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continued to slowly drop at approximately 0.2 feet per hour. A meeting took place to <br />discuss the plan forward with NSI stakeholders; including Daub and Claussen personnel, <br />and Bob Warneke of NSI. At approximately 09:35 hours, an alternative proposal by SDI <br />had been accepted to start another sidetrack (ST02) at 2,375 feet MD KB. The sidetrack <br />would intersect approximately 4.2 feet lower than the original well bore and 1 foot higher <br />than the 13H -I. <br />The BHA was tripped back to 2,375 feet MD KB and the well was troughed from 2,365 feet <br />MD KB to 2,375 feet MD KB to build a kick -off ledge. At 13:24 hours, timed - drilling began <br />at 2,373 feet and at penetration rate of 1 fph to 2,395 feet MD KB. The BHA was tripped <br />out of the hole at 02:15 hours on September 8, 2013. The mud motor was dialed down <br />from 2.25 degrees to 1.75 degrees and the PDC bit was exchanged for a 6.75 -inch tri -cone <br />bit. At 04:00 hours, the BHA was tripped back to bottom and drilled ahead on the <br />sidetrack (ST02) from 2,395 feet MD KB to 2,559 feet MD KB. At this point, 170 bbls of loss <br />was observed. The 13H -1 water level rose to 33.4 feet from the initial reading of 650 feet, <br />confirming communication between the two wells at 17:50 hours on September 8, 2013. <br />The 13H -R well TD was called at 2,559 feet MD KB at 18:30 hours. While drilling ahead on <br />ST02, SDI performed surveys every 5 feet from 2,395 feet MD KB to 2,450 feet MD KB and <br />10 -foot surveys from 2,450 feet MD KB to 2,559 feet MD KB. The bit projected total <br />vertical depth (TVD) at the communication point was 2012.67 feet TVD. <br />The BHA was tripped out of the hole and was laid down by 21:30 hours. Capstar began to <br />nipple down. The hole was not filled during the trip out. The Capstar #314 Rig was <br />released from the 13H -R well at 06:00 hours on September 9, 2013. <br />On September 9, 2013, Halliburton performed an annular top -off cement job. The 13H -R <br />cement was topped off using 167 sacks of Swiftcem with 2% calcium chloride in a 15.8 ppg <br />slurry. Returns to surface were not reported. <br />Daub & Associates, Inc. Page 6 of 7 13H -R Well Summary Report <br />