27-033-05318

STATE Of NEVADA Las VC~}\S IJranrh: COMMISSION ON M1NERAL RESOURCES 1771 E. Flamill!;o Rd.

SuilL' I::!O-A DIVISION OF MINERALS I '" V '-'ga'. l\..:y"da xq II ()

400 W. King Street, Suite 106 (70') I -186-4:143 Fax (7()'},)4~6 ..n4S

Car."oll City, Nc\.'ada R9703

.Ili\l GlfHmr-.:S (TJ) 61\4-7040 Fax (77 5) 6f\4-7052 ,\L\r~ R. COY/I,ER

GOI':'rl/nr http://mjllefal~.s tatG.Jlv.lIs/ Administrator

January 30, 2007

Venessa Langmacher Plains Exploration & Production Company 14421 County Road 10 Fort Lupton, CO 80621

Re: Application for Permit to Drill Pluto 27-1, Permit 888

Dear Ms. Langmacher:

With this letter I am sending the signed copy ofthe original permit issued to Plains Exploration's for the Pluto 27-1 well. This permit was issued on January 30, 2007 and will expire on January 30, 2009 in the event that the well has not been drilled.

This permit is subject to conditions ofapproval, attached. During drilling, upon completion, and during production and/or injection ofwell, if applicable, submission ofcertain forms and other actions are required as described in the Oil and Gas Regulations and Rules ofPractice and Procedure, NAC 522. Copies of the forms and regulations can be found and downloaded from our web site at: minerals.state.nv.us.

If you have any questions regarding these matters, please contact Christy Morris at (775) 6847045. Thank you for your cooperation.

Sincerely, . ')(j{ " " "

(L. 4L~-::/:C~ L:/Jtt:2l't.:J-./ '

(~....../ Linda Wells Administrative Assistant IV

Enclosures

Cc: John Menghini, NSO BLM David Davis, Bureau of Mines & Geology

Commission on Mineral ResoUl'ces Hi,~'hM,l I 11.,1 ,!lit!": f.dn.!,c-.\Lalc tlil/iii,'; J(\hn Mudge: i argc-s..:nk r",Hning

I'.II! ido.: ''>;\~;')lll: (,'('mlwrll/ot /(cso/lU ('.~ F,..;;d n. (;ihsun~ Jr., ChainllHu: (';t'ncral Puhlir lkll P'drt'dlt. V. eh"i,.,: hpll,"

.111\1 GIHHfH\S (,"/l'('rnbr

La~ v(,gll~ Hrandl:STATE OF N EVADA 1771 E. Flamingo Rd.CO:\'livIlSSION ON MINERAL RESOURCES

SUlle fI I20-1\ DfV~SION OF MINERALS L1'; Vegas, r\t.:vada ~911

STATE OF NEVADA

COMMISSION ON MINERA l RESOURCES RECEIVED

DIVISION OF MINERALS 400 W. King Street, Suite 106 ]U.: 0 l 2006 Carson City, Nevada 89703

(775) 684-7040 Fax (775) 684-7052 .)\vision of Minerals

APPLICATION FOR PERMIT TO DRI LL AN OIL OR GAS WELL

(Application must be accompanied by $200 permit fee. Submit proposed drilling program with this application.) Company or Operator Plains Exploration and Production Company

Send permit to:

Street or P.O. Box 14421 County Road 10 City f()rt Lupton State -..::!C~O:.....-______

Zip 80621 Telephone 3031857-9999

Well No. 27-1 within the SW X .1if... y. SE Sec, 27 ,T. 18N ,R. 61E M.D.B.M.

Field Wildcat , County_Wl..I..Uhit!.lleot..JPwicu.nell

CONDITIONS OF APPROVAL AND GENERAL REMINDERS FOR THE

APPLICATION FOR PERMIT TO DRILL OIL & GAS WELLS

Operator: Plains Exploration and Production Company Lease: N-80835 Well: Pluto 27-1 Location: ~y.. SE y.., Sec. 27 , T. 18 N, R. E.

A COPY OF THIS MUST BE FURNISHED

TO YOUR FIELD REPRESENT A TIVE TO INSURE COMPLIANCE

Ag;ency Contacts BUREAU OF LAND MANAGEMENT NEVADA DIVISION OF MINERALS Nevada State Office Nevada Division of Minerals PO Box 12000 (1340 Financial Blvd) 400 W. King Street # 106 Reno NV. 89520-0006 Carson City, NY 89703 (775) 861-6400 (775) 684-7040

Petroleum Technician: Michael Tyler Oil, Gas and Geothermal Program Lead: 24 Hr. Telephones: (775) 289-1964 Christy Morris [email protected] Office Telephone: (775) 684-7045

Cell: (775) 721-1774 Petroleum Engineer: John Menghini Fax: (775) 684-7052 Office Telephone: (775) 861-6573 c [email protected] Cell: (775) 223-1359 [email protected] I. Approval ofthis APD does not warrant or certifY that the applicant holds legal or equitable title to those rights in the subject lease which would entitle the applicant to conduct operations thereon. In addition, approval ofthis APD does not imply that the operator has legal access to the drilling location. When crossing private surface 43 CFR 3814 regulations must be complied with and when crossing public surface off-lease the operator must have an approved right-of-way.

2. All operations shall conform to the Code of Federal Regulations, 43 CFR 3160, Bureau ofLand Management Onshore Orders and the Nevada Division of Minerals Oil and Gas chapter 522 Oil and Gas General Provisions.

3. A complete copy of the approved APD must be at the drill site during the construction of the roads and drill pad, the drilling of the well, and the completion of the well.

4. The spud date will be reported orally to the Authorized Officer 24 HOURS PRIOR TO SPUDDING, unless otherwise required in site specific conditions of approval.

5. Verbal notification shall be given to the Authorized Officer at least 24 hours in advance offormation tests, BOP tests, running and cementing casing (other than conductor casing), and drilling over lease expiration dates.

6. A progress report needs to be filed a minimum ofonce a week starting with the week the well was spud and continuing until the well is completed. This report may be by mail, fax or email. A complete set ofdaily drilling reports must be submitted upon completion of the well. The report will include the spud date, casing information such as size, grade, weight, hole size, and setting depth, amount and type of cement used, top of cement, depth of cementing tools, casing test method, intervals tested, perforated, acidized, fractured and results obtained and the dates all work done.

7. Deviation from the approved APD must receive prior approval. If you want to change your operations in any way, you must first receive approval from the BLM and from the NDOM.

8. Any information you desire to be held confidential must be clearly marked "CONFIDENTIAL "on each page.

9. All survey monuments found within the area of operations shall be protected. Survey monuments include, but are not limited to: General Land Office and Bureau of Land Management Cadastral Survey Comers, reference comers, witness points, U. S. Coast and Geodetic benchmarks and triangulation stations, military control monuments, and recognizable civil (both public and private) survey monuments. In the event ofobliteration or disturbance of any

Plains Exploration and Production Co. Pluto 27-1 survey monuments, the incident shall be reported in writing to the Authorized Officer.

10. If at any time the facilities located on public lands authorize

CONFIDENTIAL - TIGHT HOLE

ONSHORE OIL & GAS ORDER NO.1

Approval of Operations on Onshore

Federal and Indian Oil & Gas Leases

..

PXP Pluto #27-1

18651 FSL and 9051 FEL

NE SE Sec. 27 T1 8N - R61 E

White Pine County, Nevada

Prepared For:

PLAINS EXPLORATION AND PRODUCTION COMPANY

By:

PERMITCO INC. L 14421 County Road 10 :'\: \A()~

Ft. Lupton, Colorado 80621 \ :\\U~ . 303/857-9999 'to"'\\\~\.'

"'"..\U~\~ ,~.. \\\~y,~\1..,)

Copies Sent To:

3 - BLM - State Office - Reno, NV 1 - BLM - Ely, NV 1 - Dept. of Minerals - Carson City, NV 4 - Plains Exploration and Production Company - Houston, TX

PLAINS EXPLORATION & PRODUCTION COMPANY

PLUTO FEDERAL #27-1

LOCATED IN WHITE PINE COUNTY, NEVADA SECTION 27, T18N, R61E, M.D.M.

PHOTO: VIEW OF LOCATION STAKE CAMERA ANGLE: SOUTHWESTERLY

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: NORTHWESTERLY

t: .f, Uintah Engineering & Land Surveying PHOTO . 1::7_ 85 South 200 East Vernal, Utah 84078 -sU;ce i;M- ~ 435-789-1017 [email protected] TAKEN BY: J.F.

LOCATION PHOTOS

______________________________________________________

..

PLAINS EXPLORATION & PRODUCTION COMPANYT18Nt R61E, M,D,M,t Well location, PLUTO FEDERAL #27-1, located as shown in the NE 1/4 SE 1/4 of Section 27, T18N, R61E, M.D.M., White Pine County, Nevada.N89'47'W - 5268.12' (G.L.O.)

BASIS OF ELEVATION SPOT ELEVATION AT THE SOUTHEAST CORNER OF SECTION 27.

""'

_J

27 I

PLUTO FEDERAL #27-1 lev. Ungraded Ground = 7357' 90S'

L

'1.0 CD co .-

1922 8ra88 Cap, 1.5' High, PI/II

r-of Stonll8

T18N. R61E. M.D.M. TAKEN FROM THE ROBINSON SUMMIT. -i QUADRANGLE, NEVADA. WHITE PINE COUNTY. 7.5 MINUTE QUAD. o o (TOPOGRAPHIC MAP) PUBLISHED BY THE UNITED STATES'-'"

DEPARTMENT OF THE INTERIOR. GEOLOGICAL SURVEY. SAID 8 ELEVATION IS MARKED AS BEING 7305 FEET. s? CD BASIS OF BEARINGSN

BASIS OF BEARINGS IS A G.P.S. OBSERVATION. ........ ~ o 55.-J o

o

24. Attachments The following, completed in accordance with the requirements of Onshore Oil and Gas Order No.1, shall be attached to this form:

1. Well plat certified by a registered survey. Attached

2. A Drilling Plan

Plains Exploration & Production Co. proposes to dril r a well to 12,000' to test the Guilmette Limestone formation. If productive, an open hole completion will be done from 7200' 12,000'. If dry, the well will be plugged and abandoned as per BlM and State of Nevada requirements. See Onshore Order No.1 attached.

3. A Surface Use Plan (if the location is on National Forest System Lands, the SUPO shall be filed with the Appropriate Forest Service Office. Attached

4. Bond to cover the operations unless covered by an existing bond on file (see Item 20).

Nationwide BlM Bond No. WYB000296.

5. Operator cenification.

Plains Exploration & Production Co. has been designated by proper lease interest owners to conduct operations on the subject lands. Plains Exploration & Production Co. agrees to be responsible under the terms and conditions of the lease for the operations conducted on the leased lands.

6. Such other site specific information and/or plans as may be required by the authorized officer.

ONSHORE ORDER NO.1 Plains Exploration and Production Company PXP Pluto #271 1865' FSL and 905' FEL NE SE Sec. 27, T18N - R61E White Pine Coun,!y, Nevada

Confidential - Tight Hole

Lease No. NVN80835

DRILLING PROGRAM Page 1

ONSHORE OIL & GAS ORDER NO.1

Approval of Operations on Onshore

Federal and Indian Oil a nd Gas Leases

1. FORMATION TOPS OF IMPORTANT GEOLOGIC MARKERS

The estimated tops of important geologic markers are as follows:

I Formation I Deeth I Subsea I, Arcturus LSW 0' 7,356'

Rib Hill SS 1,600' 5,756'

ElyLS 3,100' 4,256'

i Chainman Shale-Stray Sands 5,600' 1,756'

IJoana Limestone 7,200' 156'

Pilot Shale 7,700' -344'

Guilmette Limestone 8,200' -844'

T.D. 12,000' -4,644'

2. ESTIMATED DEPTHS OF ANTICIPATED WATER, OIL, GAS OR MINERALS FORMATIONS:

The estimated depths at which the top and bottom of the antiCipated water, oil, gas or other mineral bearing formations are expected to be encountered are as follows:

II Substance I Formation I Dee.th Oil Chainman Shale &Stray Sands 5,600'

Oil Joana Limestone 7,200'

Oil Guilmette Limestone 8,200'

All shows of fresh water and minerals will be reported and protected.

