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BOWEN BASIN

PL 204

SPRING GULLY 63

WORKOVER

PROGRAM

-CAVITY COMPLETION PROGRAM-

Electronic CopyK Aw / H Fletcher / J Rodda C White / P LansomM Riley / T Scholefield SG Ops SuperintendentWellsite – OECSG Representative TDCRoma Stores Well File

Hard CopyWellsite – OECSG Representative Wellsite – TDC Rig Manager Completions Engineer

Origin Energy CSG Limited Ground Floor,

South TowerJohn Oxley Centre 339

Coronation DriveMILTON QLD 4064

A.B.N. 68 007 845 338

June 2007Version 1.0

TABLE OF CONTENTS

1. GENERAL INFORMATION 4

2. PROJECT 6

2.1 Description 62.2 Account Code 62.3 Wellsite Control 62.4 Compliance Documents 7

3. OPERATIONS 8

3.1 General 83.2 Key Activities 93.3 Tasks 9

4. SCHEMATICS 28

4.1 Casing and Cementing Record 284.2 Proposed Wellhead Diagram 294.3 Proposed Downhole Diagram 304.3 Live well BOP stack 314.4 Live Workover Layout 32

5 TECHNICAL INFORMATION 33

5.1 Hanger Stripping Procedure 335.2 Guidelines for Flow Test 345.3 Progressive Cavity Pump Specifications (Kudu 300TP1200) 365.4 Drivehead Installation Procedure (Oil Lift H1900) 375.5 Torque Anchor Setting Instructions 395.6 Equipment List 40

6 RECORD DOCUMENTS 41

6.1 Air Drilling Safety Checklist 416.2 Cavitation Record Sheet 506.3 Site Specific Induction 51

1. GENERAL INFORMATIONWELL NAME : SPRING GULLY-63 WELL TYPE : DEVELOPMENT (CAV) AFE No. : 0097

ADMINISTRATION

LOCATION

INTERESTS : % LICENCE :

PL 204

Origin Energy CSG Marketing Pty Ltd 100.000 GDA94 LATITUDE : 25 56 51.914SGDA94 LONGITUDE : 149 05 22.721E

GDA94 ZONE 55 EASTING : 709248GDA94 ZONE 55 NORTHING :

7128432

SEISMIC

LINE:

Not on line

STATION:GROUND LEVEL (m G.L.): 386.00 metresROTARY TABLE - RIG 1 (m R.T.): 388.50 metresFINAL T.D. (m AMSL): -489.0 metres

AMSLFINAL T.D. (m R.T.): 877.5 metres R.T.INTERMEDIATE T.D. (m R.T.): 803.5 metres R.T.RIG 1: MDC#141RIG 2: TDC#1NEARBY FACILITIES/WELLS :

"Closest point FROM THIS well"

822m to SG23TOTAL %

100.00

OBJECTIVES (All RT depths based on Rig1) STRATIGRAPHIC PROGNOSIS (All RT depths based on Rig1)

FORMATION DEPTHS

DEPTHS

Primary : m AMSL m R.T. FORMATION m AMSL m R.T. THICK(m)

*CRB3 Seam CRB2 Seam CRB1 Seam

Total Thick:

1.51.03.0

5.5

-425-436-456

813.5824.5844.5

Hutton Sst Evergreen

Fm Precipice Sst

Precipice - Braided Stream Facies

Rewan Fm Bandanna Fm Kaloola

Mbr

386.083.0-52.0-77.0-141.0-415.0-459.0

2.5305.5440.5465.5529.5803.5847.5

303.0135.089.064.0274.044.0

Secondary : m AMSL m R.T.

* Geophysical picks.

TOTAL DEPTH -489.0 877.5FORMATION EVALUATION

MISCELLANEOUS INFORMATION

MEASUREMENTS (m R.T.)

DEVIATION

WIRELINE LOGGING TOP BASE SPECIFICATIONS

The well is to be kept vertical.GR-Cal-Density 7" casing

(Intermed TD)

TD GR to surfaceHigh resolution density over coals

CBL surface TD post cementing of casing

ALL LOGS TO BE REFERENCED TO FIRST RIG - MDC RIG#141; RT=2.5m+GLmAMSL

MUDLOGGING

Wellsite geologist to pick 7" csg point.OTHER INFORMATION

RIG1: The well is to drill to ~100m and set surface casing. The well will be mud drilled to ~10m above CRB3 (Intermediate TD), followed by setting 7" casing. RIG2: Drilling will continue to TD, followed by wireline logging. The coals will then be cavitated.

CORING

No

FORMATION TESTS

No

EXPLANATIONS / JUSTIFICATIONS REMARKS / RECOMMENDATIONSVELOCITYSURVEY No Prognosis is based on SG23 + PrecBSF isopach +

PrecBSF, Rewan Fm & Top Bandanna Coal Depth Structure maps. RIG2: The Driller is to pick and record drilling breaks to ascertain approximate coal depths & thicknesses. TD is picked as ~30m below the Kaloola Mbr.

SWCs No

RFTs No

CHECKED & AGREED

DRILLING MANAGER TEAM LEADER:

Origin Energy CSG Limited - Drilling and Completions Page: 4 of 53SPRING GULLY 63 WORKOVER 01 – Cavitation Issued: June 2007I:\Spring Gully\Spring Gully 63\Workover\01-Cavitation\Spring Gully 63 Workover Program.doc

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Page:5 of 53Issued: June

WELL CONSTRUCTION SUMMARY

Coal depths are prognosed from Geological Well spec cards. Coal tops & bottoms are to be picked by the driller based on drilling breaks while drilling the 6-1/8” hole section. The driller must pay special attention to picking coal tops based on drilling breaks as logs may not be run if hole conditions are poor post drilling the 6-1/8” hole section. The drilling breaks (top & bottom) will be the only indication of the coal tops and coal thicknesses if logs are not acquired. Blooie line returns should also be monitored for indications of coal seam depths.

An ROP Log must be kept when drilling through the coals to aid in determining coal thickness in the event that logs cannot be acquired.

Spring Gully 63

Casing and Hole Details (Prognosed)Hole Size

Hole Depth (mRT)

Casing Size Casing Set Depth (mRT)

12-1/4” 314 9-5/8” 36ppf K55 BTC

309.19

8-1/2” 798.5 7” 23ppf NT-80 BTC

796.92

6-1/8” (*)

867.5 N/A N/A

Coal Depth (Prognosed Only)Coal Unit From

(mRT)To

(mRT)Thick (m)

Bandanna

CRB3

813.5 815 1.5

Bandanna

CRB2

824.5 825.5 1

Bandanna

CRB1

844.5 847.5 3

Note: MDC Rig 141 RT is 2.5m

(*) The reported 6-1/8” hole TD is a prognosed depth only i.e. 20 m below the CRB1 or the nearest length of 2 x 3-1/2” EUE

joints below the CRB1.



2. PROJECT2.1 Description

Spring Gully 63 was drilled in PL 204 during the first quarter of 2007, to further develop the coal seam gas resource in the Spring Gully Coal Seam Development Project. The Spring Gully field is located approximately 75 km north east of Roma in the Maranoa Region of South East Queensland.The second stage is to be performed using TDC Rig 1. TDC will drill a 6-1/8” open hole section to TD through the Bandanna coals using air. The air package will meet the minimum requirements of 2700 scfm and 1450psi maximum discharge pressure.The purpose of this document is to outline the processes for management and the technical procedures for drilling the well to the required total depth, performing the cavitation and running a PCP completion for the Spring Gully 63 well utilising the TDC #01.The ‘OE CSG Live Well’ stripping/cavitation BOP stack, consisting of an upper and lower set of double gate rams, 7-1/16” cavity spool, annular preventer, rotating/stripping head and 8” Blooie line will be utilised to drill, cavitate and complete the well.The cavitation campaign will be carried out on a nominal 24 hour day tour for TDC #1 and a nominal 12 hour day for the other contractors.

2.2 Account Code

Well Name Account CodeSpring Gully

63701 0097-52XXX 702 /

703

Purchase Orders must be issued by Brisbane Office to all Contractors except TDC and Vause.

