SP-02 Drilling Handbook

Domo San Pedro Project

Designed and Prepared By:

Enal Drilling Program SP-02

3883 Airway Drive Suite 340 Santa Rosa, CA 95403 TELEPHONE: (707) 523-2960

Drilling Program Operating Company Field Well Location Well Type Drilling Engineer Date of Issue Enal Domo San Pedro SP-02 Nayarit, Mexico Directional Production Well Louis Capuano III August 19, 2011

Signature Prepared Louis Capuano III Drilling Engineer Reviewed Salvador Espindola Technical Director Energas Alternas, Estudios y Proyectos S.A. de C.V. ThermaSource Inc.

Date

Enal Drilling Program SP-02

Table of Contents

Section: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. General Well Information Surface Drilling Program Intermediate 1 Drilling Program Intermediate 2 Drilling Program Production Drilling Program BOP Wellhead Diagrams Directional Well Plan Geologic Well Plan and Site Map Preliminary Well Cost Estimate Lost Circulation Cementing Procedure Well Kill Procedure Top Job Cementing Procedure Leak-Off Procedure Blind Drilling Procedure Logging Procedure

Enal Drilling Program SP-02

Section A: General Well Information

Well Information Table Domo San Pedro Location Elevation SP-02 Nayarit, Mexico GL: 1337.5 m KB: 7.12 m Planned Days Final Total Depth Surface Coordinates Bottom Hole Target Target Zone: 52 days 2124 211106.51N, 1044320.87W 410.6 m S and 410.6m W from the surface location Granitic Intrusion

Section OH 40 26 17-1/2 12-1/4 8-1/2

Depth Interval MD 6m 100 m 300 m 1020 m 2124 m TVD 6m 100 m 300 m 1000 m 2000 m Casing 30, 98.9 ppf, Line Pipe, Welded pipe 20, 94 ppf, K-55, BTC 13-3/8, 68 ppf, K-55 BTC 9-5/8, 47 ppf, L-80, Tenaris 7, 29 ppf, L-80, Slotted Liner w/ TOL at 970 m MD.

Wellhead Information Flange Size 20 SOW x API 21-1/4, 2M 13-3/8 SOW x 13-5/8 3M Casing Head (must have a minimum bore of 12-3/8) API 13-5/8, 3M x 10 ANSI 900 Series Expansion Spool. 10 ANSI 900 Series Through Conduit Expanding Gate Valve. Pressure Test (psi) 250 / 1000 250 / 2000 250 / 2000 250 / 2000

Enal Drilling Program SP-02 Overview: SP-02 will be drilled as a directional production well. The well is to be drilled from surface to a True Vertical Depth of 2000 m. The directional drilling is intended to encounter a reservoir that lies below the San Pedro Dome. The well will be drilled vertically until the kick off point at 600 m is reached. At that time a directional drilling assembly will be used to build an angle of 25 degrees of inclination toward an azimuth of 225 degrees. Once 25 degrees is obtained, the rig will hold direction and inclination until TD. The rig should expect to encounter granitic formations at 1000 m. This granitic formation can be considered as the reservoir formation. An approximate surface formation temperature of 20C is to be expected. The temperature should rise approximately 15C/100m. The estimated reservoir temperature is 200C. Before the rig arrives on location, the 30 conductor pipe will be set at 6m TVD in a 40 open hole. The 20 surface casing will be set at 100 m in a 26 open hole. The 13-3/8 intermediate casing will be set at 300 m in a 17-1/2 open hole. The 9-5/8 cemented production casing will be set at 1000 m in a 12-1/4 open hole and will be the final casing cemented to the surface. The 8-1/2 hole section will be drilled to 2000 m while maintaining 25 degrees of inclination. The separation between bottom hole location and the vertical will be 580 m. The well will be completed with a 7 slotted liner hung at 970 m. Safety, Hazards and Special Considerations: Surface Hole The surface section of any well is designed to withstand subsurface pressures that may be encountered while drilling to the next casing point. The 20 casing that will be installed in the 26 open hole will withstand any pressures that may be encountered while drilling the 17-1/2 hole section to 300 m. From offset well data, it is recognized that the formations that will be encountered will consist primarily of rhyolite volcanics. There has been some evidence of some obsidian in certain wells in the area. The 26 hole section should be drilled using a mud motor in order to increase the rate of penetration. There has been no sign of lost circulation in this upper section of the wellbore. However it is critical to be prepared to cure losses. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug. Intermediate Hole 1 This intermediate hole section and casing is designed to withstand any subsurface pressures that may be encountered while drilling the 12-1/4 hole section. It is likely to encounter dacites, rhyolites and obsidian in this hole section. These formations are known to have some fractures that may cause lost circulation. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug.

Enal Drilling Program SP-02 Intermediate Hole 2 The 9-5/8 casing string will be the final casing string cemented to the surface. It has been designed to withstand any formation pressure that will be encountered while drilling to TD. It is likely to encounter dacites and rhyolites in this hole section. These formations are known to have some fractures that may cause lost circulation. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug. The 12-1/4 hole section will be drilled vertically to a depth of 600 m, at which time the rig will pull out of the hole and run in with a directional assembly. The directional drilling assembly will begin building angle at 2.5 per 30 m until 25 of inclination is achieved. The well will be directed in a 225 azimuth toward the dome. It should take approximately 300 m to build the required 25. Once this has occurred the rig will hold the 25 of inclination and 225 of azimuth until the casing point of 1000 m TVD (1020 MD) is achieved. Production Hole The 8-1/2 hole section will be the final hole section in the well design. This section will be drilled through the potential reservoir. In order to protect the reservoir productivity, no bentonite mud may be used in this section. It can be assumed that the granitic reservoir formation will be encountered at 1000 m and will continue until the well is at TD (2000 m TVD). It is highly likely that the formations that will be encountered will be fractured resulting in massive lost circulation. Since this is the reservoir section of the well, no Lost Circulation Material or Cement Plugs may be used to cure the losses. If losses are severe then the rig will drill ahead blind with water. The water well and onsite storage must be adequate to supply enough water to drill blind. The section will be drilled using a mud motor and possibly and MWD tool. The MWD usage will depend on circulating temperatures. The 25 of inclination and 225 of azimuth will be maintained while drilling the production section. At section TD (2000 m TVD, 2124 m MD) the bottom hole location should be 580 m from the vertical surface location.

