Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - CONDUCTOR

CONDUCTOR CASING DESIGN: SIZE: CONDITIONS: TVD: BACKUPGAS GRADIENTMUD WEIGHTSAFETY FACTORCOLLAPSE DESIGN: INJECTION PRESSGAS HYDROSTATIC102 102 X X 0.052 0.115 X 10.0 = = = 53 PSI 12 PSI 41 PSI 16" Measured Depth: 102 FEET FRACTURE WT12.4 PPG EMW BURST MUD WEIGHT: MW + SF = 13.4 PPG COLLAPSE MUD WEIGHT: MW + SF = 10.0 PPG

19-Aug-08

102 0.115 0.115 9.0 1.0

FEET PSI/FT PSI/FT PPG PPG

COLLAPSE BURST DESIGN INJECTION PRESSGAS HYDROSTATIC102 102 X X 0.052 0.115 X 13.4 BURST RECOMMENDED CASING: MD TVD FEET FEET SIZE WT/FT GRADE CONN. BURST SF 102 102 16" 65.00 H-40 XLF 1,640 27.64

= = =

71 PSI 12 PSI 59 PSI

COLLAPSE

630

SF 15.25

TENSION

439,000

SF 66.21

102 102 CORRECT: TENSION DESIGN LOADLENGHT OF PIPELENGHT OF PIPELENGHT OF PIPE-

YES = 1, N0 = 0 METERS -

0 FEET -

102 FEET 0 FEET 0 FEET

WT OF PIPE WT OF PIPE WT OF PIPE

65 LBS/FT 0 LBS/FT 0 LBS/FT LOAD =

6,630 LBS

MAXIMUM LOAD CASING CASING DESIGN SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS = MEETS THE TENSION DESIGN: 1

5,719 LBS 10,294 LBS 110,294 LBS YES

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - SURFACE SURFACE CASING DESIGN: CONDITIONS: TVD: BACKUPGAS GRADIENTMUD WEIGHTSAFETY FACTORCOLLAPSE DESIGN: INJECTION PRESSGAS HYDROSTATIC2200 2200 X X 0.052 0.115 X 10.5 = = = 1201 PSI 253 PSI 948 PSI
SIZE:

19-Aug-08

9-5/8"

Surface Casing Measured Depth: 2200 FEET FRACTURE WT13.6 PPG EMW BURST MUD WEIGHT: MW + SF = 14.6 PPG COLLAPSE MUD WEIGHT: MW + SF = 10.5 PPG

2200 0.115 0.115 9.5 1.0

FEET PSI/FT PSI/FT PPG PPG

COLLAPSE BURST DESIGN INJECTION PRESSGAS HYDROSTATIC2200 2200 X X 0.052 0.115 X 14.6 BURST RECOMMENDED CASING: MD TVD FEET FEET SIZE WT/FT GRADE CONN. BURST 2200 2200 9-5/8" 40.00 J-55 ST&C 3,950

= = =

1670 PSI 253 PSI 1417 PSI

SF 2.79

COLLAPSE

2,570

SF 2.71

TENSION

452,000

SF 5.14

2200 2200 CORRECT: TENSION DESIGN LOADLENGHT OF PIPELENGHT OF PIPELENGHT OF PIPE-

YES = 1, N0 = 0 METERS -

0 FEET -

2200 FEET 0 FEET 0 FEET

WT OF PIPE WT OF PIPE WT OF PIPE

40 LBS/FT 0 LBS/FT 0 LBS/FT LOAD =

88,000 LBS

MAXIMUM LOAD CASING CASING DESIGN SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS= MEETS THE TENSION DESIGN: 1

75,237 LBS 135,426 LBS 235,426 LBS YES

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - BURST CASING SIZE: 7" CONDITIONS: CASING SHOE DEPTH = Z = ---------------------------TVD 11620 FEET FRACTURE WT. AT CSG SHOE DEPTH = B = -----------17.5 PPG EMW MUD COLUMN = X = -----------------------------------X FEET GAS COLUMN = Y = ------------------------------------Y FEET MAXIMUN SURFACE PRESSURE = A = ------------10000 PSI MUD WEIGHT AT NEXT CASING SEAT = C = ----------15.5 PPG MUD WEIGHT CASING SET IN =--------------------------------11.2 PPG FORMULAS: X+Y=Z A+(X*.052*C)+(Y*.115)=(B+1.0)*.052*Z CALCULATIONS: X+Y= Y= 10000 0.806 0.691 X * Y * A = 0.806 0.115 10000
INJECTION PRESSURE:

19-Aug-08

WATER D. AIR GAP FRAC/SHOE FRAC O/S

0 22 17.5 17.5

17.5 +1.0)*

11620 *.052=

11178 PSI

11620 11620 - X + 0.806 X + X + 1336 + X = -158 X = -228 FEET

0.115 Y 0.115 X

= =

11178 1178

INTERFACE PRESSURE: SURFACE PRESSURE + MUD COLUMN PRESSURE 10000 + ( -228 * 0.806 ) = 9816 PSI

CHECK: INJECTION PRESSURE - INTERFACE PRESSURE SHOULD EQUAL .115 PSI/FT

11178

9816

1363

/ (

11620 0.465 0 -106 5403

-228 ) =
GRAPH INFORMATION

0.115

PSI

SALT WATER BACKUP PSI / FT = BACKUP PRESSURE AT SURFACE = BACKUP PRESSURE AT INTERFACE PT. = BACKUP PRESSURE AT INJECTION PT. = RESULTANT LINE: RESULTANT PRESSURE AT SURFACE = RESULTANT PRESSURE AT INTERFACE PT.= RESULTANT PRESSURE AT INJECTION PT.= DESIGN LINE: DESIGN PRESSURE AT SURFACE = DESIGN PRESSURE AT INTERFACE PT. = DESIGN PRESSURE AT INJECTION PT. =

PRESS DEPTH LOAD BK/UP

RESULTANT

10000 9922 5775

DESIGN

0 0 10000 0 10000 11000

-228 9816 -106 9922 10914

11178 11620 11178 5403 5775 6353

11000 10914 6353

Production casing

19-Aug-08

CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - COLLAPSE SIZE: 7" DESIGN USES A SALTWATER BACKUP. 0 11,620 0.465 0.115 11.2 1.0 METERS FEET PSI/FT PSI/FT PPG PPG MEASURED DEPTH: 11,620 FEET FRACTURE WT17.5 PPG EMW BURST MUD WEIGHT: MW + SF = 18.5 PPG COLLAPSE MUD WEIGHT: MW + SF = 12.2 PPG

CONDITIONS: TVD BACKUPGAS GRADIENTMUD WEIGHTSAFETY FACTOR-

CALCULATIONS: INJECTION PRESS11620 SALTWATER BACKUP 1 - 1620 X X 0.052 0.465 X 12.2 = = = 7372 PSI 5403 PSI 1968 PSI

COLLAPSE RECOMMENDED CASING: MD TVD FEET FEET SIZE WT/FT GRADE CONN. BURST
11620

SF 1.13

COLLAPSE

SF 4.333

TENSION

SF 2.37

11620

7"

29.0

P-110

LT&C

11,220

8,530

797,000 1

11620 11620 CORRECT:

YES = 1, N0 = 0 METERS -

0 FEET -

CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - TENSION LOADLENGHT OF PIPELENGHT OF PIPELENGHT OF PIPE0 FEET 11620 FEET FEET WT OF PIPE WT OF PIPE WT OF PIPE 0.0 LBS/FT 29.0 LBS/FT LBS/FT LOAD =

336,980 LBS

MAXIMUM LOAD CASING DESIGN TENSION SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS= MEETS THE TENSION DESIGN: 1

279,359 LBS 502,846 LBS 602,846 LBS YES

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - BURST CASING SIZE: 7" PROTECTION STRING