2.3 Wellsite ControlControl of the wellsite is to be managed in the following manner:Stage From To Document AttachmentsPre workover

Spring

Gully Operations Supervisor

Origin

Energy Wellsite Representative

Well

Handover Form Oil/CSM

Completed

Well Summary Card

Post workover

Origin

Energy Wellsite

Spring

Gully Operations

Well

Handover Form Oil/CSM

Downhole Installation Schematic (DHD)Wellhead



Representative

Supervisor Installation Schematic (WHD)Wellhead photograph (Digital)

The Wellsite Representative should liaise with the Operations Superintendent to ensure there is full awareness by both parties of the planned activities at all times. The Wellsite



Representative will report to the Completions Superintendent or delegate on a minimum daily basis during the course of the work program.

2.4 Compliance DocumentsThis program is directly linked to and must be read in conjunction with the Wellsite Safety Management Plan (SMP). The Wellsite SMP includes a list of Regulatory Documents, Safety Standards and Operating Procedures which, in addition to the documents referenced below, are the governing documents for this program of work. These documents must be accessible in electronic or hard copy form to all personnel at the wellsite.Document Title Supplied

byWGPC Wellhead Running Procedure – RP933 OriginDrivehead Installation Procedure OriginTDC Workover Contract (May 2006) OriginStandard Operating Procedures Manual (Rig) TDCSite Safety Management Plan TDCMaterial Safety Data Sheets TDCStandard Operating Procedures VauseVause Contract (May ’06) Vause



3. OPERATIONSALL PERSONNEL ONSITE HAVE THE AUTHORITY TO STOP ANY

ACTIVITY THEY BELIEVE TO HAVE AN UNACCEPTABLE LEVEL OF RISK

3.1 General

1. The tasks listed in this program form a guide for the anticipated workover activities and may need to be modified as the work progresses. Minor changes to the program may be made at the discretion of wellsite personnel in consultation with the Wellsite Representative and the Completions Superintendent. A Drilling Change Control Record approved by the Brisbane Office will be required when: An equipment or well design change has a potential impact on

safety There is a material change to what is documented in this

program The cost impact of the change is greater than $20,000.

2. All personnel participating in the project must receive a Site Specific Induction from the OECSG Wellsite Representative prior to commencement of activities on the site and be outfitted with appropriate PPE. Non- essential personnel and casual visitors should be discouraged from entering the wellsite. Any visitors to the wellsite must receive the Site Specific Induction or a Visitors Induction.

3. Toolbox Meetings (TBM) or Job Safety Analysis (JSA) meetings must be conducted prior to any new or critical operation and any change or variation in the procedure.

4. No equipment is to be moved onto location until Weed Hygiene Declaration forms have been received and approved by the Operations Superintendent. The Origin Wellsite Representative will liaise with the Operations Superintendent, prior to the equipment mobilising to the wellsite to arrange handover (if required) and discuss local issues that may impact on the project.



In all Emergency situations the protection of personnel is paramount. No attempt should be made to enter a designated emergency area.



3.2 Key Activities

1. Move in and rig up2. Install 7” BTC x 7 1/16” 3K tubing head3. Nipple up full cavitation BOP stack4. Drill out 6 1/8” hole to TD5. Flow test well6. Run wireline logs7. Cavitate open hole section8. RIH with clean out string9. Flow test well10. Repeat steps 7-9 as required11. Run PCP completion after consultation with the Brisbane office12. Nipple down BOP stack13. Run rod string and install drivehead14. RDMO

3.3 Tasks

Confirm with the Operations Superintendent Spring Gully that the landholder has been notified of the intended well activity prior to moving the rig and equipment onto location.The Workover rig shall not be moved onto location until the Origin Energy Wellsite Representative is at location.Safety meetings must be held at the appropriate times throughout the following procedures, including field inductions upon arrival. All safety meetings, JSA and TBM shall be documented in the daily report.Fluids are not to be discharged onto the well site, except to an approved pit. The well site is to be cleaned up and restored as soon as is practicable.Downhole and Wellhead diagrams are also required to be supplied to the Spring Gully Operations Supervisor or his nominee within 24 hours of handover.

Drill Well to Total Depth

1. Obtain well handover from OECSG Operations Supervisor (or nominee - use “Well Handover / Handback Form – Oil/CSM Well”).

2. Move the workover rig and ancillary equipment onto location.Note: Prior to rigging up over the well, hold safety meeting

outlining overall workover scenario, designated smoking / hot work areas, emergency phone numbers, safety



board location, designated first



aiders, emergency muster point and location of extinguishers and first aid kits.Ensure that well site communications are established and operational. Confirm well location (including well co-ordinates) and include on safety board. Keep well name, location and emergency contact details by the phone and ensure all personnel are familiar with the phone and emergency number location.

3. Take measurements of the flare pit prior to the start of the drilling / cavitation operations to estimate the size of the cavity at the end of job.Note: If possible estimate the coal volume after each cavitation

cycle and report in the Daily Report.

4. Spot workover rig and rig up carrier over hole. Check alignment of rig ramp / sub-base and rig carrier and confirm all components are secure. Check v-door extension, extensions for stairs & handrails, hydraulic jacking points etc and confirm secure & alignment/fit is adequate.

5. Take on 150bbls of clean water from local water storage (as arranged by FSG).Note(s):

The water storage tank(s) should be kept full with clean water throughout the cavitation and completion operations. Do not allow the water storage tank volume to fall below the well volume (~100bbls). The water may be required at any time for well control operations.

A channel should be dug between the coal collection/flare pit and the Reserve Pit and a 90° vee-notch weir installed for water rate measurement. The coal collection/flare pit and channel will need to be full for water rate measurement to take place.



DO NOT use water stored in drilling mud sump/mud pit to avoid any contamination of the water that will be pumped downhole during cavitation. The mixing of the injected water with any of



the chemicals/polymers used during drilling will result in damage to the coal reservoir.

6. Install 7” BTC x 7-1/16” 3K tubing head into the 7” casing collar. Ensure the tubing head is torqued correctly by aligning BTC torque mark on the tubing head with BTC collar. If possible align the side outlets parallel to the rig.

7. Perform a trial run for the installation of the hanger for confirmation of the tie down bolts extension lengths.The Origin Wellsite representative is to mark and measure the extension lengths of the tie down bolts and record in daily drilling reports (the length of bolt protruding from the flange when bolts are correctly secured). The extension lengths are to be either marked or lengths recorded for use later when landing the hanger.

8. R/U full cavitation BOP stack, (refer to diagram). In the bottom set of the double gate BOP’s install blind rams on the bottom and 3-1/2” pipe rams in the top. Install the same ram arrangement in the upper set of double gate BOP’s. Be sure to rig up and test drillers remote BOP control panel.

9. R/U up 7-1/16” 5K HCR valve to cavity spool side outlet between double gate BOP rams, the other side outlet rig up 2-1/16” x 2” NPT companion flange with 6” x 2” NPT nipple, a 2” 3K ball valve and a 2” flow tee. On one connection to the tee connect the equalising line and the other the annulus pressure gauge line to the drillers console, enabling the driller to monitor both annulus and delivery pressure at all times, and also enabling pressure to be equalised across the blind or pipe rams from below.Note: The manufacturers service recommendations are to be followed.

10. R/U air package and mud pump via a suitable manifold arrangement to



allow air, air/water or water combinations to be circulated down the well via the standpipe or annulus at any time (i.e. circulation to desired fluid medium by operation of relevant ball valve). Refer to the Live Well BOP Stack schematic.



11. R/U the air compressor and mud delivery lines to the delivery manifold. Install 2” dump line to bleed pressure from the standpipe when making / breaking connections. Ensure the standpipe pressure gauge is connected properly. Note(s):

a) Ensure whip checks are on all air lines and shock hoses, that check valves are in place and operational at the discharge of the mud pump and air package.

b) Main air / fluid delivery line to the gate valve on tubing head should be 2” iron rated to 3,000psi minimum and should be pressure tested prior to use and whenever a connection on this line is broken.

c) Confirm that all ball valves used for rig up are rated to 3,000psi.

d) Test air package air delivery / pressure monitoring system and confirm proper operation.

