COUNTY: FALL RIVER

LEGAL LOCATION: NWSE 30-9S-1E

API NO: 40 047 20299

PERMIT NO: 1635

WELL NAME: STARTECH #300901-1

FEDERAL

OPERATOR: STARTECH ENERGY CORP.

PERMIT ISSUED: 11/05/1997

PERMIT CLOSED: 03/23/1998

FILE LOCATION: 9S-1E-30 NWSE

TARGET CODES:

WELL HISTORY / CHECKLIST

PERMIT TO DRILL / INTENT TO DRILL

WELL INSPECTION / SCOUT REPORTS

OPERATOR’S TECHNICAL REPORTS / MAPS

ADMINISTRATIVE / SUNDRY REPORTS

CORRESPONDENCE

MISCELLANEOUS

WELL HISTORY / CHECKLIST

PERMIT and BOND RELEASE CHECKLIST

Startech #300901 Federal

FORMS RECEIVED ---- Application (Form 2)

Permit Fee of $100.00 --- Oil & Gas Leasing Agreement --- Permission to Inspect Form /P &PBond# n

Carrier Name and Address:

9S-1E-30 NWSE, Fall River County

plate Map Organization Report (Form 1) if not on file Certificate of Negotiation (Form 9) Certification of Applicant

!Surface Restore Bond # (729

NOTIFICATION OF PENDING APPLICATION: (Winword NEWAPP.PER merge NEWLST.PER) State Archaeologist / SD Dept of Game, Fish, Parks -Harding County Zoning Adm

Fax 605-375-3415 REVIEW OF PERMIT APPLICATION:

Surface casing program: Kri -thru Fox Hills tZadequate ais stated Spacing requirements:fthmeets statewide spacing 1.(exception anted (Case # 3(- 7 )

1/44onforms to Alez w aso.c.„.„ Field spacing

REVIEW OF PIT LINER VARIANCE: if applied for tikPlans and specifications sent to Staff Engineer (Winword APLVMEMO.PER) uttkApproved k&DisapprovedN±Variance granted Of variance denied

wift L._ mega tut et OF ?Erpir (re_epi- SEE e_ aNP (rnmic -to -

PERMIT APPROVED: Permit # /e,.96 API # /" dr 7 °to 02 99 -"Transmit check to Treasurer's Office with copy to our accounting personnel ✓ ype Permit #, API # and date on Application to Permit, have supervisor sign two forms. -,Prepare conditions to Permit (Winword COND .PER)

Mail operator application, conditions, cover notice, fee receipt, pit liner app-if applicable Mail application copies (Winword ENVPREM.PER) and fax to Harding Co. 605-375-3415

__

PERMIT TO DRILL / INTENT TO DRILL

State Pub. Co., Pierre S. Dalt. Oil & Gas Board

FORM 2 APPLICATION FOR PERMIT TO:

SIGNED __

A.J. Stein, P.Eng. TITLED Superntend>vnhATE 5eptember_18,_1997.

CONDITIONS:

O COMPLETE SET OF SAMPLES, AND CORES IF TAKEN, MUST BE SUBMITTED.

0 SAMPLES, AND CORES IF TAKEN, BELOW DPT14, MUST BE SUBMITTED.

SEP 2 9 1n7

DEPTOFENNMF:N7PWWIAL REST):JriCES-ROO

ZONE

ig SINGLE ZONE

FARM OR LEASE NAME

SDM 85386 0 DRILL ■ DEEPEN ■ PLUG BACK

NO. 7tartech - Federal #300901-1 a OIL WELL ■ GAS WELL ■ MULTIPLE

OPERATOR

STARTECH ENERGY CORP. FIELD AND POOL, OR WILDCAT

Wildcat

ADDRESS

2600, 140 - 4th Avenue, S.W. Calgary, AB CANADA T2P 3N3

NO. ACRES IN LEASE

40 LOCATION (In feet from nearest lines of section or legal subdivision, where possible)•

1660' FSL and 2481' FEL (NWSE) Section 30, T9S - R1E BHM

'j ,A, SEC. TwP. RGE

NWSE Sec 30, T9S - R

COUNTY

Fall River, SD NAME AND ADDRESS OF SURFACE OWNER

Jnited States Department of Agriculture Forest Service, Fall River Ranger Distrct

ELEVATION

3836 NO. OF WELLS ETC.

PRATtp DEPTH ROTARY OR CABLE TOOLS Rotary - drill with Gel/Chen

CONTRACTOR NAME AND ADDRESS OF CONTRA

Ashbey Drilling Corporation 1776 Lincoln Street, Suite 810, Denver, Colorado 80203

APPROXIMATE DATE WORK WILL START

IF LEASE PURCHASED WITH ANY WELLS DRILLED, FROM WHOM PURCHASED (Name and address)

PROPOSED CASING AND CEMENTING PROGRAM

SIZE OF HOLE SIZE OF CASING WEIGHT PER FOOT NEW OR SECOND HAND DEPTH SACKS OF CEMENT

12-1/4" 8-5/8" 5-1/2"

24 0# 14.0#

NFW 440 44 0' cement to surf 7-7/8" NFW 3636' 528 sacks*

DESCRIBE PROPOSED OPERATIONS. IF PROPOSAL IS TO DEEPEN OF PLUG BACK, GIVE DATA ON PRESENT PRODUCTIVE ZONE AND PROPOSED NEW PRODUCTIVE ZONE. GIVE BLOW OUT PREVENTER PROGRAM IF ANY

Drill 12-1/4" hole to 440', set 8-5/8" new surface casing, cement circulated to surface.

Drill 7-7/8" hole with Gel/Chemical mud system to TD (approx. 3636'), set 5-1/2" production casing and cement to 1291' (300' above DAKOTA/FALL RIVER).

*actual cement volume will be calculated on X-Y caliper plus 30% excess.

1E

ical Mud

ace

DO NOT.; WRITE BELOW THIS LINE .

PERMIT NO. 1635 -...3 API 40 047 20299

APPROVAL DATE November 5, 1997,

ED BY School and Public Lands Date

DEPARTMENT of ENVIRONMENT and NATURAL RESOURCES

2050 West Main, Suite #1 Rapid City, SD 57702 Telephone 605-394-2229 FAX Number 605-394-5317 CHEAT FACES. GREAT PLACES.

Startech #300901-1 Federal Permit #1635 9S-1E-30 NWSE, Fall River County API 40 047 20299

PERMIT CONDITIONS

Approval has been granted to drill this location as detailed on the attached Application for Permit to Drill (Form #2) with the following additional provisions:

1. Reserve pit will be lined with a 12 mil liner as specified in ARSD 74:10:03:13.

2. Surface run-off will be diverted from the drilling site.

3. Cement will be circulated to the ground surface on the surface casing.

4. If intermediate or production casing (long string) is set: A. 200 sacks cement will be circulated. B. A cement bond log will be run and filed with the Department.

5. If abandoned: A. With long string, sufficient cement will be circulated to install:

1. A 100-foot cement plug immediately above the perforation. 2. A 100-foot cement plug, half in and half out of the top of the casing stub after the retrievable

part of the production casing has been removed. 3. A 100-foot cement plug, half in and half out of the top of any fresh water aquifer between the

top of the casing stub and the base of the surface casing. 4. A 100-foot plug, half in and half out of the base of the surface casing. 5. A 25-foot cement plug at the top of the surface casing.

B. Without long string, sufficient cement will be circulated to set: 1. 100-foot cement plug, half in and half out of the top of the Red Marker, Minnelusa, Canyon

Springs and Fall River formations. 2. A 100-foot cement plug, half in and half out of the base of the surface casing. 3. A 25-foot cement plug at the top of the surface casing.

C. Heavy, mud-laden fluid will be used between all plugs.

6. A washed set of sample cuttings (or cores, if cut) is to be shipped to the State free of charge.

7. Please notify this office prior to plugging so that a witness can be on location. Call the office or Fred V. Steece, Supervisor, 605-343-8617 home or Gerald (Mack) McGillivray 341-0207 home.

