EAST TEXAS DRILLING

DEVELOPMENTAL

Gregg County

XTO Energy Inc. is preparing to drill a new well to a depth of 12,000-feet. The well is designated the WSGU11 (Gray -9) Well No. 10. The well will be located 2.6 miles southwest from Longview in the Willow Springs (Cotton Valley) Field. The well will lie in the Hewitt, W M Survey, A-96. This well may also be drilled in a Willow Springs (Travis Peak) Field.

In a lease 4.5 miles northeast from Kilgore, in the Danville (Travis Peak Consolidated) Field, the StarrDickson G. U. 1 Well No. 12 will be drilled. Geo-Vest of Texas, Inc. will drill the well to a depth of 11,000feet in the Haden Edwards Survey, A-64. The well may also be drilled in a Wildcat Field or the Danville, East (Cotton Valley) Field.

The Dacro Southeast (Cotton Valley) Field will see more production as Comstock Oil & Gas LP prepares to drill two new wells to a total depth of 10,500-feet. The wells are designated the Susan B. Harris Gas Unit No. 2 Well No. 3 and is located 11.1 miles south from Marshall. The Layton Well No. 2 is located 10.7 miles south from Marshall. Both wells will lie in the Duncan, M Survey, A-197.

The Harrison B. S. Well No. 3 is being prepared for drilling by Comstock Oil & Gas LP. The well will bottom at a depth of 10,500-feet and will be located 8.9 miles south from Marshall in the Blocker (Cotton Valley) Field. The well will lie in the Carrol, E Survey, A-135.

Comstock Oil & Gas LP is preparing to drill two new wells to a depth of 10,500-feet in the Blocker (Cotton Valley) Field. The wells are designated the Harrison B.S. Well No. 4 and the Harrison B.S. Well No. 6. Well No. 4 will be located 9.5 miles south from Marshall and will lie in the Duncan, M Survey, A-197. The Well No. 6 will be located 8.7 miles south from Marshall and will lie in the Carrol, E Survey, A-135.

Samson Lone Star LP is preparing to drill the Blalock Gas Unit No. 2 Well No. 3 and the Dreyfus, M. K. Well No. 2. The No. 3 well will be located six miles southwest from Marshall in the Blocker (Cotton Valley) Field. The well will reach a total depth of 11,000-feet and will lie in the Applewhite, T Survey, A-68. The No. 2 well will be located 7.5 miles northwest from Waskom in the Waskom (Cotton Valley) Field. The well will reach a total depth of 11,500-feet and will lie in the Fuller, F Survey, A-8. The well may also be drilled in a Wildcat Field, the Waskom (Cotton Valley, Oil ) Field, the Waskom (Cotton Valley 8300) Field or the Scottsville, North (Travis Peak) Field.

GMX Resources Inc. is preparing to drill the Baldwin Well No. 2A. The well will bottom at a depth of 10,200-feet in the Wildcat Field. The well will be located 10.1 miles southeast from Marshall and will lie in the Williams, W Survey, A-757. This well may also be drilled in the Bethany (Pettit 6170) Field, Carthage, North (Cotton Valley) Field, or the Bethany (Travis Peak Consolidated) Field.

The Blocker (Cotton Valley) Field will see more production. The Jackson Gas Unit Well No. 1 will be drilled by Brammer Engineering, Inc. to a depth of 10,200-feet. The well will be located 7.5 miles southwest from Marshall in the English, E Survey, A-234.

In a lease 2.8 miles northeast from Easton, in the Oak Hill (Cotton Valley) Field, the Bivins Gas Unit 1 Well No. 7 will be drilled by Valence Operating Co. The well will be drilled to a dpeth of 11,000-feet in the Pinson, J D Survey. A-544.

Panola County

Chevron U. S. A. Inc. will drill the Werner-Lefoy Unit Well No. 10 and the Barnett Unit Well No. 4. The No. 10 will be drilled to a depth of 10,200-feet in the Carthage (Cotton Valley) Field and the No. 4 will be drilled to a depth of 10,300-feet in the Carthage (Travis Peak) Field. The No. 10 well will be located 10.5 miles east from Carthage in the Pace, J Survey, A-537. The No. 4 well will be located 12.1 miles east from Carthage in the Adam Lagrone Survey, A-392. This well may also be drilled in the Carthage (Cotton Valley) Field or the Wildcat Field.

The Dunlap Unit Well No. 14 will bottom at 10,000-feet in the Carthage (Cotton Valley) Field. The well will be drilled 6.6 miles southeast from Carthage in the Anderson, W Survey, A-4 by Devon Energy Production Company, L.P.

