MDM Energy, Inc., Daily Drill Report Hinkle Trust #2

Daily Drill Report

Project:

Hinkle Trust #2 Permit # 060385

Effingham County, IL

SEC 11 TWP 06N RGE 05E

January

2010

Day

Date

Operation

Pre-Drill

Friday

Moved all drilling equipment and chemicals (mud) from

29-Jan

Hinkle Trust #1 location to Hinkle Trust #2 location.

Skidded rig with mast up and prepared location for drilling.

Scheduled to begin drilling surface on Monday 02/01/10.

1

1-Feb

Time of Report: 7:00AM        Activity: Rigging up to drill surface.

2

2-Feb

Time of Report: 8:00AM   Activity: Drlg.    Formation:

T.D.: 195’   Footage Made: 195’   Hrs. Dlg.: 11hrs

Hrs Other:  13hrs (note:1)

Bit #1  Mfg.: Reed  Type:BB  Size: Surface: 12 1/4" (note:2)

Jets - 8  # Size: 10   Hrs. On Bit: 11hrs  Footage On Bit: 95' (note:2)

Wt. On Bit: 6000lbs RPM: 60  Pipe Thread: x-hole Pipe Size: 4 ½’’

Mud : Fresh Water

Note 1: Pumped water, drilled 84 ft. surface hole, ran 8 5/8” pipe,

nipple up, and wait on cement.

Note 2: Drilled a 39’ deep rat hole with 8 3/4’’ bit.

Cemented 84 ft. 8 5/8” casing with 75 SX cement, plug down at 1:00 AM.

3

3-Feb

Time of Report: 7:00AM   Activity: Drlg.    Formation: Shale & Lime

T.D.: 1125’   Footage Made: 1030’   Hrs. Dlg.: 18hrs

Hrs. Trip: None   Hrs. Circ.:2 hrs  Hrs. Maint.: 1 hr; worked on mud pump

Hrs Other:  3 hrs; connections, jetting pits, and S.H.T

Bit #2  Mfg.: Reed  Type:PDC  Size: Surface: 7 7/8"

Jets - 6  # Size: 11   Hrs. On Bit: 29hrs  Footage On Bit: 1125'

Wt. On Bit: 6000lbs RPM: 60  Pipe Thread: x-hole Pipe Size: 4 ½’’

Drill Collars:15 Length:453’  Drill Collar Thread: x-hole   Drill Collar Size:6’’

Mud : Fresh Water

S.H.T. @ 500’ is 1 deg.

S.H.T. @ 1000’ is 1 deg.

4

4-Feb

Time of Report: 7:00AM   Activity: Drlg.    Formation: Shale & Lime

T.D.: 1972’   Footage Made: 847’   Hrs. Dlg.: 16hrs

Hrs. Trip: None   Hrs. Circ.:3 hrs; SHT and mud up Hrs. Maint.: none

Hrs. Other: 5 hrs; jet pits, pump water, and mud up

Bit #2  Mfg.: Reed  Type:PDC  Size: Surface: 7 7/8"

Jets - 6  # Size: 11   Hrs. On Bit: 34hrs  Footage On Bit: 1877' (note:1)

Wt. On Bit: 8000lbs RPM: 58  Pipe Thread: x-hole Pipe Size: 4 ½’’

Drill Collars:15  Length:453’  Drill Collar Thread: x-hole   Drill Collar Size:6’’

Mud : Fresh Water (Preparing to mud up)

Note 1: Footage on bit is TD minus 95’ drilled with surface bit.

S.H.T. @ 500’ is 1 deg.

S.H.T. @ 1000’ is 1 deg.

S.H.T. @ 1500’ is 1 deg.

5

5-Feb

Time of Report: 7:00AM   Activity: Drlg.    Formation: Sand & Lime

T.D.: 2550’   Footage Made: 578’   Hrs. Dlg.: 19hrs

Hrs. Trip: None   Hrs. Circ.:1 hr  Hrs. Maint.: none

Hrs. Other: 4 hrs; S.H.T., jet pits, and make connections

Bit #2  Mfg.: Reed  Type:PDC  Size: Surface: 7 7/8"

Jets - 6  # Size: 11   Hrs. On Bit: 53hrs  Footage On Bit: 2455'

Wt. On Bit: 12000lbs RPM: 52  Pipe Thread: x-hole Pipe Size: 4 ½’’

Drill Collars:15  Length:453’  Drill Collar Thread: x-hole   Drill Collar Size:6’’

Mud Depth: 2550’  Mud Wt.: 9.1  Vis.: 52   Filter Cake: 1/32 Chlorides:700

Water Loss:7.8    PV:8.0   YP:7.0

Mud Pump: SPM 54 Mud Pump Pressure: 800lbs psig.

S.H.T. @ 500’ is 1 deg.

S.H.T. @ 1000’ is 1 deg.

S.H.T. @ 1500’ is 1 deg.

S.H.T. @ 2000’ is 7/8 deg.

6

6-Feb

Time of Report: 7:00AM   Activity: Shutting  Down Operations

T.D.: 2550'

Past 24 hours, condition mud for logs, trip out of hole, Weatherford logs

well, talley and run 2550 ft. 4 ½” production casing.  Schwartz on location

to cement with 355 sx.  Circulated 9 barrels into pit. Plug down at 1:00 am.