1. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co. Wyoming
API:
Spud Date: 09/12/14
Drilling Completed: 10/02/14
Location: Sec. 28 T38N R78W 1457’ FSL & 1964’ FWL
Surface Coordinates: Lat º, Long º
Bottom Hole Location: 85.44’ N & ’ W of surface location or approximately 1542’ FSL & 143’ FEL SE/NE
Ground Elevation: 5541’
Kelly Bushing Elevation: 5556’
Logged Interval: ~700’-7457’ TVD (Niobrara “C”)
True Drilling Rig #26

2. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co. Wyoming
Highly fractured and faulted syncline to the south west of the Teapot Dome Anticline. Seismic analysis revealed numerous zones of possible hydrocarbon traps targeted in the lateral drilling operations.
Surface Location/Lateral
Surface Location/Lateral
Fracture Zones Of Interest

3. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Natrona Co. Wyoming
Vertical/Pilot & Tangent Operations: The Bothwell 1-28H Was planned to have a back azimuth deviated pilot hole (10˚ per 100’ deviated to the East of surface) drilled prior to the lateral operations.
The back azimuth portion was planned to keep the designated lateral at ~1500’ Vertical Section, within Sec. 28. Later in the drilling operation it was brought to the attention of Seidel Geologic TM to hold lease obligations the proposed bottom hole location be located in section 29.
Surface Location
Start of Tangent/Back Azimuth
End of Tangent/Back Azimuth
TD of Vertical/Pilot
As Planned

4. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Pilot & Tangent Operations
The Bothwell 1-28H Pilot was planned to TD 100’ into the Niobrara Formation, 7” casing was set to a total depth of ’ TVD.
Due to faulting in the Pilot Hole the depth of Niobrara Formation was adjusted based off samples, as well as real time gamma ray readings. This faulting deepened the prognosis depth of the Niobrara by ~400’ TVD.
Surface Location
Start of Tangent/Back Azimuth
End of Tangent/Back Azimuth
TD of Vertical/Pilot

5. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Pilot Operations Cont.
Surface Location
Sample 4875’ MD
Re-entry of the Pilot hole was conducted on 09/22/14 in order to drill +100’ into the Carlisle formation to obtain electronic logs through the Niobrara.
Upon re-entry, a mechanical failure (collapse) of the 7” casing was encountered at ~4726’ TVD. The sample cuttings being returned to the surface were of soft, uncured cement, and stainless steel shavings originating from the casing.
Pressure testing of the casing was conducted and the casing passed the integrity at 1500 psi.
Subsequently the decision was made to attempt to mill through the casing to complete the pilot hole and run electronic logs. This attempt to mill failed on 09/22/14.
Start of Tangent/Back Azimuth
Sample 4875’ MD
Casing Cuttings
Uncured Cement
TD of Vertical/Pilot

6. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Curve Operations
Surface Location
On 9/23/2014 a whipstock was set at 4241’ TVD, a window was milled in the 7” casing to kick off for the curve portion of the well.
Milling was completed on 09/25/14 and the window was drilled ~6’ into the formation. Late on 09/25/14 and into 09/26/14 the curve was time and control drilled from 4260’-4356’ MD with a Hughes Tri-Cone bit in order to gain sufficient distance from the Pilot hole.
After Tripping out of the hole on 09/26/14 to change to the curve BHA the curve was kicked off on 09/27/14 at 4356’ MD/~3320’ TVD. The curve was landed at a total depth of 6028’ MD/5317’ TVD and an inclination of 88.07º, on 09/30/14.
Start of Tangent/Back Azimuth
Milling/Control Drilling Casing
TD of Pilot Hole 4875’ TVD
TD of Pilot Hole 4875’ TVD
TD of Vertical/Pilot

7. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Curve Operations Cont.
Surface Location
During drilling of the curve portion of the Bothwell 1-28H numerous small TVD changes or possible faulting/fracturing was encountered starting at ~4861’MD/4782’TVD. This faulting deepened the landing depth of the curve to ~5315’ TVD, causing the directional team to “rotate” tangents into the curve in order to bring the well bore to the specified depth.
Start of Tangent/Back Azimuth
4985’ MD Survey
5206’ MD Survey
Wellbore
Faulted intervals seen in curve
Wellbore
Faulted intervals seen in curve
Target Top
Target Top
5554’ MD Survey
5839’ MD Survey
Faulted intervals seen in curve
Faulted intervals seen in curve
Wellbore
Wellbore
TD of Vertical/Pilot
Target Top
Target Top

8. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations
Surface Location
The lateral was started directly after landing the curve on 09/30/14.
The well was prognosed and planned to have ~89º down dip to the well bore in order to follow the target formation of the Niobrara “C”.
Start of Tangent/Back Azimuth
Survey Nodes
Wellbore
Niobrara “C”
Target Top
TD of Vertical/Pilot

9. Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations Cont.
Surface Location
7262’ MD Survey
The lateral was started directly after landing the curve on 09/30/14.
During the drilling of the lateral numerous structural changes were seen in the targeted formation. The target interval rolled from a ~89˚ down dip to ~92˚ up dip then faulted down as it was determined we had drilled into the foot wall or dropped block of a fault. During the final portion of the lateral the Bothwell 1-28H took significant volume of drilling fluid losses (+2000BBLS) to the formation due to a fractured interval that was encountered. This fracture interval at the end of the lateral also mechanically stuck the pipe most likely due to a collapse that packed of the BHA and made it irretrievable.
Up-dip Feature
Start of Tangent/Back Azimuth
Lost Circulation Zone
TD of Vertical/Pilot

10. Shale/Gas Increases
Tight Sand/Less Gas
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations Cont.
Surface Location
7262’ MD Survey
Tight Sands seen in the center part of the target interval had little to no porosity. These sands were extremely well cemented, often contained higher amounts of Bentonite and were associated with lower gas and slightly slower rates of penetration. Trace amounts of oil staining were visible but bound within the matrix of the rock they would not be able to be produced without fracking.
Start of Tangent/Back Azimuth
Slower Drilling
Bentonite Zone
Bentonite Zone
TD of Vertical/Pilot
No Porosity/No Gas

11. Shale/Gas Increases
Tight Sand/Less Gas
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations Cont.
Surface Location
7262’ MD Survey
Calcareous Shale in the upper part of the target zone were more porous and prone to having better gas shows than the sand directly below. The shale interval drilled faster on average and displayed roughly double the amount of liberated gas while drilling. The end of the lateral however showed the shale to be a more unstable drilling medium and prone to collapse when extreme structural anomalies are encountered. This caused a massive loss of drilling fluids BBLS and a stuck BHA, which was non-retrievable.
Start of Tangent/Back Azimuth
Lost Circulation/Stuck BHA
Porosity/More Gas
TD of Vertical/Pilot

12. The lateral was started directly after landing the curve on 09/30/14.
During the drilling of the lateral numerous structural changes were seen in the targeted formation. The target interval rolled from a ~89º down dip to almost a 92º up dip very quickly then faulted down as if we had drilled into the down drop block of a fault. The last portion of the lateral the Bothwell 1-28H took significant amount of losses (+2000BBLS) to the formation due to a fractured interval that was encountered. This fracture interval at the end of the lateral also mechanically stuck the pipe most likely due to a collapse that packed of the BHA and made it unretrievable.
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations Cont.
Surface Location
7262’ MD Survey
Shale/Gas Increases
Tight Sand/Less Gas
Start of Tangent/Back Azimuth
Shale/Gas Increases
Lost Circulation Zone
TD of Vertical/Pilot

13. Shale/Gas Increases
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Lateral Operations Cont.
Surface Location
7262’ MD Survey
The lateral finished drilling on 10/02/14, with the entry into the fracture zone seen at~1800’ vertical section. The BHA drilled 300’ of vertical section into this fracture zone before sustaining a massive fluid loss and eventually becoming stuck. Once stuck due to insurance purposes on the MWD/Directional tools the decision was made to “Jar”, mechanically free, the lost tools.
The jarring was done from 10/03-10/06/14 and was unsuccessful. The decision was made at ~0700 MST on 10/06/14 to plug and abandon the Bothwell 1-28H.
Projection to bit: 7457’MD, 86.66º INC, º AZI, ’TVD, ’VS
Lost Circulation Zone
Tight Sand/Less Gas
Bottom hole location: 85.44’ N & ’ W of Surface / 1542’ FSL & 143’ FEL SE/NE Sec. 29 T38N R78W
Shale/Gas Increases
Kick Off Point
Kick Off Point
Fractured Zone/TD
Total Depth 7457’ MD
Total Depth 7457’ MD

