f Well - Utah · WELL NAME and NUMBER ... SURFACE OWNERSHIP FEDERAL INDIAN STATE FEE 13. NAME OF SURFACE OWNER (if box ... When testing the killlinevalve(s)

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS AND MINING

APPLICATION FOR PERMIT TO DRILL 1. WELL NAME and NUMBER

Cane Creek Unit 19-2

2. TYPE OF WORK

DRILL NEW WELL REENTER P&A WELL DEEPEN WELL 3. FIELD OR WILDCAT

UNDESIGNATED

4. TYPE OF WELLOil Well Coalbed Methane Well: NO

5. UNIT or COMMUNITIZATION AGREEMENT NAMECANE CREEK

6. NAME OF OPERATORFIDELITY E&P COMPANY

7. OPERATOR PHONE303 893-3133

8. ADDRESS OF OPERATOR2585 Heartland Drive, Sheridan, WY, 82801

9. OPERATOR [email protected]

10. MINERAL LEASE NUMBER(FEDERAL, INDIAN, OR STATE)

UTU53626

11. MINERAL OWNERSHIP

FEDERAL INDIAN STATE FEE 12. SURFACE OWNERSHIP

FEDERAL INDIAN STATE FEE

13. NAME OF SURFACE OWNER (if box 12 = 'fee')

14. SURFACE OWNER PHONE (if box 12 = 'fee')

15. ADDRESS OF SURFACE OWNER (if box 12 = 'fee')

16. SURFACE OWNER E-MAIL (if box 12 = 'fee')

17. INDIAN ALLOTTEE OR TRIBE NAME(if box 12 = 'INDIAN')

18. INTEND TO COMMINGLE PRODUCTION FROMMULTIPLE FORMATIONS

YES (Submit Commingling Application) NO

19. SLANT

VERTICAL DIRECTIONAL HORIZONTAL

20. LOCATION OF WELL FOOTAGES QTR-QTR SECTION TOWNSHIP RANGE MERIDIAN

LOCATION AT SURFACE 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

Top of Uppermost Producing Zone 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

At Total Depth 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

21. COUNTYGRAND

22. DISTANCE TO NEAREST LEASE LINE (Feet)1172

23. NUMBER OF ACRES IN DRILLING UNIT1951

25. DISTANCE TO NEAREST WELL IN SAME POOL(Applied For Drilling or Completed)

0

26. PROPOSED DEPTHMD: 7500 TVD: 7500

27. ELEVATION - GROUND LEVEL

6012

28. BOND NUMBER

CO1395

29. SOURCE OF DRILLING WATER /WATER RIGHTS APPROVAL NUMBER IF APPLICABLE

Municipal

Hole, Casing, and Cement Information

String Hole Size Casing Size Length Weight Grade & Thread Max Mud Wt. Cement Sacks Yield Weight

Cond 26 20 0 - 60 94.0 J-55 ST&C 15.0 Class G 81 1.17 15.0

Surf 17.5 13.375 0 - 1500 54.5 J-55 ST&C 13.5 Type II 200 3.48 11.0

Type II 193 1.8 13.5

I1 12.25 9.625 0 - 4604 40.0 HCN-80 LT&C 15.8 Halliburton Premium , Type Unknown 334 2.16 12.5

Halliburton Premium , Type Unknown 255 1.23 15.8

Prod 8.75 7 0 - 4604 29.0 N-80 LT&C 16.5 Halliburton Premium , Type Unknown 352 1.3 16.5

4604 - 7500 35.0 P-110 LT&C 16.5 None

ATTACHMENTS

VERIFY THE FOLLOWING ARE ATTACHED IN ACCORDANCE WITH THE UTAH OIL AND GAS CONSERVATION GENERAL RULES

WELL PLAT OR MAP PREPARED BY LICENSED SURVEYOR OR ENGINEER COMPLETE DRILLING PLAN

AFFIDAVIT OF STATUS OF SURFACE OWNER AGREEMENT (IF FEE SURFACE) FORM 5. IF OPERATOR IS OTHER THAN THE LEASE OWNER

DIRECTIONAL SURVEY PLAN (IF DIRECTIONALLY OR HORIZONTALLY

DRILLED)

TOPOGRAPHICAL MAP

NAME Stephanie Masters TITLE Operations Tech PHONE 307 675-4924

SIGNATURE DATE 05/17/2011 EMAIL [email protected]

API NUMBER ASSIGNED

43019500130000

Permit Manager

APPROVAL

FORM 3

AMENDED REPORT

API Well Number: 43019500130000

FORM 3STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCES AMENDED REPORTDIVISION OF OIL, GAS AND MINING

APPLICATION FOR PERMIT TO DRILL 1. WELL NAME anCdaNe reEkRUnit19-2

2. TYPE OF WORK 3. FIELD OR WILDCATDRILL NEW WELLI REENTER P&A WELL DEEPEN WELL I UNDESIGNATED

4. TYPE OF WELL 5. UNIT or COMMUNITIZATION AGREEMENT NAMEOil Well Coalbed Methane Well: NO CANE CREEK

6. NAME OF OPERATOR 7. OPERATOR PHONEFIDELITY E&P COMPANY 303 893-3133

8. ADDRESS OF OPERATOR 9. OPERATOR E-MAIL2585 Heartland Drive, Sheridan, WY, 82801 [email protected]

10. MINERAL LEASE NUMBER 11. MINERAL OWNERSHIP 12. SURFACE OWNERSHIP(FEDERAL,INDIAN,ORUSTU66 FEDERAL I INDIAN I STATE FEE FEDERAL INDIAN STATEI FEEl

13. NAME OF SURFACE OWNER (if box 12 = 'fee') 14. SURFACE OWNER PHONE (if box 12 = 'fee')

15. ADDRESS OF SURFACE OWNER (if box 12 = 'fee') 16. SURFACE OWNER E-MAIL (if box 12 = 'fee')

17. INDIAN ALLOTTEE OR TRIBE NAME 18. INTEND TO COMMINGLE PRODUCTION FROM 19. SLANT

(if box 12 = 'INDIAN')MULTIPLE FORMATIONS

YES (Submit Commingling Application) NO VERTICAL DIRECTIONAL HORIZONTAL I

20. LOCATION OF WELL FOOTAGES QTR-QTR SECTION TOWNSHIP RANGE MERIDIAN

LOCATION AT SURFACE 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

Top of Uppermost Producing Zone 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

At Total Depth 491 FNL 1172 FWL NWNW 19 26.0 S 20.0 E S

21. COUNTY 22. DISTANCE TO NEAREST LEASE LINE (Feet) 23. NUMBER OF ACRES IN DRILLING UNITGRAND 1172 1951

25. DISTANCE TO NEAREST WELL IN SAME POOL 26. PROPOSED DEPTH(Applied For Drilling or Completed) MD: 7500 TVD: 75000

27. ELEVATION - GROUND LEVEL 28. BOND NUMBER 29. SOURCE OF DRILLING WATER /WATER RIGHTS APPROVAL NUMBER IF APPLICABLE

6012 CO1395 Municipal

Hole, Casing, and Cement Information

Hole Size Casing Size Length Weight Grade & Thread Max Mud Wt. Cement Sacks Yield Weight

26 20 0 - 60 94.0 J-55 ST&C 15.0 Class G 81 1.17 15.0

17.5 13.375 0 - 1500 54.5 J-55 ST&C 13.5 Type II 200 3.48 11.0

Type II 193 1.8 13.5

12.25 9.625 0 - 4604 40.0 HCN-80 LT&C 15.8 Halliburton Premium , Type Unknown 334 2.16 12.5

Halliburton Premium , Type Unknown 255 1.23 15.8

8.75 7 0 - 4604 29.0 N-80 LT&C 16.5 Halliburton Premium , Type Unknown 352 1.3 16.5

4604 - 7500 35.0 P-110 LT&C 16.5 None

ATTACHMENTS

VERIFY THE FOLLOWING ARE ATTACHED IN ACCORDANCE WITH THE UTAH OIL AND GAS CONSERVATION GENERAL RULES

WELL PLAT OR MAP PREPARED BY LICENSED SURVEYOR OR ENGINEER COMPLETE DRILLING PLAN

AFFIDAVIT OF STATUS OF SURFACE OWNER AGREEMENT (IF FEE SURFACE) FORM 5. IF OPERATOR IS OTHER THAN THE LEASE OWNER

DIRECTIONAL SURVEY PLAN (IF DIRECTIONALLY OR HORIZONTALLY TOPOGRAPHICAL MAP

DRILLED)

NAME Stephanie Masters TITLE Operations Tech PHONE 307 675-4924

SIGNATURE DATE 05/17/2011 EMAIL [email protected]

API NUMBER ASSIGNED APPROVAL

43019500130000 I

Permit


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCane CreekUnit#19-2 Lease No. UTU-53626491' FNLand 1172'FWLLot1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1Approvalof Operationson Onshore

FederalandIndianOiland Gas Leases

Allleaseand/orunitoperationswillbeconductedinsuchamannerthatfullcomplianceismadewithappIlcablelaws,regulations(43CFR3100),OnshoreOilandGasOrderNo.1,andtheapprovedplanofoperations.Theoperatoris fullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbe furnishedthefieldrepresentativetoinsurecompliance.

