Denex Petroleum Corporation

Daily Drilling Report

Well: Karickhoff No. 1 Permit No.: 47-097-03588
Contractor: SW Jack Rig No. 7 Spud Date: October 23, 2008
District/County: Warren/Upshur State: West Virginia
Report Date: 11/18/2008 Report Time: 5:00 PM

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Projected Operations: Well complete. Waiting on turn-in authorization from DTI.

Tuesday, November 18, 2008
From: To: Description of Operations
7:30 AM 10:00 AM Took gas sample. Analysis showed N2 under 4%.
10:00 AM 2:00 PM Plumbed well head to production unit. Adjusted regulators.
Monday, November 17, 2008
From: To: Description of Operations
8:00 AM 5:00 PM Had gas sample analyzed. Just over 5%. Opened well through 2". Shut in at 5:00 PM

Thursday, November 13, 2008
From: To: Description of Operations
12:00 AM 10:00 AM Left well open through 2" nipple.
10:00 AM 10:15 AM Found well blowing. Shut in. Removed 4 1/2" flowback nipple. Installed 4 1/2" x 2" swedge, tapped bull plug and sample bottle. Took fifth gas sample. Shut well in.
Wednesday, November 12, 2008
From: To: Description of Operations
12:00 AM 7:30 AM Left well open through 4 1/2" nipple.
7:30 AM 8:00 AM Found well blowing. Removed 4 1/2" flowback nipple. Removed frac valve. Installed 4 1/2" x 2" swedge, tapped bull plug and sample bottle. Took fourth gas sample. Shut well in.
8:00 AM 4:30 PM Plumbed well head to prepare to sell gas. Had Gas Measurement check sample. Found too high. Opened well through 2"
4:30 PM 11:59 PM Left well open through 2" to purge N2.
Tuesday, November 11, 2008
From: To: Description of Operations
12:00 AM 8:30 AM Left well open through 4 1/2" nipple.
8:30 AM 8:45 AM Found well blowing. Removed 4 1/2" flowback nipple. Installed 4 1/2" x 2" swedge, tapped bull plug and sample bottle. Took third gas sample. Shut well in.
8:45 AM 4:30 PM Installed production unit and plumbed to pipeline and tank. Had Gas Measurement check sample. Found too high. Opened well through 4 1/2"
4:30 PM 11:59 PM Left well open through 4 1/2" to purge N2
Monday, November 10, 2008
From: To: Description of Operations
12:00 AM 8:15 AM Left well open through 4 1/2" nipple.
8:15 AM 8:40 AM Found well blowing. Removed 4 1/2" flowback nipple. Installed 4 1/2" x 2" swedge, tapped bull plug and sample bottle. Took gas sample. Shut well in. Called to schedule pit treatment.
8:40 AM 10:30 AM Has Gas Measurement check sample. Too high. Returned to well. Casing had 195 psig. Took second gas sample. Removed swedge and re-installed 4 1/2" 45 degree flowback nipple. Opened well.
10:30 AM 11:59 PM Left well open through 4 1/2" to purge N2. Had Gas Analytical check second sample. Same result.
Sunday, November 9, 2008
From: To: Description of Operations
12:00 AM 11:59 PM Left well open through 4 1/2" nipple.
Saturday, November 8, 2008
From: To: Description of Operations
7:45AM 10:00 AM Well flowing throught 2".
7:45 AM 9:00 AM Found well gassing. Shut well in. Removed choke. Installed 4 1/2" 45 degree flow back nipple. Opened well. Dropped four soap sticks.
9:00 AM 11:59 PM Left well open through 4 1/2" nipple.
Friday, November 7, 2008
From: To: Description of Operations
5:45AM 7:05 AM Installed frac valve. Rigged up BJ. Tested lines, prepared to frac.
7:05 AM 7:40 AM Fractured Benson with 52,000 lbs. of 30/50 sand using 60 Q N2 foam. Formation broke at 2,384 psig and treated at an average rate of 28 bbls/minute and an average pressure of 3,528 psig. Pumped 30/50 sand at 1, 2, 2.5 and 3 lb./gallon. Flushed with 72 bbls of H20. ISIP was 2,058 psig. Five minute shut-in pressure was 1,690 psig. Total water pumped was 427 bbl (clean volume).
7:40 AM 8:55 AM Rigged down BJ. Waited on dozer (Kittle Excavating). Cut didtch from well head to pit. Cut ditch to drain tanks. Called SW Jack and Energy Contractors and asked them to retreive tanks. Installed flow back equipment and 1/2" choke.
