Drilling Report Averye #1 2014-10-14T20:27:09+00:00

MEMORANDUM

DATE: October 13, 2014

TO: “JHP North Fayette Joint Venture” Venturers

FROM: J. Riley Senor, Petroleum Geologist

RE:Averye 1H Production for the first week

Current Activity Averye 1H Production for the first week. The well started off producing more gas than expected and this may be “bumping” down the oil production a bit. The BTU (British Thermal Unit) is nice and high having been tested a couple of times above 1400. Since the well has such a good/great gas burn power we should get a bonus over standard well head price. Prior to swabbing the well our tanks contained 116 bbls. A load of 168.75 bbls was sold on 9/19/2014.

  • 9/20/2014, the well produced 254.24 bbls oil, 258.85 bbls water and 173 mcf gas and 2 loads were sold.
  • 9/21/2014, the well produced 672.83 bbls oil, 177.02 bbls water and 626 mcf gas and 2 more loads were sold.
  • 9/22/2014, the well produced 611.21 bbls oil, 151.97 bbls water and 691 mcf gas and 5 loads were sold.
  • 9/23/2014, the well produced 497.13 bbls oil, 146.96 bbls water and 627 mcf gas and three loads were sold.
  • 9/24/2014, the well produced 442.65 bbls oil, 180.36 bbls water and 836 mcf gas and two loads were sold.
  • 9/25/2014, the well produced 360.93 bbls oil, 170.34 bbls water and 952 mcf gas and three loads were sold.
  • 9/26/2014, the well produced 288.29 bbls oil, 175.35 bbls water and 922 mcf gas and two loads were sold.
  • 9/26/2014 Choke Setting 23/64 and the tubing pressure is 520.

  • Total sold the first week was over 3,000 bbls of oil and 4,800 MCFG.

    Formation Tops: Pecan Gap: 8,462′ to 8,458′
    Austin Chalk: 8,907′ to 8,900′

    API: 42-149-30530
    TRRC Drilling Permit # 782247

     

    **note** At the end of the drilling report is a brief description of some of the terms and or abbreviations that may be used in the reports to follow.

     

    07/15/14  MI n RU (moved in and rigged up) Longhorn Drilling Unit #1 commencing horizontal drilling


    07/16/14  Serviced rig, strap DC (drill collar) and BHA (bottom hole assembly), working on motor and transmission, wash and clean parts, cut CSG (casing) head off and weld new CSG head, nipple up BOP (blow out preventer), PU (pick up) kelly and DRLG (drilling) mousehole, PU 8 DRLG collars and DRLG pipe, tag cement at 119’, PU (pick up) kelly, circulate test pipe rams and annular to 1,000 lbs, drill cement.


    07/17/14  DRLG, cement from 2,800’ to 2,820’; 20’, rig services, POOH (pulled out of hole) to change bit, TIH (tripping in hole), drilled cement. Drilled to the depth 2,820′.


    07/18/14  Drill cement to 3,274’, rig services, pump, sweep, circulate hole clean, RU (rigging up) and run gyro through drill pipe at 3,200’, PU kelly, circulate and pump slug, TOOH (tripping out of hole), lay down drill collars, TIH, PU 8 joints of drill pipe to replace collars, PU kelly, circulate hole clean with 2 pumps, circulate slow with 1 pump, WO (waiting on) cement truck. Drilled to the depth of 3,274′.


    07/19/14  Circulate, WO cement trucks, RU cement trucks, cement from 3,274’ to 3,100’, pull 10 stands out of cement, PU kelly, circulate WO cement, TIH (trip in hole) tag cement at 3,105’, circulate bottoms up, set kelly back, TOH (trip out hole), PU 8 3/4 bit, laydown 14 joints drill pipe, PU kelly, filled the drill pipe, circulate, WO cement.


    07/20/14  Circulate slow, WOC(waiting on cement), finish going in hole, tag cement at 3093’, DRL, cement from 3,093’ to 3,159’, circulate, sweep out, pump slug, POH, lay down 4 joints drill pipe, PU directional tools, test MWD (measure while drilling) and motor, TIH, PU kelly and fill drill pipe, time drill from 3,159’ to 3,164’; 5’, DRLG 1ft/hr, slide from 3,164’ to 3,237’; 93’, rotate, 3,237’ to 3,268’; 31’, slide from 3,268’ to 3,283’; 15’, rotate, 3,283’ to 3,331’, 48’. Drilled to depth of 3,331′.