12. Run the blooie line out to the flare pit and ensure the end of the line is at least 150ft from the wellhead. Rig up blooie line auto ignition/burner system. Ensure that blooie line is securely staked down using concrete blocks, chains and binders as necessary.Note: The sample catcher is to be positioned such that the inside plate

is located on the downstream side to collect coal samples in the bottom pipe section above the butterfly valve. See section 4.5 for schematic of desired rig up for air pack, mist pump, mud pump etc.

13. Run a 2-3/8” EUE flare line from one of the tubing head outlets to the flare pit.

14. Stake down all flare lines and air lines.

15. Make up 3 ½ EU landing joint to hanger, and mark at floor height.

16. Function and pressure test all rams (and HCR valve with upper rams) to a low pressure of 200psi and a high pressure of 3,000psi for 5mins –



bleed off pressure.

17. Pressure test blind rams against casing in order to test tubing head connections.Note: All pressure tests must be recorded and labelled.



18. Function and pressure test annular preventer to a low pressure of 200psi and a high pressure of 1,000psi for 5 mins – bleed off pressure.

19. Pressure test Kelly cock to 200psi low and 3000psi high.

20. Complete rig up of air package, rig, mud tanks and ancillary equipment ready for drill out and cavitation operations.

21. Clean, tally, strap and drift 15 x 3-1/2” slick drill collars and 3-1/2” 9.3ppf J55 EUE drilling / work string.

22. Complete the ‘pre-spud’ induction form and send to Brisbane Office with end of well reports.Complete the Pre-spud inspection of the rig and complete the pre spud safety audit checklist. Forward outstanding items from rig inspection checklist to Brisbane office with morning reports.

23. Make up and RIH the following drilling assembly:

6-1/8” Geodiamond S11 PDC bit (no jets) 3-1/2” Reg Box x 2-3/8” IF Box Bit Sub with c/w Baker 1F-2R

Float 15 x 3-1/2” Slick drill collars 2-3/8” IF Pin x 3-1/2” EUE Box X/O Sub 3-1/2” 9.3ppf J55 EUE Tubing drilling/work string

Note: Ensure that a 3-1/2” fullbore stabbing valve is on the rig floor at all times. Record all OD and ID of BHA and work string.

24. Review and complete the Pre Air Drilling Checklist. Hold safety meeting to discuss air-drilling procedures with all crew members on site. Regular safety meetings should be held with day and night crews throughout the course of the cavity completion operations. Complete



the Daily Pre Tour Air Drilling Checklist at the start of each crews tour.



Detailed safety meetings and Job Safety Analyses (JSA’s) should be conducted prior to performing critical or non-routine operations. All meetings are to be documented and records kept of attendees / participants along with the topics discussed.

25. RIH and tag PBTD (784.35mRT)(refer to Casing and Cementing reports of the well).

26. Rig up power swivel complete with dual drilling reins to power swivel. Ensure that a full bore Kelly cock has been installed between the power swivel and the work string. Kelly cock should be pressure tested to 200/3000 psi for 5mins as per BOP stack.

27. Unload well as required and commence air-drilling operations with mist. The misting fluid make-up is shown below:

MISTING FLUID MAKEUP

Description

Concentration

Air requirement Use available equipment capacityMix water 5-10 bbl/hr

Note: Any additional chemicals in the misting fluid are ONLY permitted with prior approval from Brisbane office.

28. Set required torque and weight parameters to optimise drilling rate – record these on the morning report. Drill well to required total depth, (prognosed 867.5mRT), or as directed by the Brisbane Office. The prognosed total depth assumes that the CRB1 coal seam is intersected as prognosed on the well spec card. Driller should pick/confirm coal tops by monitoring for drill breaks – record breaks on the morning report. Blooie line returns should also be monitored for the same purpose.



Record the ROP throughout drilling interval. The ROP log (Graph of penetration versus square root of drilling time) is to be completed continuously as drilling progresses and attached to morning report.

Note: Flow test the well for water and gas rates after each coal seam has been drilled and circulated clean. (These tests are mandatory unless approved otherwise by Brisbane Office.) Perform water tests via the v notch weir, shut down mist pumps (if used) and dry hole for 1 hour prior to water test. For gas flow test refer to Flow Testing Procedures in section 5.2.Note:

a) The reference point for drilled depth is RT of MDC Rig 141 which is 2.5m from GL. Ensure this datum is used on all depth references throughout these procedures. Note: Confirm with Brisbane Office the relative datum for each well.

b) Collect cutting samples when drilling from casing shoe to TD. Load cutting samples in small bags and label properly including the following information:

Well name The estimated depth at which the samples

were originated from Date the sample was taken

c) Take photos of the samples, label properly (well name and depth etc…) and email a copy to Brisbane Office to CSG Drilling with copies to Simon Abbott.

29. Once at TD, determine the flow rates for gas and water as outlined in the Flow Testing Procedures.

30. Kill well using clean water. Source water from local water storage (as arranged by the FSG).



31. Rig into annulus with pump to keep hole full throughout logging trip. Record volume of fluid lost to coals on Daily Report.

32. POOH racking the work string and 3-1/2” slick drill collars. Record IADC bit condition in the Bit Record and on daily report with depth drilled, average ROP and total time WOB.

33. Rig up logging unit and log well as follows;

For Spring Gully 63 run:TLD – GR from TD 6-1/8” hole to the 7” casing shoe.

Log scales to be as follows; Density: 1 to 3 g/cc Density correction: 0.25 to -0.25 g/cc GR: 0 to 200 API Calliper: 2 to 12 inch Bit size: 2 to 12 inch Depth: 1:200

POOH logging tools and rig down logging contractor.

Note(s):a) Two copies of the logs are to be supplied to the onsite Origin

Energy Well Representative at the completion of logging. A copy of the visual logs is to be provided to Simon Abbott in the Brisbane office ASAP.

b) Digital copies of the logs in LAS format are to be supplied to the onsite Origin Energy Well Representative as soon as possible. A copy of the LAS data is to be provided to Simon Abbott in the Brisbane office ASAP.



c) Three final copies of open hole logs are to be supplied to OE CSG Brisbane office within two weeks of logging the last well of this campaign.

d) The reference point for logging is RT of MDC Rig 141 which is 2.5m from GL.

Origin Wellsite Rep. and Rig Manager to inspectthe lease to ensure lease meets requirements.

Rig move all trailers and ancillary equipment to new lease

Conduct w ell induction w ith all crew

Spot pony base and carrier, spot Air Pack, mud pump and otherequipment.

Install 7-1/16" tubing head, perform a trial run for the installation of thehanger for confirmation of the tie dow n bolts extension length.

Nipple up BOP stack as depicted in theattachments

Rig up Air Pack and Mud pump

Nipple up HCR

Rig up 8" Blooie line andgas igniter system.

Rig up all hard lines and airmanifold. Lay out 2-3/8" f lare line

Function and Pressure test BOP's. Test tubing head against low er blinds, 200 low and 3000 high for 5 min. All rams and HCR valve to be tested to 200 low and 3000 high for 5 mins. Annular and RBOP, 200 low and 1000 high for 5 mins.Note: all pressure tests shall be recorded and labeled.

Clean, tally, strap and drift 15 x 3- 1/2" drill collars and 3-1/2" J55EUE tubing. Complete the rig up of all

remaining ancillary equipment.

Complete pre-spud inspection of the rig and complete Pre Air Drilling Checklist. Hold safety meeting to discuss air drilling procedures w ith all crew memebers on site



MIRU Process Guide (flowchart)

Pre Air drilling checklist to be completed prior tospudding the w ell.

Make up drilling BHA, run in holeand tag f loat collar.

