EAST TEXAS DRILLING REPORT DEVELOPMENTAL

Gregg County

The Margaret Gunn GU 1 Well No.14 will be located 4.6 miles southwest from Longview in the Edwards, H Survey, A64. The well will be drilled to a depth of 11,550-feet in the Danville (Travis Peak Consolidated) Field by Burlington Resources Oil & Gas Company LP. This well may also be drilled in the Danville, East (Cotton Valley) Field or a Wildcat Field.

Burlington Resources Oil & Gas Company LP will drill the Flewellen GU 1 Well No.15 in the Danville, East (Cotton Valley) Field. The well will be located 4.5 miles southwest from Longview in the Edwards, H Survey, A-64. The well will bottom at 11,445-feet and may also be drilled in a Wildcat Field or the Danville (Travis Peak Consolidated) Field.

Comstock Oil & Gas, LP will drill the Susan B. Harris GU No.2 Well No.5 in the Darco, Southeast (Cotton Valley) Field. This well will be located 10.8 miles south from Marshall in the Duncan, M Survey, A-197 with a depth of 10,500-feet.

In a lease 11.1 miles north from Marshall, in a Wildcat Field, the Hordern Well No.1 will be drilled by Empresa Energy, LP. The well will be drilled to a depth of 11,200-feet in the Sparks, S F Survey, A-635. The well may also be drilled in the Woodlawn (Cotton Valley) Field.

The Abercrombie Well No.5 will be drilled to a depth of 6,450-feet. Shelby Operating Co. will drill the well 5.1 miles south from Waskom in the Waskom (Gloyd) Field. The well will lie in the Bedford, R W Survey, A-69 and may also be drilled in the Waskom (Travis Peak 1) Field, the Waskom (Pettit, Upper) Field, the Waskom (Hill) Field, the Waskom (Pettit, Lower) Field, the Waskom (Travis Peak 7) Field, the Waskom (Travis Peak 3) Field, the Waskom (Rodessa 4800) Field or the Waskom (Page Sand) Field.

Panola County

In a lease 5.6 miles southwest from Beckville, in the Carthage (Cotton Valley) Field, the Mangum, R. S. Well No.12 will be drilled. The well will be drilled by Chevron U.S.A. Inc. to a depth of 10,500-feet in the Spencer, J Survey, A-589.

Chevron U.S.A. Inc. will drill the Werner-Spradley Unit Well No.5 in a Wildcat Field. The well will be located 12.9 miles east from Carthage in the Gibbs, E W Survey, A-229 with a depth of 10,300-feet. The well may also be drilled in the Carthage (Travis Peak) Field or the Carthage (Cotton Valley) Field.

The Knight-Strong Gas Unit Well No.3 will be drilled by Samson Lone Star LP in the Carthage, Southeast (Cotton Valley) Field. The well will be drilled to a depth of 10,500-feet in the Gillaspy, G Survey, A222. The location will be 11.5 miles southeast from Carthage and the well may also be drilled in a Wildcat Field..

In a lease 9.8 miles southwest from Carthage, in the Carthage (Cotton Valley) Field, the Metcalf Well No.6 will be drilled. The well will be drilled to a depth of 11,000-feet by Chinn Exploration Co. in the Butler, J B Survey, A-82.

The Beckville (Cotton Valley) Field will see the Po Beard drilled to a depth of 11,000-feet by Goodrich Petroleum Co. The well will be located 6.2 miles southwest from Tatum in the Brookes, R Survey, A-70. The well may also be drilled in the Beckville (Pettit 6800) Field or a Wildcat Field.

Chevron U.S.A. Inc. will drill a new well in the Carthage (Cotton Valley) Field. The well is designated the Harris, J.W. Well No.18 and will bottom at 10,250-feet. The well will be located 0.8 miles northeast from Beckville in the Smith, E Survey, A-601.

The Thomas, Charles Well No.11 will be located 7.1 miles southwest from Carthage in the Carthage (CottonValley) Field. The well will be drilled to a depth of 10,000-feet in the Parker, M Survey, A-527. The well will be drilled by Devon Energy Production Company, L.P.

The Beckville, North (Cotton Valley) Field will see the Yarborough Gas Unit No.1 Well No.3 drilled by Craton Energy Company II LLC. The well will be drilled to a total depth of 10,500-feet in the Lagrone, A Survey, A-391. The well will be located 5.2 miles southeast from Tatum and may also be drilled in a Wildcat Field.