In a lease 3.5 miles southeast from Tatum, in a Wildcat Field, the Vice-Shivers Unit Well No. 6 will be drilled by Danmark Energy Services, Inc. The well will bottom at a depth of 11,000-feet in the Gooden, W Survey, A-221.

The Carthage, South (Cotton Valley) Field will see more production. The Fleming Well No. 1 will be drilled to a depth of 10,500-feet by Basa Resources, Inc. The well will be located 3.5 miles southwest from Clayton in the Davis, H Survey, A157.The well may also be drilled in the Carthage, Southwest (Pettit) Field, the Carthage (Travis Peak) Field, a Wildcat Field, the Carthage (Travis Peak 6310) Field, the Carthage (Inez) Field, the Carthage (Rodessa) Field, the Carthage, South (Travis Peak) Field, the Carthage (Travis Peak-SP) Field, the Carthage (Hill, Southwest) Field, the Carthage (Barbara) Field, the Carthage (Travis Peak0Woolworth-2) Field or the Carthage, South (Travis Peak 6750) Field.

Winchester Production Co. will be drilling the Schulze Well No. 1 in the Carthage, North (Cotton Valley) Field to a depth of 10,100-feet. The well will be located 8.5 miles southeast from DeBerry in the Mc Gee, A T Survey, A-472. The well may also be drilled in a Wildcat Field.

A Wildcat Field will see more production. The Frost “B” Well No. 6 will be drilled to a of 10,200-feet. The well will be drilled 17.7 miles east from Carthage by Chevron U. S. A. Inc. The well will lie in the Carpenter, M Survey, A-921 and may also be drilled in the Carthage (Travis Peak) Field or the Carthage (Cotton Valley) Field.

The Robinson, M. E. Well No. 3 will be drilled to a depth of 10,500feet in a Wildcat Field by Preston Exploration LLC. The well will be located one mile northeast from Clayton in the Romero, M A Survey, A-1. The well may also be drilled in the Carthage (Cotton Valley) Field.

Lacy Operations, Ltd. will drill the J. W. Cooke Unit 2 Well No. 10 to a depth of 9,850-feet and the Northcutt Well No. 2 to a depth of 10,050-feet in the Carthage (Cotton Valley) Field. The No. 10 well will be located 8.1 miles north from Carthage in the Duboise, A Sr. Survey, A-159 and the No. 2 well will be located 7.8 miles northwest from Carthage in the Antwine Duboise, Jr. Survey, A-161.

In a lease 5.7 miles southeast from DeBerry, in the Centennial, East (Cotton Valley) Field, the Werner Matthews Well No. 8 will be drilled by Sendero Energy Inc. The well will bottom at 10,000-feet in the Matthews, J Survey, A-421.

The Sealey, J. J Well No. 11 will bottom at 10,300-feet in the Carthage (Cotton Valley) Field. The well will lie in the George Goodwin Survey, A-224 and will be drilled by XTO Energy Inc.

Smith County

The Arnold Gas Unit 2 Well No. 9 will bottom at 12,000-feet in the Overton (Cotton Valley Sand) Field. The well will be drilled 2.9 miles southwest from Arp by Southwestern Energy Production Co. The well will lie in the Benijah Lafferty Survey, A13 and may also be drilled in a Wildcat Field.

J-W Operating Co. will drill the Wilso, Maxie Well No. 1 in the Chapel Hill (Cotton Valley) Field to a depth of 13,000-feet. The well will be located 5.01 miles north from Arp in the Michael West Survey, A1053.

A Wildcat Field will see new production. The well is designated the Davenport, D. L. Et Al Well No. 1 to a depth of 7,900-feet. The well will be located four miles northwest from Winona in the Brown, M T Survey, A-155.

Upshur County

El Paso Production Co. is preparing to drill a new well in a Wildcat Field. The well is designated the Enoch Well No. 1 and will bottom at 12,500-feet. The well will be located 3.7 miles southwest from Gilmer in the Benigno Davenport, J B Survey, A-1. The well may also be drilled in the Mings Chapel (Cotton Valley Lime) Field.

In a lease 0.5 miles north from Gilmer in the Glenwood (Cotton Valley) Field, the Victory Well No. 06 will be drilled by TXOK Texas Energy Resources, L.P. The well will bottom at 11,200-feet in the Allen, T Survey, A-666. COMPLETIONS

Freestone County

XTO Energy Inc. has completed the J.A. Gilliam Unit Well No. 12 to a depth of 12,785-feet in the Oaks Field. The well is lcaoted 6.20 miles southwest of Teague. The well was gauged on a 12/64-inch choke and potentialed 747,000 cubic feet of gas. Production is in the Cotton Valley Lime formation.