Rig up pow er sw ivel, ensure there is a full bore Kelly Cock installed betw een pow er sw ivel and w ork string. Pressure test Kelly Cock, 200 low and 3000 high for 5 min.Note; all pressure tests shall be recorded and labelled

Unload w ell and commence air drilling operationsw ith mist. Maintain ROP record for coal picks.

After drilling each coal seam, picked fromROP and Drilling Break;

1. Collect coal sample ,label appropriately and send to Origin Brisbane.2. Clean across coal seam.

3. Shut dow n mist pumpand blow w ell dry.

Conduct w ater rate test.

Pull back to shoe andconduct gas rate.

Has TDbeen reached?

NoContinue Drilling, e-mailcopy of ROP log to

Brisbane

Yes

Kill w ell and POOH for Logging. Keep w ell toppedup until logging is complete.



Drilling Process Guide (flowchart)



Cavitate Openhole Coal SectionThe following procedures are intended to be a guide only. The OE CSG

Wellsite Representative may vary these procedures in consultation with OE

CSG Brisbane as the cavitation/performance of the coal seam dictates.

1. HOLD SAFETY MEETING – DISCUSS INJECTION/SURGING PROCEDURES WITH ALL WELL SITE PERSONNEL.Note: In addition to the information reported in the Daily Report,

please fill-in the requested data in the Cavitation Record Sheet.

2. With tubing out of the hole, close HCR valve and the upper set of 3-1/2” blind rams. Pressure up on the annulus (and downhole) with the air package and record the time till break over pressure, (air enters the formation) is reached. Continue injecting with air for the prescribed injection time. When injecting into coal be sure to run 10-20 bbls/hr mist on every third cavitation.

3. Open the HCR valve to surge the pressure to atmospheric instantaneously. Monitor the returns for time till water to surface, time till gas to surface (flare) and for coal production with respect to amount, size and proportion of returns.

This operation is to be carried out with the utmost care and safety. A safety meeting must be held prior to this operation. Ensure that all personnel are gathered at the muster point prior to opening the HCR valve.

4. As the flow from the blooie line dies down, repeat steps 2 and 3 for injection/surge operations. The number of cavitations (injection/surge) will be determined by the Origin Energy Wellsite Representative in consultation with the Brisbane office. A guideline for the cavitation schedule is as follows;



Cavitation Set Number of Cavitations

Injection Duration



1 4 2 hours

2 3 4 hours

3 2 6 hours

Note: RIH and clean out the hole at the end of the bleed down period of the last cycle in the cavitation set.

5. Pick up and RIH clean out string, using the primary jet as necessary, the following BHA from bottom up:

• 4-3/4” Hughes ATJ-4 Rock Bit (no jets)• 2-7/8” Reg Box x 2-3/8” IF Box Bit Sub c/w Baker 1F-2R Float• 15 x 3-1/2” Slick Drill Collar c/w 2-3/8” IF Connections• 2-3/8” IF Pin x 3-1/2” EUE Box X/O• 3-1/2” 9.3 ppf J55 EUE Tubing Work string

6. RIH with primary jet and tag fill, record the depth and joint number on the daily report.

7. Establish circulation rate and unload well, pumping air at the rate of 2700 scfm and water slugs as required. Ensure pilot light is on to flare produced gas. When circulation has stabilised, continue RIH until bit is opposite the lower CRB1 coal seam.

The drill string is to be rotated and reciprocated continuously.

This is to be done when cleaning the well or blowing it dry to minimize the chance of getting stuck.

Monitor returns for coal production. Record nature of returns (size, proportion of coal / shale (%), amount etc.) on daily report.

8. Reciprocate and rotate bit opposite coal seam while pumping 2,700



scfm air and half hourly 5-10 bbl slugs of water. Continue to monitor the coal



production both with air only and water slugs are being circulated. Circulate using this method until returns are clean to an acceptable level.Note: Foam is only to be used with prior approval from the Brisbane office.

9. Pull bit above CRB1 to obtain water rate, shut down misting pump and blow well dry with 2,700 scfm air for one hour. Perform water rate test, record the depth of the string, height of water in vee-notch, and the calculated water rate.

10. Pull back into casing shoe, cut off air and turn well’s production through the test line, close upper 3-1/2” pipe rams and measure gas rate for at least one hour via 2” flow prover or choke.

For the basis of future comparisons for water and gas rates, record depth, choke size or height in Vee-notch, pressure for gas and calculated rates on daily report and in plot of flow rates. For the plot of Flow Rates, also record the stage of the operation for each rate. These reports should be sent to the Brisbane office on a daily basis.

11. Bleed down well via blooie line. POOH clean out string with primary jet. Check condition of 4-3/4” bit.

12. Repeat the steps 1-11 as defined above. This injection/surge process will be repeated as directed by OE CSG’s Rig Representative on location and with the injection times as directed by the Brisbane office.

13. Continue the surging / clean out / flow rate measurement process as described above until directed to stop by the Brisbane office.Note: Only with prior approval of the Brisbane office may foam be

used for final clean-up of the well.

14. Once surging / cavitation and testing operations are complete, POOH



with cavitation string using primary jets as necessary, and kill the well in preparation for running the PCP completion.



General Notes on Cavitation:The following are some of the methods that may be used to cavitate the openhole coal sections in the well. It is likely that a combination of the following methods will be required to effectively cavitate the openhole coal sections.

• Circulating with 2,700 scfm air with continuous water rates ranging from1.5 to 2.5 bbls per minute.

• Circulating with 2,700 scfm air with water sweeps ranging from 5 bbls every 30 minutes to 20 bbls hourly.

• Air alone surges, (with 10 – 20 bbls/hr mist).• Air surges with 10 to 20 bbl slugs of water injected at the start of

the injection cycle (this should normally take place at least every third surge with air only).

• Air surges with 20 to 40 bbl slugs of water injected at the end of the injection cycle.

The most appropriate of the above methods (or other variations) to use will depend on how the well is performing, producing coal, nature and size of returns etc. For this reason, throughout the cavitation procedure, continuous notes should be kept on the size of returns (pin head, match head, 1/8”, 1/4”, 1/2” etc.), the relative amount of returns (very light, light, medium, heavy, etc.), and the relative proportion of coal and shale in the returns (e.g. 10% shale). These observations should be summarised and included in each morning report. A member of the rig crew should therefore catch blooie line samples at least every half hour - and immediately notify the company man of any dramatic changes.

Note that foam should not be used without prior approval from the Brisbane office - in order to minimise the potential for damage to the coal reservoir from polymers etc.

The following flow chart shows the steps of a typical cavitation process.



Variations to procedures carried out in any one period or “session” between successive rate tests should be minimised in order to assess the relative effects/benefits of that particular procedure.

In order to assess the effectiveness of cavitation procedures, and the performance of the well, the coal seams should be regularly flow tested. Ideally these tests should be carried out every 24 hours - provided the well can be successfully cleaned up sufficiently for the test to take place. It is preferred that such tests take place post well clean out and prior to initiating the next round of cavitations. Test results should be submitted as part of the morning report to Brisbane office. Guidelines for carrying out flow tests follow below.

It should also be noted that safety meetings must be held at the appropriate times throughout the cavitation procedures

Drill Well w ith 61/8" PDC bit to ~20m below CRB 1. Work Coal Seam w ith 5-10 bbl w ater sw eeps half Maintaining ROP record to pick coal seams.hourly, maintain until w ell cleans up to anacceptable level. Monitor coal returns throughout.

Injection -Pressure up on annulus, record breakover pressure and time. Continue injecting for the prescribed injection time.Flow test w ell for gas and w ater rates POOH drill

string.

Surge - Surge pressure to atmosphere instantaneously via blooie line. Monitor and record returns

Repeat Cavitation, clean out, sw eeps, andgas and w ater f low rate tests

Has thecavitation set been completed

No

YesYes

RIH w ith clean out string, tag and record f ill. Cleanout w ell w ith air and 5bbl slugs of w ater. Monitor coal returns throughout.

Discuss With Brisbane Officew hether to continue w ith cavitations or

not.

Work coal seam w ith w ater sw eeps - most effective volume and timing previously used onw ell. Monitor coal production throughout.

