EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Gregg County

The Hughes "A" Well No.1 will be drilled 6.9 miles northwest from Longview in the Willow Springs (Travis Peak Transition) Field. This well will be drilled to a depth of 8,200-feet by Dallas Production, Inc. This well will lie in the Sanchez, D Survey, A-186.

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In a lease 11.1 miles southeast from Longview, in the Oak Hill (Cotton Valley) Field, the Buford & Blow G.U. 3 Well No.9 will be drilled by Anadarko E&P Cpany LP. This well will bottom at 12,000-feet in the Walling, J Survey, A-239.

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Exco Operating Company, LP will drill the Griffin Ranch G.U. 1 Well No.13 in the Peatown (Cotton Valley, Lower) Field. This well will be drilled to bottom at 13,000- feet in the Bradley, E Survey, A-17 5.9 miles northeast from Kilgore. This well may also be drilled in a Wildcat Field.

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Harrison County

Preston Exploration LLC will drill the Deutsch Well No.3 in the Hardwood (Cotton Valley) Field. This well will be located 6.5 miles south from Marshall in the Hall, H Surve, A-10 with a depth of 13,000-feet. This well may also be drilled in a Wildcat Field or the Carthage, North (Bossier Shale) Field.

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In a lease seven miles west fropm Waskom in the Carthage, North (Bossier Shale) Field, the Riley Trust Well No.2H will be drilled by Samson Lone Star, LLC. This well will be drilled to a depth of 1,150-feet in the Anderson, H Survey, A-32.

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The Hazel Byrne Gas Unit No.2 Well No.12, the Hazel Byrne Gas Unit No.13 and the Hazel Byrne Gas Unit No.14 will be drilled by Berry Oil Co. in the Darco, Southeast (Cotton Valley) Field. The No.12 and the No.13 wells will be located 10.3 miles south from Marshall. The No.14 will be located 10.6 miles south from Marshall. The wells will lie in the Duncan, M Survey, A-197 and will bottom at 12,000-feet. The wells may also be drilled in a Wildcat Field or the Carthage, North (Bossier Shale) Field.

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NFR Energy, LLC will drill the Lynn Well No.1 in the Carthage, North (Bossier Shale) Field. This well will bottom at 12,600-feet in the Kennedy, J J Survey, A-380 and will be located two miles southeast from Marshall. The well may also be drilled in the Hardwood (Cotton Valley) Field.

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The Woodlawn (Cotton Valley) Field will see the Davis Gas Unit "F" Well No.2H drilled by BP America Production Co. This well will bottom at 13,0000-feet in the Watkins, L Survey, A-750 0.9 miles northeast from Woodlawn.

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In a lease five miles southwest from Hallsville in the Oak Hill (Cotton Valley) Field, Hart Gas Unit Well No.17 will be drilled by Enervest Operating, L.L. C. to a total depth of 11,500-feet. This well will lie in the Berry, M Survey, A-75.

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Buffco Production Inc. is preparing to drill the Porter Well No.2 to a total depth of 12,000-feet in the Oak Hill (Cotton Valley) Field. The well will be located 5.5 miles southwest from Hallsville in the Berry, M Survey, A-75. This well may also be drilled in a Wildcat Field.

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Rusk County

The C E Williamson Heirs Gas Unit Well No.12 will be drilled 5.9 miles southwest from Tatum in the Oak Hill (Cotton Valley) Field. This well will be drilled to a depth of 12,000-feet by Verado Energy, Inc. The well will lie in the Watson, D Survey, A-863.

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In a lease six miles southwest from Henderson, in the Henderson, East (Cotton Valley) Field, the Mathis Well No.1 will be drilled by Forest Oil Corp. This well will bottom at 13,500-feet in the Jacobs, W Survey, A-464. The well may also be drilled in a Wildcat Field, the Overton, Northeast (Haynesville) Field or the Carthage, North (Bossier Shale) Field.

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Machin & Associates, Inc. will drill the Blackjack Timber Co. Well No.1 to a depth of 4,200-feet in the Pleasant Grove Field. This well will be located 13 miles southwest from Henderson in the May, G Survey, A-25. The well may also be drilled in a Wildcat Field or the Pleasant Grove (Shallow) Field.

