Completion Procedure

Sills # 2

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Inland Ocean

Sills # 2

Victoria County

December 28, 2016

Completion Procedure

Present Status

Elevation:GL: 136.8’; KB: 143.8’; DF: 142.8’

KB Correction:7’

Surface Casing:85/8”,24#, J-55 STC set @ 821’

Intermediate Casing:N/A

Production Casing:4 ½“,10.5#, J-55 @ 5,349’

Total Depth:5,954’

Plug Back Depth:5,909’ ±

Packer :5080’ (Proposed)

Current Perforations:5182’ – 92’ (Proposed)

Directions to Location:(Sills # 1)Take hwy 87 north of of Victoria to Nursery. Turn right on Castillo road, cross RR track & turn right on Nursery Drive. Go 1/10 mile & take left on dirt road between houses & barns. Follow road along fence line that’s on your right. Go past last house on left & gravel yard on right, follow road & fence around to location in middle of field. (Sills # 2 directions pending) CONFIRM DIRECTIONS WITH INLAND OCEAN!!

Objective:Toestablish a commercial completion in the Yegua Formation

Proposed Procedure:

1. MI & RU workover rig. Bleed off pressure and load hole with field salt water.

2. RD tree and RU BOP’s and test. Unload, rack and tally 5500’ of new, 2 3/8” 8rd, 4.7#, J-55 EUE tubing.

3. Make up bit and scraper and RIH to 5300’± and circulate well clean.

4. POH with bit and scraper. MI & RU cased hole logging truck and run Radial CBL, GR, NL, VD, CCL from PBTD to 100’ above the top zone of interest. Additionally, run a strip 100’ below to 100’ above the surface casing shoe. If cement bond is suspect, rerun log with 1000 psi of pressure.

5.Make up redressed 4 ½” Arrowset 1X packer (or equivalent) and RIH. Set same at 5090’±. Test packer and casing to 1000 psi.

6. ND BOP’s and NU tree. Swab well down to 2000’. Confirm perforations with Inland’s office prior to building guns.

7. RIH with 1 11/16" Enerjet or equivalent and perforate from 5182'-92',with 4SPF, 0 degree phased and decentralized. POOH. RD wireline.

8. Flow test well. Swab if necessary. If commercial, install tank battery facilities.

9. Turn well over to gauger.

Prepared by:

J. R. Fischer, PE, General Manager

R. W. Dirks Petroleum Engineer, Inc.

Rig (4 days @ $4000/dy) / $16,000
Tubing Head and Tree / $9,000
Tubing ($3.50/Ft.) / $19,250
Rentals (Bit, csg scraper) / $750
Completion Fluid (2% KCl) / $1,500
Cased Hole Logging Services / $8,500
Packer / $4,500
Supervision (4 days) / $5,600
Contingencies (10%) / $6,500
Total / $71,600

Completion Logistics:

  1. Be sure and have all invoices made out to InlandOcean.

2. Tree - Coastal Bend Wellhead

Corpus Christi, Texas

361-883-7724

Jesse Moreno

361-443-9917 (cell)

3.Logging -P.L.P.S.

Roy Maxwell

361-572-9977 (Off)

361-319-0403 (Cell)

361-676-0938 (Cell 2)

4. Tubing-Watson Pipe

C.C., Texas

Jeff Watson

361-883-5217 (off)

5.Supplies -As Available

6.Packer -Texas Downhole Tools

Victoria, Texas

Stephen Tate

361-578-1123 (off)

7.Trucking -As Available

  1. Completion Fluid -As Available