7:20 a.m. 12/6 DNR Field Update

Office of Conservation
Bayou Corne Field Update
Dec. 6, 2012 Activities

Texas Brine Operations

Oxy 3-A Cavern Well –
Logging cavern floor depth, Injecting brine/removing oil and flaring natural gas. During flaring operations, crew on site noted that characteristics of flare indicated potential presence of hydrogen sulfide, verified through sampling of separator equipment. Monitoring in area indicated hydrogen sulfide did not escape containment. Well shut in pending evaluation of hydrogen sulfide presence and assessment by Office of Conservation.

Texas Brine Facility Vent Well to Top of Aquifer –
Flaring gas at 36.6 mcf/day

Texas Brine Facility Vent Well to Top of Cap Rock –
Shut in pending plug and abandon evaluation

Texas Brine Facility Geophone Well –
Drilled to 480 feet, well being logged and prepared for placement of geophones

Texas Brine Facility Shallow Pressure Monitoring –
Initiating installation of three shallow wells to monitor pressure and quality of water in aquifer

Sinkhole Site –
Skimming hydrocarbons removing vegetation from sinkhole surface

Conservation/Shaw Operations

Observation/Vent Well #1 –
Flaring gas at 15.8 mcf/day

Observation/Vent Well #2 –
Flaring gas at 24.7 mcf/day

Observation/Vent Well #3 –
Remains in monitoring status, set up to vent/flare natural gas if concentrations are observed around wellbore

Observation/Vent Well #4 –
Shut in due to impeded flow of natural gas from the sanding in of perforations, currently evaluating procedures for restoring flow

Bayou Corne Community
Participating in ongoing in-home monitoring effort with DEQ
Oversight of completion of Office of Conservation-directed Texas Brine geoprobe monitoring wells and benchmarks in Bayou Corne community – six monitoring wells have been installed and in process of being set up for monitoring of potential natural gas pressure