HORIZON WELL LOGGING      
 
MORNING REPORT FOR: 23-Feb-05     TIME: 6:00 AM  
COMPANY: U.S. Navy     WELL: FOH #3 D  
DEPTH @ 06:00: 7524' DEPTH YESTERDAY @ 06:00 7504' 24 HR FOOTAGE: 20'
LAST CASING RUN: 7" at 2938'   REPORT #: 4  
 
 
DRILLING DATA
DRILLING TIME: 1.7 hrs REAMING:   4 hrs.  
CIRCULATE TIME: 0.75 hrs.    
      WOB 15-20,000    
DRILL RATE:       RPM 60    
  MINIMUM - 8 ft/ hr    @ 7515'   PP 950    
  MAXIMUM -  35 ft/hr     @ 7511'   SPM 1 0    
  AVERAGE - 12 ft/hr       SPM 2 45    
                   
 
      MUD SYSTEM      
TEMPERATURE IN: MINIMUM - 100   CUMULATIVE MUD LOSS: 601 BBLS
Degrees F MAXIMUM - 136   MAXIMUM LOSS RATE: 9 B/HR
    CURRENT- 108   CURRENT LOSS RATE: 9 B/HR
TEMPERATURE OUT: MINIMUM - 129   LOSS REMARKS: Adding H2O @ 10 B/H to
Degrees F MAXIMUM - 161       maintain volume, 74 bbls lost
    CURRENT- N/A       over last 24 hrs.  
CARBON DIOXIDE: MINIMUM - 360        
ppm MAXIMUM - 360   TRIP TEMPERATURE: 161    
    CURRENT- 360   TRIP GAS 0      
DITCH GAS: MAXIMUM - 0      
UNITS AVERAGE - 0   PIT VOLUME 400    
 
LITHOLOGY SURVEYS
CURRENT LITHOLOGY: RHYOLITE          
AVERAGE LITHOLOGY: RHYOLITE        
GENERAL DESCRIPTION: Rhyolite, wht to pl grn, occ fnt mottling,      
mod hd to hd; cryptoxstln, tr amts of qtz & fspr phenos; uniform;    
sl chloritic; sl calc; tr amt of fine cubic pyrite.          
       
CUTTINGS SIZE:   2.4 mm avg          
CUTTINGS DENSITY: 15.3 ppg        
                   
     
COMMENTS                
  POH for NB#3, change bit, function test BOPE, RIH to 2930', fill pipe    
  RIH to 5792', fill pipe, RIH to 7341', tight hole, ream f/7341 to 7504'    
   drill to 7524', POH to shoe, change out swivel.    
       
  NB#2: Varel 537, 6.125"    545', 48.1 hrs.    
         
               degrees atmospheric temp