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COLLIER-HOGAN 20-3H

DRILLING PERMIT APPLICATION FOR


FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION
PERMIT NO. 1349





Revised December 2012






Prepared For:

Dan A. Hughes Company, L.P.
P.O. Drawer 669
Beeville, Texas 78104
(361) 358-3752



Prepared By:


Passarella & Associates, Inc.
13620 Metropolis Avenue, Suite 200
Fort Myers, Florida 33912
(239) 274-0067
Schlumberger Water Services USA, Inc.
1567 Hayley Lane, Suite 202
Fort Myers, Florida 33907
(239) 481-6494


Project No. 12CRC2139
TABLE OF CONTENTS

Page

1.0 Introduction........................................................................................................................1


2.0 Confidentiality...................................................................................................................1


3.0 Operator.............................................................................................................................1


4.0 Agent/Consultants..............................................................................................................1


5.0 Well Information................................................................................................................2

5.1 Well Name.............................................................................................................2
5.2 Primary Geological Objective................................................................................2
5.3 Surface Location....................................................................................................2
5.4 Location Plat..........................................................................................................2


6.0 Environmental....................................................................................................................2

6.1 Stormwater.............................................................................................................2
6.2 Water Supply.........................................................................................................2
6.3 Wetlands and Wildlife...........................................................................................3
6.4 Site Environmental Management...........................................................................3
6.5 Hydrogen Sulfide Safety Plan................................................................................3
6.6 Gathering Lines and Pipeline.................................................................................3
6.7 Housing and Personnel ..........................................................................................3


7.0 Bottom Hole Location........................................................................................................3


8.0 Drilling Rig and Equipment...............................................................................................4


9.0 Drilling Operations............................................................................................................4


10.0 Proposed Drilling Program................................................................................................4


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Table of Contents (Continued)
Page

10.1 Casing and Cementing Program............................................................................4
10.2 Well Control Equipment........................................................................................4
10.3 Directional Drilling Program.................................................................................5
10.4 Drilling Fluids Program.........................................................................................5


11.0 Financial Security..............................................................................................................5




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LIST OF EXHIBITS

Page

Exhibit 1. FDEP Application for Permit to Drill (Form 3) ................................................E1-1


Exhibit 2. Certification to Transact Business in Florida.....................................................E2-1


Exhibit 3. Organization Report Form (Form 1)..................................................................E3-1


Exhibit 4. Lease Agreement ...............................................................................................E4-1


Exhibit 5. Agent Authorization Letters..............................................................................E5-1


Exhibit 6. Well Location Plat.............................................................................................E6-1


Exhibit 7. Location Map.....................................................................................................E7-1


Exhibit 8. Sketch of Pad Layout.........................................................................................E8-1


Exhibit 9. Aerial with Pad Layout......................................................................................E9-1


Exhibit 10. Aerial with Access Route.................................................................................E10-1


Exhibit 11. Hydrogen Sulfide Contingency Plan...............................................................E11-1


Exhibit 12. Precision Drilling Rig 314 Information...........................................................E12-1


Exhibit 13. Proposed Drilling Program..............................................................................E13-1


Exhibit 14. Casing and Cementing Program......................................................................E14-1


Exhibit 15. Wellbore Schematic.........................................................................................E15-1

iii


iv

List of Exhibits (Continued)

Page

Exhibit 16. Well Control Plan............................................................................................E16-1


Exhibit 17. Directional Drilling Program...........................................................................E17-1


Exhibit 18. Drilling Fluids Program...................................................................................E18-1


Exhibit 19. Performance Bond...........................................................................................E19-1


1.0 INTRODUCTION

The following information has been prepared to address the specific requirements of
Chapter 62C-26.003 of the Florida Administrative Code (F.A.C.) for a Florida
Department of Environmental Protection (FDEP) Application for Permit to Drill for
Collier-Hogan 20-3H (Well) (Permit No. 1349). The signed FDEP permit application
(Form 3) is included as Exhibit 1, and the following information represents the required
items of the permit application.


2.0 CONFIDENTIALITY

All information regarding the Well other than the supplemental documents supplied for
permit application within this document are to be held confidential as provided by statute
and rule. The information that is requested to be held confidential should include but not
be limited to: drilling reports, test results, well logging information, production reports,
and any geologic interpretations relative to the Well submitted by the applicant/permittee.


3.0 OPERATOR

The operator and permit applicant for this well is Dan A. Hughes Company, L.P., whose
address is:

Dan A. Hughes Company, L.P.
208 E. Houston
Beeville, Texas 78102

The Dan A. Hughes Company is a Texas limited partnership registered to transact
business in the State of Florida. Their certification to conduct business in Florida is
included as Exhibit 2. The Organization Report Form (Form 1) for the Dan A. Hughes
Company is provided as Exhibit 3.

Dan A. Hughes Company will lease the project area from the Collier Resources
Company, LLP. A Memorandum of Oil, Gas, and Mineral Lease is provided as Exhibit
4.


4.0 AGENT/CONSULTANTS

Passarella & Associates, Inc. and Schlumberger Water Services USA, Inc. have been
authorized to act as agents on behalf of the Dan A. Hughes Company. Agent
authorization letters are provided as Exhibit 5.




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5.0 WELL INFORMATION

5.1 Well Name

The Well name is Collier-Hogan 20-3H (FDEP Permit No.1349).

5.2 Primary Geological Objective

The primary geologic objective of Collier-Hogan 20-3H is the so-called rubble zone of
the Lower Sunniland Formation. The proposed depth of the pilot hole is 13,500 feet MD
(13,500 feet TVD), which will allow assessment of the upper Sunniland Formation,
Lower Sunniland Formation, and Pumpkin Bay Formation. If the evaluation determines
that the well will likely be commercial, it will be completed with the horizontal leg in the
Lower Sunniland rubble zone with a landing depth at 11,903 feet TVD and a final total
depth of 16,900 feet MD. The well location plat is provided as Exhibit 6.

5.3 Surface Location

The drilling site is located on agricultural lands within the Hogan Island Farm owned by
the Barron Collier Company. The site is located in Section 20; Township 47 South;
Range 28 East, Collier County (Exhibit 7). A sketch of the pad layout and an aerial
photograph with the layout of the pad is provided as Exhibits 8 and 9, respectively.
Access to the Well pad will be on existing farm roads from the north end of Oil Well
Grade Road (Exhibit 10).

5.4 Location Plat

The Well location plat has been prepared by Pickett & Associates, Inc. and is provided as
Exhibit 6.


6.0 ENVIRONMENTAL

6.1 Stormwater

The Well pad will be constructed with a two foot earth berm around the perimeter of the
operating area to contain all water on the site.

6.2 Water Supply

An industrial water use permit application for groundwater withdrawals associated with
the drilling operations was submitted to the South Florida Water Management District
(SFWMD) on October 12, 2012 and assigned SFWMD Application No. 121012-22.




2


6.3 Wetlands and Wildlife

The Well pad is located within an agricultural field, which is actively farmed as part of
the Hogan Island Farm operations. Access to the Well pad will be on existing roads
coming from the north end of Oil Well Grade Road. No wetlands or other surface waters
will be impacted by construction of the Well pad or access to the drilling site.

The Well location does not contain habitat for federal or state listed wildlife species. As
previously mentioned, the field is used for active crop production. No listed species have
been observed on-site.

6.4 Site Environmental Management

The drilling location will have secondary containment areas for oils, grease, and other
fluids. The secondary containment areas will be covered with a high-density polyethylene
liner system that will collect all rainwater and other fluids to a sump. The areas included
will be the rig substructure and the generator/fuel tank area. The containment berm
around the fuel tanks will retain 1.5 times the stored volume.

6.5 Hydrogen Sulfide Contingency Plan

In accordance with Chapter 62C-27.001(7), F.A.C., a hydrogen sulfide gas (H
2
S)
contingency plan prepared by Total Safety is provided as Exhibit 11. The H
2
S
contingency plan will go into effect at 10,500 feet, which is over 1,000 feet before the top
of the expected or unknown hazardous H
2
S zone.

6.6 Gathering Lines and Pipeline

Collier-Hogan 20-3H is an exploratory well. There are no plans yet for gathering lines
and pipeline.

6.7 Housing and Personnel

The majority of drilling personnel will be housed off-site. Some of the drilling personnel
will be housed in temporary trailers located within the pad. All wastewater will be
contained in storage tanks and removed from the site by a waste contractor. Drinking
water will be supplied by a bottled water contractor. An office trailer with living quarters
will be located on the pad for the drilling supervisor and rig manager.


7.0 BOTTOM HOLE LOCATION

The proposed bottom hole location is 1,342 feet FSL and 2,003 feet FWL at Latitude
26
o
2212.953 North and Longitude 81
o
3128.507 West in Section 21, Township 47
South, Range 28 East, Collier County, Florida (Exhibit 6).



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8.0 DRILLING RIG AND EQUIPMENT

The drilling rig to be used for the Well is Precision Drilling Rig 314 or equivalent
depending upon availability. Detailed information regarding Rig 314 is provided as
Exhibit 12.


9.0 DRILLING OPERATIONS

The operations will be underway 24 hours a day for approximately 60-80 days of drilling
and testing. There will be a crew of 12-18 persons on site during this time. The majority
of drilling personnel will be housed off-site. Some of the drilling personnel will be
housed on-site in temporary trailers. Electricity will be provided by diesel generator sets.
Sanitary waste will be collected in holding tanks and removed by a local contractor. Solid
waste will be placed in containers and hauled to a MSW landfill. Drill cuttings and
drilling fluids will be disposed of in a manner approved by FDEP. Water for drilling will
be supplied by on-site wells located at the northwest and southeast corners of the drilling
pad.


10.0 PROPOSED DRILLING PROGRAM

The procedures to drill the Well are presented in Exhibit 13 and major components of the
plan are summarized in the following sections.

10.1 Casing and Cementing Program

The proposed casing and cementing program prepared by Halliburton is provided as
Exhibit 14. The proposed wellbore schematic is included as Exhibit 15.

10.2 Well Control Equipment

Details of the well control program are included in Exhibit 16. The rig equipment listed
in the following table will be provided.

Hole Size Size/Pressure
Bottom to Top
Arrangement
Low/High Test Pressures
Rams/Annular
17 21 2M A N/A
12 21 2M A N/A
8 11 5M P/S/B/A 250-3500/ 250-2000
6 11 5M P/S/B/A 250-3500/ 250-2000

A Annular B Blind Ram P Pipe Ram S Drilling Spool

Note: Test 13-3/8 surface casing to 1000#. Test 9-5/8 & 7-5/8 casings to 1500#



4



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10.3 Directional Drilling Program

The directional drilling program prepared by Aim Directional Services, LLC is provided
as Exhibit 17.

10.4 Drilling Fluids Program

The proposed drilling fluids program prepared by Dynamic Drilling Fluids is included as
Exhibit 18.


11.0 FINANCIAL SECURITY

In accordance with Chapter 62C-26.002, F.A.C., the Dan A. Hughes Company, L.P. is
providing a performance bond for multiple wells (Form 2A) as security for the Well. A
copy of the performance bond is provided as Exhibit 19.

















EXHIBIT 1

FDEP APPLICATION FOR PERMIT TO DRILL (FORM 3)







































EXHIBIT 2

CERTIFICATION TO TRANSACT BUSINESS IN FLORIDA







































EXHIBIT 3

ORGANIZATION REPORT FORM (FORM 1)







































EXHIBIT 4

LEASE AGREEMENT







































EXHIBIT 5

AGENT AUTHORIZATION LETTERS







































EXHIBIT 6

WELL LOCATION PLAT







































EXHIBIT 7

LOCATION MAP




























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66TH AVE NE 66TH AVE NE
60TH AVE NE 60TH AVE NE
64TH AVE NE 64TH AVE NE
70TH AVE NE 70TH AVE NE
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PROJECT LOCATION
SEC 20, TWP 47 S, RNG 28 E
EXHIBIT 7. LOCATION MAP
F.L.
K.C.P.
10/31/12
10/31/12
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EXHIBIT 9

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EXHIBIT 9. AERIAL WITH PAD LAYOUT
COLLIER - HOGAN 20-3H











EXHIBIT 10

AERIAL WITH ACCESS ROUTE







































EXHIBIT 11

HYDROGEN SULFIDE CONTINGENCY PLAN




























Dan A. Hughes Company
CONTINGENCY PLAN
1

HYDROGENSULFIDECONTINGENCYPLAN

DanA.HughesCompany

DrillingPlan

WellCollierHogan203H
Lat.262220.102N.
Long.813227.096W.
N.741361.82
E479083.05
CollierCounty,Florida

H2SContingencyPlan#001Revision#1

Rig:Precision#314

ThisH2SContingencyPlanissubjecttoupdating

October2012

Dan A. Hughes Company


CONTINGENCY PLAN
2
TABLEOFCONTENTS

INTRODUCTION 3

PURPOSE 47
A. OperatingProcedures
B. ProcedurestobeInitiatedPriortoreaching1000AboveH2S
C. DrillingBelowContingencyPlanDepth
D. ProceduresProgram

CONDITIONS&H2SEMERGENCYPROCEDURES 814
A. DefinitionofOperationalConditions
B. ResponsibilitiesofWellSitePersonnel
C. InstructionsForIgnitingtheWell

SAFETYEQUIPMENT 1516

TOXICITYOFVARIOUSGASES 17

PROPERTIESOFGASES 1819

TREATMENTPROCEDURESFOH2SPOISONING 20

BREATHINGAIREQUIPMENTDRILLSON/OFFDUTY 21

HYDROGENSULFIDETRAININGCURRICULUM 2223

FITTEST 24

H2SEQUIPMENTLIST 2526

EMERGENCYPHONENUMBERS 2729

EVACUATIONOFGENERALPUBLIC 3032

ADDENDUM 33

OTHER:NOTES 34

DIRECTIONSTOWELLSITE 35

RESIDENTSLIST 36

LOCATIONRIGLAYOUT

ROEMAP(RADIUSOFEXPOSURE)
Dan A. Hughes Company
CONTINGENCY PLAN
3
I. INTRODUCTION

ThisH2SContingencyPlanwillgointoeffectatapproximately10,500'whichisover1000'beforethetopoftheexpectedor
unknownhazardousH2Szone.

Tobeeffective,theplanrequiresthecooperationandeffortofeachpersonparticipatinginthedrillingofan
H
2
Swell.Eachpersonmustknowhis/herresponsibilitiesandallemergencyandsafetyprocedures.He/she
shouldthoroughlyunderstandandbeabletousewithaccuracy,allsafetyequipmentwhileperforminghis/her
normalduties,ifthecircumstanceshouldarise.He/sheshouldthereforefamiliarizehimself/herselfwiththe
locationofallsafetyequipmentandchecktoseethatitisproperlystored,easilyaccessibleatalltimes,and
routinelymaintained.

ItistheintentionofDanA.HughesCompanyandtheDrillingContractortomakeeveryefforttoprovide
adequatesafeguardsagainstharmtopersonsontherigandintheimmediatevicinityfromtheeffectsof
hydrogensulfide,whichmaybereleasedintotheatmosphereunderemergencyconditions.However,the
initiativerestswiththeindividualinutilizingthesafeguardsprovided.Theideasandsuggestionsofthe
individualsinvolvedinthedrillingofthiswellarehighlywelcomedandactasafundamentaltoolforproviding
thesafestworkingconditionspossible.

Thedrillingrepresentativeisrequiredtoenforcetheseprocedures.Theyaresetupforyoursafetyandthe
safetyofallothers.

Dan A. Hughes Company


CONTINGENCY PLAN
4
II. PURPOSE

ItisDanA.HughesCompanysintenttoprovideasafeworkingplace,notonlyforitsemployees,butalsofor
othercontractorswhoareaidinginthedrillingofthiswell.Thesafetyofthegeneralpublicisofutmost
concern.Allprecautionswillbetakentokeepasafeworkingenvironmentandprotectthepublic.