ONSHORE ORDER NO. 1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto #27-1 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec. 27, T18N R61 E DRILLING PROGRAM White Pine Coun!y' Nevada Page 2

3. PRESSURE CONTROL EQUIPMENT: (SCHEMATIC ATTACHED)

Plains Exploration and Production Company's minimum specifications for pressure control equipment are as follows:

Ram Type: Hydraulic double w/annular - 5000 psi w.p.

Ram type preventers and associated equipment shall be tested to 3000 psi. Pressure shall be maintained for at least 10 minutes or until requirements of test are met, whichever is longer. If a test plug is utilized no bleed-off pressure is acceptable. For a test not utilizing a test plug, if a decline in pressure of more than 10 percent in 30 minutes occurs, the test shall be considered to have failed. Valve on casing head below test plug shall be open during test of BOP stack.

Annular type preventers (3000 psi) shall be tested to 50 percent of rated working pressure (1500 psi). Pressure shall be maintained at least 10 minutes or until provisions of test are met, whichever is longer.

As a minimum, the above test shall be performed: a. when initially installed; b. whenever any seal subject to test pressure is broken c. following related repairs; and d. at 30-day intervals

Valves shall be tested from working pressure side during BOPE tests with all down stream valves

open.

When testing the kill line valve(s) the check valve shall be held open or the ball removed.

Annular preventers shall be functionally operated at least weekly.

Pipe and blind rams shall be activated each trip. however, this function need not be perforrned more

than once a day.

A BOPE pit level drill shall be conducted weekly for each drilling crew.

Pressure tests shall apply to all related well control equipment.

All of the above described tests and/or drills shall be recorded in the drilling log.

* Revised 1-12-07

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto #271 Lease No. NVN80835 1865' FSL and 90S' FEL NE SE Sec. 27, T18N - R61 E DRILLING PROGRAM White Pine Coun!y, Nevada Page 3

The choke manifold, BOP extension rods and hand wheels will be located outside the substructure. The hydraulic BOP closing unit will be located at least 100 feet from the well head, with the remote control unit on the rig floor. The casing head and BOP will be flanged 5,000 psi w.p. Kill line will be 2M Ld. with burst pressure rating of 5,000 psi. These items will be pressure tested concurrently with BOP's. The BOP will be tested when the stack is first installed on the well. It will also be tested at each casing shoe and at least every 30 days. BOP and choke manifold sizes will be in accordance with API-RP-53 as per the attached. See attached schematic of choke manifold.

a. The size and rating of the BOP stack is shown on the attached diagram.

b. A choke line and a kill line are to be properly installed. The kill line is not to be used as a fill-up line.

c. The accumulator system shall have a pressure capacity to provide for repeated operation of hydraulic preventers.

d. Drill string safety valve(s), to fit all drill string connections in use, are to be maintained on the rig floor while drilling operations are in progress.

4. PROPOSED CASING AND CEMENTING PROGRAMS:

a. The proposed casing and cementing program shall be conducted as approved to protect and/or isolate all usable water zones, potentially productive zones, lost circulation zones, abnormally pressured zones, and any prospectively valuable deposits of minerals. Any isolating medium other than cement shall receive approval prior to use. The casing setting depth shall be calculated to position the casing seat opposite a competent formation which will contain the maximum pressure to which it will be exposed during normal drilling operations. Determination of casing setting depth shall be based on all relevant factors, including; presence/absence of hydrocarbons; fracture gradients; usable water zones; formation pressures; lost circulation zones; other minerals; or other unusual characteristics. All indications of usable water shall be reported.

b. Casing design shall assume formation pressure gradients of 0.44 to 0.5 psi per foot for exploratory wells (lacking better data).

c. Casing design shall assume fracture gradients from 0.70 to 1.00 psi per foot for exploratory wells (lacking better data).

k Revised 1-12-07

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto #27-1 Lease No. NVN-80835 1865' FSL and 90S' FEL NE SE Sec. 27, T18N R61E DRILLING PROGRAM White Pine Coun~, Nevada Page 4

d. Casing collars shall have aminimum clearance of 0.422 inches of all sides in the hole/casing annulus, with recognition that variances can be granted for justified exceptions.

e. All waiting on cement times shall be adequate to achieve aminimum of 500 psi compressive strength at the casing shoe prior to drilling out.

f. All casing except the conductor casing, shall be new casing that meets or exceeds API standards for new casing.

g. The surface casing shall be cemented back to surface either during the primary cement job or by remedial cementing.

h. All indications of usable water shall be reported to the authorized officer prior to running the next string of casing or before plugging orders are requested, whichever occurs first.

i. Surface casing shall have centralizers run as follows: 1on the shoe joint, 1on the first collar from the bottom and 1on the second collar.

j. Top plugs shall be used to reduce contamination of cement by displacement fluid. Abottom plug or other acceptable technique, such as a suitable preflush fluid, inner string cement method, etc. shall be utilized to help isolate the cement from contamination by the mud fluid being displaced ahead of the cement slu rry.

k. All caSing strings below the conductor shall be pressure tested to 0.22 psi per foot of casing string length or 1500 psi, whichever is greater, but not to exceed 70 percent of the minimum internal yield. If pressure declines more than 10 percent in 30 minutes, corrective action shall betaken.

I. On all exploratory wells, and on that portion of any well approved for a5M BOPE system or greater, apressure integrity test of each casing shoe shall be performed. Formation at the shoe shall be tested to a minimum of trle mud weight equivalent anticipated to control the formation pressure to the next casing depth or at total depth of the well. This test shall be performed before drilling more than 20 feet of new hole.

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto #271 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27, T18N - R61E DRILLING PROGRAM White Pine Coun!y, Nevada Page 5

m. The proposed casing program will be as follows:

Purpose Depth Hole Size D.D. Weight Grade Type New/Used Conductor 60' 17-1/2" RHM 20" 1/4" Wall B P.E. New

Surface 1,200' 17-1/2" 13-3/8" 54.5 J--55 STC New

Intermediate 7,250' 12-1/4" 9-5/8" 40# HCN-80 LTC New

Production 12,000' 8-3/4" 7,250' 12,000' Open-hole Completion

/

n. Casing design subject to revision based on geologic conditions encountered.

o. The cement program will be as follows:

I Surface TOC @ Surface

Production

TOC @ 6,250' RKB or 500' above any

logged hydrocarbon

I TYJ!.e and Amount Lead: 652 sx 35:65 Poz/G, 6% Gel, 1gps defoamer, 13.6 ppg, 1.53 cu ftlsk. Tail: 321 sx Class G, 1gps defoamer, 0.3% dispersant,15.8 ppg, 1.15 cu ftlsk.

Type and Amount

349 sx Class G, 1gps defoamer, 1 % fluid loss additive, 0.3% dispersant, 0.2% extender and 0.4% retarder, 15.8 ppg, 1.16 cu ftlsk.

I

p. After cementing but before commencing any test, the casing string shall stand cemented until the cement has reached acompressive strength of at least 500 psi at the shoe, except that in no case shall test be initiated until the cement has been in place at least 12 hours. WOC ./ time shall be recorded in the drillers log.

q. The following reports shall be filed with the District Manager within 30 days after the work is completed.

1. Progress reports, Form 3160-5 (formerly 9-331) "Sundry Notices and Reports on Wells", must include complete information concerning:?;~

'/ )

ONSHORE ORDER NO.1 Confidential - Tight Hole Plains Exploration and Production Company PXP Pluto #27-1 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec. 27, T18N - R61E DRILLING PROGRAM White Pine Coun!y, Nevada Page 6

a. Setting of each string of casing, showing the size, grade, weight of casing set, hole size, setting depth, amounts and type of cement used, whether cement circulated or the top of the cement behind the casing, depth of cementing tools used, casing test method and results, and the date work was done. Spud date wi II be shown on the first reports submitted. i j ... ,

b. Temperature or bond logs will be submitted if the surface casing cement is not circulated to the surface.

r. Auxiliary equipment to be used is as follows:

1. Kelly cock - rated to the Ram Preventer working pressure.

2. No bit float is deemed necessary.

3. Full opening safety valve - rated to the Ram Preventer working pressure.

5. MUD PROGRAM:

a. The proposed circulating mediums to be employed in drilling are as follows:

I Interval I Mud Type I Mud wt. I Visco I FIL I PH I 0-1,200' Spud (GellLime) 8.6-9.0 38-50 N/C 8.0-9.5

1,200'-7,250' LSND/Polymer 8.8-9.0 38-50 25-12 8.0-8.5

7,250'-12,000' LSND/Polymer 8.8-9.0 38-50 12-8 8.0-8.5

There will be sufficient mud material on location to maintain hydrostatic control of the formations ~ encountered at all times.

A mud test shall be performed every 24 hours after mudding up to determine, as applicable: density, viscosity, gel strength, filtration, and pH.

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto #271 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec. 27, T18N R61 E DRILLING PROGRAM White Pine Coun!y, Nevada Page 7

b. Mud monitoring equipment to be used is as follows:

1. Periodic checks will be made each tour of the mud system. The mud level will be checked visually.

c. The concentration of hazardous substances in the reserve pit at the time of pit backfilling must not exceed the standards set forth in the Comprehensive Environmental Response, Compensation, and liability Act of 1980 (CERCLA).

d. All oil and gas drilling related CERCLA hazardous wastes/substances removed from a location and not reused at another drilling location must be disposed of at an EPA approved hazardous waste facility.

6. EVALUATION PROGRAM:

The antiCipated type and amount of testing, logging and coring are as follows:

a. Drtll stem tests will be run as needed. If drill stem tests are run, following will be adhered to:

Initial opening of drill stem test tools shall be restricted to daylight hours unless specific approval to start during other hours is obtained from the authorized officer. However, DST's may be allowed to continue at night if the test was initiated during daylight hours and the rate of flow is stabilized and if adequate lighting is available (Le. lighting which is adequate for visibility and vapor-proof for safe operations). Packers can be released, buttripping shall not begin before daylight, unless prior approval is obtained from the authorized officer. Closed chamber DSTs may be accomplished day or night.

ADST that flows to the surface with evidence of hydrocarbons shall be either reversed out of the testing strtng under controlled surface conditions, or displaced into the formation prior to pulling the test tool. This would involve provided some means for reverse circulation.

Separation equipment required forthe anticipated recovery shall be properly installed before a test starts.

All engines within 100 feet of the wellbore that are required to "run" during the test shalf have spark arresters or water cooled exhausts.

ONSHORE ORDER NO.1 Confidential - Tight Hole Plains Exploration and Production Company PXP Pluto #27-1 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27, T18N - R61 E DRILLING PROGRAM White Pine Coun!y, Nevada Page 8

b. The logging program will consist of aTri pie Combo to be run from 1,200' SCP to TO. I

c. Cores are anticipated between 8,200' to TO in the Guilmette Limestone formation, (possible 5(I ~ w,j 50 rotary sidewall cores).

I'' -' J

i ; ~d. The anticipated completion program is as follows:

Open hole completion with packer, tubin 9 and seating nipple(s}. Possible acid stimulation. In the event that water is encountered in the open hole interval, PXP may elect to run and cement a4-1/2" production liner that will require perforating.

