SIDEWINDER DRILLING RIG 122 CLEBURNE COUNTY, ARKANSAS

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SIDEWINDER DRILLING RIG 122 CLEBURNE COUNTY, ARKANSAS March, 2015 Infrared Inspection Report Sidewinder Drilling Rig 122 Company Contact Jesse Russell Project: 07090315 2605 CHARTER OAK DRIVE, LITTLE ROCK, AR 72227 PHONE: 800-737-1787 & 501-228-5001 FAX: 501-228-5001 EMAIL: dick@usscanman.com

ORDER OF REPORT CONTENTS 1: Data To Facilitate Understanding & Utilizing Scan Report 2: Scan Results Overview & Action Taken Form 3: Identified Faulting Conditions, Information & Photographs 4: List Of Facility Equipment Identified By The Customer Representative & Notations Of Faulting Conditions Found DISCLAIMER This report and the recommendations contained in it are based upon conditions and practices observed and information made available to United Spectrographics personnel. This report does not purport to list all hazards or faulty conditions. It is not intended to indicate that other hazards or faulty conditions do not exist. Severity ratings in the report are based on the criteria shown in this report and are intended as guidelines only. No responsibility is assumed for the control of the facility s condition, maintenance practices or correction of conditions indicated herein. By issuing this report, neither United Spectrographics nor any of its employees makes any warranty, expressed or implied, concerning the contents of this report. Furthermore, neither United Spectrographics nor any of its employees shall be liable in any manner (other than liability that may be expressed in any policy of insurance that may be issued by United Spectrographics) for personal injury or property damage or loss of any kind arising from or connected with this inspection or failure to inspect.

Utilizing Report Contents Included in this report are Photographs and Thermographs of problem areas found during our recent Infrared Inspection of your facility. Each problem area picture is accompanied by: Date Location Information Temperature Calculations Color-coded Temperature Intensity and/or Condition Significance Data A Brief Comment Relating The Item In The Photograph To Its Corresponding Thermograph Suggested Corrective Recommendations. In most cases, problems (faults) found will be listed according to the date and order that they were located, rather then by significance or priority, as we feel that you and/or your personnel can best judge this, keeping in mind circuit importance and thermograph intensity. Thermal intensity is indicated by use of a color-coded data inserts that locate a fault s position on the standard electrical failure curve. The color of the insert represents the temperature range of the hottest item, or a portion of the item's circuitry, pointed out in the thermograph. The temperature ranges which the colored inserts represent are grouped as follows: INSERT Red Orange Yellow Green Temperature Range 70ºC/126ºF and higher above Ambient Operating Temp. 40ºC/72ºF to 69ºC/124ºF above Ambient Operating Temp. 25ºC/45ºF to 39ºC/70ºF above Ambient Operating Temp. *10ºC/18ºF to 24ºC/43ºF above Ambient Operating Temp. ( * See page 4)

Determining Cost Effective Responses Electrical equipment failures generally follow a standard mechanical/electrical failure curve. Dividing the failure curve into temp. ranges and locating a problems position on the curve allows us to indicate the probable time to its failure. Knowing a problems probable time to failure allows you to make a cost effective response to the problem areas that we locate. Below is a depiction of the electrical fault failure curve with the thermal intensity ranges and the colors that we assign to faults detailed in our reports. STANDARD ELECTRICAL FAULT FAILURE CURVE (Does Not Include Area In Blue) MINOR INTERMEDIATE SERIOUS CRITICAL DEVICE TEMP IS AMBIENT, BUT DEVICE IS EITHER FAULTY OR UNSAFE. 10ºC * 18ºF 25ºC 45ºF 40 C 72ºF 70 C 126ºF AMBIENT TEMP YEARS MONTHS MONTHS TO WEEKS WEEKS TO NOW FAULTY EQUIP Built In Trend Monitoring When yearly scans are accomplished, report results allow you to trend monitor your electrical equipment without having to cross reference previous report findings. If a previous years problem is not repaired it will show up again in the current scan report and its current intensity range indicates a current effective response.

Defining Total Temperature and Ambient Operating Temperature And Explanation For Their Use Total Temperature: Total Temperature = Ambient Operating Temperature + Fault temperature Allows you, the customer, to evaluate possible damage to equipment. Leads fail between 90ºC/194ºF and 110ºC/230º Phenolic fails around 200ºC/392ºF Transformers and Motor Insulation failure temperature depends on insulation class rating. Contacts start to fail around 130ºC/266ºF Ambient Operating Temperature (AOT*) for Infrared Scanning Purposes: Temperature within a device container (Box or Cabinet) that is not directly affected by faulting component = Normal Equipment Operating Temperature Contained By Box or Cabinet. If there is no container (Example: Device mounted to a wall) it is the temperature adjacent to the device not affected by the fault. Allows you, the customer, to determine if device will operate at intended amperage. Most switchgear is rated to operate at approximately 40ºC/104ºF (Industrial) to 50ºC/122ºF (Marine) If AOT is enough above normal rated temperature, either of the following conditions can cause an unanticipated trip. 1. An intermittent high load. 2. A minor (Green) or intermediate (Yellow) fault. Report pages with photographs: PH stands for Visible Light Photograph TH stands for Infrared Light Thermograph * AOT stands for Ambient Operating Temperature Both black & white and color infrared thermographs are presented to better depict the fault condition.