Thereisapossibilityofencounteringtoxichydrogensulfidegas.Safetyproceduresmustbeadheredtoin
ordertoprotectallpersonnelconnectedwiththeoperationsaswellaspeoplelivingwithinthearea.

TheDanA.HughesCompanyrepresentativewillenforceallaspectsoftheH2SContingencyPlan.Thisjobwill
becomeeasierbyacarefulstudyofthefollowingpagesandtrainingandinformingallpersonnelonlocation
theirdutiesandresponsibilities.

A. OPERATINGPROCEDURES

GENERAL:

BeforethisH
2
Scontingencyplanbecomesoperational,thedrillingcontractorspersonnel,
necessaryservicepersonnel,andtheoperatorspersonnelshallbethoroughlytrainedinthe
useofbreathingequipment,emergencyprocedures,andresponsibilities.TotalSafetyshall
keepalistofallpersonnelwhohavebeenthroughtheonsiteH
2
Strainingprogramatthedrill
site.

AllpersonnelshallbegivenH2StrainingandthestepstobetakenduringH2Sconditionsunder
whichthewellmaybedrilled.Generalinformationwillbeexplainedabouttoxicgases,aswell
asthephysiologicaleffectsofH
2
Sandthevariousclassifiedoperatingconditions.Inaddition,
thereaderwillbeinformedhis/hergeneralresponsibilityconcerningsafetyequipmentand
emergencyprocedures.

TheTotalSafetyH
2
SSafetyConsultantshallmakeavailabletheH2SContingencyPlanforall
personneltoreadandunderstanditthoroughly.

Withoutexception,allpersonnelonthedrillsitemustproceeddirectlytotheTotalSafetyH
2
S
SafetyConsultantforlocationand/orassignmentofbreathingapparatus.Aninstructionand
orientationbriefingwillalsobeheld.

B. PROCEDURESTOBEINITIATEDPRIORTOREACHING1000
ABOVETHEH
2
SBEARINGZONE:

Alistofemergencyphonenumbersandcontactswillbeonlocationandpostedatthefollowing
locations:

1. DanA.HughesCompanyRepresentativesOffice
2. DrillingContractors,ToolpusherOffice
3. LivingQuartersArea

Dan A. Hughes Company


CONTINGENCY PLAN
5
AllsafetyequipmentandH
2
SrelatedhardwaremustbesetupasrequiredbyDanA.Hughes
Companywithregardtolocationofbriefingareas,breathingequipment,etc.Allsafety
equipmentmustbeinspectedperiodicallywithparticularattentiontoresuscitatorsand
breathingequipment.

Allpersonnelonthedrillsitewillbeassignedbreathingapparatus.Operatoranddrilling
contractorpersonnelrequiredtoworkinthefollowingareaswillbeprovidedwithbreathing
equipmentconnectedtoacascadebottledairsupply:

1. RigFloor

2. MudPits

3. Derrick

4. ShaleShaker

5. Cellar

TheTotalSafetyH
2
SSafetyConsultantwillberesponsibleforriggingupandmonitoringallH
2
S
continuousmonitoringtypedetectors.Theseunitsmustbetestedandrecalibratedbythe
TotalSafetyH
2
SSafetyConsultantduringdrillingconditions.IntheeventH
2
Sisdetected,or
whendrillinginazonecontainingH
2
S,theunitsshallbebumptestedatleastonceevery24
hours.Acalibrationlogwillbekeptonlocation.AllresultswillbereportedtotheDanA.
HughesCompanyRepresentative.

C. DRILLINGBELOWCONTINGENCYPLANDEPTH

Blowoutdrillswillbeheldasoftenasnecessarytoacquaintthecrewsandservicecompany
personneloftheirresponsibilitiesandtheproperprocedurestoshutinawell.AftertheDanA.
HughesCompanysrepresentativeissatisfiedwithblowoutdrillprocedures,adrillwillbe
conductedweeklywitheachcrew,asnecessary.ATotalSafetyH
2
SSafetyConsultantwillbeon
dutypriortoreachingcontingencyplandepthorasotherwisedeemednecessary.He/shewill
conductsafetytalksanddrills,maintainthesafetyequipment,consultandcarryoutthe
instructionsofthedrillingsupervisor.Allpersonnelallowedonthedrillsiteduringdrillingor
testingoperationswillbeinstructedintheuseofbreathingequipmentuntilsupervisory
personnelaresatisfiedthattheyarecapableofusingit.

Afterfamiliarization,eachpersonmustperformadrillwithbreathingequipment.Thedrill
shouldincludegettingthebreathingequipment,donningthebreathingapparatus,andworking
forashortperiod.Arecordshallbekeptofallpersonneldrilledandthedateofthedrill.

Rigcrewsandservicecompanypersonnelshallbemadeawareofthelocationofspareair
bottles,resuscitationequipment,portablefireextinguishers,H
2
Smonitorsanddetectors.
KnowledgeofthelocationoftheH
2
Smonitorsanddetectorsarevitalindeterminingasourgas
Dan A. Hughes Company
CONTINGENCY PLAN
6
locationandtheseverityoftheemergencyconditions.Inaddition,keypersonnelshallbe
trainedintheuseofaresuscitator.

AfterH
2
Shasbeeninitiallydetectedbyanydevice,allareasofpoorventilationshallbe
inspectedperiodicallybymeansofaportableH
2
Sdetectorinstrument.

D. PROCEDURESPROGRAM

1. DrillSite

a. Thedrillingrigwillbelocatedtoallowprevailingwindstoblowacrossthe
reservepit.

b. SafeBriefingAreaswillbeprovidedwithasafetyequipmenttraileratthe
PrimaryArea.ABreathingaircascadesystemwillbeavailableattheSecondary
Area.Personnelwillassembleatthemostupwindstationunderalarm
conditions,orwhensoorderedbytheDanA.HughesCompanys
representative,theContractorrepresentative,ortheTotalSafetyH
2
SSafety
Consultant.Windsocksorstreamerswillbeanchoredtovariousstrategicplaces
onapoleabout30feethigh,soitisineasyviewfromtherigflooratalltimes.

c. Warningsignswillbepostedontheperimeters.NoSmokingsignswillbe
postedaswell.

d. OnemultichannelautomaticH
2
SmonitorwillbeprovidedbyTotalSafetyand
thedetectorheadswillbeattheshaleshaker,bellnipple,mudpitsandonthe
rigfloorandmonitoredthere,orintheloggingunit.Shouldthealarmbeshut
offtosilencethesirens,theblinkerlightmustcontinuetowarnofH
2
Spresence.
Thesafetyrepresentativewillcontinuouslymonitorthedetectorsandwill
reactivatethealarmifH
2
Sconcentrationsincreasetoadangerouslevel.
Additionalsensor/swillbelocatedoutsidethelivingquartersarea,asneeded.

e. Amethodofescapewillbeopenatalltimes.

f. Explosionproofelectricfans(bugblowers)willbepositionedtoinsureadequate
circulationatallcriticallocations.Thesefansaretobesuppliedbyrigcontractor.

g. Ifavailable,landlinetelephoneservicewillbeprovidedorcellphonesprovided.
(Primarycommunicationsprovided)

h. Arigcommunicationsystemwillbeprovided,asneeded.

i. Agastrap,chokemanifold,anddegasserwillbeinstalled.

j. Akilllinesecurelyanchoredandofamplestrength,willbelaidtothewellhead
fromasafelocation.Thislineistobeusedonlyinanemergency.
Dan A. Hughes Company
CONTINGENCY PLAN
7

2. General

a. TheDanA.HughesCompanyrepresentativeand/ortheContractorsToolpusher
willbeavailableatalltimes.Thedrillingsupervisor,whileonduty,willhave
completechargeoftherigandlocationoperationsandwilltakewhateveraction
isdeemednecessarytoinsurepersonnelsafety,toprotectthewell,andto
preventdamage.

b. AMudEngineerwillbeonlocationatalltimeswhendrillingtakesplaceatthe
depthH
2
Smaybeexpected.Themudengineerwillbeabletoverifythe
presenceorabsenceofH2S.

Dan A. Hughes Company


CONTINGENCY PLAN
8
III.CONDITIONSANDEMERGENCYPROCEDURES

A.DEFINITIONOFOPERATIONALCONDITIONS

CONDITIONI POSSIBLEDANGER

WarningFlags Green

Alarms NoAlarm.Lessthan10ppm

CharacterizedBy: Drillingoperationsinzonesthatmaycontainhydrogensulfide.
ThisconditionremainsineffectunlessH
2
Sisdetectedandit
becomesnecessarytogotoConditionII.

GeneralAction: a. bealertforaconditionchange

b. Checkallsafetyequipmentforavailabilityandproper
functioning.

c. Performalldrillsforfamiliarizationandproficiency.

CONDITIONII MODERATEDANGER

WarningFlags Yellow

Alarms: Actuatesat10ppm.Continuousflashinglight.

CharacterizedBy: Drillingoperationsinzonescontaininghydrogensulfide.This
conditionwillremainineffectuntilhydrogensulfidecanbe
neutralizedbyaddingchemicalstothemudsystemorifit
becomesnecessarytogotoConditionIII.

GeneralAction: a. Bealertforaconditionchange

b. Checkallsafetyequipmentfor
availabilityandproperfunctioning.

` c. Followinstructions.

d. Allpersonsworkinginhazardous
areawillwearSCBAorworkunit.

Dan A. Hughes Company


CONTINGENCY PLAN
9
CONDITIONIII EXTREMEDANGER
WarningFlags Red

Alarms Actuateat15ppm.ContinuousSirensandFlashingLights

Characterizedby: CriticalwelloperationswhichposeanimmediatethreatofH
2
S
exposuretoonsitepersonnelandapotentialthreattothepublic.

GeneralAction: a. BreathingApparatuson.
b. Ifnotspecificallydesignatedtocontrolthewell,gotothe
appropriatesafebriefingarea.
c. Duringanyemergency,usethebuddysystemtoprevent
anyonefromenteringorbeingleftinagasareaalone,
evenwearingbreathingapparatus.
d. Personnelshallensurethattheirbreathingapparatusis
properlyfittedandoperationalbeforeenteringanH
2
S
contaminatedareatoprovideassistancetoanyonewho
maybeinjuredorovercomebytoxicgases.
e. Remaininsafebriefingareaandwaitforinstructions.
f. Ifwellisigniteddonotassumeareaissafe.SO2is
hazardousandnotallH2Swillburn.
H
2
SEMERGENCYPROCEDURES

A. DayToDayDrillingOperations

1. UpondiscoveringareleaseofH
2
Sgasintheambientairbywarningalarmsorinanyother
way.DoNotPanic.

2. HoldyourbreathandrapidlymoveuporacrosswindawayfromtheareaswhereH
2
S
sensingdevicesareinplace,totheclosestavailablebreathingapparatus,donyourmask,
continuetousebreathingapparatusuntilithasbeendeterminedthattheexposureofH
2
S
gasintheambientairnolongerexists.DoNotPanic!

3.UtilizetheBuddySystem,i.e.;selectandpairupeachperson
participatinginthedrillingofanH
2
Swellpriortoanemergency
situation.

4.HelpanyonewhoisovercomeoraffectedbytheH
2
Sgasbytaking
him/herupwindoutofthecontaminatedarea.

5. TakenecessarystepstoconfirmthereleaseoftheH
2
Sgasintotheambientair.

Whilewearingyourselfcontainedbreathingapparatus,determinebythereadout
onthefixedmonitorwhichsensingdevicehasdetectedthereleaseoftheH
2
Sgas.

Dan A. Hughes Company


CONTINGENCY PLAN
10
Utilizethehandheldsniffertypedeviceattheparticularsensingpointdisclosedon
thefixedmonitortocorroboratethefactthatH
2
Sgashasactuallybeenreleased.
Thatistoruleoutthepossibilityofafalsealarm.

6. RefertotheEmergencyPhoneNumbersandcallemergency
personnel.

7. TakethenecessarystepstosuppressthereleaseofH
2
Sgasintotheambientair.Comply
withDanA.HughesCompanysRepresentativetophysicallysuppressthereleaseofH
2
S
gasattheactualreleasepoint.

8. CheckallDanA.HughesCompanysmonitoringdevicesandincreasegasmonitoring
activitieswiththeportablehandoperatedH
2
Sandgasdetectorunits.

DoNotPanic!

TheDanA.HughesCompanysrepresentativewillassessthesituationandwithassistanceof
theContractorsRepresentativeandTotalSafetysH
2
SSafetyConsultant,willassigndutiesto
eachpersontobringthesituationundercontrol.

EmergencyProceduresattheDrillingRig:

WhentheH
2
Smonitorsactivatethesirenandblinkerlight,toxicgasispresent.DoNotPanic!

Putonyourgasmask
RenderAssistance
FollowInstructions

B. RESPONSIBILITIESOFWELLSITEPERSONNEL

IntheeventofareleaseofpotentiallyhazardousamountsofH
2
S,allpersonnelwill
immediatelyproceedupwindtothenearestdesignatedsafebriefingareaandputontheir
protectivebreathingapparatus.Considerationwillbegiventoevacuatingnonessential
personnel,assituationwarrants.

1. DanA.HughesCompanysWellsiteRepresentatives

a. IfDanA.HughesCompanyswellsiterepresentativeisincapacitatedornoton
location,thisresponsibilitywillfalltotheToolpusher/Driller.

b. Immediatelyuponassessingthesituation,setthisplaninto
actionbyinitiatingtheproperprocedurestocontainthegasandnotifythe
appropriatepeopleandagencies.

c. EnsurethatthealarmareaindicatedbythefixedH
2
S
MonitorischeckedandverifiedwithaportableH
2
Sdetector.
Dan A. Hughes Company
CONTINGENCY PLAN
11

d. ConsultPusher/drillerofremedialactionsasneeded.

e. Ensurethatnonessentialpersonnelproceedtothesafebriefingarea.

f. Ensurelocationentrancebarricadesarepositioned.Keepthenumberofpersons
onlocationtoaminimumduringhazardousoperations.

g. Consulteachcontractor,servicecompany,andallothersallowedtoenterthe
site,thatH
2
Sgasmaybeencounteredandthepotentialhazardsthatmayexist.

h. AuthorizetheevacuationoflocalresidentsifH
2
Sthreatenstheirsafety.

i. Nonessentialpersonnelshouldbeevacuatedfromlocation
Situationwarrants.

2. Toolpusher

a. Toolpusher/DrillerwillassumeresponsibilitiesofDanA.HughesCompanys
wellsiterepresentativeifthatpersonisincapacitatedornotonlocation.

b. EnsurethatthealarmareaindicatedbythefixedH
2
Smonitorischeckedand
verifiedwithaportableH
2
Sgasdetector.

c. ConferwithDanA.HughesCompanyswellsiterepresentativeor
superintendentanddirectremedialactiontosuppresstheH
2
Sandcontrolthe
well.

d. Ensurethatpersonnelatthesafebriefingareaareinstructedonemergency
actionsrequired.

e. Ensurethatpersonnelatthedrillfloorareaareinstructedonemergencyactions
required.

f. Ensurethattheappropriatesafetyandemergencyproceduresareobservedby
allpersonnel.

g. Ensurethatallpersonsareaccountedforandprovidedemergencyassistanceas
necessary.

