EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Anderson County

The Worley Gas Unit Well No.1 will be drilled 10.6 miles east from Palestine in a Wildcat Field. O'Benco, Inc. will drill the well to a depth of 13,000- feet in the Duty, R Survey, A- 233.

******

Cherokee County

The Chronister Heirs Well No.52 will be drilled 3.4 miles north from Wells in the Doyle Creek (Travis Peak) Field. This well will bottom at 12,800-feet in the Durst, J Survey, A-15 drilled by XTO Energy Inc. The well may also be drilled in the Doyle Creek (Pettit) Field.

******

Branta Production Company LLC will drill the Goldman Well No.3 in a Wildcat Field. This well will be located 20.4 miles northeast from Rusk with a depth of 8,600-feet in the Reese, P Survey, A-727. The well may also be drilled in the Scoober Creek (Travis Peak) Field, the Gum Springs, North (Woodbine) Field, the Good Springs (Travis Peak) Field, the Big Barnett (Travis Peak) Field, the Scoober Creek (Pettit) Field, the Good Springs, West (Woodbine) Field, the Good Springs (Pettit) Field, the Gum Springs (Woodbine) Field, the Big Barnett (Pettit) Field or the Big Barnett (Woodbine) Field.

******

A Wildcat Field will see a new well drilled by Chesapeake Operating, Inc. to a depth of 14,000-feet. The Hauserman Well No.2 will be drilled 9.1 miles northwest from Wells in the Harrell, L F Survey, A-392. This well may also be drilled in the Decker Switch (Sub Clarksville) Field, the Decker Switch (Travis Peak) Field, the Decker Switch (Glen Rose) Field, the Decker Switch, Southeast (James Lime) Field, the Decker Switch (Woodbine) Field or the Decker Switch (Pettit) Field.

******

The Lily Andress Well No.1 will be drilled by Chesapeake Operating, Inc. in a Wildcat Field. This well will bottom at 14,000-feet 7.2 miles south from Forest in the Williams, B Survey, A-55. This well may also be drilled in the Decker Switch (Travis Peak) Field, the White Oak Creek (Travis Peak) Field or the Decker Switch (Pettit) Field.

******

Gregg County

The P. Russell - A- Well No.2 will be drilled 7.6 miles southeast from Longview in a Wildcat Field. This well will be drilled to bottom at 13,200-feet in the Hoover, H Survey, A-91 by Shoco Production, L.P. The well may also be drilled in the Sunshine (Lower Cotton Valley) Field.

******

Harrison County

A Wildcat Field will see the Brown, L.D. Well No.4A drilled by Howell Oil & Gas, Inc. This well will bottom at 8,500-feet six miles east from Harleton in the Denton, J T Survey, A-199. The well may also be drilled in the Woodlawn (Rodessa) Field, the Gooch-Gant (Travis Peak) Field, the Hallsville, South (Page) Field or the Hallsville, East (Pettit) Field.

******

Riverstone Energy Operating, LLC will drill the Mann Well No.1 in a Wildcat Field. This well will bottom at 9,800- feet 6.4 miles southwest from Waskom in the Hooper, B F Survey, A-296. This well may be drilled in the Waskom (Cotton Valley) Field.

******

The K Well No.7H will be drilled seven miles southeast from Marshall in the Carthage, North (Bossier Shale) Field. This well will be drilled to a depth of 14,000-feet by GMX Resources Inc. The well will lie in the Maximillian, J Survey, A- 444 and may also be drilled in the Bethany (Pettit 6170) Field, the Carthage, North (Cotton Valley) Field, a Wildcat Field or the Bethany (Travis Peak Consolidated) Field.

******

In a lease 8.1 miles south from Marshall in the Blocker (Cotton Valley) Field, the Jossie Taylor Becker Gas Unit Well No.7 will be drilled by Brammer Engineering, Inc. This well will bottom at 10,300-feet in the English, E Survey, A-234.

******

Penn Virginia Oil & Gas, L.P. will drill the Steeg Gas Unit Well No.1H in a Wildcat Field. This well will bottom at 14,000-feet in the Spain, E D Survey, A-22. This well will be located 7.5 miles northeast from Marshall and may also be drilled in the Carthage, North (Bossier Shale) Field, the Carthage, North (Cotton Valley) Field or the Bethany (Travis Peak Consolidated) Field.

******

The Lucille Justice Gas Unit No.1 Well No.3H will be drilled 10.5 miles south from Marshall in the Carthage, North (Bossier Shale) Field by Coronado Energy E&P Company, LLC. This well will be drilled to a depth of 16,500-feet in the Monday, S Survey, A-14 and may also be drilled in a Wildcat Field.

******

GMX Resources Inc. will drill the Baldwin Well No.15H to a depth of 14,000-feet in the Carthage, North (Bossier Shale) Field. 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 Bethany (Pettit 6170) Field, the Bethany (Travis Peak Consolidated) Field or a Wildcat Field.

******

In a lease 4.3 miles southwest from Hallsville, in the Oak Hill (Cotton Valley) Field, the Baker Gas Unit Well No.1 will be drilled by Craton Energy Holdings III, LP. This well will bottom at 11,500-feet in the Pedraso, V Survey, A-540.

******

Penn Virginia Oil & Gas, L.P. will prepare to drill the Crawford Gas Unit Well No.7 in the Carthage, North (Cotton Valley) Field. This well will be located 13.2 miles southeast from Marshall in the Jacob S. Bennett Survey, A-115 and will bottom at 13,000-feet.

******

Nacogdoches County

Exxon Mobil Corp. will drill the Trawick Gas Unit 9 Well No.10 2.88 miles southeast from Cushing in the Trawick (Travis Peak) Field. This well will bottom at 9,800-feet in the Bennett, Z Survey, A-9 and may also be drilled in the Trawick (James) Field, a Wildcat Field or the Trawick (Pettit) Field.

******

The Mills Well No.1 and the Delgado Well No.1 will be drilled by EOG Resources, Inc. in a Wildcat Field. The Mills Well No.1 will be located 13 miles northeast from Nacogdoches in the Mills, M J Survey, A-407 with a depth of 10,500- feet. The Delgado Well No.1 will be located 13.4 miles northeast from Nacogdoches in the Pantaleon, Hrs. J L Survey, A- 448. These wells may also be drilled in the Waterman (Travis Peak) Field.

******

Samson Lone Star, LLC will drill the Andy GU 1 Well No.1 in the Martinsville (Travis Peak) Field. This well will bottom at 11,000-feet in the Hargis, R A Survey, A-689 17 miles east from Nacogdoches. This well may also be drilled in a Wildcat Field, the Nacogdoches, East (Pettit) Field or the Nacogdoches, East (James Lime) Field.

******

Panola County

In a lease 9.4 miles southwest from Tatum, in the Beckville (Cotton Valley) Field, the A. Jones GU Well No.5 will be drilled by Goodrich Petroleum Co. This well will bottom at 11,500-feet in the Bufford, W Survey, A-67 and may also be drilled in the Beckville (Travis Peak) Field or a Wildcat Field.

******

XTO Energy Inc. will prepare to drill the Harris-Drummond Well No.3H to a depth of 12,300-feet in the Carthage, North (Bossier Shale) Field. This well will be located 6.9 miles southeast from DeBerry in the Woodley, W H Survey, A- 720 and may also be drilled in a Wildcat Field.

******

The Edens Well No.20 will be drilled nine miles west from Carthage in the Beckville (Cotton Valley) Field by Chinn Exploration Co. This well will bottom at 11,200-feet in the Smith, E Survey, A-601.

******

A Wildcat Field will see the Hickey Well No.2H drilled by Basa Resources, Inc. The well will be located 4.7 miles southeast from DeBerry in the English, W Survey, A-194. Total depth will be 10,500-feet. This well may also be drilled in the Carthage, North (Cotton Valley) Field, the Midyett (Pettit Lower) Field, the Bethany (Werner) Field, the Centennial, East (Cotton Valley) Field or the Bethany (Travis Peak Consolidated) Field.

******

Classic Operating Company LLC will drill the Wiener Estate F Well No.1 in the Joaquin (Travis Peak) Field. This well will be located 4.5 miles north from Joaquin in the Gray, R Survey, A-249 and will bottom at 10,000-feet. This well may also be drilled in the Carthage (Cotton Valley) Field.

******

Robertson County

The Bear Creek Well No.3 will be drilled 13 miles northeast from Franklin in the Bohlwhite (Cotton Valley Lime) Field by Red Willow Production, LLC. This well will bottom at 17,000-feet in the De La Concepcion Marquez, M Survey, A-25 and may also be drilled in a Wildcat Field.

******

O'Benco, Inc. will drill the Devon Fee 5 Well No.1, the White Well No.2 and the Devon Fee 6 Gas Unit Well No.2 in the Bald Prairie (Cotton Valley Consolidated) Field. The Devon Fee 5 Well No.1 well will be located 11.1 miles northwest from Franklin with a depth of 12,800-feet in the Smith, W J Survey, A-336. The White Well No.2 well will be located ten miles northwest from Franklin in the Love, J M Survey, A-210. The Devon Fee 6 Gas Unit Well No.2 will be located 8.5 miles northwest from Franklin in the Love, J M Survey, A-210. These wells may also be drilled in a Wildcat Field.

******

The Morgan Creek Village Inc No.1 GA Well No.2 will be drilled 2.5 miles northwest from Franklin in the Bald Prairie (Cotton Valley Consolidated) Field. This well will be drilled by XTO Energy Inc. to a depth of 16,000-feet in the Tomlinson, A Survey, A-391.

******

The Redden Unit Well No.2 and the Meadors Well No.6 will be drilled by EnCana Oil & Gas (USA) Inc. The No.2 well will be located 8.6 miles northeast from Franklin. The No.6 well will be located 7.1 miles northeast from Franklin. These wells will bottom at 20,000-feet in the John Amoruso (Bossier) Field and will lie Pereira, P/Grande, J & M Survey, A-32.

******

XTO Energy Inc. will drill the Billy Turner Gas Unit Well No.5 in the Bald Prairie (Cotton Valley Consolidated) Field. This well will bottom at 13,660-feet 15.8 miles northeast from Franklin in the De La Concepcion Marquez, M Survey, A-25.

******

Rusk County

In a lease two miles northwest from Henderson, in the Minden (Cotton Valley Lime) Field, the Gray 1 Gas Unit Well No.04 will be drilled by NFR Energy, LLC. This well will bottom at 13,000-feet in the Read, J. B. Survey, A-678 and may also be drilled in the Oak Hill (Cotton Valley) Field, a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

******

Anadarko E & P Company LP will drill the Kennedy G.U. 1 Well No.11 in the Oak Hill (Cotton Valley) Field. The well will be located 21.2 miles northeast from Henderson in the Williamson, R Survey, A-46. Total depth will be 12,000-feet.

******

The Rives, W.C. Well No.2 will be located 5.5 miles southeast from Henderson in the Henderson, South (Pettit - A-) Field. This well will be drilled to a depth of 11,000-feet by Basa Resources, Inc. in the Jackson, W Survey, A-457. This well may also be drilled in the Laneville, Northeast (Pettit, Lower) Field, the Minden (Cotton Valley Consolidated) Field or the Minden (Travis Peak Consolidated) Field.

******

Wood County

In a lease 1.65 miles northwest from Hawkins, in the Hawkins Field, the Hawkins Field Unit Well No.1136 and the Hawkins Field Unit WelL No.1063 will be drilled by Exxon Mobil Corp. The No.1136 will bottom at 6,200- feet and the No.1063 will bottom at 6,100-feet. These wells will lie in the Pollock, J Survey, A-449.

****** COMPLETIONS Gregg County

The Griffin Ranch G.U. 5 Well No.3 has been completed by Geo-Vest of Texas, Inc. in the Danville Field. This well bottoms at 8,124-feet 5.5 miles east northeast from Kilgore. When gauged on a 48/64-inch choke, the well potentialed 1.409 million cubic feet of gas. Production is in the Pettit - A- Oil formation.

******

Geo-Vest of Texas, Inc. has completed the Griffin Ranch G.U. 1 Well No.10 and the Griffin Ranch G.U. 7 Well No.8 in the Danville Field. The No.10 well is located 5.1 miles east northeast from Kilgore with a depth of 10,776-feet. When gauged on a 24/64-inch choke, the well potentialed 1.450 million cubic feet of gas. Production is in the Travis Peak-Cotton Valley Consolidated formation. The No.8 well bottoms at 7,901-feet, no location recorded. When gauged on a 30/64- inch choke, the well potentialed 3.400 million cubic feet of gas. Production is in the Travis Peak Consolidated formation.

******

When gauged on a 16/64- inch choke, the Gladewater Gas Unit 17 Well No.21 potentialed 932,000 cubic feet of gas. This well is located within city limits of Gladewater. EXCO Operating Company, LP has completed the well to a depth of 10,915-feet. Production is in the Cotton Valley formation.

******

Harrison County

The Hardwood Field has seen the Gibson Well No.1 completed by Penn Virginia Oil & Gas LP. This well was drilled 11.8 miles southeast from Marshall to a depth of 12,280-feet. When gauged on a 30/64-inch choke, the well potentialed 1.010 million cubic feet of gas. Production is in the Cotton Valley formation.

******

There have been four wells completed by Penn Virginia Oil & Gas, L.P. The Fogle Gas Unit Well No.4 is located 12.3 miles southeast from Marshall in the Hardwood Field with a depth of 10,340-feet. This well potentialed 1.777 million cubic feet of gas when gauged on a 15/64- inch choke. The Bookout Gas Unit Well No.8 is located 3.7 miles northeast from Crossroads in the Carthage, North Field with a depth of 9,960-feet. This well potentialed 686,000 cubic feet of gas when gauged on a 28/64-inch choke. The Devon Gas Unit Well No.2 is located 7.4 miles west from Marshall in the Woodlawn, Southwest Field with a depth of 10,570-feet. This well potentialed 819,000 cubic feet of gas when gauged on a 20/64-inch choke. The Lawless Rhoades Well No.14 is located 4.4 miles west from Elysian Fields in the Carthage, North Field with a depth of 10,165-feet. This well potentialed 1.101 million cubic feet of gas when gauged on a 24/64- inch choke. Production is in the Cotton Valley formation for all four wells.

******

Berry Oil Co. has completed two new wells. The Meek- Haynes Unit Well No.8 is located ten miles south from Marshall in the Darco, Southeast Field with a depth of 11,910- feet. This well was gauged on a 14/64-inch choke and potentialed 1.048 million cubic feet of gas. Production is in the Cotton Valley formation. The Meek-Haynes Unit Well No.8 is located ten miles south from Marshall in the Carthage, North Field with a depth of 11,910- feet. This well was gauged on a 14/64-inch choke and potentialed 1.137 million cubic feet of gas. Production is in the Bossier Shale formation.

******

NFR Energy, LLC has completed the Bartley Well No.01 in the Carthage, North Field. This well is located 10.5 miles southeast from Marshall with a depth of 11,363-feet. This well potentialed 1.358 million cubic feet of gas when gauged on a 45/64- inch choke. Production is in the Bossier Shale formation.

******

The Bivins Gas Unit 1 Well No.10, the Loftis Well No.4 and the Reese Well No.1 have been completed by Valence Operating Co. The No.10 well is located 3.2 miles northeast from Easton in the Oak Hill Field. This well bottoms at 12,343-feet and potentialed 529,000 cubic feet of gas when gauged on a 26/64- inch choke. The No.4 is located five miles northwest from Easton in the Oak Hill Field. This well bottoms at 12,679-feet and potentialed 464,000 cubic feet of gas when gauged on a 22/64- inch choke. The No.1 well is located 3.8 miles southeast from Darco in the Darco, Southeast Field. This well bottoms at 11,977-feet and potentialed 697,000 cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Cotton Valley formation.

******

Nacogdoches County

The Barrett-Charles GU 1 Well No.1 has been completed three miles south from Cushing by Samson Lone Star, LLC. This well was drilled to a depth of 10,050-feet in the Trawick Field. This well potentialed 1.466 million cubic feet of gas when gauged on a 31/64-inch choke. Production is in the Pettit formation.

******

When gauged on a 0.75- inch choke, the Trawick GU 9 Well No.9-C potentialed 912,000 cubic feet of gas. This well was completed 2.82 miles southeast of Cushing in the Trawick Field. This well bottoms at 8,927-feet drilled by Exxon Mobil Corp. Production is in the Pettit formation.

******

Samson Lone Star, LLC has completed the J&A Durham GU 1 Well No.2 and the Lola D GU 1 Well No.6 in the Douglass, West Field. The No.2 is located 9.5 miles northwest from Nacogdoches with a depth of 10,215-feet and potentialed 2.538 million cubic feet of gas when gauged on a 48/64-inch choke. The No.6 is located is located 11 miles northwest from Nacogdoches with a depth of 10,068-feet and potentialed 2.019 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Travis Peak formation.

******

Exxon Mobil Corp. has completed the Trawick GU 17 Well No.11-C in the Trawick Field. This well is located 3.3 miles east of Cushing with a depth of 8,895-feet. When gauged on a 0.75-inch choke, the well potentialed 976,000 cubic feet of gas. Production is in the Pettit formation.

******

Panola County

The Holland Gas Unit No.1 Well No.4-T has been completed by Craton Energy Holdings III, LLC in the Carthage Field. This well bottoms at 10,088-feet and potentialed 553,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

******

Chevron U.S.A. Inc. has completed the Beall, W. F. Well No.A-10 in the Carthage Field. This well bottoms at 8,150-feet three miles east from Beckville. When gauged on an adjustable choke and flowed with 14.26 barrels of crude. Production is in the Travis Peak 6400 formation.

******

The Richardson A Well No.2H is located 13.10 miles east from Carthage in the Carthage Field. This well was completed by St. Mary Land & Exploration Co. to a depth of 12,205-feet. When gauged on a 128/64-inch choke, the well potential3ed 3.675 million cubic feet of gas. Production is in the Cotton Valley formation.

******

The Carthage Field has seen the Sterrett Well No.18 completed by Valence Operating Co. to a depth of 11,705-feet. This well is located 3.8 miles northeast from Beckville. When gauged on a 46/64-inch choke, the well potentialed 624,000 cubic feet of gas. Production is in the Cotton Valley formation.

******

When gauged on a 64/64- inch choke, the Preston Hart Well No.2 potentialed 1.992 million cubic feet of gas. This well was completed 1.25 miles north of Joaquin in the Joaquin Field by Classic Operating Company LLC. This well bottoms at 8,250-feet with production in the Travis Peak formation.

******

Tarrant County

Chesapeake Operating, Inc. has completed two new wells in the Newark, East Field. The Shaw B Well No.3-H is located 14.4 miles north from Cleburne with a depth of 11,224-feet and potentialed 1.812 million cubic feet of gas when gauged on a 64/64-inch choke. The DFW Well No.C5 HM is located 22 miles northeast from Fort Worth with a depth of 11,754- feet and potentialed 2.084 million cubic feet of gas when gauged on a 1-inch choke. Production is in the Barnett Shale formation.

******

There have been five additional wells completed in the Newark, East Field by XTO Energy Inc. The Brants Well No.6H is located 4.6 miles north from Lake Worth with a depth of 8,855-feet and potentialed 1.377 million cubic feet of gas when gauged on a 14/64- inch choke. The TRWD Well No.M 3H is located 2.9 miles northeast from Azle with a depth of 10,193-feet and potentialed 3.788 million cubic feet of gas when gauged on a 24/64- inch choke. The Flowers Unit Well No.1H is located two miles southeast from Mansfield with a depth of 11,860-feet. No test data was recorded for this well. The TXU TRWD N Unit Well No.6H is located 1.1 miles southeast from Kennedale with a depth of 11,683-feet and potentialed 4.407 million cubic feet of gas when gauged on a 36/64-inch choke. The TRWD Well No.M 2H is located 2.9 miles northeast from Azle with a depth of 8,834-feet and potentialed 2.934 million cubic feet of gas when gauged on a 64/64- inch choke. Production is in the Barnett Shale formation.

******

Upshur County

The Abbott Gas Unit O/A Well No.02 is located five miles northwest from Ore City in the Cedar Springs Field. Apache Corp. has completed the well to a depth of 9,522-feet. When gauged on a 48/64-inch choke, the well potentialed 82,000 cubic feet of gas. Production is in the Travis Peak 9000 formation.