169930v1 0 PDF

COG Operating LLC
550 W Texas Ave

Midland, TX, 79701
US
CUATRO HIJOS FEE 008H

SCHARB
LEA County, NM, US
API/UWI 30-025-42468-00
SEC: 17,TWP: 19,RNG: 35
19-Stage Stimulation Cost Estimate

Proposal 169930 - Version 1.0
May 08, 2015
Prepared for:
Todd Cage
Submitted by:
Ayodeji Daramola
125 W Missouri Ave Ste 300
Midland, TX - 79701-5204
USA
COG Operating LLC
Contents
1 Foreword ...............................................................................................................................................................................3
2 Cuatro Hijos Fee #8H............................................................................................................................................................4
2.1 Executive Summary ......................................................................................................................................................4
2.2 Well Details...................................................................................................................................................................5
2.2.1 Wellbore ................................................................................................................................................................5
2.2.2 Tubulars.................................................................................................................................................................5
2.2.3 Perforations ...........................................................................................................................................................5
2.2.4 Formations.............................................................................................................................................................6
2.2.5 Parameters .............................................................................................................................................................7
2.3 Procedure.......................................................................................................................................................................8
2.3.1 Job Fluids ..............................................................................................................................................................8
2.3.2 Job Totals ............................................................................................................................................................10
2.3.3 Treatment Interval 1 ............................................................................................................................................11
2.3.12 Treatment Interval 10 ..........................................................................................................................................38
2.4 Cost Estimate ..............................................................................................................................................................68
3 Conditions ...........................................................................................................................................................................71
4 Appendix .............................................................................................................................................................................72
4.1 Gold Medal Standards.................................................................................................................................................72
4.2 LOTO ..........................................................................................................................................................................73
Proposal 169930 v 1.0

CONFIDENTIAL 2 / 73
2015 Halliburton All Rights Reserved
COG Operating LLC
1 Foreword
Halliburton appreciates the opportunity to present

this cost estimate and looks forward to being of service to you.
MIDLAND SALES OFFICE

1-800-844-8451
ODESSA DISTRICT HOBBS DISTRICT
1-800-417-5096 1-800-416-6081
CEMENTING: CEMENTING:
Steve Luscombe / Joe Briseno Louis Sosa / Jaime Gonzales
Teddy Johnson / Mike Kilgore Clay Erwin
STIMULATION: STIMULATION:
Robert Rodriguez Robert Rodriguez
John Perez / Juan Jimenez John Perez / Juan Jimenez
LOGGING & PERFORATING: LOGGING & PERFORATING:

Xavier Emiliano / Raul Gutierrez Daniel Heitz / John Harrison
TOOLS & TESTING, PROD. SVCS, TOOLS & TESTING, PROD. SVCS,
TCP, COMPL. PRODUCTS: TCP, COMPL. PRODUCTS:
Steve Engleman / Kevin Warren Jim Tillman / Doak Shannon
COILED TUBING: DRILL BITS:

Quincy Cole Whit McWilliams / Kellan Zindel
BAROID: ARTIFICIAL LIFT:

Clint McCoy / Elijio Vela John Wright / Jeff Wilhelm
SPERRY:
David Oakley / David Carroll
.

CONFIDENTIAL 3 / 73
COG Operating LLC
2 Cuatro Hijos Fee #8H

2.1 Executive Summary
Job Summary
Number of Treatment Intervals 19
Casing Treating Pressure Calculated: 7332.8 psig
Casing Treatment Rate 80.0 bbl/min
Hydraulic Horsepower Casing (recommended) 21000.00 hp
Total Estimated Pumping Time 29.27 hr
Total Estimated On-Location Time 4 days
Pad Percentage 25.65 %
BH Rate 80.0 bbl/min
Total System Requirement

7.5% NEFE Acid 111000 Gal
Hybor G - R(15) 940500 Gal
Treated Water 294116 Gal
Water Frac G - R(15) 855000 Gal
Water Frac G - R(3) 1132685 Gal
Total Customer Supplied

