UNODOS DRILLING COMPANY

Carmona, Cavite, Philippines

ENGINEERING EXECUTION PLAN

Well Type : Exploration

Well Deviation : Vertical
Rig Name / Type : Ocean Monarch / Moored Semi-Submersible
Surface Location : Latitude: 000° 44’ 01.96” S
Longitude: 118° 20’ 31.09” E
Datum : WGS-84 UTM Zone 50S
Secondary Objective : Upper Miocene Sandstone
Top @ 15,149’ TVD SS (±200’ TVD)
Bottom @ 16,786’ TVD SS (±200’ TVD)
Primary Objective : Middle Miocene Sandstone
Top @ 17,750’ TVD SS (±200’ TVD)
Bottom @ 19,597’ TVD SS (±200’ TVD)

DRILLING PROGRAM
7,550 – 7,900 → 30” hole
7,900 – 9,800 → 26” hole
9,800 – 12,200 → 17.5” hole
12,200 – 14,700 → 12.125” hole
14,700 – 19,695 → 8.5” hole

DRILLING MUD PROGRAM

7,550 – 7,900 → 9.0 ppg
7,900 – 9,800 → 9.2 ppg
9,800 – 12,200 → 10.0 ppg
12,200 – 14,700 → 11.6 ppg
14,700 – 16,800 → 12.7 ppg
16,800 – 19,695 → 13.9 ppg

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

Water-based mud (WBM) is planned for all subsequent hole sections, as follows:
Jet in 30" Conductor Pipe:
 Due to the potential of penetrating gas-charged sands when drilling the ensuing
(26") riserless hole section, a volume of 2098.5 bbls of 9.2 ppg WBM kill mud will
be built in advance of jetting in the 30" conductor for this interval in order to prepare
for drilling the 26" section. The 30" conductor will be jetted in The Hi-Vis mud will
be made with 5-6 PPB PHG and treated drill water. Note: Should time constraints
be a factor in preparing PHG, SW viscosified with 2.5-3.0 PPB Xanthan polymer
can be used as an alternative. Utilize PHG whenever feasible to reduce the
consumption of Duo-Tec & Duo-Vis and the related additional costs and logistics.
 Pump minimum 304 bbls Hi-Vis sweep for each joint of casing jetted (or twice per
joint if required). The casing will be soaked for ±6 hours in the hole (with no cement
job planned) prior to drilling the 26" hole
26” Rislerless Hole Section:
 The 26" hole section will be drilled with sweeps. The open hole will be displaced
150% with treated 10.0 ppg WBM (plus the volume of the 30" conductor) prior to
running 20" casing. An additional (minimum) 1237 bbls 9.2 ppg treated WBM
should be built after the initial displacement using the same product concentrations
of the previous section to inhibit claystone, for re-displacing the hole, tripping, and
filling/circulating 20" casing if necessary. Dilute 16.5 ppg Kill Mud with SW (and
12-15 PPB PHG if feasible ), and treat with 1.75 PPB Drispac R, 2.0 ppb Dou Tec,
0.25 PPB Soda Ash, and 0.2 PPB Caustic Soda for the additional WBM
requirements.
17 ½” Hole Section:
 After running the riser, the 17 1/2" hole will be displaced with 10.0 ppg Synthetic
Based Mud (SBM). While drilling ahead, fluid density will be raised as dictated by
gas shows with the final mud weight at TD planned to be 10.4 ppg. The LOT/FIT
at the 20" casing shoe is predicted to be 11.43 ppg EMW. SBM brought forward
from the previous will be reconditioned for an SWR of 80/20 to provide mud volume
requirements for this and subsequent drilling intervals.
 Hazards expected in this section include potential gas-charged sands, loss of
returns at the 20" casing shoe, and a fault that may be drilled with resultant risks
of both loss of returns and/or exposure to gas migrated upwards through the fault.

