EAST TEXAS DRILLING REPORT

EDEVELOPMENTAL

Anderson County

The Willis Gas Unit Well No.1H will be drilled 3.2 miles northeast from Palestine in a Wildcat Field. Hunt Oil Co. will drill the well to a depth of 11,000-feet in the Barnes, T F Survey, A-6. This well may also be drilled in the Palestine (Pettit 10,390) Field.

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Cherokee County

In a lease 13.4 miles southwest from Rusk in the Southern Pine (Travis Peak) Field, the Parker Gas Unit Well No.7 will be drilled by Cordillera Texas, L.P. This well will bottom at 11,300- feet in the Burnham, S Survey, A-9.

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XTO Energy Inc. will drill the Chronister Heirs Well No.38 in the Doyle Creek (Travis Peak) Field. This well will be located 7.2 miles southeast from Alto in the Durst, J Survey, A-15 with a depth of 12,800-feet. This well may also be drilled in the Doyle Creek (Pettit) Field.

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The Jakubik Well No.7H will be drilled 0.5 miles south from Troup in the Overton (Cotton Valley Sand) Field. This well will be drilled to a depth of 15,000-feet in the George, W Survey, A-295 by Wagner & Brown, Ltd.

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Gregg County

Anadarko E&P Company LP will drill the Buford Well No.8 in the Oak Hill (Cotton Valley) Field. This well will be located 11.9 miles southeast from Longview in the Walling, J Survey, A-239 and will bottom at 12,000-feet.

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Harrison County

The Sandy Gas Unit Well No.5 will be drilled 5.5 miles north from Elysian Field in the Waskom (Cotton Valley) Field. Samson Lone Star, LLC will drill the well to a depth of 13,000-feet in the Wallace, L Survey, A-744. The well may also be drilled in a Wildcat Field.

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Triple S Management, LLC will drill the Harrison Co. SWD Well No.1 in the Longwood (Goodland Lime) Field. This well will be located six miles west from Waskom with a depth of 3,000-feet in the Walling, J C Survey, A-737.

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In a lease 17 miles northeast from Marshall, in the Carthage, North (Bossier Shale) Field, the Peteet Well No.1 will be drilled by Valence Operating Co. This well will bottom at 12,500-feet in the Johnson, G Survey, A-359.

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NFR Energy, LLC will prepare to drill the Martin Gas Unit No.1 Well No.6H in a Wildcat Field and the Gant Estate Well No.3 in the Gooch-Gant (Rodessa) Field. The No.6H well will be located six miles southeast from Longview in the Hill, J Survey, A-300. Total depth will be 12,000-feet. This well may also be drilled in the Oak Hill (Cotton Valley) Field. The No.3 well will be located five miles southeast from Harleton in the Jones, E S Survey, A- 376. Total depth will be 12,500-feet. This well may also be drilled in the Gooch-Gant (Travis Peak) Field, the Carthage, North (Bossier Shale) Field or the Woodlawn (Cotton Valley) Field.

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A Wildcat Field will see the Grogan, Millie Well No.3 drilled to a depth of 10,000-feet by M.E. Operating & Services, Inc. This well will be located 6.7 miles northwest from Waskom in the Fuller, F Survey, A-8. This well may also be drilled in the Longwood (Cotton Valley) Field, the Waskom, North (Pettit) Field, the Waskom (Cotton Valley) Field, the Lotta (Cotton Valley) Field, the Longwood (Travis Peak) Field, the Waskom, North (Hill) Field or the Leigh (Pettit, Lower) Field.

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The TJ Taylor Well No.18H will be drilled 2.5 miles west from Karnack in the Carthage, North (Cotton Valley) Field. Forest Oil Corp. will drill the well to a depth of 13,000-feet.

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GMX Resources Inc. will drill the Bell Well No.3H and the Bradley Well No.1A. The No.3H well will be drilled seven miles southeast from Marshall in the Carthage, North (Bossier Shale) Field with a depth of 14,000-feet. This well will lie Earle, D Survey, A-235 and may also be drilled in a Wildcat Field. The No.1A well will be drilled ten miles southeast from Marshall in the Bethany (Travis Peak Consolidated) Field with a depth of 7,500-feet. This well will lie in the Williams, W Survey, A-757 and may also be drilled in a Wildcat Field or the Bethany (Pettit 6170) Field.