1. ESTIMATEDTOPSOFALLGEOLOGICGROUPS,FORMATIONS,MEMBERS,ORZONES

Theestimatedtopsofimportantgeologicmarkersareas follows:

Formation MeasuredDepth Subsea

NavajoSand Surface - - -

WingateSand 345' +5,694'

Chinie 702' +5,337'

Moenkopi 1,051' +4,988'

Cutler 1,518' +4,521'

HonakerTrail 2,924' +3,115'

Paradox 4,253' +1,786'

CaneCreekShale 7,299' -1,260'

T.D. 7,500' -1,461'

2. ESTIIWATEDDEPTHANDTHICKNESSOFOIL,GAS,WATER&OTHERMINERALZONES

Theestimateddepthsatwhichthetopandbottomoftheanticipatedwater,oil,gasorothermineralbearingformationsare expectedtobe encotinteredare as follows:

Substance Formation Depth Thickness

Brine 16Salt 4,449' 60' à

Oil CaneCreek 7,299' 60'


ONSHOREORDERNO.1 FlDENTlAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No. UTU-53626491'FNLand1172'FWLLot1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page2

AIIfreshwaterandprospectivelyvaluablemineralsencounteredduringdrilling,willbe recordedbydepthand willbe cased and cemented. Whenpossible,waterflowrateswillbe measuredandsampleswillbetakenandanalyzedwiththeresultsbeingsubmittedtotheBLM.Alloilandgasshowswillbe testedtodeterminecommercialpotential.

3. SPECIFICATIONSFORBLOWOUTPREVENTIONEQUIPMENTANDDIVERTERSYSTEMS

FidelityExploration&ProductionCompany'sminimumspecificationsforpressurecontrolequipmentareas follows:

RamType: 10,000psiw.p.

BOPsystemswillbeconsistentwithAPIRP53andOnshoreOilandGasOrderNo.2. Pressure testsofthesurfacecasingandallBOPequipmentpotentiallysubjecttopressurewillbeconductedbeforedrillingthesurfacecasingshoe. Blowoutpreventercontrolswillbe installedpriortodrillingthesurfacecasingshoe andwillremaininuse untilthewelliscompletedorabandoned. Rampreventerswillbeinspectedand operatedeachtrip(nomorethanoncea dayisnecessary),andannularpreventerswillbe inspectedandoperatedweeklytoensuregoodmechanicalworkingorder.These inspectionsshallbe recordedinthedrillinglogand inthedailydrillingreport.

Ramtypepreventersandassociatedequipmentshallbetestedtoapprovedstackworkingpressureif isolatedby testplugor to 70 percentof internalyieldpressureof casing. Pressureshallbemaintainedforat least10minutesoruntilrequirementsoftestaremet,whicheverislonger.Ifa testplugis utilized,nobleed-offpressureisacceptable.Fora testnot utilizinga testplug,ifa declineinpressureof morethan10percentin30 minutesoccurs,thetestshallbe consideredtohavefailed.Valveoncasingheadbelowtestplugshallbe openduringtestofBOPstack.

Annulartypepreventers(ifused)shallbe testedto50 percentofratedworkingpressure.Pressureshallbe maintainedat least10minutesoruntilprovisionsoftestaremet,whicheveris longer.

Valvesshallbe testedfromworkingpressuresideduringBOPEtestswithalldownstreamvalvesopen.

When testingthekilllinevalve(s)thecheckvalveshallbe heldopenortheballremoved.

A BOPEpitleveldrillshallbeconductedweeklyforeachdrillingcrew.

PERMITC0


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491' FNLand 1172'FWLLoti (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page3

TheBOPandrelatedequipmentshallmeettheminimumrequirementsofOnshoreOilandGasOrderNo.2 forequipmentandtestingrequirements,procedures,etc.,andindividualcomponentsshallbeoperableas designed.Chartrecordersshallbe used forallpressuretests.

Pressure testsshallapplytoallrelatedwellcontrolequipment

Alloftheabovedescribedtestsand/ordrillsshallbe recordedinthedrillinglog. Testcharts,withindividualtest resultsidentified,shallbe maintainedon locationwhiledrillingand shall be madeavailabletoa BLMrepresentativeuponrequest.Pressuretestsshallapplytoallrelatedwellcontrolequipment,

a. ThesizeandratingoftheBOPstackisshownontheattacheddiagram.Althougha righasnotbeenchosentodrillthiswell,mostoftheequipmentforthisdepthof holeinthearea usea 1Fje10,000psiworkingpressureblowoutpreventor.

b. Achokelineanda killlineare tobe properlyinstalled.The killlineis not tobe used as afill-upline.

c. Theaccumulatorsystemshallhavea pressurecapacitytoprovideforrepeatedoperationofhydraulicpreventers.

d. Drillstringsafetyvalve(s),tofitalltoolsinthedrillstring,are tobemaintainedon therigfloorwhiledrillingoperationsare inprogress.

4. PROPOSEDCASINGPROGRAM

a, Theproposedcasingandcementingprogramshallbe conductedas approvedto protectand/orisolate allusablewaterzones,potentiallyproductivezones, lostcirculationzones,abnormallypressuredzones, and any prospectivelyvaluable depositsof minerals.Anyisolatingmediumotherthancementshallreceiveapprovalpriortouse. Thecasingsettingdepthshallbe calculatedtopositionthecasingseat oppositea competentformationwhichwillcontainthe maximumpressureto whichit willbe exposed duringnormaldrillingoperations. Determinationofcasingsettingdepthshallbe based on all relevantfactors,including;presencelabsenceof hydrocarbons;fracturegradients;usable water zones;formationpressures;lostcirculationzones;otherminerals;orotherunusualcharacteristics.Allindicationsofusable watershallbe


ONSHOREORDERNO.1 FIDENTIAL- TiGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand1172'FWLLot1 (NWNW)Section19,T26S- R20E DRILUNGPROGRAMGrandCounty,Utah Page4

b. Casingcollarsshallhavea minimumclearanceof0.422inchesofallsidesinthehole/casingannulus,withrecognitionthatvariancescan be grantedforjustifiedexceptions.

c. Allwaitingoncementtimesshallbeadequatetoachievea minimumof500 psicompressivestrengthat thecasingshoepriortodrillingout.

d. Allcasingexcepttheconductorcasing,shallbeneworreconditionedandtestedusedcasingthatmeetsorexceedsAPIstandardsfornewcasing.

e. Thesudacecasingshallbe cementedbacktosurfaceeitherduringtheprimarycementjoborbyremedialcementing,

f. Allindicationsofusable watershallbe reportedtotheauthorizedofficerpriortorunningthenextstringofcasingorbeforepluggingordersare requested,whicheveroccursfirst.

g. Three centralizerswillbe runonthebottomthreejointsofsurfacecasingwitha minimumofonecentralizerperjointstartingwiththeshoejoint.

h. Topplugsshallbe usedtoreducecontaminationofcementbydisplacementfluid.Abottomplugor otheracceptabletechnique,such as a suitablepreflushfluid,innerstringcementmethod,etc.shallbe utilizedtohelp isolatethecementfromcontaminationby themudfluidbeingdisplacedaheadofthecementslurry.

i. Allcasing stringsbelowtheconductorshall be pressuretestedto022 psiperfootofcasingstringlengthor1500psi,whicheverisgreater,but nottoexceed70 percentoftheminimuminternalyield.Ifpressuredeclinesmorethan10percentin30 minutes,correctiveactionshallbetaken,

j. Onallexploratorywells,andonthatportionofanywellapprovedfora 5MBOPEsystemorgreater,a pressureintegritytestofeachcasingshoe shallbe performed.Formationat theshoe shallbe testedtoa minimumofthemudweightequivalentanticipatedtocontroltheformationpressuretothenextcasingdepthor at totaldepthofthewell. Thistestshall beperformedbeforedrillingmorethan20 feetofnewhole.

PElk


ONSHOREORDERNO.1 CONFIDENTIAL- TlGHTHOLEFidelityExploration&ProductionCompanyCane CreekUnit#19-2 Lease No.UTU-53626491' FNLand 1172'FWLLot1 (NWNW)Section19,T26S - R20E DRILLINGPROGRAMGrandCounty,Utah Paqe 5

*k. Theproposedcasingprogramwillbe as follows:

Purpose Depth HoleSize 0.D. Weight Grade Type New/Used

Conductor 0' - 60' 26" 20" - - - - - - - - - New

Surface 0' - 1,500' 17-1/2" 13-3/8" 54.5# J-55 ST&C New

Intermediate 0' - 4,604' 12-1/4" 9-5/8" 40# HCL-80 LT&C New

Production O'- 4,604' 8-3/4" 7" 29# N-80 LT&C New

Production 4,604'-7,500' 8-3/4" 7" 35# P-110 LT&C New

Purpose Collapse Burst Tensile

Surface 1,130 2,730 514,000

Intermediate 4,230 5,750 837,000

29#Production 7,020 8,160 597,000

35#Production 12,700 13,020 996,000

* Casingdesignsubjecttochange,pendingmaterialavailabilityandcost. Ifmudweightexceeds 9.5 ppgonsurfaceorintermediatehole,or18.0ppgatTD,casingdesignmaybealtered. Tackweldfloatshoetosurfacecasing. Strapweldfirstcasingjointandthebottomofthecollarofthesecondjointonsurfaceandintermediatestringsofcasing. Cleananddriftallstringsofcasingpriorto running. Removeallthreadsealant (Kindex)priorto running.Unloadallcasingand tubingstringswitha forklift.