3. MudEngineer

a. Runasulfidecheckontheflowlinemud.

b. TakestepstodeterminethesourceoftheH
2
Sandsuppressit.CausticandH
2
S
scavengershallbeaddedtothemudasnecessary.
Dan A. Hughes Company
CONTINGENCY PLAN
12

4. H
2
SSafetyConsultant

a. CheckandverifywithaportableH
2
Sdetectorthealarmareaindicatedbythe
fixedH
2
Smonitor.AdvisetheToolpusher/DrillerandDanA.HughesCompanys
wellsiterepresentativeoffindings.

b. IfH
2
Sisflared,checkforsulfurdioxide(SO
2
)neartheflareasnecessary.Take
hourlyreadingsatdifferentperimeters,logreadingsandrecordonlocation.

c. Ensurethatpersonnelatthesafebriefingareaareinstructedonemergency
actionsrequired.

d. Ensurethatexplosionproofbugblowersarepositionedasnecessarytodisperse
H
2
Sawayfromworkersperformingtheirjobtasks.Thesewillbeprovidedbyrig
contractor.

e. Ensurethattheappropriatewarningflagsaredisplayed.

f. EnsurethatallpersonnelareinS.C.B.A.asnecessary.

g. Ensurethatallpersonsareaccountedforandprovideemergencyassistanceas
necessary.

h. Bepreparedtoevacuaterigiforderisissued.

5. GeneralPersonnel&Visitors

a. Ifnotspecificallydesignatedtocontrolthewell,gototheappropriate(upwind)
safebriefingarea.Allnonessentialpersonnelshouldbeevacuated,assituation
warrants.

b. Duringanyemergency,usethebuddysystemtopreventanyonefromentering
orbeingleftinagasareaalone,evenwearingbreathingapparatus.

c. Provideassistancetoanyonewhomaybeinjuredorovercomebytoxicgases.
Personnelshallensurethattheirbreathingapparatusisproperlyfittedand
operationalbeforeenteringH
2
Scontaminatedarea.

d. Remaininsafebriefingareaandwaitforinstructions.

C. INSTRUCTIONSFORIGNITINGTHEWELL

1. TheToolpusher/DrillerwillconferwithDanA.HughesCompanyswellsite
representativewhowillsecuretheapprovalofhigherDanA.HughesCompanys
authority,priortoignitingthewell,ifatallpossible.
Dan A. Hughes Company
CONTINGENCY PLAN
13
TheToolpusher/Drillerwillberesponsibleforignitingthewellintheeventofsevere
wellcontrolproblems.Thisdecisionshouldbemadeonlyasalastresortinsituations
whereitisclearthat:
a. Humanlifeandpropertyareendangered,or

b. Thereisnohopeofcontrollingthewellundercurrentconditions.

2. Oncethedecisionhasbeenmade,thefollowingproceduresshouldbefollowed:

a. Twopeoplewearingselfcontainedbreathingapparatuswillbeneededforthe
actuallightingofthewell.Theymustfirstestablishtheflammableperimeterby
usinganexplosimeter.Thisshouldbeestablishedat30%to40%ofthelower
flammablelimits.

b. Aftertheflammableperimeterhasbeenestablishedandeveryoneremoved
fromthearea,theignitionteamshouldselectasiteupwindofthewellfrom
whichtoignitethewell.Thissiteshouldofferthemaximumprotectionandhave
aclearpathforretreatfromthearea.

c. Theignitionteamshouldhavesafetybeltsandlanyardsattachedandmanned
beforeattemptingignition.Iftheleakisnotignitedonthefirstattempt,movein
20to30feetandfireagain.Continuetomonitorwiththeexplosimeterand
NEVERfirefromanareawithover75%oftheLowerExplosiveLimit(LEL).If
havingtroubleignitingthewell,tryfiring40degreesto90degreesoneitherside
ofthewell.

d. Ifignitionisnotpossibleduetothemakeupofthegas,thetoxicperimetermust
beestablishedandevacuationcontinueduntilthewelliscontained.

e. Allpersonnelmustactonlyasdirectedbythepersoninchargeofthe
operations.

NOTE: Afterthewellisignited,burninghydrogensulfide(H
2
S)willconverttosulfur
dioxide(SO
2
),whichisalsoahighlytoxicgas.

DONOTASSUMETHEAREAISSAFEAFTERTHEWELLISIGNITED

NormalOperations

1. Responsibilitiesofwellsitepersonnel

a. WellsiteRepresentative

1. NotifyH
2
SSafetyConsultantofexpecteddatetoreachContingencyPlan
implementationdepth(1,000abovesuspectedH
2
Sbearingzone)orprior
tostartingwellwork.
Dan A. Hughes Company
CONTINGENCY PLAN
14

2. EnsureH
2
SSafetyConsultantcompletesrigupprocedurespriorto
reachingContingencyPlaneffectivedepth.

3. Restrictthenumberofpersonnelatthedrillingrigorwellsitetoa
minimumwhiledrilling,startingwellwork,testingorcoring.

4. EnsureweeklyH
2
Sdrills/trainingareperformed.

b. Toolpusher

1. EnsurethatnecessaryH
2
Ssafetyequipmentisprovidedontherig,and
thatitisproperlyinspectedandmaintained.

2. EnsurethatallpersonnelarethoroughlytrainedintheuseofH
2
Ssafety
equipmentandperiodicdrillsareheldtomaintainanadequatelevelof
proficiency.

c. AllPersonnel(IncludingVisitors)

1. Remaincleanshaven.Beardsandlongsideburnsdonotallowaproper
facepieceseal.

2. ReceiveH
2
Ssafetytrainingonlocation

3. FamiliarizeyourselfwiththerigsContingencyPlan.

4. Inspectandpracticeputtingonyourbreathingapparatus.

5. Knowthelocationofthesafebriefingareas.

6. Keepyourselfwindconscious.Bepreparedtoquicklymoveupwind
andawayintheeventofanyemergencyinvolvingreleaseofH
2
S.

d. TotalSafetyH
2
SSafetyConsultant

1.. Conducttrainingasnecessarytoensureallpersonnelarefamiliarwith
thecontingencyproceduresandtheoperationofemergencyequipment.
3. CheckallH
2
Ssafetyequipmenttoensurethatitisreadyforemergency
use:

Checkpressuredailyforeachshiftonbreathingapparatus(both30
minuteandhippacks)tomakesuretheyarechargedtofullvolume.

Checkpressureoncascadeairbottlestoseethattheyarecapableof
rechargingbreathingapparatus.
Dan A. Hughes Company
CONTINGENCY PLAN
15

Checkoxygenresuscitatortoensurethatitischargedtofullvolume.

CheckH
2
Sdetectorsdailyforeachshift(fixedandportable),and
explosimeter,toensuretheyareworkingproperly.

4. ProvideaweeklyreporttoDanA.HughesCompanyswellsite
representativedocumenting:

CalibrationsperformedonH
2
Sdetectors.

ProperlocationandworkingorderofH
2
Ssafetyequipment.

Attendanceofallpersonnel,trainedorretrained,andtheircompany.

Weeklydrillsincludinglistofpersonnelparticipatingandsummaryof
actions.

Dan A. Hughes Company


CONTINGENCY PLAN
16
IV. SAFETYEQUIPMENT

Allrespiratorswillbedesigned,selected,usedandmaintainedinconformancewithANSIZ88.2,American
NationalStandardforrespiratoryprotection.

Personalprotectiveequipmentmustbeprovidedandused.Thosewhoareexpectedtouserespiratory
equipmentincaseofanemergencywillbecarefullyinstructedintheproperuseandtoldwhytheequipment
isbeingused.Carefulattentionwillbegiventotheminutedetailsinordertoavoidpossiblemisuseofthe
equipmentduringperiodsofextremestress.

Selfcontainedbreathingapparatusprovidescompleterespiratoryandeyeprotectioninanyconcentrationof
toxicgasesandunderanyconditionofoxygendeficiency.Thewearerisindependentofthesurrounding
atmospherebecausehe/sheisbreathingwithasystemadmittingnooutsideair.Itconsistsofafullfacemask,
breathingtube,pressuredemandregulator,airsupplycylinder,andharness.Purebreathingairfromthe
supplycylinderflowstothemaskautomaticallythroughthepressuredemandregulatorwhichreducesthe
pressuretoabreathinglevel.Uponinhalation,airflowsintothemaskataratepreciselyregulatedtothe
usersdemand.Uponexhalation,theflowtothemaskstopsandtheexhaledbreathpassesthroughavalvein
thefacepiecetothesurroundingatmosphere.Theapparatusincludesanalarm&gaugewhichwarnsthe
wearertoleavethecontaminatedareaforanewcylinderofairorcylinderrefill.

Toenablemen/womentoworkinatoxicatmosphereforprolongedperiodsoftime,ahoselinewithaquick
connectcanbeaddedtotheunit,therebyconnectingittoacascadesystembreathingair.Theinstallationofa
hosebankseriesofmanifoldsontherigfloorconnectedtoaseriesofcascadebottlesataremotelocation,
allowsallpersonneltoremainwithmasksonforanextendedperiod.

Thederrickmanisprovidedwithafullfacepieceunitattachedtoa5minuteescapecylinder,connectedto
oneormore300cubicfootaircylindersthroughaquickdisconnectT.Incaseevacuationviatrolleyor
ladderbecomesnecessary,hewillalsohaveafullbottleofairinhisownselfcontainedbreathingapparatus.

Allrespiratoryprotectiveequipment,whennotinuse,shouldbestoredinaclean,cool,dryplace,andoutof
directsunlighttoretardthedeteriorationofrubberparts.Aftereachuse,themaskassemblywillbescrubbed
withsoapandwater,rinsedthoroughly,anddried.Aircylinderscanberechargedtoafullconditionfroma
cascadesystem.

Personnelineachcrewwillbetrainedinthepropertechniquesofbottlefilling.

Theprimarypieceofequipmenttobeutilized,shouldanyonebeovercomebyhydrogensulfide,istheoxygen
resuscitator.

Whenasphyxiationoccurs,thevictimmustbemovedtofreshairandimmediatelygivenartificialrespiration.
Inordertoassurereadiness,thebottlesofoxygenwillbecheckedatregularintervalsandanextratankkept
onhand.

Handoperatedpumptypedetectorsincorporatingdetectortubeswillgivemoreaccuratereadingsof
hydrogensulfide.Thepumptypedrawsairtobetestedthroughthedetectortubecontainingleadacetate
silicagelgranules.Presenceofhydrogensulfideintheairsampleisshownbythedevelopmentofadark
Dan A. Hughes Company
CONTINGENCY PLAN
17
brownstainonthegranules,whichisthescalereadingoftheconcentrationofhydrogensulfide.Bychanging
thetypeofdetectortubeused,thisdetectormayalsobeusedforsulfurdioxide(SO
2
)detectionwhen
hydrogensulfide(H
2
S)isbeingburnedintheflarearea.

Provisionsmustbemadeforthestorageofallsafetyequipmentasisevidentfromtheforegoingdiscussion.
Allequipmentmustbestoredinanavailablelocationsothatanyoneengagedinnormalworksituationsisno
morethanonebreathawayfromamask.

Dan A. Hughes Company


CONTINGENCY PLAN
18
V.TOXICITYOFVARIOUSGASES

ChemicalSpecificLethal
4

CommonNameFormulaGravity
1
PEL(OSHA)
2
STEL
3
ppm

HydrogenCyanide HCN 0.94 10 150300

HydrogenSulfide H
2
S 1.18 10 15ppm 600

SulfurDioxide SO
2
2.21 2 5ppm 1000

Chlorine CL
2
2.45 1

CarbonMonoxide CO 0.97 35 200/1Hour1000

CarbonDioxide CO
2
1.52 5000 5% 10%

Methane CH
4
0.55 90000 Combustible
(9%)(Above5%inair)

1
Air=1.0
2
Permissible Concentrationatwhichisbelievedthatall
workersmayrepeatedlybeexposed,dayafterday,withoutadverseeffect.
3
STELShortTermExposureLimit.
4
Lethal Concentrationthatwillcausedeathwithshorttermexposure.

Reference: APIRP49,September1974ReissuedAugust1978

Dan A. Hughes Company


CONTINGENCY PLAN
19
VI.PROPERTIESOFGASES

A. CARBONDIOXIDE
1. CarbonDioxide(CO
2
)isusuallyconsideredinertandiscommonlyusedtoextinguishfires.
It is 1.52 times heavier than air and will concentrate in low areas of still air. Humans
cannotbreatheaircontainingmorethan10%CO
2
withoutlosingconscienceorbecoming
disorientationinafewminutes.ContinuedexposuretoCO
2
afterbeingaffectedwillcause
convulsions,coma,andrespiratoryfailure.
2. The threshold limit of CO
2
is 5000 ppm. Shortterm exposure to 50,000 ppm (5%) is
reasonable. This gas is colorless, odorless, and can be tolerated in relatively high
concentrations.

B. HYDROGENSULFIDE
1. HydrogenSulfide(H
2
S)isacolorless,transparent,flammablegas.Itisheavierthanairand,
hence,mayaccumulateinlowplaces.
2. AlthoughtheslightestpresenceofH
2
Sintheairisnormallydetectableby its
characteristic"rottenegg"odor,itisdangeroustorelyontheodorasa means of
detecting excessive concentrations because the sense of smell is rapidly lost, allowing
lethal concentrations to be accumulated without warning. The following table indicates
thepoisonousnatureofH
2
S.

CONCENTRATION
EFFECTS
%H
2
S PPM GR/100SCF
1

0.001 10 .65 Safefor8hourswithoutrespirator.Obviousandunpleasant
odor.
0.0015 15 0.975 Safefor15minutesofexposurewithoutrespirator.

0.01 100 6.48 Killssmellin315minutes;maystingeyesandthroat.


0.02 200 12.96 Killssmellquickly;stingseyesandthroat.

0.05 500 32.96 Dizziness;breathingceasesinafewminutes;needprompt


artificialrespiration.
0.07 700 45.92 RapidUnconsciousness;deathwillresultifnotrescued
promptly.
0.1 1000 64.80 Instantunconsciousness,followedbydeathwithinminutes.
1
GrainsPer100CubicFeet

Dan A. Hughes Company


CONTINGENCY PLAN
20
C. SULPHURDIOXIDE

1. SulfurDioxide(SO
2
)isacolorless,nonflammable,transparentgas.

2. SO
2
isproducedduringtheburningofH
2
S.AlthoughSO
2
isheavier
thanair,itcanbepickedupbyabreezeandcarrieddownwindat
elevatedtemperatures.SinceSO
2
isextremelyirritatingtotheeyes
andmucousmembranesoftheupperrespiratorytract,ithas
exceptionallygoodwarningpowersinthisrespect.Thefollowing
tableindicatesthetoxicnatureofSO
2
:

CONCENTRATION
EFFECTS
%SO
2
PPM
0.005 3to5 Pungentodor,normallyapersoncandetectSO
2

inthisrange.
0.012 12 Throatirritation,coughing,constrictionofthe
chest,tearingandsmartingofeyes.
0.15 150 Soirritatingthatitcanonlybeenduredforafew
minutes.
.05 500 Causesasenseofsuffocation,eventwiththe
firstbreath.

Dan A. Hughes Company


CONTINGENCY PLAN
21
VII.TreatmentProceduresforHydrogenSulfidePoisoning

A. Removethevictimtofreshair.

B. Ifbreathinghasceasedorislabored,beginresuscitationimmediately.

Note: This is the quickest and preferred method of clearing victim's lungs of contaminated air;
however,underdisasterconditions,itmaynotbepracticaltomovethevictimtofreshair.Insuch
instances,wherethoserenderingfirstaidmustcontinuetowearmasks,aresuscitatorshouldbe
used.

