EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Anderson County

In a lease 10.2 miles northeast from Palestine in a Wildcat, Suemaur Exploration & Production, LLC is preparing to drill a new well to a total depth of 12,000-feet. The well is designated the Greve Well No.1 and will lie in the Davis, S Survey, A-232.

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SDG Operating Company, Inc. will drill the Puzzlewood Ranch Well No.1 in a Wildcat Field. This well will be located 7.5 miles southwest from Elkhart in the Box, S C Survey, A-12 and will bottom at 6,200-feet.

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Angelina County

Encan Oil & Gas (USA) Inc is preparing on drilling two addional wells ato a depth of 12,300-feet in the Raintree (Travis Peak Consolidated) Field. The wells are to be known as the E.M. Ryan Unit Well No.7 and the E.M. Ryan Unit Well No.11. Both wells will lie in the Durst, J Survey, A-703. Well No.7 will be located 4.05 miles northeast from Wells and Wll No.11 will be located 3.93 mile southeast from Wells.

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Angelina Lumber Well No.4 is being prepared by Encan Oil & Gas (USA) Inc to a total depth of 12,300-feet. The well will be located 5.49 miles southeast from Wells in the Raintree (Travis Peak Consolidated) Field. The well will lie in the Durst, J Survey, A-201.

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Cherokee County

XTO Energy Inc. will drill eight new wells in the Doyle Creek (Travis Peak) Field. The Frank Heirs Well No.1 will be drilled 6.3 miles northwest from Wells in the I&GN RR Co. Survey, A-436 and will bottom at 13,000-feet. The Chronister Heirs Well No.45 will be drilled six miles southeast from Alto. The Chronister Heirs Well No.46 will be drilled 5.9 miles southeast from Alto. The Chronister Heirs Well No.47 will be drilled 6.36 miles southeast from Alto. The Chronister Heirs Well No.48 will be drilled 6.1 miles southeast from Alto. The Chronister Heirs Well No.49 and the Chronister Heirs Well No.50 will be drilled 6.6 miles southeast from Alto. The Chronister Heirs Well No.51 will be drilled 6.2 miles southeast from Alto. These wells will bottom at 13,000-feet in the Durst, J Survey, A-15. All eight wells may also be drilled in the Doyle Creek (Pettit) Field.

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Chesapeake Operating, Inc is preparing to drill the Davis Well No.1 to a total depth of 12,000- feet in a Wildcat Field. The well will be located 4.9 miles northwest from Wells and will lie in the Cherry, W H Survey, A-208. This welll may also be drilled in the Doyle Creek (Travis Peak) Field.

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XTO Energy Inc is preparing to drill three addional wells to a total depth of 13,000-feet in the Doyle Creek (Travis Peak)Field. All three wells will be located 5.9 miles northwest from Wells and will lie in the I&GN RR CO Survey,A- 439. The wells are designated the Frank Heirs Well No.2, Frank Heirs Well No. 3 and Frank Heirs Well No.4. The three wells may also be drilled in the Doyle Creek (Pettit) Field.

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Freestone County

The M.T. Peyton GU1 Well No.16H is being prepared for drilling to a total depth of 13,000- feet in the Nan-Su-Gail (Cotton Valley Consoildated) Field. The operator of the well will be Devon Energy Production Company, LLC.The well will be located 5.3 miles northeast from Fairfield and will lie in the Palacios, M R Survey, A-20.

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Harrison County

In the Oak Hill (Cotton Valley) Field, Anadarko E&P Company, LP is preparing to drill an additional well to a total depth of 12,000-feet. The well is designated the Letourneau ET AL 5 Well No.17. The well will be located 15.5 miles southwest from Marshall and will lie in the Richards, W Survey,A-593.

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Nacogdoches County

The Trawick Gas Unit Well No.17 will be drilled in the Trawick (Travis Peak) Field by Exxon Mobil Corp. This well will be located 2.4 miles east from Cushing in the Weekes, J Survey, A-58 and will bottom at 9,800-feet. The well may also be drilled in the Trawick (James) Field, the Trawick (Pettit) Field or a Wildcat Field.

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In a lease six miles southeast from Cushing, Grafton Well No. is being prepared for drilling by Samon Lone Star, LLC. The well will bottom a total dpethof 11,000-feet in the Trawick (Travis Peak) Field. The well will lie in the Strodes, S Survey, A-502. This well may also be drilled in the Trawick (James) Field and Wildcat Field.

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EOG Resources, Inc is preparing to drill the Middlebrook Mineral Partnership Well No.1. The well will bottom at 8,260-feet in the Kendrick (James) Field.The well will be locted 3.3 miles northeast from Nacogdoches. The well will lie in the Flores, V Survey, A- 31.

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Navarro County

The Galahad PG MSL Well No.1 and the Galahad WB MSL Well No.1A will be drilled by Lancelot Exploration, Inc. The No.1 will be located one mile south from Powell in the Corsicana (Shallow) Field. This well will lie in the Lane, W P Survey, A-483 with a depth of 1,800-feet. The No.1A will be loacated one miles south from Powell in the Powell Field. This well will lie in the Lane, W P Survey, A-483 with a depth of 1,800-feet.

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XTO Energy Inc. will drill the Hayes, Raymond Well No.1 in the Cheneyboro (Cotton Valley) Field with a depth of 12,000-feet. This well will be located 12 miles southwest from Kerens in the Reed, W Survey, A-671. This well may also be drilled in a Wildcat Field.

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Lancelot Exploration , Inc is preparing to drill three additional wells to a depth of 1,800-feet in the Corsicana (Shallow) Field. The wells are to be known as the Galahad PG PCH Well No.1, Well No.2, and Well No.3. The three wells will be located one mile south from Powell. All three wells will lie in the Lane, W P Survey, A-483.

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Panola County

Devon Energy Production Company, L.P. will drill the Fite Unit Well No.21 4.1 miles northwest from Carthage in the Carthage (Cotton Valley) Field. This well will bottom at 13,000- feet in the Duncan, S Survey, A- 158 and may also be drilled in a Wildcat Field.

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The Richardson Unit 1 Well No.14 will be drilled 6.8 miles north from Carthage in the Carthage (Cotton Valley) Field. Lacy Operations, Ltd. will drill the well to a depth of 13,000-feet in the Lagrone, W A Survey, A-390. This well may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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The Beckville (Cotton Valley) Field will see the North Blue Gas Unit Well No.1 drilled by Preston Exploration LLC. This well will be located one mile east from Tatum in the Reel, J Survey, A-564.

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XTO Energy Inc. will drill the New Horizons Well No.1H in the Carthage, North (Bossier Shale) Field. This well will be drilled eight miles northwest from Beckville in the Dabling, J C Survey, A-185. Total depth of the well will be 12,500-feet and this well may also be drilled in a Wildcat Field.

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In a lease 4.4 miles west from Beckville in the Beckville (Cotton Valley) Field, the Cunningham Well No.4 will be drilled by Craton Energy Holdings III, LP. This well will bottom at 12,500-feet in the Staton, E Survey, A-628. The well may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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The Mason Well No.24 will be drilled 5.1 miles southwest from Carthage in the Carthage (Cotton Valley) Field. Devon Energy Production Company, L.P. will drill the well to a depth of 12,500-feet in the Hanks, I Survey, A-271.

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Lacy Operations, Ltd will drill the Burnett Unit 9 Well No.16 in the Carthage (Cotton Valley) Field. This well will bottom at 13,000- feet in the Duncan, W V Survey, A-181. Location of the well will be 8.1 miles north from Carthage. The well may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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Rusk County

In a lease five miles east from Overton in the OakHill (Cotton Valley) Field, Wolf Gas Unit Well No.1 is being prepared for drilling to a total depth of 11,200-feet. The operator of the well is Maxima Energy Corporation. The well will lie in the Martin, T J Survey,A-519. This well may also be drilled in a Wildcat Field.

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Energen Resources Corporation is preparing to drill the Hutchings, J. Unit Well No.14 to a total depth of 11,000-feet in the Oak Hill (Cotton Valley) Field. The well will be located 5.3 miles northwest from Tatum and will lie in the Walling, J Survey, A-42.

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There will be three new wells drilled in the Danville (Travis Peak- Cotton Valley Consolidated) Field by Samson Lone Star, LLC. The Lee Gas Unit Well No.3 and the Lee Gas Unit Well No.4 will be drilled three miles southeast from Kilgore in the Wells, H Survey, A- 953. Total depth will be 13,000- feet. The No.3 well may also be drilled in a Wildcat Field. The Lone Star Well No.4 will be drilled 2.5 miles southeast from Kilgore in the Wells, H Survey, A-953 and the well may also be drilled in a Wildcat Field.

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NFR Energy, LLC will drill the McFarland No.1 Gas Unit Well No.1 in the Minden (Cotton Valley Consolidated) Field to a depth of 13,000-feet. The well will be located eight miles southeast from Henderson in the Mora, J A Survey, A-516. This well may also be drilled in the Minden (Travis Peak Consolidated) Field, a Wildcat Field or the Minden (Cotton Valley Lime) Field.

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The Green Gas Unit 1 Well No.101 will be drilled three miles west from Minden in the Brachfield, Southeast (Cotton Valley) Field. The well will be drilled to a depth of 13,500-feet by Enduring Resources, LLC in the Reel, J Survey, A-33. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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Shelby County

The Lane Gas Unit Well No.1H is being prepared for drilling by Petrohawk Operating Company. The well will bottom at a depth of 13,750-feet in the Tenaha (Jurassic) Field. The well will be located 2.5 northwest from Tenaha and will lie in the Sullins, J Survey, A-636.

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The Stockman (Cotton Valley) Field will see the Hughes Gas Unit Well No.4 drilled by XTO Energy Inc. This well will be located 11.9 miles southwest from Center in the Wisener, W Survey, A-778. The well will bottom at 14,000-feet and may also be drilled in a Wildcat Field.

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Ellora Operating, L.P. will drill the Alexander Unit Well No.3H in the Huxley (6100) Field to a depth of 7,500-feet. This well will be located 0.91 miles northwest from Dreka in the Pierpoint, W Survey, A-558.

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Anderson County

The Anwac Field has seen the Temple Eastex Inc. Well No.50 and the Temple Eastex Inc. Well No.52 completed by Wilson, Don H. Inc. The wells are located 4.3 miles east from Elkhart. The No.50 bottoms at 1,503-feet. No production recorded. The No.52 bottoms at 1,503-feet. No production recorded. Production is in the 1400 Wilcox formation.

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Cherokee County

The Chronister Heirs Well No.16 has been completed in the Doyle Creek by XTO Energy Inc. The well is located five miles northwest of Wells with a depth of 12,245-feet. When gauged on a 14/64-inch choke, the well potentialed 1.534 million cubic feet of gas. Production is in the Travis Peak formation.

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In a lease 4.6 miles north of Wells, in the Doyle Creek Field, XTO Energy Inc has filed production reports for Chronister Heirs #18 Well No.18. This well bottoms at a depth of 12,320-feet. The well was gauged on a 16/64-inch choke and potentialed 394,000 cubic feet of natural gas. Prodcution is in the Travis Peak formation.

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When gauged on a 16/64-inch choke, the McKnight Well No.1 potentialed 3.134 million cubic feet of gas. The well is located 10.2 miles southwest from Alto in the Doyle Creek. This well bottoms at 12,250-feet drilled by Chesapeake Operating, Inc. Production is in the Travis Peak formation.

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Harrison County

EnerVest Operating, L.L.C. has completed the Jennifer Stewart Gas Unit Well No.9 in the Oak Hill Field. This well bottoms at 10,830-feet 4.2 miles southwest from Hallsville. When gauged on a 24/64-inch choke, the well potentialed 1.242 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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NFR Energy, LLC has completed three new wells. The Galloway GU Well No.03 is located 5.35 miles southeast from Longview in the Oak Hill Field with a depth of 10,965-feet. This well was gauged on a 48/64-inch choke and potentialed 936,000 cubic feet of gas. Production is in the Cotton Valley formation. The Blalock "A" Well No.10 is located 5.5 miles southwest from Marshall in the Carthage, North Field with a depth of 11,700-feet. This well was gauged on a 48/64-inch choke and potentialed 215,000 cubic feet of gas. Production is in the Bossier Shale formation. The St. John Baptist Church Well No.1 is located 6.9 miles southeast from Marshall in the Carthage, North Field with a depth of 10,260-feet. This well was gauged on a 48/64-inch choke and potentialed 3.524 million cubic feet of gas. Production is the Cotton Valley formation.

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The Williams Well No.4 is located 5.4 miles south of Waskom in the Waskom Field. Shelby Operating Co. has completed the well to a depth of 6,451-feet. When gauged on a 20/64-inch choke, the well potentialed 711,000 cubic feet of natural gas. Production is in the Travis Peak 7 formaiton.

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The Woodlawn, Southwest Field has seen the Hatley Well No.4 completed by Penn Virginia Oi l& Gas, L.P. This well bottoms at 10,621-feet and is located 7.7 miles west from Marshall. When gauged on a 20/64-inch choke, the well potentialed 1.133 million cubic feet of gas. Production is in the Cotton Valley formation.

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Henderson County

In a lease four miles southeast of Malakoff, in the Tri-Cities Field, XTO Energy Inc. has field reports for the J. R. Black Gas Unit Well No.6. This well gauged on a 20/64- inch choke and potentialed 3.923 million cubic feet of natura gas bottoming at 11,649-feet. Production is in the Cotton Valley formation.

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The C.L. Leopard Gas Unit Well No.7 has been completed to a depth of 11,605-feet in the Tri- Cities Field. The operator incharge of the drilling is XTO Energy Inc. The location of the well is 4.80 miles southeast of Malakoff. The well potentialed 2.432 million cubic feet of natural gas, when gauged on a 18/64-inch choke. Production is in the Cotton Valley formation.

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Panola County

The Williamson Well No.22 has been completed by Devon Energy Production Company, L.P. in the Carthage Field. This well is located 3.98 miles southwest from Carthage with a depth of 9,611- feet. When gauged on an adjustable choke, the well potentialed 999,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Anadarko E & P Company LP has completed the CGU 18 Well No.16 in the Carthage Field. This well is located 4.3 miles northwest from Carthage with a depth of 9,744-feet. The well was gauged on an adjustable choke and potentialed 976,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Neal Well No.16 potentialed 1.147 million cubic feet of gas. Devon Energy Production Company, L.P. has completed the well to a depth of 9,740-feet 2.4 miles northeast of Carthage in the Carthage Field. Production is in the Cotton Valley formation.

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The Moore, C.E. Unit Well No.9 is located 4.1 miles southeast from Carthage in the Carthage Field. Anadarko E & P Company LP has completed the well to a depth of 9,394-feet. When gauged on an adjustable choke, the well potentialed 346,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

When gauged on a 34/64-inch choke, the W. C. Lee Well No.3 potentialed 1.351 million cubic feet of gas. This well was completed 3.7 miles southeast from Kilgore in the Danville Field by Encore Operating, L.P. Total depth is 9,768-feet with production in the Travis Peak Consolidated formation.

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The Oak Hill Field has seen the Henderson "E" Well No.9 completed by XTO Energy Inc. This well was completed to a depth of 10,935-feet 7.90 miles northwest of Henderson. When gauged on a 28/64-inch choke, the well potentialed 48,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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Chinn Exploration Co. has completed the Oak Hill G.U. 1 Well No.6 in the Oak Hill Field. This well is located 20.6 miles east of Henderson with a depth of 10,640-feet. When gauged on a 14/64-inch choke, the well potentialed 750,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 26/64-inch choke, the Alexander Heirs Gas Unit Well No.13 potentialed 348,000 cubic feet of natural gas. This well was completed to a depth of 11,258-feet 5.6 miles southwest from Henderson. Forest Oil Corp. has completed the well in the Henderson, East Field.

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San Augustine County

When gauged on a 16/64-inch choke, the Vastar Mineral Gas Unit 4 Well No.5-H potentialed 3.210 million cubic feet of gas. This well was completed 5.7 miles north of San Augustine in the Huxley Field by Hunt Petroleum Corp. This well bottoms at 12,785-feet. Production is in the 6100 formation.

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Shelby County

The Anthony Well No.4 is located 6.6 miles southwest from Center in the Stockman Field. This well was drilled to a depth of 13,268-feet by Devn Energy Production Company, L.P. When gauged on an adjustable choke, the well potentialed 42,000 cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease two miles southeat of Aiken in the Angie Field, the Timberstar Rusk B 593 Well No.4 has been completed by Cabot Oil & Gas Corp. This well was completed to a depth of 11,963-feet. The well was gauged on a 64/64-inch choke and potentialed 5.978 million cubic feet of gas. Production is in the James Lime formation.

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When gauged on a 64/64-inch choke, the Sherman A Well No.1H potentialed 1.152 million cubic feet of gas. The location is seven miles southwest from Center in the Angie Field. Noble Energy Inc. has completed the well to a depth of 11,829-feet. Production is in the James Lime formation.

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Tarrant County

Chesapeake Operating, Inc. has completed the Lockwood Well No.6H in the Newark, East Field. Location of the well is 2.8 miles southwest from Mansfield with a depth of 14,130-feet. When gauged on a 0.5156-inch choke, the well potentialed 2.993 million cubic feet of gas. Production is in the Barnett Shale formation.

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The Veale Ranch Well No.25 is located six miles southeast from Aledo in the Newark, East Field. Devon Energy Production Company, L.P. has completed the well to a depth of 10,735-feet. This well was gauged on a 24/64-inch choke and potentialed 1.822 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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The Newark, East Field has seen the Christian Unit Well No.1H and the Christian Unit Well No.3H completed by Carrizo Oil & Gas, Inc. The No.1H is located within city limits of Mansfield with a depth of 11,172-feet. This well was gauged on a 30/64- inch choke and potentialed 3.701 million cubic feet of gas. The No.3H is lcoatedc 3.9 miles southeast from Everman with a depth of 10,106-feet. This well was gauged on a 35/64-inch choke and potentialed 3.101 million cubic feet of gas. Production is in the Barnett Shale formation.

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When gauged on a 64/64-inch choke, the Jack Unit Well No.A 2H potentialed 3.317 million cubic feet of gas. The well is located 2.9 miles west from Kennedale in the Newark, East Field. XTO Energy Inc. completed this well to a depth of 10,530-feet.

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Western Chief Operating, L.L.C. has completed the Carr Well No.2H in the Newark, East Field. This well is located four miles east of Azle with a dpeht of 9,568-feet. When gauged on an open choke, the well potentialed 1.007 million cubic feet of gas. Production is in the Barnett Shale formation.

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The Rambo Well No.1H is located 1.4 miles southeast of Crowley in the Newark, East Field. Chesapeake Operating, Inc. has completed the well to a depth of 11,553-feet. When gauged on a 1- inch choke, the well potentialed 7.041 million cubic feet of gas. Production is in the Barnett Shale formation.

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Tyler County

Etoco, L.P. has completed the Blackstone A-432 Unit Well No.2 in the Brookeland Field. This well is located 6.5 miles northwest of Woodville and bottoms at 14,000- feet. When gauged on a 24/64- inch choke, the well potentialed 6.340 million cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Austin Chalk, 8800 formation.