December 14,2008

United States N u c I e a r Reg u I a to ry Coni m iss io 11

Region IV - Mater ia ls Inspect ion Branch 61 1 Ryan Plaza Drive, Suite 400 Arlington, Texas 7601 1

RE: Source Abandonment for EnCana 011 CU: Gas (USA), Inc.: Stud Horse Butte 76-28

Dear Sir or Madam:

This letter is t o conf i rm t h e a5andoi iment a i irreI.riwi!j le s a u r ~ e s i n a well in accordance with Part 39, Sect ion 39.77(d). !nfcjrmation fo r this abandoni i ie i i t IS atthched.

If you have any quest iuns or require a d d 1 5 m ; 1 / information, please con tac t me a t 281-285-7460.

Thomas S. Wood Deputy Radiation Safety Officer Sc h Iu m b e rg e I. Te c h n o I o g y Corporat ion

Date of Occurrence:

Source Abandonment - EnCaiia Oi l & Gas (USA), Inc. Well: Stud Horse Butte 76-28

Source #1 Identif ication: Manufacturer: Model : Depth:

Source #2 Identif ication: Manufacturer: Model : Depth:

W e II Identif ication:

Seal Results:

Recovery Attempts:

Depth of Wel l :

Identif ication:

Reports:

Init ial Telephone Contact:

December 4,2008

592 GBq (16 Ci), Am241 Be, Neutron Source, Ser ia l # G5146 G a mm at ro n, In c .

8,193’ M D NSR-F (AN-HI‘)

63GBq (1.7 Ci), Cs 137, Density Source, Ser ia l # A5367 QSA Global, Inc.

8,206’ MD CDC.CY3 (GSR-J)

Company: EnCana Oil & Gas (USA), Inc. Wel l : Stud Horse B ~ i t t e 16-28 Fie Id: J o n ah County: Su blel te St a t e : W y o rn i n g API Number: 49-035-26944

216’ of Class G , 14.5 ppg cement w i t h Red Oxide Dye spotted in the annulus above the dril l pipe a n d logging too l f rom 6,969’to 6,753’. A 847’ k ick off plug of Class G, 17.5 ppg cement w a s set f rom 6,691’to 5,844’. In addition t o the - 1,211’ of heavy we igh t dri l l pipe, collars, f ishing assembly and logging tool remaining on top of the sources from 6,969’to 8,180’, the casing l iner set above the cement plug a t the KOP will serve as the mechanica l deflection.

Mul t ip le attempts f rom 11/23/08 t o 12/4/2008

12,445’

Plaque as required by Par t 39 ordered and will b e at tached t o the well.

N o other agency wi l l receive a copy of this report.

Mr. Charles Cain, NRC-Region IV on l1/28/08 @ 14:OO CST.

0 Offshore (OCS Waters)

Date: December 4, 2008 Company Name (Full Name): EnCana Oil & Gas (USA), Inc. Well Name or (OCS-G No. or State Lease No.): Stud Horse Butte 76-28 Offshore State of: API Number (If Available or CLSD): 49-035-26944 Lease Location (legal): se/sw 28-29n-108

Land or State Lease Waters Time: 14:20

Rig Name: Ensign 125 Field Name: Jonah

County or Parish: Sublette District: Rock Springs

TD: 12,445 ft Casing Depth: 2,501 ft Depth of Fish (Top): 6,969 ft Source Type (1): NSR-F Source Activity (1 1: 592 GBq Serial No. (1): NSRF ~ 5 1 4 6 Isotope ( I ): Am-241 Be

Depth (11: 8,193.5 ft Leak Test Date (1 ): 08/25/2008 Leak Test Results (1): 3.409E-001 Bq

State: Wyoming Sales Engr: Eric Borchardt Hole Size: 7.88 in Casing Size: 9.625 in Bottom of Fish: 8.224 ft

Deviation: 0

Source Type (2): GSR-J Source Activity (2): 63 GBq Serial No. (2): GSR-J A5367 Isotope (2): Cs-I37 Depth (2): 8,206.7 ft Leak Test Date (2): 06/25/2008 Leak Test Results (2): 1.579E-001 Bq

Tool String (Head to Bottom): LEH-QT/ DTC-H/ HGNS-H/ HRCC-H/ HRMS-H/ AIT-M

Date and Time Stuck: November 23, 2008, 17:OO Date and Time Cement Pumped: December 4 @, 06:30 Hole Conditions: Hole conditions were reported ok by client before starting operations.

