EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

The Marathon Oil Co. will drill the Whiteman Gas Unit #1 Well No.9H 7.9 miles west from Alto in the White Oak Creek (Pettit) Field. Total depth wil be 14,000-feet in the Maudling, J W Survey, A-570. This well may also be drilled in a Wildcat Field.

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Gregg County

The Robbins "N" Well No.15 will be drilled by Chinn Exploration Co. in the Oak Hill (Cotton Valley) Field. This well will be located 8.7 miles east from Longview in the Matthews, J Survey, A-3. Total depth will be 12,500-feet.

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In a lease 3.5 miles east from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field, the Flanagan Well No.14 will be drilled by Samson Lone Star, LLC. This well will bottom at 13,000-feet in the Edwards, H Survey, A-64.

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J-W Operating Co. will drill the A.J. Tuttle Gas Unit Well No.6H in the Willow Springs (Cotton Valley) Field to a depth of 15,000-feet. This well will be located four miles northwest from Longview in the Rains, P P Survey, A-258.

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Harrison County

Penn Virginia Oil & Gas, L.P. will drill the Fogle Gas Unit Well No.6H in the Carthage, North (Bossier Shale) Field. The well will be located 12.9 miles southeast from Marshall in the Nance, G Survey, A-519 with a depth of 13,000-feet. This well may also be drilled in a Wildcat Field.

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The Darco, Southeast (Cotton Valley) Field will see the Meek Haynes Unit Well No.9 drilled by O'Benco, Inc. This well will be located 10.1 miles south from Marshall in the Carrol, E Survey, A-135 and will bottom at 12,000-feet. This well may also be drilled in the Blocker (Rodessa) Field, a Wildcat Field, the Blocker (Travis Peak) Field, the Blocker (Page) Field or the Carthage, North (Bossier Shale) Field.

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NFR Energy, LLC will drill the Whittaker Well No.4 to a depth of 13,000-feet in a Wildcat Field. This well will be located six miles southwest from Marshall in the Blankenship, L B Survey, A-71. This well may also be drilled in the Blocker (Cotton Valley) Field or the Carthage, North (Bossier Shale) Field.

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In a lease six miles north from Marshall in the Woodlawn Field, the Frank Davis Est. Gas Unit 2 Well No.2 will be drilled by Clemons, Tony W. This well will bottom at 7,000-feet in the Smith, R W Survey, A-626. This well may also be drilled in the Woodlawn (Transition) Field, Woodlawn (Hill) Field, the Woodlawn (Nugent) Field, the Woodlawn (Rodessa) Field or the Woodlawn (Pettit-Page) Field.

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The Davis Gas Unit Well No.2 will be drilled by Craton Energy Holdings III, LP in the Oak Hill (Cotton Valley) Field. This well will be located 1.5 miles southwest from Hallsville in the Hooper, R Survey, A-304. This well will bottom at 13,000-feet and may also be drilled in the Carthage, North (Bossier Shale) field or a Wildcat Field.

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The Jones, Penny Well No.8H will be drilled 7.3 miles northeast from Marshall in the Carthage, North (Bossier Shale) Field by Penn Virginia Oil & Gas, L.P. This well will bottom at 13,000-feet in the Johnson, G Survey, A-359 and may also be drilled in the Carthage, North (Cotton Valley) Field or the Bethany (Travis Peak Consolidated) Field.

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A Wildcat Field will see the Smith Gas Unit Well No.1D drilled by Enervest Operating, L.L.C. to a depth of 11,500-feet. This well will be located four miles southwest from Hallsville in the Berry, M Survey, A-75 and may also be drilled in the Oak Hill (Cotton Valley) Field.

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Panola County

In a lease 2.6 miles southwest from Fairplay in the Beckville (Cotton Valley) Field, the Sealey G.U. Well No.4R will be drilled by Goodrich Petroleum Co. This well will bottom at 13,000-feet in the Warden, J Survey, A-755. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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Anadarko E&P Company LP is preparing to drill the CGU 16 Well No.19, the Freeman Gas Unit Well No.14 and the CGU 7 Well No.15 in the Carthage (Cotton Valley) Field. The No.19 well will bottom at 12,000-feet in the White, J A Survey, A-749. Location will be 4.7 miles northwest from Carthage. The well may also be drilled in a Wildcat Field. The No.14 well will bottom at 12,000- feet in the Childress, H C Survey, A-137. Location will be 9.6 miles northwest from Carthage. The No.15 well will bottom at 12,000- feet in the Mc Creary, C Survey, A- 428. Location will be 5.4 miles northwest from Carthage.

