Shallow Gas Drilling Practices

TIHS-1 Well UNAR

Shallow Gas Scenarios:......................................................................................................2

TIHS-1 Scenario:................................................................................................................2
Pre-Spud Recommendations:.............................................................................................2
Drilling Practices Recommendation:...................................................................................3
Recovery Plan and Alternatives........................................................................................13

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 1 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR

Shallow Gas Scenarios:

The drilling practices listed below, consists of industry guidelines to consider when drilling into a shallow
gas zone. A shallow gas flow is a critical issue because field experience and mathematical modeling have
shown that it is difficult to control or stop a flow with existing drilling rig equipment once the flow begins.
Although formation bridging is responsible for stopping many shallow blowouts, often shallow gas blowouts
have to be controlled by other methods. Considering the difficulty in controlling shallow gas flows, the
focus and priority should be to use the proper equipment and protocol while drilling the shallow gas
sections.

THIS-1 scenario:

For the specific case of TIHS-1, considering the fact that there is a suspicion of presence of shallow gas,
crew awareness, operational guidelines and training sessions must be ensured. The correct design and
disposition of diverting equipment, and the availability of resources is a key element, considering the
complicated logistics in the area of operations. It is also recommended to drill pilot holes in order to
determine the thickness and pressures found in shallow formations in a safer – easier to control manner.

Pre-Spud THIS-1 Recommendations:

1. Shallow Gas Awareness Training

a. Three (3) training sessions should be conducted where personnel from Repsol (Operator),
Saipem (Drilling Conractor) and other contractors (i.e. Mud Logging, Cementing, etc.) that
would have a key role in controlling, detecting and making decisions in a Shallow Gas event
would have a reminder of their roles and responsibilities, causes, warning signs and
response procedures under such circumstances.

b. Field Training Sessions should also be considered after/during rig up operations, before the
well is spud, where procedures are reviewed as well as familiarization with the diverter
equipment in place; all of this together with a refresher course on warning signs, causes and
response procedures of crews, specially drillers, assistant drillers and supervisors.

2. Perform Drills

a. It is recommended to perform Shallow Gas Kick drills with rig crews as a part of the efforts to
make people at rig site awared of their roles and responsibilities. It is important that people
present in the operation understand the risks of a Shallow Gas Hazard and are familiar with
evacuation procedures.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 2 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
3. Inspection of Diverter Equipment

a. Is it recommended to perform an inspection of the diverter line that will be used for the 24”
hole section to detect any weak points. It is also recommended that a third party inspection
services company performs this inspection under API guidelines.

b. It is recommended to perform an inspection of the diverter line that will be used for the 16”
hole section as well as any unions, elbows or tees that may have to be used, according to
the rig layout and location design. It is also recommended that a third party inspection
services company performs this inspection under API guidelines.

c. It is recommended to check for the 21-1/4” Annular Preventer Manufacturer Certification and
confirm the equipment is compliant.

4. Placement of Centrifugal Pump for Water Re-Circulation

a. It is recommended to install a centrifugal pump that handles 1600 GPM with a minimum 4”
suction line and a 2” discharge line to be capturing water from the Mud Pit and injecting it to
the Diverter Spool – this serves to prologue the life of the Diverter System if used.

b. The suction line must be connected to a floating device in order to capture the least amount
of solids in the Mud Pit.

5. Audit of Mud Logging Equipment/Services Company

a. It is recommended that an audit and inspection is performed to the Mud Logging services
company and ensure early kick detection equipment works as expected.

