BASIC DATA REPORT - geoscience.nt.gov.au

SANTOS – TAMBORAN

COMPILED FOR

SANTOS LIMITED (A.B.N. 80 007 550 923)

MOUNTAIN VALLEY 1

BASIC WELL COMPLETION REPORT

PREPARED BY: Sam Dunstan

(Santos) November 2016

MOUNTAIN VALLEY 1

BASIC WELL COMPLETION REPORT

TABLE OF CONTENTS

PAGE

LOCATION MAP GENERAL DATA CARD SECTION 1: WELL HISTORY 1.1 INTRODUCTION 1 1.2 GENERAL DATA 2

1.3 DRILLING SUMMARY 3

SECTION 2: LITHOLOGICAL DESCRIPTIONS: 2.1 CUTTINGS DESCRIPTIONS 9 2.2 CORE DESCRIPTIONS 2.3 SIDEWALL CORE DESCRIPTIONS 2.4 CATALOGUE OF WELLSITE SAMPLES 2.5 HYDROCARBON SHOW REPORTS

SECTION 3: WIRELINE LOGGING REPORTS

3.1 LOGGING ORDER FORMS 3.2 FIELD ELECTRIC LOGGING REPORTS 3.3 ELECTRIC LOGGING TIME SUMMARIES 3.4 PRESSURE SURVEY RESULTS 3.5 MWD / LWD END OF WELL SUMMARY

SECTION 4: DAILY GEOLOGICAL REPORTS SECTION 5: DAILY DRILLING REPORTS SECTION 6: TIME vs DEPTH CURVE AND NPT SUMMARY SECTION 7: DRILLING FINAL WELL REPORT SECTION 8: RIG LOCATION SURVEY SECTION 9: COMPLETION DIAGRAM SECTION 10: DEVIATION SUMMARY SECTION 11: PRODUCTION TEST REPORT ENCLOSURE 1 WIRELINE LOGS ENCLOSURE 2 CORE PHOTOS

LOCATION MAP

YI

I

EP 162

EP 189

Flying Fox Creek 1

Mountain Valley 1

18 November 2016, File No. MCARTHUR 052

EP 189 - McArthur Basin

Santos

!

!

Mcarthur River

Katherine

133° 40' E

14

° 1

0' S

Mountain Valley 1

Certain data and information in this map is provided under license from third parties, including but not limited to Local Government Authorities and the Australian Federal and/or State Governments, and is subject to copyright and other intellectual property rights owned by orlicensed to such third parties. Santos has made every effort to ensure that the data and information in this map is accurate and up-to-date. However, Santos does not guarantee or warrant the accuracy, completeness or currency of, and takes no responsibility for any erroror omission relating to this map. In addition, Santos and its related bodies corporate accept no responsibility for errors or omissions relating to any data or information provided by third parties. The User acknowledges and accepts all limitations, including the fact that the data,information, and maps are dynamic and in a constant state of maintenance, correction and update. As such the currency of the map will be relevant to the date the map is printed. To the maximum extent permitted by law, Santos and its related bodies corporate will not beliable for any cost, loss or damage of any kind arising out of the use of this map. Users should not rely upon the map and are encouraged to make their own enquiries.

Mountain Valley 1

Location Map

Scale: 1:100,000

133° 45' E

14

° 1

5' S

0 1 2 3 4 5 Km

GENERAL DATA CARD

WELL DATA SUMMARY

WELLSITE GEOLOGIST Sam Dunstan / Paul McGilveray VERSION DATE November 2016 WELL NAME: Mountain Valley 1 Well SPUD : 24-08-2016, 15:30 Hours WELL CATEGORY: Stratigraphic Well Well TD : 29-08-2016, 17:45 Hours. WELL INTENT: Limmen & Dook Creek Sandstone RIG RELEASE: 31-08-2016, 17:00 Hours. SURFACE: LAT: 14° 09' 37.16” S (GDA 94) CMPLT: Plug & Abandon LONG: 133° 44' 15.43" E (GDA 94) RIG: Foraco Rig 12 SEISMIC STATION: Not located on Seismic line STATUS: Plugged & Abandoned ELEVATION GND: 143.4m AHD REMARKS:

TD called 10m below top of Jamberline Member, which came in 60.3 m high to prognosis. Well incurred considerable losses in Limmen Sandstone.

RT DATUM ELEVATION: 143.4 m AHD (Rig RT: 0.0m)

BLOCK/LICENCE: EP 189, Maiwok Sub basin ~ 25km SW of Broughton 1.

TD Driller: 156.6 m MD TD LOGGER: 153.13 m MD (Hung up on hole fill) HOLE SIZE CSG SIZE SHOE DEPTH TYPE

TYPE STRUCTURE: No Structure 12 1/4” 9 5/8” 8.6m 36 ppf K55, BTC

TYPE COMPLETION: Plug and Abandon: 4 cement plugs 8 1/2” 4 ½” 49.1m 11.6 ppf K55 ZONE(S): Primary: Limmen & Dook Creek Sandstone 96mm P & A 156.6m P & A

WIRELINE

Wireline Logging Summary

Log Suite / Run Depth Interval (m MD) BHT / TIME Remarks From To

GR 1 / 1 150.4m 5m Tool run within NQ string due to hole conditions. Hung up due to fill. GR response attenuated due to metal NQ

pipe.

Verticality 1 / 2 153.0m 5m Tool run within NQ string due to hole conditions.

Azimuth data inaccurate due to run through metal string. Hung up due to fill.

MWD / LWD

LOG SUITE / RUN INTERVAL (m) COMMENTS No MWD/LWD logging was conducted on Mountain Velley 1

AGE FORMATION OR ZONE TOPS DEPTH (m) THICKNESS HIGH (H)

MD TVD SS TVD (m) LOW (L) MESOPROTEROZOIC SURFICIAL DEPOSITS 0 143.4 4.0 - MESOPROTEROZOIC MAINORU FORMATION (NALLAWUN MEMBER) 4.0 139.4 44.0. 49.4 (H) MESOPROTEROZOIC LIMMEN SANDSTONE 48.0 95.4 25.3 50.4 (H) MESOPROTEROZOIC DOOK CREEK FORMATION 73.3 70.1 71.4 60.1 (H) MESOPROTEROZOIC POO4 MEMBER 73.3 70.1 - - MESOPROTEROZOIC JAMBERLINE MEMBER 144.7 -1.3 11.9+ 63.7 (H) TOTAL DEPTH 156.6 -13.2

SECTION 1 : WELL HISTORY

Santos Mountain Valley 1 – Basic Data Report Page 1 1.1 INTRODUCTION

Mountain Valley 1 is a stratigraphic well which makes up part of the 2016 Northern Territory exploration program with a focus on data acquisition to assist in understanding the petroleum systems, basin scale architecture and morphology of the McArthur Basin. The well is a permit commitment of the EP 189 Year Four work program. The stratigraphic well aims to investigate the occurrence of hydrocarbon shows encountered in the lowermost Roper Group units of the Broughton-1 petroleum exploration well (~25.0 km SW) and speculative source rock intervals in the Dook Creek Formation. This work is a part of the regional understanding of the greater McArthur Basin following on from the successful exploration well, Tanumbirini 1, drilled in EP 161 of the OT Downs Sub-basin, NT during Q2/Q3 2014 which targeted organic rich Meso-proterozoic Roper Group Shales. The petroleum system of the McArthur Basin is poorly understood due to the high complexity in constraining the stratigraphy, burial and maturation history. There are potentially four petroleum system in the basin, ranging from the Paleo-Proterozoic Tawallah to the Meso-Proterozoic Roper Group. Of relevance to Mountain Valley 1 is the speculative Nathan Group and proven Roper Group petroleum systems. Mountain Valley 1 is not a play tester. The technical objective of the well is to obtain geological data on the lower Roper Group and Mt Rigg Group stratigraphy and test the source rock element of the Nathan / Mt Rigg Group petroleum system. Rock samples obtained from Mountain Valley 1 will be utilised for geochemistry analysis to assist with proving up the source rock element. Mountain Valley 1 stratigraphic well is situated on the northern margin of the Maiwok Sub-basin (of the McArthur Basin) approximately 25 km to the SW of the Pacific O&G Broughton-1 well and 11 km W of the heritage BMR Urapunga-1 well. Both wells intersected the basal Roper Group sequence with no Velkerri Formation preserved at either locations. Broughton-1 being the most recent and deeper of the two wells, reached a total depth of 1,000 m in the Mt Rigg Group, unconformably under approximately 477 m of basal Roper Group sediment. The transition from the Mt Rigg Group to Roper Group is an erosional surface with the Limmen Sandstone and Mainoru Fm of the Roper Group showing a gradational basin evolution from an emergent fluvial system to commencement of a marine dominated system. The stratigraphic well is planned to be relatively shallow with a total depth of 350m, hence mitigating significant drilling costs via the use of adapted minerals drilling rigs. Utilising an adapted minerals drill/core rig will ensure minimal access track upgrading and related civil works, as well as relatively fast mobilisation and demobilisation. The technical objectives of Mountain Valley 1 is to obtain fresh rock samples of the Mt Rigg Group and basal Roper Group in order to constrain the stratigraphy, provenance and basin evolution history of the McArthur Basin. In addition provide rock samples for source and reservoir characterisations. Other objectives of Mountain Valley 1 include characterising the stratigraphy and source and reservoir characteristics of the lower Roper and Nathan Groups. The well is prognosed to penetrate a similar stratigraphic sequence as Broughton-1; Mainoru Fm (Roper Group) to Jamberline Sandstone (Mt Rigg Group). Core is to be taken and potentially sub sampled for RCA and organic geochemistry analyses. The well is not targeting a play and is not situated on a structure. Mountain Valley 1 is located approximately ~1km off Central Arnhem Road via an existing track, with the location chosen to reduce civil work costs and STO exposure to extra cost in the event of rain.

Santos Mountain Valley 1 – Basic Data Report Page 2 1.2 GENERAL DATA Well Name: MOUNTAIN VALLEY 1 Well Classification: Vertical Stratigraphic Well / Permit Commitment Interest Holders: Santos Ltd 50.0 / 100.0% (Voting / Investment) Tamboran 50.0 / 0.0% Operator: Santos Ltd. Location: McArthur Basin / Northern Territory

Surveyed Location: Latitude: 14° 09’ 37.16” South (GDA94) Longitude: 133° 44’ 15.43” East (GDA94) Northing: 8 434 175.48 m (GDA94) Easting: 363 759.68 m (GDA94) Seismic Location: No seismic available. Elevations: Ground Level: 143.4m AHD Rotary Table: 143.4 m AHD (Rig RT: 0.0m) Total Depth: Driller: 156.6 m MDRT Logger: 153.13 m MDRT (Hung up depth on hole fill) Status: Plug and Abandoned (P&A) License: EP-189 / Northern Territory Date Drilling Commenced: 15:30 hours on 24th August, 2016 Date Drilling Completed: 17:45 hours on 29th August, 2016

Date Rig Released: 17:00 hours on 31st August 2016 Total Well Time: 7 days 1 hour 30 minutes Contractor: Foraco Rig: Foraco 12

Santos Mountain Valley 1 – Basic Data Report Page 3

1.3 DRILLING SUMMARY (a) Drilling Summary (All Depths Driller’s RT) Results of drilling Mountain Valley 1 were as follows;

• Mountain Valley 1 was spudded at 15:30 hours on the 24th August, 2016. A 8 ½” pilot conductor hole was drilled to 8.6m, the hole was circulated clean and the drill string was pulled out of hole. A 12 ¼” bit was picked up and run to open up the hole to 8.6m where it was circulated clean and the drill string pulled out to surface.

• A 9-5/8” casing conductor pipe was rigged up and run (1 joint K55). The conductor casing was cemented as per programme and the shoe set at 8.6 m.

• Installed Diverter and Blooie line. • Made up 8 ½” surface hole BHA and ran in hole, drilled out cement plug and new formation down to

50.2 m MD. Pulled 8 ½” surface hole BHA out of hole. The bit was graded at 0-0-NO-A-X-I-RR-TD. • Once at surface, 8 joints of 4 ½” 11.6ppf K55 surface casing were run and cemented with a shoe depth

of 49.1m (11.9 bbls of 14.1 ppg cement slurry pumped and displaced with 2.24 bbls of fresh water). • BOPs were nippled up and pressure tested as per programme. • Made up 96mm HQ coring assembly and ran in hole. Performed well control drills at 40m. • Drilled out cement, float, shoe track, and 3.8 m of new hole to 54 m MD. Pulled drill string back to the

shoe, and performed Leak Off Test (EMW=21.64ppg). • Drilled ahead in 96mm HQ core hole from 54 m MD to 62.1 m MD retrieving core on wireline in 6m

intervals. • Lost circulation at 62.1m, pumped LCM. Drilled ahead in HQ core hole from 62.1m to 72.5m, lost

circulation. Pumped and circulated LCM at 72.5m to cure losses. Drilled ahead from 72.5m to 72.6m, lost circulation again, pumped and circulated LCM pill.

• Pulled HQ core assembly out of hole and ran in with NQ string to pump LCM pill at 72.6m to cure losses experienced in the Limmen Sandstone.

• Rigged up blind HQ coring assembly (coring ahead without returns whilst running water down the annulus to counter dynamic losses experienced in the Limmen sandstone). Drilled ahead in blind 96mm HQ core hole from 72.6m MD with wireline retrieval and continual fluid loss down hole. Experienced poor core retrieval and quality, with core losses of ~40% between 72.6m and 91m drilled interval.

• Drilled ahead in blind 96mm HQ core hole to 126.6m, rig ran out of water due to high drink rate, pulled 96mm HQ assembly to the shoe. Waited on water and continued to mix LCM-Frac seal in tanks. Ran 96mm HQ core assembly back in hole once water was delivered to rig site, washing down/reaming rods as necessary past obstructions at 62m and 69m to 126.6m MD.

• Drilled ahead in blind 96mm HQ core hole to a total depth of 156.6m MD retrieving core on wireline. • Mountain Valley 1 TD reached at 17:45 hrs on the 29/08/2016. • Circulated hole clean, pulled HQ core assembly to the shoe and pumped 2 LCM pills in attempt to cure

losses and monitored. Pulled 96mm HQ coring assembly out of hole to surface. • Made up NQ string, and ran in hole to TD. Encountered tight spot at 83m MD, worked and reamed

past. Pumped third LCM pill once at bottom and monitored losses. Rig ran out of water, pulled NQ string out to the shoe and well was temporarily shut in (static losses of 65 bbl/hr experienced prior to shut in). Waited on water.

• Received water deliveries. Ran in hole with NQ string to TD washing down and reaming where necessary.

• Rigged up to run Weatherford wireline through NQ string to TD. Ran wireline run 1: GR and run 2: Verticality through NQ string. Rigged down Weatherford wireline.

• Pulled NQ string out to the surface casing shoe, and ran back in hole without rotation or pumps to test hole conditions/tight spots prior to possible further wireline logging runs. NQ string rods hung up at 62m MD, multiple attempts were made to pass obstruction without success. Decision made to abandon further wireline logging. Pulled NQ string back to the surface casing shoe and pumped remaining LCM prior to plug and abandon. Pulled NQ string out of hole to surface.

• Mixed and pumped cement, set abandonment plug #1, #2, and #3. Waited on cement. Pressure tested cement plugs. Pumped surface plug. Nipple down BOPs. Removed wellhead. Installed P&A marker sign.

• Foraco Rig 12 was released at 17:00 hrs on the 31st of August, 2016 and moved to Marmbulligan 1.

Santos Mountain Valley 1 – Basic Data Report Page 4 (b) Mudlogging Services Mudlogging services were not employed on Mountain Valley 1. Sample catching and mudlog

construction was performed by two Santos wellsite geologists. The following parameters were recorded by the driller (Foraco) and the wellsite geologist:

1. Depth/Rate of Penetration. 2. Top drive RPM 3. Top drive Torque 4. Hook Load/Weight On Bit 5. Standpipe Pressure 6. Mud Pump Rate

Ditch cuttings were collected in surface hole only (continuous coring occurred during production hole) at:

• 3 m intervals from Surface to 50.2 m. Details of all wellsite samples are found in Section 2.4: CATALOGUE OF WELLSITE SAMPLES.

Additional sample analysis was not conducted on Mountain Valley 1.

(c) MWD / LWD Data

No Logging While Drilling (LWD) was performed on Mountain Valley 1.

TABLE 1: SUMMARY OF MWD / LWD RUNS

LOG SUITE / RUN INTERVAL (m) COMMENTS No LWD/MWD logging was conducted on Mountain Valley 1

(d) Testing

No Formation or Production Tests were run in Mountain Valley 1.

Santos Mountain Valley 1 – Basic Data Report Page 5 (e) Coring

One Wireline retrieved Full Hole Core (thirty runs) was taken at the Mountain Valley 1 location. Total: 50.2 m – 156.6 m; 106.4 m cut, 99.3 m recovered, 93.3% recovery. Core 1 Run 1: 50.2 m to 51.6 m (D); 1.4 m cut, 0.8 m recovered, 57.1% recovery. Core 1 Run 2: 51.6 m to 54.0 m (D); 2.4 m cut, 2.31 m recovered, 96.3% recovery.

Core 1 Run 3: 54.0 m to 54.6 m (D); 0.6 m cut, 0.6 m recovered, 100% recovery. Core 1 Run 4: 54.6 m to 58.6 m (D); 4.0 m cut, 4.02 m recovered, 100.5% recovery. Core 1 Run 5: 58.6 m to 59.3 m (D); 0.7 m cut, 0.8 m recovered, 114.3% recovery. Core 1 Run 6: 59.3 m to 59.6 m (D); 0.3 m cut, 0.3 m recovered, 100% recovery. Core 1 Run 7: 59.6 m to 62.0 m (D); 2.4 m cut, 2.4 m recovered, 100% recovery. Core 1 Run 8: 62.0 m to 63.6 m (D); 1.6 m cut, 0.9 m recovered, 56.3% recovery. Core 1 Run 9: 63.6 m to 69.6 m (D); 6.0 m cut, 3.5 m recovered, 58.3% recovery. Core 1 Run 10: 69.6 m to 72.6 m (D); 3.0 m cut, 4.03 m recovered, 134.3% recovery. Core 1 Run 11: 72.6 m to 73.6 m (D); 1.0 m cut, 1.8 m recovered, 180% recovery. Core 1 Run 12: 73.6 m to 75.4 m (D); 1.8 m cut, 1.33 m recovered, 73.9% recovery. Core 1 Run 13: 75.4 m to 78.6 m (D); 3.2 m cut, 1.8 m recovered, 56.3% recovery. Core 1 Run 14: 78.6 m to 80.9 m (D); 2.3 m cut, 0.5 m recovered, 21.7% recovery. Core 1 Run 15: 80.9 m to 84.6 m (D); 3.7 m cut, 2.05 m recovered, 55.4% recovery. Core 1 Run 16: 84.6 m to 88.7 m (D); 4.1 m cut, 3.95 m recovered, 96.3% recovery. Core 1 Run 17: 88.7 m to 93.6 m (D); 4.9 m cut, 4.5 m recovered, 91.8% recovery. Core 1 Run 18: 93.6 m to 97.0 m (D); 3.4 m cut, 3.4 m recovered, 100% recovery. Core 1 Run 19: 97.0 m to 102.6 m (D); 5.6 m cut, 5.65 m recovered, 100.9% recovery. Core 1 Run 20: 102.6 m to 108.6 m (D); 6.0 m cut, 6.05 m recovered, 100.8% recovery. Core 1 Run 21: 108.6 m to 114.6 m (D); 6.0 m cut, 6.09 m recovered, 101.5% recovery. Core 1 Run 22: 114.6 m to 120.6 m (D); 6.0 m cut, 6.02 m recovered, 100.3% recovery. Core 1 Run 23: 120.6 m to 126.6 m (D); 6.0 m cut, 6.55 m recovered, 109.2% recovery. Core 1 Run 24: 126.6 m to 132.6 m (D); 6.0 m cut, 5.94 m recovered, 99% recovery. Core 1 Run 25: 132.6 m to 134.9 m (D); 2.3 m cut, 2.31 m recovered, 100.4% recovery. Core 1 Run 26: 134.9 m to 138.3 m (D); 3.4 m cut, 3.37 m recovered, 99.1% recovery. Core 1 Run 27: 138.3 m to 144.4 m (D); 6.1 m cut, 6.15 m recovered, 100.8% recovery. Core 1 Run 28: 144.4 m to 150.5 m (D); 6.1 m cut, 6.08 m recovered, 99.7% recovery. Core 1 Run 29: 150.5 m to 154.6 m (D); 4.1 m cut, 4.0 m recovered, 97.6% recovery. Core 1 Run 30: 154.6 m to 156.6 m (D); 2.0 m cut, 2.1 m recovered, 105% recovery.

No sidewall core were cut on Mountain Valley 1.

(f) Biostratigraphy

No samples were sent for analysis.

Santos Mountain Valley 1 – Basic Data Report Page 6 (g) Electric Logging

One Suite of Electric Logs were performed as follows:

TABLE 2: ELECTRIC LOGGING SUMMARY

LOG SUITE / RUN INTERVAL (m) COMMENTS GR 1 / 1 150.4 – 5.0 Tool run within NQ string due to hole conditions. Hung up

due to fill. GR response attenuated due to metal NQ pipe. Verticality 1 / 2

153.0 – 5.0 Tool run within NQ string due to hole conditions.

Azimuth data inaccurate due to run through metal string. Hung up due to fill.

(h) Stethoscope Pressure Data

No Stethoscope Pressure Survey was performed in Mountain Valley 1.

(i) Hole Deviation Mountain Valley 1 was designed as a vertical well to intersect the primary objectives Limmen

Sandstone and Dook Creek Formation of the lower Roper and Nathan Groups. Maximum recorded deviation was 1.4° at 143 m, 146 m, 149m, 151m, and 152m. The well bore deviation was not monitored utilising Measurement While Drilling (MWD) surveys. Well bore tilt was analysed during wireline logging, utilising the verticality tool. The verticality tool was run through metal NQ rods and as unable to provide accurate azimuthal data due to magnetic interference, the maximum well displacement was not accurately determined. There was no target tolerance for Mountain Valley 1. Verticality data are presented in Section 3.2: Field Electric Logging Reports

(j) Velocity Surveys No velocity surveys were performed on Mountain Valley 1. (k) Casing and Cementing Summary The following Table 3 summarises casing sizes, depths and cementing details for Mountain

Valley 1. Casing and Cementing Reports for each casing run are detailed in Section 10: CASING & CEMENTING SUMMARY.

TABLE 3: CASING AND CEMENTING SUMMARY

BIT

SIZE DEPTH CASING SIZE

CASING DEPTH JNTS CASING

TYPE CEMENT

12 ¼” 8.6 m 9 ⅝” 8 m 1 36 lb/ft

K55, BTC 2.0 barrels of 14.0 ppg Class ‘GP’ cement.

8½”

50.2m 4 ½” 49.1 m

9 11.6 lb/ft K55, BTC

12 barrels of 14.1 ppg Class ‘GP’ cement.

96mm 156.6 m P&A - - - 14.4 barrels of 14.0 Class ‘GP’ cement. 4 plugs, 1 surface plug.

