EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Anderson County

The McClinton Well No.15 and the McClinton Well No.16 will be drilled one mile south from Slocum in the Slocum Field. Lockout Corp. will drill the wells to a depth of 600-feet in the Wilson, W R Survey, A-66.

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Cherokee County

Branta Production Company LLC will drill the Goldman Well No.2 in a Wildcat Field. This well will be drilled 20.4 miles northeast from Rusk in the Reese, P Survey, A-727 and will bottom at 8,600- feet. The well may also be drilled in the Big Barnett (Travis Peak) Field, the Good Springs (Pettit) Field, the Scoober Creek (Pettit) Field, the Scoober Creek (Travis Peak) Field, the Gum Springs (Woodbine) Field, the Good Springs (Travis Peak) Field, the Big Barnett (Woodbine) Field, the Gum Springs, North (Woodbine) Field or the Big Barnett (Pettit) Field.

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The Staton Timber Well No.1R will be located 3.33 miles southwest from Jacksonville in a Wildcat Field. The well will be drilled to a depth of 10,200-feet by Parten Operating Inc. in the Merrill, J Survey, A-564. This well may also be drilled in the Ricappy (Pettit) Field.

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In a lease 6.5 miles northeast from New Summerfield, in a Wildcat Field, the Jarvis East G.U. Well No.1 will be drilled by Exco Operating Company, LP. This well will bottom at 13,000-feet in the Parker, D C Survey, A-669.

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Chesapeake Operating, Inc. will prepare to drill the Blackstone Minerals Well No.2 in a Wildcat Field. This well will be located 6.7 miles south from Forest with a depth of 18,000-feet in the Smith, J Survey, A-770. This well may also be drilled in the Decker Switch (Pettit) Field, the Decker Switch (Sub Clarksville) Field, the Decker Switch (Glen Rose) Field, the Decker Switch (Travis Peak) Field, the Decker Switch, Southeast (James Lime) Field or the Decker Switch (Woodbine) Field.

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Harrison County

In a lease 1.4 miles west from Elysian Field, Penn Virginia Oil & Gas, L.P. is preparing on drilling an additional well to a toal depth of 12,000-feet in a Wildcat Field. The well will lie in the Findley, J Survey, A-247. The will be known as the Furrh, Alice Well No.1. This well may also be drilled in the Bethany (Travis Peak Consolidated) Field or the Carthage, North (Cotton Valley) Field.

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NFR Energy, LLC is preparing for drilling for Flying LL Trust Well No.1. The well will bottom at depth of 13,000- feet in a Wildcat Field. The well will be located 0 miles within city limits of Longview and will lie in the Jordan, A Survey,A- 360. This well may also be drilled in the Oak Hill (Cotton Valley) Field or the Carthage, North (Bossier, Shale) Field.

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In the Oak Hill (Cotton Valley) Field, Sandridge Exploration And Production., LLC is preparing to drill a well to a total depth of 14,000-feet. The well will be located 6.6 miles southeast from Hallsville and will lie in the Pace, J Survey, A-541. This well may also be drilled in a Wildcat Field.

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NFR Energy, LLC is preparing to drill the Harris-Munden Gas Unit Well No.8H. The well will bottom at depth of 13,000- feet in the Carthage, North (Bossier Shale) Field. The well will be located seven miles southwest from Marshall and will lie in the Lindsey, P Survey, A-391.

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Enervest Operating, LLC is preparing to drill the Bailey Gas Unit Well No.16H to a total depth of 11,500-feet in a Wildcat Field. The well will be located five miles southwest from Hallsville. The well will lie in the Hill, J Survey,A- 300. This well may also be drilled in the Oak Hill (Cotton Valley) Field.

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The Bogue "A" Well No.6H will be drilled 0.6 miles northeast from Crossroads in the Carthage, North (Bossier Shale) Field. Comstock Oil & Gas, LP will drill the well to a depth of 12,000-feet in the Wallace, L Survey, A-744.

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Henderson County

Decker Operating Co. LLC. is preparing to drill a well to a depth of 13,000-feet in the La Rue (Pettit) Field. The well will be known as the Wilbanks Well No.1. The well will be located 3.2 miles northeast from Athens and will lie in the Walters, B C Survey, A-797. This well may also be drilled in the Thomas Lake (Cotton Valley) Field or the Thomas Lake (Rodessa B) Field.

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Panola County

The Black Unit Well No.21 will be drilled 4.6 miles northeast from Carthage in the Carthage (Cotton Valley) Field. This well will be drilled by Devon Energy Production Company, L.P. to a depth of 13,000-feet in the Mc Donald, D Survey, A-499. This well may also be drilled Wildcat Field.