Recommendations for Drilling 24” Hole Section:

1. The Diverter System to be used in the TIHS-1 well has one 10” ID line. The vent line should be laid
at a distance of 150 meters approximately. (See Fig.1)

2. A pilot hole of 8-1/2” has been planned as a precaution for drilling to the Conductor Casing seat
depth and determining the presence of shallow gas under safer, more controlled conditions. The
Conductor Casing depth has been set at 71 meters. For this pilot hole the following matters have to
be taken into account:

Pre-Spud Recommendations

a. Remove bit jets or have large size jets to allow high volume circulation

b. Install a solid Drillstring Float Valve to avoid bit plugging and flow into drillstring

c. 6.6” Liners must be installed in Pumps to allow high volume circulation during diverting

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 3 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
operations.

d. Ensure Return Flow Meter is installed and properly working

e. Avoid kicking off (angle build up) in the surface hole, as it will complicate cleaning efficiency,
increase pack-iff possibility and Loss of Circulation.

FIG.1

Recommendations for Drilling the Pilot Hole

f. It is recommended to Maintain Constant Bit Weight (drilling program mentions between 2-

5Ton).

g. ROP must be steady and controlled (recommended 10m/hr.)

h. Recognize Drilling Breaks and perform a Flow-Check if drilled 1m into it.

i. It is recommended to Circulate bottoms up for 30 Minutes before making a connection to

minimize drill gas in the annulus

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 4 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
j. Do Not stop circulation until the drillstring is at the connection depth

k. Flow Check Before the connection for at least 5 minutes with slow pipe rotation
(recommended 20 RPM).

l. After the connection start slow pipe rotation before starting circulation to minimize wellbore
pressure.

m. It is recommended to circulate at Drilling Pump rate and slowly reciprocate the drillstring

n. It is recommended to Circulate a minimum of 1-1/2 to 2 times bottoms up strokes, and

continue circulating until the shakers are clear of any cuttings.

Recommendations for POOH in the Pilot Hole

o. It is recommended to have the supervision of the Company Man, Tool Pusher and/or Boots
& Coots Personnel pulling out of the hole in the first 10 stands minimum.

p. Before Pulling Off Bottom we must Flow-Check the well with slow rotation for at least 15
minutes.

q. It is recommended to limit the initial Overpull to ½ the weight of the BHA

r. In order to prevent Swab Pressure and to maintain the hole full of mud we must POOH at +/-
25% drilling pump rate.

s. Once the bit is POOH there must be a Flow-Check conducted

3. According to the Drilling Program, after 8-1/2” the pilot hole is drilled the hole would be drilled to
enlarge to 24” with bit. It is important to mention that due to the size of the Diverter System (21-
1/4”), the Open Hole operations would be done without a Diverter System if we use a 14” bit; for this
purpose special precautions would have to be taken, specially while tripping, as Swabbing is
considered to be the highest risk if gas presence was discovered in a section of the 8-1/2” pilot hole.

Planning and Preparations to Open 24” Hole

a. Remove bit jets or have large size jets to allow high volume circulation

b. Install a solid Drillstring Float Valve to avoid bit plugging and flow into drillstring

c. 6.6” Liners must be installed in Pumps to allow high volume circulation during diverting
operations.

d. Ensure Return Flow Meter is installed and properly working

Recommendations for Opening 24” Hole

e. It is important to maintain a Constant Bit Weight, according to the drilling program it is

suggested to be between 2-5Ton, recommendations is not to exceed 3 Ton and just allow to

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 5 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
vary with the different formations previously identified.

f. It is very important to have a very slow Rate of Penetration (ROP) – If there was indeed a
Shallow Gas Zone detected in the Pilot Hole then the ROP must be slow, recommended to
be 2 m/hr. This is done in order to minimize the gas content in returning mud. This ROP has
to be maintained until the bottom of the Gaz Zone is reached. Once the bottom of the zone is
reached, it is recommended to Circulate Bottoms-Up before drilling ahead.

g. It is recommended to Circulate Bottoms-Up with a Hi-Vis sweep before making connections

in order to minimize cutting and drill gas in the Annulus.

