APPROACH OPERATING LLC. RIG: Latshaw rig #22 KB: 28

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MORNING DRILLING REPORT Date: 8/18/2013 Day: 1 Present Operation: waiting on daylight to finish rig move Depth: Footage: Rot. Hrs.: Cum Rot Hrs: 0 Daily ROP: ##### Brief Description Of Operations: move rig 6 miles and ru, 98% of rig on new location, set pits, pumps, generators, started setting sub, Butchs trucking shut down for the day, waiting on daylight to finish rig move.

MORNING DRILLING REPORT Date: 8/19/2013 Day: 2 Present Operation: waiting on daylight to finish making derrick ready to raise Depth: Footage: 0 Rot. Hrs.: Cum Rot Hrs: 0 Daily ROP: ##### Brief Description Of Operations: finish moving rig in and rig up, set sub, raise sub, put derrick on floor, set in back yard, changed raising line on driller side. They did not change both before rig down, ru derrick, wait on daylight to finish making derrick ready to raise, took both pumps apart and replaced seats, valves, swabs and all gaskets (trucks finished and off location @ 19:00 8-18-13)

MORNING DRILLING REPORT Date: 8/20/2013 Day: 3 Present Operation: ru and make ready to change traction motor on #1 pump Depth: Footage: 0 Rot. Hrs.: Cum Rot Hrs: 0 Daily ROP: ##### Brief Description Of Operations: finish ru and raise derrick, change out rollers on top drive, ru top drive, service loops, floor, pits and make ready to change traction motor on #1 pump

MORNING DRILLING REPORT Date: 8/21/2013 Day: 4 Present Operation: wls @ 400 Depth: 442 Footage: 442 Rot. Hrs.: 5 Cum Rot Hrs: 5 Daily ROP: 88.4 Brief Description Of Operations: change out traction motor on #1 pump and finish ru to spud well, ru conductor,trash pumps, flowline and overflows on pits, put BHA on racks, pre spud inspection, spud well @ 21:00 8-20-13, drlg f/ 40 to 60, nov system went down, wait on nov hand and repair system, drlg f/ 60 to 442, wls @ 400

MORNING DRILLING REPORT Date: 8/22/2013 Day: 5 Present Operation: nu bop and chokemanifold Depth: 1250 Footage: 808 Rot. Hrs.: 5 Cum Rot Hrs: 10 Daily ROP: 161.6 Brief Description Of Operations: drlg f/ 442 to 1250, pump sweep and pooh,ld 6" and 8" dcs and shock sub, ru csg tools and ran 30 jts 9.625 csg set @ 1250, ru Crest and cmt 9.625 csg, circ 100 sx cmt to surface, cmt held, plug down 19:00 8-21-13, woc, cut off and weld on well head test to 1000 psi, nu bop and choke manifold

MORNING DRILLING REPORT Date: 8/23/2013 Day: 6 Present Operation: Rotary drilling with bit # 2 Depth: 2710 Footage: 1460 Rot. Hrs.: 9 Cum Rot Hrs: 19 Daily ROP: 162.2 Brief Description Of Operations: Function test BOPs, rig up Monahans tester, test BOPs, DSA flange leak, tighten DSA, still leaking, break DSA, lift stack, change BX-160 ring gasket, testing BOP with 2000 psi high, 250 psi low, test mud lines to pumps with 4000 psi high, 250 psi low, test casing with 1000 psi, center stack, install wear bushing, pick up BHA, test MWD, make up bit, trip in hole, install rotating bearing assembly, drilling cement and float equipment, rotary / slide drilling with bit # 2 from 1250-2710

MORNING DRILLING REPORT Date: 8/24/2013 Day: 7 Present Operation: Laying down Vertical BHA Depth: 5400 Footage: 2690 Rot. Hrs.: 17.5 Cum Rot Hrs: 36.5 Daily ROP: 153.7 Brief Description Of Operations: Rotary drilling with bit # 2 from 2710-3177, service rig and top drive, rotary drilling from 3177-5058, change shaker screens on # 2 shaker, rotary / slide drilling from 5058-5400, ( TD vertical section at 1230a 8-24-2013), pump sweeps, circulate hole clean, trip out of hole, lay down vertical BHA.

MORNING DRILLING REPORT Date: 8/25/2013 Day: 8 Present Operation: Slide / rotary drilling curve with bit # 3 Depth: 6330 Footage: 930 Rot. Hrs.: 19.5 Cum Rot Hrs: 56 Daily ROP: 47.69 Brief Description Of Operations: Pick up motor, MWD, test same, make up PDC bit, service rig, adjust brakes, trip in hole with curve assembly pick up 27 joints DP off racks, tag bottom at 5400, No Fill. Slide drilling with bit # 3 from 5400-5803, Rotary / Slide drilling from 5803-6330.