FRESH WATER 3222301 Gal

CONFIDENTIAL 4 / 73
COG Operating LLC
2.2 Well Details

2.2.1 Wellbore
Wellbore Details
Top MD: 0 (ft) Top TVD: 0 (ft)

Bottom MD: 13638 (ft) Bottom TVD: 9845 (ft)
H2S Present: Unknown
CO2 Present: Unknown
WellBore Condition
BH Static Temperature: 148.0 (degF)
2.2.2 Tubulars
Name Measured Depth (ft) Outer Inner Linear Grade

Diameter Diameter Weight
(in) (in) (lbm/ft)
Production Casing 0 - 13638 5.500 4.892 17.00 P-110
2.2.3 Perforations
Name Top Bot Top Bot Shot Number Phase Hole

MD MD TVD TVD Density of Perfs (DEG) Diameter
(ft) (ft) (ft) (ft) (spf) (in)
Stage #1 - 1st Bone 13455 13585 0 0 6.00 36 60.00 0.430
Spring
Stage #2 - 1st Bone 13260 13390 0 0 6.00 36 60.00 0.430
Spring
Stage #3 - 1st Bone 13078 13195 0 0 6.00 36 60.00 0.430
Spring
Stage #4 - 1st Bone 12980 13040 0 0 6.00 36 60.00 0.430
Spring
Stage #5 - 1st Bone 12873 12945 0 0 6.00 36 60.00 0.430
Spring
Stage #6 - 1st Bone 12678 12797 0 0 6.00 36 60.00 0.430
Spring
Stage #7 - 1st Bone 12500 12546 0 0 6.00 36 60.00 0.430
Spring
Stage #8 - 1st Bone 12374 12466 0 0 6.00 36 60.00 0.430
Spring
Stage #9 - 1st Bone 12186 12284 0 0 6.00 36 60.00 0.430
Spring
Stage #10 - 1st Bone 11954 12120 0 0 6.00 36 60.00 0.430
Spring

CONFIDENTIAL 5 / 73
COG Operating LLC
Name Top Bot Top Bot Shot Number Phase Hole

MD MD TVD TVD Density of Perfs (DEG) Diameter
(ft) (ft) (ft) (ft) (spf) (in)
Stage #11 - 1st Bone 11776 11894 0 0 6.00 36 60.00 0.430
Spring
Stage #12 - 1st Bone 11570 11676 0 0 6.00 36 60.00 0.430
Spring
Stage #13 - 1st Bone 11394 11505 0 0 6.00 36 60.00 0.430
Spring
Stage #14 - 1st Bone 11164 11310 0 0 6.00 36 60.00 0.430
Spring
Stage #15 - 1st Bone 10980 11115 0 0 6.00 36 60.00 0.430
Spring
Stage #16 - 1st Bone 10790 10922 0 0 6.00 36 60.00 0.430
Spring
Stage #17 - 1st Bone 10546 10670 0 0 6.00 36 60.00 0.430
Spring
Stage #18 - 1st Bone 10358 10465 0 0 6.00 36 60.00 0.430
Spring
Stage #19 - 1st Bone 10098 10268 0 0 6.00 36 60.00 0.430
Spring
2.2.4 Formations
Name / Depth (ft) Pore Press. (psig) BHST (degF) Frac Gradient (psi/ft)
1st Bone Spring Sand / 10098 - 13585 148.0 0.750

CONFIDENTIAL 6 / 73
COG Operating LLC
2.2.5 Parameters
Parameters
Rate 80 bpm
Anticipated WHTP 5600 psi
Maximum Allowable WHTP 8500 psi
Treat Via 5-1/2 Casing
Average TVD in Lateral 9,845
KOP 9,411
EOC 10,330 @ TVD 9,924
BHST 148 deg F
Anticipated Frac Gradient (psi/ft) 0.75
Halliburton to supply
- 111,000 gallons of 7.5% NEFE Acid
- 9,500 lb of Scalechek SCP-2 (500 lb/stg)
3rd Party to supply
- 4,598 lb of Parasorb (242 lb/stg)
- 806 gallons of Scaletrol (0.25 gpt the whole job)
Displacement & flush volume(s) to be determined on location

