Unocal

14141 Southwest Freeway

Sugarland, Texas 77478

Rauch Well #1
Trinity Prospect
Chambers County, Texas
United States of America

7 5/8” Drilling Liner and 5 ½” Production Casing

Cementing Recommendation

Prepared for: Mr. Kenny Moreau

February 17, 2003
Version: 2

Submitted by:
Scooter Tompkins
Halliburton Energy Services
Concourse Houston Us
10200 Bellaire
Houston, Texas 77072-5299
+281.988.2126

Proposal 40627 v.2

 Halliburton appreciates the opportunity to present
this proposal and looks forward to being of service to you.

Foreword

Enclosed is our recommended procedure for cementing the casing strings in the referenced well.
The information in this proposal includes well data, calculation, materials requirements, and cost
estimates. This proposal is based on information from our field personnel and previous cementing
services in the area.

Halliburton Energy Services recognizes the importance of meeting society's needs for heath,
safety, and protection of the environment. It is our intention to proactively work with employees,
customers, the public, governments, and others to use natural resources in an environmentally sound
manner while protecting the health and safety of employees and the public. We are dedicated to a
continuous improvement of our global health, safety, and environmental processes while supplying high
quality products and services to customers.

We appreciate the opportunity to present this proposal for your consideration and we look
forward to being of service to you. Our Services for your well will be coordinated through the Service
Center listed below. If you require any additional information or additional designs, please feel free to
contact myself or our field representatives listed below.

Prepared and Submitted by:

Scooter Tompkins
Technical Advisor

SERVICE CENTER: Victoria, Texas

SERVICE COORDINATOR: Ronnie Bloskas
BULK PLANT: Fresno, Texas
PHONE NUMBER: 800-448-0645

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UNOCAL Rauch Well #1
Job Information 7 5/8" Drilling Liner

Rauch Well #1

Well Intervals:

9 5/8" Intermediate Casing 0 - 8170 ft (MD)

0 - 8145 ft (TVD)
Outer Diameter 9.625 in
Inner Diameter 8.535 in
Linear Weight 53.50 lbm/ft
Casing Grade P-110

12 1/4" Open Hole 8170 - 10370 ft (MD)

8145 - 10314 ft (TVD)
Inner Diameter 12.250 in
Job Excess 25 %

5" Drill Pipe 0 - 7650 ft (MD)

Outer Diameter 5.000 in
Inner Diameter 4.276 in
Linear Weight 19.50 lbm/ft

7 5/8" Drilling Liner 7650 - 10370 ft (MD)

Outer Diameter 7.625 in
Inner Diameter 6.625 in
Linear Weight 39 lbm/ft

Top of Liner 7650 Ft.

Liner Overlap 300 Ft.
Liner Length 2720 Ft.
Calculated Top of Cement 7450 Ft.
Calculated Cement Fill 2920 Ft.
Calculated Lead Cement Fill 1920 Ft.
Calculated Tail Cement Fill 1000 Ft.
Fill on Top of Liner 200 Ft.
Mud Weight 13.5 ppg
Mud Type Oil Base Mud
Estimated BHST 228°F
Shoe Joint (est) 80 Ft.

3
UNOCAL Rauch Well #1
Calculations 7 5/8" Drilling Liner

Spacer:
495.00 ft * 0.3973 ft3/ft * 0 % = 196.67 ft3
Total Spacer = 196.51 ft3
= 35.00 bbl

Cement : (1920.00 ft fill)

200.00 ft * 0.3973 ft3/ft * 0 % = 79.46 ft3
520.00 ft * 0.0802 ft3/ft * 0 % = 41.71 ft3
1200.00 ft * 0.5014 ft3/ft * 25 % = 752.03 ft3
Total Lead Cement = 873.20 ft3
= 155.52 bbl
Sacks of Cement = 719 sks

Cement : (1000.00 ft fill)

1000.00 ft * 0.5014 ft3/ft * 25 % = 626.70 ft3
Tail Cement = 626.70 ft3
= 111.62 bbl

Shoe Joint Volume: (120.00 ft fill)

120.00 ft * 0.2394 ft3/ft = 28.73 ft3
= 5.12 bbl
Tail plus shoe joint = 655.42 ft3
= 116.74 bbl
Total Tail = 601 sks

Total Pipe Capacity:

7650.00 ft * 0.0997 ft3/ft = 762.89 ft3
2720.00 ft * 0.2394 ft3/ft = 651.13 ft3
= 251.85 bbl

Displacement Volume to Shoe Joint:

Capacity of Pipe - Shoe Joint = 251.85 bbl - 5.12 bbl
= 246.73 bbl

4
UNOCAL Rauch Well #1
Job Recommendation 7 5/8" Drilling Liner

Fluid Instructions
Fluid 1: Water Based Spacer
Mod. Dual Spacer @ 14.0 ppg Fluid Density: 14 lbm/gal
279.6 lbm/bbl Barite (Heavy Weight Additive) Fluid Volume: 35 bbl
0.1 gal/bbl Dual Spacer Mixing Aid EXP (Viscosifier)
1 gal/bbl SEM-7 (Surfactant)
0.2 gal/bbl Musol(R) A (Mutual Solvent)
0.3 gal/bbl Dual Spacer Surfactant B (Surfactant)

Fluid 2: Lead Cement

75/25 Poz Premium Fluid Weight 14.30 lbm/gal
2% Bentonite (Light Weight Additive) Slurry Yield: 1.21 ft3/sk
0.3 % Halad(R)-322 (Low Fluid Loss Control) Total Mixing Fluid: 5.37 Gal/sk
0.25 % HR-5 (Retarder) Top of Fluid: 7450 ft
5.372 Gal/sk Fresh Water (Mixing Fluid) Calculated Fill: 1920 ft
Volume: 155.52 bbl
Calculated Sacks: 719.28 sks
Proposed Sacks: 720 sks

Fluid 3: Tail Cement

Premium Cement Fluid Weight 16.20 lbm/gal
94 lbm/sk Premium Cement (Cement-api) Slurry Yield: 1.09 ft3/sk
0.25 % CFR-3 (Dispersant) Total Mixing Fluid: 4.53 Gal/sk
0.1 % WG-17 (Suspension Agent) Top of Fluid: 9370 ft
0.15 % HR-5 (Retarder) Calculated Fill: 1000 ft
4.526 Gal/sk Fresh Water (Mixing Fluid) Volume: 116.74 bbl
Calculated Sacks: 600.75 sks
Proposed Sacks: 605 sks

Fluid 4: Mud
Oil Base Mud Fluid Density: 13.50 lbm/gal
Fluid Volume 246.73 bbl

5
UNOCAL Rauch Well #1
Job Procedure 7 5/8" Drilling Liner

Detailed Pumping Schedule

Fluid # Fluid Fluid Name Surface Estimated Downhole
Type Density Avg Rate Volume
lbm/gal bbl/min
1 Spacer Mod. Dual Spacer @ 14.0 14.0 35 bbl
ppg
2 Cement 75/25 Pozmix Cement 14.3 720 sks
3 Cement Premium Cement 16.2 605 sks
4 Mud Oil Base Mud 13.5 246.73 bbl

NOTE: This slurry and spacer will require lab testing. The additives and concentrations are estimates based on field
experience in the area and may need to be modified prior to the job. The proposed spacer is designed to be generally
compatible with synthetic base mud systems. Compatibility testing with field mud samples may indicate changes in
the additive package and the related costs.

6
UNOCAL Rauch Well #1
Cost Estimate 7 5/8" Drilling Liner

SAP Quote #0
Mtrl Nbr Description Qty U/M Unit Price Gross Amt
7524 PSL - CMT DRILLING LINER - BOM 1 JOB 0.00 0.00

**** Cementing Equipment & Services ****

1 "ZI-MILEAGE FROM NEAREST HES BASE,/UNIT" 100 MI 4.05 810.00

Number of Units 2
2 MILEAGE FOR CEMENTING CREW,ZI 100 MI 2.38 238.00
Number of Units 1
16100 ZI CMTG LINER/SHORT CSG STRING 1 EA 7,118.00 7,118.00
DEPTH 10370
FEET/METRES (FT/M) FT
13 CSG PUMPING,STANDBY UNIT,/6HRS,ZI 1 UNT 2,711.00 2,711.00
HOUR IN RANGE OF 6 HOURS 6
148 ZI-50 BBL BLENDER (4 HR) 1 EA 0.00 1,575.00
HOURS OR FRACTION (MIN4) 4
11941 FIELD STORAGE BIN DELIVERY 100 MI 3.88 776.00
Number of Units 2
16115 FIELD STORAGE BIN ON SITE >8 HRS,DAY,ZI 2 EA 320.00 640.00
DAYS OR PARTIAL DAY(WHOLE NO.) 1
141 RCM II W/ADC,/JOB,ZI 1 EA 970.00 970.00
NUMBER OF UNITS 1
114 R/A DENSOMETER W/CHART RECORDER,/JOB,ZI 1 EA 625.00 625.00
NUMBER OF UNITS 1
90 QUICK LATCH ATTACHMENT 1 EA 300.00 300.00
SIZE IN INCHES/MILLIMETER 9.625
INCHES/MILLIMETRES (IN/MM) IN
74038 PLUG CONTAINER RENTAL-1ST DAY 1 EA 0.00 643.00
DAYS OR FRACTION (MIN1) 1
105233 ZI SUCTION HOSE, 3""/FT,W/HES,PER JOB 100 FT 2.08 208.00
NUMBER OF JOBS 1
7 ENVIRONMENTAL SURCHARGE,/JOB,ZI 2 EA 66.24 132.48
11881 OVERWEIGHT PERMIT FEE - CEMENTING 3 EA 20.00 60.00