Enal Drilling Program SP-02 Wellbore Schematic

PROPOSED WELL DIAGRAM
for

ENAL
Nayarit, Mexico: Domo San Pedro Project

HOLE Information
CONDUCTOR 40 in to 6 m SURFACE HOLE 26 in to 100 m

CASING Information
CONDUCTOR PIPE
30 in, Welded

SURFACE CASING
20 in, 94 ppf , K-55, Seamless

INTERMEDIATE HOLE 1 17-1/2 in to 300 m

INTERMEDIATE CASING 1
13-3/8 in, 68 ppf, K-55, BTC, Seamless

Top of 7

in Production Liner 1 at 970 m

INTERMEDIATE HOLE 2 12-1/4 in to 1020 m

INTERMEDIATE CASING 2
9-5/8 in, 47 ppf, L-80, Tenaris, Seamless

PRODUCTION HOLE 1 8-1/2 in to 2124 m

PRODUCTION LINER 1
7 in, 29 ppf , L-80, , Seamless

ThermaSource
GEOTHERMAL CONSULTING AND DRILLING

3883 Ai

D i

Enal Drilling Program SP-02

ENAL
Domo San Pedro Project

Days
0 0 10 20 30 40 50 60

500

Measured Depth, m

1,000

1,500

2,000

ThermaSource
GEOTHERMAL CONSULTING AND DRILLING

2,500

Enal Drilling Program SP-02

Section B: Surface Drilling Program

26" Hole Section to 100 m MD / 100 m TVD (20 Casing): Safety / Hazards Considerations in This Section: The surface section of any well is designed to withstand subsurface pressures that may be encountered while drilling to the next casing point. The 20 casing that will be installed in the 26 open hole will withstand any pressures that may be encountered while drilling the 17-1/2 hole section to 300 m. From offset well data, it is recognized that the formations that will be encountered will consist primarily of rhyolite volcanics. There has been some evidence of some obsidian in certain wells in the area. The 26 hole section should be drilled using a mud motor in order to increase the rate of penetration. There has been no sign of lost circulation in this upper section of the wellbore. However it is critical to be prepared to cure losses. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug. Bit & Hydraulics Program Bit Type Nozzles IADC Code RPM Pump Rate 26 Tri-cone 3 x 24 5-1-7 50 60 RPM 800 1000 gpm Mud Program Mud Weight 8.7 9.0 ppg Mud Type Funnel Vis YP PH Gel Polymer / Water-based < 15 cc/30 min 25 45 lb/sq ft 10.5 11.0

See Drilling Fluids Program provided by Mud Engineering Company for further details. Run a maximum of 50,000 lbs WOB. An Average of 35,000 lbs to 45,000 would suffice. 26 BHA w/ Motor 26 BHA w/o Motor Drilling: 1. Move in and rig up on well. 1.1. Mix mud to desired properties. 1.2. Note on tour sheet and morning report when beginning to pick up the 26 BHA. 26 Bit, 9-1/2 Mud Motor, 26 Stab, 1 x 9-1/2 DC, Shock Sub, 26 Stab, 2 x 9-1/2 DC, XO Sub, 3 x 8 DC, XO Sub and 12 x 4-1/2 HWDP. 26 Bit, Near Bit Roller Reamer, 1 x 9-1/2 DC, 26 Stab, Shock Sub, 26 Stab, 2 x 9-1/2 DC, XO Sub, 3 x 8 DC, XO Sub

Enal Drilling Program SP-02 2. Make up 26 BHA and RIH to the top of cement in the conductor at approximately 6 m. 2.1. Circulate and condition mud. 3. Drill 26 hole from 6 m to 100 m. 3.1. The 26 hole section should take 1 bit run. 3.2. Collect, Dry, Bag and Label Formation Samples every 3 m. 3.3. Maintain desired mud properties to ensure proper hole cleaning. 3.4. Drill in singles with Kelly. 3.5. Limit ROP to 10 m/hr. 4. Attempt to cure lost circulation with lost circulation material. 4.1. If losses are severe set lost circulation cement plug. See Lost Circulation Cementing Procedure in Appendix. 5. Take drift shots at approximately 50 m and casing point. 5.1. Have excess mud weighting material on location in order to kill the well. See Well Kill Procedure in Appendix. 6. At TD make wiper trip back to 9-1/2 collars and return to bottom. 6.1. Circulate and pull out of the hole. 7. Run 20, 94 ppf, K-55, BTC casing equipped with a float shoe and stab-in float collar 1 joint above the shoe. 7.1. Tack-weld the float shoe and first three collars. 7.2. Place centralizers in the middle of the shoe joint and every third collar to surface. Leave the centralizer off the first collar below ground level. 7.3. Make sure circulating swage is onsite in order to circulate casing to bottom. 8. Run in the hole with stab-in sub on 4-1/2 drill pipe and stab into float shoe. 9. Cement casing as per cementing program. 9.1. Have 100 m of 1-1/4 pipe on location. 9.2. Perform ECD calculations with cementing personnel before pumping. 10. POOH with inner string and WOC 8 hours. 10.1. If a top job is required, wait a minimum of 4 hours prior to pumping top job cement. 10.2. See Top Job Cementing Procedure in Appendix. Wait a total of 8 hours prior to cutting off the casing.

11. Cut off 20 casing as required for BOP space out.

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Enal Drilling Program SP-02 12. Weld on 20 SOW by 21-1/14, 2M casing head and pressure test to 500 psi. 13. Nipple up 21-1/4 BOP and function test. 13.1. 13.2. 13.3. Install the choke manifold and kill line on mud cross. Well head stack up to consist of the following components. 20 SOW x 21-1/4 2M casing head. 21-1/4 2M x 21-1/4 2M Mud Cross Spool with (2) 3-1/8 2M flanged outlets with valves. 21-1/4 2M Annular 21-1/4 Pitcher Nipple with Flow-T. See BOP Wellhead Diagram in Appendix.

14. Run into the hole with 17-1/2 BHA. 15. Pressure test the BOP and choke manifold to 350 psi for 30 minutes with 10% or less fall off. 15.1. 15.2. Chart the pressure test and retain copies for the regulatory agency and ENAL. Email copies of test data to ENAL.

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Enal Drilling Program SP-02

Cementing Table 1 26 open hole, 20 casing Slurry Details Spacer Lead 10 bbls Mud Clean, 30 bbls Fresh Water, 20 bbls Sodium Silicate Preflush 6 bbls Fresh Water. Inner String 15.6 ppg Top = Surface Bottom = 100 m 100% 191 bbls Class G Cement with 40% Silica Flour. N/A Tail

Cementing method Weight (ppg) Design Excess Approximate Volume of Cement (bbl) Cement

N/A N/A N/A N/A N/A N/A

Pump Lead Cement until cement returns are observed at surface. Then under displace by 1 bbl. Displacement Volume = 3 bbls. Top Job Procedure Follow Top Job Cementing Procedure in Appendix.