SECTION 2 : LITHOLOGICAL DESCRIPTIONS

SECTION 2.1: CUTTINGS DESCRIPTIONS

Santos Mountain Valley 1 – Basic Data Report Page 9

MOUNTAIN VALLEY 1 LITHOLOGICAL DESCRIPTIONS

Depths are referenced to Drillers Depth

0.0 m to 4.0 m INTERBEDDED SANDSTONE AND CLAYSTONE SANDSTONE: clear, translucent, opaque, red yellow iron staining, fine to

coarse, trace very coarse, moderately well to poorly sorted, dominantly sub angular to sub rounded, minor to common strong siliceous cement, trace argillaceous matrix, non-calcareous, friable to loose, hard aggregates, very poor to tight porosity, no fluorescence.

CLAYSTONE: red, red brown, purple red, yellow, firm to hard, trace hard yellow coated crust, trace micro-micaceous, blocky to sub blocky.

4.0 m to 8.6 m INTERBEDDED MUDSTONE AND CLAYSTONE MUDSTONE: grey olive green, red brown, argillaceous, trace to minor micro-

micaceous, grading to CLAYSTONE, very hard to hard, blocky to sub fissile. CLAYSTONE: red, red brown, yellow, trace micro-micaceous, firm to

moderately hard, blocky to sub fissile. 8.6 m to 48.0 m INTERBEDDED CLAYSTONE AND MUDSTONE MUDSTONE: grey olive green, red brown, argillaceous, trace to minor micro-

micaceous, grading to CLAYSTONE, firm to very hard, blocky to sub blocky. CLAYSTONE: red, red brown, trace micro-micaceous, firm to hard, blocky to

sub blocky, interbedded with SILTSTONE. 48.0 m to 50.2 m SANDSTONE WITH MINOR SILTSTONE SANDSTONE: clear, translucent, opaque, minor brown yellow translucent,

generally clean, fine to coarse, moderately sorted, dominantly sub angular to sub rounded, strong siliceous cement, trace quartz over growths, nil to trace visual matrix, well cemented, quartzitic to crystalline, trace sucrosic texture, rare carbonaceous fleck, very hard to hard, nil to trace tight visual porosity, no fluorescence.

SILTSTONE: red brown, grey green, argillaceous, trace to minor micaceous, hard to moderately hard, minor siliceous, sub blocky to blocky.

50.2 m to 73.3 m MASSIVE SANDSTONE WITH VERY MINOR INTERBEDDED

CLAYSTONE AND TRACE SILTSTONE. SANDSTONE: light to medium brown, light pink brown, light grey, clear to

translucent, opaque, very fine to medium, occasionally coarse to very coarse interbeds, moderately well sorted, poorly sorted in parts, dominantly sub angular to sub rounded, common very strong to strong siliceous cement, recrystallised grading to quartzite, trace siliceous matrix, trace yellow or grey green argillaceous matrix, trace quartz over growths, lithics in parts, rare carbonaceous fleck, occasional argillaceous, thin SILTSTONE/CLAYSTONE interbeds, very hard to hard sucrosic and crystalline sections, very hard to hard, trace friable, nil to trace tight visual porosity, no fluorescence.

CLAYSTONE: pale grey green, olive grey green, argillaceous, arenaceous in part-grading to SILTSTONE, trace micaceous, soft to firm, occasionally moderately hard, sub fissile to blocky, amorphous in part.

SILTSTONE: grey green, dark red brown, argillaceous, common arenaceous, common siliceous, trace micro-micaceous, trace metallic sheen, hard-moderately hard, sub fissile to sub blocky.

Santos Mountain Valley 1 – Basic Data Report Page 10 73.3 m to 144.7 m DOLOSTONE WITH THIN CLAYSTONE AND SILTSTONE

INTERBEDS DOLOSTONE: light brown to brown, light brown red, light grey, pink red

brown, sparitic, argillaceous in parts, arenaceous in parts, cryptocrystalline, common crystalline, sucrosic texture, trace to minor micro-micaceous, inclusions in conglomeritic mass, chert texture, very hard to hard, massive to blocky, thin SILT laminations in parts, nil porosity.

CLAYSTONE: olive grey green, green grey, argillaceous, grading to siltstone in parts, trace micro-micaceous, very weathered grading to clay, very soft to firm, sub fissile to blocky.

SILTSTONE: light to medium grey, dark grey, black, olive green grey, argillaceous, minor arenaceous in parts, trace dolomitic to calcareous, trace carbonaceous flecks, trace lithic, trace micromicaceous, thin carbonaceous SILTSTONE beds in dolostone, common siliceous, very hard to hard, firm in parts, fissile to sub blocky.

144.7 m to 156.6 m INTERBEDDED SILTSTONE AND SANDSTONE. SILTSTONE: dark grey, grey green argillaceous, non-calcareous, trace

carbonaceous fleck and thin laminations, common siliceous, rare pyrite, common conglomeritic in part with red brown CHERT clasts, off white chert sections, hard to very hard, blocky to sub fissile.

SANDSTONE: light grey, increasing pink-red, clear, translucent, opaque, very fine to medium, poor to moderately sorted, dominantly sub angular, very strong siliceous cement, trace calcareous/dolomitic, well cemented, common lithics and clast inclusions in parts, weathered in part, trace chert, rare pyrite, minor to common thin SILTSTONE interbeds, hard to very hard, quartzitic-crystalline, sucrosic texture in parts, nil visual porosity, massive, no fluorescence.

SECTION 2.2: CORE DESCRIPTIONS

One Wireline retrieved Full Hole Core (thirty runs) was taken at the Mountain Valley 1 location.

Total: 50.2 m – 156.6 m; 106.4 m cut, 99.3 m recovered, 93.3% recovery.

Core 1 Run 1: 50.2 m to 51.6 m (D); 1.4 m cut, 0.8 m recovered, 57.1% recovery. Core 1 Run 2: 51.6 m to 54.0 m (D); 2.4 m cut, 2.31 m recovered, 96.3% recovery.

Core 1 Run 3: 54.0 m to 54.6 m (D); 0.6 m cut, 0.6 m recovered, 100% recovery. Core 1 Run 4: 54.6 m to 58.6 m (D); 4.0 m cut, 4.02 m recovered, 100.5% recovery. Core 1 Run 5: 58.6 m to 59.3 m (D); 0.7 m cut, 0.8 m recovered, 114.3% recovery. Core 1 Run 6: 59.3 m to 59.6 m (D); 0.3 m cut, 0.3 m recovered, 100% recovery. Core 1 Run 7: 59.6 m to 62.0 m (D); 2.4 m cut, 2.4 m recovered, 100% recovery. Core 1 Run 8: 62.0 m to 63.6 m (D); 1.6 m cut, 0.9 m recovered, 56.3% recovery. Core 1 Run 9: 63.6 m to 69.6 m (D); 6.0 m cut, 3.5 m recovered, 58.3% recovery.

Core 1 Run 10: 69.6 m to 72.6 m (D); 3.0 m cut, 4.03 m recovered, 134.3% recovery. Core 1 Run 11: 72.6 m to 73.6 m (D); 1.0 m cut, 1.8 m recovered, 180% recovery.

Core 1 Run 12: 73.6 m to 75.4 m (D); 1.8 m cut, 1.33 m recovered, 73.9% recovery. Core 1 Run 13: 75.4 m to 78.6 m (D); 3.2 m cut, 1.8 m recovered, 56.3% recovery. Core 1 Run 14: 78.6 m to 80.9 m (D); 2.3 m cut, 0.5 m recovered, 21.7% recovery. Core 1 Run 15: 80.9 m to 84.6 m (D); 3.7 m cut, 2.05 m recovered, 55.4% recovery. Core 1 Run 16: 84.6 m to 88.7 m (D); 4.1 m cut, 3.95 m recovered, 96.3% recovery. Core 1 Run 17: 88.7 m to 93.6 m (D); 4.9 m cut, 4.5 m recovered, 91.8% recovery. Core 1 Run 18: 93.6 m to 97.0 m (D); 3.4 m cut, 3.4 m recovered, 100% recovery.

Core 1 Run 19: 97.0 m to 102.6 m (D); 5.6 m cut, 5.65 m recovered, 100.9% recovery. Core 1 Run 20: 102.6 m to 108.6 m (D); 6.0 m cut, 6.05 m recovered, 100.8% recovery. Core 1 Run 21: 108.6 m to 114.6 m (D); 6.0 m cut, 6.09 m recovered, 101.5% recovery. Core 1 Run 22: 114.6 m to 120.6 m (D); 6.0 m cut, 6.02 m recovered, 100.3% recovery. Core 1 Run 23: 120.6 m to 126.6 m (D); 6.0 m cut, 6.55 m recovered, 109.2% recovery.

Core 1 Run 24: 126.6 m to 132.6 m (D); 6.0 m cut, 5.94 m recovered, 99% recovery. Core 1 Run 25: 132.6 m to 134.9 m (D); 2.3 m cut, 2.31 m recovered, 100.4% recovery. Core 1 Run 26: 134.9 m to 138.3 m (D); 3.4 m cut, 3.37 m recovered, 99.1% recovery. Core 1 Run 27: 138.3 m to 144.4 m (D); 6.1 m cut, 6.15 m recovered, 100.8% recovery. Core 1 Run 28: 144.4 m to 150.5 m (D); 6.1 m cut, 6.08 m recovered, 99.7% recovery. Core 1 Run 29: 150.5 m to 154.6 m (D); 4.1 m cut, 4.0 m recovered, 97.6% recovery. Core 1 Run 30: 154.6 m to 156.6 m (D); 2.0 m cut, 2.1 m recovered, 105% recovery.

SECTION 2.3 : SIDEWALL CORE DESCRIPTIONS

No Rotary Sidewall Cores were attempted at Mountain Valley 1.

SECTION 2.4 : CATALOGUE OF WELLSITE SAMPLES

of 4

SAMPLE MANIFEST

WELL: Mountain Valley 1 RIG: Foraco Rig 12

SET A To: SANTOS C/o: Santos Regional Distribution Centre, Core library entrance, LOT 44,

Ocean Steamers Road Port Adelaide, 5015

From: Santos – Foraco Rig 12 Ph: (08) 8116 6235 Email: [email protected] 100g WASHED & DRIED SAMPLES

Box # Depth (m) Interval (m) 1 Spud – 50.2m 3m

TOTAL SANTOS BOXES: 1 CARDBOARD BOXES SAMPLE INTERVALS: Spud-50m MISSING SAMPLES: None Underweight samples: None. No Bagged cuttings 50m to TD. Samplex trays only. Santos Geologist: Paul Mc Gilveray Sam Dunstan

of 4

SAMPLE MANIFEST WELL: Mountain Valley 1 RIG: Foraco Rig 12 SET B To: NT Mines C/o: Core Facility Manager Darwin Department of Mines & Energy

38 Farrell Cresent, Winnellie NT 0820 PO Box 4550 Darwin NT 0801 Ph +61 8 8984 3036 Fax +618 8947 1544 Email: [email protected]

From: Santos – Foraco Rig 12 Ph: (08) 8116 6235 Email: [email protected] 150g to 200g WASHED & DRIED SAMPLES

Box # Depth (m) Interval (m)

1 Spud – 50.2m 3m TOTAL BOXES: 2 Sample Boxes SAMPLE INTERVALS: Spud-50m (3m) MISSING SAMPLES: None UNDERWEIGHT SAMPLES: None No Bagged samples 50m to TD - Cored. Samplex trays only. Santos Geologist: Paul Mc Gilveray Sam Dunstan

mailto:[email protected]

of 4

WELL: Mountain Valley 1 RIG: Foraco Rig 12

CORE TRAYS To: SANTOS C/o: Santos Regional Distribution Centre, Core library entrance, LOT 44,

Ocean Steamers Road Port Adelaide, 5015

From: Santos – Foraco Rig 12 Ph: (08) 8116 6235 Email: [email protected] CORE Trays: Pallet 1 (Tray 1 to 21)

Tray # Interval Tray # Interval (m) 1 50.2 – 53.9m 12 93.8 – 97.5m 2 53.9 – 57.6m 13 97.5 – 101.3m 3 57.6 – 61.2m 14 101.3 – 105.1m 4 61.2 – 64.7m 15 105.1 – 108.8m 5 64.7 – 68.3m 16 108.8 – 112.7m 6 68.3 – 72.0m 17 112.7 – 116.6m 7 72.0 – 75.4m 18 116.6 – 120.3m 8 75.4 – 82.5m 19 120.3 – 124.1m 9 82.5 – 86.0m 20 124.1 – 128.2m

10 86.0 – 90.0m 21 128.2 – 131.9 m 11 90.0 – 93.8m

PALLET 2 (Tray 22 to 28)

Tray # Interval Tray # Interval (m) 22 131.9 – 135.5m Drillers TD 156.6m 23 135.5 – 139.2m 24 139.2 – 142.8m 25 142.8 – 146.5m 26 146.5 – 150.1m 27 150.1 – 153.8m 28 153.8 – 154.8m

TOTAL CORE TRAYS: 28 Trays Santos WSG: Paul McGilveray Sam Dunstan

of 4

SAMPLE MANIFEST

WELL: Mountain Valley 1 RIG: Foraco Rig 12 SET C: To: SANTOS C/o: C/o: Santos Regional Distribution Centre, Core library entrance, LOT 44,

Ocean Steamers Road Port Adelaide, 5015 Santos office: 088116 7752

From: Santos – Foraco Rig 12 Ph: (08) 8116 6235 Email: [email protected] SAMPLEX TRAYS

Box # Depth (m) Interval (m)

1 Spud – 156m (TD) 3m TOTAL SAMPLEX BOXES: 1 SAMPLE INTERVALS: Spud-156m (3m) MISSING SAMPLES: None Santos WSG: Paul McGilveray Sam Dunstan TOTAL BOXES: 1 for Santos & NT Mines (Unable to Hand carry Samplex trays to town, Mountain Valley 1 Samplex trays are in same box as Flying Fox Creek 1)

SECTION 2.5 : HYDROCARBON SHOW REPORTS

No Hydrocarbon Fluorescence shows were observed during drilling operations at Mountain Valley 1.

SECTION 3: WIRELINE LOGGING REPORTS

SECTION 3.1 : SUITE 1 - LOGGING ORDER FORM

COMPANY: SANTOS & PARTNERS WSG:WELL: FIELD:RIG: STATE:LOCATION: BLOCK:GL: 140 m AHD AHD LICENCE:RT: 0 m AHD AHD LONGITUDE:Driller TD: 156.6m MDRT LATITUDE: 14° 09' 37.20'' S

8.5" 50.2m 49.1 GRADE/WT: 11.6 ppf K55 BTC 4" ID

3.875" (96mm) 156.6m 156.6m GRADE/WT:

0 GRADE/WT:

MUD TYPE: 6% KCL PolymerRm: Barite: 0.0% PV / YP: Rmf: VIS: 33 FL: 21.0Rmc: Wt: 8.5 Cl: 48K

pH: 10.5

Magnetic Marks: NDepth Control Doc reviewed: Y

From To SAMPLE RATESCS TD 2/ftTD SCS 4/ft

From ToTD SCSTD SCSTD SCSTD Surface

From ToTD SCSTD Surface

From ToTD SCSTD SCS

Presentation scales as per Santos Log Standard to be applied to all log runs.

Geology Operations Group

Logging Order FormA.B.N. 80 007 550 923

McArthur BasinForaco 12

P&A

0

Vertical well

30-8-16 @ 01:00 hrs

0

Expected maximum logging temperature at 40°C.

WELL INFORMATION

LOGGING PROGRAM:

DRILL STEM TEST INTERVAL/CORED INTERVAL:

GR

Log Speed

COMMENTS

ZONES OF INTEREST AND LOGGING SPEED

Dipmeter (XY caliper)

Curtailed

Main log 9m /min

Logs to be sent as individual runs and final log will be delivered as a composite of all runs

Record all depth shifting and measure wheel correction in remarks header

CurtailedTemp

No nuclear tools will be run in this wellCOMMENTS (TO BE INCLUDED IN REMARKS SECTION OF HEADER SHEET)

Run 3:

Log GR to surface on Run 1.Sonic to be tied to Runs 1 & 2 by visual insepction of markers and appling a depth shift as no GR available with sonic run.

CurtailedRun 2:

LOG INTERVALRun 1:

TD to surfaceTemp Curtailed

Repeat section on DownlogScales presented 1:200 and 1:500

Multi Channel Sonic

GR

Tight spots - 62-69m / Hung up 85m - reamed last trip / Loss rate - LCM pills in hole.

MUD DATA

HOLE CONDITIONS: (TIGHT SPOTS, DEVIATION, COALS, ETC)

Mountain Valley 1

133° 44' 15.60'' E

Maiwok Sub Basin

EP 189

Estimated pressure gradient 0.43 psi/ft

HOLE SIZE AND CASING

4.5"

Cored section 50.2m to 156.6m

DEPTH CONTROL

CurtailedDual Focused Resistivity

12m /min

OFFSET WELLS (All offset wells to be reviewed by WSG and Logging Engineer prior to job start) Well name: Broughton 1 : 25km SW / Urapunga 1 : 11km E

Curtailed

Sam Dunstan / P.Mc Gilveray

00

NT

Time of Last Circ :

Meiwok Sub Basin

TD to surface

Verticality

Downlog

NO REPEAT SECTIONS SHOULD BE RUN

A DOWNLOG OF THE NON PAD TOOLS WILL BE ACQUIRED AND USED TO CHECK TOOL

TENSION CURVE - TO BE DISPLAYED ON LOG FROM T.D. TO CASING SHOE.

ALL TIGHT HOLE IS TO BE REPORTED TO THE COMPANY MAN AND GEOLOGIST IMMEDIATELY

ALL CALIBRATIONS IN CASING MUST BE VERSUS DEPTH.

ALL THERMOMETER READINGS TO BE RECORDED ON LOG

ALL SCALES AND PRESENTATIONS TO CONFIRM TO STANDARDS UNLESS OTHERWISE ADVISED.

THE WELLSITE GEOLOGIST MUST BE IMMEDIATELY INFORMED.

LOGS SHOULD BE MARKED ON DEPTH OR OFF DEPTH.

ANY CHANGE FROM STANDARD PROCEDURES/SCALES TO BE NOTED IN REMARKS SECTION.

Rm, Rmf, Rmc and BHT MUST BE ANNOTATED ON LOGS.

Geo Las file 0.25m intervals Depth-GR-Caliper-Resistivitys-Sonic. 1:200 & 1:500 LOG SCALES PRESENTED / LAS - PRINTS OF LOGS

LOG DATA IS TO BE TRANSMITTED AS SOON AS POSSIBLE AFTER ACQUISITION. IF ANY DELAYS ARE LIKELY OR IF DATA TRANSMISSION WILL ADVERSELY EFFECT THE OPERATION THEN

REMARKS: (ALL OPERATIONS AS PER SANTOS OPERATING PROCEDURES)

REPEATABILITY. ENSURE LOGGING SPEED RUNNING IN HOLE IS SLOW ENOUGH TO OBTAIN GOOD DATA QUALITY.

THE FIELD/EDIT CD MUST BE A MERGED COPY OF ALL LOGS RUN

SECTION 3.2 : SUITE 1 – FIELD ELECTRIC LOGGING REPORTS

COMPANY: SANTOS & PARTNERS Arrive onsite:WELL: Company:RIG: Log Engineer: Time @ Rig down:LOCATION: Log Engineer: Time RIH:GL: 140 m AHD Log Engineer:RT: 0 m AHD Logging unit: 377Driller TD: Suite # 1 Run #: 1Loggers TD: BHT:Bit Size: Casing Size:

MUD TYPE: Stop Circ time : Time since last circ:Rm: Barite: PV / YP: Cl: 48KRmf: VIS: FL: 21Rmc: Wt: pH: 10.5

QC CHECK (See comments for each cell before completing)

Dipmete

r

(

XY

caliper )

Vertica

lity

Temp

GR

To 5 5From 153 150.4Scale Check Y Y Y YBefore/after Cals Y YCasing check Y Y Y YMud Data YMud Resistivity YDownlog Y Y Y YCasing Depth shift Y Y Y YLogging Speed Y Y Y YRepeatability Y Y Y YOffset check Y Y Y YAll curves on depth Y Y Y YData gaps N N N NNeutron EnvironDensity correctionCycle skippingRes shale overlay YTool Centralized Y Y Y YTool EccenteredSP presentation YSP Fish Location N/ASurvey Plot

DATE / TIME RIG UP / DOWN

TOOL CHECK

RIH / POOH

LOG DATA TX

LOST TIME

I. O. WIPER TRIP

LT OTHERS

OTHERS

9:00

9:30

10:00 XX

10:30 XX

11:00 XX

11:30 X

12:00

1.75 0.50 0.00 0.50 0.75 0.00 0.00 0.00 0.00 0.00 0.00

Tools did not reach bottom and hung up at 153.13m, believed to be due to hole infill.Log was run entirely through NQ drill string due to hole issues which caused GR log to data to be attenuated. Hole conditions prevented any further logging to be performed on Mountain Valley 1.

10:00 hrs Spotted 4WD10:10 hrs Began rigging up. 10:15 hrs Sheaves picked up & Held PJSM. 10:20 hrs Zero'd tools and Ran in hole.10:31hrs Tools hung up at TD 153.13m, began main uplog.

11:06 At SCS whilst RIH. 11:12 hrs Tagged TD at 153.13, begin main uplog11.22 At SCS. 11:27 Tools at surface. 11:29 Begin Rig down run 2-Verticality. 11:31 Sheaves down. 11:33 Rigged down.

6% KCL Polymer00

30/08/2016 0:30

Comments

8.5

30/08/2016

MUD DATA

10:10:00 AM

0.00

30/08/2016Nick Howlett 11:33:00 AM

0

3 7/8"

33

153.13m4 1/2" 10:31:00 AM 30/08/2016Max Log Temp:

0.00%

Time @ Rig up:

Time on Bottom:Lost Time Loggers:Lost Time Others:Logging Time:Total Log Time:

10.47 hrs at surface casing shoe. 10:54hrs tools at surface.10:57 Rigged down run 1:GR. 10:58 Rigged up run 2 Verticality. 11:00 hrs tools zero'd at surface. 11:01 Tool RIH

Mountain Valley 1 - Wireline Run 1: Verticality-GR

10 hrs 00 mins

DETAILED LOGGING TIME BREAKDOWNCOMMENTS / REMARKS

Field Electric Logging Report Geology Operations GroupA.B.N. 80 007 550 923

WELL INFORMATION

10:20:00 PM1.750.750.00

30/08/2016McArthur Basin

156.6m

Mountain Valley 1Foraco 12

P.McGilveray / S.DunstWSG:Weatherford

12:00:00 PM 29/08/2016

Duncan Hinton

Tool zero performed at surface, tools were run in hole and BLV performed.Casing shoe not able picked by loggers due to only gamma ray log being run.

