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ESSO HIGHLANDS LTD

Mud Logging Program

23 September, 2013
Esso Highlands Ltd
Mudlogging Customer Requirement Manual

Table of Contents

INTRODUCTION ........................................................................................................ 3
1. PROJECT OVERVIEW ....................................................................................... 3
1.1. OFFICIAL COMPANY NAME................................................................................ 4
1.2. DRILLING RIG .................................................................................................. 4
1.3. BASIN/AREA .................................................................................................... 4
1.4. WELL NAMING CONVENTION ............................................................................. 4
1.4.1. Sidetracks ............................................................................................... 4
1.5. FAILURE REPORTING ....................................................................................... 5
1.6. WELL DATA SECURITY ..................................................................................... 5
1.9. LAS GENERAL DATA ........................................................................................ 5
1.7. DISTRIBUTION LIST .......................................................................................... 5
2. MUD LOGGING REPORTING ............................................................................ 5
Final Mudlogging deliverables ......................................................................... 7
2.1. FORMATION SAMPLING AND ANALYSIS ............................................................... 7
2.1.1. Formation Sample Interval...................................................................... 8
2.1.2. Formation Sample – Packaging & Labeling .......................................... 10
2.1.3. Formation Sample – Distribution .......................................................... 10
2.2. MUD LOGGING LOG FORMATS ........................................................................ 11
2.2.1. Mud Log Header ................................................................................... 11
2.2.2. Mud Log Format ................................................................................... 13
2.2.3. Pressure Log Format ............................................................................ 13
2.2.4. Drilling Log Format ............................................................................... 14
2.2.5. Gas Ratio.............................................................................................. 14
2.2.6. Daily Report .......................................................................................... 17
2.2.7. End of Hole section Time Ascii requirement. ........................................ 18
2.3. MUD LOGGING LAS DATA FILE FORMATS ......................................................... 18
3. CONSUMABLES REQUIREMENT AT THE RIG SITE: .................................... 18

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Mudlogging Customer Requirement Manual

Introduction
This Customer Requirements Manual sets out the reporting requirements for the
Mud Logging services for the PNG LNG project.
The Reporting Requirements and Formats set-out in this document are to be
adhered to by the Baker Hughes team with oversight by EHL’s contract Wellsite
Geologist. Any required deviations from the formats set out should be discussed
and agreed with the ExxonMobil Operations Geologist.

1. Project Overview

Hides Gas Field, Papua New Guinea Highlands

The Hides gas field, located in the Highlands of Papua New Guinea, is situated
along the NW-SE trending compressional Hides anticline. Four wells (Hides 1-4)
have penetrated the field’s Toro and Digimu sandstone reservoirs along an
approximately 15 km section of the anticline. Topography is rugged along the
anticline and varies from ~1700-2700m above mean sea level (AMSL). The
topographically highest well, Hides-1, was drilled at ~2690m AMSL and the
topographically lowest well, Hides-4, was drilled at ~1665m AMSL. All of the Hides
wells intersected a varied stratigraphic section across the field, from a thin veneer of
soils and volcaniclastics overlying karsted limestone at the surface through various
marine to marginal marine silts, mudstones and sandstones, down to the main
reservoir intervals, the Toro shoreface sandstone and the Digimu sandstone. The
field is bound to the southwest by the main Hides thrust fault that formed the Hides
anticline and there is further evidence of thrusting within the anticline in well and
seismic data. Limited production of gas from Hides-1 & -2 (feedstock for Porgera
Gold Mine electrical power plant) has occurred from the field since 1991. The Hides
gas resource is to be developed as feedstock for the PNG LNG project from 4 well
pads located along the axis of the surface expression of the anticline. Each well pad
will host 3 cellars plus one contingency cellar and initially two production wells. One
produced water disposal well is to be drilled from a separate well pad at the
southeast end of the anticline.

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1.1. Official Company Name

The official company name for reporting and log heading purposes is:
ESSO HIGHLANDS LTD
All logos on logs or reports should match the Baker Hughes Logo and the PNG
LNG logo.

1.2. Drilling Rig

Rig Name: Nabors 702 and 703

1.3. Basin/Area
Basin :- Papuan Basin
Location:- Hela Province

1.4. Well Naming Convention

The wells in the Hides/Angore area are all pre-determined in the following
convention; Hides B1
Field: Hides
Well Pad B
Well No: 1

Well name: Hides B1

1.4.1. Sidetracks
Please check with the Operations Geologist with regards to the naming
conventions for wells which are sidetracked or By-passed. In general, wells
which are sidetracked will be named Well Name ST1 (e.g., Hides B1 ST1).