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COFFEE FLATS QUADRANGLE WYOMING—SOUTH DAKOTA

96 7.5 MINUTE SERIES (TOPOGRAPHIC

A60W RIPE7- /

,,,. 2'301 '78 1'79 , '80: 810 000 FEET 0/ANO.11 / 104°00'

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STARTECH 1997 EXPLORATION/DEVELOPMENT

FINAL

GEOLOGICAL

AFE # Ius970008

PROGNOSIS PROGRAM

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WELL NAME STARTECH ST. CROIX BUFFALO GAP

TWP:

EXPLORATION

Last Revision: 20-Aug-97

S009 RGE: E001 LOCATION: SPOT: NWSE

SOUTH DAKOTA

Startech

SEC: Q

WELL CLASSIFICATION

STATE

OPERATOR'

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PARTICIPANTS:

LAND DESCRIPTION Surface: Owner: Agent:

Legal description Mineral Leases

Pooling Agrmts.

Mineral Rights:

Leased by:

Crown Lease,

Freehold Title

STARTECH: St. Croix

BP0 APO

Ph:

Z5 Z5 2i 2~

Grasslands Buffalo Gao National

of D.U. for D.U.:

for D.U.:

Tab McGinley

D.U. (ha):I N/A yes:(

Cr/Cr Acq:

X no:j

no:I

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yes: I I Federal I I

Permit or D.R.

Holders

No. SDM - 85386

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OBJECTIVES Primary: Secondary:

TD:

Second Leo Fourth Leo Lower Converse

3636 feet

Q1L GAB X X X

I bbo f 4 L 71}~ I

F L

193 Buffalo Gap 3D

Actual Grd. 3836 Actual K.B.

Y -4787270.0

TOTAL DEPTH

ANTICIPATED SPUD' November. 1997

COORDINATES Surface:

Line No.:

Est Grd: Est. K.B.:

UTM's X - 577625.1

324

3778

Trace:

ELEVATIONS' 3788

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FORMATION H2S % EXPECTED PRESSURE

SUBSEA DEPTH (ft)

TVD (ft)

ISOPACH LITHOLOGY

Greenhorn 3097.0 691.0 25.0 limestone Belle Fourche 3072.0 716.0 425.0 shale Lower Cretaceous 2647.0 1141.0 450.0 shale

Dakota 2197.0 1591.0 365.0 sandstone, shales Sundance 1832.0 1956.0 375.0 siltsone, shale, sandstone Spearfish 1457.0 2331.0 215.0 shale, siltstones

Goose Egg 1242.0 2546.0 220.0 shale, anhydrite interbeds

Minnekahta 1022.0 2766.0 35.0 limestone Opeche 987.0 2801.0 145.0 shale Converse 842.0 2946.0 390.0 anhydrites, dolostones Red Marker 452.0 3336.0 15.0 shale, mnr dolostones

First Leo 437.0 3351.0 105.0 anhydrite, dolostone interbeds

'Second Leo Nil 1420 psi 332.0 3456.0 120.0 sandstone, dolostone

Fourth Leo 212.0 3576.0 60.0 sandstone, bituminous sh., dolost.

T.D. 152.0 3636.0

' Primary Zone of Interest

Nwse30.xls Page 1

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WFI J SITE SI JPFRVISION . tentative consultant - Kory Koke

MUD GAS DETECTION: yes:I X I no:l

SAMPI FS . Startech: 10 foot intervals to be sampled from the top of the Converse to T.D. samples in vials)

licence requirements

Second Leo, on penetration

Leo on consultation with the Calgary office after

set at 450 feet K.B. J-55)

to surface)

SI Croix in vials (2 sets of washed

State of South Dakota as per

CORING' One 60 foot core to be cut in the

DRILL aiatianta One DST to be run over the Second petrophysical evaluation.

CASING' 8 5/8" surface casing (24 lb/ft, J-55) 5 1/2 " production casing (14Ib/ft, (cement surface and production casing

OTHFR PFRTINFNT DAT&

-1000 -120

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I or, StlITF: SFL -SP - GR/Triple Induction: T.D. to surface casing - standard presentation - GR - XY calipers: T.D. to surface casing

Porosity: 0.45 to -0.15 (Sandstone matrix)

casing - standard presentation

to T.D.

for Calgary Office. 1 Well File)

SCHI UMRFRGFR Compensated Neutron - Spectral LithoDensity Pe: 0 to 10: Track ; DRHO: -50 to 450: Track 2; Note: X-Y calipers to run from T.D. to surface casing. Borehole Compensated Sonic - T.D. to surface

Transmit logs to Calgary by fax from Lower Converse

PRINTS - 6 copies of final prints, and 2 LAS floppies are required (3 for State of South Dakota, 1 St. Croix, I Geol,

GFOI ODIC STRIP I ()Gs:, 3 copies of final reports and strip chart (1 State of South Dakota, 1 Startech, 1 St. Croix)

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Area Code 403 Office Fax: 269 -2622

Office. Home Home Fax Cellular

Kel Johnston 231-2314 281-8130 281-8136 815-5856 V.P. Exploration

Murray Mason 231-2316 256-0496 861-3339 V.P. Production

Graeme Bloy 231-2311 547-5784 547-5784 861-3332 Geologist

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Preliminary Circulate in order and please initial to indicate approval.

Final

Preliminary approvals received as indicated by "X".

Area Geologist: CArbLoot Area Geol. I X I VP Exploration I X I

Area Eng. I X I VP Production I X I

Date: 14-Aug-97 Area Land 1 X I Land Manager I X I

Nwse30.xls Page 2

by Chief, Fluids Adjudication

THE UNITED STAO AMERIC4 L ,„F

„ fv, aivta, t1-Alt4.',0

(Signing Of)cer)

Section June 28, 1996

Serial No.

SOM 85386 Pon; 3100.11 , (October 19ST,

UNTrEDSTATES DEPAR' iNTOFTHE INTERIOR BUREAL d LAND MANAGEMENT

OFFER TO LEASE AND LEASE FOR OIL AND GAS :art ta

ut ult1R 5

n. I•itkoGFA.4 .‘ The undersigned (reverse) offers to lease all or any of the lands in Item 2 that are available for lease pursuant to theMInerdlastrig -Act of 1920 as amended and supplemented (30 U.S.C. 181 et seq.). the Mineral Leasing Act for Acquired Lands of 1947, as amended (30 U.S.C. 351-359), the Attorney General's Opinion of April 2. 194140 Op. Atty. Gen. 41), or the

96 JUN 20 AN 10: 17 READ INSTRUCTIONS BEFORE COMPLETING

Tab McGinley 600 17th Street, Suite 2620 South Denver, CO 80202

PLCPcif.ti MON (ANA MI CAFFME

B11.1.11465. MOP, (ANA

1. Name • a'

Street

City. State. Zip Code

2. This apPlication/olTerfiease is for: (Check only One) PUBLIC DOMAIN LANDS 0 ACQUIRED LANDS (percent U.S. interest

Surface managing agency If other t han ELM. Unit/Project

Legal description of land requested: •Parcel No • 270 •see Date (m/d/y): 05/ —29- 96--- • SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMPLETING PARCEL NUMBER AND SALE DATE.

T. R. • Meridian State County

Amount remitted: Paling fee s 75 . 00 Radii fre $ 3,315.00

2 209.60 Total acres applied for

Total $ $3,390.00

DO NOT WRITE BELOW TULS LINE

3. Land included in lease:

T. R. Meridian Stele County

T. 9 S, R. sec. 25

30 30 34 35

Fall River

1 E, BHM, SD ALL lots 1,2,3,4; E2,E2W2; NW,S2; N2,W2SW,N2SE County

Total acres in lease 2209.60 item,i nlabss 3315.00

This lease is issued granting the exclusive right to drill for, mine, extract, remove and dispose of all the oil and gas (except helium) in the lands described in Item 3 together with the right to build and maintain necessary improvements thereupon for the term indicated below, subject to renewal or extension in accordance with the appropriate leasing authority. Rights granted are subject to applicable laws, the terms, conditions, and attached stipulations of this lease the Secretary of the Interior's regulations and formal orders in effect as of lease issuance, and to regulations and formal orders hereafter promulgated when not inconsistent with lease rights granted or specific provisions of this lease

NOTE: fish lease Is Issued to the high bidder pursuant to hls/her duly executed bid or nomination form submitted under 43 CFR 3120 and Ls subject to the provisions of that bid or nomination and those specified on this form.