    07/21/14  Serviced rig, rotate 3,331’ to 3,419’, slide 3,419’ to 3,429’, rotate 3,429’ to 3,644’, slide 3,664’ to 3,664’, rotate 3,664’ to 3,832’, slide 3,832’ to 3,847’, rotate 3,847’ to 3,958’, slide 3,958’ to 3,973’, rotate 3,973’ to 4,083’, slide 4,083’ to 4,090’, hole tight, circulate, condition mud, cant rotate or go up or down; stuck, work pipe, pull to 180,000 lbs, mix pill, spotted outside pipe, work pipe, pull up to 210,000 lbs, work pipe, pull up to 140,000 lbs, slack off, pull to 140,000 lbs every hour, pipe still stuck. Drilled to depth of 4,090′.



    07/22/14  Fill slugging pit with 30 bbls (barrels) of diesel, spot diesel, 20 bbls on formation, pick up pipe to 60 K, pipe came loose, circulate hole clean, pump slug, POOH (pull out of hole), LD 8 DC, check BHA, change bit, PU PDC (poly crystalline diamond) bit, GIH (going in hole), PU 9 jts of DP, PU kelly, circulate bottoms up, rotate 4,090’ to 4,209’, slide 4,209’ to 4,219’, rotate 4,219 to 4,540’. Drilled to depth of 4,540′.


    07/23/14  Serviced rig, rotate 4,540’ to 4,647, slide 4,647’ to 4,654’, rotate 4,654’ to 4,835, slide 4,835’ to 4,842’, rotate 4,842’ to 5,461’. Drilled to depth of 5,461′. MI RU Rolof Company Mud Logging Unit and Crew.


    07/24/14  Serviced rig, rotate 5,461’ to 6,307’ SPM (strokes per minute) 120, RPM (revolution per minute) 45, PP (pump pressure) 1,750. Drilled to depth of 6,307’.


    07/25/14  Serviced rig, rotate 6,307’ to 6,526’ WOB (weight on bit) 6, RPM (revolutions per minute) 60, GPM (gallons per minute) 362; slide 6,526’ to 6,533’ WOB 10, GPM 373, TFO (tool face orientation) 80; rotate 6,533’ to 7,050’ WOB 6, GPM 362, RPM 60. Drilled to depth of 7,050’.


    07/26/14  Service rig, rotate 7,050’ to 7,591’ WOB 6, GPM 362, RPM 60; slide 7,591’ to 7,596’ WOB 10, GPM 373, TFO 128; rotate 7,596’ to 7,654’ WOB 6, GPM 373, RPM 60; slide 7,654’ to 7,656 WOB 10, GPM 373, TFO 125. Drilled to depth of 7,656’.


    07/27/14  Rotate 7,656’ to 7,685’ WOB 8-10, RPM 60-65, 29’/hr; service rig, rotate 7,685’ to 7,973’ WOB 8-10, RPM 60-65, 27’/hr; rotate 7,973’ to 8,073’ WOB 8-10, RPM 60-65, 40’/hr, Resync MWD, rotate 8,073’ to 8,355’ WOB 8-10, RPM 60-65, 30’/hr. Drilled to depth of 8,355’.


    07/28/14  Rotate 8,355’ to 8,373’ WOB 6-8, RPM 60-65, 18’ @ 36’/hr, serviced rig, rotate 8,373’ to 8,436 WOB 6-8, RPM 60-65, 63’ @ 31.5’/hr, pump sweet and circulate out, POH (pull out hole) to surface pipe; (slick hole), TIH (tripping in hole) to 8,400’; (slick hole), PU kelly, fill pipe, break circ and wash 8,400’ to 8,436’ no fill, rotate 8,436’ to 8,474’ WOB 6-8, RPM 60-65, 38’ @ 15’/hr_(Pecan Gap Est. top 8,406’ (60’ deeper than planned))_; rotate 8,474’ to 8,624 WOB 6-8, RPM 60-65, 150’ @ 21’/hr; slide 8,624’ to 8,696 WOB 8-10, 72’ @ 14’/hr. Drilled to depth of 8,696’.


