Total Depth measured 11,962' ' feet Plugs (measured) 10,950' true vertical 8,005' - feet Junk (measured) NA Effective Depth measured 10,950' - feet true vertical 6,993' - feet Casing Length Size MD TVD Burst Collapse Structural Conductor 68' 20" 89' 89' 3,060 psi 1,500 psi Surface 1,260' 9-5/8" 1,635' 1,281' S,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 41/2" 11,270' 7,313' 8,430 psi 7,500 psi Liner Perforation depth: Measured depth: 9,359' - 10,862' True Vertical depth: 5,403' - 6,905' Tubing: (size, grade, and MD) ¢1/2" L-80 6,599' Packers and SSSV (type and measured depth) ZXP Liner Packer 6,599' 12. Stimulation or cement squeeze summary: Intervals treated (measured): The capillary string was raised up to surface level (0' KB) to facilitate reevaluation of soap stick utilization to promote wellbore water Treatment descriptions including volumes used and final pressure: removal. 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 835 18 200 808 Subsequent to operation: 0 888 4 200 802 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q° Service ^ Daily Report of Well Operations X 16. Well 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: NA Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician r , Signature ,~ Phone (907) 283-1371 Date March 17, 2009 Form 10-404 Revised 04/2006 ~~j'~ Submit Original Only ~: :~ i~~ ~~~ ;~ ~ ~~~~ '` Ma~~ ~perations Summary Report M~.~ JQ~~ ~p~y Well Name: NINILCHIK STATE Daily Operations Re ort Date: 2242009 Job Cate o: R&M MAINTENANCE 24 Hr Summary MIRU BJ DynaCoil to pull capillary string out of well. Drop three soap sticks. StadTime End Time Dur hrs O sCode Activi Code Ops Status Trouble Code Comment 08:00 08:45 U.75 SAFETY MTG AF Hold PJSM. Discuss alarms, muster area, and emergency response. Discussed operations, safety hazards around the well head, cold work hazards, overhead hazards, working with man-lift. Obtain SWPermit. 08:A5 09:00 0.25 RURD COIL AF Start equipment and warm up equipment. Electrician arrives to disconnect well house. 09:00 09:30 0.~0 SAFETY MTG AF Hold JSA discussing lift and make job assignments. Lift well house off WH. 09:30 11:00 1.50 RURD COIL AF Spot equipment. PU MT spool. Roll out excess coil from well head. Stab coil into injector. Reel excess coil onta spool. 11:00 11:30 0.50 RURD COIL AF Carry injector to well head. Connect hydraulic line to hydraulic pack-off. Check hydraulic pressure. Back-off Rattigun actuator screws. PU coil weight. Release slips. 11:30 13:21 1.85 RUNPUL COIL AF POOH wl 31H" coil and BHA to 949~' KB. 13:21 14:21 1.00 PUMP TRET AF Break off BHA. Remove pack-off. Install tree cap. PTest tree cap. Test good. Remove signage and LOTO on tree valves. 14:21 14:51 0.50 Hold JSA discussing lift and make job assingments. Re-install well house over well hause. 1d:51 15:21 0.50 SECURE WELL Secure well head and location. RD equipment. Sign out and leave loc. www.peloton.com Report Printed: 3/42U09 50-133•20566-00-00 ~ation: 169' (21' AGL) y Des: ADL - 389180 DD.06.14458.CAP.CMP 222,324.31 2,245,972.31 60° 08' 20.813" N 151° 31' 24.067" W 20:20 hrs 02/23I2007 17:00 hrs 03/20/2007 ~d Riq: 12:00 hrs 4/712007 KOP ~ 300' MDffVD Build 5.0 deg1100' from 300-1500' MD Hold 65 deg from 1500-7200' MD Drop 3 deg/100' to 9200' MD Hold 0 deg from 9200' to TD at 11962' MD Azimuth: 317.33 deg. Liner 41/2" L-80 72.6 ppf Hydril 563 Too Bottom MD 6,599' 71,270' TVD 3,387' 7,313' 7" hole with 192 sks (102 bbls) 10.5 ppg cement. Did not bump plug. Pumped 3.5 bbls over displacement volume. Full returns over entire job. No cmt to surface. DP dart to shift HES DV tool did not seat or open DV. No second stage cementjob possible. ~ MD Ft TVD SPF Date '- 9,369' 10' S,403 - 5,413' 6 70I70/07 '- 9,370' 10' S,404'- 5,414' 4 77/21/07 '- 9,500' 10' S,534'- 5,544' 4 71/21I07 - 9,500' 10' S,534'-5,544' 6 10N0107 ~- 9,794' 10' S,828'-5,838' 6 70N0107 '- 10,090' 12' 6,121'- 6,133' 4 10/07107 '-10,346' 14' 6,375'- 6,389' 4 10106107 '-10,750' 12' 6,781'- 6,793' 4 10106107 '-10,862' 70' 6,895'- 6,905' 4 10106107 10104107 10N 0107 Ninilchik State #3 Ninilchik Unit 858' FNL & 1072' FWL Sec. 34-T1N-R13W S.M. TD PBTD 11,962' MD 10,950' MD 8,005' ND 6,993' ND Well Name 8 Number: Ninilchik State #3 Lease: Ninilchik Unit, ADL - 389180 County or Parish: Kenai Penisula Borou h State: Alaska Country: USA Perforations (MD): 9,359' - 70,989' (ND): 5,403' - 7,032' M le KOP and Depth: 5° / 700' from 300' Angle/Perfs: 0° KOP (ND): 300' Date Completed: 10I512007 (per AOGCC) Ground Level: 148' (above MSL) RKB: 21' Revised by: Kevin Skiba Last Revision Date: 03113109 \ M MARATMOM Drive Pipe 20" K-55 133 ppf PE T~ Bottom MD 0' 89' ND 0' 89' Surtace Casina 9-518" L-80 40 ppf BTC To~ Bottom MD 0' 1.635' TVD 0' 1,281' 12-114" hole with 426 sks (186 bbls) 12.0 ppg cement w/ 50 bbls cement cireulated to surtace. Intermediate Casina 7" L-80 26 ppf B7C T~o Bottom MD 0' 7,228' TVD 0' 3,656' &1l2" hole with 335 sks (147 bbls) 72.5 ppg Leatl plus 165 sks (35 bbls) 15.8 ppg Tail, Bumped plug, 30 bbl spacer and 15 bbl cement to surtace. Floats held. Caoillarv Strina 3/8" 2205 Stainless Steel Top Bottom MD 0' 0' TVD 0' 0' Tie-Back Tubina 41/2" L-80 12.6 ppf Top Bottom MD 0' 6,599' TVD 0' 3,387' Chemical Iniection Mandril @ 2,391' MD ~ ' ~ Maunder, Thomas E (DOA) Page 1 of ~ From: Maunder, Thomas E (DOA) Sent: Thursday, February 19, 2009 10:19 AM To: 'Skiba, Kevin J.' Subject: FW: Ninilchik State #3 (207-018) Kevin, Here is the message trail regarding a revision of the completion date for this weli as carried in our records. The document you submitted had 10/3/07 entered as the completion date. After review, a date of 11/22/07 was "chosen". It appears that 207-d18 got confused with another Marathan wel! with that completion date. f am sending yau this message so your records are complete. Call or message with any questions. Tom Maunder, PE AOGCC From: Saltmarsh, Arthur C (DOA) Sent: Thursday, February 19, 2009 10:01 AM To: Maunder, Thomas E (DOA) Subject: RE: Ninilchik State #3 (207-018) Thanks Tom, After looking at you estimate, I agree we should change the completion date as you suggest. ~hat would be the first perfs in the weli. Art Saltmarsh Senior Petroleum Geologist Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage 99501 (907) 793-1230 From: Maunder, Thomas E (DOA) Sent: Thursday, February 19, 2009 9:59 AM To: Saltmarsh, Arthur C (DOA) Cc: Davies, Stephen F (DOA) Subject: Ninilchik State #3 (207-018) Art, As discussed, in looking at the production for this well I noted that production is reported prior to the listed completion date carried in the data base. Using the reported production days, it appears that first gas was sold October 14, 2007. I have reviewed the operations reports and it appears that the well was perforated beginning October 5 and continuing through October 11. Production logging was then conducted on October 18. Marathon had listed 10/3/07. Based an the aperations reports, 1 recommend th~t the corrtptetian date be chang~d fram 11f22/Q7 tc~ the initial perfaration da#e 10f57~7. If you agree, please reply and then either we can change the date or have Bob do it. I will place a copy of your reply in the well file. Tom 2/19/2009 ~ M Marathon MARATHON Oil Company January 8, 2009 • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~EVC~~~ ~aN 1 ~ zao~ Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #3 Dear Mr. Maunder: Alaska Oii & Gas Cons. CQmmi~~ior~ Anchorage Attached for your records is the Report of Sundry Well Operations, 10-404, for NS-3 well. This report covers the work performed to raise the 3/8" capillary string up-hole from 9,785' MD to 9,490' MD. Marathon completed this work on December 16, 2008. NS-3 is presently flowing 940mcf at 810 psi. As discussed, no AOGCC approval is required to adjust capillary string depths. Documentation of this work is being reported on this 10-404 form minus the typical sundry approval number. 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, ~ tip~-1Mi • " Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS ~~"b~~ . .~ ~ , ~ ~ --~ ~ ~ STATE OF ALASKA RE~ E~ V~~~' ~~J~ ~ ~ ~ • 1,~ ALASKA OIL AND GAS CONSERVATION COMMISSION I`~ REPORT OF SUNDRY WELL OPERATIONS JAN 1 2 20~~ ~ ~__~__ ~,.~ a „- - ~ ~~ 1. Operations Abandon Repair Well Plug Perforations Stimulate er ~ aise ap~ lairji""° ' Performed: Alter Casing ^ Pull Tubing^ PerForate New Pool ^ Waiver^ Time Extension Ch!''$~~g Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development Q Exploratory^ 207-018 r 3. Address: p0 BoX 1949 Stratigraphic ^ Service^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20566-00-00- 7. KB Elevation (ft): 9. Well Name and Number: 169' (21' AGL) ~ Ninilchik State #3 ~ 8. Property Designation: 10. Field/Pool(s): ADL - 389180 ' Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 11,962' - feet Plugs (measured) 10,950' true vertical 8,005' ~ feet Junk (measured) NA Effective Depth measured 10,950' ' feet true vertical 6,993' ~ feet Casing Length Size MD TVD Burst Collapse Structural Conductor 68' 20" 89' 89' 3,060 psi 1,500 psi Surface 1,260' 9-5/8" 1,635' 1,281' 5,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 4-1/2" 11,270' 7,313' 8,430 pSi 7,500 psi Liner Perforation depth: Measured depth: 9,359' - 10,862' True Vertical depth: 5,403' - 6,905' Capillary String 3/8" 2205 Stainless Steel 9,490' Tubing: (size, grade, & MD) Production String 4-1/2" L-80 6,599' Packers and SSSV (type and measured depth) ZXp LineP PaCker 6,599' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Raised 3/8" Capillary String to a depth of 9,490'. 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 1,200 2 178 785 Subsequent to operation: 0 940 13 182 810 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development ^~ - Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil ^ Gas 0- WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowiedge. Sundry Number or N/A if C.O. Exempt: NW Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Engineering Technician ~ ~' Signature . Phone (907) 283-1379 Date January 8, 2009 V Form 10-404 Revised 04/ ~ i~~~ ~A~ ~~,~~9 L?F_. l /ay Submit Original Only 50-133-20566-00-00 ~ation: 169' (21' AGL) y Des: ADL - 389180 DD.06.14458.CAP.CMP 222,324.31 2,245,972.31 60° 08' 20.813" N 151° 31' 24.067" W 20:20 hrs 0212312007 17:00 hrs 03120/2007 ~d Riq: 12:00 hrs 4/712007 KOP @ 300' MD/TVD Build 5.0 deg1100' from 300-7500' MD Hold 65 deg from 1500•7200' MD Drop 3 deg1700' to 9200' MD Hold 0 deg irom 9200' to TD at 11962' MD Azimuth: 317.33 deg. • Ninilchik State #3 Ninilchik Unit 858' FNL 8 1072' FWL Sec. 34-T1N-R73W S.M. Tubina Strina = 4.5", 12.6#, L-80, Buttress Mod Casina Strina = 4.5", 12.6#, L-80, Hydril 533/563 'Baker Chemical Injection Nipple @_ 2,391' MD (Top) 5.930' OD/3.858" ID 8,430 psi Burst / 7,500 psi Coliapse 'ZXP Liner Packer with 15' Tieback Extension @ 6,599' MD (Top) Unable to pass 7J(P with gauge cutters. No problem with 3.80" Swage 'Flex-LOCk Liner Hanger @ 6,611' MD (Top) 'Marker Joint Top @ 7,533' MD (19.2' long) 'HES valve @ 8,630' MD (2.55' long) 4,682' ND 'Marker Joint Top @ 10,542' MD (19.8' long) 'Landing Collar @ 11,184' MD (Top) 'Floal Collar @ 11,226' MD (Top) 'Fioal Shoe @ 11,270' MD (Bottom) To~ of Cement ' Expro Temp Log: Indicated TOC @ 9,100' MD ' Expro Radial Bond Log: (9/30/07) TOC = 9,100' TD = 71,177' 318" 2205 Stafnless Steel Top Boriom MD 0' 9,490' TVD 0' S,534' Cast Iron Bridge Plug 10,950 MD ~ MARATNON imermeaime ~asma T L-80 26 ppf BTC T~g 8otlom MD 0' 7.228' ND 0' 3,656' &1/2" hole wlth 335 aks (147 bbls~ 12.5 ppg Lead plus 765 sks (35 Dbls) 75.8 ppg Tall, BumpeC plug, 30 bbl spacer and 15 EDI cemern to suAaee. Floats held. Drlve Pice 20" K•55 133 ppf PE T~.e Bottom MD 0' 89' ND 0' 89' SuAace Casina &5l8" L-80 40 ppf BTC T~y Bottom MD 0' 1,635' TVD 0' 1,281' 12•114" hole wfth 426 sks (186 bbls) 72.0 ppg cement wl 50 bbls cemeM cireulated to suAace. 4-1@" L-80 12.6 ppf Hydril 563 Too Bottom MD 6,599' 11,270' TVD 3,387' 7,313' hole with 792 sks (102 bbls)10.5 ppg cement. Did not mp plug. Pumped 3.5 bbls over displacement volume. Full urns over entire job. No cmt to surface. DP dart to shik HES ' tool did not seat or open DV. No second stage cemeM job NS 3 Tv PF onek Perfor Measured ations Deoth ~ Date Too Bottom Footaae Too Bottom 9,359' 9,369' 10' 5,403 5,413' 10110/07 6 9,360' 9,370' 10' 5,404' 5,414' 11121/07 4 9,490' 9,500' 10' 5,534' S,544' 11I21/07 4 9,490' 9,500' 10' 5,534' S,544' 10N0/07 6 9,784' 9,794' 10' S,828' S,636' 10N0/07 6 10,078' 70,090' 12' 6,127' 6,133' 10/07/07 4 10,332' 70,346' 14' 6,375' 6,389' 10/06107 4 10,738' 10,750' 12' 6,781' 6,793' 10/06/07 4 10,852' 10,862' 10' 6,895' 6,905' 10/06/07 4 Isolated with Cast Ir on Bridae Plua 10,968' 10,989' 21' 7,011' 7,032' 10103/07 4 10,968' 10,989' 21' 7,011' 7,032' 10N0/07 6 TD PBTD 71,962' MD 70,950' MD 8,005' TVD 6,993' TVD Tie-Back Tubina 4-712" L-60 72.6 ppf Top Bottom MD 0' 6,599' TVD 0' 3,387' Well Name 8 Number: Ninilchik State #3 Lease: Ninilchik Unit, ADL • 389180 Count or Parish: Kenai Penisula Borou h State: Alaska Count : USA Perforations MD : 9,359' -10,989' ND : 5,403' - 7,032' An le KOP and Depth: 5° 1 100' from 300' An le/Peris: 0° KOP ND : 300' Date Completed: 7 01312 0 0 7 Ground Level: 148' above MSL RKB: 21' Revised b: Nanc Hen Last Revision Date: 12130108 ~ M Marathon MARATHON Oil Company November 12, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Report of Sundry Well Operations Field: Ninilchik Unit Well: Ninilchik State #3 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 for your records is the Report of Sundry Well Operations, 10-404, for NS-3 well. This report covers the work pertormed to run a 3/8" capillary string to mitigate water loading. The capillary string was installed on 11-05-08 and set at a depth of 9875'. All work was completed under Sundry #308-349. NS-3 is presently flowing at 1200 mcf at 785 psi. Please call me at (907) 283-1371 if you have any questions or need additional information. Sincerely, ~ , --Qit~w ~ , Kevin J. Skiba Engineering Technician Enclosures: 10-404 Report of Sundry Well Operations cc: Houston Well File Operations Summary Kenai Well File Current Well Schematic KJS ~ S7ATE OF ALASKA ~~~d ALAS'r"~A OIL AND GAS CONSERVATION COMMISSION ~~~ ~. ~ ` ~~~~ REPORT OF SUNDRY WELL OPERATIONS , 1. Operations Abandon Repair Well Plug Perforations Stimulate Other ~ ~nBtAi~°Capillary Performed: Alter Casing ^ Pull Tubing^ Perforate New Pool ^ Waiver^ Time Extension^ String Change Approved Program ^ Operat. Shutdown^ Perforate ^ Re-enter Suspended Well^ 2. Operator Marathon Oil Company N 4. Well Class Before Work: 5. Permit to Drill Number: ame: Development ^~ , Exploratory^ 207-018 - 3. Address: p0 BoX 1949 Stratigraphic ^ Service^ 6. API Number: Kenai Alaska, 99611-1949 50-133-20566-00-00~ 7. KB Elevation (ft): 9. Well Name and Number: 169' (21' AGL) ~ Ninilchik State #3 - 8. Property Designation: 10. Field/Pool(s): ADL - 389180 ~ Ninilchik Unit / Tyonek Pool 11. Present Well Condition Summary: Total Depth measured 11,962' ~ feet Plugs (measured) 10,950' - true vertical 8,005' ' feet Junk (measured) NA Effective Depth measured 10,950' ` feet true vertical 6,993' - feet Casing Length Size MD ND Burst Collapse Structural Conductor 68' 20" 89' 89' 3,060 psi 1,500 psi Surface 7,260' 9-5/8" 1,635' 1,281' 5,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 4-1/2" 11,270' 7,313' 8,430 psi 7,500 psi Liner Perforation depth: Measured depth: 9,359' - 10,862' True Vertical depth: 5,403' - 6,905' Capillary String 3/8" 2205 Stainless Steel 9,875' Tubing: (size, grade, & MD) Production String 4-1/2" L-80 6,599' Packers and SSSV (type and measured depth) ZXP Liner Packer 6,599' 12. Stimulation or cement squeeze summary: Intervals treated (measured): Installed 3l8" Capillary String to a depth of 9,875'. 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: 0 995 3.8 182 780 Subsequent to operation: 0 1,200 - 187 785 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory ^ Development Q- Service ^ Daily Report of Well Operations X 16. Well Status after work: Oil^ Gas 0- 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: 308-349 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title En gineering Technician • Signature ,~ Phone (907) 283-1371 Date November 12, 2008 ~/ - h~_ , . iy`p Form 10-404 Revised 04/2006 Submit Original Only ~ ~ # 207-018 50-133-20566-00-00 ~ation: 769' (21' AGL) y Des: ADL - 389180 DD.06.14458.CAP.CMP 222,324.31 2,245,972.31 60° 08' 20.813" N 151° 31' 24.067" W 20:20 hrs 02/23/2007 ~~:0~ hfS 03/2~~2~~~ :d Riq: 12:00 hrs 4/712007 KOP ~ 300' MD/ND Bulid 5.0 degN00' f~om 300-1500' MD Hold 65 deg from 1500•7200' MD Drop 3 degN00' to 9200' MD Hold 0 deg from 9200' ro TD at 11862' MD Azimuth: 317.33 deg. Ninilchik State #3 Ninilchik Unit 858' FNL & 1072' FWL Sec. 34T1 N-R13W S.M. J ~ = 4.5', 12.6#, L$0, Hydril 533/563 Chemical Injection Nipple @: 2,391' MD (Top) 5.930" OD/3.858" ID 8,430 psi Burst ! 7,500 psi Collapse XP Liner Packer with 15' Tieback EMension Q 6,599' MD (Top) Unable to paaa ZXP wiM gauge cutters. No problem with 3.80" Swage !ex-Lock Liner Hanger @ 6,611' MD (Top) larker Joint Top @ 7.533' MD (19.2' long) ES valve @ 8,630' MD (2.55' long) 4,682' ND Iarker Joint Top @ 10,542' MD (19.8' long) anding Coilar @ 11,184' MD (Top) loat Collar @ 11,226' MD (TOp) loat Shoe @ 11,270' MD (Bottom) Temp Log: Indfcated TOC ~ 8,100' MD Radlal Bond Log: (9/30/07) TOC = 8,100' TD = 11,177' 3l8' 2205 Stainless Steel Top Bottom MD 0' 9,785' TVD 0' S,829' I Cast Iron Bridge PIu9 I 10,950 MD MarUnroM Driw Pipa 20" K-55 133 ppf PE ToQ Bottom MD 0' 89' TVD 0' 89' s~n.~. ceama 9-518" L-80 40 ppf BTC Lop ottom MD 0' 1,635' TVD 0' 1,281' 12-114" hole wMh 426 sks (186 bWs) 12.0 ppg cement w/50 bble cement circulated to surface. Intermedfate Casina 7" L$0 26 pp( BTC iqp Bottom MD 0' 7,228' ND 0' 3,656' &112" hda wkh 335 ~k~ (107 bbls)12.5 ppg Lead plu~ 165 ~ks (35 bbls)15.8 ppg Tail, Bumped plug, 30 bhl spacer and 15 bbl ument to ~urfau. Flwb Mld. LU! t 4112" l$0 12.6 ppf Hydrll 563 ~pQ ottom MD 6,599' 71,270' ND 3,38T 7,313' 7" hole with 192 aka (102 bbls) 10.5 ppg cement. Did not bump plug. Pumped 3.5 bbla over diaplacement volume. Full retuma over entlre Job. No cmt to surface. DP dart to shift HES DV tool did not aeat or open DV. No second atage cement Job possible. NS #3 Ty - - onek Perforations --- - _ - - -- Measured De _ th N .__...._. ___ D _ .. ....._._ Date ..__~. SPF _.._ . ._ ....-- To Bottom ----- Footaae ~--. T;~ Bottom 9,359' 9,369' 10' S,403' S,413' ~oNOlo~ -- e --- -- --_ _ _ _ __.... 9,360' 9,370' ----- _ 10' . _. . S,404' _ - S,414' ~~nvo~ -- a __ -- - ---- 9,490' 9,500' ---_ _ 10' _ --- S,534' S,544' t~nvo~ e --- 9,490' -- - _ 9,500' _ _ 10' _ _ --- S,534' S,544' to/tolo~ s .. --- --- . _ 9,784' 9,794' 10' . _..- -------. S,828' - _ S,838' to/to/o~ --._.._. _ s _. ---_.._. 10,078' ..---- 10,090' '- 12' 6,121' 6,733' ~omo~ a '_ _ __. 10,332' . _..__._..- 10,346' _ 14' __._._'.__ 6,375' 6,389' ~o/wo~ .._ a --- 10,738' --- 10,750' ---- _ 12' __ ...___.-_. 6,781' 6,793' ~-- ~o/s~o~ -- a 10,852' 10,882' 10' 6,895' - - 6,905' __-_ ~o~s~o~ a Isolated with Cast Iron Bridge Plug _ _- - i ------.... _ _ _ 10,968' 10,989' I 21• T 7,011' 7,032' iolsla~ a 1Q968' f 10,989' j 21' 1 7,011' 7,032' ~ im~olo~ s Fortnatlon Topa: TD PBTD ~~~~2~ MD 10,950' MD F rtn n DeoM /MD1 DeoM INDI 8,005' TVD 6,993' TVD Beluga Tyonek TD Tie-Back Tubina 4-1/2" L-80 12.6 ppf Top Bottom MD 0' 6,598' ND 0' 3,387' Well Name & Number: Ninilchik State #3 Lease: Ninllchik Unit, ADL • 389180 Count or Parish: Kenai Penisula Borou h State: Alaska Count : USA Perforations MD : 9,359' - 10,989' ND : 5,403' - 7,032' An le KOP and De th: 5° / 100' from 300' An le/Perfs: 0° KOP TVD : 300' Date Com leted: 1013/2007 Ground Level: 148' above MSL RKB: 21' Revised b: Mike Sulle last Revision Date: 11106/08 ~ . ~~ ~~` u ~ ` ~ ~ ~~ ~ SA ~ RAH PALIN, GOVERNOR CO~T~~~~~0 ~„~ ~~~ 333 W. 7thAVENUE, SUITE 100 ~• A~~~ ~,pA~r~~.~~~ p~~ ANCHORAGE,ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Kevin Skiba Mara.thon Oil Company PO Box 1949 Kenai AK 99611-1949 Re: Ninilchik Unit,l~onek Undeflned Gas Pool, Ninilchik State #3 Sundry Number: 308-349 Dear Mr. Sl~ba: 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 Comrnission to witness any required test, conta.ct the Commission's petroleum field inspector at (90~ 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr. , n Chair ~f-~4 DATED this 3~day of September, 2008 Encl. ~,b~~S ~v ~ ! • M Marathon MARATHON Oil Company September 24, 2008 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7t" Ave Anchorage, Alaska 99501 Reference: 10-403 Application for Sundry Approvals Field: Ninilchik Unit Well: Ninilchik State #3 Dear Mr. Maunder: Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~ ;,~ ~ ~~ ~ ~ °'x.~' .~ ~ , _ r ., ~..~ ~~, f~ ~ ' r;r~ E, t_ti~u~~ ~. , l',~..~' ~. . ~~ . _ .. . ~ ~v. ~ .~ ~ .. ~. Marathon request permission to run a 3/8" capillary string in NS-3 well to mitigate water loading. Setting depth of the capillary string should be approximately 9,785' MD. Please contact me at (907) 283-1371 if you have any questions or need additional information. Sincerely, . ~- ~~~~~ Kevin J. Skiba Engineering Technician Enclosures: 10-403 Application for Sundry Approvals Current Well Schematic Detailed Operations Program cc: AOGCC Houston Well File Kenai Well File KJS MDD ~~ ~' , _ 8 ~ t~ STATE OF ALASKA ALAS OIL AND GAS CONSERVATION CC~I~h~ `~ 1~111.~`.~~~ APPLICATION FOR SUND,~Y ,A~'.PROVALS 20 AAC 25.280 ~ .. : ~ °- ~/~ O ~ ~~ 0 ~~~ ~ 1. Type of Request: Abandon^ Suspend ^ Operational shutdown^ F~erforate [}^ Waiver^ Other ~ Alter casing ^ Repair well ~ Plug Perforations ^ Stimulate ^ Time Extension ~ Instal Capillary Change approved program ~ Pull Tubing ~ Perforate New Pool ^ Re-enter Suspended Well ~ String 2. Operator Name: Marathon Oil Company 4. Current Well Class: 5. Permit to Drill Number: Development ~~ Exploratory ~ 207-018 - 3. Address: p0 BoX 1949 Stratigraphic ~ Service ~ 6. API Number: Kenai Alaska, 99611-1949 50-133-20566-00-00 - 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: ^ ^~ Ninilchik State #3 - Spacing Exception Required? Yes No 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL - 389180 ~ 169' (21' AGL) ~ Ninilchi k Unit / Tyonek Pool 12• PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 11,962' ~ 8,005' , 10,950' ~ 6,993'~ 10,950' NA Casing Length Size MD ND Burst Collapse Structural Conductor 68' 20" 89' 89' 3,060 psi 1,500 psi SurFace 1,260' 9-5/8" 1,635' 1,281' S,750 psi 3,090 psi Intermediate 3,635' 7" 7,228' 3,656' 7,240 psi 5,410 psi Production 4,671' 4-1/2" 11,270' 7,313' 8,430 psi 7,500 psi Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9,359' - 10,862' 5,403' - 6,905' 4-1/2" L-80 6,599' Packers and SSSV Type: Packers and SSSV MD (ft): ZXP Liner Packer 6,599' 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ^~ BOP Sketch ~ Exploratory ^ Development Q- Service ^ 15. Estimated Date for 16. Well Status affer proposed work: Commencing Operations: OCtober 8, 2008 Oil ^ Gas ^~ - 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 Kevin J. Skiba Title Engineering Technician Signature .. h e . (907) 283-1371 Date September 24, 2008 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~' ~~ Plug Integrity ~ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: ~~ roved b A : APPROVED BY COMMISSIONER THE COMMISSION ~~~~ ~ ~ Date: pp y v l. Form 10-403 Revi dA g~oq6~ + i~~`~ ~ L ~~~~~ ~~P `~ ZQ~$ Submit in Duplicate ~ 2008 Capillary String Installation Page 1 ~ 2008 Capillary String Installation Program #2 KGF, SU, NGF KBU 24-7X - Requested KBU 14-6Y - Requested KBU 31-7RD - Requested SU 41-15RD - Requested FC 3 - Requested NS 3 - Requested NS 1 - Requested Obiective 1) Install six new CICM's (injection skids) with 545 gallon totes of foamer at wellheads. 2) Install capillary strings (3/8" 2205 0.049" WT) into seven wells for delivering foamer to alleviate liquid loading. Procedure Companies involved: BJDC, BJCS, UOSS, Senette's IT group and electricians TVD Setting Setting Depth Setting String Depth Above Depth Spool Setting at max Estimated Maximum Perf Tag Fill Under PT Max Order Well Len th De th perf Fluid Level De th De th Water Well Notes ID ran 1 KBU 247X 9000' 7965' 7850' 8141' 8165' 300' 115' Exca e 1.75 2 KBU 14-6Y 8000' 7050' 7000' 7138' 7132' 82 50' Exca e 1.69 3 KBU 31-7RD 8000' 7220' 7120' 7534' 7392' 172 100' 1.75 4 SU 41-15RD 12000' 10400' 10300' 11506' 11498' 98 100' Exca e 1.75 5 FC 3 10000' 2720' 2615' Gas from SS 7770' N~A 105' Lon strin 6 NS 3 11000' 9785' 9605 9550' 10862' 10970' 1185' 235' 4-1/2" 2 7 NS 1 9000' 8733' 6715 None 8956' 10220' 1487 0 4-1/2" 2 Installation Procedure: 1) BJCS and ASRC: (PJSM & JSA~ a) Place 6 new CICM skids at listed wells (BJCS, Steve Bolton, 252-9864) - deliver with truck (Oilfield Hotshot Service, Billy Hill, 398-4827) - unload CICM from truck with loader (ASRC Hardline Group, Tony, 294-0548) - unbolt and remove CICM roof with loader and place 545 gal foamer tote with loader - replace CICM roof with boom truck (UOSS, Tom David) and bolt roof b) Install CICM internals (BJCS, Steve Bolton, 252-9864). 2) COGZ work order (contact Senette's group~ a) Electrical hookup of CICM. b) Tubing hookup of CICM. . ~ ~ 2008 Capillary String Installation Page 2 3) UOSS - pull well house 4) BJDC, UOSS (PJSM and JSA~: 1. Have on site: proper spool, Wayne's Well Head Adapter (long/short both), Sundry. Well Control Standards Sheet. 2. MIRU BJ Dyna-Coil unit. 3. Shut swab valve, pull tree-cap flange, remove snap ring and OTIS blanking plug. Replace plug with WWHA (note o-ring). MU flange. 4. P/U Dyna-Coil injector with UOSS crane; install packoff assembly into 2-7/8" female connection. NOTE: a wrench or tongs may be needed to hold the adapter 5. Set Fluid Control Valve release (set based upon TVD, but OVER) 6. MU BHA with centralizers and secure to 3/8" string. 7. SHLJT IN WELL AT WING VALVE to prevent BHA from traveling into flow-tee and down flowline. NOTE: Operator or Company Supervisor may bring well back on after string is below flow-tee 8. RIH to setting depth. 9. Set Rattiguns. Leave 1.5 times SITP (or greater per BJDC) on hydraulic pack off. 10. OPEN WELL TO PRODUCTION 11. Leave remaining spool of tubing outside of well in plastic tote for soap injection skid hookup 12. Cap tubing with a Swagelok cap and valve, pressure gauge, and HI' filter. 13. Lockout Swab, Upper Master, and Lower Master as per Capstring Lockout Procedure. 14. Hookup injection line to CICM. NOTE: Start foamer at 1/2 gpd, slowly raising the level to planned rate as the week progresses. CHECK FOR FOAM RETURNS. 15. RDMO. Cleanup site. Sign-out. 5) UOSS - replace well house NOTE: When replacing well house, be careful of the tubing "bend" as it goes back inside if it extends through the roof . ~ Permit: # 207-018 API #: 50-133-20566-00-00 KB Elevation: 169' (21' AGL) Propertv Des: ADL - 389180 WBS #: DD.06.14458.CAP.CMP X= 222,324.31 Y= 2,245,972.31 Lat: 60° 08' 20.813" N Lonq: 151° 31' 24.067" W Spud: 20:20 hrs 02/23/2007 TD: 17:00 hrs 03/20/2007 Released Riq: 12:00 hrs 4/7/2007 KOP @ 300' MDITVD Build 5.0 degN00' from 300-1500' MD Hold 65 deg from 1500-7200' MD Drop 3 degN00'to 9200' MD Hold 0 deg from 9200' to TD at 11962' MD Azimuth: 317.33 deg. Ma~-n~oM Drive Pine 20" K-55 133 ppf PE T~o Bottom MD 0' 89' TVD 0' 89' Surface Casinq 9•518" L-80 40 ppf BTC Top Bottom MD 0' 1,635' TVD 0' 1,28't' '12-114" hola with 426 sks (186 6hls) 12.0 ppg emor.t w/ 50 bbls cemen, circ~iated to sutiacr~. , I Intermediate Casinq 7" L-80 26 ppf BTC T~o Bottom MD 0' 7,228' ND 0' 3,656' 8-1/2" hole with 335 sks (147 bbls) 72.5 ppg Lead plus 'I65 sks (35 bbls) 15.8 ppg Taii, Bumped plug, 30 bbl spacer and 15 bbl cement to surface. Floats held. Liner 4112" L-80 12.6 ppt Hydril 563 Ton Bottom MD 6,599' 11,270' TVD 3,387' 7,3'13' 7" hole with 192 sks (102 bbls) 10.5 ppg cement. Did not bump plug. Pumped 3.5 bbls over displacement volume. Full retums over entire job. No cmt to surface. DP dart to shift HES DV tool did not seat or open DV. No second sWge cementjob possible. NS #3 Tyonek Perforations Measured De th ND Date SPF To Bottom ~ Foota e To Bottom 9,359' 9,369' ' 10' S,403' S,413' ~oNOlo~ s 9,360' 9,370' 10' S,404' S,474' ~~nt/o~ a 9,490' 9,500' 10' S,534' i 5,544' tv2vo~ a 9,490' 9,500' 10' S,534' S,544' ~o~~oio~ s 9,784' 9,794' 10' S,828' 5,838' ~ol~olo~ s 10,078' 10,090' 12' 6,121' 6,133' ionlo~ ; a 10,332' 10,346' 14' 6,375' 6,389' ~olsio~ a 10,738' 10,750' 12' 6,781' 6,793' ~olslo~ a 10,852' 10,862' 10' 6,895' 6,905' ~a~s~o~ a Isolated with Cast Iron Brid e Plu 10,968' 10,989' 21' 7,011' 7,032~ 1013/07 a 10,968' 10,989' 21' 7,011' 7,032' ~onolo~ s Formation Tops: TD PBTD Formation Deoth (MDl Deoth (ND) ~~~962' MD 8,005' TVD 10,950' MD 6,993' ND Beluga Tyonek TD Tie-Back Tubinq 4-1/2" L-80 12.6 ppf Top Bottom MD 0' 6,599' ND 0' 3,387' Well Name & Number Ninilchik State #3 Lease: Ninilchik Unit, ADL - 389780 County or Parish: Kenai Penisula Borough State: Alaska Country: USA Perforations (MD): 9,359' • 10,989' (ND): 5,403' • 7,032' M le QKOP and Depth: 5° 1 100' from 300' M le/Perfs: 0' KOP (TVD): 300' Date Completed: 10/3I2007 Ground Level: 148' (above MSL) RKB: 21' Revised by: Kevin Skiba Last Revision Date: 09/24/08 ~J M Marathon MARATHON Oil Company January 11, 2008 Iy11~ S1~ I I 1 Y ~ ~ 1 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-421 Open Flow Potential Test Report Field: Well: Dear Mr. Maunder: Ninilchik Unit Ninilchik State #3 i Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 ~,E~i~~~~~' JA~I ~ ~ 2Q0~ Alaska Ql ~ Gas Cons, Commissi~n Anchorap~ Enclosed is the Open Flow Potential Test Report 10-421 for well NS-3. This well was spud on February 23, 2007 and completed into the Tyonek formation. The information on this report was obtained from a one point test. We do not have the ability to vary the well's flow or pressure because it is producing at line pressure which is at the well's unloading rate. Maintaining production from this well is a sensitive balance which would be upset if well conditions were modified. Since the well is operating at line pressure the rate can not be increased and production could be lost if the rate is reduced. If you have any questions or require additional information, please call me at (907) 283- 1371. Sincerely, ' ~ •~ ~o~~ Kevin J. Skiba Production Technician Enclosures: 10-421 Open Flow Report cc: Houston Well File Kenai Well File KJS DMD ~c~~"-b6`~ ~ ~-~~ RECEIVED STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMM SSION g~ 1 Q 2Qa8 GAS WELL OPEN FLOW POTENTIAL TEST REP~RT 1a. Test: ~ initial Annual Special 1b. Type Test: ~ Stabilized ~ 0115. 0 ~~d~iFit ^ Constant Time ^ Isochronai ^ Other Anchoraqe 2. Operator Name: 5. Date Completed: 11. Permit to Drill Number: Marathon Oil Company October 3, 2007 207-018 ~' 3. Address: 6. Date TD Reached: 12. API Number: PO Box 1949, Kenai Alaska, 99611-1949 March 20, 2007 50- 133-20566-00-00' 4a. Location of Well (Governmental Section): 7. KB Elevation (ft): 13. Well Name and Number: Surface: 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. 169' Ninilchik State #3 Top of Productive Horizon: 8. Plug Back Depth(MD+TVD): . 14. Field/Pool(s): 3,460' FSL, 2,908' FEL, Sec. 28, T1N, R13W, S.M. 10,950 MD 6,993' ND Total Depth: 9. Total Depth (MD + TVD): Ninilchik Field / Tyonek Pool 4,238' FSL, 3,625' FEL, Sec.28, T1N, R13W, S.M. 11,962' MD ` 8,005' TVD - 4b. Location of Well (State Base Plane Coordinates): 10. Land Use Permit: 15. Property Designation: SurFace: x- 222,324.31 Y- 2,245,972.31 Zone- 4 ADL 389180- TPI: x- 218,521.00 Y- 2,250,276.60 Zone- 4 16. Type of Completion (Describe): Total Depth: x- 217,825.60 Y- 2,251,083.70 Zone- 4 Single 17. Casing Size Weight per foot, Ib. I.D. in inches Set at ft. 19. Perforations: From To 4-1/2" 12.6 3.958 11,270' 9,359' MD 10,862' MD 18. Tubing Size Weight per foot, Ib. I.D. in inches Set at ft. 4-1 /2" 12.6 3.958 6,599' 20. Packer set at ft: 21. GOR cf/bbl: 22. API Liquid Hydrocardbons: 23. Specific Gravity Flowing Fluid (G): 6,599' MD (top) - 0.56 24a. Producing through: 24b. Reservoir Temp: 24c. Reservoir Pressure: 24d. Barometric Pressure (Pa): ~ Tubing Q Casing 127 F° 2,612 psia @ Datum 6,993 TVDSS 14.65 psia 25. Length of Flow Channel (L): Vertical Depth (H): Gg: % CO2: % N2: % HZS: Prover: Meter Run: Taps: 9,338' 5,403' ND (KB) 0.56 0.277 0.200 0 Facility 26. FLOW DATA TUBING DATA CASING DATA No. Prover Choke Line )( Orifice pressure Diff. Temp. Pressure Temp. Pressure Temp. Duration of Flow Size (in.) Size (in.) Psig Hw F° psig F° psig F° Hr. ~• 3.826 X 1.250 804 12.45 45 - - - - 4.00 2• X 3. )( 4. )( 5. X N Basic Coefficient 24 H ~ Pressure Flow Temp. Gravity Factor Super Comp. Rate of Flow o. ( - our) h Pm Factor F9 Factor ~1i Mcfd Fb or Fp Ft Fpv 1. 