Type and primary term of lease

=Noncompetitive lease (ten years)

❑ Competitive lease (ten years)

(Title) (Date) July 1, 1996

0 Other EFFECTIVE DATE OP LEASE

4. (a) Undersigned certifies that (1) offerer is a citizen of the United Slates; :In association of strh citizens; a municipality; or a corporation organized alike the laws of the United States or of any

State or Tcnitory thereof; (2) all parties holding an interest in the offer are in compliance with 43 CFR 3100 and the leasing authorities; (3) of ferods chargeable interests, direct and indirect, in each

public domain and acquired lands separately in the same State, do not exceed 246,080 acres in oil and gas leases (of which up to 200,000 acres may be in oil and gas cptions), or 300,000 acres in leases in each leasing District in Alaska of which tan to 200,003 acres may be In options, (4) offeror is not considered a minor under the laws of the State in which the lands covered by this offer are located; (5) o fierce is in compliance with qualifications concerning Federal coal lease holdings provided in sec. 2(n)(2XA) of the Mineral Leasing Act; (6) offeror is in compliance with reclamation

requirements for all Federal oil and gas lease holdings as required by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation of sec. 41 of the Act.

(b) Undersigned agrees that signature to tffisr offer constitutes acceptance of this lease, including all teems, conditions, and stipulations of which offeror has been given notice, and any amendment or separate lease that may include any land described in this offer open to leasing at the time this offer was filed but omitted for any reason from this lease. The offerer further agrees that this offer cannot be withdrawn, either in whole or in part, unless the withdrawal is received by the proper third Stale Office before this lease, an amendment to this lease, or a separate lease, whichever covers the land described in the withdrawal, has been signed on behalf of the United Stoles.

This offer will be rake-led and wW afford offeror no priority if it Is no( properly completed and executed In accordance with the regulations, or if II Is not accompanied by the required payments. IS U.S.C. Sec. 1001 makes It • crime for any person knowingly and willfully to make to any Department or agency of the Urites any false faLse, BMus or fraudulent statements or representations at to any matter wit hin Its Jurisdiction.

/741/ day of c'l C_ 19 I9K Duly executed this

LEASE TERMS

Ad

(Signs/ ssee or Attorney-in-fact)

Scc. I. Rentals—Rentals shall be paid to proper office of lessor in advance of each lease year. Annual rental rates per acre or fraction thereof are:

(a) Noncompetitive lease. $1.50 for the first 3 years; thereafter $2.00;

(b) Competitive lease, 51.50; for the first 5 years; thereafter $2.00;

(c) Other, see attachment, or

as specified in regulations at the time this lease is issued.

If this lease or a ponion thereof is committed to an approved cooperative or unit plan which

includes a well capable of producing leased resources, and the plan contains a provision for

allocation of production, royalties shall be paid on the production allocated to this lease. However, annual rentals shall continue to be due at the rate specified in (a). (b). or (c) for those lands not within a panicipating area.

Failure to pay annual rental, if due, on or before the anniversary date of this lease (or next official working day if office is closed) shall automatically terminate this tease by operation of law. Rentals may be waived, reduced, or suspended by the Secretary upon a sufficient showing by lessee.

S. 2. Royalties—Royalties shall be paid to proper office of lessor. Royalties shall he computed

in accordance with regulations on production removed or sold. Royalty rates are:

(a) Noncompetitive lease, 121/2%;

ffil Competitive lease, 121/2%;

(c) Other, see attachment; or

as specified in regulations at the time this lease is issued.

Lessor reserves the right to specify whether royalty is to be paid in value or in kind, and the

right to establish reasonable minimum values on products after giving lessee notice and an

opportunity to be heard, When paid in value, royalties shall be due and payable on the last day

of the month following the month in which production occurred. When paid in kind, production

shall be delivered, unless otherwise agreed to by lessor, in merchantable condition on the premises

where produced without cost to lessor. Lessee shall not be required to hold such production in storage beyond the last day of the month following the month in which production occurred,

nor shall lessee be held liable for loss or destruction of royalty oil or other products in storage

from causes beyond the reasonable control of lessee.

Minimum royalty in lieu of rental of not less than the rental which otherwise would he required for that lease year shall be payable at the end of each lease year beginning on or after a discovery in paying quantities. This minimum royalty may be waived, suspended, or reduced, and the

above royalty rates may be reduced, for all or portions of this lease if the Secretary determines that such action is necessary to encourage the greatest ultimate recovery of the leased resources, or is otherwise justified.

An interest charge shall be assessed on late royalty payments or underpayments in accordance with the Federal Oil and Gas Royalty Management Ad of 1982 (FOGRMA) U.S.C. 1701). Lessee shall be liable for royalty payments on oil and gas lost or wasted from a lease site when such loss or waste is due to negligence on the part of the operator, or due to the failure to comply with any rule, regulation, order, or citation issued under FOGRMA or the leasing authority.

S. 3. Bonds—A bond shall be filed and maintained for lease operations as required under regulations.

S. 4. Diligence, rate of development, unitization, and drainage—Lessee shall exercise reasonable

diligence in developing and producing, and shall prevent unnecessary damage to, loss of, nr

waste of leased resources. Lessor reserves right to specify rates of development and production

in the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30 days of notice, if deemed necessary for proper development and operation of area, field, or pool embracing these leased lands. Lessee shall drill and produce wells necessary to protect leased

lands from drziruge or pay compensatory royalty for drainage in amount determined by lessor.

Sec. 5. Documents, evidence, and inspection—Lessee shall file with proper office of lessor,

not later than 30 days after effective date thereof, any contract or evidence of other arrangement

for sale or disposal of production. At such times and in such fonts as lessor may prescribe, lessee

shall furnish detailed statements showing amounts and quality of all products removed and sold.

proceeds therefrom, and amount used for production purposes or unavoidably lost. Lessee may

be required to provide plats and schematic diagrams showing development work and

improvements, and reports with respect to panics in interest, expenditures, and depreciation

costs. In the form prescribed by lessor, lessee shall keep a daily drilling record, a log. infomtation

on well surveys and tests, and a record of subsurface investigations and furnish copies to lessor

when required. Lessee shall keep open at all reasonable times for inspection by any authorized

officer of lessor, the leased premises and all wells, improvements, machinery, and fixtures thereon, and all books, accounts, maps, and records relative to operations. surveys, or investigations on or in the leased lank. Lessee shall maintain copies of all coma tales agreements, accounting records, and documentation such as billings, invoices, or sin, ,ocumentation that supports

costs claimed at manufacturing, preparation, and/or transporistion costs. All such records shall be maintained in lessee's accounting offices for future audit by lessor. Lessee shall maintain

required records for 6 years after they are generated or, if an audit or investigation is underway,

until released of the obligation to maintain such records by lessor.

During existence of this lease, information obtained under this section shall be closed to

inspection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552).

Sec. 6. Conduct of operations—Lessee shall conduct operations in a 'sworn/1st minimizes adverse

impacts to the land, air, and water, to cultural, biological, visual, and other resources, and to

other land uses or users. Lessee shall lake reasonable measures deemed necessary by lessor to

accomplish the intent of this section. To the extent consistent with lease rights granted, such

measures may include, but are not limited to, modification to siting or design of facilities, timing

of operations, and specification of interim and final reclamation measures. Lessor reserves the right to continue existing uses and to authorize future uses upon or in the leased lands, including the approval of easements or rights-of-way. Such uses shall be conditioned so as to prevent unnecessary or unreasonable interference with rights of lessee.

Prior to disturbing the surface of the leased lands, lessee shall contact lessor so be apprised

of procedures to be followed and modifications or reclamation measures that may be necessary.

Area to be disturbed may require inventories or special studies to determine the extent of impacts

to other resources. Lessee may be required to complete minor inventories or shoe term special

studies under guidelines provided by lessor. If in the conduct of operations, threatened or

endangered species, objects of historic or scientific interest, or substantial unanticipated

environmental effects are observed, lessee shall immediately contact lessor. Lessee shall cease any operations that would result in the destruction of such species or objects.

Sec. 7. Mining operations—To the extent that impacts from mining operations would be substantially different or greater than those associated with normal drilling operations, lessor

reserves the right to deny approval of such operations.

Sec. 8, Extraction of helium—Lessor reserves the option of extracting or having extracted helium from gas produCtion in a manner specified and by means provided by lessor at no expense or loss to lessee or owner of the gas. Lessee shall include in any contract of sale of gas the provisions of this section.

Sec. 9. Damages to property—Lessee shall pay lessor for damage to lessor's improvements.

and shall save and hold lessor harmless from all claims for damage or harm to persons or property as a result of lease operations.

