EAST TEXAS DRILLING

DEVELOPMENTAL

Gregg County

The Oneok Texas Energy Resources LP is preparing to drill a new well to a depth of 11,300-feet in the White Oak (Cotton Valley Sand) Field. The well will be located 0 miles Within direction from Longview and will lie in the Hathaway, H Survey, A-88. The well is to be known as the J. D. Davis “E” GU Well No. 10.

Rusk County

A Wildcat Field will see more production as El Paso Production Co. prepares to drill the Cobra #1 Well No. 3 to a depth of 10,950-feet. The location of the well will be 6.13 miles southeast from Henderson in the Weathers, A Survey, A-864. The well may also be drilled in the Minden (Cotton Valley) Field or the Jarrell Creek (Travis Peak) Field.

The Fischer Well No. 1 will be drilled by The Houston Exploration Co. in the Henderson, East (Cotton Valley) Field. The well will bottom at 11,200-feet in the O’Hair, A W Survey, A-615 and will be located 5.1 miles southwest from Henderson. The well may also be drilled in a Wildcat Field.

In a lease 3.1 miles southeast from Henderson, the Wilkins 1 Gas Unit Well No. 11 will be drilled by El Paso Production Co. The well will be drilled to a total depth of 10,950-feet in the Carmel, M Survey, A-158. The well will be located in a Wildcat Field and may also be drilled in the Minden (Cotton Valley) Field, the Minden (Transitional) Field or the Henderson, South (Travis Peak) Field.

A Wildcat Field will see more production. The Gilson Well No. 1 will be drilled to reach a depth of 11,000-feet and will be drilled by Arena Resources, L.L.C. The well will be located 2.8 miles southwest from Henderson in the Jones, T Survey, A-450. The welay also be drilled in the Henderson, East (Cotton Valley) Field.

PMO will drill the Brooks Well No. 1 in the Oak Hill (Cotton Valley) Field to a depth of 11,000-feet. The well will be located 2.2 miles south from Henderson in the James Smith Survey, A-709. The total depth will be 11,000-feet. The well may also be drilled in the Easton, North (Cotton Valley) Field.

The St. Mary Land & Exploration Co. is preparing to drill two additional wells in the Walkers Chapel (Pettit 8100) Field. The wells are designated the Sheppard Well No. 1H and the Lowe 1H Unit Well No. 1. The Well No. 1H will have a depth of 8,350-feet 1.9 miles southeast from New Salem. The well will lie in the W.R. Warnell Survey, A-822. The Well No. 1 will have a total depth of 8,273-feet 2.4 miles west from New Salem. The well will lie in the Davis, Johm E Survey, A-248.

In a lease 3.6 miles east from Henderson, Chinn Exploration Co. is preparing to drill the Ballenger, “D” Well No. 5 to a depth of 11,000-feet. The well will be in a Wildcat Field and will lie in the W.T. Davis Survey, A-231. This well may also be drilled in the Henderson, East (Cotton Valley) Field.

Smith County

In a lease 0.7 miles northeast from Troup, the Moore Well No. 4 will be drilled in the Overton (Cotton Valley Sand) Field. The well will bottom at 12,000-feet and will lie in the Edson Gee Survey, A-10. The operator incharge of drilling is Encore Operating, L.P.

The Kickapoo Creek Gas Unit 1 Well No. 17 will be drilled in the Overton (Cotton Valley Sand) Field. The well will be located 2.1 miles northeast from Troup in the Phillip Lively Survey, A-567 and will bottom at 12,200-feet. The well may also be drilled in a Wildcat Field.

Tarrant County

Grand Operating, Inc. will drill the Seger Well No. 1 to a depth of 7,300-feet in the Newark, East (Barnett Shale) Field. The well will be located five miles east from Azle in the Reed, I N Survey, A-1314.

The Reichlet Well No. 1H will be drilled in the Newark, East (Barnett Shale) Field by XTO Energy Inc. The well will be located 0.9 miles southwest from Kennedale in the Shelby CSL Survey, A-1375. Total depth will be 11,000-feet.

In a lease 2.9 miles northwest from Benbrook in the Newark, East (Barnett Shale) Field, Sullivan Hollis R. Inc. is preparing to drill an additional well. The well is to be known as the Dab Well No. 3H. The well lie in the GH&H RR CO/ Munro, H JR Survey, A-1865.

Upshur County

A Wildcat Field will see more production. The Johnson Unit Well No. 1 will be drilled by Burk Royalty Company, Ltd. The well will bottom at 13,000-feet and will be located 13 miles northeast from Gilmer in the Anderson, C Survey, A-14. The well may also be drilled in the Cedar Springs (Cotton Valley, Lower) Field.

The Apache Corp. is preparing to drill a new well to a depth of 14,000-feet. The well will be in the Cherokee Trace (Jur. Bradshaw) Field 6.8 miles northeast from Gilmer. The well will lie in the John Stephens Survey, A-449. The well is designated the Wright “A” Well No. 2. This well can also be drilled in a Wildcat Field.