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Enal Drilling Program SP-02

Section C: Intermediate 1 Drilling Program

17-1/2" Hole Section to 300 m MD / 300 m TVD (13-3/8 Casing): Safety / Hazards Considerations in This Section: This intermediate hole section and casing is designed to withstand any subsurface pressures that may be encountered while drilling the 12-1/4 hole section. It is likely to encounter dacites, rhyolites and obsidian in this hole section. These formations are known to have some fractures that may cause lost circulation. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug. Bit & Hydraulics Program Bit Type Nozzles IADC Code RPM Pump Rate 17-1/2 Tri-cone 3 x 20, 1 x 24 Center Jet 5-3-7 to 5-4-7 50 60 RPM 800 1000 gpm Mud Program Mud Weight 8.8 9.5 ppg Mud Type Fluid Loss YP PH Gel Polymer / Water-based < 8 cc/30 min 10 35 lb/sq ft 10.5 11.0

Run a maximum of 50,000 lbs of WOB. An average of 35,000 lbs to 45,000 lbs would suffice. 17-1/2 BHA w/o Motor 17-1/2 Bit, 17-1/2 Near Bit Stab, 1 x 9-1/2 DC, 17-1/2 Stab, 9-1/2 Shock Sub, 1 x 9-1/2 DC, 17-1/2 Stab, 3 x 9-1/2 DC, XO Sub, 7 x 8 DC, Drilling Jars, 2 x 8 DC, XO Sub, 12 x 4-1/2 HWDP. (Use this BHA not the BHA in the Directional Program) 17-1/2 Bit, 9-1/2 Mud Motor, 17-1/2 Stab, 1 x 9-1/2 DC, Shock Sub, 17-1/2 Stab, 2 x 9-1/2 DC, XO Sub, 5 x 8 DC, Drilling Jars, 2 x 8 DC, XO Sub and 12 x 4-1/2 HWDP. Dacites, Rhyolites and Obsidian.

17-1/2 BHA w/ Motor Potential Formations Drilling:

1. Pick up the 17-1/2 BHA and run in the hole to the top of cement. 1.1. Clean out cement and drill out float shoe. 1.2. Drill 1.5 m of new formation.

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Enal Drilling Program SP-02 1.3. Perform Leak-off Test. See Leak-off Procedure in Appendix. 2. Drill 17-1/2 vertical hole to the 13-3/8 casing point at 300 m. 2.1. Install drill pipe float in the NBS equipped with high temperature rubber elements. 2.2. Collect, Dry, Bag and Label Formation Samples every 3 m. 2.3. Maintain desired mud properties to ensure proper hole cleaning. 2.4. Limit ROP to 20 m/hr. 3. Attempt to cure lost circulation with lost circulation material. 3.1. If losses are severe set lost circulation cement plug. See Lost Circulation Cementing Procedure in Appendix. An increase in flowline temperature (5.5C in a 30 m interval). 4. Watch for formation markers that indicate shallow geothermal zones: 4.2. Take drift shots at 100 m intervals. 4.3. Monitor the mud properties and utilize corrosion rings for corrosion control. 4.4. Have excess mud weighting material on location in order to kill the well. See Well Kill Procedure in Appendix. 5. The 17-1/2 hole section is expected to take 1 bit run. 5.1. At section TD circulate, survey and make a wiper trip to the 20 casing shoe and POOH. 6. Run 300 m of 13-3/8, 68 ppf, K-55 BTC Casing equipped with a float shoe, 1 joint of casing and a stab-in float collar. 6.1. Weld the shoe track including the float collar and one additional collar. 6.2. Place centralizers in the middle of the shoe track and every third collar to surface. Leave centralizer off first collar below ground level. 7. Make sure circulating swage is onsite in order to circulate casing to bottom. 8. Run in the hole with stab in sub on 4-1/2 drill pipe and stab into float collar. 8.1. Maintain drilling mud properties prior to cementing. 9. Cement casing as per cementing program summarized in Table 2 below. 9.1. Have 100 m of 1-1/4 pipe on location. 9.2. Perform ECD calculations with cementing personnel before pumping. 10. POOH with inner string and WOC 8 hours. 10.1. If a top job is required, wait a minimum of 4 hours prior to pumping top job cement.

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Enal Drilling Program SP-02 10.2. See Top Job Cementing Procedure in Appendix. Wait on top job cement for 8 hours prior to cutting off casing.

11. Cut off 13-3/8 casing as required for the BOP stack up. 12. Weld on 13-3/8 SOW x 13-5/8 3M casing head and pressure test the weld to 1000 psi. Must be leveled with high accuracy. 12.1. 12.2. 12.3. 12.4. 12.5. 12.6. o o 12.7. 13-3/8 SOW x 13-5/8 3M casing head must have a minimum bore of 12-3/8. Complete both a pre-weld and post-weld heat treat on casing head weld. Follow TNG welding procedure for K-55 casing to the ASME 4130 wellhead. Nipple up 13-5/8 BOP and function test. Install choke manifold and kill line on mud cross outlets. The wellhead stack up shall consist of the following components. 13-3/8 SOW x 13-5/8 3M Casing Head with 3-1/8 3M side Outlets. 13-5/8 3M x 13-5/8 5M Crossover Spool. 13-5/8 5M Mud Cross with 3-1/8 5M valves. 13-5/8 5M Double Gate Ram Preventer Bottom Rams Blind Rams Top Rams Pipe Rams 13-5/8 5M x 13-5/8 5M Annular 13-5/8 5M Rotating Head. See BOP Wellhead Diagrams in Appendix.

12.8. Pressure test the Blind Rams and choke manifold to 250 and 1500 psi for 30 minutes with 10% or less fall off. 12.9. Run in the Hole with 12-1/4 BHA. 12.10. Test pipe rams and annular preventer to 250 and 1500 psi for 30 min with 10% or less fall off. 12.11. 12.12. Chart the pressure test and retain copies for the regulatory agency and ENAL. Email copies of test data to ENAL.

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Enal Drilling Program SP-02

Cementing Table 2 17-1/2 open hole, 13-3/8 casing Slurry Details Spacer Lead 20 bbls Mud Clean, 50 bbls Fresh Water, 40 bbls Sodium Silicate Preflush 10 bbls Fresh Water. Inner String 13.5 ppg Top = Surface Bottom = 200 m 100% 162 bbls Class G Cement with 40% Silica Flour. N/A Tail

Cementing method Weight (ppg) Design Excess Approximate Volume of Cement (bbl) Cement

Inner String 15.6 ppg Top = 200 m Bottom = 300 m 0% 50 bbls Class G Cement with 40% Silica Flour.

Pump Lead Cement until cement returns are observed at surface. Then switch and pump entire volume of Tail Cement and under displace by 2 bbls. Displacement Volume = 11 bbls. Top Job Procedure Follow Top Job Cementing Procedure in Appendix.