* Revised


ONSHOREORDERNO.1 CONFlDENTIAL- T1GHTHOLEFidelityExploration&ProductionCompanyCane Creek Unit#19-2 Lease No.UTU-53626491' FNLand1172'FWLLot1 (NWNW)Section19,T26S - R20E DRILLINGPROGRAMGrandCounty,Utah Page 6

5. PROPOSEDCEMENTINGPROGRAM

*a. Thecementprogramwillbe as follows:

Surface TypeandAmount

TOC@Surface Lead:200sxSanJuanPRBli,3.48ft3/sk,11ppg.Tail:193sx SanJuanPRBll, 1.80ft3/sk,13.5ppg.

Intermediate Typeand Amount

TOC@200'above Lead:334sxHalliburtonLightPremium,0.8%HaladR-322(LowFluidLosssurfacecasingshoe Control),0.2%WG-17(AdditiveMaterial),0.125lbm/skPoly-E-Flake(Lost

CirculationAdditive),0.2%HR-5(Retarder),15%Salt,2.16ft3/sk,12.5ppg.Tail:255sx PremiumCement,94 1bm/skPremiumCement,0.6%HaladR-413(LowFluidLossControl),0.3%SuperCBL(Gas MigrationControl),0.45%HR-5 (Retarder),418%Salt,0.3%D-AIR3000(Defoamer),0.3%Versaset(ThixotropicAdditive),1.23 ft3/sk,15.81bm/gal.

Production TypeandAmount

TOC@4,404' 352sxPremiumCement,94 lbm/skPremiumCement,15% Salt,0.6%HaladR-413(LowFluidLossControl),0.2%HaladR-344(LowFluidLossControl),0.2%SuperCBL(Expander),0.4%D-AIR3000(Defoamer),6%WellLife665 (AdditiveMaterial),0.4%HR-5(Retarder),0.3%CFR-3(Dispersant),15%HI-Dense#4 (HeavyWeightAdditive),1.30 ft3/sk,16.5ppg.

* Surface,Intermediateand Productioncementcalculatedwith0% excess. However,sufficientexcesscementwillbe onlocationtobringcementtocalculateddepths.

b. Aftercementingbutbeforecommencinganytest,thecasingstringshallstandcementeduntilthecementhas reacheda compressivestrengthofat least500psiat theshoe. WOCtimeshallberecordedinthedriller'slog.

c. Thefollowingreportsshallbe filedwiththeDistrictManagerwithin30 daysaftertheworkiscompleted.

1. Progress reports,Form3160-5(formerly9-331) 'SundryNoticesand ReportsonWells",mustincludecompleteinformationconcerning:

* Revised 10-28-08 ¢* ©¾


ONSHOREORDERNO.1 FIDENTIAL- TlGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491' FNLand1172'FWLLot1 (NWNW)Section19,T26S-R20E DRILLINGPROGRAMGrandCounty,Utah Page7

a. Settingofeachstringofcasing,showingthesize,grade,weightofcasingset, holesize,settingdepth,amountsand typeofcenientused,whethercementcirculatedor the topof thecementbehind the casing,depthofcementingtoolsused,casingtestmethodand results,and thedate workwasdone. Showthespuddateonthefirstreportssubmitted.

b. Temperatureorbond logsmustbe submittedforeach wellwherethecasingcementwasnotcirculatedtothesulface.

d. Auxiliaryequipmenttobe usedisas follows:

1. Kellycock2. Nobitfloatisdeemednecessary.3. Asubwitha fullopeningvalve.

6. PROPOSEDCIRCULATINGMEDIUMORMEDIUMS

a. . The proposedcirculatingmediumstobe employedindrillingare as follows:

Interval MudType MudWt. Visc. F/L

O' 1,500' AirMist - - - - - - - -

1,500' - 4,604' AirMist/AeratedWater - - - - - - - - -

4,604¾7,500' OilBasedMud 15.5-16.5ppg 50-55 5.0

Sufficientmudmaterialswillbe storedon locationtornaintainwellcontrolandcombatlostcirculationproblemsthatmightreasonablybe expected,

b. Duetopotentialforcontaminationofusablequalitywateraquifers,chromatesare bannedfromFederalleases.

c. HazardoussubstancesspecificallylistedbytheEPAas a hazardouswaste ordemonstratinga characteristicof a hazardouswastewillnot be used in drilling,testingor completionoperations.


ONSHOREORDERNO.1 CO NTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand1172' FWLLot1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page8

7. PROPOSEDTESTING,LOGGING,ANDCORING

Theanticipatedtypeandamountoftesting,loggingandcoringare as follows:

a. Nodrillstemtestsareanticipated.However,if DST'sare run,thefollowingrecluirementswillbeadhered to:

Initialopeningof drillstem testtoolsshallbe restrictedto daylighthoursunlessspecificapprovaltostartduringotherhoursisobtainedfromtheauthorizedoffícer.However,DST'smaybeallowedtocontinueat nightifthetestwasinitiatedduringdaylighthoursandtherateofflowis stabilizedand ifadequatelightingis available(i.e.lightingwhichis adequateforvisibilityandvapor-proofforsafeoperations).Packerscanbe released,buttrippingshallnotbeginbeforedaylight,unlesspriorapprovalis obtainedfromtheauthorizedofficer..ClosedchamberDSTsmaybe accomplisheddayornight.

ADSTthatflowstothesurfacewithevidenceofhydrocarbonsshall be either reversedoutofthetestingstringundercontrolledsurfaceconditions.Thiswouldinvolveprovidedsomemeans forreversecirculation.

Separationequipmentrequiredfortheanticipatedrecoveryshallbeproperlyinstalledbeforea teststarts.

Allengineswithin100feetofthewellborethatarerequiredto"run"duringthetestshallhavespark arrestersorwatercooledexhausts,

b. Theloggingprogramwillconsistofthefollowing:AGR-SP-DIL-SFL-ML,GR-CALl-FDC/CNL,Sonic(BHC)andMudLogtobe runfromSurfaceCasingto4,604'and a GR-SP-DIL-SFL-ML,GR-CALl-FDC/CNL,Sonic(Dipole),BoreholeImager(CBIL),andMudLogtoberunfrom4,604' toTD.

c. Nocoresare anticipated.

d. Whether the well is completedas a dry hole or as a producer,"WellCompletionandRecompletionReportandLog"(Form3160-4)willbesubmittednotlaterthan30 daysaftercompletionofthewelloraftercompletionofoperationsbeingperformed,inaccordancewith43 CFR 3164. Two copiesof all logs,core descriptions,core analyses,well-testdata,geologicsummaries,sampledescription,andallothersurveysordataobtainedandcompiled


ONSHOREORDERNO.1 FlDENTIAL- TiGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 LeaseNo.UTU-53626491'FNLand 1172'FWLLot1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page9

duringthedrilling,workover,and/orcompletionoperations,willbe filedwithform3160-4.Samples(cuttings,fluids,and/orgases)willbesubmittedwhenrequestedbytheauthorizedofficer(AO).

e. The anticipatedcompletionprogramis as follows:

Perforatezones ofinterestandplaceon production.

8. EXPECTEDBOTTOMHOLEPRESSURE

a. Theexpectedmaximumbottomholepressureis +/- 7000 psi.

b. Nohydrogensulfidegas isanticipated.

c. As perOnshoreOrder No. 6, Ill,A,2.b.,if hydrogen sulfide is presentthe "operatorshallinitiallytesttheH2Sconcentrationof thegas streamfor each wellor productionfacility..."Submitthe resultsof thistestwithin30 days of filingForm3160-4, "WellCompletionorRecompletionReportandLog".