Planning for Tripping Out of the Hole while Opening 24” Hole

h. It is highly recommended that the Company Man, Tool Pusher and Boots & Coots
representative are present on the drill floor for at least the first 10 stands off bottom until no
overpull (minimum) is observed. It is important to understand that most of the Shallow Gas
blow outs have occurred due to swabbing the well. This becomes more important if Gas
Zones were detected in the Pilot Hole.

i. If a Gas Zone was detected in the pilot hole, it is recommended to pump out of the hole 1 to
2 stands into the last casing shoe.

j. It is recommended to POOH on the elevators at no more than 2 min/stand, flow checks must
be performed prior to start POOH.

k. The Circulating Trip Tank (CTT) with a trip Tally Sheet must be sued to determine if the hole
is Swabbing.

l. It is recommended that the Company Man, Tool Pucher and Boots & Coots representative
are present on the drill floor while pulling the BHA and Bit to surface. The well must be Flow-
Checked for at least 5 minutes. The Trip Tank must be monitored while out of the hole.

Recommendations for Drilling 16” Hole Section:

1. The Diverter System to be used in the TIHS-1 well has one 10” ID line. The vent line should be
laid at a distance of 150 meters approximately. It has to be taken into consideration that there
may be the option of having to slightly turn the Diverter Spool some degrees in order to direct
the Diverter Line to the Mud Pit because of the rig substructure design. In case this maneuver is
not possible there may be the need to use an elbow with a <45 degree angle. In case this has to
be done it is recommended to share design with Boots & Coots personnel and have the
couplings/unions inspected and approved. See Diverter arrangement in Figure 2.

2. A pilot hole of 8-1/2” has also been planned as a precaution for drilling to the Surface Casing
seat depth and determining the presence of shallow gas under safer, more controlled conditions.

3. This hole section has been planned to be done with a Stack that has the option of Shutting the
Well In – (See Figure 2.) – as it has a set of 20-3/4 3M Double Rams on top of the diverter
system. It is important to determine IF/WHEN the well is recommended to be Shut-in, preferably
after the pilot hole has been drilled and there has been some hard data recovered about the
hole section’s formations, gas content, fracture gradients, etc. – this has to be defined as a

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 6 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
guideline before we initiate operations.

RIG
RIG FLOOR
FLOOR LEVEL
LEVEL (RKB)
(RKB)
LEGEND:
LEGEND:
1
1 C
C HH
HH 20
20 3/
3/ 4"-
4"- 3K
3K x
x118
8 5/8"
5/8" C
C SG
SG
2
2 SP
SP A
ACC ER
ER SP
SP OOL
OOL 20
20 3/4"-3K
3/4"-3K xx 20
20 3/4"
3/4" 3K--
3K-- A AZ
Z 854339
854339
3
3 DIVER TER
DIVER TER SPSP OOL
OOL FLA
FLA NGED
NGED 20 20 3/4"-
3/4"- 3K
3K W/
W/ 2
2 OUTLETS 10"
OUTLETS 10" +
+11 OUTLET
OUTLET 2
211// 1
16"-1
6"-10K
0K
4 DR ILLING SP OOL W/ 2 OUTLETS-- A
4 DR ILLING SP OOL W/ 2 OUTLETS-- A Z 853663Z 853663
5 DB
5 DB L
LRRAAMM BB OP
OP 20
20 3/4"-3K
3/4"-3K CCAAMM ER
ER ON
ON A AZZ 62491
624915
5
6 A NN.
6 A NN. BB OP
OP 21
21 1
1/4"-2K
/4"-2K C
CAAM
M ER
ER ON
ON A
AZZ 62491
624914
4
7
7 B
BAA LL
LL VA
VA LVE
LVE 1
10"
0" HYDR
HYDR AA ULIC
ULIC OP
OP ER
ER A
A TED
TED

"NOT
"NOT AT
AT SCALE"
SCALE"
+/-
+/- 622
622 CM
CM
BELL
BELL
NIPPLE
NIPPLE

+/-175
+/-175 CM
CM

1090
1090 CM
CM
RKB-
RKB- GL
GL

6
6
CAMERON
CAMERON
21 1/4"- 2000
21 1/4"- 2000 PSI
PSI
140
140 CM
CM

20
20 3/4"-
3/4"- 3K
3K 540
RX 540 CM
CM
RX 74
74
CAMERON
CAMERON 20
20 3/4"-3K
3/4"-3K 368
368 CM
CM
RAMS 5"
RAMS 5"
164
164 CM
CM 5
5

