Drilling at good ROP's yesterday. A small loss of circulation at 2038 m which was sealed with mica and nut-shells. In the late afternoon additional fractures were intersected with increased losses of drilling fluid. At this time the fluid was changed from mud to water. We re now pulling out of hole (POOH). The BHA has been severed, this occured at 00:50 this morning. TD is 2074 m.