C. ApplyresuscitatortohelppurgeH
2
Sfromthebloodstream.

D. Keepthevictimatrestandpreventchilling.

E. Getvictimunderphysician'scareassoonaspossible.

Dan A. Hughes Company


CONTINGENCY PLAN
22
VIII.BREATHINGAIREQUIPMENTDRILLSFORON&OFFDUTYPERSONNEL

AnH
2
SDrillandTrainingSessionmustbegivenonceaweektoALLondutypersonnelwithoffdutypersonnel.
OndutyandOffdutypersonnelwillreverserolesonalternatedrills.
AnH2S drillandtrainingsessionmust begivenoncea weektoalloffduty personnelincoincidence withon
dutypersonnelreversingrolesonalternatedrills.

The purpose of this drill is to instruct the crews in the operation and use of breathing air and H
2
S related
emergency equipment and to allow the personnel to become acquainted with using the equipment under
workingconditions.Thecrewsshouldbetrainedtoputonthebreathingairequipmentwithinoneminuteafter
anH
2
Semergencyhasbeenalerted.

The following procedure should be used for weekly drills. The Dan A. Hughes Companys supervisor must be
satisfiedthatthecrewsareproficientwiththeequipment.
1. Allpersonnelshouldbeinformedthatadrillwillbeheld.

2. TheH
2
SSafetyTechnicianshouldinitiatethedrillbysignalingashewouldifhe
3. detectedH
2
S.

4. Personnelshoulddontheirbreathingapparatus.

5. Once the breathing air equipment is on, the H2S Technician should check all personnel to insure
properoperation.

AtrainingandinformationsessionwillbeconductedaftereachdrilltoansweranyH
2
Srelatedquestionsandto
coveroneormoreofthefollowing:
ConditionII,andIIIalertsandstepstobetakenbyallpersonnel.
TheimportanceofwinddirectionwhendealingwithH
2
S.
Properuseandstorageofalltypesofbreathingequipment.
Properuseandstorageofoxygenresuscitators.
ProperuseandstorageofH
2
Sdetectors(MiniChecksorequivalent).
The"buddysystem"andtheprocedureforrescuingapersonovercomebyH
2
S.
Responsibilitiesandduties.
LocationofH
2
Ssafetyequipment.
Otherpartsofthe"H
2
SContingencyPlan"thatshouldbereviewed.

NOTE:Arecordofattendancemustbekeptforweeklydrillsandtrainingsessions.

Dan A. Hughes Company


CONTINGENCY PLAN
23
IX.HYDROGENSULFIDETRAININGCURRICULUM

(FOREMPLOYERS,VISITORS,ANDCONTRACTORS)
EACHPERSONWILLBEINFORMEDONTHERESTRICTIONSOFHAVINGBEARDSANDCONTACTLENS.THEYWILL
ALSOBEINFORMEDOFTHEAVAILABILITYOFSPECTACLEKITS.

AFTERTHEH2SEQUIPMENTISRIGGEDUP,ALLPERSONNELWILLBEH2STRAINEDANDPUTTHROUGHADRILL.
ANYDEFICIENCIESWILLBECORRECTED.

TrainingCompletioncardsaregoodforoneyearandwillindicatedateofcompletionorexpiration.Personnel
previously trained on another facility and visiting, must attend a "supplemental briefing" on H2S equipment
andproceduresbeforebeginningduty.Visitorswhoremainonthelocationmorethan24hoursmustreceive
full H2S training given all crew members. A "supplemental briefing" will include but not be limited to:
Location, use and donning of an assigned respirator, familiarization with safe briefing areas, alarms with
instructiononresponsibilitiesintheeventofareleaseandhazardsofH2Sand(SO2,ifapplicable).Atraining
anddrilllogwillbekept.

TopicsforfullH2Strainingshallinclude,butnotbelimitedtothefollowing:

1. BriefIntroductiononH2S
A. SlideorVCRpresentation(IfAvailable)
B. H2Smaterialwillbedistributed
C. Reemphasizetheproperties,toxicity,andhazards
1. ofH2S
D. SourceofSO2(ifapplicable)

2. H2SDetection
A. DescriptionofH2Ssensors
B. Descriptionofwarningsystem(howitworks&it's
1. location)
C. ActuallocationofH2Ssensors
D. Instructiononuseofpumptypedetector(Gastec)
E. Useofcarddetectors,ampoules,ordosemeters
F. Useofcombustiblegasdetector
G. Otherpersonneldetectorsused
H. AlarmconditionsI&II,
I. SO2alarms(ifapplicable)

3. H2SProtection
A. Typesofbreathingapparatusprovided(30minuteSCBA&SKAPAKwithvoicediaphragms
forcommunication)
B. Principleofhowbreathingapparatusworks
C. Demonstrationonhowtousebreathingapparatus
D. Locationofbreathingapparatus


Dan A. Hughes Company
CONTINGENCY PLAN
24

4. CascadeSystem
A. Descriptionofcascadesystem
B. Howsystemworks
C. Cascadelocationofrigwithreferencetobriefingareas
D. Howtousecascadesystem(withSKAPAKS&refill)
E. Importanceofwinddirectionandactuallocationofwindsocks
F. Purposeofcompressor/function(ifoneisonsite)

5. H2SRescueandFirstAid
A. Importanceofwinddirection
B. Safebriefingarea
C. Buddysystem
D. H2Ssymptoms
E. Methodsofrescue

6. HandsonTraining
A.Donning/familiarizationofSCBA
B. Donning/familiarizationofSKAPAK
C.Familiarizationofcascades
D.UseofO2resuscitator
E. Alarmconditionsupwindbriefingareas,etc...
F. Dutiesandresponsibilitiesofallpersonnel
G.Proceduresforevacuation
H.SearchandRescueteams

7. Certification
A. Testingonmaterialcovered

Dan A. Hughes Company


CONTINGENCY PLAN
25
X.EMPLOYEEINFORMATION

TOTALSAFETYUSINC.,FITTEST

EmployeeName:___________________________________Date:_________________

DateofEmployeeMedicalEvaluation:_____________________

MedicalStatus(circle): Unrestricted LimitationsonUse UseNotAuthorized

RESPIRATORINFORMATIOIN

RespiratorType(Dustmask,SCBA,etc):____________________________________

Brand:__________________________________________________________________

Size:(circle): XS S M L XL

FITTESTINFORMATION

TypeofFitTestPerformed:
Quantitative
PortaCount FitFactor:______________
Fittester3000 FitFactor:______________

Qualitative
IrritantSmoke Passed/Failed
IsoamylAcetate(BananaOil) Passed/Failed
Saccharin Passed/Failed
Bitrex Passed/Failed

IherebycertifythatthisfittestwasconductedinaccordancewiththeOSHAFitTestingProtocolsfoundin
AppendixAof1910.134.

FitTesterName(Print):__________________________________________________________

Signature:________________________________________________Date:_________________

Dan A. Hughes Company


CONTINGENCY PLAN
26
XI.H
2
SSAFETYSERVICES

HYDROGENSULFIDESAFETYPACKAGE

RESPIRATORYSAFETYSYSTEMS

QTY DESCRIPTION

1 20BottleTrailer
12 30MinutePressureDemandSCBAw/Pigtail
8 5MinuteWorkUnits
2 Regulators
4100LowPressureHoseLines
10 50LowPressureHoseLines
16 35Pigtails
1 12ManManifold
1 6ManManifold
1 3ManManifold
1 8BottleCascade

DETECTIONANDALARMSYSTEMS

1 4ChannelH2SMonitor
4 H2SControllers
5 H2SSensors
1 ExplosionProofAlarm
1 PortableQuadMeter
1 Sensidyne/RaeManualGasDetectionPump
4 BoxesH2STubes(VariousRanges)
4 BoxesS02Tubes(VariousRanges)
1 CalibrationKit
1 RecordKeepingpaperwork(ie:Training,Calibration,Inspection,DailyReports)
1 RigUpBox

Dan A. Hughes Company


CONTINGENCY PLAN
27
ADDITIONALSAFETYEQUIPMENT

QTY DESCRIPTION

1 WindsockwithPoleandBracket
1 Megaphone(Bullhorn)w/SpareBatteries
1 WellConditionSignw/Green,Yellow,RedFlags
1 PrimaryandSecondarySafeBriefingAreaSigns
1 FlarePistol,w/Flares
1 WhiteMarkerBoardwithErasersandMarkers
1 SafetyHarnessw/50SafetyLine
1 O2Resuscitator
1 Litter
1 24PieceFirstAidKit

Contact:
LarrySneath:lsneath@totalsafety.com
ChrisMcDonald:cmcdonald@totalsafety.com

18008332974Office

Dan A. Hughes Company


CONTINGENCY PLAN
28
EMERGENCYPHONENUMBERS

DanA.HughesCompanyRepresentatives

JeffIlseng(OPsMgr)3613623304
HankKremers(C.O.O)3613623842

RigCompany

PrecisionRig#314
KevinSatter 7134356256
7135534242

HydrogenSulfideSafetyContractor

TotalSafety
5237HallsMillRd.BldgJ
Mobile,AL36695 8008332974

FIREDEPARTMENTS 911

BigCypressNationalPreserve 2396952000
33100TamiamiTrailEast 8007880511
Ochopee,FL34141

SHERIFFDEPARTMENTS 911

CollierCountySherriff 2393542377

AMBULANCE 911

EmergencyMedicalServices 2392528459
2705S.HorseshoeDr.
Naples,FL34104

AirAmbulanceAmerica 8008270745
AACLSadvancedAirAmbulance 8006333590
AngelMedflightWorldAirAmbulance 8666949310

HOSPITALS 911

EMTdetermined
Dan A. Hughes Company
CONTINGENCY PLAN
29

HIGHWAYDEPARTMENT

FloridaHighwayPatrol 2393542377
3205BeckBlvd.
Naples,FL34114

FEDERALAGENCIES

U.S.EnvironmentalProtectionAgency Phone:4045629900
Region#4 Fax:4045628174
SamNunnAtlantaFederalCenter TollFree:8002411754
61ForsythSt.SW
Atlanta,GA30303

OSHA Phone:4045622300
RegionalOffice Fax:4045622295
61ForsythSt.SW
Atlanta,GA30303

FortLauderdaleAreaOffice Phone:9544240242
8040PetersRoad,BldgH100 Fax:9544243073
FortLauderdale,FL33324

NATIONALRESPONSECENTER 8004248802
ToxicChemicalandOilSpills

TallahasseeOffice
Florida DEP/Bureua of Mine Reclamation Phone: 850-488-8217
Oil and Gas Section V-Mail: 850-413-8192
2051EastPaulDiracDR./M.S.715 Fax:8504881254
Tallahassee,FL32310

CONTACTS:

EdGarrett
ProfessionalGeologist/Administrator 8504888217Ext12

LeviSciara
EngineeringSpecialistII 8504888217Ext64

Dan A. Hughes Company


CONTINGENCY PLAN
30
JohnLeccese Cell:8503936309
EngineeringSpecialistIV

SteveSpencer
ProfessionalGeologist 8504888217Ext65

DaveTaylor
GeophysicalOperationsEngineer 8504888217Ext26

FortMyersFieldOffice
FloridaDEP/BureauofMineReclamation Office2393445611
2295VictoriaAvenue,Suite179 Fax8504120590
Ft.Myers,FL33901

CONTACTS:

PaulAttwood Cell:2392294293
ProfessionalGeologist Home:2399474348

PierreBruno Cell:2392294291
EnvironmentalSpecialistIII Home:2392601738

Dan A. Hughes Company


CONTINGENCY PLAN
31

XII. EVACUATIONOFTHEGENERALPUBLIC

Theproceduretobeusedinalertingnearbypersonsintheeventofanyoccurrencethatcouldposeathreatto
lifeorpropertywillbearrangedandcompletedwithpublicofficialsindetail,priortodrillingintothehydrogen
sulfideformations.

Intheeventofanactualemergency,thefollowingstepswillbeimmediatelytaken:

1. TheDanA.HughesCompanysrepresentativewilldispatchsufficientpersonneltoimmediately
warneachresidentandtransientsdownwindwithinradiusofexposurefromthewellsite.
Thenwarnallresidenceintheradiusofexposure.Additionalevacuationzonesmaybe
necessaryasthesituationwarrants.

2. TheDanA.HughesCompanysrepresentativewillimmediatelynotifyproperauthorities,
includingtheSheriffsOffice,HighwayPatrol,andanyotherpublicofficialsasdescribedabove
andwillenlisttheirassistanceinwarningresidentsandtransientsinthecalculatedradiusof
exposure.

3. TheDanA.HughesCompanysrepresentativewilldispatchsufficientpersonneltodiverttraffic
inthevicinityawayfromthepotentiallydangerousarea.Aguardtotheentranceofthewell
sitewillbepostedtomonitoressentialandnonessentialtraffic.

4. General:

A. Theareaincludedwithintheradiusofexposureisconsideredtobethezoneof
maximumpotentialhazardfromahydrogensulfidegasescape.Immediateevacuation
ofpublicareas,inaccordancewiththeprovisionsofthiscontingencyplan,isimperative.
Whenitisdeterminedthatconditionsexistwhichcreateanadditionalarea(beyondthe
initialzoneofmaximumpotentialhazard)vulnerabletopossiblehazard,publicareasin
theadditionalhazardousareawillbeevacuatedinaccordancewiththecontingency
plan.

B. Intheeventofadisaster,afterthepublicareashavebeenevacuatedandtraffic
stopped,itisexpectedthatlocalcivilauthoritieswillhavearrivedandwithinafew
hourswillhaveassumeddirectionofandcontrolofthepublic,includingallpublicareas.
DanA.HughesCompanywillcooperatewiththeseauthoritiestothefullestextentand
willexerteveryeffortbycarefuladvicetosuchauthoritiestopreventpanicorrumors.

C. DanA.HughesCompanywillattempttohaveappropriatemanagementpersonnelat
thedisastersiteassoonaspossible.Thecompanyspersonnelwillcooperatewithand
providesuchinformationtocivilauthoritiesastheymightrequire.

D. Oneoftheproductsofthecombustionofhydrogensulfideissulfurdioxide(SO
2
).
UndercertainconditionsthisgasmaybeequallyasdangerousasH
2
S.Apumptype
Dan A. Hughes Company
CONTINGENCY PLAN
32
detectordevice,whichdeterminesthepercentofSO
2
inairthroughconcentrationsin
ppm,willbeavailable.Althoughnormalairmovementissufficienttodissipatethis
materialtosafelevels,theSO
2
detectorshouldbeutilizedtocheckconcentrationsinthe
proximityofthewellonceeveryhour,orasnecessaryandthesituationwarrants.Also,
ifanylowareasaresuspectedofhavinghighconcentrations,personnelshouldbemade
awareoftheseareas,andstepsshouldbetakentodeterminewhetherornottheselow
areasarehazardous.

Dan A. Hughes Company


CONTINGENCY PLAN
33

ADDENDUM:
Intheeventthatconditionsrelatingtodrillingofthesubjectwellrequireevacuationofpersonnelinthe
proximityofthedrillinglocationduetoareleaseofhydrogenSulfidegas,inadditiontothehousingand
reasonableperdiemforthedisplacedpeopleinvolved,theoperatorwillprovideappropriatereimbursement
forreasonableandcompetitiveevacuationandboardingcostsforhorsesand/orcattlethatmustbeincluded
intheevacuation.Formalevacuationwouldbetheresultofadecisionanddeclarationresultingfromthe
safetyevaluationoftheoperator,theprofessionalsafetycompanyemployedonlocation,andlocalpublic
emergencyofficials.

Dan A. Hughes Company


CONTINGENCY PLAN
34

OTHER:NOTES:

Dan A. Hughes Company


CONTINGENCY PLAN
35

DIRECTIONSTOWELLSITE:

FromNaples
FromIntersectionofI75andImmokaleeRoad,go20milesEasttointersectionofOilWellGradeRoad.Turn
LeftontoOilWellGradeRoadandfollowroadfor1mile.TurnleftontoNewRoad,go.8milesandturnleft
onnewroadtorig.