Fishing Attempts: Went down with pipe and overshot and cable became free at 8,300'. Tool was pull into overshot but pipe became stuck at the same point. Broke weak point. Client ran temp log twice and free point tool. Perforated at 6,500', 6,000', 5,500' and 4,500' to regain circulation Back-off at 2,460', jarred, back-off at 6,000', jarred and back-off at 6,950'. Jarred but not ok. Comments (what happened to get stuck?, etc.,): Logging down with PEX-AIT and bridged at 11,560'. Pulled up around 100' with some pulls on head and cable. After reaching normal tension started RIH again and noticed after a few seconds that the cable was stuck (no change in head tension and surface tension going down). Pulled up to maximum safe pull without changing in head tension and informed the client and FSM. After doing stretch calculation noticed that the cable was stuck at around 4,000 ft.

NOTE: Regulatory agencies should be contacted ONLY by the Schlumberger Technology Corporation (STC) Radiation Safety Officer or, if unavailable, his designee.

Page 1 of 2 Rev 7/08

Notified: E! NRCor Stateof: Region IV - NRC

Name: Mr. Chuck Cain Name:

Date: 11/28/2008 Date:

Time: 14:OO CST Time:

The following is a summary of NRC and/or Agreement States regulations that must be followed when abandoning an irretrievable well logging source(s). The specific regulations are found in 10 CFR 39.15 and equivalent regulations in Agreement States. An irretrievable well logging source means any licensed radioactive sealed source that becomes lodged in a well and cannot be retrieved after reasonable efforts have been made to recover the source(s).

1. If a well logging source is irretrievable, the following requirements must be implemented.

a) The source(s) must be immobilized and sealed in place with a cement plug. The cement has to be dyed red in Texas as a condition of the Texas Railroad Commission (others occasionally).

A mechanical deflection device must be set at some point in the well above the cement plug to prevent inadvertent intrusion on the source, unless the cement plug and sources(s) are not accessible to any subsequent drilling operations. The mechanical device can be devices such as a whipstock, old drill bit, etc. For LWD, drillpipe and/or collars left on top of the BHA usually are approved as a deflection device.

b)

c) A permanent identification plaque, (supplied by the STC RSO) made of stainless steel (or brass, bronze and monel), must be mounted at the surface of the well unless the mounting of the plaque is not practical (i.e. subsea completion).

2. The STC RSO (or his designee) wil l notify the NRC or Agreement State of the abandonment plan developed by/with the client. The NRC or Agreement State must approve the abandonment plan prior to implementation. The federal and/or state oil and gas well permitting agency must also approve the abandonment plan. The contact with the well permitting agency is the responsibility of the well owner/client but we should advise him/her of that fact as a courtesy.

3. If any changes must be made to the abandonment plan submitted to the NRC or Agreement State, the STC RSO must be informed so that he/she can get approval of the modification, as appropriate. The actual abandonment must not begin until any abandonment plan or modification to that plan is approved by the appropriate agency.

4. The STC Radiation Safety Officer must file a written report with the NRC or Agreement State after the abandonment. The facility management shall file a written report within 7 days to the STC Radiation Safety Officer. The facility report should cover the final abandonment details such as:

a) Actual date of abandonment.

b)

c)

d)

e)

Any changes in the data sent with the approved abandonment plan.

Detailed Well Schematic depicting location and depth of tool(s), source(s), drill pipe, plugs, deflection device etc.

Any information pertinent to the abandonment that the STC RSO may not have for his/her final report.

If all data sent to the STC RSD is still applicable for the final report, an e-mail or fax is to be sent to the STC RSO confirming that fact so that he/she can be ensured that the data sent to the appropriate agency is totally accurate. Most facilities send a completely new report since many these documents often are incomplete or are poor quality fax reproductions.