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Rusk County

Enduring Resources, LLC is preparing to drill the Wilder Gas Unit Well No.101 to a total depth of 13,500-feet. The well will be located 2.7 miles northwest from Minden in the Brachfield, S.E. (Cotton Valley) Field. The well will lie in the Reel, H Survey, A- 32. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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The Jarrell Gas Unit Well No.101 is preparing for drilling by Enduring Resources, LLC. The well will bottom at a depth of 13,500-feet and will be located 3.3 miles northwest from Minden in the Brachfield, S.E. (Cotton Valley) Field. The well will lie in the Birdwell, G Survey,A-108. This well may also be drilled in Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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In a lease 4.8 miles east from Minden, Eneduring Resourcesm Inc is preparing to drill an additional well in the Brachfield, S.E. (Cotton Valley) Field. The well will be known as the Hughes Gas Unit Well No.101. The well will bottom at total depth of 13,500- feet and will lie in the Reid, P Survey, A-664. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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Smith County

3-T Exploration, Inc. is preparing to drill the Rainey Unit Well No.1 to a total depth of 7,100-feet. The well will be located six miles east from Tyler in the Lane Chapel (Paluxy A Sand) Field in the Renfro, I Survey,A-800. This well may also be drilled in a Wildcat Field.

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Wood County

Exxon Mobil Corporation is preparing to drill the Laforce, H.C. Well No.7 to a total depth of 7,600-feet in the Hawkins (Paluxy, South) Field. The well will be located 0.11 miles north from Hawkins.The well will lie in the Parker, W Survey,A-451 and may also be drilled in a Wildcat Field.

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Cherokee County

When gauged on a 25/64-inch choke, the Afton Thrash Unit 1 Well No.16 potentialed 3.264 million cubic feet of gas. The well was completed to a depth of 12,480- feet by Southwestern Energy Production Co. This well is located 3.1 miles northeast from Minden in the Overton Field. Production is in the Cotton Valley Sand formation.

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The Rube Sessions Well No.10H is located 3.6 miles northeast from Wells in the Loco Bayou Field. Southwestern Energy Production Co. has completed the well to a depth of 13,189-feet. When gauged on a 33/64-inch choke, the well potentialed 496,000 cubic feet of natural gas. Production is in the James Lime formation.

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Panola County

The Ruby Dodd Unit Well No.11 has been completed in the Carthage, Field to a depth of 9,856-feet. The operator incharge is Lacy Operations, LTD. The location of the well is 6.0 miles east of Beckvill. The well potentialed 838,000 cubic feet of natural gas, when gauged on an adjustable choke. Production Is in the Cotton Valley formation.

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The Hudson, Nell Well No.18 has been completed to a depth of 9,550-feet. The operator incharge is Devon Energy Production Co, L.P. The location of the well si 4.9 miles southwest from Carthage. When gauged on an adjustable choke, the well potentialed 1.812 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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XTO Energy Inc. has completed the Floyd Gas Unit Well No.23U in the Bethany Field. This well is located four miles east of DeBerry with a depth of 9,410- feet. When gauged on a 30/64- inch choke, the well potentialed 278,000 cubic feet of natural gas. Production is in the Travis Peak formation.

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When gauged on an adjustable choke, the CGU 18 Well No.19 potentialed 1.126 million cubic feet of natural gas. This well was completed four miles southwest from Carthage in the Carthage Field. Anadarko E & P Company LP has completed the well to a depth of 9,815-feet. Production is in the Cotton Valley formation.

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Rusk County

The Wilma Well No.1 is located nine miles east of Henderson in the Minden Field. This well was drilled by Reserve Management, Inc. to a depth of 7,700-feet. When gauged on a 18/64-inch choke, the well flowed with 196 barrels of crude. Production is in the Travis Peak Consolidated formation.

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Verado Energy, Inc. has completed the Williamson Well No.11 in the Oak Hill Field. This well is located 5.9 miles southwest from Tatum with a depth of 10,530- feet. When gauged on a 20/64- inch choke, the well potentialed 1.721 million cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 2.39 miles northeast from Minden in the Brachfield, Southeast Field, the Harrell Gas Unit No.1 Well No.11 has been completed by Fidelity Exploration & Production Co. This well bottoms at 10,915-feet and potentialed 1.486 million cubic feet of natural gas when gauged on a 24/64-inch choke. Production is in the Cotton Valley formation.

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SandRidge Onshore, LLC has completed the Spikes Gas Unit Well No.13 and the Wilkerson Gas Unit Well No.10 in the Minden Field. When gauged on a 26/64-inch choke, the No.13 well potentialed 2.956 million cubic feet of natural gas. The well was completed 4.7 miles south from Henderson to a depth of 10,875- feet. When gauged on a 28/64- inch choke, the No.10 well potentialed 3.817 million cubic feet of natural gas. The well was completed six miles southeast from Henderson to a depth of 10,887-feet. Production is in the Cotton Valley Consolidated formation.

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Smith County

Southwestern Energy Production Co. has completed the Sallie M. Warren Heirs Gas Unit Well No.14 and the Sallie M. Warrens Heirs Gas Unit Well No.15 in the Overton Field. The No.14 is located 1.5 miles northwest from Troup with a depth of 12,055-feet. When gauged on a 26/64-inch choke, the well potentialed 2.102 million cubic feet of gas. The No.15 is located 1.9 miles northwest from Troup with a depth of 12,137-feet. When gauged on a 26/64-inch choke, the well potentialed 2.039 million cubic feet of gas. Production is in the Cotton Valley Sand formation.

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Upshur County

The Rosewood Field has seen the Barber Gas Unit No.1 Well No.2 completed by McBee Operating Company, LLC. This well is located 3.7 miles northwest of Gilmer with a depth of 11,315- feet. When gauged on a 48/64- inch choke, the well potentialed 766,000 cubic feet of gas. Production is in the Cotton Valley formation.