7
UNOCAL Rauch Well #1
Cost Estimate 7 5/8" Drilling Liner

SAP Quote #0
Mtrl Nbr Description Qty U/M Unit Price Gross Amt

**** Cementing Materials ****

13251 SBM DUAL SPACER 35 BBL 112.17 3,925.95

100003681 BARITE 98 SK 15.15 1,484.70
101001921 DUAL SPACER MIXING AID EXP 4 GAL 122.00 488.00
100001626 SEM-7 35 GAL 61.71 2,159.85
100003696 MUSOL(R) A 7 GAL 35.84 250.88
100003665 DUAL SPACER SURFACTANT B 11 GAL 46.69 513.59
12302 SBM 75-25 POZ (PREMIUM) 720 SK 17.61 12,679.20
100003682 BENTONITE 12 SK 0.00 N/C
100003646 HALAD(R)-322 180 LB 9.05 1,629.00
100005050 HR-5 235 LB 5.23 1,229.05
100003687 PREMIUM CEMENT 605 SK 19.43 11,755.15
100003653 CFR-3 W/O DEFOAMER 143 LB 7.04 1,006.72
100003623 WG-17 57 LB 23.06 1,314.42
3965 HANDLE&DUMP SVC CHRG, CMT&ADDITIVES,ZI 1484 CF 2.47 3,665.48
NUMBER OF EACH 1
76400 ZI MILEAGE,CMT MTLS DEL/RET MIN 50 MI 1.51 4,899.20
NUMBER OF TONS 64.89

Total USD 63,807.66

Discount USD 22,970.75
Discounted Total USD 40,836.92

Primary Plant: VICTORIA, TX, USA

Secondary Plant: Fresno, TX, USA

8
UNOCAL Rauch Well #1
Job Information 5 1/2" Production Casing

Rauch Well #1

Well Intervals:

9 5/8" Intermediate Casing 0 - 8170 ft (MD)

0 - 8145 ft (TVD)
Outer Diameter 9.625 in
Inner Diameter 8.535 in
Linear Weight 53.50 lbm/ft
Casing Grade P-110

7 5/8" Drilling Liner 7650 - 10370 ft (MD)

Outer Diameter 7.625 in
Inner Diameter 6.625 in
Linear Weight 39 lbm/ft

6 1/2" Open Hole 10370 - 14052 ft (MD)

10314 - 14000 ft (TVD)
Inner Diameter 6.500 in
Job Excess 15 %

5 1/2" Production Casing 0 - 14052 ft (MD)

0 - 14000 ft (TVD)
Outer Diameter 5.500 in
Inner Diameter 4.778 in
Linear Weight 20 lbm/ft
Casing Grade P-110

Calculated Top of Cement 10000 Ft.

Calculated Cement Fill 4052 Ft.
Mud Weight 16.5 ppg
Mud Type Oil Base Mud
Estimated BHST 290°F
Shoe Joint (est) 80 Ft.

9
UNOCAL Rauch Well #1
Calculations 5 1/2" Production Casing

Spacer:
456.00 ft * 0.2323 ft3/ft * 0 % = 105.94 ft3
520.00 ft * 0.0744 ft3/ft * 0 % = 38.69 ft3
1830.00 ft * 0.0744 ft3/ft * 0 % = 136.15 ft3
Total Spacer = 280.73 ft3
= 50.00 bbl

Cement : (4052.00 ft fill)

370.00 ft * 0.0744 ft3/ft * 0 % = 27.53 ft3
3682.00 ft * 0.0654 ft3/ft * 15 % = 277.13 ft3
Tail Cement = 304.66 ft3
= 54.26 bbl

Shoe Joint Volume: (80.00 ft fill)

80.00 ft * 0.1245 ft3/ft = 9.96 ft3
= 1.77 bbl
Tail plus shoe joint = 314.62 ft3
= 56.04 bbl
Total Tail = 220 sks

Total Pipe Capacity:

14052.00 ft * 0.1245 ft3/ft = 1749.68 ft3
= 311.63 bbl

Displacement Volume to Shoe Joint:

Capacity of Pipe - Shoe Joint = 311.63 bbl - 1.77 bbl
= 309.86 bbl

10
UNOCAL Rauch Well #1
Job Recommendation 5 1/2" Production Casing

Fluid Instructions
Fluid 1: Water Based Spacer
Mod. Dual Spacer @ 17.0 ppg Fluid Density: 17 lbm/gal
455.4 lbm/bbl Barite (Heavy Weight Additive) Fluid Volume: 50 bbl
0.1 gal/bbl Dual Spacer Mixing Aid EXP (Viscosifier)
1 gal/bbl SEM-7 (Surfactant)
0.2 gal/bbl Musol(R) A (Mutual Solvent)
0.3 gal/bbl Dual Spacer Surfactant B (Surfactant)

Fluid 2: Tail Cement

Premium Cement Fluid Weight 17.50 lbm/gal
94 lbm/sk Premium Cement (Cement-api) Slurry Yield: 1.43 ft3/sk
35 % 100 Mesh Sand (Heavy Weight Additive) Total Mixing Fluid: 5.06 Gal/sk
16 lbm/sk Hi-Dense No. 4 (Heavy Weight Additive) Top of Fluid: 10000 ft
0.4 % Halad(R)-344 (Low Fluid Loss Control) Calculated Fill: 4052 ft
0.4 % Halad(R)-413 (Low Fluid Loss Control) Volume: 56.04 bbl
0.4 % Super CBL (Gas Migration Control) Calculated Sacks: 220.32 sks
0.4 % CFR-3 (Dispersant) Proposed Sacks: 225 sks
0.25 % D-AIR 3000 (Defoamer)
0.1 % SCR-100 (Retarder)
0.05 % HR-25 (Retarder)
5.057 Gal/sk Fresh Water (Mixing Fluid)

Fluid 3: Mud
Oil Base Mud Fluid Density: 16.50 lbm/gal
Fluid Volume 309.86 bbl

11
UNOCAL Rauch Well #1
Job Procedure 5 1/2" Production Casing

Detailed Pumping Schedule

Fluid # Fluid Fluid Name Surface Estimated Downhole
Type Density Avg Rate Volume
lbm/gal bbl/min
1 Spacer Mod. Dual Spacer @ 17.0 17.0 50 bbl
ppg
2 Cement Premium Cement 17.5 225 sks
3 Mud Oil Base Mud 16.5 309.86 bbl

NOTE: This slurry and spacer will require lab testing. The additives and concentrations are estimates based on field
experience in the area and may need to be modified prior to the job. The proposed spacer is designed to be generally
compatible with synthetic base mud systems. Compatibility testing with field mud samples may indicate changes in
the additive package and the related costs.

12
UNOCAL Rauch Well #1
Cost Estimate 5 1/2" Production Casing

SAP Quote #0
Mtrl Nbr Description Qty U/M Unit Price Gross Amt
7523 PSL - CMT PRODUCTION CASING - BOM 1 JOB 0.00 0.00

**** Cementing Equipment & Services ****

1 "ZI-MILEAGE FROM NEAREST HES BASE,/UNIT" 100 MI 4.05 810.00

Number of Units 2
2 MILEAGE FOR CEMENTING CREW,ZI 100 MI 2.38 238.00
Number of Units 1
16091 ZI - PUMPING CHARGE 1 EA 13,826.00 13,826.00
DEPTH 14052
FEET/METRES (FT/M) FT
148 ZI-50 BBL BLENDER (4 HR) 1 EA 0.00 1,575.00
HOURS OR FRACTION (MIN4) 4
11941 FIELD STORAGE BIN DELIVERY 100 MI 3.88 388.00
Number of Units 1
16115 FIELD STORAGE BIN ON SITE >8 HRS,DAY,ZI 1 EA 320.00 320.00
DAYS OR PARTIAL DAY(WHOLE NO.) 1
141 RCM II W/ADC,/JOB,ZI 1 EA 970.00 970.00
NUMBER OF UNITS 1
114 R/A DENSOMETER W/CHART RECORDER,/JOB,ZI 1 EA 625.00 625.00
NUMBER OF UNITS 1
90 QUICK LATCH ATTACHMENT 1 EA 239.00 239.00
SIZE IN INCHES/MILLIMETER 5.5
INCHES/MILLIMETRES (IN/MM) IN
74038 PLUG CONTAINER RENTAL-1ST DAY 1 EA 0.00 643.00
DAYS OR FRACTION (MIN1) 1
105233 ZI SUCTION HOSE, 3""/FT,W/HES,PER JOB 100 FT 2.08 208.00
NUMBER OF JOBS 1
7 ENVIRONMENTAL SURCHARGE,/JOB,ZI 1 EA 66.24 66.24
11881 OVERWEIGHT PERMIT FEE - CEMENTING 3 EA 20.00 60.00