Dan A. Hughes Company


CONTINGENCY PLAN
36

RESIDENTSLIST:

Ref
#
ContactName Phone# #ofHousehold Address Special
Needs
Transportation
1 NOTHOME 20950
Immokalee
Road
Yes
2 CorkscrewIndependent
BaptistChurch
Small
Congregation
22022
Immokalee
Road
No Yes
3 AmandaAnnido Didnot
Disclose
2 No Yes












EXHIBIT 12

PRECISION DRILLING RIG 314 INFORMATION







































EXHIBIT 13

PROPOSED DRILLING PROGRAM



























Dan A. Hughes Company, L.P.
Collier-Hogan 20-3H
Permit #1349

Drilling Program

This procedure is to serve only as a general guideline for the drilling of this well and will be reviewed and
modified when required as determined by actual wellbore conditions encountered in the drilling
operations. Safety and prudent drilling practices will take priority at all times.


DanA.HughesCompany,L.P. CollierHogan203H

Permit#1349
DanA.HughesCompany,L.P.
DrillingPrognosis
CollierCounty,Florida

Date: 11302012

Well: CollierHogan203H Field: Wildcat


County: Collier API#: 09021______
Location: Section20,T47SR28E
@Surface:Section20
@BHL:Section21
Elevation: 20.6(GL)GL;RKBis27aboveGL
ProposedTD: 13,500(MD)/13,500(TVD)PilotHole
16,900MD/11,903(TVD)LateralHole
Directions: FromNaples,fromintersectionofInterstate75&ImmokaleeRoadgo20mileseastto
intersectionofOilWellGradeRoad.TurnLeftontoOilWellGradeRoadtoRig/Well
site.

PROCEDURESUMMARY
1. Drive20Conductordowntorefusalaround250
2. N/Ua202000psi,divertersystemwith8diverterlines.
3. Drilla171/2surfaceholeto1950.
4. Run133/854.5#/ft,J55BT&Csurfacecasingandcementtosurface.
5. Drilla121/14holethroughtheBoulderZoneto4000.
6. Run95/847#/ftP110GBButtressintermediatecasingto4000&cement
backto3500.
7. Drill81/2verticalpilotholedownto13,500MD/13,500TVD.
8. RunOpenHoleLogsonwireline.
9. Plugbackwithcementkickoffplug.Dressoffcementto11,187.
10. Directionallydrillfrom11,187MDdownto12,000MD/11,836TVDtocasing
point.
11. Run75/833.7#/ft,L80LT&Ccasingto12,000&cementbackto9000.
DanA.HughesCompany,L.P. CollierHogan203H

12. Drilloutcement&shoewith61/2bit.Directionallydrill&buildto90degrees
by12,312MD/11,903TVD.
13. POOH&RIHwithnewdirectionaltools.Drillhorizontallyfrom12,312MDto
16,900MD/11,903TVD.
CASINGPROGRAM
Depth(MD) Depth(TVD) HoleSize CasingSize WT(ppf) Grade Thread
250 250 Driven 20 wt B PE
1950 1950 171/2 133/8 54.5 J55 BT&C
4000 4000 121/4 95/8 47# P110 BT&C
12,000 11,836 81/2 75/8 33.7# L80 LT&C
16,900 11,903 61/2 OpenHole

CASINGSPECIFICATIONS
CasingSize WT(#/ft) Grade Thread InternalYield Collapse JtStrength
133/8 54.5# J55 BT&C 3560 2070 931,000
95/8 47# P110 BT&C 9440 5300 1,500,000
75/8 33.7# L80 LT&C 7900 6560 820,000

ANTICIPATEDFORMATIONS
FORMATION SUBSEA MD TVD ESTPOREPRS(EMWPPG)
BoulderTop 2052 2100 2100
Boulderbase 3452 3500 3500
LakeTrafford 11,475 11,523 11,523 9.1
Sunniland 11,654 11,702 11,702 9.1
RubbleZone 11,839 11,887 11,887 9.1
RubbleLateral 11,880 11,928 11,928 9.1
PuntaGorda 11,892 11,940 11,940 9.1
PumpkinBayTop 13,141 13,189 13,189 9.1
PumpkinBayBase 13,441 13,489 13,489 9.1
DanA.HughesCompany,L.P. CollierHogan203H

BOPPROGRAM
HOLE SIZE/ BottomtoTop Low/HighTestPressures
SIZE PRESURE Arrangement Rams/Annular

171/2 213/42M A N/A

121/4 213/42M A N/A

81/2 115M P/S/B/A 2503500/2502000

61/2 115M P/S/B/A 2503500/2502000

P=PipeRamB=BlindRamA=AnnularS=DrillingSpool

NOTE:WellControlwilluseIADCacceptedmethods.ThisareaisknownmoreforLostCirculationthan
forkicks.PicturesofBOPsinAttachments.Testsurfacecasingto1000#beforedrillingoutcement.
TestIntermediate&productioncasingsto1500#.

FloridaDept.ofEnvironmentalProtectionrulesarethattheBOPswillbetestedeveryweek
orcalledandaskforextension.

CEMENT/FLOATEQUIPMENT&CENTRALIZATION

Surface:
133/8casingx171/2hole@1950

Plannedcementvolumeisbasedon85%openholeexcess.

Spacer: 30bblsoffreshwater
LeadCement: 1035sacksHFC12ExtendacemSystem,mixedat12.0ppg
TailCement: 575sacksStandardCementHalcemSystem,mixed@15.6ppg
TopOut: 100sacksStandardCement+2%CaCl2
Run133/8casingandcentralizew/bowsprings6aboveshoe,6abovefloatcollar,
andoneperjointlatchedoverthenext5collarsforatotalof7centralizers.PumpLead
cementuntilcementtosurfaceandthenswitchtoTailcement.Leavecementabove
shoefordrillout.CatchcementreturnsinCatchTank.

Intermediate:
95/8casingx121/4hole@4000

Plannedcementvolumeisbasedon100%openholeexcess,500ofAnnularfill

Spacer: 50bbls
TailCement: 330sacksPremiumCementThermacemSystemmixedat16.4ppg
DanA.HughesCompany,L.P. CollierHogan203H

Usetop&bottomplugsanddisplaceat8bpmwithrigpump.Reciprocatecasingw/15
stroke.Leavecement(linecapacity)aboveplugsfordrillout.

Production:
75/8casingx81/2hole@12,000

Spacer: 40bblsofTunedSpacerIII
LeadCement: 140sacks50/50Poz+2%gelEconocemSystemmixedat14.2ppg
TailCement: 185sacksPremiumCement+additivesBONDCEMSystemmixedat16.4ppg

Usetop&bottomplugsanddisplaceat7bpmwithrigpump.

WELLHEADPROGRAM

135/83KC22x133/8SOW
135/83Kx115KC22
115Kx71/1610KTCM

DRILLINGFLUIDSPROGRAM

Hole Depthfrom DepthTo MW WL


Size MD/TVD MD/TVD ppg API/HTHP pH Comments

171/20 1950 8.48.8N/C 9.09.5 Freshwater(gel,Lime,Polymer)


121/41950 4000 9.09.22520 9.09.5 Freshwater(gel,Lime,Polymer)
LostCirculationIntervalinBoulderZone21003500
81/2 4000 6000 8.68.92520 9.09.5 Freshwater(dispersedpolymer)
81/2 6000 13,500 8.99.12510 9.09.5 Freshwater(dispersedpolymer)
LogPilotHole&setcementplug&KickOff@11,187
81/2 11,187 12,000/11,8368.99.1 2510 9.09.5 Freshwater(dispersedpolymer)
Set75/8casing
61/2 12,000/11,83616,900/11,9038.89.02520 9.09.5 Freshwater(HECpolymer)

EVALUATIONPROGRAM

MudLoggeronlocationandoperationalby10,000
QuadCombologfrom13,500to10,000intheVerticalPilotHole.
Drillpipeconveyed(61/2openhole)fromTDbackto12,000MD/11,836TVD
CementBondLogon75/8CASINGFROM12,000MDup8500(500abovetopofcement)

DanA.HughesCompany,L.P. CollierHogan203H

SAMPLINGPROGRAM

Staterequirements:
Geologist/MudLoggertocatchonesetofdrysamplesevery30(keepatrig)from10,000toTDon
VerticalPilotHole&alsotheHorizontalSection.
DanA.HughesCompany,L.P.requirements:
Geologist/MudLoggertocatchonesetofdrysamplesevery30(keepatrig)from10,000toTDon
VerticalPilotHole&alsotheHorizontalSection.

BITPROGRAM
Bit Size Depth
# (inch) Type Out(FT) WOB RPM Remarks
1 171/2 Rock 1950 5/25 120
2 121/4 Rock 2100 5/35 120
3 121/4 Button 4000 35/ 50
4 81/2 PDC 13,500 5/35 90/140 VerticalPilot
5 81/2 PDC 12,000 5/35 60/120 DirectionalBuild
6 61/2 PDC 16,900 5/35 60/120 Horizontal

SURVEYPROGRAM
Wewilltakedirectionalsurveyin171/2surfaceholeevery100to1950.Inthe121/4intermediate
hole,wewilltakeasurveyevery100to4000.Inthe81/2hole,wewilltakeasurveyevery100
downto13,500intheVerticalPilotHole.WewillthenrunaGyroSurveyfrom13,500backtosurface.
Aftersettingkickoffplug,wewilldirectionallydrillusingMWDsurveystoafinalHorizontalDepthof
16,900MD(11,903TVD).
SPECIALINSTRUCTIONS
1. NotifyFloridaDepartmentofEnvironmentalProtection(FDEP)inFortMeyers.ContactMr.Paul
Attwoodworkcell@2392294293andMr.PierreBrunoworkcell@2392294291within
24hourspriortospudandpriortorunningandcementingcasing.
2. Test133/8surfacecasingto1000#priortodrillingout.
3. Testthe95/8intermediatecasingto1000#beforedrillingoutfloatcollar.
4. Testthe95/8casingshoeto11.0#EquivalentMudWeight(EMW).
5. Testthe75/8casingto1500#beforedrillingoutfloatcollar.
6. Testthe75/8casingshoeto11.0#EquivalentMudWeight(EMW).
7. HaveallH2Sequipmentsetupby10,000alongwithMudlogger.
8. Allcementblendswillbemixedwithlocationwaterandpumptimeswillberunintherelab.All
resultsaretobesubmittedtotheDanA.HughesCompanyofficepriortocementing.
9. Safetymeetingswillbedoneeverymorningduringcrewchangeforeveryone.

DANA.HUGHESCOMPANY,L.P.
DRILLINGWELLPROCEDURE

COLLIERHOGAN203H
COLLIERCOUNTY,FLORIDA
SECTION20T47SR28E

OCTOBER31,2012

DRILLINGPROCEDURE

1. MIRUPrecisionRig#314.
2. Install20Diverterand8diverterlines.FunctionTest.
3. Spudwith171/2rockbit,171/2stabilizers,8Prodriftsurveytool,8drillcollars,6drill
collars,and5HWDP(BHAwillberecommendedbyDAHoffice).Drilldownto1950while
runningbothpumps@95spmforacombinedflowrateof600800gpm.Weightonbitfrom
5k25katarotaryspeedof60100rpm.
4. Take&recordProdriftdirectionalsurveysevery100to1950.Drillasrecommendedbymud
engineers.At1950,sweepholeandcirculateclean.POOHtobitandtripbackinto1950.
Circulate&conditionmudandPOOH.
5. RU6mancasingcreww/200tontools,stabbingboardandrentalbails(ifnecessary).RU
Laydownmachine.PUandrunFloatshoe,two(2)jointsof133/854.5#J55BT&Cofcasing,
FloatCollar,and133/854.5#J55BT&Ccasingdownto1950.Note:centralizew/bowsprings
6aboveFS,andoneperjointlatchedoverthenext6casingcollars.
6. Circulate&conditionmudfor11/2casingvolumes.Mix&pumpcementperrecommendation.
PumpLEADcementuntilcementisseenatsurfaceandimmediatelyswitchovertoTAILcement.
DisplaceTAILcementwithfreshwater.Note:Whencementgetstosurfacedivertcementto
opentoptank.
7. Afterdisplacement,TopOffannuluswith50ofTAILcement.Ifcementfallsorfailstocirculate,
notifyFDEPinFortMeyers.
8. Makeroughcut/finalcutonconductor&Casing.Weldon133/8SOWx133/83MC22
wellhead.Testwellheadto1000#.
9. NUBOPs.Testallrams,chokemanifold&relatedvalesto3000#(High)/250#(Low).Test
annularpreventerto2000#(High)/200#(Low).Testallfloorvalves,IBOP&mudlinesbackto
mudpumpsto5000#(High)/250#(Low).
10. RIHw/121/4milltoothbitandslickBHAtotopofcement.
11. Pressuretestcasingto1000#.Drilloutfloatcollar,cement,&floatshoe.
12. Drillnewholefrom19502100withbothpumpsforacombinedflowrateof500800gpm.
Varybitweightfrom5k35katarotaryspeedof80rpm.POOHforbuttonbittodrillBoulder
zonecap&Boulderzone.
13. RIHw/121/4buttonbitdrillthruBoulderzone(21003500)withlostreturns.TakeProdrift
surveysevery100.
14. POOH&RULaydownMachine.
15. RUcasingcreww/350tontools,stabbingboard,&rentalbails.RIHw/FS,2jts95/847#P110
GBButtressofcasing,FC,&95/847#P110GBButtresscasingdownto4000.
16. RUcementcrew,cementplugcontainer(top&bottomplugs),&iron.Circulate&condition
mudfor1casingvolume.Mix&pumpcementperrecommendation.Reciprocatecasing15and
displacecementwithmud.Bumpplug500#overdifferentialpressure.Bleedbacktocheck
floats.RDcementers.
17. NDflowlines&turnbuckles.RUstacklift.Breakbolts@wellhead&spacerspool.Pickup
BOPs&setcasingslips.Makeroughcutoncasing&removespacerspool&DSA.Makefinal
cutoncasing&NU135/83Mx115MC22casingspool.FinishNUBsection.SetBOPs&
RDstacklift.NUBOPs.
18. TestBsectionflange&packoffto2000#.Testallrams,chokemanifold&relatedvalesto
3500#(High)/250#(Low).Testannularpreventerto2000#(High)/250#(Low).Testallfloor
valves,IBOP&mudlinesbacktomudpumpsto5000#(High)/250#(Low).
19. RIHw/81/2PDCbit,stabilizers,ProDriftdirectionalsurveytool,6DCs,&5DPswithdrilling
jarsdowntotopofcement.Testcasingto1500#.DrilloutFC,cement,&FS.Drill10ofnew
hole&circulatebottomsupuntilclean.Testcasingshoeto11.0#EMW.
20. DrilldowntotopofUpperSunniland.TakeProDriftsurveysevery100.Makefrequentwiper
tripsevery30hrsorhowevertheholedictates&POOH.RUcorebit&barrel.RIHandcore
UpperSunniland(aspergeologistinstructions).POOH&RIHw/PDCbitanddrilldowntotopof
RubbleZone&POOH.
21. RUcorebit&barrel.RIHandcoretheRubblezone(aspergeologistrecommendation).POOH&
RIHw/PDCbitanddrilldowntotopofPumpkinBay&POOH.
22. RUcorebit&barrel.RIHandcorethePumpkinBayzone(aspergeologistrecommendation).
POOH&RIHw/PDCbit.
23. Drillremainingpartofholeto13,500(Approx100belowbaseofPumpkinBay).
24. Circulate&conditionmud.Makewipertripuptoshoe.RIHbacktobottomcirculatebottoms
up.Dropgyro&POOH.
25. RUWellLoggers&RIHandlogwellasperGeologistrecommendations.
26. RIHopenedendedwithdrillpipeandsetcementkickoffplugfrom10,80011,400.POOH.
27. RIHw/directionaltoolsandkickoffcementplug.Kickoffatapprox.11,187at8deg/100down
to12,000MD/11,836TVD(Depthwillchangeafterreviewingpreviousloggingruns).Make
wipertrip&circulate/conditionmud.RUlaydownmachine.POOH&laydowndrillpipe,BHA,
&bit.
28. RUcasingcreww/350tontools,stabbingboard,&rentalbails.RIHw/FS,2jts75/833.7#L80
LT&Cofcasing,FC,&75/833.7#L80LT&Ccasingdownto12,000.
29. RUcementcrew,cementplugcontainer(top&bottomplugs),&iron.Circulate&condition
mudfor11/2casingvolumes.Mix&pumpcementperrecommendation.Reciprocatecasing
510anddisplacecementwithmud.Bumpplug500#overdifferentialpressure.Bleedbackto
checkfloats.RDcementers.
30. NDflowlines.RUstacklift.BreakboltsonBOPs.PickupBOPs&setcasingslips.Makerough
cutoncasing&laydownpiece.Makefinalcutoncasing&NU115Mx71/1610MTCM
tubinghead.Testflange&packoffto4000#.NUDSA&SetBOPs.RDstacklift.NUBOPs.
31. Testallrams,chokemanifold&relatedvalesto3500#(High)/250#(Low).Testannularpreventer
to2000#(High)/250#(Low).Testallfloorvalves,IBOP&mudlinesbacktomudpumpsto
5000#(High)/250#(Low).
32. RIHw/61/2PDCbit,horizontaldirectionalBHA,&drillpipedowntotopofcement.Test
casingto1500#.DrilloutFC,cement,&FS.Drill10ofnewhole&circulatebottomsupuntil
clean.Testcasingshoeto11.0#EMW.Directlydrillhorizontallywithsteerableassemblyin
RubbleZoneasdirectedbyHughesGeologisttoaFinalTDof16,900MD/11,903TVD.
33. AfterreachingTD,circulate&conditionmud.POOHwithdrillpipe&laydowndirectionaltools.
RIH&setpackerat11,100.POOH&laydowndrillpipe.NDBOPs&RDMOdrillingrigandwait
oncompletionrig.