When gauged on a 48/64-inch choke, the Holmes “A” Well No. 13 potentialed 2.975 million cubic feet of gas. The well is located 3.6 miles south southwest of Donie in the Farrar Field. Valence Operating Co. drilled the well to reach a total depth of 14,250-feet. Production is in the Cotton Valley Lime formation.

The J. W. Mitchello Gas Unit Well No. 1 was gauged on a 48/64-inch choke and potentialed 7.315 million cubic feet of gas. The well was drilled six miles from Fairfield by EnCana Oil & Gas (USA) Inc. to a depth of 12,240-feet. Production is in the Haynesville Consolidated formation.

Valence Operating Co. has also completed the Goolsby, H. C. Well No. 2 in the Mimms Creek Field to a depth of 12,281-feet. The well is located four miles northwest from Dew. The well potentialed 611,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley Sand formation.

The J.A. Gilliam Unit Well No. 11, the Brumlow Gas Unit #1 Well No. 18, the C.C. Thompson Well No. 21 and the McSwane Gas Unit Well No. 8 have been completed by XTO Energy. The No. 11 is located 6.30 miles southwest of Teague in the Oaks Field. The well bottoms at 12,665-feet and potentialed 694,000 cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Cotton Valley Lime formation. The No. 18 is located five miles northwest of Donie in the Freestone Field with a depth of 12,460-feet. The well was gauged on a 14/64-inch choke and potentialed 1.916 million cubic feet of gas. Production is in the Bossier Sand formation. The No. 21 is located 3.50 miles northwest of Donie in the Freestone Field with a depth of 13,045-feet. The well potentialed 1.7653 million cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley formation. The No. 8 is located 6.10 miles southeast of Teague in the Freestone Field with a depth of 13,080-feet. The well potentialed 727,000 cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley formation.

In a lease six miles south from Fairfield, in the Mimms Creek Field, the Utley “B” Well No. 2 has been completed. The well is drilled to a depth of 12,710-feet. When gauged on an adjustable choke the well potentialed 1.822 million cubic feet of gas. Production is in the Cotton Valley Sand formation. The well was drilled by Marathon Oil Co.

Panola County

When gauged on an adjustable choke, the Mangham, R. S. Well No. 13 potentialed 501,000 cubic feet of natural gas. The well is located five miles southwest from Beckville in the Carthage Field. The well was drilled to a depth of 9,411-feet by Chevron U. S. A. Inc. Production is in the Cotton Valley formation.

The Bill Powers Well No. 6 and the Bill Powers Well No. 5 have been completed in the Carthage, South Field by XTO Energy Inc. The wells are located 8.60 miles southwest of Beckville with the No. 6 bottoming at a depth of 10,096-feet and the No. 5 bottoming with a depth of 10,325-feet. The No. 6 well was gauged on a 18/64-inch choke and potentialed 1.004 million cubic feet of natural gas. The No. 5 well was gauged on a 18/64-inch choke and potentialed 836,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

In a lease 2.1 miles south from Beckville, in the Carthage Field, the Beall, W.F. Well No. 21 potentialed 789,000 cubic feet of gas. Chevron U.S.A. Inc. drilled the well to a depth of 9,361-feet and gauged the well on an adjustable choke. Production is in the Cotton Valley formation.

Pladin Drilling Co. has filed the first completion report for the Bristol Well No. 1. The well is located seven miles southeast of Deadwood in the Belle Bower Field and was drilled to a depth of 3,423-feet. The well was gauged on a 10/64inch choke and potentialed 179,000 cubic feet of natural gas. Production is in the Upper Paluxy formation.

Rusk County

When gauged on a 24/64-inch choke, the Lake Gas Unit 1 Well No. 5 potentialed 1.161 million cubic feet of gas. The well was drilled 4.4 miles southwest from Henderson in the East Henderson Field by The Houston Exploration Co. The well bottoms at a total depth of 11,180feet. Production is in the Cotton Valley formation.

The Benton “J” Well No. 13 has been completed in the Minden Field by Chinn Exploration Co. The well is located 3.8 miles west of Henderson and bottoms at 10,925-feet. The well potentialed 904,000 cubic feet of natural gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley Consolidated formation.

Smith County

The JR Odom Well No. 3 potentialed 1.131 million cubic feet of natural gas when gauged on a 17/64-inch choke. The well is located 1.5 miles northeast to Troup in the Overton Field. The well was drilled to a depth of 12,3974-feet by MAP Production Company, Inc. Production is in the Cotton Valley Sand formation.