9. OTHERINFORMATIONANDNOTIFICATIONREQUIREMENTS

a. Shouldthewellbe successfullycompletedforproduction,theAOwillbe notifiedwhenthewellisplacedina producingstatus.Suchnotificationwillbesentbytelegramorotherwrittencommunications,not laterthan5 daysfollowingthe date on whichthewellis placedonproduction.

b. Productiondata shallbe reportedto the MMSpursuantto 30 CFR216.5 usingformMMS/3160,

c. Thedateonwhichproductioniscommencedorresumedwillbeconstruedforoilwellsas thedateonwhichliquidhydrocarbonsarefirstsoldorshippedfroma temporarystoragefacility,suchas a testtank,andforwhicha runticketis requiredtobe generatedor, thedate onwhichliquidhydrocarbonsarefirstproducedintoa permanentstoragefacility,whicheverfirstoccurs;and,forgaswellsas thedateonwhichassociatedliquidhydrocarbonsarefirst


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand1172'FWLLet1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page10

or shipped froma temporarystoragefacility,suchas a testtank,andforwhicha runticketis requiredtobe generatedorthedateon whichgas is firstmeasuredthroughpermanentmeteringfacilities,whicheverfirstoccurs.

d. PursuanttoNTL-4A,lesseesoroperatorsareauthorizedtovent/flaregas duringinitialwellevaluationtests,notexceedinga periodof30 days or theproductionof50 MMCFofgas,whicheveroccursfirst.AnapplicationmustbefiledwiththeDistrictEngineerandapprovalreceived,foranyventing/flaringofgas beyondtheinitial30dayorauthorizedtestperiod.

e. Gas producedfromthiswellmaynotbe vented or flaredbeyondan initialauthorizedtestperiodof30 days or 50 MMCFfollowingitscompletion,whicheveroccursfirst,withoutthepriorwrittenapprovalof the AuthorizedOfficer.Shouldgas be ventedor flaredwithoutapprovalbeyondtheauthorizedtestperiod,theoperatormaybedirectedtoshut-inthewelluntilthegas can becapturedortheoperatorshallbe requiredtocompensatethelessorforthatportionofthegas ventedorflaredwithoutapprovalwhichisdeterminedtohavebeenavoidablylost.

f. Aschematicfacilitiesdiagramas requiredby43 CFR3162.7-2,3162.7-3and3162.7-4shallbesubmittedtotheappropriateDistrictOfficewithin30 daysofinstallationorfirstproduction,whicheveroccursfirst. Allsite securityregulationsas specifiedin 43 CFR3162.7 andOnshoreOrderNo.3shall be adheredto.AllproductIlnesenteringandleavinghydrocarbonstoragetankswillbe effectivelysealedinaccordancewith43 CFR3162.7-4.

g. Section 102(b)(3)of the FederalOiland Gas RoyaltyManagementAct of 1982, asimplementedbytheapplicableprovisionsoftheoperatingregulationsatTitle43 CFR3162.4-

1(c),requiresthat"notlaterthanthe5thbusiness dayafter anywellbeginsproductiononwhichroyaltyis due anywhereon a lease site or allocatedto a lease site,or resumesproductionin thecase ofa wellwhichhas beenoffproductionformorethan90 days,theoperatorshallnotifytheauthorizedofficerbyletterorsundrynotice,Forn13160-5,ororallytobe followedby a letterorsundrynotice,ofthedateonwhichsuchproductionhas begunorresumed."

Ifyoufailtocomplywiththisrequirernentinthemannerandtimeallowed,youshallbe liableforacivilpenaltyofupto$10,000perviolationforeachdaysuchviolationcontinues,nottoexceeda maximumof20 days. See Section109(c)(3)ofthe.FederalOiland GasRoyaltyManagementActof1982andtheimplementingregulationsatTitle43CFR


ONŠHOREORDERNO.1 AFlDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491' FNLand 1172' FWLLot1 (NWNW)Section19,T26S- R20E DRILLINGPROGRAMGrandCounty,Utah Page 11

h. Drillingoperationsareplannedtocommence uponapprovalofthisapplication,

i. Itis anticipatedthatthedrillingofthiswellwilltakeapproximately25 days.

J. Nolocationwillbeconstructedormoved,nowellwillbe plugged,andnodrillingorworkoverequipmentwillbe removedfroma wellto be placedina suspendedstatuswithoutpriorapprovalof theAO. Ifoperationsare tobe suspended,priorapprovaloftheAOwillbeobtainedandnotificationgivenbeforeresumptionofoperations.

k. ImmediateReport:Spills,blowouts,fires,leaks,accidents,oranyotherunusualoccurrencesshallbe promptlyreportedinaccordance withtherequirementsofNTL-3Aor its revision.

l. Ifa replacementrigiscontemplatedforcompletionoperations,a "SundryNotice"Form3160-5 tothateffectwillbe filed,forpriorapprovaloftheAO,andallconditionsofthisapprovedplanareapplicableduringalloperationsconductedwiththereplacementrig.

m. PursuanttoOnshoreOrderNo.7,withtheapprovaloftheDistrictEngineer,producedwatermaybe temporarilydisposedofintounlinedpitsfora periodofupto90 days. Duringtheperiodso authorized,an applicationforapprovalofthepermanentdisposalmethod,alongwiththe requiredwateranalysisand otherinformation,mustbe submittedto the DistrictEngineer.

n. Nowellabandonmentoperationswillbe commencedwithoutthepriorapprovaloftheAO.Inthecase ofnewlydrilleddryholesorfailures,andinemergencysituations,oralapprovalwillbe obtainedfromtheSO. A"SubsequentReportofAbandonment"Form3160-5,willbefiledwiththeAOwithin30daysfollowingcompletionofthewellforabandonment.Thisreportwillindicatewhereplugswereplacedandthecurrentstatusof surfacerestoration.Finalabandonmentwillnot be approveduntilthe surface reclamationwork requiredby theapprovedAPDorapprovedabandonmentnoticehas beencompletedtothesatisfactionoftheAOorhisrepresentative,ortheappropriateSurfaceManaging

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FIDELITY EXPLR. & PROD. CO.CANE CREEK NTT A19-2

LOCATED IN GRAND COUNTY, UTARSECTION 19, T26S, R20E, S.L.B.&M.

LOCATION STAKE|

c

PHOTO: VIEW FROM CORNER #5 TO LO N RTH VESTKRLYI

I

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: WESTERLY

UintahEngineering & Land Surveying LOCATIONPROTOS 10 30 07 ruo-ro85 South 200 East Vernal, Utah 84078 M NTS DE VIME

435-789-1017 [email protected] TAKENBY:D.K. DRAWNBY:CC REVISED:


SE OPO "

PROPOSED LOCATION:CANE CREEK UNIT #19-2

R I R19 i20E E S

LEGEND: FIDELITY EXPLR. & PROD. CO.

PROPOSED LOCATION N CANE CREEK UNIT #19-2SECTION 19, T26S, R20E, S.L.B.&M.

491' FNL 1172' FWL

UUÏ¯¯Ïi¯Ëngineering& Land SurnyÏng. TOP

O¯ÜË A PH I c 10 3 07¯

85 South 200 East Vernal, Utah 84078 M A P MONTH DAY YEAR(435) 789-1017 * FAX (435) 789-1813

SCALE:1:100000 DRAWNBY:C.C. REVISED:


R R19 20E E

L

RO2

T26SLEGEND: FIDELITY EXPLR. & PRÖD. CO.

EXlSTING ROAD N CANE CREEK UNIT #19-2----------- PROPOSEDACCFSSROAD SECTION19 T26S R20E S.L.B.&M.-- -------- EXISTING 2-TRACK NEEDS UPGRADED

491' FNL 1172'


PROP SEÐ LOCATION:CANE DREEK UNIT #19-2

SAT

L A

26SLEGEND: FIDELITY EXPLR. & PROD. C1.pf DISPOSAL WELLS gf WKTËR WELLs N CANE CREEK UNIT #19-2

PRODUCING WELLS ABANDONED WELLS SECTION 19, T26S, R20E, S.L.B.&M.extervN wELLS # TEMPORARILY ABANDONED 491' FNL 1172' FWL

Uintah Engineering & Land Surveying TOPOGR A PH I c 10 30 0785 Sou.th 200 East Veirunl, Utah $4078 ÑÍ Á ONT DAY YÉAR

(435) 189-1017 * FAX (435) 789-1813SCALE:1.".=2000' DRAWNBY:CL REVISED:W-0


ONSHOREORDERNO.1 FlDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491' FNLand 1172' FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page1

ONSHOREOIL&GASORDERNO.1ThirteenPointSurfaceUsePlan

Anonsiteinspectionofthesubjectwellwasconductedon Monday,November19,2007 at approximately12:30p.m. Weatherconditionswereclear,coolandwindy.Inattendanceat theonsiteinspectíonwerethefollowingindividuals:

JeffBrown PETINRS BLM- MonticelloBonnieCarson EnvironmentalEngineer SmilingLakeConsultingScottCarson Geologist SmilingLakeConsultingCharlieHarrison DirtContractor HarrisonOilfieldServicesJoe Icenogle DirectorofEnv.Affairs FidelityE &PMikeKeller EnvironmentalEngineer FidelityE&PRandySmith FieldAssistant PermitcoInc.

1. EXISTINGROADS

a. Theproposedwellsiteis locatedapproximately28.5 mileswestofMoab,UT.

b. Directionstothe locationfromMoab,Utahareas follows:

Proceed northweston Highway163for 11.2 miles.Turn leftontoHighway313 andproceedsouthwest14.5 miles.Turnleftat theforkintheroadandproceedsoutheast1.4miles.Turnleftandproceedsoutheast1.2 miles.Turnrightontotheproposedaccessandproceedwest0.3 milesuntílreachingtheproposedlocation.

c. Forlocationofaccessroads,seeMapsA&B.

d. Improvementtotheexistingaccess willnotbe necessarysinceallroadsare maintainedbytheGrandCountyRoad Departmentor UtahStateHighwayDepartment.

e. Allexistingroadswillbe maintainedandkeptingoodrepairduringalldrillingandcompletionoperationsassociatedwiththiswell.