All data for the well needs to be presented on the composite logs and LAS
files. If, for example, a well was drilled down to 2500m and was then
sidetracked at 2000m then the final logs would cover the original hole down to
2000m and then continue with the sidetrack data from 2000m to TD. The
original hole data from 2000m to 2500m should be attached to the end of the
composite log and clearly labeled.

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1.5. Failure Reporting

Any sensor, computer or any equipment failures or service quality issues should
be reported to the Wellsite Geologist, and a report sent to the Operations
Geologist.

1.6. Well Data Security

The following procedures are to be followed at all times at the rig site and camp:
At the rig site, all digital data is to be supplied to ExxonMobil Wellsite Geologist
as set out in the section below. Logs and LAS files should also be given to the
company man if requested. Digital files should be transferred from the LWD unit
to the ExxonMobil Wellsite Geologists’ computer situated in the Mudlogging unit.
File transfer should occur on wellsite network.
At the end of the Project campaign, upon rig release, after all BH Mudlogging
data has been given to ExxonMobil, ALL data is to be erased from the LWD and
Mudlogging Unit’s computers.
Any hard copy data (paper/CD/DVD) that is no longer required MUST be
shredded before disposal.
Confidentiality agreements are in place between ExxonMobil and Baker
Hughes, it is BH’s responsibility to ensure they are being strictly observed.

1.7 LAS General Data

Ensure the SRVC in the LAS header is entered correctly and consistently for
each service. Mud Logging D should be “Baker Hughes”. ExxonMobil’s LAS QC
program uses the SRVC field to identify the LAS type.
Null value should be -999.25.

1.8 Distribution List

The reports will also be given electronically to the ExxonMobil Wellsite Geologist.
They shall load the reports additionally to the Petrolink website.

2. Mud Logging Reporting

All daily reports shall be distributed no later than 05:00 daily, to the assigned
distribution list. Data cut off is 03:00. Check with the Wellsite Geologist for cutoff &
delivery times for logs and files given to the Wellsite Geologist.

The below listed Mud Logging plots, files and reports are the minimum required,
additional reports may be asked for.

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File naming convention

All files presented to ExxonMobil should be named with the following format:
[Well name] [Type of Data] [Depth Interval]
e.g. for the mudlog for HIDES B1 over the interval of 1963m to 2413m, the filename
would be:
HIDES B1 MudLog 1963m-2413m
HIDES B1 DrillLog 1963m-2413m
HIDES B1 GasRatioLog 1963m-2413m
HIDES B1 PressureLog 1963m-2413m

ASCII/Excel data over the same interval would be

HIDES B1 MudLog Drill 1963m-2413m
HIDES B1 MudLog Gas 1963m-2413m

Daily (while drilling)

 PDF of Drilling Data Log
 PDF of Mud Log
 PDF of BHI Morning report
 PDF of Pressure Evaluation Log
 PDF of Gas Ratio Log
 PDF of the Time Log
 LAS/ASCII of the drill and gas data
 Daily Surveillance File
 MSE plot and data (stewarded by drilling)

LOG TYPE SCALE

Mud Log 1:500
Gas Log 1:500
Formation Pressure Log 1:1000
Drilling Data Log 1:1000

Note: Ensure all logs begin at the previous casing shoe.

Weekly report requirement

 Unit weekly checklist to be presented on Monday.
 Consumable list, including calibration gas cylinders.
 Spare parts and backup equipment list

At section TD

 Present a draft copy of all logs for proofing (including header) to Wellsite
Geologist as soon as possible after reaching a section TD. This will save an
enormous amount of work when the logs are delivered to the ExxonMobil
Operations Geology team.
 Create a Time ASCII file for the hole section

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At the end of the well: A draft copy of the following will be required:-


Composite Mudlog with header

Composite Gas Ratio Log with header

Composite Drilling Parameters Log with header.

Composite Pressure Evaluation Log with header.

Hard copy of End of Well Report.
Draft CD/DVD with all the data and PDF’s and EOWR’s. ASCII, Excel and

LAS files
LAS/ASCII depth data should be from spud to well TD for each file.

These products are QC’ed by the Operations Geology team in Melbourne before
finalizing the product.
Final Mudlogging deliverables

Table 1.0 Final Mudlogging deliverables are:

Distribution Prints* CD/DVD
Esso Highlands Ltd 1 2
Oil Search Ltd (OSL) - 1
Santos Ltd - 1
JX Nippon - 1
- 1
Mineral Resources Development Company (MRDC)

National Petroleum Company (NPCP) - 1

Petromin PNG Holding LTD - 1
DPE 2 2
Total 3 10
* Prints
Coloured paper prints (1:200 and 1:500 scale) for whole well.