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

 A 25-28% by weight CaCl2 in the brine phase is planned for this interval. For an
initial base of bridging agents, 5 PPB CaCO3 M and 2.5 PPB FLC 2000 will be
maintained in the system from the outset of drilling.
 Mud rheology will be minimized (while kept sufficient to clean large claystone
cuttings from the 17 1/2" hole), in the effort to minimize ECD and the potential for
mud loss in the area of the 20" casing shoe. Monitor parameters with Virtual
Hydraulics. The riser should be boosted to achieve sufficient annular velocity in
the riser for this deepwater well.
12 1/8” Hole Section:
 The 12 1/8” section will be drilled with at estimated mud weights of 10.1 – 11.6
ppg.
 Hazards expected in this section include potential gas-charged sands.
 The Synthetic/Water Ratio for this interval is to be maintained at ±85/15. CaCl2
content should be gradually raised from the 25-27% range to 28-29% by weight
CaCl2 in the internal phase by section TD.
 Unless hole conditions dictate otherwise, maintain the same concentration of
bridging agents as before, 5 PPB CaCO3 M and 2.5 PPB FLC 2000, while also
introducing a combined total 2.5 PPB G-Seal Plus and G-Seal HRG Fine to the
system to increase the caging ability of the fluid ahead of reaching section TD.
Consult the Lost Circulation Decision Tree as a guideline for dealing with downhole
losses. The LOT/FIT at the 13 5/8" casing shoe is forecast to be 12.97 ppg EMW,
a threshold possibly approached with mud weight required to control gas and/or
tectonically stressed formations.
 Monitor real time fluid dynamics with Virtual Hydraulics software to aid in achieving
desired ECD and hole cleaning.
8 ½” Hole Section:
 The 8 1/2" section is expected be drilled with 12.7 – 13.9 ppg . Offset data indicates
a higher density may be required (up to 14.0 ppg) to stabilize stressed formations
and to prevent gas intrusion, while mud loss to the carbonate formation is also
expected. Managed Pressure Drilling (MPD) is therefore planned to be utilized for
drilling this interval.

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

 Hazards expected in this section include loss of returns in the fractured carbonate
formation, and risk of significant gas intrusion. These challenging hole conditions
are planned to be controlled by the implementation of MPD equipment.
 Increase the concentrations of bridging agents in the active system for a total 15
PPB CaCO3 M, 2.5 PPB FLC 2000, and a combined total of 5 PPB G-Seal Plus
and G-Seal HRG Fine in advance of drilling out the 9 5/8" liner shoe. A 100-150
bbl, 50 PPB LCM pill should also be prepared using materials that will freely flow
through the directional equipment in the BHA (for immediate application). Insure a
circulating sub is installed in the BHA to allow the employment of coarse LCM.
Consult the Lost Circulation Decision Tree as a guideline for designing pills and
LCM concentrations in the annular column mud to avoid excessive losses: The
location of this well is remote, and the ability to resupply materials should always
be considered.
 Bottom hole temperatures may increase towards 300°F (as seen in one offset well)
in this section of hole, and the SBHT will have more extensive effects on fluid
placed in the annulus during MPD operations. Increase Lime content to counter
temperature degradation and exposure to acidic gas, and raise the rheology of the
fluid as required with VG Supreme to prevent the migration of gas encountered
(consult with the MPD engineer for requirements as per downhole conditions).

CASING PROGRAM
PANANDA-1 is planned as a vertical deep water exploration well with the following well
bore geometry and casing design as summarized in the attached sheets.
7,550 – 7,900 → 30’’ conductor casing
7,900 – 9,800 → 20” surface casing
9,800 – 12,200 → 13.375” intermediate casing
12,200 – 14,700 → 9.625” liner
14,700 – 19,695 → 7” production casing

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

CEMENTING PROGRAM
The cementing program for PANANDA-1 is summarized below with further details
included in the attached sheets.
7,550 – 7,900 → 30” hole
7,900 – 9,800 → 26” hole
9,800 – 12,200 → 17.5” hole
12,200 – 14,700 → 12.125” hole
14,700 – 19,695 → 8.5” hole