EXHIBIT 14

CASING AND CEMENTING PROGRAM


































1 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1

Dan A Hughes Company Lp Ebi z
Do Not Mai l -po Box 669
P.o. Dr aw er 669
Beevi l l e, Tex as 78104-0669

Collier-Hogan 20-3H
Collier County, Florida
United States of America







Cementing
Cost Estimate

Prepared for: J eff Ilseng

October 19, 2012
Version: 1











Submitted by:
Larry Mitschke
Halliburton
10200 Bellaire Blvd
Houston, Texas 77072-5299
+12819882489




2 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Halliburton appreciates the opportunity to present
this cost estimate and looks forward to being of service to you.
Foreword
Enclosed is our cost estimate for cementing the casing strings in the referenced well. The
information in this cost estimate includes well data, calculations, materials requirements, and cost
estimates. This cost estimate is based on information from our field personnel and previous cementing
services in the area.

The selection and use of non-Halliburton plugs and casing attachments often compromises
the holistic approach and may jeopardize the overall objective for effective zonal isolation.
Furthermore, Halliburton is not involved in the design, manufacture or use of plugs and casing
attachments supplied by other manufacturers and assumes no liability for their installation and
operation. For this reason we recommend Halliburton plugs and casing attachments be used when
Halliburton performs any zonal isolation operation.

Halliburton Energy Services recognizes the importance of meeting society's needs for health,
safety, and protection of the environment. It is our intention to proactively work with employees,
customers, the public, governments, and others to use natural resources in an environmentally sound
manner while protecting the health, safety, and environmental processes while supplying high quality
products and services to our customers.

We appreciate the opportunity to present this cost estimate for your consideration and we look
forward to being of service to you. Our Services for your well will be coordinated through the Service
Center listed below. If you require any additional information or additional designs, please feel free to
contact myself or our field representative listed below.



Prepared by:
Dennis Polzien
Technical Sales Analyst

Submitted by:
Larry Mitschke
Technical Advisor


SERVICE CENTER: LAFAYETTE, LA.
SERVICE COORDINATOR: SID SERVAT
PHONE NUMBER: 800/444-7830
BULK PLANT: CAMERON, LA.

WIRELINE & PERFORATING: NEW IBERIA, LA
PHONE NUMBER: 337/367-9261



3 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Information 13 3/8" Surface Casing
Well Name: Collier-Hogan 20-3H Well #: #1H



24" Drive Pipe 0 - 250 ft (MD)
Outer Diameter 24.000 in
Inner Diameter 23.000 in


17 1/2" Open Hole 250 - 1950 ft (MD)
Inner Diameter 17.500 in
J ob Excess 85 %


13 3/8" Surface Casing 0 - 1950 ft (MD)
Outer Diameter 13.375 in
Inner Diameter 12.615 in
Linear Weight 54.50 lbm/ft
Thread BTC
Casing Grade J -55

Mud Type Water Based Mud


4 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Calculations 13 3/8" Surface Casing
Spacer:
Total Spacer = 280.73 ft
3

= 50.00 bbl

Cement : (1450.00 ft fill)
250.00 ft * 1.9096 ft
3
/ft * 0 % = 477.39 ft
3

1200.00 ft * 0.6946 ft
3
/ft * 85 % = 1542.10 ft
3

Total Lead Cement = 2019.48 ft
3

= 359.68 bbl
Sacks of Cement = 1031 sks

Cement : (500.00 ft fill)
500.00 ft * 0.6946 ft
3
/ft * 85 % = 642.54 ft
3

Tail Cement = 642.54 ft
3

= 114.44 bbl

Shoe J oint Volume: (40.00 ft fill)
40.00 ft * 0.868 ft
3
/ft = 34.72 ft
3

= 6.18 bbl
Tail plus shoe joint = 677.26 ft
3

= 120.62 bbl
Total Tail = 574 sks

Total Pipe Capacity:
1950.00 ft * 0.868 ft
3
/ft = 1692.53 ft
3

= 301.45 bbl

Displacement Volume to Shoe J oint:
Capacity of Pipe - Shoe J oint = 301.45 bbl - 6.18 bbl
= 295.27 bbl


5 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Recommendation 13 3/8" Surface Casing
Fluid Instructions
Fluid 1: Water Spacer
Fresh Water Fluid Density: 8.33 lbm/gal
Fluid Volume: 50 bbl

Fluid 2: HFC-12
EXTENDACEM (TM) SYSTEM Fluid Weight 12 lbm/gal
10.688 Gal/sk Fresh Water (Mixing Fluid) Slurry Yield: 1.96 ft
3
/sk
Total Mixing Fluid: 10.69 Gal/sk
Top of Fluid: 0 ft
Calculated Fill: 1450 ft
Volume: 359.68 bbl
Calculated Sacks: 1030.87 sks
Proposed Sacks: 1035 sks
Estimated Slurry Properties:
24:00 127 psi


Fluid 3: Standard Cement
HALCEM (TM) SYSTEM Fluid Weight 15.60 lbm/gal
5.245 Gal/sk Fresh Water (Mixing Fluid) Slurry Yield: 1.18 ft
3
/sk
Total Mixing Fluid: 5.25 Gal/sk
Top of Fluid: 1450 ft
Calculated Fill: 500 ft
Volume: 120.62 bbl
Calculated Sacks: 573.95 sks
Proposed Sacks: 575 sks
Estimated Slurry Properties:
24:00 2200 psi


Fluid 4: Mud
Water Base Mud Displacement Fluid Density: 0 lbm/gal
Fluid Volume 295.27 bbl




6 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Procedure 13 3/8" Surface Casing

Detailed Pumping Schedule
Fluid # Fluid
Type
Fluid Name Surface
Density
lbm/gal
Estimated
Avg Rate
bbl/min
Downhole
Volume
1 Spacer Spacer 8.3 50 bbl
2 Cement Lead Cement 12.0 1035 sks
3 Cement Tail Cement 15.6 575 sks
4 Mud Displacement Fluid 295.27 bbl
This cement cost estimate is based on information presently available. Actual well conditions will dictate laboratory
testing for additive type and concentration.





7 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Information 9 5/8" Intermediate Casing
Well Name: Collier-Hogan 20-3H Well #: #1H



13 3/8" Surface Casing 0 - 1950 ft (MD)
Outer Diameter 13.375 in
Inner Diameter 12.615 in
Linear Weight 54.50 lbm/ft
Thread BTC
Casing Grade J -55


12 1/4" Open Hole 1950 - 4000 ft (MD)
Inner Diameter 12.250 in
J ob Excess 100 %


9 5/8" Intermediate Casing 0 - 4000 ft (MD)
Outer Diameter 9.625 in
Inner Diameter 8.681 in
Linear Weight 47 lbm/ft
Thread LTC
Casing Grade P-110

Mud Type Water Based Mud


8 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Calculations 9 5/8" Intermediate Casing
Spacer:
448.18 ft * 0.3132 ft
3
/ft * 100 % = 280.73 ft
3

Total Spacer = 280.73 ft
3

= 50.00 bbl

Cement : (500.00 ft fill)
500.00 ft * 0.3132 ft
3
/ft * 100 % = 313.19 ft
3

Primary Cement = 313.19 ft
3

= 55.78 bbl

Shoe J oint Volume: (80.00 ft fill)
80.00 ft * 0.411 ft
3
/ft = 32.88 ft
3

= 5.86 bbl
Tail plus shoe joint = 346.07 ft
3

= 61.64 bbl
Total Tail = 326 sks

Total Pipe Capacity:
4000.00 ft * 0.411 ft
3
/ft = 1644.09 ft
3

= 292.82 bbl

Displacement Volume to Shoe J oint:
Capacity of Pipe - Shoe J oint = 292.82 bbl - 5.86 bbl
= 286.97 bbl


9 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Recommendation 9 5/8" Intermediate Casing
Fluid Instructions
Fluid 1: Water Spacer
Fresh Water Fluid Density: 8.33 lbm/gal
Fluid Volume: 50 bbl

Fluid 2: Premium Cement
THERMACEM (TM) SYSTEM Fluid Weight 16.40 lbm/gal
4.351 Gal/sk Fresh Water (Mixing Fluid) Slurry Yield: 1.06 ft
3
/sk
Total Mixing Fluid: 4.35 Gal/sk
Top of Fluid: 3500 ft
Calculated Fill: 500 ft
Volume: 61.64 bbl
Calculated Sacks: 325.87 sks
Proposed Sacks: 330 sks
Estimated Slurry Properties:
12:00 1590 psi
24:00 2503 psi


Fluid 3: Mud
Water Base Mud Displacement Fluid Density: 9 lbm/gal
Fluid Volume 286.97 bbl




10 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Procedure 9 5/8" Intermediate Casing

Detailed Pumping Schedule
Fluid # Fluid
Type
Fluid Name Surface
Density
lbm/gal
Estimated
Avg Rate
bbl/min
Downhole
Volume
1 Spacer Spacer 8.3 50 bbl
2 Cement Primary Cement 16.4 330 sks
3 Mud Displacement Fluid 9.0 286.97 bbl
This cement cost estimate is based on information presently available. Actual well conditions will dictate laboratory
testing for additive type and concentration.








11 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Information 7 5/8" Intermediate Casing
Well Name: Collier-Hogan 20-3H Well #: #1H



9 5/8" Intermediate Casing 0 - 4000 ft (MD)
Outer Diameter 9.625 in
Inner Diameter 8.681 in
Linear Weight 47 lbm/ft
Thread LTC
Casing Grade P-110


8 1/2" Open Hole 4000 - 12000 ft (MD)
4000 - 11836 ft (TVD)
Inner Diameter 8.500 in
J ob Excess 50 %


7 5/8" Intermediate Casing 0 - 12000 ft (MD)
0 - 11836 ft (TVD)
Outer Diameter 7.625 in
Inner Diameter 6.765 in
Linear Weight 33.70 lbm/ft
Thread LTC
Casing Grade L-80

Mud Type Water Based Mud


12 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Calculations 7 5/8" Intermediate Casing
Spacer:
1945.59 ft * 0.077 ft
3
/ft * 50 % = 224.58 ft
3

Total Spacer = 224.58 ft
3

= 40.00 bbl

Cement : (1500.00 ft fill)
1500.00 ft * 0.077 ft
3
/ft * 50 % = 173.15 ft
3

Total Lead Cement = 173.15 ft
3

= 30.84 bbl
Sacks of Cement = 139 sks

Cement : (1500.00 ft fill)
1500.00 ft * 0.077 ft
3
/ft * 50 % = 173.15 ft
3

Tail Cement = 173.15 ft
3

= 30.84 bbl

Shoe J oint Volume: (80.00 ft fill)
80.00 ft * 0.2496 ft
3
/ft = 19.97 ft
3

= 3.56 bbl
Tail plus shoe joint = 193.12 ft
3

= 34.40 bbl
Total Tail = 182 sks

Total Pipe Capacity:
12000.00 ft * 0.2496 ft
3
/ft = 2995.33 ft
3

= 533.49 bbl

Displacement Volume to Shoe J oint:
Capacity of Pipe - Shoe J oint = 533.49 bbl - 3.56 bbl
= 529.93 bbl


13 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Recommendation 7 5/8" Intermediate Casing
Fluid Instructions
Fluid 1: Rheologically Enhanced Spacer
TUNED SPACER III Fluid Density: 13 lbm/gal
233.2 lbm/bbl Barite (Heavy Weight Additive) Fluid Volume: 40 bbl




Fluid 2: 50/50 Poz Premium, 2% Bentonite
ECONOCEM (TM) SYSTEM Fluid Weight 14.20 lbm/gal
0.3 % HR-5 (Retarder) Slurry Yield: 1.24 ft
3
/sk
5.618 Gal/sk Fresh Water (Mixing Fluid) Total Mixing Fluid: 5.62 Gal/sk
Top of Fluid: 9000 ft
Calculated Fill: 1500 ft
Volume: 30.84 bbl
Calculated Sacks: 139.19 sks
Proposed Sacks: 140 sks
Estimated Slurry Properties:
24:00 1240 psi


Fluid 3: Premium Cement
BONDCEM (TM) SYSTEM Fluid Weight 16.40 lbm/gal
0.5 % Halad(R)-344 (Low Fluid Loss Control) Slurry Yield: 1.06 ft
3
/sk
0.15 % HR-5 (Retarder) Total Mixing Fluid: 4.31 Gal/sk
4.308 Gal/sk Fresh Water (Mixing Fluid) Top of Fluid: 10500 ft
Calculated Fill: 1500 ft
Volume: 34.40 bbl
Calculated Sacks: 181.50 sks
Proposed Sacks: 185 sks
Estimated Slurry Properties:
24:00 3118 psi
Free Water: 0.0 %
Actual Fluid Loss: 80 cc/30min

Fluid 4: Mud
Water Base Mud Displacement Fluid Density: 0 lbm/gal
Fluid Volume 529.93 bbl




14 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Job Procedure 7 5/8" Intermediate Casing

Detailed Pumping Schedule
Fluid # Fluid
Type
Fluid Name Surface
Density
lbm/gal
Estimated
Avg Rate
bbl/min
Downhole
Volume
1 Spacer Spacer 13.0 40 bbl
2 Cement Lead Cement 14.2 140 sks
3 Cement Tail Cement 16.4 185 sks
4 Mud Displacement Fluid 529.93 bbl
This cement cost estimate is based on information presently available. Actual well conditions will dictate laboratory
testing for additive type and concentration.








