OIL & GAS

EAST TEXAS DRILLING

REPORT

DEVELOPMENTAL

Cherokee County

In a lease within the city limits of Troup, in the Overton (Cotton Valley Sand) Field, the McGill Well No.5 will be drilled by C.W. Resources, Inc. The well will be drilled to a depth of 12,200-feet in the George, W Survey, A-295.

Marathon Oil Co. will drill the Ralph Rozelle Gas Unit Well No.6 to a depth of 12,500-feet in the White Oak Creek (Travis Peak) Field. The well will be located 5.5 miles northwest from Alto in the Fry, K L Survey, A-290.

The D.F. Landrum Well no.1 will be drilled by Windsor Energy Group, L.L.C. in a Wildcat Field. The well will be located six miles west from Alto in the Ruddell, G Survey, A-46. The well will bottom at 11,200-feet.

Freestone County

Chesapeake Operating, Inc. will drill the Bonner Well No.9, the Bonner Well No.10 and the Bonner Well No.11 in the Loper (Cotton Valley Lime) Field. The wells will bottom at 14,000-feet. The No.9 will be located 1.1 miles northeast from Stewards Mill in the Ryan, J Survey, A-532. The No.10 will be located 1.5 miles northeast from Stewards Mill in the Tisdel, W H Survey, A-617. The No.11 will be located 1..3 miles northeast from Stewards Mill in the Tisdel, W H Survey, A-617. The wells may also be drilled in the Loper (Bossier) Field or a Wildcat Field.

In a lease 2.4 miles southwest from Dew in the Dew (Cotton Valley Consolidated) Field, the Johnson "A" Well No.17 will be drilled. The well will be drilled to a depth of 14,000-feet in the Jennings, J R Survey, A-343 by Anadarko Petroleum Corp.

The Utley "1" Well No.23 will be located five miles southeast from Fairfield, in the Mimms Creek (Cotton Valley Sand) Field. The well will be drilled to a total depth of 13,000-feet by Marathon Oil Co. The well will lie in the McClannahan, J Survey, A-416.

The Freestone (Cotton Valley Bossier Consolidated) Field will see the C. A. Newsom Estate Well No.29 and the Bell Gas Unit Well No.14 drilled by XTO Energy Inc. The No.29 will be located 2.4 miles northwest from Donie in the Newman, A C Survey, A-477 with a depth of 13,500-feet. The No.14 will be located 4.5 miles southwest from Teague in the Cobb, W A Survey, A-160 with a depth of 13,600-feet.

Anadarko Petroleum Corp. will drill the West "A" Well No.4 and the West "A" Well No.7 in the Bear Grass (Cotton Valley Consolidated) Field. The No.4 will be located 1.8 miles southeast from Donie with a depth of 15,000-feet. The well may also be drilled in the Bear Grass (Travis Peak) Field. The No.7 will be located 1.6 miles southeast from Donie with a depth of 16,000-feet. The well may also be drilled in the Bear Grass (Cotton Valley Lime) Field or the Bear Grass (Travis Peak) Field. Both wells will lie in the Diaz, G Survey, A-178.

The Senter Gas Unit Well No.3 will be drilled by XTO Energy Inc. in the Teague (Cotton Valley Sand) Field. The well will be located 2.2 miles southwest from Teague with a depth of 13,000-feet in the Polk C Survey, A-497. The well may also be drilled in the Teague Townsite (Bossier) Field.

Gregg County

A Wildcat Field will see the Melton, Della Well No.1 to a depth of 10,910-feet. The well will be located 1.3 miles southeast from Judson in the Crane, R T Survey, A-46. The well may also be drilled in the Willow Springs (Cotton Valley) Field.

The Bradley Unit Well No.2 will be located within the city limits of Easton in the Oak Hill (Cotton Valley) Field. The well will be drilled to a depth of 12,000-feet by Samson Lone Star LP in the Walling, J Survey, A-239. The well may also be drilled in a Wildcat Field.