2.1. Formation Sampling and Analysis

Formation sampling requirements are outlined in tables below. The sampling

interval will relate to rate of penetration and importance of the interval in question.
All cutting samples will be described and monitored for hydrocarbon
fluorescence.

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2.1.1. Formation Sample Interval

Interval Hole Size Formation Sample
(m MD) Interval *
18-5/8” Casing to well 17”, 12 ¼”, 8 ½” Limestone, Silstone, Claystone, 3m
TD. and contingency Sandstone
Samples in foil hole sections
envelopes with metal
tags required.

• Sample interval to be increased or decreased at the discretion of the

Wellsite Geologist and subject to drilling rate and returns.
• Collect and bag samples for all gas peaks.
• If available bit samples are to be taken upon POOH with each drill bit.
Wellsite Geologist to describe these samples and record it in the
Lithological description document.

2.1.2. Formation Samples - Packaging & Labeling

Formation Samples
Type No. of Sets Quantity Set Destination
Washed and Dried Cuttings 1 100 A Kestrel,
gms Melbourne
1 100 B Kestrel,
gms Melbourne
1 100 C DPE, PNG
gms
Samplex Trays 1 D Kestrel,
Melbourne

Unwashed samples maybe requested by the Operations Geologist. These

unwashed samples will be Set E.

IMPORTANT: Please make sure that the sample weights are as per Table
above. BH should weigh the cuttings before they are put into the sample
bags. The sample manifest should contain all the missing sample depths,
also reason for underweight samples.

All samples are to be boxed and labelled (see below) and dispatched as
directed by the Wellsite Geologist. All sample suites are to be accompanied
by a full manifest located (separately) externally in plastic on the first box of
the suite. An additional manifest copy should be included inside the first box.

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The Manifest should explicitly describe the packaged contents as:

Subsurface Rock Samples

All cuttings samples are to be placed and heat-sealed within aluminium foil
pouches. Each pouch is to be annotated with Well Name, Sample Depth, and
Sample Set. All pouches are to be placed within green waxed sample boxes
(see photo below).

A label shall be placed on the top, and on each side (long axis) of each box
showing:
 Well Name
 Depth Range
 Cuttings Sample Set (e.g. A, B, etc.)
 Subsurface Rock Samples

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The cumulative weight and dimensions of each box is to be recorded on the

manifest. This information is to be provided to Drilling Logistics for
transport/export.

The Wellsite Geologist is to advise Operations Geology-Melbourne when the

samples are ready for dispatch and provide manifest information inclusive of
number of boxes and cumulative weight.

Note: Wooden boxes will not be allowed to be shipped to Australia due

to Quarantine regulations.

2.1.3. Formation Sample Distribution

Distribution Washed / Dried Cuttings
Kestrel, Melbourne 1 (Set A)
Kestrel, Melbourne 1 (Set B)
DPE, PNG 1 (Set C)
Kestrel, Melbourne 1 (Set D)

Total 4

At the conclusion of drilling Set A and B (cuttings) and Set D (samplex trays)
are to be forwarded directly to Kestrel marked Attention: Tedd Markowicz. All
boxed sets should be clearly marked for their final destination after
redistribution from Kestrel. The manifest should be emailed to Operations
Geology-Melbourne and Diana Giordano.

KESTREL CORE STORE (Cuttings)

Kestrel Information Management Pty Ltd
596-600 Somerville Rd, Sunshine Vic 3020 AUSTRALIA
Core/Archive Supervisor – Tedd Markowicz
Telephone: 61 - 3 9311-0391
Fax: 61 - 3 9311-0145
Email: diana.giordano@recall.com
CC: kestrel.melbourne@recall.com
CC: Tedd.Markowicz@recall.com

PNG Export and Australia Import Permits will be arranged by ExxonMobil

Drilling Logistics Coordinator-Melbourne.

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Set D is to be forwarded to the PNG Department of Petroleum and Energy

(DPE). Address Set D and all Box labels as:

The Director of Petroleum

Department of Petroleum & Energy
Elanese Street, Newtown,
PORT MORESBY
PAPUA NEW GUINEA
Attention: Mr. Jimmy Haumu
Acting Director Exploration Branch

2.2. Mud Logging Log Formats

2.2.1. Mud Log Header

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Header needs to be attached to the Logs as per the snapshot below:-

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2.2.2. Mud Log Format

 Scales on the log headers and Grid lines will need to be changed as
requested by the Wellsite/Operations Geologist.
 ROP to be plotted every 0.5m.

2.2.3. Pressure Log Format

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 Scales on the log headers and Grid lines will need to be changed as
requested by the Wellsite/Operations Geologist.
 ROP to be plotted every 0.5m.