Chevron U.S.A. Inc. will drill the Harrison, Vera Well No.18 and the Beall-Barksdale Well No.26 in the Carthage (Cotton Valley) Field. The wells will bottom at 10,250-feet. The No.18 will be located 22 miles southwest from Beckville in the Scott, T M Survey, A-594. The No.26 will be located four miles southeast from Beckville in the Lagrone, W A Survey, A-390.

Smith County

The Newsome Unit 1 Well No.14 will be drilled in the Overton (Cotton Valley Sand) Field. Southwestern Energy Production Co. will drill the well to reach a depth of 12,500feet om the Brimberry, S Survey, A-69. The location will be four miles northwest from Troup. The well may also be drilled in a Wildcat Field.

COMPLETION

Gregg County

When gauged on a 22/64inch choke, the Martin Hayes Well No.4 potentialed 643,000 cubic feet of natural gas. The well is located 0.25 miles west of Longview in the Willow Springs Field. The well is drilled to a depth of 10,716-feet by Hunt Petroleum Corp. Production is in the Cotton Valley formation.

Burlington Resources Oil & Gas Company LP has filed the first completion report for the Flewellen G. U. 1 Well No.5. The well is locatd 5.4 miles southwest from Longview with a depth of 10,910-feet. The well potentialed 1.817 million cubic feet of gas when gauged on a 30/64-inch choke in the Willow Springs Field. Production is in the Cotton Valley, West formation.

The Margaret Gunn G.U. 1 Well No.10 and the Flewellen G.U. 1 Well No.3 have been completed in the Willow Sprig s Field by Burlington Resources Oil & Gas Company LP. The No.10 is located 4.6 miles southwest from Longview with a depth of 10,810-feet. The wel was gauged on a 48/64-inch choke and potentialed 2.736 million cubic feet of natural gas. The No.3 is located 5.1 miles southwest from Longview with a depth of 10,970-feet. The well was gauged on a 64/64inch choke and potentialed 2.318 million cubic feet of natural gas. Production is in the Cotton Valley, West formation.

Panola County

The Carthage Field has seen the CGU 12 Well No.14 drilled by Anadarko E&P Company LP to a depth of 9,750-feet. The well is located 4.6 miles northwest from Carthage. The well potentialed 335,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

When gauged on a 22/64inch choke, the Vice Shivers Well No.6 potentialed 420,000 cubic feet of natural gas. The well is located 3.5 miles southeast from Tatum in the Carthage Field. Danmark Energy, L.P. drilled the well to reach a depth of 10,512-feet. Production is in the Cotton Valley formation.

The Richardson Unit 1 Well No.8 potentialed 854,000 cubic feet of gas when gauged on an adjustable choke. The well is located six miles north of Carthage. Lacy Operations, Ltd. drilled the well to reach a depth of 7,100-feet in the Carthage Field. Production is in the Travis Peak formation.

In a lease 5.5 miles south of DeBerry in the Carthage, North Field, the Carter Estate Well No.8 has been completed. Samson Lone Star Limited Partnership drilled the well to bottom at 10,100-feet. When gauged on a 24/64-inch choke, the well potentialed 570,000 cubic feet of gas. Production is in the Cotton Valley formation.

The Beckville Field has seen the John Brooks Well No.1 drilled by Goodrich Petroleum Co. The well is located 8.3 miles southwest of Tatum with a depth of 10,383-feet. The well potentialed 1.285 million cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

When gauged on an adjustable choke, the Williamson Oil Unit Well No.1 flowed with 84.27 barrels of crude. The well is located 4.5 miles southwest Carthage in the Carthage Field. Devon Energy Production drilled the well to reach a depth of 9,610-feet. Production is in the Travis Peak formation.

Devon Energy Production Company, L.P. has completed the drilling of the Williamson Well No.3 in the Carthage Field. The well is located 4.2 miles southwest from Carthage with a depth of 9,500-feet. The well was gauged on an adjustable choke and potentialed 1.051 million cubic feet of gas. Production is in the Travis Peak 6450 formation.