19-Aug-08

CONDITIONS: Measured Depth: CASING SHOE DEPTH = Z = --------------------------11,620 FEET WATER D. FRACTURE WT. AT CSG SHOE DEPTH = B = -----------17.5 PPG EMW AIR GAP MUD COLUMN = X = -----------------------------------X FEET FRAC/SHOE GAS COLUMN = Y = ------------------------------------Y FEET FRAC O/S MAXIMUN SURFACE PRESSURE = A = ------------10000 PSI MUD WEIGHT AT NEXT CASING SEAT = C = ----------15.5 PPG MUD WEIGHT CASING SET IN =--------------------------------11.2 PPG FORMULAS: X+Y=Z A+(X*.052*C)+(Y*.115)=(B+1.0)*.052*Z CALCULATIONS: X+Y= Y= 10000 0.806 0.691 X * Y * A = 0.806 0.115 10000
INJECTION PRESSURE:

11,620

FEET

0 22 17.5 17.5

17.5 +1.0)*

11620 *.052=

11178 PSI

11620 11620 - X + 0.806 X + X + 1336 + X = -158 X = -228 FEET

0.115 Y 0.115 X

= =

11178 1178

RESULTS: INTERFACE PRESSURE: SURFACE PRESSURE + MUD COLUMN PRESSURE 10000 + ( -228 * 0.806 ) = 9816 PSI

CHECK: INJECTION PRESSURE - INTERFACE PRESSURE SHOULD EQUAL .115 PSI/FT 11178 9816 = 1363 / ( 11620 0.465 0 -106 5403 -228 ) =
GRAPH INFORMATION PRESS DEPTH LOAD BK/UP
RESULTANT

0.115

PSI

SALT WATER BACKUP PSI / FT = BACKUP PRESSURE AT SURFACE = BACKUP PRESSURE AT INTERFACE PT. = BACKUP PRESSURE AT INJECTION PT. = RESULTANT LINE: RESULTANT PRESSURE AT SURFACE = RESULTANT PRESSURE AT INTERFACE PT.= RESULTANT PRESSURE AT INJECTION PT.= DESIGN LINE: DESIGN PRESSURE AT SURFACE = DESIGN PRESSURE AT INTERFACE PT. = DESIGN PRESSURE AT INJECTION PT. =

10000 9922 5775

DESIGN

0 0 10000 0 10000 11000

-228 9816 -106 9922 10914

11178 11620 11178 5403 5775 6353

11000 10914 6353

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - COLLAPSE SIZE: 7" DESIGN USES A SALTWATER BACKUP. 0 11620 0.465 0.115 11.2 1.0 METERS FEET PSI/FT PSI/FT PPG PPG

08/19/08

CONDITIONS: DEPTHBACKUPGAS GRADIENTMUD WEIGHTSAFETY FACTOR-

FRACTURE WT17.5 PPG EMW BURST MUD WEIGHT: MW + SF = 18.5 PPG COLLAPSE MUD WEIGHT: MW + SF = 12.2 PPG

CALCULATIONS: INJECTION PRESSGAS BACKUP 11620 11620 X X 0.052 0.115 X 12.2 = = = 7372 PSI 1336 PSI 6035 PSI

COLLAPSE

RECOMMENDED CASING: MD DEPTH FEET SIZE WT/FT GRADE CONN. BURST

TVD

SF 1.41

COLLAPSE

SF 1.41

TENSION

SF 2.37
FULL

11620 11620

7"

29.0

P-110

LT&C

11,220

8,530

797,000 1

11620 11620 CORRECT:

YES = 1, N0 = 0 METERS -

0 FEET -

CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - TENSION LOADLENGHT OF PIPELENGHT OF PIPELENGHT OF PIPE0 FEET 11620 FEET 0 FEET WT OF PIPE WT OF PIPE WT OF PIPE 0.00 LBS/FT 29.00 LBS/FT 0 LBS/FT LOAD =

336,980 LBS

MAXIMUM LOAD CASING DESIGN TENSION SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS= MEETS THE TENSION DESIGN:

279,359 LBS 502,846 LBS 602,846 LBS YES

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - PRODUCTION CASING DESIGN: SIZE: CONDITIONS: DEPTH11620 BHP DEPTH 11900 SALTWATER BACK UP -0.465 GAS BACK UP 0.115 BURST BACKUP 0.115 COLLAPSE BACK UP - 0.115 TD MUD WEIGHT15.5 CASING DEPTH MUD WT. 11.2 BURST SAFETY FACTOR 1.250 COLLAPSE SAFETY FACTOR - 1.125 COLLAPSE DESIGN: INJECTION PRESS11620 X BACK UP GAS 11620 X RESULTANT 6767 SAFETY FACTOR 1.125 x 7" FEET FEET PSI/FT PSI/FT PSI/FT PSI/FT PPG PPG PPG PPG 0.052 0.115 1336 5431 X Drilling / Production String PIPE/

19-Aug-08

LENGTH 11620 FEET BURST EMW ( .4 PPG LESS THAN MUD WEIGHT): EMW - .4 PPG =

15.1 PPG

COLLAPSE MUD WEIGHT: MW = 11.2 PPG

11.2

COLLAPSE BURST DESIGN INJECTION PRESSBACK UP GAS RESULTANT SAFETY FACTOR -

= = = = =

6767 1336 5431 6110 6110

PSI PSI PSI PSI PSI

11900 11900 9344 1.250

X X x

0.052 0.115 1369 7975

15.1

= =
= =

BURST RECOMMENDED CASING: MD DEPTH FEET SIZE WT/FT GRADE CONN. BURST
TVD

9344 1369 7975 9969 9969

PSI PSI PSI

PSI

PSI

SF

COLLAPSE

SF

TENSION

SF

TYPE

11620 11620

7"

29.00

P-110

LT&C

11,220

1.41

8,530

1.571

797,000 1

2.37

FULL

11620 11620 CORRECT: TENSION DESIGN LOADFULL STRING: LENGHT OF PIPELENGHT OF PIPELENGHT OF PIPELINER: LENGHT OF PIPE-

YES = 1, N0 = 0 METERS -

0 FEET -

0 FEET 0 FEET 11620 FEET

WT OF PIPE WT OF PIPE WT OF PIPE

0.00 LBS/FT 0.00 LBS/FT 29.00 LBS/FT LOAD = LBS/FT LOAD =

336,980 LBS LBS 257,237 LBS 463,026 LBS 563,026 LBS YES

FEET

WT OF PIPE

MAXIMUM LOAD CASING CASING DESIGN SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS= MEETS THE TENSION DESIGN: 1

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - PRODUCTION CASING DESIGN: SIZE: CONDITIONS: MD: 18,000 DEPTH18,000 BHP DEPTH 18,000 SALTWATER BACK UP -0.465 GAS BACK UP 0.115 BURST BACKUP 0.115 COLLAPSE BACK UP - 0.465 TD MUD WEIGHT18.0 CASING DEPTH MUD WT. 18.0 BURST SAFETY FACTOR 1.250 COLLAPSE SAFETY FACTOR - 1.125 COLLAPSE DESIGN: INJECTION PRESS18000 x BACK UP GAS 18000 x RESULTANT 16848 SAFETY FACTOR 1.125 x

19-Aug-08

5" Production Liner FEET MD FEET TVD PIPE/ FEET MD LENGTH 18,000 FEET PSI/FT BURST EMW ( .4 PPG LESS THAN MUD WEIGHT): PSI/FT PSI/FT EMW - .4 PPG = 17.6 PPG PSI/FT PPG COLLAPSE MUD WEIGHT: PPG MW = 18.0 PPG

0.052 0.115 2070 14778

18.0

COLLAPSE BURST DESIGN INJECTION PRESSBACK UP GAS RESULTANT SAFETY FACTOR -

= = = = =

16848 2070 14778 16625 16625

PSI PSI PSI PSI PSI

18000 18000 16474 1.250

x x x

0.052 0.115 2070 14404

17.6

= =
= =

BURST RECOMMENDED CASING: TVD MD - LENGTH FEET FEET SIZE WT/FT GRADE CONN. BURST

16474 2070 14404 18005 18005

PSI PSI PSI

PSI

PSI

SF

COLLAPSE

SF

TENSION

SF

TYPE

18000

18000

5"