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In a lease 16.9 miles northeast from Marshall in the Carthage, North (Bossier Shale) Field, the Whelan Well No.1 will be drilled by Valence Operating Co. This well will be drilled to a depth of 12,500-feet in the Johnson, G Survey, A-359. The well may also be drilled in the Woodlawn (Travis Peak) Field, the Woodlawn (Pettit-Page) Field or the Woodlawn (Cotton Valley) Field.

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The Furrh Well No.1 will be drilled by Valence Operating Co. in the Carthage, North (Bossier Shale) Field. This well will be located 17.3 miles northeast from Marshall in the Johnson, G Survey, A-359 with a depth of 12,500-feet.

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Enervest Operating, L.L.C. will drill the Hart Gas Unit Well No.12 in a Wildcat Field and the Resch Gas Unit Well No.15. The No.12 well will be located five miles west from Hallsville. This well will lie in the Blair, Hrs. J Surve, A-74 with a depth of 11,000-feet and may also be drilled in the Oak Hill (Cotton Valley) Field. The No.15 well will be located four miles west from Hallsville. This well will lie in the Real, A Survey, A-594 with a depth of 11,000-feet.

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The Abney, C.M. "B" Well No.22H and the Cypress Hill SWD Well No.1 will be drilled by Devon Energy Production Company, L.P. The No.22H well will be lcoated 2.1 miles southwest from Waskom in the Waskom (Cotton Valley) Field with a depth of 14,000-feet in the Wilson, T D Survey, A-811. The No.1 well will be located 5.6 miles southwest from Waskom in the Waskom (Travis Peak 1) Field with a depth of 6,000-feet in the Parks, W Survey, A-558.

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Henderson County

West Mountain Operating Company, Inc. will drill the Catfish Creek Well No.3 in the Kris Perryman (Rodessa) Field. This well will be located ten miles southeast from Athens in the Hall, W V Survey, A-285 with a depth of 11,000-feet. The well may also be drilled in a Wildcat Field.

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Panola County

Devon Energy Production Company, L.P. will drill the Page, L.E. Well No.12, the Page, L.E. Well No.16 and the Page, L.E. Well No.17 in the Carthage (Cotton Valley) Field. These wells will be located 7.4 miles southwest from Carthage in the Ferguson, A Survey, A-211 with a depth of 12,500-feet.

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The Pitts A Unit Well No.10 and the Panola 2 Unit Well No.17 will be drilled by ConocoPhillips Co. in the Carthage (Cotton Valley) Field. The No.10 well will be located 9.1 miles east from Carthage in the Kelly, T Survey, A-372. Total depth will be 10,100-feet. The No.17 well will be located 8.9 miles east from Carthage in the Lee, J Survey, A-395. Total depth will be 10,150-feet.

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There will be two additional wells drilled by Devon Energy Production Company, L.P. The Steele, Corrie Unit Well No.A 25H will be located 16.4 miles northeast from Carthage in the Bethany, East (Cotton Valley) Field. The well will bottom at 13,000-feet in the Jordan, B C Survey, A-348 and may also be drilled in a Wildcat Field. The McRae, Blanche Well No.13 will be located 8.3 miles south from Carthage in the Carthage (Cotton Valley) Field. The well will bottom at 12,500-feet in the Morris, E Survey, A-432.

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The Markey Gas Unit Well No.14 will be drilled by Anadarko E&P Company LP in the Carthage (Cotton Valley) Field. This well will be located 8.7 miles northwest from Carthage in the Spencer, J Survey, A-589 and will bottom at 12,000-feet.

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Chevron U.S.A. Inc. will prepare to drill the Werner "F" Gas Unit Well No.3 in a Wildcat Field. This well will be located 12 miles northeast from Carthage in the Vaughn, W Survey, A- 695 with a depth of 12,500-feet. This well may also be drilled in the Carthage (Cotton Valley) Field or the Carthage (Travis Peak) Field.

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In a lease 2.6 miles southwest from Fairplay, in a Wildcat Field, the Billy Jack Sealey Well No.2 will be drilled by Goodrich Petroleum Co. This well will bottom at 12,500-feet in the Biggs, H Survey, A-65 and may also be drilled in the Beckville (Cotton Valley) Field or the Beckville (Travis Peak) Field.