The Crump Gas Unit Well No.7 potentialed 1.129 million cubic feet of gas when gauged on an adjustable choke. The well is located 0.8 miles east from DeBerry in the Bethany, East Field. The total depth of the well was drilled to 9,760feet by Chesapeake Operating, Inc. Production is in the Cotton Valley formation.

In a lease 3.8 miles southeast from Carthage, in the Carthage Field, the Dennard Unit Well No.14 has been completed by Devon Energy Production Company, L.P. The well was gauged on an adjustable choke and potentialed 880,000 cubic feet of natural gas. The well is drilled to a depth of 9,770-feet. Production is in the Cotton Valley formation.

Rusk County

Stroud Energy, Ltd. drilled the Ferguson Gas Unit 1 Well No.3 to a depth of 11,174-feet in the Oak Hill Field. The well is located 4.5 miles southeast from Kilgore. When gauged on a 19/64-inch choke, the well potentialed 876,000 cubic feet of gas. Production is in the Cotton Valley formation.

When gauged on a 22/64inch choke, the Markey #1 Well No.9 potentialed 1.486 million cubic feet of natural gas. The well is located 6.6 miles southeast from Henderson in the Minden Field. El Paso Production

Co. drilled the well to a depth of 10,950-feet. Production is in the Cotton Valley Consolidated formation.

The Cobra #1 Well No.14 has also been completed in the Minden Field by El Paso Production Co. This well is located 6.7 miles southeast from Henderson with a depth of 10,942feet. The well potentialed 2.011 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley Consolidated formation.

In a lease 12 miles southwest from Henderson, in the Minden, West Field, the Harris Well No.3 has been completed by Maxima Energy Corp. The well was drilled to a depth of 7,950feet and was gauged on a 9/64inch choke, potentialing 670,000 cubic feet of gas. Production is in the Travis Peak 7800 formation.

The Beckville Field has seen the AB Taylor Well No.1 drilled to a depth of 10,355-feet by Goodrich Petroleum Co. Location of the well is 0.2 miles southwest of Tatum. The well potentialed 1.116 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

Cabot Oil & Gas Corp. has filed the first completion report for the Orr Well No.1. The well is located three miles northeast of Minden in the Minden Field with a depth of 10,725-feet. The well was gauged on a 26/64-inch choke and potentialed 2.461 million cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

The Toon Gas Unit No.1 Well No.14 potentialed 902,000 cubic0 feet of gas when gauged on a 24/64-inch choke. The well is located 9.4 miles southeast from Kilgore in the Oak Hill Field. The well was drilled to a depth of 10750feet by Dominion Exploration & Production, Inc. Production is in the Cotton Valley formation.

In a lease eight miles east from Henderson, in the Henderson, East Field, the Haskins "C" Well No.4 has been completed

by Chinn Exploration Co. The well potentialed 308,000 cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley formation.

When gauged on a 18/64inch choke, the McIver Well No.1 potentialed 530,000 cubic feet of natural gas. The well is located 3.8 miles northwest from Garrison in the Naconiche Creek Field. The well bottoms at 9,369-feet, drilled by GMT Exploration Company Texas, LLC . Production is in the Rodessa-Travis Peak Consolidated formation.

Upshur County

Valence Operating Co. has completed the drilling of the Brown "B" Well No.2 and the Orr, J. B. Well No.2 in the Cedar Springs Field. The Brown "B" well is located 6.2 miles northwest from Ore City with a depth of 12,130-feet. The well was gauged on a 20/64-inch choke and potentialed 1.561 million cubic feet of gas. The Orr, J. B. well is located 1.2 miles northwest from New Mountain with a depth of 12,074-feet. The well was gauged on a 20/64-inch choke and potentialed 858,000 cubic feet of gas. Production is in the Cotton Valley, Lower formation.

When gauged on a 15/64inch choke, the Porter G.U. 1 Well No.5 potentialed 1.353 million cubic feet of natural gas. The well is located six miles northwest of Gilmer in the Rosewood Field. McBee Operating Company, L.L.C. drilled the well to reach a depth of 10,750-feet. Production is in the Cotton Valley formation.

The Johnson Gas Unit Well No.03 is located 6.70 miles northeast from Gilmer in the Cherokee Trace Field. The well is drilled to a depth of 12,700feet and potentialed 3.815 million cubic feet of gas when gauged on a 18/64-inch choke. Operator is Apache Corp. with the production in the Jurassic Bradshaw formation.