No

Flow test w ell for gas and w ater rates. POOH cleanout string

Is gas / w ater rate stillincreasing?

YesClean up w ell. Run PCP completion.

Estimate the amount of produced coal from thecavitations at the end of the w ell

No



Cavitation Process Guide (Flowchart)



Install PC Pump

Confirmation of the completion to be run must be made with the Brisbane Office prior to running the PCP completion, as the design may change depending on the results of the cavitation program.

1. Ensure well is dead by performing a flow test and open to the 2-3/8” flare line (pump fresh water via the standpipe as required).

2. Confirm PCP selection and tailpipe setting depth with Brisbane Office.

3. RIH with PCP completion on 3 ½” EUE tubing as per the proposed downhole diagram.Note: Check and record PCP stator, rotor and torque anchor

serial numbers on Daily Workover Report and on final downhole schematic. Ensure that all components are cleaned, tallied and drifted.

4. Remove stripper rubber, make up tubing hanger and land hanger.Note: Should stripping of the hanger be required due to well control

issues, refer to the Hanger Stripping Procedure.

5. Screw in tubing hanger tie downs. Confirm that the hanger seals are energised and holding pressure.Note: Correct installation of the hanger and tie down bolts to

be verified by the OE wellsite representative and checked against tie-down extension lengths recorded previously.

6. Install 3” type H BPV in tubing hanger. Nipple down BOP stack.

7. Install 7-1/16” 3K x 3-1/8” 3K composite rod lock onto tubing head. In the 2” NPT outlet install a 2” Sched 160 nipple and 2” 3K ball valve, and in the 3” NPT outlet install a 3” NPT x 1” NPT tapped bull plug and 1” Sched 160 nipple and 1” 3K ball valve. Ensure 2” outlet on rod lock is facing towards the separator.

8. Remove BPV. Install two-way check valve, pressure test wellhead to 2,000psi for 5 mins. Bleed off pressure and remove two-way check valve.Note: All pressures tests must be recorded and labelled.

9. Rig up rod handling equipment and install on top of composite rod lock a 3-1/2” EUE nipple, 3-1/2” Ratigan and rod stripper.

10. RIH with sucker rods and PC pump rotor as per downhole installation diagram.Note: Run a 10’ pony rod above the rotor (with no rod guides), then

run two guides per rod back to surface.The polished rod used with all new Oillift H1900 drive-heads is 1-1/2” with 1” API pin connection.



11. Tag stop pin and calculate space out required.Note: For Kudu 300TP1200 PCP, place rotor ~24” above landing pin with

a maximum of 12” polished rod stick up.



12. Remove 3-1/2” ratigan and rod stripper. Install drivehead and fix rod clamp. All Oillift driveheads are fitted with 3-1/8” 3K flanged connections.

13. RDMO work over rig. Hand well over to operations using the well handover / handback form.

Size ( ")Joints on location Final displ. (psi)

Weight (ppf) Grade Landed depth (mRT)Joints in shoe track Set weight (kLb)

Av. LengthFloat shoe (Y/N)Displ. (Bbls)

Collapse (psi) Burst (psi)

No. of joints runBuoyed wt. (kLb)

Float collar (Y/N)Coupling BTC22515241

YN16565

6340383012.22796.9L-80237



Pump 1 (spm)Pump 2 (spm)PressureTime (mins)Vol. Pumped (Bbls)Mud wt (ppg) 8.40

Wt(ppg)OH/CalAdditives:

ClassExcess (%)

Volume (Bbls)YieldSacksHole size ( '')Mix (bpm)

Water (g/sx)Mix (psi)

Water (Bbls)Start

Design topFinish8.525OH

0349.301552.7576TL8.6

Wt(ppg)OH/CalAdditives:

ClassExcess (%)

Volume (Bbls)YieldSacksInteg. vol (Bbls)Mix (bpm)

Water (g/sx)Mix (psi)

Water (Bbls)Start

Design topFinish

0

Fluid typeWtTime: StartFinishPressure (psi) Initial

Calculated (Bbls)Returns (%) max

Pumped (Bbls)Top plug (Y/N)

Bump pressure (psi)Used (Rig/Unit)Bottom plug (Y/N)Floats held (Y/N)

final min Rate (bpm) Initial final max min 33.5331415913514

YNY01:4001:06

Unit13301021018.30water

OMW (ppg)FIT (ppg)FIT Pressure (psi)Test pressure (psi)EMW (ppg) 0.000

SCHEMATICS

4.1 Casing and Cementing Record

CASING AND CEMENTING REPORTWELL: SPRING GULLY 63. SUPERVISOR: B Swain / R Keegan. DATE:

CASING DETAILS27/03/07

PRE JOB CIRCULATION

PRE-FLUSHVolume (Bbls) 10 Wt(ppg) 8.30 Hyd. Loss (psi) 2 Additives: Kg

TAIL SLURRY

% gals lb% gals lb

LEAD SLURRY

0.5 % CFR-3 gals lb5.0 % HR-5 gals lb

DISPLACEMENT

LOT / FIT

0.00 m

9.625'' 36#

7'' 23#

Top= 0 m

309.2 m

8.5 '' Hole

8.6 # Tail

784.35 m

796.92 m

T.D. 798.5 m

CASING RUN LISTQTY DESCRIPTION LENGTH FROM TO

1 7" Casing Shoe guide 0.32 796.60 796.921 7" Joint 23lb/ft R3 Casing 11.84 784.76 796.601 7" casing Float Collar - Non rotating 0.41 784.35 784.7664 7" Joint 23lb/ft R3 Casing 782.17 2.18 784.351 Land joint 2.18 0.00 2.18

COMMENTS

100 Kg Sapp

SAPP to surface. No Cement to surface.

Origin Energy CSG Limited - Drilling and Completions SPRING GULLY 63 WORKOVER 01 – Cavitation

Page: 29 of 53

18

Hydraulic Drivehead

4.2 Proposed Wellhead DiagramProposed Wellhead Diagram

C - SectionWell: Spring Gully 63

Paste Photo Here 13 15 16

Description12 Nipple13 Ball valve14 Bull Plug15 Nipple16 Ball valve17 Rod Lock18 Drivehead

AccessoriesA Ring gasketB Studs and nuts

Specifications2" NPT, Schedule 1602" NPT box x box, 3000psi 3" NPT x 1" NPT Tapped1" NPT, Schedule 1601" NPT box x box, 3000psi7 1/16" 3k x 3 1/8" 3k Composite Rod LockH1900 Hydraulic, 3-1/8" 3k flanged connection, 1-1/2" P.R

1 x RX-318 x 7/8" x 6-1/2"

Manuf. WGPC WGPC WGPC WGPC WGPCOil Lift Oil Lift

WGPC WGPC

12 17 14

9

810 10

B - Section8 Tubing head 7-1/16" 3k x 7" BTC pin w/- 2 x 3-1/8" 3k SSO WGPC9 Tubing hanger 3-1/2" EUE top and bottom thread with 3" BPV thread WGPC

10 Gate Valve 3-1/8", 3k WGPCWGPC

AccessoriesA Ring Gasket 1 x RX-45

Ground Level

150 mm

2

6 4 B Ring Gasket

57

2 x RX-31

3 1 4 4 6

5

A - SectionWell Details Surface Production Tubing 1 Casing head 9-5/8" x 11" 3k w/ two 2" NPT side outlets, 9-5/8" BTC pin WGPCSize (in) 9-5/8" 7" 3-1/2" 2 Casing hanger 11" x 7", slip and seal WGPCWeight (lb/ft) 36 23 9.3 3 Bull plug 2" NPT WGPCGrade K55 N80 J55 4 Nipple 2" NPT, Schedule 160 WGPCConnection BTC BTC EUE 5 Ball valve 2" NPT box x box, 3000psi WGPCShoe (m RT) 309.19 796.92 6 Elbow 2" NPT 90° WGPC

