EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Anderson County

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

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Bay-Tech Operating Company, Inc. will drill the Walter B. Brown Well No.2 in the Nevis (Rodessa) Field. This well will bottom at 10,500-feet 4.7 miles southeast from Neches in the Anderson CSL Survey, A-73.

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Hopkins County

A Wildcat Field will see the A. K. Gillis Unit Well No.3 drilled by West Mountain Operating Company, Inc. This well will bottom at 12,000-feet in the Yates, T Survey, A-1103 three miles northwest from Sulphur Springs.

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Panola County

In a lease 1.5 miles south from Tatum, in the Beckville, North (Cotton Valley) Field, the T.G. Hemby Gas Unit Well No.2 will be drilled by Preston Exploration LLC. This well will bottom at 13,000-feet in the Gooden, W Survey, A-221 and may also be drilled in a Wildcat Field, the Beckville, North (Travis Peak) Field or the Beckville, North (Pettit) Field.

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Anadarko E&P Company LP will drill the South Gary Gas Unit 2 Well No.7 and the CGU 8 Well No.13R in the Carthage (Cotton Valley) Field. The No.7 well will be located 1.4 miles southeast from Gary in the Snider, S Survey, A-642 with a depth of 12,000- feet. The No.13R well will be located 3.9 miles southwest from Carthage in the Longacre, U J Survey, A-403 with a depth of 11,000-feet.

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The Page, L.E. Well No.15 H will be drilled 7.9 miles southwest from Carthage in the Carthage (Cotton Valley) Field. Devon Energy Production Company, L.P. will drill the well to a depth of 14,000-feet in the Humphries, S Survey, A-334. The well may also be drilled in a Wildcat Field.

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The Sempra Energy Well No.2 will be drilled by Classic Operating Company LLC. This well will be drilled five miles west from Joaquin in the Carthage (Cotton Valley) Field to a depth of 10,000-feet. This well will lie in the Woolworth, J M Survey, A- 882 and may also be drilled in the Joaquin (Travis Peak) Field.

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In a lease two miles southwest from Fairplay, in the Beckville (Cotton Valley) Field, the Taylor Bros. Well No.3 will be drilled by Goodrich Petroleum Co. This well will bottom at 11,500-feet in the Flores, P Survey, A-198 and may also be drilled in a Wildcat Field.

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Buffco Production Inc. will prepare to drill the Brown Well No.4 and the Brown Well No.5 in the Beckville (Cotton Valley) Field. Both wells will bottom at 12,000-feet in the Staton, E Survey, A-628. The No.4 will be located 3.7 miles northwest from Beckville. The No.5 will be located 3.4 miles northwest from Beckville.

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The Morgan Unit Well No.24 will be drilled 3.5 miles northeast from Carthage in the Carthage (Cotton Valley) Field. Devon Energy Production Company, L.P. will drill the well to a depth of 14,000-feet in the Wallace, B R Survey, A-710. This well may also be drilled in a Wildcat Field.

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A Wildcat Field will see the Werner-Matthews Well No.2 drilled by St. Mary Land & Exploration Co. This well will be located 5.9 miles southeast from DeBerry in the Matthews, J Survey, A-421 to a depth of 11,000- feet. This well may also be drilled in the Centennial, East (Cotton Valley) Field.

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Robertson County

In a lease 12.8 miles northeast from Franklin, in the Bald Prairie (Cotton Valley Consolidated) Field, the J.C. Kennedy Gas Unit Well No.5 will be drilled by XTO Energy Inc. This well will bottom at 14,000-feet in the Ezra Corry Survey, A-102.

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Burlington Resources O & G Company LP will drill the BR Pelton Well No.1 in the Ici (Georgetown) Field. This well will be located 5.6 miles southeast from Franklin in the Henry, H Survey, A-17 and will bottom at 16,000-feet.

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The R. Sullivan Gas Unit Well No.2 will be drilled 0.5 miles northwest from Franklin in the Bald Prairie (Cotton Valley Consolidated) Field. XTO Energy Inc. will drill the well to a depth of 16,600-feet in the Slauter, F Survey, A-335.

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Rusk County

Energen Resources Corp. will drill the Hutchings, J. Unit Well No.21 in the Oak Hill (Cotton Valley) Field. This well will bottom at 11,000-feet in the Walling, J Survey, A-42. Location will be 5.4 miles northwest from Tatum.