TOTALS

REMARKS / RECOMMENDATIONS:

SECTION 3.3 : SUITE 1 – ELECTRIC LOGGING TIME SUMMARIES

COMPANY: SANTOS & PARTNERS Arrive onsite:WELL: Wait time:RIG: Nick HowlettLOCATION: Duncan Hinton Time @ Rig down:GL: 140 m AHD 0RT: 0 m AHD 377Driller TD:Loggers TD: 153.13m BHT: Max Log Temp:Bit Size: Casing Size:

Date Run # Logging TimeTotal Log

TimeRig

up/down30/08/2016 1 0.75 1.75 0.50

RUN 1:

Toolstring GR-Verticality

Lost time Loggers

Lost Time Others

0.00 0.00

Field Electric Logging Report Geology Operations

GroupA.B.N. 80 007 550 923

WELL INFORMATION

McArthur Basin 11:33:00 AM 30/08/2016Total Log Time: 1.75

Log Engineer:Log Engineer:

Mountain Valley 1 Weatherford 22 hrs 50 minsForaco 12 Time @ Rig up: 10:10:00 AM 30/08/2016

Company:

156.6m 1 Lost Time Others: 0.00Total Runs:

Plug and Abandon

WSG: P.McGilveray / S.Duns 12:00:00 PM 29/08/2016

0.00

Log Engineer:

Logging Time: 0.75Logging unit:

Lost Time Loggers:Rig up/down time: 0.5096mm

Final Lost Time Summary Remarks

no lost time

GR-Verticality

SECTION 3.4 : PRESSURE SURVEY RESULTS

No Pressure Survey was performed in Mountain Valley 1.

SECTION 3.5: MWD / LWD END OF WELL SUMMARY

No MWD/LWD logging or surveying was performed in Mountain Valley 1.

SECTION 4 : DAILY GEOLOGICAL REPORTS

Santos MOUNTAIN VALLEY 1 Page 1 of 2

DAILY GEOLOGICAL REPORT DGR 01

Date: 25th August 2016 Licence / State: EP 189 / Northern Territory Report Period: 06:00 - 06:00 Hours Rig: Foraco Rig 12

Days From Spud: 1 GL: 140 m (Preliminary) Current Hole Size: 8 ½” + 12 ¼” RT - GL: 0 m Depth @ 0600 Hrs: 8.6m MDRT RT: 140 m (Prelim) 8.6mTVD (131mSS)

PTD: 250m MDRT (110mSS)

24 Hr Progress: 8.6 m Spud Date: 15:30 hr, 24-8-16 Current Operation: Retrieving 9 5/8” conductor landing joint.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ m Surface Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= ppg Production 8 1/2” 4 ½”

Mud Data Type: Wt: Visc: WL: pH: KCl: Cl -: PV/YP: Rmf: 0:600hr KCL PHPA 9.8 41 ohmm @ 75°F

Bit Data No. Make Type Size Hours Metres Condition

1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD Last 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD

Surveys Type MD (m) Inclination Azimuth (T) TVD (m) Offset (m) Direction (T)

OPERATIONS SUMMARY

Previous 24 hrs Operations Summary: Completed rig move from Flying Fox Creek 1. Rigged up at Mountain Valley 1 location. Mixed spud mud, adding polymer and salt to build weight. Performed emergency response drills. Continued to rig up. Conducted pre-spud meeting. Spudded Mountain Valley 1 at 15:30hrs on 24 August 2016. Drilled 8 ½” pilot hole to 8.6m (abrasive drilling - possible boulder stones). Circulated the hole clean. Made up 12 ¼” bit and ran in hole, drilled and opened up hole size down to 8.6m. Circulated the hole clean. Rigged up and ran 1 joint of 9 5/8” conductor casing, hung up at 7.5m. Worked and washed conductor joint to bottom. Attempted to circulate, no go. Ran cement stinger to 7.5m, hung up, circulated, mixed and pumped 2 bbl 14 ppg cement slurry. Waited on cement. Installed 9” blooie line. Anticipated Operations: Install 9” diverter line. Make up 8 ½” BHA. Perform well control function tests - diverter & koomey drill. Drill out cement and 8 ½” surface hole to section TD at ~60m. Circulate hole clean. Pull out the hole. Nipple down diverter. Rig up and run 4 ½” surface casing. Circulate hole clean, cement casing as per programme. Wait on cement. Back out landing joint. Nipple up and pressure test BOP.



FORMATION TOPS -140m SS

FORMATION ACTUAL TOP High / Low High / Low PROGNOSED TOP (MDmRT) (MDmTVD) (TVDmSS) Prognosis Broughton 1 (MDmRT) (-m SS) Wooden Duck Member 4 4 136 NP - - - Mountain Valley Limestone 0 140 Nullawun Member 50 90 Limmen Sandstone -329 95 45 Dook Creek P004 -368 130 10 Jamberline Member 205 -65 TOTAL DEPTH 250 -110

HYDROCARBON SHOW SUMMARY INTERVAL (m) LITHOLOGY GAS – Peaks No Shows

GAS MD (m) Peak Background Chromatograph Trip Gas - - - -

GEOLOGICAL SUMMARY INTERVAL ROP (m/hr)

LITHOLOGY GAS (Peak / BG) Composition

0 – 4 m Av ROP: 4.3 m/hr Surface Pit excavation & Cuttings

SURFACE (Mainoru Fm / Showell Member) SANDSTONE: (40%) Clear, translucent, opaque, red & yellow staining (Fe), fine to coarse, trace very coarse moderately well to poorly sorted, dominantly sub-angular to sub-rounded, minor to common strong siliceous cement, trace argillaceous matrix, non-calcareous, friable to loose at top, hard aggregates, very poor to tight porosity, no fluorescence. CLAYSTONE: (60%) Red, red brown, purple red, yellow, firm to hard, trace hard yellow coated crust, trace micro-micaceous, blocky-sub blocky.

No Gas equipment

Wooden Duck Member 4mMD 4 – 8.6 m Av ROP: 4.3 m/hr

MUDSTONE. SILTSTONE (MUDSTONE): (30-50%) Grey olive green, red brown, argillaceous, trace to minor micro-micaceous, grading to CLAYSTONE, very hard to hard, blocky to sub fissile. CLAYSTONE: (70-50%) Red, red brown, yellow, trace micro-micaceous, firm to moderately hard, blocky to sub fissile.

No Gas equipment

REMARKS: 1. Rig up Foraco 12. Perform emergency response drills. Perform pre spud checks. 2. Spudded Mountain Valley 1, 24-8-16 @ 15:30hrs. 3. Drilled ahead in 8 ½” pilot conductor hole to 8.6 m TD, circulated hole clean and pulled drill string and BHA

out of hole. Picked up 12 ¼” bit and opened up a 12 ¼” pilot conductor hole to 8.6 m TD. Rigged up and ran 1 x 9-5/8” conductor joint.

4. Mixed quick set cement and set plug and cement. Waited on cement.




Days From Spud: 2 GL: 140 m (Preliminary) Current Hole Size: 8 ½” RT - GL: 0 m Depth @ 0600 Hrs: 50.2m MDRT RT: 140 m (Prelim) 50.2mTVD (90mSS)


24 Hr Progress: 41.6 m Spud Date: 15:30 hr, 24-8-16

TD Date:

Current Operation: Rigging up to run 4 ½” surface casing.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ m Surface Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= ppg Production 8 1/2” 50.2 4 ½” 11.6 lb/ft K-55

Mud Data Type: Wt: Visc: WL: pH: KCl: Cl -: PV/YP: Rmf:

0:600hr KCL PHPA 9.0-9.2 36-40 ohmm @ 75°F

Bit Data No. Make Type Size Hours Metres Condition 1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD

Last 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD Current 3 NOV PDC FT616 8 ½” 6.25 41.6 0-0-NO-A-X-I-RR-TD


OPERATIONS SUMMARY

Previous 24 hrs Operations Summary: Waited on cement. Installed 9” diverter and Blooie line. Made up 8 ½” BHA. Performed well control function tests – diverter & koomey. Drilled out cement, and drilled ahead in 8 ½” surface hole to 13m. Conducted a rig safety meeting. Performed a rig service. Continued drilling 8 ½” surface hole from 13m to 50.2m section TD, average 6.7 m/hr with connections. Circulated the hole clean. Pulled out of the hole. Nippled down the diverter. Rigged up to run 4 ½” surface casing. Anticipated operations: Run 4 ½” surface casing. Circulate the hole clean, cement casing as per programme. Wait on cement. Back out landing joint. Nipple up and pressure test BOP.



FORMATION TOPS -140m SS

FORMATION ACTUAL TOP High / Low High / Low PROGNOSED TOP

(MDmRT) (MDmTVD) (TVDmSS) Prognosis Broughton 1 (MDmRT) (-m SS) Wooden Duck Member - - - - - Mountain Valley Limestone - - 0 140 Nullawun Member 4 4 136 46m H 50 90 Limmen Sandstone 49 49 91 46m H 95 45 Dook Creek P004 130 10 Jamberline Member 205 -65 TOTAL DEPTH 250 -110

HYDROCARBON SHOW SUMMARY INTERVAL (m) GAS – Peaks No Shows

GAS MD (m) Peak Background Chromatograph Trip Gas - - - -

GEOLOGICAL SUMMARY INTERVAL ROP (m/hr)

LITHOLOGY GAS (Peak / BG) Composition

NULLAWUN MEMBER 4mMD 8.6 – 49 m Av ROP: 6.7 m/hr

Interbedded CLAYSTONE & MUDSTONE SILTSTONE (MUDSTONE): (40-20%) Grey olive green, red brown, argillaceous, trace to minor micro-micaceous, grading to CLAYSTONE, firm to very hard, blocky to sub blocky. CLAYSTONE: (60-80%) Red, red brown, trace micro-micaceous, firm to hard, blocky to sub blocky, interbedded with SILTSTONE.

No Gas equipment

LIMMEN SANDSTONE 49mMD 49 m – 50.2 m Av ROP: 6.7 m/hr

SANDSTONE with minor SILTSTONE. SANDSTONE: (50-60%) Clear, translucent, opaque, minor brown yellow translucent, generally clean, fine to coarse, moderately sorted, dominantly sub angular to sub rounded, strong siliceous cement, trace quartz over growths, nil to trace visual matrix, well cemented, quartzitic to crystalline, trace sucrosic texture, rare carbonaceous fleck, very hard to hard, nil to trace tight visual porosity, no fluorescence. SILTSTONE: (50-40%) Red brown, grey green, argillaceous, trace to minor micaceous, hard to moderately hard, minor siliceous, sub blocky to blocky.

No Gas detected (hand held Gas detectors)



4. Mixed quick set cement and set plug and cement. Waited on cement. 5. Installed Diverter and Blooie line. 6. Made up 8 ½” surface hole BHA. Perform well control function tests – diverter & koomey drills. 7. Drilled out cement and drilled ahead in 8 ½” surface hole to 50.2m MD. 8. Circulated hole clean, pulled drill string and 8 ½” surface hole BHA out of hole. 9. Began rigging up to run 4 ½” surface casing.




Days From Spud: 3 GL: 140 m (Preliminary) Current Hole Size: 8 ½” RT - GL: 0 m Depth @ 0600 Hrs: 50.2m MDRT RT: 140 m (Prelim) 50.2mTVD (90mSS)


24 Hr Progress: 0 m Spud Date: 15:30 hr, 24-08-16 Current Operation: Performing well control drills at 40m whilst RIH with 96mm HQ core assembly.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ m Surface Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= ppg Production 8 1/2” 50.2 4 ½” 11.6 lb/ft K55 49.1m

Mud Data Type: Wt: Visc: WL: pH: KCl: Cl -: PV/YP: Rmf: 0:600hr KCL PHPA 9.2 36-40 ohmm @ 75°F

Bit Data No. Make Type Size Hours Meters Condition

1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD

Last 3 NOV PDC FT616 8 ½” 6.25 41.6 0-0-NO-A-X-I-RR-TD Current 4 Boart Longyear Core 9UMX 3 7/8” - - IN


OPERATIONS SUMMARY Previous 24 hrs Operations Summary: Rigged up and ran 8 joints of 4 ½” surface casing. Circulated the hole clean. Mixed and pumped cement as per program (11.9 bbl @ 14.1 ppg cement slurry and displaced with 2.24 bbls of fresh water). 4 ½” surface casing shoe set at 49.1m. Waited on cement. Backed out landing joint. Installed casing head. Nippled up and pressure tested BOP. Made up 96mm HQ core assembly. Ran in hole 96mm HQ core assembly to 40m. Anticipated operations: Drill out cement, float, shoe track, and 3m of new formation. Pull back to casing and retrieve core barrel on wireline. Perform leak off test. Drill ahead in 96mm HQ core hole to 250 m MD or to 10 m below top of Jamberline Formation.



FORMATION TOPS FORMATION ACTUAL TOP High / Low PROGNOSED TOP

(MDmRT) (MDmTVD) (TVDmSS) Prognosis (MDmRT) (-m SS) Mountain Valley Limestone - - 0 140 Nullawun Member 4 4 136 46m H 50 90 Limmen Sandstone 49 49 91 46m H 95 45 Dook Creek P004 130 10 Jamberline Member 205 -65 TOTAL DEPTH 250 -110

HYDROCARBON SHOW SUMMARY INTERVAL (m) GAS – Peaks

No Shows

Gas MD (m) Peak Background Chromatograph Trip Gas - - - -

GEOLOGICAL SUMMARY INTERVAL ROP (m/hr) LITHOLOGY GAS (Peak / BG)

Composition



4. Mixed quick set cement and set plug and cement. Waited on cement. 5. Installed Diverter and Blooie line. 6. Made up 8 ½” surface hole BHA. Perform well control function tests – diverter & koomey drills. 7. Drilled out cement and drilled ahead in 8 ½” surface hole to 50.2m MD. 8. Ran 4 ½” casing (8 Joints) set shoe at 49.1m. Cemented as per program (11.9 bbl @ 14.1 ppg cement

slurry and displaced with 2.24 bbls of fresh water). 9. Nippled up and pressure tested BOP. 10. Made 96mm coring assembly and ran in hole. Performed well control drills at 40m.




Days From Spud: 4 GL: 140 m (Preliminary) Current Hole Size: 96mm RT - GL: 0 m Depth @ 0600 Hrs: 72.6m MDRT RT: 140 m (Prelim) 72.6mTVD (90mSS)


24 Hr Progress: 22.4 m Spud Date: 15:30 hr, 24-08-16 Current Operation: Running in hole NQ drill string to 72.6m to spot LCM pill to cure losses over

fractured sandstone.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ m Conductor Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= 21.64 ppg Surface Hole 8 1/2” 50.2 4 ½” 11.6 lb/ft K55 49.1m Production Hole 96mm P&A - - -


Bit Data No. Make Type Size Hours Metres Condition 1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD

Last 3 NOV PDC FT616 8 ½” 6.25 41.6 0-0-NO-A-X-I-RR-TD Current 4 Boart Longyear Core 9UMX 3 7/8” - 22.4 IN


OPERATIONS SUMMARY Previous 24 hrs Operations Summary: Completed well control drills at 40m. Drilled out cement, float, shoe track, and 1.4m of new formation to 51.6 m MD. Pulled out of hole to inspect bit due to no progress, ran back in hole. Drilled ahead 2.4m of new formation to 54.0 m MD. Pulled back to casing and retrieved core barrel on wireline. Performed Leak Off test, EMW= 21.64ppg. Drilled ahead in 96mm HQ core hole from 54.0 m to 62.1 m MD, average 2.2 m/hr including connections. Cored and retrieved smaller sections due to packing off by fractured core blocking flow. Lost circulation at 62.1m, pumped LCM pills. Continued to core 96mm HQ core hole from 62.1m to 72.5m, average 2.3 m/hr. Experienced losses, circulated and pumped LCM to cure losses. Cored ahead from 72.5m to 72.6m, lost circulation again, circulated and pumped LCM pills. Pulled HQ core string out of the hole. Made up NQ string and ran in hole in hole to 72.6m to pump LCM pill. Anticipated operations: Circulate LCM pill with NQ string until losses are cured, pull NQ string out of hole. Run in hole with HQ core string and drill ahead in 96mm HQ core hole to 250 m MD or to 10 m below top of Jamberline Formation.



FORMATION TOPS

FORMATION ACTUAL TOP High / Low PROGNOSED TOP (MDmRT) (MDmTVD) (TVDmSS) Prognosis (MDmRT) (-m SS) Wooden Duck Member - - - - Mountain Valley Limestone - - 0 140 Nullawun Member 4 4 136 46m H 50 90 Limmen Sandstone 49 49 91 46m H 95 45 Dook Creek P004 130 10 Jamberline Member 205 -65 TOTAL DEPTH 250 -110


No Shows



Composition LIMMEN SANDSTONE 50.2 m – 72.6 m Av ROP: 1.9 – 5 m/hr. Cored Section

Massive SANDSTONE, with very minor interbedded CLAYSTONE, trace SILTSTONE. SANDSTONE: Light to medium brown, light pink brown, light grey, clear to translucent, opaque, very fine to medium, occasionally coarse to very coarse interbeds, moderately well sorted, poorly sorted in parts, dominantly sub angular to sub rounded, common very strong to strong siliceous cement, recrystallised grading to quartzite, trace siliceous matrix, trace yellow or grey green argillaceous matrix, trace quartz over growths, lithics in parts, rare carbonaceous fleck, occasional argillaceous SILTSTONE/CLAYSTONE thin interbeds, very hard to hard sucrosic and crystalline sections, very hard to hard, trace friable, nil to trace tight visual porosity, no fluorescence. Very fractured-broken core. Lost circulation 62.1m, 72.5m and 72.6m. CLAYSTONE: Pale grey green, olive grey green, argillacous, arenaceous in part-grading to SILTSTONE, trace micaceous, soft to firm, occasionally moderately hard, trace thin beds argillaceous clay silty grey green matrix, sub fissile to blocky, amorphous in part. SILTSTONE: Grey green, dark red brown beds, argillaceous, common arenaceous, common siliceous, trace micro-micaceous, trace metallic sheen, hard-moderately hard, sub fissile to sub blocky.







slurry and displaced with 2.24 bbls of fresh water). 9. Nippled up and pressure tested BOP. 10. Made 96mm coring assembly and ran in hole. Performed well control drills at 40m. 11. Drilled out cement, float, shoe track and 3.8m of new hole to 54 m MD. Performed Leak Off test, EMW=

21.64ppg. 12. Drilled ahead in 96mm HQ core hole from 54 m to 62.1m. 13. Lost Circulation at 62.1m, pumped LCM. Drilled ahead in HQ core hole from 62.1m to 72.5m, lost


14. Pulled HQ core string out of hole and ran in NQ core string to pump LCM pill at 72.6 m to cure losses.




Days From Spud: 5 GL: 140 m (Preliminary) Current Hole Size: 96mm RT - GL: 0 m Depth @ 0600 Hrs: 126.6m MDRT RT: 140 m (Prelim) 126.6m TVD (14mSS)


24 Hr Progress: 54m Spud Date: 15:30 hr, 24-08-16 Current Operation: Waiting on water before coring 96mm HQ hole.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ 54m Conductor Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= 21.64 ppg Surface Hole 8 1/2” 50.2 4 ½” 11.6 lb/ft K55 49.1m Production Hole 96mm P&A - - -


Bit Data No. Make Type Size Hours Metres Condition 1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD 3 NOV PDC FT616 8 ½” 6.25 41.6 0-0-NO-A-X-I-RR-TD

Last 4 Boart Longyear Core 9UMX 3 7/8” 12.5 22.4 TBG Current 5 Boart Longyear Core 9UMX 3 7/8” 13.5 54 TBG


OPERATIONS SUMMARY Previous 24 hrs Operations Summary: Pulled NQ drill string out of hole. Ran in HQ core string, attempted to pump but lost circulation. Received permission to blind core remainder of Limmen Sandstone (run water down the annulus whilst pumping mud through drill pipe to counter dynamic losses experienced in the sandstone). Rigged up water tanks for blind HQ coring. Drilled ahead in HQ core hole from 72.6m to 94.5m MD. Performed a rig service. Cored from 94.5m to 126.6m with losses down hole, averaging 4 m/hr with connections. Experienced poor core retrieval and quality with core losses of ~40% between 72.6m and 91.0m drilled interval. Ran out of water (drink rate on annulus of ~2000-3000 ltrs/hr) and stopped coring at 1.15am. Mixed LCM and frac-seal and pumped down-hole whilst waiting on water, pulled drill string out to the shoe. Continued to mix mud and service rig whilst waiting on water. Anticipated operations: Wait on water. Run in the hole to 126.6m and drill ahead in 96mm HQ core hole to 250 m MD or to 10 m below top of Jamberline Formation.




(MDmRT) (MDmTVD) (TVDmSS) Prognosis (MDmRT) (-m SS) Wooden Duck Member - - - - Mountain Valley Limestone - - 0 140 Nullawun Member 4 4 136 46m H 50 90 Limmen Sandstone 49 49 91 46m H 95 45 Dook Creek P004 73.6 73.6 66.4 56.4 H 130 10 Jamberline Member 205 -65 TOTAL DEPTH 250 -110


No Shows



Composition LIMMEN SANDSTONE 50.2 m – 73.6 m Av ROP: 1.9 – 5 m/hr. Cored Section

Massive SANDSTONE, with very minor interbedded CLAYSTONE, trace SILTSTONE. SANDSTONE: Light to medium brown, light pink brown, light grey, clear to translucent, opaque, very fine to medium, occasionally coarse to very coarse interbeds, moderately well sorted, poorly sorted in parts, dominantly sub angular to sub rounded, common very strong to strong siliceous cement, recrystallised grading to quartzite, trace siliceous matrix, trace yellow or grey green argillaceous matrix, trace quartz over growths, lithics in parts, rare carbonaceous fleck, occasional argillaceous SILTSTONE/CLAYSTONE thin interbeds, very hard to hard sucrosic and crystalline sections, very hard to hard, trace friable, nil to trace tight visual porosity, no fluorescence. Very fractured-broken core. Lost circulation 62.1m, 72.5 and 72.6m. CLAYSTONE: Pale grey green, olive grey green, argillacous, arenaceous in part-grading to SILTSTONE, trace micaceous, soft to firm, occasionally moderately hard, trace thin beds argillaceous clay silty grey green matrix, sub fissile to blocky, amorphous in part. SILTSTONE: Grey green, dark red brown beds, argillaceous, common arenaceous, common siliceous, trace micro-micaceous, trace metallic sheen, hard-moderately hard, sub fissile to sub blocky.





Composition DOOK CREEK P004 73.6 m – 126.6m Av ROP: 3 – 12 m/hr. Cored Section

DOLOSTONE with thin CLAYSTONE and SILTSTONE interbeds. DOLOSTONE: light brown-brown, light brown red, light grey, pink red brown, sparitic, argillaceous in parts, arenaceous at top of formation, cryptocrystalline, common crystalline, sucrosic texture, trace to minor micro-micaceous, inclusions in conglomeritic mass at top, chert texture, very weathered toward top of section, very hard to hard, massive to blocky, thin SILT laminations in parts, nil porosity. CLAYSTONE: olive grey green, green grey, argillaceous, grading to siltstone in parts, trace micro-micaceous, very weathered grading to clay, very soft to firm, sub-fissile to blocky. SILTSTONE: dark grey, black, green grey, argillaceous, minor arenaceous in parts, trace dolomitic-calcareous, trace carbonaceous flecks, trace lithic, trace micro-micaceous, thin carbonaceous SILTSTONE beds in dolostone, common siliceous, very hard to hard, firm in parts, fissile to sub blocky, common thin SILTSTONE interbeds with depth.

No Gas detected (hand held Gas detectors).







14. Pulled HQ core string out of hole and ran in NQ core string to pump LCM pill at 72.6 m to cure losses. 15. Rigged up blind 96mm HQ coring, drilled ahead from 72.6 m. 16. Experienced poor core retrieval and quality with core losses of ~40% of between 72.6m and 91m drilled

interval. Continual fluid loss down-hole. 17. Cored to 126.6m. Wait on water. Continued to mix LCM-Frac seal in tanks. Pulled out to the shoe.