7 Nipple 2" NPT x 48" long, Schedule 160 WGPCPressure Test Pressure Duration DateExtended Neck Seals

N/A N/A N/A

Xmas Tree

Drafted by Design Approved Installed byInstallation Approved

R.Corbett H Fletcher

Date Date DateDate

19-Jun-0719-Jun-07

Comments

Proposed X Actual


Page: 30 of 53

4.3 Proposed Downhole Diagram

Proposed Downhole Installation Diagram

Well: Spring Gully 63Item

Description

Length

Depth Min ID

1 No.

(m) (mRT) (in) 2

1 RT to top of tubinghead spool 1.702 Tubing Hanger, WGPC TC-1A-B, 6" x 3-1/2" EU, 3" BPV Prep P/N 0.31 1.70 2.9923 81 joints 3-1/2" 9.3ppf J-55 EUE 8rd R2 tubing 773.55 2.01 2.9924 Kudu 300TP1200 PCP Stator, incl tag sub 7.51 775.565 7" x 3-1/2" EUE IPS DTA XB torque anchor S/N 0.34 783.076 Swage, 3-1/2" EUE Box x 2-7/8" EUE Box (c/w collar) 0.24 783.41 2.4417 2-7/8" EUE 8rd pin x pin 1ft fibreglass pup joint (c/w collar) 0.22 783.65 2.3708 5 jts 2-7/8" EUE 8rd Starfibre integral jt fibreglass tubing 43.63 783.87 2.370

End of Tailpipe: 827.50

3

Rod String (from bottom up):A Kudu 300TP1200 PCP rotor w/ 1" API pinB 10' pony rod 3.05C 102 off 1" N97 sucker rods fitted w/ 1" solid rod guides 764.59D 1" N97 pony rods as requiredE 1 off 1" N97 sucker rod fitted w/ 1" solid rod guidesF 1 off 26' x 1-1/2" polished rod w/ 1" API pin 7.92

Do not install rod guides on 10' pony rodInstall two rod guides on all other sucker rods

Stator Serial No.:Rotor Serial No.:

4PERFORATIO

NSGun Charges

Formation

Interval (m RT) Size

Type

SPF

Type

Ph gm

Bandanna Coals: CRB 3

to

CRB 2

to

CRB 1

to5 CAVITATION COMPLETION

6

7 Surface Casing 9 5/8" 36ppf K55 BTC Shoe at 309.2mRT

Production Casing 7" 23ppf NT-80 BTC Shoe at 796.92mRT

Cementing Details8

Remarks:String Weight Calculated (lb)

Actual

Well Site Supervisor Not to ScaleDate of Instalation Proposed X

TD: 867.5 mRTDrafted by R.Corbett Date

:19/06/0

7Re-Completion

Checked by H. Fletcher Date:

19/06/07

Completion


Page: 31 of 53

4.4 Live well BOP stack

LIVE WELL BOP STACK

Well:

TDC #1 Live Well - 3-1/8" 3K

1

2

3

To Driller's pressure gauge

3

5 67

4Blooie line

10 8 9 8 (to flare)

Equalise

11

1114

13 12

14 13 15 14 18 18 14 Kill / Delivery line17 17

To 2 3/8" flare line from delivery

GL manifold

16

C - SectionDescription Specifications Manuf.

1 Rotating Head Grant Model 7368 7-1/16" x 3000lbs flanged bottom with 7-1/16" x 2000lbs side outlet2 Annular BOP Regan Torus 7 1/16" 5K with flanged bottom and studded top3 Double Gate BOP 7 1/16" 5K Townsend Double Rams Studded with 3-1/2" pipe rams4 Flow X 7 1/16" 5K x 7 1/16" 5K x 7 1/16" 5K x 2 1/16" 5K5 Gate Valve 7 1/16" 5K flanged6 Blooie Line 8"7 Companion Flange 2 1/16" 5K x 2" NPT8 Nipple 2" NPT Sched 1609 Ball Valve 2" NPT, 3K

10 Flow Tee 2" NPT, 3K11 Double Gate BOP 7 1/16" 5K Townsend Double Rams Studded with 3-1/2" pipe rams

AccessoriesA Studs & Nuts 24 x 1 1/8"/1 3/8" (step down)B Studs & Nuts 24 x 1 3/8" x 8 1/2"C Studs & Nuts 8 x 1 1/4" x 8 1/2"D Ring Gasket 2 x RX-45/RX-46E Ring Gasket 2 x RX-46F Ring Gasket 2 x RX-39, 1 x RX-24

B - Section12 Tubing Spool 7 1/16" 3K x 7" BTC Pin w/- 2 x 2" NPT threaded outlets13 Nipple 2" NPT Sched 16014 Ball Valve 2" NPT, 3K15 Flow Tee 2" NPT16 Casing Stub 7" BTC Box17 Companion Flange 3-1/8" 3K x 2" NPT18 Gate Valve 3-1/8" 3K

Accessories

A - SectionCasing Head

Comments


Page: 32 of 53

Mud Pump

TDC Misting

TDC Air Pac2700 scfm, max 1450

4.5Live Workover Layout

8" Blooie Line

2-3/8" Flare Line from Annulus

Primary Jet

To AnnulusWell

To Stand Pipe

Vent LineAir

operator

Air ManifoMuffl

TDC

Rig

1

Air/Choke


Page: 33 of 53

5. TECHNICAL INFORMATION

5.1Hanger Stripping ProcedurePrior to strip in and land hanger, verify that the packoff rubber is intact and undamaged and the bore and internal threads are clean and undamaged. Retract all tie downs and then flush the tubing head bowl with clean water to remove any debris that may keep hanger from landing properly. Thoroughly clean and lightly lubricate the hanger packoff rubber with oil or a light grease.

1. Strip in and land hanger as follows: Flow well from tubing head annulus outlet (via 2-3/8” flare line); Close lower 3-1/2” pipe rams; Close Blooie line outlet valve; Open annular BOP and lower hanger as far as pipe rams; Close annular BOP; Open line through bull hose to equalise pressure across lower

pipe rams; Open pipe rams; Close flow through bull hose so that only flow is from the

wellhead annulus outlet; Land hanger in wellhead – confirm wellhead landing properly

(markings on landing joint).

Note: 2-3/8” flare from tubing head annulus outlet is to remain open from this point until the wellhead is nippled up and pressure tested.

2. Run in tubing hanger tie downs by holding a backup on the gland nut, run in each of the tie downs in an alternating cross fashion until the tie downs contact the hanger compression plate. Continue to run in each of the tie downs in an alternating cross pattern to 400 ft lbs.

Note: Once all the tie downs have been run in the extension lengths should be checked and verified with the marks or lengths recorded previously.

3. Bleed off any pressure above hanger via the blooie line, and back out the landing joint.


Page: 34 of 53

5.2 Guidelines for Flow Test

Gas and water rate measurements are used for monitoring cavitation effectiveness by comparing the flow rates following each successive stage of the operation. To be able to compare production results the tests have to be consistent i.e. carried out under the same conditions and depths for all the tests.

For the basis of future comparisons for water and gas rates record depth, orifice size or height in Vee-notch, pressure for gas and calculated rates on daily report and in plot of flow rates. For the Plot of Flow Rates also record the stage of the operation for each rate. These reports should be sent to Brisbane office whenever new rates are recorded.

Flow Tests are to be carried out at regular intervals throughout the drilling and cavitation processes as detailed within these procedures:

a. After drilling each of the main coal seams (CRB3, CRB2, & CRB1)

b. After drilling to 6-1/8” hole TD

c. After each round of cavitations

d. At the completion of the cavitation work after the well is finally cleaned to bottom in preparation for running the well completion.

The following steps are to serve as a guide when performing the flow tests:1. RIH and tag fill, record depth on the daily report.

2. Circulate well clean to below the CRB1 seam. The hole is to be cleaned out to exactly the same depth prior to each well test.That is: If cleaning the hole can only be done to a certain shallower depth below the CRB1 to avoid getting stuck, then subsequent tests are to be carried out at the same depth for all tests that follow.

3. After returns are clean to an acceptable level, shut down misting pump and blow well dry for one hour while on bottom.