Harrison County Samson Lone Star LP will drill a new well in the Blocker (Cotton Valley) Field. The well is designated the Finklea Gas Unit Well No.3 and will be drilled to a depth of 11,000feet. The well will be located six miles east from Hallsville in the Blankenship, L B Survey, A71. The wll may also be drilled in a Wildcat Field.

The Anderson Well No.5 and the Anderson Well No.6 will be drilled in a Wildcat Field by Howell Oil & Gas, Inc. The wells will bottom at 10,500-feet in the Long, W T Survey, A403. The No.5 will be located 4.8 miles southwest from Marshall and the No.6 will be located five miles southwest from Marshall. The wells may also be drilled in the Blocker (Wier) Field, the Blocker (Cotton Valley) Field, the

Blocker (Rodessa) Field, the Blocker (Richardson Sand) Field, the Blocker (Travis Peak 6910 Sand) Field, the Blocker, Northeast (Pettit Page) Field or the Blocker (Page) Field.

The Woodlawn (Cotton Valley) Field will see the W.E. Jackson Gas Unit Well No.5 drilled by BP America Production Co. The well will bottom at 11,500-feet in the White, J E Survey, A-755. Location of the well will be 2.2 miles southeast from Woodlawn.

In a lease 10.6 miles south from Marshall, in the Darco, Southeast (Cotton Valley) Field, the Hazel Byrne Gas Unit No.2 Well No.2 will be drilled. O'Benco, Inc. will drill the well to reach a depth of 10,300-feet in the Martha Duncan Survey, A-197. The well may also be drilled in a Wildcat Field.

Davis Vacuum Services Lp is preparing to drill the Davis SWD Well No.2. This well will reach a total depth of 6,000-feet in the Blocker (Rodessa) Field. The well will be located four miles four miles southeast from Marshall. This well will lie in the Rogers, B Survey,A-20.

Forest Oil Corp. is preparing to drill the Glady's Davis Unit Well No.8 to a total depth of 10,400-feet in a Wildcat Field. The well will be located 7.4 miles north from Marshall. The well will lie in the Smith R W Survey,A-626. This well may also be drilled in a Hallsville, Northeast (Cotton Valley) Field or Woodlawn, north (Travis Peak) Field.

In alease 3.2 miles east from Lakeport, Craton Energy Co. is preparing to drill the Eastman Chemical Co. Gas Unit 1 Well No.4 to a total depth of 11,500-feet. The well will be in the Oak Hill (Cotton Valley) Field and will lie in the SP RR CO Survey, A-697.

Panloa County

In a lease 4.5 miles southwest from Beckville, in the Beckville (Cotton Valley) Field, the Tompkins Trust Gas Unit Well no.2 will be drilled by XTO Energy Inc. The well will be drilled to a depth of 12,000feet in the Spencer, J Survey, A589.

Devon Energy Production Company, L.P. will drill the Haygood, Lois Well No.14 to a depth of 10,000-feet. The well will be located 7.25 miles southwest from Carthage in the Morris, E Survey, A-432.

In a lease 4.4 miles northwest from Beckville in a Wildcat Field, Buffco Production Inc. is preparing to drill the Cunnungham Well No.4. The well will reach a total depth of 11,000feet and will lie itn the Staton, E Survey, A-628. This may also be drilled in the Garrison (Travis Peak) Field.

The Lutheran Church Well No.2 is being prepared for drilling by Goodrich Pertoleum Co. The well will reach a total depth of 10,800-feet in the Beckville (Cotton Valley) Field. The well will be located 7.2 miles southwest from Tatum. This well will lie in the Rogers, D F Survey, A-568. This well may also be drilled in the Beckville (Pettit 6800) Field, or the Beckville (Travis Peak) Field.

Chesapeake Operating Inc. is preparing to drill the A. L. Davis Gas Unit Well No.13 to a total depth of 12,000-feet in the Carthage (Cotton Valley) Field. The well will be located 3.5 miles south from Carthage. The well will lie in the Lucinda Shields Survey, A-605. This well may also be drilled in the Carthage (Pettit, Lower) Field, a Wildcat Field, or a Carthage (James Lime) Field.