15 / 15 Proposal 331430H_Collier Land & Cattle corp 21_1H_ v.1
Conditions

NOTE

The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30
days from the date of this proposal. In order to meet your needs under this proposal with a high quality
of service and responsive timing, Halliburton will be allocating limited resources and committing
valuable equipment and materials to your area of operations. Accordingly, the discounts reflected in this
proposal are available only for materials and services awarded on a first-call basis. Alternate pricing may
apply in the event that Halliburton is awarded work on any basis other than as a first-call provider.

The unit prices stated in the proposal are based on our current published prices. The projected equipment,
personnel, and material needs are only estimates based on information about the work presently available
to us. At the time the work is actually performed, conditions then existing may require an increase or
decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in
effect at the time the work is performed and the amount of equipment, personnel, and/or material actually
utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual
invoice.

It is understood and agreed between the parties that with the exception of the subject discounts, all
services performed and equipment and materials sold are provided subject to Halliburtons General Terms
and Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and
WARRANTY provisions), and pursuant to the applicable Halliburton Work Order Contract (whether or
not executed by you), unless a Master Service and/or Sales Contract applicable to the services, equipment,
or materials supplied exists between your company and Halliburton, in which case the negotiated Master
Contract shall govern the relationship between the parties. A copy of the latest version of our General
Terms and Conditions is available from your Halliburton representative or at:
http://www.halliburton.com/terms for your convenient review, and we would appreciate receiving any
questions you may have about them. Should your company be interested in negotiating a Master Contract
with Halliburton, our Law Department would be pleased to work with you to finalize a mutually
agreeable contract. In this connection, it is also understood and agreed that Customer will continue to
execute Halliburton usual field work orders and/or tickets customarily required by Halliburton in
connection with the furnishing of said services, equipment, and materials.
Any terms and conditions contained in purchase orders or other documents issued by the customer shall
be of no effect except to confirm the type and quantity of services, equipment, and materials to be
supplied to the customer.
If customer does not have an approved open account with Halliburton or a mutually executed written
contract with Halliburton, which dictates payment terms different than those set forth in this clause, all
sums due are payable in cash at the time of performance of services or delivery of equipment, products, or
materials. If customer has an approved open account, invoices are payable on the twentieth day after date
of invoice.

Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest
lawful contract rate applicable, but never to exceed 18% per annum. In the event Halliburton employs an
attorney for collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account,
plus all collection and court costs.












EXHIBIT 15

WELLBORE SCHEMATIC



























PROPOSED
WELLBORE SCHEMATIC
WELL NAME: COLLIER-HOGAN 20 -3H
LOCATION: Section 20 T47S-R28E
COLLIER COUNTY, FLORIDA
BY: J EFF ILSENG DATE: 10/18/12


T
D

@


1
6
,
9
0
0


M
D


6-1/2 open hole

13-3/8 54.5# J-55 BT&C @ 1950

Kick Off Point 11,187
Landing Point 12,312 MD/ 11,903TVD @ 90 Degr

Lower Sunniland(Rubble) landing depth @ 11,903 TVD
12-1/4 Hole size
17-1/2 Hole size
DAN A. HUGHES COMPANY, L.P.
D
r
i
l
l

v
e
r
t
i
c
a
l


p
i
l
o
t

h
o
l
e

t
o

1
3
,
5
0
0


Top of Cement @ 3500
9-5/8 47# P-110 GB Buttress @ 4000
20 Conductor --Driven down to 250
BOULDER ZONE from 2100-3500
8-1/2 open hole
Top of Cement @ 9000
FORMATION TOPS:
GROUND LEVEL--20.6
RKB--27 above GL
Lake Trafford (-11,475)
Sunniland (-11,654)
Rubble zone (-11,839)
Target in Rubble (-11,880)
Punta Gorda (-11,892)
Top Pumpkin Bay (-13,141)
Lower Pumpkin Bay (-13,441)
SURFACE LOCATION:
X =479,083.05 Y =741,361.82
Latitude: 262220.102N
Longitude: 0813227.096W
BOTTOMHOLE LOCATION:
X =484,408.74 Y =740,617.99
Latitude: 262212.953N
Longitude: 0813128.507W
PENETRATION POINT(RUBBLE):
X =479,493.04 Y =741,304.56
Latitude: 262219.552
Longitude: 0813222.586W












EXHIBIT 16

WELL CONTROL PLAN


























DANA.HUGHESCOMPANY,L.P.
WELLCONTROLPLAN

COLLIERHOGAN203H
COLLIERCOUNTY,FLORIDA
SECTION20T47SR28E

NOVEMBER30,2012

DanA.HughesCompany,L.P. CollierHogan203H

DanA.HughesCompany,L.P. CollierHogan203H

BOPPROGRAM
HOLE SIZE/ BottomtoTop Low/HighTestPressures
SIZE PRESURE Arrangement Rams/Annular

171/2 213/42M A N/A

121/4 213/42M A N/A

81/2 115M P/S/B/A 2503500/2502000

61/2 115M P/S/B/A 2503500/2502000

P=PipeRamB=BlindRamA=AnnularS=DrillingSpool

Test133/8surfacecasingto1000#.Test95/8&75/8casingsto1500#
NOTE:WellControlwilluseIADCacceptedmethods.ThisareaisknownmoreforLostCirculationthan
forkicks.PicturesofBOPsinAttachments.

FloridaDept.ofEnvironmentalProtectionrulesarethattheBOPswillbetestedeveryweek
orcalledandaskforextension.













EXHIBIT 17

DIRECTIONAL DRILLING PROGRAM



























Dan A. Hughes Co.
Collier-Hogan, Well No. 20-30H
Collier County, Florida
Quote No.: 090512308
10500
11000
11500
12000
12500
13000
13500
14000
T
r
u
e

V
e
r
t
i
c
a
l

D
e
p
t
h

(
1
0
0
0

u
s
f
t
/
i
n
)
-500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500
Vertical Section at 97.95 (1000 usft/in)
Pilot Hole- TD at 13500.0
KOP, Build 8.00/100'
Hold 90.00, 97.95 Azimuth
PBHL - Lateral
DESIGN TARGET DETAILS
Name TVD +N/-S +E/-W Northing Easting Latitude Longitude Shape
PBHL - Lateral #20-30H 11903.0 -743.8 5325.7 740616.51 484407.78 26 22' 12.938 N 81 31' 28.518 W Point
SITE DETAILS: Collier-Hogan #20-30H
SiteCentreNorthing: 741360.34
Easting: 479082.09
Positional Uncertainity: 0.0
Convergence: -0.24
Local North: Grid
PROJ ECT DETAILS: Collier County, Florida
Geodetic System: US StatePlane1983
Datum: North American Datum1983
Ellipsoid: GRS 1980
Zone: FloridaEastern Zone
SystemDatum: Mean SeaLevel
Azimuths to Grid North
TrueNorth: 0.24
Magnetic North: -5.21
Magnetic Field
Strength: 44953.5snT
Dip Angle: 55.92
Date: 10/22/2012
Model: WMM_2010
G
M T
Drawn By: ALR
Date Created: 10/07/12
Date Revised: 10/08/12
File: Dan A. Hughes - Collier-Hogan #20-30H Lateral 1r1.wpc
SECTION DETAILS
Sec MD Inc Azi TVD +N/-S +E/-W Dleg TFace VSect Target Annotation
1 11187.0 0.00 0.00 11187.0 0.0 0.0 0.00 0.00 0.0 KOP, Build 8.00/100'
2 12312.0 90.00 97.95 11903.2 -99.1 709.3 8.00 97.95 716.2 Hold 90.00, 97.95 Azimuth
3 16973.2 90.00 97.95 11903.0 -743.8 5325.7 0.00 0.00 5377.4 PBHL - Lateral #20-30H PBHL - Lateral
-4000
-3000
-2000
-1000
0
1000
2000
3000
S
o
u
t
h
(
-
)
/
N
o
r
t
h
(
+
)

(
2
0
0
0

u
s
f
t
/
i
n
)
-1000 0 1000 2000 3000 4000 5000 6000 7000
West(-)/East(+) (2000 usft/in)
KOP, Build 8.00/100'
Hold 90.00, 97.95 Azimuth
PBHL - Lateral
97.95 Azimuth
Lease/HardLines Pending
Aim Directional Services, LLC
Planning Report
Well 20-30H Local Co-ordinate Reference: Database: EDM 5000.1 Single User Db
WELL @ 23.0usft (Original Well Elev) TVD Reference:
Dan A. Hughes Company:
WELL @ 23.0usft (Original Well Elev) MD Reference:
Collier County, Florida Project:
Grid North Reference:
Collier-Hogan #20-30H Site:
Minimum Curvature Survey Calculation Method: 20-30H Well:
Lateral 1r1 Wellbore:
Lateral 1r1 Design:
Map System:
Geo Datum:
Project
Map Zone:
System Datum: US State Plane 1983
North American Datum 1983
Collier County, Florida
Florida Eastern Zone
Mean Sea Level
Site Position:
From:
Site
Latitude:
Longitude:
Position Uncertainty:
Northing:
Easting:
Grid Convergence:
Collier-Hogan #20-30H
Lat/Long
-0.24 Slot Radius: 13-3/16 "
741,360.33 usft
479,082.09 usft
0.0 usft
26 22' 20.087 N
81 32' 27.107 W
Well
Well Position
Longitude:
Latitude:
Easting:
Northing:
+E/-W
+N/-S
Position Uncertainty Ground Level:
20-30H
741,360.33 usft
479,082.09 usft
23.0 usft Wellhead Elevation: 23.0 usft 0.0 usft
26 22' 20.087 N
81 32' 27.107 W
0.0 usft
0.0 usft
Wellbore
Declination
()
Field Strength
(nT)
Sample Date Dip Angle
()
Lateral 1r1
Model Name Magnetics
WMM_2010 10/22/2012 -5.45 55.92 44,953
Phase: Version:
Audit Notes:
Design Lateral 1r1
PROTOTYPE
Vertical Section: Depth From (TVD)
(usft)
+N/-S
(usft)
Direction
()
+E/-W
(usft)
Tie On Depth: 11,187.0
97.95 0.0 0.0 0.0
Inclination
()
Azimuth
()
+E/-W
(usft)
TFO
()
+N/-S
(usft)
Measured
Depth
(usft)
Vertical
Depth
(usft)
Dogleg
Rate
(/100usft)
Build
Rate
(/100usft)
Turn
Rate
(/100usft)
Plan Sections
Target
0.00 0.00 0.00 0.00 0.0 0.0 11,187.0 0.00 0.00 11,187.0
97.95 8.71 8.00 8.00 709.3 -99.1 11,903.2 97.95 90.00 12,312.0
0.00 0.00 0.00 0.00 5,325.7 -743.8 11,903.0 97.95 90.00 16,973.2 PBHL - Lateral #20-
10/22/2012 11:58:13AM COMPASS 5000.1 Build 65 Page 1
Aim Directional Services, LLC
Planning Report
Well 20-30H Local Co-ordinate Reference: Database: EDM 5000.1 Single User Db
WELL @ 23.0usft (Original Well Elev) TVD Reference:
Dan A. Hughes Company:
WELL @ 23.0usft (Original Well Elev) MD Reference:
Collier County, Florida Project:
Grid North Reference:
Collier-Hogan #20-30H Site:
Minimum Curvature Survey Calculation Method: 20-30H Well:
Lateral 1r1 Wellbore:
Lateral 1r1 Design:
Measured
Depth
(usft)
Inclination
()
Azimuth
()
+E/-W
(usft)
Vertical
Section
(usft)
Dogleg
Rate
(/100usft)
+N/-S
(usft)
Build
Rate
(/100usft)
Turn
Rate
(/100usft)
Planned Survey
Vertical
Depth
(usft)
11,187.0 0.00 0.00 11,187.0 0.0 0.00 0.0 0.0 0.00 0.00
KOP, Build 8.00/100'
11,200.0 1.04 97.95 11,200.0 0.1 8.00 0.0 0.1 8.00 0.00
11,250.0 5.04 97.95 11,249.9 2.8 8.00 -0.4 2.7 8.00 0.00
11,300.0 9.04 97.95 11,299.5 8.9 8.00 -1.2 8.8 8.00 0.00
11,350.0 13.04 97.95 11,348.6 18.5 8.00 -2.6 18.3 8.00 0.00
11,400.0 17.04 97.95 11,396.9 31.4 8.00 -4.3 31.1 8.00 0.00
11,450.0 21.04 97.95 11,444.1 47.7 8.00 -6.6 47.3 8.00 0.00
11,500.0 25.04 97.95 11,490.1 67.3 8.00 -9.3 66.7 8.00 0.00
11,550.0 29.04 97.95 11,534.7 90.0 8.00 -12.5 89.2 8.00 0.00
11,600.0 33.04 97.95 11,577.5 115.8 8.00 -16.0 114.7 8.00 0.00
11,650.0 37.04 97.95 11,618.4 144.5 8.00 -20.0 143.1 8.00 0.00
11,700.0 41.04 97.95 11,657.2 176.0 8.00 -24.3 174.3 8.00 0.00
11,750.0 45.04 97.95 11,693.8 210.1 8.00 -29.1 208.1 8.00 0.00
11,800.0 49.04 97.95 11,727.8 246.7 8.00 -34.1 244.3 8.00 0.00
11,850.0 53.04 97.95 11,759.3 285.6 8.00 -39.5 282.8 8.00 0.00
11,900.0 57.04 97.95 11,787.9 326.5 8.00 -45.2 323.4 8.00 0.00
11,950.0 61.04 97.95 11,813.6 369.4 8.00 -51.1 365.9 8.00 0.00
12,000.0 65.04 97.95 11,836.3 414.0 8.00 -57.3 410.0 8.00 0.00
12,050.0 69.04 97.95 11,855.8 460.0 8.00 -63.6 455.6 8.00 0.00
12,100.0 73.04 97.95 11,872.0 507.3 8.00 -70.2 502.4 8.00 0.00
12,150.0 77.04 97.95 11,885.0 555.6 8.00 -76.9 550.2 8.00 0.00
12,200.0 81.04 97.95 11,894.5 604.7 8.00 -83.6 598.8 8.00 0.00
12,250.0 85.04 97.95 11,900.5 654.3 8.00 -90.5 648.0 8.00 0.00
12,300.0 89.04 97.95 11,903.1 704.2 8.00 -97.4 697.4 8.00 0.00
12,312.0 90.00 97.95 11,903.2 716.2 8.00 -99.1 709.3 8.00 0.00
Hold 90.00, 97.95 Azimuth
12,400.0 90.00 97.95 11,903.2 804.2 0.00 -111.2 796.5 0.00 0.00
12,500.0 90.00 97.95 11,903.2 904.2 0.00 -125.1 895.5 0.00 0.00
12,600.0 90.00 97.95 11,903.2 1,004.2 0.00 -138.9 994.5 0.00 0.00
12,700.0 90.00 97.95 11,903.2 1,104.2 0.00 -152.7 1,093.6 0.00 0.00
12,800.0 90.00 97.95 11,903.2 1,204.2 0.00 -166.6 1,192.6 0.00 0.00
12,900.0 90.00 97.95 11,903.2 1,304.2 0.00 -180.4 1,291.7 0.00 0.00
13,000.0 90.00 97.95 11,903.2 1,404.2 0.00 -194.2 1,390.7 0.00 0.00
13,100.0 90.00 97.95 11,903.2 1,504.2 0.00 -208.1 1,489.7 0.00 0.00
13,200.0 90.00 97.95 11,903.2 1,604.2 0.00 -221.9 1,588.8 0.00 0.00
13,300.0 90.00 97.95 11,903.2 1,704.2 0.00 -235.7 1,687.8 0.00 0.00
13,400.0 90.00 97.95 11,903.2 1,804.2 0.00 -249.6 1,786.9 0.00 0.00
13,500.0 90.00 97.95 11,903.1 1,904.2 0.00 -263.4 1,885.9 0.00 0.00
13,600.0 90.00 97.95 11,903.1 2,004.2 0.00 -277.2 1,984.9 0.00 0.00
13,700.0 90.00 97.95 11,903.1 2,104.2 0.00 -291.1 2,084.0 0.00 0.00
13,800.0 90.00 97.95 11,903.1 2,204.2 0.00 -304.9 2,183.0 0.00 0.00
13,900.0 90.00 97.95 11,903.1 2,304.2 0.00 -318.7 2,282.0 0.00 0.00
14,000.0 90.00 97.95 11,903.1 2,404.2 0.00 -332.6 2,381.1 0.00 0.00
14,100.0 90.00 97.95 11,903.1 2,504.2 0.00 -346.4 2,480.1 0.00 0.00
14,200.0 90.00 97.95 11,903.1 2,604.2 0.00 -360.2 2,579.2 0.00 0.00
14,300.0 90.00 97.95 11,903.1 2,704.2 0.00 -374.1 2,678.2 0.00 0.00
14,400.0 90.00 97.95 11,903.1 2,804.2 0.00 -387.9 2,777.2 0.00 0.00
14,500.0 90.00 97.95 11,903.1 2,904.2 0.00 -401.7 2,876.3 0.00 0.00
14,600.0 90.00 97.95 11,903.1 3,004.2 0.00 -415.6 2,975.3 0.00 0.00
14,700.0 90.00 97.95 11,903.1 3,104.2 0.00 -429.4 3,074.4 0.00 0.00
14,800.0 90.00 97.95 11,903.1 3,204.2 0.00 -443.2 3,173.4 0.00 0.00
14,900.0 90.00 97.95 11,903.1 3,304.2 0.00 -457.1 3,272.4 0.00 0.00
15,000.0 90.00 97.95 11,903.1 3,404.2 0.00 -470.9 3,371.5 0.00 0.00
10/22/2012 11:58:13AM COMPASS 5000.1 Build 65 Page 2
Aim Directional Services, LLC
Planning Report
Well 20-30H Local Co-ordinate Reference: Database: EDM 5000.1 Single User Db
WELL @ 23.0usft (Original Well Elev) TVD Reference:
Dan A. Hughes Company:
WELL @ 23.0usft (Original Well Elev) MD Reference:
Collier County, Florida Project:
Grid North Reference:
Collier-Hogan #20-30H Site:
Minimum Curvature Survey Calculation Method: 20-30H Well:
Lateral 1r1 Wellbore:
Lateral 1r1 Design:
Measured
Depth
(usft)
Inclination
()
Azimuth
()
+E/-W
(usft)
Vertical
Section
(usft)
Dogleg
Rate
(/100usft)
+N/-S
(usft)
Build
Rate
(/100usft)
Turn
Rate
(/100usft)
Planned Survey
Vertical
Depth
(usft)
15,100.0 90.00 97.95 11,903.1 3,504.2 0.00 -484.7 3,470.5 0.00 0.00
15,200.0 90.00 97.95 11,903.1 3,604.2 0.00 -498.6 3,569.5 0.00 0.00
15,300.0 90.00 97.95 11,903.1 3,704.2 0.00 -512.4 3,668.6 0.00 0.00
15,400.0 90.00 97.95 11,903.1 3,804.2 0.00 -526.2 3,767.6 0.00 0.00
15,500.0 90.00 97.95 11,903.1 3,904.2 0.00 -540.1 3,866.7 0.00 0.00
15,600.0 90.00 97.95 11,903.1 4,004.2 0.00 -553.9 3,965.7 0.00 0.00
15,700.0 90.00 97.95 11,903.1 4,104.2 0.00 -567.7 4,064.7 0.00 0.00
15,800.0 90.00 97.95 11,903.0 4,204.2 0.00 -581.5 4,163.8 0.00 0.00
15,900.0 90.00 97.95 11,903.0 4,304.2 0.00 -595.4 4,262.8 0.00 0.00
16,000.0 90.00 97.95 11,903.0 4,404.2 0.00 -609.2 4,361.9 0.00 0.00
16,100.0 90.00 97.95 11,903.0 4,504.2 0.00 -623.0 4,460.9 0.00 0.00
16,200.0 90.00 97.95 11,903.0 4,604.2 0.00 -636.9 4,559.9 0.00 0.00
16,300.0 90.00 97.95 11,903.0 4,704.2 0.00 -650.7 4,659.0 0.00 0.00
16,400.0 90.00 97.95 11,903.0 4,804.2 0.00 -664.5 4,758.0 0.00 0.00
16,500.0 90.00 97.95 11,903.0 4,904.2 0.00 -678.4 4,857.1 0.00 0.00
16,600.0 90.00 97.95 11,903.0 5,004.2 0.00 -692.2 4,956.1 0.00 0.00
16,700.0 90.00 97.95 11,903.0 5,104.2 0.00 -706.0 5,055.1 0.00 0.00
16,800.0 90.00 97.95 11,903.0 5,204.2 0.00 -719.9 5,154.2 0.00 0.00
16,900.0 90.00 97.95 11,903.0 5,304.2 0.00 -733.7 5,253.2 0.00 0.00
16,973.2 90.00 97.95 11,903.0 5,377.4 0.00 -743.8 5,325.7 0.00 0.00
PBHL - Lateral
Target Name
- hit/miss target
- Shape
TVD
(usft)
Northing
(usft)
Easting
(usft)
+N/-S
(usft)
+E/-W
(usft)
Design Targets
Longitude Latitude
Dip Angle
()
Dip Dir.
()
PBHL - Lateral #20-30 11,903.0 740,616.50 484,407.78 -743.8 5,325.7 0.00 0.00 26 22' 12.938 N 81 31' 28.518 W
- plan hits target center
- Point
Measured
Depth
(usft)
Vertical
Depth
(usft)
+E/-W
(usft)
+N/-S
(usft)
Local Coordinates
Comment
Plan Annotations
11,187.0 11,187.0 0.0 0.0 KOP, Build 8.00/100'
12,312.0 11,903.2 -99.1 709.3 Hold 90.00, 97.95 Azimuth
16,973.2 11,903.0 -743.8 5,325.7 PBHL - Lateral
10/22/2012 11:58:13AM COMPASS 5000.1 Build 65 Page 3












