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Mr. Travis Marshall <br />Mr. Kent Walter <br />Ms. Wendy Cheung <br />Page 2 of 6 <br />suspected that a sufficient amount of excess cement was not available on -site during cementing operations <br />at TM -4, the first of the wells drilled this year to be cemented. <br />Cementing and cement evaluation logging were conducted by Halliburton. Cement evaluation logging <br />was performed using a circumferential acoustic scanning tool (CAST). A CAST -Fast (CAST -F) was used <br />to log the T1 -P and TM -1 wells, and a CAST - Monocable (CAST -M) was used to log the other wells. <br />Both tools use a single rotating transducer operating in the ultrasonic frequencies and measure the <br />impedance of the material directly behind the casing to assess the quality of the casing to cement bond. <br />The logs were evaluated by specialists at Halliburton using its Advanced Cement Evaluation (ACETM) <br />process. <br />Each ACE report presents an evaluation of the cement to pipe bond for the entire cemented portion of the <br />well. Based on evaluation results, the Halliburton analyst assigns a rating of good, fair, or poor to specific <br />intervals within the well. A rating of "good" indicates that the cement to pipe bond is adequate and the <br />overall cement seal within the designated interval is sufficient and no cross -hole communication is <br />expected within the annulus. A rating of "fair" indicates that the cement to pipe bond is adequate but that <br />small, isolated separations between the pipe and cement are present within the interval; however, the <br />separations are not of sufficient connectedness and frequency to affect zonal isolation. A rating of "poor" <br />indicates that the cement is not adequately bonded to the pipe, and therefore, zonal isolation is likely not <br />maintained and the potential exists for cross -hole communication within the annulus. <br />Cement records, CAST log (including gamma ray log), ACE report, and a graphical representation of <br />evaluation results are provided separately for each of the referenced wells in Attachments A through H. <br />Results of a cement job Distributed Temperature Sensing (DTS) survey conducted by Schlumberger at <br />well T1 -P is also provided in Attachment A. As illustrated on the cement schematics in the attachments, <br />the total depth logged is typically at a higher elevation than the casing point depth. The differences are <br />due to the amount of cement remaining within the well casing upon completion of cementing and the <br />position of the logging sensors relative to the bottom of the logging tool. <br />Cement evaluation results for each of the referenced wells is summarized below. <br />T1 -P (Attachment A) <br />CAST -F log completed: May 25, 2011 <br />Casing Depth: 2,021 feet (ft) below ground surface (bgs) <br />Interval Logged: 40 — 2,000 ft bgs <br />The ACE report prepared by Halliburton indicates the cement to pipe bond is adequate throughout the <br />entire logged interval, extending from the bottom of the log (2,000 ft bgs; upper R1) to the top of the <br />logged interval (40 ft bgs). The bond is rated as good from the bottom of the log (2,000 ft bgs; upper R1) <br />to the lower L5 (1,324 ft bgs) and as fair from the lower L5 (1,324 ft bgs) to the top of the logged interval <br />(40 ft bgs). <br />In addition to the CAST -F log, a cement job DTS survey was conducted at T1 -P by Schlumberger during <br />the cementing operation. The survey provided temperature measurements over the complete length of the <br />cemented interval using fiber -optic technology. The real -time temperature profiles were monitored during <br />the cementing operation. Survey results indicated that changing temperatures in the well bore over time <br />were attributed to the cement curing process. While these results do not by themselves measure the <br />overall integrity of the cement seal, the results do provide evidence that cement was placed throughout the <br />intended interval. <br />