7. ABNORMAL TEMPERATURES OR PRESSURES:

a. The maximum anticipated bottom hole pressure is estimated at approximately 6,000 psi (calculated at 0.5 psVfoot for 12,000' planned TO) resulting in a calculated maximum anticipated surface pressure {MASP} of approximately 3400 psi based upon a partially evacuated hole at TO with an average fluid gradient of 0.22 psilfoot. (4.23 ppg EMW)

b. No hydrogen sulfide gas is anticipated during drilling, however the logging unit will have an H2S detector for monitoring purposes.

8. ANTICIPATED STARTING DATES AND NOTIFICATION OF OPERATIONS:

a. Drilling is anticipated to commence approximately April, 2007. Completion is anticipated to begin within 30 days of drilling rig release.

b. It is anticipated that the drilling of this well will take approximately 30 days.

c. The following shall be entered on the driller's log:

1. Blowout preventer pressure tests, including test pressures and results;

2. Blowout preventer tests for proper functioning;

3. Blowout prevention drills conducted;

4. Casing run, including size, grade, weight, and depth set;

ONSHORE ORDER NO. 1 G9nfidential Tight Hole . Plains Exploration and Production Company

PXP Pluto '27-1 Lease No. NVN-80835 1865' FSL and 905' FEl NE SE Sec. 27, T18N - R61E OBJLLJNG PROGRAM White Pine ~ Nevada Page 9

5. How the pipe was cemented, inciliding amount of cement, type, whether cement circulated, location of the cementing tools, etc.

6. Waiting on cement time for each casing string.

7. Casing pressure tests after cementing, including test pressures and results.

d. Section 102 (b) (3) of the Federal Oil and Gas Royalty Management Act of 1982, as implemented by the applicable provision of the operating regulations at Title 43 CFR 3162.41 @), requires that -not later than the 5th business day after any well begins production on which royalty is due anywhere on the lease site or allocated to a \ease site, or resumes production in the case of a well which has been off production for more than 90 days. the operator shall notify the authorized officer by letter or sundry notice, Forms 316(}S or orally to be followed by aletter or sundry notice, of the date on which such production has begun or resumed."

The date on which production is commenced or resumed will be construed for oil wells as the date on which liquid hydrocarbons are first sold or shipped from a temporary storage facility, such as a test tank, and for which a run ticket IS required to be generated or, the date on which liquid hydrocarbons are first produced into apermanent storage facility. whichever first occurs; and, for gas sales as the date on which associated liquid hydrocarbons are first sold or shipped from a temporary storage facility, such as a test tank, and for which a run ticket is required to be generated or, the date on which gas is first measured through permanent metering facilties, whichever first occurs.

" the operator fails to comply with this requirements in the manner and lime allowed, the operator shall be liable for a civil penalty of up to $10,000 per violation for each day such violation continues. not to exceed a maximum of 20 days. See Section 109 @) (3) of the Federal on and Gas Royalty Management Act of 1982 and the implementing regulations at Trtle 43 CFR 3163.4-1 (b) (5) (ii).

e. Notifications Requirements:

"1. The BlM in Ely, Nevada (775-289-1964 Michael Tyter - Inspector) will be notified verbally not more than 48 hours before the well is spudded, or on the next regular workday..

2. The BLM will be notified verbally at least 48 hours prior to running/cementing surface casing

.. Revised 19-07

ONSHORE ORDER NO.1 Confidential - Tight Hole Plains Exploration and Production Company PXP Pluto #271 Lease No. NVN80835 1865' FSL and 90S' FEL NE SE Sec. 27, T18N - R61 E DRILLING PROGRAM White Pine Coun,!y, Nevada Pa}le 10

3. For verbal plugging orders on drilling locations, the BLM will be notHied 24 hours prior to plugging. I i'l

The following standards apply to the abandonment of newly drilled dry or non-productive wells in accordance with 43 CFR 3162.3-4. Approval shall be obtained prior to the commencement of abandonment. All formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected. Approval may be given orally by the authorized officer before abandonment operations are initiated. This oral request and approval shall be followed by awritten notice of intent to abandon filed not later than the fifth busine 5S day following oral approval. Failure to obtain approval prior to commencement of abandonment operations shall result in immediate assessment under 43 CFR 3153.1 (b)(3). The hole shall be in static condition at the time any plugs are placed (this does not pertain to plugging lost circulation zones). Within 30 days of completion of abandonment, a subsequent report of abandonment shall be filed.

BOPE 0 iagram PXP Pluto 27-1Plains Exploration & Production Co. Minimum Requirements ()ti cl..,-f-'Y'1 / / fr::) ,/D ?

Fillup Line

Flowline

13-5/8" 3M

Annular

13-5/8" 5M Double Rams

2" 5M Kill Line

13-5/8" 3M X 13-518" 5M Combination spool

13-3/8" SOW X 13-5/8 3M psi Braden Head

2" 5M Choke Line

Adjustable Choke with Possible Upgrade to To mud tanks Remote Hydraulic Choke 2"

Blowout Preventer Stack . Mud Gas Separator Outlet (Choke Line) 3-1/16"

Adjustable Choke with

Possible Upgrade to Flare line

Remote Hydraulic Choke 2"

5M psi Choke Manifold (Typical)

".

.1---n......

"iii :g o

BOPE DiagramPlains Exploration & Production Co. PXP Pluto 27-1 Initial Nipple-up Minimum Requirements

Fillup Line

Flowline

13-S/8" 3M

Annular

13-S/8" 5M Double Rams

2" SM Kill Line 2" SM Choke Line

Adjustable Choke with Possible Upgrade to I To mud tanks Remote Hydraulic Choke 2"rorm'c

~ Blowout Preventer Stack I Mud Gas Separator

...nO

.....

0

F'Outlet (Choke Line) 3-1/16" "'iii c: 0 a

Adjustable Choke with M Possible Upgrade to H I=M1 ~, Flare line Remote Hydraulic Choke 2"


BOPE Diagram pXP Pluto 27-1 Second Nipple upPlains Exploration & Production Co. Minimum Req uirements

Fillup Line

Flowline

13-5/8" 3M

Annular

13-5/8" SM Double Rams

2" SM Kill Line

Adjustable Choke with Possible Upgrade to Remote Hydraulic Choke

Blowout Preventer Stack I ==ao; Outlet (Choke Line)

Adjustable Choke with Possible Upgrade to Remote Hydraulic Choke

2" SM Choke Line

13-3/8" 54.5 ppf J-SS ST&C ~ __ : 9-5/8" 40 ppf HCN-80 L T&C

:::nxtJ I To mud tanks 2"

o

.,l.--n..A i i Mud Gas Separator

(ij l:: o ;;

3-1/16"

Flare line 2"


~ON AND PRODUCTION COMPANY )plemental Information

hite Pine Total Depth: 12,000' Well Type: Exploratory

Elevation: 7,460' GL Lease Number: NVN-S0835

Casing Conn.

Casing Burst Rating

psi

Wellhead Flange Rating

psi

Casing Test psi

BOP Size Inch

BOP Rated Working Pressure Ramsl Annular

BOP Test Pressures

Ramsl Annular

PE NA NA N/A

STC 2730 3,000 1500 133/8 5,000/3,000 3,000/1,500

LTC 5750 5,000 1600 133/8 5,000/3,000 3,000/1,500

TBD TBD TBD TBD 133/8 5,000/3,000 3,000/1,500

500 psi, not to exceed 70% of the casing's burst rating. 1t of 0.44 psil ft (8.46 ppg EMW). a 0.22 psil ft (4.23 ppg) evacuated gradient to surface

string of casing. . ;ted to the BOPs rated working pressure or 70% of the affected casing's burst rating in the

,

lUMBER r 713579-6036 CONTACT EMAIL [[email protected] f'<

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ONSHORE ORDER NO.1 Confidential - Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N R61E SURFACE USE PLAN White Pine Coun!y, Nevada Page 1

ONSHORE OIL &GAS ORDER NO.1 Approval of Operations on Onshore

Federal and Indian Oil and Gas Leases

The onsite inspection for the sub1ect well was conducted on Thursday, October 12, 2006 at approximately 8:30 a.m. Weather conditions were clear, cool and sunny. In attendance at the onsite inspection were the following individuals:

Bill Wilson Geologist Bureau of Land Management Lisa Gilbert Archeologist Technician Bureau of Land Management Michael Tyler Petroleum Engineering Tech Bureau of Land Management Dave Jeppesen Visual and Rec Specialist Bureau of Land Management Mark Lowry Range Specialist Bureau of Land Management John Longinetti Range Conservationist Bureau of Land Management John Floyd Surveyor Uintah Eng. and Land Surveying Steve Hopkins Drilling and Operations Engineer Plains Exploration & Production Lisa Smit~1 Permitting Agent Permitco Inc. Randy Smrth Permitting Agent Permitco Inc. David Gibson Dirt Contractor

1. EXISTING ROADS

a. Directions to the location from Ely, Nevada are as follows:

Proceed westerly on Highway 50 for 15.5 miles. Turn left onto an existing road and proceed westerly 0.3 miles. Tum right onto the proposed access road and proceed southerly for 0.3 miles to the proposed wellsite.

b. For access roads, see Maps Aand B attached.

c. All existing roads within a 1-mile radius are shown on Map B.

d. Vehicles will travel only on deSignated travel ways shown on the map.

e. Existing roads will be maintained and kept in good repair during all drilling and completion operations associated with this well.

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto 27N 1 Lease No. NVN80835 1865' FSL and 9051 FEL NE SE Sec. 27T18N - R61E SURFACE USE PLAN White Pine Coun!y, Nevada Page 2

f. Ali proposed access roads are within the lease boundary and a road right of way will not be necessary.

2. ACCESS ROADS TO BE CONSTRUCTED AND RECONSTRUCTED

a. There will be approximately 0.3 miles of existing access road to be upgraded and 0.3 miles of new access to be constructed.

b. The new access road will be constructed as a flat bladed road. Surfacing material will be placed along the new access to a depth of approximately 4 inches. The running surface of the road will be a minimum of 14 feet with a maximum disturbed width of 32 feet.

c. Approximately 2or 3turnouts will be constructed along the proposed route to allow traffic to pass safely.

d. Where the approach leaves Highway 50, it will be modified to meet NDOT standards. The approach will meet the highway at a 90 degree angle. For the protection of the Old Lincoln Highway (which parallels Highway 50 on the west side), the approach will be constructed by placing a minimum of 4" of fill material over the Old Highway road bed. This will prevent damage to the old road bed. In addition - approximately 6 inches of gravel will be placed on the fill material covering the Old Lincoln Highway. No topsoil will be removed from the old road bed.

e. After the road crosses through the Highway fence line -the remainder of the road construction will include salvaging the top 12" of topSOil in a windrow along the edge of the road and immediately seeding it with the same interim seed mixture as used for the pad. Reclamation will be similar to that for the location pad: regarding, ripping the road surface, recovering with the salvaged topsoil, and final seeding.

f. Gravel used for pad or access road construction may be placed only after the underlying topsoil has been salvaged. It may be removed prior to regrading and ripping or left to be incorporated in the reclamation procedures outlined above.

g. Culverts, when deemed necessary by the location contractor, will be installed during construction.

ONSHORE ORDER NO. 1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N - R61 E SURFACE USE PLAN White Pine Coun!y, Nevada Page 3

h. The existing gate in the Highway fence line will be replaced with acattle guard to meet NDOT standards. If requested by the BLM, agate will be constructed adjacent to the cattle guard.

i. If production is established, the road to the tank battery site will be upgraded and graveled as necessary to provide for all weather use.

j. Surface disturbance and vehicular travel will be limited to the approved location, tank battery site and approved access road. Any additional area needed will be approved in advance.