2.2.4. Drilling Log Format

 Scales on the log headers and Grid lines will need to be changed as
requested by the Wellsite/Operations Geologist.
 ROP to be plotted every 0.5m.

2.2.5. Gas Ratio

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 Scales on the log headers and Grid lines will need to be changed as
requested by the Wellsite/Operations Geologist.
 ROP to be plotted every 0.5m
 NOTE: Analysis track is going to be removed for future logs.

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Daily Time log

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2.2.6. Daily Report

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2.2.7. End of Hole section Time ASCII requirement.

Date Time Bit Depth Tot Depth TVD Depth Block Height ROP Average ROP ins
Hookload WOB Total RPM String RPM Torque SPP T Revol Pump 1
Pump 2 Pump 3 Pump 4 Flow In Flow Out Circ Time Active Acive Pit 1A
Active Pit 2A Acive Pit 1B Active Pit 2B Slug Pit Chemical Pit Reserve Pit 3A Reserve Pit 3B Reserve Pit 3C
Reserve Pit 3D TT A TT B MW IN MW OUT MSE

 Please include any other parameters which may have been missed out in the
table above.

2.3. Mud Logging Las Data File Formats

LAS depth data should be exported with one point every 0.5000m and should be
displayed to 4 decimal places.
LAS time based data should be exported with one point every 10seconds and
should be displayed to 4 decimal places.

The data should be interpolated to reduce large gaps due to null values. Null
value should be -999.25.

Ensure the SRVC in the LAS header is entered correctly as Baker Hughes and
consistently for each service. ExxonMobil’s LAS QC program uses the SRVC
field to identify the LAS type.

Drill data has to be in a separate Excel file.

Gas data has to be in a separate Excel file

3. Consumables requirement at the rig site:

The following consumables are required for each rig.

1. Paper sample envelopes (3”x5”)

2. Plastic coated cardboard boxes for storage of washed and dried cuttings
3. Zip lock plastic bags
4. Cloth sample bags plastic lined (5”x7”) for unwashed cuttings
5. Boxes for storage/shipment of bagged unwashed cuttings samples.
Boxes must meet Australian Quarantine Regulations for transportation of
“Subsurface Rock Samples” into Australia.
6. If required by the company; Banding machine with steel and/or plastic bands
and clips
7. Metal cans (1 liter) with lid locking clips for storage of geochemical cuttings
samples

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8. One (1) liter plastic screw top container

9. Four (4) liters plastic screw top container
10. Permanent, waterproof, marking pens
11. Duct tape
12. Masking tape
13. Clear tape
14. Draeger tubes:
0.2-6ppm H2S
0.5-15ppm H2S
1-200ppm H2S
0.5-10% CO2
1-20% CO2
5-60% CO2

Baker will need to provide the following Mercury Draeger tubes:-

0.05 to 2 mg/m3
14. 2 x Draeger instrument pumps
15. Foil sample bags with tags for (for NAF) ditch cutting sample split
16. 5 x 50 ml bottles for mud filtrate
17. 10 x 1 litre pyrex bottles with screw caps
18. 10 x 1 litre heavy duty plastic bottles with screw cap
19. 10 x 500 ml pyrex bottles with screw caps
20. 15 x 5 litre tin cans
21. 1 x hydrometer & thermometer
22. 50 x balloons/bladders for collection of formation gas samples for analysis.

23. Aluminum foil

24. plastic (serran) wrap
25. 15 x paint pens (red, white & black)
26. 15 permanent marker pens (red & black)
27. Distilled water
28. 10% hydrochloric acid
29. Isopropyl alcohol
30. Phenolphthalin

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31. Alizarin Red

32. Pure calcium carbonate for calcimetry
33. MSDS sheets for all chemicals
34. Blank DVDs and CDs
35. Samplex trays
36. Packaging tape
37. Filament tape
38. Barrier cream & other PPE required to function safely in a NAF environment
39. Nitrile gloves
40. Plastic zip locked bags
41. Sample trays and spot dishes
42. Sieves
43. Calibration Gas 1% Methane
44. Calibration Gas 2.5% Methane
45. Calibration Gas 10% Methane
46. Calibration Gas 100% Methane
47. Calibration Gas 100ppm C1 to C5 gas mixture
48. Calibration Gas 1000ppm C1 to C5 gas mixture
49. Calibration Gas 1% C1 to C5 gas mixture
50. Calibration Gas 5% C1 to C5 gas mixture
51. Calibration Gas 10% C1 to C5 gas mixture
52. Calibration Gas 10% CO2
53. H2S Calibration Gas
54. Printer and Plotter paper and cartridges
55. Isotubes

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