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1996OA229-01 DRILLING HISTORY (Nov. 26, 1996 - June 22, 1997) - Genoil et al., Saint-Léonard No. 1

DRILLING HISTORY (Nov. 26, 1996

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BISSETT RESOURCE CONSULTANTS LTD.

200, 840 - 6 AVENUE S.W. CALGARY, ALBERTA T2P 3E5

(403) 294-1888 (24-hour)

(403) 263-0073 (Fax)

[email protected] (e-mail)

www.bissettres.com (website)

GENOIL INC.

GENOIL et al ST. LAT. 46°04'32.84",

LEONARD NO LONG. 72°23

. 1 '13.92"

DRILLING HISTORY NOVEMBER 26, 1996 TO JUNE 22, 1997

aBISSETT RESOURCE CONSULTANTS LTD.

CONTENTS

Item/Description Tab Page No.

I. DRILLING HISTORY 1

General Well Data Summary 1 - 17

II. SUPPORTING INFORMATION 2

Directions to Wellsite 1

Moving In and Rigging Up Checklist 2 - 5

Surface Casing Information 6

Surface Casing Pipe Tally 7

Intermediate Casing Information 8 - 9 Intermediate Casing Pipe Tally 10 - 11

Drilling Liner Casing Information 12

Drilling Liner Pipe Tally 13 - 14

Formation Leak Off Test Reports 15 - 17

Directional Survey Report 18 - 34

Directional Survey Plot Plan (Plastic Pocket) -

Deviation Surveys 35

Bit Records 36 - 41

Summary of Flow Prover Volume Calculations 42 - 45

Plug-Back and Abandonments Reports 46 - 49

Logging Record 50

Surplus Equipment Record 51

III. PROGRESS REPORTS 3

Daily Construction Reports 1 - 13

Daily Drilling Reports 14 - 232

Daily Construction Reports 233 - 260

aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY

DRILLING HISTORY

OPERATOR Genoil Inc.

WELL NAME & NUMBER GENOIL et al ST. LEONARD NO. 1

LOCATION Quebec Lowlands

COORDINATES Latitude: 46°04'32.84" north

. Longitude: 72°23'13.92" west

ELEVATIONS : 72.0 m GL 72.0 m CF 79.3 m KB

UNIQUE IDENTIFIER Not applicable

WELL LICENCE NUMBER : 93PG865

STATUS Exploration

FIELD Not defined

DRILLING CONTRACTOR Ressource Naturelle Ralex Inc. RIG NO. 01

TOTAL DEPTH (DRILLER) : 4029.7 m GL 4029.7 m CF 4037.0 m KB

PLUG BACK TOTAL DEPTH - m GL - m CF - m KB

INTERNAL TOTAL DEPTH - m GL - m CF - m KB

SPUD:DATE/TIME November 26, 1996: 2:00 p.m.

FINISHED DRILLING:DATE/TIME: June 11, 1997: 11:30 p.m.

RIG RELEASED:DATE/TIME • June 22, 1997: 12:00 noon

The data contained in this report has been compiled from field records

maintained by the Wellsite Drilling Supervisor(s): D. Gaboury/R. Genest/

M. Kramps/C. Creelman

DATE July 1, 1997 COMPILED BY: Gaboury/Genest/Kramps/Creelman

DATE December 1, 1997 APPROVED BY: Dick Bissett

PAGE NO. 01

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aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

HOLE SIZE RECORD

CONDUCTOR : 584 mm x 30.0 m KB. SURFACE : 444 mm x 569.5 m KB.

INTERMEDIATE - mm x - m KB. INTERMEDIATE : 244.5 mm x 2040.5 m KB.

MAIN - mm x - m KB. OTHER (EXPLAIN) -

TUBULAR RECORD

CONDUCTOR PIPE 508.0 mm OD, n/a kg/m, API GRADE n/a TYPE

CONST. Welded , RGE - THD

CONNECTION Welded . LANDED @ 30.00 m KB.

CEMENTING DETAILS Cemented full length, volume

unknown.

SURFACE CASING 339.7 mm OD, 90.8 kg/m, API GRADE K55 TYPE

CONST. - , RGE 3 THD 8RD ,

CONNECTION ST&C LANDED @ 569.50 m KB.

CEMENTING DETAILS 85.6 tonnes of Class "G"

INTERMEDIATE CASING 244.5 mm OD, 79.6 kg/m, API GRADE N80 TYPE

CONST. - , RGE 3 THD 8RD ,

CONNECTION LT&C . LANDED @ 2340.50 m KB.

CEMENTING DETAILS -

INTERMEDIATE CASING - mm OD, - kg/m, API GRADE TYPE

CONST. - , RGE - THD CONNECTION - . LANDED @ - m KB.

CEMENTING DETAILS

PAGE NO. 02

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BISSETT RESOURCE CONSULTANTS LTD. le:

GENERAL WELL DATA SUMMARY (CONTINUED)

TUBULAR RECORD (CONTINUED)

PRODUCTION LINER 177.8 mm OD, 43.2 kg/m, API GRADE L80 TYPE

CONST. - , RGE 3 THD 8RD ,

CONNECTION LT&C . LANDED @ 3494.00 m KB.

TOP LINER SET @ 2233.6 m KB. CEMENTING DETAILS:

mm OD, - kg/m, API GRADE - TYPE

CONST. - , RGE - THD

CONNECTION - . LANDED @ - m KB.

CEMENTING DETAILS

PRODUCTION CASING

REFER TO SECTION " 2 " FOR TUBULAR INFORMATION AND PIPE TALLIES.

DRILLING FLUID SUMMARY

TYPE INTERVAL USED

m KB AVERAGE PROPERTIES

DEN. VIS. W.L. PH PV YP SOLIDS

Gel chem 0 - 573 1060 55 14.0 95.0 28.0 8.0 4.00 Air 573 - 2698 Air drilling - - - - - Gel chew 573 - 2698 1350 200 5.0 9.0 85.0 35.0 15.00

Polymer 573 - 2342 1220 150 6.0 9.0 50.0 20.0 14.00

Polymer 2342 - 3495 1220 160 6.0 9.0 65.0 23.0 7.50

Air 3495 - 4037 Air drilling - - - - -

DRILLING FLUID SERVICE COMPANY : M-I Drilling Fluids Canada Inc.

PAGE NO. 03

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aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

FORMATION INTEGRITY PRESSURE TEST RECORD

A FORMATION INTEGRITY TEST WAS/NRSXXOT CONDUCTED. THE SURFACE CASING SHOE WAS

SET AT 569.5 m KB, DEPTH OF HOLE WAS 579.0 m KB AND THE FLUID COLUMN

WAS 1010.0 DURING THE TEST. SURFACE APPLIED LEAK-OFF PRESSURE OF 6 700 kPa

WAS RECORDED. THE RESULTANT LEAK-OFF PRESSURE AT THE CASING SHOE WAS 21.7

kPa/m OR 12 338 kPa TOTAL PRESSURE. [NO FORMATION INTEGRITY TEST WAS RUN,

kPa/m WAS EMPLOYED TO CALCULATE "MRCP" SHOULD A KICK SITUATION ARISE.]

REMARKS:

TESTING COMPANY: Ralex Inc.

REFER TO SECTION " 2 " FOR TEST RESULTS.

BIT RECORD

Surface Intermediate Intermediate Main Other

No. Used : 2/7 2 17 8

Size - mm : 444/311 311 215.9 155.6

Remarks: -

REFER TO SECTION " 2 " FOR BIT RECORD & HYDRAULICS.

DEVIATION SURVEY RECORD

SURFACE DEVIATION RANGED FROM A MINIMUM OF 0.30 ° OFF VERTICAL AT

501 m KB TO A MAXIMUM OF 6.10 ° OFF VERTICAL AT 292 m

KB.

INTERMEDIATE DEVIATION RANGED FROM A MINIMUM OF 0.40 ° OFF VERTICAL AT

2283 m KB TO A MAXIMUM OF 2.25 ° OFF VERTICAL AT 1040 m KB.

PAGE NO. 04

BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DEVIATION SURVEY RECORD (CONTINUED)

INTERMEDIATE DEVIATION RANGED FROM A MINIMUM OF 9.10 ° OFF

VERTICAL AT 3495.0 m KB TO A MAXIMUM OF 20.2 ° OFF

VERTICAL AT 3113.0 m KB.

MAIN : DEVIATION RANGED FROM A MINIMUM OF 3.75 ° OFF

VERTICAL AT 3880.0 m KB TO A MAXIMUM OF 10.75° OFF

VERTICAL AT 3484.0 m KB.

REMARKS Totco

REFER TO SECTION " 2 " FOR DRIFT DETAILS.

CORING RECORD

DEPTH - m KB METRES CORE NO. FROM TO FORMATION CORED REC'D REC. REMARKS

Took 9 sidewall samples at 3972 m (2), 3971 m (2), 3970 m (2), 3969 m (2) and

3968 m KB (1). Recovered 3 samples.

SERVICE COMPANY : Schlumberger of Canada

REFER TO SECTION " 2 " FOR CORING DETAILS.

PAGE NO. 05

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aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DRILL STEM TEST RECORD

DST INTERVAL - m KB NO. FROM TO FORMATION

RECOVERY & REMARKS

No DSTs were run. However, the gas flow was measured using a critical flow

prover when the main hole was being drilled. A 3-hour test was run, well was

flowing 3941.0 m3/d at 570 kPa flowing pressure which was not stabilized.

TESTING COMPANY : Wellsite Personnel

REFER TO SECTION " 2 " FOR TESTING DETAILS.

WIRELINE SURVEY RECORD

RUN NO. TYPE DEPTH - m KB

SCALES FROM TO

01 Phasor-Induction 2472.0 569.7 240/600

01 BHCSL 2460.0 569.7 240/600

02 Multi-Fingered Caliper 2285.0 6.0 240

02 DISFL 4028.0 3489.0 240/600

02 DSI 4008.0 2450.0 240/600

02 CNL-LDT 4036.0 2981.0 240/600

LOGGING COMPANY : Schlumberger of Canada

REFER TO SECTION " 2 " FOR LOGGING DETAILS.

PAGE NO. 06

BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

CEMENT PLUG RECORD

PLUG NO.

DEPTH - m KB CEMENT REMARKS FROM TO TONNES TYPE

1 3930.0 4037.0 4.8 "G" Felt at 3931 m KB. 2 3444.0 3544.0 5.3 "G" Felt at 3420 m KB.

3 2175.0 2275.0 4.6 "G" Felt at 2165 m KB. 4 600.0 650.0 3.7 "G" Felt at 600 m KB.

10.0 19.0 0.5 "G" -

REFER TO SECTION " 2 " FOR PLUG DETAILS.

MISCELLANEOUS DRILLING DETAILS

Remarks (Describe situations/problems/successes/etc. that were unique to drilling operations):

PAGE NO. 07

CI BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

96 11 26 Spudding 30 Spudded at 14:00.

96 11 27 Drilling 65 Drilled a 311 mm pilot hole.

96 11 28 Drilling 215 Drilled a 311 mm pilot hole.

96 11 29 Drilling 297 Drilled a 311 mm pilot hole.

96 11 30 Drilling 368 Drilled a 311 mm hole.

96 12 01 Drilling 418 Drilled a 311 mm hole.

96 12 02 Drilling 444 Drilled a 311 mm hole.

96 12 03 Drilling 476 Abrupt increase in hole angle to 7°.

96 12 04 Drilling 520 Drilled a_311 mm hole.

96 12 05 Waiting On 535 Plugged back from 535 m to 289 m KB.

Cement

96 12 06 Drilling 312 Polished off cement plug to 312 m KB.

Cement

96 12 07 Drilling 342 Ran mud motor to kick-off plug.

96 12 08 Drilling 377 Attempted to kick off plug.

96 12 09 Drilling 400 Kicked off plug, 95% formation at

400 m KB.

96 12 10 Tripping 426 Surveyed, drilled and tripped.

96 12 11 Drilling 496 Tripped, drilled and surveyed.

96 12 12 Tripping 534 Drilled and tripped. Drilled and tripped.

96 12 13 Tripping 94 Tripped. Picked up hole opener and opened

hole.

96 12 14 Open Hole 247 Tripped, plugged nozzle, opened hole and

tripped.

96 12 15 Open Hole 387 Opened hole.

96 12 16 Open Hole 416 Tripped, reamed and opened hole.

96 12 17 Stuck 492 Opened hole, tripped, changed hole opener.

Opened hole. Stuck drill string.

96 12 18 Tripping 547 Work drill string free. Tripped, ran

311 mm bit, reamed and tripped.

96 12 19 Tripping 547 Tripped, circulated. Tripped. Cemented and

tripped.

PAGE NO. 08

1

CI BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

96 12 20 Circulating 485 Tripped, circulated, surveyed, drilled

cement and circulate d.

96 12 21 Tripping 485 Circulated, tripped, reamed, circulated

and tripped.

96 12 22 Drilling 493 Tripped, ran 311 mm bit with motor.

Drilled.

96 12 23 Tripping 499 Drilled, surveyed, tripped, drilled and

tripped.

96 12 24 Tripping 507 Tripped, surveyed, drilled and surveyed.

96 12 25 Drilling 557 Drilled and surveyed.

96 12 26 Under Reaming 410 Drilled, surveyed, tripped, underreamed.

96 12 27 Open Hole 410 Underreamed, tripped and tripped.

96 12 28 Fishing 573 Opened hole, fished, tripped.

96 12 29 Tripping 555 Opened hole to 555 m KB. Tripped and

changed cutters.

96 12 30 Tripping 571 Tripped, opened hole to 571 m KB.

Circulated, tripped.

96 12 31 Waiting On 571 Tripped, ran casing, cemented, waited on

Cement cement.

97 01 01 Nippling Up 571 Waited on cement, headed up.

97 01 02 Nippling Up 571 Headed up BOPs.

97 01 03 Nippling Up 571 Headed up and pressure tested.

97 01 04 Drilling 582 Drilled out, drilled to 582 m KB. Unloaded

hole.

97 01 05 Drilling 642 Tripped for air drilling. Drilled.

97 01 06 Drilling 775 Drilled.

97 01 07 Drilling 944 Drilled.

97 01 08 Drilling 1140 Drilled.

97 01 09 Drilling 1339 Drilled and cleaned BOPs.

97 01 10 Drilling 1470 Tripped and drilled.

97 01 11 Drilling 1650 Drilled.

PAGE NO.

aBISSETT RESOURCE CONSULTANTS LTD.

J

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 01 12 Drilling 1850 Drilled and cleaned BOPs.

97 01 13 Drilling 1952 Drilled.

97 01 14 Drilling 2081 Drilled, wiper trip and surveyed.

97 01 15 Drilling 2270 Drilled and surveyed.

97 01 16 Drilling 2352 Jet BOPs, tripped and drilled.

97 01 17 Drilling 2491 Drilled and surveyed.

97 01 18 Surveying 2678 Drilled and surveyed.

97 01 19 Filling With 2698 Tripped, cleaned hole and filled with mud.

Mud

97 01 20 Tripping 2698 Mixed mud, filled hole in stages and

tripped.

97 01 21 Tripping 2698 Tripped, circulated, worked pipe and

tripped.

97 01 22 Tripping 2698 Tripped and mixed mud.

97 01 23 Tripping 2698 Tripped and reamed.

97 01 24 Mixing Mud 2698 Mixed mud and reamed.

97 01 25 Reaming 2698 Reamed and circulated.

97 01 26 Stuck Pipe 2698 Reamed and stuck pipe.

97 01 27 Stuck Pipe 2698 Worked stuck pipe.

97 01 28 Stuck Pipe 2698 Ran free point.

97 01 29 Tripping 2698 Tripped.

97 01 30 Reaming 2698 Picked up BHA. Tripped and mixed mud.

97 01 31 Reaming 2698 Reamed and tripped. 97 02 01 Reaming 2698 Reamed.

97 02 02 Reaming 2698 Reamed.

97 02 03 Tripping 2698 Reamed and tripped. 97 02 04 Reaming 2698 Tripped, reamed, circulated and repaired

rig.

97 02 05 Reaming 2698 Tripped and reamed. 97 02 06 Circulating 2698 Reamed, repaired rig and circulated. 97 02 07 Tripping 2698 Tripped, reamed, rag open hole logs.

PAGE NO. 10

BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 02 08 Tripping 2698 Tripped, reamed, circulated and ran

drillpipe open-ended.

97 02 09 Laying Down 2698 Tripped, circulated, cemented, tripped,

circulated and laid down drillpipe.

97 02 10 Tripping 2698 Tripped, circulated, tripped.

97 02 11 Circulating 2340 Tripped, repaired pumps, polished plug.

Circulated.

97 02 12 Circulating 2342 Circulated and made dummy trip.

97 02 13 Circulating 2342 Circulated and made dummy trip.

97 02 14 Circulating 2342 Circulated and made dummy trip.

97 02 15 Circulating 2342 Circulated, laid down drillpipe and ran

casing.

97 02 16 Circulating 2342 Ran casing and circulated.

97 02 17 Nippling Up 2342 Ran casing, circulated, cemented and

headed up.

97 02 18 Nippling Up 2342 Headed up, repaired rig and cleaned rig.

97 02 19 Pressure 2342 Headed up, repaired rig and pressure

Testing tested BOPs.

97 02 20 Tripping In 2342 Pressure tested BOPs. Ran BHA and drill-

pipe.

97 02 21 Blow Hole 2342 Ran drillpipe. Drilled out. Ran leak-off

test. Blew hole with air.

97 02 22 Blow Hole 2441 Drilled.

97 02 23 Tripping 2450 Drilled. Tripped for mud motor. Tripped

out. 97 02 24 Blow Hole 2504 Picked up new mud motor. Tripped. Drilled.

97 02 25 Drilling 2572 Plugged bit, tripped out. Laid down mud

motor. Tripped and drilled.

97 02 26 Working Stuck 2684 Drilled. Drill string stuck.

Pipe

97 02 27 Tripping 2684 Worked stuck pipe, mechanical back off.

PAGE NO. 11

aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 02 27 Tripping (Cont'd) Tripped.

97 02 28 Working Stuck 2684 Ran free point, backed off. Could not pull

Pipe free.

97 03 01 Cementing_ 2684 Reran string shot, tripped and ran cement

plug.

97 03 02 Circulating 2360 Tripped, drilled out cement and

conditioned mud.

97 03 03 Tripping 2360 Conditioned mud, waited on cement and

tripped out.

97 03 04 Conditioning 2360 Cleaned tanks, mixed new mud. Ran

Mud directional tools.

97 03 05 Drilling 2416 Tripped. Directionally drilled kick-off

plug. Displaced hole and drilled.

97 03 06 Drilling 2445 Directionally drilled. Tripped.

97 03 07 Drilling 2475 Tripped. Directionally drilled.

97 03 08 Drilling 2513 Directionally drilled.

97 03 09 Drilling 2540 Drilled, tripped. Drilled.

97 03 10 Drilling 2610 Directionally drilled.

97 03 11 Drilling 2651 Directionally drilled. Dummy trip.

Drilled.

97 03 12 Drilling 2695 Directionally drilled.

97 03 13 Drilling 2713 Directionally drilled. Dummy trip.

Tripped.

97 03 14 Drilling 2727 Accumulator test. Drilled. Tripped 15

stands for washout. Hit crown.

Directionally drilled.

97 03 15 Drilling 2773 Directionally drilled.

97 03 16 Drilling 2807 Dummy trip. Reamed. Inspected crown, okay.

97 03 17 Drilling 2860 Directionally drilled.

97 03 18 Drilling 2873 Drilled, tripped into casing. Repositioned

tools.

PAGE NO. 12

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CI BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 03 19 Wiper Trip 2922 Tripped. Drilled. Dummy tripped.

97 03 20 Wiper Trip 2979 Dummy tripped. Wiper in. Drilled.

Circulated.

97 03 21 Wiper Trip 3008 Dummy tripped. Drilled.

97 03 22 Tripping 3009 Tripped. Reamed from 2600 m to 2660 m KB.

97 03 23 Drilling 3032 Drilled. Motor failure. Tripped.

97 03 24 Tripping 3055 Tripped. Drilled.

97 03 25 Wiper Trip 3102 Dummy tripped to 2600 m KB.

97 03 26 Tripping 3125 Tripped.

97 03 27 Working Junk 3125 Tripped.

Sub

97 03 28 Drilling 3136 Motor drilled.

97 03 29 Drilling 3180 Motor drilled.

97 03 30 Reaming 3197 Dummy tripped to 2500 m KB. Reamed

bridges.

97 03 31 Tripping 3218 Tripped.

97 04 01 Drilling 3231 Motor drilled.

97 04 02 Drilling 3273 Motor drilled.

97 04 03 Reaming 3285 Dummy tripped to shoe. Cleaned bridges.

97 04 04 Drilling 3321 Motor drilled.

97 04 05 Tripping 3343 Tripped.

97 04 06 Circulating 3343 Wash-out occurred. Tripped. Dropped

single.

97 04 07 Fishing 3343 Fished.

97 04 08 Fishing 3343 Fished. Reamed.

97 04 09 Wiper Trip 3343 Fished.

97 04 10 Fishing 3343 Fished.

97 04 11 Fishing 3343 Fished. Conditioned mud and hole.

97 04 12 Fishing 3343 Fished. No recovery.

97 04 13 Fishing 3343 Fished. No recovery.

97 04 14 Fishing 3343 Fished.

PAGE NO. 13

CI BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 04 15 Fishing 3343 Fished.

97 04 16 Fishing 3343 Fished and ran bit.

97 04 17 Fishing 3343 Fished. Recovered single.

97 04 18 Fishing 3343 Fished. Clean-out run with bit.

97 04 19 Fishing 3343 Fished. Tripped and laid down fish.

97 04 20 Repairs 3343 Changed out shakers, installed top drive.

97 04 21 Repairs 3343 Installed top drive.

97 04 22 c/o Pipe 3343 Picked up drillpipe and directional

equipment.

97 04 23 Circulating 3343 Tripped, reamed bridges and conditioned

hole.

97 04 24 Drilling 3349 Drilled.

97 04 25 Clean-Out 3367 Pipe parted. Tripped. Cleaned to top of

fish.

97 04 26 Tripping 3367 Tripped out and recovered fish.

97 04 27 Tripping 3367 Ran in hole with tooth bit and cleaned to

bottom.

97 04 28 Circulating 3367 Circulated to condition mud and hole.

97 04 29 Tripping 3367 Circulated and tripped out.

97 04 30 Waiting 3367 Rigged to lay down drillpipe. Waited on

drillpipe inspector.

97 05 01 Circulating 3367 Circulated and waited on pipe inspector.

Tripped and inspected.

97 05 02 Inspection 3367 Inspected drillpipe.

97 05 03 Circulating 3367 Circulated, tripped, pulled out of hole

and inspected drillpipe.

97 05 04 Tripping 3367 Tripped, ran casing inspection log,

tripped in with directional tools.

97 05 05 Wiper Trip 3400 Dummy trip to shoe. Directionally drilled.

97 05 06 Circulating 3448 Drilled, increased mud density.

Sample

PAGE NO. 14

CBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 05 07 Wiper Trip 3495 Circulated sample, dummy tripped, drilled.

97 05 08 Tripping Out 3495 Dummy tripped, circulated to condition mud

and hole. Tripped out to run casing.

97 05 09 Running Liner 3495 Ran drilling liner.

97 05 10 Waiting On 3495 Cemented liner and waited on cement.

Cement

97 05 11 Running In 3495 Waited on cement. Tripped in to liner top.

Hole Tripped out.

97 05 12 Tripping, 3495 Ran 89 mm drillpipe. Drilled out cement.

Drilling Out

97 05 13 Circulating 3495 Circulated casing, waited on liner packer.

97 05 14 Running 3495 Made up and ran packer sealing assembly.

97 05 15 Pressure Test 3499 Set packer and pressure tested liner and

seal assembly, okay. Tripped in with bit.

Drilled out. Ran formation integrity test.

Made up bit, tripped in to 600 m KB. Blew

holé with air at 200-m intervals. Drilled.

97 05 17 Waiting On 3532 Air drilled. Air booster broke down.

Booster Tripped out and waited on repairs.

97 05 18 Waiting 3532 Waited on repairs.

97 05 19 Waiting 3532 Waited on repairs.

97 05 20 Waiting On 3532 Waited on repairs.

Mechanic

97 05 21 Waiting 3532 Waited on repairs.

97 05 22 Waiting 3532 Repaired air compressor. Tripped and air

drilled.

97 05 23 Surveying 3549 Tripped. Air drilled.

97 05 24 Surveying 3549 Attempted to achieve directional surveys.

No progress.

97 05 25 Surveying 3558 Surveyed, drilled and surveyed.

97 05 26 Running In 3606 Surveyed, drilled, surveyed, tripped. Hole

PAGE NO. 15

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Cli BISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 05 27 Running In 3606 Tripped in. Survey line broke.

Hole

97 05 28 Repairing 3607 Drilled.

Hole

97 05 29 Waiting On 3614 Drilled, compressor failure.

Parts

97 05 30 Surveying 3633 Repaired compressor. Drilled.

97 05 31 Drilling 3657 Drilled.

97 06 01 Tripping 3667 Tripped.

97 06 02 Tripping 3695 Tripped.

97 06 03 Waiting On 3695 Twisted off, fished and inspected BHA.

Inspector

97 06 04 Drilling 3698 Drilled.

97 06 05 Drilling 3704 Drilled, tripped out and picked up hammer.

97 06 06 Tripping 3754 Drilled. Tripped out plugged drill string.

97 06 07 Drilling 3805 Tripped and drilled.

97 06 08 Blow Hole 3888 Drilled.

97 06 09 Working Stuck 3889 Tripped out. Tripped in. Stuck drill

Pipe string.

97 06 10 Drilling 3896 Worked pipe free. Tripped.

97 06 11 Drilling 3992 Drilled.

97 06 12 Shutting In 4037 Drilled. Tripped out. Shut in well for

Well gas readings.

97 06 13 Displacing 4037 Read and recorded gas. Tripped in and

displaced to mud.

97 06 14 Circulating 4037 Circulated to condition mud and hole.

97 06 15 Running In 4037 Tripped, loggers broker down.

Hole

97 06 16 Logging 4037 Clean-out trip.

Hole

97 06 17 Logging 4037 Ran open hole logs.

PAGE NO. 16

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aBISSETT RESOURCE CONSULTANTS LTD.

GENERAL WELL DATA SUMMARY (CONTINUED)

DAILY CHRONOLOGICAL DRILLING HISTORY

DATE 08:00

REMARKS STATUS DEPTH

97 06 18 Running In 4039 Tripped in.

Hole

97 06 19 Waiting on 4039 Ran plugs 1 and 2, waited on cement.

Cement

97 06 20 Waiting 4039 Waited on cement. Ran plugs 3 and 4. 97 06 21 Waiting 4039 Waited on cement. Ran plug 5. Tore out

BOPs.

97 06 22 Welding Cap 4039 Cut off casing and welded on cap. Tearing

out.

97 06 23 Rig Released 4037 Released rig.

PAGE NO. 17

Saint-Leonard D-Astol

Approximately 5.0 km from location l o

H U po.

Approximately 10.0 km from location

Notre-Dame-du-Bon-Conseil 125.0 km to Montreal

Wellsite Supervisor: Calder H. Creelman Date: 96 08 17

PAGE NO. 01

Cli BISSETT RESOURCE CONSULTANTS LTD.

DIRECTIONS TO WELLSITE

Well: GENOIL et al ST. LEONARD NO. 1

Location: Quebec Lowlands

Below find sketch of route, kilometreage, informational signs and other directional indicators from the nearest city, town, or village to the wellsite.

Approximately 110.0 km to Quebec City

zyte

WELL: Quebec Lowlands GENOIL ST. LEONARD NO. 1 LOCATION:

CONTRACTOR:

RIG MANAGER:

RIG NO.: 01

Gerry Ouimet/Leslie Turriff

Ralex Inc.

Consultants This summary is to be completed and forwarded to Bissett Resource Ltd.'s office when the contractor is rigging up to spud.

1. CAMP

(a)

(b)

(c)

(d)

(e)

(f)

Drilling supervisor, geologist, rig manager

Yes

Distance of camp from rig (m)

Located up-wind to the prevailing wind?

Located on the access road. If no, where?

Located to prevent drainage from wellsite?

Who, if anyone, has living quarters on the well location Sample of drinking water sent away for analysis?

(a)

(b)

(c)

(d)

(e)

Type and make of drawworks

Type of brake

If brake is water cooled, is line hooked up?

Type and make of mast

Size of drilling line

BISSETT RESOURCE CONSULTANTS LTD.

MOVING IN AND RIGGING UP CHECKLIST

2. DRILLING EQUIPMENT

(f) Mud Pumps: Number

Make

Size of liners in stock

Pop valves safe?

Outlet on suction to allow for tie-in of water or oil for displacement? Size

(g) Mud Tanks: Number

Capacity (m3 in each)

Bypass for tank cleaning

Mud Guns

Two

National 9-P-1000

159 mm and 140 mm

Yes

Yes

Three

165.0 Yes

Yes

PAGE NO. 02

Brewster N75A

Parkersburg 46SR

n/a

LC Moore, 41.5 m

32 mm

n/a

94 kW

Diesel

Automatic

861 kPa

861 kPa

Good

96 10

45.0

n/a 114 mm, "E"/114 mm,

Prespud/prespud

114XH/114XH

BISSETT RESOURCE CONSULTANTS LTD. 414,

(h) Fuel Storage: Capacity 17 000 litres

Distance from wellhead (m) 7.0

Cut-off valve for fuel supply Yes

(i) Water Supply Source: Storage Capacity

(j) Boiler: Capacity

Type of Fuel

Automatic or Manual

Pressure Rating

Pop Discharge Pressure

Condition

Date of Last Inspection

Distance from well (m)

(k) Drill Pipe: Number of Joints

Size and Grade

Inspection Date

Thread Description

Condition (good, fair, poor) Premium

(1) Pipe Racks: Number Three sets

Condition Good

Footing Adequate

(m) Drill Collars: Number OD x ID

Yes

6 - 229 mm, 21 - 171 mm

Thread Description

(n) Overshot: Make

Size Range

(o) Substructure: Clearance from ground (m)

Condition of substructure

Matting considered adequate

(p) Shale Shakers: Size

Condition

Condition of Motor and Electrical Connections

177H90 and 127H90

Rental item

114 mm to 229 mm

7.15

Good

Yes

Two Brandt Tandem

Fair

Okay

PAGE NO. 03

J

Okay

22.0 m

Okay

Yes

Yes

Yes

Yes

Yes/chain

Yes

n/a

8 - 14 kg Ansul, ABC 96 11 30 Boiler, toolhouse, dog

house, light plan, ac-

mulator shack

2 - doghouse and trailer

Yes

MSA - Six

Six extra bottles

Yes

Yes

Yes

aBISSETT RESOURCE CONSULTANTS LTD.

(q) Rig Lighting: Condition of Wiring

Distance of Light Plant from Well

Lighting considered adequate

All lights vapor-proof

3. SAFETY OF PERSONNEL AND PROPERTY

(a) All guards in place on V-belts and chains

(b) Crown blocks and monkey boards accurately fastened

(c) Safety escape line installed

(d) Kelly hose tied with wire rope at both ends

(e) Safety line on tongs in good condition and counter weights suspended below floor or safely chained

(f) Number of Fire Extinguishers

Size and Type

Date of Last Inspection

Where located

(g) Number of first aid kits and location

Considered adequate for location

(h) Number of air packs on hand

Type of air packs

(i) Floor and catwalk clear of loose objects, unsecured boards, protruding nails, etc.

All safety rails on floor and stairs in place

(j) Is the doghouse heater a safe installation

(k) Is the flare pit 50 m from the well and is brush cleared away so that no flares can ignite the surrounding trees? Yes

PAGE NO. 04

1

aBISSETT RESOURCE CONSULTANTS LTD.

4. MISCELLANEOUS

(a) My Mobile Number(s) (819) 472-0176

Trailer Land Line (819) 399-2484

(b) Area(s) -

(c) Channel(s) Name -

(d) Mobile in truck or trailer -

(e) Rig Manager Mobile Number(s) (819) 399-2415 Trailer

Land line

(f) Mobile in truck or trailer

(g) List name(s) of personnel with Blowout Prevention Training:

Name

Type of Ticket Expiry Date

Marcel Jacque

Raymond Berube

Mark Belanger

First Line BOP Not available

First Line BOP 99

First Line BOP Not available

Tim Astel First and Second Line BOP 96 12

Gerry Ouimet

Leslie Turriff

Doug Gaboury

Randy Genest

Mike Kramps

Second Line BOP

Second Line BOP

Second Line BOP

Second Line BOP

Second Line BOP

Not available

Not available

98 07 19 97 11 07

Not available

98 03 29 Calder Creelman Second Line BOP

5. FIELD FOREMAN'S COMMENTS

Wellsite Supervisor: Calder Creelman Date: 96 11 25

PAGE NO. 05

1

BISSETT RESOURCE CONSULTANTS LTD. Cil

CASING INFORMATION

Surface Casing OD

339.7 Intermediate Casing OD

Production Casing OD

Liner OD

mm

mm

mm

mm

GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands DATE 96 12 30

Casing Depth

Jts. On m on Weight Joints Landed m Run

Location Location _1111.2_ Grade Rge• Thread T&C Make Run m in Well

51 644.30 90.8 K55 8RD S Nippon 45 569.52 570.03

Accessories Shoe: Make Weatherford Type Float 0.50

Collar: Make Weatherford Type Float 0.35

Centralizers: Make Weatherford No. 9 Landing Joint Length (When Used)

Positions: Centre joint 1, CC2, 4, 20, Overall Length of String 570.88

25, 30, 35, 40 and 45. One solid m up from KB (Subtract) 1.36

centralizer 4 m below surface Depth Set - Driller Tally 569.52

Scratchers: Make Weatherford No. 12 Shoe Joint Overall (Subtract) 14.91

Collar Depth - Driller Tally 554.61

Positions: Evenly spaced across joints Remarks: -

1 and 2 from 569.00 to 540.99

No. of Collars Welded First two joints

Running and Cementing

Running

Power Tongs Weatherford Torque: Max. 10 090 N.m Nom. 8 070 N.m Min. 6 050 N.m

Times: Started In 10:00 Hrs On Bottom 19:45 Hrs Circulated 205 Minutes

Fill Up Points Every joint

Cementing

Cement Company Dowell Schlumberger

Types & Quantity of Cement 85.6 tonnes of Class "G"

Slurry Weight 1900 kg/m3 Flush Ahead: Type Fresh Water Amount 10.0 m3

Times: Start Mix 23:49 Hrs Finish 01:07 Hrs Start Disp. 01:10 Hrs Finish 02:15 Hrs

Calculated Displacement 44.0 m3 Pressures: Max. Pump 7 000 kPa Bump 10 000 kPa

Cement Returns Yes/NN No. of m3 10.0

Landing

Time 13:00 Hrs Date 96 12 31 Weight of Strings (less blocks) 49 000 daN

Weight Landed in Slips n/a daN Landing Bowl (size x series x type) -

Remarks: -

Wellsite Supervisor Mike Kramps

PAGE NO. 06

WELL

CI BISSETT RESOURCE CONSULTANTS LTD.

PIPE TALLY

DATE 96 12 30 PAGE NO 1 OF 1

WELL GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands

OPERATOR Genoil Inc. RIG Ralex 01

PIPE DESCRIPTION SIZE 339.7 mm WT 90.8 kg/m GRADE K55 RANGE 3

CPLG ST&C THREAD 8RD MFG Nippon NEW OR USED New

TYPE OP STRING Surface Casing TALLIED BY T. Meadows/C. CreelmanTHREADS: ON X OFF

Length Length Length Length Length

No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths

1 * 13 97 21 _ 3 59 41 41 61 81

2 12 47 22 11 89 42 13 95 62 82

3 " 13 18 23 11 48 43 12 75 63 83

4 13 6o 24 12 18 44 14 26 64 84

5 13 84 25 11 80 45 12 53 65 85

6 16 26 12 42 46 11 90 66 86

7 13 50 27 11 2_ 47 9 54 67 87

8 12 5_ 28 10 21 _ 48 * 11 64 68 88

9 14 31 29 11 79 49 * 11 51____ 69 89

10 14 16 3o 11 41 5o • 11 65 7o 90

Total Total Total Total Total

1-10 134 71 21-30 118 76 41-50 123 21 61-70 81-90

11 14 12 31 12 08 51 • 12 25 71 91

12 14 25 32 13 84 52 72 92

13 11 75 33 11 87 53 73 93

14 ____La 62 34 10 99 54 74 94

15 12 35 14 06 55 75 95

16 12 75 36 6o 56 76 96

17 12 12 37 13 11 57 77 97

18 11 966_ 38 12 22_ 58 78 98

19 12 6_ 39 14 24 59 79 99

20 11 11 40 12 75 6o 8o 100

Total Total Total Total Total

11-20 126 54_ 31-40 128 83 51-60 12 2_ 71-80 91-100

Total

Total Total Total Total

1-20 261 25 21-40 247 59 41-60 135 46 61-8o 81-100

Total 1 - 20 261 25 Grand Totals Remarks • Joints left out

Total 21 - 40 247 59 1 - 100 644 30 Length g = 74.27 m

Total 41 - 60 135 46 Grand Totals

Total 61 - 80 - - 101 -

Total 81 - 100 - - Grand Totals Total Jts on Location 51

Grand Total

Grand Total

1 - 100 644 3o 1 - loo

Wellsite Supervisor

644 30 Mike Kramps

PAGE NO. 07

J

Grade Rge.

N80 3

Casing

Jts. On m on

Weight

Location Location kg/m

193

2524.89

79.6

Running

Power Tongs Weatherford Torque: Max. 17 747 N.m Nom. 14 195 N.m Min. 10 643 N.m

thereafter. Fill Up Points Every 10 joints to shoe, every joint

Cementing First Stage

Types & Quantity of Cement Lead: 59.0 tonnes of Class "G" + 2.0% D20 + 0.5% D65 + 3 L/tonne D81.

0.3% D160 + 5 L/tonne D81. Tail: 49.0 tonnes of Class "G" + 0.75% D65 +

CrISSETT RESOURCE CONSULTANTS LTD.

CASING INFORMATION

Surface Casing OD - mm

Intermediate Casing OD 244.5 mm

Production Casing OD - mm

Liner OD - mm

WELL GENOIL et al ST. LEONARD NO. 1

Accessories

Centralizers: Make Weatherford No. 24

Positions: Ctr. jt. CC2, 4 every 100 m-

1500 m,1450 m,1400 m,590 m,550 m,500 m,

350 m,300 m,250 m,200 m,150 m,100 m,50 m

Scratchers: Make None No.

2 centralizers

Positions: 1 above stage collar and 1

below in the middle of each joint

No. of Collars Welded None

LOCATION Quebec Lowlands DATE 97 02 16

Depth

Joints Landed m Run

Thread T&C Make Run m in Well

8RD L Prud. 179 2340.50 2345.28

Shoe: Make Weatherford Type Ball 0.36

Collar: Make Weatherford Type Ball 0.47

Landing Joint Length (When Used) Stage Collar 0.80

Overall Length of String 2346.91

m up from KB (Subtract) 6.41

Depth Set - Driller Tally 2340.50

Shoe Joint Overall (Subtract) 14.48

Collar Depth - Driller Tally 2326.02

Remarks: Thread-locked first 3 joints and stage collar.

Stage collar at 626.38 m KB.

Running and Cementing

Times: Started In 21:30 Hrs On Bottom 03:30 Hrs Circulated Minutes 420

Cement Company Dowell Schlumberger

Slurry Weight 1 785/1 700 kg/m3 Flush Ahead: Type Water/CW100 Amount 4.0/6.0 m3

Times: Start Mix 13:21 Hrs Finish 14:58 Hrs Start Disp. 15:05 Ers Finish 16:55 Hrs

Calculated Displacement 85.88 m3 Pressures: Max. Pump 5-6 000 kPa Bump 24 000/15 000 kPa

Cement Returns XXX/No No. of m3 0.0

Landing

Time 01:00 Hrs Date 97 02 17 Weight of Strings (less blocks) 130 000 daN

Weight Landed in Slips 140 000 daN Landing Bowl (size x series x type) McEvoy Type 5-11

Remarks: 21 000 kPa, 346 mm slip-on weld.

Wellsite Supervisor Mike Kramps/Doug Gaboury

PAGE NO. 08

J

aBISSETT RESOURCE CONSULTANTS LTD.

CASING INFORMATION

Surface Casing OD - mm

Intermediate Casing OD 244.5 mm

Production Casing OD mm

Liner OD - mm

WELL GENOIL et al ST. LEONARD NO. 1

Accessories

Centralizers: Make Weatherford No. 24

Positions: Ctr. jt. CC2, 4 every 100 m-

1500 m,1450 m,1400 m,590 m,550 m.500 m,

350 m,300 m,250 m,200 m,150 m,100 m,50 m

Scratchers: Make None No.

2 centralizers Collar Depth

Positions: 1 above stage collar and 1

below in the middle of each joint

No. of Collars Welded None

LOCATION Quebec Lowlands DATE 97 02 16

Shoe: Make Weatherford Type Ball

Collar: Make Weatherford Type Ball

Landing Joint Length (When Used) Stage Collar

Overall Length of String

m up from KB (Subtract)

Depth Set - Driller Tally

Shoe Joint Overall (Subtract)

- Driller Tally 2326.02

Remarks: Stage collar at 626.38 m KB.

Casing

Jts. On m on

Weight

Location Location k m Grade Rge• Thread T&C

193 2524.89

79.6 N80

8RD L

Depth

Joints

Landed m Run

Make Run m

in Well

Prud. 179 2340.50 2345.28

0.36

0.47

0.80

2346. 91

6.41

2340.50

14.48

Running and Cementing

Running

Power Tongs Weatherford Torque: Max. 17 747 N.m Nom. 14 195 N.m Min. 10 643 N.m

Times: Started In 21:30 Hrs On Bottom

03:30 Hrs Circulated 420 Minutes

Fill Up Points Every 10 joints to shoe, every joint thereafter.

Cementing

Second Stage

Cement Company Dowell Schlumberger

Types & Quantity of Cement 28.0 tonnes of Class "G" + 2.0% D20 + 0.5% D65 + 3 L/tonne D81.

Slurry Weight 1 895 kg/m3 Flush Ahead: Type

Times: Start Mix 18:13 Hrs Finish 18:59

Water Amount 1.0 m3

Hrs Start Disp. 19:06 Hrs Finish 19:58 Hrs

5-6 000 kPa Bump 15 000 kPa Calculated Displacement 23.0 m3 Pressures: Max. Pump

Cement Returns Yes/MN No. of m3 2.0

Landing

Time 01:00 Hrs Date 97 02 17 Weight of Strings (less blocks) 130 000 daN

Weight Landed in Slips 140 000 daN Landing Bowl (size x series x type) -

Remarks: -

Wellsite Supervisor Mike Kramps/Doug Gaboury

PAGE NO. 09

1

aBISSETT RESOURCE CONSULTANTS LTD.

PIPE TALLY

DATE

WELL

OPERATOR

GENOIL et al ST. LEONARD NO. 1

Genoil Inc.

LOCATION

RIG

PIPE DESCRIPTION SIZE 244.5 mm WT 79.6 kg/m GRADE N80 RANGE 3

CPLG LT&C THREAD 8RD MFG Prudential NEW OR USED New

TYPE OF STRING Intermediate Casing TALLIED BY M. Kramps/D. Gaboury THREADS: ON OFF X

Length Length Length Length Length

No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths

1 13 65 21 12 $7 41 13 54 61 13 30 81 21

2 12 91 22 12 88 42 13 02 62 13 20 82 13 15

3 12 L5_____ 23 12 7_ 43 12 84 63 13 2.5 83 13 24 4 13 11 24 12 911_ 44 13 06 64 13 28 84 12 89 5 12 88 25 13 29 45 13 02 65 13 0_ 85 13 18 6 13 35 26 01 46 ____La 13 35 66 12 86 86 12 93

7 13 42_ 27 28 47 13 30 67 13 08 87 12 70 8 25 28 12 83 48 13 10 68 12 85 88 12 84 9 13 67 29 12 92 49 13 00 69 12 98 89 13 2_ 10 13 27 30 13 6 50 13 55 70 10 90 12 79 Total Total Total Total Total

1-10 132 23 21-30 129 96 41-5o 131 78 61-70 13o 75 81-90 130 16 11 13 5_ 31 12 97 51 13 0_ 71 13 005 91 12 88 12 12 6o 32 13 22____ 52 13 20 72 1 92 13 14 13 12 24 33 13 14 53 12 62 73 12 9_ 93 13 31 14 13 o6 34 13 77 54 13 00 74 _13 35 94 12 90

15 13, 26 35 13 4i 55 13 04 75 13 4- 95 12 97 16 13 36 12 61 56 13 30 76 12 112____ 96 12 79 17 12 62 37 13 51 57 3_ 77 13 24 97 12 97 18 13 04 38 13 20 58 12 94 78 01 ____La 98 13 35 19 13 26 39 13 10 59 12 89 79 13 08 99 12 95 20 13 16 40 13 44 6o 1 17 80 13 10 100 13 22

Total Total Total Total Total

11-20 130 25 31-40 132 48 51-60 131 49_ 71-80 131 28 91-100 130 48

Total Total Total Total Total

1-20 262 48 21-40 262 44 41-60 263 27 61-80 262 03 81-100 26o 64

Total 1 - 20 262 48 Grand Totals Remarks Left out 14 joints

Total 21 - 4o 262 44 1 - 100 1310 86 Float - 0.47

Total 41 - 60 263 27 Grand Totals Shoe - 0.36

Total 61 - 80 262 03 101 - _ - - Stage Collar - 0.80

Total 81 - 100 260 64 Grand Totals Total Jts on Location 193

Grand Total Wellsite Supervisor Grand Total

1 - 100 1310 86 1 - loo 1310 86 Mike Kramps/Doug Gaboury

PAGE NO. 10

1

PAGE NO 1 OF 2 97 02 14 Quebec Lowlands

Ralex 01

BISSETT RESOURCE CONSULTANTS LTD. ~+

PIPE TALLY

DATE 97 02 14 PAGE NO 2 OF 2

WELL GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands

OPERATOR Genoil Inc. RIG Ralex 01

PIPE DESCRIPTION SIZE 244.5 mm WT 79.6 kg/m GRADE N80 RANGE 3

CPLG LT&C THREAD 8RD MFG Prudential NEW OR USED New

TYPE OF STRING Intermediate Casing TALLIED BY M. Kramps/D. Gaboury THREADS: ON OFF X

Length Length Length Length Length

No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths

1 55 21 __la 13 02 41 13 21 61 12 85 81

2 13 12 22 13 05 42 12 67 62 12 6_____ 82 3 13 05 23 13 o6 43 _13 67 63 13 57 83 4 08 24 ____La 13 07 44 13, 10 64 12 88 84 5 12 22 25 12 71 45 13 17 65 13 17 85

6 13 49 26 12 78 46 12 75 66 13 26 86 7 12 11 27 12 83 47 13 1Z__ 67 22__ 87 8 13 05 28 12 82 48 13 3_ 68 12 9_ 88

9 13 33 29 12 78 49 12 93 69 13 21 89 10 12 87 30 13 19_ 5o 13 16 70 13 31 90 Total Total Total Total Total

1-10 131 37 21-30 129 31 41-50 131 28 61-70 131 04 81-90 11 13 3_ 31 13 31 51 12 70 71 3 02 _ 91 12 07 32 __la 15 21 52 ____11 10 72 13 06 92 13 ____La 01 33 12 93 53 ____13 13 73 13 26 93 14 13 06 34 13 42 54 13 01 74 3 3_ _ 94 15 12 9_ 35 12 86 55 12 73 75 5_ ____12 95 16 13 6o 36 12 68 56 3 _ 36 76 13 18 96

17 ____11 42 37 12 2_ 57 12 90 77 13 16 97 18 12 82 38 13 01 58 13 06 78 3 2 3 _ 98 19 13 38 39 13 9 59 13 20 79 12 97 99 20 12 82 4o 13 2— 6o 1'3 26 8o 100 Total Total Total Total Total 11-20 131 52 31-40 130 75 51-60 130 45 71-80 118 70 91-100

Total Total Total Total Total 1-20 262 89 21-40 26o 06 41-60 261 73 61-8o 249 74 81-loo

Total 1 - 20 262 89 Grand Totals Remarks Left out 14 joints

Total 21 - 4o 26o 06 1 - loo 1310 86

Total 41 60 261 73 Grand Totals

Total 61 - 80 249 74 101 - 200 1034 42

Total 81 - 100 - - Grand Totals Total Jts on Location 193

Grand Total Grand Total Wellsite Supervisor

1 - 100 1034 42 1 - 200 2345 28 Mike Kramps/Doug Gaboury

PAGE NO. 11

aBISSETT RESOURCE CONSULTANTS LTD.

CASING INFORMATION

Surface Casing OD - mm

Intermediate Casing OD - mm

Production Casing OD - mm

Liner OD 177.8 mm

WELL GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands DATE 97 05 09

Casing Depth

Jts. On m on Weight Joints Landed m Run

Location Location kg/m Grade Rge. Thread T&C Make Run m in Well

112 1459.12 43.2 L80 3 8RD L Algoma 96 3494.00 1254.08

Ball CATC HC1 0.36

Liner hanger tieback 5.17

Accessories Shoe: Make Weatherford Type Guide 0.37

Collar: Make Weatherford Type Float 0.42

Centralizers: Make Weatherford No0 85 Landing Joint Length (When Used) 2235.40

Positions: Stand off every collar Overall Length of String 3495.80

m up from KB (Subtract) 1.80

Depth Set - Driller Tally 3494.00

Scratchers: Make None No. Shoe Joint Overall (Subtract) 14.59

Collar Depth - Driller Tally 3479.41

Positions: Remarks: Thread-locked three joints. Landing joint

consisted of 1231.78 m of 127 mm drillpipe, 1000.85 m

of 114 mm drillpipe and 2.77 m of ball catch and liner

No. of Collars Welded None hanger. Top of tieback at 2233.60 m KB.

Running and Cementing

Running

Power Tongs Weatherford Torque: Max. 10 110 N.m Nom. 8 090 N.m Min. 6 070 N.m

Times: Started In 13:30 Hrs On Bottom 12:15 Hrs Circulated 390 Minutes

Fill Up Points Every 10 joints.

Cementing

Cement Company Dowell Schlumberger

Types & Quantity of Cement 46.5 tonnes of Class "G" + 10.5% D81 + 0.5% D65 + 0.7% D160 FL +

0.61% Antifoam

Slurry Weight 1 900 kg/m3 Flush Ahead: Type Water/Mud Push Amount 0.5/3.0 m3

Times: Start Mix 20:00 Hrs Finish 21:00 Hrs Start Disp. 21:10 Hrs Finish 22:05 Hrs

Calculated Displacement 42.2 m3 Pressures: Max. Pump 19 000 kPa Bump 22 700 kPa

Cement Returns XXX/No No. of m3

Landing

Time 22:05 Hrs Date 97 05 09 Weight of Strings (less blocks) 95 000 daN

Weight Landed in Slips 40 000 daN Landing Bowl (size x series x type) n/a

Remarks: Cement job went very well.

Wellsite Supervisor Randy Genest/Doug Gaboury

PAGE NO. 12

Cli BISSETT RESOURCE CONSULTANTS LTD.

PIPE TALLY

DATE 97 05 08 PAGE NO 1 OF 2

WELL GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands

OPERATOR Genoil Inc. RIG Ralex 01

PIPE DESCRIPTION SIZE 177.8 mm WT 43.2 kg/m GRADE L80 RANGE 3

CPLG LT&C THREAD 8RD MPG Algoma NEW OR USED New

TYPE OF STRING Drilling Liner TALLIED BY Doug Gaboury THREADS: ON OFF X

Length Length Length Length Length

No. Metres Tenths No. Metres Tenths No• Metres Tenths No. Metres Tenths No. Metres Tenths

1 13 8o 21 _ 13 2.7___ 41 12 56 61 13 16 81 13 20

2 12 75 22 13 00_ 42 13 06 62 13 03 82 13 18

3 13 6o 23 13 04 43 12 56 63 12 26 83 13 19

4 13 15 24 13 27 44 12 89 64 13 18 84 13 02

5 13 18 25 13 /2____ 45 13 18 65 13 04 85 12 66

6 13 42 26 13 20 46 13 19 66 13 07 86 13 07

7 13 2_ 27 13 50 47 13 06 67 12 78 87 13 03

8 13 45 28 12 95 48 13 07 68 13 17 88 13 04

9 13 17 29 12 63 49 13 06 69 13 18 89 13 19

10 13 17 3o 13 04 5o 13 18 7o ____11 20 90 13 20

Total Total Total Total Total

1-10 132 92 21-30 131 45 41-50 129 81 61-70 130 07 _ 81-90 130 78

11 13 08 31 13 17 51 13 22 71 13 06 91 13 19

12 13 08 32 13 18 52 13. 06 72 17 92 13 08

13 13 08 33 13 20 53 13 08 73 13 19 _ 93 13 08

14 13 06 34 13 08 54 13 05 74 13 17 94 13 18

15 13 15____ 35 13 20 55 13 18 75 13 95 13 08

16 _ 13 19 36 13 06 56 13 16 76 13 16 96 11 95

17 _ 13, 3.1____ 37 10 93 57 12 43 77 13 06 97 12 6o

18 13 18 38 13 05 58 12 90 78 13 19 98 13 28

19 12 69 39 13. 17 59 12 61 79 13 04 99 12 13

20 _ 13 18 4o 13 11 6o 13 80 13 17 100 12 01 Total Total Total Total Total 11-20 _ 131 10 31-40 129 15 51-60 129 86 71-80 131 38 91-100 127 58

Total Total Total Total Total 1-20 - 264 02 21-40 260 6o 41-6o 259 67 61-80 261 45 81-100 . 258 36

Total 1 - 20 264 02 Grand Totals

Total 21 - 4o 26o 6o 1 - loo

Total 41 - 6o 259 67 Grand Totals

Total 61 - 80 261 45 101

Total 81 - 100 258 36 Grand Totals

Remarks -

1304 10

Total Jts on Location 112

Grand Total Grand Total Wellsite Supervisor

1 - 100 1304 10 1 - 100 1304 10 Randy Genest

PAGE NO. 13

J

1 12 91____ 21 41

2 13 17 22 42

3 13 16 23 43

4 13 06 24 44

5 13 02 25 45

6 12 L__ 26 46

7 12 93 27 47

8 13 14 28 48

9 12 14 29 49

10 13 11 30 50

Total Total Total

1-10 129 41 21-30 41-50

11 12 46 31 51

12 13 32 52

13 33 53

14 34 54

15 35 55

16 36 56

17 37 57

18 38 58

19 39 59

20 4o 60

Total Total Total Total Total

11-20 25 61 31-40 51-60 71-80 91-100

Total Total Total Total Total

1-20 155 02 21-40 41-60 61-80 81-100

Total 1 - 20 155 02 Grand Totals Remarks

61 81 62 82 63 83 64 84 65 85

66 86

67 87 68 88 69 89 70 90

Total

61-70

Total

81-90

71 91 72 92

73 93 74 94

75 95 76 96

77 97 78 98

79 99 80 100

Cil BISSETT RESOURCE CONSULTANTS LTD. 40.

PIPE TALLY

DATE 97 02 14

PAGE NO 2 OF 2

WELL

GENOIL et al ST. LEONARD NO. 1

LOCATION

Quebec Lowlands

OPERATOR Genoil Inc. RIG

Ralex 01

PIPE DESCRIPTION SIZE 177.8 mm WT 43.2 kg/m GRADE L80 RANGE 3

CPLG LT&C THREAD 8RD MFG Algoma NEW OR USED New

TYPE OF STRING Drilling Liner TALLIED BY Doug Gaboury THREADS: ON OFF X

Length Length Length Length Length

No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths No. Metres Tenths

Total 21 40 - - 1 - 100

Total 41 - 60 - - Grand Totals

Total 61 - 80 - - 101 - 200

Total 81 - 100 - - Grand Totals

1304 10

155, 02

Total Jts on Location 112

Supervisor Wellsite

1459 12 Randy Genest

PAGE NO. 14

Grand Total

Grand Total

1 - 100 155 02

1 - 200

J

aBISSETT RESOURCE CONSULTANTS LTD.

FORMATION LEAK-OFF TEST

DATE: 97 01 04

WELL

OPERATOR

TESTING COMPANY

TEST CONDUCTED BY : (Title)

SIZE OF PUMP AND PUMPING RATE .

GENOIL et al ST. LEONARD NO. 1

Genoil Inc.

Ralex 01

Mike Kramps, Wellsite Supervisor

1.

2.

Depth Drilled Out

Surface Casing Setting Depth

579.00 m

569.50 m

3. Gradient of Fluid in Hole During Test 9.90 kPa/m

4. Hydrostatic Pressure at Casing Shoe (2 x 3) 5 638 kPa

5. Leak-Off Pressure (Surface) 6 700 kPa

6. Total Pressure at Shoe (4 + 5) 12 338 kPa

7. Leak-Off Pressure Gradient (6/2) 21.70 kPa/m

Projected Total Depth 4058.00 m

Depth of Intermediate Casing (If Applicable) 2700.00 m

Maximum BHP Gradient Expected - kPa/m

Zone and Depth Where Encountered - m

Gradient of Drilling Fluid to be Used When Penetrating Hydrocarbon Bearing Strata Air kPa/m

Wellsite Supervisor: Mike Kramps

PAGE NO. 15

J

GENOIL et al ST. LEONARD NO. 1

■N■■■■■■■N■B■Y■■

mnnml J HhHHHHhIIIIHL

IIIInE1lnitn

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CUMULATIVE VOLUME PUMPED - LITRES PAGE NO. 16

aBISSETT RESOURCE CONSULTANTS LTD.

FORMATION LEAK-OFF TEST

DATE: 97 02 18

WELL

OPERATOR

TESTING COMPANY

TEST CONDUCTED BY : (Title)

SIZE OF PUMP AND PUMPING RATE

GENOIL et al ST. LEONARD NO. 1

Genoil Inc.

Ralex 01

Mike Kramps, Wellsite Supervisor

1.

2.

Depth Drilled Out

Surface Casing Setting Depth

2342.00 m

2340.50 m

3. Gradient of Fluid in Hole During Test 9.90 kPa/m

4. Hydrostatic Pressure at Casing Shoe (2 x 3) 23 185 kPa

5. Leak-Off Pressure (Surface) 23 000 kPa

6. Total Pressure at Shoe (4 + 5) 46 185 kPa

7. Leak-Off Pressure Gradient (6/2) 19.73 kPa/m

Projected Total Depth

Depth of Intermediate Casing (If Applicable)

Maximum BHP Gradient Expected

Zone and Depth Where Encountered

Gradient of Drilling Fluid to be Used When Penetrating Hydrocarbon Bearing Strata

Wellsite Supervisor:

4058.00 m

2340.50 m

12.85 kPa/m

: Potsdam,3958.00 m

Air kPa/m

Mike Kramps

PAGE NO. 17

i

GENOIL GENOIL ET AL ST. LEONARD #1

NO#1 ST. LEONARD

QUEBEC

SURVEY LISTING

Well name :

Your ref : CORRECTION RUN Our ref.: svy3052

Date printed : 24-Jun-97 Date created : 9-Dec-96 Last revised : 24-Dec-96

Field is centred on 0.000.0.000.0.000

Structure is centred on n46 4 32.840.w72 23 13.920.0.000

PAGE NO. 18

GENOIL SURVEY LISTING Page 1 GENOIL ET AL ST. LEONARD #1 ,NO#1 Your ref : CORRECTION RUN

ST. LEONARD,QUEBEC Last revised : 24-Dec•96

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 0.00 21.00 1.00 0.00 21.00 0.18 N 0.00 E 1.43 0.17 30.00 1.00 0.00 30.00 0.34 N 0.00 E 0.00 0.32 45.00 1.50 6.00 44.99 0.67 N 0.02 E 1.03 0.63 66.00 1.20 130.00 65.99 0.80 N 0.22 E 3.41 0.83

77.00 0.50 85.00 76.99 0.73 N 0.35 E 2.50 0.81 118.00 0.50 253.00 117.99 0.69 N 0.36 E 0.73 0.77 148.00 0.80 88.00 147.99 0.66 N 0.45 E 1.29 0.77 174.00 0.50 25.00 173.99 0.77 N 0.67 E 0.84 0.95 210.00 1.00 25.00 209.98 1.20 N 0.87 E 0.42 1.42

220.00 1.50 10.00 219.98 1.41 N 0.93 E 1.78 1.64 235.00 1.20 10.00 234.98 1.75 N 0.99 E 0.60 1.99 271.00 2.00 7.00 270.96 2.75 N 1.14 E 0.67 2.97 298.00 2.12 13.00 297.95 3.70 N 1.31 E 0.27 3.93 310.00 2.20 349.00 309.94 4.14 N 1.31 E 2.25 4.34

319.00 2.40 355.00 318.93 4.50 N 1.26 E 1.04 4.66 329.00 2.20 355.00 328.92 4.90 N 1.23 E 0.60 5.03 338.00 2.00 358.00 337.92 5.23 N 1.21 E 0.76 5.33 367.00 3.60 339.00 366.88 6.59 N 0.86 E 1.89 6.49 376.00 3.20 340.00 375.87 7.09 N 0.68 E 1.35 6.90

385.00 3.10 344.00 384.85 7.56 N 0.52 E 0.80 7.29 394.00 3.20 353.00 393.84 8.04 N 0.43 E 1.68 7.71 403.00 3.40 355.00 402.82 8.55 N 0.37 E 0.77 8.18 413.00 5.40 355.00 412.79 9.32 N 0.30 E 6.00 8.87 422.00 5.70 3.00 421.75 10.19 N 0.29 E 2.76 9.69

432.00 4.20 10.00 431.71 11.04 N 0.38 E 4.84 10.52 441.00 2.30 2.30 440.70 11.55 N 0.45 E 6.48 11.02 451.00 1.20 347.00 450.69 11.85 N 0.43 E 3.56 11.30 460.00 1.20 287.00 459.69 11.97 N 0.32 E 4.00 11.38 470.00 1.75 276.00 469.69 12.02 N 0.07 E 1.85 11.33

480.00 2.60 279.00 479.68 12.07 N 0.31 W 2.57 11.26 489.00 3.75 275.00 488.67 12.13 N 0.80 W 3.90 11.14 499.00 5.00 287.00 498.64 12.28 N 1.55 W 4.63 11.04 506.00 6.10 292.00 505.61 12.51 N 2.18 W 5.15 11.04 517.00 5.70 289.00 516.55 12.91 N 3.24 W 1.38 11.06

526.00 6.20 297.00 525.50 13.27 N 4.10 W 3.22 11.11

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 19.73 degrees. Calculation uses the minimum curvature method.

PAGE NO. 19

GENOIL

SURVEY LISTING Page 2 GENOIL ET AL ST. LEONARD #1 .NO#1

Your ref : CORRECTION RUN ST. LEONARD.QUEBEC

Last revised : 24•Dec•96

Targets associated with this wellpath

Target name

Position T.U.D. Local rectangular coords. Date revised

TARGET

not specified 3927.30 169.92N 60.46E 4•Dec•96

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVOs are from wellhead.

Vertical section is from wellhead on azimuth 19.73 degrees. Calculation uses the minimum curvature method.

PAGE NO.20

GENOIL GENOIL ET AL ST. LEONARD #1

NO#1 ST. LEONARD

QUEBEC

SURVEY LISTING

Well name :

Your ref : ORIGINAL SURVEYS Our ref : svy3017

Date printed : 24-Jun-97 Date created : 4-Dec-96 Last revised : 23-May-97

Field is centred on 0.000,0.000,0.000

Structure is centred on n46 4 32.840,w72 23 13.920,0.000

PAGE NO. 21

GENOIL SURVEY LISTING Page 1 GENOIL ET AL ST. LEONARD #1 ,N0#1 Your ref : ORIGINAL SURVEYS

ST. LEONARD, QUEBEC Last revised : 23-May-97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 0.00 21.00 1.00 0.00 21.00 0.18 N 0.00 E 1.43 0.18 30.00 1.00 0.00 30.00 0.34 N 0.00 E 0.00 0.34 45.00 1.50 6.00 44.99 0.67 N 0.02 E 1.03 0.66 66.00 1.20 130.00 65.99 0.80 N 0.22 E 3.41 0.76

77.00 0.50 85.00 76.99 0.73 N 0.35 E 2.50 0.68 118.00 0.50 253.00 117.99 0.69 N 0.36 E 0.73 0.64 148.00 0.80 88.00 147.99 0.66 N 0.45 E 1.29 0.60 174.00 0.50 25.00 173.99 0.77 N 0.67 E 0.84 0.67 210.00 1.00 25.00 209.98 1.20 N 0.87 E 0.42 1.07

220.00 1.50 10.00 219.98 1.41 N 0.93 E 1.78 1.27 235.00 1.20 10.00 234.98 1.75 N 0.99 E 0.60 1.61 271.00 2.00 7.00 270.96 2.75 N 1.14 E 0.67 2.57 298.00 2.10 13.00 297.95 3.70 N 1.31 E 0.26 3.49 310.00 2.20 349.00 309.94 4.14 N 1.31 E 2.25 3.93

319.00 2.40 355.00 318.93 4.50 N 1.26 E 1.04 4.29 329.00 2.20 355.00 328.92 4.90 N 1.23 E 0.60 4.69 338.00 2.00 358.00 337.92 5.22 N 1.21 E 0.76 5.02 367.00 3.60 339.00 366.88 6.58 N 0.86 E 1.89 6.41 376.00 3.20 340.00 375.87 7.08 N 0.67 E 1.35 6.93

385.00 3.10 344.00 384.85 7.55 N 0.52 E 0.80 7.41 394.00 3.20 353.00 393.84 8.03 N 0.42 E 1.68 7.91 403.00 3.80 356.10 402.82 8.58 N 0.37 E 2.10 8.45 413.00 4.40 356.80 412.80 9.29 N 0.33 E 1.81 9.17 422.00 4.30 2.30 421.77 9.98 N 0.32 E 1.43 9.84

432.00 3.40 5.60 431.75 10.65 N 0.37 E 2.78 10.50 441.00 2.30 9.00 440.74 11.09 N 0.42 E 3.71 10.93 451.00 1.30 341.00 450.73 11.39 N 0.42 E 3.91 11.24 460.00 1.00 306.80 459.73 11.54 N 0.32 E 2.45 11.39 467.00 1.30 296.00 466.73 11.61 N 0.20 E 1.58 11.48

479.00 0.90 289.20 478.73 11.70 N 0.01 W 1.05 11.60 489.00 0.31 263.20 488.73 11.72 N 0.11 W 1.91 11.63 501.00 0.30 177.80 500.73 11.69 N 0.14 W 1.03 11.60 582.00 1.30 324.00 581.72 12.22 N 0.68 W 0.58 12.20 590.00 1.30 324.50 589.72 12.37 N 0.78 W 0.04 12.36

630.00 1.75 338.00 629.70 13.30 N 1.27 W 0.43 13.35 658.00 1.90 343.00 657.69 14.14 N 1.57 W 0.23 14.23 667.00 1.75 344.00 666.68 14.42 N 1.65 W 0.51 14.51 686.00 1.75 343.00 685.68 14.97 N 1.82 W 0.05 15.08 715.00 2.00 337.00 714.66 15.86 N 2.14 W 0.33 16.01

735.00 1.80 338.00 734.65 16.48 N 2.40 W 0.30 16.65 790.00 1.75 339.00 789.62 18.06 N 3.02 W 0.03 18.30 800.00 1.40 345.00 799.62 18.32 N 3.11 W 1.16 18.57 863.00 1.50 353.00 862.60 19.88 N 3.41 W 0.11 20.16 927.00 1.75 348.00 926.57 21.67 N 3.71 W 0.13 21.97

1040.00 2.25 353.00 1039.50 25.56 N 4.34 W 0.14 25.91 1163.00 2.00 349.00 1162.42 30.06 N 5.05 W 0.07 30.47 1314.00 1.75 349.00 1313.34 34.91 N 5.99 W 0.05 35.40 1496.00 1.30 353.00 1495.27 39.69 N 6.77 W 0.08 40.24 1600.00 0.75 11.00 1599.26 41.53 N 6.78 W 0.18 42.06

1677.00 1.35 345.00 1676.24 42.90 N 6.92 W 0.29 43.44 1773.00 1.35 13.00 1772.22 45.09 N 6.96 W 0.20 45.62 1820.00 1.50 28.00 1819.20 46.18 N 6.55 W 0.26 46.64

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 352.36 degrees. Calculation uses the minimum curvature method.

PAGE NO. 22

GENOIL SURVEY LISTING Page 2 GENOIL ET AL ST. LEONARD #1 ,N0#1 Your ref : ORIGINAL SURVEYS

ST. LEONARD.QUEBEC Last revised : 23-May-97

Measured Depth

Inclin. Azimuth Degrees Degrees

True Vert. Depth

RECTANGULAR Dogleg C O O R D I N A T E S Deg/30m

Vert Sect

1971.00 1.75 313.00 1970.16 49.49 N 7.31 W 0.40 50.03 2097.00 1.50 313.00 2096.11 51.93 N 9.92 W 0.06 52.79 2179.00 1.10 8.00 2178.09 53.44 N 10.60 W 0.46 54.38 2283.00 0.40 318.00 2282.08 54.70 N 10.70 W 0.26 55.64 2385.00 0.50 33.00 2384.08 55.34 N 10.70 W 0.16 56.27

2499.00 0.75 48.00 2498.07 56.26 N 9.87 W 0.08 57.07 2612.00 1.25 38.00 2611.05 57.72 N 8.56 W 0.14 58.35 2678.00 1.25 73.00 2677.04 58.50 N 7.43 W 0.34 58.97

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 352.36 degrees. Calculation uses the minimum curvature method.

PAGE NO. 23

GENOIL SURVEY LISTING Page 3 GENOIL ET AL ST. LEONARD #1 ,NO#1 Your ref : ORIGINAL SURVEYS

ST. LEONARD.QUEBEC Last revised : 23•May-97

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 352.36 degrees. Calculation uses the minimum curvature method.

PAGE NO. 24

GENOIL GENOIL ET AL ST. LEONARD #1

NO#1 ST. LEONARD

QUEBEC

SURVEY LISTING

Well name :

Your ref : SIDETRACK #1 Our ref : svy3160

Date printed : 24•Jun-97 Date created : 19-Dec•96 Last revised : 15-Apr-97

Field is centred on 0.000,0.000.0.000

Structure is centred on n46 4 32.840,w72 23 13.920.0.000

PAGE NO. 25

GENOIL SURVEY LISTING Page 1 GENOIL ET AL ST. LEONARD #1 ,NO#1 Your ref : SIDETRACK #1

ST. LEONARD.QUEBEC Last revised : 15-Apr-97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 0.00 21.00 1.00 0.00 21.00 0.18 N 0.00 E 1.43 0.17 30.00 1.00 0.00 30.00 0.34 N 0.00 E 0.00 0.32 45.00 1.50 6.00 44.99 0.67 N 0.02 E 1.03 0.63 66.00 1.20 130.00 65.99 0.80 N 0.22 E 3.41 0.83

77.00 0.50 85.00 76.99 0.73 N 0.35 E 2.50 0.81 118.00 0.50 253.00 117.99 0.69 N 0.36 E 0.73 0.77 148.00 0.80 88.00 147.99 0.66 N 0.45 E 1.29 0.77 174.00 0.50 25.00 173.99 0.77 N 0.67 E 0.84 0.95 210.00 1.00 25.00 209.98 1.20 N 0.87 E 0.42 1.42

220.00 1.50 10.00 219.98 1.41 N 0.93 E 1.78 1.64 235.00 1.20 10.00 234.98 1.75 N 0.99 E 0.60 1.99 271.00 2.00 7.00 270.96 2.75 N 1.14 E 0.67 2.97 298.00 2.12 13.00 297.95 3.70 N 1.31 E 0.27 3.93 310.00 2.20 349.00 309.94 4.14 N 1.31 E 2.25 4.34

319.00 2.40 355.00 318.93 4.50 N 1.26 E 1.04 4.66 329.00 2.20 355.00 328.92 4.90 N 1.23 E 0.60 5.03 338.00 2.00 358.00 337.92 5.23 N 1.21 E 0.76 5.33 367.00 3.60 339.00 366.88 6.59 N 0.86 E 1.89 6.49 376.00 3.20 340.00 375.87 7.09 N 0.68 E 1.35 6.90

385.00 3.10 344.00 384.85 7.56 N 0.52 E 0.80 7.29 394.00 3.20 353.00 393.84 8.04 N 0.43 E 1.68 7.71 403.00 3.80 356.10 402.82 8.59 N 0.37 E 2.10 8.21 413.00 4.40 356.80 412.80 9.30 N 0.33 E 1.81 8.87 422.00 4.30 2.30 421.77 9.98 N 0.32 E 1.43 9.51

432.00 3.40 5.60 431.75 10.65 N 0.37 E 2.78 10.15 441.00 2.30 9.00 440.74 11.10 N 0.42 E 3.71 10.59 451.00 1.30 341.00 450.73 11.40 N 0.42 E 3.91 10.87 460.00 1.00 306.80 459.73 11.54 N 0.32 E 2.45 10.98 467.00 1.30 296.00 466.73 11.62 N 0.20 E 1.58 11.00

479.00 0.90 289.20 478.73 11.71 N 0.01 W 1.05 11.02 489.00 0.31 263.20 488.72 11.73 N 0.11 W 1.91 11.00 501.00 0.30 177.80 500.72 11.69 N 0.14 W 1.03 10.96 582.00 1.30 324.00 581.72 12.23 N 0.67 W 0.58 11.28 590.00 1.30 324.50 589.72 12.37 N 0.78 W 0.04 11.38

630.00 1.75 338.00 629.70 13.31 N 1.27 W 0.43 12.10 658.00 1.90 343.00 657.69 14.15 N 1.57 W 0.23 12.79 667.00 1.75 344.00 666.68 14.42 N 1.65 W 0.51 13.02 686.00 1.75 343.00 685.68 14.98 N 1.81 W 0.05 13.49 715.00 2.00 337.00 714.66 15.87 N 2.14 W 0.33 14.21

735.00 1.80 338.00 734.65 16.48 N 2.40 W 0.30 14.71 790.00 1.75 339.00 789.62 18.07 N 3.02 W 0.03 15.99 800.00 1.40 345.00 799.62 18.33 N 3.11 W 1.16 16.20 863.00 1.50 353.00 862.60 19.89 N 3.41 W 0.11 17.57 927.00 1.75 348.00 926.57 21.68 N 3.71 W 0.13 19.15

1040.00 2.25 353.00 1039.50 25.57 N 4.34 W 0.14 22.60 1163.00 2.00 349.00 1162.42 30.07 N 5.04 W 0.07 26.60 1314.00 1.75 349.00 1313.34 34.92 N 5.99 W 0.05 30.85 1496.00 1.30 353.00 1495.27 39.70 N 6.77 W 0.08 35.08 1600.00 0.75 11.00 1599.26 41.54 N 6.78 W 0.18 36.81

1677.00 1.35 345.00 1676.24 42.91 N 6.92 W 0.29 38.05 1773.00 1.35 13.00 1772.22 45.10 N 6.96 W 0.20 40.10 1820.00 1.50 28.00 1819.20 46.18 N 6.55 W 0.26 41.26

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 19.73 degrees. Calculation uses the minimum curvature method.