If there are any questions regarding these procedures, discuss them with your Operations Manager.

FACILITY MANAGEMENT MUST ENSURE THAT THE FINAL ABANDONMENT REPORT IS SUBMITTED TO THE STC RADIATION SAFETY OFFICER.

Page 2 of 2 Rev 7/08

Wellbore Diagram

Casing/ Hole Size

9 5/8" Csq @. 2.501 '

5,844' Top of Cement Plug

6,753' Top of Cement Plus

6,969' Top of Fish

8,180' Top of Tool

TD @ 12,445' MD

Customer Job Number

County

Sublette

1 ENCANA USA - DENVER, FOR XML BlLLlN

StatelProvince

WY

2207161068

Pore Press. Gradient I BHP osi 1 BHS:63'F I BHC:27"F I Dsi/f l

Well

STUD HORSE BUTTE 76-28

Location (legal) Schiumberger Location Job Start

Rock Springs, WY 2008-Dec-04 Field Formation NamelType Deviation Bit Size Well MD

JONAH ' 7.88in 6,900 ft

Well TVD

6,900 ft

I

Well Master: 0630797256 API I uwi: Rig Name Drilled For Service Via

ENSIGN 125 Gas Land

1 I I

CasinglLiner Depth,& Size, in Weight,lblft Grade Thread

1

_______ 2008-Dec-04 6:33 2008-Dec-04 6:33 2008-Dec-04 6:33 2008-Dec-04 6:33 2008-Dec-04 6:33 2008-Dec-04 6:36 2008-Dec-04 6:38 2008-Dec-04 6:38 2008-Dec-04 6:39 2008-Dec-04 6:39 2008-Dec-04 6:39 2008-Dec-04 6:40 2008-Dec-04 6:40 2008-Dec-04 6:40 2008-Dec-04 6:40 2008-Dec-04 6:42 2008-Dec-04 6:45

Offshore Zone

Reset Total, Vol = 23.2 bbl End Tail Slurry

Well Class Well Type

New Development TubinglDrill Pipe

Dec 4,2008 eZView for WRS3 v3.002-SR

Drilling Fluid Type Max. Density Plastic Vi! cp Other 10.1 Ib/aal

Page 1 of 3

Depth, Size, in Weight, IbM Grade Thread

6961 I 4.5 I 16.6 I Service Line

Cementing

5600 psi

Max. Allowed Tubing Pressure

Job Type

Set Cement Plug P/W PerforationslOpen Hole Max. Allowed Ann. Pressure WellHead Connection Top, ft Bottom, ft spf No. of Shots Total Interval

psi 4 1/2 XH DP pin ft Service instructions Diameter

Provide Equipment and Personnel to cement two plugs.

CasinglTubing Secured 1 Hole Volume Circulated prior to Cementinga

ift Pressure: 7265 psi Pipe Rotated Pipe Reciprocatedu

Top lugs: Bottom Plugs: 0. Centralizers:

ement Head Type:

Job Scheduled For: Arrived on Location: I Leave Location:

in

Drill Pipe 81.5 bbl ft Treat Down Displacement Packer Type Packer Depth

Tubing Vol. Casing Vol. Annular Vol. OpenHole VoI

91.6 bbl bbl 620.5 bbl 710.9 bbl Casing Tools Squeeze Job

Shoe Type: Squeeze Type

Shoe Depth: ft TooiType:

Stage Tool Type: Tool Depth: ft Stage Tool Depth: ft Tail Pipe Size: in Collar Type: Tail Pipe Depth: ft

12/3/2008 23:OO 2008-Dec-03 22:45 2008-Dec-04 1530 Collar Depth: ft Sqz Total Val: bbl Date Time Treating Flow Rate Density Volume 0 0 0

