club sugarloaf, page-132

2 weeks ago

measured depth 13364 feet

Approximately 1,500 feet of horizontal hole has now been drilled with total gas recorded in the range 300 to 700 units – up from a background of approximately 200 units. Intermittent minor gas flares were present over the last approximately 100 feet of drilling.

1 week ago

measured depth 13835

the well had reached a measured depth of 13,835 feet. Following minor changes in the rig configuration to more accurately measure gas readings, TCEI have advised an
increase in background values to 1,000 - 1,300 units. Gas flares have been observed of a more sustained and substantial nature whilst drilling during the last week and a significant flare occurred following a wiper trip.

yesterday


measured depth 14,385 feet

the well had reached a measured depth of 14,385 feet, which equates to approximately 2,500 feet of the planned 6,000 feet of horizontal section within the Austin Chalk.

The well has continued to produce gas whilst drilling, which has led to sustained flaring activity. In addition, when routine operations such as connections reduce the downhole pressure, larger flares have been observed on surface, indicating a response to drawdown**. Elevated gas readings of approximately 1,500 units have been consistently measured during the drilling of this portion of the horizontal section.

the last 2 weeks the well has encountered 1121 feet of flaring whilst drilling, and continues to produce gas whilst drilling!! we also had hurricane ike stop the drill for about 2 - 3 days, and perhaps a mechanical issue could be thrown in for good measure..

the background readings have increased as have the intesity and frequency of the flaring, each report there is more gas flaring and more upbeat remarks on the well. my view is that the kowalik well has encountered overpressurized chalks, and the longer the length the bigger the flares become each time they have a drill break and add another drill string:

"In addition, when routine operations such as connections reduce the downhole pressure, larger flares have been observed on surface, indicating a response to drawdown**"

couldnt be any clearer to me right now. its trying to produce whilst drilling and i have expectations that will continue to increase when the well is cleaned up and actually prepared for production.. currently everything they can do is being done with mudweights to try and get the well drilled to TD and stop it from producing..

imho they are in the right place right now with kowalik..