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Rusk County

In a lease 22.6 miles northeast from Henderson, in the Oak Hill (Cotton Valley) Field, the Bailey Sheppard Et Al Well No.41 will be drilled by Anadarko E & P Company LP. This well will bottom at 12,000-feet in the Williamson, R Survey, A-46.

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The Ms. Jackie Well No.3 will be drilled six miles northeast from Cushing in a Wildcat Field. Enerquest Corp. will drill the well to bottom at 10,000- feet in the Acosta, J Y Survey, A-50. This well may also be drilled in the Trawick, North (Travis Peak) Field, the Trawick, North (Pettit) Field or the Trawick, North (Rodessa) Field.

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Energen Resources Corp. will drill the Minor, A. Gas Unit Well No.14 to a depth of 11,000-feet in the Oak Hill (Cotton Valley) Field. This well will be located four miles northwest from Tatum in the Lee, I Survey, A-17 and may also be drilled in a Wildcat Field.

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In a lease 6.5 miles west from Henderson, in the Henderson, East (Cotton Valley) Field, the Whitehead Well No.3 will be drilled by Chinn Exploration Co. This well will bottom at 11,000- feet in the Lewis, C Survey, A-512.

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The David Brown Gas Unit No.1 Well No.2 will be drilled 5.9 miles southeast from Henderson in a Wildcat Field. Sandridge Onshore, LLC will drill the well to a depth of 14,000-feet in the Peck, S R Survey, A-620. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field, the Minden (Travis Peak Consolidated) Field or the Minden (Cotton Valley Lime) Field.

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Upshur County

In a lease 2.3 miles east from Diana in the New Diana (Woodbine) Field, the Florence Well No.1 will be drilled by Harleton Oil & Gas Inc. This well will bottom at 4,000-feet in the Scott, J Survey, A-440.

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Gregg County

The Robbins "N" Well No.15 has been completed by Chinn Exploration Co. in the Oak Hill Field. This well was competed to a dpethof 11,121-feet 8.7 miles east of Longview. When gauged on a 14/64-inch choke, the well potentialed 739,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Riverstone Energy Operating, LLC has completed the Rudd Well No.1-A in the Longwood Field. This well bottoms at 9,64-feet, no location recorded. When gauged on a 14/64-inch choke, the well potentialed 950,000 cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 9.9 miles south from Marshall in the Carthage, North Field, the Doyle Harris Gas Unit Well No.6 has been completed by Berry Oil Co. This well bottoms at 11,905-feet and potentialed 1.878 million cubic feet of gas when gauged on a 12/64-inch choke. Production is in the Bossier Shale formation.

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Comstock Oil & Gas has completed the Moore Well No.A3 in the Waskom Field. This well was completed eight miles east northeast from Elysian Fields with a depth of 9,820- feet. The well was gauged on a 16/64- inch choke and potentialed 560,000 cubic feet of gas. Production is in the 6500 Travis Peak formation.

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The Letourneau Gas Unit 6 Well No.19 is located 17.6 miles southwest from Marshall in the Oak Hill Field. Anadarko E&P Compay LP has completed the well to a depth of 10,745- feet. When gauged on an adjustable choke, the well potentialed 936,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 32/64-inch choke, the Erisman Well No.1 potentialed 1.025 million cubic feet of gas. Craton Energy Holdings III LP has completed the well to a depth of 10,990-feet in the Oak Hill Field 3.1 miles southwest of Hallsville. Production is in the Cotton Valley formation.

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Craton Energy Holdings III, LP has completed the Cannon Gas Unit Well No.1 in the Oak Hill Field. This well is located 2.4 miles southwest of Hallsville with a depth of 10,832-feet. When gauged on a 28/64-inch choke, the well potentialed 885,000 cubic feet of gas. Production is in the Cotton Valley formation.

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The North Jonesville "B" Well No.15 is located two miles northwest from Jonesville in the Waskom Field. Winchester Production Company, Ltd. has completed the well to a depth of 9,000-feet. When gauged on a 18/64- inch choke, the well potentialed 1.488 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 18/64-inch choke, the Doyle Harris Gas Unit Well No.6 potentialed 475,000 cubic feet of gas. This well is located 9.9 miles south from Marshall. Berry Oil Co. drilled the well to a depth of 11,905-feet. Production is in the Cotton Valley formation.

