6:10 p.m. DNR Field Update

Office of Conservation
Bayou Corne Field Update
Jan. 29, 2013 Activities

Texas Brine Operations

Oxy 3-A Cavern Well –
Shut in, monitoring pressure – Casing Pressure: 480 psi

Texas Brine Facility Vent Well to Top of Aquifer (RW 1 on Oxy 2 well pad) –
Shut in, to be re-worked – 2,594 mcf removed to date.

Texas Brine Facility Geophone Well (Between Oxy 2 & original Oxy 3 well pads) –
Ongoing monitoring for seismic activity, data available at http://folkworm.ceri.memphis.edu/heli_temp/

ORW 13 Vent Well (Near Oxy 9 well pad)–
PDK logging run, completing well in preparation for flaring

ORW 14 Vent Well (Near Oxy 10 well pad)–
PDK logging run, completing well in preparation for flaring

ORW 15 Vent Well (North of Hwy 70)–
Drilling operations begun

Texas Brine Facility Shallow Pressure Monitoring (TBC 1-3)

TBC 1 (Original Oxy 3 well pad)
Tubing Pressure: 38 psig
Casing Pressure: 20 psig

TBC 2 (Original Oxy 3 well pad)
Tubing Pressure: 56 psig
Casing Pressure: 14 psig

TBC 3 (Oxy 1 well pad)
Tubing Pressure: 0 psig
Casing Pressure: 0 psig

Sinkhole Site –
Monitoring status of sinkhole area

Conservation/Shaw Operations

ORW 1 Vent Well (North of Hwy 70)–
Flaring gas at 2.65 mcf/day – 875 mcf removed to date

ORW 2 Vent Well (North of Hwy 70)
Flaring gas at 6.61 mcf/day – 1,505 mcf removed to date

ORW 3 Vent Well (West of Bayou Corne) –
Remains in monitoring status, set up to vent/flare natural gas if concentrations are observed around wellbore

ORW 4 Vent Well (South of Hwy 70) –
Flaring gas at 2.69 mcf/day – 188 mcf removed to date

Bayou Corne Community

Bayou Corne Community Aquifer Monitoring Wells (BC 1-2)

BC 1
Texas Brine reports awaiting landowner access to reach proposed site along Florida Gas Pipeline right of way

BC 2
Casing Pressure: 8 psig

Other Actions in Near-Term on Office of Conservation Directives

In status updates to Office of Conservation, Texas Brine reports:

Work ongoing to improve rig road west of sinkhole to allow for installation of vent well (ORW 5) and geophone well (G 03) and provide sinkhole containment

Continuing site construction for G 03, rig scheduled to begin moving in Jan. 30

Continued making geotechnical borings on Texas Brine facility in preparation for installation of permanent sinkhole containment system

Southern alignment of planned containment system 90 percent cleared, 3,000 yards of sand placed to allow access

23 indoor air monitors (LEL and H2S monitors) installed in Bayou Corne community structures to date; 17 more to be scheduled pending manufacturer delivery pending manufacturer delivery

Field surveying for 3-D seismic ongoing, estimated to continue through next week

Aquifer monitoring well (MRAA 01, on Oxy 1 well pad) installation continues