HORIZON WELL LOGGING      
 
MORNING REPORT FOR: 22-Feb-05     TIME: 6:00 AM  
COMPANY: U.S. Navy     WELL: FOH #3 D  
DEPTH @ 06:00: 7504' DEPTH YESTERDAY @ 06:00 7366' 24 HR FOOTAGE: 138'
LAST CASING RUN: 7" at 2938'   REPORT #: 3  
 
 
DRILLING DATA
DRILLING TIME: 14 hrs      
CIRCULATE TIME: 2 hrs.    
      WOB 15-20,000    
DRILL RATE:       RPM 60    
  MINIMUM - 4 ft/ hr    @ 7441'   PP 950    
  MAXIMUM -  51 ft/hr     @ 7462'   SPM 1 0    
  AVERAGE - 9.8 ft/hr       SPM 2 45    
                   
 
      MUD SYSTEM      
TEMPERATURE IN: MINIMUM - 134   CUMULATIVE MUD LOSS: 527 BBLS
Degrees F MAXIMUM - 140   MAXIMUM LOSS RATE: 9 B/HR
    CURRENT- 114   CURRENT LOSS RATE: 8 B/HR
TEMPERATURE OUT: MINIMUM - 159   LOSS REMARKS: Adding H2O @ 10 B/H to
Degrees F MAXIMUM - 162       maintain volume, 153 bbls lost
    CURRENT- N/A       over last 24 hrs.  
CARBON DIOXIDE: MINIMUM - 360        
ppm MAXIMUM - 360   TRIP TEMPERATURE:      
    CURRENT- 360   TRIP GAS        
DITCH GAS: MAXIMUM - 0      
UNITS AVERAGE - 0   PIT VOLUME 426    
 
LITHOLOGY SURVEYS
CURRENT LITHOLOGY: RHYOLITE          
AVERAGE LITHOLOGY: METATUFF, RHYOLITE   Survey @ 7465':  
GENERAL DESCRIPTION: Rhyolite, wht to pl grn, occ fnt mottling,      
mod hd to hd; cryptoxstln, dcrsng amts of qtz phenos; uniform; dcrsngly  
altered; sl chloritic; sl calc; dcrs amt of fine cubic pyrite.          
       
CUTTINGS SIZE:   2.5 mm avg          
CUTTINGS DENSITY: 15.5 ppg        
                   
     
COMMENTS                
  Drill from 7366' to 7504', circ, survey, POH for NB#3    
     
       
  MRT 276 deg @ 7465'    
  NB#2: Varel 537, 6.125"    545', 48.1 hrs.    
         
            39  degrees atmospheric temp