HORIZON WELL LOGGING      
                   
MORNING REPORT FOR: 20-Feb-05       TIME: 6:00 AM  
COMPANY: U.S. Navy         WELL: FOH #3 D  
DEPTH @ 06:00: 7135' DEPTH YESTERDAY @ 06:00 6959' 24 HR FOOTAGE: 176
LAST CASING RUN: 7" at 2938'       REPORT #: 1  
                   
                   
DRILLING DATA
DRILLING TIME: 12.5 hrs      
CIRCULATE TIME: 16 hrs since noon 19 Feb            
      WOB 14-20 K    
DRILL RATE:         RPM 60    
  MINIMUM - 6 ft/ hr    @ 7029'   PP 700-900    
  MAXIMUM -  63 ft/hr     @ 7058'   SPM 1 0    
  AVERAGE - 14 ft/hr         SPM 2 45    
                   
                   
      MUD SYSTEM      
TEMPERATURE IN: MINIMUM - 123   CUMULATIVE MUD LOSS: 180 BBLS
Degrees F MAXIMUM - 140   MAXIMUM LOSS RATE: 40 B/HR
    CURRENT- 134   CURRENT LOSS RATE: 10 B/HR
TEMPERATURE OUT: MINIMUM - 139   LOSS REMARKS:      
Degrees F MAXIMUM - 159            
    CURRENT- 159            
CARBON DIOXIDE: MINIMUM - 360            
ppm MAXIMUM - 360   TRIP TEMPERATURE: 152 @ 6959'  
    CURRENT- 360   TRIP GAS   0    
DITCH GAS: MAXIMUM - 0            
UNITS AVERAGE - 0   PIT VOLUME 403    
                   
LITHOLOGY SURVEYS
CURRENT LITHOLOGY: Greenstone            
AVERAGE LITHOLOGY: Metamorphics: greenstone and marble      
GENERAL DESCRIPTION: Black phyllite, with pyrite; white to lt gray      
marble, fine to coarsely crystalline; pale green to white meta-tuff; pale to   
dark green greenstone, trace hematite, pyrite.          
               
CUTTINGS SIZE:   2.3 mm Avg            
CUTTINGS DENSITY: 15.7 ppg            
                   
                   
COMMENTS                
  Clean out to 6959', started drilling new hole at 12:15, drill ahead with mud     
                   
                   
                   
                   
                   
            38  degrees atmospheric temp