23.20

P-110 Vam Top 18,400

1.28

19,020

1.29

747,000 1

1.79

Prod

18000 18000 CORRECT: TENSION DESIGN LOADFULL STRING: LENGHT OF PIPELENGHT OF PIPELENGHT OF PIPE-

YES = 1, N0 = 0 METERS -

0 FEET -

0 FEET 0 FEET 18000 FEET

WT OF PIPE WT OF PIPE WT OF PIPE

0.00 LBS/FT 0.00 LBS/FT 23.20 LBS/FT LOAD = 23.20 LBS/FT LOAD =

0 0 417600 417600 417,600 LBS 302,840 LBS 545,111 LBS 645,111 LBS yes

FULL: LENGHT OF PIPE-

18000 FEET

WT OF PIPE

MAXIMUM LOAD CASING CASING DESIGN SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.8: X 1.8= MAX LOAD SF PLUS AN ADDITIONAL 100,000#: + 100,000 LBS= MEETS THE TENSION DESIGN: 1

Production casing CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE CASING DESIGN BASED ON MAXIMUM SURFACE PRESSURE - PRODUCTION CASING DESIGN: SIZE: CONDITIONS: MD: 11,300 DEPTH11,300 BHP DEPTH 11,900 SALTWATER BACK UP -0.465 GAS BACK UP 0.115 BURST BACKUP 0.115 COLLAPSE BACK UP - 0.115 TD MUD WEIGHT15.5 CASING DEPTH MUD WT. 15.5 BURST SAFETY FACTOR 1.250 COLLAPSE SAFETY FACTOR - 1.125 COLLAPSE DESIGN: INJECTION PRESS11300 x BACK UP GAS - 11300 x RESULTANT 9108 SAFETY FACTOR 1.125 x

19-Aug-08

2-7/8" Production Tubing FEET MD FEET PIPE/ FEET MD LENGTH 11,300 FEET PSI/FT BURST EMW ( .4 PPG LESS THAN MUD WEIGHT): PSI/FT PSI/FT EMW - .4 PPG = 15.1 PPG PSI/FT PPG COLLAPSE MUD WEIGHT: PPG MW = 15.5 PPG

0.052 0.115 1300 7808

15.5

COLLAPSE BURST DESIGN INJECTION PRESSBACK UP GAS RESULTANT SAFETY FACTOR -

= = = = =

9108 1300 7808 8784 8784

PSI PSI PSI PSI PSI

11900 11900 9344 1.250

x x x

0.052 0.115 1369 7975

15.1

= =
= =

BURST RECOMMENDED CASING: TVD MD FEET FEET SIZE WT/FT GRADE CONN. BURST

9344 1369 7975 9969 9969

PSI PSI PSI

PSI

PSI

SF

COLLAPSE

SF

TENSION

SF

TYPE

11300 11300 2-7/8"

6.40

L-80

EUE

10,570

1.33

11,170

1.431

145,000 1

2.00 FULL

11300 11300 CORRECT: TENSION DESIGN LOADFULL STRING: LENGHT OF PIPELENGHT OF PIPELENGHT OF PIPETUBING: LENGHT OF PIPE-

YES = 1, N0 = 0 METERS -

0 FEET -

FEET FEET FEET

WT OF PIPE WT OF PIPE WT OF PIPE

LBS/FT LBS/FT LBS/FT LOAD = 6.40 LBS/FT LOAD =

0 72,320 LBS 55,206 LBS 88,330 LBS 138,330 LBS YES

11300 FEET

WT OF PIPE

MAXIMUM LOAD CASING CASING DESIGN SAFETY FACTORS: BUOYANT WEIGHT: ((65.5 - MUD WT) / 65.5) x LOAD = MAXIMUM LOAD SAFETY FACTORS x 1.6: X 1.6= MAX LOAD SF PLUS AN ADDITIONAL 50,000#: + 50,000 LBS= MEETS THE TENSION DESIGN: 1

GRAPH

MISSION RESOURCES CORPORATION ARGO PROSPECT

35000

30000 DESIGN 11620

25000

-228

PRESSURE

20000

11620 RESULTANT -228

15000

11620

10000

BK/UP

-228

5000

LOAD

-228

11620

0 0 -228 DEPTH
LOAD LINE BACKUP LINE RESULTANT LINE DESIGN LINE

11620

Page 10