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Enal Drilling Program SP-02

Section D: Intermediate 2 Drilling Program

12-1/4" Hole Section to 1020 m MD / 1000 m TVD (9-5/8 Casing): Safety / Hazards Considerations in This Section: The 9-5/8 casing string will be the final casing string cemented to the surface. It has been designed to withstand any formation pressure that will be encountered while drilling to TD. It is likely to encounter dacites and rhyolites in this hole section. These formations are known to have some fractures that may cause lost circulation. The rig should attempt to cure the upper loss zones with LCM before trying to pump a lost circulation cement plug. The 12-1/4 hole section will be drilled vertically to a depth of 600 m, at which time the rig will pull out of the hole and run in with a directional assembly. The directional drilling assembly will begin building angle at 2.5 per 30 m until 25 of inclination is achieved. The well will be directed in a 225 azimuth toward the dome. It should take approximately 300 m to build the required 25. Once this has occurred the rig will hold the 25 of inclination and 225 of azimuth until the casing point of 1000 m TVD (1020 MD) is achieved. Bit & Hydraulics Program Bit Type Nozzles IADC Code RPM Pump Rate 12-1/4 Tri-cone 3 x 18 5-3-7 to 6-1-7 70 RPM / 0 Rpm (Directional) 700 800 gpm Mud Weight Mud Type Fluid Loss YP PH Mud Program 8.8 9.5 ppg Gel Polymer / Water-based < 8 cc/30 min
10-35 lbs/sq ft

10.0 12.0

Run a maximum of 60,000 lbs of WOB. An average of 40,000 lbs to 50,000 lbs would suffice. 12-1/4 BHA w/o Motor 12-1/4 BHA w/ Motor 12-1/4 BHA Directional Potential Formations 12-1/4 Bit, NBS, 8 Monel, 12-1/4 String Stabilizer, 1 x 8 DC, 12-1/4 String Stabilizer, 10 x 8 DC, Jar, 2 x 8 DC, XO, 12 x 4-1/2 HWDP 12-1/4 Bit, 8 Mud Motor, 12-1/4 Stab, 8 Monel, Shock Sub, 12-1/4 Stab, 10x 8 DC, Drilling Jars, 2 x 8 DC, XO Sub and 12 x 4-1/2 HWDP. 12-1/4 Bit, 8 Steerable Mud Motor, 12-1/4 Stab, 8 Orientation Sub, 8 MWD, Monel, 13 x 8 DC, Drilling Jars, 2 x 8 DC, XO Sub and 12 x 41/2 HWDP. Rhyolites, Dacites and Granite

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Enal Drilling Program SP-02

Drilling: 1. Make up 12-1/4 Motor BHA and RIH to the top of cement at approximately 260 m. 1.1. Install drill pipe float in the NBS equipped with high temperature rubber elements. 1.2. Circulate and condition mud. 1.3. Drill out cement and shoe track to 300 m. 1.4. Drill 1.5 m of new formation. 1.5. Perform Leak-off test. See Leak-off Procedure in Appendix. 2. Drill ahead to 600 m TVD. 2.1. Collect, Dry, Bag and Label Formation Samples every 3 m. 2.2. Maintain desired mud properties to ensure proper hole cleaning. 2.3. Limit ROP to 20 m/hr. 2.4. Take deviation surveys every 50 m. 2.5. Attempt to keep well vertical. 3. At 600 m pull out of the hole and pick up 12-1/4 Directional BHA. 3.1. Run back into the well. 3.2. Tag bottom and orient directional assembly. 4. Directionally drill 12-1/4 hole to section TD at 1020 m MD / 1000 m TVD. 4.1. Begin building angle at 2.5 / 30 m of hole with an azimuth of 225. 4.2. Once 25 is reached hold angle and drill ahead. It should take 305 m to obtain desired deviation. 4.3. Building should occur with an azimuth of 225. 4.4. Limit ROP to 20 m/hr. 4.5. Collect, Dry, Bag and Label Formation Samples every 3 m. 4.6. Maintain desired mud properties to ensure proper hole cleaning. 4.7. Granitic formations may be present around 1000 m TVD. 5. Attempt to cure lost circulation with lost circulation material. 5.1. If losses are severe set lost circulation cement plug. See Lost Circulation Cementing Procedure in Appendix.

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Enal Drilling Program SP-02 6. Monitor the flowline temperature. Report increases especially those greater than 5.5C/30 m. 6.2. Monitor the mud properties and utilize corrosion rings for corrosion control. 7. The 12-1/4 hole section is expected to take 3 bit runs. 8. At section TD, circulate, make a wiper trip to the 13-3/8 casing shoe and POOH. 9. Run approximately 1020 m of 9-5/8, 47 ppf, L-80, Tenaris connection casing equipped with a float shoe, 2 joints of casing and a stab-in float collar. 9.1. Weld the shoe track including the float collar and one additional collar. 9.2. Place centralizers in the middle of the shoe track and every third collar to surface. Leave centralizer off first collar below ground level. 10. Make sure circulating swage is onsite in order to circulate casing to bottom. 11. Run in the hole with stab in sub on 4-1/2 drill pipe and stab into float collar. 11.1. 12.1. 12.2. Maintain drilling mud properties prior to cementing. Have 100 m of 1-1/4 pipe on location. Perform ECD calculations with cementing personnel before pumping. 12. Cement casing as per cementing program summarized in Table 3 below.

13. POOH with inner string and WOC 8 hours. 13.1. If a top job is required, wait a minimum of 4 hours prior to pumping top job cement. 13.2. See Top Job Cementing Procedure in Appendix. Wait on top job cement for 8 hours prior to cutting off casing.

14. Unbolt Crossover Spool from wellhead. 15. Lift BOP stack off of wellhead and make rough cut on 9-5/8 casing. 15.1. Rough cut must be made according to Expansion Spool Manufacturer Standard Operating Procedure. Every manufacturer uses different dimensions in the construction of the expansion spool. The manufacturer should have a procedure to cut and set expansion spool.

16. Move BOP stack from under rig and set aside. 17. Take measurement and make final cut on casing as per Expansion Spool Manufacturer procedure. 18. Nipple up expansion spool and master valve. 19. Energize pack-off. 20. Nipple up BOP stack.

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Enal Drilling Program SP-02 20.1. o o 20.2. The wellhead stack up shall consist of the following components. 13-3/8 SOW x 13-5/8 3M Casing Head with 2 x 3-1/8 3M side Outlets. 12 ANSI 900 Series x 10 ANSI 900 Series Expansion Spool with 2 x 3-1/8 3M side Outlets. 10 ANSI 900 Series Through Conduit Expanding Gate Valve 10 ANSI 900 Series x API 13-5/8 5M Crossover Spool. 13-5/8 5M Double Gate Ram Preventer Bottom Rams Blind Rams Top Rams Pipe Rams 13-5/8 5M x 13-5/8 5M Annular 13-5/8 Rotating Head. See BOP Wellhead Diagrams in Appendix.