BLIND
BLIND RAMS
RAMS

20
20 3/4"-
3/4"- 3K
3K
RX
RX 74
74
4
4 1/16"
1/16" x
x 10K
10K
4
4 2
2 1/16"
1/16" x
x 10K
10K
66 CM
66 CM

20
20 3/4"-
3/4"- 3K
3K
RX
RX 74
74
100
100 CM
CM
7
7
BLIND
BLIND FL
FL 3
3
20
20 3/4"-
3/4"- 3K
3K
RX
RX 74
74 GROUND
GROUND
63 2 LEVEL
63 CM
CM 2 LEVEL

20
20 3/4"-
3/4"- 3K
3K
RX
RX 74
74 CUT
CUT C.P.
C.P. 148
148 CM
CM
200
200 CM
CM

83
83 CM
CM
1
1
36"
36" O.D.
O.D. BASE
BASE PLATE
PLATE

18
18 5/8" C.P. 52
52 CM
R.
5/8" C.P. 30"
30" CELLAR
CM
R. Krych
Krych CELLAR
LEVEL
LEVEL

FIG. 2

Pre-Spud Recommendations

a. Remove bit jets or have large size jets to allow high volume circulation

b. Install a solid Drillstring Float Valve to avoid bit plugging and flow into drillstring

c. 6.6” Liners must be installed in Pumps to allow high volume circulation during diverting
operations.

d. Ensure Return Flow Meter is installed and properly working

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 7 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR

Recommendations for Drilling the 8-1/2” Pilot Hole

e. It is recommended to Maintain Constant Bit Weight (drilling program mentions between 2-

5Ton).

f. ROP must be steady and controlled (recommended 10m/hr.)

g. Recognize Drilling Breaks and perform a Flow-Check if drilled 1m into it.

h. It is recommended to Circulate bottoms up for 30 Minutes before making a connection to

minimize drill gas in the annulus

i. Do Not stop circulation until the drillstring is at the connection depth

j. Flow Check Before the connection for at least 5 minutes with slow pipe rotation
(recommended 20 RPM).

k. After the connection start slow pipe rotation before starting circulation to minimize wellbore
pressure.

l. It is recommended to circulate at Drilling Pump rate and slowly reciprocate the drillstring

m. It is recommended to Circulate a minimum of 1-1/2 to 2 times bottoms up strokes, and

continue circulating until the shakers are clear of any cuttings.

Recommendations for POOH in the Pilot Hole

n. It is recommended to have the supervision of the Company Man, Tool Pusher and/or Boots
& Coots Personnel pulling out of the hole in the first 10 stands minimum.

o. Before Pulling Off Bottom we must Flow-Check the well with slow rotation for at least 15
minutes.

p. It is recommended to limit the initial Overpull to ½ the weight of the BHA

q. In order to prevent Swab Pressure and to maintain the hole full of mud we must POOH at +/-
25% drilling pump rate.

r. Once the bit is POOH there must be a Flow-Check conducted

4. According to the Drilling Program, after 8-1/2” the pilot hole is drilled the hole would be drilled to
enlarge to 16” with bit. For this purpose special precautions would have to be taken, specially
while tripping, as Swabbing is considered to be the highest risk if gas presence was discovered
in a section of the 8-1/2” pilot hole.