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The Nona B. Gossett Gas Unit Well No.1 will be drilled 9.1 miles southeast from Henderson in a Wildcat Field by Will-Drill Production Company, Inc. This well will bottom at 12,000-feet in the Chireno, J A Survey, A-159. This well may also be drilled in the Carthage (Cotton Valley) Field, the J.G.S. (Travis Peak 7140) Field, the Pinehill, Southeast (Pettit, Upper) Field, the Minden (Cotton Valley Lime) Field, the Brachfield, Southeast (Cotton Valley) Field, the Overton, North (Haynesville) Field, the Carthage, North (Bossier Shale) Field, the Minden (Transition) Field, the Penn-Griffith (Pettit Upper) Field, the Itex (Pettit) Field, the Shiloh (Rodessa) Field, Cal Noble (Pettit) Field, the Tom Steele (Transition) Field, the Pinehill (Travis Peak - C-) Field, the Overton, Northeast (Haynesville) Field, the J.G.S. (Rodessa-C-) Field, the Minden (Travis Peak Consolidated) Field, the Minden (Cotton Valley Consolidated) Field, the Beckville (Travis Peak) Field, the Penn- Griffith, West (Pettit, Lower) Field, the Beckville (Cotton Valley) Field, the J.G.S. (Rodessa Gloyd) Field, the Kate Phillips (Travis Peak) Field, the Brachfield (Rodessa) Field, the Long Branch (Pettet Lower) Field, the Pinehill, Southeast (Pettit, Lower) Field, the Itex (Travis Peak) Field or the Martha Jane (Pettit, Upper) Field.

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A Wildcat Field will see the Cadenhead Gas Unit Well No.2 drilled by Cabot Oil & Gas Corp. This well will be located 5.63 miles northeast from Mt. Enterprise in the Mc Knight, A M Survey, A-570. This well will bottom at 13,500-feet and may also be drilled in the Brachfield, Southeast (Cotton Valley) Field.

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The Alford Well No.2 will be drilled 2.2 miles west from Minden in a Wildcat Field by M.E. Operating & Services, Inc. This well will bottom at 11,200-feet in the Reel, J Survey, A-33. The well may also be drilled in the Brachfield, Southeast (Cotton Valley) Field, the Minden (Travis Peak Consolidated) Field or the Minden, West (Rodessa Hill) Field.

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Buffco Production Inc. is preparing to drill the J. D. Lowe, Jr. Well No.1 in a Wildcat Field to a depth of 12,000-feet. The well will be located one mile west from Laneville in the Williams, W Survey, A-45 and may also be drilled in the Henderson, East (Cotton Valley) Field, the Minden (Travis Peak Consolidated) Field, the Laura Grace (Travis Peak) Field, the Buckner Creek (Travis Peak) Field or the Charles H. Davis (Pettit Crane) Field.

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In a lease six miles west from Henderson, in the Henderson, East (Cotton Valley) Field, the Galan White Gas Unit Well No.13 will be drilled by Forest Oil Corp. This well will bottom at 13,500-feet in the Pena, M V Survey, A-27 and may also be drilled in the Carthage, North (Bossier Shale) Field.

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The Peal Gas Unit Well No.4 will be drilled 5.4 miles southeast from Henderson in the Minden (Cotton Valley Consolidated) Field by SandRidge Onshore, LLC. This well will bottom at 12,000-feet in the Peck, S R Survey, A-620 and may also be drilled in the Minden (Travis Peak Consolidated) Field.

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Upshur County

The Stocks Well No.1 will be drilled 8.02 miles northeast from Gilmer in a Wildcat Field. Maximus Operating, Ltd. will drill the well to a depth of 12,500-feet in the Goy, J B Survey, A-168. This well may also be drilled in the Cedar Springs (Maddox 10730) Field or the Cedar Springs (Cotton Valley Lower) Field.

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Exxon Mobil Corp. will drill the Hawkins Field Unit Well No.1163 and the Hawkins Field Unit Well No.2803 in the Hawkisn Field. The wells will be drilled 1.42 miles northwest from Hawkins in the Pollock, J Survey, A-449. The No.1163 will bottom at 6,100-feet. The No.2803 will bottom at 6,200-feet.

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Wood County

The Dogwood Well No.1 will be drilled seven miles northwest from Hawkins in a Wildcat Field. Pine Ridge Operating, L.P. will drill the well to a depth of 6,500- feet in the Fisher, W Survey, A- 209.

