EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Anderson County

In a lease two miles northwest from Slocum, in the Delaney Branch (Wilcox) Field, the Burnett Well No.1 will be drilled by Wilson, Don H., Inc. This well will be drilled to bottom at 3,000-feet in the Martin, P Survey, A-41.

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Brookside Storage LLC will drill the Bethel Salt Dome Well No.1A in the Bethel Dome (Storage) Field. This well will be located two miles south from Bethel in the Kinley, T H Survey, A-450 with a depth of 6,000-feet.

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A Wildcat Field will see the James Well No.1 drilled to a depth of 600-feet by Carrizo Oil & Gas, Inc. This well will be located 4.6 miles northeast from Elkhart in the Davis, W T Survey, A-255 and may also be drilled in the Camp Hill Field.

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Angelina County

The Hightower Well No.1 will be drilled 15 miles northwest from Lufkin in the Cecil Cox (Travis Peak) Field. This well will be drilled by C.W. Resources, Inc. in the Thomas R. Walker Survey, A-650 to a depth of 11,600-feet.

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Cherokee County

A Wildcat Field will see the Nichols Well No.1 drilled by Parten Operating Inc. to a depth of 10,200-feet. This well will be located 2.25 miles southeast from Jacksonville in the Pineda, J Survey, A-41.

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Chesapeake Operating, Inc. will drill the Dingee Well No.1 in a Wildcat Field. This well will be located 6.7 miles northwest from Wells in the Borsoley, M J Survey, A-6 with a depth of 15,000-feet. This well may also be drilled in the Decker Switch (Glen Rose) Field, the Decker Switch, Southeast (James Lime) Field, the Decker Switch (Sub Clarksville) Field, the Decker Switch (Travis Peak) Field, the Decker Switch (Woodbine) Field or the Decker Switch (Pettit) Field.

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The Sparkman Gas Unit Well No.1 and the Seymore Gas Unit Well No.1 will be drilled by XTO Energy Inc. in the Doyle Creek (Travis Peak) Field. The Sparkman Gas Unit Well No.1 will be drilled 6.4 miles northwest from Wells to a depth of 13,000-feet by in the Durst, J Survey, A-15. The Seymore Gas Unit Well No.1 will be drilled 3.6 miles northwest from Wells to a dpetho f 13,000-feet in the Durst, J Surey, A-15. The well may also be drilled in the Doyle Creek (Pettit) Field.

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Gregg County

The Judge Daniels GU 1 Well No.18, the Judge Daniels GU 1 Well No.20 and the Judge Daniels GU 1 Well No.21 will be drilled in the Danville (Travis Peak-Cotton Valley Consolidated) Field by Samson Lone Star, LLC. The wells will bottom at 13,000-feet two miles east from Kilgore. The No.18 will lie in the Walker, P Survey, A-210. The No.20 and the No.21 will lie in the Wells, H Survey, A- 222.

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Samson Lone Star, LLC is preparing to drill the Judge Daniels GU 1 Well No.17 in the Danville (Travis Peak-Cotton Valley Consolidated) Field. This well will be located 2.5 miles east from Kilgore in the Wells, H Survey, A-222 with a depth of 13,000-feet.

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In a lease 4.3 miles northeast from Kilgore, in the Danville (Travis Peak-Cotton Valley Consolidated) Field, the Griffin Ranch G.U. 2 Well No.21 will be drilled by Exco Operating Company, LP. This well will bottom at 11,000-feet in the Edwards, H Survey, A-64 and may also be drilled in a Wildcat Field.

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Exco Operating Company, LP will also prepare the Griffin Ranch G.U. 2 Well No.19 for drilling in the Danville (Travis Peak-Cotton Valley Consolidated) Field. This well will be located 4.8 miles northeast from Kilgore in the Edwards, H Survey, A-64 with a depth of 13,000-feet. This well may also be drilled in a Wildcat Field.

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Harrison County

In a lease four miles northeast from Karnack in the Woodlawn (Cotton Valley) Field, the Jones Well No.1 and the Jones Well No.2 will be drilled by Forest Oil Corp. These wells will bottom at 13,500-feet in the Adams, J Survey, A-33 and may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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The Loftis Gas Unit Well No.15 will be drilled four miles southwest from Hallsville in a Wildcat Field. this well will be drilled to a depth of 11,500-feet by Enervest Operating, L.L.C. The well may also be drilled in the Oak Hill (Cotton Valley) Field.

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Samson Lone Star, LLC will drill the SWMF GU 2 Well No.1 in the Waskom (Cotton Valley) Field. This well willb e located 9.5 miles northwest from Waskom with a depth of 13,000-feet. The well will lie in the Ewing, W Survey, A-6 and may also be drilled in the Scottsville, North (Travis Peak) Field, a Wildcat Field, the Scottsville, North (Pettit Lower) Field, the Scottsville, North (Travis Peak 6200) Field, the Waskom (Pettit Lower) Field, the Scottsville, North (Page) Field, the Waskom (Travis Peak Upper) Field or the Scottsville, East (Travis Peak) Field.

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The Rogers Gas Unit Well No.2H will be drilled to a depth of 13,500-feet in the Woodlawn (Cotton Valley) Field by Wagner & Brown, Ltd. This well will be located one mile northwest from Karnack in the Ward, W R D Survey, A-745.

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In a lease 18 miles west from Marshall, in the Lansing, North (Cotton Valley, Lower) Field, the Burton Well No.2H will be drilled by Tanos Exploration, LLC. This well will bottom at 12,000-feet in the Hill, D Survey, A-301 and may also be drilled in a Wildcat Field.

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Henderson County

The Wofford Heirs Well No.1 will be drilled 3.7 miles northeast from Athens in the La Rue (Pettit) Field by Decker Operating Company, L.L.C. This well will bottom at 13,000- feet in the Henry, J J B Survey, A-332 and 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 Chadwick Unit Well No.27 will be drilled in the Carthage (Cotton Valley) Field by Devon Energy Production Company, L.P. This well will be located 3.5 miles north from Carthage in the White, S Survey, A-743 and will bottom at 13,000-feet. This well may also be drilled in a Wildcat Field.

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St. Mary Land & Exploration Co. will drill the Headrick Well No.3 to a depth of 12,000-feet in a Wildcat Field. The well will be located 4.7 miles southeast from DeBerry in the English, W Survey, A-194 and may also be drilled in the Centennial, East (Cotton Valley) Field.

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In a lease 6.7 miles southwest from Tatum in the Beckville (Cotton Valley) Field, the Waldrop, G.T. GU Well No.3 will be drilled by Goodrich Petroleum Co. This well will bottom at 13,500-feet in the Scruggs, C S Survey, A-614. The well may also be drilled in a Wildcat Field.

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The Blount Well No.5 will be drilled two miles east from Joaquin in the Joaquin (Pettit) Field. Samson Lone Star, LLC will drill the well to a depth of 7,800-feet in the Smith, M Survey, A-592 and may also be drilled in a Wildcat Field or the Joaquin (Travis Peak) Field.

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The Beckville, North (Cotton Valley) Field will see the Genecov Well No.10 drilled by Bachtell Oil & Gas, Ltd. This well will be located 6.9 miles east from Tatum in the Knoll, P Survey, A-375 with a depth of 11,000-feet. The well may also be drilled in a Wildcat Field.

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Texas American Resources Co. will drill the Glovier Hamilton Well No.22 and the Glovier Hamilton Well No.28 in the Beckville (Cotton Valley) Field. The No.22 will be located three miles northwest from Beckville in the Gooden, W Survey, A- 221. The No.28 will be located 2.4 miles northwest from Beckville in the Hamilton, W Survey, A-272. Total depth of both wells will be 11,600-feet.

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Robertson County

The Beal Estate Gas Unit Well No.16, the Mitchell Unit No.II Well No.12 and the Mitchell Unit No.II Well No.16 will be drilled in the Bald Prairie (Cotton Valley Consolidated) Field by XTO Energy Inc. The Beal Estate Gas Unit Well No.16 well will be drilled 11.9 miles northeast from Franklin in the Owens, W Survey, A-297 and will bottom at 14,100-feet. The Mitchell Unit No.II Well No.12 well will be drilled 11.3 miles northeast from Franklin in the Denson, O Survey, A-126 and will bottom at 13,600-feet. The Mitchell Unit No.II Well No.16 will be drilled 11.2 miles northeast from Franklin in the Denson, O Survey, A-126 and will bottom at 14,100-feet.

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In a lease four miles northwest from Wheelock, in the Ici (Georgetown) Field, the BR Cotton Well No.1 will be drilled by Burlington Resources O & G Company LP. This well will bottom at 13,700-feet in the Penn, A Survey, A-309.

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Rusk County

Goodrich Petroleum Co. will drill the Taylor, A.B. Well No.3 and the Siler Heirs Well No.9. The No.3 well will be drilled in the Beckville (Cotton Valley) Field 6.7 miles southwest from Tatum. The well will bottom at a depth of 13,500-feet in the Wyatt, R Survey, A-867 and may also be drilled in a Wildcat Field. The No.9 well will be drilled in the Henderson, East (Cotton Valley) Field 4.4 miles southwest from Henderson. The well will bottom at a depth of 13,000-feet in the Smith, H M Survey, A-702. This well may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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The Rogers, Travis GU Well No.2 will be drilled 4.6 miles southwest from Henderson in the Henderson, East (Cotton Valley) Field by Goodrich Petroleum Co. This well will bottom at 13,000-feet in the Smith, H M Survey, A-702.

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The Brachfield, Southeast (Cotton Valley) Field will see the Green Gas Unit 1 Well No.105, the Purdie Gas Unit 1 Well No.101, the Purdie Gas Unit 1 Well No.102 and the Purdie Gas Unit 1 Well No.103 drilled to a depth of 13,500-feet by Enduring Resources, LLC. The No.105 well will be located 2.4 miles west from Minden in the Reel, J Survey, A-33. The No.101 well will be drilled 3.2 miles west from Minden in the Reel, J Survey, A-33. The No.102 well will be located 3.1 miles northwest from Minden. The No.103 well will be located 2.8 miles southwest from Minden in the Reel, J Survey, A-33. The wells may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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In a lease 2.1 miles west from Minden in the Brachfield, Southeast (Cotton Valley) Field, the TXU Gas Unit Well No.101 will be drilled by Enduring Resources, LLC. The well will bottom at 13,500-feet in the Reel, J Survey,A-33 and may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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Enduring Resouces, LLC will drill the Green Gas Unit 1 Well No.102, the Tufco Gas Unit 1 Well No.101 and the Wilder Gas Unit Well No.102 in the Brachfield, Southeast (Cotton Valley) Field. The Green Gas Unit 1 Well No.102 will bottom at 13,500-feet 2.6 miles west from Minden in the Reel, J Survey, A-33. The Tufco Gas Unit 1 Well No.101 will bottom at 13,500-feet one mile west from Minden. The Wilder Gas Unite Well No.102 will bottom at 13,500-feet in the Reel, H Survey, A-32 2.9 miles northwest from Minden. The wells may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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The Oak Hill (Cotton Valley) Field will see the Cherokee Lake Gas Unit No.1 Well No.6 drilled by Verado Energy, Inc. The well will be located seven miles northwest from Tatum in the Simpson, D Survey, A-37 with a depth of 12,000-feet.

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In a lease 3.3 miles south from Henderson, in the Minden (Cotton Valley Consolidated) Field, the Brightwell Well No.2 will be drilled to a depth of 14,000-feet by Sandridge Onshore, LLC. This well will lie in the Smith, H M Survey, A-702 and may also be drilled in a Wildcat Field.

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Smith County

The Kidd-Dale Unit Well No.1 will be drilled by 3-T Exploration, Inc. in the Lane Chapel (Paluxy A Sand) Field. This well will be located 7.5 miles east from Tyler with a depth of 7,100-feet in the Renfor, I Survey, A-800 and may also be drilled in a Wildcat Field.

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In a lease 0.8 miles northwest from Troup, in the Overton (Cotton Valley Sand) Field, the Kirkpatrick Gas Unit 1 Well No.14 will be drilled by Southwestern Energy Production Co. This well will bottom at 12,500- feet in the George, W Survey, A- 1099 and may also be drilled in a Wildcat Field.

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Upshur County

In a lease 6.6 miles west from Gilmer in the Rosewood (Cotton Valley) Field, the J.K. Leard Gas Unit No.1 Well No.7 will be drilled by XTO Energy Inc. This well will bottom at 11,100-feet in the Mc Fadden, W Survey, A-295.

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Cordillera Texas, L.P. will drill the J.L. Hunter Gas Unit Well No.4H in a Wildcat Field. This well will bottom at 13,000- feet in the Benigno Daveport, J B Survey, A-1 4.2 miles southwest from Gilmer. This well may also be drilled in the Gilmer (Cotton valley Sands) Field, the Gilmer (Cotton Valley Upper) Field or the Wilkins, North (Cotton Valley Sand) Field.

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Wood County

The Hawkins Field Unit Well No.4254 will be drilled 1.28 miles northeast from Hawkins in the Hawkins Field. This well will be drilled to a depth of 6,100-feet by Exxon Mobil Corp. The well will lie in the Moseley, J P Survey, A-384.

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Marion County

The Harris Well No.2 and the Childers Well No.2 have completed by Pegasi Operating, Inc. in the Rodessa Field. The Harris Well No.2 was completed three miles north of Jefferson with a depth of 10,106-feet. When gauged on an open choke, the well flowed with 15 barrels of crude. The Childers Well No.2 was completed three miles north of Jefferson with a depth of 10,040-feet. When gauged on an open choke, the well flowed with 15 barrels of crude. Production is in the Cotton Valley Consolidated formation.

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When gauged on a 1.75- inch choke, the Clear Lake GU Well No.1H potentialed 4.279 million cubic feet of gas. This well was completed five miles north of Karnack in the Woodlawn Field by Wagner & Brown, Ltd. Total depth is 12,934-feet. Production is in the Cotton Valley formation.

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Panola County

The Smith Well No.2 is located 11 miles south of Carthage in the Carthage, South Field. M.E. Operating & Services, Inc. has completed the well to a depth of 10,175-feet. When gauged on a 24/64-inch choke, the well potentialed 1.443 million cubic feet of gas. Production is in the Cotton Valley formation.

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Anadarko E & P Company LP has completed the Kyle, Fred Gas Unit Well No.16, the Williams-Wall Gas Unit Well No.13 and the CGU 8 Well No.19H in the Carthage Field. The No.16 well is located 4.5 miles southeast of Carthage. No total depth recorded. When gauged on an adjustable choke, the well potentialed 1.152 million cubic feet of gas. The No.13 well is located 8.6 miles southeast from Carthage with a depth of 9,530-feet. When gauged on an adjustable choke, the well potentialed 1.295 million cubic feet of gas. The No.19H well is located 3.8 miles southwest from Carthage with a depth of 11,100-feet. When gauged on an adjustable choke, the well potentialed 1.121 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Carthage Field has seen the Williamson Well No.23 completed by Devon Energy Production Company, L.P. to a depth of 9,667-feet. This well is located 4.4 miles southwest from Carthage. When gauged on an adjustable choke, the well potentialed 1.756 million cubic feet of gas. Production is in the Cotton Valley formation.

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The John S. Neal Unit Well No.7 H has been completed to a depth of 11,775-feet by Anadarko E & P Company LP. This well is located six miles southeast of Carthage in the Carthage Field. The well was gauged on an adjustable choke and potentialed 1.436 million cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 13.6 miles southeast from Henderson, in the Beckville Field, the Sealey, G.T. Well No.3 has been completed by Goodrich Petroleum Co. This well bottoms at 10,230-feet and potentialed 723,000 cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Allison Cassity Well No.2 potentialed 283,000 cubic feet of natural gas. The well was completed to a depth of 11,300-feet in the Brachfield, Southeast Field by Cabot Oil & Gas Corp. Location is 0.9 miles northwest from Long Branch with production in the Cotton Valley formation.

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Glassell Production Company, Inc. has completed the Dunaway Gas Unit Well No.13 in the Carthage Field. This well is located 8.5 miles northeast from Carthage with a depth of 7,000- feet. When gauged on an adjustable choke, the well potentialed 298,000 cubic feet of natural gas. Production is in the Lower Pettit 6100 formation.

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Rusk County

When gauged on a 23/64- inch choke, the Texana GU No.1 Well No.4 is potentialed 1.376 million cubic feet of gas. The well is located 5.5 miles southwest from Mt. Enerterprise. Samson Lone Star, LLC has completed the well to a depth of 8,693-feet in the Trawick Field. Production is in the Travis Peak formation.

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There have been four new wells completed in the Minden Field by El Paso E & P Company, L.P. The Kangerga 2 Well No.6 is located 1.20 miles south from Henderson with a depth of 10,908-feet and potentialed 1.258 million cubic feet of gas when gauged on a 20/64-inch choke. The Viper 1 Well No.14 is located 4.9 miles southeast from Henderson with a depth of 10,950-feet and potentialed 1.389 million cubic feet of gas when gauged on a 18/64-inch choke. The Viper 1 Well No.15 is located 3.8 miles southeast from Henderson with a depth of 10,950-feet and potentialed 1.282 million cubic feet of gas when gauged on a 20/64-inch choke. The Watkins Scholarship Trust Well No.5 is located 2.7 miles southeast from Henderson with a depth of 10,950-feet and potentialed 535,000 cubic feet of gas when gauged on a 22/64- inch choke. Production is in the Cotton Valley Consolidated formation.

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XTO Energy Inc. has completed the Joe Pearson Gas Unit Well No.3 in the Oak Hill Field. This well is located 7.90 miles northwest of Tatum with a depth of 11,030-feet. When gauged on a 24/64-inch choke, the well potentialed 823,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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San Augustine County

The Forbis McKinney Well No.2 is located 11.5 miles southwest of Center with a depth of 12,251-feet. Cabot Oil & Gas Corp. has completed the well in the Angie Field. This well potentialed 12.978 million cubic feet of natural gas when gauged on a 46/64-inch choke. Production is in the James Lime formation.

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Upshur County

The Bogel Gas Unit No.2 Well No.4 is located 5.2 miles west of Gilmer in the Rosewood Field. McBee Operating Co., LLC has completed the well to a depth of 11,035-feet. When gauged on a 48/64-inch choke, the well potentialed 437,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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