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The Kennedy, Major Estate Gas Unit Well No.26 is preparing to be drilled by Anadarko E&P Company LP to a total depth of 12,000-feet. The well will be located 20 miles northeast from Henderson in the Oak Hill (Cotton Valley) Field. The well will lie in the Walling, J Survey, A-42.

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Energen Resources Corp. will drill the Minor, A Gas Unit Well No.20 to a depth of 11,000-feet in the Oak Hill (Cotton Valley) Field. This well will be located 4.9 miles northwest from Tatum in the Walling, J Survey, A-42. This well may also be drilled in a Wildcat Field.

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The Cherokee Water Company Unit Well No.14 will be drilled by SandRidge Exploration and Production, LLC. This well will be drilled 5.6 miles northwest from Tatum in the Oak Hill (Cotton Valley) Field to a depth of 14,000- feet. This well will lie in the Walling, J Survey, A-42.

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Sandridge Onshore, LLC will drill the David Brown Gas Unit No.1 Well No.17 in the Minden (Travis Peak Consolidated) Field. This well will be located 5.9 miles southeast from Henderson in the Peck, S R Survey, A-620 with a depth of 14,000-feet. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field.

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COMPLETIONS

Gregg County

In a lease 3.8 miles east northeast from Kilgore, in the Danville Field, the Griffin Ranch Oil Unit #6 Well No.11 has been completed by Exco Operating Company, LP. This well bottoms at 7,893-feet. No test data was recorded. Production is in the Pettit - A- Oil formation.

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Rusk County

When gauged on a 128/64- inch choke, the Alexander Heirs Gas Unit No.1 Well No.10H potentialed 889,000 cubic feet of gas. This well is located 5.3 miles southwest from Henderson in the Henderson, East Field. Forest Oil Corp. has completed the well to a depth of 13,738-feet. Production is in the Cotton Valley formation.

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Anadarko E & P Company LP has completed the Kennedy Gas Unit 3 Well No.8 in the Oak Hill Field. This well is located 21.4 miles northeast from Henderson with a depth of 10,565-feet. This well potentialed 518,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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The Robert Youngblood GU Well No.6 is located 4.6 miles south of Henderson in the Henderson, East Field. This well was completed by Goodrich Petroleum Co. to a depth of 10,850-feet. When gauged on a 23/64-inch choke, the well potentialed 523,000 cubic feet of gas. Production is in the Cotton Vlley formation.

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When gauged on a 64/64-inch choke, the T.G. Hemby Well No.5 potentialed 848,000 cubic feet of gas. Danmark Energy, L.P. has completed the well in the Oak Hill Field to a depth of 10,555-feet 2.61 miles south from Tatum. Production is in the Cotton Valley formation.

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The Brachfield, Southeast Field has seen the Wilder Gas Unit Well No.1, the Birdwell Gas Unit Well No.6 and the Birdwell Gas Unit Well No.12 completed by Cabot Oil & Gas Corp. The No.1 bottoms to a depth of 11,400-feet 2.6 miles northwest from Minden. When gauged on a 27/64-inch choke, the well potentialed 2.445 million cubic feet of gas. The No.6 bottoms to a depth of 10,832-feet 2.2 miles northwest from Minden. When gauged on a 24/64-inch choke, the well potentialed 1.630 million cubic feet of gas. The No.12 bottoms at 10,808-feet 3.2 miles northwest from Minden. When gauged on a 14/64-inch choke, the well potentialed 1.017 million cubic feet of gas. Production is in the Cotton Valley formation.

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SandRidge Onshore, LLC has completed the Spikes Gas Unit No.1 Well No.16 to a depth of 10,880-feet in the Minden Field. This well is located 4.5 miles east from Henderson. When gauged on a 27/64-inch choke, the well potentialed 1.647 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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Upshur County

The Malone Heirs Well No.1 is located 9.17 miles northeast from Gilmer in the Cedar Springs Field. Maximus Operating, Ltd. has completed the well to a depth of 12,149-feet. This well was gauged on a 12/64-inch choke, the well potentialed 2.410 million cubic feet of gas. Production is in the Cotton Valley, Lower formation.