Days From Spud: 6 GL: 140 m (Preliminary) Current Hole Size: 96mm RT - GL: 0 m Depth @ 0600 Hrs: 156.6 m MDRT RT: 140 m (Prelim) 156.6 m TVD (14mSS)


24 Hr Progress: 30m Spud Date: 15:30 hr, 24-08-16 TD Date: 17:45 hr, 29-08-16 Current Operation: Waiting on water.

Casing Data Hole Sz Depth (m) Casing Size Wt: Type Shoe Depth (m) LOT @ 54m Conductor Hole 12 1/4” 8.6 9 5/8” 36 lb/ft K55 8m EMW= 21.64 ppg Surface Hole 8 1/2” 50.2 4 ½” 11.6 lb/ft K55 49.1m Production Hole 96mm 156.6 P&A - - -


Bit Data No. Make Type Size Hours Metres Condition 1 BAKER PDC Q504FX 8 ½” 2 8.6 0-2-NO-A-X-I-RR-TD 2 SMITH PDC MD1616 12 ¼” 1.25 8.6 0-0-NO-A-X-I-RR-TD 3 NOV PDC FT616 8 ½” 6.25 41.6 0-0-NO-A-X-I-RR-TD 4 Boart Longyear Core 9UMX 3 7/8” 12.5 22.4 TBG

Last 5 Boart Longyear Core 615197 3 7/8” 20.25 84 TBG


OPERATIONS SUMMARY Previous 24 hrs Operations Summary: Waited on water. Ran back in hole washing down/reaming rods as necessary past obstructions at 62m and 69m MD, to 126.6m MD. Drilled ahead in 96mm HQ core hole from 126.6m MD to a Total Depth of 156.6m MD retrieving core on wireline. Mountain Valley 1 reached TD at 17:45 hrs on the 29/08/2016. Circulated hole clean. Pulled out HQ coring assembly to the shoe, pumped two LCM pills and monitored losses each time, pulled HQ core string out of hole. Made up NQ string, ran in hole with NQ string, encountered tight spot at 83 m MD, worked and reamed through. Continued to run NQ string to TD and pumped third LCM pill and monitored hole losses. Running low on water. Pulled out the hole to the shoe and shut in well. Static losses of 65 bbls/hr experienced prior to shut in. Waited on water. Anticipated operations: Attempt to cure losses. Rig up and perform Weatherford wireline, 3 runs whilst monitoring water losses. Run 1: Dipmeter-XY Caliper-Verticality-Temp-GR. Run 2: Dual Resistivity-GR. Run 3: Multi Sonic-Temp. Rig down Weatherford wireline. Run in hole NQ cement string, Plug & Abandon well.




(MDmRT) (MDmTVD) (TVDmSS) Prognosis (MDmRT) (-m SS) Wooden Duck Member - - - - Mountain Valley Limestone - - 0.0 140.0 Nullawun Member 4.0 4.0 136.0 46.0 H 50.0 90.0 Limmen Sandstone 49.0 49.0 91.0 46.0 H 95.0 45.0 Dook Creek P004 73.6 73.6 66.4 56.4 H 130.0 10.0 Jamberline Member 145.1 145.1 -5.1 59.9 H 205.0 -65.0 TOTAL DEPTH 156.6 156.6 -16.6 250.0 -110.0


No Shows



Composition DOOK CREEK P004 73.6 m – 145.1 m Av ROP: 4.9 – 8.6 m/hr. Cored Section

DOLOSTONE with thin CLAYSTONE and SILTSTONE interbeds. DOLOSTONE: light brown-brown, light brown red, light grey, pink red brown, sparitic, argillaceous in parts, arenaceous at top of formation, cryptocrystalline, common crystalline, sucrosic texture, trace to minor micro-micaceous, inclusions in conglomeritic mass at top, chert texture, very weathered toward top of section, very hard to hard, massive to blocky, thin SILT laminations in parts, nil porosity. CLAYSTONE: olive grey green, green grey, argillaceous, grading to siltstone in parts, trace micro-micaceous, very weathered grading to clay, very soft to firm, sub-fissile to blocky. SANDSTONE: SILTSTONE: Light to medium grey, dark grey, black, olive green grey, argillaceous, minor arenaceous in parts, trace dolomitic-calcareous, trace carbonaceous flecks, trace lithic, trace micro-micaceous, thin carbonaceous SILTSTONE beds in dolostone, common siliceous, very hard to hard, firm in parts, fissile to sub blocky.


JAMBERLINE MEMBER 145.1 m – 156.6m Av ROP: 4.2 – 7.4 m/hr. Cored Section

Interbedded SILTSTONE and SANDSTONE SILTSTONE: Dark grey, increasing grey green argillaceous, non-calcareous, trace carbonaceous fleck and thin laminations, common siliceous, rare pyrite, common conglomeritic in part with red-brown CHERT clasts, off white chert sections, hard to very hard, blocky to sub fissile. SANDSTONE: Light grey, increasing pink-red, clear, translucent, opaque, very fine to medium, poor to moderately sorted, dominantly sub-angular, very strong siliceous cement, trace calcareous/dolomitic, well cemented, common liths-clast inclusions in parts, weathered in part, trace chert, rare pyrite, minor to common thin SILTSTONE interbeds, hard to very hard, quartzitic-crystalline, sucrosic texture, nil visual porosity, massive, no fluorescence.











interval. Continual fluid loss down-hole. 17. Cored to 126.6m. Wait on water. Continued to mix LCM-Frac seal in tanks. Pulled out to the shoe. 18. Ran back in hole to 126.6m MD, washing down rods past obstructed zones as necessary. Drilled ahead in

blind 96mm HQ core hole from 126.6m MD to Total Depth of 156.6m MD, retrieving wireline as necessary. 19. Mountain Valley 1 TD reached at 17:45 hrs on the 29/08/2016. 20. Circulated hole clean. Pulled HQ coring assembly out of the shoe and pumped two LCM pills. Pulled HQ

coring assembly out of hole. Made up NQ assembly and ran in hole to TD, pumped third LCM pill. Ran low on water due to static losses of 65 bbls/hr. Pulled NQ string to the shoe and shut in well, waited on water.



Date: 31st August 2016 Licence / State: EP 189 / Northern Territory Report Period: 06:00 - 06:00 Hours Rig: Foraco Rig 12



24 Hr Progress: 0m Spud Date: 15:30 hr, 24-08-16 TD Date: 17:45 hr, 29-08-16 Current Operation: Waiting on cement.






OPERATIONS SUMMARY Previous 24 hrs Operations Summary: Waited on water. Received go forward plan for logging, ran in hole with NQ string to TD washing down and reaming where necessary. Rigged up to run Weatherford wireline through NQ string to TD. Ran wireline Run 1: GR and Run 2: Verticality through NQ string. Rigged down Weatherford. Pulled NQ string to the surface casing shoe. Attempted to run NQ string back to TD without rotation or pumping to test hole condition for possible obstructions/tight hole for further logging runs. NQ string hung up at 62m MD, multiple attempts made to pass obstruction with no success. Informed town, decision taken to cancel further logging runs. Pulled back NQ string to the surface casing shoe and pumped remaining LCM prior to plug & abandon. Set abandonment Plugs #1, #2 and #3. Waiting on cement. Anticipated operations: Wait on cement. Pressure test cement plug. Nipple down BOPs. Remove casing/well head. Install P&A marker sign. Release rig Foraco 12 from Mountain Valley 1 and move rig to Marmbulligan 1.






No Shows


GEOLOGICAL SUMMARY

INTERVAL ROP (m/hr) LITHOLOGY GAS (Peak / BG)

Composition











21. Ran in hole with NQ string to TD. Acquired wireline Run 1 (GR) and Run 2 (Verticality) through drill pipe. 22. Pulled NQ string to surface casing shoe and attempted to RIH to TD. Hung up at 62m, multiple attempts

to pass obstruction – no success. Made decision to cancel further logging runs. 23. Pulled back NQ string to surface casing and pumped LCM pill. 24. Set abandonment Plug #1, #2 and #3.



Date: 1st September 2016 Licence / State: EP 189 / Northern Territory Report Period: 06:00 - 06:00 Hours Rig: Foraco Rig 12



24 Hr Progress: 0m Spud Date: 15:30 hr, 24-08-16 TD Date:

Rig Released: 17:45 hr, 29-08-16 17:00 hr, 31-08-16

Current Operation: Rig down and rig move to Marmbulligan 1.






OPERATIONS SUMMARY Previous 24 hrs Operations Summary: P & A operations. Pressure tested cement plug. Nippled Down BOPs. Removed wellhead. Installed P&A marker sign. Released rig at 17:00hrs on 31 August 2016 to Marmbulligan 1. Anticipated operations: Rig down at Mountain Valley 1 and move rig to Marmbulligan 1.






No Shows


GEOLOGICAL SUMMARY

INTERVAL ROP (m/hr) LITHOLOGY GAS (Peak / BG)

Composition











21. Ran in hole with NQ string to TD. Acquired wireline Run 1 (GR) and Run 2 (Verticality) through drill pipe. 22. Pulled NQ string to surface casing shoe and attempted to RIH to TD. Hung up at 62m, multiple attempts

to pass obstruction – no success. Made decision to cancel further logging runs. 23. Pulled back NQ string to surface casing and pumped LCM pill. 24. Set abandonment Plug #1, #2 and #3. 25. Rig release Mountain Valley 1 at 17:00hrs on 31 August 2016.

SECTION 5 : DAILY DRILLING REPORTS

Onshore Daily Drilling Report

Well Name Report No Report DateDays from SpudTotal Days

Mountain Valley 1 1 0.46 0.46 23 Aug 2016

Well Data

AustraliaCountry: Day Supv: Andrew Muckersie Hole Size: Last Casing Size: n/a

Business Unit: EASTERN AUSTRALIA Night Supv: - Current MD: Last Casing MD: n/a0.00 (m)

Field/License: EP 189/EP 189 Office Engineer: Thivanka Dedigama Current TVD: Last Casing TVD: n/a0.00 (m)

ExplorationWellbore Type: Drilling Contractor: Faraco Australia Pty Ltd 24 Hr Progress: Last Casing Weight: 0.00 (m)

Rig Name: Faraco Rig 12 Rig Manager: William Titley Last BOP Test: Last Casing Grade:

RT to GL: 0.00 (m) Next Planned BOP Test:

140.00 (m)GL Elevation: 14° 9' 37.200 SLatitude: FIT/LOT (EMW):

Plan TD (MD): 350.00 (m) Longitude: 133° 44' 15.600 E

Plan TD (TVD): 350.00 (m) Weather Forecast:

Last Rig Move Distance: 7.60 (km)

AFE no.: 5603057 Expected Rig Release: Days since Last Rig Recordable Injury: 15 (days)

AFE Total Cost: $ 1,544,788.00 Days since Last Rig Recordable Spill: Next Well: Marmbulligan 115 (days)

Supplemental AFE total: $ Next Rig Move Dist (km): 650.00 (km)

Daily Cost: $ 349,941.93 Transport Company: Neil Mansell Transport

Cumulative Total Cost: $ 349,941.93

Loading out Main Camp to Mountain Valley 1.Current Ops@0600:

24-Hr Summary: Rig Released from Flying Fox 1 at 11:00 hrs. Loaded out Foraco Rig to 100%. Spotted Foraco Rig to 100% at Mountain

Valley to 18:00 hrs. Rigged up under lights.

24-Hour Planned Ops: Rig mvoe Main Camp.

EHS Summary: No HSE incidents.

Time Summary 00:00 to 24:00 for 23 Aug 2016

Phase Task Activity Class From To Dur

(hr)

Depth

(m)

Operation

PS RM MOB P 11:00 18:00 7.00 0.00 Rig Release from Flying Fox Creek 1 at 11:00hrs.

Loaded out Rig to 100%.

Spotted Rig to 100% at Mountain Valley 1.

Rigged down rig site offices and prepared camp for next day load out .

PS RM RU P 18:00 0:00 6.00 0.00 Crew rigged up at Mountain Valley 1 location under lights.



(hr)

Depth

(m)

Operation


Mixed 175 bbls of 6% KCL & phpa/polymer spud mud into mud pits 1 & 2.

Added 10ppb Cellplug & Fracseal medium to help mud pits seal. Lost ~20 bbls

to mud pit seepage.

Performance Summary

Cumulative WellDaily

P U NPT P U NPT Total

Hrs%Hrs%Hrs%Hrs%Hrs%Hrs%Hrs

13.00 100.00 0.00 0.00 0.00 0.00 13.00 0.00 0.00 0.00 0.00 100.00 13.00

Daily Cost

Cost

($)

Task NameTask Number

191,333.00

10 Time (Overheads) 76,357.86

20 Administration 3,200.00

30 Rig /Frac Operation 31,000.00

40 Materials/Equipment & Logistics 79,350.00

50 Supplier/Services 6,880.00

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops

Actual vs Prognosed / DescriptionTVD top (m)MD top (m)FormationInterval no.

0.000.00Mountain Valley Limestone1

50.0050.00Nullawun Member2

95.0095.00Limmen Sandstone3

25/08/2016 12:00:46PM 1




Formation Tops


130.00130.00Dook Creek – POO44

250.00205.00Jamberline Mbr5

Cum Mud Cost: Mud Cost Today: Fluid Data $ 0.00$ 0.00

Viscosity: Mud desc.: Low Range RheologyH2O:

Mud Type: PV: ReadingRPMOil:

Sample Location: YP: 600Sand:

Sample Depth: Gels 10 sec: 300NaCL:

Sample Time: Gels 10 min: 200Drilling Solids:

Weight: Gels 30 min: 100Solids Corrected:

ECD: 6API Fluid Loss:

Temp.: 3Filter cake:

HTHP- FL:

HTHP FC:

HGS:

LGS:

Comments:

Solid Control, Volumes, Losses and Cuttings Data

Volume Tracking

Drill Water VolumesLossesUsable Volume Mud Delivered to Site:

0.0 (bbl)Delivered: Downhole: Active: 0.0 (bbl) Mud Returned to Base:

Used in Mud: 0.0 (bbl)Shakers: Mixing: 0.0 (bbl) Excess Cement Sent for Disposal: 0.0 (bbl)

0.0 (bbl)Used for Cement: Discharged: 0.0 (bbl)Hole: Cuttings

Used for Dust: 0.0 (bbl)De-Sander: Slug: 0.0 (bbl) 0.0 (bbl)Initial On Site:

Used to Kill Well: 0.0 (bbl)De-Silter: Reserve: 0.0 (bbl) Daily Generated:

Centrifuge: Kill: 0.0 (bbl) Removed From Site:

0.0 (bbl)Total On Site:

Solids Control Equipment

Shaker Description Deck no. Mesh Size Hours run

0.00 0.00

HoursRPMDescriptionCentrifuge

Bulk Stocks - Rig

UnitsProduct name Quantity start Received Usage Adjusted Quantity endReturned

Pumps

Slow Circulating Rates

TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary

DescriptionType CountEvent

Hazard Card Behavioural Observation 13 Driving to new location x 4. Exclusion Zones x 2. Operate forklift x 3. Mixing Mud x

2. Spotting loads x 2.

Inspection Other 2 Foraco Pre-start/shift Inspection Diamond or Multi Purpose Drilling Rig checklists

completed.

Procedure Reviewed 2 Drill site site setup.

Time Out for Safety Stop the Job 5 Santos Interventions: Exclusion Zones x 2. Spotter for forklift x 2. Bunded pallets.

Toolbox Talk Pre/Post-Tour Meeting 2 Held pre-tour safety meetings with both crews, 3rd party personnel attended both

pre-tour meetings.

Verification Points

CommentsVerified ByVerified DateStatusVerification Point

25/08/2016 12:00:46PM 2




Personnel On Board

No. of peopleCompany name

Foraco Australia Pty Ltd 10

Mansell Bulk Haulage 2

Oil Industry Catering & Services 3

Royal Flying Doctor Service Of Australia 1

Santos 5

Weatherford Australia 2

Total Pax 23

Comments

Water Source: Mountain Valley G Bore. Pump was turned off on 15th Aug. Turned on 19th Aug. (locking gate due to signs of unauthorised access).

Mountain Valley J Bore available as a back-up source but requires a gen set to be activated.

Road watering Mountain Valley 1 lease and entry road.

Pedro Neale (Santos DS) offsite scouting for 2017 campaign.

25/08/2016 12:00:46PM 3




Well Data

AustraliaCountry: Day Supv: Andrew Muckersie 12.250 (in)Hole Size: Last Casing Size: n/a









Last Rig Move Distance: 7.60 (km)






Retrieving 9-5/8" Conductor Landing Joint. (sample firm).Current Ops@0600:

24-Hr Summary: Rig Moved Main Camp. Last load spotted at Mountain Valley at 08:30 hrs. Completed Pre-Spud work scope. Spudded

Mountain Valley 1 at 15:30 hrs. Drilled, cased & cemented 9-5/8" Conductor.

24-Hour Planned Ops: WOC. Retrieve landing joint. Install 9" Diverter & Blooie line. RIH 8.5" BHA. Well Control function tests & Drill. Drill 8.5" Surface

Hole.

EHS Summary: No HSE incidents



(hr)

Depth

(m)

Operation


Mixed 175 bbls of 6% KCL & phpa/polymer spud mud into mud pits 1 & 2.

Added 10ppb Cellplug & Fracseal medium to help mud pits seal. Lost ~20 bbls to

mud pit seepage.

PS RM MOB P 6:00 8:30 2.50 0.00 Move main camp & rig site office from Flying Fox 1 to Mountain Valley 1.

Road train combination:

1) 2 x sleepers.

2) 1 x kitchen & 1 x sleeper.

3) 1 x laundry/gen & 1 x sleeper.

4) 1 x SPU & 1 x rig site office.

Last load spotted at Mountain Valley 1 location at 08:30 hrs.

PS RM RU P 8:30 15:30 7.00 0.00 Rigged up Main Camp & Rig Site Offices.

Completed lease clean up at Flying Fox 1 location.

Completed general rig up items.

Conducted Drops Inspection of Mast.

Raised Mast.

Conducted Earth Impedence tests.

OCR witness interlock function test.

(jib winch, haul winch, core winch crown stops. Pipe arm interlocks. Spin cage

interlock. Topdrive interlocks).

Shell pressure tested surface lines to 200 psi low 5 mins & 1000 psi 10 mins -

solid test.

Completed Pre-Spud checklist.

Conducted Hazard Hunt. (8 found and closed out).

Conducted Muster Drill.

Functioned ESDs.

Held Pre-Spud safety meeting.

Made up 8.5" re-run Baker PDC Q504FX bit (last grade 0:0), NBS & 4.5" drill

pipe.

Tested mud pump & cellar pump.

Lost ~15 bbls to mud pit seepage.

COND1 DRILL DRL P 15:30 17:30 2.00 8.64 Drilled 8.5" Pilot Conductor Hole from 3m to 8.64m.

200-250 gpm. 30-70 rpm @ 1 to 5k Tqe. 2-9 klbs WOB.

Abrasive drilling, possible boulder stone related.

Ream thru section till clear.

No mud loss downhole. With pits holding.

Confirmed conductor seat of hard claystone/siltstone/limestone.

25/08/2016 12:02:22PM 1






(hr)

Depth

(m)

Operation

COND1 DRILL BHPULD P 17:30 18:45 1.25 8.64 Layed down 8.5" BHA. Bit condition 0-2.

Picked up 12.25" Rerun Smith 616 pdc bit (last grade 0-0) and x-over.

COND1 DRILL HOPEN P 18:45 20:00 1.25 8.64 Opened hole from 8.5" to 12.25" Conductor Hole.

300-350 gpm.

Ream thru section till clear.

No mud loss downhole. With pits holding.

COND1 DRILL BHPULD P 20:00 20:30 0.50 8.64 Layed down 12.25" BHA. Bit condition: TBA

COND1 CASE RU P 20:30 21:00 0.50 8.64 Rig up to run 9-5/8" Conductor Casing.

COND1 CASE CSHNDL P 21:00 23:00 2.00 8.64 Run 9-5/8" Conductor Casing to 8.6 m.

Trouble with crossthreaded joint. Fix same.

Conductor Casing hung up at 7.5 m.

Circulate at 7.0 m - ok.

Attempt to wash down past 7.5m - no go, hydraulicing.

Work & push conductor casing to bottom.

Attempt to circulate - no go.

COND1 CEMT CMT P 23:00 0:00 1.00 8.64 No quick set cement plug pumped/required.

Ran 20mm cement stinger to 7.5m - no go past this.

Circ thru stinger pipe ok.

Mixed & pumped 2 bbls of 14.0ppg cement slurry. With returns to surface. No

top up job required.



(hr)

Depth

(m)

Operation

COND1 CEMT WOC P 0:00 6:00 6.00 8.64 WOC.

Install Blooie Line & prepare for 9" Diverter installation.

Performance Summary




24.00 100.00 0.00 0.00 0.00 0.00 37.00 0.00 0.00 0.00 0.00 100.00 37.00

Daily Cost

Cost

($)


0.00






Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops


0.000.00Mountain Valley Limestone1

50.0050.00Nullawun Member2

95.0095.00Limmen Sandstone3



25/08/2016 12:02:22PM 2













HTHP- FL:

HTHP FC:

HGS:

LGS:

Comments:


Volume Tracking











0.00 0.00


Bulk Stocks - Rig


Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary


Permit to Work Working at Heights 1 S17027, Drops/Mast Inspection prior to raising.


pre-tour meetings.

Procedure Reviewed 5 Casing Run. Handle BHA. Operating Pipe arm. Mixing cement. Enter Cellar.


completed.

Inspection Drops Survey 1 Drops inspection conducted pre-spud.

Hazard Card Behavioural Observation 7 CSE. Forklift use x 2. Loading casing onto flat bed. Operating pump x 2. Casing run.

Inspection Hazard Hunt 1 Pre-Spud Hazard Hunt. 9 x Hazards found & closed out.

Permit to Work Confined Space Entry 1 S17029, Enter Cellar to place dry cement around conductor.

Response Drill Muster Primary 1 Held Muster Drill prior to spud. Functioned ESDs. 2 sec shutdown.

Induction N/A 2 New personnel on board.

Toolbox Talk Toolbox Talk 1 Pre-Spud Safety Meeting Held.

Verification Points


25/08/2016 12:02:22PM 3




Personnel On Board






Santos 5


Total Pax 23

Comments




Pedro Neale (Santos DS) arrived onsite.

Michael Papworth (Santos OCR) arrived onsite.

Foraco & OICs crew changed.

25/08/2016 12:02:22PM 4




Well Data

AustraliaCountry: Day Supv: Andrew Muckersie 8.500 (in)Hole Size: Last Casing Size: n/a









Last Rig Move Distance: 7.60 (km) 34°C, mostly sunny






Rigging up to run 4.5" Surface Casing.Current Ops@0600:

24-Hr Summary: WOC. Retrieve landing joint. Install 9" Diverter & Blooie line. RIH 8.5" BHA. Well Control function tests & Drill. Drill 8.5" Surface

Hole from 8.64m to 50.2m TD.

24-Hour Planned Ops: Trip out 8.5" BHA. Nipple Down Diverter & 9-5/8" Riser. Run & Cement Surface Casing. WOC. Commence Nipple Up 7-1/16"

BOP.