3. LOCATION OF EXISTING WELLS WITHIN A l-MILE RADIUS OF THE PROPOSED LOCATION.

a. Water Wells - none

b. Injection or Disposal Wells -none

c. Producing Wells - none

d. Drilling Wells - none

4. LOCATION OF EXISTING AND/OR PROPOSED FACILITIES IF THE WELL IS PRODUCTIVE.

a. If production is established, aproduction facility layout will be submitted via Sundry Notice at that time. Anticipated production is not known at this time.

b. All production facilities, including the pump, pump house, storage tanks, and treater will be painted an earthtone color to blend with the environment.

c. All flowlines from the well site to battery site will be buried below frost line depth (approximately 48 inches).

d. Adike will be constructed completely around trle production facilities (I.e. production tanks, water tanks, and/or heater-treater). The dikes for the production facilities will be constructed of compacted subsoil and hold the capacity of the largest tank.

ONSHORE ORDER NO.1 Plains Exploration and Production Company PXP Pluto 271 1865' FSl and 90S' FEl NE SE Sec. 27 T18N - R61 E White Pine Coun,!y, Nevada

Confidential Tight Hole

Lease No. NVN-80835

SURFACE USE PLAN Page 4

e. Produced hydrocarbons shall be put in test tanks on location during completion work.

f. All site security guidelines identified in 43 CFR 3162.7 regulations will be adhered to.

5. LOCATION AND TYPE OF WATER SUPPLY

a. Produced water for drilling purposes will be obtained from awater well to be drilled on the well pad, at the south end of the reserve pit.

b. All appropriate permits will be filed by the water well driller.

c. The well will be turned over to the Bureau of land Management at the end of drilling operations for their continued use for wildlife and stock grazing purposes.

d. A water well may be accepted by the Ely District upon completion of operations. Please submit the following information to the Ely District Office, Bureau of land Management, HC 33, Box 33500, Ely, NV 89301-9408:

1. Profile 1Water Analysis 2. Type of inside diameter of casing used in well 3. Total depth of well 4. Depth of concrete seal 5. Depth of static water level 6. Water bearing formation or description of aquifer

e. Operator requests that BlM allow operator to use water well for future well drilling, completion, or rework activities in the area.

6. CONSTRUCTION MATERIALS

a. If additional gravel is needed (other than that found in the access road or wellpad), then it will be purchased from apermitted BlM gravel pit or local private source.

ONSHORE ORDER NO.1 Confidential- Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N R61 E SURFACE USE PLAN White Pine Coun!y, Nevada Page 5

b. No construction materials will be removed from Federal lands unless previously authorized.

c. All gravel pit permits will be filed with the BLM by the dirt contractor.

7. METHODS FOR HANDLING WASTE DISPOSAL

a. Drill cuttings are to be contained and buried in the reserve pit.

b. The rnud tanks will be emptied into the reserve pit. The reserve pit and drilling fluids contained in the pit will be allowed to dry before backfilling, or pas will be siphoned out and dispOsed of in amanner approved by the authorized officer of the BLM before the reserve pit is backfilled. Pit walls will not be breeched so as to drain fluids to the surrounding surface.

c. All wastes that accumulate during the drill ing operations will be contained in atrash cage or dumpster. Wastes will be removed periodically from the location and taken to an approved landfill.

d. Immediately after removal of the drilling rig, all garbage (metal containers, etc.) and debris on the site will be removed from the site. The reserve pit will not be utilized for trash disposal.

e. No burning of trash will be allowed.

f. Chemical toilets with holding tanks will be utilized. All sewage will be disposed of in accordance with county and state regulations. The permittee will comply with all state laws and regulations pertaining to disposal of human waste.

g. The produced fluids will be produced into a test tank until such time as construction of production facilities is completed. Any spills of oil, gas salt water or other produced fluids will be cleaned up and removed.

8. ANCILLARY FACILITIES

Atemporary camp may be located on site to house drilling and completion crews during operations. However, due to the close proximity to Ely, crews will be housed in local motels.

ONSHORE ORDER NO. 1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto 27-1 Lease No. NVN-80835 1865' FSL and 905' FEL NE SE Sec, 27T18N - R61E SURFACE USE PLAN White Pine Coun!y. Nevada Page 6

9. WELLSITE LAYOUT

a. Prior to any removal of topsoil along the access road or on the wellpad, snow will be removed and stockpiled adjacent to the road bed Dr well pad.

b. Any large trees will be cut prior to construction. The remainder of the trees will be pushed off and stockpiled adjacent to the wellpad. These trees will be saved for use in final reclamation.

c. The operator will be responsible for taking steps to mitigate the spread or increased densities of invasive weeds that result from implementation of the proposed action. The operator will implement the Ely Field Office Noxious Weed Prevention Schedule and SOPs for weed treatments, with special emphasis on the following actions. Prior to entering the site, all construction, drilling equipment, and vehicles will be washed down and cleaned to prevent the importation of noxious weed seeds from prior places of work. Vehicles will stay on roads and avoid driving through any weed patched. All seeds used in reclamation will be certified weed-free. The operator will assist in monitoring for noxious and invasive weeds during the life of the project, until reclamation is complete.

d. The top 12" of topsoil, where available. from pad construction will be salvaged, stockpiled separately from any other material. The topsoil will be seeded immediately with the interim seed mix in order to stabilize the soil and help preventthe establishment of invasive and nonnative weeds. An additional interim seeding may be required.

e. Cut slopes and fill slopes will be no steeper than 2:1.

f. Cuts and fills and cross sections are also shown on the location layout.

g. The location of the reserve pit, with respect to the pad and other facilities is shown on the location layout.

h. A12 mil plastic liner will be installed in the reserve pit to prevent loss of drilling fluids through seepage.

i. For the protection of livestock and wildlife, all pits containing toxic liquids will be fenced with 3-strands of barbed wire with one strand of smooth wire on the bottom. For the protection of migrating waterfowl, the pits will be flagged overhead during migration periods. Any oil on

ONSHORE ORDER NO.1 Confidential - Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N - R61 E SURFACE USE PLAN White Pine Coun!y, Nevada Page 7

the surface of the pit will be burned off, or otherwise removed. In addition, white flagging will be tied on the top wire of the reserve pit fencing.

10. RECLAMATION OF SURFACE

a. The rathole and mousehole will be filled in immediately after the rig is removed.

b. Interim seeding will be done as soon as possible on any topsoil piles or windrow piles. A seed mixture for interim reclamation will be provided by the BLM.

b. Pad reclamation will consist of recontourin g, ripping, re-spreading the topsoil, and reseeding with the final seed mixture which should be planted between October 1 and March 15. Performance standards for revegetation success are that the reclaimed area will have at least 100% oft the perennial canopy cover of the existing adjacent plant cover. The site will be evaluated by the Ely BLM for vegetative progress after at least one full growing season. If not successful, the BLM reclamation specialist will review the reclamation procedures with the operator to decide on the best course of action to achieve success.

c. The operator or his contractor will contact the Bureau of Land Management in Ely, Nevada (775) 289-1800, 48 hours prior to commence of site reclamation work and upon completion of restoration measures.

d. All disturbed areas will be recontoured to conform as near as possible to the natural contour. This includes removing all berms and backfilling all cuts.

e. All disturbed areas will be ripped in both directions (criss-cross) to break up the compacted soils. The stockpiled topsoil will be evenly spread over the disturbed area.

f. The operator will be responsible for complete control of any noxious weeds that become established within the project area during the life of this project through final reclamation. This would include the responsibility for control of noxious weeds along the access roads, pad location, and any water and gravel sources.

g. Noxious and invasive weeds, which may be introduced due to soil disturbance and reclamation, will be treated by methods to be approved by the authorized officer. These methods may include biological, mechanical, cultural or chemical. Should chemical methods be approved, the lessee must submit a Pesticide Use Proposal to the authorized officer 60

ONSHORE ORDER NO. 1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N - R61 E SURFACE USE PLAN White Pine Coun!y, Nevada Page 8

days prior to the planned application date. All BLM and Ely Field Office SOPs for weed treatments will be complied with. Copies of al\ Pesticide Application Reports will be provided to the Ely Field Office Weed Coordinator and to the Nevada Department of Agriculture.

h. ANotice of Intent to Abandon and a Subsequent Report of Abandonment will be submitted for abandonment approval. A Final Abandonment Notice must be submitted when the rehabilitation is complete and the new vegetation is established.

i. If the well is plugged and abandoned, the surface casing will be cut off three (3) feet below reclaimed ground surface {with a metal plate affixed to the top. The metal plate will be inscribed with the operator's name, well number, well location (1/4 114, Section, TownShip, Range, etc.) aM federal lease number.

j. If the water well on location is taken over by the BLM, then the access road will not be reclaimed and will be left in place for use by the grazing lessee.

11. SURFACE OWNERSHIP

Welisite Bureau of Land Management

Roads - The access roads are located on BLM lands.

12. OTHER INFORMATION

a. AClass III archeological study has been conducted by Kautz Environmental. No significant cultural resources (eligible for the NRHP) were found during the field inspection and clearance for this project has been recommended. Acopy of this report will be submitted directly to the appropriate agencies by Kauthz Environmental..

b. If sub-surface cultural materials are found during any work phase, the BLM must be notified immediately. Construction will cease until the resource has been properly investigated and mitigated.

c. The BLM will be notified 48 hours in advance of any construction at the drilling or wellsite, unless otherwise authorized.

ONSHORE ORDER NO.1 Confidential Tight Hole Plains Exploration and Production Company PXP Pluto 271 Lease No. NVN80835 1865' FSL and 905' FEL NE SE Sec. 27 T18N - R61 E SURFACE USE PLAN White Pine Coun!y, Nevada Page 9

d. Sundry Notice and Report of Wells" (Form 3160-5) will be filed for approval for all changes of plans and other operations in accordan ce with 32 CFR 3164.

e. The dirt contractor will be provided with an approved copy of the surface use plan.

1. Surface operations will follow the Surface Operating Standards and Guidelines for Oil and Gas Exploration, Gold Book and the Conditions of Approval (COAs) contained in the Egan Resource Management Plan, Oil and Gas Leasing Amendment and Record of Decision.

13. LESSEE'S OR OPERATOR'S REPRESENTATIVE AND CERTIFICATION

PERMIT MAnERS DRILLING &COMPLETIONS MAnERS

PERMITCO INC. Plains Exploration and Production Company Lisa L. Smith 1021 Main 14421 County Road 10 Suite 21 00 Ft. Lupton, CO 80621 Houston, TX 77002 303/857-9999 Stephen Hopkins

713/579-6036 (office) 713/501-5075 (home)

CERTIFICATION

I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am famiiiar with the conditions which currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with the operations proposed herein will be performed by Plains Exploration and Production Company, its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement.

November 91 2006 ":f~lft.l?~ ~ )Date: Tabatha Parker - PERMITCO INC.

Authorized Agent for: Plains Exploration and Production Company

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LEGEND: PLAINS EXPLORATION & PRODUCTION COMPANY No PROPOSED LOCATION

Uintab Engineering & Land Surveying

85 South 200 East Vernal. Utah 84078

(435) 789-1017 "" FAG (435) 789-1813

PLUTO FEDERAL #27-1 SECTION 27, T18N, R61E, M.D.M.

1865' FSL 90S' FEL

TOPOGRAPHIC MAP

LEGEND: EXISTING ROAD

---------- PROPOSED ACCESS ROAD -""~ __~~'*"r'.'~~'C__~ EXISTING !-TRACK NEEDS UPGRADED

[]] MILE POSTSl

mil Uintah Engineering & Land Surveying 85 South 200 East Vernal. Utah 84078 (435) 789-IOI7 .... FAG (435) 789-I8I3 N

PLAINS EXPLORATION & PRODUCTION COMPANY PLUTO FEDERAL #27-1

SECTION 27, T18N, R61E, M.D.M. 1865' FSL 905' FEL

LEGEND: pf DISPOSAL WELLS o WATER WELLS N PRODUCING WELLS SHUT IN WELtS

-+- ABANDONED WELLS .. TEMPORARILY ABANDONED

II Uintah Engineering & Land Surveying 85 South 200 East Vernal. Utah 84078 (435) 789-1017 '" FAX (435) 789-1813 PLAINS EXPLORATION & PRODUCTION COMPANY

PLUTO FEDERAL #27-1 SECTION 27, T18N, R61E, M.D.M .

