Sante Fe Main Office Phone: (505) 476-3441 General Information Phone: (505) 629-6116 Online Phone Directory https://www.emnrd.nm.gov/ocd/contact-us

State of New Mexico Energy, Minerals and Natural Resources Oil Conservation Division 1220 S. St Francis Dr. Santa Fe, NM 87505

Form C-101 August 1, 2011 Permit  25996

APPLICATION FOR PERMIT TO DRILL, RE-ENTER, DEEPEN, PLUGBACK, OR ADD A ZONE

1. Operator Name and Address Murchison Oil and Gas, LLC P O Box 670127 Dallas, TX 75367		2. OGRID Number 15363
		3. API Number 30-015-34706
4. Property Code 8134	5. Property Name PENASCO STATE COM	6. Well No. 002

7. Surface Location

UL - Lot A

Section 30

Township 18S

Range 25E

Lot Idn

Feet From 990

N/S Line S

Feet From 990

E/W Line W

County EDDY

8. Proposed Bottom Hole Location

UL - Lot

Section

Township

Range

Lot Idn

Feet From

N/S Line

Feet From

E/W Line

County

9. Pool Information

PENASCO DRAW;MORROW (GAS)

82770

Additional Well Information

11. Work Type New Well	12. Well Type GAS	13. Cable/Rotary	14. Lease Type State	15. Ground Level Elevation 3644
16. Multiple N	17. Proposed Depth 9000	18. Formation Morrow	19. Contractor	20. Spud Date 6/1/2006
Depth to Ground water 100		Distance from nearest fresh water well > 1000		Distance to nearest surface water > 1000

 We will be using a closed-loop system in lieu of lined pits

21. Proposed Casing and Cement Program

Type	Hole Size	Casing Size	Casing Weight/ft	Setting Depth	Sacks of Cement	Estimated TOC
Surf	17.5	13.375	61	360	375	0
Int1	12.25	9.625	47	1150	600	0
Prod	7.875	5.5	17	9000	900	5000

Casing/Cement Program: Additional Comments

Surface Casing cement w/ Class "C" or Type I + Additive Intermediate Casing cement w/ Class "C" or Type I + Additive Production Casing cement w/ Class "C" or Type I + additives

22. Proposed Blowout Prevention Program

Type	Working Pressure	Test Pressure	Manufacturer
Double Ram	11	5000
Hydril	11	3000

23. I hereby certify that the information given above is true and complete to the best of my knowledge and belief. I hereby certify that no additives containing PFAS chemicals will be added to the completion or recompletion of this well. I further certify I have complied with 19.15.14.9 (A) NMAC   and/or 19.15.14.9 (B) NMAC , if applicable. Signature:		OIL CONSERVATION DIVISION
Printed Name: Electronically filed by Michael Daugherty		Approved By: Bryan Arrant
Title: Vice President Operations		Title: Geologist
Email Address: mdaugherty@jdmii.com		Approved Date: 3/23/2006	Expiration Date: 3/23/2007
Date: 3/22/2006	Phone: 972-931-0700	Conditions of Approval Attached