(hr)

Depth

(m)

Operation

COND1 CEMT WOC P 0:00 6:00 6.00 8.64 WOC. (Installed C-plate into rotary table to centralise conductor whilst cement

sets).

Offline ops: Install blooie line and prepare for diverter installation.

Surface sample set at surface @ 06:00 hrs hrs.

COND1 CEMT RD P 6:00 7:15 1.25 8.64 Backed out Landing joint - no trouble. Rigged down 9-5/8" casing handling gear

and drive sub.

SURF1 DIVRTR SAFEM P 7:15 7:30 0.25 8.64 Held PJSM for Diverter installation. Reviewed 2 x procedures and discussed

operations with crew.

SURF1 DIVRTR NU P 7:30 14:30 7.00 8.64 Installed 2 x 2" nipples and 2" ball valves on to diverter riser.

Completed preparing work area.

Carried out pre-layover mast checks. Laid-over Mast at 08:30 hrs Barricaded

exposed cellar area.

Raised CSE permit. Lowered 9-5/8" BTC pin x 9" 3000 psi Flanged Riser into

cellar with FEL. Screw on same to conductor hand tight.

Lowered potato masher onto riser and bolt on same.

Raised Mast at 10:15 hr. Torqued up Diverter riser to the Conductor . Lowered

Mast at 10:45 hrs. Removed potato masher.

Held PJSM. Lifted and lowered Diverter/Mud cross with rated attachment and

landed on to flanged riser. Nippled up Same.

Install centralising and support chains to cellar lugs.

Installed Bell Nipple.

Connected blooie line, koomey lines and Installed flowline.

SURF1 DRILL BHPULD P 14:30 15:15 0.75 8.64 Pick up and make up 8.5" NOV FT616 (re-run SN A210846), complete with 6 x

13's nozzles. 8.5" near bit stab with non ported float and drill pipe. (6k ft.lb /

145 bar).

SURF1 DRILL ACCTST P 15:15 16:30 1.25 8.64 Run in hole to 5 m. Function test Diverter.

Perform accumulator drawdown & function test. Circulate & set alarms on flow

shows x 2.

26/08/2016 11:57:59AM 1






(hr)

Depth

(m)

Operation

SURF1 DRILL CIR P 16:30 17:15 0.75 8.64 Conduct Diverter well control response (shallow gas) exercise. Review

precautions and soft shut in method. Check gas detection.

Completed weighing up active system to 9.0 ppg with salt

PROD1 BOPSUR SAFEM P 17:15 17:45 0.50 8.64 Held Weekly Safety Meeting with both crews and 3rd party personnel.

SURF1 DRILL DRL P 17:45 0:00 6.25 50.20 Drill 8.5" Surface Hole from 8.64 m to 50.2 m.

(Surface hole TD confirmed by WSG & OCR).

3 to 9 klb WOB.

2.8 to 3.4 kft.lbs torque on bottom.

2 kft.lbs torque off bottom.

280 gpm.

200-250 psi SPP.

RPM 50-120.

9.2 to 9.0 lb/gal MW.

36-40 sec/qt vis.

S/w up w/ pumps 12klbs.

S/w down w/ pumps = 6klbs.

S/w w/ pumps = 9klbs.

BHA = 8.5" Bit, 8.5" NBS, 1 x 6.5" DC spiral, 8.5" String Stab, x-over, 2 x 4.75"

DCs slick, x/o, 4.5" drill pipe.

No losses noted.

Used 30 bbls of mud during the day. Mojority pit seepage.

Flow check at TD - well static.

Formations:

Nullawan Member at 4m MD. (46m High to prognosis).

Limmen Sandstone at 49m MD. (46m High to prognosis).

No flowline blockages. Max rate 320 gpm.

Average ROP w/ connections = 6.7 m/hr.



(hr)

Depth

(m)

Operation

SURF1 DRILL POOH P 0:00 3:00 3.00 50.20 Tripped out from 50.2 m to surface.

Lay down BHA.

Bit condition = 0-0-RR.

Slick hole conditions.

SURF1 DIVRTR ND P 3:00 6:30 3.50 50.20 Lower Mast.

Nippled down diverter.

Disconnected blooie, flow & koomey lines.

Centralising chains.

Lift out 9" diverter with FEL.

Install potato masher.

Raise Mast.

Back out 9-5/8" riser with potato masher.

Lower Mast.

Lift out riser.

Raise Mast.

(ready to rig up for 4.5" casing)

Performance Summary




24.00 100.00 0.00 0.00 0.00 0.00 61.00 0.00 0.00 0.00 0.00 100.00 61.00

26/08/2016 11:57:59AM 2




Daily Cost

Cost

($)


0.00






BHA# 3 8.5" Surface Hole

(ft-lbf)Torque Max: 0.00 (m)Meters Drilled: Rotary Drilling AssemblyAssembly Type:

(ft-lbf)Torque Avg On Bottom: (hr)BHA Rotating Hrs: 20.425 (m)BHA length:

(ft-lbf)Torque Avg Off Bottom: (hr)BHA Sliding Hrs: 25 Aug 2016 17:00Date/Time in:

(hr)BHA Circulating Hrs: 26 Aug 2016 3:00Date/Time Out:

(hr)Jars Hours Logged: 8.64 (m)MD In:

(kip)Pickup Weight: 50.20 (m)MD Out:

Slackoff Weight: (kip)Weight Below Jar Dry:

(kip)Rotating String Weight: (kip)Weight Below Jar in Mud:

0.00 (m)Bit to Sensor Distance:

BHA Run Comment:

BHA Components

Equipment Catalogue Description Body OD

(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit FT616 8.500 A210846 1 0.260 0.260

Stabilizer Standard intergral middle bladed stab

bored for a float. box / box.

8.500 1 1.785 2.045

Drill Collar Slick drill collar 6.750 1 4.470 6.515

Stabilizer Standard intergral middle bladed stab. 8.500 1 1.700 8.215

Sub NC-46 pin to NC-38 box 1 0.155 8.370

Drill Collar Slick drill colllar 4.750 2 11.895 20.265

Sub NC-38 pin to DP connection 1 0.160 20.425

Bit Data

Size: Nozzles MD In: Condition I ROB GLDO8.500 (in)

Manufacturer: Baker Hughes No. Size MD Out: Grade Out

Type: PDC 6 13 WOB Avg: 24 Hour Status Calculated Over Bit Run

Model no.: Q504FX WOB Min/Max: / (kip) Progress: Cum. Progress: 0.00 (m)

Serial no.: A210846 RPM Avg: Hrs on Bottom: Cum. Hrs on Bottom: 0.00 (hr)

IADC code: RPM Min/Max: / (rpm) IADC Time: Cum. IADC Time:

Flow rate: Total k.Revs: Cum. Total k.Revs: 0.00.0Run no.: 1

SPP: Avg ROP 0.00 (m/hr) ROP cum.0.00 (hr)Total Hrs on Bit:

TFA: 0.778 (in²)0.0Total k.Revs:

HSI:

Bit Comments:

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops


0.000.00Mountain Valley Limestone1 Not present

50.004.00Nullawun Member2 46m High

95.0049.00Limmen Sandstone3 46m High



26/08/2016 11:57:59AM 3













HTHP- FL:

HTHP FC:

HGS:

LGS:

Comments:


Volume Tracking











0.00 0.00


Bulk Stocks - Rig


G Cement kg 12,760.0 400.0 12,360.0

Cement kg 560.0 20.0 540.0

Fuel, Rig Bulk Tank litre 6,150.0 2,350.0 3,800.0

Fuel, Camp litre 2,500.0 600.0 1,900.0

Fuel, Rig Camp litre 1,400.0 0.0 1,400.0

Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary


Induction N/A 1 New personnel on board.

Time Out for Safety Stop the Job 4 Santos Interventions: Exclusion Zones x 1. PPE. Slinging load. Use Mansell FEL.

Safety Meeting Weekly 1 Held weekly safety meeting with both crews.

Procedure Reviewed 5 Mast Raise & Lower. CSE. Nipple Up. Handle BHA.

Hazard Card Behavioural Observation 7 CSE x 1. Forklift use x 2. Mixing mud x 2. Loading casing onto flat bed. Pre-start drill

rig x 1.

Permit to Work Confined Space Entry 1 S17030, Enter Cellar connect / disconnect chicksan line.


pre-tour meetings.

Verification Points


25-Aug-2016Verified Andrew Muckersie & Michael PapworthHazard verification Plan: Conductor and Surface Hole Phases

24-Aug-2016Verified Andrew MuckersieHazard verification Plan: Infield Rig Move, Rig Up, Pre-spud Activity Phases

26/08/2016 11:57:59AM 4




Personnel On Board






Santos 5


Total Pax 23

Comments




Pedro Neale (Santos DS) and Chris Smith (EHS Advisor) departed location.

M. Papworth (Santos OCR) onsite for handover.

Foraco & OICs crew changed

26/08/2016 11:57:59AM 5




Well Data

AustraliaCountry: Day Supv: Andrew Muckersie 8.500 (in)Hole Size: Last Casing Size: 4.500 (in)

Business Unit: EASTERN AUSTRALIA Night Supv: - Current MD: Last Casing MD: 49.12 (m)50.20 (m)

Field/License: EP 189/EP 189 Office Engineer: Thivanka Dedigama Current TVD: Last Casing TVD: 49.12 (m)50.20 (m)

ExplorationWellbore Type: Drilling Contractor: Faraco Australia Pty Ltd 24 Hr Progress: Last Casing Weight: 11.60 (ppf)0 (m)

Rig Name: Faraco Rig 12 Rig Manager: William Titley Last BOP Test: Last Casing Grade: K-55






AFE no.: 5603057 Expected Rig Release: 01 Sep 2016Days since Last Rig Recordable Injury: 18 (days)





Conducting well control exercise at 40m (prior to drill out shoe track).Current Ops@0600:

24-Hr Summary: Trip out 8.5" BHA. Nipple Down 9" Diverter and 9-5/8" Riser. Run and Cement 4.5" Surface Casing. WOC. Commence Nipple

Up and test 7-1/16" 3000psi BOP.

24-Hour Planned Ops: HQ core ahead 96mm hole.




(hr)

Depth

(m)

Operation

SURF1 DRILL POOH P 0:00 3:00 3.00 50.20 Tripped out from 50.2 m to surface.

Lay down BHA.

Bit condition = 1-0-BT-C-X-I-RR-TD.

Slick hole conditions.

SURF1 DIVRTR ND P 3:00 6:30 3.50 50.20 Lower Mast.

Nippled down diverter.

Disconnected blooie, flow & koomey lines.

Centralising chains.

Lift out 9" diverter with FEL.

Install potato masher.

Raise Mast.

Back out 9-5/8" riser with potato masher.

Lower Mast.

Lift out riser.

Raise Mast.

Offline Ops: Prepared/strapped 4.5" 11.6 lb/ft K55 BTC surface casing. Installed

Foraco supplied 4.5" NR float collar and NR shoe with BakerLok.

SURF1 CASE RU P 6:30 7:15 0.75 50.20 Held PJSM. Reviewed SOP.

Rigged up to run 4.5" casing. Installed 4.5" BTC drive head sub and single joint

elevators. Torqued up to drive sub to topdrive to above 4.5" casing make up

torque. Rigged in handling gear and backed in flat bed trailer with casing.

Removed hole cover and closed out CSE permit.

SURF1 CASE CSHNDL P 7:15 9:00 1.75 50.20 Ran 4.5" 11.6 lb/ft K55 BTC surface casing from surface to 49.12 m setting

depth. Total 8 x joints Range #1 jnts, and 3.5m landing joint (1 x 1m pup and 1 x

2.5m pup joint combo).

BakerLok applied to the first 3 joints run in hole.

Slightly undertorqued landing joint connection.

6 x centralisers run.

SURF1 CASE RIGSER P 9:00 9:30 0.50 50.20 Service Rig. Replaced water swivel.

SURF1 CASE CIR P 9:30 10:00 0.50 50.20 Circulated casing at 150spm/320gpm (7 x btms up). Hole clean. No losses.

Final mud check 9.00 ppg MW and 35 sec/qt vis.

Pumped 3bbls fresh water spacer with coring pump.

27/08/2016 10:49:23AM 1






(hr)

Depth

(m)

Operation

Held PJSM/reviewed JHA for bulker bag use and commenced mixing cement

slurry

SURF1 CASE RIGREP N 10:00 11:15 1.25 50.20 Rig Repair.

Water swivel seized & damaged hose.

Replaced water swivel & damaged hose.

Shell tested to 1000 psi for 10 mins - ok.

SURF1 CEMT CMT P 11:15 12:00 0.75 50.20 Installed Foraco cement head and changed out 4" cellar pump to 2" cellar pump

whilst continue to mix cement slurry.

Installed chart recorder to cement head. OCR witnessed top NR plug loaded

into cement head.

Mixed & pumped 11.9 bbl of 14.1 lb/gal GP cement slurry. Dropped top plug.

Displaced with 2.23 bbl of 9.0 lb/gal mud.

Plug bumped (at 12:00 hrs). Pressure tested casing to 640 psi 10 min (580 psi

at completion of test). Bled back with minimal fluid returns and floats holding.

~3 bbls Cement to surface.

Cement water analysis: 8.5 PH / 0 Cl / 88°F. Checked calibration of mud scales

with fresh water - OK. Two surface cement slurry samples taken.

No losses whilst cementing or displacing. Cement to surface. No slumping

noted and no top job up required.

SURF1 CEMT WOC P 12:00 16:00 4.00 50.20 Waited on cement. No slump noted. No top up jobs required.

Apply dry cement to cellar floor base to absorb extra moisture and harden

cellar floor.

Surface samples hard at 16:00 hrs.

SURF1 CEMT RUNWH P 16:00 19:00 3.00 50.20 Slacked off Landing joint - OK.

Removed cement head.

Backed out and layed out landing joint. Lowered Mast.

Held PJSM, reviewed SOP and raised PTW.

Installed 4.5" x 7" BTC crossover and 7-1/16" BTC box Casing head with potato

masher. Raised Mast.

Torqued up casing head and crossover to 4500 ft/lb. Lowered Mast.

Removed potato masher. Covered hole.

PROD1 BOPSUR NU P 19:00 23:00 4.00 50.20 Lowered and landed 7-1/6" 3000 psi BOP (Annular / Blind Rams / 2x manual Kill

valves / 1x check valve / 1 x manual HCR / 1 x Hydraulically controlled HCR

valve).

Nippled up same:

* Koomey hoses.

* BOP centrailsing/support chains.

* HCR line.

* Kill line.

* Choke manifold.

* Flare line.

* Flare line blocks & ignitor.

* Bell Nipple.

Re-dug 6" flowline and cuttings box into place.

PROD1 BOPSUR TSTPRS P 23:00 0:00 1.00 50.20 Function tested BOP controls at Koomey and BOP control panel .

Test 1: Pressure tested casing / well head & BOP connections / Kill line & HCR

connections against Blind Rams.

Test 2: Choke line, manifold valves 7,8 & 9.

27/08/2016 10:49:23AM 2






(hr)

Depth

(m)

Operation

All tests to 250 psi / 5mins Low & 1000 psi / 10 mins High.



(hr)

Depth

(m)

Operation

PROD1 BOPSUR TSTPRS P 0:00 3:30 3.50 50.20 Completed Pressure testing well control equipment.

Test 3: Manifold valves 4,5 & 6.


Test 5: Annular, Manual choke & kill valve primary.

Test 6: Kill valve secondry.

Test 7: Dart valve ( BOP NRV).

Test 8: Kelly cock.

Test 9: Gray valve.

Test 10: IBOP.


PROD1 EVAL RU P 3:30 5:00 1.50 50.20 Rigged up for HQ coring.

HQ pipe sloop. Core recovery/ pump out area & equipment. Guiberson and

overshot assembly.

PROD1 EVAL RIH P 5:00 6:00 1.00 50.20 Make up HQ core barrel.

New 96mm 9-11 single stage HQ bit. New front & back reamers (gauged at

96.9mm).

RIH on HQ pipe to 40 m.

Conduct Well Control Drills.

Performance Summary




22.75 94.79 0.00 0.00 1.25 5.21 83.75 1.25 0.00 0.00 1.47 98.53 85.00

Daily Cost

Cost

($)


0.00






BHA# 3 8.5" Surface Hole

(ft-lbf)Torque Max: (m)Meters Drilled: Rotary Drilling AssemblyAssembly Type:









BHA Run Comment:

27/08/2016 10:49:23AM 3




BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit FT616 8.500 A210846 1 0.260 0.260

Stabilizer Standard intergral middle bladed stab

bored for a float. box / box.

8.500 3.500 1 1.785 2.045

Drill Collar Slick drill collar 6.750 3.500 1 4.470 6.515

Stabilizer Standard intergral middle bladed stab. 8.500 3.500 1 1.700 8.215

Sub NC-46 pin to NC-38 box 4.750 3.500 1 0.155 8.370

Drill Collar Slick drill colllar 4.750 3.500 2 11.895 20.265

Sub NC-38 pin to DP connection 4.750 3.500 1 0.160 20.425

Bit Data

Size: Nozzles MD In: Condition I ROB GLDO8.500 (in)

Manufacturer: Baker Hughes No. Size MD Out: TDRRIXCBT01Grade Out

Type: PDC 6 13 WOB Avg: 24 Hour Status Calculated Over Bit Run

Model no.: FT616 WOB Min/Max: / (kip) Progress: Cum. Progress: 0.00 (m)

Serial no.: A210846 RPM Avg: Hrs on Bottom: Cum. Hrs on Bottom: 0.00 (hr)





HSI:

Bit Comments:

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops


0.000.00Mountain Valley Limestone1 Not present














HTHP- FL:

HTHP FC:

HGS:

LGS:

Comments:


Volume Tracking











0.00 0.00

27/08/2016 10:49:23AM 4





Bulk Stocks - Rig


G Cement kg 12,360.0 2,000.0 10,360.0

Cement kg 540.0 540.0

Fuel, Rig Bulk Tank litre 3,800.0 8,000.0 600.0 11,200.0

Fuel, Camp litre 1,900.0 200.0 1,700.0


Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary



pre-tour meetings.

Time Out for Safety Stop the Job 3 Santos Interventions: Hand placement. Exclusion Zones x 1. Mixing cement.

Permit to Work Confined Space Entry 1 S17034 - Nipple Up & Test BOPs.

Permit to Work Working at Heights 1 S17032 - Replaced water swivel in Top Drive.

Permit to Work Confined Space Entry 1 S17033 - Nipple up well head & BOP.

Hazard Card Behavioural Observation 7 Forklift use x 2. Mixing cmt x 1. Cmt 4 1/2" csg. Fueling up equipment x 2. M/up

hydraulic hose for rig.

Procedure Reviewed 7 Mast Raise & Lower x 3. N/down Diverter. N/up BOP. Run csg. Cmt csg.

Permit to Work Pressure 1 S17034 - Nipple Up & Test BOPs.

Verification Points




27-Aug-2016Verified Andrew Muckersie & Michael PapworthHazard verification plan: Production Hole phase.

Personnel On Board






Santos 4

Total Pax 20

Comments

Water Source: Mountain Valley G Bore. Pump was turned off on 15th Aug. Turned on 19th Aug. Turned off 26th Aug. (locking gate due to signs of

unauthorised access).




Received 8,000 Lt of Diesel.

27/08/2016 10:49:23AM 5




Well Data

AustraliaCountry: Day Supv: Andrew Muckersie 3.780 (in)Hole Size: Last Casing Size: 4.500 (in)

Business Unit: EASTERN AUSTRALIA Night Supv: - Current MD: Last Casing MD: 49.12 (m)72.60 (m)


ExplorationWellbore Type: Drilling Contractor: Faraco Australia Pty Ltd 24 Hr Progress: Last Casing Weight: 11.60 (ppf)22.40 (m)

Rig Name: Faraco Rig 12 Rig Manager: William Titley Last BOP Test: Last Casing Grade: K-5527 Aug 2016

RT to GL: 0.00 (m) 03 Sep 2016Next Planned BOP Test:

140.00 (m)GL Elevation: 14° 9' 37.200 SLatitude: 21.64 (ppg)LOT (EMW):









RIH NQ string to 72.6m. (Spot high concentrate LCM pill over fractured sandstone).Current Ops@0600:

24-Hr Summary: Pressure test BOPs and equipment. RIH HQ coring assembly. Drill/Core Float & shoe track, Conduct LOT (21.6 ppg EMW).

HQ drill/core ahead from 50.2 m to 62.1 m.

24-Hour Planned Ops: HQ core ahead 96mm hole.




(hr)

Depth

(m)

Operation

PROD1 BOPSUR TSTPRS P 0:00 3:30 3.50 50.20 Completed Pressure testing well control equipment.






Test 8: Kelly cock.

Test 9: Gray valve.

Test 10: IBOP.


PROD1 EVAL RU P 3:30 5:00 1.50 50.20 Rigged up for HQ coring.

HQ pipe sloop. Core recovery/ pump out area & equipment. Guiberson and

overshot assembly.

PROD1 EVAL RIH P 5:00 6:30 1.50 50.20 Make up HQ core barrel.

New 96mm 9-11 single stage HQ bit. New front & back reamers (gauged at

96.9mm).

RIH on HQ pipe to 40 m.

Conduct Well Control Drills.

PROD1 DRILL DRLCMT P 6:30 7:00 0.50 50.20 Held PJSM & equipment pre-starts.

Drill HQ 96mm Core displacemnet plug & float collar from 42.52m to 42.82m.

80 ltr/min at ~100 psi.

4-6k lb WOB.

450 RPM.

Torque 300 to 500 ft.lb.

PROD1 DRILL POOH P 7:00 8:00 1.00 50.20 Retrieve inner tube remove rubber debris. Drop inner tube, still pressure up, pull

HQ string, remove rubber from bottom landing collar in barrel & core bit face.

RIH HQ string.

PROD1 DRILL DRLCMT P 8:00 10:00 2.00 51.60 Drill HQ 96mm Core float and shoe track from 42.82 m to 51.6 m.

80 ltr/min at ~100 psi.

29/08/2016 11:57:36AM 1






(hr)

Depth

(m)

Operation

4-6k lb WOB.

450 RPM.

Torque 300 to 500 ft.lb.

PROD1 DRILL POOH P 10:00 11:00 1.00 51.60 Stuck core tube. POOH HQ string and removed mushroomed core.

(Sandstone/swelled claystone/sandstone) RIH.

PROD1 EVAL CORE P 11:00 11:45 0.75 53.30 HQ cored 96mm hole from 51.6 m to 53.3 m.

Retrieving 6m inner tube as required.

400-500 RPM.

Torque: 400-500 ft.lb on bottom, 250 ft. lb off bottom

4-10 klb WOB.

60-100 lit/min at 200-400 psi.

MW = 9.1 ppg. 32-34 sec/qt Vis.

6% KCL / PHPA mud.

No Losses.

PROD1 EVAL CIR P 11:45 12:00 0.25 53.30 Circulated hole clean at 100 lit/min and confirmed even mud weights of 9.1

lb/gal.

PROD1 EVAL LOTFIT P 12:00 13:00 1.00 53.30 Pull back inside casing shoe.

Perform Leak off Test down HQ core string inside casing shoe .

105 psi. leak off pressure = 21.6 lb/gal EMW

28.7 gal pumped. Zero gal returned.

PROD1 EVAL CORE P 13:00 17:45 4.75 62.10 HQ cored 96mm hole from 53.3 m to 62.1m.