1865' FSL 905' FEL

PLAINS EXPLORATION & PRODUCTION COMPANY

C-19~C.::s.2J \ C-l.3)(Mm. pit) Reserve Pd Bac~fill . I. 60.9' .;.).\ I. \570'

\. '. & Spoils Sfoc~p"e.. \ .)

r flev. Ungraded Ground at Location Stake 7356.8: UINTAH ENGINEERING .t LAND SURVEYING

SCALE: 1~ = 50' DATE: 10-02-06 Drawn By: C.G.

Revised: 10-18-06'

NOTE:

\ I1. 63.8

~I ~~ C-16..J' .. tm. pit) .~"

,

\"... ~ ~ .-): ~

g~. Q:ju ~ -2.0:: V)

(I)~ :s; -'- 0 1Il~ .~ Q::~

\

\ \ \ I .

I U Z W ill w o

~

N RSERVE PITS II "'-..

(6" Deep) \

Total Pit Capacity W/2' of Freeboard

11,140 Bb/$. :I: Total Pit Volume = 3,300 Cu. Yds.

35'

~ I. 59." C-3.4'

~ -l

~

o tJ)

..,. ,',JI.F-s.?

r Sto. 1+00

125'

It),..,,....

\ ' .,"" 1" 'I' ~ a=\ ~ ~ \ \ rr-~. TM __ :~

1.670''"'11; , _~ a:J..,.

:> "~

'F,h .J Sto.~ 1+50 . 1. 49.8'

'" III .~ ~ u.

"0 .())

~

/Sta. 0+00

~ f-Zt-/-lev. Graded Ground at Location Stoke 7355.7 85 So. ZOO East. Vernal. Utah 84078 * (435) 789-1017

i

--

-- -

PLAINS EXPLORATION & PRODUCTION COMPANY TYPICAL CROSS SECTIONS FOR

a PLUTO FEDERAL #27-1N X-Section SECTION 27, T18N, R61E, M.D.M. Scale

1865' FSL 905' FEL

1" "" SO"

DATE: 10-02-06 3S' 12S" Drawn By: C.G.

Revised: 10-18-06

Finished Grade

--

- ~;;;~ilij~i.EE~\\\ 3S' 125'

-

80'

-LOCA 770N STAKE -

-.:.:...:;..,

CUT

STA. 1+50

80' 35' 125' Slope= 1 1/2: 1 (Tjp.)

..::; .. ;:', FILL: ~":-' ..

125'

--

-

----

Preconstruction STA. 1+00

./ Grade 125' ~

~::"'::.':~-~- ....~::~.:.~ \

NOTE: STA. 0+00Topsoil should not be -

Stripped Below Finished * NOTE:Grade on Substructure Area. FILL OUAN77TY INCLUDES 5% FOR COMPAC770N

APPROXIMA TE YARDAGES EXCESS MATERIAL 3.240 Cu. Yds. Topsoil & Pit Backfill ::: 3.240 Cu. Yds. (6") Topsoil Stripping 1,590 Cu. Yds. (1/2 Pit Vol.)

Remaining location 9,420 Cu. Yds. EXCESS UNBALANCE o Cu. Yds. (After Rehabilitation)

TOTAL CUT = 11.010CU.YDS. UINTAH ENGINEERING d: LAND SURVEYINGFILL = 7, 770 CU. YDS. 85 So. 200 East Vern.al. Uta.h 84078 (435) 789-1017

PLAINS EXPLORATION & PRODUCTION COMPANY TYPICAL RIG LAYOUT FOR

PLUTO FEDERAL #27-1

SECTION 27, T'18N, R61E, M.D.M.

1865' FSL 905' FEL

SCALE: 1" == 50'

DA TE: 10-02-06

Drown By: C.G.

Revised: 10-18-06

~ '0

I-----l

I-----l

35'

II) ! ::i

I"

!

"aW!1 S!lIllB SUO!lBlnd]ls IBJapal ou 9JB aJaLtl

SNOlllflndllS llfH3D3:J

ARCHEOLOGY

A Class III Archeological Survey for the above mentioned location has been conducted by Kautz Environmental. Noi significant cultural resources (eligible for the NRHP) were found and

clearance for the project has been recommend. A copy of this report will be submitted directly to the appropriate agencies directly by Kautz Environmental..

PLAINS EXPLORA TION &PRODUCT/vltI COMPANY CONFIDENTIAL WEllBORE SCHEMATIC.Proposed P & A

WELL Pluto 271

LOCATION Section 27, T18N, R 61E, X=4,362,371' & Y=664,647', Lat: 39.397 Long: 115.0879

CTYI STATE White Pine, Nevada RIG Nabors 148 Planned TO :t12,000'

FORMATIONS, SURVEYS, LOGGING

HOLE SIZE DEPTH,

RKB CASING, FLUIDS

GL MSL RKBGL RKB MSl

7,362.27 25.7

7.387.97

Cmt plug #380'-30'

20"x 1/4"@ 122' RKB, t100' BGl (Drilled and cement with inner string method)

Arcturus lSW @ surface

. 133/8" 54.5# J55 STC @t1,589' RKB

Rib Hill Sandstone @ 1,600' 171/2" 1.629'

Ely Limestone @ 1.850'

Chainman Shale & Stray Sands @ 4,177'

121/4"Triple Combo, Dipmeter t4,750'

95/S" 40# HCN-80 l TC @ 4495'

121/4" hole to 4750'

I~i Cmt plug #3 4570'-4445' 1 I 1 1 1 I

\.)Jf2t't.!~...t. .. . Cmt plug #2 5636'5512' t ,..to ~ ...1

I

Chainman Shale 4,177'9,643' 1 I~ " I (~~C:~I Cmt plug #1 6500'6330'1 ,.~~ : .....""'-t:1 I 1I I0I Mud 10.1 ppg lSND Polymer

Fish btm @ 9165' & top @ 8677' 8314" 19,643'

AFE: 52448 Field: Wildcat Rig: Nabors 148 Permit No.: 888 API #: 27- 03305318 By: G.P. Hertfelder

RECEIVED

Frnn 31&)'5 AUG 1 4 2007 UNITED STATES (February 2005) DEPARTMENT OF THE INTERIOR

Division of MirlMtSfu\U OF LAND MANAGEMENT SUNDRY NOTICES AND REPORTS ON WELLS

FORM APPROVED OMBNo.1004-0137

Expires: March 31,2007 5. Lease Serial No.

NVN-80835

Do not use this form for proposals to drill or to re-enter an abandoned well. Use Form 3160-3 (APD) for such proposals.

6. If Indian, Allottee or Tribe Name N/A

NDO

7. If Unit or CAlAgreement, Name and/or No.SUBMITIN TRIPLICATE Other instructions on f9verse side. N/ATypeOf~1l Iii Well DGasWell DOther 8. Well Name and No. PXP Pluto 27-1

9. API Well No. 27-033-05318

2. Name ofOperator Plains Exploration and Produetion Company

Ja Address 13b. Phone No. (include area code) 1021 Main, Suite 2100, Houston, TX. 77002 . 713-579-6610 10. Field and Pool, or ExplonlloryArea

Wildcat, Guilmette Limestone I L County or Parish, State


4. Location ofWell (Footage, Sec., T, R, M, or Survey Description) IS4S' FSL and 90S' FEL NE SE Section 27-TlSN-R16E

12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATORE OF NaIlCE, REPORT, OR OTIlER DATA TYPE OF SUBMISSION

o Notice of Intent o Subsequent Report o Final Abandonment Notice

TYPE OF ACTION

Acidiu D Alter Casing D Casing Repairo Change Plans

o Deepen o Fracture Treat o New Construction o Plug and Abandon

D D D

Production (StartiResume) Reclamation Recomplete Ten:porarily Abandon

Water Shut-Off DWell Integrity DOther ______

D Convert to Injection DPlugBack D Water Disposal 13. Describe Proposed or Completed Operation (clearly state all pertinent details, including estimated starting date ofany proposed work and approximate duration thereof.

If the proposal is to deepen directionally or recomplete horizontally, give subsurface locations and measured and true vertical depths of all peninent markers and zones. Attach the Bond under which the work will be performed or provide the Bond No. on fIle with BLMlBIA. Required subsequent reports must be fIled within 30 days following completion of the Involved operations. Ifthe operation results in a multiple completion or recompletion in a new interval, a Form 3160-4 must be filed once testing has been completed. Final Abandonment Notices must be filed only after all requirements, including reclamatioll, have been completed, and the operator has determined that the site is ready for ftnal inspection.)

PXP plans to begin P & A activities today July, 31, 2007.

Please see attached P & A program.

14. I hereby certifY that the foregoing is true and correct Name (Printed/Typed)

Gary P. Hertfelder Title Drilling Manager

------------------~~ P.j>roval, if any, are attached. Approval of this notice'j . fI'.I~~.~,1egalpr:~~tl!ble.titlf;:O~~:19

Date -; /3/ /0

Office MineraJs ManEllJ8l1'8nt

'Date AUG 1 0 2007

Title 18 US.c. Section 1001 and Tide43 U.S.c. Section 1212, make it a crime for any person knowingly and willfully to make to any department or agency of the United States any false, fictitious or fraudulent statements or representations ~ to anymatter within its jurisdiction. (Instructions on page 2)

~ Plains Exploration and Production Co. (PXP)

P&A Plan

Pluto 27-1

SW y~ NE y~ SE y" Section 27, T18N, R61E,


Rig Phone: 307-462-0409 Fax (Bag Phone): 307-262-7760 Date: 07/31/07 Prepared By: GPH Well: Pluto 27-1 lease No. NVN 80835 County: White Pine BlM Ely District Office: 775/289-1964 AFE#: 52448 AFE (72days): $6,290,000 API#: 27-033-05318 Permit: 888 location: 1,848.84' FSL & 908.44' FEL, Section 27, T 18N, R 61E M.D.B.M. or approximately 15.3 miles northwest of Ely, Nevada in White Pine County, Latitude: 390 23' 49.2099" & Longitude 1150 05' 19.75546" (NAD 83). Elevations: 7,387' RKB-MSL (based on 7362' GL-MSL, 25' RKB-GL-Nabors 148)

Drilled TO: 9,643' RKB

Directions:

From Ely Nevada, take highway 50 west for 15.3 miles. Tum left (south) onto existing lease road for 0.5 miles.

