OIL & GAS

DEVELOPMENTAL

Cherokee County

The Whiteman Gas Unit Well No.#1 Well No.7 will be drilled to a depth of 12,500-feet in the White Oak Creek (Travis Peak) Field. The well will be located eight miles west from Alto, the well will be drilled by Marathon Oil Co. in the Collier, T P Survey, A-195. This well may also be drilled in a Wildcat Field.

Harrison County

A Wildcat Field will see the Lockhart Well No.1 drilled by Andrew Alan Exploration, Inc. to a depth of 11,000-feet. Location of the well will be 3.6 miles northeast from Hallsville in the Patton, W Survey, A-18. The well may also be drilled in the Hallsville, Northeast (Cotton Valley) Field.

Enervest Operating, L.L.C. is preparing to drill a new well in a Wildcat Field. The well is designated the Loftis Gas Unit Well No.6 and will bottom with a depth of 11,200-feet. The well will be located 4.9 miles southwest from Hallsville in the Real, A Survey, A-594. The well may also be drilled in the Oak Hill (Cotton Valley) Field.

Limestone County

In a lease 15.9 miles southeast from Groesbeck, in the Farrar (Cotton Valley Lime) Field, the Robert Shaw Gas Unit No.1 Well No.6 will be drilled to a depth of 14,500-feet. The well will be drilled in the Rejon, M C Survey, A-26 by XTO Energy Inc. The well may also be drilled in the Farrar (Travis Peak) Field or the Farrar, Southeast (Pettit) Field.

The Tumlinson "A" Gas Unit Well No.6 will also be drilled in the Farrar (Cotton Valley Lime) Field by XTO Energy Inc. This well will be located 16.2 miles southeast from Groesbeck in the Rejon, M C Survey, A-26 and will bottom at 14,500-feet. The well may also be drilled in the Farrar (Travis Peak) Field.

The Freestone (Cotton Valley Bossier Consolidated) Field will see the Sims, Robert Well No.2, the Sims, Robert Well No.3 and the Reed "P" Gas Unit No.1 Well No.18 drilled by XTO Energy Inc. The No.2 well will be located 10.5 miles southeast from Groesbeck. The No.3 well will be located 10.3 miles southeast from Groesbeck. The No.18 well will be located 14.2 miles southeast from Groesbeck. All three wells will bottom at 9,000-feet in the Chavert, J L Survey, A-4.

Nacogdoches County

EOG Resources, Inc. is preparing to drill the Jones "A1" Gas Unit Well No.2 in the Appleby, North (Travis Peak) Field. The well will be located 3.2 miles northwest from Garrison with a depth of 10,200-feet. This well will lie in the Appleby, North (Pettit) Field.

The R. B. McFaddin Gas Unit "B" Well No.8 will be drilled to a depth of 12,000-feet in the Appleby, North (Pettit) Field. The well will be drilled 5.2 miles southwest from Garrison in the Boatman, J L Survey, A-792 by Apache Corp. The well may also be drilled in the Appleby, North (Rodessa) Field, a Wildcat Field, the Appleby, North (Rodessa, Upper) Field or the Appleby, North (Travis Peak) Field.

Panola County

The Carthage (Cotton Valley) Field will see the J. D. Brasher Unit Well No.22 drilled by Chevron U.S.A. Inc. Location of the well will be 0.9 miles northeast from Beckville in the Smith, E Survey, A-601. Total depth will be 10,500-feet.

In a lease 2.9 miles northwest from Beckville the Porter Well No.10 will be drilled by Comstock Oil & Gas, LP. The well will be drilled to reach a total depth of 10,500-feet in the Carthage (Cotton Valley) Field. The well will lie in the Mc Niece, J Survey, A-459.

The McRae, Blanche Well No.8 will be located eight miles south from Carthage in the Carthage (Cotton Valley) Field. The well will bottom at a depth of 10,000-feet drilled by Devon Energy Production Company, L.P. This well will lie in the Morris, E Survey, A-432.

Rusk County

The Minden (Cotton Valley Consolidated) Field will see the Cuba Alexander Gas Unit No.1 Well No.6 drilled by Ascent Operating, LP. The well will be located 2.3 miles west from Henderson in the Smith, J Survey, A-709. Total depth will be 10,950-feet.

The Muckleroy Gas Unit Well No.1 will be drilled by Mustang Drilling, Ltd. in the Minden (Cotton Valley Consolidated) Field. The well will be located within the city limits of Henderson in the Warren, E B

Survey, A-835 with a total depth of 11,000-feet. The well may also be drilled in a Wildcat Field.

Peoples Energy ProductionTX, L.P. will drill the Copeland Well No.1 5.5 miles southeast from Henderson. The well will bottom at a total depth of 11,100-feet in a Wildcat Field. This well will lie in the White, J M Survey, A-813 and may also be drilled in the Minden (Cotton Valley Consolidated) Field.