Sec. 10. Protection of diverse interests and equal opportunity—Lessee shall: pay when due all taxes legally assessed and levied under laws of the State or the United States; accord all employees

complete freedom of purchase; pay all wages at least twice each month in lawful money of the United States; maintain a safe working environment in accorature with standard industry practices;

and take measures necessary to protect the health and safety of the public.

Lessor reserves the. right to ensure that production is sold at reasonable prices and to prevent monopoly. If lessee operates a pipeline, or owns controlling interest in a pipeline or a company operating a pipeline, which may be operated accessible to oil derived from these leased lands, lessee shall comply with section 28 of the Mineral Leasing Ad of 1920.

Lessee shall comply with Executive Order No. 11246 of September 24, 1965, as amended,

and regulations and relevant orders of the Secretary of Labor issued pursuant thereto. Neither lessee nor lessee's subcontractors shall maintain segregated facilities.

Sec. I1. Transfer of lease interests and relinquishment of (case—As required by regulations,

lessee shall file with lessor any assignment or other transfer of an interest in this lease. Lessee

may relinquish this lease or any legal subdivision by filing in the proper office a wrinen relinquishment, which shall he effective as of the date of filing, subject to the continued obligation

of the lessee and surety to pay all accrued rentals and royalties.

Sec, 12. Delivery of premises—At such time as all or portions of this lease are returned to lessor, lessee shall place affected wells in condition for suspension or abandonment, reclaim the land

as specified by lessor and, within a reasonable period of time, remove equipment and

improvements not deemed necessary by lessor for preservation of producible wells.

Sec. 11. Proceedings in case of default—If lessee fails to comply with any provisions of this

lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall

be subject to cancellation unless or until thc leasehold contains a well capable of production

of oil or gas in paying.quantitics, or the lease is corrunined to an approved cooperative or unit

plan or communitization agreement which contains a well capable of production of unitized

substances in paying quantities. This provision shall not be construed to prevent the exercise

by lessor of any other legal and equitable remedy, including waiver of the default. Any such

remedy or waiver shall not prevent later cancellation for the same default occurring at any other

time. Lessee slull be subject to applicable provisions and penalties of FOGRMA (30 U.S.C. 1701).

Sec. 14. 'leas and successors.' Interest—Each obligation of this lease shall extend to and he binding upon, and every be rreof shall inure to the heirs, executors, administrators, successors, beneficiaries, or I._ones of the respective panics hereto.

SDIA 85386

NOTICE TO LESSEE

Provisions of the Mineral Leasing Act (MLA) of 1920, as amended by the Federal Coal Leasing Amendments Act of 1976, affect an entity's qualifications to obtain an oil and gas lease. Section 2(a)(2)(A) of the MLA, 30 U.S.C. 201(a)(2)(A), requires that any entity that holds and has held a Federal coal lease for 10 years beginning on or after August 4, 1976, and who is not producing coal in commercial quantities from each such lease, cannot qualify for the issuance of any other lease granted under the MLA. Compliance by coal lessees with Section 2(a)(2)(A) is explained in 43 CFR 3472.

In accordance with the terms of this oil and gas lease with respect to compliance by the initial lessee with qualifications concerning Federal coal lease holdings, all assignees and transferees are hereby notified that this oil and gas lease is subject to cancellation if: (1) the initial lessee as assignor or as transferor has falsely certified compliance with Section 2(a)(2)(A) or (2) because of a denial or disapproval by a State Office of a pending coal action, i.e., arms-length assignment, relinquishment, or logical mining unit, the initial lessee as assignor or as transferor is no longer in compliance with Section 2(a)(2)(A). The assignee or transferee does not qualify as a bona fide purchaser and, thus, has no rights to bona fide purchaser protection in the event of cancellation of this lease due to noncompliance with Section 2(a)(2)(A).

Information regarding assignor or transferor compliance with Section 2(a)(2)(A) is contained in the lease case file as well as in other Bureau of Land Management records available through the State Office

issuing this lease.

Serial No SD Li 85 3 8 6 R2-FS-2820-1 3

NOT/GE FOR LANDS OF THE NATIONAL FOREST SYSTEM UNDER JURISDICTION OF

DEPARTMENT OF AGRICULTURE

The permittee/lessee must comply with all the rules and regulations of the Secretary of Agriculture set forth at Title 36, Chapter II, of the Code of Federal Regulations governing the use and management of the National Forest System (NFS) when not inconsistent with the rights granted by the Secretary of Interior in the permit. The Secretary of Agriculture's rules and regulations must be complied with for (1) all use and occupancy of the NFS prior to approval of an exploration plan by the Secretary of the Interior, (2) uses of all existing improvements, such as forest development roads, within and outside the area permitted by the Secretary of the Interior, and (3) use and occupancy of the NFS not authorized by an exploration plan approved by the Secretary of

the Interior.

All matters related to this stipulation are to be addressed

to: District Ranger

at: Fall River Ranger District 209 North River Hot Springs, SD 57747

Telephone: (605) 745-4107

who is the authorized representative of the Secretary of Agriculture.

NOTICE

CULTURAL AND PALEONTOLOGICAL RESOURCES - The FS is responsible for assuring that the leased lands are examined to determine if cultural resources are present and to specify mitigation measures. Prior to undertaking any surface-disturbing activities on the lands covered by the lease, the lessee or operator, unless notified to the contrary by the FS, shall:

1. Contact the FS to determine if a site specific cultural resource inventory is required. If a survey is required, then:

2. Engage the services of a cultural resource specialist acceptable to the FS to conduct a cultural resource inventory of the area of proposed surface disturbance. The operator may elect to inventory an area larger than the area of proposed disturbance to cover possible site relocation which may result from environmental or other considerations. An acceptable inventory report is to be submitted to the FS for review and approval at the time a surface disturbing plan of operation is submitted.

3. Implement mitigation measures required by the FS and ELM to preserve or avoid destruction of cultural resource values. Mitigation may include relocation of proposed facilities, testing, salvage, and recordation or

seriamo. SD M85386 NSO - PALEONTOLOGICAL RESOURCES

NO SURFACE OCCUPANCY STIPULATION

No surface occupancy or use is allowed on the lands described as:

T9S, R1E, B.H.M. Sec 30: portion of S2SW4 and S2NW4SW4 Sec 25: portion of W2 Sec 35: portion of NW4NW4, E2NE4, NE4SW4NE4, S2NW4NE4 As shown on attached parcel map

For the purpose of:

Protecting the physical manifestations and immediate environment of the site, including inherent historical, interpretive, educational, and recreational values for the area potentially impacted.

Waivers, exceptions, or modifications (WEM's) to this stipulation could be considered at the APD stage if the lessee could demonstrate, and further analysis concurred, that the values could be protected or preserved-while conducting operations within the NSO area

Any changes to this stipulation will be made in accordance with the fland use plan and/or the regulatory provisions for such changes. (For guidance on the use of this stipulation;see BLM manual 1624 and 3101 or FS Manual 1950 and 2820).

SOMA 85386

LEASE NOTICE

The following resources may occur within this lease parcel:

wooded draws, stock dams, floodplaIns/wetiands

In accordance with Section 6 of the lease terms and 43 CFR

3101.1-2, exploration and development activities may be

relocated a maximum of 200 meters to protect water quality.

Serial No.SD IA 85386 CSU - PALEONTOLOGICAL RESOURCES

CONTROLLED SURFACE USE STIPULATION

Surface occupancy or use is subject to the following special operating constraints.

(These constraints are a preliminary list of conditions which could be attached to an operating plan to meet agency objectives).

Engage the services of a paleontological resource specialist acceptable to the Forest Service to conduct a paleontological resource inventory of the area of proposed surface disturbance on lands described as:.

T9S, R1E, B.H.M. Sec 30: portion of N2SW4 and NE4SE4 SW4 Sec 35: portion of NE4NW4NW4, N2NE4, SW4NE4 As shown on attached parcel map

For the purpose of:

Protecting areas of potential paleontological resource.

Mitigation may include relocation of proposed operations by up to 200 meters (43 CFR 3101.1-2) or approved excavation, removal and protection of the paleontological resource prior to site disturb-ance.

Waivers, exceptions, or modifications (WEM's) to this stipulation will be considered only at the time operations are proposed, and will be subject to the Forest Land and Resource Management Plan In effect at the time of consideration, and will be subject to applicable regulatory and environmental compliance requirements. Granting of a WEM is a discretionary action which the operator should not routinely expect. The Forest Service reserves the right to impose other stipulations in the same area of this leasehold if a WEM is granted.

Any changes to this stipulation will be made in accc;dance with the land use plan and/or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM manual 1624 and 3101 or FS Manual 1950 and 2820).

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GREAT FACES. GREAT PLACES.

DEPARTMENT of ENVIRONMENT and NATURAL RESOURCES

OIL AND GAS PROGRAM 2050 West Main, Suite #1 Rapid City, SD 57702 Telephone 605-394-2229 FAX Number 605-394-5317

PERMISSION TO INSPECT

In compliance with ARSD 74:10:11:05 and SDCL 45-9, I do hereby grant the Secretary of the Department of Environment and Natural Resources, or his designated agent, permission to inspect all facilities, upon notification, at any time during the life of the permit or project.

Dated

Name A.J. STEIN

Operator STARTECH ENERGY CO P.

Location

SEPTEMBER 18, 1997

Title Drilling Superintendent

Township 30 South, Range 1 East, Section 30: NWSE

Subscribed and sworn to before me this 18th day of September, 1997

7Try )116)t)atitX)14026X.XXX BONNIE SIKSTROM A Commissioner for Oaths in and for the Province of Alberta

My Commission expires July 3, 2000

(SEAL)

RECE WEE)

FP 2 2 1997

DEPTOFFInONMENCAL RESOLMICES-PCP0

GREAT FACES. GREAT PLACES.

DEPARTMENT of ENVIRONMENT and NATURAL RESOURCES

2050 West Main, Suite #1 Rapid City, SD 57702 Telephone 605-394-2229 FAX Number 605-394-5317

STATE OF SOUTH DAKOTA BEFORE THE SECRETARY OF

THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

IN THE MATTER OF THE APPLICATION OF

STARTECH ENERGY CORP.

CERTIFICATION OF

APPLICANT (FACILITY NAME)

STAXIXDIXMI PROVINCE OF ALBERTA

Waniaiag CITY OF CALGARY

I NED STUDER, Secretary/Treasurer of the applicant in the above matter after being duly sworn

upon oath hereby certify the following information in regard to this application:

South Dakota Codified Laws Section 1-40-27 provides:

"The secretary may reject an application for any permit filed pursuant to Titles 34,4 or 45, including any application by any concentrated swine feeding operation for authorization to operate under a general permit, upon making a specific finding that:

(I) The applicant is unsuited or unqualified to perform the obligations of a permit holder based upon a finding that the applicant, any officer, director, partner or resident general manager of the facility for which application has been made:

Has intentionally misrepresented a material fact in applying for a permit;

Has been convicted of a felony or other crime involving moral turpitude;

Has habitually and intentionally violated environmental laws of any state or the United States which have caused significant and material environmental damage;

Has had any permit revoked under the environmental laws of any state or the United States; or

Has otherwise demonstrated through clear and convincing evidence of previous actions that the applicant lacks the necessary good character and competency to reliably carry out the obligations imposed by law upon the permit holder; or

(2) The application substantially duplicates an application by the same applicant denied within the past five years which denial has not been reversed by a court of competent jurisdiction. Nothing in this subdivision may be construed to prohibit an applicant from submitting a new application for a permit previously denied, V the new application represents a good faith attempt by the applicant to correct the deficiencies that served as the basis for the denial in the original application.

All applications filed pursuant to Titles 34A and 45 shall include a certification, sworn to under oath and signed by the applicant, that he is not disqualified by reason of this section from obtaining a permit. In the absence of evidence to the contrary, that certification shall constitute a prima facie showing of the suitability and qualification of the applicant. If at any point in the application review, recommendation or hearing process, the secretary finds the applicant has intentionally made any material misrepresentation of fact in regard to this certification, consideration of the application may be suspended and the application may be rejected as provided for under this section.

Applications rejected pursuant to this section constitute final agency action upon that application and may be appealed to circuit court as provided for under chapter 1-26."

Pursuant to SDCL 1-40-27, I certify that I have read the forgoing provision of state law, and that I am not disqualified by reason of that provision from obtaining the permit for which application has been made.

Dated this 18th day of September , 19 97

Applicant NED STUDER, Secretary/Treasurer of STARTECH ENERGY CORP.

Subscribed and sworn before me this M A day of September , 19 97

---;Or-ctiy-\71 , naDaryaktitx BONNIE SIKSTROM

A Commissioner for Oaths in and for my ciA..itsq6Auclji pefs: A I be r ta . July 3, 2000

(SEAL)

nEvariEn

3EFTOFFEV;flOMMEgr&WT 713CnrES-KNO

PLEASE ATTACH SHEET DISCLOSING ALL FACTS PERTAINING TO SDCL 1-40-27 (1) (a) THROUGH (c).

ALL VIOLATIONS MUST BE DISCLOSED, BUT WILL NOT AUTOMATICALLY RESULT IN THE REJECTION OF AN APPLICATION.

WELL INSPECTION / SCOUT REPORTS

NO WELL INSPECTION OR SCOUT REPORTS FOR THIS WELL

AS OF 5/20/2011

OPERATOR'S TECHNICAL

REPORTS / MAPS

COMPANY:

WELL:

LOCATION:

AREA:

WELL TYPE:

ELEVATION:

SPUDDED:

STATUS:

CASING:

TOTAL DEPTH:

CONTRACTOR

WELL SUMMARY

Startech Energy Inc.

Startech Federal 300901-1

NW SE (1660 FSL, 2481 FEL) Section 30, T. 9 S., It. 1 E. Fall River County, So. Dakota

Coffee Flats Quadrangle (U.S.G.S.)

Wildcat

KB 3847 GR 3836

January 21, 1998

P & A January 29, 1998

8 5/8 24# @ 459 w/295 sx

(Dr1r) 3666 feet

Farnsworth Drilling Rig #6 Derrick: Davis - 97 foot mast DrawworIci. Unit 34, 2-671 GMC's Pumps: 2- Oilwell P214's

Toolpusher: Drillers:

Art Peabody Mike Anderson Steve Phillips Ray Hartinger Bill Peck

TOTAL DEPTH REACHED: January 28, 1998

Logger 3667 feet

GEOLOGIST: Don Cardinal - Consulting Geologist (Casper, Wyoming)

DRILLING ENGINEER: Andy Peterson (Loveland, Colorado), Craig Camozzi (Denver, Colorado)

MUD LOGGER:

Terra Services - Portable (Wheatland, Wyoming)

MUD COMPANY:

Midas Drilling Fluids - Tim Dietrich (Fairview, Montana)

DRILLSTEM TESTER: None

WELL LOGS: Dual Laterolog - Microlaterolog - GR - 462 - 3664 Compensated Z Density - Neutron - GR - 2270 - 3628 Digital Acoustic - GR

462 - 3664

SAMPLES:

CORES:

TESTS:

10 Foot 2680 - 2840 3030 - 3666 Dry Cut - 2680 - 3666 Startech (Calgary): Dry Cut - So. Oak. Geol. Survey Vermillion, So. Dak. None

None

RECEIVED

MAR 26 1993

DEPT Of ENVIRONMENT N kTURAL

RESOURCE-8400

3

FORMATION TOPS AND DATUMS

(Datums based on Operators KB of 3847 feet)

FORMATIONS SAMPLE E-LOG DATUM Niobrara Sh. Surface Greenhorn Ls. 721 + 3126 Belle Fourche Sh. 745 + 3102 Mowry Sh. 1164 + 2683 Muddy Ss. 1361 + 2486 Skull Creek Sh. 1390 + 2457 Dakota (Fall River Fm.) 1566 + 2281 Lakota Fm. 1650 + 2197 Morrison Frn. 1852 + 1995 Sundance Fm. 2014 + 1833 Upper Canyon Spgs. Ss. 2296 + 1551 Lower Canyon Spgs. Ss. 2368 + 1479 Spearfish Fm. 2391 + 1456 Goose Egg Fm. 2592 + 1255 Forelle Ls. 2736 + 1111 Glendo Sh. 2759 + 1088 Minnekahta Ls. 2836 + 1011 Opeche Sh. 2873 + 974 Minnelusa (Converse) 3007 3008 + 839 1st Converse Arty 3066 3066 + 781 2nd Converse 3123 3120 + 727 3rd Converse 3314 3314 + 533 Red Shale Mkr 3411 3410 + 437 1st Leo 3430 3430 + 417 2nd Leo 3532 3534 + 313 3rd Leo 3609 3609 + 238 4th Leo 3652 NL + 195

Total Depth: 3666 (Mir) 3667 (Logger)

4

DRILLING DATA

PUMP DATE DEPTH RPM WT. PRESSURE SPM MUD WT VISCOSITY

1/20/98 174 120 10,000 600 61 H2O - 1/21/98 476 120 12-18000 650 61 H2O 1/22/98 476 - - - - - - 1/23/98 666 60 - 80 20,000 600 61 H2O 1/24/98 1866 80 - 140 20 - 30000 600 - 650 61 H2O 1/25/98 2838 80 30 - 35,000 650 - 750 61 H2O 1/26/98 2362 80 35,000 750 61 8.9 40 1/27/98 3650 80 35,000 850 61 8.9 - 9.0 47 - 58 1/28/98 3666 80 35,000 850 61 9.2 45

PIPE STRAP

Tally Board 3666 Strap (SLM) - 3666

DEVIATION

1/4 dgr. at 201 2 dgr. at 1637 3/4 dgr. at 476 1 dgr. at 2090 3/4 dgr. at 999 11/4 dgr. at 2561 2 dgr. at 1511 I dgr. at 3104

1 1/4 dgr. at 3666

MUD CHECK

DATE DEPTH WEIGHT VIS P.V. YP pH WL FC CL CA

1/24/98 693 8.3 H2O 9.5 500 800 1/25/98 1933 8.3 H2O 9.0 500 600 1/26/98 2815 8.3 H2O 8.5 500 800 1/27/98 3427 8.9 SS 17 20 8.0 8.0 1/32 500 800

5

WATER SATURATIONS

Formation Interval Pta Rw lit 0% Sw Remarks Upper Canyon Springs 2296 - 2303 5 0.30 17 - 13.5 11 - 14 100 - 90 Wet 2303 - 2305 1 13 13 80 Wet 2305 - 2308 2 16 - 13 14 - 8 100 Wet

Lower Canyon Springs 2370 - 2380.5 6 0.71 7 - 15 16 - 31 100 - 90 Wet 2380.5 - 2383 1 6.5 36 80 Wet 2383 - 2389 4 6 - 7.2 25 - 32 90 - 100 Wet

2nd Leo 3541 - 3546 2 1.3 120 - 33 10 - 12 100 Wet 3546 - 3554 2 27 -28 24 78 Wet 3554 - 2446 1 33 24 70 Wet

3556 - 3571 8 25 - 34 24 - 12 80 - 100 Wet

BIT RECORD

Bit No. Size Make Type Out Footage Hours Jets Serial # IA 121/4 HTC OSC - RT 476 476 121/4 3-12 RT 1 7 7/8 STC FDSH+ 1637 1161 17 3/4 3 - 13 LG 5729 2 7 7/8 STC F 15 H 3666 2029 71 1/4 3 - 13 LM8781

PLUGS

Permission to P&A granted by Allen J. 011ila, BLM , (Bismark, No. Dak.)1/28/98.

50 SX - 3360 - 3500 50 SX - 2950 - 3090 50 SX - 2260 - 2400 40 SX - 1500 - 1610

60 SX - 400 - 550 20 SX - Surface

6

WORK RECORD DISTRIBUTION IN HOURS

LII --

-

-.

LITHOLOGY

Formation tops aadjusted to E-Log depths; lithologic description interpreted from samples, drilling time and logs. All abbreviations follow AmStrat's Commonly Accepted Abbreviations. Shows are underlined.

depths. Sample description starts at 2680 feet in the Goose Egg Formation. Tops adjusted to Laterolog

From to Feet Description

2680 2709 29

2709 2736 27

2736 2744 8

2744 2759 15

2759 2767 8

2767 2778 11

2778 2836 58

2836 2840 4

3000 3008 8

GOOSE EGG FORMATION

Dol, anhy, sh & sltst intbd. Dol, win, vf-&l, sm crpxl, suc, flky, tt; anhy, wht, orng, nicid, dol, arg, biky, tt; sh, orng, sl dot, smth, sm grty, fis; cltst, bm-omg, arg, dol, blky.

Sh, bin-red, redoing, dol, sm slty, smth-grty, fis-blky; sltst, brn-red, arg, dol, biky.

TOP FORELLE LIMESTONE (Loa Top 2736)

Dol, pale omg-red, crpxl, Miry, U.

Anhy w/intbd sh. Anhy, wht-clr, mic-fxl; sh, orng-red, sm shy, smth, blky.

TOP GLENDO SHALE (Loa Top 2759)

Sh, red-brn, red omg, dol, smth, fis.

Sltst, It brn, dol, soft, fri.

Sh, w/intbd & intlam sltst. Sh, red-orng, bin-red, dol, sm grty, most smth, fis; sltst, redoing, dol, arg, soft.

TOP MINNEKAHTA LIMESTONE (Loa Top 28361

Ls, wht-crm, crpxl, chlky, soft.

Samples missing from 2840 - 3010. No sample bags on location.

TOP OPECHE SHALE (Loa Top 28731

Sh, red-brn, sl dol, slty, smth-grty, fis-blky; sltst, redoing, bin-red, arg, blky.

8

3008 3040 32

3040 3048 8

3048 3067 19

3067 3072 5

3072 3090 18

3090 3106 16

3106 3120 14

3120 3150 30

3150 3156 6

3156 3164 8

3164 3174 10

3174 3192 18

3192 3206 14

3206 3220 14

3220 3223 3

3223 3232 9

3232 3248 16

3248 3252 4

TOP MINNELUSA (Log Top 3008)

"1st CONVERSE"

Ss, Ise grns, omg, f-m, sbrd-rd, m-pr srtd probably gd-ex por, NS.

Anhy, wht-pale omg, crpxl, chlky and wht, v fad, suc; tr dol, wht-pale omg, cm/d, chlky.

Ss, abt Ise grs, pale omg, f-m, w srtd, sbrd-rd; ss, pale omg, vf-f, sbrd, sm clusters tt- sl por, NS.

Dol, wht-It gy, tan, crpxl, flky, U.

Anhy, wht, clear, vfxl, suc.

Anhy-dol intmxd. Anhy, wht, pnkclr, mic-fxl, suc; dol, pnk, red-brn, arg, anhy, fay, U.

Anhy-dol wan intbd sh; Anhy, wht-clr, fad, suc; dol, tan, pnk, brn, mar-brn, pale omg, crpxl, blky-flky; sh, bm-red, omg-brn, slty, blky.

TOP "2ND CONVERSE" (Log Top 3120)

Ss, omg, vf, sbrd, m srtd, dol, anhy7, blky, tt-fr por, NS; sltst brn-red, dol, arg, firm, blky.

Dol, wht, It tan-brn, crptd, dkr-arg, anhy Indus, flky-blky; anhy, wht-clr, fid, suc.

Sltst, bin-red, dol, arg, firm-hd, blky; sh, red-omg, shy, biky.

Ss, wht, vf-m, rd, m sad calc, dol, anhy, biky, U, NS.

Dol, tan-lt brn, micd, calc, blky, tt, pale gold min flor, NS.

Dol, It tan, It gy, It brn, tnictd, tr arg bin spots, anhy, blky, tt; anhy, wht, mic-vhd, suc, prob intnucd w/dol; tr cht, bm.

Ss, dol and anhy intbd. Ss, wht, vf, sbang, dol w/fltg grs; dol, wht-It gy, It tan !Inc-NI, anhy, blky, n; anhy, wht, vain.

Sh, brt red, bm-red, dol, sm shy, fis; tr sltst, bm-red.

Dol, It tan-brn, micxl, arg, sm clay; anhy, wht, vfxln.

Dol, Is, ltan-bm, crpxl-micx17, anhy, fay, tt; Is red-omg, crpxl, soft, flky; anhy, wht, clr, fxl, suc-amorp, blky.

Sh, brt red-omg, sm fltg f-m grs, dol, blky.

9

3252 3270 18

3270 3279 9

3279 3290 11

3290 3314 24

3314 3320 6

3320 3333 13

3333 3357 24

3357 3374 17

3374 3383 9

3383 3388 5

3388 3399 11

3399 3410 11

3410 3422 12

3422 3430 8

3430 3440 10

3440 3460 20

3460 3466 6

Anhy w/intmxd dol. Anhy, wht-clr, of-fxl, sue; dol, wht-tan, It bm, pale omg, sm chlky, gold, and tr wht min nor, NC.

Ss, brt red orng, vf-f, sbrd, dol, anhy, ft; sh, brt red omg, sm shy, most smth, fis-blky, tt

Dol and anhy. Dol, pale orng, crpxl, chlky, tt; anhy, wht-clr, of-fid, sue, bk.

Anhy w/inWsxd dol, Anhy, wht, ved, dol, suc; dol, wht, tan, pnk, crpxl, sm sdy w/fitg grs, anhy, fllcy, tt; sm wht min flor, NC.; tr cht, It gy-tan.

TOP "3RD CONVERSE" (Log Top 3314)

Dol, pale mar-brn, pale pnk, red-brn, arg; sm arg brn, red-brn splotches, bay; sh, red-brn, dol, blky.

Ss, brt red-omg vf-f, sbrd, m srtd, dol, U.

Ss and sh intbd. Ss, wht-pale omg, red-omg, vf-f, m, ang-sbang, p srtd, grs fltg in dol matrix; sh, red-brn, shy, dol, splty.

Doi, wht-lt gy, It tan, tr pnk, micxl, arg, sm anhy, flky blky, tt.

Ss, omg, vf, sbrd, dol, blky, U.

Sh, bm-red, shy, dol, firm, blky-fis.

Dol, predom wht-It gy, tan-brn, bm-red, crpxl, anhy inclus, sm arg red-brn splotches, blky, tt; anhy, wht, of-fid, suc, firm.

Ss, sh and dol. Ss, It gy-wht, vf-f, sbrd, p srtd, dol, firm, tt; sh, bm-red, sky, dol, firm; dol, gy, crm, tan, crpxl, anhy, tr arg w/omg, pnk, red-bin splotches.

TOP RED MARKER (Log Top 3410)

Sh, olive gm, brn-red-brn, soft, smth, satiny.

Ss, red-brn, vf-f, sbrd, m srtd, arg7, fri, tt, NS; sh, bik, irreg, blky, NF, instant wht cut;

TOP PENNSYLVANIAN 1ST LEO (Log Top 3430)

Dol, wht-lt tan, sm brn-dk gy, pnk, miod, intmxd anhy, blky, tt, NS.

Sltst pale gm-gy, dol, arg, bitty, tt, NFC; ss, wht-It gy, vf-f, m srtd, dot, fri, tt-gd por, NS. 3 UGK @ 3445.

Sh, blk, dol, blky, irreg, NF, slo strrna cut; sltst, gm-gy, dol, blky, U. 2 UGK @ 3461.

10

3466 3478 12

3478 3494 16

3494 3512 18

3512 3520 8

3520 3534 14

3534 3536 2

3536 3543 7

3543 3572 29

3556 Circ 15"

Circ 30"

Circ 45"

3572 3580 8

3580 3586 6

3586 3609 23

Dol, It gy, tan-brn incrsg, crpxl, anhy, blky, tt, pale gold, wht-min flor, NC.

Ss-sltst & sh intbd. Ss-sltst, It-m gy, vf, tr f-m, m sad, dol, "sparkly", tr w/blk arg lam, finn, tt, min flor, NC; sh, blk, blky, NF, wht disem cut when crushed.

Dol, m-dk gy, crpxl, arg, intmxd anhy, hd , blky, tt; dol, It tan, crpxl, ltd tt; tr cht, m-dk gy.

Ss It gy, vf-f, tr m, sbang-sbrd, m srtd, dol, v hd, tt; tr m gy, w/fltg grs; sh, blk, dol, blky NF, slo wht cut.

Dol, gy, tan, brn, mud, dkr-arg, anhy, blky, tt; ss, wht-it gy, vf-f, sbrd, m srtd, v dol, hd, bay, tt, NS.

TOP 2ND LEO (Log Top 35341

Sh, blk, dol, blky, NF, instant string wht cut to slo fin disem cut

Ss, wht-It gy, vf-f, sbrd-rd, m sad, v dol, finn-hd, tt, NFC.

Ss, wht-It gy, vf-f, sbrd-rd, dol, tr fri, most firm-hd, fr-good por, NFC.

CIRCULATED 45 MIN a 3556

60% dol, It gy, tan, brn, crpxl, arg (dkr), hd, blky, n, NS. 20% anhy, wht, of-fid, suc, blky, finn. 10% ss, wht-lt gy, vf-f, sbrd-rd, m srtd, v dol, firm-hd, tt NFC. 10% sh., blk, dol, blky, tt, NF slo disem wht cut when crushed.

70% dol, predom tan, brn & gy, crpxl, dkr-arg, anhy, blky, tt, NS., min flor. 10-20% anhy, wht, fxl, suc. 20% ss, win, It gy, vf-f sm f-m, v dol, It gy sl-m dol, sm fri w/fr-gd por, NS.

3609 3612 3

3612 3622 10

3622 3644 22

3644 3652 8

3652 3656 4

3656 3666 10

TOP 3RD LEO (Log Top 3609)

Sh, blk, sl-m dol, Rs-blky, NF, slo wht cut. 4 UM et 3609,

Dol, tan, brn-dk brn, crpxl, anhy, arg, biky, tr w/slo yel-wht strmg cut.

Dol, sh and tr ss intbd. Dol, it-m gy, crpxl, arg, anhy intmxd, blky, tt, NS; anhy, wht, vtd, suc; sh, blk, Ls, plo diffused wht cut slo cut when

crushed: < 5% ss, wht-lt gy, tan, vf-f, sm m, m-w srtd, dol, tt, gold mitt flor, NC 4 UGK 3630. 5 UGK @ 3638

Dol, tan-It brn, crpxl, anhy, flky-blky, hd, tt, NS;

Plugging Report for SDM85386

Well Number: 300901-1 Location: NWSE Sec 30 T9 R1,BH PM Field: Wildcat County: Fall River, State: So. Dak. ELM District Office: Dakotas Inspector: Kevin Weiler

Type of Well: Dry Hole

OPERATOR = Startech Energy

COMPANY REPRESENTATIVE = Craig Camozzi

RIG CONTRACTOR = Farnsworth # 6

WIRELINE COMPANY = N/A

6441.1.-COL4EIN1 0‘.44, TG-

CEMENT TYPE = Class "0"; Weight 18.8 lbs/gal; Yield 1.15 /sx

TOP OF CEMENT IN CASING AND OPEN HOLE ANNULUS (DEPTH) = N/A'

TUBING SIZE = 4" lbs/ft

NUMBER OF JOINTS IN THE HOLE ON 1ST PLUG = 112

AVERAGE TUBING LENGTH PER JOINT = 31.50 feet

KELLY BUSHING TO GROUND MEASUREMENT (KB) = 11 feet

CASING SIZE = Surface casing - N/A" - lbs/ft Intermediate casing - N/A" - lbs/ft Production casing - N/A" - lbs/ft

SURFACE CASING SHOE (depth) = 460'

COLLAPSED OR TIGHT SPOT IN CASING (depth) = N/A'

TOP AND BOTTOM OF FISH (depth) = N/A'

PLUGGING FLUID = 9# lbs/gal at viscosity

January 28, 1998

2030 hours = Leave DDO.

January 29, 1998

0330 hours = Arrive on location and were still logging hole. Finish logging and TIH w/ 112 jts. putting pipe 0 3500'. Roll hole.

1200 hours = Start, plugging. Pump a 50 sx (10.2) bbls slurry plug w/ 36 bbls displacement letting'plug balance.

TOC 0 3360'

Lay Down 13 jts. leaving 99jts. in hole putting end of pipe 0 3090'. Pump a ,50 sx plug (10.2) bbls slurry w/ 31 bbls displacement and let plug balance.

TOC @ 2950'

1730 hours =

1130 hours =

Lay Down 19 jts. leaving 80 jts in hole putting end of pipe @ 2490'. pump a 50 sx plug (10.2) bbls slurry W/ 24 bbls displacement and let plug balance.

TOC @ 2350'

Lay Down 28 jts .leaving 52 jts in hole putting end of pipe @ 1610'. Pump a 40 sx plug (8.2) bbls slurry w/ 16 bbls displacement and let plug balance.

TOC @ 1500'

Lay Down 34 jts. leaving 18 jts in hole putting end of pipe @ 550'. Pump a 60 sx plug (12.2) bbls slurry w/ 4 bbls displacement and let plug balance. Wait approx 4 hrs for cement to set up.