1. TIH Open ended to 6,500'. C&CM to final drilling mud weight, 10.1 ppg. 2. RU Cementers. M&P balanced 53 sack Class C cement (Plug #1) with additives (13.5 ppg 1

1.7 cuftl sack). 3. POOH to 9-5/8" CP and WOC for a total of 6 hours or until surface samples are hard. 4. TIH and tag plug @ 6,330'. Spot 10.1 ppg abandonment mud from 6,330' to 5,636'. 5. POOH to 5,636'. 6. M&P balanced 62 sack Class C cement (Plug #2) with additives (13.5 ppg 11.7 cuftl sack)

from 5,636' to 5,512'. 7. POH to 9-518" casing shoe. WOC for a total of 6 hours or until surface samples are hard. 8. Pump reserve pit fluids down well. Record number of bbls pumped from reserve pit. TIH

and spot 10.1 ppg abandonment mud from 5,512' to 4,570'. 9. POH to 4,570'. M&P balanced 130 sack Class C cement (Plug #3) with additives (13.5 ppg

/1.7 cuftJ sack) from 4,570' to 4,445'. 10. POH to 4,000'. WOC for a total of 6 hours or until surface samples are hard. 11. TIH and tag plug @ 4,445'. Spot 10.1 ppg abandonment mud from 4,445' to surface' 12. POOH laying down OP to 70', 13. M&P 12 sacks Class C cement (Plug #4) with additives (13.5 ppg I 1.7 cuftJ sack) leaving

plug from 80' to 30' MO (Base of cellar). 14. Circulate clean with freshwater. POOH. 15. NO BOPs, remove 9-5/8" x 13518" 3M starting head and cut-off surface and conductor pipe

at base of cellar. 16. Weld 36" capping plate over conductor and surface pipe. Remove culvert pipe, fill cellar

with native soil and level surface. Set in concrete a 4" 00 by 10' long steel maker post. The marker post must be 4 feet above ground level. The marker must bear the name of the operator and the name, number and description of the location of the well. Plains Exploration and Production Company. Pluto # 27-1. 1.848.84' FSL & 908.44' FELt! Section 27. T 18N. R 61E MoD.S.M. White Pine County. NV. This information must be bead-welded or stamped directly to the marker pipe. The top of the pipe must be closed with a cement plug, screw cap or welds.

17.Clean pits, pick up all debris and ROMO Nabors 148. Restore location to close to its condition when operations were commenced as practicable.

Pluto 27-1 Plugging Plan RevOO_310707.doc

IP....nnAI'I TO

Cmt plug #3 80'-30'

and cement with inner

13-318" 54.5# J-55 STC @ 1.589' RKB

'\ PLAINS EXPLORA TION & PRODUCTION COMPANY

CONFIDENTIAL WELLBORE SCHEMATIC-Proposed P & A

Pluto Section 27, T18N, R 61E, X=4,362,371, & Y=664,647', Lat: 39.397 Long: -115.0879 White Pine, Nevada Nabors 148 :t12,OOO'

DEPTH, U"UKMIo\TrONS, SURVEYS, LOGGING RKB CAS FLUIDS

7,362.27 25.7

7.387.97

Arcturus LSW @ surface

17-1/2"Rib Hill Sandstone @ 1.600' 1.629'

Ely Limestone @ 1,850'

Chainman Shale & Stray [email protected]'

12-1/4"Triple Combo. Oipmeter 4,750'

IN)/lS"" 4lHF Ht;N-lSU LIt; @ 44lf0"

12-1/4" hole to 4750'

Cmt plug #3 4570'-4445'

1 I

l;~~~: Cmt plug #2 5636'-5512' i

Plains Exploration and Production Co. (PXP)

P&A Plan

Pluto 27-1

SW 114 NE 114 SE 114 Section 27, T18N, R61E,


Rig Phone: 307-462-0409 Fax (Bag Phone): 307-262-7760 Date: 07/31/07 Prepared By: GPH Well: Pluto 27-1 lease No. NVN 80835 County: White Pine BlM Ely District Office: 775/289-1964 AFE #: 52448 AFE (72days): $6,290,000 API#: 27-033-05318 Permit: 888 location: 1,848.84' FSL & 908.44' FEL, Section 27, T 18N, R 61E M.D.B.M. or approximately 15.3 miles northwest of Ely, Nevada in White Pine County, Latitude: 390 23' 49.2099" & Longitude 1150 05' 19.75546" (NAD 83).

Elevations: 7,387' RKB-MSL (based on 7362' GL-MSL, 25' RKB-GL-Nabors 148)

Drilled TD: 9,643' RKB

Directions:

From Ely Nevada, take highway 50 west for 15.3 miles. Turn left (south) onto existing lease road for 0.5 miles.

1. TIH Open ended to 6,500'. C&CM to final drilling mud weight, 10.1 ppg. 2. RU Cementers. M&P balanced 53 sack Class C cement (Plug #1) with additives (13.5 ppg /

1.7 cuftl sack). 3. POOH to 9-5/8" CP and WOC for a total of 6 hours or until sUlface samples are hard. 4. TIH and tag plug @ 6,330'. Spot 10.1 ppg abandonment mud from 6,330' to 5,636'. 5. POOH to 5,636'. 6. M&P balanced 62 sack Class C cement (Plug #2) with additives (13.5 ppg / 1.7 cuftl sack)

from 5,636' to 5,512'. 7. POH to 9-5/8" casing shoe. WOC for a total of 6 hours or until surface samples are hard. 8. Pump reserve pit fluids down well. Record number of bbls pumped from reserve pit. TIH


/1.7 cuftl sack) from 4,570' to 4,445'. 10. POH to 4,000'. WOC for a total of 6 hours or until surface samples are hard. 11. TIH and tag plug @ 4,445'. Spot 10.1 ppg abandonment mud from 4,445' to surface' 12. POOH laying down DP to 70'. 13.M&P 12 sacks Class C cement (Plug #4) with additives (13.5 ppg /1.7 cuftl sack) leaving

plug from 80' to 30' MD (Base of cellar). 14. Circulate clean with freshwater. POOH. 15. ND BOPs, remove 9-5/8" x 13-5/8" 3M starting head and cut-off surface and conductor pipe


with native soil and level surface. Set in concrete a 4" 00 by 10' long steel maker post. The marker post must be 4 feet above ground level. The marker must bear the name of the operator and the name, number and description of the location of the well. Plains

~ . ._1_ .t..~_._ _ . ~I '"L. __. _i!_ '" I""\'"i _ _ll n""'J',J

.:

CONTACT LIST

PXPC ---

Contact Infl t' Houst, d Lafavett,-

CONTACTS E-mail Office Home Cell ! OQE!fations Fax 713 579-6204 Drilling Manager: Gary Hertfelder ahertfeldercalpxp.com 805-934-8227

337354-5010 805-937-0237 337988-9021

805-703-0349 337 316-6297 DrillinQ_ Manager: Wayne McBride wmcbridecalplainsxp.com

Drilling Vice President: Randy Vines rvinesl/l)olainsxp .com 713-579-6099 281-292-9798 713-305-1984 Purchasing: Bob Hughes bhuahesl/l)olainsx~com 713-579-6173

713-579-6083 337-354-5013 713-579-6172

281-3674430 281-362-8230 337-988-2663 218438-7483

832-213-7346 713-569-0096 337-316-2748 713907-7712

Geological Mgr.: Bud Simmons Log Analyst: George Pen a [Geologist: Robert Ray

bsimmonscalolainsxo.com ooenal/l)olainsxo.com [email protected]

Reaulatorv A- ------ - - - _.-

BLM Nevada State Office Reno, Nevada 775861-6400 BLM, John Menghini State Office, Petroleum Engineer Reno, Nevada 775861-6573 (0)

775223-1359 (C) BLM, Michael Tyler Ely District Petroleum Technician

(Inspector) Ely, Nevada 775289-1964 (C)

Nevada Division of Minerals (NDOM)

Christy Morris - Oil, Gas and Geothermal Program Lead

Carson City. Nevada

775 684-7045 (0) 775721-17"74 (G)

E c- -_ ... - -

Service Municipality Location Phone Sheriff White Pine County Ely Nevada 775 289-8808 EMS Ely Sheriff Department

Dispatches Ely, Nevada 775 2894833

or 911 Fire Ely Fire Department Ely, Nevada 775 289-2345 State Police (NHP) White Pine County Elko, Nevada 775 753-1298 Hospital William B. Rivie Ely, Nevada 775 289-3001

Plains Exploration and Production Co. (PXP) P&A Plan

Pluto 271

SW"I4 NE "14 SE % Section 27, T18N, R61E,


Rig Phone: 307-462-0409 Fax (Bag Phone): 307-262-7760 Date: 07/31/07 Prepared By: GPH Well: Pluto 27-1 lease No. NVN 80835 County: White Pine BlM Ely District Office: 775/289-1964 AFE #: 52448 AFE (72days): $6,290,000 API#: 27-033-05318 Permit: 888 location: 1,848.84' FSL & 908.44' FEL, Section 27, T 18N, R 61E M.D.B.M. or approximately 15.3 miles northwest of Ely, Nevada in White Pine County, Latitude: 39 23' 49.2099" & Longitude 1150 05' 19.75546" (NAO 83).

Elevations: 7,387' RKB-MSL (based on 7362' GL-MSL, 25' RKB-GL-Nabors 148)

Drilled TO: 9,643' RKB

Directions:

From Ely Nevada, take highway 50 west for 15.3 miles. Turn left (south) onto existing lease road for 0.5 miles.

1. TIH Open ended to 6,500'. C&CM to final drilling mud weight, 10.1 ppg. 2. RU Cementers. M&P balanced 53 sack Class C cement (Plug #1) with additives (13.5 ppg /

1.7 cuftl sack). 3. POOH to 9-5/8" CP and WOC for a total of 6 hours or until surface samples are hard. 4. TIH and tag plug @ 6,330'. Spot 10.1 ppg abandonment mud from 6,330' to 5,636'. 5. POOH to 5,636'. 6. M&P balanced 62 sack Class C cement (Plug #2) with additives (13.5 ppg /1.7 cuftl sack)

from 5,636' to 5,512'. 7. POH to 9-5/8" casing shoe. WOC for a total of 6 hours or until surface samples are hard. 8. Pump reserve pit fluids down well. Record number of bbls pumped from reserve pit. TIH


/1.7 cuftl sack) from 4,570' to 4,445'. 10. POH to 4,000'. WOC for a total of 6 hours or until surface samples are hard. 11. TIH and tag plug @ 4,445'. Spot 10.1 ppg abandonment mud from 4,445' to surface' 12. POOH laying down OP to 70'. 13.M&P 12 sacks Class C cement (Plug #4) with additives (13.5 ppg /1.7 cuftl sack) leaving

plug from 80' to 30' MO (Base of cellar). 14. Circulate clean with freshwater. POOH. 15. NO BOPs, remove 9-5/8" x 13-5/8" 3M starting head and cut-off surface and conductor pipe


with native soil and level surface. Set in concrete a 4" 00 by 10' long steel maker post. The marker post must be 4 feet above ground level. The marker must bear the name of the operator and the name, number and description of the location of the well. Plains

, ,0 CONTACT LIST

PXPC c Infl H -

d Laf:

CONTACTS E-mail Office Home Cell Operations Fax 713579-6204 Drilling Manager: Gary Hertfelder [email protected] 805-934-8227 805-937-0237 805-703-0349 Drilling Manager: Wayne McBride [email protected] 337354-5010 337 988-9021 337 316-6297 Drilling Vice President :Randy Vines [email protected] 713-579-6099 281-292-9798 713-305-1984 Purchasing: Bob Hughes [email protected] 713-579-6173 281-367-4430 832-213-7346 Geological Mgr.: Bud Simmons [email protected] 713-579-6083 281-362-8230 713-569-0096 Log Analyst: George Pena [email protected] 337-354-5013 337-988-2663 337-316-2748 Geologist: Robert Ray___ _ [email protected] 713-579-6172

_ ........... _-_ ...............__ ..............._

218438-7483 _ ....... _-_ ......... _-_ ...... __.