PER IITC0%fP


ONSHOREORDERNO.1 FiDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand117ŽFWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page2

f. ExistingroadsandnewlyconstructedroadsonsurfaceunderthejurisdictionofanySurfaceManagingAgencyshallbe maintainedinaccordancewiththestandardsoftheSMA.

2. NEWOR RECONSTRUCTEDACCESSROADS

a. Therewillbe 0.3 milesofnewaccesstobe constructed.Theroadwillbe constructedinaccordancewithGoldBookstandards,

b. Analternateroadhas alsobeenconsideredand isshownonMapB.

c. Theroadwillbe flat-bladed{minimaldisturbance)witha runningsudaceof14 feet.

d. Themaximumgradeof thenewaccesswillbe approximately2%.

e. Noturnoutswillbe necessary,

f. Noculvertsor lowwatercrossingswillbe installed.

g. Theproposedaccess roadwascenterlineflaggedat thetimeofstaking.

h. Surfacingofthepadandnewaccess maybe necessary,dependingontheweatherconditionsat thetimeofdrilling,

i. Nogatesorcattleguardswillbe necessary.

j. Surfacedisturbanceandvehiculartravelwillbe limitedtotheapprovedlocationandapprovedaccess route. Anyadditionalarea neededwillbe approvedbytheFieldManagerinadvance.

k. Ifat anytimethe facilitieslocatedonpubliclandsauthorizedbythetermsofthelease arenolongerincludedin thelease (duetoa contractionintheunitorotherleaseorunitboundarychange)theBLMwillprocessa changeinauthorizationtotheappropriatestatute. Theauthorizationwillbe subjecttoappropriaterental,orotherfinancialobligationsdeterminedbytheauthorizedofficer.

I. Noroadrightofwaywillbe


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCanaCreekUnit#19-2 Lease No.UTU-5362649f FNLand1172'FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page3

3. LOCATIONOFEXISTINGWELLSWITHINA1-MILERADIUSOFTHEPROPOSEDLOCATION

a. Waterwells- none

b. Injectionwells- none

c. Producingwells- none

d. Drillingwells- none

e. Shutinwells- none

f. . Abandonedwells- two

g. DP¡Holes-none

4. LOCATIONOFEXISTINGANDIORPROPOSEDPRODUCTIONFACILITIES

a. Productionfacilitieswillbe locatedonthewellpad. Allareas notneededforproductionandwork-overoperationswillbe reclaimed.Ifproductionisestablished,a productionfacilitieslayoutwillbe submittedvia sundrynotice.

b. Ifa pumpingunitis installed,itwillbe equipped witha noisereducingmuffler(similartoaDP-60).

c. AIIpermanentstructures(onsiteforsixmonthsor longer)constructedor installed(includingoilwellpumpjacks)willbe painteda flat,nonreflectivecolortomatchthestandardenvironmentalcolors,asdeterminedbytheRockyMountainFive-StateInteragencyCommittee.Allfacilitieswillbe paintedwithinsixmonthsofinstallation.FacilitiesrequiredtocomplywiththeOccupationalSafetyand HealthAct(OSHA)maybeexcluded.Colorswillmatchtheadjacentvegetation.Theactualcolorwillbe specifiedbytheBureauofLandManagement.

d. Allsitesecurityguidelinesidentifiedin43 CFR3162.7-5andOnshoreOilandGasOrderNo.3 shallbe followed:

PEIL


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 LeaseNo.UTU-536264911FNLand1172'FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page4

e. Ifa gas meterrunisconstructed,itwillbe locatedwithin500feetofthewellhead.Thegas flowlinewillbe buriedfromthewellheadtothemeterandwillbe burieddownstreamofthemeteruntilitleavesthepad. Meterrunswillbe housedand/orfenced.Thegas metershallbecalibratedpriortofirstsalesandshallbe calibratedquarterlythereafter,Allgasproductionandmeasurementshallcomplywiththeprovisionof43 CFR3162.7-3,OnshoreOrderNo.5 and AmericanGasAssociation(AGA)ReportNo.3.

f. Thetankbatterywillbe surroundedbya bermofsufficientcapacitytocontain1-1/2timesthestoragecapacityofthelargesttank.Allloadinglinesandvalveswillbe placedinsidethebermsurroundingthetankbattery.Alloilproductionandmeasurementshallconformtotheprovisionsof43CFR3162.7-3andOnshoreOilandGasOrderNo.4.

g. Productionfacilitiesonlocationmayincludea linedorunlinedproducedwaterpitasspecifiedin OnshoreOrderNo.7. Ifwaterisproducedfromthewell,an OnshoreOrderNo.7 applicationmustbe submitted.

h. Anynecessarypitswillbe properlyfencedtopreventanywildlifeentry.

i. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leasewillhavepriorwrittenapprovatfromtheAuthorizedOfficer.

j. Allaccess roads willbe maintainedas necessarytopreventerosionandaccommodateyear-roundtraffic.

k. Theroadwillbe maintainedina safe useablecondition.

5. LOCATIONANDTYPEOFWATERSUPPLY

a. Allwaterneededfordrillingpurposeswillbe obtainedfromthemunicipalwatersupplyinMoab,Utah.

b. Waterwillbe hauledtolocationovertheroadsmarkedon MapsAand B.

c. Nowater wellis tobe drilledon thislease.

d. Thewaterhaulerwillnotifytheappropriateauthoritiespriortoutilizingthemunicipalwater


ONSHOREORDERNO,1 C IDENTIAL-TlGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No. UTU-53626491' FNLand 1172'FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSE PLANGrandCounty,Utah Page5

6. .CONSTRUCTIONMATERIALS

a. Padconstructionmaterialwillbe native(thatfoundinthewellpad).

b. Nativematerialfoundinthepadmayalsobe usedforroadupgrading,

c. Theuse ofmaterialsunderBLMjurisdictionwillconformwith43 CFR3610.2-3.

d. Noconstructionmaterialswillbe removedfromFederalland.

7. METHODSOFHANDLINGWASTE

a. Allfluidscontainedwithinthereservepitwillbe allowedtoevaporateand thepitwillbebackfilled.The reservepitwillbe linedwitha feltlinerunderneatha 12milplasticliner.

b. Burningwillnotbe allowed.Alltrashwillbecontainedina trashcageand itscontentsremovedat theendofdrillingoperationsandhauled toan approveddisposalsight.Trashwillbe hauledas necessary,butnotlaterthanat thecompletionofdrillingoperations.

c. Anysaltsand/orchemicalswhichare anintegralpartofthedrillingsystemwillbedisposedof in thesame manneras thedrillingfluid.

d. Sewagewillbe placedina portablechemicaltoiletorholdingtankanddisposedof inaccordancewithstateandcountyregulations.

e. Theproducedfluids(otherthanwater)willbe producedintoa testtankuntilsuchtirneasconstructionofproductionfacilitiesiscompleted.Anyspillsofoil,gas saltwaterorotherproducedfluidswillbecleanedupandremoved.

8. ANCILLARYFACILITIES

Thereare noairstrips,camps,orotherfacilitiesplannedduringthedrillingoftheproposedwell.

PER


ONSHOREORDERNO,1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand 1172'FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page 6

9. WELLSITELAYOUT

a. See LocationLayoutandTypicalCrossSectionsfororientationofrig,crosssectionofdrillpadand cuts and filis,

b. Sixinches oftopsoil(orthemaximumavailable)willbe salvagedduringconstructionandreservedforuse inreclamation.

c. Anybrushwillbe stockpiledseparatelyfromthetopsoil.

d. Thelocationofmudtanks;reservepit,trashcage;piperacks;livingfacilitiesandsoilstockpilesis shownontheTypicalRigLayout.

e. Theflarepitwillbe locateda minimumof30feetfromtheedgeofthereservepitandaminimurnof100 feetfromthewellhead.

f. Theresemepitwillbefencedonthreesideswith3 strands ofbarbedwireduringdrilling.Thefourthsidewillbefenceduponrigrelease.

g. Anypitscontainingfluidwillbefencedtopreventwildlifeentry.

h. Anyburiedpipelineswillbe seededwiththesameseed rriixturetobe specifiedbytheBLM.

i. Allwells,whetherdrilling,producing,suspended, or abandoned, willbe identifiedinaccordance with43 CFR3162.6

10. PLANSFORSURFACERECLAMAT10N

a. Immediatelyuponcompletionofdrilling,allequipmentthatis not necessary forproductionshallbe removed.

b. Thereservepitwillbe allowedtodryandwillthenbe backfilled.

c. Immediatelyuponwellcompletion,thelocationandsurroundingarea willbe clearedofallunusedtubing,equipment,debris,materials,trashandjunknotrequiredforproduction.

d. Seedingwillbedone inthefallas requiredby theBLM.

PERi


ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491' FNLand 1172' FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page7

e. Theabandonmentmarkerwillbe at leastfourfeetabovegroundlevelandwillbe inscribedwiththefollowing:operatorname,leasenumber,wellnameandsurveyeddescription(township,range, sectionandeitherquarter-quarterorfootages).

f. Atsuchtimeas thewellispluggedandabandoned,theoperatorshallsubmitasubsequentreportofabandonment.

11. SURFACEOWNERSHIP

Access Roads - Allaccess roadsare maintainedbytheBLMor theCountyRoadDepartment.

Wellpad - Thewellpad is locatedon BureauofLandManagement.

12. OTHERINFORMATION

a. AClassIllarcheologicalhas beenconductedbySWCA.Acopyofthisreporthas beensubmittedtotheBLMdirectlybySWCA.

b. Theoperatoris responsibleforinformingallpersonsintheareas whoareassociatedwiththisprojectthattheywillbe subjecttoprosecutionforknowinglydisturbinghistoricor .

archaeologicalsites,orforcollectingartifacts.Ifhistoricorarchaeologicalmaterialsareuncoveredduringconstruction,theoperatoris to immediatelystopworkthatmightfurtherdisturbsuchmaterials,andcontacttheauthorizedofficer(AO).WithinfiveworkingdaystheAOwillinformtheoperatoras to:

-whether thematerialsappeareligiblefortheNationalRegisterofHistoricPlaces;

-the mitigationmeasurestheoperatorwilllikelyhavetoundertakebeforethesitecan beused(assuminginsitupreservationisnotnecessary);and

-a timeframefortheAOtocompleteandexpeditedreviewunder36 CFR800.11toconfirm,throughtheStateHistoricPresentatíonOfficer,thatthefindingsoftheAOarecorrectandthatmitigationis appropriate.


ONSHOREORDERNO.1 FlDENTIAL- TIGHTHOLEFidelityExploration&ProductionCompanyCaneCreekUnit#19-2 Lease No.UTU-53626491'FNLand1172'FWLLot1 (NWNW)Section19,T26S- R20E SURFACEUSEPLANGrandCounty,Utah Page 8

Iftheoperatorwishes,at anytime,torelocateactivitiestoavoidtheexpenseof mitigation. and/orthedelaysassociatedwiththisprocess,theAOwillassumeresponsibilityforwhateverrecordationandstabilizationoftheexposedmaterialsmaybe required.Otherwise,theoperatorwillbe responsibleformitigationcosts. TheAOwillprovidetechnicalandproceduralguidelinesfortheconductofmitigation.UponverificationfromtheAOthatrequiredmitigationhas beencompleted,theoperatorwillthenbe allowedtoresumeconstruction.

c. AIIleaseand/or unitoperationswillbe conducted insucha mannerthatfullcomplianceismadewithallapplicablelaws,regulations,OnshoreOilandGasOrders,theapprovedplanof operations,and any applicableNoticetoLessees. The operatoris fullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbefurnishedthe fieldrepresentativetoinsurecompliance.

d. AcompletecopyoftheapprovedAPDshallbe on locationduringconstructionofthelocationanddrillingactivities.

e. Therewillbe nodeviationfromtheproposeddrillingand/orworkoverprogramwithoutpriorapprovalfromtheAO. Safedrillingandoperatingpracticesmustbe observed.Allwells,whetherdrilling,producing,suspended,orabandonedwillbe identifiedinaccordancewith43 CFR3162.h.

f. "SundryNoticeand ReportonWells"(From3160-5)willbe filedforapprovalforallchangesofplansandother operations inaccordancewith43 CFR3162.3-2.

g. Thispermitwillbe validfora period-oftwoyearsfromthedateofapproval.Anextensionperiodmaybe granted,ifrequested,priortotheexpirationoftheoriginalapprovalperiod.

h. The operatoror hiscontractorshallcontacttheBLMOfficesat435/259-611148 hourspriortoconstructionactivities.

AGENTANDOPERATOR'SCONTACTINFORMATION

Drillina&ComoletionMattersFidelityExploration&ProductionCompany1700Lincoln,Suite2800Denver,CO80202HarveyDunham720/956-5769(Office)303/893-1964


AII

PROPOSED BOP DIAGRAM

13-5/8" 5,000 PSI AnnularBOP

13-5/8" 10, 000 PSI DoubleRam EOP

13-5/8 10 000HCR Valve

4" 10,0003" 10,000 PSIPSI ChokaKill Line

13-5/8 [0,00013-5/8" 10 000 SI Cross

13-5/8" 10,000 PSISingle Ram BOP

13-5/8" 10.000

13-5/6 5,000Casinghead

13-3/8~

-5/8" cAassae

Jeanette 6-20-00


FID L TYExploration&ProductionCompany

5/18/2011

Division of Oil, Gas & Mining1594 W. N. Temple STE 1210Salt Lake City, UT84114-5801

RE:Cane Creek Unit #19-2Lease UTU-53626

491' FNL1172' FWLNWNW Sec 19, T265, R20EGrand County, Utah

Dear Diana:

Please note that this location was staked at a non-standard spacing in accordance with the rules andregulations of the Utah Division of Oil Gas and Mining. This was done for geological considerations.Please also note that Fidelity Exploration and Production Company is the only working interest ownerwithin a 460 foot radius. Therefore, request your administrative approval of this exception to spacing,

If you have any questions please contact Stephanie Masters 307-675-4924.

Thank you,

Ste'phanie MastersO'perations Technician IllFidelity Exploration and Production CompanySheridan, Wyoming 82801307-675-4924

2585 Heartland DriveSheridan, WY 82801

Phone: 307.672.7111Fax:307.673.6850

An MDUResources Group, Inc.


I FIDELITY EXPLR & PROD. CO F'ÏGURE #iLOCATIONLAYOUT FOR

CANECREEK UNIT #19-2SECTFON 19. T26S, R20E, S.L.B.&M.

491' FNL 1172' FWL //

SCALE: 1" - 50'DATE: 11-02-07

Drawn By S.L.

7.1'. 6004

170 Sta. 5¥006

E-0.1' E-3.2' Round CornersE/. 6017.4' EL 6006.7 as Needed

Approx.Toe ofFin Slope

NOTEF/are Pit is tobe located a min.of 100' from theWell Head

P2PETUBS

PE RACKSC-0.6' o

6012.1' i i

C1 '

70' 20¢ Sta. 2+75

F-2. 7C-11.1 C-1.O'- il Et sooa4'(Sim. Pif) - EL 60125uoHT PLANT

RESEPH P/75BGLER(10' Deep)

WATER

HOUSE TANK

Tote eu capocuyWy of Freeboant- 2 150 Bus ±rota RM Votume

El 60

E SH

ApproxTop ofCut Slope

PROPANEC-8.J'

C¯¯¯)8 6017-8' Sta. 0+00 l

II ||| lillllltiC-6.7'El. 6018.2' C-13

E7. 6014.8'

opdosed Access

NOTES:Elev. Ungraded Ground Al Loc. Stoke = §Qf j S'

UINTAH ENGINEERING & LAND SURVEYINGF/N/SHED GRADE ELEV A7 LOC. STAxe - 6011.5 es s.. zoo z..s - r.r==l.ut.« awara• rass>


FIDELITY EXPLR & PROD. CO. FIGURE #2TYPICAL CROSS SECT10NSFORX-Section

scale CANECREEK UNIT #19-2SECTLON19. T26S, R20E, S,L.B,&M.

Y = 50' 491' FNL 1172' FWLDATE: 11-02-07 tilig

Drawn By S.L.

170 200Preconstructi

Fm/shed Grade

STA 5+00

100 200

10 100 70 200

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-------____ CUTI

cur STA 1+25

'000 200'

ilemiminiellaisimiimisiimisiisiassiiraisiin

STA 0+00

NOTE:Topsoil should not beStripped Below FinishedGrade on Substructure Arec

* NOTOF/LL QUAN177YINCLUDES5X FOR COMPAC7/ON

APPROXIMATE YARDAGESCUT(6") Topsoil Stripping = 1500 Cu. Yds. EXCESS MATERIAL = 8,JJO Cu. Yds,Remaining Location = 12,520 Cu. Yds. Topscil & Pit Beckfill - 6,270 Co. Yds.