PAGE NO. 26

GENOIL SURVEY LISTING Page 2 GENOIL ET AL ST. LEONARD #1 .NO#1 Your ref : SIDETRACK #1

ST. LEONARD,QUEBEC Last revised : 15-Apr-97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

1971.00 1.75 313.00 1970.16 49.50 N 7.31 W 0.40 44.13 2097.00 1.50 313.00 2096.11 51.94 N 9.92 W 0.06 45.54 2179.00 1.10 8.00 2178.09 53.45 N 10.59 W 0.46 46.73 2283.00 0.40 318.00 2282.08 54.71 N 10.70 W 0.26 47.88 2348.00 0.75 73.00 2347.08 55.00 N 10.44 W 0.46 48.25

2376.00 0.50 355.00 2375.08 55.18 N 10.28 W 0.87 48.47 2405.00 1.00 25.00 2404.07 55.53 N 10.18 W 0.64 48.83 2436.00 0.50 65.00 2435.07 55.83 N 9.95 W 0.67 49.20 2476.00 2.50 105.00 2475.06 55.68 N 8.94 W 1.61 49.39 2489.00 4.65 86.00 2488.03 55.65 N 8.14 W 5.60 49.63

2499.00 4.35 85.00 2498.00 55.71 N 7.36 W 0.93 49.95 2526.00 3.20 60.00 2524.94 56.17 N 5.69 W 2.20 50.95 2576.00 1.50 21.00 2574.90 57.48 N 4.25 W 1.35 52.67

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 19.73 degrees. Calculation uses the minimum curvature method. PAGE NO. 27

GENOIL GENOIL ET AL ST. LEONARD #1 .NO#1

ST. LEONARD.OUEBEC

SURVEY LISTING Page 3 Your ref : SIDETRACK #1

Last revised : 15-Apr-97

Targets associated with this wellpath

Target name

Position T.V.D. Local rectangular coords. Date revised

TARGET

not specified 3927.30 169.92N 60.46E 4-Dec•96

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 19.73 degrees. Calculation uses the minimum curvature method.

PAGE NO. 28

GENOIL GENOIL ET AL ST. LEONARD #1

NO#1 ST. LEONARD

QUEBEC

SURVEY LISTING

Well name :

Your ref : SIDETRACK #2 Our ref : svy3185

Date printed : 24-Jun-97 Date created : 24-Dec-96 Last revised : 23-May-97

Field is centred on 0.000.0.000.0.000

Structure is centred on n46 4 32.840.w72 23 13.920,0.000

PAGE NO. 29

GENOIL SURVEY LISTING Page 1 GENOIL ET AL ST. LEONARD #1 ,N0#1 Your ref : SIDETRACK #2

ST. LEONARD.QUEBEC Last revised : 23-May-97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

0.00 0.00 0.00 0.00 0.00 N 0.00 E 0.00 0.00 21.00 1.00 0.00 21.00 0.18 N 0.00 E 1.43 0.17 30.00 1.00 0.00 30.00 0.34 N 0.00 E 0.00 0.31 45.00 1.50 6.00 44.99 0.67 N 0.02 E 1.03 0.60 66.00 1.20 130.00 65.99 0.80 N 0.22 E 3.41 0.65

77.00 0.50 85.00 76.99 0.73 N 0.35 E 2.50 0.53 118.00 0.50 253.00 117.99 0.69 N 0.36 E 0.73 0.49 148.00 0.80 88.00 147.99 0.66 N 0.45 E 1.29 0.43 174.00 0.50 25.00 173.99 0.77 N 0.67 E 0.84 0.44 210.00 1.00 25.00 209.98 1.20 N 0.87 E 0.42 0.76

220.00 1.50 10.00 219.98 1.41 N 0.93 E 1.78 0.92 235.00 1.20 10.00 234.98 1.75 N 0.99 E 0.60 1.22 271.00 2.00 7.00 270.96 2.75 N 1.14 E 0.67 2.08 298.00 2.12 13.00 297.95 3.70 N 1.31 E 0.27 2.89 310.00 2.20 349.00 309.94 4.14 N 1.31 E 2.25 3.29

319.00 2.40 355.00 318.93 4.50 N 1.26 E 1.04 3.64 329.00 2.20 355.00 328.92 4.90 N 1.23 E 0.60 4.02 338.00 2.00 358.00 337.92 5.23 N 1.21 E 0.76 4.33 367.00 3.60 339.00 366.88 6.59 N 0.86 E 1.89 5.72 376.00 3.20 340.00 375.87 7.09 N 0.68 E 1.35 6.25

385.00 3.10 344.00 384.85 7.56 N 0.52 E 0.80 6.74 394.00 3.20 353.00 393.84 8.04 N 0.43 E 1.68 7.22 403.00 3.80 356.10 402.82 8.59 N 0.37 E 2.10 7.75 413.00 4.40 356.80 412.80 9.30 N 0.33 E 1.81 8.42 422.00 4.30 2.30 421.77 9.98 N 0.32 E 1.43 9.05

432.00 3.40 5.60 431.75 10.65 N 0.37 E 2.78 9.65 441.00 2.30 9.00 440.74 11.10 N 0.42 E 3.71 10.03 451.00 1.30 341.00 450.73 11.40 N 0.42 E 3.91 10.32 460.00 1.00 306.80 459.73 11.54 N 0.32 E 2.45 10.49 467.00 1.30 296.00 466.73 11.62 N 0.20 E 1.58 10.60

479.00 0.90 289.20 478.73 11.71 N 0.01 W 1.05 10.77 489.00 0.30 263.20 488.72 11.73 N 0.11 W 1.93 10.83 501.00 0.30 177.80 500.72 11.69 N 0.14 W 1.02 10.81 527.00 0.25 185.00 526.72 11.57 N 0.14 W 0.07 10.69 590.00 1.30 358.00 589.72 12.15 N 0.18 W 0.74 11.24

630.00 1.75 328.00 629.71 13.12 N 0.52 W 0.68 12.27 658.00 1.90 343.00 657.69 13.93 N 0.88 W 0.53 13.15 667.00 1.75 343.00 666.69 14.20 N 0.97 W 0.50 13.43 694.00 1.75 343.00 693.68 14.99 N 1.21 W 0.00 14.25 723.00 2.00 343.00 722.66 15.90 N 1.48 W 0.26 15.20

752.00 1.80 348.00 751.64 16.82 N 1.73 W 0.27 16.15 800.00 1.40 345.00 799.62 18.13 N 2.03 W 0.26 17.47 855.00 1.40 353.00 854.61 19.44 N 2.29 W 0.11 18.78 927.00 1.75 348.00 926.58 21.39 N 2.63 W 0.16 20.70 1040.00 2.25 353.00 1039.51 25.28 N 3.26 W 0.14 24.52

1163.00 2.00 349.00 1162.43 29.79 N 3.96 W 0.07 28.94 1314.00 1.75 349.00 1313.35 34.64 N 4.90 W 0.05 33.77 1496.00 1.30 353.00 1495.28 39.41 N 5.68 W 0.08 38.47 1600.00 0.75 353.00 1599.26 41.26 N 5.91 W 0.16 40.26 1677.00 1.35 345.00 1676.25 42.64 N 6.21 W 0.24 41.64

1773.00 1.35 13.00 1772.23 44.83 N 6.24 W 0.20 43.67 1820.00 1.50 28.00 1819.21 45.91 N 5.83 W 0.26 44.51 1971.00 1.75 313.00 1970.17 49.23 N 6.59 W 0.40 47.85

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 336.84 degrees. Calculation uses the minimum curvature method.

PAGE NO. 30

GENOIL SURVEY LISTING Page 2 GENOIL ET AL ST. LEONARD #1 ,NO#1 Your ref : SIDETRACK #2

ST. LEONARD.QUEBEC Last revised : 23•May•97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

2097.00 1.50 313.00 2096.11 51.67 N 9.20 W 0.06 51.12 2179.00 1.10 8.00 2178.10 53.18 N 9.88 W 0.46 52.78 2283.00 0.40 318.00 2282.09 54.44 N 9.98 W 0.26 53.98 2348.00 0.75 73.00 2347.09 54.73 N 9.73 W 0.46 54.14 2356.33 1.10 115.20 2355.41 54.71 N 9.60 W 2.67 54.08

2365.82 0.70 95.50 2364.90 54.67 N 9.46 W 1.58 53.98 2375.31 0.30 339.90 2374.39 54.68 N 9.41 W 2.76 53.98 2384.47 0.30 316.60 2383.55 54.72 N 9.44 W 0.40 54.03 2393.96 0.60 114.10 2393.04 54.72 N 9.41 W 2.80 54.01 2403.45 1.40 111.90 2402.53 54.66 N 9.26 W 2.53 53.89

2413.03 1.70 107.40 2412.11 54.57 N 9.01 W 1.01 53.72 2422.61 1.90 97.30 2421.68 54.51 N 8.72 W 1.17 53.55 2431.55 1.90 83.20 2430.62 54.51 N 8.43 W 1.56 53.43 2440.56 2.10 63.40 2439.62 54.60 N 8.13 W 2.38 53.40 2450.16 2.20 55.10 2449.22 54.78 N 7.82 W 1.02 53.45

2459.18 2.20 64.40 2458.23 54.96 N 7.52 W 1.19 53.49 2468.79 2.60 69.10 2467.83 55.12 N 7.15 W 1.39 53.49 2478.11 3.20 82.90 2477.14 55.22 N 6.70 W 2.95 53.41 2487.68 3.90 87.40 2486.69 55.27 N 6.11 W 2.36 53.22 2497.18 5.00 95.30 2496.16 55.25 N 5.37 W 3.97 52.91

2508.27 6.00 93.90 2507.20 55.16 N 4.31 W 2.73 52.41 2517.11 6.80 81.60 2515.99 55.21 N 3.33 W 5.37 52.07 2526.72 8.00 68.70 2525.52 55.53 N 2.15 W 6.38 51.90 2536.20 9.80 56.50 2534.88 56.22 N 0.86 W 8.22 52.03 2545.78 10.80 46.40 2544.31 57.29 N 0.47 E 6.45 52.49

2555.38 11.30 38.30 2553.73 58.65 N 1.70 E 5.09 53.25 2564.59 11.40 32.10 2562.76 60.13 N 2.75 E 3.99 54.20 2574.08 11.80 26.90 2572.06 61.79 N 3.68 E 3.54 55.36 2583.39 12.30 22.90 2581.16 63.55 N 4.50 E 3.14 56.66 2602.25 13.50 16.80 2599.55 67.51 N 5.92 E 2.88 59.74

2611.82 14.30 13.10 2608.84 69.73 N 6.51 E 3.75 61.55 2630.75 16.70 4.60 2627.08 74.72 N 7.26 E 5.23 65.84 2639.73 16.40 1.90 2635.69 77.27 N 7.40 E 2.76 68.13 2648.81 16.50 358.30 2644.40 79.84 N 7.41 E 3.38 70.49 2658.41 16.70 354.80 2653.60 82.58 N 7.24 E 3.19 73.07

2667.44 16.90 351.10 2662.24 85.17 N 6.92 E 3.61 75.58 2677.04 16.60 348.60 2671.43 87.89 N 6.43 E 2.44 78.28 2686.41 16.00 344.60 2680.43 90.45 N 5.83 E 4.07 80.87 2696.08 15.60 341.20 2689.73 92.96 N 5.05 E 3.13 83.48 2698.00 15.30 340.87 2691.58 93.45 N 4.89 E 4.93 83.99 EXTRAPOLATION

2704.66 14.25 339.60 2698.02 95.04 N 4.31 E 4.93 85.69 2713.92 14.10 337.90 2707.00 97.16 N 3.49 E 1.43 87.95 2723.42 15.40 337.00 2716.19 99.39 N 2.56 E 4.17 90.37 2732.82 16.80 335.50 2725.22 101.78 N 1.51 E 4.66 92.98 2742.47 17.50 334.50 2734.44 104.35 N 0.31 E 2.36 95.82

2752.04 18.20 332.50 2743.55 106.98 N 1.00 W 2.92 98.75 2761.76 18.40 330.50 2752.78 109.66 N 2.46 W 2.03 101.79 2771.46 17.80 329.00 2762.00 112.26 N 3.97 W 2.35 104.78 2780.89 17.10 328.40 2770.99 114.68 N 5.44 W 2.30 107.58 2790.48 17.20 327.20 2780.16 117.07 N 6.95 W 1.15 110.37

2799.40 17.60 326.30 2788.67 119.30 N 8.41 W 1.62 113.00 2809.00 18.20 325.40 2797.81 121.74 N 10.07 W 2.06 115.89 2818.45 18.10 324.50 2806.78 124.15 N 11.76 W 0.94 118.77

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 336.84 degrees. Calculation uses the minimum curvature method.

PAGE NO. 31

GENOIL SURVEY LISTING Page 3 GENOIL ET AL ST. LEONARD #1 .NO#1 Your ref : SIDETRACK #2

ST. LEONARD.QUEBEC Last revised : 23-May-97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

2828.06 17.80 323.70 2815.93 126.55 N 13.50 W 1.21 121.66 2837.59 17.30 321.70 2825.01 128.84 N 15.24 W 2.47 124.45 2847.20 17.10 320.70 2834.19 131.05 N 17.02 W 1.11 127.19 2856.81 17.10 321.20 2843.38 133.25 N 18.80 W 0.46 129.90 2867.54 17.30 321.20 2853.63 135.72 N 20.78 W 0.56 132.96

2877.08 16.80 321.50 2862.75 137.91 N 22.53 W 1.60 135.65 2886.68 16.40 322.80 2871.95 140.07 N 24.21 W 1.71 138.31 2895.99 16.60 321.90 2880.88 142.16 N 25.83 W 1.05 140.87 2905.61 17.20 321.40 2890.08 144.36 N 27.57 W 1.93 143.57 2914.68 17.60 321.40 2898.74 146.48 N 29.26 W 1.32 146.18

2923.97 17.40 321.40 2907.60 148.66 N 31.00 W 0.65 148.87 2933.58 16.90 321.40 2916.78 150.88 N 32.77 W 1.56 151.60 2943.21 17.00 321.90 2925.99 153.08 N 34.51 W 0.55 154.31 2952.76 17.50 322.70 2935.11 155.32 N 36.24 W 1.74 157.05 2962.31 18.50 324.00 2944.19 157.69 N 38.00 W 3.39 159.92

2971.83 18.20 324.90 2953.23 160.12 N 39.75 W 1.30 162.85 2981.39 17.90 325.70 2962.32 162.56 N 41.43 W 1.22 165.75 2991.04 17.80 326.20 2971.50 165.01 N 43.09 W 0.57 168.66 3000.06 17.90 325.80 2980.09 167.30 N 44.63 W 0.53 171.37 3009.36 18.40 325.60 2988.93 169.70 N 46.27 W 1.63 174.22

3019.72 18.90 325.90 2998.74 172.43 N 48.13 W 1.47 177.47 3029.33 19.00 325.90 3007.83 175.02 N 49.88 W 0.31 180.53 3038.97 18.50 326.00 3016.96 177.59 N 51.62 W 1.56 183.57 3048.55 17.80 325.30 3026.06 180.05 N 53.30 W 2.30 186.50 3057.39 17.70 324.60 3034.48 182.26 N 54.85 W 0.80 189.14

3066.42 17.90 323.60 3043.08 184.49 N 56.47 W 1.21 191.83 3075.97 18.30 322.20 3052.16 186.86 N 58.26 W 1.86 194.71 3085.30 18.70 322.80 3061.01 189.21 N 60.06 W 1.42 197.58 3094.67 19.70 323.50 3069.85 191.67 N 61.90 W 3.29 200.57 3104.28 20.60 324.70 3078.88 194.35 N 63.85 W 3.09 203.80

3113.69 20.20 325.70 3087.70 197.05 N 65.72 W 1.69 207.01 3123.18 19.70 325.10 3096.62 199.71 N 67.56 W 1.71 210.19 3132.78 19.30 324.80 3105.67 202.34 N 69.40 W 1.29 213.32 3142.35 18.50 324.80 3114.72 204.87 N 71.18 W 2.51 216.36 3151.28 17.70 324.60 3123.21 207.13 N 72.79 W 2.70 219.07

3160.87 17.20 324.50 3132.36 209.48 N 74.45 W 1.57 221.88 3170.37 17.00 324.70 3141.44 211.75 N 76.07 W 0.66 224.61 3180.10 17.30 324.70 3150.73 214.09 N 77.73 W 0.92 227.41 3189.51 17.70 324.20 3159.71 216.40 N 79.38 W 1.36 230.18 3199.16 18.30 323.70 3168.89 218.81 N 81.13 W 1.93 233.08

3203.55 18.60 323.50 3173.05 219.93 N 81.95 W 2.10 234.43 3213.10 18.80 323.50 3182.10 222.39 N 83.78 W 0.63 237.41 3222.43 18.20 323.80 3190.94 224.77 N 85.53 W 1.95 240.30 3232.01 18.00 323.90 3200.05 227.17 N 87.29 W 0.63 243.20 3241.58 17.90 324.30 3209.15 229.56 N 89.02 W 0.50 246.07

3250.61 17.80 326.10 3217.75 231.84 N 90.60 W 1.86 248.78 3259.44 17.60 327.00 3226.16 234.08 N 92.08 W 1.15 251.43 3268.84 17.40 327.20 3235.13 236.45 N 93.61 W 0.67 254.21 3278.32 16.70 328.10 3244.19 238.80 N 95.10 W 2.37 256.95 3287.39 16.30 329.10 3252.89 241.00 N 96.44 W 1.62 259.50

3296.97 16.60 329.60 3262.07 243.33 N 97.82 W 1.04 262.19 3306.55 17.00 330.50 3271.25 245.73 N 99.21 W 1.49 264.94 3316.10 17.00 331.00 3280.38 248.17 N 100.57 W 0.46 267.72

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 336.84 degrees. Calculation uses the minimum curvature method.

PAGE NO. 32

GENOIL SURVEY LISTING Page 4 GENOIL ET AL ST. LEONARD #1 ,NO#1 Your ref : SIDETRACK #2

ST. LEONARD.QUEBEC Last revised : 23•May•97

Measured Inclin. Azimuth True Vert. RECTANGULAR Dogleg Vert Depth Degrees Degrees Depth C O O R D I N A T E S Deg/30m Sect

3329.25 16.50 331.70 3292.97 251.49 N 102.39 W 1.23 271.49 3338.25 16.60 331.40 3301.60 253.74 N 103.61 W 0.44 274.04 3347.99 17.20 330.10 3310.92 256.21 N 104.99 W 2.18 276.86 3355.05 17.00 329.00 3317.66 258.00 N 106.04 W 1.62 278.92 3364.57 17.50 328.50 3326.76 260.42 N 107.51 W 1.64 281.71

3374.15 17.40 328.30 3335.90 262.86 N 109.01 W 0.37 284.56 3383.61 16.50 329.00 3344.94 265.22 N 110.45 W 2.93 287.29 3393.23 15.80 329.10 3354.19 267.51 N 111.83 W 2.18 289.94 3402.81 15.60 328.90 3363.41 269.74 N 113.16 W 0.65 292.50 3412.34 16.20 329.30 3372.57 271.98 N 114.50 W 1.92 295.09

3421.92 15.70 329.80 3381.78 274.25 N 115.84 W 1.62 297.70 3431.45 15.00 330.80 3390.97 276.44 N 117.09 W 2.36 300.21 3440.08 14.20 331.10 3399.33 278.34 N 118.14 W 2.79 302.37 3450.64 13.50 331.90 3409.58 280.56 N 119.35 W 2.06 304.89 3460.15 13.00 331.70 3418.84 282.48 N 120.38 W 1.58 307.06

3469.71 12.10 330.30 3428.17 284.30 N 121.39 W 2.98 309.13 3478.25 11.10 327.90 3436.53 285.77 N 122.27 W 3.90 310.83

All data is in metres unless otherwise stated Coordinates are from NO#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 336.84 degrees. Calculation uses the minimum curvature method.

PAGE NO. 33

GENOIL SURVEY LISTING Page 5 GENOIL ET AL ST. LEONARD #1 .NO#1 Your ref : SIDETRACK #2

ST. LEONARD,QUEBEC Last revised : 23-May-97

Comments in wellpath

MD TVD Rectangular Coords. Comment

2698.00 2691.58 93.45 N 4.89 E EXTRAPOLATION

Targets associated with this wellpath

Target name

Position T.V.D. Local rectangular coords. Date revised

TARGET

not specified 3927.30 169.92N 60.46E 4-Dec-96

All data is in metres unless otherwise stated Coordinates are from N0#1 and TVDs are from wellhead.

Vertical section is from wellhead on azimuth 336.84 degrees. Calculation uses the minimum curvature method.

PAGE NO. 34

DEPTH m KB

DEVIATION Degrees

Cr ISSETT RESOURCE CONSULTANTS LTD.

DEVIATION SURVEYS

DEPTH m KB

DEVIATION Degrees

3478 Misrun

3503 Misrun

3503 Misrun

3503 Misrun

3503 Misrun

3484 10 1/2

3513 10 1/8

3542 10 1/8

3560 10 3/4

3569 10 1/8

3579 10

3589 10

3617 10

3630 9 1/2

3648 6 1/4

3668 5 7/8

3687 4 1/4

3727 5 7/8

3794 4

3880 3 3/4

DEPTH m KB

DEVIATION Degrees

4030 7

DEPTH m KB

DEVIATION Degrees

PAGE NO. 35

Cr ISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

Page 1 of 6

WELL

LOCATION

Drill Pipe: Size OD

Size OD

GENOIL et al ST. LEONARD NO. 1

Quebec Lowlands

01

Ralex Inc. CONTRACTOR

RIG NO.

Drill Collars: No. 6 OD

No. 21 OD

No. - OD

No. - OD

DATE & TIME SPUDDED

DATE & TIME RIG RELEASED

November 26, 1996: 2:00 p.m.

June 22, 1997: 12:00 noon

114 kg/m 65.0 Type T.J. 114XH

114 kg/m 24.7 Type T.J. 114XH

229 mm ID 70 mm Type T.J. 177H90

171 mm ID 62 mm Type T.J. 127H90

- mm ID - mm Type T.J.

- mm ID - mm Type T.J.

Depth No.

Metres Hours

Cum.

Hours

of

D.C.s daN RPM

Dull

T

2

2

Cond.

B G Remarks

257 36.25 36.25 16 5-7 000 110 1 I

1/16

-

179 67.50 103.75 16 3-5 000 100/140 3 Pulled for BHA

99 53.00 156.75 16 6 000 100/140 2 1 I Pulled to plug

2

2

4

1

3

3

1

back

34 3.50 160.25 16 5 000 110 1 I Polished cement

1/16

plug

97 52.50 212.75 16 5 000 340 3 Sidetracked and

drilled ahead

105 25.50 238.25 16 7 000 340 6 1/8 Motor run

___al_ 6.00 244.25 16 6 000 340 1

8

1 Motor run.Insert

208 20.75 265.00 16 7 000 110 I Med. hard cutter

165 21.50 286.50 16 7 000 110 8

6

I Med. hard cutter

38 10.00 296.50 16 5 000 90 1/4 Side loading,in-

sert cutters

Wellsite Supervisor Calder H. Creelman

PAGE NO. 36

Out

Bit No. Size Make Type Serial No. Nozzle Sizes m

lA 311 Smith FDGH LF-8663

2A 311 Reed HP13G MM6814

3A 311 Reed MHP13G LC6017

RR1A 311 Smith FDGH LF8663

4A 311 Smith MDSH LH9115

5A 311 Smith MFDSH LH9114

6A 311 Smith MS155 LC7182

HO-1 444 Enterra ROT 25-0142

HO-2 444 Enterra ROT 25-0142

H0-3 444 Enterra ROT 25-0142

11.9x11.9x12.7 257

3 x 12.7 436

3 x 12.7 535

11.9x11.9x12.7 322

3 x 17.5 419

3 x 17.5 524

3 x 17.5 547

3x11.1, 1x25.0 238

3x11.1, 1x25.0 403

3x11.1, 1x25.0 441

J

OBISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

OD 114 kg/m 65.0 Type T.J. 114XH

OD 114 kg/m 24.7 Type T.J. 114XH

6 OD 229 mm ID 70 mm Type T.J. 177H90

21 OD 171 mm ID 62 mm Type T.J. 127H90

- OD - mm ID - mm Type T.J.

- OD - mm ID - mm Type T.J.

No.

Out Cum. of Dull Cond.

Bit No. Size Make Type Serial No. Nozzle Sizes m Metres Hours Hours D.C.s daN RPM T B G Remarks

493 52 6.50 303.00 16 6 500 110 6 6

-

1

1/4

-

I

-

0 0 0.00 0.00 16 n/a 0 - Ran in to jack

485 12 3.50 306.50 16 7 000 90 1 Drilled cement

473 m - 485 m KB

507 22 13.00 319.50 16 2 000 150 1 1

4

3

1

I Kicked off low

speed motor

499 14 5.50 325.00 16 5 000 0 100 9 / 2 I Plugged bullnose

573 66 26.25 351.75 16 5 000 100 2 I -

460 60 7.00 358.75 16 4 000 85 1 I -

467 ____5_ 2.00 360.75 16 6 000 1000 - - - Bullnose plugged

573 0 0.00 360.75 16 2 000 100 2 3 1/16 Clean-out trip,

fished

555 56 21.25 382.00 16 6 000 90 2 7 1 Open hole -499 m

571 16 8.00 390.00 13 6 000 90 2 4 1 Open hole -555 m

Wellsite Supervisor Calder H. Creelman/Mike Kramps

PAGE NO. 37

Ho-4 444 AZ Ralex - 3x19.0, 1x25.0

RR4A 311 Smith MDSH LH9115 -

7A 444 Retip S44 64028 -

8A 311 Smith MFDSH LD7277 3 x 15.9

HO-5 444 Smith - - -

RR8A 311 Smith - L07277 3 x 15.9

UR-1 558 Smith RTU 6310 1 x 30.0

HO-6 444 Enterra RDT 25-0142 3x11.1, 1x25.0

RR4A 311 Smith - LH9115 Open

HO-7 444 Smith - - 3x11.1, 1x25.0

HO-8 444 Smith 3x11.1, 1x25.0

Page 2 of 6

WELL GENOIL et al ST. LEONARD NO. 1 Drill Pipe: Size

LOCATION Quebec Lowlands Size

CONTRACTOR Ralex Inc. Drill Collars: No.

RIG NO. 01 No.

DATE & TIME SPUDDED November 26, 1996: 2:00 p.m. No.

DATE & TIME RIG RELEASED June 22, 1997: 12:00 noon No.

Depth

J

OBISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

Page 3 of 6

WELL GENOIL et al ST. LEONARD NO. 1 Drill Pipe: Size OD 114 kg/m 65.0 Type T.J. 114XH LOCATION Quebec Lowlands Size OD 114 kg/m 24.7 Type T.J. 114XH

CONTRACTOR Ralex Inc. Drill Collars: No. 6 OD 229 mm ID 70 mm Type T.J. 177H90 RIG NO. 01 No. 21 OD 171 mm ID 62 mm Type T.J. 127H90 DATE & TIME SPUDDED November 26, 1996: 2:00 p.m. No. - OD - mm ID - mm Type T.J. DATE & TIME RIG RELEASED June 22, 1997: 12:00 noon No. - OD - mm ID - mm Type T.J. -

Bit No. Size Make Type Serial No. Nozzle Sizes

Depth

Out

m Metres Hours

Cum.

Hours

No.

of

D.C.s daN RPM

Dull Cond.

T B G Remarks

8ARR 311 Smith MFDSH LD7277 3 x 15.9 582 9 3.00 393.00 6 2 000 80 2 3 1 Drilled and

dried out hole

1 311 Smith H4532 K56931 3 x 19.0 1456 757 99.00 492.00 7 1 000 35 20% - Air drilled

2 311 Smith H4532 KJ6995 3 x 19.0 1850 511 55.00 547.00 7 1 000 35 20X - Air drilled

2RR 311 Smith H4532 KJ6995 3 x 19.0 2302 452 51.75 598.75 7 1 000 35 50% - Air drilled

1RR 311 Smith H4532 K56931 3 x 19.0 2698 396 54.75 652.50 7 1 000 35 75% - Air drilled

BARR 311 Smith MFDSH LD7279 Lost in hole

3 215.9 Reed HP13G MM6056 3 x 15.9 2450 108 10.50 10.50 - - - 2 2 1 RO intermediate

4 215.9 Reed HP34A JD1708 3 x 15.9 2515 65 11.25 21.75 - - - 2 2 1 -

5 215.9 Reed HP51H LH9671 3 x 15.9 0 169 10.75 32.50 Ran cement plug to sidetrack. Lost down hole.

4RR Polished cement plug to 2360 0 4.75 37.25 9 - - 2 2 1 -

6 215.9 Reed HP51A DM9154 3 x 15.9 2445 85 34.00 71.25 9 2-5 000 150/170 1 1 1 Rigged up dir-

ectional tools

7 215.9 Smith SUH LF8420 2x15.9, 1x11.1 2514 68 40.25 111.50 11 12-15 000 50/90 6 8 1 Tooth kickout to

6•

Wellsite Supervisor Mike Kramps/Doug Gaboury

PAGE NO. 38

f

CrISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

Page 4 of 6

WELL GENOIL et al ST. LEONARD NO. 1 Drill Pipe: Size OD 114 kg/m 65.0 Type T.J. BN

LOCATION Quebec Lowlands Size OD - kg/m - Type T.J.

CONTRACTOR Ralex Inc. Drill Collars: No. 11 OD 171 mm ID 73 mm Type T.J. 177H90

RIG NO. 01 No. - OD - mm ID - mm Type T.J.

DATE & TIME

DATE & TIME

Bit No.

SPUDDED November 26, 1996: 2:00 p.m.

RIG RELEASED

Size Make

June 22, 1997: 12:00 noon

Type Serial No.

Depth

Out

Nozzle Sizes m

6RR 215.9 Reed HP51A DM9154 2x11.1, lx14.3 2713

8 215.9 STC F2PPR LF3195 2x11.1, 1x14.3 3009

9 215.9 STC F2RD LG4774 2x11.1, lx14.3 3032

10 215.9 STC F3PP LF7298 2x11.1, lx14.3 3125

11 215.9 STC F5 LF4637 2x11.1, lx14.3 3131

12 215.9 Reed HPHA JT6152 2x11.1, 1x14.3 3218

13 215.9 STC F4P LJ6534 3 x 15.9 3343

14 215.9 Reed RP61A BX1527 3 x 15.9 3343

15 215.9 STC MFDBHL LT7510 3 x 28.0 3343

13RR 215.9 Smith F4 LT6534 2x28.0, 1x24.0 2744

16 215.9 Smith FDST LF9060 2x28.0, 1x24.0 3345

17 215.9 Smith F4 LJ7973 2x12.7, 1x14.3 3367

No.

Cum.

Metres Hours Hours

of

D.C.s daN RPM

Dull Cond.

T B G Remarks

199 86.00 197.50 11 12-16 000 50/90 5 6 1 Direct. drilled

296 117.50 315.00 11 12-16 000 50/90 7 8 U 1 mm

23 15.50 330.50 11 12-16 000 50/90 3 3 1 Motor failed

93 46.00 376.50 11 14-16 000 50/90 4 8 1 Lost nose off

cone

6 4.00 380.50 9 12-15 000 70/80 5 3 U 2 mm. Pinched

drilling iron

87 46.75 427.25 11 12-15 000 60/70 8 8 1 Direct. drilled

125 60.25 487.50 11 14-15 000 60/80 3 3 1 Direct. drilled

0 Reamed 11 - - 2 2 U Pipe parted

0 28.50 Reamed 3 2-8 000 40/70 7 6 l0U

1

Reamed to Fish 1

0 Reamed 6 5-10 000 40/70 4 4 Polished Fish 1

2 .25 487.75 9 5-10 000 50/60 3 3 1 Cleaned out

22 9.75 497.50 11 12-15 000 50/60 2 2 U2 Direct. drilled

3345 m (dropped)

No. - OD - mm ID - mm Type T.J. -

No. - OD - mm ID - mm Type T.J. -

Wellsite Supervisor Doug Gaboury

PAGE NO. 39

J

aBISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

Page 5 of 6

WELL GENOIL et al ST. LEONARD NO. 1 Drill Pipe: Size OD 114 kg/m 65.0 Type T.J. BN

LOCATION Quebec Lowlands Size OD - kg/m - Type T.J.

CONTRACTOR Ralex Inc. Drill Collars: No. 11 OD 171 mm ID 73 mm Type T.J. 177H90

RIG NO. 01 No.OD - mm ID - mm Type T.J.

DATE & TIME SPUDDED November 26, 1996: 2:00 p.m. No. - OD - mm ID - mm Type T.J.

DATE & TIME RIG RELEASED June 22, 1997: 12:00 noon No. - OD - mm ID - mm Type T.J. -

No.

Metres Hours

Cum.

Hours

of

D.C.s daN RPM

Dull Cond.

T B G Remarks

0 0.00 0.00 6 5-6 000 50/60 3 3 1 Felt fish

0 0.00 0.00 6 5-6 000 30 - - - Cleaned out

128 42.00 539.50 4 15-30 000 60/90 5 5 1 Direct. drilled

4 .50 540.00 21 3-5 000 40/50 3 3 1 Drill out liner

107 17.00 557.00 21 2-3 000 60/65 4 4 7 Air drilled

1 .50 557.50 219 1-2 000 - New -

7 2.00 559.50 21 2-3 000 60/65 2 1 1 Air drilled

50 10.50 570.00 21 3 000 50/55 2 2 1 Air drilled

10 2.25 572.25 21 2-7 000 45 1 1 1 Hammer

28 8.50 580.75 21 1-2 000 50 8 8 0 Hammer

6 4.00 584.75 21 2-3 000 40/45 2 2 1 Air drilled

187 50.75 635.50 15 1-2 000 20/25 T 4G In Hammer

2 3.25 638.75 15 2 000 25 Damaged Hammer

147 34.75 673.50 15 4-8 000 50/55 8 4 - 4 mm under air

drilling

Bit No. Size Make Type Serial No. Nozzle Sizes

Depth

Out

m

16RR 215.9 STC FDST LF9060 2x12.8, lx24.0 0

18 215.9 STC FDST LF9051 3 x 20.0 3367

19 215.9 STC F4 LF8637 2x17.5, 1x14.3 3495

20 155.6 HC J3XP N34ED 3 x 14.3 3499

21 155.6 STC MF156 LM1396 Open 3606

22 155.6 - H45R452 KJ7083 Hammer bit 3607

23 155.6 STC F37D LJ8474 Open 3614

23RR 155.6 STC F37D LJ8474 Open 3657

22RR 155.6 - H45R452 KJ7083 Hammer 3667

24 155.6 - H45R452 KJ7076 Hammer 3695

23RR 155.6 STC F37D LJ8474 Open 3701

25 155.6 - H45R452 KJ7081 Hammer 3888

26 155.6 - H45R452 KJ7084 Hammer 3890

27 155.6 STC FS LU8473 3 x 12.7 4037

Wellsite Supervisor Doug Gaboury

PAGE NO. 40

J

out to log

Cist.BISSETT RESOURCE CONSULTANTS LTD.

BIT RECORD

Drill Pipe: Size OD 114 kg/m 65.0 Type T.J. BN

Size OD kg/m - Type T.J.

Drill Collars: No. 11 OD 171 mm ID 73 mm Type T.J. 177H90

No. OD mm ID mm Type T.J.

No. OD - mm ID - mm Type T.J.

No. `OD mm ID - mm Type T.J.

Page 6 of 6

WELL

GENOIL et al ST. LEONARD NO. 1

LOCATION Quebec Lowlands

CONTRACTOR

Ralex Inc.

RIG NO. 01

DATE & TIME SPUDDED November 26, 1996: 2:00 p.m.

DATE & TIME RIG RELEASED

June 22, 1997: 12:00 noon

Depth No.

Out Cum. of Dull Cond.

Bit No. Size Make Type Serial No. Nozzle Sizes m Metres Hours Hours D.C.s daN RPM T B G Remarks

23RR 155.6 STC F37D LJ8474 Open 4037 TD - - 15 - - - - - Mudded up,clean

Wellsite Supervisor Doug Gaboury

PAGE NO. 41

SUMMARY OF FLOW PROVER VOLUME CALCULATIONS

Well Name & Number: GENOIL et al ST. LEONARD NO. 1 Location: St. Leonard D'Aston Area and Province: Lowlands. Quebec

Date

Time Depth (m KB)

Formation Name

Flowing Conditions Volume Calculations Superv. Initial

Remarks (Note flowing characteristics and any

fluid recoveries) a.m./p.m. Cumu l Mins.

Pressure (kPa)

Temp. (C)

Orifice (mm)'

Specific Gravity

Prover Factors Flow Rate

(maid) Fp ^,

Ftf Fg Fpv P

97 06 12 06:55 0 4 037 0 - - 0.60 - - - - - - LL Shut in well on pressure buildup. Testing open hole section 3 494 m to 4 037 m KB (FTD) 10:25 210 572 - - 0.60 - - - - - - LL

97 06 12 10:30 0 4 037 579 - 3.18 0.60 1.4312 - - - 680 973 LL Opened well on test through 50.8 mm flow prover.

10:35 5 585 25 3.18 0.60 - - - 686 982 LL Well flowing dry natural gas.

10:40 10 585 25 6.35 0.60 5.8736 - - - 686 4 029 LL Installed 6.35 mm orifice plate.

10:45 15 590 25 6.35 0.60 - - 691 4 059 LL

10:50 20 590 25 6.35 0.60 - - - 691 4 059 LL

10:55 35 590 25 6.35 0.60 - - - 691 4 059 LL

11:00 40 590 25 6.35 0.60 - - - 691 4 059 LL

11:05 45 590 25 6.35 0.60 - - - 691 4 059 LL

11:10 50 585 25 6.35 0.60 - - - 686 4 029 LL

11:15 45 580 25 4.76 0.60 3.2865 - - - 681 2 288 LL Installed 4.76 mm orifice plate.

11:20 50 585 25 4.76 0.60 - - - 686 2 255 LL Well flowing dry natural gas.

11:25 55 590 25 4.76 0.60 - - - 691 2 271 LL

11:30 60 590 25 4.76 0.60 - - - 691 2 271 LL

11:35 65 600 25 4.76 0.60 - - - 701 2 304 LL

NOTE: Select orifice size suitable for minimum 345 kPa or prover calculations will be inaccurate. Allow gas flows to stabilize for at least 5 minutes or maximum shutdown period of 30 minutes or as dictated by hole conditions. Submit a copy of this report weekly to Bissett's office.

PAGE NO. 42

SUMMARY OF FLOW PROVER VOLUME CALCULATIONS

Well Name & Number: GENOIL et al ST. LEONARD NO. 1 Location: St. Leonard D'Aston Area and Province: Lowlands, Quebec

Date

Time Depth (mtt8)

Formation Name

Flowing Conditions Volume Calculations Superv, Initial

Remarks (Note flowing characteristics and any fluid

recoveries) a.m.ip.m. Cumul. Mins.

Pressure (kPa)

Temp. (°C)

Orifice (mm)

Specific Gravity

Prover Factors Flow Rate

(mid) Fp Ftf Fg Fpv P

97 06 12 11:40 70 4 037 610 25 4.76 0.60 - - - 711 2 337 LL

11:45 75 610 25 6.35 0.60 5.8736 - - - 711 4 176 LL Installed 6.35 mm orifice plate.

11:50 80 610 25 6.35 0.60 - - - 711 4 176 LL

11:55 85 608 25 6.35 0.60 - - - 709 4 164 LL

12:00 90 605 25 6.35 0.60 - - - 706 4147 LL

12:05 95 603 25 6.35 0.60 - - - 704 4 135 LL

12:10 100 600 25 6.35 0.60 - - - 701 4117 LL

12:15 105 598 25 6.35 0.60 - -- 699 4 106 LL Well flowing dry natural gas

12:20 110 598 25 6.35 0.60 - -- 699 4106 LL

12:25 115 595 25 6.35 0.60 - -- 696 4 088 LL

12:30 120 590 25 6.35 0.60 - -- 691 4 059 LL

12:35 125 590 25 6.35 0.60 - - - 691 4 059 LL

12:40 130 588 25 6.35 0.60 - - - 289 4 047 LL

12:45 135 586 25 6.35 0.60 - - - 687 4 035 LL

12:50 140 585 25 6.35 0.60 - - - 686 4 029 LL

13:00 150 580 25 6.35 0.60 - - - 681 4 000 LL

13:10 160 578 25 6.35 0.60 -- - 379 3 988 LL

13:20 170 573 25 6.35 0.60 - -- 6.74 3 959 LL

13:30 180 570 25 6.35 0.60 - - - 671 3 941 LL Terminated test at 13:30, 97 06 12,

NOTE Select orifice size suitable for minimum 345 kPa or prover calculations will be inaccurate. Allow gas flows to stabilize for at least 5 minutes or maximum shutdown period of 30 minutes or as dictated by hole conditions. Submit a copy of this report weekly to Bissett's office.

PAGE NO. 43

Well Name & Number:

SUMMARY OF FLOW PROVER VOLUME CALCULATIONS

GENOIL et al ST. LEONARD NO. 1 Location: St. Leonard D'Aston Area and Province: Lowlands. Quebec

Date

Time Depth Im KG)

Formation Name

Flowing Conditions Volume Calculations Supety. Initial

Remarks (Note flowing characteristics and any fluid

recoveNes) a.m.l'" . puma Mins.

Pressure (kPa)

Temp. (°C)

Orifice tmm)

Specific Gravity

Prover Factors Flow Rate

(maid) Fp Ftf Fg Fpv P

97 06 12 06:55 0 4 037 0 LL Shut in well on pressure buildup. Air drilled. Open hole section from 3 494 m to 4 037 m KB (FTD) is open to the wellbore. 07:09 14 0

07:10 15 10

07:11 16 15

07:12 17 18

07:13 18 20

07:14 19 24

07:15 20 28

07:16 21 29

07:17 22 30

07:18 23 33

07:19 24 38

07:20 25 40

07:21 26 42

07:22 27 45

07:23 28 50

07:24 29 53

07:25 30 55

07:30 35 72

NOTE Select orifice size suitable for minimum 345 kPa or prover calculations will be inaccurate. Allow gas flows to stabilize for at least 5 minutes or maximum shutdown period of 30 minutes or as indictated by hole conditions. Submit a copy of this report weekly to Bissett's office.

PAGE NO. 44

Well Name & Number:

SUMMARY OF FLOW PROVER VOLUME CALCULATIONS

GENOIL et al ST. LEONARD NO. 1 Location: St. Leonard D'Aston Area and Province: Lowlands. Quebec

Date

Time

Depth m K8 ( )

Formation Name

Flowing Conditions Volume Calculations

Superv. Initial

Remarks (Note flowing characteristics and any fluid

recoveries} a.mlp.m. Cumul. Mins.

Pressure (kPa)

Temp. ('C)

°rifles (mm)

Specific Gravity

Prover Factors FIow~Rate

(m 2/c1) Fp Ftf Fg Fpv P

97 06 12 07:35 40 4 037 88

07:40 45 100

07:45 50 118

07:50 55 130

07:55 60 142

08:05 70 172

08:15 80 205

08:25 90 255

08:35 100 275

08:45 110 300

08:55 120 325

09:05 130 350

09:15 140 380

09:25 150 420

09:35 160 450

09:45 170 475

09:55 180 500

10:05 190 530

10:15 200 550

10:25 210 572 Open well on test through 50.8 mm flow prover.

NOTE: Select orifice size suitable for minimum 345 kPa or prover calculations will be inaccurate. Allow gas flows to stabilize for at least 5 minutes or maximum shutdown period of 30 minutes or as indictated by hole conditions. Submit a copy of this report weekly to Bissett's office.

PAGE NO. 45

aBISSETT RESOURCE CONSULTANTS LTD.

PLUG-BACK & ABANDONMENT REPORT

WELL NAME GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands

Hole Size 311 311 - - KB Elevation 79.30

Depth 325 347 - - ETD 535.00 m KB and 547.0 m KB

Top of Fluid in Hole Gel Chem

Casing in Hole Size - mm Set At - m Cement - m Plug Back String Drillpipe

Surface Casing - - Service Company Dowell Schlumberger

Production String - - Cons. Bd. Officer None

Plug #1 Plug #2 Plug #3 Plug #4 Plug #5 Plug #6

Date 96 12 05 96 12 18

Interval - Top 360 460

- Bottom 535 547

Formation - Name Quebec City Quebec City

- Depth -

Calipered Hole Size

(Average) - mm

Type of Cement

Number of Tonnes

Additives

m3 of Water Ahead

Displacement - m3 Water

- m3 Mud

Slurry Density - kg/m3

Mixing Times - Start

- Finish

Displacing Times - Start

- Finish

Felt Plug Time

Felt Plug Depth

Surface Casing Cut

311 311

"G" ''G"

26.0 15.0

2.0% CaC12 2.0% CaC12

3.3 7.3

1.0 2.8

1950 2080

00:20 21:15

00:56 21:32

00:57 21:34

01:01 21:45

01:00 22:00

288.5 273.0

m Below Ground. Surface Plug - tonnes. Plate Welded: Yes/No

CASING SALVAGE: Shot Off at m. No. of Joints Recovered -

Remarks Pulled 10 stands to 275 m dry pipe. Circulated bottoms up. Clobbered mud immediately, then

to good mud. Approximately 1.0 m3 preflush on bottoms up.

Wellsite Supervisor Calder H. Creelman

PAGE NO. 46

1

aBISSETT RESOURCE CONSULTANTS LTD.

PLUG-BACK & ABANDONMENT REPORT

WELL NAME GENOIL et al ST. LEONARD NO. 1 LOCATION Quebec Lowlands

Hole Size 311 - - - KB Elevation 79.30

Depth 2698 - - ETD 2698.00 m KB

Top of

Fluid in Hole Gel Chem

Casing in Hole Size - mm Set At - m Cement - m Plug Back String 114 mm drillpipe

Surface Casing 339.7 569.5 Surface Service Company Dowell Schlumberger

Production String 244.5 2340.5 Surface Cons. Bd. Officer None

Plug #1

Plug #2

Plug #3 Plug #4

Plug #5 Plug #6

Date 97 02 08

Interval - Top 2329

- Bottom 2494

Formation - Name Lorraine

- Depth

Calipered Hole Size

(Average) - mm

390

Type of Cement Oilwell "G"

Number of Tonnes 35.0

Additives 0.1% D81 1.0% D65

m3 of Water Ahead 3.0

Displacement - m3 Water 0.2

- m3 Mud 16.0

Slurry Density - kg/m3 2100

Mixing Times - Start 16:00

- Finish 16:54

Displacing Times - Start 16:54

- Finish 17:36

Felt Plug Time 20:30 on 97 02 10

Felt Plug Depth 2308

Surface Casing Cut - m Below Ground. Surface Plug tonnes. Plate Welded: Yes/No

CASING SALVAGE: Shot Off at - m. No. of Joints Recovered

Remarks -

Wellsite Supervisor Mike Kramps/Doug Gaboury

PAGE NO. 47

LOCATION Quebec Lowlands

KB Elevation 79.30

ETD 2684.00 m KB

Fluid in Hole Gel Chem

GENOIL et al ST. LEONARD NO. 1

Top of

215.9

2684

WELL NAME

Hole Size

Depth

Date

Interval - Top

- Bottom

Formation - Name

- Depth

Calipered Hole Size

(Average) - mm

J

Plug #1

Plug #2

Plug #3 Plug #4

Plug #5 Plug #6

97 03 01

2340.5

2684

Lorraine

2684

n/a

155.6

4037

GENOIL et al ST. LEONARD NO. 1 WELL NAME

Hole Size

Depth

LOCATION Quebec Lowlands

KB Elevation 79.30

ETD 4037.00 m KB

CI BISSETT RESOURCE CONSULTANTS LTD.

PLUG-BACK & ABANDONMENT REPORT

Top of Fluid in Hole Gel Chem

Casing in Hole Size - mm Set At - m Cement - m Plug Back String Drillpipe

Surface Casing 339.7 569.5 Surface Service Company Dowell Schlumberger

Drlg. Liner String 177.8 3494.0 - Cons. Bd. Officer None

Date

Plug #1

97 06 18

Plug #2

97 06 19

Plug #3

96 06 19

Plug

97 06

#4

20

Plug #5 Plug #6

97 06 21

Interval - Top 3930 3444 2175 600 10

- Bottom 4037 3544 2275 650 19

Formation - Name Potsdam Beauharnois -

- Depth n/a n/a n/a n/a n/a

Calipered Hole Size

(Average) - mm n/a n/a n/a n/a n/a

Type of Cement "G" "G” .G. “G“ "G,'

Number of Tonnes 4.80 5.30 4.60 3.70 0.50

Additives (1) (1) (2) (3) 1.0% CaC12

m3 of Water Ahead 2.30 1.00 2.40 2.30 1.80

Displacement - m3 Water 0.26 0.26 0.26 0.26 0.10

- m3 Mud 22.64 18.04 9.30 1.54 0.00

Slurry Density - kg/m3 1900 1900 1900 1900 1900

Mixing Times - Start 18:41 08:48 23:13 14:21 00:56

- Finish 18:48 08:55 23:19 14:25 00:59

Displacing Times - Start 18:48 08:56 23:20 14:29 00:59

- Finish 19:18 09:18 23:34 14:30 01:01

Felt Plug Time 07:20 21:20 12:00 22:40 -

Felt Plug Depth 3931 3420 2165 600 -

Surface Casing Cut 1.50 m Below Ground. Surface Plug No. 5 tonnes. Plate Welded: Yes/X

CASING SALVAGE: Shot Off at n/a m. No. of Joints Recovered None

Remarks (1) 00.7% D16 + 0.5% D65 + 9L/tonne D81. (2) 0.5% D65 + 2.0 L/tonne D81.

(3) 1.0% CaC12 + 0.5% D65. Welded steel plate over 244.5 mm OD casing and 339.7 mm OD casing.

Wellsite Supervisor Doug Gaboury

PAGE NO. 49

aBISSETT RESOURCE CONSULTANTS LTD.

LOGGING RECORD

Type (Abbreviate) Date Depth Logged Run

No. Remarks From To

Phasor-Induction 97 02 07 2472.0 569.7 01 Dowell Schlumberger

BHCSL 97 02 07 2460.0 569.7 01 -

Multi-finger caliper - 2285.0 6.0 02 SOC, casing inspection

DISFL 97 06 17 4028.0 3489.0 02 Dowell Schlumberger

DSI 97 06 17 4008.0 2450.0 02 -

CNL-LDT 97 06 17 4036.0 2981.0 02 -

Sidewall Core 97 06 17 2 at 3972.0 02 -

2 at 3971.0

2 at 3970.0

2 at 3969.0

1 at 3968.0

PAGE NO. 50

Wellsite Supervisor Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

SURPLUS EQUIPMENT REPORT

Well GENOIL et al ST. LEONARD NO. 1 Date 97/12/2 Rig No. 01

Quantity Description (1) Length, m Cond.(2)

14 Joints of 244.5 mm 79.6 kg/m N80 RGE 3 LT&C 8RD new 142.70 - casing length

Returned for credit to Summit Tubulars Corporation as per instruction of Bruce Bierwagon on 97 02 20.

6 Joints of 344.0 mm 90.8 kg/m K55 RGE 3 ST&C 8RD casing 11.64 A 11.58 A 11.65 A 12.25 A 13.97 A 13.18 A

Returned to Summit Tubulars Corporation.

1 McEvoy 346.1 mm x 339.7 mm 21 000 kPa S.O. casing - C bowl with Dutchman

1 McEvoy 346.1 mm 21 000 kPa x 27.94 mm 35 000 kPa "5-11" casing spool

Returned two above items to Cooper Cameron in Edmonton.

(1) List all equipment whether Rental or Company property. Provide complete descrip- tion, date shipped from wellsite and location of surplus Company equipment.

Contractor Ressource Naturelle Ralex Inc.

(2) Conditions: A. New Condition B. Good Useable Second Hand C. Fair Second Hand - Needs

Repairing D. No Longer Useable for

Original Purpose E. Junk

PAGE NO. 51

1

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP -1 °C ROAD Good DATE 96 09 24

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-01

CONTRACTOR Claude Morin Construction STATUS Preparing location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Excavator 10.00 $60 $600

D3 Tractor 10.00 50 500

2 - Tandem Trucks 20.00 45 900 Mobilization 800 GST/QST - 400 Supervision 2.0 days - 2 800

MATERIALS USED:

TOTAL $6 000

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Surveyors previously reflagged access road and location. Conducted preassessment survey. Moved on

equipment. Started stripping and piling topsoil on southwest side of location. Location about 35% stripped. Moved on water well drillers. Started drilling water well. Hit bed rock at 8.0 m below GL. Drilling. Shut down for the night.

Estimated Cpsts: Daily $ 6 000 Cumulative $ * Supervisor: Calder Creelman

*Cumulative cost will be reported on day number PS-02. Page No. 01

J

BISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT

WEATHER Light rain TEMP 9 °C ROAD Good DATE 96 09 25

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-02

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Excavator 10.00 $68.40 $684

D3 Tractor 10.00 57.00 570

2 - Tandem Trucks 20.00 51.30 1 026

Water Well 4 788

Rathole/Mouse Hole 5 578 Supervision 1.0 day 925

MATERIALS USED:

TOTAL $13 571

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued stripping and piling topsoil along southwest portion of the wellsite. Topsoil is 20.5 cm to 40.5 cm in depth. About 60% complete. Finished drilling water well. Ran 168.3 mm OD casing to 67.1 m GL. Tested water well at 115 L/min. Dug and ran liners in rathole and mouse hole. Shut down for the night.

Estimated Costs: Daily $ 13 571 Cumulative $ 106 687 Supervisor: Calder Creelman

Page No. 02

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 8 °C ROAD Good DATE 96 09 26

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-03

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Excavator 10.00 $68.40 $684 D3 Tractor 10.00 57.00 570 2 - Tandem Gravel Trucks 20.00 51.30 1 026 Supervision 1.0 day 1 800

MATERIALS USED:

TOTAL $4 080

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued stripping and piling topsoil along southwest portion of wellsite. About 85%

complete stripping. Dug 608 mm hole to 9.0 m GL. Ran 608 mm OD liner to 9.0 m GL. Shut down for the night.

Correction to Day No. PS-02: Water well TD = 62.0 m GL. Ran 168.3 mm OD casing to 11.0 m GL.

Estimated Costs: Daily $ 4 080 Cumulative $ 110 767 Supervisor: Calder Creelman

Page No. 03

J

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

MATERIALS USED:

WEATHER Clear TEMP 8 °C ROAD Good DATE 96 09 27 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-04

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 10.00 $68.40 $684 D3 Tractor 10.00 57.00 570 2 - Tandem Gravel Trucks 20.00 51.30 1 026 Resident Manager/Supervision 2.0 days 1 800

TOTAL $4 080

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Completed stripping and piling topsoil along southwest portion of the wellsite.

Moved excavator to sand pit. Rathole rig dug 584 mm hole to 10.5 m GL. Drove 610 mm OD liner to 9.5 m GL. Shut down for the night.

Estimated Costs: Daily $ 4 080 Cumulative $ 114 847 Supervisor: C. Creelman/M. Durette

Page No. 04

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. CI

J

WEATHER Raining TEMP 11 °C ROAD Good DATE 96 09 28 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-05 CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 10.00 $68.40 $684 D3 Tractor 10.00 57.00 570 930 Loader 6.50 57.00 370 2 - Tandem Gravel Trucks 24.00 51.30 1 231 Compactor 7.00 72.40 507 Supervision 2.0 days 1 800

MATERIALS USED:

339 tonnes (0 to 2%2) gravel $8.86/tonne 3 005 864 tonnes sand, 48 loads 5, $11.40/load 547

TOTAL $8 714

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued dipping 584 mm conductor hole. Dug to 14.0 m GL (conductor rig does not work on weekends). Ran ESP into water well. Started hauling sand and gravel. Spread gravel onto access road. Started laying down and compacting ±0.30 m of sand under rig matting area and high use area on location. Started digging sump. Shut down for the night.

Estimated Costs: Daily $ 8 714 Cumulative $ 123 561 Supervisor: C. Creelman/M. Durette

Page No. 05

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

BISSETT RESOURCE CONSULTANTS LTD. a$+

DAILY CONSTRUCTION REPORT

WEATHER Cloudy TEMP 10 °C ROAD Good DATE 96 09 29 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-06

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 8.00 $68.40 $547 D3 Tractor 9.50 57.00 542 Compactor 9.00 57.00 513 Supervision 2.0 days 1 800

MATERIALS USED:

1747 tonnes (0 to 21/2) gravel $8.86/tonne 15 478 Geotextile 600 6.4 mm (steel plate) cellar cribbing 600

TOTAL $20 080

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued to haul, spread and compact gravel. Laid down geotextile over area where rig matting will be located. Installed cellar cribbing. Shut down for the night.

NOTE: Experienced intermittent rain most of the day. Heavy rain last night.

Estimated Costs: Daily $ 20 080 Cumulative $ 143 641 Supervisor: C. Creelman/M. Durette

Page No. 06

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

57.00 171 D3 Tractor 3.00

Supervision

MATERIALS USED:

2.0 days 1 800

BISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT

WEATHER Clear TEMP 7 °C ROAD Good DATE 96 09 30

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-07

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Excavator 9.00 $68.40 $615

TOTAL $2 586

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Cleaned out existing drainage ditch along westerly boundary of location and 150 m

beyond edge of the location to assist with proper drainage. Spread gravel in northern portion of the location. Location wet because of heavy rains on the night of 96 09 28. Shut down for the night.

Location is 65% complete.

Estimated Costs: Daily $ 2 586 Cumulative $ 146 227 Supervisor: C. Creelman/M. Durette

Page No. 07

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 7 °C ROAD Good DATE 96 10 01 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-08

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 10.00 $68.40 $684 D3 Tractor 10.00 57.00 570 930 Front End Loader 6.00 57.00 342 4 - Tandem Gravel Trucks 30.00 51.30 1 539 Supervision 2.0 days 1 800

MATERIALS USED: 87 tonnes (0 - 21/2) gravel at $8.86/tonne 771 161 tonnes (4-6) washed stone at $11.00/tonne 1 771

TOTAL $7 477

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to haul and spread gravel onto the location. Dug drainage ditch from rig matting area to ditch on western side of location/filled with 10 to 15 mm stone. Continued to dig sump. Lease is wet. Rathole diggers dug conductor hole to 18.0 m GL. Shut down for the night.

Estimated Costs: Daily $ 7 477 Cumulative $ 153 704 Supervisor: C. Creelman/M. Durette

Page No. 08

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 9 °C ROAD Good DATE 96 10 02 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-09 CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

Estimated Costs: Daily $ 8 741 Cumulative $ 162 445 Supervisor: C. Creelman/M. Durette

Page No. 09

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EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 10.00 $68.40 $684 D3 Tractor 9.00 57.00 513 2 - Gravel Trucks 8.00 51.30 410 Supervision 2.0 days 1 800

MATERIALS USED: 602 tonnes (0 - 272) gravel at $8.86/tonne 5 334

TOTAL $8 741

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to dig sump, dug to 11:00 - shut down because of rain. Hauled and

spread gravel onto the location. Rathole diggers dug 584 mm conductor hole to 23.0 m GL. Location approximately 75% complete. Shut down for the night.

BISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT

WEATHER Cloudy TEMP 9 °C ROAD Good DATE 96 10 03 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-10 CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

Estimated Costs: Daily $ 10 717 Cumulative $ 173 162 Supervisor: C. Creelman/M. Durette

Page No. 10

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 9.50 $68.40 $650 D3 Tractor 10.00 57.00 570 2 - Tandem Gravel Trucks 29.50 51.30 1 513 Front End Loader 8.50 57.00 484 Supervision 2.0 days 1 800

MATERIALS USED: 545 tonnes (0 - 21/2) qravel at $8.86/tonne 4 829 60 loads (1080 tonnes) sand at $11.40/load 684 17 tonnes (4 - 6) stone at $11/tonne 187

TOTAL $10 717

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Ran 508 mm conductor pipe to 23 m KB. Prepared to cement. Cement is expected at 08:00, 96 10 03. Continued to place and spread sand and gravel at west side of lease. Location approximately 85% complete. Shut down for the night at 17:30 P.M. because of rain.

CONTRACTOR Claude Morin Construction & LBM Inc. STATUS Preparing location

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. 41I

WEATHER Clear TEMP 0 °C ROAD Good DATE 96 10 04 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-11

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Excavator 5.00 $68.40 $342 D3 Tractor 9.00 57.00 513 2 - Gravel Trucks 3.00 51.30 154 930 Loader 1.50 57.00 86 Compactor 3.00 92.00 276 Supervision 2.0 days 1 800

MATERIALS USED: Conductor pipe 18 126 1044 tonnes sand at $11.40/tonne 661 175 tonnes 9.5 mm stone at $11.13/tonne 1 948 324 tonnes (0 - 2'/2 gravel) at $8.86/tonne 2 871

TOTAL $26 777

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. (Correction Day No. PS-10/96 10 03, conductor pipe landed at 23.0 m GL). Cemented conductor pipe full length using Class "A" cement (volume unknown). Rigged out and released rathole drillers. Installed 168.3 mm x 12.2 m cellar drain. Spread and compacted 9.5 mm stone. Completed hauling and spreading sand and gravel on location. Shut down for the night.

NOTE: Rock water drains that were installed on September 30, 1996, have been continuously running water.

Estimated Costs: Daily $ 26 777 Cumulative $ 199 939 Supervisor: C. Creelman/M. Durette

Page No. 11

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DAILY CONSTRUCTION REPORT CrISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP -1 °C ROAD Good DATE 96 10 05 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. PS-12 CONTRACTOR Claude Morin Construction STATUS Preparing location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Trucking $869

312 Excavator 19.00 $68.40 1 300

D3 Tractor 1.00 57.00 57

2 - Gravel Trucks 18.00 51.30 923

Labour 12.00 12.00 144

Supervision 2.0 days 1 800

MATERIALS USED: Fencing Material 1 124

97 tonnes (0 - 2',4) gravel at $8.86/tonne 859 32 tonnes 19.1 mm gravel at $9.20/tonne 294

TOTAL ST 370

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to dig_ sumo. Installed fence along western extremity of the sump area. Finished hauling and spreading gravel onto the location. Shut down for the night. Location is approximately 95% complete.

NOTE: Cemented conductor pipe with ±4.0 tonnes (3.0 m3) Class "A" cement.

Estimated Costs: Daily $ 7 370 Cumulative $ 207 309 Supervisor. C. Creelman/M. Durette

Page No. 12

DAY NO. PS-13 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 WEATHER Clear TEMP -1 °C ROAD Good DATE 96 10 06

CONTRACTOR Claude Morin Construction STATUS Waiting on drilling tools

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

2 - Excavators 16.00 $68.40 $1 094

D3 Tractor 3.50 57.00 200

2 - Gravel Trucks 12.00 51.30 616

Labour 5.00 12.00 60

Supervision 2.0 days 1 800

MATERIALS USED: Cellar Drain 200

TOTAL $3 970

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Completed diming the sump. finished installing safety fence around the perimeter of the sump area. Installed gate across the access road and erected wamina signs. Released and moved equipment off location. Returned to base.

Location Preparation Complete STATUS: WO Orillina Tools

Estimated Costs: Daily $ 3 970 Cumulative $ 211 279 Supervisor. C. Creelman/M. Durette

Page No. 13

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. aQ►

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Weather Clear Temp -7 °C Road Good Date 9611 23 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. PS-14 Depth m Progress m Hole Size mm Status Rigging up Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. m 1 RU & RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin nn/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued rigging up drilling tools. Rigged in sump pump and pumped rain water from sump into drainage ditch. Drilling fluid materials and bits arrived on location 96 11 22. Expect Ralex engine and Genoil stabilizers to arrive on location 96 11 23. Continued rigging up drilling tools.

ESTIMATED COSTS: DAILY $ 6 410 CUMULATIVE $ 217 689 SUPERVISOR C. Creelman

Page No. 14

BISSETT RESOURCE CONSULTANTS LTD. 411

DAILY DRILLING REPORT

Weather Clear Temp -22 °C Road Good Date 9611 24

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. PS-15

Depth m Progress m Hole Size mm Status Rigging up

Mud: Wt kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS No.

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6

RU&RD 12.00

Size - mm m Drill Actual

Type m Reaming

S.N. m Coring

Jets - mm m Cond. Hole

Wt. - daN m Trips

r/min m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to rig up drilling tools. Shut down for the night.

ESTIMATED COSTS: DAILY $ 16 850 CUMULATIVE $ 234 539 SUPERVISOR C. Creelman

Page No. 15

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp -12 'C Road GENOIL et al ST. LEONARD NO. 1

Date 96 11 25 Rig Ralex, 1 Day No. PS-16

Weather Well

Good

Depth m Progress m Hole Size mm Status Rigging up Mud: Wt kg/m3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. m 1 RU & RD 12.00

Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring

Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued rigging up drilling tools. Repaired and started boiler. Welded extension on to 508 mm OD conductor barrel. Installed flow line. Shut down for the night.

ESTIMATED COSTS: DAILY $ 5 740 CUMULATIVE $ 240 279 SUPERVISOR C. Creelman

Page No. 16

1

ESTIMATED COSTS: DAILY $ 106 040 CUMULATIVE $ 346 319 SUPERVISOR C. Creelman

BISSETT RESOURCE CONSULTANTS LTD. iet,..

DAILY DRILLING REPORT

Cloudy Temp -2 'C Road

GENOIL et al ST. LEONARD NO. 1

Date 96 11 26 Rig Ralex, 1 Day No. PS-17

Weather Well Depth m Progress m Hole Size mm Status Rigging up

Mud: Wt kg/m3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS No.

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6

RU & RD 12.00

Size - mm m Drill Actual Type m Reaming

S.N. m Coring Jets - mm m Cond. Hole Wt. - daN m Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to rig up drilling tools. Held prespud meeting with Ralex, Dowell, MI and Genoil personnel. Finished rigging up drilling tools. Shut down for the night.

NOTE: WHMIS training was held for Ralex crews.

Page No. 17

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C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Clear Temp -10 'C Road Good Date 9611 27

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 01

Depth 65 m Progress 65 m Hole Size 311 mm Status Drilling

Mud: Wt 1040 kg/m' Visc. 45 s/L W.L. 9.0 cm3 pH 11.0 PV 23 mPa.s YP 6 Pa Gels 1/2 Pa

Methyl Blue 60.0 Solids 5.0 % Filter Cake 2.0 mm Salt 2000 mg/L Cal. 300 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 1A 21 m 2.50

Size - mm 311.1 30 m 1.75 Type FDGH 45 m 1.50 S.N. LF8663 m

Jets - mm 2x11.9/1x12.7 m Wt. - daN 4 000 m r/min 100 m Out - m In PUMP In - m Surface Liner Length Metres 65 No. mm mm Hours 8.00 1 159 229 Condition 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 3 sxs Caustic PP Output AV 3 sxs Soda Ash kPa Umin m/min

81 sxs Gel 5 000 1 600 45

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD 14.00 ° Drill Actual 8.00 ° NO6E Reaming

Coring ° 5 Cond. Hole 1.00

6 Trips 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 1.00 60 11 Wireline Log 60 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

133 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rigged to spud. Spud at 14:00, 96 11 26. Control drilling. Drilled to 65 m KB with reduced WOB to offset deviation. Drilling pilot hole at report time, ROP: 2.5 m/h.

ESTIMATED COSTS: DAILY $ 19 316 CUMULATIVE $ 365 635 SUPERVISOR C. Creelman

Page No. 18

Desilter Overflow Wt. 1100 kg/m3 Rate Centrifuge Underflow Wt. kg/m3

Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Overflow Wt. kg/m'

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -10

Well GENOIL et al ST. LEONARD NO. 1 °C Road Good

Ralex, 1 Date 96 11 28

Day No. 02 Rig

Depth 215 m Progress 150 m Hole Size 311 mm Status Drilling

Mud: Wt 1100 kg/m' Visc. 48 s/L W.L. 10.0 cm3 pH 10.0 PV 22 mPa.s YP 4 Pa Gels 1/3 Pa

Methyl Blue 56.0 Solids 6.3 % Filter Cake 2.0 mm Salt 900 mg/L Cal. 100 mg/L

Desilter Underflow Wt. 1210 kg/m3 Rate 1.0 Umin Desander Underflow Wt. kg/m3 Rate Umin

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1A 66 m 1.25 °S50E 1 RU & RD

Size - mm 311 77 m 0.50 °N85E 2 Drill Actual 21.25

Type FDGH 118 m 0.50 ° S73W 3 Reaming

S.N. LF8663 148 m 0.75 °N88E 4 Coring

Jets - mm 2x11.9/1x12.7 174 m 0.50 °N25E 5 Cond. Hole

Wt. - daN 6 000 m 6 Trips r/min 110 m ° 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig 1.00 In - m Surface Liner Length 9 Cut Off D.L.

Metres 215 No. mm mm SPM 10 Dev. Survey 1.50 Hours 29.25 1 159 229 71 11 Wireline Log Condition 2 159 229 71 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 sxs Caustic PP Output AV Power 15 Test BOP

2 sxs Soda Ash kPa Umin m/min kW 16 DST 77 sxs Gel 7 400 1 860 12 229 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling with reduced WOB to control deviation. Hole is in good condition. On connections beginning at 24:00, 96 11 28, noticed that hole is taking fluid at ±0.20 m3 /7 mins (1.7 m3/h). Minor losses, but will continue to monitor same. Shut down to repair air hose on engine clutch. Drilling pilot hole at report time, ROP: ±7.0 m/h.

ESTIMATED COSTS: DAILY $ 19 308 CUMULATIVE $ 384 943 SUPERVISOR C. Creelman

Page No. 19

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Date 96 11 29 Clear Temp -8 °C Road Good

aBISSETT RESOURCE CONSULTANTS LTD.

Weather Well GENOIL et al ST. LEONARD NO. 1

DAILY DRILLING REPORT

311 mm Status Drilling cm3 pH 10.0 PV 26 mPa.s YP 5.5 Pa Gels 1/6 Pa

2.0 mm Salt 700 mg/L Cal. 60 mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m' Desilter Overflow Wt. 1 140 kg/m' Rate Centrifuge Underflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1A 2A 210 m 1.00 °Totco 1 RU & RD

Size - mm 311 311 226 m 1.50 °N10E 2 Drill Actual 16.00 Type FDGH HP13G 235 m 1.25 °Totco 3 Reaming 0.50 S.N. LF8663 MM6814 271 m 2.00 °N7E 4 Coring Jets - mm 2x11.9/1x12.7 3 x 12.7 m 5 Cond. Hole 0.50 Wt. - daN 5-7000 6 000 m 6 Trips 5.00 r/min 110 110 m 7 Lubr. Rig 0.25 Out - m 257 In PUMP 8 Repair Rig 0.75 In - m Surface 257 Liner Length 9 Cut Off D.L. Metres 257 40 No. mm mm SPM 10 Dev. Survey 1.00 Hours 36.75 8.00 1 159 229 140 11 Wireline Log Condition 2-1-1 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

1 sx Caustic PP Output AV Power 15 Test BOP 1 sx Soda Ash kPa Umin m/min kW 16 DST

75 sxs Gel 6 000 1 600 10 159 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 257 m KB. Shut down to repair mud pump. Circulated to condition mud and hole. Tripped out for bit #1A. Ran bit #2k Broke circulation and washed 10 m to bottom. Drilling. Drilling with reduced WOB to control drift at report time, ROP: ±4.0 m/h.

NOTE: Pump 2 down, waiting on rod seal. Desilter only ran 4 hours, desilter/mixing pump down because of electrical problems.

ESTIMATED COSTS: DAILY $ 28 850 CUMULATIVE $ 413 793 SUPERVISOR C. Creelman

Page No. 20

Day No. 03 Rig Ralex, 1

Depth 297 m Progress Mud: Wt 1 140 kg/m' Visc. Methyl Blue 60.0 Solids Desilter Underflow Wt. 1 340

82 m Hole Size 55 s/L W.L. 10.0

8.8 % Filter Cake kg/m' Rate 1.0

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 2 °C Road Good Date 9611 30

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 04

Depth 368 m Progress 71 m Hole Size 311 mm Status Drilling Mud: Wt 1 120 kg/m' Visc. 65 s/L W.L. 10.0 cm' pH 10.0 PV 36 mPa.s YP 12 Pa Gels 2.5/12.0Pa Methyl Blue 70.0 Solids 7.6 % Filter Cake 2.0 mm Salt 500 mg/L Cal. 40 mg/L Desilter Underflow Wt. 1 210 kg/m' Rate 5.0 Umin Desander Undertlow Wt. kg/m' Rate Umin

Desilter Overflow Wt. 1 110 kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 2A 298 m 2.125 °N12E 1 RU & RD

Size - mm 311 328 m 2.50 °N7W 2 Drill Actual 18.25

Type HP13G m ° 3 Reaming S.N. MM6814 m 4 Coring Jets - mm 3 x 12.7 m 5 Cond. Hole Wt. - daN 5 000 m ° 6 Trips

r/min 120 m 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig 4.75

In - m 257 Liner Length 9 Cut Off D.L.