66.75228772 23.6696008 818.65 1.00 1.336 1.7043 1,580 2. 3. 4. 5. Temperature for Separator for Flowing No. Pr T Tr z Gas Fluid Gg G 1. 1.22 460 1.34 0.82 0.56 NA 2. 3• Critical Pressure 673.1 4• Critical Temperature 343.2 5. Form 10-421 Revised 1/20 ., CQNT UED ON REVERSE SIDE Submit in Duplicate . ~~11~ ~~~. ~nr~ ~ ~ 2d l~ ~,~ t~ P~ 2230 Pcz~ 4971695.9 ~ ~ Pf No. Pt Pt~ Pc2-Ptz Pw Pv~ Pc2-Pv~ PS Ps2 Pf -PsZ ~ • 819 670,318.8 2. 3. 4. 5. 25. AOF (Mcfd) 1,767 Remarks: 0.750 I hereby certify t t the fore ing is true and correct to the best of my knowledge. Signed . M Title Production Engineer Date 1/8/2008 DEFINITIONS OF SYMBOLS AOF Absolute Open Flow Potential. Rate of Flow that would be obtained if the bottom hole pressure opposite the producing face were reduced to zero psia Fb Basic orifice factor Mcfd/ h~ Fp Basic critical flow prover or positive choke factor Mcfd/psia Fg Specific gravity factor, dimensionless Fpv Super compressibility factor= /1 Z dimensionless Ft Flowing temperature factor, dimensionless G Specific gravity of flowing fluid (air=1.000), dimensionless Gg Specific gravity of separator gas (air=1.00), dimensionless GOR Gas-oil ratio, cu. ft. of gas (14.65 psia and 60 degrees F) per barrel oil (60 degrees F) hw Meter differential pressure, inches of water H Vertical depth corresponding to L, feet (TVD) L Length of flow channel, feet (MD) n Exponent (slope) of back-pressure equation, dimensionless Pa Field barometric pressure, psia Pc Shut-in wellhead pressure, psia Pf Shut-in pressure at vertical depth H, psia Pm Static pressure at point of gas measurement, psia Pr Reduced pressure, dimensionless Ps Flowing pressure at vertical depth H, psia Pt Flowing wellhead pressure, psia Pw Static column wellhead pressure corresponding to Pt, psia Q Rate of flow, Mcfd (14.65 psia and 60 degrees F) Tr Reduced temperature, dimensionless T Absolute temperature, degrees Rankin Z Compressibility factor, dimensionless Recommended procedures for tests and calculations may be found in the Manual of Back- Pressure Testing of Gas Wells, Interstate Oil Compact Commission, Oklahoma City, Oklahoma. Form 10-421 Revised 1/2004 Side 2 ~ IIllaunder, Thomas E (DOA) From: Ibele, Lyndon [Icibele@marathonoil.com] Sent: Monday, December 17, 2007 11:37 AM To: Maunder, Thomas E (DOA) Subject: Sundry status • Page 1 of 1 Tom-- FYi, just wanted to let you know that we have had an on-going, company-wide IT problem that may affect our ability to file sundry notices timely for a few wells. The data-base system that is used to generate all of our downhole activity reports crashed on December 8th, and all the king's horses and all the king's men haven't been able to put Humpty-Dumpty back together yet and we have been given no timeline for completion. We know we are close to the 30 day deadlines for submitting Form 404 for recent work performed on Wells G03 and G05, and the 407 for G06. However, should the afore-mentioned database not be functional in the next few days, we wili be unable to retrieve operations summaries that are required with the sundries, and it is likely these sundry reports could be tardy. I will keep you posted if that looks likely to occur. ~ ~~ ~~ ~ ~ RE Forms 10-421, there are severai pending. However, we have not yet achieved stable production rates and have been unable to perform multi-point tests on Sterling Unit wells 41-15rd and 43-9x. Those tests wili be performed and submitted as soon as possible. For Wells NS-3 and GO-6, we have single-point tests only to report, because the wells are producing at maximum capacity but at very low rate. The only means to achieve multiple flow points would require that the wells be choked-back, but doing so would cause them to be produced below the unloading rate. This would not only be meaningless from a multi-point test perspective, but would also jeopardize killing the wells. We will submit a cover letter with this explanation when we submit the form 10-421 for these two wells. ~~~~~ ~~~ ~ n ioi~nno ~ Mal'1t~'1~M1'1 MARATNON V~~ ~QI~pC~I1Y November 27, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-407 Well Completian Report Field: Ninilchik Unit Well: Ninilchik State 3 Dear Mr. Maunder: ~ Marathan Oil Gompany Alaska Asset Team P.Q. Box 1849 Kenai, AK 99611 Telephone 907l283-1371 Fax 8071283-4350 ~~~~~~~~ N~~ ~ ~ ~~~7 A~a~k~ ~~I t~ ~~~ ~~in~, ~~rnmissio~ ,~n~i~~pr~~~ Enclosed please find the 10-407 Well Completion Report and Log for Ninilchik Unit well NS-3. The well was completed into the Tyonek Pool. The completion work was conducted over a time span that started on October 3, 2007 and concluded on November 21, 2007. Also attached, for your records, are the current wellbore diagram, Operations Summary, and directional survey. If you have any questions or require additional information, please call me at (907) 283- 1371. Sincerely, ~ i _ ~~~..J ~.~%~7/~' Kevin Skiba Production Technician Enclosures: 10-407 Well Completion Repo~t cc: Houston Well File Well Schematic Kenai Well File Operations Summary KJS Directional Survey KDW ! ' s~~ ~ECEI\I~~ STATE OF ALASKA NOV 2+B ~QQ] ALASk~A C~1L AND GAS CONSERV~TION ~OMMISSION ~ a ~ ~~mmissin~ WELL CQMPLETION OR R~~ECOMPLET14~t~EPt~~I~~~ ~,,,~~~ ~~ 1a. WeII Status: Qil ~ Gas Plugged ~ Abandoned ~ Suspended ~ zonacz~.~o5 zna~cz~:r~o GIN.t^ WINJ ^ WDSPL^ WAG ^ Other^ No. of Completians: 1b. Well Class Development ~ Explor~tory^ Service [~ Sftatigraphic 7est ^ 2. Operator Name: Marathon Oil Company 5. Date Comp., ~s Aband.: 92. Permit to Dri11 Number: 207-018 3. Address: PQ Box 1949, Kenai Alaska, 99611-1949 6. Date Spudded: ~ 2I23/2007 1~. API Number: 50-133-?0566-0Q-00 ~4a. Locaiion of Well (Governmeofal'Section): Surface: 858' FNI, 1,072' FVUL, Sec. 34, T1N; R'13W, S.M. 7. Date TQ Reached; 3/20/20D7 14. Well Name and Number; NinFlchik State #3 ~ 7op of Productive Horizon: 3,460' FSL, 2,908' FEL, Sec. 28, T1N, R13W, S.M. 8. KB (ft above MSL); ~ gg'_ Ground (ft MSL): 148' 15. Field/Poal(s); - Total Depth; 4,238' FSL, 3,625' FEL, Sec.28, T1N, R13W, S.M. 9. Piug Back Depth(MD+TVD); 10,950 MD 6,993' TVD NIIl1lChlk Utl[t / TyOllek POOI 4b. Location of Well (State Base Plarte Coordinates, NAD 27): Surface: x- 222,324,31 y- 2,245,972.31 Zone- 4 10. Total Qepth (MD + TVD); 11,962' MD 8,005' ND 16. Property Designation: ADL - 389180 TPI: x- 218,52'I.OQ y- 2,250,276.60 Zone- 4 Tota1 Depth: x- 217,825.60 y- 2,251,083J0 Zone- 4 11.. SSSV Depth (MD ~- TVD}: 17. L,and Use Permit: 18. Directional Survey: Yes ~ No (Submit electronic and printed information par 20 AAC 2~.050) 19. Water Depth, if Offshore: NA (ft MSC) 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 Comb, CBL, PLT 22. CASING, LINERAND CEMENTING RECORQ CAS(NG WT PER GRADE SETTING DEPTH MD SE'i'f'ING DEPTH TVD h LE S NTI COR M AMOUNT ~T. TOP BOTTpM TOP BOTTOM O IZE ~E E NG RE D pULLED 0 20" 133 K-55 0` 89' 0' 89• 6riven NA 9-5t8" 40 L-8D 0' '1,635` 0' 1,281' 12-1/4" 426 sks 174.5 sks 7" 26 L-80 0' ~,228' 0' 3,656' 8=7/2" 500 sks 34 sks 4-1/2" 12.6 L-80 6,599' 11,270` 3,387' 7,393' 7" 192 sks 0 sks 0 23. Open to production or injection? Yes ~ No ~ If Yes, list each 24. TU61NG REGORD interval open (MD+TVD of7op & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER'SET (MD) 9,359'-9,369' MD 5,403'-5,413' ND 3.375" 6 spf 4.5" 6,599' 6,599` 9,360'-9,370' MD 5,404'-5,4'f4' ND 3.375" 4 spf 9,490`-9,50~' MD 5,534'-5,5A4' NQ 3.375" 6 spf 25. ACID, FRACTURE, GEMENT SQUEEZE, ETC. 9,490`-9,500' MD 5,534'-5,544' ND 3.375" 4 spf DEPTH INTERVAL (MD) RM~UNT AND KIND OF MATERIAL USEQ 9,784'-9,794' MD 5,828'-5,838' ND 3.375" 6 spf 10,07'8'-10,090' ~iAD 6,121'-6,133' 7VD 3.375" 4 5pf 10,332'-10,346' M D 6,375'-6,389' NQ 3.375" 4 spf 10,738'-70,T50`MD 6,787'-6,i93' ND 3.375" 4spf 10,852'-10,862' MQ 6,895'-6,905' TYi3 3.375" 4 spf 26. PRaDUCTION TEST Date First Production; 10I13/2007 Method of Operation {Flowing, gas lift, etc.}: Flowin bate of Test: 11l1/2007 Hours 7ested: 24 Production for Test Period ~il-Bbl: 0 Gas-MCF: 1,4Q8 Water-BbL- 20.9 Choke Size: 64 I 64 Gas-Oil Ratio: 10Q % Gas Ffow'Tubing, Press. 784 Casing Press U Calcutated 24Hour Rate ~ Oi1-Bbl: 0 Gas-MCF: 1,408 Water-BbL• 2Q.9 Oil Gravity - API (corr): NA 27. CORE DATA Conventional Cc~re(s) Acquired? Yes ^ No ~]/ Sidewall Cores Acquired? Yes ~ No Q If Yes to either question, list formaiions and intervals cored (MD+~'~/D of top and bottom of each), and summarize lithology and presence of oil, gas or water (submif separate sheets with this form, if needed). Submit detai2ed descriptions, core chips, photographs snd laboratory analytical results pec 20 AAC 25:071. _ ._ NA ~. _~taS~~, :~S4~d3 ~~/~o, ~ ~ ~ ~~~ ~~~ ~ ~ ~~n7 ~ ~------ ~/i9/ Form 10-407 Revised 2/2p07 CONTINUED ON REV~RSE ~ ~ ~R1GINAL l J ~ 28. GEOLOGIC MARKERS (List all formations and markers encou~tered): 29. FORMATION TESTS ~~ ~~ T~ Well tested? ~ Yes No If yes list intervafs and formations tested briefly , , summariaing test results. Aftach separate sheets to this form, if needed, and submit detailed test iniormatian per 2Q AAG 25.071. Top Tyasek (T4 Goal A} 7,455 3,767 Perf 1Q96&108&9' MD (10/5l2007): No change id surEace pressure after the zone was Tyanek T2 Coal A $,34p 4,413 shok When tested, intervst did not flaw snd water moved into the welt. Tyonek T3 Coal R 9,558 5,602 T4 Coal 11,390 7,433 perf t~~~~~62` MD (10/7t2007): After 15 minut~, ttiere was na change in pressure. Tp 11.962 8,005 at totaf depth: Tyonek T4 PerF 10738-10750' MD (7~i7/2007): No change in pressure aiter tnterval was shot. Perf 10332-10346' MD (70t7/2Q07): Pressure increased 1725 psig to 1735 psig after 15 mfnutes. Perf t007&10~0' MD (1QI812Q07): No change in pressure after interval was shot. Perf 9T80-980Q' MQ (1d/11/2QQ7): Na che~ in pressure after interval was shot Pert 8497-950T MD (10/1112~7): No change in pressure after interval was inidally shot On 10H8(2007, ail intervals had been shot and the well was flowing at a rate of 1398 Mcf/d (~ WHP 769 psi. A PLT run the same day indicated nearly ali of the gas productian coming from this intenraL Perf 9367-937T MD (10/11/2007): Pressure increased -ipsUmin after the interval was shot. 30. List of Attachments Operation Summary, Directional Survey 31, I hereby certify that the foregoing Is We and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Ken D. Walsh Title: Senior Production Engineer Signafure: ~.~GZ:~~ Ph one: (907j 283-1311 Date: 11t28l2007 INSTRUCTIONS General: This form is designed for submitting a comptete and correct weil completion report and bg on all iypes of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 weli completion report and 10-404 well sundry report when the downhole weli design is changed. Rem 1 a: Classif'~cation of Serviee welis: Gas Injection, Water Injection, Water-Aitemating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a weil producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. ftem 4b: TPI (Top of Producing Interval). ftem 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 attachmer~ts. 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 ND for the top and base of permafrost in Box 28. Item 22: Attached supplemental rocords for this well shoutd show the details of any mul8ple stage cementing arM the location of the cementing tool. Item 23: If this weli is complsted for separete production from more than one interval (multipie completion), so state in ftem 1, and in item 23 show the producing i~tervals for only the interval reported i~ item 26. (Submit a separete form for each addilional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operatlon: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water InjecUon, Gas Injection, Shut-in, or Ofher (explain). Item 27: Provide a listing of intervals cored and the corresponding fortnations, and a brief description in this box. Submk detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the coResponding formafion, and a brief summary in this box. Submit detailed test and analytical laborafory informatlon required by 20 AAC 25.071. Form 10-407 Revised 2/2007 i KOP ~ 300' MD/TVD Bulid 5.0 deg1100' hom 300•1500' MD Hold 65 deg /rom 7500-7200' MD Drop 3 deg/100' to 9200' MD Hold 0 deg from 9200' to TD at 11962' MD Axlmuth: 3~ 7.33 deg. Ninilchik State #3 Ninilchik Unit 858' FNL 8 1072' FWL Sec. 34T1N-R13W S.M. J l Chemkal injeclion Nipple Q: 2391' MD (TOp) 5.930' OD/3.858' ID 8430 psi bursV7500 psi collapse ZJCP Liner Packer with 15' Tieback Extensian Q 6599' MD (7op) Unabie to paaa ZXP wlfh gauge cutten. No problem wfth 3.80" Swapa Plex-lock Liner Hanger Q 6611' MD (fop) Joim Top @ 7533' MD (192' long) HES valve Qa 8630' MD 2.55' bng) 4682' ND Marker Joint Top @ 10542' MD (19.8' long) Landing COllar @ 111&4' MD (Top) Floal Coilar Q 11226' MD (TOp) Float Shoe Q 11270' MD (BOttom) Eupro Temp Log: Indiwted top of cement at 8100' MD. ;_~ i Expro Radlal Bond Log: 8130107 TD = 11,177', TOC = 8100' j ~ ~ Cast Iron Brldpe Plug / 10,950 MD Formadon Topa: TD: 11,987 MD / 8,005' TVD rmatlon Deoth (MDl peoth (TVDI ealuga Tyonek TD • M M~~nioM ~ 20' K-56 133 pp( PE Top Bottom MD 0' 89' TVD 0' 89' Surhes Caim 4S(B" L-00 40 ppt BTC T~o Bottom MD 0' 1,636' TVD 0' 1,2ET 12-714" hola wNh 146 ~k~ (186 bbls)12.0 ppg pment w/50 bbl~ amoM clrculafsd to ~urtace. IrA~rmaAaL W~Ina 7" L-80 26 ppf BTC T~ BoMOm MD 0' 1,228' TVD 0' 3,656' E-1I2' hol~ wlth 335 ~b (147 661~)125 ppg Lwd plu~ 765 ~b (35 bbl~)15.D ppp Tdl, Bumpsd plup, 30 bbl ~p~ar md 76 bW wm~nt W sudaw. FloaU hald. MI 4172" L-BO 12.8 ppf Hydrll b63 iqp ot[o MD 6,599' 71,270' ND 3,38T 7,313' 7' hole wlth 182 aka (102 bbls)10.5 ppg cement. Dld not bump plug. Pumped 3.5 bbla over disptacement volume. Full relume over entlre Job. No cmt to eurface. DP daA to ahlfl HES DV tool did not aert or open DV. No second stage cement job poanible. NS #3 PERFS Measured De th ND Date SPF To Bottom Foota e T~ Bottom 9,359' ~_ 9,369' i 10' __ 5,403' S,413' ~onao~ s 9,360' ' 9,370' ~ 10' S,404' ~ 5,414' ~intro~ ~ 9,490' 9,500' '~ 10' 5,534' 5,544' ~vzvo~ ~ 9,490' 9,500' 10' S,534' S,544' ~onolo~ s 9,784' 9,794' 10' S,828' 5,838' tono~o~ e 10,078' 10,090' 12' 6,121' 6,133' ~omai + 10,332' 70,346' 14' 6,375' 6,389' to~s~o~ 4 10,738' 10,750' 12' 6,781' 6,793' ~ois~o~ ~ 10,852' 10,862` ! 10' 6,895' 6,905' iols~o~ 4 Isolated with Cast Iron Brid e Plu~ 10,968' ' 10,989' 21' 7,011' 7,032' _ tor~o~ a 10,968' ' 10,989' ' 21' 7,011' 7,032' ~onaoi e Wall Name 8 Number. Ninllchlk SWte 3 Lease: Ninllchlk Unlt Count or Parish: Kenal PenMule Borou h Slate: Alaska Coun . USA Perforetions MD : 9,359' • 10,889' D: 5,403' - 7,032' M le/Perfs: A KOP and De th: KOP ND : 3D0' BHP: BHT: Complation Fluid: FWHP: FBHP: FWHT: FBHT: Dale Co leted: RKB: Prepared B. Kevin Skiba Lasl Revision Dale: 11/28I07 ~ ~ Marathon Oil Company Pa~e 1 of 1~ Operations Summary Report Legai Well Name: NINt~CNIK STATE 3 Common Wefl Name: NINILCHIK STATE 3 Spud Date: 2/23f2007 Event Name: ORfGINAL DRILLING Start: 2/1U/2007 End; Contractor Name; GLAGIER DRILLING Rig Release; Graup: Rig Name: GLACIER DRILLING Rig Number: 1 Date ~ From - Ta I Haurs ~ Gode ~ c~a~ ~ Phase ~ Description iof Operations 2f2~l2007 06:00 -12:00 6.Q0 MOB RIG_ MIRU 12:Op-2~:00 8.00 RURD,_ RfG_ M1RU 20:00 - 06;Od 14.Od RURD_ RIG_ MIRU 2/21/2007 06:00 -18:00 12.00 RURD RIG MIRU 18:00 - 06:00 "12.00 RURD_ , RIG_ MIRU 06:00 - 12;00 6.00 RURD~ RIG_ MIRU 12:00 -19:40 ~ 7.67 ~ RllRD_~ R1G_ ~ MIRU 19:40 - 20:00 ~ 0.33 ( RURD~~ RIG_ ~ MIRU 20.Q0-20:10 0.97ISAFETYIDRIL (SURDRL { 20:10 - 06:00 9.83I NUND BOPE SURDRL ~2/23l2007 ~06:00-12:00 ~ 6.OO~NUND ~BOPE PJSM with WBI drivers and crews prior to rig load out. Load out pits', pumps, mud boat, boiler, generator, watertank and fuel tank. Mave Carrier, 5cope down sub, R/D camp and load ou~ Set generator, boiler and wafer tank. Set pumps 2nd pit uni~s. Set sub and scope up. Set mud boat and set carrier. Set euttings and Hanson tank. Set MI unit. Spot and set camp units. R/U same. PJSM with crane crew. Set doghouse w/ grey support iron. Raise and scope-up derrick. Set choke house and grey suppork i~on. Set 6op conex. Install stainvays and windwalls. R/U pits& Mud lines. Cont. R/U GD-1. R/U derrick board install cover over carrier RiU pi#s,stand pipe choke and dog houses. Set catwalk ru~ water lines. R/U degasser and flowline. Bertn rig, set bulk cement tank. set # 3 mud pump and Epoch unit. Set bea~er slide. Cont. run electHcal and service lines. Cont. RU. Very high winds and cold temps. Stage top=Drive. Thaw Crown-O-Matic. Hang Torque tube. Trouble shooting hyd problem with floor corner confrols-forderrick winches, suspect hoses. Repiacing them. P/U tapd~ive. Continue RU topdrlve. lnstall beaver slide. R/U topdrive serviceJoop, kelly hose, bales, and elevators. Pump up top drlve compensators. Ci0 control vaNe on v-door tugger conVols. Install shaker screens. Fili pits w/water. Thaw out cellar ice and pump out water, PJSM. Cont. to steam cellar and pump outwater. Cut 2fl" cc>nductor and dress cut. Weld base plate and gussets to conductor. N!U kill line. Install 21 1/4" 2000psi starter head. 7est head to 500psi/10min. Generator #1 exctter hurned but. 'Fire' called over Gai-tronics. Good crew response. Na live fire. Isolated power. Galled GAT and expect replacement parts to arrive by noon tomorrow. This makes 5 exciters failing along with 3 regufators nn fFris generator. No simitar history problems with gen #2 wh+ch is identicel. Regroupsand have PJSM to review pfan forward and NU 20" diverter. Having 2 gen at this point npt critical. NU 20" diverter. InstaO flow line extension. Hald PJSM and then RU' risec Hook-up Koomey. i Mean time having problems with inadequate make-up J breakout torque on topdrive, problem seems ta be in POT board. Will need to dise~ss with Tesco later this AM. Continue ehasing lack of hydraulics to floor control sfation for flaor winches. , N!U 16" knitevalve and 16" diverter line. RiU turnbuckles, bleederline; ' and trip tank lines. {Troubleshoot tugger and top drive problems whife continue to WU, C/O confraler card in boiler), C(a airboot on flowline. 't2;00 - 93;00 4.Q0 SAFETY MTG_ 13.00 - 16:30 3.50 REPAIR RIG_ 16.30 - 48:00 1.50 TEST~ I BOPE I SURDRL 18:00 - 29:30 3.50 REPAIR RIG_ SURDRL 29:30 - 00;00 I 2.5Q1 RERAIR Weekly one hour safety meeting wiffi both crews. Trouble shoot topdrive and floor red tugger problems. Replaced complete tugger control valves with new and now working, Seals leaking on Bluewinch and stili inoperable frvm either control positEon. Functian test 20" diverter s~stem alona with Koomev. AOGCC rep Bob Noble witnessed. Calibrafe and test gas alarm system. Co~tinue trouble shooting topdrive problems. Have narrowed down problems to within the topdrive itself. Have had 3 electicanlmechanics working the problem all day. Released them to get some rest. They'll return in AM. Need to conference call with Tesco in /~M. PJSM then remove'blue' winch from the derri~k. Will take into town in prinled: 1112612007 2;02;42 PM ~ ~ Marathon Oil Co_mpany Page 2 of 11 Operations Summary Report Legal Vlleil Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK S7ATE 3 Spud Date: 2/23/2007 Event Name: ORIGINAL DRILLING Start: 2/10/2Q07 End: Contractar Name: GLACIER DRILLING Rig Release: Group; Rig Name: GtACIER DRILLING Rig Number; 1 Date From - To Hours Code Code ~hase Description of ~perations 2/23/2007 21:30 - 00'04 2.50 REPAIR RIG SURDRL AM for repairs. 00:00 - U6:OQ 6,00 PULD_ DP_ SURDRL PJSM. Pick-up 48 jts 5" DP and 21jts 5" HWDP plus jars. 2/24/2007 06:00 - 11:00 5.Q0 REPAIR RIG SURDRL Continue to trouble shoot tap drive~isolated problem to compenstaors on the dennison pumps, adjusted compensatorsj. PJSM Rebuild ~" standpipe valve(C/O seat and gatej. 'I T:00 - 12:00 1.00 REPAIR E21G_ SURDRL C!O saver sub on top drive to 4 9/2" IF. Change grabber dies and change ouf bell guide. 12:00 - 14:30 2.5Q REPAIR RIG_ SURDRL PJSM. Prep M install repafred tugger unit. Work on manlift units. Layout BHA. 14:3Q -16;3U 2.00 REPAIR RlG_ SURDRL install repaired tugger unit (blue #ugger unit). 16:30 - 17'00 0.50 SAFE'PY MTG SURDRL PJSM, SafeEy meeting fior P/U BHA. 1`i:00 - 20:20 3.33 PU~D BHA_ SURDRL PU BHA #7 ( bit to MWQ) 20:20 - 22:00 1.67 DRILL_ ROT SURDRL Tag up at 70' KB: V1/ash to 89'. Drill ahead httting coal s~am at 95'. Drill to 195'. 400gpm 525psi RT= 9.5hrs AST= 0 Spud NS3 at 2020hrs 2-23 2007 22:00 ~ 22>30 0.50 TRIP DP SURDRL TOH with 2 sttl5 DP. 22:30 • OOs00 ' 1.50 PULD BHA_ SURDRL PU remaining BHR. ( flex collars, shock sub} 00:00 - 06;00 6.00 DRiLL SLID SURDRL Directionally drili ahead f! 195' which is the kick-off point Inerease pump rate #0 625 gpm 1080psi Drill to 511'. AST=-3.0 RT= 1.0 2/25/2Q07 06:00 - 72:00 6.00 DRILL_ ROT_ SURDRL Dir driU and survey F/511' to 1001'(ART=Ohrs AST=3.9hrs}, UP 45K DN 45K Rot 45K TQ 2-3K 12:00 - 18:00 6.00 DRILL_ ROT_ SURDRL Dir drill and survey F/1,007` to 1443' (ART=.9hrs A57=3.Ohrs) UP 57K DN50K Rot 54K TQ 3-5K 18;OQ - 21;30 3.5Q DRILL ROT_ SURDRL Continue drilling ahead f/ 1440' to 1640' TD. Up wt= 62k Dwn wt= 45k Rot wt= 53k Tq= 4-5k AST= .4hrs ART= 1.8hrs 21:30 - 23c95 1.75 GIRC MUD SURDRL Circulate BU x 4 Pump 25 hi-vis pill. 23:15 - 02;30 3.25 TRIP_ WIPR SURDRL Wiper trip to shoe. LD shock sub. Hole good shape. No major overpulls, Max overpull 15k at 1240'. SLM no correction 42:3D - 04:00 1.50 TRIP` WIPR SURDRL Wiper to bottom good to 12D0' than took additionai wt to bottom. 04:00 - Q6:00 2.00 CIRC MUD_ SURDRL Circulate BU 2x pump hi-vis pill with some nut plug. Annular vol 4150 sfks seen nutplug at 3800 stks. Possible channeling. Pump 20 bbl dry job. 2/2fi/2Q07 06:00-07:30 1.50 TRIP DP SURDRL POOHw/DP. Q7:30 - 09:30 2.00 PULD BHA SURDRL L/D BHA. 09:30 - 11;30 2A0 RURp CSG_ SURCSG PJSMlJSA. WU Weatherford CSG tools. (WU long bafes and side doa~ csg elevators). 11:30 - 1~:00 1.50 RURD CSG SURCSG pJSNllJHA cont. WU CSG tools. 13:Op - 17;30 4.50 RUN_ CSG SURCSG Run 9 5/8" CSG (baker lok shoe track). M/U swedge and circ. through shoe traek. Run total of 40jnts 9 5/8" 40ppf L-8D Butt CSG and landing jaint to 1635'. UP 67K DN 35K 17:30- 18:00 1.50 CIRG MUD SURCSG Circ. 95/8"CSG. Condition mud 19:00 - 19:30 0.50 PULD ~ EQIP SURGSG MU Bj`s cementing head. 19:30 - 20:10 0.67 C1RC MUD _ SURCSG Resume circulation and hold JSA with all crew members. Review hazards and plan forward, 20:10 - 22:40 2.00 PUMP GMT SURCSG With rig pumped 38 bbls Mud Klean.witfi re dye. 5wap to BJ then pump 5 bbls H2O. PT lines to 3000psi. Drop bottom plug. Mix and pump 186 bbis of 12.Oppg cement (w/ .05 #/sk Statie Free + 2% CaCl2 + 22% ~W-6 +.3% CD-32 + 1 gal FP-6L ! 100 sx + 1°lo Sod Met. + 20%0 71Y2612DD7 2:OZ:A2 PM ~ ~ IVlarathon Oil Cc~mpany p~ge 3 of 1'~ Operatrons Summary Report Legaf Well Name; NINIl.CHIK STATE 3 Common Well Name: NtNILCHfK STATE 3 5pud Date: 2/23/2007 Event Name: ORIGINAL DRILLIyG Start: ~I1~Ji2007 End: Contractor Name: GLACIER DRfLLING Rig Release: Group: Rig Name; GLACIER DRILLING Rig Number; 1 Date 1=rom - Ta Hours Code C d Phese ~' ` Description of Oper~#ions oe 2/26/2007 20:10 - 22;10 2.00 PUMP CMT SURCSG 22:10 - 00:00 1.83 CLEAN RIG SURCSG 00:00 - 06:D0 6.00 WAITON CMT SURCSG 2/27/2007 06:00 - 08:00 2.OU NUND BOPE SURCSG 08:00 - 12:00 4.00 NUND BOPE SURCSG 72:00 - 13:00 1.04 PlUND BOPE SURGSG 13:OQ-14:00 1.00 NUND WLHD SURCSG 14:00 - 15:00 1.00 NUND WLHD SURCSG 15:00 -17:00 2.00 NUND ` BOPE SURGSG MPA-1 + 10.34gps N20) pumping at 4.5 6pm. Drop top plug then pumped 5 bbls H2O. Switched to rig'pumps and continued displacement with 116 bbls mud at 4-1/2 bpm in9iialfy then slowed ta 2 bpm in order for vac trvcks to keep up. Bumped plug un time with 750psi. Held 1500psi 5 min. Bleed down piugs held. CIP @ 2210 hrs 2-25`-07 While pumping cement, lost returns with 130 b61s away. Reciprocated` csg 5' and regained returns at 14U bbis away: Good returns for the remainder of the job. Circulated an estimated 50 6bis cement to surface. Landed 9-5/8" csg at 1635' KB Wash out 20" BOP stack and lines with 40 bbfs freshwaterwith cmt retarder added, Clean-up rig floor. WOC. Closed annular to help center with 20`' eonductor. Same time continue clean-up in cellar area. Repair frozen steam return lines ( lost boilee yesterday around 16QOhrs retumed to service around 2200hrsj. Start disposing used spud mud and cleaning mud pits. ND div~rter lirre and valve. Cont, to N/Q diverter knife valve. Rough cut 9 5/8" and L/D cut jaint. Clean pits. N/0 Bell nipple. N/D 21 1/4" Diverter. Fill pits with water. PJSM/JHA with crew caming on. Cornpiete N/D of diverter. Remove 21 1/4" Vetco starter head. Cut 20" cand. Final cut and dress 9 5/8" CSG. Instail 9 5/8" X 91" 5M Vetco sliploc welihead. NIU 11" 5M X 13 5/8" 5M DSA. N/U 13 518" 5M X 24" spacer spool. Test wellhead to 17:00 - OO:DO 7.~0 NUND BOPE SURGSG N/U R,S,Rd,A 13 5!8" 5M BOP stack. 00:00 - 00:15 025 SAFET'Y DRIL SURCSG Crew change. PJSM review remaining NU tasks and hazards. 00:15 - 04:3Q 4.25 NUND BOPE SURCSG MU hydraulic control lines. RU Flow line and t~ip tank plum6ing. RU catch can. Ghangeout lower pipe rams from 4" to 5"dp. Checking Koomey bo~tle pre-charge pressures. 04:3Q- Q6€Q4 1.50 RURD RIG SURCSG LD long bails RU normal drilling bails and elevators. CaOed AOGCC rep Lou Grimaldi with 2 hr notice @ D500 hrs. 06:00 - 07;30 1.50 RURD OTHR SURCSG Cont. to C/O bales and elevators and WU off tlritler side tongs: 07:30 - 12:30 5.00 TEST BOPE SURCSG PJSM. Test Annular, Upper variable rams, blind rams, lower pipe rams, inside manual choke, ehoke HGR, inner and outer kill line valv~s, kill line check, choke manifold valves 1-12, upper and lower top drive valves, TIW valve, IBOP valve to 250/3000psi 5min(lower pipe rams, rig floor LEL and H2S, flange between single gate and spacer spool, IBOP iailed and had to be retested. BOP fesf vtritnessed by tou Gramafdi AOGGC. 12:30 - 16:30 4.00 TEST_ BOPE SURCSG 4 hrs down time during BOPE test. 1fi:30 - 18;Q0 1.50 TEST BOPE SURCSG L/~ Test joint and test piug. Run Wear bushing. Test ran rental stand-by generatorfor 2 hrs. Everything was good. 18:00 - 22:Q0 4.00 REPAIR RIG_ SURCSG Unthaw frozen lines. Y in standpipe where pump #3 comes in, shock hose, kill line. 22:00 - 23:15 1.25 TEST CSG_ SURCSG PJSM then pressure test 9-5/8" suface casing to 2500psi for 3b min. 23:18 - OOi00 0.75 TRIP DP SURCSG PJSM then RIH with HWDP. 00:00 --06:00 6.00 PULD DP SURGSG Crew changeout. PJSM. Drift (2.875") and PU 5" drill pipe 71/2fi12007 2:02:G2 ~ ~ Marathon ~il Company Page 4 Qf ~~ 0-perations Summary Report Legal Well Name: NINILCHIK STATE 3 Common Wel( Name: NINILCHIK STATE 3 Spud Date: 2/2312007 Event Name: ORfGINAL DRILLIN'G Start: 2/10t2007 End: ContractorName: GLACIER DRILLING Rig Release; Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours C~de oae Phase Description of Operations 06:00 . 15:00 9.00 PULD_ DP, SURCSG Cont. P/U 5" drillpipe(total 156jnts). 15:00 - 17:3~ 2.50 RURD OTNR SURCSG R/U Baker autotrack surface system, 17:30 - 19:30 2.00 PULD BHA SURCSG PJSM. P!U 8,5" bit and Autotrack BHA. 19:30 - 20:00 U.50 PULD_ BHA_ SURCSG Progr2m Auto Trae 20:00 - 21:3~ 1.50 PULb_ DP_ SURCSG Continue to Pick-up BHA,RIH With HWDP and Drilling Jars from Derrick 21:30 - 22:00 0.50 TRip DP SURCSG RIH With 5" Drill Pipe to 1405' 22:00 - 23:00 ' 1.00 SERVIC RIG_ SURCSG Service Rig and 7op Drive 23:00 - OOi00 1.00 TRIP_ DP_ SURCSG RIH With 5"Drill pipe to 9<531' Break C~rc. Wash Down and Tag Landing Collar At 1593' 00:00 - 09:OD 1.00 DRILL CMT SURGSG Drill out Ftoat at 7593' 01:00 - 02'OQ 1.Od DRIIL CMT SURGSG Continue to Drill Cement From 9593' to Shoe at 1635' 02:00- 02:30 0.50 DRILL CMT SURCSG Drill Cement in Old hole from 1635'ta 1fi40' 02:30 - 03:OQ 0:50 DRILL_ ROT_ SURCS~ Qrill Open Hole from 1640' to 1660' 03:00 - 03;30 0.50 GIRC MUD SURCSG Circ. Bottoms up For Sampie D3:30 - 04:00 0.50 CIRC MUD SURCSG Gha~ge Over Mud ta 9.0# Flow Pro Mud 04:00 - 05:Q0 'I.00 TEST LO7 SURCSG FIT Test at 1& ' Press. Droaped to 210 asi in 30 min. 05:00 - 06;00 1.00 DRILL_ ROT_ IN1Df2L 3/2/2007 06:00 - 16t00 10.00 DRILL ROT_ 1N9QRL 16:00 - 16;30 ~ 0.50 ~ GIRC_ ( MUD_ 16:30 - 23;QQ 6.50 DRILL_ RQT_ INIDRL 23:00 - 23:30 0.50 REPAIR RIG_ IN1DRL 23:3Q-00:00 0.50 CIRC MUD IN1DRL 00:00 - 06:00 6.Op DRILL ROT IN1DRL 13/3/2007 06:Q0 - 07:00 1.00 GIRC MUD INIDRL 07:00 - 09:30 2.50 TRfP WIPR INIDRL 09:30 - 12:00 2.50 TRIP WIPR IN1DRL 12:0~ -13:30 1.50 5ERVIC RIG IN1DRL 13:30- 15:60 1.50 TRIP WIPR IN1DRL 15t00 - 15:30 0.50 CIRG_ MUD_ INIDRL 15:30 - 06:00 14.50 DRILL_ ROT_ IN1 DRL 3!4/2007 06:OQ-12:Q0 6.00 DRILL_ ROT_ INIDRL 12:40- OOi00 12.00 DRILL ROT_ INIDRL OO:OD-01t00 1.00 CIRC_ MUD_ IN1DRL 01.p0 - 06:00 5.00 TRIP_ W1PR INIDRL Est. Perimeters for Auto Trac ATK Driiling Sys#em Dir driil and survey FJ1660` to 2350' ART=8.8 Hrs. No Gains No Losses Max, Gas=34 Units Girc. Hi Usc. sweep 35 bbts. 3# Per Barrel Flo Visc. Dir. DriU and Survey F/2350' to 2854" ART=4.5 Hrs. No Gains No losses Max. Gas= 33 Units Work Drill String While Changing Ouf Swab on #7 Pump Break Circ. With Two Pumps And Make Conn. Dir. Drill and Survey F/2854'to 3292` ART=3.7 Hrs. No Gains No losses Max. Gas=36 Units Circ. clean(CBUX5, 563GPM,, 1400psi) POOH to 24p0'(hole tight overpuit 25-50K increasing as POOH), B/R F/2400 to 1640'(hole tight). PJSM/Service rig. RIH -had to rotate to get motar stab past shoe, otherwise hole in good condition. Wash last stand down(no Fill}. GBUX1(very large volume of clay across shakers). Dir d~ill and survey F/3292' to 4373' No Gains No Losses Max. Gas 39 Unit5 Dir drill and survey F14373' to 4755' {pumped 30bb13#lbbl flovis hi-vis sweep @ 4682). UP100K DN52K ROT 60K TQ 4-7K Dir drilf and survey F/4755' ta 5310' No Gains No Losses D~iiling Rate btopped Off@5047' to 1' Hr, Pumped 30 bbl 3# bb) Flovisc hi visc Sweep @5047' 50% More Cuttings W/ Sweep- Pumped Sweep With Lubetex ,Increased Drilling Rate 80`-120' hr.When Lubetex Was Circ Up Rnnulus,llp wt.=105K dn. Wt =55K Rt wt.=65K Tq.=6=9K Circ. Hole Clean For wiper Trip @5310' POOH From 5310' to 4822' (hole tight 25-35K}, B1R ~rom 4822' to '2:02:42 PM ~ ~ Marathon Oil Company Page ~ of 11 Qperations Summary Report Legal Well Name; NINILCHIK STATE 3 Common Wefl Name: NINILCHIK STATE 3 Squd Date: 2J23t20Q7 Event Name: ORIGINAL DRILLING Start: Z/1Q/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Grou:p: Rig Name: GLACIER DRILLiNG Rig Number: 1 C3ate From - To Hours Code Cp~e Ph~se ' pescription of OperafiSons 3I4/2~Q7 01:00 - 06:00 5.00 TRIP WIPR IN1 DRL 3735 (some high high torque while backreaming}. 3!5/2007 06;00 - 07;30 1.50 TRIP WIPR IN1 DRL Cont. to B/R out of hole to 3290'{start r~f previously drilled hole). 07:30 - 0$;00 0.50 GIRC_ MUD_ IN1DRL Circ. clean(CBUX3, large quantify of Gay across shakers). 08:00 - 11:00 3.00 TRIP_ WIPR [N1DRL Attempt to PpOH @ 3290(too much over pulf 30K}). B/R 3290' to 285Q. POOH 2850' to CSG shoe(hole in good eondition). 11:00 - 12;00 1.00 SERVIG RIG W1DRL Service rig. Blow down top drive and mud IineS. 12:00 - 14;DU 2,00 TRIP WIPR INIDRL RIH wash last stand down(no fill, hale in good condition). 14:OQ - 14:30 Q,50 CIRC_ MUD_ IN1DRL Circ. clean(CBUX1, farge quanUty of clay across shakers). 14:30 - 18;30 1,00 DRILL_ ROT_ IN1DRL Dir drill and survey Fl5310` to 5340'(lasf 5 feet ROP dropped and torque became erratic}. 15:30 - 1fi:00 Q.50 CIRC_ MUD IN1DRt~ Circ. and increase lubtex concentration to 1°fo(normal drilling 16:00 - 23;00 7.00 DRILL_ ROT_ lN1DRL Dir drill and survey F/5340'-5696' Add Lubetex to 2% Concentration at 2000 Hes, Up wt.=1 OOK Dn. wt.=55K ftot.wt.=65K Torq.=5-7K 23:00 - 00:30 1.50 CIRG_ CFLD fN1DRL Pump 4U Bbl. Nutplug Sweep at 10ppb- When Sweep Circ out Bottom of Toal st~ing Bring pump rate back up and no signal with NAWD Too1s Attempt to unplug. 