4. Pull string back to above CRB 1 for water rate test. Obtain water rate by flowing through Vee-notch weir, calculate the water rate from the height of the water in the notch. Assist flow with air if necessary. Record the depth, height, calculated rate and the air rate on daily report and plot of flow rates.Note: Ensure there is no wash out between flare pits or around Vee notch frame, i.e.: all flow between pits is through the angled notch in the Vee notch weir. When reading the height of water through the


Page: 35 of 53

Vee notch record the height as accurate as possible.


Page: 36 of 53

5. Pull string back to just inside the casing shoe using the primary jet. Ensure string is pulled back to exactly the same depth prior to each well test, or as advised by the Brisbane office.

6. Close the 3-½” upper pipe rams, cut off air and flow the well through the 2” flow prover or choke. Use an appropriate orifice size to obtain approximately 100 psi backpressure (where well conditions and available orifice sizes permit). Monitor the upstream pressure every 5 mins for a minimum of one hour. At the end of one hour record the depth, pressure, orifice size and calculated rate on the daily report and Plot of Flow Rates.If water rate is high and there is significant surging/slugging it may be necessary to lift the well with the assistance of the air package and flow to the pit via the blooie line. In this case the gas rate should be determined by subtracting the equivalent air circulation rate if lifting the well with air.

7. Repeat Step 1 to 6 whenever performing Water & Gas Flow tests maintaining the same conditions (i.e. Depth, air rates and time to clean well, etc…) to be able to compare the different test results throughout the cavitation job.


Page: 37 of 53

5.3 Progressive Cavity Pump Specifications (Kudu 300 TP 1200)


Page: 38 of 53

5.4Drivehead Installation Procedure (Oil Lift H1900)


Page: 39 of 53


Page: 40 of 53

5.5Torque Anchor Setting Instructions


Page: 41 of 53

5.6 Equipment ListWELL NAME: Spring Gully 63WELL AFE: 701 0097-52XXX 702SUPERVISOR: Ian Beck

STOCK NUMBER

EQUIPMENT DESCRIPTION CHARGE CODE

REQUIRED

REQUESTED

RECEIVED

WellheadsA-SectionB-Section7-1/16" Tubing Spool, Hanger and Accessories 1C-Section

Nipple, 2" NPT Sch160 13" NPT 3" NPT bull plug x 1" NPT tap 1Nipple, 1" scheduled 160 1Ball valve, 2" NPT 3K 1Ball valve, 1" 3K 1Ring gasket, RX45 1Ring gasket, RX31 1Composite rod lock 7-1/16" 3K x 3-1/8" 3K 1

Tubulars & AccessoriesTubulars

Tubing, 3-1/2" EUE J55 9.3ppf 87Tubing, 2-7/8" EUE Starfibre 7

AccessoriesPup joint, 2-7/8" EUE 6.5ppf Starfibre - 1' 1Collar, 3-1/2" EUE J55 2Collar, 2-7/8" EUE J55 1Swage, 3-1/2" EUE box x 2-7/8" EUE box 1

Production Equipment - DownholeFlow Control

Torque anchor 7" x 3-1/2" EUE IPS DTA XB 1Pumps

PCP, 300-TP-1200 (200-1200BPD) 1Polished Rods

PR coupling 1" 1Polished rod, 1-1/2", 26' w/ 1" API pin 1

Sucker Rods and AccessoriesSucker rod, 1" N97 fitted w/ 1" solid rod guides 105

Pony rod, 1" Grade D - 12' 1Pony rod, 1" GradeN97 - 10' 1Pony rod, 1" Grade N97 - 8' 1Pony rod, 1" Grade N97 - 6' 1Pony rod, 1" Grade N97 - 4' 1Pony rod, 1" Grade N97 - 2' 1Pony rod, 1" Grade N97 - 1' 1Rod coupling, 1" Slim line 13" x 1" rod guides 210

Production Equipment - SurfaceDrivehead

Hydraulic Drivehead, Oillift H1900 1Cased Hole Services

WirelineSlicklineTCP

StimulationRentalsChemicalsOther Equipment

Tubing Dope Bestolife 2000 14-3/4" Tri-cone Rock Bit 12-7/8" Reg box x 2-3/8" IF box bit sub c/w Baker 1F-2R Float 12-7/8" REG box x 2-7/8" REG pin side ported

sub1

3-1/2" slick drill collar c/w 2-3/8" IF connections 16-1/8" geodiamond PDC bit 13-1/2" Reg box x 2-3/8" IF box Baker 1F-2R

float1

2-7/8" IF Box x 3-1/2" EUE Pin 22-3/8" IF pin x 3-1/2" EUE Box X/O 1


Page: 42 of 53

6. RECORD DOCUMENTS

6.1 Air drilling safety checklist

SAFETY CHECK LIST

There are two checklists to be filled out. The checklists are effectively a summary of both the Origin Energy and Legislative requirements for air drilling

The first checklist is to be completed prior to unloading the well and commencing air-drilling operations. The second should be completed prior to the start of each tour - this can be incorporated into the routine 15 minute pre-tour SAFETY meeting. Additionally, one item from the specific “Air Drilling Procedures” should be nominated daily as the JSA for this meeting and discussed accordingly

Both checklists should be completed by the Driller and signed by both the Airpack Supervisor and the OE Wellsite Representative.


Page: 42 of 53

PRE AIR DRILLING CHECKLIST

Control required In Place/CheckedYes

No N/A

Personal SafetyProgramme reviewed by OE Wellsite Representative and Rig Manager with the crew.

All personnel outfitted with correct standard PPE. Sufficient “non standard” PPE (eg ear plugs) available for and being used by all personnel.

All personnel have been instructed of Emergency Procedures. Signs will be posted 100 metres from the rig on each approach to the location warning “AIR (GAS) DRILLING IN PROGRESS”.

No open fires or naked flames are permitted within 50 metres of location.

No matches, cigarettes or cameras are to be brought onto location. Welding and flame cutting can be authorised on location.All personnel instructed re Wellsite Hot/Cold Work Permitting System.

Automotive equipment not involved in the operation should be should be parked a minimum 50 metres from the location. If possible a designated parking area should be nominated and signposted as such.

All Visitors should park in designated parking area and remove all matches, cigarettes and cameras prior to entering location.

All Visitors must report to the Rig Supervisor for Safety Induction. Visitors are to be discouraged.

GeneralAll engines are to be equipped with explosion resistant ignition. All rig lighting is to be vapour and explosion proof. Wellhead, Blooie line, BOPs and the cellar to be illuminated with flood lights located as far away as possible for proper illumination.

Rig pumps should be connected to the stand pipe and wellhead. Mud tanks are to be filled with appropriate mud sufficient to fill 200% of wellbore volume.


Page: 43 of 53

PRE DRILLING CHECKLIST


No

N/A

General (cont.)Mud pumps must be lined up ready for immediate use. All chain guards should be solidly built and oil bathed if feasible. Use only spark resistant tools and spinning rope (not chain). Keep tool joints and the Kelly drive bushing well doped. Keep all clutches properly adjusted to eliminate sparks. The substructure should not be enclosed and adequately ventilated and should be monitored to insure no accumulation of gas.

Two portable gas detectors onsite. Gas detector calibration confirmed. Person nominated to be responsible for/instructed in gas detector operation.

Quantity and condition of fire protection equipment confirmed. (A minimum of six (6) 20 lb extinguishers scattered at various points is required by law).

Mud gun (Minimum of one by law) permanently mounted under substructure, pointed directly at rotating head and controlled with single valve at pump end.

Continuous gas detection system under substructure and operational. Crew instructed in Emergency Response to Alarm.

BOPsThe BOPs tested as per Section 3.3 of Programme. All valves on the choke manifold should be full opening, steel flanged and checked before installation for working condition and checked periodically.

All ball valves in delivery lines and manifolds are rated to 3000 psi. Function test all BOP, manifold and Blooie line valves each trip. The BOPs must be equipped with two (2) control stations, one near the Driller's position and the other at a safe distance from the well with all lines and connections made of high pressure steel or approved piping.