Metres 111 No. mm mm SPM 10 Dev. Survey 0.75

Hours 24.50 1 159 229 80 11 Wireline Log Condition 2 159 229 80 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

83 sxs Gel PP Output AV Power 15 Test BOP 3 sxs Soda Ash kPa Umin m/min kW 16 DST

9 000 2 100 12 279 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling with reduced WOB to control deviation. Drilled to 312 m KB. Repaired clutch and governor on #3 engine, repaired pump rod seal. Drilling with both mud pumps. Held safety meeting. Drilled to 368 m KB. Drilling at report time, ROP: 3.5 to 4.0 m/h.

Hole is in good condition.

ESTIMATED COSTS: DAILY $ 20 113 CUMULATIVE $ 433 906 SUPERVISOR C. Creelman

Page No. 21

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BISSETT RESOURCE CONSULTANTS LTD. Cli

DAILY DRILLING REPORT

Cloudy Temp 5 °C Road GENOIL et al ST. LEONARD NO. 1

Date 96 12 01 Rig Ralex, 1 Day No. 05

Weather Well

Good

Depth 418 m Progress 50 m Hole Size 311 mm Status Drilling Mud: Wt 1 110 kg/m' Visc. 60 s/L W.L. 10.4 cm' pH 8.5 PV 28 mPa.s YP 8 Pa Gels 2/10.5 Pa

Methyl Blue 70.0 Solids 7.0 % Filter Cake 2.0 mm Salt 500 mg/L Cal. 40 mg/L

Desilter Underflow Wt. 1 160 kg/m' Rate 2.0 1.../min Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. 1 105 kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

°N12W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °N12W Drill Actual 22.75 °N12W Reaming

Coring Cond. Hole Trips Lubr. Rig 0.75 Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 0.50 80 11 Wireline Log 80 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

366 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

No. 2A Size - mm 311 Type HP13G S.N. MM6814 Jets - mm 3 x 12.7 Wt. - daN 3 - 4 000 r/min 120/140 Out - m In In - m 257 Metres 161 Hours 49.50 Condition

BITS SURVEYS 361 m 3.25 382 m 3.50 411 m 3.75 m m m m

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 42 sxs Gel PP Output AV 2 sxs Soda Ash kPa Umin m/min

10 500 2 100 14

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling with reduced WOB to control deviation. Hole in good condition. Drilling at report time, ROP: 1.8 m/h.

Held safety meeting with two crews.

ESTIMATED COSTS: DAILY $ 18 921 CUMULATIVE $ 452 827 SUPERVISOR C. Creelman

Page No. 22

J

ESTIMATED COSTS: DAILY $ 36 229 CUMULATIVE $ 489 156 SUPERVISOR C. Creelman

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 10 'C Road Good Date 96 12 02 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 06 Depth 444 m Progress 26 m Hole Size 311 mm Status Drilling Mud: Wt 1 100 kg/m' Visc. 72 s/L W.L. 10 cm3 pH 8.5 PV 37 mPa.s YP 13 Pa Gels 2.5/12 Pa Methyl Blue 74.0 Solids 6.3 % Filter Cake 2.0 mm Salt 500 mg/L Cal. 40 mg/L Desilter Underflow Wt. 1 100 kg/m' Rate 2.0 Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. 1 100 kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 2A 3A 424 m 4.25 °N14W 1 RU & RD Size - mm 311 311 m 0 2 Drill Actual 18.00 Type HP13G MHP13G m 3 Reaming S.N. MM6814 CL6017 m ° 4 Coring Jets - mm 3 x 12.7 3 x 12.7 m 5 Cond. Hole Wt. - daN 3 000 5 000 m 6 Trips 4.75 r/min 120 to 140 110 m ° 7 Lubr. Rig 0.25 Out - m 436 In PUMP 8 Repair Rig In - m 257 436 Liner Length 9 Cut Off D.L. Metres 179 8.00 No. mm mm SPM 10 Dev. Survey 1.00 Hours 67.50 3.25 1 159 229 75 11 Wireline Log Condition 2-3-2 2 159 229 75 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

32 sxs Gel PP Output AV Power 15 Test BOP 1 sx Soda Ash kPa Umin m/min kW 16 DST

10 000 1 970 12 328 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled with reduced WOB to control deviation. Drilled to 436 m KB. Circulated to condition mud and hole. Tripped out bit #2A. Ran bit #3A, picked up additional 2 - 311 mm stabilizers and 171 mm drilling jars. Tripped in, broke circulation and reamed 10 m to bottom, no fill. Drilled with reduced WOB to control deviation. Drilling at report time, ROP: 2.75 m/h.

Page No. 23

C BISSETT RESOURCE CONSULTANTS LTD. 4$+

DAILY DRILLING REPORT

Weather Clear Temp -2 °C Road Good Date 96 12 03 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 07 Depth 476 m Progress 32 m Hole Size 311 mm Status Drilling Mud: Wt 1 100 kg/m3 Visc. 56 s/L W.L. 10.4 cm3 pH 8.5 PV 32 mPa.s YP 9 Pa Gels 2/11 Pa Methyl Blue 70.0 Solids 6.5 % Filter Cake 2.0 mm Salt 500 mg/L Cal. 40 mg/L Desilter Underflow Wt. 1 140 kg/m3 Rate 2.0 Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. 1 095 kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS No. 3A 442 m 6.75 Size - mm 311 445 m 7.00 Type MHP13G 454 m 7.125 S.N. CL6017 m Jets - mm 3 x 12.7 m Wt. - daN 3 000 m r/min 110/120 m Out - m In PUMP In - m 436 Liner Length Metres 40 No. mm mm Hours 25.25 1 159 229 Condition 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 60 sxs Gel PP Output AV 2 sxs Soda Ash kPa Umin m/min

6 500 1 570 10.2

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

°N12W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °N14W Drill Actual 19.25 °N17W Reaming

Coring Cond. Hole Trips 2.75 Lubr. Rig 0.50 Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 1.50 120 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

169 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Lost 40 m3 drilling mud during previous trip and first 2 hours drilling on bottom. Drilled with reduced WOB to control deviation. Reran survey at 442 m KB to confirm abrupt hole angle increase. Drilled to 468 m KB. Held safety meeting. Drilled with reduced WOB to control deviation. Drilling at report time, ROP: t1.5 m/h.

NOTE: Mud motor and directional tools were mobilized from Edmonton 96 12 02. ETA: 96 12 05.

ESTIMATED COSTS: DAILY $ 22 697 CUMULATIVE $ 511 853 SUPERVISOR C. Creelman

Page No. 24

J

Weather Clear Temp -8 Well GENOIL et al ST. LEONARD NO. 1

°C Road Good Date 96 12 04 Rig Ralex 1 Day No. 08

CUMULATIVE $ ESTIMATED COSTS: DAILY $ 23 976 535 829 SUPERVISOR C. Creelman

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Depth 520 m Progress 60 m Hole Size 311 mm Status Drilling

Mud: Wt 1 095 kg/m' Visc. 60 s/L W.L. 11.0 cm3 pH PV 30 mPa.s YP 8.5 Pa Gels 2/12 Pa

Methyl Blue 70.0 Solids 6.0 % Filter Cake 2.0 mm Salt 550 mg/L Cal. 40 mg/L

Desilter Underflow Wt. 1 140 kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. 1 095 kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1 840 kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 3A 463 m 7.125 °N17W 1 RU & RD

Size - mm 311 473 m 7.375 °N21W 2 Drill Actual 22.50

Type MHP13G 482 m 7.000 °N23W 3 Reaming S.N. CL6017 491 m 7.375 °N2OW 4 Coring

Jets - mm 3 x 12.7 500 m 7.375 °N26W 5 Cond. Hole

Wt. - daN 6 000 m 6 Trips r/min 110/120 m 7 Lubr. Rig

Out - m In PUMP 8 Repair Rig

In - m 436 Liner Length 9 Cut Off D.L.

Metres 520 No. mm mm SPM 10 Dev. Survey 1.50 Hours 47.75 1 159 229 80 11 Wireline Log Condition 2 159 229 80 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

52 sxs Gel PP Output AV Power 15 Test BOP 1 sx Soda Ash kPa Umin m/min kW 16 DST

9 500 1 920 12 303 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled with reduced weight on bit to control drift. Drilling at report time, ROP: 3.0 m/h.

NOTE: Slight increase in rotary torque at 495 m KB.

Page No. 25

SURVEYS 509 m 7.50 521 m 7.375 m m m m m

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 23 sxs Gel 13 sxs Bicarb PP Output AV

1 sx Soda Ash kPa Umin m/min 15 sxs Lignite 4 sxs SAPP

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

No. 3A Size - mm 311 Type MHP13G S.N. CL6017 Jets - mm 3 x 12.7 Wt. - daN 6 000 r/min 110 Out - m 535 In - m 436 Metres 99 Hours 53.00 Condition 2-1-1

BITS

CI BISSETT RESOURCE CONSULTANTS LTD. $+

DAILY DRILLING REPORT

Weather Snowing Temp -4 °C Road Good Date 96 12 05

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 09

Depth 535 m Progress 15 m Hole Size 311 mm Status WOC Mud: Wt 1 090 kg/m' Visc. 50 s/L W.L. 8.0 cm3 pH 5.8 PV 32 mPa.s YP 5 Pa Gels 1/2 Pa

Methyl Blue 66 Solids 5.7 % Filter Cake 1.5 mm Salt 800 mg/L Cal. 280 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

°N22W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °N23W Drill Actual 12.50

Reaming Coring Cond. Hole 3.25 Trips 6.75 Lubr. Rig Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 1.50 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 535 m KB with reduced WOB. Tripped out bit #3A, laid down stabilizers and monel drill collar. Ran 114 mm OD drillpipe open ended, landed at 534.5 m KB. Rigged in cementers. Held safety meeting. Ran plug #1, 535 m to 360 m KB with 26.0 tonnes Class "G" + 2% CaCI, at 1 950 kg/m' slurry density. Plug down at 01:01, 96 12 05. Pulled drillpipe to 275 m KB. Circulating while waiting on cement.

ESTIMATED COSTS: DAILY $ 25 573 CUMULATIVE $ 561 402 SUPERVISOR C. Creelman

Page No. 26

J

ESTIMATED COSTS: DAILY $ 53 879 CUMULATIVE $ 621 446 SUPERVISOR C. Creelman

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Cloudy Temp 4 °C Road Good Date 96 12 06 Rig Ralex, 1 Day No. 10

Weather Well GENOIL et al ST. LEONARD NO. 1 Depth 312 m Progress 13 m Hole Size 311 mm Status Polish cement plug Mud: Wt 1 060 kg/m' Visc. 38 s/L W.L. 12.0 cm' pH 10.9 PV 15 mPa.s YP 2 Pa Gels0.5/1.0 Pa

Methyl Blue 45.0 Solids 4.0 % Filter Cake 1.5 mm Salt 1 000 mg/L Cal. 100 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1A m 1 RU & RD

Size - mm 311 m 2 Drill Actual Type FDGH m 3 Reaming

S.N. LF8663 m 4 Coring

Jets - mm 2x11.4, 1x12.2 m 5 Cond. Hole 2.75

Wt. - daN 5 - 8 000 m 6 Trips 4.75 r/min 110 m 7 Lubr. Rig

Out - m In PUMP 8 Repair Rig In - m 289 Liner Length 9 Cut Off D.L. Metres 13 No. mm mm SPM 10 Dev. Survey Hours 2.00 1 159 229 80 11 Wireline Log Condition 2 159 229 80 12 Run Csg/Cmt 14.50

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

10 500 2 100 13.6 366 17 Plug Back 1.00 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Clean Tanks 1.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated while WOC. Tripped out open ended drillpipe. Slipped and cut line. Pumped rain water out of sump into drainage ditch. Ran bit #1A (RR) to 275 m KB. Circulated, conditioned mud and WOC. WOC 24 hours. Tagged top of plug #1 at 288.5 m KB. Drilled soft cement to 297 m KB. Drilling in firm cement beginning at 297 m KB. Drilling cement at report time, ROP 7.0 m/h.

Page No. 27

1

322 20 11.50

SURVEYS 310 m 2.25 319 m 2.50

BITS 4A 311 MDSH LH9115 3 x 17.5

m m m

1 000 m m

PUMP Liner Length

No. mm mm 1 159 229

In 340 (mm)

2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 36 sxs Gel PP Output AV 6 sxs Caustic kPa Umin m/min

1 sx SAPP 7 500 1 750 11 28 sxs Bicarb

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec formation.

No. 1A (RR) Size - mm 311 Type FDGH S.N. LF8663 Jets - mm 2x11.9, 1x12.7 Wt. - daN 5 000 r/min 110 Out - m 322 In - m 289 Metres 34 Hours 3.50 Condition

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -7 °C Road Good Date 96 12 07

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Depth 342 m Progress 30 m Hole Size 311 mm Status Drilling

Day No. 11

Mud: Wt 1 060 kg/m' Visc. 62 s/L W.L. 13.0 Methyl Blue 57.0 Solids 4.50 % Filter Cake Desilter Underflow Wt. 1 120 kg/m' Rate Desilter Overflow Wt. 1 050 kg/m' Rate Centrifuge Underflow Wt. kg/m'

cm3 pH 13.0 PV 19 mPa.s YP 14 Pa Gels 19/31 Pa

2.0 mm Salt 1 000 mg/L Cal. 100 mg/L Umin Desander Underflow Wt. kg/m' Rate Umin

Umin Desander Overflow Wt. kg/m' Rate L./min Centrifuge Overflow Wt. kg/m'

°N11W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °N5W Drill Actual 11.25

Reaming Coring Cond. Hole 4.00 Trips 7.75 Lubr. Rig Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 0.50 73 11 Wireline Log 73 12 Run Csg/Cmt

13 Wait on Cmt 0.50 14 Nipple Up

Power 15 Test BOP kW 16 DST

219 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled firm cement from 312 m to 322 m KB. Circulated bottoms up. Tripped out bit #1A (RR). Ran bit #4A and 203 mm OD mud motor with 1.15° bent housing. Broke circulation. Control drilled at 3.0 m/h from 322 m to 333 m KB with 100% cement returns. Control drilled at 1.0 m/h from 333 m to 337 m KB with 100% cement in returns. Circulated bottoms up. Tripped out bit #4A. Increased bent housing setting from 1.15° to 1.86°. Ran bit #4A . Broke circulation and control drilled from 337 m to 342 m KB at 1.0 m/h with 93% cement and 7% shale in returns. Control drilling at report time, ROP: 1.0 m/h.

ESTIMATED COSTS: DAILY $ 41 881 CUMULATIVE $ 663 327 SUPERVISOR C. Creelman

Page No. 28

°C Road Good Date 96 12 08

No. 4A Size - mm 311 Type MDSH S.N. LH9115 Jets - mm 3 x 17.5 Wt. - daN 1 000 r/min 340 Out - m In In - m 322 Metres 19 Hours 27.50 Condition

DRILLING MUD ADDITIVES USED: 20 sxs Gel

19 L Acid

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec formation.

BITS SURVEYS 329 m 2.25 338 m 2.00 348 m 2.30 357 m 3.30

m m m

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

HYDRAULIC PP

Output AV kPa

Umin m/min 7 000

1 900 12

BISSETT RESOURCE CONSULTANTS LTD. Cli

DAILY DRILLING REPORT

Weather Snowing Temp 0 Well GENOIL et al ST. LEONARD NO. 1 Ralex, 1

Depth 377 m Progress 35 m Hole Size 311 Drilling

Mud: Wt 1 055 kg/m3 Visc. 93 s/L W.L. 16.0 cm3 pH 13.0 PV 19 mPa.s YP

Methyl Blue 52.0 Solids 3.4 % Filter Cake 2.5 mm Salt 1 800

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt.

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt.

Centrifuge Underflow Wt. 1 495 kg/m3 Centrifuge Overflow Wt.

Rig mm Status

Day No. 12

15 Pa Gels 16/36 Pa mg/L Cal. 0 mg/L kg/m' Rate Umin

kg/m' Rate Umin 1 045 kg/m'

°N5W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °N2W Drill Actual 16.00 °N1OW Reaming °N24W Coring

Cond. Hole 0.50 Trips 5.75 Lubr. Rig Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 1.75 72 11 Wireline Log 72 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

222 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Slid and rotated to 348 m KB. Circulated bottoms up. Tripped out bit #1 and adjusted bent housing from 1.86° to 1.50°. Ran bit and mud motor. Broke circulation and washed 10 m to bottom. Slid to 354 m KB, °90% shale in returns. Rotated to 360 m KB. Slid to 377 m KB. Returns show 80% siltstone and 20% cement at 370 m KB. Control drilling at report time, ROP: 4.0 m/h,

NOTE: Lost ±20 m3 drilling mud at 372 m KB.

ESTIMATED COSTS: DAILY $ 26 684 CUMULATIVE $ 690 011 SUPERVISOR C. Creelman

Page No. 29

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No. 4A Size - mm 311 Type MDSH S.N. LH9115 Jets - mm 3 x 17.5 Wt. - daN 3 000 r/min 340 Out - m In In - m 322 Metres 78 Hours 24.50 Condition

DRILLING MUD ADDITIVES USED:

HYDRAULIC 26 sxs Gel

PP

Output AV 3 sxs Bicarb

kPa

Umin m/min 6 sxs Lignite

7 000

1 910 12.4

BITS

SURVEYS 367 m 3.60 376 m 3.20 385 m 3.10

m m m m

PUMP Liner Length

No. mm mm 1

159

229 2

159

229

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Foggy Temp -2 °C Road Good

Date 96 12 09

Well

GENOIL et al ST. LEONARD NO. 1

Rig

Ralex, 1

Day No. 13

Depth 400 m Progress 22 m Hole Size 311 mm Status Drilling Mud: Wt 1 055 kg/m' Visc. 44 s/L W.L. 16.0 cm3 pH 12.0 PV 12 mPa.s YP 13 Pa Gels 12/29 Pa

Methyl Blue 49.0 Solids 3.4 % Filter Cake 2.5 mm Salt 2 000 mg/L Cal. 0 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. 1 645 kg/m3 Centrifuge Overflow Wt. 1 045 kg/m'

TIME DISTRIBUTION Code/Operation Hours

° N21 W 1 RU & RD °N2OW 2 Drill Actual 18.25 °N16W 3 Reaming ° 4 Coring ° 5 Cond. Hole ° 6 Trips 3.75 ° 7 Lubr. Rig

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 2.00

72 11 Wireline Log

72 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

222 17 Plug Back

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec formation.

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled with reduced weight on bit to control deviation. Drilled to 383 m KB. Tripped out and changed bent housing setting from 1.50° to 1.86°. Tripped in, no fill. Control drilling at 4.0 m/hr. Drilling at report time. Samples indicated 85% shale and 15% cement.

ESTIMATED COSTS: DAILY $

27 330 CUMULATIVE $

717 341 SUPERVISOR

C. Creel man

Page No. 30

-8 Weather Well

Clear Temp GENOIL et al ST. LEONARD NO. 1

Date 96 12 10 °C Road Good

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Rig Ralex, 1

Depth 430 m Progress Mud: Wt 1 050 kg/m' Visc. 43 s/L W.L. 16.0 Methyl Blue 49.0 Solids 3.4 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

°N7W

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7

RU&RD °N5W Drill Actual 13.00 °N5W Reaming °N3W Coring °N5E Cond. Hole 1.50 °N6W Trips 7.00 ° Lubr. Rig

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 2.50 73 11 Wireline Log 73 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

159 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled with mud motor to 419 m KB. Tripped out, changed bent housing from 1.86° to 2.12°. Tripping in, washed 10 m to bottom. Drilled with mud motor. Drilled to 430 m KB. Tripped out bit #4A, laid down mud motor. Ran bit #5A. Ran drift surveys at 419 m and 426 m KB. Tripping out at report time.

Strapped drill string out at 430 m KB, +0.50 m difference, no correction.

ESTIMATED COSTS: DAILY $ 38 371 CUMULATIVE $ 755 712 SUPERVISOR C. Creelman

Page No. 31

DRILLING MUD ADDITIVES USED: HYDRAULIC Output AV Umin m/min 1 910 12.4

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

No. 4A Size - mm 311 Type MDSH S.N. LH9115 Jets - mm 3x17.5 Wt. - daN 5 000 r/min 340 Out - m 419 In - m 322 Metres 97 Hours 52.50 Condition 2-3-2

PP kPa 5 000

BITS SURVEYS

m PUMP

Liner Length mm mm 159 229 159 229

394 m 3.20 403 m 3.40 413 m 5.40 419 m 6.40 426 m 5.30 419 m 6.00

5A 311 MFDSH LH9114 3x17.5 7 000 340 430 419 11 No.

1 2

3.00

cm3 pH 12.0 PV 11 mPa.s YP 13.5 Pa Gels 12/19 Pa

2.5 mm Salt 2 000 mg/L Cal. 0 mg/L kg/m' Rate Umin kg/m' Rate Umin

kg/m'

Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

Day No. 14

J

30 m Hole Size 311 mm Status Tripping

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

I

Weather Snowing Temp -1 'C Road Good Date 96 12 11

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 15

Depth 489 m Progress 59 m Hole Size 311 mm Status Drilling

Mud: Wt 1 080 kg/m' Viso. 45 s/L W.L. 16.8 cm3 pH 11.6 PV 18 mPa.s YP 3.5 Pa Gels 3/21 Pa

Methyl Blue 52.0 Solids 5.0 % Filter Cake 2.5 mm Salt 1 250 mg/L Cal. 0 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 5A 422 m 5.7 °N3E 1 RU & RD

Size - mm 311 432 m 4.2 °N10E 2 Drill Actual 10.00

Type MFDSH 441 m 2.3 °N23E 3 Reaming

S.N. LH9114 451 m 1.2 °N13E 4 Coring

Jets - mm 3 x 17.5 460 m 1.2 °N73W 5 Cond. Hole 0.75 Wt. - daN 6 000 469 m 1.75 °N84W 6 Trips 8.25 r/min 40/340 m 7 Lubr. Rig 0.25

Out - m In PUMP 8 Repair Rig In - m 419 Liner Length 9 Cut Off D.L. Metres 70 No. mm mm SPM 10 Dey. Survey 3.75 Hours 16.50 1 159 229 73 11 Wireline Log Condition 2 159 229 75 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

3 sxs Lignite PP Output AV Power 15 Test BOP 3 sxs Bicarb kPa Umin m/min kW 16 DST

36 sxs Gel 8 000 1 940 12.6 258 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 1.00 Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out. Checked mud motor and 2.12° bent housing setting. Reran bit #5 and 203 mm OD mud motor. Washed 10 m to bottom. Drilling. Slid from 430 m to 449 m KB. Rotated from 449 m to 452 m KB, 456 m to 461 m KB and 463 m to 485 m KB. Drilling at report time, ROP: 6.0 m/h.

NOTE: Floorhand was involved in an accident that resulted in an injured knee. Accident report to follow.

ESTIMATED COSTS: DAILY $ 26 168 CUMULATIVE $ 781 880 SUPERVISOR C. Creelman

Page No. 32

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -7 °C Road Good Date 96 12 12

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 16

Depth 530 m Progress 41 m Hole Size 311 mm Status Drilling

Mud: Wt 1 110 kg/m' Visc. 41 s/L W.L. 16.0 cm' pH 11.5 PV 15 mPa.s YP 4 Pa Gels 1/21 Pa

Methyl Blue 49.0 Solids 6.9 % Filter Cake 2 mm Salt 1 400 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 5A 6A 480 m 2.60 °N81W 1 RU & RD Size - mm 311 311 489 m 3.75 °N85W 2 Drill Actual 14.00

Type MFDSH M5153 499 m 5.00 °N73W 3 Reaming S.N. LH9114 LC7182 508 m 6.10 °N68W 4 Coring Jets - mm 3 x 17.5 3 x 17.5 m 5 Cond. Hole 0.25 Wt. - daN 5 000 5 000 m 6 Trips 6.25 r/min 32/340 340 m 7 Lubr. Rig 0.25 Out - m 524 In PUMP 8 Repair Rig In - m 419 524 Liner Length 9 Cut Off D.L. Metres 105 6 No. mm mm SPM 10 Dev. Survey 3.25 Hours 25.50 2.00 1 159 229 73 11 Wireline Log Condition 4-6-3 2 159 229 73 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

24 sxs Gel PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 8 500 1 910 12.4 285 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Slid and rotated to 496 m KB. Pump pressure increased drastically. Tripped out bit #5A and found mud motor failed. Ran bit #6 and 203 mm OD mud motor with 1.86° bent housing. Broke circulation and washed 10 m to bottom. Orientated, rotated from 499 m to 504 m and 509 m to 513 m KB. Deviation continues to increase. Tripped out bit #6A. Changed mud motor bent housing to 2.12°. Ran bit #6A. Broke circulation and washed 10 m to bottom. Orientated, drilling ahead at report time, ROP: 4.0 m/h.

ESTIMATED COSTS: DAILY $ 45 964 CUMULATIVE $ 827 844 SUPERVISOR C. Creelman

Page No. 33

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -2 °C Road Good Date 96 12 13

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 17

Depth 547 m Progress 65 m Hole Size 444 mm Status Reaming

Mud: Wt 1 115 kg/m' Visc. 48 s/L W.L. 13.0 cm3 pH 10.0 PV 21 mPa.s YP 4 Pa Gels 1/2 Pa

Methyl Blue 52.0 Solids 7 % Filter Cake 2.5 mm Salt 1 400 mg/L Cal. 60 mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m3 Rate L/min

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 6A HO-1 517 m 5.9 °N71W 1 RU & RD Size - mm 311 444 526 m 6.2 °N63W 2 Drill Actual 6.00 Type M5153 Hole opener m 3 Reaming 3.00

S.N. LC7182 m 4 Coring Jets - mm 3 x 17.5 3x11.1,1x14.3 m ° 5 Cond. Hole 0.25 Wt. - daN 5 - 6 000 1 000 m 6 Trips 5.50 r/min 340 100 m 7 Lubr. Rig 0.25 Out - m 547 In PUMP 8 Repair Rig In - m 524 Surface Liner Length 9 Cut Off D.L. 0.75 Metres 23 95 No. mm mm SPM 10 Dev. Survey 2.00 Hours 6.00 8 1 159 229 90 11 Wireline Log Condition 1-1-1 2 159 229 90 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

62 sxs Gel PP Output AV Power 15 Test BOP 2 sxs Bicarb kPa Umin m/min kW 16 DST 2 sxs SAPP 7 000 2 360 15 274 17 Plug Back 1 pail Acid 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 1.50

Drilling in Quebec City formation. 21 Handle Tool 4.75 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Directionally drilled pilot hole to 547 m KB. Unable to orientate motor because of dog legs. Tripped out bit #6A. Ran 444 mm hole opener with extension and bull nose. Began reaming 311 mm pilot hole to 444 m KB. Reaming at report time, ROP: 18.0 m/h.

ESTIMATED COSTS: DAILY $ 25 134 CUMULATIVE $ 852 978 SUPERVISOR C. Creelman

Page No. 34

J

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 0 °C Road Good Date 96 12 14

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 18

Depth 238 m Progress 143 m Hole Size 444 mm Status Reaming

Mud: Wt 1 115 kg/m' Visc. 52 s/L W.L. 12.0 cm3 pH 9.0 PV 32 mPa.s YP 3.5 Pa Gels 1/5 Pa

Methyl Blue 60.0 Solids 7.0 % Filter Cake 2 mm Salt 1 100 mg/L Cal. 40 mg/L

Desilter Underflow Wt. 1 420 kg/m' Rate 2 L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. 1 115 kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. 1 600 kg/m' Centrifuge Overflow Wt. 1 095 kg/m'

TIME DISTRIBUTION

BITS SURVEYS Code/Operation Hours

HO-2 m °N71W 1 RU & RD 444 m °N63W 2 Drill Actual Hole opener m • 3 Reaming 17.75

25-0/42 m • 4 Coring 3x11.1,1x25.0 m ° 5 Cond. Hole 6 000 m • 6 Trips 6.00 100 - 110 m • 7 Lubr. Rig 0.25 In PUMP 8 Repair Rig 238 Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 1 159 229 90 11 Wireline Log 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

20 sxs Gel PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST 6 000 2 360 15 235 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Opened 311 mm pilot hole to 444 mm to 98 m KB. Circulated. Tripped out and unplugged bull nose nozzle. Ran HO-1. Broke circulation and reamed. Opened 311 mm hole to 444 mm to 238 m KB. Circulated. Tripped out HO-1. Changed cutters and redressed. Ran HO-1. Hole tight at 152 m KB. Broke circulation, reaming back to bottom at report time.

ESTIMATED COSTS: DAILY $ 31 483 CUMULATIVE $ 884 461 SUPERVISOR C. Creelman

Page No. 35

No. Size - mm Type

HO-1 444 Hole opener

S.N. 25-0/42 Jets - mm 3x11.1, 1x14.3 Wt. - daN 6 - 7 000 r/min 100 - 110 Out - m 238 In - m Surface Metres 238 Hours 20.75 Condition 3-8-1

BITS

Liner Length 9 Cut Off D.L. No. mm mm SPM 10 Dev. Survey

11 Wireline Log 12 Run Csg/Cmt

1 159 229 100 2 159 229 100

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

80 s/L W.L. 20.0 Solids 5.4 % Filter Cake

kg/m' Rate kg/m' Rate

1 505 kg/m'

Mud: Wt 1 085 kg/m' Visc. Methyl Blue 56.0 Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

No. Size - mm Type

HO-2 444 Hole opener

S.N. 25-0/42 Jets - mm 3x11.1, 1x25.0 Wt. - daN 7 000 r/min 100 - 110 Out - m In In - m 238 Metres 138 Hours 18.00 Condition

DRILLING MUD ADDITIVES USED: 72 sxs Gel 2 sxs Bicarb

16 sxs Lignite 2 sxs Soda Ash

Date 96 12 15

Ralex, 1

Day No. 19 Reaming

cm' pH 12 PV 25 mPa.s YP 5 Pa Gels 16/60 Pa 3.0 mm Salt 1 100 mg/L Cal. Trace mg/L

Umin Desander Underflow Wt. kg/m' Rate L/min L/min Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. 1 070 kg/m'

TIME DISTRIBUTION SURVEYS Code/Operation Hours

m °N71W 1 RU & RD m 'N63W 2 Drill Actual 18.25 m 3 Reaming m 4 Coring

m 5 Cond. Hole 2.25 m 6 Trips 2.50 m 7 Lubr. Rig 0.50

PUMP 8 Repair Rig 0.50

13 Wait on Cmt

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST 7 000 2 620 17 223 17 Plug Back

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

Well GENOIL et al ST. LEONARD NO. 1 Rig

Depth 376 m Progress 444 mm Status 138 m Hole Size

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

Weather Cloudy Temp 0 °C Road

Good

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Opened 311 mm pilot hole to 444 mm to 345 m KB. Circulated and treated out cement contamination in drilling fluid. Reamed to 358 m KB. Circulated and treated out cement contamination. Reamed. Reaming at report time, ROP: ±7.0 m/h.

ESTIMATED COSTS: DAILY $ 30 045 CUMULATIVE $ 914 506 SUPERVISOR C. Creelman

Page No. 36

1

PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L. No. mm mm SPM 10 Dev. Survey

11 Wireline Log 12 Run Csg/Cmt

1 159 229 100 2 159 229 100

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 1

Well GENOIL et al ST. LEONARD NO. 1 Rig

Depth 410 m Progress 34 m Hole Size 444 mm Status

Mud: Wt 1 050 kg/m' Visc. 35 s/L W.L. 19.0

Methyl Blue 49.0 Solids 3.1 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. 1 590 kg/m'

Ralex, 1

Day No. 20 Reaming

°C Road Good Date 96 12 16

cm3 pH 12.4 PV 10 mPa.s YP 3 Pa Gels 1/11 Pa

2.0 mm Salt 1 300 mg/L Cal. Trace mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin

Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Overflow Wt. 1 045 kg/m'

No. HO-2 Size - mm 444 Type Hole opener S.N. 25-0142 Jets - mm 3x11.1, 1x25.0 Wt. - daN 7 000 r/min 110 Out - m 403 In - m 238 Metres 165 Hours 21.50 Condition 3-8-1

TIME DISTRIBUTION SURVEYS Code/Operation Hours

m 1 RU & RD m 2 Drill Actual 7.75 m 3 Reaming 8.00 m 4 Coring m 5 Cond. Hole 2.00 m 6 Trips 6.00 m 7 Lubr. Rig 0.25

BITS HO-3 444 Hole opener 25-0142 3x11.1, 1x25.0 4 000 80 In 403 7 1.00

13 Wait on Cmt DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up

10 sxs Gel

PP Output AV Power 15 Test BOP 4 pails Acid

kPa Umin m/min kW 16 DST 19 sxs Bicarb

7 500 2 620 17 326 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed 311 mm pilot hole to 444 mm to 403 m KB. Circulated. Tripped out hole opener #2. Changed cutters and redressed hole opener. Ran hole opener #3. Reamed from 150 m to 403 m KB on trip in. Reaming at report time, ROP: 4.0 m/h.

Conducted safety meeting.

ESTIMATED COSTS: DAILY $ 29 817 CUMULATIVE $ 944 323 SUPERVISOR

C. Creelman

Page No. 37

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Date 96 12 17 1 'C Road Good Weather Cloudy Temp Day No. 21 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

444 mm Status Drilling Depth 490 m Progress 80 m Hole Size

Mud: Wt 1 090 kg/m3 Visc. 42 s/L W.L. 14.0

Methyl Blue 52.0 Solids 5.7 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. 1 580 kg/m3

cm3 pH 9.0 PV 18 mPa.s YP 4 Pa Gels 1/5 Pa

2.0 mm Salt 1 200 mg/L Cal. 40 mg/L

Umin Desander Underflow Wt. kg/m3 Rate Umin

Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. 1 055 kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. HO-3 HO-4 m 1 RU&RD

Size - mm 444 444 m 2 Drill Actual 13.50

Type Hole opener Hole opener m 3 Reaming 5.50

S.N. 25-0142 AZ-100X m 4 Coring

Jets - mm 3x11.1, 1x25.0 3x19.0, 1x25.0 m 5 Cond. Hole

Wt. - daN 5 000 6-7000 m 6 Trips 4.75

r/min 80-110 110 m ° 7 Lubr. Rig 0.25 Out - m 441 In PUMP 8 Repair Rig

In - m 403 441 Liner Length 9 Cut Off D.L. Metres 38 49 No. mm mm SPM 10 Dev. Survey Hours 10.00 9.00 1 159 229 100 11 Wireline Log Condition 1-6-1 2 159 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

43 sxs Gel PP Output AV Power 15 Test BOP 1 pail Acid kPa Umin m/min kW 16 DST

8 000 2 620 17.0 349 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed 311 mm pilot hole to 444 mm to 441 m KB. Experienced increased torque and slow ROP. Tripped out hole opener #3. Found Insert cutters damaged and worn. Ran hole opener #4. Broke circulation and washed/reamed 10 m to bottom. Reaming pilot hole at report time. ROP: ±3.0 m/h.

ESTIMATED COSTS: DAILY $ 27 628 CUMULATIVE $ 971 951 SUPERVISOR C. Creelman

Page No. 38

4 BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Cloudy Temp 5 °C Road

Good

Date 96 12 18

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 22

Depth 493 m Progress 3 m Hole Size 444 mm Status Tripping

Mud: Wt 1 080 kg/m3 Visc. 40 s/L W.L. 16.0 cm3 pH 9.0 PV 15 mPa.s YP 3 Pa Gels 1/6 Pa

Methyl Blue 52.0 Solids 5.0 % Filter Cake 2.0 mm Salt 1 200 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate L/min

Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. HO-4 4A (RR) 526 m 6 1 RU & RD Size - mm 444 311 542 m 7 2 Drill Actual 6.50 Type Hole opener MFDSH m 3 Reaming 3.25 S.N. AZ-100X LH9115 m 4 Coring Jets - mm 3x19.0, 1x25.0 3 x 17.5 m 5 Cond. Hole 1.00 Wt. - daN 6 - 7 000 m 6 Trips 6.00 r/min 110 m 7 Lubr. Rig 0.25 Out - m 493 Clean PUMP 8 Repair Rig In - m 441 Out Liner Length 9 Cut Off D.L. Metres 52 Trip No. mm mm SPM 10 Dev. Survey 1.00 Hours 6.50 1 159 229 11 Wireline Log Condition 6-6-4 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

62 sxs Gel PP Output AV Power 15 Test BOP 2 pails Acid kPa L/min m/min kW 16 DST

2 sxs Bicarb 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 Worked Tight 24 Hole 2.25 25 Levelled Rig 3.75

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed 311 mm pilot hole to 444 mm to 473 m KB. Hole very tight. Worked tight hole from 490 m to 470 m KB (±30 000 daN overpull). Worked and reamed tight hole until clean. Tripped out HO-4. Ran bit #4A. Broke circulation, washed and cleaned fill from 532 m to 547 m KB. Levelled drilling rig. Ran drift surveys on bottom. Tripped out bit #4A. Preparing to run open ended drillpipe.

Plan to set 67 m cement plug from 547 m to 480 m KB due to deviation increase. Will redrill using MWD instead of single shot. Also plan to ream section from 413 m to 470 m KB.

ESTIMATED COSTS: DAILY $ 23 104 CUMULATIVE $ 995 055 SUPERVISOR C. Creelman

Page No. 39

1

ESTIMATED COSTS: DAILY $ 28 086 CUMULATIVE $ 1 023 141 SUPERVISOR C. Creelman

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 0 °C Road Good Date 96 12 19

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 23

Depth 493 m Progress 0 m Hole Size 444 mm Status WOC

Mud: Wt 1 050 kg/m3 Visc. 38 s/L W.L. 19.0 cm3 pH 9.0 PV 10 mPa.s YP 2 Pa Gels 1/10 Pa

Methyl Blue 48.0 Solids 3.1 % Filter Cake 2.0 mm Salt 1 300 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 7A (RT) m 1 RU & RD

Size - mm 444 m 2 Drill Actual

Type 544 m 3 Reaming S.N. 640248 m 4 Coring

Jets - mm Open m 5 Cond. Hole 10.50 Wt. - daN m 6 Trips 11.50 r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt 0.75 DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

23 sxs Gel 1 sx Lime PP Output AV Power 15 Test BOP 2 pails Acid kPa Umin m/min kW 16 DST 15 sxs Bicarb 17 Plug Back 1.25 15 sxs Lignite 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Drilling in Quebec City formation. 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran 114 mm OD drillpipe open ended. Landed at 546 m KB. Circulated to condition mud and hole. Rigged in cementers. Pressure tested surface lines to 21 000 kPa, okay. Held safety meeting. Ran plug #2: 547 m to 480 m KB with 9.0 m3 Class "G" + 2.0 CaCI, + 0.75% TIC at 2090 kg/m3 slurry density. Plug down at 21:45, 96 12 18. Pulled drillpipe to 435 m KB. Circulated, recovered 2.0 m3 water and 2.0 m3 clobbered mud. WOC. Tripped out. Slipped and cut line. Running bit #7A at report time to survey and tap cement plug.

Attached is a directional survey listing from 0 to 526 m KB (MD).

Page No. 40

SURVEYS 413 m 5.2 422 m 5.1 ° 432 m 3.9 ° 441 m 2.1 '

m m °

BITS

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowinq Temp -2 'C Road Good Date 96 12 20

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 24

Depth 485 m Progress 12 m Hole Size 444 mm Status WO Equipment

Mud: Wt 1 050 kg/m' Visc. 40 s/L W.L. 25.0 cm3 pH 12.0 PV 10 mPa.s YP 15 Pa Gels 30/35 Pa

Methyl Blue 50.0 Solids 5.0 % Filter Cake 2.0 mm Salt 1 200 mg/L Cal. 20 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 2.00 3 Reaming 4 Coring 5 Cond. Hole 10.50 6 Trips 7.75

m ° 7 Lubr. Rig PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L. 1.00 No. mm mm SPM 10 Dev. Survey 2.75

11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 9 sxs Lignite PP Output AV Power 15 Test BOP

6 pails Acid kPa Umin m/min kW 16 DST 19 sxs Bicarb 8 000 2 800 19 373 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with bit #7A. Circulated and treated contaminated mud to 460 m KB. Reran drift surveys from 473 m to 413 m KB. Circulated and WOC. Tagged top of plug #2 at 273 m KB (8.0 m high to theoretical top) at 21:45, 96 12 19. Drilled cement from 473 m to 485 m KB at 15 min/m. Circulating and WO MWD equipment to arrive (ETA is 06:00, 96 12 21).

Plan to kick off and directionally drill from 493 m KB until approximately 20 m to 20 m of straight hole is accomplished.

ESTIMATED COSTS: DAILY $ 46 848 CUMULATIVE $ 1 069 989 SUPERVISOR C. Creelman

Page No. 41

No. 7A (RT) Size - mm 444 Type S44 S.N. 640248 Jets - mm Open Wt. - daN 5 000 r/min 80 Out - m In In - m 473 Metres 12 Hours 2.00 Condition

1 159 229 100 2 159 229 100

J

BISSETT RESOURCE CONSULTANTS LTD. Cli

DAILY DRILLING REPORT

Weather Clear Temp -10 °C Road Good Date 96 12 21

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 25

Depth 485 m Progress 0 m Hole Size 444 mm Status WO Equipment

Mud: Wt 1 050 kg/m' Visc. 37 s/L W.L. 25.0 cm3 pH 12.0 PV 8 mPa.s YP 11 Pa Gels 7/7 Pa

Methyl Blue 46.0 Solids 4.0 % Filter Cake 2.0 mm Salt 1 200 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. 1 200 kg/m' Centrifuge Overflow Wt. 1 040 kg/m'

TIME DISTRIBUTION

BITS SURVEYS Code/Operation Hours

No. 7A (RT) m • 1 RU & RD Size - mm 444 m • 2 Drill Actual 1.50 Type 544 m ° 3 Reaming 4.50 S.N. 640248 m • 4 Coring Jets - mm Open m ° 5 Cond. Hole 11.75 Wt. - daN 5 000 m • 6 Trips 6.00 r/min 90 m c 7 Lubr. Rig 0.25 Out - m 485 PUMP 8 Repair Rig In - m 473 Liner Length 9 Cut Off D.L. Metres 12.0 No. mm mm SPM 10 Dev. Survey Hours 3.50 1 159 229 100 11 Wireline Log Condition Drill cement 2 159 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa L./min m/min kW 16 DST 7 000 2 600 17 303 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) WO MWD equipment. Tripped out bit #7A. Laid down 229 mm OD monel and 444 mm nonrotating stabilizer. Ran bit #7A and IB stabilizer. Reamed stabilizer from 400 m to 475 m KB, low torque and no problems. Circulated to condition mud and hole. Tripping out at report time to pick up MWD tools. Tool arrival time is ±07:00, 96 12 21.

ESTIMATED COSTS: DAILY $ 19 755 CUMULATIVE $ 1 089 744 SUPERVISOR C. Creelman

Page No. 42

J

No. 8A Size - mm 311 Type MFDSH S.N. LD 7277 Jets - mm 3 x 15.9 Wt. - daN 1 000 r/min 130 Out - m In In - m 485 Metres 6.0 Hours 5.00 Condition

BITS SURVEYS 21 m 1.00 30 m 1.00

403 m 3.80 413 m 4.40 422 m 4.30 432 m 3.40 441 m 2.30

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

DRILLING MUD ADDITIVES USED:

HYDRAULIC PP

Output AV kPa

Umin m/min 10 500

2 200 14

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

Cli BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 'C Road Good

Date 96 12 22

Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex 1 Day No. 26

Depth 491 m Progress 6 m Hole Size 311 mm Status Drilling

Mud: Wt 1 040 kg/m' Visc. 37 s/L W.L. 25.0 cm' pH 11.5 PV 7 mPa.s YP 5 Pa Gels 3/7 Pa

Methyl Blue 44.0 Solids 4.0 °A) Filter Cake 2.0 mm Salt 1 000 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1 200 kg/m' Centrifuge Overflow Wt. 1 030 kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 4.00

'356 3 Reaming °356 4 Coring °2.3 5 Cond. Hole 8.50 *5.6 6 Trips 10.50 '9.0 7 Lubr. Rig 0.25

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 0.75 100 11 Wireline Log 85 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

385 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, Unloaded, rigged up and tested MWD equipment. Ran bit #8A, 228 mm low speed mud motor with 2.1° from 410 m to 441 m KB. Orientated and drilled 100% cement from 485 m to 486 m KB, from 486 m to formation begin drilled. Tripped out bit #8A. Changed bent housing from 2.10° to 1.80° setting. Tripped no fill. Orientated, directional drilling at 1.0 m/h, samples show 100% formation. NOTE: Surveys are 17

description of drill string, etc.) bent housing. Checked surveys

489 m KB, samples indicate 100% in bit #8A, washed 10 m to bottom, m behind the bit.

Refer to the attached survey list for current directional data.

ESTIMATED COSTS: DAILY $ 42 406

CUMULATIVE $ 1 132 149 SUPERVISOR

C. Creelman

Page No. 43

J

ESTIMATED COSTS: DAILY $ 34 258 CUMULATIVE $ 1 166 407 SUPERVISOR C. Creelman

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -3 'C Road Good Date 96 12 23

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 27

Depth 507 m Progress 16 m Hole Size 311 mm Status Tripping

Mud: Wt 1 045 kg/m3 Visc. 43 s/L W.L. 25.0 cm3 pH 11.0 PV 10 mPa.s YP 7 Pa Gels 10/20 Pa

Methyl Blue 50.0 Solids 2.0 % Filter Cake 2.0 mm Salt 1 000 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. 1 200 kg/m3 Centrifuge Overflow Wt. 1 040 kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A HO-5 451 m 1.30 °341.0 1 RU & RD Size - mm 311 444 460 m 1.00 °306.8 2 Drill Actual 9.00 Type MFDSH Hole opener 467 m 1.30 '296.0 3 Reaming

S.N. LD 7277 479 m 0.90 °289.2 4 Coring

Jets - mm 3 x 15.9 m 5 Cond. Hole 0.25 Wt. - daN 2 000 5 000 m 6 Trips 13.50 r/min 150 90 m 7 Lubr. Rig Out - m 507 499 PUMP 8 Repair Rig In - m 485 485 Liner Length 9 Cut Off D.L. Metres 22 14 No. mm mm SPM 10 Dev. Survey 1.25 Hours 13.00 5.50 1 159 229 100 11 Wireline Log Condition 1-1-1 2 159 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

40 sxs Gel PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

10 000 2 600 17 433 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Directionally drilled 311 mm pilot hole to 507 m KB. Tripped out bit #8A, laid down 228 mm OD mud motor and MWD. Ran 444 mm HO-5. Broke circulation and opened 311 mm hole to 444 mm from 485 m to 499 m KB. Hole opener quit drilling at 499 m KB. Circulated bottoms up. Tripping out hole opener at report time.

Page No. 44

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 0 °C Road Good Date 96 12 24

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 28

Depth 507 m Progress 0 m Hole Size 311 mm Status Tripping

Mud: Wt 1 040 kg/m' Visc. 42 s/L W.L. 25.0 cm' pH 11.0 PV 10 mPa.s YP 6 Pa Gels 8/18 Pa

Methyl Blue 48.0 Solids 3.0 % Filter Cake 2.0 mm Salt 1 000 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt, kg/m' Rate Umin

Centrifuge Underflow Wt. 1 200 kg/m' Centrifuge Overflow Wt. 1 040 kg/m'

BITS SURVEYS

TIME DISTRIBUTION Code/Operation Hours

No. 8A (RR) 8A (RR) 489 m 0.3 °263.2 1 RU & RD

Size - mm 311 311 501 m 0.3 0 177.8 2 Drill Actual 5.50

Type MFDSH MFDSH m 3 Reaming 1.00

S.N. LD 7277 LD7277 m 4 Coring

Jets - mm 3 x 15.9 3 x 15.9 m 5 Cond. Hole 0.50 Wt. - daN 4 000 m 6 Trips 14.50 r/min 80 m 7 Lubr. Rig

Out - m 507 PUMP 8 Repair Rig In - m 485 507 Liner Length 9 Cut Off D.L.

Metres 22 No. mm mm SPM 10 Dev. Survey 2.50 Hours 1.00 1 159 229 100 11 Wireline Log Condition 1-1-1 2 159 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

20 sxs Gel PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

10 000 2 600 17 433 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out hole opener #5 (appears bull nose has been in the formation). Ran bit #8A and near bit stabilizer. Reamed 311 mm hole from 499 m to 507 m KB, no problem reaming. Ran single shot survey, unable to get survey tool into monel collar. Dropped Totco survey tool and tripped out. Found survey barrel in drill collar 25 m above the bit (Totco ring). Tripped in bit #8A with near bit stabilizer. Circulated and ran single shot survey at 501 m KB. Tripped out bit #8A. Ran bit #8A and stiff rotary drilling assembly. Tripping in at report time.

Plan to rotary drill to surface casing point.

ESTIMATED COSTS: DAILY $ 25 249 CUMULATIVE $ 1 119 656 SUPERVISOR C. Creelman

Page No. 45

1

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -13 °C Road Good Date 96 12 25

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 29

Depth 552 m Progress 45 m Hole Size 311 mm Status Drilling

Mud: Wt 1 060 kg/m' Visc. 56 s/L W.L. 20.0 cm' pH 9.5 PV 15 mPa.s YP 6 Pa Gels 2/22 Pa

Methyl Blue 50.0 Solids 4.0 % Filter Cake 2.0 mm Salt 1 000 mg/L Cal. Trace mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1 210 kg/m' Centrifuge Overflow Wt. 1 040 kg/m'

TIME DISTRIBUTION

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with bit #8A. Broke circulation reamed hole and cleaned 17 m fill. Drilled 311 mm pilot hole. Drilled to 525 m KB. Finished tripping in with bit #8A. Broke circulation reamed hole and cleaned 17 m fill. Drilled 311 mm pilot hole. Drilled to 525 m KB. Held safety meeting. Drilling at report time, ROP: ±3.0 m/h. Held safety meeting. Drilling at report time, ROP: ±3.0 m/h.

Hole drag: 2 000 daN up Hole drag: 2 000 daN up

NOTE: Rained hard last night, roads very treacherous. NOTE: Rained hard last night, roads very treacherous.

MERRY CHRISTMAS!! MERRY CHRISTMAS!!

ESTIMATED COSTS: DAILY $ ESTIMATED COSTS: DAILY $ 27 226 CUMULATIVE $ 1 218 882 SUPERVISOR C. Creelman 27 226 CUMULATIVE $ 1 218 882 SUPERVISOR C. Creelman

Page No. 46 Page No. 46 Page No. 46

1

14 Nipple Up 37 sxs Gel PP Output AV Power 15 Test BOP 7 pails Acid kPa Umin m/min kW 16 DST

10 000 2 600 17 433 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

1

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Date 96 12 26 Weather Well Rig Ralex, 1 Day No. 30

Clear Temp -15 0 C Road Good GENOIL et al ST. LEONARD NO. 1

311 mm Status Underreaming 21 m Hole Size Depth 573 m Progress

m • 5 Cond. Hole 1.25 1 x 30

DRILLING MUD ADDITIVES USED: 56 sxs Gel 1 pail Acid

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Test UR 4.50 24 25

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

13 Wait on Cmt

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 9 000 2 600 15 390 17 Plug Back

cm3 pH 9.0 PV 18 mPa.s YP 8 Pa Gels 4/24 Pa

2.0 mm Salt 1 100 mg/L Cal. Trace mg/L

Desander Underflow Wt. kg/m' Rate Umin

Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. 1 050 kg/m'

Mud: Wt 1 060 kg/m' Visc. 60 s/L W.L. 15.0 Methyl Blue 56.0 Solids 4.0 % Filter Cake Desilter Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1 220 kg/m'

No. 8A (RR) Size - mm 311 Type MFDSH S.N. LD 7277 Jets - mm 3 x 15.9 Wt. - daN 5 000 r/min 100 Out - m 573 In - m 507 Metres 66 Hours 26.25 Condition 2-3-1

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

UR-1 550 m 0.25 • 1 RU & RD 558 560 m 0.25 ° 2 Drill Actual 12.75 RTU 570 m 0.25 • 3 Reaming 6 310 m • 4 Coring

4 000 m ° 6 Trips 3.75 85 m 0 7 Lubr. Rig 0.50

PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 1.25 5.00 1 159 229 100 11 Wireline Log

2 159 229 100 12 Run Csg/Cmt

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled 311 mm pilot hole. Drilled to 573 m KB (surface casing point). Circulated to condition mud and hole. Tripped out bit #8A. Picked up, made up and tested 558 mm underreamer. Tool malfunctioned. Stripped down underreamer. Found test plug inside tool. Reassembled and retested tool, okay. Ran UR-1. Broke circulation and underreamed 444 mm hole to 558 mm hole across dogleg from 430 m to 459 m KB. Circulated to condition mud and hole. Held safety meeting with service hands. Pulled and positioned underreamer at 400 m KB. Started underreaming. Underreaming at 404 m KB at report time.

ESTIMATED COSTS: DAILY $ 31 511 CUMULATIVE $ 1 250 392 SUPERVISOR C. Creelman

Page No. 47

J

ESTIMATED COSTS: DAILY $ 29 520 CUMULATIVE $ 1 279 922 SUPERVISOR C. Creelman

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 2.00 23 24 25

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

TIME DISTRIBUTION Code/Operation Hours

°S5W 1 RU & RD 2 Drill Actual 3 Reaming 8.00 4 Coring 5 Cond. Hole 6 Trips 14.00 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 110 11 Wireline Log 110 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

507 17 Plug Back

No. UR-1 Size - mm 558 Type RTU S.N. 6 310 Jets - mm 1 x 30 Wt. - daN 4 000 r/min 85 Out - m 459 In - m 430 Metres 29 Hours 7.00 Condition 1-1-1

DRILLING MUD ADDITIVES USED: 53 sxs Gel

467 462 5 2.00 1-1-1

3x19.0,1x25.0 3 x 17.5

SURVEYS 527 m 0.25

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

MFDSH LH9115

4A (RR) 311

1 000 100 Clean Out Trip

HYDRAULIC PP Output AV kPa Umin m/min

10 500 2 900 12

m m m m m m

BITS HO-6 444 Hole opener 250142

Page No. 48

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Underreamed 444 mm hole to 558 mm hole from 404 m to 430 m KB. Total underreamed section: 400 m to 459 m KB. Tripped out underreamer - #1. Ran HO-6, tagged bridge at 470 m KB. Broke circulation, cleaned and reamed from 462 m to 467 m KB. Unable to work hole opener below 467 m KB. Tripped out HO-1, found bull nose plugged. Ran bit #4A and near bit combo-stabilizer. Broke circulation and cleaned underreaming debris from 467 m to 501 m KB. Washed from 501 m to 573 m KB. Circulating at report time to condition mud and hole.

Plan to open 311 mm pilot hole from 501 m to 573 m KB. Surface casing will then be run and cemented.

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -1

°C Road Good

Date 96 12 27

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Day No. 31

Depth 573 m Progress 0 m Hole Size Mud: Wt 1 060 kg/m' Visc. 67 s/L W.L. 15.0 Methyl Blue 56.0 Solids 4.0 % Filter Cake

Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

311 mm Status Circulating

cm' pH 9.0 PV 19 mPa.s YP 8 Pa Gels 4/20 Pa

2.0 mm Salt 1 000 mg/L Cal. 40 mg/L

L/min Desander Underflow Wt. kg/m' Rate L/min

Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. HO-7 m

Size - mm 444 m

Type Hole opener m

S.N. m

Jets - mm 3x11.1,1x25.0 m

Wt. - daN 6 000 m

r/min 90 m

Out - m In PUMP In - m 499 Liner Length Metres 10 No. mm mm Hours 2.00 1 159 229 Condition 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC PP Output AV kPa Umin m/min 9 500 3 000 12

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

TIME DISTRIBUTION Code/Operation Hours 1 2

RU & RD Drill Actual

3 Reaming 3.00 4 Coring 5 Cond. Hole 0.25 6 Trips 5.50 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 0.25 116 11 Wireline Log 116 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

475 17 Plug Back 18 Squeeze Cmt 19 Fishing 15.00 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated. Ran drift survey. When pulling off bottom, driller was not watching weight indicator and parted drill string. No personnel hurt. Tripped out, found drillpipe parted in slip area. Top of fish at 167 m KB. Made up and ran 298 mm x 114 mm overshot. Tagged top of fish at ±165 m KB. Latched onto fish, broke circulation through fish. Circulated to condition mud and hole. Tripped out. Laid down 11 stands 114.3 mm OD drillpipe and 7 joints 114.3 mm OD HWDP. Picked up new drillpipe. Made up and ran HO-7. Broke circulation and washed from 400 m to 499 m KB. Started opening 311 mm pilot hole to 444 mm hole. Reaming at report time, ROP: 3.5 m/h.

ESTIMATED COSTS: DAILY $

41 575 CUMULATIVE $ 1 321 497 SUPERVISOR C. Creelman

Page No. 49

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -6 °C Road Good Date 96 12 28

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 32

Depth 509 m Progress 10 m Hole Size 444 mm Status Reaming

Mud: Wt 1 065 kg/m' Visc. 53 s/L W.L. 14.0 cm3 pH 9.0 PV 17 mPa.s YP 7 Pa Gels 3/6 Pa

Methyl Blue 50.0 Solids 4.0 % Filter Cake 2.0 mm Salt 1 000 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1 230 kg/m' Centrifuge Overflow Wt. 1 060 kg/m'

Day No. 33 Rig Ralex, 1 444 mm Status Tripping

Page No. 50

IC BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Depth 555 m Progress 46 m Hole Size Mud: Wt 1 070 kg/m' Visc. 53 s/L W.L. 14.0

Methyl Blue 54.0 Solids 4.0 % Filter Cake

Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. 1 770 kg/m3

Good

cm3 pH 9.0 PV 28 mPa.s YP 8 Pa Gels 4/6 Pa

2.0 mm Salt 1 000 mg/L Cal. 40 mg/L

Umin Desander Underflow Wt. kg/m3 Rate Umin

Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. 1 060 kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. HO-7 m 1 RU & RD

Size - mm 444 m 2 Drill Actual

Type Hole opener m 3 Reaming 18.50

S.N. m 4 Coring

Jets - mm 3x111,1 x25.0 m 5 Cond. Hole Wt. - daN 6 000 m 6 Trips 5.50 r/min 90 m 7 Lubr. Rig

Out - m 555 PUMP 8 Repair Rig In - m 499 Liner Length 9 Cut Off D.L. Metres 56 No. mm mm SPM 10 Dev. Survey Hours 21.25 1 159 229 116 11 Wireline Log Condition 2-7-1 2 159 229 116 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 sxs Soda Ash PP Output AV Power 15 Test BOP 6 sxs Kelzan kPa Umin m/min kW 16 DST

59 sxs Gel 9 500 3 000 15/13 475 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed 311 mm pilot hole to 444 m KB. Reamed to 555 m KB, ROP decreased to 2.0 m/h. Tripped out hole opener-7. Laid down 2 - 171 mm drill collars because of damaged seal area. Changing cutters in hole opener at report time.

ESTIMATED COSTS: DAILY $ CUMULATIVE $ 1 370 885 SUPERVISOR C. Creelman/M. Kramps

Date 96 12 29 Weather Raining Temp Well GENOIL et al ST. LEONARD NO. 1

49 388

J

2 °C Road

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Snowing Temp -10 °C Road Good Date 96 12 30

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 34

Depth 571 m Progress 16 m Hole Size 444 mm Status Tripping

Mud: Wt 1 085 kg/m3 Visc. 70 s/L W.L. 11.0 cm' pH 9.0 PV 32 mPa.s YP 12 Pa Gels 5/9 Pa

Methyl Blue 63.0 Solids 5.0 % Filter Cake 2.0 mm Salt 900 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. 1 780 kg/m3 Centrifuge Overflow Wt. 1 075 kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. HO-8 HO-9 460 m 1.60 1 RU & RD Size - mm 444 444 451 m 1.70 2 Drill Actual Type Hole opener Hole opener 441 m 2.30 3 Reaming 8.00 S.N. 432 m 3.20 4 Coring Jets - mm 3x11.1,1x25.0 3x11.1,1x25.0 422 m 4.00 5 Cond. Hole 3.25 Wt. - daN 6 000 6 000 m 6 Trips 10.25 r/min 90 90 m 7 Lubr. Rig Out - m 555 571 PUMP 8 Repair Rig In - m 499 555 Liner Length 9 Cut Off D.L. Metres 56 16 No. mm mm SPM 10 Dev. Survey 2.50 Hours 21.25 8.00 1 159 229 116 11 Wireline Log Condition 2-7-1 2 159 229 116 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

51 sxs Gel PP Output AV Power 15 Test BOP 2 sxs Caustic kPa Umin m/min kW 16 DST

9 500 3 000 15/13 475 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Laid down 1 - 228 mm drill collar. Changed out cutters on hole opener. Tripped in HO-9. Broke circulation and washed 30 m to bottom, no fill. Reamed 311 mm pilot hole to 444 mm hole to 571 m KB (casing point). Circulated to condition mud and hole. Tripped out HO-9, ran drift surveys on trip out. Double strapped drill string, 0.00 m difference, no correction. Unable to break out 305 mm square drill collars. Stood same in derrick. Tripped in with HO-9, no fill. Circulated to condition mud and hole . Tripped out HO-9, laying down 444 mm drilling tools at report time. Will run surface casing once tools are laid down.

ESTIMATED COSTS: DAILY $

33 147 CUMULATIVE $ 1 404 032 SUPERVISOR Mike Kramps

Page No. 51

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Clear Temp -22 °C Road Good Date 96 12 31

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 35

Depth 571 m Progress 0 m Hole Size 444 mm Status WOC

Mud: Wt 1 090 kg/m' Visc. 45 s/L W.L. 12.0 cm3 pH 9.0 PV 23 mPa.s YP 5 Pa Gels 3/6 Pa

Methyl Blue 54.0 Solids 5.0 % Filter Cake 2.0 mm Salt 900 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. HO-9 m

Size - mm 444 m

Type Hole opener m

S.N. m

Jets - mm 3x11.1,1x25.0 m Wt. - daN 6 000 m r/min 90 m Out - m 571 PUMP In - m 555 Liner Length Metres 16 No. mm mm Hours 8.00 1 159 229 Condition 2-4-1 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 20 sxs Gel PP Output AV 3 sxs Lignite kPa Umin m/min 2 sxs Bicarb 300 1 300 22

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Drilling in Quebec City formation.

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5

RU & RD Drill Actual Reaming Coring Cond. Hole

6 Trips 1.00 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 100 11 Wireline Log

12 Run Csg/Cmt 19.50 13 Wait on Cmt 3.50 14 Nipple Up

Power 15 Test BOP kW 16 DST

7 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished laying down drilling tools. Held safety meeting. Rigged to run casing. Ran 45 joints 339.8 mm OD (570.03 m )90.8 kg/m K55 R3 8RD ST&C new casing. Landed at 569.52 m KB. Circulated to condition mud . Rigged in cementers. Held safety meeting. Pressure tested surface equipment to 20 000 kPa, okay. Spearheaded with 10.0 m' fresh water. Cemented using 85.6 tonnes Class "G" cement at 1 900 kg/m' slurry density. Bumped plug with 10 000 kPa. Floats held okay. Plug down at 02:15, 96 12 31. Approximately 10.0 m' cement returns. Rigged out cementers. Landed casing holding 100% string weight. WOC at report time.

ESTIMATED COSTS: DAILY $ 116 097 CUMULATIVE $ 1 520 129 SUPERVISOR Mike Kramps

Page No. 52

ESTIMATED COSTS: DAILY $ 96 607 CUMULATIVE $ 1 616 736 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -20 'C Road Good Date 97 01 01

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 36

Depth 571 m Progress m Hole Size mm Status Heading up

Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt 7.00 DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 17.00

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) WOC. Slacked off at 13:00, 96 12 31 (10.75 hours after bumping plug). Cut of 508 mm OD conductor barrel and 339.8 mm OD surface casing. Installed 346 mm x 340 mm 21 000 kPa WP slip on bowl with 2 - 52.4 mm 21 000 kPa studded side outlets. Pressure tested welds to 10 500 kPa for 10 minutes, okay. Started installing well control equipment. Installing well control equipment at report time.

Page No. 53

1

ESTIMATED COSTS: DAILY $ 21 194 CUMULATIVE $ 1 637 930 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -12 °C Road Good Date 97 01 02

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 37

Depth 571 m Progress 0 m Hole Size mm Status Heading up

Mud: Wt kg/m3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate 1../min Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 24.00

PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Elevations: 21 Handle Tool 72.0 m GL 22 Clean to Btm 72.0 m CF 23 79.3 m KB 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to install well control equipment and associated air drilling equipment. Improper intermediate casing spool was installed, changed out same. Welding and installing flare line spools and blouie line connections at report time.

Page No. 54

Visc. Solids

Well Depth 571 m Progress Mud: Wt kg/m3 Methyl Blue Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

LEONARD NO. 1 GENOIL et al ST. Rig Ralex, 1 Day No. 38

CI BISSETT RESOURCE CONSULTANTS LTD. $+

DAILY DRILLING REPORT

Weather Snowing Temp -6 °C Road Date 97 01 03

0 m Hole Size mm Status Fishing

s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

% Filter Cake mm Salt mg/L Cal. mg/L

kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

kg/m3 Centrifuge Overflow Wt. kg/m3

No. BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6

RU & RD

Size - mm m Drill Actual Type m Reaming S.N. m Coring Jets - mm m Cond. Hole Wt. - daN m Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig 3.00 In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 60 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 13.00

PP Output AV Power 15 Test BOP 1.00 kPa Umin m/min kW 16 DST

200 780 3 17 Plug Back 18 Squeeze Cmt 19 Fishing 7.00

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished installing well control equipment. NOTE: Dropped 41 mm x 178 mm stud down casing when installing BOP stack, Had to reposition blouie line around mouse hole. Welded spools for line from BOP stack to manifold. Function tested BOP components, made changes as required, okay. Attempted to pressure test, test valve leaking on stand pipe, repaired same. Pressure tested casing bowl, casing and blind rams to 1 400 kPa low and 10 500 kPa high for 10 minutes each, okay. Picked up and ran 292 mm skirted magnet. Worked magnet on bottom. Tripped out 292 mm skirted magnet - no recovery. Reran 292 mm skirted magnet, broke circulation and working magnet on bottom at report time.

ESTIMATED COSTS: DAILY $ 21 148 CUMULATIVE $ 1 659 078 SUPERVISOR Mike Kramps

Page No. 55

Good

Good Date 97 01 04 Weather Clear Temp -6 °C Road

ESTIMATED COSTS: DAILY $ 22 108 CUMULATIVE $ 1 681 186 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 39

Depth 579 m Progress 6 m Hole Size 311 mm Status Blowing hole dry

Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A (RR) m 1 RU & RD

Size - mm 311 m 2 Drill Actual 1.00 Type MFDSH m 3 Reaming

S.N. LD7277 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 1.50 Wt. - daN 2 000 m 6 Trips 2.00 r/min 80 m 7 Lubr. Rig Out - m In PUMP 8 Repair Rig 1.00 In - m 573 Liner Length 9 Cut Off D.L. 1.00 Metres 6.00 No. mm mm SPM 10 Dev. Survey Hours 1.00 1 159 229 110 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP 9.50 kPa Umin m/min kW 16 DST 4 500 1 430 107 17 Plug Back

18 Squeeze Cmt 19 Fishing 2.50

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Air Calculation Rate at Report Time: 21 Handle Tool 73 m'/min (2 600 scfm) at 2 758 kPa (400 psi) 22 Clean to Btm

23 Drill Out 2.75 24 Fit 1.25 25 Blow Hole 1.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped out 292 mm skirted magnet. Recovered 41 mm x 78 mm stud. Attempted to run test plug, unsuccessful passing through annular preventer. Laid down test plug. Ran bit #8A (RR). Tagged float collar at 555 m KB. Broke circulation and displaced casing to fresh water. Pressure tested annular preventer to 1 400 kPa low and 10 500 kPa high for 10 minutes each, okay. Pressure tested pipe rams, casing, casing bowl, well control lines, manifold, kelly, safety valves, inside BOP and kelly cocks to 1 400 kPa low and 14 000 kPa high for 10 minutes each. Repaired numerous leaks and retested, okay. Drilled out cement. Drilled to 579 m KB. Ran formation integrity test, no leak-off observed to a pressure gradient of 22.0 kPa/m at the surface casing shoe. Terminated test. Rigged in air equipment. Unloaded water from casing. Blowing casing at report time with air to dry same.

Page No. 56

ESTIMATED COSTS: DAILY $ 54 859 CUMULATIVE $ 1 736 770 SUPERVISOR Mike Kramps

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 0 'C Road Good Date 97 01 05

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 40

Depth 628 m Progress 49 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A (RR) 1 582 m 1.3 °n/a 1 RU & RD

Size - mm 311 311 590 m 1.3 '358 2 Drill Actual 10.50 Type MFDSH H4552 m ° 3 Reaming S.N. LD7277 K56931 m ° 4 Coring Jets - mm 3 x 15.1 3 x 19.0 m 5 Cond. Hole Wt. - daN 2 000 1 000 m 6 Trips 3.50 r/min 80 35 m 7 Lubr. Rig Out - m 582 In PUMP 8 Repair Rig In - m 573 582 Liner Length 9 Cut Off D.L. 1.00 Metres 9.00 46 No. mm mm SPM 10 Dev. Survey 0.50 Hours 3.00 8.50 1 159 229 110 11 Wireline Log Condition 2-2-1 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 1.50

PP Output AV Power 15 Test BOP 1.00 kPa Umin m/min kW 16 DST 4 500 1 430 - 107 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool 0.25

22 Clean to Btm Air Calculation Rate at Report Time: 23 Dry Hole 5.75 73.0 m3/min at 1 450 kPa at 71.0°C 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Blew casing with air to dry. Installed rotating head drive. Drilled 1.0 m to 580 m KB - no dust. Blew casing to dry. Held safety meeting and BOP drill. Drilled 2.0 m to 582.0 m KB - started to make dust. Tripped out bit #8A (RR). Picked up and ran bit #1 and air hammer and drill collars. Slipped and cut line. Held safety meeting and BOP drill. Finished tripping in. Broke circulation with air. Circulating at 73.0 m3/min at 1 450 kPa. Slowly drilling ahead, worked pipe after drilling each metre. Increased air volume to 100.0 m3/min at 3 450 kPa to help dry hole. Drilled to 610 m KB, hole making good dust. Reduced air volume to 73.0 m3/min at 1 450 kPa at 71.0°C. Ran accumulator check, okay. Drilling at report time. ROP: 9.0 m/h.

Page No. 57

J

Weather Clear Temp 1 'C Road Good Date 97 01 06

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 41

Depth 763 m Progress 135 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 763 m KB with reduced WOB to control deviation. Hole making good dust. No indication of hydrocarbon entering the wellbore. Drilling at report time, ROP: 7.0 m/h.

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 763 m KB with reduced WOB to control deviation. Hole making good dust. No indication of hydrocarbon entering the wellbore. Drilling at report time, ROP: 7.0 m/h.

Average Air Calculation Rate: Average Air Calculation Rate: 69.0 m3/min at 1655 kPa at 80°C 69.0 m3/min at 1655 kPa at 80°C

ESTIMATED COSTS: DAILY $ ESTIMATED COSTS: DAILY $ 34 681 CUMULATIVE $ 1 771 451 SUPERVISOR Mike Kramps 34 681 CUMULATIVE $ 1 771 451 SUPERVISOR Mike Kramps

Page No. 58 Page No. 58

No. Size - mm Type S.N. Jets - mm Wt. - daN r/min Out - m In - m Metres Hours Condition

No. 1 Size - mm 311 Type H4552 S.N. K56931 Jets - mm 3 x 19.0

r/min 35 Out - m In In - m 582 Metres 181 Hours 30.00 Condition

BITS 1

BITS

311 H4552 K56931 3 x 19.0 500 - 1 000 Wt. - daN 500 - 1 000 35 In 582 181 30.00

TIME DISTRIBUTION

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

21 Handle Tool 22 Clean to Btm 23 24 25

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -8 °C Road Good Date 97 01 07

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 42

Depth 936 m Progress 173 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 800 m 1.40 0 345 1 RU & RD

Size - mm 311 855 m 1.40 °353 2 Drill Actual 23.00 Type H4552 m 3 Reaming

S.N. K56931 m 4 Coring

Jets - mm 3 x 19.0 m 5 Cond. Hole Wt. - daN 500 - 1 000 m 6 Trips r/min 35 m 7 Lubr. Rig

Out - m In PUMP 8 Repair Rig In - m 582 Liner Length 9 Cut Off D.L. Metres 354 No. mm mm SPM 10 Dev. Survey 1.00 Hours 53.00 1 159 229 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Quebec City formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 936 m KB with reduced WOB to control deviation. Hole making good dust. Hole in good condition and there is no indication of hydrocarbon entering the wellbore. Drilling at report time, ROP:±9.0 m/h.

Average Air Circulation Rate: 69.0 m'/min at 1 520 kPa at 80°C

ESTIMATED COSTS: DAILY $ 35 502 CUMULATIVE $ 1 806 953 SUPERVISOR Mike Kramps

Page No. 59

J

Weather Well Rig Ralex, 1 Day No. 43 GENOIL et al ST. LEONARD NO. 1

Good Date 97 01 08 Snowing Temp -14 'C Road

ESTIMATED COSTS: DAILY $ 35 636 CUMULATIVE $ 1 842 589 SUPERVISOR Mike Kramps

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Depth 1124 m Progress 188 m Hole Size 311 mm Status Drilling Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 1 927 m 1.00 1 RU & RD Size - mm 311 1003 m 2.75 2 Drill Actual 21.75 Type H4552 1040 m 2.00 3 Reaming

S.N. K56931 1087 m 1.75 4 Coring Jets - mm 3 x 19.0 m 5 Cond. Hole Wt. - daN 500 - 1 000 m 6 Trips

r/min 35 m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 582 Liner Length 9 Cut Off D.L. Metres 354 No. mm mm SPM 10 Dev. Survey 1.75 Hours 74.75 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine (?) formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Slowly increased WOB from 500 to 1000 daN to 2000 daN. Drilled to 1021 m KB. Inclination increased from 1.0° at 947 m KB to 2.75° at 1003 m KB. Reduced WOB back to 500 to 1000 daN. Drift is beginning to fall as a result of the WOB. Drilled to 1124 m KB, hole making good dust and is cleaning well. No indication of hydrocarbons entering the wellbore. Drilling at report time, ROP: ±8.0 m/h.

NOTE: Single shot directional instrument failed, replacement instrument due on location this date.

Page No. 60

J

ESTIMATED COSTS: DAILY $ 45 088 CUMULATIVE $ 1 887 677 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Date 97 01 09 Good Clear Temp -15 'C Road GENOIL et al ST. LEONARD NO. 1

Weather Well Rig Ralex 1 Day No. 44

Depth 1335 m Progress 211 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 1163 m 1.75 ° 1 RU & RD Size - mm 311 1237 m 1.50 2 Drill Actual 22.50 Type H4552 1314 m 1.50 3 Reaming S.N. K56931 m 4 Coring Jets - mm 3 x 19.0 m 5 Cond. Hole Wt. - daN 500 - 1 000 m 6 Trips r/min 35 m 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig In - m 582 Liner Length 9 Cut Off D.L. Metres 753 No. mm mm SPM 10 Dev. Survey 0.75 Hours 97.25 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine (?) formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1335 m KB. Hole making good dust. No indication of hydrocarbons entering wellbore. Hole in good condition. Ran let sub to blow/clean dust from BOP stack. Drilling at report time.

Average Air Circulation Rate: 69.0 m3/min at 1 655 kPa at 70°C

Page No. 61

LEONARD NO. 1 GENOIL et al ST.

s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

% Filter Cake mm Salt mg/L Cal. mg/L

m Progress kg/m' Visc.

Solids

Depth 1456 Mud: Wt Air Methyl Blue

121 m Hole Size 311 rnm Status Drilling

Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

kg/m3 Centrifuge Overflow Wt. kg/m'

SURVEYS Code/Operation Hours BITS

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Snowing Temp -12 °C Road Good Rig Day No. 45

Date 97 01 10 Ralex, 1

Weather Well

TIME DISTRIBUTION

No. 1 1409 m 1.00 ▪ 1 RU & RD Size - mm 311 m • 2 Drill Actual 14.00 Type H4552 m ° 3 Reaming

S.N. K56931 m ° 4 Coring

Jets - mm 3 x 19.0 m ° 5 Cond. Hole 1.75 Wt. - daN 500 - 1 000 m • 6 Trips 8.00 r/min 35 m ▪ 7 Lubr. Rig Out - m 1339 PUMP 8 Repair Rig In - m 582 Liner Length 9 Cut Off D.L. Metres 757 No. mm mm SPM 10 Dev. Survey 0.25 Hours 99.00 11 Wireline Log Condition 2-2-1 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm NOTE: On the day of the recent rig tour, the rig manager was sent to the Ralex shop to check on 23 the size and availability of a power pak for a drillpipe spinner. 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1608 m KB. Blew hole to clean. Pulled three stands of drillpipe and repositioned drillpipe float. Hole is making good dust. Increased air circulation rate to 80 m3/min to assist hole cleaning. Drilling at report time. ROP: ±8.0 m/h.

Average Air Circulation Rate: 69.0 - 80.0 m3/min at 1 690 to 1 860 kPa at 70°C

ESTIMATED COSTS: DAILY $ 40 906 CUMULATIVE $ 1 999 131 SUPERVISOR Mike Kramps

Page No. 62

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -6 °C Road Good Date 97 01 11 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 46 Depth 1645 m Progress 189 m Hole Size 311 mm Status Drilling Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION BITS

SURVEYS Code/Operation Hours

No. 2 1496 m 1.30 °353 1 RU & RD Size - mm 311 1600 m 0.75 0353 2 Drill Actual 21.75 Type H4552 m 3 Reaming S.N. K56995 m 4 Coring Jets - mm 3 x 19.0 m ° 5 Cond. Hole 0.50 Wt. - daN 500 - 1 000 m 0 6 Trips 0.75 r/min 35 m 0 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 1339 Liner Length 9 Cut Off D.L. Metres 306 No. mm mm SPM 10 Dev. Survey 0.50 Hours 35.00 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm NOTE: On the day of the recent rig tour, the rig manager was sent to the Ralex shop to check on the 23 size and availability of a power pak for a drillpipe spinner. 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1608 m KB. Blew hole to clean. Pulled three stands of drillpipe and repositioned drillpipe float. Hole is making good dust. Increased air circulation rate to 80 m3/min to assist hole cleaning. Drilling at report time. ROP: ±8.0 m/hr.

Average Air Circulation Rate: 69.0 -80.0 at 1 690 - 1 860 kPa at 70°C

ESTIMATED COSTS: DAILY $ 40 906 CUMULATIVE $ 1 999 131 SUPERVISOR Mike Kramps

Page No. 63

1

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -12 °C Road Good Date 97 01 12

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 47

Depth 1850 m Progress 195 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 2 1677 m 1.35 °345 1 RU & RD

Size - mm 311 1773 m 1.35 °13 2 Drill Actual 19.50 Type H4552 m 3 Reaming S.N. K56995 m 4 Coring Jets - mm 3 x 19.0 m 5 Cond. Hole 3.25 Wt. - daN 500 - 1 000 m 6 Trips r/min 35 m 7 Lubr. Rig 0.75 Out - m In PUMP 8 Repair Rig In - m 1339 Liner Length 9 Cut Off D.L. Metres 511 No. mm mm SPM 10 Dev. Survey 0.50 Hours 55.00 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm Held a safety meeting with each crew. 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1703 m KB, observed 150 kPa pressure increase. Blew hole clean and increased air circulation rate from 80 to 90 m'/min. Replaced drilling head rubber. Drilled to 1799 m KB. Tripped out three stands and repositioned drillpipe float. Drilling at report time. Hole in good condition and making good dust. No indication of hydrocarbons entering the wellbore. ROP: ±9.0 m/h.

Average Air Circulation Rate: 80.0 - 90.0 m'/min at 1 860 - 2 070 kPa at 70°C

ESTIMATED COSTS: DAILY $ 36 018 CUMULATIVE $ 2 035 149 SUPERVISOR Mike Kramps

Page No. 64

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CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

CLear Temp -8 'C Road

Good

Date 97 01 13

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex 1 Day No. 48

Depth 1933 m Progress 83 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION

SURVEYS Code/Operation Hours 1 RU & RD 2 Drill Actual 8.75 3 Reaming 4 Coring 5 Cond. Hole 0.50 6 Trips 12.75

m 7 Lubr. Rig 0.25 PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L. 0.50 No. mm mm SPM 10 Dev. Survey 1.25

11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Drilling in Lorraine formation. 21 Handle Tool 22 Clean to Btm 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1850 m KB. Air hammer quit working. Blew hole clean and tripped out bit #2. Experienced 10 000 daN hole drag from 1850 m to 1830 m KB. Found Totco ring shattered which in turn caused the hammer to seize. Changed out 228 mm monel and replaced Totco ring. Serviced hammer, surface tested hammer, okay. Ran bit #2 and drill collars. Slipped and cut line. Ran directional survey on trip in (depths were missed when single shot instrument failed). No fill. Broke circulation with air, drilling. Drilling at report time. ROP: ±9.0 m/h.

Average Air Circulation Rate: 90.0 m3/min at 2 070 kPa at 70°C

ESTIMATED COSTS: DAILY $ 37 137 CUMULATIVE $ 2 072 286 SUPERVISOR Mike Kramps

Page No. 65

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No. Size - mm Type S.N. Jets - mm Wt. - daN r/min Out - m In - m Metres Hours Condition

2 BITS

2 (RR) 311 311 H4552 H4552 KJ6995 KJ6995 3 x 19.0 3 x 19.0 500 - 1 000 500 - 1 000 35 35 1850 In 1339 1850 511 83 55.00 8.75 20% wear

927 m 1.75 '348 1040 m 2.25 °353 1163 m 2.00 °349 1314 m 1.75 °349 1870 m 1.50 °28

m °

Good Date 97 01 14 Weather Cloudy Temp -6 °C Road

ESTIMATED COSTS: DAILY $ 41 049 CUMULATIVE $ 2 113 335 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 49

Depth 2078 m Progress 145 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 2 (RR) 1971 m 1.75 °313 1 RU & RD Size - mm 311 m 2 Drill Actual 15.75 Type -552 m 3 Reaming S.N. K56995 m 4 Coring Jets - mm 3x19.0 m 5 Cond. Hole Wt. - daN 500 - 1 000 m 6 Trips r/min 35 m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 1850 Liner Length 9 Cut Off D.L. Metres 229 No. mm mm SPM 10 Dev. Survey 0.25 Hours 24.50 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm Held safety meeting with two crews. 23 Repair Air

24 Equipment 7.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 1990 m KB. Pulled three stands to reposition drillpipe float. Pulled 10 000 daN over string weight. Lost two air compressors because of mechanical problems. Pulled bit #2 (RR) into surface casing. Repaired air compressors. Tripped bit #2 (RR) back to bottom, no fill. Broke circulation with air. Drilled to 2059 m KB. Lost 1 air compressor because of mechanical problems. Waiting on repairs. Slowly drilling ahead with reduced air circulation rate. Drilling at report time, ROP: ±8.0 m/h.

Average Air Circulation Rate: 94 to 69 m3/min at 2 070 to 1 725 kPa at 70°C

Page No. 66

Good Weather Date 97 01 15 Clear Temp -4 °C Road

ESTIMATED COSTS: DAILY $ 37 453 CUMULATIVE $ 2 150 788 SUPERVISOR Mike Kramps

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 50

Depth 2260 m Progress 182 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 2 (RR) 2097 m 1.50 °313 1 RU & RD Size - mm 311 2179 m 1.10 °08 2 Drill Actual 19.75 Type H4552 m ° 3 Reaming S.N. K56995 m 4 Coring Jets - mm 3 x 19.0 m 5 Cond. Hole Wt. - daN 500 - 1 000 m ° 6 Trips 2.75 r/min 35 m ° 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig In - m 1850 Liner Length 9 Cut Off D.L. Metres 410 No. mm mm SPM 10 Dev. Survey 1.25 Hours 44.25 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 2086 m KB with air circulation rate of 69.0 m3/min. Repaired compressor and put back on line. Pulled 3 stands and repositioned drillpipe float. Experienced 2 directional survey misruns (2086 m and 2095 m KB). Drilled to 2199 m KB. Pulled 3 stands and repositioned drillpipe float. Drilling at report time. ROP: ±9.0 m/h.

Average Air Circulation Rate: 69.0 to 100.0 m'/min at 1 725 to 2 480 kPa at 70°C

Page No. 67

1

s/L W.L. % Filter Cake

kg/m3 Rate kg/m3 Rate kg/m'

Mud: Wt Air kg/m' Visc. Methyl Blue Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

ESTIMATED COSTS: DAILY $ 39 055 CUMULATIVE $ 2 189 843 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp 0

Well GENOIL et al ST. LEONARD NO. 1 Rig

Depth 2351 m Progress 91 m Hole Size 11 mm Status

Date 97 01 16

Ralex, 1 Day No. 51 Blowing hole mPa.s YP Pa Gels Pa

mg/L Cal. mg/L kg/m' Rate Umin

kg/m' Rate Umin kg/m'

3 cm' p H PV mm Salt Desander Underflow Wt. Desander Overflow Wt. Centrifuge Overflow Wt.

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 2 (RR) 1 (RR) 2283 m 0.4 °318 1 RU & RD Size - mm 311 311 m 2 Drill Actual 11.00 Type H4552 H4552 m 3 Reaming S.N. K56995 K56931 m 4 Coring Jets - mm 3x19.0 3x19.0 m 5 Cond. Hole 1.00 Wt. - daN 500 - 1000 50 - 1500 m 6 Trips 10.25 r/min 35 35 m ° 7 Lubr. Rig Out - m 2302 In PUMP 8 Repair Rig In - m 1850 2302 Liner Length 9 Cut Off D.L. Metres 452 49 No. mm mm SPM 10 Dev. Survey Hours 51.75 5.50 11 Wireline Log Condition 50% wear 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm Refer to attached Directional Survey Report for wellbore drift particulars. 23 Jet BOP 0.50 Held BOP drills and safety meetings. 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 2302 m KB. Pulled 3 stands to recover drillpipe float. Pulled 10 000 daN over string weight off bottom. Blew hole to clean. Installed jet sub and cleaned out BOP stack. Tripped out bit #2 (RR). Double strapped drill string, +1.50 m difference, no correction. Serviced air hammer and changed out bit because of broken and chipped inserts. Ran bit #1 (RR) and drill collars. Slipped and cut line. Finished tripping in. Broke circulation with air and cleaned 1.0 m fill. Drilled to 2351 m KB. Hole tight, increased air volume and blew hole to clean at report time.

Average Air Circulation Rate: 100.0 to 127.0 m'/min at 2 480 to 2 820 kPa at 70.0

Page No. 68

°C Road Good

Umin Umin

ESTIMATED COSTS: DAILY $ 43 881 CUMULATIVE $ 2 233 724 SUPERVISOR Mike Kramps

BISSETT RESOURCE CONSULTANTS LTD. itr

DAILY DRILLING REPORT

Weather Clear Temp -25 °C Road Good Date 97 01 17

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 52

Depth 2479 m Progress 128 m Hole Size 311 mm Status Blowing hole

Mud: Wt Air kg/m3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 (RR) 2385 m 0.5 °33 1 RU & RD

Size - mm 311 m 2 Drill Actual 18.50 Type H4552 m 3 Reaming S.N. K56931 m 4 Coring

Jets - mm 3 x 19.0 m ° 5 Cond. Hole 0.25 Wt. - daN 500 - 1 000 m ° 6 Trips 1.00 r/min 35 m 7 Lubr. Rig

Out - m In PUMP 8 Repair Rig 0.50 In - m 2302 Liner Length 9 Cut Off D.L. Metres 177 No. mm mm SPM 10 Dev. Survey 0.50 Hours 22.75 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

20 sxs Gel PP Output AV Power 15 Test BOP 1sx Caustic kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm 23 Repair Air 24 Comp. 3.25 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulating with air to clean. Recovered large (+15 mm diameter) cutting while working drill string. Resumed drilling. Drilled to 2407 m KB. Tripped out 3 stands to reposition string float. Drilled to 2479 m KB. Shut down to repair air compressors. Blew hole while working on equipment.

Average Air Circulation Rate: 110.0 m3/min at 3 030 kPa at 70°C

Page No. 69

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Good Date 97 01 18 Weather Clear Temp -30 °C Road

ESTIMATED COSTS: DAILY $ 44 985 CUMULATIVE $ 2 278 709 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 53

Depth 2620 m Progress 141 m Hole Size 311 mm Status Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS No. 1 (RR) 2499 m 0.75 °48

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8

RU & RD Size - mm 311 m Drill Actual 19.00 Type H4552 m Reaming S.N. K56931 m Coring Jets - mm 3 x 19.0 m ° Cond. Hole Wt. - daN 500 - 1 000 m Trips 1.75 r/min 35 m Lubr. Rig 0.50 Out - m In PUMP Repair Rig In - m 2302 Liner Length 9 Cut Off D.L. Metres 318 No. mm mm SPM 10 Dev. Survey 0.50 Hours 41.75 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Drilling in Lorraine formation. 21 Handle Tool

22 Clean to Btm 23 Repair Air 24 Comp. 2.25 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Blew hole while repairing air equipment. Drilled to 2519 m KB. Pulled 3 stands to reposition drillpipe float. Drilled to 2547 m KB. Blew hole while repairing air equipment. Drilling at report time, ROP: ±8.0 m/h.

Average Air Circulation Rate: 110.0 m'/min at 3 440 kPa at 70°C

Page No. 70

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Cst.BISSETT RESOURCE CONSULTANTS LTD.

Weather Clear Temp Well GENOIL et al ST. LEONARD NO. 1

DAILY DRILLING REPORT

-30 °C Road Good Date 97 01 19 Rig Ralex, 1 Day No. 54

78 m Hole Size 311 mm Status Tripping Depth 2698 m Progress Mud: Wt 1020 kg/m3 Visc. 55 s/L W.L. 6.0 Methyl Blue 55.0 Solids 2.0 % Filter Cake Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3

cm' pH 9.0 PV 10 2 mm Salt

mPa.s YP 15 Pa Gels 5/15 Pa 600 mg/L Cal. 40 mg/L

kg/m3 Rate Umin kg/m3 Rate Umin

kg/m3

Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

BITS SURVEYS No. 1 (RR) 2612 m 1.25 °38

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7'

RU & RD Size - mm 311 2678 m 1.25 0 73 Drill Actual 13.00 Type H4552 m Reaming S.N. K56931 m Coring Jets - mm 3x 19.0 m Cond. Hole 3.00 Wt. - daN 500 - 1 000 m Trips 6.25 r/min 35 m Lubr. Rig 0.25 Out - m 2698 PUMP 8 Repair Rig In - m 2302 Liner Length 9 Cut Off D.L. Metres 396 No. mm mm SPM 10 Dev. Survey 1.50 Hours 54.75 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

61 sxs Gel 2 sxs Lignite PP Output AV Power 15 Test BOP 1 sx Caustic kPa Umin m/min kW 16 DST 1 sx Soda Ash 17 Plug Back

3 sxs Drispac 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Intermediate hole terminated in the Lorraine formation. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 2632 m KB. Pulled 3 stands and recovered drillpipe float. Jet solids from BOP stack. Drilled to 2698 m KB (intermediate casing point). Blew hole clean. Ran survey, misrun. Reran survey. Tripping out at report time to lay down air drilling bottom hole assembly.

Average Air Circulation Rate: 110.0 m3/min at 3 400 kPa at 70°C

ESTIMATED COSTS: DAILY $ 42 620 CUMULATIVE $ 2 321 329 SUPERVISOR Mike Kramps

Page No. 71

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

ESTIMATED COSTS: DAILY $ 29 147 CUMULATIVE $ 2 350 476 SUPERVISOR Mike Kramps

Date 97 01 20 Temp -10 °C Road Good Weather Clear LEONARD NO. 1 Rig Ralex, 1

0 m Hole Size 311 mm Status Mixing LCM/mud Depth 2698 m Progress Mud: Wt 1020 kg/m' Visc. Methyl Blue 50.0 Solids

12 mPa.s YP 11.5 Pa Gels 4/12 Pa

2.0 % Filter Cake 2 mm Salt 55 s/L W.L. 6.5 cm' pH 9.0 PV

550 mg/L Cal. 40 mg/L

Day No. 55 Well GENOIL et al ST.

kg/m' Rate kg/m' Rate kg/m'

Desilter Underflow Wt. kg/m' Rate I./min Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt.

HYDRAULIC PP Output AV kPa Umin m/min

200 780 12

DRILLING MUD ADDITIVES USED: 5 sxs Gel 1 sx Drispac

5 sxs Celloflake

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5

RU&RD Drill Actual

° Reaming Coring Cond. Hole

6 Trips 9.50 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L. 1.00

SPM 10 Dev. Survey 60 11 Wireline Log 60 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

3 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Displace 24 Hole to Mud 13.50 25

SURVEYS m m m m m m m

PUMP Liner Length

No. mm mm 1 159 229 2 159 229

BITS 8A (RR) 311 MFDSH LD7277 Open

Clean Out Trip

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

No. 1 (RR) Size - mm 311 Type H4552 S.N. K56931 Jets - mm 3x19.0 Wt. - daN 500 - 1 000 r/min 35 Out - m 2698 In - m 2302 Metres 396 Hours 54.75 Condition 75% wear

Umin Umin

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out bit #1 (RR). Double strapped drill string, +1.25 m difference, no correction. Laid down air drilling tools and excess drilling assembly. Ran bit #8A (RR), broke circulation with air and cleaned 10 m fill to bottom. Displaced hole to drilling fluid in 200 m intervals while tripping out. Pulled bit into surface casing. Attempted to break circulation unsuccessfully. Lost approximately 70 m' drilling fluid when filling hole. Filled mud tanks with fresh water. Mixing LCM and drilling fluid at report time.

Page No. 72

I

CBISSETT RESOURCE CONSULTANTS LTD.

Weather Well GENOIL et al ST. LEONARD NO. 1

DAILY DRILLING REPORT

Clear Temp -20 'C Road Good Date 97 01 21

Rig Ralex, 1 Day No. 56

Depth 2698 m Progress 0 m Hole Size 311 mm Status Circulating

Mud: Wt 1020 kg/m' Visc. 75 s/L W.L. 6.0 cm' pH 9.0 PV 23 mPa.s YP 9.5 Pa Gels 3/6 Pa

Methyl Blue 56.0 Solids 2.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 8A (RR) m

Size - mm 311 m

Type MFDSH m S.N. LD7277 m

Jets - mm Open m Wt. - daN m r/min Clean m Out - m Out PUMP In - m Trip Liner Length Metres No. mm mm Hours 1 159 229 Condition 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 93 sxs Gel 39 sxs Celloflake PP Output AV

1 sx Caustic 15 sxs Quick Seal kPa Umin m/min

9 sxs Drispac 4000 1300 20 25 sxs Sawdust

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual Reaming Coring

5 Cond. Hole 4.00 6 Trips 7.50 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 100 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST 87 17 Plug Back

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Mix Mud 7.50 24 Work Tight 25 Hole 5.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) No returns. Pumping drilling fluid at reduced rate, no returns. Cost 230 m' drilling fluid. Mixing drilling fluid. Mixed and displaced 25 m' LCM pill. Started displacing LCM pill and achieved full returns. Circulated to condition mud and hole with full returns. Tripped in to 2600 m KB, attempted to break circulation. Cuttings packed off around drill collars, unable to circulate. Unable to pull drill string. Worked drill string free and pulled bit to 2340 m KB. Broke circulation. Circulated to condition mud and hole. Ran in bit #8A. Broke circulation and circulated 30 minutes after each stand. Circulating and working drill string past tight hole at 2593 m KB at report time.

ESTIMATED COSTS: DAILY $ 26 693 CUMULATIVE $ 2 377 169 SUPERVISOR Mike Kramps

Page No. 73

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Temp °C Road Date 97 01 2221 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 57 Depth m Progress m Hole Size mm Status Mud: Wt kg/m3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. m 1 RU & RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log Condition 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Morning report has been delayed today due to accident investigation activities. At approximately 4:30 a.m., 97 01 22, a derrickman fell from the monkey board to the rig floor. The extent of his injuries is unknown. Ralex management and appropriate authorities have been notified. Operations have been suspended until the accident investigation has been completed. The daily drilling report will be distributed when available.

ESTIMATED COSTS: DAILY $ 26 693 CUMULATIVE $ 2 377 169 SUPERVISOR Mike Kramps

Page No. 74

le BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp -5 °C Road Good Date 97 01 22 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 57

Depth 2698 m Progress 0 m Hole Size 311 mm Status Operations suspended Mud: Wt 1060 kg/m' Visc. 75 s/L W.L. 6.0 cm3 pH 9.0 PV 23 mPa.s YP 10 Pa Gels 3/9 Pa Methyl Blue 60.0 Solids 4.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L./min Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 8A (RR) m 1 RU & RD Size - mm 311 m 2 Drill Actual Type MFDSH m 3 Reaming S.N. LD7277 m 4 Coring Jets - mm Open m 5 Cond. Hole 15.00 Wt. - daN m 0 6 Trips 4.50 r/min Clean m 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig In - m Trip Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 120 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 3.00

37 sxs Gel PP Output AV Power 15 Test BOP 200 sxs Barite kPa L/min m/min kW 16 DST

7 sxs Drispac 17 Plug Back 1 sx Lignite 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 Operations 24 Suspended 1.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated and reamed/cleaned hole from 2593 m to 2602 m KB. Mixed and pumped 25 m' - 1300 kg/m', 100 s/I viscosity pill. Unable to work past 2602 m KB because of fill. Recovering fines across the shale shaker. Tripped out bit #8A. Tore out and laid down 346.1 mm drilling head. Installed flow nipple. Ran bit #BA. Started running drill collars. Operations suspended because of an accident. Further details will be provided when available.

ESTIMATED COSTS: DAILY $ 31 838 CUMULATIVE $ 2 409 367 SUPERVISOR Mike Kramps

Page No. 75

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -6 'C Road Good Date 97 01 23

Well GENOIL et al ST. LEONARD NO. 1 Depth 2698 m Progress 0 m Hole Size Mud: Wt 1060 kg/m' Visc. 100 s/L W.L. 6.0 Methyl Blue 66.0 Solids 4.0 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

Rig Ralex, 1 Day No. 311 mm Status Reaming

cm3 pH 9.0 PV 19 mPa.s YP 31 Pa Gels 2.0 mm Salt 400 mg/L Cal. 40

Limbo Desander Underflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate

Centrifuge Overflow Wt. kg/m'

58

5/6 Pa mg/L Umin L/min

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 8A (RR) m 1 RU & RD

Size - mm 311 m 2 Drill Actual

Type MFDSH m 3 Reaming 6.00

S.N. LD7277 m 4 Coring

Jets - mm Open m 5 Cond. Hole 7.25 Wt. - daN m 6 Trips 2.25 r/min Clean m 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig

In - m Trip Liner Length 9 Cut Off D.L. 1.00 Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 120 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

121 sxs Gel PP Output AV Power 15 Test BOP

5 sxs Drispac kPa L/min m/min kW 16 DST 1 sx Caustic 5000 1600 27/24 133 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional The accident resulted in a fatality when the derrickman fell from the monkey boards. Details of the 21 Handle Tool casualty have been discussed verbally at this time. Accident reports will be available in the near future. 22 Clean to Btm

For details, contact Genoil's spokesperson, Maurice Durette at (819) 478-4141 (office) or 23 Accident (910) 472-9941 (cellular). 24 Investigation 7.50

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Operations suspended while accident investigation was conducted by Ralex management and government authorities (QPP and CSST) from 6:00 a.m. to 1:30 p.m.. Ran bit #8A (RR) and drill collars. Slipped and cut line. Tripped in to 1571 m KB. Hole tight. Broke circulation and circulated to condition mud and hole. Started reaming at 1571 m KB. Reamed and cleaned to 1589 m KB at report time with very high torque. Plan to increase mud density and viscosity to combat sloughing/spauling problem. No drilling fluid was lost over the past 24 hours. Unable to run both mud pumps, WO mechanic.

ESTIMATED COSTS: DAILY $ 28 934 CUMULATIVE $ 2 437 941 SUPERVISOR Mike Kramps

Page No. 76

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CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -25 °C Road Good Date 97 01 24

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 59

Depth 2698 m Progress 0 m Hole Size 311 mm Status Reaming

Mud: Wt 1100 kg/m' Visc. 150 s/L W.L. 5.0 cm' pH 9.0 PV 68 mPa.s YP 26 Pa Gels 8/16 Pa

Methyl Blue 77.0 Solids 6.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 8A (RR) m • 1 RU & RD

Size - mm 311 m • 2 Drill Actual

Type MFDSH m • 3 Reaming 24.00 S.N. LD7277 m ▪ 4 Coring Jets - mm Open m • 5 Cond. Hole Wt. - daN m ° 6 Trips r/min Clean m ° 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig In - m Trip Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 120 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 275 sxs Gel PP Output AV Power 15 Test BOP 14 sxs Drispac kPa Umin m/min kW 16 DST

204 sxs Barite 5500 1600 27/24 146 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed/cleaned from 1589 m to 1674 m KB. Hole is slouching/spauling shale up to 19.0 mm in diameter. Reamed/cleaned from 1674 m to 1865 m KB. Hole is sloughing/spaulinq shale cuttings ranging from small slivers to 12.7 mm in diameter. Unable to run stands of drillpipe, must ream/clean each single. Reaming/cleaning at 1865 m KB at report time.

ESTIMATED COSTS: DAILY $

33 618 CUMULATIVE $ 2 442 625 SUPERVISOR Mike Kramps

Page No. 77

I

ESTIMATED COSTS: DAILY $ 26 122 CUMULATIVE $ 2 468 747 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Date 97 01 25 Good Cloudy Temp -5 °C Road GENOIL et al ST. LEONARD NO. 1

Weather Well Rig Rolex, 1 Day No. 60

Depth 2698 m Progress 0 m Hole Size 311 mm Status Reaming

Mud: Wt 1100 kg/m' Visc. 150 s/L W.L. 5.0 cm3 pH 9.0 PV 55 mPa.s YP 28 Pa Gels 8/18 Pa

Methyl Blue 70.0 Solids 6.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A (RR) m ° 1 RU & RD

Size - mm 311 m 0 2 Drill Actual

Type MFDSH m 3 Reaming 17.25

S.N. LD7277 m ° 4 Coring Jets - mm Open m 5 Cond. Hole Wt. - daN m 6 Trips 0.50 r/min Clean m 7 Lubr. Rig 0.25 Out - m Out PUMP 8 Repair Rig

In - m Trip Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 120 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 111 sxs Gel PP Output AV Power 15 Test BOP

2 sxs Drispac kPa L/min m/min kW 16 DST 2 sxs Caustic 8000 1600 27/24 213 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work Tight 24 Hole 6.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed to 1885 m KB, recovering sharp up to 12.7 mm diameter cuttings. Attempted to run one stand of drillpipe. Unable to break circulation or move drill string, packed off. Worked drill string free in six hours. Pulled to 1865 m KB and circulated to condition mud and hole. Resumed reaming. Reamed to 1999 m KB. Ran drill string to 2084 m KB. Reamed to 2210 m KB, hard reaming from 2188 m to 2210 m KB. Recovering sharp 9.5 mm to 12.7 mm diameter cutting which the sloughing/spalling into the hole. Experiencing high torque when applying over 1 000 daN WOB. Reaming at report time. Beginning to increase mud density.

Page No. 78

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -20 'C Road Good

Date 97 01 26

Well GENOIL et al ST. LEONARD NO. 1 Rig Depth 2698 m Progress 0 m Hole Size 311 mm Status

Ralex, 1 Day No. 61 Working stuck pipe

Mud: Wt 1120 kg/m' Visc. 165 s/L W.L. 5.0 cm3 pH 9.0 PV 64 mPa.s YP 23 Pa Gels 7/17 Pa Methyl Blue 77.0 Solids 7.6 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 8A (RR) m Size - mm 311 m Type MFDSH m S.N. LD7277 m Jets - mm Open m Wt. - daN m r/min Clean m Out - m Out PUMP In - m Trip Liner Length Metres No. mm mm Hours 1 159 229 Condition 2 159 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 137 sxs Gel PP Output AV 166 sxs Barite kPa Umin m/min

3 sxs Caustic 8000 1600 27/24

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 2

RU & RD Drill Actual

3 Reaming 20.50 4 Coring 5 Cond. Hole 6 Trips 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 120 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

213 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work Stuck 24 Pipe 3.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed and cleaned from 2210 m to 2556 m KB. Hole continued to unload 4.5 mm to 12.7 mm diameter cuttings. While reaming at 2556 m KB, pump pressure increased dramatically, packed off around drill collars. Unable to break circulation. Started working and jarring drill string. Gained approximately 0.3 m. Jars quit working. Continued to work drill string while waiting on fisherman.

ESTIMATED COSTS: DAILY $ 28 122 CUMULATIVE $ 2 496 854 SUPERVISOR Mike Kramps

Page No. 79

J

Good Date 97 01 27 Weather Clear Temp -20 °C Road

ESTIMATED COSTS: DAILY $ 28 638 CUMULATIVE $ 2 525 492 SUPERVISOR Mike Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 62

Depth 2698 m Progress 0 m Hole Size 311 mm Status Working stuck pipe Mud: Wt 1170 kg/m' Visc. 185 s/L W.L. 5.0 cm3 pH 9.0 PV 80 mPa.s YP 25 Pa Gels 9/19 Pa Methyl Blue 78.0 Solids 10.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A (RR) m 1 RU & RD

Size - mm 311 m ° 2 Drill Actual Type MFDSH m 3 Reaming S.N. LD7277 m ° 4 Coring

Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min Clean m ° 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig In - m Trip Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 11 Wireline Log Condition 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 156 sxs Barite PP Output AV Power 15 Test BOP

1 sx Kelsan kPa Umin m/min kW 16 DST 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work Stuck 24 Pipe 24.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drill string stuck at 2556 m KB. Unable to break circulation. Continued to work stuck drill string. Rigged in Dowell cement unit to stand pipe. Attempted to break circulation, pressured up on drillpipe to 35 000 kPa while working the drill string, unable to break circulation. Rigged out Dowell. Continued to work stuck drill string while waiting on fishing tools. NOTE: Fishing tool estimated time of arrival is noon, 97 01 27.

Page No. 80

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -5 °C Road

Good

Date 97 01 28 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 63

Depth 2698 m Progress 0 m Hole Size

311 mm Status WO daylight Mud: Wt 1200 kg/rn3 Visc. 170 s/L W.L. 5.0 cm' pH 9.0 PV 74 mPa.s YP 23 Pa Gels 9/16 Pa Methyl Blue 77.0 Solids 12.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

TIME DISTRIBUTION

No. 8A (RR) Size - mm 311 Type MFDSH S.N. LD7277 Jets - mm Open Wt. - daN r/min Clean Out - m Out In - m Trip Metres Hours Condition

BITS

SURVEYS Code/Operation Hours

m 1 RU&RD

m 2 Drill Actual m 3 Reaming m 4 Coring

m 5 Cond. Hole m 6 Trips m 7 Lubr. Rig

PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey

1 159 229 11 Wireline Log

2 159 229 12 Run Csg/Cmt 13 Wait on Cmt

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 12.00 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work Stuck 24 Pipe 9.00 25 WO Daylight 3.00

DRILLING MUD ADDITIVES USED: 50 sxs Barite

1 sx Kelsan

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to work stuck drill string (jars not working) Rigged in wireline unit. Made up and ran free point tools. Stopped to test tools, kelly froze. Thawed kelly. Ran free point, determined free point at 2487 m KB (one drill collar below HWDP). Pulled and laid down free point tools. Shut down operation for safety reasons (wireline crew have been up over 18 hours) to allow wireline crew to rest. WO daylight. Plan to back off drill collars at 2487 m KB.

ESTIMATED COSTS: DAILY $ 32 527 CUMULATIVE $

2 558 019 SUPERVISOR Mike Kramps

Page No. 81

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i

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

°C Road Good Weather

Clear Temp -15

Centrifuge Overflow Wt. kg/m3

Well GENOIL et al ST. LEONARD NO. 1

Rig Depth 2698 m Progress 0 m Hole Size

311 mm Status

Mud: Wt 1200 kg/m' Visc. 160 s/L W.L. Methyl Blue 70.0 Solids 12.0 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

• 6 Trips 13.00 o 7 Lubr. Rig

8 Repair Rig

SURVEYS m

Code/Operation Hours 1 RU & RD 2 Drill Actual 3 Reaming 4 Coring

• 5 Cond. Hole

ESTIMATED COSTS: DAILY $ 24 639 CUMULATIVE $ 2 582 158 SUPERVISOR Mike Kramps

Ralex, 1

5.0 cm' pH 9.0 PV 75 mPa.s YP 20 Pa Gels 8/15 Pa 2.0 mm Salt 400 mg/L Cal. 80 mg/L Umin Desander Underflow Wt. kg/m' Rate Umin

Umin Desander Overflow Wt. kg/m' Rate Umin

TIME DISTRIBUTION

Page No. 82

J

m m m m m m PUMP

Tripping

Date 97 01 29 Day No. 64

BITS

Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey

1 159 229 11 Wireline Log

2 159 229 12 Run Csg/Cmt

No. 8A (RR) Size - mm 311 Type MFDSH S.N. LD7277 Jets - mm Open Wt. - daN r/min Clean Out - m Out In - m Trip Metres Hours Condition

-36 Date 97 01 30 Day No. 65

°C Road Good Rig Ralex 1

BISSETT RESOURCE CONSULTANTS LTD. $+

DAILY DRILLING REPORT

Weather Clear Well Depth Mud: Wt 1200 kg/m3 Visc. Methyl Blue 77.0 Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

Temp

195 s/L W.L. 5.0 12.0 % Filter Cake

kg/m3 Rate kg/m3 Rate

kg/m3

cm3 pH 9.0 PV 84 mPa.s YP 2.0 mm Salt 400

Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

GENOIL et al ST. LEONARD NO. 1

kg/m3 Rate Umin kg/m3 Rate Umin kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 8A (RR) m 1 RU & RD Size - mm 311 m 2 Drill Actual Type MFDSH m 3 Reaming S.N. LD7277 m 4 Coring Jets - mm Open m 5 Cond. Hole 16.50 Wt. - daN m 6 Trips 7.50 r/min Clean m ° 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig In - m Trip Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 72 11 Wireline Log Condition 2 159 229 72 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 292 sxs Barite PP Output AV Power 15 Test BOP

2 sxs Kelzan kPa Umin m/min kW 16 DST 30 sxs Gel 10 000 2000 28/35 333 17 Plug Back 2 sxs Caustic 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran bit #4 (RR) to 569 m KB, surface casing shoe. Circulated to condition mud. Tripped in to 928 m KB, circulated to condition mud and hole. Tripped in to 1212 m KB, circulated to condition mud and hole. Tripped in to 1493 m KB, circulated to condition mud and hole at report time, recovering moderate amount of cuttings ranging in size from 10 to 12 mm in diameter.

Plan to clean to top of fish. Condition mud and hole. Trip out, pick up and run screw in sub and jarring assembly.

ESTIMATED COSTS: DAILY $ 114 686 CUMULATIVE $ 2 697 344 SUPERVISOR Mike Kramps

Page No. 83

J

2698 m Progress 0 m Hole Size 311 mm Status Tripping 30 Pa Gels 15/25 Pa

mg/L Cal. 80 mg/L

Good Date 97 01 31 GENOIL et al ST. LEONARD NO. 1

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp -14 °C Road Weather Well Depth 2698 m Progress 0 m Hole Size 311 mm Status Reaming Mud: Wt 1220 kg/m' Visc. 200 s/L W.L. 5.0 cm' pH 9.0 PV 76 mPa.s YP 30 Pa Gels 9/18 Pa Methyl Blue 78.0 Solids 12.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 100 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 4 m 1 RU & RD Size - mm 311 m 2 Drill Actual Type MFDSH m 3 Reaming S.N. LG3442 m 4 Coring Jets - mm Open m 5 Cond. Hole Wt. - daN m 6 Trips r/min Clean m 7 Lubr. Rig Out - m Out PUMP 8 Repair Rig 2.00 In - m Trip Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 80 11 Wireline Log Condition 2 159 229 80 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 346 sxs Barite PP Output AV Power 15 Test BOP

3 sxs Kelzan kPa Umin m/min kW 16 DST 73 sxs Gel 11 000 2100 39/31 385 17 Plug Back

2 sxs Caustic 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 22.00 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped into 1725 m KB, hole began taking string weight. Broke circulation. Reamed and cleaned to 1734 m KB. "O" ring on gooseneck failed. Stood back kelly, rigged in Nubbin and circulated while repairing gooseneck. Picked up kelly, continued reaming and cleaning. Reaming/cleaning at 2016 m KB at report time.

NOTE: Recovering cuttings ranging up to 25 mm diameter slivers. Reaming is spotty as is volume of cuttings across shaker. Hole seems to be improving in terms of drag, torque and volume of cuttings. Continued to increase mud density. Second supervisor is on location to provide 24-hour supervision.

ESTIMATED COSTS: DAILY $ 32 383 CUMULATIVE $ 2 729 727 SUPERVISOR M. Kramps/D. Gaboury

Page No. 84

Rig Ralex, 1 Day No. 66

D m Hole Size 311 mm Status Reaming 190 s/L W.L. 5.0 cm' pH 9.0 PV 70 mPa.s YP

13.0 % Filter Cake 2.0 mm Salt 400 30 Pa Gels 11/23 Pa mg/L Cal. 120 mg/L

No. 4 Size - mm 311 Type MFDSH S.N. LG3442 Jets - mm Open Wt. - daN r/min Clean Out - m Out In - m Trip Metres Hours Condition

BITS SURVEYS m m m m m m m PUMP

Liner

Length No. mm mm

1

159

229 2

159

229

DRILLING MUD ADDITIVES USED: HYDRAULIC 469 sxs Barite 10 sxs Sawdust PP Output AV

3 sxs Kelzan kPa Umin m/min 96 sxs Gel 11 500 1850 33/27 2 sxs Caustic

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

C BISSETT RESOIJRCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy and Snowing Temp -4 °C Road Fair

Date 97 02 01 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1

Day No. 67 Depth 2698 m Progress Mud: Wt 1250 kg/rn3 Visc. Methyl Blue 80.0 Solids Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

kg/m' Rate Umin kg/m' Rate Umin

kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 6 Trips 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 135 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

354 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 24.00 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to ream and clean to bottom. From 2016 m to 2325 m KB reaming/cleaning operations were normal with small amount of formation cuttings coming across the shaker. Starting at 2325 m KB, reaming rate of penetration slowed considerably. Reamed from 2325 m to 2360 m KB at report time (4 hours). Recovered 10 mm to 12 mm diameter sharp formation cuttings over the shaker. Reaming progress is slow due to penetration and having to ream each single numerous times. Amount of cuttings over the shaker has increased through this interval. The hole appears to be cleaning well.

NOTE: Unable to run pump 2 because of overheating.

ESTIMATED COSTS: DAILY $

33 183 CUMULATIVE $ 2 762 910 SUPERVISOR M. Kramps/D. Gaboury

Page No. 85

BITS No. 4

SURVEYS Code/Operation Hours m 1 RU & RD m 2 Drill Actual m 3 Reaming 20.50 m 4 Coring

m 5 Cond. Hole 1.25 m 6 Trips m 7 Lubr. Rig

PUMP 8 Repair Rig 2.25

1 159 229 90 2 140 229 90

Size - mm 311 Type MFDSH S.N. LG3442 Jets - mm Open Wt. - daN r/min Clean Out - m Out In - m Trip Metres Hours Condition

Liner Length 9 Cut Off D.L. No. mm mm SPM 10 Dev. Survey

11 Wireline Log 12 Run Csg/Cmt

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -8 CC Road

Good

Date 97 02 02 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex 1

Day No. 68 Depth 2698 m Progress 0 m Hole Size 311

mm Status Circulating

Mud: Wt 1290 kg/m' Visc. 200 s/L W.L. 5.0 cm' pH 9.0 PV

80 mPa.s YP 30

Pa Gels 11/23 Pa Methyl Blue 82.0 Solids 14.0 % Filter Cake

2.0 mm Salt 400 mg/L Cal. 120 mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desilter Overflow Wt. kg/m' Rate 1../min Centrifuge Underflow Wt. kg/m'

kg/m' Rate L/min kg/m' Rate L/min

kg/m'

Desander Underflow Wt. Desander Overflow Wt. Centrifuge Overflow Wt.

TIME DISTRIBUTION

13 Wait on Cmt DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up

390 sxs Barite

PP Output AV Power 15 Test BOP 1 sx Kelzan

kPa L/min m/min kW 16 DST 131 sxs Gel

16500 2200 41/33 605 17 Plug Back 1 sx Caustic

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed and cleaned from 2360 m to 2435 m KB. Progress is slow because of reaming penetration rate. Recovered up to 25 mm rounded formation cuttings over shaker, hole is cleaning well. Kelly hose failed, blew hose off end coupling. Rigged in 50 mm hose, broke circulation and repaired kelly hose. Rigged in kelly hose, broke circulation and resumed reaming. Reamed and cleaned from 2435 m to 2498 m KB, top of fish. Circulating at report time to condition mud and hole. Recovering 12 mm semirounded cuttings over shaker.

ESTIMATED COSTS: DAILY $

30 385 CUMULATIVE $ 2 790 884 SUPERVISOR M. Kramps/D. Gaboury

Page No. 86

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Well

Clear Temp -5 °C Road Good Date 97 02 03 GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 69

Depth 2698 m Progress 0 m Hole Size 311 mm Status Tripping Mud: Wt 1290 kg/m' Visc. 200 s/L W.L. 5.0 cm3 pH 9.0 PV 80 mPa.s YP 30 Pa Gels 11/23 Pa Methyl Blue 82.0 Solids 14.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 120 mg/L

Desilter Underflow Wt. kg/m' Rate 1../min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Under(low Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS No. 4 m Size - mm 311 m Type MFDSH m

S.N. LG3442 m Jets - mm Open m

Wt. - daN m r/min m Out - m Clean PUMP In - m Out Liner Length Metres Trip No. mm mm Hours 64.50 (reaming) 1 159 229 Condition 2-2-1 2 140 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 210 sxs Barite PP Output AV

1 sx Caustic kPa Umin m/min 36 sxs Gel 16500 2200 41/38

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Hole drag up: 8 - 10 000 daN Held BOP drill with each crew. Held safety meeting with two crews.

°

TIME DISTRIBUTION Code/Operation Hours 1 2

RU & RD Drill Actual

° 3 Reaming 6.50 4 Coring 5 Cond. Hole 10.75

° 6 Trips 6.50 0 7 Lubr. Rig 0.25

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 90 11 Wireline Log 90 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

605 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated on top of fish at 2498 m KB to condition mud and hole. Initially, recovered a lot of 12 mm diameter cuttings - after four bottoms up, cuttings decreased to very small amount. Mixed and pumped 10 m' - 1500 kg/m3 density , 400 s/L viscous - weighted pill. Valve cap gasket failed on pump 2 when pumping pill. Circulated pill with pump 1, no increase in cuttings when pill came to surface. Started dummy trip. Pumped out a single at 2346 m KB and at 2213 m KB. Tripped out to 1700 m KB. Pumped weighted pill. Finished tripping out bit 4. Hole was in good condition from 1700 m KB to surface. Strapped drill string, +0.62 m difference, no correction. Laid down 2 - 229 mm square drill collars. Ran bit 4 (RR). Running in drill collars at report time.

ESTIMATED COSTS: DAILY $ 35 602 CUMULATIVE $ 2 826 486 SUPERVISOR M. Kramps/D. Gaboury

Page No. 87

J

Code/Operation Hours 1 RU & RD 2

Drill Actual 3 Reaming 4 Coring 5

Cond. Hole 2.00 6 Trips 18.75 7 Lubr. Rig 8

Repair Rig 9

Cut Off D.L. 0.75 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up 15 Test BOP 16 DST 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 2.50 22 Clean to Btm 23 24 25

ie BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

311 Well GENOIL et al ST. LEONARD NO. 1 Depth 2698 m Progress 0 m Hole Size

Rig mm Status

Ralex, 1 Circulating

Weather Clear Temp -20 °C Road

Good Date 97 02 04 Day No. 70

Mud: Wt 1295 kg/m' Visc. 200 s/L W.L. 5.0 cm3 pH 9.0 PV 75 rPa.s YP 30 Pa Gels 11/23 Pa Methyl Blue 80.0 Solids 14.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 160 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION BITS

SURVEYS

No. 4

m Size - mm 311 Type MFDSH S.N. LG3442 Jets - mm Open Wt. - daN r/min Out - m Clean In - m Out Metres Trip Hours Condition

DRILLING MUD ADDITIVES USED: 72 sxs Barite 2 sxs Drispac

26 sxs Gel 1 sx Kelzan

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

m m m m m m

PUMP

Liner

Length No. mm mm SPM

1 140

229

100 2 140

229

100

HYDRAULIC PP

Output AV

Power kPa

Umin m/min

kW 15 000

2100 39/32

525

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in bit #4 (RR) an drill collars. Circulated while slipping and cutting line and changed out pump liners in pump no. 1. Tripped in to 1000 m KB, circulated bottoms up, minimal amount of cuttings. Tripped in to 1725 m KB, circulated bottoms up. Recovered minimal amount of 12 mm diameter cuttings with some 25 mm sharp slivers. Continued tripping in, reamed bridges from 1798 m to 1808 m KB, 1996 m to 2006 m KB, 2176 m to 2185 m KB, 2420 m to 2430 m KB and 2450 m to 2459 m KB. NOTE: No hole drag between bridges. Tagged top of fish at 2498 m KB. Circulated to condition mud and hole. Recovering minimal amount of 12 mm cuttings. Circulating at report time. After circulating plan to trip out and run open hole logs.

ESTIMATED COSTS: DAILY $ 26 997 CUMULATIVE $ 2 853 483 SUPERVISOR M. Kramps/D. Gaboury

Page No. 88

J

No. 4 (RR) Size - mm 311 Type MFDSH S.N. LG3442 Jets - mm Open Wt. - daN r/min Out - m Clean In - m Out Metres Trip Hours Condition

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Temp -5 °C Road Good

Date 97 02 05

Rig Day No. 71 311 mm Status

cm3 pH 9.0 PV 80 mPa.s YP 30 Pa Gels 12/25 Pa Filter Cake 2.0 mm Salt 400 mg/L Cal. 160 mg/L

L/min Desander Underflow Wt. kg/m' Rate L/min L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Overflow Wt. kg/m'

Well GENOIL et al ST. LEONARD NO. 1 Depth 2698 m Progress 0 m Hole Size Mud: Wt 1300 kg/m' Visc. 200 s/L W.L. 5.0 Methyl Blue 82.0 Solids 14.0 % Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

Ralex, 1 Circulating

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

1 (RR) m • 1 RU & RD 311 m • 2 Drill Actual FD6HC m • 3 Reaming 1.00 LF8663 m • 4 Coring Open m 0 5 Cond. Hole 4.50

m ° 6 Trips 13.75 m ° 7 Lubr. Rig 0.25

Clean PUMP 8 Repair Rig Out Liner Length 9 Cut Off D.L. Trip No. mm mm SPM 10 Dev. Survey

11 Wireline Log 4.50 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up 130 sxs Barite 1 sx Caustic PP Output AV Power 15 Test BOP

1 sx Drispac kPa L/min rn/min kW 16 DST 46 sxs Gel 15 000 2100 39/32 525 17 Plug Back 2 sxs Kelzan 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to condition mud and hole while setting on top of fish at 2498 m KB. Tripped out bit #4 (RR). Pulled tight at 2144.5 m KB and 2135.5 m KB, circulation was not required. Pulled to 2080 m KB, broke circulation, reamed and cleaned from 2080 m to 2060 m KB. Continued trip out, no further tight hole encountered. Rigged in loggers. Ran logging tools. Hole bridged at 1742 m KB. Attempted to work tools by bridge - unsuccessful. Pulled and laid down logging tools. Rigged out loggers. Ran bit #1 (RR). Broke circulation. Reamed and cleaned bridges from 1740 m to 1770 m KB, 2234 m to 2246 m KB and 2330 m to 2377 m KB. Recovering 10 mm rounded cuttings, small to moderate amount. Circulating at report time to condition mud and hole. Plan to trip out to run open hole logs, will dummy trip if hole is tight.

ESTIMATED COSTS: DAILY $ 24 617 CUMULATIVE $ 2 878 100 SUPERVISOR M. Kramps/D. Gaboury

Page No. 89

1

1 140 229 100 2 140 229 100

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -8 °C Road Fair Date 97 02 06 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 72 Depth 2698 m Progress 0 m Hole Size 311 mm Status Circulating Mud: Wt 1350 kg/rn3 Visc. 200 s/L W.L. 5.0 cm' pH 9.0 PV 85 mPa.s YP 35 Pa Gels 18/36 Pa Methyl Blue 81.0 Solids 15.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 160 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min min Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS No. 1 (RR)

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 311 m 0 2 Drill Actual Type FD6HC m 3 Reaming 7.25 S.N. LF8663 m 4 Coring Jets - mm Open _ m 5 Cond. Hole 9.75 Wt. - daN m 6 Trips 5.75 r/min m 0 7 Lubr. Rig Out - m Clean PUMP 8 Repair Rig 1.25 In - m Out Liner Length 9 Cut Off D.L. Metres Trip No. mm mm SPM 10 Dev. Survey Hours 1 140 229 105 11 Wireline Log Condition 2 140 229 105 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 417 sxs Barite 3 sxs Soda Ash PP Output AV Power 15 Test BOP

2 sxs Drispac kPa L/min m/min kW 16 DST 62 sxs Gel 16 250 2 205 41/34 595 17 Plug Back

2 sxs Kelzan 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed and washed from 2377 m to 2498 m KB. (Cleaned 20 m fill on top of fish.) Circulated to condition mud and hole. Tripped out bit #1 (RR) to run open hole logs. Hole tight at 1731 m KB. Broke circulation. Reamed and washed from 1731 m to 1789 m KB. Tripped out to 1700 m KB. Broke circulation, reamed and washed from 1700 m to 1731 m KB. Worked pipe and circulated with pump 2 while repairing pump 1. Reamed and washed from 1731 m to 1769 m KB. Made two wiper trips from 1769 m to 1666 m KB. Hole in good condition. No tight hole. Tripped back to bottom. Reamed and washed bridges from 1821 m to 1839 m KB 1862 m to 1894 m KB, 1938 m to 1995 m KB 2477 m to 2498 m KB (top of fish). Circulating to condition mud and hole while increasing mud density to 1350 kg/m3. When mud density is a consistent 1350 kg/m3, plan to dummy trip to 1650 m KB, followed by open hole logs. While circulating in the past 24 hours, recovered small to moderate amount of formation fines and thumbnail size cuttings. Hole seems to have stopped unloading large formation cuttings.

ESTIMATED COSTS: DAILY $ 40 845 CUMULATIVE $ 2 918 945 SUPERVISOR M. Kramps/D. Gaboury

Page No. 90

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -7 °C Road Well GENOIL et al ST. LEONARD NO. 1

Fair

Date 97 02 07

Rig

Ralex, 1

Day No. 73

Depth 2698 m Progress 0 m Hole Size Mud: Wt 1350 kg/m' Visc. 200 s/L W.L. 5.0 Methyl Blue 81.0 Solids 15.0 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 (RR) m ° 1 RU & RD Size - mm 311 m ° 2 Drill Actual Type FD6HC m 3 Reaming 6.50

S.N. LF8663 m ° 4 Coring Jets - mm Open m ° 5 Cond. Hole 2.00 Wt. - daN m 6 Trips 9.75 r/min m 7 Lubr. Rig

Out - m Clean PUMP 8 Repair Rig In - m Out Liner Length 9 Cut Off D.L. Metres Trip No. mm mm SPM 10 Dev. Survey

Hours 1 140 229 100 11 Wireline Log 5.75 Condition 2 140 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 389 sxs Barite PP Output AV Power 15 Test BOP

1 sx Drispac kPa Umin m/min kW 16 DST

30 sxs Gel 15 000 2 100 39/32 525 17 Plug Back 1 sx Caustic 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to condition mud and hole while setting at 2498 m KB. Dummy tripped to 1700 m KB. Hole pulled tight from 2390 m to 2288 m KB. Pumped out one single at 2114 m KB. Tripped back to bottom, reamed and washed tight hole from 2070 m to 2122 m KB, 2213 m to 2263 m KB and from 2391 m to 2498 m KB. Circulated to condition mud and hole. Tripped out bit #1 (RR) to log. Pulled tight at 2315 m to 2305 m KB, 2260 m to 2245 m KB, 2190 m to 2185 m KB, 2050 m to 2040 m KB and 1699 m to 1651 m KB. Was able to pull through at tight spots. Ran back through without taking weight. Tight spots were only noticeable pulling up. Finished tripping out. Hole appears to be in good condition. Conducted safety meeting. Rigged in Schlumberger. Made up and ran logging tools. Tagged effective total depth at 2477.8 m KB (20.2 m fill). Ran phasor-induction log from 2472.0 m to 569.7 m KB and BHCSL from 2460.0 m to 569.7 m KB. Rigged out Schlumberger. Preparing to run bit #1 RR at report time. Plan to conduct cleanout trip and set ±75.0 m cement plug on top of fish.

ESTIMATED COSTS: DAILY $ 28 699 CUMULATIVE $ 2 947 644 SUPERVISOR M. Kramps/D. Gaboury

Page No. 91

311 mm Status

Tripping cm3 pH 9.0 PV 85 mPa.s YP

35 Pa Gels 18/36 Pa

2.0 mm Salt 400 mg/L Cal. 160 mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

1

Good Date 97 02 08 Weather Clear Temp -23 °C Road

ESTIMATED COSTS: DAILY $ 52 363 CUMULATIVE $ 3 000 007 SUPERVISOR M. Kramps/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 74 Depth 2698 m Progress 0 m Hole Size 311 mm Status Tripping Mud: Wt 1350 kg/m' Visc. 240 s/L W.L. 5.0 cm' pH 9.0 PV 80 mPa.s YP 40 Pa Gels 14/28 Pa Methyl Blue 82.0 Solids 15.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 200 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS No. 1 (RR)

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD Size - mm 311 m Drill Actual Type FD6HC m Reaming 1.50 S.N. LF8663 m Coring Jets - mm Open m ° Cond. Hole 9.50 Wt. - daN m Trips 11.75 r/min m Lubr. Rig 0.25 Out - m Clean PUMP

Liner Length No. mm mm SPM

Repair Rig In - m Out Cut Off D.L. 1.00 Metres Trip Dev. Survey Hours 1 140 229 98 11 Wireline Log Condition 2 140 229 98 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

32 sxs Bicarb 1 sx Kelzan PP Output AV Power 15 Test BOP 185 sxs Barite kPa Umin m/min kW 16 DST

90 sxs Gel 16 500 2 100 39/32 578 17 Plug Back 1 sx Caustic 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran bit #1 (RR) and drill collars (changed out hydraulic jars). Finished tripping in. Broke circulation and cleaned 20 m fill to top of fish. Circulated to condition mud and hole. Pretreated drilling fluid for cement contamination. Circulated. Tripped out bit #1 (RR), hole was tight at: 2270 m, 2242 m, 2215 m, 2099 m, 2071 m, 2042 m and 1957 m KB. Pulled 10 to 25 000 daN over string weight when pulling, yet tight spots would not take weight when moving drill string downward. Did not have to pick up kelly to circulate any of the tight spots. NOTE: BHCSL caliper maximum reach was 390 mm hole diameter, log showed hole size was in excess of 390 mm from first reading to 1700 m KB. Tripped out from 1957 m KB without any further tight hole. Ran 114 mm OD drillpipe open ended to surface casing shoe. Slipped and cut line. Tripping in with open ended drillpipe at report time to run plug #3.

Page No. 92

i

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -30 ̀C Road Good Date 97 02 09 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 75 Depth 2698 m Progress 0 m Hole Size 311 mm Status WOC Mud: Wt 1350 kg/m3 Visc. 200 s/L W.L. 5.0 cm3 pH 9.0 PV 65 mPa.s YP 30 Pa Gels 12/24 Pa Methyl Blue 80.0 Solids 0.15 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 160 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU&RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 16.00 Wt. - daN m 6 Trips 6.00 r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 229 84 11 Wireline Log Condition 2 140 229 84 12 Run Csg/Cmt 1.50

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

10 sxs Gel PP Output AV Power 15 Test BOP kPa I./min m/min kW 16 DST

15 500 1 800 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Safety Mtg 0.50 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with open ended drillpipe to 2460 m KB. Broke circulation and washed to top of fish, no fill. Circulated two bottoms up to condition mud and hole and lower BHT. Drillpipe landed at 2394 m KB. Held safety meeting. Rigged in cementers. Pressure tested surface lines to 15 000 kPa for 3 minutes, okay. Displaced 3.0 m' + 100 s/L bentonite/water spacer fluid. NOTE: spacer fluid was given 5 hours to hydrate. Ran plug #3, 2494 m to 2393 m KB with 35.0 tonnes (22.0 m3) Class "G" + 0.1% D81 + 1.0% D65 at 2100 kg/m' slurry density. Displaced with 0.2 m' fresh water + 16.3 m' drilling mud. Plug down at 17:35, 97 02 08. Pulled 12 stands wet drillpipe to 2160 m KB. Broke circulation and circulated bottoms up. Recovered ±1.0 m' of what appeared to be highly clobbered preflush fluid contaminated with cement, bypassed to sump. Circulated to condition mud and hole. Tripping out at report time while waiting on cement. Plan to stand cement a minimum of 36 hours before polishing plug.

ESTIMATED COSTS: DAILY $ 73 564 CUMULATIVE $ 3 073 571 SUPERVISOR M. Kramps/D. Gaboury

Page No. 93

1

15.0 % Filter Cake 2.0 mm Salt 400

ESTIMATED COSTS: DAILY $ 22 074 CUMULATIVE $ 3 095 645 SUPERVISOR M. Kramps/D. Gaboury

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -10 °C Road Good Date 97 02 10 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 76 Depth 2698 m Progress 0 m Hole Size 311 mm Status Tripping Mud: Wt 1320 kg/rn3 Visc. 190 s/L W.L. 5.0 Methyl Blue 77.0 Solids Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3

cm' pH 9.0 PV 8.0 mPa.s YP 35 Pa Gels 12/24 Pa mg/L Cal. 120 mg/L

Umin Desander Underflow Wt. kg/m3 Rate Umin Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt.. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 1 (RR) m 1 RU & RD Size - mm 311 m 2 Drill Actual Type FDGHC m 3 Reaming S.N. LH8663 m 4 Coring Jets - mm Open m 5 Cond. Hole 6.50 Wt. - daN m 6 Trips 16.25 r/min m 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 229 125 11 Wireline Log Condition 2 140 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 152 sxs Barite PP Output AV Power 15 Test BOP

5 sxs Bicarb kPa Umin m/min kW 16 DST 10 sxs Sawdust 6 000 1 300 20 130 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Clean Floor 1.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out open ended drillpipe. Laid down 19 joints of drillpipe with cement sheath inside. Cleaned off cement from outside of drillpipe. Cleaned rig floor. Reran drillpipe open ended to 2160 m KB. Circulated to condition mud and hole while waiting on cement. Tripped out open ended drillpipe. Laid down 17 joints drillpipe with cement sheath on inside of drillpipe. Ran bit #1 (RR). Tripping in at report time to polish cement plug, strap drill string on trip in.

NOTE: Pump 2 down the past 24 hours for repairs.

Page No. 94

1

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Clear Temp -20 °C Road Good Date 97 02 11

Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 77

Depth 2340 m Progress 32 m Hole Size 311 mm Status Conditioning mud Mud: Wt 1320 kg/m' Visc. 200 s/L W.L. 5.0 cm3 pH 9.0 PV 80 mPa.s YP 35 Pa Gels 12/24 Pa

Methyl Blue 77.0 Solids 15.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 120 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

No. 1 (RR) BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD Size - mm 311 m Drill Actual 5.25

Type FDGHC m Reaming

S.N. LH8663 m Coring

Jets - mm Open m Cond. Hole 14.75

Wt. - daN m Trips 2.50

r/min m ° Lubr. Rig 0.25

Out - m Clean PUMP

Liner Length No. mm mm SPM

Repair Rig 1.25

In - m Out Cut Off D.L.

Metres Trip Dev. Survey

Hours 1 140 229 100 11 Wireline Log

Condition 2 140 229 100 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

20 sxs Barite PP Output AV Power 15 Test BOP

11 sxs Bicarb kPa Umin m/min kW 16 DST 14 500 2 100 39/32 508 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in bit #1 (RR). Worked on mud pump 2, faulty valves and air contamination. Broke circulation, washed and cleaned to 2254 m KB. Circulated bottoms up. Washed and cleaned to 2254 m KB. Circulated and washed to 2308 m KB, tagged top of plug 3 (186 m plug). Drilled plug to 2314 m KB. Circulated bottoms up to confirm cement. Mud was not contaminated. Drilled cement to 2323 m KB. Circulated to condition drilling fluid. Drilled cement to 2340 m KB. Circulating at report time to treat out severe cernent-contaminated mud.

NOTE: Plug 3: 2494 m to 2308 m KB, 186 m length, average hole size: 388 mm

ESTIMATED COSTS: DAILY $

21 186 CUMULATIVE $ 3 116 831 SUPERVISOR M. Kramps/D. Gaboury

Page No. 95

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -12 °C Road Good Date 97 02 12 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 78 Depth 2340 m Progress 2342 m Hole Size 311 mm Status Circulating Mud: Wt 1230 kg/m3 Visc. 135 s/L W.L. 6.0 cm' pH 10.5 PV 70 mPa.s YP 20 Pa Gels 2/12 Pa Methyl Blue 66.0 Solids 13.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 (RR) m 1 RU & RD Size - mm 311 m 2 Drill Actual 0.25

Type FDGHC m 3 Reaming S.N. LH8663 m 4 Coring Jets - mm Open m 5 Cond. Hole 23.50

Wt. - daN m ° 6 Trips r/min m ° 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres 34 No. mm mm SPM 10 Dev. Survey Hours 5.25 1 140 229 145 11 Wireline Log Condition 2 140 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

36 sxs Gel PP Output AV Power 15 Test BOP

25 sxs Bicarb kPa Umin m/min kW 16 DST 20 sxs Lignite 7 500 1 525 23 190 17 Plug Back 10 sxs Sawdust 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled cement plug from 2340 m to 2342 m KB. Circulated while treating cement contaminated drilling fluid. At 14:00, drilling fluid flipped from +300 s/L to 60 - 65 s/L. Continued to circulate to condition drilling fluid and build volume. Additionally, cleaned out solids from pump 2 suction lines and tank. Circulating at report time.

Motor exhausts repaired 97 02 09.

ESTIMATED COSTS: DAILY $ 22 081 CUMULATIVE $ 3 138 412 SUPERVISOR M. Kramps/D. Gaboury

Page No. 96

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CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -20 °C Road Poor Date 97 02 13 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 79 Depth 2342 m Progress 0 m Hole Size 311 mm Status Circulating Mud: Wt 1230 kg/in' Vise. 170 s/L W.L. 6.0 cm' pH 10.5 PV 50 mPa.s YP 20 Pa Gels 5/19 Pa Methyl Blue 70.0 Solids 14.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 (RR) m 1 RU & RD

Size - mm 311 m 2 Drill Actual

Type FDGHC m 3 Reaming

S.N. LH8663 m 4 Coring

Jets - mm Open m 5 Cond. Hole 16.25

Wt. - daN m 6 Trips 7.00

r/min m 7 Lubr. Rig 0.75

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres 34 No. mm mm SPM 10 Dev. Survey

Hours 5.25 1 140 229 100 11 Wireline Log Condition 2 140 229 100 12 Run Csg/Cmt

13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 80 sxs Gel 1 sx Drispac PP Output AV Power 15 Test BOP

8 sxs Bicarb kPa L/min m/min kW 16 DST 17 sxs Lignite 7 500 1 525 23 190 17 Plug Back

1031 sxs Barite 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished cleaning out mud tanks. Continued to circulate while building volume. Mixed new drilling mud until 16:00. Pump 2 continued to cavitate (found 1/. turn valve on mud tank to be in wrong position). Pump 2 working fine. Circulated to condition mud and hole. Made dummy trip to surface casing shoe. Three minor tight spots on trip out - kelly not required. Ran into 1325 m KB, drilling fluid clobbered badly. Circulated to condition drilling fluid. Finished tripping in to 2342 m KB, 2 m fill. Circulating at report time to condition mud and hole. Plan to conduct dummy trip to 1500 m, circulate and trip out to run intermediate casing.

ESTIMATED COSTS: DAILY $ 35 588 CUMULATIVE $ 3 174 500 SUPERVISOR M. Kramps/D. Gaboury

Page No. 97

f

Date 97 02 14 Weather Clear Temp -30 °C Road Fair Day No. 80 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

ESTIMATED COSTS: DAILY $ 27 330 CUMULATIVE $ 3 201 830 SUPERVISOR M. Kramps/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

1

Depth 2342 m Progress 0 m Hole Size 311 mm Status Mud: Wt 1250 kg/m3 Visc. 60 s/L W.L. 6.0 cm3 pH 9.5 PV 42 Methyl Blue 50.0 Solids 12.0 % Filter Cake 2.0 mm Salt Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt.

kg/m' Rate Umin kg/m3 Rate Umin kg/m3

mPa.s YP 7 Pa Gels 3/6 Pa 400 mg/L Cal. 80 mg/L

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 1 (RR) m ° 1 RU & RD Size - mm 311 m 2 Drill Actual

Type FDGHC m 3 Reaming

S.N. LH8663 m 4 Coring

Jets - mm Open m 5 Cond. Hole 15.25

Wt. - daN m 6 Trips 8.25

r/min m 7 Lubr. Rig 0.50

Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L.

Metres 34 No. mm mm SPM 10 Dev. Survey

Hours 5.25 1 140 229 100 11 Wireline Log Condition 2 140 229 100 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

35 sxs Gel 3 sxs Kelzan PP Output AV Power 15 Test BOP

3 sxs Bicarb kPa Umin m/min kW 16 DST

26 sxs Lignite 12 500 2 105 39/32 578 17 Plug Back

105 sxs Barite 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Made dummy trip to 1450 m KB, no fill. Broke circulation, returning drilling mud was clobbered (very high gel strength). Circulated to condition mud and hole. Determined mud was dehydrated, added thinners and water. Fluid properties dropped dramatically after adding thinners and water. Circulated to condition mud and hole. Started dummy trip, called off after tripping to 2075 m KB, no fill after running in. NOTE: Hole condition was good on both dummy trips, worked three tight spots -kelly not required. Circulated and mixed mud in an attempt to increase viscosity. Fluid properties improving. Dummy tripping to 1450 m KB at report time. If drilling fluid properties remain stable, plan to trip out and run intermediate casing.

NOTE: Tight spots on dummy trip: ±2218 m, ±2076 m and 1505 m KB. Required 10 000 daN to pull up and 0 daN down.

Page No. 98

Dummy tripping

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 °C Road Fair Date 97 02 15 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 81 Depth 2342 m Progress 0 m Hole Size 311 mm Status Running casing Mud: Wt 1250 kg/in' Visc. 90 s/L W.L. 6.0 cm3 pH 9.5 PV 55 mPa.s YP 15 Pa Gels 3/9 Pa Methyl Blue 60.0 Solids 12.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS

No. 1 (RR) m Size - mm 311 m Type FDGHC m S.N. LH8663 m Jets - mm Open m Wt. - daN m r/min m Out - m PUMP In - m Liner Length Metres 34 No. mm mm Hours 5.25 1 140 229 Condition 2 140 229

DRILLING MUD ADDITIVES USED: HYDRAULIC 12 sxs Gel PP Output AV 30 sxs Barite kPa Umin m/min

1 sx Kelzan 500 1 100 14

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual Reaming Coring

5 Cond. Hole 2.75 6 Trips 8.50 7 Lubr. Rig 0.25 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 100 11 Wireline Log

12 Run Csg/Cmt 8.25 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

9 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Safety Mtg 0.25 24 Jack Rig 3.50 25 Pump Pill 0.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished dummy trip, no fill. Circulated to condition mud and hole and monitored drilling fluid properties. Drilling fluid in good condition. Pumped pill, tripped out laying down drill string. Worked tight hole at 2299 m, 2152 m and 1497 m KB. Required up to 25 000 daN over string weight to pull through initially, 0 daN string weight on downward movement. Worked tight spots until normal string weight was achieved up and down. Finished laying down drill string. Jacked and levelled drilling rig. Rigged to run casing. Held safety meeting. Tallied, drifted, picked up and ran 244.5 mm OD intermediate casing to ±569 m KB. Circulated bottoms up. Continued running casing, approximately ±90 m of casing run at report time.

ESTIMATED COSTS: DAILY $ 21 324 CUMULATIVE $ 3 223 154 SUPERVISOR M. Kramps/D. Gaboury

Page No. 99

1

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -20 °C Road Fair Date 97 02 16

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 82

Depth 2342 m Progress 0 m Hole Size 311 mm Status Circulating Mud: Wt 1250 kg/rn' Visc. 120 s/L W.L. 6.0 cm3 pH 9.5 PV 55 mPa.s YP 15 Pa Gels 3/9 Pa

Methyl Blue 60.0 Solids 12.0 % Filter Cake 2.0 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. m

Size - mm m

Type m S.N. m

Jets - mm m Wt. - daN m r/min m Out - m PUMP In - m Liner Length

Metres No. mm mm Hours 1 140 229 Condition 2 140 229

DRILLING MUD ADDITIVES USED: HYDRAULIC PP Output AV kPa Umin m/min 2500 2400 32

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual Reaming Coring

5 Cond. Hole 9.00 6 Trips 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 110 11 Wireline Log 110 12 Run Csg/Cmt 14.75

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

100 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Safety Mtg 0.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran 244.5 mm OD casing to 997 m KB. Circulated bottoms up. Ran casing to 1613 m KB. Circulated to condition mud and hole. Ran casing to 1703 m KB, rejected two joints. Difficult to break out joints as coupling appeared out of round. Ran casing to 1834 m KB. Circulated casing while working on pumps to establish required circulation rate. Continued to run casing. Tagged total depth at 2342 m KB, no fill. Circulated with pump 2 - changed liner in pump 1. Put both pumps on line, circulating at report time to condition mud and hole. Held safety meeting.

Pick-up string weight: 180 000 daN Slack-off string weight: 140 000 dan

ESTIMATED COSTS: DAILY $ 20 836 CUMULATIVE $ 3 243 990 SUPERVISOR M. Kramps/D. Gaboury

Page No. 100

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -35 °C Road Good Date 97 02 17 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 83 Depth 2342 m Progress 0 m Hole Size 216 mm Status WOC/head up Mud: Wt 1000 kg/m3 Visc. 28 s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD Size - mm m ° 2 Drill Actual Type m 3 Reaming S.N. m ° 4 Coring Jets - mm m 5 Cond. Hole 6.00 Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 229 110 11 Wireline Log Condition 2 140 229 110 12 Run Csg/Cmt 9.00

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 8.00

30 sxs Sawdust PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 2500 2400 32 100 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Set Slips 1.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated casing to condition mud. Reduced viscosity to 60 s/L. Ran 244.5 mm OD (2346.91 m) 79.6 kg/m API GDE N80 R3 8RD LT&C new casing. Landed at 2342.0 m KB. Rig air supply compressor motor failed. Utilized cementers air supply while changing out motor. Held safety meeting. Rigged in cementers. Pressure tested surface equipment to 20 000 kPa (changed seal in cementing head). Spearheaded with 4.0 m' fresh water + 6.0 m3 CW-100 spacer fluid. Cemented stage 1 using: Lead: 59.0 tonnes (51.5 m3) Class "G" + 2.0% D-20 + 0.5% D-65 + 3 Utonnes D81 at 1795 kg/m3 slurry density, Tail: 49.0 tonnes (36.9 m3) Class "G" + 0.75% D-65 + 0.3% D-160 + 5.0 Utonnes D81 at 1900 kg/m3 slurry density. Bumped plug with 24 000 kPa, floats held okay. Plug down at 16:44, 97 02 16. Had 3.0 m' cement returns to surface. Either caliper log is in error or cement channelled. Dropped dart and opened stage collar, broke circulation. Cemented stage 2 with 28.0 tonnes (24.5 m3) Class "G" + 2.0% D-20 + 0.5% D-65 + 3.0 Utonnes D81. Bumped plug and closed stage tool with 15 000 kPa (no backflow). Plug down at 19:58, 97 02 16. Approximately 2.0 m' cement returns. Rigged out cementers. Picked up BOP stack and set casing in slips with full string weight (180 000 daN). Cut off and dressed casing stub. Heading up at report time.

ESTIMATED COSTS: DAILY $ 482 032 CUMULATIVE $ 3 726 022 SUPERVISOR M. Kramps/D. Gaboury

Page No. 101

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Cil BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -10 'C Road Good

Date 97 02 18

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Day No. 84

Depth 2342 m Progress 0 m Hole Size 216 mm Status Heading up Mud: Wt kg/rn3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION

BITS

DRILLING MUD ADDITIVES USED:

SURVEYS Code/Operation Hours m 1 RU & RD m 2 Drill Actual m 3 Reaming m 4 Coring m 5 Cond. Hole m 6 Trips m 7 Lubr. Rig

PUMP 8 Repair Rig 3.00

Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey

1 140 229 11 Wireline Log

2 140 229 12 Run Csg/Cmt 13 Wait on Cmt

HYDRAULIC 14 Nipple Up 21.00

No. Size - mm Type S.N. Jets - mm Wt. - daN r/min Out - m In - m Metres Hours Condition

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Correction to day no. 83: 21 Handle Tool 244.5 mm OD intermediate casing was landed at 2340.5 m KB, not at 2342.0 m KB as reported on 22 Clean to Btm the daily drilling report, day no. 83. 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Removed drilling spacer spool and installed casing spool with secondary seals. Reinstalled BOP stack without cutting or welding kill lines or well control lines. Installed rotating head and mud/blouie lines. Heading up at report time. Plan to begin pressure testing and tripping in today.

NOTE: Repairing both mud pumps and change pumps. Plan to modify mud handling system. Will not drill out until fluid circulating system is fully operational.

Three hours downtime to repair air compressor motor failure on February 16, 1997.

ESTIMATED COSTS: DAILY $

28 538 CUMULATIVE $ 3 754 560 SUPERVISOR M. Kramps/D. Gaboury

Page No. 102

ESTIMATED COSTS: DAILY $ 10 511 CUMULATIVE $ 3 765 071 SUPERVISOR M. Kramps/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 5 °C Road Good Date 97 02 19 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 85 Depth 2342 m Progress 0 m Hole Size 216 mm Status Pressure testing Mud: Wt kg/rn3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate L/min

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU&RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN m 6 Trips r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig 16.00 In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 229 11 Wireline Log Condition 2 140 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 8.00

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished installing well control equipment. Repaired and worked on both mud pumps and charge pumps. Changed out drilling line. Dumped settling tanks and cleaned same. Transferred mud from suction tanks to settling tanks and cleaned suction tanks. Repaired suction line valves (found 1.0 m of solids in tanks). Set test plug. Pressure tested annular preventer to 1 400 kPa low and 15 000 kPa high for 10 minutes each. Pressure testing well control equipment at report time.

NOTE: 19.00 hours of rig time will be classified as downtime when running casing and heading up because of rig repairs (3.00 hours on 97 02 17 and 16.00 hours 97 02 18).

Page No. 103

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -15 'C Road Good Date 97 02 20 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 86 Depth 2342 m Progress 0 m Hole Size 216 mm Status Tripping Mud: Wt 1000 kg/m3 Visc. 28 s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 5 m 1 RU&RD Size - mm 216 m 2 Drill Actual 1.00 Type HP13G m 3 Reaming S.N. MM6056 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole Wt. - daN 2 - 4 000 m 6 Trips 13.00 r/min 50 m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m 2342 Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 159 229 11 Wireline Log Condition 2 159 229 145 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP 10.00 kPa Umin m/min kW 16 DST 3000 1600 118/62 80 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pressure tested BOP stack, kill lines, well control lines and manifold to 1 400 kPa and 35 000 kPa high for 10 minutes each. Had difficulty pulling test plug because of compacted solids on top of the plug. Pressure tested casing, kelly, safety valves and inside BOPs to 1 400 kPa low and 27 000 kPa high for 10 minutes each. Ran jet sub and jetted BOP stack to remove solids. Ran bit 5. Picked up and ran drill collars, HWDP and drillpipe. Tagged stage collar at 626.96 m KB. Broke circulation and drilled out stage collar. Repeatedly reamed stage collar. Continued to pick up and run 114 mm drillpipe. Bit is at 1500 m KB at report time.

ESTIMATED COSTS: DAILY $ 33 129 CUMULATIVE $ 3 778 200 SUPERVISOR M. Kramps

Page No. 104

I

ESTIMATED COSTS: DAILY $ 35 680 CUMULATIVE $ 3 823 812* SUPERVISOR M. Kramps

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 °C Road Good Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Date 97 02 21 Day No. 87

Depth 2342 m Progress 0 m Hole Size 216 mm Status Dry hole Mud: Wt Air kg/rn' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

mg/L Cal. mg/L kg/m' Rate Umin

kg/m' Rate Umin kg/m'

mm Salt Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

No. 5 BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 216 m 2 Drill Actual 4.50 Type HP13G m 3 Reaming S.N. MM6056 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 0.75 Wt. - daN 2 - 4 000 m 6 Trips 7.50 r/min 50 - 70 m 7 Lubr. Rig Out - m In PUMP

Liner Length No. mm mm SPM

8 Repair Rig In - m 2342 9 Cut Off D.L. Metres 10 Dev. Survey Hours 1 159 229 11 Wireline Log Condition 2 159 229 145 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 5000 1600 118 133 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Leak-off 1.00 24 Test Casing 1.25 25 Blow Casing 9.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Picked up and ran 114 mm OD drillpipe. Tagged float collar at 2326 m KB. Broke circulation and drilled out float collar to 2330 m KB. Circulated bottoms up. Pressure tested casing to 1 400 kPa low and 27 000 kPa high, okay. Drilled out cement and drilled to 2342 m KB. Circulated bottoms up. Ran formation integrity test, determined leak-off gradient: 19.6 kPa/m. Bled off pressure. Rigged in air equipment. Unloaded water and blow casing to dry at report time.

Air circulation Rate: 95 m'/min at 2070 kPa, temperature: 80°C

*Adjusted cumulative cost by $10 068. Page No. 105

ESTIMATED COSTS: DAILY $ 40 960 CUMULATIVE $ 3 874 840 SUPERVISOR M. Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

Weather Cloudy Wind NW at 25 km/h Temp -5 °C Road Good Date 97 02 22 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 88 Depth 2 441 m Progress 99 m Hole Size 216 mm Status Blowing hole dry Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 5 2 352 m 1 ° 1 RU & RD Size - mm 216 2 361 m 1/2 2 Drill Actual 17.00 Type HP13G 2 371 m 1/4 ° 3 Reaming S.N. MM6056 2 400 m 1 1/8 ° 4 Coring Jets - mm 3 x 15.9 2 438 m 1/8 5 Cond. Hole 3.50 Wt. - daN 2 - 10 m ° 6 Trips r/min 50 - 70 m 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m 2 342 Liner Length 9 Cut Off D.L. Metres 99 No. mm mm SPM 10 Dev. Survey 3.25 Hours 19 1 159 229 11 Wireline Log Condition INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continue to blow hole dry for 15 minutes every 2 m intervals while drilling from 2 342 m -2 355 m. Survey-misrun, blow hole, survey, drill 2 355 m - 2 365 m, survey. Could not get to bottom after survey, hole not drying up as mud began coming in from fractures in formation. Commence soap injection at 12 litres/minute and blow hole clean and survey. Drill from 2 365 m - 2 367 m, 95% formation returns. Blow hole clean and survey. Drill from 2 367 m - 2 374 m, blow hole and survey. Drill from 2 374 m - 2 403 m, 95% formation returns. Survey at 2 400 m. Estimated departure from original hole = 0.99 m. Mud returns declined to almost nil, drill from 2 403 m - 2 441 m. Pull up to recover string float. Run in and survey. Mud returns increased, appears to also be contaminated cement. Returns now 50% formation. Rig service, blow hole. Discontinue soap at 04:00 hrs. Hole dry at 06:00 hrs. Continue to blow hole. Held safety meeting.

Air flow at 95 m'/minute, temperature 80 °C Air Pressure 2 760 kPa Accumulator draw down: Start 21 000 kPa - Finish 10 200 kPa Recharge 1 minute 55 seconds.

DAILY DRILLING REPORT

Page No. 106

J

Date 97 02 23 Weather Cloudy Calm Temp -15 °C Road Good Day No. 89 Rig Ralex, 1 Well GENOIL et al ST. LEONARD NO. 1

Desander Underflow Wt. Desander Overflow Wt. Centrifuge Overflow Wt.

mPa.s YP Pa Gels Pa mg/L Cal. mg/L

kg/m3 Rate Umin kg/m3 Rate Umin

kg/m3

ESTIMATED COSTS: DAILY $ 40 894 CUMULATIVE $ 3 915 734 SUPERVISOR M. Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Depth 2 450 m Progress Mud: Wt Air kg/m3 Visc. Methyl Blue Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

9 m Hole Size s/L W.L. % Filter Cake

kg/m3 Rate kg/m3 Rate

kg/m3

216 mm Status Tripping cm3 pH PV

mm Salt Umin Umin

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 5 6* 2 438 m 1 1 RU & RD Size - mm 216 216 2 447 m 3/4 2 Drill Actual 0.25 Type HP13G HP43A m 3 Reaming S.N. MM6056 2 348 m 3/4 4 Coring Jets - mm 3 x 15.9 3 x 15.9 2 376 m 1/2 5 Cond. Hole 8.75 Wt. - daN 2 - 12 m 6 Trips 13.00 r/min 35 - 70 m 7 Lubr. Rig Out - m 2 450 2 450 PUMP 8 Repair Rig In - m 2342 Liner Length 9 Cut Off D.L. Metres 108 No. mm mm SPM 10 Dev. Survey 2.00 Hours 10.5 1 159 229 11 Wireline Log Condition 2-2-1 INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Blow hole dry. Re-survey at 2 438 m 1° - drilling from 2 441 m to 2 450 m. Mud at surface after drilling 0.50 m. Iniected soap at 12 litres/minute and unload hole 85% formation returns. Attempted to blow hole dry, no success, 1/2 inch stream mud returns. Trip out of hole. No hole problems. Pick up kick off assembly and RIH and survey at 2 348 m and 2 376 m. RIH could not pass 2 400 m. Pick up kelly. Apply air up to 2 070 kPa. Could not get returns to surface. Suspect motor failure. Continue to pump air. Returns at surface, gas blow 2.5 minutes. Attemp to drill ahead. No progress. POOH to change motor. Function BOP's. Check motor shut offs. New motors on location at 23:00 hrs.

Air flow at 62 - 95 m3/minute, temperature 80 °C Air Pressure 2 070 kPa - 2 760 kPa * Broken Teeth 2 cones

Page No. 107

ESTIMATED COSTS: DAILY $ 35 035 CUMULATIVE $ 3 950 769 SUPERVISOR M. Kramps

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Calm Temp -14 °C Road Good Date 97 02 24 Weather GENOIL et al ST. LEONARD NO. 1

Blow Hole For Survey m Progress kg/rn3 Visc. cm' pH

Ralex, 1 Day No. 90 Well Depth 2 505 Mud: Wt Air Methyl Blue Solids Desilter Underflow Wt.

PV mm Salt

Umin Desander Underflow Wt.

mPa.s YP Pa Gels Pa mg/L Cal. mg/L kg/m' Rate Umin

kg/m' Rate Umin kg/m'

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt.

Rig 55 m Hole Size 216 mm Status

s/L W.L. % Filter Cake kg/m' Rate

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 6RR 2 405 m 1 1 RU & RD Size - mm 216 2 436 m 1/2 2 Drill Actual 10.00 Type HP43A 2 461 m 2.5 3 Reaming S.N. JD1708 2 489 m 4.5 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 2.75 Wt. - daN 1 - 10 m 6 Trips 8.00 r/min 40 m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m 2450 Liner Length 9 Cut Off D.L. Metres 55 No. mm mm SPM 10 Dev. Survey 3.25 Hours 9 1 159 229 11 Wireline Log Condition INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Mist drilling with 50 m'/minute air and 12 litres/minute soap at a velocity of 1 646 m/minute. 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) POOH change out motor for Black Max air drilling bent housing motor with a 1.50 degree setting. RIH to 2 374 m. Install rotating head

seal assembly. Air blow hole clean while picking up singles to a depth of 2 424 m. Blow hole, Run directional survey. Blow hole clean while picking up singles to total depth of 2 450 m. Blow hole. Run directional survey. Orientate motor to a setting of 360 degree azimuth. Work pipe while air blowing hole clean. Run survey to check orientation of air drilling bent housing motor. Air drilled from 2 450 m to 2 471 m in a slide mode with a directional heading of 90 degrees azimuth. Rotate from 2 471 m to 2 476 m. Blow hole. Retrieve string float and survey. Blow hole clean 2.5 m of FRC. Rotate and drill from 2 476 m - 2 504 m. Blow hole clean.

Air flow at 50 m'/minute, temperature 80 °C Air Pressure 2 160 kPa

Page No. 108

1

CrISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Wind West 5 km/hr Temp -25 °C Road Good Date 97 02 25

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 91 Depth 2 549 m Progress 44 m Hole Size 216 mm Status Drilling Mud: Wt Air kg/m3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Vit. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 6RR 7 2 489 m 4.65 1 RU & RD Size - mm 216 216 2 499 m 4.35 2 Drill Actual 3.75 Type HP43A HP51H 2 526 m 3.20 3 Reaming 1.50 S.N. JD1708 LH9671 m 4 Coring Jets - mm 3 x 15.9 3 x 15.9 m 5 Cond. Hole 5.00 Wt. - daN 1 - 10 2 - 6 m 6 Trips 8.75 r/min 40 60 - 120 m 7 Lubr. Rig Out - m 2515 PUMP 8 Repair Rig In - m 2 450 2 515 Liner Length 9 Cut Off D.L. Metres 65 34 No. mm mm SPM 10 Dev. Survey 2.75 Hours 11.25 3.75 1 159 229 11 Wireline Log Condition 2-2-I INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Increased flow rate after drilling to 2 534 m from 50 m'/minute to 64 m3/minute for better hole cleaning. 21 Handle Tool Increased annular velocity from 1 900 m/minute to 2 400 m/minute. 22 Clean to Btm

23 24 Attempt to 25 blow hole 2.25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Retrieve string float. Survey. Blow hole clean, Drilled from 2 504 m to 2 514.89 m. Retrieve string float. Survey. Attempt to blow hole. No air returns. Pull to the shoe. Attempt to blow hole. No air returns. Pull 15 stands. Attempt to blow hole. No air returns. POOH. Bit plugged. Lay down air motor. Pick up new bit and RIH with rotary assembly to the shoe at 2 340.5 m. Blow hole. No mud in returns.

RIH to 2 474 m. Blow hole and precautionary ream from 2 474 m to 2 515 m. Drilled from 2 515 m to 2 534 m. Retrieve string float. RIH. 12 m of fill. Blow hole clean and ream to bottom. Survey. Blow hole. Drilled from 2 534 m to 2 549 m at 06:00 hrs. Function BOP's Check motor shut offs.

Air flow at 64 m'/minute, temperature 80 °C Air Pressure 2 100 kPa Injecting 12 litres/minute of soap

ESTIMATED COSTS: DAILY $ 40 660 CUMULATIVE $ 3 991 429 SUPERVISOR M. Kramps

Page No. 109

1

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Wind West 20 km/hr Temp -5 °C Road Good Date 97 02 26 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 92 Depth 2 684 m Progress 135 m Hole Size 216 mm Status Working Tight Hole Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 7 2 576 m 1.50 1 RU & RD Size - mm 216 m 2 Drill Actual 8.25 Type HP51H m 3 Reaming S.N. LH9671 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 2.75 Wt. - daN 2 - 6 m 6 Trips r/min 60 - 120 m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m 2 515 Liner Length 9 Cut Off D.L. Metres 169 No. mm mm SPM 10 Dev. Survey 1.00 Hours 10.75 1 159 229 11 Wireline Log Condition INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional BHA = Bit + Bit Slik + 171 mm Monel + 3 x 171 mm DC+ Jars + 4 x 171 mm DC + HWDP. 21 Handle Tool Total length = 143.27 m. Lenght below jars = 38.34 m 22 Clean to Btm

23 24 Work tight 25 hole 12.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drill from 2 534 m to 2 591 m. Blow hole. Retrieve float. Blow hole. Survey. Drill form 2 591 m to 2 684 m. Observed increased air pressure of 1 100 kPa. Attempt to pull off bottom. Pull 25 000 daN over string cut. No upwards movement. Jars not working. Could rotate on bottom for 2 hours. Lost rotation. Cannot circulate with 7 000 kPa pressure, Air pressure does not bleed down. Working tight hole at 06:00 hrs. Circulating pressures were 2 100 kPa at 2 534 m at 64 m3/min and 2 200 kPa at 2 684 m at 64 m3/min.

Air flow at 64 m3/minute, temperature 80 °C Air Pressure 2 200 kPa Injecting 12 - 20 litres/minute of soap

ESTIMATED COSTS: DAILY $ 30 182 CUMULATIVE $ 4 021 611 SUPERVISOR M. Kramps

Page No. 110

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Calm Temp +2 'C Road Good Date 97 02 27 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 93 Depth 2 684 m Progress Nil m Hole Size 216 mm Status Running Free Point Mud: Wt Air kg/m3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

No. 7 BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 216 m 2 Drill Actual Type HP51H m 3 Reaming S.N. LH9671 m ° 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 0.50 Wt. - daN 2 - 6 m 6 Trips 12.75 r/min 60 - 120 m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m 2 515 Liner Length 9 Cut Off O.L. Metres 169 No. mm mm SPM 10 Dev. Survey Hours 10.75 1 159 229 11 Wireline Log Condition INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Uminm/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work stuck pipe 5.75 24 Run free point 4.75 25 Back off drillpipe 0.25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Work tight hole. Make a mechanical back off at 1 958 m to enable recovery of string float. Back off successfully. Blow hole clean. No

formation and no mud at surface after 30 minutes. POOH no hole drag. Change out drill pipe. Total Grade "G" in the hole 1 363 m. Total new Grade "E" 591 m. Rest of the drill pipe in the hole used Grade "E". Screw back into fish and torque up same. Work string to 160 daN. Calculated safety margin at 80% 164 daN still could not set jars to work. Safety meeting held. Rig up and run free point. Back off point should be at 2 568 m leaving 116 m of fish in the hole. Running free point indicator at report time.

ESTIMATED COSTS: DAILY $ 26 606 CUMULATIVE $ 4 048 217 SUPERVISOR M. Kramps

Page No. 111

Good Date 97 02 28 Temp -5 °C Road Weather Cloudy Wind North West 15 km/hr

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 94 Depth 2 684 m Progress Nil m Hole Size

216 mm Status Running in the hole

Mud: Wt Air kg/rn' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake

mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m'

Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 7 m 1 RU & RD Size - mm 216 m 2 Drill Actual Type HP51H m 3 Reaming S.N. LH9671 m 4 Coring Jets - mm 3x15.9 m 5 Cond. Hole 1.75 Wt. - daN 2 - 6 m 6 Trips 6.50 r/min 60 - 120 m 7 Lubr. Rig Out - m Lost in hole PUMP 8 Repair Rig 0.25 In - m 2 515 Liner Length 9 Cut Off D.L. Metres 169 No. mm mm SPM 10 Dev. Survey Hours 10.75 1 159 229 11 Wireline Log Condition INC 2 159 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 15.50

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Fish left in hole: 21 Handle Tool Bit + Bit Sub + 1 x 171 mm Monel DC + 3 x 171 mm DC + Jars + 4 x 171 mm DC + xo + 22 Clean to Btm 6 x 114 mm HWDP + 1 x114mmDP 23 Total Length = 152.52 m 24 Top of fish = 2531.48 m 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Run free point indicator. Established free point of 88% at 2 577.3 m. Pull out of the hole with free point indicator. Lay down tools. Safety meeting. Ensure radio silence. Block entrance to location. Rig up string shot. RIH. Attempt to correlate shot-back off point. CCL installed in the wrong mode. Pull out tools and change out CCL. RIH with tool. Position string shot at 2 577.3 m. Back off successful . POOH with wireline tools. Work pipe with 70 000 daN over string weight. Repair draworks. Lay down 1 single and pick up kelly and continue to work pipe and attempt to circulate. No success. Rig up loggers. Safety meeting held. Ensure radios silence. Block entrance to location. Rig up string shot. RIH with tool. Back off one single above HWDP at 2 531.48 m. POOH with tools. POOH with drill pipe. Slip and cut drilling line. Condition surface mud. RIH with open ended drill pipe.

ESTIMATED COSTS: DAILY $ 31 067 CUMULATIVE $ 4 079 284 SUPERVISOR M. Kramps

Page No. 112

J

C BISSETT RESOURCE CONSULTANTS LTD. `N DAILY DRILLING REPORT

Weather Clear Calm Temp Well GENOIL et al ST. LEONARD NO. 1 Depth 2 684 m Progress Nil m Hole Size 216 mm Status Circulate and condition mud Mud: Wt 1 070 kg/m' Visc. 70 s/L W.L. 7.0 cm3 pH 9.0 PV 37 mPa.s YP 11.5 Pa Gels 4/12 Pa Methyl Blue 40 Solids 10 % Filter Cake 2 mm Salt 40 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3

Umin Desander Underflow Wt. kg/m3 Rate Umin Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. kg/m3

No. BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm m0 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 22.25 Wt. - daN m 6 Trips 1.75 r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 229 11 Wireline Log Condition 2 140 229 90 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Gel 132 sxs PP Output AV Power 15 Test BOP Drispac 3 sxs kPa Umin m/min kW 16 DST Caustic 2 sxs 2 500 1 000 38 42 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) RIH with open ended drill pipe to 2 331 m. Condition surface volume. Displace surface volume. No returns. Continue to build more volume. Displace same, circulate and condition mud. Stage in hole with one stand at a time. Circulating bottoms up after each stand. Tag fish at 2 531 m. Circulate and condition mud and rig up cementing equipment. No fill on top of fish. Motor shut offs checked. Rig services new.

ESTIMATED COSTS: DAILY $ 63 893 CUMULATIVE $ 4 143 172 SUPERVISOR M. Kramps

Page No. 113

0 °C Road

Good

Date 97 03 01 Rig Ralex, 1 Day No. 95

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Calm Temp +4

°C Road Good Date 97 03 02

Rig 216 mm Status

Ralex, 1 Day No. 96 Circulate hole clean

Well GENOIL et al ST. LEONARD NO. 1 Depth 2 340 m Progress Nil m Hole Size Mud: Wt 1 050 kg/m3 Visc. 55 s/L W.L. 7.0 Methyl Blue 38 Solids 0.05 % Filter Cake Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3

cm' pH 10.0 PV 2 mm Salt

30 mPa.s YP 10 Pa Gels 110 Pa 400 mg/L Cal. 80 mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 8RR m 1 RU & RD Size - mm 216 m 2 Drill Actual

3 Reaming 4 Coring 5 Cond. Hole 5.00 6 Trips 11.50 7 Lubr. Rig 8 Repair Rig 0.50

Length 9 Cut Off D.L. mm SPM 10 Dev. Survey 229 11 Wireline Log

140 229 90 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 7 000 1 000 38 116 17 Plug Back 1.50

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Plan on condition surface volume. Polish plug to 2 360 m. Displace to mud - trip out for sidetrack 21 Handle Tool assembly. 22 Clean to Btm

23 Displace to H2O 2.50 24 Drill cement 3.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulate and condition mud. Held safety meeting. Rig in Cementers. Pressure test lines to 17 MPa. Spear head with 3m3 water followed by 12.2m3 of oilwell class "G" + 6.0 litres/tonne of D81 + 1.0% D65. Displaced with 0.8m3 water and 13.5m3 of mud. Bleed off. Pull back to 2 246 m. Circulate 2m3 of good cement returns. POOH. Check for cement in tool joints and in drill pipe tube. Make up drilling assembly and RIH to 2 246 m. Displace hole to water. Work on pumps. Drill out cement from 2 246 m to 2 340 m. Circulate. Condition surface mud to 1 250 kg/m3. Add 2 kg/m3 of bicarbonate for cement contamination when sidetracking. Motor shut off checked. Safety meetings held.

Jets - mm 3 x 15.9 Wt. - daN 2-5 r/min 60 Out - m In - m 2246 Metres 94

Type HP43A

Condition INC

S.N. JD1708

Hours 3 No.

1 2

Liner mm 140

m m m m m PUMP

ESTIMATED COSTS: DAILY $ 59 122 CUMULATIVE $ 4 202 299 SUPERVISOR M. Kramps

Page No. 114

Date 97 03 03 Day No. 97

Weather Clear Calm Temp -12 'C Road Good Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Depth 2 360 m Progress 20 m Hole Size 216 mm Status Tripping

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Mud: Wt 1 070 kg/m' Visc. 100 s/L W.L. 8.0 cm3 pH 11.0 PV 20 mPa.s YP 15 Pa Gels 13/28 Pa Methyl Blue 66 Solids 0.05 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m' Rate L/min Desilter Overflow Wt. kg/m' Rate 1.../min Desander Overflow Wt. kg/m' Rate 1../min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 8RR m 1 RUBRD Size - mm 216 m 2 Drill Actual Type HP43A m 3 Reaming S.N. JD1708 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole Wt. - daN 2 - 5 m 6 Trips 0.75 r/min 60 m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m 2246 Liner Length 9 Cut Off D.L. Metres 114 No. mm mm SPM 10 Dev. Survey Hours 4.75 1 140 229 11 Wireline Log Condition INC 2 140 229 90 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Gell 65 sxs PP Output AV Power 15 Test BOP Barite 135 sxs kPa L/min m/min kW 16 DST Drispac 5 sxs 2 500 1 000 38 42 17 Plug Back Bicarb 12 sxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Mud in hole 37 vis. Density 1 015 kq/m'. 21 Handle Tool Build to 15° by 2 438 azimuth 30 - 8 m departure. 22 Clean to Btm Build to 15° by 2 500 azimuth 30 - 30 m departure. 23 Drill cement 1.75 Build to 15° by 2 630 azimuth 30 - 62 m departure. 24 WOC and

Build to 15° by 2 700 azimuth 30 - 81 m departure. 25 condition mud 21.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulate after drilling out cement to the shoe at 2 340 m. Condition surface volume. Drill out cement from 2 340 m to 2 360 m. Circulate. Pull back into shoe. Rig service. Circulate and condition surface volume. Rig service. Circulate and condition surface volume while waiting on side track tools. POOH to pick up side track tools. Plan to build to 15° or slightly higher in a North to Northeast direction. Expect side track tools on location 12:00 hrs, 97 03 03. Function tested BOPS. Motor shut offs checked. Held BOP drills.

ESTIMATED COSTS: DAILY $ 28 713 CUMULATIVE $ 4 231 012 SUPERVISOR M. Kramps / D. Gaboury

Page No. 115

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Well GENOIL et al ST. Depth 2 360 m Progress Mud: Wt 1 020 kg/rn' Visc.

Temp -10 °C Road LEONARD NO. 1

57 s/L W.L. 11 cm' pH 9.0

Good Date 97 03 04 Rig Ralex, 1 Day No. 98

Running in hole PV 19 mPa.s YP 8 Pa Gels 4/8 Pa

0 m Hole Size 216 mm Status

Methyl Blue 35 Solids 0.01 % Filter Cake 2 mm Salt 400 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5

RU & RD Drill Actual Reaming Coring Cond. Hole

6 Trips 5.0 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 5.0 21 Handle Tool 22 Clean to Btm 23 Wait on tools 6.0 24 Mix new mud 7.5 25

No. 9 Size - mm 216 Type HP51A (51.7) S.N. DM9154 Jets - mm 3 x 15.9 Wt. - daN r/min Out - m In - m 2360 Metres Hours Condition INC

Soda Ash 1 sx

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Xan-vis should be on location by 18:00.

BITS SURVEYS m m m m m m m

PUMP

Liner Length No. mm mm

1 140 229 2 140 229

DRILLING MUD ADDITIVES USED: HYDRAULIC Gell 60 sxs PP Output AV Kalzan 5 sxs kPa L/min m/min Caustic 1 sx

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pull out of hole. Dump and clean mud tanks. Weld and repair as required. Fill with fresh water and mix mew mud while waiting on directional tools. Rig up MWD instrumentation and continue to mix new mud. Pick up mud motor and MWD and orientate same. Pick up kelly and test tools. All okay. Ran in hole and test MWD tools every 15 stands.

Serviced rig and function tested BOPs.

ESTIMATED COSTS: DAILY $ 30 682 CUMULATIVE $ 4 261 694 SUPERVISOR M. Kramps / D. Gaboury

Page No. 116

Date 97 03 05 Weather Flurries Temp -6 °C Road Good

ESTIMATED COSTS: DAILY $ 45 705 CUMULATIVE $ 4 307 403 SUPERVISOR M. Kramps / D. Gaboury

Ralex, 1 Day No. 99 Drilling

17.5 Pa Gels 13/21 Pa mg/L Cal. 60 mg/L

cm' pH 9.5 PV 22 mPa.s YP 2 mm Salt 400

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Depth 2 416 m Progress 56 m Hole Size 216 mm Status Mud: Wt 1 075 kg/m' Visc. 72 s/L W.L. 9.0 Methyl Blue 30 Solids 0.04 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m' 6 RPM = 18 ; 3 RPM = 15

No. 9 BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD

Size - mm 216 m 2 Drill Actual 14.25 Type HP51H m ° 3 Reaming S.N. DM9154 m 4 Coring Jets - mm 3 x 15.9 m 5 Cond. Hole 3.75 Wt. - daN 2-10 m 6 Trips 5.50 r/min 40-80 m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m 2360 Liner Length 9 Cut Off D.L. Metres - No. mm mm SPM 10 Dev. Survey Hours 1 140 229 115 11 Wireline Log Condition INC 2 140 229 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Drispac - 3 sxs Gel - 70 sxs PP Output AV Power 15 Test BOP Xan-vis - 3 sxs Barite - 100 sxs kPa Umin m/min kW 16 DST Bicarb - 2 sxs 7 500 1 300 90.5/49 162 17 Plug Back Kelsan - 6 sxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran in hole and serviced rig. Function tested BOPs. Ran in hole and tested tools every 15 stands. Tagged cement at 2 360 m.. Orientated and directionally drilled from 2 360 to 2 392 m KB. Serviced rig and function tested BOPs. Circulated and conditioned mud. Orientated and directionally drilled from 2 392 to 2 416 m KB.

Conditioned mud and brought up mud density while drilling. Mud additives on location at 18:00.

Page No. 117

J

kg/m' Rate Umin kg/m' Rate Umin kg/m'

Umin Umin

Desander Underflow Wt. Desander Overflow Wt. Centrifuge Overflow Wt.

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing Wind SW 30 km/hr Temp -5 °C Road Very Poor

Date 97 03 06 Well GENOIL et al ST. LEONARD NO. 1 Rig

Ralex, 1

Day No. 100 29 m Hole Size 216 mm Status Tripping

60 s/L W.L. 9.0 cm' pH 9.0 PV 29 mPa.s YP 16 Pa Gels 18/28 Pa 2 mm Salt 400 mg/L Cal. 60 mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate

Centrifuge Overflow Wt. kg/m'

Depth 2 445 m Progress Mud: Wt 1 200 kg/rn' Visc. Methyl Blue 30 Solids 0.10 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow WL kg/m' Rate Centrifuge Underflow Wt. kg/m'

Umin Umin

PP kPa 9 500

No. 8 Size - mm 216 Type HP51H S.N. DM9154 Jets - mm 3 x 15.9 Wt. - daN 2-10 r/min 40 - 80 Out - m In - m 2360 Metres 85 Hours 34.0 Condition INC

DRILLING MUD ADDITIVES USED: Barite 863 sxs Gel 13 sxs Xanuis 6 sxs Drispac 2 sxs

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual

20.25 3 Reaming 4 Coring ° 5 Cond. Hole

6 Trips 3.25 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 115 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

205 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

SURVEYS 2 413.03 m 1.7 2 422.61 m 1.9

m m m m m

PUMP Liner Length

No. mm mm 1 140

235 2 140

235

HYDRAULIC Output AV Umin m/min 1 300 90.5/49

BITS

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling from 2 416 m to 2 445 m with surveys. Trip. Suspect motor failure. Rig Services. BOP drills held.

ESTIMATED COSTS: DAILY $ 48 791 CUMULATIVE $ 4 356 194 SUPERVISOR M. Kramps / D. Gaboury

Page No. 118

J

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 15.00

2 431.55 SURVEYS

m 1.9 2 440.56 m 2.1 ° 2 450.16 m 2.2 2 459.18 m 2.2 °

m m °

No. 1 2

m PUMP

Liner Length mm mm

140 235 140 235

BITS 4 216 HP51H DM9154 3-15.9 2-10 40/80 2445 2 360 85 34.0 1 -1 -No-A-E-I-Dae

DRILLING MUD ADDITIVES USED: Barite 94 sxs Xanuis 2 sxs

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

No. 5 Size - mm 216 Type SYH (215) S.N. LF8420 Jets - mm 2/15.9 1/11.1 Wt. - daN 13-14 r/min 30 - 120 Out - m In - m 2 445 Metres 30 Hours 15.0 Condition INC

3 Reaming 4 Coring 5 Cond. Hole 6 Trips 7.50 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L. 0.75

SPM 10 Dev. Survey 11 Wireline Log

115 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

216 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

HYDRAULIC PP

Output AV kPa

L/min m/min 10 000

1 300 90.5/49

ita BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Rig 216 mm Status

Weather Well

GENOIL et al ST. LEONARD NO. 1 Depth 2 475 m Progress 30 m Hole Size Mud: Wt 1 200 kg/m' Visc. 62 s/L W.L. 9.0 Methyl Blue 30 Solids 10 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

Date 97 03 07 Ralex, 1

Day No. 101 Drilling

23 mPa.s YP 18.5 Pa Gels 16/23 Pa 400 mg/L Cal. 160 mg/L kg/m' Rate Umin kg/m' Rate Umin kg/m'

cm' pH 9.0 PV 2 mm Salt

Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

Stormy Temp -7 °C Road Good

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Change out mud motors and reset to 1.5° bent housing angle. Pick up 2 DCs. RIH. BHA to DP. Test MWD. Slip and cut. RIH. Fill pipe twice. Clean 1/2 m to bottom. Drill with Sperry-Sun from 2 445 m to 2 475 m.

Rio services. BOP drills held. Function BOPs.

ESTIMATED COSTS: DAILY $

34 458 CUMULATIVE $ 4 390 652 SUPERVISOR

D. Gaboury / M. Kramps

Page No. 119

Rig GENOIL et al ST. LEONARD NO. 1

400 mg/L Cal. 160 mg/L Methyl Blue 35 Solids 0.10 % Filter Cake 2 mm Salt

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp -12 0 C Road Good Date 97 03 08 Day No. 102 Ralex, 1

Weather Well

HYDRAULIC Output AV Umin m/min 1300 90.5/49

PP kPa

10 000

ESTIMATED COSTS: DAILY $ 36 131 CUMULATIVE $ 4 426 783 SUPERVISOR D. Gaboury/R. Genest

°69.10

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

°82.90 2 Drill Actual 23.25 0 87.4 3 Reaming 0 95.3 4 Coring

5 Cond. Hole 6 Trips 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log

115 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

216 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

No. 5 Size - mm 215.9 Type STC 3VH S.N. LF8420 Jets - mm 2x15.9/1x11.1 Wt. - daN 13-14000 r/min 30 - 60 Out - m In In - m 2445 Metres 68 Hours 40.25 Condition Run

DRILLING MUD ADDITIVES USED: 89 sxs Barite 3 sxs Drispac 2 sxs Xanuis

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

SURVEYS 2468.69 m 2.60 2478.11 m 3.20 2487.68 m 3.90 2497.18 m 5.00

m m m

PUMP Liner Length mm mm 140 235 140 235

BITS

No. 1 2

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled ahead with Sperry-Sun from 2475 m to 2513 m. Three rig services. Held safety meeting and BOP drill with crew. Function tested BOPS.

RSPP 2: 4100 kPa at 55 SPM

Page No. 120

I

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt.

kg/m' Rate Umin kg/m' Rate Umin

kg/m'

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp -22 'C Road Good Rig Ralex, 1 GENOIL et al ST. LEONARD NO. 1

Weather Well

Date 97 03 09 Day No. 103

Depth 2540 m Progress 27 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 Methyl Blue Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt.

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 4RR 5 2508 m 6.00 '93.90 1 RU&RD Size - mm 215.9 215.9 2517 m 6.80 '101.90 2 Drill Actual 13.00 Type HP51A SVH m 3 Reaming S.N. DM9154 LF8420 m 4 Coring Jets - mm 1x14.3/2x11.1 2x15.9/1x11.1 m 5 Cond. Hole 1.75 Wt. - daN 14 000 13 - 14 000 m 6 Trips 8.50 r/min Slid 30 / 60 m 7 Lubr. Rig 0.50 Out - m In 2514 PUMP 8 Repair Rig In - m 2514 2445 Liner Length 9 Cut Off D.L. Metres 26 69 No. mm mm SPM 10 Dev. Survey 0.25 Hours 12.00 41.25 1 140 235 115 11 Wireline Log Condition Run 6-8-1 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

86 sxs Barite PP Output AV Power 15 Test BOP 2 sxs Drispac kPa Umin m/min kW 16 DST

1 sx Xanuis 10 000 1300 90.5/49 216 17 Plug Back 1 sx Caustic 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled from 2513 m to 2514 m. Serviced rig, surveyed and pumped pill. Laid down 22 singles. Tripped out and laid down motor and picked up new motor. Tripped in and broke circulation at 38 stands and 60 stands. Cleaned to bottom - 2.0 m fill. Orientated tool and drilled. Slid from 2518 m to 2540 m.

RSPP 1: 3500 kPa at 50 SPM Function tested blind rams

19 Pa Gels 13/18 Pa mg/L Cal. 100 mg/L kg/m' Rate Umin

kg/m' Rate Umin kg/m'

kg/m3 Visc. 60 s/L W.L. 8.0 cm3 pH 9.0 PV 32 mPa.s YP 35 Solids 0.10 % Filter Cake 2 mm Salt 400

ESTIMATED COSTS: DAILY $ 31 131 CUMULATIVE $ 4 457 914 SUPERVISOR D. Gaboury/R. Genest

Page No. 121

ESTIMATED COSTS: DAILY $ 41 094 CUMULATIVE $ 4 499 008 SUPERVISOR D. Gaboury/R. Genest

Page No. 122

BISSETT RESOURCE CONSULTANTS LTD. 411

DAILY DRILLING REPORT

Snowing Temp -6 °C Road Fair Date 97 03 10 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 104

Depth 2610 m Progress 70 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/rn3 Visc. 70 s/L W.L. 8.0 cm3 pH 9.0 PV 38 mPa.s YP 26 Pa Gels 17/23 Pa Methyl Blue 40 Solids 10 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. 1570 kg/m' Centrifuge Overflow Wt. 1070 kg/m'

BITS No. 4RR

SURVEYS 2526 m 8.00

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8

RU & RD Size - mm 215.9 2536 m 9.80 Drill Actual 23.25 Type HP51A 2545 m 10.8 Reaming S.N. DM9154 2555 m 11.3 Coring Jets - mm 1x14.1/2x11.1 2564 m 11.4 Cond. Hole

Wt. - daN 12 000 2574 m 11.8 Trips r/min 50 2602 m 13.5 Lubr. Rig 0.75 Out - m In PUMP Repair Rig In - m 2514 Liner Length 9 Cut Off D.L. Metres 96 No. mm mm SPM 10 Dev. Survey Hours 33.25 1 140 235 11 Wireline Log Condition Run 2 140 235 120 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

9 sxs Xanuis PP Output AV Power 15 Test BOP 2 sxs Caustic kPa Umin m/min kW 16 DST

22 sxs Gel 12 000 1300 90.5/49 216 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Gas show at 2598 m to 2599 m - 214 units

20 21

Directional Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotary drilled from 2540 m to 2600 m with surveys. Slid from 2600 m to 2605 m. Rotary drilled from 2605 m to 2615 m. Azimuth readings assumed not functional below 2526 m because of proximity to fish.

String weight: 75 000 daN Hole drag: 8 - 12 000 daN Down: 4 - 8 000 daN

RSPP 2: 3800 kPa at 50 SPM (Ran cent, for 1 circulation = 2.00 hours)

J

Weather

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotary drilled from 2610 m to 2628 m. Surveyed at 2611 m. Dummy tripped to casing. Pumped out one single 20 000 daN over on second stand off bottom, then decreased to normal drag near end of stand. Cleaned to bottom - 2.0 m fill. Drilled from 2628 m to 2681 m - slide.

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotary drilled from 2610 m to 2628 m. Surveyed at 2611 m. Dummy tripped to casing. Pumped out one single 20 000 daN over on second stand off bottom, then decreased to normal drag near end of stand. Cleaned to bottom - 2.0 m fill. Drilled from 2628 m to 2681 m - slide.

RSPP 2: 5300 kPa at 60 SPM RSPP 2: 5300 kPa at 60 SPM

Hole Drag Up: 8 - 12 000 Hole Drag Up: 8 - 12 000 Hole Drag Down: 6 - 8 000 Hole Drag Down: 6 - 8 000

TIME DISTRIBUTION

e Up

18 Squeeze Cmt 19 Fishing

21 Handle Tool 22 Clean to Btm 23 24 25

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -7 'C Road

Good

Date 97 03 11 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 105 Depth 2651 m Progress 41 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/m' Visc. 60 s/L W.L. 7.5 cm' pH 9.0 PV 34 mPa.s YP 25 Pa Gels 17/22 Pa Methyl Blue 40 Solids 10 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate L./min Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

ESTIMATED COSTS: DAILY $ ESTIMATED COSTS: DAILY $ 36 774 CUMULATIVE $ 4 535 782 SUPERVISOR D. Gaboury/R. Genest 36 774 CUMULATIVE $ 4 535 782 SUPERVISOR D. Gaboury/R. Genest

Page No. 123 Page No. 123

L 1 L 1

ESTIMATED COSTS: DAILY $ 40 408 CUMULATIVE $ 4 576 190 SUPERVISOR D. Gaboury/R. Genest

BISSETT RESOURCE CONSULTANTS LTD. Cli

DAILY DRILLING REPORT

Weather Clear Temp -13 °C Road Good Date 97 03 12 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 106 Depth 2695 m Progress 44 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/m3 Visc. 70 s/L W.L. 7.0 cm3 pH 9.0 PV 30 mPa.s YP 30 Pa Gels 17/23 Pa Methyl Blue 45 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m3 Rate L/min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS No. 4RR 2639 m 16.4 °2.9

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8

RU & RD Size - mm 215.9 2648 m 16.5 °358.3 Drill Actual 22.25 Type HP51A 2658 m 16.8 '353.9 Reaming

S.N. DM9154 2667 m 16.9 °351.1 Coring Jets - mm 1x14.1/2x11.1 2677 m 16.6 °348.6 Cond. Hole Wt. - daN 12 000 m Trips r/min Slide m Lubr. Rig 0.50 Out - m In PUMP Repair Rig In - m 2514 Liner Length 9 Cut Off D.L. Metres 181 No. mm mm SPM 10 Dev. Survey 1.25 Hours 76.50 1 140 235 120 11 Wireline Log Condition Run 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

6 sxs Xanuis PP Output AV Power 15 Test BOP 1 sx Caustic kPa Umin m/min kW 16 DST

32 sxs Gel 12 500 1300 90/49 270 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Fracture Gas Peak: 980 units at 2677.8 m 21 Handle Tool Background Gas: 2677 m to 2695 m, 3 to 8 units 22 Clean to Btm Connection Gas: 2651 m to 2695 m, 2 to 8 units 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled from 2651 m to 2656 m (slide mode). Serviced rig. Rotary drilled from 2656 m to 2661 m. Drilled from 2661 m to 2684 m with surveys (slide mode). Serviced rig. Drilled from 2684 m to 2695 m with surveys (slide mode).

String Weight: 76 000 daN RSPP Pump 1: 5600 kPa at 60 SPM

Hole Drag Up: 8 - 10 000 daN Hole Drag Down: 6 - 8 000 daN

Page No. 124

ESTIMATED COSTS: DAILY $ 45 003 CUMULATIVE $ 4 621 193 SUPERVISOR D. Gaboury/R. Genest

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -19 °C Road Good Date 97 03 13 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 107

Depth 2713 m Progress 18 m Hole Size 215.9 mm Status Tripping in with bit Mud: Wt 1200 kg/m3 Visc. 75 s/L W.L. 6.0 cm' pH 9.0 PV 44 mPa.s YP 33 Pa Gels 18/24 Pa Methyl Blue 47 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 4RR 6 2686 m 16 0 344.6 1 RU & RD Size - mm 215.9 215.9 2696 m 15.6 °341.2 2 Drill Actual 9.50 Type HP51A F299R m 3 Reaming S.N. DM9154 LF3195 m 4 Coring Jets - mm 1x14.1/2x11.1 1x14.1/2x11.1 m 5 Cond. Hole 1.00 Wt. - daN 12 000 12 000 m 6 Trips 11.50 r/min Slide Slide m 7 Lubr. Rig 0.50 Out - m 2713 In PUMP 8 Repair Rig In - m 2514 2713 Liner Length 9 Cut Off D.L. 0.75 Metres 199 No. mm mm SPM 10 Dev. Survey 0.50 Hours 86.00 1 140 235 120 11 Wireline Log Condition 5-6-1 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

1 sx Xanuis PP Output AV Power 15 Test BOP 3 sxs Caustic kPa Umin m/min kW 16 DST

65 sxs Barite 12 500 1300 90/49 270 17 Plug Back 15 sxs Sawdust 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Background gas: 3 to 10 units 21 Handle Tool 22 Clean to Btm 0.25 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled from 2695 m to 2703 m (slide). Serviced ria.'Surveyed. Five-stand wiper trip (pulled tight at 2692 m and 2672 m - 35 000 daN over string weight). Drilled from 2703 m to 2713 m (slide). Surveyed. Circulated bottoms up. Tripped for bit (2700 m to 2690 m and 2680 m to 2670 m. Pulled 35 000 daN over). Changed out mud motor/service MWD/running drill collars and 1 stand drillpipe. Serviced rig - slipped and cut drill line. Tripped in hole. Broke circulation at 40 stands drillpipe.

Page No. 125

2 mm Salt Umin Desander Underflow Wt. Umin Desander Overflow Wt.

Centrifuge Overflow Wt.

cm' pH 9.0 PV 35 mPa.s YP 24 Pa Gels 17/23 Pa 400 mg/L Cal. 80 mg/L kg/m' Rate Umin

kg/m' Rate Umin kg/m'

0339.6 1 RU & RD 2 Drill Actual 6.25

BITS SURVEYS

No. 6 2704 m 14.2

Size - mm 215.9 m

Type F2PPR m °

S.N. LF3195 m

Jets - mm 1x14.1/2x11.1 m

Wt. - daN 12 000 m r/min Slide m Out - m In PUMP In - m 2713 Liner Length

Metres 14 No. mm mm Hours 6.25 1 140 235

Condition Run 2 140 _ 235

Accumulator check: Down Time on Accumulator 2.50 hours

Close Pipe 9 sec 9 600 kPa Open HCR 6 sec 8 750 kPa Recharge Time 3 min 45 sec

Function tested MWD 1.25 hours Trip for wash out 2.50 hours

Total 3.75 hours

ESTIMATED COSTS: DAILY $ 31 548 CUMULATIVE $ 4 652 741 SUPERVISOR D. Gaboury/R. Genest

CBISSETT RESOURCE CONSULTANTS LTD.

Weather Clear Temp -18 °C Road Good Date 97 03 14 Day No. 108 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Depth 2727 m Progress 14 m Hole Size 215.9 mm Status Drilling

Mud: Wt 1200 kg/rn3 Visc. 68 s/L W.L. 6.0 Methyl Blue 46 Solids 0.11 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

kPa Umin m/min 13 000 1300 90/49 _ 281

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background gas: 3 units show at 2714 m - 243 units Trip gas unit: 1254 units Ralex to supply three mew meter gauges for accumulator.

19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 10.25 23 24 25

DRILLING MUD ADDITIVES USED: HYDRAULIC

10 sxs Gel PP Output AV

• 5 Cond. Hole • 6 Trips 5.00 o 7 Lubr. Rig 0.25

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 0.25

120 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP

kW 16 DST 17 Plug Back 18 Squeeze Cmt

Page No. 126

1

Precharge pressure was low - brought up from 5 500 kPa to 7 000 kPa

DAILY DRILLING REPORT

TIME DISTRIBUTION Code/Operation Hours

3 Reaming 4 Coring

Accumulator check: Down Time on Accumulator 2.50 hours

Close Pipe 9 sec 9 600 kPa Open HCR 6 sec 8 750 kPa

Function tested MWD 1.25 hours Trip for wash out 2.50 hours

Total 3.75 hours Recharge Time 3 min 45 sec

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Revision No. 1

Weather Clear Temp -18 'C Road Good Date 97 03 14

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 108

Depth 2727 m Progress 14 m Hole Size 215.9 mm Status Drilling

Mud: Wt 1200 kg/rn3 Visc. 68 s/L W.L. 6.0 cm3 pH 9.0 PV 35 mPa.s YP 24 Pa Gels 17/23 Pa

Methyl Blue 46 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 6 2704 m 14.2 °339.6 1 RU & RD Size - mm 215.9 m 2 Drill Actual 6.25 Type F2PPR m 3 Reaming

S.N. LF3195 m 4 Coring Jets - mm 1x14.1/2x11.1 m 5 Cond. Hole Wt. - daN 12 000 m 6 Trips 5.00 r/min Slide m 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig In - m 2713 Liner Length 9 Cut Off D.L. Metres 14 No. mm mm SPM 10 Dev. Survey 0.25 Hours 6.25 1 140 235 120 11 Wireline Log Condition Run 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

10 sxs Gel PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

13 000 1300 90/49 281 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Background gas: 3 units show at 2714 m - 243 units 21 Handle Tool Trip gas unit: 1254 units 22 Clean to Btm 1.25 Ralex to supply three mew meter gauges for accumulator. 23 Accumulator 2.50

24 Crown Prob. 7.25 25 MWD Check 1.25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Accumulator check - worked rams - increased precharge. Tripped in to bridge at 2559 m and 2596 m. Cleaned to bottom from 2694 m to 2713 m (2 m fill). Serviced rig. Rotary drilled from 2713 m to 2724 m with surveys. Attempted to get MWD to work. Signal strength fluctuating. Tripped out for washed pipe. (Washed out found at 15 stands out in ioint of "G" drillpipe, 0.5 m above pin, approximately 40 mm wide x 3 mm high. MWD tool determined to be funtioninq properly.Tripped in, hit crown after attempting to latch stand of drilipipe, crown saver either not set or not functioning. Picked up kelly and circulated - assessed damage, secured timbers. Tripped in. Cleaned to bottom -2.0 m. Drilled from 2724 m to 2727 m (slide).

Start 22 000 kPa Crown 7.25 hours Close Hydril 18 sec 11 200 kPa Total 9.75 hours

Precharge pressure was low - brought up from 5 500 kPa to 7 000 kPa

ESTIMATED COSTS: DAILY $ 31 548 CUMULATIVE $ 4 652 741 SUPERVISOR D. Gaboury/R. Genest

Page No. 127

Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

1200 kg/m' Visc. 70 s/L W.L. 6.0 cm3 pH 9.0 PV 33 mPa.s YP 27 Pa Gels 17/20 Pa

Methyl Blue 40 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L

kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

kg/m' Rate 1../min Desander Overflow Wt. kg/m' Rate Umin

1550 kg/m' Centrifuge Overflow Wt. 1190 kg/m'

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

2773 m Progress 46 m Hole Size 215.9 mm Status Drilling

6RPM-26 3RPM-23

DRILLING MUD ADDITIVES USED: 20 sxs Gel 4 sxs Xanvis

1 sx Caustic

5 to 18 units from 2727 m to 2739 m 215 to 320 units from 2739 to 2747 m 30 to 100 units from 2747 m to 2772 m

Gas Show: 2739 m to 2740 m = 641 units Connection Gas: 100 to 210 units

'337.9

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD '337.0 Drill Actual 21.00 '335.5 Reaming '334.5 Coring '332.5 Cond. Hole '330.5 Trips '329.6 Lubr. Rig 0.75

Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 2.25 120 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

281 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

BITS SURVEYS No. 6 2713 m 14.1 Size - mm 215.9 2723 m 15.4 Type F2PPR 2732 m 16.8 S.N. LF3195 2742 m 17.5 Jets - mm 1x14.1/2x11.1 2752 m 18.2 Wt. - daN 15 000 2761.7 m 18.4 r/min Slide/60 2767 m 18.3 Out - m In PUMP In - m 2713 Liner Length Metres 60 No. mm mm Hours 26.75 1 140 235 Condition Run 2 140 235

PP kPa

13 000

HYDRAULIC

Output AV

Umin m/min

1300 90/49

Checked motor kills, okay. Circulated through lower kill line at rig service.

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas:

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotary drilled from 2727 m to 2730 m. Surveyed and serviced rig. Rotary drilled from 2730 m to 2740 m. Surveyed. Drilled from 2740 m to 2743 m (slide). Rotary drilled from 2743 m to 2749 m. Serviced rig and function tested BOPs. Surveyed. Drilled from 2749 m to 2752.5 m (slide). Rotary drilled from 2752.5 m to 2759 m. Surveyed. Drilled from 2759 m to 2763 m (slide). Serviced rig and function tested Hydril - closing time 18 seconds. Rotary drilled from 2763 m to 2769 m. Surveyed. Drilled from 2769 m to 2773 m (slide). Held safety meetings. Function tested BOP and serviced rig. Ran BOP drills.

Drill String Weight: 78 000 daN RSPP 1: 6 000 kPa at 54 SPM Hole Drag Up: 14 to 16 000 daN Hole Drag Down: 4 to 6 000 daN

ESTIMATED COSTS: DAILY $ 35 258 CUMULATIVE $ 4 687 999 SUPERVISOR D. Gaboury/R. Genest

Page No. 128

J

Depth Mud: Wt

Weather Snowing/Raining Temp -6 Well

'C Road Fair Date 97 03 15 Day No. 109 GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -19 °C Road Fair Date 97 03 16

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 110

Depth 2807 m Progress 34 m Hole Size 215.9 mm Status Reamed (wiper trip) Mud: Wt 1200 kg/m' Visc. 72 s/L W.L. 6.0 cm3 pH 9.0 PV 40 mPa.s YP 25.5 Pa Gels 18/22 Pa

Methyl Blue 47 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

6 RPM - 25 3 RPM - 21

BITS

SURVEYS

No. 6 2761 m 18.4 Size - mm 215.9 2771 m 17.8 Type F2PPR BHA 179.33 m 2780 m 17.1 S.N. LF3195 211 its E DP 2002.01 m m Jets - mm 1x14.1/2x11.1 51 its G DP 490.37 m m Wt. - daN 12 000 12 its S135 DP 123.12 m m r/min Slide/60 Kelly 12.65 m m Out - m In Total 2807.48 m PUMP In - m Liner Length Metres 94 No. mm mm Hours 41.75 1 140 235 Condition Run 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 17 sxs Gel PP Output AV 3 sxs Xanvis kPa Umin m/min 3 sxs Caustic 13 000 1300 90/49

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

°330.5

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °329.0 Drill Actual 15.00 °328.4 Reaming

Coring Cond. Hole 0.50 Trips 6.00 Lubr. Rig 0.50 Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 1.50 120 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

281 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Slide from 2773 m to 2777 m. Rotated from 2777 m to 2778 m. Serviced rig and function tested BOP. Surveyed. Slide from 2778 m to 2784 m. Rotated from 2784 m to 2788 m. Surveyed. Slide from 2788 m to 2790 m. Rotated from 2790 m to 2797 m. Serviced rig and function tested BOP. Surveyed. Slide from 2797 m to 2800 m. Rotated from 2800 m to 2807 m. Wiper trip (17 stands). Pumped out 4 singles off bottom, circulated out 2540 m to 2500 m. Circulated. Tripped in and picked up kelly. Reamed tight hole from 2550 m to 2590 m. New metric gauges installed on accumulator system. Cassady Engineering from Nisku, Alberta inspected the derrick - okay.

Hole Drag Up: 16 to 20 000 daN Hole Drag Down: 6 to 10 000 daN RSPP 1: 1 to 6 000 kPa at 55 SPM Hook Load: 90 000 daN

ESTIMATED COSTS: DAILY $ 34 074 CUMULATIVE $ 4 722 073 SUPERVISOR D. Gaboury/R. Genest

Page No. 129

J

No. 6 Size - mm 215.9 Type F2PPR S.N. LF3195 Jets - mm. 1x14.1/2x11.1 Wt. - daN 16 000 r/min Slide/60 Out - m In In - m 2713 Metres 147 Hours 61.25 Condition Run

BITS

DRILLING MUD ADDITIVES USED:

HYDRAULIC 73 sxs Gel 10 sxs Beads

PP Output AV Power

4 sxs Xanvis

kPa Umin m/min kW 2 sxs Caustic

1300 90/49

SURVEYS 2790 m 17.2 °327.2 2799 m 17.6 '326.3 2809 m 18.2 '325.4 2818 m 18.1 '324.5 2828 m 17.8 '323.7 2837 m 17.3 '321.7 2847 m 17.1 °320.7

PUMP

Liner Length No. mm mm SPM

1 140 235 2 140 235 120

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -20 'C Road Good

Date 97 03 17

Well GENOIL et al ST. LEONARD NO. 1

Rig

Ralex, 1

Day No. 111

Depth 2860 m Progress 53 m Hole Size 215.9

mm Status

Drilling 72 s/L W.L. 6.0

0.12 % Filter Cake kg/m3 Rate

kg/m3 Rate kg/m3

Mud: Wt 1200 kg/m3 Visc. Methyl Blue 46 Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

cm3 pH 9.0 PV 41 mPa.s YP 22.5 Pa Gels 17/20 Pa

2 mm Salt 400 mg/L Cal. 60 mg/L Umin Desander Underflow Wt. kg/m3 Rate Umin Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. kg/m3

6RPM-21 3RPM-17

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 19.50 3 Reaming 4 Coring 5 Cond. Hole 6 Trips 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L. 10 Dev. Survey 1.50 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up 15 Test BOP 16 DST 17 Plug Back

30 sxs Barite

14 000 1300 90/49

303 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional Background Gas: 0 units

21 Handle Tool Connection Gas: 0 units

22 Clean to Btm 2.25 Wiper trip: 2807 m - 880 units

23

Premix and shear - 1 sxs Xanvis, 10 sxs beads, 45 sxs gel, 30 sxs barite (transferred to active system

24 over 1 circulation)

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Cleaned to bottom (fine to medium cuttings, no caving). Surveyed. Slide from 2807 m to 2809 m. Rotary drilled from 2809 m to 2816 m. Serviced riq (function tested Hydril and checked motor kill). Surveyed. Slide from 2816 m to 2821 m. Rotary drilled from 2821 m to 2825 m. Serviced rig and function tested upper and lower. Surveyed. Slide from 2825 m to 2831 m. Rotary drilled from 2831 m to 2835 m. Surveyed. Slide from 2835 m to 2840 m. Rotary drilled from 2840 m to 2844 m. Surveyed. Serviced riq and function tested BOPs. Slide from 2844 m to 2848 m, Rotary drilled from 2848 m to 2854 m. Surveyed. Slide from 2854 m to 2857 m. Rotary drilled from 2857 m to 2860 m. Plan to dummy trip and reposition Grade "G" drillpipe near 2870 m.

Hole Drag up: 15 - 22 000 daN Hole Drag Down: 7 - 14 000 daN RSPP 2: 6 100 kPa at 55 SPM

ESTIMATED COSTS: DAILY $

36 945 CUMULATIVE $ 4 759 018 SUPERVISOR D. Gaboury/R. Genest

Page No. 130

SURVEYS 2847 m 17.1 2856 m 17.1

m m m m m

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

No. 6 Size - mm 215.9 Type F2PPM S.N. LF3195 Jets - mm 1x14.1/2x11.1 Wt. - daN 15 000 r/min Slide/50 Out - m In In - m 2713 Metres 160 Hours 66.50 Condition Run

BITS

BHA "E" Premium

115 joints "E" New

60 joints Grade "G"

108 joints

Cli BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -13

°C Road Good

Date 97 03 18 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Day No. 112

Depth 2873 m Progress 13 m Hole Size 215.9 mm Status Tripping in hole Mud: Wt 1200 kg/rn' Visc. 78 s/L W.L. 6.0 cm3 pH 9.0 PV 40 mPa.s YP 22.5 Pa Gels 17/21 Pa Methyl Blue 46 Solids 0.11 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m' 6RPM-21 3RPM-17

TIME DISTRIBUTION Code/Operation Hours °320.7 1 RU & RD °321.2 2 Drill Actual 5.25

3 Reaming ° 4 Coring ° 5 Cond. Hole 1.25

6 Trips 16.75 7 Lubr. Rig 0.25 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 0.50 11 Wireline Log

120 12 Run Csg/Cmt

DRILLING MUD ADDITIVES USED: 15 sxs Gel 10 sxs Copolymer Beads

1 sx Xanvis (Lubraglide) 2 sxs Caustic

35 sxs Barite

13 Wait on Cmt

HYDRAULIC

14 Nipple Up PP

Output

AV

Power

15 Test BOP kPa

Umin m/min

kW

16 DST 1300

90/49

17 Plug Back 1 400 1300 90/49

303 18 Squeeze Cmt

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 2860 m to 2873 m - 5 units Connection Gas: 2807 m to 2860 m - 5 units Trip Gas: 2873 m - 1263 units

19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm

23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotary drilled from 2860 m to 2864 m. Surveyed. Slide from 2864 m to 2867 m. Rotated from 2867 m to 2873 m. Surveyed. Circulated (condition hole). Tripped out (pumped out 16 singles). Racked back Grade "G" drillpipe. Laid down 31 singles Grade "G" + 19 joints "S" drillpipe. Ran in Grade "E" drillpipe from derrick. Ran in 51 straight singles while laying down bent singles from Grade "E" pipe racked in derrick. Tripped in hole. Picked up kelly and reamed tight spots from 2470 m to 2510 m and 2626 m to 2653 m. Cleaned to bottom 3 singles. Checked crown saver, okay. Function tested Hydril.

Hole Drag Up - 14 - 22 000 daN Hole Drag Down - 7 - 10 000 daN RSPP 2: 6100 kPa at 55 SPM

ESTIMATED COSTS: DAILY $

35 586 CUMULATIVE $ 4 794 604 SUPERVISOR D. Gaboury/R. Genest

Page No. 131

BITS SURVEYS No. 6 Size - mm 215.9 Type F2PPM S.N. LF3195 Jets - mm 1x14.1/2x11.1 Wt. - daN 15 000 r/min Slide/60 Out - m In In - m 2713 Metres 209 Hours 83.50 Condition Run

2867 m 17.3 2877 m 16.8 2886 m 16.4 2895 m 16.6 2906 m 17.2

m m

PUMP

Liner

Length No. mm mm

1 140

235 2 140

235

DRILLING MUD ADDITIVES USED: 10 sxs Gel PP 4 sxs Xanvis kPa 2 sxs Caustic

HYDRAULIC Output AV Umin m/min 1300 90/49

30 sxs Beads 14 000 1300 90/49

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 100 units at 2886 m Connection Gas: 88 units at 2922 m Gas Show: 1810 units at 2879 m to 2880 m

2286 units at 2880.5 m

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -18 °C Road Good

Date 97 03 19

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Depth 2922 m Progress 49 m Hole Size 215.9 mm Status Wiper trip

Day No. 113

Mud: Wt 1200 kg/rn3 Visc. 70 s/L W.L. 6.0 cm3 pH 9.0 PV 40 mPa.s YP 22.5 Pa Gels 17/20 Pa Methyl Blue 40 Solids 0.12 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6 RPM - 20 3 RPM - 17

°321.2

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

RU & RD °321.5 Drill Actual 17.00 °321.8 Reaming °321.9 Coring °321.4 Cond. Hole 1.50

Trips 3.75 ° Lubr. Rig 0.75

Repair Rig Cut Off D.L.

SPM 10 Dev. Survey 1.00 11 Wireline Log

120 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 303 18 Squeeze Cmt

19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Cleaned to bottom (2 ni fill). Rotary drilled from 2873 m to 2874 m. Circulated (worked pipe - cleaned hole). Slide from 2874 m to 2877 m. Rotated from 2877 m to 2884 m. Serviced rig and function tested upper and lower pipe rams. Surveyed. Slide from 2884 m to 2888 m. Rotated 2888 m to 2894 m. Surveyed. Slide from 2894 m to 2896 m. Rotated 2896 m to 2903 m. Serviced rig and function tested Hydril. Surveyed. Rotated 2903 m to 2912 m. Surveyed. Slide from 2912 m to 2915 m. Rotated from 2915 m to 2922 m. Worked pipe and circulated hole. Serviced rig and function tested upper pipe. Wiper trip - pumped out first 17 singles, maximum drag 36 000 daN. Pulled 4 stands. Maximum drag 15 000 daN. Operation at 06:00 - start to run in.

RSPP 2: 6300 kPa at 62 SPM Hook Load: 89 000 daN Hole Drag Up: 36 000 daN Hole Drag Down: 8 - 10 000 daN

Shear mud in premix at 1300 kPa using pump 1. Checked Crown saver, okay.

ESTIMATED COSTS: DAILY $ 44 511 CUMULATIVE $ 4 839 115 SUPERVISOR D. Gaboury/R. Genest

Page No. 132

0. BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Clear

Temp -8 'C Road

Good Date 97 03 20 Well

GENOIL et al ST. LEONARD NO. 1

Rig

Ralex, 1 Day No. 114 Depth

2979 m Progress 57 m Hole Size 215.9 mm Status

Circulating - working hole before wiper trip Mud: Wt 1215 kg/m' Visc. 97 s/L W.L. 6.0 cm' pH 9.0 PV 47 Methyl Blue 47 Solids 0.13 % Filter Cake 2 mm Salt Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. 6 RPM - 20 3 RPM - 17

TIME DISTRIBUTION

DRILLING MUD ADDITIVES USED: 50 sxs Gel PP

kPa

55 sxs Beads 14 500

Output L./min 1300

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 2979 m - 1 to 6 units

Gas Show: None 23 Wiper Trip: 2922 m - 95 units 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped in and surveyed. Slide from 2922 m to 2925 m. Rotated from 2925 m to 2931 m. Serviced rig. Checked motor kill and function tested pipe rams. Surveyed. Slide and rotated from 2931 m to 2940 m KB. Surveyed. Slide from 2940 m to 2942 m. Rotated from 2942 m to 2950 m. Serviced rig and function tested Hydril. Surveyed. Rotated from 2950 m to 2960 m. Surveyed. Slide from 2960 m to 2963 m. Rotated from 2963 m to 2969 m. Serviced rig and function tested top ram. Surveyed. Slide from 2969 m to 2972 m KB. Rotated from 2972 m to 2979 m. Circulated and worked hole before wiper trip. One spot 30 000 daN over on first single, tight hole at 2700 m to 2690 m.

om 2925 m to 2931 m. Serviced rig. Checked motor kill and function tested pipe rams. Surveyed. Slide and rotated from 2931 m to 2940 m KB. Surveyed. Slide from 2940 m to 2942 m. Rotated from 2942 m to 2950 m. Serviced rig and function tested Hydril. Surveyed. Rotated from 2950 m to 2960 m. Surveyed. Slide from 2960 m to 2963 m. Rotated from 2963 m to 2969 m. Serviced rig and function tested top ram. Surveyed. Slide from 2969 m to 2972 m KB. Rotated from 2972 m to 2979 m. Circulated and worked hole before wiper trip. One spot 30 000 daN over on first single, tight hole at 2700 m to 2690 m.

Hook Load: 91 000 daN Hook Load: 91 000 daN Average Drag: 25 000 daN Average Drag: 25 000 daN Hole Drag Down: 7 - 10 000 daN Hole Drag Down: 7 - 10 000 daN

RSPP 2: 6750 kPa at 60 SPM RSPP 2: 6750 kPa at 60 SPM

ESTIMATED COSTS: DAILY $ ESTIMATED COSTS: DAILY $ 58 429 CUMULATIVE $ 4 897 544 SUPERVISOR D. Gaboury/R. Genest 58 429 CUMULATIVE $ 4 897 544 SUPERVISOR D. Gaboury/R. Genest

Page No. 133 Page No. 133

mPa.s YP 27.5 Pa Gels 17/21 Pa 400 mg/L Cal. 80 mg/L kg/m' Rate Umin

kg/m' Rate L./min kg/m'

J J

4 BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

1

Weather Clear Temp -12 °C Road Good Date 97 03 21 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 115 Depth 3008 m Progress 29 m Hole Size 215.9 mm Status Drilling Mud: Wt 1210 kg/m3 Viso. 105 s/L W.L. 6.0 cm' pH 9.0 PV 46 mPa.s YP 27 Pa Gels 17/22 Pa Methyl Blue 47 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

6 RPM - 20 3 RPM - 17

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 6 2962 m 18.5 °324.0 1 RU & RD

Size - mm 215.9 2971 m 18.2 °324.9 2 Drill Actual 12.50 Type F2PPM 2981 m 17.9 °325.7 3 Reaming

S.N. LE3195 2991 m 17.8 0326.2 4 Coring

Jets - mm 1x14.1/2x11.1 m 5 Cond. Hole 0.50 Wt. - daN 15 000 m 6 Trips 5.25 r/min Slide/60 m 7 Lubr. Rig Out - m In PUMP 8 Repair Rig 0.75 In - m 2713 Liner Length 9 Cut Off D.L. 1.00 Metres 295 No. mm mm SPM 10 Dev. Survey 1.00 Hours 115.75 1 140 235 11 Wireline Log Condition Run 2 140 235 120 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

27 sxs Gel PP Output AV Power 15 Test BOP 3 sxs Xanvis kPa Umin m/min kW 16 DST

1 sx Caustic 1300 90/49 17 Plug Back 44 sxs Beads (24-fine, 20-coarse) 14 500 1300 90/49 314 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Background Gas: 2979 m to 3008 m - 99 units 21 Handle Tool Connection Gas: 2979 m to 3008 m - 99 units 22 Clean to Btm 1.50 Trip Gas: 2979 m - 95 units 23 Change Brake 1.50 Gas Show: None 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated work pipe. Pumped out 13 singles (4 with no pump). Wiper trip to casing (tight hole at 2700 m, pulled 35 000 daN over with pump on). Serviced rig. Changed drawworks brake pads. Slipped and cut drilling line. Tripped in (worked tight spot at 2700 m). Picked up kelly and cleaned from 2966 m. Surveyed. Slide from 2979 m to 2982 m, rotated from 2982 m to 2988 m. Serviced rig and function tested Hydril. Surveyed. Slide from 2988 m to 2990 m. Rotated from 2990 m to 2998 m. Serviced rig and function tested pipe rams. Surveyed. Slide from 2998 m to 2999 m. Rotated from 2999 m to 3008 m. Surveyed.

Hook Load: 91 000 daN Up Drag: 15 to 25 000 daN Down Drag: 7 - 12 000 daN RSPP 2: 6600 at 62 SPM

ESTIMATED COSTS: DAILY $ 40 268 CUMULATIVE $ 4 937 812 SUPERVISOR D. Gaboury/R. Genest

Page No. 134

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 'C Road Good

Date 97 03 22

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Depth 3009 m Progress 1 m Hole Size 215.9 mm Status Drilling

Day No. 116

Mud: Wt 1190 kg/rn3 Visc. 140 s/L W.L. 6.0 cm' pH 9.0 PV 55 mPa.s YP 30 Pa Gels 18/24 Pa Methyl Blue 48 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM - 20 3 RPM - 18

BITS SURVEYS No. 6 7 m

Size - mm 215.9 215.9 m Type F2PPM F2RP m S.N. LE3195 LG4774 m Jets - mm 1x14.1/2x11.1 1x14.1/2x11.1 m Wt. - daN 15 000 15 000 m r/min Slide/60 Slide/60 m Out - m 3009 In PUMP In - m 2713 3009 Liner Length Metres 296 - No. mm mm Hours 117.50 1 140 235 Condition 7-8-UI Run 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 15 sxs Gel PP Output AV

1 sx Xanvis kPa Umin m/min 2 sxs Caustic 1300 90/49

14 000 1300 90/49

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 3009 m - 3 to 5 units Connection Gas: n/a Trip Gas: 3009 m - 257 units Gas Show; nil

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 1.75 3 Reaming 3.50 4 Coring 5 Cond. Hole 1.25 6 Trips 10.50 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L. 1.00

SPM 10 Dev. Survey 11 Wireline Log

120 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 303 18 Squeeze Cmt

19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Inspect DC 3.75 24 Change Motor 1.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotated from 3008 m to 3008.5 m. Circulated bottoms up. Rotated from 3008.5 m to 3009 m. Tripped out - pumped out 12 singles and laid down 4 singles. Serviced rig and function tested Hydril. Inspected HWDP and drill collars. Changed out mud motor. Slipped and cut drill line. Tripped in hole and reamed bridge from 2600 m to 2660 m (took 6 to 8 000 daN). Reamed to bottom - 3 singles (1000 daN). Serviced rig. Checked BOP accumulator and motor kills, okay.