EXHIBIT 18

DRILLING FLUIDS PROGRAM






























Drilling Fluids Proposal


DAN A HUGHES COMPANY
Collier-Hogan 20-3H
Section 20
T47S-R28E
Collier County, Florida


Attention: Mr. Jeff Ilseng









5350 S. Staples; Suite 215, Corpus Christi, Texas 78411 / Tel: (361) 985-2600 / Fax: (361) 985-2604






October 23, 2012

Mr. Jeff Ilseng
Dan A. Hughes Company
P.O. Drawer 669
Beeville, Texas 78104




Dear Mr. Ilseng:

Thank you for giving Dynamic Drilling Fluids this opportunity to serve you by submitting the enclosed
drilling fluid program for your Collier-Hogan 20-3H well to be drilled in Collier County, Florida. I sincerely
hope this information will aid you in planning your drilling operation.

To prepare this program, we have used well data from several wells located in the vicinity of your
proposed location. This information is included in the Reference Wells section of this program for your
use and evaluation.

We recommend a Lightly Dispersed /Polymer mud system, supplemented with shale stabilizer down to
intermediate casing point. Fresh water/Zan Plex/HEC polymer. The estimated discounted cost of
$295,000 is based on a minimum number of 80-85 days assuming no unusual hole problems are
encountered.

We at Dynamic Drilling Fluids would be very pleased to be awarded the privilege of supplying the drilling
fluid for your well and will strive for your complete satisfaction in both engineering service and product
performance. Should you have any questions concerning our recommendations or if we may be of
further service, please do not hesitate to call upon us at any time.



Sincerely,


Jason Ferguson












Dan A. Hughes Company
Collier-Hogan 20-3H

















































Casing
Size
(in)
Hole
Size
(in)
Casing
Program
TVD/MD

(ft)
Mud
System
Mud
Weight
(ppg)
Sum
Days







13 3/8
17 1/2"






0






1950
Massive sand, Lost Circulation, Water Flow
Mix High Vis GEL Sweep
Be prepared to control drill to allow solids
control equipment to handle sand pump
High viscosity sweeps while drilling
Mud up viscosity 50-60 sec/qt

Gel/Polymer/Lime
8.4






8.8
0






















9-5/8
12 1/4"























4,000
BOULDER ZONE 2,100-3,500

Massive Sand, Salt Water influx and
Lost Circulation in Boulder Zone

Expect complete lost returns in the upper
boulder zone. Plan on drilling blind with no
returns pumping massive GEL/Lime sweeps




At TD mix and pump (2) massive, thick GEL
sweeps. Prior to POOH to run casing mix and
spot 80bbl GEL slurry on bottom
Do not rotate pipe out when POOH
8.6














9.1

































7-5/8
8 1/2"
























11,836TVD
12,000MD
Adjust MW as hole conditions dictate

Reduce Rheological properties to 34-38 sec/qt


Monitor Chlorides and calcium closely for Salt
Water flows through this section. Increase MW
if necessary to control Salt Water flow

Salt Gel will be used if Chlorides/calcium are
too high for GEL, Treat Calcium with Soda
Ash to maintain 80-120 ppm

KOP 11,187

MIL-Lube may be added 1-3% by volume to
reduce torque and drag. Sweep hole with
15-20 ppb graphite sweeps to reduce torque
8.8
















9.1



























6 1/2

















11,903TVD
16,900MD
Lateral section
Lateral section will be drilled with HEC/ Zan
Plex Polymer system

Utilizing High Vis polymer/graphite sweeps
Weighted Calcium Carbonate sweeps

Lower Sunniland is expected to be normal
pressure. Build slugs brine water or Calcium
Carbonate



















85
Project Summary


Dan A. Hughes
Collier-Hogan 20-3H















T







This interval should be drilled with a Flocculated GEL mud system supplemented
with high viscosity sweeps and MF 55 (Polyacrylate/Polyacrylate Co-Polymer).
Control Drill this section due to Massive Sand sections to allow solids control
equipment to process fluid.
Some offsets experienced Lost Circulation in this section
Run all solids control equipment to maintain MW 8.8 ppg
Set 13-3/8 inch Surface Casing at approximately 1,950 feet.













0 1,950
17 1/2 Hole Set 13-3/8 Surface Casing
Drilling Fluid System
Spud Mud
Key Products
Mil-Gel, Mil-Bar, Polymer, Lime, SAPP, Caustic Soda, Fiber M
Solids Control
Linear Motion Shakers, Desilter/Desander, Dilution.
Potential Problems
Massive Sand section, Lost Circulation, water flows
Interval Drilling Fluid Properties
Depth Mud Mud Plastic Yield API HTHP
Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss
(ft) (ppg) (sec/qt) (cp) (lb/100ft) (ml/30min) (ml/30min)
0-1,950 8.4-8.8 50 to 60 4 to 8 12 to 18 N/C N/A





Dan A. Hughes
Collier-Hogan 20-3H




























After drilling cement, casing shoe, and 10 feet of formation, test casing seat to
company specifications.
After test holds, continue drilling with a native mud supplemented with polymer
sweeps to improve hole cleaning .
Lost Returns are expected in the Boulder Zone 2,100-3,500
The section will be drilled blind with no returns. While drilling blind build and pump
flocculated Gel/MICA M sweeps to keep cutting off bottom and reduce potential pack
off. Continue pumping GEL sweeps thru this section. Washing and reaming
connections is highly recommended.
Once the Boulder Section is drilled Circulate and pump 2-3 thick, flocculated
GEL/Lime sweeps at TD.
Once hole is clean mix and spot (80bbl) Gel Slurry on bottom before pulling out to run
9-5/8 casing.







Interval Drilling Fluid Properties
Depth Mud Mud Plastic Yield API HTHP
Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss
(ft) (ppg) (sec/qt) (cp) (lb/100ft) (ml/30min) (ml/30min)
1,950-4,000 9.0- 9.2 40 to 44 10 to 16 10 to 12 25-20 N/A
1,950 4,000
12-1/4 Hole Set 9 5/8 Casing
Drilling Fluid System Gel/Polymer System
Key Products
Gel, Barite, Caustic Soda, Mica M, Fiber M, MF 55, Lime
Solids Control
Linear Motion Shaker, Dilution.
Potential Problems
Massive Sand Sections, Salt Water Influx, LOST Circulation in boulder
Zone, torque and drag



Dan A. Hughes
Collier-Hogan 20-3H



























Set 9-5/8 Casing at 4,000
Drill out with Lightly dispersed mud, pump high VIS Gel/Polymer sweeps as needed
Salt Water Flows are expected in this section, monitor Chlorides and Calcium closely.
Adjust Mud Weight accordingly to control Salt Water flow.
Maintain pH 9.5, added Soda Ash to control and maintain Calcium
Recommend added 3-4% by volume if Mil-Lube to active system.
Added in sweep form +/- 11,187 Kick off point
Run 15-20 ppb Graphite sweeps to help reduce torque
Maintain pH 10-10.5 with Caustic Soda, add small amounts of Biocide as needed


Formation Tops
Ground Level 23

Lake Trafford (-11,475)
Sunniland (-11,654)
Rubble Zone (-11,839)
Target (-11,880)
Punta Gorda (-11,892)


4,000 - 11,836TVD, 12,000MD
8 1/2 Hole
Drilling Fluid System Lightly dispersed polymer system
Key Products
Gel, Lignite, MF 55, Caustic, Soda Ash, MICA M, Mil-Lube, Salt Gel,
Drispac
Solids Control
Linear Motion Shaker, Dilution.
Potential Problems
Massive Sand, Hole Cleaning, Lost Circulation, Salt Water Flow, torque
and drag
Interval Drilling Fluid Properties
Depth Mud Mud Plastic Yield API HTHP
Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss
(ft) (ppg) (sec/qt) (cp) (lb/100ft) (ml/30min) (ml/30min)
4,000- 6,000 8.6-8.9 36-40 10 to 16 10 to 14 25-20
6,000- 11,000 8.9-9.1 36-40 10 to 16 10 to 14 25-20
11,000-11,836TVD
12,000 MD
9.1 40-48 16 to 22 10 to 14 20-10


Dan A. Hughes
Collier-Hogan 20-3H






























After 7 5/8 casing is run and cemented discard the saltwater contaminated fluids and
drill the lower Sunniland with Zan Plex/HEC Polymer.
If Saltwater flow occur, there is the option to pump the contaminated system to the
boulder zone and then build new system using fresh water.
Normal pressure is expected if MW is needed weight up with Calcium Carbonate, if its
Saltwater weight up with Brine Water or Salt.
Mix Calcium Carbonate for Slugs for fresh water
Mix Brine water or Sack Salt if salt water is present.
Mix and pump 15-20 ppb graphite sweeps as need while sliding.



11,836TVD, 12,000MD- 11,903 TVD, 16,900MD
6 1/2 Hole
Drilling Fluid System Zan Plex/HEC polymer system
Key Products
Gel, Lignite, MF 55, Caustic, Soda Ash, MICA M, Mil-Lube, Salt Gel,
Drispac
Solids Control
Linear Motion Shaker, Dilution.
Potential Problems
Massive Sand, Hole Cleaning, Lost Circulation, Salt Water Flow, torque
and drag
Interval Drilling Fluid Properties
Depth Mud Mud Plastic Yield API HTHP
Interval Weight Viscosity Viscosity Point Fluid Loss Fluid Loss
(ft) (ppg) (sec/qt) (cp) (lb/100ft) (ml/30min) (ml/30min)
11,836TVD-16,900MD

8.8-9.0 36-40 10 to 16 10 to 14 25-20















EXHIBIT 19

PERFORMANCE BOND

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