Two (2) calibrated pressure gauges are to be rigged up to monitor the standpipe pressure and annular pressure. Annular pressure should be taken at or below the 7-1/16” flow cross. The gauges should be positioned such that the Driller can monitor annular and delivery


Page: 44 of 53

pressures at all times.


Page: 45 of 53



No N/A

BOPs (cont.)

The CSO feature of the annular BOP is for emergency use only, to insure safe operation it is not to be closed on open hole more often than necessary.

The choke and testing manifolds should be so constructed that the chokes can be changed without shutting in the flow.

The testing manifold includes nodes for connection of SRO gauge and a gas sampling point.

Flare line fully secured.

Blooie LineBloolie line is tested as per Section 10 of the Drilling Programme and DOERM.

Blooie line fully secured. Bloole line discharge > 46 metres from well. Pilot light burning. Adequate fire break behind Blooie line/flare line pit. Geological sampling point > 15 metres from end of Blooie line. Sample point is not to be kept open - only opened to take samples as required.

Provision for injecting water directly into Blooie line for dust suppression. Safety chains on all bleed hoses. Blooie line/flare line pit has adequate capacity.

Rotating Head Stripper rubber condition checked. Minimum two (2) new stripper rubbers on location. Lubricating system operation okay. Drive nut condition checked.


Page: 46 of 53



No N/A

AirpackAirpack operator has completed proprietary CHECKLIST. Air monitoring equipment is within the calibration date. Layout as per approved lay out plan (attached). Misting chemical quantities checked. MSDS for misting/foaming chemicals onsite.

Drill StringBit jet nozzles/plugs removed. Sub bored out for float. Float in place, Baker model “G” size 1F-2R of size 2F-3R. Float condition checked and serviced if necessary. Backup float sub in drill string. Backup blanking plug (1.875” PXN) organised. OECSG slickline crew available on callout with unit and running/pulling tools.

Full opening Kelly cock in drill string, with key. Full opening stab-in valve on rig floor.


Page: 47 of 53



No N/A

ProceduresGeneral Safety Procedures instructed. Summary Cards for same posted on rig floor. Specific Air Drilling Procedures instructed. Summary Cards for same posted on rig floor. Driller and Airpack Supervisor have clarified “Communications Protocol”.

Well Name: Date:

Name

Position

Signature

Completed by (Driller):

Checked (Airpack Contractor):

Approved (OECSG):


Page: 48 of 53

DAILY PRE-TOUR AIR DRILLING CHECKLIST


No N/A

Personal SafetyAll personnel outfitted with correct standard PPE. Sufficient “non standard” PPE (eg ear plugs) available/being used. Signs posted at each approach to the location 100 metres from the rig warning “AIR (GAS) DRILLING IN PROGRESS”.

No open fires or naked flames are permitted within 50 metres of location.

Any Hot/Cold work permits open. No matches, cigarettes or cameras are to be brought onto location. Automotive equipment not involved in the operation should be should be parked further than 50 metres from the location.

All Visitors should park in designated parking area and remove all matches, cigarettes and cameras prior to entering location.

All Visitors must report to the Rig Supervisor for Safety Induction.

GeneralRig pumps connected to the standpipe and wellhead. Mud tanks filled with appropriate mud to fill 200% of wellbore volume. Mud pumps lined up ready for immediate use. Use only spark resistant tools and spinning rope (not chain). Tool joints and the Kelly drive bushing well doped. Rig floor and under substructure checked for gas. Fire protection equipment checked. Mud guns mounted under substructure operational.

BOPsFunction test all BOP, manifold and Blooie line valves each trip. Flare line fully secured.


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DAILY PRE-TOUR AIR DRILLING CHECKLIST

Control required In Place/Checked

Yes

No N/A

Blooie LineBlooie line fully secured. Pilot light burning. Blooie line/flare pit. Adequate fire break behind Blooie/flare line pit. Sample point is not to be kept open - only opened to take samples as required.

Safety chains on all bleed hoses. Blooie line/flare line pit has adequate capacity.

Rotating HeadStripper rubber condition checked. Minimum two (2) new stripper rubbers on location. Lubricating system operation okay. Drive nut condition checked.

AirpackAirpack operator has completed proprietary daily CHECKLIST. Misting chemical quantities checked. MSDS for misting/foaming chemicals onsite. Misting pump gear output confirmed. Misting chemical quantities checked.

Drill StringBit jet nozzles/plugs removed. Float in place, Baker model “G” size 1F-2R or size 2F-3R. Float condition checked and serviced if necessary.


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DAILY PRE-TOUR CHECKLIST

Control required In Place/Checked

Yes

No N/A

Drill String (cont.)

Backup float sub in drill string. Full opening Kelly cock in drill string, with key. Full opening stab-in valve on rig floor.

ProceduresGeneral Safety Procedures Summary Cards posted on rig floor. Driller and Airpack Supervisor have clarified “Communications Protocol”.

Well Name: Date:

Name

Position

Signature

Completed by (Driller):

Checked (Airpack Contractor):

Approved (OECSG):


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6.2

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6.3

CONVENTIONAL DRILLING– WORKOVER AND COMPLETIONS -SITE SPECIFIC INDUCTION

Origin Wellsite Rep: I.Beck, S.Gore Date:Primary Contractor: TDC Rig 1 Well Name: Spring Gully 63Contractor Rep: Project Engineer: Howard Fletcher

Project OverviewDescription:Current 7” production casing set at 767.11 mRT. PBTD is 754.34mRT . Drill out to prognosed TD of 850.5mRT and cavitate open hole section. Install Kudu 300 TP 1200 PCP, 3-1/2” EUE tubing string and Oil Lift H1900 Hydraulic Drivehead.Objectives:Drill out, cavitate and complete wellScope of Work:1. Move in and R/U2. Install 7” BTC x 7-1/16” 3K tubing head3. Nipple up full cavitation BOP stack4. Drill out 6-1/8” hole to TD5. Flow test well6. Run wireline logs7. Cavitate open hole section8. RIH with clean out string9. Flow test well10. Repeat steps 7-9 as required11. Run PCP completion after consultation with Brisbane Office12. Nipple down BOP stack13. Run rod string and install drivehead14. RDMO

Mandatory Discussion TopicsConfirmation of Origin Wellsite Representative as the Site Emergency ControllerLocation of the Origin & Contractor Safety Management Plans, Emergency Response Plan and SHEC RulesEmergency phone numbers are listed in the Emergency Response PlanActions and authorities in well control situation is documented in Emergency Response Plan


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Discussion of Permit to Work System and designated Permit AuthorityAssignment of two safe evacuation areas (muster points) to ensure area is upwind of hazardous situationAssignment of safe smoking area, butt bins required, cigarettes and lighters to stay in this areaAssignment of a dedicated Hot Work area if welding/cutting etc is requiredAll chemicals onsite must have an MSDS, discuss location of MSDS and chemical storage areaAll personnel must conduct work in a manner compliant with the requirements outlined in the inductionKeep on access roads, advise Rig Manager / Origin Wellsite Rep if leaving locationAll personnel must report any safety incidents, environmental incidents, accidents or nearReview SHEC requirements (SMP, Appendix 5)Discussion of injection and surging activities, and that all personnel must gather at the muster point prior to opening the HCR valveIn all emergency situations the protection of personnel is paramount - no attempt should be made to enter a designated emergency area.

Site Specific Topics / Current Local IssuesProgram, SOP’s, JSA’s to be followed – if necessary do a new JSA to suit the taskRoads are to be watered when the job is finished if requiredNo fluids produced throughout the work program are to be released onto the ground unless to a designated pit.

Activity NomineeSite Safety Manager (Origin) Wellsite RepresentativeSite Safety Manager (TDC) Rig ManagerPermit to Work System Wellsite Permit to Work SystemPermit Authority Rig ManagerEmergency Response Plan Emergency_Response_Plan_SG 63

The undersigned have attended and contributed to the minutes of


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this meeting.


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Attendee Name: Company: Signature: