EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

Marathon Oil Co. will drill the McClendon Gas Unit 1 Well No.11H in the White Oak Creek (Pettit) Field. The well will bottom at 14,000-feet 6.9 miles west from Alton in the Johnson, W M Survey, A-460.

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Gregg County

The Griffin Ranch Gas Unit 2 Well No.15 is being prepared for drillin by Exco Operating Company, LP. The well will bottom at a depth of 13,000-feet in the Danville (Travis Peak Consolidated) Field. The well will be located 4.2 miles northeast from Kilgore and will lie in the Edwards, H Survey, A-64.

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Harrison County

In a lease 12.2 miles southeast from Marshall, the Gibbson Gas Unit Well No.2H is being prepared for drilling by Penn Virginia Oil & Gas, L.P. The well will bottom at a total depth of 14,000-feet in a Wildcat Field. The well will lie in the Mondays, S Survey, A-14. This well may also be drilled in the Hardwood (Cotton Valley) Field, Carthage, North (Cotton Valley) Field, and the Bethany (Travis Peak Consolidated) Field.

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Preston Exploration LLC will drill the Cook Well No.1 in the Hardwood (Cotton Valley) Field. This well will be located five miles southeast from Marshall in the Shoto, S Survey, A-632 with a depth of 13,000-feet. This well may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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The Smith, T.P. Estate 'C' Well No.8H will be drilled by Comstock Oil & Gas, L.P. in the Waskom (Cotton Valley) Field. This well will bottom at 9,800-feet in the Simpson Holloway Survey, A-295. Location will be 4.1 miles southwest from Waskom.

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In a lease five miles southwest from Hallsville, in a Wildcat Field, the Loftis Gas Unit Well No.12 will be drilled to a depth of 11,500-feet by Enervest Operating, L.L.C. This well will lie in the Real, A Survey, A-594 and may also be drilled in the Oak Hill (Cotton Valley) Field.

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O'Benco, Inc. will prepare to drill the Jenkins "A" Unit Well No.15 and the Jenkins "A" Unit Well No.16 in the Darco, Southeast (Cotton Valley) Field. The wells will be drilled 9.2 south from Marshall in the Carrol, E Survey, A-135 and will bottom at 10,350-feet. The No.15 may also be drilled in a Wildcat Field, the Blocker (Page) Field or the Blocker (Travis Peak) Field. The No.16 may also be drilled in the Blocker (Travis Peak) Field, a Wildcat Field, the Blocker (Rodessa) Field or the Blocker (Page) Field.

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A Wildcat Field will see the Baldwin Well No.14H drilled by GMX Resources Inc. to a depth of 13,000- feet. This well will be located ten miles southeast from Marshall in the Williams, W Survey, A-757. This well may also be drilled in the Carthage, North (Bossier Shale) Field.

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The Vann-McElroy Gas Unit Well No.3 will be drilled by Sandridge Exploration and Production, LLC in a Wildcat Field. This well will be located 5.5 miles east from Hallsville in the Gillet, C Survey, A-9 with a depth of 14,000-feet. This well may also be drilled in the Hallsville, Northeast (Cotton Valley) Field.

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In a lease 9.9 miles south from Marshall in the Darco, Southeast (Cotton Valley) Field, the Doyle Harris Gas Unit WelL No.8 will be drilled by O'Benco, Inc. The well will be drilled to a depth of 12,000-feet in the Duncan, M Survey, A-197 and may also be drilled in a Wildcat Field or the Carthage, North (Bossier Shale) Field.

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Panola County

The Burnett Unit 9 Well No.15 is being prepared for drilling by the Lacy Operations, LTD. The well will bottom at a total depth of 7,100-feet in the Briggs (Upper Travis Peak) Field. The well will be located 8.1 miles north from Carthage and will lie in the Decker, J Survey, A-170.

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In a lease 9.3 miles southwest from Carthage in the Carthage (Cotton Valley) Field, Devon Energy Production Company, L.P is preparing to drill a well. The well is to be know as the Davis, M. L. Well No.10H and will bottom at a total depth of 15,000-feet. The well will lie in the Shields, J Survey, A-588.

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Anadarko E &P Company LP is preparing to drill the CGU 7 Well No.14 to a total depth of 12,000-feet. The well will be located 5.4 miles southwest from Carthage in the Carthage (Cotton Valley) Field. The well will lie in the Hite, J Survey, A- 318.

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A Wildcat Field will see the Yarborough Gas Unit No.1 Well No.12 drilled by Chesapeake Operating, Inc. This well will be drilled 5.9 miles east from Tatum in the Jno. G. Berry Survey, A-53. Total depth will be 12,000-feet and this well may also be drilled in the Beckville, North (Cotton Valley) Field.

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The Sand Hill Panola SWD Well No.2 will be drilled 5.7 miles northeast from Deadwood in the Carthage (Travis Peak) Field. This well will be drilled to a depth of 6,000-feet by Sand Hill Foundation, LLC. The well will lie in the Wilson, P R Survey, A-750.

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Anadarko E & P Company LP will drill the Caudle, Dahila O Unit 1 Well No.14 in the Carthage (Cotton Valley) Field. This well will be located 5.5 miles southeast from Carthage in the Anderson, B. Jr. Survey, A-7. Total depth will be 12,000-feet.

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Rusk County

Cherokee Water Company Unit well No.13 is being prepared for drilling by Sandrige Exploration and Production LLC to a total depth of 12,000-feet. The well will be located 5.4 miles northwest from Tatum in the Oak Hill (Cotton Valley) Field. The well will lie in the Walling, J Survey, A-42.

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In a lease 2.8 miles north from Tatum, in the Beckville (Pettit 6800) Field, the Carter-Hurst Gas Unit #1 Well No.3 will be drilled by H & T Exploration, Inc. This well will be drilled to a depth of 7,400-feet in the Gray, J A Survey, A-343. This well may also be drilled in the Tatum, North (Travis Peak) Field, the Henderson, North (Rodessa) Field or a Wildcat Field.

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Smith County

The Tyler State Park Unit "A" Well No.1 will be drilled 8.7 miles northeast from Tyler in a Wildcat Field. The well will be drilled to a depth of 10,250-feet in the Flores, F Survey, A-9 by Carrizo Oil & Gas, Inc.

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Upshur County

The Marshall, T.E. Well No.2 will be drilled by Valence Operating Co. in the Cedar Springs (Cotton Valley, Lower) Field. This well will bottom at 12,500-feet in the Goy, J B Survey, A-168 7.25 miles northwest from Ore City. This well may also be drilled in the Cedar Springs (Maddox 10730) Field.

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Angelina County

EnCana Oil & Gas (USA) Inc. has completed four new wells in the Raintree Field. The Preston Heirs Unit Well No.9 is located 3.76 miles northeast from Wells with a depth of 11,825-feet. This well was gauged on an adjustable choke and potentialed 6.485 million cubic feet of gas. The Angelina Lumber Wrll No.1 is located 4.94 miles southeast from Wells with a depth of 11,875-feet. This well was gauged on an adjustable choke and potentialed 5.560 million cubic feet of gas. The Ryan, E. M. Unit Well No.8 is located 2.78 miles northeast of Wells with a depth of 11,806-feet. This well was gauged on an adjustable choke and potentialed 6.356 million cubic feet of gas. The Ryan, E. M. Unit Well No.9 is located 3.64 miles southeast from Wells with a depth of 11,825-feet. This well was gauged on an adjustable choke and potentialed 5.403 million cubic feet of gas. Production is in the Travis Peak Consolidated formation.

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Gregg County

The Jones, Alford Gas Unit Well No.17 is located 9.6 miles southeast of Longview in the Oak Hill Field. This well bottoms at 10,822-feet drilled by Anadarko E&P Company LP. When gauged on an adjustable choke, the well potentialed 592,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Harrison County

Winchester Production Company, Ltd. has completed the Jonesville Well No.28 in the Waskom Field one mile northeast from Jonesville. This well bottoms at 9,800-feet and potentialed 670,000 cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Cotton Valley formation.

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There has been three new wells completed by Forest Oil Corp. The Stephens No.1 Unit Well No.2 is located 11 miles southeast from Jefferson in the Carthage, North Field. This well bottoms at 9,985-feet and potentialed 517,000 cubic feet of gas when gauged on a 26/64-inch choke. The Beatrice Key Gas Unit Well No.3 and the Beatrice Key Gas Unit Well No.5 have been completed in the Woodlawn Field. The No.3 is located 4.64 miles northwest from Karnack with a depth of 9,850-feet and potentialed 655,000 cubic feet of gas when gauged on a 26/64-inch choke. The No.5 is located 4.17 miles northwest from Karnack with a depth of 9,810- feet and potentialed 551,000 cubic feet of gas when gauged on a 26/64- inch choke. Production is in the Cotton Valley formation.

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The Narramore Well No.12 is located 1.25 miles northeast from Jonesville in the Waskom Field. This well bottoms at 9,840-feet drilled by Winchester Production Company, Ltd. This well was gauged on a 16/64- inch choke and potentialed 1.225 million cubic feet of gas. Production is in the Cotton Valley formation. ******

Panola County

The Holmes, Priestly Unit Well No.19-H is located 5.6 miles southeast of Carthage in the Carthage Field. Anadarko E&P Company LP drilled the well to a depth of 11,960- feet. When gauged on a 57/64-inch choke, the well potentialed 5.408 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Neal, John S. Gas Unit Well No.8 potentialed 429,000 cubic feet of natural gas. This well is lcoated 6.7 miles southeast of Carthage in the Carthage Field. This well was completed to a depth of 9,720-feet by Anadarko E & P Company LP. Production is in the Cotton Valley formation.

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Enduring Resources, LLC has completed the Keeling Family Gas Unit Well No.2 in the Brachfield, Southeast Field. This well is located 3.6 miles southwest of Long Branch with a depth of 10,460-feet. This well potentialed 113,000 cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Cotton Valley formation.

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The CGU 3 Well No.19 is located 2.2 miles northwest of Carthage in the Carthage Field. Anadarko E & P Company LP has completed the well to a depth of 9,755-feet. This well was gauged on an adjustable choke and potentialed 1.438 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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The Minden Field has seen the Hammett Well No.1 completed by Buffco Production, Inc. to a depth of 10,834-feet. This well is located 3.8 miles southeast of Houston and potentialed 620,000 cubic feet of gas when gauged on a 12/64-inch choke. Production is in the Cotton Valley Consolidated formation.

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Devon Energy Production Company, L.P. has completed the Hudson, Nell Well No.19 five miles southwest from Carthage in the Carthage Field. This well bottoms at 9,640-feet and potentialed 1.138 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Rusk County

The Kennedy G. U. 1 Well No.8, the Kennedy, Major Estate Gas Unit Well No.27 and the High Estate Gas Unit WelL No.12 have been completed by Anadarko E & P Company LP in the Oak Hill Field. The No.8 is located 20.9 miles northeast of Henderson with a depth of 10,571-feet. This well potentialed 1.199 million cubic feet of gas when gauged on an adjustable choke. The No.27 is located 20 miles northeast from Henderson with a depth of 10,625-feet. This well potentialed 1.190 million cubic feet of gas when gauged on an adjustable choke. The No.12 is located 4.9 miles northwest from Henderson with a dpeth of 11,029-feet and potentialed 954,000 cubic feet of gas when gauged on an adjustable chok. Production is in the Cotton Valley formation.

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Enduring Resources, LLC has completed the Tufco Gas Unit 1 Well No.7, the Tufco Gas Unit 1 Well No.8, the Tufco Gas Unit 1 Well No.9 and the Hays Gas Unit Well No.1 in the Brachfield, Southeast Field. The No.7 is located 1.3 miles northwest of Minden with a depth of 10,850-feet and potentialed 1.637 million cubic feet of gas when gauged on an adjustable choke. The No.8 and the No.9 wells are located one mile northwest of Minden. The No.8 bottoms with a depth of 10,880-feet and potentialed 1.576 million cubic feet of natural gas when gauged on an adjustable choke. The No.9 bottoms with a depth of 10,880-feet and potentialed 1.275 million cubic feet of natural gas when gauged on an adjustable choke. The No.1 is located 2.3 miles northwest of Minden with a depth of 10,860-feet and potentialed 1.148 million cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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The Oak Hill Field has seen the Williamson Unit Well No.9 drilled by Energen Resources Corp. This well bottoms at 10,726-feet 2.7 miles northwest from Tatum. When gauged on a 48/64-inch choke, the well potentialed 869,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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In a lease 6.5 miles southwest from Tatum, in the Oak Hill Field, the Williamson Well No.10 has been completed by Verado Energy, Inc. This well bottoms at 10,583-feet and potentialed 1.822 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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Forest Oil Corp. has completed five additional wells in the Henderson, East Field. The Harmon Gas Unit No.1 Well No.9 is located six miles northwest from Henderson with a depth of 11,350-feet and potentialed 1.772 million cubic feet of gas when gauged on a 26/64-inch choke. The Alexander Heirs Gas Unit Well No.4 is located five miles southwest from Henderson with a depth of 11,299-feet and potentialed 616,000 cubic feet of gas when gauged on a 26/64-inch choke. The Alexander Heirs Gas Unit Well No.3 is located 5.3 miles southwest from Henderson with a depth of 11,295-feet and potentialed 413,000 cubic feet of gas when gauged on a 26/64-inch choke. The Stroud Gas Unit No.1 Well No.5 is located 7.3 miles northwest of Henderson with a depth of 11,275-feet and potentialed 265,000 cubic feet of gas when gauged on a 26/64-inch choke. The Alexander Heirs Gas Unit WelL No.12 is located 5.8 miles southwest from Henderson with a depth of 11,295-feet and potentialed 1.400 million cubic feet of gas when gauged on a 28/64-inch choke. Production is in the Cotton Valley formation.

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The Kennedy Gas Unit 2 Well No.15 is located 21.1 miles northeast from Henderson in the Oak Hill Field. Anadarko E & P Company LP has completed the well to a depth of 10,545-feet. This well was gauged on an adjustable choke and potentialed 863,000 cubic feet of gas. Production is in the Cotton Valley formation.

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San Augustine County

When gauged on a 48/64-inch choke, the Katherine Van Goetz Well No.1 potentialed 5.797 million cubic feet of gas. This well was completed by Cabot Oil & Gas Corp. seven miles west of San Augustine in the Angie Field. Total depth is 13,546- feet. Production is in the James Lime formation.

Shelby County

KCS Resources, Inc. has completed the Alice W. Johnson Well No.2 in the Carthage Field. This well is located within city limits of Joaquin in the Carthge Field with a depth of 9,860-feet. When gauged on a 34/64-inch choke, the well potentialed 258,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 64/64-inch choke, the Timberstar-Rusk B 593 potentialed 4.454 million cubic feet of natural gas. The well is located two miles southeast of Aiken in the Angie Field. This well was completed by Cabot Oil & Gas Corp. to a depth of 12,338-feet. Production is in the James Lime formation.

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The Lout, Mike & Trish Gas Unit Well No.1-H is located 3.6 miles southwest from Shelbyville in the Huxley Field. This well bottoms at 13,250-feet drilled by Hunt Petroleum Corp. When gauged on a 48/64- inch choke, the well potentialed 1.059 million cubic feet of gas. Production is in the 6100 formation.

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Tarrant County

The Prime Rail Unit Well No.4H is located within city limits of Fort Worth in the Newark, East Field. XTO Energy Inc. has completed the well to a depth of 9,315-feet. This well was gauged on a 35/64-inch choke and potentialed 2.074 million cubic feet of gas. Production is in the Barnett Shale formation.

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Devon Energy Production Company, L.P. has completed the Porter et al Well No.2 and the Shelton, J. Tom Well No.13 in the Newark, East Field. The No.2 is located three miles southwest from Haslet with a depth of 9,424-feet. When guaged on a 12/64-inch choke, the well potentialed 753,000 cubic feet of gas. The No.13 is located six miles northwest from Saginaw with a depth of 10,775- feet. When gauged on a 48/64-inch choke, the well potentialed 1.941 million cubic feet of gas. Production is in the Barnett Shale formation.

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When gauged on a 28/64-inch choke, the Wilson Well No.6H potentialed 2.121 million cubic feet of gas. This well is located within city limits of Fort Worth in the Newark, East Field. EnCana Oil & Gas (USA) Inc. has completed the well to a depth of 9,995-feet. Production is in the Barnett Shale formation.

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The Newark, East Field has seen the Kimball Hill Well No.1H and the Graham Unit 1 Well No.2H completed by Metroplex Barnett Shale LLC. The No.1H is located within city limits of Arlington with a depth of 11,447-feet and potentialed 4.674 million cubic feet of natural gas when gauged on a 1-inch choke. The No.2H is located within city limits of North Richland Hills with a depth of 12,185-feet and potentialed 6.052 million cubic feet of natural gas when gauged on a 1-inch choke. Production is in the Barnett Shale formation.

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Chesapeake Operating, Inc. has completed seven additional wells in the Newark, East Field. The DFW Well No.C1HL is located 22 miles northeast from Fort Worth with a depth of 12,650-feet and potentialed 2.880 million cubic feet of gas, choke size not recorded. The Ward Well No.A1H is located 11.5 miles west from Fort Worth with a depth of 10,055-feet and potentialed 2.396 million cubic feet of gas when gauged on a 1-inch choke. The Lake Oaks Well No.2H is located 10.4 miles northwest from Fort Worth with a depth of 11,730-feet and potentialed 3.271 million cubic feet of gas when gauged on a 1-inch choke. The LAH Well No.5H is located 10.7 miles northwest from Fort Worth with a depth of 11,690-feet and potentialed 3.411 million cubic feet of gas when gauged on a 1-inch choke. The Wilkinson Well No.B2H is located 10.9 miles northwest from Fort Worth with a depth of 10,719-feet and potentialed 3.451 million cubic feet of gas when gauged on a 1-inch choke. The Wilkinson Well No.B 4H is located 10.9 miles northwest from Fort Worth with a depth of 10,335- feet and potentialed 3.849 million cubic feet of gas when gauged on a 1- inch choke. The Trimble Well No.1- H is located within city limits of Fort Worth with a depth of 10,586-feet and potentialed 2.587 million cubic feet of gas when gauged on a 64/64- inch choke. Production is in the Barnett Shale formation.

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Upshur County

The Barksdale, John Well No.15 is located five miles north from Gladewater in the Glenwood Field. EXCO Operating Company, LP has completed the well to a depth of 11,010-feet. This well was gauged on a 24/64-inch choke and potentialed 485,000 cubic feet of natural gas. Production is in the Cotton Valley formation.