CONFIDENTIAL 7 / 73
COG Operating LLC
2.3 Procedure
2.3.1 Job Fluids
Hybor G - R(15)/ 940500.0 (Gal)
Base Fluid FRESH WATER 940500 (Gal) Biocide BE-6 10.00 (lbm)
1000.00 (gal/Mgal) 0.01 (lbm/Mgal)
Biocide BE-9 471.00 (Gal) Clay Control CLA-Web 471.00 (Gal)
0.50 (gal/Mgal) 0.50 (gal/Mgal)
Breaker SP Breaker 236.00 (lbm) Crosslinker CL-31 471.00 (Gal)
0.25 (lbm/Mgal) 0.50 (gal/Mgal)
Surfactant LOSURF-360 471.00 (Gal) Breaker Optiflo-III 941.00 (lbm)
7.5% NEFE Acid/ 111000.0 (Gal)
Base Fluid HCL ACID 111000 (Gal) Surfactant LOSURF-360 111.00 (Gal)
Corrosion HAI-OS 222.00 (Gal)
Inhibitor 2.00 (gal/Mgal)
Water Frac G - R(15)/ 855000.0 (Gal)
Base Fluid FRESH WATER 855000 (Gal) Biocide BE-9 428.00 (Gal)
Biocide BE-6 9.00 (lbm) Breaker Optiflo-III 214.00 (lbm)
0.01 (lbm/Mgal) 0.25 (lbm/Mgal)
Clay Control CLA-Web 428.00 (Gal) Surfactant LOSURF-360 428.00 (Gal)
Breaker SP Breaker 18.00 (lbm)
0.02 (lbm/Mgal)

CONFIDENTIAL 8 / 73
COG Operating LLC
Water Frac G - R(3)/ 1132685.0 (Gal)
Breaker Optiflo-III 284.00 (lbm) Biocide BE-9 567.00 (Gal)
Breaker SP Breaker 23.00 (lbm) Surfactant LOSURF-360 567.00 (Gal)
Clay Control CLA-Web 567.00 (Gal)
0.50 (gal/Mgal)
Treated Water/ 294116.0 (Gal)
Biocide BE-9 148.00 (Gal) Surfactant LOSURF-360 148.00 (Gal)
Clay Control Cla-Sta(R) XP 883.00 (Gal) Clay Control CLA-Web 148.00 (Gal)

CONFIDENTIAL 9 / 73
COG Operating LLC
2.3.2 Job Totals
Fluids
Biocide BE-6 41.00(lbm) Scale Control Scalechek Scp-2 Scale Inhibitor 9501.00(lbm)
Additive
Defoamer D-AIR 3000L 524(Gal) Biocide BE-9 1614(Gal)
Clay Control CLA-Web 1614(Gal) Breaker SP Breaker 277.00(lbm)
Crosslinker CL-31 471(Gal) Surfactant LOSURF-360 1725(Gal)
Breaker Optiflo-III 1439.00(lbm) Corrosion HAI-OS 222(Gal)
Inhibitor
Clay Control Cla-Sta(R) XP 883(Gal)
Proppants
Designed Qty Requested

Common White-100 Mesh, SSA-2 190000 (lbm) 190000(lbm)
CRC Premium-40/70 617500 (lbm) 617500(lbm)
CRC Premium-30/50 2137500 (lbm) 2137500(lbm)
Customer Supplied Items

Designed Qty Tank Bottom Requested with Tank Bottom
FRESH WATER 3222301 (Gal) 0 (Gal) 3222301(Gal)

CONFIDENTIAL 10 / 73
COG Operating LLC
2.3.3 Treatment Interval 1
CUATRO HIJOS
Well Name FEE/008H Water Frac G - R(3) 59615
Job Name Cuatro Hijos Fee #8H Hybor G - R(15) 49500
Mid Perf MD 13520(ft) Water Frac G - R(15) 45000
No. of Perfs/Jets 36 7.5% NEFE Acid 3000
Estimated Pump Time 60.70(min) Treated Water 5000
Common White-100 Mesh,
BHST 148.0(degF) SSA-2 10000
Max. Pressure Allowed 8500.0(psig) CRC Premium-40/70 32500
Frac Gradient 0.750 (psi/ft) CRC Premium-30/50 112500
Hybor G - R(15) Additive Tuning

Base Fluid Scale Control Additive Defoamer
(lbm/Mgal) (gal/Mgal)
FRESH WATER Scalechek Scp-2 Scale D-AIR 3000L
Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0
Water Frac G - R(15) Additive Tuning

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25
CASING Surface Pumping Schedule

COG Operating LLC
Trt- Rate- Proppant

Stage Desc. Clean Vol. Prop. Mass
Fluid Desc. Liq+Prop Proppant Conc.
Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
1-1 Breakdown Treated Water 15.0 5000 0.00 0
1-2 Acid Spearhead 7.5% NEFE Acid 15.0 3000 0.00 0
1-3 Pad Water Frac G - R(3) 80.0 12500 0.00 0
1-4 Sand Slug Water Frac G - R(3) 80.0 2500 Common White-100 Mesh, SSA-2 0.50 1250
1-5 Pad Water Frac G - R(3) 80.0 10000 0.00 0
1-7 Pad Water Frac G - R(3) 80.0 10000 0.00 0
1-9 Pre-Pad Water Frac G - R(3) 80.0 5000 0.00 0
1-10 Pad Water Frac G - R(15) 80.0 12500 0.00 0
1-11 Proppant Laden Fluid Water Frac G - R(15) 80.0 10000 CRC Premium-40/70 0.50 5000
1-14 Proppant Laden Fluid Hybor G - R(15) 80.0 17500 CRC Premium-30/50 1.50 26250
1-18 Pre-Flush Hybor G - R(15) 80.0 2000 0.00 0
1-19 Flush Water Frac G - R(3) 80.0 9615 0.00 0
Totals 162115 155000
Liquid HHP Single Flowpath

CASING
BHTP Fracture Gradient x Mid Interval Depth( TVD) 0.750 (psi/ft) x 9845 (ft) 8667.1 (psig)
Ph Fluid Density x Mid Interval Depth (TVD) x 0.05195 8.33 (lbm/gal) x 9845 (ft) x 0.05195 4747.6 (psig)
Pf Friction Loss in Pipe @ rate 2671.4 (psig)
Ppf Friction Loss in perfs @ rate 742.0 (psig)

COG Operating LLC
Pw BHTP - Ph + Pf + Ppf 8667.1 (psig) - 4747.6 (psig) + 2671.4 (psig) + 742.0 7332.8 (psig)
(psig)
HHP (Liquid) (Pw x Rate) / 40.8 Required on Location 7332.8 (psig) x 80.0 (bbl/min) / 40.8 14378.06 (hp)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
2-1 Pump-In Treated Water 10.0 2000 0.00 0
2-2 Spot Acid 7.5% NEFE Acid 10.0 3000 0.00 0
2-3 Displacement Treated Water 10.0 9062 0.00 0
2-4 Shut-In 0.0 0 0.00 0
2-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
2-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
2-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
2-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
3-4 Shut-In 0.0 0 0.00 0
3-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
3-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
3-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
3-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
4-4 Shut-In 0.0 0 0.00 0
4-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
4-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
4-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
4-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
5-4 Shut-In 0.0 0 0.00 0
5-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
5-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
5-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
5-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
6-4 Shut-In 0.0 0 0.00 0
6-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
6-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
6-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
6-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
7-4 Shut-In 0.0 0 0.00 0
7-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
7-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
7-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
7-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
8-4 Shut-In 0.0 0 0.00 0
8-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
8-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
8-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
8-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
Mid Perf MD 12235(ft) 7.5% NEFE Acid 6000
No. of Perfs/Jets 36 Treated Water 16062
Estimated Pump Time 94.18(min) Water Frac G - R(15) 45000
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
9-4 Shut-In 0.0 0 0.00 0
9-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
9-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
9-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
9-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
10-4 Shut-In 0.0 0 0.00 0
10-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
10-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
10-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
10-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
11-4 Shut-In 0.0 0 0.00 0
11-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
11-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
11-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
11-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
12-4 Shut-In 0.0 0 0.00 0
12-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
12-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
12-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
12-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
13-4 Shut-In 0.0 0 0.00 0
13-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
13-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
13-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
13-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
Job Name Cuatro Hijos Fee #8H Water Frac G - R(15) 45000
Mid Perf MD 11237(ft) 7.5% NEFE Acid 6000
No. of Perfs/Jets 36 Treated Water 16062
Estimated Pump Time 94.18(min) Hybor G - R(15) 49500
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
14-4 Shut-In 0.0 0 0.00 0
14-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
14-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
14-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
14-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
15-4 Shut-In 0.0 0 0.00 0
15-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
15-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
15-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
15-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
16-4 Shut-In 0.0 0 0.00 0
16-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
16-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
16-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
16-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
17-4 Shut-In 0.0 0 0.00 0
17-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
17-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
17-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
17-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
18-4 Shut-In 0.0 0 0.00 0
18-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
18-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
18-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
18-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
CUATRO HIJOS
BHST 148.0(degF) SSA-2 10000

Inhibitor
0 - 17500 7.692 0.25
17500 - 42500 7.692 0.5
42500 - 47500 0 0.5
47500 - 49500 0 0

Inhibitor
0 - 12500 0 0
12500 - 22500 0 0.25
22500 - 45000 7.692 0.25

COG Operating LLC
Trt- Rate- Proppant

Stage (Gal) (lbm)
(bbl/min) (lbm/gal)
19-4 Shut-In 0.0 0 0.00 0
19-7 Pad Water Frac G - R(3) 80.0 12500 0.00 0
19-9 Pad Water Frac G - R(3) 80.0 10000 0.00 0
19-11 Pad Water Frac G - R(3) 80.0 10000 0.00 0
19-14 Pad Water Frac G - R(15) 80.0 12500 0.00 0
Totals 176177 155000

CASING

COG Operating LLC
(psig)
(Recommended:
21000.00 (hp))

COG Operating LLC
2.4 Cost Estimate

Unit
Mtrl Nbr Description Qty UOM Gross Amt Discount $ Net Amount
Price
PE BOM-Gelled Water Frac -
342341 1.00 JOB 0.00 0.00 0.00
Conventional
Solution pricing line items
PE FRACTURING SOLUTION SERVICE
CHARGE
FRACTURING -SOLUTION SERVICE
224401 19.00 JOB 11,500.00 218,500.00 154,042.50
CHARGE
Svc-Commodity / Global Discount:
64,457.50
BARRELS/CUBIC METRES (BBL/M3) BBL
RATE PER BBL\CUM 80
PRESSURE UNITS (PSI/MPA/BAR) PSI
PRESSURE 5600
Material line items
SBM HYBOR G (VIS)
Hybor G - R(15)
756645 940,500.00 GAL 5,325.00 5,008,162.50 4,870,438.03 97,095.75
40,628.72
UNIT OF MEASURE - VISCOSITY VSC
VIS 15
SBM WATER FRAC G (VIS)
Water Frac G - R(3)
756646 1,132,685.00 GAL 2,400.00 2,718,444.00 2,643,686.79 52,703.83
22,053.38
VIS 3
SBM WATER FRAC G (VIS)
Water Frac G - R(15)
756646 855,000.00 GAL 4,800.00 4,104,000.00 3,991,140.00 79,566.30
33,293.70
VIS 15
SBM Fe Acid
7.5% NEFE Acid
341772 111,000.00 GAL 9.31 1,033,410.00 930,069.00 72,855.40
30,485.60
UNIT OF MEASURE - % %
PERCENT ACID 7.5
Chem-HAI-OS, 260 gal tote tank
HAI-OS, 330 GAL TOTE TANK
101366650 (101366650) 222.00 GAL 200.00 44,400.00 39,960.00 3,130.20
1,309.80
CHEM,BE-6 BACTERIACIDE, 48 LB
FIBER DRUM
100003800 24.00 LB 333.35 8,000.40 7,200.36 564.03
BE-6, 48 LB FIBER DRUM (100003800)
Svc-Commodity / Global Discount: 236.01
CHEM, BE-9, TOTE TANK
BE-9, TOTETANK (101718550)
101718550 1,612.00 GAL 240.00 386,880.00 348,192.00 27,275.04
11,412.96
CHEM,LOSURF-360, 330 GALLON
TOTE
LOSURF-360, 330 GALLON
102231312 1,723.00 GAL 137.50 236,912.50 213,221.25 16,702.33
TOTE(102231312)
6,988.92
CHEM, CL-31, 330 GAL TOTE TANK
CL-31, 330 GAL TOTE (101295976)
101295976 471.00 GAL 260.57 122,728.47 110,455.62 8,652.36
3,620.49

COG Operating LLC
Unit
Price
CHEM, CLA-WEB - TOTE
CLA-WEB - TOTE (101985045)
101985045 1,612.00 GAL 474.30 764,571.60 688,114.44 53,902.30
22,554.86
CHEM-OPTIFLO-III DELAYED
RELEASE
100003801 OPTIFLO-III (100003801) 1,438.00 LB 89.59 128,830.42 115,947.38 9,082.54
3,800.50
CHEM-CLA-STA XP - TOTE TANK
CLA-STA(R) XP (100003733)
100003733 883.00 GAL 211.16 186,454.28 167,808.85 13,145.03
5,500.40
CHEM-SCALECHEK SCP-2 SCL
INHIB,50LB DRM
SCALECHEK SCP-2 SCALE
101710151 9,500.00 LB 61.28 582,160.00 523,944.00 41,042.28
INHIBITOR, 50 LB DRUM (101710151)
17,173.72
CHEM-SP BREAKER - 10# BOX
100003624 SP BREAKER, 10# (100003624) 275.00 LB 39.20 10,780.00 9,702.00 759.99
Chem-D-Air 3000L, Tote Tank
D-AIR 3000L, TOTETANK (101396181)
101396181 523.00 GAL 140.55 73,507.65 66,156.89 5,182.29
2,168.47
Sand-Common White-100 Mesh, SSA-2,
bulk
SAND - PREMIUM - 100 MESH, BULK,
100003676 1,900.00 SK 150.00 285,000.00 270,037.50 10,548.56
SK (100003676)
4,413.94
Sand-CRC Premium-40/70, bulk
SAND-CRC PREMIUM-40/70, BULK
101357964 (101357964) 617,500.00 LB 2.75 1,698,125.00 1,507,085.94 134,682.54
56,356.52
SAND, CRC PREMIUM - 30/50, BULK
SAND-CRC PREMIUM30/50, BULK
101822155 (101822155) 2,137,500.00 LB 2.75 5,878,125.00 5,216,835.94 466,208.79
195,080.27
Solution pricing master line items
PE SAND TRANSPORTATION CHARGE
905010 Svc-Commodity / Global Discount: 29,450.00 CWT 0.90 26,505.00 18,686.02
7,818.98
PE PROPPANT HANDLING/STORAGE
SOL CHARGE
216319 Proppant Handl & Stor. Sol Chg Per lb 2,945,000.00 LB 0.09 265,050.00 245,171.25 14,014.52
5,864.23
PE PROPPANT DEL SOL CHARGE PER
TON MILE
216318 Proppant Del Sol Chg, per ton mile 88,350.00 TNM 4.05 357,817.50 330,981.19 18,919.60
7,916.71
Additional Items
PE REMOTE DATA TRANSMISSION
18402 SETUP CHARGE 1.00 EA 2,837.00 2,837.00 2,624.23 150.00
NUMBER OF UNITS 1

COG Operating LLC
Unit
Price
PE RTRS-DATA TRANSMISSION 2HR
97821 MIN/ADD HR 19.00 EA 1,180.00 22,420.00 20,738.50 1,185.46
HR/DAY/WEEK/MTH/YEAR/JOB/RUN H
HOURS OR FRACTION (MIN2) 1
PE INSITE Anywhere Srvc per job, per day
231877 1.00 JOB 1,446.00 5,784.00 5,350.20 305.83
DAYS OR PARTIAL DAY(WHOLE NO.) 4
PE STIMULATION REGISTRY FEE
683872 1.00 EA 1,000.00 1,000.00 705.00
UNIT OF MEASURE - STAGE STG
PROCESSING PER STAGE/PLUS ADDT 19
426460 PE Customer Funded Bonus 1.00 EA 12,000.00 12,000.00 12,000.00
372628 Administration fee 1.00 EA 3,000.00 3,000.00 3,000.00
Total Gross Amount 24,185,405.32
Total Item Discounts 22,324,861.36
Total Svc-Commodity / Global Discount: 544,435.47
Total Net Amount USD 1,316,108.49
Contract Name: PB_HOBBS_NM_PE_FR Contract#: 0040820513

AC_070114-123114 Price Book Ref: PERMIAN BASIN
Primary Plant: Hobbs, NM, USA Price Date: 1/1/2013
Secondary Plant: Hobbs, NM, USA

COG Operating LLC
3 Conditions
The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30 days
from the date of this proposal. In order to meet your needs under this proposal with a high quality of service and
responsive timing, Halliburton will be allocating limited resources and committing valuable equipment and
materials to your area of operations. Accordingly, the discounts reflected in this proposal are available only for
materials and services awarded on a first-call basis. Alternate pricing may apply in the event that Halliburton is
awarded work on any basis other than as a first-call provider.
The unit prices stated in the proposal are based on our current published prices. The projected equipment,
personnel, and material needs are only estimates based on information about the work presently available to us.
At the time the work is actually performed, conditions then existing may require an increase or decrease in the
equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the time the work
is performed and the amount of equipment, personnel, and/or material actually utilized in the work. Taxes, if any,
are not included. Applicable taxes, if any, will be added to the actual invoice.
It is understood and agreed between the parties that with the exception of the subject discounts, all services
performed and equipment and materials sold are provided subject to Halliburtons General Terms and Conditions
contained in our current price list, (which include LIMITATION OF LIABILITY and WARRANTY provisions),
and pursuant to the applicable Halliburton Work Order Contract (whether or not executed by you), unless a
Master Service and/or Sales Contract applicable to the services, equipment, or materials supplied exists between
your company and Halliburton, in which case the negotiated Master Contract shall govern the relationship
between the parties. A copy of the latest version of our General Terms and Conditions is available from your
Halliburton representative or at: http://www.halliburton.com/terms for your convenient review, and we would
appreciate receiving any questions you may have about them. Should your company be interested in negotiating a
Master Contract with Halliburton, our Law Department would be pleased to work with you to finalize a mutually
agreeable contract. In this connection, it is also understood and agreed that Customer will continue to execute
Halliburton usual field work orders and/or tickets customarily required by Halliburton in connection with the
furnishing of said services, equipment, and materials.
Any terms and conditions contained in purchase orders or other documents issued by the customer shall be of no
effect except to confirm the type and quantity of services, equipment, and materials to be supplied to the
customer.
If customer does not have an approved open account with Halliburton or a mutually executed written contract
with Halliburton, which dictates payment terms different than those set forth in this clause, all sums due are
payable in cash at the time of performance of services or delivery of equipment, products, or materials. If
customer has an approved open account, invoices are payable on the twentieth day after date of invoice.
Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest lawful
contract rate applicable, but never to exceed 18% per annum. In the event Halliburton employs an attorney for
collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account, plus all collection
and court costs.

COG Operating LLC
4 Appendix
4.1 Gold Medal Standards
Gold MedalTM Onsite Fracturing Quality

Assurance Standards
Quality Programs Tailored to Treatment Requirements
Gold Medal Level 1 - Halliburton standard fracturing QA procedures

Pre-job Testing - Prior to pumping, each frac tank will be strapped and tested for specific gravity,
pH, and temperature. A sample will be taken from each tank and tested with Gelling Agent for viscosity
and crosslink time. A composite fluid sample will be tested with chemicals from location.
Proppant Validation - Provide proppant sieve analysis. If proppant does not meet acceptable
standards, each compartment will be tested individually.
Pre-job Inventory - Prior to the start of the job, the Inventory Control Form will be filled out with
beginning volumes of all chemicals and frac fluid on location. Proppant storage should be visually
inspected and compared to weight tickets.
Job Testing and Recording - Fluid and chemicals should be physically strapped every 5,000 gallons
or as often as possible. Samples of the pad, first, middle, and final proppant stages will be taken along
with corresponding proppant samples.
Real Time QA Requirements - In addition to normal treatment displays of rate, pressure, net
pressure, and sand concentration, the following parameters will be displayed and recorded: pH, fluid
temperature, viscosity, and all additive rates.
Post-job Reports - In addition to the standard treatment playbacks, each treatment report will contain
the following: Pre-job Quality Assurance Form; Inventory Form; Proppant Inventory Form; Cumulative
Additive Schedule; Weight Tickets; Chart of Viscosity, pH, and Chemical Additive Rates.
Gold Medal Level II - Designed for engineering design and improvement in real time, Level II includes
Level I plus onsite FRACPROTM, and on-site pumping diagnostic tests, and remote data transmission.
Gold Medal Level III - Designed to meet the requirements of critical wells, Level III includes Level II
plus on-site Fann-50 rheology testing
.
Setting the industrys standard for fracturing quality wasnt
enough...so we raised it!