20.3. Pressure test the Blind Rams and choke manifold to 250 and 2000 psi for 30 minutes with 10% or less fall off. 20.4. Run into the 8-1/2 BHA. 20.5. Test pipe rams and annular preventer to 250 and 1500 psi for 30 min with 10% or less fall off. 20.6. 20.7. Chart the pressure test and retain copies for the regulatory agency and ENAL. Email copies of test data to ENAL.

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Enal Drilling Program SP-02

Cementing Table 3 12-1/4 open hole, 9-5/8 casing Slurry Details Spacer Lead 20 bbls Mud Clean, 50 bbls Fresh Water, 40 bbls Sodium Silicate Preflush 10 bbls Fresh Water. Inner String 13.5 ppg Top = 0 m Bottom = 920 m 100% on open hole section 286 bbl Class G Cement with 40% Silica Flour. N/A Tail

Cementing method Weight (ppg) Design Excess Approximate Volume of Cement (bbl) Cement

Inner String 15.6 ppg Top = 920 m Bottom = 1020 m 100% on open hole section 39 bbl Class G Cement with 40% Silica Flour.

Comments: Pump Lead Cement until cement returns are observed at surface. Then switch and pump entire volume of Tail Cement and under displace by 2 bbls. Displacement Volume = 45 bbl Top Job Procedure Follow Top Job Cementing Procedure in Appendix.

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Enal Drilling Program SP-02

Section E: Production Drilling Program

8-1/2" Hole Section to 2124 m MD / 2000 m TVD (7 Slotted Liner): Safety / Hazards Considerations in This Section: The 8-1/2 hole section will be the final hole section in the well design. This section will be drilled through the potential reservoir. In order to protect the reservoir productivity, no bentonite mud may be used in this section. It can be assumed that the granitic reservoir formation will be encountered at 1000 m and will continue until the well is at TD (2000 m TVD). It is highly likely that the formations that will be encountered will be fractured resulting in massive lost circulation. Since this is the reservoir section of the well, no Lost Circulation Material or Cement Plugs may be used to cure the losses. If losses are severe then the rig will drill ahead blind with water. The water well and onsite storage must be adequate to supply enough water to drill blind. The section will be drilled using a mud motor and possibly an MWD tool. The MWD usage will depend on circulating temperatures. The 25 of inclination and 225 of azimuth will be maintained while drilling the production section. At section TD (2000 m TVD, 2124 m MD) the bottom hole location should be 580 m from the vertical surface location. Bit & Hydraulics Program Bit Type Nozzles IADC Code RPM 8-1/2 Tri-cone 3 x 16 5-4-7 to 6-1-7 60 - 100 at surface Mud Weight Mud Type PH Pump Rate Mud Program 8.4 8.6 ppg Water / Brine > 9.0 800 1100 gpm

Run a maximum of 50,000 lbs of WOB. An average of 30,000 lbs to 40,000 lbs would suffice. 8-1/2 BHA w/o Motor 8-1/2 BHA w/ Motor 8-1/2 Directional BHA 8-1/2 Bit, NBS, Monel, 8-1/2 String Stabilizer, 1 x 6-1/4 DC, 8-1/2 String Stabilizer, 14 x 6-1/4 DC, Jar, 2 x 6-1/4 DC, XO, 12 x 4-1/2 HWDP. (Use this BHA not the BHA in the Directional Program) 8-1/2 Bit, 6-1/4 Mud Motor, 8-1/2 Stab, Monel, Shock Sub, 8-1/2 Stab, 12x 6-1/4 DC, Drilling Jars, 2 x 6-1/4 DC, XO Sub and 12 x 41/2 HWDP. 8-1/2 Bit, 6-1/4 Steerable Mud Motor, 8-1/2 Stab, 6-1/4 Orientation Sub, 6-1/4 MWD, 8-1/2 Under-gage Top Stab, 13 x 6-1/4 DC, Drilling Jars, 2 x 6-1/4 DC, XO Sub and 12 x 4-1/2 HWDP.

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Enal Drilling Program SP-02

Potential Formations

Granite

Drilling: 1. RIH with Motor 8-1/2 BHA. 1.1. Install drill pipe float in the bit sub equipped with high temperature rubbers elements. 2. Drill 8-1/2 hole to section TD at 2124 m MD / 2000 m TVD. 2.1. Have under-gage stabilizers onsite in case course direction change is needed. 2.2. Survey at 100 m intervals. 2.3. Adjust BHA as necessary to maintain angle and azimuth. If well deviates from plan consider a directional correction run. 2.4. Building should occur to SW 45 NE with an azimuth of 225. 2.5. Collect, Dry, Bag and Label Formation Samples every 5 m. 2.6. Maintain desired mud properties to ensure proper hole cleaning. 2.7. Monitor the mud properties and utilize corrosion rings for corrosion control. 2.8. Monitor the flowline temperature. Report increases especially those greater than 5.5C / 30 m. 3. If circulation cannot be maintained: 3.1. Pull up to the 9-5/8 casing shoe and begin circulating water. 3.2. Pump theoretical hole volume of water. 3.3. Begin to stage back into the hole trying to circulate with water every 3 stands. 4. Follow Blind Drilling Procedure in Appendix. 5. The 8-1/2 hole section is expected to take 4 bit runs. 5.1. At section TD circulate, make a wiper trip to the 9-5/8 casing shoe and POOH. 6. Rig up logging tools consisting of TP and Geophysical tools 6.1. See Logging Procedure in Appendix. 7. Run logs to TD and back to the 9-5/8 liner shoe. 8. POOH with logging tools. 8.1. Onsite Geologist may want to take spot cores at TD. 9. If logging tools did not reach bottom, then make wiper trip with 8-1/2 BHA to bottom. 10. Run approximately 1154 m of 7, 29 ppf, L-80, Slotted Liner on a 9-5/8 x 7 landing collar.

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Enal Drilling Program SP-02 10.1. 10.2. 10.3. 10.4. 10.5. 10.6. Plan liner for a 50 m liner lap with blank casing. Adjust the amount of perforated liner based on the final section TD. Equip liner with a drillable guide shoe. Weld the bottom four joints of casing. Run liner in the hole on 4-1/2 drill pipe. Set liner on bottom and release from landing collar.

11. POOH and lay down setting tool. 12. Run TP Survey once out of the hole. 12.1. 12.2. Equip TP logging tool with centralizer and sinker bar. See Logging Procedure in Appendix.