MORNING DRILLING REPORT Date: 8/26/2013 Day: 9 Present Operation: Rotary / slide drilling with bit # 4 Depth: 7093 Footage: 763 Rot. Hrs.: 9.5 Cum Rot Hrs: 65.5 Daily ROP: 80.32 Brief Description Of Operations: Rotary / slide drilling from 6330-6436 ( TD curve 6436 at 730 am 8-25-2013, pump sweeps, circulate hole clean, trip out of hole, lay down curve assembly, pick up lateral assembly, scribe, test MWD and motor, make up bit, service rig, (DT-Latshaw22, repairs to spear ), trip in hole, safety ream 6241-6436. (No fill), slide / rotary drilling from 6436-7093.

MORNING DRILLING REPORT Date: 8/27/2013 Day: 10 Present Operation: Rotary / slide drilling with bit # 4 Depth: 9199 Footage: 2106 Rot. Hrs.: 23 Cum Rot Hrs: 88.5 Daily ROP: 91.57 Brief Description Of Operations: Slide / rotary drilling from 7093-8219, service rig, Rotary / slide drilling from 8219-8688, service rig, rotary / slide drilling from 8688-9199

MORNING DRILLING REPORT Date: 8/28/2013 Day: 11 Present Operation: Rotary / slide drilling with bit #4 Depth: 11295 Footage: 2096 Rot. Hrs.: 23 Cum Rot Hrs: 111.5 Daily ROP: 91.13 Brief Description Of Operations: Slide drilling from 9199-9228, service rig, rotary / slide drilling from 9228-10634, service rig, Rotary / slide drilling from 10634-11295. **2 am - 6 am, drilling with # 1 pump, changing liner / junk ring gaskets in # 2

MORNING DRILLING REPORT Date: 8/29/2013 Day: 12 Present Operation: Rotary / slide drilling with bit # 4 Depth: 12704 Footage: 1409 Rot. Hrs.: 18.5 Cum Rot Hrs: 130 Daily ROP: 76.16 Brief Description Of Operations: Survey, cycle pumps, check MWD, slide drilling from 11295-11297, (Both pumps down- pull 11 stands prior to #1 pump being repaired,), wash / ream back to bottom with # 1 pump. Slide drilling from 11297-11325 with # 1 pump, Rotary / Slide drilling from 11325-11669 with both pumps, service rig, R/S drilling from 11669-12046,* re-log sec.11952-12046, Rotary/slide from 12046-12328,*Re-log from 12046-12095 + 12297-12328 Failure of Gamma due to vibration. Slowed to 150 / hr. to regain operation of tool. Rotary/slide drilling from 12328-12704.

MORNING DRILLING REPORT Date: 8/30/2013 Day: 13 Present Operation: ld drlg string Depth: 13860 Footage: 1156 Rot. Hrs.: 15.3 Cum Rot Hrs: 145.3 Daily ROP: 75.8 Brief Description Of Operations: dirc drlg lateral rotate and slide f/ 12704 to 13860, pump sweeps and circ hole clean while working pipe, pooh 10 stds and ld drlg string td well @ 13860 21:45 8-29-13

MORNING DRILLING REPORT Date: 8/31/2013 Day: 14 Present Operation: running 5.5 csg Depth: 13860 Footage: 0 Rot. Hrs.: Cum Rot Hrs: 145.3 Daily ROP: ##### Brief Description Of Operations: ld drlg string, ru csg tools and running 20# P-110 5.5 csg @ 8300

MORNING DRILLING REPORT Date: 9/1/2013 Day: 15 Present Operation: rd and make ready to move rig Depth: 13860 Footage: 0 Rot. Hrs.: Cum Rot Hrs: 145.3 Daily ROP: ##### Brief Description Of Operations: ran 306 jts 20# P-110 5.5 csg set @ 13836,burst floatation and circ air out of string, ru Crest and cmt 5.5 csg circ 227 sx to surface, plug down @ 21:00 8-31-13,float held 2 bbls back on bleed off, nd bop, set 100K on slips, waited 1 hr on working torch for slip hand,nu tbg head and cap, clean and jet pits, rig released @ 6:00 9-1-13

MORNING DRILLING REPORT Date: 9/2/2013 Day: 16 Present Operation: waiting on daylight and trucks to move rig Depth: 13860 Footage: 0 Rot. Hrs.: Cum Rot Hrs: 145.3 Daily ROP: ##### Brief Description Of Operations: rd and make ready to move rig 5 miles on 9-2-13, laid derrick over make rig ready to move, waiting on daylight and trucks to move rig Final Report