    07/29/14  Rotate 8,696’ to 8,718’ WOB 8-10, RPM 60-65, 22’ @ 22’/hr, serviced rig, slide 8,718’ to 8,828’ WOB 6-10, 110’ @ 10’/hr; slide 8,828’ to 8,926’ WOB 6-10, 98’ @ 12’/hr _(TD 20’ into Austin Chalk)_, circulate sweep and 2 bottoms up for wireline logs, pump slug and set kelly back, PU 1 jt DP, POH for wireline logs (notified to be here @ 09:00-10:00). DRLG ROP (rate of penetration) and reactive torque sliding changed @ 8,903’. Sample @ 8,900’ = Shale. Sample @ 8,910’ = 40% Limestone, each 5’ afterwards increased limestone %. Drilled to depth of 8,926’.


    07/30/14  Serviced rig, POOH, LD direction tools, RU Weatherford wireline logging truck, RIH (run in hole) with logging equipment and log, rig down Weatherford, make up RR bit #4 and TIH filling every 40 stds, tag at 8,893’, PU kelly, fill pipe, and ream 8,893’ to 8,926’, circulate and condition hole, RU lay down truck, pump slug and set kelly back, LD 4” DP, pull wear bushing, RU casing crews. Notified Railroad Commission (Angie) for cementing. Called 7/30/14 to cement 7/31/14 @ 16:00. Averye #1H: Job Number 2014-8253.


    07/31/14  Serviced rig, RU casing crews and run 5-1/2” CSG, tag bottom @ 8,926’, rig down CSG crew and lay down truck, RU and circulate with rig pumps, safety meeting and test Halliburton lines to 8,000 Psi, pump spacer, 76 bbls cement, displace CSG with water, bump slug with 500 Psi, hold 5 min, bleed back to 0 Psi (2 bbls back), floats holding, prep stack to PU for slips, PU stack, set slips with 85% string weight, ruff cut CSG, nipple down 11” BOP, final cut CSG, nipple up tubing head and test to 3,000 Psi, nipple up 7-1/16”, (spool, double ram annular, and rotating head, choke manifold line) and clean pits, CO(clean out) kelly’s and kelly bushing’s.


    08/1/14  Test BOP’s, blind’s, pipe rams, HCR, choke line manual, 2” kill line and choke manifold 250 low / 5,000 high,,, annular 250 / 3,000,,, rotating head 250 / 1,500, while testing, unload 2-7/8” DP as it arrived, cut and slip DRLG line and CO(clean out) electric motor belt on koomie unit while waiting on 2-7/8” DP, unload and strap 2-7/8” DP, RU gas buster and flare line, serviced rig, PU 2-7/8” DP, tag @ 8,817’, install rotating head, test CSG to 1,500 Psi, (OK), drill cement, float collar, cement and shoe 8,817’ to 8,925’ (float 8,840’ to 8,841’, shoe 8,924’ to 8,925’, drill new formation 8,925’ to 8,930’, pump sweep and circulate out, set kelly back and POOH for directional tools. Drill to depth of 8,930’.


    08/2/14  Serviced rig, POH for directional tools, PU curve assembly and test (OK), TIH, install rotating head, PU kelly and fill pipe, slide 8,931’ to 8,958’ WOB 8-10, 27’ @ 10.8’/hr; slide 8,958’ to 9,052’ WOB 8-10, 94’ @ 14.4’/hr, LD (lay down) 4 jts for south curve, work trough for south curve, time drill 8,931’ to 8,934’ (1’/hr / 1” every 5 mins). Drilled to depth of 9,052’.


    08/3/14  Time DRLG 8,934’ to 8,936’, 2’ @ 2’/hr; slide 8,936’ to 8,980’, 44’ @ 9.7’/hr, work on mud pumps, slide 8,980’ to 9,057’, 77’ @ 15.4’/hr; slide 9,057’ to 9,115’, 58’ @ 8.9’/hr, pump sweep and circulate out, POH for lateral assembly (chain out), POOH with 1 monel and LD MWD. Drilled to depth of 9,115’.