Wood County

J-O’B Operating Co. will drill the Tipperary “A” Well No. 2 in the Quitman (Sub-Clarksville) Field to a depth of 9,000-feet. The well will be located 3.3 miles northwest from Quitman in the Robbins, J Survey, A-484. The well may also be drilled in a Wildcat Field or the Quitman (Woodbine) Field.

COMPLETIONS

Gregg County

When gauged on a 20/64-inch choke, the Houston Stephens GU Well No. 9 potentialed 1.184 million cubic feet of gas. The well is located within the city limits of White Oak in the White Oak Field. Oneok Texas Energy Resources drilled the well to a depth of 11,077-feet. The Houston Stephens GU Well No. 8 potentialed 461,000 cubic feet of gas when gauged on a 20/64-inch choke. The well is located within the city limits of White Oak in the White Oak Field. Total depth of this well is 10,918-feet.

Oneok Texas Energy Resources has completed the Houston Stephens GU Well No. 7. The well is located within the city limits of White Oak in the White Oak Field. The well bottoms at 11,179-feet and potentialed 479,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley Sand formation.

Harrison County

In a lease five miles south from Marshall, in the Ware Field, the Harris, Dr. Well No. 3 has been completed. Comstock Oil & Gas, LP drilled the well. When gauged on a 24/64-inch choke the well potentialed 1.100 million cubic feet of gas. Production is in the Cotton Valley formation.

When gauged on a _-inch choke, the Vaughn Well No. 1 potentialed 60,000 cubic feet of natural gas. The well is located one mile south of Waskom in the Longwood Field. Hopewell Operating, Inc. drilled the well to a depth of 2,504-feet. Production is in the Goodland Lime formation.

The Allen Well No. 1 has been completed in the Tatum, North Field by EnCana Oil & Gas (USA) Inc. The well is located five miles southeast from Hallsville and bottoms at 10,610-feet. The well was gauged on a 20/64-inch choke and potentialed 1.385 million cubic feet of gas. Production is in the Cotton Valley formation.

O’Benco, Inc. has filed the first completion report for the Jenkins “A” Well No. 4 in the Blocker Field. The well is located nine miles south of Marshall and bottoms at 10,250-feet. The well was gauged on a 18/64-inch choke and potentialed 955,000 cubic feet of gas. Production is in the Cotton Valley formation.

In a lease 4.5 miles north northeast from Hallsville in the Hallsville Field, the Loftis G.U. Well No. 9 has been completed by Owl Creek Production Company, Inc. The well bottoms at 10,900-feet and potentialed 921,000 cubic feet of gas when gauged on a 34/64-inch choke. Production is in the Cotton Valley formation.

Henderson County

When gauged on a 18/64-inch choke, the OGU (MC & Suggett -25) Well No. 202 potentialed 2.320 million cubic feet of gas. XTO Energy Inc. drilled the well 3.9 miles east northeast of Murchison in the Opelika Field. The well bottoms at 11,980-feet and production is in the Cotton Valley formation.

The Fairway Field has seen more production. The Fairway (James Lime) Unit Well No. 447-3 has been completed by Hunt Oil Co. to a depth of 10,230-feet. The well was gauged on a 48/64-inch choke and potentialed 470,000 cubic feet of natural gas. Location of the well is 2.5 miles northeast from Poynor. Production is in the James Lime formation.

Nacogdoches County

In a lease 15 miles northeast from Nacogdoches, in the Naconiche Field, the Temple-Inland Gas Unit Well No. 1 has been completed by Chesapeake Operating, Inc. The well bottoms at a total depth of 8,950-feet and potentialed 800,000 cubic feet of gas when gauged on a 26/64-inch choke. Production is in the Travis Peak formation.

The Naconiche Creek Field has seen more production. The BRG Gas Unit Well No. 3 has been completed by Chesapeake Operating, Inc. The well is located 4.5 miles southeast from Garrison and reaches a depth of 8,950-feet. The well potentialed 1.179 million cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Travis Peak formation.

The Rambin Gas Unit “B” Well No. 2 has been completed in the Naconiche Creek by Chesapeake Opearting, Inc. The well is located 12 miles northeast from Nacogdoches and bottoms at 11,000-feet. When gauged on a 48/64-inch choke the well potentialed 267,000 cubic feet of natural gas. Production is in Travis Peak formation.

Panola County

The McJimsey Gas Unit Well No. 3 has been completed in the Carthage, North Field by Stroud Energy, Ltd. The well is located 5.9 miles northeast from DeBerry and bottoms at 9,880-feet. When gauged on a 20/64-inch choke the well potentialed 26 barrels of crude. Production is in the Cotton Valley formation.

The Carthage Field has seen more production. The E. A. Mitchell Well No. 2025 has been completed by Anadarko E&P Company LP to a total depth of 6,820-feet. The well is located 4.9 miles northwest from Carthage. The well was gauged on an adjustable choke and flowed with 131 barrels of crude. Production is in the Travis Peak formation.