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The Carthage (Cotton Valley) Field will see the Alexander, Geneva Furrh Etal Well No.7 and the Hull Unit A Well No.A103 drilled by Devon Energy Production Company, L.P. The No.7 will be located 8.9 miles northeast from Carthage in the Decker, E Survey, A-169. Total depth will be 13,000- feet. The No.A103 will be located 3.8 miles northeast from Carthage in the Lambert, J M survey, A-418. Total depth will be 14,000-feet. These wells may also be drilled in a Wildcat Field.

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The Frost Lumber Company Well No.1 will be drilled 19.8 miles east from Carthage in the Carthage (Cotton Valley) Field. This well will be drilled to a depth of 10,300- feet in the MK&TE RR Co. Survey, A-913 by Classic Operating Company LLC. This well may also be drilled in a Wildcat Field or the Joaquin (Travis Peak) Field.

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Goodrich Petroleum Co. is preparing to drill the Taylor Sealey GU Well No.2 in the Beckville (Cotton Valley) Field. This well will be located 2.4 miles southwest from Fairplay in the Biggs, H Survey, A-65. Total depth will be 13,000-feet. This well may also be drilled in the Beckville (Travis Peak) Field or a Wildcat Field.

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In a lease 3.2 miles northwest from DeBerry, in a Wildcat Field, the James Madison Furrh Heirs Well No.1 will be drilled by Penn Vriginia Oil & Gas, L.P. This well will bottom at 14,000-feet in the Tutle, D Sr. Survey, A-668. This well may also be drilled in the Carthage, North (Cotton Valley) Field or the Carthage (Cotton Valley) Field.

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The Carthage (Cotton Valley) Field will see Lacy Operations, Ltd. drill the Burnett Unit 2 Well No.9 to a depth of 10,000-feet. This well will be located 7.9 miles northeast from Carthage in the Slaughter, G Survey, A-653.

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Upshur County

In a lease 4.9 miles southwest from Gilmer, in a Wildcat Field, the Ida Mae Brown Gas Unit Well No.2H will be drilled by Cordillera Texas, L.P. This well will bottom at 13,000-feet in the Williams, J B Survey, A-535. The well may also be drilled in the Gilmer (Cotton Valley Upper) Field, the Gilmer (Cotton Valley Sands) Field, the Wilkins, North (Cotton Valley Sand) Field, the Gilmer (Cotton Valley) Field or the Gilmer, South (Cotton Valley) Field.

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Cherokee County

When gauged on a 24/64-inch choke, the Toliver Gas Unit 1 Well No.2 potentialed 1.538 million cubic feet of natural gas. This well was completed one mile north from Alto in the Alto Field. Chesapeake Operating, Inc. has completed the well to a depth of 11,550- feet. Production is in the Travis Peak formation.

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Chesapeake Operating, Inc. has completed the Castleberry Gas Unit Well No.1 in the Reklaw Field to a depth of 11,150-feet. This well is located three miles south from Rusk. When guaged on a 26/64-inch choke, the well potentialed 147,000 cubic feet of gas. Production is in the Woodbine formation.

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The Morby & Walsh Gas Unit 1 Well No.1 has been completed by Southwestern Energy Production Co. 2.8 miles northwest from Jacksonville in the Overton Field. This well bottoms at 14,451-feet and potentialed 337,000 cubic feet of gas when gauged on a 42/64-inch choke. Production is in the Cotton Valley Sand formation.

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Gregg County

The Daniles, Judge G.U. 1 Well No.10 is located 2.5 miles east of Kilgore in the Danville Field. Samson Lone Star, LLC has completed the well to a depth of 10,993-feet. This well potentialed 1.420 million cubic feet of gas when gauged on a 16/64-inch choke. Production is in the Travis Peak-Cotton Valley Consolidated formation.

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Rusk County

The Maxwell Gas Unit Well No.2 is located 1.3 miles southwest of Minden in the Minden, West Field. Enduring Resources, LLC has completed the well to a depth of 10,966-feet. When gauged on an adjustable choke, the well potentialed 1.538 million cubic feet of natural gas. Production is in the Rodessa Hill formation. This well was transferred to the Brachfield, Southeast Field. When gauged on an adjustable choke, the well potentialed 1.759 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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In a lease 6.1 miles southwest from Tatum, in the Oak Hill Field, the Michael Kangerga Gas Unit Well No.3 has been completed by BP America Production Co. This well bottoms at 10,544-feet and potentialed 3.217 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Newfield Exploration Co. has completed the Minor, L.V. G.U. 1 Well No.2 in the Oak Hill Field to a depth of 10,868-feet. This well is located 3.1 miles southwest from Monroe. When gauged on an adjustable choke, the well potentialed 5,000 cubic feet of gas. Production is in the Pettit formation.