Accumulator check: Start

22 000 kPa Hook Load: 91 000 daN Close Hydril 15 000 kPa 24 seconds Drag Up: 15 to 25 000 daN Close Pipe 13 000 kPa 9 seconds Drag Down: 6 to 8 000 daN Open HCR 12 500 kPa 6 seconds Motor Kills Okay Precharge At 7 000 kPa Pump Up 4 minutes 10 seconds Nitrogen Bottle 10 500 kPa Minimum RSPP 2: 6 000 kPa at 52 SPM

ESTIMATED COSTS: DAILY $ 56 272 CUMULATIVE $ 4 994 084 SUPERVISOR D. Gaboury/R. Genest

Page No. 135

47 Solids 0.13 % Filter Cake 2 mm Salt Methyl Blue

Date 97 03 23 Day No. 117

CrISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -13 °C Road Good Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Mud: Wt 1200 kg/rn3 Visc. 120 s/L W.L. 6.0 cm' pH 10.0 PV

6RPM-20 3RPM-18

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 7 3000 m 17.9 °325.8 1 RU & RD Size - mm 215.9 3009 m 18.4 °325.6 2 Drill Actual 15.50 Type F2RP m 3 Reaming S.N. LG4774 m 4 Coring Jets - mm 1x14.3/2x11.1 m 5 Cond. Hole 0.50 Wt. - daN 12 - 16 000 m 6 Trips 0.50 r/min 60/Slide m 7 Lubr. Rig 5.50 Out - m In PUMP 8 Repair Rig In - m 3009 Liner Length 9 Cut Off D.L. Metres 23 No. mm mm SPM 10 Dev. Survey 0.50 Hours 14.75 1 140 235 130 11 Wireline Log Condition Run 2 140 235 12 Run Csg/Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 1 sx Xanvis PP Output AV Power

kW

13 Wait on Cmt 14 Nipple Up 15 Test BOP

20 sxs Beads kPa Umin m/min 16 DST 14 000 1400 90/52 326 17 Plug Back

1400 90/49 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Background Gas: 3009 m to 3032 m - 4 to 10 units 21 Handle Tool Connection Gas: 3009 m to 3032 m - 7 to 13 units 22 Clean to Btm 1.50 Trip Gas: 3032 m - 52 units 23 Gas Show: Nil 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Slide from 3009 m to 3010 m. Rotated from 3010 m to 3017 m. Surveyed. Slide from 3017 m to 3018.5 m. Rotated from 3018.5 m to 3021 m. Circulated work pipe. Slide from 3021 m to 3021.5 m. Rotated from 3021.5 m to 3026 m. Serviced rig and function tested BOP. Surveyed. Slide from 3026 m to 3028 m. Rotated from 3028 to 3032 m. Wiper trip and pumped out 13 singles. Maximum 32 000 daN over pulled and laid down 3 singles. 15 to 20 000 daN over, pulled 12 stands - 20 to 25 000 daN over. Ran in - no tight spots. Reamed to bottom from 3017 m to 3032 m. Took 10 to 12 000 daN. Tried to slide (no pump differential, no back torque). Serviced rig and checked crown stop, function tested both pipe rams. Tripped out for motor. Pumped out 2 singles from 28 to 30 000 daN.

Hook Load; 91 000 daN Drag Up: 25 to 32 000 daN Drag Down: 10 to 12 000 daN RSPP 1: 5 500 kPa at 64 SPM

ESTIMATED COSTS: DAILY $ 32 256 CUMULATIVE $ 5 026 340 SUPERVISOR D. Gaboury/R. Genest

Page No. 136

Depth 3032 m Progress 215.9 mm Status Tripping for mud motor 23 m Hole Size 44 mPa.s YP 26.5 Pa Gels 18/24 Pa

400 mg/L Cal. 60 mg/L kg/m' Rate Umin kg/m' Rate Umin

kg/m'

Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt.

kg/m' Centrifuge Overflow Wt.

J

ESTIMATED COSTS: DAILY $ 47 943 CUMULATIVE $ 5 074 283 SUPERVISOR D. Gaboury/R. Genest

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -16 °C Road Good Date 97 03 24 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 118 Depth 3055 m Progress 23 m Hole Size 215.9 mm Status Drilling Mud: Wt 1210 kg/rn3 Visc. 100 s/L W.L. 6.0 cm3 pH 9.0 PV 43 mPa.s YP 23 Pa Gels 18/24 Pa Methyl Blue 47 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6 RPM -18 3RPM-15

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 7 8 3019 m 18.9 °325.9 1 RU & RD Size - mm 215.9 215.9 3029 m 19.0 °325.9 2 Drill Actual 9.75 Type F2RP F3PP 3039 m 18.5 °326.0 3 Reaming S.N. LG4774 LF7928 m 4 Coring Jets - mm 1x14.3/2x11.1 1x14.3/2x11.1 m 5 Cond. Hole Wt. - daN 15 000 15 000 m 6 Trips 9.00 r/min 60/Slide 60/Slide m 7 Lubr. Rig 0.75 Out - m 3032 In PUMP 8 Repair Rig In - m 3009 3032 Liner Length 9 Cut Off D.L. Metres 23 23 No. mm mm SPM 10 Dev. Survey 0.75 Hours 15.50 9.75 1 140 235 120 11 Wireline Log Condition 3-2-I Run 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

1 sx Xanvis PP Output AV Power 15 Test BOP 20 sxs Beads kPa Umin m/min kW 16 DST

2 sxs Caustic 14 500 1300 90/49 314 17 Plug Back 86 sxs Barite 1300 90/49 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Background Gas: 3032 m - 22 units 21 Handle Tool 2.50 Connection Gas: 3032 m - 11 units 22 Clean to Btm 1.25 Trip Gas: 3032 m - 175 units 23 Gas Show: Nil 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped out for failed mud motor. Changed out motor and MWD (intermittent failures). Tripped in drill collars and checked motor. Serviced rig and function tested rams. Tripped in. Service rig and checked motor kills. Reamed and cleaned to bottom from 3018 m to 3032 m. Slide from 3032 m to 3036 m. Surveyed. Rotated from 3036 m to 3043 m. Slide from 3043 m to 3046 m. Serviced rig and checked brake linkage. Surveyed. Rotated from 3046 m to 3053 m. Slide from 3053 m to 3055 m. Average ROP: 2.36 m/h.

Hook Load: 91 000 daN Up Drag: 12 to 251000 daN Down Drag: 8 to 12 000 daN RSPP 1: 6 000 kPa at 58 SPM

Page No. 137

J

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -14 °C Road

Good

Date 97 03 25 Well GENOIL et al ST. LEONARD NO. 1 Rig

Ralex, 1

Day No. 119 Depth 3102 m Progress 47 m Hole Size 215.9 mm Status Wiper trip Mud: Wt 1210 kg/rn3 Visc. 82 s/L W.L. 6.0 cm3 pH 9.0 PV 40 Methyl Blue 45 Solids 0.13 % Filter Cake 2 mm Salt Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. 6RPM-16 3RPM-13

mPa.s YP 22 Pa Gels 17/22 Pa 400 mg/L Cal. 60 mg/L kg/m' Rate Umin kg/m3 Rate Umin kg/m3

No. 8 Size - mm 215.9 Type F3PP S.N. LF7928 Jets - mm Wt. - daN 15 000 r/min 60/Slide Out - m In In - m 3032 Metres 70 Hours 30.50 Condition Inc

1x14.3/2X11.1

BITS SURVEYS 3029 m 19.00 3038 m 18.50 3048 m 17.80 3057 m 17.70 3066 m 17.90 3076 m 18.30 3085 m 18.70

TIME DISTRIBUTION Code/Operation Hours

'325.9 1 RU & RD '326.0 2 Drill Actual 19.75 '325.3 3 Reaming '324.6 4 Coring °323.6 5 Cond. Hole 0.50 '322.2 6 Trips 1.75 °322.8 7 Lubr. Rig 0.50

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 1.50 120 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

314 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

DRILLING MUD ADDITIVES USED:

HYDRAULIC

4 sx Xanvis

PP

Output AV

2 sxs Caustic

kPa

Umin m/min 14 500

1300 90/49

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB Circulated and worked pipe. Drilled from 3055 m to 3065 m. Serviced rig and function tested BO 3074 m. Surveyed. Drilled from 3074 m to 3083 m. Surveyed. Serviced rig. Checked motor kills, Circulated and worked pipe. Pumped out 6 singles to 3046 m. Pulled out of hole. Maximum pull trip to 2600 m, ran in hole. Rotated from 3055 m to 3074 m. Slide from 3074 m to 3077 m. Slide 3085 m to 3102 m.

Pick Up Weight: 12 to 25 000 daN over string weight Slack Off Weight: 8 to 10 000 daN under string weight String Weight: 92 000 daN RRSP 1: 6200 kPa at 60 SPM

ESTIMATED COSTS: DAILY $

36 955 CUMULATIVE $ 5 063 295 SUPERVISOR M. Kramps/D. Gaboury

Page No. 138

J

to CF, description of drill string, etc.) Ps. Surveyed. Drilled from 3065 m to okay. Drilled from 3083 m to 3102 m.

over string weight 40 000 daN, wiper from 3083 to 3085 m. Rotated from

ESTIMATED COSTS: DAILY $ 44 249 CUMULATIVE $ 5 107 544 SUPERVISOR M. Kramps/D. Gaboury

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather CLoudy Temp 4 °C Road Good Date 97 03 26 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 120 Depth 3125 m Progress 23 m Hole Size 215.9 mm Status Tripping Mud: Wt 1195 kg/m3 Visc. 120 s/L W.L. 6.0 cm' pH 9.0 PV 50 mPa.s YP 22.5 Pa Gels 17/24 Pa Methyl Blue 49 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m3 Rate L/min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

6RPM-18 3RPM-15

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 8 3075 m 18.30 '322.0 1 RU & RD

Size - mm 215.9 3085 m 18.70 °322.0 2 Drill Actual 15.50 Type F3PP 3094 m 19.70 °323.5 3 Reaming 0.50 S.N. LF7928 3104 m 20.60 0324.7 4 Coring Jets - mm 1x14.3/2x11.1 m ° 5 Cond. Hole 0.50 Wt. - daN 15 000 m 6 Trips 6.25 r/min 60/Slide m ° 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 3032 Liner Length 9 Cut Off D.L.

Metres 93 No. mm mm SPM 10 Dev. Survey 0.75 Hours 46.00 1 140 235 120 11 Wireline Log Condition Inc 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

3 sx Xanvis PP Output AV Power 15 Test BOP 2 sxs Caustic kPa L/min m/min kW 16 DST

50 sxs Gel 14 500 1300 90/49 314 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Background Gas: 4 to 16 units 21 Handle Tool Connection Gas: 4 to 37 units 22 Clean to Btm Gas Show at 3117.5 m - 442 units 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Wiper trip to 2600 m. Tight spots at 2842 m, 2747 m and 2600 m. Serviced rig. Checked brakes, function tested BOPs and checked crown stopper. Ran in hole to 3085 m. Washed and reamed from 3085 m to 3102 m. Serviced rig and surveyed at 3085 m. Drilled and surveyed to 3125 m. Motor stalling out. Circulated and pulled out of hole. Pumped out six singles - pulled to 2690 m - stuck in hole. Broke out one single, established circulation. Worked pipe free, continued to trip out. Slide from 3102 m to 3105 m, 3111 m and 3114 m and 3121 m to 3125 m. Serviced rig. Held BOPs drill and checked motor shut offs.

Pick Up Weight: 12 to 25 000 daN over string weight Slack Off Weight: 8 to 10 000 daN under string weight String Weight: 92 000 daN

RSPP 1: 6250 kPa at 60 SPM

Page No. 139

ESTIMATED COSTS: DAILY $ 41 819 CUMULATIVE $ 5 148 563 SUPERVISOR M. Kramps/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -6 'C Road Good Date 97 03 27 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 121 Depth 3125 m Progress 0 m Hole Size 215.9 mm Status Working junk sub Mud: Wt 1200 kg/m' Visc. 106 s/L W.L. 6.0 cm' pH 9.0 PV 44 mPa.s YP 19 Pa Gels 17/22 Pa Methyl Blue 46 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m' 6RPM-13 3 RPM -10

ti BITS SURVEYS

TIME DISTRIBUTION Code/Operation Hours

No. 8 9 m 1 RU & RD Size - mm 215.9 215.9 m 2 Drill Actual Type F3PP F5 m 3 Reaming 9.00

S.N. LF7928 LF4637 m 4 Coring Jets - mm 1x14.3/2x11.1 1x14.3/2x11.1 m 5 Cond. Hole 0.25 Wt. - daN 15 000 5 - 7 000 m 6 Trips 10.75 r/min 60/Slide 60 - 120 m 7 Lubr. Rig 0.50 Out - m 3125 PUMP 8 Repair Rig

In - m 3032 3125 Liner Length 9 Cut Off D.L. 1.00 Metres 93 No. mm mm SPM 10 Dev. Survey Hours 46.00 1 140 235 120 11 Wireline Log

Condition 8-8-In Inc 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 1 sx Caustic PP Output AV Power 15 Test BOP

kPa Umin m/min kW 16 DST 14 500 1300 90/49 314 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Damaged tube on one joint Grade "G" drillpipe when stuck at 2650 m. 21 Handle Tool 1.00

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped out. Tight spot at 2568 m - worked tight hole to 2560 m - continued to pull out of hole - racked motor in derrick - slipped and cut - handled tools - serviced rig and functioned tested BOPs. Ran in hole to shoe, serviced rig - checked brakes. Ran in hole to 2583 m. Reamed to 2600 m, ran in hole to 2631 m - reamed to 2731 m - ran in hole to 3035 m. Reamed from 3035 m to 3125 m undergauged hole from 3120 m to 3125 m hard reaming at this point. Worked junk sub and attempted to bypass iron left in hole.

String Weight: 87 000 daN Hole Drag Up: 10 - 30 000 daN with peaks at t 30 000 daN Drag Down: 8 - 10 000 daN

Page No. 140

J

BITS No. 9 10 Size - mm 215.9 215.9 Type F5 HP61A S.N. LF4637 JT6152 Jets - mm 1x14.3/2x11.1 1x14.3/2x11.1 Wt. - daN 5-7000 5-15000 r/min 60 - 120 60/Slide Out - m 3131 In In - m 3125 3131 Metres 6 5 Hours 4.00 3.00 Condition 5-3-2 Inc.

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 °C Road Good

Date 97 03 28

Well GENOIL et al ST. LEONARD NO. 1

Rig

Ralex, 1

Day No. 122 215.9 mm Status Drilling

cm3 pH 9.0 PV 46 mPa.s YP 21 Pa 2 mm Salt 400 mg/L Cal.

L/min Desander Underflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Overflow Wt. kg/m'

Depth 3136 m Progress 11 m Hole Size Mud: Wt 1195 kg/m' Visc. 102 s/L W.L. 7.0 Methyl Blue 47 Solids 0.13 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m' 6RPM-15 3RPM-13

Gels 17/25 Pa 80 mg/L

L/min

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey

125 11 Wireline Log 12 Run Csg/Cmt

TIME DISTRIBUTION SURVEYS

Code/Operation Hours

3113 m 20.2 °325.7 1 RU & RD 3123 m 19.7 °325.1 2 Drill Actual 7.00

m

3 Reaming

m

4 Coring

m

5 Cond. Hole 1.50

m

6 Trips 12.00

m

7 Lubr. Rig 0.75

DRILLING MUD ADDITIVES USED: 2 sxs Caustic

50 sxs Gel 1 sx Xanvis

13 Wait on Cmt

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST

14 500 1300 90/49 314 17 Plug Back 25 sxs Barite

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional Background Gas: 13 - 48 units

21 Handle Tool 2.00

Trip Gas: 3131 m -222 units

22 Clean to Btm 23 Worked 24 Junk Sub 0.75 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Worked iunk sub. Drilled from 3125 m to 3126 m. Serviced rig and function tested BOPs. Drilling from 3126 m to 3131 m. Worked junk sub every metre. Circulated and worked pipe. Pumped out 9 singles. Overpulled to 30 000 daN. Pulled out of the hole and changed the bottomhole assembly. Serviced rig. Checked motor kills. Ran in hole with bottomhole assembly and tested MWD. Ran in the hole to the shoe. Filled pipe. Ran in hole to 3064 m. Reamed and cleaned to bottom. Rotary drilled from 3131 m to 3133 m. Serviced rig. Function tested BOPs and checked motor kills. Drilled - slide from 3133 m to 3136 m. NOTE: Recovered several inserts plus fragments of nose debris in funk sub.

ROP at 06:00: 1.8 m/h String Weight: 94 000 daN Pick Up Weight: 130 000 daN Slack Off: 84 000 daN RRSP 1: 6 250 kPa at 60 SPM Hole Drag Up: 15 to 25 000 daN with peaks to 35 000 daN

ESTIMATED COSTS: DAILY $

38 692 CUMULATIVE $ 5 235 998 SUPERVISOR M. Kramps/D. Gaboury

Page No. 141

SURVEYS 3113 ni 20.2 '325.7 3123 m 19.7 '325.1 3132 m 19.3 °324.8 3142 m 18.5 °324.8 3151 m 17.7 '324.0 3160 m 17.2 °324.0

m ° PUMP

Liner Length No. mm mm SPM

1 140 235 128 2 140 235

HYDRAULIC Output AV

Power Umin m/min

kW 1408 90/49

375

CrISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp

6 'C Road Good

Date 97 03 29 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1

Day No. 123 Depth 3180 m Progress 44 m Hole Size 215.9 mm Status Drilling Mud: Wt 1195 kg/rn3 Visc. 105 s/L W.L. 8.0 cm' pH 9.5 PV 47 mPa.s YP 23 Pa Gels 16/25 Pa Methyl Blue 48 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate L/min Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-15 3RPM-13

BITS No. 10 Size - mm 215.9 Type HP61A S.N. JT6152 Jets - mm 1x14.3/2x11.1 Wt. - daN 5 - 15 000 r/min 60/Slide Out - m In In - m 3131 Metres 49 Hours 24.75 Condition

DRILLING MUD ADDITIVES USED: 3 sxs Caustic

15 sxs Gel 2 sxs Xanvis

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 19.50 3 Reaming 4 Coring 5 Cond. Hole 6 Trips 2.75 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L. 10 Dev. Survey 1.00 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up 15 Test BOP 16 DST 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

PP kPa 1600

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 3135 m to 3147 m - 28 to 16 units

3147 m to 3175 m-16 to 8 units Gas Show: 3134.25 m to 3134.5 m - 316 units

3175 m to 3176 m - 1182 units

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled from 3136 m to 3140 ni (rotated). Serviced rig and function tested BOPS. Surveyed. Slide drilled from 3140 ni to 3143 m. Rotated from 3143 m to 3149 m. Surveyed. Slide drilled from 3149 ni to 3153 m. Rotated from 3153 m to 3159 m. Serviced rig and function tested BOPs. Checked brakes and crown stopper, Surveyed. Rotated from 3159 m to 3168 m. Serviced rig and function tested BOPs. Checked brakes. Surveyed. Drilled from 3168 m to 3180 m at 06:00.

ROP: 2 m/h String Weight: 94 000 daN Pick Up Weight: 128 000 daN Slack Off Weight: 80 01)0 daN

RSPP 1: 5000 kPa at 58 SPM

ESTIMATED COSTS: DAILY $

35 386 CUMULATIVE $ 5 271 384 SUPERVISOR

M. Kramps/D. Gaboury

Page No. 142

No. 10 Size - mm 215.9 Type HP61A S.N. JT6152 Jets - mm 1x14.3/2x11.1 Wt. - daN 5 - 15 000 r/min 60/Slide Out - m In In - m 3131 Metres 66 Hours 32.25 Condition

DRILLING MUD ADDITIVES USED: 2 sxs Caustic

10 sxs Gel 1 sx Drispac

40 sxs Barite

SURVEYS 3170 m 17.0 3180 m 17.3

m m m m m

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

HYDRAULIC PP

Output AV kPa

L/min m/min 16 000

1408 90/49

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 3175 m to 3197 m - 330 to 1780 units Gas Show: 3189 m to 3190 m - 1822 units, 3182 m to 3182.5 m - 1585 units

BITS

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp

2 °C Road

Good

Date 97 03 30 Well GENOIL et al ST. LEONARD NO. 1

Rig

Ralex, 1

Day No. 124 Depth 3197 m Progress 17 m Hole Size 215.9 mm Status Reaming Mud: Wt 1195 kg/m' Visc. 100 s/L W.L. 6.5

cm3 pH 9.0 PV 50 mPa.s YP 21 Pa Gels 16/24 Pa

Methyl Blue 48 Solids 0.13 % Filter Cake

2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m'

Centrifuge Overflow Wt. kg/m'

6RPM-15 3RPM-13

°324.7

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD °324.7 Drill Actual 8.25 ° Reaming 12.00 ° Coring

Cond. Hole 0.25 ° Trips 2.50 ° Lubr. Rig 0.25

SPM

Repair Rig Cut Off D.L. Dev. Survey 0.50

128 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

375 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Flow Check 0.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Flow check. Installed rubber for rotating head because of gas influx. Drilled from 3178 m. Rotated to 3187 m. Serviced rig and function tested BOPS. Surveyed. Drilled from 3187 m. Rotated to 3197 m. Circulated - wiper trip to 2500 m. Ran in hole to 2588 m. Reamed from 2588 m to 2720 m. Held safety meetings.

String Weight: 94 000 daN Pick Up Weight: 128 000 daN Slack Off Weight: 80 000 daN RSPP 1: 7200 kPa at 80 SPM

ESTIMATED COSTS: DAILY $

41 013 CUMULATIVE $ 5 312 397 SUPERVISOR M. Kramps/D. Gaboury

Page No. 143

J

BITS

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 10 to 110 units Gas Show: 3197 m - 3345 units

SURVEYS 3189 m 17.7 3199 m 18.3

m m m m m

PUMP Liner Length mm mm 140 235 140 235

HYDRAULIC PP Output AV kPa Umin m/min

16 500 1408 90/49

No. 10 Size - mm 215.9 Type HP61A S.N. JT6152 Jets - mm Wt. - daN r/min 60/Slide Out - m In

1x14.3/2x11.1 5-15000

In - m 3131 Metres 87 Hours 46.75 Condition 8-8-I

No. 1 2

DRILLING MUD ADDITIVES USED: 1 sx Caustic

75 sxs Gel 8 sxs Drispac

478 sxs Barite

CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Snowing

Temp -5 oC Road

Good

Date 97 03 31

Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1

Day No. 125 Depth 3218 m Progress 21 m Hole Size

215.9 mm Status Tripping

Mud: Wt 1190 kg/m3 Visc. Methyl Blue 48 Solids Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. 2250 kg/m'

95 s/L W.L. 6.0 cm' pH 9.0 PV 49 mPa.s YP 16 Pa Gels 16/30 Pa 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L

Umin Desander Underflow Wt. kg/m' Rate

L/min Umin Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Overflow Wt. 11.40 kg/m'

6RPM-16 3RPM-13

0 324.2

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

°323.7 2 Drill Actual 14.50 3 Reaming 2.75 4 Coring 5 Cond. Hole 6 Trips 4.75 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 1.25 128 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

387 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed from 2720 m to 2950 m. Ran in hole to 2177 m. Serviced rig and function tested BOPS. Checked motor kills. Held safety meetings. Reamed from 3177 m to 3197 m. Drilled from 3197 m (slide) to 3199 m. Rotated from 3199 m to 3206 m. Surveyed. Drilled from 3206 m (slide) to 3209 m. Rotated from 3209 m to 3216 m. Serviced rig and function tested BOPs. Surveyed. Drilled from 3216 m (slide) to 3218 m. Slow progress - motor stalling. Pumped out 14 singles. Maximum pull 35 000 daN over string weight. Pulled out of hole. Worked through tight spot at 2720 m. Serviced rig and flow checked. Pulled out of hole.

String Weight: 94 000 daN Pick Up Weight: 128 000 daN Slack Off Weight: 76 000 daN RSPP 1: 7 500 kPa at 60 SPM

ESTIMATED COSTS: DAILY $ 45 629 CUMULATIVE $ 5 358 026 SUPERVISOR M. Kramps/D. Gaboury

Page No. 144

Weather Well GENOIL et al ST. LEONARD NO. 1

Clear

Temp -8 °C Road

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Rig Ralex, 1 Day No. 126 Good

Date 97 04 01

Depth 3231 m Progress 13 m Hole Size 215.9 mm Status Drilling Mud: Wt 1180 kg/m' Visc. 105 s/L W.L. 6.0 cm' pH 9.0 PV 40 mPa.s YP 17 Pa Gels 20/30 Pa Methyl Blue 48 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate I./min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-20 3RPM-18

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 10 11 3203 m 18.6 °323.5 1 RU & RD Size - mm 215.9 215.9 3213 m 18.8 °323.5 2 Drill Actual 6.50 Type HP61A F4 m 3 Reaming 1.00 S.N. JT6152 LJ6534 m 4 Coring Jets - mm 1x14.3/2x11.1 3 x 15.9 m 5 Cond. Hole Wt. - daN 5 - 15 000 5 - 15 000 m 6 Trips 9.00 r/min 60/Slide 60/Slide m 7 Lubr. Rig 0.50 Out - m 3218 In PUMP 8 Repair Rig 5.50 In - m 3131 3218 Liner Length 9 Cut Off D.L. 0.75 Metres 87 13 No. mm mm SPM 10 Dev. Survey 0.75 Hours 46.75 6.50 1 140 235 130 11 Wireline Log Condition 8-8-1 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 sxs Caustic PP Output AV Power 15 Test BOP 72 sxs Barite kPa 1../min m/min kW 16 DST

14 500 1430 104/54 345 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 0 units

20 Directional 21 Handle Tool

Trip Gas: 850 units 22 Clean to Btm Connection Gas: 0 units 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pulled out of hole. Service rig. Changed out motor and bit. Ran in hole with bottomhole assembly. Slipped and cut. Ran in hole to 2120 m. Filled pipe. Ran in hole to 3216 m. Serviced rig. Function tested BOPs. Reamed from 3216 m to 3218 m. Drilled from 3218 m to 3220 m. Surveyed. Slide from 3220 m to 3224 m. Rotated from 3224 m to 3229 m. Broke low chain. Repaired same. Rotated from 3229 m to 3230 m. Repaired low chain. Surveyed. Slide from 3230 m to 3231 m. NOTE: All rig repair time due to broken low drive chain.

ROP: 2 m/h String Weight: 94 000 daN Pick Up Weight: 134 000 daN Slack Off Weight: 74 000 daN

ESTIMATED COSTS: DAILY $ 39 924 CUMULATIVE $ 5 397 950 SUPERVISOR M. Kramps/D. Gaboury

Page No. 145

I

BISSETT RESOURCE CONSULTANTS LTD. Calts

DAILY DRILLING REPORT

Weather Clear Temp -4 0C Road Good Date 97 04 02 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 127 Depth 3273 m Progress 42 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/m' Visc. 110 s/L W.L. 6.0 cm' pH 9.0 PV 40 mPa.s YP 17.5 Pa Gels 17/28 Pa Methyl Blue 48 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-19 3RPM-17

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 11 Size - mm 215.9 Type F461A S.N. LJ6534 Jets - mm 3x15.9 Wt. - daN 5 - 15 000

3222 m 18.2 '323.8 3232 m 18.0 '323.9 3241 m 17.9 '324.3 3250 m 17.8 '326.1

m m

1 RU & RD 2 Drill Actual 21.75 3 Reaming 4 Coring 5 Cond. Hole 6 Trips

r/min 60/Slide m 7 Lubr. Rig 0.75 Out - m In PUMP 8 Repair Rig In - m 3218 Liner Length 9 Cut Off D.L. Metres 55 No. mm mm SPM 10 Dev. Survey 1.50 Hours 28.25 1 140 235 11 Wireline Log Condition Run 2 140 235 128 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

3 sxs Caustic PP Output AV Power 15 Test BOP 235 sxs Barite kPa Umin m/min kW 16 DST

6 sxs Drispac 15 000 1408 90/49 352 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Background Gas: 45 units 21 Handle Tool

Trip Gas: - 22 Clean to Btm Connection Gas: 145 units 23 Gas Show: 246 units at 3248 m KB 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Slide from 3231 m to 3233 m KB. Serviced rig and function tested BOPs. Slide from 3233 m to 3234 m KB. Rotated from 3234 m to 3439 m KB. Worked pipe and surveyed. Slide from 3239 m to 3244 m KB, rotated from 3249 m to 3449 m KB. Worked pipe and surveyed. Slide from 3239 m to 3254 m KB, rotated from 3254 m to 3258 m KB. Serviced rig and function tested top rams. Surveyed. Slide from 3258 m to 3265 m KB, rotated from 3265 m to 3267 m KB. Serviced rig and function tested Hydril. Surveyed. Slide from 3267 m to 3272 m KB. Rotated from 3272 to 3273 m KB.

String Weight: 94 000 daN Drag Up: 36 000 daN Drag Down: 20 000 daN RSPP 1: 6 000 kPa at 60 SPM

ESTIMATED COSTS: DAILY $ 38 424 CUMULATIVE $ 5 436 374 SUPERVISOR M. Kramps/R. Genest

Page No. 146

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -8 'C Road Good Date 97 04 03 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 128 Depth 3285 m Progress 12 m Hole Size 215.9 mm Status Cleaning to bottom Mud: Wt 1180 kg/m3 Visc. 70 s/L W.L. 7.0 cm' pH 9.0 PV 35 mPa.s YP 12.5 Pa Gels 8/16 Pa Methyl Blue 40 Solids 0.13 % Filter Cake 2 mm Salt 400 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate 1.../min Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM -10 3RPM-7

BITS SURVEYS

No. 11 3259 m 17.6 Size - mm 215.9 m Type F4 m S.N. LJ6534 m Jets - mm 3x15.9 m Wt. - daN 5 - 15 000 m r/min 60/Slide m Out - m In PUMP In - m 3218 Liner Length Metres 67 No. mm mm Hours 34.00 1 140 235 Condition Run 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 6 sxs Caustic 47 sxs Gel PP Output AV

196 sxs Barite 4 sxs Lignite kPa 1../min m/min 4 sxs Drispac 13 500 1430 90/49

22 sxs Beads

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Background Gas: 3285 m - 109 units Trip Gas: 3285 m - 3081 units Connection Gas: 3280 m - 237 units Gas Show: 3285 - 1267 units

'327.0

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD ° Drill Actual 5.75

Reaming 1.00 ° Coring

Cond. Hole 3.75 ° Trips 4.00 ° Lubr. Rig 0.50

SPM

Repair Rig Cut Off D.L. Dev. Survey 0.25

130 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

321 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 0.50 23 Cond. Mud 8.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotated from 3273 m to 3276 m KB. Slide from 3276 m to 3282 m KB. Rotated from 3282 m to 3285 m KB. Worked pipe and surveyed. Circulated sample. Serviced rig and function tested BOPs and checked brakes. Wiper trip to casing. Tight from 2713 m to 2530 m KB. Cleaned tanks. Serviced rig. Cleaned tanks and built volume. Circulated hole and mixed mud from casing shoe. Tripped in. Reamed tight hole from 2690 m to 2710 m KB. Ran in to 3154 m KB. Cleaned to bottom and reamed from 3154 m to 3182 m KB.

String Weight: 94 000 daN Up Drag: 30 to 36 000 daN Down Drag: 20 000 daN RSPP 1: 7250 kPa at 80 SPM

ESTIMATED COSTS: DAILY $ 39 274 CUMULATIVE $ 5 475 648 SUPERVISOR M. Kramps/R. Genest

Page No. 147

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 2 °C Road Good Date 97 04 04 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 129 Depth 3321 m Progress 36 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/rn3 Visc. 140 s/L W.L. 7.5 cm3 pH 7.8 PV 55 mPa.s YP 22 Pa Gels 19/30 Pa Methyl Blue 57 Solids 12.6 % Filter Cake 2 mm Salt 150 mg/L Cal. 80 mg/L

Umin L/min

Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-21 3RPM-19

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 11 3278 m 16.7 °328.1 1 RU & RD Size - mm 215.9 3287 m 16.3 °329.1 2 Drill Actual 16.00 Type F4 3296 m 16.6 0 329.6 3 Reaming 2.00 S.N. LJ6534 m ° 4 Coring Jets - mm 3x15.9 m 5 Cond. Hole 3.00 Wt. - daN 19 000 m ° 6 Trips r/min 60/Slide m 7 Lubr. Rig 0.75 Out - m In PUMP 8 Repair Rig In - m 3218 Liner Length 9 Cut Off D.L. Metres 103 No. mm mm SPM 10 Dev. Survey 1.25 Hours 50.00 1 140 235 11 Wireline Log Condition 2 140 235 128 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

1 sx Caustic 113 sxs Gel PP Output AV Power 15 Test BOP 196 sxs Barite 1 sx Lignite kPa Umin m/min kW 16 DST

3 sxs Drispac 15 500 1410 103/53 364 17 Plug Back 1 sx Xanvis 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Background Gas: 3321 m - 386 units 21 Handle Tool Trip Gas: n/a 22 Clean to Btm 1.00 Connection Gas: 3321 m - 2264 units 23 Gas Show: 3308 m - 686 units; 3317 m 800 units 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to condition mud. Reamed from 3182 m to 3220 m KB. Ran in hole. Cleaned to bottom (5 m fill). Serviced rig and function tested BOPS. Slide from 3285 m to 3288 m KB. Rotated from 3288 m to 3295 m KB. Serviced rig and function tested Hydril. Slide from 3295 m to 3299 m KB. Rotated from 3299 m to 3304 m KB. Surveyed. Slide from 3304 m to 3305 m KB. Rotated from 3305 m to 3313 m KB. Serviced rig and function tested BOPs. Surveyed. Rotated from 3313 m to 3321 m KB.

String Weight: 95 000 daN Hole Drag Up: 40 000 daN Hole Drag Down: 22 000 daN RSPP 1: 5 000 kPa at 55 SPM

ESTIMATED COSTS: DAILY $ 38 011 CUMULATIVE $ 5 513 659 SUPERVISOR M. Kramps/R. Genest

Page No. 148

Clear Temp -4 'C Road Good Weather Date 97 04 05 Well GENOIL et al ST. LEONARD NO. 1 Depth 3343 m Progress 22 m Hole Size Mud: Wt 1195 kg/m3 Visc. 117 s/L W.L. 7.0 Methyl Blue 50 Solids 12.3 % Filter Cake Desilter Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3 6RPM-19 3RPM-17

cm3 pH 9.0 PV 60 mPa.s YP 23 Pa Gels 17/24 Pa 2 mm Salt 150 mg/L Cal. 80 mg/L

Umin Desander Underflow Wt. kg/m3 Rate Umin Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. kg/m3

Day No. 130 215.9

Ralex, 1 Tripping

Rig mm Status

203 sxs Barite 3 sxs Lignite kPa Umin m/min kW 16 DST

SURVEYS 3306 m 17.0 0 330.5

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6

RU & RD 3316 m 17.0 '331.0 Drill Actual 10.25

m Reaming m Coring m Cond. Hole m Trips 6.75 m 7 Lubr. Rig 0.50

PUMP 8 Repair Rig Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 1.00 1 140 235 11 Wireline Log 2 140 235 130 12 Run Csg/Cmt

13 Wait on Cmt HYDRAULIC 14 Nipple Up

5 sxs Caustic 115 sxs Gel PP Output AV Power 15 Test BOP

BITS No. 11 Size - mm 215.9 Type F4 S.N. LJ6534 Jets - mm 3x15.9 Wt. - daN 19 000 r/min 60/Slide Out - m 3343 In - m 3218 Metres 125 Hours 60.25 Condition 3-3-1

DRILLING MUD ADDITIVES USED:

Cl BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

4 sxs Drispac 5 sxs Beads 15 500 1410 103/53 364 17 Plug Back 4 sxs Xanvis

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Rotated from 3321 m to 3323 m KB. Surveyed. Slide from 3323 m to 3327 m KB. Rotated from 3327 m to 3333 m KB. Serviced rig. Checked motor kills and brakes. Surveyed. Slide from 3333 m to 3335 m KB. Rotated from 3335 m to 3342 m KB. Serviced rig and function tested BOPs. Surveyed. Rotated from 3342 m to 3343 m KB. MWD failed. Circulated to condition mud. Worked pipe. Pumped out 12 singles. Tripped out with flow checks. Worked tight spot from 2650 m to 2670 m KB. Pulled 42 000 daN over with pump on for 12 singles - 42 000 daN over for first stand with no pump.

String Weight: 95 000 daN Drag Up: 40 000 daN Drag Down: 19 000 daN RSPP 2: 6 500 kPa at 75 SPM

ESTIMATED COSTS: DAILY $

42 006 CUMULATIVE $ 5 555 665 SUPERVISOR M. Kramps/R. Genest

Page No. 149

I

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Cond. Mud 5.50 24 25

CrISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 4 'C Road Good Date 97 04 06 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 131 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Circulating top of fish Mud: Wt 1200 kg/m' Visc. 160 s/L W.L. 7.0 cm' pH 8.0 PV 61 mPa.s YP 24 Pa Gels 9/18 Pa Methyl Blue 60 Solids 12.6 % Filter Cake 1.5 mm Salt 100 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-20 3RPM-18

BITS No. 12

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 3 Reaming 4 Coring

Cond. Hole 6 Trips 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L. 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt

Size - mm 215.9 m Type EHP61A m 9.00 S.N. m ° Jets - mm 3x15.9 m 0 5 1.00 Wt. - daN m 9.50 r/min m 0.75 Out - m In PUMP

SPM In - m 3343 Liner Length 0.75 Metres No. mm mm Hours 1 140 235 Condition 2 140 235

DRILLING MUD ADDITIVES USED: 2 sxs Caustic

HYDRAULIC PP Output AV kPa Umin rn/min

Power kW

13 Wait on Cmt 14 Nipple Up 15 Test BOP 16 DST 17 Plug Back 18 Squeeze Cmt

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Pulled to 140 000 daN while reaming.

19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Check MWD

1.50 Pulled to 130 000 daN with pump to trip out first 13 singles. Maximum pull of 130 000 daN on 12 stands. 0.25 Pipe parted with 125 000 daN maximum. 24 Time Change 1.00

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped out. Serviced rig and changed out mud motor and MWD. Serviced rig. Closed blind rams and function tested BOPs. Tripped in drill collars and HW drillpipe and 5 stands drillpipe. Tested MWD (100 SPM - 5 500 kPa). Slipped and cut drilling line. Tripped in (fill every 30 stands). Accumulator check. Reamed from 2600 m to 2606 m KB. Serviced rig. Reamed from 2606 m to 2735 m KB. Ran in 6 stands and 1 single. Reamed from 2878 m to 2906 m KB. Ran 5 stands. Reamed from 3001 m to 3080 m KB. Serviced rig. Changed pumps, lost ±4 000 kPa pump pressure. Checked surface equipment. Pulled 9 singles (pumped as necessary). Laid down single from u-door. Pulled 4 singles (pumped as required). Pulled 12 stands (pipe parted). Circulated hole clean above fish.

ESTIMATED COSTS: DAILY $ 29 336 CUMULATIVE $ 5 585 001 SUPERVISOR M. Kramps/R. Genest

Page No. 150

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp Well GENOIL et al ST. LEONARD NO. 1 Depth 3343 m Progress 0 m Hole Size Mud: Wt 1195 kg/m' Visc. 155 s/L W.L. 8.0 Methyl Blue 57 Solids 12.5 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underfiow Wt. kg/m' 6RPM-19 3RPM-17

Rig Ralex 1 Day No. 215.9 mm Status Fishing

cm3 pH 8.5 PV 60 mPa.s YP 23 Pa Gels 1.5 mm Salt 100 mg/L Cal. 80

Umin Desander Underfiow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate

Centrifuge Overflow Wt. kg/m'

5 °C Road

Good

Date 97 04 07 132

8/17 Pa mg/L Umin Umin

TIME DISTRIBUTION BITS

No. 13 Size - mm 215.9 Type STCMFD9HL S.N. LT 7510 Jets - mm 3x28 Wt. - daN Nil r/min 20 Out - m 3343 In - m 3343 Metres Hours Condition Tag Fish

SURVEYS m m m

Code/Operation Hours 1 RU & RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 5.00

m m m m PUMP

Liner

Length No. mm mm

1 140

235 2 140

235

6 Trips 16.25 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey

115 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up

2 sxs Caustic

PP Output AV Power 15 Test BOP

1 sx Drispac

kPa Umin m/min kW 16 DST

1 sx Spercene

12 500 1270 105/54 265 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional 21 Handle Tool 2.00 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated. Tripped out, strapped drill string. Found wash out in slip area on 29th joint drillpipe above drill collars. Fish details: 446.13 m total length, top at 2142.0 m KB, base at 2588.15 m KB when string parted. Laid one joint drillpipe with stub onto catwalk. WOO. Crew decided to break out parted stub off last joint of drillpipe. Single with stub was inverted, run in hole and set in slips. Driller did not close pipe rams. When connection broke, slips jumped out and one joint drillpipe and short stub fell into the casing on top of fish no. 1 (overall length of fish no. 2 = 9.90 m). Picked up and ran 206.4 mm x 158.8 mm overshot and 3 - 171 mm OD drill collars. Laid down overshot and ran bit 13. Tripped in very slowly. Tagged fill at 2573.5 m KB. Broke circulation and cleaned 2.5 m fill. Tagged top of fish at 2576.0 m KB with 2 000 daN maximum weight. Circulated to condition mud and hole. Tripped out bit 13. Picking up fishing tools at report time.

NOTE: No marks on bit from fish.

ESTIMATED COSTS: DAILY $ 32 274 CUMULATIVE $ 5 617 275 SUPERVISOR M. Kramps/R. Genest

Page No. 151

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -4 °C Road Good Date 97 04 08

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 133 Depth 3343 m Progress 0 m Hole Size 219.9 mm Status Reaming Mud: Wt 1190 kg/m3 Visc. 190 s/L W.L. 8.0 cm3 pH 8.5 PV 56 mPa.s YP 20.5 Pa Gels 12/33 Pa Methyl Blue 56 Solids 12.0 % Filter Cake 1.5 mm Salt 100 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m' 6 RPM - 31 3 RPM - 27

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

m • 1 RU & RD m ° 2 Drill Actual m 0 3 Reaming 8.75 m c 4 Coring m • 5 Cond. Hole m • 6 Trips 11.25 m • 7 Lubr. Rig 0.25

PUMP 8 Repair Rig Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 1 140 235 130 11 Wireline Log 2 140 235 130 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 sxs Caustic PP Output AV Power 15 Test BOP 2 sxs Drispac kPa Umin m/min kW 16 DST 2 sxs Lignite 8 400 1430 90/49 197 17 Plug Back

8 400 1430 90/49 197 18 Squeeze Cmt 19 Fishing 0.75

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 3.00 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Made up and ran 206 mm x 159 mm overshot, 6 - 171 mm OD drill collars and jars. Broke circulation and worked overshot to 2576 m KB. Worked overshot, attempted to latch onto fish. No surface indication that fish is in overshot. Tripped out, did not recover fish. There were no markings on overshot to indicate fish was contacted. Made up and ran bit 13. Broke circulation, started reaming and cleaning at 2576 m KB. Required 5 hours to clean from 2576 m to 2588 m KB because of sloughing formation. (Material over shaker ranges from cutting size up to 38 mm sharp slivers.) Hole is cleaning well. Reaming and cleaning at 2596 m KB at report time.

Hole Drag: 3 - 4 000 daN up 1 - 2 000 daN down

Correction to day no. 1:33: Drillpipe washout occurred ±50 mm below upset and not in slip area as originally reported.

ESTIMATED COSTS: DAILY $ 51 669 CUMULATIVE $ 5 668 944 SUPERVISOR M. Kramps/R. Genest

Page No. 152

No. 13 Size - mm 215.9 Type STCMFD9HL S.N. LT 7510 Jets - mm 3x28 Wt. - daN 2 - 5 000 r/min 40 - 70 Out - m In In - m 3343 Metres 20 Hours 8.75 Condition Reaming

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -8 °C Road Good Date 97 04 09 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 134 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping Mud: Wt 1220 kg/m' Visc. 190 s/L W.L. 8.5 cm3 pH 9.0 PV 61 mPa.s YP 28 Pa Gels 8/28 Pa Methyl Blue 63 Solids 11.7 % Filter Cake 1.0 mm Salt 100 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM - 30 3 RPM - 29

TIME DISTRIBUTION BITS SURVEYS

No. 13 m Code/Operation Hours 1 RU & RD

Size - mm 215.9 m 2 Drill Actual Type STCMFD9HL m 3 Reaming 19.75 S.N. LT 7510 m 4 Coring Jets - mm 3x28 m 5 Cond. Hole 1.50 Wt. - daN 2 - 5 000 m ° 6 Trips 2.00 r/min 40 - 70 m ° 7 Lubr. Rig 0.75 Out - m 2746 PUMP 8 Repair Rig In - m 2576 Liner Length 9 Cut Off D.L. Metres 170 No. mm mm SPM 10 Dev. Survey Hours 28.50 1 140 235 130 11 Wireline Log Condition Reaming 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

10 sxs Caustic 201 sxs Barite PP Output AV Power 15 Test BOP 5 sxs Drispac 2 sxs Xanvis kPa Umin rn/min kW 16 DST 2 sxs Lignite 8 400 1430 90/49 197 17 Plug Back

90 sxs Gel 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Tagged fish at 2746 rn at 2:30 a.m. 21 Handle Tool Circulated from top of fish for 1.50 hours. 22 Clean to Btm

23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Reamed from 2576 m to 2595 m KB. Serviced rig and function tested top pipe rams. Reamed from 2595 m 2674 m KB. Serviced rig and function tested lower rams. Reamed from 2674 m to 2739 m KB. Serviced rig. Reamed from 2739 m to 2746 m KB (tagged fish). Circulated hole clean from top of fish. Wiper trip to casing shoe. Ran in hole - 14 m fill. Cleaned back down to top of fish.

Maximum Drag Up: 18 000 daN Maximum Drag Down: 10 000 daN on wiper trip String Weight: 70 000 daN

ESTIMATED COSTS: DAILY $ 38 279 CUMULATIVE $ 5 707 223 SUPERVISOR D. Gaboury/R. Genest

Page No. 153

Weather Well GENOIL et al ST. LEONARD NO. 1

Cloudy

Temp -8 0C Road

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Date 97 04 10 Rig Ralex, 1 Day No. 135

Good

Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping in with overshot Mud: Wt 1220 kg/rn3 Visc. 190 s/L W.L. 8.5 cm' pH 9.0 PV 61 mPa.s YP 28 Pa Gels 8/28 Pa Methyl Blue 63 Solids 11.7 % Filter Cake 1.5 mm Salt 100 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m' 6 RPM - 30 3 RPM - 29

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 13 RR m 1 RU&RD Size - mm 215.9 m • 2 Drill Actual Type STCMFD9HL m • 3 Reaming S.N. LF 7510 m 0 4 Coring Jets - mm 3x28 m • 5 Cond. Hole 5.50 Wt. - daN 2 - 5 000 m ° 6 Trips 14.00 r/min 40 - 70 m 7 Lubr. Rig 0.50 Out - m 2746 PUMP 8 Repair Rig In - m 2576 Liner Length 9 Cut Off D.L. Metres 170 No. mm mm SPM 10 Dev. Survey Hours 28.50 1 140 235 11 Wireline Log Condition 7-6-U/10 2 140 235 130 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

1 sx Caustic PP Output AV Power 15 Test BOP 1 sx Drispac kPa Umin m/min kW 16 DST

45 sxs Gel 9 000 1430 90/49 214 17 Plug Back 15 sxs Barite 18 Squeeze Cmt

19 Fishing 0.50 GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Hole in good shape. Slight bridge or ledge at 2760 m. 21 Handle Tool 3.00 22 Clean to Btm 0.50 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to top of fish. Circulated to condition mud and hole. Serviced rig and function tested pipe rams. Circulated to condition mud and hole. Strapped out of hole. Made up overshot 209.6 mm with 155.6 mm grapple. Ran in hole. Circulated to top of fish (0.25 hours). Worked overshot. Tripped out. Serviced rig. Tripped out - no fish. Checked overshot for marks and re-assembled. Ran in with overshot 209.6 mm with 155.6 mm. Hole in good shape.

String Weight: 69 000 daN Pipe Tally; 2675.13 ni Strap: 2674.13 m Difference: 1.00 m

ESTIMATED COSTS: DAILY $ <29 426>* CUMULATIVE $ 5 677 797 SUPERVISOR D. Gaboury/R. Genest

*Casing and casing equipment return - credit of $60 221 Page No. 154

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -5 °C Road Good Date 97 04 11 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 136 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Circulating - conditioning mud Mud: Wt 1220 kg/rn3 Visc. 185 s/L W.L. 8.2 cm3 pH 9.0 PV 68 mPa.s YP 26.5 Pa Gels 9/28 Pa Methyl Blue 64 Solids 11.3 % Filter Cake 1.0 firm mm Salt 100 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate 1../min Desander Underflow Wt. kg/m' Rate L/min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m' Rate L/min Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3 6 RPM - 20 3 RPM - 18

TIME DISTRIBUTION BITS

No. SURVEYS

m Code/Operation Hours 1 RU & RD

Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 8.75 Wt. - daN m 6 Trips 12.25 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. 0.50 Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 130 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST 9 000 1430 90/49 214 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 2.00 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped in with overshot. Circulated to top of fish and worked overshot. Tripped out of hole - no fish. Inspected overshot crossover catcher. Ran in with overshot 209.6 mm with 152.4 mm grapple. Slipped and cut drilling ling. Serviced rig. Tripped in with overshot. Circulated and cleaned to top of fish. Serviced riq and checked motor kills and crown saver. Circulated to condition mud and hole.

String Weight: 69 000 daN Hole Drag Up: 8 000 daN Hole Drag Down: 7 000 daN

ESTIMATED COSTS: DAILY $ 30 494 CUMULATIVE $ 5 708 291 SUPERVISOR D. Gaboury/R. Genest

Page No. 155

1

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -4 'C Road Good Date 97 04 12 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 137 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Fishing Mud: Wt 1195 kg/rn' Visc. 130 s/L W.L. 8.0 cm' pH 9.0 PV mPa.s YP 60 Pa Gels 8/25 Pa Methyl Blue 57 Solids 11.0 % Filter Cake 1.0 firm mm Salt 100 mg/L Cal. 60 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-18 3RPM-17

TIME DISTRIBUTION BITS

No.

SURVEYS m

Code/Operation Hours 1 RU & RD

Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 2.50 Wt. - daN m 6 Trips 11.75 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 130 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

55 sxs Gel PP Output AV Power 15 Test BOP 25 sxs Barite kPa Umin m/min kW 16 DST

3 sxs Caustic 9 000 1430 90/49 214 17 Plug Back 2 sxs Drispac 18 Squeeze Cmt

19 Fishing 2.75 GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

15 000 kPa while over fish. Pulled to 120 000 daN. 20 Directional 21 Handle Tool 1.00

Inside of grapple rubbed smooth (run 155.6 mm) 22 Clean to Btm 23 Spot Pill 0.75 24 WOO 4.75 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated. Worked overshot. Tripped out (no recovery). Serviced rig. WOO. Tripped in with 209.6 mm overshot with 158.8 mm grapple. Circulated bottoms up. Checked mud. Worked overshot. Serviced rig. Pumped pill (1200 kg/m' density - 250 viscosity). Tripped out with overshot (no fish). Inspected overshot and assembled with 155.6 mm grapple.

String Weight: 70 000 daN Drag Up: 8 to 9 000 daN Drag Down: 6 000 daN

ESTIMATED COSTS: DAILY $ 33 017 CUMULATIVE $ 5 741 308 SUPERVISOR D. Gaboury/R. Genest

Page No. 156

CIBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Well Depth 3343 m Progress 0 m Hole Size Mud: Wt 1200 kg/rn' Viso. 195 s/L W.L. 8.5 Methyl Blue 64 Solids 10.5 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m' 6 RPM - 24 3 RPM - 22

Rig Ralex, 1 Day No. 215.9 mm Status Tripping out

cm3 pH 9.0 PV 71 mPa.s YP 28.5 Pa Gels 1.5 mm Salt 100 mg/L Cal. 60

Umin Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate

Centrifuge Overflow Wt. kg/m'

Cloudy Temp -2 °C Road Good Date 97 04 13

GENOIL et al ST. LEONARD NO. 1 138

9/32 Pa mg/L Umin Umin

BITS SURVEYS No. m

Size - mm m Type m

S.N. m Jets - mm m Wt. - daN m r/min m Out - m PUMP In - m Liner Length Metres No. mm mm Hours 1 140 235 Condition 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 24 sxs Gel PP Output AV 12 sxs Barite kPa Umin m/min

1 sx Caustic 9 000 1410 90/49 1 sx Xanvis

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Transferred 20.0 m' from active mud system to premix tank for pills.

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual Reaming Coring

5 Cond. Hole 5.25 6 Trips 12.50 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 130 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

214 17 Plug Back 18 Squeeze Cmt 19 Fishing 4.50 20 Directional 21 Handle Tool 1.25 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped in with 206.4 mm overshot and 155.6 mm grapple. Circulated. Worked overshot (1.00 hour). Not able to get over fish. Tripped out. Serviced rig and checked crown saver and brakes. Inspected overshot and reassembled. Ran in hole with 206.4 mm overshot and 155.6 mm grapple. Circulated to condition mud and hole. Serviced rig and function tested top rams. Worked overshot (3.50 hours). Tripped out of hole with overshot. Not able to get over fish - in beside it.

String Weight: 70 000 daN Drag Up: 8 to 10 000 daN Drag Down: 5 to 8 000 daN

ESTIMATED COSTS: DAILY $ 35 089 CUMULATIVE $ 5 776 397 SUPERVISOR D. Gaboury/R. Genest

Page No. 157

ESTIMATED COSTS: DAILY $ 36 423 CUMULATIVE $ 5 812 820 SUPERVISOR D. Gaboury/R. Genest

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp -1 °C Road Good Date 97 04 14 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 139 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping In Mud: Wt 1205 kg/n' Visc. 195 s/L W.L. 8.0 cm' pH 8.5 PV 71 mPa.s YP 27 Pa Gels 7/28 Pa Methyl Blue 64 Solids 10.7 % Filter Cake 1.5 mm Salt 100 mg/L Cal. 80 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underfiow Wt. kg/m' Rate L/min Desilter Overflow Wt. kg/m3 Rate 1../min Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underfiow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-21 3RPM-19

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. m 1 RU & RD Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 2.00 Wt. - daN m 6 Trips 15.50 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. 0.50 Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 125 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

63 sxs Gel PP Output AV Power 15 Test BOP 24 sxs Barite kPa Umin m/min kW 16 DST

1 sx Caustic 8 300 1350 97/50 186 17 Plug Back 18 Squeeze Cmt 19 Fishing 2.50

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Laid down three singles: 21 Handle Tool 3.00 #1 - 9.72 m Wall: 6.81 to 6.65 mm 22 Clean to Btm #2 - 9.48 m Wall: 7.11 mm, Pit: 6.81 mm 23 #3 - 9.59 m Wall: 7.11 mm, Pit: 6.60 mm 24 Average wall thickness on remainder of pipe 8.13 mm 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Tripped out with overshot (no recovery). Laid down overshot - jars, etc, made up bit. Tripped in with bit. Serviced rig. Slipped and cut drill line. Tripped in to fish. Worked bit at fish. Circulated to condition mud. Tripped out with bit. Positive indications of 114.3 mm wear pattern in centre of bit which explains near total loss of string torque. Inspected "E" pipe on way out. Serviced rig. Made up 187.3 mm overshot and 155.6 mm spiral grapple. Bent single. Tripped in with overshot.

String Weight: 70 000 daN Hole Drag Up: 10 000 daN Hole Drag Down: 8 000 daN

Page No. 158

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CBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 12 'C Road Good Date 97 04 15 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 140 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping Mud: Wt 1200 kg/rn3 Visc. 200 s/L W.L. 8.8 cm3 pH 8.5 PV 61 mPa.s YP 20 Pa Gels 9/30 Pa Methyl Blue 64 Solids 10.6 % Filter Cake 1.5 med mm Salt 100 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Under,low Wt. kg/m3 Rate L/min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-19 3RPM-17

TIME DISTRIBUTION BITS

No. Mill-1 SURVEYS

m Code/Operation Hours 1 RU & RD

Size - mm 206.4 m 2 Drill Actual Type Flat btm m 3 Reaming S.N. C14058 m 4 Coring Jets - mm m 5 Cond. Hole Wt. - daN 4-6000 m 6 Trips 13.25 r/min 30 - 60 m 7 Lubr. Rig 0.25 Out - m 2744.80 PUMP 8 Repair Rig In - m 2744.60 Liner Length 9 Cut Off D.L.

Metres 0.20 No. mm mm SPM 10 Dev. Survey Hours 2.25 1 140 235 110 11 Wireline Log Condition Worn 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa L/min m/min kW 16 DST 8 000 1210 88/46 161 17 Plug Back

18 Squeeze Cmt 19 Fishing 3.75

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 4.25 22 Clean to Btm 23 Milling 2.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with 187.3 mm OD x 155.6 mm overshot and bent single. Broke circulation and worked overshot from 2742.60 m to 2744.60 m KB. Unable to contact fish 2, no pressure response observed. Spotted 12 m3 viscous pill on bottom (1210 kg/m3 MD, 250 s/L vis). Tripped out overshot, cut lip guide bent inwards slightly, probably from contacting fish 1. No indication fish was inside overshot. Serviced rig. Made up and ran mill-1. Broke circulation, circulated to top of fish at 2744.60 m KB (did not appear to encounter any fill). Milled fish from 2744.60 m to 2744.80 m KB in about 1.25 hours, no progress next 1.00 hour. Unable to mill further. Tripped out and inspected mill-1. Marking on mill face indicated 114.3 mm OD tube had been contacted and 162.6 mm tool ioint had also been milled. Milling progress ceased when the hard band on the tool joint was contacted by the mill. (It appears that the top of fish 2 is now located at 2744.80 m KB.) Made up and ran 206.4 mm x 171.5 mm shoe and 193.7 mm x 171.5 mm x 9.48 m wash pipe. Tripping in at report time. Plan to wash over fish 2 about 1.0 m, spot pill, trip out and run overshot to capture fish 2.

String Weight: 70 000 daN

ESTIMATED COSTS: DAILY $ 35 285 CUMULATIVE $ 5 848 105 SUPERVISOR D. Gaboury/R. Genest

Page No. 159

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BISSETT RESOURCE CONSULTANTS LTD. iel

DAILY DRILLING REPORT

Weather Clear Temp 0 'C Road Good Date 97 04 16 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 141 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping

200 s/L W.L. 8.0 cm3 pH 8.5 PV 61 mPa.s YP 20 Pa Gels 9/30 Pa 10.6 % Filter Cake 1.5 mm Salt 100 mg/L Cal. 60 mg/L kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate L/min

kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-19 3RPM-17

TIME DISTRIBUTION BITS

No. 14 SURVEYS

m Code/Operation Hours 1 RU&RD

Size - mm 215.9 m 2 Drill Actual

Type ST FDS+ m 3 Reaming

S.N. LF 9060 m 4 Coring

Jets - mm 2x28 1x24 m 5 Cond. Hole 1.00

Wt. - daN m 6 Trips 14.50

r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. 0.75

Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 100 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

4 sxs Caustic 20 sxs Gel PP Output AV Power 15 Test BOP 40 sxs Barite kPa L/min rn/min kW 16 DST

2 sxs Drispac 7 000 1100 80/41 128 17 Plug Back 3 sxs Lignite 18 Squeeze Cmt

19 Fishing 1.75 GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 1.50 22 Clean to Btm 23 Wash Over 4.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with 206.4 mm x 193.7 mm x 9.48 m wash pipe. Broke circulation and washed from 2745.59 m to 2761.03 m KB. Did not bottom out on fish no. 2. Circulated to condition mud and hole. Placed 12.0 m3 viscous pill on bottom (1210 kg/m3 MD and 250 s/L visc.) Tripped out, laid down and inspected wash pipe. Very few markings on outside. Fish no. 2 had definitely been swallowed as indicated by markings inside. Made up and ran 206.4 mm x 155.6 mm overshot (overshot run no. 12) with 158.8 mm mill control and drill collars. Slipped and cut line. Finished tripping in. Tagged fill at 2750.6 m KB. Broke circulation, cleaned 2.0 m fill to suspected top of fish at 2752.60 m KB. Worked overshot and made 28 attempts to latch onto the fish - unsuccessful. Rotated overshot and made further 12 attempts to latch onto the fish - unsuccessful. Worked overshot from 2752.60 m to 2854.60 m KB. No pressure indication of fish entering overshot. Tripped out and inspected overshot. Found cut lip guide bent outwards 12.5 mm , three small gouges on outside of cut lip guide. Fish did not enter overshot. Ran bit 14, tripping in at report time to clean suspected fill and locate top of fish.

String Weight: 73 000 daN While running overshot, pulled to 90 000 daN maximum No pump change at all during the procedure Hole Drag: 6 to 8 000 daN

ESTIMATED COSTS: DAILY $ 28 889 CUMULATIVE $ 5 876 994 SUPERVISOR D. Gaboury/R. Genest

Page No. 160

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Mud: Wt 1200 kg/rn3 Visc. Methyl Blue 64 Solids Desilter Underflow Wt. Desilter Overflow Wt.

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 4 °C Road Good Date 97 04 17 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex 1 Day No. 142 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Laying Down Fish 2 Mud: Wt 1180 kg/rn3 Visc. 203 s/L W.L. 8.0 cm3 pH 9.0 PV 62 mPa.s YP 26.5 Pa Gels 8/30 Pa Methyl Blue 64 Solids 10.4 % Filter Cake 1.0 firm mm Salt 100 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate L/min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-20 3RPM-18

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 14 m 1 RU & RD Size - mm 215.9 m 2 Drill Actual Type ST FDS+ m 3 Reaming S.N. LF 9060 m 4 Coring Jets - mm 2x28 1x24 m ° 5 Cond. Hole 3.00 Wt. - daN Nil m ° 6 Trips 14.25 r/min 35 m 7 Lubr. Rig Out - m 2806 PUMP 8 Repair Rig In - m 2749 Liner Length 9 Cut Off D.L. Metres 57 No. mm mm SPM 10 Dev. Survey Hours 3.00 reams_ 1 140 235 130 11 Wireline Log Condition 3-2-1 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

33 sxs Barite PP Output AV Power 15 Test BOP 3 sxs Gel kPa L/min m/min kW 16 DST

9 250 1430 90/49 220 17 Plug Back 18 Squeeze Cmt

19 Fishing 3.50 GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 1.75 22 Clean to Btm 1.50 23 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with bit 14. Broke circulation, cleaned fill and chased fish 2 from 2749.0 m to 2806.0 m KB. Set 20 000 daN on fish 2 - no movement. Circulated to condition mud and hole. Spotted 12.0 m3, 1210 kg/m3 MD, 250 s/L pill on bottom. Tripped out bit 14, strapped drill string, +1.05 m difference, no correction. Made up and ran 206.4 mm x 155.6 mm overshot with 158.8 mm mill control. Broke circulation and cleaned bridge at 2760.0 m KB. Circulated to top of fish at 2806.0 m KB. Worked fish into overshot, pump pressure increased from 6 000 kPa to 10 500 kPa. Set 30 000 daN string_weight on fish. Pulled to 120 000 daN (string weight: 73 000 daN) to free fish, no pump pressure loss observed. Pulled out joint 1 at 110 to 120 000 daN. Pumped out joint 2 at 90 000 daN, no pump pressure loss observed. Stood back kelly and tripped out overshot. Recovered fish 2 (fish 2 consisted of: remainder of tool joint, 155.6 mm OD box end which had been milled to the hard band and 1 - 114.3 mm OD joint drillpipe, overall length: 9.35 m). Preparing to trip in with bit 14.

ESTIMATED COSTS: DAILY $ 29 652 CUMULATIVE $ 5 906 646 SUPERVISOR D. Gaboury/R. Genest

Page No. 161

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No. 14 RR Size - mm 215.9 Type ST FDS+ S.N. LF 9060 Jets - mm 2x28. 1x24 Wt. - daN 1 - 2 000 r/min 0 - 30 Out - m 2816 In - m 2806 Metres 10 Hours 4.00 (ream) Condition 3-3-1

DRILLING MUD ADDITIVES USED: 65 sxs Barite 24 sxs Gel

2 sxs Caustic 1 Xanvis

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

BITS

SURVEYS m m m m m m m

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

HYDRAULIC PP Output AV kPa Umin m/min 9 000 1430 90/49

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

LEONARD NO. 1 0 m Hole Size

280 s/L W.L. 8.5 10.5 % Filter Cake

kg/ma Rate kg/ma Rate

kg/ma

Well GENOIL et al ST. Depth 3343 m Progress Mud: Wt 1185 kg/ma Vise. Methyl Blue 67 Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

Rig Ralex, 1 215.9 mm Status Tripping

cm3 pH 9.5 PV 60 mPa.s YP 23 Pa Gels 9/31 Pa 1.0 firm mm Salt 100 mg/L Cal. 40 mg/L

Desander Underflow Wt. kg/m3 Rate Umin Desander Overflow Wt.

kg/ma Rate Umin Centrifuge Overflow Wt. kg/ma

Weather Cloudy Temp 2 °C Road Good Date 97 04 18 Day No. 143

Umin Umin

6RPM-20 3RPM-19

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual Reaming Coring

° 5 Cond. Hole 6.50 6 Trips 14.75 7 Lubr. Rig 0.25 8 Repair Rig 9 Cut Off D.L. 0.75

SPM 10 Dev. Survey 130 11 Wireline Log 130 12 Run Csg/Cmt

13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

214 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 1.75 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished laying down Fish 2 and overshot. Ran bit 14RR. Broke circulation at 2806.0 m KB. Circulated and cleaned fill to top of Fish 1 at 2815.64 m KB. Circulated to condition mud and hole. Spotted 14.0 ma viscous pill on bottom (1210 kg/m3 MD and +300 s/L visc.). Tripped out bit 14 RR. Made up and ran 206.4 mm x 114.3 mm overshot and drill collars. Slipped and cut line. Finished tripping in. Broke circulation and worked tight spot at 2660 m KB. Circulated to top of Fish, circulated bottoms up. Latched onto Fish 1 at 2815 m KB. Began working Fish 1 and attempting to break circulation. Jarred (uppers set fired about six times). Worked Fish 1 to 140 000 daN, obtained full circulation at 16 000 kPa pump pressure (pump pressure 6 800 kPa before latching onto Fish). Fish began moving. Continued to work Fish 1 out of the hole at report time, bottom of Fish 1 is at 2892 m KB (370 m above stuck depth).

ESTIMATED COSTS: DAILY $ 32 071 CUMULATIVE $ 5 938 717 SUPERVISOR D. Gaboury/R. Genest

Page No. 162

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C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 2 'C Road Fair Date 97 04 19 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 144 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Tripping Mud: Wt 1185 kg/m3 Visc. 260 s/L W.L. 8.5 cm3 pH 9.5 PV 60 mPa.s YP 23 Pa Gels 9/31 Pa Methyl Blue 67 Solids 10.5 % Filter Cake 1.0 firm mm Salt 100 mg/L Cal. 40 mg/L Desilter Undertow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM - 20 3 RPM - 19

BITS SURVEYS No. 14 RR m Size - mm 215.9 m

Type ST FDS+ m

S.N. LF 9060 m Jets - mm 2x28 1x24 m

Wt. - daN m r/min m Out - m PUMP In - m Above Liner Length Metres Casing No. mm mm Hours Shoe 1 140 235 Condition 1 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC PP Output AV kPa Umin m/min

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5

RU & RD Drill Actual Reaming Coring Cond. Hole

6 Trips 19.00 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 1.50 22 Clean to Btm 23 RU&RD 24 Machine 3.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued tripping out Fish 1. Removed overshot and laid down fishing tools. Tripped out and laid down Fish 1. NOTE: Fish was plugged with formation solids. Recovered Fish 1 in its entirety. Serviced rig and checked BOPs. Ran drill collars and 78 joints 114.3 mm OD premium drillpipe. Rigged in lay down machine. Serviced rig and checked crown saver. Laid down 78 ioints 114.3 mm OD premium drillpipe. Tripped out drill collars. Ran drill collars, strapped and calipered on trip in. Rigged out lay down machine. Plan to run drill string to casing shoe, circulate while installing top drive and shakers.

ESTIMATED COSTS: DAILY $ 34 144 CUMULATIVE $ 5 972 861 SUPERVISOR D. Gaboury/R. Genest

Page No. 163

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ESTIMATED COSTS: DAILY $ 30 963 CUMULATIVE $ 6 003 796 SUPERVISOR D. Gaboury/R. Genest

BISSETT RESOURCE CONSULTANTS LTD. 40),

DAILY DRILLING REPORT

Weather Clear Temp -2 °C Road Good Date 97 04 20 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 145 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Rigging in top drive Mud: Wt 1190 kg/m3 Visc. 155 s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow VVt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 14 RR m 1 RU & RD Size - mm 215.9 m 2 Drill Actual Type ST FDS+ m 3 Reaming

S.N. LF 9060 m 4 Coring Jets - mm 2x28 1x24 m 5 Cond. Hole 1.50 Wt. - daN m 6 Trips 3.25 r/min Circulating m 7 Lubr. Rig Out - m Trip PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Installing 24 Shakers & 25 Tesco Unit 19.25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran 114.3 mm OD drillpipe in right order. Tripped in to 2093.89 m KB. Circulated bottoms up. Tore out and removed old shakers. Installed new linear motion shakers. Dumped and cleaned mud tanks. Mixed new mud volume. Loaded out and moved off location 114.3 mm OD drillpipe that had been laid down. Loaded out SOC skid unit and transferred to Dartmouth. Moved 45 m' water tank to side of location. Started installing top drive gear. About 50% complete at report time. Continued to inspect replacement "E" drillpipe. Plan to inspect HWDP and drill collars (Fish 1). Anticipate having pipe fully inspected by Monday, April 21, 1997. Should be operational tomorrow.

Page No. 164

Clats.BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 146

Clear Temp 4 °C Road Good Date 97 04 21

Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Rigging in top drive Mud: Wt 1200 kg/m' Visc. 145 s/L W.L. 8.0 cm' pH 9.5 PV 64 mPa.s YP 25 Pa Gels 9/31 Pa Methyl Blue 70 Solids 10 % Filter Cake 1.0 mm Salt 100 mg/L Cal. 400 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM - 22 3 RPM - 20

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 14 RR m • 1 RU&RD Size - mm 215.9 m • 2 Drill Actual Type ST FDS+ m • 3 Reaming S.N. LF 9060 m ▪ 4 Coring Jets - mm 2x28. 1x24 m ° 5 Cond. Hole Wt. - daN m ° 6 Trips r/min Circulating m ° 7 Lubr. Rig Out - m Trip PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 160 sxs Gel 4 sxs Caustic PP Output AV Power 15 Test BOP 145 sxs Barite kPa Umin m/min kW 16 DST

1 sx Xanvis 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 RU Top Drive 24.00 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to rig in top drive assembly. Should be operational by 12:00 noon.. Continued to inspect Grade "E" drillpipe. Inspection equipment

moving to location this morning to inspect HWDP and drill collars. Held safety meetings with both crews. Rigging in top drive assembly at report time.

ESTIMATED COSTS: DAILY $ 32 347 CUMULATIVE $ 6 036 143 SUPERVISOR D. Gaboury/R. Genest

Page No. 165

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CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Calm Temp 4 °C Road Well GENOIL et al ST. LEONARD NO, 1

Good Date 97 04 22 Rig

Ralex, 1 Day No. 147 Depth 3343 m Progress 0 m Hole Size 215.9 mm Status Picking up drillpipe

Mud: Wt 1190 kg/m3 Visc. 185 s/L W.L. 9.0 cm3 pH 9.0 PV 93 mPa.s YP 31 Pa Gels 14/30 Pa Methyl Blue 64 Solids 8.5 % Filter Cake

1.0 mm Salt 60 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. Desilter Overflow Wt._ kg/m3 Rate L/min Desander Overflow Wt. Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. 6RPM-22 3RPM-19

kg/m3 Rate L/min kg/m3 Rate L/min kg/m3

BITS SURVEYS No. 14 RR m Size - mm 215.9 m Type ST FDS+ m

S.N. LF 9060 m Jets - mm 2x28 1x24 m Wt. - daN 0 m r/min - 0 m Out - m PUMP In - m 3343 Liner Length Metres 0 No. mm mm Hours 0 1 140 235 Condition Inc. 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 79 sxs Gel PP Output AV

102 sxs Barite kPa L/min m/min 3 sxs Xanvis 7600 1140 101/54 3 sxs Caustic

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

0 1

TIME DISTRIBUTION Code/Operation Hours

2 3 4

RU & RD Drill Actual

° Reaming Coring

° 5 Cond. Hole 0 6 Trips 6.00

7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 104 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

144 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 RU Top Drive 18.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished rigging in top drive. Rigging up completed at 23:59, 97 04 21. Held safety meetings and top drive operational training sessions for all crews. Checked out all mountings and securing points after installation, okay. Finished inspecting replacement Grade "E" drillpipe, HWDP and drill collars. Tripped out to drill collars. Started picking up replacement Grade "E" drillpipe. Sixty joints picked up at report time, 80 joints remaining to be picked up. Plan to make a clean-out trip to present total depth, trip out, pick up and run directional drilling assembly.

ESTIMATED COSTS: DAILY $ 35 250 CUMULATIVE $ 6 039 045 SUPERVISOR D. Gaboury/M. Kramps

Page No. 166

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Calm Temp -2 'C Road Good Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1

Date 97 04 23

Day No. 148

Depth 3345 m Progress 2 m Hole Size 215.9 mm Status Circulating Mud: Wt 1210 kg/m3 Visc. 175 s/L W.L. 8.2 cm3 pH 9.0 PV 83 mPa.s YP 30.5 Pa Gels 10/21 Pa Methyl Blue 67 Solids 7.8 % Filter Cake 1.0 firm mm Salt 100 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate L/min Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate LJmin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-19 3RPM-18

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 14 RR m ° 1 RU & RD Size - mm 215.9 m 2 Drill Actual 0.25 Type ST FDS+ m 3 Reaming 10.25 S.N. LF 9060 m ° 4 Coring Jets - mm 2x28, 1x24 m ° 5 Cond. Hole 5.25 Wt. - daN 4 000 m 6 Trips 8.00 r/min 65 m 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig In - m 3343 Liner Length 9 Cut Off D.L. Metres 2 No. mm mm SPM 10 Dev. Survey Hours Ream 4 1 140 235 125 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

30 sxs Gel 3 sxs Drispac PP Output AV Power 15 Test BOP 84 sxs Barite kPa L/min m/min kW 16 DST

2 sxs Xanvis 10 000 1380 101/52 230 17 Plug Back 2 sxs Caustic 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

String Weight Static: 82 000 daN 21 Handle Tool String Weight Up: 120 000 daN (+38 000 daN) 22 Clean to Btm String Weight Down: 78 000 daN (+4 000 daN) 23

24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished picking up replacement "E" drillpipe. Tripped in with bit 14. Broke circulation and reamed bridges at 2500 m to 2503 m KB, 2708 m to 2710 m KB, 2860 m to 2873 m KB and 3002 m to 3343 m KB (only slight resistance from 3002 m to 3343 m KB. Drilled 2.0 m of hole to ensure no junk on bottom of hole. Circulating at report time to condition mud and hole. Drilling fluid is patchy. MD as low as 1165 kg/m3 and funnel viscosity ranges from 65 to 175 s/L. Hole began unloading formation solids up to 3 to 4 mm in diameter for the past two circulations. Held safety meetings and top drive familiarization meetings with all crews.

