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STEP RATE TEST PROCEDURE <br />The TM -1 well was previously drilled to a depth of 2230 feet and had 10 3 / ", <br />40.5#, J -55 casing set at 1976 feet. On May 3, 2011 the hole was re- entered and <br />deepened to a depth of 2255 feet with a 9 7/8" bit. The hole was circulated clean with <br />an 8.8 lbs/gal. drilling mud and the drill sting was removed. Three joints of 30 ft. drill <br />pipe was picked up and started back into the hole and a mechanical packer was then <br />added to the string and run to a depth of 1933 feet. The bottom of the drill pipe was at <br />2023 feet. The packer was set and the down -hole pressure recording device was run <br />inside the pipe through a pack -off to a depth of 2000 feet with a wireline truck. A Blow - <br />Out Preventer testing unit with a chart recording device was tied in below the pack -off <br />with a valve and a "T" fitting. <br />Each step test was increased by 25 psi and shut in for 15 minutes. The final test <br />was increased to the calculated maximum surface pressure of 140 psi and held for 60 <br />minutes. <br />DOWN - HOLE AND SURFACE PRESSURE REQUIRMENTS FOR TEST <br />The bottom -hole pressure requirement for this test was not to exceed 1170 psi at <br />total depth. The test fluid is 8.8 ppg mud and will result in a calculated static bottom - <br />hole pressure of 1032 psi. (8.8 ppg x 0.052 x Depth (2255') =1032 psi.). Therefore, the <br />calculated surface pressure should not exceed (1170 -1032 = 138 psi.) <br />1 <br />