13. Test well per Onsite Geologists recommendations. 14. Rig down and move off location.

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Enal Drilling Program SP-02

Section F: BOP Wellhead Diagrams

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Enal Drilling Program SP-02

ENAL SP02 211/4"BOPStack

211/14"Pitcher NipplewithFlowT

API211/4"2M AnnularPreventer

211/4"2MMud Crossw/31/8"

20"SOWxAPI21 1/4"2MCasing Head

20"Casing
GroundLevel

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Enal Drilling Program SP-02

ENAL SP02 135/8"BOP

135/8"5M RotatingHead

API135/8"5M AnnularPeventer

API135/8"5M DoubleGate Preventer

135/8"3M x135/8" 5MCrossoverSpool

133/8"SOWx13 5/8"3MCasing Headw/31/8" valves

133/8"Casing 20"Casing
GroundLevel

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Enal Drilling Program SP-02

ENAL SP02 135/8"BOPw/ExpansionSpool

135/8"Rotating Head

135/8"Annular Peventer

135/8"5MDouble GatePreventer

10"ANSI 900 Seriesx135/8" 5MSpacerSpool.

135/8"x10"900

10"900Master Valve

135/8"3M x10" 900Expansion

133/8"SOWx13 5/8"3MCasing Headw/31/8" valves

133/8"Casing 20"Casing
GroundLevel

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Enal Drilling Program SP-02

ENAL SP02 FinalWellhead

10"900Valve 8"900Valve

8"900Blank Flange

135/8"3M x10" 900ExpansionSpool

133/8"SOWx135/8" 3M CasingHeadw/3 1/8"valves

133/8"Casing 20"Casing
GroundLevel

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Enal Drilling Program SP-02

Section G: Directional Well Plan

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Enal Drilling Program SP-02

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Enal Drilling Program SP-02

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Enal Drilling Program SP-02

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Enal Drilling Program SP-02

Section H: Geologic Well Plan and Site Map

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Enal Drilling Program SP-02

35

Enal Drilling Program SP-02

36

Enal Drilling Program SP-02

Section I: Preliminary Well Cost Estimate

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Enal Drilling Program SP-02

Section J: Lost Circulation Cementing Procedure

Purpose Permeability or Fracture Systems, while good for production zones, are a cause of great concern while drilling the upper hole sections in any geothermal well. These zones cause lost circulation which means that the drilling fluid and the cuttings that the fluid carries do not return to surface. Without these returns all of the cuttings can fall back on the bit causing the bit to get stuck. Full circulation is needed in order to cement the casing string in the well. If losses occur then it may be difficult to get a good cement bond along the length of the casing and if fluid gets trapped between cement and casing then the casing could collapse when heated due to production, so lost circulation needs to be controlled. Minor loss zones can be cured with Lost Circulation Materials (LCM). LCMs are materials that will fill the voids (permeable spaces or fractures) and stop the losses from occurring. However major losses cannot be controlled with LCM and need to be cemented up. In order to cement a lost circulation zone the rig needs to set a balanced cement plug through the zone. The following procedure will instruct how to set a balanced cement plug at any depth. Lost Circulation Cementing Procedure 1. Record the depth at which losses were first encountered and the MD of the bottom of the hole. 2. Pull out of the hole and stand back BHA. 3. Run into the hole with hollow bobber on slick line and check fluid level. 4. Run into the hole open ended. 5. Set slips with open ended pipe 10 above loss zone. 6. Break off Kelly or Top Drive and set back. 7. Pick up and make up drill pipe cementing head. 8. Begin circulating drilling fluid. 9. Determine spacer, cement and displacement volumes. 9.1. See Equations below for volume calculations. 10. Mix cement and pump calculated spacer ahead. 11. Pump calculated cement volume. 12. Pump calculated spacer volume behind. 13. Pump calculated displacement volume. 14. Shut Down Pumps. 15. Pull out of the hole. 16. Clean out drill pipe on surface. 17. Wait on cement 8 hours or until surface samples are hard.

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Enal Drilling Program SP-02 18. Run back into the well and tag cement top. 19. Establish circulation. 19.1. If circulation cannot be established return to Step 1. 20. Drill out cement and back to bottom. 20.1. If circulation is lost return to Step 1 after drilling 5 additional feet. 21. Drill ahead as planned. Equations Nomenclature DH = Hole ID (inch) DDPO = Drill Pipe OD (inch) DDPI = Drill Pipe ID (inch) LSA = Length of Spacer Ahead (ft) LCMT = Linear Length of Cement Plug (ft) LSB = Length of Spacer Behind (ft) LCMTA = Length of Cement in Annulus (ft) LCMTDP = Length of Cement in DP (ft) LDP = Length of Drill Pipe (ft) 1. AnnularCapacity 1.1. CA (bbl/ft) = (DH2 DDPO 2)/1029.4 2. Volume of Spacer Ahead 2.1. VSA (bbl) = LSA * CA 3. Volume of Cement 3.1. LCMT (ft) = determined by engineer. 3.2. CH (bbl/ft) = DH2/1029.4 3.3. VCMT (bbl) = LCMT * CH 4. Volume of Spacer Behind 4.1. LSA (ft) = LSB (ft) 4.2. CDP (bbl/ft) = (DDPI2)/1029.4 4.3. VSB (bbl) = CDP * LSB 5. Volume of Displacement 5.1. LCMTA (ft) = LCMTDP (ft) = LCMT (ft) 5.2. VDis (bbl) = (LDP (LSB + LCMT + LFL)) * CDP

LFL = Depth of Fluid Level (ft) CA = Annular Capacity (bbl/ft) CH = Hole Capacity (bbl/ft) CDP = Capacity of Drill Pipe (bbl/ft) VSA = Volume of Spacer Ahead (bbl) VCMT = Volume of Cement (bbl) VSB = Volume of Spacer Behind (bbl) VDP = Volume of Drill Pipe (bbl) VDis = Volume of Displacement Fluid (bbl)

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Enal Drilling Program SP-02

Section K: Well Kill Procedure

Purpose Geothermal wells are generally considered an underbalanced system, which means that the formations possess less pressure than a static column of water at the same depth. However the some geothermal fields have shown evidence of some over pressured formations that could cause a kick. A kick is defined as an unscheduled, unwanted entry of water, gas or oil into the wellbore. This entry of fluid will cause the well to flow and if left uncontrolled can further cause a blowout situation. The most dangerous type of kick is a gas kick because a migrating gas bubble will continue to increase in size which results in a greater decrease in hydrostatic pressure. The well will continue to flow uncontrolled with this decrease in hydrostatic pressure. One should assume that every kick is a gas kick and treat as such. Kicks can be encountered naturally, but the majority of causes can be controlled at the rig. The following is an example of some of these causes: Insufficient Mud Density Excessive Water Loss of Mud Poor BOP Testing Procedures Failure to Keep Hole Full of Fluid Trapped Gas Below BOPs Poor Pipe Tripping Procedures Water Flushes Lost Circulation Abnormally Pressured Formations Drill Stem Testing Obstructions in Wellbore Failure to Maintain Back Pressure while Underbalanced Drilling Poor Cementing Operations Excessive Drilling Rate Through Sand Kicks can occur whenever a permeable formation or fracture system is exposed to the wellbore. Kicks might be encountered when changes are observed in the following drilling parameters: Pump Pressure Fill on Bottom Flow Return Rate Pit Level Pump Speed Changes Volume to Fill Hole During Trip Mud Density, Temperature, Rate of Penetration Viscosity and Salinity Torque/Drag Size and Shape of Cuttings String Weight If one of the previous identifiers of a kick were detected then follow the Flow Check Procedure below.