Planning and Preparations to Open 16” Hole

a. Remove bit jets or have large size jets to allow high volume circulation

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 8 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR

b. Install a solid Drillstring Float Valve to avoid bit plugging and flow into drillstring

c. 6.6” Liners must be installed in Pumps to allow high volume circulation during diverting
operations.

d. Ensure Return Flow Meter is installed and properly working

Recommendations for Opening 16” Hole

e. It is important to maintain a Constant Bit Weight, according to the drilling program it is

suggested to be between 2-5Ton, recommendations is not to exceed 3 Ton and just allow to
vary with the different formations previously identified.

f. It is very important to have a very slow Rate of Penetration (ROP) – If there was indeed a
Shallow Gas Zone detected in the Pilot Hole then the ROP must be slow, recommended to
be 2 m/hr. This is done in order to minimize the gas content in returning mud. This ROP has
to be maintained until the bottom of the Gaz Zone is reached. Once the bottom of the zone is
reached, it is recommended to Circulate Bottoms-Up before drilling ahead.

g. It is recommended to Circulate Bottoms-Up with a Hi-Vis sweep before making connections

in order to minimize cutting and drill gas in the Annulus.

Planning for Tripping Out of the Hole while Opening 16” Hole

h. It is highly recommended that the Company Man, Tool Pusher and Boots & Coots
representative are present on the drill floor for at least the first 10 stands off bottom until no
overpull (minimum) is observed. It is important to understand that most of the Shallow Gas
blow outs have occurred due to swabbing the well. This becomes more important if Gas
Zones were detected in the Pilot Hole.

i. If a Gas Zone was detected in the pilot hole, it is recommended to pump out of the hole 1 to
2 stands into the last casing shoe.

j. It is recommended to POOH on the elevators at no more than 2 min/stand, flow checks must
be performed prior to start POOH.

k. The Circulating Trip Tank (CTT) with a trip Tally Sheet must be sued to determine if the hole
is Swabbing.

l. It is recommended that the Company Man, Tool Pucher and Boots & Coots representative
are present on the drill floor while pulling the BHA and Bit to surface. The well must be Flow-
Checked for at least 5 minutes. The Trip Tank must be monitored while out of the hole.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 9 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
Overall Summary of Drilling Practices Recommendations:

1. Install an adequate diverter system with large outlets to accommodate 12 inch internal diameter
vent lines (2 each) should be used. Vent lines should be laid out to a distance of approximately 150
meters.

a. The diverter controls should be able to flow from one vent line to the other.

b. The best single means of increasing the life of the diverter system is to increase the
diameter of the diverter lines combined with a reduction in diameter at the outlet of the vent
line. Combining this action with a simultaneous reduction in the wellbore diameter (pilot
hole), an erosion rate reduction is possible.

2. Diverter activation and crew response time should be short and well understood.

a. Crew should know how to respond and their roles in case of a shallow gas kick.

b. Highly recommend practicing diverter activation and response procedures to shallow gas
kicks.

3. A shoe bond test and a formation integrity test should be performed below the 18 5/8 inch casing.

a. It is vital and extremely important to know the strength of the formation immediately below
the shoe.

4. A pilot hole should be drilled below the 18 5/8 inch casing. The small hole size will facilitate a
dynamic well killing operation.

a. The pilot hole section should be drilled at a control rate to minimize gas volume build up in
the mud.

b. Circulation rates should be high to flush gas out of the hole.

c. An 8.5 in diameter pilot hole is recommended.

d. The pilot holes should be drilled with caution (reduced ROP) as there is no guarantee that a
blowout will be prevented.

5. Restrict the penetration rate.

a. To avoid an excessive build-up of solids in the hole, which could cause formation breakdown
and losses.

b. To minimize the penetration into the gas bearing formation, with in turn minimizes the influx
rate.

c. To avoid reducing the hydrostatic head of the drilling fluid if an excess of drilled gas is
entrained in the mud.

6. Every effort shall be made to minimize the possibility of swabbing.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 10 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
a. Consider that most shallow gas blowouts have occurred while tripping out of the hole.
Therefore, plan to drill the shallow gas section with this in mind.

b. Pumping out of the hole at optimum circulating rates is recommended for all upward pipe
movements (e.g. making connections and tripping).

c. It is important to check that the circulation rate is sufficiently high and the pulling speed
sufficiently low to ensure that no swabbing will take place.

d. Recommend a Top Drive System to facilitate efficient pumping out of hole operations.