00:3Q - 01:00 0.50 CIRC_ MUD (N1DRL Mix and pump 30 bbi. 9.5# KCL Fiil To unplug tool 01:00 - 01c30 0.50 CIRC MUD IN1DRL Work Pump press. F/ 200 psi to 2200 psi to , try tfl get a signal ftom ATK 0'1:30 - 0~:30 'f.00 CIRG_ MUD IN1DRL Mix and pump 30 bbl. 9.5# KCL pilt with 4 Drums Lube#ex to try to unplug toof 02:30 - 03;00 0.50 CIRC MUD IN1DRL Girc and Reboot Tool to get signal from ATK 03:00 - 03:.30 0.5Q DRILL_ ROT_ fN1 DRL Dir drill and survey Fl5696'-5705' Up wt.=100K Dn, wt.=55K Rot wt.=65K Torq.=5-7K ,Max. Gas=60 Units 03:30 - 06;00 2,50 TRfP_ DP_ IN1DRL PJSM;POOH W/ ATK Tool to Troubleshoot and Ghange out tool ' 3/6/2007 06:00 - 1`I:DO 5.Q0 TRlP_ DP IN9 DRL Cont. POOH. 11:00- 12:30 1.50 TRfP DP W1DRL PJSM. UQ BHA. 12:30 -13:30 1.OQ TRIP BHA IN1 DRL Down load data ftom MWD-sub. 13:30 - 15:00 1.50 TRIP BHA INIDRL L/D BHA and bit. 15:OQ -16:30 1.50 TRIP BHA IN1DRL P/U bit and BHA. , 16.30 - 17:30 1.00 TRIP BHA` INIDRL Program MWD Toois 17:30 -18:OQ 0.5p TRIP_ BHA IN1 DRL Pick-up BHA I~ 18:OQ -19;00 1.00 TRIP BHA_ IN1 DRL Cont. to RIH w/BHA, to 9 5/8 Shoe I 19;00 - 20:00 1.00 CUT_ WIRE IN1DRL Slip drilling line 33' , 20:00 - 22:00 2.90 TRIP_ DP_ IN9 DRL RIH to 19U6' Fill pipe and Test ATK Tool Also Filf at 3990' and 5625'. 22:D0 - 2230 0.54 WASH FILL IN1DRL Washdown last stand down(no fill). ' 22:3Q - 06:00 7.50 DRiLL ROT IN1 DRL Dir. Drill F-5705' to 6133' ~I Up Wt.=105K Dn. Wt.=55K Rt INt.=70K Max.Gas=50 Units No Ga[ns'No Losses Add l~ubefex to 3% at 0430 Hrs.and 6015' 3/7/2007 06:00 - 12:00 6.00 DRILL_ ROT_ IN1DRL Dir drill and survey F/6133' to 6550' (pump hi-vis sweep @ fi510` 11:15hrs, 30bb13#lbbl flo-vis sweep, very littfe increase in cuftings). ' 12:00 - 21:00 9.00 QRILL_ RQT_ IN1DRL Dir drill and survey F/6550' to 7243` T.D.Well @240Q hrs. Up Wt.=ti15k Dn. Wt.=6UK Rot.W t.=75K Torq.=5-9K No Gains No Losses Max.Gas=50 Units 21:00-22':00 1.OQ CIRG MUD IN1~RL Circ.Well Cleanand Condition Mud Gheck Flow , 22:D0 - 22;30 O.6Q TRfP_ DP_ W1 DRL POOM' From 7243` To 5950' Hole Pulling Tight 11/26/2D07 ~ ~ Marathc~n Oil Company ' Page 6 0~ 11 Operations Summary Report Legal Well Name: NINILGHIKSTATE 3 Common Wel! Name: NINILCMIK STATE 3 Spud Date: 2/23/2007 Event Name: ORIGINAL DRILLING Start; 2/10/2007 End: Cont~actor Name: G~ACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Da#e Frorn ~ To Hours Code Code Phase Description of Operations 3/7/2007 22:30 - D3:30 5.00 CLNOU GH_ IN1 DRL Wash and Baokream Tight spats From 6954' to 5374` 03:30 - Q4;30' 1.00 TRIP_ DP IN9 DR 04:30 - 05>00 0.50 WASH FILL IN1DR I' 05:00 - 46:00 L00 CIRC GFID IN'!DR 3/8/2007 06:00 - 07;00 1.OQ GIRC_ MUD_ IN1DR D~:00 - 44:30 7.50 TRIP_ DP_ IN1D 14:30-17:00 2.50 TRIP_ BHA_ IN1DR 17.00 - 18:30 1.50 PULD,~ I EQIP IN1DR 18:30-D1c00 6.50 PULD~ LOG_ IN1EVL ~'1_00 - 06:00 I S.OQI TRIPT IDP_ I IN1EVL 06.00 - 07:00 1.OOI TRIP_ DP_ IN1EVL 07:00 - p9;00 2.00 CIRC_ MUD_ IN1EVL 09:00 - 10:00 ~ 1.00 ~ LOG_ ~ ON_ ~ IN 1 EVL 10:00-18:00 ~ 8AO~LOG_~OH_ ~lN1EVL - 20:00 ~ 2.00 - OQ:00 00:00 - 06:00 I 6.00 3/10/2007 I~$ 30 - 1~9:00 ~ t0 OTHR IIN1EV Pull Pipe From' S374' to 5124' Hole Slick L PJSM; R1H From 5124' ta 7205' L Filf DriU Pipe and Wash From 7205'-7243' TD Hole 51ick No Fill L Girc. and Condition Mud-Mix and Pump High Visc. Sweep @ 7243' 30 bbl. 3# pe~ bbl.Flo Visc. L Circ/ Cond mud spot lubetex in open hole Monitor well, pump dry job, biown down lines. RL Drop 2.3 drift, SLM F- 7243'- 85Q' No gain/loss Hole slick Correct hole fill, No correction ta Slm L POH UD bha down load data from autotrack Iwd. and lay all autotraek tools down R/D Floor control manifold forautotrack. L Giear Floor ,Rig Down and Remove Autotrak Bypass and Lines Prep and Layqut Tools for Shuttle Logging Run= PJSM;Pick-up Shuttle logging toois-Rabbit Jars Pick-up HWDP Continue Running in Hole With Quad Combo Shuftle Logs Circ. and Testtools at 1544'-3560`-5576' Up WY.=90K dn, Wt.=6flK Cont RIH W/ shuftie logging tools to 7030' Circ. Condt Mud. mtrd Wt 1Q.0 out and 9.8 in. Run Centerfuge van condifion mud. Reduce MW to 9.7 pump rate 6bbl min 1300psi Pull up to 7428' drop dart to deploy shuttle logging tools. pump at 6bbimin for 1300stks. pump pressure 450psi Reduce pump rate to 1.5bbi min 175psi. at 2565stks sight inc in pressure ta 220psi No indication logging tools deployed. POOM and log with shuttle system f- 7128' - To Shuttle assy L UD 3 U2 Drillpipe, x overs, upper and lower latch assy. UD Stablizer and reamer guide shoe Logging tools Dep(oyed. Break Down Lagging toofs and UD. Boftom 25' Section of tools damaged, and Bent. RUNPUL~ WBSH ~ IN1CSG Pull wear Ring ;Set Test PIug,Cha~ upper rams, Chan e variables to 7" casin rams,Shell test BOP to 250 psi low to 1500 psi high.Test run landing joint and casing hanger RURD CSG_ IN1CSG Rig up to run csg Change bails .Rig up La Flur tonl Hang tongs Set base plate and slips,Set cent.on flaor RURD_ CSG_ IN1CSG Cont Rig up of csg. toois RUN ~ CSG_ IN1CSG M/U and bakerlock shoe track, Ck Flaats RIH RUN CSG_ INIGSG Follow shoe track W! 7" 26# L-80 BTC Casing Girc At 1625' rsg. volume. continue run csg. F-1625' -72?8' 19:00 - 19:34 Q.50 RUN_ GSG_ IN1CSG Pick-up Landing join#, Land Casing V1lashing Down 30' 19:30 - 21;30 2.Q0 CIRG MUD IN1CSG Circ. B/U Rig down casing equipment 21:30 - 23A0 1.50 PUMP CMT_ IN1CSG PJSM;Pump eement job-Pump 2 bbls. water,test lines to 3000 psi,Drop 1st p1ug,Pump 30 bbls. MCS4D sweep, .~•02~~42 PM ~ ~ -- Marathon Dil Cornpany Page 7 of 1~ Operatians Summary Report Legal Well Name: NINILCHIK STATE 3 ~ommon Well Narne: NINILCHIK STATE 3 Spud bate; 2/23/2Q07 Event Name: ORIGINAL DRILLING Start: 2/10/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number_ ~ Date From - To Hours Code p~ase ' Description of Operations Code 3/1pf20Q7 21:30 - 23;00 1_50 PUMP CNfT_ W1CSG 10# ppg,Pump 335 sx. Lead cmt.@12.5#ppg(Class G) +20%M PA-1-~-1 %GaCl2+2 %S MS+.3%oF L-52+.2%CD-32 +.5%static ftea+1ghs FP-6L) Pump 165 sx. tail cement @15.8#PP9~GIass G)+2%oKCL+.6°/aFL-63+.5%AEG-1+.3% CD-32+.1%ASA-301+.1%oR-3t>05%staic free+1ghs FP-6L Yield 1.167 cu. ft. sx.Drop 2nd plug:pump 5 bbls.water 23;00 - 00:00 1.00 PUMP CMT_ IN1 CSG Displace cement with mud pumps 5: bbls min. Bump plug with 5830 stks. 273 bbls. as caculated,ClP @23:45hrs Pump Press 88Q psi Bumped Piug with 1500 psi. Hold 10 min. Check floats. OK Shoe @7228' F/C @7144' Got back 30 bbl spacer and 15 bbis. cement to surface. 02:00 - fl4:Op 2.00 REPAIR RfG INICSG Pull Picture Nipple to repair lift eye,Blow down BOPE mud system ,Repair boot seai on pitcher nipple. 04:00 - 05:00 'I.OR TEST_ WLHD IN9CSG Run packoff on HWDP inject upperand lower seals anB test to 5000psi for 10 min. (good) D5:00 - 06:00 1.00 RURD CSG IN1CSG Rig up floor from csg. job and clean pits. 3/11/2007 06:00 - 09;00 3.Op RURD_ OTHR IN1CSG PJSM: G/O upper pipe rams F- 7" to 2 7/8 X 5 variable C/0 lawer rams F- 5" to 4" 09:00 -10'00 1.00 CLEAN ' TANK IN1CSG Clean and flush out pits, prep for new flqw pro mud. 1 Q:00 - 11:30 1.50 RURD_ OTHR lN1 CSG R/U ~foor set drillpipe spinners. and rotary tongs. 11:30 - 19t00 7.50 PULD DP_ IN1CSG Cfd liners in mud pumps, Mix Mud,Build 500 bbls. 9.6# Pro Flo Mud 19;00 - 06:00 1`1.00 PULD_ DP_ IN1CSG Change Out Spinners PJSM;Lay down 5" Drill pipe from Derrick. Note Day lighf savings time. etlvanced time 1 hr. 3/12/2007 06:00 - 07s30 1.50 PULD_ DP IN1 CSG Cont. lay down 5" drilipipe for a total of 22Tts. UD 07:30 -10a30 3.00 RURD_ OTHR INICSG C/O UD 5" DP handli~g tools R/U 4" DP Hantlling tools. C/O savor sub and grabber dies. 10:30 -14:30 4.OU TEST BOPE IN1GSG Nt1UTest''t. SetTest Plug. Test BOP and ail rel~ted components 250I3500. alI passed. Peform Accumlator drawn down test Pull test plug , set wear bushing ,Rld tesi jt. Bkow down all lines. Witness wa~ed by Jim Regg AOGCC. 14:30 - 15:30 1.00 TEST CSG IN1CSG Test 7" Cs . 25D0 si / 30min. 15:30 - 16:30 1.00 REPAIR RIG_ IN1CSG Set Campensator on #1 mud pump 16:30 - 20:00 3.50 PULD~ DP_ INICSG PJSM: P/U prift and stand back 4pjts 4" drillpipe uncoated pipe in derrick 20:00 - 22:30 2.50 PULD BHA IN1CSG PJSM: P!U and M/U 6~118 bha ,Rifi 22:30 - 06:00 7.50 PULD DP_ IN1 CSG P/U Drift and Rih W/ 4" drilipipe Picked up 219 joinfs total 3/13f2007 06:00 - 08:30 2.50 TRIP DP_ INICSG COnt. P/U 4" drillpipe Rih to 7100' 0$:30 - 10:30 2.00 DRILL_ CMT_ IN1CSG Wash F- 71~Q' Tag Floaf Coilar At 7144' Drill Out F/Cto 7145.5 Dri0 Firm Cement F- 7145.5 to 7228' Drill Dhoe At 7228'; Clsan out to 7243, Drill New hole 70 7264' 10:3Q -11:30 1.00 CIRC_ MUD_ fN1CSG Circ B/U Clean piil pit mix hi vis spacer 14:30 - 12:30 1.00 GRC MUD lN1CSG Pump 30bb1 spacer foAowed by 25~bbis 9.4ppg filow pro mud . Displace to Hanson tank 12:30 - 13;00 0.50 TEST LOT _ INICSG ' . si=17.2EMW 13:00 -15:Q0 2.00 TRIP_ bP ` PRIDRL Monifor well. pump dry job Poh F- 7264' For T' x 4 3/4" RWD Drilling Assy. PM ~ ~ Marathon Oil Company Page 8 of 1~ Operations Summary Report Legal Well Name: NINILCHIK STATE 3 Common Weli Name: NINILGHIK STATE 3 Event Name: ORIGfNAL DRILLING Contractor Name: GLACIER DF~ILLING Rig Name: GLACIER DRILLING Date From - To I Hours C~de I ~~b ~ Code ~ 3l13/2007 ~ 15:00 - 15'30 ~ 0.50 ~ REPAIR ~ RIG ~ PR1 DRL 15:30-98:30 3.00 TRIP_ DP PRIDRL 18:30-20:00 1.50 PULD BHA PR1DRL 20:00-21:30 1.50 TRIP DP_ PR1DRL 21;30-22:00 0.50 PULD BHA PR1DRL 22:00 - 02:00 4.00 PULD DP PRIDRL 02:00 - 03:30 1.50 CUT WIRE PR1DRL 03:30 - 04:00 0.50 SERVIC RIG PR1DRL 04:00 - 06:00 2.00 DRILL ROT PR1 DRL ~ 3/14f2007 ~ 06:OQ- 0~;00 ~ 24.00 ~ DRILL_ ~ SLID ~ PR1bRL ~3/15/2Q0T I06:00- 12:A0 ( 6.00~ DRiLL_ ~SLID ~PR1DRL 12:00 - t8:00 ~ 6.00 ~ DRILL_ ~ SLID ~ PR1DR~ 18:00 - Op;00 ~ 6.OQ~ DRILL_ ~ SLID ~ PR1DRL 00;00 - Q0:30 0.50 WORK, PIPE PR1DRl. OOt30 - 01;30 1.00 DRILL_ ROT_ PR1dRL 01:30 - 02:15 0.75 WORK PIPE PR1DRL 02:15 - 03:00 0.75 CIRC_ MUD_ RR1DRL 03:Q0 - Q6:00 3.00 TRIP DP PR1 DRL 6/2007 06:00-08:00 2.00 TRIP DP PR1DRL 08:00 - 11:00 3.00 TRIP_ BHA_ PR1DRL 11.00 - 13:OQ 2.00 TRIP_ BHA PR1 DRL 13:00 - 13:30 0.50 SERVIC RIG_ PR1 ~RL 13`30 - 19:15 I 5.75 ~ TRIP_ ~ DP_ ~ PR1 DRL t9:95 - 00:00 ~ 4.751 DRILL, ~ ROT_ ~ PR1DRL Spud Date: 2f23/2007 Start: 2/10/2007 End: Rig Release: Group: Rig Number: fi Description of ~perations Switch to stand by generator, Nfain generafor having power surges. Cont POOH F- 4880' for RWD Drilling Assy. Pick up and make up Bitand RWb,MWD and HWpR Pick up and RIH with drill pipe.to 2305' Pick up and make up Shock Sub and Agitator Pick up artd drift 4" Drill Pipe RIH. T-7224' P,lSM;Slip and Cut Driliing Serv. Rig and Top Drive Tag Fili at 7263' Drill F-7284'-7300'Drilling 4 3/4"X 7" Hote Up 1Nt.=88K Dn wt.=44K Rot. wt.=65K Tq =6-7K Circ. Rate=300 GPM ART=.50 AST=.~O Drill Slide Rotate F-7340' - 8075' Up Wt.= 101K Dn. wt.= 46K Rt. Wt:= 71K Tq.=7:7K AST=11.4 ART= 6.1 Max. gas=104 Units Dir dtlll suroey F-8075 - 83q9' Up wt. 104k Dn,wt 46 k Rt. wt 78k Tq 6-8k No Gain/~oss Max Gas 111 units Ast = 2.8hr Art = 1.9hr Dir drill survey F- 8309 - 8515'. Up wt = 92K Dn wt = 48K Rt wk = 80k 280 gpm 2650 psi on btm 2150psi off btm, WQB = 5-6k Trq= 6-8k No gain or losses Max gas (conn} T40u AST~ 32hrs 109' ART = 1.7hrs 1Q7' Cur 1.1hrs Dir drill ahead f/ 8515' to 8585' then pumped 30 bbl hi-vis sweep. Brought 2x cuttings with it to surface. Gontinue drilling ahead to 8706' then lost comms with MWD tool. Lost approx 284 psi from previous off btm pressure. AST = 2.1 hrs ART = 2.1 hrs Work pipe wp pumps several times. Bring on pumps increase rate to 300gpm 2200 psi off btm and continue working pipe. Drill ahead rotating from 8706' to 8749' 300 gpm 2250 psi on btm pressure. ART = 0.9hrs Pump 20 freshwater pill to possilbly clear deb~is from MWQ and work pipe. No resppnce from tool. Cycle pamp and try #o survey. "fool appears dead. Circufate all light fluids from welL BGG > from 20 to 38u Pull 5 stds. Pump dry job. POh T-4520 At 0600hrs Cont Foh F-4520 - 2326 UD Agitator and Shock Sub. Cont poh W/ drillpipe. 2326' tn 812'. Poh UD bha and bit. Inspec# Mwd, found small piece of metal weged in pulser. Rurr agitator in the h~le to 75' and function test. ok M/U bha # 7 RIH pulse test mwd Servce rig. Top Drive, Bocks ,Swivel and Crown Inspect Carrier and service. ( found loose yoke on drive line ) repair same. RIH to 2300' P/U shock sub & agitafar. Cant RIH w/ drilipipe F-2326' - 8749'. Break circulation. 2 pumps 105 spm 260gpm 2106psi off btm pressu~e. Continue directional drilling ahead f/ 8749' few problems wikh staliing which maybe due to the more aggressive bi#:being used. Start SWACO Solids Control Unit. Bu gas 224u Printad:~. 1:112612007 2c02:42 PM ~ ~ Marafhon 0i1 Company ` page 9 of ~ 1 Operations Summary Repart Legal 1Neli Name; NINILCNIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date; 2i23/2Q07 Event Name: ORIGINAL DRILLING Start: 2/1Q/2007 End: Contractor Name: GLACIER DRILLiNG Rig Release: Group: Rig Name; GLACIER aRILL1NG Rig Number: 1 I I 1 c~ ~-, I: I Date I From - ' 6/2007 ~ 19:15 - 00;00 ~ 4.75 ~ dRiLL ~ ROT_ ~ PR1 DRL Q0:00 - 06:00 ~ 6,OOj DRIIL_ ~ SLID ~ PR1 DRL ~ 3/17/2007 ~ 06:00 - 13:00 ~ 7.00 ~ DRILL_ ~ ROT_ ~ PR1DRL 13 00 - 14:00 1.00 CIRC_ MUD_ PR1 DRL 14 00 - 16:15 2.25 REPAIR RIG_ PR1 DRL 16 15 - 22:00 5.75 TRIP_ DP^ PR1 DRL 22.00 - 23:30 1.50 TRIPT BHA_ PR1 DRL 23:30 - 00:30 1.00 TRIP_ BHA_ PR1 DRL OOi30 - 04;30 4.00 REPAIR RIG_ PR1DRl. 04:30 - Q4:45 0.25 CIRC NIUD_ PR1 DRL 04:45 - 06:00 125 TRlP DP PR1 DRL 3/18/2007 06:OQ -10:30 4.50 TRI'P DP PR1 DRL 10:30 - 18:00 ~ 7.50 ~ DRILL_ ~ RQT_ ~ PR1 DRL 18:00 - 00:00 J 6.00 ~ DRILL_ ~ ROT_ ~ PR1 DRL - 06:00 ~ fi.00 ~ DRtLL_ ~ ROT_ ~ PR1 DR~ C~escription of Operations 285gpm (3 pumps) 2200psi off btm 200-400psi diff. EGD=11.23ppg WQB = 5-6k Drilled to 8880'. ART= :9hrs AST= 2.2hrs Direckionally drill ahead f/ 8880' to 9077'. Shutdown SWACO SCU with mw @ 9.4+PP9• 280gpm 2225psi off btm 200-450psi diff. Bit still has tendency to stall if pushed. At 9D19' inc to 300gpm and helped RQP. ART= 1.7hrs AST= 2.8hrs Max bgg gas 115u avg bgg gas 30u Continue directionaliy drilling ahead f/ 9q7T - 9379' Pump hi vis sweep at 9185`. Sweep retumed 100% inc in cut#ings.Driil ahead to 9204'. Lost pulse fram MWD. Drill fa 922Q' Attempt to regain signal from mwd .Jnc Pump rate to 270spm 3050 psi Bleed Off and work Pipe. Mix 10bbls kcl pill Attempt to clear mwd. No comms. ftom mwd. Up Wt = 121k On. Wt.=65k Tq. 6.5-7.5k 27Qgpm 2200psi! 2450psi. ECD =11.35 . Note: Inc tubetex to 4% due to torque 8.5 -9.5k Ast=.6 Art. = 4.7 Max Gas 211u. BC Gas 4Du Circ b/u. At 8379' 270gpm 2200psi 210stks B/U gas 137units Repair/ Replace washpipe on top drive swivel. Monitor well, pump dry job poh F-9379 due to loss of comms. f~om mwd. Inspect'screen" in upper section of Agitator and was ciean. LD same and shock-sub. Confinue POH. UD BHA. No visabte trash in MWD. Mud motor was unexpectedly locked up. One plugged }et in 4-3/4" bit with hard packed shale. PU new MWD and used (46hrs) motor and scribe TF's. MU remaining BHA. RU ta pump test MWD buEswivel packing still leaks. Laasen and realign gooseneck flange: Teardown and rebuitd washpipe packing. Pressure test to 25~Opsi. Circulate and pulse test MWD - good test. TIH with DP. Gontinue TIH with 4" DP. Fi11 pipe at 3~50'.& 7255'. Add 15' 3 1/2 if'pup with drill pipe screen and X-overs at 8407' . tag ledge at 8167'-8172' and 9383-9388' wash to bttm 9379' Max B/U gas 477units Directionally drip ahead f- 9379'- 9720'. 300gpm 2325 psi off bfm 2550psi on bottom ECD= 11.23ppg up WOB= 5-7k ART= 7.Ohrs Directionally drill ahead f/'9720' to 9958'. 300gpm 2325psi / 2550psi w! 4-7k wob 70-SOrpm's trq= 8.2k ART= 6.Ohrs Held BOP drill. C/O shaker screens fo 325 Directionally drill aheatl f/ 9958' to 10132' 30Q gpm 2375psi) 260~psi W06= 3-7k depending on surveys 80 Trq= &90k Up wt` 135k Dwn wt= 68k Rot wt= 98k ART= 3.1 AST= 1.7 Max gas 454u 3l19/2007 06:00 -12:00 6.00 DRILL_ ROT_ PR1 DRL Continue to directionally drill ahead f/ 10132' -1 D420' 300gPm 2450/2675psi Wob = 5-10k Tq.8.8k Up.wt = 142k Dn.wt.~ 68k Rt.wt.= 98k Art=4.3 Pump hivis sweep at 10400' Printed: 11/26(20D7 2:02:42 PM . ~ Marathon ~il ~ompany ` Page ~ ~ ot ~~' Operations Summary Repart Legal Well Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK 5TATE 3 Spud Date: 2/23/2Q07 Event Name: ~RIGINAL. DRILLlNG Start: 2/10/2007 End: Cantractor Name; GLACIER DRILLING Rig Release: Group: Rig Name; GLACIER DRILLING Rig Number: 1 Da#e From - To Hours Code Cotle Phase Description of ~perations 3l19/2007 06:00 - 12:00 6.U0 DRILL ROT_ PRIDRL Sweep returned W 50 % increase in cuttings. BOP drill 72 sec for all to respond at stations. 12:00 - 18:00 6.00 DRILL_ ROT_ PR1DRL Directionally drill ahead#-10420' -10623' 300gpm 2450/2750 wob = 5-7k Tq.=8.7-9.5k llp. wt.= 145 Dn. wt.= 70 Rt. wt. = 98k Art= 5.2hr. 18:00 - 23:15 5.25 QRILL_ ROT PRIDRL Directionally drill ahead f/ 10623' to 10$88'. 300gpm 2450psi off btm 2825psi on btm. Trq off btm 7.5k on btm 9.8k 70-80 rpms WOB= 45k ART= 4.2hrs 23:15 - 00;15 1.00 CIRC_ MUD PR1 DRL Circulate boftoms-up. 00:15 - p2!20 2.08 ?RIP_ DP_ PR1 DRL Observe weU. Pull 5 s#ds. Upwt= 150k dwn wt= 75k Pump KCL dry pill. Short wiper trip to 9034'. No averputis. Checked DP screen no metal found. 02:20 - 02:40 0.33 SERVIC RIG_ PR1 DRL Service rig. 02:40 - 03:50 1.17 TRIP~ DP_ PR1 DRL TIH. Placed 95' pup and DP screen between std #158. 03:50 - O6:Q0 2.17 DRILL ROT PR1 DRL Gontinue to direetionally drill ahead f! 10888' to 10980' 30Qgpm 245Qpsi aff botm 2&OOpsi on bfm WOB= 4-5k Trq= 9k 7D rpm's Up wt= 165k dnw wt= 70k rot wt=108k ART= 1.3hrs Max gas after TIH was 880 units 3/20/2007 06:00 - 12:Q0 6.00 DRILL_ ROT_ PR1DRL ConUnue to directionally drill ahead f/ 10980' to 11135' 300gpm 215d/2450 wob 6-'IOk Tq 9i5k Up. v/t=?65k Dn wt. 75k Rt. wt = 114 Art=5.6hr 12:00 - 18:Q0 6.40 DRILL ROT PR1 DRL Drill ahead f- 11135' -11380' 300gpm 2200/25~U W08= 5-7k Trq &10k 70.80rpm`s Up wt= 170k dwn wt= 75k rot wk= 115k ART= 5.2 18:OU - 00:00 6.00 DRILL ROT PR1DRL Doll ahead f/ 11380' to 11572'. 304gpm 2450 / 275Q WOB= 6-7k Trq 9-10 (addi~g 8 drums lubtex) Up wt= 17'5k dwn wt= 75k rot wt= 114k mw= 9.5ppg have 320 screens on both shakers. SWACO SCU off Isst 12 hrs. ART 5.4 hrs 00:00 -06:00 6.00 DRILL ROT PR1DaL Drill ahead f/ 11572' to 11695' 3D0 gpm 2550 / 2750 W06= 7k Trq= &9k Upt wt (add'[ng 1 ppg Asphasol) Up +vt= 175k dwnwt= 82k xot wt= 118k ART= 5.3 3/21/2007 06:00 - 11:40 5.67 DRILL ROT_ PR1 DRL Continue driUing ahead f/ 11695' - 11843' Up wt = 165k Dn. wt =75k Rt.wt=994k Tq = 9-10k 300gpm 2450/2650 Art= 4.9hrs 11:40 - 12:40 1.00 GIRC MUD PR1 DRL Circ BN at 11843' for samples fvr MOC Geo. dept. to conflrrn TlD. Orders to drill ahead F-11843 12:A0 - 17;00 4.33 DRILL ROT PR1 DRL Qrill ahead f-11843-11962'. Up wt= 185k Dwn wt= 75k rt wt= 115k Trq= 9-10k 300gpm 2375/2600 ART= 4.1 hrs Note: Lost 30bbts at 17940'. P/U shut pumps down. well At reduced rate 27pgpm. Flu[d loss 30bbis. ta 1 i962`. Cire B/U ck for gas influx. B1U gas 30units. P/U ta 11876' Shut pumps down. had 10bb1 flow back. after 10bbls flow stopped. Totai fluid loss i50 bbls with 16bbis retumed.( Weli breathing.) 17:00 - 18;45 1.75 CIRC_ MUD PR1 RRL CBU 1:1 retums no gas. 18:45 - 20;00 1.25 TRIP_ DP PR1 DRL Short trip back to 10733'. L~ 3-4/2" pup jt with DP screen. Hole was Printed: 11/26~2007 2:d2_42 PM ~ i Marathon Oil Company pa9e ~~ o~ 7 ~ C?pera#ions Summary Report Legal Well Name; NiNILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date: ~/23/20Q7 Event Name: ORIGINAL DRILLING Start: 2/10/2007 End`. Cantractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILI.,ING Rig Number: 1 Date From - To Hours Cotle Code phase Description of Operations ' 3/21/2007 18:45 - 20:00 1.25 TRIR DP PR1 DRL breathing slightly trip sheet showed'3 bbY gain,. 20:00 - 21:15 1.25 TRIP_ DP_ PR1 QRL RlH to 11920' to stay above most of loss zones. 21:15 - 00;00 2.75 CIRC;_ MUD_ PR1 DRL Break eirculation slowly, Ramp up pump to 180gpm. Retums 1:i then CBU no increase aver narmal bgg of 20-30un-ts M1x 25 bbl 10.5ppg LCM pill w/75ppb of calcium carbonate. Pump pill followed by 120 bbls mud spot#ing pill mostfy around BHA. OO:OQ - 0o:15 0.25 SAFETY MTG PR1 DRL Crew changeout. Review past ops, p#an forvvard and safety issues. 00:15 - 00:30 0.25 TRtP_ DP_ PR1 DRL UD 1 single. Pull 5 stds. Monitorwell. Small flow back which coutd be from heavy pi[I on backside. Drop 2.30" rabbit 00:30 - 04:45 4.25 TRIP_ DP_ PR1 DRL Pump 25 bbl 10.7ppg KCL dry job pi11. TOH to 6813` ( hole fill correct with Trip Sheet) 04:45 - 06:00 1.25 SERVIC RIG PR1DR~ Gut and slip drilling line. Service rig. 3l22/2007 06:00 - 06;30 0.50 SERVIC RIG_ PRIDRL Gontinue cut and slip drilling line. Service rig. 06:30 - 11:30 5.00 TRIP,_ DP_ PRIDRL TOH fi/ 6824' Hole stable no fluid loss/ gain. S1.M no correction. 11:30 - 13;30 2.06 PULD BHA PR7 DRL PJSM/JHA UD BHA. Functioned biind rams. 13:30 -14:30 1.00 PULD_, BHA_ PR1EVL PJSM/JHA. P/U 5huttle BHA. 14:30 -15:30 1.00 PULD LOG_ PR1 EVL P/U WeatherFord shuttle logging tools. 15:30 - 23:30 8.00 TRIP_ bP_ PR1EVL Cont. RIH W/DP stop and test tools at 390,2548, 4502, 7205, 9479, RIH to 11737' slowly without tagging; PUH fa 14700' 23:30 - 02:00 2.50 CIRC MUD PR1 EVL Circulate at 150gpm 1150psi. Initially had partial retums, lost 20 bbls then regafned 10bbls. Trip gas 475 units after 9700stks. Retum mud 9.6+ running through solids unit to 8.6 9.5+ th~n sfiutdown. Also seeing a lot of coal across shakers and gas cut mud'. Ftunning through vacuum de-gasser. Good mud with less coal after 2x bcaftoms-up and retums are very close to 1:1 Upwt= 170k dwn wt= 85k rot uv# = 130k 02:00 - 02:34 0.50 TRIP DP PR1EVL Pull 2 stds then load shuttle log launching dart. 02:30 - 03:50 1.33 CIRC_ MUD_ PR1 EVL Spaceout to put Iogging tools on depth aft~r ioading dar~. Pump tlown dart and hit on time 3850stks with 1030psi. Inc to 1300psi artd sheared upper latch pins pressure dropped to 650psi launching logging tools to be on depth at 11701'. Estiablish new SPR's. Pt~mp 25bbls 10.7ppg KCl dry job. 43:54 - 06i00 2.17 LOG OH_ PR1EVL TOH logging with Weatherford Quad-C4mbo at 2min/std starting from 11701' 3/23J2p07 p6:00 - 08:3~ 2.5p LOG^ OH PRIEVL Gontinue POOH logging with Weathe~Ford Quad-Combo shuttle service F/91,701' to 6401'. D8:30 -10:30 2.00 LOG~, OH PR1 EVL POOH w/logging tools on 4" DP F/6401' fo 2500'. 10.30 - 11`00 0.50 REPAIR RIG PR1EVL Repair cement safety cable clamp. 11:00 - 12:00 1.Oq LOG ~ OH_ PR1EVL Cont. POdH wlloggittg tools on 4° DP F/2500' to 2170'. 12:00 - 13:30 1.5Q LOG OH PR1EVL PJSM. Cont. PdOH w/logging tools on 4" dP 2170'to 782'. 13:30 - 15:00 1.50 PULD_ BHA_ PR1 EVL PJSM/JHA UD 3.5" BHA and WetherFord logging tools. Begin complefion operations @ 15:00 hrs 3122/2d07. Printed: 11/26/2007 2;02:42 PM ~ ~ Marathon Uil Company Pa~e 1 af 7 Operations Summary Report Legal Wekl Name; NINILCHIK STATE 3 Common Weil Name: NINfLCHIK STATE 3 Spud Date: 2/23/2007 Event f~ame: ~RIGINAL COMPLETION Start: 3f20/2007 End: Contractor Name: GLACfER DRILLING Rig Release: Group: Rig Name: GLfiCIER DRILLWG Rig Number; 1 Date From - To Hours Code C~de Phase Description of Op~rations' 3/23/2007 15:00 - 15s30 0.50 RUNPU WBSH PR1 C5G Pull wear busfiing. 15:30 -'{ 7:fl0 1.50 TEST BOPE PR1 CSG Run test plug and test 2 7!8" X 5 1!2" variable rams, HCR, Inside kill, and TIW valve to 250130Qqpsi 5min, Full BOPE test waved by AQGGC` Jim Reg. 17:00 - 18:30 1.50 PULD BHA_ PR1 CSG PJSM/JHA. P/U cleanout'BNA 18:30 - 01;00 6.50 TRIP DP_ PR1CSG TIH w/ DP stop break circufation @ 3838', 7164' (3bpm/560psi 5/80D; &/4010 no losses) continue TIN to 9564` break circulation. 01:00 - 01;20 0.33 C1RC_ MUD PR1CSG Circulate from 9560' ( 3bpm 870psi, 4/860, 5/1010, 6M330 no lvsses) circ enough to clear hole annulus into casing. 01:20 - 02:30 1.17 TRIP_ DP_ PR1CSG TIH to 9675. Tagged then needed to wash down stand. Same for next 2 stds. Tryed ne~ttwo W/R arrd momentarily stuck at 9936'. Decided it was a risk nof to wash/ream fo bottom. 02:30 - 05:30 3.00 TRIP_ DP_ PR1CSG Wash and ream to bottom. 65 rpm's 130gpm. Firsf stall at 11130' work through and dean up. Attempt to ream down and stuck @ 11155'. 05:30 - 06:00 0.50 WORK PIPE' PR1 CSG Work stuck pipe @ 11155'. 13/24/2007 Tried jarring up. Jars rozed Qut @ 85K. Circulation is OK. There may be coal at 11,150`. The caliper Iog shows that the hole could be ~" instead` of 7" at some depths. 06:00-07:30 1.50 WORK PIPE PRICSG Workstuckpipe 11,115`. 07:30 - 08:00 0.5Q WORK PIPE PRICSG Pump 30bb1 sweep mud w/3 drums lubtex. Work stuck pipe. OS:00 - 10:30 2.50 WORK PIPE PR1 CSG PJSM. Work stuck pipe (jaring up with 90K over) and increase circ rate to 230gpm wl1294 psi. Circ. BtU. Noticable increase in cuttings a~ross shakers(larger chunks of coal}. 10:30 -11:30 1.00 WORK PIPE PR1CSG Pump 30bb1 hi-vis sweep(2ppb flo vis). Pipe came free.iaring up with 94K over strin weight. 11:30 - 12:30 9.00 GIRG_ MUD_ PR1CSG Circ, clean 230gpm. 12:30 - i8:Q0 5.50 TRtP_ DP„_ PR1GSG Wash and ream F/19,115' to 11,700'(230gpm 1290psi}. 18:00 - 19:3Q 1.50 TRIP DP PR1CSG Continue WIR f/ 11700' to 11724'. 19:30 - 22:45 3.25 CIRC_ MUD PR9C5G Pump 30 bbl hi-uis sweep with nutpiug. Seen nutplug across shakers 22:45 - OU:00 ~ 1 00:0~ - 00:10 00:10 - 03:00 d3:00 - 05;00 05:00 - 05':30 05:30 - ~6;00 3/25l2007 Ofi:00 - 08:00 08:00 - 10:30 10:30 - 11:00 11:00 - 12:00 12:00 -12:30 12:30 - 14:00 14:00 - 15:00 starting at 11100 stks, ( gauge hole= +!- 1440Ustks ) GBU small amt sand/silt across shakers. Trickle in a 30 bbl Asphasol pill and spot in annulus. TRIP_ DP_ PRICSG Pull 11 stds back to 11070. String wt 200-190k. Pump 10.7ppg KCL dry job. 0.'17 ~ SAFETY DRIL PR1 CSG Crew change. PJSM JSA review plan forwa~d. 2.83 TRIP_ ~P_ PR1CSG Drop 2;30" drift in std #161 and continue to TOH to 6897'. No problems. Trip sheet correct. 2,00 SERVIG EQIP PRICSG PJSM/JSA Cut and slip 733' of drilling line, Found broken braid at 237' and 706'. 0.50 SERVIC RIG_ PR1CSG Service rig. ~.50 TRIP DP PR1CSG Continue TOH 2,00 TRIP DP PRICSG Continue POOH Rack back 4" DP. 2.50 TRIP DP PR1CSG UD 4" hWDP and 4 3/4" Jars, coliars, stabs and bit. 0.50 CLEAN RIG_ PR1CSG Clean and organize rig floor. 1.00 RURD` CSG PRICSG G!O to long bales. 0.50 RURD CSG_ PR1CSG PJSM. Secure tongs and spinners for running GSG. R/U fill up line. MIU T~W valve and X/Q for liner. Function valve and leave in open position on rig floor. 1.50 RURD CSG_ PR1C5G PJSM. R/U Weatherford CSG tongs, elevaiors and slips. 5tage centralizers and stop collars on rig floor. 1.00 RUN CSG_ PR1CSG P!U shoe track and Bakerlok. Circ. through shoe track and check that floats hold. Printed: 1'1l26/2007 2:04:09 PM ~ • Marathon Oil Gompany Page 2 a~ 7` Operations Summary Repvrt Legal 1fVe11 Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 5pud Date: 2/23/2007 Event Name: ORIGINAL COMPLETION Start; 3/20/2007 End: Contractor Name: GLRClER DR1L~.ING Rig Release: Group: Rig Name: GLACIER DRILUNG Rig Number. 1 Date From - To Hours Code Code Phase ' Description of Operations 3/25/2007 15:40 - 21:30 6.50 RUN CSG PR1CSG Run 111'ts 4.5" 12.6 f L-80 H dril lin r: 21:30 - 22:45 1.25 RURD 8SG PRICSG R/U DP eleva#ors and bales. 22:45 - Od:00 1.25 RUN_ CSG_ PR1CSG PU Baker (iner hanger MU Howco wiper plugs. MU hanger to liner. Mix and fill PBR with PAL. RD WeatherFord tools RU to run DP. 00:00 - 00:10 0.17 SAFETY DRIL PR1CSG PJSMNSA with new crews. 00:10 - 00:30 0.33 TRIP_ DP_ PR1CSG Circulate 1 csg volume at 4bpm 445psi. PU 1std est paratmeters wo/pump upwt= 50k dwn wt= 37k rot wt 40k wJpump upwt 46k dwnwt= 34k rotwt= 40k 00:30 - 02;15 1.7& TRIP~ DP_ PR1CSG TIH w/DP to 7" csg shoe. 02:15 - 02:45 0.50 PULD_ EQIP PR1GSG PU Baker cementing head and MU to 10' pup and XO. LD same_ 02:45 - 03s30 0.75 GiRGJ MU~_ PRICSG CBU. Pump on 3bpm/575psi pu= 66k so= 42k rot= 53 rot up= 53k dwn= 47k trq= 3.Jk Pump off up= 75 dwn= 4$ rot= 60 up=67 dwn 54=~PR= ~ 60/350psi 03:30 - 04:40 1.17 TRfP_ DP_ PR7C5G TIH small bump at 7865'. Ledge at $289`. MU TD wash through 1st pass. Continue TIH to 8720' 04:40 - 05:45 1.08 GIRC MUD PR1GSG CBU Pump on 4bpm/635psi pu= 91k so= 47k rot= 68 rot up= 8U dwn= 52 trq= 5.4k SPR= 60/420psi While CBU rotating and reciprocate' 15' 05;45 - 06:00 0.25 TRIP DP PRICSG Continue TIH with liner. 3/26/2007 06:00 - 07:00 1 AO RUN_ CSG_ PR1CSG Gont. RIH w/4 1!2" liner on 4" DP to 10,400', (Rotate and wash past ledge @' 9583). 07t00 - 08:30 1.50 RUN_ CSG_ PR?GSG CBU @ 10,200'(4BPM, ~50psi some small pieces ofcoal across shakers). 08:30 - 09:30 1.00 RUN_ CSG_ PR1CSG Cont. RIH w/4 1/2" liner. Tag ledge@11,2~9'. ', 09:30 - 11:D0 1,50 RUN CSG_ PR1CSG Circ. and rotate and attempt to work past bridge @ 11,279'(Circ. ~ complete-BN while working through absYruction, occasionally seeing an iocrease in pressure}. Finally passed by with 45K down weight rotating and' pumping. 11:00 -12:00 1.00 RUN GSG_ PRICSG PJSM with crew coming on while CBU @ 11,300'(rotate and reciprocate 20RPM, 164GPM, BdOpsi). 12:00 - 16:30 4.5d RUN GSG~ PRICSG Wash antl rotate liner down FI11,30U' to 11,648'(using max 45K downweight 164GPM, 8QOpsi,20RPM). 7agged at 11,648'. Picked up and lost hole to 11,640'. It apnears'that Baker liner hanger has set. will ull the liner since #he cement job would have been poor. 16:30 - 17:30 1.00 RUN_ CSG_ PRICSG Circ. rotate and attempt to work : dawn. an puU up 6ut can not go down. Trou6le IEsted as'mechanicaf completion equipmenY but hole conditions can be aftributed leading up to the actual p~oblem. Changed trouble coding to Hole Inst~bility hecauseseveral factors effecting hole condiions appear to have caused H~e liner problem: caliper log shows inconsistent hote diameter, tripping speeds were higher fhan recommended, lnstability of coal layers, it is uncertain if asphasol was added prior to th~ coal problems starting. 17:30 -18:00 U.50 TRIP DP PR1CSG POOH to 11,507' and attempt to wo~k pipe down. Can no~ go down. 18:Q0 - OOt00 6.00 TRIP~ DP_ PR1CSG Bring pumps up to 5bpm gd0-1140psi. Work pipe free. Con#inue TOH IimiGng pull to '175k <0.3'lsec whfle pumpi~g 5 bpm..seems to work. A few tight places but able to work free without much problem. 70H'to 9475'. (called AOGCC @ 21'I'5hrs and left message of a pending BOP fest in AM) Prinled: 11/26/2007 2i04:09 PM ~ ~ Marathon Oil Company Pa~e 3 0~ 7 Operations Summary Report Legal Well Name: NINILCHIK STATE 3 Common Well Name: NINILCWIK STATE 3 Spud Date: 2/23/2a07 Even# Name: ORIGINAL C~MP~ETION Start: 3/20/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date From - To Hours Code C d ` Phase : Description `of Opera~ic~ns e 3/26/2007 00:00 - 03;00 3.00 TRIP_ QP_ PR1CSG PJSM/JSA. Gontinue to TOH f/ 9475' pulling wo pump to 7" csg shoe. 03:0~ - 03.30 0.50 G1RC_ MUD_ PR1CSG CBU 5bpm Siits with smal( amount of coal. Na mud losse5. 03:30 - Q6s00 2.50 TRIP DP PR1CSG Gontinue TOH to Baker liner hanger. 3/27/2007 06:00 - OS:00 2.D0 LAYDW GSG_ PR1 CSG RU to LD Baker liner hanger(some scars an hydraulic housing} 08:00 - 09:00 1.00 LAYDW GSG PR1 CSG PJSM. POOH UD 4 1/2" CSG. 09:00 - 09:30 0.50 REPAIR RIG_ PR1CSG Red tugger blew case pop off and seal. OS:30 - 17:00 7.50 LAYDW GSG_ PR1 CSG Gont. tv UD CSG {lost in hole 43 1/2 centralizets and 40 stop collars, severe damage to some of the recovered centralizers and stop rings. Some scamng of C5G and couplings). 17:00 - 18t00 1.00 LAYDW CSG_ PR1CSG PJSM. Heat up shoe track and brake Baker locked coupiings UD shoe track (battom of float shoe was broken out). 18:00 - 20i00 2.00 RURD CSG_ PR1 GSG RD WeatherFord equipment. Changeout bales and RU DP elevatnrs. Same time remove 'red' tugger winch hyd motor. 20:00 - 23;30 3.50 WAITdN EQIP PR1CSG Drain BOP stack; Observe cenfdlizers nn top of wear bushing. Wait on magnets. Continue cleaning up rig floor. RU anather tugger. PJSM discuss plan farward and handling of magnets. 23:30 - Q0:00 0.50 ENGAG' FISH PR1CSG MU 8" magnet wo cut-lip guide. 00:00 - 00:10 0.17 SAFETY DRIL PR1CSG PJSM with new crews. Review plan forward and handling magnets safely. 00:10 - 02;30 2.33 ENGAG FISH PR1CSG Fish aut 14 halfi 1 whole centrilizers and 2 stop rings that were laying on to of wear bushin . Funtion all rams, annular, washing at same time. No further recoveries. MU 5-4/2" magnet wo cut-lip guide and RIH to 35'. No recovery no setdowns. LD magnet. 02:30 - 03;00 0.50 TEST BOPE PR1 CSG Pull wear bushing. Sst test plug. Open lower annulus valve. 