    08/4/14  Change directional BHA to lateral assembly and test (OK), serviced rig, TIH, LD 3 Jts, attempt to enter sidetrack turning string, TIH check for south lateral (OK), slide 9,115′ to 9,196′, 81′ @ 16.2’/hr; rotate 9,196′ to 9,227′, 31′ @ 20.6’/hr; rotate 9,227′ to 9,235′, 8′ @ 8’/hr (wait on Bill to call for target); slide 9,235′ to 9,301′, 66′ @ 14.6’/hr; rotate 9,301′ to 9,322′, 21’/hr; slide 9,322′ to 9,342′, 20′ @ 13.3’/hr; rotate 9,342′ to 9,345′, 12′ @ 24’/hr (seems like motor locked up) 15 hrs on motor, unable to circ, set kelly back, chain out 8 stds to CSG and POOH. Projected to the bit 92° – curve should be landed ready to rotate lateral. Drilled to depth of 9,354′.

    08/5/14   TOOH with BHA #5, LD BHA #5, PU BHA #6 surface test same, TIH, with BHA #6, work into side track continue TIH, rotate 9,354′ to 9,417′, 63′ @ 18’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,000 Psi, Diff pressure 150 Psi; slide 9,417′ to 9,427′, 10′ @ 10’/hr, WOB 25K, TFO 180, SPM 105, GPM 147 @ 2,100 Psi, Diff pressure 200 Psi; rotate 9,427′ to 9,449′, 22′ @ 22’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,000 Psi, Diff pressure 150 Psi; slide 9,449′ to 9,455′, 6′ @ 6’/hr, WOB 25K, TFO 180, SPM 105, GPM 147 @ 2,100 Psi, Diff pressure 200 Psi; rotate 9,455′ to 9,576′, 121′ @ 27’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,000 Psi, Diff pressure 200 Psi; slide 9,576′ to 9,582′, 6′ @ 12’/hr, WOB 25K, TFO 170, SPM 105, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 9,582′ to 9,673′, 91′ @ 20’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,100 Psi, Diff pressure 200 Psi. Drilled to depth of 9,673′.

    08/6/14   Rotate 9,673′ to 9,703′, 30′ @ 60’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100 Psi, Diff pressure 100-150 Psi, serviced rig, Slide 9,703′ to 9,711’8′ @ 16’/hr, WOB 25K, TFO 130 , SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 9,711′ to 9,798′ 87′ @ 25’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi; slide 9,798′ to 9,818′, 20′ @ 10’/hr, WOB 25K, TFO 190, SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 9,818′ to 9,861′ 43′ @ 22’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi; slide 9,861′ to 9,871′, 10′ @ 10’/hr, WOB 25K, TFO 190, SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 9,871′ to 10,019′, 148′ @ 27’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi; slide 10,019′ to 10,029′, 10′ @ 10’/hr, WOB 25K, TFO 130, SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 10,029′ to 10,114′, 85′ @ 21’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi; slide 10,114′ to 10,122′, 8′ @ 8’/hr, WOB 25K, TFO 150, SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi; rotate 10,122′ to 10,146′, 24′ @ 24’/hr, WOB 6K, RPM 60, SPM 95, GPM 140 @ 2,100-2,150 Psi, Diff Pressure 100-150 Psi; slide 10,146′ to 10,152′, 6′ @ 6’/hr, WOB 25K, TFO 150, SPM 100, GPM 147 @ 2,000 Psi, Diff pressure 100 Psi. Note: While drilling @ 9,974′ encountered oil show, observed oil at shakers, samples had heavy fluorescents. iN THEM, GAS INCREASED TO 425 UNITS, CURRENTLY STILL SEEING OIL AT SHAKERS, fluorescents in samples gas is at 625 units, max flare height observed 15′ current flare height 3′-5′, no casing pressure observed on connections. Drilled to depth of 10,152′.

    08/7/14   rotate 10,152′ to 10,273′, 121′ @ 22’/hr, WOB 6K, RPM 60, SPM 95, GPM 127 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi, circulate gas and oil out from fracture @ 10,280′ casing pressure increased from 100 Psi to 1,500 Psi, gas increased from 405 units to 831 units, flare 15′-20′, rotate 10,273′ to 10,477′, 204′ @ 23’/hr, WOB 6K, RPM 60, SPM 95, GPM 127 @ 2,100-2,150 Psi, Diff pressure 100-150 Psi; circ hole clean and prepare KWM for trip, LD 46 Jts DP, circ bottoms up and kill them, TOOH for new BHA, change out BHA, found rubber fins missing on MWD tool, multiple pieces of rubber in UBHO sub. Drilled to depth of 10,477′.

    08/8/14   Finish making up new BHA, serviced rig, TIH, fill DP ever 40 STDS, install rotating head, orientate and work into sidetrack, slide 9,052′ to 9,198′, 146′ @ 19.5’/hr, WOB 15K, TFO HS, SPM 96, GPM 133 @ 2,000-2,150 Psi, Diff pressure 100-150 Psi; rotate 9,198′ to 9,291′, 93′ @ 23’/hr, WOB 6K, RPM 60, SPM 95, GPM 127 @ 2,200 Psi, Diff pressure 200 Psi; slide 9,291′ to 9,354′, 63′ @ 21’/hr, WOB 15K, TFO HS, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi; rotate 9,354′ to 9,449′, 95′ @ 32’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 200 Psi. Drilled to depth of 9,449′.

    08/9/14   Serviced rig, rotate 9,449′ to 9,481′, 32′ @ 32’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 200 Psi; slide 9,481′ to 9,486′, 5′ @ 10’/hr, WOB 20K, TFO 169L, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi; rotate 9,486′ to 9,608′, 122′ @ 27’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 200 Psi; slide 9,608′ to 9,613′, 5′ @ 10’/hr, WOB 20K, TFO 150L, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi; rotate 9,613′ to 9,798′, 185′ @ 28’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,400 Psi, Diff pressure 200 Psi; slide 9,798′ to 9,803′, 5′ @ 10’/hr, WOB 20K, TFO 170L, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi; rotate 9,803′ to 9,957′, 154′ @ 28’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,400 Psi, Diff pressure 200 Psi; slide 9,957′ to 9,962′, 5′ @ 10’/hr, WOB 20K, TFO 130, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi; rotate 9,962′ to 10,051′, 89′ @ 25’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,400 Psi, Diff pressure 200 Psi; slide 10,051′ to 10,054′, 3′ @ 6’/hr, WOB 20K, TFO 130, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-250 Psi. Drilled to depth of 10,054′.

    08/10/14   slide 10,054′ to 10,056′, 2′ @ 8’/hr, WOB 20K, TFO 170, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150 Psi; rotate 10,056′ to 10,083′, 27′ @ 22’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 200 Psi, serviced rig, rotate 10,083′ to 10,178′, 95′ @ 32’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 200 Psi; slide 10,178′ to 10,183′, 5′ @ 7’/hr, WOB 20K, TFO 170L, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 100 Psi; rotate 10,183′ to 10,336′, 153′ @ 27’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-200 Psi; slide 10,336′ to 10,341′, 5′ @ 10’/hr, WOB 20K, TFO 170R, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 100 Psi; rotate 10,341′ to 10,400′, 59′ @ 21’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 150-200 Psi; slide 10,400′ to 10,406′, 6′ @ 8’/hr, WOB 20K, TFO 160L, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 100 Psi, Circ gas out from fracture @ 10,464′, casing pressure increased to 650 Psi, gas increased to 1,959 units, flare 25′-30′; rotate 10,496′ to 10,550′, 54′ @ 27’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 150-200 Psi. Drilled to depth of 10,550′.

    08/11/14   slide 10,557′ to 10,562′, 5′ @ 5’/hr, WOB 20K, TFO 160L, SPM 100, GPM 140 @ 2,300 Psi, Diff pressure 100 Psi, rig serviced, rotate 10,562′ to 10,660′, 98′ @ 33’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-200 Psi. Circ gas and oil from fracture @ 10,650′, casing pressure increased to 950 Psi, gas increased to 2,977 units, flare 20′ to 30′, rotate 10,660′ to 10,682′, 32′ @ 32’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-200 Psi, circ gas and oil out from fracture @ 10,682′, CSG pressure increased to 700 Psi, gas increased 2,500 units, flare 20′ to 30′, rotate 10,682′ to 10,715′, 33′ @ 33’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-200 Psi; slide 10,715 to 10,721′, 6′ @ 4’/hr, WOB 20K, TFO 160L, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150 Psi; rotate 10,721′ to 10,942′, 221′ @ 21’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 PSI, Diff pressure 150-200 Psi; slide 10,942 to 10,947′, 5′ @ 5’/hr, WOB 20K, TFO 169L, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150 Psi; rotate 10,947′ to 10,980′, 33′ @ 22’/hr, WOB 6K, RPM 60, SPM 100, GPM 140 @ 2,350 Psi, Diff pressure 150-200 Psi. Drilled to depth of 10,980′.

    08/12/14   Serviced rig, rotate 11,442′ to 11,479′, 37′ @ 37’/hr, WOB 6K, RPM 60, SPM 100, GPM 129 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,479′ to 11,485′, 6′ @ 4’/hr, WOB 20K, GPM 133 @ 2,400 Psi, TFO 125R, SPM 100, Diff pressure 150-200Psi; rotate 11,485′ to 11,574′, 89′ @ 30’/hr, WOB 6K, RPM 60, SPM 100, GPM 129 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,547′ to 11,580′, 6′ @ 6’/hr, WOB 20, GPM 133 @ 2,400 Psi, TFO 125R, SPM 100, Diff pressure 150-200 Psi; rotate 11,580′ to 11,637′, 57′ @ 23’/hr, WOB 6K, RPM, 60, SPM 100, GPM 129 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,637′ to 11,642′, 5′ @ 3’/hr, WOB 20K, GPM 133 @ 2,400 Psi, TFO 165R, SPM 100, Diff pressure 150-200 Psi; rotate 11,642′ to 11,664′, 22′ @ 44’/hr, WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi, Circulating gas 900 Psi on choke, rotate 11,664′ to 11,703′, 39′ @ 19.5’/hr, WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi, Circulate gas 950 Psi on choke, rotate 11,703′ to 11,733′, 30′ @ 20’/hr, WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,733′ to 11,735′, 2′ @ 4’/hr, WOB 20K, GPM 133 @ 2,400 Psi, TFO 180, SPM 100, Diff pressure 150-200 Psi; rotate 11,735′ 11,811′, 76′ @ 25.3’/hr, WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi. Drilled to depth of 11,811′.

    08/13/14   Circulate gas to lower casing pressure, rotate 11,811′ to 11,862′ (61′ @ 30.5’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,862′ to 11,869′ (7′ @ 47’/hr) WOB 20K, GPM 133 @ 2,450 Psi, TFO 170L, SPM 100, Diff pressure 150-200 Psi; rotate 11,869′ to 11,894′ (25′ @ 25’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,894′ to 11,901′ (7′ @ 3.5’/hr) WOB 20K, GPM 133 @ 2,450 Psi, TFO 170L, SPM 100, Diff pressure 150-200 Psi; rotate 11,901′ to 11,957′ (256′ @ 28’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 11,957′ to 11,962′ (5′ @ 3.3’/hr) WOB 20K, GPM 133 @ 2,450 Psi, TFO 160L, SPM 100, Diff pressure 150-200 Psi; rotate 11,962′ to 12,111′ (249′ @ 31.1’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 12,111′ to 12,116′ (5′ @ 2’/hr) WOB 20K, GPM 133 @ 2,450 Psi, TFO 160L, SPM 100, Diff pressure 150-200 Psi; rotate 12,116′ to 12,155′ (39′ @ 19.5’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,4580 Psi, Diff pressure 150-200 Psi. Drilled to depth of 12,155′.

    08/14/14   rotate 12,155′ to 12,166′ (11’@ 22’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; serviced rig, rotate 12,166′ to 12,176′ (10′ @ 20’/hr) WOB 6K, RPM 60, SPM 100, GPM 137 @ 2,450 Psi, Diff pressure 150-200 Psi; slide 12,176′ to 12,187′ (11′ @ 22’/hr) WOB 20K, GPM 126 @ 2,450 Psi, TFO 160L, SPM 100, Diff pressure 150-200 Psi; rotate 12,187′ to 12,460′ (10′ @ 20’/hr) WOB 6K, RPM 60, SPM 100, GPM 126 @ 2,450 Psi, Diff pressure 150-200 Psi; lost circulation @ 12,444′ regain circulation after 20 minutes pressure increased on motor. slow drill, circulating to POOH to 8,925 (casing shoe), POOH to casing shoe, mix 14# Pill to Kill well. Pump 22 BBLS w/ 800 STKS, well stable, POOH to look 2 motor drill string. Drilled to depth of 12,460′.