7. Accurately measure drilling mud returns and mud return rates in order to detect excessive gas as
early as possible.

a. Properly calibrated and functioning gas detection equipment is extremely important and
essential.

b. An increase in mud rate returns is a very good indicator of a kick in progress.

c. While drilling at shallow depths in normally pressured formation, there may not be indication
of a gas pocket other than higher gas readings in the mud returns.

8. Flow checks are to be performed often (Shallow gas flows and blowouts will develop within seconds
to a few minutes and should be carefully monitored). Flow checks should be performed at a
minimum during the following:

a. Before tripping

b. At any time a sharp penetration rate increase or tank level anomaly is observed.

c. When any anomaly appears on the MWD log (if an MWD data transmission system is used).

d. At any specific depths referred to in the drilling program (taken from the shallow seismic
survey).

e. At each connection while drilling the pilot hole in potential shallow gas areas.

9. A float valve (NRV) should (must) be installed in all bottom hole assemblies (BHAs) which are used
in top hole drilling in order to prevent uncontrollable flow up the drill string.

a. The use of two float valves in the BHA may be considered in potential shallow gas areas.

b. A drop in dart sub by itself is not sufficient.

10. Large bit nozzles or no nozzles and large mud pump liners should be used.

a. Large nozzles are advantageous during dynamic killing operations, since a higher pump rate
can be achieved.

i. As an example, a pump rate of approximately 2700 lt./min at 3000 psi pump pressure
can be obtained using a 1300-1600 HP pump with 3 x 14/32 in. nozzles installed in the
bit.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 11 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR
ii. By using 3 x 18/32 in. nozzles, the pump rate can be increased to around 3800 lt./min at
3000 psi.

b. The use of center nozzle bits will increase the maximum circulation rate even further and
also reduces the chance of bit balling.

c. Large bit nozzles or no nozzles should be used to allow lost circulation material (LCM) to be
pumped through the bit in case of losses.

11. Have kill mud volume of at least the pilot hole content pre-mixed, available and ready to be pumped
immediately at maximum rate. However, refer to the volumes recommended in the dynamic kill
simulation.

12. Dynamic kill simulations should be run to determine the rate and volume of kill mud required to
control a shallow gas blowouts.

a. The geometry of the wellbore will play a big part determining if a dynamic kill is possible.

b. The fracture gradient is normally the factor that controls the rates that can be attempted in a
dynamic kill scenario.

c. The well should not be closed in (unless absolutely positive that he fracture pressure below
the 18 5/8 shoe will be exceeded)

13. MWD/PWD systems to detect shallow gas presence and behavior should be used in the drill string,
although it has limitations. Consider that:

a. The tool is located above the bit, which means that the zone has been penetrated before the
MWD system can detect the presence of gas.

b. The down hole computer cycle time and signal time is much greater than the allowable
response time to control a shallow gas flow.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 12 of 13
 Shallow Gas Drilling Practices
TIHS-1 Well UNAR

Recovery Plan and Alternatives

In the case of a confirmed shallow gas blowout follow the process below.

1. Evacuate rig. Apply access and egress control. Keep pumps supplied with water if possible.

2. Activate the dynamic kill operation. Pump at maximum rate down drill pipe with kill fluid.

3. If dynamic kill operation is not successful. Establish "Hot Zone" and "Safe Area". Prepare for
possible diverter failure and fire. Consider the following options:

1. Continue with sustained blowout flow pumping water and other available fluids in order to
induce a downhole bridge off.

2. Pump reactive plugging materials.

3. Skidding the rig before diverter failure or broach. This will require dropping the drill pipe,
limiting control to a relief well.

Prepared By: A. Ynostroza /Juan

Authorization: Approval: Revision No: 0
Camacho Date: 30-June-2012
APR-09 Page 13 of 13