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Elastiseal V2 lead cement, nitrogen injected to 10 ppg yield 1.61; 35 bbls (80 sacks) of <br />12 ppg Varicem tail cement yield 2.42, displaced with 104 bbls of water. The total cement <br />volume was a 100% excess of calculated annular volume. Cement was circulated to <br />surface with good returns until the plug was dropped for displacement, where the returns <br />were lost and not regained. The lift pressure climbed steadily to 380 psi, slowing as the <br />plug was seated. The pressure was bled off and the floats held. The casing was re- <br />pressured up to 300 psi for 30 minutes for a good MIT (Mechanical Integrity Test). The <br />cementing crew was rigged down and released from the site. The cement was allowed to <br />set for 24 hours prior to running an acoustic cement bond log (CBL). <br />Halliburton Wireline arrived on site for logging at 06:00 hours on September 2, 2013, and <br />rigged up. A gauge ring and CBL tool were run in the hole to 2,093 feet MD KB. The hole <br />was logged up the hole to surface. The CBL indicated a good cement bond to 825 feet, <br />poor to fair cement from 825 feet to 670 feet, and fair to good cement from 670 feet to <br />600 feet. Halliburton performed an annulus top -off job from 600 feet to surface after the <br />well was drilled and the rig was released from location (see page 6). The log was sent to <br />the BLM for approval to proceed with the drill out. Confirmation was received for drill out <br />with a remedial cement top -off job planned after the drilling operations were completed. <br />Drill Out to TD and Well Completion <br />Capstar picked up a slick drilling assembly and ran in the hole, tagging the top of cement at <br />2,195 feet MD KB. The cement and float collar were drilled out to the shoe on <br />September 3, 2013 at 18:30 hours. The mud was displaced with salt saturated drilling <br />fluid. The shoe was drilled out and the BHA was tripped out to pick up the directional BHA. <br />BHA No. 3 was picked up and tripped in the hole at 01:30 hours on September 3, 2013. <br />Capstar began drilling the lateral at 2,230 feet MD KB. The lateral was drilled out, sliding <br />and rotating, to TD of 2,668 feet MD KB with full circulation. TD was reached at 05:00 <br />hours on September 4, 2013. The hole was circulated clean. Magnetic ranging operations <br />Daub & Associates, Inc. Page 4 of 7 13H -R Well Summary Report <br />