8:55 AM 11:00 AM Opened well through 1/2" choke. Well made very little sand. Hauled (Denex truck) 100 bbl tank (Snyder Industries) to location. Delivered rebuilt meter (Gas Measurement) to location.
11:00 AM 12:00 PM Changed choke to 1.25". Opened well.
12:00 PM 1:00 PM Changed choke to 2". Opened well.
1:00 PM 11:59 PM Left well open through 2". SW Jack and Energy Contractors removed frac tanks from location.
Thursday, November 6, 2008
From: To: Description of Operations
8:15 AM 11:30 AM Weatherford rigged up logging truck and crane truck. Ran cement bond log tripping in hole, found cement top at 1,960' (top of Gantz). Total casing depth was 4,611'. Pulled correlation log. Perforated Benson with sixteen holes over six feet from 4,521'-4,527'. Rigged down Weatherford. Hauled production unit (Denex truck) to location.
Wednesday, November 5, 2008
From: To: Description of Operations
7:00 AM 4:30 PM Hauled production unit from Denex yard to well site. Picked up rebuilt Denex frac valve from McJunkin and delivered to well site. Energy Contractors moved 250 bbl tank to location. Hauled water to fill 250 bbl tank and to top off SW Jack 300 bbl tank. Picked up rebuilt orifice meter from James Dowell and hauled to location. Arranged for Kittle Excavation to deliver dozer to site on Friday, November 7. Confirmed perforators for 8 AM on Thursday, November 6 at 8:00 AM.
Tuesday, November 4, 2008
From: To: Description of Operations
7:00 AM 4:30 PM Hauled four 500' rolls of 2" plastic line pipe to location. Stretched and welded line from Karickhoff #1 wellsite to Douglas No. 1 well site. (Left on top of ground.) Installed tie-in at Douglas No. 1 well.
Wednesday, October 29, 2008
From: To: Description of Operations
12:00 AM 2:10 AM Drill 7 7/8" hole, soaping, carrying 1 1/2" stream of water. Reached TD of 4,653' at 2:10 AM.
2:10 AM 3:15 AM Clean hole.
3:15 AM 8:10 AM Tripping out of hole, laying down drill pipe. Gas check with 20 joints out showed 12/10ths H20 through 2" (146 mcf/day). Gas check at collars showed 20/10ths H20 through 2"(189 mcf/day).
8:10 AM 8:40 AM Prepare to log well. Rigged up Weatherford to log. Found fluid level at about 3,500'. Benson at about 4,500'. Temperature kick in Gantz? Uncertain as to source of natural gas shows.
8:40 AM 11:35 AM Logging well. Logger TD 4,627'. Rig down logger
11:35 AM 12:25 PM Prepare to run casing. Skid tub for power tongs. Rig up power tongs. Insert latchdown in shoe of bottom joint.
12:25 PM 3:10 PM  Ran 4,593.45' of new 10.5 lb./ft M-65 4 1/2" casing (McJunkin) with no baffles. Cement basket on joint 4 at 4,426'. Centralizers around Benson on Joints 1 (4,551'), 3 (4,468'), 5 (4,384) and and 8 (4,259'). Ran two centralizer around Gantz on Joints 62 (2,003) and 64 (1,920'). BJ arrived on location
3:10 PM 3:40 PM Rigged down power tongs. Rigged up BJ to cement casing.
3:40 PM 4:25 PM Cemented casing with 135 sx of Econofil ahead of 145 sx of 35/65/6 cement (35% Class A, 65% Fly Ash). Pumped 10 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. Pumped 72 bbl of Econofill slurry, followed by 48 bbl of 35/65/6 slurry. Shut down, washed out lines, picked up 12 bbl 15% HCl acid. Released plug. Displaced plug with acid amd treated displacement water. Plug landed at 71 bbls at 550 psig. Bumped pressure to 1,200 psig. Held for five minutes, then released.
4:25 PM 7:30 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 300 bbl SW Jack tank for frac job. Finished rigging down.
Tuesday, October 28, 2008
From: To: Description of Operations
12:00 AM 11:59 PM Drill 7 7/8" hole, soaping, carrying 1 1/2" stream of water. Rig was 3,605', soaping, drilling 30 minutes per kelly at 6:00 AM. Rig was 4,030', soaping, drilling 30 minutes per kelly at 3:00 PM. Rig was 4,435', soaping, drilling 30 minute per kelly at 9:55 PM.
Monday, October 27, 2008
From: To: Description of Operations