Fractured sandstsone core:

0.8m, 2.36m, 0.6m, 4.0m, 0.7m, 0.3m, 2.37m recoveries.

450-750 RPM.

Torque: 400-500 ft.lb on bottom, 200 ft. lb off bottom

8 klb WOB.

60-100 lit/min at 200-400 psi.

MW = 9.1 ppg. 32-34 sec/qt Vis.

6% KCL / PHPA mud.

Losses increased from ~4-5 bbls/hr to ~15bbls/hr.

Average ROP in the Limmen Sandstone = 1.85 m/hr.

Flow checking prior to breaking HQ connections and installing Guiberson pack

off. Flow checking and checking inline pressure gauge prior to removing

Guiberson pack off and retrieving inner core barrel .

Constant pit monitoring. Recording pit levels/mud checks and drilling

parameters, minimum once per hour.

PROD1 EVAL FLWCHK P 17:45 18:15 0.50 62.10 Flow check over trip tank.

Static losses at 12 bbls/hr.

PROD1 EVAL CIR P 18:15 19:00 0.75 62.10 Mix Rheoplug/Cellplug bucket mix apply down string, chase with 10ppb LCM.

Slowly pump thru bit & annulas with 10ppb LCM.

Monitored static losses < 1bbl/hr.



Fractured sandstsone core:

0.9m, 3.5m, 4m, 0.2m, 1.5m recoveries.

750 RPM

Torque: 520 ft.lb on bottom, 200 ft.lb off bottom.

7-10 klb WOB.

29/08/2016 11:57:36AM 2






(hr)

Depth

(m)

Operation

40-60 lit/min at 100-400 psi.

MW = 9.2 ppg. 32 sec/qt Vis

6% KCL / PHPA mud.

Rheoplug/Cellplug bucket mix applied down string prior to dropping inner tube

on connections.

Small concentrate of Cellplug/FracSeal M added to active system.

Persistant losses.

Average ROP with retrieving inner tube = 2.1 m/hr.

In the Limmen Sandstone Formation.








(hr)

Depth

(m)

Operation

PROD1 EVAL CORE N 0:00 5:00 5.00 72.60 Losses equaling core pump rate.

Monitor static losses and assessed at ~22 bbl/hr.

Treat same with LCM with static losses back to ~6 bblhr.

Attempt to continue core ahead but dynamic total losses persistent. Limited on

LCM concentration due to HQ core string. Inform SDE.

PROD1 EVAL POOH N 5:00 6:00 1.00 72.60 Tripped out HQ string & RIH NQ mule shoe and string.

~6 bbls/hr static losses.

Performance Summary




24.00 100.00 0.00 0.00 0.00 0.00 107.75 1.25 0.00 0.00 1.15 98.85 109.00

Daily Cost

Cost

($)


0.00






BHA# 6 Coring

(ft-lbf)Torque Max: (m)Meters Drilled: Coring AssemblyAssembly Type:









BHA Run Comment:

29/08/2016 11:57:36AM 3




BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 158436 1 0.115 0.115

Stabilizer Front Reamer Shell 1 0.140 0.255

Core Barrel HQ Core Barrel 1 3.440 3.695


Stabilizer Back Reamer Shell 1 0.188 7.323

Sub Locking Coupling 1 0.265 7.588

Bit Data

Size: Nozzles MD In: Condition I ROB GLDO

Manufacturer: Hard Core No. Size MD Out: Grade Out

Type: Core Bit WOB Avg: 24 Hour Status Calculated Over Bit Run

Model no.: 615197 WOB Min/Max: / (kip) Progress: Cum. Progress: 0.00 (m)

Serial no.: 158436 RPM Avg: Hrs on Bottom: Cum. Hrs on Bottom: 0.00 (hr)




TFA: 0.0Total k.Revs:

HSI:

Bit Comments:

BHA# 5 Coring










BHA Run Comment:

BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 9-11 158436 1 0.115 0.115






Bit Data










HSI:

Bit Comments:

BHA# 4 Coring










BHA Run Comment:

29/08/2016 11:57:36AM 4




BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 9-11 158436 1 0.115 0.115






Bit Data










HSI:

Bit Comments:

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops


0.000.00Mountain Valley Limestone1 Not Present



73.6073.60DOOK CREEK4 56.4m High

Cum Mud Cost: Mud Cost Today: Fluid Data $ 4,396.75$ 1,728.25

32.00 (s/qt)Viscosity: Mud desc.: 6% KCL, Gel, PHPA/Polymer. Low Range RheologyH2O:

KCL/POLYMERMud Type: PV: ReadingRPMOil:

Sample Location: IN YP: 600Sand:

Sample Depth: 55.00 (m) Gels 10 sec: 300NaCL:

13:00Sample Time: Gels 10 min: 200Cl:

Weight: 9.10 (ppg) Gels 30 min: 100KCl/ K2SO4:

ECD: 6API Fluid Loss: Hard/Ca:

Temp.: 91 (°F) 3Filter cake: MBT:

HTHP- FL: Pm:

HTHP FC: Pf:

HGS: Consistency index (K):

LGS: Drilling Solids:

Total hard: Solids Corrected:

pH: Mf:

PHPA:

Comments:


Volume Tracking











0.00 0.00


Bulk Stocks - Rig


29/08/2016 11:57:36AM 5




Bulk Stocks - Rig


G Cement kg 10,360.0 0.0 10,360.0

Cement kg 540.0 0.0 -40.0 500.0

Fuel, Rig Bulk Tank litre 11,200.0 800.0 10,400.0

Fuel, Camp litre 1,700.0 150.0 1,550.0


Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary


Procedure Reviewed 6 Mast Raise & Lower x 1. N/up BOP. Test BOP x 2. LOT. Mix mud x 2.


pre-tour meetings.

Safety Meeting Safety Alert Review 1 Reviewed safety alert- Valve falling off trailer on Rig move.

Time Out for Safety Stop the Job 3 Santos Interventions: LOT. Mixing LCM - PPE.

Permit to Work Confined Space Entry 1 17036 - CSE - Attach 2" line to well head.

Hazard Card Behavioural Observation 9 Forklift use x 2. Mixing mud x 2. Pulling rods. Fueling up equipment x 2. LOT x 2.

Safety Meeting Safety Alert Review 1 Reviewed safety alert - Driving through dust clouds.

Verification Points





Personnel On Board






Santos 4

Total Pax 21

Comments






Site visit from Jop van Hattum senior director DME.

Loaded 6 trailer ready for load out to Marmbulligan 1.

29/08/2016 11:57:36AM 6




Well Data

AustraliaCountry: Day Supv: Michael Papworth 3.780 (in)Hole Size: Last Casing Size: 4.500 (in)

Business Unit: EASTERN AUSTRALIA Night Supv: Current MD: Last Casing MD: 49.12 (m)120.60 (m)



Rig Name: Faraco Rig 12 Rig Manager: Andrew Marsden Last BOP Test: Last Casing Grade: K-5527 Aug 2016











Cure losses.Current Ops@0600:

24-Hr Summary: Attempt to cure losses. Spot LCM. HQ drill/core ahead from 72.6 m to 120.6 m.

24-Hour Planned Ops: HQ core ahead 96mm hole




(hr)

Depth

(m)

Operation

PROD1 EVAL CORE N 0:00 5:00 5.00 72.60 Losses equaling core pump rate.

Monitor static losses and assessed at ~22 bbl/hr.

Treat same with LCM with static losses back to ~6 bblhr.

Attempt to continue core ahead but dynamic total losses persistent. Limited on

LCM concentration due to HQ core string. Inform SDE.

PROD1 EVAL POOH N 5:00 6:00 1.00 72.60 Tripped out HQ string & RIH NQ mule shoe and string.

~6 bbls/hr static losses.

PROD1 EVAL CIR N 6:00 8:30 2.50 72.60 Mix 4bbl, 40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio).

Pump through side entry with flexi drive pump and spot across wellbore with

returns to surface. Hole volume in stinger = ~3.5 bbls.

Lost 1 bbls whilst pumping LCM pill.

Rest & seep in place for 30 mins (whilst mix new mud).

Down to 0.0 bbl/hr static losses.

Displaced LCM pill out of well with 9.0ppg 6%KCL phpa/polymer mud at max

core pump rate 100 ltrs/min.

No dynamic losses.

Monitor well for 5 mins - well static.

PROD1 EVAL POOH N 8:30 9:30 1.00 72.60 Tripped out NQ string and mule shoe.

Flow check - well static.

RIH HQ string (w/ re-run 9-11 stage 1 bit).

Install fluid retention ball into back end spring in inner tube.

PROD1 EVAL MONW N 9:30 10:00 0.50 72.60 Circulate at 40 to 80 ltrs/min with total losses.

Fill backside with 9.0ppg mud whilst circulating down HQ string, uanable to

keep up, creating a dynamic vortex on annuls.

With no circulation, well maintained in a near static condition, <0.5 bbls/hr loss.

Inform SDE.

PROD1 EVAL MONW N 10:00 10:45 0.75 72.60 Prepared to Core ahead 96mm HQ hole with no returns.

Water hauler fill tanker. Prepare 2 x tubs and hoses for topping up annulas with

water. Mix new mud.

PROD1 EVAL SAFEM N 10:45 11:00 0.25 72.60 Held pre job safety meeting with Foraco personnel.

PROD1 EVAL CORE P 11:00 0:00 13.00 120.60 Coring with mud through string with at 40 L/min with no returns, keeping

annulus full with fresh water. Water truck on stand by filling tub.

HQ cored 96mm hole from 72.6 m to 120.6 m.

Retrieving 6m inner tube as required. Dry release tool in use.

Partial core recovery & possible cavernous ground.

29/08/2016 12:00:33PM 1






(hr)

Depth

(m)

Operation

Fractured sandstone core:

Drilled 1.8 Recovered 1.2












Drink rate on annulus = ~2000 - 3000 ltrs/hr.

Pump rate = 2400 lt/hr loss - non circ time = ~1600 ltrs/hr.

400 - 550 RPM


4-10 klb WOB.

40 lit/min at 150-350 psi.

MW = 9.0-8.7 ppg. 32 sec/qt Vis

6% KCL / PHPA mud.


In the Dook creek member.








(hr)

Depth

(m)

Operation


annulus full with fresh water.

HQ cored 96mm hole from 120.6 m to 130 m.


Drink rate on annulas = ~3000 - 4000 ltrs/hr.

400 - 550 RPM


4-10 klb WOB.



6% KCL / PHPA mud.



PROD1 EVAL CIR N 1:30 3:00 1.50 130.00 Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl, 40ppb 9.4ppg

LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump through side

entry with flexi drive pump and spot across wellbore with no returns surface.

29/08/2016 12:00:33PM 2






(hr)

Depth

(m)

Operation

Rest & seep in place for 15 mins. (whilst mix new LCM).

Monitor well filling annulus with water = 18 bbl/hr static losses.

Repeat process: Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl,

40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump

through side entry with flexi drive pump and spot across wellbore with no

returns surface.

Rest & seep in place for 15 mins.


PROD1 EVAL POOH N 3:00 3:30 0.50 130.00 Running low on water:

Tripped out HQ string at controlled rate inside 4 1/2" shoe.

PROD1 EVAL MONW N 3:30 8:00 4.50 130.00 Shut in well periodically opening and filling annulus with water checking static

losses whilst filling surface tanks/pits with water = Static losses incresed ton

60 bbl/hr static.

Hauling water to site from 04:00hr.

Performance Summary




13.00 54.17 0.00 0.00 11.00 45.83 120.75 12.25 0.00 0.00 9.21 90.79 133.00

Daily Cost

Cost

($)


0.00






BHA# 7 Coring




(hr)BHA Circulating Hrs: Date/Time Out:


(kip)Pickup Weight: MD Out:




BHA Run Comment:

BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 158436 1 0.115 0.115






29/08/2016 12:00:33PM 3




Bit Data


Manufacturer: Boart Longyear No. Size MD Out: Grade Out








HSI:

Bit Comments:

BHA# 6 Coring










BHA Run Comment:

BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 158436 1 0.115 0.115






Bit Data










HSI:

Bit Comments:

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops






29/08/2016 12:00:33PM 4




Cum Mud Cost: Mud Cost Today: Fluid Data $ 4,396.75$ 0.00









HTHP- FL: Pm:

HTHP FC: Pf:




pH: Mf:

PHPA:

Comments:


Volume Tracking











0.00 0.00


Bulk Stocks - Rig


G Cement kg 10,360.0 0.0 10,360.0

Cement kg 500.0 0.0 500.0

Fuel, Rig Bulk Tank litre 10,400.0 400.0 10,000.0

Fuel, Camp litre 1,550.0 150.0 1,400.0


Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary


Hazard Card Behavioural Observation 8 Forklift use x 3, Service Gen set, Check trye pressure, Mixing mud x 2. Pulling rods.

Fueling up equipment.

Time Out for Safety Stop the Job 5 Santos Interventions:Mixing LCM - PPE. Exclusion Zones x 2. Spotter for forklift x 2.


pre-tour meetings.

Procedure Reviewed 5 Mix mud x 2. Using folk lift x 2. Manual handling.

Verification Points





29/08/2016 12:00:33PM 5




Personnel On Board






Santos 4

Total Pax 20

Comments




Loaded out 2 road trains (6 trailers) with miscellaneous equipment to Marmbulligan 1.



29/08/2016 12:00:33PM 6




Well Data





Rig Name: Faraco Rig 12 Rig Manager: Andrew Marsden Last BOP Test: Last Casing Grade: K-5527 Aug 2016





Last Rig Move Distance: 7.60 (km) 35°C, Sunny






Cure losses.Current Ops@0600:

24-Hr Summary: Attempt to cure losses. Spot LCM pill. HQ drill/core ahead from 120.6 m to 156.6 m filling annulus with water. POOH setting

LCM pills. RIH with NQ string and spot LCM.

24-Hour Planned Ops: Cure losses. Attempt wireline logging program (3 x Runs, subject to borehole conditions). RIH NQ cement stinger. Pumped

LCM pill. Conducted cement plugs for P&A. WOC and tag top of cement.




(hr)

Depth

(m)

Operation


annulus full with fresh water.

HQ cored 96mm hole from 120.6 m to 130 m.


Drink rate on annulus = ~3000 - 4000 ltr/hr.

400 - 550 RPM


4-10 klb WOB.



6% KCL / PHPA mud.



PROD1 EVAL CIR N 1:30 3:00 1.50 130.00 Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl, 40ppb 9.4ppg

LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump through side

entry with flexi drive pump and spot across wellbore with no returns surface.

Rest & seep in place for 15 mins. (whilst mix new LCM).


Repeat process: Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl,

40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump

through side entry with flexi drive pump and spot across wellbore with no

returns surface.

Rest & seep in place for 15 mins.


PROD1 EVAL POOH N 3:00 3:30 0.50 130.00 Running low on water:

Tripped out HQ string at controlled rate inside 4 1/2" shoe.

PROD1 EVAL MONW N 3:30 9:00 5.50 130.00 Shut in well periodically opening and filling annulus with water checking static

losses whilst filling surface tanks/pits with water = Static losses increased to

60 bbl/hr.


30/08/2016 12:00:12PM 1






(hr)

Depth

(m)

Operation

PROD1 EVAL RIH N 9:00 10:30 1.50 130.00 RIH with HQ string from shoe to 130m. Reamed through tight spots at 62m –

64m, 69m and 2m of fill on bottom. 60 - 80 bbls/hr static losses.


Coring with mud through string at 40 lit/min with no returns. Constantly filling

annulus with water to maintain full hole, with a drink rate @ 6~80 bbl/hr.










400 - 550 RPM


4-10 klb WOB.

40-60 lit/min at 150-350 psi.


6% KCL / PHPA mud.

WSG confirmed TD at 156.6m in the Jamberline Member (11.5m below the Dook

Creek P004 member).



Guiberson pack off and retrieving inner core barrel . Constant pit monitoring.

Recording pit levels/mud checks and drilling

parameters, minimum once per hour

PROD1 EVAL POOH P 18:30 19:00 0.50 156.60 POOH with HQ string at controlled rate from 156.6m to shoe with no drag filling

annulus with water.

PROD1 EVAL CIR N 19:00 21:30 2.50 156.60 Mix 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45 sec/qt

vis. Pump through side entry with flexi drive pump & seep down hole for 30

mins (whilst mix next pill).

Static losses at 80 bbl/hr.

Mix 2nd 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45

sec/qt vis. Pump through side entry with flexi drive pump & seep down hole for

30 mins.


PROD1 EVAL POOH P 21:30 22:00 0.50 156.60 POOH with HQ string from shoe to surface filling annulus with water.

PROD1 EVAL RIH N 22:00 23:30 1.50 156.60 RIH with NQ string from shoe to TD @ 156.6m. Worked and reamed through

tight spots at 83m. Worked and reamed obstruction to bottom.

60 - 80 bbls/hr static losses.

PROD1 EVAL CIR N 23:30 0:00 0.50 156.60 Mix 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45 sec/qt

vis. Pump through side entry with flexi drive and spot on bottom. Rest & seep

for 30 mins.




(hr)

Depth

(m)

Operation

30/08/2016 12:00:12PM 2






(hr)

Depth

(m)

Operation

PROD1 EVAL POOH N 0:00 0:30 0.50 156.60 Running low on water: Tripped out NQ string at controlled rate inside 4 1/2"

shoe and Shut in well.

PROD1 EVAL WOPE N 0:30 4:00 3.50 156.60 One water hauler/ truck driver on site and out of working hours keeping well

shut in until water hauling continues.

200bbls kept in surface tank as back up.

PROD1 EVAL MONW N 4:00 8:00 4.00 156.60 Resume hauling water to rig filling all surface tanks. Start filling hole with rig

pump @ 90 Lt/min and filling annulus with water. 150 bbls of water pumped on

annulus with no returns - Shut well in.

Performance Summary




10.50 43.75 0.00 0.00 13.50 56.25 131.25 25.75 0.00 0.00 16.40 83.60 157.00

Daily Cost

Cost

($)


0.00






BHA# 7 Coring










BHA Run Comment:

BHA Components


(in)

Body ID

(in)

Serial no. No.

Joints (m)

Length

(m)

Cum. Length

Bit HQ3 Core bit 158436 1 0.115 0.115






Bit Data


Manufacturer: Boart Longyear No. Size MD Out: Grade Out








HSI:

Bit Comments:

Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

30/08/2016 12:00:12PM 3




Formation Tops






145.10145.10Jamberline Mbr5 59.9 High










HTHP- FL: Pm:

HTHP FC: Pf:




pH: Mf:

PHPA:

Comments:


Volume Tracking











0.00 0.00


Bulk Stocks - Rig


G Cement kg 10,360.0 0.0 10,360.0

Cement kg 500.0 0.0 500.0

Fuel, Rig Bulk Tank litre 7,100.0 980.0 -550.0 5,570.0

Fuel, Camp litre 2,120.0 100.0 550.0 2,570.0


Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary



pre-tour meetings.

Time Out for Safety Stop the Job 3 Santos Interventions: Trip hazard. Working dark areas at night. Monitoring well.


completed.

Hazard Card Behavioural Observation 7 Pulling rods x 2. Incorrect PPE. Forklift use, Journey management, Mixing mud x 2.

Procedure Reviewed 9 Handling rods x 2. Mix mud x 2. Using folk lift x 1.Retrieving wireline core x 2.

Pumping out core x 1. Mixing Mud x 1.

Verification Points


30/08/2016 12:00:12PM 4








Personnel On Board






Santos 4

Total Pax 20

Comments




OCR - A. Muckersie departed location to Darwin.


Weatherford logging crew arrived on site @ 13:00 hrs.

30/08/2016 12:00:12PM 5




Well Data




ExplorationWellbore Type: Drilling Contractor: Foraco Australia Pty Ltd 24 Hr Progress: Last Casing Weight: 11.60 (ppf)0 (m)

Rig Name: Foraco Rig 12 Rig Manager: Andrew Marsden Last BOP Test: Last Casing Grade: K-5527 Aug 2016





Last Rig Move Distance: 7.60 (km) 37°C, Mostly sunny

AFE no.: 5603057 Expected Rig Release: 31 Aug 2016Days since Last Rig Recordable Injury: 23 (days)




Cumulative Total Cost: $ 1,038,548.75

Current Ops@0600:

24-Hr Summary: P & A operations. Pressure tested cement plug. Nippled Down BOPs. Removed wellhead. Install P& A marker sign. Rig

Released at 17:00 hrs to Marmbulligan 1.

24-Hour Planned Ops:




(hr)

Depth

(m)

Operation

ABANP ZONISO CMT P 0:00 2:00 2.00 156.60 Wait on cement to 100psi compressive strength.

Tripped in NQ pipe and tagged TOC at 66m with 5klb.

ABANP ZONISO CMT P 2:00 3:30 1.50 156.60 Conducted Cement plug # 4:

66m to 10m

Poured 1.25bbl Rheoplug, Cellplug, Fracseal (M) LCM pill down string prior to

cement.

Mixed and pumped 3.0bbl of 14.0ppg GP cement slurry with 1% Rheoplug and

3% Calcium chloride by weight of cement.

Displaced with 20lt of water.

NQ pipe blocked up half way into pumping the slurry.

POOH 6m and blocakge released. Attempted to pump the remaining slurry mix

but blockage recurred.

POOH another 6m and it released again. Pumped the remaining slurry mix down

and observed cement to surface.

POOH to surface and observed the well was holding cement to surface.

Opened the side outlet on bell nipple, ran in hole to 9m and flushed with fresh

water.

Observed the well still holding fluid. POOH and shut in well on blind rams.

Mix water results for cement plugs:

Chlorides 0ppm

7.5 to 8.5 pH.

ABANP ZONISO CMT P 3:30 8:00 4.50 156.60 Wait on cement to 100psi compressive strength.

Tripped in NQ pipe and tagged TOC at 6m with 7klb. Laid down rod.

ABANP ZONISO TSTPRS P 8:00 9:00 1.00 156.60 Pressure tested cement plug against closed blind rams to 1000 psi for 15 mins -

good test.

ABANP WHD ND P 9:00 13:30 4.50 156.60 Nippled down BOPs. Rigged out Choke Manifold, Flare line and related

equipment.

ABANP WHD ND P 13:30 17:00 3.50 156.60 Removed Wellhead & crossover with Spud Masher.

Install P&A marker plate to casing stub.

1/09/2016 12:31:35PM 1






(hr)

Depth

(m)

Operation

Top Casing stub = 2.3m below GL (0.7m above cellar floor).

Cellar left in place for removal with excavator.

Release Foraco Rig 12 to Marmbulligan 1 at 17:00 hrs.

Performance Summary




17.00 100.00 0.00 0.00 0.00 0.00 162.25 35.75 0.00 0.00 18.06 81.94 198.00

Daily Cost

Cost

($)


125,867.00






Surveys

MD

(m)

Inc.

(°)

Azi.