COG Operating LLC
4.2 LOTO
Technical Discussion
Lock Out / Tag Out Process

In an effort to reduce the possibility of an unintended release of well pressure into Halliburton iron
connected to the well head, Halliburton is instituting a Lock Out / Tag Out process. The purpose of
implementing this process is to verify that well bore energy isolation is maintained as required for the
safe conduct of our operations.
This process includes the following areas:
A Lock and/or Tag will be the first Halliburton equipment installed at the well-head prior
to a rig-up or rig-down operations. Whenever the well-head master valve is in a closed
position, it will be Locked and Tagged.
When using a remote operated master valve, power hoses must be disconnected (and if
permitted by the customer locked out) at the control panel when the valve is in the
closed position. This applies to remote operated valves provided by 3rd parties and
those from Halliburton.
The rig-up and rig-down procedure used will make the connection of our iron at the well-
head the last operation in rig-up and first operation when rigging down to reduce
exposure time to the potential pressure present at the well-head.
Should immediate flowback of treatment fluids be necessary, Halliburton recommends utilizing

a third party who specializes in flowback activity. Halliburton iron and manifolding is not to be
used for flowback purposes. Should a screen out occur and flowback, pumping or circulating
is desired, prudent and safe procedures should be followed. This includes using rig-up
procedures sufficient for the volumes and pressures to be encountered as well as Lock and/or
Tag Out process when the well control valves(s) are closed.


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COG Operating LLC

550 W Texas Ave

CUATRO HIJOS FEE 008H

19-Stage Stimulation Cost Estimate

Proposal 169930 v 1.0

Halliburton appreciates the opportunity to present

MIDLAND SALES OFFICE

LOGGING & PERFORATING: LOGGING & PERFORATING:

COILED TUBING: DRILL BITS:

BAROID: ARTIFICIAL LIFT:

Proposal 169930 v 1.0

2 Cuatro Hijos Fee #8H

Total System Requirement

Total Customer Supplied

Proposal 169930 v 1.0

2.2 Well Details

Top MD: 0 (ft) Top TVD: 0 (ft)

Name Measured Depth (ft) Outer Inner Linear Grade

Name Top Bot Top Bot Shot Number Phase Hole

Proposal 169930 v 1.0

Name Top Bot Top Bot Shot Number Phase Hole

Proposal 169930 v 1.0

Displacement & flush volume(s) to be determined on location

Proposal 169930 v 1.0

Hybor G - R(15)/ 940500.0 (Gal)

7.5% NEFE Acid/ 111000.0 (Gal)

Water Frac G - R(15)/ 855000.0 (Gal)

Proposal 169930 v 1.0

Water Frac G - R(3)/ 1132685.0 (Gal)

Treated Water/ 294116.0 (Gal)

Proposal 169930 v 1.0

2.3.2 Job Totals

Designed Qty Requested

Customer Supplied Items

Proposal 169930 v 1.0

2.3.3 Treatment Interval 1

Hybor G - R(15) Additive Tuning

Water Frac G - R(15) Additive Tuning

CASING Surface Pumping Schedule

Proposal 169930 v 1.0

Trt- Rate- Proppant

Liquid HHP Single Flowpath

Proposal 169930 v 1.0

Proposal 169930 v 1.0

2.3.4 Treatment Interval 2

Hybor G - R(15) Additive Tuning

Water Frac G - R(15) Additive Tuning

CASING Surface Pumping Schedule

Proposal 169930 v 1.0

Trt- Rate- Proppant

Liquid HHP Single Flowpath

Proposal 169930 v 1.0

Proposal 169930 v 1.0

2.3.5 Treatment Interval 3

Hybor G - R(15) Additive Tuning

Water Frac G - R(15) Additive Tuning

CASING Surface Pumping Schedule

Proposal 169930 v 1.0

Trt- Rate- Proppant