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Capstar built up BHA No. 2, which re -ran the Reed 9.875 -inch tri -cone rock bit and changed <br />the motor to a SDI 7/8 5 -stage (Serial No. 6782) with a 3 degree bend, ran in the hole and <br />established circulation. Drilling resumed at 1,830 feet MD KB at 19:25 hours on <br />July 6, 2013, and drilled to 1,860 feet MD KB (in the L5 Member of the Green River <br />Formation) where circulation was lost again. Circulation was restored and drilling <br />continued to 1,900 feet MD KB. The BHA was pulled out of the hole, having built <br />inclination enough to replace the 3 degree bend motor with the 2.25 degree bend motor. <br />BHA No. 3 (identical to BHA No. 1) was run in the hole and resumed drilling at 03:05 hours <br />on July 7, 2013. Capstar drilled ahead to 1940 feet MD KB, approximately 30 feet above <br />the Dissolution Surface, where circulation was lost again (600+ barrels lost). The BHA was <br />pulled out of the hole and the open -ended drill pipe was tripped in the hole to 800 feet <br />MD KB. The mud volume was re -built with 15% LCM and pumped downhole with no <br />returns. The pipe was pulled out and 50 barrels of mud were pumped down the hole, <br />leaving fluid at the surface holding. <br />A 9.865 -inch reaming tool was run in the hole to 1,000 feet MD KB and attempted to break <br />circulation but became plugged with LCM. The pipe was pulled out and the LCM was <br />cleaned out of the float. The reaming tool was tripped back in to 1,120 feet MD KB, <br />washing and reaming from there to 1,927 feet MD KB (L5 Member stratigraphic zone) with <br />full returns (mud at 45 centipoise (0) viscosity with 5% LCM). Prior to tripping back out of <br />the hole, all returns were lost again. The LCM in the mud was brought up to 18% and 150 <br />barrels were pumped downhole with no returns. The NSI Vice President of Operations <br />called to inform us that the fluids in the Dissolution Surface (DS) monitor well had risen <br />five feet, and it was assumed that the well was in communication with this 10H -1V well. <br />The reaming assembly was pulled out of the hole and 50 barrels of mud were pumped <br />downhole, again with no returns. <br />Daub & Associates, Inc. Page 4 of 13 10H -1V Well Summary Report <br />