713907-7712 _ ........... _-_ ..... _-_ .......... _-

Reaulatorv A .,.... --~.--- -

BLM Nevada State Office Reno, Nevada 775861-6400 BLM, John Menghini State Office, Petroleum Engineer Reno, Nevada 775861-6573 (0)

775 223-1359 (C) BLM, Michael Tyler Ely District Petroleum Technician

(Inspector) Ely, Nevada 775289-1964 (C)

Nevada Division of Minerals (NDOM)

Christy Morris - Oil, Gas and GeothermClLPrggram Lead

Carson City, Nevada

775684-7045 (0) 775721-1774 (C) I

Emeraencv Contacts Service Munic!palj!y Location Phone

Sheriff White Pine County Ely Nevada 775289-8808 EMS Ely Sheriff Department

Dispatches Ely, Nevada 775 289-4833 I

or 911 Fire Ely Fire Department Ely, Nevada 775 289-2345 State Police (NHP) White Pine County Elko, Nevada 775753-1298 Hospital William B. Rivie

.... __

Ely, Nevada 775289-3001

Chris!,l L. Morris

From: Hertfelder, Gary [[email protected]]

Sent: Wednesday, August 08,20077:19 AM

To: Christy L. Morris; Cowand, Scott; Graves, Jim; Hanks, Gayle; Hertfelder, Gary; Hughes, Bob;

Janik, Dale; Jay Namson ; [email protected]; Kana, James; Lemoine, Rowdy; McBride, Wayne; McClurg, Dan; Meaux, Ron; Michael Tyler; Mike Decker; Mike Sistrunk PXP Drlg. Consultant; Pena, George; Ray, Robert; Robin Dean; Sawyer, Maynard; Simmons, Bud; Smith, Gary; Vines, Randy

Subject: PLuto 27-1 Final Report

No accidents or incidents to report

FROM MIDNIGHT TO 06:00 Wait on daylight.

PO: Back load drill pipe and miscellaneous rig equipment. Clean location

24 hr Summary: Wait on daylight. Back load drill pipe (7 loads) and miscellaneous equipment (6 loads). Clean

location. Final Report.

Forecast:

Begin location restoration.

Daily Cost: $230,560

Total Cost: $8,153,464 ************************************

Gary P. Hertfelder, P .E. Drilling Manager Plains Exploration & Production Company 201 S. Broadway Orcutt, CA. 93455

VOICE: 805.934.8227 FAX: 805.937.0237 EMAIL: [email protected]

CONFIDENTIALITY NOTE: The information contained in this email is legally privileged and confidential information intended only for the use of the addressee named above. If the reader of this email is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify me by telephone and return the original email to me via reply mail. Thank you.

1

PXP

WELL: PLUTO_27-1 FIELD: LAS VEGAS STATE: NV WHITE PINE AREA: LAFAYETTE/HOUSTON CLASS: ORIL RIG CONTR: NABORS DRILLING

DAILY DRILLING REPORT

ACTIVITY: WAIT ON DAYLIGHTS RIG RELEASED AT 24:00 HRS

TRIP# BIT# MODEL SIZE IADC FROM TO LGTH HRS N1 N2 N 3 WOB RPM I 0 D L B G 0 R

BHA#: MUD PROPERTIES HYDRAULICS Qty Description 0.0. Length Time: 00:00 Solids: Sid Pipe: PUMP#1 PUMP#2 PUMP#3

MW: Oil: #Cyl: 3 3 VISC: 10 sec Gel: SPM: pH: 10 min Gel: Liner Id: 5.500 5.500

Chi: CA: S.L.: 10.00 10.00 Rod Dia:

WL: Pm: Eff%: 95 95 HTHP: P1: GPM: 0 0 0 FC: Ex Lime: 2.93 2.93 0 PV: ElecStab: SLOW PUMP RATES YP: MBT: SPM:

PRSR: AV(DP): 0.0 AV(DC): 0.0 Jet Vel: 0.0 PSI Drop: 0.0 BitHP: 0.0 HPlin2: 0.0

Total BHA Length: 0.00 SURVEYS Mud Used

MD Angle TVD Dir. V. Sect. +N/-S +E/-W D.L. Mud Additive Used

FROM TO HRS Activity Last 24 Houl'S 00:00 06:00 6.00 WAIT ON DAYLIGHT 06:00 18:00 12.00 RIG DOWN AND MOVE RIG OUT 18:00 00:00 6.00 WAIT ON DAYLIGHT (RIG RELEASED AT 24:00 HRS AUGUST COSTS SUMMARY 5,2007)

Code Description Costs 20 CONTRACT LABOR 1,500 250 TRANSPORTATION - LAND 137,000 430 RIG COSTS 18,000 730 OVERHEAD 250 810 MISCELLANEOUS 15,675

I

II

24.00 = Total Hours Today

Total Daily Cost: $172,425 Cumulative Cost To Date: $7,922,904

- -...

TO: 30 PROGRESS: 0 HRS: 0.00 RIG: NABORS 148

TVD: 30

DATE: 8/5/2007

RPT No: 105 DSS: 89 FOREMAN:M1KE SISTRUNK API#: 2703305318 AFE#: 52448 CASING: in. SHOE MD: PH NBR: 307-462-0409

PXP DAILY DRILLING REPORT DATE: 8/4/2007 WELL: PLUTO_27-1 ACTIVITY: WAIT ON DAYLIGHT RPT No: 104 DSS: 88 FIELD: LAS VEGAS FOREMAN:MIKE SISTRUNK STATE: NV WHITE PINE TD: 30 TVD: 30 API#: 2703305318 AREA: LAFAYEITEJHOUSTON PROGRESS: 0 AFE#: 52448 CLASS: DRIL HRS: 0.00 CASING: in. SHOEMD: RIG CONTR: NABORS DRILLING RIG: NABORS 148 PHNBR: 307-462-0409

TRIP# BIT# MODEL SIZE IADC FROM TO LGTH HRS N1 N2 N 3 WOB RPM I 0 D L B G 0 R

BHA#: MUD PROPERTIES HYDRAULICS Qty Description O.D. Length Time: 00:00 Solids: Std Pipe: PUMP#1 PUMP#2 PUMP#3

MW: Oil: #Cyl: 3 3 VISC: 10 sec Gel: SPM: pH: 10 min Gel: Liner Id: 5.500 5.500 S.L.: 10.00 10.00 Chi: CA: Rod Dia: WL: Pm: Eff%: 95 95 HTHP: Pf: GPM: 0 0 0 FC: Ex Lime: 2.93 2.93 0 PV: Elec Stab: SLOW PUMP RATES YP: MBT: SPM:

PRSR: AV(DP): 0.0 AV(DC): 0.0 Jet Vel: 0.0 PSI Drop: 0.0 BitHP: 0.0 HPlin2: 0.0


MD Angle TVD Dir. V. Sect. +N/-S +EJ-W D.L. Mud Additive Used

FROM TO HRS Activity Last 24 Hours 00:00 06:00 6.00 WAIT ON DAYLIGHT

II06:00 18:00 12.00 RIGGING DOWN, 70% RIGGED DOWN 18:00 00:00 6.00 WAIT ON DAY LIGHT COSTS SUMMARY

Code Description Costs 20 CONTRACT LABOR 1,500 250 TRANSPORTATION LAND 18,000 430 RIG COSTS 18,000 610 ENVIRONMENTAL 1,01 710 RENTAL EQUIPMENT 1,17E 730 OVERHEAD 250 810 MISCELLANEOUS 3,994

24.00 =Total Hours Today

Total Daily Cost: $43,932 Cumulative Cost To Date: $7,750,479 - -

1

PXP DAILY DRILLING REPORT DATE: 8/3/2007 WELL: PLUTO_27-1 ACTIVITY: WAIT ON DAYLIGHT RPT No: 103 DSS: 87 FIELD: LAS VEGAS FOREMAN:MIKE SISTRUNK STATE: NV WHITE PINE TO: 30 TVD: 30 API#: 2703305318 AREA: LAFAYETTEIHOUSTON PROGRESS: 0 AFE#: 52448 CLASS: DRIL HRS: 0,00 CASING: in, SHOE MD: RIG CONTR: NABORS DRILLING RIG: NABORS 148 PHNBR: 307-462-0409

TRIPI BIT# MODEL SIZE IADC FROM TO LGTH HRS N1 N2 N3 WOB RPM I 0 D L B G 0 R

BHA': MUD PROPERTIES HYDRAULICS Qty Description 0,0, Length Time: 00:00 Solids: SId Pipe: PUMPl1 PUMP12 PUMPl3

MW: Oil: #Cyl: 3 3 VISC: 10 sec Gel: SPM: pH: 10 min Gel: liner Id: 5,500 5,500 Chi: CA: S,l.: 10,00 10,00 Rod Dia: Wl: Pm: Eff%: 95 95 HTHP: Pf: GPM: 0

FC: Ex Lime: 2,93 2,93 PV: Elec Slab: SLOW PUMP RATES

YP: MBT; SPM: PRSR: AV(DP): 0,0 AV(DC): 0,0 Jet Vel: 0,0 PSI Drop: 0,0 Bit HP: 0,0 HPlin2: 0,0

Total BHA Length: 0,00 SURVEYS Mud Used

MD Angle TVD Dir, V, Sect +NI-S +EI-W D.l. Mud Additive Used

FROM TO HRS Activity Last 24 Hours 00:00 06:00 6,00 WAIT ON DYLIGHT 06:00 18:00 12,00 RIGGING DOWN 18:00 00:00 6,00 ~AIT ON DAYLIGHT COSTS SUMMARY

Code Description Costs 20 CONTRACT LABOR 1.500 430 RIG COSTS 18,000 460 DIRECTIONAL SERVICESILWt: 233.855 730 OVERHEAD 250[1 810 MISCELLANEOUS 25,360

I

24,00 = Total Hours Today I


- .. --- .............-- ............--......... -

PXP DAILY DRILLING REPORT DATE: 81212007 WELL: PLUTO_27-1 ACTIVITY: WAIT ON DAYLIGHT RPT No: 102 DSS: 86 FIELD: LAS VEGAS FOREMAN:MIKE SISTRUNK STATE: NV WHITE PINE TO: 30 TVD: 30 API#: 2703305318 AREA: LAFAYETTE/HOUSTON PROGRESS: 0 AFE#: 52448 CLASS: DRIL HRS: 0.00 CASING: in. SHOEMD: RIG CONTR: NABORS DRILLING RIG: NABORS 148 PH NBR: 307 -462-0409

TRIPI BIT# MODEL SIZE IADC FROM TO LGTH HRS N1 N2 N3 WOB RPM I 0 D L B G 0 R

BHA'; MUD PROPERTIES HYDRAULICS Qly Description 0.0. Length Time: 00:00 Solids: SId Pipe: PUMPl1 PUMPl2 PUMPl3

MW: Oil: #Cyl: 3 3 VISC: 10 sec Gel: SPM: pH: 10 min Gel: Liner Id: 5.500 5.500 Chi: CA:

S.L.: 10.00 10.00 Rod Dia:

WL: Pm: Eff%: 95 95 HTHP: Pf: GPM: 0 0 0 FC: Ex Lime: 2.93 2.93 0 PV: Elec Stab: SLOW PUMP RATES YP: MBT: SPM:

PRSR: AV(DP): 0.0 AV(OC): 0.0 Jet Vel: 0.0 PSI Drop: 0.0 BiIHP: 0.0 HP/in2: 0.0


MD Angle TVD Dir. V. Sect. +N/-S +EJ-W D.L. Mud Additive Used

FROM TO HRS Activity last 24 Hours 00:00 00:30 0.50 WOC 00:30 06:00 5.50 TAG PLUG # 3 AT 4,460' (35' INSIDE 9-5/8" CASING)

WITNESSED AND OK'D BY BLM'S MICHAEL TYLER, POOH COSTS SUMMARY LAYING DOWN DRILL PIPE 06:00 09:30 3.50 CLEAN CELLAR FOR SETTING PLUG # 4 Code Description Costs 09:30 10:00 0.50 SeT 12 SX CMT PLUG FROM 80' BACK TO 30' BELOW RIG 20 CONTRACT LABOR 1,500

FLOOR 250 TRANSPORTATION - LAND 18,00010:00 00:00 14.00 NIPPLE DOWN BOP AND CLEAN MUD PITS 350 CEMENTING AND SERVICES 98,057 360 MUD/FLUIDS/CHEMICALS 450 400 CASINGfTUBING/HAMMER EQ 22,425 1 I 430 RIG COSTS 20,000 I 550 WATER 1,500 670 COMMUNICAnONS 250 710 RENTAL EQUIPMENT 1,500 730 OVERHEAD 250 810 MISCelLANEOUS 16,393