03:00 - 06:00 3.00 TEST_ BOPE PR1 CSG Test lower 4" pipe rams 2~Opsi/3000psi 5min ea. Good test. Gontinue testing annular, upper V612 rams, inside/outside & HCR stack valves; choke manifold valves, floorvalves,topdrivevalves to 250psi tow/3000psi high 5min ea. AQGCC waivetl witnessing test. 3i28/2007 OB:00 - 07:30 1.50 TEST_ BOPE PR1 GSG Test BoPE. Upper kelly vatve failed tow test 07:3Q - 08c00 0.50 TEST BOPE PR1 GSG R/D test plug and set wear bvshing. b8:00 -11:30 3.50 REPAIR RIG PR1 CSG PJSM/JHA C/O Tap drive valve assy. 11.30 = 12`.00 0.5Q TEST_ BOPE PR1CSG Test upper and lower Top Drive valves'250/300psi 5min. 12:00 - 12;30 0.50 SAFETY MTG PR1CSG PJSM/JHA. Blow down lines. 12:30 - 15:30 3.00 PULD BHA PRICSG P/U BHA. f5:30 - 21:15 5.75 TRIP DP PR1CSG RiH wJ4" bP to the 7" csg shoe. 21:15 - 00:15 3.00 CfRC MUD_ PRICSG Wash and ream from shoe each stand twice then once wo/pump or rotation to 7834 std #116. 230gpm/904-1100psi. 60 rpm's Trq off bottom 4k would see trq inerease 3-4k in places but never for very long and always able to ream or wash through without problem. 00:15 - 01 s"45 1.50 TRIP~ WIPR PR1 CSG Wiper trip back to shoe fhen 6ack to 7730'. No major problems minor overpulis and slack-off of wt.. p1:45 - 05:30 3.75 GIRC MUD_ PR1GSG Gon6nue wash and ream from 7730' to 8435'. Same parameters. Gonditions improving as Ehe hole angle decreases. No major mill operations, no indication that we were di~netfy milling a centrilizer. No overpulls. Torque increases af 2-4k but 8lways able to work through them or PU and ream back ihrough them. 05:3D - 06;00 0.50 TRIP_ WIPR PR1 CSG Wiper trip back to the 7" shoe. 3/29/2007 U6:OQ - 06330 D.50 TRIP DP PR1 GSG Wiper trip to G5G shoe(hole in good condition). 06:30 - 07;30 1.00 TRIP DP PR1 GSG RIH to 8435'(wash last stand dqwn, hole in good ccmditian}. p7,30 - 16;30 9.00 TRIP_ DP_ PR1 CSG Cont. to wash and ream each stand until it will wash up and down easily and pull and run easify wEth na pump or ratation{washing w/6DRPM, 230GPM, 1100psi)to 9Q63`. Some stand taking as fong as 50min to Pr~ntea; ~irz6rzoox 2:oa:osrM . • Marathan ~il Gompany Pa9e ~ of 7' ' t~perations Summary Fiepor~ Legal Well Name: NlNILCHIK S7ATE 3 Common VVell Name: NINILCHIK STATE 3 Spud Date: 2/23/2007 Event Name: ORIGINAL COMPLETION Start: 3/20/2007 End: Cantr~ctor Name: GLACIER DRILLING Rig Release: Group' Rig Name: GLACIER DRI~LING Rig Number: 1 Date From - To Hours Code eo~e Rhase Description of Operations 3/29(2007 07>30 - 16:30 9.00 TRIP_ DP PR7 CSG work free. Appear to be pushing broken central~zers ahead 16:30 - 17:30 1.00 TRIP DP PR1CSG CBU @ 9063'(60RPM, 230gpm, 1100psi}, 17:30 - 19:00 1.50 TRIP_ WIPR PR1CSG Wiper trip to 7" shoe(hole in good condition). 19:Q0 - 20:00 1.00 SERVIC RIG_ PRICSG Service rig. Remove #2 Dennision Drive(ine for Repalr 20:d0 - 21:b0" 1.00 TRIP_ WIPR PR1CSG Wiper Trip from Shoe at 7228' to 9Q63' Ho1e slick No Gains No Losses 21:00 - 05:00 8,00 CLNOU GH_ PR1CSG Cont. to wash and ream from 9083' , e~ch stand until welbore is clear and will slide freely. 63 RPM, 230 GPM ,1D80 psi Stop and circ. for Wiper trip at 103$7'. Up. Wt.=145K Dn. Wt =~5K Rot. Wt.=105K Tq.=6-7 K. 05:00 - 05:30 0.50 CIRC MUD_ PR1 GSG Circ. BN For wipet trip 05:30 - 66;00 0.50 TRIP_ WIPR PR1CSG Wiper frip F/ 10387. 3/30f2007 06:00 - 06;3U 0.50 CIRC_ MUD PRICSG Circ. B/U 23Ugpm 1130psi 60RPM, PJSM/JHA. Flow'check. 06:30 - 08`3D 2.00 TRIP DP,_ PR1 CSG POOH ta 8819'. Tight G7a 95$4', 83Qq'(25-30K overpulf): 08:30 -'10:00 1.50 TRIP_ Dp_ PR1CSG R1H(tight @ 9300'; 9378', 9584', W/R through 9584'(high torque), 10,105', 10300'. Wash faststantl tlawn. 10:00 - 18;30 8.50 TRIP_ DP PR1 GSG W!R F/1p,387' to 11,401'(90' high torque and getting trapped beiween tight spots). Up wt.=170K Dn. Wt.=85K Rt. Wt.=120K Tq.=8-9K 18:30 - 20:00 1.50 CIRC MUb_ PRICSG Cira Bottoms Up - Monitot Well-PJSM-~'OOH F/Mill 2U:00 - OO:QO 4.00 TRIP_ DP_ PRICSG POOH- from 11401' to 7" Shoe at 7228'.7ight sppts at 11,4Q0'to 11,405' , 11,383'to 11,380' , 11,'ID4'to 11,09$' 11,012' to 11,0'10' , 9,854' to 9,851' 00:00 - 01:00 1.Q0 SERVIC RIG_ PR1CSG Serv. Ftig slip Dri[ling line 01:00- 06;00 5.Od TRtP_ BHA PR1GSG POOH with D.P. and HWDP- D.C.'s-Laydown Junk Mill -1/16" out af Geuge 55% Superloy wore down. Mildly Junk Cut ,Pick-up 6 4l8°Junk Mill and String mill 3/31l2007 06:00 - 11:00 5.00 REPAIR RiG_ PR1C5G GO bent gooseneck on top drive. Note: Near miss occuRed when top d~ive goose neck interfered with spinner line as top drive was lowered to RIH w/BHA. A Karibeaner that is used to hold the spinner line out of the way was pulled agianst and was broken. The Karibeaner fell 55' to the rig floor but did nat hit anyone. There will be a near miss investigetion while C/O gooseneck. 11:00 - 12:00 1.00 TRIP BHA_ PR~CSG PJSM/JSA. Cont. to PIU mill assy BHA. 12:00 - 15i00 3.00 TRIP DP PRIGSG PJSMlJSA with crew coming on. RIH w/4" DP. 15:00 -15:30 0.50 GIRC MUD PR1CSG Fill Drill pipe at 32Q0' PJSM; RIH 15:30 = 17:00 1.50 TRIP DP_ PR1CSG RIH fo Csg. at 7200' 17:00 - 18;30 1.50 SERVIC RIG_ PR1 CSG Fill pipe at 7200' , Fifl gear box on Top Drive , Replace drivetine on #2 Carrier dennison pump , Repair light across demck board 18:30 - 19:30 7.00 TRIP_ DP PR1G5G RIH to 9395` taking wt. 19:30 - 04;d0 8.50 TRIP_ DP_ PR1CSG Ffl! Drill pipe , WiR tight hole at 9395' , 11072' , 11291' 11405', 11,~424', 11433', 11450`, 1i465' Stoppetl at 11735' high fq. and was sticking. 04:00 - 05:OD 1.4U CIRG MUD_ PR9 CSG Circ. B/U PJSM;,~SA 05:00 - D6:00 1.00 TRIP_ WIPR PR1C5G PO~H F/ 11735`to 11250' Tight at 11700' , 11655 Up Wt.=180K Dn. Wt.=90K Rt Wt.=150K Tq.=6-10K 06:00- 10:00 4.00 TRIP_ DP_ PR1GSG POOH to CSG shoe @ 7228'. Tight F/11,735' to 11,405, tight @ 11,232(OK after worked 2X), 11,077', 14,474(OK after worked 2X), 9700, 9409(OK after work 2X). 10:00 -10:30 0.50 SERVEC RfG_ PRICSG PJSM/JSA. Service the rig. rnnieo: ~uzo~euu~ z:ua:oarm ~ • Marafihon Qil Company Pa~e ~ af.7 Operations Summary Report Legal Well Name: NINII.CHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date: 2/23f2007 Event Name: ORIGINAL COMPLETION Start: 3/20/2p07 End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRtLLlNG Rig Number: 1 Date From - To I Hours I Code I Code Phas~ Description of aperations 10:30 - 11:06 0.50 REPAIR RIG_ PR1 CSG G/O Qennison drlve shaft #1 caRier engine. Adjust Drawworks brake. 11:00 - 17:00 6.00 TRIP_ DP_ PR1CSG PJSM/JHA. RIH. Tagged @ 9425'. Worked one time to pass. Tagged Q 9485 worked one time to pass. W/R Q 10470'. W/R F/11,515' to 11,735'. 17:00 - 21:00 4A0 CIRC_ MUD_ PR1 GSG Girc. Clean(230gpm, 1300psi, 64RPM): Pump 30bb1 Hi-vis sweep 2ppb flovis. Good increase in cuttings across shakers, large quantity of coal on shakers. Sweep came back 56bbls ~ate, Spot$5bbls 14"/0 lubtex 9.~PP9 Pill. 21:00 - 01;30 4.50 TRIP_ DP_ PR1 CSG Stow Pump rate, Monitor well,PJSM;POOH to run 41121iner Up Wt.=200K Dn. Wt: 85K Rt,Wt.=125K Tq.=7-10K Tight Spots at,11735'-917Q2' , 11700'-11650' , 11513'-1145t}' , 11441' , 10480`-10460' , 7776' , 7735' 01:30 - 02:00 0.50 SAFETY MTG_ PR1 CSG PJSM: And JSA Meeting before changing out Hyd. pump 02:D0 - 03;6Q 1.00 REPAIR RIG_ PRICSG Stop at T' CSG Shoe Change Electric Hyd. pump. 03:00 - 06:00 3.00 TRIP DP ^ PR1 CSG Continue POOH F/ Shoe. 06:Q0 - 06:30 0.50 TRIP DP PR1CSG Cont. POOH wi4" DP. o6:30 - D8:30 2.00 PULD BHA_ PR4CSG PJSM. UD BHA. Some wear on face of concave mill w/slightjunk wear. Very little wear on string mill with no noticable wear from Junk. 08:30 - 10:30 2.00 RURD CSG_ PR1CSG PJSM/JSA. C/O to long bales. R/U to run lirtei. 10:30 - 12:00 1.50 RUN_ CSG_ PRICSG PJSM/JSA P/U shoe track and Bakerlok~ M/U swedge and circ. through shoe track. Check floats. 12:00 -1$:d0 6.00 RUN CSG PR1 CSG Run 4 1Y2" 12.6 f L-80 H d5 3 li 18:00 -18:30 0.50 SAFETY MTG_ I'R1CSG PJSM; and JSA for rigging down csg. tools and rigging up fordrill pipe 1$:30 -1$:30 1.00 RUN CSG_ PR1CSG Change bails ,rig down csg. equip and rig up to run drill pipe. 19:30 - 20:00 0.50 RUN_ CSG_ PR1CSG Pick up csg hanger make up and install Pal Mix in running tool. Clean rig floor Up Wt.-50K Qn. Wt =35K Liner wt. -38K 20:00 - 21:00 1.Q0 RUN_ CSG_ PR1CSG PJSM; RIM w+th one stand drill pipe,get perimeters 21:00 - 23s30 2.50 RUN CSG_ PR1 CSG Run in hale W/ ddfl pipe 811ing every five stds. to 7" shoe at 7200' 23:30 - Q0:00 0.50 RUN CSG_ PR1CSG Circ. bottoms up ,esf. perimeters @7200' Up Wt.=67K Dn. Wt.=40K Rt.Wt.=48K 4 Bbis. Min.=652 psi 00:00 - 01:00 1.00 RUN GSG_ PR1CSG PJSM; RIH with 4 112" Liner to 8700' 01:00 - o2:00 1.00 RUN_ GSG_ PR1 CSG Break Cira Circ. B/U l7p Wt.=67K Dn Wt.=4DK Rt Wt.=53K 4 Bbls. min.=652 psi 02:OQ - 03:00 1.00 RUN CSG PR1 CSG RIH to 1Q220' 03:00 - 04i00 1.00 RUN GSG_ PR1CSG Break circ. Gira BN Up Wt.=120K Dn. Wt.=60K Rt.Wt=75K 3J Bbls min.=700psi ~q ~ 04:00 - Q430 0.5Q RUN,_ CSG_ PR1 CSG r(~ = l\~~ p~ G'u [~ RIH to 11270' ~ C1~, 04:~0 - 06;00 1.50 RUN_ GSG_ PRICSG Liner Sto ed at 11270' Try to work down not able to break • through by Rt. or circ.Up Wt.=130K Dn. wt.=70K RT wt: 107K 06;00 - 09:30 3.50 CIRC MUD PRICSG Circ. liner(160gpm, 650psi, reciprocate 15' and rotate 20RPM7:. Condition mud for cementing yp=16, pv=8; wt=9.6ppg. 09:30 - 10:30 '1.00 RURD OTHR PR1 CSG PJSM for cement job. R/U Baker cement head. 10:30 - 11:30 1.00 CiRC MUD PR1CSG Gont. to circ. liner, reclprocate and rotate. Batch up stage#1 cement slurry. 11:30 - 14:00 2.50 PUMP_ GMT_ PR1 CSG Pump 5bb15 waier ahead. Test eement lines #0 4500psi. Mix and pump 20bbls 10ppg spaGer. Pump 106bb1s 10.5ppg batched mixed Giass"G" Ceme~t wl22°IaLW'-6. 15°laBA-90. 1.5%FL-52. 1%CD-32, .5%SMS, .05%Static Free, and lgphs FP-6L: Wash uplines to 51op tank, Drop DP wiper plug and dispiace W/39bbls viscosified brine and 1QObbis 9.6ppg mud. Plug did not bump. ~bserved a 200psi increase in pressure at 139bb1s displaced. Pumped 3.5bbls over'displacement. Printed: 11l2&/2407 2'.04:09 FM i ~ Marathon Oil C~mpany Pa~e s~f 7 Operations Summary Report Legal Well Name; NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud ~ate: 2/23/2007 Event Name: ORIGINAL COMPLETION Start: 3/20/2007 End: Contractor Name; GLACIER DRILLING Rig Refease: Group: Rig Name: GLACIER DRILLING Rig Numbec; 1 Date Fr'om - To Hours Code C~~ Phase Descriptian of Dperations 4/3/2C107 11:30 - 14:00 2.50 PUMP_ GMT_ PR1CSG Check floats held. Reciprocate 15' and rotate 20RPM theough entire job. Fup retums during entire job. Avg. pump rate QBPM. 14:00 - 14:30 0.50 SETREL TOdL PR1CSG Emergency left hand eefease from liner. Liner shoe set @ 11,270`. 14:30 - 15s00 0.50 RURD OTHR PRICSG R/D cemank line. L/~ Cement head 15:00 - 15;30 0.50 CIRC_ MUD_ PR1GSG Circ. B/U(no cemenf to surface). 15:30 - 2Q:3~ 5.00 TRIP_ DP~ PR1 CSG PJSM; Monitor well . POOH w/liner runninq toof. 20:30 - 22:00 1.50 PULD_ BHA PR1 C5G PJSM;UD Liner Running Todl ,Liner Winer Plua still attache8 to runnina tooi when POOH P!U Gmt Hd. and Tong service breaks and LlD. Did not find driil pipe dart.Some metal debris, came out on liner wiper plug ; 22:00 - 23:00 1.U0 PULD BHA PR1CSG PJSM; Make up bit sub and mill to run in hole. 23:0~ - 00:00 i.00 TRIP DP` PR1CSG PJSM;Trip in hole wlth drilf pipe (31 stands) 00:00 - Q2;00 2.00 TRIP_ DP_ PR1CSG PJSM;Drop rabbitdown drill pipe to try to locate drill pipe dart.POOH(31 stands) Lay down drili pipe 02:00 - OZ:30 0.50 PULD BHA_ PR1CSG PJSM;Break down BHA and faydown ,Retrieve rabbit. No Drill pipe dart 02:30- 06:00 3.50 RURD ELEC PRICSG PJSM;Rig up EXPRp to run Temp. Log .Gotlog down to ES Cementer would not go through, POQH change tooL 4/4/2007 06:00 - 08:30 2.50 LOG OTHR PR1CSG Run Expro temp survey 70D0' ta 91,222'. Tagged at 39,222'{float collar). Survey indieated thaf cement top is 9125'. R~Q Expro. 08:30 - 7U:30 2.00 TRIP DP PR1 CSG P!U Mi11 and bit sub. RIH to 2600`'. 10:30 - i1:00 0.50 CIRC_ MUD PRICSG Build and pump corcasion inhibitor dry job. 71:00 - 14:30 3.50 PULD DP PR1 CSG PJSM. Drop 2.3" Rabbit. POOH UD 4" DP. 14:30 - 15:00 0.50 PULD DP PR1CSG PJSM. UD BHA(did not find DP dart from liner job}. 1'S:00 - 96:00 1.00 TRIP: BHA PR1CSG P/U 5.22"Polish mill w/6" dress mill assy. 16:00 - 96:30 0.50 TRIP BHA_ PRICSG RIH dropping 2.3" rabbit in pP to 450', Rabbit stucR in DP. 16:30 - 17:30 1.00 TRIP_ DP_ PR1 CSG Rabbit wedged in DP stand due to rope that was tied to rabbit getting' along side rabbit. Clear DP of rabbit(no dart found). 17:30 - 21:00 3.50 TRIP_ DP PR1 CSG Cont. RIH dropping 2.3"rabbit(no dart#ound} 2i:OQ - 22:00 1.00 MILL PKR PR1CSG Polish LinerTo 6606' Drill pipe Meas. 22:00 - 03:00 5.00 TRIP DP PRICSG PJSM;POOH uvith polish:mill D3:00 - 06:00 3AQ PULD_ PKR_ PRICSG Pick up liner top packer RIH 4/5/2007 06:Q0 - 07:30 1.50 RUNPU TBG_ PR1CSG RIH W/ ZXP Liner top packer 07:30 - 09;00 1,50 RUNPU TBG_ PR1GSG Locate liner top drop setting baA , wait 30 min. , pump press. , up 300 psi , siack off into ,Iiner , pumping past setting ball . at 800-900 psi 09:00 - 12:00 3.00 SETREL PKR_ PR1 CSG Drop second baU ,wait one hour ,pump with rig pump able to pump up to 3100 psi, but was bleeding off when not pumping 3 bbl, min. attempt to set mech. , tuming left three wraps and working down .did not release. attempt to press. again,furn pump on to 3800 psi=290 gpm. with 44%o flow back.Liner setting toql #unctioned ,work pipe,released from acker,To of llner 6580' 12:00 - 12;30 0.50 SAFETY MTG_ PRICSG M;and JSA for laying down drill pipe 12:30 - 13:00 0.50 CIRC MUD PR1 C5G Mix and Pump dry job W/ 404 Conqorl4 Bbls.(Pkr.Running Toof Plugged up with setting aall. 13:00 - 20tQ0 7.OD PULD DP PRICSG POOH Lay down 4"drill pipe , 6582' 20:00 , 20:30 0.50 PULD PKR_ PR1CSG PJSM; and JSA Lay down Tie back running tool and maks serv. breaks. 20:30 - 21:30 1.00 CLEAN RIG PRITIE Clear rig floor and ciean. Blow down Mud Lines,Pull wear ring 21:3~ - 01:3Q 4.00 CHANG EQIP PR1TIE PJSM;, Rig down floor, Lay down handling equip.Change bails and eleu.,Clean Pits Rig up for 4 1/2 IBT tubing 01:30 - 06:00 4.50 PULD_ TBG PR1TIE P/U Seal Assy. and 4 1/2 tBT Tubing to 4000' at Q600hrs PM ~ ~ _ Marathon Oil Company Page 7 of 7' Opera#ions Summary Report Lega1 Well Namet NINILCHIK STATE 3 ~ Common Weli Name: NINILCHIK STATE 3 Spud Date:° 2/23/2007 Event Name: OR1GlNAL CQMPLETI~N Start: 3/20/2fl07 End: Contrac#or Name: GLACIER DRIL~ING Rig Release; Group; Rig Name: GI.ACIER DRILLING Rig Number: 1 Date I From - Ta Hours Code Code Phase Descriptinn of ~perations 06:00- 10':30 4.50 RUNPU TBG_ PR1TIE 10:30- 12>DO 1.50 RUNPU TBG PR1TIE 12:00- 13c00 7.00 RUNPU TBG` PR1TIE 13:00 - 14:30 1.50 RUNPU TBG PR1TiE 14:3U - 15;d0 0.50 RUNPU TBG PR1TlE 15:Da - 18:00 3.00 TEST CSG PR1TIE 18:00-18.301 0.5dINUND IBOPE IPR1TIE 18:30-19:04 0.50 'CLEAN RIG_ PR1TIE 19:~0 - 21:00 2.OQ NUND BOPE PR1TIE 21:00-06:00 9.00 NUND BOPE PRITIE 06:00 - 08:30 2.50 NUND TREE PR1TIE Q8:30 - 06E00 21.50 RURD RIG RDMO ~ 4/8l2007 ~ 06:00 - 12f00 I 6.q0 ~ RURD_~ RIG_ ~ RDMO Run 4 1/2 tubing to 2386' instail and test Chemical injection Mandrel and cantroi line to 2000psi / 10minJ hold 500psi on line. Gont Rih W/ 41/2 tubing. Make up top drive,circ.down stab seals info PBR and space out PJSM; Break out cross over to landing joint and retorque leaked. PJSM;Ghange over mud to completion fluid Land hanger, test body seal to 5U00 psi for TO min.(held) PJSM; 7est annular {Leak at tubing hanger injection line. Reinstall fittings and test again at5000 psi on hanger seals (good) Retest Backside to 1500 psi 30 min. (goodj Install back pressure valve. Rig down elevators ,links ,clsar floor PJSM; Nipple down BOP ,Change rams from 4" to 5" antl pickle BOP Gleaning pits,flush mud pumps,choke manifold,poor boy,top drive, Blow down equip. Cont. Nipple down BOP.Instail Prod. Tree PJSM; Ins#all production tree. Test voitl to 2000psU10min Test Tree to 5000/10min ( good j Pull TWC instali BPV. R/D GD-1 Prep for Move To 23X6'. R/D Top Drive, # 3 mud pump Cuttings tank, MI unit. R/D Torque tube, flow and wa#er fines, PuU " Service Lines Fuel air Water. R/D Choke lines. Load out Hanson, Guttings tanks. Buiid Ioads of misarig equip.PJSM;Crane down Wind walls , scope down derrick.Lay over derrick,set down dog house,choke house and misc. grey irort.split pits, Campiete crane operations. WD flaw line, hand rails. Remove fuel tank. load outdog and choke houses. Mave carrier off mud boat and R/D. Scope down sub. Hold PJSM; For trucic load and haul out of rig, Release rig to KBU23X6 At 1200hrs 4-7-07 Prinfed: 11l26/2007 2i04;09 PM ~~ ~J Marathon Oil Company ~'~9~ ~ pfi ~ ` Ctperations Summary Repart Legai Well Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date: 2/23l20Q7 Event Name: ORIGINAL COMPLETI~N Start> 3/25/200T End: Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number; 1 Date From - To Hours Code G d~ Phase Descriptivn of Operations 6/29/2007 08:00 - 08:45 0.75 SAfETY MTG WRLN Anive on locafion. Hold PJSM and obiain Safe Wark Permit, 08:45 - 12:45 4.~4 RURD ELEC WRLN Spot equipment and begin rig up, Discover BPV is still in well head.Call Vetco to dispatch operator to retrieve BPV. Wait on Uetco. 12:45 - 13:00 0,25 SAFETY MTG_ XMBO Hold PJSM and sign Vetcq on to Permit 13:00 - 13:15 025 RUNPU VLVE XMBO Pull BPV. RD Vetco. 13:15 - 14:60 0.75 RURD ELEG WRLN PU tools and run'in hole. 14:Q0 - 15:00 1.00 RUNPU ELEC WRLN Run free pl~ae pass. 45:00 - 15:10 ' 0.17 RUNPU ELEG WRLN Set down high @ 10,440'. TD should have been Landing collar @, 11,184`. Run repeat section. 45:10 - 17:Q0 1.83 RUNPU ELEG WRLN Run up pass starting @ 1 D,440'. Estimated #op of cement 9100'. 17:00 - 17:45 0.75 RUNPU ELEC WRLN POOH 17:45 - 18:30 0.75 RURD ELEC 1NRLN OOH. RD. 18:30 -18:45 Q.25 RURD ELEC WRLN Tum in permit Sign out, Leave location. Ciose antl lock gate. 9l27/2007 11:23 - 11 s30 0.1~ Notify Jin Regg with the AOGCC about pending BOP test tomorrow 9/27/2007 at approximately 2:Op pm. Jim said " if I wasn't eontacted #o consider the test waived and sabmit the BOP test form as required ". 14:00 - 14:10 0.17 SAFETY MTG PR1 EVL Move over from NS-2. Hold PJSM. Have Safe Work Rermit. 74:10 -14,20 0.17 RURD_ SLIK PR1 EVL `RU. PU lubrlcator. PT lub~icatoc Test gaod. 14:20 - 15:20 'I.OQ RUNPU SLIK PR9EVL RiH w/ 3.80" GR. to 6604 KB. Couldn't pass:,POOH. 15:2U - 16:10 0.83 RUNPU SLIK PR1EVL RIH w/ 3.75" GR. to 6604. Couldn't pass. POQH. 16;10 - 16;50 0.67 RUNPU SLIK PRIEVL RIH w/ 3.55" GR. to 6604. Couldn't pass. P40H. 16:50 -17:3d 0.67 RURD SLIK PR1 EVL RD for the night. Secure well. Tum in permit and leave locatipn. 9/28/2d07 07:30 - 07:45 0.25 SAFETY MTG PRIEVL Hold PJSM. Discuss Pol4ard JSA. Obtain Safe Work Permit. 07:45 - 08;00 0.25 RURD_ SLIK PR1 EVL Rig up equipment. '08:OQ - Q8:9 5 0.25 RURD_ SLIK PR'1 EVL RU. PU lubricator. PT lubricator. Test good. 08:15 - 09:45 1.50 RUNPU SLIK PR1EVL RIH w/ 3.80" GR. to 8644' KB. Tag HES cernenter. POOH. ~9:45 - 12;00 2.25 RUNPU SLIK PR1 EVL Stand by for plug to aperate HES cementer openning and closing ' sleeves. 12:0~ • 13:00 1.00 RURD SLIK PR1EVL RD and move to GO Pad. 13:00 - 14:00 1.00 SAFETY MTG PR1 EVL Hold PJSM. Discuss BJ Coil JSA. Transfer Safe Woric Permit. 14:D0 - 16:OQ 2.00 RURD_ COlL PR1 EVL Spot coil equipment. Rll 2" hard lines, gas buste~ and choke skid, Vac trucks hauling water.; 16:00- 16:20 0.33 RURD COIL PR7EVL install BOP's. 16:20 - 16:50 0.50 RURD COIL PR1 EVL PTest surface Ifnes-250 lo/ ~15D0: psi high, i G:50 -17:20 0.50 TEST_ BOPE PR~ EVL Fuction test BOP's. Ptest blindi shears-25Q low/ 4500 psi high. Test 17:20 - 17:55 0.58 7EST BOPE PR1 EVL Ptest pipe/slips-250 low/ 4500 psi high. Test good. 17:59 - 18:30 0.5$ RURD COIL t'R1 EVL Shut down. Glose swab andmaster valves. Secure location for the nignt. Turn in permit. l,eave locateian. Cfase and lock gate. 08:00 - 09:00 1.00 SAFETY MTG PR1 EVL Hold PJSM. Discuss Poilard/ BJ's JSA's. flbtain Safe Work Permit. Discuss job detaiis and scope. 09:00 - 09:30 O.~aQ RURD_ SLIK PR1EVL Rig up equipment. BJ test Pollard's lubricator to 3500 psi. Test good. 09:30 - 09;40 0.17 RURD SLIK PR1 EVI. Upen swab and master valves. Test casirtg to 1500 psi. Test good. 09:40 - 11;15 1.58 RUNPU' SLIK PR1 EVL RIH wt 3.80" Closing plug w/ fishing neck to 8643' KB. Tag NES 11:15 - 11:20 D.08 RUNPU SLIK PR1 EVL Pressure up on plug to 2150 psi to shift sleeves in HES cementer. Hold' pressurefor 5 m~nufes. 11:20 - 1 t:25 0.08 RURD SLIK PR1 EV~ Release pressure. No indication that the toal shifted. 11:25 - 11:30 0.08 SAFETY MTG_ PR1 EVL Pressure np on. plug again to 2200 psi. Mold pressure for 5 min. 14:30 - 11;35 OAS RURD _ GOIL PR1EUL Release pressure . No indication that taol shifted. 11:35 - 12#20 0.75 RURD COIL PR1EVL PUH 200'. 12:20 -12:25 0.08 TEST_ EQIP PR1 EVL Pressure test casing #0 3500 psi. HES cementer opened at 33Q0 psi. Prinfedt t1/"LS/Z(7o7 Y:u5:41 rM ~ ~ Marathon Oil Company Page 2 of ~ Dperations Summary Report Legal Well Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date; 2/23/2007 Event Name: ORIGINAL COMPLETION Start: 3/25/2007 End: Contractor Name; GLACfER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Numbert 1 Date From - To Hours Cotle Rhase ` Description of Operatians Code 9/29/2p07 12:20 - 12:25 0.08 TEST EQIP PR1 EVL Pressure dropped to 140 psi. 92:25 - 12;30 0.08 RUNPU SLIK PR1 EVL Drop plug back down into HES cemente~. 12:30 - 12`35 0.08 TES?_ EQIP PFt1 EVL Pressure up to 2550 on plug. 12:35 - 12:50 025 RURQ~ GOI~ PRIEVL Re~ease pressure. PUH 100'. Ptest casing. Pumping tnto well @ 1400 psi. Tool not closed. 12:50 - 12<55 OA8 RUNPU SLIK PRIEVL Drop plug back down into HES cementer. 12:55 - 13:00 O.D8 7E5T_ EQIP PR1 EVL PTest plug in e~menter to'3U50 psi, 13:00 - 13:03 0.05 7EST EQIP PR1EVL Pressure holding Q 347a psi. Release pressure. 13:03- 13t05 0.03 RUNPU SLIK PR1EVL PUH 100`. 13:05 - 13:10 0.08 TEST EQIP PR1 EVL PTest casing. Pumping into formation @ 1300 psi, 13:10 - 13;17 0.12 RUNPU SLIK PR1EVL: Drop plug back down into HES cementer @ 864Q'. 13:17 - 13:25 0.13 7EST EQIP PR1 EVL Pressure up on ,lug ta 3500 psi. At 3200 psi pressure broke back to 2900 psi. Continue pumping up to 3600 pst, ool shi ed. 13:25 - 13:30 0.08 TEST_ EQIP PR1 EVL e ease pressure. 13:30 - 13:35 D.OS RUNPU 'SLIK PR1 EVL PUH '100' to 8540'. 13:35 - 13;40 0.08 TEST EQIP PR'I EVL PTest casin to 3450 si. Test ood. 13:40 - 14:15 0.58 RUNPU S~IK PR1EVL PQOH. 14:15 - 15:00 ~.75 RURD SLIK PR1EVL OOH with toals. Cut 50' of coil. 15:00 - 15:15 0.25 RURD_ GOIL PR1 EVL Install new grapple, 15:15 - 15:30 0.25 RUftD COIL PR1 EVL Pull test grapple to 16K. Test good 1530 - 96:04 0.5fl RURD_ COIL PR1EVL Seeurewell and ioeation for thenight. Turn in permit and leave location. 9l30/20D7 07:30 - 08:00 0.50 SAFE7Y MTG PR1 EVl Hold PJSM. Discuss BJ's JSA and safety meeting checklist. Obtain Safe Wor[c Permit. Discuss job details and scope. 08:00 = ~8:55 0.92 RURD_ COIL PR1 EVL PU injector and fiil GT. 08:55 - 09:~5 1.00 RURD COIL PR1 EVL PT coil connector to 3500 psi and bleed down CT. 09:55 - 11:10 1.25 RURD COIL PR1EVL PU lubricatorand Motor/ 3.8Q" mlll. Stab on weii. 11:10 - 11:3Q 0.33 TES7_ EQIP RR1EVL Test iubrica#vr 300 / 3500 psi. 11:30 - 14:10 2.67 RUNPU COIL PR1EVL RIH 3.80" mill and tag ZXP at 66Q0'. Roll motor and drop through ZXP; Tag ES eementer at 8641'. 14:10 - 17:~0 2.83 DRILL_ CMT PR1 EVL Drill 2 seats in ES cementer. Many stalls and 2 seats about 1.5' apart. 17:00 - 19:00 2.00 DRILL_ CMT_ PR1 EVL Drill cement st~ingers from 8440' to 11190'. Very IitUe drilking, cloudy returns: 19:00 - 20:45 1,75 RUNPU COIL PR1EVL POH. 20:45 - 22>00 1.25 RURD COIL PR1 EVL Rig back CT to allow eline to RU and run GBL. Leave location. 10/1/2007 10:00 -10:45 0.75 SAFETY MTG WRLN rrne on ocat~on. o: ~n o tain Sa e Work Permit. 1D:45 - 12:20 1.58 RURD ELEG 1NRLN 5pot equipment and begin rig up. D~scaver BPV is still in well head.Call Vetco to dispatch operator to retrieve BPV. Wait on Vetco. 12:20 -13:15 0:92 RUNPU ELEC WRLN RIH CBL. 13:15 - 13:30 0.25 LOG CSG_ WRLN Log free pipe from 8700'. 13:30 - 15:1Q 1.67 LOG_ CSG_ WRLN Tag bottom at 11,177' ELMD. LOG CBL from 11177` to 8500'. 15:10- 16:00 0.83 RUNPU ELEC WRLN POOH 16c00 - 16:45 0.75 RURD ELEC WRLN OOH. RD. 16:45 - 17:00 0.25 RURQ_ ELEC WRLN Turn in permit. Sign out, Leave location. Close and lock gate. 10/2(2007 -08:00 - 09c00 1.00 SAFETY MTG PR1EVL Arrive on locatiort. Hold PJSM and obtairt Safe Wortc Permit. 09:00 - 10:00 1.00 RURD COIL PR1EVL Start equipment. Instalf BHA consisting of Jet noale 2.0" OD x 5°L, straight bar 1-3/4" OD x 36" L, Dimpie on connector 1-314" OD x 5" L. Pvll test cannector to 15K. Test good. 10:OU - 10:45 OJ5 RURD_ COIL PR1 EVL Carry injector to well head: Install walking dogs. Check alignment. Chain down gas buster. Cool dawn N2. 10:45 - 11;15 0.50 RURD COIl. PR1 EVL PTest coil and surface lines to 2500 pst. Test good. 10:30 Call Jim Regg giving 24 hrs. notice of B~P test at GLU i rd. PrintwA..~ .t...il2fi1J071~ 9tO5~A1 PM ~ ~ Marathan Oil Company Pa9e 3 of 6 Uperations Summary Repvr~ Lega( Welf Name: NWtLCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date; 2/23/2007 Event Name: ORIGINAL COMPL~TION Start; 3/25/2007 End: Contractor Name: GLACIER DR1LLfN'G Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date Frc~m - To Hours Code Co~~ Phase ~escription of Operafions 1Q/2l2007 11:15 - 12:45 1.50 RUNPU COIL PRIEVL RIH. Start N2 @500 scfi/min, Good retums. 12:45 - 73:00 0.25 RUNPU COIL PR9EVL 13:00 -13:15 0.25 RUNPU COIL PR1EVL 13:15 - 13:45 0.50 RUNPU COIL PR1EUL 73:45 - 14;05 0.33 RUNPU COIL PR1EVL 14:05 - 14:30 0.42 RUNPU COIL PR1 EVL 14:30 - t4:45 I ~251 RUNPUl1 GOIL f PR1 EVL 14:~}5 - 14:50 J 0.08 ~ RUNPUy GOIL ~ PR1 E1/L 14:50 - 15:20 0.50 RUNPU COIL PR1EVL 15:20-15:45 0.42 RUNPU COIL PR1EVL 15:45 - 16:20 0.58 RUNPU - GOIL PR1 EVL '16:20 - 18:1D 1.83 RUNPU GOIL PRIEVL 18.90- 18;30 I 0.33~ RURD_IC011. IPRIEVL 1830 - 19:Q0 0.50 RURD_ COIL PR1 EVL ~ 10t3/2007 I 09:00 - 1~2:30 I 3.50I RURDTMI GOIL I PR1 EVL ~ 10/5l2007 I 09 00 -19 66 ( 2 OO I RURD Y~ COICL ~ PR1 EVL 11;00 - 13:15 I 2.251 RURQ I COIL I PR1 EVL 13:15 - 13:40 0.42 WORK ELEC PRIEVL 13:40 - 17:00 3.33 WQRK ELEC PRIEVL 17:U0 -17:45 0.75 PERF_ TBG_ PR1 EVL 17:45 - 18:15 0.50 RURD_ ELEC PR1 EVL 18:15 - 19:00 f 0.751 RURD I ELEC I PR1 EVL 10/6/2Q07 08;OQ - 49:00 1.00 SAFETY MTG PR1 EVL 09:00 - 10:30 1.50 RURD_ ELEC PR1EVL 10:30-12;00 1.50 LOG_ OTHR PR1EVL 1~:00 - 15'i4~ 3,67 LOG` OTHR PRIEVL Spotty retums. Hold at 5400'. Pull test -8K. WHP 1560 psi. N2 @ 500 scftmin. RIH. Continue N2 @ 500 scf. Steady returns. 6500' Steady retums(c}ean}, WHP 1595 psi. 8500'. WHP 1700 psi. 41" in retum tank-100 bbls recovered. Parked @8800'. Increase N2 rate to 1000 scf. WHP 2070 psi. 46" in return tank_ 117 bbls recovered. RIH, Reduce N2 rate to 350 scf. Recaveretl 57" in return tank. Recovered 136 bbls. WHP Park @ 9500'. Retums slowed down to a dribble. Recouered 57". -157 bbls. Transfer 85 bbfs out to vac fruck. Increase N2 rate to 1200 scf/min. 35" remaining in retum tank,. R1H. Park @ 11,150'. Increase rate to 120D scfJmin. WHP 210~ psi. N2 breaking up coil. Shut down N2, POOH. Retum tank strep 42". 189 bbls recovered. WHP 229~ psi. OOH. Close swab and master vaives trapping 2140 psi on well. Vent N2 pressure on lines to the gas uster. Lay down injector. Install night cap. Secure well and location for the night. Turn (n permit and leave location. Lodc gate. Arrive on IocaUon. Hold PJSM and obtain Safe Work Permit. RD BOP?s from wellhead. Break out 2" hard lilnes. Set down gas buster. Break out h12 unit and coil unit. PU dudc ponds. Load up BOP's and lub~cator. Send first wave of equipment to CLU 1. Laad gas buster and choke skid on Cartile truck. Load out crane. Tum in permit. Sign aut. Leave location. Amve on location. Hold PJSM and obtain Safe Woric Permit'. Spot equipment around well head. Lay out linec Found loose tree flange an top of Vee caused delay in rigging up lubricator to tree. Qperations cheeking flow line to separator for leaks prior to continue with perforating. Operator completed leak checks on flow lines. MU 3.375" Ge6 Dynamics guns loaded @ 4 SPF, 60 deg. Phased, w/ 23 gms Connex charges and PX firing head. Go ta communication black out on pad prior fo arming gun. Go to well with lubracator, PT ta 3000 psig wfth fluid, good fest. Qpen well, RIH to perfarate ftom 10968' - 10989' DIL (21'~. Correlate Expro CBL dated 9-30-2007 with WeatherFord Array'indue#ion log dated 3-21-2007. Blew down well to 1800 psig prior to perForating zone. PerForate from 10968' - 10989'. No change in surface pressure. POOH with gun. i OOH wikh gun. Lay down gun, verified that the gun fired. A!I shots fired. Rig back electric line unif. F~r continuing to perForate tomorrow. Expro left lease. Vented N2 through separator down to 695 psig, no steady flow, Shut in to see if well will pressure up. Arrive on location, Hold PJSM and obtain Safe Work P~rmit. MU P(f logging tooi string. PT lubricator. goad test. RIH with P/T log. Logging tools fatiing very slow in well bore. WHP= 760 psig. Water top found at 10524', MPP pressu~e Q 1192 psfg. Very little Printetl: 7 V26l2001 2:U5:41 NM i ~ Marathon Oil Company Page ~- o~ 6 ~perations Summary Repor~ Legal Well Name; NINILCHIK STATE 3 Common Well Name: NfNILCHIK STATE 3 Spud Date: 2/23/20Q7 Event Name; ORIGINAL COMPLETION Start: 3/25/2007 End: Contractor Name: GLACIER DRILLING Rig Release: Group: ; Rig Name: GLACIER DRILLING Rig Number: 1 ~ Sub Date From - To Hours Code ~ode ~~ase Descr~ption ~f Upera#ians 94/6/2007 12:00 -15:40 3.67 LOG_ OTHR PR1 EVL conthbution from zone at ~ 0968' - 1 Q989'. POOH with logging toa}s. 15:40 - 16:30 0.83 LOG_ OTHR PR1EVL OOH with taol string. Rig back electrio line unit. 16:30 - 16:40 0.17 RURD_ OTHR PR1EVL MIRU N2 pumping unit, Held PJSM with personnel and upfained hot ~ work pecmit. MU hard line to flow lines. 16:40 - 17;15 0.58 RURD_ ELEC PR1EVL Expro left lease. 13:15 - 17t50 ~ 0.58 WORK t ELEC I PR1 EVL 10l7/2007 l09:00- 1~0:00 I 1~.OQ, R RDTMIELEC (PR9EVL 10:00 - 11:20 ~ 1.33 ~ RURD_~ ELEG I PR1 EVL '11:20 - 13:30 ~ 2.17 ~ WORK ~ ELEC ~ PR1 EVL - 13:50 I 0.33I PERF_ITBG_ 13:50 -14:10 I 0.33 I PERF_ ~ TBG, ~ PR1 EUL 14:10 - 14:30 0.33 14:30 - 15:10 0.67 15:10 - 16:50 I 1 16:50 - 17:10 WORK ELEC PR1EVL WQRK ELEG PR1EVL WORK ELEG PRIEVL PERF TBG PR1EVL 17:10 - 21;q0 I10/8f2007 ~D0:00-11~.00 ~ 1AOIRURD~IE EC IPR1EVL 1Q:00-11;20 ~ 1.33~RURD_~ELEC ~PR1EVL 11 t20 - 12;30 ~ '1.17 12:30 -13:05 13:05 - 93i45 I 0.67 13cA5 - 14,50 1.08 EVL PR1EVL PERF_~TBG_ ~PR1EVL LEC IPR1EVL LEC PRIEVL PT hard line to 3000 psig, Open up weil to pump down tubing. Pressure up well to 180~ psig. RQ pumping unit. BJ pumping unit left lease. ARive on location. Hold PJSM and obfain Safe Work Permlt. . MU 3.375" Geo Dynamics guns foaded @ 4 SPF, 60 deg. Phased, wi 23 gms Connex charges and PX fi~ing head, Go to communication black out on pad prior to arming gun. Dump 5 gals of diesel down well to break up wire line grease in well to help to get gun to f~A in weli. P7 guick sub to 3000 psig, good test. Open well. WHP= 1714 psig: RIH with select firing perForating gun to perforate from 10852' - 10862` / {10'j and 10738' - 1075U' (12'). Gorrelate Expro GBL dated 9-30 2007 with WeatherEord Array induction log dated 3-21 2007. Perforate from' 10852' - 10862`. Wait 15 minutes, No change in surEace pressure. Correlate Expro C8L dated 9-30-2007 with UVeatherford Areay induction log dated 3 21-2007. PerForate from 10738` -10750' DIL, POOH with gun No chanqe in surface pressure. OOH with gun, all shats fired. Mu 14' gun. Prior to arming gun, go to Communication BLBCk out ort pad. PT quick sub, Open well. RIH with gun#4 to perforate from 10332' - 90346' (14'}, Could not get ~ the IES pressure sensor to downlaad affer 1 hour, decided #o make gun run with out the IES gauge. Correlate Expro CBL dated 9-30 2007 with Weatherford.Array induckion log dated 3-21-20~7. Perforaie firom 10332 - 10346' DIL (14'). POOH yvith qun WHP=1725 psiq, After 15 minutes pressure at 1735 psiq. (+10 psig) OOH with gun, blow dow~ lubricator. Lay down gun, afl shots fired. 5ecure well. Rig back electric line unit for nighf. Expro left lease. Arrive on location. Noid PJSM and obtain Safe Work Permit. MU 3.375" Geo Dynamics guns loaded @ 4 SPF, 60 deg. Phased, w/ 23 gms Connex charges and PX firing head. Go to communication black out on pad priorto artning gun. Dump S gals of diesel dow~ well to break up wire line grease in well to hetp to get gun to falf in well. PT guick sub to `3fl00 psig, good test. Open well. WHP= 1830 psig, built up over night Blew tlown to 1635 P51G. RIH with select firing pertorating gun to perforate from 1 Q078' - 10090` {12'). Gorrelate Expro CBL dated 9-30-2007 wiih Weathertorsi Array inductibn log dated 3-27 2007. Perforate from 10078' - 1~090' DIL, (12'). NL_~ chanqe in surface uressure. PO~H with gun. OOH with gun, all shots Fire~i. ~ OOH with gun, blow down lubricafor. Lay down gun, all shots fired. Secure well. Rig down lu6ricator. 