    08/14/14   POOH to change out motor, L/D bad motor, P/U new motor, check bit, test MWD, motor, TIH 67 STDS, work into first lateral, TIH 24 STDS to end of short lateral, POOH 120 STDS AOH DP, L/D 112 JTS, PH-6, LD BHA, pick up packer ON/OFF TIH 8824, set packer.

    08/15/14   Finish set packer, test to 1,000 Psi, Good, circulate hole with fresh water, set Kelly back, L/D AOH & PH-6DP, nipple down stack, install dry hole flange, RI, choke panel down kelly, hydraulic tongs tools, RD, clean pits slip drill line, prepare to move rig. Rig released @ 5:30 A.M

    09/1/14   The Longhorn drilling rig moved off location between August 19-21. We inspected and tested the production equipment and a decision was made to replace the “heater treater” which is the main piece of equipment that separates oil, gas and water. The existing tank battery was updated and another new tank was installed on August 28. A workover rig ran tubing into the packer and nippled up to the wellhead. Plans are to break the disk in the packer Wednesday, September 3 and start the flow back of the well. Depending on pressure, an acid job may be needed.

    Glossary of Terms

    Bbls:    barrels

    BOP:    Blow out preventor

    BHA:    Bottom hole assembly

    Christmas Tree:    Well head

    CO:    Clean out

    CSG:    Casing

    DC:    Drill collar

    DRLG:    Drilling

    DSA:    Drilling string assembly

    FE:    Float equipment

    FL:    Fluid loss The monitoring of the condition down hole in which water based drilling mud loses water in a highly permeable zone, causing the solids in the drilling fluid to build upon the wall of the borehole.

    FS:    Float shoe (piece of equipment)

    FW:    Fresh water

    GIH:    Going in hole

    GPM:    Gallons per minute

    IFL:    Initial fluid level

    Jts:    joints

    LD:    Laid down

    LWD:    Logging while drilling

    MI n RU:    Moved in and rigging up.

    MWD:    Measure while drilling

    ND:    Nipple down (the separation of two units)

    NU:    Nipple up (joining two units)

    PDC:    Poly-Crystalline Diamond Drill Bit. Varel International, Inc. is the Fifth largest manufacturer of drill bits in the world. The company’s operations around the world were recentlycertified for ISO 9001, a globally recognized achievement in quality standards.

    POOH:    Pulled out of hole.

    PP:    Pump pressure shows amount of pressure at which the fluid (drilling mud) is being pumped into the drill pipe.

    PS:    Pump stroke.

    PUP:    PUP joint (reduced sized tubing)

    RD:    Rig down

    ROP:    Rate of penetration

    RPM:    Revolutions Per Minute. Monitors how many times the drill pipe makes a revolution in a minute.

    RU:    Rigging up.

    SDON:    Shut-down overnight

    SI:    Shut-in

    SICP:    Shut-in casing pressure

    SION:    Shut-in overnight

    SIP:    Shut-in pressure

    SITP:    Shut-in tube pressure

    SPM:    Strokes per minute

    Survey:    Survey is the deviation of the hole from surface to depth at which survey is run. In other words it tells how straight the hole is.

    TIH:    Tripping in hole

    TOOH:    Tripping out of hole

    VIS:    Viscosity, indicates ability of fluid to flow. It is measured by using a certain size funnel and cup at the drilling rig and testing how quickly the cup fills up.

    WO:    Waiting on

    WOB:    Weight On Bit. 4 ½” drill pipe weighs approximately 16.6 lbs. per foot. If you have 7000’ of drill pipe in the drilling derrick the weight of your drill string is approximately 116,200 lbs. If the weight on the bit is 12,000 lbs. then the drilling derrick is “holding” 104,200 lbs.

    WOC:    Waiting on cement

    WT:    Weight of fluid (drilling mud) in the hole per gallon. Measured in pounds per gallon. Straight water is 8.3 lbs. Per gallon. Salt water is heavier. Drilling fluid often has additives or “weighted material” such as barite (barium sulfate) added to the drilling mud to increase its unit weight per gallon to better handle pressurized formations your drilling through.