ESTIMATED COSTS: DAILY $ 32 827 CUMULATIVE $ 6 071 872 SUPERVISOR D. Gaboury/R. Genest

Page No. 167

1

RESOURCE CONSULTANTS LTD. C14,BISSETT

DAILY DRILLING REPORT

Weather Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 149

Clear Calm Temp 4 °C Road Good Date 97 04 24

Depth 3349 m Progress 4 m Hole Size 215.9 mm Status Drilling Mud: Wt 1200 kg/m3 Visc. 190 s/L W.L. 7.5 cm' pH 9.0 PV 83 mPa.s YP 30 Pa Gels 10/21 Pa Methyl Blue 67 Solids 7.8 % Filter Cake 1.0 mm Salt 100 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3 6RPM-19 3RPM-18

BITS SURVEYS No. 14 RR 15 m Size - mm 215.9 215.9 m Type ST FDS+ F4 m S.N. LF 9060 LJ7973 m Jets - mm 2x28, 1x24 2x13.7/1x14.3 m Wt. - daN 4 000 10 000 m r/min 65 35 m Out - m 3345 PUMP In - m 3343 3345 Liner Length Metres 2 4 No. mm mm Hours Ream 14.25 Drill 0.25 1.50 1 140 235 Condition 3-3-1 2 140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 18 sxs Gel 1 sx Drispac PP Output AV 77 sxs Barite kPa Umin m/min

2 sxs Xanvis 14 500 1380 101/52 2 sxs Caustic

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 1.50 3 Reaming 4.00 4 Coring 5 Cond. Hole 2.00 6 Trips 16.25 7 Lubr. Rig 0.25 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log

125 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

333 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to condition mud and hole. Cuttings coming over shaker were minimal at end. Tripped out bit 14RR, pumped out 8 stands, hole drag ±40 000 daN. Ran bit 15 and directional drilling assembly. Tested MWD at intermediate casing shoe, okay. Serviced rig and function tested BOPs. Continued trip in, reamed from 2760 m to 2900 m KB and 3250 m to 3345 m KB. Drilled. Slide from 3345 m to 3349 m KB. Drilling at report time, ROP: ±2.5 m/h.

String Weight: 82 000 daN Hole Drag Up: 33 000 daN Hole Drag Down; 6 000 daN

ESTIMATED COSTS: DAILY $ 32 949 CUMULATIVE $ 6 104 821 SUPERVISOR D. Gaboury/M. Kramps

Page No. 168

Rig Ralex, 1

kg/m3 Rate Umin kg/m3 Rate Umin

kg/m'

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt.

ESTIMATED COSTS: DAILY $ 42 258 CUMULATIVE $ 6 147 079 SUPERVISOR D. Gaboury / M. Kramps

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Calm Temp + 4 Well GENOIL et al ST. LEONARD NO. 1

°C Road Good Date 97 04 25 Day No. 150

Depth 3 367 m Progress 18 m Hole Size Mud: Wt 1 195 kg/m3 Visc. 156 s/L W.L. 7.5 Methyl Blue 67 Solids 9.8 % Filter Cake

216 mm Status cm3 pH 9.0 PV 65

1 mm Salt mPa.s YP 30 Pa Gels 12/36 Pa

100 mg/L Cal. 40 mg/L

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 15 16RR 3 347 m 17.2 1 RU & RD Size - mm 216 216 m 2 Drill Actual 8.00 Type F4 STFDST m 3 Reaming S.N. LJ7973 LF9060 m 4 Coring Jets - mm 2x127 1x143 2x28, 1x24 m 5 Cond. Hole Wt. - daN 30 000 m 6 Trips 11.50 r/min 60 m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig 2.50 In - m 3 345 3 367 Liner Length 9 Cut Off D.L. 1.00 Metres 22 No. mm mm SPM 10 Dev. Survey 0.50 Hours 9.75 1 140 235 125 11 Wireline Log Condition INC Run in 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Gel 30 sxs PP Output AV Power 15 Test BOP Drispac 2 sxs kPa Umin m/min kW 16 DST Caustic 3 sxs 15 500 1 380 101/52 356 17 Plug Back Lignite /sxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Repair stand pipe. Serviced rig and function tested BOPs. Drilling from 3 349 m to 3 355 m (rotate). Survey. Serviced rig. Drilling from 3 355 m to 3 360 m (slide). Rotate from 3 360 m to 3 364 m. Slide from 3 364 m to 3 367 m. Loss of 2 000 kPa. Suspect wash out. POOH to 2 699 m. Work tight hole. 130 000 daN string pull. String weight of 92 000 daN. String parted. POOH. Fish left in hole - 39 stands plus BHA. Approx. top of fish 2 099 m or higher. Serviced rig and function tested BOPs. Slip and cut drilling line. Pick up bit and BHA and RIH.

BHA: Bit, Bit Sub, XO, 6 x 171 mm DC

NOTE: Pipe parted in upset area of replacement Grade E drill pipe.

Page No. 169

Clean out trip

BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Calm Temp + 4 °C Road Good Date 97 04 25 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 150 Depth 3 367 m Progress 18 m Hole Size 216 mm Status Clean out trip Mud: Wt 1 195 kg/rn3 Vise. 156 s/L W.L. 7.5 cm3 pH 9.0 PV 65 mPa.s YP 30 Pa Gels 12/36 Pa Methyl Blue 67 Solids 9.8 % Filter Cake 1 mm Salt 100 mg/L Cal. 40 mg/L

Umin Umin

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Repair stand pipe. Serviced ria and function tested BOPs. Drilling from 3 349 m to 3 355 m (rotate). Survey. Serviced ria. Drilling from 3 355 m to 3 360 m (slide). Rotate from 3 360 m to 3 364 m. Slide from 3 364 m to 3 367 m. Loss of 2 000 kPa. Suspect wash out. POOH to 2 699 m. Work tiaht hole. 130 000 daN strina pull. String weiaht of 92 000 daN. String parted. POOH. Fish left in hole - 39 stands plus BHA. Approx. too of fish 2 099 m or hiaher. Serviced rig and function tested BOPs. Slip and cut drilling line. Pick uo bit and BHA and RIH.

ESTIMATED COSTS: DAILY $ 42 258 CUMULATIVE $ 6 147 079 SUPERVISOR D. Gaboury / M. Krems

Page No. 170

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 15 16RR 3 347 m 17.2 1 RU & RD Size - mm 216 216 m 2 Drill Actual 8.00 Type F4 STFDST m o3 Reaming S.N. LJ7973 LF9060 m 4 Coring Jets - mm 2x127. 1x143 2x28. 1x24 m 5 Cond. Hole Wt. - daN 30 000 m 6 Trips 11.50 r/min 60 m ° 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig 2.50 In - m 3 345 3 367 Liner Length 9 Cut Off D.L. 1.00 Metres 22 - No. mm mm SPM 10 Dev. Survey 0.50 Hours 9.75 1 140 235 125 11 Wireline Log Condition INC Run in 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Gel 30 sxs PP Output AV Power 15 Test BOP Drispac 2 sxs kPa Umin m/min kW 16 DST Caustic 3 sxs 15 500 1 380 101/52 356 17 Plug Back Lignite lsxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

21 Handle Tool 22 Clean to Btm 23 24 25

BHA: Bit, Bit Sub, XO. 6 x 171 mm DC

NOTE: Pioe parted in upset area of replacement Grade E drill pipe.

ESTIMATED COSTS: DAILY $ 39 415 CUMULATIVE $ 6 186 494 SUPERVISOR M. Kramps / D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp + 6 °C Road Good Date 97 04 26 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 151

Depth 3 367 m Progress 0 m Hole Size 216 mm Status POOH Mud: Wt 1 190 kg/rn' Visc. 300 s/L W.L. 8.0 cm' pH 8.5 PV 71 mPa.s YP 24 Pa Gels 11/34 Pa Methyl Blue 64 Solids 8.7 % Filter Cake 1 mm Salt 100 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 16RR m 1 RU & RD Size - mm 216 m 2 Drill Actual Type STFDST m 3 Reaming S.N. LF9060 m 4 Coring Jets - mm 2x28, 1x24 m 5 Cond. Hole 1.00 Wt. - daN m 6 Trips 11.00 r/min m 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m 3 367 Liner Length 9 Cut Off D.L. Metres Clean out No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 11.75

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) RIH. Tag fish at 2 083.94 m. Circulate and condition mud. POOH. Check wall thickness of remaining Grade "E" DP in fishing string. Pick up fishing tools. Serviced rig. Check crown stopper and brakes. RIH with 8 1/8" overshot with 4 1/2" grapple. Latch on to fish. Attempted to circulate. No circulation. Work pipe to maximum of 160 000 daN from 22:30 hrs to 12:30 hrs. Start to make progress. POOH with fish. 8 stands of drill pipe to pull to top of fish at report time.

Page No. 171

BITS No. 16RR Size - mm 216 Type STFDST S.N. LF9060 Jets - mm Wt. - daN

2x28. 1x24

r/min Out - m In - m 3367 Metres Clean out Hours Condition

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Mud: Wt 1 190 kg/m' Visc. Methyl Blue 64 Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underfiow Wt.

cm3 pH 8.5 PV 71 mPa.s YP 1 mm Salt 100 Umin Desander Underfiow Wt.

Umin Desander Overflow Wt. Centrifuge Overflow Wt.

Date 97 04 26 Day No. 151

24 Pa Gels 11/34 Pa mg/L Cal. 40 mg/L kg/m' Rate Umin kg/m' Rate Umin kg/m'

300 s/L W.L. 8.0 8.7 % Filter Cake kg/m' Rate

kg/m' Rate kg/m'

Weather Clear Temp + 6 °C Road Good Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex. 1

Depth 3 367 m Progress 0 m Hole Size 216 mm Status POOH

TIME DISTRIBUTION SURVEYS Code/Operation Hours m • 1 RU & RD

m • 2 Drill Actual m • 3 Reaming m • 4 Coring m • 5 Cond. Hole 1.00

m • 6 Trips 11.00 m • 7 Lubr. Rig 0.25

PUMP 8 Repair Rig

Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey

1 140 235 11 Wireline Log 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

17 Plug Back 18 Squeeze Cmt 19 Fishing 11.75 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) RIH. Tao fish at 2 083.94 m. Circulate and condition mud. POOH. Check wall thickness of remaining Grade "E" DP in fishing string. Pick up fishing tools. Serviced ria. Check crown stopper and brakes. RIH with 8 1/8" overshot with 4 1/2" grapple. Latch on to fish. Attempted to circulate. No circulation. Work pipe to maximum of 160 000 daN from 22:30 hrs to 12:30 hrs. Start to make progress. POOH with fish. 8 stands of drill pipe to pull to top of fish at report time.

ESTIMATED COSTS: DAILY $

39 415 CUMULATIVE $ 6 186 494 SUPERVISOR M. Kramps / D. Gaboury

Page No. 172

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp - 2 Well GENOIL et al ST. LEONARD NO. 1

°C Road Good Ralex, 1

Date 97 04 27 Day No. 152 Rig

Depth 3 367 m Progress 0 m Hole Size Mud: Wt 1 180 kg/m' Visc. 308 s/L W.L. 8.4 Methyl Blue 63 Solids 0.086 % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

216 mm Status

1 mm Salt

Desander Underflow Wt. Desander Overflow Wt. Centrifuge Overflow Wt.

RIH for clean out

kg/m' Rate Umin kg/m' Rate Umin

kg/m'

Urnin Umin

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 16 m 1 RU & RD Size - mm 216 m 2 Drill Actual Type FDS m 3 Reaming 0.25 S.N. LF9051 m 4 Coring Jets - mm 3x20 m 0 5 Cond. Hole Wt. - daN m 6 Trips 23.50 r/min m 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres Clean out No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional BHA: Bit, Bit Sub, 6 x 171 m DC, Jars, 3 HWDP, XO, Total Length = 90.86 m 21 Handle Tool

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) POOH with fish. Inspect monels and drill collars and HWDP. Lay down drill collars. Monels and HWDP and 30 joints of bent drill pipe. Serviced rig. Check motor kills. Check brakes. Function tested blind rams. RIH. Pick up 18 joints of new Grade "E". Continue to RIH to 3 327 m. Wash and ream to bottom.

ESTIMATED COSTS: DAILY $ 46 634 CUMULATIVE $ 6 233 128 SUPERVISOR M. Kramps / D. Gaboury

Page No. 173

J

cm' pH 8.5 PV 75 mPa.s YP 25.5 Pa Gels 10/32 Pa 100 mg/L Cal. 40 mg/L

411 BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Clear Temp - 2 °C Road Good

Date 97 04 27 Well GENOIL et al ST. LEONARD NO. 1 Rig Depth 3 367 m Progress 0 m Hole Size 216 mm Status Mud: Wt 1 180 kg/m3 Visc. Methyl Blue 63 Solids Desilter Underflow Wt. Umin Desilter Overflow Wt. Umin Centrifuge Underflow Wt.

308 s/L W.L. 0.086 % Filter Cake

kg/m3 Rate kg/m3 Rate

kg/m3

Gels 10/32 Pa 40 mg/L

Umin Umin

Ralex. 1 Day No. 152 RIH for clean out

8.4 cm3 pH 8.5 PV 75 mPa.s YP 25.5 Pa 1 mm Salt 100 mg/L Cal.

Desander Underflow Wt. kg/m3 Rate Desander Overflow Wt. kg/m3 Rate Centrifuge Overflow Wt. kg/m3

TIME DISTRIBUTION BITS

SURVEYS

Code/Operation Hours No. 16

m

o 1 RU & RD Size - mm 21~_ m • 2 Drill Actual Type FDS m • 3 Reaming 0.25 S.N. LF9051 m • 4 Coring Jets - mm 3x20 m ▪ 5 Cond. Hole Wt. - daN m • 6 Trips 23.50 r/min m • 7 Lubr. Rig 0.25 Out - m

PUMP 8 Repair Rig In - m

Liner Length 9 Cut Off D.L. Metres Clean out

No. mm mm SPM 10 Dev. Survey Hours

1 140 235 11 Wireline Log Condition

2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional BHA: Bit. Bit Sub. 6 x 171 m DC. Jars. 3 HWDP, XO. Total Length = 90.86 m

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) POOH with fish. Inspect monels and drill collars and HWDP. Lay down drill collars. Monels and HWDP and 30 ioints of bent drill pipe. Serviced rig. Check motor kills. Check brakes. Function tested blind rams. RIH. Pick up 18 ioints of new Grade "E". Continue to RIH to 3 327 m. Wash and ream to bottom.

ESTIMATED COSTS: DAILY $

46 634 CUMULATIVE $ 6 233 128 SUPERVISOR M. Kramps / D. Gaboury

Page No. 174

iCI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp + 6 °C Road Good Date 97 04 28 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 153 Depth 3 367 m Progress 0 m Hole Size 216 mm Status Circulate and condition Mud: Wt 1 205 kg/rn3 Visc. 180 s/L W.L. 7.5 cm' pH 9.5 PV 65 mPa.s YP 22.5 Pa Gels 9/34 Pa

Methyl Blue 67 Solids 7.3 % Filter Cake 1 firm mm Salt 80 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m' Rate L/min

Desilter Overflow Wt. kg/m' Rate L/min Desander Overflow Wt. kg/m' Rate L/min

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 16 m • 1 RU&RD Size - mm 216 m ° 2 Drill Actual Type FDS m • 3 Reaming 1.25 S.N. LF9051 m ° 4 Coring Jets - mm 3x20 m • 5 Cond. Hole 18.00 Wt. - daN m • 6 Trips 4.25 r/min m ° 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres Clean out No. mm mm SPM 10 Dev. Survey Hours 1 140 235 130 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Caustic 5 sxs Barite 140 sxs PP Output AV Power 15 Test BOP Drispac 5 sxs kPa L/min m/min kW 16 DST Lignite 2 sxs 17 Plug Back Xanvis 2 sxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Pipe in hole: 21 Handle Tool 124 Premium "E" 22 Clean to Btm 62 New "E" 23 158 Grade "G" 24 RSPP 5 200 kPa at 80 SPM. 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Was to bottom. Circulate and condition mud. Service rig. Check crown stop. Wiper trip to shoe. Wash to bottom. 7 m fill. Service rig. Check motor kills and crown stop. Circulate and condition mud.

Pick up weight 109 000 daN String weight 86 000 daN Slack off 69 000 daN

ESTIMATED COSTS: DAILY $ 34 642 CUMULATIVE $ 6 267 770 SUPERVISOR M. Kramps / D. Gaboury

Page No. 175

J

DAILY DRILLING REPORT

Cste..BISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 34 642 CUMULATIVE $ 6 267 770 SUPERVISOR M. Kramps / D. Gaboury

Page No. 176

J

Weather Raining Temp + 6 °C Road Good Date 97 04 28 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 153 Depth 3 367 m Progress 0 m Hole Size 216 mm Status Circulate and condition Mud: Wt , 1 205 kg/rn3 Visc. 180 s/L W.L. 7.5 cm3 pH 9.5 PV 65 mPa.s YP 22.5 Pa Gels 9/34 Pa

Methyl Blue 67 Solids 7.3 % Filter Cake 1 firm mm Salt 80 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m3 Rate L/min Desander Underflow Wt. kg/m3 Rate L/min

Desilter Overflow Wt. kg/m3 Rate L/min Desander Overflow Wt. kg/m3 Rate L/min

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 16 m 1 RU & RD Size - mm 216 m 2 Drill Actual Type FDS m ° 3 Reaming 1.25 S.N. LF9051 m 4 Coring Jets - mm 3x20 m 5 Cond. Hole 18.00 Wt. - daN m 6 Trips 4.25 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres Clean out No. mm mm SPM 10 Dev. Survey Hours 1 140 235 130 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

Caustic 5 sxs Barite 140 sxs PP Output AV Power 15 Test BOP Drispac 5 sxs kPa L/min m/min kW 16 DST Lignite 2 sxs 17 Plug Back Xanvis 2 sxs 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional

Pipe in hole: 21 Handle Tool 124 Premium "E" 22 Clean to Btm 62 New "E" 23 158 Grade "G" 24 RSPP 5 200 kPa at 80 SPM. 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Was to bottom. Circul- g and condition mud. Service ria. Check crown stop. Wiper trip to shoe. Wash to bottom. 7 m fill. Service ria. Check motor kills and crown stop. Circulate and condition mud.

Pick up weight 109 000 daN String weight 86 000 daN Slack off 69 000 daN

DRILLING MUD ADDITIVES USED: Caustic 1 sxs PP Drispac 1 sxs kPa Barite 27 sxs Xanvis 1 sxs

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) Plan to lay down Grade "E" premium pipe. Change out pipe rams. Run in BHA. Inspect new Grade "E" and Grade "G" pipe with ultrasonic WT and MPI over upset areas.

BITS No. 16 Size - mm 216 Type FDS S.N. LF9051 Jets - mm 3x20 Wt. - daN r/min Out - m In - m Metres nil Hours Condition Clean out

SURVEYS m m m m m m m

PUMP Liner Length

No. mm mm SPM 1 140 235 2 140 235 130

HYDRAULIC Output AV

Power Umin m/min

kW

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 17.75 6 Trips 5.75 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L. 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up 15 Test BOP 16 DST 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

10 400 1 430 105/54 247

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Overcast Temp

+ 3 oC Road Fair Date 97 04 29 Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1

Day No. 154 Depth 3 367 m Progress 0 m Hole Size 216 mm Status

Lady down drill string

Mud: Wt 1 205 kg/rn3 Viso. 195 s/L W.L. 8.0 cm' pH 9.0 PV 61

mPa.s YP 30.5 Pa Gels 14-39 Pa Methyl Blue 67 Solids 7.5 % Filter Cake 1 firm mm Salt

80 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt.

kg/m3 Rate Umin Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt.

kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulate and condition mud and hole. Serviced rig and function tested upper and lower pipe rams. Checked crown saver. Checked brakes. Trip out of hole. Hole tight at 2 943 to 2 858 m. Rig up to lay down Grade "E" premium pipe.

String weight 86 000 daN Pulled to 130 000 daN at 2 943 m RSPP - Pump #2 = 5 200 kPa at 80 SPM

ESTIMATED COSTS: DAILY $ 34 007 CUMULATIVE $ 6 301 777

SUPERVISOR R. Genest / M. Kramps

Page No. 177

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 28 608 CUMULATIVE $ 6 330 385 SUPERVISOR R. Genest/M. Kramos

Weather Clear Temp 4 °C Road Good Date 97 04 30 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 155 Depth 3367 m Progress 0 m Hole Size 215.9 mm Status Circulating (WO DP inspectors) Mud: Wt 1205 kg/m' Visc. 190 s/L W.L. 7.5 cm3 pH 9.5 PV 61 mPa.s YP 30.5 Pa Gels 14/39 Pa Methyl Blue 67 Solids 7.5 % Filter Cake 1.0 mm Salt 80 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM - 28 3 RPM - 27

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No.

m _IS_ 1 RU & RD Size - mm 215.9 m 2 Drill Actual Type FDS m - 3 Reaming S.N. LP9051 m 4 Coring Jets - mm 3 x 20 m 5 Cond. Hole 11.50 Wt. - daN m ° 6 Trips 9.75 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig 0.75 In - m Liner Length 9 Cut Off D.L. 0.50 Metres No. mm mm SPM 10 D'ev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP 0.50 kPa Umin m/min kW 16 DST 8900 1430 105/54 212 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional Recirculated and waited on drillpipe inspection. 21 Handle Tool 0.50

22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Laid down Grade "E" premium drillpipe (old Grade "E"). Pulled out of hole. Rigged out and laid down machine. Picked up drill collars and ran in hole. Serviced ria and checked BOPs. Slipped and cut drilling line. Repaired top drive.Trioped in with bit. Circulated. Serviced ria. Circulated and pressure tested accumulator. Variable bore pipe rams on location, prepared to install and conduct casing inspection log after testing BOPs and accumulator.

Page No. 178

J

aBISSETT RESOIJRCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp

9 °C Road

Good Date 97 05 01 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 156 Depth 3367 m Progress 0 m Hole Size 215.9 mm Status Inspecting DP Mud: Wt 1205 kg/m' Visc. 180 s/L W.L. 8.0 cm3 pH 9.0 PV 65 mPa.s YP 22.5 Pa Gels 14/32 Pa Methyl Blue 67 Solids 7.5 % Filter Cake 1.0 firm mm Salt 60 mg/L Cal. 40 mg/L Desilter Underflow Wt.. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3 6 RPM - 27 3 RPM - 25 (mud tank check)

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU & RD Drill Actual

° Reaming Coring

5 Cond. Hole 6.75 6 Trips 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log

130 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

212 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Inspect DP 16.75 24 25

BITS

SURVEYS No. 16 - m Size - mm 215.9 m Type FDS

m S.N. LF9051 m Jets - mm 3 x 20 m Wt. - daN m r/min Clean m Out - m Out

PUMP In - m _ Trio

Liner Length Metres

No. mm mm Flours

1 140 235 Condition

140 235

DRILLING MUD ADDITIVES USED:

HYDRAULIC 10 sxs Gel PP

Output

AV 2 sxs Caustic kPa

Umin m/min

8900 1430 105/54

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) A umulator Check: Start at 21 500 kPa

Close Hvdril 16 seconds - 16 500 kPa Close Pipe 2 seconds - 13 500 kPa Open HCR 1 second -13 300 kPa

Precharge at 7 400 kPa - Pumo up in 2.24 seconds

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated and waited on pipe inspectors. Tripped out bit 16. Inspected drilloipe full while tripping out. Serviced rig and conducted BOP check. Continued to trio out inspecting drillpipe. Inspecting drillpipe at report time. 140 joints inspected. 79 ioints remaining to be inspected. Culled one joint (thread damage). Expect Grade "S" drillpipe on location by 24:00 hours today.

Held safety meeting and oreiob orientation with rio crew before starting pipe inspection.

ESTIMATED COSTS: DAILY $ 43 524 CUMULATIVE $ 6 373 909 SUPERVISOR R. Genest/M. Kramps

Page No. 179

i

Good 6 °C Road Date 97 05 02 Weather Overcast Temp

Methyl Blue 67.0 Solids 60 mg/L Cal. 40 mg/L 7.5 % Filter Cake 1.0 firm mm Salt Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin kg/m' Centrifuge Overflow Wt. kg/m'

BISSETT RESOURCE CONSULTANTS LTD. 40

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig

Depth 3367 m Progress 0 m Hole Size 215.9 mm Status Circulatina Mud: Wt 1205 kg/m3 Visc. 170 s/L W.L. 8.0 cm3 pH 9.0 PV 65 mPa.s YP 22.5 Pa Gels 14/32 Pa

6 RPM - 27 3 RPM - 25

No. 16 Size - mm 215.9 _, Type FDS S.N. LP9051 Jets - mm _3A/2_ Wt. - daN r/min Out - m In - m Metres Hours Condition

BITS SURVEYS m m m m

m m m °

PUMP Liner Length

No. mm mm 1 140 235 2 140 - 235 ,

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey

130 11 Wireline Log 12 Run Csg/Cmt

Ralex, 1 Day No. 157

TIME DISTRIBUTION Code/Operation Hours

° 1 RU&RD 2 Drill Actual 3 Reaming

° 4 Coring 5 Cond. Hole 2.25 6 Trips 3.25 7 Lubr. Rig 0.50

13 Wait on Cmt

HYDRAULIC 14 Nipple Up 7.00 PP Output AV Power 15 Test BOP 3.75 kPa Umin m/min kW 16 DST 8900 1430 105/54 212 17 Plug Back

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

18 Squeeze Cmt 19 Fishing 20 Directional

DRILLING MUD ADDITIVES USED:

Good Date 97 05 03

ESTIMATED COSTS: DAILY $ 27 709 CUMULATIVE $ 6 430 174 SUPERVISOR R. Genest

BISSETT RESOURCE CONSULTANTS LTD. C11"..

DAILY DRILLING REPORT

Clear Temp 2 °C Road GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 158

Weather Well Depth 3367 m Progress 0 m Hole Size 215.9 mm Status Tripping Mud: Wt 1200 kg/m' Visc. 240 s/L W.L.. 8.0 çm3 pH 8.8 PV 74 mPa.s YP 25 Pa Gels 9/30 Pa Methyl Blue 64 Solids 7.8 % Filter Cake 1.0 firm mm Salt 60 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-19 3RPM-18

BITS SURVEYS No. 16 m Size - mm 215.9 m Type FDS m S.N. LP9051 m Jets - mm 3 x 20 m Wt. - daN Nil m r/min 30 m Out - m 3367 PUMP In - m 3367 Liner Length Metres n/a No. mm mm Hours Condition Clean Out 2 140 235

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

10 500 1430 105/54 17 Plug Back 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool

22 Clean to Btm 4.00 23 Unload DP 1.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated and waited on 127 mm OD drilloioe and handling tools. Unloaded drillpioe and handling tools. Picked up and ran 127 mm OD drillpioe. Tripped in tg 2900 m KB. Broke circulation and circulated bottoms uo. Finished tripping in. Cleaned 2.0 m fill to bottom. Hole is in good shape. Circulated to condition mud and hole. Pumped three markers (flagged - paint - cellophane) for hole size determination. Circulated. Tripped out bit 16. Dumped out seven stands.

Plan to run intermediate casing inspection log followed by resumption of directional drilling operations. String Weight: 97 000 daN Hole Draa - Up: 43 000 daN (oumo on) Hole Draa - Down: 6 - 8 000 daN

Page No. 181

J

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 13.50 6 Trips 5.25 7 Lubr. Rig 0.25 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log

, 130 12 Run Csg/Cmt

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 52 881 CUMULATIVE $ 6 483 055 SUPERVISOR R. Genest/M. Kramps

Weather Rain - Windy Temp 4 °C Road Good Date 97 05 04

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 159

Depth 3367 m Progress 0 m Hole Size 215.9 mm Status Tripping

Mud: Wt 1200 kg/m3 Visc. 240 s/L W.L. 8.0 cm3 pH 8.8 PV 74 mPa.s YP 25 Pa Gels 9/30 Pa

Methyl Blue 64.0 Solids 7.8 % Filter Cake 1.0 firm mm Salt 60 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

6RPM-19 3RPM-18

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 17 m 1 RU & RD

Size - mm 215.9 m 2 Drill Actual

Type ST F-4 m 3 Reaming

S.N. LF8637 m 4 Coring

Jets - mm 2x22/1x18 m 0 5 Cond. Hole

Wt. - daN m 6 Trips 12.25 r/min m 7 Lubr. Rig 0.25 Out - m In PUMP 8 Repair Rig In - m 3367 Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 . 235 11 Wireline Log 9.50 Condition 140 235 _2 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

15 sxs Gel 3 sxs Drisoac PP Output AV Power 15 Test BOP

5 sxs Caustic 2 sxs Cellophane kPa Umin m/min kW 16 DST 3 sxs Lignite 1430 105/54 17 Plug Back 2 sxs Xanvis 18 Squeeze Cmt

19 Fishing GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 2.00

21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out bit 16. Riaaed in loggers. Ran intermediate casino inspection caliper log from 2285 m KB to surface. Preliminary field interpretation shows nominal casing wear. Riaaed out loaaers. Ran bit 17 and directional drilling tools. Orientated MWD. Tripping in at report time.

Plan to resume drilling until drilling liner casino point is reached.

Page No. 182

SURVEYS TIME DISTRIBUTION

Code/Operation Hours 3355 m 17.0 °329.0 1 RU & RD 3364 m 17.5 °328.5 2 Drill Actual 10.75 3373 m 17.4 0328.3 3 Reaming 3383 m 16.5 °329.0 4 Coring

m 5 Cond. Hole 2.25 m 6 Trips 9.50 m 7 Lubr. Rig 0.25

PUMP 8 Repair Rig Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 1.25 1 140 235 125 11 Wireline Log 2 140 235 12 Run Csg/Cmt

BITS No. 17 Size - mm 215.9 Type STC F-4 S.N. LF8637 Jets - mm 2x20/1x18 Wt. - daN 35 - 40 000 r/min Slide Out - m In In - m 3367 Metres 33 Hours 10.75 Condition Running

ESTIMATED COSTS: DAILY $ 38 972 CUMULATIVE $

6 522 027 SUPERVISOR R. Genest/D. Gaboury/ M. Kramps

Page No. 183

J

13 Wait on Cmt DRILLING MUD ADDITIVES USED:

HYDRAULIC 14 Nipple Up

38 sxs Gel 15 sxs Barite PP Output AV Power 15 Test BOP

kPa Umin m/min kW 16 DST 14 000 1380 101/51 322 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in bit 17. Circulated gas cut mud. Drilling. Rotated from 3367 m to 3372 m KB15.0 m). slide from 3372 m to 3377 m KB (5.0). Surveyed and serviced ria. Rotated from 3377 m to 3381 m KB (4.0 m). Slide from 3381 m to 3386 m KB( 5.0 m). Surveyed at 3364 m KB. Rotated from 3386 m to 3390 m KB (4.0 m). Slide from 3390 m to 3396 m KB (6.0 m). Surveyed at 3374 m KB. Rotated from 3396 m to 3400 ni KB (4.0 m). Surveyed at 3383 m KB. Circulated up sample. Dummy trip to intermediate casino shoe. Tripping in at report time.

Pumped and rotated out first ten stands: 150 000 daN (maximum) Pumped and rotated out next six stands: 135 000 daN (maximum) Pulled next 24 stands (Dump off): 125 - 135 000 daN

String Weight: 100 000 daN Hole Drag - Up: 50 000 daN Hole Drag - Down: 4 - 6 000 daN

2 sxs Caustic 2 sxs Drispac 7 sxs Beads

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

cm' pH 9.0 PV 65 mPa.s YP 27.5 Pa Gels 8.5/21 Pa 1.5 firm mm Salt 40 mg/L Cal. 60 mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

Weather

Overcast

Temp 4 Well

GENOIL et al ST. LEONARD NO. 1 Depth 3400 m Progress

33 m Hole Size

Mud: Wt 1205 kg/m3 Visc. 190 s/L W.L. 8.0 Methyl Blue 67.0 Solids

7.7 % Filter Cake

Desilter Underflow Wt.

kg/m' Rate Desilter Overflow Wt.

kg/m' Rate Centrifuge Underflow Wt. kg/m'

°C Road Good

Date 97 05 05 Rig

Ralex, 1

Day No. 160 215.9

mm Status

Tripping

6RPM-18 3RPM-17

Hours

15.25

6.00 0.25 0.50

1.50

aBISSETT RESOURCE CONSULTANTS LTD. DAILY DRILLING REPORT

Weather

Overcast and rain Temp

10 °C Road

Good

Date 97 05 06 Well

GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1 Day No. 161 Depth 3448 m Progress 48 m Hole Size 215.9 mm Status Circulating Mud: Wt 1220 kg/rn3 Visc. 200 s/L W.L. 7.5 cm3 pH 8.8 PV 66 mPa.s YP 24.5 Pa Gels 8/19 Pa Methyl Blue 67.0 _ Solids

7.9 % Filter Cake 1.0 firm mm Salt 40 mg/L Cal. 60 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6 RPM -18 3 RPM - 16 (mud very gassified)

TIME DISTRIBUTION BITS

No. 17 Size - mm 215.9 Type STC F-4 S.N. LF8637 Jets - mm 2x20/1x18 Wt. - daN 35 - 40 000 r/min S ide/30 Out - m In In - m 3367 Metres 81 Hours 26.00 Condition Runnina

DRILLING MUD ADDITIVES USED: 25 sxs Gel 95 sxs Barite PP 2 sxs Caustic 2 sxs Xanvis kPa 5 sxs Drisoac 4 sxs Lignite 15 200

SURVEYS Code/Operation 3393 m 15.8 °329.1 1 RU & RD 3402 m 15.6 °328.9 2 Drill Actual 3412 m 16.2 °329.3 3 Reaming 3421 m 15.7 °329.8 4 Coring 3431 m 15.0 °330.8 5 Cond. Hole

m 6 Trips m 7 Lubr. Rig

PUMP 8 Repair Rig Liner Length 9 Cut Off D.L.

No. mm mm SPM 10 Dev. Survey 140 235 125 11 Wireline Log 140 235 , 12 Run Csg/Cmt

13 Wait on Cmt HYDRAULIC 14 Nipple Up

Output AV Power 15 Test BOP Umin m/min kW 16 DST 1380 101/51 349 17 Plug Back

17 sxs Beads 1 pail Acid suif. 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

20 Directional Gas Detector: 21 Handle Tool Backaround Gas: 2 units 22 Clean to Btm Connection Gas: 4 units 23 Work Pioe 0.50 Fracture Gas: 210 units 24 RSPP: 5250 kPa @ 55 SPM 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripoina in after dummy trip. Cleaned 1.0 m fill. Serviced ria. Slide from 3400 m to 3405 m KB (5.0 m), rotated from 3405 m to 3410 ni KB (5.0 m). Surveyed at 3393 ni KB. Slide from 3410 m to 3412 m KB (2.0 m), rotated from 3412 m to 3419 m KB (7.0 m). Serviced ria. Surveyed at 3402 m KB. Slide from 3429 m to 3433 m KB (4.0 m). rotated from 3433 m to 3438 m KB (4.0 m). Worked tight connection. Surveyed at 3424 m KB. Slide from 3438 m to 3442 m KB. Circulated out ass cut mud. Reduced pump rate to prevent mud from coming over drillina nipple. Started increasina mud density. Rotated from 3442 m to 3448 m KB (6.0 m). Surveyed at 3431 m KB. Circulating sample at report time while increasing mud density.

Plan to dummy trio to intermediate casino shoe.

NOTE: At 3442 m KB. experienced cas cut mud to surface`aas was blowing mud over drilling nipple at reduced puma rate. Ran one circulation through drillina choke while increasina mud density. Resumed drillina. drillina fluid Gas cut. String Weiaht: 102 000 daN Hole Drag - Up: 40 000 daN Hole Drag - Down: 6 - 8 000 daN

ESTIMATED COSTS: DAILY $ 44 866 CUMULATIVE $ 6 566 893 SUPERVISOR

R. Genest/D. Gaboury

Page No. 184

J

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Rainina and snowina Temp -2 °C Road Good Date 97 05 07 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 162 Depth 3495 m Progress 47 m Hole Size 215.9 mm Status Wioer tripping Mud: Wt 1215 kg/m3 Visc. 205 s/L W.L. 7.5 cm' pH 8.5 PV 65 mPa.s YP 30 Pa Gels 11/28 Pa Methyl Blue 67.0_ Solids 7.8 % Filter Cake 1.0 firm mm Salt 60 mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m' 6RPM-24 3RPM-22

TIME DISTRIBUTION SURVEYS Code/Operation Hours

1 RU & RD 2 Drill Actual 16.00 3 Reaming 4 Coring 5 Cond. Hole 3.25 6 Trips 2.75

r/min Slide/55 m 7 Lubr. Rig 0.25 Out - m 3495 PUMP 8 Repair Rig In - m 3367 Liner Length 9 Cut Off D.L. Metres 128 No. mm mm SPM 10 Dev. Survey 1.50 Hours 42.00 1 140 235 125 11 Wireline Log Condition Runnina 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

63 sxs Gel 280 sxs Barite PP Output AV Power 15 Test BOP 4 sxs Caustic 2 sxs Xanvis kPa Umin m/min kW 16 DST 2 sxs Drisoac 14 500 . 1380 101/51 333 17 Plug Back

14 sxs Beads 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Flow Check 0.25 24

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated bottomhole samples while increasing mud density. Serviced ria. Slide from 3448 m to 3452 m KB (4.0 ml, rotated 3452 m to 3457 m KB (5.0 m). Surveyed at 3440 rn KB. Dummy trio three stands. conducted flow check. Serviced ria. Slide from 3457 m to 3461 m KB (4.0 m). rotated from 3461 m to 3467 m KB (6.0 ml. Surveyed at 3450 m KB. Slide from 3467 m to 3471 m KB (4.0 m). rotated from 3471 m to 3477 m KB (6.0 m). Surveyed at 3460 m KB. Slide from 3477 m to 3483 m KB (6.0 m), rotated 3483 m to 3486 m KB (3.0 m). Surveyed at 3469 m KB. Slide from 3486 m to 3490 m KB (4.0 m). Rotated from 3490 m to 3495 m KB. Surveyed at 3478 m KB. Circulated UD bottom hole trip. Dummy tripoina to intermediate casino shoe at report time.

Casino point: 3495 m KB. Plan to conduct two dummy trios or until hole conditions are satisfactory. Will then run 177.8 mm OD drillina liner.

Strina Weiaht: 102 000 daN Hole Draa - Up: 50 000 daN (pump on) Hole Draa - Down: 6 - 8 000 daN RSPP: 5250 kPa at 55 SPM

ESTIMATED COSTS: DAILY $ 94 509* CUMULATIVE $ 6 661 402 SUPERVISOR R. Genest/D. Gaboury *Includes drillpipe inspection of $47 700

Page No. 185

3440 m 14.2 °331.1 3450 m 13.5 °331.9 3460 m 13.0 °331.7 3469 m 12.1 °330.3 3478 m 11.1 0327.9

3495* m 9.1 °325.0

BITS No. 17 Size - mm 215.9 Type STC F-4 S.N. LF8637 Jets - mm 2x20/1x18 Wt. - daN 20 - 30 000

No. 1_ Size - mm 215.9 Type STC F-4 S.N. LF8637 Jets - mm 2x20/1x18 Wt. - daN 20 - 30 000 r/min 30 Out - m 3495 In - m 3367 Metres 128 Hours 42.00 Condition

BITS SURVEYS m m m m m m m

PUMP Liner Length

No. mm mm 1 140 235

140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC

14 sxs Beads PP Output AV

4 sxs Caustic kPa Umin m/min 140sxs Barite 12 500 1380 101/51

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

1

°C Road Good

Date 97 05 08 Rig

Ralex. 1

Day No. 163 0 m Hole Size 215.9 mm Status Tripoina

180 s/L W.L. 7.8 cm3 pH 9.0 PV 65 mPa.s YP 22.5 Pa Gels 8.5/19.8 Pa 7.5 % Filter Cake 1.0 firm mm Salt 60 mg/L Cal. 40 mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

6RPM-19 3RPM-17

Weather Clear Temp

Well GENOIL et al ST. LEONARD NO. 1

Depth 3495 m Progress Mud: Wt 1215 kg/m' Visc. Methyl Blue 64.0 Solids Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4

RU&RD Drill Actual Reaming Coring

5 Cond. Hole 8.00 6 Trips 13.50 7 Lubr. Rig 0.75 8 Repair Rig 9 Cut Off D.L. 1.00

SPM 10 Dev. Survey 125 11 Wireline Log

12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

287 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Flow Check 0.25 24 Check Too 25 Drive 0.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished dummy trip to intermediate casino shoe, Serviced no and function tested pipe rams. Slipped and cut line. Tripped back to bottom. Broke cirçjlation and washed 20 m to bottom. Approximately 2.0 m fill. Circulated to condition mud and hole. Dummy trio jo intermediate casino shoe. Rotated out first 15 stands at 20 to 30 000 daN hole draa. Pulled bit to intermediate casino shoe. Serviced ria and ran flow check. Tripped bit 17 back to bottom. hole drag 8 000 _daN maximum. Inspected too drive and running near. Washed to bottom. no fill. Circulated to condition mud and hole. Serviced rig and conducted flow check. Tripped out bit 17. rotated out first 15 stands. Strapped drill string on trio out. Tripping out at report time.

NOTE: Plan to trio out, pick uP and run 177.&mm OD drillina liner.

String Weight: 102 000 daN Hole Draa - Up: 33 - 38 000 daN (first 15 stands. rotated oioe)

Up: 25 - 30 000 daN (Dulling only to casino shoe) Uo: 43 - 48 000 daN (stands 18. 19. 20. maximum only)

RSPP: 7 600 kPa at 90 SPM

ESTIMATED COSTS: DAILY $

53 843 CUMULATIVE $ 6 715 248 SUPERVISOR R. Genest/D. Gaboury

Page No. 186

I

C BISSETT RESOURCE CONSULTANTS LTD. DAILY DRILLING REPORT

Weather

Clear

Temp 4 °C Road

Good

Date 97 05 09 Well

GENOIL et al ST. LEONARD NO. 1 Rig

Rolex. 1

Day No. 164 Depth 3495 m Progress

0 m Hole Size

215.9

mm Status

Trim:Ana Mud: Wt 1215 kg/m' Visc. 180 s/L W.L. 7.8 Methyl Blue 64.0 Solids Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt.

kg/m' Rate Centrifuge Underflow Wt. kg/m'

cm3 pH 9.0 PV 65 mPa.s YP 22.5 Pa Gels 8.5/19 Pa 60 mg/L Cal. 40 mg/L

Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Overflow Wt. kg/m'

7.5 % Filter Cake 1.0 firm mm Salt

6RPM-19 3RPM-17

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5

RU & RD Drill Actual Reaming Coring Cond. Hole

6 Trips 12.75 7 Lubr. Rig 8 Repair Rig 0.25 9 Cut Off D.L.

SPM 10 Dev. Survey 100 11 Wireline Log

12 Run Csg/Cmt 8.00 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

12 17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 1.00 22 Clean to Btm 23 Circ. Casino 2.00 24 25

BITS

SURVEYS No. 17

m Size - mm 215.9

m Type STC F

m

S.N. LF8637

m Jets - mm 2x20/1x18

m

Wt. - daN 20 - 30 000

m r/min 3_ m Out - m 3495

PUMP In - m 3367

Liner Length

Metres 128

No. mm mm Hours 42.00

1 140 235

Condition 5-5-1

140 235

DRILLING MUD ADDITIVES USED: HYDRAULIC 9 sxs Beads PP Output AV

20 sxs Barite kPa Umin m/min 7 000 1100 75

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished triopina out bit 17. Strapped drill string. +0.64 m difference, no correction. Laid down directional drillina tools. Riaaed to run casino. Held safety meetina. Tallied, drifted. picked uo and ran 177.8 mm OD &illina liner and liner hanaer. Sorted drilloipe to achieve proper and safe stick-up. Tripped in with liner, broke circulation every ten stands. Tripped in to2360 m KB. Circulated bottoms up. Ran 11 stands, circulated out aas-cut mud for 45 minutes. Tripoina in liner at report time.

Casino hook load: 48 000 daN

ESTIMATED COSTS: DAILY $

120 563 CUMULATIVE $ 6 835 811 SUPERVISOR R. Genest/D. Gaboury

Page No. 187

Depth 3495 m Progress 0 m Hole Size 215.9 mm Status WOC

ESTIMATED COSTS: DAILY $ 40 781 CUMULATIVE $ 6 876 592 SUPERVISOR R. Genest/D. Gaboury

C:ISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Overcast Temp GENOIL et al ST. LEONARD NO. 1

°C Road Good Ralex, 1

Weather Well Rig

6RPM-5 3RPM-3

TIME DISTRIBUTION BITS

No.

SURVEYS m

Code/Operation Hours 1 RU & RD

Size - mm m 2 Drill Actual Type m 3 Reaming

S.N. m 4 Coring Jets - mm m 5 Cond. Hole 1.00 Wt. - daN m 6 Trips 1.50 r/min m 7 Lubr. Rig 0.25 Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 125 - 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt 8.50

13 Wait on Cmt 5.25 DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 8 200 1400 101/51 191 17 Plug Back

18 Squeeze Cmt 0.25 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Circ. Casino 6.50 24 Safety Mta 0.25 25 Set Hanoer 0.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran 96 ioints 177.8 mm OD (1260.04 m) 43.2 ka/m API GDE L80 R3 8RD LT&C new casino and 1 - 244.5 mm x 177.8 mm liner hanger with tie-back sleeve. Landed drillina liner at 3494.00 m KB. top tie-back sleeve at 2233.96 m KB. NOTE: Circulated and worked liner oast tie soot beainnina at *3170.0 m KB. Circulated to condition mud and hole. Riaaed in cementers. Pressure tested surface eauipment to 35 000 kPa. Held safety meetina. Spearheaded with 0.5 m' fresh water + 3.0 m' mud push at 1300 ka/m3 density. Cemented usina 46.5 tonnes Class "G° + 0.5% D-81 + 0.5% D-65 + 0.7% D-160FL + 0.61% anti-foam at 1900 ka/m3 slurry density. Bumped plus with 22 700 kPa. Floats held okay. Plua down at 22:05. 97 05 09. Pressured uo on liner to 4 000 kPa. set and released liner hanaer. Pulled 17 stands (±487 m) and landed drill string at 1746.96 m KB. Circulated 4 bottoms up at 2.6 m'/min. Closed pipe rams and pressured up drilloipe to 3 500 kPa. Pressure bled off to 2 800 kPa. Pressured up to 3 500 kPa. Pressure bled off to 2 800 kPa and remained static. Allowed well to remain shut in undisturbed with 2 800 kPa SIDPP. WOC at report time.

Page No. 188

Day No. 165 Date 97 05 10 5

11.5 Pa Gels 3/13 Pa 60 mg/L Cal. 40 mg/L

kg/m' Rate Umin kg/m' Rate Umin

kg/m'

Mud: Wt 1200 kg/.m' Visc. Methyl Blue 50 Solids Desilter Underflow Wt. Desilter Overflow Wt._ Centrifuge Underflow Wt.

95 s/L W.L. 95 cm3 pH 8.5 PV 42 mPa.s YP 7.7 % Filter Cake 1.5 mm Salt

kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt.

kg/m' Centrifuge Overflow Wt.

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Overcast Temp 5 °C Road Good Date 97 05 11

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 166

Depth 3495 m Progress 0 m Hole Size 155 mm Status Rigged Up Floor Mud: Wt 1200 kg/m' Visc. 95 s/L W.L. 95 cm3 pH 8.5 PV 42 mPa.s YP 11.5 Pa Gels 3/13 Pa

Methyl Blue_ 50 Solids 7.7 % Filter Cake 1.5 mm Salt 60 mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m3 Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

6RPM-5 3RPM-3

TIME DISTRIBUTION BITS SURVEYS Code/Operation Hours

No. 16RR 18 m • 1 RU & RD

Size - mm 216 155 m • 2 Drill Actual Type FDS WRB J3XP m • 3 Reaming S.N. LF9051 N34ED m • 4 Coring Jets - mm 3 x 20 m ° 5 Cond. Hole 1.50 Wt. - daN m • 6 Trips 12.75 r/min m • 7 Lubr. Rig 0.25 Out - m Clean PUMP 8 Repair Rig In - m Out Liner Length 9 Cut Off D.L. 1.0Q Metres Trip No. mm mm SPM 10 Dev. Survey Hours 1 140 235 115 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt 2.75 DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP 1.75 kPa Umin m/min kW 16 DST 7500 1265 97147 _1 8 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 1.50 22 Clean to Btm 23 Clean Tank 0.50 24 Lay Down DC 2.00

25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Bled off surface pressure. Tripped out and laid down liner running tools. Ran bit 16RR laid down 114.3 mm OD Grade 0E" drillpipe. Slipped and cut line. Finished tripping in. Strapped drill string. Tagged top of liner at 2233.59 m KB. No cement on top of liner. Cleaned suction tank. Displaced casino to fresh water while salvaging drilling fluid in surface tanks. Closed pipe rams and pressure tested casing to 21 000 kPa for 15 minutes. Pressure bled off to 19 600 kPa. Checked surface equipment. Pressure tested casing to 25 000 kPa for 30 minutes. pressure slowly bled off to 21 200 kPa in 30 minutes. Checked surface equipment for leaks, Bled off pressure. Tripped out. Laid down 114.3 mm OD hevi-wate and 171 mm OD drill collars. Rigging up at report time to pick uo 121 mm OD drill collars and 89 mm OD drillpipe.

ESTIMATED COSTS: DAILY $ 124 629 CUMULATIVE $ 7 001 221 SUPERVISOR R. Genest/D. Gaboury

Page No. 189

J

ESTIMATED COSTS: DAILY $ 27 875 CUMULATIVE $ 7 029 096 SUPERVISOR R. Genest/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 2 °C Road Good Date 97 05 12 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 167

Depth 3495 m Progress 0 m Hole Size 155 mm Status Waiting on Packer Assembly Mud: Wt 1000 kg/m' Visc. 28 s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 18 m 1 RU & RD Size - mm 155 m 0 2 Drill Actual Type HC J3XP m 3 Reaming S.N. N34ED m 4 Coring Jets - mm 3 x 14.3 m 5 Cond. Hole 0.50 Wt. - daN m 6 Trips 15.00 r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 _ 120 11 Wireline Log Condition 140 235 _2 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP 2.50 kPa Umin m/min kW 16 DST

12 000 1 320 _98/48 264 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Drill Out 4.75 24 WO Packer 1.25 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished rigging uo working floor. Ran bit 18. picked uo and ran 120 mm OD drill collars. 89 mm OD HWDP and 89 mm OD drilloipe. Taoged cement at 3441 m KB. Drilled out cement to ball catcher at 3457 m KB. Drilled up ball catcher and drilled out hard cement to float collar at 3480 m KB. Circulated bottoms up. Closed oioe rams and pressure tested intermediate casing and drilling liner to 23 300 kPa for 30 minutes. Pressure slowly bled off to 17 500 kPa in 30 minutes. Released pressure. Circulating and waiting on liner packer assembly.

NOTE: Did not find any cement on too of liner tie back stem. Pressure test indicates lack of pressure integrity on the back side of the 177.8 mm OD drilling liner. Seal assembly, liner packer and tie-back sleeve left Nisku at ±09:30. 97 05 11 on a hot shot truck with two drivers.

Page No. 190

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Rig 8 °C Road Weather

Well

Clear Temp GENOIL et al ST. LEONARD NO. 1

Good Date 97 05 13 Ralex. 1 Day No. 168

27 875 CUMULATIVE $ 7 056 971 SUPERVISOR R. Gen@SUD. Gaboury ESTIMATED COSTS: DAILY $

0 m Hole Size 155 mm Status

30 s/L W.L. cm3 pH 9.0 PV mPa.s YP Pa Gels Pa

% Filter Cake mm Salt mg/L Cal. mg/L

kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

kg/m' Centrifuge Overflow Wt. kg/m'

Depth 3495 m Progress Mud: Wt 1020 kg/m' Visc. Methyl Blue Solids

Desilter Underflow Wt.

Centrifuge Underflow Wt.

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m ° 1 RU&RD

Size - mm 155 m 2 Drill Actual

Type HC J3XP m 3 Reaming

S.N. N34ED m 4 Coring

Jets - mm 3 x 14.3 m 5 Cond. Hole

Wt. - daN m 6 Trips

r/min m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey

Hours 1 140 235 55 11 Wireline Log

Condition 140 235, 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 Pails Acid PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 3 600 600 32 36 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 WO Packer 24.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated and waited on liner packer assembly. Changed out stand pipe hammer union and repaired hole fill valve on the stand pipe. Pressure tested stand pipe to 21 000 kPa. okay. Commenced circulating through surface sump, adiusted pH of sump fluid to allowable levels by adding acid. Circulating atreport time.

Page No. 191

Desilter Overflow Wt.

Waiting on Packer Assembly

Clear Temp Weather Good 7 °C Road Date 97 05 14

R. Genest/D. Gaboury ESTIMATED COSTS: DAILY $ 39 755 CUMULATIVE $ 7 096 726 SUPERVISOR

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1

Depth 3495 m Progress 0 m Hole Size 155 mm Status Circulating

Mud: Wt 1020 kg/m' Visc. 30 s/L W.L. cm' pH

Methyl Blue Solids % Filter Cake

Desilter Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m'

8.0 PV mPa.s YP Pa Gels Pa

mm Salt mg/L Cal. mg/L

Desander Underflow Wt. kg/m' Rate Umin

Desander Overflow Wt. kg/m' Rate Umin Centrifuge Overflow Wt. kg/m'

No. 18

BITS SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 155 m 2 Drill Actual Type HC J3X9 m 3 Reaming

S.N. N34ED m 4 Coring

Jets - mm 3 x 14.3 m ° 5 Cond. Hole 13.00

Wt. - daN m 6 Trips 9.25

r/min m 7 Lubr. Rig 0.25

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey

Hours 1 140 235 120 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 2 00 1 320 71 5.5 17 Plug Back

18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 1.25 22 Clean to Btm 23 Set Packer 0.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated through sump while waiting on drilling liner packer assembly. Serviced rip, checked brakes, pins and crown saver. Circulated. Tripped out bit 18. Made up and ran 244.5 mm x 177.8 mm seal assembly, packer and tie-back sleeve. Circulated bottoms up. Observed pas cut water on bottoms up. Located seal assembly in top of tie-back sleeve on too of drilling liner. Set packer and pulled off setting tools. Circulating at report time.

Page No. 192

Day No. 169

ESTIMATED COSTS: DAILY $ 67 491 CUMULATIVE $ 7 164 217 SUPERVISOR R. Genest/D. Gaboury

4 BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 5 °C Road Good Date 97 05 15

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 170

Depth 3495 m Progress 4 m Hole Size 155 mm Status Tripping

Mud: Wt 1020 kg/m' Visc. 30 s/L W.L. cm3 pH 8.0 PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 18 19 m 1 RU & RD

Size - mm 155 155 m 2 Drill Actual - Type HC J3X9 ST MF156 (4-4-7) m 3 Reaming

S.N. N34ED LM 1396 m Coring 4

Jets - mm 3 x 14.3 Open m 5 Cond. Hole 2.00

Wt. - daN 2-4000 m 6 Trips 17.75

r/min 40 - 60 m 7 Lubr. Rig 0.25

Out - m 3499 In PUMP 8 Repair Rig

In - m 3495 3 499 Liner Length 9 Cut Off D.L.

Metres 4 No. mm mm SPM 10 Dev. Survey

Hours Drill Out 1 140 235 100 11 Wireline Log

Condition 3-1-I Run 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

10 500 1 100 59 192 17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 2.00 22 Clean to Btm 23 Pressure Test 1.75 24 Drill Out 2.00 25 Set Packer 0.25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pressure tested 177.8 mm OD drilling liner to 21 000 kPa for 15 minutes, okay. Pulled out of drilling liner and circulated bottoms up, Pulled off drilling liner and pressure tested 244.5 mm OD intermediate casing and liner packer to 21 000 kPa for 30 minutes. okay. Trippg. out and laid down setting toole. Ran bit 18 and drill collars. Serviced rig and picked up three 89 mm OD HWDP. Finished tripping_ in. Broke circulation and drilled out cement. Drilled to 3499 m KB. Circulated bottoms up. Ran formation integrity test. no leak-off observed at 15.8 kPa/m pressure gradient at drilling liner shoe. Tripped out bit 18. Ran bit 19 and bottomhole assembly. Tripping in at report time to begin drying casing.

Page No. 193

J

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 32 315 CUMULATIVE $ 7 196 532 SUPERVISOR R. Genest/D. Gaboury

Overcast Temp 5 °C Road Date 97 05 16 Weather Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 171 Depth 3499 m Progress 0 m Hole Size 155 mm Status Blowing Casing to Dry Mud: Wt kg/'m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS No. 19 m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU&RD Size - mm 155 m Drill Actual Type ST MF156 m Reaming S.N. LM 1396 m ° Coring Jets - mm Open m ° Cond. Hole Wt. - daN m Trips 0.50 r/min m ° Lubr. Rig 0.50 Out - m In PUMP

SPM

Repair Rig In - m 3 499 Liner Length Cut Off D.L. Metres No. mm mm Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional NOTE: Well began flowing natural gas as water was unloaded. Volume: TSTM 21 Handle Tool

22 Clean to Btm 23 Blow Hole 21.50 24 Repair Comp. 1.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in bit 1 to 600 m KB. Installed rotating head and rigged in blouie line. Rigged in air equipment. Unloaded casing with air. Continued tripping in while unloading casino every 20 stands. Shut down to repair crosshead shaft on air compressor. Reached total depth at 23:00, 97 03 15. Blew casino with air to dry. Air circulation rate: 71.8 m3/min at 2240 kPa.

Page No. 194

J

Good

Cli BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

1

Weather Overcast Temp 6 °C Road Good Date 97 05 17 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 172

Depth 3532 m Progress 33 m Hole Size 155 mm Status Waiting on compressor Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 19 m 1 RU & RD Size - mm 155 m 2 Drill Actual 4.50 Type MF156 m 3 Reaming S.N. LM 1396 m Coring 4 Jets - mm Open m 5 Cond. Hole Wt. - daN 2 - 3 000 m 6 Trips 8.50 r/min 65 m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 3 499 Liner Length 9 Cut Off D.L. Metres 33 No. mm mm SPM 10 Dev. Survey Hours 4.50 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Blow Hole 6.00 24 WO Booster 4.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to blow casing to unload moisture. Slowly drilled ahead. well began making dust. Drilled to 3532 m KB at 7.4 m/h ROP. Booster compressor failed. Unable to circulate. Pulled bit 19 up into the 244.5 mm OD casing. Tore out booster compressor. Serviced ria. Tripped out to check bottomhole assembly. okay. Found small amountof cuttings adhering to tool ioints and bottomhole assembly. Waiting on booster compressor to arrive from Nisku.

String Weight: 109 000 daN Hole Draa (177.8 mm OD casing): 28 - 32 000 daN Rotary Torque: 8 550 to 14 250 N•m at 60 RPM Air Circulation Rate: 68.0 m'/min at 2 240 kPa (temp: 135°C)

ESTIMATED COSTS: DAILY $

32 917 CUMULATIVE $ 7 229 449 SUPERVISOR R. GenesUD. Gaboury

Page No. 195

Weather Well

Cloudy Temp

GENOIL et al ST. LEONARD NO. 1

8 °C Road Good Rig

Date 97 05 18 Day No. 173 Ralex. 1

Depth 3532 m Progress

Mud: Wt Air kg/m' Visc.

Methyl Blue Solids Desilter Underflow Wt, Desilter Overflow Wt. Centrifuge Underfiow Wt.

Waiting on compressor

ake mm Salt mg/L Cal. mg/L Umin Desander Underfiow Wt. kg/m' Rate Umin

Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Overflow Wt. kg/m'

0 m Hole Size 155 mm Status mPa.s YP Pa Gels Pa s/L W.L. cm3 pH 8.0 PV

% Filter C kg/m' Rate kg/m' Rate

kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 19 m 1 RU & RD

Size - mm 155 m 2 Drill Actual

Type MF156 m 3 Reaming

S.N. LM 1396 m ° 4 Coring

Jets - mm Open m 5 Cond. Hole

Wt. - daN m 6 Trips 6.25

r/min m 7 Lubr. Rig 0.50

Out - m PUMP 8 Repair Rig

In - m 3499 Liner Length 9 Cut Off D.L. 1.00

Metres No. mm mm SPM 10 Dev. Survey

Hours 1 140 235 11 Wireline Log

Condition 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 WO Booster 16.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Checked bottomhole assembly. Ran bit 19 and drill collars, Slipped and cut line. Finished tripping in to 2127 m KB. Serviced rig. WO booster compressor to arrive from Nisku,

Observed GTS at 21:00. 97 02 18. Lazy 1.0 m flare. TSTM.

Pumped sump 24 hours, ±0.6 m freeboard, pH = 8.0

Security personnel stopped eight people trvina to access location the past 24 hours. A lot of attention is being aiven to this operation by_ mostly investors. In light of this number, will maintain security wa` . during down period.

ESTIMATED COSTS: DAILY $ 27 894 CUMULATIVE $ 7 257 343 SUPERVISOR R. Genest/D. Gaboury

Page No. 196

CII BISSETT RESOURCE CONSULTANTS LTD. 1

DAILY DRILLING REPORT

Good 8 °C Road Weather Date 97 05 19 Cloudy Temp LEONARD NO. 1 GENOIL et al ST. Rig Ralex. 1 Day No. 174

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well Depth 3532 m Progress Mud: Wt kg/m' Visc. Methyl Blue Solids Desilter Underflow Wt. Desilter Overflow Wt. Centrifuge Underflow Wt.

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 19 m 1 RU&RD Size - mm 155 m 2 Drill Actual Type MF156 m 3 Reaming S.N. LM 1396 m 4 Coring Jets - mm Open m 5 Cond. Hole Wt. - daN 2-3000 m 6 Trips r/min m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 3499 Liner Length 9 Cut Off D.L. Metres 33 No. mm mm SPM 10 Dev. Survey Hours 4.50 1 140 235 , 11 Wireline Log Condition 2 235 _LIIL 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 WO Booster 23.50 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waited on booster compressor to arrive from Nisku. Held BOP drill with crews. Serviced ria. Well continued to flow annular gas with a lazy 1.0 to 1.5 m flare. TSTM.

ESTIMATED COSTS: DAILY $ CUMULATIVE $ 7 292 460 SUPERVISOR R. Genest/D. Gaboury

Page No. 197

J

0 m Hole Size 155 mm Status Waiting on compressor PV mPa.s YP Pa Gels mm Salt mg/L Cal.

Umin Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate

Centrifuge Overflow Wt. kg/m'

35 117

s/L W.L. cm' pH % Filter Cake

Pa mg/L Umin Umin

kg/m' Rate kg/m' Rate

kg/m'

ESTIMATED COSTS: DAILY $ 28 744 CUMULATIVE $ 7 321 204 SUPERVISOR R. Genest/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 12 °C Road Good Date 97 05 20 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 175 Depth 3532 m Progress 0 m Hole Size 155 mm Status Waiting on mechanic Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m3

No. 19 BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD

Size - mm 155 m 2 Drill Actual Type MF156 m 3 Reaming S.N. LM 1396 m 4 Coring Jets - mm Open m 5 Cond. Hole Wt. - daN 2 - 3 000 m ° 6 Trips 1.00 r/min _65 m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 3 499 Liner Length 9 Cut Off D.L. Metres 33 No. mm mm SPM 10 Dev. Survey Hours 4.50 1 140 235 11 Wireline Log Condition Run 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 WO Booster 9.75 24 WO Mechanic 10.75 25 Unload Booster 2.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waited on booster compressor. Ran bit 19 in to tight spot at 2897 m KB. Serviced ria. Waiting on booster compressor. Booster arrived at 17:00. 97 05 19. Unloaded booster and tied into circulating system. Started compressors. Developed severe lubricating on leak on drive shaft aear on primary compressor. Shut down. Contacted Canadian Air Drilling Services. Mechanic and parts are being flown to location. (ETA. wellsite. 112:00. W 05 20.) Shut down while waiting on mechanic.

Well continues to flow lazy 1.0 to 1.5 m flare.

Page No. 198

ESTIMATED COSTS: DAILY $ 27 084 CUMULATIVE $ 7 348 288 SUPERVISOR R. Genest/D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 5 °C Road Good Date 97 05 21

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 176

Depth 3532 m Progress 0 m Hole Size 155 mm Status Waiting on repairs

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 19 m 1 RU & RD

Size - mm 155 m 2 Drill Actual

Type MF156 m 3 Reaming

S.N. LM 1396 m Coring 4

Jets - mm Open m 5 Cond. Hole

Wt. - daN 2-3000 m 6 Trips r/min 65 m 7 Lubr. Rig 0.50

Out - m In PUMP 8 Repair Rig

In - m 3499 Liner Length - 9 Cut Off D.L.

Metres 33 No. mm mm SPM 10 Dev. Survey Hours 4.50 1 140 235 11 Wireline Log

Condition 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Repairs 24 Cdn Air 23.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waited on mechanic to arrive from Nisku. Serviced rig. Replaced main shaft on seal in low pressure compressor. Unable to start low pressure compressor driver. Appears fuel infection system is not working. Began looking and telephoning for replacement iniector pump. Found same in Quebec City. Canadian Air Drilling mechanic travelled to Quebec City and picked up replacement iniector Dump. Returned to location. Installed replacement iniector pump. Seals leaking on replacement pump. attempted to tighten same, unsuccessful. Tore out replacement infector pump. Travelled to Quebec City to exchange iniector pump. Estimated mechanic will return from Quebec City. install new infector pump and be ready to attemotto start driver by 12:00. 97 05 21.

Well continues to flow natural pas, 1.0 to 1.5 m lazy flare. TSTM.

Page No. 199

13 Wait on Cmt

HYDRAULIC 14 Nipple Up Output AV Power 15 Test BOP Umin m/min kW 16 DST

17 Plug Back

aBISSETT RESOURCE CONSULTANTS LTD. DAILY DRILLING REPORT

Weather Raining Temp 4 °C Road Good

Date 97 05 22 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex. 1

Day No. 177 Depth 3532 m Progress

0 m Hole Size 155 mm Status Tripping

Mud: Wt Air kg/m' Visc.

s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids

Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m'

Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 0.50 6 Trips 1.00 7 Lubr. Rig 0.50 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt

BITS

SURVEYS No. 1- m Size - mm 155 m Type ST MF156 m

S.N. LM 1396 m Jets - mm Open m

Wt. - daN 2-3000 m r/min 65 m Out - m In

PUMP

In - m 3499

Liner Length

Metres 33

No. mm mm Hours 4.50

140 235 Condition

140 235

DRILLING MUD ADDITIVES USED: PP kPa

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

23 WO Cdn Air 22.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waiting on mechanic. Installed iniector pump, driver refused to start. Tore out air in the system, found two small pieces and a few fine pieces of raa that had been pulled through the turbochargers. They had been there for sometime. Nothing in system to stop driver from running. Found two leaking valves. Pulled heads off driver and sent to Quebec City for repair. Ordered replacement low pressure compressor from Quebec City. ETA on location was supoosed to be 19:00. did not show up until 02:30. Spotted and tied compressor Into circulating system. Tripping in at report time to begin drilling.

Shut in well to measure flow. SICP built to 35 kPa in 9.50 hours. Unable to measure flow. TSTM. Number of people who showed up at security gate during the past 24 hours: 6 (The security people are doing a good lob.) Took number gas sample while well was shut in. Sent same to the University at Trois Rivieres for analysis

Approximately 130 hours down time due to compressor/booster failure. Hole drag at liner shoe: 8 - 10 000 daN up

ESTIMATED COSTS: DAILY $ 50 357 CUMULATIVE $ 7 398 645 SUPERVISOR

R. Genest/D. Gaboury

Page No. 200

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm

J

ESTIMATED COSTS: DAILY $ 32 906 CUMULATIVE $ 7 431 551 SUPERVISOR R. Genest/D. Gaboury

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 7 °C Road Good Date 97 05 23

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 178

Depth 3549 m Progress 17 m Hole Size 155 mm Status Surveying

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 19 m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD Size - mm 155 m Drill Actual 4.00 Type ST MF56 m Reaming S.N. LM 1396 m 0 Coring Jets - mm Open m ° Cond. Hole

Wt. - daN 2 - 3 000 m Trips 10.25 r/min 65 m Lubr. Rig 0.50 Out - m In PUMP

SPM

Repair Rig In - m 3 499 Liner Length Cut Off D.L. Metres No. mm mm Dev. Survey 9.25 Hours 1 140 235 11 Wireline Log

Condition 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Continued to trip in bit 19, rotated and blew hole while tripping in. Recovered string float every third stand. Serviced ria. Well dry after reaching bottom. dusting. Drilled to 3539 m KB, well making good dust. Ran directional surveys at_3530 m KB. Ran five surveys, three misruns and two with the following results: 1.25°. S5OW (230°) and +20.0°, no direction. Serviced rig. Drilled to 3549 m KB, well making good dust. Ran three deviation surveys: +20.9°, N58E (58°). misrun and +20.0°, S2E (178°). Contacted Sperry-Sun to discuss operation of single shot directional tools. Directional man with replacement single shot equipment is travelling to location from North Bay, Ontario. Plan to run directional survey at ±3505 m KB (deviation is known at this death) before proceeding.

Number of people who showed up at the security gate in the past 24 hours: 7

Air Circulation Rate: 58.0 m3/min at 2345 kPa ROP When Drilling: ±6.0 m/h

Page No. 201

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Good Date 97 05 24 Weather Cloudy Temp 8 °C Road

ESTIMATED COSTS: DAILY $ 32 390 CUMULATIVE $ 7 463 941 SUPERVISOR R. Genest/D. Gaboury

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 179

Depth 3549 m Progress 0 m Hole Size 155 mm Status Surveying

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 19 3521 m 20+ °S2E

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9

10

RU & RD

Size - mm 155 3503 m 20+ °S60E Drill Actual

Type STC MF156 3503 m 20+ °S32E Reaming

S.N. LM 1396 3503 m Misrun Coring

Jets - mm Open 3503 m Misrun Cond. Hole

Wt. - daN 2 - 3 000 3478 m Misrun ° Trips 0.25

r/min 65 m ° Lubr. Rig 0.25

Out - m In PUMP

SPM

Repair Rig

In - m 3 499 Liner Length Cut Off D.L.

Metres 5_ No. mm mm Dev. Survey 23.50

Hours 8.50 1 140 235 11 Wireline Log

Condition Run 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST 2344 58 m'/ 17 Plug Back

min 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pulled drill string to 3508 m KB. Ran two single shot directional surveys, both misruns. Contacted Sperry-Sun, reviewed and discussed the operation of the survey eauuipment. Sent single shotdirectional survey equipment to Montreal from North Bay. Sperry-Sun directional man began from North Bay to location with inclination only (IOU surveyeauipment. Picked up survey equipment at Montreal and travelled to the location. Ran directional survey at 3521 m KB and two surveys at 3503 m KB. All surveys indicated wellbore drift in excess of 20° inclination and would not repeat on azimuth. Serviced rig. Ran two directional surveys with 90° clock, both surveys came out blank. Pulled and positioned Totco ring at 3478 m KB. (Last MWD survey depth when drilling 216 mm hole.) Ran 90° clock with IOL survey equipment. Survey came out blank (no logical explanation for this occupance.) Running IOL equipment with 20° clock at report time. Held BOP drill and safety meetings with crews. Air Circulation Rate: 58.0 m'/min at 2344 kPa Held tight hole status meeting with all rig site personnel, M, Durette chaired the meeting. Number of people who showed up at the security nate in the past 24 hours: 7 Preliminary gas analysis indicated: ±98% methane Hole Draa: 8 - 10 000 daN up 6 - 8 000 daN down

Page No. 202

DAILY DRILLING REPORT C BISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 33 607 CUMULATIVE $ 7 497 548 SUPERVISOR R. Genest/D. Gaboury

Weather Rainina Temp 10 °C Road Good Date 97 05 25

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 180

Depth 3558 m Progress 9 m Hole Size 155 mm Status Survevina

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 19 3484 m 10 1/2 ° 1 RU & RD Size - mm 155 3513 m 10 1/8 2 Drill Actual 1.50 Type STC MF156 3542 m 10 /18 3 Reaming S.N. LM 1396 m 4 Coring Jets - mm Open m ° 5 Cond. Hole 1.75 Wt. - daN 2 - 3 000 m ° 6 Trips 2.00 r/min 65Z_ m 7 Lubr. Rig 0.50 Out - m In PUMP 8 Repair Rig In - m 3 499 Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey 18.25 Hours 1 140 235 _ 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran IOL (inclination only) equipment to obtain wellbore angle. Ran one survey with 20° compass, offscale (+20° inclination), two with 90° compass - both misruns, no picture. Ran a survey using 90° compass and 20° compass at ±100 m KB - same results as above. Ran 6° compass at #400 m KB. Obtained good survey. 4.50°. Ran 6° compass and surveyed at 3521 m KB, offscale. Ran 6° compass and surveyed at 3548 m KB. offscale. NOTE: ordered Totco survey equipment from Nisku, sent viaAir Freight to Montreal. Sperry-Sun technician on-site is uncertain why the survey instruments are not functioning properly. Broke circulation and drilled to 3558 m KB, Blew well and pulled bit 19 into drilling liner. Ran check on 6° compass in d9ahouse at 45° angle, same results as downhole - offscale. Waiting on Totco equipment. Riaaed up Totco equipment and ran drift surveys at 3484 m, 3513 m and 3542 m KB. Rigged out survey equipment at report time. Plan to begin drilling operations.