Devon Energy Production Co. is preparing to drill the Brannon Well No. 5 and the Brannon Well No.8 to a total depth of 10,000-feet in the Carthage (Cotton Valley) Field. The Well No.5 will be located 6.9 miles southwest fro Carthage and Well No.8 will be located 7.7 miles southwest from Carthge. The wells lie in the Parkerm , M Survey, A-527.

In a lease 11.1 west from Carthage, Ac Exploration is preparing to drill the R.D. Browning Gas Unit Well No.5 to a total depth of 10,200-feet in a Wildcat Field. The well will lie in the Morgan, E Survey, A469. This well may also be drilled in a Carthage (Pettit, Lower) Field, Carthage (Rodessa) Field, or a J.G.S. (Rodessa Gloyd) Field.

The Carthage (Cotton Valley) Field will see more production as Lacy Operations prepares to drill the Burnett Unit7 Well no.26. The well will be located 7.5 miles north from Carthage. The well will bottom at a total depth of 9,800-feet. The well will lie in the Brumley, W Survey, A-94.

Chevron U.S.A. Inc. is preparing to drill the Whitfield Well No.23 to a total depth of 10,250-feet. The well will be located 2.8 miles west from Panola in the Carthage (Cotton Valley) Field. The well will lie in the Scott, T M Survey, A594.

In a lease 6.2 miles east from Elysian Field in the Bethany (Cotton Valley) Field, the M. W. Wells Estate Gas Unit #1 Well No.4 will be drilled by Samson Lone Star LP. The well will bottom at a depth of 10,000-feet in the Womack, J Survey, A-705. The well may also be drilled in a Wildcat Field.

The Brannon Well No.7 will be drilled to a depth of 10,000feet in the Carthage (Cotton Valley) Field. The well will be located 7.5 miles southwest from Carthage in the Parker, M Survey, A-527.

Rusk County

The Minden (Cotton Valley Consolidated) Field will see a new well drilled by Cabot Oil & Gas Corp. The well is designated the Harrell Gas Unit Well No.4 and will botton at a total depth of 11,800-feet. The well will be located 1.73 miles northeast from Minden in the Miller, A Survey, A-574. The second well is designated the Dunn Well No.1 and will be drilled to a depth of 11,800

also be drilled in a Wildcat Field or the Minden (Travis Peak) Field.

Danmark Energy Services Inc. is preparing to drill the Hemby, T. G. Well No.6 to a total depth of 10,000-feet. The well will be located 3.21 miles southwest from Tatum. The well will lie in the Martin, D Survey, A-526. This well may also be drilled in the Oak Hill (Cotton Valley) Field.

In a lease 8.1 miles southeast from Hendrson, El Paso Production Co. is preparing to drill the Kangerga Well No.1 to a depth of 11,500-feet. The well will be in the Minden (Cotton Valley Consolidated) Field and will lie in the Nieto, J Survey, A-602. This well may also be drilled in a Wildcat Field.

The Anderson, J. G. Well No.1 will be located 2.5 miles southeast from Henderson in a Wildcat Field. The well will be drilled to a total depth of 11,300-feet by Spartan Operating Company, Inc. in the Jackson, T J Survey, A-15. The well may also be drilled in the Minden (Cotton Valley Consolidated) Field.

In a lease eight miles northeast from Henderson in the Oak Hill (Cotton Valley) Field, the Maloney Gas Unit Well N.9 will be drilled by Samson Lone Star LP. The well will be drilled in the Frisby, W Survey, A-280 with a depth of 10,800-feet. The well may also be drilled in a Wildcat Field.

Chesapeake Operating, Inc. will drill the Smith Family Trust Well No.3 in the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field. The well will be located 3.3 miles northwest from Garrison in the Morrison, J C Survey, A-517. This wel may also be drilled in a Wildcat Field or the Naconiche Creek (Cotton Valley) Field. Total depth will be 12,000-feet.

Smith County

Southwestern Energy Production Co. will drill the Kirkpatrick Gas Unit 1 Well No.3 to a depth of 12,300-feet and the McMoyle Unit 1 Well No.10 to a depth of 12,250feet. The wells will be drilled in the Overton (Cotton Valley Sand) Field. The No.3 well will be located 0.9 miles northeast from Troup in the J. Noblitt Survey, A-735. The No.10 will be located 3.4 miles northwest from Troup in the Brimberry, S Survey, A-69. The wells may also be drilled in a Wildcat Field.