(°)

TVD

(m)

Dleg

(°/100ft)

N/S

(m)

E/W

(m)

Departure

(m)

Dir

(°)

Build

(°/100ft)

Turn

(°/100ft)

Formation Tops






145.10145.10Jamberline Mbr5 59.9 High










HTHP- FL:

HTHP FC:

HGS:

LGS:

Comments:


Volume Tracking











0.00 0.00

1/09/2016 12:31:35PM 2





Bulk Stocks - Rig


G Cement kg 10,360.0 0.0 10,360.0

Cement kg 500.0 0.0 500.0

Fuel, Rig Bulk Tank litre 4,670.0 2,000.0 2,670.0

Fuel, Camp litre 2,470.0 100.0 2,370.0

Fuel, Rig Camp litre 1,000.0 50.0 950.0

Pumps


TypeNo. Liner size

(in)

Efficiency

(%)

SPP

(psi)

Flow

(gpm)

Flow

(gpm)

Depth

(m)

SPM

(spm)

MW

(ppg)

SPM

(spm)

SPP

(psi)

2 Core/Bean Pump

EHS Summary


Procedure Reviewed 5 Tripping pipe x 2. Fueling up equipment. Handling rods x 2.

Time Out for Safety Stop the Job 1 Santos Interventions: Working in confined space.

Toolbox Talk Pre/Post-Tour Meeting 1 Held pre-tour safety meetings with crew.

Permit to Work Confined Space Entry 1 #17037 - Nipple down BOP.

Hazard Card Behavioural Observation 9 Pulling rods x 2. Forklift use x 4. Pressure test. Working in confined space.

Reamming in hole. Housekeeping.

Permit to Work Hot Work 1 #17038 - Weld steel plate to 4 1/2" casing stub.


completed.

Verification Points


31-Aug-2016Verified Michael PapworthEvaluation & P & A phase.




Personnel On Board






Santos 4

Total Pax 22

Comments

Water Source: Mountain Valley G Bore. Pump was turned off 30th Aug. (locking gate due to signs of unauthorised access).


1/09/2016 12:31:35PM 3

SECTION 6 : TIME vs DEPTH CURVE AND NPT SUMMARY

Well Name: Mountain Valley 1 Operating Co: Santos QNT Pty Ltd Rig: Foraco Rig 12

Mountain Valley1, Final Drilling Performance Report

SECTION 7 : DRILLING FINAL WELL REPORT INCLUDING - BHA SUMMARY

- BIT RECORD - CASING AND CEMENTING SUMMARIES

Well Name: Mountain Valley 1 Operating Co: Santos QNT Pty Rig: Foraco Rig 12

- 31 Aug 201623 Aug 2016

Mountain Valley 1

Field - EP 189

Final Well Report

Santos QNT Pty

Report Compiler: Jessica Wrigley

Date of Issue: 28 Oct 2016

Page: 1


Well Objective Mountain Valley-1 is a stratigraphic well to fulfil Yr 4 permit obligation.

AustraliaCountry

EP 189Field

Mountain Valley 1

EP 189Block

Well

Well Type

Operating Company

Rig

Santos Ltd

Exploration

Foraco Rig 12

EP 189

Latitude

Longitude

License

RT to GL

GL Elevation

0.00

Planned TD

Actual TD 157

350

Spud Date

TD Reached

Rig Released

Total Days Since Spud

Total Days on Operations

7.05

8.08

m

m

m

m

14 9 So ' 3 7 . 16 "

133 o 44 ' 1

5.43 " E

143.4

24/08/2016 15:30 29/08/2016 17:45 31/08/2016 17:00

Section 1 - Well Summary

Page: 2


Section 2 - Well History

No. Depth (m) Date Operations

23-Aug-2016 Rig Released from Flying Fox 1 at 11:00 hrs. Loaded out Foraco Rig to 100%. Spotted Foraco Rig to 100% at Mountain Valley to 18:00 hrs. Rigged up under lights.

0.001

24-Aug-2016 Rig Moved Main Camp. Last load spotted at Mountain Valley at 08:30 hrs. Completed Pre-Spud work scope. Spudded Mountain Valley 1 at 15:30 hrs. Drilled, cased & cemented 9-5/8" Conductor.

8.642

25-Aug-2016 WOC. Retrieve landing joint. Install 9" Diverter & Blooie line. RIH 8.5" BHA. Well Control function tests & Drill. Drill 8.5" Surface Hole from 8.64m to 50.2m TD.

50.203

26-Aug-2016 Trip out 8.5" BHA. Nipple Down 9" Diverter and 9-5/8" Riser. Run and Cement 4.5" Surface Casing. WOC. Commence Nipple Up and test 7-1/16" 3000psi BOP.

50.204

27-Aug-2016 Pressure test BOPs and equipment. RIH HQ coring assembly. Drill/Core Float & shoe track, Conduct LOT (21.6 ppg EMW). HQ drill/core ahead from 50.2 m to 62.1 m.

72.605

28-Aug-2016 Attempt to cure losses. Spot LCM. HQ drill/core ahead from 72.6 m to 120.6 m.

120.606

29-Aug-2016 Attempt to cure losses. Spot LCM pill. HQ drill/core ahead from 120.6 m to 156.6 m filling annulus with water. POOH setting LCM pills. RIH with NQ string and spot LCM.

156.607

30-Aug-2016 Haul water attempting to cure loss circulation, Complete 2 logging runs through NQ string. P& A operations.

156.608

31-Aug-2016 P & A operations. Pressure tested cement plug. Nippled Down BOPs. Removed wellhead. Install P&A marker sign. Rig Released at 17:00 hrs to Marmbulligan 1.

156.609

Page: 3


Section 3 - BHA Summary

1

12-08-2016 11:00 12-08-2016 12:45

Rotary Drilling Assembly Depth In : Depth Out :

Date In : Date Out :

Component O.D. (in) Jts Length (m)

(m)3.00 8.46 (m)

18.500 0.37Bit

18.500 1.78Near Bit Stabilizer

16.500 0.15Cross Over

24.500 6.33Drill Pipe

Total Length :

BHA Comment

8.64

2

24-08-2016 17:45 24-08-2016 19:00




(m)8.64 8.64 (m)

12-1/4" Conductor hole opening

112.250 0.37Bit


24.500 7.82Drill Pipe

Total Length :

BHA Comment

8.64

3

25-08-2016 14:30 26-08-2016 03:00




(m)8.64 50.20 (m)

8.5" Surface Hole

18.500 0.26PDC


16.750 4.47Spiral Drill Collar

18.500 1.70Integral Blade Stabilizer


24.750 11.89Drill Collar


Total Length :

BHA Comment

20.42

4

27-08-2016 05:00 27-08-2016 08:00

Coring Assembly Depth In : Depth Out :



(m)50.20 50.20 (m)

Coring

13.780 0.11Core Bit


13.500 3.44Core Barrel




Page: 4


Total Length :

BHA Comment

7.59

5

27-08-2016 08:00 27-08-2016 10:00




(m)50.20 51.60 (m)

Coring

1 0.11Core Bit

1 0.14Near Bit Stabilizer

1 3.44Core Barrel

1 3.44Core Barrel

1 0.19Integral Blade Stabilizer

1 0.26Cross Over

Total Length :

BHA Comment

7.59

6

27-08-2016 11:00 28-08-2016 05:30




(m)51.60 72.60 (m)

Coring

13.780 0.11Core Bit






Total Length :

BHA Comment

7.59

7

28-08-2016 05:30 29-08-2016 23:59




(m)72.60 156.60 (m)

Coring

13.780 0.11Core Bit






Total Length :

BHA Comment

7.59

Page: 5


Section 4 - Mud Record

Solids

(%)

HTHP FL

(cc/30m)

API FL

(cc/30m)Gels 10s/10m/30m

(lbf/100f^2)

Viscosity

(s/qt)

Density

(ppg)f)o(TempDate - Time Mud Type Depth

(m)PV

(cP)YP

(lbf/100f^2)

Sand

(%)

MBT PH CL

(mg/L)

Hard

(mg/L)

KCl

(%)

55 40.00KCL/POLYMER

80 8.90 / /24/08/2016 13:00

55 40.00KCL/POLYMER

80 8.90 / /25/08/2016 13:00

55 34.00KCL/POLYMER

91 9.00 / /26/08/2016 13:00

55 32.00KCL/POLYMER

91 9.10 / /27/08/2016 13:00

55 32.00KCL/POLYMER

91 9.10 / /28/08/2016 13:00

55 32.00KCL/POLYMER

91 9.10 / /29/08/2016 13:00

55 32.00KCL/POLYMER

91 9.10 / /30/08/2016 13:00

55 32.00KCL/POLYMER

91 9.10 / /30/08/2016 13:00

Page: 6


Section 5 - Casing Summary

Top Depth MD/TVD (m) :

Casing Name :

23 August 2016

Shoe Depth MD/TVD (m)

:Top of Cement MD/TVD (m) : /49.12 49.12 0.00 0.00/

0.00 0.00 Total Length (m) : 49.12/

Surface Casing Suspension Point :

8.500Hole Size (in) :Report No : Report Date :1

MD Base

(m)O.D.

(in)I.D.

(in)Length

(m)

Weight

(ppf)Grade MD Top

(m)

-

No.

Joints

0.00K-5511.604.0004.5001 2.10 2.10Casing

2.10K-5511.604.0004.5008 40.41 42.51Casing

42.51K-5511.604.0004.5001 0.39 42.90Float Collar

42.90K-5511.604.0004.5001 5.82 48.72Casing

48.72K-5511.604.0004.5001 0.40 49.12Casing Shoe

Page: 7


Section 6 - Cement Summary

Start : Job End: 26/08/2016,11:30 26/08/2016,12:004 1/2” x 5” Production Casing CementHole Size (in) : 8.50

Stage No: 1 of 1 50.20 50.200.00 0.00Top (m) MD/TVD : Base (m) MD/TVD : / /

Stage Slurry Descriptions

Top Plug Used ? : Y Bottom Plug Used ? : N Plug Bumped ? : Y Float Held ? : Y

Cement Returns (bbls) : 3Pressure Held (psi) : 640 Held Duration (mins) : 10 Bump Pressure (psi) : 640

Fluid Description:

Fluid Type :

Fluid Class :

8.3Slurry Density (ppg) :

Slurry Volume (bbl) :

Excess (%)

Yield (cu.ft/sk) :

Cement Used (sacks):

Vol. Water Used (bbl) :

SPACER

Water

Fresh water

WATERMud Type : PV (cp) : YP (lbf/100ft2) : Water Source : MV G Bore

Slurry Additives

Additive Name Concentration AmountType

3.0

0

Fluid Description:

Fluid Type :

Fluid Class :

14.1Slurry Density (ppg) :

Slurry Volume (bbl) :

Excess (%) 50

Yield (cu.ft/sk) : 1.51

Cement Used (sacks): 80

Vol. Water Used (bbl) :

LEAD

GP

GP Cement Slurry

N/AMud Type : PV (cp) : YP (lbf/100ft2) : Water Source : MV G Bore

Slurry Additives

Additive Name Concentration AmountType

8.1

12

Page: 8


Section 7 - LOT Summary

Leak Off Test

Wellbore No.: Wellbore Name:

Date of Test: Test Type:

Volume

(gal)

Pressure

(psi)

Section:

Test Depth (): AMW

EMW Shoe Depth ():

Leak Off Pressure (psi):

BH Pressure (psi):

Vol Pumped (galUS):

Vol Returned (galUS):

Casing Size (in):

Bottom Hole Pressure

(psi)

Page: 9


Section 8 - Activity Detail

23-Aug-2016

TaskPhase

Days on Well : 0.54Day : Days from Spud : 0.00

Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

0.00 11:00 18:00 7.00MOVE RM MOB P Rig Release from Flying Fox Creek 1 at 11:00hrs.

Loaded out Rig to 100%.Spotted Rig to 100% at Mountain Valley 1.Rigged down rig site offices and prepared camp for next day load out.

0.00 18:00 0:00 6.00PS RM RU P Crew rigged up at Mountain Valley 1 location under lights.

24-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

0.00 0:00 6:00 6.00PS RM RU P Crew rigged up at Mountain Valley 1 location under lights.

Mixed 175 bbls of 6% KCL & phpa/polymer spud mud into mud pits 1 & 2. Added 10ppb Cellplug & Fracseal medium to help mud pits seal. Lost ~20 bbls to mud pit seepage.

0.00 6:00 8:30 2.50PS RM MOB P Move main camp & rig site office from Flying Fox 1 to Mountain Valley 1.Road train combination:1) 2 x sleepers.2) 1 x kitchen & 1 x sleeper.3) 1 x laundry/gen & 1 x sleeper.4) 1 x SPU & 1 x rig site office.

Last load spotted at Mountain Valley 1 location at 08:30 hrs.

3.00 8:30 15:30 7.00PS DRILL RU P Rigged up Main Camp & Rig Site Offices.Completed lease clean up at Flying Fox 1 location.Completed general rig up items.Conducted Drops Inspection of Mast.Raised Mast.Conducted Earth Impedence tests.OCR witness interlock function test.(jib winch, haul winch, core winch crown stops. Pipe arm interlocks. Spin cage interlock. Topdrive interlocks).Shell pressure tested surface lines to 200 psi low 5 mins & 1000 psi 10 mins - solid test.Completed Pre-Spud checklist.Conducted Hazard Hunt. (8 found and closed out).Conducted Muster Drill.Functioned ESDs.Held Pre-Spud safety meeting.Made up 8.5" re-run Baker PDC Q504FX bit (last grade 0:0), NBS & 4.5" drill pipe.Tested mud pump & cellar pump.Lost ~15 bbls to mud pit seepage.

8.64 15:30 17:30 2.00COND1 DRILL DRL P Spudded Mountain Valley 1 at 15:30hr from 3.0m (bottom of cellar)

Drilled 8.5" Pilot Conductor Hole from 3m to 8.64m.200-250 gpm. 30-70 rpm @ 1 to 5k Tqe. 2-9 klbs WOB.Abrasive drilling, possible boulder stone related.Ream thru section till clear.No mud loss downhole. With pits holding.Confirmed conductor seat of hard claystone/siltstone/limestone.

8.64 17:30 18:45 1.25COND1 DRILL BHPULD P Layed down 8.5" BHA. Bit condition 0-2.Picked up 12.25" Rerun Smith 616 pdc bit (last grade 0-0) and x-over.

Page: 10


8.64 18:45 20:00 1.25COND1 DRILL HOPEN P Opened hole from 8.5" to 12.25" Conductor Hole.300-350 gpm.Ream thru section till clear.No mud loss downhole. With pits holding.

8.64 20:00 20:30 0.50COND1 DRILL BHPULD P Layed down 12.25" BHA. Bit condition: 0-0.

8.64 20:30 21:00 0.50COND1 CASE RU P Rig up to run 9-5/8" Conductor Casing.

8.64 21:00 23:00 2.00COND1 CASE CSHNDL P Run 9-5/8" Conductor Casing to 8.6 m.Trouble with crossthreaded joint. Fix same.Conductor Casing hung up at 7.5 m.Circulate at 7.0 m - ok.Attempt to wash down past 7.5m - no go, hydraulicing.Work & push conductor casing to bottom.Attempt to circulate - no go.

8.64 23:00 0:00 1.00COND1 CEMT CMT P No quick set cement plug pumped/required.Ran 20mm cement stinger to 7.5m - no go past this. Circ thru stinger pipe ok.Mixed & pumped 2 bbls of 14.0ppg cement slurry. With returns to surface. No top up job required.

25-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

8.64 0:00 6:00 6.00COND1 CEMT WOC P WOC. (Installed C-plate into rotary table to centralise conductor whilst cement sets).

Offline ops: Install blooie line and prepare for diverter installation.

Surface sample set at surface @ 06:00 hrs hrs.

8.64 6:00 7:15 1.25COND1 CEMT RD P Backed out Landing joint - no trouble. Rigged down 9-5/8" casing handling gear and drive sub.

8.64 7:15 7:30 0.25COND1 DIVRTR SAFEM P Held PJSM for Diverter installation. Reviewed 2 x procedures and discussed operations with crew.

8.64 7:30 14:30 7.00COND1 DIVRTR NU P Installed 2 x 2" nipples and 2" ball valves on to diverter riser.

Completed preparing work area.Carried out pre-layover mast checks. Laid-over Mast at 08:30 hrs Barricaded exposed cellar area.

Raised CSE permit. Lowered 9-5/8" BTC pin x 9" 3000 psi Flanged Riser into cellar with FEL. Screw on same to conductor hand tight.

Lowered potato masher onto riser and bolt on same.

Raised Mast at 10:15 hr. Torqued up Diverter riser to the Conductor. Lowered Mast at 10:45 hrs. Removed potato masher.

Held PJSM. Lifted and lowered Diverter/Mud cross with rated attachment and landed on to flanged riser. Nippled up Same.

Install centralising and support chains to cellar lugs.Installed Bell Nipple.

Connected blooie line, koomey lines and Installed flowline.

8.64 14:30 15:15 0.75SURF1 DRILL BHPULD P Pick up and make up 8.5" NOV FT616 (re-run SN A210846), complete with 6 x 13's nozzles. 8.5" near bit stab with non ported float and drill pipe. (6k ft.lb / 145 bar).

8.64 15:15 16:30 1.25SURF1 DRILL ACCTST P Run in hole to 5 m. Function test Diverter.

Perform accumulator drawdown & function test. Circulate & set alarms on flow shows x 2.

8.64 16:30 17:15 0.75SURF1 DRILL CIR P Conduct Diverter well control response (shallow gas) exercise. Review precautions and soft shut in method. Check gas detection.

Completed weighing up active system to 9.0 ppg with salt

Page: 11


8.64 17:15 17:45 0.50SURF1 DRILL SAFEM P Held Weekly Safety Meeting with both crews and 3rd party personnel.

50.20 17:45 0:00 6.25SURF1 DRILL DRL P Drill 8.5" Surface Hole from 8.64 m to 50.2 m.(Surface hole TD confirmed by WSG & OCR).

3 to 9 klb WOB.2.8 to 3.4 kft.lbs torque on bottom.2 kft.lbs torque off bottom.280 gpm.200-250 psi SPP.RPM 50-120.

9.2 to 9.0 lb/gal MW.36-40 sec/qt vis.

S/w up w/ pumps 12klbs.S/w down w/ pumps = 6klbs.S/w w/ pumps = 9klbs.

BHA = 8.5" Bit, 8.5" NBS, 1 x 6.5" DC spiral, 8.5" String Stab, x-over, 2 x 4.75" DCs slick, x/o, 4.5" drill pipe.

No losses noted.Used 30 bbls of mud during the day. Mojority pit seepage.Flow check at TD - well static.

Formations:Nullawan Member at 4m MD. (46m High to prognosis).Limmen Sandstone at 49m MD. (46m High to prognosis).

No flowline blockages. Max rate 320 gpm.Average ROP w/ connections = 6.7 m/hr.

26-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

50.20 0:00 3:00 3.00SURF1 DRILL POOH P Tripped out from 50.2 m to surface.Lay down BHA.Bit condition = 1-0-BT-C-X-I-RR-TD.Slick hole conditions.

50.20 3:00 6:30 3.50SURF1 DIVRTR ND P Lower Mast.Nippled down diverter.Disconnected blooie, flow & koomey lines.Centralising chains.Lift out 9" diverter with FEL.Install potato masher.Raise Mast.Back out 9-5/8" riser with potato masher.Lower Mast.Lift out riser.Raise Mast.

Offline Ops: Prepared/strapped 4.5" 11.6 lb/ft K55 BTC surface casing. Installed Foraco supplied 4.5" NR float collar and NR shoe with BakerLok.

50.20 6:30 7:15 0.75SURF1 CASE RU P Held PJSM. Reviewed SOP.

Rigged up to run 4.5" casing. Installed 4.5" BTC drive head sub and single joint elevators. Torqued up to drive sub to topdrive to above 4.5" casing make up torque. Rigged in handling gear and backed in flat bed trailer with casing.Removed hole cover and closed out CSE permit.

50.20 7:15 9:00 1.75SURF1 CASE CSHNDL P Ran 4.5" 11.6 lb/ft K55 BTC surface casing from surface to 49.12 m setting depth. Total 8 x joints Range #1 jnts, and 3.5m landing joint (1 x 1m pup and 1 x 2.5m pup joint combo).

BakerLok applied to the first 3 joints run in hole.

Slightly undertorqued landing joint connection.6 x centralisers run.

Page: 12


50.20 9:00 9:30 0.50SURF1 CASE RIGSER P Service Rig. Replaced water swivel.

50.20 9:30 10:00 0.50SURF1 CASE CIR P Circulated casing at 150spm/320gpm (7 x btms up). Hole clean. No losses.

Final mud check 9.00 ppg MW and 35 sec/qt vis.

Pumped 3bbls fresh water spacer with coring pump.

Held PJSM/reviewed JHA for bulker bag use and commenced mixing cement slurry

50.20 10:00 11:15 1.25SURF1 CASE RIGREP N Rig Repair.Water swivel seized & damaged hose.Replaced water swivel & damaged hose.Shell tested to 1000 psi for 10 mins - ok.

50.20 11:15 12:00 0.75SURF1 CEMT CMT P Installed Foraco cement head and changed out 4" cellar pump to 2" cellar pump whilst continue to mix cement slurry.

Installed chart recorder to cement head. OCR witnessed top NR plug loaded into cement head.

Mixed & pumped 11.9 bbl of 14.1 lb/gal GP cement slurry. Dropped top plug. Displaced with 2.23 bbl of 9.0 lb/gal mud.

Plug bumped (at 12:00 hrs). Pressure tested casing to 640 psi 10 min (580 psi at completion of test). Bled back with minimal fluid returns and floats holding.

~3 bbls Cement to surface.

Cement water analysis: 8.5 PH / 0 Cl / 88°F. Checked calibration of mud scales with fresh water - OK. Two surface cement slurry samples taken.

No losses whilst cementing or displacing. Cement to surface. No slumping noted and no top job up required.

50.20 12:00 16:00 4.00SURF1 CEMT WOC P Waited on cement. No slump noted. No top up jobs required.

Apply dry cement to cellar floor base to absorb extra moisture and harden cellar floor.

Surface samples hard at 16:00 hrs.

50.20 16:00 19:00 3.00SURF1 CEMT RUNWH P Slacked off Landing joint - OK.Removed cement head. Backed out and layed out landing joint. Lowered Mast.

Held PJSM, reviewed SOP and raised PTW.

Installed 4.5" x 7" BTC crossover and 7-1/16" BTC box Casing head with potato masher. Raised Mast.

Torqued up casing head and crossover to 4500 ft/lb. Lowered Mast.

Removed potato masher. Covered hole.

50.20 19:00 23:00 4.00PROD1 BOPSUR NU P Lowered and landed 7-1/6" 3000 psi BOP (Annular / Blind Rams / 2x manual Kill valves / 1x check valve / 1 x manual HCR / 1 x Hydraulically controlled HCR valve). Nippled up same:* Koomey hoses. * BOP centrailsing/support chains.* HCR line.* Kill line.* Choke manifold.* Flare line.* Flare line blocks & ignitor.* Bell Nipple.

Re-dug 6" flowline and cuttings box into place.

Page: 13


50.20 23:00 0:00 1.00PROD1 BOPSUR TSTPRS P Function tested BOP controls at Koomey and BOP control panel.

Test 1: Pressure tested casing / well head & BOP connections / Kill line & HCR connections against Blind Rams.

Test 2: Choke line, manifold valves 7,8 & 9.


27-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

50.20 0:00 3:30 3.50PROD1 BOPSUR TSTPRS P Completed Pressure testing well control equipment.






Test 8: Kelly cock.

Test 9: Gray valve.

Test 10: IBOP.