Pressure Message

Well

STUD HORSE BUTTE #76-28

Page 2 of 3 Dec 4,2008 eNiew for WRS3 v3.002-SR

Job Number 1 2207161068

Field Service Date Customer

JONAH 08339-Dec-04 ENCANA USA ~ DENVER, FOR XML BlLLlN

Average Pump Rates, bpm Slurry N2 Mud Maximum Rate

I 3 3 Treating Pressure Summary, psi

Maximum Final Average Bump Plug to Breakdown

Dec 4,2008 eZView far WRSB v3.002-SR

Volume of Fluid Injected, bbl Total Slurry Mud Spacer N2

56.3 I 81 11.7 I Breakdown Fluid Volume Density

bbl 1 Ib@al - ___

Page 3 of 3

Designed Slurry Volume Displacement Mix Water Temp Avg. N2 Percent

"F % 55.5 bbl 81 bbl 80

Cement Circulated to Surface? Volume bbl

ft [7 WashedThruPerfs To

Customer or Authorized Representative

Grove, Carl

Schlumberger Supervisor

Chavero Perez, Christian 0 CirculatlonLost Job Completed

Stud Worse utte 76-28 Down hole Schematic

- Item Kick Off Plug 17.5#

Cement with Red Oxide Dye 14.5#

Top Of Fish 35 Joints of 41# SHWDP 3 Joints 16.6# DP 1 Joint 20# DP xover Pump Out Sub Extension Fishing Overshot

PEX Tool LEH-QT DTC-H H ILT-FIB - neutron source at 31 .I feet - gamma ray source at 17.9 feet

21 6' TOP Bottom

1074.94 TOP 92.94 TOP 30.96 TOP

1.76 TOP 1.65 TOP 5.44 TOP 3.72 TOP

Bottom

3.6 TOP 3

37.6

5844'

6691'

6753 6969

6969 8043.94 81 36.88 81 67.84 81 69.6

81 71.25 81 76.69 8180.41 -1211.41

8180.41 81 84.01 8187.01

source 81 93.51 source 8206.71

0 Bottom 8224.61 43.6

Well : Stud Horse Butte 76-28 Field : Jonah

w

Cem CAD E plug cementing recommendation for Plug

MD (fl)

6875.0

Operator Prepared by : Matthew Bond

E-Mail : rnbondQsIb.com

: EnCana Oil 81 Gas

Phone : 307-350-81 19

OD Weight (in) (Ib/ft)

4 112 16.6

Plug Configuration

ft 0

0 0 a m

0 0 0 0 7

0 0 0 m -r-

Fluid Sequence

Prepared for : Amie Weis Date Prepared : 12-3-2008

Other Total pumping time: 00:42 hr:rnn

I Displacement volume: 92.2 bbl

I Target K.O.P.: 6875.0 fl

WASH Water Density: 8.33 lblgal Volume: 11.5 bbl length (without Drill Pipe): 103.6 fl length (with Drill pipe): 108.9 fl

SLURRY Slurry Density: 14.50 lblgal Volume: 22.3 bbl length (without Drill Pipe): 200.0 ft length (with Drill pipe): 204.3 ft

Wet Phase Content Fresh water Base Fluid 8.779 gal/sk

I Drv Phase Cnntent

I Blend: G Yield: 1.88ft3/sk I

* Mark of Schlumberger

Well : Stud Horse Butte 76-28 Field : Jonah

)c

Cem CAD E plug cementing recommendation for KOP

MD OD (ft) (in)

6575.0 4 112

Operator : EnCana Oil &Gas Prepared by : Matthew Bond

E-Mail : rnbondQslb.com Phone : 307-350-8119

Weight (Iblft)

16.6

Prepared far : Amie Weis Date Prepared : 12-3-2008

Plug Configuration

Fluid Sequence

Fluids Placement Name I Volume (bbl) I Rate (bbh in )

I Water I 10.0 I 3.0 I

I Target K.O.P.: 6075.0 ft

Volume: 11.5 bbl Length (without Drill Pipe): 103.6 ft

Volume: 55.7 bbl Length (without Drill Pipe): 500.0 ft

Wet Phase Content Fresh water Base Fluid 4.152 gallsk

Dry Phase Content Blend: G Yield: 1.08 ft3lsk

* M a r k of Schlumberger

CernCAT v l . 3

Well Stud Horse Bu t te 76-28 Client Encana

Field Jonah

Engineer Chr is t ian Chavero

Country Uni ted States

SIR No.