TIH and tag cement @ 483' Approx 23' below shoe. Mix and pump a 25 sx plug (5.1) bbls slurry w/ 4 bbls displacement and wait approx 4 hrs to tag. TIH and tag at 449'.

TOC @ 449'

Lay Down all but 2 jts and pump a 50' surface plug. LD 2 jts.

Leave location.

RECSIVED

f113 1 3 18 98

OEPT CF fi NATURA RE9009(..5.3 • PICK)

ADMINISTRATIVE / SUNDRY REPORTS

1 Sec-Twp-Rge or Block & Survey County PA-u_ kVE-Q SD

Approved Date

17;.4 S. ,3 p 4.111r 1— DO NOT RITE BEL W THIS LINE

County,

OIL AND

Subscribed and sworn to ll/Mere.

AS BOARD F HE STATE OF SOUTH DAKOTA MA

S. Dak. Oil & Gas Board PSI. C•.. n••11•

FORM 7

PLUGGING RECORD

kA' EM42(1N COO. 3$J3

SI u) A CAADA Operator Address

Name of Lease Well No. Field & Reservoir

St)M 931536 riu„ct ac+ I Fs I, Location of Well itg(Rd F8suic..71‘ s _ 9.„► Application to drill this well was filed in name of

STAtZlEck► ttoE0G \I cog) . Date plugged:

--komor9--q a() , ciciR)

Has this well ever produced oil or gas

NO Total depth

36)(DB

Character of well at completion (Initial production); Oil (bbls/day) Gas (MCF/day)

1\3( A- Amount well producing when plugged:

Oil (bbls/day) I Gas (IVICF/day)

Water (bbls./day)

Dry?

Name of each formation contain- ing oil or gas. Indicate which formation open to welt-bore at Q toe i.wlugugring iut .

Fluid content of each formation Depth interval of each formation

,5500 — 33100

Size, kind & depth of plugs used indicate zones squeeze cemented, giving amount cement.

.50 sx. OGASS G WNW i....OSA 30c10 1 - .245O

, -50 SI-

--t,5 y.,. J( .sr:c f3c sY...

cze sx._

(LASS G c,A,,tC1' et A,.Qc 6

c LAsS e

CAN\im) SPR-1,n)GS ,

a,21i-C,i) IL2F-1-

, ,

- g51'3 - 1500 14u,14u, Rola_

,

E 112 103

1 - 4151) - 01

CASING RECORD Size pipe

€±3 Sib Put in well (ft.)

Liliq'g(P Pulled out (ft.)

— Left in well (ft.)

41-4e - CI (V

Give depth and method of part- ing casing (shot,

ripped etc)

Packers and shoes

Was well filled with mud-laden fluid, according to regulations? Indicate deepest formation containing fresh water.

C-;•-ir In addition to other information required on this form, if this well was plugged back for use as a fresh water well, give all pertinent details of plugging operations to base of fresh water sand, perforated interval to fresh water sand, name and address of surface owner, and attach Letter from surface owner authorizing completion of this well as a water well and agreeing to assume full liability for any subsequent plug-ging which might be required.

PLU■ G FELT Q 450 f-1 03 4300 thQs RECEIVED

MAR 17 1998

DEPT 07 ENVIRONMENT & NATURAL. RESOURCES • RCRO

USE REVERSE SIDE FOR ADDITIONAL DETAIL

leect this the Akleg. day of LICLACk■-./ Ued of _ AbE9--. crttl Gio.u.aty of (2-1

, 194E

Signature of Affiant

Before me, the undersigned authority, on this day personally appeared known to me to be the person whose name is subscribed to the above instrument, who being by hoe duly sworn on oath tes, that he Is duly authorized to make the above report and that he has know'," of the f s s therein, and that said repo -Is t e and correct.

Saki,

My commission expires MY Commission Fawkes - d for _.. :2244422Ce-

STAT, •.0 ,O.. PaRlet

S. Dale. 011 i Gam Board • FORM 8

10140 0-. 02.1.krUAAV4' TITLE 11(01014° TOC440__C,A) DATE reibs 51 Ic/q5_ SIGNED

INDICATE BELOW BY CHECK MARK NATURE OF REPORT, NOTICE OR OTHER DATA

NOTICE

TEST WATER SHUT-OFF

FRACTURE TREAT

MULTIPLE COMPLETE

ABANDON

OF INTENTION TO: SUBSEQUENT REPORT OF:

SHOOT OR ACIDIZE

REPAIR WELL

WATER SHUT-OFF

1 — SHOOTING OR ACIDIZING

FRACTURE TREATMENT REPAIRING WELL

PULL OR ALTER CASING ALTERING CASING (Note: Report results of multiple completion on Well Completion or Recompletion and Log Form—Form 4) IX

DESCRIBE PROPOSED OR COMPLETED OPERATIONS (Clearly state all pertinent details, and give pertinant dates, including estimated date of starting any proposed work)

SPUD 01-1-TE -14\m‘042\1 a0,1°Ick$

Suitc/sic cAstIQG', IC ..4TS• i sie, 11 .244 -1-55 4-c-- 1°61° (. 444•cfb) SET ct) 143.aq' c,-vitv,krreo 029S SAC 46 cL.AS G 3% cc-L- :/i1 4 FS

42E1.0;'. --ANUAR\I IclotB

Th-rPL 3(06t i MPT1-1:

LX kekkILD'.

c,u,gawr sror-rui:

DLL- Ma..• GA-zOL- ci0 - GR-cDAL A-m.011G

krXiQUAL-

31,2as - Qd70 6bloi - '1122'

i)RILLW A-ND -PeBANMNtO

I hereby certl that the foregoing as to any work or operation performed is a true and correct report of such work or operation.

MAR 2 3 1998 Approved

Date

CONDITIONS, IF ANY:

DO NOT WRITE BELOW THIS LINE

O G BO _THE STATE OF SOUTH DAKOTA

--commodev AVIA 11/1111111% 1

OPERATOR uJtLOCAT

COUNTY

so

FARM OR LEASE NAME

SUNDRY NOTICES AND REPORT ON WELLS 3.9M 8 53 0(v

❑ OIL WELL ❑ GAS WELL pA DRY

STP(RxscV, pvstG\I eteP- ADDRESS

A i/ • (In feet from nearest line of section or I ga subdivi on, where poss • e)

Moo' Fgt.- and ac.ig( 61- (Nmss.) sec.,Tion) 30, TctS 844M

ELEVATIONS (D.F., R.K.B., FLT., GRD., etc.; how determined)

GOAT 01V' 3$11

.0 Lt1 a 1 1111

WELL NO.

STPacECA - edeAa) 8 Otctt I -

FIELD AND POOL, OR WILDCAT

• • OCATI

NO. ACRES IN LEASE

i40 Y. SEC. TWP. RGE.

n308E Ste, 30 Tqs- 4.ie

CORRESPONDENCE

err STARTECH

ENERGY INC.

Suite 2600 Sunlife Plaza - North Tower 140 - 4 Avenue S.W. Calgary, Alberta T2P 3N3

Telephone: (4031 231-2300 Facsimile: [403) 262-2980

November 4, 1997

Department of Environment and Natural Resources Oil and Gas Program 2050 West Main, Suite 1 Rapid City, South Dakota U.S.A. 57702

Attention: Mr. Fred Steece

Dear Sir;

RE: Application for Permit to Drill STARTECH - FEDERAL # 300901-1 NW/SE-Sec.30, T95-RIE, BHM Buffalo Gap National Grasslands ( USDF )

Kindly accept this letter in support of Startech Energy Inc.'s above noted Application.

Startech Energy Inc. hereby advises, pursuant to SDCL 45-9-58 of the Conservation Regulations, that there are no interested or affected public parties within one half mile of the subject well location. Both the mineral and surface rights are federally held.

Therefore; no Notices are required to be provided under the above noted regulation.

We trust you will fmd the foregoing to be in order.

Yours Very Truly,

STARTECH ENERGY INC.

Bruce E. Riep Senior Surface Landman

RECETVED

NOV 6 199?

DEPT OF EttiiR7■IMEhrt & NAIIJRA. RESOURCES - RC-140

CC: A.J. Stein

MISCELLANEOUS

NO MISCELLANEOUS INFORMATION FOR THIS WELL

AS OF 5/20/2011

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