Southwestern Energy Prod. Co. is preparing to drill the Morby Unit 1 Well No.14 to a the Samuel Brimberry Survey, A-69.

COMPLETION

Gregg County

The J.M. Haynes Well No.47 has been completed in the Glenwood Field by Verado Energy, Inc. The well is located 0.5 miles southwest of Clarksville with a depth of 11,000-feet. The well was gauged on a 16/64-inch choke and potentialed 692,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

Panola County

In a lease 4.5 miles northeast from DeBerry, in the Carthage, North Field, the Tiller Well No.7 has been completed. Samson Lone Star Limited Partnership drilled the well to reach a depth of 9,940-feet. The well flowed with 15 barrrels of crude when gauged on a 26/64-inch choke. Production is in the Cotton Valley formation.

The Parker Unit 2 Well No.4 has been completed in the Beckville, North Field by Lacy Operations, Ltd. The well is located four miles east of Beckville with a depth of 10,136-feet. The well was gauged on an adjustable choke and potentialed 46,000 cubic feet of gas. Production is in the Pettet formation.

In a lease 10.1 miles east of Carthage in the Carthage Field, the Werner-Clarence Unit Well No.5-C has been completed by Chevron U.S.A. Inc. The well is drilled to a depth of 10,163feet and potentialed 1.424 million cubic feet of gas when gauged on an adjustable choke. Production is in the Travis Peak formation.

The Carthage Field has seen the Thomas & Wood Well No.8 drilled by Exxon Mobil Corp. The well is located miles within Carthage city limits with a depth of 9,400-feet. The well potentialed 672,000 cubic feet of gas when gauged on a 26/64inch choke. Production is in the Cotton Valley formation.

Rusk County

The Don S. Craig GU 1 Well No.3 is located five miles east of Henderson in the Minden Field. EXCO Resources, Inc. has completed the well to a depth of 10,733-feet. The well potentialed 1.176 million cubic feet of gas when gauged on an

adjustable choke. Production is in the Cotton Valley Consolidated formation.

Stroud Energy, Ltd. has completed the Still Gas Unit 1 Well No.3 in the Oak Hill Field. the well is located six miles southeast from Kilgore with a depth of 11,160-feet. When gauged on a 26/64-inch choke, the well potentialed 1.088 million cubic feet of gas when gauged on a 26/64-inch choke. Production is in the Cotton Valley formation.

In a lease 3.1 miles southeast from Kilgore, in the Oak Hill Field, the Prince Gas Unit 1 Well No.3 has been completed by Stroud Energy, Ltd. The well potentialed 901,000 cubic feet of gas when gauged on a 12/64-inch choke. Production is in the Cotton Valley formation.

The Oak Hill Field has seen the Booth-Freeman Well No.14 drilled by Samson Lone Star Limited Partnership. The well is located nine miles west from Tatum with a depth of 10,700feet. The well was gauged on a 24/64-inch choke and potentialed 2.750 million cubic feet of gas. Production is in the Cotton Valley formation.

When gauged on a 12/64inch choke, the Grammling Well No.2 potentialed 1.033 million cubic feet of gas. The well is located 3.1 miles southwest of Henderson in the Minden Field. The well was drilled to a depth of 10,750-feet by PMO. Production is in the Cotton Valley Consolidated formation.

The Mullins Unit Well No.1 has been completed to a depth of 12,085-feet by EnCana Oil & Gas (USA) Inc. The well is located 2.1 miles southwest from Church Hill. The well was gauged on a 48/64-inch choke and potentialed 509,000 cubic feet of gas. Production is in the Cotton Valley Sand formation.

Upshur County

When gauged on a 48/64inch choke, the Barbee G.U. 1 Well No.5 potentialed 432,000 cubic feet of gas. The well is located 5.5 miles northwest from Gilmer in the Rosewood Field. McBee Operating Company, L.L.C. drilled the well to a total depth of 10,800-feet.