(1/2 Pit VoL)TOTAL CUT = 16,020 CU.YDS EXCESS UNBALANCE = 2,060 Co. Yds.FILL = 7690 CU.YDS. (After Interim Rehabilltatîon)

UINTAH ENCINEERING & LAND SURVEYlNGas sa zoo noe - vemeu, Utaa store * (485)

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!Cane Creek Unit #13-1 4301950014

Cane Creek Unit 19-2 4301950013

Cane Creek Unit #18-1 4301950012

CANE CREEK U 19-2 4301931590

CANE CREEK U 13-1 4301931588

CANE CREEK U 20-1 4301931587

CANE CREEK U 18-1 4301931585

CANE CREEK 24-1 4301931447

CANE CREEK 30-1 4301931365

KANE SPRINGS FED 19-1A 4301931324

KANE SPRINGS 19-1 4301931319

DEAD HORSE FED 20-1 4301931062

KING OIL COMPANY 1 RUBY 4301920409

BIG FLAT UNIT 3 4301915778

BIG FLAT UNIT 3 4301911579

HOBSON USA 1 4301911336

P A R K R O A D F I E L DP A R K R O A D F I E L D

B I G F L A T F I E L DB I G F L A T F I E L D

C A N E C R E E K U N I TC A N E C R E E K U N I T

19

18

24

13 17

20

3025

7

23

29

14

812

26

11

T 26 S R 20 E

T 26 S R 19 E

Map Produced by Diana MasonMap Prepared:

Well Name: Cane Creek Unit 19-2API Number: 4301950013

Township T2.6 . Section 19Range R2.0 .Meridian: SLBM

F1,600 0 1,600800 Feet

1:15,781

UnitsSTATUS

ACTIVE

EXPLORATORY

GAS STORAGE

NF PP OIL

NF SECONDARY

PI OIL

PP GAS

PP GEOTHERML

PP OIL

SECONDARY

TERMINATED

FieldsSTATUS

Unknown

ABANDONED

ACTIVE

COMBINED

INACTIVE

STORAGE

TERMINATED

Sections

Township

Wells QueryStatus

APD - Aproved Permit

H DRL - Spuded (Drilling Commenced)

4 GIW - Gas Injection

!* GS - Gas Storage

N LA - Location Abandoned

! LOC - New Location

7 OPS - Operation Suspended

ª PA - Plugged Abandoned

* PGW - Producing Gas Well

' POW - Producing Oil Well

O RET - Returned APD

¸ SGW - Shut-in Gas Well

· SOW - Shut-in Oil Well

6 TA - Temp. Abandoned

" TW - Test Well

¸ WDW - Water Disposal

¸ WIW - Water Injection Well

=* WSW - Water Supply Well

Tooele

Millard

Iron

San Juan

Kane

Juab

Uintah

Box Elder

Emery

Garfield

Grand

Utah

Beaver Wayne

Duchesne

Sevier

Summit

Rich

Washington

Carbon

Sanpete

Cache

Piute

Davis

Wasatch

Weber

DaggettSalt Lake

Morgan

Location Map

Operator: FIDELITY E&P COMPANY


*KING 01 COMPANY 1 RUBY430192 09 12 API Number: 4301950013

11 BIG FLAT UNIT 34301911579 Well Name: Cane Creek Unit 19-2

Cane Creek Unit#18-1 Township T2.6 . Range R2.0 . Section 194301950012 Meridian: SLBM

CANE 8E5EKU18 Operator: FIDELITY E&P COMPANY

Map Prepared:Map Produced by Diana Mason

Cane Creek Unit#13-14301950014 units weilscuery

CANE CREEK U 13-1 ST^

NFPPaiL as GasstoragNF sEcaNDARY

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BI FLAT FIELD sso 6^63,6 6

sEcaNDARY u Pow-Producingcasweii

TERrviiNATEDPow-Producingaliweii

FieldsRET-ReturnedAPD

STAlus - - sow-shutincasweii

unknown saw-shutin oliweii

BANoaNED TA Ternp Abando

c NED ta s a

Cane Creek Unit 19-2

BIG FLAT NIT 3 CANE CREEK 24-1 4301950013 veo

43019157 8 4301931447 NANE CREEK U 19-24301931590

CANE CREEK UNIT

BoxElderCacheRich

Location MapWeb

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Sum Da

23 24 19 P A RK RO A D F I ELD 20 alt La

satc Duchesne

CANE CREEK U 20-1Utah Uintah

4301931587 Juab Carbon

SanpeteMillard Emery Grand

1E S1PRINGS FED 19-1ADEAD HORSE FED 20-1

PutSevier

Wayne4301931062

KANESPRINGS19-14301931319

iron Garfeld

CANE CREEK 30-1

Washington Kane

San Juan

4301931385HOBSONUSA14301911336

26 25 30 29 N1600 800 0 1,600Feet

United States Department of the Interior BUREAU OF LAND MANAGEMENT Utah State Office P.O. Box 45155 Salt Lake City, Utah 84145-0155 IN REPLY REFER TO: 3160 (UT-922) May 20, 2011 Memorandum To: Assistant Field Office Manager Resources, Moab District From: Michael Coulthard, Petroleum Engineer Subject: 2011 Plan of Development Cane Creek Unit,

Grand and San Juan Counties, Utah. Pursuant to email between Diana Whitney, Division of Oil, Gas and Mining, and Mickey Coulthard, Utah State Office, Bureau of Land Management, the following wells are planned for calendar year 2011 within the Cane Creek Unit, Grand and San Juan Counties, Utah. API # WELL NAME LOCATION (Proposed PZ Cane Creek Shale) 43-019-50013 Cane Creek Unit 19-2 Sec 19 T26S R20E 0491 FNL 1172 FWL 43-019-50014 Cane Creek Unit 13-1 Sec 13 T26S R19E 2071 FNL 0880 FEL These wells are currently pending approval by the BLM. The wells are currently being permitted under API number 43-019-31590 and 43-019-31588 (please refer to the 2008 Plan of Development for more details). This office has no objection to permitting the well at this time. bcc: File – Cane Creek Unit Division of Oil Gas and Mining Central Files Agr. Sec. Chron Fluid Chron MCoulthard:mc:5-20-11

Division of Oil Gas and Mining

Michael L. CoulthardDigitally signed by Michael L. Coulthard DN: cn=Michael L. Coulthard, o=Bureau of Land Management, ou=Branch of Minerals, [email protected], c=US Date: 2011.05.20 14:41:57 -06'00'


United States Department of the Interior

BUREAU OF LAND MANAGEMENTUtah State Office

P.O. Box 45155Salt Lake City, Utah 84145-0155

IN FŒPLY FŒFER TO:3160(UT-922)

May 20, 2011

Memorandum

To: Assistant Field Office Manager Resources, Moab District

From: Michael Coulthard, Petroleum Engineer

Subject: 2011 Plan of Development Cane Creek Unit,Grand and San Juan Counties, Utah.

Pursuant to email between Diana Whitney, Division of Oil, Gas andMining, and Mickey Coulthard, Utah State Office, Bureau of LandManagement, the following wells are planned for calendar year2011 within the Cane Creek Unit, Grand and San Juan Counties,Utah.

API# WELLNAME LOCATION

(Proposed PZ Cane Creek Shale)

43-019-50013 Cane Creek Unit 19-2 Sec 19 T26S R20E 0491 FNL 1172 FWL43-019-50014 Cane Creek Unit 13-1 Sec 13 T26S R19E 2071 FNL 0880 FEL

These wells are currently pending approval by the BLM. The wellsare currently being permitted under API number 43-019-31590 and43-019-31588 (please refer to the 2008 Plan of Development formore details).

This office has no objection to permitting the well at this time.

DigitallysignedbyMichaelLCoulthard

h | IthdMi Lae OU af DN:cn=MichaelLCoulthard,o=BureauofLandManagement,C .ou=BranchofMinerals,[email protected],c=USDate:2011.05.2014:41:57-0600

bcc: File - Cane Creek UnitDivision of Oil Gas and MiningCentral FilesAgr. Sec. ChronFluid Chron

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 5/17/2011 API NO. ASSIGNED: 43019500130000

WELL NAME: Cane Creek Unit 19-2

OPERATOR: FIDELITY E&P COMPANY (N3155) PHONE NUMBER: 307 675-4924

CONTACT: Stephanie Masters

PROPOSED LOCATION: NWNW 19 260S 200E Permit Tech Review:

SURFACE: 0491 FNL 1172 FWL Engineering Review:

BOTTOM: 0491 FNL 1172 FWL Geology Review:

COUNTY: GRAND

LATITUDE: 38.53275 LONGITUDE: -109.75932

UTM SURF EASTINGS: 608140.00 NORTHINGS: 4265449.00

FIELD NAME: UNDESIGNATED

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU53626 PROPOSED PRODUCING FORMATION(S): CANE CREEK

SURFACE OWNER: 1 - Federal COALBED METHANE: NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

PLAT R649-2-3.