2tl5•41 PM ~ ~ Marathon Oil Cornpany Ra~e 5 of 6 Operatians Summary Report Legal Well Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date:; 2/23/2007 Event Name: ORIGINAL COMPLETION Start: 3/25/2007 End: Contractor Name: GLACI~R DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number; 1 Date From - To Hours Code Co e Phase Description of Qperations 10l8/2007 14:50 - 18:d0 7.17 RURD;_ E;LEC PR1 EVL Expro left lease. 10I1~112007 08:00 - 09:15 9.25 SAFETY MTG PR1EVL Arrive on tocation. Hotd PJSM and obtain Safe 1lVork Permit. 09:15 - 09:45 0.5Q RURD €LEG PR1 EVL Spot and i2U eline unit. PU gun #1, 21' 3-3/8" 6 spf 60 deg phasing. 09:45 - 10:30 0.75 SAFETY MTG PR1 EVL Hold arming safety meeting. SD all radios and phones (SAFE System). 1 U:80 -~0:45 0.25 TEST_ EQIP PR1 EVL Stab on weil and PT lubricetor to 3040 psi. 1 tl.45 - 12:50 2.08 RUNPU ELEC PR1 EVL RIH and tie in gun # 1 to CBL. ~ 12:50 - 14:00 1.17 PERF_ CSG_ PR1 EVL Shoot gun #1. Reperf interval 10,968' - 10,989'. THP - 1622 psi. No change in pressure. . '14:00 - 14:20 0.33 SAFETY MTG_ PR1 EVL Hold arming safety meeting. SD all radios, phones and SCADA (select fir is not SAFE). Arm gun #2 to shoot 2 ea 10', 3-3l8" 6 SPF 60 deg phasing select fire. 14;20 - 14:25 Q.U8 TEST EQIP PR1 EVL Stab on well and PT quick fest sub to 3000 psi. 14:25 - 16:30 2.Q8 RUNPU ELEC PR1 EVL RIH and tie in gun # 2 ta CBL. 16:30 - 16:40 0.17 PERF CSG_ PR1 EVL Shoot new intervaf from 9784' - 9794' CH 9790' - 9800' OH 1&22 psi; / no change. 16:44- 17;35 0.92 PERF_ CSG PR1 EVL 5hoof new intervaf from 9490' - 950D' CH 9497" - 9507' pH 1622 psi, r no chartg~. POH 17:35 -17:45 0.17 SAFETY MTG_ PR1 EVL Hold arming safety meeting. SD all radios and phones>(SAFE).-Arm gun #3 to shoot 1d', 3-3/8" 6 SPF 60 deg phasing. 1 i:45 - 9 7i55 p.17 TEST_ EQIP PR1 EVL Stab on weil and PT quick test sub to 30Q0 psi. 17:55 - 20[35 2.67 RUNPU ELEC PR1 EVL RIH and tie in gun # 3 to GBL. Bleed weli to 1570 psi. 20:35 - 21:35 1.d0 PERF_ CSG_ PR1 EVL Shoot new interval from 9359' - 9369' CH (9367' - 9377' OH) 1594 psi, ~ well pressure increase was about 1 psi/min, now abvut 1.5 psi/min. POH 21:35 - 22:30 0.92 RURD_ ELEC PR1 EVL RD and release E7tpro. 10/18/2007 08:00 - 09:00 '[.00 SAFETY MTG PR1 EVL Arrive on IacaGon. Heltl PJSM and o6tain Safe Vilork Permif. 09:00 - 10:30 1.50 RURD_ ELEC PR1 EVL U PLT I in tr~ol string. P7 lubricator to 3000 psig, goad test. 10:30 - 12;00 1.50 LOG_ OTHR PR1 EVL Open weN. RIH with Logging. WHP= 76Q psig, 1398 MCFP rate at 16 BPQ. 12:00 -15;40 3.67 LOG_ OTHR PR1 EVL Made logging pass at 30, 60 & 90 FPM. POOH with logging taols. 15:40-96;30 0.83 RURd_ ELEC PR1EVL OOHwith tool string. Field data indicates that water close to surface & nearly all the gas coming ouf ofupper zone at 9497' - 9507' DtL. Smap amounYaf flow from 979Q - 9800'. 16:30 - 37:D0 0.50 RURD_ ELEG PR1 EVL RD and clean up around well head. Expro left lease. 11/9/2007 10:30 - 11z30 1.D0 SAFETY MTG PR1EVL Arrive on location, Held PJSM antl obtain Safe Work Permit; 11:30 - 12c30 1,00 RURD_ ELEC PR1EVL MU setting toot and 4-1l2" GIBP. Drop two soap sticks. 12:30 - SAFETY MTG PR1 EVL Hold Explosirres Safety meeting prior to arrnmg tool. Shut down all cell phanes and SCADA(na Safe System on Setting charge). Arm tool. 13:30 - 13:45 U.25 RURD_ ELEC PRIEVL PT lubticator to 2500 psig, good test. 13:45 -14:15 0.5d RUNPU ELEC PR1EVL Open well. RW with setting tool. WHP= 770 psig, 1398 MCFPD. Tools will not pass thro master valves 94:15 - 74:35 0.33 RUfVPU ELE~ PR1EVL RU 3J5" gauge ring and junk basket. Will not pass thru masker. 14:39 -15:30 0.92 RURD ELEC PR9EVL Remove gauge ring. Re-run junk basket to 300'. POOH. 15 30 16:55 1.42 RURD_ ELEC PR1EVl. RU CIBP, pinch i~ w/ wing valve a RIH. I 16 55 - 17:05 0.17 LOG_ CSG_ PR1 EVL Correlate to short joint @ 10,542'. , 17.05 - 17:OJ 0.07 RUNPU ELEC PR1 EVL Pull into position @ 10942 (CCL de pth} to set CI~P @ 10,950` KB, ~, 17:09 - 17:15 0.10 RUNPU ELEG PR1 EVL Set plug, PU and set baek tlown to confirm setting. ' 17:T5 - 18:25 1.17 RUNPU ELEC PR1 EVL POOH. RD. 79:15 - 20;OQ 0.75 RURD ELEC PR1 EVL RD and clean up around welt head. Gheck with Productian. Well still i flowing 1.4 MMscf @ 770 psi_ , 20:00 - 20:15 Q.25 RURD_ ELEC PR1 EVL Turn in permlt and leR tease. Lock gates. ~ PM • ~ Marathon Oil Company P~ge 6 of 6 Operations Summary Report Legal Well Name: NINILCHIK STATE 3 Common Well Name: NINILCHIK STATE 3 Spud Date: 2/23/20fl7 Event Name: ORIGINAL COMPLETION Start: 3/25/2007 End; Contractor Name: GLACIER DRILLING Rig Release: Group: Rig Name: GLACIER DRILLING Rig Number: 1 Date I Frorn - To ~ Hours ~ Code I C de Phase Description of Operations 11/22/2D07 ~ 72:15 -12:30 I 0.25I SAFETYI MTG~ I CMPPRF I Arrive on location, obtain work permit and sign in. Hold PJSM with Expro JSA. 12.30 - 13:0~ 0.50 RURD_I ELEC (GMPPRF RU ASRC crane and pick well house. 13:00 - 13:4D 0.67 SAFETY{ MTG_ GMPPRF MIRU Expro. PU lubncator_ MU tool sMng. PU 2-10 sections' of 3-3l8" Geo Dynamic 4 spf, 6~ degree phased perF guns w/ 23 gms Connex cha~ges. Select fire for ea~h iD' se~fion. 13:40 - 13:45 0.08 SRF~TY MTG_ CMPPRF Hold explosive safety meeting ~nd inform all pad workers of expiosive operations. 5hut dowrt afl celiphones. Disable SCADA{no SAFE system for these guns. ' 13:45 - 13;55 0.17 RUNPU E~EC GMPPRF ~ Arm and PU 2-10' sections of 3-3/8" - Geo Dynamic, 4 spf &D degree ~ phased w/ 23 g~m Connex charges. Select fire perf gun. 73:55 - 14;1Q 4.25 TEST EQJP CMPPRF PU and install qubricatocPressure test Lubricator to 2504 psig. Test good. I 14:10 - 15:20 1.17 RUNPU ELEC GMPPRF R1H with well flowing1367mcf @ 774 psi. ' 15:20 - 15:40 0.33 RUNPU ELEG CMPPRF Run correlation strip across short joint @ 10539'- 10559' 15_40 - 15:45 0.08 RUNPU ELEC CMPPRF Pull into position @ 9476' {CCL depth}. 15:45 -15:50 0.48 PERF_ CSG CMPPRF Perforafe @ 9490'-9500' (CH) - 9497'-95Q7' (OH) (7 foot off depth l from correlation), Losi weight on the tooi string when we perforated. S6cky pulling off depth, pUH. 15:50 - 15:52 0.03 RUNPU ELEG CMPPRF Pull into position @ 9357.5' (CCL depth). 15:52 - 16:40 0,80 PERF GSG_ GMPPRF Perforate @ 986U'-9370' (CH) - 9367'-99377' (OH} (7 foot off depth~ from corcelation), Lost: welght an fhe toof strfig when we perforated. Sticky pulling off depth, POON. 16:40 =17:30 0.83 RURD ELEC CMPPRF flOH, Lay down tools and Cubricator. R~. 17:30 - 17:45 0.25 RURD_ ELEG CMPPRF Sign out and Leave Lacatton. 11/26/2007 2405.44 PM ACTUAL "WELLPATH REPORT (CSVversion) Prepared by Baker Hughes I`NTEQ Software System: WellArchitectT""1.2 REFERENCE WELLPATH fDENTIFICATfON Operator Area Fiefd Facility Slot W ell W ellbore Weilpath Sidetrack REPORT S'ETUP INFORMATION Projection System North Reference Scale Wellbore Last Revised S~ftware System User Report Generated DataBase/Source file W ELLPATH LOCATiON Slot Locafion Facility Refe~ence Pt Field Reference Pt WELLPATH DATUM Calculation methad Horizontaf Referenee Point Vertical Reference Point MD Re#erence Point MARATHON Oil Company Cook lnfet, Alaska (Kenai Penninsula) N'inilchik Field Ninilchik S#ate Slot #3 NS #'3 NS#3 NaviTrak<0-164~'>ATK G3<9650 - 7176'>NaviTrak e7316 - 11962'> (none) i NAD27 / TM Alaska Sta#e Plane, Zone 4(5004), US feet TRUE 0.99999 03123/07 V1ieflArchitectT"" Jonethoh 03/26/07 at 11:43:5Z WA Anchorage/ev0'[.xml Local Local Grid North East East [ft] [ft] [ftj -850.48 'i 080.27 222324.3 221264 226657.8 Grid North Latifude ~~f~ ~°~ 2245972:31 60 08 20.813N 22468A~7.56 60 08 29,1 gON 2252005.19 9 60 09 2'I .189N Longitude. [°l 151 31 24.0671N 151 31 45.399W 151 30 01.220 W Minimum curvature Slot Glacier#1 (RKB) Glacier #1 (RKB) Field Vertical Reference Mean Sea Level Gtacier #'1 (,RKB) to Facility Vertical Datum 169.00 feet' Glacier #1 (RKB) to Mean Sea Level 169.00 feet Facility Vertical Datum to Mud Line (Facility} 0.00 feet Secfion Origin X 0.00 feet Section Origin Y 0.00 feet Section Azimuth 317.33° W E L L P A T H D A T A Wellbore: NS#3 Wellpath: NaviTrak<0-t640'>ATK G3<1650 - 7176'>NaviTra& <73ifi - 11962'> t= interpolated/extrapolated station Course Vert MD Length Inclination Azimuth TVD Section North East Grid East Grid North DLS Build Ra#e Turn Rate us us survey survey feef feet deg deg feet , feef feet feet feet feet deg/1OOft deg/1OOft deg/1Oaft 0 0 0 0 0 0 0 0 222324:31 2245972.31 0 0 0 125 125 0:4 98;9 125 -0.34 -0.07 0.43 222324.74 2245972;23 0.32 0.32 0 '[ 52 27 0.5 86.5 152 -0.49 -0.07 0.64 222324.95 2245972.22 0.51 0.37 -45.93 21 ~' 60 0.8 335.5 212 -0.26 0.32 0.73 222325.05 2245972.62 4.81 0'.5 -185 272 60 1.8 3282 271.98 1:07 1'.5 0.06 222324.4 2246973'.81 1.69 1.67 -12.17 332 60 3.5 318.9 331.91 3>82 3.69 -1.64 222322.75 2245976_Q3 2.91 2:83 -15.5 392 60 5.1 316.4 391.74 8.32 7 -4.68 222319.79 2245979.41 2.68 2.67 -4.17 452 60 6.1 314.8 451.46 14.17 11.17 -8.79 222315.78 2245983.68 1.69 1.67 -2.67 512 60 8.9 312.$ 5'10.94 21.98 16.58 -14.45 222310.24 2245989:21 4,69 4.6T -3,33 573' 61 13.1 316.5 570.$ 33.61 24.8 -22.68 222302.21 22~5997.63 6.98 6.89 6.~7 634 61 17.4 321:9 629.64 49.62 37 -33.07 222292;1 2246010A6 7.42 7.05 8.85 895 61 22 319.8 687.06' 70.14 52.91 -46.08 222279.46 224602fi.27' 7.63 7.54 -3.44 756 61 26 316.7 742.78 94.93 71.38 -62.63 222263.34 2246045.11 f.87 6.56 -5,08 $18 62 30.4 315.6 797.4 124,21 92.49 -$2.94 222243.53 2246066.68 7.15 71 -1.77 879 61 34.4 3'! 4.4 $48.9 156.86 1'f 5.58 -1 ~~.06 22222Q.95 2246090.3 6,64 6~.56 -1.97 943 64 38.5 3'f 3.5 900.37' 194.81 141.95` -133.44 222194.18 2246117.3 6:46 6.41 -1.41 1007 64 42.8 316.4 948.92 236.45 171.43 -162,9 222165.41 224614Z44 7.34 6.72 4.53 1070 63 46.5< 319.1 993.73 280.71 20421 -192.63 222136.44 2246180:9 6.6 5.87 429 1133 ~3 49.9 318.5 1035 72 327.65 239.54 -223.56 2221 d6.33 2246216.93 5.44 5.4 -0.95 1196 63 53.1 318.8 1074.93 376.94 276.55 256.13 222074.63 224G254.68 5.d9' 5.08 0.~8 1259 63 56.3 319.1 1911.33 42$.32 315.32 289.89 2Z2041.77 224629422 5.09 5.08 Q.48' 1322 63 60 3'1$.4 1144.57 481.$1; 355`.54 -325.17 222U07.42 2246335,25 5.95 5.87 -1.'11 1385 63 62.3 317.5 1174.9?' 536.99 39651 -362.13 221`97'1.42 2246377.06 3.86' 3.65 -1.43 ~ L~ 1449 64 65 317.2 "1203.37 594.33 438.68 -400.99 221933.55 2246420.12 4.24 4.22 -0.47 1511 62 65.2 316.9 1229.48 65p.57 479.$5 -439.3 229896.19 2246462.15 0.54 0.32 -0.48 1583 72 65 317 1259.79 715.87 527.57 -483.89 221852.72 2246510.89 0.3'I -Q:28 0.14 1650 67 64.2 318.~ 1288.53 776.39 572.3 -524.66 221812.99 2246556:54 ~.12 -1.19 1.94 1777 127 65 39 7.8 1343.01 891.11 657.62 -601.35 221738.29 2246643.6'~' 0.72' 0.63 -0_39 1902 12v 65 3'18:9 1395.83 1004.37 742.27 -676.64 224684:98 2246729.97 0.8 0 0.88 2029 '127 6b.1 317.7 1449.41 1119.5 828.24 -753.23 221590.38 2246$17.68 0.86 0.08 -0.94 2156 127 65 319.2 1502.98 1234.62 914.41 -829.61 221:5'16.02 2246905.59 1.07 -0.Q8 1.18 2282 126 65.1 3'19:3 1556.13 1348,8 9 0Q0.95 -904.18 221443.46 2246993.83 0.11 d.08 Q.08 2408 126 65.1 318.2 1609.18 1463.05 1 d86.88 -979.53 221370.11 2247081.47 0.79 0 -0.87 2536 128 65.1 318.1 1663.08 1579.14 11 ~3.36 -1056.99 221294.67 2247169.7~ 0.07 0 -0.08 266Q 124 65.`1 317.6 1715.29 1691.61 1256.~5 -1132.47 224221.13 2247254.82 Q.37 Q -0.4 2787 127 6~ 319.1 1768.86 1806,73 1342.79 -1208.99 221146.62 2247342'.~9 1.07 -0.08 1.18 29'12 125 65,1 317,7 4821.59 1920_04 1427.53 -1284.24 221073.35 2247429.05 1.02 0.08 -1.12 3Q36 124 65 319 1873.9 2032.45 1511,54 -1"358.95 221'OOQ.59 2247514.76 0.95 -0.08 1.05 3161 125 64:9 318.7 1926.83 2145.65 1596.81 -1433.47 220928.06 2247601.72 0.23 -0.08 -0.24 3225 64 64.8 3~ 8.4 1954.03 2203.57 1640.23 -1471.82 220890.72 2247646.02 0.45 -0.16 -Q.47 3350 125 64.9 316.5 20D7,15 2316.71 1723.58 -1"548,33 220816.15 2247731.11 1.38 0.08 -1.52 3478 128 64.9 317.2 206i.45 2432.62 1$0$,15 -1627.6 220738.85 2247817.48 0.5' 0 0.55 3605 127 64.9 317.1 2115.32 2547.63 1892.46 -1705.82 220662.6 2247903.57 0.07 0 -0.08' 3731 126 64.8 315.8 2468.8T 2661.67 1975.12 -1 Z$4.4 220585:95 2247988.02 0.94 -0.08 -1.03 3$56 125 64.8 316.1 2222.1 2774.74 2056.42 -9863.04 220509.21 2248071',.91 0.22 0 0.24 3983 127 65 316.2 2275.97 2889.72 2139.35 -'1942.71 220431,47 2248155.$6 0.17 0.16 0.~8 4108 125 64.9 317.1 2328.9 3002.95 2221.7 -2020.44 220355.66 2248239.9Z 0.66 -0.Q8 0.72 4235 127 64.9 318.7 2382.77 3117.95 2307.03 -2097.55 220280'.54 2248327.05 1.14 0 1.26 4361 126 64.8 318.8 2~36.32 3231.97 2392.78 -2'172.75 220207.34 2248414.52 0.11 -0.08 0.08 4488 127 64.9 319 249~.3 3346.89 2479.~1 -2248.32 220133.79' 2248502.86 0.16 OA8 0.16 4613 125 65 317.9 2543.22 3460.1 2564.1`5 -2323.43 220060.65 224$589.32 0 8 0.08 -4.88 4740 127 64.8 318.6 2597.1 3575.1 2649.96 -2400.Q1 219986.07 2248676.86 0.52 -0.16 d.55 4865` 125 64.9 316.8 2650.22 3688.24 2733.64 -2476.16 219911.88 2248762.28 1.31 0.08 -1.44 4992 127 64.8 316.8 2704.2 3803.19 2817.44 -2554.85 219835.13 224$847..87 0.08 -0,08 0 5118 926 64;9 3'16.9 2757.75 ~917.24 ~9Q0.65 -2632.86 219759:07 2248932.$6' 0.11 Q.(}8 {3.Q8 5242 124 64_8 316.3 281`Q.45 4029.48 2982.21 -2709.9$ 219683.$5 2249016.16 4.45 -d.Q8 -0.48 5367 125 64.9 317.2 2863.57 4742.62 30fi4.62 -2787:5 21960825 224910Q.34 fl.66 0.08 0.72 5494 927 64.8 317.2 2917.54 4257.58 3148.97 -2865.61 219532,1 2249186.47 O.d8 -0.0$ 0 5620 126 64.8 317.6 2971.19 4371,59 3232.$9 -2942.78 219456.89' 2249272.15 0.29 0 ~.32 5747' 127 64.8 315.9 302~.27 44$6.49 3316.59 -3021.51 219380.11 2249357.63 1.21 0' -1.34 ~ ~~ 587~ 127 64.8 3~ 5.7 3079.34 4609.36 3398.97 -3101.63 2193Q1.92 2249441.84 ~.14 0 -~.16 6000 126 64:8 315.4 3132.99 4715,32 34$0.35 -3~81.47 219223.98 2249525.04 0.22 0 -0.24 6126 126 64:9 315.5 3186.54 4829.31 3561.63 -3261.48 219145.86 2249608.15 0.11 0.08 0.08 6254 128 6A~.9 315.3 3240:84 4945.16 3644.17 -3342.87 219066.4 2249692.53 0.14 0 -0.16 6379 125 6G~.8 315.3 3293.96 5058.23 3724.59 -3422.46 21898$.69 2249774.77 0.08 -~.Q8 0 6506 127 64.9 315.7 3347.94 5173.14 3806.59' -3503.03 218910.03 2249858.6 0.3 0.0$ 0:31 6631 125 64.8 315.1 3401.d6 5286.22 3$87.15 -3582.48 218832.46 224994Q.98 0,44 -O.Q8 -0.48 6758 127 64.9 314.6 3455.03 5401.07 396823 -3663.98 218752.85 2250023.91 0.36 O.QS -0:39 6884 126 64;8 315.3 3508,58 5515.03 4048.81 -3744.7 218674.01 2250106.32 0.51 -0.08 0.56 70'11 127 64.8 316.8 3562.66 5629.91 4131.54 -3824.~5 218596.1:9 2250190.87 1.07 0 1.18 7137 126 64.9 318.1 361621 5743.96 4215.56 -3901.58 218521.02 2250276.64 0.94 0.08 1,03 ~ 7176 39 64.8 317.6 3632.79 5779.26 4241.73 -3925.27 21849T.94 2250303.36 1.19' -0.26 -1.28 7~16 14Q 61.4 315.3 3696.12 5904_07 4332.22 -401124 21'8414.08 2250395.81 2.84 -2.43 -1.64 7379 63 59 313.3 3727.43 5958.65 4370.41 -4050.35 218375.86 2250434.88 4.7 -3.81 -3.17 7443 64 57:3 314.5 3761.21 6012.92 4408.1 -4089.52 218337.57 22b0473.46 3.1 -2.66 "i .88 7506 63 55.6 315.1 3796.02 6065.37 4445.09 -4126.78 218301.1 T 2250511,3 2.81 -2J 0.95 7569 63 53.7 315.5 3832.47 6116:72 4481.61 -4162.92 218265.88 2250548.65 3.06 -3.Q2 0,63 7634 65 51.2 316.7 3872.08 6'168.23 4598.73 -4'198.66 218231.01 2250586.58 4.12 -3.85 1.85 7696 62 48.8 317.9 3911.93 6215.72 4553.63 -4230.87 218199.6'1 2250622.21 4.15 -3.8T 1.94 7757 61 47.1 31$.2 3952.79 $261.01 4587.31 -4261.15 218170.12 2250656.59 2.81 -2.79 0,49 78'18 61 45 318.7 3995.12' 6304.92 4620.18 -4290.28 218141.76 2250690.91 3.49 -3.44 0.82 7881 63 42.8 317.4 404~:51 6348.6 4652.67 -4319.47 218113.32 225Q723.27 3.77 -3.49 -2.06 7946 65 40.8 314.5 4088.97 6391.9 4683.81 -4349.57 21$083,95 2250755.1 4.28 -3.08 -4.46 8011 65 38,5 314.4 4139.02 6433.32 4712.86 -4379.18 218~55.02 2250784,82 3.54 -3.54 -0.95 $073 62 37.1 314.2 41$8.01 6471.26 4739:4 -4~406.37 218028.45 2250811.98 227 -226 -0.32 8137 fa4 34.6 315.9 4239.88 6508.71 476~.91 -4432.86 218002.58 2250839.09 4.2' -3.91 2.66 89 99 62' 32.6 31$.7 4291.52 6543.01 4791.1 -4~456.14 217979.89 2250864.81 4.08 -3.23 4.52 8263 64 30 318.8 4346.2' 6576.25 4816.1 -4478.Q6 217958.55 2250890.31 4.06 -4.06 0.16 ~ 8326 63 27.8 319.4 4401.35 66Q6.68 4839.1 -4498 217339.15 2250913.77 3.52 -3.49 t1.95 8389 63 25.8 320.2 4457.58 663v.05 4860.79` -4516.34 217921.31 2250935.87 3.23 -3.9 7 1.27 8453 64 23.2 319.2 4515.81 6661.57 48$1.04 -4533.49 2179Q4.63 2250956,51 4.11 -4.06' -1.56 8514 6h 20.6 31$.6 4~72.41 6684.31 4898.19 -454$.44 217890.U$ 225Q974 4.28 -4.26 -0.98 8578 64 18.8 319 4632.66 6705:$8 4914,42 -4562.65 217876.24 2250g90.55 2.82' -2.$1 0.62 $641 63 16.9 31$.1 4692.62 6725.1$ 4928.9 -4575,43 217863.8 2251005'.32 3.05 -3.02 -1.43 8704 63 14.6 317.5 4753.25 6742.~8 4941.57` -45$6,91 217852.62 2251418.25 3.66 -3.65 -0:95 8766 62 13.~ 319.4 A~813.42 6757.22 4952.75 -~596.83 217842.96 2251029.6fi 2.22 2.1 3_06 8$26 60 11.5 319.3 4872.02 6770.1 4962.~2 -4605.23 217834.79 2251039.62 3 -3 -0:17 8891 65 9.3 317.4 4935.95 6781.83 4971.3 -4613.01 217827:22 Z25104$.58 3;43 -3.38 -2.92' 8955 64 7.4 316:1 4999.27 6791.12 4978.08 -4619.37 217821.02 2251055.5 2.98 -2.97 -2.03 9020 65 4.9 31;3.3 5063.$9 6798.07 4983 -4~624.29 217816.21 2251060.53 3.87 -3.8~ -4.31 9081 61 2.4 311.6 5124.76 6801.94 49$5.63 -~627.14 217813.42 2251063,23 4.1 -4.1 2.79' 9144 63 1 319.9 5187.73 6803.81 4986.93 -4628.48 217812.11 2251064.56 2.25 -2.22 13.'17 9263 119 0.8 330.5 5306.72 6805.65 4988.45 -4629.56 217811.06 2251066.1 0.22 -0.17 8.91 9393 130 1.8 358.1 5436.68 6808.08 4991`28 -463~.d7 2178'10.62 2251068,94 0.89 0.77 21.23 9520 127 1.3 350_5 5563.64 6890',8 4994.69 -4630.38 217810.39 2251072'.36 0.42 -0.39 -5.98 9647 127 1.4 6i7 5690.6 6813.0'1 4997.65 -4630.43 217810.4 2251075,33 0.31 0.08 12.76 9774 127 1.7 9,5 5$17.56 8815.18 5001.05 -4fi29.94 217810.97 2251078.71 0.24 0,24 2.2 9899 125 1.8 6.7 5942.5 6817.6 5004.83 -4629.4"1 21 fi811.59 2251082.4$ 0.11 0.08 -2.24 ~ 10024 125 2.2 10.9 6067.42 6820.3 5009,14 -4628.72 217812.35 2251086.77 0.34 0.32 3,36 10150 126 1.7 279.9 6193.37 6823.22 5011.83 -4630.11 217811.05 2251089.49 2.22 -0.4 -72.22 10276 126 1.4 282.5 6319.33 6825.97 50'12.49 -4633.45 217807.73 2251090.23 O.Z4 -0:24 2.06 10403 12? 1.? 239.8 6446.28 6827.65 5011.88 -4636.6 213804.57 2251089.69 0.92 0.24 -33.62 1~528 125 1.1 297.6 6571.25 6829.18 5011.5 -4639.26 217801.9 225'I089.37 1,16 -0.48 46.24 10653 125 0.3 204 6696.24 6830'.18 501"1,76 -4640.46 217$00.71 2251089.66 0.9~ -0.64 -74.88 10777 124 0.5 299:3 6820.24 6$30.56 5011.72 -4649.06 217800.1 2251089.64 0.49` 0,16 76.$5 10903 126 0.2 312.4 6946.24 6831.31 5012.14 -4641.7 2'17799.47 2251090.07 0.24 -0.24 1A.4 11030 127 0.3 140 7073.24 6831.19 5012.04 -4641.65 217799.52 2251 D89.96 0.39 Q.08 -135.75 11155 125 0.3 41.3 7198.24 6830:9 5012.03 -464123 217799.94 2251089.95 ~.36 0 -78.96 11280 125 1.4 92.7 7323.22 6829.$5 5012.2 -4639.49 217801.69 2251090.08 0,99 0.88 41.12 11402 'I 22 1.2 107.2 7445.19 6$27.68 5011 J6 -4636.78 217804:39 2251089.57 0.31 -0.16 11.89 'i 1525 123 2 95.8 7568.14 &824.96 5011.16 -4633.41 217807.74 2251088.9 0.7 0.65 -9.27 11651 126 1.5 127.5 7694.09 6821.69 5009.93 -4629.92 217811.2 2251087.59 0.85 -0;4 2~.16' '['E776 125 2.7 109.6 7819 6817.4~ 5007.95 -4625.84 217815.23 2251085.51 1,08 0.96 -14.32 11901 125 3.6 94.1 7943.81 6812.01 5006.68 -4619.16 217821.$9 2251084.09 0.99 ~.72 -12.4 11962 61 3.6 94,1 8004.69 6809.22 5006.41 -4615.33 2178~5.7 2251083.73 0 0 D • HOLE AND ~ASING SECTIQNS Refi Weilbore: NS#3 Ref Wellpath: NaviTrak<0-1640'>ATK G3<1650 - 7176'~NaviTrak <339 6 -11962'> String/Diameter Start MD End MD Interval 5tart TVD End TVD Start NIS End N/S 5tart EN1l End E/W feet feet feet feet feet 12.25in Open Hole 0 1640 1640 0 1284.19 0 0 565.58 -51$.65 8.5in C}pen Hole 0 7243 7243 0 3662.17 0 0 4285.81 -3966,28 7in Open Hoie 0 1~t962 1'1962 0 8004:69 0 U 5006.4~ -4615.33 2Qin Gonductor 0 89 &9 0 8~' 0 0 -0.03 ~.22: 9.625in Casing Surface 0 1635 1F35 0 1282.02 0 0 562.23 -515:64 Tin Casing Intermediate 0 7238 7238 ~ 3659.92 0 0 428~.57 -3963'.21 W'ELLPATH CQMPOSITtON Ref Wellbore: NS#3 Ref 11Veffpath: NaviTrak<0-1640'~ATK G3<1650 - 7176'~NaviTrak <7316 - 11962'> Log Name/Comment Start MD End MD Pos Unc Model feet` #eet NauiTrak MUVD <0-1640`> ATK G3 MWD <1650 - 5620'> ATK G3 MWD<5747 - 7243'> NaviTrak<7316 -8749'> NaviTrak<8704 - 9144`> NaviTrak MWD<9263 - 11962'> 0' 1583 ~faviTrak (Magcorrl) 1583' S620 AutoTrak G3 (SAG) 5620 7176 AutoTrak G3 (SAG) 79 76 8641 NaviTrak (Magcorr1) 8641 9144 NaviTrak (Magcorr1 } 9'144 11962 NaviTrak (Magcorr1) ~ ~ ~ Ala'ska Asset Team i~ ~,_ ~~~ United States Production Operations ,~~~ ~' ~ a ~ i ,~~~ •~.~,„ ' Marathon ~ Oil Company p.°. B°X 3' 2$ MARATHON _S ~ =; ~ ; -~;1; Houston, TX 77253 ~-~'~' Telephone 713-296-3597 , ~ .~ p~+y Fax 713-235-6322 .''~'3s,.9 ~li ~ ~w~~~.a 9l ..~~..~.'J1~ii{+9~:3~`ve~., $ ^~.i1 ~ ' August 30, 2007 FedEx Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7`~' Avenue, Suite 100 Ancharage, AK 99501 RE: Marathon Ninilchik State #3 (NS 3) - API 50-133-20566-00 ~07 ~ ~~~ Marathon Kenai Beluga Unit 41-7X (KBU 41-7X) - 50-133-20510-00 CONFIDENTIAL Dear Mr. Okland: Enclosed are one hard copy each of the following logs. NS 3 Dual Radial Cement Bone Gamma Ray/CCL Log KBU 41-7X Gamma Ray/CCL Log Please indicate your receipt of this data by signing below and returning one copy to my attention at the letterhead address or fax to 713-235-6322. Thank you, ~1~~ ~ Courtney McElmoyl Enclosures ~J Ma~"~hOt7 MARATHON ~I~ ~6iI~~~~~ August 23, 2007 Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7`~' Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon Ninilchik State #3 (NS 3) - API 50-133-20566-00 CONFIDENTIAL Dear Mr. Okland: Ala~ Asset Team United States Production Operations P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3597 Fax 713-235-6322 Hand Delivery Enclosed is one CD containing confidential digital well data for the above referenced well, as described on the attached CD Contents document. Please indicate your receipt of this data by signing below and returning one copy to my attention at the letterhead address or fax to 713-235-6322. Thank you, C~ ~~s~~9~~ Courtney McElmoyl ~ Received by: c7a''~' - 01 `t~ ~~ ~ ~ ~ ~~~: ~ t53.3~ Date: ~ ~~~ > 13 .~ 9 'i ~ ~ =~ r: ~ ~Ct'07 ;~;~~ % ;~ ? Enclosures ~, ~ ~a,`F .~ ~. ' ~ ~~ ~ d'g?~. f.~ve t ~i (';{~~~~j? ~:?Gf sc, i ~~~ ~ ~ ~~~ ~~ 301 East 92"d Ave, Suite 2 ANCHORAGE, AK 99515 907-561-2465 SAMPLE MANIFEST: MARATHON OIL COMPANY NS3: BOXED WASHED AND DRIED SAMPLES TOTAL: 30 BOXES: 3 SETS OF 10 BOXES ~perater: MARATHOlV OIt~ COMPANY Weil Name: Ninilchik State #3 Field: Ninilchik Unit (Tyonek Pool} County: Kenai Peninsula Borough State: Alaska Company Representatives: John Nicholson Mike Feketi Rowland Lawson Dan Byrd LoCati0tl: 858' FNL 1072' FEL, Sec 34 T1N R13W SM, X=222324.310, Y=2245972.310 Classification: Single Zone Development Gas ARI #: 50 -133 - 20566 - 00 Permit #: 207 - 01 S Activity Code: WBS # DD.06.14458.CAP.DRL, DD.06.14458.CAP.CMP Rig Name / Type: Glacier #1 / Land / Double Total Depth 11962' Total Depth Formation: Tyonek __ Total Depth Date: March 20, 2007 EPOCH Logging Geologists: Craig Silva, John Lundy, Mike Krahmer EPOCH Sample Catchers: Larry Resch, Larry Turner ~1'~--,t ~..c?t37 Set T e and Pu ose Interval Fre uenc Distribution Marathon Oil Comaanv Go C& M Storage, Inc. 20' 3311 S U.S. Highway 77 q Washed and Dried 1660' -11962' Intervals Schulenburg, TX 78956 Attn: Dave Martens 713 296 3302 AOGCC Alaska Oil and Gas Conservation 20' Commission g Washed and Dried ~660' -11962' Int~rvals 333 W. 7t" Aye., Su~te 1A0 Anchorage, AK 99501 Attn: Howard Oakland CHEVRON Alaska 909 West 9th Avenue ~ Washed and Dried 1660' -11962' Intervals Anchorage AK 99501 Attn: Debra Oudean 907 276-7600 SEQUENTtAL BOX INTERVALS : 10 TOTAL: 1660' - 2700', 2700' - 3700', 3700' - 4700', 4700' - 5700', 5700' - 6700', 6700' - 7700', 7700' - 8700', 8700' - 9700', 9700' -10800', 10800' -1962' TD. v1,01- C~~g STATE OF ALASKA ~vosioa OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: ~~~ ~~G~~ :"~a~t~:i:~.stut~.~~.i~~ u~~~; ;a_E~{~,o~ ~~:~~~~:~;n.~t~:~.~~.~;s ~~I~ ::e~ken~,~°:r~~~3a~r~:i:~.s~~t~.~~.t€~~ Contractar: Inlet Driliing Rig No.: GD1 DATE; 3/22/2007 Rig Rep,: George Brewster Rig Phone: 394-1321 Rig Fax: 283-1313 Operator:-Marathon Oi{ Co. Op. Phone; 283-1312 Op. Fax: Rep.: Rowland Lawson Field/Unit & Well No.: Ninilchik State #3 PTD # 207-018 Operation: Drlg: X Workover: Test: Vnitiai: Weekty: Test Pressure: Rams: 250/3000 Annular: TEST DATA MISC. INSPECTIONS: Test Result Test Result Location Gen.: P Well Sign P Housekeeping: P Drl. Rig P PTD On Location P Hazard Sec. P Standing Order Posted P BOP STACK: Quantity Size Test Result Annular Preventer 1 13 5/8" NT Pipe Rams 1 2 7/8"x5 1/2" P Lower Pipe Rams 1 4° `NT Blind Rams 1 13 5/8" NT Choke Ln. Valves 1 3 1%8" NT HCR Valves 4 3 1/8" P Kill Line Valves 2 2 1/16" P Check Valve 1 2 1/16" NT MUD SYSTEM: Visual Test Alarm Test Trip Tank NT NT Pit Level Indicators NT NT Flow Indicator NT NT Meth Gas Detector NT NT H2S Gas Detector NT NT Test Results Explor.: Bi-Weekly x Valves: FLOOR SAFETY VALVES: Quantity Test Resu Upper Kelly 1 NT Lower Kelly 1 NT Ball Type 1 P Inside BOP 1 NT CHOKE MANIFOLD: Quantity Test Result ~' No. Valves 12 NT Manual Chokes 1 NT Hydraulic Chokes 1 NT ACCUMULATOR SYSTEM: Time/Pressure Test Result System Pressure NT Pressure After Closure NT 200 psi Attained NT Full Pressure Attained NT Blind Switch Covers: All stations NT Nitgn. Bottles (avg): Number of Failures: 0 Test Time: 1.5 Hours Components tested 4 Repair or replacement of equipment will be made within N/A days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Superviser at: ~~~ ~~~~,~~:y~a~r~:i~.s~Ut~.a~.i~~~ Remarks: Shell test with VBR rams on 4", kill line valve, HCR, floor valve All tested qood. Full test waved Jim Reqq 24 HOUR NOTICE GIVEN YES X NO Date 03/22/07 Time 10:00 Test start 0800 am Finish 1600 pm BOP Test (for rigs) BFL 11/09/04 Waived By Jim Witness BOP Inlet GD1 3222007.x1s Requested 10-401 Delivery Address Tom, As you and I spoke about yesterday evening, it would be Marathon's preference to have all 10-401 applications sent to the Anchorage office after approval. I know that Ken Walsh has spoken to you about the other filings that are being done by production in Kenai and giving you a single point of contact on their paper work. I will make sure that future 10-401's have the operator's address stated as Anchorage. Just a point of completeness, here is the address and phone numbers in Anchorage: Marathon Oil Company 3201 C. Street, Suite 800 Anchorage, AK 99503-3934 Pete Berga - 907-565-3032 Alyson Zellner - 907-565-3033 Betty Veldhuis - 907-565-3070 Thanks, Will Tank 1 of 1 2/1/2007 9:37 AM ~ ~ ~ i d ~ ~ b ~ SARAH PAUN, CaOVERNOR ~L[~5~~ ~uj ~D ~5 333 W. 7th AVENUE, SUITE 100 CO1~T5ERQA7'IO1~T COrIIHISSI011T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Willard 3. Tank Advanced Senior Drilling Engineer Mazathon Oil Company 3201 C Street, Suite 800 Anchorage, AK 99503-3934 Re: Ninilchik Field, Tyonek Undefined Gas Pool, Ninilchik State #3 Marathon Oil Company Permit No: 207-0 l 8 Surface Location: 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. Bottomhole Location: 4,238' FSL, 3,625' FEL, Sec. 28, 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 fhe 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 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). DATED this ~ day of February, 2007 cc: Departrnent of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. ~ ~ Marathon MARATHON Oil Company January 29, 2007 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 #3 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 development well. If you require further information, I can be reached at 713-296-3273 or by e-mail at wjtank@marathonoil.com. Sincerely, ~ti~ ~ ~ Willard J. Tank Advanced Senior Drilling Engineer Enclosures G~~"' STATE OF ALASKA ~'~~ ~~~~l~~~ ALA~IL AND GAS CONSERVATION COMN~ON PERMIT TO DRILL ~~3~~AN 3 0 2007 20 AAC 25.005 ' ' ' 1 a. Type of Work: Drill Q Redrill ~ Re-entry ~ 1 b. Current Well Class: Exploratory ~ Stratigraphic Test ~ Service ~ Multiple Zone ~ Development Oil ~ Development Gas Q Single Zone Q 1 c. Specify if well is propose for ^~ Coalbed Methane ~~n~~~a~s~Flydrates ~ 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 #3 3. Address: P.O. Box 3128, Houston, TX 77253 6. Proposed Depth: ~~ MD: 1, 34 ~ TVD: , 04 12. Field/Pool(s): Ninilchik Unit 4a. Location of Weil (Governmental Section): Surface: 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. 7. Property Designation: ~ ADL 389180 Tyonek Pool ~ Top of Productive Horizon: 3,460' FSL, 2,908' FEL, Sea 28, T1 N, R13W, S.M.~ 8. Land Use Permit: 13. Approximate Spud Date: February 9, 2007 ~ Total Depth: 4,238' FSL, 3,625' FEL, Sec. 28, T1 N, R13W, S.M. ~ 9. Acres in Property: 4,607 ~ 14. Distance to Nearest Property: 3,624 ft(ADL 384305) 4b. Location of Well (State Base Plane Coordinates): Surface:x - 222,324.310 y- 2,245,972.310 Zone - 4 10. KB Elevation (Height above GL): (21' AGL) 169 feet 15. Distance to Nearest Well Within Pool: 2,522 ft to GO #3 BHL 16. Deviated wells: Kickoff depth: 200 feet Maximum Hole Angle: 65 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 3,860 Surface: 2,059 '~t~3 S°'S~' 18. Casing Program: Specifications To p - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD ND (including stage data) Driven 20" 133 L-80 PE 4&' 0' 0' 67' 67' 12 1/4" 9 5/8" 40 L-80 BTC 1,624' 0' 0' 1,645' 1,300' 375 sacks 8 1/2" 7" 26 L-80 BTC 7,229' 0' 0' 7,250' 3,669' 495 sacks 7" 4 1/2" 12.6 L-80 Hydril 563 5,007' 7,050' _ 3,584'~ 12,057' 8,069'i 336 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Volume MD ND ConductodStructural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee Q BOP Sketch Q Drilling Program Q 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 January 29, 2007 Commission Use Only Permit to Drill Number: 0?0~7~~J~ API Number: 50- f,~,~-~OS~-~O•~4 Permit Approval h~ Date: Q` ~~~~ 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: 1[~] Other. Samples req'd: Yes~ No^ Mud log req'd: Yes~ No~ '7jOQ~ ~~~ ~Qp .~.~~~ HZS measures: Yes^ No~] Directional svy req'd: Yes[~ No^ APPROVED BY THE COMMISSION DATE: Q~~ ~D , COMMISSIONER ,~~< Form 10-401 Revised 12/2005 Q R ~ ~ ~~~~ ~-- Submit in Duplicate Ninilchik State #3 ~ ~ Drilling Program Marathon Oil Company Northern Business Unit / ` MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Ninilchik State #3 Originator: Will Tank ' ~ Reviewed by: Pete Berga January 29, 2007 Date Date Brian Roy Date 1/29/2007 CONFIDENTIAL MATERIAL Page 1 of 19 Ninilchik State #3 ~ Driliing 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 General 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 Summary .............................................................. ...................................................... 14 4.15 Drilling Fluid Program Summary ............................................................. ...................................................... 15 4.16 Drilling Fluid Specifications ..................................................................... ...................................................... 15 4.17 Solids Control Equipment ........................................................................ ...................................................... 16 4.18 Cement Program Summary .................................................................... ...................................................... 