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Enal Drilling Program SP-02

Flow Check Procedure 1. 2. 3. 4. Pull up off bottom and space out tool joint to the rotary table. Stop Rotation Shut Down Pumps. Monitor Flow.

If flow does occur then the well must be shut in and killed. There are primarily two methods for killing flowing wells; these are the Drillers Method and the Wait and Weight Method. Both methods require the operator to perform two actions; 1 Weight up the drilling fluid, 2 Circulate out the formation fluid. The difference between the two methods is the order of these operations. In geothermal, the common practice is to use the Drillers Method because it circulates the formation fluid out of the well as soon as possible. Drillers Method is described in the Well Kill Procedure below. Well Kill Procedure 1. Shut in well. 1.1. Make sure Adjustable Choke is closed. 1.2. Close Pipe Rams. 1.3. Open all valves in line to Adjustable Choke (keeping Adjustable Choke closed). 2. Record Initial Data 2.1. Present Mud Weight (MW). 2.2. Depth of Kick: MD and TVD. 2.3. Pit Gain (Kick Size) 2.4. Shut in Drill Pipe Pressure (SIDPP) from standpipe. 2.5. Shut in Casing Pressure (SICP) from choke pressure gage. 2.6. Slow Circulating Rate (SCR) and Pressure (SCP) for 1 pump. 3. Determine Initial Circulating Pressure (ICP) 3.1. ICP = SCP + SIDPP 4. Slowly bring the mud pump up to SCR while keeping the SICP constant with the Adjustable Choke. 5. Once pump is up to speed keep pump pressure equal to ICP using the Adjustable Choke. 6. Continue to pump at ICP using Adjustable Choke for control until the Choke Pressure (Casing Pressure) equals SIDPP. 7. Close Choke and shut pump down. 8. Record SICP and SIDPP 9. Calculate Kill Weight Mud Density (KWM). 9.1. KWM = MW + [SIDPP/(.052*TVD)]

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Enal Drilling Program SP-02 10. Calculate Downhole mud volume. 10.1. Hole Volume = Open Hole without drill pipe * Capacity Factor for Hole Size 10.2. Drill Pipe Volume = Length of Drill String * Capacity Factor for Drill Pipe Size 10.3. Annular Volume for open hole = Section Length * (Capacity factor for open hole Capacity factor for drill pipe). 10.4. Annular Volume for casing = Section Length * (Capacity factor for casing Capacity factor for drill pipe). 10.5. Total downhole mud volume = Hole Volume + Drill Pipe Volume + Annular Volume for Open Hole + Annular Volume for Casing. 11. Weight up mud in pits. 11.1. Make sure that the volume of weighted mud is greater than total downhole mud volume. 12. Calculate Final Circulating Pressure (FCP) 12.1. FCP = SCP * KWM/MW 13. Slowly bring the mud pump up to SCR while keeping the SICP constant with the Adjustable Choke. 14. Once pump is up to speed keep SICP constant using the Adjustable Choke. 15. The Pump rate should remain constant until FCP is reached. 15.1. This means that the KWM has reached the bit. 16. Continue to pump at the same rate while keeping FCP constant on the pump using the adjustable choke. 17. Once KWM has reached surface the well should be killed and static. 18. Shut down pumps. 19. Check for flow. 20. If flow occurs return to step 1. 21. If no flow occurs 21.1. Calculate New Mud Weight 21.1.1. NMW = KWM + 0.3 ppg 21.2. Finish weighting up mud in pits to NMW. 22. Bring pump up to speed. 23. Circulate mud around until NMW returns to surface. 24. Return to bottom and drill ahead.

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Enal Drilling Program SP-02

Section L: Top Job Cementing Procedure

Purpose During the cementing of casing in the wellbore, it is common for cement not to return to surface or for it to fall back due to lost circulation zones or formation breakdown. No matter the cause, the lack of cement at surface requires a top job to be performed. The only difference is the type of top job required. Listed below are the two different situations that require a top job and the procedures to perform the same. No Cement to Surface The following procedure is to be used in the situation where no cement was returned to surface. 1. Wait a minimum of 4 hours prior to pumping top job. 2. Calculate volume of cement needed to fill from surface to top of the deepest loss zone 2.1. Annular Capacity (CA) = ((ID Hole)2 OD Casing) 2)/1029.4 2.2. Volume of Cement = CA * MD of deepest loss zone * 1.3. 2.3. Recommended to continually pump cement until clean cement returns to surface. 3. Pick up and run 1 pipe into annulus. 3.1. Pick up enough 1 pipe to reach the shoe of the previous casing. 4. Pump cement through 1 tubing. 4.1. Do not pump any water in front or behind cement. 4.2. Pump cement slowly into place. 4.3. Recommended to continually pump cement until clean cement returns to surface. 5. Pull tubing out slowly and clean tubing out on surface away from wellbore. 6. If cement returned to surface proceed to next section below. 7. If cement did not return to surface return to step 1. Cement Returns to Surface But Falls Back *DO NOT FILL UP ANNULUS WITH ANY FLUID 1. Wait a minimum of 4 hours prior to pumping cement. 2. Run into the annulus with 1 tubing and tag top of cement. 3. Pick up off the top of cement 1. 4. Pump cement through 1 tubing. 4.1. Do not pump any water ahead or behind cement. 4.2. Pump cement slowly into place. 5. Continue pumping cement until clean cement is present at surface. 6. Pull tubing out slowly and clean out on surface.

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Enal Drilling Program SP-02 7. Return to Drilling Program.

Section M: Leak-Off Procedure

Purpose After each casing string is successfully cemented in place, a pressure test known as a Leak-Off Test (LOT) is performed. This test verifies that the casing, cement and lithological formations that are below the casing shoe can withstand the wellbore pressures required to safely drill to the next casing setting depth. Essentially all flow paths to the surface are sealed off using BOPs and the rig then pumps into the closed wellbore. The pumping is done at a constant flow rate which will increase the internal wellbore pressure until the wellbore begins to take fluids. Once this happens the pump is then shut down and the pressure is monitored and logged in order to create a pressure profile. Below you will find a detailed LOT procedure to be used before drilling the next hole section. LOTs are performed after the casing has been pressure tested and the cement has been drilled out of the casing shoe track. Do not exceed casing test pressure during LOT. Procedure 1. Following completion of the casing pressure test, drill out cement from casing shoe and clean out any rat hole below the casing. 2. Drill 5 of new formation below the casing shoe. 3. Circulate well clean to ensure uniform mud density throughout the wellbore and to verify that the hole stands full of drilling fluid. 3.1. If an Electronic Data Recorder (EDR) is available make sure it is set up and functioning properly. 3.2. If NO EDR is on site then set one man to record pressure, one man to record strokes or volume pumped and one man to record time. 3.2.1. The man recording time will tell the other two when to take a reading. 4. Note the height of the pressure gage above ground level. 5. Measure and record the circulating mud density. 6. Pull drill string inside the casing shoe and set in slips. 7. Disconnect Top Drive or Kelly and set back. 8. Connect cement circulating head. 9. Purge all air out of cementing lines. 10. Start Cement Pumps, pressure test all lines and circulate one drill string volume of mud. 10.1. Pump rate should be 0.5 bbls/min.