13
UNOCAL Rauch Well #1
Cost Estimate 5 1/2" Production Casing

SAP Quote #0
Mtrl Nbr Description Qty U/M Unit Price Gross Amt

**** Cementing Materials ****

13251 SBM DUAL SPACER 50 BBL 112.17 5,608.50

100003681 BARITE 228 SK 15.15 3,454.20
101001921 DUAL SPACER MIXING AID EXP 5 GAL 122.00 610.00
100003665 DUAL SPACER SURFACTANT B 15 GAL 46.69 700.35
100001626 SEM-7 50 GAL 61.71 3,085.50
100003696 MUSOL(R) A 10 GAL 35.84 358.40
100003687 PREMIUM CEMENT 225 SK 19.43 4,371.75
100003676 100 MESH SAND 75 SK 27.43 2,057.25
100003769 HI-DENSE NO. 4 36 SK 27.89 1,004.04
100003670 HALAD(R)-344 85 LB 38.10 3,238.50
100003738 HALAD(R)-413 85 LB 41.61 3,536.85
100003668 SUPER CBL 85 LB 30.54 2,595.90
100003653 CFR-3 W/O DEFOAMER 85 LB 7.04 598.40
101007446 D-AIR 3000 53 LB 4.91 260.23
100003749 SCR-100 22 LB 34.46 758.12
100003756 HR-25 11 LB 22.36 245.96
3965 HANDLE&DUMP SVC CHRG, CMT&ADDITIVES,ZI 554 CF 2.47 1,368.38
NUMBER OF EACH 1
76400 ZI MILEAGE,CMT MTLS DEL/RET MIN 50 MI 1.51 2,144.96
NUMBER OF TONS 28.41

Total USD 55,965.52

Discount USD 20,147.58
Discounted Total USD 35,817.94

Primary Plant: VICTORIA, TX, USA

Secondary Plant: Fresno, TX, USA

14
UNOCAL Rauch Well #1
Conditions

NOTE

The cost in this analysis is good for the materials and/or services outlined within. These prices are based
on Halliburton being awarded the work on a first call basis. Prices will be reviewed for adjustments if
awarded on 2nd or 3rd call basis and/or after 30 days of this written analysis. This is in an effort to
schedule our work and maintain a high quality of performance for our customers.

The unit prices stated in the proposal are based on our current published prices. The projected equipment,
personnel, and material needs are only estimates based on information about the work presently available
to us. At the time the work is actually performed, conditions then existing may require an increase or
decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in
effect at the time the work is performed and the amount of equipment, personnel, and/or material actually
utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual
invoice.

It is understood and agreed between the parties that with the exception of the subject discounts, all
services performed and equipment and materials sold are provided subject to Halliburton’s General Terms
and Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and
WARRANTY provisions), and pursuant to the applicable Halliburton Work Order Contract (whether or
not executed by you), unless a Master Service and/or Sales Contract applicable to the services,
equipment, or materials supplied exists between your company and Halliburton, in which case the
negotiated Master Contract shall govern the relationship between the parties. A copy of the latest version
of our General Terms and Conditions is available from your Halliburton representative or at:
http://www.halliburton.com/hes/general_terms_conditions.pdf for your convenient review, and we would
appreciate receiving any questions you may have about them. Should your company be interested in
negotiating a Master Contract with Halliburton, our Law Department would be pleased to work with you
to finalize a mutually agreeable contract. In this connection, it is also understood and agreed that
Customer will continue to execute Halliburton usual field work orders and/or tickets customarily required
by Halliburton in connection with the furnishing of said services, equipment, and materials.
Any terms and conditions contained in purchase orders or other documents issued by the customer shall
be of no effect except to confirm the type and quantity of services, equipment, and materials to be
supplied to the customer.
If customer does not have an approved open account with Halliburton or a mutually executed written
contract with Halliburton, which dictates payment terms different than those set forth in this clause, all
sums due are payable in cash at the time of performance of services or delivery of equipment, products, or
materials. If customer has an approved open account, invoices are payable on the twentieth day after date
of invoice.

Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest
lawful contract rate applicable, but never to exceed 18% per annum. In the event Halliburton employs an
attorney for collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account,
plus all collection and court costs.

15
UNOCAL Rauch Well #1