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 1~29~2007 CONFIDENTIAL MATERIAL Page 2 of 19 Ninilchik State #3 • ~ Drilling Program Marathon Oil Company Northern Business Unit Attachments Grou Attachment Attached Commercial Information AFE Da s/Cost vs. De th Curoes X Pro'ect Ob'ectives and Scorecard RSO Codin Information X Re uisitions Vendor List Bonus Pro ram Drillin Contract Re ulato / HES Information Emer enc Evacuation Plan X H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations Risk Anal sis Miscellaneous Pro rams endors Bit Pro osal X Cement Pro osal X Directional Plan X Fluids Pro ram X Wellhead E ui ment - Descri tion/Drawin s Drill Strin and BHA Summa Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets X Offset Data Pro osed Formation Pore Pressure, Mud Wt & Fracture Gradient X Tem erature Curves Geolo ic Structure Ma s Geolo ic Cross Section Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee in Anal sis - Moorin /DP n/a Stress Check Casin Desi n File X Maximum Allowable Over ull Miscellaneous Information Wellbore Dia ram n/a Ri Elevations X Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document Detailed Casin S ecifications X Detailed Drill Pi e S ecifications 1/29/200~ CONFIDENTIAL MATERIAL Page 3 of 19 Ninilchik State #3 Drilling Program ~ s Marathon Oil Company Northern Business Unit 1. Emerqencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°08'20.813"N Longitude - 151 °31'24.067"W From the Kenai airport, go 0.5 mile South on Willow Street. Turn East on Main Street Loop, go 0.3 miles. Continue East on 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 Riq 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 Emerpencv 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 Emeraencv 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 Comments: 1/29/2007 CONFIDENTIAL MATERIAL Page 4 of 19 Ninilchik State #3 . ~ Driliing 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 Driiling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Scott Szalkowski Geologist 713-296-3390 713-301-9834 Clyde Scott Reservoir Engineer 713-296-2336 Jim Thompson Completion Engineer 713-296-2730 713-232-9347 713-513-6019 John Nicholson Drilling Supervisor 907-283-1312 907394-2641 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Mike Feketi Drilling Supervisor 907-283-1312 907-394-2641 907-283-1373 Rowland Lawson Drilling Supervisor 907-283-1312 907-394-0953 907-283-1313 2. Requlatorv Aqencv Contacts 2.1.1. Internal Reaulatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Re ulato Permits 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Requlatorv Contact Contact Title O~ce Phone Facsimile 24 hr Eme en Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Reaulatorv Compliance Regulation Requirement 20 AAC 25.035 e 10 A BOP testing interval requirement is now 14 days. 20 AAC 25.035 e 10 F Requirement for a 24 hour notice to AOGCC prior to BOP test. Comments 1/29/2007 CONFIDENTIAL MATERIAL Page 5 of 19 Ninilchik State #3 ~ Drilling Program ~ Marathon Oil Company Northern Business Unit 4. Drillinq Proqram Summarv 4.1 General Well Data Well Name Ni~ilchik State #3 Lease / License Surface Location 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. WBS Code DD.06.74458.CAP.DRL Slot/Pad Ninilchik State Pad Field Ninilchik Unit Spud Date 2/09/07 (est.) KB (above MSL) 169' County/Province Kenai Peninsula API No. GL (above MSL) 148' State / Country Alaska Permit No. Perm. Datum KB Total MD 12,057' Well Class Development Water Depth N/A Total ND 8,069' Rig Contractor Glacier Drilling Water Protection Depth Rig Name Glacier Rig 1 Best Practices: Comments: 4.2 Workinq Interest Owners Information Com an Workin Interest Address Phone Facsimile Marathon 60% P•O.Box196168 g07-561-5317 907-565-3076 Anchora e, AK 99519-6168 Chevron - Texaco 40% 4.3 Geoloqic Proaram Summarv Surface Location Coordinates From Lease/Blodc Lines 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. Latitude 60° 08' 20.813" N Longitude 151 ° 31' 24.067" W UTM North (1~ 2,245,972.310' UTM East (x) 222,324.310' Tolerance Pore Pore MD - RKB ND - RKB Pressure Pressure Possible Formation (ft) (ft) (psi) (ppg) Lithology Fluid Content Tyonek (Primary Target) 7,250 3,669 9•20 Sandstone Gas 1/29/2007 CONFIDENTIAL MATERIAL Page 6 of 19 Ninilchik State #3 • • Marathon Oil Company Drilling Program Northern Business Unit Depth (KB) Horizontal Displacement (ft) Target MD (ft) ND (ft) Location +N/~ (Y) +E/_W (X) Tolerance (ft) Tyonek T-1 7,250 3,669 3,460' FSL, 2,908' FEL, Sec. 28, T1 N, R13W, S.M. 4,318 -3,980 Circie 250' radius Tyonek T-2 8,095 4,199 3,938' FSL, 3,349' FEL, Sec. 28, T1 N, R13W, S.M. 4,796 -4,421 Circle 250' radius Tyonek T-3 9,807 5,819 4,238' FSL, 3,625' FEL, Sec. 28, T1N, R13W, S.M. 5,096 -4,697 Circle 250' radius TD 12,057 8,069 4,238' FSL, 3,625' FEL, Sec. 28, T1N, R13W, S.M. 5,096 -4,697 Circle 250' radius 4.4 Summarv of Potential Drillina Hazards Hazard Event ~~ ~ B Discussion Precautions p 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 8~ 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 H2S is anticipated. Gas sands will be encountered from +/- 7,250' MD (3,669' ND) 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: 1 Comments: 4.5 Formation Evaluation Summarv Interval LWD Electric Logs Mud Logs Surface None None None 0' - 1,645' MD Intermediate None Reeves Quad Combo. Pull GR-Neutron to Basic with GCA, shale density, temperature in and 1,645' - 7,250' MD surface inside casing. out, sample collection (10' samples). Production None Reeves Quad Combo, MFT, Formation 7,250' - 12,057' MD Imager. Pull GR-Neutron to tie into Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Intermediate run. Completion N/A GR, CCL, CBL N/A Comments: ~/29/2007 CONFIDENTIAL MATERIAL Page 7 of 20 Ninilchik State #3 ~ • Marathon Oil Company Drilling Program Northern Business Unit 4.6 Drillinq Propram Summarv Drive Pipe: N/A 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 Comments: Surface: Drill 12-1/4" hole to +/- 1,645' set 9-5/8" casing. 1. Drill a 12 1/4" hole to 1,645' MD (1,300' 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 250/2,500 psi. 6. Set wear bushing. Test surface casing to 2,500 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. Comments: Intermediate: Drill 8-1/2" hole to +/- 7,250' set 7" casing. 1. PU 8 1/2" PDC bit and directional BHA. Drill out float equipment and 20' of new formation. CBU. 2. Test shoe to leak off. Estimated EMW is 18.7 ppg. 3. Drill 8 1/2" directional hole to 7,250' MD (3,669' 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 2,500 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 250/2,500 psi. 9. Set wear bushing. Test intermediate casing to 2,500 psi. Best Practices: 1 Pre-heat mud mix water to help in early shaker screen blinding issues with the mud. Comments: Production Liner: Drill 7" hole to +/- 12,057' 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. 1/29~2007 CONFIDENTIAL MATERIAL Page 8 of 19 Ninilchik State #3 Drilling Program C~ ! Marathon Oil Company Northern Business Unit 2. Test shoe to leak off. Estimated EMW 16.8 ppg. 3. Drill a 7" hole to an anticipated TD of 12,057' MD (8,069' ND) 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 on drill pipe. Place cementing tool (DV tool) in the liner string so that it will be at approximately 9,857' MD (5,869' ND). Run liner to TD. On bottom reciprocate and rotate liner while circulating the hole. 8. RU cementing company. Cement 15` Stage of 4 1/2" while reciprocating and rotating pipe. Drop wiper plug and bump plug to pressure up set the liner hanger (liner top at approx. 7,050' MD (3,584' TVD)) and then open the 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. Circulate hole clean. If cement circulates, TOOH. If cement doesn't circulate, WOC, then prepare and pump liner top job. 10. Once cement is either circulated or the liner top is squeezed, 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. Polish 4 1/2" liner seal bore. 11. Run 4 1/2" liner hanger packer with hydraulic pusher tool. Stab into polish bore receptacle and set packer. TOOH laying down drill pipe. 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 In order to fully utilize one 6" x 7" RWD system, BOP testing should occur prior to drilling the production section if there is any chance it will be needed during this hole section. 2 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. 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 Comments: 1~29/2007 CONFIDENTIAL MATERIAL Page 9 of 19 Ninilchik State #3 ~ Drilling Program • Marathon Oil Company Northern Business Unit 4.7 Casinq Proqram Summarv MD (ft) Connection A PI Ratings Casing Size (in) op ottom Weight (Ibs/ft) ID (in) Drift (in) rade ype O. D. (in) Makeup Torque (ft-Ibs) Hole Size (in) m ~- d Q_ 0 8 V ~ o y ~ Y ~ 9 5/8 0 1,645 40 8.835 8.679 L-80 BTC 10.625 N/A' 12 1/4 5,750 3,090 979 7 0 7,250 26 6.276 6.151 L-80 BTC 7.656 N/A" 81/2 7,240 5,410 667 41/2 7,050 12,057 12.60 3.958 3.833 L-80 Hydril563 5.2 10,080 7 8,430 7,500 288 Best Practices: 3 Have float equipment made up at Tubescope's yard prior to bringing casing to location. Buck on all equipment to the pin end and not make up to box below, due to rig height restrictions. 4 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. Comments: 4.8 Casinq Desiqn Casing Shoe Safety Factors Setting Maximum Casing Depth Mud Wt Frac. Form Surface ~ a C o Size Weight ND When Set Grad Press Pressure ~ `6 ~~ (in) (Ib/ft) Grade (ft) (Ib/gal) (Ib/gal) (Ib/gal) (psi) m U i 9 5/8 40 L-80 1,300 9.4 18.7 8.5 804 2.23 4.87 3.57 7 26 L-80 3,669 9.8 16.8 8.5 2,059 2.56 2.90 2.58 41/2 12.60 L-80 8,069 9.8 16.8 9.2 2,059 1.10 1.82 1.90 4.9 Calculation of Maximum Anticipated Pressures (MAWP and MASP- Setting Casing Depth . Size ND MAWP * MASP ** Mud/Gas (in) (ft) (psi) (psi) Percentage 9 5/8 1,300 3,964 804 30/70 7 3,669 4,992 2,059 30/70 4 1/2 8,069 4,992 2,059 30/70 " MAWP = Maximum allowable working pressure *" MASP = Maximum anticipated surface pressure The calculation method for MASPBHP has been modi~ed from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig superviso~ well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 1/29/200~ CONFIDENTIAL MATERIAL Page 10 of 19 Ninilchik State #3 ~ • Marathon Oil Company Drilling Program Northern Business Unit Surface casing: 9 5/8" (1.645' MD. 1.300' TVDZ MASPf~a~ _((Fracture gradient at shoe) x.052 x TVDsnae) - Hydrostatic pressure of gas column at the shoe. MASPf~e~ _(18.7 ppg x.052 x 1,300') -(0.1 psi/ft x 1,300') MASPf,~ = 1,264 psi - 130 psi MASPtrac = 1,134 psi. MASPb,,P = BHPoPe,,,,a,e,d - Hydrostatic pressure of mud portion - Hydrostatic pressure of gas portion MASPbnP =(8.5 ppg x.052 x 3,669') )-(0.3 x 9.8 ppg x.052 x 3,669') -(0.7 x 0.1 psi/ft x 3,669') MASPbnP = 1,622 psi - 561 psi - 257 psi MASPbnp = 804 psi MASP = MASPbnP = 804 psi MAWP =(0.7 x Casing Burst) -(Mud Wt. - Backup Fluid Wt.) x.052 x TVD MAWP =(0.7 x 5,750) -(9.4 - 8.5) x.052 x 1,300' MAWP = 4,025 psi - 61 psi = 3,964 psi Intermediate casing: 7" (7.250' MD. 3.669' TVD) MASPf~a~ _((Fracture gradient at shoe) x.052 x NDsnoe) - Hydrostatic pressure of gas column at the shoe. MASPfrac =(16.8 ppg x.052 X 3,669') -(0.1 psl/it x 3,669') MASPfrac = 3,205 psi - 367 psi MASPfrac = 2,838 psl. MASPbnp = BHPaPe„ no~e cd - Hydrostatic pressure of a gas column MASPbnP =(9.2 ppg x.052 x 8,069') -(0.3 x 9.8 ppg x.052 x 8,069') -(0.7 x 0.1 psi/ft x 8,069') MASPbnp = 3,860 psi -1,236 psi - 565 psi ~ ~ ` es~ ~ ~ ~ MASPbnP = 2,059 psi 3Q~?j ~g°~ ~ MASP = MASPbnP = 2,059 psi /" v/'~\/ 3~ MAWP =(0.7 x Casing Burst) -(Mud Wt. - Backup Fluid Wt.) x.052 x TVD MAWP =(0.7 x 7,240) -(9.8 - 9.4) x.052 x 3,669' MAWP = 5,068 psi - 76 psi = 4,992 psi Production liner: 4 1/2" (Toq - 7.050' MD. 3,584' TVD) (Bottom - 12 057' MD 8 069' TVD) MASP = MASP~• = 2,059 psi MAWP = MAWP~~ = 4,992 psi Best Practices: 1 Comments: 1/29/2007 CONFIDENTIAL MATERIAL Page 11 of 19 Ninilchik State #3 Driiling Program • ~ Marathon Oi! Company Northern Business Unit 4.10 Casinq Test Pressure Calculations 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 Comments: 4.11 Blowout Prevention Eauipment. Testinq and General Procedures BOP PROGR AM Casing Test Test Casing Test Fluid Pressure Size MAWP MASP Press Density BOPS lowlHigh Casing (in) (psi) (psi) ~psi) (Ib/gal) S+ze & Rating (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 9 5/8 3,964 804 2,500 9.4 (1) 13 5/8" 5M blind ram 250/2,500 (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 4,992 2,059 2,500 9.8 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/S" 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 4,992 2,059 2,500 9.8 (1) 13 5/8" 5M blind ram 250/2,500 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets (1) 13-5/8" 5M pipe ram Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottom and pipe rams in the top, 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. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.11.1. Function Testina Function Regularly. 1/29l2007 CONFIDENTIAL MATERIAL Page 12 of 19 Ninilchik State #3 Drilling Program 4.11.2. Pressure Testinq • ~ Marathon Oil Company Northern Business Unit 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 Comments: 4.12 Wellhead Eauipment Summarv 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 Comments: Use a drilling spacer spool on the 9-5/8" casing head to allow for a B-Section contingency. 4.13 Directional Propram Summarv Build Tum Coordinates Sec. No. Descrip6on MD (ft) ND (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (de9) Azimuth (de9) +N!-S (ft) +E/_W (ft) VS (~) 1 Tie On 0 0 0 0 0 0 317.337 0 0 0 2 KOP 200.00 200.00 0 0 0 0 317.331 0 0 0 3 Build up Section 5.00 0 5.00 317.331 4 End of Build 1,500.00 1,238.55 5.00 0 5.00 65.000 317.331 486.49 -448.42 661.63 5 Hold Section 0 0 0 65.000 317.331 6 End of Hold 7,200.00 3,647.48 0 0 0 65.000 317.331 4,284.94 -3,949.69 5,827.58 7 Drop Section -3.00 0 3.00 317.331 8 End of Drop 9,366.66 5,378.40 -3.00 0 3.00 0.00 317.331 5,095.75 -4,697.06 6,930.30 9 TD 12,057.26 8,069.00 0 0 0 0.00 317.331 5,095.75 -4,697.06 6,930.30 1/29/2007 CONFIDENTIAL MATERIAL Page 13 of 19 Ninilchik State #3 • Drilling Program • Marathon Oil Company Northern Business Unit 0 5000 1000 2000 c 4000 p c 3000 ~ N Q 000 ~3000 + ~ ~ ~ v 5000 Z ~ ^2000 ~ t ~ 6000 - ~ ~ F 7000 1000 8000 0 0 10 00 20 00 30 00 4000 5000 60 00 70 00 -40 00 -30 00 -2000 -10 00 0 V ertical Sectio n at 317.33° (2500 ft/in ) West( -)/East(+) (1500 ~n) Comments: Vertical section calculated from a reference azimuth of 317.33° taken from surface location to bottom hole location. Potential Well Interference: Well Distance (ft) Depth (MD) NS #1 119.43 Surface NS #2 137.15 234.53 No serious interference exists. See attached directional plan and anticollision analysis for more details. Best Practices: 1 ~, 95/S' N S #3 Tyo nek T1 ' ~ 7 ~ NS #3 Tyonek T2 I , ~ ___ ' NS #3 Tyonek T7 0 ~ I NS #3 Tyonek ' - N S #3 Tyo I ~ nek T90- - N S #3 Tyo nekTD'" --- , 4 12" Comments: 4.14 Directional Survevinp Summarv Interval MD (ft) MWD Survey Magnetic Multishot Gyro Multishot Other Survey Tool Remarks Surface 0 - 1,645' X Intermediate 1,645' - 7,250' X Production 7,250' - 12,057' X Best Practices: 1 Comments: a- -- ; ,'i --_ , ,~-:~ '~ - .. -,, _ '' NS #3 Tyonek T -- -- I -;NS#3TyonekT9 _'- _,_„ ~ - _ NS #3 Tyonek T3 ~-_„~ , ~ NS #3 Tyonek T1 ``~'~__ _' ~ , ~'~., NS#3TyonekT2 ~~,,~ ! NS #3 Tyonek T1 1/29/200~ CONFIDENTIAL MATERIAL Page 14 of 19 Ninilchik State #3 Drilling Program ~ • Marathon Oil Company Northern Business Unit 4.15 Drillinq Fiuid Proqram Summarv Interva l - ND Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite 0 1,300 8.6 - 9.4 Gel / Gelex Spud Mud Gel, Gelex, Soda Ash, Caustic, Barite, Polypac Supreme UL, Sodium Meta Bisulfate Flo-Vis, PolyPac Supreme UL, KCI, SafeCarb 10 1,300 3,669 9.4 - 10.0 6% Flo-Pro w/ Safecarb & 40, Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex, Klagard Flo-Vis, DualFlo, KCI, Greencide 25G, SafeCarb 3,669 8,069 9.6 -10.2 6% Flo-Pro w/ Safecarb 10, Asphasol Supreme, Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Klagard, Lubetex Best Practices: 1 Comments: 4.16 Drillinq Fluid Specifications Interval - ND LSRV Drill From (ft) To (ft) Density (Ib/gal) Vis (seclqt) 1 min (Ib.l100ft~) PV (cP) YP (Ib/100 ft ) Fluid Loss (cc) pH Solids (°/a) 0 1,300 8.6-9.4 50-75 N/A 25-35 NC-12 +l-9.5 <7 1,300 3,669 9.4 - 10.0 20 - 30,000 8- 12 7- 9 +/- 9.5 +/- 7.5 3,669 8,069 9.6 - 10.2 20 - 30,000 10 - 14 5- 7 +/- g.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. Comments: See mud prognosis for details. Sized CaC03 (SafeCarb) will be used to control leakoff. 1/29/2007 CONFIDENTIAL MATERIAL Page 15 of 19 Ninilchik State #3 • • Marathon Oil Company Drilling Program Northern Business Unit 4.17 Solids Control Equipment ` ~ ~ o ~ ~ °~ N d R C ~ ~ C m V . -O ~ Q/ V ! ~ ~ f// ~ N ~ v1 ~ . Y m m m 'm ~ c ~ ~ ° InteNal ~n ~ Q ~ U U U N COmmentS 0- 12,057' 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: Comments: 1/29/2007 CONFIDENTIAL MATERIAL Page 16 of 19 Ninilchik State #3 Drilling Program L J • Marathon Oil Company Northern Business Unit 4.18 Cement Propram Summarv De pth Gauge Top of Cement Gauge Ann Vol Slurry Casing Size (~n) MD (~) TVD (~) Hole Size (~n) MD (~) TVD (~) Ann Vol To TOC (~3) With OH Excess (~3) Density Lead/Tail (pP9) Open Hole F~ccess (%) Thickening Time (hrS) 20 120 120 Driven N/A 95/8 1,645 1,300 121/4 0 0 515 919 12.0 75 8 7 7,250 3,669 8 1/2 1,550 1,260 724 1,017 12.5 / 15.8 40 8 4 1/2 12,057 8,069 7 7,050 3,584 776 1,005 10.5 / 10.5 30 N/A Mix Water Compressive Casing Size Density Qty Yield Slurry Vol TOC MD Qty WL FW Strength ~PS~) (in) Slurry Cement Description (Ib/gal) (sx) ft3/sx) (ft3) (ft) (gal/sx) Type (cc) (%) 8 hr 24 hr 9 5/8 Tail Type I Cement 12.0 375 2.45 919 0 10.20 Fresh 547 0 183 675 7 Lead Class"G" 12.5 336 2.47 831 1,550 13.78 Fresh 559 0 92 645 Tail Class "G" 15.8 159 1.17 186 6,250 4.99 Fresh 40 0 428 3,437 4 1/2 2"a Stage Class "G" 10.5 185 2.99 553 7,Q5Q 12.36 Fresh 20 0 50 1,755 1~`Stage Class"G" 10.5 151 2.99 452 9,857 12.36 Fresh 20 0 50 1,755 Best Practices: 1 Pump several fiuid calipers at TD to help with the hole volume determination from the open hole caliper log. 2 A KCL spacer wili 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 vafve (DV tool) will be piaced in the casing string at approximately 9,857' MD (5,869' TVD). Note the small cement excess on the production hole. This is to ensure that hydrostatic pressure stays below expected frac gradients. Comments: See cement prognosis for details and spacer specifications. 4.19 Requlatorv Waivers and Special Procedures Regulation Deviation Comments: 1/29~2007 CONFIDENTIAL MATERIAL Page 17 of 19 Ninilchik State #3 • • Marathon Oil Company Drilling Program Northern Business Unit 4.20 Bit Summarv 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 1,645 12 1/4 Christensen MXL-1 117 20 - 50 80 - 300 1,645 7,250 8 1/2 Christensen HCM605 M223 Up to 25 Motor 7,250 12,057 4 3/4 Christensen DOSRWD46.000 M233 3- 5 100 - 350 Best Practices: 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 Hvdraulics Summarv Qty Make Model Liner ID (in) Stroke (in) Max Press c@ 90% WP (psi) Displacement @ 95°~ Vol. eff (gal/stroke) Max Rate @ 95% Vol. eff (spm/gpm) Hole Sections Used 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 Openhole Nozzle AP 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) 0- 1,645 12 1/4 627 1,650 122 9.4 3- 18's Actual Data from NS #2 (@ 1,650' MD) 1-16 1,645 - 7,250 8 1/2 550 2,450 284 9.8 5- 15's Actual Data from NS #2 (@ 5,942' MD) 7,250 - 12,057 6 x 7 250 2,250 185 9.8 4- 12's Actual Data from IVS #2 (@ 11,115' MD) Best Practices: 1 Comments: Hydraulics for surface and intermediate hole sections were calculated using 5" drill pipe, production hole is calculated using 4" drill pipe. See mud program (Virtual Hydraulics) for additional information. 1/29/2007 CONFIDENTIAL MATERIAL Page 18 of 19 Ninilchik State #3 • ~ Marathon Oil Company Drilling Program Northern Business Unit 4.22 Formation Inteqritv 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 (LOl) 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 1J2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Best Practices: 1 Comments: 1/29/200~ CONFIDENTIAL MATERIAL Page 19 of 19 • Marathon Oil ~ Well Ninilchik State #3 Diverter 21 1/4" 2M Diverter ~ '~Cnife Valve Diverter Spool • Marathon Oil ~ Well Ninilchik State #3 BOP Stack Flow Nipple Flow Line 13 5/8" 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 3 1/8" 5M Manually Operated Valves Operated Valve ~ ~ ~ ~LW-F-LLJLJ~~ WJ Kill Choke L1~~J~LJL4~-I-J--~1J 13 5/8" 5M Cross ~ ~ 3 1/8" 5M Hydraulically Pipe Ram Operated Valve 13 5/8" 5M Single Ram Preventer 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 ~11"5Mx135/8"5MDSA • Marathon Oil • Well Ninilchik State #3 Choke Manifold To Gas Buster To Blooey Line Bleed off Line to Shakers x x x oo~ oo~ oo~ x x x x L~~LJLU-~ `°~ LI-~~L1 X ~ ~ 3" 5M Valves X I ~ 2 9/16" 10M Swaco 3 1/8" 5M Manually Hydraulically Operated Adjustable Choke Choke From BOP Stack ~ ~ Surface Use Plan for Ninilchik Unit - Ninilchik State #3 Surface location: 858' FNL, 1,072' FWL, Sec. 34, T1N, R13W, S.M. 1) Existing Roads The Sterling Highway will be used for access to the Ninilchik State #3 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 #3. 3) Location of existing wells Well Ninilchik State #3 will be drilled on Ninilchik State pad. A pad drawing is enclosed that shows the proposed location of Ninilchik State #3. 4) Location of existing and/or proposed facilities A flowline will be installed from the Ninilchik State #3 wellhead to an existing heater and separator. 5) Location of Water Supply A water supply well exists on the pad that Ninilchik State #3 will be drilled from. 6) Construction Materials No construction is planned on the pad. 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 8~ 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 surtace Ninilchik State #3 will be drilled from an existing pad. Reclamation of the pad, if required by the landowner, wifl occur after the abandonment of Ninilchik State #3 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: f 2 y ~ ~ Name and Title: .~~~~ Willard J. Tank, dvanced Senior Drilling Engineer Marathon Oil Company P. O. Box 3128 Houston, TX 77253 (713)296-3277 28 27 33 34 I? ~ Z O I-= U W ~ SECTION LINE NOTE: SECTION LINES NOT TO SCALE STATE PAD NO. 3 WELL ASBUILT LOCATION ASP ZONE 4 NAD27 ~ GRID N:2245972.310 Z GRID E:222324.310 LATITUDE:60°08'20.813""N Z LONGITUDE: 151°31'24.067"W _ LL NOTES 1. BASIS OF COORDINATES IS KEN1 CORS STATION, NAD27 ALASKA STATE PIANE ZONE 4, 2. BASIS OF VERTICAL CONTROI IS NGS BENCH MARK MONUMENT V 82, ELEVATION = 289.42 FEET (NGVD 88). ~ f SCALE 0 60 120 N ORTH FEET i-J[ ~l~['iiZON PRQIECT REVISION: 1 DATE: 11/07/OB ~~ ~~~Y NINILCHIK, STATE PAD NO. 3 DRAWNBV: MSM ~"~ , ,~~y~p~~ ASBUILTLOCATION DIAGRAM SCALE: 7"=60' PR0.IECT NO. 0830! ENGINEERING / MAPPING / SURVEVING / TESTING BOOK NO. 06-26 COfISUILI119IfIC, p,O.BOX48850LDOTWI,AK99889 LOCATION SHEET McLane VOICE: (90~283-0218 FA%: (8W)28}~ S34 T1N R13W SEWARD MERIDIAN, ALASKA '~ oF • EMAIL: SAMCLANE~MCLANECG.CAM TOPO! map prirlL~d on il/21/06 from "Marathon Ninilchik St~#3.tpo" 151°35.000' W 151°33.000' W 151°31.000' W 151°29.000' W WG584 151°27.000' W z +'./' z ° f .'' . / _ o °o ~; ~ -- - - . o r ~ o ' ~ . ~/ :~ ~ «~ o ~ . -.~ C. _ ~ ~ ,~ ,~ _ - '~ ~'~13 r- .4a. j ' ,. ~ •' f ~ x1~J ,i .~`~~4 ' Gt`~Y.= ;' i 4 z -__ ~oMe = • _. - - z o :r~y~ - o 0 0 r" . "- o ~ ~ Nniikh~k ik~rt, G. OskolkadPad '~ ° ~ ~ o I ~ ' 1' ~Z~ I ~~ 24. f , ~ _ ~O ,. /, • ~y, r F Crook Inlet : ~ ~ ~« ~,, {,- , _ - _ __ ~~~.~' ..~ i . . Y3d6r_ t~ '~. /~ _ ~.... ~. _^ ---~ _~__ O ~ •~ ~• ~ ~ ~ . _ O O ., ~ ~ I .' " . O 01 • . ~ )~150 ~ __- ~.~ ~ O~ O ~ f w_ ~ r •.~S ~ y.. ~ 7.~ o ~ G~a i V~t ~ ! ~'~? ' "~ --~` ~ - __ ~ ~j _,~ , ~~ _~ , Nuulcl~il: St~re P~d. NS a3 (Pro~ee~ Loc ~aon- ~ , ' : - - ~ - _~ -~' =`'--1 ~. ---- ;~+ ~ ,'" i ':._~ , -- ~'~uo' h - ; Z ~. r.G.sre1P! I ~~1~~ ~ ~~ ~~ ~ ~ '_ Z o ~ ~ iaa.a • ' ~ ~ ~ -.~ I` ~ o ~ ~ . 34 ~ ~ ~ ;, 1 ~ / '~~ °o o . , __-_ . _ ° 3~ _ . t ~_ - `~ ~ _ o 0 o ,; -.~ - - ' ~ i i` o ~ ' ~ I..--:.--.... _ ~'` ~ • ~ ~ ~dASE _LI46 -"' ~` ~ !. T1N,R13W ~ • - - ~ ---- - -.--_-'.'-+i~:..L~_ }') { T1S,R13W r • ~ ' ~ = ,y, .. ~ ~ ,% , ~ - . • ~ ' `'~~~ . ~ ~ ~~' ~~ ~ I Z ~ ~ ~ ~ ~. '~~-t,~, ~ . Z o •- az . 5 I 4 : I 3 ~ 3 _,. ' ~,i ~ i O o .~ •i ~ _ i . .,~ ~ e ,' ~ !,~ ~ rr~~ ~ o :~ GPk~~ v"O `_ ti " ,i" ~ };' ~' ~ ~ o ` ~. p Nu~ilcluk Uttrt, S1uan Diauvie Pad ~ ~K° , ~~ ~ ', J.__,,` ' ~ . ~ ~ • r °o 1 = J' ~ ~O ~p ... .c, . M.P.178.6 ~--- - --~-~-` , == -- ~ ~---'_ -~r.: . //,,- - ~ ` ~ , j ' ; ~.`j !' , ,~-~/ Y . . ~ r I r ,~ j t--------~~.~ -~~J i- ~~ _- - - ~ Z -~~: ~ , 8 , 9 ~, ~a ~ ..i;-°l~ ~`~- .. ~--, _ - {,`"~( o ~ I' ' ~ - ' I ) ~ - %~,:, / i'1 Z o ~i~ ' ~ ~-'r' 1 HY;'.~ j ~ V ...~ f~ o ~ 2 ~ . ~ ~ ~l . s ` ~ .~ - ~- o r. ~, ~ F ~ ~"~' ~ o a . . ~ -. o - - + . - i - ~ - -- - - - _ -- - -- -~ i - - - - - ~~ .~--~ >.,. _ o ~ ~ ~"-,~ t ~ - i_ ~'_ ~,t~ T`~'f ~" -- ~ j ' . ~U'" ,, - ~ . '~~ I "~ . ut ~ ,•,~~I ~ f ~~~ ~„_ _ , t ~ ~ ~ ~ ~ f ; -.. j_ \ l *.' . .. -. ~ + - ~ ' ! ~~l 'J' S~3'~~ . 13 j 1 £~ ~ ~ ~ 17 ~ ] ~ ; ~ i? 15 ~`~y ~ . ~_ ' 14 ~.. _. ~ , , ~ . i a J Map created w th T(~Q c02006 Nationaf Geographic ~~+A-5 uad ~', - ~' ~. Kenai A-4 uad ~ ~ 151°35.000' W 151°33.000' W 151°31.000' W 151°29.000' W WGS84 151°27.000' W TN MN NATIONAL o.o 0.5 ~.o ~.5 miles ~9~~z~ GEOGRAPHIC ~ " " ' ' ' ' " ' ' 0.0 0.5 1.0 1.5 2.0 2.5 km 11/21/06 Northern Ninilchik Area, AK 1 mile GLACIER DRILLING RIG #1 MUD PITS AND PUMP ROOM LAYOUT ~ r~ U ~ MARATHON • • MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot'. Slot #3 Field~. Ninilchik Field V~,~ell: NS #3 ~~ ~~ BAKER NYGI~is INTEQ Wiell Profile Data a ~camm.n~ Mo I n ~oc ai n ~.ie n ~0 ois -naon TaOn 0.00 o000 371331 OOO ~ ~ 000 0.00 0.00 KOP 200.00 0000 317331 ]00.00 0.00 000 0.00 000 EnEOfBUIW 150000 65.00p 317331 1I39.55 188.<9 -4AB.Oi 5.00 %163 FDro ]200.00 65000 317331 361].48 C2B/41 ~390.9.69 O.OU SB2]SB EMOm 936666 O.WO 317]31 5~]BAO SOBS.]5 <89"l.OB 30p 6930.30 TD 1105776 0.000 317.337 8088.00 5p%,]5 269108 000 69J0.30 ~ t a a~ 0 m u r N ~ ~ 7 ~ Vertical Section (ft) s°•",~^~^_,~°°^ Azimuth 317.33° with reference 0.00 N, 0.00 E from wellhead • . ARATHON Oil Compa ~,,,~ M Lxation Cook Inlet, Alaska (Kenai Penninsula) Slot Slot #3 BAKER Field: Ninilchik Field Well: NS #3 NY6His IIAARATHON iNTEQ Ta ets N.bll Profile Data M Comrtwnl MD Inc • Az ' rvU ^ Local N II oul E 11 L OL8 '/10p2 V9 II iaon 0.00 0.000 377.331 O.OD O.OU 0.00 0.00 000 NOP 200.00 0.000 317.371 M0.00 0.00 O.OU 0.00 0.00 EndafOun 150000 65000 3113J1 11JB55 CBfi.C9 -«B.<Z_ 5.00 %163 9eg~O~op ]200CU , t'i;! . i . , . .. , s59 . 000 582)SB , ~~xf ~~op , . . _ , i . •..-. . . ._ .. 3 00 6930 JO TD 11Lb~ h 000 693030 ioo ,~M~='-4500 -aooo Easting (ft) m N a o sao iooo~ ssao 5000 4500 4000 3500 3000 Z 0 ~ 2500 ~ ~ ~ 2000 1600 1000 500 0 Slot #3 ~00 MARATHON Planned Wellpath Report NS #3 Version #1 Page 1 of 7 ri.~ BAKER M~161~IES INTEQ . . . , . '! Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ., , ~ Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location -850.48 1080.27 222324.31 2245972.31 60 08 20.813N 151 31 24.067W ' Facility Reference Pt 221264.03 2246847.56 60 08 29.190N I51 31 45.399W Field Reference Pt 226657.85 2252005.12 60 09 21.189N 151 30 01.220W 1 Calculation method Minimum curvature _, Glacier #1 (RKB) to Facility Vertical Datum 169.00 feet _ _ "Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 169.00 feet `• Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft ' Field Vertical Reference Mean Sea Level Section Azimuth 317.33° MARATHON Planned Wellpath Report NS #3 Version #1 Page 2 of 7 ri.~ BAKER I~IY61~1 ES INTEQ . . Operator ~. ~ ~ MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ELLPATH DATA (125 s tations) j~ = interpolated /extrapolated station MD feet Inclination [o] Azimuth (°] TVD [feet] Vert Sect feet] North [feet East [feet] Grid East [us survey feet Grid North [us survey feet DLS [°/100ft] Build Itate [°/100ft) Turn Rat [°/100ft] 0.00 0.000 317.331 0.00 0.00 0.00 0.00 222324.31 224597231 0.00 0.00 0.00 100.00 j' 0.000 0.000 100.00 0.00 0.00 0.00 222324.31 224597231 0.00 0.00 0.00 200.00 0.000 317331 200.00 0.00 0.00 0.00 222324.31 224597231 0.00 0.00 0.00 300.00~' ~.000 317.331 299.87 436 3.21 -2.96 222321.43 22459'75.58 5.00 5.00 0.00 400.OOj' 10.000 317.331 398.99 17.41 12.80 -11.80 ~ 222312.81 2245985.38 I 5.00 ~ 5.00 0.00 500.00~' 15.000 317.331 496.58 39.05 28.71 -26.46 222298.52 2246001.62 5.00 5.00 0.00 600.00~' 20.000 317.331 591.93 69.11 50.81 -46.84 222278.66 2246024.19 5.00 5.00 0.00 700.OOt 25.000 317.331 684.28 10736 78.94 -72.77 222253.38 2246052.91 5.00 5.00 0.00 800.00~' 30.000 317.331 772.96 153.52 112.88 -104.05 222222.89 2246087.56 5.00 5.00 0.00 900.OOj' 35.000 317.331 857.27 207.24 15238 -140.46 i 222187.41 2246127.88 5.00 5.00 0.00 1000.00j' 40.000 317.331 936.58 268.09 197.13 -181.70 222147.20 2246173.57 5.00 5.00 0.00 1100.00~' 45.000 317.331 ]010.28 335.63 246.78 -227.48 222102.59 2246224.27 ~.00 5.00 0.00 1200.OOj' S0.000 317331 1077.82 409.34 300.98 -277.43 222053.90 2246279.60 5.00 5.00 0.00 1300.OOf 55.000 317.331 1138.68 488.65 359.29 -331.18 222001.50 2246339.14 5.00 5.00 0.00' x~ ' ' 60.000 ~~<'7.331 1192.39 572.96 421.29 -388.33 221945.81 2246402.43 5.00 5.00 0.00 1500.00 65.000 317331 1238.55 661.63 486.49 -448.42 221887.23 2246469.00 5.00 5.00 0. 1500.OOj' 65.000 317.331 1238.55 661.63 486.49 -448.43 221887.23 2246469.00 0.00 0.00 0. 1600.OOj' 65.000 317.331 1280.81 752.26 553.13 -509.85 22182736 2246537.04 0.00 0.00 0.00 1700.00~' 65.000 317.331 1323.08 842.89 619.77 -571.28 221767.48 2246605.07 0.00 0.00 0.00 ~~. 1800.U4'(' -;;~, : 65.000 ~~I7.331 1365.34 933.52 686.41 .` ` -632.70 ' 221707.61 2246673.11 0.00 0.00 0.00 1900.00~' 65.000 317.331 1407.60 1024.15 753.05 -694.13 221647.74 2246741.15 0.00 0.00 0.00 2000.00~' 65.000 317.331 1449.86 1114.78 819.69 -755.55 221587.87 2246809.19 0.00 0.00 0.00 2100.00~' 65.000 317.331 1492.12 1205.42 886.32 -816.98 221528.00 2246877.22 0.00 0.00 0.00 2200.00~' 65.000 317.331 1534.39 1296.05 952.96 -878.40 221468.12 2246945.26 0.00 0.00 0.00 2300.OOfi% 65.000 317.331 1576.65 , 1386.68 1019.60 -939.83 221408.25 2247013.30 0.00 0.00 0.00 / MARATHON Planned Wellpath Report NS #3 Version #1 Page 3 of 7 ri~~ BAKER NI~GNES INTEQ . . Operator ,. ~ ~ MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State WELLPATH DATA (125 stations) j~ = interpolated/extrapolated station MD feet] Indination ° Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East feet Grid East (us survey feet] Grid North [us surve feet] DLS [°/100ft Build Rate (°/100ft] Turn Rat [°/100ft] 2400.OOj' 65.000 317.331 1618.91 147731 1086.24 -1001.26 221348.38 2247081.33 0.00 0.00 0.00 2500.OOi' 65.000 317.331 1661.17 1567.94 1152.88 -1062.68 221288.51 2247149.37 0.00 0.00 0.00 2600.OOfi 65.000 31'7.331 1703.43 1658.57 1219.52 -1124.11 221228.64 2247217.41 0.00 0.00 0.00 2700.OOt 65.000 317.331 1745.70 1749.20 1286.16 -1185.53 221168.76 2247285.45 0.00 0.00 O.OOi -~ 2800.OOt~ 65.000 317331 1787.96 ' 1839.83 1352.80 -1246.96 221108.89 ! 2247353.48 0.00 O.OOj 0.00~ 2900.OOt 65.000 317.331 1830.22 1930.46 1419.44 -1308.38 221049.02 2247421.52 0.00 0.00 0.00 3000.00~' 65.000 317.331 1872.48 2021.09 1486.08 -1369.81 220989.15 2247489.56 0.00 0.00 0.00 3100.OOt 65.000 317.331 1914.74 2111.72 1552.72 -1431.24 220929.28 2247557.59 0.00 0.00 0.00 3200.001' 65.000 317.331 1957.00 2202.35 1619.3~ -1492.6~ 220869.40 ~ 224762~.63 0.00 0.00, O.OOj 3300.00~'~ 65.000' 317.331 199927 ; 2292.98 1686.00 ___ -1554.09 i 220809.53 2247693.67 ~ 0.00 0 00 0.00, 3400.00~' 65.000 317.331 2041.53 2383.61 1752.64 -1615.51 ' 220749.66 2247761.71 0.00 0.00~ 0.00 ; 3500.00~' 65.000 317.331 2083.79 2474.25 1819.28 -1676.94 220689.79 2247829.74 0.00 0.00' 0.00 3600.OOj' 65.000 317.331 2126.05 2564.88 1885.92 -1738.36 220629.92 2247897.78 0.00 0.00 0.00 3700.001' 65.000 317.331 2168.31 2655.51 1952.56 -1799.79 220570.04 2247965.82 0.00 0.00 0.00 ~ ` ~ ~ ~~ ~, ;65.~1p0 ~ ~ ~~ 317.331 2210.5~v ~ ~~~ 2~~~ ~ _ ~419.~Q~ ' ~ -1861.21 _ ~. ~ ` "' . " X `' ~ '~' ~~2~~33.85 - - -a 0.00~ ------- ~~ ~~~~ U.bt~~! - =~~'~~~~.{~~~~ 3900.OOj' 65.000 317.331 - 2252.84 2836.7'7 _ _ 2085.84 -1922.64 ` 220450.30 2248101.89 0.00 0.00 0 4000.00~' 65.000 317.331 229510 2927.40 2152.48 -1984.07 220390.43 2248169.93 0.00 0.00 0. 4100.00~' 65.000 317331 233736 3018.03 2219.11 -2045.49 220330.56 2248237.97 0.00 0.00 0.00 4200.00~' 65.000 317.331 2379.62 3108.66 2285.75 -2106.92 220270.68 2248306.00 0.00 0.00 0.00 ~5.000 317.331 ~ ~ 2421.89 ~ ~ ~'~199.23 . ~, ~~,, ~~ :° _2168.34 220210.81 `~~ ~ ~ ~~ ~ ~248374.04 0.00 ~ ~~U.00 ~~ ~ O.UO 4400.OOj' 65.000 317.331 2464.15 3289.92 2419.03 -2229.77 220150.94 2248442.08 0.00 0.00 0.00 4500.00~' 65.000 317.331 2506.41 3380.55 2485.67 -2291.19 220091.07 2248510.11 0.00 0.00 0.00 4600.00~' 65.000 317.331 2548.67 3471.18 2552.31 -2352.62 220031.20 2248578.15 0.00 0.00 0.00 4700.001~ 65.000 317.331 2590.93 3561.81 2618.95 -2414.05 219971.32 2248646.19 0.00 0.00 0.00 4800.Q0~ ~' 65.000 317.331 2633.20 3652.45 ~~ 2685.59 -2475.47 219911.45 2248714.22 0.00 0.00 4.00 MARATHON Planned Wellpath Report NS #3 Version #1 Page 4 of 7 ri~~ BAKEit I~IY61~IE5 INTEQ . . ~ ~ Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State WELLPATH DATA (125 stations) j~ = interpolated/extrapolated station MD [feet] Inclination [°] Azimuth [°] TVD [feet] Vert Sect [feet] North [feet] East [feet] Grid East [us survey feet Grid North [us survey feet] DLS [°/100ft] Build Rate °/100ft] Turn Rate [°/100ft] 4900.00~' 65.000 317.331 2675.46 3743.08 2752.23 -2536.90 219851.58 2248782.26 0.00 0.00 0.00 5000.00# 65.000 317331 2717.72 3833.71 2818.87 -2598.32 219791.71 2248850.30 0.00 0.00 0.00 5100.00~' 65.000 317.331 2759.98 I 392434 2885.51 -2659.75 219731.84 , 2248918.34 0.00 0.00 0.00 5200.OOt 65.000 317.331 2802.24 I 4014.97 2952.1~ ~ -2721.17 219671.97 J 2248986.37 0.00 0.00 0.00, 5300.OOj~ 65.000 317.331 2844.50 ! 4105.60 j 3018.79 ; -2782.60 219612.09 i 2249054.41 0.00 O.OOi 0.00 ~400.001' 65.000 317.331 2886.77 4196.23 v 3085.43 -2844.02 2195~2.22 ~ 2249122.45 0.00 0.00 0.00 5500.00~' 65.000 317.331 2929.03 ~ 4286.86 3152.07 -290~.45 219492.35 2249190.48 0.00 0.00 0.00 5600.001' 65.000 317.331 2971.29 4377.49 3218.71 -2966.88 219432.48 2249258.52 0.00 0.00 0.00 ~700.OOt 65.000 317.331 3013.~5 4468.12 _ 3285.3~ -302830I 219372.61 2249326.56 0.00 0.00 0.00 '' S800.00~' 65.000 317.331; 3055.81 ; 4558.75 ` 3351 99 -3089.73 ' 219312.73 ~ 2249394.60 00 0 0.00 0.00 5900.OOt 65.000 317.331 3098.08 4649.38 3418.63 -3151.15 219252.86 2249462.63 0.00 0.00 0.00 6000.OOt 65.000 317.331 3140.34 4740A1 3485.26 -3212.58 219192.99 2249530.67 0.00 0.00 0.00 6100.OOf 65.000 317.331 3182.60 4830.64 3551.90 -3274.00 219133.12 2249598.71 0.00 0.00 0.00 6200.OOj' 65.000 317.331 3224.86 4921.28 3618.54 - -3335.43 219073.25 2249666.74 0.00 0.00 0.00 „ 6300,,„ . ..F~ ; 65.000 ~;~;~ ~ ~ -. ; ~~ ~ 5011.91 _ 3685.18 , - __ -3396.86 219013.37 - - - 2249734:781 0.00 0:00 ~~~! , 6400.00~' 65.000 -- 317.331 3309.39 _. 5102.54 -- _ 3751 82~ -- 3458.28 - -- --- - 218953.50 2249802.82 0.00 0.00 0 6500.00~' 65.000 317.331 3351.65 5193.17 3818.46 _- 3519.71 - 218893.63 2249870.86 _ 0.00 ~ 0.00 0. 6600.00~' 65.000 317331 3393.91 5283.80 3885.10 -3581.13 218833.76 2249938.89 0.00 0.00 0.00 6700.00~' 65.000 317.331 3436.17 5374.43 3951.74 -3642.56 218773.89 2250006.93 0.00 0.00 0.00 ~ - ~ 9;',:~- 65.Q00 ~~ ~ ~3478.43 :.':~b5. , a~ ~~` ~A~018.38 -- - -3703~.4&` ~ 218714 ~~;' ~ ~ _ ~ °~ _ : > .97. : O.QA ~ ~ 0.00 r ~~ . 6900.00~' 65.000 317.331 3520.69 5555.69 4085.02 -3765.41 218654.14 2250143.00 0.00 0.00 0.00 7000.00-~ 65.000 317.331 3562.96 5646.32 4151.66 -3826.84 218594.27 2250211.04 0.00 0.00 0.00 7100.00~' 65.000 317331 3605.22 5736.95 4218.30 -3888.26 218534.40 2250279.08 0.00 0.00 0.00 7200.00 65.000 317.331 3647.48 ~ 5827.58 ~ 4284.94 -3949.69 218474.53 ~ 2250347.11 0.00 0.00 0.00 27 00 00 65.000 317.331 3647.48 5827.58 4284.94 -3949.69 218474.53 2250347.12 3.00 -3.00 0.00 WELLPATH DATA (125 stations) ~= interpolated/extrapolated station MD [feet] Inclination [°] Azimuth [°] TVD feet Vert Sect [feet] North [feet] East [feet] Grid East [us survey feet] Grid North (us survey feet] DLS °/100ft] Build Rate (°/100ft] Turn Rate (°/100ft] 7300.00~' 62.000 317331 3692.10 5917.07 4350.73 -401033 218415.41 2250414.29 3.00 -3.00 0.00 7400.00~' S9.000 317.331 3741.33 6004.09 4414.72 -4069.32 218357.92 2250479.62 3.00 -3.00 0.00 7500.00~' S6.000 317.331 3795.06 6088.42 4476.73 -4126.47 218302.21 2250542.93 3.00 -3.00 0.00 7600.OOt 53.000 317.331 3853.12 6169.82 ~ 4~36.58 -4181.64 218248.44 22~0604.04 3.00 -3.00 0.00 7700.OOt 50.000 317.331 3915.36 ~ 6248.08 ; 4594.12 -4234.68 218196.74 i 2250662J8 3.00 -3.00 0.00 7800.OOt 47.000 317.331 3981.62 6322.96 4649.18 -4285.43 218147.27 2250719.00 3.00 -3.00 0.00; 7900.00~' 44.000 317.331 4051.70 6394.28 4701.62 -4333.77 218100.16 22~0772.54 3.00 -3.00 0.00 8000.001' 41.000 317.331 4125.42 6461.83 4751.29 -4379.55 218055.53 2250823.25 3.00 -3.00 0.00 8100.001' 38.000 317.331 4202.~8 6525.43 4798.06 -4422.66 218013.52 22~0870.99 3.00 -3.00 0.00 8200.00#( 35.000 317.331 4282.95 ~ 6584.91 4841.79 -4462.97 217974.23 j 2250915.64 3.00 -3.00 ~-~~';~~ ~_,. 8300.OOt 32.000 317.331 4366.33 6640.09 ; 4882.37 -4500.37 217937.77 2250957.07 3.00 -3.00 0.00 8400.00~' 29.000 317.331 4452.48 6690.84 4919.68 -4534.77 217904.25 2250995.17 3.00 -3.00 0.00 8500.00~' 26.000 317331 4541.18 6737.01 4953.63 -4566.06 217873.75 2251029.83 3.00 -3.00 0.00 8600.00~' 23.000 317.331 4632.16 6778.48 4984.12 -4594.16 217846.35 2251060.96 3.00 -3.00 0.00 .., $Z~O. ' , 2U.000 ~:. 317331 ; ~„ . ~~Q ~~;.`_;~815.12 5011.06 _ -4619.00 ~~.'~~~~°~~ ~~ .; 2251088.47 _ _ 3.00 -3.~ . . ~, ,'- Q:~ 8800.001' 17.000 317.331 4820.01 6846.85 ._ 5034.39 _._ ___... -4640.50 ~ 217801.19 2251112.28 ___..______ _.____._ 3.00 -- - -3.00 --.------ 0 8900.OOj' 14.000 - 317.331 4916.37 ---- 6873.57 . 5054.04 -4658.61 ___ _..._..~ 217783.53 2251132.34 3.00 -3.00 0. 9000.00~' 11.000 -- 317.331 5013.98 6895.21 5069.95 -4673.28 217769.24 2251148.59 3.00 -3.00 0.00 9100.00 j' 8.000 317.331 5112.60 6911.71 5082.08 -4684.46 21775833 2251160.98 3.00 -3.00 0.00 . ~, ~,~ `~ . ~ ~ ~~ • ~-~~',..r;;~.. .~•9~0 ~ 317.331 ~11.9~ ~ ~ ,;~t ,.. .~ u. ~~~0.41 -.. -~ 4692.13 ~ 2~77~4:~ ~ ~ ,.~u. ~225~..~,. ~~ ~ .~; ` `~3.00 , ~ -s~« , . ~ :,QO ~;~:~ 9300.OOj' 2.000 317.331 5311.75 6929.14 5094.89 ~ 4696.27 217746 83 2251174.06 3.00 ~ 3.00 0.00 9366.66 0.000 317.331 5378.40 6930.30 5095J~ ~ -4697.06 217746.06 2251174.93 3.00 -3.00 0.00 9400.00~' 0.000 0.000 5411 J4 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 9500.00~' 0.000 0.000 5511.74 6930.30 5095.75 -4697.06 217746.06 22~1174.93 0.00 0.00 _ 0.00 j,~ 9600.00'~ 0.000 ; 0.000 5611.T4 ' 6930.3Q ^ 5095J5 -4697.06 217~46.06 2251174.93 0.00 0.00 1 0.00 Planned Wellpath Report BAKER ~ NS #3 Version #1 NVGMES MARATHON Page 5 of 7 INTEQ MARATHON Planned Wellpath Report NS #3 Version #1 Page 6 of 7 ri~~ BAKER 1~1~161~IES INTEQ o ~ Operator _ _ _ _ _ __ . _ . _ 1 , , ~ ~ ~~~ ...:~ .. . . . .... .:...... .__....._~~__.... .__ _. .__... . . ~:...._ ._.._. ... _. ._.., . ~,... . . ..... .. _._:.... ,....:..._:.a.:_.._._-_ ".__... .. MARATHON Oil Company Slot ';Slot #3 - -__~_~____...~__-~------ -- w _._.__ _..____---- -_ _--- - Area - ----- Cook Inlet, Alaska (Kenai Penninsula) °Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ELLPATH D ATA (125 stations) j~ = interpolated/extrapolated station MD feet] Inclination [°] Azimut6 [°] TVD [feet] Vert Sect feet] North [feet] East [feet] Grid East [us survey feet] Grid North [us survey feet] DLS [°/100ft] Build Rate (°/100ft] Turn Rate [°/100ft] 9700.OOj' 0.000 0.000 5711.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 9800.00~' 0.000 0.000 5811.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 9900.00~' 0.000 0.000 59ll.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 10000.00~' 0.000 0.000 6011.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 1O100.00fi 0.000 0.000 6111.74 ~, 6930.30 5095.75 -4697.061 217746.06 2251174.93 0.00 , 0.00 0.00 10200.00~' 0.000 0.000 6211.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 10300.00~' 0.000 0.000 6311.74 6930.30 ~095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 10400.00~' 0.000 0.000 6411.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 ] 0500.00 0.000 0.000 6511.74 6930.30 ~ 509~.75 4697.06 ' 217746.06 225117493 , 0.00 0.00 0.00 --- 10600.001' -- _ 0.000 ---- O.OOU 66kt,74- __ ----- 6930.30 i - ------ 5095.75 ._. -_- --- -4697.06 __ __ ----- 217746.06 _. _____ _______ 2251174.93 _ _ _ ~ 0.00 0.00 0.00 10700.00 fi 0.000 0.000 6711.74 6930.30 - 5095.75 -4697.06 ! , 217746.06 _ _ _ 2251174.93 -- 0.00 0.00 0.00; 10800.00 fi 0.000 0.000 6811.74 6930.30 ' S095.75 -4697.06 217746.06 _ 2251174.93 0.00 ~ 0.00 ~0.00 10900.00~' 0.000 0.000 6911.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 11000.OOj' 0.000 0.000 7011.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 111,Qf~: ' ~~ 0:000 0.000 7111.74 6930.30 ; 5095.75 -4697.06 217746.06 2251174.93 ~ 0.00 ! 0.00 0.00 11200.00~' 0.000 0.000 7211.74 6930.30 ~095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0 11300.OOfi 0.000 0.000 7311.74 6930.30 5095.75 -4697.06 217746.06 4 2251174.93 0.00 0.00 0. ll400.00j' 0.000 0.000 7411.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 11500.OOj' 0.000 0.000 7511.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 ~•~Y~ J h,. ,~ a '. ti~,. : ' °". ; $}~ 3.~Myiz`, ~ ~'~,, ~ N~ y~(~ /~ UT~c.k,"Y,~;~. C ,3~.~'~. AG~t~+~ ~`!'V7f. ~f~,tLl~ 2.~ /~~tIJ.SI~ :'.3: ~ ..~~~~~~ ~~ ~~~~~~ 3 s. 11700.00 j' 0.000 0.000 7711.74 6930.30 5095.75 -4697.06 217746.06 225ll 74.93 0.00 0.00' 0.00 11800.00'~ 0.000 0.000 7811.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 11900.00 fi 0.000 0.000 7911 J4 693030 5095.75 -4697.06 217746.06 2251174.93 0.00 0.00 0.00 12000.00~' 0.000 0.000 8011.74 6930.30 5095.75 -4697.06 217746.06 2251174.93 ~ 0.00 0.00 0.00 ! 12057.26 O.ODU 317.331 8U69.00 6930.30 5095.75 -4697.06 ~ 217746.06 2251174 9 0.00 0.00 0.00 MARATHON Planned Wellpath Report NS #3 Version #1 Page 7 of 7 ri~~ BAKER ~1 MVt~r1~lE~ INTEQ . Operator __ _~. __ ~___ . ~ . MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field ' Ninilchik Field Wellbore NS#3 Facility Ninilchik State `HOLE & CASING SECTION5 Ref Wellbore::NS#3 Ref Wel lpath: NS #3 Versioa #1 String/Diameter Start MD [feet] End MD [feet] Interval [feet] Start TVD [feet] End TVD [feet] StaM N/S [feet] Start E/W [feetj End N/S [feet] End E/W [feet] 9.625in Casing Surface 0.00 1645.40 1645.40 0.00 1300.00 0.00' 0.00' S83.38 -537.74 7in Casing Intermediate 0.00 7249.55 7249.55 0.00 3669.00 0.00 0.00 4317J5 -3979.93 4.Sin Casing Production 0.00 12057.25 12057.25 0.00 8068.99' 0.00 0.00 5095.75 -4697.06' TARGETS Name MD [feet] TVD [feet] North [feet] East (feet] Grid East [us survey feet] Grid North [us survey feet] Latitude [o] Longitude [°] Shape NS #3 T onek Tl 29-Nov 06 3669.00' 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle y - NS #3 T onek T2 29-No 06 4199.00' 4924.41 -4539.12 217900.00 2251000.00 60 09 09302N 151 32 53.736W' circle ' y v- NS #3 T onek T10 29-Nov 06 4714.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle y - NS #3 T onek T3 29-No 06 5819.00 4924.41 -4539.12 217900.00 2251000.00' 60 09 09.302N 151 32 53.736W circl y v- NS #3 T onek T90 29-N 06 7294.00 4924.41 -4539.12 217900.00 2251000.00'' 60 09 09.302N 151 32 53.736W circle y ov- NS #3 T onek TD 29-N 06 8069.00 4924.41' -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.'736W circle y ov- , ~ ~ , . .~. , Projection System ~ . ~~ ~. ~ NAD27 / TM Alaska State Plane, Zone 4(5004), US feet .v_ .. __ ~ _ Software System WellArchitectTM 1.2 ; North Reference True User Michwilg ; Scale 0.999988 Report Generated ll/29/06 at 13:29:16 Wellbore last revised' ll/29/06 ! Database/Source file WA Anchorage/NS#3.xm1 ~ , , _ Local coordinates __ Grid coordinates Geographic coordinates North [feet] East [feet~ Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location -850.48 1080.27 222324.31 2245972.31 60 08 20.813N 151 31 24.067W Facility Reference Pt 221264.03 2246847.56 60 08 29.190N 151 31 45399W Field Reference Pt 226657.85 2252005.12 60 09 21.189N 151 30 01.220W ~ , `Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum ' 169.00 feet Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level / 169.00 feet ! Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt Glacier #1 (RKB) Field Vertical Reference Mean Sea Level ELLPATH DATA (6 stations MD Inclination Azimuth TVD Vert Sect North East DLS esign feet ° ° feet feet teet feet °/100ft omments 0.00 0.000 317.331 0.00 0.00 0.00 0.00 0.00 ie On 200.00 0.000 317331 200.00 0.00 0.00 0.00 0.00 OP 1500.00 65.000 317.331 1238.55 661.63 486.49 -448.42 5.00 nd of Build 7200.00 65.000 317331 3647.48 5827.58 4284.94 -3949.69 0.00 egin Drop .. ~ ~- ;m ~ 12057.26 0.000 317.331 8069.00 693030 5095.75 -4697.06 0.00 D HOLE & CASING SECTI ONS Ref Wellbore: N S#3 Ref Wellpath: NS #3 Version #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 1645.40' 1645.40 0.00 1300.00 0.00 0.00 583.38 -537.74 7in Casing Intermediate 0.00 7249.55 '7249.55 0.00 3669.00' 0.00 0.00 4317.75 -3979.93 4.Sin Casing Production 0.00 12057.25 12057.25 0.00 8068.99' 0.00 0.00 5095.75 -4697.06 ri~~ Wellpath Design Summary Report BAKER Wellpath: NS #3 Version #1 Nvt~NEl~ MARATHON Page 1 of 2 INTEQ • ~ TARGETS _ Name MD [feet] TVD ' [feet] North [feet) East [feetJ Grid East [us survey feetJ Grid North [us survey feet] Latitude [o~ Longitude ~o~ Shape NS #3 T onek T129 N 06 3669.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09302N 151 32 53.736W circle y - ov- NS #3 T on k T2 29 N 06 4199.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle y e - ov- NS #3 T n k T10 29 N 06 4714.00 4924.41 -4539.12 217900.00' 2251000.00 60 09 09.302N 151 32 53.736W circle yo e - ov- NS #3 T onek T3 29 N 06 5819.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle y - ov- NS #3 T onek T90 29 N 06 ~294.00 4924.41 -4539.12 217900.00' 2251000.00 60 09 09302N 151 32 53.736W circle y - ov- NS #3 Tyonek TD 29 N 06 g069.00 4924.41 -453912 217900.00 2251000.00 60 09 09302N 151 32 53.736W circle - ov- ri~~ Wellpath Design Summary Report BAKER Wellpath: NS #3 Version #1 NtIQ-NE~i MARATHON Page 2 of 2 INTEQ • i M MARATNON 'MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsuta) Slot: Slot #3 Field: Ninilchik Field /Veil NS #3 Tar ets ~~.^ BAKER NuaN~s iNTEQ Well Profile Data p~e nCermwnt MD Ina' n ocaiN rt L L«alE n OLS ~ TbOn 0.00 0.000 717731 O.OO 0.00 Op0 0.00 0.00 KOP 00.00 0.000 317331 3o0.W O.OU 0.00 000 0.00 FnoalBUiiE 15000p 65400 3173]1 1230.55 JB6.49 -<C8.02 500 %163 ._ Itn~inf)rn~i ]}0000 65000 311331 36G]J6 E20d94 ~ -39<969 000 581158 . ~ 936G56 0W0 ]i1]31 5095.]5 469'06 300 69I030 , ID 12f~5]Iti OJ00 J1]331 ~469]06 000 693030 Fastina (ftl Z 0 ~ ~ ~ ~ x ~ ~AARATHOM ~.~. ~ ae) a r.~~ennse 1~w. ~ t .e(F~cn~ - MARATHON Oil Company Location: Cook Inlet, Alaska (Kenai Penninsula) Slot: Slot #3 Field~. Ninilchik Field Well: NS #3 Facililv: Ninilchik State Wellbore: NS#3 ( . ~ ~~ BAKER EIY6HES iNTEQ VNell P~le Data Defi n Gomm~nt MD ' NO (11 N(11) L~ acal E(11) L DLB ~°/10011 VS II) TbOn 0.00 o.OW 377D7 0.00 o00 0.00 000 0,00 NOP 300.00 0000 377331 I00.40 000 O.W 0.00 0.00 EnEOIBNM 150000 G5.000 377.D1 1238.56 188.08 <48.~1 SOp %1Q Dro ]2U0.00 65000 317Si1 JBa).M 0281.91 390.969 000 58]].58 ErN0.o 9366.% OWO 317511 53]8.90 5095.]5 -afi9]W 300 693030 TD 120512fi OWO 317.331 BO89.00 5085.]5 dfi9]Ofi 000 8930.30 Traveling Cylinder: Map North o• ~ao• w' nan reai soo~ eo' ~un ~we s~ ~ \ SIO 1 ~ ~,. ,~~ '°°" S I 2 ~~ fp' iS0' fI0' ~q' ~, MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 1 of 13 ri~~ BAKER Nuc~NE~ INTEQ . . Operator .., r~ ~ xr vw. . , , MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet] Easting [US feet] Northing [US feet] Latitude [°] Longitude [°] Slot Location -850.48 1080.27 222324.31 2245972.31 60 08 20.813N 151 31 24.067W 'Facility Reference Pt 221264.03 2246847.56 60 08 29.190N 151 31 45.399W Field Reference Pt 226657.85 2252005.12 60 09 21.189N 151 30 01.220W , , , ..w. . ~ , M ~ ~ ,, _ ..,_. . _ . . ~ ~_ _ x. Calculation method Minimum Curvature Glacier #i (RKB) to Facility Vertical Datum 169.00 feet Horizontal Reference Pt Slot Glacier # 1(RKB) to Mean Sea Level _ 169.00 feet Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00 feet MD Reference Pt Glacier #1 (RKB) ' Field Vertical Reference Mean Sea Level s,.,~~.~~~~~~~~.,.,;~.... ~ ~ ~..~~d. ~ ~. ~ T ..~~, . ,N.,~... ,.~... _ ~~ ~_, .. ~ ,z _.~ .. ; ~ POSITIONAL UNGERTAINTY CALCULATION SETTINGS Ellipse Confidence Limit 3.00 Std Dev E1lipse Start Depth 0.00 feet Surface Position Uncertainty included Declination 19.10° East of TN Dip Angle 73.09° Magnetic Field Strength 55283 nT ,rA~~.,_~,w . .. ~ ~,~..,_ v « ~. ~.~~~_ ~~,. , < ~; , ~, ~~ , ~. .. ~~. , ,. . . ~. .~. u.: o,: li , ~v~ ~ ~~~. . .~: ~,~ ANTI-COLLISION RULE ~Rule Name IE-type Closest Approach w/Hole&Csg Limit:0 StdDev:3.00 w/Surface Uncert ~Rule Based On ~Ellipsoid Separation~ ~Plane of Rule IClosest Approach Threshold Value 0.00 feet ~ ~Subtract Casing & Hole Size `yes IApply Cone of Safety ~no ~ .~,, -~ 1_ ~ ~„ , . .. ,, ~. .~,a, ux. r-n ~.v~. . _ HOLE & CASING SECTIONS Ref Wellbore: NS#3 Ref Wellpath: NS #3 Version #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 1645.40 1645.40 0.00 1300.00 0.00' 0.00 583.38 -53'7.'74 7in Casing Intermediate 0.00 7249.55 7249.55 0.00 3669.00 0.00 0.00 4317.75' -3979.93' 4.Sin Casing Production 0.00 12057.25 12057.25 0.00 8068.99 0.00 0.00 5095.75 -4697.06' ~ • MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 2 of 13 rr~~ BAKER Nu6NEs INTEQ • • •. 1 1 Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State Start MD End MD [feet] [feet] 0.00 12057.26 aviTrak ~ath: NS #3 Version #1 Positional Uncertainty Model Log Name/Comment Wellbore CALCULATION RANGE & CUTOFF I From: 0.00 MD To: 12057.26 MD C-C Cutoff: 1500.00 feet OFFSET WELL CLEARANCE SUMMARY (9 Offset Wellpaths selected) Offset Offset Offset Offset Offset Ref Min GC Diverging Ref MD of Min GC Min GC ACR Facility Slot Well Wellbore Wellpath MD Clear Dist from MD Min GC Ell Sep Ell Sep Status [feet] [feet] [feet] EII Sep [feet] Dvrg from [feet] [feet] MGO MGO #1 MGO #1 MGO #1 MWD<0-11600'> 0.00 11591.99 0.00 0.00 1129135 0.00 PASS MGO MGO #2 MGO #2 MGO #2 PGMS<0-2500'>MWD<2523-12026'> 0.00 10341.03 0.00 0.00 9995.99 0.00 PASS MGO MGO #3 MGO #3 MGO #3 MWD <0-13771> 0.00 8571.09 0.00 0.00 8070.04 0.00 PASS ^ -___.,._ e_ MG ------- MGO ~ __ __ _ _ - .____ _- - -- ---- - WD > I __-_ -__ 1 _ _ _ - ~ _ ~ ._ _ 1 PAS O I F ll k C C F ll C k ~~ ~' ~~ C k ~- ~, ~ 8256> 0 00 24 ~3 0 00 6 0 9482 20 0 0 'P S MG ~ ; $.,. ree a a s _~ ., ;;.. ~ :; S al a ree s $ ree _ .. ' n 0 .: . ~; ; , . . ; ~ -0 ; . ~ -0 A ~ ~ MGO Texaco Ninilchik #1 Texaco Ninilchik #1 Texaco Ninilchik #1 MSS <0-12903'> l ( 0.00~ 1059095 { _ 0.00 I 0.00 ~ 10289.93 r - 0.00 _.._- PASS ', -- NinilchikState Slot#1 NS#1 - NS#1 --- - -..._,. MWD<0-10346> _ . _ - . _ 0.00 . _ ~ 119.43 -___ .--- 0.00 .._- 0.00 -- - -..-- 106.19 --- 1500.00 - PASS Ninilchik State Slot #2 NS#2 NS#2 MWD <0-11500'> 234.53 137.15 234.53 239.90 124.11 I500.00 PASS PaxtonPad Slot#1 PaYton#1 P~ton#1 MWD<0-10115> 0.00 215099~; 0.00 0.00 21164.53 0.00 PASS MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 3 of 13 r~'r~ BAKER MY6NES INTEQ ~ .~ . ? Operator ~. ' , ~. MAR.ATHON Oil Company v _ Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State CLEARANCE DATA - Offset Wellbore: MGO #1 Offset Well~ath: MWD<0-11600'> ~.R. ~ . .~ Facility MGO Slot: MGO #1 Well: MGO #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] r [feet] t [feet Status 0.00 0.00 0.00 0.00 12.29 -5.71 9490.81 6655.72' 35.04 11591.99 1129135 300.64 PASS C-C Clearance Distance Cutoff: 1500.00 feet ~ : .v. , _, , . , WF,i.i.PATH CnMPn~iTiON Offset Wellbore: MGO #1 Offset Wellnath: MWD<0-11600'> Start MD feet] End MD [feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 11600.00 NaviTrak (Standard) MWD <0-11600'> MGO #1 . r r.:: , ,. ,. .~,., .~~xw~,,~. .. _,., ~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 (See WELLPATH DATUM on paQe 1 of this report) • MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 4 of 13 ri~~ BAKER MY6I~IES INTEQ ,~_.r . . Operator ~.. .. . . ., 1 ~ MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State w, ~ tr,. ~ , . . ,: , ~~, ~ ~ ~ CLEARANCE DATA - Offset Weltbore: MGO #2 Offset Well~ath: PGMS<0-2500'>MWD<2523-12026'> . ~ .R Facility: MGO Slot: MGO #2 Well: MGO #2 Threshold Value=0.00 feet j~ = 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' 6630.09 3748.82 9466.24 180933 10.82 10341.03 9995.99 345.04 PASS GC Clearance Distance Cutoff: 1500.00 feet ~ , ,,. _ ~~M ~ WF.T.i.PATH ('nMPnSTTinN nff.cet Wellhore: M(:O #2 Offset Wellnath: PGMS<0-2500'>MWD<2523-12026'> ~~--------- -- Start MD [feet] --- ------ -- End MD [feet] -- - ------- --- - - Positional Uncertainty Model Log Name/Comment Wellbore 0.00 2341.00 Gyrodata standard - Continuous gyro PGMS <0-2500 MGO #2 2341.00 12026.00 NaviTrak (Standard) ' MWD<2523-12026'> MGO #2 ~~a~v~.:~~~~,~ ,, ,~~ _:, ,. :> ~. .. ~. ~ , . ,, ~ wr,~ ~ ~.. , _~ ~ . _ xOFFSET WELLPATH MD REFERENCE - Offset Wellbore: MG0 #2 Offset Wellpath: PGMS<0-2500'>MWD<2523-12026'> MD Reference: Glacier #1 (RKB) Offset 7'VD & local coordinates use Reference Wedlpath settings (See WELLPATH DATUM on page 1 of this report) ~ MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 5 of 13 ri~~ BAKER Nuc~NE~ INTEQ _,P~. . ~~ . . > Operator ~. m . . ~ .x .. ~. ~ ~ MARATHON Oil Company Slot 51ot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ~ ~_~ ~,._ ~CLEARANCE DATA Offset Wellbore: MGO #3 ~~ ~._~ x~~., ~, x_..._ ~ ~ K, . . ~ <~. , , . Offset Wellpath. MWD <0-13771> ~_ ..._ ~,. ~ . _ ~n . _7.... ~ ~Y Facility MGO Slot. MGO #3 Well: MGO #3 ~„~a.~ v .. ~ .. Threshold Value=0.00 feet w fi= interpolated/extrapolated station ti. ,,. ~ _ ~ _ , 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 [feetJ [feet] [feet] [feet] [feet] [feet] [feet] [feet] [°] [feet] _ feet] ! [feet] Status ~ 0.00 ~ 0.00~ 0.00 0.00 8510.05 3838.98 7657.77 -290.67 357.83 8571.09 8070.04~ 501.05~ PASS C-C Clearance Distance Cutoff: 1500.00 feet ""HOLE & CASING SECTIONS O ffset Wellbore: MGO #3 Offset Wellpath: MWll <U-13771> 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 2508.00 2508.00' -18.00 1754.50' S711.61 4000.58 5609.06 3573.94 8.Sin Open Hole 2508.00 7332.00 4824.00 1754.50 3409.96 5609.06 3573.94 5268.98 2235.82 6.125in Open Hole 7332.00 13771.00 6439.00' 3409.96 8128.95 5268.98 2235.82 4976.26 1090.06 20in Conductor 0.00 99.00 99.00 -18.00 81.00 5711.61 4000.58 5711.73' 4000.67 9.625in Casing Surface 0.00 2507.00 2507.00' -18.00 1754.15 5711.61' 4000.58 5609.12 3574.21' 7in Casing Intermediate 0.00 7320.00 7320.00 -18.00 3405.86 5711.61 4000.58 5269.88 2239.14 3.Sin Liner 0.00 13771.00 13771.00 -18.00 8128.95 5711.61 4000.58 4976.26 1090. ~ _ s „>. ~, ~ ~. _. ~. ~ . ~.nr~h~.a ~<a<,~ ~ ~ ,w,.,:~< x ~- , _mx,N. . ~. _ ~ ~ WELLPATH COMPO5ITION Offset Wellbore: MGO #3 Offset Wellpath: MWD <0-13771> Start MD [feet] End MD [feet] Positional Uucertainty Model Log Name/Comment Wellbore 0.00 13771.00 Na~iTrak (Magcorrl) MWD <0-13771> ' MGO #3 1 .. . A ~~ .o =~~.~3 _nr ~,~~.~ . ~._. v..~~.,~_.~~ ...~ o- __ ~~.,,~ ..~s ~.,~~~ . _ _ ~, ,_~w~..~ . .t h,~.~~~ ~,,>.~ ~~ _ ,.x:~~,~,. ~ ~.,w„~. $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 (See WELLPATH DATUM on page 1 of this report) MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 6 of 13 ri~~ BAKER Nuc~NE~ INTEQ ~ ~ Operator ~ ~. ~ MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ~.r . ~~r~. .,.~ ~ zCLEARANCE DATA Offset Wellbore. MGO#4 . Offset Wellpath MWD <0-8175> .. x. ~_. ~ . Facility. MGO Slot: MGO#4 ~ Well: MGO#4 ~ ..r _ Threshold Value-0.00 feet ~= interpolated/extrapolated statton . . 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] [feetJ [feet] [°] [feet~ [feet] [feet] ' Status 0.00 0.00 0.00 0.00 4.98 -13.02 9312.22 659839 3532 11412.99 ll111.79 301.20 PASS C-C Clearance Distance Cutoff: 1500.00 feet .., ~ r~ ,_ . _ ~..._,. , ~ ~ ,~- x ~ ~, _ Nni,F. R, f ACTNf CF.CTi(lNS nff.cet Wellhnree MGn#4 nffset Wellnath: MWD <0-8175> 3tring/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 120.00 3300.00 3180.00 101.98 1456.27 567838' 4020.88 6111.48 3397.18 8.Sin Open Hole 3300.00 8175.00 4875.00 1456.27 4809.69 6111.48 3397.18 6682.30 2547.57 13375in Conductor 0.00 116.00 116.00 -18.00 97.98 567'7.80 4020.83 5678.35 4020.87 9.625in Casing 0.00' 3283.00 3283.00 -18.00 1452.82 5677.80 4020.83 6109A2 3401.62 3.Sin Liner 0.00 8175.00 8175.00 -18.00 4809.69 5677.80' 4020.83 6682.30 2547.57 x~~, _~ ~ ~~. ~ . WELLPATH COMPOSITION Offset Welibore: MGO#4 Offset Well ath: MWD <0-8175> Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore 0.00 1686.00 NaviTrak (Magcorrl) MWD <0-1686> MGO#4 1686.00 3225.00 NaviTrak (Standard) MWD <1748-3225> MGO#4 3225.00 3480.00 NaviTrak (Magcorrl) MWD <3292-3480> MGO#4 3480.00 8175.00 NaviTrak (Standard) ', MWD <3543-8175> MGO#4 ~,,;~~~tiu.u _ ~,~-~..~a _. >~ ~. ; ~ ..,~ .K ,~,~u _~3 > . : . . .~,~: , _ ~_. ~_ v~ ~ ~>.H~ . ,x..~.~~~~~ ~w~~. OFF5ET 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 (See WELLPATH DATUM on paQe 1 of'this report) MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 7 of 13 ri~~ BAKLR MY6NES INTEQ . Operator ~ . .. , . ~ MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 ;Field NinilchikField Wellbore NS#3 Facility Ninilchik State . „_ ~ . ~~ . ~ CLEARANCE DATA - Offset Wellbore: SoCal Fatls Creek Offset Wellpath: MSS <0-8256'> Facility: MGO Slot: SoCal Falls Creek Well: SoCal Falls Creek 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 31.43 10.44 7879.58 5798.62 3635 9783.24 9482.20N 301.04 PASS C-C Clearance Distance Cutoff: 1500.00 feet ,4.. x ., . WF.LLPATH CnMPnCiTi(1N nffcet Wellhnre~ Cn('al Fallc C'reek [lffcet Wellnath~ MCC <(1_R2S6~> ' .~ Start MD [feet] End MD [feet] Positional Uncertainty Model Log Name/Comment Wellbore ; 0.00 8256.00 Photomechanical Magnetic (Standard) MSS <0-8256'> SoCal Falls Creek ~ ~ ,, ~.._~ ~ < rt,.> ; ~., , . ,,- ti:~ ~...:M,~ _ . ~ .~.~_r~ OFFSET WELLPATH MD REFERENCE - Offset Wellbore: SoCal Falls Creek Offset Wellpath: MSS <0-8256'> MD Reference: Datum #2 (RKB) Offset TI~D & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on paQe 1 of this report) ~ MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 8 of 13 ri~~ BAKER NYl~I~IEf INTEQ ~ . . .. 1 , ; Operator MARATHON Oil Company ._, . „. w. .. ~, , ~ . . Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ~. ~ :. N. , . w. , ... _ , ~~.x . 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 ~_ . ...~ ~ ~ ..,.~ ~ _ . .,. s. Ref MD : Ref TVD Ref North Ref East Offset MD Offset T'VD 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 377010 3223.74 8864.77 4815.77 28.51 10590.95 10289.93 301.03 PASS C-C Clearance Distance Cutoff: 1500.00 feet -~ ~~~~~x. ri,. ,~ ~..,,.. ... _ ~ ~WELLPATH COMPOSITION Offset Wellbore: Texaco Ninilchik #1 Offset Wellpath: MSS <0-12903'> ~ Start MD [feet] End MD [feet] PosiHonal Uncertainty Model Log Name/Comment Wellbore 0.00 12903.00 Photomechanical Magnetic (Standard) MSS <0-12903'> Texaco Ninilchik #1 ~ ~_ a ~r,r..~~~wn~~...~ _,.~~. . „ ~, , ~ „~ ~. =r, .. ,. _., OFFSET WELLPATH MD REFERENCE - Offset Wellbore: Texaco Ninilchik #1 Offset Wellpath: MSS <0-12903'> ~MD Reference: Datum #2 (RKB) IOffset TVD & local coordinates use Reference Wellpath settings I (See WELLPATH DATUM on paQe I of this report) ~ • MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 9 of 13 ri.~ BAKER Nu6NEs INTEQ . . .. o ~ Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State CLEARANCE DATA - Offset Wellbore: NS#1 Offset Wellpath: MWD <0-10346> ~~'~ ' Facility: Ninilchik State Slot: Slot #1 Well: NS#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 0.00 0.00 -65.49 99.87 123.26 119.43 10619 13.23 PASS 100.00t 100.00 0.00 0.00 99.35 99.35 -6532 10030 123.07 119.70 106.89 12.81 PASS 200.00 200.00 0.00 0.00 199.55 199.54 -64.82 101.42 122.59 120.37 107.53 12.84 PASS 300.OOt 299.87 3.21 _-2.96 303.08 303.06 -63.56 101.24 122.65 123.79 3 110.39 13.40 PASS "' t 398.99 12.80 -11.80 407.11 406.98 -60.91 97.56 123.98 i 13213 r 117.15 f 14.98 PASS SOO.OOt 496.58 28.71 -26.46 513.80 51327 -56.68 89.54 126.36 145.00 128.87 16.14 PASS 600.OOt 591.93 50.81 -46.84 625.83 623.78 -48.97 73.13 129.75 159.26 141.92 17.34 PASS 700.OOt 684.28 78.94 -72.77 737.52 731.78 -39.15 46.54 134.71 174.45 155.99 18.47 PASS 800.OOt 772.96 112.88 -104.05 8~4.25 840.98 ~ -25.32 7.89 140.99 190.41 ; 170.79 19.62 PASS 900.OOtl , gS~;:~ ,;r 152.38 i -140.46 ~ 972.45 _ 945.9$ -,- -5.68 -42.54 148.22 ~ ~% 206A1j ,_~, ~~r:~ 185.00 21.01 , ~<. PASS 1000.00t 936.58 197.13 -181.70 ~ 1082.79 1037.90 15.84 -99.59 155.63 223.32 200.40 22.93 PASS 1100.OOt 1010.28 246.78 -227.48 1186.49 1119.06 3596 -160.87 162.47 246.41 220.75 25.65 PASS 1200.OOt 1077.82 300.98 -277.43 1293.61 1198.41 58.43 -229.19 168.75 275.14 245.75 2939 PASS 1300.OOt , ~ . ,. ,:, _ 1138.68 "i~9~:39 359.29 ` ~1.29 -331.18 -___._.^--- , -38833 1404.28 ~ ~~~~~2 1274.41 x ~n ~, . 9•~ 85.84 __ .. _ __._. ~,~` 113.20 -304 83 _____.._. Y -377 34 ~ 174.50 _.. - 177.96~ ~ ~ ~ 306.42 - s'r ~ ~.341.79~ ~~,.z, ~ 272 24 -- - 302.16~ ~ 34.18 ~ 3 <,~~ PASS pAS~_. 1500.00 1238.55 486.49 -448.42~ ---- ---- 1610.34 , 1403.89 143.02 _---- - -454.44; 181.00 381.24 I 335.46 45.78 PAS~ 1500.OOt 1238.55 486.49 -448.43I 161034 1403.89 - 143.02 __~.__ . . _ -454.44 ... _. 181.OOi ~ _ ___- _. __ 381.24 ____ ~ 335.45 45.79 PASS 1600.OOt 1280.81 553.13 -509.85 171637 1463.54 M 175.59 -535.81 183.93~ 420.23 367.55 52.68 PASS 1700.OOt 1323.08 619.77 -571.28 1811.42 ~ 1514.92 206.41 -609.60 185.303 457.31 397.82 59.50 PASS 1800.OOt 1365.34 686.41 -632.70 1896.08 ~ ~ 1561.19 __ 233.16 -675.25 18536 ~g , 495.58 ~ 429 55 `'~`.; i 66.04 PASS 1900.OOt 1407.60 753.05 -694.13 1982.98 ~ 1608.20 25936 -743.48 185.71~ 535.17 462.23 72.93 PASS 2000.OOj~ 1449.86 819.69 -755.55 2078.44 1657.89 287.63 -819.90 186.90 574.89 494.00 80.89 PASS 2100.OOt 1492.12 886.32 -816.98 2164.70 1701.52 312.94 -889.91 187.25 614.77 526.29 88.48 PASS 2200.OOt 1534.39 952.96 -878.40 2251.86 174636 337.86 -960.36 187.59 655.75 559.57 9618 PASS i 2300.OOt; 1576_65 ` - 1019.60 - -- -939 8 j3 2345.88 1793.53' 364.63 - -1037.16 188.45 696.78 592.17 104.62 PASS 2400.OOt 1618.91 1086.24 -1001.26 2431.85 1835.98 388.93 -1107.86 188.69 738.05 625.4'7 112.58 PASS 2500.OOt 1661.17 1152.88 -1062.68 2517.49 1878.79 412.72 -1178.10 188.86 780.07 659.61 120.46 PASS 2600.OOt 1703.43 1219.52 -1124.11 2603.25 1922.23 436.20 -1248.29 189.01 822.73 694.45 128.28 PASS 2700.OOt 1745.70 1286.16 -1185.53 2691.46 1967.36 460.ll -1320.15 189.26 865.81 729.61 136.20 PASS "' , ~° ~~~ 8Q ~- ~~~ ° -1246 96 ~~~~ ~ ~ ~ -"~ ' 486 ' 9 ' 1399 7 f D ., ' ' . , . ~, ~ ~ . . ~ ; ,k~-~ . 5 : - ~.; , ; 9 A1 908.85 ~,: : , 763.86 '~ ~.: 144:99 Pta,~ ;: 2900.OOt 1830.22 1419.44 -1308.38 2886.16 2065.93 514.22 -1479.07 190.68 950.85 797.04 153.81 PASS 3000.OOt 1872.48 1486.08 -1369.81 2972.22 2109.63 538.61 -1549.10 190.72 993. 02 83136 161.66 PASS 3100.00~ 1914.74 1552.72 -1431.24 3085.53 2166.54 571.59 -1641.35 192.09 1034. 49 862.58 171.91 PASS 3200.OOt - 1957.00 --- -- 1619.36 ---..__~ -1492.66~ .__--i __._ 317534 . _-.- 2210.42 ---- ---- _ 598.70 . _ --------- --- -1714.88 -- 19228 ___. .w_ 1074. ~__ 873 ; . 894.54 _ 180.33 PASS "' 300.OOt ~ 1999.27 1686.OQ :09 ~.. ~ ~ , 32b0.99 _ 2253.03 t ! 624.25 -1784.64 192.25 1115. 74; _. 927.45! 188.29~ ~_. PASS 3400.OOt 2041.53 1752.64 -1615.51 ~ 3346.42 2296.32 649.41 -1853.86 192.19 1157 08~ ~ 961.00 196.08 PASS 3500.OOt 2083.79 1819.28 -1676.94~ 3476.67 2361.46 68936 -195932 194.03 1197.31' 989.59 207.72 PASS 3600.OOt 2126.05 1885.92 -1738.36 3568.57 2406.25 719.03 -2033.88 194.21 1235. 91 1019.57 216.34 PASS 3700.OOt 2168.31 .. 1952.56 _ _ __._____, .-_ -1799.79 .._._- __--.-_- n_. 3656.40 ._. ~.., _.. _ 2449 27 - 74728 ~ -2105 OS __ 194 21 1274. 68; 1050.11 224.57, AP SS 3800.OOt 2210.58 2019.20'; -1861.2i 3741.41 2491.1T 774.27. __2173.93 __ 194.10 ~3i3 9~` ._~_ __. inRi ~x va32 5~~ pacs C-C Clearance Distance Cutoff: 1500.00 feet • • MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 10 of 13 ri~~ BAKER Nu6NEs INTEQ ~ ,, ~ ; Operator : , , _ _ MARATHON Oil Company Slot _ _ Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State U ~t ~,._ s,~, _ CLEARANCE DATA - Offset Wellborec NS#1 Offset Wellpath: MWD <0-10346> _ ~ . ~~ ~ n _, _ ~.. _ u. Facility Ninilchik State Slot: Slot #1 Well: NS#1 Threshold Value=0.00 feet ~= interpolated/extrapolated station e , ,.~ . r _ . ~ ~ , x.v .. _~. _ ~u. Ref MD ' Ref TVD Ref North Ref East Offset MD Offset T'VD Offset North Offset East Horiz Bearing C-C C1ear Dist Ellipse Sep ACR MASD ; ACR re__., re ,..i rr ~~~ rs es~ rv o+~ rf n4~ «nn*~ Ifaa+~ ~~~ IfPP*~ ~fPPt~ ~}~P.P.f~ ti Sf9tUS ___' 3900. OOfi .i""a 2252 .84 ..a_-__i. 2085 .84 .