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Enal Drilling Program SP-02 10.1.1. Pump rate should be no more than 1 bbl/min. 11. Begin recording data. 11.1. Activate EDR. 11.2. Record time, pressure, flow rate, and total volume pumped every second. 11.3. Take initial readings manually if EDR is not present. 11.4. Record time, pressure, strokes per minute and total strokes every 10 seconds. 11.5. Stop Pumping. 12. Close the pipe rams and start pumping into the well at a steady rate of approximately .5 bbl/min. Once the pump rate has been set do not attempt to make pump rate adjustments during the test. 13. After fracture initiation occurs, when pump pressure levels off continue pumping for at least 5 minutes or until a stabilized injection pressure can be determined from the pressure monitoring system. 14. Note and record the stabilized injection pressure. Shut down the pump, but do not bleed off the pressure. 15. Monitor pressure decline as fluid leaks off into the formation. Continue monitoring pressure decline until fracture closure can be identified. If no clear closure can be seen, continue to monitor until the pressure has stabilized or for a maximum of 15 minutes. 16. Generate a plot of the pump pressure vs. volume pumped as shown in the figure below. 17. Calculate the fracture gradient using the stabilized injection pressure with the equation below. Fracture Gradient = (SIP+(TVD-RF +GH)*MW*0.052)/(TVD-RF) where, SIP stabilized injection pressure TVD - true vertical depth as measured from rotary table GH - pressure gage height above ground level MW - mud weight RF rig floor height above ground level (psig) (ft) (ft) (lb/gal) (ft)

Data Interpretation
The leak off test can be used to define several different pressure values, which are shown in the figure and described below. 1. Breakdown Pressure (BP) - The highest pressure reached when first initiating a fracture. 2. Stabilized Injection Pressure (SIP) - The combination of friction pressure losses in the system and pressure required to hold the fracture open. 3. Instantaneous Shut In Pressure (ISIP) - The pressure measured immediately after flow is stopped and is equal to the pressure required to hold the fracture open to a given width.

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Enal Drilling Program SP-02 4. Closure Pressure (CP) - The pressure at which the fracture closes. This is interpreted as the minimum principle stress.

Leak Off Test Example

700 Breakdown Pressure
2

600

Stabilized Injection Pressure

1.5

400

Instantaneous Shut In Pressure Closure Pressure

1

300

200

0.5

100

0 0 5 10 15 20 25 30 35 40
Volume Pumped Time

Example Leak-Off Test Data Plot

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Pump Rate (bbl/min)

500

Pressure (Psig)

Enal Drilling Program SP-02

Section N: Blind Drilling Procedure

Purpose Permeability or Fracture Systems, while good for production zones, are a cause of great concern while drilling the upper hole sections in any geothermal well. These loss zones in the upper sections can be cured or diminished using LCM or cement plugs. However in the bottom hole sections the loss zones are all potential production intervals, so sealing these zones off is out of the question. In order to drill ahead one must lighten the fluid column with aerated fluid or straight air or drill blind ahead with water. Drilling blind with water is the easier of the two methods, but there are some causes of concern that need to be handled with care. The first problem is proper hole cleaning away from the bit. If the flowrate out of the bit is not great enough to lift the drill cuttings away from the bit and into the surrounding fracture system then a stuck pipe situation could ensue. It is necessary to keep a constant rate pumping through the drill string. A significant falling of cuttings will occur while the pumps are shut off. It is critical to only shut the pumps off when the bit is off bottom. Also when a connection is made it is critical to circulate (turn pump back on) before proceeding back to bottom. To ensure proper hole clean it is also recommended to take frequent wiper trips up to the last casing shoe. This will make sure that an accumulation of drill cuttings have not collected on the drilling tools in the open hole section which could cause a stuck pipe situation. Blind Drilling Procedure 1. 2. 3. 4. 5. 6. 7. 8. 9. Set pump rate at 1000 gpm. Pump into annulus at 5 gpm to prevent cuttings accumulation above shallowest loss zone. Monitor standpipe pressure. Drill ahead as planned. 4.1. Limit ROP to 20 ft/hr. Before connections pull off bottom and circulate to clean hole. 5.1. When making a connection, do not leave pipe static for a long time. Always keep the pipe moving. Every 6 joints (180) pull wiper trip to casing shoe. If stand pipe pressure increases suddenly pull off bottom and into casing shoe. Continue drilling until section TD.

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Enal Drilling Program SP-02

Section O: Logging Procedure

Purpose Once a certain hole section has been drilled or the overall TD of the well has been reached it is necessary to evaluate the lithology of the wellbore. One method of evaluation is to log the wellbore with geophysical tools. These logs need to be run after the well section has been drilled and before the subsequent casing has been installed. This procedure will cover three different procedures; 1) wellbore remains full of reservoir temperature fluid, 2) wellbore has been evacuated due to lost circulation or production intervals, 3) well flows to surface. If the reservoir is full of cool fluid then log normally. Logging Procedure for a Full Wellbore with Reservoir Temperatures 1. 2. 3. 4. 5. 6. 7. 8. Before pulling out of the hole with the drilling assembly, circulate hole clean with cool fluid. Rig up wireline equipment on pad and in derrick. Bolt lubricator onto Rotating Head Assembly. Pump cold water through wellhead side outlets in order to cool well. Run Wireline logs in hole. Log planned interval and remove tools from wellbore. Rig down logging equipment. Return to Drilling Program for casing procedure.

Logging Procedure for an Evacuated Wellbore or Flowing Well 1. 2. 3. 4. 5. 6. 7. 8. Pull out of the hole. Run in the hole with 2 joints of drill pipe. Close annular preventer around drill pipe. Rig up wireline equipment on pad and in derrick. Screw lubricator onto drill pipe. Pump cold water through wellhead side outlets in order to cool well. Run Wireline logs in hole. Log planned interval and remove tools from wellbore. 8.1. Monitor tool temperature. 8.2. Prepare to remove tools before tool temperature threshold is reached. 9. Rig down logging equipment. 10. Return to Drilling Program for casing procedure.

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Enal Drilling Program SP-02

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