Job Type

Job Date 1 2 - 0 4 - 2 0 0 8

4 1/2 XHole Plug

13:00:29

13:lO:OO

13:20:00

13:30:00

13:40:00

13:50:00

14:OO:OO

14 : 1O:OO

14:20:57

Pressure

r

Rate Density

5 0 100

LB/G

Messages

Start Pumping Water

End Water Pressure Test Lines

Reset Total. Vol = 10.42 bbl Start Mixing Tail Slurry

Reset Total. Vol = 56.3 bbl End Tail Slurry Start Pumping Water Reset Total, Vol = 1.7 bbl End Water Start Displacement

End Displacement 81 bbl Stopped Acquisition

12/04/2008 16:01:4

CemCAT v l . 3

Well Stud Horse But te 7 6 - 2 8

Field Jonah

Engineer Christ ian Chavero

Country Uni ted States

Client Encana

SIR No.

Job Type

Job Date 1 2 - 0 4 - 2 0 0 8

4 1 / 2 XHole Plug

06:33:28

06:38:00

06:43:00

06:48:00

06:53:00

06:58:00

07:03:00

07:08:00

07 : 13:OO

07:20:11

hh:mrn:ss

, Z r n < l r n B " l 1" I O

Pressure Rate

f

- Density Messages

Start Job Start Water

Pressure Test Lines

Reset Total. Vol = 10.15 bbl End Water Start Mixing Tail Slurry

Reset Total. Vol = 23.2 bbi End Tail Slurry Start Pumping Water Reset Total. Vol = 1.7 bbl End Water

Start Displacement Reset Total, Vol = 87.65 bbl End Displacement End Job Stopped Acquisition

12/04/2008 07:46:i

Monitoring Services

P.O. BOX 266677. HOUSTON, TEXAS 77207 .AREA CODE 71314786820, FAX 2811532.0928

SEALED SOURCE LEAK TEST CERTIFICATE

RSO SCHLUMBERGER 6631 Customer#: 953 2901 YELLOWSTONE RD.

ROCK SPRINGS WY Source #: 38043

82901 Account #: 953 RADIONUCLIDE: CS-137

ACTIVITY: 1.7 CI SERIAL NO: A5367 SOURCE CODE: GSRJ WIPE DATE: 6/25/2008

EFFICENCY: 0.95 NET CPM: - 9 GROSS CPM: 27 BKGCPM: 18

=MICROCURIE NET CPM

EFF X 2.22~10% DPM/u CI THE ABOVE SOURCE WIFE TEST HAS BEEN ASSAYED IN ACCORDANCE WITH OUR RADIOACTIVE MATERIAL LICENSE AND THE APPROPRIATE REGULATORY REQUIREMENTS. THE REGULATIONS DEFINE A LEAKING SOURCE AS ONE FROM

MORE OF ACTIVITY. WHICH AN APPROPRIATE WIPE TEST HAS REMOVED 0.005 (5.0~10E-3) MICROCUIRE OR

MICROCURIE THE REMOVABLE ACTIVITY 4.267E-006 WAS:

1.579E-001 Bq ASSAY NO: 7/04/2008 58 DATE: 7/04/2008

ASSAYED BY: /*&A- r) --

Monitoring Services

P.O. BOX 26E677. HOUSTON, TEXAS 77207 .AREA CODE 11314786820, FAX281/532-0928

SEALED SOURCE LEAK TEST CERTIFICATE

RSO SCHLUMBERGER 6631 Customer#: 953 2901 YELLOWSTONE RD.

