State of Arizona 04

08-08-16: 7:00 AM Arizona Time, 3202′ drilling ahead at five minutes per foot.

Estimate TD to 3600′ in three days.

This has been a most difficult well. We anticipated 12-14 days to drill and test the well.

Due to twisting off twice and whipstocking over, we have been on this well over 42 days; which puts the well over 2X over budget.

Please remember that in this wild-cat area we had problems getting to the bottom of the RCR#1 and RCR#2 wells, however, we have engineered the problems encountered and sailed down on the RCR#3 and RCR#4 without problems.

We expected to experience difficulties drilling below the Fort Apache to the Devonian for the first time. We have worked through them, and anticipate reaching TD. We will take what we have learned from the difficulty of drilling this well to implement programs as we did on the RCR#3 and RCR#4, and do not anticipate having these issues arise on the Devonian Development Wells.

Because of the excellent geological position of this well, and the time-line of re-permitting a new offset well to the current drill taking 6-8 weeks, we made the difficult decision to work through the mechanical problems, save the well, and work towards TD.

We will inform you when we drill-stem-test and log the well.

07-08-16: 7:00 AM Arizona Time, 2,633′.

07-06-2016: 7:00 AM Arizona Time, 2,405′.

07-05-2016: 8:00 AM Arizona Time, approximately 2,000′.

07-01-2016: 7:30PM Arizona Time, 8 7/8″ Surface Casing Cementing to Surface.

07-01-2016: Surface Hole Drilled to 732′

06-27-2016: State of Arizona 04 Spudded.

 

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Permit: Blackstone Permit SOAZ4