In addition to the corrective response time frame suggested below and the failure curve located on the previous page, you may want to consider using the military standard responses presented below. Military Standard For Evaluating Faults Located In Electrical Equipment Utilizing Temperature Data Obtained With Infrared Imaging Equipment: Temperatures rise above Ambient Operating Temperature: *10ºC/18ºF to 24ºC/43ºF component failure unlikely, but corrective measures required at next scheduled routine maintenance period or as scheduling permits. (Green Label) 25ºC/45ºF to 39ºC/70ºF component failure probable, unless corrected. (Yellow Label) 40ºC/72ºF to 69ºC/124ºF component failure almost certain, unless corrected. (Orange Label) 70ºC/126ºF and above component failure imminent. Immediately inform the person responsi ble for continued operation of equipment. (Red Label) Note: United Spectrographics uses a Blue Label to indicate faults that require attention due to either ambient temperature (Ex: Phase Not Operating), faulty equipment elements or unsafe conditions. * Note: Temperature conditions below 10ºC/18ºF rise above AOT are not considered significant enough to record and are usually not included in the reports. Fault Correction Recommendation When Our Source Assessment Is Inaccurate: When a fault is indicated in a connection or component and examination by your electrician does not turn up a loose connection or faulty component where we have indicated, a fault does exist. The electrician should continue to investigate the next connection or component to be found in the direction that the heat is coming from until a source is located. Example: If a molded case breaker line side lead connection lug is indicated as a fault source and is found to be secure, but not frozen in place, look for a loose connection or sign of over temp. in the lead holder lug.

SCAN RESULTS OVERVIEW PROMPT ATTENTION ITEMS: Because of: 1. The intensity or heat level indicated at the time of the scan. 2. Deterioration caused by excessive temperature not present at the time of the scan. 3. Physical condition irregularities observed at the time of the scan. We recommend that the following faults be given prompt attention: Faults: #1 Items With Asterisks Have High Total or Ambient Operating Temperatures. United Spectrographics March, 2015

SUMMARY OF FINDINGS FAULTS BY CATEGORY NUMBER OF FAULTS FAULT NO./ITEM NO. MINOR 1 2/1 INTERMEDIATE 0 0 SERIOUS 1 1/14 CRITICAL 0 0 SERIOUS 0 0 Number of items located on rig: 22 Number of faults: 2

ACTION TAKEN Sidewinder Drilling Rig 122 Cleburne County, Arkansas March, 2015 Fault # Item # Category Repaired Monitor Date Name 1 14 Serious 2 1 Minor

PROJECT: 07090315 CUST REP: Tim SCAN REP: Isamu Charleston DATE: March 9 th, 2015 LOCATION: Air Compressor Area Control Cabinet For: Sullivan Air Compressor Motor Control Labeled: MS1 PH # 1 > ITEM: SOURCE: TEMP: Bø of Motor Control Contact Block Line side lead holder connection lug. And/Or Line side internal contact area or related buss connection lug. Temp. of area indicating a faulting condition is: 80ºC / 176ºF Total Temp - 40ºC / 104ºF AOT = 40ºC / 72ºF above AOT. TH # 1 > COMMENTS Abnormal heat is being generated in motor control connection. See orange arrows in PH#1 and TH#1. TH # 1 > Loose and/or corroded contact area. Clean, inspect and re-secure serviceable components. TEMPERATURE ABOVE AOT 40 C / 72 F

PROJECT: 07090315 CUST REP: Tim SCAN REP: Isamu Charleston DATE: March 9 th, 2015 LOCATION: Hydraulic Area Control Cabinet For: Top Drive Hydraulic Unit 3ø Fused Circuit Labeled: Main Power < PH # 2 ITEM: SOURCE: TEMP: Bottomø Fuse Block Load side lead connection lug. Temp. of connection and lug is: 34ºC / 93ºF Total Temp. - 17ºC / 63ºF AOT = 17ºC / 30ºF above AOT. < TH # 2 < TH # 2 COMMENTS Abnormal heat is being generated in fuse block connection. See green arrows in PH#2 and TH#2. Loose and/or corroded contact area. Clean, inspect and re-secure. TEMPERATURE ABOVE AOT 17 C / 30 F

AREA EQUIPMENT LIST Following is a list of the electrical equipment located on the Sidewinder Drilling, Rig 122, Cleburne County, Arkansas, and data relating to its operating condition at the time the scan was performed. NOTE: Items noted as visually inspected were not operational or show no visible load at the time of the inspection. No. Equipment Oper. Visually Inspected HYDRAULIC AREA Fault # 1 Top Drive HPU Control Cabinet X 2 GENERATOR HOUSE 2 Panel #1 480/277 Volt Distribution Panel 3 Panel #2 480/277 Volt Distribution Panel X 4 208/120 3PH 208/120 Volt Distribution Panel X 5 Unlabeled 200 Amp GE Fuse Disconnect X 6 75KVA Square D 3ø Transformer X 7 480 3PH 480 Volt Distribution Panel X 8 Plug Connections X 9 Generator 1 & 2 Throw Switch X 10 Generator #1 Motor Leads X 11 Generator #1 Main Breaker X 12 Generator #2 Motor Leads X 13 Generator #2 Main Breaker X AIR COMPRESSOR AREA 14 Sullivan Compressor Control Cabinet X 1 MUD MIXER AREA 15 Mud Mixer #1 Control Cabinet X 16 Mud Mixer #2 Control Cabinet X OFFICE TRAILER ELECTRICAL AREA 17 Unlabeled 200 Amp Square D Disconnect X 18 75 KVA GE 3ø Transformer X 19 EDGE 240/120 Volt Distribution Panel X 20 Burton Controls 208/120 Volt Distribution Panel X

No. Equipment Oper. Visually Inspected 21 Plug Boards X Fault # 22 Unlabeled 30 Amp Eaton Fuse Disconnect X