-'__ -1922. 64 -.. 3823 .62 2532. 19 799. 91 -2240 .40 193 .88 1353 .74 1113. 60 240 .14 PASS 4000. OOj~ 2295 .10 2152 .48 -1984. 07 3906 .90 2574. 40 825. 38 -2307 .50 193 .70 1394 .20 1146. 48 247 .'72 PASS 4100. OOt 2337 36 2219 11 -2045. 49 3993 .89 2619 19 851. 60 -2377 33 193 .64 1435 .14 1179. 61 255 .53 PASS 4200. OOt 2379 .62 2285 .75 -2106. 92 4104 .45 2674. 74 885. 50 -2466 .69 194 .41 1475 .55 1210. 03' 265 .51 PASS C-C Clearance Distance Cutoff: 150Q.00 feet v~.fi. . x .>,. , ,;. r ~i(li.F .C f'ACTNf_ CF.C`Ti(1NC nffcet Wellhnre~ NC#1 nffset Wellnath: MWD <0-10346> 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] 12.25in Open Hole 0.00 1745.00 1745.00 0.00 1479.08 -39.92 60.88 36.35 -139.65 8.Sin Open Hole 1745.00 5580.00 3835.00 14'79.08 3514.07 3635' -139.65 382.44 -1064.73' 6.125in Open Hole 5580.00 10346.00 4766.00 3514.07 8103.72 382.44' -1064.73 482.45 -1290.71 20in Conductar 0.00 87.00 87.00 0.00 87.00 -39.92' 60.88 -39.88 60.98 9.625in Casing Surface 0.00' 1744.00 1744.00 0.00' 1478.53 -39.92 60.88 36.25 -139. 7in Casing Intermediate 0.00 5554.00 5554.00 0.00 3495.71 -39.92 60.88 380.37 -1059. 3.Sin Liner 0.00 10346.00 10346.00 0.00 8103.72 -39.92 60.88 482.45 -1290.71' .~.,....:~ ~,: >.. ~,r.~,,,. . ~ ;..~~ .~.- ~~... <x=,<.... ~ . .~,s~~z. __~~._. ~~rc. -~ ~.~ ~ . ~ --- --- -__---___--___ '~.... . _-• --- --,. ..'.... ..:, ., .; ~...,,~ _„ ,,;'.,.,_ ! a.vivi ~Wr,i. n I~Ci vrc rv~il uuvrc:i~affl V-iVJ~V- SY ~~ n EndMD pos'tionalUncertaintyModel LogName/Comment Wellbore [feet feet 0.00 ii 10346.00 NaviTrak (Magcorrl) MWD <0-10346> NS#1 ' ~ ~~. ._. . _. .r~x~z- ~ ~ xx,. _a. ., : ,_.~~, ~, ,~ ~_ ~ : ~ «.~ ~ .~ ~.. ~h~ ~~~ w.,.._ ~ . _ .< ~, .. . .~~ 'OFFSET WELLPATH MD REFERENCE - Offset Wellbore: NS#1 Offset Wellpath: MWD <0-10346> MD Reference: Glacier 1(RKB) Offset TVD & docal coordinates use Reference Wellpath settings (See WELLPATHDATUM on page 1 of this report) MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 11 of 13 ri~~ BAKER Nu6NEs INTEQ . . ~ ~ Operator ~:. _ _ - -- _ _._, _ __ - ___.. . _-- _ ------r m ~ MARATHON Oil Company Slot Slot #3 ~~ID~~~ Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State CLEARANCE DATA - Offset Wellbore: NS#2 Offset Wellpath: MWD <0-11500'> ' Facility: Ninilchik State Slot: Slot #2 Well: NS#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 0.00 0.00 -124.98 62.42 153.46 139.70 126.46 13.23 PASS 100.00t 100.00 0.00 0.00 10137 101.36 -124.48 6231 153.41 139.21 125.97 13.24 PASS 20~.00 200.00 0.00 0.00 203.42 20338 -123.59 6034 153.98 137.57 124.69 12.88 PASS 234.53t 234.53 0.38 -035 238.55 238.40 -123.85 57.64 154.98 137.15 124.12 13.04 PASS '- 239.90t 239.89 0.51 -0.47 243.98 243.81 -123.93 57.10 155.17 137.17 124.ll 13.06 PASS 300.OOt 299.87 3.21 -2.96 304.38 303.60~ -125.62 48.85 158.09 138.91 125.60 13.31 PASS 400.OOt 398.99 12.80 -11.80 ~ 401.87 398.75 -130.92 28.40 164.37 14924 135.19 14.05 PASS SOO.OOt 496.58 28.71~ -26.46 496.28 489.75 -138.55 4.46 169.53 170.23 154.96, - _ 15.26 PASS 600.OOt 591.93 50.81 -46.84 588.56 577.44 -147.62 -22.76 173.08 200.41 - 183.93 ~ - 16.48 PASS 700.00 f 684.28 78.94 -92.77 677.63 659.90 -158.00 -54.73 y~T~, 175.65 238.88 ;. 221.04' >~; 17.84' ~_~ PASS 800.OOt 772.96 112.88 -104.05 765.70 739.69 -168.97 -90.36 177.22 284.14 264.69 19.46 PASS 900.OOt 857.27 152.38 -140.46 845.24 811.35 -179.55 -123.21 177.03 335.53 314.27 21.26 PASS 1000.00f 936.58 197.13 -181.70 916.88 874.29 -190.93 -155.45 176.13 393.90 370.67 23.23 PASS 1100.OOt 1010.28 246.78 -227.48 988.81 935.53 -203.69 -190.94 17536 458.10 432.56 25.54 PASS ~. ~40t ~ ~ l07?.82 ~ ~ 3-00.98 `~~~ ~2~`7`43~ 1058.71 ~`"-~ 9'~~ ~~,.. -216.49 `-~~8.69 ~ 174.62 °~'` +2`f:6~ ~ 498.53 ~~ ~ ~ 28: i2 ~' 1300.OOt 1138.68 359.29 -331.18 1122.21 1042.75 -228.48 -266.13 173.69 599.09 568.34 30.75 PA 1400.OOt 1192.39 421.29 -38833 1174.58 1081.93 -239.02 -299.28 17232 67538 642.01 33.37 PAS~ 1500.00 1238.55 486.49 -448.42 1225.49 111823 -250.02 -333.24 1'71.11 755.10 718.93 36.17 PASS 1500.OOt 1238.55 486.49 -448.43 1225.49 1118.23 -250.02 -333.24 171.11 755.11 718.93 36.18 PASS 1280 81 53 13 ~ 5~ 8 ~ 1270 09 ~48 52 260 09 3 4 3 ~ : 169 $6 ~;~ 36 b ~` ~' ~ ~ ~ 797 86 38 80 ~ ASS _ ° 600.~t . . ~ 5 9. _ - 5 . 5 . . - - 6 , ~ . ; , 8 . 5 ., ~ ~ . _ - , ~: . . - P 1700.OOt 1323.08 619.77 -57128 1308.18 1173.12 -269.41 -391.93 168.60 919.40 878.25 41.14 PASS 1800.OOt 136534 686.41 -632.70 1344.42 119537 -278.95 -418.89 167.51 1003.26 959.78 43.47 PASS ' 1900.00 f 1407.60 753.05 -694.13 1379.57 1215.86 -288.82 -445.69 166.59 1088.11 1042.35 45.76 PASS ' 2000.00 f 1449 86 819 69 -755.55 1420.65 1238.14 300 84 -478 03 166.09 1173.63 1125.13 48.50 PASS ~"' ~ ._~______ 1492 12 _._ _ __.__. __ 8632f _ ~ ~ 816.98 ~._ ._._.._ ~ ~1462 87' f ~ '~'~~~~~ _~. ___.~ :F; ~ 313 50 . ~_~ ...__. ~-512 47 _ e~~ t 76 "~ 1~~5 _ ~_ ;62 ~ ~ " ' ~ _. _.~ 1208 19 ~ 5~ ~2 5~ ~' . ~ - . ; ~ ~ . . , , . , . ~;~ ~ ax ~. ~. _ . ~ ~ .4 2200.00 f 1534.39 , 952.96 -878.40 1507.75 1279.54 -327.13 -549.98 165.61 1345.90 1291.34 54.56 PASS 2300.OOfi 1576.65 1019.60 -939.83 1566.08 1306.21 -344.79 -598.76 165.97 1432.14 1373.47 58.68 PASS C-C Clearance Distance Cutoff: 1500.00 feet HOLE & CASING SECTIONS Offset Wellbore: NS#2 Offset Wellpath: MWD <0-11500'> ' 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] I 12.25in Open Hole 0.00 1621.00 1621.00 0.00 1332.19 -7619 38.05' -148.17 -177.35' 8.Sin Open Hole 1621.00 5942.00 4321.00 1332.19 3442.24 -148.17 -17735 -515.33 -1266.11 ; 7in Open Hole 5942.00 11500.00 5558.00' 3442.24 8311.57 -515.33 -1266.11' -678.37 -1755.17 20in Conductor 0.00 126.00' 126.00 0.00 126.00 -76.19 38.05 -75.95' 38.00 9.625in Casing Surface 0.00 1615.00 1615.00 0.00 132932 -76.19 38.05 -147.63 -175.84 ; 7in Casing Intermediate 0.00 5934.00 5934.00 0.00 3438.21 -76.19! 38.05' -514.63 -1264.13 i4.5in Liner 0.00 11499.99 11499.99 0.00' 83ll.56' -76.19 38.05' -678.37 -1755.17 . ~ MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 12 of 13 ri~~ BAKER I~IY6NE~ INTEQ . , Operator r ~, 1 MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field Ninilchik Field Wellbore NS#3 ~ Facility Ninilchik State . , .: ._~r , . ~~~~„_.,~. ~,.~ ~~.~.s~.. ~ .. ,,. ~~, >WELLPATH COM POSITION Offset W ellbore: NS#2 Ut~set Well ath: Mwli <u-115uu'> Start MD feet End MD [feet Positional Uncertainty Model Log Name/Comment Wellbore 0.00 1560.00 NaviTrak (Magcorrl) MWD <0-1560> NS#2 1560.00 2448.00 NaviTrak (Magcorrl) MWD <1629-2448> NS#2 2448.00 5882.00 NaeiTrak (Magcorrl) MWD <2573-5882> NS#2 5882.00 11500.00 NaviTrak (Magcorrl) MWD <6010-11500'> NS#2 _ _ _,. : ~ wtiti ,~_. ~. ., ~ ~ _ .~3 = OFFSET WELLPATH MD REFERENCE - Offset Wellbore: NS#2 Offset Wellpath: MWD <0-11500'> MD Reference: Glacier 1(21') (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) ~ MARATHON Clearance Report Closest Approach NS #3 Version #1 Page 13 of 13 ri~~ BAKER Nuc~NE~ INTEQ ~ . Operator , . . , , MARATHON Oil Company Slot Slot #3 ; Area Cook Inlet, Alaska (Kenai Penninsula) Well NS #3 Field ' Ninilchik Field Wellbore NS#3 Facility Ninilchik State ~~.w. ~ ~ r . , =x«:. ~. ~ ~,., ~.w_ t. CLEARANCE DATA Offset Wellbore: Pazton#1 Offset Well~ath: MWD<0-lOllS> „~F.a _ K _ . . ~ ~. . ~ . . . . , Q , Facility Paxton Pad Slot: Slot #1 Well: Paxton#1 Threshold Value=0.00 feet ~= interpolated/extra~olated station w.~. ._ .. z~~ _ ~ ~ .,ti 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 3 feet [feet [feet] [feet] [feet feet] [feet] [°] [feet] [feet] [feet Status 0.00 0.00 0.00 0.00 5066.76 3495.75 -12795.20 -16933.42 232.93 21509.95 21164.53 345.42 PASS C-C Clearance Distance Cutoff: 1500.00 feet ,.. ~~ ~~ _.,s ~ ~.n ~s . ~ .~».r . r ~ mrT ~.r~san~oTmiill~T l~CC ,.~ ti7..111........ D~o4....~1 . .. . /lffen+ Wnlln~*h• Nrwn<n_~~n~ ~ a> ~ ....a.~.~ ~~~~~ ~.~..~ Start MD ~ ~..___~" _"__' " End MD ____' Positional Uncertainty Model . Log Name/Comment Wellbore [feet [feet] 0.00 10115.00 NaviTrak (Magcorrl) MWD <0-10115> Paxton#1 ~,. ~ .: . .:. . . ~ ., „~:~; .>.. .., ~.,. . v~. . w~ _ _ u _ OFFSET WELLPATH MD REFERENCE - Offset Wellbore: Paxton#1 Offset Wellpath: MWD<0-10115> MD Reference: Nabors 129 (RKB) Offset 1'PD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this repart) ~ n ~_~ ~ ~ ~ ~~° IFE ~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PRO~ECT PLA11f~ ~. _ - • = =~ IFE _ Prepared For: MARATHON OIL C OMPANY Well Ninilchik State #3 Prepared by: Tony Tykalsky Reviewed by: Hal Martins Presented to: Will Tank January 10`h, 2007 IFE Kenai Peninsula, Alaska . • '~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: Enclosed is the revised recommended drilling fluid program for the Ninilchik State #3 Well to be drilled next year. The following is a brief synopsis of the program. Overview: NS #3 is a development well targeting the Tyonek formation at the Ninilchik 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 GO #3 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, NS #2 NOTE: This ,program is nrovided as a~uide onlv. Well conditions will alwavs dictate fluid nronerties required. ~~ ~ ~ ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. EXECUTIVE SUMMARY ~ p~~~ s~`~ +~/' s x ~L ,r . ~ . ~ ~ ~' ~ ~~RONME~P Our overall goal is no M-USwaco H5E incidents while providing fluids and solids control services to our customer. Qur goat fr~r NS #3 is t~ remov~ drill solids fra,m the mud system at a cost of less ~ th~n $Q.~9 p~r pound. This has been the aver~ge for the last five years of c~ntrifu~e ~ van operatians e Qur goal for NS #3 is ta drill th~ weil ~t ~ fiuid cost a~f less than $~5.43 per foot with a tatal volume of ~luid used less than 5499 barr~ts~ Use of the MI 5waco 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. ~~ ~ • '~ Marathon Oil Company Well Name: Ninilchik State #3 Ver _ Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervais Dept~t Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Int~rval (ft) Fluid cost per foot Volume Usage Solids Removal 0 -1645' < $6.45 ft < 1359 bbls 1645 - 7250' <$24.53 ft < 1897 bbls 7250 - 12057' <$32.97 ft < 2042 bbls Total Project Avg. Max. Targets for <$25.43 < 5499 bbls <$0.29 Ib o Spills from Centrifuge Drilling Van Operation Interval ~~ • w ~ :'~ ~ =~ I ~ U Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 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" 1645' 1300' Gel/Gelex Spud 8.6 - 9.4 7 $16,416 Mud Screens 150/180 mesh Desilter Centrifuge Van 7" 8-1/2" 7250' 3669' FloPro 9.4 - 10.0 7 $143,317 w/SafeCarb Screens 180 - 210 mesh Desilter Centrifuge Van 4-1/2" 7" 12057' 8069' F1oPro 9.6 - 10.2 10 $166,499 w/SafeCarb Screens 230 - 210 mesh Desilter Centrifuge Van 4-1/2" 7" Completion 12057' 8069' 6%KC1 8.55 6 $14,576 - 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 #3 Ver Location: Kenai, Alaska. Product Usage Summary PRODUCT Surface 12-1/4" Intermediate 8-1/2" Production '7" .Completian 3-1/2" Total Usage % of Total Cost M-I Bar 0 379 1634 0 1919 4.67 M-I Gel 515 0 0 0 515 1.46 Gelex 21 0 0 0 21 0.13 Soda Ash 7 9 20 0 36 0.21 Caustic Soda 7 28 31 0 66 0.90 Con or 404 0 4 7 0 11 4.49 Sodium Meta Bisulfate 220 28 31 1 80 1.70 Bicarb 7 19 20 0 46 0.26 Con or 303A 0 0 0 1 1 0.16 FloVis 0 133 123 0 256 17.13 Desco CF 14 0 0 0 14 0.21 DualFlo 0 0 123 0 123 3.26 Polypac UL 27 76 0 0 103 5.22 Greencide 25G 0 0 2 0 2 1.06 KCl 0 797 858 84 1739 10.39 Kla ard 0 26 28 0 54 12.14 Safecarb 0 379 408 0 787 4.86 Lubetex 0 45 49 0 94 2232 Steel Lube 0 0 8 0 8 2.37 Defoam X 0 11 11 0 22 0.67 Asphasol Su reme 0 152 82 0 234 6.40 En ineer Service 7 7 10 6 30 ~ • ! ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments NS #1 12.25" 190 8.7 73 32 15.5 After milling conductor shoe, spud in and drlg ahaed 1290 8.85 11 31 14.8 Continue drilling surtace interval 1745 92 15 17 8.8 TD surFace hole, POH for casing run 1745 9.35 10 7 7.5 Run & cement 9-5/8" casing 8.5" 2099 9.45 13 22 6.3 Drlg out casing, displace to FloPro, drlg 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 Drlg to 5570, POH, backream to shoe, RIH, OK, POH for logs 5570 9.6 14 20 5.6 Finish logging, run 7" csg, cement job failed, pump 2nd cement job OK 6.125" 5580 9 12 33 5.8 Drlg out casing, displace to new mud 6528 9.05 13 29 5.2 Run IOT = 16.8 PPG, drlg ahead 7551 9.3 12 28 5.8 Drlg to 7484' short trip OK drlg ahead sweep hole evey 500' 8493 9.6 9 25 5.2 Drig ahead, sweeps every 500' producing good results 9856 9.6 10 20 6 Drlg ahead 9955 9.6 9 23 6.8 POH for new MWD 10346 9.45 9 25 6.4 Drlg 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 & cement 4-1/2" liner packed off & lost returns 10346 9.65 7 18 7.6 Run temp survey, pump liner top cement job, polish liner top 10346 9.55 8 16 7.8 Displace well to brine, run 4-1/2" tubing 10346 8.65 Finish running tubing displece well to KCI brine, end of well 1-~~~5~9 s • ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Offset Well Information NS #2 12.25" 248 8.7 19 33 16 Clean out conductor, spud in and drlg ahead 1315 8.9 19 32 14.8 Circulate while fighting camp fire, short trip at 801' 1621 9.05 14 19 11.2 Drlg to TD, short trip OK run 9-5/8" casing 1621 9.1 14 19 11.2 Cement casing, mix new mud 8.5" 1997 9.4 10 15 8.8 Drlg out, displace to FloPro, drlg ahead 4008 9.45 12 15 7.4 Short trip @ 4008' OK 5005 9.6 14 26 7.2 Drlg ahead, short trip tight, drlg ahead 5942 9.7 16 23 6.8 TD well, short trip tight, POH 5942 9.8 22 28 6 Log well 5942 9.95 16 19 6.6 Run and cement 7" casing. 7" 5942 9.35 13 27 5.6 Drlg out cement displace to new mud, LOT = 18.5 PPG 6497 9.7 13 26 6.4 Drlg ahead 7086 9.4 12 22 3.8 Drig to 7000' wiper trok OK drlg ahead 7832 9.5 13 21 4 Rotate & slide while drillling 8449 9.5 13 21 3.2 Rotate & slide while drillling 9208 9.4 13 22 3 Drlg to 9015', short trip OK drlg ahead 9895 9.45 11 25 3.6 Trip for BOP test 10083 9.55 11 22 3.8 Drlg ahead 10875 9.5 11 23 4 Drlg ahead 11500 9.45 11 26 4.2 TD well, POH for logs (lots of coal at seen from bottoms up) 11500 9.6 10 22 3.8 Log on secong attempt 11500 9.4 9 21 4.4 Wiper trip after logs, lost drlg pipe, fish for same 11500 9.5 9 79 5 Condition well, spot lubtex pill in open hole (3%) 11500 9.4 9 19 5 Run liner, work thru bridge, pump cement job, PAC valve failed 11500 9.4 9 14 4.6 Pertorate liner & squeeze cement 11500 9.5 8 14 12.6 Second squeeze job, drlg out cement and retainer 11500 9.55 8 16 13 Drig out cmt 8 retainers, displace well to brine, end of well 1~ • 1~ r~ ~J Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 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. ~ Whole Mud Losses to the formation - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ 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 UL after consultation with town. ~ LSRV - When drilling with a F1oPro fluid, the low shear rate rheology should be maintained around 30,000 cps. In addition to adequate additions of FloVis Plus, this will also require keeping reactive drill solids to a minimum in order to reduce or eliminate false and unwanted high LSRV. ~ 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 - Conqor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Conqor 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 ~ GREENCIDE 25G ADDITIONS - Greencide 25G additions should be made daily when drilling in the production interval, in the range of 5 gallons per day. ~ 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. ~ ~- ~ • ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 _ Location: Kenai, Alaska. Interval Summary -12-1/4" hole 0 -1645' Drilling Fluid System GeUGelex Spud Mud Key Products MI Gel / Gelex / Soda Ash / Caustic Soda / MI Bar / PolyPac Supreme UL / Sodium Meta Bisulfate 5olids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss pH Solids (ft) (ppg) (sec./qt) (lb./100ft2) (mV30min) (%) 0- 1645' 8.6 - 9.4 50 - 75 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 +/- 75 sec.qt funnel viscosity. - Lower funnel viscosity to +/- 60 after any gravel has been drilled. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - 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 - 1359 barrels. - Estimated haul off volume - 1918 barrels. ~~ C~ ~ • ~~ Marathon Oil Company ~ `~'~ Well Name: Ninilchik State #3 Ver 1.1 ~'~ Location: Kenai, Alaska. Interval Summary -12-1/4" hole Virtual Hydrualics Snapshot ~~ T.D. M~ sWAC~ ~1995-2005 M-I L.L.C. MD: 1i{6 R OperaWr: Marathon Oil Company ~_, ~.•0~ 'MVN ol M~i LLL. ND: ~~OO R Well Name: Ninilehik State A0 YIRTUALHYDRAULICS' SnapSho[' B~tg,=~:,=.zs ~~ D Lota6on:KenaiPeninaula ale:1181Y007 Country: USA uapcn (ft) Density PV~cP) Tempenture (Iblgal) YP, LSYP (IbN00tt') (°F) Prassure Diatributfon (%) git= ?A.' pnn = i 5 DS = 59.7 ~ Drllling Fluld Water-Based Mud Mud Wsight 9.3 Iblpal TestTemp 120 °F System Data Flow Rah 645 gallmin Penetntion Rab 100 Pohr Rotary3pead 80 rpm Weight on Bit 6 10001b BitNozzlss 78-18•78•16-0 0-0-0-0-0 Presaure Loases Modified Powe~ Law Drill Strinp 621 p~i Bit 405 psi 8it OnIOH 0 psi Annulus 15 psi Sunc~e Equip 74 pd U-7ube EHsct 17 pai Tohl Syatsm 7087 psi ESD ECD aCW Csp Shoe 9.~7 9.52 9.68 TD 9.~7 9.60 9.76 VRDH - V~r~lon ].0 Fil~ - M5~].YDB - Hole cleaning deteriorates as angle build to +/- 70 degrees. Recommend a high viscosity sweep at interval T.D. prior to POH for casing run. 1~ ~- • ~eome~ry MD/ND Csg ODIID Mgl9 (•) Va (ft/mIn) Hola Cloan Index VG G i P i ,. _ . -'1~ ! Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Interval Summary -12-1/4" hole Virtual Hydrualics Hole Cleaning Index M~ ~YYAC~I~ ~1995-2005 M-I L.L.C. MD: 7663 k Operator. Marathon Oil Company 'Merkof M-I LLC. ND: ~ 3OO k Well Name: Ninilchik Sfata N3 VIRTUAL HYDRAULICS' VRDH' B,t s~=e: ,Z ZS ~~ Location: Kenal Paninfula nafe~ va~~nn~ c~„~r,v~ usn Hole Cleaning x d ~ c a~ c .~ R d U d 0 2 Flow Rate (gal/min) - Avoid hole cleaning issues by maintaining high flow rate (+/- 650 GPM), and ROP < 125 ft/hr IFE • ~ ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Interval Summary - 8-1/2" hole 1645 - 7250' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / PolyPac UL ! KCl ! SafeCarb 10 & 40, Asphasol Supreme Lubetex / Caustic Soda / Conqor 404 / Sodium Meta Bisulfate / Kla ard Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 200 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 5olids (ft) (ppg) (cp.) (cps) (mV30min) (%) 1645 - 7250' 9.4 - 10.0 8- 12 20 - 30,000 7- 9 +/- 9.5 +/- 7.5 % - Use one rig pit to drill out surface casing. In other rig pits, build new F1oPro fluid using the enclosed formula. - After drilling out surface casing, displace hole to FloPro fluid prior to running leak off test. - Maintain DO reading of less than 3 ppm with additions of Sodium Meta Bisulfate. - Maintain Conqor 404 concentration of 2000+ ppm. - If running coals become a problem, increase Asphasol Supreme additions. - Estimated volume usage for interval - 1897 barrels. - Estimated haul off volume - 3147 barrels. - Condition mud prior to running 7" casing. NOTE: Follow BOSCO guidelines when adding biocide, oarygen scavenger and corrosion inhibitor. ~~ CJ.11~~ • s ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Fluid Formula - 8-1/2" hole ' M~ sw~~~~,,,,.~- MUDCALC 4.5 - Water-Based Mud Calculation 8-1/2" Interval from 1645 -7250' inn„+ Descri tion NS #3 Intermedi ate Interval Formula Mud Wei ht 9.4 Preh drated Gel :' No Wei ht Material Caie > MI Bar P~h drated Gei Cnnc. Wei ht Materiat SG 4.2 KG( Chloride Wei ht Materiat Price KCI Wt% 6 vu~ u~ - ~ uu~ C~rder of Products Concentrati on Volume Product Addition Field, lb Lab, m Fietd 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 Stabili 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 O en Scaven er If tor ue becomes a roblem add u to 5% of the followin : 13 Lubetex 14.00 14.00 0.041 14.43 Lubricity ~y4.~ ~y4.tf Mud 1N~[ght ; 9.400 ide 29600 ~ ~ ~~ • • ~~~'~ Marathon Oil Company _ Well Name: Ninilchik State #3 Ver l.l - Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Virtual Hydrualics Snapshot ~~ T.D. M~ sWACO OO 1995-2005 M-I L.L.C. MD: 7YI9 tt Operator: Marsthon Oil Company . .~- •ra.n~orMai.~c. ND: 485J H Well Name: Ninilchik Suta Y3 YIRTUAL HYDRAULICS' SnapShot' B~~ S;=e: a.s ~~ Data: 118l2007 Loeation: Kenai Paninsula Country: USA Depth Geometry Angle Density PV (cP) Tempe~ature (R) MD/TVD Cag ODIID (°) (Iblgal) YP, LSYP (IbN00ft') (°F) Va Hole Clean Preasure Distribution (fUmin) Index (%) 0 0 400 B00 VG G F P Bif -~~ ~ Ahll = 16.2 DS = 48.7 I I I - ~ Drilling FIuId ~ FLOPRO NT Mud Weight 9.5 Iblgal Test Tamp 120 °F Syatem DaW Flow Rate 581 gaVmin Penetration Rate 85 ftlhr RoWrySpeed 70 rpm Weight on Bit 6 1000 Ib Bit Noules 15-15-15-15-15 0-0-0-0-0 Presaure Loasea Modified Power Law Drill String 554 psi MWD 225 psi Motor 225 psi Bit 400 psi Bit ONOH 0 psi Annulus 184 psi SuAaee Equip J4 psi U-Tube Ettect 20 psi ToWlSystem 1642 psi ESD ECD +Cut Csg Shce 9.59 10.74 70.22 TD 9.60 10.33 10.40 vxoH.v.~.~o~ ao - Hole cleaning should not be an issue while rotating drillstring. If extended periods of sliding is required, then added circulation and high viscosity sweeps may be needed. IFE ~' • • ~~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 -' Location: Kenai, Alaska. Interval Summary - 8-1/2" hole Virtual Hydrualics Hole Cleaning Index MI~7YY/'1VO ~~995-2005M-IL.L.C. . .M~M1 al MJ L.LC. YIRTUAL HYDRAULICS' YRDH' MD: 7Y49 ft Oparator: Marathon Oil Company ND: 4853 11 Well Name: Ninflcnik Shta N3 Bit 3ize: 8.5 in Loeation: Kenai Peninaula Date: 11912007 Counlry: USA x m a _ a~ _ ._ eo d U a~ 0 2 Hole Cleaning ~o Flow Rate (gal/min) - Maintain flow rates above 550 GPM along with ROP < 125 ft/hr. IFE E~~ ~ • '~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Interval Summary - 7" hole ~25a -12057' 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 / la ard / Lubetex / As hasol Su reme Solids Control Shale Shakers / Desilter / Centrifuge Van Recommended shaker screens - 200 - 230 mesh Potential Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions, stuck pipe. nterval Drilling Fluid Pruperties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity 1 min Fluid Loss pH Solids (ft) (ppg) (cp.) (cps) (mV30min) (°/a) 7250 - 12057' 9.6 -10.2 10 -14 20 - 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. - If running coals become a problem, treat with a 2 PPB addition of Asphasol Supreme. - Periodic additions of Greencide 25G will be needed to control bacteria build-up. - Estimated volume usage for interval - 2042 barrels. - Estimated haul off volume - 2761 barrels. - Condition mud prior to running 4-1/2" casing. NOTE: Follow BOSCO guidelines when adding biocide, oacygen scavenger and corrosion inhibitor. ~~ ~J..L.L.~ ~ • ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Fluid Formula - 7" hole M~ ~~_~_~~,,,.~ M-I L.L.C. MUDCALC 4.5 - Water-Based Mud Calculation Descri tion Mud Wei ht Wei ht Material Code Wei ht Material SG Wei ht Material Price 7" Interval from 7250 -12057' In ut NS #3 Production Interval Formula 9.4 reh dratetl ~el MI Bar 'drated Gei Conc. 4.2 KC{ Chlaricle KCI W#%o Out ut -1 bbl o 6 Order of Products Concenfration Valurn e ` Product Addition Field Ib :; Lab rn 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 Viscosi 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 4.00 4.00 0.010 3.33 Wellbore Stabili 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 O en Scaven er If tor ue becomes a roblem add u to 5% of the followin : 13 Lubetex 14.00 14.00 0.041 14.43 Lubricit Tatai ' 411.6 411.6 Estima#etl Volume U~a ~ 2042 barrels Galculated Mud Wei ht Total Chloride 9.800 29600 ~~ ~ • • ~~;'~ Marathon Oil Company ~ Well Name: Ninilchik State #3 Ver 1.1 Location: Kenai, Alaska. Interval Summary - 7" hole Virtual Hydrualics Snapshot ~~ T.D. M' L3. w~O 01995-2005 M-I L.L.C. MD: 12057 ft Operator. Marathon Oil Company . •"""'°~~"''~~c. ND:9858 ft WeIlName: Ninilchik3htaM3 VIRTUAL HYDRAULICS' SnapShOC B~~S,=e: ~ i~ ~ate: 11912007 Location: KenaiPan(mula Country: USA Depth Geometry Angle (H) MDI7VD Csg ODIID (°) (fl) (in) Denalty PV (cP) Temperature Va pb/gal~ YP, LSYP pb1100ft') (°F) (R/min) Hole Clean Preaaure Diatribution Index (%) vc r, F a gt-'~' Ann=38 DS=46.9 Drll~ing Fluld FLOPRO NT Mud Weight 9.8 Iblgal Test Temp 120 °F System DaW Flow Rate 275 gaUmin Penetration Rate 85 klhr RoWrySpeed 70 rpm Weight on Bit 6 1000 Ib BitNoulea 11-11-11-11-11 11-0-0-0-0 Presau~e Lossea Modified Power Law Drill String 690 psi MWD 145 psi Motor 145 psi Bit 222 pai Bit ONOH 0 psi Annulus 559 psi SuAace Equip 8 psi U-Tube EHect 54 psi Total System 1984 psi ESD ECD +Cut Csg Shoa 9.90 11.52 11.62 TD 9.89 71.07 17.11 vrtoN . v«.io~ ~.o Fq~.NE/f.MOB - Tangent section of 7" casing may develop cuttings beds. Consider low/high viscosity sweeps while bit is inside 7" casing only (not in open hole). IFE E~i':' • • ~~ Marathon Oil Company ~ ~'~ Well Name: Ninilchik State #3 Ver 1.l -"i Location: Kenai, Alaska. Interval Summary - 7" hole Virtual Hydrualics Hole Cleaning Index M~ sWACO 01995-2005 M-I L.L.C. - 'MeAoIM-IL.LC. VIRTUAL NYDRAULICS' YRDH' MD: 12057 ft Operator: Manthon Oil Company ND: 9858 ft Well Name: Ninilehik State ~k3 Bi! Size: 7 in Location: Kenai Peninsula Date: 7I912007 Country: USA Hole Cleaning x d -a _ rn _ .~ ev d U m 0 2 Flow Rate (gal/min) - Flow rates of 250 - 275 GPM are adequate to clean this interval under most drilling rates.. NOTE: Higher flow rates mav increase ECD's to a level to high for the formation. ~~ CJ..L.~~ • i ~~~ Marathon Oil Company ~ y~'~ Well Name: Ninilchik State #3 Ver 1.1 ~~- Location: Kenai, Alaska. Interval Summary - Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Ninilchik State #3 Volumes: Tubing Volume 4-112~~ Tubing 112.28 barrels 3.992 x 7250 ft Packer @ 7150 ft MD 6.276 ~ 7250 ft MD 4.50 ~ 12057 ft M D Annular Volume Casing x Tubing ~3a.8a barrels Total Annular Volume 134.84 Tubing Volume 112.28 Total Hole Volume 2a7.~2 Treatment Procedures. 1. After the 4-1/2" tubing is run and the drilling fluid is conditioned, build at least 250 barrels of 6% KCL brine. 2. Displace mud out of well with the 6% KCL brine. Add 1 drum of Conqor 303A and 2 sack of Sodium Meta Bisulfate to the first 135 barrels of brine pumped., 3. Displace the 135 barrels of treated fluid with an additional 112 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 F~i' :' • • ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 _ 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. ~~ • • Marathon Oil Company Well Name: Ninilchik State #3 Ver Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit Reactivit PPE M-I BAR Weighting Agent *~ ~ 0 E M-1 GEL Viscosity control *1 1 0 E GELEX Bentonite Extender ~ 1 0 E FLOVIS Viscosifier ~ 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E HEC ~oss Circulation Material ~ ~ 0 E Safe-Carb 10,40,250 Bridging and weighting agent *~ Q ~ E Nut Plug Loss Circulation Material *~ 1 0 E M-I Sea) F, M, C Loss circulation Material *~ 1 (~ E Mix II F,M,C Loss circulation Material *~ '~ 0 E DESCO CF Dispersant 1 1 0 E SALT (Solar) Densifier 1 0 4 E POTASSIUM CHLORIDE Shale Inhibitor ~ 0 0 E CAUSTIC SODA Alkalinity control $ 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *~ 0 0 E SODA ASH Alkalinity control ~ 1 0 E SODIUM BICARBONATE Alkalinity control ~ 0 0' E CITRIC ACID pH Adjuster 1 0 0 E BIOBAN BP-PLUS Biocide *2 0 0 J GREEN CIDE 25G - Biocide 3 0 0' J DEFOAM X- Defoamer 1 1 0 J G-SEAL Sized graphite LCM 1 1 0 E SteelLube Lubricant 1 1 0 J LUBE TEX Lubricant 1 1 0 J D-D CWT Detergent 2 1 0 J Concor 404 Corrosion Inhibitor 1 1 0 .1 SAFEKLEEN Drilling fluid additive ~ 1 0 J Asphasol Supreme Shale Inhibitor 1 1 0 J Sodium Meta Bisulfate Oxygen Scavenger ~ 1 0 J ~~ ~ • ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver l.l Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS ~ ~ ~ ~ ~ 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 Vapar Respirator K- Air Line Hood or Mask, Gloves, Full Suit, Boots X- Consult your supervisor for special handling directions ~ ~ ~ ~'~ Marathon Oil Company Well Name: Ninilchik State #3 Ver 1.1 _ Location: Kenai, Alaska. Contacts Contact Title e-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttyl~alsky@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 Oliver Amend Field Engineer 907 260-0895 907 590-3636 MI SWACO (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) John Nicholson / Dan Drilling Foremen 907 283-1312 Bird 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. I~- ~ Alaska Department of Natural Resources Land Administration System ...,;;. . ,...._ .~c~Ni~:.:j,R „53fl*.`x,~ .. . . . , ... ~ ~ ~.. ~~c~~~ ~~E~#~~ ~~1`~~'1 ~~{k' ~~bif1S Page 1 of 3 ~k17tt11"~~ ~3~Ut"€~S ~~ Alaska D Case Summary File Type A~~ ~ File Number: 389180 i ~ Printable Case Fite_Summary See Township, Range, Section and Acreage? ~~,~~ ~` Yes ~ No ~~:.. ~ ~:,~~!~±~~,~~;., http://www.dnr.state.ak.us/las/Case_Summary.cfm?FileType=ADL&FileNumber=389180... 1 /30/2007 ~ Alaska Department of Natural Resources Land Administration System Page 2 of 3 http://www. dnr. state.ak.us/las/Case_Summary.cfm?FileType=ADL&FileNumber=3 89180... 1/30/2007 • • ~ ~ Alaska Department of Natural Resources Land Administration System Page 3 of 3 • . SECTION 21, NE/4NEl4, S/2NE/4, SE/4, SE/4SW/4, 320 ACRES,• SECTION 28, N12S/2, NE/4, E/2N~~"14, 400 ACIZES,• CC3NTAINING 720 00 ACRES, MORE OR LESS' 071~1/2003 **********PARTICIPfITINGAREA ESTABLISHED **'****~******** LEASE INCOIZPC~RATEI3 IN PART INTD SrISAN DIONNE PARTICIPATIN~ AREA ~~ ~ Last updated on 01/3012007. Not sure who to contact? Have a question about DNR? Visit the P~l~lic _I.n_fic~rr~n~~io~t Center. Report technical problems with this page to the Webmas~er. Site optimized for Netscape 7, IE 6 or above. This site also requires that all CQCIK.I~S must be accepted. State ofAi~ska Naturaf Resaurces LAS Home Copyright Privacy System_Status - - - http://www.dnr.state.ak.us/las/Case_Summary.cfm?FileType=ADL&FileNumber=3 89180... 1 /30/2007 Check No Check Date 8ank Bank No Vendor No ~a(atr1O11 OII COfYi()af1yl ACCOUNTS PAYABLE DEPARTMENT Hndig P. O. 8ox 22164 Accts Payable Contact Center Tulsa, OK 74 1 21-21 64 HS 1255225 O1/23/2007 NCBAS 7780 5001123 Phone: 91&925-6097 _ __ ~~.'::~.~i~~...~~._~.. "~~.~~'r< <~~~:n,..": I...re~..:.i:.,.~a~~..'~.':~:: .' C7ei..~i!'S'.n.innni ~.~.~. . . . C.rnae..Aii~nF+n! .'.:'- '-.~[5ennreif ~'~~.u.....~...,iEfe:,n......;..i ~. . rora~: ~ ~ ~ TIt.~~`S~II~'~'aL L~T~'ER CHEC'KLIST ~~~ ~ ~. ~. d ~ ~t ~ ~I/i~/l~'.~,ii,~ ~S'~r~ -~3 ~~~# ao,~ ol~ / Development Ser~~iee Exploa-atory Stratigraphic ~'est lion-Conventional W"etl Cir~le appropriate Letter / Paragraphs to be Incluaied in Transmittat L.etter CHECK ~DD-O'~ S w'H.~r (OPTIOtiS} : :~PPLIES ; ~iL'LTI LATER~L ([f (ast two digits in .~P[ number are benveen 60-69) TEXT FOR :~PPROVAL LET'TER T'he permit is for a ne~~ we(Ibore segment of e~cistin~ wz I I P~rmit tio. , API ~~. Production ~hould continue [o be .~ri~inal .aPf number ~tated abovz. ~0- - reported a~ a function oF the P[LOT HOLE tn accordance with ZO .-~.~C ?5.00~(t~, all records, data and logs ' acquired for the pilot hole must be cleariv differentiated in both : well name ( ~ pH} and AP( aumber ; { ~~- - -_) from records, data and (ogs ; acquired for well ,)~j~ SP:~CI~iG The permit is approved subject to ful( compliance with 20 A.~C ; CO~ EXCEPTIO~ 2~.0». Approva( to perforate and produce ' inject i; contingent upon i;;uance of a conservation order approvin~ a spacing '~30'~ ex;,eption. ~i~~l~y0%L ~v. as~umes the ' ~ !iabifit~, of any prote~t to the spacing exception that may occur. DRY' D[TCH :~([ drti ditch sampfe sets submitted ro the Commission must be in SA~IPLE no ;reater than 30' samp(e interv~als fi-om belo~~ the permafrost or : From ~~here samp[es are tirst caught and 10' sample inter~als through target zones. Please note the folio~~in~ specia! conclition o[ thi~ permir. \'on-Conventional production or productian testin~ of coal bed methane is not atlowed : ~~<< Por (name oP ~vell) until after (Com~anv Name) has designed and ; implemented a water we(t testing program to provide base(ine data on water quality and quantity. (Com~anv Name) must contact the Commission to obtain ad~ance appco~~a( of such water well testing proQram. 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