Hole Draa: 20 000 daN up Hole Drag: 10 000 daN down String Weight: 109 000 daN Torque: 7 00 to 14 250 N•m at 60 RPM

Page No. 203

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DAILY DRILLING REPORT

BISSETT RESOURCE CONSULTANTS LTD. irr

ESTIMATED COSTS: DAILY $ 35 567 CUMULATIVE $ 7 533 115 SUPERVISOR C. Abel, R. Genest

Raining Temp 7 °C Road GENOIL et al ST. LEONARD NO. 1

Date 97 05 26 Rig Ralex, 1 Day No. 181

Weather Well

Good

Depth 3606 m Progress 48 m Hole Size 155 mm Status Tripping

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 19 3560 m 10 3/4 1 RU & RD Size - mm 155 3569 m 10 1/8 2 Drill Actual 7.00

Type STC MF156 3579 m 10 ° 3 Reaming 0.50

S.N. LM 1396 3589 m 10 4 Coring

Jets - mm Open m 5 Cond. Hole 1.00

Wt. - daN 2 - 3 000 m 6 Trips 8.00 r/min 65 m 7 Lubr. Rig 0.50

Out - m 3 606 PUMP 8 Repair Rig In - m 3 499 Liner Length 9 Cut Off D.L. Metres 107 No. mm mm SPM 10 Dev. Survey 4.75 Hours 17 1 140 235 11 Wireline Log Condition 2-4-I 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 2.25 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Broke circulation, blew hole and cleaned to bottom. Drilling, hole making good dust. Drilled to 3586 m KB. Surveyed and serviced rig. Drilling. Drilled to 3606 m KB. Hole making good dust. Blew hole, Tripped out rotary drilling assembly. Preparing to run bit 2 and air hammer at report time.

Average Air Circulation Rate/Pressure: 58.0 m'/min at 2344 kPa

Page No. 204

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp -2 °C Road Good Date 97 05 27

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 182

Depth 3606 m Progress 0 m Hole Size 155 mm Status Tripping

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

No. 20

BITS SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 155 m 2 Drill Actual Type H45R4S2 m 3 Reaming

S.N. KJ7083 m 4 Coring

Jets - mm m ° 5 Cond. Hole

Wt. - daN m 6 Trips 17.00 r/min m 7 Lubr. Rig 0.50 Out - m PUMP 8 Repair Rig In - m 3 606 Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey 0.50 Hours 1 140 235 11 Wireline Log Condition 2 140 235 , 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 4.00 22 Clean to Btm 23 Respool Line 2.00 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Ran bit 20 and air hammer drilling assembly. Ran Sperry-Sun 45.0 mm OD survey barrel to check for clearance in bottomhole assembly. Crew ran barrel too fast, hit bottom hard and had backlash on the wireline drum. Had to respool the survey line on spool. Tripped out bit 20. Checked bottomhole assembly and retoraued bit. Replaced Totco ring. Ran bit 2 and air hammer drilling assembly. Picked up remaining 89 mm OD drillpipe on trip in. Ran in to 2812 m KB. Ran Sperry-Sun 45 mm OD survey barrel with ESI tool to check Tool performance. When running in. noticed splice in survey line (±500 m). Instructed the crew to stop running in and to retrieve the survey barrel (planned to slip and cut 500 m of wireline). The survey barrel was almost out of the hole when the line failed and dropped the survey barrel down the drill string. Tripped out bit 20. Retrieved damaged survey barrel. Repaired fire stop and hammer. Made up and ran bit 20 and air hammer. Tested air hammer, okay. Tripping in at report time.

NOTE: Canadian Air Drilling crew was filling fuel tank on rental compressor. Due to inattention, approximately 725 litres of diesel fuel was spilled onto the location and farmer's ditch. Environmental crew cleaned up the spill.

Number of people that showed up at the security gate during the past 24 hours: 14

ESTIMATED COSTS: DAILY $

38 978 CUMULATIVE $ 7 572 093 SUPERVISOR C. Abel/R. Genest

Page No. 205

DAILY DRILLING REPORT

8 °C Road Good Date 97 05 28

aBISSETT RESOURCE CONSULTANTS LTD.

Clear Temp Weather 183 Rig Ralex, 1 Day No.

mm Status Repairing air booster 1 m Hole Size 155 LEONARD NO. 1

PV mPa.s YP Pa Gels

mm Salt mg/L Cal. kg/m' Rate

kg/m' Rate kg/m'

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt.

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt.

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt.

s/L W.L. cm3 pH % Filter Cake

GENOIL et al ST. Well

Depth 3607 m Progress

Mud: Wt Air kg/m' Visc.

Methyl Blue Solids

ESTIMATED COSTS: DAILY $ 34 579 CUMULATIVE $ 7 606 672 SUPERVISOR C. Abel/R. Genest

HYDRAULIC PP Output AV kPa Umin r-min

DRILLING MUD ADDITIVES USED:

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD 2 Drill Actual 0.50 3 Reaming 4 Coring 5 Cond. Hole 6 Trips 16.50 7 Lubr. Rig 0.50

8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 1.50 22 Clean to Btm 1.00 23 Cge Rubbers 0.25 24 Repair Air Leak 0.75 25 Blew Hole 3.00

No. 20 Size - mm 155 Type H45R4S2 S.N. KJ7083 Jets - mm Wt. - daN r/min Out - m 3 607 In - m 3606 Metres 1 Hours 0.50 Condition New

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

SURVEYS m m m m m m m

PUMP Liner Length

No. mm mm 1 140 235 2 140 235

3 607

BITS 21 155 F37D LJ8474 Open

Page No. 206

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping in with bit 20. Broke circulation and blew hole clean. Serviced rig. Changed rotating head rubber. Drilling. Drilled to 3607 m KB, drill string packed off. Unable to break circulation. Tripped out bit 20. Found air hammer plugged off with drillpipe scale and graphite. Ran bit 21. Tripped into 2300 m 1KB. Broke circulation with air, blew drillpipe. Finished tripping in with bit 21. Tagged total depth. Broke circulation with air. Booster compressor developed air leak. Repairing air leak on booster compressor and changing drilling head element at report time.

Number of people who showed up at the security gate during the past 24 hours: 15

Air Circulation Rate: 49.0 m'/min at 2346 kPa

I

Pa mg/L Umin Umin

ESTIMATED COSTS: DAILY $ 38 379 CUMULATIVE $ 7 645 051 SUPERVISOR C. Abel/R. Genest

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp 7 °C Road Good Date 97 05 29 Weather Well GENOIL_et al ST. LEONARD NO. 1

Depth 3614 m Progress 7 m Hole Size

Mud: Wt Air kg/m' Visc. s/L W.L.

Methyl Blue Solids % Filter Cake

Desilter Underflow Wt. kg/m' Rate

Desilter Overflow Wt. kg/m' Rate Centrifuge Underflow Wt. kg/m'

Rig Ralex. 1 Day No. 184 155 mm Status WO repairs

cm' pH PV mPa.s YP Pa Gels Pa mm Salt mg/L Cal. mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

No. 21 BITS SURVEYS

m

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD

Size - mm 155 m ° 2 Drill Actual 2.00

Type F37D m ° 3 Reaming

S.N. LJ8474__ m 4 Coring

Jets - mm Open _ m 5 Cond. Hole 1.25

Wt. - daN 2 - 3 000 m 6 Trips 3.00

r/min 50 - 55 _ m 7 Lubr. Rig 0.25

Out - m 3614 PUMP 8 Repair Rig

In -m 3607 Liner Length 9 Cut Off D.L.

Metres 7 No. mm mm SPM 10 Dev. Survey

Hours 2.00 1 140 235 11 Wireline Log

Condition In 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Repair 24 Booster 17.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished changing rotating head element. Broke circulation and blew hole clean. Drilling. Cuttings are damp and hole is not making good dust. Drilled to 3614 m KB. Air equipment not deliverina_reauired air. Air circulation rate: ±47.0 m3/min at 2346 m KB (require ±58.0 m3/min). Pulled three stands drillpipe. Checked air equipment. Pulled bit 21 up into the 177.8 mm OD drilling liner. Waiting on parts to arrive from Nisku to repair booster compressor. Booster compressor shipped from Nisku should arrive on location 95 05 29, ±17:00 hours.

Number of visitors who showed up at the security gate durina the past 24 hours: 10

Page No. 207

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DAILY DRILLING REPORT C BISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 33 886 CUMULATIVE $ 7 678 937 SUPERVISOR C. Abel/R. Genest

Weather Overcast Temp 15 °C Road Good Date 97 05 30 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 185 Depth 3633 m Progress 19 m Hole Size 155 mm Status Surveying Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt._ kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 21 3617 m 10

TIME DISTRIBUTION Code/Operation Hours 1 2 3

4 5 6 7 8 9 10

RU&RD Size - mm 155 3 630 m 9.50 Drill Actual 4.75 Type F37D m Reaming

S.N. LJ8474 m Coring Jets - mm Open m Cond. Hole 3.50

Wt. - daN 3 000 m 0 Trips 7.25

r/min 50 - 55 m Lubr. Rig

Out - m 3 PUMP ...02._.

SPM

Repair Rig

In - m 3 607 Liner Length Cut Off D.L.

Metres 26 No. mm mm Dev. Survey 2.00

Hours 6.75 1 140 235 11 Wireline Log

Condition In 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Repairs 4.00 24 Change Out 25 Line 2.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waited on parts for the booster compressor to arrive from Nisku. Tripped out 89 mm OD drillpipe cleaned scale and thread compound out of tool joints. Ran bit 21 to drilling liner shoe. Repaired and tested booster compressor. Tripped into total depth, no fill. Broke circulation with air and blew hole clean. Drilling. Drilled to 3620 m KB, ran deviation survey, Changed out survey line. Drilling, hole making good dust. Drilled to 3633 m KB, blew hole clean. Ran deviation survey. Surveying at report time.

Air Circulation Rate: 61.0 m3/min at 3102 kPa Hole Drag: 22 000 daN up

18 000 daN down Number of visitors who showed up at the security gate during the oast 24 hours: 15

Page No. 208

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DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

PV mPa.s YP Pa Gels Pa

mm Salt mg/L Cal. mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

Weather Cloudy Temp 12

Well GENOIL_et al ST. LEONARD NO. 1

Depth 3657 m Progress 24 m Hole Size 155

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH

Methyl Blue Solids % Filter Cake Desilter Underflow Wt. kg/m' Rate Desilter Overflow Wt._ kg/m' Rate Centrifuge Underflow Wt. kg/m'

REMARKS: (Include cores, spud or rig release, casing, plugs, Drilling. Serviced rig and changed out rotatina head element. Tripped out bit 21. Ran 155 mm air hammer and drill collars. and blew drillpipe. Finished tripping in. Broke circulation with ROP: 10.0 m/h.

logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilled to 3641 m KB. ROP started decreasing and torque began increasing. Slipped and cut line. Finished tripping in 89 mm OD drillpipe. Broke circulation air, reamed from 3627 m to 3641 m KB. Drilling. Drilling at report time

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 21 22 m 1 RU & RD

Size - mm 155 155 m 2 Drill Actual 5.75

Type F37D H45R4S2 m 3 Reaming 2.00

S.N. HJ8474 KJ083 m Coring 4

Jets - mm Open m 5 Cond. Hole 1.25

Wt. - daN 3 000 2 000 m 6 Trips 12.25

r/min 50 - 55 45 m 7 Lubr. Rig 0.25

Out - m 3641 3 657 PUMP 8 Repair Rig

In - m 3607 3 641 . Liner Length 9 Cut Off D.L. 1.00

Metres 44 16 No. mm mm SPM 10 Dev. Survey

Hours 10.25 2.25 1 140 235 11 Wireline Log

Condition 1-1-In In 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 1.00 22 Clean to Btm 23 Change 24 Rubbers 0.25 25

Hole Draa: 18 000 daN up 18 000 daN down

String Weight: 100 000 daN Air Circulation Rate: 57 m'/min at 3792 kPa Number of visitors who showed up at the security gate during the past 24 hour: 7

ESTIMATED COSTS: DAILY $ 36 999 CUMULATIVE $ 7 715 936 SUPERVISOR C. Abel/R. Genest

Page No. 209

1'

°C Road Good Date 97 05 31 Rig Ralex, 1 Day No. 186

mm Status Drilling

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Cloudy Temp

GENOIL et al ST. LEONARD NO. 1 °C Road Good

Ralex, 1 Weather Well Rig

Depth 3667 m Progress Mud: Wt Air kg/n3 Visc. s/L W.L. Methyl Blue Solids % Filter Cake Desilter Underflow Wt. kg/m' Rate

Desilter Overflow Wt. kg/m' Rate

Centrifuge Underflow Wt. kg/m'

cm3 pH PV mPa.s YP Pa Gels Pa

mm Salt mg/L Cal. mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 20 (RR) 3648 m 6.25 1 RU&RD Size - mm 155 3 658 m 6.125 2 Drill Actual 2.25 Type H45R4S2 m 3 Reaming

S.N. KJ083 m 4 Coring Jets - mm m 5 Cond. Hole 1.00

Wt. - daN 2000-7000 m 6 Trips 17.75 r/min 45 m 7 Lubr. Rig 0.50 Out - m 3 667 PUMP 8 Repair Rig In - m 36_ Liner Length 9 Cut Off D.L.

Metres 26 No. mm mm SPM 10 Dev. Survey 2.00 Hours 4.50 11 Wireline Log

Condition 1-1-In__ 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 0.50 22 Clean to Btm 23 Change 24 Rubbers 0.25 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Blew hole clean, serviced rig. Rigged in accelerometer to swivel. Drilling. Drilled to 3667 m KB. Air hammer quit working. Blew hole clean. Serviced rig. Tripped out bit 20 (RR) and air hammer. Ran 22 stands 89 mm OD drillpipe. Laid down same to clean scale out of interior. Serviced air hammer. Ran bit 20 and air hammer. Tripping in at report time. picking up 89 mm OD drillpipe (20 joints remaining).

Hole Drag: 18 000 daN up 18 000 daN down

String Weight: 99 000 daN Air Circulation Rate: 580 m'/min at 3103 kPa Number of visitors who showed up at the security gate during the oast 24 hours: 19

ESTIMATED COSTS: DAILY $ 36 769 CUMULATIVE $ 7 752 705 SUPERVISOR C. Abel/R. Genest

Page No. 210

Day No. 187

12 Date 97 06 01

10 m Hole Size 155 mm Status Tripping

DAILY DRILLING REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Depth 3695 m Progress 28 m Hole Size 155 mm Status Tripping

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 22 3 668 m 5 7/8 1 RU & RD

Size - mm 155 m 2 Drill Actual 8.50 Type H45R4S2 m 3 Reaming

S.N. KJ7076 m Coring 4 Jets - mm - m 5 Cond. Hole 5.25

Wt. - daN 1 000 - 2 000 m 6 Trips 8.00 r/min 50 m 7 Lubr. Rig 0.25 Out - m 3 695 PUMP 8 Repair Rig In - m 3 667 Liner Length 9 Cut Off D.L. Metres 28 No. mm mm SPM 10 Dev. Survey 1.00 Hours 8.50 11 Wireline Log Condition In 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 0.75 23 Change 24 Rubbers 0.25 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished picking up 89 mm OD drillpipe. Blew 89 mm drillppe. Finished tripping in. Broke circulation and blew hole clean. Changed out rotating head element. Broke circulation. Hole is damp. Blew hole to drv, worked tight hole. Drilling with good dust. Drilling. Drilled to 3 696 m KB. Hole tight. Worked tight hole while circulating with air. Lost ±8 000 daN string-weight and ±690 kPa air pressure, possible twist off. Blew hole clean. Tripping out to check bottomhole assembly at report time.

Air Circulation Rate: 60.6 m3/min at 3 723 kPa Hole Drag: 9 000 daN up

6 000 daN down String Weight: 101 000 daN Torgue: 13 000 to 19 900 N•m Number of visitors who showed uo at the security gate during oast 24 hours: 11

NOTE: Gas flow to surface increased to 3 to 4 m flare at ±3 695 m KB.

ESTIMATED COSTS: DAILY $ 42 989 CUMULATIVE $ 7 795 694 SUPERVISOR C. Abel/R. Genest

Page No. 211

J

Temp 8 °C Road

GENOIL et al ST. LEONARD NO. 1 Date 97 06 02

Rig Ralex, 1 Day No. 188 Weather

Well

Good Clear

ESTIMATED COSTS: DAILY $ 49 130 CUMULATIVE $ 7 844 824 SUPERVISOR C. Abel/R. Genest

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 6 °C Road Good Date 97 06 03

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 189

Depth 3695 m Progress 0 m Hole Size 155 mm Status WO DC inspection

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 22 m 1 RU & RD Size - mm 155 m 2 Drill Actual

Type H45R4S2 m 3 Reaming

S.N. KJ7076 m Coring 4

Jets - mm - m 5 Cond. Hole

Wt. - daN 1 000 - 2 000 m 6 Trips 14.25

r/min 50 m 7 Lubr. Rig 0.25

Out - m 3 695 PUMP 8 Repair Rig

In - m 3 667 _ Liner Length 9 Cut Off D.L.

Metres 28 No. mm mm SPM 10 Dev. Survey Hours 8.50 _ 1 140 235 11 Wireline Log

Condition 8-8-Out (5mm) 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 1.00

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 4.00 22 Clean to Btm 23 Waiting on 24 DC Inspec. 4.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out. Found 114 mm OD HWDP twisted off at 13550 m KB. Made up and ran 146 mm OD overshot. iars and 121 mm OD drill collars. Tagged top of fish at 3550 m KB. Latched onto fish. Worked and iarred fish free in 1 hour using 167 000 daN maximum force. Tripped out and recovered fish. Laid down hammer and fishing string. Waiting on drill collar inspection equipment and operator to arrive from Nova Scotia. ETA is 09:00. Found rounded formation cuttings on top of Totco ring ranging in size from 12 mm to 25 mm in diameter.

Number of visitors who showed up at the security gate during the past 24 hours: 24

Plan to inspect 114 mm OD HWDP and 121 mm OD DC before resuming drilling operations.

Page No. 212

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ESTIMATED COSTS: DAILY $ 48 414 CUMULATIVE $ 7 883 238 SUPERVISOR C. Abel / R. Genest

CI BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 8 °C Road Good Date 97 06 04

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 190

Depth 3 698 m Progress 3 m Hole Size 155 mm Status Drilling

Mud: Wt Air kg/m3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 21 RR 3 687 m 4 1/4 1 RU & RD Size - mm Type S.N.

155 m ° 2 Drill Actual 2.00 F37D m 3 Reaming LJ8474 m 4 Coring

Jets - mm Open m 5 Cond. Hole 1.00 Wt. - daN 2 000 - 2 500 06 Trips 4.50 r/min 40-45 m ° 7 Lubr. Rig Out - m In PUMP 8 Repair Rig In - m 3 695 Liner Length 9 Cut Off D.L. Metres 3 No. mm mm SPM 10 Dev. Survey 1.25 Hours 2 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 1.50 23 Change Rubber 0.25 24 Wart D/C Inspection 7.00 25 Torque 1.00 26 Inspect BRA 5.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Wait on inspection equipment and technician to arrive from Nova Scotia. Inspected 120 mm DCs and 114 mm HWDP. Laid down 3 x 120 mm Drill Collars. Ran bit #21 RR to 3 450 m KB. Ran base line torque. Trip into 3 650 m KB. Broke circulation with air. Ream from 3 650 m to 3 695 m KB. Circulated hole clean. Ran drift survey. Changed out rotating head element. Broke circulation with air. Drilling. Drilling at report time.

Air Circulation Rate: 62.0 m3/min at 3 102 kPa Hole Drag: 18 000 daN up

8 000 daN down Torque: 10 550 to 13 980 N.m Gas Flow: TSTM

Number of visitors at security pate during last 24 hours: 11

Page No. 213

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aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 5 'C Road Good Date 97 06 05 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 191 Depth 3 704 m Progress 3 m Hole Size 155 mm Status Drilling Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS No. 21 RR 22

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm 155 155 m 2 Drill Actual 2.75 Type F37D H45R452 m ° 3 Reaming S.N. LJ8474 KJ7081 m 4 Coring Jets - mm Open Open m 5 Cond. Hole 1.25 Wt. - daN 2 000 3 000 1 000 - 1 500 m 6 Trips 18.00 r/min 40-45 20 - 25 m 7 Lubr. Rig 0.25 Out - m 3 701 In PUMP 8 Repair Rig In - m 3 695 3 701 Liner Length 9 Cut Off D.L. 0.75 Metres 6 3 No. mm mm SPM 10 Dev. Survey Hours 4.00 0.75 1 140 235 11 Wireline Log Condition 1-1-1 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa I./min m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 1.00 23 24 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling, drilled to 3 701 m KB. Blew hole clean. Tripped out to top of drilling liner (NOTE: Hole drag 35 000 - 42 000 daN over string weight for first 8 stands with pipe rotating). Serviced rig, Slipped and cut line. Tripped back to bottom to check for fill. No fill. Blew hole clean. Tripped out bit 21 RR. Made up and ran bit 22 and hammer drill. Tripped into 3 685 m KB. Broke circulation with air and worked bit to bottom. Drilling. Drilling at report time, ROP: 5.0 m/min. Hole making good dust.

Air Circulation Rate: 62.0 m3/min at 3 792 kPa String Weight: 107 000 daN Hole Drag: 18 000 daN up

10 000 daN down Rotary Torque: 15 600 to 17 890 N.m Gas Flow: TSTM, no change

Number of visitors at security gate during last 24 hours: 8

ESTIMATED COSTS: DAILY $ 43 836 CUMULATIVE $ 7 927 074 SUPERVISOR C. Abel / R. Genest

Page No. 214

Good Weather Date 97 06 06 Clear Temp 8 ̀C Road

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 192 Depth 3 754 m Progress 50 m Hole Size 155 mm Status Check BHA Mud: Wt Air kg/m3 Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m3 Rate Umin Desilter Overflow Wt._ kg/m3 Rate Umin Desander Overflow Wt. kg/m3 Rate Umin Centrifuge Underflow Wt. kg/m3 Centrifuge Overflow Wt. kg/m3

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 22 3 727 m 5 7/8 1 RU & RD Size - mm 155 m 2 Drill Actual 13.25 Type H45R452 m o 3 Reaming S.N. KJ7081 m ° 4 Coring Jets - mm Open m ° 5 Cond. Hole Wt. - daN 1 000 - 1 500 m 6 Trips 6.25 r/min 20 - 25 m 7 Lubr. Rig 0.50 Out - m 3 754 PUMP 8 Repair Rig In - m 3 701 Liner Length 9 Cut Off D.L. Metres 53 No. mm mm SPM 10 Dev. Survey 1.50 Hours 14 1 140 235 11 Wireline Log Condition 1-1-In (1 insert broke offt 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 2.00 22 Clean to Btm 23 Attempt to 24 circulate 0.50 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Drilled to 3 710 m KB. Serviced rig. Drilled to 3 728 m KB. Serviced rig. Drilled to 3 733 m KB, blew hole clean. Ran drift survey. Drilling. Drilled to 3 754 m KB, air pressure increased to 5 860 kPa very rapidly. Bled off pressure and pulled bit 22 into the drilling liner. Attempted unsuccessfully to break circulation. Pulled bit 22 to check BHA for plugging. Breaking down BHA at report time.

Air Circulation Rate: 62.0 m3/min at 4 482 kPa String Weight: 107 000 daN Hole Drag: 20 000 - 30 000 daN up

15 000 daN down Rotary Torque: 1 789 to 2 246 daN.m Gas Flow: TSTM, slight increased observed.

Number of visitors at security gate during last 24 hours: 6

ESTIMATED COSTS: DAILY $ 36 289 CUMULATIVE $ 7 948 213 SUPERVISOR C. Abel / R. Genest

Page No. 215

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GENOIL et al ST. LEONARD NO. 1 Weather Well

Clear Temp 8 'C Road Good Date 97 06 07 Rig Ralex, 1 Day No. 193

Depth 3 805 m Progress Mud: Wt Air kg/m3 Visc. Methyl Blue Solids Desilter Underflow Wt.

51 m Hole Size 155.6 mm Status Drilling s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa % Filter Cake mm Salt mg/L Cal. mg/L

kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin kg/m' Rate Umin Desander Overflow Wt. kg/m3 Rate Umin

kg/m' Centrifuge Overflow Wt. kg/m'

ESTIMATED COSTS: DAILY $ 39 846 CUMULATIVE $ 7 988 059 SUPERVISOR C. Abel / R. Genest

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 22 3 794 m 4 1 RU&RD Size - mm 155.6 m 2 Drill Actual 13.75 Type H45R452 m 3 Reaming S.N. KJ7081 m 4 Coring Jets - mm Open m 5 Cond. Hole 3.00 Wt. - daN 1 000 - 1 500 m 6 Trips 5.25 r/min 20 - 25 m 7 Lubr. Rig 0.50 Out - m 3 805 PUMP 8 Repair Rig In - m 3701 Liner Length 9 Cut Off D.L. Metres 104 No. mm mm SPM 10 Dev. Survey 1.00 Hours 27.75 1 140 235 11 Wireline Log Condition In 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 0.50 22 Clean to Btm 23 24 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Located plugging problem, repaired and serviced fire stop float. Run in hole. Break circulation with air and cleaned out to bottom. Serviced rig. Circulated with air and dried hole. Drilling. Drilled from 3 754 m to 3 800 m KB. Circulated hole clean with air. Hoisted 2 stands and recovered string float. Serviced rig and function hydril. Survey at 3 794 m KB - 4°. Drilling. Drilled from 3 800 m to 3 805 m KB. Air Circulation Rate: 67.5 m3/min at 4 750 kPa String Weight: 109 000 daN Hole Drag: 25 000 daN up, peaks at 42 000 daN

20 000 daN down Rotary Torque: 1 789 daN to 2 296 daN Gas Flow: TSTM BHA: Bit-Hammer-Float Sub PinUp-Bit Sub-Fire Stop-12 Dcs-Jars-3DCs-8 HWDP, BHA length - 218.66 m

Number of visitors at security gate during last 24 hours: 3

Page No. 216

Desilter Overflow Wt. Centrifuge Underflow Wt.

J

CI BISSETT RESOURCE CONSULTANTS LTD.

J

DAILY DRILLING REPORT

Weather Clear Temp 10 °C Road Good Date 97 06 08

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 194

Depth 3 888 m Progress 83 m Hole Size 155.6 mm Status Circulating hole clean with air.

Mud: Wt Air kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate L/min Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 22 RR m 0 1 RU & RD Size - mm 155.6 m 2 Drill Actual 23.00 Type H45R452 m 0 3 Reaming S.N. KJ7081 m 0 4 Coring Jets - mm Open m 5 Cond. Hole 0.50 Wt. - daN 1 000 - 2 000 m 6 Trips r/min 20 - 25 m 7 Lubr. Rig 0.50 Out - m 3 888 PUMP 8 Repair Rig In - m 3 701 Liner Length 9 Cut Off D.L. Metres 187 No. mm mm SPM 10 Dev. Survey Hours 50.75 11 Wireline Log Condition In 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Drilled from 3 805 m to 3 824 m KB. Serviced rip. Drilling. Drilled form 3 824 m to 3 883 m KB. Serviced rig. Drilling. Drilled from 3 883 m to 3 888 m KB. Circulated hole clean prior to survey. Held safety meeting, informed crew to be aware of high pressure gas consequences and to be alert stripping out may be required at higher gas rates.

Air Circulation Rate: 68.0 m'/min at 3 725 kPa String Weight: 110 000 daN Hole Drag: 25 000 daN up

18 000 daN down Rotary Torque: 1 560 daN to 1 900 daN Gas Flow: TSTM BHA: Bit-Hammer-Float Sub PinUp-Bit Sub-Fire Stop-12 Dcs-Jars-3DCs-8 HWDP, BHA length - 218.66 m

Number of visitors at security gate during last 24 hours: 11

ESTIMATED COSTS: DAILY $ 35 879 CUMULATIVE $ 8 023 938 SUPERVISOR C. Abel / R. Genest

Page No. 217

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp 10 °C Road Good Date 97 06 09

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 195 Depth 3 889 m Progress 1 m Hole Size 155.6 mm Status Working stuck pipe. Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 22 RR 24 3 880 m 3 3/4 1 RU & RD Size - mm 155.6 155.6 m ° 2 Drill Actual 2.50 Type H45R452 H55R6S2 m ° 3 Reaming S.N. KJ7081 KJ7084 m 4 Coring Jets - mm Open Open m 5 Cond. Hole 2.50 Wt. - daN 1 000 - 2 000 1 000 - 2 000 m ° 6 Trips 12.25 r/min 20 - 25 20 - 25 m 7 Lubr. Rig 0.50 Out - m 3 888 3 889 PUMP 8 Repair Rig In - m 3 701 3 888 Liner Length 9 Cut Off D.L. Metres 187 1 No. mm mm SPM 10 Dev. Survey 1.25 Hours 50.75 2.50 1 140 235 11 Wireline Log Condition T-4 6-In In 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 3.50 22 Clean to Btm 23 Work stuck pipe 1.50 24 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Hoisted 2 stands and recovered float sub. Surveyed. Circulated. Pulled out of hole, first two stands very tight, 40 000 daN drag. Serviced rig. Slipped and cut line. Finished pulling out of hole. Blew air through BOP and function. Removed fire stop float, bit sub floats, checked and repaired. Inspected and serviced hammer and changed bit. Ran in hole to 3 880 m KB. Broke circulation. Circulated hole clean and cleaned out to 3 888 m KB. Attempted to drill ahead from 3 888 m to 3 889 m KB. Worked stuck pipe.

Air Circulation Rate: 62.0 m'/min at 4 860 kPa String Weight: 114 000 daN Hole Drag: 24 000 daN up, peaks above 45 000 daN

18 000 daN down Rotary Torque: 1 560 daN to 1 903 daN Gas Flow: TSTM BHA: Bit-Hammer-Float Sub PinUp-Bit Sub-Fire Stop-12 Dcs-Jars-3DCs-8 HWDP, BHA length - 218.66 m

Number of visitors at security gate during last 24 hours: 11

ESTIMATED COSTS: DAILY $ 45 035 CUMULATIVE $ 8 068 973 SUPERVISOR C. Abel / R. Genest

Page No. 218

BISSETT RESOURCE CONSULTANTS LTD. Cli

DAILY DRILLING REPORT

Weather Overcast /Showers Temp 16 °C Road Good Date 97 06 10 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 196 Depth 3 896 m Progress 7 m Hole Size 155.6 mm Status Drilling Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS No. 24 25

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU 8 RD

Size - mm 155.6 155.6 m 0 2 Drill Actual 3.00 Type H55R6S2 F-5 m 3 Reaming 7.00 S.N. KJ7084 LV8473 m 4 Coring Jets - mm 3 x 12.7 m ° 5 Cond. Hole Wt. - daN 2 000 4 000 m 6 Trips 11.50 r/min 25 40 - 45 m 7 Lubr. Rig 0.25 Out - m 3 890 3 896 PUMP 8 Repair Rig In - m 3 888 3 890 Liner Length 9 Cut Off D.L. Metres 2 6 No. mm mm SPM 10 Dev. Survey Hours 3.25 2.25 1 140 235 11 Wireline Log Condition Damaged In 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Work stuck pipe 2.00 24 Break Circ. 0.25 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pipe freed. Reamed tight hole back to bottom. Attempted to drill ahead from 3 889 m to 3 890 m KB, no success. Worked pipe and reamed out tight spots. Hammer problems. Pulled out of hole. Checked and laid out hammer and jars. Replaced tri cone bit and jars. Ran in hole. Serviced rig. Broke circulation. Reamed and cleaned to bottom from 3 795 m to 3 890 m KB. Drilling. Drilled from 3 890 m to 3 896 m KB.

Air Circulation Rate: 62.0 m3/min at 3 500 kPa String Weight: 118 000 daN Hole Drag: 20 000 daN up

17 000 daN down Rotary Torque: 1 055 daN to 1 740 daN Gas Flow: TSTM BHA: Bit-Pin Up Float Sub-Bit Sub-Fire Stop-9 DCs-Jars-6DCs-8 HWDP, BHA length - 217.61 m Current ROP: 2.5 m/h Number of visitors at security gate during last 24 hours: 8

ESTIMATED COSTS: DAILY $ 40 680 CUMULATIVE $ 8 109 653 SUPERVISOR C. Abel / R. Genest

Page No. 219

DAILY DRILLING REPORT 41I BISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 33 195 CUMULATIVE $ 8 142 848 SUPERVISOR C. Abel/D. Gaboury

Weather Overcast Temp 18 °C Road Good Date 97 06 11 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 197 Depth 3992 m Progress 96 m Hole Size 155 mm Status

Drilling

Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours No. 25 m ° 1 RU & RD Size - mm 155.6 m 2 Drill Actual 21.50 Type F-5 m 3 Reaming S.N. LV8473 m 4 Coring Jets - mm _3_),U11 m 5 Cond. Hole 1.50 Wt. - daN 4 - 8 000 m 6 Trips r/min 50 - 55 m 7 Lubr. Rig 0.50

Out - m 3 992 PUMP 8 Repair Rig In - m 3 $90 Liner Length 9 Cut Off D.L. Metres 102 No. mm mm SPM 10 Dev. Survey Hours 23.75 1 140 235 11 Wireline Log Condition In 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Change 24 Rotate 25 Rubbers 0.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Drilled to 3938 m KB. Serviced rig, blew hole clean and changed out rotating head element. Broke circulation drilling. Drilled to 3968 m KB. Serviced rig. worked pipe and blew hole clean. Drilling. Drilling at reo rt time, ROP: ±4.0 m/h.

String Weight: 119 000 daN Hole Drag - Up: 25 - 27 000 daN

- Down: 15 - 16 000 daN Rotary Torque: 9 590 - 17 580 N•m at 50 - 55 RPM Gas Flow: TSTM Air Circulation Rate: 60.5 m'/min at 3 150 kPa

Number of visitors at security gate during the past 24 hours: 13

Page No. 220

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DRILLING MUD ADDITIVES USED:

13 Wait on Cmt

HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

ESTIMATED COSTS: DAILY $ 37 668 CUMULATIVE $ 8 180 516 SUPERVISOR C. Abel/D. Gaboury

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather

Well GENOIL et al ST. LEONARD NO. 1

Depth 4037 m Progress 45 m Hole Size

Mud: Wt Air kg/m' Visc. s/L W.L.

Methyl Blue Solids % Filter Cake Desilter Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m3

Rig Ralex, 1 Day No. 198 155.6 mm Status Tripping

cm3 pH PV mPa.s YP Pa Gels Pa

mm Salt mg/L Cal. mg/L Desander Underflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 25 4030 m 7 1 RU & RD

Size - mm 155.6 m 2 Drill Actual 11.00

Type F-5 m 3 Reaming

LV8473 m 4 Coring S.N. Jets - mm 3 x 12.7 m 5 Cond. Hole 3.50 Wt. - daN 4-8000 m 6 Trips 4.50 r/min 50 - 55 m 7 Lubr. Rig 0.50

Out - m 4 037 PUMP 8 Repair Rig In - m 3890 Liner Length 9 Cut Off D.L. Metres 147 No. mm mm SPM 10 Dev. Survey 4.50

Hours 34.75 1 140 235 11 Wireline Log

Condition In 2 140 235 12 Run Csg/Cmt

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Drilling. Drilled to 4000 m KB. Blew hole and worked drill string. Drillina. Drilled to 4024 m KB. Pulled 8 stands, recovered string float. Drillina. Drilled to 4025 m KB. torque began to increase while ROP was slowing. Ran deviatiortsurvevs. Two misruns. Decided to drill ahead to FTD (until bit stops drilling). Drilled to 4037 m KB. Blew hole clean. Ran two deviation surveys, one misrun. Pulled 7 stands, hole tight. Pulled 35 - 42 000 daN over string weiahtwhile rotating. Plan to pull bit to 3843 m KB. shut in well and record pressure buildup. If possible. the small gas flow will be measured.

String Weight: 120 000 daN Hole Drag - Up: 35 - 42 000 daN (rotating)

- Down: 18 - 20 000 daN Rotary Torque: 16 440 to 17 580 N•m Gas Flow: TSTM Air Circulation Rate: 62.0 m'/min at 3450 kPa Number of visitors at the security gate during the past 24 hours: 10

Page No. 221

16 °C Road Good Overcast/Showers Temp Date 97 06 12

J

DAILY DRILLING REPORT aBISSETT RESOIJRCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 30 588 CUMULATIVE $ 8 211 104 SUPERVISOR C. Abel/D. Gaboury

Weather Overcast Temp 16 °C Road Good Date 97 06 13 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 199 Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Displacing Mud: Wt Air kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 25 21 RR m 1 RU & RD

Size - mm 155.6 155.6 m 2 Drill Actual

Type F-5 F-37D m 3 Reaming

S.N. LV8473 LJ8474 m 4 Coring

Jets - mm 3 x 12.7 Open m 5 Cond. Hole 2.25

Wt. - daN 4 - 8 000 m 6 Trips 11.00 r/min 50 - 55 m 7 Lubr. Rig 0.50 Out - m 4 037 Cleanout PUMP 8 Repair Rig In - m 3 890 Trip Liner Length 9 Cut Off D.L. 1.50

Metres 147 No. mm mm SPM 10 Dev. Survey Hours 34.75 1 140 235 11 Wireline Log

Condition 8-2-4 2 140 235 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Repair Too 0.50 24 Drive 25 Purge Line 0.75 26 Flow Test 7.50

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Pulled bit to 3843 m KB. Shut in well in and recorded pressure buildup. Shut-in surface pressure built to 572 kPa in 3.5 hours. Installed 3.18 mm in 50.8 mm flow prover. Well oraducino_982 m'/d and pressure continued to build. Installed 6.35 mm orifice. Well producing 4029 m3/d at 585 kPa. Flowing pressure declining. Installed 4.76 mm orifice. Flow rate was 2255 m3/d and the flowing pressure was climbing. Installed 6.35 mm orifice inflow prover. Flow rate declined from 4176 to 3941 m'/d. Flowino_pressure: 610 to 570 kPa in 1.75 hours. Flow rate was not stabilized at end of test period.. Terminated testing operation and blew hole clean. Tripped out bit 25. Serviced rig, slipped and cut line. Ran bit 21 (RR). Shut down to repair to drive. Tripped in to 3843 m KB. Displaced 8.0 m' drilling mud. Pulled bit to 3650 m KB. Pumped 8.0 m' drilling mud. Pulled bit to 3449 m KB. Displacing wellbore with drilling fluid at report time.

Number of visitors at security gate during the oast 24 hours: 15

Page No. 222

1

DAILY DRILLING REPORT C BISSETT RESOURCE CONSULTANTS LTD.

ESTIMATED COSTS: DAILY $ 40 736 CUMULATIVE $ 8 251 840 SUPERVISOR C. Abel/D. Gaboury

J

Weather Clear Temp 10 °C Road Good Date 97 06 14 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 200 Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Circulating Mud: Wt 1200 kg/m' Visc. 110 s/L W.L. 7.0 cm3 pH 9.0 PV 67 mPa.s YP 17.5 Pa Gels 5/11 Pa

Methyl Blue 70 Solids 7.4 % Filter Cake 1.0 mm Salt - mg/L Cal. 40 mg/L Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS

No. 21 (RR) m

TIME DISTRIBUTION Code/Operation Hours 1 2 3 4 5 6 7 8 9 10

RU & RD

Size - mm 155.6 m Drill Actual

Type F37D m Reaming

S.N. LJ8474 m Coring Jets - mm Open m Cond. Hole 11.25

Wt. - daN m Trips 3.75 r/min m Lubr. Rig 0.25 Out - m Clean PUMP

SPM

Repair Rig In - m Out Liner Length Cut Off D.L.

Metres Trip No. mm mm Dev. Survey Hours 1 140 235 60 11 Wireline Log

Condition 2 140 235 , 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

319 sxs Barite 3 sxs Zanvis PP Output AV Power 15 Test BOP

40 sxs Gel 5 sxs Caustic kPa Umin m/min kW 16 DST 4 sxs Drispac 9000 660 85 100 17 Plug Back

4 sxs Lignite 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 3.50 23 Mix Mud 5.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Displaced 93.0 m' drilling fluid into wellbore. Shut down to build volume. Finished displacing wellbore to drilling fluid. Circulated to condition mud. Tripped in, reamed and cleaned from 3494 m to 4037 m KB. Worked drill string, circulated to condition mud and hole. Made dummy trip to 3450 m KB. Hole is in good condition, no tight soots or bridges encountered during dummy trip. Circulating at report time while waiting on loggers.

String Weight: 10 000 daN Hole Drag - Up: 14 000 daN

- Down: 16 000 daN

Security gate personnel and air drilling men and equipment have been released.

Page No. 223

DAILY DRILLING REPORT

BISSETT RESOURCE CONSULTANTS LTD. Cit..

Good Date 97 06 15 Weather Clear Temp 7 °C Road

ESTIMATED COSTS: DAILY $ 27 281 CUMULATIVE $ 8 279 121 SUPERVISOR C. Abel/D. Gaboury

J

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 201

Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Tripping Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. 21 (RR) m 1 RU & RD Size - mm 155.6 m 2 Drill Actual Type F37D m 3 Reaming

S.N. LJ8474 m 4 Coring Jets - mm Open m 5 Cond. Hole 1.75

Wt. - daN m 6 Trips 12.00 r/min m 7 Lubr. Rig 0.25 Out - m Clean PUMP 8 Repair Rig In - m Out Liner Length 9 Cut Off D.L.

Metres Trip No. mm mm SPM 10 Dev. Survey

Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 S/B Repair 24 Gen. 7.25 25 Flow Nipple 2.00 26 Break Circ, 0.75

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated to condition mud and hole while waiting onioaaers. Tripped out bit_21 (RR). Rigged in loggers. Generator failed on lamina unit, unable to repair and unable to run open hole logs. Waiting on replacement generator. Tore out drilling head and blouie line. Refrabricated and installed flow nipple. Serviced ria. Ran bit 21 (RR) while waiting on Generator. Broke circulation at 2030 m KB. Tri pins in at report time. ETA Generator: 16:00. 97 06 15.

Page No. 224

Hours Code/Operation m

• 1 RU & RD

m o 2 Drill Actual

m o 3 Reaming

m ° 4 Coring

m • 5 Cond. Hole 7.50

m • 6 Trips 7.50 m • 7 Lubr. Rig

PUMP

8 Repair Rig

Liner Length

9 Cut Off D.L.

No. mm mm

SPM 10 Dev. Survey

1 140 235 , 60 11 Wireline Log 3.00

2 140 235

12 Run Csg/Cmt 13 Wait on Cmt

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Clear Temp

10 °C Road Good

Date 97 06 16 Well GENOIL et al ST. LEONARD NO. 1

Rig Ralex, 1

Day No. 202

Depth 4037 FTD m Progress

0 m Hole Size 155.6 mm Status Logging

Mud: Wt 1215 kg/m' Visc. 100 s/L W.L. 8.0 cm' pH 9.0 PV 50 mPa.s YP 9.0 Pa Gels 2/5 Pa

Methyl Blue 64.0 Solids 7.5 % Filter Cake

1.0 mm Salt - mg/L Cal. 40 mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m'

Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION

SURVEYS

No. 21 (RR)

Size - mm 155.6 Type F37D

S.N. LJ8474

Jets - mm ODen

Wt. - daN r/min Out - m Clean

In - m Out

Metres Trip

Hours Condition

BITS

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up 25 sxs Gel PP Output AV Power 15 Test BOP

1 sx Xanvis kPa Umin m/min kW 16 DST 105 sxs Barite 9000 660 85 100 17 Plug Back

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Repair Logging

24 Unit 6.00 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) WO logging unit generator to arrive on the location. Circulated to condition mud and hole. Tripped out bit 21 (RR). Strapped drill string out

of hole, -2.93 m difference, no correction made vet. Generator arrived on location. Rigged to run open hole logs. Worked on generator

and logging computers. Ready to begin lamina at 03:00. 97 06 16. Ran DLL and DSI logging tools in tandem (length: 31.0 m). Logging tools huna uo at 2260 m KB (top 177.8 mm OD liner at 2228 m KB). Pulled 670 daN over tool weight to pull tools out of the liner. Pulling

logging tools at report time, Plan to run two knuckle ioints on next attempt.

NOTE: Dowell informed us yesterday a cement truck may not be available when needed. Communicating with Dowell and other companies.

ESTIMATED COSTS: DAILY $

26 144 CUMULATIVE $ 8 305 265 SUPERVISOR C. Abel/D. Gaboury

Page No. 225

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ESTIMATED COSTS: DAILY $ 28 025 CUMULATIVE $ 8 333 290 SUPERVISOR C. Abel/D. Gaboury

CrISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Overcast, rain Temp 15 °C Road Good Date 97 06 17 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 203 Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Waiting on fisherman Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids %Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

TIME DISTRIBUTION Code/Operation Hours 1 RU&RD 2 Drill Actual 3 Reaming 4 Coring 5 Cond. Hole 6 Trips 7 Lubr. Rig 8 Repair Rig 9 Cut Off D.L.

SPM 10 Dev. Survey 11 Wireline Log 13.00 12 Run Csg/Cmt 13 Wait on Cmt 14 Nipple Up

Power 15 Test BOP kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing 20 Directional 21 Handle Tool 22 Clean to Btm 23 Sidewall Core 3.00 24 Worked Stuck 25 Tool 5.00 26 Waiting on 27 Fisherman 3.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping out logging tools. Added knuckle ioints to logging tool string. Ran logging tools to bottom without incident. Ran DLL from 4028 m to 3489 m KB DSI from 4008 m to 2450 m KB and ONL-LDT from 4036 m to 2981 m KB. Pulled and laid down logging tools. Made up and ran sidewall core (explosive) tool. Took nine sidewall samples at: 3972 m (2). 3971 m (2). 3970 m (2). 3969 m (2) and 3968 m KB. Unable to move sidewall core tool after ninth sample. Worked tool to maximum allowable pull. 1600 daN overpull. Tool refuses to come free. Fisherman mobilized from Nisku (ETA: *24:00. 97 06 17). Waiting on fisherman at report time.

Sidewall core tool: 58.7 mm OD fishing neck. 82.6 mm OD x 4.7 m length. Top tool at:±3961 m. bottom at *3965.7 m KB.

NOTE: Attached is a Summary of Flow Prover Volume Calculations detailing open hole flow test details.

Page No. 226

BITS SURVEYS

No. m

Size - mm m

Type m

S.N. m

Jets - mm m

Wt. - daN m

r/min m

Out - m PUMP

In - m Liner Length

Metres No. mm mm Hours 1 140 235

Condition 140 , 235

DRILLING MUD ADDITIVES USED: HYDRAULIC PPOutput AV kPa Umin m/min

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable)

DAILY DRILLING REPORT CBISSETT RESOURCE CONSULTANTS LTD. 6$*

Good Date 97 06 18 Weather Clear Temp 10 °C Road

ESTIMATED COSTS: DAILY $ 87 414 CUMULATIVE $ 8 420 704 SUPERVISOR C. Abel/D. Gaboury

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 204

Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Tripping

Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD

Size - mm m 2 Drill Actual Type m 3 Reaming S.N. m 4 Coring Jets - mm m 5 Cond. Hole 5.00 Wt. - daN m 6 Trips 0.25 r/min m 7 Lubr. Rig Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 1 140 235 11 Wireline Log Condition 2 140 235 12 Run Csg/Cmt

13 Wait on Cmt DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 1.75 22 Clean to Btm 23 WO Fisherman 13.00 24 Worked Stuck 25 Tool 4.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Waiting on fisherman. Continued to work stuck tools. Tool string carne free with 1 800 daN overoull. Tripped out and recovered sidewall coring tool. Had three formation samroles out of eight shots. Rigged out and released wireline unit. Laid down 8 - 89 mm OD HWDP and 15 - 121 mm OD drill collars. Tripping in open ended drilloipe at report time to start abandonment operations.

NOTE: Attached is the pressure buildup data obtained before the flow test was conducted on 97 0 6 12.

Page No. 227

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BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Overcast Temp 15 °C Road Good Date 97 06 19 Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 205

Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Waitina on cement

Mud: Wt 1195 kg/m' Visc. 75 s/L W.L. cm3 pH 8.5 PV 44 mPa.s YP 7 Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt._ kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt._ kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

No.

BITS SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD

Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m 4 Coring

Jets - mm m 5 Cond. Hole 9.75

Wt. - daN m 6 Trips 3.50

r/min m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey

Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 13 Wait on Cmt 9.50

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up

2 sxs Caustic PP Output AV Power 15 Test BOP

10 sxs Bicarb kPa Umin m/min kW 16 DST

2 sxs Spersene 17 Plug Back 1.25 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Finished tripping with open ended drillpipe. Broke circulation and washed 2.0 m to bottom. Circulated to condition mud and hole. Rigged in cementers. Pressure tested surface equipment to 15 009 kPa. Circulated and WOO. Held safety meeting. Ran Plua 1, 4037 m to 3930 m KB (drillpipe landed at 4034.0 m KB) with 4.8 tonnes (3.6 m3) Class "G" + 0.7% D-160 + 0.5% D-65 + 9 Utonne D-81. Slurry density: 1900 ka_/m3. Plug down at 19:20, 97 06 18. Pulled 12 stands drillpipe, first four very slowly. Reverse circulated two bottoms up, recovered 1.0 m3 cement contaminated drilling fluid on bottoms up. Circulatinalona_wav at report time while waiting on cement. Plan to taa Plug 1 at 07:20. 97 06 19.

ESTIMATED COSTS: DAILY $

31 841 CUMULATIVE $ 8 452 545 SUPERVISOR C. Abel/D. Gaboury

Page No. 228

C BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Clear Temp 12 °C Road GENOIL et al ST. LEONARD NO. 1

Date 97 06 20 Rig Ralex, 1 Day No. 206

Weather Well

Good

Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Waiting on cement

Mud: Wt kg/m' Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 0 1 RU & RD

Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m 4 Coring

Jets - mm m ° 5 Cond. Hole

Wt. - daN m 0 6 Trips 3.50 r/min m ° 7 Lubr. Rig

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey

Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 13 Wait on Cmt 16.25

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 1.25 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Safety Mtg 0.50 24 Reverse Circ. 2.50 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated while waiting on cement. Ran open ended drillpipe. Tagged top Plug 1 at 3931 m KB with 1800 daN string weight at 07:20 97 06 19. Tripped out, landed open ended drillpipe at 3544 m KB. Held safety meeting. Ran Plug 2. 3544 m to 3444 m KB with 5.3 tonnes (4.0 m') Class "G" + 0.5% D-65 + 0.7% D-160 + 5.0 Utonne D-81 at 1900 kg/m' slurry density. Plug down at 09:20. 97 06 19. Pulled 12 stands drillpipe to 3200 m KB. Reverse circulated two bottoms up. Recovered 1.6 m' cement contaminated drilling fluid. Circulated long way while waiting_on cement. Laid down 51 joints 127 mm OD drillpipe. Circulated while waiting on cement. Ran open ended drillpipe, tagged too of cement Plug 2 at 3420 m KB with 18 - 2000 daN string weight at2120, 97 06 19. Tripped out, landed open ended drillpipe at 2275 m KB. Held safety meeting. Ran Plug 3.2275 m to 2175 m KB with 4.6 tonnes (3.5 m3) Class "G" + 0.5% D-65 + 2.0 Utonne D-81 at 1900 kg/m' slurry density. Plug down at 23:35. 97 06 19. Pulled 12 stands drillpipe to 1935 m KB. Reverse circulated two bottoms up. recovered 1.0 m' cement contaminated drilling mud. Circulating long way at report time while waiting on cement.

ESTIMATED COSTS: DAILY $

47 962 CUMULATIVE $ 8 500 507 SUPERVISOR C. Abel/D. Gaboury

Page No. 229

I

Good Date 97 06 21 °C Road Rig Day No. 207 Ralex. 1

ESTIMATED COSTS: DAILY $ 26 632 CUMULATIVE $ 8 527 139 SUPERVISOR D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Well

Clear Temp 18 GENOIL et al ST. LEONARD NO. 1

Depth 4037 FTD m Progress 0 m Hole Size

Mud: Wt kg/m' Visc. s/L W.L.

Methyl Blue Solids % Filter Cake

Desilter Underflow Wt._ kg/m' Rate

Desilter Overflow Wt. kg/m' Rate

Centrifuge Underfow Wt. kg/m'

155.6 mm Status Waiting on cernent cm3 pH PV mPa.s YP Pa Gels Pa mm Salt mg/L Cal. mg/L Umin Desander Underflow Wt. kg/m' Rate Umin Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD

Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m Coring 4

Jets - mm m 5 Cond. Hole

Wt. - daN m 6 Trips 4.75

rlmin m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig In - m Liner Length 9 Cut Off D.L. Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 1.50 13 Wait on Cmt 17.50

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Safety Mta 0.25 24 25

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Circulated and waited on cement. Laid down excess drillpipe. Ran open ended drillpipe and tagged Plua 3 at 2165 m KB with 2 000 daN strina weight at 12:00, 97 06 20. Tripped out, landed open ended drilloipe at 650 m KB. Held safety meeting. Ran Plug 4 650 m to 600 m KB with 3.2 tonnes (2.4 m3) Class "G" + 1.0% CaCI, + 0.5% D-65 at 1900 ka/m3 slurry density. Plug down at 14:30, 97 06 20. Pulled 11 stands drilloipe to 340 m KB. Reverse circulated two bottoms uo. recovered t0.3 m3 cement contaminated drilling fluid. Circulated lona way while waitina on cement. Laid down excess drillpipe. Ran open ended drillpipe and tagged Plug 4 at 600 m KB with 2000 daN string weight at 22:40. 97 06 20. Tripped out, landed open ended drillpipe at t19 rn KB, Headed up and displaced casing to fresh water. Ran Plua 5. 19 m to 10 m KB with 0.5 tonnes (0.4 m3) Class "G" + 1.0% CaCI, at 1900 kg/m3 slurry density. Plug down at 01:00. 97 06 21. Pulled and laid down drillpipe. WOC. Began tearing out well control equipment and cleaning mud tanks.

Page No. 230

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ESTIMATED COSTS: DAILY $ 84 778 CUMULATIVE $ 8 611 917 SUPERVISOR D. Gaboury

aBISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Raining Temp 19 °C Road Good Date 97 06 22

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex, 1 Day No. 208

Depth 4037 FTD m Progress 0 m Hole Size 155.6 mm Status Welding on cap

Mud: Wt kg/rn3 Visc. s/L W.L. cm3 pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt._ kg/m' Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m' Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS SURVEYS TIME DISTRIBUTION

Code/Operation Hours

No. m 1 RU & RD 3.00

Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m 4 Coring

Jets - mm m 5 Cond. Hole

Wt. - daN m 6 Trips r/min m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 1.00 13 Wait on Cmt 3.00

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 Tesco Unit 12.00 24 Clean Out 25 Collars & 26 Weld Caps 5.00

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) While waiting on Plug 5 to yield, finished tearing out well control equipment. Cleaned mud tanks. Rough cut casing bowl. Tore out and laid down too drive unit. Drained and flushed mud Dumps. Dug cellar to 1.5 m below around level. Cut off 508.0 mm OD conductor pipe, 339.7 mm OD surface casino and 244.5 mm OD intermediate 1.5 m below surface. NOTE: Plug 5 has yielded fully. Welded steel plate onto 224.5 mm OD and 339.7 mm OD casings. Continuing to do out and clean up drilling rig. Loading out rental equipment at report time.

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Cat.BISSETT RESOURCE CONSULTANTS LTD.

DAILY DRILLING REPORT

Weather Cloudy Temp 15 °C Road Good Date 97 06 23

Well GENOIL et al ST. LEONARD NO. 1 Rig Ralex. 1 Day No. 209

Depth m Progress m Hole Size mm Status Rig released

Mud: Wt kg/m' Visc. s/L W.L. cm' pH PV mPa.s YP Pa Gels Pa

Methyl Blue Solids % Filter Cake mm Salt mg/L Cal. mg/L

Desilter Underflow Wt. kg/m3 Rate Umin Desander Underflow Wt. kg/m' Rate Umin

Desilter Overflow Wt. kg/m3 Rate Umin Desander Overflow Wt. kg/m' Rate Umin

Centrifuge Underflow Wt. kg/m' Centrifuge Overflow Wt. kg/m'

BITS

No.

SURVEYS m

TIME DISTRIBUTION Code/Operation Hours 1 RU & RD 6.00

Size - mm m 2 Drill Actual

Type m 3 Reaming

S.N. m o4 Coring

Jets - mm m ° 5 Cond. Hole

Wt. - daN m 6 Trips

r/min m 7 Lubr. Rig

Out - m PUMP 8 Repair Rig

In - m Liner Length 9 Cut Off D.L.

Metres No. mm mm SPM 10 Dev. Survey

Hours 11 Wireline Log

Condition 12 Run Csg/Cmt 13 Wait on Cmt

DRILLING MUD ADDITIVES USED: HYDRAULIC 14 Nipple Up PP Output AV Power 15 Test BOP kPa Umin m/min kW 16 DST

17 Plug Back 18 Squeeze Cmt 19 Fishing

GEOLOGICAL SUMMARY: (Include formation tops, lithology and mud gas, if applicable) 20 Directional 21 Handle Tool 22 Clean to Btm 23 24 25 26

REMARKS: (Include cores, spud or rig release, casing, plugs, logs, hole problems, KB to GL, KB to CF, description of drill string, etc.) Coordinated loading trucks returning rental equipment. Finished tearing out and welding on abandonment plates on casings. Rig released at 12:00. 97 06 22,

Final Report STATUS: Dry and Abandoned

NOTE: At report time, there are approximately seven truck loads of rental equipment remaining to be shipped.

ESTIMATED COSTS: DAILY $ 11 690 CUMULATIVE $ 8 623 607 SUPERVISOR D. Gaboury

Page No. 232

MATERIALS USED:

WEATHER Clear TEMP 15 °C ROAD Good DATE 97 07 05 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-01 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 8.00 $60/hr $480 D3 Tractor 7.00 50/hr 350 Supervision - 525

TOTAL $1 355

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Moved on equipment. Began stripping and hauling gravel off the location. NOTE: Contractor agreed to salvage

gravel for ownership of gravel at no cost to Genoil. Undercut and restored flare pit area. Started cleaning gravel out of the landowner's ditch. Shut down for the night.

Estimated Costs: Daily $ 1 355 Cumulative $ 8 624 477 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

MATERIALS USED:

WEATHER Clear TEMP 14 °C ROAD Good DATE 97 07 06 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-02 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 9.00 $60/hr $540 D3 Tractor 9.00 50/hr 450 Supervision 525

TOTAL $1 515

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued stripping and hauling gravel off the location. Dug a ditch from sump "A" to landowners drainage ditch to drain the fluid. Scraped sand off location and pushed into the flare pit. Mixed fluid in flare pit with sand. Shut down for the night.

Estimated Costs: Daily $ 1 515 Cumulative $ 8 626 317 Supervisor: M. Durette

Page No. 234

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTDCI

f

MATERIALS USED:

WEATHER Clear TEMP 15 °C ROAD Good DATE 97 07 07

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-03

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 7.00 $60/hr $420 D3 Tractor 6.00 50/hr 300 Supervision 600

TOTAL $1 320

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued strippinq and hauling gravel off location. Fluid remaining in flare pit mixed with dry material and spread on location to dry. Flare pit backfilled with dry clay. Continued to strip sand off the location and stockpiled near sump. Shut down for the night.

Estimated Costs: Daily $ 1 320 Cumulative $ 8 627 637 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT 0.BISSETT RESOURCE CONSULTANTS LTD.

CONTRACTOR Excavation Claude Morin STATUS Restoring location

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 14 °C ROAD Good DATE 97 07 08

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-04

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 9.00 $60/hr $540

D3 Tractor 4.00 50/hr 200

Welding

Supervision

MATERIALS USED:

1.0 d - 800

1.0 d - 600

TOTAL $2 140

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued stripping and hauling gravel off the location. Pulled and recovered mouse and

rat hole casings. Filled rat hole and mouse hole with sand and clay. Continued to strip and pile sand near the sumps. Well capping and lease restoration progress was inspected and approved by Ministere des Ressources Nauterelles. Began mixing wet material in Sump 3 with the dry sand. Shut down for the night.

Estimated Costs: Daily $ 2 140 Cumulative $ 8 629 777 Supervisor: M. Durette

Page No. 236

Supervision

MATERIALS USED:

1.0 d 600

BISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT

WEATHER Clear TEMP 18 °C ROAD Good DATE 97 07 09

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-05

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 10.00 $60/hr $600 D3 Tractor 8.00 50/hr 400

TOTAL $1 600

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to strip and haul gravel off the location. Continued to strip and pile sand near the sumps. Continued mixing sand with wet material in Sump 3. Shut down for the night.

Estimated Costs: Daily $ 1 600 Cumulative $ 8 631 377 Supervisor: M. Durette

Page No. 237

Supervision

MATERIALS USED:

1.0 d 600

WEATHER Clear TEMP 16 °C ROAD Good DATE 97 07 10

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-06

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Excavator 312 10.00 $60/hr $600

Excavator 312B 10.00 60/hr 600

TOTAL $1 800

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued mixing dry sand with wet material in Sump 3. Shut down for the night.

Estimated Costs: Daily $ 1 800 Cumulative $ 8 633 177 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

Supervision

MATERIALS USED:

1.O d 600

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 17 °C ROAD Good DATE 97 07 11

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-07

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Excavator 312B 10.00 60/hr 600

TOTAL $1 860

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced the equipment. Continued mixing dry sand with wet material in Sump 3. Restoration is about 30% complete. Shut down for the night.

Estimated Costs: Daily $ 1 860 Cumulative $ 8 635 037 Supervisor: M. Durette

Page No. 239

WEATHER Cloudy TEMP 12 °C ROAD Good DATE 97 07 12

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-08 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 11.00 $60/hr $660 Excavator 312B 11.00 60/hr 660 Supervision

MATERIALS USED:

1.0 d 600

TOTAL $1 920

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced the equipment. Continued mixing dry sand with wet material in Sump 3. Spread mixture onto the location to dry. Started mixing dry sand with wet material in Sump 2. Shut down for the night.

Estimated Costs: Daily $ 1 920 Cumulative $ 8 636 957 Supervisor: M. Durette

Page No. 240

DAILY CONSTRUCTION REPORT

Cit,BISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 20 °C ROAD Good DATE 97 07 14

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-09

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Backhoe 11.00 60/hr 660

D3 Tractor 6.00 50/hr 300

Gravel truck 10-wheeler 7.00 90/hr 630

Supervision 1.0 d 600

MATERIALS USED:

TOTAL $2 850

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued mixing dry sand with wet material in Sump 2. Sump 3 is finished and backfilled. Continued to strip and pile sand near Sump 2. Shut down for the night.

Estimated Costs: Daily $ 2 850 Cumulative $ 8 639 807 Supervisor: M. Durette

Page No. 241

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 19 °C ROAD Good DATE 97 07 15

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-10

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Backhoe 11.00 60/hr 660

D3 Tractor 5.00 50/hr 250

Two Gravel trucks (10-wheeler) 6.00 45/hr 540 Supervision 1.0 d - 600

MATERIALS USED

TOTAL $2 710

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued mixing dry sand with wet material in Sump 2. Continued to strip and pile dry sand near Sump 2. Shut down for the night.

NOTE: Received lab analysis from fluid in Sump 1. Fluid is not toxic and suitable for pumping off.

Estimated Costs: Daily $ 2 710 Cumulative $ 8 642 517 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT C BISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 22 °C ROAD Good DATE 97 07 16

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-11

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Backhoe 11.00 60/hr 660 Two Gravel Trucks (10-wheeler) 9.00 45/hr 810 Supervision 1.0 d - 600

MATERIALS USED:

TOTAL $2 730

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Finished mixing dry sand with wet material in Sump 2. Started mixing dry sand with wet

material in Sump 1. Estimate restoration is approximately 60% complete. Shut down for the night.

Estimated Costs: Daily $ 2 730 Cumulative $ 8 645 247 Supervisor: M. Durette

Page No. 243

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. CI

WEATHER Clear TEMP 19 °C ROAD Good DATE 97 07 17

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-12

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Backhoe 11.00 60/hr 660 D3 Tractor 5.00 50/hr 250 Two Gravel Trucks (10-wheeler) 9.00 45/hr 810 Supervision 1.0 d 600

MATERIALS USED:

TOTAL $2 980

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued mixing dry sand with wet material in Sump 1. Continued to strip sand from the wellsite and pushed into piles near Sump 1. Shut down for the night.

Estimated Costs: Daily $ 2 980 Cumulative $ 8 648 227 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 10 °C ROAD Good DATE 97 07 19

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-13

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 11.00 $60/hr $660

Backhoe 11.00 60/hr 660

D3 Tractor 5.00 50/hr 250

Two Gravel Trucks (10-wheeler) 10.00 45/hr 900

Supervision 1.0 d 600

MATERIALS USED:

TOTAL $3 070

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued to mix dry sand and subsoil with wet material in Sump 1. Continued stripping

sand and subsoil near Sump 1 for mixing purposes. Shut down for the night.

Estimated Costs: Daily $ 3 070 Cumulative $ 8 651 297 Supervisor: M. Durette

Page No. 245

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 15 °C ROAD Good DATE 97 07 20 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-14 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 11.00 $60/hr $660 Backhoe 11.00 60/hr 660 D3 Tractor 5.00 50/hr 250 Two Gravel Trucks (10-wheeler) 7.00 45/hr 630 Supervision 1.0 d 600

MATERIALS USED:

TOTAL $2 800

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Finished mixing dry sand with wet material in Sump 1. Backfilled and capped Sump 1. Covered and landscaped Sumps 1, 2 and 3 area using subsoil. Suspended restoration operations until August 17, 1997. Landowner has been advised that operations have been shut down. Will finish restoration work beginning the week of August 18, 1997.

Estimated Costs: Daily $ 2 800 Cumulative $ 8 653 097 Supervisor: M. Durette

Page No. 246

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 12 °C ROAD Good DATE 97 08 19 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-15 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 192.00 $60/hr $11 520 D3 Tractor 19.00 50/hr 950 Gravel Trucks (10-wheeler) 83.00 45/hr 3 735 Supervision 2.0 d 1 200

MATERIALS USED: 145 loads of sand Cad $18.00 per load 2 610

TOTAL $20 015

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Period: July 24 through August 18, 1997

Continued to m ix sand with wet material and spread over lease to dry. Sump 2 area became soft because of

fluid content. Undercut and mixed with dry sand. Estimate lease reclamation is ±80% complete. Shut down for the night.

Estimated Costs: Daily $ 20 015 Cumulative $ 8 673 112 Supervisor: M. Durette

Page No. 247

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. Cil

WEATHER Clear TEMP 12 °C ROAD Good DATE 97 08 20

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-16

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 10.00 $60/hr $600

Gravel Truck (10-wheeler) 10.00 45/hr 450

Supervision 1.0 d 600

MATERIALS USED:

20 loads of sand at $18 per load 360

TOTAL $2 010

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to mix sand with wet material and spread over lease to dry. Shut down for the night.

Estimated Costs: Daily $ 2 010 Cumulative $ 8 675 122 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 17 °C ROAD Good DATE 97 08 21

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-17

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

Backhoe 10.00 $60/h $600 D3 Tractor 1.50 50/h 75 Gravel Truck (10-wheeler) 10.00 45/h 450 Supervision 1.0 d 600

MATERIALS USED:

21 loads of sand at $18 per load 378

TOTAL $2103

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued to mix dry sand with wet material and spread over the location to dry. Shut down for the night.

Estimated Costs: Daily $ 2 103 Cumulative $ 8 677 225 Supervisor: M. Durette

Page No. 249

DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. CI

WEATHER Cloudy TEMP 14 °C ROAD Good DATE 97 08 22

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-18

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 10.00 $60/h $600 Backhoe 10.00 60/h 600 Trucking (10-wheeler) 5.00 45/h 225 Supervision 1.0 d 600

MATERIALS USED:

10 loads of sand at $18 per load 180

TOTAL $2 205

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued mixing dry sand with wet material from the sump and spread over the location to dry. Hauled an additional 18 loads of sand onto the location for mixing purposes. Shut down for the night.

Estimated Costs: Daily $ 2 205 Cumulative $ 8 679 430 Supervisor: M. Durette

Page No. 250

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MATERIALS USED:

WEATHER Cloudy TEMP 16 °C ROAD Good DATE 97 08 23 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-19 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) Backhoe 5.00 $60/h $300 Loader 5.00 50/h 250 Supervision 1.0 d 600

TOTAL $1 150

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to mix wet drilling fluid saturated subsoil with dry sand and spread over location to dry. Shut down at 12:00, due to rain.

Estimated Costs: Daily $ 1 150 Cumulative $ 8 678 375 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT

BISSETT RESOURCE CONSULTANTS LTD. Cli

WEATHER Cloudy TEMP 14 °C ROAD Good DATE 97 08 24 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-20 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 10.00 $60/h $600 312B Backhoe 10.00 60/h 600 3 Gravel Trucks (10 wheeler) 30.00 45/h 1 350 Supervision 1.0 d 600

MATERIALS USED: 65 loads dry sand at $18 per load 1 170

TOTAL $4 320

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued to mix wet drilling fluid saturated subsoil with dry sand and spread mixture over the location to dry. Hauled 65 loads of sand and dumped on wellsite for mixing purposes. Shut down for the night.

Estimated Costs: Daily $ 4 320 Cumulative $ 8 682 695 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT CII BISSETT RESOURCE CONSULTANTS LTD.

CONTRACTOR Excavation Claude Morin STATUS Restoring location

Supervision 1.O d 600

WEATHER Clear TEMP 14 °C ROAD Good DATE 97 08 25 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-21

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 10.00 $60/h $600 312B Backhoe 10.00 60/h 600 3 Gravel Trucks (10 wheeler) 30.00 45/h 1 350

MATERIALS USED: 55 loads dry sand at $18 per load 990

TOTAL $4140

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued to mix wet drilling fluid saturated subsoil with dry sand and spread mixture over the location to dry. Hauled 55 loads of sand and dumped on wellsite for mixing purposes. Shut down for the night.

Estimated Costs: Daily $ 4 140 Cumulative $ 8 686 835 Supervisor: M. Durette

Page No. 253

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 12 °C ROAD Good DATE 97 08 26 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-22 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 12.00 $60/h $720 312B Backhoe 10.00 60/h 600 Gravel Truck (10 wheeler) 6.00 45/h 270 Supervision 1.0 d 600

MATERIALS USED: 10 loads sand at $18 per load 180

TOTAL $2 370

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued mixing drilling fluid saturated subsoil with dry sand and spread over the location to dry. Hauled additional dry sand onto the location for mixing purposes. Shut down for the night.

Estimated Costs: Daily $ 2 370 Cumulative $ 8 689 205 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 17 °C ROAD Good DATE 97 08 27 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-23 CONTRACTOR Excavation Claude Morin STATUS Restoring location

Estimated Costs: Daily $ 2 730 Cumulative $ 8 691 935 Supervisor: M. Durette

Page No. 255

MATERIALS USED:

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 13.00 $60/h $780 312B Backhoe 7.00 60/h 420 D3 Tractor 6.00 50/h 300 2 Gravel Trucks (10 wheeler) 7.00 45/h 630 Supervision 1.0 d 600

TOTAL $2 730

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Finished mixing wet subsoil contaminated with drilling fluid with dry sand. Spread same over the location to dry. Started spreading topsoil over the wellsite. Shut down for the night.

MATERIALS USED:

WEATHER Cloudy TEMP 16 °C ROAD Good DATE 97 08 28 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-24 CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 10.00 $60/h $600 D3 Tractor 10.00 50/h 500 3 - Gravel Trucks (10 wheeler) 30.00 45/h 1 350 Supervision 1.O d - 600

TOTAL $3 050

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued spreading topsoil over the location. Shut down for the night.

Estimated Costs: Daily $ 3 050 Cumulative $ 8 694 985 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 14 °C ROAD Good DATE 97 08 29 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-25 CONTRACTOR Excavation Claude Morin STATUS Restoring location

MATERIALS USED:

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 10.00 $60/h $600 D3 Tractor 10.00 50/h 500 3 - Gravel Trucks (10 wheeler) 27.00 45/h 1 210 Supervision 1.O d - 600

TOTAL $2 910

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.)

Serviced equipment. Continued spreading topsoil over the location. Shut down for the night.

Estimated Costs: Daily $ 2 910 Cumulative $ 8 697 895 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT 0.BISSETT RESOURCE CONSULTANTS LTD.

MATERIALS USED:

WEATHER Cloudy TEMP 15 °C ROAD Good DATE 97 08 30

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-26

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 10.00 $60/h $600 312B Backhoe 10.00 60/h 600 D3 Tractor 11.00 50/h 550 3 - Gravel Trucks (10 wheeler) 30.00 45/h 1 350 Supervision 1.0 d 600

TOTAL $3 700

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued spreading topsoil over the location. Approximately 99% complete. Shut down for the night.

Estimated Costs: Daily $ 3 700 Cumulative $ 8 701 595 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Cloudy TEMP 13 °C ROAD Good DATE 97 08 31

PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-27

CONTRACTOR Excavation Claude Morin STATUS Restoring location

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($)

312 Backhoe 12.50 $60/h $750

312B Backhoe 12.50 60/h 750 D3 Tractor 11.50 50/h 575 2 - Gravel Trucks (10 wheeler) 23.00 45/h 1 035 Supervision 1.O d - 600

MATERIALS USED:

TOTAL $3 710

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Continued spreading topsoil over the location. Shut down for the niqht.

Estimated Costs: Daily $ 3 710 Cumulative $ 8 805 305 Supervisor: M. Durette

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DAILY CONSTRUCTION REPORT aBISSETT RESOURCE CONSULTANTS LTD.

WEATHER Clear TEMP 14 °C ROAD Good DATE 97 09 01 PROJECT NAME GENOIL et al ST. LEONARD NO. 1 DAY NO. CU-28 CONTRACTOR Excavation Claude Morin STATUS Equipment released

Estimated Costs: Daily $ 2 900 Cumulative $ 8 808 205 Supervisor: M. Durette

Page No. 260

MATERIALS USED:

EQUIPMENT ON LOCATION:

Type/Model/Identification Hours Worked Rate Cost ($) 312 Backhoe 9.00 $60/h $540 312B Backhoe 9.00 60/h 540 D3 Tractor 10.00 50/h 500 2 - Gravel Trucks (10 wheeler) 16.00 45/h 720 Supervision 1.0 d 600

TOTAL $2 900

REMARKS: (Include last 24 hours progress, unusual condition, downtime, problems, etc.) Serviced equipment. Finished spreadinq topsoil. Levelled and landscaped location. Relocated culverts as requested by the landowner. Moved equipment off the location.

Reclamation Complete Final Report