ROCK SPRINGS w Source #: 36344

82901 Account #: 953 WDIONUCLIDE: AM241 BE

WIPE DATE: 8/25/2008 EFFICENCY: 1.32 NET CPM: - 27

ACTIVITY: 16 CI SERIAL NO: G5146 SOURCE CODE: NSRF

GROSS CPM: 44 BKGCPM: 11 NET CPM

EFF X 2.22~10~6 DPM/u CI =MICROCURIE

THE ABOVE SOURCE WIPE TEST HAS BEEN ASSAYED IN ACCORDANCE WITH OUR RADIOACTIVE MATERIAL LICENSE AND THE APPROPRIATE REGULATORY REQUIREMENTS. THE REGULATIONS DEFINE A LEAKING SOURCE AS ONE FROM

MORE OF ACTIVITY. WHICH AN APPROPRIATE WIPE TEST HAS REMOVED 0.005 (5.0~10E-3) MICROCUIRE OR

MICROCURIE THE REMOVABLE ACTIVITY 9.2,4E-006 WAS:

3.409E-001 w ASSAY NO: 911 112008 47 DATE: 911 112008

ASSAYED BY: --

Schlurnberger Technology Corporation Radiation Safety & Compliance

200 Gillingham Lane, MD 7 Sugar Land. Texas 77478 Tel 281-285-7460 Fax 281-285-8526

To Ernie Jilek

From Tom Wood

Subject Abandonment Plaque

Date: December 14,2008

Fax : 985-727-21 65

Tel: 281 -285-7460 Fax: 281 -285-8526

Pages 2 (including cover)

Ernie,

Request for abandonment plaque for EnCana Oil and Gas (USA), Inc., wel l information follows.

Regards,

This transmission is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged and confidential. If you are not the intended recipient, you are hereby notified that any disclosure, distribution or copying of this information is strictly prohibited. If you have received this transmission in error, please notify us immediately by telephone and return the original documents t o us at the address above via the United States Postal Services.

Schlurnberger Technology Corporation Radiation Safety & Compliance

200 Gillingharn Lane, MD 7 Sugar Land, Texas 77478 Tel 281-285-7460 Fax 281-285-8526

December 14,2008

Graphics N' Metal 1200 Clause1 Street Mandenville, LA. 70448

(985) 727-21 65 (Fax) (504) 669-6082

Attn: Ernie Jilek,

Please construct the standard abandonment plaque with the following information:

Company: EnCana Oi l & Gas (USA), Inc. Well Name: Stud Horse Butte Field: Jonah County: Sublett State: Wyoming

Date of Abandonment: 12/4/2008 Well Depth: 12,445' Plug Back Depth: 6,753' Top of Fish: 6,969' Sources Abandoned: 592 GBq (16 Ci), Am-241, Neutron Source @ 8,193'

63 GBq (1.7 Ci), Cs-137, Density Source @ 8,206'

API#: 49-035-26944

Special Instructions: DO NOT RE-ENTER THIS WELL BEFORE CONTACTING REGION IV OFTHE NUCLEAR REGULATORY COMMISSION OR SCHLUMBERGER TECHNOLOGY CORPORATION

Please forward to me the completed plaque and invoice.

Thomas S. Wood P

MEMORY TRANSMISSION REPORT

FILE NO. DATE TO DOCUMENT PAGES START TIME END TIME PAGES SENT STATUS

: 682 : 12.14 15:15 : 8919857272165 : 2 : 12.14 15:15 : 12.14 15:16 : 2 : OK

Schlurnborczer Technology COrpOTatlon Radiation safer,. 8 compliance

200 Gllllngharn Lon-. MD 7 suoar Lend. rems 77478 ret 281-28s-7480 Fax 28?-285-8528

Fax To Ernie J i lek

TIME : 12-14-'08 15:16 FAX NO.l : 281-285-8526 NAME : Schlumberger

From Torn W o o d

Subject Abandon me nt Plaque

*** SUCCESSFUL TX NOTICE t i t

Date: December 14.2008

Fax : 985-727-21 65

Tel: 281 -285-7460 Fax: 281 -285-8526

Pages 2 (including cover)

Ernie.

Request for abandonment plaque for EnCana Oi l and Qas (USA). Inc.. well information follows.

Regards, e

This crensmission is intended O n l y for the use of th= Individual o r entitv to Which it is addressed and may conrain informotion thet is priwiIEQed and confidentia1. I f you are not tho intendod recipient, you are hsraby notified that any disclosure. distribution or copying of this infomation is -arictIy prohibited. It you have received this trsntrniseion in error. please notifv us immediarely by telephone and return the orioin-1 documents to us atrhe address above via the Unitad SteteS Pase l Services.