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There has been four wells completed in the Brachfield, Southeast Field by Enduring Resources, LLC. The TXU Gas Unit Well No.7 is located 1.4 miles northwest of Minden with depth of 10,820-feet. When gauged on an adjustable choke, the well potentialed 1.181 million cubic feet of gas. The Tufco Gas Unit 1 Well No.5 is located 1.8 miles northwest of Minden with a depth of 10,850-feet. When gauged on an adjustable choke, the well potentialed 2.079 million cubic feet of gas. The Green Gas Unit 1 Well No.3 is located 2.6 miles northwest of Minden with a depth of 10,910-feet. When gauged on an adjustable choke, the well potentialed 1.027 million cubic feet of gas. The Maxwell Gas Unit 1 Well No.4 is located 1.5 miles southwest of Minden with a depth of 11,100- feet. When gauged on an adjustable choke, the well potentialed 450,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Energen Resources Corp. has completed the Minor, A. Gas Unit Well No.13 in the Oak Hill Field. This well is located four miles northwest from Tatum with a depth of 10,757-feet. The well potentialed 966,000 cubic feet of natural gas when gauged on a 35/64- inch choke. Productin is in the Cotton Valley formation.

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Smith County

In a lease 2.5 miles northwest of Arp, in the Overton Field, the Dyer Well No.3H has been completed to a depth of 14,688-feet by Wagner & Brown, Ltd. This well potentialed 9.418 million cubic feet of gas when gauged on a 1.75- inch choke. Production is in the Cotton Valley Sand formation.

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Tarrant County

The Green Oaks Well No.1H is located within city limits of Fort Worth in the Newark, East Field. Chesapeake Operating, Inc. has completed the well to a depth of 10,757-feet. This well potentialed 2.837 million cubic feet of gas when gauged on a 64/64-inch choke. Production is in the Barnett Shale formation.

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When gauged on a 48/64-inch choke, the Mercantile "C" Well No.2H potentialed 3.637 million cubic feet of gas. The well is located 4.6 miles northeast of Fort Worth in the Newark, East Field. Burnett Oil Company Inc. has completed the well to a depth of 10,336-feet. Production is in the Barnett Shale formation.

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There have been three wells completed in the Newark, East Field by XTO Energy Inc. The Edwards Ranch A Unit Well No.1H is located within city limits of Benbrook with a depth of 8,962-feet. The Barksdale A Unit Well No.2H is located 2.9 miles northeast from Britton with a depth of 12,440- feet. The Buzzy Unit Well No.1H is located 9.3 miles east from Fort Worth with a depth of 11,655-feet. The test data for all three wells was not recorded. Production is in the Barnett Shale formation.

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There have been seven additional wells completed in the Newark, East Field by Chesapeake Operating, Inc. The Spinks Well No.5-H is located within city limits of Fort Worth with a depth of 10,638-feet and potentialed 4.927 million cubic feet of gas when gauged on a 30/64-inch choke. The JLB A Well No.1-H is located four miles east from Fort Worth with a depth of 10,664-feet and potentialed 2.103 million cubic feet of gas, choke size not recorded. The Crouch B Well No.2-H is located 0.74 miles northeast from Crowley with a depth of 10,803-feet and potentialed 2.623 million cubic feet of gas when gauged on a 64/64-inch choke. The DFW Well No.A5HU is located within city limits of Grapevine with a depth of 11,615-feet and potentialed 1.5378 million cubic feet of gas, choke size not recorded. The DFW Well No.B1HN is located 22 miles northeast from Fort Worth with a depth of 12,318-feet and potentialed 1.3524 million cubic feet of gas, choke size not recorded. The DFW Minters Well No.B5HN is located within city limits of Grapevine with a depth of 12,481-feet and potentialed 808,900 cubic feet of gas, choke size not recorded. The DFW Well No.B7HY is located within city limits of Grapevine with a depth of 13,337-feet and potentialed 1.2395 million cubic feet of gas, choke size not recorded. Production is in the Barnett Shale formation.

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Metroplex Barnett Shale LLC has completed the Mitx-Centex Unit 1 Well No.1H and the Kimball Hill Well No.2H in the Newark, East Field. The No.1H well is located within city limits of Arlington with a depth of 11,889- feet. This well was gauged on a 1- inch choke and potentialed 7.201 million cubic feet of gas. The No.2H well is located within city limits of Arlington with a depth of 12,444-feet. This well was gauged on a 1-inch choke and potentialed 999,000 cubic feet of gas. Production is in the Barnett Shale formation.