In a lease 8.4 miles southwest from Carthage, in the Carthage Field, the Carthage Gas Unit 17 Well No. 7 has been completed by EnCana Oil & Gas (USA) Inc. The well was drilled to a depth of 9,741-feet and potentialed 813,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

When gauged on an adjustable choke, the Wilson Unit Well No. 15 potentialed 1.461 million cubic feet of natural gas. Devon Energy Production Company, L.P. drilled the well 2.1 miles east from Carthage in the Carthage Field to a depth of 9,710-feet. Production is in the Cotton Valley formation.

The Burnett Unit 4 Well No. 9 has been completed by Lacy Operations, Ltd. The well is located 9.3 miles north of Carthage in the Carthage Field. The well will bottom at 9,700-feet and potentialed 1.534 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

Devon Louisiana Corp. has completed the Burton, John W. Well No. 14 in the Carthage Field to a depth of 9,620-feet. The well is located 6.7 miles southwest from Carthage and potentialed 895,000 cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

The Beckville, North Field has seen more production from Rippy Oil Co. They completed the Genecov Well No. 5 to a depth of 10,300-feet and the well is located five miles east from Tatum. When gauged on an open choke the well potentialed 1.080 million cubic feet of natural gas. Production is in the Cotton Valley formation.

When gauged on a 24/64-inch choke, the Whitfield Well No. 19 potentialed 1.802 million cubic feet of gas. Chevron U.S.A. Inc. completed the well to a depth of 9,816-feet. The well is located 2.5 miles southeast from Beckville in the Carthage Field. Production is in the Cotton Valley formation.

Rusk County

El Paso Production Co. has completed the Viper G.U. 1 Well No. 1 and the Wylie Well No. 5 in the Minden Field. The No. 1 is located 4.9 miles southeast of Henderson and has a total depth of 10,820-feet.This well potentialed 1.730 million cubic feet of natural gas when gauged on a 18/64-inch choke. The No. 5 is located 2.5 miles southeast of Henderson and has a total depth of 10,920-feet. This well was gauged on a 18/64-inch choke and potentialed 724,000 cubic feet of natural gas. Production for both wells is in the Cotton Valley formation.

The Jimmerson ‘A’ Well No. 1 has been completed in the Oak Hill Field by C W Resources, Inc. The well is located seven miles northeast of Henderson and bottoms at a depth of 10,580-feet. The well was gauged on a 10/64-inch choke and potentialed 987,000 cubic feet of gas. Production is in the Cotton Valley Sand formation.

The Church Hill Field has seen more production. The Frank Prior Well No. 1 has been completed by Goodrich Petroleum Co. The well bottoms at 10,650-feet and is located seven miles east of Henderson. The well was gauged on a 28/64-inch choke and potentialed 425,000 cubic feet of gas. Production is in the Cotton Valley formation.

When gauged on a 18/64-inch choke, the Cobra G.U. 1 Well No. 2 potentialed 1.264 million cubic feet of natural gas. The well was drilled to a depth of 10,885-feet in the Minden Field and is located 6.6 miles southeast of Henderson. Production is in the Cotton Valley formation.

El Paso Production Co. has completed the Hudson Well No. 2 in the Oak Hill, South Field to a depth of 10,950-feet. The well is located 2.4 miles northwest of Henderson and was gauged on a 16/64-inch choke, potentialing 2.262 million cubic feet of gas. Production is in the Cotton Valley formation.

The T. Strong Well No. 1 has been completed in the Church Hill Field by Goodrich Production Co. The well is located two miles south of Liberty and bottoms at 10,375-feet. The well was gauged on a 19/64-inch choke and potentialed 750,000 cubic feet of gas. Production is in the Cotton Valley formation.

In a lease 8.2 miles northeast from Henderson in the Oak Hill Field, the Linnie “M” Gas Unit Well No. 6 has been completed by Samson Lone Star Limited Partnership. The well bottoms at 10,731-feet and flowed with 16.7 barrels of crude when gauged on a 64/64-inch choke. Production is in the Travis Peak formation.

Smith County

Antero Resources II, LP has filed the completion report for the NE Overton Unit Well No. 9. The well is located 13.8 miles southeast from Tyler in the Overton Field. The well bottoms at 11,979-feet and potentialed 573,000 cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley Sand formation.

The Green Bay Well No. 13 bottoms at 12,027-feet in the Overton Field. The well was completed by Antero Resources II, LP. The well was drilled 13.6 miles southeast from Tyler and potentialed 801,000 cubic feet of natural gas when gauged on a 10/64-inch choke. Production is in the Cotton Valley Sand formation.

When gauged on a 24/64-inch choke, the Milton Anderson Gas Unit 1 Well No. 14 potentialed 1.986 million cubic feet of natural gas. Southwestern Energy Production Co. drilled the well 3.9 miles southwest from Arp in the Overton Field. The well bottoms at a total depth of 11,885-feet. Production is in the Cotton Valley Sand formation.