14. Hydrocarbon Shows Niobrara A 4853’-5056’ TVD
Summary
None to good fluorescence
Instant-slow blooming, diffusing to streaming cuts beginning at 5080’ MD 92’ into the Niobrara A
Trace light brown oil staining observed beginning at 5080’ MD
Fluorescence varied from bright white- blue-dull yellow gold
Gas shows muted due to drilling on air to prevent lost circulation ~peak connection gas 73 total gas units
Mud weight consistent at 9.0 lbs/gal
No visible free oil observed in reserve pit, shakers or in samples
Trace intergranular porosity observed

15. Hydrocarbon Shows Niobrara B 5056’-5195’ TVD
Summary
Fair to good fluorescence
Instant-slow blooming, diffusing to streaming cuts
Trace to common light brown spotty oil staining observed throughout Niobrara B member
Fluorescence varied from common bright white-blue to trace dull yellow gold
Gas shows associated with connection gases. Peak connection gas 69 total gas units
Mud weight ranged from 9.0 to 9.1 lbs/gal
No visible free oil observed in reserve pit, shakers or in samples
Trace intergranular porosity observed

16. Hydrocarbon Shows Niobrara C 5195-5355’ TVD
Summary
Shows increased in Niobrara C member
Poor to good fluorescence
Instant-slow blooming, diffusing to streaming cuts
Trace to common light brown spotty oil staining observed through Niobrara C above middle of lateral target zone
Fluorescence varied from common bright white-blue to trace dull yellow gold
Gas shows associated with connection gas and possible fracture porosity. Peak gas 91 total gas units at 5483’ MD
Mud weight ranged from 9.0 to 9.6 lbs/gal
Trace visible free oil observed in reserve pit and shakers
Trace intergranular porosity observed w/trace fracture porosity

17. Hydrocarbon Shows Niobrara C Lateral 5933-7457’ MD
Summary
Shows dependent on lithology
Poor to good fluorescence
Instant-slow blooming, diffusing to streaming cuts
Trace to common light brown spotty oil staining observed through Niobrara C above middle of lateral target zone
No shows in siltstone facies of target zone
Fluorescence varied from common bright white-blue to trace dull yellow gold
Gas shows associated with connection gas and possible fracture porosity. Peak trip gas 194 total gas units at 7370’ MD
Mud weight ranged from 9.0 to 9.6 lbs/gal
Trace visible free oil observed in reserve pit and shakers
Trace intergranular porosity observed w/trace fracture porosity
357 total gas units observed upon circulating 27 hrs post TD

18. Hydrocarbon Potential Summary
Most productive zones are Niobrara B & C members
Further data gathering and evaluation required to determine hydrocarbon potential
Fracture zones severely under-pressured.
Fracture zones highly unstable when drilling laterally.
No observable fluid recovered from fracture intervals due to lost circulation
Gas shows muted due to higher mud weights and drilling on air
Oil shows indicated moderate volumes of matrix bound fluid
Overall Niobrara B & C displayed consistent fair to good cut fluorescence

19. Shale/Gas Increases
Universal Oil & Gas, LLC Bothwell Syncline Federal 1-28H Recommendations
Surface Location
7262’ MD Survey
Vertical Drilling
Lateral Drilling
Start of Tangent/Back Azimuth
Drill vertically into one of the fractured intervals seen on seismic. Then continue on to the Dakota or Morrison Formations below to asses their potential.
Electronically log the intervals of interest and make adjustments accordingly to target the most viable interest.
Drill on air to minimize the amount of hydrocarbon migration due to drilling fluid over pressure.
Core the intervals of interest for potential total organic carbon readings.
Complete the well with perforated casing and determine recoverable hydrocarbons.
Target the best zone observed while evaluating the vertical well drilled into zones of interest.
Switch to a unconventional approach and target tight oil shale that will need to be hydraulically fracked to complete.
Drill parallel within the frack radius to fractured zones due to hole instability and fluid losses.
Using knowledge gained from electric logs and or coring to target the most organically rich zones and maintain wellbore placement within this interval.
Lost Circulation Zone
Tight Sand/Less Gas
Shale/Gas Increases
TD of Vertical/Pilot