12:00 AM 11:59 PM Drill 7 7/8" hole, soaping, carrying 1 1/2" stream of water. Rig was in the top of the Fourth Sand at 2,450' at 6:00 AM. Had been drilling about 20-25 minutes per kelly. Slowed to 35 minutes per kelly in top of Fourth. Told rig to discontinue gas checks because of the volume of water. Rig was 3,249', soaping, drilling 30 minutes per kelly at 11:05 PM.
Sunday, October 26, 2008
From: To: Description of Operations
12:00 AM 11:59 PM Drill 7 7/8" hole, dusting, at 45 minutes per kelly. Found top of Big Lime at 1,660'. Rig was 1,716' at 8:25 AM. Picked up 1 1/2" stream of water in top of Gantz at 1,992'. Started soaping hole. Rig was 2,180' at 11:10 PM.
Saturday, October 25, 2008
From: To: Description of Operations
12:00 AM 5:30 AM Drilled 11" hole to TD of 1,154'.
5:30 AM 7:10 PM Tripped drill pipe and collars out of hole, prepared to run 8 5/8" surface casing.
7:10 AM 8:50 AM Ran 1,104.15' (25 joints) of new 20 lb./ft 8 5/8" surface casing (McJunkin) with spining rope, with three centralizers and canvas basket one joint down.
8:50 AM 10:00 AM Rigged up cementers (BJ), and pumped 260 sx of Class A cement with 3% calcium and 1/4 lb. cele-flake. Pumped 45 bbl of H2O ahead of job, 25 bbl gel pre-flush with flake, 5 bbl H20 spacer, and 65 bbl of slurry. Displaced cement with 74 bbl of H20, landed plug at 350 psi. Hole circulated early.
10:00 AM 8:00 PM Rig down cementers. Wait on cement.
8:00 PM 11:20 PM Nipple up on surface casing. Trip in hole, blowing water. Drilled cement and shoe.
11:20 PM 11:59 PM Drill 7 7/8 hole.
Friday, October 24, 2008
From: To: Description of Operations
12:00 AM 7:15 AM Drilled 11" hole with hammer bit. Hit 1/2" stream of water at 80'. Water increased to a 1" stream at 206'. Soaping hole. Rig was 390' at 6:40 AM.
7:15 AM 9:45 AM Tripped out hammer. Picked up 11" tricone. Trip in hole.
9:45 AM 11:59 PM Drilled 11" hole, soaping. Rig was 922' at 11:10 PM.
Thursday, October 23, 2008
From: To: Description of Operations
6:30 AM 5:45 PM Drilled rat hole/mouse hole. Drilled 52' of 15" conductor hole. Set one joint (44.15') of 11 3/4" conductor. Nippled up on conductor. Tallied surface pipe at 1,104', threads off.
5:45 PM 11:59 PM Drilled 11" hole with hammer bit.
Wednesday, October 22, 2008
From: To: Description of Operations
7:30AM 7:00 PM SW Jack moved rig to location, started rigging up. Loaded up conductor, surface casing, float equipmet pit liner from McJunkin. Waiting on water tank (Mike Ross has rig'swater tank on frac job.)
Monday, October 20, 2008
From: To: Description of Operations
8:00 AM 4:00 PM Measured pit at 70' X 35' X 10' deep. Too small. Decided to try to build second pit behind first pit to avoid boulders. Ordered four loads of 3" stone (Alcon) for road. Called McJunkin. Ordered 40' x 100' pit liner. (Will not line second pit until it is determined that pit will be used.) Ordered 1,100' of 20 lb./ft 8 5/8" surface casing and one canvas basket, three centralizers and a guide shoe for the surface casing. Ordered 4600' of 10.5 lb./ft M-65 casing (4 ½"). Ordered one 4 1/2" basket and eight 4 1/2" centralizers. Ordered male 8 5/8" x 4 1/2" wellhead and a flapper float shoe for the production pipe. Also ordered 1 - 4 1/2" x 2" XH swedge, 1 - 2" full port valve, 1 - 2" regular port valve, 1 - 2" solid bull plug, 1 - 2" XH nipple, 2 - tapped bull plugs, 2 - needle valves for tapped bull plugs. Measured second pit at 100' x 35'.
Friday, October 17, 2008
From: To: Description of Operations
7:30 AM 4:15 PM Worked on building location. Started pit. Hit large boulders in pit.
Thursday, October 16, 2008
From: To: Description of Operations
7:30 AM 4:30 PM Worked on building location and access road.
Wednesday, October 15, 2008
From: To: Description of Operations
8:00 AM 5:00 PM Kittle excavation moved Case 650 dozer and 120 excavator to location and started working on road and location.