Smith County

In a lease 2.4 miles northwest from Troup, the Jerry Cross Gas Unit 1 Well No.13 will be drilled in the Overton (Cotton Valley Sand) Field. The well will be drilled to a depth of 12,400feet, in the Miller, W Survey, A638, by Southwestern Energy Production Co. The well may also be drilled in a Wildcat Field.

Barrow-Shaver Resources Co. will drill a new well in a Wildcat Field. The well is designated the Campbell Well No.1 and will bottom with a depth of 11,000-feet in the Coy, J S Survey, A-196. Location will be 16 miles northeast from Tyler. The well may also be drilled in the Hawkins, South (Rodessa) Field.

COMPLETION

Harrison County

When gauged on an adjustable choke, the Letourneau Gas Unit 2 Well No.12 potentialed 542,000 cubic feet of gas. The well is located 16 miles southwest from Marshall bottoming to a depth of 10,609feet. Anadarko E&P Company LP drilled the well in the Oak Hill Field. Production is in the Cotton Valley formation.

In a lease 8.8 miles southeast of Marshall, in the Hardwood Field, the Barnes GU Well No.1 has been completed by Peoples Energy Production-TX, L.P. The well was drilled to reach a total depth of 10,220-feet and potentialed 1.199 million cubic feet of natural gas when gauged on a 43/64-inch choke. Production is in the Cotton Valley formation.

NEG Operating LLC has filed the first completion reports for the Swepco Gas Unit Well No.6 and the Mattie Dixon G.U. Well No.9 The No.6 well is located 13 miles west from Marshall in the Oak Hill Field. Total depth of this well is 10,685-feet. The well was gauged on a 16/64-inch

choke and potentialed 1.412 million cubic feet of natural gas. The No.9 well is located 13.3 miles southwest from Marshall in the Oak Hill Field. Total depth of this well is 10,678feet. The well was gauged on a 18/64-inch choke and potentialed 1.222 million cubic feet of natural gas. Production for both wells are in the Cotton Valley formation.

The Oak Hill Field has seen an additional well drilled by NEG Operating LLC. This well is located 3.9 miles west from Hallsville with a depth of 10,610-feet. The Lowry Gas Unit Well No.1 potentialed 1.166 million cubic feet of gas when gauged on a 16/64-inch choke. Production is in the Cotton Valley formation.

Leon County

In a lease 6.70 miles northwest of Jewett, in the Bear Grass Field, the Gail King has been completed by XTO Energy Inc. The well has a total depth of 14,800-feet and potentialed 6.027 million cubic feet of gas when gauged on a 13/64-inch choke. Production is in the Cotton Valley Consolidated formation.

XTO Energy Inc. has also completed the Gail King Well No.18 to a depth of 14,846feet. Location of the well is 7.20 miles northwest of Jewett in the Bear Grass Field. The well was gauged on a 13/64inch choke and potentialed 5.220 million cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

Panola County

Chevron U.S.A. Inc. has completed the Ross-Hamilton Well No.5 and the T. C. Adams NCT-1 Well No.60. The No.5 is located 2.4 miles northeast from Beckville in the Carthage Field with a depth of 10,200feet. The well was gauged on a 26/64-inch choke and potentialed 1.271 million cubic feet of gas. Production is in the Cotton Valley formation. The No.60 is located 4.9 miles north from DeBerry in the Bethany Field with a depth of 6,090feet. The well was gauged on an adjustable choke and potentialed 20,000 cubic feet of gas. Production is in the Transition formation.

The Carthage Field has seen the Davis, A.L. Well No.14 drilled to a depth of 9,570-feet by Chesapeake Operating, Inc. The well is located 3.2 miles from Carthage. The well potentialed 1.128 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

When gauged on an adjustable choke, the Beckworth Well No.13 potentialed 1.109 million cubic feet of gas. The well is located 8.6 miles northeast from Carthage in the Carthage Field. Devon Energy Production Company, L.P. drilled the well to reach a depth of 9,765-feet.

The T.C. Adams NCT-1 Well No.61 potentialed 76,000 cubic feet of natural gas when gauged on a 12/64-inch choke. The well is located 4.6 miles south from DeBerry in the Bethany Field. Chevron U.S.A. Inc. drilled the well to bottom at a total depth of 5,980-feet. Production is in the Transition formation.

In a lease 3.2 miles southeast from Carthage, in the Carthage Field, the Dennard Unit Well No.13 has been completed. Devon Energy Production Company, L.P. drilled the well

to reach a depth of 9,745-feet. The well was gauged on an adjustable choke and potentialed 621,000 cubic feet of gas. Production is in the Cotton Valley formation.

Devon Energy Production Company, L.P. has completed the Haygood, Lois Well No.8 in the Carthage Field. Location of the well is 6.6 miles southwest from Carthage with a depth of 9,625-feet. The well was gauged on an adjustable choke and potentialed 2.539 million cubic feet of natural gas. Production is in the Cotton Valley formation.

Upshur County

In a lease 6.5 miles north from Big Sandy, the Hill, L.C. Well No.1-C has been completed by Devon Energy Production Company, L.P. in the Wilkins, North Field. The well bottoms at a depth of 11,840feet and potentialed 481,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley Sand formation.