24.00 =Total Hours Today


_ .. _-_ ..... _-

DAILY DRILLING REPORT DATE: 8/1/2007PXP WELL: PLUTO_27-1 ACTIVITY: W.O.C RPT No: 101 DSS: 85 FIELD: LAS VEGAS FOREMAN:MIKE SISTRUNK STATE: NV VllHITE PINE TO: 4,460 TVD: 4,460 API#: 2703305318 AREA: LAFAYETIE/HOUSTON PROGRESS: 0 AFE#: 52448 CLASS: DRIL HRS: 0.00 CASING: 13.375 in. SHOE MD: 1,590 RIG CONTR: NABORS DRILLING RIG: NABORS 148 PH NBR: 307-462-0409

TRIP# BIT# MODEL SIZE IADC FROM TO LGTH HRS N1 N2 N3 WOB RPM I 0 0 L B G 0 R 31 0 0.00 [)

BHA': MUD PROPERTIES HYDRAULICS Qty Description 0.0. Lenglh Time: O[):OO SOlids: SId Pipe: 1240 PUMP#1 PUMP#2 PUMP#3

MW: 10.3 Oil: #Cyl: 3 3 VISC: 60 10 sec Gel: 7 SPM: 90 90 pH: 9.9 10 min Gel: 10 Linerld: 5.500 5.500

S.L.: 10.00 10.00 ChI: 200 CA: 40 Rod Dia: WL: 5 Pm: 0.3 Eff%: 95 95 HTHP: 5 Pf: GPM: 264 264 0 FC: 2 Ex Lime: 2.93 2.93 0 PV: 26 Elec Stab: SLOW PUMP RATES YP: 26 MBT: 25 SPM: 57 56

PRSR: 442 450 AV(DP): 0.0 AV(DC): 0.0 Jet Vel: 0.0 PSI Drop: 0.0 BitHP: 0.0 HPlin2: 0.0

Tolal BHA Length: 0.00 SURVEYS Mud Used

MD Angle TVD Dir. V. Sect. +N/-S +E/-W D.L. Mud Additive Used MUD MAN 1

FROM TO HRS Activity Last 24 Hours 00:00 01:00 1.00 RIG REPAIR, WORK ON HYDRO. LINK TILT CYL. AND

CLAMPS ON BAILS FOR LINK TILT 01:00 02:30 1.50 RIH AND TAG CMT PLUG @ 6,336' 164' OF CMT PLUG 02:30 06:30 4.00 POOH, LD DC TO 5,250' COSTS SUMMARY 06:30 09:30 3.00 IATIEMPT TO CIRCULATE, DRILL STRING PLUGED Code Description Costs 09:30 13:00 3.50 POOH (WET STRING) TO FIND OBSTRUCTION INSIDE DRILL 20 CONTRACT LABOR 1,500

STRING, STAND # 56 PLUGGED, MULE SHOE JOINT CLEAR 1 250 TRANSPORTATION -LAND 3,625

lAND OK. 13:00 13:30 0.50 WASH FLOOR AND ALLOW HANDS TO CLEAN-UP AFTER 360 MUDIFLUIDS/CHEMICALS 450

WET TRIP FOR SAFETY. 430 RIG COSTS 20,000 13:30 15:30 2.00 RIH TO 5,636' TO SET 2ND CMT PLUG 440 BITSIHOLE OPENERS/UNDERI 15,000 15:30 16:30 1.00 SET 2ND CMT PLUG FROM 5,636' BACK TO 5,512' 550 WATER 1,500 16:30 17:30 1.00 POOH TO 4,570' 610 ENVIRONMENTAL 1,013 17:30 18:00 0.50 CIRCULATE FOR 3RD CMT PLUG 670 COMMUNICATIONS 250 18:00 18:30 0.50 SET 3RD CMT PLUG FROM 4,570 BACK TO 4,445' 710 RENTAL EQUIPMENT 4.331 18:30 19:00 0.50 POOH TO ,4295' 730 OVERHEAD 25019:00 00:00 5.00 CIRCULATE TO CLEAR CMT FORM PIPE, W.O.C. AND LAY

DOWN EXCESS DP FROM DERRICK 810 MISCELLANEOUS 4,792

I


Total Daily Cost: $52,711 Cumulative Cost To Date: $7.247,257

-

DAILY DRILLING REPORTPXP PLUTO_27-1 ACTIVITY: UD BHAWELL:

FIELD: LAS VEGAS STATE: NV WHITE PINE AREA: LAFAYETTE/HOUSTON CLASS: DRIL RIG CONTR: NABORS DRILLING

TRIP# BIT# MODEL SIZE 31

BHA#: Qty Description

TD: 6,336 PROGRESS: 0 HRS: 0.00 RIG: NABORS 148

TO HRS 0

IADC FROM LGTH 0.00

MUD PROPERTIES O.D. Length Time: 00:00 Solids:

MW: 10.3 Oil: VISC: 60 10 sec Gel: pH: 9.9 10 min Gel: ChI: 100 CA: WL: 5.5 Pm: HTHP: Pf: FC: 2 Ex Lime: PV: 25 Elec Stab: YP: 27 MBT:

Total BHA Length: 0.00 SURVEYS

TVD: 6,336

N1 N2 N3

11

7 10 40 0.3

0.25

25

DATE: 7/31/2007

RPT No: 100 DSS: 84

FOREMAN:MIKE SISTRUNKIMIKE MACALLISTEf;

API#: 2703305318 AFE#: 52448 CASING: 9.625 in. SHOE MD: 4,495

MD

FROM 00:00 02:30 03:00 03:30

07:00 08:30 14:00 14:30 15:00

15:30

18:00

19:30 21:00

22:30

23:30

Angle

TO 02:30 03:00 03:30 07:00

08:30 14:00 14:30 15:00 15:30

18:00

19:30

21:00 22:30

23:30

00:00

HRS 2.50 0.50 0.50 3.50

1.50 5.50 0.50 0.50 0.50

2.50

1.50

1.50 1.50

1.00

0.50

+E/-WDir. V. Sect. +NI-STVD D.L.

Activity Last 24 Hours CIRCULATE WHILE WAIT ON UD MACHINE,

SAFETY MEETING W WEATHERFORD UD CREW

RlU WEATHERFORD UD MACHINE & EQUIPMENT,

POOH UD DRILL PIPE W WEATHERFORD MACHINE AND

CREW

RID WEATHERFORD

RIH T! 6,461' WITH CEMENTING ASSEMBLY I P&A

CIRCULATE I SAFETY,

SAFETY MEETING W SCHLUMBERGER CEMENTERS

START CEMENT JOB, CEMENT HOPPER PLUGGED, AFTER

PUMPING SMALL AMOUNT OF CEMENT,

CIRCULATE OUT CEMENT SURFACE TO SURFACE,

OBSERVED LARGE AMOUNT OF CUTTINGS OVER SHAKER

WITH CEMENT CONTAMINATED MUD,

MlP AND POSITION CEMENT PLUG Ff6,500' TI6,330', POOH W

5 STDS,

CIRCULATE OUT OBSERVED NO CEMENT IN RETURNS

POOH W 10 STDS TO LAY DOWN BHA, WHILE WOC,

PROBLEMS WITH HYDRAULIC BAILS,

TIGHTEN CLAMPS ON BAILS, RIG SERVICE, PROBLEM STILL

EXISTS,

RIH W STAND OF COLLARS, TAG OBSTRUCTION, PULL UP

15' & GO DOWN WIO PROBLEM WITH DRILL COLLARS 2

STANDS,

24.00 = Tolal Hours Today

WOB 0

PH NBR:

RPM

307-462-0409

I L0 D

HYDRAULICS

B G R

PUMP#3Std Pipe: # Cyl: SPM: Liner Id: S.L.: Rod Dia: Eff%: GPM:

SPM: PRSR: AV(DP): Jet Vel: BitHP:

MUD MAN PALLETS

1400 PUMP#1 PUMP#2 3 3

90 90 5.500 5.500 10.00 10.00

95 95 264 264

2.93 2.93 SLOW PUMP RATES

57 56 442 450

0.0 AV(DC): 0.0 PSI Drop: 0.0 HPlin2:

Mud Used Mud Additive

0 0

0.0 0.0 0.0

Used 1 1 1 1 3 1

Costs 2,700 1,242

928 6,75C

20,000

1,600 1,500

250 5,901

250 4,112

C

POLYPAC R SHRINK WRAPPING SP-101 TAX

Code 20 250 360 400 430 460 510 550 670 710 730 810

COSTS SUMMARY Description

CONTRACT LABOR TRANSPORTATION - LAND MUDIFLUIDSICHEMICALS CASINGfTUBINGlHAMMER EQ RIG COSTS DIRECTIONAL SERVICESILWC OPEN HOLE LOGfFORMATION WATER COMMUNICATIONS RENTAL EQUIPMENT OVERHEAD MISCELLANEOUS

Total Daily Cost: $45,234

Cumulative Cosl To Date: $7,194,546

0

DAILY DRILLING REPORT DATE: 7/30/2007PXP PLUTO_27-1 ACTIVITY: UD 5" DRILL PIPE (71 STDS) RPT No: 99 DSS: 83WELL:

WHILE WAITING ON CASINGFIELD: LAS VEGAS STATE: NV WHITE PINE AREA: LAFAYETTE/HOUSTON CLASS: DRIL RIG CONTR: NABORS DRILLING

TRIP# MODEL SIZEBIT# 32

Qty 1

BHAI: 32 DeScription

MULESHOE

TO: 9,643 PROGRESS: 0 HRS: 0.00 RIG: NABORS 148

FROM TO LGTH HRS 0

IADC 0.00

Total BHA Length: 8.23 SURVEYS

TVD: 9,643

N1

MUD PROPERTIES LengthO.D. Time: 00:00 Solids:

5.000 8.23 MW: 10.3 Oil:

VISC: 63 10 sec Gel:

pH: 9.9 10 min Gel:

Chi: 100 CA:

WL: 5.5 Pm:

HTHP: Pf:

FC: 2 Ex Lime:

PV: 27 Elec Stab:

YP: 30 MBT:

MD Angle

FROM TO HRS 00:00 01:00 1.00 01:00 02:00 1.00 02:00 03:30 1.50

03:30 17:00 13.50 20:3017:00 3.50

1.5020:30 22:00 22:00 23:30 1.50

00:00 0.5023:30

V. Sect. +N/-S +E/-W D.L.TVD Dir.

Activity last 24 Hours

FINISH POOH W/HALLIBURTON LOGGING TOOL

RIG DOWN HALLIBURTON

PICK-UP MULE SHOE, RIH OPEN-ENDED TO SET CMT

KICK-OFF PLUG AT 8,677', TAKING STRING WEIGHT TO GO

DOWN (25 TO 40K)

r-vASH AND REAM FROM 4,770' TO 7,501'

CIRCULATE & CLEAN HOLE FOR 7" LINER. FINISH

REMOVING PROTECTORS AND TALLY 7", 23#. P-110. LTC,

CASING

POOH FOR 7" LINER W PUMP FI7,505' T/6,560'

POOH W ELEVATORS F/6,560' T/4,432',

CIRCULATE AT 4,432' WHILE WAIT ON UD MACHINE


_ ................._-

N2 N3

11

8 11 40 0.3

0.25

25

FOREMAN: MIKE SISTRUNK/MIKE MACALLISTER API#: AFE#: CASING: PH NBR:

2703305318 524

27-033-05318

Documents

permit fee

state of nevada commission

vision of minerals application

king street

state of n evada

state of nevada las

operator plains exploration

production company lease