Bond: FEDERAL - CO1395 Unit: CANE CREEK

Potash R649-3-2. General

Oil Shale 190-5

Oil Shale 190-3 R649-3-3. Exception

Oil Shale 190-13 Drilling Unit

Water Permit: Municipal Board Cause No: R649-3-3

RDCC Review: Effective Date:

Fee Surface Agreement Siting:

Intent to Commingle R649-3-11. Directional Drill

Commingling Approved

Comments: Presite Completed

Stipulations: 1 - Exception Location - bhill 4 - Federal Approval - dmason 23 - Spacing - dmason


WORKSHEETAPPLICATION FOR PERMIT TO DRILL

I

I

APD RECEIVED: 5/17/2011 API NO. ASSIGNED: 43019500130000

WELL NAME: Cane Creek Unit 19-2

OPERATOR: FIDELITY E&P COMPANY (N3155) PHONE NUMBER: 307 675-4924

CONTACT: Stephanie Masters

PROPOSED LOCATION: NWNW 19 260S 200E Permit Tech Review:

SURFACE: 0491 FNL 1172 FWL Engineering Review:

BOTTOM: 0491 FNL 1172 FWL Geology Review:

COUNTY: GRAND

LATITUDE: 38.53275 LONGITUDE: -109.75932

UTM SURF EASTINGS: 608140.00 NORTHINGS: 4265449.00

FIELD NAME: UNDESIGNATED

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU53626 PROPOSED PRODUCING FORMATION(S): CANE CREEK

SURFACE OWNER: 1 - Federal COALBED METHANE: NO

I

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

PLAT R649-2-3.

Bond: FEDERAL - CO1395 Unit: CANE CREEK

Potash R649-3-2. General

Oil Shale 190-5

Oil Shale 190-3 R649-3-3. Exception

Oil Shale 190-13 Drilling Unit

Water Permit: Municipal Board Cause No: R649-3-3

RDCC Review: Effective Date:

Fee Surface Agreement Siting:

Intent to Commingle R649-3-11. Directional Drill

Commingling Approved

I

Comments: Presite Completed

Stipulations: 1 - Exception Location - bhill4 - Federal Approval - dmason23 - Spacing -

Permit To Drill

******************Well Name: Cane Creek Unit 19-2


Lease Number: UTU53626

Surface Owner: FEDERAL

Approval Date: 5/26/2011

Issued to:FIDELITY E&P COMPANY, 2585 Heartland Drive, Sheridan, WY 82801

Authority:Pursuant to Utah Code Ann. §40-6-1 et seq., and Utah Administrative Code R649-3-1 et seq., theUtah Division of Oil, Gas and Mining issues conditions of approval, and permit to drill the listedwell. This permit is issued in accordance with the requirements of R649-3-3. The expected producingformation or pool is the CANE CREEK Formation(s), completion into any other zones will requirefiling a Sundry Notice (Form 9). Completion and commingling of more than one pool will requireapproval in accordance with R649-3-22.

Duration:This approval shall expire one year from the above date unless substantial and continuous operationis underway, or a request for extension is made prior to the expiration date

Exception Location:Appropriate information has been submitted to DOGM and administrative approval of the requestedexception location is hereby granted.

General:Compliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and Gas ConservationGeneral Rules, and the applicable terms and provisions of the approved Application for permit to drill.

Conditions of Approval:State approval of this well does not supercede the required federal approval, which must be obtainedprior to drilling.

This proposed well is located in an area for which drilling units (well spacing patterns) have not beenestablished through an order of the Board of Oil, Gas and Mining (the “Board”). In order to avoid thepossibility of waste or injury to correlative rights, the operator is requested, once the well has beendrilled, completed, and has produced, to analyze geological and engineering data generatedtherefrom, as well as any similar data from surrounding areas if available. As soon as is practicableafter completion of its analysis, and if the analysis suggests an area larger than the quarter-quartersection upon which the well is located is being drained, the operator is requested to seek anappropriate order from the Board establishing drilling and spacing units in conformance with suchanalysis by filing a Request for Agency Action with the Board.

API Well No: 43019500130000API Well No: 43019500130000

State of UtahDEPARTMENT OF NATURAL RESOURCES

-/ MICHAEL R. STYLER

GAR . H BE RTExoutim Drotor

comrmr Division of Oil, Gas and MiningGREGORY S. BELL JOHN R. BAZALieuterant Gowrær Busion Director

Permit To Drillkkkkkkkkkkkkkkkkkk

Well Name: Cane Creek Unit 19-2API Well Number: 43019500130000

Lease Number: UTU53626Surface Owner: FEDERALApproval Date: 5/26/2011

Issued to:FIDELITY E&P COMPANY, 2585 Heartland Drive, Sheridan, WY 82801

Authority:Pursuant to Utah Code Ann. §40-6-1et seq., and Utah Administrative Code R649-3-1 et seq., theUtah Division of Oil, Gas and Mining issues conditions of approval, and permit to drill the listedwell. This permit is issued in accordance with the requirements of R649-3-3. The expected producingformation or pool is the CANE CREEK Formation(s), completion into any other zones will requirefiling a Sundry Notice (Form 9). Completion and commingling of more than one pool will requireapproval in accordance with R649-3-22.

Duration:This approval shall expire one year from the above date unless substantial and continuous operationis underway, or a request for extension is made prior to the expiration date

Exception Location:Appropriate information has been submitted to DOGM and administrative approval of the requestedexception location is hereby granted.

General:Compliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and Gas ConservationGeneral Rules, and the applicable terms and provisions of the approved Application for permit to drill.

Conditions of Approval:State approval of this well does not supercede the required federal approval, which must be obtainedprior to drilling.

This proposed well is located in an area for which drilling units (well spacing patterns) have not beenestablished through an order of the Board of Oil, Gas and Mining (the "Board"). In order to avoid thepossibility of waste or injury to correlative rights, the operator is requested, once the well has beendrilled, completed, and has produced, to analyze geological and engineering data generatedtherefrom, as well as any similar data from surrounding areas if available. As soon as is practicableafter completion of its analysis, and if the analysis suggests an area larger than the quarter-quartersection upon which the well is located is being drained, the operator is requested to seek anappropriate order from the Board establishing drilling and spacing units in conformance with suchanalysis by filing a Request for Agency Action with the

Notification Requirements:The operator is required to notify the Division of Oil, Gas and Mining of the following actions duringdrilling of this well: • Within 24 hours following the spudding of the well – contact Carol Daniels at 801-538-5284 (please leave a voicemail message if not available) OR submit an electronic sundry notice (pre-registration required) via the Utah Oil & Gas website at http://oilgas.ogm.utah.gov

Reporting Requirements:All reports, forms and submittals as required by the Utah Oil and Gas Conservation General Ruleswill be promptly filed with the Division of Oil, Gas and Mining, including but not limited to: • Entity Action Form (Form 6) – due within 5 days of spudding the well • Monthly Status Report (Form 9) – due by 5th day of the following calendar month • Requests to Change Plans (Form 9) – due prior to implementation • Written Notice of Emergency Changes (Form 9) – due within 5 days • Notice of Operations Suspension or Resumption (Form 9) – due prior to implementation • Report of Water Encountered (Form 7) – due within 30 days after completion • Well Completion Report (Form 8) – due within 30 days after completion or plugging

Approved By:

For John RogersAssociate Director, Oil & Gas

API Well No: 43019500130000API Well No: 43019500130000

Notification Requirements:The operator is required to notify the Division of Oil, Gas and Mining of the following actions duringdrilling of this well:

• Within 24 hours following the spudding of the well- contact Carol Daniels at 801-538-5284(please leave a voicemail message if not available)ORsubmit an electronic sundry notice (pre-registration required) via the Utah Oil & Gas websiteat http://oilgas.ogm.utah.gov

Reporting Requirements:All reports, forms and submittals as required by the Utah Oil and Gas Conservation General Ruleswill be promptly filed with the Division of Oil, Gas and Mining, including but not limited to:

• Entity Action Form (Form 6) - due within 5 days of spudding the well• Monthly Status Report (Form 9) - due by 5th day of the following calendar month• Requests to Change Plans (Form 9) - due prior to implementation• Written Notice of Emergency Changes (Form 9) - due within 5 days• Notice of Operations Suspension or Resumption (Form 9) - due prior to implementation• Report of Water Encountered (Form 7) - due within 30 days after completion• Well Completion Report (Form 8) - due within 30 days after completion or plugging

Approved By:

For John RogersAssociate Director, Oil &

State of Utah, DEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLERGARY R. IfERBERT Executive Director

Govereur Division of Oil, Gas and MiningGREG BELL JOHN R. BAZA

Lieutenant Governor Division Director

July 27, 2012

Fidelity E&P Company2585 Heartland DriveSheridan, WY 82801

Re: APD Rescinded - Cane Creek U 19-2, Sec. 19, T. 26S, R. 20E,Grand County, Utah API No. 43-019-50013

Ladies and Gentlemen:

The Application for Permit to Drill (APD) for the subject well wasapproved by the Division of Oil, Gas and Mining (Division) on May 26, 2011. Nodrilling activity at this location has been reported to the division. Therefore,approval to drill the well is hereby rescinded, effective July 27, 2012.

A new APD must be filed with this office for approval prior to thecommencement of any future work on the subject location.

If any previously unreported operations have been performed on this welllocation, it is imperative that you notify the Division immediately.

Sincerely,

Di na MasonEnvironmental Scientist

ec: Well FileBureau of Land Management, Moab

U FAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile (801) 359-3940 • TTY (801) 538-7458 . www.ogm.utah.gov en r as a

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f Well - Utah · WELL NAME and NUMBER ... SURFACE OWNERSHIP FEDERAL INDIAN STATE FEE 13. NAME OF SURFACE OWNER (if box ... When testing the killlinevalve(s)