Denex Petroleum Corporation

Daily Drilling Report

Well: Douglas No. 1 Permit No.: 47-097-03483
Contractor: SW Jack Rig 15 Spud Date: January 30, 2008
District/County: Warren/Upshur State: West Virginia
Report Date: 2/14/2008 Report Time: 10:00 AM
Projected Operations: Prepare to pump pit, backfill and install separator, tank, pipeline and meter.

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Thursday, February 14, 2008
From: To: Description of Operations
8:30 AM 8:45 AM Checked casing pressure. Found 1,325 pis.
Wednesday, February 13, 2008
From: To: Description of Operations
8:00 AM 8:45 AM Found well blowing hard through 4" at 8:00 AM. Checked volume, found 10/10ths H2O through 4", or 531 mcf/day (after being open almost 48 hours after frac). Shut well in, removed 4 1/2" flow nipple, installed 4 1/2" x 2" swedge, valve and needle valve. Took gas sample. Removed swedge, valve and needle valve. Removed frac gate. Installed 4 1/2" x 2" swedge and full port valve.
8:45 AM 12:00 PM Had gas sample analyzed, found N2 at 3.2%. Checked one hour casing pressure, found 900 psig. Met surface owner to review location of pipeline.
Tuesday, February 12, 2008
From: To: Description of Operations
8:00 AM 8:15 AM Found well blowing hard through 2" at 8:00 AM. Shut well in, removed choke, installed 4 1/2" x 2" swedge, valve and needle valve. Took gas sample. Removed swedge, valve and needle valve. Installed 4 1/2" 45 degree flow nipple.
8:15 AM 3:00 PM Flowed well though 4 1/2" flow nipple. Had gas sample checked, found N2 at 6.155%. Built risers for pipeline tie-in in Denex shop. Hauled line pipe, risers and Denex backhoe to location.
3:00 PM 11:59 PM Took gas sample at 3:00 PM, found N2 at 4.6%. Left well open overnight through 4 1/2" casing.
Monday, February 11, 2008
From: To: Description of Operations
5:30 AM 8:05 AM BJ arrived at 5:30 AM. Rigged up frac trucks (Fuzzy on Moovin' & Smoothin' Case tractor), prepared to fracture.
8:05 AM 9:05 AM Fractured Benson with 47,500 lbs. of 30/50 sand using 404,700 scf of Nitrogen (60 Q foam). Formation broke at 2,224 psig and treated at an average rate of 21.7 bbls/minute and an average pressure of 2,506 psig. Pumped 30/50 sand at 1, 2, 3 and 4 lb./gallon. Pressure dropped until 3 lb./gallon hit perfs, then leveled off. Pressure increased when 4 lb./gallon was near perfs, and steadily increased until sand ran out. Flushed with 70 bbls of H20. ISIP was 1,779 psig. Five minute shut-in pressure was 1,628 psig. Total water pumped was 316 bbl (clean volume).
9:05 AM 10:00 AM Shut valve in, rigged BJ down. Pumped remaining water from tank to pit, drained tank. Called S. W. Jack to retrieve tank. Installed 0.25" choke.
10:00 AM 10:45 AM Opened well through 0.25" choke. Made no sand, some water.
10:45 AM 12:30 PM Flowed well through 1/2" choke. Little sand returned. When water return decreased, changed choke.
12:30 PM 2:45 PM Flowed well through 1" choke, monitored sand return.
2:45 PM 4:25 PM Flowed well through 1.25" choke, monitored sand return.
4:25 PM   Opened well through 2". Left location.

Sunday, February 10, 2008
From: To: Description of Operations
9:45 AM 12:15 PM Weatherford arrived on location. While rigging up logging truck and crane truck, there was an electrical short and electrical fire in the truck's wiring. Pulled logging truck off location to facilitate pick-up by tow truck. Waited on replacement truck. Used dozer to drain location in hopes it would dry-up and/or freeze-up. Replacement truck became lost and was late.
12:15 PM 3:45 PM Rigged up replacement truck. Ran cement bond log tripping in hole, found cement top at 1,850'. Pulled correlation log. Perforated Benson with twenty holes over five feet from 4,403' to 4,408'. Finished perforating at 3:15 PM. Unloaded frac valve. Rigged down Weatherford.
Wednesday, February 6, 2008
From: To: Description of Operations
12:01 AM 3:15 AM Lay down drill pipe. Pulled one tub of pipe, shut down, checked gas. Had 90/10ths water through 2". Checked gas at large collars, could not measure through 2". Had almost 2/10ths through 7"(?).
3:15 AM 3:50 AM Waiting on logging truck.
3:50 AM 4:35 AM Rigging up logging truck (Allegheny/Weatherford).
4:35 AM 7:35 AM Logging well.
7:35 AM 8:40 AM Rig down logging truck. Prepare to run casing. Rig up power tongs (Bush.)
8:40 AM 11:15 AM Ran 107 joints (4,549') of new 10.5# M-60 4 1/2" casing (from McJunkin) with latch down in bottom. Set 10 centralizers on Joints 3, 5, 8, 34, 37, 44, 47, 52, and 55. Set one basket on Joint 6 at 4,294' just above Benson.
11:15 AM 11:40 AM Rigged up BJ to cement.
11:40 AM 11:55 AM Cemented casing with 368 sx of 35/65/6 cement (35% Class A, 65% Fly Ash). Pumped 30 bbl H20 ahead, then 25 bbl gel spacer, then 5 bbl H20 spacer, then 10 bbl Sure Bond pre-flush, then another 5 bbl H20 spacer. Started pumping cement slurry. Pumped 8 bbl and cementer failed. (Deck engine quit.)
11:55 AM 1:15 PM Waited on replacement cement truck.
 1:15 PM 2:05 PM Pumped balance of cement slurry. Released plug. Displaced plug with 12 bbl 15% HCl acid and 61 bbl of H20. Plug landed at proper displacement. Plug down at 1:55 PM. Held for five minutes, then released.
2:05 PM 5:30 PM Rigged down BJ. Installed 4 1/2" x 2" swedge with full port 2" valve. Poured diesel in top of valve to prevent freezing. Rig crew filled SW Jack tank with 500 bbl H2O for frac job. Finished rigging down. Moved some equipment off location.
Tuesday, February 5, 2008
From: To: Description of Operations
12:01 AM 9:40 PM Drilled 7 7/8" hole. Rig was 3,899' at 6:40 AM, soaping, drilling 30 minutes per kelly. Rig was 4,235' at 1:30 PM, soaping. Rig was 4,563' at 8:45 AM. soaping. Reaqched TD of 4,602' at 9:40 PM.
9:40 PM 10:40 PM Clean hole.
10:40 PM 11:59 PM Trip out of hole, lay down drill pipe.
Monday, February 4, 2008
From: To: Description of Operations
12:01 AM 11:59 AM Drilled 7 7/8" hole. Rig was 2,993' at 6:15 AM, soaping, drilling 32 minutes per kelly. Hauled two loads of 4" stone to cover first two culverts in road and to protect Denex pipeline. Rig was 3,280' soaping at 2:35 PM. Rig was 3,569 at 10:30 PM, soaping, drilling 40 minutes per kelly.
Sunday, February 3, 2008
From: To: Description of Operations
12:01 AM 11:59 PM Drilled 7 7/8" hole. Hit 1/2"-3/4" stream of water in bottom of Gantz at 1,935. Started soaping hole. Gas check at 6:30 AM at 2,068' showed no gas. Rig was 2,476', soaping, drilling 25 minute kellys at 4:40 PM. No apparent increase in water. Odor of gas at connection. Not taking gas checks in an effort to stay ahead of water. Rig was 2,686' at 10:35 PM, soaping, drilling 35 minutes per kelly.
Saturday, February 2, 2008
From: To: Description of Operations
12:01 AM 2:45 AM Waited on cement.
2:45 AM 11:59 PM Nippled up on surface casing. Tripped into hole. Rig was four stands off bottom at 6:25 AM. Drilled plug and cement. Started into new formation at 8:40 AM. Rig drilled 25 minute kellys to top of Big Lime at 1,613'. Rig was 1,617' at 6:05 PM, dusting.
Friday, February 1, 2008
From: To: Description of Operations
12:01 AM 2:10 PM Drilling 11" hole with tri-cone bit, soaping. Rig was 932' at 6:30 AM, soaping, drilling 42 minutes per kelly. Reached TD of 1,124' at 2:10 PM.
2:10 PM 3:45 PM Tripped out of hole. Ran 26 joints (1,044') of new 20# surface casing (8 5/8") with basket two joints from top, with shoe on bottom.
3:45 PM 6:35 PM BJ cemented surface casing with 275 sx of Class A cement with 3% calcium and 1/4 lb. flake. Plug down at 6:35 PM.
6:35 PM 11:59 PM Rigged down BJ. Waited on cement.
Thursday, January 31, 2008
From: To: Description of Operations
12:01 AM 12:15 PM Drilling 11" hole with hammer, soaping. Rig was 158' at 6:30 AM, soaping, drilling 75 minutes per kelly. Reached 350'. Tripped out, laid down hammer. J. F. Allen delivered one load of 4" stone. Spread stone over first two culverts on location road.
12:15 PM 11:59 AM Tripped in hole with 11" tri-cone bit. Drilling 11" hole, soaping, carrying 1/2" to 3/4" stream of water.

Wednesday, January 30, 2008
From: To: Description of Operations
6:30 AM 6:20 PM Graded road. Spotted rig and fuel trailer. Moved remainder of rig to location. Started rigging up. S. W. Jack hauling 8 5/8" casing, long joint of 11 3/4 and 80' X 120' pit liner (all from McJunkin) to location. Finished rigging up and preparing to drill.
6:20 PM 11:59 PM Spudded well. Drilled fill to 30'. Hard white shale from 30' to 35'. Hit 3/4" stream of water at 35'. Drilled to 40' and set 11 3/4" conductor. Picked up 11" hammer bit, started 11" hole.
Tuesday, January 29, 2008
From: To: Description of Operations
7:30 AM 6:00 PM Finished location, road and pit. Started moving rig. Rained all day, and location and road thawed out. Moved all loads to strip job road near location. Tried to move rig to location, and hung up in road. Tore differential out of rig.
Monday, January 28, 2008
From: To: Description of Operations
7:30 AM Worked to finish location, road and pit.
Saturday, January 26, 2008
From: To: Description of Operations
7:30 AM Finished pit. Worked existing road.
Friday, January 25, 2008
From: To: Description of Operations
7:30 AM 5:00 PM Finished grading location. Started on pit.
Thursday, January 24, 2008
From: To: Description of Operations
7:30 AM 5:00 PM Graded existing road. Grading location.
Wednesday, January 23, 2008
From: To: Description of Operations
2:00 PM 5:00 PM Moved dozer and excavator to location (Moovin' and Smoothin').