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COMPLETIONS

Gregg County

The Cherokee Water Company Unit Well No.11 has been completed in the Oak Hill Field by SandRidge Exploration and Production, LLC. No location recorded. Total depth is 11,070- feet. When gauged on a 31/64- inch choke, the well potentialed 3.023 million cubic feet of gas. Production is in the Cotton Valley formation.

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Samson Lone Star, LLC has completed the Flanagan Well No.14 in the Danville Field. This well is located 3.5 miles east of Kilgore with a depth of 10,920- feet. When gauged on a 28/64- inch choke, the well potentialed 4.212 million cubic feet of gas. Production is in the Travis Peak- Cotton Valley Consolidated formation.

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Panola County

When gauged on an adjustable choke, the Wedgeworth Well No.7-H potentialed 1.614 million cubic feet of gas. This well has been completed by Devon Energy Production Company, L.P. in the Carthage Field to a depth of 12,650-feet. Location is 7.4 miles southwest from Carthage with production in the Cotton Valley formation.

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The Edens Well No.21 is located nine miles west of Carthage in the Carthage Field. Chinn Exploration Co. has completed the well to a depth of 10,112-feet. This well was gauged on a 16/64- inch choke and potentialed 1.130 million cubic feet of gas. Production is in the Cotton Valley formation.

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Anadarko E & P Company LP has completed the Neal, John S. Unit Well No.9 in the Carthage Field. This well is located 7.4 miles southeast from Carthage with a depth of 9,687- feet. When gauged on an adjustable choke, the well potentialed 1.669 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Mauritzen, J.C. Well No.10 potentialed 1.124 million cubic feet of gas. This well was completed 8.4 miles southwest from Carthage in the Carthage Field by Devon Energy Production Company, L.P. Total depth is 9,776-feet. Production is in the Cotton Valley formation.

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Devon Energy Production Company, L.P. has completed the Mauritzen, J.C. Well No.11 H in the Carthage Field to a depth of 11,760-feet. When gauged on an adjustable choke, the well potentialed 759,000 cubic feet of gas. Location is 8.4 miles southwest from Carthage. Production is in thee Cotton Valley formation.

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The Freeman Gas Unit Well No.13 is located 9.6 miles northwest from Carthage in the Carthage Field. Anadarko E&P Company LP has completed the well to a depth of 10,097-feet. When gauged on an adjustable choke, the well potentialed 1.378 million cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

Forest Oil Corp. has completed the Harmon Gas Unit No.1 Well No.11 in the Henderson, East Field. This well was completed to a depth of 11,230-feet seven miles northwest from Henderson. When gauged on a 26/64-inch choke, the well potentialed 308,000 cubic feet of gas. Production is in the Cotton Valley formation.

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The R.T. Smith Gas Unit Well No.3 has been completed 2.87 miles northeast from Minden in the Brachfield, Southeast Field. Fidelity Exploration & Production Co. has completed the well to a dpeth of 10,928-feet. When gauged on a 48/64-inch choke, the well potentialed 2.356 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 36/64- inch choke, the Tipps Gas Unit Well No.8 potentialed 110,000 cubic feet of gas. This well was drilled to a depth of 152,106-feet in the Brachfield, Southeast Field by Cabot Oil & Gas Corp. No location was recorded. Production is in the Cotton Valley formation.

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The Hays Gas Unit Well No.3 is located 2.7 miles north from Minden in the Brachfield, Southeast Field. Cabot Oil & Gas Corp. has completed the well to a depth of 10,837-feet. When gauged on a 14/64-inch choke, the well potentialed 1.095 million cubic feet of gas. Production is in the Cotton Valley formation.

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San Augustine County

The Timberstar Well No.3 is located 11.8 miles southeast of Center in the Angie Field. Cabot Oil & Gas Corp. has completed the well to a depth of 11,955-feet. This well was gauged on a 64/64- inch choke and potentialed 9.363 million cubic feet of gas. Production is in the James Lime formation.

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Upshur County

The Spencer G.U. #1 Well No.5 is located 5.8 miles northwest of Gilmer in the Rosewood Field. McBee Operating Company, LLC has completed this well to bottom at 11,261-feet. When gauged on a 48/64-inch choke, the well potentialed 1.556 million cubic feet of gas. Production is in the Cotton Valley formation.

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The D. J. White Gas Unit Well No.2H is located 4.8 miles southwest from Gilmer in the Gilmer Field. Forest Oil Corp. has completed the well to a depth of 14,612-feet. The well potentialed 4.037 million cubic feet of gas, choke size not recorded. Production is in the Cotton Valley Sands formation.

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