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Panola County

Chesapeake Operating, Inc. has completed the Banks, W.R. Well No.11, the Fred Kyle Unit Well No.14 and the Reed Estate Gas Unit Well No.8 in the Carthage Field. The No.11 well is located 1.7 miles southwest from Carthge with a depth of 9,726-feet. When gauged on an adjustable choke, the well potentialed 794,000 cubic feet of gas. The No.14 well is located 4.6 miles southeast from Carthage with a depth of 9,563-feet. When gauged on an adjustable choke, the well potentialed 531,000 cubic feet of gas. The No.8 well is located 8.9 miles southwest from Beckville with a depth of 10,180- feet. When gauged on a 22/64-inch choke, the well potentialed 650,000 cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 8.6 miles southeast of Carthage in the Carthage Field, the Callow 2 Unit Well No.13 has been completed by ConocoPhillips Co. This well bottoms at a depth of 9,575-feet. When gauged on a 26/64-inch choke, the well potentialed 1.966 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Callow 2 Unit Well No.14 is located 9.1 miles southeast from Carthage in the Carthage Field. ConocoPhillips Co. has completed the well to a depth of 9,585-feet. When gauged on a 25/64-inch choke, the well potentialed 2.324 million cubic feet of gas. Production is in the Cotton Valley formation.

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Goodrich Petroleum Co. has completed the Lutheran Church Well No.4 in a Wildcat Field. Location is 6.9 miles southwest of Tatum with a depth of 11,350-feet. This well was gauged on an adjustable choke and potentialed 388,000 cubic feet of gas.

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Chesapeake Operating, Inc. has completed the Thomas & Wood Well No.15 in the Carthage Field to a depth 9,475-feet. The well is located 2.6 miles southeast from Carthage. When gauged on an adjustable choke, the well potentialed 1.248 million cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

Forest Oil Corp. has completed the Dollar Gas Unit No.1 Well No.9 in the Henderson, East Field. The well is located four miles west from Henderson with a depth of 11,127-feet. When gauged on a 26/64-inch choke, the well potentialed 1.987 million cubic feet of gas. Production is in the Cotton Valley formation.

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There have been five new wells completed in the Minden Field by El Paso E & P Company, L.P. The Cobra #2 Well No.2 is located 6.8 miles southeast from Henderson with a depth of 10,980-feet and potentialed 1.429 million cubic feet of gas when gauged on a 20/64-inch choke. The Cobra #2 Well No.4 is located seven miles southeast from Henderson with a depth of 10,980-feet and potentialed 1.556 million cubic feet of gas when gauged on a 48/64-inch choke. The Stingray Gas Unit Well No.6 is located 6.7 miles southeast from Henderson with a depth of 10,949-feet and potentialed 2.127 million cubic feet of gas when gauged on a 24/64-inch choke. The Viper 3 Well No.5 is located 4.6 miles southeast from Henderson with a depth of 10,950-feet and potentialed 1.683 million cubic feet of gas when gauged on a 20/64-inch choke. The Viper 3 Well No.8 is located 4.4 miles southeast from Henderson with a depth of 10,887-feet and potentialed 2.289 million cubic feet of gas when gauged on a 24/64- inch choke. Production is in the Cotton Valley Consolidated formation.

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Goodrich Petroleum Co. has completed the Youngblood, Robert GU Well No.7 and the Rayford, Bess GU Well No.5 in the Henderson, East Field. The No.7 well is located 4.1 miles southeast of Henderson with a depth of 10,940-feet. When gauged on an adjustable choke, the well potentialed 960,000 cubic feet of gas. The No.5 well is located 3.34 miles southeast from Henderson with a depth of 10,975-feet. When gauged on an adjustable choke, the well potentialed 517,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 48/64-inch choke, the Kangerga 1 Well No.10 potentialed 899,000 cubic feet of gas. El Paso E & P Company, L.P. has completed the well 2.6 miles southeast from Henderson with a depth of 10,900-feet. Production is in the Cotton Valley Consolidated formation.

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Upshur County

In a lease 5.8 miles northwest of Gilmer, in the Rosewood Field, the Spencer G.U. No.1 Well No.3 has been completed by McBee Operating Company, LLC. This well bottoms at 11,175-feet and potentialed 663,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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Apache Corp. has completed the Allgood Gas Unit 1 Well No.02 in the Gilmer Field to a depth of 12,000-feet. Location is three miles northeast from Gilmer. When gauged on a 48/64-inch choke, the well potentialed 527,000 cubic feet of gas. Production is in the Cotton Valley Sand formation.