50.20 3:30 5:00 1.50PROD1 EVAL RU P Rigged up for HQ coring.HQ pipe sloop. Core recovery/ pump out area & equipment. Guiberson and overshot assembly.

50.20 5:00 6:30 1.50PROD1 EVAL RIH P Make up HQ core barrel.New 96mm 9-11 single stage HQ bit. New front & back reamers (gauged at 96.9mm).RIH on HQ pipe to 40 m.Conduct Well Control Drills.

50.20 6:30 7:00 0.50PROD1 DRILL DRLCMT P Held PJSM & equipment pre-starts.Drill HQ 96mm Core displacemnet plug & float collar from 42.52m to 42.82m.

80 ltr/min at ~100 psi.4-6k lb WOB.450 RPM.Torque 300 to 500 ft.lb.

50.20 7:00 8:00 1.00PROD1 DRILL POOH P Retrieve inner tube remove rubber debris. Drop inner tube, still pressure up, pull HQ string, remove rubber from bottom landing collar in barrel & core bit face. RIH HQ string.

51.60 8:00 10:00 2.00PROD1 DRILL DRLCMT P Drill HQ 96mm Core float and shoe track from 42.82 m to 51.6 m.

80 ltr/min at ~100 psi.4-6k lb WOB.450 RPM.Torque 300 to 500 ft.lb.

51.60 10:00 11:00 1.00PROD1 DRILL POOH P Stuck core tube. POOH HQ string and removed mushroomed core. (Sandstone/swelled claystone/sandstone) RIH.

Page: 14


53.30 11:00 11:45 0.75PROD1 EVAL CORE P HQ cored 96mm hole from 51.6 m to 53.3 m.Retrieving 6m inner tube as required.400-500 RPM.Torque: 400-500 ft.lb on bottom, 250 ft.lb off bottom

4-10 klb WOB. 60-100 lit/min at 200-400 psi.

MW = 9.1 ppg. 32-34 sec/qt Vis.6% KCL / PHPA mud.

No Losses.

53.30 11:45 12:00 0.25PROD1 EVAL CIR P Circulated hole clean at 100 lit/min and confirmed even mud weights of 9.1 lb/gal.

53.30 12:00 13:00 1.00PROD1 EVAL LOTFIT P Pull back inside casing shoe.Perform Leak off Test down HQ core string inside casing shoe.

105 psi. leak off pressure = 21.6 lb/gal EMW

28.7 gal pumped. Zero gal returned.

62.10 13:00 17:45 4.75PROD1 EVAL CORE P HQ cored 96mm hole from 53.3 m to 62.1m.Retrieving 6m inner tube as required.Fractured sandstsone core:0.8m, 2.36m, 0.6m, 4.0m, 0.7m, 0.3m, 2.37m recoveries.

450-750 RPM.Torque: 400-500 ft.lb on bottom, 200 ft.lb off bottom

8 klb WOB. 60-100 lit/min at 200-400 psi.

MW = 9.1 ppg. 32-34 sec/qt Vis.6% KCL / PHPA mud.

Losses increased from ~4-5 bbls/hr to ~15bbls/hr.

Average ROP in the Limmen Sandstone = 1.85 m/hr.

Flow checking prior to breaking HQ connections and installing Guiberson pack off. Flow checking and checking inline pressure gauge prior to removing Guiberson pack off and retrieving inner core barrel.

Constant pit monitoring. Recording pit levels/mud checks and drilling parameters, minimum once per hour.

62.10 17:45 18:15 0.50PROD1 EVAL FLWCHK P Flow check over trip tank.Static losses at 12 bbls/hr.

62.10 18:15 19:00 0.75PROD1 EVAL CIR P Mix Rheoplug/Cellplug bucket mix apply down string, chase with 10ppb LCM.Slowly pump thru bit & annulas with 10ppb LCM.Monitored static losses < 1bbl/hr.

Page: 15


72.60 19:00 0:00 5.00PROD1 EVAL CORE P HQ cored 96mm hole from 62.1 m to 72.6 m. Retrieving 6m inner tube as required.Fractured sandstsone core:0.9m, 3.5m, 4m, 0.2m, 1.5m recoveries.

750 RPMTorque: 520 ft.lb on bottom, 200 ft.lb off bottom.


MW = 9.2 ppg. 32 sec/qt Vis6% KCL / PHPA mud.

Rheoplug/Cellplug bucket mix applied down string prior to dropping inner tube on connections.

Small concentrate of Cellplug/FracSeal M added to active system.

Persistant losses.

Average ROP with retrieving inner tube = 2.1 m/hr.In the Limmen Sandstone Formation.



28-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

72.60 0:00 5:00 5.00PROD1 EVAL CORE N Losses equaling core pump rate.Monitor static losses and assessed at ~22 bbl/hr.

Treat same with LCM with static losses back to ~6 bblhr.Attempt to continue core ahead but dynamic total losses persistent. Limited on LCM concentration due to HQ core string. Inform SDE.

72.60 5:00 6:00 1.00PROD1 EVAL POOH N Tripped out HQ string & RIH NQ mule shoe and string.~6 bbls/hr static losses.

72.60 6:00 8:30 2.50PROD1 EVAL CIR N Mix 4bbl, 40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump through side entry with flexi drive pump and spot across wellbore with returns to surface. Hole volume in stinger = ~3.5 bbls.Lost 1 bbls whilst pumping LCM pill.

Rest & seep in place for 30 mins (whilst mix new mud).Down to 0.0 bbl/hr static losses.Displaced LCM pill out of well with 9.0ppg 6%KCL phpa/polymer mud at max core pump rate 100 ltrs/min.No dynamic losses.Monitor well for 5 mins - well static.

72.60 8:30 9:30 1.00PROD1 EVAL POOH N Tripped out NQ string and mule shoe.Flow check - well static.RIH HQ string (w/ re-run 9-11 stage 1 bit).Install fluid retention ball into back end spring in inner tube.

72.60 9:30 10:00 0.50PROD1 EVAL MONW N Circulate at 40 to 80 ltrs/min with total losses.Fill backside with 9.0ppg mud whilst circulating down HQ string, uanable to keep up, creating a dynamic vortex on annuls.

With no circulation, well maintained in a near static condition, <0.5 bbls/hr loss.Inform SDE.

Page: 16


72.60 10:00 10:45 0.75PROD1 EVAL MONW N Prepared to Core ahead 96mm HQ hole with no returns.Water hauler fill tanker. Prepare 2 x tubs and hoses for topping up annulas with water. Mix new mud.

72.60 10:45 11:00 0.25PROD1 EVAL SAFEM N Held pre job safety meeting with Foraco personnel.

120.60 11:00 0:00 13.00PROD1 EVAL CORE P Coring with mud through string with at 40 L/min with no returns, keeping annulus full with fresh water. Water truck on stand by filling tub.

HQ cored 96mm hole from 72.6 m to 120.6 m. Retrieving 6m inner tube as required. Dry release tool in use.Partial core recovery & possible cavernous ground.

Fractured sandstone core:Drilled 1.8 Recovered 1.2Drilled 3.2 Recovered 2.8Drilled 2.3 Recovered 0.5Drilled 3.7 Recovered 2.05Drilled 4.1 Recovered 4.1Drilled 4.9 Recovered 4.5Drilled 3.4 Recovered 3.4Drilled 5.6 Recovered 5.6Drilled 6.0 Recovered 5.8Drilled 6.0 Recovered 6.0Drilled 6.0 Recovered 6.0Drilled 6.0 Recovered 6.0

Drink rate on annulus = ~2000 - 3000 ltrs/hr.Pump rate = 2400 lt/hr loss - non circ time = ~1600 ltrs/hr.

400 - 550 RPMTorque: 750 ft.lb on bottom, 500 ft.lb off bottom.

4-10 klb WOB. 40 lit/min at 150-350 psi.

MW = 9.0-8.7 ppg. 32 sec/qt Vis6% KCL / PHPA mud.

Average ROP with retrieving inner tube = 3.69 m/hr.In the Dook creek member.



29-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

Page: 17


130.00 0:00 1:30 1.50PROD1 EVAL CORE P Coring with mud through string with at 40 L/min with no returns, keeping annulus full with fresh water.

HQ cored 96mm hole from 120.6 m to 130 m. Retrieving 6m inner tube as required. Dry release tool in use.

Drink rate on annulus = ~3000 - 4000 ltr/hr.


4-10 klb WOB. 40 lit/min at 150-350 psi.



130.00 1:30 3:00 1.50PROD1 EVAL CIR N Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl, 40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump through side entry with flexi drive pump and spot across wellbore with no returns surface. Rest & seep in place for 15 mins. (whilst mix new LCM).Monitor well filling annulus with water = 18 bbl/hr static losses.

Repeat process: Mix Rheoplug/Cellplug bucket mix apply down string. Mix 4bbl, 40ppb 9.4ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) (2-2-1 ratio). Pump through side entry with flexi drive pump and spot across wellbore with no returns surface. Rest & seep in place for 15 mins.Monitor well filling annulus with water = 9 bbl/hr static losses.

130.00 3:00 3:30 0.50PROD1 EVAL POOH N Running low on water:Tripped out HQ string at controlled rate inside 4 1/2" shoe.

130.00 3:30 9:00 5.50PROD1 EVAL MONW N Shut in well periodically opening and filling annulus with water checking static losses whilst filling surface tanks/pits with water = Static losses increased to 60 bbl/hr.


130.00 9:00 10:30 1.50PROD1 EVAL RIH N RIH with HQ string from shoe to 130m. Reamed through tight spots at 62m – 64m, 69m and 2m of fill on bottom. 60 - 80 bbls/hr static losses.

Page: 18


156.60 10:30 18:30 8.00PROD1 EVAL CORE P HQ cored 96mm hole from 130.0 m to 156.6 m.

Coring with mud through string at 40 lit/min with no returns. Constantly filling annulus with water to maintain full hole, with a drink rate @ 6~80 bbl/hr.



Drilled 6.0 Recovered 5.94Drilled 2.3 Recovered 2.4Drilled 3.4 Recovered 3.4Drilled 6.1 Recovered 6.1Drilled 6.1 Recovered 6.1Drilled 4.1 Recovered 4.0Drilled 2.0 Recovered 2.1




WSG confirmed TD at 156.6m in the Jamberline Member (11.5m below the Dook Creek P004 member).

Flow checking prior to breaking HQ connections and installing Guiberson pack off. Flow checking and checking inline pressure gauge prior to removing

Guiberson pack off and retrieving inner core barrel. Constant pit monitoring. Recording pit levels/mud checks and drillingparameters, minimum once per hour

156.60 18:30 19:00 0.50PROD1 EVAL POOH P POOH with HQ string at controlled rate from 156.6m to shoe with no drag filling annulus with water.

156.60 19:00 21:30 2.50PROD1 EVAL CIR N Mix 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45 sec/qt vis. Pump through side entry with flexi drive pump & seep down hole for 30 mins (whilst mix next pill).


Mix 2nd 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45 sec/qt vis. Pump through side entry with flexi drive pump & seep down hole for 30 mins.Static losses at 73 bbl/hr.

156.60 21:30 22:00 0.50PROD1 EVAL POOH P POOH with HQ string from shoe to surface filling annulus with water.

156.60 22:00 23:30 1.50PROD1 EVAL RIH N RIH with NQ string from shoe to TD @ 156.6m. Worked and reamed through tight spots at 83m. Worked and reamed obstruction to bottom.

60 - 80 bbls/hr static losses.

156.60 23:30 0:00 0.50PROD1 EVAL CIR N Mix 4bbl, 9.0ppg LCM pill Cellplug/Fracseal (M)/Fracseal (f) with 35 - 45 sec/qt vis. Pump through side entry with flexi drive and spot on bottom. Rest & seep for 30 mins.


30-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

156.60 0:00 0:30 0.50PROD1 EVAL POOH N Running low on water: Tripped out NQ string inside 4 1/2" shoe and Shut in well.

Page: 19


156.60 0:30 4:00 3.50PROD1 EVAL WOPE N One water hauler/ truck driver on site and out of working hours keeping well shut in until water hauling continues.

200bbl kept in surface tank as back up.

156.60 4:00 8:00 4.00PROD1 EVAL MONW N Resume hauling water to rig filling all surface tanks. Start filling hole with rig pump at 6 bbl/min and filling annulus with water. 150bbls of water pumped on annulus with no returns - Shut well in.

156.60 8:00 10:00 2.00PROD1 EVAL RIH P RIH with NQ string from shoe worked and reamed through tight spots at 62m, 78m & 89m. Worked and reamed fill unable to pass 153m with NQ string and shoe bit.

156.60 10:00 11:45 1.75PROD1 EVAL LOG P Rig up Weatherford Slimline logging truck and top sheave. Run #1: GR.Tools in hole at 10:10 hr. Tagged fill at 153.1m and logged up from there.Tools at surface 10:55 hr.Run #2: Tilt (Virticality).Tools in hole at 11:05 hr.Tools at surface at 11:30 hr.Rig down loggers.

156.60 11:45 13:45 2.00PROD1 EVAL POOH N Trip to shoe and back to determine if wireline tools could pass.

POOH with NQ string to shoe - No drag.

RIH with NQ string and tagged obstruction at 67m. Several attempts to run through with no success. Reamed and work through to TD.

156.60 13:45 15:00 1.25ABANP ZONISO CMT P Conducted Cement plug #1:156.6m to 50mPoured 20lt Rheoplug LCM pill down string prior to cement.

Mixed and pumped 5.31bbl of 14.0ppg GP cement slurry, with 1% Rheoplug and 3% Calcium chloride by weight of cement.


Tripped out dry from 156.6m to 30m and flushed string.

Mix water results for cement plugs:Chlorides 0 ppm7.5 to 8.5 pH.

156.60 15:00 17:45 2.75ABANP ZONISO CMT P Wait on cement to 100psi compressive strength as per lab test (2.8hr).


Confirmed tag 3 times then attempted to fill hole with water with no returns to surface.

156.60 17:45 19:15 1.50ABANP ZONISO CMT N Conducted Cement plug #2:73m to 20m Poured 20lt Rheoplug LCM pill down string prior to cement.

Mixed and pumped 2.8bbl of 14.0ppg GP cement slurry with 1% Rheoplug and 3% Calcium chloride by weight of cement.

Displaced with 20 Ltrs of water.No returns to surface.

Tripped out dry from 73m to surface.

Mix water results for cement plugs:Chlorides 0ppm7.5 to 8.5 pH.

Page: 20


156.60 19:15 22:00 2.75ABANP ZONISO CMT N Wait on cement to 100psi compressive strength as per lab test (2.8hr).

Attempt to fill hole up with water. 3 bbls of water (surface casing volume 2.5bbls). No returns indicating cement plug slumped.

Tripped in NQ pipe and tagged obstruction at 62m with 2klb, worked through and continued trip in and tagged TOC with 5klb at 72m

Plug #2 pumped in to loss zone at ~72m.

156.60 22:00 23:15 1.25ABANP ZONISO CMT N Conducted Cement plug #3:72m to 10m Poured 1.25bbl Rheoplug, Cellplug, Fracseal (M) LCM pill down string prior to cement.

Mixed and pumped 3.3bbl of 14.0ppg GP cement slurry with 1% Rheoplug and 3% Calcium chloride by weight of cement.Displaced with ~20lt of water.Returns to surface when last of plug was pumped.

Tripped out dry from 72m to surface shut in well on blind rams and lined up to read pressure on choke Zero pressure recorded.


156.60 23:15 0:00 0.75ABANP ZONISO CMT N Wait on cement to 100psi compressive strength as per lab test (2.8hr).

31-Aug-2016

TaskPhase


Activity Depth

(m)

From To Dur'n

(hrs)

Class Activity

156.60 0:00 2:00 2.00ABANP ZONISO CMT N Wait on cement to 100psi compressive strength.


156.60 2:00 3:30 1.50ABANP ZONISO CMT P Conducted Cement plug # 4:66m to 10m Poured 1.25bbl Rheoplug, Cellplug, Fracseal (M) LCM pill down string prior to cement.

Mixed and pumped 3.0bbl of 14.0ppg GP cement slurry with 1% Rheoplug and 3% Calcium chloride by weight of cement.


NQ pipe blocked up half way into pumping the slurry. POOH 6m and blocakge released. Attempted to pump the remaining slurry mix but blockage recurred.POOH another 6m and it released again. Pumped the remaining slurry mix down and observed cement to surface.

POOH to surface and observed the well was holding cement to surface. Opened the side outlet on bell nipple, ran in hole to 9m and flushed with fresh water.

Observed the well still holding fluid. POOH and shut in well on blind rams.


156.60 3:30 8:00 4.50ABANP ZONISO CMT P Wait on cement to 100psi compressive strength.

Tripped in NQ pipe and tagged TOC at 6m with 7klb. Laid down rod.

156.60 8:00 9:00 1.00ABANP ZONISO TSTPRS P Pressure tested cement plug against closed blind rams to 1000 psi for 15 mins - good test.

Page: 21


156.60 9:00 13:30 4.50ABANP WHD ND P Nippled down BOPs. Rigged out Choke Manifold, Flare line and related equipment.

156.60 13:30 17:00 3.50ABANP WHD ND P Removed Wellhead & crossover with Spud Masher.

Install P&A marker plate to casing stub.

Top Casing stub = 2.3m below GL (0.7m above cellar floor).

Cellar left in place for removal with excavator.

Release Foraco Rig 12 to Marmbulligan 1 at 17:00 hrs.

Page: 22


Page 23

Mountain Valley 1, P&A Well

STAGE: Stage no.: 1, Type: ABANDONMENT PLUG Cemented wellbore ID Hole size (in) Mountain Valley 1 3.78 MD top (m) TVD top (m) MD base (m) TVD base (m) 50 50 156.6 156.6 CT used Top plug used Bottom plug Press. prior bump N N N 10 Vol. returns (bbl) Volume lost (bbl) Bumped plug Bump press. 0 1 N 0 Press. held (psi) Pressure remaining (psi) Pressure held duration Float held 0 0 0 N STAGE SCHEDULE: Pumping start date/time: 30/08/2016 2:00:00 PM Pumping start date/time Pumping end date/time Rate (bbl/min) Volume (bbl) 30/08/2016 14:00 30/08/2016 14:02 4 5.3 Placement method

Rig Pumps Description: NEAT Fluid name Fluid type Mud type NEAT PLUG KCL/POLYMER Type Cement used volume (bbl) Total water volume used (bbl) Sacks used (94lb sacks) PLUG 1 5.3 20.3 19.75 Purpose Density (ppg) Class Yield (ft³/sk) ABANDONMENT PLUG 14 CLASS G 0 Source water location PV (cp) YP (lbf/100ft²) Excess slurry percent (%) Mountain Vly G-Bore 0 0 10 Fluid Additives

Additive name: Additive type: Additive concentration: Additive amount: CaCl2 Accelerator 3.000 (% BWOC) 55.00 (lbs) Rheoplug LCM 1.000 (% BWOC) 18.00 (lbs)


Page 24

STAGE: Stage no.: 2, Type: ABANDONMENT PLUG Cemented wellbore ID Hole size (in) Mountain Valley 1 3.78 MD top (m) TVD top (m) MD base (m) TVD base (m) 20 20 73 73 CT used Top plug used Bottom plug Press. prior bump N N N 10 Vol. returns (bbl) Volume lost (bbl) Bumped plug Bump press. 0 2.8 N 0 Press. held (psi) Pressure remaining (psi) Pressure held duration Float held 0 0 0 N STAGE SCHEDULE: Pumping start date/time: 30/08/2016 6:00:00 PM Pumping start date/time Pumping end date/time Rate (bbl/min) Volume (bbl) 30/08/2016 18:00 30/08/2016 18:01 4 2.8 Placement method

Rig Pumps Description: NEAT Fluid name Fluid type Mud type NEAT PLUG KCL/POLYMER Type Cement used volume (bbl) Total water volume used (bbl) Sacks used (94lb sacks) PLUG 2 2.8 10.7 10.4 Purpose Density (ppg) Class Yield (ft³/sk) ABANDONMENT PLUG 14 CLASS G 0 Source water location PV (cp) YP (lbf/100ft²) Excess slurry percent (%) Mountain Vly G-Bore 0 0 10 Fluid Additives



Page 25

STAGE: Stage no.: 3, Type: ABANDONMENT PLUG Cemented wellbore ID Hole size (in) Mountain Valley 1 3.78 MD top (m) TVD top (m) MD base (m) TVD base (m) 10 10 72 72 CT used Top plug used Bottom plug Press. prior bump N N N 20 Vol. returns (bbl) Volume lost (bbl) Bumped plug Bump press. 0 3 N 0 Press. held (psi) Pressure remaining (psi) Pressure held duration Float held 0 0 0 N STAGE SCHEDULE: Pumping start date/time: 30/08/2016 10:15:00 PM Pumping start date/time Pumping end date/time Rate (bbl/min) Volume (bbl) 30/08/2016 22:15 30/08/2016 22:16 4 3.3 Placement method

Rig Pumps Description: NEAT Fluid name Fluid type Mud type NEAT PLUG KCL/POLYMER Type Cement used volume (bbl) Total water volume used (bbl) Sacks used (94lb sacks) PLUG 3 3.3 12.4 12 Purpose Density (ppg) Class Yield (ft³/sk) ABANDONMENT PLUG 14 CLASS G 0 Source water location PV (cp) YP (lbf/100ft²) Excess slurry percent (%) Mountain Vly G-Bore 0 0 10 Fluid Additives



Page 26

STAGE: Stage no.: 4, Type: ABANDONMENT PLUG Cemented wellbore ID Hole size (in) Mountain Valley 1 3.78 MD top (m) TVD top (m) MD base (m) TVD base (m) 10 10 66 66 CT used Top plug used Bottom plug Press. prior bump N N N 30 Vol. returns (bbl) Volume lost (bbl) Bumped plug Bump press. 0.5 0 N 0 Press. held (psi) Pressure remaining (psi) Pressure held duration Float held 0 0 0 N STAGE SCHEDULE: Pumping start date/time: 31/08/2016 2:15:00 AM Pumping start date/time Pumping end date/time Rate (bbl/min) Volume (bbl) 31/08/2016 2:15 31/08/2016 2:16 4 3 Placement method

Rig Pumps Description: NEAT Fluid name Fluid type Mud type NEAT PLUG KCL/POLYMER Type Cement used volume (bbl) Total water volume used (bbl) Sacks used (94lb sacks) PLUG 4 3 11.2 11 Purpose Density (ppg) Class Yield (ft³/sk) ABANDONMENT PLUG 14 CLASS G 0 Source water location PV (cp) YP (lbf/100ft²) Excess slurry percent (%) Mountain Vly G-Bore 0 0 10 Fluid Additives



Page 27

Mountain Valley 1, P&A Barrier Schematic


Page 28

Mountain Valley1, Final Drilling Performance Report

SECTION 8 : RIG LOCATION SURVEY

SECTION 9 : COMPLETION DIAGRAM

Mountain Valley 1 was P&A, no completion diagram was prepared.

SECTION 10: DEVIATION SUMMARY

Refer to Verticality Log in Wireline Logs

SECTION 11: PRODUCTION TEST REPORT

No Production Tests were performed at Mountain Valley 1.

ENCLOSURE 1: WIRELINE LOGS

ENCLOSURE 2: CORE PHOTOS

Core photos not available at time of report.

BASIC DATA REPORT - geoscience.nt.gov.au

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Transcript of BASIC DATA REPORT - geoscience.nt.gov.au