DRILL BIT PROGRAM

The drilling rig to be used for the PANANDA-1 deep water exploration well is a moored
semi-submersible. The proposed drill bit Program is as follows:
30” → 3 x 22/32” tri-cone
1 x 18/32”
26” → 9 x 13/32” polycrystalline
1 x 14/32” diamond compact
17.5” → 7 x 12/32” bc bit
4 x 13/32”
12.125” → 5 x 13/32” bc bit
2 x 14/32”
2 x 15/32”
8.5” → 6 x 15/32” polycrystalline
diamond compact

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

CASING SCHEMEMATIC DIAGRAM

7,900' 30" Conductor Casing

9,800' 20" Surface Casing

12,200' 13.625" Intermediate Casing

14,700' 9.625" Liner

19,685' 7" Production Casing

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

OPERATIONS
1 Mobilize Rig to Location 14.21
2 Connect to PLMS, R/U and Offload Equipment/Materials 2.23
3 P/U 30” Conductor with LP Wellhead Housing and 26” BHA 1.02
4 Jet-in 30” Conductor to ±7,900’ RT (±385’ BML) 0.28
5 Soak 30” Conductor and Release CADA Tool 0.34
6 Drill ±1,900’ of 26” Riserless Hole to ±9,800’ RT (±2,285’ BML) 1.97
7 Circulate Hole Clean and POOH with 26” BHA 0.93
8 Run and Cement 20” Surface Casing 2.94
9 Run BOP’s and Riser, Test BOP’s and Install MPD 5.13
10 M/U and RIH with 17 ½” BHA, Test 20” Casing, Drill Out, Perform LOT 1.22
11 Drill ±2,400’ of 17 ½” Hole Section to ±12,200’ RT (±4,685’ BML) 2.24
12 Circulate Hole Clean and POOH with 17 ½” BHA 0.95
13 Pull Wear Bushing Run and Cement 13 3/8” Intermediate Casing 4.17
14 M/U and RIH with 12 1/8” BHA, Test 13 3/8” Casing, DO, LOT 1.32
15 Drill ±2,500’ of 12 1/8” Hole Section to ±14,700’ RT (±7,185’ BML) 3.96
16 Perform Wiper Trip, Circulate Hole Clean and POOH 1.40
17 Run and Cement 9 5/8” Liner 3.73
18 P/U 12 1/8” BHA, RIH, Drill Out Cement 1.52
19 Drill ±4,985’ of 8 ½” Hole Section to ±19,685’ RT (±12,170’ BML) 6.37
20 Perform Wiper Trip, Circulate Hole Clean, POOH 1.78
21 R/U Wireline, Run Wireline Logging Suite no. 3 2.12
22 RIH with Diverter Tool and Spot Abandonment Cement Plugs 2.30
23 RIH with Cement Retainer, Set Same Spot Cement Above 1.54
24 Set Surface Plug 0.45
25 Displace Riser to Seawater 1.00
26 Pull Riser and BOP’s 2.03
27 Disconnect from PLMS 2.65
28 Demobilize Rig from Well Location 0.24

Total Days: 70 days

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 UNODOS DRILLING COMPANY
Carmona, Cavite, Philippines

Well-Specific Potential Drilling Hazards and Mitigation

1. If shallow gas of a large enough quantity is encountered unexpectedly during drilling
operations, a blowout might occur. The driller has interest in shallow gas from mudline
to 3,000 feet and below. Shallow trapped gas areas can be avoided if required, and
only if the frac gradient is sufficient, can be penetrated by cementing a string of casing
firmly above the gas zone, increasing mud weight to penetrate through the gas zone,
and continue the drilling operation. Gas that is trapped in the shallow sediments
usually originates from deeper gas reservoirs but can also come from biogenic activity
in the shallow sediments. Shallow gas can only be confidently interpreted from high
resolution seismic data that has been digitally processed and displayed in true
amplitude.
2. Extremely high bottom hole temperatures can occur in deep wellbores or in areas of
abnormally high geothermal gradient. These excessively high bottom hole
temperatures (greater than 250°C) can cause drilling problems because of the
accelerated thickening of water-based drilling fluids. This problem can be mitigated by
using oil-based mud. Wireline tools onboard should have appropriate temperature
ratings.